DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Washington Trust Bancorp Inc | |
Entity Central Index Key | 0000737468 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 17,324,699 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | ||
Assets: | ||||
Cash and due from banks | $ 88,242 | $ 89,923 | ||
Short-term investments | 3,317 | 3,552 | ||
Mortgage loans held for sale | 14,608 | 20,996 | ||
Securities: | ||||
Available for sale debt securities, at fair value | 994,881 | 927,810 | ||
Held to maturity debt securities, at amortized cost | 0 | 10,415 | ||
Total securities | 994,881 | 938,225 | ||
Federal Home Loan Bank stock, at cost | 48,025 | 46,068 | ||
Loans: | ||||
Total loans | [1] | 3,738,469 | 3,680,360 | |
Less allowance for loan losses | 27,644 | 27,072 | ||
Net loans | 3,710,825 | 3,653,288 | ||
Premises and equipment, net | 29,822 | 29,005 | ||
Operating lease right-of-use assets | 28,249 | 0 | ||
Investment in bank-owned life insurance | 80,786 | 80,463 | ||
Goodwill | 63,909 | 63,909 | ||
Identifiable intangible assets, net | 7,923 | 8,162 | ||
Other assets | 84,142 | 77,175 | ||
Total assets | 5,154,729 | 5,010,766 | ||
Liabilities: | ||||
Noninterest-bearing deposits | 577,319 | 603,216 | ||
Interest-bearing deposits | 2,926,941 | 2,920,832 | ||
Total deposits | 3,504,260 | 3,524,048 | ||
Federal Home Loan Bank advances | 1,056,129 | 950,722 | ||
Junior subordinated debentures | 22,681 | 22,681 | ||
Operating lease liabilities | 30,187 | [2] | 0 | |
Other liabilities | 71,629 | 65,131 | ||
Total liabilities | 4,684,886 | 4,562,582 | ||
Commitments and contingencies (Note 18) | ||||
Shareholders' Equity: | ||||
Common stock | 1,082 | 1,081 | ||
Paid-in capital | 120,743 | 119,888 | ||
Retained earnings | 365,521 | 355,524 | ||
Unrealized losses on held to maturity securities, net of tax | (17,503) | (28,309) | ||
Total shareholders' equity | 469,843 | 448,184 | ||
Total liabilities and shareholders’ equity | $ 5,154,729 | $ 5,010,766 | ||
[1] | Includes net unamortized loan origination costs of $4.9 million and $4.7 million, respectively, at March 31, 2019 and December 31, 2018 and net unamortized premiums on purchased loans of $668 thousand and $703 thousand, respectively, at March 31, 2019 and December 31, 2018. | |||
[2] | Includes short-term operating lease liabilities of $2.5 million. |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Held to maturity debt securities, fair value | $ 0 | $ 10,316 |
Common stock, par value | $ 0.0625 | $ 0.0625 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 17,305,279 | 17,302,037 |
Common stock, shares outstanding | 17,305,279 | 17,302,037 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest income: | ||
Interest and fees on loans | $ 41,744 | $ 34,352 |
Interest and Fee Income, Loans Held-for-sale, Mortgages | 180 | 226 |
Taxable interest on securities | 7,226 | 5,118 |
Nontaxable interest on securities | 9 | 23 |
Dividends on Federal Home Loan Bank stock | 695 | 516 |
Other interest income | 340 | 205 |
Total interest and dividend income | 50,194 | 40,440 |
Interest expense: | ||
Deposits | 8,696 | 4,422 |
Federal Home Loan Bank advances | 6,661 | 3,983 |
Junior subordinated debentures | 253 | 183 |
Total interest expense | 15,610 | 8,588 |
Net interest income | 34,584 | 31,852 |
Provision for loan losses | 650 | 0 |
Net interest income after provision for loan losses | 33,934 | 31,852 |
Noninterest income: | ||
Wealth management revenues | 9,252 | 10,273 |
Mortgage banking revenues | 2,646 | 2,838 |
Card interchange fees | 997 | 847 |
Service charges on deposit accounts | 875 | 863 |
Loan related derivative income | 724 | 141 |
Income from bank-owned life insurance | 649 | 515 |
Other income | 224 | 266 |
Total noninterest income | 15,367 | 15,743 |
Noninterest expense: | ||
Salaries and employee benefits | 17,619 | 17,772 |
Outsourced services | 2,606 | 1,873 |
Net occupancy | 1,998 | 2,002 |
Equipment | 1,011 | 1,180 |
Legal, audit and professional fees | 534 | 726 |
FDIC deposit insurance costs | 429 | 404 |
Advertising and promotion | 239 | 177 |
Amortization of intangibles | 239 | 248 |
Other expenses | 2,289 | 2,748 |
Total noninterest expense | 26,964 | 27,130 |
Income before income taxes | 22,337 | 20,465 |
Income tax expense | 4,842 | 4,254 |
Net income | 17,495 | 16,211 |
Net income applicable to common shareholders | $ 17,461 | $ 16,173 |
Weighted average common shares outstanding - basic | 17,304 | 17,234 |
Weighted average common shares outstanding - diluted | 17,401 | 17,345 |
Per share information: | ||
Basic earnings per common share | $ 1.01 | $ 0.94 |
Diluted earnings per common share | 1 | 0.93 |
Cash dividends declared per share | $ 0.47 | $ 0.43 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 17,495 | $ 16,211 |
Other comprehensive income (loss), net of tax: | ||
Net change in fair value of available for sale debt securities | 11,021 | (10,414) |
Net change in fair value of cash flow hedges | (442) | 889 |
Net change in defined benefit plan obligations | 227 | 360 |
Total other comprehensive income (loss), net of tax | 10,806 | (9,165) |
Total comprehensive income | $ 28,301 | $ 7,046 |
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, 2017 | 17,227,000 | ||||
Shareholders' Equity, Beginning Balance at Dec. 31, 2017 | $ 413,284 | $ 1,077 | $ 117,961 | $ 317,756 | $ (23,510) |
Net income | 16,211 | 16,211 | |||
Total other comprehensive income (loss), net of tax | (9,165) | (9,165) | |||
Cash dividends declared | (7,462) | (7,462) | |||
Share-based compensation | 669 | 669 | |||
Exercise of stock options and issuance of other compensation-related equity awards, shares | 35,000 | ||||
Exercise of stock options and issuance of other compensation-related equity awards, value | (456) | $ 2 | (458) | ||
Common Stock, Shares Outstanding, Ending Balance at Mar. 31, 2018 | 17,262,000 | ||||
Shareholders' Equity, Ending Balance at Mar. 31, 2018 | $ 413,081 | $ 1,079 | 118,172 | 326,505 | (32,675) |
Common Stock, Shares Outstanding, Beginning Balance at Dec. 31, 2018 | 17,302,037 | 17,302,000 | |||
Shareholders' Equity, Beginning Balance at Dec. 31, 2018 | $ 448,184 | $ 1,081 | 119,888 | 355,524 | (28,309) |
Net income | 17,495 | 17,495 | |||
Total other comprehensive income (loss), net of tax | 10,806 | 10,806 | |||
Cash dividends declared | (8,220) | (8,220) | |||
Share-based compensation | 740 | 740 | |||
Exercise of stock options and issuance of other compensation-related equity awards, shares | 3,000 | ||||
Exercise of stock options and issuance of other compensation-related equity awards, value | $ 116 | $ 1 | 115 | ||
Common Stock, Shares Outstanding, Ending Balance at Mar. 31, 2019 | 17,305,279 | 17,305,000 | |||
Shareholders' Equity, Ending Balance at Mar. 31, 2019 | $ 469,843 | $ 1,082 | $ 120,743 | 365,521 | $ (17,503) |
Cumulative effect of change in accounting principle | $ 722 | $ 722 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 17,495 | $ 16,211 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 650 | 0 |
Depreciation of premises and equipment | 838 | 827 |
Net amortization of premium and discount | 822 | 695 |
Amortization of intangibles | 239 | 248 |
Share-based compensation | 740 | 669 |
Tax benefit from stock option exercises and other equity awards | 7 | 207 |
Income from bank-owned life insurance | (649) | (515) |
Net gains on loan sales and commissions on loans originated for others, including fair value adjustments | (2,474) | (2,679) |
Proceeds from sales of loans | 51,673 | 89,575 |
Loans originated for sale | (46,864) | (79,212) |
(Increase) decrease in operating lease right-of-use assets | 673 | 0 |
Increase (decrease) in operating lease liabilities | (666) | 0 |
(Increase) decrease in other assets | (11,022) | (10,973) |
Increase (decrease) in other liabilities | 9,532 | 6,483 |
Net cash provided by (used in) operating activities | 20,994 | 21,536 |
Cash flows from investing activities: | ||
Purchases of mortgage-backed securities available for sale | (62,109) | (40,657) |
Purchases of other investment securities available for sale | (10,507) | (1,064) |
Maturities and principal payments of mortgage-backed securities available for sale | 19,718 | 20,100 |
Maturities and principal payments of other investment securities available for sale | 10,000 | 500 |
Maturities and principal payments of mortgage-backed securities held to maturity | 0 | 540 |
Remittance (purchases) of Federal Home Loan Bank stock | (1,957) | (610) |
Net (increase) decrease in loans | (54,147) | (15,571) |
Purchases of loans | (161) | (1,520) |
Purchases of premises and equipment | (1,655) | (811) |
Proceeds from surrender of bank-owned life insurance | 326 | 0 |
Net cash provided by (used in) investing activities | (100,492) | (39,093) |
Cash flows from financing activities: | ||
Net increase (decrease) in deposits | (19,788) | 13,727 |
Proceeds from Federal Home Loan Bank advances | 532,000 | 515,000 |
Repayment of Federal Home Loan Bank advances | (426,593) | (497,679) |
Payment of contingent consideration liability | 0 | (1,217) |
Net proceeds from stock option exercises and issuance of other equity awards | 116 | (456) |
Cash dividends paid | (8,153) | (6,739) |
Net cash provided by (used in) financing activities | 77,582 | 22,636 |
Net increase (decrease) in cash and cash equivalents | (1,916) | 5,079 |
Cash and cash equivalents at beginning of period | 93,475 | 82,923 |
Cash and cash equivalents at end of period | 91,559 | 88,002 |
Noncash Investing and Financing Activities: | ||
Loans charged off | 103 | 690 |
Loans transferred to property acquired through foreclosure or repossession | 0 | 3,074 |
Operating lease right-of-use assets | 28,923 | 0 |
Operating lease liabilities | 30,853 | 0 |
Fair value of debt securities transferred from held-to-maturity to available for sale | 10,316 | 0 |
Supplemental Disclosures: | ||
Interest payments | 14,082 | 8,047 |
Income tax payments | $ 1,136 | $ 908 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General Information | Basis of Presentation Washington Trust Bancorp, Inc. (the “Bancorp”) is a publicly-owned registered bank holding company that has elected to be a financial holding company. The Bancorp’s subsidiaries include The Washington Trust Company, of Westerly (the “Bank”), a Rhode Island chartered commercial bank founded in 1800, and Weston Securities Corporation (“WSC”). 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; its automated teller machines (“ATMs”); telephone banking; mobile banking and its internet website (www.washtrust.com). The Unaudited Consolidated Financial Statements include the accounts of the Bancorp and its subsidiaries (collectively the “Corporation” or “Washington Trust”). All intercompany balances and transactions have been eliminated. Certain previously reported amounts have been reclassified to conform to current year’s presentation. The Bancorp also owns the common stock of two capital trusts, which have issued trust preferred securities. These capital trusts are variable interest entities in which the Bancorp is not the primary beneficiary and, therefore, are not consolidated. The capital trust’s only assets are junior subordinated debentures issued by the Bancorp, which were acquired by the capital trusts using the proceeds from the issuance of the trust preferred securities and common stock. The Bancorp’s equity interest in the capital trusts, classified in other assets, and the junior subordinated debentures are included in the Unaudited Consolidated Balance Sheets. Interest expense on the junior subordinated debentures is included in the Unaudited Consolidated Statements of Income. 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 Unaudited Consolidated Financial Statements have been included. Interim results are not necessarily indicative 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, 2018 . |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Accounting Standards Adopted in 2019 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 depends on its classification as a finance or operating lease. ASU 2016-02 requires a modified retrospective transition, with a package of practical expedients that entities may elect to apply. In January 2018, Accounting Standards Update No. 2018-01, “Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842” was issued to address concerns about the costs and complexity of complying with the transition provisions of ASU 2016-02. In July 2018, Accounting Standards Update No. 2018-10, “Codification Improvements to Topic 842, Leases” was issued to provide more detailed guidance and additional clarification for implementing ASU 2016-02. Also in July 2018, Accounting Standards Update No. 2018-11, “Targeted Improvements” (“ASU 2018-11”) was issued and allows for an optional transition method in which the provisions of Topic 842 would be applied upon the adoption date and would not have to be retroactively applied to the earliest reporting period presented in the consolidated financial statements. The Corporation used this optional transition method for the adoption of Topic 842. In December 2018, Accounting Standards Update No. 2018-20, “Leases (Topic 842) Narrow-Scope Improvement for Lessors” was issued to address lessors’ concerns about sales taxes and other similar taxes collected from lessees, certain lessor costs, and recognition of variable payments for contracts with lease and non-lease components. These ASUs were effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Management assembled a project team to address the changes pursuant to Topic 842. The project team identified and reviewed all lease agreements in scope of Topic 842. The Corporation rents premises used in business operations under non-cancelable operating leases, which as of December 31, 2018 were not reflected in its Consolidated Balance Sheets. The Corporation has no finance leases. The Corporation adopted Topic 842 “Leases” effective January 1, 2019 and has applied the guidance to all operating leases within the scope of Topic 842 at that date. The Corporation elected to adopt the package of practical expedients, which among other things, does not require reassessment of lease classification. The Corporation recognized $28.9 million in operating lease right-of-use-assets, $30.9 million in operating lease liabilities, a reduction in rent-related liabilities of $2.9 million , a reduction of net deferred tax assets of $222 thousand and a cumulative effect adjustment (net of taxes) that increased beginning retained earnings by $722 thousand in the Consolidated Balance Sheets. The cumulative effect adjustment represented the recognition of unamortized deferred gains associated with two leases. There was no change to the timing in recognition of operating lease rent expense on the Corporation’s consolidated financial statements associated with our leases. In March 2019, Accounting Standards Update No. 2019-01, “Leases (Topic 842) Codification Improvements” (“ASU 2019-01”) was issued to address lessors’ concerns about determining fair value of underlying leased assets and presentation issues in the statement of cash flows for sales-type and direct financing leases. ASU 2019-01 also clarified for both lessees and lessors that transition disclosures related to Topic 250 were not required for annual periods are also not required for interim periods. ASU 2019-01 was effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019, with early adoption permitted. The Corporation early adopted this ASU 2019-01 effective January 1, 2019 and it did not have a material impact on the Corporation’s consolidated financial statements. Derivatives and Hedging - Topic 815 Accounting Standards Update No. 2017-12, “Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”), was issued in August 2017 to better align financial reporting for hedging activities with the economic objectives of those activities. ASU 2017-12 was effective for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. In addition, ASU 2017-12 also permitted the reclassification of eligible securities from the held-to-maturity classification to the available for sale classification. The Corporation adopted the provisions of ASU 2017-12 on January 1, 2019 using a modified retrospective transition method. As permitted by ASU 2017-12, qualifying debt securities classified as held to maturity with an amortized cost of $10.4 million and a fair value of $10.3 million were reclassified to available for sale upon the adoption date. An unrealized loss of $75 thousand (net of taxes) was recognized in the accumulated other comprehensive income component of shareholders’ equity at the date of adoption. The adoption of ASU 2017-12 did not have a material impact on the Corporation’s consolidated financial statements. Accounting Standards Update No. 2018-16, “Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes” (“ASU 2018-16”), was issued in October 2018 to permit the use of the Overnight Index Swap rate based on the Secured Overnight Financing Rate as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to existing benchmark interest rates that are currently used for hedge accounting. ASU 2018-16 was effective for fiscal years beginning after December 15, 2018, and interim periods with those fiscal years. The provisions required prospective application for qualifying new or re-designated hedging relationships entered into on or after the date of adoption. The Corporation adopted the provisions of ASU 2018-16 on January 1, 2019 and it did not have a material impact on the Corporation’s consolidated financial statements. Accounting Standards Pending Adoption Financial Instruments - 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, with early adoption permitted in 2019. The Corporation will adopt ASU 2016-03 on January 1, 2020 and is currently evaluating the effect that this ASU will have on the consolidated financial statements and disclosures. Management has assembled a project team that meets regularly to address the additional data requirements necessary, to determine the approach for implementation and to identify new internal controls over enhanced processes that will be put into place for estimating the allowance under ASU 2016-13. This has included assessing the adequacy of existing loan and loss data, as well as developing models for default and loss estimates. The Corporation expects to continue the validation of models, the development of accounting policies and internal controls and the execution of “trial” or “parallel” runs of its ASU 2016-13 compliant methodology throughout 2019. Fair Value Measurement - Topic 820 Accounting Standards Update No. 2018-13, “Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”), was issued in August 2018 to modify the disclosure requirements related to fair value. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted, including adoption in an interim period. Certain provisions under ASU 2018-13 require prospective application, while other provisions require retrospective application to all periods presented in the consolidated financial statements upon adoption. The adoption of ASU 2018-13 is not expected to have a material impact on the Corporation’s consolidated financial statements. Compensation - Retirement Benefits - Topic 715 Accounting Standards Update No. 2018-14, “Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans” (“ASU 2018-14”), was issued in August 2018 to modify the disclosure requirements associated with defined benefit pension plans and other postretirement plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020, with early adoption permitted. The provisions under ASU 2018-14 are required to be applied retrospectively. The adoption of ASU 2018-14 is not expected to have a material impact on the Corporation’s consolidated financial statements. Intangibles - Goodwill and Other - Internal-Use Software - Topic 350 Accounting Standards Update No. 2018-15, “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract” (“ASU 2018-15”), was issued in August 2018 to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with those requirements that currently exist in GAAP for capitalizing implementation costs incurred to develop or obtain internal-use software. Implementation costs would either be capitalized or expensed as incurred depending on the project stage. All costs in the preliminary and post-implementation project stages are expensed as incurred, while certain costs within the application development stage are capitalized. The provisions under ASU 2018-15 can either be applied retrospectively or prospectively. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted, including adoption in an interim period. The adoption of ASU 2018-15 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 | 3 Months Ended |
Mar. 31, 2019 | |
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 $25.7 million at March 31, 2019 and $21.6 million at December 31, 2018 and were included in cash and due from banks in the Unaudited Consolidated Balance Sheets. As of March 31, 2019 and December 31, 2018 , cash and due from banks included interest-bearing deposits in other banks of $38.5 million and $33.7 million , respectively. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The following tables present the amortized cost, gross unrealized holding gains, gross unrealized holding losses and fair value of securities by major security type and class of security: (Dollars in thousands) March 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Available for Sale Debt Securities: Obligations of U.S. government-sponsored enterprises $246,717 $682 ($1,927 ) $245,472 Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 727,511 4,341 (8,347 ) 723,505 Obligations of states and political subdivisions 935 2 — 937 Individual name issuer trust preferred debt securities 13,311 — (941 ) 12,370 Corporate bonds 13,911 9 (1,323 ) 12,597 Total available for sale debt securities $1,002,385 $5,034 ($12,538 ) $994,881 Total securities $1,002,385 $5,034 ($12,538 ) $994,881 (Dollars in thousands) December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Available for Sale Debt Securities: Obligations of U.S. government-sponsored enterprises $246,708 $442 ($4,467 ) $242,683 Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 675,368 1,943 (16,518 ) 660,793 Obligations of states and political subdivisions 935 2 — 937 Individual name issuer trust preferred debt securities 13,307 — (1,535 ) 11,772 Corporate bonds 13,402 — (1,777 ) 11,625 Total available for sale debt securities $949,720 $2,387 ($24,297 ) $927,810 Held to Maturity Debt Securities: Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises $10,415 $— ($99 ) $10,316 Total held to maturity debt securities $10,415 $— ($99 ) $10,316 Total securities $960,135 $2,387 ($24,396 ) $938,126 As discussed in Note 2 , on January 1, 2019, the Corporation adopted ASU 2017-12. As permitted by ASU 2017-12, qualifying debt securities classified as held to maturity with an amortized cost of $10.4 million and a fair value of $10.3 million were reclassified to available for sale upon the adoption date. An unrealized loss of $75 thousand (net of taxes) was recognized in the accumulated other comprehensive income component of shareholders’ equity at the date of adoption. As of March 31, 2019 and December 31, 2018 , debt securities with a fair value of $497.5 million and $439.7 million , respectively, were pledged as collateral for FHLB borrowings, potential borrowings with the FRB, certain public deposits and for other purposes. See Note 7 for additional disclosure on FHLB borrowings. The schedule of maturities of available for sale debt securities 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 March 31, 2019 Amortized Cost Fair Value Due in one year or less $74,364 $73,944 Due after one year to five years 345,082 343,090 Due after five years to ten years 351,603 348,484 Due after ten years 231,336 229,363 Total debt securities $1,002,385 $994,881 Included in the above table are debt securities with an amortized cost balance of $273.4 million and a fair value of $269.8 million at March 31, 2019 that are callable at the discretion of the issuers. Final maturities of the callable securities range from 2 months to 18 years, with call features ranging from 1 month to 4 years. Other-Than-Temporary Impairment Assessment Management assesses whether the decline in fair value of investment securities is other-than-temporary on a regular basis. Unrealized losses on debt securities may occur from current market conditions, increases in interest rates since the time of purchase, a structural change in an investment, volatility of earnings of a specific issuer, or deterioration in credit quality of the issuer. Management evaluates impairments in value both qualitatively and quantitatively to assess whether they are other-than-temporary. The following tables summarize temporarily impaired securities, segregated by length of time the securities have been in a continuous unrealized loss position: (Dollars in thousands) Less than 12 Months 12 Months or Longer Total March 31, 2019 # Fair Unrealized # Fair Value Unrealized Losses # Fair Value Unrealized Losses Obligations of U.S. government-sponsored enterprises — $— $— 14 $139,573 ($1,927 ) 14 $139,573 ($1,927 ) Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises — — — 47 409,374 (8,347 ) 47 409,374 (8,347 ) Individual name issuer trust preferred debt securities — — — 5 12,370 (941 ) 5 12,370 (941 ) Corporate bonds — — — 7 11,874 (1,323 ) 7 11,874 (1,323 ) Total temporarily impaired securities — $— $— 73 $573,191 ($12,538 ) 73 $573,191 ($12,538 ) (Dollars in thousands) Less than 12 Months 12 Months or Longer Total December 31, 2018 # Fair Value Unrealized Losses # Fair Value Unrealized Losses # Fair Value Unrealized Losses Obligations of U.S. government-sponsored enterprises — $— $— 16 $157,032 ($4,467 ) 16 $157,032 ($4,467 ) Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 10 47,060 (439 ) 51 438,701 (16,178 ) 61 485,761 (16,617 ) Individual name issuer trust preferred debt securities — — — 5 11,772 (1,535 ) 5 11,772 (1,535 ) Corporate bonds 3 1,198 (9 ) 5 10,427 (1,768 ) 8 11,625 (1,777 ) Total temporarily impaired securities 13 $48,258 ($448 ) 77 $617,932 ($23,948 ) 90 $666,190 ($24,396 ) Further deterioration in credit quality of the underlying issuers of the securities, deterioration in the condition of the financial services industry, 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. Obligations of U.S. Government Agency and U.S. Government-Sponsored Enterprise Securities, including Mortgage-Backed Securities The gross unrealized losses on U.S. government agency and U.S. government-sponsored debt securities, including mortgage-backed 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. 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 the Corporation will be required to sell these securities before recovery of their cost basis, which may be maturity. Therefore, management does not consider these investments to be other-than-temporarily impaired at March 31, 2019 . Individual Name Issuer Trust Preferred Debt Securities Included in debt securities in an unrealized loss position at March 31, 2019 were five trust preferred securities issued by four individual companies in the banking sector. Management believes the unrealized losses on these holdings were 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 interest and make payments as expected with no payment deferrals or defaults on the part of the issuers. As of March 31, 2019 , individual name issuer trust preferred debt securities with an amortized cost of $6.1 million and unrealized losses of $446 thousand 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 March 31, 2019 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, the Corporation does not intend to sell these securities and it is not more-likely-than-not that the Corporation will be required to sell these securities before recovery of their cost basis, which may be maturity. Therefore, management does not consider these investments to be other-than-temporarily impaired at March 31, 2019 . Corporate Bonds At March 31, 2019 , the Corporation had seven corporate bond holdings with unrealized losses totaling $1.3 million . These investment grade corporate bonds were issued by large corporations, primarily in the financial services industry. Management believes the unrealized losses on these bonds are a function of the changes in the investment spreads and interest rate movements and not changes in the credit quality of the issuers of the debt securities. 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 the Corporation will be required to sell these securities before recovery of their cost basis, which may be maturity. Therefore, management does not consider these investments to be other-than-temporarily impaired at March 31, 2019 . |
Loans
Loans | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Loans | Loans The following is a summary of loans: (Dollars in thousands) March 31, 2019 December 31, 2018 Commercial: Commercial real estate (1) $1,463,682 $1,392,408 Commercial & industrial (2) 610,608 620,704 Total commercial 2,074,290 2,013,112 Residential Real Estate: Residential real estate (3) 1,359,072 1,360,387 Consumer: Home equity 279,938 280,626 Other (4) 25,169 26,235 Total consumer 305,107 306,861 Total loans (5) $3,738,469 $3,680,360 (1) Consists of commercial mortgages primarily secured by income-producing property, as well as construction and development loans. Construction and development loans are made to businesses for land development or the on-site construction of industrial, commercial, or residential buildings. (2) Consists of loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate. (3) Consists of mortgage and homeowner construction loans secured by one- to four-family residential properties. (4) Consists of loans to individuals secured by general aviation aircraft and other personal installment loans. (5) Includes net unamortized loan origination costs of $4.9 million and $4.7 million , respectively, at March 31, 2019 and December 31, 2018 and net unamortized premiums on purchased loans of $668 thousand and $703 thousand , respectively, at March 31, 2019 and December 31, 2018 . As of both March 31, 2019 and December 31, 2018 , loans amounting to $2.0 billion were pledged as collateral to the FHLB under a blanket pledge agreement and to the FRB for the discount window. See Note 7 for additional disclosure regarding borrowings. Past Due Loans Past due status is based on the contractual payment terms of the loan. The following tables present an age analysis of past due loans, segregated by class of loans: (Dollars in thousands) Days Past Due March 31, 2019 30-59 60-89 Over 90 Total Past Due Current Total Loans Commercial: Commercial real estate $— $— $926 $926 $1,462,756 $1,463,682 Commercial & industrial 1 — — 1 610,607 610,608 Total commercial 1 — 926 927 2,073,363 2,074,290 Residential Real Estate: Residential real estate 5,868 2,749 2,232 10,849 1,348,223 1,359,072 Consumer: Home equity 1,851 433 627 2,911 277,027 279,938 Other 13 — — 13 25,156 25,169 Total consumer 1,864 433 627 2,924 302,183 305,107 Total loans $7,733 $3,182 $3,785 $14,700 $3,723,769 $3,738,469 (Dollars in thousands) Days Past Due December 31, 2018 30-59 60-89 Over 90 Total Past Due Current Total Loans Commercial: Commercial real estate $155 $925 $— $1,080 $1,391,328 $1,392,408 Commercial & industrial — — — — 620,704 620,704 Total commercial 155 925 — 1,080 2,012,032 2,013,112 Residential Real Estate: Residential real estate 6,318 2,693 1,509 10,520 1,349,867 1,360,387 Consumer: Home equity 1,281 156 552 1,989 278,637 280,626 Other 33 — — 33 26,202 26,235 Total consumer 1,314 156 552 2,022 304,839 306,861 Total loans $7,787 $3,774 $2,061 $13,622 $3,666,738 $3,680,360 Included in past due loans at both March 31, 2019 and December 31, 2018 were nonaccrual loans of $8.6 million . All loans 90 days or more past due at March 31, 2019 and December 31, 2018 were classified as nonaccrual. Impaired Loans Impaired loans include nonaccrual loans and loans restructured in a troubled debt restructuring. The Corporation identifies loss allocations for impaired loans on an individual loan basis. The following is a summary of impaired loans: (Dollars in thousands) Recorded Investment (1) Unpaid Principal Related Allowance Mar 31, Dec 31, Mar 31, Dec 31, Mar 31, Dec 31, No Related Allowance Recorded Commercial: Commercial real estate $926 $925 $926 $926 $— $— Commercial & industrial 4,645 4,681 4,633 4,732 — — Total commercial 5,571 5,606 5,559 5,658 — — Residential Real Estate: Residential real estate 9,659 9,347 10,010 9,695 — — Consumer: Home equity 1,297 1,360 1,297 1,360 — — Other — — — — — — Total consumer 1,297 1,360 1,297 1,360 — — Subtotal 16,527 16,313 16,866 16,713 — — With Related Allowance Recorded Commercial: Commercial real estate $— $— $— $— $— $— Commercial & industrial — 52 — 73 — — Total commercial — 52 — 73 — — Residential Real Estate: Residential real estate 736 364 762 390 98 100 Consumer: Home equity 111 85 111 85 111 24 Other 21 22 20 22 1 3 Total consumer 132 107 131 107 112 27 Subtotal 868 523 893 570 210 127 Total impaired loans $17,395 $16,836 $17,759 $17,283 $210 $127 Total: Commercial $5,571 $5,658 $5,559 $5,731 $— $— Residential real estate 10,395 9,711 10,772 10,085 98 100 Consumer 1,429 1,467 1,428 1,467 112 27 Total impaired loans $17,395 $16,836 $17,759 $17,283 $210 $127 (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 accruing impaired 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. (Dollars in thousands) Average Recorded Investment Interest Income Recognized Three months ended March 31, 2019 2018 2019 2018 Commercial: Commercial real estate $976 $4,100 $1 $— Commercial & industrial 4,689 5,492 54 66 Total commercial 5,665 9,592 55 66 Residential Real Estate: Residential real estate 10,151 9,850 115 112 Consumer: Home equity 1,480 667 14 9 Other 21 144 — 3 Total consumer 1,501 811 14 12 Totals $17,317 $20,253 $184 $190 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. When loans are placed on nonaccrual status, interest previously accrued but not collected is reversed against current period income. Subsequent interest payments received on nonaccrual loans are applied to the outstanding principal balance of the loan or recognized as interest income depending on management’s assessment of the ultimate collectability of the loan. Loans are removed from nonaccrual status when they have been current as to principal and interest for a period of time, the borrower has demonstrated an ability to comply with repayment terms, and when, in management’s opinion, the loans are considered to be fully collectible. The following is a summary of nonaccrual loans, segregated by class of loans: (Dollars in thousands) Mar 31, Dec 31, Commercial: Commercial real estate $926 $925 Commercial & industrial — — Total commercial 926 925 Residential Real Estate: Residential real estate 10,032 9,346 Consumer: Home equity 1,407 1,436 Other — — Total consumer 1,407 1,436 Total nonaccrual loans $12,365 $11,707 Accruing loans 90 days or more past due $— $— As of March 31, 2019 and December 31, 2018 , loans secured by one- to four-family residential property amounting to $1.7 million and $761 thousand , respectively, were in process of foreclosure. Nonaccrual loans of $3.8 million and $3.1 million , respectively, were current as to the payment of principal and interest at March 31, 2019 and December 31, 2018 . There were no significant commitments to lend additional funds to borrowers whose loans were on nonaccrual status at March 31, 2019 . Troubled Debt Restructurings Loans are considered to be troubled debt restructurings when the Corporation has granted concessions to a borrower due to the borrower’s financial condition that it otherwise would not have considered. These concessions may include modifications of the terms of the debt such as deferral of payments, extension of maturity, reduction of principal balance, reduction of the stated interest rate other than normal market rate adjustments, or a combination of these concessions. Debt may be bifurcated with separate terms for each tranche of the restructured debt. Restructuring of a loan in lieu of aggressively enforcing the collection of the loan may benefit the Corporation by increasing the ultimate probability of collection. Restructured loans are classified as accruing or non-accruing based on management’s assessment of the collectability of the loan. Loans which are already on nonaccrual status at the time of the restructuring generally remain on nonaccrual status for approximately six months before management considers such loans for return to accruing status. Accruing restructured loans are placed into nonaccrual status if and when the borrower fails to comply with the restructured terms and management deems it unlikely that the borrower will return to a status of compliance in the near term. Troubled debt restructurings are reported as such for at least one year from the date of the restructuring. In years after the restructuring, troubled debt restructured loans are removed from this classification if the restructuring did not involve a below-market rate concession and the loan is not deemed to be impaired based on the terms specified in the restructuring agreement. 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 recorded investment in troubled debt restructurings was $5.5 million and $5.6 million , respectively, at March 31, 2019 and December 31, 2018 . The allowance for loan losses included specific reserves for these troubled debt restructurings of $99 thousand and $103 thousand , respectively, at March 31, 2019 and December 31, 2018 . For the three months ended March 31, 2019 , there were no loans modified as a troubled debt restructuring. For the three months ended March 31, 2018 , there was one commercial and industrial loan modified as a troubled debt restructuring with a pre-modification and post-modification recorded investment of $608 thousand . This troubled debt restructuring included a combination of concessions pertaining to maturity and interest only payment terms. For the three months ended March 31, 2019 and 2018 , there were no payment defaults on troubled debt restructured loans modified within the previous 12 months. As of March 31, 2019 , there were no significant commitments to lend additional funds to borrowers whose loans had been restructured. 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. For non-impaired loans, the Corporation takes the risk rating into consideration along with other credit attributes in the establishment of an appropriate allowance for loan losses. See Note 6 for additional information. A description of the commercial loan categories is 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 collectability. A “doubtful” loan is placed on nonaccrual 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. On a quarterly basis, management reviews the criticized loan portfolio, which generally consists of commercial loans that are risk-rated special mention or worse, and other selected loans. Management’s review focuses on the current status of the loans and strategies to improve the credit. An annual loan review program is conducted by a third party to provide an independent evaluation of the creditworthiness of the commercial loan portfolio, the quality of the underwriting and credit risk management practices and the appropriateness of the risk rating classifications. This review is supplemented with selected targeted internal reviews of the commercial loan portfolio. The following table presents the commercial loan portfolio, segregated by category of credit quality indicator: (Dollars in thousands) Pass Special Mention Classified Mar 31, Dec 31, Mar 31, Dec 31, Mar 31, Dec 31, Commercial: Commercial real estate $1,441,182 $1,387,666 $17,778 $205 $4,722 $4,537 Commercial & industrial 571,489 559,019 27,073 50,426 12,046 11,259 Total commercial $2,012,671 $1,946,685 $44,851 $50,631 $16,768 $15,796 Residential and Consumer Management monitors the relatively homogeneous residential real estate and consumer loan portfolios on an ongoing basis using delinquency information by loan type. For non-impaired residential real estate and consumer loans, the Corporation assigns loss allocation factors to each respective loan type. Other techniques are utilized to monitor indicators of credit deterioration in the residential real estate loans and consumer loan portfolios. Among these techniques is the periodic tracking of loans with an updated Fair Isaac Corporation (“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 loan type and credit quality indicator: (Dollars in thousands) Current Past Due Mar 31, Dec 31, Mar 31, Dec 31, Residential Real Estate: Self-originated mortgages $1,240,306 $1,238,402 $9,751 $9,079 Purchased mortgages 107,917 111,465 1,098 1,441 Total residential real estate $1,348,223 $1,349,867 $10,849 $10,520 Consumer: Home equity $277,027 $278,637 $2,911 $1,989 Other 25,156 26,202 13 33 Total consumer $302,183 $304,839 $2,924 $2,022 |
Allowance for Loan Losses
Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is management’s best estimate of incurred losses inherent 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. The following table presents the activity in the allowance for loan losses for the three months ended March 31, 2019 : (Dollars in thousands) Commercial Consumer CRE (1) C&I (2) Total Commercial Residential Real Estate Home Equity Other Total Consumer Total Beginning Balance $15,381 $5,847 $21,228 $3,987 $1,603 $254 $1,857 $27,072 Charge-offs — (14 ) (14 ) — (61 ) (28 ) (89 ) (103 ) Recoveries — 8 8 — 13 4 17 25 Provision 1,810 (1,343 ) 467 22 34 127 161 650 Ending Balance $17,191 $4,498 $21,689 $4,009 $1,589 $357 $1,946 $27,644 (1) Commercial real estate loans. (2) Commercial & industrial loans. The following table presents the activity in the allowance for loan losses for the three months ended March 31, 2018 : (Dollars in thousands) Commercial Consumer CRE (1) C&I (2) Total Commercial Residential Real Estate Home Equity Other Total Consumer Total Beginning Balance $12,729 $5,580 $18,309 $5,427 $2,412 $340 $2,752 $26,488 Charge-offs (627 ) (6 ) (633 ) — (35 ) (22 ) (57 ) (690 ) Recoveries 25 29 54 — 7 5 12 66 Provision (308 ) 268 (40 ) 67 (192 ) 165 (27 ) — Ending Balance $11,819 $5,871 $17,690 $5,494 $2,192 $488 $2,680 $25,864 (1) Commercial real estate loans. (2) Commercial & industrial loans. The following table presents the Corporation’s loan portfolio and associated allowance for loan losses by portfolio segment and by impairment methodology: (Dollars in thousands) March 31, 2019 December 31, 2018 Loans Related Allowance Loans Related Allowance Loans Individually Evaluated for Impairment Commercial: Commercial real estate $926 $— $925 $— Commercial & industrial 4,626 — 4,714 — Total commercial 5,552 — 5,639 — Residential Real Estate: Residential real estate 10,394 98 9,710 100 Consumer: Home equity 1,408 111 1,445 24 Other 20 1 22 3 Total consumer 1,428 112 1,467 27 Subtotal 17,374 210 16,816 127 Loans Collectively Evaluated for Impairment Commercial: Commercial real estate 1,462,756 17,191 1,391,483 15,381 Commercial & industrial 605,982 4,498 615,990 5,847 Total commercial 2,068,738 21,689 2,007,473 21,228 Residential Real Estate: Residential real estate 1,348,678 3,911 1,350,677 3,887 Consumer: Home equity 278,530 1,478 279,182 1,579 Other 25,149 356 26,212 251 Total consumer 303,679 1,834 305,394 1,830 Subtotal 3,721,095 27,434 3,663,544 26,945 Total $3,738,469 $27,644 $3,680,360 $27,072 |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | Federal Home Loan Bank Advances Advances payable to the FHLB amounted to $1.1 billion and $950.7 million , respectively, at March 31, 2019 and December 31, 2018 . The following table presents maturities and weighted average interest rates on FHLB advances outstanding as of March 31, 2019 : (Dollars in thousands) Scheduled Weighted Average Rate April 1, 2019 to December 31, 2019 $822,665 2.63 % 2020 77,033 2.10 2021 86,222 2.73 2022 55,447 3.65 2023 9,428 4.01 2024 and thereafter 5,334 5.06 Balance at March 31, 2019 $1,056,129 2.68 % As of March 31, 2019 and December 31, 2018 , the Bank had access to a $40.0 million unused line of credit with the FHLB and also had remaining available borrowing capacity of $575.7 million and $628.5 million , respectively. The Bank pledges certain qualified investment securities and loans as collateral to the FHLB. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital Requirements | Shareholders' Equity Regulatory Capital Requirements Capital levels at March 31, 2019 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 March 31, 2019 Total Capital (to Risk-Weighted Assets): Corporation $467,260 12.59 % $296,925 8.00 % N/A N/A Bank 463,549 12.49 296,892 8.00 $371,115 10.00 % Tier 1 Capital (to Risk-Weighted Assets): Corporation 439,374 11.84 222,694 6.00 N/A N/A Bank 435,663 11.74 222,669 6.00 296,892 8.00 Common Equity Tier 1 Capital (to Risk-Weighted Assets): Corporation 417,376 11.25 167,020 4.50 N/A N/A Bank 435,663 11.74 167,002 4.50 241,225 6.50 Tier 1 Capital (to Average Assets): (1) Corporation 439,374 8.69 202,274 4.00 N/A N/A Bank 435,663 8.62 202,213 4.00 252,767 5.00 December 31, 2018 Total Capital (to Risk-Weighted Assets): Corporation 455,699 12.56 290,146 8.00 N/A N/A Bank 453,033 12.49 290,128 8.00 362,660 10.00 Tier 1 Capital (to Risk-Weighted Assets): Corporation 428,338 11.81 217,609 6.00 N/A N/A Bank 425,672 11.74 217,596 6.00 290,128 8.00 Common Equity Tier 1 Capital (to Risk-Weighted Assets): Corporation 406,340 11.20 163,207 4.50 N/A N/A Bank 425,672 11.74 163,197 4.50 235,729 6.50 Tier 1 Capital (to Average Assets): (1) Corporation 428,338 8.89 192,690 4.00 N/A N/A Bank 425,672 8.84 192,652 4.00 240,815 5.00 (1) Leverage ratio. In addition to the minimum regulatory capital required for capital adequacy purposes included in the table above, the Corporation is required to maintain a minimum capital conservation buffer, in the form of common equity, in order to avoid restrictions on capital distributions and discretionary bonuses. The required amount of the capital conservation buffer was 1.875% on January 1, 2018. The capital conservation buffer increased another 0.625% on January 1, 2019, reaching the full requirement of 2.50%. The Bancorp owns the common stock of two capital trusts, which have issued trust preferred securities. In accordance with GAAP, the capital trusts are treated as unconsolidated subsidiaries. At both March 31, 2019 and December 31, 2018 , $22.0 million in trust preferred securities were included in the Tier 1 Capital of the Corporation for regulatory capital reporting purposes pursuant to the Federal Reserve’s capital adequacy guidelines. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Corporation’s derivative financial instruments are used to manage differences in the amount, timing and duration of the Corporation’s known or expected cash receipts and its known or expected cash payments principally to manage the Corporation’s interest rate risk. Additionally, the Corporation enters into interest rate derivatives to accommodate the business requirements of its customers. All derivatives are recognized as either assets or liabilities on the balance sheet and are measured at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and resulting designation. Interest Rate Risk Management Agreements Interest rate risk management agreements, such as caps, swaps, and floors, 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 and floors 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 March 31, 2019 and December 31, 2018 , the Bancorp had two interest rate caps with a total 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. For both interest rate caps, the Bancorp obtained the right to receive the difference between 3-month LIBOR and a 4.5% strike. The caps mature in 2020. As of March 31, 2019 and December 31, 2018 , the Bank had two interest rate swap contracts with a total notional amount of $60.0 million that were designated as cash flow hedges to hedge the interest rate risk associated with short-term variable rate FHLB advances. The interest rate swaps mature in 2021 and 2023. As of March 31, 2019 and December 31, 2018 , the Bank had three interest rate floor contracts with a total notional amount of $300.0 million that were designated as cash flow hedges to hedge the interest rate risk associated with a pool of variable rate commercial loans. The Bank obtained the right to receive the difference between 1-month LIBOR and a 1.0% strike for each of the interest rate floors. The floors mature in 2020. The changes in fair value of derivatives designated as cash flow hedges are recorded in other comprehensive income and subsequently reclassified to earnings when gains or losses are realized. 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 variable-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 variable-rate loan payments. We retain the risk that is associated with the potential failure of counterparties and the risk inherent in originating loans. As of March 31, 2019 and December 31, 2018 , Washington Trust had interest rate swap contracts with commercial loan borrowers with notional amounts of $671.5 million and $ 648.0 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 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. As of March 31, 2019 , the notional amounts of risk participation-out agreements and risk participation-in agreements were $57.0 million and $46.4 million , respectively, compared to $57.3 million and $46.5 million , respectively, as of December 31, 2018 . Foreign Exchange Contracts Foreign exchange contracts represent contractual commitments to buy or sell a foreign currency on a future date at a specified price. The Corporation uses these foreign exchange contracts on a limited basis to reduce its exposure to fluctuations in currency exchange rates associated with a commercial loan that is denominated in a foreign currency. These derivatives are not designated as hedges and therefore changes in fair value are recognized in earnings. The changes in fair value on the foreign exchange contracts substantially offset the foreign currency translation gains and losses on the related commercial loan. As of March 31, 2019 and December 31, 2018 , the notional amount of foreign exchange contracts was $2.7 million and $2.8 million , respectively. Loan Commitments Interest rate lock commitments are extended to borrowers and relate to the origination of mortgage loans held for sale. To mitigate the interest rate risk and pricing risk associated with rate locks and mortgage loans held for sale, the Corporation enters into forward sale commitments. Forward sale commitments are contracts for delayed delivery or net settlement of the underlying instrument, such as a residential real estate mortgage loan, where the seller agrees to deliver on a specified future date, either a specified instrument at a specified price or yield or the net cash equivalent of an underlying instrument. Both interest rate lock commitments and forward sale commitments are derivative financial instruments, but do not meet criteria for hedge accounting and therefore, the changes in fair value of these commitments are reflected in earnings. As of March 31, 2019 , the notional amounts of interest rate lock commitments and forward sale commitments were $64.1 million and $94.6 million , respectively, compared to $30.8 million and $62.0 million , respectively, as of December 31, 2018 . The following table presents the fair values of derivative instruments in the Corporation’s Unaudited Consolidated Balance Sheets: (Dollars in thousands) Asset Derivatives Liability Derivatives Fair Value Fair Value Balance Sheet Location Mar 31, 2019 Dec 31, 2018 Balance Sheet Location Mar 31, 2019 Dec 31, 2018 Derivatives Designated as Cash Flow Hedging Instruments: Interest rate risk management contracts: Interest rate caps Other assets $3 $20 Other liabilities $— $— Interest rate swaps Other assets 291 903 Other liabilities — — Interest rate floors Other assets 16 37 Other liabilities — — Derivatives not Designated as Hedging Instruments: Loan related derivative contracts: Interest rate swaps with customers Other assets 11,176 5,340 Other liabilities 2,952 7,719 Mirror swaps with counterparties Other assets 2,897 7,592 Other liabilities 11,236 5,392 Risk participation agreements Other assets — — Other liabilities 1 — Foreign exchange contracts Other assets 8 — Other liabilities — 7 Forward loan commitments: Interest rate lock commitments Other assets 1,491 806 Other liabilities — — Forward sale commitments Other assets — — Other liabilities 818 816 Gross amounts 15,882 14,698 15,007 13,934 Less amounts offset in Consolidated Balance Sheets (1) 1,899 10,732 1,899 10,732 Net amounts presented in Consolidated Balance Sheets 13,983 3,966 13,108 3,202 Less collateral pledged (2) — — 9,569 1,460 Net amounts $13,983 $3,966 $3,539 $1,742 (1) Interest rate risk management contracts and loan related derivative contracts with counterparties are subject to master netting arrangements. (2) Collateral pledged to derivative counterparties is in the form of cash. Washington Trust may need to post additional collateral in the future in proportion to potential increases in unrealized loss positions. The following tables present the effect of derivative instruments in the Corporation’s Unaudited Consolidated Statements of Changes in Shareholders’ Equity and Unaudited Consolidated Statements of Income: (Dollars in thousands) Gain (Loss) Recognized in Other Comprehensive Income, Net of Tax Three months ended March 31, 2019 2018 Derivatives Designated as Cash Flow Hedging Instruments: Interest rate risk management contracts: Interest rate caps $— $38 Interest rate swaps (466 ) 839 Interest rate floors 24 12 Total ($442 ) $889 See Note 15 for additional disclosure pertaining to the amounts reclassified from accumulated other comprehensive income into earnings for derivatives designated as cash flow hedging instruments. (Dollars in thousands) Amount of Gain (Loss) Recognized in Income on Derivatives Three months ended March 31, Statement of Income Location 2019 2018 Derivatives not Designated as Hedging Instruments: Loan related derivative contracts: Interest rate swaps with customers Loan related derivative income $10,310 ($9,195 ) Mirror swaps with counterparties Loan related derivative income (9,604 ) 9,324 Risk participation agreements Loan related derivative income — — Foreign exchange contracts Loan related derivative income 18 12 Forward loan commitments: Interest rate lock commitments Mortgage banking revenues 685 (14 ) Forward sale commitments Mortgage banking revenues (429 ) 1,318 Total $980 $1,445 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
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. Items recorded at fair value on a recurring basis include securities available for sale, mortgage loans held for sale and derivatives. Additionally, from time to time, we may be required to record at fair value other assets on a nonrecurring basis, such as collateral dependent impaired loans, property acquired through foreclosure or repossession and mortgage servicing rights. These nonrecurring fair value adjustments typically involve the application of lower of cost or market accounting or write-downs of individual assets. Fair value is a market-based measurement, not an entity-specific measurement. Fair value measurements are determined based on the assumptions the market participants would use in pricing the asset or liability. In addition, GAAP specifies a hierarchy of valuation techniques based on whether the types of valuation information (“inputs”) are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Corporation’s market assumptions. These two types of inputs have created the following fair value hierarchy: • Level 1 – Quoted prices for identical assets or liabilities in active markets. • Level 2 – Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable in the markets and which reflect the Corporation’s market assumptions. 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 mortgage loans held for sale to better match changes in fair value of the loans with changes in the fair value of the forward sale commitment contracts used to economically hedge them. The following table presents a summary of mortgage loans held for sale accounted for under the fair value option: (Dollars in thousands) March 31, December 31, Aggregate fair value $14,608 $20,996 Aggregate principal balance 14,244 20,498 Difference between fair value and principal balance $364 $498 Changes in fair value of mortgage loans held for sale accounted for under the fair value option election amounted to a decrease of $135 thousand in the three months ended March 31, 2019 , compared to a decrease of $329 thousand in the three months ended March 31, 2018 . These amounts were partially offset in earnings by the changes in fair value of forward sale commitments used to economically hedge them. The changes in fair value are reported as a component of mortgage banking revenues in the Unaudited Consolidated Statements of Income. There were no mortgage loans held for sale 90 days or more past due as of March 31, 2019 and December 31, 2018 . Valuation Techniques Debt Securities Available for sale debt securities are recorded at fair value on a recurring basis. When available, the Corporation uses quoted market prices to determine the fair value of debt securities; such items are classified as Level 1. There were no Level 1 debt securities held at March 31, 2019 and December 31, 2018 . Level 2 debt securities 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, including mortgage-backed securities, obligations of states and political subdivisions, individual name issuer trust preferred debt securities and corporate bonds. Debt 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 debt securities held at March 31, 2019 and December 31, 2018 . 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. Property Acquired Through Foreclosure or Repossession Property acquired through foreclosure or repossession included in other assets in the Unaudited 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 cap, swap and floor 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, factors such as the likelihood of default by the Corporation and its counterparties, its net exposures and remaining contractual life are considered 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, if any. Although the Corporation has determined that the majority of the inputs used to value its interest rate swap, cap and floor 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 March 31, 2019 and December 31, 2018 , 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 forward sale commitments) are primarily based on current market prices for similar assets in the secondary market for mortgage loans and therefore are classified as Level 2 assets. The fair value of interest rate lock commitments is also dependent on the ultimate closing of the loans. Pull-through rates are based on the Corporation’s historical data and reflect the Corporation’s best estimate of the likelihood that a commitment will result in a closed loan. Although the pull-through rates are Level 3 inputs, the Corporation has assessed the significance of the impact of pull-through rates on the overall valuation of its interest rate lock commitments and has determined that they are not significant to the overall valuation. As a result, the Corporation has classified its interest rate lock commitments as Level 2. Contingent Consideration Liability A contingent consideration liability was recognized upon the completion of the Halsey Associates, Inc. acquisition on August 1, 2015 representing the estimated present value of future earn-outs to be paid based on the future revenue growth of the acquired business during the five -year period following the acquisition. The fair value measurement was based upon unobservable inputs; therefore, the contingent liability was classified within Level 3 of the fair value hierarchy. The unobservable inputs included probability estimates regarding the likelihood of achieving revenue growth targets and the discount rates utilized the discounted cash flow calculations applied to the estimated earn-outs to be paid. The contingent consideration liability was 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 were included in noninterest expenses in the Consolidated Statements of Income. One of the two earn-out periods associated with this contingent consideration liability ended December 31, 2017 and a payment of $1.2 million was made by the Corporation in the first quarter of 2018. The likelihood of payout on the remaining earn-out period had been deemed remote and as a result the fair value of the contingent consideration liability was reduced to zero in 2018 . There have been no changes to the fair value of the contingent consideration liability for the three months ended March 31, 2019 . 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) March 31, 2019 Assets: Available for sale debt securities: Obligations of U.S. government-sponsored enterprises $245,472 $— $245,472 $— Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 723,505 — 723,505 — Obligations of states and political subdivisions 937 — 937 — Individual name issuer trust preferred debt securities 12,370 — 12,370 — Corporate bonds 12,597 — 12,597 — Mortgage loans held for sale 14,608 — 14,608 — Derivative assets 13,983 — 13,983 — Total assets at fair value on a recurring basis $1,023,472 $— $1,023,472 $— Liabilities: Derivative liabilities $13,108 $— $13,108 $— Total liabilities at fair value on a recurring basis $13,108 $— $13,108 $— (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2018 Assets: Available for sale debt securities: Obligations of U.S. government-sponsored enterprises $242,683 $— $242,683 $— Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 660,793 — 660,793 — Obligations of states and political subdivisions 937 — 937 — Individual name issuer trust preferred debt securities 11,772 — 11,772 — Corporate bonds 11,625 — 11,625 — Mortgage loans held for sale 20,996 — 20,996 — Derivative assets 3,966 — 3,966 — Total assets at fair value on a recurring basis $952,772 $— $952,772 $— Liabilities: Derivative liabilities $3,202 $— $3,202 $— Total liabilities at fair value on a recurring basis $3,202 $— $3,202 $— It is the Corporation’s policy to review and reflect transfers between Levels as of the financial statement reporting date. There were no transfers in and/or out of Level 1, 2 or 3 during the three months ended March 31, 2019 and 2018 . Items Recorded at Fair Value on a Nonrecurring Basis During the three months ended March 31, 2019 , one collateral dependent impaired loan with a carrying value of $103 thousand at December 31, 2018 was written down to a fair value of zero . The allowance for loan losses on collateral dependent impaired loans amounted to $111 thousand at March 31, 2019 . The following table presents the carrying value of assets held at December 31, 2018 , which were written down to fair value during the year ended December 31, 2018 : (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Collateral dependent impaired loans $883 $— $— $883 Property acquired through foreclosure or repossession 2,142 — — 2,142 Total assets at fair value on a nonrecurring basis $3,025 $— $— $3,025 The allowance for loan losses on collateral dependent impaired loans amounted to $24 thousand at December 31, 2018 . The following tables present valuation techniques and unobservable inputs for assets measured at fair value on a nonrecurring basis for which the Corporation has utilized Level 3 inputs to determine fair value: (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range of Inputs Utilized (Weighted Average) March 31, 2019 Collateral dependent impaired loans $— Appraisals of collateral Appraisal adjustments (1) 100% (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, 2018 Collateral dependent impaired loans $883 Appraisals of collateral Discount for costs to sell 0% - 10% (10%) Appraisal adjustments (1) 0% - 100% (2%) Property acquired through foreclosure or repossession $2,142 Appraisals of collateral Discount for costs to sell 13% Appraisal adjustments (1) 12% - 28% (20%) (1) Management may adjust appraisal values to reflect market value declines or other discounts resulting from its knowledge of the property. Valuation of Financial Instruments The estimated fair values and related carrying amounts for financial instruments for which fair value is only disclosed are presented below as of the periods indicated. The tables exclude financial instruments for which the carrying value approximates fair value such as cash and cash equivalents, FHLB stock, accrued interest receivable, bank-owned life insurance, non-maturity deposits and accrued interest payable. (Dollars in thousands) March 31, 2019 Carrying Amount Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Financial Assets: Loans, net of allowance for loan losses $3,710,825 $3,664,361 $— $— $3,664,361 Financial Liabilities: Time deposits $1,276,464 $1,292,947 $— $1,292,947 $— FHLB advances 1,056,129 1,058,936 — 1,058,936 — Junior subordinated debentures 22,681 19,363 — 19,363 — (Dollars in thousands) December 31, 2018 Carrying Amount Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Financial Assets: Held to maturity debt securities $10,415 $10,316 $— $10,316 $— Loans, net of allowance for loan losses 3,653,288 3,598,025 — — 3,598,025 Financial Liabilities: Time deposits $1,255,108 $1,269,433 $— $1,269,433 $— FHLB advances 950,722 950,691 — 950,691 — Junior subordinated debentures 22,681 19,226 — 19,226 — |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The following table summarizes total revenues as presented in the Unaudited Consolidated Statements of Income and the related amounts which are from contracts with customers within the scope of Topic 606. As shown below, a substantial portion of our revenues are specifically excluded from the scope of Topic 606. For the three months ended March 31, 2019 2018 (Dollars in thousands) As reported in Consolidated Statements of Income Revenue from contracts in scope of Topic 606 As reported in Consolidated Statements of Income Revenue from contracts in scope of Topic 606 Net interest income $34,584 $— $31,852 $— Noninterest income: Asset-based wealth management revenues 8,921 8,921 9,955 9,955 Transaction-based wealth management revenues 331 331 318 318 Total wealth management revenues 9,252 9,252 10,273 10,273 Mortgage banking revenues 2,646 — 2,838 — Card interchange fees 997 997 847 847 Service charges on deposit accounts 875 875 863 863 Loan related derivative income 724 — 141 — Income from bank-owned life insurance 649 — 515 — Other income 224 224 266 266 Total noninterest income 15,367 11,348 15,743 12,249 Total revenues $49,951 $11,348 $47,595 $12,249 The following table presents revenue from contracts with customers based on the timing of revenue recognition: (Dollars in thousands) Three months ended March 31, 2019 2018 Revenue recognized at a point in time: Card interchange fees $997 $847 Service charges on deposit accounts 662 672 Other income 179 226 Revenue recognized over time: Wealth management revenues 9,252 10,273 Service charges on deposit accounts 213 191 Other income 45 40 Total revenues from contracts in scope of Topic 606 $11,348 $12,249 Receivables primarily consist of amounts due from customers for wealth management services performed for which the Corporation’s performance obligations have been fully satisfied. Receivables amounted to $5.0 million at March 31, 2019 , compared to $4.8 million at December 31, 2018 and were included in other assets in the Unaudited Consolidated Balance Sheets. Deferred revenues, which are considered contract liabilities under Topic 606, represent advance consideration received from customers for which the Corporation has a remaining performance obligation to fulfill. Contract liabilities are recognized as revenue over the life of the contract as the performance obligations are satisfied. The balances of contract liabilities were insignificant at both March 31, 2019 and December 31, 2018 and were included in other liabilities in the Unaudited Consolidated Balance Sheets. For commissions and incentives that are in-scope of Topic 606, such as those paid to employees in our wealth management services and commercial banking segments in order to obtain customer contracts, contract cost assets are established. The contract cost assets are capitalized and amortized over the estimated useful life that the asset is expected to generate benefits. The carrying value of contract cost assets amounted to $483 thousand at March 31, 2019 , compared to $458 thousand at December 31, 2018 and were included in other assets in the Unaudited Consolidated Balance Sheets. |
Defined Benefit Pension Plans
Defined Benefit Pension Plans | 3 Months Ended |
Mar. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Defined Benefit Pension Plans | Defined Benefit Pension Plans Washington Trust maintains a qualified pension plan for the benefit of certain eligible employees who were hired prior to October 1, 2007. Washington Trust 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 qualified pension plan is funded on a current basis, in compliance with the requirements of ERISA. The following table presents components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss), on a pre-tax basis: (Dollars in thousands) Qualified Pension Plan Non-Qualified Retirement Plans Three months ended March 31, 2019 2018 2019 2018 Net Periodic Benefit Cost: Service cost (1) $509 $561 $31 $27 Interest cost (2) 742 679 141 119 Expected return on plan assets (2) (1,124 ) (1,318 ) — — Amortization of prior service credit (2) (4 ) (6 ) — — Recognized net actuarial loss (2) 198 374 102 102 Net periodic benefit cost $321 $290 $274 $248 (1) Included in salaries and employee benefits expense in the Unaudited Consolidated Statements of Income. (2) Included in other expenses in the Unaudited Consolidated Statements of Income. 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 For the three months ended March 31, 2019 2018 2019 2018 Measurement date Dec 31, 2018 Dec 31, 2017 Dec 31, 2018 Dec 31, 2017 Equivalent single discount rate for benefit obligations 4.38% 3.69% 4.28% 3.58% Equivalent single discount rate for service cost 4.44 3.76 4.48 3.79 Equivalent single discount rate for interest cost 4.12 3.42 3.98 3.22 Expected long-term return on plan assets 5.75 6.75 N/A N/A Rate of compensation increase 3.75 3.75 3.75 3.75 |
Share-Based Compensation Arrang
Share-Based Compensation Arrangements | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation Arrangements | Share-Based Compensation Arrangements During the three months ended March 31, 2019 , the Corporation granted performance share unit awards and nonvested share unit awards. The performance share awards granted to certain executive officers provide them with the opportunity to earn shares of common stock of the Corporation. The performance share awards were valued at fair market value as of January 17, 2019 (the award date), or $52.87 , 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 41,440 shares. The Corporation granted to a non-executive officer 1,000 nonvested share units, with 3 -year cliff vesting. The weighted average grant date fair value of the nonvested share units was $51.31 . |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2019 | |
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 (“FTP”) 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. The matched maturity funding concept considers the origination date and the earlier of the maturity date or the repricing date of a financial instrument to assign an FTP rate for loans and deposits originated. Loans are assigned a FTP rate for funds used and deposits are assigned a FTP rate for funds provided. 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; 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 (“BOLI”), as well as administrative and executive expenses not allocated to the operating segments and the residual impact of methodology allocations such as FTP offsets. The following table presents the statement of operations and total assets for Washington Trust’s reportable segments: (Dollars in thousands) Commercial Banking Wealth Management Services Corporate Consolidated Total Three months ended March 31, 2019 2018 2019 2018 2019 2018 2019 2018 Net interest income (expense) $27,302 $25,976 ($127 ) ($58 ) $7,409 $5,934 $34,584 $31,852 Provision for loan losses 650 — — — — — 650 — Net interest income (expense) after provision for loan losses 26,652 25,976 (127 ) (58 ) 7,409 5,934 33,934 31,852 Noninterest income 5,455 4,936 9,252 10,273 660 534 15,367 15,743 Noninterest expenses: Depreciation and amortization expense 672 637 365 396 40 42 1,077 1,075 Other noninterest expenses 15,758 15,466 6,478 7,199 3,651 3,390 25,887 26,055 Total noninterest expenses 16,430 16,103 6,843 7,595 3,691 3,432 26,964 27,130 Income before income taxes 15,677 14,809 2,282 2,620 4,378 3,036 22,337 20,465 Income tax expense 3,421 3,103 617 643 804 508 4,842 4,254 Net income $12,256 $11,706 $1,665 $1,977 $3,574 $2,528 $17,495 $16,211 Total assets at period end $3,884,052 $3,521,309 $76,657 $66,567 $1,194,020 $978,450 $5,154,729 $4,566,326 Expenditures for long-lived assets 1,300 598 292 154 63 59 1,655 811 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The following tables present the activity in other comprehensive income (loss): Three months ended March 31, 2019 2018 (Dollars in thousands) Pre-tax Amounts Income Taxes Net of Tax Pre-tax Amounts Income Taxes Net of Tax Securities available for sale: Changes in fair value of available for sale debt securities $14,406 $3,385 $11,021 ($13,613 ) ($3,199 ) ($10,414 ) Net gains on debt securities reclassified into earnings — — — — — — Net change in fair value of available for sale debt securities 14,406 3,385 11,021 (13,613 ) (3,199 ) (10,414 ) Cash flow hedges: Change in fair value of cash flow hedges (546 ) (128 ) (418 ) 803 91 712 Net cash flow hedge losses reclassified into earnings (1) (31 ) (7 ) (24 ) 231 54 177 Net change in fair value of cash flow hedges (577 ) (135 ) (442 ) 1,034 145 889 Defined benefit plan obligations: Amortization of net actuarial losses (2) 300 70 230 476 112 364 Amortization of net prior service credits (2) (4 ) (1 ) (3 ) (6 ) (2 ) (4 ) Net change in defined benefit plan obligations 296 69 227 470 110 360 Total other comprehensive income (loss) $14,125 $3,319 $10,806 ($12,109 ) ($2,944 ) ($9,165 ) (1) The pre-tax amounts are included in interest expense on FHLB advances, interest expense on junior subordinated debentures and interest and fees on loans in the Unaudited Consolidated Statements of Income. (2) The pre-tax amounts are included in other expenses in the Unaudited 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 (Losses) Gains on Available For Sale Debt Securities Net Unrealized Gains (Losses) on Cash Flow Hedges Defined Benefit Pension Plan Adjustment Total Balance at December 31, 2018 ($16,762 ) $191 ($11,738 ) ($28,309 ) Other comprehensive income (loss) before reclassifications 11,021 (418 ) — 10,603 Amounts reclassified from accumulated other comprehensive income — (24 ) 227 203 Net other comprehensive income (loss) 11,021 (442 ) 227 10,806 Balance at March 31, 2019 ($5,741 ) ($251 ) ($11,511 ) ($17,503 ) (Dollars in thousands) Net Unrealized Losses on Available For Sale Debt Securities Net Unrealized (Losses) Gains on Cash Flow Hedges Defined Benefit Pension Plan Adjustment Total Balance at December 31, 2017 ($7,534 ) ($428 ) ($15,548 ) ($23,510 ) Other comprehensive (loss) income before reclassifications (10,414 ) 712 — (9,702 ) Amounts reclassified from accumulated other comprehensive income — 177 360 537 Net other comprehensive (loss) income (10,414 ) 889 360 (9,165 ) Balance at March 31, 2018 ($17,948 ) $461 ($15,188 ) ($32,675 ) |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2019 | |
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 ended March 31, 2019 2018 Earnings per common share - basic: Net income $17,495 $16,211 Less dividends and undistributed earnings allocated to participating securities (34 ) (38 ) Net income available to common shareholders $17,461 $16,173 Weighted average common shares 17,304 17,234 Earnings per common share - basic $1.01 $0.94 Earnings per common share - diluted: Net income $17,495 $16,211 Less dividends and undistributed earnings allocated to participating securities (34 ) (38 ) Net income available to common shareholders $17,461 $16,173 Weighted average common shares 17,304 17,234 Dilutive effect of common stock equivalents 97 111 Weighted average diluted common shares 17,401 17,345 Earnings per common share - diluted $1.00 $0.93 Weighted average common stock equivalents, not included in common stock equivalents above because they were anti-dilutive, totaled 87,775 and 45,832 , respectively for the three months ended March 31, 2019 and 2018 . |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Corporation has committed to rent premises used in business operations under non-cancelable operating leases and determines if an arrangement meets the definition of a lease upon inception. The Corporation adopted the provisions of ASU 2016-02 (Topic 842) on January 1, 2019. Operating lease right-of-use (“ROU”) assets represent a right to use an underlying asset for the contractual lease term. Operating lease liabilities represent an obligation to make lease payments arising from the lease. Upon adoption, operating lease ROU assets totaling $28.9 million and operating lease liabilities totaling $30.9 million were recognized in our Unaudited Consolidated Balance Sheets for leases that existed at the adoption date, based on the present value of lease payments over the remaining lease term. Operating leases entered into after the adoption date will be recognized as an operating lease ROU asset and operating lease liability at the commencement date of the new lease. The Corporation’s leases do not provide an implicit interest rate, therefore the Corporation used its incremental collateralized borrowing rates commensurate with the underlying lease terms to determine the present value of operating lease liabilities. The weighted average discount rate used to discount operating lease liabilities at March 31, 2019 was 3.66% . The Corporation’s operating lease agreements contain both lease and non-lease components, which are generally accounted for separately. The Corporation’s lease agreements do not contain any residual value guarantees. Operating leases with terms of 12 months or less are included in ROU assets and operating lease liabilities recorded in our Unaudited Consolidated Balance Sheets. Operating lease terms include options to extend when it is reasonably certain that the Corporation will exercise such options, determined on a lease-by-lease basis. As of March 31, 2019 , the Corporation does not have any leases that have not yet commenced. At March 31, 2019 , lease expiration dates ranged from 2 months to 22 years, with additional renewal options on certain leases ranging from 1 to 5 years. At March 31, 2019 , the weighted average remaining lease term for the Corporation’s operating leases was 14.4 years. Rental expense for operating leases is recognized on a straight-line basis over the lease term and amounted to $939 thousand and $916 thousand , respectively, for the three months ended March 31, 2019 and 2018 . Variable lease components, such as fair market value adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities. The following table presents the minimum annual lease payments under the terms of these leases, inclusive of renewal options that the Corporation is reasonably certain to renew, at March 31, 2019 : (Dollars in thousands) April 1, 2019 to December 31, 2019 $2,665 2020 3,433 2021 3,270 2022 3,123 2023 2,991 2024 and thereafter 24,318 Total operating lease payments (1) 39,800 Less interest 9,613 Present value of operating lease liabilities (2) $30,187 (1) Includes $4.7 million related to options to extend lease terms that are reasonably certain of being exercised. (2) Includes short-term operating lease liabilities of $2.5 million . The following table presents the components of total lease expense and operating cash flows: (Dollars in thousands) Three months ended March 31, 2019 Lease Expense: Operating lease expense $928 Variable lease expense 11 Total lease expense (1) $939 Cash Paid: Cash paid reducing operating lease liabilities $920 (1) Included in net occupancy expenses in the Unaudited Consolidated Income Statement. The following table presents the minimum annual lease payments under the terms of these leases, exclusive of renewal provisions at December 31, 2018 : (Dollars in thousands) Years ending December 31: 2019 $3,544 2020 2,980 2021 2,677 2022 2,293 2023 2,059 2024 and thereafter 22,648 Total minimum lease payments $36,201 At December 31, 2018 , lease expiration dates ranged from 5 months to 22 years, with additional renewal options on certain leases ranging from 1 to 5 years. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
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, forward loan commitments, loan related derivative contracts and interest rate risk management contracts. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Corporation’s Unaudited Consolidated Balance Sheets. The contract or notional amounts of these instruments reflect the extent of involvement the Corporation has in particular classes of financial instruments. The Corporation’s credit policies with respect to interest rate swap agreements with commercial borrowers, commitments to extend credit and financial guarantees are similar to those used for loans. The interest rate swaps with other counterparties are generally subject to bilateral collateralization terms. The following table presents the contractual and notional amounts of financial instruments with off-balance sheet risk: (Dollars in thousands) Mar 31, Dec 31, Financial instruments whose contract amounts represent credit risk: Commitments to extend credit: Commercial loans $502,781 $533,884 Home equity lines 278,477 270,462 Other loans 48,750 46,698 Standby letters of credit 8,469 7,706 Financial instruments whose notional amounts exceed the amount of credit risk: Forward loan commitments: Interest rate lock commitments 64,104 30,766 Forward sale commitments 94,640 61,993 Loan related derivative contracts: Interest rate swaps with customers 671,492 648,050 Mirror swaps with counterparties 671,492 648,050 Risk participation-in agreements 46,357 46,510 Foreign exchange contracts 2,726 2,784 Interest rate risk management contracts: Interest rate swaps 60,000 60,000 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 one year. The maximum potential amount of undiscounted future payments, not reduced by amounts that may be recovered totaled $8.5 million and $7.7 million , respectively, as of March 31, 2019 and December 31, 2018 . At March 31, 2019 and December 31, 2018 , there were no liabilities to beneficiaries resulting from standby letters of credit. Fee income on standby letters of credit was insignificant for the three months ended March 31, 2019 and 2018 . Forward Loan Commitments Interest rate lock commitments are extended to borrowers and relate to the origination of mortgage loans held for sale. To mitigate the interest rate risk and pricing risk associated with these rate locks and mortgage loans held for sale, the Corporation enters into forward sale commitments. Both interest rate lock commitments and forward sale commitments are derivative financial instruments. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | The Unaudited Consolidated Financial Statements include the accounts of the Bancorp and its subsidiaries (collectively the “Corporation” or “Washington Trust”). All intercompany balances and transactions have been eliminated. Certain previously reported amounts have been reclassified to conform to current year’s presentation. The Bancorp also owns the common stock of two capital trusts, which have issued trust preferred securities. These capital trusts are variable interest entities in which the Bancorp is not the primary beneficiary and, therefore, are not consolidated. The capital trust’s only assets are junior subordinated debentures issued by the Bancorp, which were acquired by the capital trusts using the proceeds from the issuance of the trust preferred securities and common stock. The Bancorp’s equity interest in the capital trusts, classified in other assets, and the junior subordinated debentures are included in the Unaudited Consolidated Balance Sheets. Interest expense on the junior subordinated debentures is included in the Unaudited Consolidated Statements of Income. |
Basis of Accounting | The accounting and reporting policies of the Corporation conform to accounting principles generally accepted in the United States of America (“GAAP”) and to general practices of the banking industry. |
Use of Estimates | In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ from those estimates. |
Leases (Policies)
Leases (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | The Corporation has committed to rent premises used in business operations under non-cancelable operating leases and determines if an arrangement meets the definition of a lease upon inception. The Corporation adopted the provisions of ASU 2016-02 (Topic 842) on January 1, 2019. Operating lease right-of-use (“ROU”) assets represent a right to use an underlying asset for the contractual lease term. Operating lease liabilities represent an obligation to make lease payments arising from the lease. Upon adoption, operating lease ROU assets totaling $28.9 million and operating lease liabilities totaling $30.9 million were recognized in our Unaudited Consolidated Balance Sheets for leases that existed at the adoption date, based on the present value of lease payments over the remaining lease term. Operating leases entered into after the adoption date will be recognized as an operating lease ROU asset and operating lease liability at the commencement date of the new lease. The Corporation’s leases do not provide an implicit interest rate, therefore the Corporation used its incremental collateralized borrowing rates commensurate with the underlying lease terms to determine the present value of operating lease liabilities. The weighted average discount rate used to discount operating lease liabilities at March 31, 2019 was 3.66% . The Corporation’s operating lease agreements contain both lease and non-lease components, which are generally accounted for separately. The Corporation’s lease agreements do not contain any residual value guarantees. Operating leases with terms of 12 months or less are included in ROU assets and operating lease liabilities recorded in our Unaudited Consolidated Balance Sheets. Operating lease terms include options to extend when it is reasonably certain that the Corporation will exercise such options, determined on a lease-by-lease basis. As of March 31, 2019 , the Corporation does not have any leases that have not yet commenced. At March 31, 2019 , lease expiration dates ranged from 2 months to 22 years, with additional renewal options on certain leases ranging from 1 to 5 years. At March 31, 2019 , the weighted average remaining lease term for the Corporation’s operating leases was 14.4 years. Rental expense for operating leases is recognized on a straight-line basis over the lease term and amounted to $939 thousand and $916 thousand , respectively, for the three months ended March 31, 2019 and 2018 . Variable lease components, such as fair market value adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities. |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments | The following tables present the amortized cost, gross unrealized holding gains, gross unrealized holding losses and fair value of securities by major security type and class of security: (Dollars in thousands) March 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Available for Sale Debt Securities: Obligations of U.S. government-sponsored enterprises $246,717 $682 ($1,927 ) $245,472 Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 727,511 4,341 (8,347 ) 723,505 Obligations of states and political subdivisions 935 2 — 937 Individual name issuer trust preferred debt securities 13,311 — (941 ) 12,370 Corporate bonds 13,911 9 (1,323 ) 12,597 Total available for sale debt securities $1,002,385 $5,034 ($12,538 ) $994,881 Total securities $1,002,385 $5,034 ($12,538 ) $994,881 (Dollars in thousands) December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Available for Sale Debt Securities: Obligations of U.S. government-sponsored enterprises $246,708 $442 ($4,467 ) $242,683 Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 675,368 1,943 (16,518 ) 660,793 Obligations of states and political subdivisions 935 2 — 937 Individual name issuer trust preferred debt securities 13,307 — (1,535 ) 11,772 Corporate bonds 13,402 — (1,777 ) 11,625 Total available for sale debt securities $949,720 $2,387 ($24,297 ) $927,810 Held to Maturity Debt Securities: Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises $10,415 $— ($99 ) $10,316 Total held to maturity debt securities $10,415 $— ($99 ) $10,316 Total securities $960,135 $2,387 ($24,396 ) $938,126 |
Securities by Contractual Maturity | The schedule of maturities of available for sale debt securities 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 March 31, 2019 Amortized Cost Fair Value Due in one year or less $74,364 $73,944 Due after one year to five years 345,082 343,090 Due after five years to ten years 351,603 348,484 Due after ten years 231,336 229,363 Total debt securities $1,002,385 $994,881 |
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 March 31, 2019 # Fair Unrealized # Fair Value Unrealized Losses # Fair Value Unrealized Losses Obligations of U.S. government-sponsored enterprises — $— $— 14 $139,573 ($1,927 ) 14 $139,573 ($1,927 ) Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises — — — 47 409,374 (8,347 ) 47 409,374 (8,347 ) Individual name issuer trust preferred debt securities — — — 5 12,370 (941 ) 5 12,370 (941 ) Corporate bonds — — — 7 11,874 (1,323 ) 7 11,874 (1,323 ) Total temporarily impaired securities — $— $— 73 $573,191 ($12,538 ) 73 $573,191 ($12,538 ) (Dollars in thousands) Less than 12 Months 12 Months or Longer Total December 31, 2018 # Fair Value Unrealized Losses # Fair Value Unrealized Losses # Fair Value Unrealized Losses Obligations of U.S. government-sponsored enterprises — $— $— 16 $157,032 ($4,467 ) 16 $157,032 ($4,467 ) Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 10 47,060 (439 ) 51 438,701 (16,178 ) 61 485,761 (16,617 ) Individual name issuer trust preferred debt securities — — — 5 11,772 (1,535 ) 5 11,772 (1,535 ) Corporate bonds 3 1,198 (9 ) 5 10,427 (1,768 ) 8 11,625 (1,777 ) Total temporarily impaired securities 13 $48,258 ($448 ) 77 $617,932 ($23,948 ) 90 $666,190 ($24,396 ) |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Summary of Loans | The following is a summary of loans: (Dollars in thousands) March 31, 2019 December 31, 2018 Commercial: Commercial real estate (1) $1,463,682 $1,392,408 Commercial & industrial (2) 610,608 620,704 Total commercial 2,074,290 2,013,112 Residential Real Estate: Residential real estate (3) 1,359,072 1,360,387 Consumer: Home equity 279,938 280,626 Other (4) 25,169 26,235 Total consumer 305,107 306,861 Total loans (5) $3,738,469 $3,680,360 (1) Consists of commercial mortgages primarily secured by income-producing property, as well as construction and development loans. Construction and development loans are made to businesses for land development or the on-site construction of industrial, commercial, or residential buildings. (2) Consists of loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate. (3) Consists of mortgage and homeowner construction loans secured by one- to four-family residential properties. (4) Consists of loans to individuals secured by general aviation aircraft and other personal installment loans. (5) Includes net unamortized loan origination costs of $4.9 million and $4.7 million , respectively, at March 31, 2019 and December 31, 2018 and net unamortized premiums on purchased loans of $668 thousand and $703 thousand , respectively, at March 31, 2019 and December 31, 2018 . |
Past Due Loans | The following tables present an age analysis of past due loans, segregated by class of loans: (Dollars in thousands) Days Past Due March 31, 2019 30-59 60-89 Over 90 Total Past Due Current Total Loans Commercial: Commercial real estate $— $— $926 $926 $1,462,756 $1,463,682 Commercial & industrial 1 — — 1 610,607 610,608 Total commercial 1 — 926 927 2,073,363 2,074,290 Residential Real Estate: Residential real estate 5,868 2,749 2,232 10,849 1,348,223 1,359,072 Consumer: Home equity 1,851 433 627 2,911 277,027 279,938 Other 13 — — 13 25,156 25,169 Total consumer 1,864 433 627 2,924 302,183 305,107 Total loans $7,733 $3,182 $3,785 $14,700 $3,723,769 $3,738,469 (Dollars in thousands) Days Past Due December 31, 2018 30-59 60-89 Over 90 Total Past Due Current Total Loans Commercial: Commercial real estate $155 $925 $— $1,080 $1,391,328 $1,392,408 Commercial & industrial — — — — 620,704 620,704 Total commercial 155 925 — 1,080 2,012,032 2,013,112 Residential Real Estate: Residential real estate 6,318 2,693 1,509 10,520 1,349,867 1,360,387 Consumer: Home equity 1,281 156 552 1,989 278,637 280,626 Other 33 — — 33 26,202 26,235 Total consumer 1,314 156 552 2,022 304,839 306,861 Total loans $7,787 $3,774 $2,061 $13,622 $3,666,738 $3,680,360 |
Impaired Loans | The following is a summary of impaired loans: (Dollars in thousands) Recorded Investment (1) Unpaid Principal Related Allowance Mar 31, Dec 31, Mar 31, Dec 31, Mar 31, Dec 31, No Related Allowance Recorded Commercial: Commercial real estate $926 $925 $926 $926 $— $— Commercial & industrial 4,645 4,681 4,633 4,732 — — Total commercial 5,571 5,606 5,559 5,658 — — Residential Real Estate: Residential real estate 9,659 9,347 10,010 9,695 — — Consumer: Home equity 1,297 1,360 1,297 1,360 — — Other — — — — — — Total consumer 1,297 1,360 1,297 1,360 — — Subtotal 16,527 16,313 16,866 16,713 — — With Related Allowance Recorded Commercial: Commercial real estate $— $— $— $— $— $— Commercial & industrial — 52 — 73 — — Total commercial — 52 — 73 — — Residential Real Estate: Residential real estate 736 364 762 390 98 100 Consumer: Home equity 111 85 111 85 111 24 Other 21 22 20 22 1 3 Total consumer 132 107 131 107 112 27 Subtotal 868 523 893 570 210 127 Total impaired loans $17,395 $16,836 $17,759 $17,283 $210 $127 Total: Commercial $5,571 $5,658 $5,559 $5,731 $— $— Residential real estate 10,395 9,711 10,772 10,085 98 100 Consumer 1,429 1,467 1,428 1,467 112 27 Total impaired loans $17,395 $16,836 $17,759 $17,283 $210 $127 (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 accruing impaired 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. (Dollars in thousands) Average Recorded Investment Interest Income Recognized Three months ended March 31, 2019 2018 2019 2018 Commercial: Commercial real estate $976 $4,100 $1 $— Commercial & industrial 4,689 5,492 54 66 Total commercial 5,665 9,592 55 66 Residential Real Estate: Residential real estate 10,151 9,850 115 112 Consumer: Home equity 1,480 667 14 9 Other 21 144 — 3 Total consumer 1,501 811 14 12 Totals $17,317 $20,253 $184 $190 |
Nonaccrual Loans | The following is a summary of nonaccrual loans, segregated by class of loans: (Dollars in thousands) Mar 31, Dec 31, Commercial: Commercial real estate $926 $925 Commercial & industrial — — Total commercial 926 925 Residential Real Estate: Residential real estate 10,032 9,346 Consumer: Home equity 1,407 1,436 Other — — Total consumer 1,407 1,436 Total nonaccrual loans $12,365 $11,707 Accruing loans 90 days or more past due $— $— |
Credit Quality Indicators Commercial | The following table presents the commercial loan portfolio, segregated by category of credit quality indicator: (Dollars in thousands) Pass Special Mention Classified Mar 31, Dec 31, Mar 31, Dec 31, Mar 31, Dec 31, Commercial: Commercial real estate $1,441,182 $1,387,666 $17,778 $205 $4,722 $4,537 Commercial & industrial 571,489 559,019 27,073 50,426 12,046 11,259 Total commercial $2,012,671 $1,946,685 $44,851 $50,631 $16,768 $15,796 |
Credit Quality Indicators Residential & Consumer | The following table presents the residential and consumer loan portfolios, segregated by loan type and credit quality indicator: (Dollars in thousands) Current Past Due Mar 31, Dec 31, Mar 31, Dec 31, Residential Real Estate: Self-originated mortgages $1,240,306 $1,238,402 $9,751 $9,079 Purchased mortgages 107,917 111,465 1,098 1,441 Total residential real estate $1,348,223 $1,349,867 $10,849 $10,520 Consumer: Home equity $277,027 $278,637 $2,911 $1,989 Other 25,156 26,202 13 33 Total consumer $302,183 $304,839 $2,924 $2,022 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 : (Dollars in thousands) Commercial Consumer CRE (1) C&I (2) Total Commercial Residential Real Estate Home Equity Other Total Consumer Total Beginning Balance $15,381 $5,847 $21,228 $3,987 $1,603 $254 $1,857 $27,072 Charge-offs — (14 ) (14 ) — (61 ) (28 ) (89 ) (103 ) Recoveries — 8 8 — 13 4 17 25 Provision 1,810 (1,343 ) 467 22 34 127 161 650 Ending Balance $17,191 $4,498 $21,689 $4,009 $1,589 $357 $1,946 $27,644 (1) Commercial real estate loans. (2) Commercial & industrial loans. The following table presents the activity in the allowance for loan losses for the three months ended March 31, 2018 : (Dollars in thousands) Commercial Consumer CRE (1) C&I (2) Total Commercial Residential Real Estate Home Equity Other Total Consumer Total Beginning Balance $12,729 $5,580 $18,309 $5,427 $2,412 $340 $2,752 $26,488 Charge-offs (627 ) (6 ) (633 ) — (35 ) (22 ) (57 ) (690 ) Recoveries 25 29 54 — 7 5 12 66 Provision (308 ) 268 (40 ) 67 (192 ) 165 (27 ) — Ending Balance $11,819 $5,871 $17,690 $5,494 $2,192 $488 $2,680 $25,864 (1) Commercial real estate loans. (2) Commercial & industrial loans. |
Schedule of Allowance for Loan Loss by Segment & Impairment Methodology | The following table presents the Corporation’s loan portfolio and associated allowance for loan losses by portfolio segment and by impairment methodology: (Dollars in thousands) March 31, 2019 December 31, 2018 Loans Related Allowance Loans Related Allowance Loans Individually Evaluated for Impairment Commercial: Commercial real estate $926 $— $925 $— Commercial & industrial 4,626 — 4,714 — Total commercial 5,552 — 5,639 — Residential Real Estate: Residential real estate 10,394 98 9,710 100 Consumer: Home equity 1,408 111 1,445 24 Other 20 1 22 3 Total consumer 1,428 112 1,467 27 Subtotal 17,374 210 16,816 127 Loans Collectively Evaluated for Impairment Commercial: Commercial real estate 1,462,756 17,191 1,391,483 15,381 Commercial & industrial 605,982 4,498 615,990 5,847 Total commercial 2,068,738 21,689 2,007,473 21,228 Residential Real Estate: Residential real estate 1,348,678 3,911 1,350,677 3,887 Consumer: Home equity 278,530 1,478 279,182 1,579 Other 25,149 356 26,212 251 Total consumer 303,679 1,834 305,394 1,830 Subtotal 3,721,095 27,434 3,663,544 26,945 Total $3,738,469 $27,644 $3,680,360 $27,072 |
Federal Home Loan Bank Advance
Federal Home Loan Bank Advance (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Federal Home Loan Bank Advances Maturities | The following table presents maturities and weighted average interest rates on FHLB advances outstanding as of March 31, 2019 : (Dollars in thousands) Scheduled Weighted Average Rate April 1, 2019 to December 31, 2019 $822,665 2.63 % 2020 77,033 2.10 2021 86,222 2.73 2022 55,447 3.65 2023 9,428 4.01 2024 and thereafter 5,334 5.06 Balance at March 31, 2019 $1,056,129 2.68 % |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 Total Capital (to Risk-Weighted Assets): Corporation $467,260 12.59 % $296,925 8.00 % N/A N/A Bank 463,549 12.49 296,892 8.00 $371,115 10.00 % Tier 1 Capital (to Risk-Weighted Assets): Corporation 439,374 11.84 222,694 6.00 N/A N/A Bank 435,663 11.74 222,669 6.00 296,892 8.00 Common Equity Tier 1 Capital (to Risk-Weighted Assets): Corporation 417,376 11.25 167,020 4.50 N/A N/A Bank 435,663 11.74 167,002 4.50 241,225 6.50 Tier 1 Capital (to Average Assets): (1) Corporation 439,374 8.69 202,274 4.00 N/A N/A Bank 435,663 8.62 202,213 4.00 252,767 5.00 December 31, 2018 Total Capital (to Risk-Weighted Assets): Corporation 455,699 12.56 290,146 8.00 N/A N/A Bank 453,033 12.49 290,128 8.00 362,660 10.00 Tier 1 Capital (to Risk-Weighted Assets): Corporation 428,338 11.81 217,609 6.00 N/A N/A Bank 425,672 11.74 217,596 6.00 290,128 8.00 Common Equity Tier 1 Capital (to Risk-Weighted Assets): Corporation 406,340 11.20 163,207 4.50 N/A N/A Bank 425,672 11.74 163,197 4.50 235,729 6.50 Tier 1 Capital (to Average Assets): (1) Corporation 428,338 8.89 192,690 4.00 N/A N/A Bank 425,672 8.84 192,652 4.00 240,815 5.00 (1) Leverage ratio. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 Unaudited Consolidated Balance Sheets: (Dollars in thousands) Asset Derivatives Liability Derivatives Fair Value Fair Value Balance Sheet Location Mar 31, 2019 Dec 31, 2018 Balance Sheet Location Mar 31, 2019 Dec 31, 2018 Derivatives Designated as Cash Flow Hedging Instruments: Interest rate risk management contracts: Interest rate caps Other assets $3 $20 Other liabilities $— $— Interest rate swaps Other assets 291 903 Other liabilities — — Interest rate floors Other assets 16 37 Other liabilities — — Derivatives not Designated as Hedging Instruments: Loan related derivative contracts: Interest rate swaps with customers Other assets 11,176 5,340 Other liabilities 2,952 7,719 Mirror swaps with counterparties Other assets 2,897 7,592 Other liabilities 11,236 5,392 Risk participation agreements Other assets — — Other liabilities 1 — Foreign exchange contracts Other assets 8 — Other liabilities — 7 Forward loan commitments: Interest rate lock commitments Other assets 1,491 806 Other liabilities — — Forward sale commitments Other assets — — Other liabilities 818 816 Gross amounts 15,882 14,698 15,007 13,934 Less amounts offset in Consolidated Balance Sheets (1) 1,899 10,732 1,899 10,732 Net amounts presented in Consolidated Balance Sheets 13,983 3,966 13,108 3,202 Less collateral pledged (2) — — 9,569 1,460 Net amounts $13,983 $3,966 $3,539 $1,742 (1) Interest rate risk management contracts and loan related derivative contracts with counterparties are subject to master netting arrangements. (2) Collateral pledged to derivative counterparties is in the form of cash. Washington Trust may need to post additional collateral in the future in proportion to potential increases in unrealized loss positions. |
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 Unaudited Consolidated Statements of Changes in Shareholders’ Equity and Unaudited Consolidated Statements of Income: (Dollars in thousands) Gain (Loss) Recognized in Other Comprehensive Income, Net of Tax Three months ended March 31, 2019 2018 Derivatives Designated as Cash Flow Hedging Instruments: Interest rate risk management contracts: Interest rate caps $— $38 Interest rate swaps (466 ) 839 Interest rate floors 24 12 Total ($442 ) $889 See Note 15 for additional disclosure pertaining to the amounts reclassified from accumulated other comprehensive income into earnings for derivatives designated as cash flow hedging instruments. (Dollars in thousands) Amount of Gain (Loss) Recognized in Income on Derivatives Three months ended March 31, Statement of Income Location 2019 2018 Derivatives not Designated as Hedging Instruments: Loan related derivative contracts: Interest rate swaps with customers Loan related derivative income $10,310 ($9,195 ) Mirror swaps with counterparties Loan related derivative income (9,604 ) 9,324 Risk participation agreements Loan related derivative income — — Foreign exchange contracts Loan related derivative income 18 12 Forward loan commitments: Interest rate lock commitments Mortgage banking revenues 685 (14 ) Forward sale commitments Mortgage banking revenues (429 ) 1,318 Total $980 $1,445 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value of Mortgage Loans Held for Sale | The following table presents a summary of mortgage loans held for sale accounted for under the fair value option: (Dollars in thousands) March 31, December 31, Aggregate fair value $14,608 $20,996 Aggregate principal balance 14,244 20,498 Difference between fair value and principal balance $364 $498 |
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) March 31, 2019 Assets: Available for sale debt securities: Obligations of U.S. government-sponsored enterprises $245,472 $— $245,472 $— Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 723,505 — 723,505 — Obligations of states and political subdivisions 937 — 937 — Individual name issuer trust preferred debt securities 12,370 — 12,370 — Corporate bonds 12,597 — 12,597 — Mortgage loans held for sale 14,608 — 14,608 — Derivative assets 13,983 — 13,983 — Total assets at fair value on a recurring basis $1,023,472 $— $1,023,472 $— Liabilities: Derivative liabilities $13,108 $— $13,108 $— Total liabilities at fair value on a recurring basis $13,108 $— $13,108 $— (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2018 Assets: Available for sale debt securities: Obligations of U.S. government-sponsored enterprises $242,683 $— $242,683 $— Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 660,793 — 660,793 — Obligations of states and political subdivisions 937 — 937 — Individual name issuer trust preferred debt securities 11,772 — 11,772 — Corporate bonds 11,625 — 11,625 — Mortgage loans held for sale 20,996 — 20,996 — Derivative assets 3,966 — 3,966 — Total assets at fair value on a recurring basis $952,772 $— $952,772 $— Liabilities: Derivative liabilities $3,202 $— $3,202 $— Total liabilities at fair value on a recurring basis $3,202 $— $3,202 $— |
Items Recorded at Fair Value on a Nonrecurring Basis | The following table presents the carrying value of assets held at December 31, 2018 , which were written down to fair value during the year ended December 31, 2018 : (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Collateral dependent impaired loans $883 $— $— $883 Property acquired through foreclosure or repossession 2,142 — — 2,142 Total assets at fair value on a nonrecurring basis $3,025 $— $— $3,025 |
Quantitative Information About Level 3 Assets Measured at Fair Value on a Nonrecurring Basis | The following tables present valuation techniques and unobservable inputs for assets measured at fair value on a nonrecurring basis for which the Corporation has utilized Level 3 inputs to determine fair value: (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range of Inputs Utilized (Weighted Average) March 31, 2019 Collateral dependent impaired loans $— Appraisals of collateral Appraisal adjustments (1) 100% (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, 2018 Collateral dependent impaired loans $883 Appraisals of collateral Discount for costs to sell 0% - 10% (10%) Appraisal adjustments (1) 0% - 100% (2%) Property acquired through foreclosure or repossession $2,142 Appraisals of collateral Discount for costs to sell 13% Appraisal adjustments (1) 12% - 28% (20%) (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 estimated fair values and related carrying amounts for financial instruments for which fair value is only disclosed are presented below as of the periods indicated. The tables exclude financial instruments for which the carrying value approximates fair value such as cash and cash equivalents, FHLB stock, accrued interest receivable, bank-owned life insurance, non-maturity deposits and accrued interest payable. (Dollars in thousands) March 31, 2019 Carrying Amount Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Financial Assets: Loans, net of allowance for loan losses $3,710,825 $3,664,361 $— $— $3,664,361 Financial Liabilities: Time deposits $1,276,464 $1,292,947 $— $1,292,947 $— FHLB advances 1,056,129 1,058,936 — 1,058,936 — Junior subordinated debentures 22,681 19,363 — 19,363 — (Dollars in thousands) December 31, 2018 Carrying Amount Total Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Financial Assets: Held to maturity debt securities $10,415 $10,316 $— $10,316 $— Loans, net of allowance for loan losses 3,653,288 3,598,025 — — 3,598,025 Financial Liabilities: Time deposits $1,255,108 $1,269,433 $— $1,269,433 $— FHLB advances 950,722 950,691 — 950,691 — Junior subordinated debentures 22,681 19,226 — 19,226 — |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes total revenues as presented in the Unaudited Consolidated Statements of Income and the related amounts which are from contracts with customers within the scope of Topic 606. As shown below, a substantial portion of our revenues are specifically excluded from the scope of Topic 606. For the three months ended March 31, 2019 2018 (Dollars in thousands) As reported in Consolidated Statements of Income Revenue from contracts in scope of Topic 606 As reported in Consolidated Statements of Income Revenue from contracts in scope of Topic 606 Net interest income $34,584 $— $31,852 $— Noninterest income: Asset-based wealth management revenues 8,921 8,921 9,955 9,955 Transaction-based wealth management revenues 331 331 318 318 Total wealth management revenues 9,252 9,252 10,273 10,273 Mortgage banking revenues 2,646 — 2,838 — Card interchange fees 997 997 847 847 Service charges on deposit accounts 875 875 863 863 Loan related derivative income 724 — 141 — Income from bank-owned life insurance 649 — 515 — Other income 224 224 266 266 Total noninterest income 15,367 11,348 15,743 12,249 Total revenues $49,951 $11,348 $47,595 $12,249 The following table presents revenue from contracts with customers based on the timing of revenue recognition: (Dollars in thousands) Three months ended March 31, 2019 2018 Revenue recognized at a point in time: Card interchange fees $997 $847 Service charges on deposit accounts 662 672 Other income 179 226 Revenue recognized over time: Wealth management revenues 9,252 10,273 Service charges on deposit accounts 213 191 Other income 45 40 Total revenues from contracts in scope of Topic 606 $11,348 $12,249 |
Defined Benefit Pension Plans (
Defined Benefit Pension Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Components of Net Periodic Benefit Cost | The following table presents components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss), on a pre-tax basis: (Dollars in thousands) Qualified Pension Plan Non-Qualified Retirement Plans Three months ended March 31, 2019 2018 2019 2018 Net Periodic Benefit Cost: Service cost (1) $509 $561 $31 $27 Interest cost (2) 742 679 141 119 Expected return on plan assets (2) (1,124 ) (1,318 ) — — Amortization of prior service credit (2) (4 ) (6 ) — — Recognized net actuarial loss (2) 198 374 102 102 Net periodic benefit cost $321 $290 $274 $248 (1) Included in salaries and employee benefits expense in the Unaudited Consolidated Statements of Income. (2) Included in other expenses in the Unaudited Consolidated Statements of Income. |
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 For the three months ended March 31, 2019 2018 2019 2018 Measurement date Dec 31, 2018 Dec 31, 2017 Dec 31, 2018 Dec 31, 2017 Equivalent single discount rate for benefit obligations 4.38% 3.69% 4.28% 3.58% Equivalent single discount rate for service cost 4.44 3.76 4.48 3.79 Equivalent single discount rate for interest cost 4.12 3.42 3.98 3.22 Expected long-term return on plan assets 5.75 6.75 N/A N/A Rate of compensation increase 3.75 3.75 3.75 3.75 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Statement of Operations and Total Assets by Reportable Segment | The following table presents the statement of operations and total assets for Washington Trust’s reportable segments: (Dollars in thousands) Commercial Banking Wealth Management Services Corporate Consolidated Total Three months ended March 31, 2019 2018 2019 2018 2019 2018 2019 2018 Net interest income (expense) $27,302 $25,976 ($127 ) ($58 ) $7,409 $5,934 $34,584 $31,852 Provision for loan losses 650 — — — — — 650 — Net interest income (expense) after provision for loan losses 26,652 25,976 (127 ) (58 ) 7,409 5,934 33,934 31,852 Noninterest income 5,455 4,936 9,252 10,273 660 534 15,367 15,743 Noninterest expenses: Depreciation and amortization expense 672 637 365 396 40 42 1,077 1,075 Other noninterest expenses 15,758 15,466 6,478 7,199 3,651 3,390 25,887 26,055 Total noninterest expenses 16,430 16,103 6,843 7,595 3,691 3,432 26,964 27,130 Income before income taxes 15,677 14,809 2,282 2,620 4,378 3,036 22,337 20,465 Income tax expense 3,421 3,103 617 643 804 508 4,842 4,254 Net income $12,256 $11,706 $1,665 $1,977 $3,574 $2,528 $17,495 $16,211 Total assets at period end $3,884,052 $3,521,309 $76,657 $66,567 $1,194,020 $978,450 $5,154,729 $4,566,326 Expenditures for long-lived assets 1,300 598 292 154 63 59 1,655 811 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Activity in Other Comprehensive Income (Loss) | The following tables present the activity in other comprehensive income (loss): Three months ended March 31, 2019 2018 (Dollars in thousands) Pre-tax Amounts Income Taxes Net of Tax Pre-tax Amounts Income Taxes Net of Tax Securities available for sale: Changes in fair value of available for sale debt securities $14,406 $3,385 $11,021 ($13,613 ) ($3,199 ) ($10,414 ) Net gains on debt securities reclassified into earnings — — — — — — Net change in fair value of available for sale debt securities 14,406 3,385 11,021 (13,613 ) (3,199 ) (10,414 ) Cash flow hedges: Change in fair value of cash flow hedges (546 ) (128 ) (418 ) 803 91 712 Net cash flow hedge losses reclassified into earnings (1) (31 ) (7 ) (24 ) 231 54 177 Net change in fair value of cash flow hedges (577 ) (135 ) (442 ) 1,034 145 889 Defined benefit plan obligations: Amortization of net actuarial losses (2) 300 70 230 476 112 364 Amortization of net prior service credits (2) (4 ) (1 ) (3 ) (6 ) (2 ) (4 ) Net change in defined benefit plan obligations 296 69 227 470 110 360 Total other comprehensive income (loss) $14,125 $3,319 $10,806 ($12,109 ) ($2,944 ) ($9,165 ) (1) The pre-tax amounts are included in interest expense on FHLB advances, interest expense on junior subordinated debentures and interest and fees on loans in the Unaudited Consolidated Statements of Income. (2) The pre-tax amounts are included in other expenses in the Unaudited 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 (Losses) Gains on Available For Sale Debt Securities Net Unrealized Gains (Losses) on Cash Flow Hedges Defined Benefit Pension Plan Adjustment Total Balance at December 31, 2018 ($16,762 ) $191 ($11,738 ) ($28,309 ) Other comprehensive income (loss) before reclassifications 11,021 (418 ) — 10,603 Amounts reclassified from accumulated other comprehensive income — (24 ) 227 203 Net other comprehensive income (loss) 11,021 (442 ) 227 10,806 Balance at March 31, 2019 ($5,741 ) ($251 ) ($11,511 ) ($17,503 ) (Dollars in thousands) Net Unrealized Losses on Available For Sale Debt Securities Net Unrealized (Losses) Gains on Cash Flow Hedges Defined Benefit Pension Plan Adjustment Total Balance at December 31, 2017 ($7,534 ) ($428 ) ($15,548 ) ($23,510 ) Other comprehensive (loss) income before reclassifications (10,414 ) 712 — (9,702 ) Amounts reclassified from accumulated other comprehensive income — 177 360 537 Net other comprehensive (loss) income (10,414 ) 889 360 (9,165 ) Balance at March 31, 2018 ($17,948 ) $461 ($15,188 ) ($32,675 ) |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Calculation of Earnings Per Share | The following table presents the calculation of earnings per common share: (Dollars and shares in thousands, except per share amounts) Three months ended March 31, 2019 2018 Earnings per common share - basic: Net income $17,495 $16,211 Less dividends and undistributed earnings allocated to participating securities (34 ) (38 ) Net income available to common shareholders $17,461 $16,173 Weighted average common shares 17,304 17,234 Earnings per common share - basic $1.01 $0.94 Earnings per common share - diluted: Net income $17,495 $16,211 Less dividends and undistributed earnings allocated to participating securities (34 ) (38 ) Net income available to common shareholders $17,461 $16,173 Weighted average common shares 17,304 17,234 Dilutive effect of common stock equivalents 97 111 Weighted average diluted common shares 17,401 17,345 Earnings per common share - diluted $1.00 $0.93 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of remaining operating lease payments, inclusive of renewal options | The following table presents the minimum annual lease payments under the terms of these leases, inclusive of renewal options that the Corporation is reasonably certain to renew, at March 31, 2019 : (Dollars in thousands) April 1, 2019 to December 31, 2019 $2,665 2020 3,433 2021 3,270 2022 3,123 2023 2,991 2024 and thereafter 24,318 Total operating lease payments (1) 39,800 Less interest 9,613 Present value of operating lease liabilities (2) $30,187 (1) Includes $4.7 million related to options to extend lease terms that are reasonably certain of being exercised. (2) Includes short-term operating lease liabilities of $2.5 million . |
Schedule of total lease expense | The following table presents the components of total lease expense and operating cash flows: (Dollars in thousands) Three months ended March 31, 2019 Lease Expense: Operating lease expense $928 Variable lease expense 11 Total lease expense (1) $939 Cash Paid: Cash paid reducing operating lease liabilities $920 (1) Included in net occupancy expenses in the Unaudited Consolidated Income Statement. |
Schedule of future minimum lease payments | The following table presents the minimum annual lease payments under the terms of these leases, exclusive of renewal provisions at December 31, 2018 : (Dollars in thousands) Years ending December 31: 2019 $3,544 2020 2,980 2021 2,677 2022 2,293 2023 2,059 2024 and thereafter 22,648 Total minimum lease payments $36,201 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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) Mar 31, Dec 31, Financial instruments whose contract amounts represent credit risk: Commitments to extend credit: Commercial loans $502,781 $533,884 Home equity lines 278,477 270,462 Other loans 48,750 46,698 Standby letters of credit 8,469 7,706 Financial instruments whose notional amounts exceed the amount of credit risk: Forward loan commitments: Interest rate lock commitments 64,104 30,766 Forward sale commitments 94,640 61,993 Loan related derivative contracts: Interest rate swaps with customers 671,492 648,050 Mirror swaps with counterparties 671,492 648,050 Risk participation-in agreements 46,357 46,510 Foreign exchange contracts 2,726 2,784 Interest rate risk management contracts: Interest rate swaps 60,000 60,000 |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Operating lease right-of-use assets | $ 28,923 | $ 28,249 | $ 0 | |||
Operating lease liabilities | 30,853 | 30,187 | [1] | 0 | ||
Rent-related liabilities | 2,900 | |||||
Cumulative effect on retained earnings, tax | 222 | |||||
Cumulative effect on retained earnings, net of tax | 722 | 722 | ||||
Held to maturity debt securities, at amortized cost | 0 | 10,415 | ||||
Held to maturity debt securities, fair value | 0 | 10,316 | ||||
Unrealized losses on held to maturity securities, net of tax | $ (17,503) | $ (28,309) | $ (32,675) | $ (23,510) | ||
Adjustments for Change in Accounting Principle [Domain] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Held to maturity debt securities, at amortized cost | 10,415 | |||||
Held to maturity debt securities, fair value | 10,316 | |||||
Unrealized losses on held to maturity securities, net of tax | $ (75) | |||||
[1] | Includes short-term operating lease liabilities of $2.5 million. |
Cash and Due from Banks (Narrat
Cash and Due from Banks (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Abstract] | ||
Average reserve deposited with the Board of Governors of the Federal Reserve Bank | $ 25.7 | $ 21.6 |
Interest-bearing deposits in other banks | $ 38.5 | $ 33.7 |
Securities (Narrative) (Details
Securities (Narrative) (Details) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2019USD ($)security | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($)security | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | |||||
Held to maturity debt securities, at amortized cost | $ 0 | $ 10,415 | |||
Held to maturity debt securities, fair value | 0 | 10,316 | |||
Unrealized losses on held to maturity securities, net of tax | (17,503) | (28,309) | $ (32,675) | $ (23,510) | |
Fair value of available for sale and held to maturity securities pledged as collateral | 497,500 | $ 439,700 | |||
Amortized cost of callable debt securities | 273,400 | ||||
Fair value of callable debt securities | $ 269,800 | ||||
Number of securities in a continuous unrealized loss position total | security | 73 | 90 | |||
Unrealized losses of securities in a continuous unrealized loss position total | $ (12,538) | $ (24,396) | |||
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 | 5 | 5 | |||
Securities in unrealized loss position, number of companies issuing securities | security | 4 | ||||
Amortized cost of trust preferred securities of individual name issuers that are below investment grade | $ 6,100 | ||||
Unrealized losses of trust preferred securities of individual name issuers that are below investment grade | 446 | ||||
Unrealized losses of securities in a continuous unrealized loss position total | $ (941) | $ (1,535) | |||
Corporate bonds [Member] | |||||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | |||||
Number of securities in a continuous unrealized loss position total | security | 7 | 8 | |||
Unrealized losses of securities in a continuous unrealized loss position total | $ (1,323) | $ (1,777) | |||
Minimum [Member] | |||||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | |||||
Maturity period of callable debt securities | 2 months | ||||
Call features of callable debt securities | 1 month | ||||
Maximum [Member] | |||||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | |||||
Maturity period of callable debt securities | 18 years | ||||
Call features of callable debt securities | 4 years | ||||
Adjustments for Change in Accounting Principle [Domain] | |||||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | |||||
Held to maturity debt securities, at amortized cost | $ 10,415 | ||||
Held to maturity debt securities, fair value | 10,316 | ||||
Unrealized losses on held to maturity securities, net of tax | $ (75) |
Securities (Summary of Investme
Securities (Summary of Investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Available for sale debt securities amortized cost basis | $ 1,002,385 | $ 949,720 |
Available for sale debt securities unrealized gains | 5,034 | 2,387 |
Available for sale debt securities unrealized losses | (12,538) | (24,297) |
Available for sale debt securities, at fair value | 994,881 | 927,810 |
Held to maturity debt securities | 0 | 10,415 |
Held to maturity debt securities unrealized gains | 0 | |
Held to maturity debt securities unrealized losses | (99) | |
Held to maturity debt securities, fair value | 0 | 10,316 |
Total securities amortized cost | 1,002,385 | 960,135 |
Total securities unrealized gains | 5,034 | 2,387 |
Total securities unrealized losses | (12,538) | (24,396) |
Total securities fair value | 994,881 | 938,126 |
Obligations of U.S. government-sponsored enterprises [Member] | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Available for sale debt securities amortized cost basis | 246,717 | 246,708 |
Available for sale debt securities unrealized gains | 682 | 442 |
Available for sale debt securities unrealized losses | (1,927) | (4,467) |
Available for sale debt securities, at fair value | 245,472 | 242,683 |
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 debt securities amortized cost basis | 727,511 | 675,368 |
Available for sale debt securities unrealized gains | 4,341 | 1,943 |
Available for sale debt securities unrealized losses | (8,347) | (16,518) |
Available for sale debt securities, at fair value | 723,505 | 660,793 |
Held to maturity debt securities | 10,415 | |
Held to maturity debt securities unrealized gains | 0 | |
Held to maturity debt securities unrealized losses | (99) | |
Held to maturity debt securities, fair value | 10,316 | |
Obligations of states and political subdivisions [Member] | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Available for sale debt securities amortized cost basis | 935 | 935 |
Available for sale debt securities unrealized gains | 2 | 2 |
Available for sale debt securities unrealized losses | 0 | 0 |
Available for sale debt securities, at fair value | 937 | 937 |
Individual name issuer trust preferred debt securities | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Available for sale debt securities amortized cost basis | 13,311 | 13,307 |
Available for sale debt securities unrealized gains | 0 | 0 |
Available for sale debt securities unrealized losses | (941) | (1,535) |
Available for sale debt securities, at fair value | 12,370 | 11,772 |
Corporate bonds [Member] | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Available for sale debt securities amortized cost basis | 13,911 | 13,402 |
Available for sale debt securities unrealized gains | 9 | 0 |
Available for sale debt securities unrealized losses | (1,323) | (1,777) |
Available for sale debt securities, at fair value | $ 12,597 | $ 11,625 |
Securities (Securities by Contr
Securities (Securities by Contractual Maturity) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | |
Available for sale debt securities maturities within 1 year amortized cost | $ 74,364 |
Available for sale debt securities maturities 1-5 years amortized cost | 345,082 |
Available for sale debt securities maturities 5-10 years amortized cost | 351,603 |
Available for sale debt securities maturities after 10 years amortized cost | 231,336 |
Available for sale debt securities maturities total amortized cost | 1,002,385 |
Available for sale debt securities maturities within 1 year fair value | 73,944 |
Available for sale debt securities maturities 1-5 years fair value | 343,090 |
Available for sale debt securities maturities 5-10 years fair value | 348,484 |
Available for sale debt securities maturities after 10 years fair value | 229,363 |
Available for sale debt securities fair value | $ 994,881 |
Securities (Securities in a Con
Securities (Securities in a Continuous Unrealized Loss Position) (Details) $ in Thousands | Mar. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities in a continuous unrealized loss position for less than 12 months | security | 0 | 13 |
Fair value of securities in a continuous unrealized loss position for less than 12 months | $ 0 | $ 48,258 |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | $ 0 | $ (448) |
Number of securities in a continuous unrealized loss position for 12 months or longer | security | 73 | 77 |
Fair value of securities in a continuous unrealized loss position for 12 months or longer | $ 573,191 | $ 617,932 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | $ (12,538) | $ (23,948) |
Number of securities in a continuous unrealized loss position total | security | 73 | 90 |
Fair value of securities in a continuous unrealized loss position total | $ 573,191 | $ 666,190 |
Unrealized losses of securities in a continuous unrealized loss position total | $ (12,538) | $ (24,396) |
Obligations of U.S. government-sponsored enterprises [Member] | ||
Debt Securities, Available-for-sale [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 | 14 | 16 |
Fair value of securities in a continuous unrealized loss position for 12 months or longer | $ 139,573 | $ 157,032 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | $ (1,927) | $ (4,467) |
Number of securities in a continuous unrealized loss position total | security | 14 | 16 |
Fair value of securities in a continuous unrealized loss position total | $ 139,573 | $ 157,032 |
Unrealized losses of securities in a continuous unrealized loss position total | $ (1,927) | $ (4,467) |
Mortgage-backed securities issued by U.S. government-sponsored agencies and U.S. government-sponsored enterprises [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities in a continuous unrealized loss position for less than 12 months | security | 0 | 10 |
Fair value of securities in a continuous unrealized loss position for less than 12 months | $ 0 | $ 47,060 |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | $ 0 | $ (439) |
Number of securities in a continuous unrealized loss position for 12 months or longer | security | 47 | 51 |
Fair value of securities in a continuous unrealized loss position for 12 months or longer | $ 409,374 | $ 438,701 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | $ (8,347) | $ (16,178) |
Number of securities in a continuous unrealized loss position total | security | 47 | 61 |
Fair value of securities in a continuous unrealized loss position total | $ 409,374 | $ 485,761 |
Unrealized losses of securities in a continuous unrealized loss position total | $ (8,347) | $ (16,617) |
Individual name issuer trust preferred debt securities | ||
Debt Securities, Available-for-sale [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 | 5 | 5 |
Fair value of securities in a continuous unrealized loss position for 12 months or longer | $ 12,370 | $ 11,772 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | $ (941) | $ (1,535) |
Number of securities in a continuous unrealized loss position total | security | 5 | 5 |
Fair value of securities in a continuous unrealized loss position total | $ 12,370 | $ 11,772 |
Unrealized losses of securities in a continuous unrealized loss position total | $ (941) | $ (1,535) |
Corporate bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities in a continuous unrealized loss position for less than 12 months | security | 0 | 3 |
Fair value of securities in a continuous unrealized loss position for less than 12 months | $ 0 | $ 1,198 |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | $ 0 | $ (9) |
Number of securities in a continuous unrealized loss position for 12 months or longer | security | 7 | 5 |
Fair value of securities in a continuous unrealized loss position for 12 months or longer | $ 11,874 | $ 10,427 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | $ (1,323) | $ (1,768) |
Number of securities in a continuous unrealized loss position total | security | 7 | 8 |
Fair value of securities in a continuous unrealized loss position total | $ 11,874 | $ 11,625 |
Unrealized losses of securities in a continuous unrealized loss position total | $ (1,323) | $ (1,777) |
Loans (Narrative) (Details)
Loans (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Loans Receivable Net Deferred Cost Originated | $ 4,900 | $ 4,700 |
Loans Receivable Net Deferred Premium on Purchased Loans | 668 | 703 |
Loans Pledged as Collateral | 2,000,000 | 2,000,000 |
Past due loans included in nonaccrual loans | 8,600 | 8,600 |
Mortgage Loans in Process of Foreclosure | $ 1,700 | $ 761 |
Loans (Summary of Loans) (Detai
Loans (Summary of Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | [1] | $ 3,738,469 | $ 3,680,360 |
Commercial Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | [2] | 1,463,682 | 1,392,408 |
Commercial & Industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | [3] | 610,608 | 620,704 |
Total Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 2,074,290 | 2,013,112 | |
Residential Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | [4] | 1,359,072 | 1,360,387 |
Home Equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 279,938 | 280,626 | |
Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | [5] | 25,169 | 26,235 |
Total Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 305,107 | $ 306,861 | |
[1] | Includes net unamortized loan origination costs of $4.9 million and $4.7 million, respectively, at March 31, 2019 and December 31, 2018 and net unamortized premiums on purchased loans of $668 thousand and $703 thousand, respectively, at March 31, 2019 and December 31, 2018. | ||
[2] | Consists of commercial mortgages primarily secured by income-producing property, as well as construction and development loans. Construction and development loans are made to businesses for land development or the on-site construction of industrial, commercial, or residential buildings. | ||
[3] | Consists of loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate. | ||
[4] | Consists of mortgage and homeowner construction loans secured by one- to four-family residential properties. | ||
[5] | Consists of loans to individuals secured by general aviation aircraft and other personal installment loans. |
Loans (Past Due Loans) (Details
Loans (Past Due Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | $ 14,700 | $ 13,622 | |
Current | 3,723,769 | 3,666,738 | |
Total loans | [1] | 3,738,469 | 3,680,360 |
30-59 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 7,733 | 7,787 | |
60-89 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 3,182 | 3,774 | |
Over 90 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 3,785 | 2,061 | |
Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 926 | 1,080 | |
Current | 1,462,756 | 1,391,328 | |
Total loans | [2] | 1,463,682 | 1,392,408 |
Commercial Real Estate | 30-59 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 155 | |
Commercial Real Estate | 60-89 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 925 | |
Commercial Real Estate | Over 90 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 926 | 0 | |
Commercial & Industrial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 1 | 0 | |
Current | 610,607 | 620,704 | |
Total loans | [3] | 610,608 | 620,704 |
Commercial & Industrial | 30-59 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 1 | 0 | |
Commercial & Industrial | 60-89 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Commercial & Industrial | Over 90 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Total Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 927 | 1,080 | |
Current | 2,073,363 | 2,012,032 | |
Total loans | 2,074,290 | 2,013,112 | |
Total Commercial | 30-59 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 1 | 155 | |
Total Commercial | 60-89 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 925 | |
Total Commercial | Over 90 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 926 | 0 | |
Residential Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 10,849 | 10,520 | |
Current | 1,348,223 | 1,349,867 | |
Total loans | [4] | 1,359,072 | 1,360,387 |
Residential Real Estate | 30-59 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 5,868 | 6,318 | |
Residential Real Estate | 60-89 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 2,749 | 2,693 | |
Residential Real Estate | Over 90 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 2,232 | 1,509 | |
Home Equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 2,911 | 1,989 | |
Current | 277,027 | 278,637 | |
Total loans | 279,938 | 280,626 | |
Home Equity | 30-59 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 1,851 | 1,281 | |
Home Equity | 60-89 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 433 | 156 | |
Home Equity | Over 90 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 627 | 552 | |
Other | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 13 | 33 | |
Current | 25,156 | 26,202 | |
Total loans | [5] | 25,169 | 26,235 |
Other | 30-59 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 13 | 33 | |
Other | 60-89 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Other | Over 90 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Total Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 2,924 | 2,022 | |
Current | 302,183 | 304,839 | |
Total loans | 305,107 | 306,861 | |
Total Consumer | 30-59 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 1,864 | 1,314 | |
Total Consumer | 60-89 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 433 | 156 | |
Total Consumer | Over 90 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | $ 627 | $ 552 | |
[1] | Includes net unamortized loan origination costs of $4.9 million and $4.7 million, respectively, at March 31, 2019 and December 31, 2018 and net unamortized premiums on purchased loans of $668 thousand and $703 thousand, respectively, at March 31, 2019 and December 31, 2018. | ||
[2] | Consists of commercial mortgages primarily secured by income-producing property, as well as construction and development loans. Construction and development loans are made to businesses for land development or the on-site construction of industrial, commercial, or residential buildings. | ||
[3] | Consists of loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate. | ||
[4] | Consists of mortgage and homeowner construction loans secured by one- to four-family residential properties. | ||
[5] | Consists of loans to individuals secured by general aviation aircraft and other personal installment loans. |
Loans (Impaired Loans) (Details
Loans (Impaired Loans) (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | $ 16,527,000 | $ 16,313,000 |
Recorded Investment of Impaired Loans with Related Allowance | [1] | 868,000 | 523,000 |
Total Recorded Investment of Impaired Loans | [1] | 17,395,000 | 16,836,000 |
Unpaid Principal of Impaired Loans with No Related Allowance | 16,866,000 | 16,713,000 | |
Unpaid Principal of Impaired Loans with Related Allowance | 893,000 | 570,000 | |
Total Unpaid Principal of Impaired Loans | 17,759,000 | 17,283,000 | |
No Related Allowance on Impaired Loans | 0 | 0 | |
Related Allowance on Impaired Loans | 210,000 | 127,000 | |
Commercial Real Estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 926,000 | 925,000 |
Recorded Investment of Impaired Loans with Related Allowance | [1] | 0 | 0 |
Unpaid Principal of Impaired Loans with No Related Allowance | 926,000 | 926,000 | |
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 | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 4,645,000 | 4,681,000 |
Recorded Investment of Impaired Loans with Related Allowance | [1] | 0 | 52,000 |
Unpaid Principal of Impaired Loans with No Related Allowance | 4,633,000 | 4,732,000 | |
Unpaid Principal of Impaired Loans with Related Allowance | 0 | 73,000 | |
No Related Allowance on Impaired Loans | 0 | 0 | |
Related Allowance on Impaired Loans | 0 | 0 | |
Total Commercial | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 5,571,000 | 5,606,000 |
Recorded Investment of Impaired Loans with Related Allowance | [1] | 0 | 52,000 |
Total Recorded Investment of Impaired Loans | [1] | 5,571,000 | 5,658,000 |
Unpaid Principal of Impaired Loans with No Related Allowance | 5,559,000 | 5,658,000 | |
Unpaid Principal of Impaired Loans with Related Allowance | 0 | 73,000 | |
Total Unpaid Principal of Impaired Loans | 5,559,000 | 5,731,000 | |
No Related Allowance on Impaired Loans | 0 | 0 | |
Related Allowance on Impaired Loans | 0 | 0 | |
Residential Real Estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 9,659,000 | 9,347,000 |
Recorded Investment of Impaired Loans with Related Allowance | [1] | 736,000 | 364,000 |
Total Recorded Investment of Impaired Loans | [1] | 10,395,000 | 9,711,000 |
Unpaid Principal of Impaired Loans with No Related Allowance | 10,010,000 | 9,695,000 | |
Unpaid Principal of Impaired Loans with Related Allowance | 762,000 | 390,000 | |
Total Unpaid Principal of Impaired Loans | 10,772,000 | 10,085,000 | |
No Related Allowance on Impaired Loans | 0 | 0 | |
Related Allowance on Impaired Loans | 98,000 | 100,000 | |
Home Equity | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 1,297,000 | 1,360,000 |
Recorded Investment of Impaired Loans with Related Allowance | [1] | 111,000 | 85,000 |
Unpaid Principal of Impaired Loans with No Related Allowance | 1,297,000 | 1,360,000 | |
Unpaid Principal of Impaired Loans with Related Allowance | 111,000 | 85,000 | |
No Related Allowance on Impaired Loans | 0 | 0 | |
Related Allowance on Impaired Loans | 111,000 | 24,000 | |
Other | |||
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] | 21,000 | 22,000 |
Unpaid Principal of Impaired Loans with No Related Allowance | 0 | 0 | |
Unpaid Principal of Impaired Loans with Related Allowance | 20,000 | 22,000 | |
No Related Allowance on Impaired Loans | 0 | 0 | |
Related Allowance on Impaired Loans | 1,000 | 3,000 | |
Total Consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 1,297,000 | 1,360,000 |
Recorded Investment of Impaired Loans with Related Allowance | [1] | 132,000 | 107,000 |
Total Recorded Investment of Impaired Loans | [1] | 1,429,000 | 1,467,000 |
Unpaid Principal of Impaired Loans with No Related Allowance | 1,297,000 | 1,360,000 | |
Unpaid Principal of Impaired Loans with Related Allowance | 131,000 | 107,000 | |
Total Unpaid Principal of Impaired Loans | 1,428,000 | 1,467,000 | |
No Related Allowance on Impaired Loans | 0 | 0 | |
Related Allowance on Impaired Loans | $ 112,000 | $ 27,000 | |
[1] | The recorded investment in impaired loans consists of unpaid principal balance, net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs. For accruing impaired 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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment of Impaired Loans | $ 17,317 | $ 20,253 |
Interest Income Recognized on Impaired Loans | 184 | 190 |
Commercial Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment of Impaired Loans | 976 | 4,100 |
Interest Income Recognized on Impaired Loans | 1 | 0 |
Commercial & Industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment of Impaired Loans | 4,689 | 5,492 |
Interest Income Recognized on Impaired Loans | 54 | 66 |
Total Commercial | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment of Impaired Loans | 5,665 | 9,592 |
Interest Income Recognized on Impaired Loans | 55 | 66 |
Residential Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment of Impaired Loans | 10,151 | 9,850 |
Interest Income Recognized on Impaired Loans | 115 | 112 |
Home Equity | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment of Impaired Loans | 1,480 | 667 |
Interest Income Recognized on Impaired Loans | 14 | 9 |
Other | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment of Impaired Loans | 21 | 144 |
Interest Income Recognized on Impaired Loans | 0 | 3 |
Total Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment of Impaired Loans | 1,501 | 811 |
Interest Income Recognized on Impaired Loans | $ 14 | $ 12 |
Loans (Nonaccrual Loans) (Detai
Loans (Nonaccrual Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 12,365 | $ 11,707 |
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 | 3,800 | 3,100 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 926 | 925 |
Commercial & Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 0 | 0 |
Total Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 926 | 925 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 10,032 | 9,346 |
Home Equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 1,407 | 1,436 |
Other Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 0 | 0 |
Total Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 1,407 | $ 1,436 |
Loans (Narrative - Troubled Deb
Loans (Narrative - Troubled Debt Restructurings) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Recorded investment in Troubled Debt Restructuring, Recorded Investment | $ 5,500 | $ 5,600 |
Specific Reserves on Troubled Debt Restructurings | $ 99 | $ 103 |
Loans Loans (Troubled Debt Rest
Loans Loans (Troubled Debt Restructurings Type of Modification) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)loan | Mar. 31, 2018USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of loans modified as a troubled debt restructuring | loan | 0 | 1 |
Troubled debt restructuring, pre-modification recorded investment | $ 0 | $ 608 |
Troubled debt restructuring, post-modification recorded investment | $ 0 | $ 608 |
Loans Loans (Troubled Debt Re_2
Loans Loans (Troubled Debt Restructurings Subsequent Default) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)loan | Mar. 31, 2018USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of loans modified as a troubled debt restructuring | 0 | 1 |
Payment Default [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans modified as a troubled debt restructuring | 0 | 0 |
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ | $ 0 | $ 0 |
Loans (Credit Quality Indicator
Loans (Credit Quality Indicators - Commercial) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Commercial Real Estate | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | $ 1,441,182 | $ 1,387,666 |
Commercial Real Estate | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 17,778 | 205 |
Commercial Real Estate | Classified [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 4,722 | 4,537 |
Commercial & Industrial | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 571,489 | 559,019 |
Commercial & Industrial | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 27,073 | 50,426 |
Commercial & Industrial | Classified [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 12,046 | 11,259 |
Total Commercial | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 2,012,671 | 1,946,685 |
Total Commercial | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | 44,851 | 50,631 |
Total Commercial | Classified [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans Receivable | $ 16,768 | $ 15,796 |
Loans (Credit Quality Indicat_2
Loans (Credit Quality Indicators - Residential, Consumer) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Current | $ 3,723,769 | $ 3,666,738 |
Total past due | 14,700 | 13,622 |
Self-originated Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 1,240,306 | 1,238,402 |
Total past due | 9,751 | 9,079 |
Purchased Mortgages | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 107,917 | 111,465 |
Total past due | 1,098 | 1,441 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 1,348,223 | 1,349,867 |
Total past due | 10,849 | 10,520 |
Home Equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 277,027 | 278,637 |
Total past due | 2,911 | 1,989 |
Other | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 25,156 | 26,202 |
Total past due | 13 | 33 |
Total Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Current | 302,183 | 304,839 |
Total past due | $ 2,924 | $ 2,022 |
Allowance for Loan Losses (All
Allowance for Loan Losses (Allowance for Loan Losses Rollforward Analysis) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance, Beginning Balance | $ 27,072 | $ 26,488 | |
Charge-offs | (103) | (690) | |
Recoveries | 25 | 66 | |
Provision | 650 | 0 | |
Allowance, Ending Balance | 27,644 | 25,864 | |
Commercial Real Estate | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance, Beginning Balance | [1] | 15,381 | 12,729 |
Charge-offs | [1] | 0 | (627) |
Recoveries | [1] | 0 | 25 |
Provision | [1] | 1,810 | (308) |
Allowance, Ending Balance | [1] | 17,191 | 11,819 |
Commercial & Industrial | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance, Beginning Balance | [2] | 5,847 | 5,580 |
Charge-offs | [2] | (14) | (6) |
Recoveries | [2] | 8 | 29 |
Provision | [2] | (1,343) | 268 |
Allowance, Ending Balance | [2] | 4,498 | 5,871 |
Total Commercial | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance, Beginning Balance | 21,228 | 18,309 | |
Charge-offs | (14) | (633) | |
Recoveries | 8 | 54 | |
Provision | 467 | (40) | |
Allowance, Ending Balance | 21,689 | 17,690 | |
Residential Real Estate | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance, Beginning Balance | 3,987 | 5,427 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision | 22 | 67 | |
Allowance, Ending Balance | 4,009 | 5,494 | |
Home Equity | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance, Beginning Balance | 1,603 | 2,412 | |
Charge-offs | (61) | (35) | |
Recoveries | 13 | 7 | |
Provision | 34 | (192) | |
Allowance, Ending Balance | 1,589 | 2,192 | |
Other | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance, Beginning Balance | 254 | 340 | |
Charge-offs | (28) | (22) | |
Recoveries | 4 | 5 | |
Provision | 127 | 165 | |
Allowance, Ending Balance | 357 | 488 | |
Total Consumer | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Allowance, Beginning Balance | 1,857 | 2,752 | |
Charge-offs | (89) | (57) | |
Recoveries | 17 | 12 | |
Provision | 161 | (27) | |
Allowance, Ending Balance | $ 1,946 | $ 2,680 | |
[1] | Commercial real estate loans. | ||
[2] | Commercial & industrial loans. |
Allowance for Loan Losses (Allo
Allowance for Loan Losses (Allowance for Loan Losses by Segment & Impairment Methodology) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans individually evaluated for impairment | $ 17,374 | $ 16,816 | |
Loans related allowance individually evaluated for impairment | 210 | 127 | |
Loans collectively evaluated for impairment | 3,721,095 | 3,663,544 | |
Loans related allowance collectively evaluated for impairment | 27,434 | 26,945 | |
Total loans | [1] | 3,738,469 | 3,680,360 |
Allowance | 27,644 | 27,072 | |
Commercial Real Estate | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans individually evaluated for impairment | 926 | 925 | |
Loans related allowance individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 1,462,756 | 1,391,483 | |
Loans related allowance collectively evaluated for impairment | 17,191 | 15,381 | |
Total loans | [2] | 1,463,682 | 1,392,408 |
Commercial & Industrial | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans individually evaluated for impairment | 4,626 | 4,714 | |
Loans related allowance individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 605,982 | 615,990 | |
Loans related allowance collectively evaluated for impairment | 4,498 | 5,847 | |
Total loans | [3] | 610,608 | 620,704 |
Total Commercial | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans individually evaluated for impairment | 5,552 | 5,639 | |
Loans related allowance individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 2,068,738 | 2,007,473 | |
Loans related allowance collectively evaluated for impairment | 21,689 | 21,228 | |
Total loans | 2,074,290 | 2,013,112 | |
Residential Real Estate | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans individually evaluated for impairment | 10,394 | 9,710 | |
Loans related allowance individually evaluated for impairment | 98 | 100 | |
Loans collectively evaluated for impairment | 1,348,678 | 1,350,677 | |
Loans related allowance collectively evaluated for impairment | 3,911 | 3,887 | |
Total loans | [4] | 1,359,072 | 1,360,387 |
Home Equity | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans individually evaluated for impairment | 1,408 | 1,445 | |
Loans related allowance individually evaluated for impairment | 111 | 24 | |
Loans collectively evaluated for impairment | 278,530 | 279,182 | |
Loans related allowance collectively evaluated for impairment | 1,478 | 1,579 | |
Total loans | 279,938 | 280,626 | |
Other | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans individually evaluated for impairment | 20 | 22 | |
Loans related allowance individually evaluated for impairment | 1 | 3 | |
Loans collectively evaluated for impairment | 25,149 | 26,212 | |
Loans related allowance collectively evaluated for impairment | 356 | 251 | |
Total loans | [5] | 25,169 | 26,235 |
Total Consumer | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Loans individually evaluated for impairment | 1,428 | 1,467 | |
Loans related allowance individually evaluated for impairment | 112 | 27 | |
Loans collectively evaluated for impairment | 303,679 | 305,394 | |
Loans related allowance collectively evaluated for impairment | 1,834 | 1,830 | |
Total loans | $ 305,107 | $ 306,861 | |
[1] | Includes net unamortized loan origination costs of $4.9 million and $4.7 million, respectively, at March 31, 2019 and December 31, 2018 and net unamortized premiums on purchased loans of $668 thousand and $703 thousand, respectively, at March 31, 2019 and December 31, 2018. | ||
[2] | Consists of commercial mortgages primarily secured by income-producing property, as well as construction and development loans. Construction and development loans are made to businesses for land development or the on-site construction of industrial, commercial, or residential buildings. | ||
[3] | Consists of loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate. | ||
[4] | Consists of mortgage and homeowner construction loans secured by one- to four-family residential properties. | ||
[5] | Consists of loans to individuals secured by general aviation aircraft and other personal installment loans. |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances (Narrative Federal Home Loan Bank Advances) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank, Advances, Branch of FHLBB Bank [Line Items] | ||
Federal Home Loan Bank advances | $ 1,056,129 | $ 950,722 |
Federal Home Loan Bank of Boston [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLBB Bank [Line Items] | ||
Federal Home Loan Bank advances | 1,056,129 | 950,722 |
Unused line of credit with FHLBB | 40,000 | 40,000 |
Unused remaining available borrowing capacity with FHLBB | $ 575,700 | $ 628,500 |
Federal Home Loan Bank Advanc_3
Federal Home Loan Bank Advances (Federal Home Loan Bank Advances Maturity Schedule) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank, Advances, Branch of FHLBB Bank [Line Items] | ||
Federal Home Loan Bank advances | $ 1,056,129 | $ 950,722 |
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 | $ 822,665 | |
Weighted average rate for scheduled maturity through the end of the current year | 2.63% | |
Scheduled maturity in year two | $ 77,033 | |
Weighted average rate for scheduled maturity in year two | 2.10% | |
Scheduled maturity in year three | $ 86,222 | |
Weighted average rate for scheduled maturity in year three | 2.73% | |
Scheduled maturity in year four | $ 55,447 | |
Weighted average rate for scheduled maturity in year four | 3.65% | |
Scheduled maturity in year five | $ 9,428 | |
Weighted average rate for scheduled maturity in year five | 4.01% | |
Scheduled maturity after year five | $ 5,334 | |
Weighted average rate for scheduled maturity after year five | 5.06% | |
Federal Home Loan Bank advances | $ 1,056,129 | $ 950,722 |
Total weighted average rate | 2.68% |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Stockholders' Equity [Abstract] | ||
Trust preferred securities included in Tier 1 Capital | $ 22 | $ 22 |
Shareholders' Equity (Regulator
Shareholders' Equity (Regulatory Captial Requirements) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Corporation [Member] | |||
Total Capital (to Risk-Weighted Assets): | |||
Total Capital | $ 467,260 | $ 455,699 | |
Total Capital to Risk-Weighted Assets | 12.59% | 12.56% | |
Total Capital for Capital Adequacy Purposes | $ 296,925 | $ 290,146 | |
Total Capital for Capital Adequacy Purposes to Risk-Weighted Assets | 8.00% | 8.00% | |
Tier 1 Capital (to Risk-Weighted Assets): | |||
Tier 1 Capital | $ 439,374 | $ 428,338 | |
Tier 1 Capital to Risk Weighted-Assets | 11.84% | 11.81% | |
Tier 1 Capital Required For Capital Adequacy Purposes | $ 222,694 | $ 217,609 | |
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 | $ 417,376 | $ 406,340 | |
Common Equity Tier 1 Capital to Risk Weighted Assets | 11.25% | 11.20% | |
Common Equity Tier 1 Capital Required for Capital Adequacy | $ 167,020 | $ 163,207 | |
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] | $ 439,374 | $ 428,338 |
Tier 1 Leverage Capital to Average Assets | [1] | 8.69% | 8.89% |
Tier 1 Leverage Capital Required for Capital Adequacy Purposes | [1] | $ 202,274 | $ 192,690 |
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 | $ 463,549 | $ 453,033 | |
Total Capital to Risk-Weighted Assets | 12.49% | 12.49% | |
Total Capital for Capital Adequacy Purposes | $ 296,892 | $ 290,128 | |
Total Capital for Capital Adequacy Purposes to Risk-Weighted Assets | 8.00% | 8.00% | |
Total Capital To Be Well Capitalized | $ 371,115 | $ 362,660 | |
Total Capital To Be Well Capitalized to Risk Weighted-Assets | 10.00% | 10.00% | |
Tier 1 Capital (to Risk-Weighted Assets): | |||
Tier 1 Capital | $ 435,663 | $ 425,672 | |
Tier 1 Capital to Risk Weighted-Assets | 11.74% | 11.74% | |
Tier 1 Capital Required For Capital Adequacy Purposes | $ 222,669 | $ 217,596 | |
Tier 1 Capital Required for Capital Adequacy Purposes to Risk Weighted-Assets | 6.00% | 6.00% | |
Tier 1 Capital Required To Be Well Capitalized | $ 296,892 | $ 290,128 | |
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 | $ 435,663 | $ 425,672 | |
Common Equity Tier 1 Capital to Risk Weighted Assets | 11.74% | 11.74% | |
Common Equity Tier 1 Capital Required for Capital Adequacy | $ 167,002 | $ 163,197 | |
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 | $ 241,225 | $ 235,729 | |
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] | $ 435,663 | $ 425,672 |
Tier 1 Leverage Capital to Average Assets | [1] | 8.62% | 8.84% |
Tier 1 Leverage Capital Required for Capital Adequacy Purposes | [1] | $ 202,213 | $ 192,652 |
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] | $ 252,767 | $ 240,815 |
Tier 1 Leverage Capital Required To Be Well Capitalized to Average Assets | [1] | 5.00% | 5.00% |
[1] | Leverage ratio. |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) $ in Thousands | Mar. 31, 2019USD ($)derivative_instrument | Dec. 31, 2018USD ($)derivative_instrument |
Interest rate swaps [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | $ 60,000 | $ 60,000 |
Interest rate swaps with customers [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 671,492 | 648,050 |
Mirror swaps with counterparties [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 671,492 | 648,050 |
Risk participation-in agreement [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 46,357 | 46,510 |
Foreign exchange contracts [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 2,726 | 2,784 |
Interest rate lock commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 64,104 | 30,800 |
Forward sale commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | $ 94,640 | $ 62,000 |
Derivatives Designated as Cash Flow Hedging Instruments [Member] | Interest rate caps [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Number of instruments held | derivative_instrument | 2 | 2 |
Notional amount | $ 22,700 | $ 22,700 |
Interest rate cap interest rate | 4.50% | 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 | 2 |
Notional amount | $ 60,000 | $ 60,000 |
Derivatives Designated as Cash Flow Hedging Instruments [Member] | Interest rate floors [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Number of instruments held | derivative_instrument | 3 | 3 |
Notional amount | $ 300,000 | $ 300,000 |
Interest rate floor interest rate | 1.00% | 1.00% |
Not Designated as Hedging Instrument [Member] | Interest rate swaps with customers [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | $ 671,500 | $ 648,000 |
Not Designated as Hedging Instrument [Member] | Mirror swaps with counterparties [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 671,500 | 648,000 |
Not Designated as Hedging Instrument [Member] | Risk participation-out agreement [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 57,000 | 57,300 |
Not Designated as Hedging Instrument [Member] | Risk participation-in agreement [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 46,400 | 46,500 |
Not Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | $ 2,700 | $ 2,800 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Fair Value of Derivatives by Balance Sheet Location) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Derivative Financial Instruments, Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Gross derivative positions | $ 15,882 | ||
Gross derivative positions | $ 14,698 | ||
Amounts offset in balance sheet | [1] | 1,899 | |
Amounts offset in balance sheet | [1] | 10,732 | |
Net amounts presented in balance sheet | 13,983 | ||
Net amounts presented in balance sheet | 3,966 | ||
Collateral pledged | [2] | 0 | |
Collateral pledged | [2] | 0 | |
Net amounts | 13,983 | 3,966 | |
Derivative Financial Instruments, Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Gross derivative positions | 15,007 | ||
Gross derivative positions | 13,934 | ||
Amounts offset in balance sheet | [1] | 1,899 | |
Amounts offset in balance sheet | [1] | 10,732 | |
Net amounts presented in balance sheet | 13,108 | ||
Net amounts presented in balance sheet | 3,202 | ||
Collateral pledged | [2] | 9,569 | |
Collateral pledged | [2] | 1,460 | |
Net amounts | 3,539 | 1,742 | |
Derivatives Designated as Cash Flow Hedging Instruments [Member] | Interest rate caps [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets designated as a cash flow hedge | 3 | 20 | |
Derivatives Designated as Cash Flow Hedging Instruments [Member] | Interest rate caps [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities designated as a cash flow hedge | 0 | 0 | |
Derivatives Designated as Cash Flow Hedging Instruments [Member] | Interest rate swaps [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets designated as a cash flow hedge | 291 | 903 | |
Derivatives Designated as Cash Flow Hedging Instruments [Member] | Interest rate swaps [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities designated as a cash flow hedge | 0 | 0 | |
Derivatives Designated as Cash Flow Hedging Instruments [Member] | Interest rate floors [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets designated as a cash flow hedge | 16 | 37 | |
Derivatives Designated as Cash Flow Hedging Instruments [Member] | Interest rate floors [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities designated as a cash flow hedge | 0 | 0 | |
Not Designated as Hedging Instrument [Member] | Interest rate swaps with customers [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets not designated | 11,176 | 5,340 | |
Not Designated as Hedging Instrument [Member] | Interest rate swaps with customers [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities not designated | 2,952 | 7,719 | |
Not Designated as Hedging Instrument [Member] | Mirror swaps with counterparties [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets not designated | 2,897 | 7,592 | |
Not Designated as Hedging Instrument [Member] | Mirror swaps with counterparties [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities not designated | 11,236 | 5,392 | |
Not Designated as Hedging Instrument [Member] | Risk participation agreements [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets not designated | 0 | 0 | |
Not Designated as Hedging Instrument [Member] | Risk participation agreements [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities not designated | 1 | 0 | |
Not Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets not designated | 8 | 0 | |
Not Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities not designated | 0 | 7 | |
Not Designated as Hedging Instrument [Member] | Interest rate lock commitments [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets not designated | 1,491 | 806 | |
Not Designated as Hedging Instrument [Member] | Interest rate lock commitments [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities not designated | 0 | 0 | |
Not Designated as Hedging Instrument [Member] | Forward sale commitments [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets not designated | 0 | 0 | |
Not Designated as Hedging Instrument [Member] | Forward sale commitments [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities not designated | $ 818 | $ 816 | |
[1] | Interest rate risk management contracts and loan related derivative contracts with counterparties are subject to master netting arrangements. | ||
[2] | Collateral pledged to derivative counterparties is in the form of cash. Washington Trust may need to post additional collateral in the future in proportion to potential increases in unrealized loss positions. |
Derivative Financial Instrume_5
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 | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net change in fair value of cash flow hedges | $ (442) | $ 889 |
Interest rate caps [Member] | Cash Flow Hedge [Member] | Other Comprehensive Income (Loss) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net change in fair value of cash flow hedges | 0 | 38 |
Interest rate swaps [Member] | Cash Flow Hedge [Member] | Other Comprehensive Income (Loss) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net change in fair value of cash flow hedges | (466) | 839 |
Interest rate floors [Member] | Cash Flow Hedge [Member] | Other Comprehensive Income (Loss) [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net change in fair value of cash flow hedges | $ 24 | $ 12 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Derivatives not Designated as Hedging Instruments, Effect in Statements of Income) (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | $ 980 | $ 1,445 |
Interest rate swaps with customers [Member] | Loan related derivative income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | 10,310 | (9,195) |
Mirror swaps with counterparties [Member] | Loan related derivative income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | (9,604) | 9,324 |
Risk participation agreements [Member] | Loan related derivative income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | 0 | 0 |
Foreign exchange contracts [Member] | Loan related derivative income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | 18 | 12 |
Interest rate lock commitments [Member] | Mortgage banking revenues [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | 685 | (14) |
Forward sale commitments [Member] | Mortgage banking revenues [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | $ (429) | $ 1,318 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | Aug. 01, 2015 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Payment of contingent consideration liability | $ 0 | $ 1,217 | |||
Contingent consideration liability | $ 0 | ||||
Recorded Investment of Impaired Loans with Related Allowance | [1] | 868 | 523 | ||
Nonrecurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Recorded Investment of Impaired Loans with Related Allowance | 0 | 883 | |||
Nonrecurring [Member] | Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Recorded Investment of Impaired Loans with Related Allowance | 0 | 883 | |||
Allowance For Loan Loss Allocation on Collateral Dependent Impaired Loans | $ 111 | $ 24 | |||
Contingent Consideration [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Earn-out period post acquisition | 5 years | ||||
[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 accruing impaired 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 (Fair V
Fair Value Measurements (Fair Value Mortgage Loans Held For Sale Disclosures) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Mortgage loans held for sale, measured at fair value | $ 14,608 | $ 20,996 | |
Mortgage loans held for sale, amortized cost | 14,244 | 20,498 | |
Mortgage loans held for sale, difference between fair value and amortized cost | 364 | $ 498 | |
Mortgage Loans Held for Sale [Member] | |||
Change in fair value under fair value option election | $ (135) | $ (329) |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities, at fair value | $ 994,881 | $ 927,810 |
Mortgage loans held for sale, measured at fair value | 14,608 | 20,996 |
Obligations of U.S. government-sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities, at fair value | 245,472 | 242,683 |
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 debt securities, at fair value | 723,505 | 660,793 |
Obligations of states and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities, at fair value | 937 | 937 |
Individual name issuer trust preferred debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities, at fair value | 12,370 | 11,772 |
Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities, at fair value | 12,597 | 11,625 |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale, measured at fair value | 14,608 | 20,996 |
Derivative assets | 13,983 | 3,966 |
Total assets at fair value on a recurring basis | 1,023,472 | 952,772 |
Derivative liabilities | 13,108 | 3,202 |
Total liabilities at fair value on a recurring basis | 13,108 | 3,202 |
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 debt securities, at fair value | 245,472 | 242,683 |
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 debt securities, at fair value | 723,505 | 660,793 |
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 debt securities, at fair value | 937 | 937 |
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 debt securities, at fair value | 12,370 | 11,772 |
Recurring [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities, at fair value | 12,597 | 11,625 |
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 |
Derivative assets | 0 | 0 |
Total assets at fair value on a recurring basis | 0 | 0 |
Derivative liabilities | 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 debt securities, at fair value | 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 debt securities, at fair value | 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 debt securities, at fair value | 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 debt securities, at fair value | 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 debt securities, at fair value | 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 | 14,608 | 20,996 |
Derivative assets | 13,983 | 3,966 |
Total assets at fair value on a recurring basis | 1,023,472 | 952,772 |
Derivative liabilities | 13,108 | 3,202 |
Total liabilities at fair value on a recurring basis | 13,108 | 3,202 |
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 debt securities, at fair value | 245,472 | 242,683 |
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 debt securities, at fair value | 723,505 | 660,793 |
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 debt securities, at fair value | 937 | 937 |
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 debt securities, at fair value | 12,370 | 11,772 |
Recurring [Member] | Level 2 [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities, at fair value | 12,597 | 11,625 |
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 |
Derivative assets | 0 | 0 |
Total assets at fair value on a recurring basis | 0 | 0 |
Derivative liabilities | 0 | 0 |
Total liabilities at fair value on a recurring basis | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Obligations of U.S. government-sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities, at fair value | 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 debt securities, at fair value | 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 debt securities, at fair value | 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 debt securities, at fair value | 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 debt securities, at fair value | $ 0 | $ 0 |
Fair Value Measurements (Asset
Fair Value Measurements (Asset and Liabilities Measured on a Nonrecurring Basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | [1] | $ 868 | $ 523 |
Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Carrying value of impaired loan written down to fair value | 103 | ||
Collateral dependent impaired loans | 0 | 883 | |
Property acquired through foreclosure or repossession | 2,142 | ||
Total assets at fair value on a nonrecurring basis | 3,025 | ||
Nonrecurring [Member] | Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 0 | ||
Property acquired through foreclosure or repossession | 0 | ||
Total assets at fair value on a nonrecurring basis | 0 | ||
Nonrecurring [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 0 | ||
Property acquired through foreclosure or repossession | 0 | ||
Total assets at fair value on a nonrecurring basis | 0 | ||
Nonrecurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | $ 0 | 883 | |
Property acquired through foreclosure or repossession | 2,142 | ||
Total assets at fair value on a nonrecurring basis | $ 3,025 | ||
[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 accruing impaired 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 | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Collateral dependent impaired loans | [1] | $ 868 | $ 523 |
Nonrecurring [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Collateral dependent impaired loans | 0 | 883 | |
Property acquired through foreclosure or repossession | 2,142 | ||
Nonrecurring [Member] | Level 3 [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Collateral dependent impaired loans | $ 0 | 883 | |
Property acquired through foreclosure or repossession | $ 2,142 | ||
Nonrecurring [Member] | Minimum [Member] | Appraisals Of Collateral [Member] | Level 3 [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Appraisal adjustments | [2] | 0.00% | |
Nonrecurring [Member] | Minimum [Member] | Collateral Dependent Impaired Loans [Member] | Appraisals Of Collateral [Member] | Level 3 [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Discount for costs to sell | 0.00% | 0.00% | |
Appraisal adjustments | [2] | 100.00% | |
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] (Deprecated 2018-01-31) | |||
Discount for costs to sell | 0.00% | 13.00% | |
Appraisal adjustments | [2] | 0.00% | 12.00% |
Nonrecurring [Member] | Maximum [Member] | Appraisals Of Collateral [Member] | Level 3 [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Appraisal adjustments | [2] | 100.00% | |
Nonrecurring [Member] | Maximum [Member] | Collateral Dependent Impaired Loans [Member] | Appraisals Of Collateral [Member] | Level 3 [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Discount for costs to sell | 0.00% | 10.00% | |
Appraisal adjustments | [2] | 100.00% | |
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] (Deprecated 2018-01-31) | |||
Discount for costs to sell | 0.00% | 13.00% | |
Appraisal adjustments | [2] | 0.00% | 28.00% |
Nonrecurring [Member] | Weighted Average [Member] | Appraisals Of Collateral [Member] | Level 3 [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Appraisal adjustments | [2] | 2.00% | |
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] (Deprecated 2018-01-31) | |||
Discount for costs to sell | 0.00% | 10.00% | |
Appraisal adjustments | [2] | 100.00% | |
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] (Deprecated 2018-01-31) | |||
Discount for costs to sell | 0.00% | 13.00% | |
Appraisal adjustments | [2] | 0.00% | 20.00% |
[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 accruing impaired 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 | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held to maturity debt securities | $ 0 | $ 10,415 |
Loans, net of allowance of loan losses | 3,710,825 | 3,653,288 |
Federal Home Loan Bank advances | 1,056,129 | 950,722 |
Junior subordinated debentures | 22,681 | 22,681 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held to maturity debt securities | 10,415 | |
Loans, net of allowance of loan losses | 3,710,825 | 3,653,288 |
Time deposits | 1,276,464 | 1,255,108 |
Federal Home Loan Bank advances | 1,056,129 | 950,722 |
Junior subordinated debentures | 22,681 | 22,681 |
Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held to maturity debt securities | 10,316 | |
Loans, net of allowance of loan losses | 3,664,361 | 3,598,025 |
Time deposits | 1,292,947 | 1,269,433 |
Federal Home Loan Bank advances | 1,058,936 | 950,691 |
Junior subordinated debentures | 19,363 | 19,226 |
Fair Value Measurement [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held to maturity debt securities | 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 debt securities | 10,316 | |
Loans, net of allowance of loan losses | 0 | 0 |
Time deposits | 1,292,947 | 1,269,433 |
Federal Home Loan Bank advances | 1,058,936 | 950,691 |
Junior subordinated debentures | 19,363 | 19,226 |
Fair Value Measurement [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Held to maturity debt securities | 0 | |
Loans, net of allowance of loan losses | 3,664,361 | 3,598,025 |
Time deposits | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Junior subordinated debentures | $ 0 | $ 0 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Receivables from contracts with customers | $ 5,000 | $ 4,800 |
Contract cost assets | $ 483 | $ 458 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net interest income | $ 34,584 | $ 31,852 |
Asset-based wealth management revenues | 8,921 | 9,955 |
Transaction-based wealth management revenues | 331 | 318 |
Total wealth management revenues | 9,252 | 10,273 |
Mortgage banking revenues | 2,646 | 2,838 |
Card interchange fees | 997 | 847 |
Service charges on deposit accounts | 875 | 863 |
Loan related derivative income | 724 | 141 |
Income from bank-owned life insurance | 649 | 515 |
Other income | 224 | 266 |
Total noninterest income | 15,367 | 15,743 |
Total revenues | 49,951 | 47,595 |
Revenue from Contracts with Customers [Member] | ||
Net interest income | 0 | 0 |
Asset-based wealth management revenues | 8,921 | 9,955 |
Transaction-based wealth management revenues | 331 | 318 |
Total wealth management revenues | 9,252 | 10,273 |
Mortgage banking revenues | 0 | 0 |
Card interchange fees | 997 | 847 |
Service charges on deposit accounts | 875 | 863 |
Loan related derivative income | 0 | 0 |
Income from bank-owned life insurance | 0 | 0 |
Other income | 224 | 266 |
Total noninterest income | 11,348 | 12,249 |
Total revenues | $ 11,348 | $ 12,249 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers (Disaggregation by Timing of Revenue Recognition) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Card interchange fees | $ 997 | $ 847 |
Service charges on deposit accounts | 875 | 863 |
Wealth management revenues | 9,252 | 10,273 |
Other income | 224 | 266 |
Total revenues | 49,951 | 47,595 |
Revenue from Contracts with Customers [Member] | ||
Card interchange fees | 997 | 847 |
Service charges on deposit accounts | 875 | 863 |
Wealth management revenues | 9,252 | 10,273 |
Other income | 224 | 266 |
Total revenues | 11,348 | 12,249 |
Transferred at Point in Time [Member] | Revenue from Contracts with Customers [Member] | ||
Card interchange fees | 997 | 847 |
Service charges on deposit accounts | 662 | 672 |
Other income | 179 | 226 |
Transferred over Time [Member] | Revenue from Contracts with Customers [Member] | ||
Service charges on deposit accounts | 213 | 191 |
Wealth management revenues | 9,252 | 10,273 |
Other income | $ 45 | $ 40 |
Defined Benefit Pension Plans_2
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 Plans_3
Defined Benefit Pension Plans (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Qualified Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | [1] | $ 509 | $ 561 |
Interest cost | [2] | 742 | 679 |
Expected return on plan assets | [2] | (1,124) | (1,318) |
Amortization of prior service (credit) cost | [2] | (4) | (6) |
Recognized net actuarial loss | [2] | 198 | 374 |
Net periodic benefit cost | 321 | 290 | |
Non-Qualified Retirement Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | [1] | 31 | 27 |
Interest cost | [2] | 141 | 119 |
Expected return on plan assets | [2] | 0 | 0 |
Amortization of prior service (credit) cost | [2] | 0 | 0 |
Recognized net actuarial loss | [2] | 102 | 102 |
Net periodic benefit cost | $ 274 | $ 248 | |
[1] | Included in salaries and employee benefits expense in the Unaudited Consolidated Statements of Income. | ||
[2] | Included in other expenses in the Unaudited Consolidated Statements of Income. |
Defined Benefit Pension Plans_4
Defined Benefit Pension Plans (Weighted-Average Assumptions Used) (Details) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Qualified Pension Plan [Member] | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Equivalent single discount rate for benefit obligations | 4.38% | 3.69% |
Equivalent single discount rate for service cost | 4.44% | 3.76% |
Equivalent single discount rate for interest cost | 4.12% | 3.42% |
Expected long-term return on plan assets | 5.75% | 6.75% |
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] | ||
Equivalent single discount rate for benefit obligations | 4.28% | 3.58% |
Equivalent single discount rate for service cost | 4.48% | 3.79% |
Equivalent single discount rate for interest cost | 3.98% | 3.22% |
Rate of compensation increase | 3.75% | 3.75% |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Performance Based Nonvested Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share awards, grant date fair value | $ / shares | $ 52.87 |
Award vesting period | 3 years |
Performance share awards, minimum target percentage | 0.00% |
Performance share awards, maximum target percentage | 200.00% |
Performance share awards, shares vesting percentage | 140.00% |
Performance share awards, shares vesting | shares | 41,440 |
Time Based Nonvested Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
Nonvested share units granted | shares | 1,000 |
Nonvested share units weighted average grant date fair value | $ / shares | $ 51.31 |
Business Segments (Statement of
Business Segments (Statement of Operations and Total Assets by Reportable Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | $ 34,584 | $ 31,852 | |
Provision for loan losses | 650 | 0 | |
Net interest income after provision for loan losses | 33,934 | 31,852 | |
Noninterest income | 15,367 | 15,743 | |
Depreciation and amortization expense | 1,077 | 1,075 | |
Other noninterest expenses related to segments | 25,887 | 26,055 | |
Total noninterest expense | 26,964 | 27,130 | |
Income before income taxes | 22,337 | 20,465 | |
Income tax expense | 4,842 | 4,254 | |
Net income | 17,495 | 16,211 | |
Total assets | 5,154,729 | 4,566,326 | $ 5,010,766 |
Expenditures for long-lived assets | 1,655 | 811 | |
Commercial Banking [Member] | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | 27,302 | 25,976 | |
Provision for loan losses | 650 | 0 | |
Net interest income after provision for loan losses | 26,652 | 25,976 | |
Noninterest income | 5,455 | 4,936 | |
Depreciation and amortization expense | 672 | 637 | |
Other noninterest expenses related to segments | 15,758 | 15,466 | |
Total noninterest expense | 16,430 | 16,103 | |
Income before income taxes | 15,677 | 14,809 | |
Income tax expense | 3,421 | 3,103 | |
Net income | 12,256 | 11,706 | |
Total assets | 3,884,052 | 3,521,309 | |
Expenditures for long-lived assets | 1,300 | 598 | |
Wealth Management Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | (127) | (58) | |
Provision for loan losses | 0 | 0 | |
Net interest income after provision for loan losses | (127) | (58) | |
Noninterest income | 9,252 | 10,273 | |
Depreciation and amortization expense | 365 | 396 | |
Other noninterest expenses related to segments | 6,478 | 7,199 | |
Total noninterest expense | 6,843 | 7,595 | |
Income before income taxes | 2,282 | 2,620 | |
Income tax expense | 617 | 643 | |
Net income | 1,665 | 1,977 | |
Total assets | 76,657 | 66,567 | |
Expenditures for long-lived assets | 292 | 154 | |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | 7,409 | 5,934 | |
Provision for loan losses | 0 | 0 | |
Net interest income after provision for loan losses | 7,409 | 5,934 | |
Noninterest income | 660 | 534 | |
Depreciation and amortization expense | 40 | 42 | |
Other noninterest expenses related to segments | 3,651 | 3,390 | |
Total noninterest expense | 3,691 | 3,432 | |
Income before income taxes | 4,378 | 3,036 | |
Income tax expense | 804 | 508 | |
Net income | 3,574 | 2,528 | |
Total assets | 1,194,020 | 978,450 | |
Expenditures for long-lived assets | $ 63 | $ 59 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (Activity in Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Changes in fair value of available for sale debt securities, before tax | $ 14,406 | $ (13,613) | |
Changes in fair value of available for sale debt securities, tax | 3,385 | (3,199) | |
Changes in fair value of available for sale debt securities | 11,021 | (10,414) | |
Net gains on debt securities reclassified into earnings, before tax | 0 | 0 | |
Net gains on debt securities reclassified into earnings, tax | 0 | 0 | |
Net gains on debt securities reclassified into earnings | 0 | 0 | |
Net change in fair value of available for sale debt securities, before tax | 14,406 | (13,613) | |
Net change in fair value of available for sale debt securities, tax | 3,385 | (3,199) | |
Net change in fair value of available for sale debt securities | 11,021 | (10,414) | |
Change in fair value of cash flow hedges, before tax | (546) | 803 | |
Change in fair value of cash flow hedges, tax | (128) | 91 | |
Change in fair value of cash flow hedges | (418) | 712 | |
Net cash flow hedge losses reclassified into earnings, before tax | [1] | (31) | 231 |
Net cash flow hedge losses reclassified into earnings, tax | [1] | (7) | 54 |
Net cash flow hedge losses reclassified into earnings | [1] | (24) | 177 |
Net change in fair value of cash flow hedges, before tax | (577) | 1,034 | |
Net change in fair value of cash flow hedges, tax | (135) | 145 | |
Net change in fair value of cash flow hedges | (442) | 889 | |
Amortization of net actuarial losses, before tax | [2] | 300 | 476 |
Amortization of net actuarial losses, tax | [2] | 70 | 112 |
Amortization of net actuarial losses | [2] | 230 | 364 |
Amortization of net prior service credits, before tax | [2] | (4) | (6) |
Amortization of net prior service credits, tax | [2] | (1) | (2) |
Amortization of net prior service credits | [2] | (3) | (4) |
Net change in defined benefit plan obligations, before tax | 296 | 470 | |
Net change in defined benefit plan obligations, tax | 69 | 110 | |
Net change in defined benefit plan obligations | 227 | 360 | |
Total other comprehensive income (loss), before tax | 14,125 | (12,109) | |
Total other comprehensive income (loss), tax | 3,319 | (2,944) | |
Total other comprehensive income (loss), net of tax | $ 10,806 | $ (9,165) | |
[1] | The pre-tax amounts are included in interest expense on FHLB advances, interest expense on junior subordinated debentures and interest and fees on loans in the Unaudited Consolidated Statements of Income. | ||
[2] | The pre-tax amounts are included in other expenses in the Unaudited Consolidated Statements of Income. |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated other comprehensive income (loss), beginning balance | $ (28,309) | $ (23,510) |
Other comprehensive income (loss) before reclassifications | 10,603 | (9,702) |
Amounts reclassed from accumulated other comprehensive income (loss) | 203 | 537 |
Total other comprehensive income (loss), net of tax | 10,806 | (9,165) |
Accumulated other comprehensive income (loss), ending balance | (17,503) | (32,675) |
Net Unrealized Gains (Losses) on AFS Securities [Member] | ||
Accumulated other comprehensive income (loss), beginning balance | (16,762) | (7,534) |
Other comprehensive income (loss) before reclassifications | 11,021 | (10,414) |
Amounts reclassed from accumulated other comprehensive income (loss) | 0 | 0 |
Total other comprehensive income (loss), net of tax | 11,021 | (10,414) |
Accumulated other comprehensive income (loss), ending balance | (5,741) | (17,948) |
Net Unrealized Losses on Cash Flow Hedges [Member] | ||
Accumulated other comprehensive income (loss), beginning balance | 191 | (428) |
Other comprehensive income (loss) before reclassifications | (418) | 712 |
Amounts reclassed from accumulated other comprehensive income (loss) | (24) | 177 |
Total other comprehensive income (loss), net of tax | (442) | 889 |
Accumulated other comprehensive income (loss), ending balance | (251) | 461 |
Pension Benefit Adjustment [Member] | ||
Accumulated other comprehensive income (loss), beginning balance | (11,738) | (15,548) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassed from accumulated other comprehensive income (loss) | 227 | 360 |
Total other comprehensive income (loss), net of tax | 227 | 360 |
Accumulated other comprehensive income (loss), ending balance | $ (11,511) | $ (15,188) |
Earning Per Common Share (Calcu
Earning Per Common Share (Calculation of Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income | $ 17,495 | $ 16,211 |
Less dividends and undistributed earnings allocated to participating securities | (34) | (38) |
Net income applicable to common shareholders | $ 17,461 | $ 16,173 |
Weighted average common shares outstanding - basic | 17,304,000 | 17,234,000 |
Basic earnings per common share | $ 1.01 | $ 0.94 |
Less dividends and undistributed earnings allocated to participating securities | $ (34) | $ (38) |
Net income applicable to common shareholders | $ 17,461 | $ 16,173 |
Dilutive effect of common stock equivalents | 97,000 | 111,000 |
Weighted average common shares outstanding - diluted | 17,401,000 | 17,345,000 |
Diluted earnings per common share | $ 1 | $ 0.93 |
Antidilutive common stock equivalents | 87,775 | 45,832 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Jan. 01, 2019 | |||
Operating lease right-of-use assets | $ 28,249 | $ 0 | $ 28,923 | |||
Operating lease liabilities | $ 30,187 | [1] | $ 0 | $ 30,853 | ||
Operating lease weighted average discount rate | 3.66% | |||||
Operating leases, weighted average lease term | 14 years 4 months 25 days | |||||
Operating lease rent expense | [2] | $ 939 | $ 916 | |||
Options to extend reasonably certain of being exercised | 4,700 | |||||
Short-term operating lease liabilities | $ 2,500 | |||||
Minimum [Member] | ||||||
Lease Expiration Period | 2 months | 5 months | ||||
Operating lease renewal term | 1 year | |||||
Lease Expiration Period, Renewal Option | 1 year | |||||
Maximum [Member] | ||||||
Lease Expiration Period | 22 years | 22 years | ||||
Operating lease renewal term | 5 years | |||||
Lease Expiration Period, Renewal Option | 5 years | |||||
[1] | Includes short-term operating lease liabilities of $2.5 million. | |||||
[2] | Included in net occupancy expenses in the Unaudited Consolidated Income Statement. |
Leases (Schedule of Operating L
Leases (Schedule of Operating Lease Payments) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | ||
Leases [Abstract] | |||||
Operating lease minimum payments, Due Next Twelve Months | $ 2,665 | ||||
Operating lease minimum payments, Due Year Two | 3,433 | ||||
Operating lease minimum payments, Due Year Three | 3,270 | ||||
Operating lease minimum payments, Due Year Four | 3,123 | ||||
Operating lease minimum payments, Due Year Five | 2,991 | ||||
Operating lease minimum payments, Due after Year Five | 24,318 | ||||
Total operating lease payments | [1] | 39,800 | |||
Interest | 9,613 | ||||
Present value of operating lease liabilities | $ 30,187 | [2] | $ 30,853 | $ 0 | |
[1] | Includes $4.7 million related to options to extend lease terms that are reasonably certain of being exercised. | ||||
[2] | Includes short-term operating lease liabilities of $2.5 million. |
Leases (Lease Cost and Cash Pai
Leases (Lease Cost and Cash Paid) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Leases [Abstract] | |||
Operating lease cost | $ 928 | ||
Variable lease cost | 11 | ||
Total lease cost | [1] | 939 | $ 916 |
Cash paid reducing operating lease liabilities | $ 920 | ||
[1] | Included in net occupancy expenses in the Unaudited Consolidated Income Statement. |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
Future minimum lease payments, Next Twelve Months | $ 3,544 |
Future minimum lease payments, Two Years | 2,980 |
Future minimum lease payments, Three Years | 2,677 |
Future minimum lease payments, Four Years | 2,293 |
Future minimum lease payments, Five Years | 2,059 |
Future minimum lease payments, Thereafter | 22,648 |
Total minimum lease payments | $ 36,201 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Commitments to extend credit on standby letters of credit [Member] | Commitments to extend credit [Member] | ||
Commitments and Contingencies Disclosure [Line Items] | ||
Contract amount | $ 8,469 | $ 7,706 |
Commitments and Contingencies_3
Commitments and Contingencies (Financial Instruments with Off Balance Sheet Risk) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Interest rate lock commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | $ 64,104 | $ 30,800 |
Forward sale commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 94,640 | 62,000 |
Interest rate swaps with customers [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 671,492 | 648,050 |
Mirror swaps with counterparties [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 671,492 | 648,050 |
Risk participation-in agreement [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 46,357 | 46,510 |
Foreign exchange contracts [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 2,726 | 2,784 |
Interest rate swaps [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 60,000 | 60,000 |
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 | 502,781 | 533,884 |
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 | 278,477 | 270,462 |
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 | 48,750 | 46,698 |
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 | $ 8,469 | $ 7,706 |