DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
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-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 17,121,527 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Assets: | |||
Cash and due from banks | $ 126,752 | $ 93,222 | |
Short-term investments | 2,420 | 4,409 | |
Mortgage loans held for sale | 45,162 | 38,554 | |
Securities: | |||
Available for sale, at fair value | 564,256 | 375,044 | |
Held to maturity, at amortized cost | 16,848 | 20,023 | |
Total securities | 581,104 | 395,067 | |
Federal Home Loan Bank stock, at cost | 37,249 | 24,316 | |
Loans: | |||
Commercial | 1,757,215 | 1,654,547 | |
Residential real estate | 1,079,887 | 1,013,555 | |
Consumer | 344,253 | 345,025 | |
Total loans | [1] | 3,181,355 | 3,013,127 |
Less allowance for loan losses | 25,649 | 27,069 | |
Net loans | 3,155,706 | 2,986,058 | |
Premises and equipment, net | 29,433 | 29,593 | |
Investment in bank-owned life insurance | 70,557 | 65,501 | |
Goodwill | 64,059 | 64,059 | |
Identifiable intangible assets, net | 10,493 | 11,460 | |
Other assets | 81,099 | 59,365 | |
Total assets | 4,204,034 | 3,771,604 | |
Liabilities: | |||
Demand deposits | 566,027 | 537,298 | |
NOW accounts | 404,827 | 412,602 | |
Money market accounts | 794,905 | 823,490 | |
Savings accounts | 357,966 | 326,967 | |
Time deposits | 913,649 | 833,898 | |
Total deposits | 3,037,374 | 2,934,255 | |
Federal Home Loan Bank advances | 671,615 | 378,973 | |
Junior subordinated debentures | 22,681 | 22,681 | |
Other liabilities | 77,037 | 60,307 | |
Total liabilities | 3,808,707 | 3,396,216 | |
Commitments and contingencies | |||
Shareholders' Equity: | |||
Common stock | 1,069 | 1,064 | |
Paid-in capital | 113,290 | 110,949 | |
Retained earnings | 288,613 | 273,074 | |
Accumulated other comprehensive loss | (7,645) | (9,699) | |
Total shareholders' equity | 395,327 | 375,388 | |
Total liabilities and shareholders’ equity | $ 4,204,034 | $ 3,771,604 | |
[1] | Includes net unamortized loan origination costs of $2.8 million and $2.6 million, respectively, at September 30, 2016 and December 31, 2015 and net unamortized premiums on purchased loans of $641 thousand and $84 thousand, respectively, at September 30, 2016 and December 31, 2015. |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Mortgage loans held for sale, measured at fair value | $ 45,162 | $ 33,969 |
Securities held to maturity, fair value | $ 17,492 | $ 20,516 |
Common stock, par value | $ 0.0625 | $ 0.0625 |
Common stock, shares authorized | 60,000,000 | 30,000,000 |
Common stock, shares issued | 17,107,476 | 17,019,578 |
Common stock, shares outstanding | 17,107,476 | 17,019,578 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest income: | ||||
Interest and fees on loans | $ 29,633 | $ 28,626 | $ 88,753 | $ 85,718 |
Interest on securities: Taxable | 3,024 | 2,178 | 7,881 | 6,613 |
Interest on securities: Nontaxable | 218 | 366 | 825 | 1,203 |
Dividends on Federal Home Loan Bank stock | 288 | 309 | 729 | 638 |
Other interest income | 93 | 47 | 227 | 101 |
Total interest and dividend income | 33,256 | 31,526 | 98,415 | 94,273 |
Interest expense: | ||||
Deposits | 3,110 | 3,308 | 9,059 | 10,045 |
Federal Home Loan Bank advances | 2,641 | 1,987 | 7,106 | 5,780 |
Junior subordinated debentures | 125 | 232 | 356 | 714 |
Other interest expense | 1 | 2 | 4 | 7 |
Total interest expense | 5,877 | 5,529 | 16,525 | 16,546 |
Net interest income | 27,379 | 25,997 | 81,890 | 77,727 |
Provision for loan losses | 1,800 | 200 | 2,750 | 300 |
Net interest income after provision for loan losses | 25,579 | 25,797 | 79,140 | 77,427 |
Noninterest income: | ||||
Wealth management revenues | 9,623 | 8,902 | 28,278 | 26,249 |
Mortgage banking revenues | 3,734 | 1,990 | 8,642 | 7,319 |
Service charges on deposit accounts | 915 | 986 | 2,757 | 2,894 |
Card interchange fees | 870 | 849 | 2,527 | 2,389 |
Income from bank-owned life insurance | 521 | 498 | 2,110 | 1,480 |
Loan related derivative income | 1,178 | 327 | 2,331 | 1,689 |
Equity in earnings (losses) of unconsolidated subsidiaries | (88) | (69) | (265) | (224) |
Other income | 508 | 430 | 1,429 | 1,398 |
Total noninterest income | 17,261 | 13,913 | 47,809 | 43,194 |
Noninterest expense: | ||||
Salaries and employee benefits | 16,908 | 15,971 | 50,693 | 46,971 |
Net occupancy | 1,766 | 1,721 | 5,376 | 5,276 |
Equipment | 1,648 | 1,424 | 4,652 | 4,140 |
Outsourced services | 1,254 | 1,250 | 3,911 | 3,774 |
Legal, audit and professional fees | 691 | 630 | 1,982 | 1,916 |
FDIC deposit insurance costs | 504 | 467 | 1,488 | 1,376 |
Advertising and promotion | 370 | 356 | 1,055 | 1,201 |
Amortization of intangibles | 321 | 260 | 966 | 571 |
Debt prepayment penalties | 0 | 0 | 431 | 0 |
Acquisition related expenses | 0 | 504 | 0 | 937 |
Change in fair value of contingent consideration | (939) | 16 | (898) | 16 |
Other expenses | 2,127 | 1,939 | 6,474 | 6,190 |
Total noninterest expense | 24,650 | 24,538 | 76,130 | 72,368 |
Income before income taxes | 18,190 | 15,172 | 50,819 | 48,253 |
Income tax expense | 5,863 | 4,964 | 16,500 | 15,532 |
Net income | $ 12,327 | $ 10,208 | $ 34,319 | $ 32,721 |
Weighted average common shares outstanding - basic | 17,090 | 16,939 | 17,060 | 16,837 |
Weighted average common shares outstanding - diluted | 17,203 | 17,102 | 17,198 | 17,027 |
Per share information: | ||||
Basic earnings per common share | $ 0.72 | $ 0.60 | $ 2.01 | $ 1.94 |
Diluted earnings per common share | 0.72 | 0.60 | 1.99 | 1.92 |
Cash dividends declared per share | $ 0.37 | $ 0.34 | $ 1.09 | $ 1.02 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 12,327 | $ 10,208 | $ 34,319 | $ 32,721 | |
Other comprehensive income (loss), net of tax: | |||||
Net change in fair value of securities available for sale | (91) | 344 | 1,651 | (693) | |
Cash flow hedges: | |||||
Change in fair value of cash flow hedges | (4) | (1) | (94) | (10) | |
Net cash flow hedge losses reclassified into earnings | [1] | 0 | 82 | 0 | 265 |
Net change in fair value of cash flow hedges | (4) | 81 | (94) | 255 | |
Defined benefit plan obligation adjustment | [2] | 166 | 233 | 497 | 822 |
Total other comprehensive income (loss), net of tax | 71 | 658 | 2,054 | 384 | |
Total comprehensive income | $ 12,398 | $ 10,866 | $ 36,373 | $ 33,105 | |
[1] | Included in interest expense on junior subordinated debentures in the Consolidated Statements of Income. | ||||
[2] | Included in salaries and employee benefits expense in the Consolidated Statements of Income. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - 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, 2014 | 16,746,000 | ||||
Shareholders' Equity, Beginning Balance at Dec. 31, 2014 | $ 346,279 | $ 1,047 | $ 101,204 | $ 252,837 | $ (8,809) |
Net income | 32,721 | 32,721 | |||
Total other comprehensive income (loss), net of tax | 384 | 384 | |||
Cash dividends declared | (17,392) | (17,392) | |||
Share-based compensation | 1,640 | 1,640 | |||
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit, shares | 102,000 | ||||
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit | 1,465 | $ 7 | 1,458 | ||
Common Stock, Shares Outstanding, Ending Balance at Sep. 30, 2015 | 16,985,000 | ||||
Shareholders' Equity, Ending Balance at Sep. 30, 2015 | $ 370,527 | $ 1,062 | 109,724 | 268,166 | (8,425) |
Common Stock, Shares Outstanding, Beginning Balance at Dec. 31, 2015 | 17,019,578 | 17,020,000 | |||
Shareholders' Equity, Beginning Balance at Dec. 31, 2015 | $ 375,388 | $ 1,064 | 110,949 | 273,074 | (9,699) |
Net income | 34,319 | 34,319 | |||
Total other comprehensive income (loss), net of tax | 2,054 | 2,054 | |||
Cash dividends declared | (18,780) | (18,780) | |||
Share-based compensation | 1,634 | 1,634 | |||
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit, shares | 87,000 | ||||
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit | $ 712 | $ 5 | 707 | ||
Common Stock, Shares Outstanding, Ending Balance at Sep. 30, 2016 | 17,107,476 | 17,107,000 | |||
Shareholders' Equity, Ending Balance at Sep. 30, 2016 | $ 395,327 | $ 1,069 | $ 113,290 | $ 288,613 | $ (7,645) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 34,319 | $ 32,721 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 2,750 | 300 |
Depreciation of premises and equipment | 2,737 | 2,535 |
Net amortization of premium and discount | 1,802 | 1,149 |
Amortization of intangibles | 966 | 571 |
Share-based compensation | 1,634 | 1,640 |
Income from bank-owned life insurance | (2,110) | (1,480) |
Net gains on loan sales and commissions on loans originated for others | (8,682) | (7,296) |
Net gain on sale of portfolio loans | (135) | 0 |
Equity in earnings (losses) of unconsolidated subsidiaries | 265 | 224 |
Proceeds from sales of loans | 370,526 | 365,533 |
Loans originated for sale | (369,746) | (345,322) |
Change in fair value of contingent consideration liability | (898) | 16 |
(Increase) decrease in other assets | (22,719) | 2,683 |
Increase (decrease) in other liabilities | 17,635 | (5,075) |
Net cash provided by operating activities | 28,344 | 48,199 |
Cash flows from investing activities: | ||
Purchases of mortgage-backed securities available for sale | (248,221) | (1,525) |
Purchases of other investment securities available for sale | (70,495) | (63,229) |
Maturities and principal payments of mortgage-backed securities available for sale | 41,446 | 38,312 |
Maturities and principal payments of other investment securities available for sale | 89,441 | 58,583 |
Maturities and principal payments of mortgage-backed securities held to maturity | 3,029 | 3,893 |
Purchases of Federal Home Loan Bank stock | (12,933) | 0 |
Net increase in loans | (95,759) | (88,680) |
Net Proceeds from sale of portfolio loans | 510 | 0 |
Purchases of loans | (77,180) | (2,877) |
Proceeds from the sale of property acquired through foreclosure or repossession | 731 | 637 |
Purchases of premises and equipment | (2,608) | (3,220) |
Purchases of bank-owned life insurance | 5,000 | 0 |
Proceeds from bank-owned life insurance | 2,054 | 0 |
Cash used in business combination, net of cash acquired | 0 | 1,671 |
Net cash used in investing activities | (374,985) | (59,777) |
Cash flows from financing activities: | ||
Net increase (decrease) in deposits | 103,119 | 81,462 |
Proceeds from Federal Home Loan Bank advances | 981,250 | 348,000 |
Repayment of Federal Home Loan Bank advances | (688,608) | (372,648) |
Proceeds from stock option exercises and issuance of other equity instruments | 282 | 946 |
Tax benefit from stock option exercises and other equity instruments | 430 | 518 |
Cash dividends paid | (18,291) | (16,976) |
Net cash provided by financing activities | 378,182 | 41,302 |
Net increase in cash and cash equivalents | 31,541 | 29,724 |
Cash and cash equivalents at beginning of period | 97,631 | 80,350 |
Cash and cash equivalents at end of period | 129,172 | 110,074 |
Noncash Investing and Financing Activities: | ||
Loans charged off | 4,390 | 1,401 |
Loans transferred to property acquired through foreclosure or repossession | 1,045 | 491 |
Supplemental Disclosures: | ||
Common stock issued for acquisition | 0 | 5,430 |
Fair value of assets acquired, net of cash acquired | 0 | 14,315 |
Fair value of liabilities assumed | 0 | 7,214 |
Interest payments | 16,093 | 16,690 |
Income tax payments | $ 14,860 | $ 14,995 |
General Information
General Information | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General Information | General Information Washington Trust Bancorp, Inc. (the “Bancorp”) is a publicly-owned registered bank holding company and financial holding company. The Bancorp owns all of the outstanding common stock of The Washington Trust Company, of Westerly (the “Bank”), a Rhode Island chartered commercial bank founded in 1800. Through its subsidiaries, the Bancorp offers a complete product line of financial services including commercial, residential and consumer lending, retail and commercial deposit products, and wealth management services through its offices in Rhode Island, eastern Massachusetts and Connecticut. The consolidated financial statements include the accounts of the Bancorp and its subsidiaries (collectively, the “Corporation” or “Washington Trust”). All significant intercompany transactions have been eliminated. 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. The unaudited consolidated financial statements of the Corporation presented herein have been prepared pursuant to the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying consolidated financial statements have been included. Interim results are not necessarily reflective of the results of the entire year. The accompanying unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2015 . |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements 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. In 2016, Accounting Standards Update No. 2016-08, “Principal versus Agent Considerations” (“ASU 2016-08”), Accounting Standards Update No. 2016-10, “Identifying Performance Obligations and Licensing” (“ASU 2016-10”) and Accounting Standards Update No. 2016-12, “Narrow-Scope Improvements and Practical Expedients” (“ASU 2016-12”) were issued. These ASUs do not change the core principle for revenue recognition in Topic 606; instead, the amendments provide more detailed guidance in a few areas and additional implementation guidance and examples, which are expected to reduce the degree of judgment necessary to comply with Topic 606. The effective date and transition requirements for ASU 2016-08, ASU 2016-10 and ASU 2016-12 are the same as those provided by ASU 2015-14. The Corporation is currently evaluating the impact that ASU 2014-09 will have on its consolidated financial statements. 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 is currently evaluating the impact that ASU 2016-01 will have on its consolidated financial statements. 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 is currently evaluating the impact that ASU 2016-02 will have on its consolidated financial statements. Stock Compensation - Topic 718 Accounting Standards Update No. 2016-09, “Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”), was issued in March 2016. ASU 2016-09 includes multiple provisions intended to simplify several aspects of the accounting for share-based payment transactions, including income tax consequences and the classification of certain tax-related transactions on the statement of cash flows. ASU 2016-09 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. Early adoption is permitted in any interim or annual period. Amendments should be applied using the appropriate transition method as detailed by the provisions of ASU 2016-09. The Corporation is currently evaluating the impact that ASU 2016-09 will have on its consolidated financial statements. Derivatives and Hedging - Topic 815 Accounting Standards Update No. 2016-05, “Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships” (“ASU 2016-05”), was issued in March 2016. ASU 2016-05 clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU 2016-05 allows for either a prospective approach or modified retrospective approach for adoption. ASU 2016-05 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. Early adoption is permitted. ASU 2016-05 is not expected to have a material impact on the Corporation’s consolidated financial statements. Accounting Standards Update No. 2016-06, “Contingent Put and Call Options in Debt Instruments” (“ASU 2016-06”), was issued in March 2016. ASU 2016-06 clarifies the requirements for assessing whether contingent call or put options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts by providing a four-step decision sequence to assess whether the economic characteristics of the embedded call and put options are clearly and closely related to the economic characteristics of their debt hosts. ASU 2016-06 allows for a modified retrospective approach for adoption. ASU 2016-06 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. Early adoption is permitted. ASU 2016-06 is not expected to have a material impact on the Corporation’s consolidated financial statements. Credit Losses - Topic 326 Accounting Standards Update No. 2016-13, “Financial Instruments - Credit Losses” (“ASU 2016-13”), was issued in June 2016. ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 provides for a modified retrospective transition, resulting in a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is effective, except for debt securities for which an other-than-temporary impairment has previously been recognized. For these debt securities, a prospective transition approach will be adopted in order to maintain the same amortized cost prior to and subsequent to the effective date of ASU 2016-13. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019. Early adoption is permitted, for annual periods and interim periods within those annual periods, beginning after December 15, 2018. The Corporation is currently evaluating the impact that ASU 2016-13 will have on its consolidated financial statements. Statement of Cash Flows - Topic 230 Accounting Standards Update No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”), was issued in August 2016. ASU 2016-15 provides classification guidance on certain cash receipts and cash payments, including, but not limited to, debt prepayment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of bank-owned life insurance policies and distributions received from equity method investees. The adoption of ASU 2016-15 requires a retrospective transition method applied to each period presented. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. The adoption of ASU 2016-15 is not expected to have a material impact on the Corporation’s consolidated financial statements. |
Cash and Due from Banks
Cash and Due from Banks | 9 Months Ended |
Sep. 30, 2016 | |
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 am ounted to $11.2 million at September 30, 2016 and $10.5 million at December 31, 2015 and were included in cash and due from banks in the Consolidated Balance Sheets. As of September 30, 2016 and December 31, 2015 , cash and due from banks included interest-bearing deposits in other banks of $77.0 million and $48.2 million , respectively. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2016 | |
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) September 30, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Securities Available for Sale: Obligations of U.S. government-sponsored enterprises $75,500 $49 ($65 ) $75,484 Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 434,430 8,564 (307 ) 442,687 Obligations of states and political subdivisions 18,239 157 — 18,396 Individual name issuer trust preferred debt securities 29,842 — (4,158 ) 25,684 Corporate bonds 1,956 49 — 2,005 Total securities available for sale $559,967 $8,819 ($4,530 ) $564,256 Held to Maturity: Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises $16,848 $644 $— $17,492 Total securities held to maturity $16,848 $644 $— $17,492 Total securities $576,815 $9,463 ($4,530 ) $581,748 (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 As of September 30, 2016 and December 31, 2015 , securities with a fair value of $559.0 million and $346.1 million , respectively, were pledged as collateral for Federal Home Loan Bank of Boston (“FHLBB”) borrowings, potential borrowings with the FRB, certain public deposits and for other purposes. See Note 7 for additional disclosure on 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. (Dollars in thousands) Available for Sale Held to Maturity September 30, 2016 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $70,876 $72,201 $4,019 $4,172 Due after one year to five years 187,480 190,915 8,835 9,173 Due after five years to ten years 185,358 187,402 3,394 3,524 Due after ten years 116,253 113,738 600 623 Total securities $559,967 $564,256 $16,848 $17,492 Included in the above table are debt securities with an amortized cost balance of $122.5 million and a fair value of $118.5 million at September 30, 2016 that are callable at the discretion of the issuers. Final maturities of the callable securities range from 5 months to 20 years, with call features ranging from 1 month to 5 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 September 30, 2016 # Fair Unrealized # Fair Value Unrealized Losses # Fair Value Unrealized Losses Obligations of U.S. government-sponsored enterprises 2 $29,935 ($65 ) — $— $— 2 $29,935 ($65 ) Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 8 136,398 (307 ) — — — 8 136,398 (307 ) Individual name issuer trust preferred debt securities — — — 10 25,684 (4,158 ) 10 25,684 (4,158 ) Total temporarily impaired securities 10 $166,333 ($372 ) 10 $25,684 ($4,158 ) 20 $192,017 ($4,530 ) (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 ) 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 write-downs. Unrealized losses on temporarily impaired securities as of September 30, 2016 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 September 30, 2016 were 10 trust preferred security holdings issued by 7 individual companies in 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 issuer trust preferred debt securities held in our portfolio continue to accrue and make payments as expected with no payment deferrals or defaults on the part of the issuers. As of September 30, 2016 , individual name issuer trust preferred debt securities with an amortized cost of $10.9 million and unrealized losses of $1.5 million were rated below investment grade by Standard & Poors, Inc. (“S&P”). Management reviewed the collectibility of these securities taking into consideration such factors as the financial condition of the issuers, reported regulatory capital ratios of the issuers, credit ratings, including ratings in effect as of the reporting period date as well as credit rating changes between the reporting period date and the filing date of this report, and other information. We noted no additional downgrades to below investment grade between September 30, 2016 and the filing date of this report. Based on this review, 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 September 30, 2016 . 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 September 30, 2016 . |
Loans
Loans | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Loans | Loans The following is a summary of loans: (Dollars in thousands) September 30, 2016 December 31, 2015 Amount % Amount % Commercial: Mortgages (1) $1,086,175 34 % $931,953 31 % Construction & development (2) 98,735 3 122,297 4 Commercial & industrial (3) 572,305 18 600,297 20 Total commercial 1,757,215 55 1,654,547 55 Residential real estate: Mortgages 1,052,829 33 984,437 33 Homeowner construction 27,058 1 29,118 1 Total residential real estate 1,079,887 34 1,013,555 34 Consumer: Home equity lines 265,238 8 255,565 8 Home equity loans 38,264 1 46,649 2 Other (4) 40,751 2 42,811 1 Total consumer 344,253 11 345,025 11 Total loans (5) $3,181,355 100 % $3,013,127 100 % (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 $2.8 million and $2.6 million , respectively, at September 30, 2016 and December 31, 2015 and net unamortized premiums on purchased loans of $641 thousand and $84 thousand , respectively, at September 30, 2016 and December 31, 2015 . At September 30, 2016 and December 31, 2015 , there were $1.5 billion and $1.3 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 7 for additional disclosure regarding borrowings. Nonaccrual Loans Loans, with the exception of certain well-secured loans that are in the process of collection, are placed on nonaccrual status and interest recognition is suspended when such loans are 90 days or more overdue with respect to principal and/or interest, or sooner if considered appropriate by management. Well-secured loans are permitted to remain on accrual status provided that full collection of principal and interest is assured and the loan is in the process of collection. Loans are also placed on nonaccrual status when, in the opinion of management, full collection of principal and interest is doubtful. Interest previously accrued but not collected on such loans is reversed against current period income. Subsequent interest payments received on nonaccrual loans are applied to the outstanding principal balance of the loan or recognized as interest income depending on management’s assessment of the ultimate 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) Sep 30, Dec 31, Commercial: Mortgages $10,357 $5,711 Construction & development — — Commercial & industrial 1,744 3,018 Residential real estate: Mortgages 10,140 10,666 Homeowner construction — — Consumer: Home equity lines 271 528 Home equity loans 1,322 1,124 Other 116 — Total nonaccrual loans $23,950 $21,047 Accruing loans 90 days or more past due $— $— As of September 30, 2016 and December 31, 2015 , loans secured by one- to four-family residential property amounting to $5.0 million and $2.6 million , respectively, were in process of foreclosure. Nonaccrual loans of $5.2 million and $7.4 million , respectively, were current as to the payment of principal and interest at September 30, 2016 and December 31, 2015 . There were no significant commitments to lend additional funds to borrowers whose loans were on nonaccrual status at September 30, 2016 . Past Due Loans Past due status is based on the contractual payment terms of the loan. The following tables present an age analysis of past due loans, segregated by class of loans: (Dollars in thousands) Days Past Due September 30, 2016 30-59 60-89 Over 90 Total Past Due Current Total Loans Commercial: Mortgages $— $2,497 $7,855 $10,352 $1,075,823 $1,086,175 Construction & development — — — — 98,735 98,735 Commercial & industrial — — 1,047 1,047 571,258 572,305 Residential real estate: Mortgages 2,737 860 4,694 8,291 1,044,538 1,052,829 Homeowner construction — — — — 27,058 27,058 Consumer: Home equity lines 110 — — 110 265,128 265,238 Home equity loans 412 166 731 1,309 36,955 38,264 Other 35 2 109 146 40,605 40,751 Total loans $3,294 $3,525 $14,436 $21,255 $3,160,100 $3,181,355 (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 Included in past due loans as of September 30, 2016 and December 31, 2015 , were nonaccrual loans of $18.8 million and $13.6 million , respectively. All loans 90 days or more past due at September 30, 2016 and December 31, 2015 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. The following is a summary of impaired loans: (Dollars in thousands) Recorded Investment (1) Unpaid Principal Related Allowance Sep 30, Dec 31, Sep 30, Dec 31, Sep 30, Dec 31, No Related Allowance Recorded: Commercial: Mortgages $3,980 $4,292 $4,903 $5,101 $— $— Construction & development — — — — — — Commercial & industrial 1,945 1,849 2,056 1,869 — — Residential real estate: Mortgages 13,029 8,441 13,200 8,826 — — Homeowner construction — — — — — — Consumer: Home equity lines 271 6 271 64 — — Home equity loans 1,323 530 1,344 539 — — Other 112 — 112 — — — Subtotal 20,660 15,118 21,886 16,399 — — With Related Allowance Recorded: Commercial: Mortgages $7,567 $10,873 $9,427 $10,855 $972 $1,633 Construction & development — — — — — — Commercial & industrial 460 2,024 511 2,248 15 771 Residential real estate: Mortgages 1,047 2,895 1,073 2,941 201 156 Homeowner construction — — — — — — Consumer: Home equity lines — 522 — 522 — 2 Home equity loans 79 679 79 783 1 21 Other 34 145 33 144 5 — Subtotal 9,187 17,138 11,123 17,493 1,194 2,583 Total impaired loans $29,847 $32,256 $33,009 $33,892 $1,194 $2,583 Total: Commercial $13,952 $19,038 $16,897 $20,073 $987 $2,404 Residential real estate 14,076 11,336 14,273 11,767 201 156 Consumer 1,819 1,882 1,839 2,052 6 23 Total impaired loans $29,847 $32,256 $33,009 $33,892 $1,194 $2,583 (1) The recorded investment in impaired loans consists of unpaid principal balance, net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs. For impaired accruing loans (troubled debt restructurings for which management has concluded that the collectibility of the loan is not in doubt), the recorded investment also includes accrued interest. The following tables present the average recorded investment balance of impaired loans and interest income recognized on impaired loans segregated by loan class. Prior to the third quarter of 2015, 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. In the third quarter of 2015, the Corporation redefined impaired loans to include nonaccrual loans and troubled debt restructured loans. The redefinition of impaired loans resulted in well-secured nonaccrual residential real estate mortgage loans and consumer loans being classified as impaired loans in the third quarter of 2015. See further discussion on the redefinition of impaired loans in Washington Trust’s Form 10-K for the fiscal year ended December 31, 2015 . (Dollars in thousands) Average Recorded Investment Interest Income Recognized Three months ended September 30, 2016 2015 2016 2015 Commercial: Mortgages $13,159 $14,583 $40 $82 Construction & development — — — — Commercial & industrial 2,342 3,376 21 29 Residential real estate: Mortgages 13,962 4,484 86 27 Homeowner construction — — — — Consumer: Home equity lines 297 157 2 1 Home equity loans 1,328 515 9 3 Other 145 354 3 2 Totals $31,233 $23,469 $161 $144 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Nine months ended September 30, 2016 2015 2016 2015 Commercial: Mortgages $13,856 $14,692 $220 $237 Construction & development — — — — Commercial & industrial 3,141 3,164 42 89 Residential real estate: Mortgages 11,985 3,735 253 67 Homeowner construction — — — — Consumer: Home equity lines 427 227 10 1 Home equity loans 1,240 224 33 4 Other 147 231 7 7 Totals $30,796 $22,273 $565 $405 Troubled Debt Restructurings Loans are considered restructured in a troubled debt restructuring when the Corporation has granted concessions to a borrower due to the borrower’s financial condition that it otherwise would not have considered. These concessions may include modifications of the terms of the debt such as deferral of payments, extension of maturity, reduction of principal balance, reduction of the stated interest rate other than normal market rate adjustments, or a combination of these concessions. Debt may be bifurcated with separate terms for each tranche of the restructured debt. Restructuring a loan in lieu of aggressively enforcing the collection of the loan may benefit the Corporation by increasing the ultimate probability of collection. Restructured loans are classified as accruing or non-accruing based on management’s assessment of the collectibility of the loan. Loans which are already on nonaccrual status at the time of the restructuring generally remain on nonaccrual status for approximately 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 at both September 30, 2016 and December 31, 2015 . These amounts included insignificant balances of accrued interest. The allowance for loan losses included specific reserves for these troubled debt restructurings of $1.1 million and $1.8 million , respectively, at September 30, 2016 and December 31, 2015 . As of September 30, 2016 , there were no significant commitments to lend additional funds to borrowers whose loans had been restructured. The following tables present loans modified as a troubled debt restructuring: (Dollars in thousands) Outstanding Recorded Investment (1) # of Loans Pre-Modifications Post-Modifications Three months ended September 30, 2016 2015 2016 2015 2016 2015 Commercial: Mortgages — 1 $— $1,190 $— $1,190 Construction & development — — — — — — Commercial & industrial 5 — 914 — 914 — Residential real estate: Mortgages — 2 — 526 — 526 Homeowner construction — — — — — — Consumer: Home equity lines — — — — — — Home equity loans — — — — — — Other — — — — — — Totals 5 3 $914 $1,716 $914 $1,716 (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. (Dollars in thousands) Outstanding Recorded Investment (1) # of Loans Pre-Modifications Post-Modifications Nine months ended September 30, 2016 2015 2016 2015 2016 2015 Commercial: Mortgages — 1 $— $1,190 $— $1,190 Construction & development — — — — — — Commercial & industrial 6 3 1,047 584 1,047 584 Residential real estate: Mortgages 1 3 3,550 619 3,550 619 Homeowner construction — — — — — — Consumer: Home equity lines — — — — — — Home equity loans — 1 — 70 — 70 Other — 1 — 35 — 35 Totals 7 9 $4,597 $2,498 $4,597 $2,498 (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 presents information on how loans were modified as a troubled debt restructuring: (Dollars in thousands) Three months Nine months Periods ended September 30, 2016 2015 2016 2015 Below-market interest rate concession $— $— $— $— Payment deferral — 526 — 1,145 Maturity / amortization concession 324 — 457 163 Interest only payments — — 3,550 — Combination (1) 590 1,190 590 1,190 Total $914 $1,716 $4,597 $2,498 (1) Loans included in this classification were modified with a combination of any two of the concessions listed in this table. In the three and nine months ended September 30, 2016 and 2015 , there were an insignificant amount of loans modified in a troubled debt restructuring within the previous twelve months for which there were payment defaults. Credit Quality Indicators Commercial The Corporation utilizes an internal rating system to assign a risk to each of its commercial loans. Loans are rated on a scale of 1 to 10. This scale can be assigned to three broad categories including “pass” for ratings 1 through 6, “special mention” for 7-rated loans, and “classified” for loans rated 8, 9 or 10. The loan rating system takes into consideration parameters including the borrower’s financial condition, the borrower’s performance with respect to loan terms, the adequacy of collateral, the adequacy of guarantees and other credit quality characteristics. The weighted average risk rating of the Corporation’s commercial loan portfolio was 4.70 at September 30, 2016 and 4.68 at December 31, 2015 . 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. A description of the commercial loan categories are as follows: Pass - Loans with acceptable credit quality, defined as ranging from superior or very strong to a status of lesser stature. Superior or very strong credit quality is characterized by a high degree of cash collateralization or strong balance sheet liquidity. Lesser stature loans have an acceptable level of credit quality but exhibit some weakness in various credit metrics such as collateral adequacy, cash flow, secondary sources of repayment, or performance inconsistency or may be in an industry or of a loan type known to have a higher degree of risk. Special Mention - Loans with potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Bank’s position as creditor at some future date. Special Mention assets are not adversely classified and do not expose the Bank to sufficient risk to warrant adverse classification. Examples of these conditions include but are not limited to outdated or poor quality financial data, strains on liquidity and leverage, losses or negative trends in operating results, marginal cash flow, weaknesses in occupancy rates or trends in the case of commercial real estate and frequent delinquencies. Classified - Loans identified as “substandard”, “doubtful” or “loss” based on criteria consistent with guidelines provided by banking regulators. A “substandard” loan has defined weaknesses which make payment default or principal exposure likely, but not yet certain. Such loans are apt to be dependent upon collateral liquidation, a secondary source of repayment or an event outside of the normal course of business. The loans are closely watched and are either already on nonaccrual status or may be placed on nonaccrual status when management determines there is uncertainty of collectibility. A “doubtful” loan is placed on non-accrual status and has a high probability of loss, but the extent of the loss is difficult to quantify due to dependency upon collateral having a value that is difficult to determine or upon some near-term event which lacks certainty. A loan in the “loss” category is considered generally uncollectible or the timing or amount of payments cannot be determined. “Loss” is not intended to imply that the loan has no recovery value but rather it is not practical or desirable to continue to carry the asset. The Corporation’s procedures call for loan ratings and classifications to be revised whenever information becomes available that indicates a change is warranted. The criticized loan portfolio, which consists of commercial loans that are risk rated special mention or worse, are reviewed by management on a quarterly basis, focusing on the current status and strategies to improve the credit. An annual loan review program is conducted by a third party to provide an independent evaluation of the creditworthiness of the commercial loan portfolio, the quality of the underwriting and credit risk management practices and the appropriateness of the risk rating classifications. This review is supplemented with selected targeted internal reviews of the commercial loan portfolio. The following table presents the commercial loan portfolio, segregated by category of credit quality indicator: (Dollars in thousands) Pass Special Mention Classified Sep 30, Dec 31, Sep 30, Dec 31, Sep 30, Dec 31, Commercial: Mortgages $1,074,473 $914,774 $1,099 $3,035 $10,603 $14,144 Construction & development 98,735 122,297 — — — — Commercial & industrial 548,154 577,036 15,465 12,012 8,686 11,249 Total commercial loans $1,721,362 $1,614,107 $16,564 $15,047 $19,289 $25,393 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. 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 ratio is determined via statistical modeling analyses. The indicated LTV levels are estimated based on such factors as the location, the original LTV ratio, 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. 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 Sep 30, Dec 31, Sep 30, Dec 31, Residential real estate: Accruing mortgages $1,042,689 $973,771 $— $— Nonaccrual mortgages 5,446 7,372 4,694 3,294 Homeowner construction 27,058 29,118 — — Total residential loans $1,075,193 $1,010,261 $4,694 $3,294 Consumer: Home equity lines $265,238 $255,047 $— $518 Home equity loans 37,533 46,427 731 222 Other 40,642 42,811 109 — Total consumer loans $343,413 $344,285 $840 $740 |
Allowance for Loan Losses
Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2016 | |
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 three months ended September 30, 2016 : (Dollars in thousands) Commercial Mortgages Construction C&I (1) Total Commercial Residential Consumer Total Beginning Balance $10,413 $904 $6,520 $17,837 $5,469 $2,520 $25,826 Charge-offs (1,940 ) — (3 ) (1,943 ) (52 ) (60 ) (2,055 ) Recoveries 4 — 46 50 5 23 78 Provision 1,981 78 (59 ) 2,000 (21 ) (179 ) 1,800 Ending Balance $10,458 $982 $6,504 $17,944 $5,401 $2,304 $25,649 (1) Commercial & industrial loans. The following table presents the activity in the allowance for loan losses for the nine months ended September 30, 2016 : (Dollars in thousands) Commercial Mortgages Construction C&I (1) Total Commercial Residential Consumer Total Beginning Balance $9,140 $1,758 $8,202 $19,100 $5,460 $2,509 $27,069 Charge-offs (3,271 ) — (757 ) (4,028 ) (192 ) (170 ) (4,390 ) Recoveries 21 — 134 155 9 56 220 Provision 4,568 (776 ) (1,075 ) 2,717 124 (91 ) 2,750 Ending Balance $10,458 $982 $6,504 $17,944 $5,401 $2,304 $25,649 (1) Commercial & industrial loans. The following table presents the activity in the allowance for loan losses for the three months ended September 30, 2015 : (Dollars in thousands) Commercial Mortgages Construction C&I (1) Total Commercial Residential Consumer Un-allocated Total Beginning Balance $8,529 $1,684 $7,010 $17,223 $5,405 $2,683 $2,276 $27,587 Charge-offs — — (378 ) (378 ) (34 ) (313 ) — (725 ) Recoveries 4 — 30 34 22 43 — 99 Provision (38 ) 5 691 658 150 (164 ) (444 ) 200 Ending Balance $8,495 $1,689 $7,353 $17,537 $5,543 $2,249 $1,832 $27,161 (1) Commercial & industrial loans. The following table presents the activity in the allowance for loan losses for the nine months ended September 30, 2015 : (Dollars in thousands) Commercial Mortgages Construction C&I (1) Total Commercial Residential Consumer Un-allocated Total Beginning Balance $8,202 $1,300 $7,987 $17,489 $5,430 $2,713 $2,391 $28,023 Charge-offs (400 ) — (429 ) (829 ) (88 ) (484 ) — (1,401 ) Recoveries 88 — 62 150 26 63 — 239 Provision 605 389 (267 ) 727 175 (43 ) (559 ) 300 Ending Balance $8,495 $1,689 $7,353 $17,537 $5,543 $2,249 $1,832 $27,161 (1) Commercial & industrial loans. The following table presents the Corporation’s loan portfolio and associated allowance for loan loss by portfolio segment and by impairment methodology: (Dollars in thousands) September 30, 2016 December 31, 2015 Loans Related Allowance Loans Related Allowance Loans Individually Evaluated for Impairment: Commercial: Mortgages $11,546 $972 $15,141 $1,633 Construction & development — — — — Commercial & industrial 2,403 15 3,871 771 Residential real estate 14,067 201 11,333 156 Consumer 1,818 6 1,881 23 Subtotal 29,834 1,194 32,226 2,583 Loans Collectively Evaluated for Impairment: Commercial: Mortgages $1,074,629 $9,486 $916,812 $7,507 Construction & development 98,735 982 122,297 1,758 Commercial & industrial 569,902 6,489 596,426 7,431 Residential real estate 1,065,820 5,200 1,002,222 5,304 Consumer 342,435 2,298 343,144 2,486 Subtotal 3,151,521 24,455 2,980,901 24,486 Total $3,181,355 $25,649 $3,013,127 $27,069 |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Federal Home Loan Bank Advances Advances payable to the FHLBB amounted to $671.6 million and $379.0 million , respectively, at September 30, 2016 and December 31, 2015 . The following table presents maturities and weighted average interest rates on FHLBB advances outstanding as of September 30, 2016 : (Dollars in thousands) Total Outstanding Weighted Average Rate October 1, 2016 to December 31, 2016 $217,685 0.72 % 2017 100,075 1.16 2018 78,134 1.35 2019 120,758 1.67 2020 38,983 2.21 2021 and thereafter 115,980 3.30 Balance at September 30, 2016 $671,615 1.56 % As of September 30, 2016 and December 31, 2015 , the Bank had access to a $40.0 million unused line of credit with the FHLBB and also had remaining available borrowing capacity of $611.4 million and $644.8 million , respectively. The Bank pledges certain qualified investment securities and loans as collateral to the FHLBB. |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital Requirements | Shareholders’ Equity Regulatory Capital Requirements Capital levels at both September 30, 2016 and 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 Provisions Amount Ratio Amount Ratio Amount Ratio September 30, 2016 Total Capital (to Risk-Weighted Assets): Corporation $382,766 12.31 % $248,761 8.00 % N/A N/A Bank 382,421 12.30 248,747 8.00 $310,934 10.00 % Tier 1 Capital (to Risk-Weighted Assets): Corporation 356,938 11.48 186,570 6.00 N/A N/A Bank 356,593 11.47 186,561 6.00 248,747 8.00 Common Equity Tier 1 Capital (to Risk-Weighted Assets): Corporation 334,939 10.77 139,928 4.50 N/A N/A Bank 356,593 11.47 139,920 4.50 202,107 6.50 Tier 1 Capital (to Average Assets): (1) Corporation 356,938 8.95 159,610 4.00 N/A N/A Bank 356,593 8.94 159,543 4.00 199,429 5.00 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): 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): (1) 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 (1) Leverage ratio. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
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 v alue 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 September 30, 2016 and December 31, 2015 , the Bancorp had two interest rate caps with a notional amount of $22.7 million that were designated as cash flow hedges to hedge the interest rate risk associated with our variable rate junior subordinated debentures. In the fourth quarter of 2015, the Bancorp entered into the interest rate cap contracts and 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 2020. Prior to December 31, 2015 , the Bancorp had two interest rate swap contracts designated as cash flow hedges to hedge the interest rate risk associated with the junior subordinated debentures noted above. During 2015 , both interest rate swaps contracts matured. The effective portion of the changes in fair value of derivatives designated as cash flow hedges is recorded in other comprehensive income and subsequently reclassified to earnings when gains or losses are realized. The ineffective portion of changes in fair value of the derivatives is recognized directly in earnings as interest expense. 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 allow them to convert floating-rate loan payments to fixed-rate loan payments. When we enter into an interest rate swap contract with a commercial loan borrower, we simultaneously enter into a “mirror” swap contract with a third party. The third party exchanges the client’s fixed-rate loan payments for floating-rate loan payments. We retain the risk that is associated with the potential failure of counterparties and the risk inherent in originating loans. As of September 30, 2016 and December 31, 2015 , Washington Trust had interest rate swap contracts with commercial loan borrowers with notional amounts of $446.3 million and $ 302.1 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 The Corporation has entered into risk participation agreements with other banks participating in commercial loan arrangements. Participating banks guarantee the performance on borrower-related interest rate swap contracts. 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. At September 30, 2016 and December 31, 2015 , the notional amounts of risk participation-out agreements were $38.5 million and $25.3 million , respectively. The notional amounts of risk participation-in agreements at both September 30, 2016 and December 31, 2015 were $21.5 million . Loan Commitments Interest rate lock commitments are extended to borrowers and relate to the origination of residential real estate mortgage loans held for sale. To mitigate the interest rate risk inherent in these rate locks, as well as closed residential real estate mortgage loans held for sale, forward commitments are established to sell individual residential real estate mortgage loans. Both interest rate lock commitments and commitments to sell residential real estate mortgage loans are derivative financial instruments, but do not meet criteria for hedge accounting and, as such the changes in fair value of these commitments are reflected in earnings. The Corporation has elected to carry certain closed residential real estate mortgage loans held for sale at fair value, as changes in fair value in these loans held for sale generally offset changes in interest rate lock and forward sale commitments. The following table presents the fair values of derivative instruments in the Corporation’s Consolidated Balance Sheets: (Dollars in thousands) Asset Derivatives Liability Derivatives Fair Value Fair Value Balance Sheet Location Sep 30, 2016 Dec 31, 2015 Balance Sheet Location Sep 30, 2016 Dec 31, 2015 Derivatives Designated as Cash Flow Hedging Instruments: Interest rate risk management contracts: Interest rate caps Other assets $38 $187 Other liabilities $— $— Derivatives not Designated as Hedging Instruments: Forward loan commitments: Interest rate lock commitments Other assets 3,629 1,220 Other liabilities 22 — Commitments to sell mortgage loans Other assets 34 — Other liabilities 4,891 2,012 Loan related derivative contracts: Interest rate swaps with customers Other assets 21,143 8,027 Other liabilities — — Mirror swaps with counterparties Other assets — — Other liabilities 21,761 8,266 Risk participation agreements Other assets 3 56 Other liabilities 126 69 Total $24,847 $9,490 $26,800 $10,347 The following tables present the effect of derivative instruments in the Corporation’s Consolidated Statements of Income and Changes in Shareholders’ Equity: (Dollars in thousands) Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) Location of Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) Gain (Loss) Recognized in Income (Ineffective Portion) Three months Nine months Three months Nine months Periods ended September 30, 2016 2015 2016 2015 2016 2015 2016 2015 Derivatives Designated as Cash Flow Hedging Instruments: Interest rate risk management contracts: Interest rate swap contracts $— $81 $— $255 Interest Expense $— $— $— $— Interest rate caps (4 ) — (94 ) — Interest Expense — — — — Total ($4 ) $81 ($94 ) $255 $— $— $— $— (Dollars in thousands) Amount of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Three months Nine months Periods ended September 30, Statement of Income Location 2016 2015 2016 2015 Derivatives not Designated as Hedging Instruments: Forward loan commitments: Interest rate lock commitments Mortgage banking revenues $641 $864 $2,387 $1,002 Commitments to sell mortgage loans Mortgage banking revenues (665 ) (1,470 ) (2,845 ) (999 ) Customer related derivative contracts: Interest rate swaps with customers Loan related derivative income 32 6,448 17,064 8,717 Mirror swaps with counterparties Loan related derivative income 1,250 (6,081 ) (14,527 ) (6,799 ) Risk participation agreements Loan related derivative income (104 ) (40 ) (206 ) (229 ) Total $1,154 ($279 ) $1,873 $1,692 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Corporation uses fair value measurements to record fair value adjustments on certain assets and liabilities and to determine fair value disclosures. As of September 30, 2016 and December 31, 2015 , 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 has elected the fair value option for certain residential real estate mortgage loans held for sale to better match changes in fair value of the loans with changes in the fair value of the derivative loan sale contracts used to economically hedge them. The aggregate principal amount of the residential real estate mortgage loans held for sale that were recorded at fair value was $43.8 million and $33.2 million , respectively, at September 30, 2016 and December 31, 2015 . The aggregate fair value of these loans as of the same dates was $45.2 million and $34.0 million , respectively. As of September 30, 2016 and December 31, 2015 , the aggregate fair value of residential real estate mortgage loans held for sale exceeded the aggregate principal amount by $1.3 million and $731 thousand , respectively. There were no residential real estate mortgage loans held for sale 90 days or more past due as of September 30, 2016 and December 31, 2015 . 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) Three months Nine months Periods ended September 30, 2016 2015 2016 2015 Mortgage loans held for sale $117 $490 $612 ($79 ) Interest rate lock commitments 641 864 2,387 1,002 Commitments to sell mortgage loans (665 ) (1,470 ) (2,845 ) (999 ) Total changes in fair value $93 ($116 ) $154 ($76 ) 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 September 30, 2016 and December 31, 2015 . Level 2 securities include debt securities with quoted prices, which are traded less frequently than exchange-traded instruments. The fair value of these securities 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 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 September 30, 2016 and December 31, 2015 . 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 The fair value of collateral dependent loans that are deemed to be impaired is determined 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. Loan Servicing Rights Loans sold with the retention of servicing result in the recognition of loan servicing rights. Loan servicing rights are included in other assets in the Consolidated Balance Sheets and are amortized as an offset to mortgage banking revenues over the estimated period of servicing. Loan servicing rights are evaluated quarterly for impairment based on their fair value. Impairment exists if the carrying value exceeds the estimated fair value. Impairment is measured on an aggregated basis by stratifying the loan servicing rights based on homogeneous characteristics such as note rate and loan type. The fair value is estimated using an independent valuation model that estimates the present value of expected cash flows, incorporating assumptions for discount rates and prepayment rates. Any impairment is recognized through a valuation allowance and as a reduction to mortgage banking revenues. Loan servicing rights 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. 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. Although the Corporation has determined that the majority of the inputs used to value its interest rate swap and cap contracts fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with interest rate contracts and risk participation agreements utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Corporation and its counterparties. However, as of September 30, 2016 and December 31, 2015 , the Corporation has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Corporation has classified its derivative valuations in their entirety as Level 2. 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 was recognized upon the completion of the Halsey Associates, Inc. (“Halsey”) acquisition on August 1, 2015 and 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 fair value measurement 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 the discounted cash flow calculations applied to the estimates earn-outs to be paid. The discount rates used ranged from 3% to 4% . The contingent consideration liability is remeasured to fair value at each reporting period taking into consideration changes in those unobservable inputs. Changes in the fair value of the contingent consideration liability are included in noninterest expenses in the Consolidated Statements of Income. 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 (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2016 Assets: Securities available for sale: Obligations of U.S. government-sponsored enterprises $75,484 $— $75,484 $— Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 442,687 — 442,687 — Obligations of states and political subdivisions 18,396 — 18,396 — Individual name issuer trust preferred debt securities 25,684 — 25,684 — Corporate bonds 2,005 — 2,005 — Mortgage loans held for sale 45,162 — 45,162 — Derivative assets (1) 24,847 — 24,847 — Total assets at fair value on a recurring basis $634,265 $— $634,265 $— Liabilities: Derivative liabilities (2) $26,800 $— $26,800 $— Contingent consideration liability (3) 2,047 — — 2,047 Total liabilities at fair value on a recurring basis $28,847 $— $26,800 $2,047 (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 Significant Other Observable Inputs Significant Unobservable Inputs 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. It is the Corporation’s policy to review and reflect transfers between Levels as of the financial statement reporting date. During the nine months ended September 30, 2016 and 2015 , there were no transfers in and/or out of Level 1, 2 or 3. The following table presents the change in the contingent consideration liability, a Level 3 liability measured at fair value on a recurring basis, during the periods indicated: (Dollars in thousands) Three months Nine months Periods ended September 30, 2016 2015 2016 2015 Balance at beginning of period $2,986 $— $2,945 $— Initial recognition — 2,904 — 2,904 Change in fair value (939 ) 16 (898 ) 16 Payments — — — — Balance at end of period $2,047 $2,920 $2,047 $2,920 Items Recorded at Fair Value on a Nonrecurring Basis The following table presents the carrying value of assets held at September 30, 2016 , which were written down to fair value during the nine months ended September 30, 2016 : (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Collateral dependent impaired loans $5,726 $— $— $5,726 Loan servicing rights 3,314 — — 3,314 Property acquired through foreclosure or repossession 575 — — 575 Total assets at fair value on a nonrecurring basis $9,615 $— $— $9,615 The allowance for loan losses on collateral dependent impaired loans amounted to $1.0 million at September 30, 2016 . 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 collateral dependent impaired loans amounted to $2.4 million at December 31, 2015 . 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) September 30, 2016 Collateral dependent impaired loans $5,726 Appraisals of collateral Discount for costs to sell 0% - 20% (10%) Appraisal adjustments (1) 0% - 15% (14%) Loan servicing rights $3,314 Discounted Cash Flow Discount rates 10% - 14% (11%) Prepayment rates 13% - 24% (16%) Property acquired through foreclosure or repossession $575 Appraisals of collateral Discount for costs to sell 10% Appraisal adjustments (1) 6% - 15% (13%) (1) Management may adjust appraisal values to reflect market value declines or other discounts resulting from its knowledge of the property. (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% (1) Management may adjust appraisal values to reflect market value declines or other discounts resulting from its knowledge of the property. Valuation of Other Financial Instruments The methodologies for estimating the fair value of financial instruments that are measured at fair value on a recurring or nonrecurring basis are discussed above. The methodologies for other financial instruments are discussed below. Loans Fair values are estimated for categories of loans with similar financial characteristics. Loans are segregated by type and are then further segmented into fixed-rate and adjustable-rate interest terms to determine their fair value. The fair value of fixed-rate commercial and consumer loans is calculated by discounting scheduled cash flows through the estimated maturity of the loan using interest rates offered at the measurement date that reflect the credit and interest rate risk inherent in the loan. The estimate of maturity is based on the Corporation’s historical repayment experience. For residential mortgages, fair value is estimated by using market prices for sales of similar loans on the secondary market. The fair value of floating rate commercial and consumer loans approximates carrying value. Fair value for impaired loans is estimated using a discounted cash flow method based upon the loan’s contractual effective interest rate, or at the loan’s observable market price, or if the loan is collateral dependent, at the fair value of the collateral. Loans are classified within Level 3 of the fair value hierarchy. Time Deposits The discounted values of cash flows using the rates currently offered for deposits of similar remaining maturities were used to estimate the fair value of time deposits. Time deposits are classified within Level 2 of the fair value hierarchy. Federal Home Loan Bank Advances Rates currently available to the Corporation for advances with similar terms and remaining maturities are used to estimate fair value of existing advances. FHLBB advances are categorized as Level 2. Junior Subordinated Debentures The fair value of the junior subordinated debentures is estimated using rates currently available to the Corporation for debentures with similar terms and maturities. Junior subordinated debentures are categorized as Level 2. The following tables present the carrying amount, estimated fair value and placement in the fair value hierarchy of the Corporation’s financial instruments. The tables exclude financial instruments for which the carrying value approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, FHLBB stock, accrued interest receivable and bank-owned life insurance. Financial liabilities for which the fair value approximates carrying value include non-maturity deposits and accrued interest payable. (Dollars in thousands) September 30, 2016 Carrying Amount Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Financial Assets: Securities held to maturity $16,848 $17,492 $— $17,492 $— Loans, net of allowance for loan losses 3,155,706 3,190,240 — — 3,190,240 Financial Liabilities: Time deposits $913,649 $916,994 $— $916,994 $— FHLBB advances 671,615 685,238 — 685,238 — Junior subordinated debentures 22,681 16,732 — 16,732 — (Dollars in thousands) December 31, 2015 Carrying Amount Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs 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 — |
Defined Benefit Pension Plans
Defined Benefit Pension Plans | 9 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Defined Benefit Pension Plans | Defined Benefit Pension Plans The Corporation maintains a tax-qualified defined benefit pension plan for the benefit of certain eligible employees who were hired prior to October 1, 2007. The Corporation also has non-qualified retirement plans to provide supplemental retirement benefits to certain employees, as defined in the plans. The 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. 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. Prior to 2016, a single weighted-average discount rate was used to calculate interest and service cost components of net periodic benefit cost. For 2016, Washington Trust utilizes a "spot rate approach" in the calculation of interest and service cost. The spot rate approach applies separate discount rates for each projected benefit payment in the calculation of interest and service cost. This approach provides a more precise measurement of interest and service cost by improving the correlation between projected benefit cash flows and their corresponding spot rates. This change was made in conjunction with the annual evaluation of assumptions and did not affect the measurement of the Corporation’s defined benefit obligations at December 31, 2015 . It is considered a change in accounting estimate and, accordingly, was accounted for prospectively starting in 2016. The composition of net periodic benefit cost was as follows: (Dollars in thousands) Qualified Pension Plan Non-Qualified Retirement Plans Three months Nine months Three months Nine months Periods ended September 30, 2016 2015 2016 2015 2016 2015 2016 2015 Net Periodic Benefit Cost: Service cost $537 $615 $1,611 $1,844 $30 $20 $91 $59 Interest cost 644 731 1,932 2,195 108 122 324 367 Expected return on plan assets (1,158 ) (1,129 ) (3,475 ) (3,386 ) — — — — Amortization of prior service (credit) cost (6 ) (6 ) (17 ) (17 ) — — — — Recognized net actuarial loss 207 313 621 937 62 61 185 183 Net periodic benefit cost $224 $524 $672 $1,573 $200 $203 $600 $609 The following table presents the measurement date and weighted-average assumptions used to determine net periodic benefit cost: Qualified Pension Plan Non-Qualified Retirement Plans Periods ended September 30, 2016 2015 2016 2015 Measurement date Dec 31, 2015 Dec 31, 2014 Dec 31, 2015 Dec 31, 2014 Discount rate N/A 4.125% N/A 3.90% Equivalent single discount rate for benefit obligations 4.48% N/A 4.19% N/A Equivalent single discount rate for service cost 4.63 N/A 4.59 N/A Equivalent single discount rate for interest cost 3.88 N/A 3.44 N/A Expected long-term return on plan assets 6.75 7.25 N/A N/A Rate of compensation increase 3.75 3.75 3.75 3.75 |
Share-Based Compensation Arrang
Share-Based Compensation Arrangements | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Arrangements | Share-Based Compensation Arrangements During the nine months ended September 30, 2016 , the Corporation granted equity awards, which included performance share awards and nonvested share units. The performance share awards were granted to certain executive officers providing the opportunity to earn shares of common stock of the Corporation. The performance share awards were valued at fair market value as of January 20, 2016 (the award date), or $36.11 , and will be earned over a 3 -year performance period. The number of shares earned will range from zero to 200% of the target number of shares dependent upon the Corporation’s core return on equity and core earnings per share growth ranking compared to an industry peer group. The current assumption based on the most recent peer group information available results in shares earned at 140% of the target, or 47,533 shares. The Corporation granted 8,400 nonvested share units to non-employee directors with 3 -year cliff vesting. The nonvested share units were valued at fair market value as of May 10, 2016 (the award date), or $36.10 . |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2016 | |
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 activities; deposit generation; 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, 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) Commercial Banking Wealth Management Services Corporate Consolidated Total Three months ended September 30, 2016 2015 2016 2015 2016 2015 2016 2015 Net interest income (expense) $22,860 $21,278 ($11 ) ($15 ) $4,530 $4,734 $27,379 $25,997 Provision for loan losses 1,800 200 — — — — 1,800 200 Net interest income (expense) after provision for loan losses 21,060 21,078 (11 ) (15 ) 4,530 4,734 25,579 25,797 Noninterest income 7,101 4,498 9,623 8,902 537 513 17,261 13,913 Noninterest expenses: Depreciation and amortization expense 709 626 501 404 58 50 1,268 1,080 Other noninterest expenses (1) 14,759 13,805 5,584 6,820 3,039 2,833 23,382 23,458 Total noninterest expenses 15,468 14,431 6,085 7,224 3,097 2,883 24,650 24,538 Income before income taxes 12,693 11,145 3,527 1,663 1,970 2,364 18,190 15,172 Income tax expense 4,392 3,747 1,261 688 210 529 5,863 4,964 Net income $8,301 $7,398 $2,266 $975 $1,760 $1,835 $12,327 $10,208 Total assets at period end $3,617,967 $3,074,611 $53,236 $62,461 $532,831 $537,764 $4,204,034 $3,674,836 Expenditures for long-lived assets 424 1,006 280 51 58 61 762 1,118 (1) Other noninterest expenses for the Wealth Management Services segment includes a $939 thousand benefit resulting from the reduction of a contingent consideration liability in the three months ended September 30, 2016 and $504 thousand of acquisition related expenses in the three months ended September 30, 2015 . (Dollars in thousands) Commercial Banking Wealth Management Services Corporate Consolidated Total Nine months ended September 30, 2016 2015 2016 2015 2016 2015 2016 2015 Net interest income (expense) $67,414 $63,115 ($46 ) ($38 ) $14,522 $14,650 $81,890 $77,727 Provision for loan losses 2,750 300 — — — — 2,750 300 Net interest income (expense) after provision for loan losses 64,664 62,815 (46 ) (38 ) 14,522 14,650 79,140 77,427 Noninterest income 17,331 15,164 28,278 26,249 2,200 1,781 47,809 43,194 Noninterest expenses: Depreciation and amortization expense 2,093 1,936 1,440 1,009 170 161 3,703 3,106 Other noninterest expenses (1) 43,788 41,259 19,084 19,200 9,555 8,803 72,427 69,262 Total noninterest expenses 45,881 43,195 20,524 20,209 9,725 8,964 76,130 72,368 Income before income taxes 36,114 34,784 7,708 6,002 6,997 7,467 50,819 48,253 Income tax expense 12,336 10,878 2,788 2,682 1,376 1,972 16,500 15,532 Net income $23,778 $23,906 $4,920 $3,320 $5,621 $5,495 $34,319 $32,721 Total assets at period end $3,617,967 $3,074,611 $53,236 $62,461 $532,831 $537,764 $4,204,034 $3,674,836 Expenditures for long-lived assets 1,779 2,774 468 252 361 194 2,608 3,220 (1) Other noninterest expenses for the Wealth Management Services segment includes a $898 thousand benefit resulting from the reduction of a contingent consideration liability in the nine months ended September 30, 2016 and $937 thousand of acquisition related expenses in the nine months ended September 30, 2015 . |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The following tables present the activity in other comprehensive income (loss): Three months ended September 30, 2016 2015 (Dollars in thousands) Pre-tax Amounts Income Taxes Net of Tax Pre-tax Amounts Income Taxes Net of Tax Net change in fair value of securities available for sale ($144 ) ($53 ) ($91 ) $543 $199 $344 Cash flow hedges: Change in fair value of cash flow hedges (15 ) (11 ) (4 ) (15 ) (14 ) (1 ) Net cash flow hedge losses reclassified into earnings (1) — — — 132 50 82 Net change in fair value of cash flow hedges (15 ) (11 ) (4 ) 117 36 81 Defined benefit plan obligation adjustment (2) 263 97 166 367 134 233 Total other comprehensive income (loss) $104 $33 $71 $1,027 $369 $658 (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. Nine months ended September 30, 2016 2015 (Dollars in thousands) Pre-tax Amounts Income Taxes Net of Tax Pre-tax Amounts Income Taxes Net of Tax Net change in fair value of securities available for sale $2,621 $970 $1,651 ($1,018 ) ($325 ) ($693 ) Cash flow hedges: Change in fair value of cash flow hedges (129 ) (35 ) (94 ) (21 ) (11 ) (10 ) Net cash flow hedge losses reclassified into earnings (1) — — — 418 153 265 Net change in fair value of cash flow hedges (129 ) (35 ) (94 ) 397 142 255 Defined benefit plan obligation adjustment (2) 789 292 497 1,102 280 822 Total other comprehensive income (loss) $3,281 $1,227 $2,054 $481 $97 $384 (1) Included in interest expense on junior subordinated debentures in the Consolidated Statements of Income. (2) Included in salaries and employee benefits expense in the Consolidated Statements of Income. The following tables present the changes in accumulated other comprehensive income (loss) by component, net of tax: (Dollars in thousands) Net Unrealized Gains on Available For Sale Securities Net Unrealized Losses on Cash Flow Hedges Pension Benefit Adjustment Total Balance at December 31, 2015 $1,051 ($43 ) ($10,707 ) ($9,699 ) Other comprehensive income (loss) before reclassifications 1,651 (94 ) — 1,557 Amounts reclassified from accumulated other comprehensive income — — 497 497 Net other comprehensive income (loss) 1,651 (94 ) 497 2,054 Balance at September 30, 2016 $2,702 ($137 ) ($10,210 ) ($7,645 ) (Dollars in thousands) Net Unrealized Gains on Available For Sale Securities 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 (693 ) (10 ) — (703 ) Amounts reclassified from accumulated other comprehensive income — 265 822 1,087 Net other comprehensive (loss) income (693 ) 255 822 384 Balance at September 30, 2015 $3,529 ($32 ) ($11,922 ) ($8,425 ) |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2016 | |
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) Three Months Nine months Periods ended September 30, 2016 2015 2016 2015 Earnings per common share - basic: Net income $12,327 $10,208 $34,319 $32,721 Less dividends and undistributed earnings allocated to participating securities (25 ) (27 ) (72 ) (100 ) Net income applicable to common shareholders $12,302 $10,181 $34,247 $32,621 Weighted average common shares 17,090 16,939 17,060 16,837 Earnings per common share - basic $0.72 $0.60 $2.01 $1.94 Earnings per common share - diluted: Net income $12,327 $10,208 $34,319 $32,721 Less dividends and undistributed earnings allocated to participating securities (25 ) (28 ) (72 ) (100 ) Net income applicable to common shareholders $12,302 $10,180 $34,247 $32,621 Weighted average common shares 17,090 16,939 17,060 16,837 Dilutive effect of common stock equivalents 113 163 138 190 Weighted average diluted common shares 17,203 17,102 17,198 17,027 Earnings per common share - diluted $0.72 $0.60 $1.99 $1.92 Weighted average common stock equivalents, not included in common stock equivalents above because they were anti-dilutive, totaled 46,800 and 28,342 , respectively, for the three months ended September 30, 2016 and 2015 . These amounts were 48,718 and 25,788 , respectively for the nine months ended September 30, 2016 and 2015 . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Financial Instruments with Off-Balance Sheet Risk The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers and to manage the Corporation’s exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit, standby letters of credit, interest rate swap agreements and interest rate lock commitments and commitments to sell residential real estate mortgage loans. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Corporation’s Consolidated Balance Sheets. The contract or notional amounts of these instruments reflect the extent of involvement the Corporation has in particular classes of financial instruments. The Corporation’s credit policies with respect to interest rate swap agreements with commercial borrowers, commitments to extend credit and financial guarantees are similar to those used for loans. The interest rate swaps with other counterparties are generally subject to bilateral collateralization terms. The following table presents the contractual and notional amounts of financial instruments with off-balance sheet risk: (Dollars in thousands) Sep 30, Dec 31, Financial instruments whose contract amounts represent credit risk: Commitments to extend credit: Commercial loans $374,689 $360,795 Home equity lines 227,656 219,427 Other loans 50,670 44,164 Standby letters of credit 5,648 5,629 Financial instruments whose notional amounts exceed the amount of credit risk: Forward loan commitments: Interest rate lock commitments 112,083 49,712 Commitments to sell mortgage loans 155,901 87,498 Loan related derivative contracts: Interest rate swaps with customers 446,268 302,142 Mirror swaps with counterparties 446,268 302,142 Risk participation-in agreements 21,474 21,474 See Note 9 for additional disclosure pertaining to derivative financial instruments. Commitments to Extend Credit Commitments to extend credit are agreements to lend to a customer as long as there are no violations of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, total commitment amounts do not necessarily represent future cash requirements. Each borrower’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained is based on management’s credit evaluation of the borrower. Standby Letters of Credit Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. These standby letters of credit are primarily issued to support the financing needs of the Bank’s commercial customers. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan facilities to customers. The collateral supporting those commitments is essentially the same as for other commitments. Most standby letters of credit extend for 1 year. As of both September 30, 2016 and December 31, 2015 , the maximum potential amount of undiscounted future payments, not reduced by amounts that may be recovered, totaled $5.6 million . At September 30, 2016 and December 31, 2015 , there were no liabilities to beneficiaries resulting from standby letters of credit. Fee income on standby letters of credit was insignificant for the three and nine months ended September 30, 2016 and 2015 . 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 September 30, 2016 , the Corporation was committed to rent premises used in banking operations under non-cancellable operating leases. Rental expense under the operating leases amounted to $1.0 million and $3.0 million , respectively, for the three and nine months ended September 30, 2016 , compared to $875 thousand and $2.5 million , respectively, for the same periods in 2015 . The following table presents the minimum annual lease payments under the terms of these leases, exclusive of renewal provisions: (Dollars in thousands) October 1, 2016 to December 31, 2016 $880 2017 3,478 2018 3,200 2019 2,923 2020 2,262 2021 and thereafter 28,167 Total minimum lease payments $40,910 Lease expiration dates range from 1 month to 24 years, with renewal options on certain leases of 12 months to 25 years. |
General Information (Policies)
General Information (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | The consolidated financial statements include the accounts of the Bancorp and its subsidiaries (collectively, the “Corporation” or “Washington Trust”). All significant intercompany transactions have been eliminated. |
Basis of Accounting | 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. |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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) September 30, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Securities Available for Sale: Obligations of U.S. government-sponsored enterprises $75,500 $49 ($65 ) $75,484 Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 434,430 8,564 (307 ) 442,687 Obligations of states and political subdivisions 18,239 157 — 18,396 Individual name issuer trust preferred debt securities 29,842 — (4,158 ) 25,684 Corporate bonds 1,956 49 — 2,005 Total securities available for sale $559,967 $8,819 ($4,530 ) $564,256 Held to Maturity: Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises $16,848 $644 $— $17,492 Total securities held to maturity $16,848 $644 $— $17,492 Total securities $576,815 $9,463 ($4,530 ) $581,748 (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 |
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. (Dollars in thousands) Available for Sale Held to Maturity September 30, 2016 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $70,876 $72,201 $4,019 $4,172 Due after one year to five years 187,480 190,915 8,835 9,173 Due after five years to ten years 185,358 187,402 3,394 3,524 Due after ten years 116,253 113,738 600 623 Total securities $559,967 $564,256 $16,848 $17,492 |
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 September 30, 2016 # Fair Unrealized # Fair Value Unrealized Losses # Fair Value Unrealized Losses Obligations of U.S. government-sponsored enterprises 2 $29,935 ($65 ) — $— $— 2 $29,935 ($65 ) Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 8 136,398 (307 ) — — — 8 136,398 (307 ) Individual name issuer trust preferred debt securities — — — 10 25,684 (4,158 ) 10 25,684 (4,158 ) Total temporarily impaired securities 10 $166,333 ($372 ) 10 $25,684 ($4,158 ) 20 $192,017 ($4,530 ) (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 ) |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Summary of Loans | The following is a summary of loans: (Dollars in thousands) September 30, 2016 December 31, 2015 Amount % Amount % Commercial: Mortgages (1) $1,086,175 34 % $931,953 31 % Construction & development (2) 98,735 3 122,297 4 Commercial & industrial (3) 572,305 18 600,297 20 Total commercial 1,757,215 55 1,654,547 55 Residential real estate: Mortgages 1,052,829 33 984,437 33 Homeowner construction 27,058 1 29,118 1 Total residential real estate 1,079,887 34 1,013,555 34 Consumer: Home equity lines 265,238 8 255,565 8 Home equity loans 38,264 1 46,649 2 Other (4) 40,751 2 42,811 1 Total consumer 344,253 11 345,025 11 Total loans (5) $3,181,355 100 % $3,013,127 100 % (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 $2.8 million and $2.6 million , respectively, at September 30, 2016 and December 31, 2015 and net unamortized premiums on purchased loans of $641 thousand and $84 thousand , respectively, at September 30, 2016 and December 31, 2015 . |
Nonaccrual Loans | The following is a summary of nonaccrual loans, segregated by class of loans: (Dollars in thousands) Sep 30, Dec 31, Commercial: Mortgages $10,357 $5,711 Construction & development — — Commercial & industrial 1,744 3,018 Residential real estate: Mortgages 10,140 10,666 Homeowner construction — — Consumer: Home equity lines 271 528 Home equity loans 1,322 1,124 Other 116 — Total nonaccrual loans $23,950 $21,047 Accruing loans 90 days or more past due $— $— |
Past Due Loans | Past due status is based on the contractual payment terms of the loan. The following tables present an age analysis of past due loans, segregated by class of loans: (Dollars in thousands) Days Past Due September 30, 2016 30-59 60-89 Over 90 Total Past Due Current Total Loans Commercial: Mortgages $— $2,497 $7,855 $10,352 $1,075,823 $1,086,175 Construction & development — — — — 98,735 98,735 Commercial & industrial — — 1,047 1,047 571,258 572,305 Residential real estate: Mortgages 2,737 860 4,694 8,291 1,044,538 1,052,829 Homeowner construction — — — — 27,058 27,058 Consumer: Home equity lines 110 — — 110 265,128 265,238 Home equity loans 412 166 731 1,309 36,955 38,264 Other 35 2 109 146 40,605 40,751 Total loans $3,294 $3,525 $14,436 $21,255 $3,160,100 $3,181,355 (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 |
Impaired Loans | The following is a summary of impaired loans: (Dollars in thousands) Recorded Investment (1) Unpaid Principal Related Allowance Sep 30, Dec 31, Sep 30, Dec 31, Sep 30, Dec 31, No Related Allowance Recorded: Commercial: Mortgages $3,980 $4,292 $4,903 $5,101 $— $— Construction & development — — — — — — Commercial & industrial 1,945 1,849 2,056 1,869 — — Residential real estate: Mortgages 13,029 8,441 13,200 8,826 — — Homeowner construction — — — — — — Consumer: Home equity lines 271 6 271 64 — — Home equity loans 1,323 530 1,344 539 — — Other 112 — 112 — — — Subtotal 20,660 15,118 21,886 16,399 — — With Related Allowance Recorded: Commercial: Mortgages $7,567 $10,873 $9,427 $10,855 $972 $1,633 Construction & development — — — — — — Commercial & industrial 460 2,024 511 2,248 15 771 Residential real estate: Mortgages 1,047 2,895 1,073 2,941 201 156 Homeowner construction — — — — — — Consumer: Home equity lines — 522 — 522 — 2 Home equity loans 79 679 79 783 1 21 Other 34 145 33 144 5 — Subtotal 9,187 17,138 11,123 17,493 1,194 2,583 Total impaired loans $29,847 $32,256 $33,009 $33,892 $1,194 $2,583 Total: Commercial $13,952 $19,038 $16,897 $20,073 $987 $2,404 Residential real estate 14,076 11,336 14,273 11,767 201 156 Consumer 1,819 1,882 1,839 2,052 6 23 Total impaired loans $29,847 $32,256 $33,009 $33,892 $1,194 $2,583 (1) The recorded investment in impaired loans consists of unpaid principal balance, net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs. For impaired accruing loans (troubled debt restructurings for which management has concluded that the collectibility of the loan is not in doubt), the recorded investment also includes accrued interest. The following tables present the average recorded investment balance of impaired loans and interest income recognized on impaired loans segregated by loan class. Prior to the third quarter of 2015, 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. In the third quarter of 2015, the Corporation redefined impaired loans to include nonaccrual loans and troubled debt restructured loans. The redefinition of impaired loans resulted in well-secured nonaccrual residential real estate mortgage loans and consumer loans being classified as impaired loans in the third quarter of 2015. See further discussion on the redefinition of impaired loans in Washington Trust’s Form 10-K for the fiscal year ended December 31, 2015 . (Dollars in thousands) Average Recorded Investment Interest Income Recognized Three months ended September 30, 2016 2015 2016 2015 Commercial: Mortgages $13,159 $14,583 $40 $82 Construction & development — — — — Commercial & industrial 2,342 3,376 21 29 Residential real estate: Mortgages 13,962 4,484 86 27 Homeowner construction — — — — Consumer: Home equity lines 297 157 2 1 Home equity loans 1,328 515 9 3 Other 145 354 3 2 Totals $31,233 $23,469 $161 $144 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Nine months ended September 30, 2016 2015 2016 2015 Commercial: Mortgages $13,856 $14,692 $220 $237 Construction & development — — — — Commercial & industrial 3,141 3,164 42 89 Residential real estate: Mortgages 11,985 3,735 253 67 Homeowner construction — — — — Consumer: Home equity lines 427 227 10 1 Home equity loans 1,240 224 33 4 Other 147 231 7 7 Totals $30,796 $22,273 $565 $405 |
Loans Modified as Troubled Debt Restructurings | The following tables present loans modified as a troubled debt restructuring: (Dollars in thousands) Outstanding Recorded Investment (1) # of Loans Pre-Modifications Post-Modifications Three months ended September 30, 2016 2015 2016 2015 2016 2015 Commercial: Mortgages — 1 $— $1,190 $— $1,190 Construction & development — — — — — — Commercial & industrial 5 — 914 — 914 — Residential real estate: Mortgages — 2 — 526 — 526 Homeowner construction — — — — — — Consumer: Home equity lines — — — — — — Home equity loans — — — — — — Other — — — — — — Totals 5 3 $914 $1,716 $914 $1,716 (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. (Dollars in thousands) Outstanding Recorded Investment (1) # of Loans Pre-Modifications Post-Modifications Nine months ended September 30, 2016 2015 2016 2015 2016 2015 Commercial: Mortgages — 1 $— $1,190 $— $1,190 Construction & development — — — — — — Commercial & industrial 6 3 1,047 584 1,047 584 Residential real estate: Mortgages 1 3 3,550 619 3,550 619 Homeowner construction — — — — — — Consumer: Home equity lines — — — — — — Home equity loans — 1 — 70 — 70 Other — 1 — 35 — 35 Totals 7 9 $4,597 $2,498 $4,597 $2,498 (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. |
Schedule of How Loans Were Modified as Troubled Debt Restructuring | The following table presents information on how loans were modified as a troubled debt restructuring: (Dollars in thousands) Three months Nine months Periods ended September 30, 2016 2015 2016 2015 Below-market interest rate concession $— $— $— $— Payment deferral — 526 — 1,145 Maturity / amortization concession 324 — 457 163 Interest only payments — — 3,550 — Combination (1) 590 1,190 590 1,190 Total $914 $1,716 $4,597 $2,498 (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 Sep 30, Dec 31, Sep 30, Dec 31, Sep 30, Dec 31, Commercial: Mortgages $1,074,473 $914,774 $1,099 $3,035 $10,603 $14,144 Construction & development 98,735 122,297 — — — — Commercial & industrial 548,154 577,036 15,465 12,012 8,686 11,249 Total commercial loans $1,721,362 $1,614,107 $16,564 $15,047 $19,289 $25,393 |
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 Sep 30, Dec 31, Sep 30, Dec 31, Residential real estate: Accruing mortgages $1,042,689 $973,771 $— $— Nonaccrual mortgages 5,446 7,372 4,694 3,294 Homeowner construction 27,058 29,118 — — Total residential loans $1,075,193 $1,010,261 $4,694 $3,294 Consumer: Home equity lines $265,238 $255,047 $— $518 Home equity loans 37,533 46,427 731 222 Other 40,642 42,811 109 — Total consumer loans $343,413 $344,285 $840 $740 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Allowance for Loan Losses Rollforward Analysis | The following table presents the activity in the allowance for loan losses for the three months ended September 30, 2016 : (Dollars in thousands) Commercial Mortgages Construction C&I (1) Total Commercial Residential Consumer Total Beginning Balance $10,413 $904 $6,520 $17,837 $5,469 $2,520 $25,826 Charge-offs (1,940 ) — (3 ) (1,943 ) (52 ) (60 ) (2,055 ) Recoveries 4 — 46 50 5 23 78 Provision 1,981 78 (59 ) 2,000 (21 ) (179 ) 1,800 Ending Balance $10,458 $982 $6,504 $17,944 $5,401 $2,304 $25,649 (1) Commercial & industrial loans. The following table presents the activity in the allowance for loan losses for the nine months ended September 30, 2016 : (Dollars in thousands) Commercial Mortgages Construction C&I (1) Total Commercial Residential Consumer Total Beginning Balance $9,140 $1,758 $8,202 $19,100 $5,460 $2,509 $27,069 Charge-offs (3,271 ) — (757 ) (4,028 ) (192 ) (170 ) (4,390 ) Recoveries 21 — 134 155 9 56 220 Provision 4,568 (776 ) (1,075 ) 2,717 124 (91 ) 2,750 Ending Balance $10,458 $982 $6,504 $17,944 $5,401 $2,304 $25,649 (1) Commercial & industrial loans. The following table presents the activity in the allowance for loan losses for the three months ended September 30, 2015 : (Dollars in thousands) Commercial Mortgages Construction C&I (1) Total Commercial Residential Consumer Un-allocated Total Beginning Balance $8,529 $1,684 $7,010 $17,223 $5,405 $2,683 $2,276 $27,587 Charge-offs — — (378 ) (378 ) (34 ) (313 ) — (725 ) Recoveries 4 — 30 34 22 43 — 99 Provision (38 ) 5 691 658 150 (164 ) (444 ) 200 Ending Balance $8,495 $1,689 $7,353 $17,537 $5,543 $2,249 $1,832 $27,161 (1) Commercial & industrial loans. The following table presents the activity in the allowance for loan losses for the nine months ended September 30, 2015 : (Dollars in thousands) Commercial Mortgages Construction C&I (1) Total Commercial Residential Consumer Un-allocated Total Beginning Balance $8,202 $1,300 $7,987 $17,489 $5,430 $2,713 $2,391 $28,023 Charge-offs (400 ) — (429 ) (829 ) (88 ) (484 ) — (1,401 ) Recoveries 88 — 62 150 26 63 — 239 Provision 605 389 (267 ) 727 175 (43 ) (559 ) 300 Ending Balance $8,495 $1,689 $7,353 $17,537 $5,543 $2,249 $1,832 $27,161 (1) Commercial & industrial loans. |
Schedule of Allowance for Loan Loss by Segment & Impairment Methodology | The following table presents the Corporation’s loan portfolio and associated allowance for loan loss by portfolio segment and by impairment methodology: (Dollars in thousands) September 30, 2016 December 31, 2015 Loans Related Allowance Loans Related Allowance Loans Individually Evaluated for Impairment: Commercial: Mortgages $11,546 $972 $15,141 $1,633 Construction & development — — — — Commercial & industrial 2,403 15 3,871 771 Residential real estate 14,067 201 11,333 156 Consumer 1,818 6 1,881 23 Subtotal 29,834 1,194 32,226 2,583 Loans Collectively Evaluated for Impairment: Commercial: Mortgages $1,074,629 $9,486 $916,812 $7,507 Construction & development 98,735 982 122,297 1,758 Commercial & industrial 569,902 6,489 596,426 7,431 Residential real estate 1,065,820 5,200 1,002,222 5,304 Consumer 342,435 2,298 343,144 2,486 Subtotal 3,151,521 24,455 2,980,901 24,486 Total $3,181,355 $25,649 $3,013,127 $27,069 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Federal Home Loan Bank Advances Maturities | The following table presents maturities and weighted average interest rates on FHLBB advances outstanding as of September 30, 2016 : (Dollars in thousands) Total Outstanding Weighted Average Rate October 1, 2016 to December 31, 2016 $217,685 0.72 % 2017 100,075 1.16 2018 78,134 1.35 2019 120,758 1.67 2020 38,983 2.21 2021 and thereafter 115,980 3.30 Balance at September 30, 2016 $671,615 1.56 % |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital Requirements | The following table presents the Corporation’s and the Bank’s actual capital amounts and ratios, as well as the corresponding minimum and well capitalized regulatory amounts and ratios that were in effect during the respective periods: (Dollars in thousands) Actual For Capital Adequacy Purposes To Be “Well Capitalized” Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio September 30, 2016 Total Capital (to Risk-Weighted Assets): Corporation $382,766 12.31 % $248,761 8.00 % N/A N/A Bank 382,421 12.30 248,747 8.00 $310,934 10.00 % Tier 1 Capital (to Risk-Weighted Assets): Corporation 356,938 11.48 186,570 6.00 N/A N/A Bank 356,593 11.47 186,561 6.00 248,747 8.00 Common Equity Tier 1 Capital (to Risk-Weighted Assets): Corporation 334,939 10.77 139,928 4.50 N/A N/A Bank 356,593 11.47 139,920 4.50 202,107 6.50 Tier 1 Capital (to Average Assets): (1) Corporation 356,938 8.95 159,610 4.00 N/A N/A Bank 356,593 8.94 159,543 4.00 199,429 5.00 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): 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): (1) 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 (1) Leverage ratio. |
Derivative Financial Instrume30
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivatives by Balance Sheet Location | The following table presents the fair values of derivative instruments in the Corporation’s Consolidated Balance Sheets: (Dollars in thousands) Asset Derivatives Liability Derivatives Fair Value Fair Value Balance Sheet Location Sep 30, 2016 Dec 31, 2015 Balance Sheet Location Sep 30, 2016 Dec 31, 2015 Derivatives Designated as Cash Flow Hedging Instruments: Interest rate risk management contracts: Interest rate caps Other assets $38 $187 Other liabilities $— $— Derivatives not Designated as Hedging Instruments: Forward loan commitments: Interest rate lock commitments Other assets 3,629 1,220 Other liabilities 22 — Commitments to sell mortgage loans Other assets 34 — Other liabilities 4,891 2,012 Loan related derivative contracts: Interest rate swaps with customers Other assets 21,143 8,027 Other liabilities — — Mirror swaps with counterparties Other assets — — Other liabilities 21,761 8,266 Risk participation agreements Other assets 3 56 Other liabilities 126 69 Total $24,847 $9,490 $26,800 $10,347 |
Derivative Instruments Effect in Statements of Income and Changes in Shareholders' Equity | The following tables present the effect of derivative instruments in the Corporation’s Consolidated Statements of Income and Changes in Shareholders’ Equity: (Dollars in thousands) Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) Location of Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) Gain (Loss) Recognized in Income (Ineffective Portion) Three months Nine months Three months Nine months Periods ended September 30, 2016 2015 2016 2015 2016 2015 2016 2015 Derivatives Designated as Cash Flow Hedging Instruments: Interest rate risk management contracts: Interest rate swap contracts $— $81 $— $255 Interest Expense $— $— $— $— Interest rate caps (4 ) — (94 ) — Interest Expense — — — — Total ($4 ) $81 ($94 ) $255 $— $— $— $— (Dollars in thousands) Amount of Gain (Loss) Recognized in Income on Derivatives Amount of Gain (Loss) Recognized in Income on Derivatives Three months Nine months Periods ended September 30, Statement of Income Location 2016 2015 2016 2015 Derivatives not Designated as Hedging Instruments: Forward loan commitments: Interest rate lock commitments Mortgage banking revenues $641 $864 $2,387 $1,002 Commitments to sell mortgage loans Mortgage banking revenues (665 ) (1,470 ) (2,845 ) (999 ) Customer related derivative contracts: Interest rate swaps with customers Loan related derivative income 32 6,448 17,064 8,717 Mirror swaps with counterparties Loan related derivative income 1,250 (6,081 ) (14,527 ) (6,799 ) Risk participation agreements Loan related derivative income (104 ) (40 ) (206 ) (229 ) Total $1,154 ($279 ) $1,873 $1,692 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Change in Fair Value Mortgage Loans Held For Sale, Interest Rate Lock Commitments and Commitments to Sell Disclosures | The following table presents the changes in fair value related to mortgage loans held for sale, interest rate lock commitments and commitments to sell residential real estate mortgage loans, for which the fair value option was elected. Changes in fair values are reported as a component of mortgage banking revenues in the Consolidated Statements of Income. (Dollars in thousands) Three months Nine months Periods ended September 30, 2016 2015 2016 2015 Mortgage loans held for sale $117 $490 $612 ($79 ) Interest rate lock commitments 641 864 2,387 1,002 Commitments to sell mortgage loans (665 ) (1,470 ) (2,845 ) (999 ) Total changes in fair value $93 ($116 ) $154 ($76 ) |
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 (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2016 Assets: Securities available for sale: Obligations of U.S. government-sponsored enterprises $75,484 $— $75,484 $— Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 442,687 — 442,687 — Obligations of states and political subdivisions 18,396 — 18,396 — Individual name issuer trust preferred debt securities 25,684 — 25,684 — Corporate bonds 2,005 — 2,005 — Mortgage loans held for sale 45,162 — 45,162 — Derivative assets (1) 24,847 — 24,847 — Total assets at fair value on a recurring basis $634,265 $— $634,265 $— Liabilities: Derivative liabilities (2) $26,800 $— $26,800 $— Contingent consideration liability (3) 2,047 — — 2,047 Total liabilities at fair value on a recurring basis $28,847 $— $26,800 $2,047 (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 Significant Other Observable Inputs Significant Unobservable Inputs 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. |
Change in Contingent Consideration Liability | The following table presents the change in the contingent consideration liability, a Level 3 liability measured at fair value on a recurring basis, during the periods indicated: (Dollars in thousands) Three months Nine months Periods ended September 30, 2016 2015 2016 2015 Balance at beginning of period $2,986 $— $2,945 $— Initial recognition — 2,904 — 2,904 Change in fair value (939 ) 16 (898 ) 16 Payments — — — — Balance at end of period $2,047 $2,920 $2,047 $2,920 |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | The following table presents the carrying value of assets held at September 30, 2016 , which were written down to fair value during the nine months ended September 30, 2016 : (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Collateral dependent impaired loans $5,726 $— $— $5,726 Loan servicing rights 3,314 — — 3,314 Property acquired through foreclosure or repossession 575 — — 575 Total assets at fair value on a nonrecurring basis $9,615 $— $— $9,615 The allowance for loan losses on collateral dependent impaired loans amounted to $1.0 million at September 30, 2016 . 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 collateral dependent impaired loans amounted to $2.4 million at December 31, 2015 . |
Quantitative Information About Level 3 Assets Measured at Fair Value on a Nonrecurring Basis | The following tables present valuation techniques and unobservable inputs for assets measured at fair value on a nonrecurring basis for which the Corporation has utilized Level 3 inputs to determine fair value: (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range of Inputs Utilized (Weighted Average) September 30, 2016 Collateral dependent impaired loans $5,726 Appraisals of collateral Discount for costs to sell 0% - 20% (10%) Appraisal adjustments (1) 0% - 15% (14%) Loan servicing rights $3,314 Discounted Cash Flow Discount rates 10% - 14% (11%) Prepayment rates 13% - 24% (16%) Property acquired through foreclosure or repossession $575 Appraisals of collateral Discount for costs to sell 10% Appraisal adjustments (1) 6% - 15% (13%) (1) Management may adjust appraisal values to reflect market value declines or other discounts resulting from its knowledge of the property. (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% (1) Management may adjust appraisal values to reflect market value declines or other discounts resulting from its knowledge of the property. |
Carrying Amounts and Estimated Fair Values of Financial Instruments | The following tables present the carrying amount, estimated fair value and placement in the fair value hierarchy of the Corporation’s financial instruments. The tables exclude financial instruments for which the carrying value approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, FHLBB stock, accrued interest receivable and bank-owned life insurance. Financial liabilities for which the fair value approximates carrying value include non-maturity deposits and accrued interest payable. (Dollars in thousands) September 30, 2016 Carrying Amount Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Financial Assets: Securities held to maturity $16,848 $17,492 $— $17,492 $— Loans, net of allowance for loan losses 3,155,706 3,190,240 — — 3,190,240 Financial Liabilities: Time deposits $913,649 $916,994 $— $916,994 $— FHLBB advances 671,615 685,238 — 685,238 — Junior subordinated debentures 22,681 16,732 — 16,732 — (Dollars in thousands) December 31, 2015 Carrying Amount Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs 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 — |
Defined Benefit Pension Plans (
Defined Benefit Pension Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost | The composition of net periodic benefit cost was as follows: (Dollars in thousands) Qualified Pension Plan Non-Qualified Retirement Plans Three months Nine months Three months Nine months Periods ended September 30, 2016 2015 2016 2015 2016 2015 2016 2015 Net Periodic Benefit Cost: Service cost $537 $615 $1,611 $1,844 $30 $20 $91 $59 Interest cost 644 731 1,932 2,195 108 122 324 367 Expected return on plan assets (1,158 ) (1,129 ) (3,475 ) (3,386 ) — — — — Amortization of prior service (credit) cost (6 ) (6 ) (17 ) (17 ) — — — — Recognized net actuarial loss 207 313 621 937 62 61 185 183 Net periodic benefit cost $224 $524 $672 $1,573 $200 $203 $600 $609 |
Schedule of Assumptions Used for Net Periodic Benefit Cost | The following table presents the measurement date and weighted-average assumptions used to determine net periodic benefit cost: Qualified Pension Plan Non-Qualified Retirement Plans Periods ended September 30, 2016 2015 2016 2015 Measurement date Dec 31, 2015 Dec 31, 2014 Dec 31, 2015 Dec 31, 2014 Discount rate N/A 4.125% N/A 3.90% Equivalent single discount rate for benefit obligations 4.48% N/A 4.19% N/A Equivalent single discount rate for service cost 4.63 N/A 4.59 N/A Equivalent single discount rate for interest cost 3.88 N/A 3.44 N/A Expected long-term return on plan assets 6.75 7.25 N/A N/A Rate of compensation increase 3.75 3.75 3.75 3.75 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Statement of Operations and Total Assets by Reportable Segment | The following tables present the statement of operations and total assets for Washington Trust’s reportable segments: (Dollars in thousands) Commercial Banking Wealth Management Services Corporate Consolidated Total Three months ended September 30, 2016 2015 2016 2015 2016 2015 2016 2015 Net interest income (expense) $22,860 $21,278 ($11 ) ($15 ) $4,530 $4,734 $27,379 $25,997 Provision for loan losses 1,800 200 — — — — 1,800 200 Net interest income (expense) after provision for loan losses 21,060 21,078 (11 ) (15 ) 4,530 4,734 25,579 25,797 Noninterest income 7,101 4,498 9,623 8,902 537 513 17,261 13,913 Noninterest expenses: Depreciation and amortization expense 709 626 501 404 58 50 1,268 1,080 Other noninterest expenses (1) 14,759 13,805 5,584 6,820 3,039 2,833 23,382 23,458 Total noninterest expenses 15,468 14,431 6,085 7,224 3,097 2,883 24,650 24,538 Income before income taxes 12,693 11,145 3,527 1,663 1,970 2,364 18,190 15,172 Income tax expense 4,392 3,747 1,261 688 210 529 5,863 4,964 Net income $8,301 $7,398 $2,266 $975 $1,760 $1,835 $12,327 $10,208 Total assets at period end $3,617,967 $3,074,611 $53,236 $62,461 $532,831 $537,764 $4,204,034 $3,674,836 Expenditures for long-lived assets 424 1,006 280 51 58 61 762 1,118 (1) Other noninterest expenses for the Wealth Management Services segment includes a $939 thousand benefit resulting from the reduction of a contingent consideration liability in the three months ended September 30, 2016 and $504 thousand of acquisition related expenses in the three months ended September 30, 2015 . (Dollars in thousands) Commercial Banking Wealth Management Services Corporate Consolidated Total Nine months ended September 30, 2016 2015 2016 2015 2016 2015 2016 2015 Net interest income (expense) $67,414 $63,115 ($46 ) ($38 ) $14,522 $14,650 $81,890 $77,727 Provision for loan losses 2,750 300 — — — — 2,750 300 Net interest income (expense) after provision for loan losses 64,664 62,815 (46 ) (38 ) 14,522 14,650 79,140 77,427 Noninterest income 17,331 15,164 28,278 26,249 2,200 1,781 47,809 43,194 Noninterest expenses: Depreciation and amortization expense 2,093 1,936 1,440 1,009 170 161 3,703 3,106 Other noninterest expenses (1) 43,788 41,259 19,084 19,200 9,555 8,803 72,427 69,262 Total noninterest expenses 45,881 43,195 20,524 20,209 9,725 8,964 76,130 72,368 Income before income taxes 36,114 34,784 7,708 6,002 6,997 7,467 50,819 48,253 Income tax expense 12,336 10,878 2,788 2,682 1,376 1,972 16,500 15,532 Net income $23,778 $23,906 $4,920 $3,320 $5,621 $5,495 $34,319 $32,721 Total assets at period end $3,617,967 $3,074,611 $53,236 $62,461 $532,831 $537,764 $4,204,034 $3,674,836 Expenditures for long-lived assets 1,779 2,774 468 252 361 194 2,608 3,220 (1) Other noninterest expenses for the Wealth Management Services segment includes a $898 thousand benefit resulting from the reduction of a contingent consideration liability in the nine months ended September 30, 2016 and $937 thousand of acquisition related expenses in the nine months ended September 30, 2015 . |
Other Comprehensive Income (L34
Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Activity in Other Comprehensive Income (Loss) | The following tables present the activity in other comprehensive income (loss): Three months ended September 30, 2016 2015 (Dollars in thousands) Pre-tax Amounts Income Taxes Net of Tax Pre-tax Amounts Income Taxes Net of Tax Net change in fair value of securities available for sale ($144 ) ($53 ) ($91 ) $543 $199 $344 Cash flow hedges: Change in fair value of cash flow hedges (15 ) (11 ) (4 ) (15 ) (14 ) (1 ) Net cash flow hedge losses reclassified into earnings (1) — — — 132 50 82 Net change in fair value of cash flow hedges (15 ) (11 ) (4 ) 117 36 81 Defined benefit plan obligation adjustment (2) 263 97 166 367 134 233 Total other comprehensive income (loss) $104 $33 $71 $1,027 $369 $658 (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. Nine months ended September 30, 2016 2015 (Dollars in thousands) Pre-tax Amounts Income Taxes Net of Tax Pre-tax Amounts Income Taxes Net of Tax Net change in fair value of securities available for sale $2,621 $970 $1,651 ($1,018 ) ($325 ) ($693 ) Cash flow hedges: Change in fair value of cash flow hedges (129 ) (35 ) (94 ) (21 ) (11 ) (10 ) Net cash flow hedge losses reclassified into earnings (1) — — — 418 153 265 Net change in fair value of cash flow hedges (129 ) (35 ) (94 ) 397 142 255 Defined benefit plan obligation adjustment (2) 789 292 497 1,102 280 822 Total other comprehensive income (loss) $3,281 $1,227 $2,054 $481 $97 $384 (1) Included in interest expense on junior subordinated debentures in the Consolidated Statements of Income. (2) Included in salaries and employee benefits expense in the Consolidated Statements of Income. |
Components of Accumulated Other Comprehensive Income (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 Net Unrealized Losses on Cash Flow Hedges Pension Benefit Adjustment Total Balance at December 31, 2015 $1,051 ($43 ) ($10,707 ) ($9,699 ) Other comprehensive income (loss) before reclassifications 1,651 (94 ) — 1,557 Amounts reclassified from accumulated other comprehensive income — — 497 497 Net other comprehensive income (loss) 1,651 (94 ) 497 2,054 Balance at September 30, 2016 $2,702 ($137 ) ($10,210 ) ($7,645 ) (Dollars in thousands) Net Unrealized Gains on Available For Sale Securities 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 (693 ) (10 ) — (703 ) Amounts reclassified from accumulated other comprehensive income — 265 822 1,087 Net other comprehensive (loss) income (693 ) 255 822 384 Balance at September 30, 2015 $3,529 ($32 ) ($11,922 ) ($8,425 ) |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Calculation of Earnings Per Share | The following table presents the calculation of earnings per common share: (Dollars and shares in thousands, except per share amounts) Three Months Nine months Periods ended September 30, 2016 2015 2016 2015 Earnings per common share - basic: Net income $12,327 $10,208 $34,319 $32,721 Less dividends and undistributed earnings allocated to participating securities (25 ) (27 ) (72 ) (100 ) Net income applicable to common shareholders $12,302 $10,181 $34,247 $32,621 Weighted average common shares 17,090 16,939 17,060 16,837 Earnings per common share - basic $0.72 $0.60 $2.01 $1.94 Earnings per common share - diluted: Net income $12,327 $10,208 $34,319 $32,721 Less dividends and undistributed earnings allocated to participating securities (25 ) (28 ) (72 ) (100 ) Net income applicable to common shareholders $12,302 $10,180 $34,247 $32,621 Weighted average common shares 17,090 16,939 17,060 16,837 Dilutive effect of common stock equivalents 113 163 138 190 Weighted average diluted common shares 17,203 17,102 17,198 17,027 Earnings per common share - diluted $0.72 $0.60 $1.99 $1.92 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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) Sep 30, Dec 31, Financial instruments whose contract amounts represent credit risk: Commitments to extend credit: Commercial loans $374,689 $360,795 Home equity lines 227,656 219,427 Other loans 50,670 44,164 Standby letters of credit 5,648 5,629 Financial instruments whose notional amounts exceed the amount of credit risk: Forward loan commitments: Interest rate lock commitments 112,083 49,712 Commitments to sell mortgage loans 155,901 87,498 Loan related derivative contracts: Interest rate swaps with customers 446,268 302,142 Mirror swaps with counterparties 446,268 302,142 Risk participation-in agreements 21,474 21,474 |
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) October 1, 2016 to December 31, 2016 $880 2017 3,478 2018 3,200 2019 2,923 2020 2,262 2021 and thereafter 28,167 Total minimum lease payments $40,910 |
Cash and Due from Banks (Narrat
Cash and Due from Banks (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Cash and Cash Equivalents [Abstract] | ||
Average reserve deposited with the Board of Governors of the Federal Reserve Bank | $ 11.2 | $ 10.5 |
Interest-bearing deposits in other banks | $ 77 | $ 48.2 |
Securities (Narrative) (Details
Securities (Narrative) (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2016USD ($)security | Dec. 31, 2015USD ($)security | |
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Fair Value of Available for Sale and Held to Maturity securities pledged as collateral | $ 559 | $ 346.1 |
Amortized cost of callable debt securities | 122.5 | |
Fair value of callable debt securities | $ 118.5 | |
Number of securities in a continuous unrealized loss position total | security | 20 | 26 |
Individual name issuer trust preferred debt securities | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Number of securities in a continuous unrealized loss position total | security | 10 | 10 |
Securities in 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 | $ 10.9 | |
Unrealized losses of trust preferred securities of individual name issuers that are below investment grade | $ (1.5) | |
Minimum [Member] | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Callable Debt Securities, Maturity Period | 5 months | |
Callable Debt Securities, Call Feature, Period | 1 month | |
Maximum [Member] | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Callable Debt Securities, Maturity Period | 20 years | |
Callable Debt Securities, Call Feature, Period | 5 years |
Securities (Summary of Investme
Securities (Summary of Investments) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Available for sale securities amortized cost basis | $ 559,967 | $ 373,376 |
Available for sale securities unrealized gains | 8,819 | 7,203 |
Available for sale securities unrealized losses | (4,530) | (5,535) |
Available for sale, at fair value | 564,256 | 375,044 |
Held to maturity securities | 16,848 | 20,023 |
Held to maturity securities unrealized gains | 644 | 493 |
Held to maturity securities unrealized losses | 0 | 0 |
Held to maturity securities fair value | 17,492 | 20,516 |
Total available for sale and held to maturity securities amortized cost | 576,815 | 393,399 |
Total available for sale and held to maturity securities unrealized gains | 9,463 | 7,696 |
Total available for sale and held to maturity securities unrealized losses | (4,530) | (5,535) |
Total available for sale and held to maturity securities fair value | 581,748 | 395,560 |
Obligations of U.S. government-sponsored enterprises [Member] | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Available for sale securities amortized cost basis | 75,500 | 77,330 |
Available for sale securities unrealized gains | 49 | 73 |
Available for sale securities unrealized losses | (65) | (388) |
Available for sale, at fair value | 75,484 | 77,015 |
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 Maturty Securities [Line Items] | ||
Available for sale securities amortized cost basis | 434,430 | 228,908 |
Available for sale securities unrealized gains | 8,564 | 6,398 |
Available for sale securities unrealized losses | (307) | (450) |
Available for sale, at fair value | 442,687 | 234,856 |
Held to maturity securities | 16,848 | 20,023 |
Held to maturity securities unrealized gains | 644 | 493 |
Held to maturity securities unrealized losses | 0 | 0 |
Held to maturity securities fair value | 17,492 | 20,516 |
Obligations of states and political subdivisions [Member] | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Available for sale securities amortized cost basis | 18,239 | 35,353 |
Available for sale securities unrealized gains | 157 | 727 |
Available for sale securities unrealized losses | 0 | 0 |
Available for sale, at fair value | 18,396 | 36,080 |
Individual name issuer trust preferred debt securities | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Available for sale securities amortized cost basis | 29,842 | 29,815 |
Available for sale securities unrealized gains | 0 | 0 |
Available for sale securities unrealized losses | (4,158) | (4,677) |
Available for sale, at fair value | 25,684 | 25,138 |
Corporate bonds [Member] | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Available for sale securities amortized cost basis | 1,956 | 1,970 |
Available for sale securities unrealized gains | 49 | 5 |
Available for sale securities unrealized losses | 0 | (20) |
Available for sale, at fair value | $ 2,005 | $ 1,955 |
Securities (Securities by Contr
Securities (Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Available for sale debt securities maturities within 1 year amortized cost | $ 70,876 | |
Available for sale debt securities maturities 1-5 years amortized cost | 187,480 | |
Available for sale debt securities maturities 5-10 years amortized cost | 185,358 | |
Available for sale debt securities maturities after 10 years amortized cost | 116,253 | |
Available for sale debt securities maturities total amortized cost | 559,967 | |
Available for sale debt securities maturities within 1 year fair value | 72,201 | |
Available for sale debt securities maturities 1-5 years fair value | 190,915 | |
Available for sale debt securities maturities 5-10 years fair value | 187,402 | |
Available for sale debt securities maturities after 10 years fair value | 113,738 | |
Available for sale debt securities fair value | 564,256 | |
Held to maturity debt securities maturities within 1 year amortized cost | 4,019 | |
Held to maturity debt securities maturities 1-5 years amortized cost | 8,835 | |
Held to maturity debt securities maturities 5-10 years amortized cost | 3,394 | |
Held to maturity debt securities maturities after 10 years amortized cost | 600 | |
Held to maturity securities | 16,848 | $ 20,023 |
Held to maturity debt securities maturities within 1 year fair value | 4,172 | |
Held to maturity debt securities maturities 1-5 years fair value | 9,173 | |
Held to maturity debt securities maturities 5-10 years fair value | 3,524 | |
Held to maturity debt securities maturities after 10 years fair value | 623 | |
Held to maturity securities fair value | $ 17,492 | $ 20,516 |
Securities (Securities in a Con
Securities (Securities in a Continuous Unrealized Loss Position) (Details) $ in Thousands | Sep. 30, 2016USD ($)security | Dec. 31, 2015USD ($)security |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities in a continuous unrealized loss position for less than 12 months | security | 10 | 16 |
Fair value of securities in a continuous unrealized loss position for less than 12 months | $ 166,333 | $ 97,766 |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | $ (372) | $ (858) |
Number of securities in a continuous unrealized loss position for 12 months or longer | security | 10 | 10 |
Fair value of securities in a continuous unrealized loss position for 12 months or longer | $ 25,684 | $ 25,138 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | $ (4,158) | $ (4,677) |
Number of securities in a continuous unrealized loss position total | security | 20 | 26 |
Fair value of securities in a continuous unrealized loss position total | $ 192,017 | $ 122,904 |
Unrealized losses of securities in a continuous unrealized loss position total | $ (4,530) | $ (5,535) |
Obligations of U.S. government-sponsored enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities in a continuous unrealized loss position for less than 12 months | security | 2 | 4 |
Fair value of securities in a continuous unrealized loss position for less than 12 months | $ 29,935 | $ 34,767 |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | $ (65) | $ (388) |
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 | 2 | 4 |
Fair value of securities in a continuous unrealized loss position total | $ 29,935 | $ 34,767 |
Unrealized losses of securities in a continuous unrealized loss position total | $ (65) | $ (388) |
Mortgage-backed securities issued by U.S. government-sponsored agencies and U.S. government-sponsored enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities in a continuous unrealized loss position for less than 12 months | security | 8 | 9 |
Fair value of securities in a continuous unrealized loss position for less than 12 months | $ 136,398 | $ 61,764 |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | $ (307) | $ (450) |
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 | 8 | 9 |
Fair value of securities in a continuous unrealized loss position total | $ 136,398 | $ 61,764 |
Unrealized losses of securities in a continuous unrealized loss position total | $ (307) | $ (450) |
Individual name issuer trust preferred debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities in a continuous unrealized loss position for less than 12 months | 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 | 10 |
Fair value of securities in a continuous unrealized loss position for 12 months or longer | $ 25,684 | $ 25,138 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | $ (4,158) | $ (4,677) |
Number of securities in a continuous unrealized loss position total | security | 10 | 10 |
Fair value of securities in a continuous unrealized loss position total | $ 25,684 | $ 25,138 |
Unrealized losses of securities in a continuous unrealized loss position total | $ (4,158) | $ (4,677) |
Corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities in a continuous unrealized loss position for less than 12 months | security | 3 | |
Fair value of securities in a continuous unrealized loss position for less than 12 months | $ 1,235 | |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | $ (20) | |
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 | 3 | |
Fair value of securities in a continuous unrealized loss position total | $ 1,235 | |
Unrealized losses of securities in a continuous unrealized loss position total | $ (20) |
Loans (Narrative) (Details)
Loans (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Loans Receivable Net Deferred Cost Originated | $ 2,800 | $ 2,647 |
Loans Receivable Net Deferred Premium on Purchased Loans | 641 | 84 |
Loans Pledged as Collateral | 1,500,000 | 1,300,000 |
Mortgage Loans in Process of Foreclosure | 5,000 | 2,600 |
Past due loans included in nonaccrual loans | $ 18,800 | $ 13,600 |
Loans (Narrative - Troubled Deb
Loans (Narrative - Troubled Debt Restructurings) (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Troubled Debt Restructuring, Recorded Investment | $ 18.5 | $ 18.5 |
Specific Reserves on Troubled Debt Restructurings | $ 1.1 | $ 1.8 |
Loans (Narrative - Credit Quali
Loans (Narrative - Credit Quality Indicators) (Details) - rating | Sep. 30, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Weighted Average Commercial Loan Portfolio Risk Rating | 4.70 | 4.68 |
Loans (Summary of Loans) (Detai
Loans (Summary of Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Troubled Debt Restructuring, Recorded Investment | $ 18,500 | $ 18,500 | |
Commercial | 1,757,215 | 1,654,547 | |
Residential real estate | 1,079,887 | 1,013,555 | |
Consumer | 344,253 | 345,025 | |
Total loans | [1] | $ 3,181,355 | $ 3,013,127 |
Percent of Total Loans | [1] | 100.00% | 100.00% |
Commercial Mortgages [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commercial | [2] | $ 1,086,175 | $ 931,953 |
Total loans | $ 1,086,175 | $ 931,953 | |
Percent of Total Loans | [2] | 34.00% | 31.00% |
Commercial Construction & Development [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commercial | [3] | $ 98,735 | $ 122,297 |
Total loans | $ 98,735 | $ 122,297 | |
Percent of Total Loans | [3] | 3.00% | 4.00% |
Commercial & Industrial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commercial | [4] | $ 572,305 | $ 600,297 |
Total loans | $ 572,305 | $ 600,297 | |
Percent of Total Loans | [4] | 18.00% | 20.00% |
Commercial Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commercial | $ 1,757,215 | $ 1,654,547 | |
Percent of Total Loans | 55.00% | 55.00% | |
Residential Mortgage [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Residential real estate | $ 1,052,829 | $ 984,437 | |
Total loans | $ 1,052,829 | $ 984,437 | |
Percent of Total Loans | 33.00% | 33.00% | |
Homeowner Construction [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Residential real estate | $ 27,058 | $ 29,118 | |
Total loans | $ 27,058 | $ 29,118 | |
Percent of Total Loans | 1.00% | 1.00% | |
Residential Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Residential real estate | $ 1,079,887 | $ 1,013,555 | |
Percent of Total Loans | 34.00% | 34.00% | |
Home Equity Lines [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Consumer | $ 265,238 | $ 255,565 | |
Total loans | $ 265,238 | $ 255,565 | |
Percent of Total Loans | 8.00% | 8.00% | |
Home Equity Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Consumer | $ 38,264 | $ 46,649 | |
Total loans | $ 38,264 | $ 46,649 | |
Percent of Total Loans | 1.00% | 2.00% | |
Other Consumer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Consumer | [5] | $ 40,751 | $ 42,811 |
Total loans | $ 40,751 | $ 42,811 | |
Percent of Total Loans | [5] | 2.00% | 1.00% |
Consumer Segment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Consumer | $ 344,253 | $ 345,025 | |
Percent of Total Loans | 11.00% | 11.00% | |
[1] | Includes net unamortized loan origination costs of $2.8 million and $2.6 million, respectively, at September 30, 2016 and December 31, 2015 and net unamortized premiums on purchased loans of $641 thousand and $84 thousand, respectively, at September 30, 2016 and December 31, 2015. | ||
[2] | Loans primarily secured by income producing property. | ||
[3] | Loans for construction of commercial properties, loans to developers for construction of residential properties and loans for land development. | ||
[4] | Loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate. | ||
[5] | Loans to individuals secured by general aviation aircraft and other personal installment loans. |
Loans (Nonaccrual Loans) (Detai
Loans (Nonaccrual Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 23,950 | $ 21,047 |
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 on payment | 5,200 | 7,400 |
Commercial Mortgages [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 10,357 | 5,711 |
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 | 1,744 | 3,018 |
Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 10,140 | 10,666 |
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 | 271 | 528 |
Home Equity Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 1,322 | 1,124 |
Other Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 116 | $ 0 |
Loans (Past Due Loans) (Details
Loans (Past Due Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | $ 21,255 | $ 17,559 | |
Current | 3,160,100 | 2,995,568 | |
Total loans | [1] | 3,181,355 | 3,013,127 |
Commercial Mortgages [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 10,352 | 4,555 | |
Current | 1,075,823 | 927,398 | |
Total loans | 1,086,175 | 931,953 | |
Commercial Construction & Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Current | 98,735 | 122,297 | |
Total loans | 98,735 | 122,297 | |
Commercial & Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 1,047 | 462 | |
Current | 571,258 | 599,835 | |
Total loans | 572,305 | 600,297 | |
Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 8,291 | 9,286 | |
Current | 1,044,538 | 975,151 | |
Total loans | 1,052,829 | 984,437 | |
Homeowner Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Current | 27,058 | 29,118 | |
Total loans | 27,058 | 29,118 | |
Home Equity Lines [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 110 | 1,774 | |
Current | 265,128 | 253,791 | |
Total loans | 265,238 | 255,565 | |
Home Equity Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 1,309 | 1,460 | |
Current | 36,955 | 45,189 | |
Total loans | 38,264 | 46,649 | |
Other Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 146 | 22 | |
Current | 40,605 | 42,789 | |
Total loans | 40,751 | 42,811 | |
30-59 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 3,294 | 5,137 | |
30-59 | Commercial Mortgages [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 51 | |
30-59 | Commercial Construction & Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
30-59 | Commercial & Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 405 | |
30-59 | Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 2,737 | 3,028 | |
30-59 | Homeowner Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
30-59 | Home Equity Lines [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 110 | 883 | |
30-59 | Home Equity Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 412 | 748 | |
30-59 | Other Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 35 | 22 | |
60-89 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 3,525 | 3,836 | |
60-89 | Commercial Mortgages [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 2,497 | 0 | |
60-89 | Commercial Construction & Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
60-89 | Commercial & Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 9 | |
60-89 | Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 860 | 2,964 | |
60-89 | Homeowner Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
60-89 | Home Equity Lines [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 373 | |
60-89 | Home Equity Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 166 | 490 | |
60-89 | Other Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 2 | 0 | |
Over 90 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 14,436 | 8,586 | |
Over 90 | Commercial Mortgages [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 7,855 | 4,504 | |
Over 90 | Commercial Construction & Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Over 90 | Commercial & Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 1,047 | 48 | |
Over 90 | Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 4,694 | 3,294 | |
Over 90 | Homeowner Construction [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Over 90 | Home Equity Lines [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 518 | |
Over 90 | Home Equity Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 731 | 222 | |
Over 90 | Other Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | $ 109 | $ 0 | |
[1] | Includes net unamortized loan origination costs of $2.8 million and $2.6 million, respectively, at September 30, 2016 and December 31, 2015 and net unamortized premiums on purchased loans of $641 thousand and $84 thousand, respectively, at September 30, 2016 and December 31, 2015. |
Loans (Impaired Loans) (Details
Loans (Impaired Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | $ 20,660 | $ 15,118 |
Recorded Investment of Impaired Loans with Related Allowance | [1] | 9,187 | 17,138 |
Total Recorded Investment of Impaired Loans | [1] | 29,847 | 32,256 |
Unpaid Principal of Impaired Loans with No Related Allowance | 21,886 | 16,399 | |
Unpaid Principal of Impaired Loans with Related Allowance | 11,123 | 17,493 | |
Total Unpaid Principal of Impaired Loans | 33,009 | 33,892 | |
No Related Allowance on Impaired Loans | 0 | 0 | |
Related Allowance on Impaired Loans | 1,194 | 2,583 | |
Commercial Mortgages [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 3,980 | 4,292 |
Recorded Investment of Impaired Loans with Related Allowance | [1] | 7,567 | 10,873 |
Unpaid Principal of Impaired Loans with No Related Allowance | 4,903 | 5,101 | |
Unpaid Principal of Impaired Loans with Related Allowance | 9,427 | 10,855 | |
No Related Allowance on Impaired Loans | 0 | 0 | |
Related Allowance on Impaired Loans | 972 | 1,633 | |
Commercial Construction & Development [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 0 | 0 |
Recorded Investment of Impaired Loans with Related Allowance | [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 | |
Commercial & Industrial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 1,945 | 1,849 |
Recorded Investment of Impaired Loans with Related Allowance | [1] | 460 | 2,024 |
Unpaid Principal of Impaired Loans with No Related Allowance | 2,056 | 1,869 | |
Unpaid Principal of Impaired Loans with Related Allowance | 511 | 2,248 | |
No Related Allowance on Impaired Loans | 0 | 0 | |
Related Allowance on Impaired Loans | 15 | 771 | |
Residential Mortgage [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 13,029 | 8,441 |
Recorded Investment of Impaired Loans with Related Allowance | [1] | 1,047 | 2,895 |
Unpaid Principal of Impaired Loans with No Related Allowance | 13,200 | 8,826 | |
Unpaid Principal of Impaired Loans with Related Allowance | 1,073 | 2,941 | |
No Related Allowance on Impaired Loans | 0 | 0 | |
Related Allowance on Impaired Loans | 201 | 156 | |
Homeowner Construction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 0 | 0 |
Recorded Investment of Impaired Loans with Related Allowance | [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 | |
Home Equity Lines [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 271 | 6 |
Recorded Investment of Impaired Loans with Related Allowance | [1] | 0 | 522 |
Unpaid Principal of Impaired Loans with No Related Allowance | 271 | 64 | |
Unpaid Principal of Impaired Loans with Related Allowance | 0 | 522 | |
No Related Allowance on Impaired Loans | 0 | 0 | |
Related Allowance on Impaired Loans | 0 | 2 | |
Home Equity Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 1,323 | 530 |
Recorded Investment of Impaired Loans with Related Allowance | [1] | 79 | 679 |
Unpaid Principal of Impaired Loans with No Related Allowance | 1,344 | 539 | |
Unpaid Principal of Impaired Loans with Related Allowance | 79 | 783 | |
No Related Allowance on Impaired Loans | 0 | 0 | |
Related Allowance on Impaired Loans | 1 | 21 | |
Other Consumer [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 112 | 0 |
Recorded Investment of Impaired Loans with Related Allowance | [1] | 34 | 145 |
Unpaid Principal of Impaired Loans with No Related Allowance | 112 | 0 | |
Unpaid Principal of Impaired Loans with Related Allowance | 33 | 144 | |
No Related Allowance on Impaired Loans | 0 | 0 | |
Related Allowance on Impaired Loans | 5 | 0 | |
Commercial Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Total Recorded Investment of Impaired Loans | [1] | 13,952 | 19,038 |
Total Unpaid Principal of Impaired Loans | 16,897 | 20,073 | |
Related Allowance on Impaired Loans | 987 | 2,404 | |
Residential Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Total Recorded Investment of Impaired Loans | [1] | 14,076 | 11,336 |
Total Unpaid Principal of Impaired Loans | 14,273 | 11,767 | |
Related Allowance on Impaired Loans | 201 | 156 | |
Consumer Segment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Total Recorded Investment of Impaired Loans | [1] | 1,819 | 1,882 |
Total Unpaid Principal of Impaired Loans | 1,839 | 2,052 | |
Related Allowance on Impaired Loans | $ 6 | $ 23 | |
[1] | The recorded investment in impaired loans consists of unpaid principal balance, net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs. For impaired accruing loans (troubled debt restructurings for which management has concluded that the collectibility of the loan is not in doubt), the recorded investment also includes accrued interest. |
Loans (Impaired Loans Interest
Loans (Impaired Loans Interest Income Recognized) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment of Impaired Loans | $ 31,233 | $ 23,469 | $ 30,796 | $ 22,273 |
Interest Income Recognized on Impaired Loans | 161 | 144 | 565 | 405 |
Commercial Mortgages [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment of Impaired Loans | 13,159 | 14,583 | 13,856 | 14,692 |
Interest Income Recognized on Impaired Loans | 40 | 82 | 220 | 237 |
Commercial Construction & Development [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment of Impaired Loans | 0 | 0 | 0 | 0 |
Interest Income Recognized on Impaired Loans | 0 | 0 | 0 | 0 |
Commercial & Industrial [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment of Impaired Loans | 2,342 | 3,376 | 3,141 | 3,164 |
Interest Income Recognized on Impaired Loans | 21 | 29 | 42 | 89 |
Residential Mortgage [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment of Impaired Loans | 13,962 | 4,484 | 11,985 | 3,735 |
Interest Income Recognized on Impaired Loans | 86 | 27 | 253 | 67 |
Homeowner Construction [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment of Impaired Loans | 0 | 0 | 0 | 0 |
Interest Income Recognized on Impaired Loans | 0 | 0 | 0 | 0 |
Home Equity Lines [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment of Impaired Loans | 297 | 157 | 427 | 227 |
Interest Income Recognized on Impaired Loans | 2 | 1 | 10 | 1 |
Home Equity Loans [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment of Impaired Loans | 1,328 | 515 | 1,240 | 224 |
Interest Income Recognized on Impaired Loans | 9 | 3 | 33 | 4 |
Other Consumer [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment of Impaired Loans | 145 | 354 | 147 | 231 |
Interest Income Recognized on Impaired Loans | $ 3 | $ 2 | $ 7 | $ 7 |
Loans (Troubled Debt Restructur
Loans (Troubled Debt Restructuring) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($)loan | Sep. 30, 2015USD ($)loan | Sep. 30, 2016USD ($)loan | Sep. 30, 2015USD ($)loan | ||
Financing Receivable, Modifications [Line Items] | |||||
Number of loans modified as a troubled debt restructuring | loan | 5 | 3 | 7 | 9 | |
Pre-Modification Recorded Investment | [1] | $ 914 | $ 1,716 | $ 4,597 | $ 2,498 |
Post-Modification Recorded Investment | [1] | $ 914 | $ 1,716 | $ 4,597 | $ 2,498 |
Commercial Mortgages [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of loans modified as a troubled debt restructuring | loan | 0 | 1 | 0 | 1 | |
Pre-Modification Recorded Investment | [1] | $ 0 | $ 1,190 | $ 0 | $ 1,190 |
Post-Modification Recorded Investment | [1] | $ 0 | $ 1,190 | $ 0 | $ 1,190 |
Commercial Construction & Development [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of loans modified as a troubled debt restructuring | loan | 0 | 0 | 0 | 0 | |
Pre-Modification Recorded Investment | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Recorded Investment | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial & Industrial [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of loans modified as a troubled debt restructuring | loan | 5 | 0 | 6 | 3 | |
Pre-Modification Recorded Investment | [1] | $ 914 | $ 0 | $ 1,047 | $ 584 |
Post-Modification Recorded Investment | [1] | $ 914 | $ 0 | $ 1,047 | $ 584 |
Residential Mortgage [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of loans modified as a troubled debt restructuring | loan | 0 | 2 | 1 | 3 | |
Pre-Modification Recorded Investment | [1] | $ 0 | $ 526 | $ 3,550 | $ 619 |
Post-Modification Recorded Investment | [1] | $ 0 | $ 526 | $ 3,550 | $ 619 |
Homeowner Construction [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of loans modified as a troubled debt restructuring | loan | 0 | 0 | 0 | 0 | |
Pre-Modification Recorded Investment | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Recorded Investment | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Home Equity Lines [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of loans modified as a troubled debt restructuring | loan | 0 | 0 | 0 | 0 | |
Pre-Modification Recorded Investment | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Recorded Investment | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Home Equity Loans [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of loans modified as a troubled debt restructuring | loan | 0 | 0 | 0 | 1 | |
Pre-Modification Recorded Investment | [1] | $ 0 | $ 0 | $ 0 | $ 70 |
Post-Modification Recorded Investment | [1] | $ 0 | $ 0 | $ 0 | $ 70 |
Other Consumer [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of loans modified as a troubled debt restructuring | loan | 0 | 0 | 0 | 1 | |
Pre-Modification Recorded Investment | [1] | $ 0 | $ 0 | $ 0 | $ 35 |
Post-Modification Recorded Investment | [1] | $ 0 | $ 0 | $ 0 | $ 35 |
[1] | The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs, at the time of the restructuring. For accruing troubled debt restructured loans, the recorded investment also includes accrued interest. |
Loans Loans (Troubled Debt Rest
Loans Loans (Troubled Debt Restructurings Type of Modification) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Financing Receivable, Modifications [Line Items] | |||||
Pre-Modification Recorded Investment | [1] | $ 914 | $ 1,716 | $ 4,597 | $ 2,498 |
Below market interest rate concession [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Pre-Modification Recorded Investment | 0 | 0 | 0 | 0 | |
Payment Deferral [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Pre-Modification Recorded Investment | 0 | 526 | 0 | 1,145 | |
Maturity / amortization concession [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Pre-Modification Recorded Investment | 324 | 0 | 457 | 163 | |
Interest only payments [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Pre-Modification Recorded Investment | 0 | 0 | 3,550 | 0 | |
Combination [Member] | |||||
Financing Receivable, Modifications [Line Items] | |||||
Pre-Modification Recorded Investment | [2] | $ 590 | $ 1,190 | $ 590 | $ 1,190 |
[1] | The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs, at the time of the restructuring. For accruing troubled debt restructured loans, the recorded investment also includes accrued interest. | ||||
[2] | Loans included in this classification were modified with a combination of any two of the concessions listed in this table. |
Loans (Credit Quality Indicator
Loans (Credit Quality Indicators - Commercial) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | $ 1,721,362 | $ 1,614,107 |
Pass [Member] | Commercial Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 1,074,473 | 914,774 |
Pass [Member] | Commercial Construction & Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 98,735 | 122,297 |
Pass [Member] | Commercial & Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 548,154 | 577,036 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 16,564 | 15,047 |
Special Mention [Member] | Commercial Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 1,099 | 3,035 |
Special Mention [Member] | Commercial Construction & Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 0 | 0 |
Special Mention [Member] | Commercial & Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 15,465 | 12,012 |
Classified [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 19,289 | 25,393 |
Classified [Member] | Commercial Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 10,603 | 14,144 |
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 | $ 8,686 | $ 11,249 |
Loans (Credit Quality Indicat53
Loans (Credit Quality Indicators - Residential, Consumer) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Under 90 Days Past Due [Member] | Accruing Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | $ 1,042,689 | $ 973,771 |
Under 90 Days Past Due [Member] | Nonaccrual Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 5,446 | 7,372 |
Under 90 Days Past Due [Member] | Homeowner Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 27,058 | 29,118 |
Under 90 Days Past Due [Member] | Residential Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 1,075,193 | 1,010,261 |
Under 90 Days Past Due [Member] | Home Equity Lines [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 265,238 | 255,047 |
Under 90 Days Past Due [Member] | Home Equity Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 37,533 | 46,427 |
Under 90 Days Past Due [Member] | Other Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 40,642 | 42,811 |
Under 90 Days Past Due [Member] | Consumer Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 343,413 | 344,285 |
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 | 4,694 | 3,294 |
Over 90 Days Past Due [Member] | Homeowner Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 0 | 0 |
Over 90 Days Past Due [Member] | Residential Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 4,694 | 3,294 |
Over 90 Days Past Due [Member] | Home Equity Lines [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 0 | 518 |
Over 90 Days Past Due [Member] | Home Equity Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 731 | 222 |
Over 90 Days Past Due [Member] | Other Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 109 | 0 |
Over 90 Days Past Due [Member] | Consumer Segment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | $ 840 | $ 740 |
Allowance for Loan Losses Allow
Allowance for Loan Losses Allowance for Loan Losses (Allowance for Loan Losses Rollforward Analysis) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Allowance, Beginning Balance | $ 25,826 | $ 27,587 | $ 27,069 | $ 28,023 | ||
Charge-offs | (2,055) | (725) | (4,390) | (1,401) | ||
Recoveries | 78 | 99 | 220 | 239 | ||
Provision | 1,800 | 200 | 2,750 | 300 | ||
Allowance, Ending Balance | 25,649 | 27,161 | 25,649 | 27,161 | ||
Commercial Mortgages [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Allowance, Beginning Balance | 10,413 | 8,529 | 9,140 | 8,202 | ||
Charge-offs | (1,940) | 0 | (3,271) | (400) | ||
Recoveries | 4 | 4 | 21 | 88 | ||
Provision | 1,981 | (38) | 4,568 | 605 | ||
Allowance, Ending Balance | 10,458 | 8,495 | 10,458 | 8,495 | ||
Commercial Construction & Development [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Allowance, Beginning Balance | 904 | 1,684 | 1,758 | 1,300 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Provision | 78 | 5 | (776) | 389 | ||
Allowance, Ending Balance | 982 | 1,689 | 982 | 1,689 | ||
Commercial & Industrial [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Allowance, Beginning Balance | 6,520 | 7,010 | 8,202 | 7,987 | [1] | |
Charge-offs | (3) | (378) | (757) | (429) | [1] | |
Recoveries | 46 | 30 | 134 | 62 | [1] | |
Provision | (59) | 691 | (1,075) | (267) | [1] | |
Allowance, Ending Balance | 6,504 | 7,353 | [1] | 6,504 | 7,353 | [1] |
Commercial Segment [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Allowance, Beginning Balance | 17,837 | 17,223 | 19,100 | 17,489 | ||
Charge-offs | (1,943) | (378) | (4,028) | (829) | ||
Recoveries | 50 | 34 | 155 | 150 | ||
Provision | 2,000 | 658 | 2,717 | 727 | ||
Allowance, Ending Balance | 17,944 | 17,537 | 17,944 | 17,537 | ||
Residential Segment [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Allowance, Beginning Balance | 5,469 | 5,405 | 5,460 | 5,430 | ||
Charge-offs | (52) | (34) | (192) | (88) | ||
Recoveries | 5 | 22 | 9 | 26 | ||
Provision | (21) | 150 | 124 | 175 | ||
Allowance, Ending Balance | 5,401 | 5,543 | 5,401 | 5,543 | ||
Consumer Segment [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Allowance, Beginning Balance | 2,520 | 2,683 | 2,509 | 2,713 | ||
Charge-offs | (60) | (313) | (170) | (484) | ||
Recoveries | 23 | 43 | 56 | 63 | ||
Provision | (179) | (164) | (91) | (43) | ||
Allowance, Ending Balance | $ 2,304 | 2,249 | $ 2,304 | 2,249 | ||
Unallocated [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Allowance, Beginning Balance | 2,276 | 2,391 | ||||
Charge-offs | 0 | 0 | ||||
Recoveries | 0 | 0 | ||||
Provision | (444) | (559) | ||||
Allowance, Ending Balance | $ 1,832 | $ 1,832 | ||||
[1] | Commercial & industrial loans. |
Allowance for Loan Losses (Allo
Allowance for Loan Losses (Allowance for Loan Losses by Segment & Impairment Methodology) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans individually evaluated for impairment | $ 29,834 | $ 32,226 | |
Loans related allowance individually evaluated for impairment | 1,194 | 2,583 | |
Loans collectively evaluated for impairment | 3,151,521 | 2,980,901 | |
Loans related allowance collectively evaluated for impairment | 24,455 | 24,486 | |
Total loans | [1] | 3,181,355 | 3,013,127 |
Allowance | 25,649 | 27,069 | |
Commercial Mortgages [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans individually evaluated for impairment | 11,546 | 15,141 | |
Loans related allowance individually evaluated for impairment | 972 | 1,633 | |
Loans collectively evaluated for impairment | 1,074,629 | 916,812 | |
Loans related allowance collectively evaluated for impairment | 9,486 | 7,507 | |
Total loans | 1,086,175 | 931,953 | |
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 | 98,735 | 122,297 | |
Loans related allowance collectively evaluated for impairment | 982 | 1,758 | |
Total loans | 98,735 | 122,297 | |
Commercial & Industrial [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans individually evaluated for impairment | 2,403 | 3,871 | |
Loans related allowance individually evaluated for impairment | 15 | 771 | |
Loans collectively evaluated for impairment | 569,902 | 596,426 | |
Loans related allowance collectively evaluated for impairment | 6,489 | 7,431 | |
Total loans | 572,305 | 600,297 | |
Residential Segment [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans individually evaluated for impairment | 14,067 | 11,333 | |
Loans related allowance individually evaluated for impairment | 201 | 156 | |
Loans collectively evaluated for impairment | 1,065,820 | 1,002,222 | |
Loans related allowance collectively evaluated for impairment | 5,200 | 5,304 | |
Consumer Segment [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans individually evaluated for impairment | 1,818 | 1,881 | |
Loans related allowance individually evaluated for impairment | 6 | 23 | |
Loans collectively evaluated for impairment | 342,435 | 343,144 | |
Loans related allowance collectively evaluated for impairment | $ 2,298 | $ 2,486 | |
[1] | Includes net unamortized loan origination costs of $2.8 million and $2.6 million, respectively, at September 30, 2016 and December 31, 2015 and net unamortized premiums on purchased loans of $641 thousand and $84 thousand, respectively, at September 30, 2016 and December 31, 2015. |
Borrowings (Narrative Federal H
Borrowings (Narrative Federal Home Loan Bank Advances) (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Federal Home Loan Bank, Advances, Branch of FHLBB Bank [Line Items] | ||
Federal Home Loan Bank advances | $ 671,615,000 | $ 378,973,000 |
Federal Home Loan Bank of Boston [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLBB Bank [Line Items] | ||
Federal Home Loan Bank advances | 671,615,000 | 379,000,000 |
Unused line of credit with FHLBB | 40,000,000 | 40,000,000 |
Unused remaining available borrowing capacity with FHLBB | $ 611,400,000 | $ 644,800,000 |
Borrowings (Federal Home Loan B
Borrowings (Federal Home Loan Bank Advances Maturity Schedule) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Federal Home Loan Bank, Advances, Branch of FHLBB Bank [Line Items] | ||
Federal Home Loan Bank advances | $ 671,615 | $ 378,973 |
Federal Home Loan Bank of Boston [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLBB Bank [Line Items] | ||
Scheduled maturity through the end of the current year | $ 217,685 | |
Weighted average rate for scheduled maturity through the end of the current year | 0.72% | |
Scheduled maturity in year two | $ 100,075 | |
Weighted average rate for scheduled maturity in year two | 1.16% | |
Scheduled maturity in year three | $ 78,134 | |
Weighted average rate for scheduled maturity in year three | 1.35% | |
Scheduled maturity in year four | $ 120,758 | |
Weighted average rate for scheduled maturity in year four | 1.67% | |
Scheduled maturity in year five | $ 38,983 | |
Weighted average rate for scheduled maturity in year five | 2.21% | |
Scheduled maturity after year five | $ 115,980 | |
Weighted average rate for scheduled maturity after year five | 3.30% | |
Federal Home Loan Bank advances | $ 671,615 | $ 379,000 |
Total weighted average rate | 1.56% |
Shareholders' Equity (Regulator
Shareholders' Equity (Regulatory Captial Requirements) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Corporation [Member] | |||
Total Capital (to Risk-Weighted Assets): | |||
Total Capital | $ 382,766 | $ 367,443 | |
Total Capital to Risk-Weighted Assets | 12.31% | 12.58% | |
Total Capital for Capital Adequacy Purposes | $ 248,761 | $ 233,739 | |
Total Capital for Capital Adequacy Purposes to Risk-Weighted Assets | 8.00% | 8.00% | |
Tier 1 Capital (to Risk-Weighted Assets): | |||
Tier 1 Capital | $ 356,938 | $ 340,130 | |
Tier 1 Capital to Risk Weighted-Assets | 11.48% | 11.64% | |
Tier 1 Capital Required For Capital Adequacy Purposes | $ 186,570 | $ 175,304 | |
Tier 1 Capital Required for Capital Adequacy Purposes to Risk Weighted-Assets | 6.00% | 6.00% | |
Common Equity Tier 1 Capital [Abstract] | |||
Common Equity Tier 1 Capital | $ 334,939 | $ 318,131 | |
Common Equity Tier 1 Capital to Risk Weighted Assets | 10.77% | 10.89% | |
Common Equity Tier 1 Capital Required for Capital Adequacy | $ 139,928 | $ 131,478 | |
Common Equity Tier 1 Capital for Capital Adequacy to Risk Weighted Assets | 4.50% | 4.50% | |
Tier 1 Capital (to Average Assets): | |||
Tier 1 Leverage Capital | [1] | $ 356,938 | $ 340,130 |
Tier 1 Leverage Capital to Average Assets | [1] | 8.95% | 9.37% |
Tier 1 Leverage Capital Required for Capital Adequacy Purposes | [1] | $ 159,610 | $ 145,191 |
Tier 1 Leverage Capital Required for Capital Adequacy Purposes to Average Assets | [1] | 4.00% | 4.00% |
Bank [Member] | |||
Total Capital (to Risk-Weighted Assets): | |||
Total Capital | $ 382,421 | $ 366,676 | |
Total Capital to Risk-Weighted Assets | 12.30% | 12.55% | |
Total Capital for Capital Adequacy Purposes | $ 248,747 | $ 233,676 | |
Total Capital for Capital Adequacy Purposes to Risk-Weighted Assets | 8.00% | 8.00% | |
Total Capital To Be Well Capitalized | $ 310,934 | $ 292,095 | |
Total Capital To Be Well Capitalized to Risk Weighted-Assets | 10.00% | 10.00% | |
Tier 1 Capital (to Risk-Weighted Assets): | |||
Tier 1 Capital | $ 356,593 | $ 339,363 | |
Tier 1 Capital to Risk Weighted-Assets | 11.47% | 11.62% | |
Tier 1 Capital Required For Capital Adequacy Purposes | $ 186,561 | $ 175,257 | |
Tier 1 Capital Required for Capital Adequacy Purposes to Risk Weighted-Assets | 6.00% | 6.00% | |
Tier 1 Capital Required To Be Well Capitalized | $ 248,747 | $ 233,676 | |
Tier 1 Capital Required To Be Well Capitalized to Risk Weighted-Assets | 8.00% | 8.00% | |
Common Equity Tier 1 Capital [Abstract] | |||
Common Equity Tier 1 Capital | $ 356,593 | $ 339,363 | |
Common Equity Tier 1 Capital to Risk Weighted Assets | 11.47% | 11.62% | |
Common Equity Tier 1 Capital Required for Capital Adequacy | $ 139,920 | $ 131,443 | |
Common Equity Tier 1 Capital for Capital Adequacy to Risk Weighted Assets | 4.50% | 4.50% | |
Common Equity Tier 1 Capital Required to be Well Capitalized | $ 202,107 | $ 189,861 | |
Common Equity Tier 1 Capital Required to be Well Capitalized to Risk Weighted Assets | 6.50% | 6.50% | |
Tier 1 Capital (to Average Assets): | |||
Tier 1 Leverage Capital | [1] | $ 356,593 | $ 339,363 |
Tier 1 Leverage Capital to Average Assets | [1] | 8.94% | 9.36% |
Tier 1 Leverage Capital Required for Capital Adequacy Purposes | [1] | $ 159,543 | $ 145,103 |
Tier 1 Leverage Capital Required for Capital Adequacy Purposes to Average Assets | [1] | 4.00% | 4.00% |
Tier 1 Leverage Capital Required To Be Well Capitalized | [1] | $ 199,429 | $ 181,378 |
Tier 1 Leverage Capital Required To Be Well Capitalized to Average Assets | [1] | 5.00% | 5.00% |
[1] | Leverage ratio. |
Derivative Financial Instrume59
Derivative Financial Instruments (Narrative) (Details) $ in Thousands | Sep. 30, 2016USD ($)derivative_instrument | Dec. 31, 2015USD ($)derivative_instrument |
Interest rate swaps with customers [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | $ 446,268 | $ 302,142 |
Mirror swaps with counterparties [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | 446,268 | 302,142 |
Risk participation-in agreement [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | $ 21,474 | $ 21,474 |
Derivatives Designated as Cash Flow Hedging Instruments [Member] | Interest Rate Cap [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Number of Instruments Held | derivative_instrument | 2 | 2 |
Notional Amount | $ 22,700 | $ 22,681 |
Interest rate cap premium | $ 257 | |
Derivative, Cap Interest Rate | 4.50% | |
Derivatives Designated as Cash Flow Hedging Instruments [Member] | Interest Rate Swaps [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Number of Instruments Held | derivative_instrument | 2 | |
Not Designated as Hedging Instrument [Member] | Interest rate swaps with customers [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | $ 446,300 | $ 302,100 |
Not Designated as Hedging Instrument [Member] | Mirror swaps with counterparties [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | 446,268 | 302,142 |
Not Designated as Hedging Instrument [Member] | Risk participation-out agreement [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | 38,500 | 25,296 |
Not Designated as Hedging Instrument [Member] | Risk participation-in agreement [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | $ 21,500 | $ 21,500 |
Derivative Financial Instrume60
Derivative Financial Instruments (Fair Value of Derivatives by Balance Sheet Location) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | |||
Total derivative assets | [1] | $ 24,847 | $ 9,490 |
Total derivative liabilities | [2] | 26,800 | 10,347 |
Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative assets | 24,847 | 9,490 | |
Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Total derivative liabilities | 26,800 | 10,347 | |
Derivatives Designated as Cash Flow Hedging Instruments [Member] | Interest Rate Cap [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset designated as a cash flow hedge | 38 | 187 | |
Derivatives Designated as Cash Flow Hedging Instruments [Member] | Interest Rate Cap [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability designated as a cash flow hedge | 0 | 0 | |
Not Designated as Hedging Instrument [Member] | Interest Rate Commitments [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset not designated | 3,629 | 1,220 | |
Not Designated as Hedging Instrument [Member] | Interest Rate Commitments [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability not designated | 22 | 0 | |
Not Designated as Hedging Instrument [Member] | Commitments to sell mortgage loans [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset not designated | 34 | 0 | |
Not Designated as Hedging Instrument [Member] | Commitments to sell mortgage loans [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability not designated | 4,891 | 2,012 | |
Not Designated as Hedging Instrument [Member] | Interest rate swaps with customers [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset not designated | 21,143 | 8,027 | |
Not Designated as Hedging Instrument [Member] | Interest rate swaps with customers [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability not designated | 0 | 0 | |
Not Designated as Hedging Instrument [Member] | Mirror swaps with counterparties [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset not designated | 0 | 0 | |
Not Designated as Hedging Instrument [Member] | Mirror swaps with counterparties [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability not designated | 21,761 | 8,266 | |
Not Designated as Hedging Instrument [Member] | Risk participation-out agreement [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset not designated | 3 | 56 | |
Not Designated as Hedging Instrument [Member] | Risk participation-in agreement [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability not designated | $ 126 | $ 69 | |
[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. |
Derivative Financial Instrume61
Derivative Financial Instruments (Derivatives in Cash Flow Hedging Relationships, Effect in Statements of Income and Changes in Shareholders' Equity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | $ (4) | $ 81 | $ (94) | $ 255 |
Gain (Loss) Recognized in Income (Ineffective Portion) | 0 | 0 | 0 | 0 |
Interest Rate Swaps [Member] | Cash Flow Hedge [Member] | Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income (Ineffective Portion) | 0 | 0 | 0 | 0 |
Interest Rate Swaps [Member] | Cash Flow Hedge [Member] | Other Comprehensive Income (Loss) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | 0 | 81 | 0 | 255 |
Interest Rate Cap [Member] | Cash Flow Hedge [Member] | Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income (Ineffective Portion) | 0 | 0 | 0 | 0 |
Interest Rate Cap [Member] | Cash Flow Hedge [Member] | Other Comprehensive Income (Loss) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | $ (4) | $ 0 | $ (94) | $ 0 |
Derivative Financial Instrume62
Derivative Financial Instruments (Derivatives not Designated as Hedging Instruments, Effect in Statements of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income | $ 0 | $ 0 | $ 0 | $ 0 |
Interest Rate Commitments [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income | 641 | 864 | 2,387 | 1,002 |
Commitments to sell mortgage loans [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income | (665) | (1,470) | (2,845) | (999) |
Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income | 1,154 | (279) | 1,873 | 1,692 |
Not Designated as Hedging Instrument [Member] | Interest Rate Commitments [Member] | Mortgage banking revenues [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income | 641 | 864 | 2,387 | 1,002 |
Not Designated as Hedging Instrument [Member] | Commitments to sell mortgage loans [Member] | Mortgage banking revenues [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income | (665) | (1,470) | (2,845) | (999) |
Not Designated as Hedging Instrument [Member] | Interest rate swaps with customers [Member] | Loan related derivative income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income | 32 | 6,448 | 17,064 | 8,717 |
Not Designated as Hedging Instrument [Member] | Mirror swaps with counterparties [Member] | Loan related derivative income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income | 1,250 | (6,081) | (14,527) | (6,799) |
Not Designated as Hedging Instrument [Member] | Risk participation agreements [Member] | Loan related derivative income [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income | $ (104) | $ (40) | $ (206) | $ (229) |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | Aug. 01, 2015 | Sep. 30, 2016 | Dec. 31, 2015 |
Nonrecurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Allowance For Loan Loss Allocation on Collateral Dependent Impaired Loans | $ 1 | $ 2.4 | |
Contingent Consideration [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Earn-out period post acquisition | 5 years | ||
Contingent Consideration [Member] | Minimum [Member] | Recurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Discount rates | 3.00% | ||
Contingent Consideration [Member] | Maximum [Member] | Recurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Discount rates | 4.00% |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Mortgage Loans Held For Sale Disclosures) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Mortgage loans held for sale, amortized cost | $ 43,800 | $ 33,200 |
Mortgage loans held for sale, measured at fair value | 45,162 | 33,969 |
Mortgage Loans Held for Sale Difference between Fair Value and Principal Amount | $ 1,300 | $ 731 |
Fair Value Measurements (Fair65
Fair Value Measurements (Fair Value Mortgage Loans Held For Sale, Interest Rate Lock Commitments And Commitments to Sell Mortgage Loans Changes in Fair Value Disclosures) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on mortgage loans held for sale | $ 117 | $ 490 | $ 612 | $ (79) |
Gain (Loss) Recognized in Income | 0 | 0 | 0 | 0 |
Total change in fair value | 93 | (116) | 154 | (76) |
Interest Rate Commitments [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income | 641 | 864 | 2,387 | 1,002 |
Commitments to sell mortgage loans [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income | $ (665) | $ (1,470) | $ (2,845) | $ (999) |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Available for sale securities | $ 564,256 | $ 375,044 | |||||||
Mortgage loans held for sale, measured at fair value | 45,162 | 33,969 | |||||||
Derivative assets | [1] | 24,847 | 9,490 | ||||||
Derivative liabilities | [2] | 26,800 | 10,347 | ||||||
Contingent consideration liability | 2,047 | [3] | $ 2,986 | 2,945 | [3] | $ 2,920 | $ 0 | $ 0 | |
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 | 75,484 | 77,015 | |||||||
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 | 442,687 | 234,856 | |||||||
Obligations of states and political subdivisions [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Available for sale securities | 18,396 | 36,080 | |||||||
Individual name issuer trust preferred debt securities | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Available for sale securities | 25,684 | 25,138 | |||||||
Corporate bonds [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Available for sale securities | 2,005 | 1,955 | |||||||
Level 1 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative assets | [1] | 0 | 0 | ||||||
Derivative liabilities | [2] | 0 | 0 | ||||||
Contingent consideration liability | [3] | 0 | 0 | ||||||
Level 2 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative assets | [1] | 24,847 | 9,490 | ||||||
Derivative liabilities | [2] | 26,800 | 10,347 | ||||||
Contingent consideration liability | [3] | 0 | 0 | ||||||
Level 3 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative assets | [1] | 0 | 0 | ||||||
Derivative liabilities | [2] | 0 | 0 | ||||||
Contingent consideration liability | [3] | 2,047 | 2,945 | ||||||
Recurring [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Mortgage loans held for sale, measured at fair value | 45,162 | 33,969 | |||||||
Total assets at fair value on a recurring basis | 634,265 | 418,503 | |||||||
Total liabilities at fair value on a recurring basis | 28,847 | 13,292 | |||||||
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 | 75,484 | 77,015 | |||||||
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 | 442,687 | 234,856 | |||||||
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 | 18,396 | 36,080 | |||||||
Recurring [Member] | Individual name issuer trust preferred debt securities | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Available for sale securities | 25,684 | 25,138 | |||||||
Recurring [Member] | Corporate bonds [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Available for sale securities | 2,005 | 1,955 | |||||||
Recurring [Member] | Level 1 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Mortgage loans held for sale, measured at 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 | |||||||||
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, measured at fair value | 45,162 | 33,969 | |||||||
Total assets at fair value on a recurring basis | 634,265 | 418,503 | |||||||
Total liabilities at fair value on a recurring basis | 26,800 | 10,347 | |||||||
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 | 75,484 | 77,015 | |||||||
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 | 442,687 | 234,856 | |||||||
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 | 18,396 | 36,080 | |||||||
Recurring [Member] | Level 2 [Member] | Individual name issuer trust preferred debt securities | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Available for sale securities | 25,684 | 25,138 | |||||||
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 | 2,005 | 1,955 | |||||||
Recurring [Member] | Level 3 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Mortgage loans held for sale, measured at fair value | 0 | 0 | |||||||
Total assets at fair value on a recurring basis | 0 | 0 | |||||||
Total liabilities at fair value on a recurring basis | 2,047 | 2,945 | |||||||
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 | |||||||||
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 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. |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Change in Contingent Consideration) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance at beginning of period | $ 2,986 | $ 0 | $ 2,945 | [1] | $ 0 | |
Initial recognition | 0 | 2,904 | 0 | 2,904 | ||
Change in fair value of contingent consideration | (939) | 16 | (898) | 16 | ||
Payments | 0 | 0 | 0 | 0 | ||
Balance at end of period | $ 2,047 | [1] | $ 2,920 | $ 2,047 | [1] | $ 2,920 |
[1] | The contingent consideration liability is included in other liabilities in the Consolidated Balance Sheets. |
Fair Value Measurements (Asset
Fair Value Measurements (Asset and Liabilities Measured on a Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | [1] | $ 9,187 | $ 17,138 |
Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 5,726 | 10,545 | |
Loan servicing rights | 3,314 | ||
Property acquired through foreclosure or repossession | 575 | 270 | |
Total assets at fair value on a nonrecurring basis | 9,615 | 10,815 | |
Nonrecurring [Member] | Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 0 | 0 | |
Loan servicing rights | 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 | |
Loan servicing rights | 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 | 5,726 | 10,545 | |
Loan servicing rights | 3,314 | ||
Property acquired through foreclosure or repossession | 575 | 270 | |
Total assets at fair value on a nonrecurring basis | $ 9,615 | $ 10,815 | |
[1] | The recorded investment in impaired loans consists of unpaid principal balance, net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs. For impaired accruing loans (troubled debt restructurings for which management has concluded that the collectibility of the loan is not in doubt), the recorded investment also includes accrued interest. |
Fair Value Measurements (Qualit
Fair Value Measurements (Qualitative Information About Level 3 Assets Measured at Fair Value on a Nonrecurring Basis) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Collateral dependent impaired loans | [1] | $ 9,187 | $ 17,138 |
Nonrecurring [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Collateral dependent impaired loans | 5,726 | 10,545 | |
Loan servicing rights | 3,314 | ||
Property acquired through foreclosure or repossession | 575 | 270 | |
Nonrecurring [Member] | Level 3 [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Collateral dependent impaired loans | 5,726 | 10,545 | |
Loan servicing rights | 3,314 | ||
Property acquired through foreclosure or repossession | $ 575 | $ 270 | |
Nonrecurring [Member] | Minimum [Member] | Collateral Dependent Impaired Loans [Member] | Appraisals Of Collateral [Member] | Level 3 [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount for costs to sell | 0.00% | 0.00% | |
Appraisal adjustments | [2] | ||
Nonrecurring [Member] | Minimum [Member] | Loan Servicing Rights [Member] | Discounted Cash Flow [Member] | Level 3 [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rates | 10.00% | ||
Prepayment rates | 13.00% | ||
Nonrecurring [Member] | Minimum [Member] | Property Acquired Through Foreclosure Or Repossession [Member] | Appraisals Of Collateral [Member] | Level 3 [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount for costs to sell | 10.00% | 12.00% | |
Appraisal adjustments | [2] | 6.00% | 32.00% |
Nonrecurring [Member] | Maximum [Member] | Collateral Dependent Impaired Loans [Member] | Appraisals Of Collateral [Member] | Level 3 [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount for costs to sell | 20.00% | 20.00% | |
Appraisal adjustments | [2] | 15.00% | |
Nonrecurring [Member] | Maximum [Member] | Loan Servicing Rights [Member] | Discounted Cash Flow [Member] | Level 3 [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rates | 14.00% | ||
Prepayment rates | 24.00% | ||
Nonrecurring [Member] | Maximum [Member] | Property Acquired Through Foreclosure Or Repossession [Member] | Appraisals Of Collateral [Member] | Level 3 [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount for costs to sell | 10.00% | 12.00% | |
Appraisal adjustments | [2] | 15.00% | 32.00% |
Nonrecurring [Member] | Weighted Average [Member] | Collateral Dependent Impaired Loans [Member] | Appraisals Of Collateral [Member] | Level 3 [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount for costs to sell | 10.00% | 2.00% | |
Appraisal adjustments | [2] | 14.00% | |
Nonrecurring [Member] | Weighted Average [Member] | Loan Servicing Rights [Member] | Discounted Cash Flow [Member] | Level 3 [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount rates | 11.00% | ||
Prepayment rates | 16.00% | ||
Nonrecurring [Member] | Weighted Average [Member] | Property Acquired Through Foreclosure Or Repossession [Member] | Appraisals Of Collateral [Member] | Level 3 [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discount for costs to sell | 10.00% | 12.00% | |
Appraisal adjustments | [2] | 13.00% | 32.00% |
[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 collectibility of the loan is not in doubt), the recorded investment also includes accrued interest. | ||
[2] | Management may adjust appraisal values to reflect market value declines or other discounts resulting from its knowledge of the property. |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Amounts and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held to maturity securities | $ 16,848 | $ 20,023 |
Loans, net of allowance of loan losses | 3,155,706 | 2,986,058 |
Time deposits | 913,649 | 833,898 |
Federal Home Loan Bank advances | 671,615 | 378,973 |
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 | 16,848 | 20,023 |
Loans, net of allowance of loan losses | 3,155,706 | 2,986,058 |
Time deposits | 913,649 | 833,898 |
Federal Home Loan Bank advances | 671,615 | 378,973 |
Junior subordinated debentures | 22,681 | 22,681 |
Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held to maturity securities | 17,492 | 20,516 |
Loans, net of allowance of loan losses | 3,190,240 | 3,004,782 |
Time deposits | 916,994 | 834,574 |
Federal Home Loan Bank advances | 685,238 | 388,275 |
Junior subordinated debentures | 16,732 | 16,468 |
Fair Value Measurement [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held to maturity securities | 0 | 0 |
Loans, net of allowance of loan losses | 0 | 0 |
Time deposits | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Junior subordinated debentures | 0 | 0 |
Fair Value Measurement [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held to maturity securities | 17,492 | 20,516 |
Loans, net of allowance of loan losses | 0 | 0 |
Time deposits | 916,994 | 834,574 |
Federal Home Loan Bank advances | 685,238 | 388,275 |
Junior subordinated debentures | 16,732 | 16,468 |
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 | 3,190,240 | 3,004,782 |
Time deposits | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Junior subordinated debentures | $ 0 | $ 0 |
Defined Benefit Pension Plans71
Defined Benefit Pension Plans (Narrative) (Details) | 120 Months Ended |
Dec. 30, 2023 | |
Scenario, Forecast [Member] | |
Transition Period Pension Plan Amendment | 10 years |
Defined Benefit Pension Plans72
Defined Benefit Pension Plans (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Qualified Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 537 | $ 615 | $ 1,611 | $ 1,844 |
Interest cost | 644 | 731 | 1,932 | 2,195 |
Expected return on plan assets | (1,158) | (1,129) | (3,475) | (3,386) |
Amortization of prior service (credit) cost | (6) | (6) | (17) | (17) |
Recognized net actuarial loss | 207 | 313 | 621 | 937 |
Net periodic benefit cost | 224 | 524 | 672 | 1,573 |
Non-Qualified Retirement Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 30 | 20 | 91 | 59 |
Interest cost | 108 | 122 | 324 | 367 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service (credit) cost | 0 | 0 | 0 | 0 |
Recognized net actuarial loss | 62 | 61 | 185 | 183 |
Net periodic benefit cost | $ 200 | $ 203 | $ 600 | $ 609 |
Defined Benefit Pension Plans73
Defined Benefit Pension Plans (Weighted-Average Assumptions Used) (Details) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Qualified Pension Plan [Member] | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate | 4.125% | |
Equivalent single discount rate for benefit obligations | 4.48% | |
Equivalent single discount rate for service cost | 4.63% | |
Equivalent single discount rate for interest cost | 3.88% | |
Expected long-term return on plan assets | 6.75% | 7.25% |
Rate of compensation increase | 3.75% | 3.75% |
Non-Qualified Retirement Plans [Member] | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate | 3.90% | |
Equivalent single discount rate for benefit obligations | 4.19% | |
Equivalent single discount rate for service cost | 4.59% | |
Equivalent single discount rate for interest cost | 3.44% | |
Rate of compensation increase | 3.75% | 3.75% |
Share-Based Compensation Arra74
Share-Based Compensation Arrangements (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Performance Based Nonvested Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
Grant date fair value | $ / shares | $ 36.11 |
Performance share awards, shares vesting percentage | 140.00% |
Performance share awards, shares vesting | shares | 47,533 |
Performance share awards, minimum target percentage | 0.00% |
Performance share awards, maximum target percentage | 200.00% |
Time Based Nonvested Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
Grant date fair value | $ / shares | $ 36.10 |
Nonvested share units granted in period | shares | 8,400 |
Business Segments (Statement of
Business Segments (Statement of Operations and Total Assets by Reportable Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |||||
Segment Reporting Information [Line Items] | |||||||||
Net interest income (expense) | $ 27,379 | $ 25,997 | $ 81,890 | $ 77,727 | |||||
Provision for loan losses | 1,800 | 200 | 2,750 | 300 | |||||
Net interest income after provision for loan losses | 25,579 | 25,797 | 79,140 | 77,427 | |||||
Noninterest income | 17,261 | 13,913 | 47,809 | 43,194 | |||||
Depreciation and amortization expense | 1,268 | 1,080 | 3,703 | 3,106 | |||||
Other noninterest expenses related to segments | 23,382 | 23,458 | 72,427 | 69,262 | |||||
Total noninterest expense | 24,650 | 24,538 | 76,130 | 72,368 | |||||
Income before income taxes | 18,190 | 15,172 | 50,819 | 48,253 | |||||
Income tax expense | 5,863 | 4,964 | 16,500 | 15,532 | |||||
Net income | 12,327 | 10,208 | 34,319 | 32,721 | |||||
Total assets | 4,204,034 | 3,674,836 | 4,204,034 | 3,674,836 | $ 3,771,604 | ||||
Expenditures for long-lived assets | 762 | 1,118 | 2,608 | 3,220 | |||||
Change in fair value of contingent consideration | (939) | 16 | (898) | 16 | |||||
Acquisition related expenses | 0 | 504 | 0 | 937 | |||||
Commercial Banking [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net interest income (expense) | 22,860 | 21,278 | 67,414 | 63,115 | |||||
Provision for loan losses | 1,800 | 200 | 2,750 | 300 | |||||
Net interest income after provision for loan losses | 21,060 | 21,078 | 64,664 | 62,815 | |||||
Noninterest income | 7,101 | 4,498 | 17,331 | 15,164 | |||||
Depreciation and amortization expense | 709 | 626 | 2,093 | 1,936 | |||||
Other noninterest expenses related to segments | 14,759 | 13,805 | 43,788 | 41,259 | |||||
Total noninterest expense | 15,468 | 14,431 | 45,881 | 43,195 | |||||
Income before income taxes | 12,693 | 11,145 | 36,114 | 34,784 | |||||
Income tax expense | 4,392 | 3,747 | 12,336 | 10,878 | |||||
Net income | 8,301 | 7,398 | 23,778 | 23,906 | |||||
Total assets | 3,617,967 | 3,074,611 | 3,617,967 | 3,074,611 | |||||
Expenditures for long-lived assets | 424 | 1,006 | 1,779 | 2,774 | |||||
Wealth Management Services [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net interest income (expense) | (11) | (15) | (46) | (38) | |||||
Provision for loan losses | 0 | 0 | 0 | 0 | |||||
Net interest income after provision for loan losses | (11) | (15) | (46) | (38) | |||||
Noninterest income | 9,623 | 8,902 | 28,278 | 26,249 | |||||
Depreciation and amortization expense | 501 | 404 | 1,440 | 1,009 | |||||
Other noninterest expenses related to segments | 5,584 | [1] | 6,820 | [1] | 19,084 | [2] | 19,200 | [2] | |
Total noninterest expense | 6,085 | 7,224 | 20,524 | 20,209 | |||||
Income before income taxes | 3,527 | 1,663 | 7,708 | 6,002 | |||||
Income tax expense | 1,261 | 688 | 2,788 | 2,682 | |||||
Net income | 2,266 | 975 | 4,920 | 3,320 | |||||
Total assets | 53,236 | 62,461 | 53,236 | 62,461 | |||||
Expenditures for long-lived assets | 280 | 51 | 468 | 252 | |||||
Corporate [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net interest income (expense) | 4,530 | 4,734 | 14,522 | 14,650 | |||||
Provision for loan losses | 0 | 0 | 0 | 0 | |||||
Net interest income after provision for loan losses | 4,530 | 4,734 | 14,522 | 14,650 | |||||
Noninterest income | 537 | 513 | 2,200 | 1,781 | |||||
Depreciation and amortization expense | 58 | 50 | 170 | 161 | |||||
Other noninterest expenses related to segments | 3,039 | 2,833 | 9,555 | 8,803 | |||||
Total noninterest expense | 3,097 | 2,883 | 9,725 | 8,964 | |||||
Income before income taxes | 1,970 | 2,364 | 6,997 | 7,467 | |||||
Income tax expense | 210 | 529 | 1,376 | 1,972 | |||||
Net income | 1,760 | 1,835 | 5,621 | 5,495 | |||||
Total assets | 532,831 | 537,764 | 532,831 | 537,764 | |||||
Expenditures for long-lived assets | $ 58 | $ 61 | $ 361 | $ 194 | |||||
[1] | Other noninterest expenses for the Wealth Management Services segment includes a $939 thousand benefit resulting from the reduction of a contingent consideration liability in the three months ended September 30, 2016 and $504 thousand of acquisition related expenses in the three months ended September 30, 2015. | ||||||||
[2] | Other noninterest expenses for the Wealth Management Services segment includes a $898 thousand benefit resulting from the reduction of a contingent consideration liability in the nine months ended September 30, 2016 and $937 thousand of acquisition related expenses in the nine months ended September 30, 2015. |
Other Comprehensive Income (L76
Other Comprehensive Income (Loss) (Activity in Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||||
Net change in fair value of securities available for sale, before tax | $ (144) | $ 543 | $ 2,621 | $ (1,018) | |
Net change in fair value of securities available for sale, tax | (53) | 199 | 970 | (325) | |
Net change in fair value of securities available for sale | (91) | 344 | 1,651 | (693) | |
Change in fair value of cash flow hedges, before tax | (15) | (15) | (129) | (21) | |
Change in fair value of cash flow hedges, tax | (11) | (14) | (35) | (11) | |
Change in fair value of cash flow hedges | (4) | (1) | (94) | (10) | |
Net cash flow hedge losses reclassified into earnings, before tax | [1] | 0 | 132 | 0 | 418 |
Net cash flow hedge losses reclassified into earnings, tax | [1] | 0 | 50 | 0 | 153 |
Net cash flow hedge losses reclassified into earnings | [1] | 0 | 82 | 0 | 265 |
Net change in fair value of cash flow hedges, before tax | (15) | 117 | (129) | 397 | |
Net change in fair value of cash flow hedges, tax | (11) | 36 | (35) | 142 | |
Net change in fair value of cash flow hedges | (4) | 81 | (94) | 255 | |
Defined benefit plan obligation adjustment, before tax | [2] | 263 | 367 | 789 | 1,102 |
Defined benefit plan obligation adjustment, tax | [2] | 97 | 134 | 292 | 280 |
Defined benefit plan obligation adjustment, net of tax | [2] | 166 | 233 | 497 | 822 |
Total other comprehensive income (loss), before tax | 104 | 1,027 | 3,281 | 481 | |
Total other comprehensive income (loss), tax | 33 | 369 | 1,227 | 97 | |
Total other comprehensive income (loss), net of tax | $ 71 | $ 658 | $ 2,054 | $ 384 | |
[1] | Included in interest expense on junior subordinated debentures in the Consolidated Statements of Income. | ||||
[2] | Included in salaries and employee benefits expense in the Consolidated Statements of Income. |
Other Comprehensive Income (L77
Other Comprehensive Income (Loss) (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated other comprehensive income (loss), beginning balance | $ (9,699) | $ (8,809) | ||
Other comprehensive income (loss) before reclassifications | 1,557 | (703) | ||
Amounts reclassed from accumulated other comprehensive income | 497 | 1,087 | ||
Total other comprehensive income (loss), net of tax | $ 71 | $ 658 | 2,054 | 384 |
Accumulated other comprehensive income (loss), ending balance | (7,645) | (8,425) | (7,645) | (8,425) |
Net Unrealized Gains on AFS Securities [Member] | ||||
Accumulated other comprehensive income (loss), beginning balance | 1,051 | 4,222 | ||
Other comprehensive income (loss) before reclassifications | 1,651 | (693) | ||
Amounts reclassed from accumulated other comprehensive income | 0 | 0 | ||
Total other comprehensive income (loss), net of tax | 1,651 | (693) | ||
Accumulated other comprehensive income (loss), ending balance | 2,702 | 3,529 | 2,702 | 3,529 |
Net Unrealized Losses on Cash Flow Hedges [Member] | ||||
Accumulated other comprehensive income (loss), beginning balance | (43) | (287) | ||
Other comprehensive income (loss) before reclassifications | (94) | (10) | ||
Amounts reclassed from accumulated other comprehensive income | 0 | 265 | ||
Total other comprehensive income (loss), net of tax | (94) | 255 | ||
Accumulated other comprehensive income (loss), ending balance | (137) | (32) | (137) | (32) |
Pension Benefit Adjustment [Member] | ||||
Accumulated other comprehensive income (loss), beginning balance | (10,707) | (12,744) | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Amounts reclassed from accumulated other comprehensive income | 497 | 822 | ||
Total other comprehensive income (loss), net of tax | 497 | 822 | ||
Accumulated other comprehensive income (loss), ending balance | $ (10,210) | $ (11,922) | $ (10,210) | $ (11,922) |
Earning Per Common Share (Calcu
Earning Per Common Share (Calculation of Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 12,327 | $ 10,208 | $ 34,319 | $ 32,721 |
Less dividends and undistributed earnings allocated to participating securities | (25) | (27) | (72) | (100) |
Net income applicable to common shareholders | $ 12,302 | $ 10,181 | $ 34,247 | $ 32,621 |
Weighted average common shares outstanding - basic | 17,090,000 | 16,939,000 | 17,060,000 | 16,837,000 |
Basic earnings per common share | $ 0.72 | $ 0.60 | $ 2.01 | $ 1.94 |
Less dividends and undistributed earnings allocated to participating securities | $ (25) | $ (28) | $ (72) | $ (100) |
Net income available to common shareholders | $ 12,302 | $ 10,180 | $ 34,247 | $ 32,621 |
Dilutive effect of common stock equivalents | 113,000 | 163,000 | 138,000 | 190,000 |
Weighted average common shares outstanding - diluted | 17,203,000 | 17,102,000 | 17,198,000 | 17,027,000 |
Diluted earnings per common share | $ 0.72 | $ 0.60 | $ 1.99 | $ 1.92 |
Antidilutive common stock equivalents | 46,800 | 28,342 | 48,718 | 25,788 |
Commitments and Contingencies79
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Line Items] | |||||
Operating leases rental expense | $ 1,000 | $ 875 | $ 3,000 | $ 2,500 | |
Minimum [Member] | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Lease expiration period | 1 month | ||||
Lease expiration period, renewal option | 12 months | ||||
Maximum [Member] | |||||
Commitments and Contingencies Disclosure [Line Items] | |||||
Lease expiration period | 24 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 | $ 5,648 | $ 5,648 | $ 5,629 |
Commitments and Contingencies80
Commitments and Contingencies (Financial Instruments with Off Balance Sheet Risk) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Interest Rate Commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | $ 112,083 | $ 49,712 |
Commitments to sell mortgage loans [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | 155,901 | 87,498 |
Interest rate swaps with customers [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | 446,268 | 302,142 |
Mirror swaps with counterparties [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | 446,268 | 302,142 |
Risk participation-in agreement [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | 21,474 | 21,474 |
Commitments to extend credit on commerical loans [Member] | Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract amount | 374,689 | 360,795 |
Commitments to extend credit on home equity lines [Member] | Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract amount | 227,656 | 219,427 |
Commitments to extend credit on other loans [Member] | Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract amount | 50,670 | 44,164 |
Commitments to extend credit on standby letters of credit [Member] | Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract amount | 5,648 | 5,629 |
Not Designated as Hedging Instrument [Member] | Interest rate swaps with customers [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | 446,300 | 302,100 |
Not Designated as Hedging Instrument [Member] | Mirror swaps with counterparties [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | 446,268 | 302,142 |
Not Designated as Hedging Instrument [Member] | Risk participation-in agreement [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional Amount | $ 21,500 | $ 21,500 |
Commitments and Contingencies81
Commitments and Contingencies (Schedule of Future Minimum Operating Lease Payments) (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Operating Leases, Future Minimum Payments Due Through End of Current Year | $ 880 |
Operating Leases, Future Minimum Payments, Due in Two Years | 3,478 |
Operating Leases, Future Minimum Payments, Due in Three Years | 3,200 |
Operating Leases, Future Minimum Payments, Due in Four Years | 2,923 |
Operating Leases, Future Minimum Payments, Due in Five Years | 2,262 |
Operating Leases, Future Minimum Payments, Due Thereafter | 28,167 |
Operating Leases, Future Minimum Payments Due | $ 40,910 |