DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 29, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Washington Trust Bancorp Inc | ||
Entity Central Index Key | 737,468 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | Q4 | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 17,023,451 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 572,663,277 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets: | ||
Cash and due from banks | $ 93,222 | $ 76,386 |
Short-term investments | 4,409 | 3,964 |
Mortgage loans held for sale (including $33,969 in 2015 and $30,321 in 2014 measured at fair value) | 38,554 | 45,693 |
Securities: | ||
Available for sale, at fair value | 375,044 | 357,662 |
Held to maturity, at amortized cost (fair value $20,516 in 2015 and $26,008 in 2014) | 20,023 | 25,222 |
Total securities | 395,067 | 382,884 |
Federal Home Loan Bank stock, at cost | 24,316 | 37,730 |
Loans: | ||
Commercial | 1,654,547 | 1,535,488 |
Residential real estate | 1,013,555 | 985,415 |
Consumer | 345,025 | 338,373 |
Total loans | 3,013,127 | 2,859,276 |
Less allowance for loan losses | 27,069 | 28,023 |
Net loans | 2,986,058 | 2,831,253 |
Premises and equipment, net | 29,593 | 27,495 |
Investment in bank-owned life insurance | 65,501 | 63,519 |
Goodwill | 64,059 | 58,114 |
Identifiable intangible assets, net | 11,460 | 4,849 |
Other assets | 59,365 | 54,987 |
Total assets | 3,771,604 | 3,586,874 |
Liabilities: | ||
Demand deposits | 537,298 | 459,852 |
NOW accounts | 412,602 | 326,375 |
Money market accounts | 823,490 | 802,764 |
Savings accounts | 326,967 | 291,725 |
Time deposits | 833,898 | 874,102 |
Total deposits | 2,934,255 | 2,754,818 |
Federal Home Loan Bank advances | 378,973 | 406,297 |
Junior subordinated debentures | 22,681 | 22,681 |
Other liabilities | 60,307 | 56,799 |
Total liabilities | $ 3,396,216 | $ 3,240,595 |
Commitments and contingencies | ||
Shareholders’ Equity: | ||
Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 17,019,578 shares in 2015 and 16,746,363 shares in 2014 | $ 1,064 | $ 1,047 |
Paid-in capital | 110,949 | 101,204 |
Retained earnings | 273,074 | 252,837 |
Accumulated other comprehensive loss | (9,699) | (8,809) |
Total shareholders’ equity | 375,388 | 346,279 |
Total liabilities and shareholders’ equity | $ 3,771,604 | $ 3,586,874 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Mortgage loans held for sale, fair value | $ 33,969 | $ 30,321 |
Securities held to maturity, fair value | $ 20,516 | $ 26,008 |
Common stock, par value (in dollars per share) | $ 0.0625 | $ 0.0625 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 17,019,578 | 16,746,363 |
Common stock, shares outstanding (in shares) | 17,019,578 | 16,746,363 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest income: | |||
Interest and fees on loans | $ 114,229 | $ 107,842 | $ 102,481 |
Interest on securities: Taxable | 8,875 | 10,437 | 11,008 |
Interest on securities: Nontaxable | 1,555 | 2,149 | 2,553 |
Dividends on corporate stock and Federal Home Loan Bank stock | 953 | 561 | 148 |
Other interest income | 138 | 128 | 158 |
Total interest and dividend income | 125,750 | 121,117 | 116,348 |
Interest expense: | |||
Deposits | 13,142 | 12,937 | 12,420 |
Federal Home Loan Bank advances | 7,746 | 7,698 | 10,643 |
Junior subordinated debentures | 871 | 964 | 1,484 |
Other interest expense | 9 | 13 | 16 |
Total interest expense | 21,768 | 21,612 | 24,563 |
Net interest income | 103,982 | 99,505 | 91,785 |
Provision for loan losses | 1,050 | 1,850 | 2,400 |
Net interest income after provision for loan losses | 102,932 | 97,655 | 89,385 |
Noninterest income: | |||
Wealth management revenues | 35,416 | 33,378 | 31,825 |
Merchant processing fees | 0 | 1,291 | 10,220 |
Mortgage banking revenues | 9,901 | 7,152 | 13,293 |
Service charges on deposit accounts | 3,865 | 3,395 | 3,256 |
Card interchange fees | 3,199 | 3,057 | 2,788 |
Income from bank-owned life insurance | 1,982 | 1,846 | 1,850 |
Loan related derivative income | 2,441 | 1,136 | 951 |
Equity in earnings (losses) of unconsolidated subsidiaries | (293) | (276) | (107) |
Net gain on sale of business line | 0 | 6,265 | 0 |
Other income | 1,829 | 1,771 | 1,493 |
Noninterest income, excluding other-than-temporary impairment losses | 58,340 | 59,015 | 65,569 |
Total other-than-temporary impairment losses on securities | 0 | 0 | (294) |
Portion of loss recognized in other comprehensive income (before tax) | 0 | 0 | (3,195) |
Net impairment losses recognized in earnings | 0 | 0 | (3,489) |
Total noninterest income | 58,340 | 59,015 | 62,080 |
Noninterest expense: | |||
Salaries and employee benefits | 63,024 | 58,530 | 60,052 |
Net occupancy | 7,000 | 6,312 | 5,769 |
Equipment | 5,533 | 4,903 | 4,847 |
Merchant processing costs | 0 | 1,050 | 8,682 |
Outsourced services | 5,111 | 4,483 | 3,662 |
Legal, audit and professional fees | 2,741 | 2,336 | 2,330 |
FDIC deposit insurance costs | 1,846 | 1,762 | 1,761 |
Advertising and promotion | 1,526 | 1,546 | 1,464 |
Amortization of intangibles | 904 | 644 | 680 |
Debt prepayment penalties | 0 | 6,294 | 1,125 |
Acquisition related expenses | 989 | 0 | 0 |
Other expenses | 8,255 | 8,987 | 8,413 |
Total noninterest expense | 96,929 | 96,847 | 98,785 |
Income before income taxes | 64,343 | 59,823 | 52,680 |
Income tax expense | 20,878 | 18,999 | 16,527 |
Net income | $ 43,465 | $ 40,824 | $ 36,153 |
Weighted average common shares outstanding - basic | 16,879 | 16,689 | 16,506 |
Weighted average common shares outstanding - diluted | 17,067 | 16,872 | 16,664 |
Per share information: | |||
Basic earnings per common share (in dollars per share) | $ 2.57 | $ 2.44 | $ 2.18 |
Diluted earnings per common share (in dollars per share) | 2.54 | 2.41 | 2.16 |
Cash dividends declared per share (in dollars per share) | $ 1.36 | $ 1.22 | $ 1.03 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 43,465 | $ 40,824 | $ 36,153 | ||
Securities available for sale: | |||||
Changes in fair value of securities available for sale | (3,171) | 1,021 | (6,696) | ||
Net losses on securities classified into earnings | 0 | 0 | 188 | [1] | |
Net change in fair value of securities available for sale | (3,171) | 1,021 | (6,508) | ||
Reclassification adjustment for other-than-temporary impairment losses transferred into earnings | 0 | 0 | 1,937 | [2] | |
Cash flow hedges: | |||||
Change in fair value of cash flow hedges | (53) | (38) | (35) | ||
Net cash flow hedge losses reclassified into earnings | [3] | 297 | 369 | 423 | |
Net change in fair value of cash flow hedges | 244 | 331 | 388 | ||
Defined benefit plan obligation adjustment | [4] | 2,037 | (8,608) | 13,129 | |
Total other comprehensive (loss) income, net of tax | (890) | (7,256) | 8,946 | ||
Total comprehensive income | $ 42,575 | $ 33,568 | $ 45,099 | ||
[1] | Reported as net realized gains on securities and total other-than-temporary impairment losses on securities in the Consolidated Statements of Income. | ||||
[2] | Reported as the portion of loss recognized in other comprehensive income in the Consolidated Statements of Income. | ||||
[3] | Included in interest expense on junior subordinated debentures in the Consolidated Statements of Income. | ||||
[4] | Included in salaries and employee benefits expense in the Consolidated Statements of Income. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Common stock, shares outstanding, beginning balance at Dec. 31, 2012 | 16,380,000 | ||||
Stockholders' equity, beginning balance at Dec. 31, 2012 | $ 295,652 | $ 1,024 | $ 91,453 | $ 213,674 | $ (10,499) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 36,153 | 36,153 | |||
Total other comprehensive income (loss), net of tax | 8,946 | 8,946 | |||
Cash dividends declared | (17,232) | (17,232) | |||
Share-based compensation | 1,876 | 1,876 | |||
Deferred compensation plan, shares | 2,000 | ||||
Deferred compensation plan | 30 | $ 0 | 30 | ||
Common stock issued for acquisition | 0 | ||||
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit, shares | 232,000 | ||||
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit | 4,221 | $ 14 | 4,207 | ||
Common stock, shares outstanding, ending balance at Dec. 31, 2013 | 16,614,000 | ||||
Stockholders' equity, ending balance at Dec. 31, 2013 | 329,646 | $ 1,038 | 97,566 | 232,595 | (1,553) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 40,824 | 40,824 | |||
Total other comprehensive income (loss), net of tax | (7,256) | (7,256) | |||
Cash dividends declared | 20,582 | (20,582) | |||
Share-based compensation | 1,880 | 1,880 | |||
Common stock issued for acquisition | 0 | ||||
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit, shares | 132,000 | ||||
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit | $ 1,767 | $ 9 | 1,758 | ||
Common stock, shares outstanding, ending balance at Dec. 31, 2014 | 16,746,363 | 16,746,000 | |||
Stockholders' equity, ending balance at Dec. 31, 2014 | $ 346,279 | $ 1,047 | 101,204 | 252,837 | (8,809) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 43,465 | 43,465 | |||
Total other comprehensive income (loss), net of tax | (890) | (890) | |||
Cash dividends declared | 23,228 | (23,228) | |||
Share-based compensation | 2,074 | 2,074 | |||
Common stock issued for acquisition, shares | 137,000 | ||||
Common stock issued for acquisition | 5,430 | $ 8 | 5,422 | ||
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit, shares | 137,000 | ||||
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit | $ 2,258 | $ 9 | 2,249 | ||
Common stock, shares outstanding, ending balance at Dec. 31, 2015 | 17,019,578 | 17,020,000 | |||
Stockholders' equity, ending balance at Dec. 31, 2015 | $ 375,388 | $ 1,064 | $ 110,949 | $ 273,074 | $ (9,699) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 43,465 | $ 40,824 | $ 36,153 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 1,050 | 1,850 | 2,400 |
Depreciation of premises and equipment | 3,381 | 3,133 | 3,283 |
Net amortization of premium and discount | 1,568 | 999 | 1,401 |
Amortization of intangibles | 904 | 644 | 680 |
Share–based compensation | 2,074 | 1,880 | 1,876 |
Deferred income tax expense | 1,820 | 1,847 | 2,267 |
Income from bank-owned life insurance | (1,982) | (1,846) | (1,850) |
Net gain on sale of business line | 0 | (6,265) | 0 |
Net gains on loan sales and commissions on loans originated for others | (9,826) | (6,802) | (13,085) |
Net impairment losses recognized in earnings | 0 | 0 | 3,489 |
Equity in (earnings) losses of unconsolidated subsidiaries | 293 | 276 | 107 |
Proceeds from sales of loans | 477,616 | 257,244 | 415,186 |
Loans originated for sale | (462,663) | (285,938) | (369,045) |
(Increase) decrease in other assets | (4,458) | (8,250) | 1,717 |
(Decrease) increase in other liabilities | (1,676) | 3,052 | (4,763) |
Net cash provided by operating activities | 51,566 | 2,648 | 79,816 |
Cash flows from investing activities: | |||
Purchases of mortgage-backed securities available for sale | (44,682) | (53,051) | (91,928) |
Purchases of other investment securities available for sale | (88,784) | (31,208) | (25,404) |
Proceeds from sale of other investment securities available for sale | 0 | 547 | 0 |
Maturities and principal payments of mortgage-backed securities available for sale | 50,083 | 76,703 | 77,644 |
Maturities and principal payments of other investment securities available for sale | 60,085 | 43,012 | 10,720 |
Maturities and principal payments of mortgage-backed securities held to maturity | 4,960 | 4,445 | 9,993 |
Remittance of Federal Home Loan Bank stock | 13,414 | 0 | 2,688 |
Net proceeds from the sale of business line | 0 | 7,205 | 0 |
Net increase in loans | (152,306) | (389,649) | (208,125) |
Proceeds from sale of portfolio loans | 0 | 1,200 | 49,588 |
Purchases of loans, including purchased interest | (3,085) | (8,119) | (10,645) |
Proceeds from the sale of property acquired through foreclosure or repossession | 1,580 | 1,769 | 2,588 |
Purchases of premises and equipment | (5,479) | (5,226) | (1,491) |
Purchases of bank-owned life insurance | 0 | (5,000) | 0 |
Repayment of investment in capital trust | 0 | 0 | 310 |
Cash used in business combination, net of cash acquired | (1,671) | 0 | 0 |
Net cash used in investing activities | (165,885) | (357,372) | (184,062) |
Cash flows from financing activities: | |||
Net increase in deposits | 179,437 | 249,497 | 192,690 |
Proceeds from Federal Home Loan Bank advances | 495,500 | 602,499 | 204,000 |
Repayment of Federal Home Loan Bank advances | (522,824) | (484,284) | (277,090) |
Proceeds from stock option exercises and issuance of other equity instruments | 1,563 | 1,189 | 3,681 |
Tax benefit from stock option exercises and other equity instruments | 694 | 578 | 570 |
Cash dividends paid | (22,770) | (19,722) | (16,628) |
Redemption of junior subordinated debentures | 0 | 0 | (10,310) |
Net cash provided by financing activities | 131,600 | 349,757 | 96,913 |
Net increase (decrease) in cash and cash equivalents | 17,281 | (4,967) | (7,333) |
Cash and cash equivalents at beginning of year | 80,350 | 85,317 | 92,650 |
Cash and cash equivalents at end of year | 97,631 | 80,350 | 85,317 |
Noncash Investing and Financing Activities: | |||
Loans charged off | 2,305 | 1,949 | 6,022 |
Loans transferred to property acquired through foreclosure or repossession | 1,206 | 1,961 | 1,471 |
Amount of Gain (Loss) Recognized in Income on Derivative | 0 | 0 | 0 |
In conjunction with the purchase acquisition detailed in Note 3 to the Consolidated Financial Statements, assets were acquired and liabilities were assumed as follows: | |||
Common stock issued for acquisition | 5,430 | 0 | 0 |
Fair value of assets acquired, net of cash acquired | 14,315 | 0 | 0 |
Fair value of liabilities assumed | 7,214 | 0 | 0 |
Supplemental Disclosures: | |||
Interest payments | 21,947 | 21,862 | 24,194 |
Income tax payments | $ 20,213 | $ 15,515 | $ 13,618 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation Washington Trust Bancorp, Inc. (the “Bancorp”) is a publicly-owned registered bank holding company and financial holding company. The Bancorp owns all of the outstanding common stock of The Washington Trust Company, 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. Certain previously reported amounts have been reclassified to conform to current year’s presentation. 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 valuation of goodwill and identifiable intangible assets, the assessment of investment securities for impairment and accounting for defined benefit pension plans. Short-term Investments Short-term investments consist of highly liquid investments with a maturity date of three months or less when purchased and are considered to be cash equivalents. The Corporation’s short-term investments may be comprised of overnight federal funds sold, securities purchased under resale agreements, money market mutual funds and U.S. Treasury bills. Securities Investments in debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity and carried at amortized cost. Management determines the appropriate classification of securities at the time of purchase. Investments not classified as held to maturity are classified as available for sale. Securities available for sale consist of debt securities that are available for sale to respond to changes in market interest rates, liquidity needs, changes in funding sources and other similar factors. These assets are specifically identified and are carried at fair value. Changes in fair value of available for sale securities, net of applicable income taxes, are reported as a separate component of shareholders’ equity. Washington Trust does not have a trading portfolio. Premiums and discounts are amortized and accreted over the term of the securities on a method that approximates the level yield method. The amortization and accretion is included in interest income on securities. Interest income is recognized when earned. Realized gains or losses from sales of securities are determined using the specific identification method. The fair values of securities may be based on either quoted market prices or third party pricing services. When the fair value of an investment security is less than its amortized cost basis, the Corporation assesses whether the decline in value is other-than-temporary. The Corporation considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for impairment, the severity and duration of the impairment, changes in the value subsequent to the reporting date, forecasted performance of the issuer, changes in the dividend or interest payment practices of the issuer, changes in the credit rating of the issuer or the specific security, and the general market condition in the geographic area or industry in which the issuer operates. In determining whether an other-than-temporary impairment has occurred for debt securities, the Corporation compares the present value of cash flows expected to be collected from the security with the amortized cost of the security. If the present value of expected cash flows is less than the amortized cost of the security, then the entire amortized cost of the security will not be recovered; that is, a credit loss exists, and an other-than-temporary impairment shall be considered to have occurred. The credit loss component of an other-than-temporary impairment write-down for debt securities is recorded in earnings while the remaining portion of the impairment loss is recognized, net of tax, in other comprehensive income provided that the Corporation does not intend to sell the underlying debt security and it is more-likely-than-not that the Corporation would not have to sell the debt security prior to recovery of the unrealized loss, which may be to maturity. If the Corporation intended to sell any securities with an unrealized loss or it is more-likely-than-not that the Corporation would be required to sell the investment securities, before recovery of their amortized cost basis, then the entire unrealized loss would be recorded in earnings. See Note 5 for further discussion on the Corporation’s investment securities portfolio. Federal Home Loan Bank Stock The Bank is a member of the Federal Home Loan Bank of Boston (“FHLBB”). The FHLBB is a cooperative that provides services, including funding in the form of advances, to its member banking institutions. As a requirement of membership, the Bank must own a minimum amount of FHLBB stock, calculated periodically based primarily on its level of borrowings from the FHLBB. No market exists for shares of the FHLBB and therefore, they are carried at par value. FHLBB stock may be redeemed at par value 5 years following termination of FHLBB membership, subject to limitations which may be imposed by the FHLBB or its regulator, the Federal Housing Finance Board, to maintain capital adequacy of the FHLBB. While the Corporation currently has no intentions to terminate its FHLBB membership, the ability to redeem its investment in FHLBB stock would be subject to the conditions imposed by the FHLBB. The Corporation monitors its investment to determine if impairment exists. Based on the capital adequacy and the liquidity position of the FHLBB, management believes there is no impairment related to the carrying amount of the Corporation’s FHLBB stock as of December 31, 2015 . Mortgage Banking Activities Mortgage Loans Held for Sale - Residential mortgage loans originated and intended for sale in the secondary market are classified as held for sale. The Corporation has elected the fair value option pursuant to Accounting Standards Codification (“ASC”) 825, “Financial Instruments” for certain closed loans intended for sale. ASC 825 allows for the irrevocable option to elect fair value accounting for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis that may otherwise not be required to be measured at fair value under other accounting standards. Washington Trust elected the fair value option for certain residential real estate mortgage loans held for sale pursuant to forward sale commitments in order to better match changes in fair values of the loans with changes in the fair value of the derivative forward loan sale contracts used to economically hedge them. Changes in the fair value of loans held for sale are recorded in earnings and are offset by changes in fair value relating to forward sale commitments and interest rate lock commitments. For residential mortgage loans intended for sale that are not accounted for under the fair value option, lower of cost or market (“LOCOM”) accounting is applied. Such loans are carried at lower of aggregate cost, net of unamortized deferred loan origination fees and costs, or fair value. Gains and losses on residential loan sales are recognized at the time of sale and included in mortgage banking revenues. Commissions received on mortgage loans brokered to various investors are recognized when received and included in mortgage banking revenues. Loan Servicing Rights - Rights to service mortgage loans for others are recognized as an asset, including rights acquired through both purchases and originations. Upon the sale of mortgage loans, a mortgage servicing asset is established, which represents the current estimated fair value based on the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, ancillary income, prepayment speeds, and default rates and losses. Capitalized loan servicing rights are included in other assets. Mortgage servicing rights are amortized as an offset to mortgage banking revenues over the period of estimated net servicing income. They are periodically evaluated for impairment based on their fair value. Impairment is measured on an aggregated basis by stratifying the rights based on homogeneous characteristics such as note rate and loan type. The fair value is estimated based on the present value of expected cash flows, incorporating assumptions for discount rate, prepayment speed and servicing cost. Any impairment is recognized through a valuation allowance and as a reduction to mortgage banking revenues. Loans Portfolio Loans - Loans held in the portfolio are stated at the principal amount outstanding, net of unamortized deferred loan origination fees and costs. Interest income is accrued on a level yield basis based on principal amounts outstanding. Deferred loan origination fees and costs are amortized as an adjustment to yield over the life of the related loans. Nonaccrual Loans - Loans, with the exception of certain well-secured loans that are in the process of collection, are placed on nonaccrual status and interest recognition is suspended when such loans are 90 days or more overdue with respect to principal and/or interest or sooner if considered appropriate by management. 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 is reversed against current period income. Subsequent interest payments received on nonaccrual loans are applied to the outstanding principal balance of the loan or recognized as interest income depending on management’s assessment of the ultimate collectability of the loan. Loans are removed from nonaccrual status when they have been current as to principal and interest for approximately 6 months, 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. Impaired Loans - Impaired loans are loans for which it is probable that the Corporation will not be able to collect all amounts due according to the contractual terms of the loan agreements and loans restructured in a troubled debt restructuring. Impairment is measured on a discounted cash flow method based upon the loan’s contractual effective interest rate, or at the loan’s observable market price, or if the loan is collateral dependent, at the fair value. 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. Interest income on nonaccrual impaired loans is recognized as described above under the caption “Nonaccrual Loans.” Impaired accruing loans consist of those troubled debt restructurings for which management has concluded that the collectability of the loan is not in doubt. Troubled Debt Restructured Loans - Loans are considered to be troubled debt restructurings when the Corporation has granted concessions to a borrower due to the borrower’s financial condition that it otherwise would not have considered. These concessions 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 of 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 collectability of the loan. Loans which are already on nonaccrual status at the time of the restructuring generally remain on nonaccrual status for approximately 6 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. Allowance for Loan Losses The allowance for loan losses is management’s best estimate of the risk of loss inherent in the loan portfolio as of the balance sheet date. The allowance is increased by provisions charged to earnings and by recoveries of amounts previously charged off, and is reduced by charge-offs on loans. Loan charge-offs are recognized when management believes the collectability of the principal balance outstanding is unlikely. Full or partial charge-offs on collateral dependent impaired loans are generally recognized when the collateral is deemed to be insufficient to support the carrying value of the loan. The level of the allowance is based on management’s ongoing review of the growth and composition of the loan portfolio, historical loss experience, estimated loss emergence period (the period from the event that triggers the eventual default until the actual loss is recognized with a charge-off), current economic conditions, analysis of asset quality and credit quality levels and trends, the performance of individual loans in relation to contract terms and other pertinent factors. A methodology is used to systematically measure the amount of estimated loan loss exposure inherent in the loan portfolio for the purposes of establishing a sufficient allowance for loan losses. The methodology includes: (1) the identification of loss allocations for individual loans deemed to be impaired and (2) the application of loss allocation factors for non-impaired loans based on historical loss experience and estimated loss emergence period, with adjustments for various exposures that management believes are not adequately represented by historical loss experience. 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. For loans that are collectively evaluated, we analyze historical loss experience by loan segment over an established look-back period deemed to be relevant to the inherent risk of loss in the portfolios. Loans are segmented by loan type, collateral type, delinquency status and loan risk rating, where applicable. These losses are adjusted to reflect the loss emergence period. These amounts are supplemented by certain qualitative risk factors reflecting management’s view of how losses may vary from those represented by historical loss rates. These qualitative risk factors include: 1) changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; 2) changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments; 3) changes in the nature and volume of the portfolio and in the terms of loans; 4) changes in the experience, ability, and depth of lending management and other relevant staff; 5) changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or rated loans; 6) changes in the quality of the institution’s loan review system; 7) changes in the value of underlying collateral for collateral dependent loans; 8) the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and 9) the effect of other external factors such as legal and regulatory requirements on the level of estimated credit losses in the institution’s existing portfolio. 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. 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 allowance is an estimate, and ultimate losses may vary from management’s estimate. Changes in the estimate are recorded in the results of operations in the period in which they become known, along with provisions for estimated losses incurred during that period. Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation. Depreciation for financial reporting purposes is calculated on the straight-line method over the estimated useful lives of assets. Expenditures for major additions and improvements are capitalized while the costs of current maintenance and repairs are charged to operating expenses. The estimated useful lives of premises and improvements range from 5 to 40 years. For furniture, fixtures and equipment, the estimated useful lives range from 3 to 20 years. Goodwill and Other Identifiable Intangible Assets The Corporation allocates the cost of an acquired entity to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. Other intangible assets identified in acquisitions consist of advisory contracts and non-compete agreements. The value attributed to these intangible assets was based on the time period over which they are expected to generate economic benefits. The excess of the purchase price for acquisitions over the fair value of the net assets acquired, including other intangible assets, was recorded as goodwill. Goodwill is not amortized but is tested for impairment at the reporting unit level, defined as the segment level, at least annually in the fourth quarter or more frequently whenever events or circumstances occur that indicate that it is more-likely-than-not that an impairment loss has occurred. In assessing impairment, the Corporation has the option to perform a qualitative analysis to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount. If, after assessing the totality of such events or circumstances, we determine that the fair value of a reporting unit is not less than its carrying amount, then we would not be required to perform a two-step impairment test. The Corporation has not opted to perform this qualitative analysis. Goodwill was tested for impairment using the two-step quantitative impairment analysis described below. Step 1 of the quantitative impairment analysis requires a comparison of each reporting unit’s fair value to its carrying value to identify potential impairment. Step 2 of the analysis is necessary only if a reporting unit’s carrying amount exceeds its fair value. Step 2 is a more detailed analysis, which involves measuring the excess of the fair value of the reporting unit, as determined in Step 1, over the aggregate fair value of the individual assets, liabilities, and identifiable intangibles as if the reporting unit was being acquired in a business combination. Goodwill impairment exists when a reporting unit’s carrying value of goodwill exceeds its implied fair value. Significant judgment is applied when goodwill is assessed for impairment. This judgment includes the selection of appropriate discount rates, the identification of relevant market comparables and the development of cash flow projections. The selection and weighting of the various fair value techniques may result in a higher or lower fair value. Judgment is applied in determining the weightings that are most representative of fair value. Other intangible assets with definite lives are tested for impairment whenever events or circumstances occur that indicate that the carrying amount may not be recoverable. If applicable, the Corporation tests each of the intangibles by comparing the carrying value of the intangible asset to the sum of undiscounted cash flows expected to be generated by the asset. If the carrying amount of the asset exceeded its undiscounted cash flows, then an impairment loss would be recognized for the amount by which the carrying amount exceeds its fair value. Impairment of Long - Lived Assets Other than Goodwill Long-lived assets are reviewed for impairment at least annually or whenever events or changes in business circumstances indicate that the remaining useful life may warrant revision or that the carrying amount of the long-lived asset may not be fully recoverable. If impairment is determined to exist, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. Property Acquired through Foreclosure or Repossession Property acquired through foreclosure or repossession is carried at the lower of cost or fair value less estimated costs to sell. Fair value of such assets is determined based on independent appraisals and other relevant factors. Any write-down to fair value at the time of foreclosure or repossession is charged to the allowance for loan losses. A valuation allowance is maintained for declines in market value and for estimated selling expenses. Increases to the valuation allowance, expenses associated with ownership of these properties, and gains and losses from their sale are included in foreclosed property costs. Loans that are substantively repossessed include only those loans for which the Corporation has obtained control of the collateral, but has not completed legal foreclosure proceedings. Bank-Owned Life Insurance The investment in BOLI represents the cash surrender value of life insurance policies on the lives of certain employees who have provided positive consent allowing the Bank to be the beneficiary of such policies. Increases in the cash value of the policies, as well as insurance proceeds received, are recorded in noninterest income, and are not subject to income taxes. The financial strength of the insurance carrier is reviewed prior to the purchase of BOLI and annually thereafter. Investment in Real Estate Limited Partnership Washington Trust has a 99.9% ownership interest in two real estate limited partnerships that renovate, own and operate two low-income housing complexes. Washington Trust neither actively participates nor has a controlling interest in these limited partnerships and accounts for its investments under the equity method of accounting. The carrying value of the investments is recorded in other assets on the Consolidated Balance Sheet. Net losses generated by the partnership are recorded as a reduction to Washington Trust’s investment and as a reduction of noninterest income in the Consolidated Statements of Income. Tax credits generated by the partnership are recorded as a reduction in the income tax provision in the year they are allowed for tax reporting purposes. The results of operations of the real estate limited partnerships are periodically reviewed to determine if the partnership generates sufficient operating cash flow to fund its current obligations. In addition, the current value of the underlying properties is compared to the outstanding debt obligations. If it is determined that the investment is permanently impaired, the carrying value will be written down to the estimated realizable value. Transfers and Servicing of Assets and Extinguishments of Liabilities The accounting for transfers and servicing of financial assets and extinguishments of liabilities is based on consistent application of a financial components approach that focuses on control. This approach distinguishes transfers of financial assets that are sales from transfers that are secured borrowings. After a transfer of financial assets, the Corporation recognizes all financial and servicing assets it controls and liabilities it has incurred and derecognizes financial assets it no longer controls and liabilities that have been extinguished. This financial components approach focuses on the assets and liabilities that exist after the transfer. Many of these assets and liabilities are components of financial assets that existed prior to the transfer. If a transfer does not meet the criteria for a sale, the transfer is accounted for as a secured borrowing with a pledge of collateral. Fee Revenue Wealth management revenues include asset-based revenues (trust and investment advisory fees and mutual fund fees) that are primarily accrued as earned based upon a percentage of asset values under administration. Also included in wealth management revenues are transaction-based revenues (financial planning fees, commissions and other service fees), which are recognized as revenue to the extent that services have been completed. Fee revenue from deposit service charges is generally recognized when earned. Pension Costs Pension benefits are accounted for using the net periodic benefit cost method, which recognizes the compensation cost of an employee’s pension benefit over that employee’s approximate service period. Pension benefit costs and benefit obligations incorporate various actuarial and other assumptions, including discount rates, mortality, rates of return on plan assets and compensation increases. Washington Trust evaluates these assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to so do. The effect of modifications to those assumptions is recorded in other comprehensive income (loss) and amortized to net periodic cost over future periods. Washington Trust believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. The funded status of defined benefit pension plans, measured as the difference between the fair value of plan assets and the projected benefit obligation, is recognized in the Consolidated Balance Sheet. The changes in the funded status of the defined benefit plans, including actuarial gains and losses and prior service costs and credits, are recognized in comprehensive income in the year in which the changes occur. Stock-Based Compensation Stock-based compensation plans provide for awards of stock options and other equity incentives, including nonvested share units and nonvested performance share units. Compensation expense for awards is recognized over the service period based on the fair value at the date of grant. The Corporation estimates grant date fair value for stock options using the Black-Scholes option-pricing model. Awards of nonvested share units and nonvested performance share units are valued at the fair market value of the Bancorp’s common stock as of the award date. Nonvested performance share unit compensation expense is based on the most recent performance assumption available and is adjusted as assumptions change. If the goals are not met, no compensation cost will be recognized and any recognized compensation costs will be reversed. Excess tax benefits (expenses) related to stock option exercises and issuance of other compensation-related equity instruments are reflected on the Consolidated Statements of Cash Flows as financing activity. Income Taxes Income tax expense is determined based on the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Corporation recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Corporation records interest related to unrecognized tax benefits in income tax expense. Penalties, if incurred, would be recognized as a component of income tax expense. Segment Reporting 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, operations and other support functions. Earnings Per Share (“EPS”) The Corporation utilizes the two-class method earnings allocation formula to determine earnings per share of each class of stock according to dividends and participation rights in undistributed earnings. 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 earning |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 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. In August 2015, Accounting Standards Update No. 2015-14, “Deferral of the Effective Date” (“ASU 2015-14”) was issued and delayed the effective date of ASU 2014-09 to annual and interim periods in fiscal years beginning after December 15, 2017. The Corporation is currently evaluating the impact that ASU 2014-09 will have on 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. Business Combinations - Topic 805 Accounting Standards Update No. 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments (“ASU 2015-16”), was issued in September 2015 and eliminates the requirement for an acquirer to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. ASU 2015-16 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. The adoption of ASU 2015-16 is not expected to have a material impact on the Corporation’s consolidated financial statements. Financial Instruments - Topic 825 Accounting Standards Update No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”), was issued in January 2016 and provides revised guidance related to the accounting for and reporting of financial instruments. Some of the main provisions include: requiring most equity securities to be reported at fair value with unrealized gains and losses reported in the income statement; requiring separate presentation of financial assets and liabilities by measurement category and form (i.e. securities or loans); clarifying that entities must assess valuation allowances on a deferred tax asset related to available for sale debt securities in combination with their other deferred tax assets; and eliminating the requirement to disclose the method and significant assumptions used to estimate fair value for financial instruments measured at amortized cost on the balance sheet. ASU 2016-01 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Corporation has not yet determined the effect of ASU 2016-01 on its ongoing financial reporting. Leases - Topic 842 Accounting Standards Update No. 2016-02, “Leases” (“ASU 2016-02”), was issued in February 2016 and provides revised guidance related to the accounting and reporting of leases. ASU 2016-02 requires lessees to recognize most leases on the balance sheet. The recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee will depend on its classification as a finance or operating lease. ASU 2016-02 requires a modified retrospective transition, with a number of practical expedients that entities may elect to apply. ASU 2016-02 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Early adoption is permitted. The Corporation has not yet determined the effect of ASU 2016-02 on its ongoing financial reporting. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition On August 1, 2015, Washington Trust completed the acquisition of Halsey Associates, Inc. (“Halsey”), a registered investment adviser firm located in New Haven, Connecticut. Halsey specializes in providing investment counseling services to high-net-worth families, corporations, foundations and endowment clients. The primary reason for the acquisition was to expand the geographic reach of Washington Trust’s wealth management business. The cost to acquire Halsey included $1.7 million in cash, $5.4 million in the form of 136,543 shares of Washington Trust Bancorp, Inc. common stock and a $2.9 million contingent consideration liability for the estimated present value of future earn-outs to be paid, based on the future revenue growth of the acquired business during the 5-year period following the acquisition. See Note 15 for additional disclosure on the contingent consideration liability. The following table presents the estimated fair value of identifiable assets acquired and liabilities assumed as of the date of acquisition, August 1, 2015: (Dollars in thousands) Fair Value Assets: Cash $10 Deferred tax assets 653 Goodwill 5,945 Identifiable intangible assets 7,515 Other assets 202 Total assets acquired $14,325 Liabilities: Contingent consideration liability $2,904 Deferred tax liabilities 2,803 Other liabilities 1,507 Total liabilities assumed $7,214 Net assets acquired $7,111 |
Cash and Due from Banks
Cash and Due from Banks | 12 Months Ended |
Dec. 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 $10.5 million and $8.0 million , respectively, at December 31, 2015 and 2014 and were included in cash and due from banks in the Consolidated Balance Sheets. As of December 31, 2015 and 2014 , cash and due from banks includes interest-bearing deposits in other banks of $48.2 million and $42.7 million , respectively. |
Securities
Securities | 12 Months Ended |
Dec. 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) December 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Securities Available for Sale: Obligations of U.S. government-sponsored enterprises $77,330 $73 ($388 ) $77,015 Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 228,908 6,398 (450 ) 234,856 Obligations of states and political subdivisions 35,353 727 — 36,080 Individual name issuer trust preferred debt securities 29,815 — (4,677 ) 25,138 Corporate bonds 1,970 5 (20 ) 1,955 Total securities available for sale $373,376 $7,203 ($5,535 ) $375,044 Held to Maturity: Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises $20,023 $493 $— $20,516 Total securities held to maturity 20,023 493 — 20,516 Total securities $393,399 $7,696 ($5,535 ) $395,560 (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 December 31, 2015 and 2014 , securities available for sale and held to maturity with a fair value of $346.1 million and $350.5 million , respectively, were pledged as collateral for FHLBB borrowings, potential borrowings with the FRB, certain public deposits and for other purposes. See Note 12 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) December 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 $— $15,100 $62,230 $— $77,330 Weighted average yield — % 1.42 % 2.34 % — % 2.16 % Mortgage-backed securities issued by U.S. government-sponsored enterprises: Amortized cost 38,526 101,233 60,694 28,455 228,908 Weighted average yield 3.53 3.08 2.63 1.25 2.81 Obligations of states and political subdivisions: Amortized cost 3,925 22,462 8,966 — 35,353 Weighted average yield 3.86 3.97 4.01 — 3.97 Individual name issuer trust preferred debt securities: Amortized cost — — — 29,815 29,815 Weighted average yield — — — 1.46 1.46 Corporate bonds: Amortized cost — 1,244 726 — 1,970 Weighted average yield — 2.10 2.88 — 2.39 Total debt securities available for sale: Amortized cost $42,451 $140,039 $132,616 $58,270 $373,376 Weighted average yield 3.56 % 3.04 % 2.58 % 1.36 % 2.67 % Fair value $43,532 $143,061 $134,119 $54,332 $375,044 Securities Held to Maturity: Mortgage-backed securities issued by U.S. government-sponsored enterprises: Amortized cost $2,576 $7,971 $6,267 $3,209 $20,023 Weighted average yield 3.11 % 3.03 % 2.64 % 0.75 % 2.55 % Fair value $2,640 $8,167 $6,421 $3,288 $20,516 Included in the above table were debt securities with an amortized cost balance of $139.1 million and a fair value of $134.7 million at December 31, 2015 that are callable at the discretion of the issuers. Final maturities of the callable securities range from 2 months to 21 years, with call features ranging from 1 month to 6 years. Other-Than-Temporary Impairment Assessment Washington Trust 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 December 31, 2015 # Fair Value Unrealized Losses # Fair Value Unrealized Losses # Fair Value Unrealized Losses Obligations of U.S. government-sponsored enterprises 4 $34,767 ($388 ) — $— $— 4 $34,767 ($388 ) Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 9 61,764 (450 ) — — — 9 61,764 (450 ) Individual name issuer trust preferred debt securities — — — 10 25,138 (4,677 ) 10 25,138 (4,677 ) Corporate bonds 3 1,235 (20 ) — — — 3 1,235 (20 ) Total temporarily impaired securities 16 $97,766 ($858 ) 10 $25,138 ($4,677 ) 26 $122,904 ($5,535 ) (Dollars in thousands) Less than 12 Months 12 Months or Longer Total December 31, 2014 # Fair Value Unrealized Losses # Fair Value Unrealized Losses # Fair Value Unrealized 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. Unrealized losses on temporarily impaired securities as of December 31, 2015 and December 31, 2014 were concentrated in variable rate trust preferred debt securities. Trust Preferred Debt Securities of Individual Name Issuers Included in debt securities in an unrealized loss position at December 31, 2015 were 10 trust preferred security holdings issued by 7 individual companies in the the banking sector. Management believes the unrealized loss position in these holdings was 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 trust preferred debt securities held in our portfolio continue to accrue and make payments as expected with no payment deferrals or defaults on the part of the issuers. As of December 31, 2015 , individual name issuers trust preferred debt securities with an amortized cost of $10.9 million and unrealized losses of $1.7 million were rated below investment grade by Standard & Poors, Inc. (“S&P”). Management reviewed the collectability 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 December 31, 2015 and the filing date of this report. Based on these analyses, management concluded that it expects to recover the entire amortized cost basis of these securities. Furthermore, Washington Trust does not intend to sell these securities and it is not more-likely-than-not that Washington Trust will be required to sell these securities before recovery of their cost basis, which may be maturity. Therefore, management does not consider these investments to be other-than-temporarily impaired at December 31, 2015 . U.S. Government Agency and U.S. Government-Sponsored Enterprise Securities, including Mortgage-Backed Securities The gross unrealized losses on these securities, were primarily attributable to relative changes in interest rates since the time of purchase. The contractual cash flows for these securities are guaranteed by U.S. government agencies and U.S. government-sponsored enterprises. Based on the assessment of these factors, management believes that the unrealized losses on these debt security holdings are a function of changes in investment spreads and interest rate movements and not changes in credit quality. Management expects to recover the entire amortized cost basis of these securities. Furthermore, the Corporation does not intend to sell these securities and it is not more-likely-than-not that Washington Trust will be required to sell these securities before recovery of their cost basis, which may be maturity. Therefore, management does not consider these investments to be other-than-temporarily impaired at December 31, 2015 . Credit-Related Impairment Losses Recognized on Debt Securities As of December 31, 2015 and December 31, 2014 , Washington Trust no longer had investments in two pooled trust preferred holdings in the form of collateralized debt obligations (“CDO”). During 2013, other-than-temporary impairment (“OTTI”) losses were recognized in earnings on these two pooled trust preferred debt securities. On March 22, 2013, the trustee for one of the pooled trust preferred securities issued a notice that liquidation of the CDO entity would take place at the direction of holders of the CDO tranches senior to the subordinate tranche interest held by Washington Trust. Accordingly, we recognized an other-than-temporary impairment charge in the first quarter of 2013 on the entire $2.8 million carrying value of the security, based on the expectation that proceeds from liquidation would be insufficient to satisfy the amount owed to the subordinate tranche. The liquidation was conducted in August 2013 and was insufficient to satisfy any amount owed to the subordinate tranche. In December 2013, Washington Trust changed its intent to hold its other CDO investment until recovery of its cost basis and subsequently sold this security in January 2014. As a result, Washington Trust recognized an other-than-temporary impairment loss of $717 thousand on this CDO in December 2013. The amortized cost and fair value of this CDO amounted to $547 thousand at December 31, 2013, which equaled the January 2014 sales price. The following table presents a rollforward of the cumulative credit-related impairment losses on debt securities: (Dollars in thousands) Years ended December 31, 2015 2014 2013 Balance at beginning of period $— $— $3,325 Credit-related impairment loss on debt securities for which an other-than-temporary impairment was not previously recognized — — — Additional increases to the amount of credit-related impairment loss on debt securities for which an other-than-temporary impairment was previously recognized — — 3,489 Reductions for securities for which a liquidation notice was received during the period — — (4,868 ) Reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost — — (1,946 ) Balance at end of period $— $— $— |
Loans
Loans | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Loans | Loans The following is a summary of loans: (Dollars in thousands) December 31, 2015 December 31, 2014 Amount % Amount % Commercial: Mortgages (1) $931,953 31 % $843,978 30 % Construction & development (2) 122,297 4 79,592 3 Commercial & industrial (3) 600,297 20 611,918 21 Total commercial 1,654,547 55 1,535,488 54 Residential real estate: Mortgages 984,437 33 948,731 33 Homeowner construction 29,118 1 36,684 1 Total residential real estate 1,013,555 34 985,415 34 Consumer: Home equity lines 255,565 8 242,480 8 Home equity loans 46,649 2 46,967 2 Other (4) 42,811 1 48,926 2 Total consumer 345,025 11 338,373 12 Total loans (5) $3,013,127 100 % $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) Loans to individuals secured by general aviation aircraft and other personal installment loans. (5) Includes net unamortized loan origination costs of $2.6 million and $2.1 million , respectively, and net unamortized premiums on purchased loans of $84 thousand and $94 thousand , respectively, at December 31, 2015 and 2014 . At December 31, 2015 and 2014 , there were $1.27 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 12 for additional disclosure regarding borrowings. Concentrations of Credit Risk A significant portion of our loan portfolio is concentrated among borrowers in southern New England and a substantial portion of the portfolio is collateralized by real estate in this area. The ability of single family residential and consumer borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity within the market area and real estate values. The ability of commercial borrowers to honor their repayment commitments is dependent on the general economy as well as the health of the real estate economic sector in the Corporation’s market area. Nonaccrual Loans Loans, with the exception of certain well-secured loans that are in the process of collection, are placed on nonaccrual status and interest recognition is suspended when such loans are 90 days or more overdue with respect to principal and/or interest, or sooner if considered appropriate by management. Well-secured loans are permitted to remain on accrual status provided that full collection of principal and interest is assured and the loan is in the process of collection. Loans are also placed on nonaccrual status when, in the opinion of management, full collection of principal and interest is doubtful. Interest previously accrued but not collected on such loans is reversed against current period income. Subsequent interest payments received on nonaccrual loans are applied to the outstanding principal balance of the loan or recognized as interest income depending on management’s assessment of the ultimate collectability of the loan. Loans are removed from nonaccrual status when they have been current as to principal and interest for approximately 6 months, the borrower has demonstrated an ability to comply with repayment terms, and when, in management’s opinion, the loans are considered to be fully collectible. The following is a summary of nonaccrual loans, segregated by class of loans: (Dollars in thousands) December 31, 2015 2014 Commercial: Mortgages $5,711 $5,315 Construction & development — — Commercial & industrial 3,018 1,969 Residential real estate: Mortgages 10,666 7,124 Homeowner construction — — Consumer: Home equity lines 528 1,217 Home equity loans 1,124 317 Other — 3 Total nonaccrual loans $21,047 $15,945 Accruing loans 90 days or more past due $— $— As of December 31, 2015 and 2014 , loans secured by one- to four-family residential property amounting to $2.6 million and $1.8 million , respectively, were in process of foreclosure. Nonaccrual loans of $7.4 million and $3.2 million , respectively, were current as to the payment of principal and interest as of December 31, 2015 and 2014 . There were no significant commitments to lend additional funds to borrowers whose loans were on nonaccrual status at December 31, 2015 . Interest income that would have been recognized had nonaccrual loans been current in accordance with their original terms was approximately $1.5 million , $1.3 million and $1.8 million in 2015 , 2014 and 2013 , respectively. Interest income included in the Consolidated Statements of Income on nonaccrual loans amounted to approximately $522 thousand , $455 thousand and $400 thousand , respectively, in 2015 , 2014 and 2013 . Past Due Loans Past due status is based on the contractual payment terms of the loan. The following tables present an aging analysis of past due loans, segregated by class of loans: (Dollars in thousands) Days Past Due December 31, 2015 30-59 60-89 Over 90 Total Past Due Current Total Loans Commercial: Mortgages $51 $— $4,504 $4,555 $927,398 $931,953 Construction & development — — — — 122,297 122,297 Commercial & industrial 405 9 48 462 599,835 600,297 Residential real estate: Mortgages 3,028 2,964 3,294 9,286 975,151 984,437 Homeowner construction — — — — 29,118 29,118 Consumer: Home equity lines 883 373 518 1,774 253,791 255,565 Home equity loans 748 490 222 1,460 45,189 46,649 Other 22 — — 22 42,789 42,811 Total loans $5,137 $3,836 $8,586 $17,559 $2,995,568 $3,013,127 (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 December 31, 2015 and 2014 , were nonaccrual loans of $13.6 million and $12.7 million , respectively. All loans 90 days or more past due at December 31, 2015 and 2014 were classified as nonaccrual. Impaired Loans Impaired loans are loans for which it is probable that the Corporation will not be able to collect all amounts due according to the contractual terms of the loan agreements and loans restructured in a troubled debt restructuring. In the third quarter of 2015, the Corporation redefined impaired loans to include nonaccrual loans and troubled debt restructured loans. In prior periods, the Corporation had defined impaired loans to include nonaccrual commercial loans, troubled debt restructured loans and certain other loans that were individually evaluated for impairment. The redefinition of impaired loans in 2015 resulted in $7.8 million of well-secured nonaccrual residential real estate mortgage loans and consumer loans being classified as impaired loans in the third quarter of 2015. The redefinition of impaired loans did not result in significant changes to the allowance for loan losses or to the allocation of loss exposure within the allowance for loans losses. The following is a summary of impaired loans: (Dollars in thousands) Recorded Investment (1) Unpaid Principal Related Allowance December 31, 2015 2014 2015 2014 2015 2014 No Related Allowance Recorded: Commercial: Mortgages $4,292 $432 $5,101 $432 $— $— Construction & development — — — — — — Commercial & industrial 1,849 1,047 1,869 1,076 — — Residential real estate: Mortgages 8,441 1,477 8,826 1,768 — — Homeowner construction — — — — — — Consumer: Home equity lines 6 — 64 — — — Home equity loans 530 — 539 — — — Other — — — — — — Subtotal 15,118 2,956 16,399 3,276 — — With Related Allowance Recorded: Commercial: Mortgages 10,873 14,585 10,855 14,564 1,633 927 Construction & development — — — — — — Commercial & industrial 2,024 1,878 2,248 2,437 771 177 Residential real estate: Mortgages 2,895 2,226 2,941 2,338 156 326 Homeowner construction — — — — — — Consumer: Home equity lines 522 250 522 250 2 141 Home equity loans 679 45 783 62 21 12 Other 145 112 144 114 — — Subtotal 17,138 19,096 17,493 19,765 2,583 1,583 Total impaired loans $32,256 $22,052 $33,892 $23,041 $2,583 $1,583 Total: Commercial $19,038 $17,942 $20,073 $18,509 $2,404 $1,104 Residential real estate 11,336 3,703 11,767 4,106 156 326 Consumer 1,882 407 2,052 426 23 153 Total impaired loans $32,256 $22,052 $33,892 $23,041 $2,583 $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 collectability 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 Years ended December 31, 2015 2014 2013 2015 2014 2013 Commercial: Mortgages $14,847 $22,971 $27,496 $327 $658 $630 Construction & development — — — — — — Commercial & industrial 3,415 2,499 6,029 130 126 190 Residential real estate: Mortgages 5,423 4,006 4,024 147 101 125 Homeowner construction — — — — — — Consumer: Home equity lines 228 97 200 1 2 7 Home equity loans 487 100 72 11 4 6 Other 210 119 146 10 8 9 Totals $24,610 $29,792 $37,967 $626 $899 $967 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 collectability of the loan. Loans which are already on nonaccrual status at the time of the restructuring generally remain on nonaccrual status for approximately 6 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 $18.5 million and $18.4 million , respectively, at December 31, 2015 and 2014 . These amounts included insignificant balances of accrued interest. The allowance for loan losses included specific reserves for these troubled debt restructurings of $1.8 million and $1.2 million , respectively, at December 31, 2015 and 2014 . As of December 31, 2015 , there were no significant commitments to lend additional funds to borrowers whose loans were 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 Years ended December 31, 2015 2014 2015 2014 2015 2014 Commercial: Mortgages 1 — $1,190 $— $1,190 $— Construction & development — — — — — — Commercial & industrial 3 12 584 1,191 584 1,191 Residential real estate: Mortgages 3 4 619 992 619 992 Homeowner construction — — — — — — Consumer: Home equity lines — — — — — — Home equity loans 1 — 70 — 70 — Other 1 — 35 — 35 — Totals 9 16 $2,498 $2,183 $2,498 $2,183 (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) Years ended December 31, 2015 2014 Below-market interest rate concession $335 $77 Payment deferral 903 791 Maturity / amortization concession 70 964 Combination (1) 1,190 351 Total $2,498 $2,183 (1) Loans included in this classification were modified with a combination of any two of the concessions listed in this table. In 2015 and 2014 , payment defaults on troubled debt restructured loans modified within the previous 12 months occurred on 2 loans totaling $290 thousand and 7 loans totaling $669 thousand , respectively. Credit Quality Indicators Commercial The Corporation utilizes an internal rating system to assign a risk rating 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 December 31, 2015 and 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 takes the risk rating into consideration along with other credit attributes in the establishment of an appropriate allowance for loan losses. See Note 7 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 in nonaccrual status when management determines there is uncertainty of collectability. 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 December 31, 2015 2014 2015 2014 2015 2014 Mortgages $914,774 $819,857 $3,035 $18,372 $14,144 $5,749 Construction & development 122,297 79,592 — — — — Commercial & industrial 577,036 592,206 12,012 16,311 11,249 3,401 Total commercial loans $1,614,107 $1,491,655 $15,047 $34,683 $25,393 $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. See Note 7 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 7 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 December 31, 2015 2014 2015 2014 Residential real estate: Accruing mortgages $973,771 $941,607 $— $— Nonaccrual mortgages 7,372 3,840 3,294 3,284 Homeowner construction 29,118 36,684 — — Total residential loans $1,010,261 $982,131 $3,294 $3,284 Consumer: Home equity lines $255,047 $241,639 $518 $841 Home equity loans 46,427 46,911 222 56 Other 42,811 48,926 — — Total consumer loans $344,285 $337,476 $740 $897 Loan Servicing Activities The following table presents an analysis of loan servicing rights: (Dollars in thousands) Loan Servicing Rights Valuation Allowance Total Balance at December 31, 2012 $1,275 ($165 ) $1,110 Loan servicing rights capitalized 1,897 — 1,897 Amortization (405 ) — (405 ) Decrease in impairment reserve — 96 96 Balance at December 31, 2013 2,767 (69 ) 2,698 Loan servicing rights capitalized 869 — 869 Amortization (647 ) — (647 ) Decrease in impairment reserve — 67 67 Balance at December 31, 2014 2,989 (2 ) 2,987 Loan servicing rights capitalized 1,406 — 1,406 Amortization (1,047 ) — (1,047 ) Decrease in impairment reserve — 1 1 Balance at December 31, 2015 $3,348 ($1 ) $3,347 The following table presents estimated aggregate amortization expense related to loan servicing assets: (Dollars in thousands) Years ending December 31: 2016 $1,008 2017 701 2018 491 2019 343 2020 241 Thereafter 564 Total estimated amortization expense $3,348 Mortgage loans and other loans sold to others are serviced on a fee basis under various agreements. Loans serviced for others are not included in the Consolidated Balance Sheets. The following table presents the balance of loans serviced for others, by type of loan: (Dollars in thousands) December 31, 2015 2014 Residential mortgages $458,629 $378,798 Commercial loans 109,173 90,484 Total $567,802 $469,282 |
Allowance for Loan Losses
Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is management’s best estimate of inherent risk of loss in the loan portfolio as of the balance sheet date. The 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: (1) the identification of loss allocations for individual loans deemed to be impaired and (2) the application of loss allocation factors for non-impaired loans based on historical loss experience and estimated loss emergence period, with adjustments for various exposures that management believes are not adequately represented by historical loss experience. Prior to December 31, 2015 , an unallocated allowance was maintained for measurement imprecision associated with impaired and nonaccrual loans. As a result of further enhancement and refinement of the allowance methodology to provide a more precise quantification of probable losses in the loan portfolio, management concluded that the potential risks anticipated by the unallocated allowance have been incorporated into the allocated component of the methodology, eliminating the need for the unallocated allowance in the fourth quarter of 2015 . The following table presents the activity in the allowance for loan losses for the year ended December 31, 2015 : (Dollars in thousands) Commercial Mortgages Construction C&I (1) Total Commercial Residential Consumer Unallocated Total Beginning Balance $8,202 $1,300 $7,987 $17,489 $5,430 $2,713 $2,391 $28,023 Charge-offs (809 ) — (671 ) (1,480 ) (207 ) (618 ) — (2,305 ) Recoveries 92 — 87 179 28 94 — 301 Provision 1,655 458 799 2,912 209 320 (2,391 ) 1,050 Ending Balance $9,140 $1,758 $8,202 $19,100 $5,460 $2,509 $— $27,069 (1) Commercial & industrial loans. The following table presents the activity in the allowance for loan losses for the year ended December 31, 2014 : (Dollars in thousands) Commercial Mortgages Construction C&I (1) Total Commercial Residential Consumer Unallocated Total Beginning Balance $8,022 $383 $7,835 $16,240 $6,450 $2,511 $2,685 $27,886 Charge-offs (977 ) — (558 ) (1,535 ) (132 ) (282 ) — (1,949 ) Recoveries 24 — 86 110 51 75 — 236 Provision 1,133 917 624 2,674 (939 ) 409 (294 ) 1,850 Ending Balance $8,202 $1,300 $7,987 $17,489 $5,430 $2,713 $2,391 $28,023 (1) Commercial & industrial loans. The following table presents the activity in the allowance for loan losses for the year ended December 31, 2013 : (Dollars in thousands) Commercial Mortgages Construction C&I (1) Total Commercial Residential Consumer Unallocated Total Beginning Balance $9,817 $224 $8,934 $18,975 $6,428 $2,684 $2,786 $30,873 Charge-offs (5,213 ) — (358 ) (5,571 ) (128 ) (323 ) — (6,022 ) Recoveries 380 — 153 533 3 99 — 635 Provision 3,038 159 (894 ) 2,303 147 51 (101 ) 2,400 Ending Balance $8,022 $383 $7,835 $16,240 $6,450 $2,511 $2,685 $27,886 (1) Commercial & industrial loans. The following table presents the Corporation’s loan portfolio and associated allowance for loan losses by portfolio segment and by impairment methodology. See disclosure above regarding the reclassification of the unallocated allowance in 2015. (Dollars in thousands) December 31, 2015 December 31, 2014 Related Allowance Related Allowance Loans Loans Loans Individually Evaluated For Impairment: Commercial: Mortgages $15,141 $1,633 $14,991 $927 Construction & development — — — — Commercial & industrial 3,871 771 2,921 177 Residential Real Estate 11,333 156 3,698 326 Consumer 1,881 23 409 153 Subtotal 32,226 2,583 22,019 1,583 Loans Collectively Evaluated For Impairment: Commercial: Mortgages 916,812 7,507 828,987 7,275 Construction & development 122,297 1,758 79,592 1,300 Commercial & industrial 596,426 7,431 608,997 7,810 Residential Real Estate 1,002,222 5,304 981,717 5,104 Consumer 343,144 2,486 337,964 2,560 Subtotal 2,980,901 24,486 2,837,257 24,049 Unallocated — — — 2,391 Total $3,013,127 $27,069 $2,859,276 $28,023 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment The following presents a summary of premises and equipment: (Dollars in thousands) December 31, 2015 2014 Land and improvements $6,020 $6,020 Premises and improvements 36,358 34,608 Furniture, fixtures and equipment 27,420 25,041 69,798 65,669 Less accumulated depreciation 40,205 38,174 Total premises and equipment, net $29,593 $27,495 Depreciation of premises and equipment amounted to $3.4 million , $3.1 million and $3.3 million , respectively, for the years ended December 31, 2015 , 2014 , and 2013 . |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles The following table presents the carrying value of goodwill at the reporting unit (or business segment) level: (Dollars in thousands) December 31, 2015 December 31, 2014 Commercial Banking Segment $22,591 $22,591 Wealth Management Services Segment 41,468 35,523 Total $64,059 $58,114 The balance of goodwill in the Commercial Banking segment at December 31, 2015 reflects goodwill that arose from the acquisition of First Financial Corp. in 2002. The balance of goodwill in the Wealth Management Services segment at December 31, 2015 reflects goodwill of $35.5 million that arose from the 2005 acquisition of Weston Financial and $5.9 million resulting from the 2015 acquisition of Halsey. Intangible assets consist of wealth management advisory contracts and non-compete agreements. The following table presents the components of intangible assets: (Dollars in thousands) December 31, 2015 December 31, 2014 Advisory Contracts Non-compete Agreements Advisory Contracts Non-compete Agreements Gross carrying amount $20,803 $369 $13,657 $— Accumulated amortization 9,610 102 8,808 — Net amount $11,193 $267 $4,849 $— The balance of intangible assets at December 31, 2015 includes wealth management advisory contracts resulting from the Weston Financial acquisition in 2005, as well as the addition of wealth management advisory contracts and non-compete agreements with gross carrying amounts of $7.1 million and $369 thousand , respectively, resulting from the acquisition of Halsey in 2015. The wealth management advisory contracts resulting from the Weston Financial acquisition are being amortized over a 20 -year life using a declining balance method, based on expected attrition for the current customer base derived from historical runoff data. The wealth management advisory contracts and non-compete agreements resulting from the acquisition of Halsey are being amortized on a straight-line basis over a 15 -year and 18 -month life, respectively. Amortization expense for the years ended December 31, 2015 , 2014 , and 2013 , amounted to $904 thousand , $644 thousand and $680 thousand , respectively. The following table presents estimated annual amortization expense for intangible assets at December 31, 2015 : (Dollars in thousands) Advisory Contracts Non-compete Agreements Total Years ending December 31, 2016 $1,038 $246 $1,284 2017 1,014 21 1,035 2018 979 — 979 2019 943 — 943 2020 914 — 914 2021 and thereafter 6,305 — 6,305 |
Income Tax Expense
Income Tax Expense | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense | Income Tax Expense The following table presents the components of income tax expense: (Dollars in thousands) Years ended December 31, 2015 2014 2013 Current tax expense: Federal $17,864 $16,286 $13,518 State 1,194 866 742 Total current tax expense 19,058 17,152 14,260 Deferred tax expense (benefit): Federal 2,003 1,820 2,300 State (183 ) 27 (33 ) Total deferred tax expense 1,820 1,847 2,267 Total income tax expense $20,878 $18,999 $16,527 Total income tax expense varies from the amount determined by applying the Federal income tax rate to income before income taxes. The following table presents the reasons for the differences: (Dollars in thousands) Years ended December 31, 2015 2014 2013 Tax expense at Federal statutory rate $22,520 $20,938 $18,438 (Decrease) increase in taxes resulting from: Tax-exempt income (1,604 ) (1,540 ) (1,408 ) Dividends received deduction (57 ) (29 ) — BOLI (694 ) (646 ) (648 ) Federal tax credits (364 ) (364 ) (364 ) Acquisition related expenses 318 — — State income tax expense, net of federal income tax benefit 658 581 461 Other 101 59 48 Total income tax expense $20,878 $18,999 $16,527 The following table presents the approximate tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities: (Dollars in thousands) December 31, 2015 2014 Deferred tax assets: Allowance for loan losses $10,015 $10,116 Defined benefit pension obligations 3,447 6,719 Deferred compensation 3,181 2,761 Deferred loan origination fees 2,001 1,822 Stock based compensation 1,772 1,676 Other 3,547 3,026 Deferred tax assets 23,963 26,120 Deferred tax liabilities: Net unrealized gains on securities available for sale (617 ) (2,373 ) Amortization of intangibles (4,240 ) (1,750 ) Deferred loan origination costs (5,089 ) (4,694 ) Loan servicing rights (1,238 ) (1,078 ) Other (1,009 ) (1,206 ) Deferred tax liabilities (12,193 ) (11,101 ) Net deferred tax asset $11,770 $15,019 The Corporation’s net deferred tax asset is included in other assets in the Consolidated Balance Sheets. Management has determined that a valuation allowance is not required for any of the deferred tax assets since it is more-likely-than-not that these assets will be realized primarily through future reversals of existing taxable temporary differences, carryback to taxable income in prior years or by offsetting projected future taxable income. The Corporation had no unrecognized tax benefits as of December 31, 2015 and 2014 . The Corporation files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The Corporation is no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2012 . |
Time Certificates of Deposit
Time Certificates of Deposit | 12 Months Ended |
Dec. 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 Years ending December 31: 2016 $329,764 0.67 % 2017 190,552 1.04 2018 93,974 1.30 2019 140,261 1.72 2020 79,278 1.63 2021 and thereafter 69 2.49 Balance at December 31, 2015 $833,898 1.09 % The following table presents the amount of time certificates of deposit in denominations of $100 thousand or more at December 31, 2015 , maturing during the periods indicated: (Dollars in thousands) January 1, 2016 to March 31, 2016 $82,083 April 1, 2016 to June 30, 2016 24,919 July 1, 2016 to December 31, 2016 31,621 January 1, 2017 and beyond 119,236 Balance at December 31, 2015 $257,859 Time certificates of deposit in denominations of $250 thousand or more totaled $45.1 million and $45.7 million , respectively, at December 31, 2015 and 2014 . |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Federal Home Loan Bank Advances Advances payable to FHLBB amounted to $379.0 million and $406.3 million , respectively, at December 31, 2015 and 2014 . The following table presents scheduled maturities and weighted average interest rates on FHLBB advances outstanding as of December 31, 2015 : (Dollars in thousands) Scheduled Maturity Weighted Average Rate 2016 $141,292 0.68 % 2017 37,575 2.52 2018 83,134 2.26 2019 42,661 3.79 2020 27,733 2.30 2021 and thereafter 46,578 4.16 Total $378,973 2.11 % In February 2016, FHLBB advances totaling $59.4 million were modified to lower interest rates and the maturities of these advances were extended. Original maturity dates ranging from 2017 to 2019 were modified to 2020 to 2023. The original weighted average interest rate was 3.48% and was revised to 3.01% . The table below presents the original terms as of December 31, 2015 , as well as revised terms associated with these FHLBB advances: (Dollars in thousands) Original Terms Revised Terms Scheduled Weighted Scheduled Weighted 2017 $10,000 3.29 % $— — % 2018 35,000 3.14 — — 2019 14,403 4.46 — — 2020 — — 5,000 2.71 2021 — — 20,000 2.63 2022 — — 25,830 3.06 2023 — — 8,573 3.90 Total $59,403 3.48 % $59,403 3.01 % As of December 31, 2015 and 2014 , the Bank had access to a $40.0 million unused line of credit with the FHLBB and also had remaining available borrowing capacity of $644.8 million and $569.4 million , respectively. The Bank pledges certain qualified investment securities and loans as collateral to the FHLBB. Advances payable to FHLBB include short-term advances with original maturity due dates of one year or less. The following table presents certain information concerning short-term FHLBB advances: (Dollars in thousands) As of and for the years ended December 31, 2015 2014 2013 Average amount outstanding during the period $155,874 $70,693 $13,901 Amount outstanding at end of period $107,500 $200,000 $— Highest month end balance during period $229,500 $200,000 $60,000 Weighted-average interest rate at end of period 0.55 % 0.37 % — % Weighted-average interest rate during the period 0.38 % 0.35 % 0.30 % Junior Subordinated Debentures Junior subordinated debentures amounted to $22.7 million at December 31, 2015 and 2014 . The Bancorp has sponsored the creation of WT Capital Trust I (“Trust I”) and WT Capital Trust II (“Trust II”), Delaware statutory trusts created for the sole purpose of issuing trust preferred securities and investing the proceeds in junior subordinated debentures of the Bancorp. The Bancorp is the owner of all of the common securities of the trusts. In accordance with GAAP, the trusts are treated as unconsolidated subsidiaries. The common stock investment in the statutory trusts is included in “Other Assets” in the Consolidated Balance Sheet. On August 29, 2005, Trust I issued $8.3 million of capital securities (“Trust I Capital Securities”) in a private placement of trust preferred securities. The Trust I Capital Securities mature in September 2035, are redeemable at the Bancorp’s option beginning after five years, and require quarterly distributions by Trust I to the holder of the Trust I Capital Securities, at a rate of 5.97% until September 15, 2010, and thereafter at a rate equal to the three-month LIBOR rate plus 1.45% . The Bancorp has guaranteed the Trust I Capital Securities and, to the extent not paid by Trust I, accrued and unpaid distributions on the Trust I Capital Securities, as well as the redemption price payable to the Trust I Capital Securities holders. The proceeds of the Trust I Capital Securities, along with proceeds from the issuance of common securities by Trust I to the Bancorp, were used to purchase $8.3 million of the Bancorp’s junior subordinated deferrable interest notes (the “Trust I Debentures”) and constitute the primary asset of Trust I. Like the Trust I Capital Securities, the Trust I Debentures bear interest at a rate of 5.97% until September 15, 2010, and thereafter at a rate equal to the three-month LIBOR rate plus 1.45% . The Trust I Debentures mature on September 15, 2035, but may be redeemed at par at the Bancorp’s option, subject to the approval of the applicable banking regulator to the extent required under applicable guidelines or policies, at any time on or after September 15, 2010, or upon the occurrence of certain special qualifying events. On August 29, 2005, Trust II issued $14.4 million of capital securities (“Trust II Capital Securities”) in a private placement of trust preferred securities. The Trust II Capital Securities mature in November 2035, are redeemable at the Bancorp’s option beginning after five years, and require quarterly distributions by Trust II to the holder of the Trust II Capital Securities, at a rate of 5.96% until November 23, 2010, and thereafter at a rate equal to the three-month LIBOR rate plus 1.45% . The Bancorp has guaranteed the Trust II Capital Securities and, to the extent not paid by Trust II, accrued and unpaid distributions on the Trust II Capital Securities, as well as the redemption price payable to the Trust II Capital Securities holders. The proceeds of the Trust II Capital Securities, along with proceeds from the issuance of common securities by Trust II to the Bancorp, were used to purchase $14.4 million of the Bancorp’s junior subordinated deferrable interest notes (the “Trust II Debentures”) and constitute the primary asset of Trust II. Like the Trust II Capital Securities, the Trust II Debentures bear interest at a rate of 5.96% until November 23, 2010, and thereafter at a rate equal to the three-month LIBOR rate plus 1.45% . The Trust II Debentures mature on November 23, 2035, but may be redeemed at par at the Bancorp’s option, subject to the approval of the applicable banking regulator to the extent required under applicable guidelines or policies, at any time on or after November 23, 2010, or upon the occurrence of certain special qualifying events. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity 2006 Stock Repurchase Plan In December 2006, the Bancorp’s Board of Directors approved the 2006 Stock Repurchase Plan authorizing the repurchase of up to 400,000 shares, or approximately 3% , of the Corporation’s common stock in open market transactions. This authority may be exercised from time to time and in such amounts as market conditions warrant, and subject to regulatory considerations. The repurchased shares would be held as treasury stock to be used for general corporate purposes. As of December 31, 2015 , a cumulative total of 185,400 shares have been repurchased, all of which were repurchased in 2007 at a total cost of $4.8 million . Shareholder Rights Plan In August 2006, the Bancorp’s Board of Directors adopted a shareholder rights plan, as set forth in the Shareholders Rights Agreement, dated August 17, 2006 (the “2006 Rights Agreement”). Pursuant to the terms of the 2006 Rights Agreement, the Bancorp declared a dividend distribution of one common share purchase right (a “Right”) for each outstanding share of common stock to shareholders of record on August 31, 2006. Such Rights also apply to new issuances of shares after that date. Each Right entitles the registered holder to purchase from the Corporation one share of its common stock at a price of $100 per share, subject to adjustment. The Rights are not exercisable or separable from the common stock until the earlier of 10 days after a person or group (an “Acquiring Person”) acquires beneficial ownership of 15% or more of the outstanding common shares or announces a tender offer to do so. The Rights, which expire on August 31, 2016, may be redeemed by the Bancorp at any time prior to the acquisition by an Acquiring Person of beneficial ownership of 15% or more of the common stock at a price of $.01 per Right. In the event that any party becomes an Acquiring Person, each holder of a Right, other than Rights owned by the Acquiring Person, will have the right to receive upon exercise that number of common shares having a market value of two times the purchase price of the Right. In the event that, at any time after any party becomes an Acquiring Person, the Corporation is acquired in a merger or other business combination transaction or 50% or more of its assets or earning power are sold, each holder of a Right will have the right to purchase that number of shares of the acquiring company having a market value of two times the purchase price of the Right. Dividends The primary source of liquidity for the Bancorp is dividends received from the Bank. The Bancorp and the Bank are regulated enterprises and their abilities to pay dividends are subject to regulatory review and restriction. Certain regulatory and statutory restrictions exist regarding dividends, loans, and advances from the Bank to the Bancorp. Generally, the Bank has the ability to pay dividends to the Bancorp subject to minimum regulatory capital requirements. The FDIC and the FRB have the authority to use their enforcement powers to prohibit a bank or bank holding company, respectively, from paying dividends if, in their opinion, the payment of dividends would constitute an unsafe or unsound practice. Under the most restrictive of these requirements, the Bank could have declared aggregate additional dividends of $194.3 million as of December 31, 2015 . Dividend Reinvestment Under the Amended and Restated Dividend Reinvestment and Stock Purchase Plan, 607,500 shares of the Corporation’s common stock were originally reserved to be issued for dividends reinvested and cash payments to the plan. Reserved Shares As of December 31, 2015 , a total of 2,292,840 common stock shares were reserved for issuance under the 2003 Plan, 2013 Plan and the Amended and Restated Dividend Reinvestment and Stock Purchase Plan. Regulatory Capital Requirements The Bancorp and the Bank are subject to various regulatory capital requirements administered by the FRB and the FDIC, respectively. Regulatory authorities can initiate certain mandatory actions if Bancorp or the Bank fail to meet minimum capital requirements, which could have a direct material effect on the Corporation’s financial statements. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. These quantitative measures, to ensure capital adequacy, require minimum amounts and ratios. As of January 1, 2015, the Bancorp and the Bank were required to comply with the Final Capital Rule that implemented the Basel III capital standards, which substantially revised the risk-based capital requirements applicable to bank holding companies and depository institutions. The Final Capital Rule, among other things: (i) introduced a new capital measure called common equity Tier 1; (ii) specified that Tier 1 capital consists of common equity Tier 1 and additional Tier 1 capital instruments meeting specified requirements; (iii) applied most adjustments to regulatory capital measures to common equity Tier 1 and not to the other components of capital, thus potentially requiring higher levels of common equity Tier 1 in order to meet minimum ratios; and (iv) expanded the scope of the adjustments from capital as compared to previous capital regulatory requirements. Capital levels at December 31, 2015 exceeded the regulatory minimum levels to be considered well-capitalized. The following table presents the Corporation’s and the Bank’s actual capital amounts and ratios, as well as the corresponding minimum and well capitalized regulatory amounts and ratios that were in effect during the respective periods: (Dollars in thousands) Actual For Capital Adequacy Purposes To Be “Well Capitalized” Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio December 31, 2015 Total Capital (to Risk-Weighted Assets): Corporation $367,443 12.58 % $233,739 8.00 % N/A N/A Bank 366,676 12.55 233,676 8.00 292,095 10.00 Tier 1 Capital (to Risk-Weighted Assets): Corporation 340,130 11.64 175,304 6.00 N/A N/A Bank 339,363 11.62 175,257 6.00 233,676 8.00 Common Equity Tier 1 Capital (to Risk-Weighted Assets): (1) Corporation 318,131 10.89 131,478 4.50 N/A N/A Bank 339,363 11.62 131,443 4.50 189,861 6.50 Tier 1 Capital (to Average Assets): (2) Corporation 340,130 9.37 145,191 4.00 N/A N/A Bank 339,363 9.36 145,103 4.00 181,378 5.00 December 31, 2014 Total Capital (to Risk-Weighted Assets): Corporation 343,934 12.56 219,149 8.00 N/A N/A Bank 339,268 12.39 219,075 8.00 273,844 10.00 Tier 1 Capital (to Risk-Weighted Assets): Corporation 315,575 11.52 109,574 4.00 N/A N/A Bank 310,909 11.35 109,537 4.00 164,306 6.00 Tier 1 Capital (to Average Assets): (2) Corporation 315,575 9.14 138,090 4.00 N/A N/A Bank 310,909 9.01 137,964 4.00 172,454 5.00 (1) New capital ratio effective January 1, 2015 under the Basel III capital requirements. (2) Leverage ratio. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 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 and caps are used from time to time as part of the Corporation’s interest rate risk management strategy. Interest rate 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. Interest rate caps represent options purchased by the Corporation to manage the interest rate paid throughout the term of the option contract. The credit risk associated with these transactions is the risk of default by the counterparty. To minimize this risk, the Corporation enters into interest rate agreements only with highly rated counterparties that management believes to be creditworthy. The notional amounts of these agreements do not represent amounts exchanged by the parties and, thus, are not a measure of the potential loss exposure. Cash Flow Hedging Instruments As of December 31, 2014 , the Bancorp had two interest rate swap contracts designated as cash flow hedges to hedge the interest rate risk associated with $22.7 million of variable rate junior subordinated debentures. During 2015 , both interest rate swap contracts matured. In the fourth quarter of 2015 , the Bancorp executed two interest rate caps designated as cash flow hedges to hedge the interest rate risk associated with the $22.7 million of variable rate junior subordinated debentures. The Corporation paid a premium totaling $257 thousand to obtain the right to receive the difference between 3-month LIBOR and a 4.5% strike for both of the interest rate caps. The caps mature in the fourth quarter of 2020. The effective portion of the changes in fair value of derivatives designated as cash flow hedges is recorded in other comprehensive income (loss) 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. Loan Related Derivative Contracts Interest Rate Swap Contracts with Customers 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 allows them to convert floating-rate loan payments to fixed-rate loan payments. When we enter into an interest rate swap contract with a commercial loan borrower, we simultaneously enter into a “mirror” swap contract with a third party. The third party exchanges the client’s fixed-rate loan payments for floating-rate loan payments. We retain the risk that is associated with the potential failure of counterparties and the risk inherent in originating loans. As of December 31, 2015 and 2014 , Washington Trust had interest rate swap contracts with commercial loan borrowers with notional amounts of $302.1 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 During 2015, the Corporation entered into risk participation agreements (“RPAs”) with other banks participating in commercial loan arrangements. Participating banks guarantee the performance on borrower-related interest rate swap contracts. RPAs are derivative financial instruments and are recorded at fair value. These derivatives are not designated as hedges and therefore, changes in fair value are recognized in earnings. Under a risk participation-out agreement, a derivative asset, the Corporation participates out a portion of the credit risk associated with the interest rate swap position executed with the commercial borrower, for a fee paid to the participating bank. Under a risk participation-in agreement, a derivative liability, the Corporation assumes, or participates in, a portion of the credit risk associated with the interest rate swap position with the commercial borrower, for a fee received from the other bank. As of December 31, 2015 , the notional amounts of the risk participation-out agreements and risk participation-in agreements were $25.3 million and $21.5 million , respectively. Loan Commitments Interest rate lock commitments are extended to borrowers that relate to the origination of residential real estate mortgage loans held for sale. To mitigate the interest rate risk inherent in these rate locks, as well as closed residential real estate mortgage loans held for sale, 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 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 December 31, Balance Sheet Location 2015 2014 Balance Sheet Location 2015 2014 Derivatives Designated as Cash Flow Hedging Instruments: Interest rate risk management contract: Interest rate swap contracts Other assets $— $— Other liabilities $— $497 Interest rate caps Other assets 187 — Other liabilities — — Derivatives not Designated as Hedging Instruments: Forward loan commitments: Interest rate lock commitments Other assets 1,220 1,212 Other liabilities — 20 Commitments to sell mortgage loans Other assets — 13 Other liabilities 2,012 2,028 Loan related derivative contracts: Interest rate swaps with customers Other assets 8,027 4,554 Other liabilities — 23 Mirror swaps with counterparties Other assets — 28 Other liabilities 8,266 4,748 Risk participation agreements Other assets 56 — Other liabilities 69 — Total $9,490 $5,807 $10,347 $7,316 The following tables present the effect of derivative instruments in the Corporations’ 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) Years ended December 31, 2015 2014 2013 2015 2014 2013 Derivatives Designated as Cash Flow Hedging Instruments: Interest rate risk management contracts: Interest rate swap contracts $288 $331 $388 Interest Expense $— $— $— Interest rate caps (44 ) — — Interest Expense — — — Total $244 $331 $388 $— $— $— (Dollars in thousands) Amount of Gain (Loss) Recognized in Income on Derivative Years ended December 31, Statement of Income Location 2015 2014 2013 Derivatives not Designated as Hedging Instruments: Forward loan commitments: Interest rate lock commitments Mortgage banking revenues $28 $800 ($2,121 ) Commitments to sell mortgage loans Mortgage banking revenues 3 (1,442 ) 3,618 Loan related derivative contracts: Interest rate swaps with customers Loan related derivative income 7,569 4,989 396 Mirror swaps with counterparties Loan related derivative income (4,904 ) (3,853 ) 555 Risk participation agreements Loan related derivative income (224 ) — — Total $2,472 $494 $2,448 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 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 December 31, 2015 and 2014 , securities available for sale, certain residential real estate mortgage loans held for sale, derivatives and the contingent consideration liability 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 use to economically hedge them. The aggregate principal amount of the residential real estate mortgage loans held for sale recorded at fair value was $33.2 million and $29.5 million , respectively, at December 31, 2015 and 2014 . The aggregate fair value of these loans as of the same dates was $34.0 million and $30.3 million , respectively. As of December 31, 2015 and 2014 , the aggregate fair value of residential real estate mortgage loans held for sale exceeded the aggregate principal amount by $731 thousand and $779 thousand , respectively. There were no residential real estate mortgage loans held for sale 90 days or more past due as of December 31, 2015 and 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 mortgage banking revenues in the Consolidated Statements of Income. (Dollars in thousands) Years ended December 31, 2015 2014 2013 Mortgage loans held for sale ($48 ) $598 ($1,505 ) Interest rate lock commitments 28 800 (2,121 ) Commitments to sell 3 (1,442 ) 3,618 Total changes in fair value ($17 ) ($44 ) ($8 ) Valuation Techniques 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 December 31, 2015 and 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, individual name issuer 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 December 31, 2015 and 2014 . Mortgage Loans Held for Sale The fair value of mortgage loans held for sale is estimated based on current market prices for similar loans in the secondary market and therefore are classified as Level 2 assets. 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. Derivatives Interest rate swap and cap 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. The Corporation also 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. Fair value measurements of forward loan commitments (interest rate lock commitments and commitments to sell residential real estate mortgages) are estimated based on current market prices for similar assets in the secondary market and therefore are classified as Level 2 assets. Contingent Consideration Liability A contingent consideration liability with a fair value of $2.9 million was recognized upon the completion of the Halsey acquisition on August 1, 2015. The liability represents the estimated present value of future earn-outs to be paid based on the future revenue growth of the acquired business during the 5 -year period following the acquisition. The liability's valuation is based upon unobservable inputs, therefore, the contingent liability is classified within Level 3 of the fair value hierarchy. The unobservable inputs include probability estimates regarding the likelihood of achieving revenue growth targets and the discount rates utilized in the discounted cash flow calculations applied to the estimated earn-outs to be paid. The discount rates used ranged from 3% to 4% . The fair value of the contingency represents the estimated price to transfer the liability between market participants at the measurement date under current market conditions. 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 (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs (Level 3) December 31, 2015 Assets: Securities available for sale: Obligations of U.S. government-sponsored enterprises $77,015 $— $77,015 $— Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 234,856 — 234,856 — Obligations of states and political subdivisions 36,080 — 36,080 — Individual name issuer trust preferred debt securities 25,138 — 25,138 — Corporate bonds 1,955 — 1,955 — Mortgage loans held for sale 33,969 — 33,969 — Derivative assets (1) 9,490 — 9,490 — Total assets at fair value on a recurring basis $418,503 $— $418,503 $— Liabilities: Derivative liabilities (2) $10,347 $— $10,347 $— Contingent Consideration Liability (3) 2,945 — — 2,945 Total liabilities at fair value on a recurring basis $13,292 $— $10,347 $2,945 (1) Derivative assets include interest rate risk management agreements, interest rate swap contracts with customers, risk participation-out agreements and forward loan commitments and are included in other assets in the Consolidated Balance Sheets. (2) Derivative liabilities include mirror swaps with counterparties, risk participation-in agreements and forward loan commitments and are included in other liabilities in the Consolidated Balance Sheets. (3) The contingent consideration liability is included in other liabilities in the Consolidated Balance Sheets. (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs (Level 3) December 31, 2014 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 swap 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 agreements 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. There were no transfers in and/or out of Level 1, 2 or 3 during the years ended December 31, 2015 and 2014 . Items Recorded at Fair Value on a Nonrecurring Basis The following table presents the carrying value of assets held at December 31, 2015 , which were written down to fair value during the year ended December 31, 2015 : (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Collateral dependent impaired loans $10,545 $— $— $10,545 Property acquired through foreclosure or repossession 270 — — 270 Total assets at fair value on a nonrecurring basis $10,815 $— $— $10,815 The allowance for loan losses on the collateral dependent impaired loans amounted to $2.4 million at December 31, 2015 . The following table summarizes the carrying value of 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 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 the 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) December 31, 2015 Collateral dependent impaired loans $10,545 Appraisals of collateral Discount for costs to sell 0% - 20% (2%) Property acquired through foreclosure or repossession 270 Appraisals of collateral Discount for costs to sell 12% Appraisal adjustments (1) 32% (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. FHLB advances are categorized as Level 2. Junior Subordinated Debentures The fair value of the junior subordinated debentures is estimated using rates currently available to the Corporation for debentures with similar terms and maturities. Junior subordinated debentures are categorized as Level 2. The following tables present the carrying amount, estimated fair value and placement in the fair value hierarchy of the Corporation’s financial instruments . 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) Carrying Amount Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs (Level 3) December 31, 2015 Financial Assets: Securities held to maturity $20,023 $20,516 $— $20,516 $— Loans, net of allowance for loan losses 2,986,058 3,004,782 — — 3,004,782 Financial Liabilities: Time deposits $833,898 $834,574 $— $834,574 $— FHLBB advances 378,973 388,275 — 388,275 — Junior subordinated debentures 22,681 16,468 — 16,468 — (Dollars in thousands) Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs (Level 3) December 31, 2014 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 — |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefits | Employee Benefits Defined Benefit Pension Plans The Corporation maintains a tax-qualified defined benefit pension plan for the benefit of certain eligible employees who were hired prior to October 1, 2007. The Corporation also has non-qualified retirement plans to provide supplemental retirement benefits to certain employees, as defined in the plans. The defined benefit pension plans were previously amended to freeze benefit accruals after a 10 -year transition period ending in December 2023. The defined benefit pension plan is funded on a current basis, in compliance with the requirements of ERISA. The non-qualified retirement plans provide for the designation of assets in rabbi trusts. Securities available for sale and other short-term investments designated for this purpose, with the carrying value of $12.3 million and $10.4 million are included in the Consolidated Balance Sheets at December 31, 2015 and 2014 , respectively. Pension benefit costs and benefit obligations incorporate various actuarial and other assumptions, including discount rates, mortality, rates of return on plan assets and compensation increases. Washington Trust evaluates these assumptions annually. In 2015 and prior, a single weighted-average discount rate was used to calculate interest and service cost components of net periodic benefit cost. Washington Trust plans to utilize a "spot rate approach" in the calculation of interest and service cost for 2016 and beyond. The spot rate approach applies separate discount rates for each projected benefit payment in the calculation of interest and service cost. The new approach provides a more precise measurement of service and interest cost by improving the correlation between projected benefit cash flows and their corresponding spot rates. This change does not affect the measurement of the Corporation’s defined benefit obligations and is accounted for as a change in accounting estimate, which will be applied prospectively. The following table presents the plans’ projected benefit obligations, fair value of plan assets and unfunded status: (Dollars in thousands) Qualified Pension Plan Non-Qualified Retirement Plans At December 31, 2015 2014 2015 2014 Change in Benefit Obligation: Benefit obligation at beginning of period $73,149 $61,162 $13,097 $10,784 Service cost 2,459 2,152 78 46 Interest cost 2,928 2,891 490 478 Actuarial (gain) loss (5,410 ) 11,081 88 2,546 Benefits paid (5,430 ) (3,981 ) (738 ) (757 ) Administrative expenses (146 ) (156 ) — — Benefit obligation at end of period 67,550 73,149 13,015 13,097 Change in Plan Assets: Fair value of plan assets at beginning of period 67,613 62,060 — — Actual return on plan assets 673 3,690 — — Employer contributions 3,000 6,000 738 757 Benefits paid (5,430 ) (3,981 ) (738 ) (757 ) Administrative expenses (146 ) (156 ) — — Fair value of plan assets at end of period 65,710 67,613 — — Unfunded status at end of period ($1,840 ) ($5,536 ) ($13,015 ) ($13,097 ) The unfunded status of the qualified pension plan and non-qualified retirement plans has been recognized in other liabilities in the Consolidated Balance Sheets at December 31, 2015 and 2014 . The following table presents components of accumulated other comprehensive income related to the qualified pension plan and non-qualified retirement plans, on a pre-tax basis: (Dollars in thousands) Qualified Pension Plan Non-Qualified Retirement Plans At December 31, 2015 2014 2015 2014 Net actuarial loss $12,688 $15,504 $4,392 $4,548 Prior service credit (84 ) (107 ) (2 ) (3 ) Total pre-tax amounts recognized in accumulated other comprehensive income $12,604 $15,397 $4,390 $4,545 The accumulated benefit obligation for the qualified pension plan was $60.3 million and $64.0 million at December 31, 2015 and 2014 , respectively. The accumulated benefit obligation for the non-qualified retirement plans amounted to $11.7 million and $12.1 million at December 31, 2015 and 2014 , respectively. The following table presents components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss), on a pre-tax basis: (Dollars in thousands) Qualified Pension Plan Non-Qualified Retirement Plans Years ended December 31, 2015 2014 2013 2015 2014 2013 Net Periodic Benefit Cost: Service cost $2,459 $2,152 $2,720 $78 $46 $181 Interest cost 2,928 2,891 2,883 490 478 462 Expected return on plan assets (4,515 ) (4,063 ) (3,725 ) — — — Amortization of prior service credit (23 ) (23 ) (30 ) (1 ) (1 ) (1 ) Recognized net actuarial loss 1,249 461 1,321 245 70 175 Curtailments — — (61 ) — — (1 ) Net periodic benefit cost 2,098 1,418 3,108 812 593 816 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (on a pre-tax basis): Net (gain) loss (2,816 ) 10,993 (14,572 ) (156 ) 2,476 (1,506 ) Prior service cost 23 23 30 1 1 1 Curtailments — — (4,000 ) — — (359 ) Recognized in other comprehensive (loss) income (2,793 ) 11,016 (18,542 ) (155 ) 2,477 (1,864 ) Total recognized in net periodic benefit cost and other comprehensive (loss) income ($695 ) $12,434 ($15,434 ) $657 $3,070 ($1,048 ) For the qualified pension plan, an estimated prior service credit of $23 thousand and net losses of $828 thousand will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost during the year 2016 . For the non-qualified retirement plans, an estimated prior service credit of $1 thousand and net losses of $247 thousand will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost during the year 2016 . Assumptions The following table presents the measurement date and weighted-average assumptions used to determine benefit obligations at December 31, 2015 and 2014 : Qualified Pension Plan Non-Qualified Retirement Plans 2015 2014 2015 2014 Measurement date Dec 31, 2015 Dec 31, 2014 Dec 31, 2015 Dec 31, 2014 Discount rate 4.480% 4.125% 4.200% 3.900% Rate of compensation increase 3.750 3.750 3.750 3.750 The following table presents the measurement date and weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31, 2015 , 2014 and 2013 : Qualified Pension Plan Non-Qualified Retirement Plans 2015 2014 2013 2015 2014 2013 Measurement date Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Discount rate 4.125% 4.875% 4.125% 3.900% 4.600% 3.800% Expected long-term return on plan assets 7.250 7.250 7.250 — — — Rate of compensation increase 3.750 3.750 3.750 3.750 3.750 3.750 The expected long-term rate of return on plan assets is based on what the Corporation believes is realistically achievable based on the types of assets held by the plan and the plan’s investment practices. The assumption is updated annually, taking into account the asset allocation, historical asset return trends on the types of assets held and the current and expected economic conditions. Future decreases in the long-term rate of return assumption on plan assets would increase pension costs and, in general, may increase the requirement to make funding contributions to the plans. The discount rate assumption for defined benefit pension plans is reset on the measurement date. Discount rates are selected for each plan by matching expected future benefit payments stream to a yield curve based on a selection of high- quality fixed-income debt securities. Future decreases in discount rates would increase the present value of pension obligations and increase our pension costs. Plan Assets The following tables present the fair values of the qualified pension plan’s assets: (Dollars in thousands) Fair Value Measurements Using Assets at Fair Value December 31, 2015 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $1,598 $— $— $1,598 Obligations of U.S. government agencies and U.S. government-sponsored enterprises — 3,306 — 3,306 Obligations of states and political subdivisions — 3,438 — 3,438 Corporate bonds — 12,955 — 12,955 Common stocks 29,433 — — 29,433 Mutual funds 14,980 — — 14,980 Total plan assets $46,011 $19,699 $— $65,710 (Dollars in thousands) Fair Value Measurements Using Assets at Fair Value December 31, 2014 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $637 $— $— $637 Obligations of U.S. government agencies and U.S. government-sponsored enterprises — 4,197 — 4,197 Obligations of states and political subdivisions — 2,953 — 2,953 Corporate bonds — 13,162 — 13,162 Common stocks 31,172 — — 31,172 Mutual funds 15,492 — — 15,492 Total plan assets $47,301 $20,312 $— $67,613 The qualified pension plan uses fair value measurements to record fair value adjustments to the securities held in its investment portfolio. When available, the qualified pension plan uses quoted market prices to determine the fair value of securities; such items are classified as Level 1. This category includes cash equivalents, common stocks and mutual funds which are exchange-traded. Level 2 securities in the qualified pension plan include debt securities with quoted prices, which are traded less frequently than exchange-traded instruments, whose values are determined using matrix pricing with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category includes obligations of U.S. government agencies and U.S. government-sponsored enterprises, obligations of states and political subdivisions and corporate bonds. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities may be classified as Level 3. As of December 31, 2015 and 2014 , the qualified pension plan did not have any securities in the Level 3 category. The following table present the asset allocations of the qualified pension plan, by asset category: December 31, 2015 2014 Asset Category: Equity securities 63.4 % 61.6 % Fixed income securities 34.6 37.8 Cash and cash equivalents 2.0 0.6 Total 100.0 % 100.0 % The assets of the qualified defined benefit pension plan trust (the “Pension Trust”) are managed to balance the needs of cash flow requirements and long-term rate of return. Cash inflow is typically comprised of investment income from portfolio holdings and Bank contributions, while cash outflow is for the purpose of paying plan benefits and certain plan expenses. As early as possible each year, the trustee is advised of the projected schedule of employer contributions and estimations of benefit payments. As a general rule, the trustee shall invest the funds so as to produce sufficient income to cover benefit payments and maintain a funded status that exceeds the regulatory requirements for tax-qualified defined benefit plans. The investment philosophy used for the Pension Trust emphasizes consistency of results over an extended market cycle, while reducing the impact of the volatility of the security markets upon investment results. The assets of the Pension Trust should be protected by substantial diversification of investments, providing exposure to a wide range of quality investment opportunities in various asset classes, with a high degree of liquidity. The investment objective with respect to the Pension Trust assets is to provide capital appreciation with a current income component. At any time, the portfolio will typically be invested in the following ranges: 50% to 70% in equities; 30% to 50% in fixed income; and 0% to 10% in cash and cash equivalents. The trustee investment manager will have authorization to invest within these ranges, making decisions based upon market conditions. Fixed income bond investments should be limited to those in the top four categories used by the major credit rating agencies. High yield bond funds may be used to provide exposure to this asset class as a diversification tool provided they do not exceed 10% of the portfolio. In order to reduce the volatility of the annual rate of return of the bond portfolio, attention will be given to the maturity structure of the portfolio in the light of money market conditions and interest rate forecasts. The assets of the Pension Trust will typically have a laddered maturity structure, avoiding large concentrations in any single year. Equity holdings provide opportunities for dividend and capital appreciation returns. Holdings will be appropriately diversified by maintaining broad exposure to large-, mid- and small-cap stocks as well as international equities. Concentration in small-cap, mid-cap and international equities is limited to no more than 20% , 20% and 30% of the equity portfolio, respectively. Investment selection and mix of equity holdings should be influenced by forecasts of economic activity, corporate profits and allocation among different segments of the economy while ensuring efficient diversification. The fair value of equity securities of any one issuer will not be permitted to exceed 10% of the total fair value of equity holdings of the Pension Trust. Investments in publicly traded real estate investment trust securities and low-risk derivatives securities such as callable securities, floating rate notes, mortgage- backed securities and treasury inflation protected securities, are permitted. Cash Flows Contributions The Internal Revenue Code permits flexibility in plan contributions so that normally a range of contributions is possible. The Corporation’s current funding policy has been generally to contribute the minimum required contribution and additional amounts up to the maximum deductible contribution. The Corporation expects to contribute $8.5 million to the qualified pension plan in 2016 . In addition, the Corporation expects to contribute $788 thousand in benefit payments to the non-qualified retirement plans in 2016 . Estimated Future Benefit Payments The following table presents the benefit payments, which reflect expected future service, as appropriate, expected to be paid: (Dollars in thousands) Qualified Pension Plan Non-Qualified Plans 2016 $4,401 $788 2017 2,992 782 2018 3,222 775 2019 3,032 804 2020 3,896 896 Years 2021 - 2025 21,768 4,304 401(k) Plan The Corporation’s 401(k) Plan provides a specified match of employee contributions for substantially all employees. In addition, substantially all employees hired after September 30, 2007, who are ineligible for participation in the qualified defined benefit pension plan, receive a non-elective employer contribution of 4% . Total employer matching contributions under this plan amounted to $1.8 million , $1.8 million and $1.6 million in 2015 , 2014 and 2013 , respectively. Other Incentive Plans The Corporation maintains several non-qualified incentive compensation plans. Substantially all employees participate in one of the incentive compensation plans. Incentive plans provide for annual or more frequent payments based on individual, business line and/or corporate performance targets (measured in terms of the Corporation’s net income, earnings per share and return on equity). Total incentive based compensation amounted to $14.3 million , $13.8 million and $13.4 million in 2015 , 2014 and 2013 , respectively. In general, the terms of incentive plans are subject to annual renewal and may be terminated at any time by the Compensation Committee of the Board of Directors. Deferred Compensation Plan The Amended and Restated Nonqualified Deferred Compensation Plan provides supplemental retirement and tax benefits to directors and certain officers. The plan is funded primarily through pre-tax contributions made by the participants. The assets and liabilities of the Deferred Compensation Plan are recorded at fair value in the Corporation’s Consolidated Balance Sheets. The participants in the plan bear the risk of market fluctuations of the underlying assets. The accrued liability related to this plan amounted to $8.6 million and $7.7 million at December 31, 2015 and 2014 , respectively, and is included in other liabilities on the accompanying Consolidated Balance Sheets. The corresponding invested assets are reported in other assets. |
Share-Based Compensation Arrang
Share-Based Compensation Arrangements | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Arrangements | Share-Based Compensation Arrangements Washington Trust’s share-based compensation plans are described below. The 2013 Stock Option and Incentive Plan (the “2013 Plan”) was approved by shareholders on April 23, 2013. Under the 2013 Plan, the maximum number of shares of the Bancorp’s common stock to be issued is 1,748,250 . The 2013 Plan permits the granting of stock options and other equity incentives to officers, employees, directors and other key persons. The 2003 Stock Incentive Plan (the “2003 Plan”) was amended and restated and approved by shareholders in April 2009. The 2003 Plan amendments included increasing the maximum number of shares of Bancorp’s common stock to be issued under the 2003 Plan from 600,000 shares to 1,200,000 shares and increasing the number of shares that can be issued in the form of awards other than stock options or stock appreciation rights from 200,000 to 400,000 . The 2003 Plan permits the granting of stock options and other equity incentives to officers, employees, directors and other key persons. The exercise price of each stock option may not be less than the fair market value of the Bancorp’s common stock on the date of grant, and options shall have a term of no more than ten years. Stock options are designated as either non-qualified or incentive stock options. In general, the stock option price is payable in cash, by the delivery of shares of common stock already owned by the grantee, or a combination thereof. With respect only to non-qualified stock option grants issued under the 2013 Plan, the exercise may also be accomplished by withholding the exercise price from the number of shares that would otherwise be delivered upon a cash exercise of the option. The fair value of stock options on the date of grant is estimated using the Black-Scholes Option-Pricing Model. Awards of nonvested share units and nonvested performance share units are valued at the fair market value of the Bancorp’s common stock as of the award date. Performance share awards are granted in order to provide certain officers of the Corporation the opportunity to earn shares of common stock, the number of which is determined pursuant to, and subject to the attainment of, performance goals during a specified measurement period. The number of shares earned will range from zero to 200% of the target number of shares dependent upon the Corporation’s core return on equity and core earnings per share growth ranking compared to an industry peer group. Vesting of stock options and share awards may accelerate or may be subject to proportional vesting if there is a change in control, disability, retirement or death (as defined in the 2013 Plan and the 2003 Plan). The following table presents the amounts recognized in the consolidated financial statements for stock options, nonvested share awards and nonvested performance shares: (Dollars in thousands) Years ended December 31, 2015 2014 2013 Share-based compensation expense $2,074 $1,880 $1,876 Related income tax benefit $767 $676 $673 Compensation expense for awards is recognized over the service period based on the fair value at the date of grant. Nonvested performance share unit compensation expense is based on the most recent performance assumption available and is adjusted as assumptions change. If the goals are not met, no compensation cost will be recognized and any recognized compensation costs will be reversed. Stock Options Washington Trust uses historical data to estimate stock option exercise and employee departure behavior used in the option-pricing model. The expected term of options granted was derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding. Expected volatility was based on historical volatility of Washington Trust shares. The risk-free rate for periods within the contractual life of the stock option was based on the U.S. Treasury yield curve in effect at the date of grant. The following presents the assumptions used in determining the grant date fair value of the stock option awards granted to certain key employees: 2015 2014 2013 Options granted 48,600 25,850 54,600 Cliff vesting period (years) 3 - 5 3 3 Expected term (years) 7.5 8 8 Expected dividend yield 3.94 % 3.83 % 3.77 % Weighted average expected volatility 40.76 % 41.84 % 42.85 % Weighted average risk-free interest rate 1.95 % 2.27 % 2.46 % Weighted average grant-date fair value $11.15 $9.92 $10.35 The following table presents a summary of the status of Washington Trust’s stock options outstanding as of and for the year ended December 31, 2015 : Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (000’s) Beginning of period 357,477 $24.99 Granted 48,600 39.40 Exercised (87,625 ) 25.55 Forfeited or expired (9,336 ) 33.74 End of period 309,116 $26.84 6.01 $3,921 At end of period: Options exercisable 189,791 $21.78 4.34 $3,368 Options expected to vest in future periods 119,325 $34.89 8.67 $554 The total intrinsic value is the amount by which the fair value of the underlying stock exceeds the exercise price of an option on the exercise date. The following table presents additional information concerning options outstanding and options exercisable at December 31, 2015 : Options Outstanding Options Exercisable Exercise Price Ranges Number of Shares Weighted Average Remaining Life (Years) Weighted Average Exercise Price Number of Shares Weighted Average Exercise Price $15.01 to $20.00 53,132 3.90 $17.61 53,132 $17.61 $20.01 to $25.00 138,870 4.67 23.14 131,870 23.05 $25.01 to $30.00 — — — — — $30.01 to $35.00 70,214 7.77 32.76 4,689 32.76 $35.01 to $40.00 46,900 9.74 39.39 100 39.55 309,116 6.01 $26.84 189,791 $21.78 The total intrinsic value of stock options exercised during the years ended December 31, 2015 , 2014 and 2013 was $1.2 million , $1.0 million and $1.7 million , respectively. Nonvested Shares During 2015 , the Corporation granted to directors and certain key employees 16,275 nonvested share units, with three -to five -year cliff vesting. During 2014 , the Corporation granted to directors and certain key employees 11,630 nonvested share units, with three -year cliff vesting. During 2013 , the Corporation granted to certain key employees 24,400 nonvested share units with three - to five -year cliff vesting. The following table presents a summary of the status of Washington Trust’s nonvested shares as of and for the year ended December 31, 2015 : Number of Shares Weighted Average Grant Date Fair Value Beginning of period 70,430 $27.34 Granted 16,275 38.53 Vested (34,779 ) 23.95 Forfeited (4,701 ) 29.72 End of period 47,225 $33.46 Nonvested Performance Shares The Corporation grants performance share units to certain executive officers providing the opportunity to earn shares of common stock over a three -year performance period based on various profitability results of the Corporation in comparison to a peer group. The number of shares earned can range from zero to 200% of the target number of shares depending upon the Corporation’s core return on equity and core earnings per share growth ranking among an industry peer group. The following table presents a summary of the performance share awards as of December 31, 2015 : Grant Date Fair Value per Share Current Performance Assumption Expected Performance Share Award Performance shares awarded in: 2015 $38.02 152% 47,451 2014 34.66 139% 21,049 2013 26.05 141% 42,391 Total 110,891 The following table presents a summary of the status of Washington Trust’s performance share awards as of and for the year ended December 31, 2015 : Number of Shares Weighted Average Grant Date Fair Value Beginning of period 99,696 $27.12 Granted 47,451 38.02 Vested (35,743 ) 23.65 Forfeited (513 ) 30.39 End of period 110,891 $32.81 As of December 31, 2015 , there was $3.1 million of total unrecognized compensation cost related to share-based compensation arrangements (including stock options, nonvested share awards and performance share awards) granted under the Plans. That cost is expected to be recognized over a weighted average period of 2.09 years. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 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. 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, 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 and estate services, including services as trustee, personal representative, custodian and guardian; and settlement of decedents’ estates. 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 tables present the statement of operations and total assets for Washington Trust’s reportable segments: (Dollars in thousands) Year ended December 31, 2015 Commercial Banking Wealth Management Services Corporate Consolidated Total Net interest income (expense) $84,757 ($47 ) $19,272 $103,982 Provision for loan losses 1,050 — — 1,050 Net interest income (expense) after provision for loan losses 83,707 (47 ) 19,272 102,932 Noninterest income 20,618 35,416 2,306 58,340 Noninterest expenses: Depreciation and amortization expense 2,584 1,488 213 4,285 Other noninterest expenses 55,203 25,632 11,809 92,644 Total noninterest expenses 57,787 27,120 12,022 96,929 Income before income taxes 46,538 8,249 9,556 64,343 Income tax expense 15,330 3,475 2,073 20,878 Net income $31,208 $4,774 $7,483 $43,465 Total assets at period end $3,152,231 $63,801 $555,572 $3,771,604 Expenditures for long-lived assets 4,714 411 354 5,479 (Dollars in thousands) Year ended December 31, 2014 Commercial Banking Wealth Management Services Corporate Consolidated Total Net interest income (expense) $80,500 ($24 ) $19,029 $99,505 Provision for loan losses 1,850 — — 1,850 Net interest income (expense) after provision for loan losses 78,650 (24 ) 19,029 97,655 Noninterest income 17,575 33,378 8,062 59,015 Noninterest expenses: Depreciation and amortization expense 2,447 1,127 203 3,777 Other noninterest expenses 52,639 22,386 18,045 93,070 Total noninterest expenses 55,086 23,513 18,248 96,847 Income before income taxes 41,139 9,841 8,843 59,823 Income tax expense 13,497 3,724 1,778 18,999 Net income $27,642 $6,117 $7,065 $40,824 Total assets at period end $2,986,453 $52,720 $547,701 $3,586,874 Expenditures for long-lived assets 3,474 1,578 174 5,226 (Dollars in thousands) Year ended December 31, 2013 Commercial Banking Wealth Management Services Corporate Consolidated Total Net interest income $79,633 $7 $12,145 $91,785 Provision for loan losses 2,400 — — 2,400 Net interest income after provision for loan losses 77,233 7 12,145 89,385 Noninterest income (expense) 30,769 31,825 (514 ) 62,080 Noninterest expenses: Depreciation and amortization expense 2,473 1,277 213 3,963 Other noninterest expenses 61,976 20,494 12,352 94,822 Total noninterest expenses 64,449 21,771 12,565 98,785 Income (loss) before income taxes 43,553 10,061 (934 ) 52,680 Income tax expense (benefit) 14,598 3,724 (1,795 ) 16,527 Net income $28,955 $6,337 $861 $36,153 Total assets at period end $2,517,059 $50,297 $621,511 $3,188,867 Expenditures for long-lived assets 1,286 112 93 1,491 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The following tables present the activity in other comprehensive income (loss): (Dollars in thousands) Year ended December 31, 2015 Pre-tax Amounts Income Taxes Net of Tax Securities available for sale: Net change in fair value of securities available for sale ($4,926 ) ($1,755 ) ($3,171 ) Cash flow hedges: Changes in fair value of cash flow hedges (102 ) (49 ) (53 ) Net cash flow hedge losses reclassified into earnings (1) 469 172 297 Net change in the fair value of cash flow hedges 367 123 244 Defined benefit plan obligation adjustment (2) 2,948 911 2,037 Total other comprehensive loss ($1,611 ) ($721 ) ($890 ) (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. (Dollars in thousands) Year ended December 31, 2014 Pre-tax Amounts Income Taxes Net of Tax Securities available for sale: Net change in fair value of securities available for sale $1,601 $580 $1,021 Cash flow hedges: Changes in fair value of cash flow hedges (56 ) (18 ) (38 ) Net cash flow hedge losses reclassified into earnings (1) 577 208 369 Net change in the fair value of cash flow hedges 521 190 331 Defined benefit plan obligation adjustment (2) (13,493 ) (4,885 ) (8,608 ) Total other comprehensive loss ($11,371 ) ($4,115 ) ($7,256 ) (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. (Dollars in thousands) Year ended December 31, 2013 Pre-tax Amounts Income Taxes Net of Tax Securities available for sale: Changes in fair value of securities available for sale ($10,586 ) ($3,890 ) ($6,696 ) Net gains on securities classified into earnings (1) 294 106 188 Net change in fair value of securities available for sale (10,292 ) (3,784 ) (6,508 ) Reclassification adjustment for other-than-temporary impairment losses transferred into earnings (2) 3,195 1,258 1,937 Cash flow hedges: Changes in fair value of cash flow hedges (58 ) (23 ) (35 ) Net cash flow hedge losses reclassified into earnings (3) 657 234 423 Net change in the fair value of cash flow hedges 599 211 388 Defined benefit plan obligation adjustment (4) 20,406 7,277 13,129 Total other comprehensive income $13,908 $4,962 $8,946 (1) Reported as net realized gains on securities and total other-than-temporary impairment losses on securities in the Consolidated Statements of Income. (2) Reported as the portion of loss recognized in other comprehensive income in the Consolidated Statements of Income. (3) Included in interest expense on junior subordinated debentures in the Consolidated Statements of Income. (4) Included in salaries and employee benefits expense in the Consolidated Statements of Income. The following 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 $4,222 $— ($287 ) ($12,744 ) ($8,809 ) Other comprehensive loss before reclassifications (3,171 ) — (53 ) — (3,224 ) Amounts reclassified from accumulated other comprehensive income — — 297 2,037 2,334 Net other comprehensive (loss) income (3,171 ) — 244 2,037 (890 ) Balance at December 31, 2015 $1,051 $— ($43 ) ($10,707 ) ($9,699 ) (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 $3,201 $— ($618 ) ($4,136 ) ($1,553 ) Other comprehensive income (loss) before reclassifications 1,021 — (38 ) — 983 Amounts reclassified from accumulated other comprehensive income — — 369 (8,608 ) (8,239 ) Net other comprehensive income (loss) 1,021 — 331 (8,608 ) (7,256 ) Balance at December 31, 2014 $4,222 $— ($287 ) ($12,744 ) ($8,809 ) (Dollars in thousands) Net Unrealized Gains on Available For Sale Securities Noncredit -related Impairment Net Unrealized Losses on Cash Flow Hedges Pension Benefit Adjustment Total Balance at December 31, 2012 $9,709 ($1,937 ) ($1,006 ) ($17,265 ) ($10,499 ) Other comprehensive loss before reclassifications (6,808 ) — (35 ) — (6,843 ) Amounts reclassified from accumulated other comprehensive income 300 1,937 423 13,129 15,789 Net other comprehensive (loss) income (6,508 ) 1,937 388 13,129 8,946 Balance at December 31, 2013 $3,201 $— ($618 ) ($4,136 ) ($1,553 ) |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings per Common Share The following table presents the calculation of earnings per common share: (Dollars and shares in thousands, except per share amounts) Years ended December 31, 2015 2014 2013 Earnings per common share - basic: Net income $43,465 $40,824 $36,153 Less dividends and undistributed earnings allocated to participating securities (126 ) (152 ) (156 ) Net income applicable to common shareholders 43,339 40,672 35,997 Weighted average common shares 16,879 16,689 16,506 Earnings per common share - basic $2.57 $2.44 $2.18 Earnings per common share - diluted: Net income $43,465 $40,824 $36,153 Less dividends and undistributed earnings allocated to participating securities (126 ) (151 ) (155 ) Net income applicable to common shareholders 43,339 40,673 35,998 Weighted average common shares 16,879 16,689 16,506 Dilutive effect of common stock equivalents 188 183 158 Weighted average diluted common shares 17,067 16,872 16,664 Earnings per common share - diluted $2.54 $2.41 $2.16 Weighted average common stock equivalents, not included in common stock equivalents above because they were anti‑dilutive, totaled 34,850 , 59,234 and 23,286 for the years ended December 31, 2015 , 2014 and 2013 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Financial Instruments with Off-Balance Risk The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers and to manage the Corporation’s exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit, standby letters of credit, interest rate swap agreements and 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) December 31, 2015 2014 Financial instruments whose contract amounts represent credit risk: Commitments to extend credit: Commercial loans $360,795 $325,402 Home equity lines 219,427 200,932 Other loans 44,164 48,551 Standby letters of credit 5,629 5,102 Financial instruments whose notional amounts exceed the amount of credit risk: Forward loan commitments: Interest rate lock commitments 49,712 40,015 Commitments to sell mortgage loans 87,498 84,808 Loan related derivative contracts: Interest rate swaps with customers 302,142 165,795 Mirror swaps with counterparties 302,142 165,795 Risk participation-in agreements 21,474 — Interest rate risk management contracts: Interest rate swaps — 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, the total commitment amounts do not necessarily represent future cash requirements. Each borrower’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained is based on management’s credit evaluation of the borrower. Standby Letters of Credit Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. These standby letters of credit are primarily issued to support the financing needs of the Bank’s commercial customers. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan facilities to customers. The collateral supporting those commitments is essentially the same as for other commitments. Most standby letters of credit extend for 1 year. At December 31, 2015 and 2014 , the maximum potential amount of undiscounted future payments, not reduced by amounts that may be recovered, totaled $5.6 million and $5.1 million , respectively. At December 31, 2015 and 2014 , there were no liabilities to beneficiaries resulting from standby letters of credit. Fee income on standby letters of credit was insignificant for the years ended December 31, 2015 , 2014 and 2013 . At December 31, 2015 and 2014 , a substantial portion of the standby letters of credit were supported by pledged collateral. The collateral obtained is determined based on management’s credit evaluation of the customer. Should the Corporation be required to make payments to the beneficiary, repayment from the customer to the Corporation is required. Forward Loan Commitments Interest rate lock commitments are extended to borrowers 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 At December 31, 2015 , the Corporation was committed to rent premises used in banking operations under non-cancelable operating leases. Rental expense under the operating leases amounted to $3.5 million , $3.1 million and $2.8 million for December 31, 2015 , 2014 and 2013 , respectively. The following table presents the minimum annual lease payments under the terms of these leases, exclusive of renewal provisions: (Dollars in thousands) Years ending December 31: 2016 $3,110 2017 2,841 2018 2,551 2019 2,273 2020 1,631 2021 and thereafter 25,535 Total minimum lease payments $37,941 Lease expiration dates range from 4 months to 25 years, with renewal options on certain leases of 6 months to 25 years. Other Contingencies Litigation The Corporation is involved in various claims and legal proceedings arising out of the ordinary course of business. Management is of the opinion, based on its review with counsel of the development of such matters to date, that the ultimate disposition of such matters will not materially affect the consolidated financial position or results of operations of the Corporation. Other When selling a residential real estate mortgage loan or acting as originating agent on behalf of a third party, Washington Trust generally makes various representations and warranties. The specific representations and warranties depend on the nature of the transaction and the requirements of the buyer. Contractual liability may arise when the representations and warranties are breached. In the event of a breach of these representations and warranties, Washington Trust may be required to either repurchase the residential real estate mortgage loan (generally at unpaid principal balance plus accrued interest) with the identified defects or indemnify (“make-whole”) the investor for its losses. In the case of a repurchase, the Corporation will bear any subsequent credit loss on the residential real estate mortgage loan. Washington Trust has experienced an insignificant number of repurchase demands over a period of many years. As of December 31, 2015 and 2014 , the carrying value of loans repurchased due to representation and warranty claims was $534 thousand and $342 thousand , respectively. Washington Trust has recorded a reserve for its exposure to losses for premium recapture and the obligation to repurchase previously sold residential real estate mortgage loans. The reserve balance amounted to $180 thousand and $280 thousand at December 31, 2015 and December 31, 2014 and is included in other liabilities in the Consolidated Balance Sheets. Any change in the estimate is recorded in mortgage banking revenues in the Consolidated Statements of Income. |
Parent Company Financial Statem
Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Company Financial Statements | Parent Company Financial Statements The following tables present parent company only financial statements of the Bancorp, reflecting the investment in the Bank on the equity basis of accounting. The Statements of Changes in Shareholders’ Equity for the parent company only are identical to the Consolidated Statements of Changes in Shareholders’ Equity and are therefore not presented. Balance Sheets (Dollars in thousands, except par value) December 31, 2015 2014 Assets: Cash on deposit with bank subsidiary $3,169 $2,998 Interest-bearing balances due from banks — 939 Investment in subsidiaries at equity value 398,520 365,766 Dividends receivable from subsidiaries 5,082 5,101 Other assets 377 311 Total assets $407,148 $375,115 Liabilities: Junior subordinated debentures $22,681 $22,681 Dividends payable 6,075 5,617 Contingent consideration liability 2,945 — Other liabilities 59 538 Total liabilities 31,760 28,836 Shareholders’ Equity: Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 17,019,578 shares in 2015 and 16,746,363 shares in 2014 1,064 1,047 Paid-in capital 110,949 101,204 Retained earnings 273,074 252,837 Accumulated other comprehensive loss (9,699 ) (8,809 ) Total shareholders’ equity 375,388 346,279 Total liabilities and shareholders’ equity $407,148 $375,115 Statements of Income (Dollars in thousands) Years ended December 31, 2015 2014 2013 Income: Dividends from subsidiaries $23,399 $20,116 $24,481 Other income 13 13 20 Total income 23,412 20,129 24,501 Expenses: Interest on junior subordinated debentures 871 964 1,484 Legal and professional fees 134 96 145 Acquisition related expenses 308 — — Other 295 253 279 Total expenses 1,608 1,313 1,908 Income before income taxes 21,804 18,816 22,593 Income tax benefit 557 454 661 Income before equity in undistributed earnings of subsidiaries 22,361 19,270 23,254 Equity in undistributed earnings of subsidiaries 21,104 21,554 12,899 Net income $43,465 $40,824 $36,153 Statements of Cash Flows (Dollars in thousands) Years ended December 31, 2015 2014 2013 Cash flow from operating activities: Net income $43,465 $40,824 $36,153 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiary (21,104 ) (21,554 ) (12,899 ) Increase in dividend receivable 19 (495 ) (408 ) Decrease in other assets (67 ) 183 397 Decrease in accrued expenses and other liabilities 2,466 (516 ) (621 ) Other, net (3,363 ) (245 ) (214 ) Net cash provided by operating activities 21,416 18,197 22,408 Cash flows from investing activities: Repayment of equity investment in capital trust — — 310 Cash used in business combination, net of cash acquired (1,671 ) — — Net cash provided by investing activities (1,671 ) — 310 Cash flows from financing activities: Issuance of treasury stock, including net deferred compensation plan activity — — 30 Proceeds from stock option exercises and issuance of other equity instruments 1,563 1,189 3,651 Tax benefit from stock option exercises and other equity instrument issuances 694 578 570 Redemption of junior subordinated debentures — — (10,310 ) Cash dividends paid (22,770 ) (19,722 ) (16,628 ) Net cash used in financing activities (20,513 ) (17,955 ) (22,687 ) Net increase (decrease) in cash (768 ) 242 31 Cash at beginning of year 3,937 3,695 3,664 Cash at end of year $3,169 $3,937 $3,695 |
Sale of Business Line
Sale of Business Line | 12 Months Ended |
Dec. 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. We have recognized $180 thousand in both 2015 and 2014 as other income as a result of this activity. As of December 31, 2015 , $540 thousand of deferred revenue remained to be earned under this arrangement. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Consolidation | 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. |
Basis of Accounting | Certain previously reported amounts have been reclassified to conform to current year’s presentation. The accounting and reporting policies of the Corporation conform to accounting principles generally accepted in the United States of America (“GAAP”) and to general practices of the banking industry. |
Use of Estimates | In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to change are the determination of the allowance for loan losses, the valuation of goodwill and identifiable intangible assets, the assessment of investment securities for impairment and accounting for defined benefit pension plans. |
Cash and Cash Equivalents | Short-term Investments Short-term investments consist of highly liquid investments with a maturity date of three months or less when purchased and are considered to be cash equivalents. The Corporation’s short-term investments may be comprised of overnight federal funds sold, securities purchased under resale agreements, money market mutual funds and U.S. Treasury bills. Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, and other short-term investments. |
Securities | Securities Investments in debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity and carried at amortized cost. Management determines the appropriate classification of securities at the time of purchase. Investments not classified as held to maturity are classified as available for sale. Securities available for sale consist of debt securities that are available for sale to respond to changes in market interest rates, liquidity needs, changes in funding sources and other similar factors. These assets are specifically identified and are carried at fair value. Changes in fair value of available for sale securities, net of applicable income taxes, are reported as a separate component of shareholders’ equity. Washington Trust does not have a trading portfolio. Premiums and discounts are amortized and accreted over the term of the securities on a method that approximates the level yield method. The amortization and accretion is included in interest income on securities. Interest income is recognized when earned. Realized gains or losses from sales of securities are determined using the specific identification method. The fair values of securities may be based on either quoted market prices or third party pricing services. When the fair value of an investment security is less than its amortized cost basis, the Corporation assesses whether the decline in value is other-than-temporary. The Corporation considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for impairment, the severity and duration of the impairment, changes in the value subsequent to the reporting date, forecasted performance of the issuer, changes in the dividend or interest payment practices of the issuer, changes in the credit rating of the issuer or the specific security, and the general market condition in the geographic area or industry in which the issuer operates. In determining whether an other-than-temporary impairment has occurred for debt securities, the Corporation compares the present value of cash flows expected to be collected from the security with the amortized cost of the security. If the present value of expected cash flows is less than the amortized cost of the security, then the entire amortized cost of the security will not be recovered; that is, a credit loss exists, and an other-than-temporary impairment shall be considered to have occurred. The credit loss component of an other-than-temporary impairment write-down for debt securities is recorded in earnings while the remaining portion of the impairment loss is recognized, net of tax, in other comprehensive income provided that the Corporation does not intend to sell the underlying debt security and it is more-likely-than-not that the Corporation would not have to sell the debt security prior to recovery of the unrealized loss, which may be to maturity. If the Corporation intended to sell any securities with an unrealized loss or it is more-likely-than-not that the Corporation would be required to sell the investment securities, before recovery of their amortized cost basis, then the entire unrealized loss would be recorded in earnings. See Note 5 for further discussion on the Corporation’s investment securities portfolio. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock The Bank is a member of the Federal Home Loan Bank of Boston (“FHLBB”). The FHLBB is a cooperative that provides services, including funding in the form of advances, to its member banking institutions. As a requirement of membership, the Bank must own a minimum amount of FHLBB stock, calculated periodically based primarily on its level of borrowings from the FHLBB. No market exists for shares of the FHLBB and therefore, they are carried at par value. FHLBB stock may be redeemed at par value 5 years following termination of FHLBB membership, subject to limitations which may be imposed by the FHLBB or its regulator, the Federal Housing Finance Board, to maintain capital adequacy of the FHLBB. While the Corporation currently has no intentions to terminate its FHLBB membership, the ability to redeem its investment in FHLBB stock would be subject to the conditions imposed by the FHLBB. The Corporation monitors its investment to determine if impairment exists. Based on the capital adequacy and the liquidity position of the FHLBB, management believes there is no impairment related to the carrying amount of the Corporation’s FHLBB stock as of December 31, 2015 . |
Mortgage Loans Held for Sale | Mortgage Loans Held for Sale - Residential mortgage loans originated and intended for sale in the secondary market are classified as held for sale. The Corporation has elected the fair value option pursuant to Accounting Standards Codification (“ASC”) 825, “Financial Instruments” for certain closed loans intended for sale. ASC 825 allows for the irrevocable option to elect fair value accounting for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis that may otherwise not be required to be measured at fair value under other accounting standards. Washington Trust elected the fair value option for certain residential real estate mortgage loans held for sale pursuant to forward sale commitments in order to better match changes in fair values of the loans with changes in the fair value of the derivative forward loan sale contracts used to economically hedge them. Changes in the fair value of loans held for sale are recorded in earnings and are offset by changes in fair value relating to forward sale commitments and interest rate lock commitments. For residential mortgage loans intended for sale that are not accounted for under the fair value option, lower of cost or market (“LOCOM”) accounting is applied. Such loans are carried at lower of aggregate cost, net of unamortized deferred loan origination fees and costs, or fair value. Gains and losses on residential loan sales are recognized at the time of sale and included in mortgage banking revenues. Commissions received on mortgage loans brokered to various investors are recognized when received and included in mortgage banking revenues. |
Loan Servicing Rights | Loan Servicing Rights - Rights to service mortgage loans for others are recognized as an asset, including rights acquired through both purchases and originations. Upon the sale of mortgage loans, a mortgage servicing asset is established, which represents the current estimated fair value based on the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, ancillary income, prepayment speeds, and default rates and losses. Capitalized loan servicing rights are included in other assets. Mortgage servicing rights are amortized as an offset to mortgage banking revenues over the period of estimated net servicing income. They are periodically evaluated for impairment based on their fair value. Impairment is measured on an aggregated basis by stratifying the rights based on homogeneous characteristics such as note rate and loan type. The fair value is estimated based on the present value of expected cash flows, incorporating assumptions for discount rate, prepayment speed and servicing cost. Any impairment is recognized through a valuation allowance and as a reduction to mortgage banking revenues. |
Loans | Loans Portfolio Loans - Loans held in the portfolio are stated at the principal amount outstanding, net of unamortized deferred loan origination fees and costs. Interest income is accrued on a level yield basis based on principal amounts outstanding. Deferred loan origination fees and costs are amortized as an adjustment to yield over the life of the related loans. Nonaccrual Loans - Loans, with the exception of certain well-secured loans that are in the process of collection, are placed on nonaccrual status and interest recognition is suspended when such loans are 90 days or more overdue with respect to principal and/or interest or sooner if considered appropriate by management. 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 is reversed against current period income. Subsequent interest payments received on nonaccrual loans are applied to the outstanding principal balance of the loan or recognized as interest income depending on management’s assessment of the ultimate collectability of the loan. Loans are removed from nonaccrual status when they have been current as to principal and interest for approximately 6 months, 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. Impaired Loans - Impaired loans are loans for which it is probable that the Corporation will not be able to collect all amounts due according to the contractual terms of the loan agreements and loans restructured in a troubled debt restructuring. Impairment is measured on a discounted cash flow method based upon the loan’s contractual effective interest rate, or at the loan’s observable market price, or if the loan is collateral dependent, at the fair value. 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. Interest income on nonaccrual impaired loans is recognized as described above under the caption “Nonaccrual Loans.” Impaired accruing loans consist of those troubled debt restructurings for which management has concluded that the collectability of the loan is not in doubt. Troubled Debt Restructured Loans - Loans are considered to be troubled debt restructurings when the Corporation has granted concessions to a borrower due to the borrower’s financial condition that it otherwise would not have considered. These concessions 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 of 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 collectability of the loan. Loans which are already on nonaccrual status at the time of the restructuring generally remain on nonaccrual status for approximately 6 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. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is management’s best estimate of the risk of loss inherent in the loan portfolio as of the balance sheet date. The allowance is increased by provisions charged to earnings and by recoveries of amounts previously charged off, and is reduced by charge-offs on loans. Loan charge-offs are recognized when management believes the collectability of the principal balance outstanding is unlikely. Full or partial charge-offs on collateral dependent impaired loans are generally recognized when the collateral is deemed to be insufficient to support the carrying value of the loan. The level of the allowance is based on management’s ongoing review of the growth and composition of the loan portfolio, historical loss experience, estimated loss emergence period (the period from the event that triggers the eventual default until the actual loss is recognized with a charge-off), current economic conditions, analysis of asset quality and credit quality levels and trends, the performance of individual loans in relation to contract terms and other pertinent factors. A methodology is used to systematically measure the amount of estimated loan loss exposure inherent in the loan portfolio for the purposes of establishing a sufficient allowance for loan losses. The methodology includes: (1) the identification of loss allocations for individual loans deemed to be impaired and (2) the application of loss allocation factors for non-impaired loans based on historical loss experience and estimated loss emergence period, with adjustments for various exposures that management believes are not adequately represented by historical loss experience. 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. For loans that are collectively evaluated, we analyze historical loss experience by loan segment over an established look-back period deemed to be relevant to the inherent risk of loss in the portfolios. Loans are segmented by loan type, collateral type, delinquency status and loan risk rating, where applicable. These losses are adjusted to reflect the loss emergence period. These amounts are supplemented by certain qualitative risk factors reflecting management’s view of how losses may vary from those represented by historical loss rates. These qualitative risk factors include: 1) changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; 2) changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments; 3) changes in the nature and volume of the portfolio and in the terms of loans; 4) changes in the experience, ability, and depth of lending management and other relevant staff; 5) changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or rated loans; 6) changes in the quality of the institution’s loan review system; 7) changes in the value of underlying collateral for collateral dependent loans; 8) the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and 9) the effect of other external factors such as legal and regulatory requirements on the level of estimated credit losses in the institution’s existing portfolio. 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. 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 allowance is an estimate, and ultimate losses may vary from management’s estimate. Changes in the estimate are recorded in the results of operations in the period in which they become known, along with provisions for estimated losses incurred during that period. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation. Depreciation for financial reporting purposes is calculated on the straight-line method over the estimated useful lives of assets. Expenditures for major additions and improvements are capitalized while the costs of current maintenance and repairs are charged to operating expenses. The estimated useful lives of premises and improvements range from 5 to 40 years. For furniture, fixtures and equipment, the estimated useful lives range from 3 to 20 years. |
Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Identifiable Intangible Assets The Corporation allocates the cost of an acquired entity to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. Other intangible assets identified in acquisitions consist of advisory contracts and non-compete agreements. The value attributed to these intangible assets was based on the time period over which they are expected to generate economic benefits. The excess of the purchase price for acquisitions over the fair value of the net assets acquired, including other intangible assets, was recorded as goodwill. Goodwill is not amortized but is tested for impairment at the reporting unit level, defined as the segment level, at least annually in the fourth quarter or more frequently whenever events or circumstances occur that indicate that it is more-likely-than-not that an impairment loss has occurred. In assessing impairment, the Corporation has the option to perform a qualitative analysis to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount. If, after assessing the totality of such events or circumstances, we determine that the fair value of a reporting unit is not less than its carrying amount, then we would not be required to perform a two-step impairment test. The Corporation has not opted to perform this qualitative analysis. Goodwill was tested for impairment using the two-step quantitative impairment analysis described below. Step 1 of the quantitative impairment analysis requires a comparison of each reporting unit’s fair value to its carrying value to identify potential impairment. Step 2 of the analysis is necessary only if a reporting unit’s carrying amount exceeds its fair value. Step 2 is a more detailed analysis, which involves measuring the excess of the fair value of the reporting unit, as determined in Step 1, over the aggregate fair value of the individual assets, liabilities, and identifiable intangibles as if the reporting unit was being acquired in a business combination. Goodwill impairment exists when a reporting unit’s carrying value of goodwill exceeds its implied fair value. Significant judgment is applied when goodwill is assessed for impairment. This judgment includes the selection of appropriate discount rates, the identification of relevant market comparables and the development of cash flow projections. The selection and weighting of the various fair value techniques may result in a higher or lower fair value. Judgment is applied in determining the weightings that are most representative of fair value. Other intangible assets with definite lives are tested for impairment whenever events or circumstances occur that indicate that the carrying amount may not be recoverable. If applicable, the Corporation tests each of the intangibles by comparing the carrying value of the intangible asset to the sum of undiscounted cash flows expected to be generated by the asset. If the carrying amount of the asset exceeded its undiscounted cash flows, then an impairment loss would be recognized for the amount by which the carrying amount exceeds its fair value. |
Impairment of Long-Lived Assets Other than Goodwill | Impairment of Long - Lived Assets Other than Goodwill Long-lived assets are reviewed for impairment at least annually or whenever events or changes in business circumstances indicate that the remaining useful life may warrant revision or that the carrying amount of the long-lived asset may not be fully recoverable. If impairment is determined to exist, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. |
Property Acquired through Foreclosure or Repossession | Property Acquired through Foreclosure or Repossession Property acquired through foreclosure or repossession is carried at the lower of cost or fair value less estimated costs to sell. Fair value of such assets is determined based on independent appraisals and other relevant factors. Any write-down to fair value at the time of foreclosure or repossession is charged to the allowance for loan losses. A valuation allowance is maintained for declines in market value and for estimated selling expenses. Increases to the valuation allowance, expenses associated with ownership of these properties, and gains and losses from their sale are included in foreclosed property costs. Loans that are substantively repossessed include only those loans for which the Corporation has obtained control of the collateral, but has not completed legal foreclosure proceedings. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance The investment in BOLI represents the cash surrender value of life insurance policies on the lives of certain employees who have provided positive consent allowing the Bank to be the beneficiary of such policies. Increases in the cash value of the policies, as well as insurance proceeds received, are recorded in noninterest income, and are not subject to income taxes. The financial strength of the insurance carrier is reviewed prior to the purchase of BOLI and annually thereafter. |
Investment in Real Estate Limited Partnership | Investment in Real Estate Limited Partnership Washington Trust has a 99.9% ownership interest in two real estate limited partnerships that renovate, own and operate two low-income housing complexes. Washington Trust neither actively participates nor has a controlling interest in these limited partnerships and accounts for its investments under the equity method of accounting. The carrying value of the investments is recorded in other assets on the Consolidated Balance Sheet. Net losses generated by the partnership are recorded as a reduction to Washington Trust’s investment and as a reduction of noninterest income in the Consolidated Statements of Income. Tax credits generated by the partnership are recorded as a reduction in the income tax provision in the year they are allowed for tax reporting purposes. The results of operations of the real estate limited partnerships are periodically reviewed to determine if the partnership generates sufficient operating cash flow to fund its current obligations. In addition, the current value of the underlying properties is compared to the outstanding debt obligations. If it is determined that the investment is permanently impaired, the carrying value will be written down to the estimated realizable value. |
Transfers and Servicing of Assets and Extinguishments of Liabilities | Transfers and Servicing of Assets and Extinguishments of Liabilities The accounting for transfers and servicing of financial assets and extinguishments of liabilities is based on consistent application of a financial components approach that focuses on control. This approach distinguishes transfers of financial assets that are sales from transfers that are secured borrowings. After a transfer of financial assets, the Corporation recognizes all financial and servicing assets it controls and liabilities it has incurred and derecognizes financial assets it no longer controls and liabilities that have been extinguished. This financial components approach focuses on the assets and liabilities that exist after the transfer. Many of these assets and liabilities are components of financial assets that existed prior to the transfer. If a transfer does not meet the criteria for a sale, the transfer is accounted for as a secured borrowing with a pledge of collateral. |
Fee Revenue | Fee Revenue Wealth management revenues include asset-based revenues (trust and investment advisory fees and mutual fund fees) that are primarily accrued as earned based upon a percentage of asset values under administration. Also included in wealth management revenues are transaction-based revenues (financial planning fees, commissions and other service fees), which are recognized as revenue to the extent that services have been completed. Fee revenue from deposit service charges is generally recognized when earned. |
Pension Costs | Pension Costs Pension benefits are accounted for using the net periodic benefit cost method, which recognizes the compensation cost of an employee’s pension benefit over that employee’s approximate service period. Pension benefit costs and benefit obligations incorporate various actuarial and other assumptions, including discount rates, mortality, rates of return on plan assets and compensation increases. Washington Trust evaluates these assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to so do. The effect of modifications to those assumptions is recorded in other comprehensive income (loss) and amortized to net periodic cost over future periods. Washington Trust believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. The funded status of defined benefit pension plans, measured as the difference between the fair value of plan assets and the projected benefit obligation, is recognized in the Consolidated Balance Sheet. The changes in the funded status of the defined benefit plans, including actuarial gains and losses and prior service costs and credits, are recognized in comprehensive income in the year in which the changes occur. |
Stock-Based Compensation | Stock-Based Compensation Stock-based compensation plans provide for awards of stock options and other equity incentives, including nonvested share units and nonvested performance share units. Compensation expense for awards is recognized over the service period based on the fair value at the date of grant. The Corporation estimates grant date fair value for stock options using the Black-Scholes option-pricing model. Awards of nonvested share units and nonvested performance share units are valued at the fair market value of the Bancorp’s common stock as of the award date. Nonvested performance share unit compensation expense is based on the most recent performance assumption available and is adjusted as assumptions change. If the goals are not met, no compensation cost will be recognized and any recognized compensation costs will be reversed. Excess tax benefits (expenses) related to stock option exercises and issuance of other compensation-related equity instruments are reflected on the Consolidated Statements of Cash Flows as financing activity. |
Income Taxes | Income Taxes Income tax expense is determined based on the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Corporation recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Corporation records interest related to unrecognized tax benefits in income tax expense. Penalties, if incurred, would be recognized as a component of income tax expense. |
Segment Reporting | Segment Reporting 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, operations and other support functions. |
Earnings Per Share (EPS) | Earnings Per Share (“EPS”) The Corporation utilizes the two-class method earnings allocation formula to determine earnings per share of each class of stock according to dividends and participation rights in undistributed earnings. 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. Under the two-class method, basic earnings per common share is computed by dividing net earnings allocated to common stock by the weighted-average number of common shares outstanding. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of common stock equivalents. |
Comprehensive Income | Comprehensive Income Comprehensive income is defined as all changes in equity, except for those resulting from transactions with shareholders. Net income is a component of comprehensive income. All other components are referred to in the aggregate as other comprehensive income (loss) . |
Guarantees | Guarantees Standby letters of credit are considered a guarantee of the Corporation. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan facilities to customers. Under the standby letters of credit, the Corporation is required to make payments to the beneficiary of the letters of credit upon request by the beneficiary contingent upon the customer’s failure to perform under the terms of the underlying contract with the beneficiary. |
Derivative Insturments and Hedging Activities | Derivative Instruments and Hedging Activities Derivatives are recognized as either assets or liabilities on the balance sheet and are measured at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and resulting designation. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative are recorded in other comprehensive income (loss) and subsequently reclassified to earnings when gains or losses are realized. The ineffective portion of changes in the fair value is recognized directly in earnings as interest expense. For derivatives not designated as hedges, changes in fair value of the derivative instruments are recognized in earnings, in noninterest income. The accrued net settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense based on the item being hedged. Changes in fair value of derivatives including accrued net settlements that do not qualify for hedge accounting are reported in noninterest income. When a cash flow hedge is discontinued, but the hedged cash flows or forecasted transaction is still expected to occur, changes in value that were accumulated in other comprehensive income (loss) are amortized or accreted into earnings over the same periods which the hedged transactions will affect earnings. By using certain derivative financial instruments, the Corporation exposes itself to credit risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Corporation, which creates credit risk for the Corporation. When the fair value of a derivative contract is negative, the Corporation owes the counterparty and, therefore, it does not possess credit risk. The credit risk in derivative instruments is minimized by entering into transactions with highly rated counterparties that management believes to be creditworthy. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820, “Fair Value Measurements and Disclosures”, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The required disclosures about fair value measurements have been included in Note 15. |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Acquisition [Abstract] | |
Acquisition | The following table presents the estimated fair value of identifiable assets acquired and liabilities assumed as of the date of acquisition, August 1, 2015: (Dollars in thousands) Fair Value Assets: Cash $10 Deferred tax assets 653 Goodwill 5,945 Identifiable intangible assets 7,515 Other assets 202 Total assets acquired $14,325 Liabilities: Contingent consideration liability $2,904 Deferred tax liabilities 2,803 Other liabilities 1,507 Total liabilities assumed $7,214 Net assets acquired $7,111 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 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) December 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Securities Available for Sale: Obligations of U.S. government-sponsored enterprises $77,330 $73 ($388 ) $77,015 Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 228,908 6,398 (450 ) 234,856 Obligations of states and political subdivisions 35,353 727 — 36,080 Individual name issuer trust preferred debt securities 29,815 — (4,677 ) 25,138 Corporate bonds 1,970 5 (20 ) 1,955 Total securities available for sale $373,376 $7,203 ($5,535 ) $375,044 Held to Maturity: Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises $20,023 $493 $— $20,516 Total securities held to maturity 20,023 493 — 20,516 Total securities $393,399 $7,696 ($5,535 ) $395,560 (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) December 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 $— $15,100 $62,230 $— $77,330 Weighted average yield — % 1.42 % 2.34 % — % 2.16 % Mortgage-backed securities issued by U.S. government-sponsored enterprises: Amortized cost 38,526 101,233 60,694 28,455 228,908 Weighted average yield 3.53 3.08 2.63 1.25 2.81 Obligations of states and political subdivisions: Amortized cost 3,925 22,462 8,966 — 35,353 Weighted average yield 3.86 3.97 4.01 — 3.97 Individual name issuer trust preferred debt securities: Amortized cost — — — 29,815 29,815 Weighted average yield — — — 1.46 1.46 Corporate bonds: Amortized cost — 1,244 726 — 1,970 Weighted average yield — 2.10 2.88 — 2.39 Total debt securities available for sale: Amortized cost $42,451 $140,039 $132,616 $58,270 $373,376 Weighted average yield 3.56 % 3.04 % 2.58 % 1.36 % 2.67 % Fair value $43,532 $143,061 $134,119 $54,332 $375,044 Securities Held to Maturity: Mortgage-backed securities issued by U.S. government-sponsored enterprises: Amortized cost $2,576 $7,971 $6,267 $3,209 $20,023 Weighted average yield 3.11 % 3.03 % 2.64 % 0.75 % 2.55 % Fair value $2,640 $8,167 $6,421 $3,288 $20,516 Included in the above table were debt securities with an amortized cost balance of $139.1 million and a fair value of $134.7 million at December 31, 2015 that are callable at the discretion of the issuers. Final maturities of the callable securities range from 2 months to 21 years, with call features ranging from 1 month to 6 years. |
Securities in a Continuous Unrealized Loss Position | 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 December 31, 2015 # Fair Value Unrealized Losses # Fair Value Unrealized Losses # Fair Value Unrealized Losses Obligations of U.S. government-sponsored enterprises 4 $34,767 ($388 ) — $— $— 4 $34,767 ($388 ) Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 9 61,764 (450 ) — — — 9 61,764 (450 ) Individual name issuer trust preferred debt securities — — — 10 25,138 (4,677 ) 10 25,138 (4,677 ) Corporate bonds 3 1,235 (20 ) — — — 3 1,235 (20 ) Total temporarily impaired securities 16 $97,766 ($858 ) 10 $25,138 ($4,677 ) 26 $122,904 ($5,535 ) (Dollars in thousands) Less than 12 Months 12 Months or Longer Total December 31, 2014 # Fair Value Unrealized Losses # Fair Value Unrealized Losses # Fair Value Unrealized 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 ) |
Rollforward of cumulative credit-related impairment losses on debt securities | Credit-Related Impairment Losses Recognized on Debt Securities As of December 31, 2015 and December 31, 2014 , Washington Trust no longer had investments in two pooled trust preferred holdings in the form of collateralized debt obligations (“CDO”). During 2013, other-than-temporary impairment (“OTTI”) losses were recognized in earnings on these two pooled trust preferred debt securities. On March 22, 2013, the trustee for one of the pooled trust preferred securities issued a notice that liquidation of the CDO entity would take place at the direction of holders of the CDO tranches senior to the subordinate tranche interest held by Washington Trust. Accordingly, we recognized an other-than-temporary impairment charge in the first quarter of 2013 on the entire $2.8 million carrying value of the security, based on the expectation that proceeds from liquidation would be insufficient to satisfy the amount owed to the subordinate tranche. The liquidation was conducted in August 2013 and was insufficient to satisfy any amount owed to the subordinate tranche. In December 2013, Washington Trust changed its intent to hold its other CDO investment until recovery of its cost basis and subsequently sold this security in January 2014. As a result, Washington Trust recognized an other-than-temporary impairment loss of $717 thousand on this CDO in December 2013. The amortized cost and fair value of this CDO amounted to $547 thousand at December 31, 2013, which equaled the January 2014 sales price. The following table presents a rollforward of the cumulative credit-related impairment losses on debt securities: (Dollars in thousands) Years ended December 31, 2015 2014 2013 Balance at beginning of period $— $— $3,325 Credit-related impairment loss on debt securities for which an other-than-temporary impairment was not previously recognized — — — Additional increases to the amount of credit-related impairment loss on debt securities for which an other-than-temporary impairment was previously recognized — — 3,489 Reductions for securities for which a liquidation notice was received during the period — — (4,868 ) Reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost — — (1,946 ) Balance at end of period $— $— $— |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Summary of Loans | The following is a summary of loans: (Dollars in thousands) December 31, 2015 December 31, 2014 Amount % Amount % Commercial: Mortgages (1) $931,953 31 % $843,978 30 % Construction & development (2) 122,297 4 79,592 3 Commercial & industrial (3) 600,297 20 611,918 21 Total commercial 1,654,547 55 1,535,488 54 Residential real estate: Mortgages 984,437 33 948,731 33 Homeowner construction 29,118 1 36,684 1 Total residential real estate 1,013,555 34 985,415 34 Consumer: Home equity lines 255,565 8 242,480 8 Home equity loans 46,649 2 46,967 2 Other (4) 42,811 1 48,926 2 Total consumer 345,025 11 338,373 12 Total loans (5) $3,013,127 100 % $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) Loans to individuals secured by general aviation aircraft and other personal installment loans. (5) Includes net unamortized loan origination costs of $2.6 million and $2.1 million , respectively, and net unamortized premiums on purchased loans of $84 thousand and $94 thousand , respectively, at December 31, 2015 and 2014 . |
Nonaccrual Loans | The following is a summary of nonaccrual loans, segregated by class of loans: (Dollars in thousands) December 31, 2015 2014 Commercial: Mortgages $5,711 $5,315 Construction & development — — Commercial & industrial 3,018 1,969 Residential real estate: Mortgages 10,666 7,124 Homeowner construction — — Consumer: Home equity lines 528 1,217 Home equity loans 1,124 317 Other — 3 Total nonaccrual loans $21,047 $15,945 Accruing loans 90 days or more past due $— $— |
Past Due Loans | The following tables present an aging analysis of past due loans, segregated by class of loans: (Dollars in thousands) Days Past Due December 31, 2015 30-59 60-89 Over 90 Total Past Due Current Total Loans Commercial: Mortgages $51 $— $4,504 $4,555 $927,398 $931,953 Construction & development — — — — 122,297 122,297 Commercial & industrial 405 9 48 462 599,835 600,297 Residential real estate: Mortgages 3,028 2,964 3,294 9,286 975,151 984,437 Homeowner construction — — — — 29,118 29,118 Consumer: Home equity lines 883 373 518 1,774 253,791 255,565 Home equity loans 748 490 222 1,460 45,189 46,649 Other 22 — — 22 42,789 42,811 Total loans $5,137 $3,836 $8,586 $17,559 $2,995,568 $3,013,127 (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 |
Impaired Loans | The following is a summary of impaired loans: (Dollars in thousands) Recorded Investment (1) Unpaid Principal Related Allowance December 31, 2015 2014 2015 2014 2015 2014 No Related Allowance Recorded: Commercial: Mortgages $4,292 $432 $5,101 $432 $— $— Construction & development — — — — — — Commercial & industrial 1,849 1,047 1,869 1,076 — — Residential real estate: Mortgages 8,441 1,477 8,826 1,768 — — Homeowner construction — — — — — — Consumer: Home equity lines 6 — 64 — — — Home equity loans 530 — 539 — — — Other — — — — — — Subtotal 15,118 2,956 16,399 3,276 — — With Related Allowance Recorded: Commercial: Mortgages 10,873 14,585 10,855 14,564 1,633 927 Construction & development — — — — — — Commercial & industrial 2,024 1,878 2,248 2,437 771 177 Residential real estate: Mortgages 2,895 2,226 2,941 2,338 156 326 Homeowner construction — — — — — — Consumer: Home equity lines 522 250 522 250 2 141 Home equity loans 679 45 783 62 21 12 Other 145 112 144 114 — — Subtotal 17,138 19,096 17,493 19,765 2,583 1,583 Total impaired loans $32,256 $22,052 $33,892 $23,041 $2,583 $1,583 Total: Commercial $19,038 $17,942 $20,073 $18,509 $2,404 $1,104 Residential real estate 11,336 3,703 11,767 4,106 156 326 Consumer 1,882 407 2,052 426 23 153 Total impaired loans $32,256 $22,052 $33,892 $23,041 $2,583 $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 collectability 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 Years ended December 31, 2015 2014 2013 2015 2014 2013 Commercial: Mortgages $14,847 $22,971 $27,496 $327 $658 $630 Construction & development — — — — — — Commercial & industrial 3,415 2,499 6,029 130 126 190 Residential real estate: Mortgages 5,423 4,006 4,024 147 101 125 Homeowner construction — — — — — — Consumer: Home equity lines 228 97 200 1 2 7 Home equity loans 487 100 72 11 4 6 Other 210 119 146 10 8 9 Totals $24,610 $29,792 $37,967 $626 $899 $967 |
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 Years ended December 31, 2015 2014 2015 2014 2015 2014 Commercial: Mortgages 1 — $1,190 $— $1,190 $— Construction & development — — — — — — Commercial & industrial 3 12 584 1,191 584 1,191 Residential real estate: Mortgages 3 4 619 992 619 992 Homeowner construction — — — — — — Consumer: Home equity lines — — — — — — Home equity loans 1 — 70 — 70 — Other 1 — 35 — 35 — Totals 9 16 $2,498 $2,183 $2,498 $2,183 (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) Years ended December 31, 2015 2014 Below-market interest rate concession $335 $77 Payment deferral 903 791 Maturity / amortization concession 70 964 Combination (1) 1,190 351 Total $2,498 $2,183 (1) Loans included in this classification were modified with a combination of any two of the concessions listed in this table. |
Credit Quality Indicators - Commercial | The following table presents the commercial loan portfolio, segregated by category of credit quality indicator: (Dollars in thousands) Pass Special Mention Classified December 31, 2015 2014 2015 2014 2015 2014 Mortgages $914,774 $819,857 $3,035 $18,372 $14,144 $5,749 Construction & development 122,297 79,592 — — — — Commercial & industrial 577,036 592,206 12,012 16,311 11,249 3,401 Total commercial loans $1,614,107 $1,491,655 $15,047 $34,683 $25,393 $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 December 31, 2015 2014 2015 2014 Residential real estate: Accruing mortgages $973,771 $941,607 $— $— Nonaccrual mortgages 7,372 3,840 3,294 3,284 Homeowner construction 29,118 36,684 — — Total residential loans $1,010,261 $982,131 $3,294 $3,284 Consumer: Home equity lines $255,047 $241,639 $518 $841 Home equity loans 46,427 46,911 222 56 Other 42,811 48,926 — — Total consumer loans $344,285 $337,476 $740 $897 |
Analysis of Loan Servicing Rights | The following table presents an analysis of loan servicing rights: (Dollars in thousands) Loan Servicing Rights Valuation Allowance Total Balance at December 31, 2012 $1,275 ($165 ) $1,110 Loan servicing rights capitalized 1,897 — 1,897 Amortization (405 ) — (405 ) Decrease in impairment reserve — 96 96 Balance at December 31, 2013 2,767 (69 ) 2,698 Loan servicing rights capitalized 869 — 869 Amortization (647 ) — (647 ) Decrease in impairment reserve — 67 67 Balance at December 31, 2014 2,989 (2 ) 2,987 Loan servicing rights capitalized 1,406 — 1,406 Amortization (1,047 ) — (1,047 ) Decrease in impairment reserve — 1 1 Balance at December 31, 2015 $3,348 ($1 ) $3,347 |
Amortization Expense Related to Loan Servicing Assets | The following table presents estimated aggregate amortization expense related to loan servicing assets: (Dollars in thousands) Years ending December 31: 2016 $1,008 2017 701 2018 491 2019 343 2020 241 Thereafter 564 Total estimated amortization expense $3,348 |
Loans Serviced for Others, by Type of Loan | The following table presents the balance of loans serviced for others, by type of loan: (Dollars in thousands) December 31, 2015 2014 Residential mortgages $458,629 $378,798 Commercial loans 109,173 90,484 Total $567,802 $469,282 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Allowance for Loan Losses Rollforward Analysis | The following table presents the activity in the allowance for loan losses for the year ended December 31, 2015 : (Dollars in thousands) Commercial Mortgages Construction C&I (1) Total Commercial Residential Consumer Unallocated Total Beginning Balance $8,202 $1,300 $7,987 $17,489 $5,430 $2,713 $2,391 $28,023 Charge-offs (809 ) — (671 ) (1,480 ) (207 ) (618 ) — (2,305 ) Recoveries 92 — 87 179 28 94 — 301 Provision 1,655 458 799 2,912 209 320 (2,391 ) 1,050 Ending Balance $9,140 $1,758 $8,202 $19,100 $5,460 $2,509 $— $27,069 (1) Commercial & industrial loans. The following table presents the activity in the allowance for loan losses for the year ended December 31, 2014 : (Dollars in thousands) Commercial Mortgages Construction C&I (1) Total Commercial Residential Consumer Unallocated Total Beginning Balance $8,022 $383 $7,835 $16,240 $6,450 $2,511 $2,685 $27,886 Charge-offs (977 ) — (558 ) (1,535 ) (132 ) (282 ) — (1,949 ) Recoveries 24 — 86 110 51 75 — 236 Provision 1,133 917 624 2,674 (939 ) 409 (294 ) 1,850 Ending Balance $8,202 $1,300 $7,987 $17,489 $5,430 $2,713 $2,391 $28,023 (1) Commercial & industrial loans. The following table presents the activity in the allowance for loan losses for the year ended December 31, 2013 : (Dollars in thousands) Commercial Mortgages Construction C&I (1) Total Commercial Residential Consumer Unallocated Total Beginning Balance $9,817 $224 $8,934 $18,975 $6,428 $2,684 $2,786 $30,873 Charge-offs (5,213 ) — (358 ) (5,571 ) (128 ) (323 ) — (6,022 ) Recoveries 380 — 153 533 3 99 — 635 Provision 3,038 159 (894 ) 2,303 147 51 (101 ) 2,400 Ending Balance $8,022 $383 $7,835 $16,240 $6,450 $2,511 $2,685 $27,886 (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 losses by portfolio segment and by impairment methodology. See disclosure above regarding the reclassification of the unallocated allowance in 2015. (Dollars in thousands) December 31, 2015 December 31, 2014 Related Allowance Related Allowance Loans Loans Loans Individually Evaluated For Impairment: Commercial: Mortgages $15,141 $1,633 $14,991 $927 Construction & development — — — — Commercial & industrial 3,871 771 2,921 177 Residential Real Estate 11,333 156 3,698 326 Consumer 1,881 23 409 153 Subtotal 32,226 2,583 22,019 1,583 Loans Collectively Evaluated For Impairment: Commercial: Mortgages 916,812 7,507 828,987 7,275 Construction & development 122,297 1,758 79,592 1,300 Commercial & industrial 596,426 7,431 608,997 7,810 Residential Real Estate 1,002,222 5,304 981,717 5,104 Consumer 343,144 2,486 337,964 2,560 Subtotal 2,980,901 24,486 2,837,257 24,049 Unallocated — — — 2,391 Total $3,013,127 $27,069 $2,859,276 $28,023 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Summary of Premises and Equipment | The following presents a summary of premises and equipment: (Dollars in thousands) December 31, 2015 2014 Land and improvements $6,020 $6,020 Premises and improvements 36,358 34,608 Furniture, fixtures and equipment 27,420 25,041 69,798 65,669 Less accumulated depreciation 40,205 38,174 Total premises and equipment, net $29,593 $27,495 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Carrying Value of Goodwill | The following table presents the carrying value of goodwill at the reporting unit (or business segment) level: (Dollars in thousands) December 31, 2015 December 31, 2014 Commercial Banking Segment $22,591 $22,591 Wealth Management Services Segment 41,468 35,523 Total $64,059 $58,114 |
Schedule of Carrying Value of Other Intangible Assets | The following table presents the components of intangible assets: (Dollars in thousands) December 31, 2015 December 31, 2014 Advisory Contracts Non-compete Agreements Advisory Contracts Non-compete Agreements Gross carrying amount $20,803 $369 $13,657 $— Accumulated amortization 9,610 102 8,808 — Net amount $11,193 $267 $4,849 $— |
Schedule of Estimated Annual Amortization Expense | The following table presents estimated annual amortization expense for intangible assets at December 31, 2015 : (Dollars in thousands) Advisory Contracts Non-compete Agreements Total Years ending December 31, 2016 $1,038 $246 $1,284 2017 1,014 21 1,035 2018 979 — 979 2019 943 — 943 2020 914 — 914 2021 and thereafter 6,305 — 6,305 |
Income Tax Expense (Tables)
Income Tax Expense (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | The following table presents the components of income tax expense: (Dollars in thousands) Years ended December 31, 2015 2014 2013 Current tax expense: Federal $17,864 $16,286 $13,518 State 1,194 866 742 Total current tax expense 19,058 17,152 14,260 Deferred tax expense (benefit): Federal 2,003 1,820 2,300 State (183 ) 27 (33 ) Total deferred tax expense 1,820 1,847 2,267 Total income tax expense $20,878 $18,999 $16,527 |
Schedule of Effective Income Tax Rate Reconciliation | Total income tax expense varies from the amount determined by applying the Federal income tax rate to income before income taxes. The following table presents the reasons for the differences: (Dollars in thousands) Years ended December 31, 2015 2014 2013 Tax expense at Federal statutory rate $22,520 $20,938 $18,438 (Decrease) increase in taxes resulting from: Tax-exempt income (1,604 ) (1,540 ) (1,408 ) Dividends received deduction (57 ) (29 ) — BOLI (694 ) (646 ) (648 ) Federal tax credits (364 ) (364 ) (364 ) Acquisition related expenses 318 — — State income tax expense, net of federal income tax benefit 658 581 461 Other 101 59 48 Total income tax expense $20,878 $18,999 $16,527 |
Schedule of Deferred Tax Assets and Liabilities | The following table presents the approximate tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities: (Dollars in thousands) December 31, 2015 2014 Deferred tax assets: Allowance for loan losses $10,015 $10,116 Defined benefit pension obligations 3,447 6,719 Deferred compensation 3,181 2,761 Deferred loan origination fees 2,001 1,822 Stock based compensation 1,772 1,676 Other 3,547 3,026 Deferred tax assets 23,963 26,120 Deferred tax liabilities: Net unrealized gains on securities available for sale (617 ) (2,373 ) Amortization of intangibles (4,240 ) (1,750 ) Deferred loan origination costs (5,089 ) (4,694 ) Loan servicing rights (1,238 ) (1,078 ) Other (1,009 ) (1,206 ) Deferred tax liabilities (12,193 ) (11,101 ) Net deferred tax asset $11,770 $15,019 |
Time Certificates of Deposit (T
Time Certificates of Deposit (Tables) | 12 Months Ended |
Dec. 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 Years ending December 31: 2016 $329,764 0.67 % 2017 190,552 1.04 2018 93,974 1.30 2019 140,261 1.72 2020 79,278 1.63 2021 and thereafter 69 2.49 Balance at December 31, 2015 $833,898 1.09 % |
Schedule of Time Certificates of Deposit $100 Thousand or More Maturities | The following table presents the amount of time certificates of deposit in denominations of $100 thousand or more at December 31, 2015 , maturing during the periods indicated: (Dollars in thousands) January 1, 2016 to March 31, 2016 $82,083 April 1, 2016 to June 30, 2016 24,919 July 1, 2016 to December 31, 2016 31,621 January 1, 2017 and beyond 119,236 Balance at December 31, 2015 $257,859 Time certificates of deposit in denominations of $250 thousand or more totaled $45.1 million and $45.7 million , respectively, at December 31, 2015 and 2014 . |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
FHLBB Advances Maturity Summary | The following table presents scheduled maturities and weighted average interest rates on FHLBB advances outstanding as of December 31, 2015 : (Dollars in thousands) Scheduled Maturity Weighted Average Rate 2016 $141,292 0.68 % 2017 37,575 2.52 2018 83,134 2.26 2019 42,661 3.79 2020 27,733 2.30 2021 and thereafter 46,578 4.16 Total $378,973 2.11 % |
FHLBB Advances Maturity Summary Modification | The table below presents the original terms as of December 31, 2015 , as well as revised terms associated with these FHLBB advances: (Dollars in thousands) Original Terms Revised Terms Scheduled Weighted Scheduled Weighted 2017 $10,000 3.29 % $— — % 2018 35,000 3.14 — — 2019 14,403 4.46 — — 2020 — — 5,000 2.71 2021 — — 20,000 2.63 2022 — — 25,830 3.06 2023 — — 8,573 3.90 Total $59,403 3.48 % $59,403 3.01 % |
Schedule of Short-Term FHLBB Advances | The following table presents certain information concerning short-term FHLBB advances: (Dollars in thousands) As of and for the years ended December 31, 2015 2014 2013 Average amount outstanding during the period $155,874 $70,693 $13,901 Amount outstanding at end of period $107,500 $200,000 $— Highest month end balance during period $229,500 $200,000 $60,000 Weighted-average interest rate at end of period 0.55 % 0.37 % — % Weighted-average interest rate during the period 0.38 % 0.35 % 0.30 % |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Regulatory Capital Requirements | The following table presents the Corporation’s and the Bank’s actual capital amounts and ratios, as well as the corresponding minimum and well capitalized regulatory amounts and ratios that were in effect during the respective periods: (Dollars in thousands) Actual For Capital Adequacy Purposes To Be “Well Capitalized” Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio December 31, 2015 Total Capital (to Risk-Weighted Assets): Corporation $367,443 12.58 % $233,739 8.00 % N/A N/A Bank 366,676 12.55 233,676 8.00 292,095 10.00 Tier 1 Capital (to Risk-Weighted Assets): Corporation 340,130 11.64 175,304 6.00 N/A N/A Bank 339,363 11.62 175,257 6.00 233,676 8.00 Common Equity Tier 1 Capital (to Risk-Weighted Assets): (1) Corporation 318,131 10.89 131,478 4.50 N/A N/A Bank 339,363 11.62 131,443 4.50 189,861 6.50 Tier 1 Capital (to Average Assets): (2) Corporation 340,130 9.37 145,191 4.00 N/A N/A Bank 339,363 9.36 145,103 4.00 181,378 5.00 December 31, 2014 Total Capital (to Risk-Weighted Assets): Corporation 343,934 12.56 219,149 8.00 N/A N/A Bank 339,268 12.39 219,075 8.00 273,844 10.00 Tier 1 Capital (to Risk-Weighted Assets): Corporation 315,575 11.52 109,574 4.00 N/A N/A Bank 310,909 11.35 109,537 4.00 164,306 6.00 Tier 1 Capital (to Average Assets): (2) Corporation 315,575 9.14 138,090 4.00 N/A N/A Bank 310,909 9.01 137,964 4.00 172,454 5.00 (1) New capital ratio effective January 1, 2015 under the Basel III capital requirements. (2) Leverage ratio. |
Derivative Financial Instrume42
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 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 December 31, Balance Sheet Location 2015 2014 Balance Sheet Location 2015 2014 Derivatives Designated as Cash Flow Hedging Instruments: Interest rate risk management contract: Interest rate swap contracts Other assets $— $— Other liabilities $— $497 Interest rate caps Other assets 187 — Other liabilities — — Derivatives not Designated as Hedging Instruments: Forward loan commitments: Interest rate lock commitments Other assets 1,220 1,212 Other liabilities — 20 Commitments to sell mortgage loans Other assets — 13 Other liabilities 2,012 2,028 Loan related derivative contracts: Interest rate swaps with customers Other assets 8,027 4,554 Other liabilities — 23 Mirror swaps with counterparties Other assets — 28 Other liabilities 8,266 4,748 Risk participation agreements Other assets 56 — Other liabilities 69 — Total $9,490 $5,807 $10,347 $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 Corporations’ 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) Years ended December 31, 2015 2014 2013 2015 2014 2013 Derivatives Designated as Cash Flow Hedging Instruments: Interest rate risk management contracts: Interest rate swap contracts $288 $331 $388 Interest Expense $— $— $— Interest rate caps (44 ) — — Interest Expense — — — Total $244 $331 $388 $— $— $— (Dollars in thousands) Amount of Gain (Loss) Recognized in Income on Derivative Years ended December 31, Statement of Income Location 2015 2014 2013 Derivatives not Designated as Hedging Instruments: Forward loan commitments: Interest rate lock commitments Mortgage banking revenues $28 $800 ($2,121 ) Commitments to sell mortgage loans Mortgage banking revenues 3 (1,442 ) 3,618 Loan related derivative contracts: Interest rate swaps with customers Loan related derivative income 7,569 4,989 396 Mirror swaps with counterparties Loan related derivative income (4,904 ) (3,853 ) 555 Risk participation agreements Loan related derivative income (224 ) — — Total $2,472 $494 $2,448 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Mortgage Loans Held For Sale, Interest Rate Lock Commitments and Commitments to Sell | 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 mortgage banking revenues in the Consolidated Statements of Income. (Dollars in thousands) Years ended December 31, 2015 2014 2013 Mortgage loans held for sale ($48 ) $598 ($1,505 ) Interest rate lock commitments 28 800 (2,121 ) Commitments to sell 3 (1,442 ) 3,618 Total changes in fair value ($17 ) ($44 ) ($8 ) |
Assets and Liabilities Measured 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 (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs (Level 3) December 31, 2015 Assets: Securities available for sale: Obligations of U.S. government-sponsored enterprises $77,015 $— $77,015 $— Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 234,856 — 234,856 — Obligations of states and political subdivisions 36,080 — 36,080 — Individual name issuer trust preferred debt securities 25,138 — 25,138 — Corporate bonds 1,955 — 1,955 — Mortgage loans held for sale 33,969 — 33,969 — Derivative assets (1) 9,490 — 9,490 — Total assets at fair value on a recurring basis $418,503 $— $418,503 $— Liabilities: Derivative liabilities (2) $10,347 $— $10,347 $— Contingent Consideration Liability (3) 2,945 — — 2,945 Total liabilities at fair value on a recurring basis $13,292 $— $10,347 $2,945 (1) Derivative assets include interest rate risk management agreements, interest rate swap contracts with customers, risk participation-out agreements and forward loan commitments and are included in other assets in the Consolidated Balance Sheets. (2) Derivative liabilities include mirror swaps with counterparties, risk participation-in agreements and forward loan commitments and are included in other liabilities in the Consolidated Balance Sheets. (3) The contingent consideration liability is included in other liabilities in the Consolidated Balance Sheets. (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs (Level 3) December 31, 2014 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 swap 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 agreements and forward loan commitments and are included in other liabilities in the Consolidated Balance Sheets. |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | The following table presents the carrying value of assets held at December 31, 2015 , which were written down to fair value during the year ended December 31, 2015 : (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Collateral dependent impaired loans $10,545 $— $— $10,545 Property acquired through foreclosure or repossession 270 — — 270 Total assets at fair value on a nonrecurring basis $10,815 $— $— $10,815 The allowance for loan losses on the collateral dependent impaired loans amounted to $2.4 million at December 31, 2015 . The following table summarizes the carrying value of 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 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 the collateral dependent impaired loans amounted to $1.3 million at December 31, 2014 . |
Qualitative 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) December 31, 2015 Collateral dependent impaired loans $10,545 Appraisals of collateral Discount for costs to sell 0% - 20% (2%) Property acquired through foreclosure or repossession 270 Appraisals of collateral Discount for costs to sell 12% Appraisal adjustments (1) 32% (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, Estimated Fair Values and Fair Value Hierarchy 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) Carrying Amount Total Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs (Level 3) December 31, 2015 Financial Assets: Securities held to maturity $20,023 $20,516 $— $20,516 $— Loans, net of allowance for loan losses 2,986,058 3,004,782 — — 3,004,782 Financial Liabilities: Time deposits $833,898 $834,574 $— $834,574 $— FHLBB advances 378,973 388,275 — 388,275 — Junior subordinated debentures 22,681 16,468 — 16,468 — (Dollars in thousands) Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs (Level 3) December 31, 2014 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 — |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Projected Benefit Obligations, Fair Value of Plan Assets and Unfunded Status | The following table presents the plans’ projected benefit obligations, fair value of plan assets and unfunded status: (Dollars in thousands) Qualified Pension Plan Non-Qualified Retirement Plans At December 31, 2015 2014 2015 2014 Change in Benefit Obligation: Benefit obligation at beginning of period $73,149 $61,162 $13,097 $10,784 Service cost 2,459 2,152 78 46 Interest cost 2,928 2,891 490 478 Actuarial (gain) loss (5,410 ) 11,081 88 2,546 Benefits paid (5,430 ) (3,981 ) (738 ) (757 ) Administrative expenses (146 ) (156 ) — — Benefit obligation at end of period 67,550 73,149 13,015 13,097 Change in Plan Assets: Fair value of plan assets at beginning of period 67,613 62,060 — — Actual return on plan assets 673 3,690 — — Employer contributions 3,000 6,000 738 757 Benefits paid (5,430 ) (3,981 ) (738 ) (757 ) Administrative expenses (146 ) (156 ) — — Fair value of plan assets at end of period 65,710 67,613 — — Unfunded status at end of period ($1,840 ) ($5,536 ) ($13,015 ) ($13,097 ) |
Schedule of Components of Accumulated Other Comprehensive Income (Loss) Related to Retirements Plans | The following table presents components of accumulated other comprehensive income related to the qualified pension plan and non-qualified retirement plans, on a pre-tax basis: (Dollars in thousands) Qualified Pension Plan Non-Qualified Retirement Plans At December 31, 2015 2014 2015 2014 Net actuarial loss $12,688 $15,504 $4,392 $4,548 Prior service credit (84 ) (107 ) (2 ) (3 ) Total pre-tax amounts recognized in accumulated other comprehensive income $12,604 $15,397 $4,390 $4,545 |
Schedule of Net Periodic Benefit Costs and Other Amounts Recognized in Other Comprehensive Income (Loss) | The following table presents components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss), on a pre-tax basis: (Dollars in thousands) Qualified Pension Plan Non-Qualified Retirement Plans Years ended December 31, 2015 2014 2013 2015 2014 2013 Net Periodic Benefit Cost: Service cost $2,459 $2,152 $2,720 $78 $46 $181 Interest cost 2,928 2,891 2,883 490 478 462 Expected return on plan assets (4,515 ) (4,063 ) (3,725 ) — — — Amortization of prior service credit (23 ) (23 ) (30 ) (1 ) (1 ) (1 ) Recognized net actuarial loss 1,249 461 1,321 245 70 175 Curtailments — — (61 ) — — (1 ) Net periodic benefit cost 2,098 1,418 3,108 812 593 816 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (on a pre-tax basis): Net (gain) loss (2,816 ) 10,993 (14,572 ) (156 ) 2,476 (1,506 ) Prior service cost 23 23 30 1 1 1 Curtailments — — (4,000 ) — — (359 ) Recognized in other comprehensive (loss) income (2,793 ) 11,016 (18,542 ) (155 ) 2,477 (1,864 ) Total recognized in net periodic benefit cost and other comprehensive (loss) income ($695 ) $12,434 ($15,434 ) $657 $3,070 ($1,048 ) |
Schedule of Assumptions Used | The following table presents the measurement date and weighted-average assumptions used to determine benefit obligations at December 31, 2015 and 2014 : Qualified Pension Plan Non-Qualified Retirement Plans 2015 2014 2015 2014 Measurement date Dec 31, 2015 Dec 31, 2014 Dec 31, 2015 Dec 31, 2014 Discount rate 4.480% 4.125% 4.200% 3.900% Rate of compensation increase 3.750 3.750 3.750 3.750 The following table presents the measurement date and weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31, 2015 , 2014 and 2013 : Qualified Pension Plan Non-Qualified Retirement Plans 2015 2014 2013 2015 2014 2013 Measurement date Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Discount rate 4.125% 4.875% 4.125% 3.900% 4.600% 3.800% Expected long-term return on plan assets 7.250 7.250 7.250 — — — Rate of compensation increase 3.750 3.750 3.750 3.750 3.750 3.750 |
Schedule of Fair Value and Allocation of Plan Assets | The following table present the asset allocations of the qualified pension plan, by asset category: December 31, 2015 2014 Asset Category: Equity securities 63.4 % 61.6 % Fixed income securities 34.6 37.8 Cash and cash equivalents 2.0 0.6 Total 100.0 % 100.0 % The following tables present the fair values of the qualified pension plan’s assets: (Dollars in thousands) Fair Value Measurements Using Assets at Fair Value December 31, 2015 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $1,598 $— $— $1,598 Obligations of U.S. government agencies and U.S. government-sponsored enterprises — 3,306 — 3,306 Obligations of states and political subdivisions — 3,438 — 3,438 Corporate bonds — 12,955 — 12,955 Common stocks 29,433 — — 29,433 Mutual funds 14,980 — — 14,980 Total plan assets $46,011 $19,699 $— $65,710 (Dollars in thousands) Fair Value Measurements Using Assets at Fair Value December 31, 2014 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $637 $— $— $637 Obligations of U.S. government agencies and U.S. government-sponsored enterprises — 4,197 — 4,197 Obligations of states and political subdivisions — 2,953 — 2,953 Corporate bonds — 13,162 — 13,162 Common stocks 31,172 — — 31,172 Mutual funds 15,492 — — 15,492 Total plan assets $47,301 $20,312 $— $67,613 |
Schedule of Expected Future Benefit Payments | The following table presents the benefit payments, which reflect expected future service, as appropriate, expected to be paid: (Dollars in thousands) Qualified Pension Plan Non-Qualified Plans 2016 $4,401 $788 2017 2,992 782 2018 3,222 775 2019 3,032 804 2020 3,896 896 Years 2021 - 2025 21,768 4,304 |
Share-Based Compensation Arra45
Share-Based Compensation Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Compensation Cost for Share-based Compensation Arrangements | The following table presents the amounts recognized in the consolidated financial statements for stock options, nonvested share awards and nonvested performance shares: (Dollars in thousands) Years ended December 31, 2015 2014 2013 Share-based compensation expense $2,074 $1,880 $1,876 Related income tax benefit $767 $676 $673 |
Stock Options Fair Value Assumptions | The following presents the assumptions used in determining the grant date fair value of the stock option awards granted to certain key employees: 2015 2014 2013 Options granted 48,600 25,850 54,600 Cliff vesting period (years) 3 - 5 3 3 Expected term (years) 7.5 8 8 Expected dividend yield 3.94 % 3.83 % 3.77 % Weighted average expected volatility 40.76 % 41.84 % 42.85 % Weighted average risk-free interest rate 1.95 % 2.27 % 2.46 % Weighted average grant-date fair value $11.15 $9.92 $10.35 |
Stock Options Activity | The following table presents a summary of the status of Washington Trust’s stock options outstanding as of and for the year ended December 31, 2015 : Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (000’s) Beginning of period 357,477 $24.99 Granted 48,600 39.40 Exercised (87,625 ) 25.55 Forfeited or expired (9,336 ) 33.74 End of period 309,116 $26.84 6.01 $3,921 At end of period: Options exercisable 189,791 $21.78 4.34 $3,368 Options expected to vest in future periods 119,325 $34.89 8.67 $554 |
Schedule of Stock Options Outstanding and Options Exercisable | The following table presents additional information concerning options outstanding and options exercisable at December 31, 2015 : Options Outstanding Options Exercisable Exercise Price Ranges Number of Shares Weighted Average Remaining Life (Years) Weighted Average Exercise Price Number of Shares Weighted Average Exercise Price $15.01 to $20.00 53,132 3.90 $17.61 53,132 $17.61 $20.01 to $25.00 138,870 4.67 23.14 131,870 23.05 $25.01 to $30.00 — — — — — $30.01 to $35.00 70,214 7.77 32.76 4,689 32.76 $35.01 to $40.00 46,900 9.74 39.39 100 39.55 309,116 6.01 $26.84 189,791 $21.78 |
Nonvested Share Units Activity | The following table presents a summary of the status of Washington Trust’s nonvested shares as of and for the year ended December 31, 2015 : Number of Shares Weighted Average Grant Date Fair Value Beginning of period 70,430 $27.34 Granted 16,275 38.53 Vested (34,779 ) 23.95 Forfeited (4,701 ) 29.72 End of period 47,225 $33.46 |
Nonvested Performance Shares Outstanding | The following table presents a summary of the performance share awards as of December 31, 2015 : Grant Date Fair Value per Share Current Performance Assumption Expected Performance Share Award Performance shares awarded in: 2015 $38.02 152% 47,451 2014 34.66 139% 21,049 2013 26.05 141% 42,391 Total 110,891 |
Nonvested Performance Shares Activity | The following table presents a summary of the status of Washington Trust’s performance share awards as of and for the year ended December 31, 2015 : Number of Shares Weighted Average Grant Date Fair Value Beginning of period 99,696 $27.12 Granted 47,451 38.02 Vested (35,743 ) 23.65 Forfeited (513 ) 30.39 End of period 110,891 $32.81 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Statement of Operations and Total Assets by Reportable Segment | The following tables present the statement of operations and total assets for Washington Trust’s reportable segments: (Dollars in thousands) Year ended December 31, 2015 Commercial Banking Wealth Management Services Corporate Consolidated Total Net interest income (expense) $84,757 ($47 ) $19,272 $103,982 Provision for loan losses 1,050 — — 1,050 Net interest income (expense) after provision for loan losses 83,707 (47 ) 19,272 102,932 Noninterest income 20,618 35,416 2,306 58,340 Noninterest expenses: Depreciation and amortization expense 2,584 1,488 213 4,285 Other noninterest expenses 55,203 25,632 11,809 92,644 Total noninterest expenses 57,787 27,120 12,022 96,929 Income before income taxes 46,538 8,249 9,556 64,343 Income tax expense 15,330 3,475 2,073 20,878 Net income $31,208 $4,774 $7,483 $43,465 Total assets at period end $3,152,231 $63,801 $555,572 $3,771,604 Expenditures for long-lived assets 4,714 411 354 5,479 (Dollars in thousands) Year ended December 31, 2014 Commercial Banking Wealth Management Services Corporate Consolidated Total Net interest income (expense) $80,500 ($24 ) $19,029 $99,505 Provision for loan losses 1,850 — — 1,850 Net interest income (expense) after provision for loan losses 78,650 (24 ) 19,029 97,655 Noninterest income 17,575 33,378 8,062 59,015 Noninterest expenses: Depreciation and amortization expense 2,447 1,127 203 3,777 Other noninterest expenses 52,639 22,386 18,045 93,070 Total noninterest expenses 55,086 23,513 18,248 96,847 Income before income taxes 41,139 9,841 8,843 59,823 Income tax expense 13,497 3,724 1,778 18,999 Net income $27,642 $6,117 $7,065 $40,824 Total assets at period end $2,986,453 $52,720 $547,701 $3,586,874 Expenditures for long-lived assets 3,474 1,578 174 5,226 (Dollars in thousands) Year ended December 31, 2013 Commercial Banking Wealth Management Services Corporate Consolidated Total Net interest income $79,633 $7 $12,145 $91,785 Provision for loan losses 2,400 — — 2,400 Net interest income after provision for loan losses 77,233 7 12,145 89,385 Noninterest income (expense) 30,769 31,825 (514 ) 62,080 Noninterest expenses: Depreciation and amortization expense 2,473 1,277 213 3,963 Other noninterest expenses 61,976 20,494 12,352 94,822 Total noninterest expenses 64,449 21,771 12,565 98,785 Income (loss) before income taxes 43,553 10,061 (934 ) 52,680 Income tax expense (benefit) 14,598 3,724 (1,795 ) 16,527 Net income $28,955 $6,337 $861 $36,153 Total assets at period end $2,517,059 $50,297 $621,511 $3,188,867 Expenditures for long-lived assets 1,286 112 93 1,491 |
Other Comprehensive Income (L47
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Activity in Other Comprehensive Income (Loss) | The following tables present the activity in other comprehensive income (loss): (Dollars in thousands) Year ended December 31, 2015 Pre-tax Amounts Income Taxes Net of Tax Securities available for sale: Net change in fair value of securities available for sale ($4,926 ) ($1,755 ) ($3,171 ) Cash flow hedges: Changes in fair value of cash flow hedges (102 ) (49 ) (53 ) Net cash flow hedge losses reclassified into earnings (1) 469 172 297 Net change in the fair value of cash flow hedges 367 123 244 Defined benefit plan obligation adjustment (2) 2,948 911 2,037 Total other comprehensive loss ($1,611 ) ($721 ) ($890 ) (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. (Dollars in thousands) Year ended December 31, 2014 Pre-tax Amounts Income Taxes Net of Tax Securities available for sale: Net change in fair value of securities available for sale $1,601 $580 $1,021 Cash flow hedges: Changes in fair value of cash flow hedges (56 ) (18 ) (38 ) Net cash flow hedge losses reclassified into earnings (1) 577 208 369 Net change in the fair value of cash flow hedges 521 190 331 Defined benefit plan obligation adjustment (2) (13,493 ) (4,885 ) (8,608 ) Total other comprehensive loss ($11,371 ) ($4,115 ) ($7,256 ) (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. (Dollars in thousands) Year ended December 31, 2013 Pre-tax Amounts Income Taxes Net of Tax Securities available for sale: Changes in fair value of securities available for sale ($10,586 ) ($3,890 ) ($6,696 ) Net gains on securities classified into earnings (1) 294 106 188 Net change in fair value of securities available for sale (10,292 ) (3,784 ) (6,508 ) Reclassification adjustment for other-than-temporary impairment losses transferred into earnings (2) 3,195 1,258 1,937 Cash flow hedges: Changes in fair value of cash flow hedges (58 ) (23 ) (35 ) Net cash flow hedge losses reclassified into earnings (3) 657 234 423 Net change in the fair value of cash flow hedges 599 211 388 Defined benefit plan obligation adjustment (4) 20,406 7,277 13,129 Total other comprehensive income $13,908 $4,962 $8,946 (1) Reported as net realized gains on securities and total other-than-temporary impairment losses on securities in the Consolidated Statements of Income. (2) Reported as the portion of loss recognized in other comprehensive income in the Consolidated Statements of Income. (3) Included in interest expense on junior subordinated debentures in the Consolidated Statements of Income. (4) Included in salaries and employee benefits expense in the Consolidated Statements of Income. |
Changes in Components of Accumulated Other Comprehensive Income (Loss) | 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 $4,222 $— ($287 ) ($12,744 ) ($8,809 ) Other comprehensive loss before reclassifications (3,171 ) — (53 ) — (3,224 ) Amounts reclassified from accumulated other comprehensive income — — 297 2,037 2,334 Net other comprehensive (loss) income (3,171 ) — 244 2,037 (890 ) Balance at December 31, 2015 $1,051 $— ($43 ) ($10,707 ) ($9,699 ) (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 $3,201 $— ($618 ) ($4,136 ) ($1,553 ) Other comprehensive income (loss) before reclassifications 1,021 — (38 ) — 983 Amounts reclassified from accumulated other comprehensive income — — 369 (8,608 ) (8,239 ) Net other comprehensive income (loss) 1,021 — 331 (8,608 ) (7,256 ) Balance at December 31, 2014 $4,222 $— ($287 ) ($12,744 ) ($8,809 ) (Dollars in thousands) Net Unrealized Gains on Available For Sale Securities Noncredit -related Impairment Net Unrealized Losses on Cash Flow Hedges Pension Benefit Adjustment Total Balance at December 31, 2012 $9,709 ($1,937 ) ($1,006 ) ($17,265 ) ($10,499 ) Other comprehensive loss before reclassifications (6,808 ) — (35 ) — (6,843 ) Amounts reclassified from accumulated other comprehensive income 300 1,937 423 13,129 15,789 Net other comprehensive (loss) income (6,508 ) 1,937 388 13,129 8,946 Balance at December 31, 2013 $3,201 $— ($618 ) ($4,136 ) ($1,553 ) |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 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) Years ended December 31, 2015 2014 2013 Earnings per common share - basic: Net income $43,465 $40,824 $36,153 Less dividends and undistributed earnings allocated to participating securities (126 ) (152 ) (156 ) Net income applicable to common shareholders 43,339 40,672 35,997 Weighted average common shares 16,879 16,689 16,506 Earnings per common share - basic $2.57 $2.44 $2.18 Earnings per common share - diluted: Net income $43,465 $40,824 $36,153 Less dividends and undistributed earnings allocated to participating securities (126 ) (151 ) (155 ) Net income applicable to common shareholders 43,339 40,673 35,998 Weighted average common shares 16,879 16,689 16,506 Dilutive effect of common stock equivalents 188 183 158 Weighted average diluted common shares 17,067 16,872 16,664 Earnings per common share - diluted $2.54 $2.41 $2.16 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Financial Instruments with Off Balance Sheet Risk | The following table presents the contractual and notional amounts of financial instruments with off-balance sheet risk: (Dollars in thousands) December 31, 2015 2014 Financial instruments whose contract amounts represent credit risk: Commitments to extend credit: Commercial loans $360,795 $325,402 Home equity lines 219,427 200,932 Other loans 44,164 48,551 Standby letters of credit 5,629 5,102 Financial instruments whose notional amounts exceed the amount of credit risk: Forward loan commitments: Interest rate lock commitments 49,712 40,015 Commitments to sell mortgage loans 87,498 84,808 Loan related derivative contracts: Interest rate swaps with customers 302,142 165,795 Mirror swaps with counterparties 302,142 165,795 Risk participation-in agreements 21,474 — Interest rate risk management contracts: Interest rate swaps — 22,681 |
Schedule of Future Minimum Annual Lease Payments | The following table presents the minimum annual lease payments under the terms of these leases, exclusive of renewal provisions: (Dollars in thousands) Years ending December 31: 2016 $3,110 2017 2,841 2018 2,551 2019 2,273 2020 1,631 2021 and thereafter 25,535 Total minimum lease payments $37,941 |
Parent Company Financial Stat50
Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Company Only Balance Sheet | The following tables present parent company only financial statements of the Bancorp, reflecting the investment in the Bank on the equity basis of accounting. The Statements of Changes in Shareholders’ Equity for the parent company only are identical to the Consolidated Statements of Changes in Shareholders’ Equity and are therefore not presented. Balance Sheets (Dollars in thousands, except par value) December 31, 2015 2014 Assets: Cash on deposit with bank subsidiary $3,169 $2,998 Interest-bearing balances due from banks — 939 Investment in subsidiaries at equity value 398,520 365,766 Dividends receivable from subsidiaries 5,082 5,101 Other assets 377 311 Total assets $407,148 $375,115 Liabilities: Junior subordinated debentures $22,681 $22,681 Dividends payable 6,075 5,617 Contingent consideration liability 2,945 — Other liabilities 59 538 Total liabilities 31,760 28,836 Shareholders’ Equity: Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 17,019,578 shares in 2015 and 16,746,363 shares in 2014 1,064 1,047 Paid-in capital 110,949 101,204 Retained earnings 273,074 252,837 Accumulated other comprehensive loss (9,699 ) (8,809 ) Total shareholders’ equity 375,388 346,279 Total liabilities and shareholders’ equity $407,148 $375,115 |
Parent Company Only Income Statement | Statements of Income (Dollars in thousands) Years ended December 31, 2015 2014 2013 Income: Dividends from subsidiaries $23,399 $20,116 $24,481 Other income 13 13 20 Total income 23,412 20,129 24,501 Expenses: Interest on junior subordinated debentures 871 964 1,484 Legal and professional fees 134 96 145 Acquisition related expenses 308 — — Other 295 253 279 Total expenses 1,608 1,313 1,908 Income before income taxes 21,804 18,816 22,593 Income tax benefit 557 454 661 Income before equity in undistributed earnings of subsidiaries 22,361 19,270 23,254 Equity in undistributed earnings of subsidiaries 21,104 21,554 12,899 Net income $43,465 $40,824 $36,153 |
Parent Company Only Cash Flow Statement | Statements of Cash Flows (Dollars in thousands) Years ended December 31, 2015 2014 2013 Cash flow from operating activities: Net income $43,465 $40,824 $36,153 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiary (21,104 ) (21,554 ) (12,899 ) Increase in dividend receivable 19 (495 ) (408 ) Decrease in other assets (67 ) 183 397 Decrease in accrued expenses and other liabilities 2,466 (516 ) (621 ) Other, net (3,363 ) (245 ) (214 ) Net cash provided by operating activities 21,416 18,197 22,408 Cash flows from investing activities: Repayment of equity investment in capital trust — — 310 Cash used in business combination, net of cash acquired (1,671 ) — — Net cash provided by investing activities (1,671 ) — 310 Cash flows from financing activities: Issuance of treasury stock, including net deferred compensation plan activity — — 30 Proceeds from stock option exercises and issuance of other equity instruments 1,563 1,189 3,651 Tax benefit from stock option exercises and other equity instrument issuances 694 578 570 Redemption of junior subordinated debentures — — (10,310 ) Cash dividends paid (22,770 ) (19,722 ) (16,628 ) Net cash used in financing activities (20,513 ) (17,955 ) (22,687 ) Net increase (decrease) in cash (768 ) 242 31 Cash at beginning of year 3,937 3,695 3,664 Cash at end of year $3,169 $3,937 $3,695 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Line Items] | |
Federal Home Loan Bank Stock, redemption period, years after membership termination | 5 years |
Number of days overdue to be classified as nonaccrual | 90 days |
Troubled debt restructured loans, management determination of loans on nonaccrual status to return to accrual status, period | 6 months |
Time loan is reported as TDR from date of restructuring | 1 year |
Equity Method Investment, Number of Investments | 2 |
Number of low-income housing complexes included in equity method investments | 2 |
Equity Method Investee, One [Member] | |
Accounting Policies [Line Items] | |
Equity method investment, ownership percentage | 99.90% |
Equity Method Investee, Two [Member] | |
Accounting Policies [Line Items] | |
Equity method investment, ownership percentage | 99.90% |
Premises and Improvements [Member] | Minimum [Member] | |
Accounting Policies [Line Items] | |
Estimated useful life (in years) | 5 years |
Premises and Improvements [Member] | Maximum [Member] | |
Accounting Policies [Line Items] | |
Estimated useful life (in years) | 40 years |
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | |
Accounting Policies [Line Items] | |
Estimated useful life (in years) | 3 years |
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | |
Accounting Policies [Line Items] | |
Estimated useful life (in years) | 20 years |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) - USD ($) $ in Thousands | Aug. 01, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Acquisition [Abstract] | ||||
Cash to acquire Halsey, gross | $ 1,681 | |||
Common stock issued for acquisition | $ 5,430 | $ 5,430 | $ 0 | $ 0 |
Common stock issued for acquisition, shares | 136,543 | |||
Contingent consideration liability | $ 2,904 |
Acquisition (Details)
Acquisition (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Aug. 01, 2015 | Dec. 31, 2014 |
Acquisition [Abstract] | |||
Cash | $ 10 | ||
Deferred tax assets | 653 | ||
Goodwill | $ 64,059 | 5,945 | $ 58,114 |
Identifiable intangible assets | 7,515 | ||
Other assets | 202 | ||
Total assets acquired | 14,325 | ||
Contingent consideration liability | 2,904 | ||
Deferred tax liabilities | 2,803 | ||
Other liabilities | 1,507 | ||
Total liabilities assumed | 7,214 | ||
Net assets acquired | $ 7,111 |
Cash and Due from Banks (Narrat
Cash and Due from Banks (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and Cash Equivalents [Abstract] | ||
Average reserve deposited with the Board of Governors of the Federal Reserve Bank | $ 10.5 | $ 8 |
Interest-bearing deposits in other banks | $ 48.2 | $ 42.7 |
Securities (Narrative) (Details
Securities (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($)security | Dec. 31, 2013USD ($) | |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | |||
Available for sale securities amortized cost | $ 373,376 | $ 351,068 | |
Available for sale securities amortized cost | 373,376 | ||
Securities available for sale and held to maturity pledged as collateral, fair value | 346,100 | 350,500 | |
Credit-related impairment losses recognized in earnings | 0 | $ 0 | $ 3,489 |
Amortized cost of callable debt securities | 139,059 | ||
Fair value of callable debt securities | $ 134,685 | ||
Number of securities in a continuous unrealized loss position total | security | 26 | 15 | |
Trust preferred securities pooled issuers on nonaccrual status credit-related impairment losses first security | $ 2,800 | ||
Trust preferred securities pooled issuers on nonaccrual status credit-related impairment losses second security | 717 | ||
Available for sale securities | $ 375,044 | $ 357,662 | |
Proceeds from sales | $ 547 | ||
Minimum [Member] | |||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | |||
Callable debt securities, maturity period | 2 months | ||
Callable debt securities, call feature period | 1 month | ||
Maximum [Member] | |||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | |||
Callable debt securities, maturity period | 21 years | ||
Callable debt securities, call feature period | 6 years | ||
Individual name issuer trust preferred debt securities [Member] | |||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | |||
Available for sale securities amortized cost | $ 29,815 | $ 30,753 | |
Available for sale securities amortized cost | $ 29,815 | ||
Number of securities in a continuous unrealized loss position total | security | 10 | 11 | |
Securities in continuous unrealized loss position, number of companies issuing securities | security | 7 | ||
Amortized cost of trust preferred securities of individual name issuers that are below investment grade | $ 10,900 | ||
Unrealized losses of trust preferred securities of individual name issuers that are below investment grade | (1,700) | ||
Available for sale securities | $ 25,138 | $ 25,774 |
Securities (Summary of Investme
Securities (Summary of Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Available for sale securities amortized cost | $ 373,376 | $ 351,068 |
Available for sale securities unrealized gains | 7,203 | 11,630 |
Available for sale securities unrealized losses | (5,535) | (5,036) |
Available for sale, at fair value | 375,044 | 357,662 |
Held to maturity securities amortized cost | 20,023 | 25,222 |
Held to maturity securities unrealized gains | 493 | 786 |
Held to Matruity securities unrealized losses | 0 | 0 |
Held to maturity securities fair value | 20,516 | 26,008 |
Total securities amortized cost | 393,399 | 376,290 |
Total securities unrealized gains | 7,696 | 12,416 |
Total securities unrealized losses | (5,535) | (5,036) |
Total securities fair value | 395,560 | 383,670 |
Available for sale securities amortized cost | 373,376 | |
Obligations of U.S. government-sponsored enterprises [Member] | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Available for sale securities amortized cost | 77,330 | 31,205 |
Available for sale securities unrealized gains | 73 | 21 |
Available for sale securities unrealized losses | (388) | (54) |
Available for sale, at fair value | 77,015 | 31,172 |
Available for sale securities amortized cost | 77,330 | |
Mortgage-backed securities issued by U.S. government-sponsored agencies and U.S. government-sponsored enterprises [Member] | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Available for sale securities amortized cost | 228,908 | 235,343 |
Available for sale securities unrealized gains | 6,398 | 10,023 |
Available for sale securities unrealized losses | (450) | 0 |
Available for sale, at fair value | 234,856 | 245,366 |
Held to maturity securities amortized cost | 20,023 | 25,222 |
Held to maturity securities unrealized gains | 493 | 786 |
Held to Matruity securities unrealized losses | 0 | 0 |
Held to maturity securities fair value | 20,516 | 26,008 |
Available for sale securities amortized cost | 228,908 | |
Obligations of states and political subdivisions [Member] | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Available for sale securities amortized cost | 35,353 | 47,647 |
Available for sale securities unrealized gains | 727 | 1,529 |
Available for sale securities unrealized losses | 0 | 0 |
Available for sale, at fair value | 36,080 | 49,176 |
Available for sale securities amortized cost | 35,353 | |
Individual name issuer trust preferred debt securities [Member] | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Available for sale securities amortized cost | 29,815 | 30,753 |
Available for sale securities unrealized gains | 0 | 0 |
Available for sale securities unrealized losses | (4,677) | (4,979) |
Available for sale, at fair value | 25,138 | 25,774 |
Available for sale securities amortized cost | 29,815 | |
Corporate bonds [Member] | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Available for sale securities amortized cost | 1,970 | 6,120 |
Available for sale securities unrealized gains | 5 | 57 |
Available for sale securities unrealized losses | (20) | (3) |
Available for sale, at fair value | 1,955 | $ 6,174 |
Available for sale securities amortized cost | $ 1,970 |
Securities (Securities by Contr
Securities (Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Available for sale debt securities maturities wIthin 1 year amortized cost | $ 42,451 | |
Available for sale debt securities maturities 1-5 years amortized cost | 140,039 | |
Available for sale debt securities maturities 5-10 years amortized cost | 132,616 | |
Available for sale debt securities maturities after 10 years amortized cost | 58,270 | |
Available for sale securities amortized cost | 373,376 | |
Available for sale debt securities maturities within 1 year fair value | 43,532 | |
Available for sale debt securities maturities 1-5 years fair value | 143,061 | |
Available for sale debt securities maturities 5-10 years fair value | 134,119 | |
Available for sale debt securities maturities after 10 years fair value | 54,332 | |
Available for sale debt securities fair value | $ 375,044 | |
Available for sale debt securities maturities within 1 year weighted average yield | 3.56% | |
Available for sale debt securities maturities 1-5 years weighted average yield | 3.04% | |
Available for sale debt securities maturities 5-10 years weighted average yield | 2.58% | |
Available for sale debt securities maturities after 10 years weighted average yield | 1.36% | |
Available for sale debt securities maturities totals weighted average yield | 2.67% | |
Held to maturity securities amortized cost | $ 20,023 | $ 25,222 |
Held to maturity debt securities maturities within 1 year fair value | 2,640 | |
Held to maturity debt securities maturities 1-5 years fair value | 8,167 | |
Held to maturity debt securities maturities 5-10 years fair value | 6,421 | |
Held to maturity debt securities maturities after 10 years fair value | 3,288 | |
Held to maturity securities fair value | 20,516 | 26,008 |
Obligations of U.S. government-sponsored enterprises [Member] | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Available for sale debt securities maturities wIthin 1 year amortized cost | 0 | |
Available for sale debt securities maturities 1-5 years amortized cost | 15,100 | |
Available for sale debt securities maturities 5-10 years amortized cost | 62,230 | |
Available for sale debt securities maturities after 10 years amortized cost | 0 | |
Available for sale securities amortized cost | $ 77,330 | |
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 | 1.42% | |
Available for sale debt securities maturities 5-10 years weighted average yield | 2.34% | |
Available for sale debt securities maturities after 10 years weighted average yield | 0.00% | |
Available for sale debt securities maturities totals weighted average yield | 2.16% | |
Mortgage-backed securities issued by U.S. government-sponsored agencies and U.S. government-sponsored enterprises [Member] | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Available for sale debt securities maturities wIthin 1 year amortized cost | $ 38,526 | |
Available for sale debt securities maturities 1-5 years amortized cost | 101,233 | |
Available for sale debt securities maturities 5-10 years amortized cost | 60,694 | |
Available for sale debt securities maturities after 10 years amortized cost | 28,455 | |
Available for sale securities amortized cost | $ 228,908 | |
Available for sale debt securities maturities within 1 year weighted average yield | 3.53% | |
Available for sale debt securities maturities 1-5 years weighted average yield | 3.08% | |
Available for sale debt securities maturities 5-10 years weighted average yield | 2.63% | |
Available for sale debt securities maturities after 10 years weighted average yield | 1.25% | |
Available for sale debt securities maturities totals weighted average yield | 2.81% | |
Held to maturity debt securities maturities within 1 year amortized cost | $ 2,576 | |
Held to maturity debt securities maturities 1-5 years amortized cost | 7,971 | |
Held to maturity debt securities maturities 5-10 years amortized cost | 6,267 | |
Held to maturity debt securities maturities after 10 years amortized cost | 3,209 | |
Held to maturity securities amortized cost | $ 20,023 | 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 | 2.64% | |
Held to maturity debt securities maturities after 10 years weighted average yield | 0.75% | |
Held to maturity debt securities weighted average yield totals | 2.55% | |
Held to maturity securities fair value | $ 20,516 | $ 26,008 |
Obligations of states and political subdivisions [Member] | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Available for sale debt securities maturities wIthin 1 year amortized cost | 3,925 | |
Available for sale debt securities maturities 1-5 years amortized cost | 22,462 | |
Available for sale debt securities maturities 5-10 years amortized cost | 8,966 | |
Available for sale debt securities maturities after 10 years amortized cost | 0 | |
Available for sale securities amortized cost | $ 35,353 | |
Available for sale debt securities maturities within 1 year weighted average yield | 3.86% | |
Available for sale debt securities maturities 1-5 years weighted average yield | 3.97% | |
Available for sale debt securities maturities 5-10 years weighted average yield | 4.01% | |
Available for sale debt securities maturities after 10 years weighted average yield | 0.00% | |
Available for sale debt securities maturities totals weighted average yield | 3.97% | |
Individual name issuer trust preferred debt securities [Member] | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Available for sale debt securities maturities wIthin 1 year amortized cost | $ 0 | |
Available for sale debt securities maturities 1-5 years amortized cost | 0 | |
Available for sale debt securities maturities 5-10 years amortized cost | 0 | |
Available for sale debt securities maturities after 10 years amortized cost | 29,815 | |
Available for sale securities amortized cost | $ 29,815 | |
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 | 1.46% | |
Available for sale debt securities maturities totals weighted average yield | 1.46% | |
Corporate bonds [Member] | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Available for sale debt securities maturities wIthin 1 year amortized cost | $ 0 | |
Available for sale debt securities maturities 1-5 years amortized cost | 1,244 | |
Available for sale debt securities maturities 5-10 years amortized cost | 726 | |
Available for sale debt securities maturities after 10 years amortized cost | 0 | |
Available for sale securities amortized cost | $ 1,970 | |
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 | 2.10% | |
Available for sale debt securities maturities 5-10 years weighted average yield | 2.88% | |
Available for sale debt securities maturities after 10 years weighted average yield | 0.00% | |
Available for sale debt securities maturities totals weighted average yield | 2.39% |
Securities (Securities in a Con
Securities (Securities in a Continuous Unrealized Loss Position) (Details) $ in Thousands | Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($)security |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Number of securities in a continuous unrealized loss position for less than 12 months | security | 16 | 3 |
Fair value of securities in a continuous unrealized loss position for less than 12 months | $ 97,766 | $ 20,952 |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | $ (858) | $ (54) |
Number of securities in a continuous unrealized loss position for 12 months or longer | security | 10 | 12 |
Fair value of securities in a continuous unrealized loss position for 12 months or longer | $ 25,138 | $ 25,973 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | $ (4,677) | $ (4,982) |
Number of securities in a continuous unrealized loss position total | security | 26 | 15 |
Fair value of securities in a continuous unrealized loss position total | $ 122,904 | $ 46,925 |
Unrealized losses of securities in a continuous unrealized loss position total | $ (5,535) | $ (5,036) |
Obligations of U.S. government-sponsored enterprises [Member] | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Number of securities in a continuous unrealized loss position for less than 12 months | security | 4 | 3 |
Fair value of securities in a continuous unrealized loss position for less than 12 months | $ 34,767 | $ 20,952 |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | $ (388) | $ (54) |
Number of securities in a continuous unrealized loss position for 12 months or longer | security | 0 | 0 |
Fair value of securities in a continuous unrealized loss position for 12 months or longer | $ 0 | $ 0 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | $ 0 | $ 0 |
Number of securities in a continuous unrealized loss position total | security | 4 | 3 |
Fair value of securities in a continuous unrealized loss position total | $ 34,767 | $ 20,952 |
Unrealized losses of securities in a continuous unrealized loss position total | $ (388) | $ (54) |
Mortgage-backed securities issued by U.S. government-sponsored agencies and U.S. government-sponsored enterprises [Member] | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Number of securities in a continuous unrealized loss position for less than 12 months | security | 9 | |
Fair value of securities in a continuous unrealized loss position for less than 12 months | $ 61,764 | |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | $ (450) | |
Number of securities in a continuous unrealized loss position for 12 months or longer | security | 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 | security | 9 | |
Fair value of securities in a continuous unrealized loss position total | $ 61,764 | |
Unrealized losses of securities in a continuous unrealized loss position total | $ (450) | |
Individual name issuer trust preferred debt securities [Member] | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Number of securities in a continuous unrealized loss position for less than 12 months | security | 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 | security | 10 | 11 |
Fair value of securities in a continuous unrealized loss position for 12 months or longer | $ 25,138 | $ 25,774 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | $ (4,677) | $ (4,979) |
Number of securities in a continuous unrealized loss position total | security | 10 | 11 |
Fair value of securities in a continuous unrealized loss position total | $ 25,138 | $ 25,774 |
Unrealized losses of securities in a continuous unrealized loss position total | $ (4,677) | $ (4,979) |
Corporate bonds [Member] | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Number of securities in a continuous unrealized loss position for less than 12 months | security | 3 | 0 |
Fair value of securities in a continuous unrealized loss position for less than 12 months | $ 1,235 | $ 0 |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | $ (20) | $ 0 |
Number of securities in a continuous unrealized loss position for 12 months or longer | security | 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 | security | 3 | 1 |
Fair value of securities in a continuous unrealized loss position total | $ 1,235 | $ 199 |
Unrealized losses of securities in a continuous unrealized loss position total | $ (20) | $ (3) |
Securities (Rollforward of Othe
Securities (Rollforward of Other than Temporary Impairment, Credit Losses Recognized in Earnings) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Balance at beginning of period | $ 0 | $ 0 | $ 3,325 |
Credit-related impairment loss on debt securities for which an other-than-temporary impairment was not previously recognized | 0 | 0 | 0 |
Additional increases to the amount of credit-related impairment loss on debt securities for which an other-than-temporary impairment was previously recognized | 0 | 0 | 3,489 |
Reductions for securities for which a liquidation notice was received during the period | 0 | 0 | (4,868) |
Reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost | 0 | 0 | (1,946) |
Balance at end of period | $ 0 | $ 0 | $ 0 |
Loans (Narrative) (Details)
Loans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Receivables [Abstract] | |||
Loans Receivable Net Deferred Cost Originated | $ 2,647,000 | $ 2,134,000 | |
Loans Receivable Net Deferred Premium on Purchased Loans | 84,000 | 94,000 | |
Loans Pledged as Collateral | 1,268,006,000 | 1,209,975,000 | |
Loans And Leases Receivable Commitment To Lend To Borrowers With Nonaccrual or TDR Loans | 0 | 0 | |
Mortgage Loans in Process of Foreclosure, Amount | 2,561,000 | 1,786,000 | |
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 1,458,000 | 1,281,000 | $ 1,765,000 |
Interest and Fee Income, Loans and Leases, Nonaccrual Status | 522,000 | 455,000 | $ 400,000 |
Loans Receivable, Past Due, Nonaccrual | $ 13,600,000 | $ 12,700,000 |
Loans (Narrative - Troubled Deb
Loans (Narrative - Troubled Debt Restructurings) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Receivables [Abstract] | ||
Troubled debt restructured loans, management determination of loans on nonaccrual status to return to accrual status, period | 6 months | |
Time loan is reported as TDR from date of restructuring | 1 year | |
Recorded investment | $ 18.5 | $ 18.4 |
Specific reserves on troubled debt restructurings | $ 1.8 | $ 1.2 |
Loans (Narrative - Credit Quali
Loans (Narrative - Credit Quality Indicators) (Details) - rating | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Weighted Average Risk Rating, Commercial Loans | 4.68 | 4.67 |
Loans (Summary of Loans) (Detai
Loans (Summary of Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial | $ 1,654,547 | $ 1,535,488 |
Residential real estate | 1,013,555 | 985,415 |
Consumer | 345,025 | 338,373 |
Total loans | $ 3,013,127 | $ 2,859,276 |
Percent of total loans | 100.00% | 100.00% |
Commercial Mortgages [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial | $ 931,953 | $ 843,978 |
Total loans | $ 931,953 | $ 843,978 |
Percent of total loans | 31.00% | 30.00% |
Commercial Construction & Development [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial | $ 122,297 | $ 79,592 |
Total loans | $ 122,297 | $ 79,592 |
Percent of total loans | 4.00% | 3.00% |
Commercial & Industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial | $ 600,297 | $ 611,918 |
Total loans | $ 600,297 | $ 611,918 |
Percent of total loans | 20.00% | 21.00% |
Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Commercial | $ 1,654,547 | $ 1,535,488 |
Percent of total loans | 55.00% | 54.00% |
Residential Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Residential real estate | $ 984,437 | $ 948,731 |
Total loans | $ 984,437 | $ 948,731 |
Percent of total loans | 33.00% | 33.00% |
Homeowner Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Residential real estate | $ 29,118 | $ 36,684 |
Total loans | $ 29,118 | $ 36,684 |
Percent of total loans | 1.00% | 1.00% |
Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Residential real estate | $ 1,013,555 | $ 985,415 |
Percent of total loans | 34.00% | 34.00% |
Home Equity Lines [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer | $ 255,565 | $ 242,480 |
Total loans | $ 255,565 | $ 242,480 |
Percent of total loans | 8.00% | 8.00% |
Home Equity Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer | $ 46,649 | $ 46,967 |
Total loans | $ 46,649 | $ 46,967 |
Percent of total loans | 2.00% | 2.00% |
Other Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer | $ 42,811 | $ 48,926 |
Total loans | $ 42,811 | $ 48,926 |
Percent of total loans | 1.00% | 2.00% |
Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Consumer | $ 345,025 | $ 338,373 |
Percent of total loans | 11.00% | 12.00% |
Loans (Nonaccrual Loans) (Detai
Loans (Nonaccrual Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 21,047 | $ 15,945 |
Accruing loans 90 days or more past due | 0 | 0 |
Current Payment Status [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans, current as to payment of principal and interest | 7,400 | 3,200 |
Commercial Mortgages [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 5,711 | 5,315 |
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 | 3,018 | 1,969 |
Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 10,666 | 7,124 |
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 | 528 | 1,217 |
Home Equity Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 1,124 | 317 |
Other Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 0 | $ 3 |
Loans (Past Due Loans) (Details
Loans (Past Due Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | $ 17,559 | $ 18,078 |
Current Loans | 2,995,568 | 2,841,198 |
Total loans | 3,013,127 | 2,859,276 |
Commercial Mortgages [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 4,555 | 5,315 |
Current Loans | 927,398 | 838,663 |
Total loans | 931,953 | 843,978 |
Commercial Construction & Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 0 | 0 |
Current Loans | 122,297 | 79,592 |
Total loans | 122,297 | 79,592 |
Commercial & Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 462 | 3,519 |
Current Loans | 599,835 | 608,399 |
Total loans | 600,297 | 611,918 |
Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 9,286 | 7,048 |
Current Loans | 975,151 | 941,683 |
Total loans | 984,437 | 948,731 |
Homeowner Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 0 | 0 |
Current Loans | 29,118 | 36,684 |
Total loans | 29,118 | 36,684 |
Home Equity Lines [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 1,774 | 1,511 |
Current Loans | 253,791 | 240,969 |
Total loans | 255,565 | 242,480 |
Home Equity Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 1,460 | 645 |
Current Loans | 45,189 | 46,322 |
Total loans | 46,649 | 46,967 |
Other Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 22 | 40 |
Current Loans | 42,789 | 48,886 |
Total loans | 42,811 | 48,926 |
30-59 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 5,137 | 6,033 |
30-59 | Commercial Mortgages [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 51 | 0 |
30-59 | Commercial Construction & Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 0 | 0 |
30-59 | Commercial & Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 405 | 2,136 |
30-59 | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 3,028 | 2,943 |
30-59 | Homeowner Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 0 | 0 |
30-59 | Home Equity Lines [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 883 | 570 |
30-59 | Home Equity Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 748 | 349 |
30-59 | Other Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 22 | 35 |
60-89 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 3,836 | 2,368 |
60-89 | Commercial Mortgages [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 0 | 0 |
60-89 | Commercial Construction & Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 0 | 0 |
60-89 | Commercial & Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 9 | 1,202 |
60-89 | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 2,964 | 821 |
60-89 | Homeowner Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 0 | 0 |
60-89 | Home Equity Lines [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 373 | 100 |
60-89 | Home Equity Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 490 | 240 |
60-89 | Other Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 0 | 5 |
Over 90 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 8,586 | 9,677 |
Over 90 | Commercial Mortgages [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 4,504 | 5,315 |
Over 90 | Commercial Construction & Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 0 | 0 |
Over 90 | Commercial & Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 48 | 181 |
Over 90 | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 3,294 | 3,284 |
Over 90 | Homeowner Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 0 | 0 |
Over 90 | Home Equity Lines [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 518 | 841 |
Over 90 | Home Equity Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | 222 | 56 |
Over 90 | Other Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing receivable, recorded investment, past due | $ 0 | $ 0 |
Loans (Impaired Loans) (Details
Loans (Impaired Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Financing Receivable, Impaired [Line Items] | ||||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | $ 15,118 | $ 2,956 | |
Collateral dependent impaired loans | [1] | 17,138 | 19,096 | |
Total Recorded Investment of Impaired Loans | [1] | 32,256 | 22,052 | |
Unpaid Principal of Impaired Loans with No Related Allowance | 16,399 | 3,276 | ||
Unpaid Principal of Impaired Loans with Related Allowance | 17,493 | 19,765 | ||
Total Unpaid Principal of Impaired Loans | 33,892 | 23,041 | ||
No Related Allowance on Impaired Loans | 0 | 0 | ||
Related Allowance on Impaired Loans | 2,583 | 1,583 | ||
Average Recorded Investment of Impaired Loans | 24,610 | 29,792 | $ 37,967 | |
Interest Income Recognized on Impaired Loans | 626 | 899 | 967 | |
Commercial Mortgages [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 4,292 | 432 | |
Collateral dependent impaired loans | [1] | 10,873 | 14,585 | |
Unpaid Principal of Impaired Loans with No Related Allowance | 5,101 | 432 | ||
Unpaid Principal of Impaired Loans with Related Allowance | 10,855 | 14,564 | ||
No Related Allowance on Impaired Loans | 0 | 0 | ||
Related Allowance on Impaired Loans | 1,633 | 927 | ||
Average Recorded Investment of Impaired Loans | 14,847 | 22,971 | 27,496 | |
Interest Income Recognized on Impaired Loans | 327 | 658 | 630 | |
Commercial Construction & Development [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 0 | 0 | |
Collateral dependent impaired loans | [1] | 0 | 0 | |
Unpaid Principal of Impaired Loans with No Related Allowance | 0 | 0 | ||
Unpaid Principal of Impaired Loans with Related Allowance | 0 | 0 | ||
No Related Allowance on Impaired Loans | 0 | 0 | ||
Related Allowance on Impaired Loans | 0 | 0 | ||
Average Recorded Investment of Impaired Loans | 0 | 0 | 0 | |
Interest Income Recognized on Impaired Loans | 0 | 0 | 0 | |
Commercial & Industrial [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 1,849 | 1,047 | |
Collateral dependent impaired loans | [1] | 2,024 | 1,878 | |
Unpaid Principal of Impaired Loans with No Related Allowance | 1,869 | 1,076 | ||
Unpaid Principal of Impaired Loans with Related Allowance | 2,248 | 2,437 | ||
No Related Allowance on Impaired Loans | 0 | 0 | ||
Related Allowance on Impaired Loans | 771 | 177 | ||
Average Recorded Investment of Impaired Loans | 3,415 | 2,499 | 6,029 | |
Interest Income Recognized on Impaired Loans | 130 | 126 | 190 | |
Residential Mortgage [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 8,441 | 1,477 | |
Collateral dependent impaired loans | [1] | 2,895 | 2,226 | |
Unpaid Principal of Impaired Loans with No Related Allowance | 8,826 | 1,768 | ||
Unpaid Principal of Impaired Loans with Related Allowance | 2,941 | 2,338 | ||
No Related Allowance on Impaired Loans | 0 | 0 | ||
Related Allowance on Impaired Loans | 156 | 326 | ||
Average Recorded Investment of Impaired Loans | 5,423 | 4,006 | 4,024 | |
Interest Income Recognized on Impaired Loans | 147 | 101 | 125 | |
Homeowner Construction [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 0 | 0 | |
Collateral dependent impaired loans | [1] | 0 | 0 | |
Unpaid Principal of Impaired Loans with No Related Allowance | 0 | 0 | ||
Unpaid Principal of Impaired Loans with Related Allowance | 0 | 0 | ||
No Related Allowance on Impaired Loans | 0 | 0 | ||
Related Allowance on Impaired Loans | 0 | 0 | ||
Average Recorded Investment of Impaired Loans | 0 | 0 | 0 | |
Interest Income Recognized on Impaired Loans | 0 | 0 | 0 | |
Home Equity Lines [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 6 | 0 | |
Collateral dependent impaired loans | [1] | 522 | 250 | |
Unpaid Principal of Impaired Loans with No Related Allowance | 64 | 0 | ||
Unpaid Principal of Impaired Loans with Related Allowance | 522 | 250 | ||
No Related Allowance on Impaired Loans | 0 | 0 | ||
Related Allowance on Impaired Loans | 2 | 141 | ||
Average Recorded Investment of Impaired Loans | 228 | 97 | 200 | |
Interest Income Recognized on Impaired Loans | 1 | 2 | 7 | |
Home Equity Loans [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 530 | 0 | |
Collateral dependent impaired loans | [1] | 679 | 45 | |
Unpaid Principal of Impaired Loans with No Related Allowance | 539 | 0 | ||
Unpaid Principal of Impaired Loans with Related Allowance | 783 | 62 | ||
No Related Allowance on Impaired Loans | 0 | 0 | ||
Related Allowance on Impaired Loans | 21 | 12 | ||
Average Recorded Investment of Impaired Loans | 487 | 100 | 72 | |
Interest Income Recognized on Impaired Loans | 11 | 4 | 6 | |
Other Consumer [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 0 | 0 | |
Collateral dependent impaired loans | [1] | 145 | 112 | |
Unpaid Principal of Impaired Loans with No Related Allowance | 0 | 0 | ||
Unpaid Principal of Impaired Loans with Related Allowance | 144 | 114 | ||
No Related Allowance on Impaired Loans | 0 | 0 | ||
Related Allowance on Impaired Loans | 0 | 0 | ||
Average Recorded Investment of Impaired Loans | 210 | 119 | 146 | |
Interest Income Recognized on Impaired Loans | 10 | 8 | $ 9 | |
Commercial Portfolio Segment [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total Recorded Investment of Impaired Loans | [1] | 19,038 | 17,942 | |
Total Unpaid Principal of Impaired Loans | 20,073 | 18,509 | ||
Related Allowance on Impaired Loans | 2,404 | 1,104 | ||
Residential Real Estate [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total Recorded Investment of Impaired Loans | [1] | 11,336 | 3,703 | |
Total Unpaid Principal of Impaired Loans | 11,767 | 4,106 | ||
Related Allowance on Impaired Loans | 156 | 326 | ||
Consumer [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total Recorded Investment of Impaired Loans | [1] | 1,882 | 407 | |
Total Unpaid Principal of Impaired Loans | 2,052 | 426 | ||
Related Allowance on Impaired Loans | $ 23 | $ 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 collectability of the loan is not in doubt), the recorded investment also includes accrued interest. |
Loans (Troubled Debt Restructur
Loans (Troubled Debt Restructurings) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans Modified as a Troubled Debt Restructuring | loan | 9 | 16 |
Pre-Modification Recorded Investment | $ 2,498 | $ 2,183 |
Post-Modification Recorded Investment | $ 2,498 | $ 2,183 |
Commercial Mortgages [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans Modified as a Troubled Debt Restructuring | loan | 1 | 0 |
Pre-Modification Recorded Investment | $ 1,190 | $ 0 |
Post-Modification Recorded Investment | $ 1,190 | $ 0 |
Commercial Construction & Development [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans Modified as a Troubled Debt Restructuring | loan | 0 | 0 |
Pre-Modification Recorded Investment | $ 0 | $ 0 |
Post-Modification Recorded Investment | $ 0 | $ 0 |
Commercial & Industrial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans Modified as a Troubled Debt Restructuring | loan | 3 | 12 |
Pre-Modification Recorded Investment | $ 584 | $ 1,191 |
Post-Modification Recorded Investment | $ 584 | $ 1,191 |
Residential Mortgage [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans Modified as a Troubled Debt Restructuring | loan | 3 | 4 |
Pre-Modification Recorded Investment | $ 619 | $ 992 |
Post-Modification Recorded Investment | $ 619 | $ 992 |
Homeowner Construction [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans Modified as a Troubled Debt Restructuring | loan | 0 | 0 |
Pre-Modification Recorded Investment | $ 0 | $ 0 |
Post-Modification Recorded Investment | $ 0 | $ 0 |
Home Equity Lines [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans Modified as a Troubled Debt Restructuring | loan | 0 | 0 |
Pre-Modification Recorded Investment | $ 0 | $ 0 |
Post-Modification Recorded Investment | $ 0 | $ 0 |
Home Equity Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans Modified as a Troubled Debt Restructuring | loan | 1 | 0 |
Pre-Modification Recorded Investment | $ 70 | $ 0 |
Post-Modification Recorded Investment | $ 70 | $ 0 |
Other Consumer [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans Modified as a Troubled Debt Restructuring | loan | 1 | 0 |
Pre-Modification Recorded Investment | $ 35 | $ 0 |
Post-Modification Recorded Investment | $ 35 | $ 0 |
Loans (Troubled Debt Restruct68
Loans (Troubled Debt Restructurings Type of Modification) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Investment | $ 2,498 | $ 2,183 |
Below-market interest rate concession [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Investment | 335 | 77 |
Payment deferral [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Investment | 903 | 791 |
Maturity / amortization concession [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Investment | 70 | 964 |
Combination [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Pre-Modification Recorded Investment | $ 1,190 | $ 351 |
Loans (Troubled Debt Restruct69
Loans (Troubled Debt Restructurings Subsequent Default) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans Modified as a Troubled Debt Restructuring | 9 | 16 |
Payment Default [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans Modified as a Troubled Debt Restructuring | 2 | 7 |
Recorded Investment on Modifications with Subsequent Default | $ | $ 290 | $ 669 |
Loans (Credit Quality Indicator
Loans (Credit Quality Indicators - Commercial) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | $ 1,614,107 | $ 1,491,655 |
Pass [Member] | Commercial Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 914,774 | 819,857 |
Pass [Member] | Commercial Construction & Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 122,297 | 79,592 |
Pass [Member] | Commercial & Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 577,036 | 592,206 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 15,047 | 34,683 |
Special Mention [Member] | Commercial Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 3,035 | 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 | 12,012 | 16,311 |
Classified [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 25,393 | 9,150 |
Classified [Member] | Commercial Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 14,144 | 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 | $ 11,249 | $ 3,401 |
Loans (Credit Quality Indicat71
Loans (Credit Quality Indicators - Residential, Consumer) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Under 90 Days Past Due [Member] | Accruing Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | $ 973,771 | $ 941,607 |
Under 90 Days Past Due [Member] | Nonaccrual Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 7,372 | 3,840 |
Under 90 Days Past Due [Member] | Homeowner Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 29,118 | 36,684 |
Under 90 Days Past Due [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 1,010,261 | 982,131 |
Under 90 Days Past Due [Member] | Home Equity Lines [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 255,047 | 241,639 |
Under 90 Days Past Due [Member] | Home Equity Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 46,427 | 46,911 |
Under 90 Days Past Due [Member] | Other Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 42,811 | 48,926 |
Under 90 Days Past Due [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 344,285 | 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 | 3,294 | 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 Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 3,294 | 3,284 |
Over 90 Days Past Due [Member] | Home Equity Lines [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 518 | 841 |
Over 90 Days Past Due [Member] | Home Equity Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 222 | 56 |
Over 90 Days Past Due [Member] | Other Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 0 | 0 |
Over 90 Days Past Due [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | $ 740 | $ 897 |
Loans (Analysis of Loan Servici
Loans (Analysis of Loan Servicing Rights) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loan Servicing Rights [Roll Forward] | |||
Beginning balance | $ 2,989 | $ 2,767 | $ 1,275 |
Loan servicing rights capitalized | 1,406 | 869 | 1,897 |
Amortization | (1,047) | (647) | (405) |
Decrease in impairment reserve | 0 | 0 | 0 |
Ending balance | 3,348 | 2,989 | 2,767 |
Valuation Allowance [Roll Forward] | |||
Beginning balance | (2) | (69) | (165) |
Loan servicing rights capitalized | 0 | 0 | 0 |
Amortization | 0 | 0 | 0 |
Decrease in impairment reserve | 1 | 67 | 96 |
Ending balance | (1) | (2) | (69) |
Total Loan Servicing Rights [Roll Forward] | |||
Beginning Balance | 2,987 | 2,698 | 1,110 |
Loan servicing rights capitalized | 1,406 | 869 | 1,897 |
Amortization | (1,047) | (647) | (405) |
Decrease in impairment reserve | 1 | 67 | 96 |
Ending balance | $ 3,347 | $ 2,987 | $ 2,698 |
Loans (Estimated Aggregate Amor
Loans (Estimated Aggregate Amortization Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Receivables [Abstract] | ||||
Amortization Expense, Next Twelve Months | $ 1,008 | |||
Amortization Expense, Year Two | 701 | |||
Amortization Expense, Year Three | 491 | |||
Amortization Expense, Year Four | 343 | |||
Amortization Expense, Year Five | 241 | |||
Amortization Expense, Thereafter | 564 | |||
Total estimated amortization expense | $ 3,348 | $ 2,989 | $ 2,767 | $ 1,275 |
Loans (Loans Serviced for Other
Loans (Loans Serviced for Others, by Type of Loan) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance of loans being serviced | $ 567,802 | $ 469,282 |
Residential Mortgage [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance of loans being serviced | 458,629 | 378,798 |
Commercial Loan [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance of loans being serviced | $ 109,173 | $ 90,484 |
Allowance for Loan Losses (Allo
Allowance for Loan Losses (Allowance for Loan Losses Rollforward Analysis) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | $ 28,023 | $ 27,886 | $ 30,873 | |
Charge-offs | (2,305) | (1,949) | (6,022) | |
Recoveries | 301 | 236 | 635 | |
Provision | 1,050 | 1,850 | 2,400 | |
Ending Balance | 27,069 | 28,023 | 27,886 | |
Commercial Mortgages [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 8,202 | 8,022 | 9,817 | |
Charge-offs | (809) | (977) | (5,213) | |
Recoveries | 92 | 24 | 380 | |
Provision | 1,655 | 1,133 | 3,038 | |
Ending Balance | 9,140 | 8,202 | 8,022 | |
Commercial Construction & Development [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 1,300 | 383 | 224 | |
Charge-offs | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Provision | 458 | 917 | 159 | |
Ending Balance | 1,758 | 1,300 | 383 | |
Commercial & Industrial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | [1] | 7,987 | 7,835 | 8,934 |
Charge-offs | [1] | (671) | (558) | (358) |
Recoveries | [1] | 87 | 86 | 153 |
Provision | [1] | 799 | 624 | (894) |
Ending Balance | [1] | 8,202 | 7,987 | 7,835 |
Commercial Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 17,489 | 16,240 | 18,975 | |
Charge-offs | (1,480) | (1,535) | (5,571) | |
Recoveries | 179 | 110 | 533 | |
Provision | 2,912 | 2,674 | 2,303 | |
Ending Balance | 19,100 | 17,489 | 16,240 | |
Residential Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 5,430 | 6,450 | 6,428 | |
Charge-offs | (207) | (132) | (128) | |
Recoveries | 28 | 51 | 3 | |
Provision | 209 | (939) | 147 | |
Ending Balance | 5,460 | 5,430 | 6,450 | |
Consumer [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 2,713 | 2,511 | 2,684 | |
Charge-offs | (618) | (282) | (323) | |
Recoveries | 94 | 75 | 99 | |
Provision | 320 | 409 | 51 | |
Ending Balance | 2,509 | 2,713 | 2,511 | |
Unallocated [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning Balance | 2,391 | 2,685 | 2,786 | |
Charge-offs | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Provision | (2,391) | (294) | (101) | |
Ending Balance | $ 0 | $ 2,391 | $ 2,685 | |
[1] | Commercial & industrial loans. |
Allowance for Loan Losses (Al76
Allowance for Loan Losses (Allowance for Loan Losses by Segment & Impairment Methodology) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | $ 32,226 | $ 22,019 |
Loans related allowance individually evaluated for impairment | 2,583 | 1,583 |
Loans collectively evaluated for impairment | 2,980,901 | 2,837,257 |
Loans related allowance collectively evaluated for impairment | 24,486 | 24,049 |
Total loans | 3,013,127 | 2,859,276 |
Allowance | 27,069 | 28,023 |
Commercial Mortgages [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 15,141 | 14,991 |
Loans related allowance individually evaluated for impairment | 1,633 | 927 |
Loans collectively evaluated for impairment | 916,812 | 828,987 |
Loans related allowance collectively evaluated for impairment | 7,507 | 7,275 |
Total loans | 931,953 | 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 | 122,297 | 79,592 |
Loans related allowance collectively evaluated for impairment | 1,758 | 1,300 |
Total loans | 122,297 | 79,592 |
Commercial & Industrial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 3,871 | 2,921 |
Loans related allowance individually evaluated for impairment | 771 | 177 |
Loans collectively evaluated for impairment | 596,426 | 608,997 |
Loans related allowance collectively evaluated for impairment | 7,431 | 7,810 |
Total loans | 600,297 | 611,918 |
Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 11,333 | 3,698 |
Loans related allowance individually evaluated for impairment | 156 | 326 |
Loans collectively evaluated for impairment | 1,002,222 | 981,717 |
Loans related allowance collectively evaluated for impairment | 5,304 | 5,104 |
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 1,881 | 409 |
Loans related allowance individually evaluated for impairment | 23 | 153 |
Loans collectively evaluated for impairment | 343,144 | 337,964 |
Loans related allowance collectively evaluated for impairment | 2,486 | 2,560 |
Unallocated [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans | 0 | 0 |
Allowance | $ 0 | $ 2,391 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | $ 69,798 | $ 65,669 | |
Less accumulated depreciation | 40,205 | 38,174 | |
Total premises and equipment, net | 29,593 | 27,495 | |
Depreciation expense | 3,400 | 3,100 | $ 3,300 |
Land and Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | 6,020 | 6,020 | |
Premises and Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | 36,358 | 34,608 | |
Furniture, Fixtures and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | $ 27,420 | $ 25,041 |
Goodwill and Other Intangible78
Goodwill and Other Intangibles (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 01, 2015 | Aug. 31, 2005 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 64,059 | $ 58,114 | $ 5,945 | ||
Identifiable intangible assets | 7,515 | ||||
Amortization of intangibles | $ 904 | $ 644 | $ 680 | ||
Non-compete Agreements [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible asset useful life (in years) | 18 months | ||||
Weston Financial acquisition [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 35,523 | ||||
Weston Financial acquisition [Member] | Advisory Contracts [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible asset useful life (in years) | 20 years | ||||
Halsey acquisition [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | 5,945 | ||||
Halsey acquisition [Member] | Advisory Contracts [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Identifiable intangible assets | 7,146 | ||||
Intangible asset useful life (in years) | 15 years | ||||
Halsey acquisition [Member] | Non-compete Agreements [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Identifiable intangible assets | $ 369 |
Goodwill and Other Intangible79
Goodwill and Other Intangibles (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Aug. 01, 2015 | Dec. 31, 2014 |
Goodwill [Line Items] | |||
Goodwill | $ 64,059 | $ 5,945 | $ 58,114 |
Commercial Banking [Member] | |||
Goodwill [Line Items] | |||
Goodwill | 22,591 | 22,591 | |
Wealth Management Services [Member] | |||
Goodwill [Line Items] | |||
Goodwill | $ 41,468 | $ 35,523 |
Goodwill and Other Intangible80
Goodwill and Other Intangibles (Schedule of Components of Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Advisory Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 20,803 | $ 13,657 |
Accumulated amortization | 9,610 | 8,808 |
Net amount | 11,193 | 4,849 |
Non-compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 369 | 0 |
Accumulated amortization | 102 | 0 |
Net amount | $ 267 | $ 0 |
Goodwill and Other Intangible81
Goodwill and Other Intangibles (Schedule of Amortization Annual Expense) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 1,284 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 1,035 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 979 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 943 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 914 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 6,305 |
Non-compete Agreements [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 246 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 21 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 0 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 0 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 0 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 0 |
Advisory Contracts [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 1,038 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 1,014 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 979 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 943 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 914 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | $ 6,305 |
Income Tax Expense (Narrative)
Income Tax Expense (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 0 | $ 0 |
Income Tax Expense (Schedule of
Income Tax Expense (Schedule of Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current tax expense: | |||
Federal | $ 17,864 | $ 16,286 | $ 13,518 |
State | 1,194 | 866 | 742 |
Total current tax expense | 19,058 | 17,152 | 14,260 |
Deferred tax expense (benefit): | |||
Federal | 2,003 | 1,820 | 2,300 |
State | (183) | 27 | (33) |
Total deferred tax expense | 1,820 | 1,847 | 2,267 |
Total income tax expense | $ 20,878 | $ 18,999 | $ 16,527 |
Income Tax Expense (Schedule 84
Income Tax Expense (Schedule of Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Tax expense at Federal statutory rate | $ 22,520 | $ 20,938 | $ 18,438 |
(Decrease) increase in taxes resulting from: | |||
Tax-exempt income | (1,604) | (1,540) | (1,408) |
Dividends received deduction | (57) | (29) | 0 |
BOLI | (694) | (646) | (648) |
Federal tax credits | (364) | (364) | (364) |
Acquisition related expenses | 318 | 0 | 0 |
State income tax expense, net of federal income tax benefit | 658 | 581 | 461 |
Other | 101 | 59 | 48 |
Total income tax expense | $ 20,878 | $ 18,999 | $ 16,527 |
Income Tax Expense (Schedule 85
Income Tax Expense (Schedule of Gross Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Allowance for loan losses | $ 10,015 | $ 10,116 |
Defined benefit pension obligations | 3,447 | 6,719 |
Deferred compensation | 3,181 | 2,761 |
Deferred loan origination fees | 2,001 | 1,822 |
Stock based compensation | 1,772 | 1,676 |
Other | 3,547 | 3,026 |
Deferred tax assets | 23,963 | 26,120 |
Deferred tax liabilities: | ||
Net unrealized gains on securities available for sale | (617) | (2,373) |
Amortization of intangibles | (4,240) | (1,750) |
Deferred loan origination costs | (5,089) | (4,694) |
Loan servicing rights | (1,238) | (1,078) |
Other | (1,009) | (1,206) |
Deferred tax liabilities | (12,193) | (11,101) |
Net deferred tax asset | $ 11,770 | $ 15,019 |
Time Certificates of Deposit (S
Time Certificates of Deposit (Schedule of Time Certifcates of Deposit Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits [Abstract] | ||
Time Deposits Scheduled Maturity, Next Twelve Months | $ 329,764 | |
Time Deposits Weighted Average Rate, Next Twelve Months | 0.67% | |
Time Deposits Scheduled Maturity, Year Two | $ 190,552 | |
Time Deposits Weighted Average Rate, Year Two | 1.04% | |
Time Deposits Scheduled Maturity, Year Three | $ 93,974 | |
Time Deposits Weighted Average Rate, Year Three | 1.30% | |
Time Deposits Scheduled Maturity, Year Four | $ 140,261 | |
Time Deposits Weighted Average Rate, Year Four | 1.72% | |
Time Deposits Scheduled Maturity, Year Five | $ 79,278 | |
Time Deposits Weighted Average Rate, Year Five | 1.63% | |
Time Deposits Scheduled Maturity, Thereafter | $ 69 | |
Time Deposits Weighted Average Rate, Thereafter | 2.49% | |
Time deposits | $ 833,898 | $ 874,102 |
Total Time Deposits Weighted Average Rate | 1.09% |
Time Certificates of Deposit 87
Time Certificates of Deposit (Schedule of Time Certificates of Deposit $100 Thousand or More Maturities) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Deposits [Abstract] | |
Time Deposits $100,000 or More Maturing in Three Months or Less | $ 82,083 |
Time Deposits $100,000 or More Maturing in Three Months Through Six Months | 24,919 |
Time Deposits $100,000 or More Maturing in Six Months Through Twelve Months | 31,621 |
Time Deposits $100,000 or More Maturing After 12 Months | 119,236 |
Time Deposits $100,000 or More Balance at Year End | $ 257,859 |
Time Certificates of Deposit (N
Time Certificates of Deposit (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Time Certificates of Deposit [Abstract] | ||
Time deposits greater than FDIC limit | $ 45.1 | $ 45.7 |
Borrowings (Narrative - Federal
Borrowings (Narrative - Federal Home Loan Bank Advances) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank advances | $ 378,973 | $ 406,297 |
Federal Home Loan Bank of Boston [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank advances | 378,973 | 406,297 |
Unused line of credit with Federal Home Loan Bank | 40,000 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 644,800 | $ 569,400 |
Weighted Average Rate, Total | 2.11% | |
Original Terms of FHLBB Advance Modification [Member] | Federal Home Loan Bank of Boston [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank advances | $ 59,403 | |
Weighted Average Rate, Total | 3.48% | |
Revised Terms of FHLBB Advance Modification [Member] | Federal Home Loan Bank of Boston [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank advances | $ 59,403 | |
Weighted Average Rate, Total | 3.01% |
Borrowings (Narrative - Junior
Borrowings (Narrative - Junior Subordinated Debentures) (Details) - USD ($) $ in Thousands | 12 Months Ended | 61 Months Ended | 63 Months Ended | 64 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2015 | Sep. 15, 2010 | Nov. 23, 2010 | Dec. 31, 2015 | Dec. 31, 2014 | Aug. 29, 2005 | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||||||
Junior subordinated debentures | $ 22,681 | $ 22,681 | $ 22,681 | $ 22,681 | |||
Trust Preferred Securities [Member] | Trust I Capital Securities [Member] | Private Placement [Member] | |||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||||||
Amount of capital securities issued | $ 8,300 | ||||||
Minimum redemption period | 5 years | ||||||
Redemption rate | 5.97% | ||||||
Description of variable rate basis | three-month LIBOR | ||||||
Basis spread on variable rate | 1.45% | ||||||
Trust Preferred Securities [Member] | Trust I Debentures [Member] | |||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||||||
Junior subordinated debentures | 8,300 | ||||||
Redemption rate | 5.97% | ||||||
Description of variable rate basis | three-month LIBOR | ||||||
Basis spread on variable rate | 1.45% | ||||||
Trust Preferred Securities [Member] | Trust II Capital Securities [Member] | Private Placement [Member] | |||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||||||
Amount of capital securities issued | 14,400 | ||||||
Minimum redemption period | 5 years | ||||||
Redemption rate | 5.96% | ||||||
Description of variable rate basis | three-month LIBOR | ||||||
Basis spread on variable rate | 1.45% | ||||||
Trust Preferred Securities [Member] | Trust II Debentures [Member] | |||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||||||
Junior subordinated debentures | $ 14,400 | ||||||
Redemption rate | 5.96% | ||||||
Description of variable rate basis | three-month LIBOR | ||||||
Basis spread on variable rate | 1.45% |
Borrowings (Federal Home Loan B
Borrowings (Federal Home Loan Bank Advances Maturity Schedule) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
Federal Home Loan Bank advances | $ 378,973 | $ 406,297 |
Federal Home Loan Bank of Boston [Member] | ||
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
Scheduled Maturity, next 12 months | 141,292 | |
Scheduled Maturity, year two | 37,575 | |
Scheduled Maturity, year three | 83,134 | |
Scheduled Maturity, year four | 42,661 | |
Scheduled Maturity, year five | 27,733 | |
Scheduled Maturity, thereafter | 46,578 | |
Federal Home Loan Bank advances | $ 378,973 | $ 406,297 |
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract] | ||
Weighted Average Rate, next 12 months | 0.68% | |
Weighted Average Rate, year two | 2.52% | |
Weighted Average Rate, year three | 2.26% | |
Weighted Average Rate, year four | 3.79% | |
Weighted Average Rate, year five | 2.30% | |
Weighted Average Rate, thereafter | 4.16% | |
Weighted Average Rate, Total | 2.11% |
Borrowings (Federal Home Loan92
Borrowings (Federal Home Loan Bank Advances Maturity Schedule, Modification) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
Federal Home Loan Bank advances | $ 378,973 | $ 406,297 |
Federal Home Loan Bank of Boston [Member] | ||
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
Scheduled Maturity, year two | 37,575 | |
Scheduled Maturity, year three | 83,134 | |
Scheduled Maturity, year four | 42,661 | |
Scheduled Maturity, year five | 27,733 | |
Federal Home Loan Bank advances | $ 378,973 | $ 406,297 |
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract] | ||
Weighted Average Rate, year two | 2.52% | |
Weighted Average Rate, year three | 2.26% | |
Weighted Average Rate, year four | 3.79% | |
Weighted Average Rate, year five | 2.30% | |
Weighted Average Rate, Total | 2.11% | |
Federal Home Loan Bank of Boston [Member] | Original Terms of FHLBB Advance Modification [Member] | ||
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
Scheduled Maturity, year two | $ 10,000 | |
Scheduled Maturity, year three | 35,000 | |
Scheduled Maturity, year four | 14,403 | |
Scheduled Maturity, year five | 0 | |
Scheduled Maturity, year six | 0 | |
Schedule Maturity, year seven | 0 | |
Schedule Maturity, year eight | 0 | |
Federal Home Loan Bank advances | $ 59,403 | |
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract] | ||
Weighted Average Rate, year two | 3.29% | |
Weighted Average Rate, year three | 3.14% | |
Weighted Average Rate, year four | 4.46% | |
Weighted Average Rate, year five | 0.00% | |
Weighted Average Rate, year six | 0.00% | |
Weighted Average Rate, year seven | 0.00% | |
Weighted Average Rate, year eight | 0.00% | |
Weighted Average Rate, Total | 3.48% | |
Federal Home Loan Bank of Boston [Member] | Revised Terms of FHLBB Advance Modification [Member] | ||
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
Scheduled Maturity, year two | $ 0 | |
Scheduled Maturity, year three | 0 | |
Scheduled Maturity, year four | 0 | |
Scheduled Maturity, year five | 5,000 | |
Scheduled Maturity, year six | 20,000 | |
Schedule Maturity, year seven | 25,830 | |
Schedule Maturity, year eight | 8,573 | |
Federal Home Loan Bank advances | $ 59,403 | |
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract] | ||
Weighted Average Rate, year two | 0.00% | |
Weighted Average Rate, year three | 0.00% | |
Weighted Average Rate, year four | 0.00% | |
Weighted Average Rate, year five | 2.71% | |
Weighted Average Rate, year six | 2.63% | |
Weighted Average Rate, year seven | 3.06% | |
Weighted Average Rate, year eight | 3.90% | |
Weighted Average Rate, Total | 3.01% |
Borrowings (Certain Information
Borrowings (Certain Information of Federal Home Loan Bank of Boston Advances) (Details) - Federal Home Loan Bank of Boston [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Average amount outstanding during the period | $ 155,874 | $ 70,693 | $ 13,901 |
Amount outstanding at end of period | 107,500 | 200,000 | 0 |
Highest month end balance during period | $ 229,500 | $ 200,000 | $ 60,000 |
Weighted-average interest rate at end of period | 0.55% | 0.37% | 0.00% |
Weighted-average interest rate during the period | 0.38% | 0.35% | 0.30% |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) $ / shares in Units, $ in Millions | Aug. 17, 2006$ / shares$ / rightshares | Dec. 31, 2006shares | Dec. 31, 2007USD ($) | Dec. 31, 2015USD ($)shares | Dec. 24, 2008shares |
Dividends: | |||||
Amount of additional dividends the bank could have declared | $ | $ 194.3 | ||||
Amended and Restated Dividend Reinvestment and Stock Purchase Plan [Member] | |||||
Reserved Shares: | |||||
Reserved shares available for grant | 607,500 | ||||
2006 Rights Agreement [Member] | |||||
Shareholder Rights Plan: | |||||
Number of rights per outstanding share of common stock | 1 | ||||
Number of securities called by rights | 1 | ||||
Exercise price of shares | $ / shares | $ 100 | ||||
Days after an acquiring person acquired beneficial ownership causing rights to become exercisable | 10 days | ||||
Percentage acquistion of company's common stock causing rights to become exercisable | 15.00% | ||||
Exercise price per right available to company prior to expiration | $ / right | 0.01 | ||||
Exercise price percentage per right in event a party becomes an acquiring person | 200.00% | ||||
Exercise price percentage per right in event company is acquired | 200.00% | ||||
Reserved Shares: | |||||
Reserved shares available for grant | 2,292,840 | ||||
2006 Stock Repurchase Plan [Member] | |||||
Stock Repurchase Program: | |||||
Authorized amount (in shares) | 400,000 | ||||
Authorized amount as a percentage of total common stock | 3.00% | ||||
Cumulative amount of shares purchased | 185,400 | ||||
Shares repurchased, value | $ | $ 4.8 |
Shareholders' Equity (Regulator
Shareholders' Equity (Regulatory Captial Requirements) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Parent Company [Member] | ||
Total Capital (to Risk-Weighted Assets): | ||
Total Capital | $ 367,443 | $ 343,934 |
Total Capital to Risk-Weighted Assets | 12.58% | 12.56% |
Total Capital for Capital Adequacy Purposes | $ 233,739 | $ 219,149 |
Total Capital for Capital Adequacy Purposes to Risk-Weighted Assets | 8.00% | 8.00% |
Tier 1 Capital (to Risk-Weighted Assets): | ||
Tier 1 Capital | $ 340,130 | $ 315,575 |
Tier 1 Capital to Risk Weighted-Assets | 11.64% | 11.52% |
Tier 1 Capital Required For Capital Adequacy Purposes | $ 175,304 | $ 109,574 |
Tier 1 Capital Required for Capital Adequacy Purposes to Risk Weighted-Assets | 6.00% | 4.00% |
Common Equity Tier 1 Capital [Abstract] | ||
Common Equity Tier 1 Capital | $ 318,131 | |
Common Equity Tier 1 Capital to Risk Weighted Assets | 10.89% | |
Common Equity Tier 1 Required for Capital Adequacy | $ 131,478 | |
Common Equity Tier 1 Capital for Capital Adequacy to Risk Weighted Assets | 4.50% | |
Tier 1 Capital (to Average Assets): | ||
Tier 1 Leverage Capital | $ 340,130 | $ 315,575 |
Tier 1 Leverage Capital to Average Assets | 9.37% | 9.14% |
Tier 1 Leverage Capital Required for Capital Adequacy Purposes | $ 145,191 | $ 138,090 |
Tier 1 Leverage Capital Required for Capital Adequacy Purposes to Average Assets | 4.00% | 4.00% |
Bank [Member] | ||
Total Capital (to Risk-Weighted Assets): | ||
Total Capital | $ 366,676 | $ 339,268 |
Total Capital to Risk-Weighted Assets | 12.55% | 12.39% |
Total Capital for Capital Adequacy Purposes | $ 233,676 | $ 219,075 |
Total Capital for Capital Adequacy Purposes to Risk-Weighted Assets | 8.00% | 8.00% |
Total Capital To Be Well Capitalized | $ 292,095 | $ 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 | $ 339,363 | $ 310,909 |
Tier 1 Capital to Risk Weighted-Assets | 11.62% | 11.35% |
Tier 1 Capital Required For Capital Adequacy Purposes | $ 175,257 | $ 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 | $ 233,676 | $ 164,306 |
Tier 1 Capital Required To Be Well Capitalized to Risk Weighted-Assets | 8.00% | 6.00% |
Common Equity Tier 1 Capital [Abstract] | ||
Common Equity Tier 1 Capital | $ 339,363 | |
Common Equity Tier 1 Capital to Risk Weighted Assets | 11.62% | |
Common Equity Tier 1 Required for Capital Adequacy | $ 131,443 | |
Common Equity Tier 1 Capital for Capital Adequacy to Risk Weighted Assets | 4.50% | |
Common Equity Tier 1 Capital Required to be Well Capitalized | $ 189,861 | |
Common Equity Tier 1 Capital Required to be Well Capitalized to Risk Weighted Assets | 6.50% | |
Tier 1 Capital (to Average Assets): | ||
Tier 1 Leverage Capital | $ 339,363 | $ 310,909 |
Tier 1 Leverage Capital to Average Assets | 9.36% | 9.01% |
Tier 1 Leverage Capital Required for Capital Adequacy Purposes | $ 145,103 | $ 137,964 |
Tier 1 Leverage Capital Required for Capital Adequacy Purposes to Average Assets | 4.00% | 4.00% |
Tier 1 Leverage Capital Required To Be Well Capitalized | $ 181,378 | $ 172,454 |
Tier 1 Leverage Capital Required To Be Well Capitalized to Average Assets | 5.00% | 5.00% |
Derivative Financial Instrume96
Derivative Financial Instruments (Narrative) (Details) $ in Thousands | Dec. 31, 2015USD ($)derivative_instrument | Dec. 31, 2014USD ($)derivative_instrument |
Interest rate swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 0 | $ 22,681 |
Interest rate swaps with customers [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 302,142 | 165,795 |
Mirror swaps with counterparties [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 302,142 | 165,795 |
Risk participation-in agreement [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 21,474 | $ 0 |
Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Number of derivative instruments held | derivative_instrument | 2 | |
Notional amount | $ 22,681 | |
Designated as Hedging Instrument [Member] | Interest rate caps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Number of derivative instruments held | derivative_instrument | 2 | |
Notional amount | $ 22,681 | |
Interest rate cap premium | $ 257 | |
Interest rate cap strike | 4.50% | |
Not Designated as Hedging Instrument [Member] | Interest rate swaps with customers [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 302,142 | $ 165,795 |
Not Designated as Hedging Instrument [Member] | Risk participation-out agreement [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 25,296 | |
Not Designated as Hedging Instrument [Member] | Risk participation-in agreement [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 21,474 |
Derivative Financial Instrume97
Derivative Financial Instruments (Fair Value of Derivatives by Balance Sheet Location) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | ||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | $ 9,490 | [1] | $ 5,807 | [2] |
Derivative liabilities | 10,347 | [3] | 7,316 | [4] |
Other assets [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative assets | 9,490 | 5,807 | ||
Other liabilities [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liabilities | 10,347 | 7,316 | ||
Interest rate swaps [Member] | Designated as Hedging Instrument [Member] | Other assets [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Interest rate cash flow hedge asset at fair value | 0 | 0 | ||
Interest rate swaps [Member] | Designated as Hedging Instrument [Member] | Other liabilities [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Interest rate cash flow hedge liability at fair value | 0 | 497 | ||
Interest rate caps [Member] | Designated as Hedging Instrument [Member] | Other assets [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Interest rate cash flow hedge asset at fair value | 187 | 0 | ||
Interest rate caps [Member] | Designated as Hedging Instrument [Member] | Other liabilities [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Interest rate cash flow hedge liability at fair value | 0 | 0 | ||
Interest rate lock commitments [Member] | Not Designated as Hedging Instrument [Member] | Other assets [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset not designated as hedging instruments | 1,220 | 1,212 | ||
Interest rate lock commitments [Member] | Not Designated as Hedging Instrument [Member] | Other liabilities [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability not designated as hedging instruments | 0 | 20 | ||
Commitments to sell mortgage loans [Member] | Not Designated as Hedging Instrument [Member] | Other assets [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset not designated as hedging instruments | 0 | 13 | ||
Commitments to sell mortgage loans [Member] | Not Designated as Hedging Instrument [Member] | Other liabilities [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability not designated as hedging instruments | 2,012 | 2,028 | ||
Interest rate swaps with customers [Member] | Not Designated as Hedging Instrument [Member] | Other assets [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset not designated as hedging instruments | 8,027 | 4,554 | ||
Interest rate swaps with customers [Member] | Not Designated as Hedging Instrument [Member] | Other liabilities [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability not designated as hedging instruments | 0 | 23 | ||
Mirror swaps with counterparties [Member] | Not Designated as Hedging Instrument [Member] | Other assets [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset not designated as hedging instruments | 0 | 28 | ||
Mirror swaps with counterparties [Member] | Not Designated as Hedging Instrument [Member] | Other liabilities [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability not designated as hedging instruments | 8,266 | 4,748 | ||
Risk participation-out agreement [Member] | Not Designated as Hedging Instrument [Member] | Other assets [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative asset not designated as hedging instruments | 56 | 0 | ||
Risk participation-in agreement [Member] | Not Designated as Hedging Instrument [Member] | Other liabilities [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative liability not designated as hedging instruments | $ 69 | $ 0 | ||
[1] | Derivative assets include interest rate risk management agreements, interest rate swap contracts with customers, risk participation-out agreements and forward loan commitments and are included in other assets in the Consolidated Balance Sheets. | |||
[2] | Derivative assets include interest rate swap contracts with customers and forward loan commitments and are included in other assets in the Consolidated Balance Sheets. | |||
[3] | Derivative liabilities include mirror swaps with counterparties, risk participation-in agreements and forward loan commitments and are included in other liabilities in the Consolidated Balance Sheets. | |||
[4] | Derivative liabilities include mirror swaps with counterparties, interest rate risk management agreements and forward loan commitments and are included in other liabilities in the Consolidated Balance Sheets. |
Derivative Financial Instrume98
Derivative Financial Instruments (Derivatives in Cash Flow Hedging Relationships, Effect in Statements of Income and Changes in Shareholders' Equity) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | $ 244 | $ 331 | $ 388 |
Gain (Loss) Recognized in Income (Ineffective Portion) | 0 | 0 | 0 |
Interest Expense [Member] | Interest rate swaps [Member] | Cash Flow Hedge [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income (Ineffective Portion) | 0 | 0 | 0 |
Interest Expense [Member] | Interest rate caps [Member] | Cash Flow Hedge [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Income (Ineffective Portion) | 0 | 0 | 0 |
Other Comprehensive Income (Loss) [Member] | Interest rate swaps [Member] | Cash Flow Hedge [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | 288 | 331 | 388 |
Other Comprehensive Income (Loss) [Member] | Interest rate caps [Member] | Cash Flow Hedge [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | $ (44) | $ 0 | $ 0 |
Derivative Financial Instrume99
Derivative Financial Instruments (Derivatives not Designated as Hedging Instruments, Effect in Statements of Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivative | $ 0 | $ 0 | $ 0 |
Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivative | 2,472 | 494 | 2,448 |
Interest rate lock commitments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivative | 28 | 800 | (2,121) |
Interest rate lock commitments [Member] | Mortgage banking revenues [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivative | 28 | 800 | (2,121) |
Commitments to sell mortgage loans [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivative | 3 | (1,442) | 3,618 |
Commitments to sell mortgage loans [Member] | Mortgage banking revenues [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivative | 3 | (1,442) | 3,618 |
Interest rate swaps with customers [Member] | Loan related derivative income [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivative | 7,569 | 4,989 | 396 |
Mirror swaps with counterparties [Member] | Loan related derivative income [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivative | (4,904) | (3,853) | 555 |
Risk participation agreements [Member] | Loan related derivative income [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivative | $ (224) | $ 0 | $ 0 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | Aug. 01, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage loans held for sale, amortized cost | $ 33,238 | $ 29,542 | |
Mortgage loans held for sale, fair value | 33,969 | 30,321 | |
Mortgage loans held for sale difference between fair value and principal amount | 731 | 779 | |
Contingent consideration liability | $ 2,904 | ||
Earn-out period post acquisition | 5 years | ||
Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage loans held for sale, fair value | 33,969 | 30,321 | |
Recurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage loans held for sale, fair value | 0 | 0 | |
Nonrecurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Allowance for loan loss on collateral dependent impaired loans | $ 2,400 | $ 1,300 | |
Minimum [Member] | Recurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Discount rate for contingent consideration liability | 3.00% | ||
Maximum [Member] | Recurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Discount rate for contingent consideration liability | 4.00% |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Mortgage Loans Held For Sale, Interest Rate Lock Commitments And Commitments to Sell Changes in Fair Value Disclosures) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on mortgage loans held for sale | $ (48) | $ 598 | $ (1,505) |
Amount of Gain (Loss) Recognized in Income on Derivative | 0 | 0 | 0 |
Total change in fair value | (17) | (44) | (8) |
Interest rate lock commitments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivative | 28 | 800 | (2,121) |
Commitments to sell mortgage loans [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivative | $ 3 | $ (1,442) | $ 3,618 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale securities | $ 375,044 | $ 357,662 | |||
Mortgage loans held for sale, fair value | 33,969 | 30,321 | |||
Derivative assets | 9,490 | [1] | 5,807 | [2] | |
Derivative liabilities | 10,347 | [3] | 7,316 | [4] | |
Contingent consideration liability | [5] | 2,945 | |||
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 | 77,015 | 31,172 | |||
Mortgage-backed securities issued by U.S. government-sponsored agencies and U.S. government-sponsored enterprises [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale securities | 234,856 | 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 | 36,080 | 49,176 | |||
Individual name issuer trust preferred debt securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale securities | 25,138 | 25,774 | |||
Corporate bonds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale securities | 1,955 | 6,174 | |||
Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets | 0 | [1] | 0 | [2] | |
Derivative liabilities | 0 | [3] | 0 | [4] | |
Contingent consideration liability | [5] | 0 | |||
Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets | 9,490 | [1] | 5,807 | [2] | |
Derivative liabilities | 10,347 | [3] | 7,316 | [4] | |
Contingent consideration liability | [5] | 0 | |||
Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivative assets | 0 | [1] | 0 | [2] | |
Derivative liabilities | 0 | [3] | 0 | [4] | |
Contingent consideration liability | [5] | 2,945 | |||
Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mortgage loans held for sale, fair value | 33,969 | 30,321 | |||
Total assets at fair value on a recurring basis | 418,503 | 393,790 | |||
Total liabilities at fair value on a recurring basis | 13,292 | 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 | 77,015 | 31,172 | |||
Recurring [Member] | Mortgage-backed securities issued by U.S. government-sponsored agencies and U.S. government-sponsored enterprises [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale securities | 234,856 | 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 | 36,080 | 49,176 | |||
Recurring [Member] | Individual name issuer trust preferred debt securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale securities | 25,138 | 25,774 | |||
Recurring [Member] | Corporate bonds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale securities | 1,955 | 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, fair value | 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 U.S. government-sponsored agencies and U.S. government-sponsored enterprises [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale securities | 0 | 0 | |||
Recurring [Member] | Level 1 [Member] | 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 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale securities | 0 | 0 | |||
Recurring [Member] | Level 1 [Member] | Corporate bonds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale securities | 0 | 0 | |||
Recurring [Member] | Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mortgage loans held for sale, fair value | 33,969 | 30,321 | |||
Total assets at fair value on a recurring basis | 418,503 | 393,790 | |||
Total liabilities at fair value on a recurring basis | 10,347 | 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 | 77,015 | 31,172 | |||
Recurring [Member] | Level 2 [Member] | Mortgage-backed securities issued by U.S. government-sponsored agencies and U.S. government-sponsored enterprises [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale securities | 234,856 | 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 | 36,080 | 49,176 | |||
Recurring [Member] | Level 2 [Member] | Individual name issuer trust preferred debt securities [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale securities | 25,138 | 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 | 1,955 | 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, fair value | 0 | 0 | |||
Total assets at fair value on a recurring basis | 0 | 0 | |||
Total liabilities at fair value on a recurring basis | 2,945 | 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 U.S. government-sponsored agencies and U.S. government-sponsored enterprises [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale securities | 0 | 0 | |||
Recurring [Member] | Level 3 [Member] | 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 [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] | Corporate bonds [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale securities | $ 0 | $ 0 | |||
[1] | Derivative assets include interest rate risk management agreements, interest rate swap contracts with customers, risk participation-out agreements and forward loan commitments and are included in other assets in the Consolidated Balance Sheets. | ||||
[2] | Derivative assets include interest rate swap contracts with customers and forward loan commitments and are included in other assets in the Consolidated Balance Sheets. | ||||
[3] | Derivative liabilities include mirror swaps with counterparties, risk participation-in agreements and forward loan commitments and are included in other liabilities in the Consolidated Balance Sheets. | ||||
[4] | Derivative liabilities include mirror swaps with counterparties, interest rate risk management agreements and forward loan commitments and are included in other liabilities in the Consolidated Balance Sheets. | ||||
[5] | The contingent consideration liability is included in other liabilities in the Consolidated Balance Sheets. |
Fair Value Measurements (Ass103
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | [1] | $ 17,138 | $ 19,096 |
Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 10,545 | 5,728 | |
Property acquired through foreclosure or repossession | 270 | 348 | |
Total assets at fair value on a nonrecurring basis | 10,815 | 6,076 | |
Nonrecurring [Member] | Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 0 | 0 | |
Property acquired through foreclosure or repossession | 0 | 0 | |
Total assets at fair value on a nonrecurring basis | 0 | 0 | |
Nonrecurring [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 0 | 0 | |
Property acquired through foreclosure or repossession | 0 | 0 | |
Total assets at fair value on a nonrecurring basis | 0 | 0 | |
Nonrecurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 10,545 | 5,728 | |
Property acquired through foreclosure or repossession | 270 | 348 | |
Total assets at fair value on a nonrecurring basis | $ 10,815 | $ 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 collectability 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 ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Fair Value Inputs Assets Qualitative Information [Line Items] | |||
Collateral dependent impaired loans | [1] | $ 17,138 | $ 19,096 |
Nonrecurring [Member] | |||
Fair Value Inputs Assets Qualitative Information [Line Items] | |||
Collateral dependent impaired loans | 10,545 | 5,728 | |
Property acquired through foreclosure or repossession | 270 | 348 | |
Nonrecurring [Member] | Level 3 [Member] | |||
Fair Value Inputs Assets Qualitative Information [Line Items] | |||
Collateral dependent impaired loans | 10,545 | 5,728 | |
Property acquired through foreclosure or repossession | $ 270 | $ 348 | |
Nonrecurring [Member] | Level 3 [Member] | Appraisals Of Collateral [Member] | Collateral Dependent Impaired Loans [Member] | Minimum [Member] | |||
Fair Value Inputs Assets Qualitative Information [Line Items] | |||
Discount for costs to sell | 0.00% | 0.00% | |
Appraisal adjustments | 0.00% | ||
Nonrecurring [Member] | Level 3 [Member] | Appraisals Of Collateral [Member] | Collateral Dependent Impaired Loans [Member] | Maximum [Member] | |||
Fair Value Inputs Assets Qualitative Information [Line Items] | |||
Discount for costs to sell | 20.00% | 10.00% | |
Appraisal adjustments | 40.00% | ||
Nonrecurring [Member] | Level 3 [Member] | Appraisals Of Collateral [Member] | Collateral Dependent Impaired Loans [Member] | Weighted Average [Member] | |||
Fair Value Inputs Assets Qualitative Information [Line Items] | |||
Discount for costs to sell | 2.00% | 2.00% | |
Appraisal adjustments | 3.00% | ||
Nonrecurring [Member] | Level 3 [Member] | Appraisals Of Collateral [Member] | Property Acquired Through Foreclosure Or Repossession [Member] | Minimum [Member] | |||
Fair Value Inputs Assets Qualitative Information [Line Items] | |||
Discount for costs to sell | 12.00% | 6.00% | |
Appraisal adjustments | 32.00% | 5.00% | |
Nonrecurring [Member] | Level 3 [Member] | Appraisals Of Collateral [Member] | Property Acquired Through Foreclosure Or Repossession [Member] | Maximum [Member] | |||
Fair Value Inputs Assets Qualitative Information [Line Items] | |||
Discount for costs to sell | 12.00% | 10.00% | |
Appraisal adjustments | 32.00% | 23.00% | |
Nonrecurring [Member] | Level 3 [Member] | Appraisals Of Collateral [Member] | Property Acquired Through Foreclosure Or Repossession [Member] | Weighted Average [Member] | |||
Fair Value Inputs Assets Qualitative Information [Line Items] | |||
Discount for costs to sell | 12.00% | 8.00% | |
Appraisal adjustments | 32.00% | 14.00% | |
[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 collectability of the loan is not in doubt), the recorded investment also includes accrued interest. |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Amounts and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held to maturity securities | $ 20,023 | $ 25,222 |
Loans, net of allowance of loan losses | 2,986,058 | 2,831,253 |
Time deposits | 833,898 | 874,102 |
Federal Home Loan Bank advances | 378,973 | 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 | 20,023 | 25,222 |
Loans, net of allowance of loan losses | 2,986,058 | 2,831,253 |
Time deposits | 833,898 | 874,102 |
Federal Home Loan Bank advances | 378,973 | 406,297 |
Junior subordinated debentures | 22,681 | 22,681 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held to maturity securities | 20,516 | 26,008 |
Loans, net of allowance of loan losses | 3,004,782 | 2,866,907 |
Time deposits | 834,574 | 872,570 |
Federal Home Loan Bank advances | 388,275 | 418,005 |
Junior subordinated debentures | 16,468 | 17,201 |
Estimate of 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 |
Estimate of Fair Value Measurement [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held to maturity securities | 20,516 | 26,008 |
Loans, net of allowance of loan losses | 0 | 0 |
Time deposits | 834,574 | 872,570 |
Federal Home Loan Bank advances | 388,275 | 418,005 |
Junior subordinated debentures | 16,468 | 17,201 |
Estimate of 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 | 3,004,782 | 2,866,907 |
Time deposits | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Junior subordinated debentures | $ 0 | $ 0 |
Employee Benefits (Narrative) (
Employee Benefits (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | 120 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 30, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, employer matching contribution, percent of employee gross pay | 4.00% | |||
Defined contribution plan, employer matching contributions | $ 1,800 | $ 1,800 | $ 1,600 | |
Other incentive-based compensation expense | 14,300 | 13,800 | $ 13,400 | |
Deferred compensation plan, accrued liability | 8,600 | 7,700 | ||
Qualified Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated benefit obligation | 60,300 | 64,000 | ||
Estimated amortization of prior service cost (credit) from accumulated other comprehensive loss into net period benefit cost, next year | (23) | |||
Estimated amortization of (gain) loss from accumulated other comprehensive loss into net period benefit cost, next year | $ 828 | |||
Fair value of equity securities, maximum percentage held by a single issuer | 10.00% | |||
Estimated future employer contributions in next fiscal year | $ 8,500 | |||
Qualified Pension Plan [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocation, investment ranges, minimum | 50.00% | |||
Target plan asset allocation, investment ranges, maximum | 70.00% | |||
Qualified Pension Plan [Member] | Small-Cap Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocation, investment ranges, maximum | 20.00% | |||
Qualified Pension Plan [Member] | Mid-Cap Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocation, investment ranges, maximum | 20.00% | |||
Qualified Pension Plan [Member] | International Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocation, investment ranges, maximum | 30.00% | |||
Qualified Pension Plan [Member] | Fixed Income Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocation, investment ranges, minimum | 30.00% | |||
Target plan asset allocation, investment ranges, maximum | 50.00% | |||
Qualified Pension Plan [Member] | Cash and Cash Equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocation, investment ranges, minimum | 0.00% | |||
Target plan asset allocation, investment ranges, maximum | 10.00% | |||
Qualified Pension Plan [Member] | High Yield Bond [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target plan asset allocation, investment ranges, maximum | 10.00% | |||
Non-Qualified Retirement Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Available-for-sale securities and other short-term investments, rabbi trusts | $ 12,300 | 10,400 | ||
Accumulated benefit obligation | 11,700 | $ 12,100 | ||
Estimated amortization of prior service cost (credit) from accumulated other comprehensive loss into net period benefit cost, next year | (1) | |||
Estimated amortization of (gain) loss from accumulated other comprehensive loss into net period benefit cost, next year | 247 | |||
Estimated future employer contributions in next fiscal year | $ 788 | |||
Scenario, Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Transition Period Pension Plan Amendment | 10 years |
Employee Benefits (Schedule of
Employee Benefits (Schedule of Net Funded (Unfunded) Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Qualified Pension Plan [Member] | |||
Change in Benefit Obligation: | |||
Benefit obligation at beginning of period | $ 73,149 | $ 61,162 | |
Service cost | 2,459 | 2,152 | $ 2,720 |
Interest cost | 2,928 | 2,891 | 2,883 |
Actuarial (gain) loss | (5,410) | 11,081 | |
Benefits paid | (5,430) | (3,981) | |
Administrative expenses | (146) | (156) | |
Benefit obligation at end of period | 67,550 | 73,149 | 61,162 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of period | 67,613 | 62,060 | |
Actual return on plan assets | 673 | 3,690 | |
Employer contributions | 3,000 | 6,000 | |
Benefits paid | (5,430) | (3,981) | |
Administrative expenses | (146) | (156) | |
Fair value of plan assets at end of period | 65,710 | 67,613 | 62,060 |
Unfunded status at end of period | (1,840) | (5,536) | |
Non-Qualified Retirement Plans [Member] | |||
Change in Benefit Obligation: | |||
Benefit obligation at beginning of period | 13,097 | 10,784 | |
Service cost | 78 | 46 | 181 |
Interest cost | 490 | 478 | 462 |
Actuarial (gain) loss | 88 | 2,546 | |
Benefits paid | (738) | (757) | |
Administrative expenses | 0 | 0 | |
Benefit obligation at end of period | 13,015 | 13,097 | 10,784 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of period | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 738 | 757 | |
Benefits paid | (738) | (757) | |
Administrative expenses | 0 | 0 | |
Fair value of plan assets at end of period | 0 | 0 | $ 0 |
Unfunded status at end of period | $ (13,015) | $ (13,097) |
Employee Benefits (Components o
Employee Benefits (Components of Accumulated Other Comprehensive Income(Loss)) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Qualified Pension Plan [Member] | ||
Components of Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | ||
Net actuarial loss | $ 12,688 | $ 15,504 |
Prior service credit | (84) | (107) |
Total pre-tax amounts recognized in accumulated other comprehensive income | 12,604 | 15,397 |
Non-Qualified Retirement Plans [Member] | ||
Components of Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | ||
Net actuarial loss | 4,392 | 4,548 |
Prior service credit | (2) | (3) |
Total pre-tax amounts recognized in accumulated other comprehensive income | $ 4,390 | $ 4,545 |
Employee Benefits (Component109
Employee Benefits (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) (on a pre-tax basis): | ||||
Recognized in other comprehensive (loss) income | [1] | $ (2,948) | $ 13,493 | $ (20,406) |
Qualified Pension Plan [Member] | ||||
Net Periodic Benefit Cost: | ||||
Service cost | 2,459 | 2,152 | 2,720 | |
Interest cost | 2,928 | 2,891 | 2,883 | |
Expected return on plan assets | (4,515) | (4,063) | (3,725) | |
Amortization of prior service credit | (23) | (23) | (30) | |
Recognized net actuarial loss | 1,249 | 461 | 1,321 | |
Curtailments | 0 | 0 | (61) | |
Net periodic benefit cost | 2,098 | 1,418 | 3,108 | |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) (on a pre-tax basis): | ||||
Net (gain) loss | (2,816) | 10,993 | (14,572) | |
Prior service cost | 23 | 23 | 30 | |
Curtailment | 0 | 0 | (4,000) | |
Recognized in other comprehensive (loss) income | (2,793) | 11,016 | (18,542) | |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | (695) | 12,434 | (15,434) | |
Non-Qualified Retirement Plans [Member] | ||||
Net Periodic Benefit Cost: | ||||
Service cost | 78 | 46 | 181 | |
Interest cost | 490 | 478 | 462 | |
Expected return on plan assets | 0 | 0 | 0 | |
Amortization of prior service credit | (1) | (1) | (1) | |
Recognized net actuarial loss | 245 | 70 | 175 | |
Curtailments | 0 | 0 | (1) | |
Net periodic benefit cost | 812 | 593 | 816 | |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) (on a pre-tax basis): | ||||
Net (gain) loss | (156) | 2,476 | (1,506) | |
Prior service cost | 1 | 1 | 1 | |
Curtailment | 0 | 0 | (359) | |
Recognized in other comprehensive (loss) income | (155) | 2,477 | (1,864) | |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ 657 | $ 3,070 | $ (1,048) | |
[1] | Included in salaries and employee benefits expense in the Consolidated Statements of Income. |
Employee Benefits (Weighted-Ave
Employee Benefits (Weighted-Average Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Qualified Pension Plan [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.48% | 4.125% | |
Rate of compensation increase | 3.75% | 3.75% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.125% | 4.875% | 4.125% |
Expected long-term return on plan assets | 7.25% | 7.25% | 7.25% |
Rate of compensation increase | 3.75% | 3.75% | 3.75% |
Non-Qualified Retirement Plans [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.20% | 3.90% | |
Rate of compensation increase | 3.75% | 3.75% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 3.90% | 4.60% | 3.80% |
Expected long-term return on plan assets | 0.00% | 0.00% | 0.00% |
Rate of compensation increase | 3.75% | 3.75% | 3.75% |
Employee Benefits (Schedule 111
Employee Benefits (Schedule of Fair Value of Qualified Pension Plan Assets) (Details) - Qualified Pension Plan [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% | |
Fair value of plan assets | $ 65,710 | $ 67,613 | $ 62,060 |
Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 46,011 | 47,301 | |
Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 19,699 | 20,312 | |
Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 | |
Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 63.40% | 61.60% | |
Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 34.60% | 37.80% | |
Cash and Cash Equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 2.00% | 0.60% | |
Fair value of plan assets | $ 1,598 | $ 637 | |
Cash and Cash Equivalents [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,598 | 637 | |
Cash and Cash Equivalents [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and Cash Equivalents [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Obligations of U.S Government Agencies and U.S. Government-Sponsored Enterprises [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,306 | 4,197 | |
Obligations of U.S Government Agencies and U.S. Government-Sponsored Enterprises [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Obligations of U.S Government Agencies and U.S. Government-Sponsored Enterprises [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,306 | 4,197 | |
Obligations of U.S Government Agencies and U.S. Government-Sponsored Enterprises [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Obligations of states and political subdivisions [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,438 | 2,953 | |
Obligations of states and political subdivisions [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Obligations of states and political subdivisions [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,438 | 2,953 | |
Obligations of states and political subdivisions [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12,955 | 13,162 | |
Corporate bonds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Corporate bonds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12,955 | 13,162 | |
Corporate bonds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Common Stocks [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 29,433 | 31,172 | |
Common Stocks [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 29,433 | 31,172 | |
Common Stocks [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Common Stocks [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Mutual Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14,980 | 15,492 | |
Mutual Funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 14,980 | 15,492 | |
Mutual Funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Mutual Funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
Employee Benefits (Estimated Fu
Employee Benefits (Estimated Future Benefit Payments) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Qualified Pension Plan [Member] | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
Expected Future Payments, Next Twelve Months | $ 4,401 |
Expected Future Payments, Year Two | 2,992 |
Expected Future Payments, Year Three | 3,222 |
Expected Future Payments, Year Four | 3,032 |
Expected Future Payments, Year Five | 3,896 |
Expected Future Payments, Thereafter | 21,768 |
Non-Qualified Retirement Plans [Member] | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
Expected Future Payments, Next Twelve Months | 788 |
Expected Future Payments, Year Two | 782 |
Expected Future Payments, Year Three | 775 |
Expected Future Payments, Year Four | 804 |
Expected Future Payments, Year Five | 896 |
Expected Future Payments, Thereafter | $ 4,304 |
Share-Based Compensation Arr113
Share-Based Compensation Arrangements (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 23, 2013 | Apr. 28, 2009 | Apr. 22, 2003 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total unrecognized compensation cost | $ 3.1 | |||||
Weighted average recognition period (in years) | 2 years 1 month 1 day | |||||
Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share options exercised total intrinsic value | $ 1.2 | $ 1 | $ 1.7 | |||
Cliff vesting period (years) | 3 years | 3 years | ||||
Time Based Nonvested Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Nonvested share units | 16,275 | 11,630 | 24,400 | |||
Cliff vesting period (years) | 3 years | |||||
Performance Based Nonvested Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance share awards minimum shares earned to target percentage | 0.00% | |||||
Performance share awards maximum shares earned to target percentage | 200.00% | |||||
Nonvested share units | 47,451 | |||||
Cliff vesting period (years) | 3 years | |||||
Performance share awards, shares vesting | 110,891 | |||||
Minimum [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cliff vesting period (years) | 3 years | |||||
Minimum [Member] | Time Based Nonvested Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cliff vesting period (years) | 3 years | 3 years | ||||
Maximum [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cliff vesting period (years) | 5 years | |||||
Maximum [Member] | Time Based Nonvested Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cliff vesting period (years) | 5 years | 5 years | ||||
2013 Stock Option and Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized | 1,748,250 | |||||
Two Thousand Three Stock Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized | 600,000 | |||||
Two Thousand Three Stock Incentive Plan [Member] | Stock Options and Stock Appreciation Rights [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized | 200,000 | |||||
Amended and Restated Two Thousand Three Stock Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized | 1,200,000 | |||||
Amended and Restated Two Thousand Three Stock Incentive Plan [Member] | Stock Options and Stock Appreciation Rights [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares authorized | 400,000 |
Share-Based Compensation Arr114
Share-Based Compensation Arrangements (Compensation Cost for Share-based Compensation Arrangements) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Share-based compensation expense | $ 2,074 | $ 1,880 | $ 1,876 |
Related income tax benefit | $ 767 | $ 676 | $ 673 |
Share-Based Compensation Arr115
Share-Based Compensation Arrangements (Share Options Fair Value Assumptions) (Details) - Stock Options [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted | 48,600 | 25,850 | 54,600 |
Cliff vesting period (years) | 3 years | 3 years | |
Expected term (years) | 7 years 6 months | 8 years | 8 years |
Expected dividend yield | 3.94% | 3.83% | 3.77% |
Weighted average expected volatility | 40.76% | 41.84% | 42.85% |
Weighted average risk-free interest rate | 1.95% | 2.27% | 2.46% |
Weighted average grant-date fair value | $ 11.15 | $ 9.92 | $ 10.35 |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cliff vesting period (years) | 3 years | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cliff vesting period (years) | 5 years |
Share-Based Compensation Arr116
Share-Based Compensation Arrangements (Share Options Activity) (Details) - Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of Share Options: | |||
Beginning of period | 357,477 | ||
Granted | 48,600 | 25,850 | 54,600 |
Exercised | (87,625) | ||
Forfeited or expired | (9,336) | ||
End of period | 309,116 | 357,477 | |
Options exercisable | 189,791 | ||
Options expected to vest in future periods | 119,325 | ||
Weighted Average Exercise Price (in dollars per share): | |||
Beginning of period | $ 24.99 | ||
Granted | 39.40 | ||
Exercised | 25.55 | ||
Forfeited or expired | 33.74 | ||
End of period | 26.84 | $ 24.99 | |
Options exercisable | 21.78 | ||
Options expected to vest in future periods | $ 34.89 | ||
Outstanding Weighted Average Remaining Contractual Term | 6 years 5 days | ||
Exercisable Weighted Average Remaining Contractual Term | 4 years 4 months 2 days | ||
Expected to Vest Weighted Average Remaining Contractual Term | 8 years 8 months 2 days | ||
Outstanding Aggregate Intrinsic Value | $ 3,921 | ||
Exercisable Aggregate Intrinsic Value | 3,368 | ||
Expected to Vest Aggregate Intrinsic Value | $ 554 |
Share-Based Compensation Arr117
Share-Based Compensation Arrangements (Stock Options Outstanding and Options Exercisable) (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Number of Share Options | shares | 309,116 |
Options Outstanding, Weighted Average Remaining Life (Years) | 6 years 5 days |
Options Outstanding, Weighted Average Exercise Price | $ 26.84 |
Options Exercisable, Number of Share Options | shares | 189,791 |
Options Exercisable, Weighted Average Exercise Price | $ 21.78 |
$15.01 to $20.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Ranges, Lower Range Limit | 15.01 |
Exercise Price Ranges, Upper Range Limit | $ 20 |
Options Outstanding, Number of Share Options | shares | 53,132 |
Options Outstanding, Weighted Average Remaining Life (Years) | 3 years 10 months 25 days |
Options Outstanding, Weighted Average Exercise Price | $ 17.61 |
Options Exercisable, Number of Share Options | shares | 53,132 |
Options Exercisable, Weighted Average Exercise Price | $ 17.61 |
$20.01 to $25.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Ranges, Lower Range Limit | 20.01 |
Exercise Price Ranges, Upper Range Limit | $ 25 |
Options Outstanding, Number of Share Options | shares | 138,870 |
Options Outstanding, Weighted Average Remaining Life (Years) | 4 years 8 months |
Options Outstanding, Weighted Average Exercise Price | $ 23.14 |
Options Exercisable, Number of Share Options | shares | 131,870 |
Options Exercisable, Weighted Average Exercise Price | $ 23.05 |
$25.01 to $30.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Ranges, Lower Range Limit | 25.01 |
Exercise Price Ranges, Upper Range Limit | $ 30 |
Options Outstanding, Number of Share Options | shares | 0 |
Options Outstanding, Weighted Average Remaining Life (Years) | 0 years |
Options Outstanding, Weighted Average Exercise Price | $ 0 |
Options Exercisable, Number of Share Options | shares | 0 |
Options Exercisable, Weighted Average Exercise Price | $ 0 |
$30.01 to $35.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Ranges, Lower Range Limit | 30.01 |
Exercise Price Ranges, Upper Range Limit | $ 35 |
Options Outstanding, Number of Share Options | shares | 70,214 |
Options Outstanding, Weighted Average Remaining Life (Years) | 7 years 9 months 7 days |
Options Outstanding, Weighted Average Exercise Price | $ 32.76 |
Options Exercisable, Number of Share Options | shares | 4,689 |
Options Exercisable, Weighted Average Exercise Price | $ 32.76 |
$35.01 to $40.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price Ranges, Lower Range Limit | 35.01 |
Exercise Price Ranges, Upper Range Limit | $ 40 |
Options Outstanding, Number of Share Options | shares | 46,900 |
Options Outstanding, Weighted Average Remaining Life (Years) | 9 years 8 months 26 days |
Options Outstanding, Weighted Average Exercise Price | $ 39.39 |
Options Exercisable, Number of Share Options | shares | 100 |
Options Exercisable, Weighted Average Exercise Price | $ 39.55 |
Share-Based Compensation Arr118
Share-Based Compensation Arrangements (Nonvested Share Units Activity) (Details) - Time Based Nonvested Shares [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Number of Shares: | |||
Beginning of period | 70,430 | ||
Granted | 16,275 | 11,630 | 24,400 |
Vested | (34,779) | ||
Forfeited | (4,701) | ||
End of period | 47,225 | 70,430 | |
Weighted Average Grant Date Fair Value (in dollars per share): | |||
Beginning of period | $ 27.34 | ||
Granted | 38.53 | ||
Vested | 23.95 | ||
Forfeited | 29.72 | ||
End of period | $ 33.46 | $ 27.34 |
Share-Based Compensation Arr119
Share-Based Compensation Arrangements (Nonvested Performance Shares Outstanding) (Details) - Performance Based Nonvested Shares [Member] | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share awards, shares vesting | 110,891 |
2015 Grant [Domain] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share awards granted, grant date fair value | $ / shares | $ 38.02 |
Performance share awards, shares vesting percentages | 152.00% |
Performance share awards, shares vesting | 47,451 |
2014 Grant [Domain] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share awards granted, grant date fair value | $ / shares | $ 34.66 |
Performance share awards, shares vesting percentages | 139.00% |
Performance share awards, shares vesting | 21,049 |
2013 Grant [Domain] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share awards granted, grant date fair value | $ / shares | $ 26.05 |
Performance share awards, shares vesting percentages | 141.00% |
Performance share awards, shares vesting | 42,391 |
Share-Based Compensation Arr120
Share-Based Compensation Arrangements (Nonvested Performance Shares Activity) (Details) - Performance Based Nonvested Shares [Member] | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Number of Shares: | |
Beginning of period | shares | 99,696 |
Granted | shares | 47,451 |
Vested | shares | (35,743) |
Forfeited | shares | (513) |
End of period | shares | 110,891 |
Weighted Average Grant Date Fair Value (in dollars per share): | |
Beginning of period | $ / shares | $ 27.12 |
Granted | $ / shares | 38.02 |
Vested | $ / shares | 23.65 |
Forfeited | $ / shares | 30.39 |
End of period | $ / shares | $ 32.81 |
Business Segments (Statement of
Business Segments (Statement of Operations and Total Assets by Reportable Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | $ 103,982 | $ 99,505 | $ 91,785 |
Provision for loan losses | 1,050 | 1,850 | 2,400 |
Net interest income after provision for loan losses | 102,932 | 97,655 | 89,385 |
Noninterest income (expense) | 58,340 | 59,015 | 62,080 |
Depreciation and amortization expense | 4,285 | 3,777 | 3,963 |
Other noninterest expenses | 92,644 | 93,070 | 94,822 |
Total noninterest expense | 96,929 | 96,847 | 98,785 |
Income before income taxes | 64,343 | 59,823 | 52,680 |
Income tax expense (benefit) | 20,878 | 18,999 | 16,527 |
Net income | 43,465 | 40,824 | 36,153 |
Total assets at period end | 3,771,604 | 3,586,874 | 3,188,867 |
Expenditures for long-lived assets | 5,479 | 5,226 | 1,491 |
Commercial Banking [Member] | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | 84,757 | 80,500 | 79,633 |
Provision for loan losses | 1,050 | 1,850 | 2,400 |
Net interest income after provision for loan losses | 83,707 | 78,650 | 77,233 |
Noninterest income (expense) | 20,618 | 17,575 | 30,769 |
Depreciation and amortization expense | 2,584 | 2,447 | 2,473 |
Other noninterest expenses | 55,203 | 52,639 | 61,976 |
Total noninterest expense | 57,787 | 55,086 | 64,449 |
Income before income taxes | 46,538 | 41,139 | 43,553 |
Income tax expense (benefit) | 15,330 | 13,497 | 14,598 |
Net income | 31,208 | 27,642 | 28,955 |
Total assets at period end | 3,152,231 | 2,986,453 | 2,517,059 |
Expenditures for long-lived assets | 4,714 | 3,474 | 1,286 |
Wealth Management Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | (47) | (24) | 7 |
Provision for loan losses | 0 | 0 | 0 |
Net interest income after provision for loan losses | (47) | (24) | 7 |
Noninterest income (expense) | 35,416 | 33,378 | 31,825 |
Depreciation and amortization expense | 1,488 | 1,127 | 1,277 |
Other noninterest expenses | 25,632 | 22,386 | 20,494 |
Total noninterest expense | 27,120 | 23,513 | 21,771 |
Income before income taxes | 8,249 | 9,841 | 10,061 |
Income tax expense (benefit) | 3,475 | 3,724 | 3,724 |
Net income | 4,774 | 6,117 | 6,337 |
Total assets at period end | 63,801 | 52,720 | 50,297 |
Expenditures for long-lived assets | 411 | 1,578 | 112 |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | 19,272 | 19,029 | 12,145 |
Provision for loan losses | 0 | 0 | 0 |
Net interest income after provision for loan losses | 19,272 | 19,029 | 12,145 |
Noninterest income (expense) | 2,306 | 8,062 | (514) |
Depreciation and amortization expense | 213 | 203 | 213 |
Other noninterest expenses | 11,809 | 18,045 | 12,352 |
Total noninterest expense | 12,022 | 18,248 | 12,565 |
Income before income taxes | 9,556 | 8,843 | (934) |
Income tax expense (benefit) | 2,073 | 1,778 | (1,795) |
Net income | 7,483 | 7,065 | 861 |
Total assets at period end | 555,572 | 547,701 | 621,511 |
Expenditures for long-lived assets | $ 354 | $ 174 | $ 93 |
Other Comprehensive Income (122
Other Comprehensive Income (Loss) (Activity in Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||||
Change in fair value of securities available for sale, before tax | $ (10,586) | ||||
Change in fair value of securities available for sale, tax | (3,890) | ||||
Change is fair value of securities available for sale | $ (3,171) | $ 1,021 | (6,696) | ||
Net (gains) losses on securities classified into earnings, before tax | [1] | 294 | |||
Net (gains) losses on securities classified into earnings, tax | [1] | 106 | |||
Net (gains) losses on securities classified into earnings | 0 | 0 | 188 | [1] | |
Net change in fair value of securities available for sale, before tax | (4,926) | 1,601 | (10,292) | ||
Net change in fair value of securities available for sale, tax | (1,755) | 580 | (3,784) | ||
Net change in fair value of securities available for sale | (3,171) | 1,021 | (6,508) | ||
Reclassification adjustment for other-than-temporary impairment losses transferred into earnings, before tax | [2] | 3,195 | |||
Reclassification adjustment for other-than-temporary impairment losses transferred into earnings, tax | [2] | 1,258 | |||
Reclassification adjustment for other-than-temporary impairment losses transferred into earnings | 0 | 0 | 1,937 | [2] | |
Net change in fair value of cash flow hedges, before tax | (102) | (56) | (58) | ||
Net change in fair value of cash flow hedges, tax | (49) | (18) | (23) | ||
Change in fair value of cash flow hedges | (53) | (38) | (35) | ||
Net cash flow hedge losses reclassified into earnings, before tax | [3] | 469 | 577 | 657 | |
Net cash flow hedge losses reclassified into earnings, tax | [3] | 172 | 208 | 234 | |
Net cash flow hedge losses reclassified into earnings | [3] | 297 | 369 | 423 | |
Change in fair value of cash flow hedges, before tax | 367 | 521 | 599 | ||
Change in fair value of cash flow hedges, tax | 123 | 190 | 211 | ||
Net change in fair value of cash flow hedges | 244 | 331 | 388 | ||
Defined benefit plan obligation adjustment, before tax | [4] | 2,948 | (13,493) | 20,406 | |
Defined benefit plan obligation adjustment, tax | [4] | 911 | (4,885) | 7,277 | |
Defined benefit plan obligation adjustment | [4] | 2,037 | (8,608) | 13,129 | |
Total other comprehensive income (loss), before tax | (1,611) | (11,371) | 13,908 | ||
Total other comprehensive income (loss), tax | (721) | (4,115) | 4,962 | ||
Total other comprehensive (loss) income, net of tax | (890) | (7,256) | 8,946 | ||
Net Unrealized Gains on AFS Securities [Member] | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||||
Total other comprehensive (loss) income, net of tax | $ (3,171) | $ 1,021 | $ (6,508) | ||
[1] | Reported as net realized gains on securities and total other-than-temporary impairment losses on securities in the Consolidated Statements of Income. | ||||
[2] | Reported as the portion of loss recognized in other comprehensive income in the Consolidated Statements of Income. | ||||
[3] | Included in interest expense on junior subordinated debentures in the Consolidated Statements of Income. | ||||
[4] | Included in salaries and employee benefits expense in the Consolidated Statements of Income. |
Other Comprehensive Income (123
Other Comprehensive Income (Loss) (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated other comprehensive income (loss), beginning balance | $ (8,809) | ||
Net other comprehensive income (loss) | (890) | $ (7,256) | $ 8,946 |
Accumulated other comprehensive income (loss), ending balance | (9,699) | (8,809) | |
Net Unrealized Gains on AFS Securities [Member] | |||
Accumulated other comprehensive income (loss), beginning balance | 4,222 | 3,201 | 9,709 |
Other comprehensive income (loss) before reclassifications, net of tax | (3,171) | 1,021 | (6,808) |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 | 300 |
Net other comprehensive income (loss) | (3,171) | 1,021 | (6,508) |
Accumulated other comprehensive income (loss), ending balance | 1,051 | 4,222 | 3,201 |
Accumulated Other-than-Temporary Impairment [Member] | |||
Accumulated other comprehensive income (loss), beginning balance | 0 | 0 | (1,937) |
Other comprehensive income (loss) before reclassifications, net of tax | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 | 1,937 |
Net other comprehensive income (loss) | 0 | 0 | 1,937 |
Accumulated other comprehensive income (loss), ending balance | 0 | 0 | 0 |
Net Unrealized Losses on Cash Flow Hedges [Member] | |||
Accumulated other comprehensive income (loss), beginning balance | (287) | (618) | (1,006) |
Other comprehensive income (loss) before reclassifications, net of tax | (53) | (38) | (35) |
Amounts reclassified from accumulated other comprehensive income, net of tax | 297 | 369 | 423 |
Net other comprehensive income (loss) | 244 | 331 | 388 |
Accumulated other comprehensive income (loss), ending balance | (43) | (287) | (618) |
Pension Benefit Adjustment [Member] | |||
Accumulated other comprehensive income (loss), beginning balance | (12,744) | (4,136) | (17,265) |
Other comprehensive income (loss) before reclassifications, net of tax | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income, net of tax | 2,037 | (8,608) | 13,129 |
Net other comprehensive income (loss) | 2,037 | (8,608) | 13,129 |
Accumulated other comprehensive income (loss), ending balance | (10,707) | (12,744) | (4,136) |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated other comprehensive income (loss), beginning balance | (8,809) | (1,553) | (10,499) |
Other comprehensive income (loss) before reclassifications, net of tax | (3,224) | 983 | (6,843) |
Amounts reclassified from accumulated other comprehensive income, net of tax | 2,334 | (8,239) | 15,789 |
Net other comprehensive income (loss) | (890) | (7,256) | 8,946 |
Accumulated other comprehensive income (loss), ending balance | $ (9,699) | $ (8,809) | $ (1,553) |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Net income | $ 43,465 | $ 40,824 | $ 36,153 |
Less dividends and undistributed earnings allocated to participating securities | (126) | (152) | (156) |
Net income applicable to common shareholders | $ 43,339 | $ 40,672 | $ 35,997 |
Weighted average common shares outstanding - basic (in shares) | 16,879,000 | 16,689,000 | 16,506,000 |
Basic earnings per common share (in dollars per share) | $ 2.57 | $ 2.44 | $ 2.18 |
Less dividends and undistributed earnings allocated to participating securities | $ (126) | $ (151) | $ (155) |
Net income applicable to common shareholders | $ 43,339 | $ 40,673 | $ 35,998 |
Dilutive effect of common stock equivalents (in shares) | 188,000 | 183,000 | 158,000 |
Weighted average common shares outstanding - diluted (in shares) | 17,067,000 | 16,872,000 | 16,664,000 |
Diluted earnings per common share (in dollars per share) | $ 2.54 | $ 2.41 | $ 2.16 |
Antidilutive common stock equivalents | 34,850 | 59,234 | 23,286 |
Commitments and Contingencie125
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Line Items] | |||
Standby letters of credit extension period | 1 year | ||
Operating leases rental expense | $ 3,500 | $ 3,100 | $ 2,800 |
Unpaid principal balance of loans repurchased | 534 | 342 | |
Reserve for loans repurchases | $ 180 | 280 | |
Minimum [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Lease expiration period | 4 months | ||
Lease expiration period, renewal option | 6 months | ||
Maximum [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Lease expiration period | 25 years | ||
Lease expiration period, renewal option | 25 years | ||
Commitments to Extend Credit on Standby Letters of Credit [Member] | Commitments to Extend Credit [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Contract Amount | $ 5,629 | $ 5,102 |
Commitments and Contingencie126
Commitments and Contingencies (Financial Instruments with Off Balance Sheet Risk) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Interest rate lock commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | $ 49,712 | $ 40,015 |
Commitments to sell mortgage loans [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 87,498 | 84,808 |
Interest rate swaps with customers [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 302,142 | 165,795 |
Mirror swaps with counterparties [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 302,142 | 165,795 |
Risk participation-in agreement [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 21,474 | 0 |
Interest rate swaps [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 0 | 22,681 |
Commitments to Extend Credit [Member] | Commitments to extend credit on commerical loans [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract Amount | 360,795 | 325,402 |
Commitments to Extend Credit [Member] | Commitments to extend credit on home equity lines [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract Amount | 219,427 | 200,932 |
Commitments to Extend Credit [Member] | Commitments to extend credit on other loans [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract Amount | 44,164 | 48,551 |
Commitments to Extend Credit [Member] | Commitments to Extend Credit on Standby Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract Amount | $ 5,629 | $ 5,102 |
Commitments and Contingencie127
Commitments and Contingencies (Schedule of Future Minimum Operating Lease Payments) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Future Minimum Payments, Next Twelve Months | $ 3,110 |
Future Minimum Payments, Year Two | 2,841 |
Future Minimum Payments, Year Three | 2,551 |
Future Minimum Payments, Year Four | 2,273 |
Future Minimum Payments, Year Five | 1,631 |
Future Minimum Payments, Thereafter | 25,535 |
Total minimum lease payments | $ 37,941 |
Parent Company Financial Sta128
Parent Company Financial Statements (Balance Sheet) (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Assets: | |||||
Interest-bearing balances due from banks | $ 48,200 | $ 42,700 | |||
Other assets | 59,365 | 54,987 | |||
Total assets | 3,771,604 | 3,586,874 | $ 3,188,867 | ||
Liabilities: | |||||
Junior subordinated debentures | 22,681 | 22,681 | |||
Contingent consideration liability | [1] | 2,945 | |||
Other liabilities | 60,307 | 56,799 | |||
Total liabilities | 3,396,216 | 3,240,595 | |||
Shareholders’ Equity: | |||||
Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 17,019,578 shares in 2015 and 16,746,363 shares in 2014 | 1,064 | 1,047 | |||
Paid-in capital | 110,949 | 101,204 | |||
Retained earnings | 273,074 | 252,837 | |||
Accumulated other comprehensive loss | (9,699) | (8,809) | |||
Total shareholders’ equity | 375,388 | 346,279 | $ 329,646 | $ 295,652 | |
Total liabilities and shareholders’ equity | $ 3,771,604 | $ 3,586,874 | |||
Common stock, par value (in dollars per share) | $ 0.0625 | $ 0.0625 | |||
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 | |||
Common stock, shares issued (in shares) | 17,019,578 | 16,746,363 | |||
Common stock, shares outstanding (in shares) | 17,019,578 | 16,746,363 | |||
Parent Company [Member] | |||||
Assets: | |||||
Cash on deposit with bank subsidiary | $ 3,169 | $ 2,998 | |||
Interest-bearing balances due from banks | 0 | 939 | |||
Investment in subsidiaries at equity value | 398,520 | 365,766 | |||
Dividends receivable from subsidiaries | 5,082 | 5,101 | |||
Other assets | 377 | 311 | |||
Total assets | 407,148 | 375,115 | |||
Liabilities: | |||||
Junior subordinated debentures | 22,681 | 22,681 | |||
Dividends payable | 6,075 | 5,617 | |||
Contingent consideration liability | 2,945 | 0 | |||
Other liabilities | 59 | 538 | |||
Total liabilities | 31,760 | 28,836 | |||
Shareholders’ Equity: | |||||
Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 17,019,578 shares in 2015 and 16,746,363 shares in 2014 | 1,064 | 1,047 | |||
Paid-in capital | 110,949 | 101,204 | |||
Retained earnings | 273,074 | 252,837 | |||
Accumulated other comprehensive loss | (9,699) | (8,809) | |||
Total shareholders’ equity | 375,388 | 346,279 | |||
Total liabilities and shareholders’ equity | $ 407,148 | $ 375,115 | |||
[1] | The contingent consideration liability is included in other liabilities in the Consolidated Balance Sheets. |
Parent Company Financial Sta129
Parent Company Financial Statements (Statement of Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Expenses: | |||
Interest on junior subordinated debentures | $ 871 | $ 964 | $ 1,484 |
Legal and professional fees | 2,741 | 2,336 | 2,330 |
Acquisition related expenses | 989 | 0 | 0 |
Income before income taxes | 64,343 | 59,823 | 52,680 |
Income tax benefit | (20,878) | (18,999) | (16,527) |
Net income | 43,465 | 40,824 | 36,153 |
Parent Company [Member] | |||
Income: | |||
Dividends from subsidiaries | 23,399 | 20,116 | 24,481 |
Other income | 13 | 13 | 20 |
Total income | 23,412 | 20,129 | 24,501 |
Expenses: | |||
Interest on junior subordinated debentures | 871 | 964 | 1,484 |
Legal and professional fees | 134 | 96 | 145 |
Acquisition related expenses | 308 | 0 | 0 |
Other | 295 | 253 | 279 |
Total expenses | 1,608 | 1,313 | 1,908 |
Income before income taxes | 21,804 | 18,816 | 22,593 |
Income tax benefit | 557 | 454 | 661 |
Income before equity in undistributed earnings of subsidiaries | 22,361 | 19,270 | 23,254 |
Equity in undistributed earnings of subsidiaries | 21,104 | 21,554 | 12,899 |
Net income | $ 43,465 | $ 40,824 | $ 36,153 |
Parent Company Financial Sta130
Parent Company Financial Statements (Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 43,465 | $ 40,824 | $ 36,153 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Decrease in other assets | 4,458 | 8,250 | (1,717) |
Net cash provided by operating activities | 51,566 | 2,648 | 79,816 |
Cash flows from investing activities: | |||
Repayment of investment in capital trust | 0 | 0 | 310 |
Cash used in business combination, net of cash acquired | (1,671) | 0 | 0 |
Net cash used in investing activities | (165,885) | (357,372) | (184,062) |
Cash flows from financing activities: | |||
Proceeds from stock option exercises and issuance of other equity instruments | 1,563 | 1,189 | 3,681 |
Tax benefit from stock option exercises and other equity instruments | 694 | 578 | 570 |
Redemption of junior subordinated debentures | 0 | 0 | (10,310) |
Cash dividends paid | (22,770) | (19,722) | (16,628) |
Net cash provided by financing activities | 131,600 | 349,757 | 96,913 |
Net increase (decrease) in cash and cash equivalents | 17,281 | (4,967) | (7,333) |
Cash and cash equivalents at beginning of year | 80,350 | 85,317 | 92,650 |
Cash and cash equivalents at end of year | 97,631 | 80,350 | 85,317 |
Parent Company [Member] | |||
Cash flows from operating activities: | |||
Net income | 43,465 | 40,824 | 36,153 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in undistributed earnings of subsidiary | (21,104) | (21,554) | (12,899) |
Increase in dividend receivable | 19 | (495) | (408) |
Decrease in other assets | (67) | 183 | 397 |
Decrease in accrued expenses and other liabilities | 2,466 | (516) | (621) |
Other, net | (3,363) | (245) | (214) |
Net cash provided by operating activities | 21,416 | 18,197 | 22,408 |
Cash flows from investing activities: | |||
Repayment of investment in capital trust | 0 | 0 | 310 |
Cash used in business combination, net of cash acquired | (1,671) | 0 | 0 |
Net cash used in investing activities | (1,671) | 0 | 310 |
Cash flows from financing activities: | |||
Issuance of treasury stock, including net deferred compensation plan activity | 0 | 0 | 30 |
Proceeds from stock option exercises and issuance of other equity instruments | 1,563 | 1,189 | 3,651 |
Tax benefit from stock option exercises and other equity instruments | 694 | 578 | 570 |
Redemption of junior subordinated debentures | 0 | 0 | (10,310) |
Cash dividends paid | (22,770) | (19,722) | (16,628) |
Net cash provided by financing activities | (20,513) | (17,955) | (22,687) |
Net increase (decrease) in cash and cash equivalents | (768) | 242 | 31 |
Cash and cash equivalents at beginning of year | 3,937 | 3,695 | 3,664 |
Cash and cash equivalents at end of year | $ 3,169 | $ 3,937 | $ 3,695 |
Sale of Business Line (Narrativ
Sale of Business Line (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Sale of Business Line [Abstract] | |||
Gain on sale of business line, before tax | $ 0 | $ 6,265 | $ 0 |
Gain on sale of business line, after tax | $ 4,000 | ||
Earnings per share impact, gain on sale of business line | $ 0.24 | ||
Divestiture costs, before tax | $ 355 | ||
Divestiture costs, after tax | $ 227 | ||
Earnings per share impact, divestiture costs | $ 0.01 | ||
Net proceeds from the sale of business line | 0 | $ 7,205 | $ 0 |
Deferred revenue from sale of business line | 900 | ||
Merchant referral revenue earned | 180 | $ 180 | |
Deferred merchant referral revenue remaining | $ 540 |