Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Cover page. | ||
Entity Address, Address Line One | 23 Broad Street | |
Entity Address, City or Town | Westerly, | |
Entity Address, State or Province | RI | |
Entity Incorporation, State or Country Code | RI | |
Document Transition Report | false | |
Document Quarterly Report | true | |
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 | |
Entity File Number | 001-32991 | |
City Area Code | 401 | |
Local Phone Number | 348-1200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Title of 12(g) Security | COMMON STOCK, $.0625 PAR VALUE PER SHARE | |
Trading Symbol | WASH | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 17,258,482 | |
Entity Tax Identification Number | 05-0404671 | |
Entity Address, Postal Zip Code | 02891 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | ||
Assets: | ||||
Cash and due from banks | $ 178,678 | $ 132,193 | ||
Short-term investments | 6,591 | 6,262 | ||
Mortgage loans held for sale, at fair value | 49,751 | 27,833 | ||
Available for sale debt securities, at fair value | 917,392 | 899,490 | ||
Federal Home Loan Bank stock, at cost | 53,576 | 50,853 | ||
Loans: | ||||
Total loans | [1] | 4,090,396 | 3,892,999 | |
Less: allowance for credit losses on loans | 39,665 | 27,014 | ||
Net loans | 4,050,731 | 3,865,985 | ||
Premises and equipment, net | 28,543 | 28,700 | ||
Operating lease right-of-use assets | 26,098 | 26,792 | ||
Investment in bank-owned life insurance | 83,053 | 82,490 | ||
Goodwill | 63,909 | 63,909 | ||
Identifiable intangible assets, net | 6,988 | 7,218 | ||
Other assets | 155,669 | 100,934 | ||
Total assets | 5,620,979 | 5,292,659 | ||
Liabilities: | ||||
Noninterest-bearing deposits | 622,893 | 609,924 | ||
Interest-bearing deposits | 3,083,421 | 2,888,958 | ||
Total deposits | 3,706,314 | 3,498,882 | ||
Federal Home Loan Bank advances | 1,198,534 | 1,141,464 | ||
Junior subordinated debentures | 22,681 | 22,681 | ||
Operating lease liabilities | 28,184 | [2] | 28,861 | |
Other liabilities | 156,669 | 97,279 | ||
Total liabilities | 5,112,382 | 4,789,167 | ||
Commitments and contingencies (Note 18) | ||||
Shareholders' Equity: | ||||
Common stock | 1,085 | 1,085 | ||
Paid-in capital | 123,167 | 123,281 | ||
Retained earnings | 387,243 | 390,363 | ||
Accumulated other comprehensive income (loss) | 929 | (11,237) | ||
Treasury stock, at cost | (3,827) | 0 | ||
Total shareholders' equity | 508,597 | 503,492 | ||
Total liabilities and shareholders’ equity | $ 5,620,979 | $ 5,292,659 | ||
[1] | Includes net unamortized loan origination costs of $5.2 million and $5.3 million , respectively, at March 31, 2020 and December 31, 2019 and net unamortized premiums on purchased loans of $724 thousand and $995 thousand , respectively, at March 31, 2020 and December 31, 2019 . | |||
[2] | Includes short-term operating lease liabilities of $2.4 million |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Available for sale debt securities amortized cost basis | $ 896,435,000 | $ 895,273,000 |
Available for sale debt securities allowance for credit losses | $ 0 | |
Common stock, par value | $ 0.0625 | $ 0.0625 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 17,363,457 | 17,363,455 |
Common stock, shares outstanding | 17,251,532 | 17,363,455 |
Treasury stock, shares | 111,925 | 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest income: | ||
Interest and fees on loans | $ 40,008 | $ 41,744 |
Interest on mortgage loans held for sale | 285 | 180 |
Taxable interest on debt securities | 5,834 | 7,226 |
Nontaxable interest on debt securities | 0 | 9 |
Dividends on Federal Home Loan Bank stock | 640 | 695 |
Other interest income | 349 | 340 |
Total interest and dividend income | 47,116 | 50,194 |
Interest expense: | ||
Deposits | 8,536 | 8,696 |
Federal Home Loan Bank advances | 5,765 | 6,661 |
Junior subordinated debentures | 213 | 253 |
Total interest expense | 14,514 | 15,610 |
Net interest income | 32,602 | 34,584 |
Provision for credit losses | 7,036 | 650 |
Net interest income after provision for loan losses | 25,566 | 33,934 |
Noninterest income: | ||
Wealth management revenues | 8,689 | 9,252 |
Mortgage banking revenues | 6,096 | 2,646 |
Card interchange fees | 947 | 997 |
Service charges on deposit accounts | 860 | 875 |
Loan related derivative income | 2,455 | 724 |
Income from bank-owned life insurance | 564 | 649 |
Other income | 316 | 224 |
Total noninterest income | 19,927 | 15,367 |
Noninterest expense: | ||
Salaries and employee benefits | 19,468 | 17,619 |
Outsourced services | 3,000 | 2,606 |
Net occupancy | 2,019 | 1,998 |
Equipment | 977 | 1,011 |
Legal, audit and professional fees | 822 | 534 |
FDIC deposit insurance costs | 422 | 429 |
Advertising and promotion | 259 | 239 |
Amortization of intangibles | 230 | 239 |
Other expenses | 3,256 | 2,289 |
Total noninterest expense | 30,453 | 26,964 |
Income before income taxes | 15,040 | 22,337 |
Income tax expense | 3,139 | 4,842 |
Net income | 11,901 | 17,495 |
Net income applicable to common shareholders | $ 11,869 | $ 17,461 |
Weighted average common shares outstanding - basic | 17,345 | 17,304 |
Weighted average common shares outstanding - diluted | 17,441 | 17,401 |
Per share information: | ||
Basic earnings per common share | $ 0.68 | $ 1.01 |
Diluted earnings per common share | $ 0.68 | $ 1 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 11,901 | $ 17,495 |
Other comprehensive income (loss), net of tax: | ||
Net change in fair value of available for sale debt securities | 12,806 | 11,021 |
Net change in fair value of cash flow hedges | (1,050) | (442) |
Net change in defined benefit plan obligations | 410 | 227 |
Total other comprehensive income (loss), net of tax | 12,166 | 10,806 |
Total comprehensive income | $ 24,067 | $ 28,301 |
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] | Treasury Stock [Member] |
Common Stock, Shares Outstanding, Beginning Balance at Dec. 31, 2018 | 17,302,000 | |||||
Shareholders' Equity, Beginning Balance at Dec. 31, 2018 | $ 448,184 | $ 1,081 | $ 119,888 | $ 355,524 | $ (28,309) | $ 0 |
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 | 0 | ||
Common Stock, Shares Outstanding, Ending Balance at Mar. 31, 2019 | 17,305,000 | |||||
Shareholders' Equity, Ending Balance at Mar. 31, 2019 | 469,843 | $ 1,082 | 120,743 | 365,521 | (17,503) | 0 |
Cumulative effect of change in accounting principle | $ 722 | 722 | ||||
Common Stock, Shares Outstanding, Beginning Balance at Dec. 31, 2019 | 17,363,455 | 17,363,000 | ||||
Shareholders' Equity, Beginning Balance at Dec. 31, 2019 | $ 503,492 | $ 1,085 | 123,281 | 390,363 | (11,237) | 0 |
Net income | 11,901 | 11,901 | ||||
Total other comprehensive income (loss), net of tax | 12,166 | 12,166 | ||||
Cash dividends declared | (8,913) | (8,913) | ||||
Share-based compensation | 758 | 758 | ||||
Exercise of stock options and issuance of other compensation-related equity awards, shares | 14,000 | |||||
Exercise of stock options and issuance of other compensation-related equity awards, value | $ (377) | $ 0 | (872) | 495 | ||
Common Stock, Shares Outstanding, Ending Balance at Mar. 31, 2020 | 17,251,532 | 17,252,000 | ||||
Shareholders' Equity, Ending Balance at Mar. 31, 2020 | $ 508,597 | $ 1,085 | $ 123,167 | 387,243 | $ 929 | (3,827) |
Treasury stock, shares acquired | (124,863) | |||||
Treasury stock, amount acquired | $ (4,322) | $ (4,322) | ||||
Cumulative effect of change in accounting principle | $ (6,108) | $ (6,108) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared per share | $ 0.51 | $ 0.47 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 11,901 | $ 17,495 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 7,036 | 650 |
Depreciation of premises and equipment | 783 | 838 |
Net amortization of premium and discount on securities and loans | 1,519 | 822 |
Amortization of intangibles | 230 | 239 |
Share-based compensation | 758 | 740 |
Tax benefit from stock option exercises and other equity awards | (85) | 7 |
Income from bank-owned life insurance | (564) | (649) |
Net gains on loan sales and commissions on loans originated for others, including fair value adjustments | (6,013) | (2,474) |
Proceeds from sales of loans | 148,768 | 51,673 |
Loans originated for sale | (166,408) | (46,864) |
(Increase) decrease in operating lease right-of-use assets | 694 | 673 |
Increase (decrease) in operating lease liabilities | (677) | (666) |
(Increase) decrease in other assets | (57,060) | (11,022) |
Increase (decrease) in other liabilities | 56,292 | 9,532 |
Net cash provided by (used in) operating activities | (2,826) | 20,994 |
Cash flows from investing activities: | ||
Purchases of mortgage-backed securities available for sale | (70,924) | (62,109) |
Purchases of other investment securities available for sale | (45,000) | (10,507) |
Maturities and principal payments of mortgage-backed securities available for sale | 43,750 | 19,718 |
Maturities and principal payments of other investment securities available for sale | 70,000 | 10,000 |
Remittance (purchases) of Federal Home Loan Bank stock | (2,723) | (1,957) |
Net (increase) decrease in loans | (145,740) | (54,147) |
Purchases of loans | (51,081) | (161) |
Proceeds from the sale of property acquired through foreclosure or repossession | 1,066 | 0 |
Purchases of premises and equipment | (628) | (1,655) |
Proceeds from surrender of bank-owned life insurance | 0 | 326 |
Net cash provided by (used in) investing activities | (201,280) | (100,492) |
Cash flows from financing activities: | ||
Net increase (decrease) in deposits | 207,432 | (19,788) |
Proceeds from Federal Home Loan Bank advances | 879,000 | 532,000 |
Repayment of Federal Home Loan Bank advances | (821,930) | (426,593) |
Treasury stock purchased | (4,322) | 0 |
Net proceeds from stock option exercises and issuance of other equity awards | (377) | 116 |
Cash dividends paid | (8,883) | (8,153) |
Net cash provided by (used in) financing activities | 250,920 | 77,582 |
Net increase (decrease) in cash and cash equivalents | 46,814 | (1,916) |
Cash and cash equivalents at beginning of period | 138,455 | 93,475 |
Cash and cash equivalents at end of period | 185,269 | 91,559 |
Noncash Investing and Financing Activities: | ||
Loans charged off | 635 | 103 |
Loans transferred to property acquired through foreclosure or repossession | 28 | 0 |
Operating lease right-of-use assets | 0 | 28,923 |
Operating lease liabilities | 0 | 30,853 |
Fair value of debt securities transferred from held-to-maturity to available for sale | 0 | 10,316 |
Supplemental Disclosures: | ||
Interest Payments | 14,479 | 14,082 |
Income tax payments | $ 1,036 | $ 1,136 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
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. 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. 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, 2019 . Risks and Uncertainties The COVID-19 pandemic has caused an unprecedented disruption to the economy and the communities we serve. In response, we are committed to working with and supporting our customers experiencing financial difficulty due to the COVID-19 pandemic, including loan payment deferrals and participation in the Small Business Administration's (“SBA’s”) Paycheck Protection Program (“PPP”). In addition, we implemented our business continuity and pandemic plans, which include remote working arrangements for the majority of our workforce, closing our branches and offering drive-through banking or special banking services by appointment only, and promoting social distancing. The U.S. government and regulatory agencies have taken several actions to provide support to the U.S. economy. Most notably, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), a $2 trillion stimulus bill, was signed into law on March 27, 2020. The goal of the CARES Act is to prevent a severe economic downturn through various measures, including direct financial aid to American families and economic stimulus to significantly impacted industry sectors. The CARES Act also includes extensive emergency funding for hospitals and providers. In addition to the general impact of the COVID-19 pandemic, certain provisions of the CARES Act, as well as other recent legislative and regulatory relief efforts, are expected to have a material impact on the Corporation’s operations. Also, the actions of t he Board of Governors of the Federal Reserve System (the “FRB”) to combat the economic contraction caused by the COVID-19 pandemic, including the reduction of the target federal funds rate and quantitative easing programs, could, if prolonged, adversely affect the Corporation’s net interest income and margins, and profitability. While it is not possible to know the full extent of these impacts as of the date of this filing, detailed below are potentially material items of which we are aware. • As noted above, net interest income could be reduced. Also, in accordance with regulatory guidance, Washington Trust is actively working with borrowers impacted by the COVID-19 pandemic to defer payments. While interest will continue to be recognized in accordance with GAAP, should eventual credit losses on these deferments emerge, interest income would be negatively impacted. • The provision for credit losses could increase. Continued uncertainty regarding the severity and duration of the COVID-19 pandemic and related economic effects will continue to affect the accounting for credit losses. It also is possible that asset quality could worsen, expenses associated with collection efforts could increase and loan charge-offs could increase. Washington Trust is actively participating in the SBA’s PPP, providing loans to small businesses negatively impacted by the COVID-19 pandemic. PPP loans are fully guaranteed by the U.S. government, if that should change, Washington Trust could be required to increase its allowance for credit losses through an additional provision for credit losses charged to earnings. • Noninterest income could be reduced. Uncertainty regarding COVID-19 could cause further volatility in the financial markets. A substantial portion of wealth management revenues is dependent on the value of wealth management assets under administration and is closely tied to the performance of the financial markets. COVID-19 could also cause disruption in the loan origination process. Mortgage banking revenues are dependent on mortgage origination volume and are sensitive to interest rates and the condition of housing markets. • As noted above, the Corporation implemented its business continuity and pandemic plans, which include remote working arrangements for the majority of its workforce. While there has been no material impact to the Corporation’s employees as of this report date, if COVID-19 escalates further it could also potentially create business continuity issues. The Corporation does not currently anticipate significant challenges to its ability to maintain systems and controls in light of the measures the Corporation has taken to prevent the spread of COVID-19. • Valuation and fair value measurement challenges may occur. Management performed an interim impairment assessment on goodwill as a result of changes in the macroeconomic environment resulting from the COVID-19 pandemic in the three month period ended March 31, 2020 . Goodwill represents the excess of the purchase price over the net fair value of the acquired businesses. As of March 31, 2020 , the Corporation had $63.9 million in goodwill, of which $41.3 million was allocated to the Wealth Management Service s reporting unit and $22.6 million was allocated to the Commercial Banking reporting unit. The results of the interim impairment assessment indicated that the remaining fair value significantly exceeded the carrying value for both reporting units. The COVID-19 pandemic could cause further and sustained decline in the Corporation’s stock price or the occurrence of additional valuation triggering events that could result in an impairment charge to earnings. The extent to which the COVID-19 pandemic will continue to impact the Corporation’s business, results of operations, and financial condition, as well as regulatory capital and liquidity ratios, will depend on future developments, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic, as well as further actions the Corporation may take as may be required by government authorities or that the Corporation determines is in the best interests of its employees and customers. There is no certainty that such measures will be sufficient to mitigate the risks posed by the pandemic. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Accounting Standards Adopted in 2020 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 expected lifetime credit losses for financial assets measured at amortized cost, as well as unfunded commitments that are considered off-balance sheet credit exposures at the reporting date. The measurement is 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. For available for sale debt securities with unrealized losses, Topic 326 requires credit losses to be recognized as an allowance rather than a reduction in the amortized cost of the securities. As a result, improvements to estimated credit losses are recognized immediately in earnings rather than as interest income over time. 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. This ASU was effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019. The Corporation adopted ASU 2016-13, including the subsequent ASUs issued to clarify Topic 326 (“Topic 326”), on January 1, 2020. The Corporation assembled a cross-functional project team that met regularly to address the additional data requirements, to determine the approach for implementation and to identify new internal controls over enhanced accounting processes for estimating the allowance for credit losses (“ACL”). This included assessing the adequacy of existing loan and loss data, assessing models for default and loss estimates, conducting limited “trial” runs and analytical reviews through December 31, 2019, and completing independent model validation and documentation of ACL processes and controls in the first quarter of 2020. In accordance with Topic 326, the Corporation has updated its ACL accounting policies. Required policy disclosures are provided in Notes 4, 5, 6 and 18. Upon adoption of Topic 326 on January 1, 2020, the ACL for loans (a contra-asset) increased by $6.5 million and the ACL for unfunded commitments (a liability) increased by $1.5 million , as compared to December 31, 2019. The increases in the ACL on loans and unfunded commitments upon adoption resulted in a one-time cumulative-effect adjustment that decreased retained earnings by $6.1 million , net of deferred tax balances of $1.9 million . The Corporation has elected the five-year phase-in option, provided by regulatory guidance issued by the Federal Deposit Insurance Corporation (“FDIC”) in March 2020, which delays the estimated impact of Topic 326 on regulatory capital for the first two years and then phases it in over a three-year period beginning in 2022. See Note 8 for additional disclosure on regulatory capital. 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 was effective for fiscal years beginning after December 15, 2019. Certain provisions under ASU 2018-13 required prospective application, while other provisions required retrospective application to all periods presented in the consolidated financial statements upon adoption. The Corporation adopted the provisions of ASU 2018-13 effective January 1, 2020 and the adoption did not 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. ASU 2018-15 was effective for fiscal years beginning after December 15, 2019. Effective January 1, 2020, the Corporation adopted the provision of ASU 2018-15 prospectively, as permitted, and the adoption did not have a material impact on the Corporation’s consolidated financial statements. Accounting Standards Pending Adoption 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. Income Taxes - Topic 745 Accounting Standards Update No. 2019-12, “Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes” (“ASU 2019-12”), was issued in December 2019 to simplify the accounting for income taxes. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. Certain provisions under ASU 2019-12 require prospective application, some require modified retrospective application through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption, while other provisions require retrospective application to all periods presented in the consolidated financial statements upon adoption. The adoption of ASU 2019-12 is not expected to have a material impact on the Corporation’s consolidated financial statements. Reference Rate Reform - Topic 848 Accounting Standards Update No. 2020-04, “Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”), was issued in March 2020 to ease the potential burden in accounting for recognizing the effects of reference rate reform on financial reporting. Such challenges include the accounting and operational implications for contract modifications and hedge accounting. The provisions in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to loan and lease agreements, contracts, hedging relationships, and other transactions affected by reference rate reform. These provisions apply to contract modifications that reference LIBOR or another reference rate expected to be discounted because of reference rate reform. Qualifying modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate and the modification would be considered "minor" so that any existing unamortized deferred loan origination fees and costs would carry forward and continue to be amortized. Qualifying modifications of lease agreements should be accounted for as a continuation of the existing agreement with no reassessments of the lease classification and the discount rate or remeasurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. ASU 2020-04 also provides numerous optional expedients for hedge accounting. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022, with adoption permitted as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected, the amendments must be applied prospectively for all eligible contract modifications. The Corporation is currently evaluating the effect that this ASU will have on the Corporation’s consolidated financial statements. |
Cash and Due from Banks
Cash and Due from Banks | 3 Months Ended |
Mar. 31, 2020 | |
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 FRB. Some or all of these reserve requirements may be satisfied with vault cash. Effective March 26, 2020, the FRB reduced the reserve requirement ratios to zero percent to eliminate the need for depository institutions, such as the Bank, to maintain balances in accounts at the FRB to satisfy reserve requirem ents. At December 31, 2019 , the reserve balance was $27.9 million and was included in cash and due from banks in the Unaudited Consolidated Balance Sheets. As of March 31, 2020 and December 31, 2019 , cash and due from banks includes interest-bearing deposits in other banks of $136.8 million and $83.4 million , respectively. See Note 9 for additional disclosure regarding cash collateral pledged to derivative counterparties. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities Adoption of Topic 326 Effective January 1, 2020, the Corporation adopted the provisions of Topic 326 using the modified retrospective method. Therefore, prior period comparative information has not been adjusted and continues to be reported under GAAP in effect prior to the adoption of Topic 326. There was no ACL on available for sale debt securities recognized upon the adoption of Topic 326. Accounting Policy Updates Effective January 1, 2020, the Corporation has modified its accounting policy for the assessment of available for sale debt securities for impairment. The updated policy is detailed below. The Corporation has made an accounting policy election to exclude accrued interest from the amortized cost basis of debt securities and reports accrued interest separately in other assets in the Unaudited Consolidated Balance Sheets. The Corporation also excludes accrued interest from the estimate of credit losses. Accrued interest receivable on available for sale debt securities totaled $2.8 million and $2.9 million , respectively, as of March 31, 2020 and December 31, 2019 . A debt security is placed on nonaccrual status at the time any principal or interest payments become more than 90 days delinquent or if full collection of interest or principal becomes uncertain. Accrued interest for a debt security placed on nonaccrual is reversed against interest income. There were no debt securities on nonaccrual status and therefore there was no accrued interest related to debt securities reversed against interest income for the three months ended March 31, 2020 and 2019. For available for sale debt securities in an unrealized loss position, management first assesses whether the Corporation intends to sell, or if it is likely that the Corporation will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through a provision for credit losses charge to earnings. For debt securities available for sale that do not meet either these criteria, management evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers both quantitative and qualitative factors. A substantial portion of available for sale debt securities held by the Corporation are obligations issued by U.S. government agency and U.S. government-sponsored enterprises, including mortgage-backed securities. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major credit rating agencies and have a long history of no credit losses. For these securities, management takes into consideration the long history of no credit losses and other factors to assess the risk of nonpayment even if the U.S. government were to default. As such, the Corporation has elected the practical expedient of a zero loss estimate due to credit for these securities. For available for sale debt securities that are not guaranteed by U.S. government agencies and U.S. government-sponsored enterprises, such as individual name issuer trust preferred debt securities and corporate bonds, management utilizes a third party credit modeling tool based on observable market data, which assists management in identifying any potential credit risk associated with its available for sale debt securities. This model estimates probability of default, loss given default and exposure at default for each security. In addition, qualitative factors are also considered, including the extent to which fair value is less than amortized cost, changes to the credit rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If a credit loss exists based on the results of this assessment, an ACL (contra asset) is recorded, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is considered market-related and is recognized in other comprehensive income, net of taxes. Changes in the ACL on available for sale debt securities are recorded as provision for (or reversal of) credit losses. Losses are charged against the ACL when management believes the uncollectibility of an available for sale debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Available for Sale Debt Securities The following table presents the amortized cost, gross unrealized holding gains, gross unrealized holding losses, ACL on securities and fair value of securities by major security type and class of security: (Dollars in thousands) March 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Allowance for Credit Losses Fair Value Available for Sale Debt Securities: Obligations of U.S. government-sponsored enterprises $132,262 $1,408 ($169 ) $— $133,501 Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 739,701 24,689 (46 ) — 764,344 Individual name issuer trust preferred debt securities 13,328 — (2,232 ) — 11,096 Corporate bonds 11,144 — (2,693 ) — 8,451 Total available for sale debt securities $896,435 $26,097 ($5,140 ) $— $917,392 Total securities $896,435 $26,097 ($5,140 ) $— $917,392 The following table presents the amortized cost, gross unrealized holding gains, gross unrealized holding losses and fair value of securities by major security type and class of security: (Dollars in thousands) December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Available for Sale Debt Securities: Obligations of U.S. government-sponsored enterprises $157,255 $626 ($233 ) $157,648 Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 713,553 8,491 (2,964 ) 719,080 Individual name issuer trust preferred debt securities 13,324 — (745 ) 12,579 Corporate bonds 11,141 — (958 ) 10,183 Total available for sale debt securities $895,273 $9,117 ($4,900 ) $899,490 Total securities $895,273 $9,117 ($4,900 ) $899,490 As of March 31, 2020 and December 31, 2019 , debt securities with a fair value of $400.0 million and $431.9 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, 2020 Amortized Cost Fair Value Due in one year or less $110,903 $114,238 Due after one year to five years 339,369 349,303 Due after five years to ten years 269,847 273,824 Due after ten years 176,316 180,027 Total debt securities $896,435 $917,392 Included in the above table are debt securities with an amortized cost balance of $155.4 million and a fair value of $151.7 million at March 31, 2020 that are callable at the discretion of the issuers. Final maturities of the callable securities range from 1 month to 17 years, with call features ranging from 1 month to 2 years. Assessment of Available for Sale Debt Securities for Impairment Management assesses the decline in fair value of investment securities 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, vol atility of earnings of a specific issuer, or deterioration in credit quality of the issuer. Management evaluates both qualitative and quantitative factors to assess whether an impairment exists. For the accounting policy on the assessment of available for sale debt securities for impairment that was in effect prior to the adoption of Topic 326, see Note 1 to our Annual Report on Form 10-K for the fiscal year ended December 31, 2019. The following table summarizes available for sale debt securities in an unrealized loss position for which an allowance for credit losses on securities has not been recorded at March 31, 2020, 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, 2020 # Fair Unrealized # Fair Value Unrealized Losses # Fair Value Unrealized Losses Obligations of U.S. government-sponsored enterprises 1 $24,831 ($169 ) — $— $— 1 $24,831 ($169 ) Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 4 12,178 (46 ) — — — 4 12,178 (46 ) Individual name issuer trust preferred debt securities — — — 5 11,096 (2,232 ) 5 11,096 (2,232 ) Corporate bonds — — — 3 8,451 (2,693 ) 3 8,451 (2,693 ) Total 5 $37,009 ($215 ) 8 $19,547 ($4,925 ) 13 $56,556 ($5,140 ) The following tables summarize temporarily impaired securities, segregated by length of time the securities have been in a continuous unrealized loss position: (Dollars in thousands) Less than 12 Months 12 Months or Longer Total December 31, 2019 # Fair Value Unrealized Losses # Fair Value Unrealized Losses # Fair Value Unrealized Losses Obligations of U.S. government-sponsored enterprises 3 $20,364 ($136 ) 3 $49,902 ($97 ) 6 $70,266 ($233 ) Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 4 41,150 (56 ) 23 216,804 (2,908 ) 27 257,954 (2,964 ) Individual name issuer trust preferred debt securities — — — 5 12,579 (745 ) 5 12,579 (745 ) Corporate bonds — — — 3 10,183 (958 ) 3 10,183 (958 ) Total 7 $61,514 ($192 ) 34 $289,468 ($4,708 ) 41 $350,982 ($4,900 ) 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 credit losses, 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. The issuers of these securities continue to make timely principal and interest payments and none of these securities were past due at March 31, 2020 . 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 likely that the Corporation will not be required to sell these securities before recovery of their cost basis, which may be maturity. Therefore, no allowance for credits losses on securities was recorded at March 31, 2020 . Individual Name Issuer Trust Preferred Debt Securities Included in debt securities in an unrealized loss position at March 31, 2020 were five trust preferred securities issued by four individual companies in the banking sector. Management believes the unrealized losses on these debt security holdings are primarily attributable to changes in the investment spreads and interest rates and not changes in the credit quality of the issuers of the debt securities. 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, 2020 , individual name issuer trust preferred debt securities with an amortized cost of $2.0 million and unrealized losses of $421 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, 2020 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 likely that the Corporation will not be required to sell these securities before recovery of their cost basis, which may be maturity. Therefore, no allowance for credit losses on securities was recorded at March 31, 2020 . Corporate Bonds At March 31, 2020 , the Corporation had three corporate bond holdings with unrealized losses totaling $2.7 million . These investment grade corporate bonds were issued by large corporations in the financial services industry. The issuers of these securities continue to make timely principal and interest payments and none of these securities were past due at March 31, 2020 . 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. Management believes the unrealized losses on these bonds are primarily attributable to changes in the investment spreads and interest rates 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 likely that the Corporation will not be required to sell these securities before recovery of their cost basis, which may be maturity. Therefore, no allowance for credit losses was recorded at March 31, 2020 . |
Loans
Loans | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Loans | Loans The following is a summary of loans: (Dollars in thousands) March 31, December 31, 2019 Commercial: Commercial real estate (1) $1,618,020 $1,547,572 Commercial & industrial (2) 655,157 585,289 Total commercial 2,273,177 2,132,861 Residential Real Estate: Residential real estate (3) 1,510,472 1,449,090 Consumer: Home equity 287,134 290,874 Other (4) 19,613 20,174 Total consumer 306,747 311,048 Total loans (5) $4,090,396 $3,892,999 (1) Commercial real estate (“CRE”) 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) Commercial and industrial (“C&I”) consists of loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate. (3) Residential real estate consists of mortgage and homeowner construction loans secured by one- to four-family residential properties. (4) Other consists of loans to individuals secured by general aviation aircraft and other personal installment loans. (5) Includes net unamortized loan origination costs of $5.2 million and $5.3 million , respectively, at March 31, 2020 and December 31, 2019 and net unamortized premiums on purchased loans of $724 thousand and $995 thousand , respectively, at March 31, 2020 and December 31, 2019 . As of March 31, 2020 and December 31, 2019 , loans amounting to $2.2 billion and $2.1 billion , respectively, 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. Concentrations of Credit Risk A significant portion of our loan portfolio is concentrated among borrowers in southern New England and a substantial portion of the portfolio is collateralized by real estate in this area. The ability of single family residential and consumer borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity within the market area and real estate values. The ability of commercial borrowers to honor their repayment commitments is dependent on the general economy as well as the health of the real estate economic sector in the Corporation’s market area. 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, 2020 30-59 60-89 Over 90 Total Past Due Current Total Loans Commercial: Commercial real estate $825 $— $450 $1,275 $1,616,745 $1,618,020 Commercial & industrial 20 — 290 310 654,847 655,157 Total commercial 845 — 740 1,585 2,271,592 2,273,177 Residential Real Estate: Residential real estate 5,410 1,197 5,686 12,293 1,498,179 1,510,472 Consumer: Home equity 1,596 103 783 2,482 284,652 287,134 Other 26 1 88 115 19,498 19,613 Total consumer 1,622 104 871 2,597 304,150 306,747 Total loans $7,877 $1,301 $7,297 $16,475 $4,073,921 $4,090,396 (Dollars in thousands) Days Past Due December 31, 2019 30-59 60-89 Over 90 Total Past Due Current Total Loans Commercial: Commercial real estate $830 $— $603 $1,433 $1,546,139 $1,547,572 Commercial & industrial 1 — — 1 585,288 585,289 Total commercial 831 — 603 1,434 2,131,427 2,132,861 Residential Real Estate: Residential real estate 4,574 2,155 4,700 11,429 1,437,661 1,449,090 Consumer: Home equity 971 729 996 2,696 288,178 290,874 Other 42 — 88 130 20,044 20,174 Total consumer 1,013 729 1,084 2,826 308,222 311,048 Total loans $6,418 $2,884 $6,387 $15,689 $3,877,310 $3,892,999 Included in past due loans as of March 31, 2020 and December 31, 2019 , were nonaccrual loans of $11.4 million and $11.5 million , respectively. All loans 90 days or more past due at March 31, 2020 and December 31, 2019 were classified as nonaccrual. 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 $450 $603 Commercial & industrial 290 657 Total commercial 740 1,260 Residential Real Estate: Residential real estate 15,423 14,297 Consumer: Home equity 1,667 1,763 Other 88 88 Total consumer 1,755 1,851 Total nonaccrual loans $17,918 $17,408 Accruing loans 90 days or more past due $— $— For nonaccrual loans with a carrying value of $490 thousand as of March 31, 2020 , no ACL was deemed necessary. As of March 31, 2020 and December 31, 2019 , loans secured by one- to four-family residential property amounting to $3.8 million and $5.8 million , respectively, were in process of foreclosure. Nonaccrual loans of $6.5 million and $5.9 million , respectively, were current as to the payment of principal and interest at March 31, 2020 and December 31, 2019 . There were no significant commitments to lend additional funds to borrowers whose loans were on nonaccrual status at March 31, 2020 . The following table presents interest income recognized on nonaccrual loans segregated by loan class: (Dollars in thousands) Three months ended March 31, 2020 Interest Income Recognized Commercial: Commercial real estate $— Commercial & industrial — Total commercial — Residential Real Estate: Residential real estate 168 Consumer: Home equity 23 Other — Total consumer 23 Total $191 Troubled Debt Restructurings A loan that has been modified or renewed is considered to be a troubled debt restructuring when two conditions are met: 1) the borrower is experiencing financial difficulty and 2) concessions are made for the borrower’s benefit that would not otherwise be considered for a borrower or a transaction with similar credit risk characteristics. 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. The Corporation's ACL reflects the effects of a troubled debt restructuring when management reasonably expects at the reporting date that a troubled debt restructuring will be executed with an individual borrower. A troubled debt restructuring is considered reasonably expected no later than the point when management concludes that modification is the best course of action and it is at least reasonably possible that the troubled borrower will accept some form of concession to avoid a default. Reasonably expected troubled debt restructurings and executed troubled debt restructurings are evaluated individually to determine the required ACL. Troubled debt restructurings that did not involve a below-market rate concession and perform in accordance with their modified contractual terms for a reasonable period of time may be included in the Corporation’s existing pools based on the underlying risk characteristics of the loan to measure the ACL. 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 and full collection of principal and interest is in doubt. 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 performing in accordance with their modified contractual terms for a reasonable period of time. 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 $864 thousand and $869 thousand , respectively, at March 31, 2020 and December 31, 2019 . The ACL on loans included specific reserves for these troubled debt restructurings of $95 thousand and $97 thousand , respectively, at March 31, 2020 and December 31, 2019 . For the three months ended March 31, 2020 and 2019 , there were no loans modified as a troubled debt restructuring. For the three months ended March 31, 2020 and 2019 , there were no payment defaults on troubled debt restructured loans modified within the previous 12 months. As of March 31, 2020 , there were no significant commitments to lend additional funds to borrowers whose loans had been restructured in a troubled debt restructuring. The Corporation elected to account for eligible loan modifications under Section 4013 of the CARES Act. To be an eligible loan under Section 4013 of the CARES Act, a loan modification must be (1) related to the COVID-19 pandemic; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the national emergency declared by the President on March 13, 2020 concerning the COVID-19 outbreak (the “national emergency”) or (B) December 31, 2020. Eligible loan modifications are not required to be classified as troubled debt restructured loans and will not be reported as past due provided that they are performing in accordance with the modified terms. Interest income will continue to be recognized in accordance with GAAP unless the loan is placed on nonaccrual status in accordance with the nonaccrual loans accounting policy described above. Individually Analyzed Loans Effective January 1, 2020, individually analyzed loans include nonaccrual commercial loans, loans classified as troubled debt restructured loans, and certain other loans based on the underlying risk characteristics and the discretion of management to individually analyze such loans. As of March 31, 2020 , the carrying value of individually analyzed loans amounted to $1.8 million, of which $1.4 million were considered collateral dependent. For collateral dependent loans where management has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and repayment of the loan is to be provided substantially through the operation or sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. See Note 10 for additional disclosure regarding fair value of individually analyzed collateral dependent loans. The following table presents the carrying value of collateral dependent individually analyzed loans: (Dollars in thousands) As of March 31, 2020 Carrying Value Related Allowance Commercial: Commercial real estate (1) $450 $6 Commercial & industrial (2) 290 290 Total commercial 740 296 Residential Real Estate: Residential real estate (3) 418 — Consumer: Home equity (3) 233 233 Other — — Total consumer 233 233 Total $1,391 $529 (1) Secured by income-producing property. (2) Secured by business assets. (3) Secured by one- to four-family residential properties. Prior to January 1, 2020, a loan was considered impaired when, based on current information and events, it was probable that the Corporation would not be able to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Impaired loans included nonaccrual loans and loans restructured in a troubled debt restructuring. The Corporation identified loss allocations for impaired loans on an individual loan basis. The following is a summary of impaired loans: (Dollars in thousands) As of December 31, 2019 Recorded Investment (1) Unpaid Principal Related Allowance No Related Allowance Recorded Commercial: Commercial real estate $— $— $— Commercial & industrial — — — Total commercial — — — Residential Real Estate: Residential real estate 13,968 14,803 — Consumer: Home equity 1,471 1,472 — Other 88 88 — Total consumer 1,559 1,560 — Subtotal 15,527 16,363 — With Related Allowance Recorded Commercial: Commercial real estate $603 $926 $— Commercial & industrial 657 657 580 Total commercial 1,260 1,583 580 Residential Real Estate: Residential real estate 687 714 95 Consumer: Home equity 292 291 291 Other 18 18 2 Total consumer 310 309 293 Subtotal 2,257 2,606 968 Total impaired loans $17,784 $18,969 $968 Total: Commercial $1,260 $1,583 $580 Residential real estate 14,655 15,517 95 Consumer 1,869 1,869 293 Total impaired loans $17,784 $18,969 $968 (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 table presents the average recorded investment balance of impaired loans and interest income recognized on impaired loans segregated by loan class. (Dollars in thousands) Three months ended March 31, 2019 Average Recorded Investment Interest Income Recognized Commercial: Commercial real estate $976 $1 Commercial & industrial 4,689 54 Total commercial 5,665 55 Residential Real Estate: Residential real estate 10,151 115 Consumer: Home equity 1,480 14 Other 21 — Total consumer 1,501 14 Total $17,317 $184 Credit Quality Indicators Commercial The Corporation utilizes an internal rating system to assign a risk to each of its commercial loans. Loans are rated on a scale of 1 to 10. This scale can be assigned to three broad categories including “pass” for ratings 1 through 6, “special mention” for 7-rated loans, and “classified” for loans rated 8, 9 or 10. The loan rating system takes into consideration parameters including the borrower’s financial condition, the borrower’s performance with respect to loan terms, the adequacy of collateral, the adequacy of guarantees and other credit quality characteristics. The Corporation takes the risk rating into consideration along with other credit attributes in the establishment of an appropriate allowance for credit losses on loans. 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 watched asset list, which generally consists of commercial loans that are risk-rated 6 or worse, highly leverages transaction loans, high-volatility commercial real estate 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. 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. The following table summarizes the Corporation’s loan portfolio by credit quality indicator and loan portfolio segment: (Dollars in thousands) Term Loans Amortized Cost by Origination Year As of March 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Revolving Loans Converted to Term Loans Total Commercial: CRE: Pass $55,517 $235,636 $340,015 $277,871 $157,491 $530,953 $7,445 $2,517 $1,607,445 Special Mention — — — 9,300 — 825 — — 10,125 Classified — — — — — 450 — — 450 Total CRE 55,517 235,636 340,015 287,171 157,491 532,228 7,445 2,517 1,618,020 C&I: Pass 43,850 80,561 59,753 70,374 43,616 189,242 130,463 1,599 619,458 Special Mention — — — 1,866 3,625 17,229 2,128 66 24,914 Classified — — — — — 8,346 2,439 — 10,785 Total C&I 43,850 80,561 59,753 72,240 47,241 214,817 135,030 1,665 655,157 Residential Real Estate: Residential real estate: Current 100,890 339,675 241,997 225,108 177,100 413,409 — — 1,498,179 Past Due — 278 633 3,109 516 7,757 — — 12,293 Total residential real estate 100,890 339,953 242,630 228,217 177,616 421,166 — — 1,510,472 Consumer: Home equity: Current 2,947 9,308 5,510 2,528 1,601 5,473 243,986 13,299 284,652 Past Due — — — 50 — 93 761 1,578 2,482 Total home equity 2,947 9,308 5,510 2,578 1,601 5,566 244,747 14,877 287,134 Other: Current 605 2,975 2,025 2,321 822 10,334 414 2 19,498 Past Due 9 — — — 88 17 — 1 115 Total other 614 2,975 2,025 2,321 910 10,351 414 3 19,613 Total Loans $203,818 $668,433 $649,933 $592,527 $384,859 $1,184,128 $387,636 $19,062 $4,090,396 The following table presents the commercial loan portfolio, segregated by category of credit quality indicator: (Dollars in thousands) As of December 31, 2019 Pass Special Mention Classified Commercial: Commercial real estate $1,546,139 $830 $603 Commercial & industrial 549,416 24,961 10,912 Total commercial $2,095,555 $25,791 $11,515 The following table presents the residential and consumer loan portfolios, segregated by category of credit quality indicator: (Dollars in thousands) As of December 31, 2019 Current Past Due Residential Real Estate: Residential real estate $1,437,661 $11,429 Consumer: Home equity $288,178 $2,696 Other 20,044 130 Total consumer $308,222 $2,826 |
Allowance for Credit Losses on
Allowance for Credit Losses on Loans | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Allowance for Credit Losses on Loans Adoption of Topic 326 Effective January 1, 2020, the Corporation adopted the provisions of Topic 326 using the modified retrospective method. Therefore, prior period comparative information has not been adjusted and continues to be reported under GAAP in effect prior to the adoption of Topic 326. As a result of adopting Topic 326, the Corporation increased the ACL on loans by $6.5 million on January 1, 2020. Accounting Policy Updates Effective January 1, 2020, the Corporation has modified its accounting policy for the ACL on loans. The updated policy is detailed below. The Corporation has made an accounting policy election to exclude accrued interest from the amortized cost basis of loans and reports accrued interest separately in other assets in the Unaudited Consolidated Balance Sheets. The Corporation also excludes accrued interest from the estimate of credit losses. Accrued interest receivable on loans totaled $11.2 million and $11.0 million , respectively, as of March 31, 2020 and December 31, 2019 . The ACL on loans is management’s estimate of expected credit losses over the expected life of the loans at the reporting date. The ACL on loans is increased through a provision for credit losses recognized in the Unaudited Consolidated Statements of Income and by recoveries of amounts previously charged-off. The ACL on loans is reduced by charge-offs on loans. Loan charge-offs are recognized when management believes the collectability of the principal balance outstanding is unlikely. Full or partial charge-offs on collateral dependent individually analyzed loans are generally recognized when the collateral is deemed to be insufficient to support the carrying value of the loan. The level of the ACL on loans is based on management’s ongoing review of all relevant information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the calculation of loss given default and the estimation of expected credit losses. As discussed further below, adjustments to historical information are made for differences in specific risk characteristics, such as differences in underwriting standards, portfolio mix, delinquency level, or term, as well as for changes in environmental conditions, that may not be reflected in historical loss rates. Management employs a process and methodology to estimate the ACL on loans that evaluates both quantitative and qualitative factors. The methodology for evaluating quantitative factors consists of two basic components. The first component involves pooling loans into portfolio segments for loans that share similar risk characteristics. Pooled loan portfolio segments include commercial real estate (including commercial construction), commercial and industrial, residential real estate (including homeowner construction), home equity and other consumer loans. The second component involves individually analyzed loans that do not share similar risk characteristics with loans that are pooled into portfolio segments. Individually analyzed loans include nonaccrual commercial loans, loans classified as troubled debt restructured loans and certain other loans based on the underlying risk characteristics and the discretion of management to individually analyze such loans. For loans that are individually analyzed, the ACL is measured using a discounted cash flow method based upon the loan’s contractual effective interest rate, or at the loan’s observable market price, or, if the loan is collateral dependent, at the fair value of the collateral. Factors management considers when measuring the extent of expected credit loss include payment status, collateral value, borrower financial condition, guarantor support and the probability of collecting scheduled principal and interest payments when due. For collateral dependent loans for which repayment is to be provided substantially through the sale of the collateral, management adjusts the fair value for estimated costs to sell. For collateral dependent loans for which repayment is to be provided substantially through the operation of the collateral, such as accruing troubled debt restructured loans, estimated costs to sell are not incorporated into the measurement. Management may also adjust appraised values to reflect estimated market value declines or apply other discounts to appraised values for unobservable factors resulting from its knowledge of circumstances associated with the collateral. For pooled loans, the Corporation utilizes a discounted cash flow (“DCF”) methodology to estimate credit losses over the expected life of the loan. The life of the loan excludes expected extensions, renewal and modifications, unless 1) the extension or renewal options are included in the original or modified contract terms and not unconditionally cancellable by the Corporation, or 2) management reasonably expects at the reporting date that a troubled debt restructuring will be executed with an individual borrower. The methodology incorporates the probability of default and loss given default, which are identified by default triggers such as past due by 90 or more days, whether a charge-off has occurred, the loan is nonaccrual, the loan has been modified in a troubled debt restructuring or the loan is risk-rated as special mention or classified. The probability of default for the life of the loan is determined by the use of an econometric factor. Management utilizes the national unemployment rate as an econometric factor with a one-year forecast period and one-year straight-line reversion period to the historical mean of its macroeconomic assumption in order to estimate the probability of default for each loan portfolio segment. Utilizing a third party regression model, the forecasted national unemployment rate is correlated with the probability of default for each loan portfolio segment. The DCF methodology combines the probability of default, the loss given default, maturity date and prepayment speeds to estimate a reserve for each loan. The sum of all the loan level reserves are aggregated for each portfolio segment and a loss rate factor is derived. Quantitative loss factors are also supplemented by certain qualitative risk factors reflecting management’s view of how losses may vary from those represented by quantitative loss rates. These qualitative risk factors include: 1) changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; 2) changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments; 3) changes in the nature and volume of the portfolio and in the terms of loans; 4) changes in the experience, ability, and depth of lending management and other relevant staff; 5) changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or rated loans; 6) changes in the quality of the institution’s loan review system; 7) changes in the value of underlying collateral for collateral dependent loans; 8) the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and 9) the effect of other external factors such as legal and regulatory requirements on the level of estimated credit losses in the institution’s existing portfolio. Qualitative loss factors are applied to each portfolio segment with the amounts determined by historical loan charge-offs of a peer group of similar-sized regional banks. Because the methodology is based upon historical experience and trends, current economic data, reasonable and supportable forecasts, as well as management’s judgment, factors may arise that result in different estimations. While significant deterioration in the economic forecast due to the COVID-19 pandemic was estimated in the ACL on loans as of March 31, 2020 , continued uncertainty regarding the severity and duration of the pandemic and related economic effects will continue to affect the ACL. Deteriorating conditions or assumptions could lead to further increases in the ACL on loans. In addition, various regulatory agencies periodically review the ACL on loans. Such agencies may require additions to the allowance based on their judgments about information available to them at the time of their examination. The ACL on loans is an estimate, and ultimate losses may vary from management’s estimate. The following table presents the activity in the ACL on loans for the three months ended March 31, 2020 : (Dollars in thousands) Commercial Consumer CRE C&I Total Commercial Residential Real Estate Home Equity Other Total Consumer Total Beginning Balance $14,741 $3,921 $18,662 $6,615 $1,390 $347 $1,737 $27,014 Adoption of Topic 326 (1) 3,405 3,029 6,434 221 (106 ) (48 ) (154 ) 6,501 Charge-offs (153 ) (294 ) (447 ) — (173 ) (15 ) (188 ) (635 ) Recoveries — 4 4 — 1 7 8 12 Provision 1,743 3,671 5,414 893 323 143 466 6,773 Ending Balance $19,736 $10,331 $30,067 $7,729 $1,435 $434 $1,869 $39,665 (1) Adoption of the CECL accounting standard effective January 1, 2020. For the accounting policy on the allowance for loan losses that was in effect prior to the adoption of Topic 326, see Note 1 to our Annual Report on Form 10-K for the fiscal year ended December 31, 2019. 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 C&I 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 The following table presents the Corporation’s loan portfolio and associated allowance for loan losses by portfolio segment and by impairment methodology: (Dollars in thousands) December 31, 2019 Loans Related Allowance Loans Individually Analyzed for Credit Losses Commercial: Commercial real estate $603 $— Commercial & industrial 657 580 Total commercial 1,260 580 Residential Real Estate: Residential real estate 14,654 95 Consumer: Home equity 1,763 291 Other 106 2 Total consumer 1,869 293 Subtotal 17,783 968 Loans Collectively Evaluated for Credit Losses Commercial: Commercial real estate 1,546,969 14,741 Commercial & industrial 584,632 3,341 Total commercial 2,131,601 18,082 Residential Real Estate: Residential real estate 1,434,436 6,520 Consumer: Home equity 289,111 1,099 Other 20,068 345 Total consumer 309,179 1,444 Subtotal 3,875,216 26,046 Total $3,892,999 $27,014 |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings | Federal Home Loan Bank Advances Advances payable to the FHLB amounted to $1.2 billion and $1.1 billion , respectively, at March 31, 2020 and December 31, 2019 . As of March 31, 2020 and December 31, 2019 , the Bank had access to a $40.0 million unused line of credit and also had remaining available borrowing capacity of $469.5 million and $535.0 million , respectively, with the FHLB. The Bank pledges certain qualified investment securities and loans as collateral to the FHLB. The following table presents maturities and weighted average interest rates on FHLB advances outstanding as of March 31, 2020 : (Dollars in thousands) Scheduled Weighted Average Rate April 1, 2020 to December 31, 2020 $1,031,103 1.46 % 2021 77,222 2.52 2022 813 5.12 2023 5,238 3.80 2024 40,900 2.51 2025 and thereafter 43,258 3.29 Balance at March 31, 2020 $1,198,534 1.64 % |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Capital Requirements | Shareholders' Equity 2019 Stock Repurchase Program The Corporation’s 2019 Stock Repurchase Program authorizes the repurchase of up to 850,000 shares, or approximately 5% , of the Corporation’s outstanding common stock. This authority may be exercised from time to time and in such amounts as market conditions warrant, and subject to regulatory considerations. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, market conditions, and other corporate liquidity requirements and priorities. The 2019 Stock Repurchase Program expires on October 31, 2020 and may be modified, suspended, or discontinued at any time. As of March 31, 2020 , 124,863 shares have been repurchased under the 2019 Stock Repurchase Program, totaling $4.3 million , at an average price of $34.61 . Due to the economic uncertainty resulting from the COVID-19 pandemic, Washington Trust suspended its 2019 Stock Repurchase Program effective March 25, 2020. Regulatory Capital Requirements Capital levels at March 31, 2020 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, 2020 Total Capital (to Risk-Weighted Assets): Corporation $500,239 12.42 % $322,246 8.00 % N/A N/A Bank 480,463 11.93 322,210 8.00 $402,763 10.00 % Tier 1 Capital (to Risk-Weighted Assets): Corporation 468,122 11.62 241,685 6.00 N/A N/A Bank 448,346 11.13 241,658 6.00 322,210 8.00 Common Equity Tier 1 Capital (to Risk-Weighted Assets): Corporation 446,124 11.08 181,264 4.50 N/A N/A Bank 448,346 11.13 181,243 4.50 261,796 6.50 Tier 1 Capital (to Average Assets): (1) Corporation 468,122 8.77 213,488 4.00 N/A N/A Bank 448,346 8.40 213,403 4.00 266,754 5.00 December 31, 2019 Total Capital (to Risk-Weighted Assets): Corporation 494,603 12.94 305,728 8.00 N/A N/A Bank 490,993 12.85 305,693 8.00 382,116 10.00 Tier 1 Capital (to Risk-Weighted Assets): Corporation 467,296 12.23 229,296 6.00 N/A N/A Bank 463,686 12.13 229,270 6.00 305,693 8.00 Common Equity Tier 1 Capital (to Risk-Weighted Assets): Corporation 445,298 11.65 171,972 4.50 N/A N/A Bank 463,686 12.13 171,952 4.50 248,375 6.50 Tier 1 Capital (to Average Assets): (1) Corporation 467,296 9.04 206,682 4.00 N/A N/A Bank 463,686 8.98 206,596 4.00 258,245 5.00 (1) Leverage ratio. In addition to the minimum regulatory capital required for capital adequacy purposes outlined in the table above, the Corporation is required to maintain a minimum capital conservation buffer, in the form of common equity, of 2.50% in order to avoid restrictions on capital distributions and discretionary bonuses. The Corporation’s capital levels exceeded the minimum regulatory capital requirements plus the capital conservation buffer at March 31, 2020 and December 31, 2019 . 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, 2020 and December 31, 2019 , $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 FRB’s capital adequacy guidelines. In response to the recent disruptions in economic conditions caused by the COVID-19 pandemic and the uncertainty of its overall effects on the economy, the FDIC issued an interim final rule (“IFR”) on March 27, 2020 that delays the estimated impact on regulatory capital stemming from the adoption of Topic 326, often referred to as CECL. The amount of capital relief provided in the CECL IFR is an estimate of the approximate difference in ACL under the CECL accounting methodology relative to the previously used incurred loss accounting methodology for the first two years of the five-year transition period. The cumulative difference at the end of the second year of the transition period will then be phased-in to regulatory capital over a three-year transition period beginning in 2022. As discussed in Note 2, the Corporation has elected this five-year phase-in option. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 and December 31, 2019 , the Corporation 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 Corporation obtained the right to receive the difference between 3-month LIBOR and a 4.5% strike. The caps mature in November and December of 2020. As of March 31, 2020 and December 31, 2019 , the Corporation 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, 2020 , the Corporation had two interest rate floor contracts, compared to three interest rate floor contracts as of December 31, 2019 . The total notional amount of the interest rate floor contracts were $200.0 million and $300.0 million , respectively, as of March 31, 2020 and December 31, 2019 . These contracts were designated as cash flow hedges to hedge the interest rate risk associated with a pool of variable rate commercial loans. The Corporation obtained the right to receive the difference between 1-month LIBOR and a 1.0% strike for each of the interest rate floors. During the three months ended March 31, 2020 , one interest rate floor contact matured. The remaining two floors mature in June and September of 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 the Corporation enters into an interest rate swap contract with a commercial loan borrower, it simultaneously enters 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. The Corporation retains the risk that is associated with the potential failure of counterparties and the risk inherent in originating loans. As of March 31, 2020 and December 31, 2019 , Washington Trust had interest rate swap contracts with commercial loan borrowers with notional amounts of $960.5 million and $813.5 million , respectively, and equal amounts of “mirror” swap contracts with third-party financial institutions. These derivatives are not designated as hedges and therefore, changes in fair value are recognized in earnings. 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, 2020 , the notional amounts of risk participation-out agreements and risk participation-in agreements were $61.0 million and $88.6 million , respectively, compared to $61.2 million and $72.9 million , respectively, as of December 31, 2019 . Mortgage 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, 2020 , the notional amounts of interest rate lock commitments and forward sale commitments were $161.7 million and $220.3 million , respectively, compared to $51.4 million and $94.8 million , respectively, as of December 31, 2019 . The following table presents the fair values of derivative instruments in the Corporation’s Unaudited Consolidated Balance Sheets: (Dollars in thousands) Derivative Assets Derivative Liabilities Fair Value Fair Value Balance Sheet Location Mar 31, 2020 Dec 31, 2019 Balance Sheet Location Mar 31, 2020 Dec 31, 2019 Derivatives Designated as Cash Flow Hedging Instruments: Interest rate risk management contracts: Interest rate caps Other assets $— $— Other liabilities $— $— Interest rate swaps Other assets — — Other liabilities 2,489 730 Interest rate floors Other assets 236 3 Other liabilities — — Derivatives not Designated as Hedging Instruments: Loan related derivative contracts: Interest rate swaps with customers Other assets 84,833 27,736 Other liabilities 9 358 Mirror swaps with counterparties Other assets 8 351 Other liabilities 85,108 27,819 Risk participation agreements Other assets 11 1 Other liabilities 3 1 Mortgage loan commitments: Interest rate lock commitments Other assets 4,937 1,097 Other liabilities 105 — Forward sale commitments Other assets 128 30 Other liabilities 3,676 827 Gross amounts 90,153 29,218 91,390 29,735 Less amounts offset in Consolidated Balance Sheets (1) 244 354 244 354 Net amounts presented in Consolidated Balance Sheets 89,909 28,864 91,146 29,381 Less collateral pledged (2) — — 30,051 27,105 Net amounts $89,909 $28,864 $61,095 $2,276 (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, 2020 2019 Derivatives Designated as Cash Flow Hedging Instruments: Interest rate risk management contracts: Interest rate caps $22 $— Interest rate swaps (1,325 ) (466 ) Interest rate floors 253 24 Total ($1,050 ) ($442 ) For derivatives designated as cash flow hedging instruments, see Note 15 for additional disclosure pertaining to the amounts and location of reclassifications from accumulated other comprehensive income into earnings. (Dollars in thousands) Amount of Gain (Loss) Recognized in Income on Derivatives Three months ended March 31, Statement of Income Location 2020 2019 Derivatives not Designated as Hedging Instruments: Loan related derivative contracts: Interest rate swaps with customers Loan related derivative income $58,531 $10,310 Mirror swaps with counterparties Loan related derivative income (56,190 ) (9,604 ) Risk participation agreements Loan related derivative income 114 — Foreign exchange contracts Loan related derivative income — 18 Mortgage loan commitments: Interest rate lock commitments Mortgage banking revenues 3,736 685 Forward sale commitments Mortgage banking revenues (3,634 ) (429 ) Total $2,557 $980 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
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 individually analyzed / 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 $49,751 $27,833 Aggregate principal balance 48,199 27,168 Difference between fair value and principal balance $1,552 $665 Changes in fair value of mortgage loans held for sale accounted for under the fair value option election amounted to an increase of $887 thousand in the three months ended March 31, 2020 , compared to a decrease of $135 thousand in the three months ended March 31, 2019 . 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, 2020 and December 31, 2019 . 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, 2020 and December 31, 2019 . 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, 2020 and December 31, 2019 . 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 Individually Analyzed / Impaired Loans The fair value of collateral dependent loans that are individually analyzed or were previously deemed impaired is determined based upon the appraised 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 to be provided substantially through the sale of the collateral, management adjusts the fair value for estimated costs to sell. For collateral dependent loans for which repayment is to be provided substantially through 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 collateral. Internal valuations may be utilized to determine the fair value of other business assets. Collateral dependent individually analyzed / 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 credit losses on loans. 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, 2020 and December 31, 2019 , 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. 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, 2020 Assets: Available for sale debt securities: Obligations of U.S. government-sponsored enterprises $133,501 $— $133,501 $— Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 764,344 — 764,344 — Individual name issuer trust preferred debt securities 11,096 — 11,096 — Corporate bonds 8,451 — 8,451 — Mortgage loans held for sale 49,751 — 49,751 — Derivative assets 89,909 — 89,909 — Total assets at fair value on a recurring basis $1,057,052 $— $1,057,052 $— Liabilities: Derivative liabilities $91,146 $— $91,146 $— Total liabilities at fair value on a recurring basis $91,146 $— $91,146 $— (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2019 Assets: Available for sale debt securities: Obligations of U.S. government-sponsored enterprises $157,648 $— $157,648 $— Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 719,080 — 719,080 — Individual name issuer trust preferred debt securities 12,579 — 12,579 — Corporate bonds 10,183 — 10,183 — Mortgage loans held for sale 27,833 — 27,833 — Derivative assets 28,864 — 28,864 — Total assets at fair value on a recurring basis $956,187 $— $956,187 $— Liabilities: Derivative liabilities $29,381 $— $29,381 $— Total liabilities at fair value on a recurring basis $29,381 $— $29,381 $— Items Recorded at Fair Value on a Nonrecurring Basis The following table presents the carrying value of assets held at March 31, 2020 , which were written down to fair value during the three months ended March 31, 2020 : (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Collateral dependent individually analyzed CRE loan $444 $— $— $444 Total assets at fair value on a nonrecurring basis $444 $— $— $444 The ACL on all collateral dependent individually analyzed loans amounted to $529 thousand at March 31, 2020 . The following table presents the carrying value of assets held at December 31, 2019 , which were written down to fair value during the year ended December 31, 2019 : (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Collateral dependent impaired loans $1,448 $— $— $1,448 Property acquired through foreclosure or repossession 1,109 — — 1,109 Total assets at fair value on a nonrecurring basis $2,557 $— $— $2,557 The allowance for loan losses on all collateral dependent impaired loans amounted to $871 thousand at December 31, 2019 . 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, 2020 Collateral dependent individually analyzed loans $444 Appraisals of collateral Discount for costs to sell 10% - 100% (42%) Appraisal adjustments (1) 0% - 23% (15%) (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, 2019 Collateral dependent impaired loans $1,448 Appraisals of collateral Discount for costs to sell 0% - 20% (5%) Appraisal adjustments (1) 0% - 100% (67%) Property acquired through foreclosure or repossession $1,109 Appraisals of collateral Discount for costs to sell 12% Appraisal adjustments (1) 22% (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, 2020 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 credit losses on loans $4,050,731 $4,013,945 $— $— $4,013,945 Financial Liabilities: Time deposits $1,208,978 $1,220,528 $— $1,220,528 $— FHLB advances 1,198,534 1,211,630 — 1,211,630 — Junior subordinated debentures 22,681 17,714 — 17,714 — (Dollars in thousands) December 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 $3,865,985 $3,869,192 $— $— $3,869,192 Financial Liabilities: Time deposits $1,069,323 $1,082,830 $— $1,082,830 $— FHLB advances 1,141,464 1,145,242 — 1,145,242 — Junior subordinated debentures 22,681 19,628 — 19,628 — |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The following tables summarize total revenues as presented in the Unaudited Consolidated Statements of Income and the related amounts that 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, 2020 2019 (Dollars in thousands) Revenue (1) ASC 606 Revenue (2) Revenue (1) ASC 606 Revenue (2) Net interest income $32,602 $— $34,584 $— Noninterest income: Asset-based wealth management revenues 8,355 8,355 8,921 8,921 Transaction-based wealth management revenues 334 334 331 331 Total wealth management revenues 8,689 8,689 9,252 9,252 Mortgage banking revenues 6,096 — 2,646 — Card interchange fees 947 947 997 997 Service charges on deposit accounts 860 860 875 875 Loan related derivative income 2,455 — 724 — Income from bank-owned life insurance 564 — 649 — Other income 316 247 224 224 Total noninterest income 19,927 10,743 15,367 11,348 Total revenues $52,529 $10,743 $49,951 $11,348 (1) As reported in the Consolidated Statements of Income. (2) Revenue from contracts with customers in scope of ASC 606. The Corporation recognizes revenue that is transactional in nature and such revenue is earned at a point in time. Revenue that is recognized at a point in time includes card interchange fees (fee income related to debit card transactions), ATM fees, wire transfer fees, overdraft charge fees, and stop-payment and returned check fees. Such revenue is derived from transactional information and is recognized as revenue immediately as the transactions occur or upon providing the service to complete the customer’s transaction. The Corporation recognizes revenue over a period of time, generally monthly, as services are performed and performance obligations are satisfied. Such revenue includes wealth management revenues and service charges on deposit accounts. Wealth management revenues are categorized as either asset-based revenues or transaction-based revenues. Asset-based revenues include trust and investment management fees that are earned based upon a percentage of asset values under administration. Transaction-based revenues include financial planning fees, tax preparation fees, commissions and other service fees. Fee revenue from service charges on deposit accounts represent the service charges assessed to customers who hold deposit accounts at the Bank. The following table presents revenue from contracts with customers based on the timing of revenue recognition: (Dollars in thousands) Three months ended March 31, 2020 2019 Revenue recognized at a point in time: Card interchange fees $947 $997 Service charges on deposit accounts 667 662 Other income 200 179 Revenue recognized over time: Wealth management revenues 8,689 9,252 Service charges on deposit accounts 193 213 Other income 47 45 Total revenues from contracts in scope of Topic 606 $10,743 $11,348 Receivables for revenue from contracts with customers primarily consist of amounts due for wealth management services performed for which the Corporation’s performance obligations have been fully satisfied. Receivables amounted to $4.0 million at March 31, 2020 , compared to $4.5 million at December 31, 2019 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, 2020 and December 31, 2019 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 $905 thousand at both March 31, 2020 and December 31, 2019 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, 2020 | |
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 Non-Qualified Retirement Plans Three months ended March 31, 2020 2019 2020 2019 Net Periodic Benefit Cost: Service cost (1) $541 $509 $43 $31 Interest cost (2) 626 742 116 141 Expected return on plan assets (2) (1,135 ) (1,124 ) — — Amortization of prior service credit (2) — (4 ) — — Recognized net actuarial loss (2) 396 198 140 102 Net periodic benefit cost $428 $321 $299 $274 (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, 2020 2019 2020 2019 Measurement date Dec 31, 2019 Dec 31, 2018 Dec 31, 2019 Dec 31, 2018 Equivalent single discount rate for benefit obligations 3.42% 4.38% 3.30% 4.28% Equivalent single discount rate for service cost 3.54 4.44 3.62 4.48 Equivalent single discount rate for interest cost 3.07 4.12 2.93 3.98 Expected long-term return on plan assets 5.75 5.75 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, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation Arrangements | Share-Based Compensation Arrangements During the three months ended March 31, 2020 , the Corporation granted performance share unit awards and nonvested share unit awards. Performance share awards were granted to certain key employees of the Corporation to 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 determined by the closing price of the Corporation’s common stock on the award date. The weighted average fair value of the performance share awards was $34.22 . The number of shares to be vested will be contingent upon the Corporation’s attainment of certain performance measures as detailed in the performance share award agreements. The performance share awards will be earned over a 3 -year performance period and the current performance assumption estimates that 65,632 shares will be earned. The Corporation granted to certain key employees 3,165 nonvested share units, with 3 -year cliff vesting. The weighted average grant date fair value of the nonvested share units was $51.28 . |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2020 | |
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. The methodologies are periodically reviewed and revised. Results may be restated, when necessary, to reflect changes in organizational structure or allocation methodology. 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 indirect 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 automated teller machines (“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, 2020 2019 2020 2019 2020 2019 2020 2019 Net interest income (expense) $29,009 $27,302 ($67 ) ($127 ) $3,660 $7,409 $32,602 $34,584 Provision for credit losses 7,036 650 — — — — 7,036 650 Net interest income (expense) after provision for credit losses 21,973 26,652 (67 ) (127 ) 3,660 7,409 25,566 33,934 Noninterest income 10,665 5,455 8,689 9,252 573 660 19,927 15,367 Noninterest expenses: Depreciation and amortization expense 619 672 354 365 40 40 1,013 1,077 Other noninterest expenses 18,842 15,758 6,846 6,478 3,752 3,651 29,440 25,887 Total noninterest expenses 19,461 16,430 7,200 6,843 3,792 3,691 30,453 26,964 Income before income taxes 13,177 15,677 1,422 2,282 441 4,378 15,040 22,337 Income tax expense 2,764 3,421 356 617 19 804 3,139 4,842 Net income $10,413 $12,256 $1,066 $1,665 $422 $3,574 $11,901 $17,495 Total assets at period end $4,367,469 $3,884,052 $74,283 $76,657 $1,179,227 $1,194,020 $5,620,979 $5,154,729 Expenditures for long-lived assets 526 1,300 53 292 49 63 628 1,655 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 2019 (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 $16,740 $3,934 $12,806 $14,406 $3,385 $11,021 Net (gains) losses on debt securities reclassified into earnings — — — — — — Net change in fair value of available for sale debt securities 16,740 3,934 12,806 14,406 3,385 11,021 Cash flow hedges: Change in fair value of cash flow hedges (1,402 ) (330 ) (1,072 ) (546 ) (128 ) (418 ) Net cash flow hedge gains (losses) reclassified into earnings (1) 29 7 22 (31 ) (7 ) (24 ) Net change in fair value of cash flow hedges (1,373 ) (323 ) (1,050 ) (577 ) (135 ) (442 ) Defined benefit plan obligations: Amortization of net actuarial losses (2) 536 126 410 300 70 230 Amortization of net prior service credits (2) — — — (4 ) (1 ) (3 ) Net change in defined benefit plan obligations 536 126 410 296 69 227 Total other comprehensive income $15,903 $3,737 $12,166 $14,125 $3,319 $10,806 (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 Gains on Available For Sale Debt Securities Net Unrealized (Losses) Gains on Cash Flow Hedges Defined Benefit Pension Plan Adjustment Total For the three months ended March 31, 2020 Balance at January 1, 2020 $3,226 ($793 ) ($13,670 ) ($11,237 ) Other comprehensive income (loss) before reclassifications 12,806 (1,072 ) — 11,734 Amounts reclassified from accumulated other comprehensive income — 22 410 432 Net other comprehensive income (loss) 12,806 (1,050 ) 410 12,166 Balance at March 31, 2020 $16,032 ($1,843 ) ($13,260 ) $929 (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 For the three months ended March 31, 2019 Balance at January 1, 2019 ($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 ) |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings per Common Share The following table presents the calculation of earnings per common share: Three months ended March 31, 2020 2019 Earnings per common share - basic: Net income $11,901 $17,495 Less dividends and undistributed earnings allocated to participating securities (32 ) (34 ) Net income available to common shareholders $11,869 $17,461 Weighted average common shares 17,345 17,304 Earnings per common share - basic $0.68 $1.01 Earnings per common share - diluted: Net income $11,901 $17,495 Less dividends and undistributed earnings allocated to participating securities (32 ) (34 ) Net income available to common shareholders $11,869 $17,461 Weighted average common shares 17,345 17,304 Dilutive effect of common stock equivalents 96 97 Weighted average diluted common shares 17,441 17,401 Earnings per common share - diluted $0.68 $1.00 Weighted average common stock equivalents, not included in common stock equivalents above because they were anti-dilutive, totaled 152,010 and 87,775 , respectively, for the three months ended March 31, 2020 and 2019 . |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
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. Rental expense for operating leases is recognized on a straight-line basis over the lease term and amounted to $964 thousand and $939 thousand , respectively, for the three months ended March 31, 2020 and 2019 . Variable lease components, such as consumer price index adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities. The following table presents information regarding Corporation’s operating leases: Mar 31, 2020 Dec 31, 2019 Weighted average discount rate 3.68 % 3.67 % Operating leases not yet commenced 1 1 Range of lease expiration dates 1 month - 21 years 4 months - 21 years Range of lease renewal options 1 year - 5 years 1 year - 5 years Weighted average remaining lease term 13.9 years 14.0 years The following table presents the undiscounted annual lease payments under the terms of the Corporation’s operating leases at March 31, 2020 , including a reconciliation to the present value of operating lease liabilities recognized in the Corporation’s Unaudited Consolidated Balance Sheets: (Dollars in thousands) April 1, 2020 to December 31, 2020 $2,560 2021 3,290 2022 3,165 2023 3,097 2024 2,904 2025 and thereafter 21,818 Total operating lease payments (1) 36,834 Less interest 8,650 Present value of operating lease liabilities (2) $28,184 (1) Includes $2.6 million related to options to extend lease terms that are reasonably certain of being exercised. (2) Includes short-term operating lease liabilities of $2.4 million . The following table presents the components of total lease expense and operating cash flows: (Dollars in thousands) Three months ended March 31, 2020 2020 2019 Lease Expense: Operating lease expense $951 $928 Variable lease expense 13 11 Total lease expense (1) $964 $939 Cash Paid: Cash paid reducing operating lease liabilities $934 $920 (1) Included in net occupancy expenses in the Unaudited Consolidated Income Statement. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Adoption of Topic 326 As disclosed in Note 2, Topic 326 requires the measurement of expected lifetime credit losses for unfunded commitments that are considered off-balance sheet credit exposures. The Corporation adopted the provisions of Topic 326 effective January 1, 2020 using the modified retrospective method. Therefore, the prior period comparative information has not been adjusted and continues to be reported under GAAP in effect prior to the adoption of Topic 326. As a result of adopting Topic 326, the Corporation recognized an increase in the ACL on unfunded commitments of $1.5 million on January 1, 2020. Accounting Policy Updates Effective January 1, 2020, the Corporation has modified its accounting policy for the ACL on unfunded commitments. The updated policy is detailed below. The ACL on unfunded commitments is management’s estimate of expected credit losses over the expected contractual term (or life) in which the Corporation is exposed to credit risk via the a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Corporation. Unfunded commitments for home equity lines of credit and commercial demand loans are considered unconditionally cancellable for regulatory capital purposes and, therefore, are excluded from the calculation to estimate the ACL on unfunded commitments. For each portfolio, estimated loss rates and funding factors are applied to the corresponding balance of unfunded commitments. For each portfolio, the estimated loss rates applied to unfunded commitments are the same quantitative and qualitative loss rates applied to the corresponding on-balance sheet amounts in determining the ACL on loans. The estimated funding factor applied to unfunded commitments represents the likelihood that the funding will occur and is based upon the Corporation’s average historical utilization rate for each portfolio. The ACL on unfunded commitments is included in other liabilities in the Unaudited Consolidated Balance Sheets. The ACL on unfunded commitments is adjusted through a provision for credit losses recognized in the Unaudited Consolidated Statements of Income. 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. Financial Instruments Whose Contract Amounts Represent Credit Risk (Unfunded Commitments) 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 $9.4 million and $13.7 million , respectively, as of March 31, 2020 and December 31, 2019 . At March 31, 2020 and December 31, 2019 , 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, 2020 and 2019 . A substantial portion of the standby letters of credit were supported by pledged collateral. The collateral obtained is determined based on management’s credit evaluation of the customer. Should the Corporation be required to make payments to the beneficiary, repayment from the customer to the Corporation is required. Financial Instruments Whose Notional Amounts Exceed the Amount of Credit Risk Mortgage 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. Loan Related Derivative Contracts The Corporation’s credit policies with respect to interest rate swap agreements with commercial borrowers 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 $437,120 $471,338 Home equity lines 300,122 295,687 Other loans 85,174 88,613 Standby letters of credit 9,431 13,710 Financial instruments whose notional amounts exceed the amounts of credit risk: Mortgage loan commitments: Interest rate lock commitments 161,720 51,439 Forward sale commitments 220,284 94,829 Loan related derivative contracts: Interest rate swaps with customers 960,481 813,458 Mirror swaps with counterparties 960,481 813,458 Risk participation-in agreements 88,623 72,866 Interest rate risk management contracts: Interest rate swaps 60,000 60,000 See Note 9 for additional disclosure pertaining to derivative financial instruments. The ACL on funded commitments amounted to $2.0 million at March 31, 2020 , compared to $293 thousand at December 31, 2019 . The activity in the ACL on unfunded commitments for the three months ended March 31, 2020 is presented below: (Dollars in thousands) Commercial Consumer CRE C&I Total Commercial Residential Real Estate Home Equity Other Total Consumer Total Beginning Balance $136 $144 $280 $6 $— $7 $7 $293 Adoption of Topic 326 (1) 817 626 1,443 34 — 6 6 1,483 Provision 179 77 256 2 — 5 5 263 Ending Balance $1,132 $847 $1,979 $42 $— $18 $18 $2,039 (1) Adoption of the CECL accounting standard effective January 1, 2020. Other Contingencies Litigation The Corporation is involved in various claims and legal proceedings arising out of the ordinary course of business. Management is of the opinion, based on its review with counsel of the development of such matters to date, that the ultimate disposition of such matters will not materially affect the consolidated balance sheets or statements of income of the Corporation. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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. 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. |
Securities (Policies)
Securities (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Allowance for Credit Losses on Securities | Effective January 1, 2020, the Corporation has modified its accounting policy for the assessment of available for sale debt securities for impairment. The updated policy is detailed below. The Corporation has made an accounting policy election to exclude accrued interest from the amortized cost basis of debt securities and reports accrued interest separately in other assets in the Unaudited Consolidated Balance Sheets. The Corporation also excludes accrued interest from the estimate of credit losses. Accrued interest receivable on available for sale debt securities totaled $2.8 million and $2.9 million , respectively, as of March 31, 2020 and December 31, 2019 . A debt security is placed on nonaccrual status at the time any principal or interest payments become more than 90 days delinquent or if full collection of interest or principal becomes uncertain. Accrued interest for a debt security placed on nonaccrual is reversed against interest income. There were no debt securities on nonaccrual status and therefore there was no accrued interest related to debt securities reversed against interest income for the three months ended March 31, 2020 and 2019. For available for sale debt securities in an unrealized loss position, management first assesses whether the Corporation intends to sell, or if it is likely that the Corporation will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through a provision for credit losses charge to earnings. For debt securities available for sale that do not meet either these criteria, management evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers both quantitative and qualitative factors. A substantial portion of available for sale debt securities held by the Corporation are obligations issued by U.S. government agency and U.S. government-sponsored enterprises, including mortgage-backed securities. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major credit rating agencies and have a long history of no credit losses. For these securities, management takes into consideration the long history of no credit losses and other factors to assess the risk of nonpayment even if the U.S. government were to default. As such, the Corporation has elected the practical expedient of a zero loss estimate due to credit for these securities. For available for sale debt securities that are not guaranteed by U.S. government agencies and U.S. government-sponsored enterprises, such as individual name issuer trust preferred debt securities and corporate bonds, management utilizes a third party credit modeling tool based on observable market data, which assists management in identifying any potential credit risk associated with its available for sale debt securities. This model estimates probability of default, loss given default and exposure at default for each security. In addition, qualitative factors are also considered, including the extent to which fair value is less than amortized cost, changes to the credit rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If a credit loss exists based on the results of this assessment, an ACL (contra asset) is recorded, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is considered market-related and is recognized in other comprehensive income, net of taxes. Changes in the ACL on available for sale debt securities are recorded as provision for (or reversal of) credit losses. Losses are charged against the ACL when management believes the uncollectibility of an available for sale debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. |
Allowance for Credit Losses o_2
Allowance for Credit Losses on Loans (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Allowance for Credit Losses on Loans | Effective January 1, 2020, the Corporation has modified its accounting policy for the ACL on loans. The updated policy is detailed below. The Corporation has made an accounting policy election to exclude accrued interest from the amortized cost basis of loans and reports accrued interest separately in other assets in the Unaudited Consolidated Balance Sheets. The Corporation also excludes accrued interest from the estimate of credit losses. Accrued interest receivable on loans totaled $11.2 million and $11.0 million , respectively, as of March 31, 2020 and December 31, 2019 . The ACL on loans is management’s estimate of expected credit losses over the expected life of the loans at the reporting date. The ACL on loans is increased through a provision for credit losses recognized in the Unaudited Consolidated Statements of Income and by recoveries of amounts previously charged-off. The ACL on loans is reduced by charge-offs on loans. Loan charge-offs are recognized when management believes the collectability of the principal balance outstanding is unlikely. Full or partial charge-offs on collateral dependent individually analyzed loans are generally recognized when the collateral is deemed to be insufficient to support the carrying value of the loan. The level of the ACL on loans is based on management’s ongoing review of all relevant information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the calculation of loss given default and the estimation of expected credit losses. As discussed further below, adjustments to historical information are made for differences in specific risk characteristics, such as differences in underwriting standards, portfolio mix, delinquency level, or term, as well as for changes in environmental conditions, that may not be reflected in historical loss rates. Management employs a process and methodology to estimate the ACL on loans that evaluates both quantitative and qualitative factors. The methodology for evaluating quantitative factors consists of two basic components. The first component involves pooling loans into portfolio segments for loans that share similar risk characteristics. Pooled loan portfolio segments include commercial real estate (including commercial construction), commercial and industrial, residential real estate (including homeowner construction), home equity and other consumer loans. The second component involves individually analyzed loans that do not share similar risk characteristics with loans that are pooled into portfolio segments. Individually analyzed loans include nonaccrual commercial loans, loans classified as troubled debt restructured loans and certain other loans based on the underlying risk characteristics and the discretion of management to individually analyze such loans. For loans that are individually analyzed, the ACL is measured using a discounted cash flow method based upon the loan’s contractual effective interest rate, or at the loan’s observable market price, or, if the loan is collateral dependent, at the fair value of the collateral. Factors management considers when measuring the extent of expected credit loss include payment status, collateral value, borrower financial condition, guarantor support and the probability of collecting scheduled principal and interest payments when due. For collateral dependent loans for which repayment is to be provided substantially through the sale of the collateral, management adjusts the fair value for estimated costs to sell. For collateral dependent loans for which repayment is to be provided substantially through the operation of the collateral, such as accruing troubled debt restructured loans, estimated costs to sell are not incorporated into the measurement. Management may also adjust appraised values to reflect estimated market value declines or apply other discounts to appraised values for unobservable factors resulting from its knowledge of circumstances associated with the collateral. For pooled loans, the Corporation utilizes a discounted cash flow (“DCF”) methodology to estimate credit losses over the expected life of the loan. The life of the loan excludes expected extensions, renewal and modifications, unless 1) the extension or renewal options are included in the original or modified contract terms and not unconditionally cancellable by the Corporation, or 2) management reasonably expects at the reporting date that a troubled debt restructuring will be executed with an individual borrower. The methodology incorporates the probability of default and loss given default, which are identified by default triggers such as past due by 90 or more days, whether a charge-off has occurred, the loan is nonaccrual, the loan has been modified in a troubled debt restructuring or the loan is risk-rated as special mention or classified. The probability of default for the life of the loan is determined by the use of an econometric factor. Management utilizes the national unemployment rate as an econometric factor with a one-year forecast period and one-year straight-line reversion period to the historical mean of its macroeconomic assumption in order to estimate the probability of default for each loan portfolio segment. Utilizing a third party regression model, the forecasted national unemployment rate is correlated with the probability of default for each loan portfolio segment. The DCF methodology combines the probability of default, the loss given default, maturity date and prepayment speeds to estimate a reserve for each loan. The sum of all the loan level reserves are aggregated for each portfolio segment and a loss rate factor is derived. Quantitative loss factors are also supplemented by certain qualitative risk factors reflecting management’s view of how losses may vary from those represented by quantitative loss rates. These qualitative risk factors include: 1) changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; 2) changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the portfolio, including the condition of various market segments; 3) changes in the nature and volume of the portfolio and in the terms of loans; 4) changes in the experience, ability, and depth of lending management and other relevant staff; 5) changes in the volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or rated loans; 6) changes in the quality of the institution’s loan review system; 7) changes in the value of underlying collateral for collateral dependent loans; 8) the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and 9) the effect of other external factors such as legal and regulatory requirements on the level of estimated credit losses in the institution’s existing portfolio. Qualitative loss factors are applied to each portfolio segment with the amounts determined by historical loan charge-offs of a peer group of similar-sized regional banks. Because the methodology is based upon historical experience and trends, current economic data, reasonable and supportable forecasts, as well as management’s judgment, factors may arise that result in different estimations. While significant deterioration in the economic forecast due to the COVID-19 pandemic was estimated in the ACL on loans as of March 31, 2020 , continued uncertainty regarding the severity and duration of the pandemic and related economic effects will continue to affect the ACL. Deteriorating conditions or assumptions could lead to further increases in the ACL on loans. In addition, various regulatory agencies periodically review the ACL on loans. Such agencies may require additions to the allowance based on their judgments about information available to them at the time of their examination. The ACL on loans is an estimate, and ultimate losses may vary from management’s estimate. |
Commitment and Contingencies (P
Commitment and Contingencies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Allowance for Credit Losses on Unfunded Commitments | Effective January 1, 2020, the Corporation has modified its accounting policy for the ACL on unfunded commitments. The updated policy is detailed below. The ACL on unfunded commitments is management’s estimate of expected credit losses over the expected contractual term (or life) in which the Corporation is exposed to credit risk via the a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Corporation. Unfunded commitments for home equity lines of credit and commercial demand loans are considered unconditionally cancellable for regulatory capital purposes and, therefore, are excluded from the calculation to estimate the ACL on unfunded commitments. For each portfolio, estimated loss rates and funding factors are applied to the corresponding balance of unfunded commitments. For each portfolio, the estimated loss rates applied to unfunded commitments are the same quantitative and qualitative loss rates applied to the corresponding on-balance sheet amounts in determining the ACL on loans. The estimated funding factor applied to unfunded commitments represents the likelihood that the funding will occur and is based upon the Corporation’s average historical utilization rate for each portfolio. The ACL on unfunded commitments is included in other liabilities in the Unaudited Consolidated Balance Sheets. The ACL on unfunded commitments is adjusted through a provision for credit losses recognized in the Unaudited Consolidated Statements of Income. |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments | The following table presents the amortized cost, gross unrealized holding gains, gross unrealized holding losses, ACL on securities and fair value of securities by major security type and class of security: (Dollars in thousands) March 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Allowance for Credit Losses Fair Value Available for Sale Debt Securities: Obligations of U.S. government-sponsored enterprises $132,262 $1,408 ($169 ) $— $133,501 Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 739,701 24,689 (46 ) — 764,344 Individual name issuer trust preferred debt securities 13,328 — (2,232 ) — 11,096 Corporate bonds 11,144 — (2,693 ) — 8,451 Total available for sale debt securities $896,435 $26,097 ($5,140 ) $— $917,392 Total securities $896,435 $26,097 ($5,140 ) $— $917,392 The following table presents the amortized cost, gross unrealized holding gains, gross unrealized holding losses and fair value of securities by major security type and class of security: (Dollars in thousands) December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Available for Sale Debt Securities: Obligations of U.S. government-sponsored enterprises $157,255 $626 ($233 ) $157,648 Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 713,553 8,491 (2,964 ) 719,080 Individual name issuer trust preferred debt securities 13,324 — (745 ) 12,579 Corporate bonds 11,141 — (958 ) 10,183 Total available for sale debt securities $895,273 $9,117 ($4,900 ) $899,490 Total securities $895,273 $9,117 ($4,900 ) $899,490 |
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, 2020 Amortized Cost Fair Value Due in one year or less $110,903 $114,238 Due after one year to five years 339,369 349,303 Due after five years to ten years 269,847 273,824 Due after ten years 176,316 180,027 Total debt securities $896,435 $917,392 |
Securities in a Continuous Unrealized Loss Position | The following table summarizes available for sale debt securities in an unrealized loss position for which an allowance for credit losses on securities has not been recorded at March 31, 2020, 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, 2020 # Fair Unrealized # Fair Value Unrealized Losses # Fair Value Unrealized Losses Obligations of U.S. government-sponsored enterprises 1 $24,831 ($169 ) — $— $— 1 $24,831 ($169 ) Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 4 12,178 (46 ) — — — 4 12,178 (46 ) Individual name issuer trust preferred debt securities — — — 5 11,096 (2,232 ) 5 11,096 (2,232 ) Corporate bonds — — — 3 8,451 (2,693 ) 3 8,451 (2,693 ) Total 5 $37,009 ($215 ) 8 $19,547 ($4,925 ) 13 $56,556 ($5,140 ) The following tables summarize temporarily impaired securities, segregated by length of time the securities have been in a continuous unrealized loss position: (Dollars in thousands) Less than 12 Months 12 Months or Longer Total December 31, 2019 # Fair Value Unrealized Losses # Fair Value Unrealized Losses # Fair Value Unrealized Losses Obligations of U.S. government-sponsored enterprises 3 $20,364 ($136 ) 3 $49,902 ($97 ) 6 $70,266 ($233 ) Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 4 41,150 (56 ) 23 216,804 (2,908 ) 27 257,954 (2,964 ) Individual name issuer trust preferred debt securities — — — 5 12,579 (745 ) 5 12,579 (745 ) Corporate bonds — — — 3 10,183 (958 ) 3 10,183 (958 ) Total 7 $61,514 ($192 ) 34 $289,468 ($4,708 ) 41 $350,982 ($4,900 ) |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Summary of Loans | The following is a summary of loans: (Dollars in thousands) March 31, December 31, 2019 Commercial: Commercial real estate (1) $1,618,020 $1,547,572 Commercial & industrial (2) 655,157 585,289 Total commercial 2,273,177 2,132,861 Residential Real Estate: Residential real estate (3) 1,510,472 1,449,090 Consumer: Home equity 287,134 290,874 Other (4) 19,613 20,174 Total consumer 306,747 311,048 Total loans (5) $4,090,396 $3,892,999 (1) Commercial real estate (“CRE”) 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) Commercial and industrial (“C&I”) consists of loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate. (3) Residential real estate consists of mortgage and homeowner construction loans secured by one- to four-family residential properties. (4) Other consists of loans to individuals secured by general aviation aircraft and other personal installment loans. (5) Includes net unamortized loan origination costs of $5.2 million and $5.3 million , respectively, at March 31, 2020 and December 31, 2019 and net unamortized premiums on purchased loans of $724 thousand and $995 thousand , respectively, at March 31, 2020 and December 31, 2019 . |
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, 2020 30-59 60-89 Over 90 Total Past Due Current Total Loans Commercial: Commercial real estate $825 $— $450 $1,275 $1,616,745 $1,618,020 Commercial & industrial 20 — 290 310 654,847 655,157 Total commercial 845 — 740 1,585 2,271,592 2,273,177 Residential Real Estate: Residential real estate 5,410 1,197 5,686 12,293 1,498,179 1,510,472 Consumer: Home equity 1,596 103 783 2,482 284,652 287,134 Other 26 1 88 115 19,498 19,613 Total consumer 1,622 104 871 2,597 304,150 306,747 Total loans $7,877 $1,301 $7,297 $16,475 $4,073,921 $4,090,396 (Dollars in thousands) Days Past Due December 31, 2019 30-59 60-89 Over 90 Total Past Due Current Total Loans Commercial: Commercial real estate $830 $— $603 $1,433 $1,546,139 $1,547,572 Commercial & industrial 1 — — 1 585,288 585,289 Total commercial 831 — 603 1,434 2,131,427 2,132,861 Residential Real Estate: Residential real estate 4,574 2,155 4,700 11,429 1,437,661 1,449,090 Consumer: Home equity 971 729 996 2,696 288,178 290,874 Other 42 — 88 130 20,044 20,174 Total consumer 1,013 729 1,084 2,826 308,222 311,048 Total loans $6,418 $2,884 $6,387 $15,689 $3,877,310 $3,892,999 |
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 $450 $603 Commercial & industrial 290 657 Total commercial 740 1,260 Residential Real Estate: Residential real estate 15,423 14,297 Consumer: Home equity 1,667 1,763 Other 88 88 Total consumer 1,755 1,851 Total nonaccrual loans $17,918 $17,408 Accruing loans 90 days or more past due $— $— For nonaccrual loans with a carrying value of $490 thousand as of March 31, 2020 , no ACL was deemed necessary. As of March 31, 2020 and December 31, 2019 , loans secured by one- to four-family residential property amounting to $3.8 million and $5.8 million , respectively, were in process of foreclosure. Nonaccrual loans of $6.5 million and $5.9 million , respectively, were current as to the payment of principal and interest at March 31, 2020 and December 31, 2019 . There were no significant commitments to lend additional funds to borrowers whose loans were on nonaccrual status at March 31, 2020 . The following table presents interest income recognized on nonaccrual loans segregated by loan class: (Dollars in thousands) Three months ended March 31, 2020 Interest Income Recognized Commercial: Commercial real estate $— Commercial & industrial — Total commercial — Residential Real Estate: Residential real estate 168 Consumer: Home equity 23 Other — Total consumer 23 Total $191 |
Collateral Dependent Individually Analyzed Loans | The following table presents the carrying value of collateral dependent individually analyzed loans: (Dollars in thousands) As of March 31, 2020 Carrying Value Related Allowance Commercial: Commercial real estate (1) $450 $6 Commercial & industrial (2) 290 290 Total commercial 740 296 Residential Real Estate: Residential real estate (3) 418 — Consumer: Home equity (3) 233 233 Other — — Total consumer 233 233 Total $1,391 $529 (1) Secured by income-producing property. (2) Secured by business assets. (3) Secured by one- to four-family residential properties. |
Impaired Loans | Prior to January 1, 2020, a loan was considered impaired when, based on current information and events, it was probable that the Corporation would not be able to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Impaired loans included nonaccrual loans and loans restructured in a troubled debt restructuring. The Corporation identified loss allocations for impaired loans on an individual loan basis. The following is a summary of impaired loans: (Dollars in thousands) As of December 31, 2019 Recorded Investment (1) Unpaid Principal Related Allowance No Related Allowance Recorded Commercial: Commercial real estate $— $— $— Commercial & industrial — — — Total commercial — — — Residential Real Estate: Residential real estate 13,968 14,803 — Consumer: Home equity 1,471 1,472 — Other 88 88 — Total consumer 1,559 1,560 — Subtotal 15,527 16,363 — With Related Allowance Recorded Commercial: Commercial real estate $603 $926 $— Commercial & industrial 657 657 580 Total commercial 1,260 1,583 580 Residential Real Estate: Residential real estate 687 714 95 Consumer: Home equity 292 291 291 Other 18 18 2 Total consumer 310 309 293 Subtotal 2,257 2,606 968 Total impaired loans $17,784 $18,969 $968 Total: Commercial $1,260 $1,583 $580 Residential real estate 14,655 15,517 95 Consumer 1,869 1,869 293 Total impaired loans $17,784 $18,969 $968 (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 table presents the average recorded investment balance of impaired loans and interest income recognized on impaired loans segregated by loan class. (Dollars in thousands) Three months ended March 31, 2019 Average Recorded Investment Interest Income Recognized Commercial: Commercial real estate $976 $1 Commercial & industrial 4,689 54 Total commercial 5,665 55 Residential Real Estate: Residential real estate 10,151 115 Consumer: Home equity 1,480 14 Other 21 — Total consumer 1,501 14 Total $17,317 $184 |
Credit Quality Indicators | The following table summarizes the Corporation’s loan portfolio by credit quality indicator and loan portfolio segment: (Dollars in thousands) Term Loans Amortized Cost by Origination Year As of March 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Revolving Loans Converted to Term Loans Total Commercial: CRE: Pass $55,517 $235,636 $340,015 $277,871 $157,491 $530,953 $7,445 $2,517 $1,607,445 Special Mention — — — 9,300 — 825 — — 10,125 Classified — — — — — 450 — — 450 Total CRE 55,517 235,636 340,015 287,171 157,491 532,228 7,445 2,517 1,618,020 C&I: Pass 43,850 80,561 59,753 70,374 43,616 189,242 130,463 1,599 619,458 Special Mention — — — 1,866 3,625 17,229 2,128 66 24,914 Classified — — — — — 8,346 2,439 — 10,785 Total C&I 43,850 80,561 59,753 72,240 47,241 214,817 135,030 1,665 655,157 Residential Real Estate: Residential real estate: Current 100,890 339,675 241,997 225,108 177,100 413,409 — — 1,498,179 Past Due — 278 633 3,109 516 7,757 — — 12,293 Total residential real estate 100,890 339,953 242,630 228,217 177,616 421,166 — — 1,510,472 Consumer: Home equity: Current 2,947 9,308 5,510 2,528 1,601 5,473 243,986 13,299 284,652 Past Due — — — 50 — 93 761 1,578 2,482 Total home equity 2,947 9,308 5,510 2,578 1,601 5,566 244,747 14,877 287,134 Other: Current 605 2,975 2,025 2,321 822 10,334 414 2 19,498 Past Due 9 — — — 88 17 — 1 115 Total other 614 2,975 2,025 2,321 910 10,351 414 3 19,613 Total Loans $203,818 $668,433 $649,933 $592,527 $384,859 $1,184,128 $387,636 $19,062 $4,090,396 The following table presents the commercial loan portfolio, segregated by category of credit quality indicator: (Dollars in thousands) As of December 31, 2019 Pass Special Mention Classified Commercial: Commercial real estate $1,546,139 $830 $603 Commercial & industrial 549,416 24,961 10,912 Total commercial $2,095,555 $25,791 $11,515 The following table presents the residential and consumer loan portfolios, segregated by category of credit quality indicator: (Dollars in thousands) As of December 31, 2019 Current Past Due Residential Real Estate: Residential real estate $1,437,661 $11,429 Consumer: Home equity $288,178 $2,696 Other 20,044 130 Total consumer $308,222 $2,826 |
Allowance for Credit Losses o_3
Allowance for Credit Losses on Loans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Allowance for Credit Losses on Loans Rollforward | The following table presents the activity in the ACL on loans for the three months ended March 31, 2020 : (Dollars in thousands) Commercial Consumer CRE C&I Total Commercial Residential Real Estate Home Equity Other Total Consumer Total Beginning Balance $14,741 $3,921 $18,662 $6,615 $1,390 $347 $1,737 $27,014 Adoption of Topic 326 (1) 3,405 3,029 6,434 221 (106 ) (48 ) (154 ) 6,501 Charge-offs (153 ) (294 ) (447 ) — (173 ) (15 ) (188 ) (635 ) Recoveries — 4 4 — 1 7 8 12 Provision 1,743 3,671 5,414 893 323 143 466 6,773 Ending Balance $19,736 $10,331 $30,067 $7,729 $1,435 $434 $1,869 $39,665 (1) Adoption of the CECL accounting standard effective January 1, 2020. For the accounting policy on the allowance for loan losses that was in effect prior to the adoption of Topic 326, see Note 1 to our Annual Report on Form 10-K for the fiscal year ended December 31, 2019. 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 C&I 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 |
Schedule of Allowance for Loan Loss by Segment & Impairment Methodology | The following table presents the Corporation’s loan portfolio and associated allowance for loan losses by portfolio segment and by impairment methodology: (Dollars in thousands) December 31, 2019 Loans Related Allowance Loans Individually Analyzed for Credit Losses Commercial: Commercial real estate $603 $— Commercial & industrial 657 580 Total commercial 1,260 580 Residential Real Estate: Residential real estate 14,654 95 Consumer: Home equity 1,763 291 Other 106 2 Total consumer 1,869 293 Subtotal 17,783 968 Loans Collectively Evaluated for Credit Losses Commercial: Commercial real estate 1,546,969 14,741 Commercial & industrial 584,632 3,341 Total commercial 2,131,601 18,082 Residential Real Estate: Residential real estate 1,434,436 6,520 Consumer: Home equity 289,111 1,099 Other 20,068 345 Total consumer 309,179 1,444 Subtotal 3,875,216 26,046 Total $3,892,999 $27,014 |
Federal Home Loan Bank Advance
Federal Home Loan Bank Advance (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Federal Home Loan Bank Advances Maturity Summary | The following table presents maturities and weighted average interest rates on FHLB advances outstanding as of March 31, 2020 : (Dollars in thousands) Scheduled Weighted Average Rate April 1, 2020 to December 31, 2020 $1,031,103 1.46 % 2021 77,222 2.52 2022 813 5.12 2023 5,238 3.80 2024 40,900 2.51 2025 and thereafter 43,258 3.29 Balance at March 31, 2020 $1,198,534 1.64 % |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [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, 2020 Total Capital (to Risk-Weighted Assets): Corporation $500,239 12.42 % $322,246 8.00 % N/A N/A Bank 480,463 11.93 322,210 8.00 $402,763 10.00 % Tier 1 Capital (to Risk-Weighted Assets): Corporation 468,122 11.62 241,685 6.00 N/A N/A Bank 448,346 11.13 241,658 6.00 322,210 8.00 Common Equity Tier 1 Capital (to Risk-Weighted Assets): Corporation 446,124 11.08 181,264 4.50 N/A N/A Bank 448,346 11.13 181,243 4.50 261,796 6.50 Tier 1 Capital (to Average Assets): (1) Corporation 468,122 8.77 213,488 4.00 N/A N/A Bank 448,346 8.40 213,403 4.00 266,754 5.00 December 31, 2019 Total Capital (to Risk-Weighted Assets): Corporation 494,603 12.94 305,728 8.00 N/A N/A Bank 490,993 12.85 305,693 8.00 382,116 10.00 Tier 1 Capital (to Risk-Weighted Assets): Corporation 467,296 12.23 229,296 6.00 N/A N/A Bank 463,686 12.13 229,270 6.00 305,693 8.00 Common Equity Tier 1 Capital (to Risk-Weighted Assets): Corporation 445,298 11.65 171,972 4.50 N/A N/A Bank 463,686 12.13 171,952 4.50 248,375 6.50 Tier 1 Capital (to Average Assets): (1) Corporation 467,296 9.04 206,682 4.00 N/A N/A Bank 463,686 8.98 206,596 4.00 258,245 5.00 (1) Leverage ratio. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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) Derivative Assets Derivative Liabilities Fair Value Fair Value Balance Sheet Location Mar 31, 2020 Dec 31, 2019 Balance Sheet Location Mar 31, 2020 Dec 31, 2019 Derivatives Designated as Cash Flow Hedging Instruments: Interest rate risk management contracts: Interest rate caps Other assets $— $— Other liabilities $— $— Interest rate swaps Other assets — — Other liabilities 2,489 730 Interest rate floors Other assets 236 3 Other liabilities — — Derivatives not Designated as Hedging Instruments: Loan related derivative contracts: Interest rate swaps with customers Other assets 84,833 27,736 Other liabilities 9 358 Mirror swaps with counterparties Other assets 8 351 Other liabilities 85,108 27,819 Risk participation agreements Other assets 11 1 Other liabilities 3 1 Mortgage loan commitments: Interest rate lock commitments Other assets 4,937 1,097 Other liabilities 105 — Forward sale commitments Other assets 128 30 Other liabilities 3,676 827 Gross amounts 90,153 29,218 91,390 29,735 Less amounts offset in Consolidated Balance Sheets (1) 244 354 244 354 Net amounts presented in Consolidated Balance Sheets 89,909 28,864 91,146 29,381 Less collateral pledged (2) — — 30,051 27,105 Net amounts $89,909 $28,864 $61,095 $2,276 (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, 2020 2019 Derivatives Designated as Cash Flow Hedging Instruments: Interest rate risk management contracts: Interest rate caps $22 $— Interest rate swaps (1,325 ) (466 ) Interest rate floors 253 24 Total ($1,050 ) ($442 ) For derivatives designated as cash flow hedging instruments, see Note 15 for additional disclosure pertaining to the amounts and location of reclassifications from accumulated other comprehensive income into earnings. (Dollars in thousands) Amount of Gain (Loss) Recognized in Income on Derivatives Three months ended March 31, Statement of Income Location 2020 2019 Derivatives not Designated as Hedging Instruments: Loan related derivative contracts: Interest rate swaps with customers Loan related derivative income $58,531 $10,310 Mirror swaps with counterparties Loan related derivative income (56,190 ) (9,604 ) Risk participation agreements Loan related derivative income 114 — Foreign exchange contracts Loan related derivative income — 18 Mortgage loan commitments: Interest rate lock commitments Mortgage banking revenues 3,736 685 Forward sale commitments Mortgage banking revenues (3,634 ) (429 ) Total $2,557 $980 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 $49,751 $27,833 Aggregate principal balance 48,199 27,168 Difference between fair value and principal balance $1,552 $665 |
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, 2020 Assets: Available for sale debt securities: Obligations of U.S. government-sponsored enterprises $133,501 $— $133,501 $— Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 764,344 — 764,344 — Individual name issuer trust preferred debt securities 11,096 — 11,096 — Corporate bonds 8,451 — 8,451 — Mortgage loans held for sale 49,751 — 49,751 — Derivative assets 89,909 — 89,909 — Total assets at fair value on a recurring basis $1,057,052 $— $1,057,052 $— Liabilities: Derivative liabilities $91,146 $— $91,146 $— Total liabilities at fair value on a recurring basis $91,146 $— $91,146 $— (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2019 Assets: Available for sale debt securities: Obligations of U.S. government-sponsored enterprises $157,648 $— $157,648 $— Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 719,080 — 719,080 — Individual name issuer trust preferred debt securities 12,579 — 12,579 — Corporate bonds 10,183 — 10,183 — Mortgage loans held for sale 27,833 — 27,833 — Derivative assets 28,864 — 28,864 — Total assets at fair value on a recurring basis $956,187 $— $956,187 $— Liabilities: Derivative liabilities $29,381 $— $29,381 $— Total liabilities at fair value on a recurring basis $29,381 $— $29,381 $— |
Items Recorded at Fair Value on a Nonrecurring Basis | The following table presents the carrying value of assets held at March 31, 2020 , which were written down to fair value during the three months ended March 31, 2020 : (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Collateral dependent individually analyzed CRE loan $444 $— $— $444 Total assets at fair value on a nonrecurring basis $444 $— $— $444 The ACL on all collateral dependent individually analyzed loans amounted to $529 thousand at March 31, 2020 . The following table presents the carrying value of assets held at December 31, 2019 , which were written down to fair value during the year ended December 31, 2019 : (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Collateral dependent impaired loans $1,448 $— $— $1,448 Property acquired through foreclosure or repossession 1,109 — — 1,109 Total assets at fair value on a nonrecurring basis $2,557 $— $— $2,557 The allowance for loan losses on all collateral dependent impaired loans amounted to $871 thousand at December 31, 2019 . |
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, 2020 Collateral dependent individually analyzed loans $444 Appraisals of collateral Discount for costs to sell 10% - 100% (42%) Appraisal adjustments (1) 0% - 23% (15%) (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, 2019 Collateral dependent impaired loans $1,448 Appraisals of collateral Discount for costs to sell 0% - 20% (5%) Appraisal adjustments (1) 0% - 100% (67%) Property acquired through foreclosure or repossession $1,109 Appraisals of collateral Discount for costs to sell 12% Appraisal adjustments (1) 22% (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, 2020 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 credit losses on loans $4,050,731 $4,013,945 $— $— $4,013,945 Financial Liabilities: Time deposits $1,208,978 $1,220,528 $— $1,220,528 $— FHLB advances 1,198,534 1,211,630 — 1,211,630 — Junior subordinated debentures 22,681 17,714 — 17,714 — (Dollars in thousands) December 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 $3,865,985 $3,869,192 $— $— $3,869,192 Financial Liabilities: Time deposits $1,069,323 $1,082,830 $— $1,082,830 $— FHLB advances 1,141,464 1,145,242 — 1,145,242 — Junior subordinated debentures 22,681 19,628 — 19,628 — |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables summarize total revenues as presented in the Unaudited Consolidated Statements of Income and the related amounts that 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, 2020 2019 (Dollars in thousands) Revenue (1) ASC 606 Revenue (2) Revenue (1) ASC 606 Revenue (2) Net interest income $32,602 $— $34,584 $— Noninterest income: Asset-based wealth management revenues 8,355 8,355 8,921 8,921 Transaction-based wealth management revenues 334 334 331 331 Total wealth management revenues 8,689 8,689 9,252 9,252 Mortgage banking revenues 6,096 — 2,646 — Card interchange fees 947 947 997 997 Service charges on deposit accounts 860 860 875 875 Loan related derivative income 2,455 — 724 — Income from bank-owned life insurance 564 — 649 — Other income 316 247 224 224 Total noninterest income 19,927 10,743 15,367 11,348 Total revenues $52,529 $10,743 $49,951 $11,348 (1) As reported in the Consolidated Statements of Income. (2) Revenue from contracts with customers in scope of ASC 606. The Corporation recognizes revenue that is transactional in nature and such revenue is earned at a point in time. Revenue that is recognized at a point in time includes card interchange fees (fee income related to debit card transactions), ATM fees, wire transfer fees, overdraft charge fees, and stop-payment and returned check fees. Such revenue is derived from transactional information and is recognized as revenue immediately as the transactions occur or upon providing the service to complete the customer’s transaction. The Corporation recognizes revenue over a period of time, generally monthly, as services are performed and performance obligations are satisfied. Such revenue includes wealth management revenues and service charges on deposit accounts. Wealth management revenues are categorized as either asset-based revenues or transaction-based revenues. Asset-based revenues include trust and investment management fees that are earned based upon a percentage of asset values under administration. Transaction-based revenues include financial planning fees, tax preparation fees, commissions and other service fees. Fee revenue from service charges on deposit accounts represent the service charges assessed to customers who hold deposit accounts at the Bank. The following table presents revenue from contracts with customers based on the timing of revenue recognition: (Dollars in thousands) Three months ended March 31, 2020 2019 Revenue recognized at a point in time: Card interchange fees $947 $997 Service charges on deposit accounts 667 662 Other income 200 179 Revenue recognized over time: Wealth management revenues 8,689 9,252 Service charges on deposit accounts 193 213 Other income 47 45 Total revenues from contracts in scope of Topic 606 $10,743 $11,348 |
Defined Benefit Pension Plans (
Defined Benefit Pension Plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 Non-Qualified Retirement Plans Three months ended March 31, 2020 2019 2020 2019 Net Periodic Benefit Cost: Service cost (1) $541 $509 $43 $31 Interest cost (2) 626 742 116 141 Expected return on plan assets (2) (1,135 ) (1,124 ) — — Amortization of prior service credit (2) — (4 ) — — Recognized net actuarial loss (2) 396 198 140 102 Net periodic benefit cost $428 $321 $299 $274 (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, 2020 2019 2020 2019 Measurement date Dec 31, 2019 Dec 31, 2018 Dec 31, 2019 Dec 31, 2018 Equivalent single discount rate for benefit obligations 3.42% 4.38% 3.30% 4.28% Equivalent single discount rate for service cost 3.54 4.44 3.62 4.48 Equivalent single discount rate for interest cost 3.07 4.12 2.93 3.98 Expected long-term return on plan assets 5.75 5.75 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, 2020 | |
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, 2020 2019 2020 2019 2020 2019 2020 2019 Net interest income (expense) $29,009 $27,302 ($67 ) ($127 ) $3,660 $7,409 $32,602 $34,584 Provision for credit losses 7,036 650 — — — — 7,036 650 Net interest income (expense) after provision for credit losses 21,973 26,652 (67 ) (127 ) 3,660 7,409 25,566 33,934 Noninterest income 10,665 5,455 8,689 9,252 573 660 19,927 15,367 Noninterest expenses: Depreciation and amortization expense 619 672 354 365 40 40 1,013 1,077 Other noninterest expenses 18,842 15,758 6,846 6,478 3,752 3,651 29,440 25,887 Total noninterest expenses 19,461 16,430 7,200 6,843 3,792 3,691 30,453 26,964 Income before income taxes 13,177 15,677 1,422 2,282 441 4,378 15,040 22,337 Income tax expense 2,764 3,421 356 617 19 804 3,139 4,842 Net income $10,413 $12,256 $1,066 $1,665 $422 $3,574 $11,901 $17,495 Total assets at period end $4,367,469 $3,884,052 $74,283 $76,657 $1,179,227 $1,194,020 $5,620,979 $5,154,729 Expenditures for long-lived assets 526 1,300 53 292 49 63 628 1,655 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Activity in Other Comprehensive Income (Loss) | The following tables present the activity in other comprehensive income (loss): Three months ended March 31, 2020 2019 (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 $16,740 $3,934 $12,806 $14,406 $3,385 $11,021 Net (gains) losses on debt securities reclassified into earnings — — — — — — Net change in fair value of available for sale debt securities 16,740 3,934 12,806 14,406 3,385 11,021 Cash flow hedges: Change in fair value of cash flow hedges (1,402 ) (330 ) (1,072 ) (546 ) (128 ) (418 ) Net cash flow hedge gains (losses) reclassified into earnings (1) 29 7 22 (31 ) (7 ) (24 ) Net change in fair value of cash flow hedges (1,373 ) (323 ) (1,050 ) (577 ) (135 ) (442 ) Defined benefit plan obligations: Amortization of net actuarial losses (2) 536 126 410 300 70 230 Amortization of net prior service credits (2) — — — (4 ) (1 ) (3 ) Net change in defined benefit plan obligations 536 126 410 296 69 227 Total other comprehensive income $15,903 $3,737 $12,166 $14,125 $3,319 $10,806 (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 Gains on Available For Sale Debt Securities Net Unrealized (Losses) Gains on Cash Flow Hedges Defined Benefit Pension Plan Adjustment Total For the three months ended March 31, 2020 Balance at January 1, 2020 $3,226 ($793 ) ($13,670 ) ($11,237 ) Other comprehensive income (loss) before reclassifications 12,806 (1,072 ) — 11,734 Amounts reclassified from accumulated other comprehensive income — 22 410 432 Net other comprehensive income (loss) 12,806 (1,050 ) 410 12,166 Balance at March 31, 2020 $16,032 ($1,843 ) ($13,260 ) $929 (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 For the three months ended March 31, 2019 Balance at January 1, 2019 ($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 ) |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Calculation of Earnings Per Share | The following table presents the calculation of earnings per common share: Three months ended March 31, 2020 2019 Earnings per common share - basic: Net income $11,901 $17,495 Less dividends and undistributed earnings allocated to participating securities (32 ) (34 ) Net income available to common shareholders $11,869 $17,461 Weighted average common shares 17,345 17,304 Earnings per common share - basic $0.68 $1.01 Earnings per common share - diluted: Net income $11,901 $17,495 Less dividends and undistributed earnings allocated to participating securities (32 ) (34 ) Net income available to common shareholders $11,869 $17,461 Weighted average common shares 17,345 17,304 Dilutive effect of common stock equivalents 96 97 Weighted average diluted common shares 17,441 17,401 Earnings per common share - diluted $0.68 $1.00 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of operating lease terms | The following table presents information regarding Corporation’s operating leases: Mar 31, 2020 Dec 31, 2019 Weighted average discount rate 3.68 % 3.67 % Operating leases not yet commenced 1 1 Range of lease expiration dates 1 month - 21 years 4 months - 21 years Range of lease renewal options 1 year - 5 years 1 year - 5 years Weighted average remaining lease term 13.9 years 14.0 years |
Schedule of remaining operating lease payments, inclusive of renewal options | The following table presents the undiscounted annual lease payments under the terms of the Corporation’s operating leases at March 31, 2020 , including a reconciliation to the present value of operating lease liabilities recognized in the Corporation’s Unaudited Consolidated Balance Sheets: (Dollars in thousands) April 1, 2020 to December 31, 2020 $2,560 2021 3,290 2022 3,165 2023 3,097 2024 2,904 2025 and thereafter 21,818 Total operating lease payments (1) 36,834 Less interest 8,650 Present value of operating lease liabilities (2) $28,184 (1) Includes $2.6 million related to options to extend lease terms that are reasonably certain of being exercised. (2) Includes short-term operating lease liabilities of $2.4 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, 2020 2020 2019 Lease Expense: Operating lease expense $951 $928 Variable lease expense 13 11 Total lease expense (1) $964 $939 Cash Paid: Cash paid reducing operating lease liabilities $934 $920 (1) Included in net occupancy expenses in the Unaudited Consolidated Income Statement. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 $437,120 $471,338 Home equity lines 300,122 295,687 Other loans 85,174 88,613 Standby letters of credit 9,431 13,710 Financial instruments whose notional amounts exceed the amounts of credit risk: Mortgage loan commitments: Interest rate lock commitments 161,720 51,439 Forward sale commitments 220,284 94,829 Loan related derivative contracts: Interest rate swaps with customers 960,481 813,458 Mirror swaps with counterparties 960,481 813,458 Risk participation-in agreements 88,623 72,866 Interest rate risk management contracts: Interest rate swaps 60,000 60,000 |
Allowance for Credit Losses on Unfunded Commitments Rollforward | The activity in the ACL on unfunded commitments for the three months ended March 31, 2020 is presented below: (Dollars in thousands) Commercial Consumer CRE C&I Total Commercial Residential Real Estate Home Equity Other Total Consumer Total Beginning Balance $136 $144 $280 $6 $— $7 $7 $293 Adoption of Topic 326 (1) 817 626 1,443 34 — 6 6 1,483 Provision 179 77 256 2 — 5 5 263 Ending Balance $1,132 $847 $1,979 $42 $— $18 $18 $2,039 (1) Adoption of the CECL accounting standard effective January 1, 2020. |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Goodwill | $ 63,909 | $ 63,909 |
Wealth Management Services [Member] | ||
Goodwill | 41,300 | |
Commercial Banking [Member] | ||
Goodwill | $ 22,600 |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Adoption of Topic 326 | $ 6,501 | [1] | $ (6,108) | $ 722 | |
Adoption of Topic 326 | [2] | 1,483 | |||
Adoption of Topic 326, deferred taxes | 1,900 | ||||
Unfunded Loan Commitment [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Adoption of Topic 326 | [2] | $ 1,500 | |||
Retained Earnings [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Adoption of Topic 326 | $ (6,108) | $ 722 | |||
[1] | Adoption of the CECL accounting standard effective January 1, 2020. | ||||
[2] | Adoption of the CECL accounting standard effective January 1, 2020. |
Cash and Due from Banks (Narrat
Cash and Due from Banks (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents [Abstract] | ||
Average reserve deposited with the Board of Governors of the Federal Reserve Bank | $ 27.9 | |
Interest-bearing deposits in other banks | $ 136.8 | $ 83.4 |
Securities (Narrative) (Details
Securities (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security | |
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Accrued interest receivable | $ 2,800 | $ 2,900 |
Fair value of available for sale and held to maturity securities pledged as collateral | 400,000 | $ 431,900 |
Amortized cost of callable debt securities | 155,400 | |
Fair value of callable debt securities | $ 151,700 | |
Number of securities in a continuous unrealized loss position total | security | 13 | 41 |
Unrealized losses of securities in a continuous unrealized loss position total | $ (5,140) | $ (4,900) |
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 | $ 2,000 | |
Unrealized losses of trust preferred securities of individual name issuers that are below investment grade | 421 | |
Unrealized losses of securities in a continuous unrealized loss position total | $ (2,232) | $ (745) |
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 | 3 | 3 |
Unrealized losses of securities in a continuous unrealized loss position total | $ (2,693) | $ (958) |
Minimum [Member] | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Maturity period of callable debt securities | 1 month | |
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 | 17 years | |
Call features of callable debt securities | 2 years |
Securities (Summary of Investme
Securities (Summary of Investments) (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Available for sale debt securities amortized cost basis | $ 896,435,000 | $ 895,273,000 |
Available for sale debt securities unrealized gains | 26,097,000 | 9,117,000 |
Available for sale debt securities unrealized losses | (5,140,000) | (4,900,000) |
Available for sale debt securities allowance for credit losses | 0 | |
Available for sale debt securities, at fair value | 917,392,000 | 899,490,000 |
Total securities amortized cost | 896,435,000 | 895,273,000 |
Total securities unrealized gains | 26,097,000 | 9,117,000 |
Total securities unrealized losses | (5,140,000) | (4,900,000) |
Total securities fair value | 917,392,000 | 899,490,000 |
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 | 132,262,000 | 157,255,000 |
Available for sale debt securities unrealized gains | 1,408,000 | 626,000 |
Available for sale debt securities unrealized losses | (169,000) | (233,000) |
Available for sale debt securities allowance for credit losses | 0 | |
Available for sale debt securities, at fair value | 133,501,000 | 157,648,000 |
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 | 739,701,000 | 713,553,000 |
Available for sale debt securities unrealized gains | 24,689,000 | 8,491,000 |
Available for sale debt securities unrealized losses | (46,000) | (2,964,000) |
Available for sale debt securities allowance for credit losses | 0 | |
Available for sale debt securities, at fair value | 764,344,000 | 719,080,000 |
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 | 13,328,000 | 13,324,000 |
Available for sale debt securities unrealized gains | 0 | 0 |
Available for sale debt securities unrealized losses | (2,232,000) | (745,000) |
Available for sale debt securities allowance for credit losses | 0 | |
Available for sale debt securities, at fair value | 11,096,000 | 12,579,000 |
Corporate bonds [Member] | ||
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | ||
Available for sale debt securities amortized cost basis | 11,144,000 | 11,141,000 |
Available for sale debt securities unrealized gains | 0 | 0 |
Available for sale debt securities unrealized losses | (2,693,000) | (958,000) |
Available for sale debt securities allowance for credit losses | 0 | |
Available for sale debt securities, at fair value | $ 8,451,000 | $ 10,183,000 |
Securities (Securities by Contr
Securities (Securities by Contractual Maturity) (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Schedule of Available for Sale and Held to Maturty Securities [Line Items] | |
Available for sale debt securities maturities within 1 year amortized cost | $ 110,903 |
Available for sale debt securities maturities 1-5 years amortized cost | 339,369 |
Available for sale debt securities maturities 5-10 years amortized cost | 269,847 |
Available for sale debt securities maturities after 10 years amortized cost | 176,316 |
Available for sale debt securities maturities total amortized cost | 896,435 |
Available for sale debt securities maturities within 1 year fair value | 114,238 |
Available for sale debt securities maturities 1-5 years fair value | 349,303 |
Available for sale debt securities maturities 5-10 years fair value | 273,824 |
Available for sale debt securities maturities after 10 years fair value | 180,027 |
Available for sale debt securities fair value | $ 917,392 |
Securities (Securities in a Con
Securities (Securities in a Continuous Unrealized Loss Position) (Details) $ in Thousands | Mar. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security |
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities in a continuous unrealized loss position for less than 12 months | security | 5 | 7 |
Fair value of securities in a continuous unrealized loss position for less than 12 months | $ 37,009 | $ 61,514 |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | $ (215) | $ (192) |
Number of securities in a continuous unrealized loss position for 12 months or longer | security | 8 | 34 |
Fair value of securities in a continuous unrealized loss position for 12 months or longer | $ 19,547 | $ 289,468 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | $ (4,925) | $ (4,708) |
Number of securities in a continuous unrealized loss position total | security | 13 | 41 |
Fair value of securities in a continuous unrealized loss position total | $ 56,556 | $ 350,982 |
Unrealized losses of securities in a continuous unrealized loss position total | $ (5,140) | $ (4,900) |
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 | 1 | 3 |
Fair value of securities in a continuous unrealized loss position for less than 12 months | $ 24,831 | $ 20,364 |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | $ (169) | $ (136) |
Number of securities in a continuous unrealized loss position for 12 months or longer | security | 0 | 3 |
Fair value of securities in a continuous unrealized loss position for 12 months or longer | $ 0 | $ 49,902 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | $ 0 | $ (97) |
Number of securities in a continuous unrealized loss position total | security | 1 | 6 |
Fair value of securities in a continuous unrealized loss position total | $ 24,831 | $ 70,266 |
Unrealized losses of securities in a continuous unrealized loss position total | $ (169) | $ (233) |
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 | 4 | 4 |
Fair value of securities in a continuous unrealized loss position for less than 12 months | $ 12,178 | $ 41,150 |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | $ (46) | $ (56) |
Number of securities in a continuous unrealized loss position for 12 months or longer | security | 0 | 23 |
Fair value of securities in a continuous unrealized loss position for 12 months or longer | $ 0 | $ 216,804 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | $ 0 | $ (2,908) |
Number of securities in a continuous unrealized loss position total | security | 4 | 27 |
Fair value of securities in a continuous unrealized loss position total | $ 12,178 | $ 257,954 |
Unrealized losses of securities in a continuous unrealized loss position total | $ (46) | $ (2,964) |
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 | $ 11,096 | $ 12,579 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | $ (2,232) | $ (745) |
Number of securities in a continuous unrealized loss position total | security | 5 | 5 |
Fair value of securities in a continuous unrealized loss position total | $ 11,096 | $ 12,579 |
Unrealized losses of securities in a continuous unrealized loss position total | $ (2,232) | $ (745) |
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 | 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 | 3 | 3 |
Fair value of securities in a continuous unrealized loss position for 12 months or longer | $ 8,451 | $ 10,183 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | $ (2,693) | $ (958) |
Number of securities in a continuous unrealized loss position total | security | 3 | 3 |
Fair value of securities in a continuous unrealized loss position total | $ 8,451 | $ 10,183 |
Unrealized losses of securities in a continuous unrealized loss position total | $ (2,693) | $ (958) |
Loans (Narrative) (Details)
Loans (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Net unamortized loan origination costs | $ 5,200 | $ 5,300 |
Net unamortized premiums on purchased loans | 724 | 995 |
Loans pledged as collateral | 2,200,000 | 2,100,000 |
Past due loans included in nonaccrual loans | 11,400 | 11,500 |
Nonaccrual loans with no ACL | 490 | |
Residential loans in process of foreclosure | 3,800 | 5,800 |
Nonaccrual loans current on payment | $ 6,500 | $ 5,900 |
Loans (Summary of Loans) (Detai
Loans (Summary of Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | [1] | $ 4,090,396 | $ 3,892,999 |
Commercial Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | [2] | 1,618,020 | 1,547,572 |
Commercial & Industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | [3] | 655,157 | 585,289 |
Total Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 2,273,177 | 2,132,861 | |
Residential Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | [4] | 1,510,472 | 1,449,090 |
Home Equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 287,134 | 290,874 | |
Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | [5] | 19,613 | 20,174 |
Total Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 306,747 | $ 311,048 | |
[1] | Includes net unamortized loan origination costs of $5.2 million and $5.3 million , respectively, at March 31, 2020 and December 31, 2019 and net unamortized premiums on purchased loans of $724 thousand and $995 thousand , respectively, at March 31, 2020 and December 31, 2019 . | ||
[2] | Commercial real estate (“CRE”) consists of commercial mortgages primarily secured by income-producing property, as well as construction and development loans. Construction and development loans are made to businesses for land development or the on-site construction of industrial, commercial, or residential buildings. | ||
[3] | Commercial and industrial (“C&I”) consists of loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate. | ||
[4] | Residential real estate consists of mortgage and homeowner construction loans secured by one- to four-family residential properties. | ||
[5] | Other consists of loans to individuals secured by general aviation aircraft and other personal installment loans. |
Loans (Past Due Loans) (Details
Loans (Past Due Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Past Due [Line Items] | |||
Total past due | $ 16,475 | $ 15,689 | |
Current | 4,073,921 | 3,877,310 | |
Total loans | [1] | 4,090,396 | 3,892,999 |
30-59 | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 7,877 | 6,418 | |
60-89 | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 1,301 | 2,884 | |
Over 90 | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 7,297 | 6,387 | |
Commercial Real Estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 1,275 | 1,433 | |
Current | 1,616,745 | 1,546,139 | |
Total loans | [2] | 1,618,020 | 1,547,572 |
Commercial Real Estate | 30-59 | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 825 | 830 | |
Commercial Real Estate | 60-89 | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Commercial Real Estate | Over 90 | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 450 | 603 | |
Commercial & Industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 310 | 1 | |
Current | 654,847 | 585,288 | |
Total loans | [3] | 655,157 | 585,289 |
Commercial & Industrial | 30-59 | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 20 | 1 | |
Commercial & Industrial | 60-89 | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Commercial & Industrial | Over 90 | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 290 | 0 | |
Total Commercial | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 1,585 | 1,434 | |
Current | 2,271,592 | 2,131,427 | |
Total loans | 2,273,177 | 2,132,861 | |
Total Commercial | 30-59 | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 845 | 831 | |
Total Commercial | 60-89 | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Total Commercial | Over 90 | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 740 | 603 | |
Residential Real Estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 12,293 | 11,429 | |
Current | 1,498,179 | 1,437,661 | |
Total loans | [4] | 1,510,472 | 1,449,090 |
Residential Real Estate | 30-59 | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 5,410 | 4,574 | |
Residential Real Estate | 60-89 | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 1,197 | 2,155 | |
Residential Real Estate | Over 90 | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 5,686 | 4,700 | |
Home Equity | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 2,482 | 2,696 | |
Current | 284,652 | 288,178 | |
Total loans | 287,134 | 290,874 | |
Home Equity | 30-59 | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 1,596 | 971 | |
Home Equity | 60-89 | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 103 | 729 | |
Home Equity | Over 90 | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 783 | 996 | |
Other | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 115 | 130 | |
Current | 19,498 | 20,044 | |
Total loans | [5] | 19,613 | 20,174 |
Other | 30-59 | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 26 | 42 | |
Other | 60-89 | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 1 | 0 | |
Other | Over 90 | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 88 | 88 | |
Total Consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 2,597 | 2,826 | |
Current | 304,150 | 308,222 | |
Total loans | 306,747 | 311,048 | |
Total Consumer | 30-59 | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 1,622 | 1,013 | |
Total Consumer | 60-89 | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | 104 | 729 | |
Total Consumer | Over 90 | |||
Financing Receivable, Past Due [Line Items] | |||
Total past due | $ 871 | $ 1,084 | |
[1] | Includes net unamortized loan origination costs of $5.2 million and $5.3 million , respectively, at March 31, 2020 and December 31, 2019 and net unamortized premiums on purchased loans of $724 thousand and $995 thousand , respectively, at March 31, 2020 and December 31, 2019 . | ||
[2] | Commercial real estate (“CRE”) consists of commercial mortgages primarily secured by income-producing property, as well as construction and development loans. Construction and development loans are made to businesses for land development or the on-site construction of industrial, commercial, or residential buildings. | ||
[3] | Commercial and industrial (“C&I”) consists of loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate. | ||
[4] | Residential real estate consists of mortgage and homeowner construction loans secured by one- to four-family residential properties. | ||
[5] | Other consists of loans to individuals secured by general aviation aircraft and other personal installment loans. |
Loans (Nonaccrual Loans) (Detai
Loans (Nonaccrual Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 17,918 | $ 17,408 |
Accruing loans 90 days or more past due | 0 | 0 |
Commercial Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | 450 | 603 |
Commercial & Industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | 290 | 657 |
Total Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | 740 | 1,260 |
Residential Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | 15,423 | 14,297 |
Home Equity | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | 1,667 | 1,763 |
Other | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | 88 | 88 |
Total Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 1,755 | $ 1,851 |
Loans (Interest Income on Nonac
Loans (Interest Income on Nonaccrual Loans) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Interest income on nonaccrual loans | $ 191 |
Commercial Real Estate | |
Interest income on nonaccrual loans | 0 |
Commercial & Industrial | |
Interest income on nonaccrual loans | 0 |
Total Commercial | |
Interest income on nonaccrual loans | 0 |
Residential Real Estate | |
Interest income on nonaccrual loans | 168 |
Home Equity | |
Interest income on nonaccrual loans | 23 |
Other | |
Interest income on nonaccrual loans | 0 |
Total Consumer | |
Interest income on nonaccrual loans | $ 23 |
Loans (Narrative - Troubled Deb
Loans (Narrative - Troubled Debt Restructurings) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Recorded investment in Troubled Debt Restructuring, Recorded Investment | $ 864 | $ 869 |
Specific Reserves on Troubled Debt Restructurings | $ 95 | $ 97 |
Loans (Troubled Debt Restructur
Loans (Troubled Debt Restructurings Type of Modification) (Details) - loan | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans modified as a troubled debt restructuring | 0 | 0 |
Loans (Troubled Debt Restruct_2
Loans (Troubled Debt Restructurings Subsequent Default) (Details) - loan | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans modified as a troubled debt restructuring | 0 | 0 |
Payment Default [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans modified as a troubled debt restructuring | 0 | 0 |
Loans (Collateral Dependent Ind
Loans (Collateral Dependent Individually Analyzed Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | [1] | $ 4,090,396 | $ 3,892,999 |
Related allowance | 968 | ||
Collateral Dependent Individually Analyzed | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 1,391 | ||
Related allowance | 529 | ||
Commercial Real Estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | [2] | 1,618,020 | 1,547,572 |
Related allowance | 0 | ||
Commercial Real Estate | Collateral Dependent Individually Analyzed | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | [3] | 450 | |
Related allowance | [3] | 6 | |
Commercial & Industrial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | [4] | 655,157 | 585,289 |
Related allowance | 580 | ||
Commercial & Industrial | Collateral Dependent Individually Analyzed | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | [5] | 290 | |
Related allowance | [5] | 290 | |
Total Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 2,273,177 | 2,132,861 | |
Related allowance | 580 | ||
Total Commercial | Collateral Dependent Individually Analyzed | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 740 | ||
Related allowance | 296 | ||
Residential Real Estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | [6] | 1,510,472 | 1,449,090 |
Related allowance | 95 | ||
Residential Real Estate | Collateral Dependent Individually Analyzed | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | [7] | 418 | |
Related allowance | [7] | 0 | |
Home Equity | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 287,134 | 290,874 | |
Related allowance | 291 | ||
Home Equity | Collateral Dependent Individually Analyzed | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | [7] | 233 | |
Related allowance | [7] | 233 | |
Other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | [8] | 19,613 | 20,174 |
Related allowance | 2 | ||
Other | Collateral Dependent Individually Analyzed | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 0 | ||
Related allowance | 0 | ||
Total Consumer | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 306,747 | 311,048 | |
Related allowance | $ 293 | ||
Total Consumer | Collateral Dependent Individually Analyzed | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 233 | ||
Related allowance | $ 233 | ||
[1] | Includes net unamortized loan origination costs of $5.2 million and $5.3 million , respectively, at March 31, 2020 and December 31, 2019 and net unamortized premiums on purchased loans of $724 thousand and $995 thousand , respectively, at March 31, 2020 and December 31, 2019 . | ||
[2] | Commercial real estate (“CRE”) 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] | Secured by income-producing property. | ||
[4] | Commercial and industrial (“C&I”) consists of loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate. | ||
[5] | Secured by business assets. | ||
[6] | Residential real estate consists of mortgage and homeowner construction loans secured by one- to four-family residential properties. | ||
[7] | Secured by one- to four-family residential properties. | ||
[8] | Other consists of loans to individuals secured by general aviation aircraft and other personal installment loans. |
Loans (Impaired Loans) (Details
Loans (Impaired Loans) (Details) $ in Thousands | Dec. 31, 2019USD ($) | |
Financing Receivable, Impaired [Line Items] | ||
Recorded investment impaired loans, no related allowance | $ 15,527 | [1] |
Recorded investment impaired loans with related allowance | 2,257 | [1] |
Total recorded investment impaired loans | 17,784 | [1] |
Unpaid principal impaired loans with no related allowance | 16,363 | |
Unpaid principal impaired loans with related allowance | 2,606 | |
Total unpaid principal of impaired loans | 18,969 | |
No related allowance impaired loans | 0 | |
Related allowance impaired loans | 968 | |
Commercial Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment impaired loans, no related allowance | 0 | [1] |
Recorded investment impaired loans with related allowance | 603 | [1] |
Unpaid principal impaired loans with no related allowance | 0 | |
Unpaid principal impaired loans with related allowance | 926 | |
No related allowance impaired loans | 0 | |
Related allowance impaired loans | 0 | |
Commercial & Industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment impaired loans, no related allowance | 0 | [1] |
Recorded investment impaired loans with related allowance | 657 | [1] |
Unpaid principal impaired loans with no related allowance | 0 | |
Unpaid principal impaired loans with related allowance | 657 | |
No related allowance impaired loans | 0 | |
Related allowance impaired loans | 580 | |
Total Commercial | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment impaired loans, no related allowance | 0 | [1] |
Recorded investment impaired loans with related allowance | 1,260 | [1] |
Total recorded investment impaired loans | 1,260 | [1] |
Unpaid principal impaired loans with no related allowance | 0 | |
Unpaid principal impaired loans with related allowance | 1,583 | |
Total unpaid principal of impaired loans | 1,583 | |
No related allowance impaired loans | 0 | |
Related allowance impaired loans | 580 | |
Residential Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment impaired loans, no related allowance | 13,968 | [1] |
Recorded investment impaired loans with related allowance | 687 | [1] |
Total recorded investment impaired loans | 14,655 | [1] |
Unpaid principal impaired loans with no related allowance | 14,803 | |
Unpaid principal impaired loans with related allowance | 714 | |
Total unpaid principal of impaired loans | 15,517 | |
No related allowance impaired loans | 0 | |
Related allowance impaired loans | 95 | |
Home Equity | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment impaired loans, no related allowance | 1,471 | [1] |
Recorded investment impaired loans with related allowance | 292 | [1] |
Unpaid principal impaired loans with no related allowance | 1,472 | |
Unpaid principal impaired loans with related allowance | 291 | |
No related allowance impaired loans | 0 | |
Related allowance impaired loans | 291 | |
Other | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment impaired loans, no related allowance | 88 | [1] |
Recorded investment impaired loans with related allowance | 18 | [1] |
Unpaid principal impaired loans with no related allowance | 88 | |
Unpaid principal impaired loans with related allowance | 18 | |
No related allowance impaired loans | 0 | |
Related allowance impaired loans | 2 | |
Total Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment impaired loans, no related allowance | 1,559 | [1] |
Recorded investment impaired loans with related allowance | 310 | [1] |
Total recorded investment impaired loans | 1,869 | [1] |
Unpaid principal impaired loans with no related allowance | 1,560 | |
Unpaid principal impaired loans with related allowance | 309 | |
Total unpaid principal of impaired loans | 1,869 | |
No related allowance impaired loans | 0 | |
Related allowance impaired loans | $ 293 | |
[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) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Financing Receivable, Impaired [Line Items] | |
Average recorded investment | $ 17,317 |
Interest income | 184 |
Commercial Real Estate | |
Financing Receivable, Impaired [Line Items] | |
Average recorded investment | 976 |
Interest income | 1 |
Commercial & Industrial | |
Financing Receivable, Impaired [Line Items] | |
Average recorded investment | 4,689 |
Interest income | 54 |
Total Commercial | |
Financing Receivable, Impaired [Line Items] | |
Average recorded investment | 5,665 |
Interest income | 55 |
Residential Real Estate | |
Financing Receivable, Impaired [Line Items] | |
Average recorded investment | 10,151 |
Interest income | 115 |
Home Equity | |
Financing Receivable, Impaired [Line Items] | |
Average recorded investment | 1,480 |
Interest income | 14 |
Other | |
Financing Receivable, Impaired [Line Items] | |
Average recorded investment | 21 |
Interest income | 0 |
Total Consumer | |
Financing Receivable, Impaired [Line Items] | |
Average recorded investment | 1,501 |
Interest income | $ 14 |
Loans (Credit Quality Indicator
Loans (Credit Quality Indicators Vintage) (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Term loans amortized cost, current year | $ 203,818 |
Term loans amortized cost, prior year | 668,433 |
Term loans amortized cost, two years ago | 649,933 |
Term loans amortized cost, three years ago | 592,527 |
Term loans amortized cost, four years ago | 384,859 |
Term loans amortized cost, five years ago or more | 1,184,128 |
Revolving loans amortized cost | 387,636 |
Revolving loans converted to term loans | 19,062 |
Total | 4,090,396 |
Commercial Real Estate | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Term loans amortized cost, current year | 55,517 |
Term loans amortized cost, prior year | 235,636 |
Term loans amortized cost, two years ago | 340,015 |
Term loans amortized cost, three years ago | 287,171 |
Term loans amortized cost, four years ago | 157,491 |
Term loans amortized cost, five years ago or more | 532,228 |
Revolving loans amortized cost | 7,445 |
Revolving loans converted to term loans | 2,517 |
Total | 1,618,020 |
Commercial Real Estate | Pass [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Term loans amortized cost, current year | 55,517 |
Term loans amortized cost, prior year | 235,636 |
Term loans amortized cost, two years ago | 340,015 |
Term loans amortized cost, three years ago | 277,871 |
Term loans amortized cost, four years ago | 157,491 |
Term loans amortized cost, five years ago or more | 530,953 |
Revolving loans amortized cost | 7,445 |
Revolving loans converted to term loans | 2,517 |
Total | 1,607,445 |
Commercial Real Estate | Special Mention [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Term loans amortized cost, current year | 0 |
Term loans amortized cost, prior year | 0 |
Term loans amortized cost, two years ago | 0 |
Term loans amortized cost, three years ago | 9,300 |
Term loans amortized cost, four years ago | 0 |
Term loans amortized cost, five years ago or more | 825 |
Revolving loans amortized cost | 0 |
Revolving loans converted to term loans | 0 |
Total | 10,125 |
Commercial Real Estate | Classified [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Term loans amortized cost, current year | 0 |
Term loans amortized cost, prior year | 0 |
Term loans amortized cost, two years ago | 0 |
Term loans amortized cost, three years ago | 0 |
Term loans amortized cost, four years ago | 0 |
Term loans amortized cost, five years ago or more | 450 |
Revolving loans amortized cost | 0 |
Revolving loans converted to term loans | 0 |
Total | 450 |
Commercial & Industrial | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Term loans amortized cost, current year | 43,850 |
Term loans amortized cost, prior year | 80,561 |
Term loans amortized cost, two years ago | 59,753 |
Term loans amortized cost, three years ago | 72,240 |
Term loans amortized cost, four years ago | 47,241 |
Term loans amortized cost, five years ago or more | 214,817 |
Revolving loans amortized cost | 135,030 |
Revolving loans converted to term loans | 1,665 |
Total | 655,157 |
Commercial & Industrial | Pass [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Term loans amortized cost, current year | 43,850 |
Term loans amortized cost, prior year | 80,561 |
Term loans amortized cost, two years ago | 59,753 |
Term loans amortized cost, three years ago | 70,374 |
Term loans amortized cost, four years ago | 43,616 |
Term loans amortized cost, five years ago or more | 189,242 |
Revolving loans amortized cost | 130,463 |
Revolving loans converted to term loans | 1,599 |
Total | 619,458 |
Commercial & Industrial | Special Mention [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Term loans amortized cost, current year | 0 |
Term loans amortized cost, prior year | 0 |
Term loans amortized cost, two years ago | 0 |
Term loans amortized cost, three years ago | 1,866 |
Term loans amortized cost, four years ago | 3,625 |
Term loans amortized cost, five years ago or more | 17,229 |
Revolving loans amortized cost | 2,128 |
Revolving loans converted to term loans | 66 |
Total | 24,914 |
Commercial & Industrial | Classified [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Term loans amortized cost, current year | 0 |
Term loans amortized cost, prior year | 0 |
Term loans amortized cost, two years ago | 0 |
Term loans amortized cost, three years ago | 0 |
Term loans amortized cost, four years ago | 0 |
Term loans amortized cost, five years ago or more | 8,346 |
Revolving loans amortized cost | 2,439 |
Revolving loans converted to term loans | 0 |
Total | 10,785 |
Residential Real Estate | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Term loans amortized cost, current year | 100,890 |
Term loans amortized cost, prior year | 339,953 |
Term loans amortized cost, two years ago | 242,630 |
Term loans amortized cost, three years ago | 228,217 |
Term loans amortized cost, four years ago | 177,616 |
Term loans amortized cost, five years ago or more | 421,166 |
Revolving loans amortized cost | 0 |
Revolving loans converted to term loans | 0 |
Total | 1,510,472 |
Residential Real Estate | Current [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Term loans amortized cost, current year | 100,890 |
Term loans amortized cost, prior year | 339,675 |
Term loans amortized cost, two years ago | 241,997 |
Term loans amortized cost, three years ago | 225,108 |
Term loans amortized cost, four years ago | 177,100 |
Term loans amortized cost, five years ago or more | 413,409 |
Revolving loans amortized cost | 0 |
Revolving loans converted to term loans | 0 |
Total | 1,498,179 |
Residential Real Estate | Past Due [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Term loans amortized cost, current year | 0 |
Term loans amortized cost, prior year | 278 |
Term loans amortized cost, two years ago | 633 |
Term loans amortized cost, three years ago | 3,109 |
Term loans amortized cost, four years ago | 516 |
Term loans amortized cost, five years ago or more | 7,757 |
Revolving loans amortized cost | 0 |
Revolving loans converted to term loans | 0 |
Total | 12,293 |
Home Equity | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Term loans amortized cost, current year | 2,947 |
Term loans amortized cost, prior year | 9,308 |
Term loans amortized cost, two years ago | 5,510 |
Term loans amortized cost, three years ago | 2,578 |
Term loans amortized cost, four years ago | 1,601 |
Term loans amortized cost, five years ago or more | 5,566 |
Revolving loans amortized cost | 244,747 |
Revolving loans converted to term loans | 14,877 |
Total | 287,134 |
Home Equity | Current [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Term loans amortized cost, current year | 2,947 |
Term loans amortized cost, prior year | 9,308 |
Term loans amortized cost, two years ago | 5,510 |
Term loans amortized cost, three years ago | 2,528 |
Term loans amortized cost, four years ago | 1,601 |
Term loans amortized cost, five years ago or more | 5,473 |
Revolving loans amortized cost | 243,986 |
Revolving loans converted to term loans | 13,299 |
Total | 284,652 |
Home Equity | Past Due [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Term loans amortized cost, current year | 0 |
Term loans amortized cost, prior year | 0 |
Term loans amortized cost, two years ago | 0 |
Term loans amortized cost, three years ago | 50 |
Term loans amortized cost, four years ago | 0 |
Term loans amortized cost, five years ago or more | 93 |
Revolving loans amortized cost | 761 |
Revolving loans converted to term loans | 1,578 |
Total | 2,482 |
Other | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Term loans amortized cost, current year | 614 |
Term loans amortized cost, prior year | 2,975 |
Term loans amortized cost, two years ago | 2,025 |
Term loans amortized cost, three years ago | 2,321 |
Term loans amortized cost, four years ago | 910 |
Term loans amortized cost, five years ago or more | 10,351 |
Revolving loans amortized cost | 414 |
Revolving loans converted to term loans | 3 |
Total | 19,613 |
Other | Current [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Term loans amortized cost, current year | 605 |
Term loans amortized cost, prior year | 2,975 |
Term loans amortized cost, two years ago | 2,025 |
Term loans amortized cost, three years ago | 2,321 |
Term loans amortized cost, four years ago | 822 |
Term loans amortized cost, five years ago or more | 10,334 |
Revolving loans amortized cost | 414 |
Revolving loans converted to term loans | 2 |
Total | 19,498 |
Other | Past Due [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Term loans amortized cost, current year | 9 |
Term loans amortized cost, prior year | 0 |
Term loans amortized cost, two years ago | 0 |
Term loans amortized cost, three years ago | 0 |
Term loans amortized cost, four years ago | 88 |
Term loans amortized cost, five years ago or more | 17 |
Revolving loans amortized cost | 0 |
Revolving loans converted to term loans | 1 |
Total | $ 115 |
Loans (Credit Quality Indicat_2
Loans (Credit Quality Indicators - Commercial) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Commercial Real Estate | Pass [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loans Receivable | $ 1,546,139 |
Commercial Real Estate | Special Mention [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loans Receivable | 830 |
Commercial Real Estate | Classified [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loans Receivable | 603 |
Commercial & Industrial | Pass [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loans Receivable | 549,416 |
Commercial & Industrial | Special Mention [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loans Receivable | 24,961 |
Commercial & Industrial | Classified [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loans Receivable | 10,912 |
Total Commercial | Pass [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loans Receivable | 2,095,555 |
Total Commercial | Special Mention [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loans Receivable | 25,791 |
Total Commercial | Classified [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loans Receivable | $ 11,515 |
Loans (Credit Quality Indicat_3
Loans (Credit Quality Indicators - Residential, Consumer) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | $ 4,073,921 | $ 3,877,310 |
Total past due | 16,475 | 15,689 |
Residential Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 1,498,179 | 1,437,661 |
Total past due | 12,293 | 11,429 |
Home Equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 284,652 | 288,178 |
Total past due | 2,482 | 2,696 |
Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 19,498 | 20,044 |
Total past due | 115 | 130 |
Total Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 304,150 | 308,222 |
Total past due | $ 2,597 | $ 2,826 |
Allowance for Credit Losses o_4
Allowance for Credit Losses on Loans (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Credit Loss [Abstract] | ||
Accrued interest receivable on loans | $ 11.2 | $ 11 |
Allowance for Credit Losses o_5
Allowance for Credit Losses on Loans (Allowance for Loan Losses Rollforward Analysis) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2020 | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance, Beginning Balance | $ 27,014 | $ 27,072 | |||
Adoption of Topic 326 | (6,108) | 722 | $ 6,501 | [1] | |
Charge-offs | (635) | (103) | |||
Recoveries | 12 | 25 | |||
Provision | 6,773 | 650 | |||
Allowance, Ending Balance | 39,665 | 27,644 | |||
Commercial Real Estate | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance, Beginning Balance | 14,741 | 15,381 | |||
Adoption of Topic 326 | [1] | 3,405 | |||
Charge-offs | (153) | 0 | |||
Recoveries | 0 | 0 | |||
Provision | 1,743 | 1,810 | |||
Allowance, Ending Balance | 19,736 | 17,191 | |||
Commercial & Industrial | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance, Beginning Balance | 3,921 | 5,847 | |||
Adoption of Topic 326 | [1] | 3,029 | |||
Charge-offs | (294) | (14) | |||
Recoveries | 4 | 8 | |||
Provision | 3,671 | (1,343) | |||
Allowance, Ending Balance | 10,331 | 4,498 | |||
Total Commercial | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance, Beginning Balance | 18,662 | 21,228 | |||
Adoption of Topic 326 | [1] | 6,434 | |||
Charge-offs | (447) | (14) | |||
Recoveries | 4 | 8 | |||
Provision | 5,414 | 467 | |||
Allowance, Ending Balance | 30,067 | 21,689 | |||
Residential Real Estate | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance, Beginning Balance | 6,615 | 3,987 | |||
Adoption of Topic 326 | [1] | 221 | |||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Provision | 893 | 22 | |||
Allowance, Ending Balance | 7,729 | 4,009 | |||
Home Equity | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance, Beginning Balance | 1,390 | 1,603 | |||
Adoption of Topic 326 | [1] | (106) | |||
Charge-offs | (173) | (61) | |||
Recoveries | 1 | 13 | |||
Provision | 323 | 34 | |||
Allowance, Ending Balance | 1,435 | 1,589 | |||
Other | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance, Beginning Balance | 347 | 254 | |||
Adoption of Topic 326 | [1] | (48) | |||
Charge-offs | (15) | (28) | |||
Recoveries | 7 | 4 | |||
Provision | 143 | 127 | |||
Allowance, Ending Balance | 434 | 357 | |||
Total Consumer | |||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Allowance, Beginning Balance | 1,737 | 1,857 | |||
Adoption of Topic 326 | [1] | $ (154) | |||
Charge-offs | (188) | (89) | |||
Recoveries | 8 | 17 | |||
Provision | 466 | 161 | |||
Allowance, Ending Balance | $ 1,869 | $ 1,946 | |||
[1] | Adoption of the CECL accounting standard effective January 1, 2020. |
Allowance for Credit Losses o_6
Allowance for Credit Losses on Loans (Allowance for Loan Losses by Segment & Impairment Methodology) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans individually evaluated for impairment | $ 17,783 | ||
Loans related allowance individually evaluated for impairment | 968 | ||
Loans collectively evaluated for impairment | 3,875,216 | ||
Loans related allowance collectively evaluated for impairment | 26,046 | ||
Total loans | [1] | $ 4,090,396 | 3,892,999 |
Allowance | 27,014 | ||
Commercial Real Estate | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans individually evaluated for impairment | 603 | ||
Loans related allowance individually evaluated for impairment | 0 | ||
Loans collectively evaluated for impairment | 1,546,969 | ||
Loans related allowance collectively evaluated for impairment | 14,741 | ||
Total loans | [2] | 1,618,020 | 1,547,572 |
Commercial & Industrial | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans individually evaluated for impairment | 657 | ||
Loans related allowance individually evaluated for impairment | 580 | ||
Loans collectively evaluated for impairment | 584,632 | ||
Loans related allowance collectively evaluated for impairment | 3,341 | ||
Total loans | [3] | 655,157 | 585,289 |
Total Commercial | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans individually evaluated for impairment | 1,260 | ||
Loans related allowance individually evaluated for impairment | 580 | ||
Loans collectively evaluated for impairment | 2,131,601 | ||
Loans related allowance collectively evaluated for impairment | 18,082 | ||
Total loans | 2,273,177 | 2,132,861 | |
Residential Real Estate | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans individually evaluated for impairment | 14,654 | ||
Loans related allowance individually evaluated for impairment | 95 | ||
Loans collectively evaluated for impairment | 1,434,436 | ||
Loans related allowance collectively evaluated for impairment | 6,520 | ||
Total loans | [4] | 1,510,472 | 1,449,090 |
Home Equity | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans individually evaluated for impairment | 1,763 | ||
Loans related allowance individually evaluated for impairment | 291 | ||
Loans collectively evaluated for impairment | 289,111 | ||
Loans related allowance collectively evaluated for impairment | 1,099 | ||
Total loans | 287,134 | 290,874 | |
Other | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans individually evaluated for impairment | 106 | ||
Loans related allowance individually evaluated for impairment | 2 | ||
Loans collectively evaluated for impairment | 20,068 | ||
Loans related allowance collectively evaluated for impairment | 345 | ||
Total loans | [5] | 19,613 | 20,174 |
Total Consumer | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans individually evaluated for impairment | 1,869 | ||
Loans related allowance individually evaluated for impairment | 293 | ||
Loans collectively evaluated for impairment | 309,179 | ||
Loans related allowance collectively evaluated for impairment | 1,444 | ||
Total loans | $ 306,747 | $ 311,048 | |
[1] | Includes net unamortized loan origination costs of $5.2 million and $5.3 million , respectively, at March 31, 2020 and December 31, 2019 and net unamortized premiums on purchased loans of $724 thousand and $995 thousand , respectively, at March 31, 2020 and December 31, 2019 . | ||
[2] | Commercial real estate (“CRE”) consists of commercial mortgages primarily secured by income-producing property, as well as construction and development loans. Construction and development loans are made to businesses for land development or the on-site construction of industrial, commercial, or residential buildings. | ||
[3] | Commercial and industrial (“C&I”) consists of loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate. | ||
[4] | Residential real estate consists of mortgage and homeowner construction loans secured by one- to four-family residential properties. | ||
[5] | Other consists of loans to individuals secured by general aviation aircraft and other personal installment loans. |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances (Narrative Federal Home Loan Bank Advances) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Federal Home Loan Bank, Advances, Branch of FHLBB Bank [Line Items] | ||
Federal Home Loan Bank advances | $ 1,198,534 | $ 1,141,464 |
Federal Home Loan Bank of Boston [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLBB Bank [Line Items] | ||
Federal Home Loan Bank advances | 1,198,534 | 1,100,000 |
Unused line of credit with FHLBB | 40,000 | 40,000 |
Unused remaining available borrowing capacity with FHLBB | $ 469,500 | $ 535,000 |
Federal Home Loan Bank Advanc_3
Federal Home Loan Bank Advances (Federal Home Loan Bank Advances Maturity Schedule) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Federal Home Loan Bank, Advances, Branch of FHLBB Bank [Line Items] | ||
Federal Home Loan Bank advances | $ 1,198,534 | $ 1,141,464 |
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 | $ 1,031,103 | |
Weighted average rate for scheduled maturity through the end of the current year | 1.46% | |
Scheduled maturity in year two | $ 77,222 | |
Weighted average rate for scheduled maturity in year two | 2.52% | |
Scheduled maturity in year three | $ 813 | |
Weighted average rate for scheduled maturity in year three | 5.12% | |
Scheduled maturity in year four | $ 5,238 | |
Weighted average rate for scheduled maturity in year four | 3.80% | |
Scheduled maturity in year five | $ 40,900 | |
Weighted average rate for scheduled maturity in year five | 2.51% | |
Scheduled maturity after year five | $ 43,258 | |
Weighted average rate for scheduled maturity after year five | 3.29% | |
Federal Home Loan Bank advances | $ 1,198,534 | $ 1,100,000 |
Total weighted average rate | 1.64% |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Equity Additional Information [Table] [Line Items] | ||
2019 Stock Repurchase Plan, number of shares authorized | 850,000 | |
2019 Stock Repurchase Program, authorized amount, percentage of common stock | 5.00% | |
Treasury stock, shares acquired | 124,863 | |
Treasury stock, amount acquired | $ 4,322 | |
Treasury stock, average cost per share acquired | $ 34.61 | |
Trust preferred securities included in Tier 1 Capital | $ 22,000 | $ 22,000 |
Treasury Stock [Member] | ||
Equity Additional Information [Table] [Line Items] | ||
Treasury stock, amount acquired | $ 4,322 |
Shareholders' Equity (Regulator
Shareholders' Equity (Regulatory Captial Requirements) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Corporation [Member] | |||
Total Capital (to Risk-Weighted Assets): | |||
Total Capital | $ 500,239 | $ 494,603 | |
Total Capital to Risk-Weighted Assets | 12.42% | 12.94% | |
Total Capital for Capital Adequacy Purposes | $ 322,246 | $ 305,728 | |
Total Capital for Capital Adequacy Purposes to Risk-Weighted Assets | 8.00% | 8.00% | |
Tier 1 Capital (to Risk-Weighted Assets): | |||
Tier 1 Capital | $ 468,122 | $ 467,296 | |
Tier 1 Capital to Risk Weighted-Assets | 11.62% | 12.23% | |
Tier 1 Capital Required For Capital Adequacy Purposes | $ 241,685 | $ 229,296 | |
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 | $ 446,124 | $ 445,298 | |
Common Equity Tier 1 Capital to Risk Weighted Assets | 11.08% | 11.65% | |
Common Equity Tier 1 Capital Required for Capital Adequacy | $ 181,264 | $ 171,972 | |
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] | $ 468,122 | $ 467,296 |
Tier 1 Leverage Capital to Average Assets | [1] | 8.77% | 9.04% |
Tier 1 Leverage Capital Required for Capital Adequacy Purposes | [1] | $ 213,488 | $ 206,682 |
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 | $ 480,463 | $ 490,993 | |
Total Capital to Risk-Weighted Assets | 11.93% | 12.85% | |
Total Capital for Capital Adequacy Purposes | $ 322,210 | $ 305,693 | |
Total Capital for Capital Adequacy Purposes to Risk-Weighted Assets | 8.00% | 8.00% | |
Total Capital To Be Well Capitalized | $ 402,763 | $ 382,116 | |
Total Capital To Be Well Capitalized to Risk Weighted-Assets | 10.00% | 10.00% | |
Tier 1 Capital (to Risk-Weighted Assets): | |||
Tier 1 Capital | $ 448,346 | $ 463,686 | |
Tier 1 Capital to Risk Weighted-Assets | 11.13% | 12.13% | |
Tier 1 Capital Required For Capital Adequacy Purposes | $ 241,658 | $ 229,270 | |
Tier 1 Capital Required for Capital Adequacy Purposes to Risk Weighted-Assets | 6.00% | 6.00% | |
Tier 1 Capital Required To Be Well Capitalized | $ 322,210 | $ 305,693 | |
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 | $ 448,346 | $ 463,686 | |
Common Equity Tier 1 Capital to Risk Weighted Assets | 11.13% | 12.13% | |
Common Equity Tier 1 Capital Required for Capital Adequacy | $ 181,243 | $ 171,952 | |
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 | $ 261,796 | $ 248,375 | |
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] | $ 448,346 | $ 463,686 |
Tier 1 Leverage Capital to Average Assets | [1] | 8.40% | 8.98% |
Tier 1 Leverage Capital Required for Capital Adequacy Purposes | [1] | $ 213,403 | $ 206,596 |
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] | $ 266,754 | $ 258,245 |
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, 2020USD ($)derivative_instrument | Dec. 31, 2019USD ($)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 | 960,481 | 813,458 |
Mirror swaps with counterparties [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 960,481 | 813,458 |
Risk participation-in agreement [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 88,623 | 72,866 |
Interest rate lock commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 161,720 | 51,439 |
Forward sale commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 220,284 | 94,829 |
Derivatives Designated as Cash Flow Hedging Instruments [Member] | Interest rate caps [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | $ 22,700 | $ 22,700 |
Number of instruments held | derivative_instrument | 2 | 2 |
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] | ||
Notional amount | $ 60,000 | $ 60,000 |
Number of instruments held | derivative_instrument | 2 | 2 |
Derivatives Designated as Cash Flow Hedging Instruments [Member] | Interest rate floors [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | $ 200,000 | $ 300,000 |
Number of instruments held | derivative_instrument | 2 | 3 |
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 | $ 960,500 | $ 813,500 |
Not Designated as Hedging Instrument [Member] | Mirror swaps with counterparties [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 960,500 | 813,500 |
Not Designated as Hedging Instrument [Member] | Risk participation-out agreement [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 61,000 | 61,200 |
Not Designated as Hedging Instrument [Member] | Risk participation-in agreement [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | $ 88,600 | $ 72,900 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Fair Value of Derivatives by Balance Sheet Location) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Derivative Financial Instruments, Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Gross derivative positions | $ 90,153 | $ 29,218 | |
Amounts offset in balance sheet | [1] | 244 | 354 |
Net amounts presented in balance sheet | 89,909 | 28,864 | |
Collateral pledged | [2] | 0 | 0 |
Net amounts | 89,909 | 28,864 | |
Derivative Financial Instruments, Liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Gross derivative positions | 91,390 | 29,735 | |
Amounts offset in balance sheet | [1] | 244 | 354 |
Net amounts presented in balance sheet | 91,146 | 29,381 | |
Collateral pledged | [2] | 30,051 | 27,105 |
Net amounts | 61,095 | 2,276 | |
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 | 0 | 0 | |
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 | 0 | 0 | |
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 | 2,489 | 730 | |
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 | 236 | 3 | |
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 | 84,833 | 27,736 | |
Not Designated as Hedging Instrument [Member] | Interest rate swaps with customers [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities not designated | 9 | 358 | |
Not Designated as Hedging Instrument [Member] | Mirror swaps with counterparties [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets not designated | 8 | 351 | |
Not Designated as Hedging Instrument [Member] | Mirror swaps with counterparties [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities not designated | 85,108 | 27,819 | |
Not Designated as Hedging Instrument [Member] | Risk participation agreements [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets not designated | 11 | 1 | |
Not Designated as Hedging Instrument [Member] | Risk participation agreements [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities not designated | 3 | 1 | |
Not Designated as Hedging Instrument [Member] | Interest rate lock commitments [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets not designated | 4,937 | 1,097 | |
Not Designated as Hedging Instrument [Member] | Interest rate lock commitments [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities not designated | 105 | 0 | |
Not Designated as Hedging Instrument [Member] | Forward sale commitments [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative assets not designated | 128 | 30 | |
Not Designated as Hedging Instrument [Member] | Forward sale commitments [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liabilities not designated | $ 3,676 | $ 827 | |
[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, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net change in fair value of cash flow hedges | $ (1,050) | $ (442) |
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 | 22 | 0 |
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 | (1,325) | (466) |
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 | $ 253 | $ 24 |
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, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | $ 2,557 | $ 980 |
Interest rate swaps with customers [Member] | Loan related derivative income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | 58,531 | 10,310 |
Mirror swaps with counterparties [Member] | Loan related derivative income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | (56,190) | (9,604) |
Risk participation agreements [Member] | Loan related derivative income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | 114 | 0 |
Foreign exchange contracts [Member] | Loan related derivative income [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | 0 | 18 |
Interest rate lock commitments [Member] | Mortgage banking revenues [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | 3,736 | 685 |
Forward sale commitments [Member] | Mortgage banking revenues [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income | $ (3,634) | $ (429) |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Nonrecurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Allowance For Loan Loss Allocation on Collateral Dependent Impaired Loans | $ 529 | $ 871 |
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, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Mortgage loans held for sale, measured at fair value | $ 49,751 | $ 27,833 | |
Mortgage loans held for sale, amortized cost | 48,199 | 27,168 | |
Mortgage loans held for sale, difference between fair value and amortized cost | 1,552 | $ 665 | |
Mortgage Loans Held for Sale [Member] | |||
Change in fair value under fair value option election | $ 887 | $ (135) |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities, at fair value | $ 917,392 | $ 899,490 |
Mortgage loans held for sale, measured at fair value | 49,751 | 27,833 |
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 | 133,501 | 157,648 |
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 | 764,344 | 719,080 |
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 | 11,096 | 12,579 |
Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities, at fair value | 8,451 | 10,183 |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale, measured at fair value | 49,751 | 27,833 |
Derivative assets | 89,909 | 28,864 |
Total assets at fair value on a recurring basis | 1,057,052 | 956,187 |
Derivative liabilities | 91,146 | 29,381 |
Total liabilities at fair value on a recurring basis | 91,146 | 29,381 |
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 | 133,501 | 157,648 |
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 | 764,344 | 719,080 |
Recurring [Member] | Individual name issuer trust preferred debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities, at fair value | 11,096 | 12,579 |
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 | 8,451 | 10,183 |
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] | 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 | 49,751 | 27,833 |
Derivative assets | 89,909 | 28,864 |
Total assets at fair value on a recurring basis | 1,057,052 | 956,187 |
Derivative liabilities | 91,146 | 29,381 |
Total liabilities at fair value on a recurring basis | 91,146 | 29,381 |
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 | 133,501 | 157,648 |
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 | 764,344 | 719,080 |
Recurring [Member] | Level 2 [Member] | Individual name issuer trust preferred debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities, at fair value | 11,096 | 12,579 |
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 | 8,451 | 10,183 |
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] | 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 | Mar. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | [1] | $ 2,257 | |
Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | $ 444 | 1,448 | |
Property acquired through foreclosure or repossession | 1,109 | ||
Total assets at fair value on a nonrecurring basis | 444 | 2,557 | |
Nonrecurring [Member] | Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 0 | 0 | |
Property acquired through foreclosure or repossession | 0 | ||
Total assets at fair value on a nonrecurring basis | 0 | 0 | |
Nonrecurring [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 0 | 0 | |
Property acquired through foreclosure or repossession | 0 | ||
Total assets at fair value on a nonrecurring basis | 0 | 0 | |
Nonrecurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 444 | 1,448 | |
Property acquired through foreclosure or repossession | 1,109 | ||
Total assets at fair value on a nonrecurring basis | $ 444 | $ 2,557 | |
[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, 2020 | Dec. 31, 2019 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Collateral dependent impaired loans | [1] | $ 2,257 | |
Nonrecurring [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Collateral dependent impaired loans | $ 444 | 1,448 | |
Property acquired through foreclosure or repossession | 1,109 | ||
Nonrecurring [Member] | Level 3 [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Collateral dependent impaired loans | $ 444 | 1,448 | |
Property acquired through foreclosure or repossession | $ 1,109 | ||
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 | 10.00% | 0.00% | |
Appraisal adjustments | [2] | 0.00% | 0.00% |
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 | 12.00% | 12.00% | |
Appraisal adjustments | [2] | 22.00% | 22.00% |
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 | 100.00% | 20.00% | |
Appraisal adjustments | [2] | 23.00% | 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 | 12.00% | 12.00% | |
Appraisal adjustments | [2] | 22.00% | 22.00% |
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 | 42.00% | 5.00% | |
Appraisal adjustments | [2] | 15.00% | 67.00% |
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 | 12.00% | 12.00% | |
Appraisal adjustments | [2] | 22.00% | 22.00% |
[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, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net of allowance for credit losses on loans | $ 4,050,731 | $ 3,865,985 |
Federal Home Loan Bank advances | 1,198,534 | 1,141,464 |
Junior subordinated debentures | 22,681 | 22,681 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net of allowance for credit losses on loans | 4,050,731 | 3,865,985 |
Time deposits | 1,208,978 | 1,069,323 |
Federal Home Loan Bank advances | 1,198,534 | 1,141,464 |
Junior subordinated debentures | 22,681 | 22,681 |
Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net of allowance for credit losses on loans | 4,013,945 | 3,869,192 |
Time deposits | 1,220,528 | 1,082,830 |
Federal Home Loan Bank advances | 1,211,630 | 1,145,242 |
Junior subordinated debentures | 17,714 | 19,628 |
Fair Value Measurement [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net of allowance for credit losses on loans | 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] | ||
Loans, net of allowance for credit losses on loans | 0 | 0 |
Time deposits | 1,220,528 | 1,082,830 |
Federal Home Loan Bank advances | 1,211,630 | 1,145,242 |
Junior subordinated debentures | 17,714 | 19,628 |
Fair Value Measurement [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net of allowance for credit losses on loans | 4,013,945 | 3,869,192 |
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, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Receivables from contracts with customers | $ 4,000 | $ 4,500 |
Contract cost assets | $ 905 | $ 905 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Net interest income | $ 32,602 | $ 34,584 |
Asset-based wealth management revenues | 8,355 | 8,921 |
Transaction-based wealth management revenues | 334 | 331 |
Wealth management revenues | 8,689 | 9,252 |
Mortgage banking revenues | 6,096 | 2,646 |
Card interchange fees | 947 | 997 |
Service charges on deposit accounts | 860 | 875 |
Loan related derivative income | 2,455 | 724 |
Income from bank-owned life insurance | 564 | 649 |
Other income | 316 | 224 |
Total noninterest income | 19,927 | 15,367 |
Total revenues | 52,529 | 49,951 |
Revenue from contracts in scope of Topic 606 | 10,743 | 11,348 |
Net Interest Income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts in scope of Topic 606 | 0 | 0 |
Asset-based Wealth Management Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts in scope of Topic 606 | 8,355 | 8,921 |
Transaction-based Wealth Management Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts in scope of Topic 606 | 334 | 331 |
Total Wealth Management Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts in scope of Topic 606 | 8,689 | 9,252 |
Mortgage Banking Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts in scope of Topic 606 | 0 | 0 |
Card Interchange Fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts in scope of Topic 606 | 947 | 997 |
Service Charges on Deposit Accounts | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts in scope of Topic 606 | 860 | 875 |
Loan Related Derivative Income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts in scope of Topic 606 | 0 | 0 |
Income From Bank-owned Life Insurance | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts in scope of Topic 606 | 0 | 0 |
Other Income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts in scope of Topic 606 | 247 | 224 |
Total Noninterest Income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts in scope of Topic 606 | 10,743 | 11,348 |
Total Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contracts in scope of Topic 606 | $ 10,743 | $ 11,348 |
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, 2020 | Mar. 31, 2019 | |
Revenue from contracts in scope of Topic 606 | $ 10,743 | $ 11,348 |
Wealth Management Revenues | ||
Revenue from contracts in scope of Topic 606 | 8,689 | 9,252 |
Wealth Management Revenues | Transferred over Time [Member] | ||
Revenue from contracts in scope of Topic 606 | 8,689 | 9,252 |
Card Interchange Fees | ||
Revenue from contracts in scope of Topic 606 | 947 | 997 |
Card Interchange Fees | Transferred at Point in Time [Member] | ||
Revenue from contracts in scope of Topic 606 | 947 | 997 |
Service Charges on Deposit Accounts | ||
Revenue from contracts in scope of Topic 606 | 860 | 875 |
Service Charges on Deposit Accounts | Transferred at Point in Time [Member] | ||
Revenue from contracts in scope of Topic 606 | 667 | 662 |
Service Charges on Deposit Accounts | Transferred over Time [Member] | ||
Revenue from contracts in scope of Topic 606 | 193 | 213 |
Other Income | ||
Revenue from contracts in scope of Topic 606 | 247 | 224 |
Other Income | Transferred at Point in Time [Member] | ||
Revenue from contracts in scope of Topic 606 | 200 | 179 |
Other Income | Transferred over Time [Member] | ||
Revenue from contracts in scope of Topic 606 | $ 47 | $ 45 |
Defined Benefit Pension Plans_2
Defined Benefit Pension Plans (Narrative) (Details) | 120 Months Ended |
Dec. 30, 2023 | |
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, 2020 | Mar. 31, 2019 | ||
Qualified Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | [1] | $ 541 | $ 509 |
Interest cost | [2] | 626 | 742 |
Expected return on plan assets | [2] | (1,135) | (1,124) |
Amortization of prior service (credit) cost | [2] | 0 | (4) |
Recognized net actuarial loss | [2] | 396 | 198 |
Net periodic benefit cost | 428 | 321 | |
Non-Qualified Retirement Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | [1] | 43 | 31 |
Interest cost | [2] | 116 | 141 |
Expected return on plan assets | [2] | 0 | 0 |
Amortization of prior service (credit) cost | [2] | 0 | 0 |
Recognized net actuarial loss | [2] | 140 | 102 |
Net periodic benefit cost | $ 299 | $ 274 | |
[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, 2020 | Mar. 31, 2019 | |
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 | 3.42% | 4.38% |
Equivalent single discount rate for service cost | 3.54% | 4.44% |
Equivalent single discount rate for interest cost | 3.07% | 4.12% |
Expected long-term return on plan assets | 5.75% | 5.75% |
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 | 3.30% | 4.28% |
Equivalent single discount rate for service cost | 3.62% | 4.48% |
Equivalent single discount rate for interest cost | 2.93% | 3.98% |
Rate of compensation increase | 3.75% | 3.75% |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2020$ / 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 | $ 34.22 |
Award vesting period | 3 years |
Performance share awards, shares vesting | shares | 65,632 |
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 | 3,165 |
Nonvested share units weighted average grant date fair value | $ / shares | $ 51.28 |
Business Segments (Statement of
Business Segments (Statement of Operations and Total Assets by Reportable Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | $ 32,602 | $ 34,584 | |
Provision for credit losses | 7,036 | 650 | |
Net interest income after provision for loan losses | 25,566 | 33,934 | |
Noninterest income | 19,927 | 15,367 | |
Depreciation and amortization expense | 1,013 | 1,077 | |
Other noninterest expenses related to segments | 29,440 | 25,887 | |
Total noninterest expense | 30,453 | 26,964 | |
Income before income taxes | 15,040 | 22,337 | |
Income tax expense | 3,139 | 4,842 | |
Net income | 11,901 | 17,495 | |
Total assets | 5,620,979 | 5,154,729 | $ 5,292,659 |
Expenditures for long-lived assets | 628 | 1,655 | |
Commercial Banking [Member] | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | 29,009 | 27,302 | |
Provision for credit losses | 7,036 | 650 | |
Net interest income after provision for loan losses | 21,973 | 26,652 | |
Noninterest income | 10,665 | 5,455 | |
Depreciation and amortization expense | 619 | 672 | |
Other noninterest expenses related to segments | 18,842 | 15,758 | |
Total noninterest expense | 19,461 | 16,430 | |
Income before income taxes | 13,177 | 15,677 | |
Income tax expense | 2,764 | 3,421 | |
Net income | 10,413 | 12,256 | |
Total assets | 4,367,469 | 3,884,052 | |
Expenditures for long-lived assets | 526 | 1,300 | |
Wealth Management Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | (67) | (127) | |
Provision for credit losses | 0 | 0 | |
Net interest income after provision for loan losses | (67) | (127) | |
Noninterest income | 8,689 | 9,252 | |
Depreciation and amortization expense | 354 | 365 | |
Other noninterest expenses related to segments | 6,846 | 6,478 | |
Total noninterest expense | 7,200 | 6,843 | |
Income before income taxes | 1,422 | 2,282 | |
Income tax expense | 356 | 617 | |
Net income | 1,066 | 1,665 | |
Total assets | 74,283 | 76,657 | |
Expenditures for long-lived assets | 53 | 292 | |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Net interest income (expense) | 3,660 | 7,409 | |
Provision for credit losses | 0 | 0 | |
Net interest income after provision for loan losses | 3,660 | 7,409 | |
Noninterest income | 573 | 660 | |
Depreciation and amortization expense | 40 | 40 | |
Other noninterest expenses related to segments | 3,752 | 3,651 | |
Total noninterest expense | 3,792 | 3,691 | |
Income before income taxes | 441 | 4,378 | |
Income tax expense | 19 | 804 | |
Net income | 422 | 3,574 | |
Total assets | 1,179,227 | 1,194,020 | |
Expenditures for long-lived assets | $ 49 | $ 63 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (Activity in Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Changes in fair value of available for sale debt securities, before tax | $ 16,740 | $ 14,406 | |
Changes in fair value of available for sale debt securities, tax | 3,934 | 3,385 | |
Changes in fair value of available for sale debt securities | 12,806 | 11,021 | |
Net gains (losses) on debt securities reclassified into earnings, before tax | 0 | 0 | |
Net gains (losses) on debt securities reclassified into earnings, tax | 0 | 0 | |
Net gains (losses) on debt securities reclassified into earnings | 0 | 0 | |
Net change in fair value of available for sale debt securities, before tax | 16,740 | 14,406 | |
Net change in fair value of available for sale debt securities, tax | 3,934 | 3,385 | |
Net change in fair value of available for sale debt securities | 12,806 | 11,021 | |
Change in fair value of cash flow hedges, before tax | (1,402) | (546) | |
Change in fair value of cash flow hedges, tax | (330) | (128) | |
Change in fair value of cash flow hedges | (1,072) | (418) | |
Net cash flow hedge losses reclassified into earnings, before tax | [1] | 29 | (31) |
Net cash flow hedge losses reclassified into earnings, tax | [1] | 7 | (7) |
Net cash flow hedge losses reclassified into earnings | [1] | 22 | (24) |
Net change in fair value of cash flow hedges, before tax | (1,373) | (577) | |
Net change in fair value of cash flow hedges, tax | (323) | (135) | |
Net change in fair value of cash flow hedges | (1,050) | (442) | |
Amortization of net actuarial losses, before tax | [2] | 536 | 300 |
Amortization of net actuarial losses, tax | [2] | 126 | 70 |
Amortization of net actuarial losses | [2] | 410 | 230 |
Amortization of net prior service credits, before tax | [2] | 0 | (4) |
Amortization of net prior service credits, tax | [2] | 0 | (1) |
Amortization of net prior service credits | [2] | 0 | (3) |
Net change in defined benefit plan obligations, before tax | 536 | 296 | |
Net change in defined benefit plan obligations, tax | 126 | 69 | |
Net change in defined benefit plan obligations | 410 | 227 | |
Total other comprehensive income (loss), before tax | 15,903 | 14,125 | |
Total other comprehensive income (loss), tax | 3,737 | 3,319 | |
Total other comprehensive income (loss), net of tax | $ 12,166 | $ 10,806 | |
[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, 2020 | Mar. 31, 2019 | |
Accumulated other comprehensive income (loss), beginning balance | $ (11,237) | $ (28,309) |
Other comprehensive income (loss) before reclassifications | 11,734 | 10,603 |
Amounts reclassed from accumulated other comprehensive income (loss) | 432 | 203 |
Total other comprehensive income (loss), net of tax | 12,166 | 10,806 |
Accumulated other comprehensive income (loss), ending balance | 929 | (17,503) |
Net Unrealized Gains (Losses) on AFS Securities [Member] | ||
Accumulated other comprehensive income (loss), beginning balance | 3,226 | (16,762) |
Other comprehensive income (loss) before reclassifications | 12,806 | 11,021 |
Amounts reclassed from accumulated other comprehensive income (loss) | 0 | 0 |
Total other comprehensive income (loss), net of tax | 12,806 | 11,021 |
Accumulated other comprehensive income (loss), ending balance | 16,032 | (5,741) |
Net Unrealized Losses on Cash Flow Hedges [Member] | ||
Accumulated other comprehensive income (loss), beginning balance | (793) | 191 |
Other comprehensive income (loss) before reclassifications | (1,072) | (418) |
Amounts reclassed from accumulated other comprehensive income (loss) | 22 | (24) |
Total other comprehensive income (loss), net of tax | (1,050) | (442) |
Accumulated other comprehensive income (loss), ending balance | (1,843) | (251) |
Pension Benefit Adjustment [Member] | ||
Accumulated other comprehensive income (loss), beginning balance | (13,670) | (11,738) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassed from accumulated other comprehensive income (loss) | 410 | 227 |
Total other comprehensive income (loss), net of tax | 410 | 227 |
Accumulated other comprehensive income (loss), ending balance | $ (13,260) | $ (11,511) |
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, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income | $ 11,901 | $ 17,495 |
Less dividends and undistributed earnings allocated to participating securities | (32) | (34) |
Net income applicable to common shareholders | $ 11,869 | $ 17,461 |
Weighted average common shares outstanding - basic | 17,345,000 | 17,304,000 |
Basic earnings per common share | $ 0.68 | $ 1.01 |
Less dividends and undistributed earnings allocated to participating securities | $ (32) | $ (34) |
Net income applicable to common shareholders | $ 11,869 | $ 17,461 |
Dilutive effect of common stock equivalents | 96,000 | 97,000 |
Weighted average common shares outstanding - diluted | 17,441,000 | 17,401,000 |
Diluted earnings per common share | $ 0.68 | $ 1 |
Antidilutive common stock equivalents | 152,010 | 87,775 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Operating lease rent expense | [1] | $ 964 | $ 939 |
Options to extend reasonably certain of being exercised | 2,600 | ||
Short-term operating lease liabilities | $ 2,400 | ||
[1] | Included in net occupancy expenses in the Unaudited Consolidated Income Statement |
Leases Leases (Schedule of cert
Leases Leases (Schedule of certain lease terms) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Weighted average discount rate | 3.68% | 3.67% |
Number of operating leases not yet commenced | 1 | 1 |
Weighted average remaining lease term | 13 years 10 months 24 days | 14 years |
Minimum [Member] | ||
Range of lease expiration dates | 1 month | 4 months |
Range of lease renewal options | 1 year | 1 year |
Maximum [Member] | ||
Range of lease expiration dates | 21 years | 21 years |
Range of lease renewal options | 5 years | 5 years |
Leases (Schedule of Operating L
Leases (Schedule of Operating Lease Payments) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | ||
Leases [Abstract] | ||||
Operating lease minimum payments, Due Current Year | $ 2,560 | |||
Operating lease minimum payments, Due Year Two | 3,290 | |||
Operating lease minimum payments, Due Year Three | 3,165 | |||
Operating lease minimum payments, Due Year Four | 3,097 | |||
Operating lease minimum payments, Due Year Five | 2,904 | |||
Operating lease minimum payments, Due after Year Five | 21,818 | |||
Total operating lease payments | [1] | 36,834 | ||
Interest | 8,650 | |||
Present value of operating lease liabilities | $ 28,184 | [2] | $ 28,861 | |
[1] | Includes $2.6 million | |||
[2] | Includes short-term operating lease liabilities of $2.4 million |
Leases (Lease Cost and Cash Pai
Leases (Lease Cost and Cash Paid) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Leases [Abstract] | |||
Operating lease cost | $ 951 | $ 928 | |
Variable lease cost | 13 | 11 | |
Total lease cost | [1] | 964 | 939 |
Cash paid reducing operating lease liabilities | $ 934 | $ 920 | |
[1] | Included in net occupancy expenses in the Unaudited Consolidated Income Statement |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Line Items] | ||||
Adoption of Topic 326 | [1] | $ 1,483 | ||
Allowance for credit losses on unfunded commitments | $ 2,039 | $ 293 | ||
Commitments to extend credit on standby letters of credit [Member] | Commitments to extend credit [Member] | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Contract amount | $ 9,431 | $ 13,710 | ||
Unfunded Loan Commitment [Member] | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Adoption of Topic 326 | [1] | $ 1,500 | ||
[1] | Adoption of the CECL accounting standard effective January 1, 2020. |
Commitments and Contingencies_3
Commitments and Contingencies (Financial Instruments with Off Balance Sheet Risk) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Interest rate lock commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | $ 161,720 | $ 51,439 |
Forward sale commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 220,284 | 94,829 |
Interest rate swaps with customers [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 960,481 | 813,458 |
Mirror swaps with counterparties [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 960,481 | 813,458 |
Risk participation-in agreement [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 88,623 | 72,866 |
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 | 437,120 | 471,338 |
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 | 300,122 | 295,687 |
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 | 85,174 | 88,613 |
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 | $ 9,431 | $ 13,710 |
Commitments and Contingencies_4
Commitments and Contingencies (ACL on Unfunded Commitments Rollforward) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Jan. 01, 2020 | ||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Beginning balance | $ 293 | ||
Adoption of Topic 326 | [1] | $ 1,483 | |
Provision | 263 | ||
Ending balance | 2,039 | ||
Commercial Real Estate | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Beginning balance | 136 | ||
Adoption of Topic 326 | [1] | 817 | |
Provision | 179 | ||
Ending balance | 1,132 | ||
Commercial & Industrial | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Beginning balance | 144 | ||
Adoption of Topic 326 | [1] | 626 | |
Provision | 77 | ||
Ending balance | 847 | ||
Total Commercial | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Beginning balance | 280 | ||
Adoption of Topic 326 | [1] | 1,443 | |
Provision | 256 | ||
Ending balance | 1,979 | ||
Residential Real Estate | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Beginning balance | 6 | ||
Adoption of Topic 326 | [1] | 34 | |
Provision | 2 | ||
Ending balance | 42 | ||
Home Equity | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Beginning balance | 0 | ||
Adoption of Topic 326 | [1] | 0 | |
Provision | 0 | ||
Ending balance | 0 | ||
Other | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Beginning balance | 7 | ||
Adoption of Topic 326 | [1] | 6 | |
Provision | 5 | ||
Ending balance | 18 | ||
Total Consumer | |||
Off-Balance Sheet, Credit Loss, Liability [Roll Forward] | |||
Beginning balance | 7 | ||
Adoption of Topic 326 | [1] | $ 6 | |
Provision | 5 | ||
Ending balance | $ 18 | ||
[1] | Adoption of the CECL accounting standard effective January 1, 2020. |