DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Jan. 31, 2021 | |
Cover [Abstract] | ||
Entity Central Index Key | 0000737468 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-32991 | |
Entity Registrant Name | WASHINGTON TRUST BANCORP, INC | |
Entity Incorporation, State or Country Code | RI | |
Entity Tax Identification Number | 05-0404671 | |
Entity Address, Address Line One | 23 Broad Street, | |
Entity Address, City or Town | Westerly, | |
Entity Address, State or Province | RI | |
Entity Address, Postal Zip Code | 02891 | |
City Area Code | 401 | |
Local Phone Number | 348-1200 | |
Title of 12(b) Security | COMMON STOCK, $.0625 PAR VALUE PER SHARE | |
Trading Symbol | WASH | |
Security Exchange Name | NASDAQ | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Public Float | $ 553,933,925 | |
Entity Common Stock, Shares Outstanding | 17,265,339 | |
Documents Incorporated by Reference [Text Block] | Portions of the Registrant’s Proxy Statement dated March 16, 2021 for the Annual Meeting of Shareholders to be held on April 27, 2021 are incorporated by reference into Part III of this Form 10-K. | |
ICFR Auditor Attestation Flag | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | ||
Assets: | ||||
Cash and due from banks | $ 194,143 | $ 132,193 | ||
Short-term investments | 8,125 | 6,262 | ||
Mortgage loans held for sale, at fair value | 61,614 | 27,833 | ||
Available for sale debt securities | 894,571 | 899,490 | ||
Federal Home Loan Bank stock, at cost | 30,285 | 50,853 | ||
Loans: | ||||
Total loans | [1] | 4,195,990 | 3,892,999 | |
Less: allowance for credit losses on loans | 44,106 | 27,014 | ||
Net loans | 4,151,884 | 3,865,985 | ||
Premises and equipment, net | 28,870 | 28,700 | ||
Operating lease right-of-use assets | 29,521 | 26,792 | ||
Investment in bank-owned life insurance | 84,193 | 82,490 | ||
Goodwill | 63,909 | 63,909 | ||
Identifiable intangible assets, net | 6,305 | 7,218 | ||
Other assets | 159,749 | 100,934 | ||
Total assets | 5,713,169 | 5,292,659 | ||
Liabilities: | ||||
Noninterest-bearing deposits | 832,287 | 609,924 | ||
Interest-bearing deposits | 3,546,066 | 2,888,958 | ||
Total deposits | 4,378,353 | 3,498,882 | ||
Federal Home Loan Bank advances | 593,859 | 1,141,464 | ||
Junior subordinated debentures | 22,681 | 22,681 | ||
Operating lease liabilities | 31,717 | [2] | 28,861 | |
Other liabilities | 152,364 | 97,279 | ||
Total liabilities | 5,178,974 | 4,789,167 | ||
Commitments and contingencies (Note 22) | ||||
Shareholders’ Equity: | ||||
Common stock | 1,085 | 1,085 | ||
Paid-in capital | 125,610 | 123,281 | ||
Retained earnings | 418,246 | 390,363 | ||
Accumulated other comprehensive loss | (7,391) | (11,237) | ||
Treasury stock, at cost | (3,355) | 0 | ||
Total shareholders’ equity | 534,195 | 503,492 | ||
Total liabilities and shareholders’ equity | $ 5,713,169 | $ 5,292,659 | ||
[1] | Includes net unamortized loan origination costs of $1.5 million and $5.3 million, respectively, at December 31, 2020 and 2019 and net unamortized premiums on purchased loans of $787 thousand and $995 thousand, respectively, at December 31, 2020 and 2019. | |||
[2] | Includes short-term operating lease liabilities of $2.9 million. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Available for sale securities amortized cost | $ 881,570 | $ 895,273 |
Allowance for credit losses on securities | $ 0 | |
Common stock, par value (in dollars per share) | $ 0.0625 | $ 0.0625 |
Common stock, shares authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, shares issued (in shares) | 17,363,457 | 17,363,455 |
Common stock, shares outstanding (in shares) | 17,265,337 | 17,363,455 |
Treasury stock (in shares) | 98,120 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Interest income: | ||||
Interest and fees on loans | $ 145,425 | $ 165,519 | $ 149,932 | |
Interest on mortgage loans held for sale | 1,762 | 1,237 | 1,212 | |
Taxable interest on debt securities | 20,050 | 26,367 | 21,816 | |
Nontaxable interest on debt securities | 0 | 18 | 61 | |
Dividends on Federal Home Loan Bank stock | 2,240 | 2,855 | 2,369 | |
Other interest income | 459 | 1,667 | 1,017 | |
Interest and dividend income | 169,936 | 197,663 | 176,407 | |
Interest expense: | ||||
Deposits | 25,812 | 37,101 | 24,175 | |
Federal Home Loan Bank advances | 15,806 | 26,168 | 19,073 | |
Junior subordinated debentures | 641 | 980 | 869 | |
Other interest expense | 233 | 0 | 0 | |
Interest expense | 42,492 | 64,249 | 44,117 | |
Net interest income (expense) | [1] | 127,444 | 133,414 | 132,290 |
Provision for credit losses | 12,342 | 1,575 | 1,550 | |
Net interest income after provision for credit losses | 115,102 | 131,839 | 130,740 | |
Noninterest income: | ||||
Wealth management revenues | [1] | 35,454 | 36,848 | 38,341 |
Mortgage banking revenues | [1] | 47,377 | 14,795 | 10,381 |
Card interchange fees | [1] | 4,287 | 4,214 | 3,768 |
Service charges on deposit accounts | [1] | 2,742 | 3,684 | 3,628 |
Loan related derivative income | [1] | 3,991 | 3,993 | 2,461 |
Income from bank-owned life insurance | [1] | 2,491 | 2,354 | 2,196 |
Net realized losses on securities | [1] | 0 | (53) | 0 |
Other income | [1] | 3,100 | 1,245 | 1,339 |
Noninterest income | [1] | 99,442 | 67,080 | 62,114 |
Noninterest expense: | ||||
Salaries and employee benefits | 82,899 | 72,761 | 69,277 | |
Outsourced services | 11,894 | 10,598 | 8,684 | |
Net occupancy | 8,023 | 7,821 | 7,891 | |
Equipment | 3,831 | 4,081 | 4,312 | |
Legal, audit and professional fees | 3,747 | 2,535 | 2,427 | |
FDIC deposit insurance costs | 1,818 | 618 | 1,612 | |
Advertising and promotion | 1,469 | 1,534 | 1,406 | |
Amortization of intangibles | 914 | 943 | 979 | |
Debt prepayment penalties | 1,413 | 0 | 0 | |
Change in fair value of contingent consideration | 0 | 0 | (187) | |
Other expenses | 9,376 | 9,849 | 9,761 | |
Noninterest expense | 125,384 | 110,740 | 106,162 | |
Income before income taxes | 89,160 | 88,179 | 86,692 | |
Income tax expense | 19,331 | 19,061 | 18,260 | |
Net income | 69,829 | 69,118 | 68,432 | |
Net income available to common shareholders | $ 69,678 | $ 68,979 | $ 68,288 | |
Weighted average common shares outstanding - basic | 17,282 | 17,331 | 17,272 | |
Weighted average common shares outstanding - diluted | 17,402 | 17,414 | 17,391 | |
Per share information: | ||||
Basic earnings per common share (in dollars per share) | $ 4.03 | $ 3.98 | $ 3.95 | |
Diluted earnings per common share (in dollars per share) | $ 4 | $ 3.96 | $ 3.93 | |
[1] | As reported in the Consolidated Statements of Income. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 69,829 | $ 69,118 | $ 68,432 |
Other comprehensive income (loss), net of tax: | |||
Net change in fair value of available for sale debt securities | 6,655 | 19,988 | (9,228) |
Net change in fair value of cash flow hedges | (654) | (984) | 619 |
Net change in defined benefit plan obligations | (2,155) | (1,932) | 3,810 |
Total other comprehensive income (loss), net of tax | 3,846 | 17,072 | (4,799) |
Total comprehensive income | $ 73,675 | $ 86,190 | $ 63,633 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
Common stock, shares outstanding, beginning balance at Dec. 31, 2017 | 17,227,000 | |||||
Stockholders' equity, beginning balance at Dec. 31, 2017 | $ 413,284 | $ 1,077 | $ 117,961 | $ 317,756 | $ (23,510) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 68,432 | 68,432 | ||||
Total other comprehensive income (loss), net of tax | (4,799) | (4,799) | ||||
Cash dividends declared | (30,664) | (30,664) | ||||
Share-based compensation | 2,602 | 2,602 | ||||
Exercise of stock options, issuance of other compensation-related equity awards, net of awards surrendered, shares | 75,000 | |||||
Exercise of stock options, issuance of other compensation-related equity awards, net of awards surrendered | (671) | $ 4 | (675) | 0 | ||
Common stock, shares outstanding, ending balance at Dec. 31, 2018 | 17,302,000 | |||||
Stockholders' equity, ending balance at Dec. 31, 2018 | 448,184 | $ 1,081 | 119,888 | 355,524 | (28,309) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 69,118 | 69,118 | ||||
Total other comprehensive income (loss), net of tax | 17,072 | 17,072 | ||||
Cash dividends declared | (35,001) | (35,001) | ||||
Share-based compensation | 3,124 | 3,124 | ||||
Exercise of stock options, issuance of other compensation-related equity awards, net of awards surrendered, shares | 61,000 | |||||
Exercise of stock options, issuance of other compensation-related equity awards, net of awards surrendered | $ 273 | $ 4 | 269 | 0 | ||
Common stock, shares outstanding, ending balance at Dec. 31, 2019 | 17,363,455 | 17,363,000 | ||||
Stockholders' equity, ending balance at Dec. 31, 2019 | $ 503,492 | $ 1,085 | 123,281 | 390,363 | (11,237) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 69,829 | 69,829 | ||||
Total other comprehensive income (loss), net of tax | 3,846 | 3,846 | ||||
Cash dividends declared | (35,838) | (35,838) | ||||
Share-based compensation | 3,766 | 3,766 | ||||
Exercise of stock options, issuance of other compensation-related equity awards, net of awards surrendered, shares | 27,000 | |||||
Exercise of stock options, issuance of other compensation-related equity awards, net of awards surrendered | $ (470) | $ 0 | (1,437) | 967 | ||
Treasury stock purchased, shares | (125,000) | |||||
Treasury stock purchased | $ (4,322) | (4,322) | ||||
Common stock, shares outstanding, ending balance at Dec. 31, 2020 | 17,265,337 | 17,265,000 | ||||
Stockholders' equity, ending balance at Dec. 31, 2020 | $ 534,195 | $ 1,085 | $ 125,610 | $ 418,246 | $ (7,391) | $ (3,355) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||
Cash dividends declared per share (in dollars per share) | $ 0.52 | $ 0.51 | $ 0.51 | $ 0.51 | $ 0.51 | $ 0.51 | $ 0.51 | $ 0.47 | $ 2.05 | $ 2 | $ 1.76 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Cash flows from operating activities: | ||||
Net income | $ 69,829 | $ 69,118 | $ 68,432 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Provision for credit losses | 12,342 | 1,575 | 1,550 | |
Depreciation of premises and equipment | 3,176 | 3,291 | 3,282 | |
Net amortization of premiums and discounts on securities and loans | 5,720 | 4,492 | 2,865 | |
Amortization of intangibles | 914 | 943 | 979 | |
Share–based compensation | 3,766 | 3,124 | 2,602 | |
Tax (expense) benefit from stock option exercises and other equity awards | (103) | 248 | 496 | |
Deferred income tax benefit | (3,130) | (1,491) | (63) | |
Income from bank-owned life insurance | [1] | (2,491) | (2,354) | (2,196) |
Net gains on loan sales, including fair value adjustments | (48,005) | (14,332) | (9,749) | |
Net realized losses on securities | [1] | 0 | 53 | 0 |
Proceeds from sales of loans, net | 1,117,188 | 530,713 | 391,960 | |
Loans originated for sale | (1,114,448) | (525,675) | (378,896) | |
Change in fair value of contingent consideration liability | 0 | 0 | (187) | |
(Increase) decrease in operating lease right-of-use assets | (2,729) | 2,131 | 0 | |
Increase (decrease) in operating lease liabilities | 2,856 | (1,992) | 0 | |
Increase in other assets | (57,730) | (27,961) | (7,456) | |
Increase in other liabilities | 49,323 | 31,552 | 9,257 | |
Net cash provided by (used in) operating activities | 36,478 | 73,435 | 82,876 | |
Cash flows from investing activities: | ||||
Purchases of mortgage-backed available for sale debt securities | (369,166) | (178,797) | (175,539) | |
Purchases of other available for sale debt securities | (149,899) | (27,520) | (76,264) | |
Proceeds from sale of other available for sale debt securities | 0 | 11,877 | 0 | |
Maturities and principal payments of mortgage-backed available for sale debt securities | 351,161 | 147,620 | 83,197 | |
Maturities and principal payments of other available for sale debt securities | 176,000 | 108,306 | 7,301 | |
Maturities, calls and principal payments of held-to-maturity debt securities: MBS | 0 | 0 | 2,029 | |
Net redemption (purchases) of Federal Home Loan Bank stock | 20,568 | (4,785) | (5,551) | |
Net increase in loans | (241,418) | (154,502) | (306,299) | |
Purchases of loans | (51,659) | (60,465) | (1,780) | |
Proceeds from the sale of property acquired through foreclosure or repossession | 1,392 | 2,000 | 49 | |
Purchases of premises and equipment | (3,406) | (3,132) | (3,974) | |
Proceeds from sale of premises | 0 | 213 | 0 | |
Purchases of bank-owned life insurance | 0 | 0 | (5,000) | |
Proceeds from sale of equity investment in real estate limited partnership | 1,400 | 0 | 0 | |
Proceeds from bank-owned life insurance | 787 | 326 | 0 | |
Equity investment in real estate limited partnership | 0 | (1,256) | 0 | |
Net cash provided by (used in) investing activities | (264,240) | (160,115) | (481,831) | |
Cash flows from financing activities: | ||||
Net increase (decrease) in deposits | 879,471 | (25,166) | 281,341 | |
Proceeds from Federal Home Loan Bank advances | 1,988,500 | 1,982,000 | 2,040,000 | |
Repayment of Federal Home Loan Bank advances | (2,536,105) | (1,791,258) | (1,880,634) | |
Proceeds from Payment Protection Program Lending Facility | 200,628 | 0 | 0 | |
Repayment of Payment Protection Program Lending Facility | (200,628) | 0 | 0 | |
Payment of contingent consideration liability | 0 | 0 | (1,217) | |
Treasury stock purchased | (4,322) | 0 | 0 | |
Net proceeds from stock option exercises and issuance of other equity awards, net of awards surrendered | (470) | 273 | (671) | |
Cash dividends paid | (35,499) | (34,189) | (29,312) | |
Net cash provided by (used in) financing activities | 291,575 | 131,660 | 409,507 | |
Net increase in cash and cash equivalents | 63,813 | 44,980 | 10,552 | |
Cash and cash equivalents at beginning of year | 138,455 | 93,475 | 82,923 | |
Cash and cash equivalents at end of year | 202,268 | 138,455 | 93,475 | |
Noncash Activities: | ||||
Loans charged-off | 1,317 | 2,020 | 1,187 | |
Loans transferred to property acquired through foreclosure or repossession | 313 | 2,000 | 3,074 | |
Operating lease right-of-use assets | 0 | 28,923 | 0 | |
Operating lease liabilities | 0 | 30,853 | 0 | |
Fair value of held-to-maturity securities transferred to available for sale | 0 | 10,316 | 0 | |
Supplemental Disclosures: | ||||
Interest payments | 45,294 | 64,496 | 41,285 | |
Income tax payments | $ 21,094 | $ 19,759 | $ 17,148 | |
[1] | As reported in the Consolidated Statements of Income. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation Washington Trust Bancorp, Inc. (the “Bancorp”) is a publicly-owned registered bank holding company 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 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 in consolidation. 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 Consolidated Balance Sheets. Interest expense on the junior subordinated debentures is included in the 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. Material estimates that are particularly susceptible to change are the determination of the allowance for credit losses on loans, the valuation of goodwill and identifiable intangible assets and the accounting for defined benefit pension plans. 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. Short-term Investments Short-term investments consist of highly liquid investments with a maturity date of three months or less when purchased and are considered to be cash equivalents. The Corporation’s short-term investments may be composed of overnight federal funds sold, securities purchased under resale agreements, money market mutual funds and U.S. Treasury bills. Securities Management determines the appropriate classification of securities at the time of purchase. Investments in debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity and carried at amortized cost. Securities not classified as held to maturity are classified as available for sale. Securities available for sale consist of debt securities that are available for sale to respond to changes in market interest rates, liquidity needs, changes in funding sources and other similar factors. These assets are specifically identified and are carried at fair value. Changes in fair value of available for sale securities, net of applicable income taxes, are reported as a separate component of shareholders’ equity. Washington Trust does not currently have securities designated as held to maturity and also does not maintain a trading portfolio. Premiums and discounts are amortized and accreted over the term of the securities on a method that approximates the level yield method. The amortization and accretion is included in interest income on securities. Interest income is recognized when earned. Realized gains or losses from sales of securities are recorded on the trade date and are determined using the specific identification method. The fair values of securities may be based on either quoted market prices or third party pricing services. Effective January 1, 2020, the Corporation adopted the provisions of ASC 326 and modified its accounting policy for the assessment of available for sale debt securities for impairment, as further described 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 in other assets in the Consolidated Balance Sheets. The Corporation also excludes accrued interest from the estimate of credit losses on debt securities. 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 as of December 31, 2020 and December 31, 2019 and, therefore there was no accrued interest related to debt securities reversed against interest income for 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 of 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 utilized a zero credit loss estimate 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 these 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 uncollectability of an available for sale debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Prior to January 1, 2020, the accounting policy on the assessment of available for sale debt securities for impairment was based on an other-than-temporary assessment. When the fair value of an investment security was less than its amortized cost basis, the Corporation assessed whether the decline in value was other-than-temporary. The Corporation considered whether evidence indicating the cost of the investment was recoverable outweighed evidence to the contrary. Evidence considered in this assessment included the reasons for impairment, the severity and duration of the impairment, changes in the value subsequent to the reporting date, forecasted performance of the issuer, changes in the dividend or interest payment practices of the issuer, changes in the credit rating of the issuer or the specific security, and the general market conditions in the geographic area or industry of the issuer. In determining whether an other-than-temporary impairment had occurred for debt securities, the Corporation compared the present value of cash flows expected to be collected from the security with the amortized cost of the security. If the present value of expected cash flows was less than the amortized cost of the security, then the entire amortized cost of the security would not be recoverable; that is, a credit loss and an other-than-temporary impairment would have occurred. The credit loss component of an other-than-temporary impairment write-down for debt securities would have been recorded in earnings while the remaining portion of the impairment loss would have been recognized, net of tax, in other comprehensive income provided that the Corporation did not intend to sell the underlying debt security and it was more-likely-than-not that the Corporation would not have to sell the debt security prior to recovery of the unrealized loss. If the Corporation intended to sell any securities with an unrealized loss or it was more-likely-than-not that the Corporation would have to sell the investment securities before recovery of their amortized cost basis, then the entire unrealized loss would have been recorded in earnings. Federal Home Loan Bank Stock The Bank is a member of the FHLB. The FHLB is a cooperative that provides services, including funding in the form of advances, to its member banking institutions. As a requirement of membership, the Bank must own a minimum amount of FHLB stock, calculated periodically based primarily on its level of borrowings from the FHLB. No market exists for shares of FHLB stock and therefore, it is carried at cost. FHLB stock may be redeemed at par value five years following termination of FHLB membership, subject to limitations which may be imposed by the FHLB or its regulator, the Federal Housing Finance Board, to maintain capital adequacy of the FHLB. While the Bank currently has no intentions to terminate its FHLB membership, the ability to redeem its investment in FHLB stock would be subject to the conditions imposed by the FHLB. The Bank monitors its investment to determine if impairment exists. Based on the capital adequacy and the liquidity position of the FHLB, management believes there is no impairment related to the carrying amount of FHLB stock included in the Consolidated Balance Sheet as of December 31, 2020. Mortgage Banking Activities Mortgage Loans Held for Sale Residential mortgage loans originated and intended for sale in the secondary market are classified as held for sale. ASC 825, “Financial Instruments” allows for the irrevocable option to elect fair value accounting for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis that may otherwise not be required to be measured at fair value under other accounting standards. The Corporation has elected the fair value option for mortgage loans held for sale in order to better match changes in fair values of the loans with changes in the fair value of the derivative forward sale commitment contracts used to economically hedge them. Changes in the fair value of mortgage loans held for sale accounted for under the fair value option are included in mortgage banking revenues. Gains and losses on residential loan sales are recognized at the time of sale and are included in mortgage banking revenues. Upfront fees and costs related to mortgage loans held for sale for which the fair value option was elected are recognized in mortgage banking revenues as received / incurred and are not deferred. Commissions received on mortgage loans brokered to various investors are recognized when received and included in mortgage banking revenues. Loan Servicing Rights When mortgage loans held for sale are sold with servicing retained, mortgage servicing right assets are recognized as separate assets. Mortgage servicing rights are originally recorded at fair value. Fair value is based on a valuation model that incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, ancillary income, prepayment speeds, and default rates and losses. Mortgage servicing rights are included in other assets and are amortized as an offset to mortgage banking revenues over the period of estimated net servicing income. Mortgage servicing rights are periodically evaluated for impairment based on their fair value. Impairment is measured on an aggregated basis by stratifying the rights based on homogeneous characteristics such as note rate and loan type. The fair value is estimated based on the present value of expected cash flows, incorporating assumptions for discount rate, prepayment speed and servicing cost. Any impairment is recognized through a valuation allowance and as a reduction to mortgage banking revenues. Loans Portfolio Loans Loans are carried at the principal amount outstanding, adjusted by partial charge-offs and net of unamortized deferred loan origination fees and costs. Interest income is accrued on a level yield basis based upon principal amounts outstanding, except for loans on nonaccrual status. Deferred loan origination fees and costs are amortized as an adjustment to yield over the term of the related loans. For purchased loans, which did not show signs of credit deterioration at the time of purchase, interest income is also accrued on a level yield basis based upon principal amounts outstanding and is then further adjusted by accretion of any discount or amortization of any premium associated with the loans. Nonaccrual Loans Loans, with the exception of certain well-secured loans that are in the process of collection, are placed on nonaccrual status and interest recognition is suspended when such loans are 90 days or more overdue with respect to principal and/or interest, or sooner if considered appropriate by management. Well-secured loans are permitted to remain on accrual status provided that full collection of principal and interest is assured and the loan is in the process of collection. Loans are also placed on nonaccrual status when, in the opinion of management, full collection of principal and interest is doubtful. 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. Troubled Debt Restructured Loans A loan that has been modified or renewed is considered to be a troubled debt restructuring (“TDR”) 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. TDRs are classified as accruing or non-accruing based on management’s assessment of the collectability of the loan. Loans that 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. TDRs are reported as such for at least one year from the date of the restructuring. In years after the restructuring, TDRs 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 Corporation has elected to account for eligible loan modifications under Section 4013 of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), as amended by the Coronavirus Response and Relief Supplemental Appropriations Act (the “CRRSA Act”). To be eligible, 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) January 1, 2022. Eligible loan modifications are not required to be classified as TDRs and are not reported as past due provided that they are performing in accordance with the modified terms. Interest income will continue to be recognized unless the loan is placed on nonaccrual status in accordance with the nonaccrual loans accounting policy. Individually Analyzed Loans and Impaired Loans Individually analyzed loans / impaired loans are individually assessed for credit impairment. With the adoption of ASC 326 effective January 1, 2020, individually analyzed loans include nonaccrual commercial loans, reasonably expected TDRs, executed TDRs, and certain other loans based on the underlying risk characteristics and the discretion of management to individually analyze such loans. A TDR 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. Prior to January 1, 2020, impaired loans included nonaccrual loans and executed TDRs. Allowance for Credit Losses on Loans The ACL on loans is increased through a provision for credit losses recognized in the 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. Effective January 1, 2020, the Corporation adopted the provisions of ASC 326 and modified its accounting policy for the ACL on loans, as further described below. The Corporation has made an accounting policy election to exclude accrued interest from the amortized cost basis of loans and reports accrued interest in other assets in the Consolidated Balance Sheets. The Corporation also excludes accrued interest from the estimate of credit losses on loans. The ACL on loans is management’s estimate of expected credit losses over the expected life of the loans at the reporting date. 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 loans), commercial and industrial (including PPP loans), residential real estate (including homeowner construction), home equity and other consumer loans. The second component involves identifying 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, reasonably expected TDRs and executed TDRs, as well as 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 DCF 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 TDRs, 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 DCF methodology to estimate credit losses over the expected life of the loan. The life of the loan excludes expected extensions, renewals 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 TDR 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 has been placed on nonaccrual status, the loan has been modified in a TDR 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 credit 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, 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. Prior to January 1, 2020, the allowance for loan losses was based on an incurred loss methodology and represented management’s estimate of the risk of loss inherent in the loan portfolio as of the balance sheet date. The level of the allowance was based on management’s ongoing review of the growth and composition of the loan portfolio, historical loss experience, estimated loss emergence period (the period from the event that triggers the eventual default until the actual loss was recognized with a charge-off), economic conditions, analysis of asset quality and credit quality levels and trends, the performance of individual loans in relation to contract terms and other pertinent factors. A methodology was used to systematically measure the amount of estimated loan loss exposure inherent in the loan portfolio for the purposes of establishing a sufficient allowance for loan losses. The methodology included: (1) the identification of loss allocations for individual loans deemed to be impaired and (2) the application of loss allocation factors for non-impaired loans based on historical loss experience and estimated loss emergence period, with adjustments for various exposures that management believed were not adequately represented by historical loss experience. Loss allocations for loans deemed to be impaired were 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 was collateral dependent, at the fair value of the collateral. For loans that were collectively evaluated, loss allocation factors were derived by analyzing historical loss experience by loan segment over an established look-back period deemed to be relevant to the inherent risk of loss in the portfolios. Loans were segmented by loan type, collateral type, delinquency status and loan risk rating, where applicable. These loss allocation factors were adjusted to reflect the loss emergence period. These amounts were supplemented by certain qualitative risk factors reflecting management’s view of how losses may vary from those represented by historical loss rates. The qualitative risk factors were the same as those considered under the ASC 326 accounting policy described above. Allowance for Credit Losses on Unfunded Commitments The Corporation adopted the provisions of ASC 326 effective January 1, 2020 and modified its accounting policy for the ACL on unfunded commitments. 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 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 Consolidated Balance Sheets. The ACL on unfunded commitments is adjusted through a provision for credit losses recognized in the Consolidated Statements of Income. Premises and Equipment Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation. Depreciation for financial reporting purposes is calculated on the straight-line method over the estimated useful lives of assets. Leasehold improvements are depreciated over the shorter of the expected lease terms or the estimated useful lives of the improvements. Expected lease terms include lease renewal options to the extent that the exercise of such renewals is reasonably assured. Expenditures for major additions and improvements are capitalized while the costs of current maintenance and repairs are charged to operating expenses. The estimated useful lives of premises and improvements range from 5 to 40 years. For furniture, fixtures and equipment, the estimated useful lives range from 3 to 20 years. Leases The Corporation has committed to rent premises used in business oper |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Accounting Standards Adopted in 2020 Financial Instruments - Credit Losses - ASC 326 ASU 2016-13 was issued in June 2016 and 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, ASC 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 ASC 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 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. Upon adoption of ASC 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 elected the five-year phase-in option, provided by regulatory guidance issued by the Federal Deposit Insurance Corporation (the “FDIC”) in March 2020, which delays the estimated impact of ASC 326 on regulatory capital for the first two years and then phases it in over a three-year period beginning in 2022. See Note 13 for additional disclosure on regulatory capital. Fair Value Measurement - ASC 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. Compensation - Retirement Benefits - ASC 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 Corporation adopted the provisions of ASU 2018-13 effective December 31, 2020 and the adoption did not have a material impact on the Corporation’s consolidated financial statements. Intangibles - Goodwill and Other - Internal-Use Software - ASC 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 provisions of ASU 2018-15 prospectively, as permitted, and the adoption did not have a material impact on the Corporation’s consolidated financial statements. Reference Rate Reform - ASC 848 Accounting Standards Update No. 2020-04, “Reference Rate Reform - 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 certain contracts, including loan and debt agreements, 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 discontinued 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. ASU 2020-04 also provides numerous optional expedients for hedge accounting. ASU 2020-04 is effective as of March 12, 2020, and applies to contract modifications and amendments made as of the beginning of the reporting period that includes or is subsequent to March 12, 2020, and applies through December 31, 2022. In addition, ASU 2021-01, “Reference Rate Reform - Scope (“ASU 2021-01”), was issued in January 2021 to clarify certain optional expedients in ASC 848 related to contract modifications associated with derivatives hedge accounting. The clarifications specify that the expedients apply to derivative instruments that use an interest rate for margining, discounting or contract price alignment that is modified as a result of reference rate reform. ASU 2021-01 is effective immediately for all entities and the provisions can be applied to contract modification retrospectively as of March 12, 2020 or on a prospective basis to new modifications through December 31, 2022, the end of the effective period of this ASU. The optional expedients in both ASU 2020-04 and ASU 2021-01 cannot be applied to contract modifications within the scope of ASC 848 that are made after December 31, 2022. Effective October 1, 2020, the Corporation adopted the provisions of these ASUs on a prospective basis for all eligible contract modifications. The adoption did not have a material impact on the Corporation’s consolidated financial statements. Accounting Standards Pending Adoption Income Taxes - ASC 745 Accounting Standards Update No. 2019-12, “Income Taxes - 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. Receivables - ASC 310 Accounting Standards Update No. 2020-08, “Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable Fees and Other Costs” (“ASU 2020-08”), was issued in October 2020 to provide further clarification and update the previously issued guidance in ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20: Premium Amortization on Purchased Callable Debt Securities” (“ASU 2017-08”). ASU 2017-08 shortened the amortization period for certain callable debt securities purchased at a premium by requiring that the premium be amortized to the earliest call date. The Corporation early adopted the provisions of ASU 2017-08, effective January 1, 2017. ASU 2020-08 requires that at each reporting period, to the extent that the amortized cost of an individual callable debt security exceeds the amount repayable by the issuer at the next call date, the excess premium shall be amortized to the next call date. ASU 2020-08 is effective for fiscal years ending after December 15, 2020 and early adoption is not permitted. The provisions under ASU 2020-08 are required to be applied prospectively. The adoption of ASU 2020-08 is not expected to have a material impact on the Corporation’s consolidated financial statements. |
Cash and Due from Banks
Cash and Due from Banks | 12 Months Ended |
Dec. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Due from Banks | Cash and Due from Banks Cash and due from banks includes cash on hand, cash items in process of collection, cash on deposit at the Federal Reserve Bank of Boston (“FRB”) and other correspondent banks and cash pledged to derivative counterparties. 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 requirements. At December 31, 2019, the reserve balance was $27.9 million and was included in cash and due from banks in the Consolidated Balance Sheets. As of December 31, 2020 and 2019, cash and due from banks included interest-bearing deposits in other banks of $138.4 million and $83.4 million, respectively. See Note 14 for additional disclosure regarding cash collateral pledged to derivative counterparties. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities Adoption of ASC 326 Effective January 1, 2020, the Corporation adopted the provisions of ASC 326 using the modified retrospective method. Therefore, prior period comparative information has not been adjusted and continues to be reported under the GAAP in effect prior to the adoption of ASC 326. There was no ACL on available for sale debt securities recognized upon the adoption of ASC 326. 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) December 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 $131,186 $628 ($145) $— $131,669 Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 725,890 14,942 (527) — 740,305 Individual name issuer trust preferred debt securities 13,341 — (672) — 12,669 Corporate bonds 11,153 — (1,225) — 9,928 Total available for sale debt securities $881,570 $15,570 ($2,569) $— $894,571 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 Accrued interest receivable on available for sale debt securities totaled $2.4 million and $2.9 million, respectively, as of December 31, 2020 and 2019. At December 31, 2020 and 2019, securities with a fair value of $291.9 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 12 for additional discussion of 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 December 31, 2020 Amortized Cost Fair Value Due in one year or less $128,971 $131,519 Due after one year to five years 350,859 357,148 Due after five years to ten years 277,148 279,859 Due after ten years 124,592 126,045 Total securities $881,570 $894,571 Included in the above table are debt securities with an amortized cost balance of $154.4 million and a fair value of $152.9 million at December 31, 2020 that are callable at the discretion of the issuers. Final maturities of the callable securities range from 3 years to 16 years, with call features ranging from 1 month to 2 years. The following table summarizes amounts relating to sales of securities: (Dollars in thousands) For the periods ended December 31, 2020 2019 2018 Proceeds from sales $— $11,877 $— Gross realized gains $— $— $— Gross realized losses — (53) — Net realized losses on securities $— ($53) $— 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. 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, 2020 # Fair Unrealized # Fair Unrealized # Fair Unrealized Obligations of U.S. government-sponsored enterprises 6 $63,856 ($145) — $— $— 6 $63,856 ($145) Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 16 107,283 (527) — — — 16 107,283 (527) Individual name issuer trust preferred debt securities — — — 5 12,669 (672) 5 12,669 (672) Corporate bonds — — — 3 9,928 (1,225) 3 9,928 (1,225) Total temporarily impaired securities 22 $171,139 ($672) 8 $22,597 ($1,897) 30 $193,736 ($2,569) (Dollars in thousands) Less than 12 Months 12 Months or Longer Total December 31, 2019 # Fair Unrealized # Fair Unrealized # Fair Unrealized 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 temporarily impaired securities 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 December 31, 2020. Management believes that the unrealized losses on these debt securities 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 ACL on securities was recorded at December 31, 2020. Individual Name Issuer Trust Preferred Debt Securities Included in debt securities in an unrealized loss position at December 31, 2020 were five trust preferred securities issued by four individual companies in the banking sector. 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. Management reviewed the collectability of these securities taking into consideration such factors as the financial condition of the issuers, reported regulatory capital ratios of the issuers, credit ratings, including ratings in effect as of the reporting period date as well as credit rating changes between the reporting period date and the filing date of this report, and other information. As of December 31, 2020, there were two individual name issuer trust preferred debt securities with an amortized cost of $4.0 million and unrealized losses of $266 thousand that were rated below investment grade by Standard & Poors, Inc. (“S&P”). We noted no additional downgrades to below investment grade between December 31, 2020 and the filing date of this report. Management believes the unrealized losses on these debt securities are primarily attributable to changes in the investment spreads and interest rates and not material 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 ACL on securities was recorded at December 31, 2020. Corporate Bonds At December 31, 2020, the Corporation had three corporate bond holdings with unrealized losses totaling $1.2 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 December 31, 2020. Management reviewed the collectability of these securities taking into consideration such factors as the financial condition of the issuers, reported regulatory capital ratios of the issuers, credit ratings, including ratings in effect as of the reporting period date as well as credit rating changes between the reporting period date and the filing date of this report, and other information. Management believes the unrealized losses on these debt securities 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 ACL on securities was recorded at December 31, 2020. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Loans | Loans The following is a summary of loans: (Dollars in thousands) December 31, 2020 2019 Commercial: Commercial real estate (1) $1,633,024 $1,547,572 Commercial & industrial (2) 817,408 585,289 Total commercial 2,450,432 2,132,861 Residential Real Estate: Residential real estate (3) 1,467,312 1,449,090 Consumer: Home equity 259,185 290,874 Other (4) 19,061 20,174 Total consumer 278,246 311,048 Total loans (5) $4,195,990 $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 & industrial (“C&I”) consists of loans to businesses and individuals, a portion of which are fully or partially collateralized by real estate. C&I also includes $199.8 million of PPP loans as of December 31, 2020. (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 $1.5 million and $5.3 million, respectively, at December 31, 2020 and 2019 and net unamortized premiums on purchased loans of $787 thousand and $995 thousand, respectively, at December 31, 2020 and 2019. Accrued interest receivable on loans totaled $11.3 million and $11.0 million, respectively, as of December 31, 2020 and December 31, 2019. As of both December 31, 2020 and 2019, loans amounting to $2.1 billion were pledged as collateral to the FHLB under a blanket pledge agreement and to the FRB for the discount window. See Note 12 for additional disclosure regarding borrowings. As disclosed in Note 1, the Corporation has elected to account for eligible loan modifications under Section 4013 of the CARES Act, as amended by the CRRSA Act. Eligible loan modifications are not required to be classified as TDRs and are not reported as past due provided that they are performing in accordance with the modified terms. Interest income will continue to be recognized unless the loan is placed on nonaccrual status in accordance with the nonaccrual loans accounting policy disclosed in Note 1. In 2020, we executed loan payment deferment modifications on 636 loans totaling $717.4 million. The majority of these modifications qualified as eligible loan modifications under Section 4013 of the CARES Act, as amended, and therefore, were not required to be classified as TDRs and were not reported as past due. See additional disclosure regarding TDRs below. As of December 31, 2020, Washington Trust has active loan payment deferment modifications on 136 loans totaling $244.7 million. 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 aging analysis of past due loans, segregated by class of loans: (Dollars in thousands) Days Past Due December 31, 2020 30-59 60-89 Over 90 Total Past Due Current Total Loans Commercial: Commercial real estate $265 $— $— $265 $1,632,759 $1,633,024 Commercial & industrial 1 2 — 3 817,405 817,408 Total commercial 266 2 — 268 2,450,164 2,450,432 Residential Real Estate: Residential real estate 4,466 701 5,172 10,339 1,456,973 1,467,312 Consumer: Home equity 894 129 644 1,667 257,518 259,185 Other 23 7 88 118 18,943 19,061 Total consumer 917 136 732 1,785 276,461 278,246 Total loans $5,649 $839 $5,904 $12,392 $4,183,598 $4,195,990 (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 December 31, 2020 and 2019, were nonaccrual loans of $8.5 million and $11.5 million, respectively. All loans 90 days or more past due at December 31, 2020 and 2019 were classified as nonaccrual. Nonaccrual Loans The following is a summary of nonaccrual loans, segregated by class of loans: (Dollars in thousands) December 31, 2020 2019 Commercial: Commercial real estate $— $603 Commercial & industrial — 657 Total commercial — 1,260 Residential Real Estate: Residential real estate 11,981 14,297 Consumer: Home equity 1,128 1,763 Other 88 88 Total consumer 1,216 1,851 Total nonaccrual loans $13,197 $17,408 Accruing loans 90 days or more past due $— $— For nonaccrual loans with a carrying value of $3.0 million as of December 31, 2020, no ACL was deemed necessary. As of December 31, 2020 and December 31, 2019, nonaccrual loans secured by one- to four-family residential property amounting to $3.4 million and $5.8 million, respectively, were in process of foreclosure. Nonaccrual loans of $4.7 million and $5.9 million, respectively, were current as to the payment of principal and interest at December 31, 2020 and December 31, 2019. There were no significant commitments to lend additional funds to borrowers whose loans were on nonaccrual status at December 31, 2020. The following table presents interest income recognized on nonaccrual loans segregated by loan class: (Dollars in thousands) Interest Income Recognized Year ended December 31, 2020 Commercial: Commercial real estate $— Commercial & industrial 2 Total commercial 2 Residential Real Estate: Residential real estate 379 Consumer: Home equity 35 Other — Total consumer 35 Total $416 Troubled Debt Restructurings The recorded investment in TDRs consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs. For accruing TDRs, the recorded investment also includes accrued interest. The following table presents the recorded investment in TDRs and certain other information related to TDRs: (Dollars in thousands) December 31, 2020 2019 Accruing TDRs $13,418 $377 Nonaccrual TDRs 2,345 492 Total TDRs $15,763 $869 Specific reserves on TDRs included in the ACL on loans $159 $97 Additional commitments to lend to borrowers with TDRs $— $— The following table presents loans modified as a TDR: (Dollars in thousands) Outstanding Recorded Investment # of Loans Pre-Modifications Post-Modifications Years ended December 31, 2020 2019 2020 2019 2020 2019 Commercial: Commercial real estate 3 — $1,798 $— $1,798 $— Commercial & industrial 5 — 6,844 — 6,844 — Total commercial 8 — 8,642 — 8,642 — Residential Real Estate: Residential real estate 11 — 5,943 — 5,943 — Consumer: Home equity 4 — 873 — 873 — Other — — — — — — Total consumer 4 — $873 $— $873 $— Total 23 — $15,458 $— $15,458 $— The following table presents information on how loans were modified as a TDR: (Dollars in thousands) Years ended December 31, 2020 2019 Below-market interest rate concession $— $— Payment deferral 7,704 — Maturity / amortization concession — — Interest only payments 6,384 — Combination (1) 1,370 — Total $15,458 $— (1) Loans included in this classification were modified with a combination of any two of the concessions listed in this table. The following table presents information on TDRs modified within the previous 12 months for which there was a payment default: (Dollars in thousands) # of Loans Recorded Investment Years ended December 31, 2020 2019 2020 2019 Commercial: Commercial real estate 1 — $850 $— Commercial & industrial — — — — Residential real estate: Residential real estate 2 — 1,299 — Consumer: Home equity 2 — 118 — Other — — — — Total 5 — $2,267 $— Individually Analyzed Loans Effective January 1, 2020, individually analyzed loans include nonaccrual commercial loans, reasonably expected TDRs, executed TDRs, and certain other loans based on the underlying risk characteristics and the discretion of management to individually analyze such loans. As of December 31, 2020, the carrying value of individually analyzed loans amounted to $18.3 million, of which $8.4 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. The following table presents the carrying value of collateral dependent individually analyzed loans as of December 31, 2020: (Dollars in thousands) Carrying Value Related Allowance Commercial: Commercial real estate (1) $1,792 $— Commercial & industrial (2) 451 — Total commercial 2,243 — Residential Real Estate: Residential real estate (3) 5,947 38 Consumer: Home equity (3) 254 183 Other — — Total consumer 254 183 Total $8,444 $221 (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, impaired loans individually analyzed for impairment included nonaccrual loans and executed TDRs. The following is a summary of impaired loans as of December 31, 2019: (Dollars in thousands) Recorded Investment (1) Unpaid Principal Related Allowance No Related Allowance Recorded 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 (TDRs for which management has concluded that the collectability of the loan is not in doubt), the recorded investment also includes accrued interest. As required under the GAAP in effect prior to the adoption of ASC 326, the following table presents the average recorded investment balance of impaired loans and interest income recognized on impaired loans segregated by loan class: (Dollars in thousands) Average Recorded Investment Interest Income Recognized Years ended December 31, 2019 2018 2019 2018 Commercial: Commercial real estate $864 $1,050 $1 $— Commercial & industrial 2,149 5,403 106 259 Total commercial 3,013 6,453 107 259 Residential real estate: Residential real estate 11,575 9,645 473 393 Consumer: Home equity 1,466 1,182 58 52 Other 68 69 2 5 Total consumer 1,534 1,251 60 57 Totals $16,122 $17,349 $640 $709 Credit Quality Indicators Commercial The Corporation utilizes an internal rating system to assign a risk to each of its commercial loans. Loans are rated on a scale of 1 to 10. This scale can be assigned to three broad categories including “pass” for ratings 1 through 6, “special mention” for 7-rated loans, and “classified” for loans rated 8, 9 or 10. The loan rating system takes into consideration parameters including the borrower’s financial condition, the borrower’s performance with respect to loan terms, the adequacy of collateral, the adequacy of guarantees and other credit quality characteristics. For non-impaired loans, the Corporation takes the risk rating into consideration along with other credit attributes in the establishment of an appropriate allowance for loan losses. See Note 6 for additional information. A description of the commercial loan categories is as follows: Pass - Loans with acceptable credit quality, defined as ranging from superior or very strong to a status of lesser stature. Superior or very strong credit quality is characterized by a high degree of cash collateralization or strong balance sheet liquidity. Lesser stature loans have an acceptable level of credit quality, but may exhibit some weakness in various credit metrics such as collateral adequacy, cash flow, performance or may be in an industry or of a loan type known to have a higher degree of risk. These weaknesses may be mitigated by secondary sources of repayment, including SBA guarantees. 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 leveraged 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 credit 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. In addition, other techniques are utilized to monitor indicators of credit deterioration in the residential real estate loans and home equity consumer loans. Among these techniques is the periodic tracking of loans with an updated Fair Isaac Corporation (“FICO”) score and an estimated loan to value (“LTV”) ratio. LTV is estimated based on such factors as the location, the original LTV ratio, and the date of origination of the loan and do not reflect actual appraisal amounts. The results of these analyses and other credit review procedures, including selected targeted internal reviews, are taken into consideration in the determination of qualitative loss factors for residential real estate and home equity consumer credits. The following table summarizes the Corporation’s loan portfolio by credit quality indicator and loan portfolio segment as of December 31, 2020: (Dollars in thousands) Term Loans Amortized Cost by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Revolving Loans Converted to Term Loans Total Commercial: CRE: Pass $283,341 $353,875 $260,917 $236,310 $136,490 $249,359 $10,333 $2,386 $1,533,011 Special Mention 756 20,235 39,387 16,222 11,318 10,367 771 — 99,056 Classified 957 — — — — — — — 957 Total CRE 285,054 374,110 300,304 252,532 147,808 259,726 11,104 2,386 1,633,024 C&I: Pass 293,493 95,775 98,146 56,792 44,445 91,128 95,817 1,296 776,892 Special Mention 1,123 722 3,210 6,839 3,141 14,853 3,806 56 33,750 Classified 403 — — — — 6,363 — — 6,766 Total C&I 295,019 96,497 101,356 63,631 47,586 112,344 99,623 1,352 817,408 Residential Real Estate: Residential real estate: Current 463,477 253,228 146,839 155,976 128,139 309,314 — — 1,456,973 Past Due 238 1,698 1,310 886 110 6,097 — — 10,339 Total residential real estate 463,715 254,926 148,149 156,862 128,249 315,411 — — 1,467,312 Consumer: Home equity: Current 9,838 6,771 3,898 1,474 1,217 3,955 219,085 11,280 257,518 Past Due — 35 24 — — 186 310 1,112 1,667 Total home equity 9,838 6,806 3,922 1,474 1,217 4,141 219,395 12,392 259,185 Other: Current 5,214 2,241 1,237 1,544 548 7,850 308 1 18,943 Past Due 19 1 — — 88 7 3 — 118 Total other 5,233 2,242 1,237 1,544 636 7,857 311 1 19,061 Total Loans $1,058,859 $734,581 $554,968 $476,043 $325,496 $699,479 $330,433 $16,131 $4,195,990 Consistent with industry practice, Washington Trust may renew commercial loans at or immediately prior to their maturity. In the table above, renewals subject to full credit evaluation before being granted are reported as originations in the period renewed. As required under the GAAP in effect prior to the adoption of ASC 326, the following table presents the commercial loan portfolio, segregated by category of credit quality indicator as of December 31, 2019: (Dollars in thousands) 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 As required under the GAAP in effect prior to the adoption of ASC 326, the following table presents the residential and consumer loan portfolios, segregated by category of credit quality indicator as of December 31, 2019: (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 Loan Servicing Activities Loans sold with servicing retained result in the capitalization of loan servicing rights. The following table presents an analysis of loan servicing rights: (Dollars in thousands) Loan Servicing Valuation Total Balance at December 31, 2017 $3,613 $— $3,613 Loan servicing rights capitalized 905 — 905 Amortization (867) — (867) Balance at December 31, 2018 3,651 — 3,651 Loan servicing rights capitalized 902 — 902 Amortization (1,027) — (1,027) Balance at December 31, 2019 3,526 — 3,526 Loan servicing rights capitalized 6,569 — 6,569 Amortization (2,507) — (2,507) Increase in impairment reserve — (154) (154) Balance at December 31, 2020 $7,588 ($154) $7,434 The following table presents estimated aggregate amortization expense related to loan servicing assets: (Dollars in thousands) Years ending December 31: 2021 $2,407 2022 1,644 2023 1,122 2024 766 2025 523 2026 and thereafter 1,126 Total estimated amortization expense $7,588 Loans sold to others are serviced by the Corporation on a fee basis under various agreements. Loans serviced for others are not included in the Consolidated Balance Sheets. The following table presents the balance of loans serviced for others by loan portfolio: (Dollars in thousands) December 31, 2020 2019 Residential real estate $1,231,201 $586,996 Commercial 155,935 159,948 Total $1,387,136 $746,944 |
Allowance for Credit Losses on
Allowance for Credit Losses on Loans | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Allowance for Credit Losses on Loans | Allowance for Credit Losses on Loans Adoption of ASC 326 Effective January 1, 2020, the Corporation adopted the provisions of ASC 326 using the modified retrospective method. Therefore, prior period comparative information has not been adjusted and continues to be reported under the GAAP in effect prior to the adoption of ASC 326. As a result of adopting ASC 326, the Corporation increased the ACL on loans by $6.5 million on January 1, 2020. The following table presents the activity in the ACL on loans for the year ended December 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 ASC 326 3,405 3,029 6,434 221 (106) (48) (154) 6,501 Charge-offs (356) (586) (942) (99) (224) (52) (276) (1,317) Recoveries 51 24 75 20 52 25 77 172 Provision 4,224 5,840 10,064 1,285 188 199 387 11,736 Ending Balance $22,065 $12,228 $34,293 $8,042 $1,300 $471 $1,771 $44,106 The following table presents the activity in the allowance for loan losses for the year ended December 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 (1,028) (21) (1,049) (486) (390) (95) (485) (2,020) Recoveries 125 168 293 — 72 22 94 387 Provision 263 (2,073) (1,810) 3,114 105 166 271 1,575 Ending Balance $14,741 $3,921 $18,662 $6,615 $1,390 $347 $1,737 $27,014 The following table presents the activity in the allowance for loan losses for the year ended December 31, 2018: (Dollars in thousands) Commercial Consumer CRE C&I Total Commercial Residential Real Estate Home Equity Other Total Consumer Total Beginning Balance $12,729 $5,580 $18,309 $5,427 $2,412 $340 $2,752 $26,488 Charge-offs (627) (10) (637) (250) (193) (107) (300) (1,187) Recoveries 25 119 144 21 29 27 56 221 Provision 3,254 158 3,412 (1,211) (645) (6) (651) 1,550 Ending Balance $15,381 $5,847 $21,228 $3,987 $1,603 $254 $1,857 $27,072 As required under the GAAP in effect prior to the adoption of ASC 326, the following table presents the Corporation’s loan portfolio and associated allowance for loan losses by portfolio segment and by impairment methodology as of December 31, 2019: (Dollars in thousands) Loans Related Loans Individually Evaluated for Impairment 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 Impairment 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 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment The following presents a summary of premises and equipment: (Dollars in thousands) December 31, 2020 2019 Land $5,921 $5,921 Premises and improvements 42,510 40,982 Furniture, fixtures and equipment 24,969 24,760 Total premises and equipment 73,400 71,663 Less: accumulated depreciation 44,530 42,963 Total premises and equipment, net $28,870 $28,700 Depreciation of premises and equipment amounted to $3.2 million, $3.3 million and $3.3 million, respectively, for the years ended December 31, 2020, 2019, and 2018. |
Leases
Leases | 12 Months Ended |
Dec. 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. Operating lease ROU assets amounted to $29.5 million and $26.8 million, respectively, as of December 31, 2020 and 2019. Operating lease liabilities totaled $31.7 million and $28.9 million, respectively, as of December 31, 2020 and 2019. As of December 31, 2020, there were no operating leases that had not yet commenced, compared to one operating lease that had not yet commenced as of December 31, 2019. Rental expense for operating leases is recognized on a straight-line basis over the lease term and amounted to $4.0 million, $3.8 million and $3.7 million, respectively, for the years ended December 31, 2020, 2019 and 2018. 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 the Corporation’s operating leases: At December 31, 2020 2019 Weighted average discount rate 3.34 % 3.67 % Range of lease expiration dates 7 months - 20 years 4 months - 21 years Range of lease renewal options 1 year - 5 years 1 year - 5 years Weighted average remaining lease term 13.4 years 14.0 years The following table presents the undiscounted annual lease payments under the terms of the Corporation’s operating leases at December 31, 2020, including a reconciliation to the present value of operating lease liabilities recognized in the Consolidated Balance Sheets: (Dollars in thousands) Years ending December 31: 2021 $3,922 2022 3,890 2023 3,830 2024 3,618 2025 2,879 2026 and thereafter 22,046 Total operating lease payments (1) 40,185 Less: interest 8,468 Present value of operating lease liabilities (2) $31,717 (1) Includes $2.1 million related to options to extend lease terms that are reasonably certain of being exercised. (2) Includes short-term operating lease liabilities of $2.9 million. The following table presents the components of total lease expense and operating cash flows: (Dollars in thousands) Year ended December 31, 2020 2019 Lease Expense: Operating lease expense $3,921 $3,724 Variable lease expense 56 49 Total lease expense (1) $3,977 $3,773 Cash Paid: Cash paid reducing operating lease liabilities $3,791 $3,586 (1) Included in net occupancy expenses in the Consolidated Income Statement. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table presents the carrying value of goodwill at the reporting unit (or business segment) level: (Dollars in thousands) December 31, 2020 2019 Commercial Banking Segment $22,591 $22,591 Wealth Management Services Segment 41,318 41,318 Total goodwill $63,909 $63,909 The balance of goodwill in the Commercial Banking segment arose from the acquisition of First Financial Corp. in 2002. The balance of goodwill in the Wealth Management Services segment arose from the 2005 acquisition of Weston Financial and the 2015 acquisition of Halsey. The following table presents the components of intangible assets: (Dollars in thousands) December 31, 2020 2019 Gross carrying amount $20,803 $20,803 Accumulated amortization 14,498 13,585 Net amount $6,305 $7,218 The balance of intangible assets at December 31, 2020 includes wealth management advisory contracts resulting from the 2005 acquisition of Weston Financial and the 2015 acquisition of Halsey. The wealth management advisory contracts resulting from the Weston Financial acquisition are being amortized over a 20-year life using a declining balance method, based on expected attrition for the current customer base derived from historical runoff data. The wealth management advisory contracts resulting from the acquisition of Halsey are being amortized on a straight-line basis over a 15-year life. Amortization expense for the years ended December 31, 2020, 2019, and 2018, amounted to $914 thousand, $943 thousand and $979 thousand, respectively. The following table presents estimated annual amortization expense for intangible assets at December 31, 2020: (Dollars in thousands) Years ending December 31, 2021 $890 2022 860 2023 843 2024 826 2025 702 2026 and thereafter 2,184 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table presents the components of income tax expense: (Dollars in thousands) Years ended December 31, 2020 2019 2018 Current Tax Expense: Federal $19,248 $17,298 $15,460 State 3,213 3,254 2,863 Total current tax expense 22,461 20,552 18,323 Deferred Tax (Benefit) Expense: Federal (2,375) (1,294) 63 State (755) (197) (126) Total deferred tax (benefit) expense (3,130) (1,491) (63) Total income tax expense $19,331 $19,061 $18,260 Total income tax expense varies from the amount determined by applying the Federal income tax rate to income before income taxes. The following table presents the reasons for the differences: Years ended December 31, 2020 2019 2018 (Dollars in thousands) Amount Rate Amount Rate Amount Rate Tax expense at Federal statutory rate $18,724 21.0 % $18,518 21.0 % $18,205 21.0 % Increase (decrease) in taxes resulting from: State income tax expense, net of federal tax benefit 1,995 2.2 2,417 2.7 2,162 2.5 Tax-exempt income, net (803) (0.9) (814) (0.9) (809) (0.9) BOLI (523) (0.6) (494) (0.6) (461) (0.5) Investment in low-income housing limited partnership (118) (0.1) — — — — Federal tax credits (93) (0.1) (364) (0.4) (364) (0.4) Dividends received deduction (28) — (36) — (45) (0.1) Change in fair value of contingent consideration — — — — (39) (0.1) Share-based compensation 92 0.1 (221) (0.3) (444) (0.5) Other 85 0.1 55 0.1 55 0.1 Total income tax expense $19,331 21.7 % $19,061 21.6 % $18,260 21.1 % The following table presents the approximate tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities: (Dollars in thousands) December 31, 2020 2019 Deferred Tax Assets: Allowance for credit losses on loans $10,585 $6,348 Operating lease liabilities 7,612 6,782 Deferred compensation 4,646 4,200 Deferred loan origination fees 2,654 1,505 Defined benefit pension obligations 2,576 1,361 Share-based compensation 1,825 1,358 Other 2,583 2,031 Deferred tax assets 32,481 23,585 Deferred Tax Liabilities: Operating lease right-of-use assets (7,085) (6,296) Deferred loan origination costs (4,321) (4,084) Net unrealized gains on available for sale debt securities (3,120) (991) Loan servicing rights (1,784) (829) Amortization of intangibles (1,513) (1,696) Depreciation of premises and equipment (1,215) (669) Other (1,253) (719) Deferred tax liabilities (20,291) (15,284) Net deferred tax asset $12,190 $8,301 The Corporation’s net deferred tax asset is included in other assets in the Consolidated Balance Sheets. Management has determined that a valuation allowance is not required for any of the deferred tax assets since it is more-likely-than-not that these assets will be realized primarily through future reversals of existing taxable temporary differences or by offsetting projected future taxable income. The Corporation had no unrecognized tax benefits as of December 31, 2020 and 2019. The Corporation files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. Generally, the Corporation is no longer subject to U.S. federal income and state tax examinations by tax authorities for years before 2017. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2020 | |
Deposits [Abstract] | |
Deposits | Deposits The following table presents a summary of deposits: (Dollars in thousands) December 31, 2020 2019 Noninterest-bearing demand deposits $832,287 $609,924 Interest-bearing demand deposits 174,290 159,938 NOW accounts 698,706 520,295 Money market accounts 910,167 765,899 Savings accounts 466,507 373,503 Time deposits (1) 1,296,396 1,069,323 Total deposits $4,378,353 $3,498,882 (1) Includes wholesale brokered time deposit balances of $591,541 and $284,842, respectively, as of December 31, 2020 and December 31, 2019. The following table presents scheduled maturities of time certificates of deposit: (Dollars in thousands) Scheduled Maturity Weighted Average Rate Years ending December 31: 2021 $977,912 0.77 % 2022 222,300 1.30 2023 35,026 1.90 2024 18,736 1.64 2025 42,422 1.17 2026 and thereafter — — Balance at December 31, 2020 $1,296,396 0.91 % The following table presents the amount of time certificates of deposit in denominations of $100 thousand or more at December 31, 2020, maturing during the periods indicated: (Dollars in thousands) January 1, 2021 to March 31, 2021 $131,277 April 1, 2021 to June 30, 2021 77,811 July 1, 2021 to December 31, 2021 75,982 January 1, 2022 and beyond 126,977 Balance at December 31, 2020 $412,047 Time certificates of deposit in denominations of $250 thousand or more totaled $134.9 million and $147.3 million, respectively, at December 31, 2020 and 2019. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Federal Home Loan Bank Advances Advances payable to FHLB amounted to $593.9 million and $1.1 billion, respectively, at December 31, 2020 and 2019. The Bank pledges certain qualified investment securities and loans as collateral to the FHLB. As of December 31, 2020 and 2019, the Bank had access to a $40.0 million unused line of credit with the FHLB and also had remaining available borrowing capacity of $969.7 million and $535.0 million, respectively. The following table presents maturities and weighted average interest rates on FHLB advances outstanding as of December 31, 2020: (Dollars in thousands) Scheduled Weighted 2021 $517,222 0.71 % 2022 813 5.12 2023 856 5.12 2024 35,900 2.52 2025 2,751 5.03 2026 and thereafter 36,317 3.13 Total $593,859 1.00 % Advances payable to FHLB include short-term advances with original maturity due dates of one year or less. The following table presents certain information concerning short-term FHLB advances: (Dollars in thousands) As of and for the years ended December 31, 2020 2019 2018 Average amount outstanding during the period $690,366 $718,722 $484,090 Amount outstanding at end of period 354,000 897,000 630,000 Highest month end balance during period 985,500 897,000 630,000 Weighted-average interest rate at end of period 0.39 % 2.06 % 2.67 % Weighted-average interest rate during the period 1.39 2.59 2.23 Junior Subordinated Debentures Junior subordinated debentures amounted to $22.7 million at December 31, 2020 and 2019. The Bancorp sponsored the creation of WT Capital Trust I (“Trust I”) and WT Capital Trust II (“Trust II”), Delaware statutory trusts created for the sole purpose of issuing trust preferred securities and investing the proceeds in junior subordinated debentures of the Bancorp. The Bancorp is the owner of all of the common securities of the trusts. In accordance with GAAP, the trusts are treated as unconsolidated subsidiaries. The $8.3 million of junior subordinated debentures associated with Trust I bear interest at a rate equal to the three-month LIBOR rate plus 1.45% and mature on September 15, 2035. The $14.4 million of junior subordinated debentures associated with Trust II bear interest at a rate equal to the three-month LIBOR rate plus 1.45% and mature on November 23, 2035. The debentures may be redeemed at par at the Bancorp’s option, subject to the approval of the applicable banking regulator to the extent required under applicable guidelines or policies. See Note 13 for additional discussion of the regulatory capital treatment of trust preferred securities. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Stock Repurchase Program On December 1, 2020, the Bancorp’s Board of Directors adopted a new Stock Repurchase Program (the “2020 Repurchase Program”). The 2020 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 2020 Repurchase Program expires on October 31, 2021 and may be modified, suspended, or discontinued at any time. As of December 31, 2020, no shares have been repurchased under the 2020 Repurchase Program. The Corporation’s 2019 Stock Repurchase Program (the “2019 Repurchase Program”) authorized the repurchase of up to 850,000 shares, or approximately 5%, of the Corporation’s outstanding common stock. The 2019 Repurchase Program expired October 31, 2020. As of the date of expiration, 124,863 shares had been repurchased under the 2019 Repurchase Program, totaling $4.3 million, at an average price of $34.61. Dividends The primary source of liquidity for the Bancorp is dividends received from the Bank. The Bancorp and the Bank are regulated enterprises and their abilities to pay dividends are subject to regulatory review and restriction. Certain regulatory and statutory restrictions exist regarding dividends, loans, and advances from the Bank to the Bancorp. Generally, the Bank has the ability to pay dividends to the Bancorp subject to minimum regulatory capital requirements. The FDIC and the FRB have the authority to use their enforcement powers to prohibit a bank or bank holding company, respectively, from paying dividends if, in their opinion, the payment of dividends would constitute an unsafe or unsound practice. Dividends paid by the Bank to the Bancorp amounted to $43.1 million and $36.8 million, respectively, for the years ended December 31, 2020 and 2019. Reserved Shares As of December 31, 2020, a total of 1,625,598 common stock shares were reserved for issuance under the 2003 Stock Incentive Plan and the 2013 Stock Option and Incentive Plan. Regulatory Capital Requirements The Bancorp and the Bank are subject to various regulatory capital requirements administered by the FRB and the FDIC, respectively. Regulatory authorities can initiate certain mandatory actions if the Bancorp or the Bank fail to meet minimum capital requirements, which could have a direct material effect on the Corporation’s financial statements. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. These quantitative measures, to ensure capital adequacy, require minimum amounts and ratios. Capital levels at December 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 To Be “Well Capitalized” Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio December 31, 2020 Total Capital (to Risk-Weighted Assets): Corporation $539,496 13.51 % $319,532 8.00 % N/A N/A Bank 534,288 13.38 319,503 8.00 $399,379 10.00 % Tier 1 Capital (to Risk-Weighted Assets): Corporation 503,791 12.61 239,649 6.00 N/A N/A Bank 498,583 12.48 239,627 6.00 319,503 8.00 Common Equity Tier 1 Capital (to Risk-Weighted Assets): Corporation 481,792 12.06 179,737 4.50 N/A N/A Bank 498,583 12.48 179,721 4.50 259,596 6.50 Tier 1 Capital (to Average Assets): (1) Corporation 503,791 8.95 225,209 4.00 N/A N/A Bank 498,583 8.86 225,126 4.00 281,407 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 December 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 December 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. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 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 December 31, 2020, the Bancorp had no interest rate cap contracts. As of December 31, 2019, the Bancorp had two interest rate caps with a total notional amount of $22.7 million that were designated as cash flow hedges to hedge the interest rate risk associated with our variable rate junior subordinated debentures. For both interest rate caps, the Bancorp obtained the right to receive the difference between 3-month LIBOR and a 4.5% strike. During 2020, both of the interest rate cap contracts matured. As of December 31, 2020 and 2019, the Bank had two interest rate swap contracts with a total notional amount of $60.0 million that were designated as cash flow hedges to hedge the interest rate risk associated with short-term variable rate FHLB advances. The interest rate swaps mature in 2021 and 2023. As of December 31, 2020, the Bank had no interest rate floor contracts. As of December 31, 2019, the Bank had three interest rate floor contracts with a total notional amount of $300.0 million. These contracts were designated as cash flow hedges to hedge the interest rate risk associated with a pool of variable rate commercial loans. The Bank obtained the right to receive the difference between 1-month LIBOR and a 1.0% strike for each of the interest rate floors. During 2020, the three interest rate floor contracts matured. 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 December 31, 2020 and 2019, Washington Trust had interest rate swap contracts with commercial loan borrowers with notional amounts of $991.0 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 December 31, 2020, the notional amounts of the risk participation-out agreements and risk participation-in agreements were $61.6 million and $92.7 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 December 31, 2020, the notional amounts of interest rate lock commitments and forward sale commitments were $167.7 million and $279.7 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 Consolidated Balance Sheets: (Dollars in thousands) Derivative Assets Derivative Liabilities Fair Value Fair Value Balance Sheet Location Dec 31, Dec 31, Balance Sheet Location Dec 31, Dec 31, 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 1,958 730 Interest rate floors Other assets — 3 Other liabilities — — Derivatives not Designated as Hedging Instruments: Loan related derivative contracts: Interest rate swaps with customers Other assets 75,804 27,736 Other liabilities 68 358 Mirror swaps with counterparties Other assets 67 351 Other liabilities 76,248 27,819 Risk participation agreements Other assets 22 1 Other liabilities 2 1 Mortgage loan commitments: Interest rate lock commitments Other assets 7,202 1,097 Other liabilities — — Forward sale commitments Other assets — 30 Other liabilities 2,914 827 Gross amounts 83,095 29,218 81,190 29,735 Less: amounts offset ( 1) 67 354 67 354 Derivative balances, net of offset 83,028 28,864 81,123 29,381 Less: collateral pledged (2) — — 74,698 27,105 Net amounts $83,028 $28,864 $6,425 $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 Consolidated Statements of Changes in Shareholders’ Equity and Consolidated Statements of Income: (Dollars in thousands) Gain (Loss) Recognized in Other Comprehensive Income, Net of Tax Years ended December 31, 2020 2019 2018 Derivatives Designated as Cash Flow Hedging Instruments: Interest rate risk management contracts: Interest rate caps $89 $52 $30 Interest rate swaps (893) (1,232) 515 Interest rate floors 150 196 74 Total ($654) ($984) $619 For derivatives designated as cash flow hedging instruments, see Note 20 for additional disclosure pertaining to the amounts and location of reclassifications from accumulated other comprehensive income (loss) into earnings. (Dollars in thousands) Amount of Gain (Loss) Years ended December 31, Statement of Income Location 2020 2019 2018 Derivatives not Designated as Hedging Instruments: Loan related derivative contracts: Interest rate swaps with customers Loan related derivative income $60,938 $29,910 ($290) Mirror swaps with counterparties Loan related derivative income (57,067) (26,043) 2,709 Risk participation agreements Loan related derivative income 120 97 (27) Foreign exchange contracts Loan related derivative income — 28 69 Mortgage loan commitments: Interest rate lock commitments Mortgage banking revenues 6,106 290 (139) Forward sale commitments Mortgage banking revenues (10,769) (1,818) 997 Total ($672) $2,464 $3,319 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 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) December 31, 2020 2019 Aggregate fair value $61,614 $27,833 Aggregate principal balance 59,313 27,168 Difference between fair value and principal balance $2,301 $665 Changes in fair value of mortgage loans held for sale accounted for under the fair value option election (“fair value option adjustments”) are included in mortgage banking revenues in the Consolidated Statements of Income. Fair value option adjustments amounted to $1.6 million and $167 thousand, respectively, in 2020 and 2019. There were no mortgage loans held for sale 90 days or more past due as of December 31, 2020 and 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 securities held at December 31, 2020 and 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, 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 securities held at December 31, 2020 and 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 that are expected to be repaid substantially through the sale of the collateral, management adjusts the fair value for estimated costs to sell. 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. Loan Servicing Rights Loans sold with the retention of servicing result in the recognition of loan servicing rights. Loan servicing rights are included in other assets in the Consolidated Balance Sheets and are amortized as an offset to mortgage banking revenues over the estimated period of servicing. Loan servicing rights are evaluated quarterly for impairment based on their fair value. Impairment exists if the carrying value exceeds the estimated fair value. Impairment is measured on an aggregated basis by stratifying the loan servicing rights based on homogeneous characteristics such as note rate and loan type. The fair value is estimated using an independent valuation model that estimates the present value of expected cash flows, incorporating assumptions for discount rates and prepayment rates. Any impairment is recognized through a valuation allowance and as a reduction to mortgage banking revenues. Loan servicing rights are categorized as Level 3. Property Acquired Through Foreclosure or Repossession Property acquired through foreclosure or repossession included in other assets in the Consolidated Balance Sheets is adjusted to fair value less costs to sell upon transfer out of loans through a charge to ACL 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 caps, swaps and floors 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 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. The Corporation has determined that the majority of the inputs used to value its derivative positions fall within Level 2 of the fair value hierarchy. However, the credit valuation adjustments utilize Level 3 inputs. As of December 31, 2020 and 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 Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2020 Assets: Available for sale debt securities: Obligations of U.S. government-sponsored enterprises $131,669 $— $131,669 $— Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 740,305 — 740,305 — Individual name issuer trust preferred debt securities 12,669 — 12,669 — Corporate bonds 9,928 — 9,928 — Mortgage loans held for sale 61,614 — 61,614 — Derivative assets 83,028 — 83,028 — Total assets at fair value on a recurring basis $1,039,213 $— $1,039,213 $— Liabilities: Derivative liabilities $81,123 $— $81,123 $— Total liabilities at fair value on a recurring basis $81,123 $— $81,123 $— (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 December 31, 2020, which were written down to fair value during the year ended December 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 loans $1,720 $— $— $1,720 Loan servicing rights 7,434 — — 7,434 Total assets at fair value on a nonrecurring basis $9,154 $— $— $9,154 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 following tables present valuation techniques and unobservable inputs for assets measured at fair value on a nonrecurring basis for which the Corporation has utilized Level 3 inputs to determine fair value: (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range of Inputs Utilized (Weighted Average) December 31, 2020 Collateral dependent individually analyzed loans $1,720 Appraisals of collateral Discount for costs to sell 0% - 25% (11%) Appraisal adjustments 0% - 100% (15%) Loan servicing rights 7,434 Discounted Cash Flow Discount Rate 10% - 14% (10%) Prepayment rates 18% - 42% (21%) (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 0% - 100% (67%) Property acquired through foreclosure or repossession 1,109 Appraisals of collateral Discount for costs to sell 12% Appraisal adjustments 22% 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) Carrying Amount Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2020 Financial Assets: Loans, net of allowance for credit losses on loans $4,151,884 $4,114,628 $— $— $4,114,628 Financial Liabilities: Time deposits $1,296,396 $1,302,128 $— $1,302,128 $— FHLB advances 593,859 602,000 — 602,000 — Junior subordinated debentures 22,681 19,422 — 19,422 — (Dollars in thousands) Carrying Amount Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2019 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 | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The following table summarizes total revenues as presented in the Consolidated Statements of Income and the related amounts which are from contracts with customers within the scope of ASC 606. As shown below, a substantial portion of our revenues are specifically excluded from the scope of ASC 606. Years ended December 31, 2020 2019 2018 (Dollars in thousands) Revenue (1) ASC 606 Revenue (2) Revenue (1) ASC 606 Revenue (2) Revenue (1) ASC 606 Revenue (2) Net interest income $127,444 $— $133,414 $— $132,290 $— Noninterest income: Asset-based wealth management revenues 34,363 34,363 35,806 35,806 37,343 37,343 Transaction-based wealth management revenues 1,091 1,091 1,042 1,042 998 998 Total wealth management revenues 35,454 35,454 36,848 36,848 38,341 38,341 Mortgage banking revenues 47,377 — 14,795 — 10,381 — Card interchange fees 4,287 4,287 4,214 4,214 3,768 3,768 Service charges on deposit accounts 2,742 2,742 3,684 3,684 3,628 3,628 Loan related derivative income 3,991 — 3,993 — 2,461 — Income from bank-owned life insurance 2,491 — 2,354 — 2,196 — Net realized losses on securities — — (53) — — — Other income 3,100 2,669 1,245 1,184 1,339 1,329 Total noninterest income 99,442 45,152 67,080 45,930 62,114 47,066 Total revenues $226,886 $45,152 $200,494 $45,930 $194,404 $47,066 (1) As reported in the Consolidated Statements of Income. (2) Revenue from contracts with customers in scope of ASC 606. The following table presents revenue from contracts with customers based on the timing of revenue recognition: (Dollars in thousands) Years ended December 31, 2020 2019 2018 Revenue recognized at a point in time: Card interchange fees $4,287 $4,214 $3,768 Service charges on deposit accounts 2,103 2,850 2,802 Other income 2,494 989 958 Revenue recognized over time: Wealth management revenues 35,454 36,848 38,341 Service charges on deposit accounts 639 834 826 Other income 175 195 371 Total revenues from contracts in scope of ASC 606 $45,152 $45,930 $47,066 Receivables primarily consist of amounts due from customers for wealth management services performed for which the Corporation’s performance obligations have been fully satisfied. Receivables amounted to $4.8 million and $4.5 million, respectively, at December 31, 2020 and 2019 and were included in other assets in the Consolidated Balance Sheets. Deferred revenues, which are considered contract liabilities under ASC 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 December 31, 2020 and 2019 and were included in other liabilities in the Consolidated Balance Sheets. For commissions and incentives that are in scope of ASC 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 $1.5 million at December 31, 2020, compared to $905 thousand at December 31, 2019 and were included in other assets in the Consolidated Balance Sheets. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits 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 Employee Retirement Income Security Act of 1974, as amended (“ERISA”). Pension benefit costs and benefit obligations incorporate various actuarial and other assumptions, including discount rates, mortality, rates of return on plan assets and compensation increases. Washington Trust evaluates these assumptions annually. The following table presents the plans’ projected benefit obligations, fair value of plan assets and funded (unfunded) status: (Dollars in thousands) Qualified Non-Qualified At December 31, 2020 2019 2020 2019 Change in Benefit Obligation: Benefit obligation at beginning of period $83,141 $73,380 $16,438 $14,626 Service cost 2,164 2,037 170 126 Interest cost 2,505 2,967 465 563 Actuarial loss 10,378 10,453 1,803 2,028 Benefits paid (3,334) (5,546) (903) (905) Administrative expenses (112) (150) — — Benefit obligation at end of period 94,742 83,141 17,973 16,438 Change in Plan Assets: Fair value of plan assets at beginning of period 93,749 86,180 — — Actual return on plan assets 11,626 13,265 — — Employer contributions — — 903 905 Benefits paid (3,334) (5,546) (903) (905) Administrative expenses (112) (150) — — Fair value of plan assets at end of period 101,929 93,749 — — Funded (unfunded) status at end of period $7,187 $10,608 ($17,973) ($16,438) As of December 31, 2020 and 2019, the funded status of the qualified defined benefit pension plan amounted to $7.2 million and $10.6 million, respectively, and was included in other assets in the Consolidated Balance Sheets. The unfunded status of the non-qualified defined benefit retirement plans was $18.0 million and $16.4 million, respectively, at December 31, 2020 and December 31, 2019 and was included in other liabilities in the Consolidated Balance Sheets. The non-qualified retirement plans provide for the designation of assets in rabbi trusts. Securities available for sale and other short-term investments designated for this purpose, with the carrying value of $13.7 million and $14.3 million are included in the Consolidated Balance Sheets at December 31, 2020 and 2019, respectively. The following table presents the amounts included in accumulated other comprehensive income (“AOCI”) related to the qualified pension plan and non-qualified retirement plans: (Dollars in thousands) Qualified Non-Qualified At December 31, 2020 2019 2020 2019 Net actuarial loss included in AOCI, pre-tax $12,051 $10,343 $8,648 $7,405 The accumulated benefit obligation for the qualified pension plan was $87.9 million and $76.6 million at December 31, 2020 and 2019, respectively. The accumulated benefit obligation for the non-qualified retirement plans amounted to $16.4 million and $14.9 million at December 31, 2020 and 2019, respectively. The following table presents components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss), on a pre-tax basis: (Dollars in thousands) Qualified Non-Qualified Years ended December 31, 2020 2019 2018 2020 2019 2018 Net Periodic Benefit Cost: Service cost (1) $2,164 $2,037 $2,244 $170 $126 $108 Interest cost (2) 2,505 2,967 2,715 465 563 475 Expected return on plan assets (2) (4,538) (4,495) (5,272) — — — Amortization of prior service credit (2) — (16) (23) — — (1) Recognized net actuarial loss (2) 1,582 792 1,496 560 408 411 Net periodic benefit cost 1,713 1,285 1,160 1,195 1,097 993 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (on a pre-tax basis): Net loss (gain) 1,708 890 (4,342) 1,244 1,620 (663) Prior service credit — 16 23 — — 1 Recognized in other comprehensive income (loss) 1,708 906 (4,319) 1,244 1,620 (662) Total recognized in net periodic benefit cost and other comprehensive income (loss) $3,421 $2,191 ($3,159) $2,439 $2,717 $331 (1) Included in salaries and employee benefits expense in the Consolidated Statements of Income. (2) Included in other expenses in the Consolidated Statements of Income. Assumptions The following table presents the measurement date and weighted-average assumptions used to determine benefit obligations at December 31, 2020 and 2019: Qualified Non-Qualified Retirement Plans 2020 2019 2020 2019 Measurement date Dec 31, 2020 Dec 31, 2019 Dec 31, 2020 Dec 31, 2019 Discount rate 2.71 % 3.42 % 2.50 % 3.30 % Rate of compensation increase 3.75 3.75 3.75 3.75 The following table presents the measurement date and weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31, 2020, 2019 and 2018: Qualified Pension Plan Non-Qualified Retirement Plans 2020 2019 2018 2020 2019 2018 Measurement date Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Equivalent single discount rate for benefit obligations 3.42 % 4.38 % 3.69 % 3.30 % 4.28 % 3.58 % Equivalent single discount rate for service cost 3.54 4.44 3.76 3.62 4.48 3.79 Equivalent single discount rate for interest cost 3.07 4.12 3.42 2.93 3.98 3.22 Expected long-term return on plan assets 5.75 5.75 6.75 N/A N/A N/A Rate of compensation increase 3.75 3.75 3.75 3.75 3.75 3.75 The expected long-term rate of return on plan assets is based on what the Corporation believes is realistically achievable based on the types of assets held by the plan and the plan’s investment practices. The assumption is updated annually, taking into account the asset allocation, historical asset return trends on the types of assets held and the current and expected economic conditions. Future decreases in the long-term rate of return assumption on plan assets would increase pension costs and, in general, may increase the requirement to make funding contributions to the plans. Future increases in the long-term rate of return on plan assets would have the opposite effect. The discount rate assumption for defined benefit pension plans is reset on the measurement date. Discount rates are selected for each plan by matching expected future benefit payments stream to a yield curve based on a selection of high-quality fixed-income debt securities. Future decreases in discount rates would increase the present value of pension obligations and increase our pension costs, while future increases in discount rates would have the opposite effect. The "spot rate approach" was utilized in the calculation of interest and service cost. The spot rate approach applies separate discount rates for each projected benefit payment in the calculation of interest and service cost. This approach provides a more precise measurement of service and interest cost by improving the correlation between projected benefit cash flows and their corresponding spot rates. Plan Assets The following tables present the fair values of the qualified pension plan’s assets: (Dollars in thousands) Fair Value Measurements Using Assets at December 31, 2020 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $14,427 $— $— $14,427 Obligations of U.S. government-sponsored enterprises — 29,449 — 29,449 Obligations of states and political subdivisions — 2,327 — 2,327 Corporate bonds — 9,211 — 9,211 Common stocks 17,150 — — 17,150 Mutual funds 29,365 — — 29,365 Total plan assets $60,942 $40,987 $— $101,929 (Dollars in thousands) Fair Value Measurements Using Assets at December 31, 2019 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $9,902 $— $— $9,902 Obligations of U.S. government-sponsored enterprises — 28,615 — 28,615 Obligations of states and political subdivisions — 2,998 — 2,998 Corporate bonds — 10,033 — 10,033 Common stocks 14,593 — — 14,593 Mutual funds 27,608 — — 27,608 Total plan assets $52,103 $41,646 $— $93,749 The qualified pension plan uses fair value measurements to record fair value adjustments to the securities held in its investment portfolio. When available, the qualified pension plan uses quoted market prices to determine the fair value of securities; such items are classified as Level 1. This category includes cash and cash equivalents, as well as common stocks and mutual funds which are exchange-traded. Level 2 securities in the qualified pension plan include debt securities with quoted prices, which are traded less frequently than exchange-traded instruments, whose values are determined using matrix pricing with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category includes obligations of U.S. government-sponsored enterprises, obligations of states and political subdivisions and corporate bonds. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities may be classified as Level 3. As of December 31, 2020 and 2019, the qualified pension plan did not have any securities in the Level 3 category. The following table presents the asset allocations of the qualified pension plan, by asset category: December 31, 2020 2019 Asset Category: Cash and cash equivalents 14.2 % 10.6 % Fixed income securities (1) 40.2 44.4 Equity securities (2) 45.6 45.0 Total 100.0 % 100.0 % (1) Includes obligations of U.S. government agencies and U.S. government-sponsored enterprises, obligations of states and political subdivisions and corporate bonds. (2) Includes common stocks and mutual funds. The assets of the qualified defined benefit pension plan trust (the “Pension Trust”) are managed to ensure that all present and future benefit obligations are met as they come due. It seeks to achieve this goal while trying to mitigate volatility in plan funded status, contributions and expense by better matching the characteristics of the plan assets to that of the plan liabilities. As benefit accruals under the qualified plan will be frozen on December 31, 2023, asset allocations have been and will continue to be refined. Cash inflow is typically composed of investment income from portfolio holdings and employer contributions, while cash outflow is for the purpose of paying plan benefits and certain plan expenses. As early as possible each year, the trustee is advised of the projected schedule of employer contributions and estimations of benefit payments. The investment philosophy used for the Pension Trust emphasizes consistency of results over an extended market cycle, while reducing the impact of the volatility of the security markets upon investment results. The assets of the Pension Trust should be protected by substantial diversification of investments, providing exposure to a wide range of quality investment opportunities in various asset classes, with a high degree of liquidity. Fixed income securities will typically be limited to investment grade securities in the top four categories used by the major credit rating agencies. High yield fixed income securities may be used to provide exposure to this asset class as a diversification tool. In order to reduce the volatility of the annual rate of return of the fixed income security portfolio, attention will be given to the maturity structure of the portfolio in the light of money market conditions and interest rate forecasts. The assets of the Pension Trust will typically have a laddered maturity structure, avoiding large concentrations in any single year. Equity securities provide opportunities for dividend and capital appreciation returns. Equity securities will be appropriately diversified by maintaining broad exposure to large-, mid- and small-cap stocks as well as international equities. Investment selection and mix of equity securities should be influenced by forecasts of economic activity, corporate profits and allocation among different segments of the economy while ensuring efficient diversification. The fair value of equity securities of any one issuer will not be permitted to exceed 10% of the total fair value of equity securities of the Pension Trust. Cash Flows Contributions The Internal Revenue Code permits flexibility in plan contributions so that normally a range of contributions is possible. The Corporation does not expect to make a contribution to the qualified pension plan in 2021. In addition, the Corporation expects to contribute $896 thousand in benefit payments to the non-qualified retirement plans in 2021. Estimated Future Benefit Payments The following table presents the benefit payments, which reflect expected future service, as appropriate, expected to be paid: (Dollars in thousands) Qualified Non-Qualified Years ending December 31, 2021 $5,608 $896 2022 4,255 886 2023 4,804 881 2024 4,830 874 2025 6,096 871 2026 and thereafter 27,942 4,460 401(k) Plan The Corporation’s 401(k) Plan provides a match up to a maximum of 3% of employee contributions for substantially all employees. In addition, substantially all employees hired after September 30, 2007, who are ineligible for participation in the qualified defined benefit pension plan, receive a non-elective employer contribution of 4% of compensation. Total employer matching contributions under this plan amounted to $2.8 million, $2.7 million and $2.5 million in 2020, 2019 and 2018, respectively. Deferred Compensation Plan The Amended and Restated Nonqualified Deferred Compensation Plan provides supplemental retirement and tax benefits to directors and certain officers. The plan is funded primarily through pre-tax contributions made by the participants. The assets and liabilities of the Deferred Compensation Plan are recorded at fair value in the Corporation’s Consolidated Balance Sheets. The participants in the plan bear the risk of market fluctuations of the underlying assets. The accrued liability related to this plan amounted to $19.4 million and $17.9 million, respectively, at December 31, 2020 and 2019, and is included in other liabilities on the accompanying Consolidated Balance Sheets. The corresponding invested assets are reported in other assets in the Consolidated Balance Sheets. |
Share-Based Compensation Arrang
Share-Based Compensation Arrangements | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation Arrangements | Share-Based Compensation Arrangements The 2013 Stock Option and Incentive Plan (the “2013 Plan”) was approved by shareholders on April 23, 2013. Under the 2013 Plan, the maximum number of shares of the Bancorp’s common stock to be issued is 1,748,250. The 2013 Plan permits the granting of stock options and other equity incentives to officers, employees, directors and other key persons. Vesting of stock options and share awards may accelerate or may be subject to proportional vesting if there is a change in control, disability, retirement or death (as defined in the 2013 Plan). The following table presents share-based compensation expense and the related income tax benefits recognized in the Consolidated Statements of Income for stock options, nonvested share units and nonvested performance share units: (Dollars in thousands) Years ended December 31, 2020 2019 2018 Share-based compensation expense $3,766 $3,124 $2,602 Related income tax benefits (1) $801 $982 $1,108 (1) Includes $103 thousand of excess tax expenses recognized upon the settlement of share-based compensation awards in 2020. Includes $248 thousand and $496 thousand, respectively, of excess tax benefits recognized upon the settlement of share-based compensation awards in 2019 and 2018. As of December 31, 2020, there was $5.2 million of total unrecognized compensation cost related to share-based compensation arrangements, including stock options, nonvested share units and nonvested performance share units granted under the Plans. That cost is expected to be recognized over a weighted average period of 1.93 years. Stock Options The exercise price of each stock option may not be less than the fair market value of the Bancorp’s common stock on the date of grant, and options shall have a term of no more than ten years. Stock options are designated as either non-qualified or incentive stock options. In general, the stock option price is payable in cash, by the delivery of shares of common stock already owned by the grantee, or a combination thereof. With respect to non-qualified stock option grants issued under the 2013 Plan, the exercise may also be accomplished by withholding the exercise price from the number of shares that would otherwise be delivered upon a cash exercise of the option. Washington Trust uses historical data to estimate stock option exercise and employee departure behavior in the option-pricing model. The expected term of options granted was derived from the output of the option valuation model and represents the period of time that options granted are expected to be outstanding. Expected volatility was based on historical volatility of Washington Trust shares. The risk-free rate for periods within the contractual life of the stock option was based on the U.S. Treasury yield curve in effect at the date of grant. The following presents the assumptions used in determining the grant date fair value of the stock option awards granted to certain key employees: 2020 2019 2018 Options granted 81,530 61,800 47,950 Cliff vesting period (years) 3 3 3 Expected term (years) 6.5 6.5 6.5 Expected dividend yield 3.69 % 3.40 % 3.39 % Weighted average expected volatility 29.89 % 23.05 % 22.73 % Weighted average risk-free interest rate 0.46 % 1.71 % 3.14 % Weighted average grant-date fair value $5.75 $7.44 $9.74 The following table presents a summary of the status of Washington Trust’s stock options outstanding as of and for the year ended December 31, 2020: Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (000’s) Beginning of period 248,815 $45.38 Granted 81,530 32.23 Exercised (4,100) 17.52 Forfeited or expired — — End of period 326,245 $42.44 7.23 $2,011 At end of period: Options exercisable 134,965 $41.40 4.77 $986 Options expected to vest in future periods 191,280 $43.18 8.97 $1,025 The total intrinsic value is the amount by which the fair value of the underlying stock exceeds the exercise price of an option on the exercise date. The following table presents additional information concerning options outstanding and options exercisable at December 31, 2020: Options Outstanding Options Exercisable Exercise Price Ranges Number of Weighted Average Weighted Average Number of Shares Weighted Average $20.01 to $30.00 22,015 1.14 22.89 22,015 22.89 $30.01 to $40.00 123,405 7.82 33.57 41,875 36.17 $40.01 to $50.00 93,050 7.79 45.83 31,250 40.25 $50.01 to $60.00 87,775 7.34 56.24 39,825 58.05 Total 326,245 7.23 $42.44 134,965 $41.40 The total intrinsic value of stock options exercised during the years ended December 31, 2020, 2019 and 2018 was $46 thousand, $580 thousand and $833 thousand, respectively. Nonvested Share Units In 2020, 2019 and 2018, the Corporation granted to directors and certain key employees 27,385, 26,070 and 13,430 share units, respectively, with 3- to 5-year cliff vesting. The following table presents a summary of the status of Washington Trust’s nonvested share units as of and for the year ended December 31, 2020: Number of Shares Weighted Average Grant Date Fair Value Beginning of period 53,890 $52.01 Granted 27,385 35.38 Vested (15,160) 53.39 Forfeited — — End of period 66,115 $44.80 Nonvested Performance Share Units The Corporation granted performance share units to certain key employees providing the opportunity to earn shares of common stock over a 3- to 5-year performance period. The number of shares vested and earned will be contingent upon the Corporation’s attainment of certain performance measures as detailed in the performance share award agreements. The following table presents a summary of the performance share unit awards as of December 31, 2020: Grant Date Fair Value per Share Weighted Average Current Performance Assumption Expected Number of Shares Performance share units awarded in: 2020 $34.22 140% 65,632 2019 52.84 148% 46,320 2018 54.25 150% 44,415 Total 156,367 The following table presents a summary of the status of Washington Trust’s performance share units as of and for the year ended December 31, 2020: Number of Shares Weighted Average Grant Date Fair Value Beginning of period 108,964 $53.16 Granted 71,007 35.70 Vested (23,604) 51.85 Forfeited — — End of period 156,367 $45.43 |
Business Segments
Business Segments | 12 Months Ended |
Dec. 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. Commercial Banking The Commercial Banking segment includes commercial, residential and consumer lending activities; mortgage banking activities; deposit generation; cash management activities; and direct banking activities, which include the operation of ATMs, telephone banking, internet banking and mobile banking services and customer support and sales. Wealth Management Services Wealth Management Services includes investment management; holistic financial planning services; personal trust and estate services, including services as trustee, personal representative, custodian and guardian; settlement of decedents’ estates; and institutional trust services, including custody and 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 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 tables present the statement of operations and total assets for Washington Trust’s reportable segments: (Dollars in thousands) Year ended December 31, 2020 Commercial Wealth Corporate Consolidated Net interest income (expense) $128,600 ($141) ($1,015) $127,444 Provision for credit losses 12,342 — — 12,342 Net interest income (expense) after provision for credit losses 116,258 (141) (1,015) 115,102 Noninterest income 61,463 35,454 2,525 99,442 Noninterest expenses: Depreciation and amortization expense 2,512 1,412 166 4,090 Other noninterest expenses 77,157 27,367 16,770 121,294 Total noninterest expenses 79,669 28,779 16,936 125,384 Income (loss) before income taxes 98,052 6,534 (15,426) 89,160 Income tax expense (benefit) 21,216 1,746 (3,631) 19,331 Net income (loss) $76,836 $4,788 ($11,795) $69,829 Total assets at period end $4,501,875 $74,958 $1,136,336 $5,713,169 Expenditures for long-lived assets 3,097 158 151 3,406 (Dollars in thousands) Year ended December 31, 2019 Commercial Wealth Corporate Consolidated Net interest income (expense) $112,414 ($438) $21,438 $133,414 Provision for loan losses 1,575 — — 1,575 Net interest income (expense) after provision for loan losses 110,839 (438) 21,438 131,839 Noninterest income 27,857 36,856 2,367 67,080 Noninterest expenses: Depreciation and amortization expense 2,630 1,445 159 4,234 Other noninterest expenses 66,517 26,057 13,932 106,506 Total noninterest expenses 69,147 27,502 14,091 110,740 Income before income taxes 69,549 8,916 9,714 88,179 Income tax expense 15,189 2,308 1,564 19,061 Net income $54,360 $6,608 $8,150 $69,118 Total assets at period end $4,070,594 $74,990 $1,147,075 $5,292,659 Expenditures for long-lived assets 2,521 445 166 3,132 (Dollars in thousands) Year ended December 31, 2018 Commercial Wealth Corporate Consolidated Net interest income (expense) $106,668 ($334) $25,956 $132,290 Provision for loan losses 1,550 — — 1,550 Net interest income (expense) after provision for loan losses 105,118 (334) 25,956 130,740 Noninterest income 21,509 38,341 2,264 62,114 Noninterest expenses: Depreciation and amortization expense 2,589 1,501 171 4,261 Other noninterest expenses 62,673 26,222 13,006 101,901 Total noninterest expenses 65,262 27,723 13,177 106,162 Income before income taxes 61,365 10,284 15,043 86,692 Income tax expense 13,149 2,577 2,534 18,260 Net income $48,216 $7,707 $12,509 $68,432 Total assets at period end $3,804,021 $71,254 $1,135,491 $5,010,766 Expenditures for long-lived assets 3,415 407 152 3,974 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The following tables present the activity in other comprehensive income (loss): (Dollars in thousands) Year ended December 31, 2020 Pre-tax Amounts Income Taxes Net of Tax Securities available for sale: Changes in fair value of available for sale debt securities $8,784 $2,129 $6,655 Net (gains) losses on securities reclassified into earnings — — — Net change in fair value of available for sale debt securities 8,784 2,129 6,655 Cash flow hedges: Changes in fair value of cash flow hedges (2,003) (482) (1,521) Net cash flow hedge losses reclassified into earnings (1) 1,136 269 867 Net change in the fair value of cash flow hedges (867) (213) (654) Defined benefit plan obligations: Defined benefit plan obligation adjustment (5,093) (1,197) (3,896) Amortization of net actuarial losses (2) 2,141 400 1,741 Amortization of net prior service credits (2) — — — Net change in defined benefit plan obligations (2,952) (797) (2,155) Total other comprehensive income $4,965 $1,119 $3,846 (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 Consolidated Statements of Income. (2) The pre-tax amounts are included in other expenses in the Consolidated Statements of Income. (Dollars in thousands) Year ended December 31, 2019 Pre-tax Amounts Income Taxes Net of Tax Securities available for sale: Changes in fair value of available for sale debt securities $26,074 $6,127 $19,947 Net losses on securities reclassified into earnings (1) 53 12 41 Net change in fair value of available for sale debt securities 26,127 6,139 19,988 Cash flow hedges: Changes in fair value of cash flow hedges (1,444) (339) (1,105) Net cash flow hedge losses reclassified into earnings (2) 159 38 121 Net change in the fair value of cash flow hedges (1,285) (301) (984) Defined benefit plan obligations: Defined benefit plan obligation adjustment (3,710) (872) (2,838) Amortization of net actuarial losses (3) 1,200 282 918 Amortization of net prior service credits (3) (16) (4) (12) Net change in defined benefit plan obligations (2,526) (594) (1,932) Total other comprehensive loss $22,316 $5,244 $17,072 (1) The pre-tax amount is reported as net realized losses on securities in the Consolidated Statements of Income. (2) 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 Consolidated Statements of Income. (3) The pre-tax amounts are included in other expenses in the Consolidated Statements of Income. (Dollars in thousands) Year ended December 31, 2018 Pre-tax Amounts Income Taxes Net of Tax Securities available for sale: Changes in fair value of available for sale debt securities ($12,063) ($2,835) ($9,228) Net (gains) losses on securities reclassified into earnings — — — Net change in fair value of available for sale debt securities (12,063) (2,835) (9,228) Cash flow hedges: Changes in fair value of cash flow hedges 639 151 488 Net cash flow hedge losses reclassified into earnings (1) 170 39 131 Net change in the fair value of cash flow hedges 809 190 619 Defined benefit plan obligations: Defined benefit plan obligation adjustment 3,098 729 2,369 Amortization of net actuarial losses (2) 1,907 448 1,459 Amortization of net prior service credits (2) (24) (6) (18) Net change in defined benefit plan obligations 4,981 1,171 3,810 Total other comprehensive income ($6,273) ($1,474) ($4,799) (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 Consolidated Statements of Income. (2) The pre-tax amounts are included in other expenses in the Consolidated Statements of Income. The following tables present the changes in accumulated other comprehensive income (loss) by component, net of tax: (Dollars in thousands) Net Unrealized Gains on Available For Sale Debt Securities Net Unrealized (Losses) Gains on Cash Flow Hedges Defined Benefit Pension Plan Adjustment Total Balance at December 31, 2019 $3,226 ($793) ($13,670) ($11,237) Other comprehensive income (loss) before reclassifications 6,655 (1,521) (3,896) 1,238 Amounts reclassified from accumulated other comprehensive income — 867 1,741 2,608 Net other comprehensive income (loss) 6,655 (654) (2,155) 3,846 Balance at December 31, 2020 $9,881 ($1,447) ($15,825) ($7,391) (Dollars in thousands) Net Unrealized (Losses) Gains on Available For Sale Debt Securities Net Unrealized Gains (Losses) on Cash Flow Hedges Defined Benefit Pension Plan Adjustment Total Balance at December 31, 2018 ($16,762) $191 ($11,738) ($28,309) Other comprehensive income (loss) before reclassifications 19,947 (1,105) (2,838) 16,004 Amounts reclassified from accumulated other comprehensive income 41 121 906 1,068 Net other comprehensive income (loss) 19,988 (984) (1,932) 17,072 Balance at December 31, 2019 $3,226 ($793) ($13,670) ($11,237) (Dollars in thousands) Net Unrealized Losses on Available For Sale Debt Securities Net Unrealized (Losses) Gains on Cash Flow Hedges Defined Benefit Pension Plan Adjustment Total Balance at December 31, 2017 ($7,534) ($428) ($15,548) ($23,510) Other comprehensive (loss) income before reclassifications (9,228) 488 2,369 (6,371) Amounts reclassified from accumulated other comprehensive income — 131 1,441 1,572 Net other comprehensive (loss) income (9,228) 619 3,810 (4,799) Balance at December 31, 2018 ($16,762) $191 ($11,738) ($28,309) |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 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: (Dollars and shares in thousands, except per share amounts) Years ended December 31, 2020 2019 2018 Earnings per common share - basic: Net income $69,829 $69,118 $68,432 Less: dividends and undistributed earnings allocated to participating securities (152) (139) (144) Net income available to common shareholders $69,677 $68,979 $68,288 Weighted average common shares 17,282 17,331 17,272 Earnings per common share - basic $4.03 $3.98 $3.95 Earnings per common share - diluted: Net income $69,829 $69,118 $68,432 Less: dividends and undistributed earnings allocated to participating securities (151) (139) (144) Net income available to common shareholders $69,678 $68,979 $68,288 Weighted average common shares 17,282 17,331 17,272 Dilutive effect of common stock equivalents 120 83 119 Weighted average diluted common shares 17,402 17,414 17,391 Earnings per common share - diluted $4.00 $3.96 $3.93 Weighted average common stock equivalents, not included in common stock equivalents above because they were anti-dilutive, totaled 223,506, 100,643 and 55,821, respectively, for the years ended December 31, 2020, 2019 and 2018. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Adoption of ASC 326 As disclosed in Note 2, ASC 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 ASC 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 the GAAP in effect prior to the adoption of ASC 326. As a result of adopting ASC 326, the Corporation recognized an increase in the ACL on unfunded commitments of $1.5 million on January 1, 2020. Financial Instruments with Off-Balance Risk The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers and to manage the Corporation’s exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit, standby letters of credit, 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 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 $11.7 million and $13.7 million, respectively, as of December 31, 2020 and December 31, 2019. At December 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 years ended December 31, 2020, 2019 and 2018. 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) December 31, 2020 2019 Financial instruments whose contract amounts represent credit risk: Commitments to extend credit: Commercial loans $453,493 $471,338 Home equity lines 319,744 295,687 Other loans 89,078 88,613 Standby letters of credit 11,709 13,710 Financial instruments whose notional amounts exceed the amount of credit risk: Mortgage loan commitments: Interest rate lock commitments 167,671 51,439 Forward sale commitments 279,653 94,829 Loan related derivative contracts: Interest rate swaps with customers 991,002 813,458 Mirror swaps with counterparties 991,002 813,458 Risk participation-in agreements 92,717 72,866 Interest rate risk management contracts: Interest rate swaps 60,000 60,000 See Note 14 for additional disclosure pertaining to derivative financial instruments. The ACL on unfunded commitments amounted to $2.4 million at December 31, 2020, compared to $293 thousand at December 31, 2019. The activity in the ACL on unfunded commitments for the year ended December 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 ASC 326 817 626 1,443 34 — 6 6 1,483 Provision (46) 632 586 14 — 6 6 606 Ending Balance $907 $1,402 $2,309 $54 $— $19 $19 $2,382 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. Other When selling a residential real estate mortgage loan or acting as originating agent on behalf of a third party, Washington Trust generally makes various representations and warranties. The specific representations and warranties depend on the nature of the transaction and the requirements of the buyer. Contractual liability may arise when the representations and warranties are breached. In the event of a breach of these representations and warranties, Washington Trust may be required to either repurchase the residential real estate mortgage loan (generally at unpaid principal balance plus accrued interest) with the identified defects or indemnify (“make-whole”) the investor for its losses. |
Parent Company Financial Statem
Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Financial Statements | Parent Company Financial Statements The following tables present parent company only financial statements of the Bancorp, reflecting the investment in the Bank on the equity basis of accounting. The Statements of Changes in Shareholders’ Equity for the parent company only are identical to the Consolidated Statements of Changes in Shareholders’ Equity and are therefore not presented. Balance Sheets (Dollars in thousands, except par value) December 31, 2020 2019 Assets: Cash on deposit with bank subsidiary $1,658 $1,838 Investment in subsidiaries at equity value: Bank 550,986 521,969 Non-bank 1,904 1,882 Dividends receivable from bank subsidiary 11,836 9,575 Other assets 124 232 Total assets $566,508 $535,496 Liabilities: Junior subordinated debentures $22,681 $22,681 Dividends payable 9,592 9,252 Other liabilities 40 71 Total liabilities 32,313 32,004 Shareholders’ Equity: Common stock of $.0625 par value; authorized 60,000,000 shares; 17,363,457 shares issued and 17,265,337 shares outstanding at December 31, 2020 and 17,363,455 shares issued and outstanding at December 31, 2019 1,085 1,085 Paid-in capital 125,610 123,281 Retained earnings 418,246 390,363 Accumulated other comprehensive loss (7,391) (11,237) Treasury stock, at cost; 98,120 shares at December 31, 2020 (3,355) — Total shareholders’ equity 534,195 503,492 Total liabilities and shareholders’ equity $566,508 $535,496 Statements of Income (Dollars in thousands) Years ended December 31, 2020 2019 2018 Income: Dividends from subsidiaries: Bank $43,139 $36,796 $32,394 Non-bank 17 27 24 Total income 43,156 36,823 32,418 Expenses: Interest on junior subordinated debentures 641 980 869 Legal and professional fees 210 147 187 Change in fair value of contingent consideration — — (187) Other 349 337 324 Total expenses 1,200 1,464 1,193 Income before income taxes 41,956 35,359 31,225 Income tax benefit 248 301 284 Income before equity in undistributed earnings of subsidiaries 42,204 35,660 31,509 Equity in undistributed earnings of subsidiaries: Bank 27,603 33,445 36,876 Non-bank 22 13 47 Net income $69,829 $69,118 $68,432 Statements of Cash Flows (Dollars in thousands) Years ended December 31, 2020 2019 2018 Cash flows from operating activities: Net income $69,829 $69,118 $68,432 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries: Bank (27,603) (33,445) (36,876) Non-bank (22) (13) (47) (Increase) decrease in dividend receivable (2,261) (1,813) 8 Decrease (increase) in other assets 109 (43) 70 (Decrease) increase in accrued expenses and other liabilities (31) (15) 17 Change in fair value of contingent consideration liability — — (187) Tax (expense) benefit from stock option exercises and other equity awards (103) 248 496 Other, net 193 (195) (465) Net cash provided by operating activities 40,111 33,842 31,448 Cash flows from financing activities: Payment of contingent consideration liability — — (1,217) Treasury stock purchased (4,322) — — Net proceeds from stock option exercises and issuance of other equity awards, net of awards surrendered (470) 273 (671) Cash dividends paid (35,499) (34,189) (29,312) Net cash used in financing activities (40,291) (33,916) (31,200) Net (decrease) increase in cash (180) (74) 248 Cash at beginning of year 1,838 1,912 1,664 Cash at end of year $1,658 $1,838 $1,912 |
Selected Quarterly Consolidated
Selected Quarterly Consolidated Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Consolidated Financial Data (Unaudited) | Selected Quarterly Consolidated Financial Data (Unaudited) (Dollars and shares in thousands, except per share amounts) 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Interest and dividend income $47,116 $42,612 $40,834 $39,374 Interest expense 14,514 11,667 9,180 7,131 Net interest income 32,602 30,945 31,654 32,243 Provision for credit losses 7,036 2,200 1,325 1,781 Net interest income after provision for credit losses 25,566 28,745 30,329 30,462 Noninterest income 19,927 26,320 25,468 27,727 Noninterest expense 30,453 28,478 32,344 34,109 Income before income taxes 15,040 26,587 23,453 24,080 Income tax expense 3,139 5,547 5,131 5,514 Net income $11,901 $21,040 $18,322 $18,566 Net income available to common shareholders $11,869 $21,000 $18,285 $18,524 Weighted average common shares outstanding - basic 17,345 17,257 17,260 17,264 Weighted average common shares outstanding - diluted 17,441 17,292 17,317 17,360 Per share information: Basic earnings per common share $0.68 $1.22 $1.06 $1.07 Diluted earnings per common share $0.68 $1.21 $1.06 $1.07 Cash dividends declared per share $0.51 $0.51 $0.51 $0.52 (Dollars and shares in thousands, except per share amounts) 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Interest and dividend income $50,194 $50,559 $49,527 $47,383 Interest expense 15,610 16,701 16,549 15,389 Net interest income 34,584 33,858 32,978 31,994 Provision for loan losses 650 525 400 — Net interest income after provision for loan losses 33,934 33,333 32,578 31,994 Noninterest income 15,367 16,753 18,342 16,618 Noninterest expense 26,964 28,151 26,870 28,755 Income before income taxes 22,337 21,935 24,050 19,857 Income tax expense 4,842 4,662 5,236 4,321 Net income $17,495 $17,273 $18,814 $15,536 Net income available to common shareholders $17,461 $17,238 $18,778 $15,502 Weighted average common shares outstanding - basic 17,304 17,330 17,338 17,351 Weighted average common shares outstanding - diluted 17,401 17,405 17,414 17,436 Per share information: Basic earnings per common share $1.01 $0.99 $1.08 $0.89 Diluted earnings per common share $1.00 $0.99 $1.08 $0.89 Cash dividends declared per share $0.47 $0.51 $0.51 $0.51 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Consolidation | 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 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 in consolidation. |
Basis of Accounting | 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 Consolidated Balance Sheets. Interest expense on the junior subordinated debentures is included in the 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. |
Use of Estimates | In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to change are the determination of the allowance for credit losses on loans, the valuation of goodwill and identifiable intangible assets and the accounting for defined benefit pension plans.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. |
Cash and Cash Equivalents | Short-term Investments Short-term investments consist of highly liquid investments with a maturity date of three months or less when purchased and are considered to be cash equivalents. The Corporation’s short-term investments may be composed of overnight federal funds sold, securities purchased under resale agreements, money market mutual funds and U.S. Treasury bills. Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, and other short-term investments. |
Securities | Securities Management determines the appropriate classification of securities at the time of purchase. Investments in debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity and carried at amortized cost. Securities not classified as held to maturity are classified as available for sale. Securities available for sale consist of debt securities that are available for sale to respond to changes in market interest rates, liquidity needs, changes in funding sources and other similar factors. These assets are specifically identified and are carried at fair value. Changes in fair value of available for sale securities, net of applicable income taxes, are reported as a separate component of shareholders’ equity. Washington Trust does not currently have securities designated as held to maturity and also does not maintain a trading portfolio. Premiums and discounts are amortized and accreted over the term of the securities on a method that approximates the level yield method. The amortization and accretion is included in interest income on securities. Interest income is recognized when earned. Realized gains or losses from sales of securities are recorded on the trade date and are determined using the specific identification method. The fair values of securities may be based on either quoted market prices or third party pricing services. Effective January 1, 2020, the Corporation adopted the provisions of ASC 326 and modified its accounting policy for the assessment of available for sale debt securities for impairment, as further described 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 in other assets in the Consolidated Balance Sheets. The Corporation also excludes accrued interest from the estimate of credit losses on debt securities. 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 as of December 31, 2020 and December 31, 2019 and, therefore there was no accrued interest related to debt securities reversed against interest income for 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 of 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 utilized a zero credit loss estimate 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 these 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 uncollectability of an available for sale debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Prior to January 1, 2020, the accounting policy on the assessment of available for sale debt securities for impairment was based on an other-than-temporary assessment. When the fair value of an investment security was less than its amortized cost basis, the Corporation assessed whether the decline in value was other-than-temporary. The Corporation considered whether evidence indicating the cost of the investment was recoverable outweighed evidence to the contrary. Evidence considered in this assessment included the reasons for impairment, the severity and duration of the impairment, changes in the value subsequent to the reporting date, forecasted performance of the issuer, changes in the dividend or interest payment practices of the issuer, changes in the credit rating of the issuer or the specific security, and the general market conditions in the geographic area or industry of the issuer. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock The Bank is a member of the FHLB. The FHLB is a cooperative that provides services, including funding in the form of advances, to its member banking institutions. As a requirement of membership, the Bank must own a minimum amount of FHLB stock, calculated periodically based primarily on its level of borrowings from the FHLB. No market exists for shares of FHLB stock and therefore, it is carried at cost. FHLB stock may be redeemed at par value five years following termination of FHLB membership, subject to limitations which may be imposed by the FHLB or its regulator, the Federal Housing Finance Board, to maintain capital adequacy of the FHLB. While the Bank currently has no intentions to terminate its FHLB membership, the ability to redeem its investment in FHLB stock would be subject to the conditions imposed by the FHLB. The Bank monitors its investment to determine if impairment exists. Based on the capital adequacy and the liquidity position of the FHLB, management believes there is no impairment related to the carrying amount of FHLB stock included in the Consolidated Balance Sheet as of December 31, 2020. |
Mortgage Loans Held for Sale | Mortgage Loans Held for Sale Residential mortgage loans originated and intended for sale in the secondary market are classified as held for sale. ASC 825, “Financial Instruments” allows for the irrevocable option to elect fair value accounting for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis that may otherwise not be required to be measured at fair value under other accounting standards. The Corporation has elected the fair value option for mortgage loans held for sale in order to better match changes in fair values of the loans with changes in the fair value of the derivative forward sale commitment contracts used to economically hedge them. Changes in the fair value of mortgage loans held for sale accounted for under the fair value option are included in mortgage banking revenues. Gains and losses on residential loan sales are recognized at the time of sale and are included in mortgage banking revenues. Upfront fees and costs related to mortgage loans held for sale for which the fair value option was elected are recognized in mortgage banking revenues as received / incurred and are not deferred. Commissions received on mortgage loans brokered to various investors are recognized when received and included in mortgage banking revenues. |
Loan Servicing Rights | Loan Servicing Rights When mortgage loans held for sale are sold with servicing retained, mortgage servicing right assets are recognized as separate assets. Mortgage servicing rights are originally recorded at fair value. Fair value is based on a valuation model that incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, ancillary income, prepayment speeds, and default rates and losses. Mortgage servicing rights are included in other assets and are amortized as an offset to mortgage banking revenues over the period of estimated net servicing income. Mortgage servicing rights are periodically evaluated for impairment based on their fair value. Impairment is measured on an aggregated basis by stratifying the rights based on homogeneous characteristics such as note rate and loan type. The fair value is estimated based on the present value of expected cash flows, incorporating assumptions for discount rate, prepayment speed and servicing cost. Any impairment is recognized through a valuation allowance and as a reduction to mortgage banking revenues. |
Loans | Loans Portfolio Loans Loans are carried at the principal amount outstanding, adjusted by partial charge-offs and net of unamortized deferred loan origination fees and costs. Interest income is accrued on a level yield basis based upon principal amounts outstanding, except for loans on nonaccrual status. Deferred loan origination fees and costs are amortized as an adjustment to yield over the term of the related loans. For purchased loans, which did not show signs of credit deterioration at the time of purchase, interest income is also accrued on a level yield basis based upon principal amounts outstanding and is then further adjusted by accretion of any discount or amortization of any premium associated with the loans. Nonaccrual Loans Loans, with the exception of certain well-secured loans that are in the process of collection, are placed on nonaccrual status and interest recognition is suspended when such loans are 90 days or more overdue with respect to principal and/or interest, or sooner if considered appropriate by management. Well-secured loans are permitted to remain on accrual status provided that full collection of principal and interest is assured and the loan is in the process of collection. Loans are also placed on nonaccrual status when, in the opinion of management, full collection of principal and interest is doubtful. 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. Troubled Debt Restructured Loans A loan that has been modified or renewed is considered to be a troubled debt restructuring (“TDR”) 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. TDRs are classified as accruing or non-accruing based on management’s assessment of the collectability of the loan. Loans that 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. TDRs are reported as such for at least one year from the date of the restructuring. In years after the restructuring, TDRs 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 Corporation has elected to account for eligible loan modifications under Section 4013 of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), as amended by the Coronavirus Response and Relief Supplemental Appropriations Act (the “CRRSA Act”). To be eligible, 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) January 1, 2022. Eligible loan modifications are not required to be classified as TDRs and are not reported as past due provided that they are performing in accordance with the modified terms. Interest income will continue to be recognized unless the loan is placed on nonaccrual status in accordance with the nonaccrual loans accounting policy. Individually Analyzed Loans and Impaired Loans Individually analyzed loans / impaired loans are individually assessed for credit impairment. With the adoption of ASC 326 effective January 1, 2020, individually analyzed loans include nonaccrual commercial loans, reasonably expected TDRs, executed TDRs, and certain other loans based on the underlying risk characteristics and the discretion of management to individually analyze such loans. A TDR 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. Prior to January 1, 2020, impaired loans included nonaccrual loans and executed TDRs. |
Allowance for Credit Losses on Loans | Allowance for Credit Losses on Loans The ACL on loans is increased through a provision for credit losses recognized in the 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. Effective January 1, 2020, the Corporation adopted the provisions of ASC 326 and modified its accounting policy for the ACL on loans, as further described below. The Corporation has made an accounting policy election to exclude accrued interest from the amortized cost basis of loans and reports accrued interest in other assets in the Consolidated Balance Sheets. The Corporation also excludes accrued interest from the estimate of credit losses on loans. The ACL on loans is management’s estimate of expected credit losses over the expected life of the loans at the reporting date. 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 loans), commercial and industrial (including PPP loans), residential real estate (including homeowner construction), home equity and other consumer loans. The second component involves identifying 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, reasonably expected TDRs and executed TDRs, as well as 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 DCF 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 TDRs, 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 DCF methodology to estimate credit losses over the expected life of the loan. The life of the loan excludes expected extensions, renewals 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 TDR 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 has been placed on nonaccrual status, the loan has been modified in a TDR 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 credit 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, 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. Prior to January 1, 2020, the allowance for loan losses was based on an incurred loss methodology and represented management’s estimate of the risk of loss inherent in the loan portfolio as of the balance sheet date. The level of the allowance was based on management’s ongoing review of the growth and composition of the loan portfolio, historical loss experience, estimated loss emergence period (the period from the event that triggers the eventual default until the actual loss was recognized with a charge-off), economic conditions, analysis of asset quality and credit quality levels and trends, the performance of individual loans in relation to contract terms and other pertinent factors. A methodology was used to systematically measure the amount of estimated loan loss exposure inherent in the loan portfolio for the purposes of establishing a sufficient allowance for loan losses. The methodology included: (1) the identification of loss allocations for individual loans deemed to be impaired and (2) the application of loss allocation factors for non-impaired loans based on historical loss experience and estimated loss emergence period, with adjustments for various exposures that management believed were not adequately represented by historical loss experience. |
Allowance for Credit Losses on Unfunded Commitments | Allowance for Credit Losses on Unfunded Commitments The Corporation adopted the provisions of ASC 326 effective January 1, 2020 and modified its accounting policy for the ACL on unfunded commitments. 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 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 Consolidated Balance Sheets. The ACL on unfunded commitments is adjusted through a provision for credit losses recognized in the Consolidated Statements of Income. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation. Depreciation for financial reporting purposes is calculated on the straight-line method over the estimated useful lives of assets. Leasehold improvements are depreciated over the shorter of the expected lease terms or the estimated useful lives of the improvements. Expected lease terms include lease renewal options to the extent that the exercise of such renewals is reasonably assured. Expenditures for major additions and improvements are capitalized while the costs of current maintenance and repairs are charged to operating expenses. The estimated useful lives of premises and improvements range from 5 to 40 years. For furniture, fixtures and equipment, the estimated useful lives range from 3 to 20 years. |
Leases | Leases The Corporation has committed to rent premises used in business operations under non-cancelable operating leases and determines if an arrangement meets the definition of a lease upon inception. The Corporation adopted the provisions of ASC 842, Leases, effective January 1, 2019. ASC 842 requires operating leases to be recorded on the balance sheet, through the recognition of an operating lease right-of-use (“ROU”) asset and an operating lease liability at the commencement date of the new lease. ROU assets represent a right to use an underlying asset for the contractual lease term. Operating lease liabilities represent an obligation to make lease payments arising from the lease. The Corporation’s leases do not provide an implicit interest rate, therefore the Corporation uses its incremental collateralized borrowing rates commensurate with the underlying lease terms to determine the present value of operating lease liabilities. The Corporation’s operating lease agreements contain both lease and non-lease components, which are generally accounted for separately. The Corporation’s lease agreements do not contain any residual value guarantees. Operating leases with terms of 12 months or less are included in ROU assets and operating lease liabilities recorded in the Corporation’s Consolidated Balance Sheets. Operating lease terms include options to extend when it is reasonably certain that the Corporation will exercise such options, determined on a lease-by-lease basis. Prior to January 1, 2019, operating leases were accounted for under ASC 840, Leases, and were considered off-balance sheet commitments as neither an asset or liability was recognized in the Consolidated Balance Sheets. Under both ASC 840 and ASC 842, rental expense for operating leases is recognized on a straight-line basis over the lease term. Variable lease components, such as consumer price index adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance The investment in BOLI represents the cash surrender value of life insurance policies on the lives of certain employees who have provided positive consent allowing the Bank to be the beneficiary of such policies. Increases in the cash value of the policies, as well as insurance proceeds received, are recorded in noninterest income and are not subject to income taxes. The financial strength of the insurance carrier is reviewed prior to the purchase of BOLI and annually thereafter. |
Goodwill and Identifiable Intangible Assets | Goodwill and Identifiable Intangible Assets Goodwill represents the excess of the purchase price over the net fair value of the acquired businesses. Goodwill is not amortized but is tested for impairment at the reporting unit level, defined as the segment level, at least annually in the fourth quarter or more frequently whenever events or circumstances occur that indicate that it is more-likely-than-not that an impairment loss has occurred. In assessing impairment, the Corporation has the option to perform a qualitative analysis to determine whether the existence of events or circumstances leads to a determination that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount. If, after assessing the totality of such events or circumstances, we determine it is not more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, then we would not be required to perform an impairment test. The quantitative impairment analysis requires a comparison of each reporting unit’s fair value to its carrying value to identify potential impairment. Goodwill impairment exists when a reporting unit’s carrying value of goodwill exceeds its implied fair value. Significant judgment is applied when goodwill is assessed for impairment. This judgment includes, but may not be limited to, the selection of appropriate discount rates, the identification of relevant market comparables and the development of cash flow projections. The selection and weighting of the various fair value techniques may result in a higher or lower fair value. Judgment is applied in determining the weightings that are most representative of fair value. Intangible assets identified in acquisitions consist of advisory contracts. The value attributed to intangible assets was based on the time period over which they are expected to generate economic benefits. Intangible assets are amortized over their estimated lives using a method that approximates the amount of economic benefits that are realized by the Corporation. Intangible assets with definite lives are tested for impairment whenever events or circumstances occur that indicate that the carrying amount may not be recoverable. If applicable, the Corporation tests each of the intangibles by comparing the carrying value of the intangible asset to the sum of undiscounted cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its undiscounted cash flows, then an impairment loss would be recognized for the amount by which the carrying amount exceeds its fair value. Impairment would result in a write-down to the estimated fair value based on the anticipated discounted future cash flows. The remaining useful life of the intangible assets that are being amortized is also evaluated to determine whether events and circumstances warrant a revision to the remaining period of amortization. |
Impairment of Long-Lived Assets Other than Goodwill | Impairment of Long - Lived Assets Other than Goodwill Long-lived assets, including premises and equipment, are reviewed for impairment whenever events or changes in business circumstances indicate that the carrying amount may not be fully recoverable. If impairment is determined to exist, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. |
Property Acquired through Foreclosure or Repossession | Property Acquired through Foreclosure or Repossession Property acquired through foreclosure or repossession is carried at the lower of cost or fair value less estimated costs to sell. Fair value of such assets is determined based on independent appraisals and other relevant factors. Any write-down to fair value at the time of foreclosure or repossession is charged to the allowance for loan losses. Subsequent to foreclosure or repossession, a valuation allowance is maintained for declines in market value and for estimated selling expenses. Upon sale of foreclosed property, any excess of the carrying value over the sales proceeds is recognized as a loss on sale. Any excess of sales proceeds over the carrying value of the foreclosed property is first applied as a recovery to the valuation allowance, if any, with the remainder being recognized as a gain on sale. Changes to the valuation allowance, expenses associated with ownership of these properties, and gains and losses from their sale are included in foreclosed property costs. Loans that are substantively repossessed include only those loans for which the Corporation has obtained control of the collateral, but has not completed legal foreclosure proceedings. |
Investment in Real Estate Limited Partnerships | Investment in Real Estate Limited Partnerships The Bank has investments in real estate limited partnerships that renovate, own and operate low-income housing complexes. The Bank neither actively participates nor has a controlling interest in the real estate limited partnerships. The carrying value of these investments is recorded in other assets on the Consolidated Balance Sheets. Investments in real estate limited partnerships are accounted for using the proportional amortization method. Unfunded commitments for future capital contributions are recognized and recorded in other liabilities on the Consolidated Balance Sheets. Under the proportional amortization method, the investment is amortized over the same tax period and in proportion to the total tax benefits expected to be allocated to the Bank. The amortization is recognized as a component of income tax expense in the Consolidated Statements of Income. In addition, operating losses and tax credits generated by the partnership are also recorded as a reduction to income tax expense. |
Transfers and Servicing of Assets and Extinguishments of Liabilities | Transfers and Servicing of Assets and Extinguishments of Liabilities The accounting for transfers and servicing of financial assets and extinguishments of liabilities is based on consistent application of a financial components approach that focuses on control. This approach distinguishes transfers of financial assets that are sales from transfers that are secured borrowings. Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Corporation, (2) the transferee obtains the right to pledge or exchange the transferred assets with no conditions that constrain the transferee and provide more than a trivial benefit to the Corporation, and (3) the Corporation does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. If a transfer does not meet the criteria for a sale, the transfer is accounted for as a secured borrowing with a pledge of collateral. |
Wealth Management Assets Under Administration | Wealth Management Assets Under Administration AUA represents assets held in a fiduciary or agency capacity for wealth management clients and are not included in the Consolidated Balance Sheets, as these are not assets of the Corporation. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers ASC 606, Revenue from Contracts with Customers, provides a revenue recognition framework for contracts with customers unless those contracts are within the scope of other accounting standards. Revenue from contracts with customers is measured based on the consideration specified in the contract with a customer. The Corporation recognizes revenue from contracts with customers when it satisfies its performance obligations. The performance obligations are generally satisfied as services are rendered and can either be satisfied at a point in time or over time. 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 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. In certain cases, other parties are involved with providing services to our customers. If the Corporation is a principal in the transaction (providing services itself or through a third party on its behalf), revenues are reported based on the gross consideration received from the customer and any related expenses are reported gross in noninterest expense. If the Corporation is an agent in the transaction (referring customers to another party to provide services), the Corporation reports its net fee or commission retained as revenue. For certain commissions and incentives, 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. Contract cost assets are included in other assets in the Consolidated Balance Sheets. The amortization of contract cost assets is recorded within salaries and employee benefits expense in the Consolidated Statements of Income. |
Pension Costs | Pension Costs Pension benefits are accounted for using the net periodic benefit cost method, which recognizes the compensation cost of an employee’s pension benefit over that employee’s approximate service period. Pension benefit costs and benefit obligations incorporate various actuarial and other assumptions, including discount rates, mortality, rates of return on plan assets and compensation increases. Management evaluates these assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to so do. The effect of modifications to those assumptions is recorded in other comprehensive income (loss) and amortized to net periodic cost over future periods. The service cost component of net periodic benefit cost is recognized within salaries and employee benefits expense in the Consolidated Statements of Income. All other components of net periodic benefit cost are recognized in other noninterest expense in the Consolidated Statements of Income. The funded status of defined benefit pension plans, measured as the difference between the fair value of plan assets and the projected benefit obligation, is recognized in the Consolidated Balance Sheet. The changes in the funded status of the defined benefit plans, including actuarial gains and losses and prior service costs and credits, are recognized in comprehensive income in the year in which the changes occur. |
Share-Based Compensation | Share-Based Compensation Share-based compensation plans provide for awards of stock options and other equity incentives, including nonvested share units and nonvested performance share units. Compensation expense for awards is recognized over the service period based on the fair value at the date of grant. Grant date fair value for stock options is estimated using the Black-Scholes option-pricing model. Awards of nonvested share units and nonvested performance share units are valued at the fair market value of the Bancorp’s common stock as of the award date. Nonvested performance share unit compensation expense is based on the most recent performance assumption available and is adjusted as assumptions change. Forfeitures are recognized when they occur. When available, vested equity awards are issued from treasury stock. Excess tax benefits (expenses) result when tax return deductions differ from recognized share-based compensation cost that are determined using the grant-date fair value approach for financial statement purposes. Excess tax benefits (expenses) related to the settlement of share-based awards are recorded as a decrease (increase) to income tax expense. Excess tax benefits (expenses) on the settlement of share-based awards are reported in the Consolidated Statements of Cash Flows as an operating activity. Dividends on nonvested share units are nonforfeitable and paid quarterly in conjunction with dividends declared and paid to common shareholders. Dividends on nonvested performance share units are accrued based on the most recent performance assumptions available and paid upon the issuance of the award, once vested. |
Income Taxes | Income Taxes Income tax expense is determined based on the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Additionally, a liability for unrecognized tax benefits is recorded for uncertain tax positions taken by the Corporation on its tax returns for which there is less than a 50% likelihood of being recognized upon a tax examination. The Corporation records interest related to unrecognized tax benefits in income tax expense. Penalties, if incurred, would be recognized as a component of income tax expense. |
Segment Reporting | Segment Reporting The Corporation 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. Any changes in estimates and allocations that may affect the reported results of any business segment will not affect the consolidated financial position or results of operations of the Corporation as a whole. 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. |
Earnings Per Share (EPS) | Earnings Per Common Share (“EPS”) EPS is calculated utilizing the two-class method. The two-class method is an earnings allocation formula that determines earnings per share of each class of stock according to dividends and participation rights in undistributed earnings. Share‑based awards that entitle holders to receive non-forfeitable dividends before vesting are considered participating securities (i.e. nonvested restricted stock units), not subject to performance-based measures. These participating securities are included in the earnings allocation for computing basic earnings per share under this method. Undistributed income is allocated to common shareholders and participating securities under the two-class method based upon the proportion of each to the total weighted average shares available. Under the two-class method, basic earnings per common share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect on common shares outstanding, using the treasury stock method. |
Comprehensive Income | Comprehensive Income Comprehensive income is defined as all changes in equity, except for those resulting from transactions with shareholders. Net income is a component of comprehensive income. All other components are referred to in the aggregate as other comprehensive income (loss). Other comprehensive income (loss) includes the after-tax effect of net changes in the fair value of securities available for sale, net changes in fair value of cash flow hedges and net changes in defined benefit pension plan obligations. |
Guarantees | GuaranteesStandby letters of credit are considered a guarantee of the Corporation. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan facilities to customers. Under the standby letters of credit, the Corporation is required to make payments to the beneficiary of the letters of credit upon request by the beneficiary contingent upon the customer’s failure to perform under the terms of the underlying contract with the beneficiary. |
Derivative Insturments and Hedging Activities | Derivative Instruments and Hedging Activities Derivatives are recognized as either assets or liabilities on the balance sheet and are measured at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and resulting designation. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative are recorded in other comprehensive income (loss) and subsequently reclassified to earnings when gains or losses are realized. For derivatives not designated as hedges, changes in fair value of the derivative instruments are recognized in earnings, in noninterest income. The accrued net settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense based on the item being hedged. Changes in fair value of derivatives, including accrued net settlements that do not qualify for hedge accounting, are reported in noninterest income. When a cash flow hedge is discontinued, but the hedged cash flows or forecasted transaction is still expected to occur, changes in value that were accumulated in other comprehensive income (loss) are amortized or accreted into earnings over the same periods that the hedged transactions will affect earnings. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820, “Fair Value Measurements and Disclosures”, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The required disclosures about fair value measurements have been included in Note 15. |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Gain (Loss) on Securities [Line Items] | |
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) December 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 $131,186 $628 ($145) $— $131,669 Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 725,890 14,942 (527) — 740,305 Individual name issuer trust preferred debt securities 13,341 — (672) — 12,669 Corporate bonds 11,153 — (1,225) — 9,928 Total available for sale debt securities $881,570 $15,570 ($2,569) $— $894,571 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 |
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 December 31, 2020 Amortized Cost Fair Value Due in one year or less $128,971 $131,519 Due after one year to five years 350,859 357,148 Due after five years to ten years 277,148 279,859 Due after ten years 124,592 126,045 Total securities $881,570 $894,571 |
Schedule of Realized Gain (Loss) | The following table summarizes amounts relating to sales of securities: (Dollars in thousands) For the periods ended December 31, 2020 2019 2018 Proceeds from sales $— $11,877 $— Gross realized gains $— $— $— Gross realized losses — (53) — Net realized losses on securities $— ($53) $— |
Securities in a Continuous Unrealized Loss Position | The following tables summarize temporarily impaired securities, segregated by length of time the securities have been in a continuous unrealized loss position: (Dollars in thousands) Less than 12 Months 12 Months or Longer Total December 31, 2020 # Fair Unrealized # Fair Unrealized # Fair Unrealized Obligations of U.S. government-sponsored enterprises 6 $63,856 ($145) — $— $— 6 $63,856 ($145) Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 16 107,283 (527) — — — 16 107,283 (527) Individual name issuer trust preferred debt securities — — — 5 12,669 (672) 5 12,669 (672) Corporate bonds — — — 3 9,928 (1,225) 3 9,928 (1,225) Total temporarily impaired securities 22 $171,139 ($672) 8 $22,597 ($1,897) 30 $193,736 ($2,569) (Dollars in thousands) Less than 12 Months 12 Months or Longer Total December 31, 2019 # Fair Unrealized # Fair Unrealized # Fair Unrealized 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 temporarily impaired securities 7 $61,514 ($192) 34 $289,468 ($4,708) 41 $350,982 ($4,900) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Summary of Loans | The following is a summary of loans: (Dollars in thousands) December 31, 2020 2019 Commercial: Commercial real estate (1) $1,633,024 $1,547,572 Commercial & industrial (2) 817,408 585,289 Total commercial 2,450,432 2,132,861 Residential Real Estate: Residential real estate (3) 1,467,312 1,449,090 Consumer: Home equity 259,185 290,874 Other (4) 19,061 20,174 Total consumer 278,246 311,048 Total loans (5) $4,195,990 $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 & industrial (“C&I”) consists of loans to businesses and individuals, a portion of which are fully or partially collateralized by real estate. C&I also includes $199.8 million of PPP loans as of December 31, 2020. (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 $1.5 million and $5.3 million, respectively, at December 31, 2020 and 2019 and net unamortized premiums on purchased loans of $787 thousand and $995 thousand, respectively, at December 31, 2020 and 2019. |
Past Due Loans | The following tables present an aging analysis of past due loans, segregated by class of loans: (Dollars in thousands) Days Past Due December 31, 2020 30-59 60-89 Over 90 Total Past Due Current Total Loans Commercial: Commercial real estate $265 $— $— $265 $1,632,759 $1,633,024 Commercial & industrial 1 2 — 3 817,405 817,408 Total commercial 266 2 — 268 2,450,164 2,450,432 Residential Real Estate: Residential real estate 4,466 701 5,172 10,339 1,456,973 1,467,312 Consumer: Home equity 894 129 644 1,667 257,518 259,185 Other 23 7 88 118 18,943 19,061 Total consumer 917 136 732 1,785 276,461 278,246 Total loans $5,649 $839 $5,904 $12,392 $4,183,598 $4,195,990 (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) December 31, 2020 2019 Commercial: Commercial real estate $— $603 Commercial & industrial — 657 Total commercial — 1,260 Residential Real Estate: Residential real estate 11,981 14,297 Consumer: Home equity 1,128 1,763 Other 88 88 Total consumer 1,216 1,851 Total nonaccrual loans $13,197 $17,408 Accruing loans 90 days or more past due $— $— For nonaccrual loans with a carrying value of $3.0 million as of December 31, 2020, no ACL was deemed necessary. As of December 31, 2020 and December 31, 2019, nonaccrual loans secured by one- to four-family residential property amounting to $3.4 million and $5.8 million, respectively, were in process of foreclosure. Nonaccrual loans of $4.7 million and $5.9 million, respectively, were current as to the payment of principal and interest at December 31, 2020 and December 31, 2019. There were no significant commitments to lend additional funds to borrowers whose loans were on nonaccrual status at December 31, 2020. The following table presents interest income recognized on nonaccrual loans segregated by loan class: (Dollars in thousands) Interest Income Recognized Year ended December 31, 2020 Commercial: Commercial real estate $— Commercial & industrial 2 Total commercial 2 Residential Real Estate: Residential real estate 379 Consumer: Home equity 35 Other — Total consumer 35 Total $416 |
TDRs | The following table presents the recorded investment in TDRs and certain other information related to TDRs: (Dollars in thousands) December 31, 2020 2019 Accruing TDRs $13,418 $377 Nonaccrual TDRs 2,345 492 Total TDRs $15,763 $869 Specific reserves on TDRs included in the ACL on loans $159 $97 Additional commitments to lend to borrowers with TDRs $— $— The following table presents loans modified as a TDR: (Dollars in thousands) Outstanding Recorded Investment # of Loans Pre-Modifications Post-Modifications Years ended December 31, 2020 2019 2020 2019 2020 2019 Commercial: Commercial real estate 3 — $1,798 $— $1,798 $— Commercial & industrial 5 — 6,844 — 6,844 — Total commercial 8 — 8,642 — 8,642 — Residential Real Estate: Residential real estate 11 — 5,943 — 5,943 — Consumer: Home equity 4 — 873 — 873 — Other — — — — — — Total consumer 4 — $873 $— $873 $— Total 23 — $15,458 $— $15,458 $— |
Schedule of How Loans Modified As TDR | The following table presents information on how loans were modified as a TDR: (Dollars in thousands) Years ended December 31, 2020 2019 Below-market interest rate concession $— $— Payment deferral 7,704 — Maturity / amortization concession — — Interest only payments 6,384 — Combination (1) 1,370 — Total $15,458 $— (1) Loans included in this classification were modified with a combination of any two of the concessions listed in this table. |
TDRs Subsequent Payment Defaults | The following table presents information on TDRs modified within the previous 12 months for which there was a payment default: (Dollars in thousands) # of Loans Recorded Investment Years ended December 31, 2020 2019 2020 2019 Commercial: Commercial real estate 1 — $850 $— Commercial & industrial — — — — Residential real estate: Residential real estate 2 — 1,299 — Consumer: Home equity 2 — 118 — Other — — — — Total 5 — $2,267 $— |
Collateral Dependent Individually Analyzed Loans | The following table presents the carrying value of collateral dependent individually analyzed loans as of December 31, 2020: (Dollars in thousands) Carrying Value Related Allowance Commercial: Commercial real estate (1) $1,792 $— Commercial & industrial (2) 451 — Total commercial 2,243 — Residential Real Estate: Residential real estate (3) 5,947 38 Consumer: Home equity (3) 254 183 Other — — Total consumer 254 183 Total $8,444 $221 (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, impaired loans individually analyzed for impairment included nonaccrual loans and executed TDRs. The following is a summary of impaired loans as of December 31, 2019: (Dollars in thousands) Recorded Investment (1) Unpaid Principal Related Allowance No Related Allowance Recorded 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 (TDRs for which management has concluded that the collectability of the loan is not in doubt), the recorded investment also includes accrued interest. As required under the GAAP in effect prior to the adoption of ASC 326, the following table presents the average recorded investment balance of impaired loans and interest income recognized on impaired loans segregated by loan class: (Dollars in thousands) Average Recorded Investment Interest Income Recognized Years ended December 31, 2019 2018 2019 2018 Commercial: Commercial real estate $864 $1,050 $1 $— Commercial & industrial 2,149 5,403 106 259 Total commercial 3,013 6,453 107 259 Residential real estate: Residential real estate 11,575 9,645 473 393 Consumer: Home equity 1,466 1,182 58 52 Other 68 69 2 5 Total consumer 1,534 1,251 60 57 Totals $16,122 $17,349 $640 $709 |
Credit Quality Indicators | The following table summarizes the Corporation’s loan portfolio by credit quality indicator and loan portfolio segment as of December 31, 2020: (Dollars in thousands) Term Loans Amortized Cost by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Revolving Loans Converted to Term Loans Total Commercial: CRE: Pass $283,341 $353,875 $260,917 $236,310 $136,490 $249,359 $10,333 $2,386 $1,533,011 Special Mention 756 20,235 39,387 16,222 11,318 10,367 771 — 99,056 Classified 957 — — — — — — — 957 Total CRE 285,054 374,110 300,304 252,532 147,808 259,726 11,104 2,386 1,633,024 C&I: Pass 293,493 95,775 98,146 56,792 44,445 91,128 95,817 1,296 776,892 Special Mention 1,123 722 3,210 6,839 3,141 14,853 3,806 56 33,750 Classified 403 — — — — 6,363 — — 6,766 Total C&I 295,019 96,497 101,356 63,631 47,586 112,344 99,623 1,352 817,408 Residential Real Estate: Residential real estate: Current 463,477 253,228 146,839 155,976 128,139 309,314 — — 1,456,973 Past Due 238 1,698 1,310 886 110 6,097 — — 10,339 Total residential real estate 463,715 254,926 148,149 156,862 128,249 315,411 — — 1,467,312 Consumer: Home equity: Current 9,838 6,771 3,898 1,474 1,217 3,955 219,085 11,280 257,518 Past Due — 35 24 — — 186 310 1,112 1,667 Total home equity 9,838 6,806 3,922 1,474 1,217 4,141 219,395 12,392 259,185 Other: Current 5,214 2,241 1,237 1,544 548 7,850 308 1 18,943 Past Due 19 1 — — 88 7 3 — 118 Total other 5,233 2,242 1,237 1,544 636 7,857 311 1 19,061 Total Loans $1,058,859 $734,581 $554,968 $476,043 $325,496 $699,479 $330,433 $16,131 $4,195,990 Consistent with industry practice, Washington Trust may renew commercial loans at or immediately prior to their maturity. In the table above, renewals subject to full credit evaluation before being granted are reported as originations in the period renewed. As required under the GAAP in effect prior to the adoption of ASC 326, the following table presents the commercial loan portfolio, segregated by category of credit quality indicator as of December 31, 2019: (Dollars in thousands) 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 As required under the GAAP in effect prior to the adoption of ASC 326, the following table presents the residential and consumer loan portfolios, segregated by category of credit quality indicator as of December 31, 2019: (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 |
Loan Servicing Rights | The following table presents an analysis of loan servicing rights: (Dollars in thousands) Loan Servicing Valuation Total Balance at December 31, 2017 $3,613 $— $3,613 Loan servicing rights capitalized 905 — 905 Amortization (867) — (867) Balance at December 31, 2018 3,651 — 3,651 Loan servicing rights capitalized 902 — 902 Amortization (1,027) — (1,027) Balance at December 31, 2019 3,526 — 3,526 Loan servicing rights capitalized 6,569 — 6,569 Amortization (2,507) — (2,507) Increase in impairment reserve — (154) (154) Balance at December 31, 2020 $7,588 ($154) $7,434 |
Amortization Expense Related to Loan Servicing Assets | The following table presents estimated aggregate amortization expense related to loan servicing assets: (Dollars in thousands) Years ending December 31: 2021 $2,407 2022 1,644 2023 1,122 2024 766 2025 523 2026 and thereafter 1,126 Total estimated amortization expense $7,588 |
Loans Serviced for Others, by Loan Portfolio | The following table presents the balance of loans serviced for others by loan portfolio: (Dollars in thousands) December 31, 2020 2019 Residential real estate $1,231,201 $586,996 Commercial 155,935 159,948 Total $1,387,136 $746,944 |
Allowance for Credit Losses o_2
Allowance for Credit Losses on Loans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Allowance for Credit Losses on Loans Rollforward Analysis | The following table presents the activity in the ACL on loans for the year ended December 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 ASC 326 3,405 3,029 6,434 221 (106) (48) (154) 6,501 Charge-offs (356) (586) (942) (99) (224) (52) (276) (1,317) Recoveries 51 24 75 20 52 25 77 172 Provision 4,224 5,840 10,064 1,285 188 199 387 11,736 Ending Balance $22,065 $12,228 $34,293 $8,042 $1,300 $471 $1,771 $44,106 The following table presents the activity in the allowance for loan losses for the year ended December 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 (1,028) (21) (1,049) (486) (390) (95) (485) (2,020) Recoveries 125 168 293 — 72 22 94 387 Provision 263 (2,073) (1,810) 3,114 105 166 271 1,575 Ending Balance $14,741 $3,921 $18,662 $6,615 $1,390 $347 $1,737 $27,014 The following table presents the activity in the allowance for loan losses for the year ended December 31, 2018: (Dollars in thousands) Commercial Consumer CRE C&I Total Commercial Residential Real Estate Home Equity Other Total Consumer Total Beginning Balance $12,729 $5,580 $18,309 $5,427 $2,412 $340 $2,752 $26,488 Charge-offs (627) (10) (637) (250) (193) (107) (300) (1,187) Recoveries 25 119 144 21 29 27 56 221 Provision 3,254 158 3,412 (1,211) (645) (6) (651) 1,550 Ending Balance $15,381 $5,847 $21,228 $3,987 $1,603 $254 $1,857 $27,072 |
Schedule of Allowance for Loan Loss by Segment & Impairment Methodology | As required under the GAAP in effect prior to the adoption of ASC 326, the following table presents the Corporation’s loan portfolio and associated allowance for loan losses by portfolio segment and by impairment methodology as of December 31, 2019: (Dollars in thousands) Loans Related Loans Individually Evaluated for Impairment 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 Impairment 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 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Premises and Equipment | The following presents a summary of premises and equipment: (Dollars in thousands) December 31, 2020 2019 Land $5,921 $5,921 Premises and improvements 42,510 40,982 Furniture, fixtures and equipment 24,969 24,760 Total premises and equipment 73,400 71,663 Less: accumulated depreciation 44,530 42,963 Total premises and equipment, net $28,870 $28,700 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Lease Terms | The following table presents information regarding the Corporation’s operating leases: At December 31, 2020 2019 Weighted average discount rate 3.34 % 3.67 % Range of lease expiration dates 7 months - 20 years 4 months - 21 years Range of lease renewal options 1 year - 5 years 1 year - 5 years Weighted average remaining lease term 13.4 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 December 31, 2020, including a reconciliation to the present value of operating lease liabilities recognized in the Consolidated Balance Sheets: (Dollars in thousands) Years ending December 31: 2021 $3,922 2022 3,890 2023 3,830 2024 3,618 2025 2,879 2026 and thereafter 22,046 Total operating lease payments (1) 40,185 Less: interest 8,468 Present value of operating lease liabilities (2) $31,717 (1) Includes $2.1 million related to options to extend lease terms that are reasonably certain of being exercised. (2) Includes short-term operating lease liabilities of $2.9 million. |
Schedule of Total Lease Expense | The following table presents the components of total lease expense and operating cash flows: (Dollars in thousands) Year ended December 31, 2020 2019 Lease Expense: Operating lease expense $3,921 $3,724 Variable lease expense 56 49 Total lease expense (1) $3,977 $3,773 Cash Paid: Cash paid reducing operating lease liabilities $3,791 $3,586 (1) Included in net occupancy expenses in the Consolidated Income Statement. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Carrying Value of Goodwill | The following table presents the carrying value of goodwill at the reporting unit (or business segment) level: (Dollars in thousands) December 31, 2020 2019 Commercial Banking Segment $22,591 $22,591 Wealth Management Services Segment 41,318 41,318 Total goodwill $63,909 $63,909 |
Schedule of Carrying Value of Other Intangible Assets | The following table presents the components of intangible assets: (Dollars in thousands) December 31, 2020 2019 Gross carrying amount $20,803 $20,803 Accumulated amortization 14,498 13,585 Net amount $6,305 $7,218 |
Schedule of Estimated Annual Amortization Expense | The following table presents estimated annual amortization expense for intangible assets at December 31, 2020: (Dollars in thousands) Years ending December 31, 2021 $890 2022 860 2023 843 2024 826 2025 702 2026 and thereafter 2,184 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | The following table presents the components of income tax expense: (Dollars in thousands) Years ended December 31, 2020 2019 2018 Current Tax Expense: Federal $19,248 $17,298 $15,460 State 3,213 3,254 2,863 Total current tax expense 22,461 20,552 18,323 Deferred Tax (Benefit) Expense: Federal (2,375) (1,294) 63 State (755) (197) (126) Total deferred tax (benefit) expense (3,130) (1,491) (63) Total income tax expense $19,331 $19,061 $18,260 |
Schedule of Effective Income Tax Rate Reconciliation | Total income tax expense varies from the amount determined by applying the Federal income tax rate to income before income taxes. The following table presents the reasons for the differences: Years ended December 31, 2020 2019 2018 (Dollars in thousands) Amount Rate Amount Rate Amount Rate Tax expense at Federal statutory rate $18,724 21.0 % $18,518 21.0 % $18,205 21.0 % Increase (decrease) in taxes resulting from: State income tax expense, net of federal tax benefit 1,995 2.2 2,417 2.7 2,162 2.5 Tax-exempt income, net (803) (0.9) (814) (0.9) (809) (0.9) BOLI (523) (0.6) (494) (0.6) (461) (0.5) Investment in low-income housing limited partnership (118) (0.1) — — — — Federal tax credits (93) (0.1) (364) (0.4) (364) (0.4) Dividends received deduction (28) — (36) — (45) (0.1) Change in fair value of contingent consideration — — — — (39) (0.1) Share-based compensation 92 0.1 (221) (0.3) (444) (0.5) Other 85 0.1 55 0.1 55 0.1 Total income tax expense $19,331 21.7 % $19,061 21.6 % $18,260 21.1 % |
Schedule of Deferred Tax Assets and Liabilities | The following table presents the approximate tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities: (Dollars in thousands) December 31, 2020 2019 Deferred Tax Assets: Allowance for credit losses on loans $10,585 $6,348 Operating lease liabilities 7,612 6,782 Deferred compensation 4,646 4,200 Deferred loan origination fees 2,654 1,505 Defined benefit pension obligations 2,576 1,361 Share-based compensation 1,825 1,358 Other 2,583 2,031 Deferred tax assets 32,481 23,585 Deferred Tax Liabilities: Operating lease right-of-use assets (7,085) (6,296) Deferred loan origination costs (4,321) (4,084) Net unrealized gains on available for sale debt securities (3,120) (991) Loan servicing rights (1,784) (829) Amortization of intangibles (1,513) (1,696) Depreciation of premises and equipment (1,215) (669) Other (1,253) (719) Deferred tax liabilities (20,291) (15,284) Net deferred tax asset $12,190 $8,301 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deposits [Abstract] | |
Summary of Deposits | The following table presents a summary of deposits: (Dollars in thousands) December 31, 2020 2019 Noninterest-bearing demand deposits $832,287 $609,924 Interest-bearing demand deposits 174,290 159,938 NOW accounts 698,706 520,295 Money market accounts 910,167 765,899 Savings accounts 466,507 373,503 Time deposits (1) 1,296,396 1,069,323 Total deposits $4,378,353 $3,498,882 (1) Includes wholesale brokered time deposit balances of $591,541 and $284,842, respectively, as of December 31, 2020 and December 31, 2019. |
Schedule of Time Certificates of Deposit Maturities | The following table presents scheduled maturities of time certificates of deposit: (Dollars in thousands) Scheduled Maturity Weighted Average Rate Years ending December 31: 2021 $977,912 0.77 % 2022 222,300 1.30 2023 35,026 1.90 2024 18,736 1.64 2025 42,422 1.17 2026 and thereafter — — Balance at December 31, 2020 $1,296,396 0.91 % |
Schedule of Time Certificates of Deposit $100 Thousand or More Maturities | The following table presents the amount of time certificates of deposit in denominations of $100 thousand or more at December 31, 2020, maturing during the periods indicated: (Dollars in thousands) January 1, 2021 to March 31, 2021 $131,277 April 1, 2021 to June 30, 2021 77,811 July 1, 2021 to December 31, 2021 75,982 January 1, 2022 and beyond 126,977 Balance at December 31, 2020 $412,047 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
FHLB Advances Maturity Summary | The following table presents maturities and weighted average interest rates on FHLB advances outstanding as of December 31, 2020: (Dollars in thousands) Scheduled Weighted 2021 $517,222 0.71 % 2022 813 5.12 2023 856 5.12 2024 35,900 2.52 2025 2,751 5.03 2026 and thereafter 36,317 3.13 Total $593,859 1.00 % |
Schedule of Short-Term FHLB Advances | The following table presents certain information concerning short-term FHLB advances: (Dollars in thousands) As of and for the years ended December 31, 2020 2019 2018 Average amount outstanding during the period $690,366 $718,722 $484,090 Amount outstanding at end of period 354,000 897,000 630,000 Highest month end balance during period 985,500 897,000 630,000 Weighted-average interest rate at end of period 0.39 % 2.06 % 2.67 % Weighted-average interest rate during the period 1.39 2.59 2.23 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of 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 To Be “Well Capitalized” Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio December 31, 2020 Total Capital (to Risk-Weighted Assets): Corporation $539,496 13.51 % $319,532 8.00 % N/A N/A Bank 534,288 13.38 319,503 8.00 $399,379 10.00 % Tier 1 Capital (to Risk-Weighted Assets): Corporation 503,791 12.61 239,649 6.00 N/A N/A Bank 498,583 12.48 239,627 6.00 319,503 8.00 Common Equity Tier 1 Capital (to Risk-Weighted Assets): Corporation 481,792 12.06 179,737 4.50 N/A N/A Bank 498,583 12.48 179,721 4.50 259,596 6.50 Tier 1 Capital (to Average Assets): (1) Corporation 503,791 8.95 225,209 4.00 N/A N/A Bank 498,583 8.86 225,126 4.00 281,407 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) | 12 Months Ended |
Dec. 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 Consolidated Balance Sheets: (Dollars in thousands) Derivative Assets Derivative Liabilities Fair Value Fair Value Balance Sheet Location Dec 31, Dec 31, Balance Sheet Location Dec 31, Dec 31, 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 1,958 730 Interest rate floors Other assets — 3 Other liabilities — — Derivatives not Designated as Hedging Instruments: Loan related derivative contracts: Interest rate swaps with customers Other assets 75,804 27,736 Other liabilities 68 358 Mirror swaps with counterparties Other assets 67 351 Other liabilities 76,248 27,819 Risk participation agreements Other assets 22 1 Other liabilities 2 1 Mortgage loan commitments: Interest rate lock commitments Other assets 7,202 1,097 Other liabilities — — Forward sale commitments Other assets — 30 Other liabilities 2,914 827 Gross amounts 83,095 29,218 81,190 29,735 Less: amounts offset ( 1) 67 354 67 354 Derivative balances, net of offset 83,028 28,864 81,123 29,381 Less: collateral pledged (2) — — 74,698 27,105 Net amounts $83,028 $28,864 $6,425 $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 Consolidated Statements of Changes in Shareholders’ Equity and Consolidated Statements of Income: (Dollars in thousands) Gain (Loss) Recognized in Other Comprehensive Income, Net of Tax Years ended December 31, 2020 2019 2018 Derivatives Designated as Cash Flow Hedging Instruments: Interest rate risk management contracts: Interest rate caps $89 $52 $30 Interest rate swaps (893) (1,232) 515 Interest rate floors 150 196 74 Total ($654) ($984) $619 For derivatives designated as cash flow hedging instruments, see Note 20 for additional disclosure pertaining to the amounts and location of reclassifications from accumulated other comprehensive income (loss) into earnings. (Dollars in thousands) Amount of Gain (Loss) Years ended December 31, Statement of Income Location 2020 2019 2018 Derivatives not Designated as Hedging Instruments: Loan related derivative contracts: Interest rate swaps with customers Loan related derivative income $60,938 $29,910 ($290) Mirror swaps with counterparties Loan related derivative income (57,067) (26,043) 2,709 Risk participation agreements Loan related derivative income 120 97 (27) Foreign exchange contracts Loan related derivative income — 28 69 Mortgage loan commitments: Interest rate lock commitments Mortgage banking revenues 6,106 290 (139) Forward sale commitments Mortgage banking revenues (10,769) (1,818) 997 Total ($672) $2,464 $3,319 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 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) December 31, 2020 2019 Aggregate fair value $61,614 $27,833 Aggregate principal balance 59,313 27,168 Difference between fair value and principal balance $2,301 $665 |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the balances of assets and liabilities reported at fair value on a recurring basis: (Dollars in thousands) Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2020 Assets: Available for sale debt securities: Obligations of U.S. government-sponsored enterprises $131,669 $— $131,669 $— Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises 740,305 — 740,305 — Individual name issuer trust preferred debt securities 12,669 — 12,669 — Corporate bonds 9,928 — 9,928 — Mortgage loans held for sale 61,614 — 61,614 — Derivative assets 83,028 — 83,028 — Total assets at fair value on a recurring basis $1,039,213 $— $1,039,213 $— Liabilities: Derivative liabilities $81,123 $— $81,123 $— Total liabilities at fair value on a recurring basis $81,123 $— $81,123 $— (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 $— |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | The following table presents the carrying value of assets held at December 31, 2020, which were written down to fair value during the year ended December 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 loans $1,720 $— $— $1,720 Loan servicing rights 7,434 — — 7,434 Total assets at fair value on a nonrecurring basis $9,154 $— $— $9,154 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 |
Qualitative Information About Level 3 Assets Measured at Fair Value on a Nonrecurring Basis | The following tables present valuation techniques and unobservable inputs for assets measured at fair value on a nonrecurring basis for which the Corporation has utilized Level 3 inputs to determine fair value: (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Range of Inputs Utilized (Weighted Average) December 31, 2020 Collateral dependent individually analyzed loans $1,720 Appraisals of collateral Discount for costs to sell 0% - 25% (11%) Appraisal adjustments 0% - 100% (15%) Loan servicing rights 7,434 Discounted Cash Flow Discount Rate 10% - 14% (10%) Prepayment rates 18% - 42% (21%) (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 0% - 100% (67%) Property acquired through foreclosure or repossession 1,109 Appraisals of collateral Discount for costs to sell 12% Appraisal adjustments 22% |
Carrying Amounts, Estimated Fair Values and Fair Value Hierarchy 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) Carrying Amount Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2020 Financial Assets: Loans, net of allowance for credit losses on loans $4,151,884 $4,114,628 $— $— $4,114,628 Financial Liabilities: Time deposits $1,296,396 $1,302,128 $— $1,302,128 $— FHLB advances 593,859 602,000 — 602,000 — Junior subordinated debentures 22,681 19,422 — 19,422 — (Dollars in thousands) Carrying Amount Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs December 31, 2019 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) | 12 Months Ended |
Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | The following table summarizes total revenues as presented in the Consolidated Statements of Income and the related amounts which are from contracts with customers within the scope of ASC 606. As shown below, a substantial portion of our revenues are specifically excluded from the scope of ASC 606. Years ended December 31, 2020 2019 2018 (Dollars in thousands) Revenue (1) ASC 606 Revenue (2) Revenue (1) ASC 606 Revenue (2) Revenue (1) ASC 606 Revenue (2) Net interest income $127,444 $— $133,414 $— $132,290 $— Noninterest income: Asset-based wealth management revenues 34,363 34,363 35,806 35,806 37,343 37,343 Transaction-based wealth management revenues 1,091 1,091 1,042 1,042 998 998 Total wealth management revenues 35,454 35,454 36,848 36,848 38,341 38,341 Mortgage banking revenues 47,377 — 14,795 — 10,381 — Card interchange fees 4,287 4,287 4,214 4,214 3,768 3,768 Service charges on deposit accounts 2,742 2,742 3,684 3,684 3,628 3,628 Loan related derivative income 3,991 — 3,993 — 2,461 — Income from bank-owned life insurance 2,491 — 2,354 — 2,196 — Net realized losses on securities — — (53) — — — Other income 3,100 2,669 1,245 1,184 1,339 1,329 Total noninterest income 99,442 45,152 67,080 45,930 62,114 47,066 Total revenues $226,886 $45,152 $200,494 $45,930 $194,404 $47,066 (1) As reported in the Consolidated Statements of Income. (2) Revenue from contracts with customers in scope of ASC 606. The following table presents revenue from contracts with customers based on the timing of revenue recognition: (Dollars in thousands) Years ended December 31, 2020 2019 2018 Revenue recognized at a point in time: Card interchange fees $4,287 $4,214 $3,768 Service charges on deposit accounts 2,103 2,850 2,802 Other income 2,494 989 958 Revenue recognized over time: Wealth management revenues 35,454 36,848 38,341 Service charges on deposit accounts 639 834 826 Other income 175 195 371 Total revenues from contracts in scope of ASC 606 $45,152 $45,930 $47,066 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Projected Benefit Obligations, Fair Value of Plan Assets and Funded (Unfunded) Status | The following table presents the plans’ projected benefit obligations, fair value of plan assets and funded (unfunded) status: (Dollars in thousands) Qualified Non-Qualified At December 31, 2020 2019 2020 2019 Change in Benefit Obligation: Benefit obligation at beginning of period $83,141 $73,380 $16,438 $14,626 Service cost 2,164 2,037 170 126 Interest cost 2,505 2,967 465 563 Actuarial loss 10,378 10,453 1,803 2,028 Benefits paid (3,334) (5,546) (903) (905) Administrative expenses (112) (150) — — Benefit obligation at end of period 94,742 83,141 17,973 16,438 Change in Plan Assets: Fair value of plan assets at beginning of period 93,749 86,180 — — Actual return on plan assets 11,626 13,265 — — Employer contributions — — 903 905 Benefits paid (3,334) (5,546) (903) (905) Administrative expenses (112) (150) — — Fair value of plan assets at end of period 101,929 93,749 — — Funded (unfunded) status at end of period $7,187 $10,608 ($17,973) ($16,438) |
Schedule of Components of Accumulated Other Comprehensive Income (Loss) Related to Retirements Plans | The following table presents the amounts included in accumulated other comprehensive income (“AOCI”) related to the qualified pension plan and non-qualified retirement plans: (Dollars in thousands) Qualified Non-Qualified At December 31, 2020 2019 2020 2019 Net actuarial loss included in AOCI, pre-tax $12,051 $10,343 $8,648 $7,405 |
Schedule of Net Periodic Benefit Costs and Other Amounts Recognized in Other Comprehensive Income (Loss) | The following table presents components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss), on a pre-tax basis: (Dollars in thousands) Qualified Non-Qualified Years ended December 31, 2020 2019 2018 2020 2019 2018 Net Periodic Benefit Cost: Service cost (1) $2,164 $2,037 $2,244 $170 $126 $108 Interest cost (2) 2,505 2,967 2,715 465 563 475 Expected return on plan assets (2) (4,538) (4,495) (5,272) — — — Amortization of prior service credit (2) — (16) (23) — — (1) Recognized net actuarial loss (2) 1,582 792 1,496 560 408 411 Net periodic benefit cost 1,713 1,285 1,160 1,195 1,097 993 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (on a pre-tax basis): Net loss (gain) 1,708 890 (4,342) 1,244 1,620 (663) Prior service credit — 16 23 — — 1 Recognized in other comprehensive income (loss) 1,708 906 (4,319) 1,244 1,620 (662) Total recognized in net periodic benefit cost and other comprehensive income (loss) $3,421 $2,191 ($3,159) $2,439 $2,717 $331 (1) Included in salaries and employee benefits expense in the Consolidated Statements of Income. (2) Included in other expenses in the 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 benefit obligations at December 31, 2020 and 2019: Qualified Non-Qualified Retirement Plans 2020 2019 2020 2019 Measurement date Dec 31, 2020 Dec 31, 2019 Dec 31, 2020 Dec 31, 2019 Discount rate 2.71 % 3.42 % 2.50 % 3.30 % Rate of compensation increase 3.75 3.75 3.75 3.75 The following table presents the measurement date and weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31, 2020, 2019 and 2018: Qualified Pension Plan Non-Qualified Retirement Plans 2020 2019 2018 2020 2019 2018 Measurement date Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Equivalent single discount rate for benefit obligations 3.42 % 4.38 % 3.69 % 3.30 % 4.28 % 3.58 % Equivalent single discount rate for service cost 3.54 4.44 3.76 3.62 4.48 3.79 Equivalent single discount rate for interest cost 3.07 4.12 3.42 2.93 3.98 3.22 Expected long-term return on plan assets 5.75 5.75 6.75 N/A N/A N/A Rate of compensation increase 3.75 3.75 3.75 3.75 3.75 3.75 |
Schedule of Fair Value and Allocation of Plan Assets | The following tables present the fair values of the qualified pension plan’s assets: (Dollars in thousands) Fair Value Measurements Using Assets at December 31, 2020 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $14,427 $— $— $14,427 Obligations of U.S. government-sponsored enterprises — 29,449 — 29,449 Obligations of states and political subdivisions — 2,327 — 2,327 Corporate bonds — 9,211 — 9,211 Common stocks 17,150 — — 17,150 Mutual funds 29,365 — — 29,365 Total plan assets $60,942 $40,987 $— $101,929 (Dollars in thousands) Fair Value Measurements Using Assets at December 31, 2019 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $9,902 $— $— $9,902 Obligations of U.S. government-sponsored enterprises — 28,615 — 28,615 Obligations of states and political subdivisions — 2,998 — 2,998 Corporate bonds — 10,033 — 10,033 Common stocks 14,593 — — 14,593 Mutual funds 27,608 — — 27,608 Total plan assets $52,103 $41,646 $— $93,749 The following table presents the asset allocations of the qualified pension plan, by asset category: December 31, 2020 2019 Asset Category: Cash and cash equivalents 14.2 % 10.6 % Fixed income securities (1) 40.2 44.4 Equity securities (2) 45.6 45.0 Total 100.0 % 100.0 % (1) Includes obligations of U.S. government agencies and U.S. government-sponsored enterprises, obligations of states and political subdivisions and corporate bonds. (2) Includes common stocks and mutual funds. |
Schedule of Expected Future Benefit Payments | The following table presents the benefit payments, which reflect expected future service, as appropriate, expected to be paid: (Dollars in thousands) Qualified Non-Qualified Years ending December 31, 2021 $5,608 $896 2022 4,255 886 2023 4,804 881 2024 4,830 874 2025 6,096 871 2026 and thereafter 27,942 4,460 |
Share-Based Compensation Arra_2
Share-Based Compensation Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Compensation Cost for Share-based Compensation Arrangements | The following table presents share-based compensation expense and the related income tax benefits recognized in the Consolidated Statements of Income for stock options, nonvested share units and nonvested performance share units: (Dollars in thousands) Years ended December 31, 2020 2019 2018 Share-based compensation expense $3,766 $3,124 $2,602 Related income tax benefits (1) $801 $982 $1,108 (1) Includes $103 thousand of excess tax expenses recognized upon the settlement of share-based compensation awards in 2020. Includes $248 thousand and $496 thousand, respectively, of excess tax benefits recognized upon the settlement of share-based compensation awards in 2019 and 2018. |
Stock Options Fair Value Assumptions | The following presents the assumptions used in determining the grant date fair value of the stock option awards granted to certain key employees: 2020 2019 2018 Options granted 81,530 61,800 47,950 Cliff vesting period (years) 3 3 3 Expected term (years) 6.5 6.5 6.5 Expected dividend yield 3.69 % 3.40 % 3.39 % Weighted average expected volatility 29.89 % 23.05 % 22.73 % Weighted average risk-free interest rate 0.46 % 1.71 % 3.14 % Weighted average grant-date fair value $5.75 $7.44 $9.74 |
Stock Options Activity | The following table presents a summary of the status of Washington Trust’s stock options outstanding as of and for the year ended December 31, 2020: Number of Stock Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (000’s) Beginning of period 248,815 $45.38 Granted 81,530 32.23 Exercised (4,100) 17.52 Forfeited or expired — — End of period 326,245 $42.44 7.23 $2,011 At end of period: Options exercisable 134,965 $41.40 4.77 $986 Options expected to vest in future periods 191,280 $43.18 8.97 $1,025 |
Schedule of Stock Options Outstanding and Options Exercisable | The following table presents additional information concerning options outstanding and options exercisable at December 31, 2020: Options Outstanding Options Exercisable Exercise Price Ranges Number of Weighted Average Weighted Average Number of Shares Weighted Average $20.01 to $30.00 22,015 1.14 22.89 22,015 22.89 $30.01 to $40.00 123,405 7.82 33.57 41,875 36.17 $40.01 to $50.00 93,050 7.79 45.83 31,250 40.25 $50.01 to $60.00 87,775 7.34 56.24 39,825 58.05 Total 326,245 7.23 $42.44 134,965 $41.40 |
Nonvested Shares Units Activity | The following table presents a summary of the status of Washington Trust’s nonvested share units as of and for the year ended December 31, 2020: Number of Shares Weighted Average Grant Date Fair Value Beginning of period 53,890 $52.01 Granted 27,385 35.38 Vested (15,160) 53.39 Forfeited — — End of period 66,115 $44.80 |
Performance Share Units Outstanding | The following table presents a summary of the performance share unit awards as of December 31, 2020: Grant Date Fair Value per Share Weighted Average Current Performance Assumption Expected Number of Shares Performance share units awarded in: 2020 $34.22 140% 65,632 2019 52.84 148% 46,320 2018 54.25 150% 44,415 Total 156,367 |
Performance Share Units Activity | The following table presents a summary of the status of Washington Trust’s performance share units as of and for the year ended December 31, 2020: Number of Shares Weighted Average Grant Date Fair Value Beginning of period 108,964 $53.16 Granted 71,007 35.70 Vested (23,604) 51.85 Forfeited — — End of period 156,367 $45.43 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Statement of Operations and Total Assets by Reportable Segment | The following tables present the statement of operations and total assets for Washington Trust’s reportable segments: (Dollars in thousands) Year ended December 31, 2020 Commercial Wealth Corporate Consolidated Net interest income (expense) $128,600 ($141) ($1,015) $127,444 Provision for credit losses 12,342 — — 12,342 Net interest income (expense) after provision for credit losses 116,258 (141) (1,015) 115,102 Noninterest income 61,463 35,454 2,525 99,442 Noninterest expenses: Depreciation and amortization expense 2,512 1,412 166 4,090 Other noninterest expenses 77,157 27,367 16,770 121,294 Total noninterest expenses 79,669 28,779 16,936 125,384 Income (loss) before income taxes 98,052 6,534 (15,426) 89,160 Income tax expense (benefit) 21,216 1,746 (3,631) 19,331 Net income (loss) $76,836 $4,788 ($11,795) $69,829 Total assets at period end $4,501,875 $74,958 $1,136,336 $5,713,169 Expenditures for long-lived assets 3,097 158 151 3,406 (Dollars in thousands) Year ended December 31, 2019 Commercial Wealth Corporate Consolidated Net interest income (expense) $112,414 ($438) $21,438 $133,414 Provision for loan losses 1,575 — — 1,575 Net interest income (expense) after provision for loan losses 110,839 (438) 21,438 131,839 Noninterest income 27,857 36,856 2,367 67,080 Noninterest expenses: Depreciation and amortization expense 2,630 1,445 159 4,234 Other noninterest expenses 66,517 26,057 13,932 106,506 Total noninterest expenses 69,147 27,502 14,091 110,740 Income before income taxes 69,549 8,916 9,714 88,179 Income tax expense 15,189 2,308 1,564 19,061 Net income $54,360 $6,608 $8,150 $69,118 Total assets at period end $4,070,594 $74,990 $1,147,075 $5,292,659 Expenditures for long-lived assets 2,521 445 166 3,132 (Dollars in thousands) Year ended December 31, 2018 Commercial Wealth Corporate Consolidated Net interest income (expense) $106,668 ($334) $25,956 $132,290 Provision for loan losses 1,550 — — 1,550 Net interest income (expense) after provision for loan losses 105,118 (334) 25,956 130,740 Noninterest income 21,509 38,341 2,264 62,114 Noninterest expenses: Depreciation and amortization expense 2,589 1,501 171 4,261 Other noninterest expenses 62,673 26,222 13,006 101,901 Total noninterest expenses 65,262 27,723 13,177 106,162 Income before income taxes 61,365 10,284 15,043 86,692 Income tax expense 13,149 2,577 2,534 18,260 Net income $48,216 $7,707 $12,509 $68,432 Total assets at period end $3,804,021 $71,254 $1,135,491 $5,010,766 Expenditures for long-lived assets 3,415 407 152 3,974 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Activity in Other Comprehensive Income (Loss) | The following tables present the activity in other comprehensive income (loss): (Dollars in thousands) Year ended December 31, 2020 Pre-tax Amounts Income Taxes Net of Tax Securities available for sale: Changes in fair value of available for sale debt securities $8,784 $2,129 $6,655 Net (gains) losses on securities reclassified into earnings — — — Net change in fair value of available for sale debt securities 8,784 2,129 6,655 Cash flow hedges: Changes in fair value of cash flow hedges (2,003) (482) (1,521) Net cash flow hedge losses reclassified into earnings (1) 1,136 269 867 Net change in the fair value of cash flow hedges (867) (213) (654) Defined benefit plan obligations: Defined benefit plan obligation adjustment (5,093) (1,197) (3,896) Amortization of net actuarial losses (2) 2,141 400 1,741 Amortization of net prior service credits (2) — — — Net change in defined benefit plan obligations (2,952) (797) (2,155) Total other comprehensive income $4,965 $1,119 $3,846 (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 Consolidated Statements of Income. (2) The pre-tax amounts are included in other expenses in the Consolidated Statements of Income. (Dollars in thousands) Year ended December 31, 2019 Pre-tax Amounts Income Taxes Net of Tax Securities available for sale: Changes in fair value of available for sale debt securities $26,074 $6,127 $19,947 Net losses on securities reclassified into earnings (1) 53 12 41 Net change in fair value of available for sale debt securities 26,127 6,139 19,988 Cash flow hedges: Changes in fair value of cash flow hedges (1,444) (339) (1,105) Net cash flow hedge losses reclassified into earnings (2) 159 38 121 Net change in the fair value of cash flow hedges (1,285) (301) (984) Defined benefit plan obligations: Defined benefit plan obligation adjustment (3,710) (872) (2,838) Amortization of net actuarial losses (3) 1,200 282 918 Amortization of net prior service credits (3) (16) (4) (12) Net change in defined benefit plan obligations (2,526) (594) (1,932) Total other comprehensive loss $22,316 $5,244 $17,072 (1) The pre-tax amount is reported as net realized losses on securities in the Consolidated Statements of Income. (2) 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 Consolidated Statements of Income. (3) The pre-tax amounts are included in other expenses in the Consolidated Statements of Income. (Dollars in thousands) Year ended December 31, 2018 Pre-tax Amounts Income Taxes Net of Tax Securities available for sale: Changes in fair value of available for sale debt securities ($12,063) ($2,835) ($9,228) Net (gains) losses on securities reclassified into earnings — — — Net change in fair value of available for sale debt securities (12,063) (2,835) (9,228) Cash flow hedges: Changes in fair value of cash flow hedges 639 151 488 Net cash flow hedge losses reclassified into earnings (1) 170 39 131 Net change in the fair value of cash flow hedges 809 190 619 Defined benefit plan obligations: Defined benefit plan obligation adjustment 3,098 729 2,369 Amortization of net actuarial losses (2) 1,907 448 1,459 Amortization of net prior service credits (2) (24) (6) (18) Net change in defined benefit plan obligations 4,981 1,171 3,810 Total other comprehensive income ($6,273) ($1,474) ($4,799) (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 Consolidated Statements of Income. (2) The pre-tax amounts are included in other expenses in the Consolidated Statements of Income. |
Changes in Components of Accumulated Other Comprehensive Income (Loss) | The following tables present the changes in accumulated other comprehensive income (loss) by component, net of tax: (Dollars in thousands) Net Unrealized Gains on Available For Sale Debt Securities Net Unrealized (Losses) Gains on Cash Flow Hedges Defined Benefit Pension Plan Adjustment Total Balance at December 31, 2019 $3,226 ($793) ($13,670) ($11,237) Other comprehensive income (loss) before reclassifications 6,655 (1,521) (3,896) 1,238 Amounts reclassified from accumulated other comprehensive income — 867 1,741 2,608 Net other comprehensive income (loss) 6,655 (654) (2,155) 3,846 Balance at December 31, 2020 $9,881 ($1,447) ($15,825) ($7,391) (Dollars in thousands) Net Unrealized (Losses) Gains on Available For Sale Debt Securities Net Unrealized Gains (Losses) on Cash Flow Hedges Defined Benefit Pension Plan Adjustment Total Balance at December 31, 2018 ($16,762) $191 ($11,738) ($28,309) Other comprehensive income (loss) before reclassifications 19,947 (1,105) (2,838) 16,004 Amounts reclassified from accumulated other comprehensive income 41 121 906 1,068 Net other comprehensive income (loss) 19,988 (984) (1,932) 17,072 Balance at December 31, 2019 $3,226 ($793) ($13,670) ($11,237) (Dollars in thousands) Net Unrealized Losses on Available For Sale Debt Securities Net Unrealized (Losses) Gains on Cash Flow Hedges Defined Benefit Pension Plan Adjustment Total Balance at December 31, 2017 ($7,534) ($428) ($15,548) ($23,510) Other comprehensive (loss) income before reclassifications (9,228) 488 2,369 (6,371) Amounts reclassified from accumulated other comprehensive income — 131 1,441 1,572 Net other comprehensive (loss) income (9,228) 619 3,810 (4,799) Balance at December 31, 2018 ($16,762) $191 ($11,738) ($28,309) |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Calculation of Earnings Per Common Share | The following table presents the calculation of earnings per common share: (Dollars and shares in thousands, except per share amounts) Years ended December 31, 2020 2019 2018 Earnings per common share - basic: Net income $69,829 $69,118 $68,432 Less: dividends and undistributed earnings allocated to participating securities (152) (139) (144) Net income available to common shareholders $69,677 $68,979 $68,288 Weighted average common shares 17,282 17,331 17,272 Earnings per common share - basic $4.03 $3.98 $3.95 Earnings per common share - diluted: Net income $69,829 $69,118 $68,432 Less: dividends and undistributed earnings allocated to participating securities (151) (139) (144) Net income available to common shareholders $69,678 $68,979 $68,288 Weighted average common shares 17,282 17,331 17,272 Dilutive effect of common stock equivalents 120 83 119 Weighted average diluted common shares 17,402 17,414 17,391 Earnings per common share - diluted $4.00 $3.96 $3.93 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 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) December 31, 2020 2019 Financial instruments whose contract amounts represent credit risk: Commitments to extend credit: Commercial loans $453,493 $471,338 Home equity lines 319,744 295,687 Other loans 89,078 88,613 Standby letters of credit 11,709 13,710 Financial instruments whose notional amounts exceed the amount of credit risk: Mortgage loan commitments: Interest rate lock commitments 167,671 51,439 Forward sale commitments 279,653 94,829 Loan related derivative contracts: Interest rate swaps with customers 991,002 813,458 Mirror swaps with counterparties 991,002 813,458 Risk participation-in agreements 92,717 72,866 Interest rate risk management contracts: Interest rate swaps 60,000 60,000 |
Allowance for Credit Losses on Unfunded Commitment | The activity in the ACL on unfunded commitments for the year ended December 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 ASC 326 817 626 1,443 34 — 6 6 1,483 Provision (46) 632 586 14 — 6 6 606 Ending Balance $907 $1,402 $2,309 $54 $— $19 $19 $2,382 |
Parent Company Financial Stat_2
Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Balance Sheet | The following tables present parent company only financial statements of the Bancorp, reflecting the investment in the Bank on the equity basis of accounting. The Statements of Changes in Shareholders’ Equity for the parent company only are identical to the Consolidated Statements of Changes in Shareholders’ Equity and are therefore not presented. Balance Sheets (Dollars in thousands, except par value) December 31, 2020 2019 Assets: Cash on deposit with bank subsidiary $1,658 $1,838 Investment in subsidiaries at equity value: Bank 550,986 521,969 Non-bank 1,904 1,882 Dividends receivable from bank subsidiary 11,836 9,575 Other assets 124 232 Total assets $566,508 $535,496 Liabilities: Junior subordinated debentures $22,681 $22,681 Dividends payable 9,592 9,252 Other liabilities 40 71 Total liabilities 32,313 32,004 Shareholders’ Equity: Common stock of $.0625 par value; authorized 60,000,000 shares; 17,363,457 shares issued and 17,265,337 shares outstanding at December 31, 2020 and 17,363,455 shares issued and outstanding at December 31, 2019 1,085 1,085 Paid-in capital 125,610 123,281 Retained earnings 418,246 390,363 Accumulated other comprehensive loss (7,391) (11,237) Treasury stock, at cost; 98,120 shares at December 31, 2020 (3,355) — Total shareholders’ equity 534,195 503,492 Total liabilities and shareholders’ equity $566,508 $535,496 |
Parent Company Only Income Statement | Statements of Income (Dollars in thousands) Years ended December 31, 2020 2019 2018 Income: Dividends from subsidiaries: Bank $43,139 $36,796 $32,394 Non-bank 17 27 24 Total income 43,156 36,823 32,418 Expenses: Interest on junior subordinated debentures 641 980 869 Legal and professional fees 210 147 187 Change in fair value of contingent consideration — — (187) Other 349 337 324 Total expenses 1,200 1,464 1,193 Income before income taxes 41,956 35,359 31,225 Income tax benefit 248 301 284 Income before equity in undistributed earnings of subsidiaries 42,204 35,660 31,509 Equity in undistributed earnings of subsidiaries: Bank 27,603 33,445 36,876 Non-bank 22 13 47 Net income $69,829 $69,118 $68,432 |
Parent Company Only Cash Flow Statement | Statements of Cash Flows (Dollars in thousands) Years ended December 31, 2020 2019 2018 Cash flows from operating activities: Net income $69,829 $69,118 $68,432 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiaries: Bank (27,603) (33,445) (36,876) Non-bank (22) (13) (47) (Increase) decrease in dividend receivable (2,261) (1,813) 8 Decrease (increase) in other assets 109 (43) 70 (Decrease) increase in accrued expenses and other liabilities (31) (15) 17 Change in fair value of contingent consideration liability — — (187) Tax (expense) benefit from stock option exercises and other equity awards (103) 248 496 Other, net 193 (195) (465) Net cash provided by operating activities 40,111 33,842 31,448 Cash flows from financing activities: Payment of contingent consideration liability — — (1,217) Treasury stock purchased (4,322) — — Net proceeds from stock option exercises and issuance of other equity awards, net of awards surrendered (470) 273 (671) Cash dividends paid (35,499) (34,189) (29,312) Net cash used in financing activities (40,291) (33,916) (31,200) Net (decrease) increase in cash (180) (74) 248 Cash at beginning of year 1,838 1,912 1,664 Cash at end of year $1,658 $1,838 $1,912 |
Selected Quarterly Consolidat_2
Selected Quarterly Consolidated Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Consolidated Financial Data (Unaudited) | (Dollars and shares in thousands, except per share amounts) 2020 First Quarter Second Quarter Third Quarter Fourth Quarter Interest and dividend income $47,116 $42,612 $40,834 $39,374 Interest expense 14,514 11,667 9,180 7,131 Net interest income 32,602 30,945 31,654 32,243 Provision for credit losses 7,036 2,200 1,325 1,781 Net interest income after provision for credit losses 25,566 28,745 30,329 30,462 Noninterest income 19,927 26,320 25,468 27,727 Noninterest expense 30,453 28,478 32,344 34,109 Income before income taxes 15,040 26,587 23,453 24,080 Income tax expense 3,139 5,547 5,131 5,514 Net income $11,901 $21,040 $18,322 $18,566 Net income available to common shareholders $11,869 $21,000 $18,285 $18,524 Weighted average common shares outstanding - basic 17,345 17,257 17,260 17,264 Weighted average common shares outstanding - diluted 17,441 17,292 17,317 17,360 Per share information: Basic earnings per common share $0.68 $1.22 $1.06 $1.07 Diluted earnings per common share $0.68 $1.21 $1.06 $1.07 Cash dividends declared per share $0.51 $0.51 $0.51 $0.52 (Dollars and shares in thousands, except per share amounts) 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Interest and dividend income $50,194 $50,559 $49,527 $47,383 Interest expense 15,610 16,701 16,549 15,389 Net interest income 34,584 33,858 32,978 31,994 Provision for loan losses 650 525 400 — Net interest income after provision for loan losses 33,934 33,333 32,578 31,994 Noninterest income 15,367 16,753 18,342 16,618 Noninterest expense 26,964 28,151 26,870 28,755 Income before income taxes 22,337 21,935 24,050 19,857 Income tax expense 4,842 4,662 5,236 4,321 Net income $17,495 $17,273 $18,814 $15,536 Net income available to common shareholders $17,461 $17,238 $18,778 $15,502 Weighted average common shares outstanding - basic 17,304 17,330 17,338 17,351 Weighted average common shares outstanding - diluted 17,401 17,405 17,414 17,436 Per share information: Basic earnings per common share $1.01 $0.99 $1.08 $0.89 Diluted earnings per common share $1.00 $0.99 $1.08 $0.89 Cash dividends declared per share $0.47 $0.51 $0.51 $0.51 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Line Items] | |
Federal Home Loan Bank Stock, redemption period, years after membership termination | 5 years |
Premises and Improvements [Member] | Minimum [Member] | |
Accounting Policies [Line Items] | |
Estimated useful life (in years) | 5 years |
Premises and Improvements [Member] | Maximum [Member] | |
Accounting Policies [Line Items] | |
Estimated useful life (in years) | 40 years |
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | |
Accounting Policies [Line Items] | |
Estimated useful life (in years) | 3 years |
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | |
Accounting Policies [Line Items] | |
Estimated useful life (in years) | 20 years |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Adoption of ASC 326 | $ 6,501 | |||||
Adoption of Topic 326 Unfunded Commitments | 1,483 | |||||
Cumulative effect adjustment to retained earnings | $ 418,246 | $ 390,363 | ||||
Cumulative effect adjustment to retained earnings | 534,195 | 503,492 | $ 448,184 | $ 413,284 | ||
Retained Earnings [Member] | ||||||
Cumulative effect adjustment to retained earnings | $ 418,246 | $ 390,363 | $ 355,524 | $ 317,756 | ||
Unfunded Loan Commitment [Member] | ||||||
Adoption of Topic 326 Unfunded Commitments | 1,500 | |||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||
Tax impact of cumulative effect adjustment to retained earnings | 1,900 | |||||
Accounting Standards Update 2016-02 [Member] | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Cumulative effect adjustment to retained earnings | $ 722 | |||||
Accounting Standards Update 2016-02 [Member] | Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings [Member] | ||||||
Cumulative effect adjustment to retained earnings | $ 722 | |||||
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Cumulative effect adjustment to retained earnings | (6,108) | |||||
Accounting Standards Update 2016-13 [Member] | Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings [Member] | ||||||
Cumulative effect adjustment to retained earnings | $ (6,108) |
Cash and Due from Banks (Narrat
Cash and Due from Banks (Narrative) (Details) - USD ($) $ in Millions | Dec. 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 | $ 138.4 | $ 83.4 |
Securities (Narrative) (Details
Securities (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security | |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Accrued interest receivable | $ 2,400 | $ 2,900 |
Securities available for sale and held to maturity pledged as collateral, fair value | 291,900 | $ 431,900 |
Amortized cost of callable debt securities | 154,400 | |
Fair value of callable debt securities | $ 152,900 | |
Number of securities in a continuous unrealized loss position total | security | 30 | 41 |
Unrealized losses of securities in a continuous unrealized loss position total | $ 2,569 | $ 4,900 |
Minimum [Member] | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Callable debt securities, maturity period | 3 years | |
Callable debt securities, call feature period | 1 month | |
Maximum [Member] | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Callable debt securities, maturity period | 16 years | |
Callable debt securities, call feature period | 2 years | |
Individual name issuer trust preferred debt securities [Member] | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Number of securities in a continuous unrealized loss position total | security | 5 | 5 |
Number of companies issuing securities in continuous unrealized loss position | security | 4 | |
Amortized cost of trust preferred securities of individual name issuers that are below investment grade | $ 4,000 | |
Unrealized losses of trust preferred securities of individual name issuers that are below investment grade | (266) | |
Unrealized losses of securities in a continuous unrealized loss position total | $ 672 | $ 745 |
Corporate bonds [Member] | ||
Schedule of Available for Sale and Held to Maturity 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 | $ 1,225 | $ 958 |
Securities (Summary of Investme
Securities (Summary of Investments) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Available for sale securities amortized cost | $ 881,570 | $ 895,273 |
Available for sale securities unrealized gains | 15,570 | 9,117 |
Available for sale securities unrealized losses | (2,569) | (4,900) |
Available for sale debt securities | 894,571 | 899,490 |
Available for sale securities amortized cost | 881,570 | |
Allowance for credit losses on securities | 0 | |
Obligations of U.S. government-sponsored enterprises [Member] | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Available for sale securities amortized cost | 131,186 | 157,255 |
Available for sale securities unrealized gains | 628 | 626 |
Available for sale securities unrealized losses | (145) | (233) |
Available for sale debt securities | 131,669 | 157,648 |
Allowance for credit losses on securities | 0 | |
Mortgage-backed securities issued by U.S. government-sponsored agencies and U.S. government-sponsored enterprises [Member] | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Available for sale securities amortized cost | 725,890 | 713,553 |
Available for sale securities unrealized gains | 14,942 | 8,491 |
Available for sale securities unrealized losses | (527) | (2,964) |
Available for sale debt securities | 740,305 | 719,080 |
Allowance for credit losses on securities | 0 | |
Individual name issuer trust preferred debt securities [Member] | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Available for sale securities amortized cost | 13,341 | 13,324 |
Available for sale securities unrealized gains | 0 | 0 |
Available for sale securities unrealized losses | (672) | (745) |
Available for sale debt securities | 12,669 | 12,579 |
Allowance for credit losses on securities | 0 | |
Corporate bonds [Member] | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Available for sale securities amortized cost | 11,153 | 11,141 |
Available for sale securities unrealized gains | 0 | 0 |
Available for sale securities unrealized losses | (1,225) | (958) |
Available for sale debt securities | 9,928 | $ 10,183 |
Allowance for credit losses on securities | $ 0 |
Securities (Securities by Contr
Securities (Securities by Contractual Maturity) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | |
Available for sale debt securities maturities wIthin 1 year amortized cost | $ 128,971 |
Available for sale debt securities maturities 1-5 years amortized cost | 350,859 |
Available for sale debt securities maturities 5-10 years amortized cost | 277,148 |
Available for sale debt securities maturities after 10 years amortized cost | 124,592 |
Available for sale securities amortized cost | 881,570 |
Available for sale debt securities maturities within 1 year fair value | 131,519 |
Available for sale debt securities maturities 1-5 years fair value | 357,148 |
Available for sale debt securities maturities 5-10 years fair value | 279,859 |
Available for sale debt securities maturities after 10 years fair value | 126,045 |
Available for sale debt securities fair value | $ 894,571 |
Securities (Schedule of Amounts
Securities (Schedule of Amounts from Sales of Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Gain (Loss) on Securities [Line Items] | ||||
Proceeds from sales | $ 0 | $ 11,877 | $ 0 | |
Gross realized gains | 0 | 0 | 0 | |
Gross realized losses | 0 | (53) | 0 | |
Net realized losses on securities | [1] | $ 0 | $ (53) | $ 0 |
[1] | As reported in the Consolidated Statements of Income. |
Securities (Securities in a Con
Securities (Securities in a Continuous Unrealized Loss Position) (Details) $ in Thousands | Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security |
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Number of securities in a continuous unrealized loss position for less than 12 months | security | 22 | 7 |
Fair value of securities in a continuous unrealized loss position for less than 12 months | $ 171,139 | $ 61,514 |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | $ (672) | $ (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 | $ 22,597 | $ 289,468 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | $ (1,897) | $ (4,708) |
Number of securities in a continuous unrealized loss position total | security | 30 | 41 |
Fair value of securities in a continuous unrealized loss position total | $ 193,736 | $ 350,982 |
Unrealized losses of securities in a continuous unrealized loss position total | $ (2,569) | $ (4,900) |
Obligations of U.S. government-sponsored enterprises [Member] | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Number of securities in a continuous unrealized loss position for less than 12 months | security | 6 | 3 |
Fair value of securities in a continuous unrealized loss position for less than 12 months | $ 63,856 | $ 20,364 |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | $ (145) | $ (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 | 6 | 6 |
Fair value of securities in a continuous unrealized loss position total | $ 63,856 | $ 70,266 |
Unrealized losses of securities in a continuous unrealized loss position total | $ (145) | $ (233) |
Mortgage-backed securities issued by U.S. government-sponsored agencies and U.S. government-sponsored enterprises [Member] | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Number of securities in a continuous unrealized loss position for less than 12 months | security | 16 | 4 |
Fair value of securities in a continuous unrealized loss position for less than 12 months | $ 107,283 | $ 41,150 |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | $ (527) | $ (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 | 16 | 27 |
Fair value of securities in a continuous unrealized loss position total | $ 107,283 | $ 257,954 |
Unrealized losses of securities in a continuous unrealized loss position total | $ (527) | $ (2,964) |
Individual name issuer trust preferred debt securities [Member] | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Number of securities in a continuous unrealized loss position for less than 12 months | security | 0 | 0 |
Fair value of securities in a continuous unrealized loss position for less than 12 months | $ 0 | $ 0 |
Unrealized losses of securities in a continuous unrealized loss position for less than 12 months | $ 0 | $ 0 |
Number of securities in a continuous unrealized loss position for 12 months or longer | security | 5 | 5 |
Fair value of securities in a continuous unrealized loss position for 12 months or longer | $ 12,669 | $ 12,579 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | $ (672) | $ (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 | $ 12,669 | $ 12,579 |
Unrealized losses of securities in a continuous unrealized loss position total | $ (672) | $ (745) |
Corporate bonds [Member] | ||
Schedule of Available for Sale and Held to Maturity Securities [Line Items] | ||
Number of securities in a continuous unrealized loss position for less than 12 months | security | 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 | $ 9,928 | $ 10,183 |
Unrealized losses of securities in a continuous unrealized loss position for 12 months or longer | $ (1,225) | $ (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 | $ 9,928 | $ 10,183 |
Unrealized losses of securities in a continuous unrealized loss position total | $ (1,225) | $ (958) |
Loans (Narrative) (Details)
Loans (Narrative) (Details) $ in Thousands | Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($) | |
Receivables [Abstract] | |||
Carrying value of Payment Protection Program loans | $ 199,800 | ||
Net unamortized loan origination costs | 1,500 | $ 5,300 | |
Net unamortized premiums on purchased loans | 787 | 995 | |
Accrued interest receivable | 11,300 | 11,000 | |
Loans pledged as collateral | $ 2,100,000 | 2,100,000 | |
Number of executed loan modifications due to COVID-19 | loan | 636 | ||
Balance of executed loan modifications due to COVID-19 | $ 717,400 | ||
Number of active deferments due to COVID-19 | loan | 136 | ||
Balance of active deferments due to COVID-19 | $ 244,700 | ||
Nonaccrual loans | 8,500 | 11,500 | |
Nonaccrual loans, no ACL deemed necessary | 3,000 | ||
Residential loans in process of foreclosure | 3,400 | 5,800 | |
Nonaccrual loans current on payment | 4,700 | 5,900 | |
Individually analyzed loans | 18,300 | ||
Total loans | [1] | 4,195,990 | 3,892,999 |
Total loans | [1] | 4,195,990 | $ 3,892,999 |
Collateral Dependent Individually Analyzed [Member] | |||
Receivables [Abstract] | |||
Total loans | 8,444 | ||
Total loans | $ 8,444 | ||
[1] | Includes net unamortized loan origination costs of $1.5 million and $5.3 million, respectively, at December 31, 2020 and 2019 and net unamortized premiums on purchased loans of $787 thousand and $995 thousand, respectively, at December 31, 2020 and 2019. |
Loans (Summary of Loans) (Detai
Loans (Summary of Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | [1] | $ 4,195,990 | $ 3,892,999 |
Commercial Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | [2] | 1,633,024 | 1,547,572 |
Commercial & Industrial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | [3] | 817,408 | 585,289 |
Total Commercial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 2,450,432 | 2,132,861 | |
Residential Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | [4] | 1,467,312 | 1,449,090 |
Home Equity [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 259,185 | 290,874 | |
Other Consumer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | [5] | 19,061 | 20,174 |
Total Consumer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 278,246 | $ 311,048 | |
[1] | Includes net unamortized loan origination costs of $1.5 million and $5.3 million, respectively, at December 31, 2020 and 2019 and net unamortized premiums on purchased loans of $787 thousand and $995 thousand, respectively, at December 31, 2020 and 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 & industrial (“C&I”) consists of loans to businesses and individuals, a portion of which are fully or partially collateralized by real estate. C&I also includes $199.8 million of PPP loans as of December 31, 2020. | ||
[4] | Residential real estate consists of mortgage and homeowner construction loans secured by one- to four-family residential properties. | ||
[5] | Other consists of loans to individuals secured by general aviation aircraft and other personal installment loans. |
Loans (Past Due Loans) (Details
Loans (Past Due Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Past Due [Line Items] | |||
Current | $ 4,183,598 | $ 3,877,310 | |
Total loans | [1] | 4,195,990 | 3,892,999 |
Commercial Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 1,632,759 | 1,546,139 | |
Total loans | [2] | 1,633,024 | 1,547,572 |
Commercial & Industrial [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 817,405 | 585,288 | |
Total loans | [3] | 817,408 | 585,289 |
Total Commercial [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 2,450,164 | 2,131,427 | |
Total loans | 2,450,432 | 2,132,861 | |
Residential Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 1,456,973 | 1,437,661 | |
Total loans | [4] | 1,467,312 | 1,449,090 |
Home Equity [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 257,518 | 288,178 | |
Total loans | 259,185 | 290,874 | |
Other Consumer [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 18,943 | 20,044 | |
Total loans | [5] | 19,061 | 20,174 |
Total Consumer [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Current | 276,461 | 308,222 | |
Total loans | 278,246 | 311,048 | |
30-59 | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 5,649 | 6,418 | |
30-59 | Commercial Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 265 | 830 | |
30-59 | Commercial & Industrial [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 1 | 1 | |
30-59 | Total Commercial [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 266 | 831 | |
30-59 | Residential Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 4,466 | 4,574 | |
30-59 | Home Equity [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 894 | 971 | |
30-59 | Other Consumer [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 23 | 42 | |
30-59 | Total Consumer [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 917 | 1,013 | |
60-89 | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 839 | 2,884 | |
60-89 | Commercial Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 0 | 0 | |
60-89 | Commercial & Industrial [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 2 | 0 | |
60-89 | Total Commercial [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 2 | 0 | |
60-89 | Residential Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 701 | 2,155 | |
60-89 | Home Equity [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 129 | 729 | |
60-89 | Other Consumer [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 7 | 0 | |
60-89 | Total Consumer [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 136 | 729 | |
Over 90 | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 5,904 | 6,387 | |
Over 90 | Commercial Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 0 | 603 | |
Over 90 | Commercial & Industrial [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 0 | 0 | |
Over 90 | Total Commercial [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 0 | 603 | |
Over 90 | Residential Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 5,172 | 4,700 | |
Over 90 | Home Equity [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 644 | 996 | |
Over 90 | Other Consumer [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 88 | 88 | |
Over 90 | Total Consumer [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 732 | 1,084 | |
Total Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 12,392 | 15,689 | |
Total Past Due | Commercial Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 265 | 1,433 | |
Total Past Due | Commercial & Industrial [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 3 | 1 | |
Total Past Due | Total Commercial [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 268 | 1,434 | |
Total Past Due | Residential Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 10,339 | 11,429 | |
Total Past Due | Home Equity [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 1,667 | 2,696 | |
Total Past Due | Other Consumer [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | 118 | 130 | |
Total Past Due | Total Consumer [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Past due | $ 1,785 | $ 2,826 | |
[1] | Includes net unamortized loan origination costs of $1.5 million and $5.3 million, respectively, at December 31, 2020 and 2019 and net unamortized premiums on purchased loans of $787 thousand and $995 thousand, respectively, at December 31, 2020 and 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 & industrial (“C&I”) consists of loans to businesses and individuals, a portion of which are fully or partially collateralized by real estate. C&I also includes $199.8 million of PPP loans as of December 31, 2020. | ||
[4] | Residential real estate consists of mortgage and homeowner construction loans secured by one- to four-family residential properties. | ||
[5] | Other consists of loans to individuals secured by general aviation aircraft and other personal installment loans. |
Loans (Nonaccrual Loans) (Detai
Loans (Nonaccrual Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 13,197 | $ 17,408 |
Accruing loans 90 days or more past due | 0 | 0 |
Commercial Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | 0 | 603 |
Commercial & Industrial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | 0 | 657 |
Total Commercial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | 0 | 1,260 |
Residential Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | 11,981 | 14,297 |
Home Equity [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | 1,128 | 1,763 |
Other Consumer [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | 88 | 88 |
Total Consumer [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccrual loans | $ 1,216 | $ 1,851 |
Loans (Interest Income on Nonac
Loans (Interest Income on Nonaccrual Loans) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Interest income recognized on nonaccrual loans | $ 416 |
Commercial Real Estate [Member] | |
Interest income recognized on nonaccrual loans | 0 |
Commercial & Industrial [Member] | |
Interest income recognized on nonaccrual loans | 2 |
Total Commercial [Member] | |
Interest income recognized on nonaccrual loans | 2 |
Residential Real Estate [Member] | |
Interest income recognized on nonaccrual loans | 379 |
Home Equity [Member] | |
Interest income recognized on nonaccrual loans | 35 |
Other Consumer [Member] | |
Interest income recognized on nonaccrual loans | 0 |
Total Consumer [Member] | |
Interest income recognized on nonaccrual loans | $ 35 |
Loans (TDRs) (Details)
Loans (TDRs) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Recorded investment | $ 15,763 | $ 869 |
Specific reserves on troubled debt restructurings | 159 | 97 |
Additional commitments to lend to borrowers with TDRs | 0 | 0 |
Performing Financial Instruments [Member] | ||
Recorded investment | 13,418 | 377 |
Nonperforming Financial Instruments [Member] | ||
Recorded investment | $ 2,345 | $ 492 |
Loans (TDR Modifications) (Deta
Loans (TDR Modifications) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Number of Loans Modified as a Troubled Debt Restructuring | 23 | 0 |
Pre-Modification Recorded Investment | $ 15,458 | $ 0 |
Post-Modification Recorded Investment | $ 15,458 | $ 0 |
Commercial Real Estate [Member] | ||
Number of Loans Modified as a Troubled Debt Restructuring | 3 | 0 |
Pre-Modification Recorded Investment | $ 1,798 | $ 0 |
Post-Modification Recorded Investment | $ 1,798 | $ 0 |
Commercial & Industrial [Member] | ||
Number of Loans Modified as a Troubled Debt Restructuring | 5 | 0 |
Pre-Modification Recorded Investment | $ 6,844 | $ 0 |
Post-Modification Recorded Investment | $ 6,844 | $ 0 |
Total Commercial [Member] | ||
Number of Loans Modified as a Troubled Debt Restructuring | 8 | 0 |
Pre-Modification Recorded Investment | $ 8,642 | $ 0 |
Post-Modification Recorded Investment | $ 8,642 | $ 0 |
Residential Real Estate [Member] | ||
Number of Loans Modified as a Troubled Debt Restructuring | 11 | 0 |
Pre-Modification Recorded Investment | $ 5,943 | $ 0 |
Post-Modification Recorded Investment | $ 5,943 | $ 0 |
Home Equity [Member] | ||
Number of Loans Modified as a Troubled Debt Restructuring | 4 | 0 |
Pre-Modification Recorded Investment | $ 873 | $ 0 |
Post-Modification Recorded Investment | $ 873 | $ 0 |
Other Consumer [Member] | ||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 |
Pre-Modification Recorded Investment | $ 0 | $ 0 |
Post-Modification Recorded Investment | $ 0 | $ 0 |
Total Consumer [Member] | ||
Number of Loans Modified as a Troubled Debt Restructuring | 4 | 0 |
Pre-Modification Recorded Investment | $ 873 | $ 0 |
Post-Modification Recorded Investment | $ 873 | $ 0 |
Loans (TDRs Type of Modificatio
Loans (TDRs Type of Modifications) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Pre-Modification Recorded Investment | $ 15,458 | $ 0 | |
Below market interest rate concession [Member] | |||
Pre-Modification Recorded Investment | 0 | 0 | |
Payment Deferral [Member] | |||
Pre-Modification Recorded Investment | 7,704 | 0 | |
Maturity / amortization concession [Member] | |||
Pre-Modification Recorded Investment | 0 | 0 | |
Interest only payments [Member] | |||
Pre-Modification Recorded Investment | 6,384 | 0 | |
Combination of concessions [Member] | |||
Pre-Modification Recorded Investment | [1] | $ 1,370 | $ 0 |
[1] | Loans included in this classification were modified with a combination of any two of the concessions listed in this table. |
Loans (TDRs Payment Defaults) (
Loans (TDRs Payment Defaults) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Number of Loans Modified as a Troubled Debt Restructuring | 23 | 0 |
Payment Default [Member] | ||
Number of Loans Modified as a Troubled Debt Restructuring | 5 | 0 |
Recorded Investment on Modifications with Subsequent Default | $ 2,267 | $ 0 |
Commercial Real Estate [Member] | ||
Number of Loans Modified as a Troubled Debt Restructuring | 3 | 0 |
Commercial Real Estate [Member] | Payment Default [Member] | ||
Number of Loans Modified as a Troubled Debt Restructuring | 1 | 0 |
Recorded Investment on Modifications with Subsequent Default | $ 850 | $ 0 |
Commercial & Industrial [Member] | ||
Number of Loans Modified as a Troubled Debt Restructuring | 5 | 0 |
Commercial & Industrial [Member] | Payment Default [Member] | ||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 |
Recorded Investment on Modifications with Subsequent Default | $ 0 | $ 0 |
Residential Real Estate [Member] | ||
Number of Loans Modified as a Troubled Debt Restructuring | 11 | 0 |
Residential Real Estate [Member] | Payment Default [Member] | ||
Number of Loans Modified as a Troubled Debt Restructuring | 2 | 0 |
Recorded Investment on Modifications with Subsequent Default | $ 1,299 | $ 0 |
Home Equity [Member] | ||
Number of Loans Modified as a Troubled Debt Restructuring | 4 | 0 |
Home Equity [Member] | Payment Default [Member] | ||
Number of Loans Modified as a Troubled Debt Restructuring | 2 | 0 |
Recorded Investment on Modifications with Subsequent Default | $ 118 | $ 0 |
Other Consumer [Member] | ||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 |
Other Consumer [Member] | Payment Default [Member] | ||
Number of Loans Modified as a Troubled Debt Restructuring | 0 | 0 |
Recorded Investment on Modifications with Subsequent Default | $ 0 | $ 0 |
Loans (Collateral dependent ind
Loans (Collateral dependent individually analyzed loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Total loans | [1] | $ 4,195,990 | $ 3,892,999 |
Related allowance on individually analyzed loans | 968 | ||
Commercial Real Estate [Member] | |||
Total loans | [2] | 1,633,024 | 1,547,572 |
Related allowance on individually analyzed loans | 0 | ||
Commercial & Industrial [Member] | |||
Total loans | [3] | 817,408 | 585,289 |
Related allowance on individually analyzed loans | 580 | ||
Total Commercial [Member] | |||
Total loans | 2,450,432 | 2,132,861 | |
Related allowance on individually analyzed loans | 580 | ||
Residential Real Estate [Member] | |||
Total loans | [4] | 1,467,312 | 1,449,090 |
Related allowance on individually analyzed loans | 95 | ||
Home Equity [Member] | |||
Total loans | 259,185 | 290,874 | |
Related allowance on individually analyzed loans | 291 | ||
Other Consumer [Member] | |||
Total loans | [5] | 19,061 | 20,174 |
Related allowance on individually analyzed loans | 2 | ||
Total Consumer [Member] | |||
Total loans | 278,246 | 311,048 | |
Related allowance on individually analyzed loans | $ 293 | ||
Collateral Dependent Individually Analyzed [Member] | |||
Total loans | 8,444 | ||
Related allowance on individually analyzed loans | 221 | ||
Collateral Dependent Individually Analyzed [Member] | Commercial Real Estate [Member] | |||
Total loans | [6] | 1,792 | |
Related allowance on individually analyzed loans | [6] | 0 | |
Collateral Dependent Individually Analyzed [Member] | Commercial & Industrial [Member] | |||
Total loans | [7] | 451 | |
Related allowance on individually analyzed loans | [7] | 0 | |
Collateral Dependent Individually Analyzed [Member] | Total Commercial [Member] | |||
Total loans | 2,243 | ||
Related allowance on individually analyzed loans | 0 | ||
Collateral Dependent Individually Analyzed [Member] | Residential Real Estate [Member] | |||
Total loans | [8] | 5,947 | |
Related allowance on individually analyzed loans | [8] | 38 | |
Collateral Dependent Individually Analyzed [Member] | Home Equity [Member] | |||
Total loans | [8] | 254 | |
Related allowance on individually analyzed loans | [8] | 183 | |
Collateral Dependent Individually Analyzed [Member] | Other Consumer [Member] | |||
Total loans | 0 | ||
Related allowance on individually analyzed loans | 0 | ||
Collateral Dependent Individually Analyzed [Member] | Total Consumer [Member] | |||
Total loans | 254 | ||
Related allowance on individually analyzed loans | $ 183 | ||
[1] | Includes net unamortized loan origination costs of $1.5 million and $5.3 million, respectively, at December 31, 2020 and 2019 and net unamortized premiums on purchased loans of $787 thousand and $995 thousand, respectively, at December 31, 2020 and 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 & industrial (“C&I”) consists of loans to businesses and individuals, a portion of which are fully or partially collateralized by real estate. C&I also includes $199.8 million of PPP loans as of December 31, 2020. | ||
[4] | Residential real estate consists of mortgage and homeowner construction loans secured by one- to four-family residential properties. | ||
[5] | Other consists of loans to individuals secured by general aviation aircraft and other personal installment loans. | ||
[6] | Secured by income-producing property. | ||
[7] | Secured by business assets. | ||
[8] | Secured by one- to four-family residential properties. |
Loans (Impaired Loans) (Details
Loans (Impaired Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | $ 15,527 | |
Collateral dependent impaired loans | [1] | 2,257 | |
Total Recorded Investment of Impaired Loans | [1] | 17,784 | |
Unpaid Principal of Impaired Loans with No Related Allowance | 16,363 | ||
Unpaid Principal of Impaired Loans with Related Allowance | 2,606 | ||
Total Unpaid Principal of Impaired Loans | 18,969 | ||
No Related Allowance on Impaired Loans | 0 | ||
Related allowance on individually analyzed loans | 968 | ||
Average Recorded Investment of Impaired Loans | 16,122 | $ 17,349 | |
Interest Income Recognized on Impaired Loans | 640 | 709 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Collateral dependent impaired loans | [1] | 603 | |
Unpaid Principal of Impaired Loans with Related Allowance | 926 | ||
Related allowance on individually analyzed loans | 0 | ||
Average Recorded Investment of Impaired Loans | 864 | 1,050 | |
Interest Income Recognized on Impaired Loans | 1 | 0 | |
Commercial & Industrial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Collateral dependent impaired loans | [1] | 657 | |
Unpaid Principal of Impaired Loans with Related Allowance | 657 | ||
Related allowance on individually analyzed loans | 580 | ||
Average Recorded Investment of Impaired Loans | 2,149 | 5,403 | |
Interest Income Recognized on Impaired Loans | 106 | 259 | |
Total Commercial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Collateral dependent impaired loans | [1] | 1,260 | |
Total Recorded Investment of Impaired Loans | [1] | 1,260 | |
Unpaid Principal of Impaired Loans with Related Allowance | 1,583 | ||
Total Unpaid Principal of Impaired Loans | 1,583 | ||
Related allowance on individually analyzed loans | 580 | ||
Average Recorded Investment of Impaired Loans | 3,013 | 6,453 | |
Interest Income Recognized on Impaired Loans | 107 | 259 | |
Residential Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 13,968 | |
Collateral dependent impaired loans | [1] | 687 | |
Total Recorded Investment of Impaired Loans | [1] | 14,655 | |
Unpaid Principal of Impaired Loans with No Related Allowance | 14,803 | ||
Unpaid Principal of Impaired Loans with Related Allowance | 714 | ||
Total Unpaid Principal of Impaired Loans | 15,517 | ||
No Related Allowance on Impaired Loans | 0 | ||
Related allowance on individually analyzed loans | 95 | ||
Average Recorded Investment of Impaired Loans | 11,575 | 9,645 | |
Interest Income Recognized on Impaired Loans | 473 | 393 | |
Home Equity [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 1,471 | |
Collateral dependent impaired loans | [1] | 292 | |
Unpaid Principal of Impaired Loans with No Related Allowance | 1,472 | ||
Unpaid Principal of Impaired Loans with Related Allowance | 291 | ||
No Related Allowance on Impaired Loans | 0 | ||
Related allowance on individually analyzed loans | 291 | ||
Average Recorded Investment of Impaired Loans | 1,466 | 1,182 | |
Interest Income Recognized on Impaired Loans | 58 | 52 | |
Other Consumer [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 88 | |
Collateral dependent impaired loans | [1] | 18 | |
Unpaid Principal of Impaired Loans with No Related Allowance | 88 | ||
Unpaid Principal of Impaired Loans with Related Allowance | 18 | ||
No Related Allowance on Impaired Loans | 0 | ||
Related allowance on individually analyzed loans | 2 | ||
Average Recorded Investment of Impaired Loans | 68 | 69 | |
Interest Income Recognized on Impaired Loans | 2 | 5 | |
Total Consumer [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment of Impaired Loans with No Related Allowance | [1] | 1,559 | |
Collateral dependent impaired loans | [1] | 310 | |
Total Recorded Investment of Impaired Loans | [1] | 1,869 | |
Unpaid Principal of Impaired Loans with No Related Allowance | 1,560 | ||
Unpaid Principal of Impaired Loans with Related Allowance | 309 | ||
Total Unpaid Principal of Impaired Loans | 1,869 | ||
No Related Allowance on Impaired Loans | 0 | ||
Related allowance on individually analyzed loans | 293 | ||
Average Recorded Investment of Impaired Loans | 1,534 | 1,251 | |
Interest Income Recognized on Impaired Loans | $ 60 | $ 57 | |
[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 (TDRs for which management has concluded that the collectability of the loan is not in doubt), the recorded investment also includes accrued interest. |
Loans (Credit Quality Indicator
Loans (Credit Quality Indicators Vintage) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Term loans amortized cost, current fiscal year | $ 1,058,859 |
Term loans amortized cost, one year before current fiscal year | 734,581 |
Term loans amortized cost, two years before current fiscal year | 554,968 |
Term loans amortized cost, three years before current fiscal year | 476,043 |
Term loans amortized cost, four years before current fiscal year | 325,496 |
Term loans amortized cost, five years or more before current fiscal year | 699,479 |
Revolving loans amortized cost | 330,433 |
Revolving loans converted to term loans | 16,131 |
Total | 4,195,990 |
Commercial Real Estate [Member] | |
Term loans amortized cost, current fiscal year | 285,054 |
Term loans amortized cost, one year before current fiscal year | 374,110 |
Term loans amortized cost, two years before current fiscal year | 300,304 |
Term loans amortized cost, three years before current fiscal year | 252,532 |
Term loans amortized cost, four years before current fiscal year | 147,808 |
Term loans amortized cost, five years or more before current fiscal year | 259,726 |
Revolving loans amortized cost | 11,104 |
Revolving loans converted to term loans | 2,386 |
Total | 1,633,024 |
Commercial Real Estate [Member] | Pass | |
Term loans amortized cost, current fiscal year | 283,341 |
Term loans amortized cost, one year before current fiscal year | 353,875 |
Term loans amortized cost, two years before current fiscal year | 260,917 |
Term loans amortized cost, three years before current fiscal year | 236,310 |
Term loans amortized cost, four years before current fiscal year | 136,490 |
Term loans amortized cost, five years or more before current fiscal year | 249,359 |
Revolving loans amortized cost | 10,333 |
Revolving loans converted to term loans | 2,386 |
Total | 1,533,011 |
Commercial Real Estate [Member] | Special Mention | |
Term loans amortized cost, current fiscal year | 756 |
Term loans amortized cost, one year before current fiscal year | 20,235 |
Term loans amortized cost, two years before current fiscal year | 39,387 |
Term loans amortized cost, three years before current fiscal year | 16,222 |
Term loans amortized cost, four years before current fiscal year | 11,318 |
Term loans amortized cost, five years or more before current fiscal year | 10,367 |
Revolving loans amortized cost | 771 |
Revolving loans converted to term loans | 0 |
Total | 99,056 |
Commercial Real Estate [Member] | Classified | |
Term loans amortized cost, current fiscal year | 957 |
Term loans amortized cost, one year before current fiscal year | 0 |
Term loans amortized cost, two years before current fiscal year | 0 |
Term loans amortized cost, three years before current fiscal year | 0 |
Term loans amortized cost, four years before current fiscal year | 0 |
Term loans amortized cost, five years or more before current fiscal year | 0 |
Revolving loans amortized cost | 0 |
Revolving loans converted to term loans | 0 |
Total | 957 |
Commercial & Industrial [Member] | |
Term loans amortized cost, current fiscal year | 295,019 |
Term loans amortized cost, one year before current fiscal year | 96,497 |
Term loans amortized cost, two years before current fiscal year | 101,356 |
Term loans amortized cost, three years before current fiscal year | 63,631 |
Term loans amortized cost, four years before current fiscal year | 47,586 |
Term loans amortized cost, five years or more before current fiscal year | 112,344 |
Revolving loans amortized cost | 99,623 |
Revolving loans converted to term loans | 1,352 |
Total | 817,408 |
Commercial & Industrial [Member] | Pass | |
Term loans amortized cost, current fiscal year | 293,493 |
Term loans amortized cost, one year before current fiscal year | 95,775 |
Term loans amortized cost, two years before current fiscal year | 98,146 |
Term loans amortized cost, three years before current fiscal year | 56,792 |
Term loans amortized cost, four years before current fiscal year | 44,445 |
Term loans amortized cost, five years or more before current fiscal year | 91,128 |
Revolving loans amortized cost | 95,817 |
Revolving loans converted to term loans | 1,296 |
Total | 776,892 |
Commercial & Industrial [Member] | Special Mention | |
Term loans amortized cost, current fiscal year | 1,123 |
Term loans amortized cost, one year before current fiscal year | 722 |
Term loans amortized cost, two years before current fiscal year | 3,210 |
Term loans amortized cost, three years before current fiscal year | 6,839 |
Term loans amortized cost, four years before current fiscal year | 3,141 |
Term loans amortized cost, five years or more before current fiscal year | 14,853 |
Revolving loans amortized cost | 3,806 |
Revolving loans converted to term loans | 56 |
Total | 33,750 |
Commercial & Industrial [Member] | Classified | |
Term loans amortized cost, current fiscal year | 403 |
Term loans amortized cost, one year before current fiscal year | 0 |
Term loans amortized cost, two years before current fiscal year | 0 |
Term loans amortized cost, three years before current fiscal year | 0 |
Term loans amortized cost, four years before current fiscal year | 0 |
Term loans amortized cost, five years or more before current fiscal year | 6,363 |
Revolving loans amortized cost | 0 |
Revolving loans converted to term loans | 0 |
Total | 6,766 |
Residential Real Estate [Member] | |
Term loans amortized cost, current fiscal year | 463,715 |
Term loans amortized cost, one year before current fiscal year | 254,926 |
Term loans amortized cost, two years before current fiscal year | 148,149 |
Term loans amortized cost, three years before current fiscal year | 156,862 |
Term loans amortized cost, four years before current fiscal year | 128,249 |
Term loans amortized cost, five years or more before current fiscal year | 315,411 |
Revolving loans amortized cost | 0 |
Revolving loans converted to term loans | 0 |
Total | 1,467,312 |
Residential Real Estate [Member] | Current | |
Term loans amortized cost, current fiscal year | 463,477 |
Term loans amortized cost, one year before current fiscal year | 253,228 |
Term loans amortized cost, two years before current fiscal year | 146,839 |
Term loans amortized cost, three years before current fiscal year | 155,976 |
Term loans amortized cost, four years before current fiscal year | 128,139 |
Term loans amortized cost, five years or more before current fiscal year | 309,314 |
Revolving loans amortized cost | 0 |
Revolving loans converted to term loans | 0 |
Total | 1,456,973 |
Residential Real Estate [Member] | Past Due | |
Term loans amortized cost, current fiscal year | 238 |
Term loans amortized cost, one year before current fiscal year | 1,698 |
Term loans amortized cost, two years before current fiscal year | 1,310 |
Term loans amortized cost, three years before current fiscal year | 886 |
Term loans amortized cost, four years before current fiscal year | 110 |
Term loans amortized cost, five years or more before current fiscal year | 6,097 |
Revolving loans amortized cost | 0 |
Revolving loans converted to term loans | 0 |
Total | 10,339 |
Home Equity [Member] | |
Term loans amortized cost, current fiscal year | 9,838 |
Term loans amortized cost, one year before current fiscal year | 6,806 |
Term loans amortized cost, two years before current fiscal year | 3,922 |
Term loans amortized cost, three years before current fiscal year | 1,474 |
Term loans amortized cost, four years before current fiscal year | 1,217 |
Term loans amortized cost, five years or more before current fiscal year | 4,141 |
Revolving loans amortized cost | 219,395 |
Revolving loans converted to term loans | 12,392 |
Total | 259,185 |
Home Equity [Member] | Current | |
Term loans amortized cost, current fiscal year | 9,838 |
Term loans amortized cost, one year before current fiscal year | 6,771 |
Term loans amortized cost, two years before current fiscal year | 3,898 |
Term loans amortized cost, three years before current fiscal year | 1,474 |
Term loans amortized cost, four years before current fiscal year | 1,217 |
Term loans amortized cost, five years or more before current fiscal year | 3,955 |
Revolving loans amortized cost | 219,085 |
Revolving loans converted to term loans | 11,280 |
Total | 257,518 |
Home Equity [Member] | Past Due | |
Term loans amortized cost, current fiscal year | 0 |
Term loans amortized cost, one year before current fiscal year | 35 |
Term loans amortized cost, two years before current fiscal year | 24 |
Term loans amortized cost, three years before current fiscal year | 0 |
Term loans amortized cost, four years before current fiscal year | 0 |
Term loans amortized cost, five years or more before current fiscal year | 186 |
Revolving loans amortized cost | 310 |
Revolving loans converted to term loans | 1,112 |
Total | 1,667 |
Other Consumer [Member] | |
Term loans amortized cost, current fiscal year | 5,233 |
Term loans amortized cost, one year before current fiscal year | 2,242 |
Term loans amortized cost, two years before current fiscal year | 1,237 |
Term loans amortized cost, three years before current fiscal year | 1,544 |
Term loans amortized cost, four years before current fiscal year | 636 |
Term loans amortized cost, five years or more before current fiscal year | 7,857 |
Revolving loans amortized cost | 311 |
Revolving loans converted to term loans | 1 |
Total | 19,061 |
Other Consumer [Member] | Current | |
Term loans amortized cost, current fiscal year | 5,214 |
Term loans amortized cost, one year before current fiscal year | 2,241 |
Term loans amortized cost, two years before current fiscal year | 1,237 |
Term loans amortized cost, three years before current fiscal year | 1,544 |
Term loans amortized cost, four years before current fiscal year | 548 |
Term loans amortized cost, five years or more before current fiscal year | 7,850 |
Revolving loans amortized cost | 308 |
Revolving loans converted to term loans | 1 |
Total | 18,943 |
Other Consumer [Member] | Past Due | |
Term loans amortized cost, current fiscal year | 19 |
Term loans amortized cost, one year before current fiscal year | 1 |
Term loans amortized cost, two years before current fiscal year | 0 |
Term loans amortized cost, three years before current fiscal year | 0 |
Term loans amortized cost, four years before current fiscal year | 88 |
Term loans amortized cost, five years or more before current fiscal year | 7 |
Revolving loans amortized cost | 3 |
Revolving loans converted to term loans | 0 |
Total | $ 118 |
Loans (Credit Quality Indicat_2
Loans (Credit Quality Indicators - Commercial) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Pass | Commercial Real Estate [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loans by credit quality indicator | $ 1,546,139 |
Pass | Commercial & Industrial [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loans by credit quality indicator | 549,416 |
Pass | Total Commercial [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loans by credit quality indicator | 2,095,555 |
Special Mention | Commercial Real Estate [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loans by credit quality indicator | 830 |
Special Mention | Commercial & Industrial [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loans by credit quality indicator | 24,961 |
Special Mention | Total Commercial [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loans by credit quality indicator | 25,791 |
Classified | Commercial Real Estate [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loans by credit quality indicator | 603 |
Classified | Commercial & Industrial [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loans by credit quality indicator | 10,912 |
Classified | Total Commercial [Member] | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loans by credit quality indicator | $ 11,515 |
Loans (Credit Quality Indicat_3
Loans (Credit Quality Indicators - Residential, Consumer) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | $ 4,183,598 | $ 3,877,310 |
Total Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past due | 12,392 | 15,689 |
Residential Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 1,456,973 | 1,437,661 |
Residential Real Estate [Member] | Total Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past due | 10,339 | 11,429 |
Home Equity [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 257,518 | 288,178 |
Home Equity [Member] | Total Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past due | 1,667 | 2,696 |
Other Consumer [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 18,943 | 20,044 |
Other Consumer [Member] | Total Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past due | 118 | 130 |
Total Consumer [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current | 276,461 | 308,222 |
Total Consumer [Member] | Total Past Due | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Past due | $ 1,785 | $ 2,826 |
Loans (Analysis of Loan Servici
Loans (Analysis of Loan Servicing Rights) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loan Servicing Rights [Roll Forward] | |||
Beginning balance | $ 3,526 | $ 3,651 | $ 3,613 |
Loan servicing rights capitalized | 6,569 | 902 | 905 |
Amortization | (2,507) | (1,027) | (867) |
Increase in impairment reserve | 0 | ||
Ending balance | 7,588 | 3,526 | 3,651 |
Valuation Allowance [Roll Forward] | |||
Beginning balance | 0 | 0 | 0 |
Loan servicing rights capitalized | 0 | 0 | 0 |
Amortization | 0 | 0 | 0 |
Increase in impairment reserve | (154) | ||
Ending balance | (154) | 0 | 0 |
Total Loan Servicing Rights [Roll Forward] | |||
Beginning Balance | 3,526 | 3,651 | 3,613 |
Loan servicing rights capitalized | 6,569 | 902 | 905 |
Amortization | (2,507) | (1,027) | (867) |
Increase in impairment reserve | (154) | ||
Ending balance | $ 7,434 | $ 3,526 | $ 3,651 |
Loans (Estimated Aggregate Amor
Loans (Estimated Aggregate Amortization Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||||
Amortization Expense, Next Twelve Months | $ 2,407 | |||
Amortization Expense, Year Two | 1,644 | |||
Amortization Expense, Year Three | 1,122 | |||
Amortization Expense, Year Four | 766 | |||
Amortization Expense, Year Five | 523 | |||
Amortization Expense, Thereafter | 1,126 | |||
Total estimated amortization expense | $ 7,588 | $ 3,526 | $ 3,651 | $ 3,613 |
Loans (Loans Serviced for Other
Loans (Loans Serviced for Others, by Type of Loan) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance of loans being serviced | $ 1,387,136 | $ 746,944 |
Residential Mortgages [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance of loans being serviced | 1,231,201 | 586,996 |
Commercial Loans [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance of loans being serviced | $ 155,935 | $ 159,948 |
Allowance for Credit Losses o_3
Allowance for Credit Losses on Loans (Allowance for Credit Losses on Loans Rollforward Analysis) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | $ 27,014 | $ 27,072 | $ 26,488 | |
Charge-offs | (1,317) | (2,020) | (1,187) | |
Recoveries | 172 | 387 | 221 | |
Provision | 11,736 | 1,575 | 1,550 | |
Ending Balance | 44,106 | 27,014 | 27,072 | |
Adoption of ASC 326 | $ 6,501 | |||
Commercial Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 14,741 | 15,381 | 12,729 | |
Charge-offs | (356) | (1,028) | (627) | |
Recoveries | 51 | 125 | 25 | |
Provision | 4,224 | 263 | 3,254 | |
Ending Balance | 22,065 | 14,741 | 15,381 | |
Adoption of ASC 326 | 3,405 | |||
Commercial & Industrial [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 3,921 | 5,847 | 5,580 | |
Charge-offs | (586) | (21) | (10) | |
Recoveries | 24 | 168 | 119 | |
Provision | 5,840 | (2,073) | 158 | |
Ending Balance | 12,228 | 3,921 | 5,847 | |
Adoption of ASC 326 | 3,029 | |||
Total Commercial [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 18,662 | 21,228 | 18,309 | |
Charge-offs | (942) | (1,049) | (637) | |
Recoveries | 75 | 293 | 144 | |
Provision | 10,064 | (1,810) | 3,412 | |
Ending Balance | 34,293 | 18,662 | 21,228 | |
Adoption of ASC 326 | 6,434 | |||
Residential Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 6,615 | 3,987 | 5,427 | |
Charge-offs | (99) | (486) | (250) | |
Recoveries | 20 | 0 | 21 | |
Provision | 1,285 | 3,114 | (1,211) | |
Ending Balance | 8,042 | 6,615 | 3,987 | |
Adoption of ASC 326 | 221 | |||
Home Equity [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 1,390 | 1,603 | 2,412 | |
Charge-offs | (224) | (390) | (193) | |
Recoveries | 52 | 72 | 29 | |
Provision | 188 | 105 | (645) | |
Ending Balance | 1,300 | 1,390 | 1,603 | |
Adoption of ASC 326 | (106) | |||
Other Consumer [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 347 | 254 | 340 | |
Charge-offs | (52) | (95) | (107) | |
Recoveries | 25 | 22 | 27 | |
Provision | 199 | 166 | (6) | |
Ending Balance | 471 | 347 | 254 | |
Adoption of ASC 326 | (48) | |||
Total Consumer [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning Balance | 1,737 | 1,857 | 2,752 | |
Charge-offs | (276) | (485) | (300) | |
Recoveries | 77 | 94 | 56 | |
Provision | 387 | 271 | (651) | |
Ending Balance | $ 1,771 | $ 1,737 | $ 1,857 | |
Adoption of ASC 326 | $ (154) |
Allowance for Loan Losses (Allo
Allowance for Loan Losses (Allowance for Loan Losses by Segment & Impairment Methodology) (Details) - USD ($) $ in Thousands | Dec. 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] | $ 4,195,990 | 3,892,999 |
Allowance | 27,014 | ||
Commercial Real Estate [Member] | |||
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] | 1,633,024 | 1,547,572 |
Commercial & Industrial [Member] | |||
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] | 817,408 | 585,289 |
Total Commercial [Member] | |||
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 | 2,450,432 | 2,132,861 | |
Residential Real Estate [Member] | |||
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] | 1,467,312 | 1,449,090 |
Home Equity [Member] | |||
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 | 259,185 | 290,874 | |
Other Consumer [Member] | |||
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] | 19,061 | 20,174 |
Total Consumer [Member] | |||
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 | $ 278,246 | $ 311,048 | |
[1] | Includes net unamortized loan origination costs of $1.5 million and $5.3 million, respectively, at December 31, 2020 and 2019 and net unamortized premiums on purchased loans of $787 thousand and $995 thousand, respectively, at December 31, 2020 and 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 & industrial (“C&I”) consists of loans to businesses and individuals, a portion of which are fully or partially collateralized by real estate. C&I also includes $199.8 million of PPP loans as of December 31, 2020. | ||
[4] | Residential real estate consists of mortgage and homeowner construction loans secured by one- to four-family residential properties. | ||
[5] | Other consists of loans to individuals secured by general aviation aircraft and other personal installment loans. |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Land | $ 5,921 | $ 5,921 | |
Premises and Improvements | 42,510 | 40,982 | |
Furniture fixtures and equipment | 24,969 | 24,760 | |
Premises and equipment, gross | 73,400 | 71,663 | |
Less: accumulated depreciation | 44,530 | 42,963 | |
Total premises and equipment, net | 28,870 | 28,700 | |
Depreciation expense | $ 3,200 | $ 3,300 | $ 3,300 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)numberOfLeasesNotYetCommenced | Dec. 31, 2019USD ($)numberOfLeasesNotYetCommenced | Dec. 31, 2018USD ($) | ||
Operating lease right-of-use assets | $ 29,521 | $ 26,792 | ||
Operating lease liabilities | 31,717 | [1] | 28,861 | |
Rent expense | $ 3,977 | $ 3,773 | $ 3,700 | |
Number of operating leases not yet commenced | numberOfLeasesNotYetCommenced | 0 | 1 | ||
[1] | Includes short-term operating lease liabilities of $2.9 million. |
Leases (Schedule of Certain Lea
Leases (Schedule of Certain Lease Terms) (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted average discount rate | 3.34% | 3.67% |
Weighted average remaining lease term | 13 years 4 months 24 days | 14 years |
Minimum [Member] | ||
Range of lease expiration dates | 7 months | 4 months |
Range of lease renewal options | 1 year | 1 year |
Maximum [Member] | ||
Range of lease expiration dates | 20 years | 21 years |
Range of lease renewal options | 5 years | 5 years |
Leases (Schedule of Operating L
Leases (Schedule of Operating Lease Payments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | |||
Leases [Abstract] | ||||
Operating lease minimum payments, Year One | $ 3,922 | |||
Operating lease minimum payments, Year Two | 3,890 | |||
Operating lease minimum payments, Year Three | 3,830 | |||
Operating lease minimum payments, Year Four | 3,618 | |||
Operating lease minimum payments, Year Five | 2,879 | |||
Operating lease minimum payments, Thereafter | 22,046 | |||
Total operating lease payments | [1] | 40,185 | ||
Less: interest | 8,468 | |||
Present value of operating lease liabilities | 31,717 | [2] | $ 28,861 | |
Reasonably certain to renew lease option | 2,100 | |||
Short-term operating leases | $ 2,900 | |||
[1] | Includes $2.1 million related to options to extend lease terms that are reasonably certain of being exercised. | |||
[2] | Includes short-term operating lease liabilities of $2.9 million. |
Leases (Lease Cost and Cash Pai
Leases (Lease Cost and Cash Paid) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Leases [Abstract] | ||||
Operating lease expense | $ 3,921 | $ 3,724 | ||
Variable lease expense | 56 | 49 | ||
Total lease expense | 3,977 | 3,773 | $ 3,700 | |
Cash paid reducing operating lease liabilities | $ 3,791 | [1] | $ 3,586 | |
[1] | Included in net occupancy expenses in the Consolidated Income Statement. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangibles | $ 914 | $ 943 | $ 979 |
Weston Financial acquisition [Member] | Advisory Contracts [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset useful life (in years) | 20 years | ||
Halsey acquisition [Member] | Advisory Contracts [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset useful life (in years) | 15 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill [Line Items] | ||
Goodwill | $ 63,909 | $ 63,909 |
Commercial Banking [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 22,591 | 22,591 |
Wealth Management Services [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $ 41,318 | $ 41,318 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Schedule of Components of Intangible Assets) (Details) - Advisory Contracts [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 20,803 | $ 20,803 |
Accumulated amortization | 14,498 | 13,585 |
Net amount | $ 6,305 | $ 7,218 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets (Schedule of Amortization Annual Expense) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 890 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 860 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 843 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 826 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 702 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | $ 2,184 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 0 | $ 0 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current Tax Expense: | |||||||||||
Federal | $ 19,248 | $ 17,298 | $ 15,460 | ||||||||
State | 3,213 | 3,254 | 2,863 | ||||||||
Total current tax expense | 22,461 | 20,552 | 18,323 | ||||||||
Deferred Tax (Benefit) Expense: | |||||||||||
Federal | (2,375) | (1,294) | 63 | ||||||||
State | (755) | (197) | (126) | ||||||||
Total deferred tax (benefit) expense | (3,130) | (1,491) | (63) | ||||||||
Income tax expense | $ 5,514 | $ 5,131 | $ 5,547 | $ 3,139 | $ 4,321 | $ 5,236 | $ 4,662 | $ 4,842 | $ 19,331 | $ 19,061 | $ 18,260 |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||||||||||
Tax expense at Federal statutory rate | $ 18,724 | $ 18,518 | $ 18,205 | ||||||||
Federal statutory rate | 21.00% | 21.00% | 21.00% | ||||||||
Increase (decrease) in taxes resulting from: | |||||||||||
State income tax expense, net of federal tax benefit | $ 1,995 | $ 2,417 | $ 2,162 | ||||||||
State income tax expense, net of federal income tax benefit, rate | 2.20% | 2.70% | 2.50% | ||||||||
Tax-exempt income, net | $ (803) | $ (814) | $ (809) | ||||||||
Tax-exempt income, net, rate | (0.90%) | (0.90%) | (0.90%) | ||||||||
BOLI | $ (523) | $ (494) | $ (461) | ||||||||
BOLI, rate | (0.60%) | (0.60%) | (0.50%) | ||||||||
Investment in low-income housing limited partnership | $ (118) | $ 0 | $ 0 | ||||||||
Investment in low-income housing limited partnership, rate | (0.10%) | 0.00% | 0.00% | ||||||||
Federal tax credits | $ (93) | $ (364) | $ (364) | ||||||||
Federal tax credits, rate | (0.10%) | (0.40%) | (0.40%) | ||||||||
Dividends received deduction | $ (28) | $ (36) | $ (45) | ||||||||
Dividends received deduction, rate | 0.00% | 0.00% | (0.10%) | ||||||||
Change in fair value of contingent consideration | $ 0 | $ 0 | $ (39) | ||||||||
Change in fair value of contingent consideration, rate | 0.00% | 0.00% | (0.10%) | ||||||||
Share-based compensation | $ 92 | $ (221) | $ (444) | ||||||||
Share-based compensation, rate | 0.10% | (0.30%) | (0.50%) | ||||||||
Other | $ 85 | $ 55 | $ 55 | ||||||||
Other, rate | 0.10% | 0.10% | 0.10% | ||||||||
Income tax expense | $ 5,514 | $ 5,131 | $ 5,547 | $ 3,139 | $ 4,321 | $ 5,236 | $ 4,662 | $ 4,842 | $ 19,331 | $ 19,061 | $ 18,260 |
Effective tax rate | 21.70% | 21.60% | 21.10% |
Income Taxes (Schedule of Gross
Income Taxes (Schedule of Gross Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Tax Assets: | ||
Allowance for credit losses on loans | $ 10,585 | $ 6,348 |
Operating lease liabilities | 7,612 | 6,782 |
Deferred compensation | 4,646 | 4,200 |
Deferred loan origination fees | 2,654 | 1,505 |
Defined benefit pension obligations | 2,576 | 1,361 |
Share-based compensation | 1,825 | 1,358 |
Other | 2,583 | 2,031 |
Deferred tax assets | 32,481 | 23,585 |
Deferred Tax Liabilities: | ||
Operating lease right-of-use assets | (7,085) | (6,296) |
Deferred loan origination costs | (4,321) | (4,084) |
Net unrealized gains on available for sale debt securities | (3,120) | (991) |
Loan servicing rights | (1,784) | (829) |
Amortization of intangibles | (1,513) | (1,696) |
Depreciation of premises and equipment | (1,215) | (669) |
Other | (1,253) | (719) |
Deferred tax liabilities | (20,291) | (15,284) |
Net deferred tax asset | $ 12,190 | $ 8,301 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Time Certificates of Deposit [Abstract] | ||
Time deposits greater than FDIC limit | $ 134.9 | $ 147.3 |
Deposits (Summary of Deposits)
Deposits (Summary of Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Deposits [Abstract] | |||
Noninterest-bearing demand deposits | $ 832,287 | $ 609,924 | |
Interest-bearing demand deposits | 174,290 | 159,938 | |
NOW accounts | 698,706 | 520,295 | |
Money market accounts | 910,167 | 765,899 | |
Savings accounts | 466,507 | 373,503 | |
Time deposits | [1] | 1,296,396 | 1,069,323 |
Total deposits | 4,378,353 | 3,498,882 | |
Wholesale brokered time deposits | $ 591,541 | $ 284,842 | |
[1] | Includes wholesale brokered time deposit balances of $591,541 and $284,842, respectively, as of December 31, 2020 and December 31, 2019. |
Deposits (Schedule of Time Cert
Deposits (Schedule of Time Certifcates of Deposit Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Maturity Abstract] | |||
Time Deposits Scheduled Maturity, Next Twelve Months | $ 977,912 | ||
Time Deposits Scheduled Maturity, Year Two | 222,300 | ||
Time Deposits Scheduled Maturity, Year Three | 35,026 | ||
Time Deposits Scheduled Maturity, Year Four | 18,736 | ||
Time Deposits Scheduled Maturity, Year Five | 42,422 | ||
Time Deposits Scheduled Maturity, Thereafter | 0 | ||
Time deposits | [1] | $ 1,296,396 | $ 1,069,323 |
Weighted Average Rate [Abstract] | |||
Time Deposits Weighted Average Rate, Next Twelve Months | 0.77% | ||
Time Deposits Weighted Average Rate, Year Two | 1.30% | ||
Time Deposits Weighted Average Rate, Year Three | 1.90% | ||
Time Deposits Weighted Average Rate, Year Four | 1.64% | ||
Time Deposits Weighted Average Rate, Year Five | 1.17% | ||
Time Deposits Weighted Average Rate, Thereafter | 0.00% | ||
Total Time Deposits Weighted Average Rate | 0.91% | ||
[1] | Includes wholesale brokered time deposit balances of $591,541 and $284,842, respectively, as of December 31, 2020 and December 31, 2019. |
Deposits (Schedule of Time Ce_2
Deposits (Schedule of Time Certificates of Deposit $100 Thousand or More Maturities) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Deposits [Abstract] | |
Time Deposits $100,000 or More Maturing in Three Months or Less | $ 131,277 |
Time Deposits $100,000 or More Maturing in Three Months Through Six Months | 77,811 |
Time Deposits $100,000 or More Maturing in Six Months Through Twelve Months | 75,982 |
Time Deposits $100,000 or More Maturing After 12 Months | 126,977 |
Time Deposits $100,000 or More Balance at Year End | $ 412,047 |
Borrowings (Narrative - Federal
Borrowings (Narrative - Federal Home Loan Bank Advances) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank advances | $ 593,859 | $ 1,141,464 |
Federal Home Loan Bank of Boston [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal Home Loan Bank advances | 593,859 | 1,100,000 |
Unused line of credit with Federal Home Loan Bank | 40,000 | 40,000 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 969,700 | $ 535,000 |
Borrowings (Narrative - Junior
Borrowings (Narrative - Junior Subordinated Debentures) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Junior subordinated debentures | $ 22,681 | $ 22,681 |
Trust I Debentures [Member] | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Junior subordinated debentures | $ 8,300 | |
Description of variable rate basis | three-month LIBOR | |
Basis spread on variable rate | 1.45% | |
Trust II Debentures [Member] | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Junior subordinated debentures | $ 14,400 | |
Description of variable rate basis | three-month LIBOR | |
Basis spread on variable rate | 1.45% |
Borrowings (Federal Home Loan B
Borrowings (Federal Home Loan Bank Advances Maturity Schedule) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
Federal Home Loan Bank advances | $ 593,859 | $ 1,141,464 |
Federal Home Loan Bank of Boston [Member] | ||
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
Scheduled Maturity, Next 12 months | 517,222 | |
Scheduled Maturity, Year Two | 813 | |
Scheduled Maturity, Year Three | 856 | |
Scheduled Maturity, Year Four | 35,900 | |
Scheduled Maturity, Year Five | 2,751 | |
Scheduled Maturity, Thereafter | 36,317 | |
Federal Home Loan Bank advances | $ 593,859 | $ 1,100,000 |
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract] | ||
Weighted Average Rate, Next 12 months | 0.71% | |
Weighted Average Rate, Year Two | 5.12% | |
Weighted Average Rate, Year Three | 5.12% | |
Weighted Average Rate, Year Four | 2.52% | |
Weighted Average Rate, Year Five | 5.03% | |
Weighted Average Rate, Thereafter | 3.13% | |
Weighted Average Rate, Total | 1.00% |
Borrowings (Certain Information
Borrowings (Certain Information of Federal Home Loan Bank of Boston Advances) (Details) - Federal Home Loan Bank of Boston [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Average amount outstanding during the period | $ 690,366 | $ 718,722 | $ 484,090 |
Amount outstanding at end of period | 354,000 | 897,000 | 630,000 |
Highest month end balance during period | $ 985,500 | $ 897,000 | $ 630,000 |
Weighted-average interest rate at end of period | 0.39% | 2.06% | 2.67% |
Weighted-average interest rate during the period | 1.39% | 2.59% | 2.23% |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | |||
Trust preferred securities included in Tier 1 Capital | $ 22,000 | $ 22,000 | |
Equity, Class of Treasury Stock [Line Items] | |||
Treasury repurchase, shares | 125,000 | ||
Amount of treasury repurchases | $ 4,322 | ||
Reserved Shares: | |||
Reserved shares available for grant | 1,625,598 | ||
Bank [Member] | |||
Dividends: | |||
Dividends paid by Bank to Bancorp | $ 43,139 | $ 36,796 | $ 32,394 |
2019 Stock Repurchase Program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Authorized amount (in shares) | 850,000 | ||
Authorized amount as a percentage of total common stock | 5.00% | ||
Treasury repurchase, shares | 124,863 | ||
Amount of treasury repurchases | $ 4,300 | ||
Average prices of treasury repurchases | $ 34.61 | ||
2020 Stock Repurchase Program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Authorized amount (in shares) | 850,000 | ||
Authorized amount as a percentage of total common stock | 5.00% |
Shareholders' Equity (Regulator
Shareholders' Equity (Regulatory Captial Requirements) (Details) $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Parent Company [Member] | |||
Total Capital (to Risk-Weighted Assets): | |||
Total Capital | $ 539,496 | $ 494,603 | |
Total Capital to Risk-Weighted Assets | 0.1351 | 0.1294 | |
Total Capital for Capital Adequacy Purposes | $ 319,532 | $ 305,728 | |
Total Capital for Capital Adequacy Purposes to Risk-Weighted Assets | 0.0800 | 0.0800 | |
Tier 1 Capital (to Risk-Weighted Assets): | |||
Tier 1 Capital | $ 503,791 | $ 467,296 | |
Tier 1 Capital to Risk-Weighted Assets | 0.1261 | 0.1223 | |
Tier 1 Capital Required For Capital Adequacy Purposes | $ 239,649 | $ 229,296 | |
Tier 1 Capital Required for Capital Adequacy Purposes to Risk-Weighted Assets | 0.0600 | 0.0600 | |
Common Equity Tier 1 Capital [Abstract] | |||
Common Equity Tier 1 Capital | $ 481,792 | $ 445,298 | |
Common Equity Tier 1 Capital to Risk-Weighted Assets | 0.1206 | 0.1165 | |
Common Equity Tier 1 Required for Capital Adequacy | $ 179,737 | $ 171,972 | |
Common Equity Tier 1 Required for Capital Adequacy Purposes to Risk-Weighted Assets | 0.0450 | 0.0450 | |
Tier 1 Capital (to Average Assets): | |||
Tier 1 Leverage Capital | $ 503,791 | $ 467,296 | |
Tier 1 Leverage Capital to Average Assets | [1] | 0.0895 | 0.0904 |
Tier 1 Leverage Capital Required for Capital Adequacy Purposes | $ 225,209 | $ 206,682 | |
Tier 1 Leverage Capital Required for Capital Adequacy Purposes to Average Assets | [1] | 0.0400 | 0.0400 |
Bank [Member] | |||
Total Capital (to Risk-Weighted Assets): | |||
Total Capital | $ 534,288 | $ 490,993 | |
Total Capital to Risk-Weighted Assets | 0.1338 | 0.1285 | |
Total Capital for Capital Adequacy Purposes | $ 319,503 | $ 305,693 | |
Total Capital for Capital Adequacy Purposes to Risk-Weighted Assets | 0.0800 | 0.0800 | |
Total Capital To Be Well Capitalized | $ 399,379 | $ 382,116 | |
Total Capital To Be Well Capitalized to Risk-Weighted Assets | 0.1000 | 0.1000 | |
Tier 1 Capital (to Risk-Weighted Assets): | |||
Tier 1 Capital | $ 498,583 | $ 463,686 | |
Tier 1 Capital to Risk-Weighted Assets | 0.1248 | 0.1213 | |
Tier 1 Capital Required For Capital Adequacy Purposes | $ 239,627 | $ 229,270 | |
Tier 1 Capital Required for Capital Adequacy Purposes to Risk-Weighted Assets | 0.0600 | 0.0600 | |
Tier 1 Capital Required To Be Well Capitalized | $ 319,503 | $ 305,693 | |
Tier 1 Capital Required To Be Well Capitalized to Risk-Weighted Assets | 0.0800 | 0.0800 | |
Common Equity Tier 1 Capital [Abstract] | |||
Common Equity Tier 1 Capital | $ 498,583 | $ 463,686 | |
Common Equity Tier 1 Capital to Risk-Weighted Assets | 0.1248 | 0.1213 | |
Common Equity Tier 1 Required for Capital Adequacy | $ 179,721 | $ 171,952 | |
Common Equity Tier 1 Required for Capital Adequacy Purposes to Risk-Weighted Assets | 0.0450 | 0.0450 | |
Common Equity Tier 1 Required To Be Well Capitalized | $ 259,596 | $ 248,375 | |
Common Equity Tier 1 Required To Be Well Capitalized to Risk-Weighted Assets | 0.0650 | 0.0650 | |
Tier 1 Capital (to Average Assets): | |||
Tier 1 Leverage Capital | $ 498,583 | $ 463,686 | |
Tier 1 Leverage Capital to Average Assets | [1] | 0.0886 | 0.0898 |
Tier 1 Leverage Capital Required for Capital Adequacy Purposes | $ 225,126 | $ 206,596 | |
Tier 1 Leverage Capital Required for Capital Adequacy Purposes to Average Assets | [1] | 0.0400 | 0.0400 |
Tier 1 Leverage Capital Required To Be Well Capitalized | $ 281,407 | $ 258,245 | |
Tier 1 Leverage Capital Required To Be Well Capitalized to Average Assets | [1] | 0.0500 | 0.0500 |
[1] | Leverage ratio. |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) $ in Thousands | Dec. 31, 2020USD ($)derivative_instrument | Dec. 31, 2019USD ($)derivative_instrument |
Interest rate swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 60,000 | $ 60,000 |
Interest rate swaps with customers [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 991,002 | 813,458 |
Mirror swaps with counterparties [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 991,002 | 813,458 |
Risk participation-in agreement [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 92,717 | 72,866 |
Interest rate lock commitments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 167,671 | 51,439 |
Forward sale commitments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 279,653 | $ 94,829 |
Designated as Hedging Instrument [Member] | Interest rate caps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Number of derivative instruments held | derivative_instrument | 2 | |
Notional amount | $ 22,700 | |
Interest rate cap strike | 4.50% | |
Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Number of derivative instruments held | derivative_instrument | 2 | 2 |
Notional amount | $ 60,000 | $ 60,000 |
Designated as Hedging Instrument [Member] | Interest rate floors [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Number of derivative instruments held | derivative_instrument | 3 | |
Notional amount | $ 300,000 | |
Interest rate floor strike | 1.00% | |
Not Designated as Hedging Instrument [Member] | Interest rate swaps with customers [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 991,000 | $ 813,500 |
Not Designated as Hedging Instrument [Member] | Mirror swaps with counterparties [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 991,000 | 813,500 |
Not Designated as Hedging Instrument [Member] | Risk participation-out agreement [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | 61,600 | 61,200 |
Not Designated as Hedging Instrument [Member] | Risk participation-in agreement [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount | $ 92,700 | $ 72,900 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Fair Value of Derivatives by Balance Sheet Location) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Interest rate caps [Member] | Designated as Hedging Instrument [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Interest rate cash flow hedge asset at fair value | $ 0 | $ 0 | |
Interest rate caps [Member] | Designated as Hedging Instrument [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Interest rate cash flow hedge liability at fair value | 0 | 0 | |
Interest rate swaps [Member] | Designated as Hedging Instrument [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Interest rate cash flow hedge asset at fair value | 0 | 0 | |
Interest rate swaps [Member] | Designated as Hedging Instrument [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Interest rate cash flow hedge liability at fair value | 1,958 | 730 | |
Interest rate floors [Member] | Designated as Hedging Instrument [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Interest rate cash flow hedge asset at fair value | 0 | 3 | |
Interest rate floors [Member] | Designated as Hedging Instrument [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Interest rate cash flow hedge liability at fair value | 0 | 0 | |
Interest rate swaps with customers [Member] | Not Designated as Hedging Instrument [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset not designated as hedging instruments | 75,804 | 27,736 | |
Interest rate swaps with customers [Member] | Not Designated as Hedging Instrument [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability not designated as hedging instruments | 68 | 358 | |
Mirror swaps with counterparties [Member] | Not Designated as Hedging Instrument [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset not designated as hedging instruments | 67 | 351 | |
Mirror swaps with counterparties [Member] | Not Designated as Hedging Instrument [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability not designated as hedging instruments | 76,248 | 27,819 | |
Risk participation agreements [Member] | Not Designated as Hedging Instrument [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset not designated as hedging instruments | 22 | 1 | |
Risk participation agreements [Member] | Not Designated as Hedging Instrument [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability not designated as hedging instruments | 2 | 1 | |
Interest rate lock commitments [Member] | Not Designated as Hedging Instrument [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset not designated as hedging instruments | 7,202 | 1,097 | |
Interest rate lock commitments [Member] | Not Designated as Hedging Instrument [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability not designated as hedging instruments | 0 | 0 | |
Forward sale commitments [Member] | Not Designated as Hedging Instrument [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative asset not designated as hedging instruments | 0 | 30 | |
Forward sale commitments [Member] | Not Designated as Hedging Instrument [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative liability not designated as hedging instruments | 2,914 | 827 | |
Derivative assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Gross derivative assets | 83,095 | 29,218 | |
Less amounts offset in Consolidated Balance Sheets, derivative liabilities | [1] | 67 | 354 |
Net amounts presented in Consolidated Balance Sheets, derivative assets | 83,028 | 28,864 | |
Less collateral pledged, derivatives assets | [2] | 0 | 0 |
Net amounts | 83,028 | 28,864 | |
Derivative liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Gross derivative liabilities | 81,190 | 29,735 | |
Less amounts offset in Consolidated Balance Sheets, derivative assets | [1] | 67 | 354 |
Net amounts presented in Consolidated Balance Sheets, derivative liabilities | 81,123 | 29,381 | |
Less collateral pledged, derivative liabilities | [2] | 74,698 | 27,105 |
Net amounts | $ 6,425 | $ 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 Financial Instrume_5
Derivative Financial Instruments (Derivatives in Cash Flow Hedging Relationships, Effect in Statements of Changes in Shareholders' Equity and Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net change in fair value of cash flow hedges | $ (654) | $ (984) | $ 619 |
Other Comprehensive Income (Loss) [Member] | Interest rate caps [Member] | Cash Flow Hedge [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net change in fair value of cash flow hedges | 89 | 52 | 30 |
Other Comprehensive Income (Loss) [Member] | Interest rate swaps [Member] | Cash Flow Hedge [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net change in fair value of cash flow hedges | (893) | (1,232) | 515 |
Other Comprehensive Income (Loss) [Member] | Interest rate floors [Member] | Cash Flow Hedge [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net change in fair value of cash flow hedges | $ 150 | $ 196 | $ 74 |
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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivative | $ (672) | $ 2,464 | $ 3,319 |
Interest rate swaps with customers [Member] | Loan related derivative income [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivative | 60,938 | 29,910 | (290) |
Mirror swaps with counterparties [Member] | Loan related derivative income [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivative | (57,067) | (26,043) | 2,709 |
Risk participation agreements [Member] | Loan related derivative income [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivative | 120 | 97 | (27) |
Foreign exchange contracts [Member] | Loan related derivative income [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivative | 0 | 28 | 69 |
Interest rate lock commitments [Member] | Mortgage banking revenues [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivative | 6,106 | 290 | (139) |
Forward sale commitments [Member] | Mortgage banking revenues [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivative | $ (10,769) | $ (1,818) | $ 997 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Mortgage Loans Held for Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Change in fair value of mortgage loans held for sale under fair value option | $ 1,600 | $ 167 |
Fair Value Measurements (Mortga
Fair Value Measurements (Mortgage Loans Held For Sale, Fair Value Option) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Aggregate fair value | $ 61,614 | $ 27,833 |
Aggregate principal balance | 59,313 | 27,168 |
Difference between fair value and principal balance | $ 2,301 | $ 665 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | $ 894,571 | $ 899,490 |
Mortgage loans held for sale, fair value | 61,614 | 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 | 131,669 | 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 | 740,305 | 719,080 |
Individual name issuer trust preferred debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 12,669 | 12,579 |
Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 9,928 | 10,183 |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale, fair value | 61,614 | 27,833 |
Derivative assets | 83,028 | 28,864 |
Total assets at fair value on a recurring basis | 1,039,213 | 956,187 |
Derivative liabilities | 81,123 | 29,381 |
Total liabilities at fair value on a recurring basis | 81,123 | 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 | 131,669 | 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 | 740,305 | 719,080 |
Recurring [Member] | Individual name issuer trust preferred debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 12,669 | 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 | 9,928 | 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, 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 | 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 | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Individual name issuer trust preferred debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 0 | 0 |
Recurring [Member] | Level 1 [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 0 | 0 |
Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale, fair value | 61,614 | 27,833 |
Derivative assets | 83,028 | 28,864 |
Total assets at fair value on a recurring basis | 1,039,213 | 956,187 |
Derivative liabilities | 81,123 | 29,381 |
Total liabilities at fair value on a recurring basis | 81,123 | 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 | 131,669 | 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 | 740,305 | 719,080 |
Recurring [Member] | Level 2 [Member] | Individual name issuer trust preferred debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 12,669 | 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 | 9,928 | 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, 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 | 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 | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Individual name issuer trust preferred debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | 0 | 0 |
Recurring [Member] | Level 3 [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale debt securities | $ 0 | $ 0 |
Fair Value Measurements (Asse_2
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Dec. 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 | $ 1,720 | 1,448 | |
Loan servicing right | 7,434 | ||
Property acquired through foreclosure or repossession | 1,109 | ||
Total assets at fair value on a recurring basis | 9,154 | 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 | |
Loan servicing right | 0 | ||
Property acquired through foreclosure or repossession | 0 | ||
Total assets at fair value on a recurring basis | 0 | 0 | |
Nonrecurring [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Collateral dependent impaired loans | 0 | 0 | |
Loan servicing right | 0 | ||
Property acquired through foreclosure or repossession | 0 | ||
Total assets at fair value on a recurring 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 | 1,720 | 1,448 | |
Loan servicing right | 7,434 | ||
Property acquired through foreclosure or repossession | 1,109 | ||
Total assets at fair value on a recurring basis | $ 9,154 | $ 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 (TDRs for which management has concluded that the collectability of the loan is not in doubt), the recorded investment also includes accrued interest. |
Fair Value Measurements (Qualit
Fair Value Measurements (Qualitative Information About Level 3 Assets Measured at Fair Value on a Nonrecurring Basis) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Fair Value Inputs Assets Qualitative Information [Line Items] | |||
Collateral dependent impaired loans | [1] | $ 2,257 | |
Nonrecurring [Member] | |||
Fair Value Inputs Assets Qualitative Information [Line Items] | |||
Collateral dependent impaired loans | $ 1,720 | 1,448 | |
Loan servicing right | 7,434 | ||
Property acquired through foreclosure or repossession | 1,109 | ||
Nonrecurring [Member] | Level 3 [Member] | |||
Fair Value Inputs Assets Qualitative Information [Line Items] | |||
Collateral dependent impaired loans | 1,720 | 1,448 | |
Loan servicing right | $ 7,434 | ||
Property acquired through foreclosure or repossession | $ 1,109 | ||
Collateral Dependent Impaired Loans [Member] | Nonrecurring [Member] | Level 3 [Member] | Appraisals Of Collateral [Member] | Minimum [Member] | |||
Fair Value Inputs Assets Qualitative Information [Line Items] | |||
Discount for costs to sell | 0.00% | 0.00% | |
Appraisal adjustments | 0.00% | 0.00% | |
Collateral Dependent Impaired Loans [Member] | Nonrecurring [Member] | Level 3 [Member] | Appraisals Of Collateral [Member] | Maximum [Member] | |||
Fair Value Inputs Assets Qualitative Information [Line Items] | |||
Discount for costs to sell | 25.00% | 20.00% | |
Appraisal adjustments | 100.00% | 100.00% | |
Collateral Dependent Impaired Loans [Member] | Nonrecurring [Member] | Level 3 [Member] | Appraisals Of Collateral [Member] | Weighted Average [Member] | |||
Fair Value Inputs Assets Qualitative Information [Line Items] | |||
Discount for costs to sell | 11.00% | 5.00% | |
Appraisal adjustments | 15.00% | 67.00% | |
Property Acquired Through Foreclosure Or Repossession [Member] | Nonrecurring [Member] | Level 3 [Member] | Appraisals Of Collateral [Member] | Weighted Average [Member] | |||
Fair Value Inputs Assets Qualitative Information [Line Items] | |||
Discount for costs to sell | 12.00% | ||
Appraisal adjustments | 22.00% | ||
Servicing Contracts [Member] | Nonrecurring [Member] | Level 3 [Member] | Valuation Technique, Discounted Cash Flow [Member] | Minimum [Member] | |||
Fair Value Inputs Assets Qualitative Information [Line Items] | |||
Discount rate | 10.00% | ||
Prepayment rates | 18.00% | ||
Servicing Contracts [Member] | Nonrecurring [Member] | Level 3 [Member] | Valuation Technique, Discounted Cash Flow [Member] | Maximum [Member] | |||
Fair Value Inputs Assets Qualitative Information [Line Items] | |||
Discount rate | 14.00% | ||
Prepayment rates | 42.00% | ||
Servicing Contracts [Member] | Nonrecurring [Member] | Level 3 [Member] | Valuation Technique, Discounted Cash Flow [Member] | Weighted Average [Member] | |||
Fair Value Inputs Assets Qualitative Information [Line Items] | |||
Discount rate | 10.00% | ||
Prepayment rates | 21.00% | ||
[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 (TDRs for which management has concluded that the collectability of the loan is not in doubt), the recorded investment also includes accrued interest. |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Amounts and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, net of allowance for credit losses on loans | $ 4,151,884 | $ 3,865,985 | |
Time deposits | [1] | 1,296,396 | 1,069,323 |
FHLB advances | 593,859 | 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 | 4,151,884 | 3,865,985 | |
Time deposits | 1,296,396 | 1,069,323 | |
FHLB advances | 593,859 | 1,141,464 | |
Junior subordinated debentures | 22,681 | 22,681 | |
Estimate of Fair Value Measurement [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, net of allowance for credit losses on loans | 4,114,628 | 3,869,192 | |
Time deposits | 1,302,128 | 1,082,830 | |
FHLB advances | 602,000 | 1,145,242 | |
Junior subordinated debentures | 19,422 | 19,628 | |
Estimate of 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 | |
FHLB advances | 0 | 0 | |
Junior subordinated debentures | 0 | 0 | |
Estimate of Fair Value Measurement [Member] | Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, net of allowance for credit losses on loans | 0 | 0 | |
Time deposits | 1,302,128 | 1,082,830 | |
FHLB advances | 602,000 | 1,145,242 | |
Junior subordinated debentures | 19,422 | 19,628 | |
Estimate of 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 | 4,114,628 | 3,869,192 | |
Time deposits | 0 | 0 | |
FHLB advances | 0 | 0 | |
Junior subordinated debentures | $ 0 | $ 0 | |
[1] | Includes wholesale brokered time deposit balances of $591,541 and $284,842, respectively, as of December 31, 2020 and December 31, 2019. |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Receivables | $ 4,800 | $ 4,500 |
Contract cost assets | $ 1,500 | $ 905 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||
Net interest income | $ 32,243 | $ 31,654 | $ 30,945 | $ 32,602 | $ 31,994 | $ 32,978 | $ 33,858 | $ 34,584 | $ 127,444 | [1] | $ 133,414 | [1] | $ 132,290 | [1] | |
Asset-based wealth management revenues | [1] | 34,363 | 35,806 | 37,343 | |||||||||||
Transaction-based wealth management revenues | [1] | 1,091 | 1,042 | 998 | |||||||||||
Total wealth management revenues | [1] | 35,454 | 36,848 | 38,341 | |||||||||||
Mortgage banking revenues | [1] | 47,377 | 14,795 | 10,381 | |||||||||||
Card interchange fees | [1] | 4,287 | 4,214 | 3,768 | |||||||||||
Service charges on deposit accounts | [1] | 2,742 | 3,684 | 3,628 | |||||||||||
Loan related derivative income | [1] | 3,991 | 3,993 | 2,461 | |||||||||||
Income from bank-owned life insurance | [1] | 2,491 | 2,354 | 2,196 | |||||||||||
Net realized losses on securities | [1] | 0 | (53) | 0 | |||||||||||
Other income | [1] | 3,100 | 1,245 | 1,339 | |||||||||||
Total noninterest income | $ 27,727 | $ 25,468 | $ 26,320 | $ 19,927 | $ 16,618 | $ 18,342 | $ 16,753 | $ 15,367 | 99,442 | [1] | 67,080 | [1] | 62,114 | [1] | |
Total revenues | [1] | 226,886 | 200,494 | 194,404 | |||||||||||
Revenues from contracts with customers | 45,152 | 45,930 | 47,066 | ||||||||||||
Net Interest Income [Member] | |||||||||||||||
Revenues from contracts with customers | [2] | 0 | 0 | 0 | |||||||||||
Asset-based Wealth Management Revenues [Member] | |||||||||||||||
Revenues from contracts with customers | [2] | 34,363 | 35,806 | 37,343 | |||||||||||
Transaction-based Wealth Management Revenues [Member] | |||||||||||||||
Revenues from contracts with customers | [2] | 1,091 | 1,042 | 998 | |||||||||||
Investment Advisory, Management and Administrative Service [Member] | |||||||||||||||
Revenues from contracts with customers | [2] | 35,454 | 36,848 | 38,341 | |||||||||||
Mortgage Banking [Member] | |||||||||||||||
Revenues from contracts with customers | [2] | 0 | 0 | 0 | |||||||||||
Card Interchange Fees [Member] | |||||||||||||||
Revenues from contracts with customers | [2] | 4,287 | 4,214 | 3,768 | |||||||||||
Deposit Account [Member] | |||||||||||||||
Revenues from contracts with customers | [2] | 2,742 | 3,684 | 3,628 | |||||||||||
Loan Related Derivative Income [Member] | |||||||||||||||
Revenues from contracts with customers | [2] | 0 | 0 | 0 | |||||||||||
Income From Bank-owned Life Insurance [Member] | |||||||||||||||
Revenues from contracts with customers | [2] | 0 | 0 | 0 | |||||||||||
Net Realized Gain (Loss) on Securities [Member] | |||||||||||||||
Revenues from contracts with customers | [2] | 0 | 0 | 0 | |||||||||||
Other Noninterest Income [Member] | |||||||||||||||
Revenues from contracts with customers | [2] | 2,669 | 1,184 | 1,329 | |||||||||||
Total noninterest income in scope of Topic 606 [Member] | |||||||||||||||
Revenues from contracts with customers | [2] | 45,152 | 45,930 | 47,066 | |||||||||||
Total revenues in scope of Topic 606 [Member] | |||||||||||||||
Revenues from contracts with customers | [2] | $ 45,152 | $ 45,930 | $ 47,066 | |||||||||||
[1] | As reported in the Consolidated Statements of Income. | ||||||||||||||
[2] | Revenue from contracts with customers in scope of ASC 606. |
Revenue from Contract with Cust
Revenue from Contract with Customers (Disaggregation by Timing of Revenue Recognition) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Revenues from contracts with customers | $ 45,152 | $ 45,930 | $ 47,066 | |
Investment Advisory, Management and Administrative Service [Member] | ||||
Revenues from contracts with customers | [1] | 35,454 | 36,848 | 38,341 |
Investment Advisory, Management and Administrative Service [Member] | Transferred over Time [Member] | ||||
Revenues from contracts with customers | 35,454 | 36,848 | 38,341 | |
Card Interchange Fees [Member] | ||||
Revenues from contracts with customers | [1] | 4,287 | 4,214 | 3,768 |
Card Interchange Fees [Member] | Transferred at Point in Time [Member] | ||||
Revenues from contracts with customers | 4,287 | 4,214 | 3,768 | |
Deposit Account [Member] | ||||
Revenues from contracts with customers | [1] | 2,742 | 3,684 | 3,628 |
Deposit Account [Member] | Transferred at Point in Time [Member] | ||||
Revenues from contracts with customers | 2,103 | 2,850 | 2,802 | |
Deposit Account [Member] | Transferred over Time [Member] | ||||
Revenues from contracts with customers | 639 | 834 | 826 | |
Other Noninterest Income [Member] | ||||
Revenues from contracts with customers | [1] | 2,669 | 1,184 | 1,329 |
Other Noninterest Income [Member] | Transferred at Point in Time [Member] | ||||
Revenues from contracts with customers | 2,494 | 989 | 958 | |
Other Noninterest Income [Member] | Transferred over Time [Member] | ||||
Revenues from contracts with customers | $ 175 | $ 195 | $ 371 | |
[1] | Revenue from contracts with customers in scope of ASC 606. |
Employee Benefits (Narrative) (
Employee Benefits (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | 120 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 30, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, employer matching contribution amounts | $ 2,800 | $ 2,700 | $ 2,500 | |
Deferred compensation plan, accrued liability | $ 19,400 | 17,900 | ||
Maximum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, employer matching contribution | 3.00% | |||
Qualified Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Funded (unfunded) status at end of period | $ 7,187 | 10,608 | ||
Accumulated benefit obligation | $ 87,900 | 76,600 | ||
Fair value of equity securities, maximum percentage held by a single issuer | 10.00% | |||
Non-Qualified Retirement Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Funded (unfunded) status at end of period | $ (17,973) | (16,438) | ||
Available-for-sale securities and other short-term investments, rabbi trusts | 13,700 | 14,300 | ||
Accumulated benefit obligation | 16,400 | $ 14,900 | ||
Estimated future employer contributions in next fiscal year | $ 896 | |||
Non-elective Employer Contribution [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, employer matching contribution | 4.00% | |||
Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Transition Period Pension Plan Amendment | 10 |
Employee Benefits (Schedule of
Employee Benefits (Schedule of Net Funded (Unfunded) Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Qualified Pension Plan [Member] | ||||
Change in Benefit Obligation: | ||||
Benefit obligation at beginning of period | $ 83,141 | $ 73,380 | ||
Service cost | [1] | 2,164 | 2,037 | $ 2,244 |
Interest cost | [2] | 2,505 | 2,967 | 2,715 |
Actuarial (gain) loss | 10,378 | 10,453 | ||
Benefits paid | (3,334) | (5,546) | ||
Administrative expenses | (112) | (150) | ||
Benefit obligation at end of period | 94,742 | 83,141 | 73,380 | |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of period | 93,749 | 86,180 | ||
Actual return on plan assets | 11,626 | 13,265 | ||
Employer contributions | 0 | 0 | ||
Benefits paid | (3,334) | (5,546) | ||
Administrative expenses | (112) | (150) | ||
Fair value of plan assets at end of period | 101,929 | 93,749 | 86,180 | |
Funded (unfunded) status at end of period | 7,187 | 10,608 | ||
Non-Qualified Retirement Plans [Member] | ||||
Change in Benefit Obligation: | ||||
Benefit obligation at beginning of period | 16,438 | 14,626 | ||
Service cost | [1] | 170 | 126 | 108 |
Interest cost | [2] | 465 | 563 | 475 |
Actuarial (gain) loss | 1,803 | 2,028 | ||
Benefits paid | (903) | (905) | ||
Administrative expenses | 0 | 0 | ||
Benefit obligation at end of period | 17,973 | 16,438 | 14,626 | |
Change in Plan Assets: | ||||
Fair value of plan assets at beginning of period | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Employer contributions | 903 | 905 | ||
Benefits paid | (903) | (905) | ||
Administrative expenses | 0 | 0 | ||
Fair value of plan assets at end of period | 0 | 0 | $ 0 | |
Funded (unfunded) status at end of period | $ (17,973) | $ (16,438) | ||
[1] | Included in salaries and employee benefits expense in the Consolidated Statements of Income. | |||
[2] | Included in other expenses in the Consolidated Statements of Income. |
Employee Benefits (Components o
Employee Benefits (Components of Accumulated Other Comprehensive Income(Loss)) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Qualified Pension Plan [Member] | ||
Components of Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | ||
Net actuarial loss included in AOCI, pre-tax | $ 12,051 | $ 10,343 |
Non-Qualified Retirement Plans [Member] | ||
Components of Accumulated Other Comprehensive Income (Loss), before Tax [Abstract] | ||
Net actuarial loss included in AOCI, pre-tax | $ 8,648 | $ 7,405 |
Employee Benefits (Components_2
Employee Benefits (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) (on a pre-tax basis): | ||||
Net loss (gain) | $ 5,093 | $ 3,710 | $ (3,098) | |
Prior service credit | [1] | 0 | (12) | (18) |
Recognized in other comprehensive income (loss) | (2,952) | (2,526) | 4,981 | |
Qualified Pension Plan [Member] | ||||
Net Periodic Benefit Cost: | ||||
Service cost | [2] | 2,164 | 2,037 | 2,244 |
Interest cost | [3] | 2,505 | 2,967 | 2,715 |
Expected return on plan assets | [3] | (4,538) | (4,495) | (5,272) |
Amortization of prior service credit | [3] | 0 | (16) | (23) |
Recognized net actuarial loss | [3] | 1,582 | 792 | 1,496 |
Net periodic benefit cost | 1,713 | 1,285 | 1,160 | |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) (on a pre-tax basis): | ||||
Net loss (gain) | 1,708 | 890 | (4,342) | |
Prior service credit | 0 | 16 | 23 | |
Recognized in other comprehensive income (loss) | 1,708 | 906 | (4,319) | |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | 3,421 | 2,191 | (3,159) | |
Non-Qualified Retirement Plans [Member] | ||||
Net Periodic Benefit Cost: | ||||
Service cost | [2] | 170 | 126 | 108 |
Interest cost | [3] | 465 | 563 | 475 |
Expected return on plan assets | [3] | 0 | 0 | 0 |
Amortization of prior service credit | [3] | 0 | 0 | (1) |
Recognized net actuarial loss | [3] | 560 | 408 | 411 |
Net periodic benefit cost | 1,195 | 1,097 | 993 | |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) (on a pre-tax basis): | ||||
Net loss (gain) | 1,244 | 1,620 | (663) | |
Prior service credit | 0 | 0 | 1 | |
Recognized in other comprehensive income (loss) | 1,244 | 1,620 | (662) | |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ 2,439 | $ 2,717 | $ 331 | |
[1] | The pre-tax amounts are included in other expenses in the Consolidated Statements of Income. | |||
[2] | Included in salaries and employee benefits expense in the Consolidated Statements of Income. | |||
[3] | Included in other expenses in the Consolidated Statements of Income. |
Employee Benefits (Weighted-Ave
Employee Benefits (Weighted-Average Assumptions Used) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Qualified Pension Plan [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 2.71% | 3.42% | |
Rate of compensation increase | 3.75% | 3.75% | |
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% | 3.69% |
Equivalent single discount rate for service cost | 3.54% | 4.44% | 3.76% |
Equivalent single discount rate for interest cost | 3.07% | 4.12% | 3.42% |
Expected long-term return on plan assets | 5.75% | 5.75% | 6.75% |
Rate of compensation increase | 3.75% | 3.75% | 3.75% |
Non-Qualified Retirement Plans [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 2.50% | 3.30% | |
Rate of compensation increase | 3.75% | 3.75% | |
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% | 3.58% |
Equivalent single discount rate for service cost | 3.62% | 4.48% | 3.79% |
Equivalent single discount rate for interest cost | 2.93% | 3.98% | 3.22% |
Rate of compensation increase | 3.75% | 3.75% | 3.75% |
Employee Benefits (Schedule o_2
Employee Benefits (Schedule of Fair Value of Qualified Pension Plan Assets) (Details) - Qualified Pension Plan [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 101,929 | $ 93,749 | $ 86,180 | |
Asset allocations by category | 100.00% | 100.00% | ||
Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 60,942 | $ 52,103 | ||
Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 40,987 | 41,646 | ||
Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Cash and cash equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 14,427 | $ 9,902 | ||
Asset allocations by category | 14.20% | 10.60% | ||
Cash and cash equivalents [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 14,427 | $ 9,902 | ||
Cash and cash equivalents [Member] | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Cash and cash equivalents [Member] | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Obligations of U.S government-sponsored enterprises [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 29,449 | 28,615 | ||
Obligations of U.S government-sponsored enterprises [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Obligations of U.S government-sponsored enterprises [Member] | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 29,449 | 28,615 | ||
Obligations of U.S government-sponsored enterprises [Member] | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Obligations of states and political subdivisions [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 2,327 | 2,998 | ||
Obligations of states and political subdivisions [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Obligations of states and political subdivisions [Member] | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 2,327 | 2,998 | ||
Obligations of states and political subdivisions [Member] | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Corporate bonds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 9,211 | 10,033 | ||
Corporate bonds [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Corporate bonds [Member] | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 9,211 | 10,033 | ||
Corporate bonds [Member] | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Common stocks [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 17,150 | 14,593 | ||
Common stocks [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 17,150 | 14,593 | ||
Common stocks [Member] | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Common stocks [Member] | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Mutual funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 29,365 | 27,608 | ||
Mutual funds [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 29,365 | 27,608 | ||
Mutual funds [Member] | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Mutual funds [Member] | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 0 | $ 0 | ||
Fixed income securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Asset allocations by category | [1] | 40.20% | 44.40% | |
Equity securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Asset allocations by category | [2] | 45.60% | 45.00% | |
[1] | Includes obligations of U.S. government agencies and U.S. government-sponsored enterprises, obligations of states and political subdivisions and corporate bonds. | |||
[2] | Includes common stocks and mutual funds. |
Employee Benefits (Estimated Fu
Employee Benefits (Estimated Future Benefit Payments) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Qualified Pension Plan [Member] | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
Expected Future Payments, Next Twelve Months | $ 5,608 |
Expected Future Payments, Year Two | 4,255 |
Expected Future Payments, Year Three | 4,804 |
Expected Future Payments, Year Four | 4,830 |
Expected Future Payments, Year Five | 6,096 |
Expected Future Payments, Thereafter | 27,942 |
Non-Qualified Retirement Plans [Member] | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
Expected Future Payments, Next Twelve Months | 896 |
Expected Future Payments, Year Two | 886 |
Expected Future Payments, Year Three | 881 |
Expected Future Payments, Year Four | 874 |
Expected Future Payments, Year Five | 871 |
Expected Future Payments, Thereafter | $ 4,460 |
Share-Based Compensation Arra_3
Share-Based Compensation Arrangements (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 23, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unrecognized compensation cost | $ 5,200 | |||
Weighted average recognition period (in years) | 1 year 11 months 4 days | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share options exercised total intrinsic value | $ 46 | $ 580 | $ 833 | |
Cliff vesting period (years) | 3 years | 3 years | 3 years | |
Time Based Nonvested Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Nonvested share units | 27,385 | 26,070 | 13,430 | |
Performance Based Nonvested Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Nonvested share units | 71,007 | |||
Performance share awards, shares vesting | 156,367 | |||
Minimum [Member] | Time Based Nonvested Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cliff vesting period (years) | 3 years | |||
Minimum [Member] | Performance Based Nonvested Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cliff vesting period (years) | 3 years | |||
Maximum [Member] | Time Based Nonvested Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cliff vesting period (years) | 5 years | |||
Maximum [Member] | Performance Based Nonvested Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cliff vesting period (years) | 5 years | |||
2013 Stock Option and Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized | 1,748,250 |
Share-Based Compensation Arra_4
Share-Based Compensation Arrangements (Compensation Cost for Share-based Compensation Arrangements) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Share-based Payment Arrangement [Abstract] | ||||
Share-based compensation expense | $ 3,766 | $ 3,124 | $ 2,602 | |
Related income tax benefits | [1] | 801 | 982 | 1,108 |
Excess Tax Expense (Benefit) from Stock Option Exercises and Issuance of Other Compensation-related Equity Instruments | $ (103) | $ 248 | $ 496 | |
[1] | Includes $103 thousand of excess tax expenses recognized upon the settlement of share-based compensation awards in 2020. Includes $248 thousand and $496 thousand, respectively, of excess tax benefits recognized upon the settlement of share-based compensation awards in 2019 and 2018. |
Share-Based Compensation Arra_5
Share-Based Compensation Arrangements (Share Options Fair Value Assumptions) (Details) - Stock Options [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted | 81,530 | 61,800 | 47,950 |
Cliff vesting period (years) | 3 years | 3 years | 3 years |
Expected term (years) | 6 years 6 months | 6 years 6 months | 6 years 6 months |
Expected dividend yield | 3.69% | 3.40% | 3.39% |
Weighted average expected volatility | 29.89% | 23.05% | 22.73% |
Weighted average risk-free interest rate | 0.46% | 1.71% | 3.14% |
Weighted average grant-date fair value | $ 5.75 | $ 7.44 | $ 9.74 |
Share-Based Compensation Arra_6
Share-Based Compensation Arrangements (Share Options Activity) (Details) - Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Share Options: | |||
Beginning of period | 248,815 | ||
Granted | 81,530 | 61,800 | 47,950 |
Exercised | (4,100) | ||
Forfeited or expired | 0 | ||
End of period | 326,245 | 248,815 | |
Options exercisable | 134,965 | ||
Options expected to vest in future periods | 191,280 | ||
Weighted Average Exercise Price (in dollars per share): | |||
Beginning of period | $ 45.38 | ||
Granted | 32.23 | ||
Exercised | 17.52 | ||
Forfeited or expired | 0 | ||
End of period | 42.44 | $ 45.38 | |
Options exercisable | 41.40 | ||
Options expected to vest in future periods | $ 43.18 | ||
Outstanding Weighted Average Remaining Contractual Term | 7 years 2 months 23 days | ||
Exercisable Weighted Average Remaining Contractual Term | 4 years 9 months 7 days | ||
Expected to Vest Weighted Average Remaining Contractual Term | 8 years 11 months 19 days | ||
Outstanding Aggregate Intrinsic Value | $ 2,011 | ||
Exercisable Aggregate Intrinsic Value | 986 | ||
Expected to Vest Aggregate Intrinsic Value | $ 1,025 |
Share-Based Compensation Arra_7
Share-Based Compensation Arrangements (Stock Options Outstanding and Options Exercisable) (Details) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding, Number of Share Options | shares | 326,245 |
Options Outstanding, Weighted Average Remaining Life (Years) | 7 years 2 months 23 days |
Options Outstanding, Weighted Average Exercise Price | $ 42.44 |
Options Exercisable, Number of Share Options | shares | 134,965 |
Options Exercisable, Weighted Average Exercise Price | $ 41.40 |
$20.01 to $30.00 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price Ranges, Upper Range Limit | $ 30 |
Options Outstanding, Number of Share Options | shares | 22,015 |
Options Outstanding, Weighted Average Remaining Life (Years) | 1 year 1 month 20 days |
Options Outstanding, Weighted Average Exercise Price | $ 22.89 |
Options Exercisable, Number of Share Options | shares | 22,015 |
Options Exercisable, Weighted Average Exercise Price | $ 22.89 |
Exercise Price Ranges, Lower Range Limit | 20.01 |
$30.01 to $40.00 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price Ranges, Upper Range Limit | $ 40 |
Options Outstanding, Number of Share Options | shares | 123,405 |
Options Outstanding, Weighted Average Remaining Life (Years) | 7 years 9 months 25 days |
Options Outstanding, Weighted Average Exercise Price | $ 33.57 |
Options Exercisable, Number of Share Options | shares | 41,875 |
Options Exercisable, Weighted Average Exercise Price | $ 36.17 |
Exercise Price Ranges, Lower Range Limit | 30.01 |
$40.01 to $50.00 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price Ranges, Upper Range Limit | $ 50 |
Options Outstanding, Number of Share Options | shares | 93,050 |
Options Outstanding, Weighted Average Remaining Life (Years) | 7 years 9 months 14 days |
Options Outstanding, Weighted Average Exercise Price | $ 45.83 |
Options Exercisable, Number of Share Options | shares | 31,250 |
Options Exercisable, Weighted Average Exercise Price | $ 40.25 |
Exercise Price Ranges, Lower Range Limit | 40.01 |
$50.01 to $60.00 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price Ranges, Upper Range Limit | $ 60 |
Options Outstanding, Number of Share Options | shares | 87,775 |
Options Outstanding, Weighted Average Remaining Life (Years) | 7 years 4 months 2 days |
Options Outstanding, Weighted Average Exercise Price | $ 56.24 |
Options Exercisable, Number of Share Options | shares | 39,825 |
Options Exercisable, Weighted Average Exercise Price | $ 58.05 |
Exercise Price Ranges, Lower Range Limit | $ 50.01 |
Share-Based Compensation Arra_8
Share-Based Compensation Arrangements (Nonvested Share Units Activity) (Details) - Time Based Nonvested Shares [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Shares: | |||
Beginning of period | 53,890 | ||
Granted | 27,385 | 26,070 | 13,430 |
Vested | (15,160) | ||
Forfeited | 0 | ||
End of period | 66,115 | 53,890 | |
Weighted Average Grant Date Fair Value (in dollars per share): | |||
Beginning of period | $ 52.01 | ||
Granted | 35.38 | ||
Vested | 53.39 | ||
Forfeited | 0 | ||
End of period | $ 44.80 | $ 52.01 |
Share-Based Compensation Arra_9
Share-Based Compensation Arrangements (Nonvested Performance Share Unit Awards Outstanding) (Details) - Performance Based Nonvested Shares [Member] | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share awards, shares vesting | 156,367 |
2020 Grant [Domain] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share awards granted, grant date fair value | $ / shares | $ 34.22 |
Performance share awards, shares vesting percentages | 140.00% |
Performance share awards, shares vesting | 65,632 |
2019 Grant [Domain] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share awards granted, grant date fair value | $ / shares | $ 52.84 |
Performance share awards, shares vesting percentages | 148.00% |
Performance share awards, shares vesting | 46,320 |
2018 Grant [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance share awards granted, grant date fair value | $ / shares | $ 54.25 |
Performance share awards, shares vesting percentages | 150.00% |
Performance share awards, shares vesting | 44,415 |
Share-Based Compensation Arr_10
Share-Based Compensation Arrangements (Nonvested Performance Share Units Activity) (Details) - Performance Based Nonvested Shares [Member] | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Number of Shares: | |
Beginning of period | shares | 108,964 |
Granted | shares | 71,007 |
Vested | shares | (23,604) |
Forfeited | shares | 0 |
End of period | shares | 156,367 |
Weighted Average Grant Date Fair Value (in dollars per share): | |
Beginning of period | $ / shares | $ 53.16 |
Granted | $ / shares | 35.70 |
Vested | $ / shares | 51.85 |
Forfeited | $ / shares | 0 |
End of period | $ / shares | $ 45.43 |
Business Segments (Statement of
Business Segments (Statement of Operations and Total Assets by Reportable Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net interest income (expense) | $ 32,243 | $ 31,654 | $ 30,945 | $ 32,602 | $ 31,994 | $ 32,978 | $ 33,858 | $ 34,584 | $ 127,444 | [1] | $ 133,414 | [1] | $ 132,290 | [1] |
Provision for credit losses | 1,781 | 1,325 | 2,200 | 7,036 | 0 | 400 | 525 | 650 | 12,342 | 1,575 | 1,550 | |||
Net interest income after provision for credit losses | 30,462 | 30,329 | 28,745 | 25,566 | 31,994 | 32,578 | 33,333 | 33,934 | 115,102 | 131,839 | 130,740 | |||
Noninterest income | 27,727 | 25,468 | 26,320 | 19,927 | 16,618 | 18,342 | 16,753 | 15,367 | 99,442 | [1] | 67,080 | [1] | 62,114 | [1] |
Depreciation and amortization expense | 4,090 | 4,234 | 4,261 | |||||||||||
Other noninterest expenses | 121,294 | 106,506 | 101,901 | |||||||||||
Noninterest expense | 34,109 | 32,344 | 28,478 | 30,453 | 28,755 | 26,870 | 28,151 | 26,964 | 125,384 | 110,740 | 106,162 | |||
Income before income taxes | 24,080 | 23,453 | 26,587 | 15,040 | 19,857 | 24,050 | 21,935 | 22,337 | 89,160 | 88,179 | 86,692 | |||
Income tax expense | 5,514 | 5,131 | 5,547 | 3,139 | 4,321 | 5,236 | 4,662 | 4,842 | 19,331 | 19,061 | 18,260 | |||
Net income | 18,566 | $ 18,322 | $ 21,040 | $ 11,901 | 15,536 | $ 18,814 | $ 17,273 | $ 17,495 | 69,829 | 69,118 | 68,432 | |||
Total assets | 5,713,169 | 5,292,659 | 5,713,169 | 5,292,659 | 5,010,766 | |||||||||
Expenditures for long-lived assets | 3,406 | 3,132 | 3,974 | |||||||||||
Commercial Banking [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net interest income (expense) | 128,600 | 112,414 | 106,668 | |||||||||||
Provision for credit losses | 12,342 | 1,575 | 1,550 | |||||||||||
Net interest income after provision for credit losses | 116,258 | 110,839 | 105,118 | |||||||||||
Noninterest income | 61,463 | 27,857 | 21,509 | |||||||||||
Depreciation and amortization expense | 2,512 | 2,630 | 2,589 | |||||||||||
Other noninterest expenses | 77,157 | 66,517 | 62,673 | |||||||||||
Noninterest expense | 79,669 | 69,147 | 65,262 | |||||||||||
Income before income taxes | 98,052 | 69,549 | 61,365 | |||||||||||
Income tax expense | 21,216 | 15,189 | 13,149 | |||||||||||
Net income | 76,836 | 54,360 | 48,216 | |||||||||||
Total assets | 4,501,875 | 4,070,594 | 4,501,875 | 4,070,594 | 3,804,021 | |||||||||
Expenditures for long-lived assets | 3,097 | 2,521 | 3,415 | |||||||||||
Wealth Management Services [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net interest income (expense) | (141) | (438) | (334) | |||||||||||
Provision for credit losses | 0 | 0 | 0 | |||||||||||
Net interest income after provision for credit losses | (141) | (438) | (334) | |||||||||||
Noninterest income | 35,454 | 36,856 | 38,341 | |||||||||||
Depreciation and amortization expense | 1,412 | 1,445 | 1,501 | |||||||||||
Other noninterest expenses | 27,367 | 26,057 | 26,222 | |||||||||||
Noninterest expense | 28,779 | 27,502 | 27,723 | |||||||||||
Income before income taxes | 6,534 | 8,916 | 10,284 | |||||||||||
Income tax expense | 1,746 | 2,308 | 2,577 | |||||||||||
Net income | 4,788 | 6,608 | 7,707 | |||||||||||
Total assets | 74,958 | 74,990 | 74,958 | 74,990 | 71,254 | |||||||||
Expenditures for long-lived assets | 158 | 445 | 407 | |||||||||||
Corporate [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net interest income (expense) | (1,015) | 21,438 | 25,956 | |||||||||||
Provision for credit losses | 0 | 0 | 0 | |||||||||||
Net interest income after provision for credit losses | (1,015) | 21,438 | 25,956 | |||||||||||
Noninterest income | 2,525 | 2,367 | 2,264 | |||||||||||
Depreciation and amortization expense | 166 | 159 | 171 | |||||||||||
Other noninterest expenses | 16,770 | 13,932 | 13,006 | |||||||||||
Noninterest expense | 16,936 | 14,091 | 13,177 | |||||||||||
Income before income taxes | (15,426) | 9,714 | 15,043 | |||||||||||
Income tax expense | (3,631) | 1,564 | 2,534 | |||||||||||
Net income | (11,795) | 8,150 | 12,509 | |||||||||||
Total assets | $ 1,136,336 | $ 1,147,075 | 1,136,336 | 1,147,075 | 1,135,491 | |||||||||
Expenditures for long-lived assets | $ 151 | $ 166 | $ 152 | |||||||||||
[1] | As reported in the Consolidated Statements of Income. |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (Activity in Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||||
Change in fair value of securities available for sale, before tax | $ 8,784 | $ 26,074 | $ (12,063) | ||
Change in fair value of securities available for sale, tax | 2,129 | 6,127 | (2,835) | ||
Change is fair value of securities available for sale | 6,655 | 19,947 | (9,228) | ||
Net (gains) losses on securities classified into earnings, before tax | 0 | 53 | [1] | 0 | |
Net (gains) losses on securities classified into earnings, tax | 0 | 12 | [1] | 0 | |
Net (gains) losses on securities classified into earnings | 0 | 41 | [1] | 0 | |
Net change in fair value of securities available for sale, before tax | 8,784 | 26,127 | (12,063) | ||
Net change in fair value of securities available for sale, tax | 2,129 | 6,139 | (2,835) | ||
Net change in fair value of available for sale debt securities | 6,655 | 19,988 | (9,228) | ||
Net change in fair value of cash flow hedges, before tax | (2,003) | (1,444) | 639 | ||
Net change in fair value of cash flow hedges, tax | (482) | (339) | 151 | ||
Change in fair value of cash flow hedges | (1,521) | (1,105) | 488 | ||
Net cash flow hedge losses reclassified into earnings, before tax | [2] | 1,136 | 159 | 170 | |
Net cash flow hedge losses reclassified into earnings, tax | [2] | 269 | 38 | 39 | |
Net cash flow hedge losses reclassified into earnings | [2] | 867 | 121 | 131 | |
Change in fair value of cash flow hedges, before tax | (867) | (1,285) | 809 | ||
Change in fair value of cash flow hedges, tax | (213) | (301) | 190 | ||
Net change in fair value of cash flow hedges | (654) | (984) | 619 | ||
Defined benefit plan obligation adjustment, before tax | (5,093) | (3,710) | 3,098 | ||
Defined benefit plan obligation adjustment, tax | (1,197) | (872) | 729 | ||
Defined benefit plan obligation adjustment | (3,896) | (2,838) | 2,369 | ||
Amortization of net actuarial losses, before tax | [3] | 2,141 | 1,200 | 1,907 | |
Amortization of net actuarial losses, tax | [3] | 400 | 282 | 448 | |
Amortization of net actuarial losses | [3] | 1,741 | 918 | 1,459 | |
Amortization of net prior service credits, before tax | [3] | 0 | (16) | (24) | |
Amortization of net prior service credits, tax | [3] | 0 | (4) | (6) | |
Prior service credit | [3] | 0 | (12) | (18) | |
Recognized in other comprehensive income (loss) | (2,952) | (2,526) | 4,981 | ||
Net change in defined benefit plan obligations, tax | (797) | (594) | 1,171 | ||
Net change in defined benefit plan obligations | (2,155) | (1,932) | 3,810 | ||
Total other comprehensive income (loss), before tax | 4,965 | 22,316 | (6,273) | ||
Total other comprehensive income (loss), tax | 1,119 | 5,244 | (1,474) | ||
Total other comprehensive income (loss), net of tax | 3,846 | 17,072 | (4,799) | ||
Net Unrealized Gains (Losses) on AFS Securities [Member] | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||||
Total other comprehensive income (loss), net of tax | $ 6,655 | $ 19,988 | $ (9,228) | ||
[1] | The pre-tax amount is reported as net realized losses on securities in the Consolidated Statements of Income. | ||||
[2] | 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 Consolidated Statements of Income. | ||||
[3] | The pre-tax amounts are included in other expenses in the Consolidated Statements of Income. |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated other comprehensive income (loss), beginning balance | $ (11,237) | ||
Net other comprehensive income (loss) | 3,846 | $ 17,072 | $ (4,799) |
Accumulated other comprehensive income (loss), ending balance | (7,391) | (11,237) | |
Net Unrealized Gains (Losses) on AFS Securities [Member] | |||
Accumulated other comprehensive income (loss), beginning balance | 3,226 | (16,762) | (7,534) |
Other comprehensive income (loss) before reclassifications, net of tax | 6,655 | 19,947 | (9,228) |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 41 | 0 |
Net other comprehensive income (loss) | 6,655 | 19,988 | (9,228) |
Accumulated other comprehensive income (loss), ending balance | 9,881 | 3,226 | (16,762) |
Net Unrealized Gains (Losses) on Cash Flow Hedges [Member] | |||
Accumulated other comprehensive income (loss), beginning balance | (793) | 191 | (428) |
Other comprehensive income (loss) before reclassifications, net of tax | (1,521) | (1,105) | 488 |
Amounts reclassified from accumulated other comprehensive income, net of tax | 867 | 121 | 131 |
Net other comprehensive income (loss) | (654) | (984) | 619 |
Accumulated other comprehensive income (loss), ending balance | (1,447) | (793) | 191 |
Defined Benefit Pension Plan Adjustment [Member] | |||
Accumulated other comprehensive income (loss), beginning balance | (13,670) | (11,738) | (15,548) |
Other comprehensive income (loss) before reclassifications, net of tax | (3,896) | (2,838) | 2,369 |
Amounts reclassified from accumulated other comprehensive income, net of tax | 1,741 | 906 | 1,441 |
Net other comprehensive income (loss) | (2,155) | (1,932) | 3,810 |
Accumulated other comprehensive income (loss), ending balance | (15,825) | (13,670) | (11,738) |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated other comprehensive income (loss), beginning balance | (11,237) | (28,309) | (23,510) |
Other comprehensive income (loss) before reclassifications, net of tax | 1,238 | 16,004 | (6,371) |
Amounts reclassified from accumulated other comprehensive income, net of tax | 2,608 | 1,068 | 1,572 |
Net other comprehensive income (loss) | 3,846 | 17,072 | (4,799) |
Accumulated other comprehensive income (loss), ending balance | $ (7,391) | $ (11,237) | $ (28,309) |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 18,566 | $ 18,322 | $ 21,040 | $ 11,901 | $ 15,536 | $ 18,814 | $ 17,273 | $ 17,495 | $ 69,829 | $ 69,118 | $ 68,432 |
Less: dividends and undistributed earnings allocated to participating securities | (152) | (139) | (144) | ||||||||
Net income available to common shareholders | $ 69,677 | $ 68,979 | $ 68,288 | ||||||||
Weighted average common shares outstanding - basic | 17,264,000 | 17,260,000 | 17,257,000 | 17,345,000 | 17,351,000 | 17,338,000 | 17,330,000 | 17,304,000 | 17,282,000 | 17,331,000 | 17,272,000 |
Basic earnings per common share (in dollars per share) | $ 1.07 | $ 1.06 | $ 1.22 | $ 0.68 | $ 0.89 | $ 1.08 | $ 0.99 | $ 1.01 | $ 4.03 | $ 3.98 | $ 3.95 |
Less dividends and undistributed earnings allocated to participating securities | $ (151) | $ (139) | $ (144) | ||||||||
Net income available to common shareholders | $ 18,524 | $ 18,285 | $ 21,000 | $ 11,869 | $ 15,502 | $ 18,778 | $ 17,238 | $ 17,461 | $ 69,678 | $ 68,979 | $ 68,288 |
Dilutive effect of common stock equivalents (in shares) | 120,000 | 83,000 | 119,000 | ||||||||
Weighted average common shares outstanding - diluted | 17,360,000 | 17,317,000 | 17,292,000 | 17,441,000 | 17,436,000 | 17,414,000 | 17,405,000 | 17,401,000 | 17,402,000 | 17,414,000 | 17,391,000 |
Diluted earnings per common share (in dollars per share) | $ 1.07 | $ 1.06 | $ 1.21 | $ 0.68 | $ 0.89 | $ 1.08 | $ 0.99 | $ 1 | $ 4 | $ 3.96 | $ 3.93 |
Antidilutive common stock equivalents | 223,506 | 100,643 | 55,821 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Line Items] | |||
Adoption of ASC 326 | $ 1,483 | ||
ACL on unfunded commitments | $ 2,382 | $ 293 | |
Unpaid principal balance of loans repurchased | 1,100 | 1,700 | |
Reserve for loans repurchases | 300 | 170 | |
Unfunded Loan Commitment [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Adoption of ASC 326 | $ 1,500 | ||
Commitments to extend credit on standby letters of credit [Member] | Commitments to Extend Credit [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Contract amount | $ 11,709 | $ 13,710 |
Commitments and Contingencies_3
Commitments and Contingencies (Financial Instruments with Off Balance Sheet Risk) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Interest rate lock commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | $ 167,671 | $ 51,439 |
Forward sale commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 279,653 | 94,829 |
Interest rate swaps with customers [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 991,002 | 813,458 |
Mirror swaps with counterparties [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 991,002 | 813,458 |
Risk participation-in agreement [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Notional amount | 92,717 | 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 [Member] | Commitments to extend credit on commerical loans [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract amount | 453,493 | 471,338 |
Commitments to Extend Credit [Member] | Commitments to extend credit on home equity lines [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract amount | 319,744 | 295,687 |
Commitments to Extend Credit [Member] | Commitments to extend credit on other loans [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract amount | 89,078 | 88,613 |
Commitments to Extend Credit [Member] | Commitments to extend credit on standby letters of credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contract amount | $ 11,709 | $ 13,710 |
Commitments and Contingencies_4
Commitments and Contingencies (ACL on Unfunded Commitments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | |
ACL on unfunded commitments | $ 2,382 | $ 293 | |
Adoption of ASC 326 | $ 1,483 | ||
Provision | 606 | ||
Commercial Real Estate [Member] | |||
ACL on unfunded commitments | 907 | 136 | |
Adoption of ASC 326 | 817 | ||
Provision | (46) | ||
Commercial & Industrial [Member] | |||
ACL on unfunded commitments | 1,402 | 144 | |
Adoption of ASC 326 | 626 | ||
Provision | 632 | ||
Total Commercial [Member] | |||
ACL on unfunded commitments | 2,309 | 280 | |
Adoption of ASC 326 | 1,443 | ||
Provision | 586 | ||
Residential Real Estate [Member] | |||
ACL on unfunded commitments | 54 | 6 | |
Adoption of ASC 326 | 34 | ||
Provision | 14 | ||
Home Equity [Member] | |||
ACL on unfunded commitments | 0 | 0 | |
Adoption of ASC 326 | 0 | ||
Provision | 0 | ||
Other Consumer [Member] | |||
ACL on unfunded commitments | 19 | 7 | |
Adoption of ASC 326 | 6 | ||
Provision | 6 | ||
Total Consumer [Member] | |||
ACL on unfunded commitments | 19 | $ 7 | |
Adoption of ASC 326 | $ 6 | ||
Provision | $ 6 |
Parent Company Financial Stat_3
Parent Company Financial Statements (Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||||
Other assets | $ 159,749 | $ 100,934 | ||
Total assets | 5,713,169 | 5,292,659 | $ 5,010,766 | |
Liabilities: | ||||
Junior subordinated debentures | 22,681 | 22,681 | ||
Other liabilities | 152,364 | 97,279 | ||
Total liabilities | 5,178,974 | 4,789,167 | ||
Shareholders’ Equity: | ||||
Common stock | 1,085 | 1,085 | ||
Paid-in capital | 125,610 | 123,281 | ||
Retained earnings | 418,246 | 390,363 | ||
Accumulated other comprehensive loss | (7,391) | (11,237) | ||
Treasury stock, at cost | (3,355) | 0 | ||
Total shareholders’ equity | 534,195 | 503,492 | $ 448,184 | $ 413,284 |
Total liabilities and shareholders’ equity | 5,713,169 | 5,292,659 | ||
Parent Company [Member] | ||||
Assets: | ||||
Cash on deposit with bank subsidiary | 1,658 | 1,838 | ||
Dividends receivable from bank subsidiary | 11,836 | 9,575 | ||
Other assets | 124 | 232 | ||
Total assets | 566,508 | 535,496 | ||
Liabilities: | ||||
Junior subordinated debentures | 22,681 | 22,681 | ||
Dividends payable | 9,592 | 9,252 | ||
Other liabilities | 40 | 71 | ||
Total liabilities | 32,313 | 32,004 | ||
Shareholders’ Equity: | ||||
Common stock | 1,085 | 1,085 | ||
Paid-in capital | 125,610 | 123,281 | ||
Retained earnings | 418,246 | 390,363 | ||
Accumulated other comprehensive loss | (7,391) | (11,237) | ||
Treasury stock, at cost | (3,355) | 0 | ||
Total shareholders’ equity | 534,195 | 503,492 | ||
Total liabilities and shareholders’ equity | 566,508 | 535,496 | ||
Bank [Member] | ||||
Assets: | ||||
Investment in subsidiaries at equity value: | 550,986 | 521,969 | ||
Non-bank [Member] | ||||
Assets: | ||||
Investment in subsidiaries at equity value: | $ 1,904 | $ 1,882 |
Parent Company Financial Stat_4
Parent Company Financial Statements (Balance Sheet Equity Details) (Details) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0625 | $ 0.0625 |
Common stock, shares authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, shares issued (in shares) | 17,363,457 | 17,363,455 |
Common stock, shares outstanding (in shares) | 17,265,337 | 17,363,455 |
Treasury stock (in shares) | 98,120 |
Parent Company Financial Stat_5
Parent Company Financial Statements (Statement of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Income: | ||||||||||||
Total revenues | [1] | $ 226,886 | $ 200,494 | $ 194,404 | ||||||||
Expenses: | ||||||||||||
Interest on junior subordinated debentures | 641 | 980 | 869 | |||||||||
Legal and professional fees | 3,747 | 2,535 | 2,427 | |||||||||
Change in fair value of contingent consideration | 0 | 0 | (187) | |||||||||
Income before income taxes | $ 24,080 | $ 23,453 | $ 26,587 | $ 15,040 | $ 19,857 | $ 24,050 | $ 21,935 | $ 22,337 | 89,160 | 88,179 | 86,692 | |
Income tax benefit | (5,514) | (5,131) | (5,547) | (3,139) | (4,321) | (5,236) | (4,662) | (4,842) | (19,331) | (19,061) | (18,260) | |
Net income | $ 18,566 | $ 18,322 | $ 21,040 | $ 11,901 | $ 15,536 | $ 18,814 | $ 17,273 | $ 17,495 | 69,829 | 69,118 | 68,432 | |
Parent Company [Member] | ||||||||||||
Income: | ||||||||||||
Total revenues | 43,156 | 36,823 | 32,418 | |||||||||
Expenses: | ||||||||||||
Interest on junior subordinated debentures | 641 | 980 | 869 | |||||||||
Legal and professional fees | 210 | 147 | 187 | |||||||||
Change in fair value of contingent consideration | 0 | 0 | (187) | |||||||||
Other | 349 | 337 | 324 | |||||||||
Total expenses | 1,200 | 1,464 | 1,193 | |||||||||
Income before income taxes | 41,956 | 35,359 | 31,225 | |||||||||
Income tax benefit | 248 | 301 | 284 | |||||||||
Income before equity in undistributed earnings of subsidiaries | 42,204 | 35,660 | 31,509 | |||||||||
Net income | 69,829 | 69,118 | 68,432 | |||||||||
Bank [Member] | ||||||||||||
Income: | ||||||||||||
Dividends from subsidiaries | 43,139 | 36,796 | 32,394 | |||||||||
Expenses: | ||||||||||||
Equity in undistributed earnings (losses) of subsidiaries | 27,603 | 33,445 | 36,876 | |||||||||
Non-bank [Member] | ||||||||||||
Income: | ||||||||||||
Dividends from subsidiaries | 17 | 27 | 24 | |||||||||
Expenses: | ||||||||||||
Equity in undistributed earnings (losses) of subsidiaries | $ 22 | $ 13 | $ 47 | |||||||||
[1] | As reported in the Consolidated Statements of Income. |
Parent Company Financial Stat_6
Parent Company Financial Statements (Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 18,566 | $ 18,322 | $ 21,040 | $ 11,901 | $ 15,536 | $ 18,814 | $ 17,273 | $ 17,495 | $ 69,829 | $ 69,118 | $ 68,432 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
(Increase) decrease in other assets | (57,730) | (27,961) | (7,456) | ||||||||
Change in fair value of contingent consideration liability | 0 | 0 | (187) | ||||||||
Tax (expense) benefit from stock option exercises and other equity awards | (103) | 248 | 496 | ||||||||
Net cash provided by (used in) operating activities | 36,478 | 73,435 | 82,876 | ||||||||
Cash flows from investing activities: | |||||||||||
Net cash provided by (used in) investing activities | (264,240) | (160,115) | (481,831) | ||||||||
Cash flows from financing activities: | |||||||||||
Payment of contingent consideration liability | 0 | 0 | (1,217) | ||||||||
Treasury stock purchased | (4,322) | 0 | 0 | ||||||||
Net proceeds from stock option exercises and issuance of other equity awards, net of awards surrendered | (470) | 273 | (671) | ||||||||
Cash dividends paid | (35,499) | (34,189) | (29,312) | ||||||||
Net cash provided by (used in) financing activities | 291,575 | 131,660 | 409,507 | ||||||||
Cash and cash equivalents at beginning of year | 138,455 | 93,475 | 138,455 | 93,475 | 82,923 | ||||||
Cash and cash equivalents at end of year | 202,268 | 138,455 | 202,268 | 138,455 | 93,475 | ||||||
Parent Company [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 69,829 | 69,118 | 68,432 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
(Increase) decrease in dividend receivable | (2,261) | (1,813) | 8 | ||||||||
(Increase) decrease in other assets | 109 | (43) | 70 | ||||||||
Increase (decrease) in accrued expenses and other liabilities | (31) | (15) | 17 | ||||||||
Change in fair value of contingent consideration liability | 0 | 0 | (187) | ||||||||
Tax (expense) benefit from stock option exercises and other equity awards | (103) | 248 | 496 | ||||||||
Other, net | 193 | (195) | (465) | ||||||||
Net cash provided by (used in) operating activities | 40,111 | 33,842 | 31,448 | ||||||||
Cash flows from financing activities: | |||||||||||
Payment of contingent consideration liability | 0 | 0 | (1,217) | ||||||||
Treasury stock purchased | (4,322) | 0 | 0 | ||||||||
Net proceeds from stock option exercises and issuance of other equity awards, net of awards surrendered | (470) | 273 | (671) | ||||||||
Cash dividends paid | (35,499) | (34,189) | (29,312) | ||||||||
Net cash provided by (used in) financing activities | (40,291) | (33,916) | (31,200) | ||||||||
Net increase (decrease) in cash and cash equivalents | (180) | (74) | 248 | ||||||||
Cash and cash equivalents at beginning of year | $ 1,838 | $ 1,912 | 1,838 | 1,912 | 1,664 | ||||||
Cash and cash equivalents at end of year | $ 1,658 | $ 1,838 | 1,658 | 1,838 | 1,912 | ||||||
Bank [Member] | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in undistributed earnings (losses) of subsidiaries | (27,603) | (33,445) | (36,876) | ||||||||
Non-bank [Member] | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in undistributed earnings (losses) of subsidiaries | $ (22) | $ (13) | $ (47) |
Selected Quarterly Consolidat_3
Selected Quarterly Consolidated Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Interest and dividend income | $ 39,374 | $ 40,834 | $ 42,612 | $ 47,116 | $ 47,383 | $ 49,527 | $ 50,559 | $ 50,194 | $ 169,936 | $ 197,663 | $ 176,407 | |||
Interest expense | 7,131 | 9,180 | 11,667 | 14,514 | 15,389 | 16,549 | 16,701 | 15,610 | 42,492 | 64,249 | 44,117 | |||
Net interest income (expense) | 32,243 | 31,654 | 30,945 | 32,602 | 31,994 | 32,978 | 33,858 | 34,584 | 127,444 | [1] | 133,414 | [1] | 132,290 | [1] |
Provision for credit losses | 1,781 | 1,325 | 2,200 | 7,036 | 0 | 400 | 525 | 650 | 12,342 | 1,575 | 1,550 | |||
Net interest income after provision for credit losses | 30,462 | 30,329 | 28,745 | 25,566 | 31,994 | 32,578 | 33,333 | 33,934 | 115,102 | 131,839 | 130,740 | |||
Noninterest income | 27,727 | 25,468 | 26,320 | 19,927 | 16,618 | 18,342 | 16,753 | 15,367 | 99,442 | [1] | 67,080 | [1] | 62,114 | [1] |
Noninterest expense | 34,109 | 32,344 | 28,478 | 30,453 | 28,755 | 26,870 | 28,151 | 26,964 | 125,384 | 110,740 | 106,162 | |||
Income before income taxes | 24,080 | 23,453 | 26,587 | 15,040 | 19,857 | 24,050 | 21,935 | 22,337 | 89,160 | 88,179 | 86,692 | |||
Income tax expense | 5,514 | 5,131 | 5,547 | 3,139 | 4,321 | 5,236 | 4,662 | 4,842 | 19,331 | 19,061 | 18,260 | |||
Net income | 18,566 | 18,322 | 21,040 | 11,901 | 15,536 | 18,814 | 17,273 | 17,495 | 69,829 | 69,118 | 68,432 | |||
Net income available to common shareholders | $ 18,524 | $ 18,285 | $ 21,000 | $ 11,869 | $ 15,502 | $ 18,778 | $ 17,238 | $ 17,461 | $ 69,678 | $ 68,979 | $ 68,288 | |||
Weighted average common shares outstanding - basic | 17,264 | 17,260 | 17,257 | 17,345 | 17,351 | 17,338 | 17,330 | 17,304 | 17,282 | 17,331 | 17,272 | |||
Weighted average common shares outstanding - diluted | 17,360 | 17,317 | 17,292 | 17,441 | 17,436 | 17,414 | 17,405 | 17,401 | 17,402 | 17,414 | 17,391 | |||
Basic earnings per common share (in dollars per share) | $ 1.07 | $ 1.06 | $ 1.22 | $ 0.68 | $ 0.89 | $ 1.08 | $ 0.99 | $ 1.01 | $ 4.03 | $ 3.98 | $ 3.95 | |||
Diluted earnings per common share (in dollars per share) | 1.07 | 1.06 | 1.21 | 0.68 | 0.89 | 1.08 | 0.99 | 1 | 4 | 3.96 | 3.93 | |||
Cash dividends declared per share (in dollars per share) | $ 0.52 | $ 0.51 | $ 0.51 | $ 0.51 | $ 0.51 | $ 0.51 | $ 0.51 | $ 0.47 | $ 2.05 | $ 2 | $ 1.76 | |||
[1] | As reported in the Consolidated Statements of Income. |