Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 08, 2019 | Jun. 30, 2018 | |
Document and Entity Information | |||
Entity Registrant Name | BAR HARBOR BANKSHARES | ||
Entity Central Index Key | 0000743367 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 15,523,628 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Public Float | $ 469,384,260 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 35,208 | $ 34,262 |
Interest-bearing deposit with the Federal Reserve Bank | 63,546 | 56,423 |
Total cash and cash equivalents | 98,754 | 90,685 |
Securities available for sale, at fair value | 725,837 | 717,242 |
Federal Home Loan Bank stock | 35,659 | 38,105 |
Total securities | 761,496 | 755,347 |
Commercial real estate | 826,699 | 826,746 |
Commercial and industrial | 404,870 | 379,423 |
Residential real estate | 1,144,698 | 1,155,682 |
Consumer | 113,960 | 123,762 |
Total loans | 2,490,227 | 2,485,613 |
Less: Allowance for loan losses | (13,866) | (12,325) |
Net loans | 2,476,361 | 2,473,288 |
Premises and equipment, net | 48,804 | 47,708 |
Other real estate owned | 2,351 | 122 |
Goodwill | 100,085 | 100,085 |
Other intangible assets, net | 7,459 | 8,383 |
Cash surrender value of bank-owned life insurance | 73,810 | 57,997 |
Deferred tax assets, net | 9,514 | 7,180 |
Other assets | 29,853 | 24,389 |
Total assets | 3,608,487 | 3,565,184 |
Liabilities | ||
Demand | 370,889 | 349,055 |
NOW | 484,717 | 466,610 |
Savings | 358,888 | 364,799 |
Money market | 335,951 | 305,275 |
Time | 932,793 | 866,346 |
Total deposits | 2,483,238 | 2,352,085 |
Borrowings: | ||
Senior | 680,823 | 786,688 |
Subordinated | 42,973 | 43,033 |
Total borrowings | 723,796 | 829,721 |
Other liabilities | 30,874 | 28,737 |
Total liabilities | 3,237,908 | 3,210,543 |
Shareholders’ equity | ||
Capital stock, par value $2.00; authorized 20,000,000 shares; issued 16,428,388 and 16,428,388 shares at December 31, 2018 and December 31, 2017, respectively | 32,857 | 32,857 |
Additional paid-in capital | 187,653 | 186,702 |
Retained earnings | 166,526 | 144,977 |
Accumulated other comprehensive loss | (11,802) | (4,554) |
Less: 905,201 and 985,462 shares of treasury stock at December 31, 2018 and December 31, 2017, respectively, at cost | (4,655) | (5,341) |
Total shareholders’ equity | 370,579 | 354,641 |
Total liabilities and shareholders’ equity | $ 3,608,487 | $ 3,565,184 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 2 | $ 2 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 16,428,388 | 16,428,388 |
Treasury stock (in shares) | 905,201 | 985,462 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest and dividend income | |||
Loans | $ 104,015 | $ 94,976 | $ 41,653 |
Securities and other | 23,436 | 21,093 | 15,834 |
Total interest and dividend income | 127,451 | 116,069 | 57,487 |
Interest expense | |||
Deposits | 19,521 | 11,307 | 6,699 |
Borrowings | 17,047 | 12,607 | 5,414 |
Total interest expense | 36,568 | 23,914 | 12,113 |
Net interest income | 90,883 | 92,155 | 45,374 |
Provision for loan losses | 2,780 | 2,788 | 979 |
Net interest income after provision for loan losses | 88,103 | 89,367 | 44,395 |
Non-interest income | |||
Trust and investment management fee income | 11,985 | 12,270 | 3,829 |
Insurance brokerage service income | 0 | 1,097 | 0 |
Customer service fees | 9,538 | 8,484 | 2,648 |
(Loss) gain on sales of securities, net | (924) | 19 | 4,498 |
Bank-owned life insurance income | 1,821 | 1,539 | 703 |
Other income | 5,515 | 2,573 | 671 |
Total non-interest income | 27,935 | 25,982 | 12,349 |
Non-interest expense | |||
Salaries and employee benefits | 40,964 | 39,589 | 19,775 |
Occupancy and equipment | 12,386 | 11,061 | 4,610 |
Loss on premises and equipment, net | 0 | 94 | 248 |
Outside services | 2,408 | 3,000 | 767 |
Professional services | 1,474 | 1,655 | 1,489 |
Communication | 804 | 1,289 | 586 |
Amortization of intangible assets | 828 | 812 | 92 |
Acquisition, conversion and other expenses | 1,728 | 3,302 | 2,650 |
Other expenses | 14,947 | 11,924 | 5,718 |
Total non-interest expense | 75,539 | 72,726 | 35,935 |
Income before income taxes | 40,499 | 42,623 | 20,809 |
Income tax expense | 7,562 | 16,630 | 5,876 |
Net income | $ 32,937 | $ 25,993 | $ 14,933 |
Earnings per share: | |||
Basic (in dollars per share) | $ 2.13 | $ 1.71 | $ 1.65 |
Diluted (in dollars per share) | $ 2.12 | $ 1.70 | $ 1.63 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 15,487,686 | 15,183,615 | 9,068,624 |
Diluted (in shares) | 15,564,464 | 15,290,410 | 9,142,653 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 32,937 | $ 25,993 | $ 14,933 |
Other comprehensive income (loss), before tax: | |||
Changes in unrealized loss on securities available for sale | (8,563) | 528 | (12,059) |
Changes in unrealized loss on derivative hedges | 654 | (838) | (272) |
Changes in unrealized loss on post-retirement plans | (216) | (328) | 90 |
Income taxes related to other comprehensive income (loss): | |||
Changes in unrealized loss on securities available for sale | 1,978 | (114) | 4,221 |
Changes in unrealized loss on derivative hedges | (168) | 386 | 95 |
Changes in unrealized loss on post-retirement plans | 47 | 138 | (30) |
Total other comprehensive loss | (6,268) | (228) | (7,955) |
Total comprehensive income | $ 26,669 | $ 25,765 | $ 6,978 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common stock amount | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Treasury stock |
Balance at beginning of period at Dec. 31, 2015 | $ 154,152 | $ 13,577 | $ 21,624 | $ 122,260 | $ 3,629 | $ (6,938) |
Comprehensive income: | ||||||
Net income | 14,933 | 14,933 | ||||
Other comprehensive loss | (7,955) | (7,955) | ||||
Total comprehensive income | 6,978 | 14,933 | (7,955) | |||
Cash dividends declared | (6,577) | (6,577) | ||||
Treasury stock purchased | (497) | (497) | ||||
Net issuance to employee stock plans, including related tax effects | (1,406) | (125) | 127 | (1,408) | ||
Recognition of stock based compensation | 1,278 | 1,278 | ||||
Balance at end of period at Dec. 31, 2016 | 156,740 | 13,577 | 23,027 | 130,489 | (4,326) | (6,027) |
Comprehensive income: | ||||||
Net income | 25,993 | 25,993 | ||||
Other comprehensive loss | (228) | (228) | ||||
Total comprehensive income | 25,765 | 25,993 | (228) | |||
Cash dividends declared | (11,505) | (11,505) | ||||
Acquisition of Lake Sunapee Bank Group | 181,919 | 8,328 | 173,591 | |||
Treasury stock purchased | (282) | (282) | ||||
Net issuance to employee stock plans, including related tax effects | (746) | 222 | (968) | |||
Three-for-two stock split | (16) | 10,952 | (10,968) | |||
Recognition of stock based compensation | 1,274 | 1,274 | ||||
Balance at end of period at Dec. 31, 2017 | 354,641 | 32,857 | 186,702 | 144,977 | (4,554) | (5,341) |
Comprehensive income: | ||||||
Net income | 32,937 | 32,937 | ||||
Other comprehensive loss | (6,268) | (6,268) | ||||
Total comprehensive income | 26,669 | 32,937 | (6,268) | |||
Cash dividends declared | (12,184) | (12,184) | ||||
Treasury stock purchased | (324) | (324) | ||||
Net issuance to employee stock plans, including related tax effects | (615) | 395 | (1,010) | |||
Reclassification of the income tax effects of the Tax Cuts and Jobs Act from accumulated other comprehensive income for adoption of ASU 2018-02 | 980 | (980) | ||||
Recognition of stock based compensation | 1,346 | 1,346 | ||||
Balance at end of period at Dec. 31, 2018 | $ 370,579 | $ 32,857 | $ 187,653 | $ 166,526 | $ (11,802) | $ (4,655) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) | 12 Months Ended | ||
Dec. 31, 2018$ / sharesshares | Dec. 31, 2017$ / sharesshares | Dec. 31, 2016$ / sharesshares | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared (in dollars per share) | $ / shares | $ 0.79 | $ 0.75 | $ 0.73 |
Treasury stock purchased (in shares) | 10,899 | 9,603 | 23,072 |
Net shares issued to employee stock plans (in shares) | 101,460 | 91,517 | 123,349 |
Acquisition of Lake Sunapee Bank Group (in shares) | 6,245,780 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 32,937 | $ 25,993 | $ 14,933 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 2,780 | 2,788 | 979 |
Net amortization of securities | 3,945 | 5,214 | 3,415 |
Deferred tax benefit | (443) | 6,886 | 470 |
Change in unamortized net loan costs and premiums | (600) | (933) | (557) |
Premises and equipment depreciation | 3,704 | 3,553 | 1,551 |
Stock-based compensation expense | 1,346 | 1,274 | 1,278 |
Accretion of purchase accounting entries, net | (3,512) | (3,337) | 0 |
Amortization of other intangibles | 828 | 812 | 92 |
Income from cash surrender value of bank-owned life insurance policies | (1,821) | (1,539) | (703) |
Loss (gain) on sales of securities, net | 924 | (19) | (4,498) |
Loss on premises and equipment, net | 0 | 94 | 0 |
Net change in other assets and liabilities | (2,366) | (654) | (169) |
Net cash provided by operating activities | 37,722 | 40,132 | 16,791 |
Cash flows from investing activities: | |||
Proceeds from sales of securities available for sale | 29,107 | 1,599 | 66,583 |
Proceeds from maturities, calls and prepayments of securities available for sale | 95,629 | 121,583 | 109,377 |
Purchases of securities available for sale | (146,763) | (172,116) | (210,824) |
Net change in loans | 116,756 | (126,828) | (10,042) |
Purchase of loans | (121,914) | (18,621) | (128,951) |
Purchase of Federal Home Loan Bank stock | (2,676) | (1,325) | (3,852) |
Proceeds from Sale of Federal Home Loan Bank Stock | 5,122 | 0 | 0 |
Purchase of premises and equipment, net | (4,793) | (3,157) | (4,296) |
Purchase of bank-owned life insurance | (14,000) | 0 | 0 |
Acquisitions, net of cash acquired | 0 | 39,537 | 0 |
Net investment in tax credit limited partnerships | (585) | 0 | 0 |
Proceeds from sale of other real estate owned | 153 | 322 | 119 |
Net cash used in investing activities | (43,964) | (159,006) | (181,886) |
Cash flows from financing activities: | |||
Net increase in deposits | 131,981 | 151,900 | 107,513 |
Net change in short-term advances from the Federal Home Loan Bank | 3,246 | 213,593 | 59,700 |
Net change in long-term advances from the Federal Home Loan Bank | (104,528) | (153,332) | 1,234 |
Net change in short-term other borrowings | (4,495) | (222) | 871 |
Exercise of stock options | 615 | 968 | 1,570 |
Purchase of treasury stock | (324) | (282) | (497) |
Cash dividends paid on common stock | (12,184) | (11,505) | (6,577) |
Net cash provided by financing activities | 14,311 | 201,120 | 163,814 |
Net change in cash and cash equivalents | 8,069 | 82,246 | (1,281) |
Cash and cash equivalents at beginning of year | 90,685 | 8,439 | 9,720 |
Cash and cash equivalents at end of year | 98,754 | 90,685 | 8,439 |
Supplemental cash flow information: | |||
Interest paid | 36,511 | 21,399 | 11,944 |
Income taxes paid, net | 9,891 | 9,084 | 6,286 |
Acquisition of non-cash assets and liabilities: | |||
Assets acquired | 0 | 1,454,076 | 0 |
Liabilities assumed | 0 | 1,406,672 | 0 |
Other non-cash changes: | |||
Real estate owned acquired in settlement of loans | $ 2,380 | $ 32 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation: The consolidated financial statements (the “financial statements”) of Bar Harbor Bankshares and its subsidiaries (the “Company” or “Bar Harbor”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Bar Harbor Bankshares is a Maine Financial Institution Holding Company for the purposes of the laws of the state of Maine, and as such, is subject to the jurisdiction of the Superintendent of the Maine Bureau of Financial Institutions. These financial statements include the accounts of the Company, its wholly-owned subsidiary Bar Harbor Bank & Trust (the "Bank") and the Bank’s consolidated subsidiaries. The results of operations of companies or assets acquired are included only from the dates of acquisition. All material wholly-owned and majority-owned subsidiaries are consolidated unless U.S. GAAP requires otherwise. Consolidation: The accompanying consolidated financial statements have been prepared in accordance with GAAP. The consolidated financial statements include the accounts of Bar Harbor Bankshares and its wholly-owned subsidiary, Bar Harbor Bank & Trust. All significant inter-company balances and transactions have been eliminated in consolidation. Assets held in a fiduciary capacity are not assets of the Company, but assets of customers, and therefore, are not included in the consolidated balance sheets. Reclassifications: Whenever necessary, amounts in the prior years’ financial statements are reclassified to conform to current presentation. The reclassifications had no impact on net income in the Company’s consolidated income statement. Stock Split: On February 21, 2017, the Company's Board of Directors declared a three-for-two stock split payable on March 21, 2017 as a large stock dividend. Shares presented in prior years have been adjusted to conform to the same basis. Use of estimates: In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to change in the near term relate to the determination of the allowance for loan losses, other-than-temporary impairment on securities, income tax estimates, reviews of goodwill for impairment, and accounting for post-retirement plans. Cash and Cash Equivalents: For purposes of reporting cash flows, cash and cash equivalents include cash and due from banks, Federal Funds sold, and other short-term investments with maturities less than 90 days. The Federal Reserve Bank requires the Bank to maintain certain reserve requirements of vault cash and/or deposits. The reserve requirement, included in cash and equivalents, was $15.8 million and $12.7 million at year-end 2018 and 2017 , respectively. Investment Securities: All securities held at December 31, 2018 and 2017 were classified as available-for-sale (“AFS”). Available for sale securities primarily consist of mortgage-backed securities and obligations of state and political subdivisions there of, and are carried at estimated fair value. Changes in estimated fair value of AFS securities, net of applicable income taxes, are reported in accumulated other comprehensive income (loss) as a separate component of shareholders’ equity unless deemed to be other-than-temporarily impaired (“OTTI”) as discussed below. The Company does not have any securities classified as trading or held-to-maturity. Premiums and discounts on securities are amortized and accreted over the term of the securities using the interest method. Gains and losses on the sale of securities are recognized at the trade date using the specific-identification method and are shown separately in the Consolidated Statements of Income. Other-Than-Temporary Impairments on Investment Securities: The Company conducts an OTTI analysis of investment securities on a quarterly basis or more often if a potential loss-triggering event occurs. A write-down of a debt security is recorded when fair value is below amortized cost in circumstances where: (1) the Company has the intent to sell a security; (2) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the Company does not expect to recover the entire amortized cost basis of the security. If the Company intends to sell a security or if it is more likely than not that the Company will be required to sell the security before recovery, an OTTI write-down is recognized in earnings equal to the entire difference between the security’s amortized cost basis and its fair value. If the Company does not intend to sell the security or it is not more likely than not that it will be required to sell the security before recovery, the OTTI write-down is separated into an amount representing credit loss, which is recognized in earnings, and an amount related to all other factors, which is recognized in other comprehensive income. To determine the amount related to credit loss on a debt security, the Company applies a methodology similar to that used for evaluating the impairment of loans. Federal Home Loan Bank Stock: The Bank is a member of the Federal Home Loan Bank of Boston (“FHLB”). The Bank uses the FHLB for most of its wholesale funding needs. As a requirement of membership in the FHLB, the Bank must own a minimum required amount of FHLB stock, calculated periodically based primarily on its level of borrowings from the FHLB. FHLB stock is a non-marketable equity security and therefore is reported at cost, which generally equals par value. Shares held in excess of the minimum required amount are generally redeemable at par value. The Company periodically evaluates its investment in FHLB stock for impairment based on, among other things, the capital adequacy of the FHLB and its overall financial condition. Based on the capital adequacy, liquidity position and sustained profitability of the FHLB, management believes there is no impairment related to the carrying amount of the Bank’s FHLB stock as of December 31, 2018 . Loans Held for Sale: Loans originated with the intent to be sold in the secondary market are accounted for at the lower of cost or market (fair value). Fair value is primarily determined based on quoted prices for similar loans in active markets. Gains and losses on sales of residential mortgage loans (sales proceeds minus carrying value) are recorded in non-interest income. Non-refundable fees and direct loan origination costs related to residential mortgage loans held for sale are recognized in non-interest income or non-interest expense as earned or incurred. Loans: Loans are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, the unamortized balance of any deferred fees or costs on originated loans and the unamortized balance of any premiums or discounts on loans purchased or acquired through mergers. Interest on loans is accrued and credited to income based on the principal amount of loans outstanding. Loan origination and commitment fees and direct loan origination costs are deferred, and the net amount is amortized as an adjustment of the related loans’ yield, using the level-yield method over the estimated lives of the related loans. Acquired Loans: Loans acquired in acquisitions are initially recorded at fair value with no carryover of the related allowance for credit losses. Determining the fair value of the loans involves estimating the amount and timing of principal and interest cash flows initially expected to be collected on the loans and discounting those cash flows at an appropriate market rate of interest. For loans that meet the criteria stipulated in ASC 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality,” the Company recognizes the accretable yield, which is defined as the excess of all cash flows expected at acquisition over the initial fair value of the loan, as interest income on a level-yield basis over the expected remaining life of the loan. The excess of the loan’s contractually required payments over the cash flows expected to be collected is the non-accretable difference. The non-accretable difference is not recognized as an adjustment of yield, a loss accrual, or a valuation allowance. The Company evaluates quarterly whether the timing and cash to be collected are reasonably expected. Subsequent significant increases in cash flows the Company expects to collect will first reduce any previously recognized valuation allowance and then be reflected prospectively as an increase to the level yield. Subsequent decreases in expected cash flows may result in the loan being considered impaired. Interest income is not recognized to the extent that the net investment in the loan would increase to an amount greater than the estimated payoff amount. For loans that do not meet the ASC 310-30 criteria, the Company accretes interest income based on the contractually required cash flows. The Company subjects loans that do not meet the ASC 310-30 criteria to ASC 450, “Contingencies” by collectively evaluating these loans for an allowance for loan loss. Acquired loans that met the criteria for non-accrual of interest prior to the acquisition are considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if the Company can reasonably estimate the timing and amount of the expected cash flows on such loans and if the Company expects to fully collect the new carrying value of the loans. As such, the Company may no longer consider the loan to be non-accrual or nonperforming and may accrue interest on these loans, including the impact of any accretable yield. Non-performing loans: Residential real estate and home equity loans are generally placed on non-accrual status when reaching 90 days past due, or in process of foreclosure, or sooner if considered appropriate by management. Consumer loans are generally placed on non-accrual when reaching 90 days or more past due, or sooner if considered appropriate by management. Secured consumer loans are written down to net realizable value and unsecured consumer loans are charged-off upon reaching 120 days past due. Commercial real estate loans and commercial business loans that are 90 days or more past due are generally placed on non-accrual status, unless secured by sufficient cash or other assets immediately convertible to cash, and the loan is in the process of collection. Commercial real estate and commercial business loans may be placed on non-accrual status prior to the 90 days delinquency date if considered appropriate by management. When a loan has been placed on non-accrual status, previously accrued and uncollected interest is reversed against interest on the loan. The interest on non-accrual loans is accounted for using the cash-basis or cost-recovery method depending on corresponding credit risk, until qualifying for return to accrual status. A loan can be returned to accrual status when collectability of principal is reasonably assured and the loan has performed for a period of time, generally six months. Impaired loans: A loan is considered impaired when, based on current information and events, it is probable that the Company will not be able to collect all amounts due from the borrower in accordance with the contractual terms of the loan, including scheduled interest payments. Factors considered by management in determining impairment include payment status and collateral value. In considering loans for evaluation of impairment, management generally excludes smaller balance, homogeneous loans; residential mortgage loans, home equity loans, and all consumer loans, unless such loans were restructured in a troubled debt restructuring. These loans are collectively evaluated for risk of loss. When a loan has been identified as being impaired, the amount of impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the estimated fair value of the collateral, less any selling costs, if the loan is collateral-dependent. If the measurement of the impaired loan is less than the recorded investment in the loan (including accrued interest, net of deferred loan fees or costs, and unamortized premiums or discounts), impairment is recognized by establishing or adjusting an existing allocation of the allowance for loan losses, or by recording a partial charge-off of the loan to its fair value. Interest payments made on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case, interest income may be accrued or recognized on a cash basis. Loans Modified in a Troubled Debt Restructuring: Loans are considered to have been modified in a troubled debt restructuring when, due to a borrower’s financial difficulties, the Company makes certain concessions to the borrower that it would not otherwise consider. Modifications may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Generally, a non-accrual loan that has been modified in a troubled debt restructuring remains on non-accrual status for a period of at least 6 months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains on non-accrual status. Allowance for Loan Losses: The allowance for loan losses (the “allowance”) is a significant accounting estimate used in the preparation of the Company’s consolidated financial statements. The allowance is available to absorb losses inherent in the current loan portfolio and is maintained at a level that, in management’s judgment, is appropriate for the amount of risk inherent in the loan portfolio, given past and present conditions. The allowance is increased by provisions charged to operating expense and by recoveries on loans previously charged off, and is decreased by loans charged off as uncollectible. The allowance is calculated in accordance with ASC 310 - Receivables and ASC 450 - Contingencies. Under the guidance of ASC 310, specific allowances are established in cases where management has identified significant conditions or circumstances related to individual loans where the probability of a loss may be incurred. Credit loss estimates for loans without specific allowances are determined under the guidance of ASC 450, which includes portfolio segmentation based on similar risk characteristics, determination of estimated historical loss rates, calculation of a time-based loss emergence and confirmation periods, and adjustments for certain qualitative risk factors. Arriving at an appropriate level of allowance for loan losses involves a high degree of judgment. The determination of the adequacy of the allowance and provisioning for estimated losses is evaluated regularly based on review of loans, with particular emphasis on non-performing and other loans that management believes warrant special consideration. While management uses available information to recognize losses on loans, changing economic conditions and the economic prospects of the borrowers may necessitate future additions or reductions to the allowance. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance, which also may necessitate future additions or reductions to the allowance, based on information available to them at the time of their examination. Refer to Note 4 - Allowance for Loan Losses , for further information, including the Company’s loan loss estimation methodology. Reserve for Unfunded Commitments: The unfunded reserve is a component of other liabilities and represents the estimate for probable credit losses inherent in unfunded commitments to extend credit. Unfunded commitments to extend credit include banker’s acceptances, and standby and commercial letters of credit. The process used to determine the unfunded reserve is consistent with the process for determining the allowance, as adjusted for estimated funding probabilities or loan and lease equivalency factors. The level of the unfunded reserve is adjusted by recording on an expense or recovery in other noninterest expense. Reserve for unfunded commitments are classified in other liabilities on the Company’s Consolidated Balance Sheet. Premises and Equipment: Premises and equipment and related improvements are stated at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the lesser of the lease term or estimated useful lives of related assets; generally 25 to 39 years for premises and three to seven years for furniture and equipment. Software costs are stated at cost less accumulated depreciation within other assets on the Consolidated Statements of Condition. Amortization expense is calculated using the straight-line method over the estimated useful lives of the related assets. Goodwill and Identifiable Intangible Assets: In connection with acquisitions, the Company generally records as assets on its consolidated financial statements both goodwill and identifiable intangible assets, such as core deposit intangibles. Goodwill represents the excess of the purchase price over the fair value of net assets acquired in accordance with the purchase method of accounting for business combinations. Goodwill is not amortized but, instead, is subject to impairment tests on at least an annual basis, or more frequently, if an event occurs or circumstances change that reduce the fair value of a reporting unit below its carrying amount. The impairment testing process is conducted by assigning assets and goodwill to each reporting unit. Currently, the Company’s goodwill is evaluated at the entity level as there is only one reporting unit. The Company first assesses certain qualitative factors to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying value. If it is more likely than not that the fair value of the reporting unit is less than the carrying value, then the fair value of each reporting unit is compared to the recorded book value “step one.” If the fair value of the reporting unit exceeds its carrying value, goodwill is not considered impaired and “step two” is not considered necessary. If the carrying value of a reporting unit exceeds its fair value, the impairment test continues (“step two”) by comparing the carrying value of the reporting unit’s goodwill to the implied fair value of goodwill. The implied fair value is computed by adjusting all assets and liabilities of the reporting unit to current fair value with the offset adjustment to goodwill. The adjusted goodwill balance is the implied fair value of the goodwill. An impairment charge is recognized if the carrying fair value of goodwill exceeds the implied fair value of goodwill. Identifiable intangible assets, included in other assets on the consolidated balance sheet, consist of core deposit intangibles amortized over their estimated useful lives on a straight-line method, which approximates the economic benefits to the Company. These assets are reviewed for impairment at least annually, or whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The determination of which intangible assets have finite lives is subjective, as is the determination of the amortization period for such intangible assets. Any negative changes in the estimates used by the Company to determine the carrying value of its goodwill and identifiable intangible assets, or which otherwise adversely affect their value or estimated lives, would adversely affect the Company’s consolidated results of operations. Bank-Owned Life Insurance: Bank-owned life insurance (“BOLI”) represents life insurance on the lives of certain current and retired employees who had 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 in excess of the cash value, are recorded in other non-interest income, and are not subject to income taxes. The cash surrender value is included in other assets on the Company’s consolidated balance sheet. Other Real Estate Owned: Other real estate owned consists of properties acquired through foreclosure proceedings or acceptance of a deed-in-lieu of foreclosure. These properties are recorded at fair value less estimated costs to sell the property. If the recorded investment in the loan exceeds the property’s fair value at the time of acquisition, a charge-off is recorded against the allowance. If the fair value of the property at the time of acquisition exceeds the carrying amount of the loan, the excess is recorded either as a recovery to the allowance if a charge-off had previously been recorded, or as a gain on initial transfer in other non-interest income. Subsequent decreases in the property’s fair value and operating expenses of the property are recognized through charges to other non-interest expense. The fair value of the property acquired is based on third-party appraisals, broker price opinions, recent sales activity, or a combination thereof, subject to management judgment. Capitalized Servicing Right s : Capitalized servicing rights are recognized as assets when mortgage loans are sold and the rights to service those loans are retained. The Company’s capitalized servicing rights are accounted for under the amortization method and are initially recorded at fair value. Fair values are established by using a discounted cash flow model to calculate the present value of estimated future net servicing income. Changes in the fair value of capitalized servicing rights are primarily due to changes in valuation inputs, assumptions, and the collection and realization of expected cash flows. However, these capitalized servicing rights are amortized in proportion to and over the period of estimated net servicing income, which includes prepayment assumptions. An impairment analysis is prepared on a quarterly basis by estimating the fair value of the capitalized servicing rights and comparing that value to the carrying amount. A valuation allowance is established when the carrying amount of these capitalized servicing rights exceeds fair value. Senior and Subordinated Borrowings: The Company's borrowings include retail and wholesale repurchase agreements, FHLB overnight and short-term borrowings, Federal Funds purchased, line of credit advances and subordinated notes. The Company is required to post collateral for certain borrowings, for which it, generally, posts loans and/or investment securities as collateral. Derivative Financial Instruments: The Company recognizes all derivative instruments on the consolidated balance sheet at fair value. On the date the derivative instrument is entered into, the Company designates whether the derivative is part of a hedging relationship (i.e., cash flow or fair value hedge). The Company formally documents relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking hedge transactions. The Company also assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting the changes in cash flows or fair values of hedged items. Changes in the fair value of derivative instruments that are highly effective and qualify as cash flow hedge are recorded in other comprehensive income/(loss). Any ineffective portion is recorded in earnings. For fair value hedges that are highly effective, the gain or loss on the derivative and the loss or gain on the hedged item attributable to the hedged risk are both recognized in earnings, with the differences (if any) representing hedge ineffectiveness. The Company discontinues hedge accounting when it is determined that the derivative is no longer highly effective in offsetting changes of the hedged risk on the hedged item, or management determines that the designation of the derivative as a hedging instrument is no longer appropriate. Off-Balance Sheet Financial Instruments: In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit, unused or unadvanced loan funds and letters of credit. Such financial instruments are recorded in the consolidated financial statements when they are funded or related fees are incurred or received. Stock Based Compensation: The Company has equity award plans that include stock option, restricted stock and performance stock, which are described more fully in Note 14 - Stock Based Compensation Plans o f the Consolidated Financial Statements. The Company expenses the grant date fair value of equity awards granted. The expense is recognized over the vesting periods of the grants. The Company uses its treasury shares for issuing shares upon option exercises, restricted stock and performance stock vesting. Accounting for Retirement Benefit Plans: The Company has non-qualified supplemental executive retirement agreements with certain retired officers. The agreements provide supplemental retirement benefits payable in installments over a period of years upon retirement or death. The Company recognized the net present value of payments associated with the agreements over the service periods of the participating officers. Interest costs continue to be recognized on the benefit obligations. The Company also has a supplemental executive retirement agreement with a certain current executive officer. This agreement provides a stream of future payments in accordance with individually defined vesting schedules upon retirement, termination, or in the event that the participating executive leaves the Company following a change of control event. The Company recognizes the net present value of payments associated with these agreements over the service periods of the participating executive officers. Upon retirement, interest costs will continue to be recognized on the benefit obligation. The Company recognizes the over-funded or under-funded status of post-retirement benefit plans as a liability on the balance sheet in other liabilities and recognizes changes in that funded status through other comprehensive income/(loss). Gains and losses, prior service costs and credits, and any remaining transition amounts that have not yet been recognized through net periodic benefit costs are recognized in accumulated other comprehensive income/(loss), net of tax effects, until they are amortized as a component of net periodic cost. The measurement date, which is the date at which the benefit obligation and plan assets are measured, is the Company's fiscal year end. Income Taxes: The Company uses the asset and liability method of accounting for income taxes. Under this method, 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. If current available information indicates that it is more likely than not that deferred tax assets will not be realized, a valuation allowance is established. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Earnings Per Share: Basic earnings per share excludes dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company, such as the Company’s dilutive stock options. Revenue Recognition: The Company recognizes revenue in accordance with ASC 606, "Revenue from Contracts with Customers." ASC 606 requires the Company to follow a five step process: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the Company satisfies a performance obligation. Revenue recognition under ASC 606 depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the goods or service. See Note 16 - Non-Interest Income of the Company's Consolidated Financial Statements for additional information on revenue recognition. Segment Reporting: An operating segment is defined as a component of a business for which separate financial information is available that is evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and evaluate performance. The Company has determined that its operations are solely in the community banking industry and include traditional community banking services, including lending activities, acceptance of demand, savings and time deposits, business services, investment management, trust and third-party brokerage services. These products and services have similar distribution methods, types of customers and regulatory responsibilities. Accordingly, segment information is not presented in the Consolidated Financial Statements. Recent Accounting Pronouncements The following table provides a brief description of accounting standards that could have a material impact to the Company’s consolidated financial statements upon adoption: Standard Description Required Date of Adoption Effect on financial statements Standards Adopted in 2018 ASU 2014-09, Revenue from Contracts with Customers This ASU supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry topics of the Codification. The core principle of the ASU is an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU may be adopted either retrospectively or on a modified retrospective basis. January 1, 2018 The Company adopted this ASU as of January 1, 2018, upon completion of an analysis to identify all revenue streams within the scope of this accounting guidance. After reviewing the related contracts as prescribed by the five steps within this ASU, one contract resulted in recognition of a $241 thousand liability with a $184 thousand impact to retained earnings net of tax. The remaining changes had no material impact on the consolidated financial statements. See Note 11 for more detail and transitional disclosures. ASU 2015-14, Deferral of the Effective Date ASU 2016-08, Principal versus Agent Considerations ASU 2016-10, Identifying Performance Obligations and Licensing ASU 2016-12, Narrow-Scope Improvements and Practical Expedience ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers ASU 2016-01, Recognition and Measurement of Financial Assets and Liabilities This ASU amends ASC Topic 825, Financial Instruments-Overall, and addresses certain aspects of recognition, measurement, presentation, and discl |
SECURITIES AVAILABLE FOR SALE
SECURITIES AVAILABLE FOR SALE | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES AVAILABLE FOR SALE | SECURITIES AVAILABLE FOR SALE The following is a summary of securities available for sale: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2018 Securities available for sale Debt securities: Mortgage-backed securities: US Government-sponsored enterprises $ 413,492 $ 904 $ 9,444 $ 404,952 US Government agency 111,938 509 1,935 110,512 Private label 20,353 113 84 20,382 Obligations of states and political subdivisions thereof 133,260 1,081 2,076 132,265 Corporate bonds 58,098 264 636 57,726 Total securities available for sale $ 737,141 $ 2,871 $ 14,175 $ 725,837 December 31, 2017 Securities available for sale Debt securities: Obligations of US Government sponsored enterprises $ 6,967 $ 5 $ — $ 6,972 Mortgage-backed securities: US Government-sponsored enterprises 447,081 1,738 5,816 443,003 US Government agency 96,357 413 1,174 95,596 Private label 529 150 5 674 Obligations of states and political subdivisions thereof 138,522 2,407 729 140,200 Corporate bonds 30,527 323 53 30,797 Total securities available for sale $ 719,983 $ 5,036 $ 7,777 $ 717,242 The amortized cost and estimated fair value of available for sale (“AFS”) securities segregated by contractual maturity at December 31, 2018 are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Mortgage-backed securities are shown in total, as their maturities are highly variable. Available for sale (in thousands) Amortized Cost Fair Value Within 1 year $ 425 $ 427 Over 1 year to 5 years 23,312 23,311 Over 5 years to 10 years 62,111 62,055 Over 10 years 105,510 104,198 Total bonds and obligations 191,358 189,991 Mortgage-backed securities 545,783 535,846 Total securities available for sale $ 737,141 $ 725,837 The following table summarizes proceeds from the sale of AFS securities and realized gains and losses: (in thousands) Proceeds from Sale of Securities Available for Sale Realized Gains Realized Losses Net 2018 $ 29,107 $ — $ 924 $ (924 ) 2017 1,599 19 — 19 2016 66,583 4,498 — 4,498 Securities with unrealized losses, segregated by the duration of their continuous unrealized loss positions, are summarized as follows: Less Than Twelve Months Over Twelve Months Total (in thousands) Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Fair December 31, 2018 Securities available for sale Debt securities: Mortgage-backed securities: US Government-sponsored enterprises $ 155 $ 19,367 $ 9,289 $ 297,569 $ 9,444 $ 316,936 US Government agency 16 2,570 1,919 68,266 1,935 70,836 Private label 79 10,393 5 47 84 10,440 Obligations of states and political subdivisions thereof 43 6,784 2,033 47,930 2,076 54,714 Corporate bonds 224 11,759 412 14,460 636 26,219 Total securities available for sale $ 517 $ 50,873 $ 13,658 $ 428,272 $ 14,175 $ 479,145 December 31, 2017 Securities available for sale Debt securities: Mortgage-backed securities: US Government-sponsored enterprises $ 1,895 $ 189,486 $ 3,921 $ 117,156 $ 5,816 $ 306,642 US Government agency 559 45,221 615 30,155 1,174 75,376 Private label — 8 5 130 5 138 Obligations of states and political subdivisions thereof 58 8,298 671 27,727 729 36,025 Corporate bonds 53 8,943 — — 53 8,943 Total securities available for sale $ 2,565 $ 251,956 $ 5,212 $ 175,168 $ 7,777 $ 427,124 A summary of securities pledged as collateral for certain deposits and borrowing arrangements as of the years ended December 31, 2018 and December 31, 2017 is as follows: December 31, 2018 December 31, 2017 (in thousands) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Securities pledged for deposits $ 128,949 $ 126,649 $ 195,921 $ 194,681 Securities pledged for repurchase agreements 55,656 54,189 98,407 98,050 Securities pledged for other borrowings (1) 270,252 265,334 213,379 212,089 Total securities pledged $ 454,857 $ 446,172 $ 507,707 $ 504,820 ______________________________ (1) The Bank pledged securities as collateral for certain borrowing arrangements with the Federal Home Loan Bank of Boston and Federal Reserve Bank of Boston. Visa Class B Common Shares The Company was a member of the Visa USA payment network and was issued Class B shares in connection with the Visa Reorganization and the Visa Inc. initial public offering ("IPO") in March 2008. The Visa Class B shares are transferable only under limited circumstances until they can be converted into shares of the publicly traded class of Visa stock. This conversion cannot happen until the settlement of certain litigation, which is indemnified by Visa members. Since its initial public offering, Visa has funded a litigation reserve based upon a change in the conversion ratio of Visa Class B shares into Visa Class A shares. At its discretion, Visa may continue to increase the conversion rate in connection with any settlements in excess of amounts then in escrow for that purpose and reduce the conversion rate to the extent it adds any funds to the escrow in the future. Based on the existing transfer restriction and uncertainty of the litigation, the Company has recorded its Visa Class B shares on its consolidated balance sheets at a zero value for all reporting periods since 2008. In 2018, the Company sold all of its shares for a pre-tax gain of $2.1 million reflected in other income. As of December 31, 2017 the Company held 15,542 Visa Class B shares, which 11,623 were obtained through the original IPO and 3,919 were acquired through a business combination in early 2017. Securities Impairment As a part of the Company’s ongoing security monitoring process, the Company identifies securities in an unrealized loss position that could potentially be other-than-temporarily impaired. For the twelve months ended December 31, 2018 , 2017 and 2016 . The Company did not record any other-than-temporary impairment (“OTTI”) losses. The following table presents the remaining amount of historical credit losses on debt securities and changes reflected in the statement of income: Twelve Months Ended December 31, (in thousands) 2018 2017 2016 Estimated credit losses as of prior year-end, $ 1,697 $ 1,697 $ 3,180 Reductions for securities paid off during the period — — 1,483 Estimated credit losses at end of the period $ 1,697 $ 1,697 $ 1,697 For securities with unrealized losses, the following information was considered in determining that the impairments were not other-than-temporary: The Company expects to recover its amortized cost basis on all debt securities in its AFS portfolio, as unrealized losses are the result of changes in the interest rate environment and other market factors. Furthermore, the Company does not intend to sell nor does it anticipate that it will be required to sell any of its securities in an unrealized loss position as of December 31, 2018 , prior to this recovery. The Company’s ability and intent to hold these securities until recovery is supported by the Company’s strong capital and liquidity positions as well as its historically low portfolio turnover. The following summarizes, by investment security type, the basis for the conclusion that the debt securities in an unrealized loss position within the Company’s AFS were not other-than-temporarily impaired at December 31, 2018 : US Government-sponsored enterprises 451 out of the total 759 securities in the Company’s portfolios of AFS US Government-sponsored enterprises were in unrealized loss positions. Aggregate unrealized losses represented 2.9% of the amortized cost of securities in unrealized loss positions.The FNMA and FHLMC guarantee the contractual cash flows of all of the Company’s US Government-sponsored enterprises. The securities are investment grade rated and there were no material underlying credit downgrades during the year. All securities are performing. US Government agencies 117 out of the total 194 securities in the Company’s portfolios of AFS US Government agency securities were in unrealized loss positions. Aggregate unrealized losses represented 2.7% of the amortized cost of securities in unrealized loss positions. The Government National Mortgage Association (“GNMA”) guarantees the contractual cash flows of all of the Company’s US government agency securities. The securities are rated investment grade and there were no material underlying credit downgrades during the year. All securities are performing. Private-label 15 of the total 23 securities in the Company’s portfolio of AFS private-label mortgage-backed securities were in unrealized loss positions. Aggregate unrealized losses represented 0.8% of the amortized cost of securities in unrealized loss positions. Based upon the foregoing considerations, and the expectation that the Company will receive all of the future contractual cash flows related to the amortized cost on these securities, the Company does not consider there to be any additional other-than-temporary impairment with respect to these securities. Obligations of states and political subdivisions thereof 118 of the total 257 securities in the Company’s portfolio of AFS municipal bonds and obligations were in unrealized loss positions. Aggregate unrealized losses represented 3.7% of the amortized cost of securities in unrealized loss positions. The Company continually monitors the municipal bond sector of the market carefully and periodically evaluates the appropriate level of exposure to the market. At this time, the Company believes the bonds in this portfolio carry minimal risk of default and the Company is appropriately compensated for that risk. There were no material underlying credit downgrades during the year. All securities are performing. Corporate bonds 10 of the total 21 securities in the Company’s portfolio of AFS corporate bonds were in an unrealized loss position. The aggregate unrealized loss represents 2.4% of the amortized cost of bonds in unrealized loss positions. The Company reviews the financial strength of all of these bonds and has concluded that the amortized cost remains supported by the expected future cash flows of these securities. |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
LOANS | LOANS The Company’s loan portfolio is comprised of the following segments: commercial real estate, commercial and industrial, residential real estate, and consumer loans. Commercial real estate loans include multi-family, commercial construction and land, and other commercial real estate classes. Commercial and industrial loans include loans to commercial businesses, agricultural and other loans to farmers, and tax exempt loans. Residential real estate loans consist of mortgages for 1-to-4 family housing. Consumer loans include home equity loans, auto and other installment loans. The Company’s lending activities are principally conducted in Maine, New Hampshire, and Vermont. Total loans include business activity loans and acquired loans. Acquired loans are those loans previously acquired from a business combination. The following is a summary of total loans as of December 31, 2018 and December 31, 2017 : December 31, 2018 December 31, 2017 (in thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Commercial real estate: Construction and land development $ 23,754 $ 2,890 $ 26,644 $ 28,892 $ 16,781 $ 45,673 Other commercial real estate 555,980 244,075 800,055 505,119 275,954 781,073 Total commercial real estate 579,734 246,965 826,699 534,011 292,735 826,746 Commercial and industrial: Other Commercial 234,757 52,470 287,227 198,051 68,069 266,120 Agricultural 22,317 — 22,317 27,588 — 27,588 Tax exempt 56,588 38,738 95,326 42,365 43,350 85,715 Total commercial and industrial 313,662 91,208 404,870 268,004 111,419 379,423 Total commercial loans 893,396 338,173 1,231,569 802,015 404,154 1,206,169 Residential real estate: Residential mortgages 670,189 474,509 1,144,698 591,411 564,271 1,155,682 Total residential real estate 670,189 474,509 1,144,698 591,411 564,271 1,155,682 Consumer: Home equity 57,898 45,291 103,189 51,376 62,217 113,593 Other consumer 9,414 1,357 10,771 7,828 2,341 10,169 Total consumer 67,312 46,648 113,960 59,204 64,558 123,762 Total loans $ 1,630,897 $ 859,330 $ 2,490,227 $ 1,452,630 $ 1,032,983 $ 2,485,613 Total unamortized net premiums included in the year-end total for business activity loans were the following at December 31, 2018 and December 31, 2017 : (in thousands) 2018 2017 Unamortized net loan origination costs $ 3,064 $ 2,445 Unamortized net premium on purchased loans (127 ) (123 ) Total unamortized net costs and premiums $ 2,937 $ 2,322 For the year ended December 31, 2018 , the Company had pledged loans with a collateral value totaling $96.3 million to the Federal Reserve Bank of Boston for certain borrowing arrangements. The Company also pledged residential first mortgage loans, home equity loans and certain commercial loans with collateral value totaling $986.2 million for FHLB borrowings for the year ended December 31, 2018 . (See Note 8 - Borrowed Funds of the Company's Consolidated Financial Statements.) The carrying amount of the acquired loans at December 31, 2018 totaled $859.3 million . A subset of these loans was determined to have evidence of credit deterioration at the acquisition date, which is accounted for in accordance with ASC 310-30. These purchased credit-impaired loans presently maintain a carrying value of $10.1 million (and a note balance of $14.0 million ). These loans are evaluated for impairment through the periodic reforecasting of expected cash flows. Loans considered not impaired at acquisition date had a carrying amount of $849.2 million . The following table summarizes activity in the accretable yield for the acquired loan portfolio that falls under the purview of ASC 310-30, Accounting for Certain Loans or Debt Securities Acquired in a Transfer: Twelve Months Ended December 31, (in thousands) 2018 2017 Balance at beginning of period $ 3,509 $ — Acquisitions — 3,398 Reclassification from nonaccretable difference for loans with improved cash flows 2,240 1,925 Changes in expected cash flows that do not affect the nonaccretable difference — — Reclassification to TDR (30 ) — Accretion (1,342 ) (1,814 ) Balance at end of period $ 4,377 $ 3,509 The following is a summary of past due loans at December 31, 2018 and December 31, 2017 : Business Activities Loans (in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans Past Due > 90 days and Accruing December 31, 2018 Commercial real estate: Construction and land development $ — $ — $ — $ — $ 23,754 $ 23,754 $ — Other commercial real estate 1,146 — 6,725 7,871 548,109 555,980 — Total commercial real estate 1,146 — 6,725 7,871 571,863 579,734 — Commercial and industrial: Other Commercial 395 60 402 857 233,900 234,757 50 Agricultural 65 6 25 96 22,221 22,317 — Tax exempt — — — — 56,588 56,588 — Total commercial and industrial 460 66 427 953 312,709 313,662 50 Total commercial loans 1,606 66 7,152 8,824 884,572 893,396 50 Residential real estate: Residential mortgages 3,565 641 1,309 5,515 664,674 670,189 — Total residential real estate 3,565 641 1,309 5,515 664,674 670,189 — Consumer: Home equity 72 — — 72 57,826 57,898 — Other consumer 17 — 11 28 9,386 9,414 — Total consumer 89 — 11 100 67,212 67,312 — Total loans $ 5,260 $ 707 $ 8,472 $ 14,439 $ 1,616,458 $ 1,630,897 $ 50 Acquired Loans (in thousands) 30-59 Days 60-89 Days 90 Days or Greater Past Due Total Past Due Acquired Credit Impaired Total Loans Past Due > 90 days and Accruing December 31, 2018 Commercial real estate: Construction and land development $ — $ — $ — $ — $ 164 $ 2,890 $ — Other commercial real estate 631 99 211 941 6,143 244,075 — Total commercial real estate 631 99 211 941 6,307 246,965 — Commercial and industrial: Other commercial 149 26 494 669 679 52,470 — Agricultural — — — — — — — Tax exempt — — — — — 38,738 — Total commercial and industrial 149 26 494 669 679 91,208 — Total commercial loans 780 125 705 1,610 6,986 338,173 — Residential real estate: Residential mortgages 3,419 254 1,792 5,465 3,095 474,509 — Total residential real estate 3,419 254 1,792 5,465 3,095 474,509 — Consumer: Home equity 198 — 66 264 22 45,291 7 Other consumer 17 — — 17 3 1,357 189 Total consumer 215 — 66 281 25 46,648 196 Total loans $ 4,414 $ 379 $ 2,563 $ 7,356 $ 10,106 $ 859,330 $ 196 Business Activities Loans (in thousands) 30-59 Days 60-89 Days 90 Days or Greater Past Due Total Past Due Current Total Loans Past Due > 90 days and Accruing December 31, 2017 Commercial real estate: Construction and land development $ — $ — $ 637 $ 637 $ 28,255 $ 28,892 $ — Other commercial real estate 965 1,659 5,065 7,689 497,430 505,119 119 Total commercial real estate 965 1,659 5,702 8,326 525,685 534,011 119 Commercial and industrial: Other commercial 186 329 702 1,217 196,834 198,051 21 Agricultural 42 159 198 399 27,189 27,588 155 Tax exempt — — — — 42,365 42,365 — Total commercial and industrial 228 488 900 1,616 266,388 268,004 176 Total commercial loans 1,193 2,147 6,602 9,942 792,073 802,015 295 Residential real estate: Residential mortgages 3,096 711 975 4,782 586,629 591,411 — Total residential real estate 3,096 711 975 4,782 586,629 591,411 — Consumer: Home equity 515 — 199 714 50,662 51,376 199 Other consumer 36 24 — 60 7,768 7,828 — Total consumer 551 24 199 774 58,430 59,204 199 Total loans $ 4,840 $ 2,882 $ 7,776 $ 15,498 $ 1,437,132 $ 1,452,630 $ 494 Acquired Loans (in thousands) 30-59 Days 60-89 Days 90 Days or Greater Past Due Total Past Due Acquired Credit Impaired Total Loans Past Due > 90 days and Accruing December 31, 2017 Commercial real estate: Construction and land development $ 124 $ 9 $ — $ 133 $ 258 $ 16,781 $ — Other commercial real estate 278 — 411 689 8,397 275,954 — Total commercial real estate 402 9 411 822 8,655 292,735 — Commercial and industrial: Other commercial 125 14 49 188 632 68,069 — Agricultural — — — — — — — Tax exempt — — — — — 43,350 — Total commercial and industrial 125 14 49 188 632 111,419 — Total commercial loans 527 23 460 1,010 9,287 404,154 — Residential real estate: Residential mortgages 752 388 614 1,754 3,259 564,271 — Total residential real estate 752 388 614 1,754 3,259 564,271 — Consumer: Home equity 125 117 80 322 38 62,217 16 Other consumer 2 — — 2 3 2,341 — Total consumer 127 117 80 324 41 64,558 16 Total loans $ 1,406 $ 528 $ 1,154 $ 3,088 $ 12,587 $ 1,032,983 $ 16 Non-Accrual Loans The following is summary information pertaining to non-accrual loans at December 31, 2018 and December 31, 2017 : December 31, 2018 December 31, 2017 (in thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Commercial real estate: Construction and land development $ 1 $ — $ 1 $ 637 $ — $ 637 Other commercial real estate 7,873 282 8,155 7,146 560 7,706 Total commercial real estate 7,874 282 8,156 7,783 560 8,343 Commercial and industrial: Other commercial 1,423 643 2,066 703 463 1,166 Agricultural 265 — 265 43 — 43 Tax exempt — — — — — — Total commercial and industrial 1,688 643 2,331 746 463 1,209 Total commercial loans 9,562 925 10,487 8,529 1,023 9,552 Residential real estate: Residential mortgages 4,213 2,997 7,210 3,408 858 4,266 Total residential real estate 4,213 2,997 7,210 3,408 858 4,266 Consumer: Home equity 246 201 447 130 217 347 Other consumer 90 1 91 95 58 153 Total consumer 336 202 538 225 275 500 Total loans $ 14,111 $ 4,124 $ 18,235 $ 12,162 $ 2,156 $ 14,318 Loans evaluated for impairment by portfolio segment as of December 31, 2018 and December 31, 2017 were as follows: Business Activities Loans (in thousands) Commercial real estate Commercial and industrial Residential real estate Consumer Total December 31, 2018 Individually evaluated for impairment $ 9,835 $ 1,445 $ 2,562 $ 13 $ 13,855 Collectively evaluated 569,899 312,217 667,627 67,299 1,617,042 Total $ 579,734 $ 313,662 $ 670,189 $ 67,312 $ 1,630,897 Acquired Loans (in thousands) Commercial real estate Commercial and industrial Residential real estate Consumer Total December 31, 2018 Individually evaluated for impairment $ 188 $ 426 $ 744 $ — $ 1,358 Purchased credit impaired 6,307 679 3,095 25 10,106 Collectively evaluated 240,470 90,103 470,670 46,623 847,866 Total $ 246,965 $ 91,208 $ 474,509 $ 46,648 $ 859,330 Business Activities Loans (in thousands) Commercial real estate Commercial and industrial Residential real estate Consumer Total December 31, 2017 Individually evaluated for impairment $ 7,604 $ 626 $ 1,404 $ 13 $ 9,647 Collectively evaluated 526,407 267,378 590,007 59,191 1,442,983 Total $ 534,011 $ 268,004 $ 591,411 $ 59,204 $ 1,452,630 Acquired Loans (in thousands) Commercial real estate Commercial and industrial Residential real estate Consumer Total December 31, 2017 Individually evaluated for impairment $ 241 $ 571 $ 271 $ 63 $ 1,146 Purchased credit impaired 8,655 632 3,259 41 12,587 Collectively evaluated 283,839 110,216 560,741 64,454 1,019,250 Total $ 292,735 $ 111,419 $ 564,271 $ 64,558 $ 1,032,983 The following is a summary of impaired loans at December 31, 2018 and December 31, 2017 : Business Activities Loans December 31, 2018 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance: Construction and land development $ — $ — $ — Other commercial real estate 8,209 8,301 — Other commercial 649 669 — Agricultural — — — Tax exempt — — — Residential real estate 1,671 1,709 — Home equity — — — Other consumer — — — With an allowance recorded: Construction and land development $ 1 $ 1 $ 1 Other commercial real estate 1,625 1,660 421 Other commercial 796 855 78 Agricultural — — — Tax exempt — — — Residential real estate 891 916 111 Home equity 13 13 — Other consumer — — — Total Commercial real estate $ 9,835 $ 9,962 $ 422 Commercial and industrial 1,445 1,524 78 Residential real estate 2,562 2,625 111 Consumer 13 13 — Total impaired loans $ 13,855 $ 14,124 $ 611 Acquired Loans December 31, 2018 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance: Construction and land development $ — $ — $ — Other commercial real estate 188 187 — Other commercial 426 510 — Agricultural — — — Tax exempt — — — Residential real estate 375 524 — Home equity — — — Other consumer — — — With an allowance recorded: Construction and land development $ — Other commercial real estate — — — Other commercial — — — Agricultural — — — Tax exempt — — — Residential real estate 369 379 41 Home equity — — — Other consumer — — — Total Commercial real estate $ 188 $ 187 $ — Commercial and industrial 426 510 — Residential real estate 744 903 41 Consumer — — — Total impaired loans $ 1,358 $ 1,600 $ 41 Business Activities Loans December 31, 2017 (in thousands) Recorded Investment Unpaid Principal Related Allowance With no related allowance: Construction and land development $ — $ — $ — Other commercial real estate 5,896 5,903 — Other commercial 218 217 — Agricultural — — — Tax exempt — — — Residential real estate 1,247 1,260 — Home equity 13 13 — Other consumer — — — With an allowance recorded: Construction and land development $ 637 $ 2,563 $ 59 Other commercial real estate 1,071 1,132 388 Other commercial 408 408 3 Agricultural — — — Tax exempt — — — Residential real estate 157 157 9 Home equity — — — Other consumer — — — Total Commercial real estate $ 7,604 $ 9,598 $ 447 Commercial and industrial 626 625 3 Residential real estate 1,404 1,417 9 Consumer 13 13 — Total impaired loans $ 9,647 $ 11,653 $ 459 Acquired Loans December 31, 2017 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance: Construction and land development $ — $ — $ — Other commercial real estate 241 352 — Other commercial 571 584 — Agricultural — — — Tax exempt — — — Residential real estate 271 278 — Home equity 63 156 — Other consumer — — — With an allowance recorded: Construction and land development $ — Other commercial real estate — — — Other commercial — — Agricultural — — — Tax exempt — — — Residential real estate — — — Home equity — — — Other consumer — — — Total Commercial real estate $ 241 $ 352 $ — Commercial and industrial 571 584 — Residential real estate 271 278 — Consumer 63 156 — Total impaired loans $ 1,146 $ 1,370 $ — The following is a summary of the average recorded investment and interest income recognized on impaired loans as of December 31, 2018 and December 31, 2017 : Business Activities Loan Twelve Months Ended December 31, 2018 Twelve Months Ended December 31, 2017 (in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest With no related allowance: Construction and land development $ — $ — $ — $ — Other commercial real estate 6,878 77 2,541 66 Other commercial 634 9 382 6 Agricultural — — 113 1 Tax exempt — — — — Residential real estate 1,693 39 2,174 39 Home equity — — 27 — Other consumer — — 53 3 With an allowance recorded: Construction and land development $ 1 $ — $ 637 $ — Other commercial real estate 1,140 — 735 — Other commercial 735 — 105 1 Agricultural — — — — Tax exempt — — — — Residential real estate 826 9 157 5 Home equity 13 1 — — Other consumer — — — — Total Commercial real estate $ 8,019 $ 77 $ 3,913 $ 66 Commercial and industrial 1,369 9 600 8 Residential real estate 2,519 48 2,331 44 Consumer 13 1 80 3 Total impaired loans $ 11,920 $ 135 $ 6,924 $ 121 Acquired Loans Twelve Months Ended December 31, 2018 Twelve Months Ended December 31, 2017 (in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest With no related allowance: Construction and land development $ — $ — $ — $ — Other commercial real estate 112 1 136 — Other commercial 441 1 264 1 Agricultural — — — — Tax exempt — — — — Residential real estate 442 — 140 1 Home equity — — 58 — Other consumer — — — — With an allowance recorded: Construction and land development $ — $ — $ — $ — Other commercial real estate — — — — Other commercial — — — — Agricultural — — — — Tax exempt — — — — Residential real estate 218 3 — — Home equity — — — — Other consumer — — — — Total Commercial real estate $ 112 $ 1 $ 136 $ — Commercial and industrial 441 1 264 1 Residential real estate 660 3 140 1 Consumer — — 58 — Total impaired loans $ 1,213 $ 5 $ 598 $ 2 Troubled Debt Restructuring Loans The Company’s loan portfolio also includes certain loans that have been modified in a Troubled Debt Restructuring ("TDR"), where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. Certain TDRs are classified as non-performing at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months . TDRs are evaluated individually for impairment and may result in a specific allowance amount allocated to an individual loan. The following tables include the recorded investment and number of modifications identified during the twelve months ended December 31, 2018 , 2017 and 2016, respectively. The table includes the recorded investment in the loans prior to a modification and also the recorded investment in the loans after the loans were restructured. Modifications may include adjustments to interest rates, payment amounts, extensions of maturity, court ordered concessions or other actions intended to minimize economic loss and avoid foreclosure or repossession of collateral. Twelve Months Ended December 31, 2018 (in thousands, except modifications) Number of Modifications Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Specific Reserve Troubled Debt Restructurings Construction and land development 1 $ 1 $ 1 $ 1 Other commercial real estate 9 1,896 1,564 153 Other commercial 7 556 486 55 Agricultural 1 167 — — Tax exempt — — — — Residential mortgages 19 3,348 2,752 145 Home equity 1 100 100 — Other consumer 3 13 11 — Total 41 $ 6,081 $ 4,914 $ 354 Twelve Months Ended December 31, 2017 (in thousands, except modifications) Number of Modifications Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Specific Reserve Troubled Debt Restructurings Construction and land development — $ — $ — $ — Other commercial real estate 6 388 222 — Other commercial 6 563 545 — Agricultural 1 19 18 — Tax exempt — — — — Residential mortgages 3 692 670 — Home equity 1 13 13 — Other consumer 1 38 36 — Total 18 $ 1,713 $ 1,504 $ — Twelve Months Ended December 31, 2016 (in thousands, except modifications) Number of Modifications Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Specific Reserve Troubled Debt Restructurings Construction and land development — $ — $ — $ — Other commercial real estate 6 1,459 1,354 — Other commercial 2 38 48 — Agricultural 3 29 44 — Tax exempt — — — — Residential mortgages — — — — Home equity — — — — Other consumer 2 11 11 9 Total 13 $ 1,537 $ 1,457 $ 9 The following table summarizes the types of loan concessions made for the periods presented: 2018 2017 2016 (in thousands, except modifications) Number of Modifications Post-Modification Outstanding Recorded Investment Number of Modifications Post-Modification Outstanding Recorded Investment Number of Modifications Post-Modification Outstanding Recorded Investment Interest rate and maturity concession 1 $ 16 6 $ 725 6 $ 440 Amortization and maturity concession 1 286 6 490 — — Amortization concession — — 1 94 4 981 Amortization, interest rate and maturity concession — — 1 36 — — Amortization and interest rate concession — — — — 1 9 Forbearance 3 271 — — — — Forbearance and interest only payments 6 121 — — — — Forbearance and interest rate concession 1 49 — — — — Forbearance and maturity concession 20 2,030 — — — — Maturity concession 2 440 — — — — Restructure without concession 5 1,419 — — — — Court ordered — — — — 1 1 Other 2 282 4 159 1 26 Total 41 4,914 18 1,504 13 1,457 For the twelve months ended December 31, 2018 , 2017 and 2016 , there were no loans that were restructured that had subsequently defaulted during the period. The evaluation of certain loans individually for specific impairment includes loans that were previously classified as TDRs or continue to be classified as TDRs. Residential Mortgage Foreclosure and Other Real Estate Owned As of December 31, 2018 , the Company maintained bank-owned residential real estate property with a fair value of $2.4 million . Additionally, residential mortgage loans collateralized by real estate property that were in the process of foreclosure as of December 31, 2018 and December 31, 2017 totaled $1.5 million and $843 thousand , respectively. As of December 31, 2017 , bank-owned non-residential real estate property totaling $90 thousand . Loan Concentrations Loan concentrations in specific industries may occasionally emerge as a result of economic conditions, changes in local demands, natural loan growth and runoff. At December 31, 2018 the largest industry concentration outside of commercial real estate was the hospitality industry which represents 9.0% or $223.0 million of the Company's total loan portfolio, compared with 9.4% or $234.6 million at December 31, 2017 . There were no concentrations of loans related to any single industry in excess of 10% of total loans for 2018 or 2017 . Loans to Related Parties In the ordinary course of business, the Bank has made loans at prevailing rates and terms to directors, officers and other related parties. In management’s opinion, such loans do not present more than the normal risk of collectability or incorporate other unfavorable features, and were made under terms that are consistent with the Bank’s lending policies. Loan to related parties at December 31, 2018 and December 31, 2017 are summarized below. (in thousands) 2018 2017 Beginning balance $ 10,487 $ 10,620 Changes in composition (1) — 249 New Loans — 1,124 Less: repayments (2,092 ) (1,506 ) Ending balance $ 8,395 $ 10,487 ______________________________________ (1) Adjustments to reflect changes in status of directors and officers for each year presented. Mortgage Banking The Bank sells loans in the secondary market and retains the ability to service many of these loans. The Bank earns fees for the servicing provided. At year end 2018 and 2017 , the Company was servicing loans for participants totaling $496.5 million and $497.9 million , respectively. Loans serviced for others are not included in the accompanying consolidated balance sheets. The risks inherent in servicing assets relate primarily to changes in prepayments that result from shifts in interest rates. Contractually-specified servicing fees were $1.3 million , $1.2 million , and $28 thousand for the years ended 2018 , 2017 , and 2016 , respectively, and is included as a component of other income within non-interest income. Servicing rights activity during 2018 and 2017 was as follows: At or for the Twelve Months Ended December 31, (in thousands) 2018 2017 Balance at beginning of year $ 3,232 $ 5 Acquired — 3,417 Additions 99 134 Amortization (245 ) (324 ) Balance at end of year $ 3,086 $ 3,232 Total residential loans included held for sale loans of $168 thousand and $13.4 million at December 31, 2018 and 2017 , respectively. The net gains on sales of loans at December 31, 2018 and 2017 were $121 thousand and $222 thousand , respectively, and included as a component of other income within non-interest income. |
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
ALLOWANCE FOR LOAN LOSSES | ALLOWANCE FOR LOAN LOSSES The allowance for loan losses is maintained at a level considered adequate to provide for an estimate of probable credit losses inherent in the loan portfolio. The allowance is increased by the provision charged to operating expense and reduced by net charge-offs. Loans are charged against the allowance for loan losses when the Company believes collectability has declined to a point where there is a distinct possibility of some loss of principal and interest. While the Company uses the best information available to make the evaluation, future adjustments may be necessary if there are significant changes in conditions. The allowance is comprised of four distinct reserve components: (1) specific reserves related to loans individually evaluated; (2) quantitative reserves related to loans collectively evaluated; (3) qualitative reserves related to loans collectively evaluated; and (4) a temporal estimate is made for incurred loss emergence period for each loan category within the collectively evaluated pools. A summary of the methodology employed on a quarterly basis with respect to each of these components in order to evaluate the overall adequacy of the Company's allowance for loan losses is as follows: Specific Reserve for Loans Individually Evaluated First, the Company identifies loan relationships having aggregate balances in excess of $150 thousand with potential credit weaknesses. Such loan relationships are identified primarily through the Company's analysis of internal loan evaluations, past due loan reports, TDRs and loans adversely classified. Each loan so identified is then individually evaluated for impairment. Loans are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the original loan agreement. Substantially all impaired loans have historically been collateral dependent, meaning repayment of the loan is expected or is considered to be provided solely from the sale of the loan's underlying collateral. For such loans, the Company measures impairment based on the fair value of the loan's collateral, which is generally determined utilizing current appraisals. A specific reserve is established in an amount equal to the excess, if any, of the recorded investment in each impaired loan over the fair value of its underlying collateral, less estimated costs to sell. The Company's policy is to re-evaluate the fair value of collateral dependent loans at least every twelve months unless there is a known deterioration in the collateral's value, in which case a new appraisal is obtained. Purchase credit impaired (“PCI”) loans are collectively evaluated, but are not included in the general reserve as described below. The evaluation of the PCI loans requires continued quarterly assessment of key assumptions and estimates similar to the initial fair value estimate, including changes in the severity of loss, timing and speed of payments, collateral value changes, expected cash flows and other relevant factors. The quarterly assessment is compared to the initial fair value estimate and a determination is made if an adjustment to the allowance for loan loss is deemed necessary. Quantitative Reserve for Loans Collectively Evaluated Second, the Company stratifies the loan portfolio into two general business loan pools: substandard (7 risk rated) and pass-rated (0 to 6 rated) by loan type. Substandard rated loans are subject to higher credit loss rates in the allowance for loan loss calculation. The Company utilizes historical loss rates for commercial real estate and commercial and industrial loans assessed by internal risk rating. Historical loss rates on residential real estate and consumer loans are not risk graded. Residential real estate and consumer loans are considered as part of the pass-rated portfolio unless removed due to specific reserve evaluation based on past due status and/or other indications of credit deterioration. Quantitative reserves relative to each loan pool are established as follows: for all loan segments an allocation equaling 100% of the respective pool's average 3-year historical net loan charge-off rate (determined based upon the most recent 12 quarters) is applied to the aggregate recorded investment in the pool of loans. Purchased performing loans are collectively evaluated as their own separate category within each loan pool. Qualitative Reserve for Loans Collectively Evaluated Third, the Company considers the necessity to adjust the average historical net loan charge-off rates relative to each of the above two loan pools for potential risks factors that could result in actual losses deviating from prior loss experience. Such qualitative risk factors considered are: (1) lending policies and procedures, (2) business conditions, (3) volume and nature of the loan portfolio, (4) experience, ability and depth of lending management, (5) problem loan trends, (6) quality of the Company’s loan review system, (7) concentrations in the loan portfolio, (8) competition, legal, and regulatory environment and (9) collateral coverage and loan-to-value. Loss Emergence Period for Loans Collectively Evaluated Fourth, the general allowance related to loans collectively evaluated includes an estimate of incurred losses over an estimated loss emergence period ("LEP"). The LEP is generated utilizing a charge-off look-back analysis, which evaluates the time from the first indication of elevated risk of repayment (or other early event indicating a problem) to eventual charge-off to support the LEP considered in the allowance calculation. This reserving methodology establishes the approximate number of months of LEP that represents incurred losses for each loan portfolio within each portfolio segment in addition to the qualitative reserves. Activity in the allowance for loan losses for the twelve months ended December 31, 2018 , 2017 and 2016 was as follows: Business Activities Loans At or for the Twelve Months Ended December 31, 2018 (in thousands) Commercial real estate Commercial and industrial Residential real estate Consumer Total Balance at beginning of period $ 6,037 $ 2,373 $ 3,357 $ 386 $ 12,153 Charged-off loans (417 ) (111 ) (225 ) (629 ) (1,382 ) Recoveries on charged-off loans 275 76 166 18 535 Provision/(releases) for loan losses 916 42 684 633 2,275 Balance at end of period $ 6,811 $ 2,380 $ 3,982 $ 408 $ 13,581 Individually evaluated for impairment 422 78 111 — 611 Collectively evaluated 6,389 2,302 3,871 408 12,970 Total $ 6,811 $ 2,380 $ 3,982 $ 408 $ 13,581 Acquired Loans At or for the Twelve Months Ended December 31, 2018 (in thousands) Commercial real estate Commercial and industrial Residential real estate Consumer Total Balance at beginning of period $ 97 $ 16 $ 59 $ — $ 172 Charged-off loans (136 ) (166 ) (158 ) (65 ) (525 ) Recoveries on charged-off loans 43 7 — 83 133 Provision/(releases) for loan losses 169 178 176 (18 ) 505 Balance at end of period $ 173 $ 35 $ 77 $ — $ 285 Individually evaluated for impairment — — 41 — 41 Collectively evaluated 173 35 36 — 244 Total $ 173 $ 35 $ 77 $ — $ 285 Business Activities Loans At or for the Twelve Months Ended December 31, 2017 (in thousands) Commercial real estate Commercial and industrial Residential real estate Consumer Total Balance at beginning of period $ 5,145 $ 1,952 $ 2,721 $ 601 $ 10,419 Charged-off loans (124 ) (189 ) (226 ) (162 ) (701 ) Recoveries on charged-off loans 49 11 65 18 143 Provision/(releases) for loan losses 967 599 797 (71 ) 2,292 Balance at end of period $ 6,037 $ 2,373 $ 3,357 $ 386 $ 12,153 Individually evaluated for impairment 447 3 9 — 459 Collectively evaluated 5,590 2,370 3,348 386 11,694 Total $ 6,037 $ 2,373 $ 3,357 $ 386 $ 12,153 Acquired Loans At or for the Twelve Months Ended December 31, 2017 (in thousands) Commercial real estate Commercial and industrial Residential real estate Consumer Total Balance at beginning of period $ — $ — $ — $ — $ — Charged-off loans (151 ) (18 ) (29 ) (127 ) (325 ) Recoveries on charged-off loans 1 — — — 1 Provision/(releases) for loan losses 247 34 88 127 496 Balance at end of period $ 97 $ 16 $ 59 $ — $ 172 Individually evaluated for impairment — — — — — Collectively evaluated 97 16 59 — 172 Total $ 97 $ 16 $ 59 $ — $ 172 Business Activities Loans At or for the Twelve Months Ended December 31, 2016 (in thousands) Commercial real estate Commercial and industrial Residential real estate Consumer Total Balance at beginning of period $ 4,430 $ 1,590 $ 2,747 $ 672 $ 9,439 Charged-off loans (133 ) (90 ) (141 ) (47 ) (411 ) Recoveries on charged-off loans 40 289 44 39 412 Provision/(releases) for loan losses 808 163 71 (63 ) 979 Balance at end of period $ 5,145 $ 1,952 $ 2,721 $ 601 $ 10,419 Individually evaluated for impairment 193 173 49 9 424 Collectively evaluated 4,952 1,779 2,672 592 9,995 Total $ 5,145 $ 1,952 $ 2,721 $ 601 $ 10,419 There were no loans meeting the definition of acquired for the twelve month period ended December 31, 2016 . Credit Quality Information Loan Origination/Risk Management: The Company has certain lending policies and procedures in place designed to maximize loan income within an acceptable level of risk. The Company’s Board of Directors reviews and approves these policies and procedures on a regular basis. A reporting system supplements the review process by providing management and the Company's Board of Directors with frequent reports related to loan production, loan quality, concentrations of credit, loan delinquencies, non-performing loans and potential problem loans. The Company seeks to diversify the loan portfolio as a means of managing risk associated with fluctuations in economic conditions. Credit Quality Indicators/Classified Loans: In monitoring the credit quality of the portfolio, management applies a credit quality indicator and uses an internal risk rating system to categorize commercial loans. These credit quality indicators range from one through nine, with a higher number correlating to increasing risk of loss. These ratings are used as inputs to the calculation of the allowance for loan losses. Consistent with regulatory guidelines, the Company provides for the classification of loans which are considered to be of lesser quality as special mention, substandard, doubtful, or loss (i.e. risk rated 6, 7, 8 and 9, respectively). The following are the definitions of the Company’s credit quality indicators: Pass: Loans the Company considers in the commercial portfolio segments that are not adversely rated, are contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the loan agreement. Management believes there is a low risk of loss related to these loans considered pass rated. Special Mention: Loans the Company considers having some potential weaknesses, but are deemed to not carry levels of risk inherent in one of the subsequent categories, are designated as special mention. A special mention loan has 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 institution’s credit position at some future date. This might include loans which may require a higher level of supervision or internal reporting because of: (i) declining industry trends; (ii) increasing reliance on secondary sources of repayment; (iii) the poor condition of or lack of control over collateral; or (iv) failure to obtain proper documentation or any other deviations from prudent lending practices. Economic or market conditions which may, in the future, affect the obligor, may warrant special mention of the asset. Loans for which an adverse trend in the borrower's operations or an imbalanced position in the balance sheet which has not reached a point where the liquidation is jeopardized may be included in this classification. Special mention loans are not adversely classified and do not expose the Company to sufficient risks to warrant classification. Substandard: Loans the Company considers as substandard are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Substandard loans have a well-defined weakness that jeopardizes liquidation of the debt. Substandard loans include those loans where there is the distinct possibility of some loss of principal, if the deficiencies are not corrected. Doubtful: Loans the Company considers as doubtful have all of the weaknesses inherent in those loans that are classified as substandard. These loans have the added characteristic of a well-defined weakness which is inadequately protected by the current sound worth and paying capacity of borrower or of the collateral pledged, if any, and calls into question the collectability of the full balance of the loan. The possibility of loss is high but because of certain important and reasonably specific pending factors which may work to the advantage and strengthening of the loan, its classification as loss is deferred until its more exact status is determined. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral and refinancing plans. The entire amount of the loan might not be classified as doubtful when collection of a specific portion appears highly probable. Loans are generally not classified doubtful for an extended period of time (i.e., over a year). Loss: Loans the Company considers as losses are those considered uncollectible and of such little value that their continuance as an asset is not warranted and the uncollectible amounts are charged-off. This classification does not mean the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this worthless asset even though partial recovery may be affected in the future. Losses are taken in the period in which they are determined to be uncollectible. The following tables present the Company’s commercial loans by risk rating at December 31, 2018 and December 31, 2017 : Business Activities Loans Commercial Real Estate Credit Risk Profile by Creditworthiness Category Construction and land development Commercial real estate other Total commercial real estate (in thousands) December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Grade: Pass $ 23,680 $ 28,180 $ 532,386 $ 483,711 $ 556,066 $ 511,891 Special mention 73 73 8,319 5,706 8,392 5,779 Substandard — 639 13,914 15,702 13,914 16,341 Doubtful 1 — 1,361 — 1,362 — Total $ 23,754 $ 28,892 $ 555,980 $ 505,119 $ 579,734 $ 534,011 Commercial and Industrial Credit Risk Profile by Creditworthiness Category Commercial other Agricultural and other loans to farmers Tax exempt loans Total commercial and industrial (in thousands) December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Grade: Pass $ 226,353 $ 194,147 $ 21,680 $ 27,046 $ 56,588 $ 42,208 $ 304,621 $ 263,401 Special mention 6,730 1,933 215 63 — 157 6,945 2,153 Substandard 924 1,971 422 479 — — 1,346 2,450 Doubtful 750 — — — — — 750 — Total $ 234,757 $ 198,051 $ 22,317 $ 27,588 $ 56,588 $ 42,365 $ 313,662 $ 268,004 Residential Real Estate and Consumer Loans Credit Risk Profile Based on Payment Activity Residential real estate Home equity Other consumer Total residential real estate and consumer (in thousands) Dec 31, 2018 Dec 31, 2017 Dec 31, 2018 Dec 31, 2017 Dec 31, 2018 Dec 31, 2017 Dec 31, 2018 Dec 31, 2017 Performing $ 665,976 $ 588,003 $ 57,652 $ 51,246 $ 9,324 $ 7,733 $ 732,952 $ 646,982 Non-performing 4,213 3,408 246 130 90 95 4,549 3,633 Total $ 670,189 $ 591,411 $ 57,898 $ 51,376 $ 9,414 $ 7,828 $ 737,501 $ 650,615 Acquired Loans Commercial Real Estate Credit Risk Profile by Creditworthiness Category Commercial construction and land development Commercial real estate other Total commercial real estate (in thousands) December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Grade: Pass $ 2,626 $ 16,523 $ 236,393 $ 266,477 $ 239,019 $ 283,000 Special mention — 235 1,574 2,440 1,574 2,675 Substandard 264 23 6,009 7,037 6,273 7,060 Doubtful — — 99 — 99 — Total $ 2,890 $ 16,781 $ 244,075 $ 275,954 $ 246,965 $ 292,735 Commercial and Industrial Credit Risk Profile by Creditworthiness Category Commercial other Agricultural and other loans to farmers Tax exempt loans Total commercial and industrial (in thousands) December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Grade: Pass $ 46,120 $ 60,300 $ — $ — $ 38,738 $ 43,350 $ 84,858 $ 103,650 Special mention 4,825 5,753 — — — — 4,825 5,753 Substandard 1,222 2,016 — — — — 1,222 2,016 Doubtful 303 — — — — — 303 — Total $ 52,470 $ 68,069 $ — $ — $ 38,738 $ 43,350 $ 91,208 $ 111,419 Residential Real Estate and Consumer Loans Credit Risk Profile Based on Payment Activity Residential real estate Home equity Other consumer Total residential real estate and consumer (in thousands) Dec 31, 2018 Dec 31, 2017 Dec 31, 2018 Dec 31, 2017 Dec 31, 2018 Dec 31, 2017 Dec 31, 2018 Dec 31, 2017 Performing $ 470,497 $ 562,516 $ 45,090 $ 62,000 $ 1,356 $ 2,283 $ 516,943 $ 626,799 Non-performing 4,012 1,755 201 217 1 58 4,214 2,030 Total $ 474,509 $ 564,271 $ 45,291 $ 62,217 $ 1,357 $ 2,341 $ 521,157 $ 628,829 The following table summarizes information about total classified and criticized loans loans as of December 31, 2018 and December 31, 2017 . December 31, 2018 December 31, 2017 (in thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Non-accrual $ 14,111 $ 4,124 $ 18,235 $ 12,140 $ 2,156 $ 14,296 Substandard accruing 7,810 7,987 15,797 10,284 7,833 18,117 Doubtful accruing — — — — — — Total classified 21,921 12,111 34,032 22,424 9,989 32,413 Special mention 15,337 6,399 21,736 7,932 8,428 16,360 Total Criticized $ 37,258 $ 18,510 $ 55,768 $ 30,356 $ 18,417 $ 48,773 |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT Year-end premises and equipment at December 31, 2018 and December 31, 2017 are summarized as follows: (in thousands, except years) 2018 2017 Estimated Useful Life Land $ 4,837 $ 4,849 N/A Buildings and improvements 50,933 48,952 5 -39 years Furniture and equipment 9,098 6,972 3 - 7 years Premises and equipment, gross 64,868 60,773 Accumulated depreciation (16,064 ) (13,065 ) Premises and equipment, net $ 48,804 $ 47,708 Depreciation expense for the years ended December 31, 2018 , 2017 and 2016 amounted to $ 3.7 million, $ 3.5 million and $ 1.5 million, respectively. |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLES | GOODWILL AND OTHER INTANGIBLES The activity impacting goodwill in 2018 and 2017 is as follows: (in thousands) 2018 2017 Balance at beginning of year $ 100,085 $ 4,935 Acquisition — 95,150 Balance at end of year $ 100,085 $ 100,085 In 2018 , the Company completed its annual goodwill impairment testing using data as of September 30, 2018 . The analysis was performed at the consolidated Bank level of the Company, which is considered the smallest reporting unit carrying goodwill. The step one analysis under the guidance of ASC 350 was passed, and therefore step two of the goodwill impairment test was not performed and no goodwill impairment was recognized for the year ended December 31, 2018 . No impairment was recorded in 2017 and 2016 . The components of other intangible assets in 2018 and 2017 are as follows: 2018 (in thousands) Gross Intangible Assets Accumulated Amortization Net Intangible Assets Core deposit intangible (non-maturity deposits) $ 8,586 $ (1,878 ) $ 6,708 Customer list and other intangibles 919 (168 ) 751 Total $ 9,505 $ (2,046 ) $ 7,459 2017 (in thousands) Gross Intangible Assets Accumulated Amortization Net Intangible Assets Core deposit intangible (non-maturity deposits) $ 8,585 $ (1,136 ) $ 7,449 Customer list and other intangibles 1,016 (82 ) 934 Total $ 9,601 $ (1,218 ) $ 8,383 Other intangible assets are amortized on a straight-line basis over their estimated lives, which range from eight and a half years to twelve years. Amortization expenses related to intangibles totaled $ 828 thousand in 2018 , $ 812 thousand in 2017 and $ 92 thousand in 2016 . The estimated aggregate future amortization expense for other intangible assets remaining at year end 2018 is as follows: (in thousands) Other Intangible Assets 2019 827 2020 827 2021 742 2022 734 2023 734 and thereafter 3,595 Total other intangible assets 7,459 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS A summary of time deposits at December 31, 2018 and December 31, 2017 were as follows: (in thousands) December 31, 2018 December 31, 2017 Time less than $100,000 $ 622,478 $ 579,856 Time $100,000 through $250,000 193,535 167,145 Time $250,000 or more 116,780 119,345 Total time deposits $ 932,793 $ 866,346 At December 31, 2018 and December 31, 2017 , the scheduled maturities by year for time deposits were as follows: (in thousands) December 31, 2018 December 31, 2017 Within 1 year $ 505,313 $ 406,295 Over 1 year to 2 years 258,176 305,895 Over 2 years to 3 years 123,337 115,878 Over 3 years to 4 years 14,494 24,459 Over 4 years to 5 years 31,353 13,685 Over 5 years 120 134 Total $ 932,793 $ 866,346 Included in time deposits are brokered deposits of $466.9 million and $378.7 million at December 31, 2018 and December 31, 2017 , respectively. Also included in time deposits are reciprocal deposits of $52.4 million and $49.7 million at December 31, 2018 and December 31, 2017 , respectively. |
BORROWED FUNDS
BORROWED FUNDS | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
BORROWED FUNDS | BORROWED FUNDS Borrowed funds at December 31, 2018 and December 31, 2017 are summarized, as follows: December 31, 2018 December 31, 2017 (in thousands, except ratios) Amount Weighted Average Rate Amount Weighted Average Rate Short-term borrowings Advances from the FHLB $ 611,683 2.47 % $ 608,792 1.49 % Other borrowings 36,211 1.09 40,706 0.59 Total short-term borrowings 647,894 2.39 649,498 1.43 Long-term borrowings Advances from the FHLB 32,929 1.86 137,190 1.72 Subordinated borrowings 37,973 5.58 38,033 4.88 Junior subordinated borrowings 5,000 5.96 5,000 4.89 Total long-term borrowings 75,902 3.99 180,223 2.47 Total $ 723,796 2.56 % $ 829,721 1.66 % Short-term debt includes Federal Home Loan Bank of Boston (“FHLB”) advances with an original maturity of less than one year. The Company also maintains a $1.0 million secured line of credit with the FHLB that bears a daily adjustable rate calculated by the FHLB. There was no outstanding balance on the FHLB line of credit for the years ended December 31, 2018 and 2017 . The Bank also has capacity to borrow funds on a secured basis utilizing the Borrower in Custody program and the Discount Window at the Federal Reserve Bank of Boston (the “FRB”). At December 31, 2018 , the Bank’s available secured line of credit at the FRB was $118.6 million. The Bank has pledged certain loans and securities to the FRB to support this arrangement. There were no borrowings with the FRB for the periods ended December 31, 2018 and December 31, 2017 . Long-term FHLB advances consist of advances with a maturity of more than one year. The advances outstanding at December 31, 2018 include no callable advances and $330 thousand of amortizing advances. The advances outstanding at December 31, 2017 include callable advances totaling $27.0 million , and $683.0 thousand of amortizing advances. All FHLB borrowings, including the line of credit, are secured by a blanket security agreement on certain qualified collateral, principally all residential first mortgage loans and certain securities. A summary of maturities of FHLB advances as of December 31, 2018 is as follows: December 31, 2018 (in thousands, except rates) Amount Weighted Fixed rate advances maturing: 2019 $ 611,683 2.47 % 2020 29,956 1.87 2021 1,648 2.34 2022 — — 2023 1,000 — 2024 and thereafter 325 3.97 Total FHLB advances $ 644,612 2.44 % In April 2008, the Bank issued fifteen year junior subordinated notes in the amount of $5.0 million due in 2023. These debt securities qualify as Tier 2 capital for the Company and the Bank. The subordinated debt securities are callable by the Bank after five years without penalty. The interest rate is three-month LIBOR plus 3.45% . At December 31, 2018 and December 31, 2017 the interest rate was 6.24% and 5.04% , respectively. The Company has $17.0 million of subordinated debt issued on October 29, 2014, in connection with the execution of a Subordinated Note Purchase Agreement with an aggregate of $17.0 million of subordinated notes (the “Notes”) to the accredited investors. The Notes have a maturity date of November 1, 2024, and will bear interest at a fixed rate of 6.75% per annum. The Company may, at its option, beginning with the interest payment date of November 1, 2019, and on any interest payment date thereafter, redeem the Notes, in whole or in part, at par plus accrued and unpaid interest to the date of redemption. Any partial redemption will be made pro rata among all of the noteholders. The Notes are not subject to repayment at the option of the noteholders. The Notes are unsecured, subordinated obligations of the Company and rank junior in right of payment to the Company’s senior indebtedness and to the Company’s obligations to its general creditors. The Company also has $20.6 million in floating Junior Subordinated Deferrable Interest Debentures (“Debentures”) issued by NHTB Capital Trust II (“Trust II”) and NHTB Capital Trust III (“Trust III”), which are both Connecticut statutory trusts. The Debentures were issued on March 30, 2014, carry a variable interest rate of three-month LIBOR plus 2.79% , and mature in 2034. The debt is callable by the Company at the time when any interest payment is made. Trust II and Trust III are considered variable interest entities for which the Company is not the primary beneficiary. Accordingly, Trust II and Trust III are not consolidated into the Company’s financial statements. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Pension Plans The Company maintains a legacy, employer-sponsored defined benefit pension plan (the “Plan”) for which participation and benefit accruals were frozen on January 13, 2017. The Plan was assumed in connection with a business combination in 2017. Accordingly, no employees are permitted to commence participation in the Plan and future salary increases and years of credited service are not considered when computing an employee’s benefits under the Plan. As of December 31, 2018 , all minimum Employee Retirement Income Security Act (“ERISA”) funding requirements have been met. The Company did not have any defined benefit pension plans prior to 2017. The following tables set forth information about the plan for the year ended December 31, 2018 and 2017 : (in thousands) 2018 2017 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 9,020 $ 8,642 Service cost — — Interest cost 315 334 Actuarial (gain) loss (771 ) 662 Benefits paid (291 ) (269 ) Settlements (264 ) (349 ) Projected benefit obligation at end of year 8,009 9,020 Change in fair value of plan assets: Fair value of plan assets at beginning of year 11,026 10,622 Expected return on plan assets (481 ) 1,022 Contributions by employer — — Benefits paid (291 ) (269 ) Settlements (264 ) (349 ) Fair value of plan assets at end of year 9,990 11,026 Overfunded status $ (1,981 ) $ (2,006 ) Amounts recognized in consolidated balance sheet: Other assets $ 1,981 $ 2,006 Net periodic pension cost is comprised of the following for the year ended December 31, 2018 and 2017 : (in thousands) 2018 2017 Interest cost $ 315 $ 334 Expected return on plan assets (706 ) (706 ) Settlement Charge — 13 Net periodic pension benefit cost (credit) $ (391 ) $ (359 ) (in thousands) 2018 2017 Net actuarial loss (gain) $ 415 $ 346 Settlement charge — (13 ) Net period pension benefit cost (credit) (391 ) (359 ) Total recognized in net periodic benefit cost (credit) and other comprehensive loss (income) $ 24 $ (26 ) Change in plan assets and benefit obligations recognized in accumulated other comprehensive income as of December 31, 2018 and 2017 are as follows: (in thousands) 2018 2017 Net actuarial loss (gain) $ 415 $ 346 Settlement charge — (13 ) Prior service cost (credit) 333 — Total accumulated other comprehensive loss (pre-tax) $ 748 $ 333 The after tax components of accumulated other comprehensive loss, which have not yet been recognized in net periodic pension cost, related to the Plan are a net loss of $573 thousand. The Company expects to make no cash contributions to the pension trust during the 2019 fiscal year. The amount expected to be amortized from accumulated other comprehensive loss into net periodic pension cost over the next fiscal year is zero . The principal actuarial assumptions used at December 31, 2018 and 2017 were as follows: 2018 2017 Projected benefit obligation Discount rate 4.23 % 3.56 % Net periodic pension cost Discount rate 3.56 % 4.09 % Long-term rate of return on plan assets 6.50 7.00 The discount rate that is used in the measurement of the pension obligation is determined by comparing the expected future retirement payment cash flows of the plan to the Citigroup Above Median Double-A Curve as of the measurement date. The expected long-term rate of return on Plan assets reflects expectations of future returns as applied to the plan’s target allocation of asset classes. In estimating that rate, appropriate consideration was given to historical returns earned by equities and fixed income securities. The Company’s overall investment strategy with respect to the Plan’s assets is to maintain assets at a level that will sufficiently cover future beneficiary obligations while achieving long term growth in assets. The Plan’s targeted asset allocation is 48% equity securities and 52% fixed-income securities primarily consisting of intermediate-term products. The fair values for investment securities are determined by quoted prices in active markets, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). The fair value of the Plan's assets by category and level within fair value hierarchy are as follows at December 31, 2018 and 2017 : 2018 (in thousands) Total Level 1 Level 2 Asset Category Equity mutual funds: Large-cap $ 1,730 $ 1,730 $ — Mid-cap 477 477 — Small-cap 469 469 — International 845 845 Fixed income funds: Fixed-income - core plus 3,945 3,945 — Intermediate duration 1,321 1,321 — Common stock 506 506 — Common/collective trusts - large-cap 469 — 469 Cash equivalents - money market 228 228 — Total $ 9,990 $ 9,521 $ 469 2017 (in thousands) Total Level 1 Level 2 Asset Category Equity mutual funds: Large-cap $ 2,143 $ 2,143 $ — Mid-cap 612 612 — Small-cap 613 613 — International 1,150 1,150 Fixed income funds: Fixed-income - core plus 3,896 3,896 — Intermediate duration 1,316 1,316 — Common stock 610 610 — Common/collective trusts - large-cap 555 — 555 Cash equivalents - money market 130 130 — Total $ 11,025 $ 10,470 $ 555 The Plan did not hold any assets classified as Level 3, and there were no transfers between levels during 2018 and 2017 . Estimated benefit payments under the Company's pension plan over the next 10 years at December 31, 2018 are as follows: Year Payments in Thousands 2019 $ 357 2020 383 2021 382 2022 400 2023 396 2024-2028 2,239 Non-qualified Supplemental Executive Retirement Plan The Company has non-qualified supplemental executive retirement agreements with certain retired officers. The agreements provide supplemental retirement benefits payable in installments over a period of years upon retirement or death. This agreement provides a stream of future payments in accordance with individually defined vesting schedules upon retirement, termination, or in the event that the participating executive leaves the Company following a change of control event. The following table sets forth changes in benefit obligation, changes in plan assets, and the funded status of the plan as of and for the years ended December 31, 2018 and December 31, 2017 : (in thousands) 2018 2017 Change in benefit obligation: Projected benefit obligation at beginning of year $ 3,451 $ 3,670 Service cost — — Interest cost 102 116 Actuarial loss/(gain) (142 ) 16 Benefits paid (378 ) (351 ) Projected benefit obligation at end of year $ 3,033 $ 3,451 Change in fair value of plan assets: Fair value of plan assets at beginning of year $ — $ — Expected return on plan assets — — Contributions by employer 378 351 Benefits paid (378 ) (351 ) Fair value of plan assets at end of year $ — $ — Underfunded status $ 3,033 $ 3,451 Amounts recognized in consolidated balance sheet Other liabilities $ 3,033 $ 3,451 Net periodic benefit cost is comprised of the following for the years ended December 31, 2018 and 2017 : (in thousands) 2018 2017 Interest cost $ 102 $ 116 Expected return on plan assets — — Amortization of unrecognized actuarial loss 29 21 Net periodic benefit cost $ 131 $ 137 (in thousands) 2018 2017 Net actuarial loss (gain) $ (142 ) $ 16 Amortization of unrecognized actuarial loss (29 ) (21 ) Total recognized in net periodic benefit cost and other comprehensive loss $ (171 ) $ (5 ) Change in plan assets and benefit obligations recognized in accumulated other comprehensive income in 2018 and 2017 are as follows: (in thousands) 2018 2017 Accumulated other comprehensive income at beginning of the year (pre-tax) $ 585 $ 590 Actuarial loss (gain) (142 ) 16 Amortization of actuarial loss (29 ) (21 ) Accumulated other comprehensive income at end of year (pre-tax) $ 414 $ 585 The after tax components of accumulated other comprehensive loss, which have not yet been recognized in net periodic benefit cost, related to the non-qualified supplemental executive retirement agreements are a net loss of $ 317 thousand. The amount expected to be amortized from accumulated other comprehensive income into net periodic benefit cost over then next fiscal year is $15 thousand. The principal actuarial assumptions used at December 31, 2018 and December 31, 2017 were as follows: 2018 2017 Discount rate beginning of year 3.13 % 3.31 % Discount rate end of year 3.83 3.13 The discount rate used in the measurement of the non-qualified supplemental executive retirement plan obligation is determined by comparing the expected future retirement payment cash flows to the Citigroup Above Median Double-A Curve as of the measurement date. The Company expects to contribute the following amounts to fund benefit payments under the supplemental executive retirement plans: (in thousands) Payments 2019 $ 378 2020 293 2021 260 2022 260 2023 260 2024-2036 2,518 401(k) Plan The Company maintains a Section 401(k) savings plan for substantially all of its employees. Employees are eligible to participate in the 401(k) Plan on the first day of any quarter following their date of hire and attainment of age 21 ½ . Under the plan, the Company makes a matching contribution of a portion of the amount contributed by each participating employee, up to a percentage of the employee’s annual salary. The plan allows for supplementary profit sharing contributions by the Company, at its discretion, for the benefit of participating employees. The total expense for this plan in 2018 , 2017 , and 2016 was $ 1.0 million , $ 970 thousand, and $ 439 thousand, respectively. Other Plans As a result of the acquisition of a business combination in 2017, the Company assumed salary continuation agreements for supplemental retirement income with certain prior executives and senior officers along with an executive indexed supplemental retirement plan for one prior executive. The total liability for these agreements included in other liabilities was $ 7.3 million at December 31, 2018 and $8.1 million at December 31, 2017 . Expense recorded in 2018 and 2017 under these agreements was $ 752 thousand and $581 thousand , respectively. The Company also assumed split-dollar life insurance agreements with the 2017 business combination with an accrued liability of $ 671 thousand as of year-end at December 31, 2018 and $687 thousand at December 31, 2017 . Expense recorded for the split-dollar life insurance agreements in 2018 was $57 thousand . In 2017, a net benefit of $9 thousand relating to split-dollar life insurance agreements was recognized. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table summarizes the current and deferred components of income tax expense (benefit) for each of the years ended December 31, 2018 , 2017 and 2016 : (in thousands) 2018 2017 2016 Current: Federal tax expense $ 6,775 $ 8,705 $ 5,189 State tax expense 1,230 1,039 217 Total current tax expense 8,005 9,744 5,406 Deferred tax expense (443 ) 2,898 470 Impact of federal tax reform enactment — 3,988 — Total income tax expense $ 7,562 $ 16,630 $ 5,876 The following table reconciles the expected federal income tax expense (computed by applying the federal statutory tax rate of 21%, 35% for years prior to 2018) to recorded income tax expense for the years ended December 31, 2018 , 2017 and 2016 : 2018 2017 2016 (in thousands, except ratios) Amount Rate Amount Rate Amount Rate Statutory tax rate $ 8,505 21.00 % $ 14,918 35.00 % $ 7,283 35.00 % Increase (decrease) resulting from: State taxes, net of federal benefit 908 2.24 986 2.31 141 0.68 Tax exempt interest (1,315 ) (3.25 ) (2,074 ) (4.87 ) (1,388 ) (6.67 ) Federal tax credits (125 ) (0.31 ) (130 ) (0.3 ) — — Officers' life insurance (382 ) (0.94 ) (538 ) (1.26 ) (244 ) (1.17 ) Acquisition costs — — 89 0.21 289 1.39 Stock-based compensation plans (120 ) (0.30 ) (241 ) (0.57 ) — — Impact of federal tax reform enactment — — 3,988 9.36 — — Other 91 0.23 (368 ) (0.86 ) (205 ) (0.99 ) Effective tax rate $ 7,562 18.67 % $ 16,630 39.02 % $ 5,876 28.24 % The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities at December 31, 2018 and 2017 are summarized below. The net deferred tax asset, which is included in other assets, amounted to $ 9.5 million at December 31, 2018 and $ 7.2 million at December 31, 2017 . The significant components of deferred tax assets and liabilities at December 31, 2018 and December 31, 2017 were as follows: 2018 2017 (in thousands) Assets Liabilities Assets Liabilities Allowance for loan losses $ 3,085 $ — $ 2,729 $ — Deferred compensation 3,242 — 3,333 — Unrealized gain or loss on securities available for sale 2,641 — 649 — Unrealized gain or loss on derivatives 685 — 853 — Depreciation — 1,517 — 1,356 Deferred loan origination costs — 725 — 655 Non-accrual interest 374 — 273 — Branch acquisition costs and goodwill — 784 — 737 Core deposit intangible — 1,309 — 1,525 Acquisition fair value adjustments 3,171 — 4,000 — Prepaid expenses — 215 — 302 Interest rate cap premium amortization — 257 — 276 Mortgage servicing rights — 721 — 769 Equity compensation 335 — 297 — Prepaid pension — 366 — 345 Contract incentives 1,658 — 594 — Other 217 — 417 — Total $ 15,408 $ 5,894 $ 13,145 $ 5,965 The Company has determined that a valuation allowance is not required for its net deferred tax asset since it is more likely than not that this asset is realizable principally through future taxable income and future reversal of existing temporary differences. The Company is subject to income tax in the U.S. federal jurisdiction and also in the states of Maine, New Hampshire and Massachusetts. The Company is no longer subject to examination by taxing authorities for years before 2015. On December 22, 2017, H.R.1, commonly known as the Tax Cuts and Jobs Act (the “Act”), was signed into law. The Act included several provisions affecting the Company's federal income tax expense, including the reduced federal income tax rate from 35% to 21% effective January 1, 2018. As a result of this rate reduction, the Company was required to re-measure, through income tax expense in the period of enactment, the deferred tax assets and liabilities using the enacted rate at which these items are expected to be recovered or settled. The re-measurement of the Company's net deferred tax asset resulted in additional 2017 income tax expense of $ 4.0 million. Also on December 22, 2017, the U.S. Securities and Exchange Commission (“SEC”) released Staff Accounting Bulletin No. 118 (“SAB 118”) which addressed any uncertainty or diversity of views in practice in accounting for the income tax effects of the Act in situations where a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete this accounting in the reporting period that includes the enactment date. SAB 118 allows for a measurement period not to extend beyond one year from the Act’s enactment date to complete the necessary accounting. As of December 31, 2017 the Company's $ 1.4 million deferred tax liability for temporary differences between the tax and financial reporting bases of fixed assets was recorded as a provisional amount based upon reasonable estimates. The final determination of this deferred tax liability was awaiting completion of a cost segregation analysis to determine the impact of applying accelerated tax depreciation to certain building costs, including application of the Act's new provisions for 100% bonus depreciation. Also as of December 31, 2017, the Company made no adjustments to deferred tax assets representing future deductions for accrued compensation that may be subject to new limitations under Internal Revenue Code Section 162(m) which, generally, limits the annual deduction for certain compensation paid to certain employees to $ 1.0 million . All of these matters were finalized in 2018 with no material impact to the Company's federal income tax expense. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES As part of its overall asset and liability management strategy, the Company periodically uses derivative instruments to minimize significant unplanned fluctuations in earnings and cash flows caused by interest rate volatility. The Company’s interest rate risk management strategy involves modifying the re-pricing characteristics of certain assets or liabilities so the changes in interest rates do not have a significant effect on net interest income. The Company recognizes its derivative instruments on the consolidated balance sheet at fair value. On the date the derivative instrument is entered into, the Company designates whether the derivative is part of a hedging relationship (i.e., cash flow or fair value hedge). The Company formally documents relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking hedge transactions. The Company also assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting the changes in cash flows or fair values of hedged items. Changes in fair value of derivative instruments that are highly effective and qualify as cash flow hedges are recorded in other comprehensive income or loss. Any ineffective portion is recorded in earnings. The Company discontinues hedge accounting when it is determined the derivative is no longer effective in offsetting changes of the hedged risk on the hedged item, or management determines the designation of the derivative as a hedging instrument is no longer appropriate. Information about derivative assets and liabilities at December 31, 2018 and December 31, 2017 , follows: December 31, 2018 Notional Amount Weighted Average Maturity Estimated Fair Value Asset (Liability) (in thousands) (in years) (in thousands) Cash flow hedges: Interest rate caps agreements $ 90,000 4.1 $ 803 Total cash flow hedges 90,000 4.1 803 Non-hedging derivatives: Interest rate lock commitments 957 0.1 8 Customer loan derivative liability 45,641 9.9 (1,353 ) Customer loan derivative asset 45,641 9.9 1,353 Total non-hedging derivatives 92,239 8 Total $ 182,239 $ 811 December 31, 2017 Notional Amount Weighted Average Maturity Estimated Fair Value Asset (Liability) (in thousands) (in years) (in thousands) Cash flow hedges: Interest rate caps agreements $ 90,000 5.1 $ 669 Total cash flow hedges 90,000 669 Economic hedges: Forward sale commitments 20,352 0.2 (221 ) Total economic hedges 20,352 (221 ) Non-hedging derivatives: Interest rate lock commitments 19,853 0.2 (1 ) Total non-hedging derivatives 19,853 (1 ) Total $ 130,205 $ 447 Information about derivative assets and liabilities for December 31, 2018 and December 31, 2017 , follows: Twelve Months Ended December 31, (in thousands) 2018 2017 Cash flow hedges: Interest rate cap agreements Realized in interest expense $ (519 ) $ (257 ) Economic hedges: Forward commitments Realized gain (loss) in other non-interest income 221 (77 ) Non-hedging derivatives: Interest rate lock commitments Realized gain (loss) in other non-interest income 9 (22 ) Cash flow hedges In 2014, interest rate cap agreements were purchased to limit the Company’s exposure to rising interest rates on four rolling, three-month borrowings indexed to three-month LIBOR. Under the terms of the agreements, the Company paid total premiums of $4.6 million for the right to receive cash flow payments if three-month LIBOR rises above the caps of 3.00% , thus effectively ensuring interest expense on the borrowings at maximum rates of 3.00% for the duration of the agreements. The interest rate cap agreements were designated as cash flow hedges. The fair values of the interest rate cap agreements are included in other assets on the Company’s consolidated balance sheets. Changes in the fair value, representing unrealized gains or losses, are recorded in accumulated other comprehensive income, net of tax. The premiums paid on the interest rate cap agreements are being recognized as increases in interest expense over the duration of the agreements using the caplet method. Economic hedges The Company utilizes forward sale commitments to hedge interest rate risk and the associated effects on the fair value of interest rate lock commitments and loans originated for sale. The forward sale commitments are accounted for as derivatives with changes in fair value recorded in current period earnings. The Company typically uses mandatory delivery contracts, which are loan sale agreements where the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date. Generally, the Company may enter into mandatory delivery contracts shortly after the loan closes with a customer. Non-hedging derivatives Interest rate lock commitments The Company enters into interest rate lock commitments (“IRLCs”) for residential mortgage loans, which commit the Company to lend funds to a potential borrower at a specific interest rate and within a specified period of time. IRLCs relate to the origination of residential mortgage loans that are held for sale are considered derivative financial instruments under applicable accounting guidance. Outstanding IRLCs expose the Company to the risk that the price of the mortgage loans underlying the commitments may decline due to increases in mortgage interest rates from inception of the rate lock to the funding of the loan. The IRLCs are free-standing derivatives which are carried at fair value with changes recorded in non-interest income in the Company’s Consolidated Statements of Income. Changes in the fair value of IRLCs subsequent to inception are based on; (i) changes in the fair value of the underlying loan resulting from the fulfillment of the commitment and (ii) changes in the probability when the loan will fund within the terms of the commitment, which is affected primarily by changes in interest rates and the passage of time. Customer loan derivatives The Company enters into customer loan derivatives to facilitate the risk management strategies for commercial banking customers. The Company mitigates this risk by entering into equal and offsetting loan swap agreements with highly rated third-party financial institutions. The loan swap agreements are free-standing derivatives and are recorded at fair value in the Company's consolidated balance sheet. The Company is party to master netting arrangements with its financial institutional counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide for a single net settlement of all loan swap agreements, as well as collateral or cash funds, in the event of default on, or termination of, any one contract. Collateral is provided by cash or securities received or posted by the counterparty with net liability positions, respectively, in accordance with contract thresholds. Currently, the Company has posted cash of $650 thousand with counterparties. |
OTHER COMMITMENTS, CONTINGENCIE
OTHER COMMITMENTS, CONTINGENCIES, AND OFF-BALANCE SHEET ACTIVITIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
OTHER COMMITMENTS, CONTINGENCIES, AND OFF-BALANCE SHEET ACTIVITIES | OTHER COMMITMENTS, CONTINGENCIES, AND OFF-BALANCE SHEET ACTIVITIES Customer Obligations The Company is a party to financial instruments in the normal course of business to meet financing needs of its customers. These financial instruments include commitments to extend credit, unused or unadvanced loan funds, and letters of credit. The Company uses the same lending policies and procedures to make such commitments as it uses for other lending products. Customer’s creditworthiness is evaluated on a case-by-case basis. Commitments to originate loans, including unused or unadvanced loan funds, are agreements to lend to a customer provided there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require customer payment of a fee. Since many of the commitments are expected to expire without being fully drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Standby letters of credit generally become payable upon the failure of the customer to perform according to the terms of the underlying contract with the third party, while commercial letters of credit are issued specifically to facilitate commerce and typically result in the commitment being drawn on when the underlying transaction is consummated between the customer and a third party. The contractual amount of these letters of credit represents the maximum potential future payments guaranteed by the Company. Typically these letters of credit expire if unused; therefore the total amounts do not necessarily represent future cash requirements. The following table summarizes the contractual amounts of commitments and contingent liabilities to customers as of December 31, 2018 and December 31, 2017 : (in thousands) 2018 2017 Commitments to originate new loans $ 20,431 $ 52,438 Unused funds on commercial and other lines of credit 169,063 134,408 Unadvanced funds on home equity lines of credit 106,121 108,745 Unadvanced funds on construction and real estate loans 133,130 87,915 Commercial letters of credit 1,171 928 Standby letters of credit 486 486 Total $ 430,402 $ 384,920 Operating Lease Obligations The Company leases certain properties used in operations under terms of operating leases, which include renewal options. The following table sets forth the approximate future lease payments over the remaining terms of the non-cancelable leases as of December 31, 2018 . (in thousands) Amount 2019 $ 929 2020 902 2021 900 2022 916 2023 905 2024 and thereafter 6,754 Total $ 11,306 In connection the foregoing lease obligations, in 2018 , 2017 and 2016 , the Company recorded $ 1.1 million, $ 872 thousand, and $ 352 thousand in rent expense, respectively, which is included in occupancy and equipment expense in the Consolidated Statements of Income. Legal Claims Various legal claims arise from time to time in the normal course of business. As of December 31, 2018 , neither the Company nor its subsidiaries were involved in any pending legal proceedings believed by management to be material to the Company’s financial condition or results of operations. Periodically, there have been various claims and lawsuits involving the Company, such as claims to enforce liens, condemnation proceedings on properties in which the Company holds security interests, claims involving the making and servicing of real property loans, and other issues incident in the normal course of the Company's business. However, neither the Company nor its subsidiaries are a party to any pending legal proceedings that it believes, in the aggregate, would have a material adverse effect on the financial condition or operations of the Company. Additionally, an estimate of future, probable losses cannot be estimated as of December 31, 2018 . |
SHAREHOLDERS_ EQUITY AND EARNIN
SHAREHOLDERS’ EQUITY AND EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS’ EQUITY AND EARNINGS PER COMMON SHARE | SHAREHOLDERS’ EQUITY AND EARNINGS PER COMMON SHARE The actual and required capital ratios at December 31, 2018 and December 31, 2017 were as follows: 2018 Actual Minimum Capital Requirement Minimum to be Well-Capitalized Under Prompt Corrective Action Provisions (in thousands, except ratios) Amount Ratio Amount Ratio Amount Ratio Company (consolidated) Total capital to risk-weighted assets $ 331,628 14.23 % $ 186,405 8.00 % $ 244,656 10.00 % Common equity tier 1 capital to risk-weighted assets 274,838 11.80 104,853 4.50 151,454 6.50 Tier 1 capital to risk-weighted assets 295,458 12.68 139,803 6.00 186,404 8.00 Tier 1 capital to average assets 295,458 8.53 138,482 4.00 173,102 5.00 Bank Total capital to risk-weighted assets $ 321,390 13.82 % $ 186,092 8.00 % $ 244,246 10.00 % Common equity tier 1 capital to risk-weighted assets 302,220 12.99 104,677 4.50 151,200 6.50 Tier 1 capital to risk-weighted assets 302,220 12.99 139,569 6.00 186,092 8.00 Tier 1 capital to average assets 302,220 8.74 138,392 4.00 172,990 5.00 2017 Actual Minimum Capital Requirement Minimum to be Well-Capitalized Under Prompt Corrective Action Provisions (in thousands, except ratios) Amount Ratio Amount Ratio Amount Ratio Company (consolidated) Total capital to risk-weighted assets $ 307,305 13.73 % $ 179,047 8.00 % $ 234,999 10.50 % Common equity tier 1 capital to risk-weighted assets 252,096 11.26 100,714 4.50 145,476 6.50 Tier 1 capital to risk-weighted assets 272,716 12.19 134,286 6.00 179,047 8.00 Tier 1 capital to average assets 272,716 8.10 134,758 4.00 168,447 5.00 Bank Total capital to risk-weighted assets $ 306,495 13.71 % $ 178,868 8.00 % $ 234,764 10.50 % Common equity tier 1 capital to risk-weighted assets 288,906 12.92 100,613 4.50 145,331 6.50 Tier 1 capital to risk-weighted assets 288,906 12.92 134,151 6.00 178,868 8.00 Tier 1 capital to average assets 288,906 8.58 134,702 4.00 168,378 5.00 At each date shown, the Company and the Bank met the conditions to be classified as “well capitalized” under the relevant regulatory framework. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table above. Effective January 1, 2015, the Company and the Bank became subject to the Basel III rule that requires the Company and the Bank to assess their Common equity tier 1 capital to risk weighted assets and the Company and the Bank each exceed the minimum to be well capitalized. In addition, the final capital rules added a requirement to maintain a minimum conservation buffer, composed of common equity tier 1 capital, of 2.5% of risk weighted assets, to be phased-in over three years and applied to the common equity tier 1 risk-based capital ratio, the Tier 1 risk-based capital ratio and the Total risk-based capital ratio. Accordingly, banking organizations, on a fully phased in basis no later than January 1, 2019, must maintain a minimum Common equity tier 1 risk-based capital ratio of 7.0% , a minimum Tier 1 risk-based capital ratio of 8.5% and a minimum Total risk-based capital ratio of 10.5% . The required minimum conservation buffer began to be phased-in incrementally, starting at 0.625% on January 1, 2016 and increasing to 1.25% on January 1, 2017. The buffer increased to 1.875% on January 1, 2018 and will increase to 2.5% on January 1, 2019. The final capital rules impose restrictions on capital distributions and certain discretionary cash bonus payments if the minimum capital conservation buffer is not met. At December 31, 2018 , the capital levels of both the Company and the Bank exceeded all regulatory capital requirements and their regulatory capital ratios were above the minimum levels required to be considered well-capitalized for regulatory purposes. The capital levels of both the Company and the Bank at December 31, 2018 also exceeded the minimum capital requirements including the currently applicable capital conservation buffer of 0.625% . Accumulated Other Comprehensive Loss Components of accumulated other comprehensive loss at December 31, 2018 and December 31, 2017 are as follows: (in thousands) 2018 2017 Other accumulated comprehensive loss, before tax: Net unrealized loss on AFS securities $ (11,304 ) $ (2,741 ) Net unrealized loss on derivative hedges (2,934 ) (3,604 ) Net unrealized loss on post-retirement plans (1,162 ) (950 ) Income taxes related to items of accumulated other comprehensive loss: Net unrealized loss on AFS securities 2,641 1,030 Net unrealized loss on derivative hedges 685 1,354 Net unrealized loss on post-retirement plans 272 357 Accumulated other comprehensive loss $ (11,802 ) $ (4,554 ) The following table presents the components of other comprehensive income in 2018 , 2017 and 2016 : 2018 (in thousands) Before Tax Tax Effect Net of Tax Net unrealized gain on AFS securities: Net unrealized gain arising during the period $ (9,487 ) $ 2,194 $ (7,293 ) Less: reclassification adjustment for gains (losses) realized in net income (924 ) 216 (708 ) Net unrealized gain on AFS securities (8,563 ) 1,978 (6,585 ) Net unrealized loss on derivative hedges: Net unrealized loss arising during the period 654 (168 ) 486 Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized loss on derivative hedges 654 (168 ) 486 Net unrealized loss on post-retirement plans: Net unrealized loss arising during the period (245 ) 54 (191 ) Less: reclassification adjustment for gains (losses) realized in net income (29 ) 7 (22 ) Net unrealized loss on post-retirement plans (216 ) 47 (169 ) Other comprehensive loss $ (8,125 ) $ 1,857 $ (6,268 ) 2017 (in thousands) Before Tax Tax Effect Net of Tax Net unrealized loss on AFS securities: Net unrealized loss arising during the period $ 545 $ (121 ) $ 424 Less: reclassification adjustment for gains (losses) realized in net income 19 (7 ) 12 Net unrealized loss on AFS securities 526 (114 ) 412 Net unrealized loss on derivative hedges: Net unrealized loss arising during the period (838 ) 386 (452 ) Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized loss on derivative hedges (838 ) 386 (452 ) Net unrealized loss on post-retirement plans: Net unrealized gain arising during the period (347 ) 146 (201 ) Less: reclassification adjustment for gains (losses) realized in net income (21 ) 8 (13 ) Net unrealized gain on post-retirement plans (326 ) 138 (188 ) Other comprehensive loss $ (638 ) $ 410 $ (228 ) 2016 (in thousands) Before Tax Tax Effect Net of Tax Net unrealized loss on AFS securities: Net unrealized loss arising during the period $ (7,561 ) $ 2,647 $ (4,914 ) Less: reclassification adjustment for gains (losses) realized in net income 4,498 (1,574 ) 2,924 Net unrealized loss on AFS securities (12,059 ) 4,221 (7,838 ) Net unrealized loss on derivative hedges: Net unrealized loss arising during the period (272 ) 95 (177 ) Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized loss on derivative hedges (272 ) 95 (177 ) Net unrealized loss on post-retirement plans: Net unrealized gain arising during the period 62 (20 ) 42 Less: reclassification adjustment for gains (losses) realized in net income (28 ) 10 (18 ) Net unrealized gain on post-retirement plans 90 (30 ) 60 Other comprehensive loss $ (12,241 ) $ 4,286 $ (7,955 ) The following table presents the changes in each component of accumulated other comprehensive income/(loss) in 2018 , 2017 and 2016 : 2018 (in thousands) Net unrealized gain on AFS Securities Net loss on effective derivative hedges Net unrealized loss on post-retirement plans Total Balance at beginning of period $ (1,713 ) $ (2,250 ) $ (591 ) $ (4,554 ) Other comprehensive gain/(loss) before reclassifications (7,293 ) 486 (191 ) (6,998 ) Less: amounts reclassified from accumulated other comprehensive income (708 ) — (22 ) (730 ) Total other comprehensive loss (6,585 ) 486 (169 ) (6,268 ) Less: amounts reclassified from accumulated other comprehensive income for ASU 2018-02 (367 ) (485 ) (128 ) (980 ) Balance at end of period $ (8,665 ) $ (2,249 ) $ (888 ) $ (11,802 ) 2017 (in thousands) Net unrealized gain on AFS Securities Net loss on effective derivative hedges Net unrealized loss on post-retirement plans Total Balance at beginning of period $ (2,125 ) $ (1,798 ) $ (403 ) $ (4,326 ) Other comprehensive gain/(loss) before reclassifications 424 (452 ) (201 ) (229 ) Less: amounts reclassified from accumulated other comprehensive income 12 — (13 ) (1 ) Total other comprehensive loss 412 (452 ) (188 ) (228 ) Balance at end of period $ (1,713 ) $ (2,250 ) $ (591 ) $ (4,554 ) 2016 (in thousands) Net unrealized gain on AFS Securities Net loss on effective derivative hedges Net unrealized loss on post-retirement plans Total Balance at beginning of period $ 5,713 $ (1,621 ) $ (463 ) $ 3,629 Other comprehensive gain/(loss) before reclassifications (4,914 ) (177 ) 42 (5,049 ) Less: amounts reclassified from accumulated other comprehensive income 2,924 — (18 ) 2,906 Total other comprehensive loss (7,838 ) (177 ) 60 (7,955 ) Balance at end of period $ (2,125 ) $ (1,798 ) $ (403 ) $ (4,326 ) The following tables presents the amounts reclassified out of each component of accumulated other comprehensive income (loss) in 2018, 2017 and 2016 : (in thousands) 2018 2017 2016 Affected Line Item where Net Income is Presented Realized gains on AFS securities: Before tax $ (924 ) $ 19 $ 4,498 Non-interest income Tax effect 216 (7 ) (1,574 ) Tax expense Total reclassifications for the period $ (708 ) $ 12 $ 2,924 Net of tax (in thousands) 2018 2017 2016 Affected Line Item where Net Income is Presented Realized loss on post-retirement plans: Before tax $ (29 ) $ (21 ) $ (28 ) Salaries and benefits Tax effect 7 8 10 Tax benefit Total reclassifications for the period $ (22 ) $ (13 ) $ (18 ) Net of tax Earnings per share have been computed based on the following (average diluted shares outstanding are calculated using the treasury stock method): (in thousands, except per share and share data) 2018 2017 2016 Net income $ 32,937 $ 25,993 $ 14,933 Average number of basic common shares outstanding 15,487,686 15,183,615 9,068,624 Plus: dilutive effect of stock options and awards outstanding 76,778 106,795 74,029 Average number of diluted common shares outstanding 15,564,464 15,290,410 9,142,653 Anti-dilutive options excluded from earnings calculation 7,991 8,659 90,249 Earnings per share: Basic $ 2.13 $ 1.71 $ 1.65 Diluted $ 2.12 $ 1.70 $ 1.63 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION PLANS | STOCK BASED COMPENSATION PLANS On October 3, 2000, the shareholders of the Company approved the Bar Harbor Bankshares and Subsidiaries Incentive Stock Option Plan of 2000 (the “ISOP”) for its officers and employees, which provided for the issuance of up to 1,012,500 shares of common stock. The purchase price of the stock covered by each option must be at least 100% of the trading value on the date such option was granted. Vesting terms ranged from three to seven years. According to the ISOP no option shall be granted after October 3, 2010, ten years after the effective date of the ISOP. On May 19, 2009, the shareholders of the Company approved the adoption of the 2009 Bar Harbor Bankshares and Subsidiaries Equity Incentive Plan (the “2009 Plan”) for employees and directors of the Company and its subsidiaries. Subject to adjustment for stock splits, stock dividends, and similar events, the total number of shares of common stock that can be issued under the 2009 Plan over the 10 year period in which the plan will be in place is 393,750 shares of common stock, provided that no more than 168,750 shares of such stock can be awarded in the form of restricted stock or restricted stock units, as further described in the 2009 Plan. The 2009 Plan is administered by the Company’s Compensation Committee. All employees and directors of the Company and its subsidiaries are eligible to participate in the 2009 Plan, subject to the discretion of the administrator and the terms of the 2009 Plan. The maximum stock award granted to one individual may not exceed 45,000 shares of common stock (subject to adjustment for stock splits, and similar events) for any calendar year. No grants were made after May 18, 2015 pursuant to this plan. On May 19, 2015, the shareholders of the Company approved the adoption of the 2015 Bar Harbor Bankshares and Subsidiaries Equity Incentive Plan (the “2015 Plan”) for employees and directors of the Company and its subsidiaries. Subject to adjustment for stock splits, stock dividends, and similar events, the total number of shares of common stock that can be issued under the 2015 Plan over the 10 year period in which the plan will be in place is 420,000 shares of common stock. The 2015 Plan is administered by the Company’s Compensation Committee. All employees and directors of the Company and its subsidiaries are eligible to participate in the 2015 Plan, subject to the discretion of the administrator and the terms of the 2015 Plan. The maximum stock award granted to one individual may not exceed 30,000 shares of common stock (subject to adjustment for stock splits, and similar events) for any calendar year. According to the 2015 Plan no shares shall be granted after May 19, 2019. As of December 31, 2018 , there were 117,134 shares available for grant under this plan. In April of 2013, the Board of Directors approved a Long Term Incentive Program for senior management members. The program is designed to be made up of a series of three year rolling plans utilizing the shares made available through the approved equity plans. Grants may be given in time vested restricted stock awards, time vested restricted stock units or performance vested restricted stock units, or a combination of these types of grants. Compensation expense recognized in connection with the stock based compensation plans are presented in the following table for the years ended December 31, 2018 , 2017 , and 2016 : (in thousands) 2018 2017 2016 Stock options and restricted stock awards $ 350 $ 399 $ 543 Performance stock units 237 290 304 Restricted stock units 711 585 431 Total compensation expense $ 1,298 $ 1,274 $ 1,278 The total tax benefit recognized associated with stock options and restricted stock awards for the years ended 2018 , 2017 and 2016 was $ 81 thousand, $308 thousand and $274 thousand , respectively. The total tax benefit recognized associated with restricted stock units and performance stock units for the years ended 2018 , 2017 and 2016 was $ 221 thousand, $423 thousand and $320 thousand , respectively. Stock Option and Restricted Stock Awards Activity: A summary combined status of the stock option and restricted stock awards as of December 31, 2018 and 2017 , and changes during the year then ended is presented below: Stock Options Number of Stock Options Outstanding Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding at January 1, 2018 169,921 $ 18.95 Granted — — Exercised (47,534 ) 16.32 Forfeited (750 ) 22.16 Outstanding at December 31, 2018 121,637 $ 19.96 $ 313 Ending vested and expected to vest December 31, 2018 121,637 $ 19.96 $ 313 Exercisable at December 31, 2018 101,554 20.66 192 Stock Options Number of Stock Options Outstanding Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding at January 1, 2017 236,763 $ 17.99 Granted — — Exercised (55,725 ) 15.19 Forfeited (11,117 ) 17.38 Outstanding at December 31, 2017 169,921 $ 18.95 1,370 Ending vested and expected to vest December 31, 2017 169,921 $ 18.95 $ 1,370 Exercisable at December 31, 2017 100,317 18.66 838 Restricted Stock Awards Number of Restricted Stock Awards Outstanding Weighted Average Grant Date Fair Value Outstanding at January 1, 2018 — — Awarded 12,420 $ 24.14 Vested (12,420 ) 24.14 Forfeited — — Outstanding at December 31, 2018 — $ — Restricted Stock Awards Number of Restricted Stock Awards Outstanding Weighted Average Grant Date Fair Value Outstanding at January 1, 2017 — — Awarded 8,004 $ 29.96 Vested (8,004 ) 29.96 Forfeited — — Outstanding at December 31, 2017 — $ — The intrinsic value of the options exercised under both plans for the years ended December 31, 2018 , 2017 , and 2016 , was approximately $913 thousand , $760 thousand and $708 thousand , respectively. As of December 31, 2018 , there was approximately $8 thousand of unrecognized compensation cost related to unvested stock option awards, net of estimated forfeitures. This amount is expected to be recognized as expense over the next six years, with a weighted average recognition period of 1.36 years. Performance Stock Units During 2018 , performance stock unit awards were granted to certain executive officers providing the opportunity to earn shares of common stock of the Company collectively ranging from zero to 28,082 shares, based on the Company’s performance compared to peers. The performance stock units granted will vest only if the performance measures are achieved. Failure to achieve the performance measures will result in all or a portion of shares being forfeited. The performance shares granted had a weighted average fair value of $ 26.30 at the date of grant, and will be earned over a three year performance period. During 2017 , performance stock unit awards were granted to certain executive officers providing the opportunity to earn shares of common stock of the Company collectively ranging from zero to 19,973 shares, based on the Company’s performance compared to peers. The performance stock units granted will vest only if the performance measures are achieved. Failure to achieve the performance measures will result in all or a portion of shares being forfeited. The performance shares granted had a weighted average fair value of $ 26.74 at the date of grant, and will be earned over a three year performance period. The following table summarizes performance units at target as of December 31, 2018 and 2017 : Performance Stock Units Number of Performance Stock Units Outstanding Weighted Average Grant Date Fair Value Nonvested at January 1, 2018 33,627 $ 25.21 Awarded 23,011 26.30 Vested and exercised (15,017 ) 22.25 Forfeited (3,756 ) 27.94 Nonvested at December 31, 2018 37,865 $ 26.77 Performance Stock Units Number of Performance Stock Units Outstanding Weighted Average Grant Date Fair Value Nonvested at January 1, 2017 34,246 $ 21.25 Awarded 17,711 26.74 Vested and exercised (15,121 ) 18.84 Forfeited (3,209 ) 21.51 Nonvested at December 31, 2017 33,627 $ 25.21 The intrinsic value of the performance stock units vested and exercised for the years ended December 31, 2018, 2017 and 2016, was $337 thousand , $285 thousand and $336 thousand , respectively. Restricted Stock Units During 2018 and 2017 , restricted stock units were granted to certain executive officers and senior vice presidents. The restricted shares granted were valued between $ 24.85 and $30.19 for 2018 and between $ 26.86 and $ 30.93 for 2017 the fair market value at the date of grant and vest annually over three years. The following table summarizes restricted stock units activity in 2018 and 2017 : Restricted Stock Units Number of Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Outstanding at January 1, 2018 74,168 $ 26.60 Granted 46,743 28.66 Vested and exercised (26,489 ) 24.36 Forfeited (13,682 ) 28.28 Outstanding at December 31, 2018 80,740 $ 28.24 Restricted Stock Units Number of Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Outstanding at January 1, 2017 40,681 $ 22.03 Granted 57,561 28.48 Vested and exercised (12,667 ) 21.49 Forfeited (11,407 ) 25.43 Outstanding at December 31, 2017 74,168 $ 26.60 The intrinsic value of the restricted stock units vested and exercised for the years ended December 31, 2018, 2017 and 2016, was $594 thousand , $272 thousand and $235 thousand , respectively. As of December 31, 2018 , there was $1.8 million of total unrecognized compensation cost related to nonvested restricted stock units and performance stock units granted under the Plans. That cost is expected to be recognized over a weighted average period of 2.0 years. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and financial liabilities that are carried at fair value. Recurring Fair Value Measurements The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2018 and December 31, 2017 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. December 31, 2018 (in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Available for sale securities: Mortgage-backed securities: US Government-sponsored enterprises $ — $ 404,952 $ — $ 404,952 US Government agency — 110,512 — 110,512 Private label — 20,382 — 20,382 Obligations of states and political subdivisions thereof — 132,265 — 132,265 Corporate bonds — 57,726 — 57,726 Derivative assets — 2,156 8 2,164 Derivative liabilities — (1,353 ) — (1,353 ) December 31, 2017 (in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Available for sale securities: Obligations of US Government sponsored enterprises $ — $ 6,972 $ — $ 6,972 Mortgage-backed securities: US Government-sponsored enterprises — 443,003 — 443,003 US Government agency — 95,596 — 95,596 Private label — 674 — 674 Obligations of states and political subdivisions thereof — 140,200 — 140,200 Corporate bonds — 30,797 — 30,797 Derivative assets — 669 — 669 Derivative liabilities — (222 ) (222 ) Securities Available for Sale: All securities and major categories of securities classified as available for sale are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from independent pricing providers. The fair value measurements used by the pricing providers consider observable data that may include dealer quotes, market maker quotes and live trading systems. If quoted prices are not readily available, fair values are determined using matrix pricing models, or other model-based valuation techniques requiring observable inputs other than quoted prices such as market pricing spreads, credit information, callable features, cash flows, the U.S. Treasury yield curve, trade execution data, market consensus prepayment speeds, default rates, and the securities’ terms and conditions, among other things. Derivative Assets and Liabilities Interest Rate Lock Commitments. The Company enters into IRLCs for residential mortgage loans, which commit the Company to lend funds to a potential borrower at a specific interest rate and within a specified period of time. The estimated fair value of commitments to originate residential mortgage loans for sale is based on quoted prices for similar loans in active markets. However, this value is adjusted by a factor which considers the likelihood that the loan in a lock position will ultimately close. The closing ratio is derived from the Bank’s internal data and is adjusted using significant management judgment. As such, IRLCs are classified as Level 3 measurements. Forward Sale Commitments . The Company utilizes forward sale commitments as economic hedges against potential changes in the values of the IRLCs and loans originated for sale. The fair values of the Company’s mandatory delivery loan sale commitments are determined similarly to the IRLCs using quoted prices in the market place that are observable. However, closing ratios included in the calculation are internally generated and are based on management’s judgment and prior experience, which are considered factors that are not observable. As such, mandatory delivery forward commitments are classified as Level 3 measurements. Customer Loan Derivatives. The valuation of the Company’s customer loan derivatives is obtained from a third-party pricing service and is determined using a discounted cash flow analysis on the expected cash flows of each derivative. The pricing analysis is based on observable inputs for the contractual terms of the derivatives, including the period to maturity and interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own non-performance risk and the respective counterparty’s non-performance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of non-performance risk, the Company has considered the impact of master netting arrangements and any applicable credit enhancements, such as collateral postings. Although the Company has determined that the majority of the inputs used to value its customer loan derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of December 31, 2018 , the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. The table below presents the changes in Level 3 assets and liabilities that were measured at fair value on a recurring basis in 2018 and 2017 . Assets (Liabilities) (in thousands) Interest Rate Lock Commitments Forward Commitments December 31, 2016 $ — $ — Business combination, January 13, 2017 96 23 Goodwill adjustment for business combination (75 ) (167 ) Realized loss recognized in non-interest income (22 ) (77 ) December 31, 2017 $ (1 ) $ (221 ) Realized gain recognized in non-interest income 9 221 December 31, 2018 $ 8 $ — Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities is as follows: (in thousands, except ratios) Fair Value Valuation Techniques Unobservable Inputs Significant Unobservable Input Value Assets (Liabilities) Interest Rate Lock Commitment $ 8 Historical trend Closing Ratio 90 % Pricing Model Origination Costs, per loan $ 1.7 Forward Commitments — Quoted prices for similar loans in active markets. Freddie Mac pricing system Pair-off contract price Total $ 8 There were no level 3 assets and liabilities that were measured at fair value on a recurring basis in 2018 and 2017 . Non-Recurring Fair Value Measurements The Company is required, on a non-recurring basis, to adjust the carrying value or provide valuation allowances for certain assets using fair value measurements in accordance with U.S. GAAP. The following is a summary of applicable non-recurring fair value measurements as of December 31, 2018 and December 31, 2017 . There are no liabilities measured at fair value on a non-recurring basis. December 31, 2018 December 31, 2017 December 31, 2018 Fair Value Measurement Date as of December 31, 2018 (in thousands) Level 3 Inputs Level 3 Total Gains (Losses) Level 3 Inputs Assets Impaired loans $ 15,213 $ 10,793 $ (4,420 ) December 2018 Capitalized servicing rights 4,882 4,158 — December 2018 Other real estate owned 2,351 122 (20 ) April 2018 Total $ 22,446 $ 15,073 $ (4,440 ) Quantitative information about the significant unobservable inputs within Level 3 non-recurring assets as of December 31, 2018 and December 31, 2017 is as follows: Fair Value Range (Weighted Average) (a) (in thousands, except ratios) December 31, 2018 Valuation Techniques Unobservable Inputs Assets Impaired loans $ 11,676 Fair value of collateral - appraised value Loss severity 0% to 55.00% Appraised value $0 to $6,915 Impaired loans 3,537 Discounted cash flow Discount rate 2.88% to 9.50% Cash flows $22 to $1,072 Capitalized servicing rights 4,882 Discounted cash flow Constant prepayment rate (CPR) 8.19 % Discount rate 10.08 % Other real estate owned 2,351 Fair value of collateral less selling costs Appraised value $2,700 Selling costs 12.93 % Total $ 22,446 ______________________________________ (a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties. Fair Value Range (Weighted Average) (a) (in thousands, except ratios) December 31, 2017 Valuation Techniques Unobservable Inputs Assets Impaired loans $ 8,586 Fair value of collateral - appraised value Loss severity 15.70% to 45.28% Appraised value $100 to $7,545 Impaired loans 2,207 Discount cash flow Discount rate 2.63% to 9.50% Cash flows $6 to $320 Capitalized servicing rights 4,158 Discounted cash flow Constant prepayment rate (CPR) 10.97 % Discount rate 10.10 % Other real estate owned 122 Fair value of collateral less selling costs Appraised value $136 Selling costs 10.00 % Total $ 15,073 ______________________________________ (a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties. There were no Level 1 or Level 2 non-recurring fair value measurements for the periods ended December 31, 2018 and December 31, 2017 . Impaired Loans. Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records non-recurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Non-recurring adjustments can also include certain impairment amounts for collateral-dependent loans calculated when establishing the allowance for credit losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated valuation amount does not necessarily represent the fair value of the loan. Real estate collateral is typically valued using appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace. However, the choice of observable data is subject to significant judgment, and there are often adjustments based on judgment in order to make observable data comparable and to consider the impact of time, the condition of properties, interest rates, and other market factors on current values. Additionally, commercial real estate appraisals frequently involve discounting of projected cash flows, which relies inherently on unobservable data. Therefore, non-recurring fair value measurement adjustments that relate to real estate collateral have generally been classified as Level 3. Estimates of fair value for other collateral that supports commercial loans are generally based on assumptions not observable in the marketplace and therefore such valuations have been classified as Level 3. Capitalized loan servicing rights . A loan servicing right asset represents the amount by which the present value of the estimated future net cash flows to be received from servicing loans exceed adequate compensation for performing the servicing. The fair value of servicing rights is estimated using a present value cash flow model. The most important assumptions used in the valuation model are the anticipated rate of the loan prepayments and discount rates. Adjustments are only recorded when the discounted cash flows derived from the valuation model are less than the carrying value of the asset. Although some assumptions in determining fair value are based on standards used by market participants, some are based on unobservable inputs and therefore are classified in Level 3 of the valuation hierarchy. Other real estate owned (“OREO”). OREO results from the foreclosure process on residential or commercial loans issued by the Bank. Upon assuming the real estate, the Company records the property at the fair value of the asset less the estimated sales costs. Thereafter, OREO properties are recorded at the lower of cost or fair value less the estimated sales costs. OREO fair values are primarily determined based on Level 3 data including sales comparables and appraisals. Summary of Estimated Fair Values of Financial Instruments The following table represents estimated fair values, and related carrying amounts of the Company’s financial instruments as of December 31, 2018 and December 31, 2017 . Certain financial instruments and all non-financial instruments are excluded from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein may not necessarily represent the underlying fair value of the Company. December 31, 2018 (in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 98,754 $ 98,754 $ 98,754 $ — $ — Securities available for sale 725,837 725,837 — 725,837 — FHLB bank stock 35,659 35,659 — 35,659 — Net loans 2,476,361 2,415,863 — — 2,415,863 Accrued interest receivable 3,533 3,533 — 3,533 — Cash surrender value of bank-owned life insurance policies 73,810 73,810 — 73,810 — Derivative assets 2,164 2,164 — 2,156 8 Financial Liabilities Total deposits $ 2,483,238 $ 2,404,250 $ — $ 2,404,250 $ — Other short-term borrowings 36,211 36,171 — 36,171 — Federal Home Loan Bank advances 644,611 643,065 — 643,065 — Subordinated borrowings 37,973 37,973 — 37,973 — Junior subordinated borrowings 5,000 3,923 — 3,923 — Derivative liabilities (1,353 ) (1,353 ) — — (1,353 ) December 31, 2017 (in thousands) Carrying Fair Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 90,685 $ 90,685 $ 90,685 $ — $ — Securities available for sale 717,242 717,242 — 717,242 — FHLB bank stock 38,105 38,105 — 38,105 — Net loans 2,473,288 2,433,557 — — 2,433,557 Accrued interest receivable 3,347 3,347 — 3,347 — Cash surrender value of bank-owned life insurance policies 57,997 57,997 — 57,997 — Derivative assets 669 669 — 669 — Financial Liabilities Total deposits $ 2,352,085 $ 2,348,574 $ — $ 2,348,574 $ — Other short-term borrowings 40,706 40,680 — 40,680 — Federal Home Loan Bank advances 745,982 744,006 — 744,006 — Subordinated borrowings 38,033 38,033 — 38,033 — Junior subordinated borrowings 5,000 3,782 — 3,782 — Derivative liabilities (222 ) (222 ) — — (222 ) Other than as discussed above, the following methods and assumptions were used by management to estimate the fair value of significant classes of financial instruments for which it is practicable to estimate that value. Cash and cash equivalents. Carrying value is assumed to represent fair value for cash and cash equivalents that have original maturities of ninety days or less. FHLB bank stock and restricted securities. Carrying value approximates fair value based on the redemption provisions of the issuers. Cash surrender value of life insurance policies. Carrying value approximates fair value. Loans, net. As of December 31, 2018 , the fair value of loans were calculated on an individual basis with consideration given to the loans' underlying characteristics, including account types, remaining terms, annual interest rates or coupons, interest types, timing of principal and interest payments, current market rates, risk ratings, credit ratings and remaining balances. A discounted cash flow model is used to estimate the fair value of the loans using assumptions for the coupon rates, remaining maturities, prepayment speeds, liquidity premiums, projected default probabilities, losses given defaults, and estimates of prevailing discount rates. As of December 31, 2017, the fair value of loans was estimated by discounting future cash flows using the current interest rates at which similar loans with similar terms would be made to borrowers of similar credit quality. Accrued interest receivable. Carrying value approximates fair value. Deposits. The fair value of demand, non-interest bearing checking, savings and money market deposits is determined as the amount payable on demand at the reporting date. The fair value of time deposits is estimated by discounting the estimated future cash flows using market rates offered for deposits of similar remaining maturities. Borrowed funds. The fair value of borrowed funds is estimated by discounting the future cash flows using market rates for similar borrowings. Such funds include all categories of debt and debentures in the table above. Subordinated borrowings. The Company utilizes a pricing service along with internal models to estimate the valuation of its junior subordinated debentures. The junior subordinated debentures re-price every ninety days. Off-balance-sheet financial instruments. Off-balance-sheet financial instruments include standby letters of credit and other financial guarantees and commitments considered immaterial to the Company’s financial statements. |
NON-INTEREST INCOME NON-INTERES
NON-INTEREST INCOME NON-INTEREST INCOME | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Non-Interest Income | NON-INTEREST INCOME Adoption of "ASC 606", Revenue from Contracts with Customers The Company completed its overall assessment of revenue streams and review of related contracts within scope of Accounting Standards Codification ("ASC") 606, including trust and investment management fees, financial services fees, interchange fees, customer deposit fees, and other customer service fees. Based on this assessment, the Company concluded that ASC 606 did not materially change the method in which the Company currently recognizes revenue for these revenue streams. The Company also completed its evaluation of certain costs related to these revenue streams to determine whether such costs should be presented as expenses or contra-revenue (i.e., gross vs. net). Based on its evaluation, the Company determined the classification of certain debit and credit card related costs should change (i.e., costs previously recorded as expense are now recorded as contra-revenue, and vice versa). These classification changes resulted in immaterial changes to both revenue and expense. These changes did not have a material effect to non-interest income or expense. Additionally, the Company reviewed deferred revenue from benefits received under various incentive contracts. The Company noted one contract was significantly impacted by the adoption, which the related financial impact and details are reflected in the tables below. The Company adopted ASC 606 on January 1, 2018, using the modified retrospective method for all contracts not completed as of the date of adoption. The reported results for 2018 reflect the application of ASC 606 guidance while the reported results for 2017 were prepared under the prior guidance of ASC 605 - Revenue Recognition. The adoption effected the Company's accounting for deferred revenue related to an upfront incentive received in connection with a co-branding agreement. The incentive, which was previously amortized over the life of the contract is now constrained by a termination penalty based on future customer transaction volume. As a result, the remaining deferred liability was re-established to its original value, which increased deferred tax assets by $57 thousand and reduced retained earnings by $184 thousand . Operating results during 2018 were not effected. Financial Statement Impact The cumulative effect of the changes made to the consolidated January 1, 2018 balance sheet for the adoption were as follows: (in thousands) Balance at December 31, 2017 Adjustments due to Topic 606 Balance at January 1, 2018 Balance Sheet Other Assets $ 24,389 $ 57 $ 24,446 Other Liabilities 28,737 241 28,978 Retained Earnings 144,977 (184 ) 144,793 Transaction Price Allocated to Future Performance Obligations ASC 606 requires the Company to disclose the aggregate amount of transaction price allocated to performance obligations that have not yet been satisfied as of January 1, 2018. The guidance provides certain practical expedients which limit this requirement and, therefore, the Company does not disclose the value of unsatisfied performance obligations for: (1) contracts with an original expected length of one year or less; (2) contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed; or (3) variable consideration allocated entirely to a wholly unsatisfied performance obligation for which consideration is allocated in accordance with paragraph 606-10-32-40. All revenue accounted for under the scope of ASC 606 meets one of these three criteria. Disaggregation of Revenue The following tables disaggregates the Company’s revenue by major business line and timing of transfer of products or services: (in thousands) Twelve Months Ended December 31, 2018 Major Products/Service Lines Trust management fees $ 11,017 Financial services fees 968 Interchange fees 4,434 Customer deposit fees 3,800 Other customer service fees 1,304 Total $ 21,523 (in thousands) Twelve Months Ended December 31, 2018 Timing of Revenue Recognition Products and services transferred at a point in time $ 9,766 Products and services transferred over time 11,757 Total $ 21,523 Trust Management Fees The trust management business generates revenue through a range of fiduciary services including trust and estate administration, wealth advisory, and investment management to individuals, businesses, not-for-profit organizations, and municipalities. Revenue from these services are generally recognized over time and is typically based on a time elapsed measure of progress. Certain fees, such as bill paying fees, distribution fees, real estate sale fees, and supplemental tax service fees, are recorded as revenue at a point in time upon the completion of the service. Financial Services Fees Bar Harbor Financial Services is a branch office of Infinex, an independent registered broker dealer offering securities and insurance products not affiliated with the Company or its subsidiaries. The Company has a revenue sharing agreement with Infinex for any financial service fee income generated. Financial services fees are recognized at a point in time upon the completion of monthly service requirements. Interchange Fees The Company earns interchange fees from transaction fees that merchants pay whenever a customer uses a debit card to make a purchase from the merchant. The fees are paid to the card-issuing bank to cover handling costs, fraud, bad debt costs and the risk involved in approving the payment. Interchange fees are generally recognized as revenue at a point in time upon the completion of a debit card transaction. Customer Deposit Fees The Customer Deposit business offers a variety of deposit accounts with a range of interest rates, fee schedules and other terms, which are designed to meet the customer's financial needs. Additional depositor related services provided to customers include ATM, bank-by-phone, internet banking, internet bill pay, mobile banking, and other cash management services which include remote deposit capture, ACH origination, and wire transfers. These customer deposit fees are generally recognized by the Company at a point in time upon the completion of the service. Other Customer Service Fees The Company has certain incentive and referral fee arrangements with independent third parties in which fees are earned for new account activity, product sales, or transaction volume generated for the respective third parties. The Company also earns a percentage of the fees generated from third party credit card plans promoted through the Bank. Revenue from these incentive and referral fee arrangements are recognized over time using the right to invoice measure of progress. Contract Balances with Customers The following table provides information about receivables, contract assets, and deferred revenues from contracts with customers. (in thousands) Balance at December 31, 2018 Balance at December 31, 2017 Other Assets $ 2,866 $ 972 Other Liabilities 4,923 342 The timing of revenue recognition, billings and cash collections results in receivables, contract assets and contract liabilities on the Consolidated Balance Sheets. For most customer contracts, fees are deducted directly from customer accounts and, therefore, there is no associated impact on the accounts receivable balance. For certain types of service contracts, the Company has an unconditional right to consideration under the service contract and an accounts receivable balance is recorded for services completed. When consideration is received, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue after control of the products or services is transferred to the customer and all revenue recognition criteria have been met. Costs to Obtain and Fulfill a Contract The Company currently expenses contract costs for processing and administrative fees for debit card transactions. The Company also expenses custody fees and transactional costs associated with securities transactions as well as third party tax preparation fees. The Company has elected the practical expedient in ASC 340-40-25-4, whereby the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets the Company otherwise would have recognized is one year or less. |
CONDENSED FINANCIAL STATEMENTS
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY | CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY The condensed balance sheets of Bar Harbor Bankshares as of December 31, 2018 and 2017 , and the condensed statements of income and cash flows for the years ended December 31, 2018, 2017 and 2016 are presented below: CONDENSED BALANCE SHEETS December 31, (in thousands) 2018 2017 Assets Cash due from Bar Harbor Bank and Trust $ 9,993 $ 2,400 Investment in subsidiaries 398,821 392,073 Premises and equipment 687 687 Other assets 3,416 939 Total assets $ 412,917 $ 396,099 Liabilities and Shareholders Equity Subordinated notes $ 37,973 $ 38,033 Accrued expenses 4,365 3,425 Shareholders equity 370,579 354,641 Total Liabilities and shareholders equity $ 412,917 $ 396,099 CONDENSED STATEMENTS OF INCOME Years Ended December 31, (in thousands) 2018 2017 2016 Income: Dividends from subsidiaries $ 23,705 $ 13,907 $ 6,473 Other 31 25 — Total income 23,736 13,932 6,473 Interest expense 2,121 1,857 — Non-interest expense 3,147 2,979 2,949 Total expense 5,268 4,836 2,949 Income before taxes and equity in undistributed income of subsidiaries 18,468 9,096 3,524 Income tax benefit (1,136 ) (1,210 ) (1,029 ) Income before equity in undistributed income of subsidiaries 19,604 10,306 4,553 Equity in undistributed income of subsidiaries 13,333 15,687 10,380 Net income $ 32,937 $ 25,993 $ 14,933 CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, (in thousands) 2018 2017 2016 Cash flows from operating activities: Net income $ 32,937 $ 25,993 $ 14,933 Adjustments to reconcile net income to net cash (used) provided by operating activities: Equity in undistributed income of subsidiaries (13,333 ) (15,687 ) (10,380 ) Other, net (1,457 ) (1,364 ) 1,336 Net cash provided by operating activities 18,147 8,942 5,889 Cash flows from investing activities: Acquisitions, net of cash paid — 1,939 — Purchase of securities (7 ) — — Other, net — — (1 ) Net cash provided by/(used in) investing activities (7 ) 1,939 (1 ) Cash flows from financing activities: Net proceeds from common stock 951 1,052 1,570 Net proceeds from reissuance of treasury stock 686 686 (497 ) Common stock cash dividends paid (12,184 ) (11,505 ) (6,577 ) Other, net — (16 ) — Net cash used in financing activities (10,547 ) (9,783 ) (5,504 ) Net change in cash and cash equivalents 7,593 1,098 384 Cash and cash equivalents at beginning of year 2,400 1,302 918 Cash and cash equivalents at end of year $ 9,993 $ 2,400 $ 1,302 |
QUARTERLY DATA (UNAUDITED)
QUARTERLY DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY DATA (UNAUDITED) | QUARTERLY DATA (UNAUDITED) Quarterly results of operations were as follows during 2018 and 2017 : 2018 (in thousands, except per share data) Fourth Quarter Third Quarter Second Quarter First Quarter Interest and dividend income $ 32,772 $ 32,184 $ 31,718 $ 30,777 Interest expense 10,508 9,715 8,726 7,619 Net interest income 22,264 22,469 22,992 23,158 Non-interest income 7,450 7,126 7,121 6,238 Provision for loan losses 572 643 770 795 Non-interest expense 20,096 17,906 18,685 18,852 Income before income taxes 9,046 11,046 10,658 9,749 Income tax expense 1,426 2,076 2,123 1,937 Net income $ 7,620 $ 8,970 $ 8,535 $ 7,812 Basic earnings per share $ 0.49 $ 0.58 $ 0.55 $ 0.51 Diluted earnings per share 0.49 0.58 0.55 0.50 Weighted average shares outstanding: Basic 15,516 15,503 15,482 15,448 Diluted 15,574 15,580 15,571 15,553 2017 (in thousands, except per share data) Fourth Quarter Third Quarter Second Quarter First Quarter Interest and dividend income $ 30,156 $ 30,063 $ 29,665 $ 26,185 Interest expense 6,660 6,585 5,856 4,813 Net interest income 23,496 23,478 23,809 21,372 Non-interest income 6,518 6,960 6,558 5,946 Provision for loan losses 597 660 736 795 Non-interest expense 14,263 17,586 20,046 20,831 Income before income taxes 15,154 12,192 9,585 5,692 Income tax expense 8,545 3,575 3,029 1,481 Net income $ 6,609 $ 8,617 $ 6,556 $ 4,211 Basic earnings per share $ 0.43 $ 0.56 $ 0.43 $ 0.29 Diluted earnings per share 0.43 0.56 0.42 0.29 Weighted average shares outstanding: Basic 15,437 15,420 15,393 14,471 Diluted 15,537 15,511 15,506 14,591 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS There were no significant subsequent events between December 31, 2018 and through the date the financial statements are available to be issued. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Basis of presentation: The consolidated financial statements (the “financial statements”) of Bar Harbor Bankshares and its subsidiaries (the “Company” or “Bar Harbor”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Bar Harbor Bankshares is a Maine Financial Institution Holding Company for the purposes of the laws of the state of Maine, and as such, is subject to the jurisdiction of the Superintendent of the Maine Bureau of Financial Institutions. These financial statements include the accounts of the Company, its wholly-owned subsidiary Bar Harbor Bank & Trust (the "Bank") and the Bank’s consolidated subsidiaries. The results of operations of companies or assets acquired are included only from the dates of acquisition. All material wholly-owned and majority-owned subsidiaries are consolidated unless U.S. GAAP requires otherwise. |
Consolidation | Consolidation: The accompanying consolidated financial statements have been prepared in accordance with GAAP. The consolidated financial statements include the accounts of Bar Harbor Bankshares and its wholly-owned subsidiary, Bar Harbor Bank & Trust. All significant inter-company balances and transactions have been eliminated in consolidation. Assets held in a fiduciary capacity are not assets of the Company, but assets of customers, and therefore, are not included in the consolidated balance sheets. |
Reclassifications | Reclassifications: Whenever necessary, amounts in the prior years’ financial statements are reclassified to conform to current presentation. The reclassifications had no impact on net income in the Company’s consolidated income statement. |
Stock Split | Stock Split: On February 21, 2017, the Company's Board of Directors declared a three-for-two stock split payable on March 21, 2017 as a large stock dividend. Shares presented in prior years have been adjusted to conform to the same basis. |
Use of estimates | Use of estimates: In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to change in the near term relate to the determination of the allowance for loan losses, other-than-temporary impairment on securities, income tax estimates, reviews of goodwill for impairment, and accounting for post-retirement plans. |
Cash and Cash Equivalents | Cash and Cash Equivalents: For purposes of reporting cash flows, cash and cash equivalents include cash and due from banks, Federal Funds sold, and other short-term investments with maturities less than 90 days. The Federal Reserve Bank requires the Bank to maintain certain reserve requirements of vault cash and/or deposits. |
Investment Securities and Other-Than-Temporary Impairments on Investment Securities | Investment Securities: All securities held at December 31, 2018 and 2017 were classified as available-for-sale (“AFS”). Available for sale securities primarily consist of mortgage-backed securities and obligations of state and political subdivisions there of, and are carried at estimated fair value. Changes in estimated fair value of AFS securities, net of applicable income taxes, are reported in accumulated other comprehensive income (loss) as a separate component of shareholders’ equity unless deemed to be other-than-temporarily impaired (“OTTI”) as discussed below. The Company does not have any securities classified as trading or held-to-maturity. Premiums and discounts on securities are amortized and accreted over the term of the securities using the interest method. Gains and losses on the sale of securities are recognized at the trade date using the specific-identification method and are shown separately in the Consolidated Statements of Income. Other-Than-Temporary Impairments on Investment Securities: The Company conducts an OTTI analysis of investment securities on a quarterly basis or more often if a potential loss-triggering event occurs. A write-down of a debt security is recorded when fair value is below amortized cost in circumstances where: (1) the Company has the intent to sell a security; (2) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the Company does not expect to recover the entire amortized cost basis of the security. If the Company intends to sell a security or if it is more likely than not that the Company will be required to sell the security before recovery, an OTTI write-down is recognized in earnings equal to the entire difference between the security’s amortized cost basis and its fair value. If the Company does not intend to sell the security or it is not more likely than not that it will be required to sell the security before recovery, the OTTI write-down is separated into an amount representing credit loss, which is recognized in earnings, and an amount related to all other factors, which is recognized in other comprehensive income. To determine the amount related to credit loss on a debt security, the Company applies a methodology similar to that used for evaluating the impairment of loans. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock: The Bank is a member of the Federal Home Loan Bank of Boston (“FHLB”). The Bank uses the FHLB for most of its wholesale funding needs. As a requirement of membership in the FHLB, the Bank must own a minimum required amount of FHLB stock, calculated periodically based primarily on its level of borrowings from the FHLB. FHLB stock is a non-marketable equity security and therefore is reported at cost, which generally equals par value. Shares held in excess of the minimum required amount are generally redeemable at par value. The Company periodically evaluates its investment in FHLB stock for impairment based on, among other things, the capital adequacy of the FHLB and its overall financial condition. Based on the capital adequacy, liquidity position and sustained profitability of the FHLB, management believes there is no impairment related to the carrying amount of the Bank’s FHLB stock as of December 31, 2018 . |
Loans Held for Sale | Loans Held for Sale: Loans originated with the intent to be sold in the secondary market are accounted for at the lower of cost or market (fair value). Fair value is primarily determined based on quoted prices for similar loans in active markets. Gains and losses on sales of residential mortgage loans (sales proceeds minus carrying value) are recorded in non-interest income. Non-refundable fees and direct loan origination costs related to residential mortgage loans held for sale are recognized in non-interest income or non-interest expense as earned or incurred. |
Loans | Loans: Loans are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, the unamortized balance of any deferred fees or costs on originated loans and the unamortized balance of any premiums or discounts on loans purchased or acquired through mergers. Interest on loans is accrued and credited to income based on the principal amount of loans outstanding. Loan origination and commitment fees and direct loan origination costs are deferred, and the net amount is amortized as an adjustment of the related loans’ yield, using the level-yield method over the estimated lives of the related loans. Acquired Loans: Loans acquired in acquisitions are initially recorded at fair value with no carryover of the related allowance for credit losses. Determining the fair value of the loans involves estimating the amount and timing of principal and interest cash flows initially expected to be collected on the loans and discounting those cash flows at an appropriate market rate of interest. For loans that meet the criteria stipulated in ASC 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality,” the Company recognizes the accretable yield, which is defined as the excess of all cash flows expected at acquisition over the initial fair value of the loan, as interest income on a level-yield basis over the expected remaining life of the loan. The excess of the loan’s contractually required payments over the cash flows expected to be collected is the non-accretable difference. The non-accretable difference is not recognized as an adjustment of yield, a loss accrual, or a valuation allowance. The Company evaluates quarterly whether the timing and cash to be collected are reasonably expected. Subsequent significant increases in cash flows the Company expects to collect will first reduce any previously recognized valuation allowance and then be reflected prospectively as an increase to the level yield. Subsequent decreases in expected cash flows may result in the loan being considered impaired. Interest income is not recognized to the extent that the net investment in the loan would increase to an amount greater than the estimated payoff amount. For loans that do not meet the ASC 310-30 criteria, the Company accretes interest income based on the contractually required cash flows. The Company subjects loans that do not meet the ASC 310-30 criteria to ASC 450, “Contingencies” by collectively evaluating these loans for an allowance for loan loss. Acquired loans that met the criteria for non-accrual of interest prior to the acquisition are considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if the Company can reasonably estimate the timing and amount of the expected cash flows on such loans and if the Company expects to fully collect the new carrying value of the loans. As such, the Company may no longer consider the loan to be non-accrual or nonperforming and may accrue interest on these loans, including the impact of any accretable yield. |
Non-performing loans | Non-performing loans: Residential real estate and home equity loans are generally placed on non-accrual status when reaching 90 days past due, or in process of foreclosure, or sooner if considered appropriate by management. Consumer loans are generally placed on non-accrual when reaching 90 days or more past due, or sooner if considered appropriate by management. Secured consumer loans are written down to net realizable value and unsecured consumer loans are charged-off upon reaching 120 days past due. Commercial real estate loans and commercial business loans that are 90 days or more past due are generally placed on non-accrual status, unless secured by sufficient cash or other assets immediately convertible to cash, and the loan is in the process of collection. Commercial real estate and commercial business loans may be placed on non-accrual status prior to the 90 days delinquency date if considered appropriate by management. When a loan has been placed on non-accrual status, previously accrued and uncollected interest is reversed against interest on the loan. The interest on non-accrual loans is accounted for using the cash-basis or cost-recovery method depending on corresponding credit risk, until qualifying for return to accrual status. A loan can be returned to accrual status when collectability of principal is reasonably assured and the loan has performed for a period of time, generally six months. |
Impaired loans | Impaired loans: A loan is considered impaired when, based on current information and events, it is probable that the Company will not be able to collect all amounts due from the borrower in accordance with the contractual terms of the loan, including scheduled interest payments. Factors considered by management in determining impairment include payment status and collateral value. In considering loans for evaluation of impairment, management generally excludes smaller balance, homogeneous loans; residential mortgage loans, home equity loans, and all consumer loans, unless such loans were restructured in a troubled debt restructuring. These loans are collectively evaluated for risk of loss. When a loan has been identified as being impaired, the amount of impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the estimated fair value of the collateral, less any selling costs, if the loan is collateral-dependent. If the measurement of the impaired loan is less than the recorded investment in the loan (including accrued interest, net of deferred loan fees or costs, and unamortized premiums or discounts), impairment is recognized by establishing or adjusting an existing allocation of the allowance for loan losses, or by recording a partial charge-off of the loan to its fair value. Interest payments made on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case, interest income may be accrued or recognized on a cash basis. |
Loans Modified in a Troubled Debt Restructuring | Loans Modified in a Troubled Debt Restructuring: Loans are considered to have been modified in a troubled debt restructuring when, due to a borrower’s financial difficulties, the Company makes certain concessions to the borrower that it would not otherwise consider. Modifications may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Generally, a non-accrual loan that has been modified in a troubled debt restructuring remains on non-accrual status for a period of at least 6 months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains on non-accrual status. |
Allowance for Loan Losses | Allowance for Loan Losses: The allowance for loan losses (the “allowance”) is a significant accounting estimate used in the preparation of the Company’s consolidated financial statements. The allowance is available to absorb losses inherent in the current loan portfolio and is maintained at a level that, in management’s judgment, is appropriate for the amount of risk inherent in the loan portfolio, given past and present conditions. The allowance is increased by provisions charged to operating expense and by recoveries on loans previously charged off, and is decreased by loans charged off as uncollectible. The allowance is calculated in accordance with ASC 310 - Receivables and ASC 450 - Contingencies. Under the guidance of ASC 310, specific allowances are established in cases where management has identified significant conditions or circumstances related to individual loans where the probability of a loss may be incurred. Credit loss estimates for loans without specific allowances are determined under the guidance of ASC 450, which includes portfolio segmentation based on similar risk characteristics, determination of estimated historical loss rates, calculation of a time-based loss emergence and confirmation periods, and adjustments for certain qualitative risk factors. Arriving at an appropriate level of allowance for loan losses involves a high degree of judgment. The determination of the adequacy of the allowance and provisioning for estimated losses is evaluated regularly based on review of loans, with particular emphasis on non-performing and other loans that management believes warrant special consideration. While management uses available information to recognize losses on loans, changing economic conditions and the economic prospects of the borrowers may necessitate future additions or reductions to the allowance. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance, which also may necessitate future additions or reductions to the allowance, based on information available to them at the time of their examination. Refer to Note 4 - Allowance for Loan Losses , for further information, including the Company’s loan loss estimation methodology. |
Reserve for Unfunded Commitments | Reserve for Unfunded Commitments: The unfunded reserve is a component of other liabilities and represents the estimate for probable credit losses inherent in unfunded commitments to extend credit. Unfunded commitments to extend credit include banker’s acceptances, and standby and commercial letters of credit. The process used to determine the unfunded reserve is consistent with the process for determining the allowance, as adjusted for estimated funding probabilities or loan and lease equivalency factors. The level of the unfunded reserve is adjusted by recording on an expense or recovery in other noninterest expense. Reserve for unfunded commitments are classified in other liabilities on the Company’s Consolidated Balance Sheet. |
Premises and Equipment | Premises and Equipment: Premises and equipment and related improvements are stated at cost less accumulated depreciation. Depreciation is computed on the straight-line method over the lesser of the lease term or estimated useful lives of related assets; generally 25 to 39 years for premises and three to seven years for furniture and equipment. Software costs are stated at cost less accumulated depreciation within other assets on the Consolidated Statements of Condition. Amortization expense is calculated using the straight-line method over the estimated useful lives of the related assets. |
Goodwill and Identifiable Intangible Assets | Goodwill and Identifiable Intangible Assets: In connection with acquisitions, the Company generally records as assets on its consolidated financial statements both goodwill and identifiable intangible assets, such as core deposit intangibles. Goodwill represents the excess of the purchase price over the fair value of net assets acquired in accordance with the purchase method of accounting for business combinations. Goodwill is not amortized but, instead, is subject to impairment tests on at least an annual basis, or more frequently, if an event occurs or circumstances change that reduce the fair value of a reporting unit below its carrying amount. The impairment testing process is conducted by assigning assets and goodwill to each reporting unit. Currently, the Company’s goodwill is evaluated at the entity level as there is only one reporting unit. The Company first assesses certain qualitative factors to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying value. If it is more likely than not that the fair value of the reporting unit is less than the carrying value, then the fair value of each reporting unit is compared to the recorded book value “step one.” If the fair value of the reporting unit exceeds its carrying value, goodwill is not considered impaired and “step two” is not considered necessary. If the carrying value of a reporting unit exceeds its fair value, the impairment test continues (“step two”) by comparing the carrying value of the reporting unit’s goodwill to the implied fair value of goodwill. The implied fair value is computed by adjusting all assets and liabilities of the reporting unit to current fair value with the offset adjustment to goodwill. The adjusted goodwill balance is the implied fair value of the goodwill. An impairment charge is recognized if the carrying fair value of goodwill exceeds the implied fair value of goodwill. Identifiable intangible assets, included in other assets on the consolidated balance sheet, consist of core deposit intangibles amortized over their estimated useful lives on a straight-line method, which approximates the economic benefits to the Company. These assets are reviewed for impairment at least annually, or whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The determination of which intangible assets have finite lives is subjective, as is the determination of the amortization period for such intangible assets. Any negative changes in the estimates used by the Company to determine the carrying value of its goodwill and identifiable intangible assets, or which otherwise adversely affect their value or estimated lives, would adversely affect the Company’s consolidated results of operations. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance: Bank-owned life insurance (“BOLI”) represents life insurance on the lives of certain current and retired employees who had 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 in excess of the cash value, are recorded in other non-interest income, and are not subject to income taxes. The cash surrender value is included in other assets on the Company’s consolidated balance sheet. |
Other Real Estate Owned | Other Real Estate Owned: Other real estate owned consists of properties acquired through foreclosure proceedings or acceptance of a deed-in-lieu of foreclosure. These properties are recorded at fair value less estimated costs to sell the property. If the recorded investment in the loan exceeds the property’s fair value at the time of acquisition, a charge-off is recorded against the allowance. If the fair value of the property at the time of acquisition exceeds the carrying amount of the loan, the excess is recorded either as a recovery to the allowance if a charge-off had previously been recorded, or as a gain on initial transfer in other non-interest income. Subsequent decreases in the property’s fair value and operating expenses of the property are recognized through charges to other non-interest expense. The fair value of the property acquired is based on third-party appraisals, broker price opinions, recent sales activity, or a combination thereof, subject to management judgment. |
Capitalized Servicing Rights | Capitalized Servicing Right s : Capitalized servicing rights are recognized as assets when mortgage loans are sold and the rights to service those loans are retained. The Company’s capitalized servicing rights are accounted for under the amortization method and are initially recorded at fair value. Fair values are established by using a discounted cash flow model to calculate the present value of estimated future net servicing income. Changes in the fair value of capitalized servicing rights are primarily due to changes in valuation inputs, assumptions, and the collection and realization of expected cash flows. However, these capitalized servicing rights are amortized in proportion to and over the period of estimated net servicing income, which includes prepayment assumptions. An impairment analysis is prepared on a quarterly basis by estimating the fair value of the capitalized servicing rights and comparing that value to the carrying amount. A valuation allowance is established when the carrying amount of these capitalized servicing rights exceeds fair value. |
Senior and Subordinated Borrowing Policy | Senior and Subordinated Borrowings: The Company's borrowings include retail and wholesale repurchase agreements, FHLB overnight and short-term borrowings, Federal Funds purchased, line of credit advances and subordinated notes. The Company is required to post collateral for certain borrowings, for which it, generally, posts loans and/or investment securities as collateral. |
Derivative Financial Instruments | Derivative Financial Instruments: The Company recognizes all derivative instruments on the consolidated balance sheet at fair value. On the date the derivative instrument is entered into, the Company designates whether the derivative is part of a hedging relationship (i.e., cash flow or fair value hedge). The Company formally documents relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking hedge transactions. The Company also assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting the changes in cash flows or fair values of hedged items. Changes in the fair value of derivative instruments that are highly effective and qualify as cash flow hedge are recorded in other comprehensive income/(loss). Any ineffective portion is recorded in earnings. For fair value hedges that are highly effective, the gain or loss on the derivative and the loss or gain on the hedged item attributable to the hedged risk are both recognized in earnings, with the differences (if any) representing hedge ineffectiveness. The Company discontinues hedge accounting when it is determined that the derivative is no longer highly effective in offsetting changes of the hedged risk on the hedged item, or management determines that the designation of the derivative as a hedging instrument is no longer appropriate. |
Off-Balance Sheet Financial Instruments | Off-Balance Sheet Financial Instruments: In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit, unused or unadvanced loan funds and letters of credit. Such financial instruments are recorded in the consolidated financial statements when they are funded or related fees are incurred or received. |
Stock Based Compensation | Stock Based Compensation: The Company has equity award plans that include stock option, restricted stock and performance stock, which are described more fully in Note 14 - Stock Based Compensation Plans o f the Consolidated Financial Statements. The Company expenses the grant date fair value of equity awards granted. The expense is recognized over the vesting periods of the grants. The Company uses its treasury shares for issuing shares upon option exercises, restricted stock and performance stock vesting. |
Accounting for Retirement Benefit Plans | Accounting for Retirement Benefit Plans: The Company has non-qualified supplemental executive retirement agreements with certain retired officers. The agreements provide supplemental retirement benefits payable in installments over a period of years upon retirement or death. The Company recognized the net present value of payments associated with the agreements over the service periods of the participating officers. Interest costs continue to be recognized on the benefit obligations. The Company also has a supplemental executive retirement agreement with a certain current executive officer. This agreement provides a stream of future payments in accordance with individually defined vesting schedules upon retirement, termination, or in the event that the participating executive leaves the Company following a change of control event. The Company recognizes the net present value of payments associated with these agreements over the service periods of the participating executive officers. Upon retirement, interest costs will continue to be recognized on the benefit obligation. The Company recognizes the over-funded or under-funded status of post-retirement benefit plans as a liability on the balance sheet in other liabilities and recognizes changes in that funded status through other comprehensive income/(loss). Gains and losses, prior service costs and credits, and any remaining transition amounts that have not yet been recognized through net periodic benefit costs are recognized in accumulated other comprehensive income/(loss), net of tax effects, until they are amortized as a component of net periodic cost. The measurement date, which is the date at which the benefit obligation and plan assets are measured, is the Company's fiscal year end. |
Income Taxes | Income Taxes: The Company uses the asset and liability method of accounting for income taxes. Under this method, 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. If current available information indicates that it is more likely than not that deferred tax assets will not be realized, a valuation allowance is established. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. |
Earnings Per Share | Earnings Per Share: Basic earnings per share excludes dilution and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company, such as the Company’s dilutive stock options. |
Revenue Recognition | Revenue Recognition: The Company recognizes revenue in accordance with ASC 606, "Revenue from Contracts with Customers." ASC 606 requires the Company to follow a five step process: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the Company satisfies a performance obligation. Revenue recognition under ASC 606 depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the goods or service. See Note 16 - Non-Interest Income of the Company's Consolidated Financial Statements for additional information on revenue recognition. |
Segment Reporting | Segment Reporting: An operating segment is defined as a component of a business for which separate financial information is available that is evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and evaluate performance. The Company has determined that its operations are solely in the community banking industry and include traditional community banking services, including lending activities, acceptance of demand, savings and time deposits, business services, investment management, trust and third-party brokerage services. These products and services have similar distribution methods, types of customers and regulatory responsibilities. Accordingly, segment information is not presented in the Consolidated Financial Statements. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The following table provides a brief description of accounting standards that could have a material impact to the Company’s consolidated financial statements upon adoption: Standard Description Required Date of Adoption Effect on financial statements Standards Adopted in 2018 ASU 2014-09, Revenue from Contracts with Customers This ASU supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry topics of the Codification. The core principle of the ASU is an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU may be adopted either retrospectively or on a modified retrospective basis. January 1, 2018 The Company adopted this ASU as of January 1, 2018, upon completion of an analysis to identify all revenue streams within the scope of this accounting guidance. After reviewing the related contracts as prescribed by the five steps within this ASU, one contract resulted in recognition of a $241 thousand liability with a $184 thousand impact to retained earnings net of tax. The remaining changes had no material impact on the consolidated financial statements. See Note 11 for more detail and transitional disclosures. ASU 2015-14, Deferral of the Effective Date ASU 2016-08, Principal versus Agent Considerations ASU 2016-10, Identifying Performance Obligations and Licensing ASU 2016-12, Narrow-Scope Improvements and Practical Expedience ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers ASU 2016-01, Recognition and Measurement of Financial Assets and Liabilities This ASU amends ASC Topic 825, Financial Instruments-Overall, and addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Among other minor amendments applicable to the Company, the main provisions require investments in equity securities to be measured at fair value with changes in fair value recognized through net income unless they qualify for a practicability exception (excludes investments accounted for under the equity method of accounting or those that result in consolidation of the investee). Except for disclosure requirements that will be adopted prospectively, the ASU must be adopted on a modified retrospective basis. January 1, 2018 The Company adopted this ASU as of January 1, 2018, although it did not have any equity securities that would be in scope of this ASU. However, the Company is subject to the exit pricing notion required in fair value disclosures and after calculating the fair value, the Company had no material impact to its consolidated financial statements. ASU-2018-03, Technical Corrections and Improvements to Financial Instruments ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments This ASU amends Topic 230, Statement of Cash Flows, and provides clarification with respect to classification within the statement of cash flows where current guidance is unclear or silent. The ASU should be adopted retrospectively. If it is impractical to apply the guidance retrospectively for an issue, the amendments related to the issue would be applied prospectively. January 1, 2018 The Company adopted this ASU as of January 1, 2018, although it did not have a material impact on the Company's consolidated financial statements. Standard Description Required Date of Adoption Effect on financial statements Standards Adopted in 2018 (continued) ASU 2017-07, Compensation- Retirement Benefits This ASU amends Topic 715, Retirement Benefits, and provides more prescriptive guidance around the presentation of net period pension and post-retirement benefit cost in the income statement. The amendment requires the service cost component be disaggregated from other components of net periodic benefit cost in the income statement. January 1, 2018 The Company adopted this ASU as of January 1, 2018, although it did not have a material impact on the Company's consolidated financial statements. Early adoption is permitted. ASU 2017-09, Stock Compensation: Scope of Modification Accounting This ASU amends Topic 718, Compensation- Stock Compensation, and clarifies when modification accounting should be applied to changes in terms or conditions of share-based payment awards. The amendments narrow the scope of modification accounting by clarifying that modification accounting should be applied to awards if the change affects the fair value, vesting conditions, or classification of the award. The amendments do not impact current disclosure requirements for modifications, regardless of whether modification accounting is required under the new guidance. January 1, 2018 The Company adopted this ASU as of January 1, 2018, although it did not have a material impact on the Company's consolidated financial statements. ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income The ASU amends Topic 220, Income Statement-Reporting Comprehensive Income, and is intended to help organizations reclassify certain stranded income tax effects in accumulated other comprehensive income resulting from the recently enacted Tax Reform. The guidance allows entities to reclassify stranded tax effects in accumulated other comprehensive income to retained earnings. January 1, 2019 The Company adopted this ASU as of March 31, 2018. The effect of the reclassification resulted in an increase to retained earnings and a decrease to accumulated other comprehensive income of $980 thousand with zero net effect on total stockholders' equity. ASU 2018-05, Income Taxes (Topic 740) SEC Amendments Early adoption is permitted. ASU 2018-06, Codification Improvements to Topic 942, Financial Services - Depository and Lending Circular 202, issued on July 2, 1985, was rescinded by the Office of the Comptroller of the Currency. The circular limited the net deferred tax debits that could be carried on the Company's balance sheet for regulatory purposes to the amount that would be coverable by the net operating loss carrybacks. The language is no longer relevant and has been removed from the guidance. May 2018 The Company adopted this ASU as of January 1, 2018, although it did not have a material impact on the Company's consolidated financial statements. Standard Description Required Date of Adoption Effect on financial statements Standards Not Yet Adopted ASU 2016-02, Leases This ASU creates ASU Topic 842, Leases, and supersedes Topic 840, Leases. The new guidance requires lessees to record a right-of-use asset and a corresponding liability equal to the present value of future rental payments on their balance sheets for all leases with a term greater than one year. There are not significant changes to lessor accounting; however, there are certain improvements made to align lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. This guidance expands both quantitative and qualitative required disclosures. This ASU is required to be adopted on a modified retrospective basis and allows for practical expedients and elections in conjunction with implementation. The Company may elect some of the expedients upon the adoption date, which may be applied prospectively or retrospectively. January 1, 2019 The Company plans to elect the practical expedients, allowing for existing leases to be accounted for consistent with current guidance, with the exception of balance sheet recognition for lessees. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. The Company will use the effective date as the initial date of application. At adoption the Company expects to recognize a right-of-use asset and corresponding lease liability of $9.0 million. This estimate is based, primarily, on the present value of unpaid future minimum lease payments. Additionally, that amount is impacted by assumptions around renewals and/or extensions, and the interest rate used to discount those future lease obligations. Due to the limited size of the Company's leasing portfolio, many other items related to this standard don't apply, or have an immaterial impact on the Company's consolidated financial statements. ASU 2018-11 Practical Expedients to Topic 842, Leases ASU 2018-02 Scope Improvements for Lessors ASU 2016-13, Measurement of Credit Losses on Financial Instruments This ASU amends Topic 326, Financial Instruments- Credit Losses to replace the current incurred loss accounting model with a current expected credit loss approach (CECL) for financial instruments measured at amortized cost and other commitments to extend credit. The amendments require entities to consider all available relevant information when estimating current expected credit losses, including details about past events, current conditions, and reasonable and supportable forecasts. The resulting allowance for credit losses is to reflect the portion of the amortized cost basis that the entity does not expect to collect. The amendments also eliminate the current accounting model for purchased credit impaired loans and debt securities. Additional quantitative and qualitative disclosures are required upon adoption. January 1, 2020 Adoption of this ASU is expected to primarily change how the Company estimates credit losses with the application of the expected credit loss model. In addition, the Company expects the ASU to change the presentation of credit losses for AFS debt securities through an allowance method rather than as a direct write-off. The Company is in the process of evaluating loan loss estimation models to comply with the guidance under this ASU, which may result in a higher credit loss estimate. ASU 2018-19, Codification Improvements to ASU 2016-13 While the CECL model does not apply to available for sale debt securities, the ASU does require entities to record an allowance when recognizing credit losses for available for sale securities, rather than reduce the amortized cost of the securities by direct write-offs. The ASU should be adopted on a modified retrospective basis. Entities that have loans accounted for under ASC 310-30 at the time of adoption should prospectively apply the guidance in this amendment for purchase credit deteriorated assets. Early adoption is permitted in 2019 Standard Description Required Date of Adoption Effect on financial statements Standards Not Yet Adopted (continued) ASU 2017-04, Simplifying the Test for Goodwill Impairment This ASU amends Topic 350, Intangibles-Goodwill and Other, and eliminates Step 2 from the goodwill impairment test. January 1, 2020 Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. Early adoption is permitted. ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities This ASU amends ASC 815, Derivatives and Hedging to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity's risk management activities by better aligning the entity's financial reporting for hedging relationships with those risk management activities and (2) reduce the complexity of and simplify the application of hedge accounting by preparers. January 1, 2019 Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. ASU 2018-16, Inclusion of Overnight Financing Rate or Overnight Swap Rate as a Benchmark for Hedge Accounting ASU 2018-07, Share Based Payment Accounting This ASU expands the scope of Topic 718, Compensation- Stock Compensation to include share-based payments issued to non-employees for goods or services. Consequently, the accounting for share-based payments to non-employees and employees will be substantially aligned. The ASU supersedes Subtopic 505-50, Equity-Based Payments to non-employees. January 1, 2019 Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements as the Company does not participate in these types of arrangements in the normal course of business, except for board director compensation. ASU 2018-13 Changes to Disclosure Requirements Fair Value Measurement, Topic 820 This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. January 1, 2020 The Company is currently evaluating this guidance to determine any impact on the Company's consolidated financial statements. Early adoption is permitted. ASU 2018-14 Compensation- Disclosure Requirements for Defined Pension Plans Topic 715-20 This ASU makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other post-retirement benefit plans. January 1, 2021 The Company is currently evaluating this guidance to determine any impact on the Company's consolidated financial statements. Early adoption is permitted. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table provides a brief description of accounting standards that could have a material impact to the Company’s consolidated financial statements upon adoption: Standard Description Required Date of Adoption Effect on financial statements Standards Adopted in 2018 ASU 2014-09, Revenue from Contracts with Customers This ASU supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry topics of the Codification. The core principle of the ASU is an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU may be adopted either retrospectively or on a modified retrospective basis. January 1, 2018 The Company adopted this ASU as of January 1, 2018, upon completion of an analysis to identify all revenue streams within the scope of this accounting guidance. After reviewing the related contracts as prescribed by the five steps within this ASU, one contract resulted in recognition of a $241 thousand liability with a $184 thousand impact to retained earnings net of tax. The remaining changes had no material impact on the consolidated financial statements. See Note 11 for more detail and transitional disclosures. ASU 2015-14, Deferral of the Effective Date ASU 2016-08, Principal versus Agent Considerations ASU 2016-10, Identifying Performance Obligations and Licensing ASU 2016-12, Narrow-Scope Improvements and Practical Expedience ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers ASU 2016-01, Recognition and Measurement of Financial Assets and Liabilities This ASU amends ASC Topic 825, Financial Instruments-Overall, and addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Among other minor amendments applicable to the Company, the main provisions require investments in equity securities to be measured at fair value with changes in fair value recognized through net income unless they qualify for a practicability exception (excludes investments accounted for under the equity method of accounting or those that result in consolidation of the investee). Except for disclosure requirements that will be adopted prospectively, the ASU must be adopted on a modified retrospective basis. January 1, 2018 The Company adopted this ASU as of January 1, 2018, although it did not have any equity securities that would be in scope of this ASU. However, the Company is subject to the exit pricing notion required in fair value disclosures and after calculating the fair value, the Company had no material impact to its consolidated financial statements. ASU-2018-03, Technical Corrections and Improvements to Financial Instruments ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments This ASU amends Topic 230, Statement of Cash Flows, and provides clarification with respect to classification within the statement of cash flows where current guidance is unclear or silent. The ASU should be adopted retrospectively. If it is impractical to apply the guidance retrospectively for an issue, the amendments related to the issue would be applied prospectively. January 1, 2018 The Company adopted this ASU as of January 1, 2018, although it did not have a material impact on the Company's consolidated financial statements. Standard Description Required Date of Adoption Effect on financial statements Standards Adopted in 2018 (continued) ASU 2017-07, Compensation- Retirement Benefits This ASU amends Topic 715, Retirement Benefits, and provides more prescriptive guidance around the presentation of net period pension and post-retirement benefit cost in the income statement. The amendment requires the service cost component be disaggregated from other components of net periodic benefit cost in the income statement. January 1, 2018 The Company adopted this ASU as of January 1, 2018, although it did not have a material impact on the Company's consolidated financial statements. Early adoption is permitted. ASU 2017-09, Stock Compensation: Scope of Modification Accounting This ASU amends Topic 718, Compensation- Stock Compensation, and clarifies when modification accounting should be applied to changes in terms or conditions of share-based payment awards. The amendments narrow the scope of modification accounting by clarifying that modification accounting should be applied to awards if the change affects the fair value, vesting conditions, or classification of the award. The amendments do not impact current disclosure requirements for modifications, regardless of whether modification accounting is required under the new guidance. January 1, 2018 The Company adopted this ASU as of January 1, 2018, although it did not have a material impact on the Company's consolidated financial statements. ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income The ASU amends Topic 220, Income Statement-Reporting Comprehensive Income, and is intended to help organizations reclassify certain stranded income tax effects in accumulated other comprehensive income resulting from the recently enacted Tax Reform. The guidance allows entities to reclassify stranded tax effects in accumulated other comprehensive income to retained earnings. January 1, 2019 The Company adopted this ASU as of March 31, 2018. The effect of the reclassification resulted in an increase to retained earnings and a decrease to accumulated other comprehensive income of $980 thousand with zero net effect on total stockholders' equity. ASU 2018-05, Income Taxes (Topic 740) SEC Amendments Early adoption is permitted. ASU 2018-06, Codification Improvements to Topic 942, Financial Services - Depository and Lending Circular 202, issued on July 2, 1985, was rescinded by the Office of the Comptroller of the Currency. The circular limited the net deferred tax debits that could be carried on the Company's balance sheet for regulatory purposes to the amount that would be coverable by the net operating loss carrybacks. The language is no longer relevant and has been removed from the guidance. May 2018 The Company adopted this ASU as of January 1, 2018, although it did not have a material impact on the Company's consolidated financial statements. Standard Description Required Date of Adoption Effect on financial statements Standards Not Yet Adopted ASU 2016-02, Leases This ASU creates ASU Topic 842, Leases, and supersedes Topic 840, Leases. The new guidance requires lessees to record a right-of-use asset and a corresponding liability equal to the present value of future rental payments on their balance sheets for all leases with a term greater than one year. There are not significant changes to lessor accounting; however, there are certain improvements made to align lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. This guidance expands both quantitative and qualitative required disclosures. This ASU is required to be adopted on a modified retrospective basis and allows for practical expedients and elections in conjunction with implementation. The Company may elect some of the expedients upon the adoption date, which may be applied prospectively or retrospectively. January 1, 2019 The Company plans to elect the practical expedients, allowing for existing leases to be accounted for consistent with current guidance, with the exception of balance sheet recognition for lessees. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. The Company will use the effective date as the initial date of application. At adoption the Company expects to recognize a right-of-use asset and corresponding lease liability of $9.0 million. This estimate is based, primarily, on the present value of unpaid future minimum lease payments. Additionally, that amount is impacted by assumptions around renewals and/or extensions, and the interest rate used to discount those future lease obligations. Due to the limited size of the Company's leasing portfolio, many other items related to this standard don't apply, or have an immaterial impact on the Company's consolidated financial statements. ASU 2018-11 Practical Expedients to Topic 842, Leases ASU 2018-02 Scope Improvements for Lessors ASU 2016-13, Measurement of Credit Losses on Financial Instruments This ASU amends Topic 326, Financial Instruments- Credit Losses to replace the current incurred loss accounting model with a current expected credit loss approach (CECL) for financial instruments measured at amortized cost and other commitments to extend credit. The amendments require entities to consider all available relevant information when estimating current expected credit losses, including details about past events, current conditions, and reasonable and supportable forecasts. The resulting allowance for credit losses is to reflect the portion of the amortized cost basis that the entity does not expect to collect. The amendments also eliminate the current accounting model for purchased credit impaired loans and debt securities. Additional quantitative and qualitative disclosures are required upon adoption. January 1, 2020 Adoption of this ASU is expected to primarily change how the Company estimates credit losses with the application of the expected credit loss model. In addition, the Company expects the ASU to change the presentation of credit losses for AFS debt securities through an allowance method rather than as a direct write-off. The Company is in the process of evaluating loan loss estimation models to comply with the guidance under this ASU, which may result in a higher credit loss estimate. ASU 2018-19, Codification Improvements to ASU 2016-13 While the CECL model does not apply to available for sale debt securities, the ASU does require entities to record an allowance when recognizing credit losses for available for sale securities, rather than reduce the amortized cost of the securities by direct write-offs. The ASU should be adopted on a modified retrospective basis. Entities that have loans accounted for under ASC 310-30 at the time of adoption should prospectively apply the guidance in this amendment for purchase credit deteriorated assets. Early adoption is permitted in 2019 Standard Description Required Date of Adoption Effect on financial statements Standards Not Yet Adopted (continued) ASU 2017-04, Simplifying the Test for Goodwill Impairment This ASU amends Topic 350, Intangibles-Goodwill and Other, and eliminates Step 2 from the goodwill impairment test. January 1, 2020 Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. Early adoption is permitted. ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities This ASU amends ASC 815, Derivatives and Hedging to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity's risk management activities by better aligning the entity's financial reporting for hedging relationships with those risk management activities and (2) reduce the complexity of and simplify the application of hedge accounting by preparers. January 1, 2019 Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. ASU 2018-16, Inclusion of Overnight Financing Rate or Overnight Swap Rate as a Benchmark for Hedge Accounting ASU 2018-07, Share Based Payment Accounting This ASU expands the scope of Topic 718, Compensation- Stock Compensation to include share-based payments issued to non-employees for goods or services. Consequently, the accounting for share-based payments to non-employees and employees will be substantially aligned. The ASU supersedes Subtopic 505-50, Equity-Based Payments to non-employees. January 1, 2019 Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements as the Company does not participate in these types of arrangements in the normal course of business, except for board director compensation. ASU 2018-13 Changes to Disclosure Requirements Fair Value Measurement, Topic 820 This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. January 1, 2020 The Company is currently evaluating this guidance to determine any impact on the Company's consolidated financial statements. Early adoption is permitted. ASU 2018-14 Compensation- Disclosure Requirements for Defined Pension Plans Topic 715-20 This ASU makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other post-retirement benefit plans. January 1, 2021 The Company is currently evaluating this guidance to determine any impact on the Company's consolidated financial statements. Early adoption is permitted. Financial Statement Impact The cumulative effect of the changes made to the consolidated January 1, 2018 balance sheet for the adoption were as follows: (in thousands) Balance at December 31, 2017 Adjustments due to Topic 606 Balance at January 1, 2018 Balance Sheet Other Assets $ 24,389 $ 57 $ 24,446 Other Liabilities 28,737 241 28,978 Retained Earnings 144,977 (184 ) 144,793 |
SECURITIES AVAILABLE FOR SALE (
SECURITIES AVAILABLE FOR SALE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of securities available for sale | The following is a summary of securities available for sale: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2018 Securities available for sale Debt securities: Mortgage-backed securities: US Government-sponsored enterprises $ 413,492 $ 904 $ 9,444 $ 404,952 US Government agency 111,938 509 1,935 110,512 Private label 20,353 113 84 20,382 Obligations of states and political subdivisions thereof 133,260 1,081 2,076 132,265 Corporate bonds 58,098 264 636 57,726 Total securities available for sale $ 737,141 $ 2,871 $ 14,175 $ 725,837 December 31, 2017 Securities available for sale Debt securities: Obligations of US Government sponsored enterprises $ 6,967 $ 5 $ — $ 6,972 Mortgage-backed securities: US Government-sponsored enterprises 447,081 1,738 5,816 443,003 US Government agency 96,357 413 1,174 95,596 Private label 529 150 5 674 Obligations of states and political subdivisions thereof 138,522 2,407 729 140,200 Corporate bonds 30,527 323 53 30,797 Total securities available for sale $ 719,983 $ 5,036 $ 7,777 $ 717,242 |
Schedule of amortized cost and estimated fair value of available for sale (AFS), segregated by contractual maturity | The amortized cost and estimated fair value of available for sale (“AFS”) securities segregated by contractual maturity at December 31, 2018 are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Mortgage-backed securities are shown in total, as their maturities are highly variable. Available for sale (in thousands) Amortized Cost Fair Value Within 1 year $ 425 $ 427 Over 1 year to 5 years 23,312 23,311 Over 5 years to 10 years 62,111 62,055 Over 10 years 105,510 104,198 Total bonds and obligations 191,358 189,991 Mortgage-backed securities 545,783 535,846 Total securities available for sale $ 737,141 $ 725,837 |
Summary of proceeds from the sale of securities and realized gains and losses | The following table summarizes proceeds from the sale of AFS securities and realized gains and losses: (in thousands) Proceeds from Sale of Securities Available for Sale Realized Gains Realized Losses Net 2018 $ 29,107 $ — $ 924 $ (924 ) 2017 1,599 19 — 19 2016 66,583 4,498 — 4,498 |
Schedule of securities with unrealized losses, segregated by the duration of their continuous unrealized loss positions | Securities with unrealized losses, segregated by the duration of their continuous unrealized loss positions, are summarized as follows: Less Than Twelve Months Over Twelve Months Total (in thousands) Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Fair December 31, 2018 Securities available for sale Debt securities: Mortgage-backed securities: US Government-sponsored enterprises $ 155 $ 19,367 $ 9,289 $ 297,569 $ 9,444 $ 316,936 US Government agency 16 2,570 1,919 68,266 1,935 70,836 Private label 79 10,393 5 47 84 10,440 Obligations of states and political subdivisions thereof 43 6,784 2,033 47,930 2,076 54,714 Corporate bonds 224 11,759 412 14,460 636 26,219 Total securities available for sale $ 517 $ 50,873 $ 13,658 $ 428,272 $ 14,175 $ 479,145 December 31, 2017 Securities available for sale Debt securities: Mortgage-backed securities: US Government-sponsored enterprises $ 1,895 $ 189,486 $ 3,921 $ 117,156 $ 5,816 $ 306,642 US Government agency 559 45,221 615 30,155 1,174 75,376 Private label — 8 5 130 5 138 Obligations of states and political subdivisions thereof 58 8,298 671 27,727 729 36,025 Corporate bonds 53 8,943 — — 53 8,943 Total securities available for sale $ 2,565 $ 251,956 $ 5,212 $ 175,168 $ 7,777 $ 427,124 |
Summary of securities pledged as collateral for certain deposits and borrowings arrangements | A summary of securities pledged as collateral for certain deposits and borrowing arrangements as of the years ended December 31, 2018 and December 31, 2017 is as follows: December 31, 2018 December 31, 2017 (in thousands) Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value Securities pledged for deposits $ 128,949 $ 126,649 $ 195,921 $ 194,681 Securities pledged for repurchase agreements 55,656 54,189 98,407 98,050 Securities pledged for other borrowings (1) 270,252 265,334 213,379 212,089 Total securities pledged $ 454,857 $ 446,172 $ 507,707 $ 504,820 ______________________________ (1) The Bank pledged securities as collateral for certain borrowing arrangements with the Federal Home Loan Bank of Boston and Federal Reserve Bank of Boston |
Schedule of other than temporary impairment losses | The following table presents the remaining amount of historical credit losses on debt securities and changes reflected in the statement of income: Twelve Months Ended December 31, (in thousands) 2018 2017 2016 Estimated credit losses as of prior year-end, $ 1,697 $ 1,697 $ 3,180 Reductions for securities paid off during the period — — 1,483 Estimated credit losses at end of the period $ 1,697 $ 1,697 $ 1,697 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Loans | The following is a summary of total loans as of December 31, 2018 and December 31, 2017 : December 31, 2018 December 31, 2017 (in thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Commercial real estate: Construction and land development $ 23,754 $ 2,890 $ 26,644 $ 28,892 $ 16,781 $ 45,673 Other commercial real estate 555,980 244,075 800,055 505,119 275,954 781,073 Total commercial real estate 579,734 246,965 826,699 534,011 292,735 826,746 Commercial and industrial: Other Commercial 234,757 52,470 287,227 198,051 68,069 266,120 Agricultural 22,317 — 22,317 27,588 — 27,588 Tax exempt 56,588 38,738 95,326 42,365 43,350 85,715 Total commercial and industrial 313,662 91,208 404,870 268,004 111,419 379,423 Total commercial loans 893,396 338,173 1,231,569 802,015 404,154 1,206,169 Residential real estate: Residential mortgages 670,189 474,509 1,144,698 591,411 564,271 1,155,682 Total residential real estate 670,189 474,509 1,144,698 591,411 564,271 1,155,682 Consumer: Home equity 57,898 45,291 103,189 51,376 62,217 113,593 Other consumer 9,414 1,357 10,771 7,828 2,341 10,169 Total consumer 67,312 46,648 113,960 59,204 64,558 123,762 Total loans $ 1,630,897 $ 859,330 $ 2,490,227 $ 1,452,630 $ 1,032,983 $ 2,485,613 Total unamortized net premiums included in the year-end total for business activity loans were the following at December 31, 2018 and December 31, 2017 : (in thousands) 2018 2017 Unamortized net loan origination costs $ 3,064 $ 2,445 Unamortized net premium on purchased loans (127 ) (123 ) Total unamortized net costs and premiums $ 2,937 $ 2,322 Loan to related parties at December 31, 2018 and December 31, 2017 are summarized below. (in thousands) 2018 2017 Beginning balance $ 10,487 $ 10,620 Changes in composition (1) — 249 New Loans — 1,124 Less: repayments (2,092 ) (1,506 ) Ending balance $ 8,395 $ 10,487 ______________________________________ (1) Adjustments to reflect changes in status of directors and officers for each year presented. |
Schedule of Activity in the Accretable Yield for the Acquired Loan Portfolio that Falls Under the Review of ASC 310-30, Accounting for Certain Loans or Debt Securities Acquired in a Transfer | The following table summarizes activity in the accretable yield for the acquired loan portfolio that falls under the purview of ASC 310-30, Accounting for Certain Loans or Debt Securities Acquired in a Transfer: Twelve Months Ended December 31, (in thousands) 2018 2017 Balance at beginning of period $ 3,509 $ — Acquisitions — 3,398 Reclassification from nonaccretable difference for loans with improved cash flows 2,240 1,925 Changes in expected cash flows that do not affect the nonaccretable difference — — Reclassification to TDR (30 ) — Accretion (1,342 ) (1,814 ) Balance at end of period $ 4,377 $ 3,509 |
Summary of Past Due Loans | The following table summarizes activity in the accretable yield for the acquired loan portfolio that falls under the purview of ASC 310-30, Accounting for Certain Loans or Debt Securities Acquired in a Transfer: Twelve Months Ended December 31, (in thousands) 2018 2017 Balance at beginning of period $ 3,509 $ — Acquisitions — 3,398 Reclassification from nonaccretable difference for loans with improved cash flows 2,240 1,925 Changes in expected cash flows that do not affect the nonaccretable difference — — Reclassification to TDR (30 ) — Accretion (1,342 ) (1,814 ) Balance at end of period $ 4,377 $ 3,509 The following is a summary of past due loans at December 31, 2018 and December 31, 2017 : Business Activities Loans (in thousands) 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans Past Due > 90 days and Accruing December 31, 2018 Commercial real estate: Construction and land development $ — $ — $ — $ — $ 23,754 $ 23,754 $ — Other commercial real estate 1,146 — 6,725 7,871 548,109 555,980 — Total commercial real estate 1,146 — 6,725 7,871 571,863 579,734 — Commercial and industrial: Other Commercial 395 60 402 857 233,900 234,757 50 Agricultural 65 6 25 96 22,221 22,317 — Tax exempt — — — — 56,588 56,588 — Total commercial and industrial 460 66 427 953 312,709 313,662 50 Total commercial loans 1,606 66 7,152 8,824 884,572 893,396 50 Residential real estate: Residential mortgages 3,565 641 1,309 5,515 664,674 670,189 — Total residential real estate 3,565 641 1,309 5,515 664,674 670,189 — Consumer: Home equity 72 — — 72 57,826 57,898 — Other consumer 17 — 11 28 9,386 9,414 — Total consumer 89 — 11 100 67,212 67,312 — Total loans $ 5,260 $ 707 $ 8,472 $ 14,439 $ 1,616,458 $ 1,630,897 $ 50 Acquired Loans (in thousands) 30-59 Days 60-89 Days 90 Days or Greater Past Due Total Past Due Acquired Credit Impaired Total Loans Past Due > 90 days and Accruing December 31, 2018 Commercial real estate: Construction and land development $ — $ — $ — $ — $ 164 $ 2,890 $ — Other commercial real estate 631 99 211 941 6,143 244,075 — Total commercial real estate 631 99 211 941 6,307 246,965 — Commercial and industrial: Other commercial 149 26 494 669 679 52,470 — Agricultural — — — — — — — Tax exempt — — — — — 38,738 — Total commercial and industrial 149 26 494 669 679 91,208 — Total commercial loans 780 125 705 1,610 6,986 338,173 — Residential real estate: Residential mortgages 3,419 254 1,792 5,465 3,095 474,509 — Total residential real estate 3,419 254 1,792 5,465 3,095 474,509 — Consumer: Home equity 198 — 66 264 22 45,291 7 Other consumer 17 — — 17 3 1,357 189 Total consumer 215 — 66 281 25 46,648 196 Total loans $ 4,414 $ 379 $ 2,563 $ 7,356 $ 10,106 $ 859,330 $ 196 Business Activities Loans (in thousands) 30-59 Days 60-89 Days 90 Days or Greater Past Due Total Past Due Current Total Loans Past Due > 90 days and Accruing December 31, 2017 Commercial real estate: Construction and land development $ — $ — $ 637 $ 637 $ 28,255 $ 28,892 $ — Other commercial real estate 965 1,659 5,065 7,689 497,430 505,119 119 Total commercial real estate 965 1,659 5,702 8,326 525,685 534,011 119 Commercial and industrial: Other commercial 186 329 702 1,217 196,834 198,051 21 Agricultural 42 159 198 399 27,189 27,588 155 Tax exempt — — — — 42,365 42,365 — Total commercial and industrial 228 488 900 1,616 266,388 268,004 176 Total commercial loans 1,193 2,147 6,602 9,942 792,073 802,015 295 Residential real estate: Residential mortgages 3,096 711 975 4,782 586,629 591,411 — Total residential real estate 3,096 711 975 4,782 586,629 591,411 — Consumer: Home equity 515 — 199 714 50,662 51,376 199 Other consumer 36 24 — 60 7,768 7,828 — Total consumer 551 24 199 774 58,430 59,204 199 Total loans $ 4,840 $ 2,882 $ 7,776 $ 15,498 $ 1,437,132 $ 1,452,630 $ 494 Acquired Loans (in thousands) 30-59 Days 60-89 Days 90 Days or Greater Past Due Total Past Due Acquired Credit Impaired Total Loans Past Due > 90 days and Accruing December 31, 2017 Commercial real estate: Construction and land development $ 124 $ 9 $ — $ 133 $ 258 $ 16,781 $ — Other commercial real estate 278 — 411 689 8,397 275,954 — Total commercial real estate 402 9 411 822 8,655 292,735 — Commercial and industrial: Other commercial 125 14 49 188 632 68,069 — Agricultural — — — — — — — Tax exempt — — — — — 43,350 — Total commercial and industrial 125 14 49 188 632 111,419 — Total commercial loans 527 23 460 1,010 9,287 404,154 — Residential real estate: Residential mortgages 752 388 614 1,754 3,259 564,271 — Total residential real estate 752 388 614 1,754 3,259 564,271 — Consumer: Home equity 125 117 80 322 38 62,217 16 Other consumer 2 — — 2 3 2,341 — Total consumer 127 117 80 324 41 64,558 16 Total loans $ 1,406 $ 528 $ 1,154 $ 3,088 $ 12,587 $ 1,032,983 $ 16 |
Summary of Information Pertaining to Non-Accrual Loans | Non-Accrual Loans The following is summary information pertaining to non-accrual loans at December 31, 2018 and December 31, 2017 : December 31, 2018 December 31, 2017 (in thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Commercial real estate: Construction and land development $ 1 $ — $ 1 $ 637 $ — $ 637 Other commercial real estate 7,873 282 8,155 7,146 560 7,706 Total commercial real estate 7,874 282 8,156 7,783 560 8,343 Commercial and industrial: Other commercial 1,423 643 2,066 703 463 1,166 Agricultural 265 — 265 43 — 43 Tax exempt — — — — — — Total commercial and industrial 1,688 643 2,331 746 463 1,209 Total commercial loans 9,562 925 10,487 8,529 1,023 9,552 Residential real estate: Residential mortgages 4,213 2,997 7,210 3,408 858 4,266 Total residential real estate 4,213 2,997 7,210 3,408 858 4,266 Consumer: Home equity 246 201 447 130 217 347 Other consumer 90 1 91 95 58 153 Total consumer 336 202 538 225 275 500 Total loans $ 14,111 $ 4,124 $ 18,235 $ 12,162 $ 2,156 $ 14,318 |
Schedule of Loans Evaluated for Impairment | Loans evaluated for impairment by portfolio segment as of December 31, 2018 and December 31, 2017 were as follows: Business Activities Loans (in thousands) Commercial real estate Commercial and industrial Residential real estate Consumer Total December 31, 2018 Individually evaluated for impairment $ 9,835 $ 1,445 $ 2,562 $ 13 $ 13,855 Collectively evaluated 569,899 312,217 667,627 67,299 1,617,042 Total $ 579,734 $ 313,662 $ 670,189 $ 67,312 $ 1,630,897 Acquired Loans (in thousands) Commercial real estate Commercial and industrial Residential real estate Consumer Total December 31, 2018 Individually evaluated for impairment $ 188 $ 426 $ 744 $ — $ 1,358 Purchased credit impaired 6,307 679 3,095 25 10,106 Collectively evaluated 240,470 90,103 470,670 46,623 847,866 Total $ 246,965 $ 91,208 $ 474,509 $ 46,648 $ 859,330 Business Activities Loans (in thousands) Commercial real estate Commercial and industrial Residential real estate Consumer Total December 31, 2017 Individually evaluated for impairment $ 7,604 $ 626 $ 1,404 $ 13 $ 9,647 Collectively evaluated 526,407 267,378 590,007 59,191 1,442,983 Total $ 534,011 $ 268,004 $ 591,411 $ 59,204 $ 1,452,630 Acquired Loans (in thousands) Commercial real estate Commercial and industrial Residential real estate Consumer Total December 31, 2017 Individually evaluated for impairment $ 241 $ 571 $ 271 $ 63 $ 1,146 Purchased credit impaired 8,655 632 3,259 41 12,587 Collectively evaluated 283,839 110,216 560,741 64,454 1,019,250 Total $ 292,735 $ 111,419 $ 564,271 $ 64,558 $ 1,032,983 |
Summary of Impaired Loans | The following is a summary of impaired loans at December 31, 2018 and December 31, 2017 : Business Activities Loans December 31, 2018 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance: Construction and land development $ — $ — $ — Other commercial real estate 8,209 8,301 — Other commercial 649 669 — Agricultural — — — Tax exempt — — — Residential real estate 1,671 1,709 — Home equity — — — Other consumer — — — With an allowance recorded: Construction and land development $ 1 $ 1 $ 1 Other commercial real estate 1,625 1,660 421 Other commercial 796 855 78 Agricultural — — — Tax exempt — — — Residential real estate 891 916 111 Home equity 13 13 — Other consumer — — — Total Commercial real estate $ 9,835 $ 9,962 $ 422 Commercial and industrial 1,445 1,524 78 Residential real estate 2,562 2,625 111 Consumer 13 13 — Total impaired loans $ 13,855 $ 14,124 $ 611 Acquired Loans December 31, 2018 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance: Construction and land development $ — $ — $ — Other commercial real estate 188 187 — Other commercial 426 510 — Agricultural — — — Tax exempt — — — Residential real estate 375 524 — Home equity — — — Other consumer — — — With an allowance recorded: Construction and land development $ — Other commercial real estate — — — Other commercial — — — Agricultural — — — Tax exempt — — — Residential real estate 369 379 41 Home equity — — — Other consumer — — — Total Commercial real estate $ 188 $ 187 $ — Commercial and industrial 426 510 — Residential real estate 744 903 41 Consumer — — — Total impaired loans $ 1,358 $ 1,600 $ 41 Business Activities Loans December 31, 2017 (in thousands) Recorded Investment Unpaid Principal Related Allowance With no related allowance: Construction and land development $ — $ — $ — Other commercial real estate 5,896 5,903 — Other commercial 218 217 — Agricultural — — — Tax exempt — — — Residential real estate 1,247 1,260 — Home equity 13 13 — Other consumer — — — With an allowance recorded: Construction and land development $ 637 $ 2,563 $ 59 Other commercial real estate 1,071 1,132 388 Other commercial 408 408 3 Agricultural — — — Tax exempt — — — Residential real estate 157 157 9 Home equity — — — Other consumer — — — Total Commercial real estate $ 7,604 $ 9,598 $ 447 Commercial and industrial 626 625 3 Residential real estate 1,404 1,417 9 Consumer 13 13 — Total impaired loans $ 9,647 $ 11,653 $ 459 Acquired Loans December 31, 2017 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance: Construction and land development $ — $ — $ — Other commercial real estate 241 352 — Other commercial 571 584 — Agricultural — — — Tax exempt — — — Residential real estate 271 278 — Home equity 63 156 — Other consumer — — — With an allowance recorded: Construction and land development $ — Other commercial real estate — — — Other commercial — — Agricultural — — — Tax exempt — — — Residential real estate — — — Home equity — — — Other consumer — — — Total Commercial real estate $ 241 $ 352 $ — Commercial and industrial 571 584 — Residential real estate 271 278 — Consumer 63 156 — Total impaired loans $ 1,146 $ 1,370 $ — |
Summary of the Average Recorded Investment and Interest Income Recognized on Impaired Loans | The following is a summary of the average recorded investment and interest income recognized on impaired loans as of December 31, 2018 and December 31, 2017 : Business Activities Loan Twelve Months Ended December 31, 2018 Twelve Months Ended December 31, 2017 (in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest With no related allowance: Construction and land development $ — $ — $ — $ — Other commercial real estate 6,878 77 2,541 66 Other commercial 634 9 382 6 Agricultural — — 113 1 Tax exempt — — — — Residential real estate 1,693 39 2,174 39 Home equity — — 27 — Other consumer — — 53 3 With an allowance recorded: Construction and land development $ 1 $ — $ 637 $ — Other commercial real estate 1,140 — 735 — Other commercial 735 — 105 1 Agricultural — — — — Tax exempt — — — — Residential real estate 826 9 157 5 Home equity 13 1 — — Other consumer — — — — Total Commercial real estate $ 8,019 $ 77 $ 3,913 $ 66 Commercial and industrial 1,369 9 600 8 Residential real estate 2,519 48 2,331 44 Consumer 13 1 80 3 Total impaired loans $ 11,920 $ 135 $ 6,924 $ 121 Acquired Loans Twelve Months Ended December 31, 2018 Twelve Months Ended December 31, 2017 (in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest With no related allowance: Construction and land development $ — $ — $ — $ — Other commercial real estate 112 1 136 — Other commercial 441 1 264 1 Agricultural — — — — Tax exempt — — — — Residential real estate 442 — 140 1 Home equity — — 58 — Other consumer — — — — With an allowance recorded: Construction and land development $ — $ — $ — $ — Other commercial real estate — — — — Other commercial — — — — Agricultural — — — — Tax exempt — — — — Residential real estate 218 3 — — Home equity — — — — Other consumer — — — — Total Commercial real estate $ 112 $ 1 $ 136 $ — Commercial and industrial 441 1 264 1 Residential real estate 660 3 140 1 Consumer — — 58 — Total impaired loans $ 1,213 $ 5 $ 598 $ 2 |
Schedule of Recorded Investment and Number of Modifications for TDRs Identified During the Period | The following tables include the recorded investment and number of modifications identified during the twelve months ended December 31, 2018 , 2017 and 2016, respectively. The table includes the recorded investment in the loans prior to a modification and also the recorded investment in the loans after the loans were restructured. Modifications may include adjustments to interest rates, payment amounts, extensions of maturity, court ordered concessions or other actions intended to minimize economic loss and avoid foreclosure or repossession of collateral. Twelve Months Ended December 31, 2018 (in thousands, except modifications) Number of Modifications Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Specific Reserve Troubled Debt Restructurings Construction and land development 1 $ 1 $ 1 $ 1 Other commercial real estate 9 1,896 1,564 153 Other commercial 7 556 486 55 Agricultural 1 167 — — Tax exempt — — — — Residential mortgages 19 3,348 2,752 145 Home equity 1 100 100 — Other consumer 3 13 11 — Total 41 $ 6,081 $ 4,914 $ 354 Twelve Months Ended December 31, 2017 (in thousands, except modifications) Number of Modifications Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Specific Reserve Troubled Debt Restructurings Construction and land development — $ — $ — $ — Other commercial real estate 6 388 222 — Other commercial 6 563 545 — Agricultural 1 19 18 — Tax exempt — — — — Residential mortgages 3 692 670 — Home equity 1 13 13 — Other consumer 1 38 36 — Total 18 $ 1,713 $ 1,504 $ — Twelve Months Ended December 31, 2016 (in thousands, except modifications) Number of Modifications Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Specific Reserve Troubled Debt Restructurings Construction and land development — $ — $ — $ — Other commercial real estate 6 1,459 1,354 — Other commercial 2 38 48 — Agricultural 3 29 44 — Tax exempt — — — — Residential mortgages — — — — Home equity — — — — Other consumer 2 11 11 9 Total 13 $ 1,537 $ 1,457 $ 9 The following table summarizes the types of loan concessions made for the periods presented: 2018 2017 2016 (in thousands, except modifications) Number of Modifications Post-Modification Outstanding Recorded Investment Number of Modifications Post-Modification Outstanding Recorded Investment Number of Modifications Post-Modification Outstanding Recorded Investment Interest rate and maturity concession 1 $ 16 6 $ 725 6 $ 440 Amortization and maturity concession 1 286 6 490 — — Amortization concession — — 1 94 4 981 Amortization, interest rate and maturity concession — — 1 36 — — Amortization and interest rate concession — — — — 1 9 Forbearance 3 271 — — — — Forbearance and interest only payments 6 121 — — — — Forbearance and interest rate concession 1 49 — — — — Forbearance and maturity concession 20 2,030 — — — — Maturity concession 2 440 — — — — Restructure without concession 5 1,419 — — — — Court ordered — — — — 1 1 Other 2 282 4 159 1 26 Total 41 4,914 18 1,504 13 1,457 |
Servicing Rights Activity | Servicing rights activity during 2018 and 2017 was as follows: At or for the Twelve Months Ended December 31, (in thousands) 2018 2017 Balance at beginning of year $ 3,232 $ 5 Acquired — 3,417 Additions 99 134 Amortization (245 ) (324 ) Balance at end of year $ 3,086 $ 3,232 |
LOAN LOSS ALLOWANCE (Tables)
LOAN LOSS ALLOWANCE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Activity in the Allowance for Loan Losses | Activity in the allowance for loan losses for the twelve months ended December 31, 2018 , 2017 and 2016 was as follows: Business Activities Loans At or for the Twelve Months Ended December 31, 2018 (in thousands) Commercial real estate Commercial and industrial Residential real estate Consumer Total Balance at beginning of period $ 6,037 $ 2,373 $ 3,357 $ 386 $ 12,153 Charged-off loans (417 ) (111 ) (225 ) (629 ) (1,382 ) Recoveries on charged-off loans 275 76 166 18 535 Provision/(releases) for loan losses 916 42 684 633 2,275 Balance at end of period $ 6,811 $ 2,380 $ 3,982 $ 408 $ 13,581 Individually evaluated for impairment 422 78 111 — 611 Collectively evaluated 6,389 2,302 3,871 408 12,970 Total $ 6,811 $ 2,380 $ 3,982 $ 408 $ 13,581 Acquired Loans At or for the Twelve Months Ended December 31, 2018 (in thousands) Commercial real estate Commercial and industrial Residential real estate Consumer Total Balance at beginning of period $ 97 $ 16 $ 59 $ — $ 172 Charged-off loans (136 ) (166 ) (158 ) (65 ) (525 ) Recoveries on charged-off loans 43 7 — 83 133 Provision/(releases) for loan losses 169 178 176 (18 ) 505 Balance at end of period $ 173 $ 35 $ 77 $ — $ 285 Individually evaluated for impairment — — 41 — 41 Collectively evaluated 173 35 36 — 244 Total $ 173 $ 35 $ 77 $ — $ 285 Business Activities Loans At or for the Twelve Months Ended December 31, 2017 (in thousands) Commercial real estate Commercial and industrial Residential real estate Consumer Total Balance at beginning of period $ 5,145 $ 1,952 $ 2,721 $ 601 $ 10,419 Charged-off loans (124 ) (189 ) (226 ) (162 ) (701 ) Recoveries on charged-off loans 49 11 65 18 143 Provision/(releases) for loan losses 967 599 797 (71 ) 2,292 Balance at end of period $ 6,037 $ 2,373 $ 3,357 $ 386 $ 12,153 Individually evaluated for impairment 447 3 9 — 459 Collectively evaluated 5,590 2,370 3,348 386 11,694 Total $ 6,037 $ 2,373 $ 3,357 $ 386 $ 12,153 Acquired Loans At or for the Twelve Months Ended December 31, 2017 (in thousands) Commercial real estate Commercial and industrial Residential real estate Consumer Total Balance at beginning of period $ — $ — $ — $ — $ — Charged-off loans (151 ) (18 ) (29 ) (127 ) (325 ) Recoveries on charged-off loans 1 — — — 1 Provision/(releases) for loan losses 247 34 88 127 496 Balance at end of period $ 97 $ 16 $ 59 $ — $ 172 Individually evaluated for impairment — — — — — Collectively evaluated 97 16 59 — 172 Total $ 97 $ 16 $ 59 $ — $ 172 Business Activities Loans At or for the Twelve Months Ended December 31, 2016 (in thousands) Commercial real estate Commercial and industrial Residential real estate Consumer Total Balance at beginning of period $ 4,430 $ 1,590 $ 2,747 $ 672 $ 9,439 Charged-off loans (133 ) (90 ) (141 ) (47 ) (411 ) Recoveries on charged-off loans 40 289 44 39 412 Provision/(releases) for loan losses 808 163 71 (63 ) 979 Balance at end of period $ 5,145 $ 1,952 $ 2,721 $ 601 $ 10,419 Individually evaluated for impairment 193 173 49 9 424 Collectively evaluated 4,952 1,779 2,672 592 9,995 Total $ 5,145 $ 1,952 $ 2,721 $ 601 $ 10,419 |
Schedule of Loans by Risk Rating | The following tables present the Company’s commercial loans by risk rating at December 31, 2018 and December 31, 2017 : Business Activities Loans Commercial Real Estate Credit Risk Profile by Creditworthiness Category Construction and land development Commercial real estate other Total commercial real estate (in thousands) December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Grade: Pass $ 23,680 $ 28,180 $ 532,386 $ 483,711 $ 556,066 $ 511,891 Special mention 73 73 8,319 5,706 8,392 5,779 Substandard — 639 13,914 15,702 13,914 16,341 Doubtful 1 — 1,361 — 1,362 — Total $ 23,754 $ 28,892 $ 555,980 $ 505,119 $ 579,734 $ 534,011 Commercial and Industrial Credit Risk Profile by Creditworthiness Category Commercial other Agricultural and other loans to farmers Tax exempt loans Total commercial and industrial (in thousands) December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Grade: Pass $ 226,353 $ 194,147 $ 21,680 $ 27,046 $ 56,588 $ 42,208 $ 304,621 $ 263,401 Special mention 6,730 1,933 215 63 — 157 6,945 2,153 Substandard 924 1,971 422 479 — — 1,346 2,450 Doubtful 750 — — — — — 750 — Total $ 234,757 $ 198,051 $ 22,317 $ 27,588 $ 56,588 $ 42,365 $ 313,662 $ 268,004 Residential Real Estate and Consumer Loans Credit Risk Profile Based on Payment Activity Residential real estate Home equity Other consumer Total residential real estate and consumer (in thousands) Dec 31, 2018 Dec 31, 2017 Dec 31, 2018 Dec 31, 2017 Dec 31, 2018 Dec 31, 2017 Dec 31, 2018 Dec 31, 2017 Performing $ 665,976 $ 588,003 $ 57,652 $ 51,246 $ 9,324 $ 7,733 $ 732,952 $ 646,982 Non-performing 4,213 3,408 246 130 90 95 4,549 3,633 Total $ 670,189 $ 591,411 $ 57,898 $ 51,376 $ 9,414 $ 7,828 $ 737,501 $ 650,615 Acquired Loans Commercial Real Estate Credit Risk Profile by Creditworthiness Category Commercial construction and land development Commercial real estate other Total commercial real estate (in thousands) December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Grade: Pass $ 2,626 $ 16,523 $ 236,393 $ 266,477 $ 239,019 $ 283,000 Special mention — 235 1,574 2,440 1,574 2,675 Substandard 264 23 6,009 7,037 6,273 7,060 Doubtful — — 99 — 99 — Total $ 2,890 $ 16,781 $ 244,075 $ 275,954 $ 246,965 $ 292,735 Commercial and Industrial Credit Risk Profile by Creditworthiness Category Commercial other Agricultural and other loans to farmers Tax exempt loans Total commercial and industrial (in thousands) December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Grade: Pass $ 46,120 $ 60,300 $ — $ — $ 38,738 $ 43,350 $ 84,858 $ 103,650 Special mention 4,825 5,753 — — — — 4,825 5,753 Substandard 1,222 2,016 — — — — 1,222 2,016 Doubtful 303 — — — — — 303 — Total $ 52,470 $ 68,069 $ — $ — $ 38,738 $ 43,350 $ 91,208 $ 111,419 Residential Real Estate and Consumer Loans Credit Risk Profile Based on Payment Activity Residential real estate Home equity Other consumer Total residential real estate and consumer (in thousands) Dec 31, 2018 Dec 31, 2017 Dec 31, 2018 Dec 31, 2017 Dec 31, 2018 Dec 31, 2017 Dec 31, 2018 Dec 31, 2017 Performing $ 470,497 $ 562,516 $ 45,090 $ 62,000 $ 1,356 $ 2,283 $ 516,943 $ 626,799 Non-performing 4,012 1,755 201 217 1 58 4,214 2,030 Total $ 474,509 $ 564,271 $ 45,291 $ 62,217 $ 1,357 $ 2,341 $ 521,157 $ 628,829 |
Summary of Information About Total Loans Rated Special Mention or Lower | The following table summarizes information about total classified and criticized loans loans as of December 31, 2018 and December 31, 2017 . December 31, 2018 December 31, 2017 (in thousands) Business Activities Loans Acquired Loans Total Business Activities Loans Acquired Loans Total Non-accrual $ 14,111 $ 4,124 $ 18,235 $ 12,140 $ 2,156 $ 14,296 Substandard accruing 7,810 7,987 15,797 10,284 7,833 18,117 Doubtful accruing — — — — — — Total classified 21,921 12,111 34,032 22,424 9,989 32,413 Special mention 15,337 6,399 21,736 7,932 8,428 16,360 Total Criticized $ 37,258 $ 18,510 $ 55,768 $ 30,356 $ 18,417 $ 48,773 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Year-end premises and equipment at December 31, 2018 and December 31, 2017 are summarized as follows: (in thousands, except years) 2018 2017 Estimated Useful Life Land $ 4,837 $ 4,849 N/A Buildings and improvements 50,933 48,952 5 -39 years Furniture and equipment 9,098 6,972 3 - 7 years Premises and equipment, gross 64,868 60,773 Accumulated depreciation (16,064 ) (13,065 ) Premises and equipment, net $ 48,804 $ 47,708 |
GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The activity impacting goodwill in 2018 and 2017 is as follows: (in thousands) 2018 2017 Balance at beginning of year $ 100,085 $ 4,935 Acquisition — 95,150 Balance at end of year $ 100,085 $ 100,085 |
Schedule of Finite-Lived Intangible Assets | The components of other intangible assets in 2018 and 2017 are as follows: 2018 (in thousands) Gross Intangible Assets Accumulated Amortization Net Intangible Assets Core deposit intangible (non-maturity deposits) $ 8,586 $ (1,878 ) $ 6,708 Customer list and other intangibles 919 (168 ) 751 Total $ 9,505 $ (2,046 ) $ 7,459 2017 (in thousands) Gross Intangible Assets Accumulated Amortization Net Intangible Assets Core deposit intangible (non-maturity deposits) $ 8,585 $ (1,136 ) $ 7,449 Customer list and other intangibles 1,016 (82 ) 934 Total $ 9,601 $ (1,218 ) $ 8,383 |
Schedule of Future Amortization Expense | The estimated aggregate future amortization expense for other intangible assets remaining at year end 2018 is as follows: (in thousands) Other Intangible Assets 2019 827 2020 827 2021 742 2022 734 2023 734 and thereafter 3,595 Total other intangible assets 7,459 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Summary of Time Deposits | A summary of time deposits at December 31, 2018 and December 31, 2017 were as follows: (in thousands) December 31, 2018 December 31, 2017 Time less than $100,000 $ 622,478 $ 579,856 Time $100,000 through $250,000 193,535 167,145 Time $250,000 or more 116,780 119,345 Total time deposits $ 932,793 $ 866,346 |
Time Deposit Maturities | At December 31, 2018 and December 31, 2017 , the scheduled maturities by year for time deposits were as follows: (in thousands) December 31, 2018 December 31, 2017 Within 1 year $ 505,313 $ 406,295 Over 1 year to 2 years 258,176 305,895 Over 2 years to 3 years 123,337 115,878 Over 3 years to 4 years 14,494 24,459 Over 4 years to 5 years 31,353 13,685 Over 5 years 120 134 Total $ 932,793 $ 866,346 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowed Funds | Borrowed funds at December 31, 2018 and December 31, 2017 are summarized, as follows: December 31, 2018 December 31, 2017 (in thousands, except ratios) Amount Weighted Average Rate Amount Weighted Average Rate Short-term borrowings Advances from the FHLB $ 611,683 2.47 % $ 608,792 1.49 % Other borrowings 36,211 1.09 40,706 0.59 Total short-term borrowings 647,894 2.39 649,498 1.43 Long-term borrowings Advances from the FHLB 32,929 1.86 137,190 1.72 Subordinated borrowings 37,973 5.58 38,033 4.88 Junior subordinated borrowings 5,000 5.96 5,000 4.89 Total long-term borrowings 75,902 3.99 180,223 2.47 Total $ 723,796 2.56 % $ 829,721 1.66 % |
Summary of Maturities of FHLBB Advances | A summary of maturities of FHLB advances as of December 31, 2018 is as follows: December 31, 2018 (in thousands, except rates) Amount Weighted Fixed rate advances maturing: 2019 $ 611,683 2.47 % 2020 29,956 1.87 2021 1,648 2.34 2022 — — 2023 1,000 — 2024 and thereafter 325 3.97 Total FHLB advances $ 644,612 2.44 % |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Pension Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | The following tables set forth information about the plan for the year ended December 31, 2018 and 2017 : (in thousands) 2018 2017 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 9,020 $ 8,642 Service cost — — Interest cost 315 334 Actuarial (gain) loss (771 ) 662 Benefits paid (291 ) (269 ) Settlements (264 ) (349 ) Projected benefit obligation at end of year 8,009 9,020 Change in fair value of plan assets: Fair value of plan assets at beginning of year 11,026 10,622 Expected return on plan assets (481 ) 1,022 Contributions by employer — — Benefits paid (291 ) (269 ) Settlements (264 ) (349 ) Fair value of plan assets at end of year 9,990 11,026 Overfunded status $ (1,981 ) $ (2,006 ) Amounts recognized in consolidated balance sheet: Other assets $ 1,981 $ 2,006 |
Schedule of Net Benefit Costs | Net periodic pension cost is comprised of the following for the year ended December 31, 2018 and 2017 : (in thousands) 2018 2017 Interest cost $ 315 $ 334 Expected return on plan assets (706 ) (706 ) Settlement Charge — 13 Net periodic pension benefit cost (credit) $ (391 ) $ (359 ) (in thousands) 2018 2017 Net actuarial loss (gain) $ 415 $ 346 Settlement charge — (13 ) Net period pension benefit cost (credit) (391 ) (359 ) Total recognized in net periodic benefit cost (credit) and other comprehensive loss (income) $ 24 $ (26 ) |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | Change in plan assets and benefit obligations recognized in accumulated other comprehensive income as of December 31, 2018 and 2017 are as follows: (in thousands) 2018 2017 Net actuarial loss (gain) $ 415 $ 346 Settlement charge — (13 ) Prior service cost (credit) 333 — Total accumulated other comprehensive loss (pre-tax) $ 748 $ 333 |
Schedule of Assumptions Used | The principal actuarial assumptions used at December 31, 2018 and 2017 were as follows: 2018 2017 Projected benefit obligation Discount rate 4.23 % 3.56 % Net periodic pension cost Discount rate 3.56 % 4.09 % Long-term rate of return on plan assets 6.50 7.00 |
Schedule of Allocation of Plan Assets | The fair value of the Plan's assets by category and level within fair value hierarchy are as follows at December 31, 2018 and 2017 : 2018 (in thousands) Total Level 1 Level 2 Asset Category Equity mutual funds: Large-cap $ 1,730 $ 1,730 $ — Mid-cap 477 477 — Small-cap 469 469 — International 845 845 Fixed income funds: Fixed-income - core plus 3,945 3,945 — Intermediate duration 1,321 1,321 — Common stock 506 506 — Common/collective trusts - large-cap 469 — 469 Cash equivalents - money market 228 228 — Total $ 9,990 $ 9,521 $ 469 2017 (in thousands) Total Level 1 Level 2 Asset Category Equity mutual funds: Large-cap $ 2,143 $ 2,143 $ — Mid-cap 612 612 — Small-cap 613 613 — International 1,150 1,150 Fixed income funds: Fixed-income - core plus 3,896 3,896 — Intermediate duration 1,316 1,316 — Common stock 610 610 — Common/collective trusts - large-cap 555 — 555 Cash equivalents - money market 130 130 — Total $ 11,025 $ 10,470 $ 555 |
Schedule of Expected Benefit Payments | Estimated benefit payments under the Company's pension plan over the next 10 years at December 31, 2018 are as follows: Year Payments in Thousands 2019 $ 357 2020 383 2021 382 2022 400 2023 396 2024-2028 2,239 |
Non-qualified Supplemental Executive Retirement Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | The following table sets forth changes in benefit obligation, changes in plan assets, and the funded status of the plan as of and for the years ended December 31, 2018 and December 31, 2017 : (in thousands) 2018 2017 Change in benefit obligation: Projected benefit obligation at beginning of year $ 3,451 $ 3,670 Service cost — — Interest cost 102 116 Actuarial loss/(gain) (142 ) 16 Benefits paid (378 ) (351 ) Projected benefit obligation at end of year $ 3,033 $ 3,451 Change in fair value of plan assets: Fair value of plan assets at beginning of year $ — $ — Expected return on plan assets — — Contributions by employer 378 351 Benefits paid (378 ) (351 ) Fair value of plan assets at end of year $ — $ — Underfunded status $ 3,033 $ 3,451 Amounts recognized in consolidated balance sheet Other liabilities $ 3,033 $ 3,451 |
Schedule of Net Benefit Costs | Net periodic benefit cost is comprised of the following for the years ended December 31, 2018 and 2017 : (in thousands) 2018 2017 Interest cost $ 102 $ 116 Expected return on plan assets — — Amortization of unrecognized actuarial loss 29 21 Net periodic benefit cost $ 131 $ 137 (in thousands) 2018 2017 Net actuarial loss (gain) $ (142 ) $ 16 Amortization of unrecognized actuarial loss (29 ) (21 ) Total recognized in net periodic benefit cost and other comprehensive loss $ (171 ) $ (5 ) |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | Change in plan assets and benefit obligations recognized in accumulated other comprehensive income in 2018 and 2017 are as follows: (in thousands) 2018 2017 Accumulated other comprehensive income at beginning of the year (pre-tax) $ 585 $ 590 Actuarial loss (gain) (142 ) 16 Amortization of actuarial loss (29 ) (21 ) Accumulated other comprehensive income at end of year (pre-tax) $ 414 $ 585 |
Schedule of Assumptions Used | The principal actuarial assumptions used at December 31, 2018 and December 31, 2017 were as follows: 2018 2017 Discount rate beginning of year 3.13 % 3.31 % Discount rate end of year 3.83 3.13 |
Schedule of Expected Benefit Payments | The Company expects to contribute the following amounts to fund benefit payments under the supplemental executive retirement plans: (in thousands) Payments 2019 $ 378 2020 293 2021 260 2022 260 2023 260 2024-2036 2,518 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following table summarizes the current and deferred components of income tax expense (benefit) for each of the years ended December 31, 2018 , 2017 and 2016 : (in thousands) 2018 2017 2016 Current: Federal tax expense $ 6,775 $ 8,705 $ 5,189 State tax expense 1,230 1,039 217 Total current tax expense 8,005 9,744 5,406 Deferred tax expense (443 ) 2,898 470 Impact of federal tax reform enactment — 3,988 — Total income tax expense $ 7,562 $ 16,630 $ 5,876 |
Schedule of Effective Income Tax Rate Reconciliation | The following table reconciles the expected federal income tax expense (computed by applying the federal statutory tax rate of 21%, 35% for years prior to 2018) to recorded income tax expense for the years ended December 31, 2018 , 2017 and 2016 : 2018 2017 2016 (in thousands, except ratios) Amount Rate Amount Rate Amount Rate Statutory tax rate $ 8,505 21.00 % $ 14,918 35.00 % $ 7,283 35.00 % Increase (decrease) resulting from: State taxes, net of federal benefit 908 2.24 986 2.31 141 0.68 Tax exempt interest (1,315 ) (3.25 ) (2,074 ) (4.87 ) (1,388 ) (6.67 ) Federal tax credits (125 ) (0.31 ) (130 ) (0.3 ) — — Officers' life insurance (382 ) (0.94 ) (538 ) (1.26 ) (244 ) (1.17 ) Acquisition costs — — 89 0.21 289 1.39 Stock-based compensation plans (120 ) (0.30 ) (241 ) (0.57 ) — — Impact of federal tax reform enactment — — 3,988 9.36 — — Other 91 0.23 (368 ) (0.86 ) (205 ) (0.99 ) Effective tax rate $ 7,562 18.67 % $ 16,630 39.02 % $ 5,876 28.24 % |
Schedule of Deferred Tax Assets and Liabilities | The significant components of deferred tax assets and liabilities at December 31, 2018 and December 31, 2017 were as follows: 2018 2017 (in thousands) Assets Liabilities Assets Liabilities Allowance for loan losses $ 3,085 $ — $ 2,729 $ — Deferred compensation 3,242 — 3,333 — Unrealized gain or loss on securities available for sale 2,641 — 649 — Unrealized gain or loss on derivatives 685 — 853 — Depreciation — 1,517 — 1,356 Deferred loan origination costs — 725 — 655 Non-accrual interest 374 — 273 — Branch acquisition costs and goodwill — 784 — 737 Core deposit intangible — 1,309 — 1,525 Acquisition fair value adjustments 3,171 — 4,000 — Prepaid expenses — 215 — 302 Interest rate cap premium amortization — 257 — 276 Mortgage servicing rights — 721 — 769 Equity compensation 335 — 297 — Prepaid pension — 366 — 345 Contract incentives 1,658 — 594 — Other 217 — 417 — Total $ 15,408 $ 5,894 $ 13,145 $ 5,965 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of information about derivative assets and liabilities | Information about derivative assets and liabilities at December 31, 2018 and December 31, 2017 , follows: December 31, 2018 Notional Amount Weighted Average Maturity Estimated Fair Value Asset (Liability) (in thousands) (in years) (in thousands) Cash flow hedges: Interest rate caps agreements $ 90,000 4.1 $ 803 Total cash flow hedges 90,000 4.1 803 Non-hedging derivatives: Interest rate lock commitments 957 0.1 8 Customer loan derivative liability 45,641 9.9 (1,353 ) Customer loan derivative asset 45,641 9.9 1,353 Total non-hedging derivatives 92,239 8 Total $ 182,239 $ 811 December 31, 2017 Notional Amount Weighted Average Maturity Estimated Fair Value Asset (Liability) (in thousands) (in years) (in thousands) Cash flow hedges: Interest rate caps agreements $ 90,000 5.1 $ 669 Total cash flow hedges 90,000 669 Economic hedges: Forward sale commitments 20,352 0.2 (221 ) Total economic hedges 20,352 (221 ) Non-hedging derivatives: Interest rate lock commitments 19,853 0.2 (1 ) Total non-hedging derivatives 19,853 (1 ) Total $ 130,205 $ 447 Information about derivative assets and liabilities for December 31, 2018 and December 31, 2017 , follows: Twelve Months Ended December 31, (in thousands) 2018 2017 Cash flow hedges: Interest rate cap agreements Realized in interest expense $ (519 ) $ (257 ) Economic hedges: Forward commitments Realized gain (loss) in other non-interest income 221 (77 ) Non-hedging derivatives: Interest rate lock commitments Realized gain (loss) in other non-interest income 9 (22 ) |
OTHER COMMITMENTS, CONTINGENC_2
OTHER COMMITMENTS, CONTINGENCIES, AND OFF-BALANCE SHEET ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Loss Contingencies by Contingency | The following table summarizes the contractual amounts of commitments and contingent liabilities to customers as of December 31, 2018 and December 31, 2017 : (in thousands) 2018 2017 Commitments to originate new loans $ 20,431 $ 52,438 Unused funds on commercial and other lines of credit 169,063 134,408 Unadvanced funds on home equity lines of credit 106,121 108,745 Unadvanced funds on construction and real estate loans 133,130 87,915 Commercial letters of credit 1,171 928 Standby letters of credit 486 486 Total $ 430,402 $ 384,920 |
Schedule of Future Minimum Rental Payments for Operating Leases | The following table sets forth the approximate future lease payments over the remaining terms of the non-cancelable leases as of December 31, 2018 . (in thousands) Amount 2019 $ 929 2020 902 2021 900 2022 916 2023 905 2024 and thereafter 6,754 Total $ 11,306 |
SHAREHOLDERS_ EQUITY AND EARN_2
SHAREHOLDERS’ EQUITY AND EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Actual and Required Capital Ratios | The actual and required capital ratios at December 31, 2018 and December 31, 2017 were as follows: 2018 Actual Minimum Capital Requirement Minimum to be Well-Capitalized Under Prompt Corrective Action Provisions (in thousands, except ratios) Amount Ratio Amount Ratio Amount Ratio Company (consolidated) Total capital to risk-weighted assets $ 331,628 14.23 % $ 186,405 8.00 % $ 244,656 10.00 % Common equity tier 1 capital to risk-weighted assets 274,838 11.80 104,853 4.50 151,454 6.50 Tier 1 capital to risk-weighted assets 295,458 12.68 139,803 6.00 186,404 8.00 Tier 1 capital to average assets 295,458 8.53 138,482 4.00 173,102 5.00 Bank Total capital to risk-weighted assets $ 321,390 13.82 % $ 186,092 8.00 % $ 244,246 10.00 % Common equity tier 1 capital to risk-weighted assets 302,220 12.99 104,677 4.50 151,200 6.50 Tier 1 capital to risk-weighted assets 302,220 12.99 139,569 6.00 186,092 8.00 Tier 1 capital to average assets 302,220 8.74 138,392 4.00 172,990 5.00 2017 Actual Minimum Capital Requirement Minimum to be Well-Capitalized Under Prompt Corrective Action Provisions (in thousands, except ratios) Amount Ratio Amount Ratio Amount Ratio Company (consolidated) Total capital to risk-weighted assets $ 307,305 13.73 % $ 179,047 8.00 % $ 234,999 10.50 % Common equity tier 1 capital to risk-weighted assets 252,096 11.26 100,714 4.50 145,476 6.50 Tier 1 capital to risk-weighted assets 272,716 12.19 134,286 6.00 179,047 8.00 Tier 1 capital to average assets 272,716 8.10 134,758 4.00 168,447 5.00 Bank Total capital to risk-weighted assets $ 306,495 13.71 % $ 178,868 8.00 % $ 234,764 10.50 % Common equity tier 1 capital to risk-weighted assets 288,906 12.92 100,613 4.50 145,331 6.50 Tier 1 capital to risk-weighted assets 288,906 12.92 134,151 6.00 178,868 8.00 Tier 1 capital to average assets 288,906 8.58 134,702 4.00 168,378 5.00 |
Schedule of Components of Accumulated Other Comprehensive Income | Components of accumulated other comprehensive loss at December 31, 2018 and December 31, 2017 are as follows: (in thousands) 2018 2017 Other accumulated comprehensive loss, before tax: Net unrealized loss on AFS securities $ (11,304 ) $ (2,741 ) Net unrealized loss on derivative hedges (2,934 ) (3,604 ) Net unrealized loss on post-retirement plans (1,162 ) (950 ) Income taxes related to items of accumulated other comprehensive loss: Net unrealized loss on AFS securities 2,641 1,030 Net unrealized loss on derivative hedges 685 1,354 Net unrealized loss on post-retirement plans 272 357 Accumulated other comprehensive loss $ (11,802 ) $ (4,554 ) The following table presents the changes in each component of accumulated other comprehensive income/(loss) in 2018 , 2017 and 2016 : 2018 (in thousands) Net unrealized gain on AFS Securities Net loss on effective derivative hedges Net unrealized loss on post-retirement plans Total Balance at beginning of period $ (1,713 ) $ (2,250 ) $ (591 ) $ (4,554 ) Other comprehensive gain/(loss) before reclassifications (7,293 ) 486 (191 ) (6,998 ) Less: amounts reclassified from accumulated other comprehensive income (708 ) — (22 ) (730 ) Total other comprehensive loss (6,585 ) 486 (169 ) (6,268 ) Less: amounts reclassified from accumulated other comprehensive income for ASU 2018-02 (367 ) (485 ) (128 ) (980 ) Balance at end of period $ (8,665 ) $ (2,249 ) $ (888 ) $ (11,802 ) 2017 (in thousands) Net unrealized gain on AFS Securities Net loss on effective derivative hedges Net unrealized loss on post-retirement plans Total Balance at beginning of period $ (2,125 ) $ (1,798 ) $ (403 ) $ (4,326 ) Other comprehensive gain/(loss) before reclassifications 424 (452 ) (201 ) (229 ) Less: amounts reclassified from accumulated other comprehensive income 12 — (13 ) (1 ) Total other comprehensive loss 412 (452 ) (188 ) (228 ) Balance at end of period $ (1,713 ) $ (2,250 ) $ (591 ) $ (4,554 ) 2016 (in thousands) Net unrealized gain on AFS Securities Net loss on effective derivative hedges Net unrealized loss on post-retirement plans Total Balance at beginning of period $ 5,713 $ (1,621 ) $ (463 ) $ 3,629 Other comprehensive gain/(loss) before reclassifications (4,914 ) (177 ) 42 (5,049 ) Less: amounts reclassified from accumulated other comprehensive income 2,924 — (18 ) 2,906 Total other comprehensive loss (7,838 ) (177 ) 60 (7,955 ) Balance at end of period $ (2,125 ) $ (1,798 ) $ (403 ) $ (4,326 ) |
Schedule of Components of Other Comprehensive Income | The following table presents the components of other comprehensive income in 2018 , 2017 and 2016 : 2018 (in thousands) Before Tax Tax Effect Net of Tax Net unrealized gain on AFS securities: Net unrealized gain arising during the period $ (9,487 ) $ 2,194 $ (7,293 ) Less: reclassification adjustment for gains (losses) realized in net income (924 ) 216 (708 ) Net unrealized gain on AFS securities (8,563 ) 1,978 (6,585 ) Net unrealized loss on derivative hedges: Net unrealized loss arising during the period 654 (168 ) 486 Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized loss on derivative hedges 654 (168 ) 486 Net unrealized loss on post-retirement plans: Net unrealized loss arising during the period (245 ) 54 (191 ) Less: reclassification adjustment for gains (losses) realized in net income (29 ) 7 (22 ) Net unrealized loss on post-retirement plans (216 ) 47 (169 ) Other comprehensive loss $ (8,125 ) $ 1,857 $ (6,268 ) 2017 (in thousands) Before Tax Tax Effect Net of Tax Net unrealized loss on AFS securities: Net unrealized loss arising during the period $ 545 $ (121 ) $ 424 Less: reclassification adjustment for gains (losses) realized in net income 19 (7 ) 12 Net unrealized loss on AFS securities 526 (114 ) 412 Net unrealized loss on derivative hedges: Net unrealized loss arising during the period (838 ) 386 (452 ) Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized loss on derivative hedges (838 ) 386 (452 ) Net unrealized loss on post-retirement plans: Net unrealized gain arising during the period (347 ) 146 (201 ) Less: reclassification adjustment for gains (losses) realized in net income (21 ) 8 (13 ) Net unrealized gain on post-retirement plans (326 ) 138 (188 ) Other comprehensive loss $ (638 ) $ 410 $ (228 ) 2016 (in thousands) Before Tax Tax Effect Net of Tax Net unrealized loss on AFS securities: Net unrealized loss arising during the period $ (7,561 ) $ 2,647 $ (4,914 ) Less: reclassification adjustment for gains (losses) realized in net income 4,498 (1,574 ) 2,924 Net unrealized loss on AFS securities (12,059 ) 4,221 (7,838 ) Net unrealized loss on derivative hedges: Net unrealized loss arising during the period (272 ) 95 (177 ) Less: reclassification adjustment for gains (losses) realized in net income — — — Net unrealized loss on derivative hedges (272 ) 95 (177 ) Net unrealized loss on post-retirement plans: Net unrealized gain arising during the period 62 (20 ) 42 Less: reclassification adjustment for gains (losses) realized in net income (28 ) 10 (18 ) Net unrealized gain on post-retirement plans 90 (30 ) 60 Other comprehensive loss $ (12,241 ) $ 4,286 $ (7,955 ) |
Reclassification out of Accumulated Other Comprehensive Income | The following tables presents the amounts reclassified out of each component of accumulated other comprehensive income (loss) in 2018, 2017 and 2016 : (in thousands) 2018 2017 2016 Affected Line Item where Net Income is Presented Realized gains on AFS securities: Before tax $ (924 ) $ 19 $ 4,498 Non-interest income Tax effect 216 (7 ) (1,574 ) Tax expense Total reclassifications for the period $ (708 ) $ 12 $ 2,924 Net of tax (in thousands) 2018 2017 2016 Affected Line Item where Net Income is Presented Realized loss on post-retirement plans: Before tax $ (29 ) $ (21 ) $ (28 ) Salaries and benefits Tax effect 7 8 10 Tax benefit Total reclassifications for the period $ (22 ) $ (13 ) $ (18 ) Net of tax |
Schedule of Earnings Per Share, Basic and Diluted | Earnings per share have been computed based on the following (average diluted shares outstanding are calculated using the treasury stock method): (in thousands, except per share and share data) 2018 2017 2016 Net income $ 32,937 $ 25,993 $ 14,933 Average number of basic common shares outstanding 15,487,686 15,183,615 9,068,624 Plus: dilutive effect of stock options and awards outstanding 76,778 106,795 74,029 Average number of diluted common shares outstanding 15,564,464 15,290,410 9,142,653 Anti-dilutive options excluded from earnings calculation 7,991 8,659 90,249 Earnings per share: Basic $ 2.13 $ 1.71 $ 1.65 Diluted $ 2.12 $ 1.70 $ 1.63 |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Allocation of Recognized Compensation Expense | Compensation expense recognized in connection with the stock based compensation plans are presented in the following table for the years ended December 31, 2018 , 2017 , and 2016 : (in thousands) 2018 2017 2016 Stock options and restricted stock awards $ 350 $ 399 $ 543 Performance stock units 237 290 304 Restricted stock units 711 585 431 Total compensation expense $ 1,298 $ 1,274 $ 1,278 |
Summary of Stock Option Activity | tock Option and Restricted Stock Awards Activity: A summary combined status of the stock option and restricted stock awards as of December 31, 2018 and 2017 , and changes during the year then ended is presented below: Stock Options Number of Stock Options Outstanding Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding at January 1, 2018 169,921 $ 18.95 Granted — — Exercised (47,534 ) 16.32 Forfeited (750 ) 22.16 Outstanding at December 31, 2018 121,637 $ 19.96 $ 313 Ending vested and expected to vest December 31, 2018 121,637 $ 19.96 $ 313 Exercisable at December 31, 2018 101,554 20.66 192 Stock Options Number of Stock Options Outstanding Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding at January 1, 2017 236,763 $ 17.99 Granted — — Exercised (55,725 ) 15.19 Forfeited (11,117 ) 17.38 Outstanding at December 31, 2017 169,921 $ 18.95 1,370 Ending vested and expected to vest December 31, 2017 169,921 $ 18.95 $ 1,370 Exercisable at December 31, 2017 100,317 18.66 838 |
Summary of Restricted Stock Awards Activity | Restricted Stock Awards Number of Restricted Stock Awards Outstanding Weighted Average Grant Date Fair Value Outstanding at January 1, 2018 — — Awarded 12,420 $ 24.14 Vested (12,420 ) 24.14 Forfeited — — Outstanding at December 31, 2018 — $ — Restricted Stock Awards Number of Restricted Stock Awards Outstanding Weighted Average Grant Date Fair Value Outstanding at January 1, 2017 — — Awarded 8,004 $ 29.96 Vested (8,004 ) 29.96 Forfeited — — Outstanding at December 31, 2017 — $ — |
Performance stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Stock Units Activity | The following table summarizes performance units at target as of December 31, 2018 and 2017 : Performance Stock Units Number of Performance Stock Units Outstanding Weighted Average Grant Date Fair Value Nonvested at January 1, 2018 33,627 $ 25.21 Awarded 23,011 26.30 Vested and exercised (15,017 ) 22.25 Forfeited (3,756 ) 27.94 Nonvested at December 31, 2018 37,865 $ 26.77 Performance Stock Units Number of Performance Stock Units Outstanding Weighted Average Grant Date Fair Value Nonvested at January 1, 2017 34,246 $ 21.25 Awarded 17,711 26.74 Vested and exercised (15,121 ) 18.84 Forfeited (3,209 ) 21.51 Nonvested at December 31, 2017 33,627 $ 25.21 |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Stock Units Activity | The following table summarizes restricted stock units activity in 2018 and 2017 : Restricted Stock Units Number of Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Outstanding at January 1, 2018 74,168 $ 26.60 Granted 46,743 28.66 Vested and exercised (26,489 ) 24.36 Forfeited (13,682 ) 28.28 Outstanding at December 31, 2018 80,740 $ 28.24 Restricted Stock Units Number of Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Outstanding at January 1, 2017 40,681 $ 22.03 Granted 57,561 28.48 Vested and exercised (12,667 ) 21.49 Forfeited (11,407 ) 25.43 Outstanding at December 31, 2017 74,168 $ 26.60 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis Segregated by the Level of the Valuation Inputs Within the Fair Value Hierarchy Utilized to Measure Fair Value | The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2018 and December 31, 2017 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value. December 31, 2018 (in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Available for sale securities: Mortgage-backed securities: US Government-sponsored enterprises $ — $ 404,952 $ — $ 404,952 US Government agency — 110,512 — 110,512 Private label — 20,382 — 20,382 Obligations of states and political subdivisions thereof — 132,265 — 132,265 Corporate bonds — 57,726 — 57,726 Derivative assets — 2,156 8 2,164 Derivative liabilities — (1,353 ) — (1,353 ) December 31, 2017 (in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Available for sale securities: Obligations of US Government sponsored enterprises $ — $ 6,972 $ — $ 6,972 Mortgage-backed securities: US Government-sponsored enterprises — 443,003 — 443,003 US Government agency — 95,596 — 95,596 Private label — 674 — 674 Obligations of states and political subdivisions thereof — 140,200 — 140,200 Corporate bonds — 30,797 — 30,797 Derivative assets — 669 — 669 Derivative liabilities — (222 ) (222 ) |
Schedule of Changes in Level 3 Assets and Liabilities That Were Measured at Fair Value on a Recurring Basis | The table below presents the changes in Level 3 assets and liabilities that were measured at fair value on a recurring basis in 2018 and 2017 . Assets (Liabilities) (in thousands) Interest Rate Lock Commitments Forward Commitments December 31, 2016 $ — $ — Business combination, January 13, 2017 96 23 Goodwill adjustment for business combination (75 ) (167 ) Realized loss recognized in non-interest income (22 ) (77 ) December 31, 2017 $ (1 ) $ (221 ) Realized gain recognized in non-interest income 9 221 December 31, 2018 $ 8 $ — |
Schedule of Quantitative Information About the Significant Unobservable Inputs Within Level 3 | Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities is as follows: (in thousands, except ratios) Fair Value Valuation Techniques Unobservable Inputs Significant Unobservable Input Value Assets (Liabilities) Interest Rate Lock Commitment $ 8 Historical trend Closing Ratio 90 % Pricing Model Origination Costs, per loan $ 1.7 Forward Commitments — Quoted prices for similar loans in active markets. Freddie Mac pricing system Pair-off contract price Total $ 8 Quantitative information about the significant unobservable inputs within Level 3 non-recurring assets as of December 31, 2018 and December 31, 2017 is as follows: Fair Value Range (Weighted Average) (a) (in thousands, except ratios) December 31, 2018 Valuation Techniques Unobservable Inputs Assets Impaired loans $ 11,676 Fair value of collateral - appraised value Loss severity 0% to 55.00% Appraised value $0 to $6,915 Impaired loans 3,537 Discounted cash flow Discount rate 2.88% to 9.50% Cash flows $22 to $1,072 Capitalized servicing rights 4,882 Discounted cash flow Constant prepayment rate (CPR) 8.19 % Discount rate 10.08 % Other real estate owned 2,351 Fair value of collateral less selling costs Appraised value $2,700 Selling costs 12.93 % Total $ 22,446 ______________________________________ (a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties. Fair Value Range (Weighted Average) (a) (in thousands, except ratios) December 31, 2017 Valuation Techniques Unobservable Inputs Assets Impaired loans $ 8,586 Fair value of collateral - appraised value Loss severity 15.70% to 45.28% Appraised value $100 to $7,545 Impaired loans 2,207 Discount cash flow Discount rate 2.63% to 9.50% Cash flows $6 to $320 Capitalized servicing rights 4,158 Discounted cash flow Constant prepayment rate (CPR) 10.97 % Discount rate 10.10 % Other real estate owned 122 Fair value of collateral less selling costs Appraised value $136 Selling costs 10.00 % Total $ 15,073 ______________________________________ (a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individuals properties. |
Summary of Applicable Non-Recurring Fair Value Measurements | The following is a summary of applicable non-recurring fair value measurements as of December 31, 2018 and December 31, 2017 . There are no liabilities measured at fair value on a non-recurring basis. December 31, 2018 December 31, 2017 December 31, 2018 Fair Value Measurement Date as of December 31, 2018 (in thousands) Level 3 Inputs Level 3 Total Gains (Losses) Level 3 Inputs Assets Impaired loans $ 15,213 $ 10,793 $ (4,420 ) December 2018 Capitalized servicing rights 4,882 4,158 — December 2018 Other real estate owned 2,351 122 (20 ) April 2018 Total $ 22,446 $ 15,073 $ (4,440 ) |
Summary of Estimated Fair Values, and Related Carrying Amounts, of Financial Instruments | Summary of Estimated Fair Values of Financial Instruments The following table represents estimated fair values, and related carrying amounts of the Company’s financial instruments as of December 31, 2018 and December 31, 2017 . Certain financial instruments and all non-financial instruments are excluded from disclosure requirements. Accordingly, the aggregate fair value amounts presented herein may not necessarily represent the underlying fair value of the Company. December 31, 2018 (in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 98,754 $ 98,754 $ 98,754 $ — $ — Securities available for sale 725,837 725,837 — 725,837 — FHLB bank stock 35,659 35,659 — 35,659 — Net loans 2,476,361 2,415,863 — — 2,415,863 Accrued interest receivable 3,533 3,533 — 3,533 — Cash surrender value of bank-owned life insurance policies 73,810 73,810 — 73,810 — Derivative assets 2,164 2,164 — 2,156 8 Financial Liabilities Total deposits $ 2,483,238 $ 2,404,250 $ — $ 2,404,250 $ — Other short-term borrowings 36,211 36,171 — 36,171 — Federal Home Loan Bank advances 644,611 643,065 — 643,065 — Subordinated borrowings 37,973 37,973 — 37,973 — Junior subordinated borrowings 5,000 3,923 — 3,923 — Derivative liabilities (1,353 ) (1,353 ) — — (1,353 ) December 31, 2017 (in thousands) Carrying Fair Level 1 Level 2 Level 3 Financial Assets Cash and cash equivalents $ 90,685 $ 90,685 $ 90,685 $ — $ — Securities available for sale 717,242 717,242 — 717,242 — FHLB bank stock 38,105 38,105 — 38,105 — Net loans 2,473,288 2,433,557 — — 2,433,557 Accrued interest receivable 3,347 3,347 — 3,347 — Cash surrender value of bank-owned life insurance policies 57,997 57,997 — 57,997 — Derivative assets 669 669 — 669 — Financial Liabilities Total deposits $ 2,352,085 $ 2,348,574 $ — $ 2,348,574 $ — Other short-term borrowings 40,706 40,680 — 40,680 — Federal Home Loan Bank advances 745,982 744,006 — 744,006 — Subordinated borrowings 38,033 38,033 — 38,033 — Junior subordinated borrowings 5,000 3,782 — 3,782 — Derivative liabilities (222 ) (222 ) — — (222 ) |
NON-INTEREST INCOME (Tables)
NON-INTEREST INCOME (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Financial Statement Impact | The following table provides a brief description of accounting standards that could have a material impact to the Company’s consolidated financial statements upon adoption: Standard Description Required Date of Adoption Effect on financial statements Standards Adopted in 2018 ASU 2014-09, Revenue from Contracts with Customers This ASU supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the Industry topics of the Codification. The core principle of the ASU is an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU may be adopted either retrospectively or on a modified retrospective basis. January 1, 2018 The Company adopted this ASU as of January 1, 2018, upon completion of an analysis to identify all revenue streams within the scope of this accounting guidance. After reviewing the related contracts as prescribed by the five steps within this ASU, one contract resulted in recognition of a $241 thousand liability with a $184 thousand impact to retained earnings net of tax. The remaining changes had no material impact on the consolidated financial statements. See Note 11 for more detail and transitional disclosures. ASU 2015-14, Deferral of the Effective Date ASU 2016-08, Principal versus Agent Considerations ASU 2016-10, Identifying Performance Obligations and Licensing ASU 2016-12, Narrow-Scope Improvements and Practical Expedience ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers ASU 2016-01, Recognition and Measurement of Financial Assets and Liabilities This ASU amends ASC Topic 825, Financial Instruments-Overall, and addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. Among other minor amendments applicable to the Company, the main provisions require investments in equity securities to be measured at fair value with changes in fair value recognized through net income unless they qualify for a practicability exception (excludes investments accounted for under the equity method of accounting or those that result in consolidation of the investee). Except for disclosure requirements that will be adopted prospectively, the ASU must be adopted on a modified retrospective basis. January 1, 2018 The Company adopted this ASU as of January 1, 2018, although it did not have any equity securities that would be in scope of this ASU. However, the Company is subject to the exit pricing notion required in fair value disclosures and after calculating the fair value, the Company had no material impact to its consolidated financial statements. ASU-2018-03, Technical Corrections and Improvements to Financial Instruments ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments This ASU amends Topic 230, Statement of Cash Flows, and provides clarification with respect to classification within the statement of cash flows where current guidance is unclear or silent. The ASU should be adopted retrospectively. If it is impractical to apply the guidance retrospectively for an issue, the amendments related to the issue would be applied prospectively. January 1, 2018 The Company adopted this ASU as of January 1, 2018, although it did not have a material impact on the Company's consolidated financial statements. Standard Description Required Date of Adoption Effect on financial statements Standards Adopted in 2018 (continued) ASU 2017-07, Compensation- Retirement Benefits This ASU amends Topic 715, Retirement Benefits, and provides more prescriptive guidance around the presentation of net period pension and post-retirement benefit cost in the income statement. The amendment requires the service cost component be disaggregated from other components of net periodic benefit cost in the income statement. January 1, 2018 The Company adopted this ASU as of January 1, 2018, although it did not have a material impact on the Company's consolidated financial statements. Early adoption is permitted. ASU 2017-09, Stock Compensation: Scope of Modification Accounting This ASU amends Topic 718, Compensation- Stock Compensation, and clarifies when modification accounting should be applied to changes in terms or conditions of share-based payment awards. The amendments narrow the scope of modification accounting by clarifying that modification accounting should be applied to awards if the change affects the fair value, vesting conditions, or classification of the award. The amendments do not impact current disclosure requirements for modifications, regardless of whether modification accounting is required under the new guidance. January 1, 2018 The Company adopted this ASU as of January 1, 2018, although it did not have a material impact on the Company's consolidated financial statements. ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income The ASU amends Topic 220, Income Statement-Reporting Comprehensive Income, and is intended to help organizations reclassify certain stranded income tax effects in accumulated other comprehensive income resulting from the recently enacted Tax Reform. The guidance allows entities to reclassify stranded tax effects in accumulated other comprehensive income to retained earnings. January 1, 2019 The Company adopted this ASU as of March 31, 2018. The effect of the reclassification resulted in an increase to retained earnings and a decrease to accumulated other comprehensive income of $980 thousand with zero net effect on total stockholders' equity. ASU 2018-05, Income Taxes (Topic 740) SEC Amendments Early adoption is permitted. ASU 2018-06, Codification Improvements to Topic 942, Financial Services - Depository and Lending Circular 202, issued on July 2, 1985, was rescinded by the Office of the Comptroller of the Currency. The circular limited the net deferred tax debits that could be carried on the Company's balance sheet for regulatory purposes to the amount that would be coverable by the net operating loss carrybacks. The language is no longer relevant and has been removed from the guidance. May 2018 The Company adopted this ASU as of January 1, 2018, although it did not have a material impact on the Company's consolidated financial statements. Standard Description Required Date of Adoption Effect on financial statements Standards Not Yet Adopted ASU 2016-02, Leases This ASU creates ASU Topic 842, Leases, and supersedes Topic 840, Leases. The new guidance requires lessees to record a right-of-use asset and a corresponding liability equal to the present value of future rental payments on their balance sheets for all leases with a term greater than one year. There are not significant changes to lessor accounting; however, there are certain improvements made to align lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. This guidance expands both quantitative and qualitative required disclosures. This ASU is required to be adopted on a modified retrospective basis and allows for practical expedients and elections in conjunction with implementation. The Company may elect some of the expedients upon the adoption date, which may be applied prospectively or retrospectively. January 1, 2019 The Company plans to elect the practical expedients, allowing for existing leases to be accounted for consistent with current guidance, with the exception of balance sheet recognition for lessees. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. The Company will use the effective date as the initial date of application. At adoption the Company expects to recognize a right-of-use asset and corresponding lease liability of $9.0 million. This estimate is based, primarily, on the present value of unpaid future minimum lease payments. Additionally, that amount is impacted by assumptions around renewals and/or extensions, and the interest rate used to discount those future lease obligations. Due to the limited size of the Company's leasing portfolio, many other items related to this standard don't apply, or have an immaterial impact on the Company's consolidated financial statements. ASU 2018-11 Practical Expedients to Topic 842, Leases ASU 2018-02 Scope Improvements for Lessors ASU 2016-13, Measurement of Credit Losses on Financial Instruments This ASU amends Topic 326, Financial Instruments- Credit Losses to replace the current incurred loss accounting model with a current expected credit loss approach (CECL) for financial instruments measured at amortized cost and other commitments to extend credit. The amendments require entities to consider all available relevant information when estimating current expected credit losses, including details about past events, current conditions, and reasonable and supportable forecasts. The resulting allowance for credit losses is to reflect the portion of the amortized cost basis that the entity does not expect to collect. The amendments also eliminate the current accounting model for purchased credit impaired loans and debt securities. Additional quantitative and qualitative disclosures are required upon adoption. January 1, 2020 Adoption of this ASU is expected to primarily change how the Company estimates credit losses with the application of the expected credit loss model. In addition, the Company expects the ASU to change the presentation of credit losses for AFS debt securities through an allowance method rather than as a direct write-off. The Company is in the process of evaluating loan loss estimation models to comply with the guidance under this ASU, which may result in a higher credit loss estimate. ASU 2018-19, Codification Improvements to ASU 2016-13 While the CECL model does not apply to available for sale debt securities, the ASU does require entities to record an allowance when recognizing credit losses for available for sale securities, rather than reduce the amortized cost of the securities by direct write-offs. The ASU should be adopted on a modified retrospective basis. Entities that have loans accounted for under ASC 310-30 at the time of adoption should prospectively apply the guidance in this amendment for purchase credit deteriorated assets. Early adoption is permitted in 2019 Standard Description Required Date of Adoption Effect on financial statements Standards Not Yet Adopted (continued) ASU 2017-04, Simplifying the Test for Goodwill Impairment This ASU amends Topic 350, Intangibles-Goodwill and Other, and eliminates Step 2 from the goodwill impairment test. January 1, 2020 Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. Early adoption is permitted. ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities This ASU amends ASC 815, Derivatives and Hedging to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity's risk management activities by better aligning the entity's financial reporting for hedging relationships with those risk management activities and (2) reduce the complexity of and simplify the application of hedge accounting by preparers. January 1, 2019 Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. ASU 2018-16, Inclusion of Overnight Financing Rate or Overnight Swap Rate as a Benchmark for Hedge Accounting ASU 2018-07, Share Based Payment Accounting This ASU expands the scope of Topic 718, Compensation- Stock Compensation to include share-based payments issued to non-employees for goods or services. Consequently, the accounting for share-based payments to non-employees and employees will be substantially aligned. The ASU supersedes Subtopic 505-50, Equity-Based Payments to non-employees. January 1, 2019 Adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements as the Company does not participate in these types of arrangements in the normal course of business, except for board director compensation. ASU 2018-13 Changes to Disclosure Requirements Fair Value Measurement, Topic 820 This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. January 1, 2020 The Company is currently evaluating this guidance to determine any impact on the Company's consolidated financial statements. Early adoption is permitted. ASU 2018-14 Compensation- Disclosure Requirements for Defined Pension Plans Topic 715-20 This ASU makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other post-retirement benefit plans. January 1, 2021 The Company is currently evaluating this guidance to determine any impact on the Company's consolidated financial statements. Early adoption is permitted. Financial Statement Impact The cumulative effect of the changes made to the consolidated January 1, 2018 balance sheet for the adoption were as follows: (in thousands) Balance at December 31, 2017 Adjustments due to Topic 606 Balance at January 1, 2018 Balance Sheet Other Assets $ 24,389 $ 57 $ 24,446 Other Liabilities 28,737 241 28,978 Retained Earnings 144,977 (184 ) 144,793 |
Disaggregation of Revenue | Disaggregation of Revenue The following tables disaggregates the Company’s revenue by major business line and timing of transfer of products or services: (in thousands) Twelve Months Ended December 31, 2018 Major Products/Service Lines Trust management fees $ 11,017 Financial services fees 968 Interchange fees 4,434 Customer deposit fees 3,800 Other customer service fees 1,304 Total $ 21,523 (in thousands) Twelve Months Ended December 31, 2018 Timing of Revenue Recognition Products and services transferred at a point in time $ 9,766 Products and services transferred over time 11,757 Total $ 21,523 |
Contract Balances with Customer | Contract Balances with Customers The following table provides information about receivables, contract assets, and deferred revenues from contracts with customers. (in thousands) Balance at December 31, 2018 Balance at December 31, 2017 Other Assets $ 2,866 $ 972 Other Liabilities 4,923 342 |
CONDENSED FINANCIAL STATEMENT_2
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet | CONDENSED BALANCE SHEETS December 31, (in thousands) 2018 2017 Assets Cash due from Bar Harbor Bank and Trust $ 9,993 $ 2,400 Investment in subsidiaries 398,821 392,073 Premises and equipment 687 687 Other assets 3,416 939 Total assets $ 412,917 $ 396,099 Liabilities and Shareholders Equity Subordinated notes $ 37,973 $ 38,033 Accrued expenses 4,365 3,425 Shareholders equity 370,579 354,641 Total Liabilities and shareholders equity $ 412,917 $ 396,099 |
Condensed Income Statement | CONDENSED STATEMENTS OF INCOME Years Ended December 31, (in thousands) 2018 2017 2016 Income: Dividends from subsidiaries $ 23,705 $ 13,907 $ 6,473 Other 31 25 — Total income 23,736 13,932 6,473 Interest expense 2,121 1,857 — Non-interest expense 3,147 2,979 2,949 Total expense 5,268 4,836 2,949 Income before taxes and equity in undistributed income of subsidiaries 18,468 9,096 3,524 Income tax benefit (1,136 ) (1,210 ) (1,029 ) Income before equity in undistributed income of subsidiaries 19,604 10,306 4,553 Equity in undistributed income of subsidiaries 13,333 15,687 10,380 Net income $ 32,937 $ 25,993 $ 14,933 |
Condensed Cash Flow Statement | CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, (in thousands) 2018 2017 2016 Cash flows from operating activities: Net income $ 32,937 $ 25,993 $ 14,933 Adjustments to reconcile net income to net cash (used) provided by operating activities: Equity in undistributed income of subsidiaries (13,333 ) (15,687 ) (10,380 ) Other, net (1,457 ) (1,364 ) 1,336 Net cash provided by operating activities 18,147 8,942 5,889 Cash flows from investing activities: Acquisitions, net of cash paid — 1,939 — Purchase of securities (7 ) — — Other, net — — (1 ) Net cash provided by/(used in) investing activities (7 ) 1,939 (1 ) Cash flows from financing activities: Net proceeds from common stock 951 1,052 1,570 Net proceeds from reissuance of treasury stock 686 686 (497 ) Common stock cash dividends paid (12,184 ) (11,505 ) (6,577 ) Other, net — (16 ) — Net cash used in financing activities (10,547 ) (9,783 ) (5,504 ) Net change in cash and cash equivalents 7,593 1,098 384 Cash and cash equivalents at beginning of year 2,400 1,302 918 Cash and cash equivalents at end of year $ 9,993 $ 2,400 $ 1,302 |
QUARTERLY DATA (UNAUDITED) (Tab
QUARTERLY DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Quarterly results of operations were as follows during 2018 and 2017 : 2018 (in thousands, except per share data) Fourth Quarter Third Quarter Second Quarter First Quarter Interest and dividend income $ 32,772 $ 32,184 $ 31,718 $ 30,777 Interest expense 10,508 9,715 8,726 7,619 Net interest income 22,264 22,469 22,992 23,158 Non-interest income 7,450 7,126 7,121 6,238 Provision for loan losses 572 643 770 795 Non-interest expense 20,096 17,906 18,685 18,852 Income before income taxes 9,046 11,046 10,658 9,749 Income tax expense 1,426 2,076 2,123 1,937 Net income $ 7,620 $ 8,970 $ 8,535 $ 7,812 Basic earnings per share $ 0.49 $ 0.58 $ 0.55 $ 0.51 Diluted earnings per share 0.49 0.58 0.55 0.50 Weighted average shares outstanding: Basic 15,516 15,503 15,482 15,448 Diluted 15,574 15,580 15,571 15,553 2017 (in thousands, except per share data) Fourth Quarter Third Quarter Second Quarter First Quarter Interest and dividend income $ 30,156 $ 30,063 $ 29,665 $ 26,185 Interest expense 6,660 6,585 5,856 4,813 Net interest income 23,496 23,478 23,809 21,372 Non-interest income 6,518 6,960 6,558 5,946 Provision for loan losses 597 660 736 795 Non-interest expense 14,263 17,586 20,046 20,831 Income before income taxes 15,154 12,192 9,585 5,692 Income tax expense 8,545 3,575 3,029 1,481 Net income $ 6,609 $ 8,617 $ 6,556 $ 4,211 Basic earnings per share $ 0.43 $ 0.56 $ 0.43 $ 0.29 Diluted earnings per share 0.43 0.56 0.42 0.29 Weighted average shares outstanding: Basic 15,437 15,420 15,393 14,471 Diluted 15,537 15,511 15,506 14,591 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | Mar. 31, 2018USD ($) | Jan. 01, 2018USD ($) | Feb. 21, 2017 | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2017USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||
Reserve requirements of vault cash and/or deposits, included in cash and equivalents | $ 15,800 | $ 12,700 | ||||
Property, Plant and Equipment [Line Items] | ||||||
Contract with customer | $ 241 | |||||
Conversion ratio on stock split | 1.5 | |||||
Premises | Minimum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated useful live of premises and equipment | 25 years | |||||
Premises | Maximum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated useful live of premises and equipment | 39 years | |||||
Furniture and equipment | Minimum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated useful live of premises and equipment | 3 years | |||||
Furniture and equipment | Maximum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated useful live of premises and equipment | 7 years | |||||
Retained earnings | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Decrease to accumulated comprehensive income after adoption of ASU 2018-02 | $ 980 | $ (980) | ||||
Retained earnings | Accounting Standards Update 2014-09 | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Modified retrospective basis adoption of Revenue Recognition Accounting Codification Standard 606 | $ 184 | |||||
Scenario, Forecast | Subsequent Event | Accounting Standards Update 2016-02 [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Operating Lease, Right-of-Use Asset | $ 9,000 | |||||
Operating Lease, Liability | $ 9,000 |
SECURITIES AVAILABLE FOR SALE -
SECURITIES AVAILABLE FOR SALE - Summary of Securities Available for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Available-for-sale Securities, Fair Value to Amortized Cost Basis | ||
Amortized Cost | $ 737,141 | $ 719,983 |
Gross Unrealized Gains | 2,871 | 5,036 |
Gross Unrealized Losses | 14,175 | 7,777 |
Fair Value | 725,837 | 717,242 |
Obligations of US Government sponsored enterprises | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis | ||
Amortized Cost | 6,967 | |
Gross Unrealized Gains | 5 | |
Gross Unrealized Losses | 0 | |
Fair Value | 6,972 | |
US Government-sponsored enterprises | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis | ||
Amortized Cost | 413,492 | 447,081 |
Gross Unrealized Gains | 904 | 1,738 |
Gross Unrealized Losses | 9,444 | 5,816 |
Fair Value | 404,952 | 443,003 |
US Government agency | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis | ||
Amortized Cost | 111,938 | 96,357 |
Gross Unrealized Gains | 509 | 413 |
Gross Unrealized Losses | 1,935 | 1,174 |
Fair Value | 110,512 | 95,596 |
Private label | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis | ||
Amortized Cost | 20,353 | 529 |
Gross Unrealized Gains | 113 | 150 |
Gross Unrealized Losses | 84 | 5 |
Fair Value | 20,382 | 674 |
Obligations of states and political subdivisions thereof | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis | ||
Amortized Cost | 133,260 | 138,522 |
Gross Unrealized Gains | 1,081 | 2,407 |
Gross Unrealized Losses | 2,076 | 729 |
Fair Value | 132,265 | 140,200 |
Corporate bonds | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis | ||
Amortized Cost | 58,098 | 30,527 |
Gross Unrealized Gains | 264 | 323 |
Gross Unrealized Losses | 636 | 53 |
Fair Value | $ 57,726 | $ 30,797 |
SECURITIES AVAILABLE FOR SALE_2
SECURITIES AVAILABLE FOR SALE - Schedule of Maturity of Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Available for sale, Amortized Cost | ||
Within 1 year | $ 425 | |
Over 1 year to 5 years | 23,312 | |
Over 5 years to 10 years | 62,111 | |
Over 10 years | 105,510 | |
Total bonds and obligations | 191,358 | |
Mortgage-backed securities | 545,783 | |
Amortized Cost | 737,141 | $ 719,983 |
Available for sale, Fair Value | ||
Within 1 year | 427 | |
Over 1 year to 5 years | 23,311 | |
Over 5 years to 10 years | 62,055 | |
Over 10 years | 104,198 | |
Total bonds and obligations | 189,991 | |
Mortgage-backed securities | 535,846 | |
Available-for-sale securities, fair value | $ 725,837 | $ 717,242 |
SECURITIES AVAILABLE FOR SALE_3
SECURITIES AVAILABLE FOR SALE - Proceeds from the Sale of Securities and Realized Gains and Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from Sale of Securities Available for Sale | $ 29,107 | $ 1,599 | $ 66,583 |
Realized Gains | 0 | 19 | 4,498 |
Realized Losses | 924 | 0 | 0 |
Net | $ (924) | $ 19 | $ 4,498 |
SECURITIES AVAILABLE FOR SALE_4
SECURITIES AVAILABLE FOR SALE - Summary of Securities with Unrealized Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Gross Unrealized Losses | ||
Less Than Twelve Months | $ 517 | $ 2,565 |
Over Twelve Months | 13,658 | 5,212 |
Total | 14,175 | 7,777 |
Fair Value | ||
Less Than Twelve Months | 50,873 | 251,956 |
Over Twelve Months | 428,272 | 175,168 |
Total | 479,145 | 427,124 |
US Government-sponsored enterprises | ||
Gross Unrealized Losses | ||
Less Than Twelve Months | 155 | 1,895 |
Over Twelve Months | 9,289 | 3,921 |
Total | 9,444 | 5,816 |
Fair Value | ||
Less Than Twelve Months | 19,367 | 189,486 |
Over Twelve Months | 297,569 | 117,156 |
Total | 316,936 | 306,642 |
US Government agency | ||
Gross Unrealized Losses | ||
Less Than Twelve Months | 16 | 559 |
Over Twelve Months | 1,919 | 615 |
Total | 1,935 | 1,174 |
Fair Value | ||
Less Than Twelve Months | 2,570 | 45,221 |
Over Twelve Months | 68,266 | 30,155 |
Total | 70,836 | 75,376 |
Private label | ||
Gross Unrealized Losses | ||
Less Than Twelve Months | 79 | 0 |
Over Twelve Months | 5 | 5 |
Total | 84 | 5 |
Fair Value | ||
Less Than Twelve Months | 10,393 | 8 |
Over Twelve Months | 47 | 130 |
Total | 10,440 | 138 |
Obligations of states and political subdivisions thereof | ||
Gross Unrealized Losses | ||
Less Than Twelve Months | 43 | 58 |
Over Twelve Months | 2,033 | 671 |
Total | 2,076 | 729 |
Fair Value | ||
Less Than Twelve Months | 6,784 | 8,298 |
Over Twelve Months | 47,930 | 27,727 |
Total | 54,714 | 36,025 |
Corporate bonds | ||
Gross Unrealized Losses | ||
Less Than Twelve Months | 224 | 53 |
Over Twelve Months | 412 | 0 |
Total | 636 | 53 |
Fair Value | ||
Less Than Twelve Months | 11,759 | 8,943 |
Over Twelve Months | 14,460 | 0 |
Total | $ 26,219 | $ 8,943 |
SECURITIES AVAILABLE FOR SALE_5
SECURITIES AVAILABLE FOR SALE - Securities Pledged for Collateral (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Carrying Value | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged for deposits | $ 128,949 | $ 195,921 |
Securities pledged for repurchase agreements | 55,656 | 98,407 |
Securities pledged for other borrowings | 270,252 | 213,379 |
Total securities pledged | 454,857 | 507,707 |
Estimated Fair Value | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Securities pledged for deposits | 126,649 | 194,681 |
Securities pledged for repurchase agreements | 54,189 | 98,050 |
Securities pledged for other borrowings | 265,334 | 212,089 |
Total securities pledged | $ 446,172 | $ 504,820 |
SECURITIES AVAILABLE FOR SALE_6
SECURITIES AVAILABLE FOR SALE - Securities Impairment (Details) - Available-for-sale Securities - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Estimated credit losses as of period start | $ 1,697 | $ 1,697 | $ 3,180 |
Reductions for securities paid off during the period | 0 | 0 | 1,483 |
Estimated credit losses at end of the period | $ 1,697 | $ 1,697 | $ 1,697 |
SECURITIES AVAILABLE FOR SALE_7
SECURITIES AVAILABLE FOR SALE - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2018USD ($)security | Dec. 31, 2017shares | |
Investment Holdings [Line Items] | ||
Gain on sale of shares | $ | $ 2,100,000 | |
Visa Class B | ||
Investment Holdings [Line Items] | ||
Number of Visa Class shares owned (in shares) | shares | 15,542 | |
Shares acquired from IPO (in shares) | shares | 11,623 | |
Shares acquired through business combination (in shares) | shares | 3,919 | |
US Government-sponsored enterprises | ||
Investment Holdings [Line Items] | ||
Debt securities in an unrealized loss position | 117 | |
Available for sale securities portfolio, number of securities (security) | 194 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses percentage | 2.70% | |
Private label | ||
Investment Holdings [Line Items] | ||
Debt securities in an unrealized loss position | 15 | |
Available for sale securities portfolio, number of securities (security) | 23 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses percentage | 0.80% | |
Municipal Bonds | ||
Investment Holdings [Line Items] | ||
Debt securities in an unrealized loss position | 118 | |
Available for sale securities portfolio, number of securities (security) | 257 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses percentage | 3.70% | |
Material underlying credit downgrades | $ | $ 0 | |
Obligations of states and political subdivisions thereof | ||
Investment Holdings [Line Items] | ||
Debt securities in an unrealized loss position | 451 | |
Available for sale securities portfolio, number of securities (security) | 759 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses percentage | 2.90% | |
Corporate bonds | ||
Investment Holdings [Line Items] | ||
Debt securities in an unrealized loss position | 10 | |
Available for sale securities portfolio, number of securities (security) | 21 | |
Available for sale and held to maturity securities, continuous unrealized loss position, aggregate losses percentage | 2.40% |
LOANS - Summary of Total Loans
LOANS - Summary of Total Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | $ 2,490,227 | $ 2,485,613 |
Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 1,630,897 | 1,452,630 |
Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 859,330 | 1,032,983 |
Commercial real estate: | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 826,699 | 826,746 |
Commercial real estate: | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 579,734 | 534,011 |
Commercial real estate: | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 246,965 | 292,735 |
Commercial real estate: | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 26,644 | 45,673 |
Commercial real estate: | Construction and land development | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 23,754 | 28,892 |
Commercial real estate: | Construction and land development | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 2,890 | 16,781 |
Commercial real estate: | Other commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 800,055 | 781,073 |
Commercial real estate: | Other commercial real estate | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 555,980 | 505,119 |
Commercial real estate: | Other commercial real estate | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 244,075 | 275,954 |
Commercial and industrial: | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 404,870 | 379,423 |
Commercial and industrial: | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 313,662 | 268,004 |
Commercial and industrial: | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 91,208 | 111,419 |
Commercial and industrial: | Other Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 287,227 | 266,120 |
Commercial and industrial: | Other Commercial | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 234,757 | 198,051 |
Commercial and industrial: | Other Commercial | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 52,470 | 68,069 |
Commercial and industrial: | Agricultural | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 22,317 | 27,588 |
Commercial and industrial: | Agricultural | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 22,317 | 27,588 |
Commercial and industrial: | Agricultural | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 0 | 0 |
Commercial and industrial: | Tax exempt | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 95,326 | 85,715 |
Commercial and industrial: | Tax exempt | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 56,588 | 42,365 |
Commercial and industrial: | Tax exempt | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 38,738 | 43,350 |
Total commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 1,231,569 | 1,206,169 |
Total commercial loans | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 893,396 | 802,015 |
Total commercial loans | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 338,173 | 404,154 |
Residential real estate: | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 1,144,698 | 1,155,682 |
Residential real estate: | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 670,189 | 591,411 |
Residential real estate: | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 474,509 | 564,271 |
Residential real estate: | Residential mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 1,144,698 | 1,155,682 |
Residential real estate: | Residential mortgages | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 670,189 | 591,411 |
Residential real estate: | Residential mortgages | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 474,509 | 564,271 |
Consumer: | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 113,960 | 123,762 |
Consumer: | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 67,312 | 59,204 |
Consumer: | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 46,648 | 64,558 |
Consumer: | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 103,189 | 113,593 |
Consumer: | Home equity | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 57,898 | 51,376 |
Consumer: | Home equity | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 45,291 | 62,217 |
Consumer: | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 10,771 | 10,169 |
Consumer: | Other consumer | Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | 9,414 | 7,828 |
Consumer: | Other consumer | Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans, gross | $ 1,357 | $ 2,341 |
LOANS - Unamortized Net Costs a
LOANS - Unamortized Net Costs and Premiums (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Unamortized net loan origination costs | $ 3,064 | $ 2,445 |
Unamortized net premium on purchased loans | (127) | (123) |
Total unamortized net costs and premiums | $ 2,937 | $ 2,322 |
LOANS - Narrative (Details)
LOANS - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)modification | Dec. 31, 2017USD ($)modification | Dec. 31, 2016USD ($)modification | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Collateral value of pledged loans to Federal Reserve Bank of Boston | $ 96,300 | ||
Collateral value of pledged loans for FHLB borrowings | 986,200 | ||
Loans | $ 2,490,227 | $ 2,485,613 | |
Borrower's sustained repayment performance period | 6 months | ||
Modifications that subsequently defaulted, number of contracts | modification | 0 | 0 | 0 |
Loan portfolio | $ 2,490,227 | $ 2,485,613 | |
Servicing loans for participants | 496,500 | 497,900 | |
Contractually specified servicing fees | 1,300 | 1,200 | $ 28 |
Residential real estate: | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Foreclosed property | 2,400 | 90 | |
Loan portfolio | 1,144,698 | 1,155,682 | |
Total loans held for sale | 168 | 13,400 | |
Net gains on sales of loans | 121 | 222 | |
Residential real estate: | Mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Process of foreclosure | 1,500 | 843 | |
Acquired Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 859,330 | 1,032,983 | |
Acquired credit impaired | 10,100 | ||
Certain loans acquired in transfer not accounted for as debt securities, note balance, net | 14,000 | ||
Financing receivable not considered impaired at time of acquisition | 849,200 | ||
Loan portfolio | 859,330 | 1,032,983 | |
Acquired Loans | Residential real estate: | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 474,509 | 564,271 | |
Loan portfolio | 474,509 | 564,271 | |
Product Line | Loan concentration | Lodging industry | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan portfolio | $ 223,000 | $ 234,600 | |
Percentage of loan portfolio | 9.00% | 9.40% |
LOANS - Accretable Yield Activi
LOANS - Accretable Yield Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at beginning of period | $ 3,509 | $ 0 |
Acquisitions | 0 | 3,398 |
Reclassification from nonaccretable difference for loans with improved cash flows | 2,240 | 1,925 |
Changes in expected cash flows that do not affect the nonaccretable difference | 0 | 0 |
Reclassification to TDR | (30) | 0 |
Accretion | (1,342) | (1,814) |
Balance at end of period | $ 4,377 | $ 3,509 |
LOANS - Summary of Past Due Loa
LOANS - Summary of Past Due Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | $ 2,490,227 | $ 2,485,613 |
Business Activities Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 14,439 | 15,498 |
Current | 1,616,458 | 1,437,132 |
Total loans | 1,630,897 | 1,452,630 |
Past Due 90 days and Accruing | 50 | 494 |
Business Activities Loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,260 | 4,840 |
Business Activities Loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 707 | 2,882 |
Business Activities Loans | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 8,472 | 7,776 |
Business Activities Loans | Commercial real estate: | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7,871 | 8,326 |
Current | 571,863 | 525,685 |
Total loans | 579,734 | 534,011 |
Past Due 90 days and Accruing | 0 | 119 |
Business Activities Loans | Commercial real estate: | Construction and land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 637 |
Current | 23,754 | 28,255 |
Total loans | 23,754 | 28,892 |
Past Due 90 days and Accruing | 0 | 0 |
Business Activities Loans | Commercial real estate: | Other commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7,871 | 7,689 |
Current | 548,109 | 497,430 |
Total loans | 555,980 | 505,119 |
Past Due 90 days and Accruing | 0 | 119 |
Business Activities Loans | Commercial real estate: | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,146 | 965 |
Business Activities Loans | Commercial real estate: | 30-59 Days Past Due | Construction and land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Business Activities Loans | Commercial real estate: | 30-59 Days Past Due | Other commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,146 | 965 |
Business Activities Loans | Commercial real estate: | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 1,659 |
Business Activities Loans | Commercial real estate: | 60-89 Days Past Due | Construction and land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Business Activities Loans | Commercial real estate: | 60-89 Days Past Due | Other commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 1,659 |
Business Activities Loans | Commercial real estate: | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,725 | 5,702 |
Business Activities Loans | Commercial real estate: | 90 Days or Greater Past Due | Construction and land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 637 |
Business Activities Loans | Commercial real estate: | 90 Days or Greater Past Due | Other commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,725 | 5,065 |
Business Activities Loans | Commercial and industrial: | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 953 | 1,616 |
Current | 312,709 | 266,388 |
Total loans | 313,662 | 268,004 |
Past Due 90 days and Accruing | 50 | 176 |
Business Activities Loans | Commercial and industrial: | Other Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 857 | 1,217 |
Current | 233,900 | 196,834 |
Total loans | 234,757 | 198,051 |
Past Due 90 days and Accruing | 50 | 21 |
Business Activities Loans | Commercial and industrial: | Agricultural | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 96 | 399 |
Current | 22,221 | 27,189 |
Total loans | 22,317 | 27,588 |
Past Due 90 days and Accruing | 0 | 155 |
Business Activities Loans | Commercial and industrial: | Tax exempt | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 56,588 | 42,365 |
Total loans | 56,588 | 42,365 |
Past Due 90 days and Accruing | 0 | 0 |
Business Activities Loans | Commercial and industrial: | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 460 | 228 |
Business Activities Loans | Commercial and industrial: | 30-59 Days Past Due | Other Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 395 | 186 |
Business Activities Loans | Commercial and industrial: | 30-59 Days Past Due | Agricultural | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 65 | 42 |
Business Activities Loans | Commercial and industrial: | 30-59 Days Past Due | Tax exempt | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Business Activities Loans | Commercial and industrial: | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 66 | 488 |
Business Activities Loans | Commercial and industrial: | 60-89 Days Past Due | Other Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 60 | 329 |
Business Activities Loans | Commercial and industrial: | 60-89 Days Past Due | Agricultural | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6 | 159 |
Business Activities Loans | Commercial and industrial: | 60-89 Days Past Due | Tax exempt | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Business Activities Loans | Commercial and industrial: | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 427 | 900 |
Business Activities Loans | Commercial and industrial: | 90 Days or Greater Past Due | Other Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 402 | 702 |
Business Activities Loans | Commercial and industrial: | 90 Days or Greater Past Due | Agricultural | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 25 | 198 |
Business Activities Loans | Commercial and industrial: | 90 Days or Greater Past Due | Tax exempt | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Business Activities Loans | Total commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 8,824 | 9,942 |
Current | 884,572 | 792,073 |
Total loans | 893,396 | 802,015 |
Past Due 90 days and Accruing | 50 | 295 |
Business Activities Loans | Total commercial loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,606 | 1,193 |
Business Activities Loans | Total commercial loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 66 | 2,147 |
Business Activities Loans | Total commercial loans | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7,152 | 6,602 |
Business Activities Loans | Residential real estate: | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,515 | 4,782 |
Current | 664,674 | 586,629 |
Total loans | 670,189 | 591,411 |
Past Due 90 days and Accruing | 0 | 0 |
Business Activities Loans | Residential real estate: | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,515 | 4,782 |
Current | 664,674 | 586,629 |
Total loans | 670,189 | 591,411 |
Past Due 90 days and Accruing | 0 | 0 |
Business Activities Loans | Residential real estate: | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,565 | 3,096 |
Business Activities Loans | Residential real estate: | 30-59 Days Past Due | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,565 | 3,096 |
Business Activities Loans | Residential real estate: | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 641 | 711 |
Business Activities Loans | Residential real estate: | 60-89 Days Past Due | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 641 | 711 |
Business Activities Loans | Residential real estate: | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,309 | 975 |
Business Activities Loans | Residential real estate: | 90 Days or Greater Past Due | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,309 | 975 |
Business Activities Loans | Consumer: | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 100 | 774 |
Current | 67,212 | 58,430 |
Total loans | 67,312 | 59,204 |
Past Due 90 days and Accruing | 0 | 199 |
Business Activities Loans | Consumer: | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 72 | 714 |
Current | 57,826 | 50,662 |
Total loans | 57,898 | 51,376 |
Past Due 90 days and Accruing | 0 | 199 |
Business Activities Loans | Consumer: | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 28 | 60 |
Current | 9,386 | 7,768 |
Total loans | 9,414 | 7,828 |
Past Due 90 days and Accruing | 0 | 0 |
Business Activities Loans | Consumer: | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 89 | 551 |
Business Activities Loans | Consumer: | 30-59 Days Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 72 | 515 |
Business Activities Loans | Consumer: | 30-59 Days Past Due | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 17 | 36 |
Business Activities Loans | Consumer: | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 24 |
Business Activities Loans | Consumer: | 60-89 Days Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Business Activities Loans | Consumer: | 60-89 Days Past Due | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 24 |
Business Activities Loans | Consumer: | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 11 | 199 |
Business Activities Loans | Consumer: | 90 Days or Greater Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 199 |
Business Activities Loans | Consumer: | 90 Days or Greater Past Due | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 11 | 0 |
Acquired Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7,356 | 3,088 |
Current | 10,106 | 12,587 |
Total loans | 859,330 | 1,032,983 |
Past Due 90 days and Accruing | 196 | 16 |
Acquired Loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,414 | 1,406 |
Acquired Loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 379 | 528 |
Acquired Loans | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,563 | 1,154 |
Acquired Loans | Commercial real estate: | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 941 | 822 |
Current | 6,307 | 8,655 |
Total loans | 246,965 | 292,735 |
Past Due 90 days and Accruing | 0 | 0 |
Acquired Loans | Commercial real estate: | Construction and land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 133 |
Current | 164 | 258 |
Total loans | 2,890 | 16,781 |
Past Due 90 days and Accruing | 0 | 0 |
Acquired Loans | Commercial real estate: | Other commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 941 | 689 |
Current | 6,143 | 8,397 |
Total loans | 244,075 | 275,954 |
Past Due 90 days and Accruing | 0 | 0 |
Acquired Loans | Commercial real estate: | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 631 | 402 |
Acquired Loans | Commercial real estate: | 30-59 Days Past Due | Construction and land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 124 |
Acquired Loans | Commercial real estate: | 30-59 Days Past Due | Other commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 631 | 278 |
Acquired Loans | Commercial real estate: | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 99 | 9 |
Acquired Loans | Commercial real estate: | 60-89 Days Past Due | Construction and land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 9 |
Acquired Loans | Commercial real estate: | 60-89 Days Past Due | Other commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 99 | 0 |
Acquired Loans | Commercial real estate: | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 211 | 411 |
Acquired Loans | Commercial real estate: | 90 Days or Greater Past Due | Construction and land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Commercial real estate: | 90 Days or Greater Past Due | Other commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 211 | 411 |
Acquired Loans | Commercial and industrial: | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 669 | 188 |
Current | 679 | 632 |
Total loans | 91,208 | 111,419 |
Past Due 90 days and Accruing | 0 | 0 |
Acquired Loans | Commercial and industrial: | Other Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 669 | 188 |
Current | 679 | 632 |
Total loans | 52,470 | 68,069 |
Past Due 90 days and Accruing | 0 | 0 |
Acquired Loans | Commercial and industrial: | Agricultural | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 0 | 0 |
Total loans | 0 | 0 |
Past Due 90 days and Accruing | 0 | 0 |
Acquired Loans | Commercial and industrial: | Tax exempt | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 0 | 0 |
Total loans | 38,738 | 43,350 |
Past Due 90 days and Accruing | 0 | 0 |
Acquired Loans | Commercial and industrial: | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 149 | 125 |
Acquired Loans | Commercial and industrial: | 30-59 Days Past Due | Other Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 149 | 125 |
Acquired Loans | Commercial and industrial: | 30-59 Days Past Due | Agricultural | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Commercial and industrial: | 30-59 Days Past Due | Tax exempt | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Commercial and industrial: | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 26 | 14 |
Acquired Loans | Commercial and industrial: | 60-89 Days Past Due | Other Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 26 | 14 |
Acquired Loans | Commercial and industrial: | 60-89 Days Past Due | Agricultural | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Commercial and industrial: | 60-89 Days Past Due | Tax exempt | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Commercial and industrial: | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 494 | 49 |
Acquired Loans | Commercial and industrial: | 90 Days or Greater Past Due | Other Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 494 | 49 |
Acquired Loans | Commercial and industrial: | 90 Days or Greater Past Due | Agricultural | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Commercial and industrial: | 90 Days or Greater Past Due | Tax exempt | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Total commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,610 | 1,010 |
Current | 6,986 | 9,287 |
Total loans | 338,173 | 404,154 |
Past Due 90 days and Accruing | 0 | 0 |
Acquired Loans | Total commercial loans | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 780 | 527 |
Acquired Loans | Total commercial loans | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 125 | 23 |
Acquired Loans | Total commercial loans | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 705 | 460 |
Acquired Loans | Residential real estate: | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,465 | 1,754 |
Current | 3,095 | 3,259 |
Total loans | 474,509 | 564,271 |
Past Due 90 days and Accruing | 0 | 0 |
Acquired Loans | Residential real estate: | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,465 | 1,754 |
Current | 3,095 | 3,259 |
Total loans | 474,509 | 564,271 |
Past Due 90 days and Accruing | 0 | 0 |
Acquired Loans | Residential real estate: | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,419 | 752 |
Acquired Loans | Residential real estate: | 30-59 Days Past Due | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,419 | 752 |
Acquired Loans | Residential real estate: | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 254 | 388 |
Acquired Loans | Residential real estate: | 60-89 Days Past Due | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 254 | 388 |
Acquired Loans | Residential real estate: | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,792 | 614 |
Acquired Loans | Residential real estate: | 90 Days or Greater Past Due | Residential mortgages | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,792 | 614 |
Acquired Loans | Consumer: | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 281 | 324 |
Current | 25 | 41 |
Total loans | 46,648 | 64,558 |
Past Due 90 days and Accruing | 196 | 16 |
Acquired Loans | Consumer: | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 264 | 322 |
Current | 22 | 38 |
Total loans | 45,291 | 62,217 |
Past Due 90 days and Accruing | 7 | 16 |
Acquired Loans | Consumer: | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 17 | 2 |
Current | 3 | 3 |
Total loans | 1,357 | 2,341 |
Past Due 90 days and Accruing | 189 | 0 |
Acquired Loans | Consumer: | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 215 | 127 |
Acquired Loans | Consumer: | 30-59 Days Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 198 | 125 |
Acquired Loans | Consumer: | 30-59 Days Past Due | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 17 | 2 |
Acquired Loans | Consumer: | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 117 |
Acquired Loans | Consumer: | 60-89 Days Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 117 |
Acquired Loans | Consumer: | 60-89 Days Past Due | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Acquired Loans | Consumer: | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 66 | 80 |
Acquired Loans | Consumer: | 90 Days or Greater Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 66 | 80 |
Acquired Loans | Consumer: | 90 Days or Greater Past Due | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 0 | $ 0 |
LOANS - Summary Information Per
LOANS - Summary Information Pertaining to Non-accrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Non-accrual loans | ||
Non-accrual loans | $ 18,235 | $ 14,318 |
Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 14,111 | 12,162 |
Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 4,124 | 2,156 |
Commercial real estate: | ||
Non-accrual loans | ||
Non-accrual loans | 8,156 | 8,343 |
Commercial real estate: | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 7,874 | 7,783 |
Commercial real estate: | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 282 | 560 |
Commercial real estate: | Construction and land development | ||
Non-accrual loans | ||
Non-accrual loans | 1 | 637 |
Commercial real estate: | Construction and land development | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1 | 637 |
Commercial real estate: | Construction and land development | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 0 | 0 |
Commercial real estate: | Other commercial real estate | ||
Non-accrual loans | ||
Non-accrual loans | 8,155 | 7,706 |
Commercial real estate: | Other commercial real estate | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 7,873 | 7,146 |
Commercial real estate: | Other commercial real estate | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 282 | 560 |
Commercial and industrial: | ||
Non-accrual loans | ||
Non-accrual loans | 2,331 | 1,209 |
Commercial and industrial: | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1,688 | 746 |
Commercial and industrial: | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 643 | 463 |
Commercial and industrial: | Other Commercial | ||
Non-accrual loans | ||
Non-accrual loans | 2,066 | 1,166 |
Commercial and industrial: | Other Commercial | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 1,423 | 703 |
Commercial and industrial: | Other Commercial | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 643 | 463 |
Commercial and industrial: | Agricultural | ||
Non-accrual loans | ||
Non-accrual loans | 265 | 43 |
Commercial and industrial: | Agricultural | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 265 | 43 |
Commercial and industrial: | Agricultural | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 0 | 0 |
Commercial and industrial: | Tax exempt | ||
Non-accrual loans | ||
Non-accrual loans | 0 | 0 |
Commercial and industrial: | Tax exempt | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 0 | 0 |
Commercial and industrial: | Tax exempt | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 0 | 0 |
Total commercial loans | ||
Non-accrual loans | ||
Non-accrual loans | 10,487 | 9,552 |
Total commercial loans | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 9,562 | 8,529 |
Total commercial loans | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 925 | 1,023 |
Residential real estate: | ||
Non-accrual loans | ||
Non-accrual loans | 7,210 | 4,266 |
Residential real estate: | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 4,213 | 3,408 |
Residential real estate: | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 2,997 | 858 |
Residential real estate: | Residential mortgages | ||
Non-accrual loans | ||
Non-accrual loans | 7,210 | 4,266 |
Residential real estate: | Residential mortgages | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 4,213 | 3,408 |
Residential real estate: | Residential mortgages | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 2,997 | 858 |
Consumer: | ||
Non-accrual loans | ||
Non-accrual loans | 538 | 500 |
Consumer: | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 336 | 225 |
Consumer: | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 202 | 275 |
Consumer: | Home equity | ||
Non-accrual loans | ||
Non-accrual loans | 447 | 347 |
Consumer: | Home equity | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 246 | 130 |
Consumer: | Home equity | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | 201 | 217 |
Consumer: | Other consumer | ||
Non-accrual loans | ||
Non-accrual loans | 91 | 153 |
Consumer: | Other consumer | Business Activities Loans | ||
Non-accrual loans | ||
Non-accrual loans | 90 | 95 |
Consumer: | Other consumer | Acquired Loans | ||
Non-accrual loans | ||
Non-accrual loans | $ 1 | $ 58 |
LOANS - Loans Evaluated for Imp
LOANS - Loans Evaluated for Impairment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Loans receivable: balance at end of period | ||
Total | $ 2,490,227 | $ 2,485,613 |
Commercial real estate | ||
Loans receivable: balance at end of period | ||
Total | 826,699 | 826,746 |
Commercial and industrial | ||
Loans receivable: balance at end of period | ||
Total | 404,870 | 379,423 |
Residential real estate | ||
Loans receivable: balance at end of period | ||
Total | 1,144,698 | 1,155,682 |
Consumer | ||
Loans receivable: balance at end of period | ||
Total | 113,960 | 123,762 |
Business Activities Loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 13,855 | 9,647 |
Collectively evaluated | 1,617,042 | 1,442,983 |
Total | 1,630,897 | 1,452,630 |
Business Activities Loans | Commercial real estate | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 9,835 | 7,604 |
Collectively evaluated | 569,899 | 526,407 |
Total | 579,734 | 534,011 |
Business Activities Loans | Commercial and industrial | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 1,445 | 626 |
Collectively evaluated | 312,217 | 267,378 |
Total | 313,662 | 268,004 |
Business Activities Loans | Residential real estate | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 2,562 | 1,404 |
Collectively evaluated | 667,627 | 590,007 |
Total | 670,189 | 591,411 |
Business Activities Loans | Consumer | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 13 | 13 |
Collectively evaluated | 67,299 | 59,191 |
Total | 67,312 | 59,204 |
Acquired Loans | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 1,358 | 1,146 |
Purchased credit impaired | 10,106 | 12,587 |
Collectively evaluated | 847,866 | 1,019,250 |
Total | 859,330 | 1,032,983 |
Acquired Loans | Commercial real estate | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 188 | 241 |
Purchased credit impaired | 6,307 | 8,655 |
Collectively evaluated | 240,470 | 283,839 |
Total | 246,965 | 292,735 |
Acquired Loans | Commercial and industrial | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 426 | 571 |
Purchased credit impaired | 679 | 632 |
Collectively evaluated | 90,103 | 110,216 |
Total | 91,208 | 111,419 |
Acquired Loans | Residential real estate | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 744 | 271 |
Purchased credit impaired | 3,095 | 3,259 |
Collectively evaluated | 470,670 | 560,741 |
Total | 474,509 | 564,271 |
Acquired Loans | Consumer | ||
Loans receivable: balance at end of period | ||
Individually evaluated for impairment | 0 | 63 |
Purchased credit impaired | 25 | 41 |
Collectively evaluated | 46,623 | 64,454 |
Total | $ 46,648 | $ 64,558 |
LOANS - Summary of Impaired Loa
LOANS - Summary of Impaired Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Business Activities Loans | ||
Recorded Investment | ||
Total | $ 13,855 | $ 9,647 |
Unpaid Principal Balance | ||
Total | 14,124 | 11,653 |
Related Allowance | ||
With an allowance recorded: | 611 | 459 |
Business Activities Loans | Commercial real estate: | ||
Recorded Investment | ||
Total | 9,835 | 7,604 |
Unpaid Principal Balance | ||
Total | 9,962 | 9,598 |
Related Allowance | ||
With an allowance recorded: | 422 | 447 |
Business Activities Loans | Commercial real estate: | Construction and land development | ||
Recorded Investment | ||
With no related allowance: | 0 | 0 |
With an allowance recorded: | 1 | 637 |
Unpaid Principal Balance | ||
With no related allowance: | 0 | 0 |
With an allowance recorded: | 1 | 2,563 |
Related Allowance | ||
With an allowance recorded: | 1 | 59 |
Business Activities Loans | Commercial real estate: | Other commercial real estate | ||
Recorded Investment | ||
With no related allowance: | 8,209 | 5,896 |
With an allowance recorded: | 1,625 | 1,071 |
Unpaid Principal Balance | ||
With no related allowance: | 8,301 | 5,903 |
With an allowance recorded: | 1,660 | 1,132 |
Related Allowance | ||
With an allowance recorded: | 421 | 388 |
Business Activities Loans | Commercial and industrial: | ||
Recorded Investment | ||
Total | 1,445 | 626 |
Unpaid Principal Balance | ||
Total | 1,524 | 625 |
Related Allowance | ||
With an allowance recorded: | 78 | 3 |
Business Activities Loans | Commercial and industrial: | Other Commercial | ||
Recorded Investment | ||
With no related allowance: | 649 | 218 |
With an allowance recorded: | 796 | 408 |
Unpaid Principal Balance | ||
With no related allowance: | 669 | 217 |
With an allowance recorded: | 855 | 408 |
Related Allowance | ||
With an allowance recorded: | 78 | 3 |
Business Activities Loans | Commercial and industrial: | Agricultural | ||
Recorded Investment | ||
With no related allowance: | 0 | 0 |
With an allowance recorded: | 0 | 0 |
Unpaid Principal Balance | ||
With no related allowance: | 0 | 0 |
With an allowance recorded: | 0 | 0 |
Related Allowance | ||
With an allowance recorded: | 0 | 0 |
Business Activities Loans | Commercial and industrial: | Tax exempt | ||
Recorded Investment | ||
With no related allowance: | 0 | 0 |
With an allowance recorded: | 0 | 0 |
Unpaid Principal Balance | ||
With no related allowance: | 0 | 0 |
With an allowance recorded: | 0 | 0 |
Related Allowance | ||
With an allowance recorded: | 0 | 0 |
Business Activities Loans | Residential real estate: | ||
Recorded Investment | ||
Total | 2,562 | 1,404 |
Unpaid Principal Balance | ||
Total | 2,625 | 1,417 |
Related Allowance | ||
With an allowance recorded: | 111 | 9 |
Business Activities Loans | Residential real estate: | Residential mortgages | ||
Recorded Investment | ||
With no related allowance: | 1,671 | 1,247 |
With an allowance recorded: | 891 | 157 |
Unpaid Principal Balance | ||
With no related allowance: | 1,709 | 1,260 |
With an allowance recorded: | 916 | 157 |
Related Allowance | ||
With an allowance recorded: | 111 | 9 |
Business Activities Loans | Consumer: | ||
Recorded Investment | ||
Total | 13 | 13 |
Unpaid Principal Balance | ||
Total | 13 | 13 |
Related Allowance | ||
With an allowance recorded: | 0 | 0 |
Business Activities Loans | Consumer: | Home equity | ||
Recorded Investment | ||
With no related allowance: | 0 | 13 |
With an allowance recorded: | 13 | 0 |
Unpaid Principal Balance | ||
With no related allowance: | 0 | 13 |
With an allowance recorded: | 13 | 0 |
Related Allowance | ||
With an allowance recorded: | 0 | 0 |
Business Activities Loans | Consumer: | Other consumer | ||
Recorded Investment | ||
With no related allowance: | 0 | 0 |
With an allowance recorded: | 0 | 0 |
Unpaid Principal Balance | ||
With no related allowance: | 0 | 0 |
With an allowance recorded: | 0 | 0 |
Related Allowance | ||
With an allowance recorded: | 0 | 0 |
Acquired Loans | ||
Recorded Investment | ||
Total | 1,358 | 1,146 |
Unpaid Principal Balance | ||
Total | 1,600 | 1,370 |
Related Allowance | ||
With an allowance recorded: | 41 | 0 |
Acquired Loans | Commercial real estate: | ||
Recorded Investment | ||
Total | 188 | 241 |
Unpaid Principal Balance | ||
Total | 187 | 352 |
Related Allowance | ||
With an allowance recorded: | 0 | 0 |
Acquired Loans | Commercial real estate: | Construction and land development | ||
Recorded Investment | ||
With no related allowance: | 0 | 0 |
With an allowance recorded: | 0 | 0 |
Unpaid Principal Balance | ||
With no related allowance: | 0 | 0 |
Acquired Loans | Commercial real estate: | Other commercial real estate | ||
Recorded Investment | ||
With no related allowance: | 188 | 241 |
With an allowance recorded: | 0 | 0 |
Unpaid Principal Balance | ||
With no related allowance: | 187 | 352 |
With an allowance recorded: | 0 | 0 |
Related Allowance | ||
With an allowance recorded: | 0 | 0 |
Acquired Loans | Commercial and industrial: | ||
Recorded Investment | ||
Total | 426 | 571 |
Unpaid Principal Balance | ||
Total | 510 | 584 |
Related Allowance | ||
With an allowance recorded: | 0 | 0 |
Acquired Loans | Commercial and industrial: | Other Commercial | ||
Recorded Investment | ||
With no related allowance: | 426 | 571 |
With an allowance recorded: | 0 | |
Unpaid Principal Balance | ||
With no related allowance: | 510 | 584 |
With an allowance recorded: | 0 | 0 |
Related Allowance | ||
With an allowance recorded: | 0 | 0 |
Acquired Loans | Commercial and industrial: | Agricultural | ||
Recorded Investment | ||
With no related allowance: | 0 | 0 |
With an allowance recorded: | 0 | 0 |
Unpaid Principal Balance | ||
With no related allowance: | 0 | 0 |
With an allowance recorded: | 0 | 0 |
Related Allowance | ||
With an allowance recorded: | 0 | 0 |
Acquired Loans | Commercial and industrial: | Tax exempt | ||
Recorded Investment | ||
With no related allowance: | 0 | 0 |
With an allowance recorded: | 0 | 0 |
Unpaid Principal Balance | ||
With no related allowance: | 0 | 0 |
With an allowance recorded: | 0 | 0 |
Related Allowance | ||
With an allowance recorded: | 0 | 0 |
Acquired Loans | Residential real estate: | ||
Recorded Investment | ||
Total | 744 | 271 |
Unpaid Principal Balance | ||
Total | 903 | 278 |
Related Allowance | ||
With an allowance recorded: | 41 | 0 |
Acquired Loans | Residential real estate: | Residential mortgages | ||
Recorded Investment | ||
With no related allowance: | 375 | 271 |
With an allowance recorded: | 369 | 0 |
Unpaid Principal Balance | ||
With no related allowance: | 524 | 278 |
With an allowance recorded: | 379 | 0 |
Related Allowance | ||
With an allowance recorded: | 41 | 0 |
Acquired Loans | Consumer: | ||
Recorded Investment | ||
Total | 0 | 63 |
Unpaid Principal Balance | ||
Total | 0 | 156 |
Related Allowance | ||
With an allowance recorded: | 0 | 0 |
Acquired Loans | Consumer: | Home equity | ||
Recorded Investment | ||
With no related allowance: | 0 | 63 |
With an allowance recorded: | 0 | 0 |
Unpaid Principal Balance | ||
With no related allowance: | 0 | 156 |
With an allowance recorded: | 0 | 0 |
Related Allowance | ||
With an allowance recorded: | 0 | 0 |
Acquired Loans | Consumer: | Other consumer | ||
Recorded Investment | ||
With no related allowance: | 0 | 0 |
With an allowance recorded: | 0 | 0 |
Unpaid Principal Balance | ||
With no related allowance: | 0 | 0 |
With an allowance recorded: | 0 | 0 |
Related Allowance | ||
With an allowance recorded: | $ 0 | $ 0 |
LOANS - Average Recorded Invest
LOANS - Average Recorded Investment and Interest Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Activities Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | $ 11,920 | $ 6,924 |
Interest Income Recognized | 135 | 121 |
Business Activities Loans | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 8,019 | 3,913 |
Interest Income Recognized | 77 | 66 |
Business Activities Loans | Commercial real estate | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 0 | 0 |
Cash basis interest income recognized, with no related allowance | 0 | 0 |
Recorded investment, with related allowance | 1 | 637 |
Cash basis interest income recognized, with related allowance | 0 | 0 |
Business Activities Loans | Commercial real estate | Other commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 6,878 | 2,541 |
Cash basis interest income recognized, with no related allowance | 77 | 66 |
Recorded investment, with related allowance | 1,140 | 735 |
Cash basis interest income recognized, with related allowance | 0 | 0 |
Business Activities Loans | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 1,369 | 600 |
Interest Income Recognized | 9 | 8 |
Business Activities Loans | Commercial and industrial | Other Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 634 | 382 |
Cash basis interest income recognized, with no related allowance | 9 | 6 |
Recorded investment, with related allowance | 735 | 105 |
Cash basis interest income recognized, with related allowance | 0 | 1 |
Business Activities Loans | Commercial and industrial | Agricultural | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 0 | 113 |
Cash basis interest income recognized, with no related allowance | 0 | 1 |
Recorded investment, with related allowance | 0 | 0 |
Cash basis interest income recognized, with related allowance | 0 | 0 |
Business Activities Loans | Commercial and industrial | Tax exempt | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 0 | 0 |
Cash basis interest income recognized, with no related allowance | 0 | 0 |
Recorded investment, with related allowance | 0 | 0 |
Cash basis interest income recognized, with related allowance | 0 | 0 |
Business Activities Loans | Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 2,519 | 2,331 |
Interest Income Recognized | 48 | 44 |
Business Activities Loans | Residential real estate | Residential mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 1,693 | 2,174 |
Cash basis interest income recognized, with no related allowance | 39 | 39 |
Recorded investment, with related allowance | 826 | 157 |
Cash basis interest income recognized, with related allowance | 9 | 5 |
Business Activities Loans | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 13 | 80 |
Interest Income Recognized | 1 | 3 |
Business Activities Loans | Consumer | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 0 | 27 |
Cash basis interest income recognized, with no related allowance | 0 | 0 |
Recorded investment, with related allowance | 13 | 0 |
Cash basis interest income recognized, with related allowance | 1 | 0 |
Business Activities Loans | Consumer | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 0 | 53 |
Cash basis interest income recognized, with no related allowance | 0 | 3 |
Recorded investment, with related allowance | 0 | 0 |
Cash basis interest income recognized, with related allowance | 0 | 0 |
Acquired Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 1,213 | 598 |
Interest Income Recognized | 5 | 2 |
Acquired Loans | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 112 | 136 |
Interest Income Recognized | 1 | 0 |
Acquired Loans | Commercial real estate | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 0 | 0 |
Cash basis interest income recognized, with no related allowance | 0 | 0 |
Recorded investment, with related allowance | 0 | 0 |
Cash basis interest income recognized, with related allowance | 0 | 0 |
Acquired Loans | Commercial real estate | Other commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 112 | 136 |
Cash basis interest income recognized, with no related allowance | 1 | 0 |
Recorded investment, with related allowance | 0 | 0 |
Cash basis interest income recognized, with related allowance | 0 | 0 |
Acquired Loans | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 441 | 264 |
Interest Income Recognized | 1 | 1 |
Acquired Loans | Commercial and industrial | Other Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 441 | 264 |
Cash basis interest income recognized, with no related allowance | 1 | 1 |
Recorded investment, with related allowance | 0 | 0 |
Cash basis interest income recognized, with related allowance | 0 | 0 |
Acquired Loans | Commercial and industrial | Agricultural | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 0 | 0 |
Cash basis interest income recognized, with no related allowance | 0 | 0 |
Recorded investment, with related allowance | 0 | 0 |
Cash basis interest income recognized, with related allowance | 0 | 0 |
Acquired Loans | Commercial and industrial | Tax exempt | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 0 | 0 |
Cash basis interest income recognized, with no related allowance | 0 | 0 |
Recorded investment, with related allowance | 0 | 0 |
Cash basis interest income recognized, with related allowance | 0 | 0 |
Acquired Loans | Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 660 | 140 |
Interest Income Recognized | 3 | 1 |
Acquired Loans | Residential real estate | Residential mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 442 | 140 |
Cash basis interest income recognized, with no related allowance | 0 | 1 |
Recorded investment, with related allowance | 218 | 0 |
Cash basis interest income recognized, with related allowance | 3 | 0 |
Acquired Loans | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 0 | 58 |
Interest Income Recognized | 0 | 0 |
Acquired Loans | Consumer | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 0 | 58 |
Cash basis interest income recognized, with no related allowance | 0 | 0 |
Recorded investment, with related allowance | 0 | 0 |
Cash basis interest income recognized, with related allowance | 0 | 0 |
Acquired Loans | Consumer | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average recorded investment, with no related allowance | 0 | 0 |
Cash basis interest income recognized, with no related allowance | 0 | 0 |
Recorded investment, with related allowance | 0 | 0 |
Cash basis interest income recognized, with related allowance | $ 0 | $ 0 |
LOANS - Recorded Investment and
LOANS - Recorded Investment and Number of Modifications (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)modification | Dec. 31, 2017USD ($)modification | Dec. 31, 2016USD ($)modification | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Modifications (in modification) | modification | 41 | 18 | 13 |
Pre-Modification Outstanding Recorded Investment | $ 6,081 | $ 1,713 | $ 1,537 |
Post-Modification Outstanding Recorded Investment | 4,914 | 1,504 | 1,457 |
Individually evaluated for impairment | 354 | $ 0 | $ 9 |
Loan relationships having aggregate balances in excess of threshold with potential credit weakness | $ 150 | ||
Commercial real estate: | Construction and land development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Modifications (in modification) | modification | 1 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 1 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | 1 | 0 | 0 |
Individually evaluated for impairment | $ 1 | $ 0 | $ 0 |
Commercial real estate: | Other commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Modifications (in modification) | modification | 9 | 6 | 6 |
Pre-Modification Outstanding Recorded Investment | $ 1,896 | $ 388 | $ 1,459 |
Post-Modification Outstanding Recorded Investment | 1,564 | 222 | 1,354 |
Individually evaluated for impairment | $ 153 | $ 0 | $ 0 |
Commercial and industrial | Other Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Modifications (in modification) | modification | 7 | 6 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 556 | $ 563 | $ 38 |
Post-Modification Outstanding Recorded Investment | 486 | 545 | 48 |
Individually evaluated for impairment | $ 55 | $ 0 | $ 0 |
Commercial and industrial | Agricultural | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Modifications (in modification) | modification | 1 | 1 | 3 |
Pre-Modification Outstanding Recorded Investment | $ 167 | $ 19 | $ 29 |
Post-Modification Outstanding Recorded Investment | 0 | 18 | 44 |
Individually evaluated for impairment | $ 0 | $ 0 | $ 0 |
Commercial and industrial | Tax exempt | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Modifications (in modification) | modification | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 |
Individually evaluated for impairment | $ 0 | $ 0 | $ 0 |
Residential real estate | Residential mortgages | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Modifications (in modification) | modification | 19 | 3 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 3,348 | $ 692 | $ 0 |
Post-Modification Outstanding Recorded Investment | 2,752 | 670 | 0 |
Individually evaluated for impairment | $ 145 | $ 0 | $ 0 |
Consumer | Home equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Modifications (in modification) | modification | 1 | 1 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 100 | $ 13 | $ 0 |
Post-Modification Outstanding Recorded Investment | 100 | 13 | 0 |
Individually evaluated for impairment | $ 0 | $ 0 | $ 0 |
Consumer | Other consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Modifications (in modification) | modification | 3 | 1 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 13 | $ 38 | $ 11 |
Post-Modification Outstanding Recorded Investment | 11 | 36 | 11 |
Individually evaluated for impairment | $ 0 | $ 0 | $ 9 |
Interest Rate And Maturity Concession | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Modifications (in modification) | modification | 1 | 6 | 6 |
Post-Modification Outstanding Recorded Investment | $ 16 | $ 725 | $ 440 |
Amortization And Maturity Concession | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Modifications (in modification) | modification | 1 | 6 | 0 |
Post-Modification Outstanding Recorded Investment | $ 286 | $ 490 | $ 0 |
Amortization Concession | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Modifications (in modification) | modification | 0 | 1 | 4 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 94 | $ 981 |
Amortization, Interest Rate And Maturity Concession | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Modifications (in modification) | modification | 0 | 1 | 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 36 | $ 0 |
Amortization And Interest Rate Concession | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Modifications (in modification) | modification | 0 | 0 | 1 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 9 |
Forbearance | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Modifications (in modification) | modification | 3 | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ 271 | $ 0 | $ 0 |
Forbearance And Interest Only Payments | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Modifications (in modification) | modification | 6 | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ 121 | $ 0 | $ 0 |
Forbearance and Interest Rate Concession | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Modifications (in modification) | modification | 1 | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ 49 | $ 0 | $ 0 |
Forbearance and Maturity Concession | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Modifications (in modification) | modification | 20 | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ 2,030 | $ 0 | $ 0 |
Extended Maturity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Modifications (in modification) | modification | 2 | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ 440 | $ 0 | $ 0 |
Restructure Without Concession | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Modifications (in modification) | modification | 5 | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ 1,419 | $ 0 | $ 0 |
Court Ordered | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Modifications (in modification) | modification | 0 | 0 | 1 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 1 |
Other Concessions | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Modifications (in modification) | modification | 2 | 4 | 1 |
Post-Modification Outstanding Recorded Investment | $ 282 | $ 159 | $ 26 |
LOANS - Loans to Related Partie
LOANS - Loans to Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Beginning balance | $ 10,487 | $ 10,620 |
Changes in composition | 0 | 249 |
New Loans | 0 | 1,124 |
Less: repayments | (2,092) | (1,506) |
Ending balance | $ 8,395 | $ 10,487 |
LOANS - Servicing Rights Activi
LOANS - Servicing Rights Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Balance at beginning of year | $ 3,232 | $ 5 |
Acquired | 0 | 3,417 |
Additions | 99 | 134 |
Amortization | (245) | (324) |
Balance at end of year | $ 3,086 | $ 3,232 |
ALLOWANCE FOR LOAN LOSSES - All
ALLOWANCE FOR LOAN LOSSES - Allowance Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for loan losses | ||||||||||||||
Loan relationships having aggregate balances in excess of threshold with potential credit weakness | $ 150 | |||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at beginning of period | $ 12,325 | $ 12,325 | ||||||||||||
Provision/(releases) for loan losses | $ 572 | $ 643 | $ 770 | 795 | $ 597 | $ 660 | $ 736 | $ 795 | 2,780 | $ 2,788 | $ 979 | |||
Balance at end of period | 13,866 | 12,325 | 13,866 | 12,325 | ||||||||||
Allowance For Loan Losses | ||||||||||||||
Individually evaluated for impairment | 354 | $ 0 | $ 9 | |||||||||||
Total | 13,866 | 12,325 | 12,325 | 12,325 | 12,325 | 13,866 | 12,325 | |||||||
Business Activities Loans | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at beginning of period | 12,153 | 10,419 | 12,153 | 10,419 | 9,439 | |||||||||
Charged-off loans | (1,382) | (701) | (411) | |||||||||||
Recoveries on charged-off loans | 535 | 143 | 412 | |||||||||||
Provision/(releases) for loan losses | 2,275 | 2,292 | 979 | |||||||||||
Balance at end of period | 13,581 | 12,153 | 13,581 | 12,153 | 10,419 | |||||||||
Allowance For Loan Losses | ||||||||||||||
Individually evaluated for impairment | 611 | 459 | 424 | |||||||||||
Collectively evaluated | 12,970 | 11,694 | 9,995 | |||||||||||
Total | 13,581 | 12,153 | 12,153 | 10,419 | 12,153 | 10,419 | 9,439 | 13,581 | 12,153 | 10,419 | ||||
Business Activities Loans | Commercial real estate | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at beginning of period | 6,037 | 5,145 | 6,037 | 5,145 | 4,430 | |||||||||
Charged-off loans | (417) | (124) | (133) | |||||||||||
Recoveries on charged-off loans | 275 | 49 | 40 | |||||||||||
Provision/(releases) for loan losses | 916 | 967 | 808 | |||||||||||
Balance at end of period | 6,811 | 6,037 | 6,811 | 6,037 | 5,145 | |||||||||
Allowance For Loan Losses | ||||||||||||||
Individually evaluated for impairment | 422 | 447 | 193 | |||||||||||
Collectively evaluated | 6,389 | 5,590 | 4,952 | |||||||||||
Total | 6,811 | 6,037 | 6,037 | 5,145 | 6,037 | 5,145 | 4,430 | 6,811 | 6,037 | 5,145 | ||||
Business Activities Loans | Commercial and industrial | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at beginning of period | 2,373 | 1,952 | 2,373 | 1,952 | 1,590 | |||||||||
Charged-off loans | (111) | (189) | (90) | |||||||||||
Recoveries on charged-off loans | 76 | 11 | 289 | |||||||||||
Provision/(releases) for loan losses | 42 | 599 | 163 | |||||||||||
Balance at end of period | 2,380 | 2,373 | 2,380 | 2,373 | 1,952 | |||||||||
Allowance For Loan Losses | ||||||||||||||
Individually evaluated for impairment | 78 | 3 | 173 | |||||||||||
Collectively evaluated | 2,302 | 2,370 | 1,779 | |||||||||||
Total | 2,380 | 2,373 | 2,373 | 1,952 | 2,373 | 1,952 | 1,590 | 2,380 | 2,373 | 1,952 | ||||
Business Activities Loans | Residential real estate | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at beginning of period | 3,357 | 2,721 | 3,357 | 2,721 | 2,747 | |||||||||
Charged-off loans | (225) | (226) | (141) | |||||||||||
Recoveries on charged-off loans | 166 | 65 | 44 | |||||||||||
Provision/(releases) for loan losses | 684 | 797 | 71 | |||||||||||
Balance at end of period | 3,982 | 3,357 | 3,982 | 3,357 | 2,721 | |||||||||
Allowance For Loan Losses | ||||||||||||||
Individually evaluated for impairment | 111 | 9 | 49 | |||||||||||
Collectively evaluated | 3,871 | 3,348 | 2,672 | |||||||||||
Total | 3,982 | 3,357 | 3,357 | 2,721 | 3,357 | 2,721 | 2,747 | 3,982 | 3,357 | 2,721 | ||||
Business Activities Loans | Consumer | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at beginning of period | 386 | 601 | 386 | 601 | 672 | |||||||||
Charged-off loans | (629) | (162) | (47) | |||||||||||
Recoveries on charged-off loans | 18 | 18 | 39 | |||||||||||
Provision/(releases) for loan losses | 633 | (71) | (63) | |||||||||||
Balance at end of period | 408 | 386 | 408 | 386 | 601 | |||||||||
Allowance For Loan Losses | ||||||||||||||
Individually evaluated for impairment | 0 | 0 | 9 | |||||||||||
Collectively evaluated | 408 | 386 | 592 | |||||||||||
Total | 408 | 386 | 386 | 601 | 386 | 601 | 672 | 408 | 386 | 601 | ||||
Acquired Loans | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at beginning of period | 172 | 0 | 172 | 0 | ||||||||||
Charged-off loans | (525) | (325) | ||||||||||||
Recoveries on charged-off loans | 133 | 1 | ||||||||||||
Provision/(releases) for loan losses | 505 | 496 | ||||||||||||
Balance at end of period | 285 | 172 | 285 | 172 | 0 | |||||||||
Allowance For Loan Losses | ||||||||||||||
Individually evaluated for impairment | 41 | 0 | ||||||||||||
Collectively evaluated | 244 | 172 | ||||||||||||
Total | 285 | 172 | 172 | 0 | 172 | 0 | 0 | 285 | 172 | 0 | ||||
Acquired Loans | Commercial real estate | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at beginning of period | 97 | 0 | 97 | 0 | ||||||||||
Charged-off loans | (136) | (151) | ||||||||||||
Recoveries on charged-off loans | 43 | 1 | ||||||||||||
Provision/(releases) for loan losses | 169 | 247 | ||||||||||||
Balance at end of period | 173 | 97 | 173 | 97 | 0 | |||||||||
Allowance For Loan Losses | ||||||||||||||
Individually evaluated for impairment | 0 | 0 | ||||||||||||
Collectively evaluated | 173 | 97 | ||||||||||||
Total | 173 | 97 | 97 | 0 | 97 | 0 | 0 | 173 | 97 | 0 | ||||
Acquired Loans | Commercial and industrial | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at beginning of period | 16 | 0 | 16 | 0 | ||||||||||
Charged-off loans | (166) | (18) | ||||||||||||
Recoveries on charged-off loans | 7 | 0 | ||||||||||||
Provision/(releases) for loan losses | 178 | 34 | ||||||||||||
Balance at end of period | 35 | 16 | 35 | 16 | 0 | |||||||||
Allowance For Loan Losses | ||||||||||||||
Individually evaluated for impairment | 0 | 0 | ||||||||||||
Collectively evaluated | 35 | 16 | ||||||||||||
Total | 35 | 16 | 16 | 0 | 16 | 0 | 0 | 35 | 16 | 0 | ||||
Acquired Loans | Residential real estate | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at beginning of period | 59 | 0 | 59 | 0 | ||||||||||
Charged-off loans | (158) | (29) | ||||||||||||
Recoveries on charged-off loans | 0 | 0 | ||||||||||||
Provision/(releases) for loan losses | 176 | 88 | ||||||||||||
Balance at end of period | 77 | 59 | 77 | 59 | 0 | |||||||||
Allowance For Loan Losses | ||||||||||||||
Individually evaluated for impairment | 41 | 0 | ||||||||||||
Collectively evaluated | 36 | 59 | ||||||||||||
Total | 77 | 59 | 59 | 0 | 59 | 0 | 0 | 77 | 59 | 0 | ||||
Acquired Loans | Consumer | ||||||||||||||
Activity in the allowance for loan losses | ||||||||||||||
Balance at beginning of period | 0 | 0 | 0 | 0 | ||||||||||
Charged-off loans | (65) | (127) | ||||||||||||
Recoveries on charged-off loans | 83 | 0 | ||||||||||||
Provision/(releases) for loan losses | (18) | 127 | ||||||||||||
Balance at end of period | 0 | 0 | 0 | 0 | 0 | |||||||||
Allowance For Loan Losses | ||||||||||||||
Individually evaluated for impairment | 0 | 0 | ||||||||||||
Collectively evaluated | 0 | 0 | ||||||||||||
Total | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
ALLOWANCE FOR LOAN LOSSES - Loa
ALLOWANCE FOR LOAN LOSSES - Loans by Credit Risk Rating (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Credit quality information | ||
Total loans | $ 2,490,227 | $ 2,485,613 |
Non Accrual | ||
Credit quality information | ||
Total loans | 18,235 | 14,296 |
Special mention | ||
Credit quality information | ||
Total loans | 21,736 | 16,360 |
Substandard | ||
Credit quality information | ||
Total loans | 15,797 | 18,117 |
Total classified | ||
Credit quality information | ||
Total loans | 34,032 | 32,413 |
Total Criticized | ||
Credit quality information | ||
Total loans | 55,768 | 48,773 |
Doubtful | ||
Credit quality information | ||
Total loans | 0 | 0 |
Acquired Loans | ||
Credit quality information | ||
Total loans | 859,330 | 1,032,983 |
Acquired Loans | Non Accrual | ||
Credit quality information | ||
Total loans | 4,124 | 2,156 |
Acquired Loans | Special mention | ||
Credit quality information | ||
Total loans | 6,399 | 8,428 |
Acquired Loans | Substandard | ||
Credit quality information | ||
Total loans | 7,987 | 7,833 |
Acquired Loans | Total classified | ||
Credit quality information | ||
Total loans | 12,111 | 9,989 |
Acquired Loans | Total Criticized | ||
Credit quality information | ||
Total loans | 18,510 | 18,417 |
Acquired Loans | Doubtful | ||
Credit quality information | ||
Total loans | 0 | 0 |
Acquired Loans | Residential Real Estate And Consumer | ||
Credit quality information | ||
Financing receivable, net | 521,157 | 628,829 |
Acquired Loans | Residential Real Estate And Consumer | Residential mortgages | ||
Credit quality information | ||
Financing receivable, net | 474,509 | 564,271 |
Acquired Loans | Residential Real Estate And Consumer | Home equity | ||
Credit quality information | ||
Financing receivable, net | 45,291 | 62,217 |
Acquired Loans | Residential Real Estate And Consumer | Other consumer | ||
Credit quality information | ||
Financing receivable, net | 1,357 | 2,341 |
Acquired Loans | Commercial real estate | ||
Credit quality information | ||
Total loans | 246,965 | 292,735 |
Acquired Loans | Commercial real estate | Pass | ||
Credit quality information | ||
Total loans | 239,019 | 283,000 |
Acquired Loans | Commercial real estate | Special mention | ||
Credit quality information | ||
Total loans | 1,574 | 2,675 |
Acquired Loans | Commercial real estate | Substandard | ||
Credit quality information | ||
Total loans | 6,273 | 7,060 |
Acquired Loans | Commercial real estate | Doubtful | ||
Credit quality information | ||
Total loans | 99 | 0 |
Acquired Loans | Commercial real estate | Construction and land development | ||
Credit quality information | ||
Total loans | 2,890 | 16,781 |
Acquired Loans | Commercial real estate | Construction and land development | Pass | ||
Credit quality information | ||
Total loans | 2,626 | 16,523 |
Acquired Loans | Commercial real estate | Construction and land development | Special mention | ||
Credit quality information | ||
Total loans | 0 | 235 |
Acquired Loans | Commercial real estate | Construction and land development | Substandard | ||
Credit quality information | ||
Total loans | 264 | 23 |
Acquired Loans | Commercial real estate | Construction and land development | Doubtful | ||
Credit quality information | ||
Total loans | 0 | 0 |
Acquired Loans | Commercial real estate | Other commercial real estate | ||
Credit quality information | ||
Total loans | 244,075 | 275,954 |
Acquired Loans | Commercial real estate | Other commercial real estate | Pass | ||
Credit quality information | ||
Total loans | 236,393 | 266,477 |
Acquired Loans | Commercial real estate | Other commercial real estate | Special mention | ||
Credit quality information | ||
Total loans | 1,574 | 2,440 |
Acquired Loans | Commercial real estate | Other commercial real estate | Substandard | ||
Credit quality information | ||
Total loans | 6,009 | 7,037 |
Acquired Loans | Commercial real estate | Other commercial real estate | Doubtful | ||
Credit quality information | ||
Total loans | 99 | 0 |
Acquired Loans | Commercial and industrial | ||
Credit quality information | ||
Total loans | 91,208 | 111,419 |
Acquired Loans | Commercial and industrial | Pass | ||
Credit quality information | ||
Total loans | 84,858 | 103,650 |
Acquired Loans | Commercial and industrial | Special mention | ||
Credit quality information | ||
Total loans | 4,825 | 5,753 |
Acquired Loans | Commercial and industrial | Substandard | ||
Credit quality information | ||
Total loans | 1,222 | 2,016 |
Acquired Loans | Commercial and industrial | Doubtful | ||
Credit quality information | ||
Total loans | 303 | 0 |
Acquired Loans | Commercial and industrial | Other Commercial | ||
Credit quality information | ||
Total loans | 52,470 | 68,069 |
Acquired Loans | Commercial and industrial | Other Commercial | Pass | ||
Credit quality information | ||
Total loans | 46,120 | 60,300 |
Acquired Loans | Commercial and industrial | Other Commercial | Special mention | ||
Credit quality information | ||
Total loans | 4,825 | 5,753 |
Acquired Loans | Commercial and industrial | Other Commercial | Substandard | ||
Credit quality information | ||
Total loans | 1,222 | 2,016 |
Acquired Loans | Commercial and industrial | Other Commercial | Doubtful | ||
Credit quality information | ||
Total loans | 303 | 0 |
Acquired Loans | Commercial and industrial | Agricultural | ||
Credit quality information | ||
Total loans | 0 | 0 |
Acquired Loans | Commercial and industrial | Agricultural | Pass | ||
Credit quality information | ||
Total loans | 0 | 0 |
Acquired Loans | Commercial and industrial | Agricultural | Special mention | ||
Credit quality information | ||
Total loans | 0 | 0 |
Acquired Loans | Commercial and industrial | Agricultural | Substandard | ||
Credit quality information | ||
Total loans | 0 | 0 |
Acquired Loans | Commercial and industrial | Agricultural | Doubtful | ||
Credit quality information | ||
Total loans | 0 | 0 |
Acquired Loans | Commercial and industrial | Tax exempt | ||
Credit quality information | ||
Total loans | 38,738 | 43,350 |
Acquired Loans | Commercial and industrial | Tax exempt | Pass | ||
Credit quality information | ||
Total loans | 38,738 | 43,350 |
Acquired Loans | Commercial and industrial | Tax exempt | Special mention | ||
Credit quality information | ||
Total loans | 0 | 0 |
Acquired Loans | Commercial and industrial | Tax exempt | Substandard | ||
Credit quality information | ||
Total loans | 0 | 0 |
Acquired Loans | Commercial and industrial | Tax exempt | Doubtful | ||
Credit quality information | ||
Total loans | 0 | 0 |
Business Activities Loans | ||
Credit quality information | ||
Total loans | 1,630,897 | 1,452,630 |
Business Activities Loans | Non Accrual | ||
Credit quality information | ||
Total loans | 14,111 | 12,140 |
Business Activities Loans | Special mention | ||
Credit quality information | ||
Total loans | 15,337 | 7,932 |
Business Activities Loans | Substandard | ||
Credit quality information | ||
Total loans | 7,810 | 10,284 |
Business Activities Loans | Total classified | ||
Credit quality information | ||
Total loans | 21,921 | 22,424 |
Business Activities Loans | Total Criticized | ||
Credit quality information | ||
Total loans | 37,258 | 30,356 |
Business Activities Loans | Doubtful | ||
Credit quality information | ||
Total loans | 0 | 0 |
Business Activities Loans | Residential Real Estate And Consumer | ||
Credit quality information | ||
Financing receivable, net | 737,501 | 650,615 |
Business Activities Loans | Residential Real Estate And Consumer | Residential mortgages | ||
Credit quality information | ||
Financing receivable, net | 670,189 | 591,411 |
Business Activities Loans | Residential Real Estate And Consumer | Home equity | ||
Credit quality information | ||
Financing receivable, net | 57,898 | 51,376 |
Business Activities Loans | Residential Real Estate And Consumer | Other consumer | ||
Credit quality information | ||
Financing receivable, net | 9,414 | 7,828 |
Business Activities Loans | Commercial real estate | ||
Credit quality information | ||
Total loans | 579,734 | 534,011 |
Business Activities Loans | Commercial real estate | Pass | ||
Credit quality information | ||
Total loans | 556,066 | 511,891 |
Business Activities Loans | Commercial real estate | Special mention | ||
Credit quality information | ||
Total loans | 8,392 | 5,779 |
Business Activities Loans | Commercial real estate | Substandard | ||
Credit quality information | ||
Total loans | 13,914 | 16,341 |
Business Activities Loans | Commercial real estate | Doubtful | ||
Credit quality information | ||
Total loans | 1,362 | 0 |
Business Activities Loans | Commercial real estate | Construction and land development | ||
Credit quality information | ||
Total loans | 23,754 | 28,892 |
Business Activities Loans | Commercial real estate | Construction and land development | Pass | ||
Credit quality information | ||
Total loans | 23,680 | 28,180 |
Business Activities Loans | Commercial real estate | Construction and land development | Special mention | ||
Credit quality information | ||
Total loans | 73 | 73 |
Business Activities Loans | Commercial real estate | Construction and land development | Substandard | ||
Credit quality information | ||
Total loans | 0 | 639 |
Business Activities Loans | Commercial real estate | Construction and land development | Doubtful | ||
Credit quality information | ||
Total loans | 1 | 0 |
Business Activities Loans | Commercial real estate | Other commercial real estate | ||
Credit quality information | ||
Total loans | 555,980 | 505,119 |
Business Activities Loans | Commercial real estate | Other commercial real estate | Pass | ||
Credit quality information | ||
Total loans | 532,386 | 483,711 |
Business Activities Loans | Commercial real estate | Other commercial real estate | Special mention | ||
Credit quality information | ||
Total loans | 8,319 | 5,706 |
Business Activities Loans | Commercial real estate | Other commercial real estate | Substandard | ||
Credit quality information | ||
Total loans | 13,914 | 15,702 |
Business Activities Loans | Commercial real estate | Other commercial real estate | Doubtful | ||
Credit quality information | ||
Total loans | 1,361 | 0 |
Business Activities Loans | Commercial and industrial | ||
Credit quality information | ||
Total loans | 313,662 | 268,004 |
Business Activities Loans | Commercial and industrial | Pass | ||
Credit quality information | ||
Total loans | 304,621 | 263,401 |
Business Activities Loans | Commercial and industrial | Special mention | ||
Credit quality information | ||
Total loans | 6,945 | 2,153 |
Business Activities Loans | Commercial and industrial | Substandard | ||
Credit quality information | ||
Total loans | 1,346 | 2,450 |
Business Activities Loans | Commercial and industrial | Doubtful | ||
Credit quality information | ||
Total loans | 750 | 0 |
Business Activities Loans | Commercial and industrial | Other Commercial | ||
Credit quality information | ||
Total loans | 234,757 | 198,051 |
Business Activities Loans | Commercial and industrial | Other Commercial | Pass | ||
Credit quality information | ||
Total loans | 226,353 | 194,147 |
Business Activities Loans | Commercial and industrial | Other Commercial | Special mention | ||
Credit quality information | ||
Total loans | 6,730 | 1,933 |
Business Activities Loans | Commercial and industrial | Other Commercial | Substandard | ||
Credit quality information | ||
Total loans | 924 | 1,971 |
Business Activities Loans | Commercial and industrial | Other Commercial | Doubtful | ||
Credit quality information | ||
Total loans | 750 | 0 |
Business Activities Loans | Commercial and industrial | Agricultural | ||
Credit quality information | ||
Total loans | 22,317 | 27,588 |
Business Activities Loans | Commercial and industrial | Agricultural | Pass | ||
Credit quality information | ||
Total loans | 21,680 | 27,046 |
Business Activities Loans | Commercial and industrial | Agricultural | Special mention | ||
Credit quality information | ||
Total loans | 215 | 63 |
Business Activities Loans | Commercial and industrial | Agricultural | Substandard | ||
Credit quality information | ||
Total loans | 422 | 479 |
Business Activities Loans | Commercial and industrial | Agricultural | Doubtful | ||
Credit quality information | ||
Total loans | 0 | 0 |
Business Activities Loans | Commercial and industrial | Tax exempt | ||
Credit quality information | ||
Total loans | 56,588 | 42,365 |
Business Activities Loans | Commercial and industrial | Tax exempt | Pass | ||
Credit quality information | ||
Total loans | 56,588 | 42,208 |
Business Activities Loans | Commercial and industrial | Tax exempt | Special mention | ||
Credit quality information | ||
Total loans | 0 | 157 |
Business Activities Loans | Commercial and industrial | Tax exempt | Substandard | ||
Credit quality information | ||
Total loans | 0 | 0 |
Business Activities Loans | Commercial and industrial | Tax exempt | Doubtful | ||
Credit quality information | ||
Total loans | 0 | 0 |
Performing Financial Instruments | Acquired Loans | Residential Real Estate And Consumer | ||
Credit quality information | ||
Financing receivable, net | 516,943 | 626,799 |
Performing Financial Instruments | Acquired Loans | Residential Real Estate And Consumer | Residential mortgages | ||
Credit quality information | ||
Financing receivable, net | 470,497 | 562,516 |
Performing Financial Instruments | Acquired Loans | Residential Real Estate And Consumer | Home equity | ||
Credit quality information | ||
Financing receivable, net | 45,090 | 62,000 |
Performing Financial Instruments | Acquired Loans | Residential Real Estate And Consumer | Other consumer | ||
Credit quality information | ||
Financing receivable, net | 1,356 | 2,283 |
Performing Financial Instruments | Business Activities Loans | Residential Real Estate And Consumer | ||
Credit quality information | ||
Financing receivable, net | 732,952 | 646,982 |
Performing Financial Instruments | Business Activities Loans | Residential Real Estate And Consumer | Residential mortgages | ||
Credit quality information | ||
Financing receivable, net | 665,976 | 588,003 |
Performing Financial Instruments | Business Activities Loans | Residential Real Estate And Consumer | Home equity | ||
Credit quality information | ||
Financing receivable, net | 57,652 | 51,246 |
Performing Financial Instruments | Business Activities Loans | Residential Real Estate And Consumer | Other consumer | ||
Credit quality information | ||
Financing receivable, net | 9,324 | 7,733 |
Nonperforming Financial Instruments | Acquired Loans | Residential Real Estate And Consumer | ||
Credit quality information | ||
Financing receivable, net | 4,214 | 2,030 |
Nonperforming Financial Instruments | Acquired Loans | Residential Real Estate And Consumer | Residential mortgages | ||
Credit quality information | ||
Financing receivable, net | 4,012 | 1,755 |
Nonperforming Financial Instruments | Acquired Loans | Residential Real Estate And Consumer | Home equity | ||
Credit quality information | ||
Financing receivable, net | 201 | 217 |
Nonperforming Financial Instruments | Acquired Loans | Residential Real Estate And Consumer | Other consumer | ||
Credit quality information | ||
Financing receivable, net | 1 | 58 |
Nonperforming Financial Instruments | Business Activities Loans | Residential Real Estate And Consumer | ||
Credit quality information | ||
Financing receivable, net | 4,549 | 3,633 |
Nonperforming Financial Instruments | Business Activities Loans | Residential Real Estate And Consumer | Residential mortgages | ||
Credit quality information | ||
Financing receivable, net | 4,213 | 3,408 |
Nonperforming Financial Instruments | Business Activities Loans | Residential Real Estate And Consumer | Home equity | ||
Credit quality information | ||
Financing receivable, net | 246 | 130 |
Nonperforming Financial Instruments | Business Activities Loans | Residential Real Estate And Consumer | Other consumer | ||
Credit quality information | ||
Financing receivable, net | $ 90 | $ 95 |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | $ 64,868 | $ 60,773 | |
Accumulated depreciation | (16,064) | (13,065) | |
Premises and equipment, net | 48,804 | 47,708 | |
Depreciation expense | 3,700 | 3,500 | $ 1,500 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | 4,837 | 4,849 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | $ 50,933 | 48,952 | |
Buildings and improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful live of premises and equipment | 5 years | ||
Buildings and improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful live of premises and equipment | 39 years | ||
Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | $ 9,098 | $ 6,972 | |
Furniture and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful live of premises and equipment | 3 years | ||
Furniture and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful live of premises and equipment | 7 years |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLES - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill, Impairment Loss | $ 0 | $ 0 | $ 0 |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 828,000 | $ 812,000 | $ 92,000 |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 8 years 6 months | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 12 years |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLES - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Balance at beginning of year | $ 100,085 | $ 4,935 |
Acquisition | 0 | 95,150 |
Balance at end of year | $ 100,085 | $ 100,085 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLES - Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 9,505 | $ 9,601 |
Accumulated Amortization | (2,046) | (1,218) |
Net Intangible Assets | 7,459 | 8,383 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
2019 | 827 | |
2020 | 827 | |
2021 | 742 | |
2022 | 734 | |
2023 | 734 | |
and thereafter | 3,595 | |
Core deposit intangible (non-maturity deposits) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 8,586 | 8,585 |
Accumulated Amortization | (1,878) | (1,136) |
Net Intangible Assets | 6,708 | 7,449 |
Customer list and other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 919 | 1,016 |
Accumulated Amortization | (168) | (82) |
Net Intangible Assets | $ 751 | $ 934 |
DEPOSITS - Schedule of Time Dep
DEPOSITS - Schedule of Time Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
Time less than $100,000 | $ 622,478 | $ 579,856 |
Time $100,000 through $250,000 | 193,535 | 167,145 |
Time $250,000 or more | 116,780 | 119,345 |
Total time deposits | 932,793 | 866,346 |
Brokered time deposits | 466,900 | 378,700 |
Reciprocal deposits | $ 52,400 | $ 49,700 |
DEPOSITS - Maturities by Year (
DEPOSITS - Maturities by Year (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
Within 1 year | $ 505,313 | $ 406,295 |
Over 1 year to 2 years | 258,176 | 305,895 |
Over 2 years to 3 years | 123,337 | 115,878 |
Over 3 years to 4 years | 14,494 | 24,459 |
Over 4 years to 5 years | 31,353 | 13,685 |
Over 5 years | 120 | 134 |
Total time deposits | $ 932,793 | $ 866,346 |
BORROWED FUNDS - Narrative (Det
BORROWED FUNDS - Narrative (Details) - USD ($) | Mar. 30, 2014 | Apr. 30, 2008 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 29, 2014 |
Debt Instrument [Line Items] | |||||
Short-term debt | $ 647,894,000 | $ 649,498,000 | |||
Amount | 75,902,000 | 180,223,000 | |||
Financial Guarantee | NHTB Capital Trust III | |||||
Debt Instrument [Line Items] | |||||
Debentures issued by variable interest entities | $ 20,600,000 | ||||
Subordinated debt | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt issued | $ 17,000,000 | ||||
Fixed interest rate | 6.75% | ||||
LIBOR | Financial Guarantee | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin | 2.79% | ||||
Advances from the FHLB | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity on line of credit | 1,000,000 | ||||
Current balance on line of credit | 0 | 0 | |||
Short-term debt | 611,683,000 | 608,792,000 | |||
Amount | 32,929,000 | 137,190,000 | |||
Federal Reserve Bank Advances | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity on line of credit | 118,599,000 | ||||
Short-term debt | 0 | 0 | |||
Federal Home Loan Bank Certificates and Obligations FHLB Callable Advances | |||||
Debt Instrument [Line Items] | |||||
Amount | 0 | 27,000,000 | |||
Federal Home Loan Bank Certificates and Obligations FHLB Amortizing Advances | |||||
Debt Instrument [Line Items] | |||||
Amount | 330,000 | 683,000 | |||
Subordinated borrowings | |||||
Debt Instrument [Line Items] | |||||
Amount | $ 37,973,000 | $ 38,033,000 | |||
Maturity period (in years) | 15 years | ||||
Principal amount of debt issued | $ 5,000,000 | ||||
Earliest callable period without penalties | 5 years | ||||
Effective interest rate | 6.23819% | 5.04% | |||
Subordinated borrowings | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin | 3.45% |
BORROWED FUNDS - Summary of Bor
BORROWED FUNDS - Summary of Borrowed Funds (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Short-term borrowings | ||
Amount | $ 647,894 | $ 649,498 |
Weighted Average Rate | 2.39% | 1.43% |
Long-term borrowings | ||
Amount | $ 75,902 | $ 180,223 |
Weighted Average Rate | 3.99% | 2.47% |
Total borrowings | $ 723,796 | $ 829,721 |
Weighted Average Rate | 2.56% | 1.66% |
Advances from the FHLB | ||
Short-term borrowings | ||
Amount | $ 611,683 | $ 608,792 |
Weighted Average Rate | 2.47% | 1.49% |
Long-term borrowings | ||
Amount | $ 32,929 | $ 137,190 |
Weighted Average Rate | 1.86% | 1.72% |
Other borrowings | ||
Short-term borrowings | ||
Amount | $ 36,211 | $ 40,706 |
Weighted Average Rate | 1.09% | 0.59% |
Subordinated borrowings | ||
Long-term borrowings | ||
Amount | $ 37,973 | $ 38,033 |
Weighted Average Rate | 5.58% | 4.88% |
Junior subordinated borrowings | ||
Long-term borrowings | ||
Amount | $ 5,000 | $ 5,000 |
Weighted Average Rate | 5.96% | 4.89% |
BORROWED FUNDS - Summary of Mat
BORROWED FUNDS - Summary of Maturities of FHLBB (Details) - Fixed rate advances $ in Thousands | Dec. 31, 2018USD ($) |
Amount | |
2019 | $ 611,683 |
2020 | 29,956 |
2021 | 1,648 |
2022 | 0 |
2023 | 1,000 |
2024 and thereafter | 325 |
Total FHLB advances | $ 644,612 |
Weighted Average Rate | |
2019 | 2.47% |
2020 | 1.87% |
2021 | 2.34% |
2022 | 0.00% |
2023 | 0.00% |
2024 and thereafter | 3.97% |
Total FHLB advances | 2.44% |
EMPLOYEE BENEFIT PLANS - Narrat
EMPLOYEE BENEFIT PLANS - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of actuarial loss | $ 333,000 | $ 0 | |
Total 401(k) expense | 1,000,000 | 970,000 | $ 439,000 |
Split-dollar life insurance agreement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued liability | 671,000 | 687,000 | |
Salary continuation agreement expense | 57,000 | (9,000) | |
Certain prior executives and senior officers | Salary continuation agreement | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued liability | 7,300,000 | 8,100,000 | |
Salary continuation agreement expense | 752,000 | 581,000 | |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
After tax components of accumulated other comprehensive loss, not yet recognized in net periodic pension cost | 573,000 | ||
Expected cash contributions | 0 | ||
Expected amortization from accumulated other comprehensive loss into net periodic pension cost | $ 0 | ||
Pension Plans | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation | 48.00% | ||
Pension Plans | Fixed-income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation | 52.00% | ||
Non-qualified Supplemental Executive Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of actuarial loss | $ (142,000) | 16,000 | |
After tax components of accumulated other comprehensive loss, not yet recognized in net periodic pension cost | 317,000 | ||
Expected amortization from accumulated other comprehensive loss into net periodic pension cost | 15,000 | ||
Actuarial loss (gain) | $ (585,000) | $ (590,000) |
EMPLOYEE BENEFIT PLANS - Change
EMPLOYEE BENEFIT PLANS - Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Change in fair value of plan assets: | ||
Fair value of plan assets at beginning of year | $ 11,026 | $ 10,622 |
Fair value of plan assets at end of year | 11,026 | |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | (481) | 1,022 |
Change in projected benefit obligation: | ||
Projected benefit obligation at beginning of year | 9,020 | 8,642 |
Service cost | 0 | 0 |
Interest cost | 315 | 334 |
Actuarial (gain) loss | (771) | 662 |
Benefits paid | (291) | (269) |
Settlements | (264) | (349) |
Projected benefit obligation at end of year | 8,009 | 9,020 |
Change in fair value of plan assets: | ||
Fair value of plan assets at beginning of year | 11,026 | |
Expected return on plan assets | 706 | 706 |
Contributions by employer | 0 | 0 |
Benefits paid | (291) | (269) |
Settlements | (264) | (349) |
Fair value of plan assets at end of year | 9,990 | 11,026 |
Overfunded status | (1,981) | (2,006) |
Amounts recognized in consolidated balance sheet assets (liabilities) | 1,981 | 2,006 |
Non-qualified Supplemental Executive Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 0 | 0 |
Change in projected benefit obligation: | ||
Projected benefit obligation at beginning of year | 3,451 | 3,670 |
Service cost | 0 | 0 |
Interest cost | 102 | 116 |
Actuarial (gain) loss | (142) | 16 |
Benefits paid | (378) | (351) |
Projected benefit obligation at end of year | 3,033 | 3,451 |
Change in fair value of plan assets: | ||
Fair value of plan assets at beginning of year | 0 | 0 |
Expected return on plan assets | 0 | 0 |
Contributions by employer | 378 | 351 |
Benefits paid | (378) | (351) |
Fair value of plan assets at end of year | 0 | 0 |
Overfunded status | 3,033 | 3,451 |
Amounts recognized in consolidated balance sheet assets (liabilities) | $ (3,033) | $ (3,451) |
EMPLOYEE BENEFIT PLANS - Schedu
EMPLOYEE BENEFIT PLANS - Schedule of Net Benefit Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Total recognized in net periodic benefit cost (credit) and other comprehensive loss (income) | $ 24 | $ (26) |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 315 | 334 |
Expected return on plan assets | (706) | (706) |
Net actuarial loss (gain) | 415 | 346 |
Settlement Charge | 0 | 13 |
Settlement charge | 0 | (13) |
Net periodic pension benefit cost (credit) | (391) | (359) |
Non-qualified Supplemental Executive Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 102 | 116 |
Expected return on plan assets | 0 | 0 |
Amortization of unrecognized actuarial loss | 29 | 21 |
Net actuarial loss (gain) | (29) | (21) |
Net periodic pension benefit cost (credit) | 131 | 137 |
Total recognized in net periodic benefit cost (credit) and other comprehensive loss (income) | $ (171) | $ (5) |
EMPLOYEE BENEFIT PLANS - Sche_2
EMPLOYEE BENEFIT PLANS - Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | $ 216 | $ 328 | $ (90) |
Amortization of actuarial loss | 333 | 0 | |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement charge | 0 | (13) | |
Total accumulated other comprehensive loss (pre-tax) | 748 | 333 | |
Non-qualified Supplemental Executive Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | 414 | 585 | |
Actuarial loss (gain) | (585) | (590) | |
Amortization of actuarial loss | $ (142) | $ 16 |
EMPLOYEE BENEFIT PLANS - Sche_3
EMPLOYEE BENEFIT PLANS - Schedule of Assumptions Used (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Plans | |||
Projected benefit obligation | |||
Discount rate beginning of year | 4.23% | 3.56% | |
Net periodic pension cost | |||
Discount rate | 3.56% | 4.09% | |
Long-term rate of return on plan assets | 6.50% | 7.00% | |
Non-qualified Supplemental Executive Retirement Plan | |||
Projected benefit obligation | |||
Discount rate beginning of year | 3.83% | 3.13% | 3.31% |
EMPLOYEE BENEFIT PLANS - Sche_4
EMPLOYEE BENEFIT PLANS - Schedule of Allocation of Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 11,026 | $ 10,622 | |
Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
After tax components of accumulated other comprehensive loss, not yet recognized in net periodic pension cost | $ 573 | ||
Plan assets | 9,990 | 11,026 | |
Pension Plans | Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 9,990 | 11,025 | |
Pension Plans | Recurring | Large-cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 1,730 | 2,143 | |
Pension Plans | Recurring | Mid-cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 477 | 612 | |
Pension Plans | Recurring | Small-cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 469 | 613 | |
Pension Plans | Recurring | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 845 | 1,150 | |
Pension Plans | Recurring | Fixed-income - core plus | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 3,945 | 3,896 | |
Pension Plans | Recurring | Intermediate duration | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 1,321 | 1,316 | |
Pension Plans | Recurring | Common stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 506 | 610 | |
Pension Plans | Recurring | Common/collective trusts - large-cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 469 | 555 | |
Pension Plans | Recurring | Cash equivalents - money market | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 228 | 130 | |
Pension Plans | Level 1 | Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 9,521 | 10,470 | |
Pension Plans | Level 1 | Recurring | Large-cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 1,730 | 2,143 | |
Pension Plans | Level 1 | Recurring | Mid-cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 477 | 612 | |
Pension Plans | Level 1 | Recurring | Small-cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 469 | 613 | |
Pension Plans | Level 1 | Recurring | International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 845 | 1,150 | |
Pension Plans | Level 1 | Recurring | Fixed-income - core plus | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 3,945 | 3,896 | |
Pension Plans | Level 1 | Recurring | Intermediate duration | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 1,321 | 1,316 | |
Pension Plans | Level 1 | Recurring | Common stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 506 | 610 | |
Pension Plans | Level 1 | Recurring | Common/collective trusts - large-cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Plans | Level 1 | Recurring | Cash equivalents - money market | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 228 | 130 | |
Pension Plans | Level 2 | Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 469 | 555 | |
Pension Plans | Level 2 | Recurring | Large-cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Plans | Level 2 | Recurring | Mid-cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Plans | Level 2 | Recurring | Small-cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Plans | Level 2 | Recurring | Fixed-income - core plus | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Plans | Level 2 | Recurring | Intermediate duration | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Plans | Level 2 | Recurring | Common stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Plans | Level 2 | Recurring | Common/collective trusts - large-cap | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 469 | 555 | |
Pension Plans | Level 2 | Recurring | Cash equivalents - money market | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Non-qualified Supplemental Executive Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
After tax components of accumulated other comprehensive loss, not yet recognized in net periodic pension cost | 317 | ||
Plan assets | $ 0 | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS - Sche_5
EMPLOYEE BENEFIT PLANS - Schedule of Expected Benefit Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2019 | $ 357 |
2020 | 383 |
2021 | 382 |
2022 | 400 |
2023 | 396 |
2024-2028 | 2,239 |
Non-qualified Supplemental Executive Retirement Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2019 | 378 |
2020 | 293 |
2021 | 260 |
2022 | 260 |
2023 | 260 |
2024-2028 | $ 2,518 |
EMPLOYEE BENEFIT PLANS - Define
EMPLOYEE BENEFIT PLANS - Defined Contribution Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Total 401(k) expense | $ 1,000 | $ 970 | $ 439 |
EMPLOYEE BENEFIT PLANS Salary C
EMPLOYEE BENEFIT PLANS Salary Continuation Agreement (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Split-dollar life insurance agreement | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accrued liability | $ 671 | $ 687 |
Salary continuation agreement expense | (57) | 9 |
Certain prior executives and senior officers | Salary continuation agreement | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accrued liability | 7,300 | 8,100 |
Salary continuation agreement expense | (752) | $ (581) |
Non-qualified Supplemental Executive Retirement Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Expected amortization from accumulated other comprehensive loss into net periodic pension cost | $ 15 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets, net | $ 9,514 | $ 7,180 |
Remeasurement of net deferred tax asset resulting in additional income tax expense | $ 4,000 | |
Deferred tax liability for temporary differences recorded as provisional amount | $ 1,400 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||||||||||
Federal Tax Expense | $ 6,775 | $ 8,705 | $ 5,189 | ||||||||
State Tax Expense | 1,230 | 1,039 | 217 | ||||||||
Total Current Expense | 8,005 | 9,744 | 5,406 | ||||||||
Deferred | (443) | 2,898 | 470 | ||||||||
Impact of federal tax reform enactment | 0 | 3,988 | 0 | ||||||||
Income Tax Expense (Benefit) | $ 1,426 | $ 2,076 | $ 2,123 | $ 1,937 | $ 8,545 | $ 3,575 | $ 3,029 | $ 1,481 | $ 7,562 | $ 16,630 | $ 5,876 |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amount | |||||||||||
Statutory Tax Rate | $ 8,505 | $ 14,918 | $ 7,283 | ||||||||
Increase (Decrease) Resulting From: | |||||||||||
State taxes, net of federal benefit | 908 | 986 | 141 | ||||||||
Tax exempt interest | (1,315) | (2,074) | (1,388) | ||||||||
Federal tax credits | (125) | (130) | 0 | ||||||||
Officers' life insurance | (382) | (538) | (244) | ||||||||
Acquisition Costs | 0 | 89 | 289 | ||||||||
Stock-based compensation plans | (120) | (241) | 0 | ||||||||
Impact of federal tax reform enactment | 0 | 3,988 | 0 | ||||||||
Other | 91 | (368) | (205) | ||||||||
Income Tax Expense (Benefit) | $ 1,426 | $ 2,076 | $ 2,123 | $ 1,937 | $ 8,545 | $ 3,575 | $ 3,029 | $ 1,481 | $ 7,562 | $ 16,630 | $ 5,876 |
Rate | |||||||||||
Statutory Tax Rate | 21.00% | 35.00% | 35.00% | ||||||||
Increase (Decrease) Resulting From: | |||||||||||
State taxes, net of federal benefit | 2.24% | 2.31% | 0.68% | ||||||||
Tax exempt interest | (3.25%) | (4.87%) | (6.67%) | ||||||||
Federal tax credits | (0.31%) | (0.30%) | (0.00%) | ||||||||
Officers' life insurance | (0.94%) | (1.26%) | (1.17%) | ||||||||
Acquisition Costs | 0.00% | 0.21% | 1.39% | ||||||||
Stock-based compensation plans | (0.30%) | (0.57%) | 0.00% | ||||||||
Impact of federal tax reform enactment | 0.00% | 9.36% | 0.00% | ||||||||
Other | 0.23% | (0.86%) | (0.99%) | ||||||||
Effective Tax Rate | 18.67% | 39.02% | 28.24% |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Assets, Gross [Abstract] | ||
Allowance for loan losses | $ 3,085 | $ 2,729 |
Deferred compensation | 3,242 | 3,333 |
Unrealized gain or loss on securities available for sale | 2,641 | 649 |
Unrealized gain or loss on derivatives | 685 | 853 |
Non-accrual interest | 374 | 273 |
Core deposit intangible | 0 | |
Acquisition fair value adjustments | 3,171 | 4,000 |
Equity compensation | 335 | 297 |
Contract incentives | 1,658 | 594 |
Other | 217 | 417 |
Total | 15,408 | 13,145 |
Deferred Tax Liabilities, Gross [Abstract] | ||
Depreciation | 1,517 | 1,356 |
Deferred loan origination costs | 725 | 655 |
Branch acquisition costs and goodwill | 784 | 737 |
Core deposit intangible | 1,309 | 1,525 |
Prepaid expenses | 215 | 302 |
Interest rate cap premium amortization | 257 | 276 |
Mortgage servicing rights | 721 | 769 |
Prepaid pension | 366 | 345 |
Other | 0 | |
Total | $ 5,894 | $ 5,965 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Notional amount | $ 182,239 | ||
Interest rate caps agreements | |||
Derivative [Line Items] | |||
Premiums paid | $ 4,600 | ||
Cap interest rate | 3.00% | ||
Effective percentage interest rate, maximum | 3.00% | ||
Interest rate caps agreements | |||
Derivative [Line Items] | |||
Cash posted with counterparty | 650 | ||
Cash Flow Hedges | Designated as Hedging Instrument | |||
Derivative [Line Items] | |||
Notional amount | $ 90,000 | $ 90,000 | |
Remaining weighted average maturity | 4 years 1 month 6 days | ||
Derivative asset (liability), fair value | $ 803 | 669 | |
Cash Flow Hedges | Designated as Hedging Instrument | Interest rate caps agreements | |||
Derivative [Line Items] | |||
Notional amount | $ 90,000 | $ 90,000 | |
Remaining weighted average maturity | 4 years 1 month 6 days | 5 years 1 month 6 days | |
Derivative asset (liability), fair value | $ 803 | $ 669 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2014 | |
Interest rate swap agreements and non-hedging derivative assets and liabilities | |||
Notional Amount | $ 182,239 | ||
Interest rate caps agreements | |||
Derivative [Line Items] | |||
Premiums paid | $ 4,600 | ||
Interest rate swap agreements and non-hedging derivative assets and liabilities | |||
Cap interest rate | 3.00% | ||
Effective interest rate | 3.00% | ||
Designated as Hedging Instrument | Cash flow hedges: | |||
Interest rate swap agreements and non-hedging derivative assets and liabilities | |||
Weighted Average Maturity | 4 years 1 month 6 days | ||
Notional Amount | $ 90,000 | $ 90,000 | |
Estimated Fair Value Asset (Liability) | $ 803 | $ 669 | |
Designated as Hedging Instrument | Cash flow hedges: | Interest rate caps agreements | |||
Interest rate swap agreements and non-hedging derivative assets and liabilities | |||
Weighted Average Maturity | 4 years 1 month 6 days | 5 years 1 month 6 days | |
Notional Amount | $ 90,000 | $ 90,000 | |
Estimated Fair Value Asset (Liability) | 803 | 669 | |
Realized gain (loss) | (519) | (257) | |
Designated as Hedging Instrument | Economic hedges: | |||
Interest rate swap agreements and non-hedging derivative assets and liabilities | |||
Notional Amount | 20,352 | ||
Estimated Fair Value Asset (Liability) | $ (221) | ||
Designated as Hedging Instrument | Economic hedges: | Forward sale commitments | |||
Interest rate swap agreements and non-hedging derivative assets and liabilities | |||
Weighted Average Maturity | 2 months 12 days | ||
Notional Amount | $ 20,352 | ||
Estimated Fair Value Asset (Liability) | (221) | ||
Realized gain (loss) | 221 | (77) | |
Not Designated as Hedging Instrument | |||
Interest rate swap agreements and non-hedging derivative assets and liabilities | |||
Notional Amount | 92,239 | 130,205 | |
Estimated Fair Value Asset (Liability) | $ 8 | $ 447 | |
Not Designated as Hedging Instrument | Interest rate lock commitments | |||
Interest rate swap agreements and non-hedging derivative assets and liabilities | |||
Weighted Average Maturity | 1 month 6 days | 2 months 12 days | |
Notional Amount | $ 957 | $ 19,853 | |
Estimated Fair Value Asset (Liability) | 8 | (1) | |
Realized gain (loss) | $ 9 | (22) | |
Not Designated as Hedging Instrument | Customer loan derivative liability | |||
Interest rate swap agreements and non-hedging derivative assets and liabilities | |||
Weighted Average Maturity | 9 years 10 months 24 days | ||
Notional Amount | $ 45,641 | 19,853 | |
Estimated Fair Value Asset (Liability) | $ (1,353) | $ (1) | |
Not Designated as Hedging Instrument | Customer loan derivative asset | |||
Interest rate swap agreements and non-hedging derivative assets and liabilities | |||
Weighted Average Maturity | 9 years 10 months 24 days | ||
Notional Amount | $ 45,641 | ||
Estimated Fair Value Asset (Liability) | 1,353 | ||
Liability | Not Designated as Hedging Instrument | |||
Interest rate swap agreements and non-hedging derivative assets and liabilities | |||
Estimated Fair Value Asset (Liability) | $ 811 |
OTHER COMMITMENTS, CONTINGENC_3
OTHER COMMITMENTS, CONTINGENCIES, AND OFF-BALANCE SHEET ACTIVITIES - Schedule of Contractual Amounts (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Loss Contingencies [Line Items] | ||
Contractual amounts of commitments and contingent liabilities | $ 430,402 | $ 384,920 |
Commitments to originate new loans | ||
Loss Contingencies [Line Items] | ||
Contractual amounts of commitments and contingent liabilities | 20,431 | 52,438 |
Unused funds on commercial and other lines of credit | ||
Loss Contingencies [Line Items] | ||
Contractual amounts of commitments and contingent liabilities | 169,063 | 134,408 |
Unadvanced funds on home equity lines of credit | ||
Loss Contingencies [Line Items] | ||
Contractual amounts of commitments and contingent liabilities | 106,121 | 108,745 |
Unadvanced funds on construction and real estate loans | ||
Loss Contingencies [Line Items] | ||
Contractual amounts of commitments and contingent liabilities | 133,130 | 87,915 |
Commercial letters of credit | ||
Loss Contingencies [Line Items] | ||
Contractual amounts of commitments and contingent liabilities | 1,171 | 928 |
Standby letters of credit | ||
Loss Contingencies [Line Items] | ||
Contractual amounts of commitments and contingent liabilities | $ 486 | $ 486 |
OTHER COMMITMENTS, CONTINGENC_4
OTHER COMMITMENTS, CONTINGENCIES, AND OFF-BALANCE SHEET ACTIVITIES - Operating Lease Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2019 | $ 929 | ||
2020 | 902 | ||
2021 | 900 | ||
2022 | 916 | ||
2023 | 905 | ||
2024 and thereafter | 6,754 | ||
Total | 11,306 | ||
Rent expense | $ 1,100 | $ 872 | $ 352 |
SHAREHOLDERS_ EQUITY AND EARN_3
SHAREHOLDERS’ EQUITY AND EARNINGS PER COMMON SHARE - Actual and Required Capital Ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Tier 1 capital to risk-weighted assets | ||
Capital | $ 331,628 | $ 307,305 |
Actual | ||
Total capital to risk-weighted assets | 14.23% | 13.73% |
Common equity tier 1 capital to risk-weighted assets | 11.80% | 11.26% |
Tier 1 capital to risk-weighted assets | 12.68% | 12.19% |
Tier 1 capital to average assets | 8.53% | 8.10% |
Capital required for capital adequacy | $ 186,405 | $ 179,047 |
Common equity tier one risk based capital required for capital adequacy | 104,853 | 100,714 |
Tier one risk based capital required for capital adequacy | 139,803 | 134,286 |
Leverage capital ratio risk based capital required for capital adequacy | $ 138,482 | $ 134,758 |
Minimum Capital Requirement | ||
Total capital to risk-weighted assets | 8.00% | 8.00% |
Common equity tier 1 capital to risk-weighted assets | 4.50% | 4.50% |
Tier 1 capital to average assets | 6.00% | 6.00% |
Tier 1 capital to risk-weighted assets | 4.00% | 4.00% |
Capital Required to be Well Capitalized | $ 244,656 | $ 234,999 |
Common equity tier one risk based capital required to be well capitalized | 151,454 | 145,476 |
Tier one risk based capital required to be well capitalized | 186,404 | 179,047 |
Leverage capital ratio risk based capital required to be well capitalized | $ 173,102 | $ 168,447 |
Minimum to be Well-Capitalized Under Prompt Corrective Action Provisions | ||
Total capital to risk-weighted assets | 10.00% | 10.50% |
Common equity tier 1 capital to risk-weighted assets | 6.50% | 6.50% |
Tier 1 capital to risk-weighted assets | 8.00% | 8.00% |
Tier 1 capital to average assets | 5.00% | 5.00% |
Leverage capital ratio risk based total assets | $ 295,458 | $ 272,716 |
Tier one risk based capital | 295,458 | 272,716 |
Common equity tier one | 274,838 | 252,096 |
Bank | ||
Tier 1 capital to risk-weighted assets | ||
Capital | $ 321,390 | $ 306,495 |
Actual | ||
Total capital to risk-weighted assets | 13.82% | 13.71% |
Common equity tier 1 capital to risk-weighted assets | 12.99% | 12.92% |
Tier 1 capital to risk-weighted assets | 12.99% | 12.92% |
Tier 1 capital to average assets | 8.74% | 8.58% |
Capital required for capital adequacy | $ 186,092 | $ 178,868 |
Common equity tier one risk based capital required for capital adequacy | 104,677 | 100,613 |
Tier one risk based capital required for capital adequacy | 139,569 | 134,151 |
Leverage capital ratio risk based capital required for capital adequacy | $ 138,392 | $ 134,702 |
Minimum Capital Requirement | ||
Total capital to risk-weighted assets | 8.00% | 8.00% |
Common equity tier 1 capital to risk-weighted assets | 4.50% | 4.50% |
Tier 1 capital to average assets | 6.00% | 6.00% |
Tier 1 capital to risk-weighted assets | 4.00% | 4.00% |
Capital Required to be Well Capitalized | $ 244,246 | $ 234,764 |
Common equity tier one risk based capital required to be well capitalized | 151,200 | 145,331 |
Tier one risk based capital required to be well capitalized | 186,092 | 178,868 |
Leverage capital ratio risk based capital required to be well capitalized | $ 172,990 | $ 168,378 |
Minimum to be Well-Capitalized Under Prompt Corrective Action Provisions | ||
Total capital to risk-weighted assets | 10.00% | 10.50% |
Common equity tier 1 capital to risk-weighted assets | 6.50% | 6.50% |
Tier 1 capital to risk-weighted assets | 8.00% | 8.00% |
Tier 1 capital to average assets | 5.00% | 5.00% |
Leverage capital ratio risk based total assets | $ 302,220 | $ 288,906 |
Tier one risk based capital | 302,220 | 288,906 |
Common equity tier one | $ 302,220 | $ 288,906 |
SHAREHOLDERS_ EQUITY AND EARN_4
SHAREHOLDERS’ EQUITY AND EARNINGS PER COMMON SHARE - Components of AOCI (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss | $ (11,802) | $ (4,554) |
Net unrealized loss on AFS securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other accumulated comprehensive income (loss), before tax: | (11,304) | (2,741) |
Income taxes related to items of accumulated other comprehensive loss: | 2,641 | 1,030 |
Net unrealized loss on derivative hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other accumulated comprehensive income (loss), before tax: | (2,934) | (3,604) |
Income taxes related to items of accumulated other comprehensive loss: | 685 | 1,354 |
Net unrealized loss on post-retirement plans | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other accumulated comprehensive income (loss), before tax: | (1,162) | (950) |
Income taxes related to items of accumulated other comprehensive loss: | $ 272 | $ 357 |
SHAREHOLDERS_ EQUITY AND EARN_5
SHAREHOLDERS’ EQUITY AND EARNINGS PER COMMON SHARE - Components of OCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net unrealized gain (loss) arising during the period | |||
Net of Tax | $ (6,998) | $ (229) | $ (5,049) |
Less: reclassification adjustment for gains (losses) realized in net income | |||
Net of Tax | (730) | (1) | 2,906 |
Other comprehensive income (loss) | |||
Before Tax | (8,125) | (638) | (12,241) |
Tax Effect | 1,857 | 410 | 4,286 |
Total other comprehensive loss | (6,268) | (228) | (7,955) |
Net unrealized loss on AFS securities | |||
Net unrealized gain (loss) arising during the period | |||
Before Tax | (9,487) | 545 | (7,561) |
Tax Effect | 2,194 | (121) | 2,647 |
Net of Tax | (7,293) | 424 | (4,914) |
Less: reclassification adjustment for gains (losses) realized in net income | |||
Before Tax | (924) | 19 | 4,498 |
Tax Effect | 216 | (7) | (1,574) |
Net of Tax | (708) | 12 | 2,924 |
Other comprehensive income (loss) | |||
Before Tax | (8,563) | 526 | (12,059) |
Tax Effect | 1,978 | (114) | 4,221 |
Total other comprehensive loss | (6,585) | 412 | (7,838) |
Net unrealized loss on derivative hedges | |||
Net unrealized gain (loss) arising during the period | |||
Before Tax | 654 | (838) | (272) |
Tax Effect | (168) | 386 | 95 |
Net of Tax | 486 | (452) | (177) |
Less: reclassification adjustment for gains (losses) realized in net income | |||
Before Tax | 0 | 0 | 0 |
Tax Effect | 0 | 0 | 0 |
Net of Tax | 0 | 0 | 0 |
Other comprehensive income (loss) | |||
Before Tax | 654 | (838) | (272) |
Tax Effect | (168) | 386 | 95 |
Total other comprehensive loss | 486 | (452) | (177) |
Net unrealized loss on post-retirement plans | |||
Net unrealized gain (loss) arising during the period | |||
Before Tax | (245) | (347) | 62 |
Tax Effect | 54 | 146 | (20) |
Net of Tax | (191) | (201) | 42 |
Less: reclassification adjustment for gains (losses) realized in net income | |||
Before Tax | (29) | (21) | (28) |
Tax Effect | 7 | 8 | 10 |
Net of Tax | (22) | (13) | (18) |
Other comprehensive income (loss) | |||
Before Tax | (216) | (326) | 90 |
Tax Effect | 47 | 138 | (30) |
Total other comprehensive loss | $ (169) | $ (188) | $ 60 |
SHAREHOLDERS_ EQUITY AND EARN_6
SHAREHOLDERS’ EQUITY AND EARNINGS PER COMMON SHARE - Changes in AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | $ 354,641 | $ 156,740 | $ 154,152 |
Other comprehensive gain (loss) before reclassifications | (6,998) | (229) | (5,049) |
Less: amounts reclassified from accumulated other comprehensive income | (730) | (1) | 2,906 |
Total other comprehensive loss | (6,268) | (228) | (7,955) |
Balance at end of period | 370,579 | 354,641 | 156,740 |
Net unrealized loss on AFS securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | (1,713) | (2,125) | 5,713 |
Other comprehensive gain (loss) before reclassifications | (7,293) | 424 | (4,914) |
Less: amounts reclassified from accumulated other comprehensive income | (708) | 12 | 2,924 |
Total other comprehensive loss | (6,585) | 412 | (7,838) |
Balance at end of period | (8,665) | (1,713) | (2,125) |
Net unrealized loss on derivative hedges | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | (2,250) | (1,798) | (1,621) |
Other comprehensive gain (loss) before reclassifications | 486 | (452) | (177) |
Less: amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 |
Total other comprehensive loss | 486 | (452) | (177) |
Balance at end of period | (2,249) | (2,250) | (1,798) |
Net unrealized loss on post-retirement plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | (591) | (403) | (463) |
Other comprehensive gain (loss) before reclassifications | (191) | (201) | 42 |
Less: amounts reclassified from accumulated other comprehensive income | (22) | (13) | (18) |
Total other comprehensive loss | (169) | (188) | 60 |
Balance at end of period | (888) | (591) | (403) |
Accumulated other comprehensive (loss) income | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance at beginning of period | (4,554) | (4,326) | 3,629 |
Total other comprehensive loss | (6,268) | (228) | (7,955) |
Balance at end of period | (11,802) | $ (4,554) | $ (4,326) |
Accounting Standards Update 2018-02 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Less: amounts reclassified from accumulated other comprehensive income | (980) | ||
Accounting Standards Update 2018-02 | Net unrealized loss on AFS securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Less: amounts reclassified from accumulated other comprehensive income | (367) | ||
Accounting Standards Update 2018-02 | Net unrealized loss on derivative hedges | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Less: amounts reclassified from accumulated other comprehensive income | (485) | ||
Accounting Standards Update 2018-02 | Net unrealized loss on post-retirement plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Less: amounts reclassified from accumulated other comprehensive income | $ (128) |
SHAREHOLDERS_ EQUITY AND EARN_7
SHAREHOLDERS’ EQUITY AND EARNINGS PER COMMON SHARE - Amounts Reclassified Out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amounts reclassified out of each component of accumulated other comprehensive income | |||||||||||
Non-interest income | $ 7,450 | $ 7,126 | $ 7,121 | $ 6,238 | $ 6,518 | $ 6,960 | $ 6,558 | $ 5,946 | $ 27,935 | $ 25,982 | $ 12,349 |
Tax expense | $ (1,426) | $ (2,076) | $ (2,123) | $ (1,937) | $ (8,545) | $ (3,575) | $ (3,029) | $ (1,481) | (7,562) | (16,630) | (5,876) |
Net unrealized loss on AFS securities | |||||||||||
Amounts reclassified out of each component of accumulated other comprehensive income | |||||||||||
Tax effect | 216 | (7) | (1,574) | ||||||||
Net unrealized loss on AFS securities | Amount Reclassified from Accumulated Other Comprehensive Income (loss) | |||||||||||
Amounts reclassified out of each component of accumulated other comprehensive income | |||||||||||
Non-interest income | (924) | 19 | 4,498 | ||||||||
Tax expense | 216 | (7) | (1,574) | ||||||||
Net of tax | (708) | 12 | 2,924 | ||||||||
Net unrealized loss on post-retirement plans | |||||||||||
Amounts reclassified out of each component of accumulated other comprehensive income | |||||||||||
Before tax | (29) | (21) | (28) | ||||||||
Tax effect | 7 | 8 | 10 | ||||||||
Total reclassifications for the period | $ (22) | $ (13) | $ (18) |
SHAREHOLDERS_ EQUITY AND EARN_8
SHAREHOLDERS’ EQUITY AND EARNINGS PER COMMON SHARE - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | |||||||||||
Net income | $ 7,620 | $ 8,970 | $ 8,535 | $ 7,812 | $ 6,609 | $ 8,617 | $ 6,556 | $ 4,211 | $ 32,937 | $ 25,993 | $ 14,933 |
Average number of basic common shares outstanding | 15,516,000 | 15,503,000 | 15,482,000 | 15,448,000 | 15,437,000 | 15,420,000 | 15,393,000 | 14,471,000 | 15,487,686 | 15,183,615 | 9,068,624 |
Plus: dilutive effect of stock options and awards outstanding | 76,778 | 106,795 | 74,029 | ||||||||
Average number of diluted common shares outstanding | 15,574,000 | 15,580,000 | 15,571,000 | 15,553,000 | 15,537,000 | 15,511,000 | 15,506,000 | 14,591,000 | 15,564,464 | 15,290,410 | 9,142,653 |
Anti-dilutive options excluded from earnings calculation | 7,991 | 8,659 | 90,249 | ||||||||
Earnings Per Share, Basic and Diluted [Abstract] | |||||||||||
Basic (in dollars per share) | $ 0.49 | $ 0.58 | $ 0.55 | $ 0.51 | $ 0.43 | $ 0.56 | $ 0.43 | $ 0.29 | $ 2.13 | $ 1.71 | $ 1.65 |
Diluted (in dollars per share) | $ 0.49 | $ 0.58 | $ 0.55 | $ 0.50 | $ 0.43 | $ 0.56 | $ 0.42 | $ 0.29 | $ 2.12 | $ 1.70 | $ 1.63 |
STOCK-BASED COMPENSATION PLAN_2
STOCK-BASED COMPENSATION PLANS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of options exercised | $ 913 | $ 760 | $ 708 |
Unrecognized compensation cost | $ 1,800 | ||
Unrecognized compensation cost, expense recognition period | 2 years | ||
ISOP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for issuance | 1,012,500 | ||
Term of plan | 10 years | ||
ISOP | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
ISOP | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 7 years | ||
2009 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for issuance | 393,750 | ||
Term of plan | 10 years | ||
Number of common stock shares awarded as RSA's, maximum | 168,750 | ||
Stock award granted to one individual, maximum | 45,000 | ||
2015 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for issuance | 420,000 | ||
Term of plan | 10 years | ||
Stock award granted to one individual, maximum | 30,000 | ||
Shares available for grant under this plan | 117,134 | ||
Long Term Incentive Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term of plan | 3 years | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 8 | ||
Unrecognized compensation cost, expense recognition period | 1 year 4 months 10 days | ||
Stock options | Weighted Average | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost, expense recognition period | 6 years | ||
Stock options and restricted stock awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefit recognized from compensation expense | $ 81 | 308 | 274 |
Restricted stock units and performance stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefit recognized from compensation expense | 221 | 423 | 320 |
Performance stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of stock units vested and exercised | $ 337 | $ 285 | 336 |
Fair market value on granted shares (usd per share) | $ 26.30 | $ 26.74 | |
Performance period required | 3 years | 3 years | |
Performance stock units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for issuance | 0 | 0 | |
Performance stock units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for issuance | 28,082 | 19,973 | |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of stock units vested and exercised | $ 594 | $ 272 | $ 235 |
Vesting period | 3 years | ||
Fair market value on granted shares (usd per share) | $ 28.66 | $ 28.48 | |
Restricted stock units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair market value on granted shares (usd per share) | 24.85 | 26.86 | |
Restricted stock units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair market value on granted shares (usd per share) | $ 30.19 | $ 30.93 |
STOCK-BASED COMPENSATION PLAN_3
STOCK-BASED COMPENSATION PLANS - Allocation of Recognized Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense | $ 1,298 | $ 1,274 | $ 1,278 |
Stock options and restricted stock awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense | 350 | 399 | 543 |
Performance stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense | 237 | 290 | 304 |
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total compensation expense | $ 711 | $ 585 | $ 431 |
STOCK-BASED COMPENSATION PLAN_4
STOCK-BASED COMPENSATION PLANS - Summary of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Stock Options Outstanding | ||
Beginning balance (in shares) | 169,921 | 236,763 |
Granted (in shares) | 0 | 0 |
Exercised (in shares) | (47,534) | (55,725) |
Forfeited (in shares) | (750) | (11,117) |
Ending balance (in shares) | 121,637 | 169,921 |
Ending vested and expected to vest (in shares) | 121,637 | 169,921 |
Exercisable, outstanding (in shares) | 101,554 | 100,317 |
Weighted Average Exercise Price | ||
Beginning balance (usd per share) | $ 18.95 | $ 17.99 |
Granted (usd per share) | 0 | 0 |
Exercised (usd per share) | 16.32 | 15.19 |
Forfeited (usd per share) | 22.16 | 17.38 |
Ending balance (usd per share) | 19.96 | 18.95 |
Ending vested and expected to vest (usd per share) | 19.96 | 18.95 |
Exercisable (usd per share) | $ 20.66 | $ 18.66 |
Aggregate Intrinsic Value | ||
Value of ending outstanding balance | $ 313 | $ 1,370 |
Ending vested and expected to vest | 313 | 1,370 |
Exercisable, aggregate intrinsic value | $ 192 | $ 838 |
STOCK-BASED COMPENSATION PLAN_5
STOCK-BASED COMPENSATION PLANS - Summary of Restricted Stock Award Activity (Details) - Restricted Stock Awards - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Awards Outstanding | ||
Beginning balance (in shares) | 0 | 0 |
Awarded (in shares) | 12,420 | 8,004 |
Vested (in shares) | (12,420) | (8,004) |
Forfeited (in shares) | 0 | 0 |
Ending balance (in shares) | 0 | 0 |
Weighted Average Grant Date Fair Value | ||
Beginning balance (usd per share) | $ 0 | $ 0 |
Granted (usd per share) | 24.14 | 29.96 |
Vested (usd per share) | 24.14 | 29.96 |
Forfeited (usd per share) | 0 | 0 |
Ending balance (usd per share) | $ 0 | $ 0 |
STOCK-BASED COMPENSATION PLAN_6
STOCK-BASED COMPENSATION PLANS - Summary of Stock Units Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Performance stock units | ||
Number of Units Outstanding | ||
Beginning balance (in shares) | 33,627 | 34,246 |
Awarded (in shares) | 23,011 | 17,711 |
Forfeited (in shares) | (3,756) | (3,209) |
Vested (in shares) | (15,017) | (15,121) |
Ending balance (in shares) | 37,865 | 33,627 |
Weighted Average Grant Date Fair Value | ||
Beginning balance (usd per share) | $ 25.21 | $ 21.25 |
Granted (usd per share) | 26.30 | 26.74 |
Vested (usd per share) | 22.25 | 18.84 |
Forfeited (usd per share) | 27.94 | 21.51 |
Ending balance (usd per share) | $ 26.77 | $ 25.21 |
Restricted Stock Units | ||
Number of Units Outstanding | ||
Beginning balance (in shares) | 74,168 | 40,681 |
Awarded (in shares) | 46,743 | 57,561 |
Forfeited (in shares) | (13,682) | (11,407) |
Vested (in shares) | (26,489) | (12,667) |
Ending balance (in shares) | 80,740 | 74,168 |
Weighted Average Grant Date Fair Value | ||
Beginning balance (usd per share) | $ 26.60 | $ 22.03 |
Granted (usd per share) | 28.66 | 28.48 |
Vested (usd per share) | 24.36 | 21.49 |
Forfeited (usd per share) | 28.28 | 25.43 |
Ending balance (usd per share) | $ 28.24 | $ 26.60 |
FAIR VALUE MEASUREMENTS - Measu
FAIR VALUE MEASUREMENTS - Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | $ 725,837 | $ 717,242 |
Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 725,837 | 717,242 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 725,837 | 717,242 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 2,164 | 669 |
Derivative liabilities | (1,353) | (222) |
Recurring | Total Fair Value | Obligations of US Government sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 6,972 | |
Recurring | Total Fair Value | US Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 404,952 | 443,003 |
Recurring | Total Fair Value | US Government agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 110,512 | 95,596 |
Recurring | Total Fair Value | Private label | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 20,382 | 674 |
Recurring | Total Fair Value | Obligations of states and political subdivisions thereof | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 132,265 | 140,200 |
Recurring | Total Fair Value | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 57,726 | 30,797 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring | Level 1 | Obligations of US Government sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | |
Recurring | Level 1 | US Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 1 | US Government agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 1 | Private label | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 1 | Obligations of states and political subdivisions thereof | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 2,156 | 669 |
Derivative liabilities | (1,353) | |
Recurring | Level 2 | Obligations of US Government sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 6,972 | |
Recurring | Level 2 | US Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 404,952 | 443,003 |
Recurring | Level 2 | US Government agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 110,512 | 95,596 |
Recurring | Level 2 | Private label | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 20,382 | 674 |
Recurring | Level 2 | Obligations of states and political subdivisions thereof | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 132,265 | 140,200 |
Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 57,726 | 30,797 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 8 | 0 |
Derivative liabilities | 0 | (222) |
Recurring | Level 3 | Obligations of US Government sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | |
Recurring | Level 3 | US Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 3 | US Government agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 3 | Private label | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 3 | Obligations of states and political subdivisions thereof | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | 0 | 0 |
Recurring | Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale, at fair value | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Chang
FAIR VALUE MEASUREMENTS - Changes in Level 3 (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Interest Rate Lock Commitment | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | $ (1) | $ 0 |
Acquisition of Lake Sunapee Bank, January 13, 2017 | 96 | |
Goodwill adjustment Lake Sunapee Bank Merger | (75) | |
Realized gain recognized in non-interest income | 9 | (22) |
Ending balance | 8 | (1) |
Forward Commitments | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | (221) | 0 |
Acquisition of Lake Sunapee Bank, January 13, 2017 | 23 | |
Goodwill adjustment Lake Sunapee Bank Merger | (167) | |
Realized gain recognized in non-interest income | 221 | (77) |
Ending balance | $ 0 | $ (221) |
FAIR VALUE MEASUREMENTS - Unobs
FAIR VALUE MEASUREMENTS - Unobservable Inputs Recurring (Details) - Level 3 - Recurring | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Quantitative information about the significant unobservable inputs within Level 3 | |
Total | $ 8,000 |
Interest Rate Lock Commitment | |
Quantitative information about the significant unobservable inputs within Level 3 | |
Derivative asset (liability), fair value | $ 8,000 |
Interest Rate Lock Commitment | Pricing Model | |
Quantitative information about the significant unobservable inputs within Level 3 | |
Closing Ratio | 90.00% |
Origination Costs, per loan | $ 1,700 |
Forward Commitments | |
Quantitative information about the significant unobservable inputs within Level 3 | |
Derivative asset (liability), fair value | $ 0 |
FAIR VALUE MEASUREMENTS - Mea_2
FAIR VALUE MEASUREMENTS - Measured on Non-recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Assets | ||
Other real estate owned | $ 2,351 | $ 122 |
Non-recurring | Level 3 | ||
Assets | ||
Total | 22,446 | 15,073 |
Total Gains (Losses) | (4,440) | |
Non-recurring | Level 3 | Impaired loans | ||
Assets | ||
Impaired loans | 15,213 | 10,793 |
Total Gains (Losses) | (4,420) | |
Non-recurring | Level 3 | Capitalized servicing rights | ||
Assets | ||
Capitalized servicing rights | 4,882 | 4,158 |
Total Gains (Losses) | 0 | |
Non-recurring | Level 3 | Other real estate owned | ||
Assets | ||
Other real estate owned | 2,351 | $ 122 |
Total Gains (Losses) | $ (20) |
FAIR VALUE MEASUREMENTS - Uno_2
FAIR VALUE MEASUREMENTS - Unobservable Inputs Non-recurring (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Quantitative information about the significant unobservable inputs within Level 3 | ||
Other real estate owned | $ 2,351,000 | $ 122,000 |
Non-recurring | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Total | 22,446,000 | 15,073,000 |
Non-recurring | Fair value of collateral - appraised value | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired loans | 11,676,000 | 8,586,000 |
Other real estate owned | 2,351,000 | 122,000 |
Non-recurring | Discounted cash flow | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired loans | 3,537,000 | 2,207,000 |
Capitalized servicing rights | 4,882,000 | 4,158,000 |
Non-recurring | Impaired loans | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Impaired loans | 15,213,000 | 10,793,000 |
Non-recurring | Impaired loans | Minimum | Fair value of collateral - appraised value | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Appraised value | $ 0 | $ 100,000 |
Non-recurring | Impaired loans | Minimum | Discounted cash flow | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Discount rate | 2.88% | 2.63% |
Cash flows | $ 22,000 | $ 6,000 |
Non-recurring | Impaired loans | Maximum | Fair value of collateral - appraised value | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Appraised value | $ 6,915,000 | $ 7,545,000 |
Non-recurring | Impaired loans | Maximum | Discounted cash flow | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Discount rate | 9.50% | 9.50% |
Cash flows | $ 1,072,000 | $ 320,000 |
Non-recurring | Capitalized servicing rights | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Capitalized servicing rights | 4,882,000 | 4,158,000 |
Non-recurring | Other real estate owned | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Other real estate owned | 2,351,000 | 122,000 |
Non-recurring | Other real estate owned | Fair value of collateral - appraised value | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Appraised value | $ 2,700,000 | $ 136,000 |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Selling Costs | 12.93% | |
Measurement Input, Constant Prepayment Rate | Non-recurring | Capitalized servicing rights | Discounted cash flow | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Constant prepayment rate (CPR) | 10.97% | |
Measurement Input, Discount Rate | Non-recurring | Capitalized servicing rights | Discounted cash flow | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Discount rate | 10.08% | 10.10% |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Selling Costs | 10.00% | |
Measurement Input, Prepayment Rate | Non-recurring | Capitalized servicing rights | Discounted cash flow | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Constant prepayment rate (CPR) | 8.19% | |
Measurement Input, Loss Severity | Non-recurring | Impaired loans | Minimum | Fair value of collateral - appraised value | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Loss severity | 0.00% | 15.70% |
Measurement Input, Loss Severity | Non-recurring | Impaired loans | Maximum | Fair value of collateral - appraised value | Level 3 | ||
Quantitative information about the significant unobservable inputs within Level 3 | ||
Loss severity | 55.00% | 45.28% |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Values and Carrying Amounts (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financial Assets | ||
Securities available for sale | $ 725,837 | $ 717,242 |
Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 98,754 | 90,685 |
Securities available for sale | 0 | 0 |
FHLB bank stock | 0 | 0 |
Net loans | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Cash surrender value of bank-owned life insurance policies | 0 | 0 |
Derivative assets | 0 | 0 |
Financial Liabilities | ||
Total deposits | 0 | 0 |
Other short-term borrowings | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 1 | Senior subordinated | ||
Financial Liabilities | ||
Subordinated borrowings | 0 | 0 |
Level 1 | Junior subordinated | ||
Financial Liabilities | ||
Subordinated borrowings | 0 | 0 |
Level 2 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 725,837 | 717,242 |
FHLB bank stock | 35,659 | 38,105 |
Net loans | 0 | 0 |
Accrued interest receivable | 3,533 | 3,347 |
Cash surrender value of bank-owned life insurance policies | 73,810 | 57,997 |
Derivative assets | 2,156 | 669 |
Financial Liabilities | ||
Total deposits | 2,404,250 | 2,348,574 |
Other short-term borrowings | 36,171 | 40,680 |
Federal Home Loan Bank advances | 643,065 | 744,006 |
Derivative liabilities | 0 | 0 |
Level 2 | Senior subordinated | ||
Financial Liabilities | ||
Subordinated borrowings | 37,973 | 38,033 |
Level 2 | Junior subordinated | ||
Financial Liabilities | ||
Subordinated borrowings | 3,923 | 3,782 |
Level 3 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 0 | 0 |
FHLB bank stock | 0 | 0 |
Net loans | 2,415,863 | 2,433,557 |
Accrued interest receivable | 0 | 0 |
Cash surrender value of bank-owned life insurance policies | 0 | 0 |
Derivative assets | 8 | 0 |
Financial Liabilities | ||
Total deposits | 0 | 0 |
Other short-term borrowings | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Derivative liabilities | (1,353) | (222) |
Level 3 | Senior subordinated | ||
Financial Liabilities | ||
Subordinated borrowings | 0 | 0 |
Level 3 | Junior subordinated | ||
Financial Liabilities | ||
Subordinated borrowings | 0 | 0 |
Carrying Value | ||
Financial Assets | ||
Cash and cash equivalents | 98,754 | 90,685 |
Securities available for sale | 725,837 | 717,242 |
FHLB bank stock | 35,659 | 38,105 |
Net loans | 2,476,361 | 2,473,288 |
Accrued interest receivable | 3,533 | 3,347 |
Cash surrender value of bank-owned life insurance policies | 73,810 | 57,997 |
Derivative assets | 2,164 | 669 |
Financial Liabilities | ||
Total deposits | 2,483,238 | 2,352,085 |
Other short-term borrowings | 36,211 | 40,706 |
Federal Home Loan Bank advances | 644,611 | 745,982 |
Derivative liabilities | (1,353) | (222) |
Carrying Value | Senior subordinated | ||
Financial Liabilities | ||
Subordinated borrowings | 37,973 | 38,033 |
Carrying Value | Junior subordinated | ||
Financial Liabilities | ||
Subordinated borrowings | 5,000 | 5,000 |
Total Fair Value | ||
Financial Assets | ||
Cash and cash equivalents | 98,754 | 90,685 |
Securities available for sale | 725,837 | 717,242 |
FHLB bank stock | 35,659 | 38,105 |
Net loans | 2,415,863 | 2,433,557 |
Accrued interest receivable | 3,533 | 3,347 |
Cash surrender value of bank-owned life insurance policies | 73,810 | 57,997 |
Derivative assets | 2,164 | 669 |
Financial Liabilities | ||
Total deposits | 2,404,250 | 2,348,574 |
Other short-term borrowings | 36,171 | 40,680 |
Federal Home Loan Bank advances | 643,065 | 744,006 |
Derivative liabilities | (1,353) | (222) |
Total Fair Value | Senior subordinated | ||
Financial Liabilities | ||
Subordinated borrowings | 37,973 | 38,033 |
Total Fair Value | Junior subordinated | ||
Financial Liabilities | ||
Subordinated borrowings | $ 3,923 | $ 3,782 |
NON-INTEREST INCOME - Narrative
NON-INTEREST INCOME - Narrative (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reduction in retained earnings | $ (144,793) | $ (166,526) | $ (144,977) |
Accounting Standards Update 2014-09 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Increase in deferred tax assets | 57 | ||
Reduction in retained earnings | $ 184 |
NON-INTEREST INCOME - Financial
NON-INTEREST INCOME - Financial Statement Impact (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other assets | $ 29,853 | $ 24,446 | $ 24,389 |
Other liabilities | 30,874 | 28,978 | 28,737 |
Retained earnings | $ 166,526 | 144,793 | 144,977 |
Adjustments due to Topic 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | (184) | ||
Difference between Revenue Guidance in Effect before and after Topic 606 | Adjustments due to Topic 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other assets | 57 | ||
Other liabilities | 241 | ||
Retained earnings | $ (184) | ||
Calculated under Revenue Guidance in Effect before Topic 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other assets | 24,389 | ||
Other liabilities | 28,737 | ||
Retained earnings | $ 144,977 |
NON-INTEREST INCOME - Disaggreg
NON-INTEREST INCOME - Disaggregation of Revenue (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |
Revenues | $ 21,523 |
Products and services transferred at a point in time | |
Disaggregation of Revenue [Line Items] | |
Revenues | 9,766 |
Products and services transferred over time | |
Disaggregation of Revenue [Line Items] | |
Revenues | 11,757 |
Trust management fees | |
Disaggregation of Revenue [Line Items] | |
Revenues | 11,017 |
Financial services fees | |
Disaggregation of Revenue [Line Items] | |
Revenues | 968 |
Interchange fees | |
Disaggregation of Revenue [Line Items] | |
Revenues | 4,434 |
Customer deposit fees | |
Disaggregation of Revenue [Line Items] | |
Revenues | 3,800 |
Other customer service fees | |
Disaggregation of Revenue [Line Items] | |
Revenues | $ 1,304 |
NON-INTEREST INCOME - Contract
NON-INTEREST INCOME - Contract with customers (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Revenue from Contract with Customer [Abstract] | ||
Other Assets | $ 2,866 | $ 972 |
Other Liabilities | $ 4,923 | $ 342 |
CONDENSED FINANCIAL STATEMENT_3
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | |||||
Cash due from Bar Harbor Bank and Trust | $ 35,208 | $ 34,262 | |||
Premises and equipment | 48,804 | 47,708 | |||
Other assets | 29,853 | $ 24,446 | 24,389 | ||
Total assets | 3,608,487 | 3,565,184 | |||
Liabilities and Shareholders Equity | |||||
Subordinated notes | 42,973 | 43,033 | |||
Shareholders equity | 370,579 | 354,641 | $ 156,740 | $ 154,152 | |
Total liabilities and shareholders’ equity | 3,608,487 | 3,565,184 | |||
Parent Company | |||||
Assets | |||||
Cash due from Bar Harbor Bank and Trust | 9,993 | 2,400 | |||
Investment in subsidiaries | 398,821 | 392,073 | |||
Premises and equipment | 687 | 687 | |||
Other assets | 3,416 | 939 | |||
Total assets | 412,917 | 396,099 | |||
Liabilities and Shareholders Equity | |||||
Subordinated notes | 37,973 | 38,033 | |||
Accrued expenses | 4,365 | 3,425 | |||
Shareholders equity | 370,579 | 354,641 | |||
Total liabilities and shareholders’ equity | $ 412,917 | $ 396,099 |
CONDENSED FINANCIAL STATEMENT_4
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Interest expense | $ 10,508 | $ 9,715 | $ 8,726 | $ 7,619 | $ 6,660 | $ 6,585 | $ 5,856 | $ 4,813 | $ 36,568 | $ 23,914 | $ 12,113 |
Non-interest expense | 20,096 | 17,906 | 18,685 | 18,852 | 14,263 | 17,586 | 20,046 | 20,831 | 75,539 | 72,726 | 35,935 |
Income before income taxes | 9,046 | 11,046 | 10,658 | 9,749 | 15,154 | 12,192 | 9,585 | 5,692 | 40,499 | 42,623 | 20,809 |
Income tax benefit | 1,426 | 2,076 | 2,123 | 1,937 | 8,545 | 3,575 | 3,029 | 1,481 | 7,562 | 16,630 | 5,876 |
Net income | $ 7,620 | $ 8,970 | $ 8,535 | $ 7,812 | $ 6,609 | $ 8,617 | $ 6,556 | $ 4,211 | 32,937 | 25,993 | 14,933 |
Parent Company | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Dividends from subsidiaries | 23,705 | 13,907 | 6,473 | ||||||||
Other | 31 | 25 | 0 | ||||||||
Total revenue | 23,736 | 13,932 | 6,473 | ||||||||
Interest expense | 2,121 | 1,857 | 0 | ||||||||
Non-interest expense | 3,147 | 2,979 | 2,949 | ||||||||
Total expense | 5,268 | 4,836 | 2,949 | ||||||||
Income before income taxes | 18,468 | 9,096 | 3,524 | ||||||||
Income tax benefit | (1,136) | (1,210) | (1,029) | ||||||||
Income before equity in undistributed income of subsidiaries | 19,604 | 10,306 | 4,553 | ||||||||
Equity in undistributed income of subsidiaries | 13,333 | 15,687 | 10,380 | ||||||||
Net income | $ 32,937 | $ 25,993 | $ 14,933 |
CONDENSED FINANCIAL STATEMENT_5
CONDENSED FINANCIAL STATEMENTS OF PARENT COMPANY - Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 7,620 | $ 8,970 | $ 8,535 | $ 7,812 | $ 6,609 | $ 8,617 | $ 6,556 | $ 4,211 | $ 32,937 | $ 25,993 | $ 14,933 |
Adjustments to reconcile net income to net cash (used) provided by operating activities: | |||||||||||
Net cash provided by operating activities | 37,722 | 40,132 | 16,791 | ||||||||
Cash flows from investing activities: | |||||||||||
Acquisitions, net of cash paid | 0 | 39,537 | 0 | ||||||||
Net cash used in investing activities | (43,964) | (159,006) | (181,886) | ||||||||
Cash flows from financing activities: | |||||||||||
Net cash provided by financing activities | 14,311 | 201,120 | 163,814 | ||||||||
Net change in cash and cash equivalents | 8,069 | 82,246 | (1,281) | ||||||||
Cash and cash equivalents at beginning of year | 90,685 | 8,439 | 90,685 | 8,439 | 9,720 | ||||||
Cash and cash equivalents at end of year | 98,754 | 90,685 | 98,754 | 90,685 | 8,439 | ||||||
Parent Company | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 32,937 | 25,993 | 14,933 | ||||||||
Adjustments to reconcile net income to net cash (used) provided by operating activities: | |||||||||||
Equity in undistributed income of subsidiaries | (13,333) | (15,687) | (10,380) | ||||||||
Other, net | (1,457) | (1,364) | 1,336 | ||||||||
Net cash provided by operating activities | 18,147 | 8,942 | 5,889 | ||||||||
Cash flows from investing activities: | |||||||||||
Acquisitions, net of cash paid | 0 | 1,939 | 0 | ||||||||
Purchase of securities | (7) | 0 | 0 | ||||||||
Other, net | 0 | 0 | (1) | ||||||||
Net cash used in investing activities | (7) | 1,939 | (1) | ||||||||
Cash flows from financing activities: | |||||||||||
Net proceeds from common stock | 951 | 1,052 | 1,570 | ||||||||
Net proceeds from reissuance of treasury stock | 686 | 686 | (497) | ||||||||
Common stock cash dividends paid | (12,184) | (11,505) | (6,577) | ||||||||
Other, net | 0 | (16) | 0 | ||||||||
Net cash provided by financing activities | (10,547) | (9,783) | (5,504) | ||||||||
Net change in cash and cash equivalents | 7,593 | 1,098 | 384 | ||||||||
Cash and cash equivalents at beginning of year | $ 2,400 | $ 1,302 | 2,400 | 1,302 | 918 | ||||||
Cash and cash equivalents at end of year | $ 9,993 | $ 2,400 | $ 9,993 | $ 2,400 | $ 1,302 |
QUARTERLY DATA (UNAUDITED) (Det
QUARTERLY DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest and dividend income | $ 32,772 | $ 32,184 | $ 31,718 | $ 30,777 | $ 30,156 | $ 30,063 | $ 29,665 | $ 26,185 | $ 127,451 | $ 116,069 | $ 57,487 |
Interest expense | 10,508 | 9,715 | 8,726 | 7,619 | 6,660 | 6,585 | 5,856 | 4,813 | 36,568 | 23,914 | 12,113 |
Net interest income | 22,264 | 22,469 | 22,992 | 23,158 | 23,496 | 23,478 | 23,809 | 21,372 | 90,883 | 92,155 | 45,374 |
Non-interest income | 7,450 | 7,126 | 7,121 | 6,238 | 6,518 | 6,960 | 6,558 | 5,946 | 27,935 | 25,982 | 12,349 |
Provision for loan losses | 572 | 643 | 770 | 795 | 597 | 660 | 736 | 795 | 2,780 | 2,788 | 979 |
Non-interest expense | 20,096 | 17,906 | 18,685 | 18,852 | 14,263 | 17,586 | 20,046 | 20,831 | 75,539 | 72,726 | 35,935 |
Income before income taxes | 9,046 | 11,046 | 10,658 | 9,749 | 15,154 | 12,192 | 9,585 | 5,692 | 40,499 | 42,623 | 20,809 |
Income tax expense | 1,426 | 2,076 | 2,123 | 1,937 | 8,545 | 3,575 | 3,029 | 1,481 | 7,562 | 16,630 | 5,876 |
Net income | $ 7,620 | $ 8,970 | $ 8,535 | $ 7,812 | $ 6,609 | $ 8,617 | $ 6,556 | $ 4,211 | $ 32,937 | $ 25,993 | $ 14,933 |
Basic earnings per share (in usd per share) | $ 0.49 | $ 0.58 | $ 0.55 | $ 0.51 | $ 0.43 | $ 0.56 | $ 0.43 | $ 0.29 | $ 2.13 | $ 1.71 | $ 1.65 |
Diluted earnings per share (in usd per share) | $ 0.49 | $ 0.58 | $ 0.55 | $ 0.50 | $ 0.43 | $ 0.56 | $ 0.42 | $ 0.29 | $ 2.12 | $ 1.70 | $ 1.63 |
Weighted average shares outstanding: | |||||||||||
Basic (in shares) | 15,516,000 | 15,503,000 | 15,482,000 | 15,448,000 | 15,437,000 | 15,420,000 | 15,393,000 | 14,471,000 | 15,487,686 | 15,183,615 | 9,068,624 |
Diluted (in shares) | 15,574,000 | 15,580,000 | 15,571,000 | 15,553,000 | 15,537,000 | 15,511,000 | 15,506,000 | 14,591,000 | 15,564,464 | 15,290,410 | 9,142,653 |
Uncategorized Items - bhb-20181
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleEffectOfChangeOnNetIncome | $ (184,000) |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleEffectOfChangeOnNetIncome | $ (184,000) |