Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 03, 2015 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CAC | |
Entity Registrant Name | CAMDEN NATIONAL CORP | |
Entity Central Index Key | 750,686 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 10,204,101 |
CONSOLIDATED STATEMENTS OF COND
CONSOLIDATED STATEMENTS OF CONDITION (CURRENT PERIOD UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 66,644 | $ 60,813 |
Securities: | ||
Available-for-sale securities, at fair value | 724,237 | 763,063 |
Held-to-maturity securities, at amortized cost | 75,368 | 20,179 |
Federal Home Loan Bank and Federal Reserve Bank stock, at cost | 20,447 | 20,391 |
Total securities | 820,052 | 803,633 |
Loans held for sale | 890 | 0 |
Loans | 1,830,143 | 1,772,610 |
Less: allowance for loan losses | (21,132) | (21,116) |
Net loans | 1,809,011 | 1,751,494 |
Bank-owned life insurance | 59,090 | 57,800 |
Goodwill and other intangible assets | 47,309 | 48,171 |
Premises and equipment, net | 23,567 | 23,886 |
Deferred tax assets | 12,875 | 14,434 |
Interest receivable | 6,577 | 6,017 |
Other real estate owned | 204 | 1,587 |
Other assets | 25,579 | 22,018 |
Total assets | 2,871,798 | 2,789,853 |
Deposits: | ||
Demand | 308,576 | 263,013 |
Interest checking | 480,065 | 480,521 |
Savings and money market | 650,701 | 653,708 |
Certificates of deposit | 339,937 | 317,123 |
Brokered deposits | 228,898 | 217,732 |
Total deposits | 2,008,177 | 1,932,097 |
Federal Home Loan Bank advances | 55,000 | 56,039 |
Other borrowed funds | 464,804 | 476,939 |
Junior subordinated debentures | 44,101 | 44,024 |
Accrued interest and other liabilities | 40,313 | 35,645 |
Total liabilities | $ 2,612,395 | $ 2,544,744 |
Commitments and contingencies | ||
Shareholders’ Equity | ||
Common stock, no par value; authorized 20,000,000 shares, issued and outstanding 7,454,045 and 7,426,222 shares as of September 30, 2015 and December 31, 2014, respectively | $ 42,072 | $ 41,555 |
Retained earnings | 223,682 | 211,979 |
Accumulated other comprehensive income (loss): | ||
Net unrealized gains (losses) on available-for-sale securities, net of tax | 2,880 | (319) |
Net unrealized losses on derivative instruments, net of tax | (7,184) | (5,943) |
Net unrecognized losses on postretirement plans, net of tax | (2,047) | (2,163) |
Total accumulated other comprehensive loss | (6,351) | (8,425) |
Total shareholders’ equity | 259,403 | 245,109 |
Total liabilities and shareholders’ equity | $ 2,871,798 | $ 2,789,853 |
CONSOLIDATED STATEMENTS OF CON3
CONSOLIDATED STATEMENTS OF CONDITION (CURRENT PERIOD UNAUDITED) (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Common stock, no par value (dollars per share) | $ 0 | $ 0 |
Common stock, authorized | 20,000,000 | 20,000,000 |
Common stock, issued | 7,454,045 | 7,426,222 |
Common stock, outstanding | 7,454,045 | 7,426,222 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest Income | ||||
Interest and fees on loans | $ 18,651 | $ 18,112 | $ 56,077 | $ 52,649 |
Interest on U.S. government and sponsored enterprise obligations | 3,598 | 3,896 | 11,187 | 12,250 |
Interest on state and political subdivision obligations | 624 | 319 | 1,504 | 927 |
Interest on federal funds sold and other investments | 183 | 90 | 393 | 266 |
Total interest income | 23,056 | 22,417 | 69,161 | 66,092 |
Interest Expense | ||||
Interest on deposits | 1,557 | 1,562 | 4,630 | 4,678 |
Interest on borrowings | 849 | 848 | 2,556 | 2,500 |
Interest on junior subordinated debentures | 638 | 638 | 1,894 | 1,894 |
Total interest expense | 3,044 | 3,048 | 9,080 | 9,072 |
Net interest income | 20,012 | 19,369 | 60,081 | 57,020 |
Provision for credit losses | 279 | 539 | 979 | 1,675 |
Net interest income after provision for credit losses | 19,733 | 18,830 | 59,102 | 55,345 |
Non-Interest Income | ||||
Service charges on deposit accounts | 1,554 | 1,600 | 4,634 | 4,689 |
Other service charges and fees | 1,682 | 1,646 | 4,776 | 4,584 |
Income from fiduciary services | 1,177 | 1,212 | 3,725 | 3,745 |
Brokerage and insurance commissions | 411 | 441 | 1,362 | 1,378 |
Bank-owned life insurance | 443 | 377 | 1,267 | 975 |
Mortgage banking income, net | 390 | 55 | 975 | 197 |
Net gain on sale of securities | 4 | 0 | 4 | 451 |
Other income | 900 | 623 | 2,275 | 2,131 |
Total non-interest income | 6,561 | 5,954 | 19,018 | 18,150 |
Non-Interest Expense | ||||
Salaries and employee benefits | 8,691 | 8,078 | 25,550 | 24,359 |
Furniture, equipment and data processing | 1,705 | 1,704 | 5,530 | 5,236 |
Net occupancy | 1,194 | 1,175 | 3,905 | 3,825 |
Consulting and professional fees | 470 | 468 | 1,734 | 1,768 |
Other real estate owned and collection costs | 543 | 637 | 1,554 | 1,665 |
Regulatory assessments | 513 | 511 | 1,534 | 1,477 |
Amortization of intangible assets | 288 | 287 | 862 | 861 |
Merger and acquisition costs | 766 | 0 | 1,629 | 0 |
Other expenses | 2,541 | 2,319 | 7,371 | 6,905 |
Total non-interest expense | 16,711 | 15,179 | 49,669 | 46,096 |
Income before income taxes | 9,583 | 9,605 | 28,451 | 27,399 |
Income Taxes | 3,127 | 3,154 | 9,191 | 8,917 |
Net Income | $ 6,456 | $ 6,451 | $ 19,260 | $ 18,482 |
Per Share Data | ||||
Basic earnings per share (in dollars per share) | $ 0.86 | $ 0.87 | $ 2.58 | $ 2.47 |
Diluted earnings per share (in dollars per share) | $ 0.86 | $ 0.86 | $ 2.57 | $ 2.46 |
Weighted average number of common shares outstanding | 7,453,222 | 7,421,592 | 7,443,543 | 7,459,972 |
Diluted weighted average number of common shares outstanding | 7,477,039 | 7,439,948 | 7,464,484 | 7,479,327 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Net Income | $ 6,456 | $ 6,451 | $ 19,260 | $ 18,482 | |
Available-for-sale securities: | |||||
Net unrealized gains (losses) on available-for-sale securities arising during the period, net of tax of ($1,649), $1,189, ($1,723) and ($2,749), respectively | 3,064 | (2,208) | 3,202 | 5,106 | |
Reclassification of gains included in net income, net of tax of $0 and $58, respectively | [1] | (3) | 0 | (3) | (293) |
Net change in unrealized gains (losses) on available-for-sale securities, net of tax | 3,061 | (2,208) | 3,199 | 4,813 | |
Net change in unrealized losses on cash flow hedging derivatives, net of tax of $950, $50, $668, and $1,070, respectively | (1,763) | (93) | (1,241) | (1,988) | |
Reclassification of amortization of net unrecognized actuarial loss and prior service cost, net of tax of ($21) and ($15), respectively | [2] | 39 | 24 | 116 | 71 |
Other comprehensive income (loss) | 1,337 | (2,277) | 2,074 | 2,896 | |
Comprehensive Income | $ 7,793 | $ 4,174 | $ 21,334 | $ 21,378 | |
[1] | Reclassified into the consolidated statements of income in net gain on sale of securities. | ||||
[2] | Reclassified into the consolidated statements of income in salaries and employee benefits. |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Unrealized holding gains(losses) on securities available-for-sale arising during period, tax effects | $ (1,649) | $ 1,189 | $ (1,723) | $ (2,749) |
Reclassification adjustment for gains included in net income, tax effect | 1 | 0 | 1 | 158 |
Unrealized gain (loss) on cash flow hedging derivatives, tax effect | 950 | 50 | 668 | 1,070 |
Reclassification of amortization of prior service cost included in net periodic cost, tax effect | $ (20) | $ (13) | $ (61) | $ (40) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance (in shares) at Dec. 31, 2013 | 7,579,913 | |||
Beginning Balance at Dec. 31, 2013 | $ 231,096 | $ 47,783 | $ 195,660 | $ (12,347) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net Income | 18,482 | 18,482 | ||
Other comprehensive income, net of tax | 2,896 | 2,896 | ||
Stock-based compensation expense | 453 | $ 453 | ||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit (shares) | 23,037 | |||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit | 157 | $ 157 | ||
Common stock repurchased (in shares) | (181,355) | |||
Common stock repurchased | (7,155) | $ (7,155) | ||
Cash dividends declared ($0.81 and $0.90 per share) | (6,017) | (6,017) | ||
Ending Balance (in shares) at Sep. 30, 2014 | 7,421,595 | |||
Ending Balance at Sep. 30, 2014 | 239,912 | $ 41,238 | 208,125 | (9,451) |
Beginning Balance (in shares) at Dec. 31, 2014 | 7,426,222 | |||
Beginning Balance at Dec. 31, 2014 | 245,109 | $ 41,555 | 211,979 | (8,425) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net Income | 19,260 | 19,260 | ||
Other comprehensive income, net of tax | 2,074 | 2,074 | ||
Stock-based compensation expense | 542 | $ 542 | ||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit (shares) | 27,823 | |||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit | 512 | $ 512 | ||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | (537) | $ (537) | ||
Cash dividends declared ($0.81 and $0.90 per share) | (7,557) | (7,557) | ||
Ending Balance (in shares) at Sep. 30, 2015 | 7,454,045 | |||
Ending Balance at Sep. 30, 2015 | $ 259,403 | $ 42,072 | $ 223,682 | $ (6,351) |
CONSOLIDATED STATEMENTS OF CHA8
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash dividends declared, per share | $ 0.90 | $ 0.81 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Operating Activities | |||||
Net Income | $ 6,456 | $ 6,451 | $ 19,260 | $ 18,482 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Provision for credit losses | 279 | 539 | 979 | 1,675 | $ 2,220 |
Depreciation expense | 2,130 | 2,199 | |||
Investment securities amortization and accretion, net | 1,638 | 1,301 | |||
Stock-based compensation expense | 542 | 453 | |||
Amortization of intangible assets | 288 | 287 | 862 | 861 | |
Net gain on sale of investment securities | (4) | 0 | (4) | (451) | |
Net increase in other real estate owned valuation allowance and loss on disposition | 348 | 222 | |||
Originations of mortgage loans held for sale | (25,341) | (399) | |||
Proceeds from the sale of mortgage loans | 24,996 | 416 | |||
Gain on sale of mortgage loans | (541) | (17) | |||
Increase in other assets | (3,107) | (3,438) | |||
(Decrease) increase in other liabilities | (11) | 806 | |||
Net cash provided by operating activities | 21,751 | 22,110 | |||
Investing Activities | |||||
Proceeds from sales and maturities of available-for-sale securities | 123,650 | 105,818 | |||
Purchase of available-for-sale securities | (81,262) | (62,494) | |||
Purchase of held-to-maturity securities | (55,462) | (11,589) | |||
Net increase in loans | (60,601) | (148,967) | |||
Purchase of bank-owned life insurance | 0 | (10,000) | |||
Payments to Acquire Federal Home Loan Bank Stock | 56 | 706 | |||
Proceeds from sale of Federal Home Loan Bank and Federal Reserve Bank stock | 0 | 51 | |||
Proceeds from the sale of other real estate owned | 2,760 | 1,591 | |||
Recoveries of previously charged-off loans | 554 | 538 | |||
Purchase of premises and equipment | (1,797) | (831) | |||
Net cash used by investing activities | (72,214) | (126,589) | |||
Financing Activities | |||||
Net increase in deposits | 76,155 | 114,850 | |||
Proceeds from Federal Home Loan Bank Advances | 10,000 | 0 | |||
Repayments on Federal Home Loan Bank long-term advances | (11,039) | (54) | |||
Net (decrease) increase in other borrowed funds | (12,081) | 11,171 | |||
Registration statement costs | (537) | 0 | |||
Common stock repurchased | 0 | (7,475) | |||
Exercise of stock options and issuance of restricted stock, net of repurchase for tax withholdings and tax benefit | 512 | 157 | |||
Cash dividends paid on common stock | (6,716) | (6,075) | |||
Net cash provided by financing activities | 56,294 | 112,574 | |||
Net increase in cash and cash equivalents | 5,831 | 8,095 | |||
Cash and cash equivalents at beginning of period | 60,813 | 51,355 | 51,355 | ||
Cash and cash equivalents at end of period | $ 66,644 | $ 59,450 | 66,644 | 59,450 | $ 60,813 |
Supplemental information | |||||
Interest paid | 9,104 | 9,129 | |||
Income taxes paid | 8,345 | 10,147 | |||
Transfer from loans to other real estate owned | $ 1,725 | $ 1,184 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q and, therefore, do not include all disclosures required by accounting principles generally accepted in the United States of America for complete presentation of financial statements. In the opinion of management, the consolidated financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the consolidated statements of condition of Camden National Corporation as of September 30, 2015 and December 31, 2014 , the consolidated statements of income for the three and nine months ended September 30, 2015 and 2014 , the consolidated statements of comprehensive income for the three and nine months ended September 30, 2015 and 2014 , the consolidated statements of changes in shareholders' equity for the nine months ended September 30, 2015 and 2014 , and the consolidated statements of cash flows for the nine months ended September 30, 2015 and 2014 . All significant intercompany transactions and balances are eliminated in consolidation. Certain items from the prior period were reclassified to conform to the current period presentation. The income reported for the three and nine months ended September 30, 2015 is not necessarily indicative of the results that may be expected for the full year. The information in this report should be read in conjunction with the consolidated financial statements and accompanying notes included in the year ended December 31, 2014 Annual Report on Form 10-K. The acronyms and abbreviations identified below are used throughout this Form 10-Q, including Part I. "Financial Information" and Part II. "Other Information." The following is provided to aid the reader and provide a reference page when reviewing this Form 10-Q. Acadia Trust: Acadia Trust, N.A., a wholly-owned subsidiary of Camden National Corporation FASB: Financial Accounting Standards Board Act: Medicare Prescription Drug, Improvement and Modernization Act FDIC: Federal Deposit Insurance Corporation AFS: Available-for-sale FHLB: Federal Home Loan Bank ALCO: Asset/Liability Committee FHLBB: Federal Home Loan Bank of Boston ALL: Allowance for loan losses FRB: Federal Reserve Bank AOCI: Accumulated other comprehensive income (loss) Freddie Mac: Federal Home Loan Mortgage Corporation ASC: Accounting Standards Codification GAAP: Generally accepted accounting principles in the United States ASU: Accounting Standards Update HTM: Held-to-maturity Bank: Camden National Bank, a wholly-owned subsidiary of Camden National Corporation IRS: Internal Revenue Service BOLI: Bank-owned life insurance LIBOR: London Interbank Offered Rate Board ALCO: Board of Directors' Asset/Liability Committee LTIP: Long-Term Performance Share Plan BSA: Bank Secrecy Act Management ALCO: Management Asset/Liability Committee CCTA: Camden Capital Trust A, an unconsolidated entity formed by Camden National Corporation MBS: Mortgage-backed security CDARS: Certificate of Deposit Account Registry System Merger: On October 16, 2015, the two-step merger of Camden National Corporation, SBM Financial, Inc. and Atlantic Acquisitions, LLC, a wholly-owned subsidiary of Camden National Corporation, was completed CDs: Certificate of deposits Merger Agreement: Plan of Merger, dated as of March 29, 2015, by and among Camden National Corporation, SBM Financial, Inc. and Atlantic Acquisitions, LLC, a wholly-owned subsidiary of the Company Company: Camden National Corporation MSHA: Maine State Housing Authority CSV: Cash surrender value MSRs: Mortgage servicing rights CMO: Collateralized mortgage obligation MSPP: Management Stock Purchase Plan DCRP: Defined Contribution Retirement Plan OTTI: Other-than-temporary impairment EPS: Earnings per share NIM: Net interest margin on a fully-taxable basis N.M.: Not meaningful SERP: Supplemental executive retirement plans Non-Agency: Non-agency private issue collateralized mortgage obligation TDR: Troubled-debt restructured loan NRV: Net realizable value UBCT: Union Bankshares Capital Trust I, an unconsolidated entity formed by Union Bankshares Company that was subsequently acquired by Camden National Corporation OCC: Office of the Comptroller of the Currency U.S.: United States of America OCI: Other comprehensive income (loss) 2003 Plan: 2003 Stock Option and Incentive Plan OFAC: Office of Foreign Assets Control 2012 Plan: 2012 Equity and Incentive Plan OREO: Other real estate owned 2013 Repurchase Program: 2013 Common Stock Repurchase Program, approved by the Company's Board of Directors SBM: SBM Financial, Inc., the parent company of The Bank of Maine |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EPS The following is an analysis of basic and diluted EPS, reflecting the application of the two-class method, as described below: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Net income $ 6,456 $ 6,451 $ 19,260 $ 18,482 Dividends and undistributed earnings allocated to participating securities (1) (21 ) (20 ) (61 ) (57 ) Net income available to common shareholders $ 6,435 $ 6,431 $ 19,199 $ 18,425 Weighted-average common shares outstanding for basic EPS 7,453,222 7,421,592 7,443,543 7,459,972 Dilutive effect of stock-based awards (2) 23,817 18,356 20,941 19,355 Weighted-average common and potential common shares for diluted EPS 7,477,039 7,439,948 7,464,484 7,479,327 Earnings per common share: Basic EPS $ 0.86 $ 0.87 $ 2.58 $ 2.47 Diluted EPS $ 0.86 $ 0.86 $ 2.57 $ 2.46 Awards excluded from the calculation of diluted EPS (3) : Stock options 13,750 30,750 16,250 14,750 (1) Represents dividends paid and undistributed earnings allocated to nonvested stock-based awards that contain non-forfeitable rights to dividends. (2) Represents the effect of the assumed exercise of stock options, vesting of restricted shares, vesting of restricted stock units, and vesting of LTIP awards that have met the performance criteria, as applicable, utilizing the treasury stock method. (3) Represents stock-based awards not included in the computation of potential common shares for purposes of calculating diluted EPS as the exercise prices were greater than the average market price of the Company's common stock. Nonvested stock-based payment awards that contain non-forfeitable rights to dividends are participating securities and are included in the computation of EPS pursuant to the two-class method. The two-class method is an earnings allocation formula that determines EPS for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Certain of the Company’s nonvested stock-based awards qualify as participating securities. Net income is allocated between the common stock and participating securities pursuant to the two-class method. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period, excluding participating nonvested stock-based awards. Diluted EPS is computed in a similar manner, except that the denominator is increased to include the number of additional common shares that would have been outstanding if potentially dilutive common shares were issued using the treasury stock method. |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The following tables summarize the amortized cost and estimated fair values of AFS and HTM securities, as of the dates indicated: Amortized Cost Unrealized Gains Unrealized Losses Fair Value September 30, 2015 AFS Securities: Obligations of U.S. government-sponsored enterprises $ 4,969 $ 125 $ — $ 5,094 Obligations of states and political subdivisions 19,471 401 — 19,872 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 376,950 5,490 (1,391 ) 381,049 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 318,417 2,512 (2,707 ) 318,222 Total AFS securities $ 719,807 $ 8,528 $ (4,098 ) $ 724,237 HTM Securities: Obligations of states and political subdivisions $ 75,368 $ 1,311 $ (101 ) $ 76,578 Total HTM securities $ 75,368 $ 1,311 $ (101 ) $ 76,578 December 31, 2014 AFS Securities: Obligations of U.S. government-sponsored enterprises $ 4,962 $ 65 $ — $ 5,027 Obligations of states and political subdivisions 26,080 697 — 26,777 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 377,657 5,656 (2,005 ) 381,308 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 348,855 953 (5,911 ) 343,897 Private issue collateralized mortgage obligations 5,999 63 (8 ) 6,054 Total AFS securities $ 763,553 $ 7,434 $ (7,924 ) $ 763,063 HTM Securities: Obligations of states and political subdivisions $ 20,179 $ 265 $ (19 ) $ 20,425 Total HTM securities $ 20,179 $ 265 $ (19 ) $ 20,425 Net unrealized gains on AFS securities at September 30, 2015 included in AOCI amounted to $2.9 million , net of a deferred tax of $1.6 million . Net unrealized losses on AFS securities at December 31, 2014 included in AOCI amounted to $319,000 , net of a deferred tax benefit of $172,000 . During the first nine months of 2015, the Company purchased investment securities totaling $136.7 million . The Company designated $81.3 million as AFS securities and $55.4 million as HTM securities. Impaired Securities Management periodically reviews the Company’s investment portfolio to determine the cause, magnitude and duration of declines in the fair value of each security. Thorough evaluations of the causes of the unrealized losses are performed to determine whether the impairment is temporary or other-than-temporary in nature. Considerations such as the ability of the securities to meet cash flow requirements, levels of credit enhancements, risk of curtailment, recoverability of invested amount over a reasonable period of time, and the length of time the security is in a loss position, for example, are applied in determining OTTI. Once a decline in value is determined to be other-than-temporary, the value of the security is permanently reduced and a corresponding charge to earnings is recognized. The following table presents the estimated fair values and gross unrealized losses of investment securities that were in a continuous loss position at September 30, 2015 and December 31, 2014 , by length of time that individual securities in each category have been in a continuous loss position: Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses September 30, 2015 AFS Securities: Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises $ 53,164 $ (395 ) $ 57,721 $ (996 ) $ 110,885 $ (1,391 ) Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 12,183 (188 ) 145,289 (2,519 ) 157,472 (2,707 ) Total AFS securities $ 65,347 $ (583 ) $ 203,010 $ (3,515 ) $ 268,357 $ (4,098 ) HTM Securities: Obligations of states and political subdivisions $ 12,388 $ (101 ) $ — $ — $ 12,388 $ (101 ) Total HTM securities $ 12,388 $ (101 ) $ — $ — $ 12,388 $ (101 ) December 31, 2014 AFS Securities: Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises $ 42,856 $ (171 ) $ 125,439 $ (1,834 ) $ 168,295 $ (2,005 ) Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 75,723 (432 ) 182,512 (5,479 ) 258,235 (5,911 ) Private issue collateralized mortgage obligations 1,785 (8 ) — — 1,785 (8 ) Total AFS securities $ 120,364 $ (611 ) $ 307,951 $ (7,313 ) $ 428,315 $ (7,924 ) HTM Securities: Obligations of states and political subdivisions $ 5,756 $ (19 ) $ — $ — $ 5,756 $ (19 ) Total HTM securities $ 5,756 $ (19 ) $ — $ — $ 5,756 $ (19 ) At September 30, 2015 , the Company held 73 investment securities with a fair value of $280.7 million with unrealized losses totaling $ 4.2 million that are considered temporary. Of these, the Company had 34 MBS and CMO investments with a fair value of $ 203.0 million that have been in an unrealized loss position for 12 months or more. The decline in the fair value of securities is reflective of current interest rates in excess of the yield received on investments and is not indicative of an overall credit deterioration or other factors with the Company's investment portfolio. At September 30, 2015, gross unrealized losses on the Company's AFS and HTM securities were 1% of amortized cost. The Company has the intent and ability to retain its investment securities in an unrealized loss position at September 30, 2015 until the decline in value has recovered. Sale of Securities The following table details the Company’s sales of AFS securities for the period indicated below: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Proceeds from sales of securities $ 12,426 $ — $ 12,426 $ 25,695 Gross realized gains 221 — 221 451 Gross realized losses (217 ) — (217 ) — For the three months ended September 30, 2015 , the Company sold certain AFS securities with total carrying value of $12.4 million and recorded net gains on the sale of AFS securities of $4,000 within non-interest income in the consolidated statements of income. As part of the Company’s securities portfolio restructuring due to its pending merger with SBM as of September 30, 2015 (which subsequently was completed on October 16, 2015) it sold all of its Non-Agency investments in the quarter ended September 30, 2015, along with $7.3 million of MBS investments experiencing high prepayment speeds. The Company recorded a net gain of $4,000 from the sale of its Non-Agency and MBS investments. The Company had previously recorded OTTI on its Non-Agency investments of $204,000 . For the three months ended September 30, 2014 , the Company did no t sell any investment securities. For the nine months ended September 30, 2015 , the Company sold certain AFS securities with total carrying value of $12.4 million and recorded net gains on sale of AFS securities of $4,000 within non-interest income in the consolidated statements of income. For the nine months ended September 30, 2014 , the Company sold certain AFS securities with a total carrying value of $25.2 million and recorded net gains on the sale of AFS securities of $451,000 within non-interest income in the consolidated statements of income. Securities Pledged At September 30, 2015 and December 31, 2014 , securities with an amortized cost of $508.9 million and $486.2 million , respectively, and estimated fair values of $510.3 million and $485.6 million , respectively, were pledged to secure FHLBB advances, public deposits, and securities sold under agreements to repurchase and for other purposes required or permitted by law. Contractual Maturities The amortized cost and estimated fair values of debt securities by contractual maturity at September 30, 2015 , are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value AFS Securities Due in one year or less $ 3,594 $ 3,634 Due after one year through five years 87,212 88,411 Due after five years through ten years 110,852 113,415 Due after ten years 518,149 518,777 $ 719,807 $ 724,237 HTM Securities Due in one year or less $ — $ — Due after one year through five years 2,234 2,290 Due after five years through ten years 1,134 1,143 Due after ten years 72,000 73,145 $ 75,368 $ 76,578 |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 9 Months Ended |
Sep. 30, 2015 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | LOANS AND ALLOWANCE FOR LOAN LOSSES The composition of the Company’s loan portfolio, excluding residential loans held for sale, at September 30, 2015 and December 31, 2014 was as follows: September 30, December 31, Residential real estate $ 583,424 $ 585,996 Commercial real estate 690,935 640,661 Commercial 258,105 257,515 Home equity 281,492 271,709 Consumer 16,535 17,257 Net deferred fees (348 ) (528 ) Total $ 1,830,143 $ 1,772,610 The Company’s lending activities are primarily conducted in Maine, and its footprint continues to expand into other New England states, including New Hampshire and Massachusetts. The Company originates single family and multi-family residential loans, commercial real estate loans, business loans, municipal loans and a variety of consumer loans. In addition, the Company makes loans for the construction of residential homes, multi-family properties and commercial real estate properties. The ability and willingness of borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity within the geographic area and the general economy. The ALL is management’s best estimate of the inherent risk of loss in the Company’s loan portfolio as of the consolidated statement of condition date. Management makes various assumptions and judgments about the collectability of the loan portfolio and provides an allowance for potential losses based on a number of factors including historical losses. If those assumptions are incorrect, the ALL may not be sufficient to cover losses and may cause an increase in the allowance in the future. Among the factors that could affect the Company’s ability to collect loans and require an increase to the allowance in the future are: (i) financial condition of borrowers; (ii) real estate market changes; (iii) state, regional, and national economic conditions; and (iv) a requirement by federal and state regulators to increase the provision for loan losses or recognize additional charge-offs. There were no significant changes in the Company's ALL methodology during the nine months ended September 30, 2015 . The board of directors monitors credit risk through the Directors' Loan Review Committee, which reviews large credit exposures, monitors the external loan review reports, reviews the lending authority for individual loan officers when required, and has approval authority and responsibility for all matters regarding the loan policy and other credit-related policies, including reviewing and monitoring asset quality trends, concentration levels, and the ALL methodology. The Corporate Risk Management Group and the Credit Risk Policy Committee oversee the Company's systems and procedures to monitor the credit quality of its loan portfolio, conduct a loan review program, maintain the integrity of the loan rating system, determine the adequacy of the ALL and support the oversight efforts of the Directors' Loan Review Committee and the board of directors. The Company's practice is to proactively manage the portfolio such that management can identify problem credits early, assess and implement effective work-out strategies, and take charge-offs as promptly as practical. In addition, the Company continuously reassesses its underwriting standards in response to credit risk posed by changes in economic conditions. For purposes of determining the ALL, the Company disaggregates its loans into portfolio segments, which include residential real estate, commercial real estate, commercial, home equity, and consumer. Each portfolio segment possesses unique risk characteristics that are considered when determining the appropriate level of allowance. These risk characteristics unique to each portfolio segment include: Residential Real Estate . Residential real estate loans held in the Company's loan portfolio are made to borrowers who demonstrate the ability to make scheduled payments with full consideration to underwriting factors. Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan-to-value ratios within established policy guidelines. Collateral consists of mortgage liens on one- to four-family residential properties. Commercial Real Estate. Commercial real estate loans consist of mortgage loans to finance investments in real property such as multi-family residential, commercial/retail, office, industrial, hotels, educational, health care facilities and other specific use properties. Commercial real estate loans are typically written with amortizing payment structures. Collateral values are determined based upon appraisals and evaluations in accordance with established policy guidelines. Loan-to-value ratios at origination are governed by established policy and regulatory guidelines. Commercial real estate loans are primarily paid by the cash flow generated from the real property, such as operating leases, rents, or other operating cash flows from the borrower. Commercial. Commercial loans consist of revolving and term loan obligations extended to business and corporate enterprises for the purpose of financing working capital and/or capital investment. Collateral generally consists of pledges of business assets including, but not limited to, accounts receivable, inventory, plant & equipment, or real estate, if applicable. Commercial loans are primarily paid by the operating cash flow of the borrower. Commercial loans may be secured or unsecured. Home Equity. Home equity loans and lines are made to qualified individuals for legitimate purposes secured by senior or junior mortgage liens on owner-occupied one- to four-family homes, condominiums, or vacation homes. The home equity loan has a fixed rate and is billed as equal payments comprised of principal and interest. The home equity line of credit has a variable rate and is billed as interest-only payments during the draw period. At the end of the draw period, the home equity line of credit is billed as a percentage of the principal balance plus all accrued interest. Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan-to-value ratios within established policy guidelines. Consumer. Consumer loan products including personal lines of credit and amortizing loans made to qualified individuals for various purposes such as education, auto loans, debt consolidation, personal expenses or overdraft protection. Borrower qualifications include favorable credit history combined with supportive income and collateral requirements within established policy guidelines. Consumer loans may be secured or unsecured. The following table presents the activity in the ALL and select loan information by portfolio segment for the three and nine months ended September 30, 2015 and 2014, and for the year ended December 31, 2014: Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer Unallocated Total For The Three and Nine Months Ended September 30, 2015 ALL for the three months ended: Beginning balance $ 4,689 $ 4,698 $ 6,777 $ 2,144 $ 268 $ 2,618 $ 21,194 Loans charged off (176 ) (71 ) (144 ) (198 ) (23 ) — (612 ) Recoveries 15 4 115 132 3 — 269 Provision (credit) (1) 4 661 85 (6 ) 13 (476 ) 281 Ending balance $ 4,532 $ 5,292 $ 6,833 $ 2,072 $ 261 $ 2,142 $ 21,132 ALL for the nine months ended: Beginning balance $ 4,899 $ 4,482 $ 6,823 $ 2,247 $ 281 $ 2,384 $ 21,116 Loans charged off (468 ) (174 ) (387 ) (439 ) (42 ) — (1,510 ) Recoveries 35 68 297 137 17 — 554 Provision (credit) (1) 66 916 100 127 5 (242 ) 972 Ending balance $ 4,532 $ 5,292 $ 6,833 $ 2,072 $ 261 $ 2,142 $ 21,132 ALL balance attributable to loans: Individually evaluated for impairment $ 956 $ 352 $ 192 $ 276 $ 89 $ — $ 1,865 Collectively evaluated for impairment 3,576 4,940 6,641 1,796 172 2,142 19,267 Total ending ALL $ 4,532 $ 5,292 $ 6,833 $ 2,072 $ 261 $ 2,142 $ 21,132 Loans: Individually evaluated for impairment $ 7,499 $ 4,711 $ 1,720 $ 1,037 $ 206 $ — $ 15,173 Collectively evaluated for impairment 575,577 686,224 256,385 280,455 16,329 — 1,814,970 Total ending loans balance $ 583,076 $ 690,935 $ 258,105 $ 281,492 $ 16,535 $ — $ 1,830,143 Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer Unallocated Total For The Three and Nine Months Ended September 30, 2014 ALL for the three months ended: Beginning balance $ 5,141 $ 4,361 $ 6,484 $ 2,752 $ 318 $ 2,849 $ 21,905 Loans charged off (9 ) (100 ) (675 ) (166 ) (59 ) — (1,009 ) Recoveries 2 17 117 8 11 — 155 Provision (credit) (1) 122 82 35 (63 ) 23 335 534 Ending balance $ 5,256 $ 4,360 $ 5,961 $ 2,531 $ 293 $ 3,184 $ 21,585 ALL for the nine months ended: Beginning balance $ 5,603 $ 4,374 $ 6,220 $ 2,403 $ 319 $ 2,671 $ 21,590 Loans charged off (370 ) (276 ) (1,201 ) (272 ) (99 ) — (2,218 ) Recoveries 136 67 286 19 30 — 538 Provision (credit) (1) (113 ) 195 656 381 43 513 1,675 Ending balance $ 5,256 $ 4,360 $ 5,961 $ 2,531 $ 293 $ 3,184 $ 21,585 ALL balance attributable to loans: Individually evaluated for impairment $ 1,420 $ 222 $ 121 $ 573 $ 111 $ — $ 2,447 Collectively evaluated for impairment 3,836 4,138 5,840 1,958 182 3,184 19,138 Total ending ALL $ 5,256 $ 4,360 $ 5,961 $ 2,531 $ 293 $ 3,184 $ 21,585 Loans: Individually evaluated for impairment $ 10,964 $ 6,710 $ 3,380 $ 1,860 $ 309 $ — $ 23,223 Collectively evaluated for impairment 566,134 606,800 242,232 269,998 17,840 — 1,703,004 Total ending loans balance $ 577,098 $ 613,510 $ 245,612 $ 271,858 $ 18,149 $ — $ 1,726,227 For The Year Ended December 31, 2014 ALL: Beginning balance $ 5,603 $ 4,374 $ 6,220 $ 2,403 $ 319 $ 2,671 $ 21,590 Loans charged off (785 ) (361 ) (1,544 ) (611 ) (143 ) — (3,444 ) Recoveries 165 135 395 19 32 — 746 Provision (credit) (1) (84 ) 334 1,752 436 73 (287 ) 2,224 Ending balance $ 4,899 $ 4,482 $ 6,823 $ 2,247 $ 281 $ 2,384 $ 21,116 ALL balance attributable to loans: Individually evaluated for impairment $ 1,220 $ 251 $ 168 $ 496 $ 104 $ — $ 2,239 Collectively evaluated for impairment 3,679 4,231 6,655 1,751 177 2,384 18,877 Total ending ALL $ 4,899 $ 4,482 $ 6,823 $ 2,247 $ 281 $ 2,384 $ 21,116 Loans: Individually evaluated for impairment $ 9,656 $ 7,658 $ 1,853 $ 1,741 $ 271 $ — $ 21,179 Collectively evaluated for impairment 575,812 633,003 255,662 269,968 16,986 — 1,751,431 Total ending loans balance $ 585,468 $ 640,661 $ 257,515 $ 271,709 $ 17,257 $ — $ 1,772,610 (1) The provision (credit) for loan losses excludes any impact for the change in the reserve for unfunded commitments, which represents management's estimate of the amount required to reflect the probable inherent losses on outstanding letters of credit and unused lines of credit. The reserve for unfunded commitments is presented within accrued interest and other liabilities on the consolidated statements of condition. At September 30, 2015 and 2014, and December 31, 2014, the reserve for unfunded commitments was $24,000 , $21,000 and $17,000 , respectively. The following table reconciles the three and nine months ended September 30, 2015 and 2014, and year ended December 31, 2014 provision for loan losses to the provision for credit losses as presented on the consolidated statement of income: Three Months Ended September 30, Nine Months Ended Year Ended December 31, 2015 2014 2015 2014 2014 Provision for loan losses $ 281 $ 534 $ 972 $ 1,675 $ 2,224 Change in reserve for unfunded commitments (2 ) 5 7 — (4 ) Provision for credit losses $ 279 $ 539 $ 979 $ 1,675 $ 2,220 The Company focuses on maintaining a well-balanced and diversified loan portfolio. Despite such efforts, it is recognized that credit concentrations may occasionally emerge as a result of economic conditions, changes in local demand, natural loan growth and runoff. To ensure that credit concentrations can be effectively identified, all commercial and commercial real estate loans are assigned Standard Industrial Classification codes, North American Industry Classification System codes, and state and county codes. Shifts in portfolio concentrations are monitored by the Corporate Risk Management Group. As of September 30, 2015 , the non-residential building operators industry exposure was 11% of the Company's total loan portfolio and 28% of the total commercial real estate portfolio. There were no other industry exposures exceeding 10% of the Company's total loan portfolio as of September 30, 2015. To further identify loans with similar risk profiles, the Company categorizes each portfolio segment into classes by credit risk characteristic and applies a credit quality indicator to each portfolio segment. The indicators for commercial, commercial real estate and residential real estate loans are represented by Grades 1 through 10 as outlined below. In general, risk ratings are adjusted periodically throughout the year as updated analysis and review warrants. This process may include, but is not limited to, annual credit and loan reviews, periodic reviews of loan performance metrics, such as delinquency rates, and quarterly reviews of adversely risk rated loans. The Company uses the following definitions when assessing grades for the purpose of evaluating the risk and adequacy of the ALL: • Grade 1 through 6 — Grades 1 through 6 represent groups of loans that are not subject to adverse criticism as defined in regulatory guidance. Loans in these groups exhibit characteristics that represent low to moderate risks, which is measured using a variety of credit risk criteria, such as cash flow coverage, debt service coverage, balance sheet leverage, liquidity, management experience, industry position, prevailing economic conditions, support from secondary sources of repayment and other credit factors that may be relevant to a specific loan. In general, these loans are supported by properly margined collateral and guarantees of principal parties. • Grade 7 — Loans with potential weakness (Special Mention). Loans in this category are currently protected based on collateral and repayment capacity and do not constitute undesirable credit risk, but have potential weakness that may result in deterioration of the repayment process at some future date. This classification is used if a negative trend is evident in the obligor’s financial situation. Special mention loans do not sufficiently expose the Company to warrant adverse classification. • Grade 8 — Loans with definite weakness (Substandard). Loans classified as substandard are inadequately protected by the current sound worth and paying capacity of the obligor or by collateral pledged. Borrowers experience difficulty in meeting debt repayment requirements. Deterioration is sufficient to cause the Company to look to the sale of collateral. • Grade 9 — Loans with potential loss (Doubtful). Loans classified as doubtful have all the weaknesses inherent in the substandard grade with the added characteristic that the weaknesses make collection or liquidation of the loan in full highly questionable and improbable. The possibility of some loss is extremely high, but because of specific pending factors that may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined. • Grade 10 — Loans with definite loss (Loss). Loans classified as loss are considered uncollectible. The loss classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the asset because recovery and collection time may be protracted. Asset quality indicators are periodically reassessed to appropriately reflect the risk composition of the Company’s loan portfolio. Home equity and consumer loans are not individually risk rated, but rather analyzed as groups taking into account delinquency rates and other economic conditions which may affect the ability of borrowers to meet debt service requirements, including interest rates and energy costs. Performing loans include loans that are current and loans that are past due less than 90 days. Loans that are past due over 90 days and non-accrual loans, including TDRs, are considered non-performing. The following table summarizes credit risk exposure indicators by portfolio segment as of the following dates: Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer Total September 30, 2015 Pass (Grades 1-6) $ 573,229 $ 647,831 $ 247,817 $ — $ — $ 1,468,877 Performing — — — 280,455 16,329 296,784 Special Mention (Grade 7) 2,599 12,689 5,881 — — 21,169 Substandard (Grade 8) 7,248 30,415 4,407 — — 42,070 Non-performing — — — 1,037 206 1,243 Total $ 583,076 $ 690,935 $ 258,105 $ 281,492 $ 16,535 $ 1,830,143 December 31, 2014 Pass (Grades 1-6) $ 572,589 $ 606,387 $ 244,930 $ — $ — $ 1,423,906 Performing — — — 269,968 16,986 286,954 Special Mention (Grade 7) 3,579 4,690 6,023 — — 14,292 Substandard (Grade 8) 9,300 29,584 6,562 — — 45,446 Non-performing — — — 1,741 271 2,012 Total $ 585,468 $ 640,661 $ 257,515 $ 271,709 $ 17,257 $ 1,772,610 The Company closely monitors the performance of its loan portfolio. A loan is placed on non-accrual status when the financial condition of the borrower is deteriorating, payment in full of both principal and interest is not expected as scheduled or principal or interest has been in default for 90 days or more. Exceptions may be made if the asset is well-secured by collateral sufficient to satisfy both the principal and accrued interest in full and collection is reasonably assured. When one loan to a borrower is placed on non-accrual status, all other loans to the borrower are re-evaluated to determine if they should also be placed on non-accrual status. All previously accrued and unpaid interest is reversed at this time. A loan may be returned to accrual status when collection of principal and interest is assured and the borrower has demonstrated timely payments of principal and interest for a reasonable period. Unsecured loans, however, are not normally placed on non-accrual status because they are charged-off once their collectability is in doubt. The following is a loan aging analysis by portfolio segment (including loans past due over 90 days and non-accrual loans) and a summary of non-accrual loans, which include TDRs, and loans past due over 90 days and accruing as of the following dates: 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Outstanding Loans > 90 Days Past Due and Accruing Non-Accrual Loans September 30, 2015 Residential real estate $ 977 $ 303 $ 3,199 $ 4,479 $ 578,597 $ 583,076 $ — $ 4,149 Commercial real estate 1,997 64 1,964 4,025 686,910 690,935 — 3,384 Commercial 669 51 1,107 1,827 256,278 258,105 — 1,383 Home equity 211 35 811 1,057 280,435 281,492 — 1,037 Consumer 55 25 183 263 16,272 16,535 — 206 Total $ 3,909 $ 478 $ 7,264 $ 11,651 $ 1,818,492 $ 1,830,143 $ — $ 10,159 December 31, 2014 Residential real estate $ 1,206 $ 426 $ 4,531 $ 6,163 $ 579,305 $ 585,468 $ — $ 6,056 Commercial real estate 1,696 — 3,791 5,487 635,174 640,661 — 7,043 Commercial 456 269 1,139 1,864 255,651 257,515 — 1,529 Home equity 889 88 1,129 2,106 269,603 271,709 — 1,741 Consumer 28 — 254 282 16,975 17,257 — 271 Total $ 4,275 $ 783 $ 10,844 $ 15,902 $ 1,756,708 $ 1,772,610 $ — $ 16,640 Interest income that would have been recognized if loans on non-accrual status had been current in accordance with their original terms was $103,000 and $192,000 for the three months ended September 30, 2015 and 2014 , respectively, and $375,000 and $647,000 for the nine months ended September 30, 2015 and 2014 , respectively. TDRs: The Company takes a conservative approach with credit risk management and remains focused on community lending and reinvesting. The Company works closely with borrowers experiencing credit problems to assist in loan repayment or term modifications. TDR loans consist of loans where the Company, for economic or legal reasons related to the borrower’s financial difficulties, granted a concession to the borrower that it would not otherwise consider. TDRs, typically, involve term modifications or a reduction of either interest or principal. Once such an obligation has been restructured, it will remain a TDR until paid in full, or until the loan is again restructured at current market rates and no concessions are granted. The specific reserve allowance was determined by discounting the total expected future cash flows from the borrower at the original loan interest rate, or if the loan is currently collateral-dependent, using the NRV, which was obtained through independent appraisals and internal evaluations. The following is a summary of TDRs, by portfolio segment, and the associated specific reserve included within the ALL as of: Number of Contracts Recorded Investment Specific Reserve September 30, 2015 December 31, 2014 September 30, December 31, 2014 September 30, December 31, 2014 Residential real estate 22 24 $ 3,452 $ 3,786 $ 568 $ 635 Commercial real estate 6 7 1,573 1,702 48 — Commercial 9 9 413 426 11 10 Home equity 1 1 23 29 — — Total 38 41 $ 5,461 $ 5,943 $ 627 $ 645 At September 30, 2015 , the Company had performing and non-performing TDRs with a recorded investment balance of $5.0 million and $473,000 , respectively. At December 31, 2014, the Company had performing and non-performing TDRs with a recorded investment balance of $4.5 million and $1.4 million , respectively. As of September 30, 2015 and December 31, 2014, the Company did not have any commitments to lend additional funds to borrowers with loans classified as TDRs. The following represents loan modifications that occurred during the three and nine months ended September 30, 2015 and 2014 that qualify as TDRs, by portfolio segment, and the associated specific reserve included within the ALL: Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Specific Reserve September 30, September 30, September 30, September 30, 2015 2014 2015 2014 2015 2014 2015 2014 For the Three Months Ended: Residential real estate 1 — $ 74 $ — $ 78 $ — $ — $ — Commercial real estate — 1 — 235 — 235 — — Commercial — 3 — 77 — 77 — 9 Consumer and home equity — 1 — 40 — 30 — — Total 1 5 $ 74 $ 352 $ 78 $ 342 $ — $ 9 For the Nine Months Ended: Residential real estate 1 1 $ 74 $ 136 $ 78 $ 149 $ — $ 44 Commercial real estate — 1 — 235 — 235 — — Commercial — 3 — 77 — 77 — 9 Consumer and home equity — 1 — 40 — 30 — — Total 1 6 $ 74 $ 488 $ 78 $ 491 $ — $ 53 For the three and nine months ended September 30, 2015 and 2014, no loans were modified as TDRs within the previous 12 months for which the borrower subsequently defaulted. Impaired Loans: Impaired loans consist of non-accrual loans and TDRs. All impaired loans are allocated a portion of the allowance to cover potential losses. The following is a summary of impaired loan balances and associated allowance by portfolio segment as of and for the three and nine months ended September 30, 2015 and 2014: Three Months Ended Nine Months Ended Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (1) Average Interest September 30, 2015: With an allowance recorded: Residential real estate $ 5,880 $ 5,880 $ 956 $ 7,618 $ 55 $ 6,963 $ 82 Commercial real estate 1,442 1,475 352 2,161 — 1,930 — Commercial 1,016 1,016 192 1,320 5 1,188 6 Home equity 834 834 276 1,410 — 1,099 — Consumer 189 189 89 248 — 229 — Ending Balance 9,361 9,394 1,865 12,757 60 11,409 88 Without an allowance recorded: Residential real estate 1,619 2,118 — 1,774 4 1,607 6 Commercial real estate 3,269 3,430 — 3,102 18 2,735 45 Commercial 704 876 — 503 4 567 8 Home equity 203 454 — 303 — 390 — Consumer 17 37 — 17 — 17 — Ending Balance 5,812 6,915 — 5,699 26 5,316 59 Total impaired loans $ 15,173 $ 16,309 $ 1,865 $ 18,456 $ 86 $ 16,725 $ 147 September 30, 2014: With an allowance recorded: Residential real estate $ 9,441 $ 9,441 $ 1,420 $ 9,236 $ 38 $ 9,928 $ 102 Commercial real estate 2,987 2,987 222 3,142 1 5,588 2 Commercial 1,562 1,562 121 2,724 (2 ) 2,653 8 Home equity 1,510 1,510 573 1,486 — 1,571 — Consumer 292 292 111 333 — 392 — Ending Balance 15,792 15,792 2,447 16,921 37 20,132 112 Without an allowance recorded: Residential real estate 1,523 1,880 — 1,751 2 2,340 5 Commercial real estate 3,723 4,116 — 3,490 14 2,230 43 Commercial 1,818 2,318 — 870 6 609 8 Home equity 350 477 — 403 — 415 — Consumer 17 37 — 17 — 17 — Ending Balance 7,431 8,828 — 6,531 22 5,611 56 Total impaired loans $ 23,223 $ 24,620 $ 2,447 $ 23,452 $ 59 $ 25,743 $ 168 (1) Negative interest income represents the re-allocation of income between "with an allowance recorded" and "without an allowance recorded" (or vice versa) during the period. The following is a summary of impaired loan balances and associated allowance by portfolio segment as of and for the year ended December 31, 2014 : Year Ended Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With an allowance recorded: Residential real estate $ 7,713 $ 7,713 $ 1,220 $ 9,524 $ 125 Commercial real estate 3,419 3,419 251 4,911 — Commercial 1,390 1,390 168 2,466 8 Home equity 1,410 1,410 496 1,545 — Consumer 254 254 104 358 — Ending Balance 14,186 14,186 2,239 18,804 133 Without an allowance recorded: Residential real estate 1,943 2,604 — 2,257 13 Commercial real estate 4,239 4,502 — 2,869 59 Commercial 463 606 — 791 11 Home equity 331 581 — 399 — Consumer 17 37 — 21 — Ending Balance 6,993 8,330 — 6,337 83 Total impaired loans $ 21,179 $ 22,516 $ 2,239 $ 25,141 $ 216 Loan Sales: For the three months ended September 30, 2015 and 2014, the Company sold $11.9 million and $0 , respectively, of fixed rate residential mortgage loans on the secondary market that resulted in net gains on the sale of loans of $249,000 and $0 , respectively. For the nine months ended September 30, 2015 and 2014, the Company sold $24.5 million and $399,000 of fixed rate residential mortgage loans on the secondary market that resulted in net gains on the sale of loans of $541,000 and $17,000 , respectively. At September 30, 2015 , the Company had certain fixed rate mortgage loans with a total principal of $890,000 designated as held for sale. The Company has elected to record its loans held for sale at fair value. At September 30, 2015 , the Company recorded an unrealized gain of $4,000 within non-operating income on its consolidated statements of income for the three months ended September 30, 2015 . The company did no t have any loans designated as held for sale at September 30, 2014 . OREO: The Company records its properties obtained through foreclosure or deed-in-lieu of foreclosure as OREO properties on the consolidated statements of condition at NRV. At September 30, 2015 , the Company had three residential real estate properties with a carrying value of $204,000 within OREO. At December 31, 2014, the Company had 11 residential real estate properties and six commercial properties with a carrying value of $575,000 and $1.0 million , respectively, within OREO. In-Process Foreclosure Proceedings: At September 30, 2015 and December 31, 2014 , the Company had $2.6 million and $4.9 million , respectively, of consumer mortgage loans secured by residential real estate properties for which foreclosure proceedings were in process, representing 48% and 61% , respectively, of non-accrual loans within the Company's residential, consumer and home equity portfolios. The Company continues to be focused on working these consumer mortgage loans through the foreclosure process to resolution; however, the foreclosure process, typically, will take 18 to 24 months due to the State of Maine foreclosure laws. FHLB Advances: FHLB advances are those borrowings from the FHLBB greater than 90 days. FHLB advances are collateralized by a blanket lien on qualified collateral consisting primarily of loans with first mortgages secured by one- to four-family properties, certain commercial real estate loans, certain pledged investment securities and other qualified assets. The carrying value of residential real estate and commercial loans pledged as collateral was $830.6 million and $843.2 million at September 30, 2015 and December 31, 2014, respectively. Refer to Note 3 and 9 of the consolidated financial statements for discussion of securities pledged as collateral. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSESTS | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The Company has recognized goodwill and certain identifiable intangible assets in connection with certain business combinations in prior years. Goodwill as of September 30, 2015 and December 31, 2014 for each reporting unit is shown in the table below: Goodwill Banking Financial Services Total September 30, 2015 and December 31, 2014: Goodwill, gross $ 40,902 $ 7,474 $ 48,376 Accumulated impairment losses — (3,570 ) (3,570 ) Reported goodwill at September 30, 2015 and December 31, 2014 $ 40,902 $ 3,904 $ 44,806 The changes in core deposit and trust relationship intangible assets for the nine months ended September 30, 2015 are shown in the table below: Core Deposit Intangible Trust Relationship Intangible Total Accumulated Amortization Net Total Accumulated Amortization Net Balance at December 31, 2014 $ 17,300 $ (14,161 ) $ 3,139 $ 753 $ (527 ) $ 226 2015 amortization — (805 ) (805 ) — (57 ) (57 ) Balance at September 30, 2015 $ 17,300 $ (14,966 ) $ 2,334 $ 753 $ (584 ) $ 169 It is estimated that core deposit and trust relationship intangible assets will be fully amortized by December 31, 2017. The following table reflects the expected amortization of core deposit and trust relationship intangible assets over their respective estimated remaining useful lives as of September 30, 2015 : Core Deposit Intangible Trust Relationship Intangible 2015 $ 269 $ 19 2016 1,073 75 2017 992 75 Total $ 2,334 $ 169 |
REGULATORY CAPITAL (Notes)
REGULATORY CAPITAL (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | The Company and Bank are subject to various regulatory capital requirements administered by the FRB and the OCC. Failure to meet minimum capital requirements can result in mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Effective January 1, 2015, the Company implemented the Basel III regulatory capital framework. These new rules and framework revised minimum capital requirements and adjusted prompt corrective action thresholds. The Company and Bank are required to maintain certain levels of capital based on risk-adjusted assets. These capital requirements represent quantitative measures of our assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company and Bank's capital classification is also subject to qualitative judgments by our regulators about components, risk weightings and other factors. Under the Basel III regulatory capital framework, the quantitative measures established to ensure capital adequacy require us to maintain minimum amounts and ratios of total, Tier I capital, and common equity Tier I (as defined in the applicable regulations) to risk-weighted assets (as defined in the applicable regulations), and of Tier I capital to average assets, or leverage ratio (as defined in the applicable regulations). These guidelines apply to the Company on a consolidated basis. Under the current guidelines, banking organizations must have a minimum total risk-based capital ratio of 8.0% , a minimum Tier I risk-based capital ratio of 6.0% , a minimum common equity Tier I risk-based capital ratio of 4.5% , and a minimum leverage ratio of 4.0% . In addition to these requirements, banking organization must maintain a 2.5% capital conservation buffer consisting of common Tier I equity, subject to a transition schedule with a full phase-in by 2019. The Company and Bank's risk-based capital ratios exceeded regulatory guidelines at September 30, 2015 under the newly implemented Basel III regulatory capital framework. The Company and Bank's risk-based capital ratios under prior rules at December 31, 2014 also exceeded regulatory capital requirements under previous regulatory capital requirements in place. The following table presents the Company and Bank's regulatory capital ratios at the periods indicated: Current Regulatory Guidance Prior Regulatory Guidance September 30, Minimum Regulatory Capital Required Minimum Regulatory Provision To Be "Well Capitalized" Under Prompt Corrective Action Provisions December 31, Minimum Regulatory Capital Required Minimum Regulatory Provision To Be "Well Capitalized" Under Prompt Corrective Action Provisions Camden National Corporation: Total risk-based capital ratio 14.76 % 8.00 % N/A 15.16 % 8.00 % N/A Tier I risk-based capital ratio 13.67 % 6.00 % N/A 13.97 % 4.00 % N/A Common equity Tier I risk-based capital ratio (1) 11.44 % 4.50 % N/A N/A N/A N/A Tier I leverage capital ratio 9.41 % 4.00 % N/A 9.26 % 4.00 % N/A Camden National Bank: Total risk-based capital ratio 13.47 % 8.00 % 10.00 % 13.85 % 8.00 % 10.00 % Tier I risk-based capital ratio 12.37 % 6.00 % 8.00 % 12.65 % 4.00 % 6.00 % Common equity Tier I risk-based capital ratio (1) 12.37 % 4.50 % 6.50 % N/A N/A N/A Tier I leverage capital ratio 8.52 % 4.00 % 5.00 % 8.38 % 4.00 % 5.00 % (1) Common equity Tier I risk-based capital ratio was a new risk-based capital ratio implemented with Basel III on January 1, 2015. In addition, the OCC requires a minimum level of $2.5 million of Tier I capital to be maintained at Acadia Trust. As of September 30, 2015 and December 31, 2014, Acadia Trust met all of its capital requirements. Although the junior subordinated debentures are recorded as a liability on the Company's consolidated statements of condition, the Company is permitted, in accordance with regulatory guidelines, to include, subject to certain limits, the junior subordinated debentures in our calculation of risk-based capital. At September 30, 2015 and December 31, 2014, $43.0 million of the junior subordinated debentures were included in Tier I and total risk-based capital for the Company. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS The Company sponsors unfunded, non-qualified SERPs for certain officers and provides medical and life insurance to certain eligible retired employees. The components of net period benefit cost for the periods ended September 30, 2015 and 2014 were as follows: Supplemental Executive Retirement Plan: Three Months Ended Nine Months Ended September 30, Net periodic benefit cost 2015 2014 2015 2014 Service cost $ 77 $ 67 $ 231 $ 201 Interest cost 106 114 318 342 Recognized net actuarial loss 54 35 162 105 Recognized prior service cost 5 5 15 15 Net period benefit cost (1) $ 242 $ 221 $ 726 $ 663 (1) Presented within the consolidated statements of income within salaries and employee benefits. Other Postretirement Benefit Plan: Three Months Ended September 30, Nine Months Ended September 30, Net periodic benefit cost 2015 2014 2015 2014 Service cost $ 15 $ 11 $ 45 $ 33 Interest cost 29 33 87 99 Recognized net actuarial loss 6 2 18 6 Amortization of prior service credit (6 ) (5 ) (18 ) (15 ) Net period benefit cost (1) $ 44 $ 41 $ 132 $ 123 (1) Presented within the consolidated statements of income within salaries and employee benefits. |
REPURCHASE AGREEMENTS (Notes)
REPURCHASE AGREEMENTS (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Banking and Thrift [Abstract] | |
REPURCHASE AGREEMENTS | NOTE 9 – REPURCHASE AGREEMENTS The Company can raise additional liquidity by entering into repurchase agreements at its discretion. In a security repurchase agreement transaction, the Company will generally sell a security, agreeing to repurchase either the same or substantially identical security on a specified later date, at a greater price than the original sales price. The difference between the sale price and purchase price is the cost of the proceeds, which is recorded as interest expense on the consolidated statement of income. The securities underlying the agreements are delivered to counterparties as security for the repurchase obligations. Since the securities are treated as collateral and the agreement does not qualify for a full transfer of effective control, the transactions does not meet the criteria to be classified as a sale, and is therefore considered a secured borrowing transaction for accounting purposes. Payments on such borrowings are interest only until the scheduled repurchase date. In a repurchase agreement the Company is subject to the risk that the purchaser may default at maturity and not return the securities underlying the agreements. In order to minimize this potential risk, the Company either deals with established firms when entering into these transactions or with customers whose agreements stipulate that the securities underlying the agreement are not delivered to the customer and instead are held in segregated safekeeping accounts by the Company's safekeeping agents. The table below sets forth information regarding the Company’s repurchase agreements accounted for as secured borrowings and types of collateral at the date indicated: September 30, 2015 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30 - 90 Days Greater than 90 Days Total Customer Repurchase Agreements: Obligations of states and political subdivisions $ 372 $ — $ — $ — $ 372 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 102,016 — — — 102,016 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 71,415 — — — 71,415 Total Customer Repurchase Agreements 173,803 — — — 173,803 Wholesale Repurchase Agreements: Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises — — — 27,959 27,959 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises — — — 2,104 2,104 Total Wholesale Repurchase Agreements — — — 30,063 30,063 Total Repurchase Agreements (1) $ 173,803 $ — $ — $ 30,063 $ 203,866 (1) Total repurchase agreements are presented within other borrowed funds on the consolidated statements of condition. Certain counterparties monitor collateral, and may request additional collateral to be posted from time to time. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION PLANS | STOCK-BASED COMPENSATION PLANS For the nine months ended September 30, 2015, the Company granted share-based awards, subject to certain terms and conditions, to certain officers, executive officers, and directors of the Company, Bank and Acadia Trust. All share-based awards granted were issued under the 2012 Plan. The following outlines the details, and terms and conditions of the material awards granted during the nine months ended September 30, 2015: • 84 unrestricted stock awards were issued to a newly appointed director of the Company under the Independent Directors' Equity Compensation Program. The unrestricted stock awards fully vested on the January 1, 2015 grant date. The fair value of the share awards issued was determined using the closing market price of the Company's stock on December 31, 2014 of $39.84 per share. • A total of 6,281 restricted stock awards and restricted stock units were granted at a fair value of $37.31 per share, based on the closing market price of the Company’s common stock on the March 6, 2015 grant date. The restricted stock awards vest pro-rata over a three -year period, while the restricted stock units vest pro-rata over a three -year period subject to the achievement of certain performance measures. The holders of the restricted stock awards participate fully in the rewards of stock ownership of the Company, including voting and dividend rights. • 9,379 shares of the Company's common stock were purchased under the MSPP at a one-third discount, based on the closing market price of the Company's common stock on the March 6, 2015 grant date of $37.31 , in lieu of the officers and executive officers annual incentive bonus. The shares fully vest after two years of service from the grant date. • 2,406 deferred stock awards were issued to certain executive officers under the DCRP. The stock awards have been determined to have a fair value of $38.85 per unit, based on the closing market price of the Company's common stock on the March 13, 2015 grant date. • 3,030 unrestricted stock awards were issued to the directors of the Company and Bank under the Independent Directors' Equity Compensation Program. The unrestricted stock awards fully vested immediately on the May 1, 2015 grant date. The fair value of the share awards issued was determined using the closing market price of the Company's stock on May 1, 2015 of $38.36 per share. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT AND DISCLOSURE Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined using quoted market prices. However, in many instances, quoted market prices are not available. In such instances, fair values are determined using various valuation techniques. Various assumptions and observable inputs must be relied upon in applying these techniques. GAAP establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. GAAP permits an entity to choose to measure eligible financial instruments and other items at fair value. The Company has elected the fair value option for its loans held for sale. Electing the fair value option for loans held for sale enables the Company’s financial position to more clearly align with the economic value of the actively traded asset. The fair value hierarchy for valuation of an asset or liability is as follows: Level 1: Valuation is based upon unadjusted quoted prices in active markets for identical assets and liabilities that the entity has the ability to access as of the measurement date. Level 2: Valuation is determined from quoted prices for similar assets or liabilities in active markets, from quoted prices for identical or similar instruments in markets that are not active or by model-based techniques in which all significant inputs are observable in the market. Level 3: Valuation is derived from model-based and other techniques in which at least one significant input is unobservable and which may be based on the Company’s own estimates about the assumptions that market participants would use to value the asset or liability. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon model-based techniques incorporating various assumptions including interest rates, prepayment speeds and credit losses. Assets and liabilities valued using model-based techniques are classified as either Level 2 or Level 3, depending on the lowest level classification of an input that is considered significant to the overall valuation. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Financial Instruments Recorded at Fair Value on a Recurring Basis Loans Held For Sale: The fair value of loans held for sale is determined using quoted secondary market prices or executed sales agreements and is classified as Level 2. AFS Securities : The fair value of debt AFS securities is reported utilizing prices provided by an independent pricing service based on recent trading activity and other observable information including, but not limited to, dealer quotes, market spreads, cash flows, market interest rate curves, market consensus prepayment speeds, credit information, and the bond’s terms and conditions. The fair value of debt securities are classified as Level 2. Derivatives : The fair value of interest rate swaps is determined using inputs that are observable in the market place obtained from third parties including yield curves, publicly available volatilities, and floating indexes and, accordingly, are classified as Level 2 inputs. The credit value adjustments associated with derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. As of September 30, 2015 and December 31, 2014 , the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives due to collateral postings. The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Readily Available Market Prices (Level 1) Observable Market Data (Level 2) Company Determined Fair Value (Level 3) September 30, 2015 Financial assets: Loans held for sale $ 890 $ — $ 890 $ — AFS securities: Obligations of U.S. government-sponsored enterprises 5,094 — 5,094 — Obligations of states and political subdivisions 19,872 — 19,872 — Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 381,049 — 381,049 — Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 318,222 — 318,222 — Customer interest rate swap agreements 3,188 — 3,188 — Financial liabilities: Interest rate swap agreements 10,165 — 10,165 — Forward-starting interest rate swap agreements 887 — 887 — Customer interest rate swap agreements 3,188 — 3,188 — December 31, 2014 Financial assets: AFS securities: Obligations of U.S. government-sponsored enterprises $ 5,027 $ — $ 5,027 $ — Obligations of states and political subdivisions 26,777 — 26,777 — Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 381,308 — 381,308 — Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 343,897 — 343,897 — Private issue collateralized mortgage obligations 6,054 — 6,054 — Customer interest rate swap agreements 1,140 — 1,140 — Financial liabilities: Interest rate swap agreements 9,143 — 9,143 — Customer interest rate swap agreements 1,140 — 1,140 — The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during the nine months ended September 30, 2015 . The Company’s policy for determining transfers between levels occurs at the end of the reporting period when circumstances in the underlying valuation criteria change and result in transfer between levels. Financial Instruments Recorded at Fair Value on a Nonrecurring Basis The Company may be required, from time to time, to measure certain financial assets and financial liabilities at fair value on a nonrecurring basis in accordance with GAAP. These include assets that are measured at the lower of cost or market value that were recognized at fair value below cost at the end of the period. Collateral-Dependent Impaired Loans : Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. The Company's policy is to individually evaluate for impairment loans with a principal balance greater than $250,000 or more and are classified as substandard or doubtful and are on non-accrual status. Once the population of loans is identified for individual impairment assessment, the Company measures these loans for impairment by comparing NRV, which is the fair value of the collateral, less estimated costs to sell, to the carrying value of the loan. If the NRV of the loan is less than the carrying value of the loan, then a loss is recognized as part of the ALL to adjust the loan's carrying value to NRV. Accordingly, certain collateral-dependent impaired loans are subject to measurement at fair value on a non-recurring basis. Management has estimated the fair values of these assets using Level 2 inputs, such as the fair value of collateral based on independent third-party market approach appraisals for collateral-dependent loans, and Level 3 inputs where circumstances warrant an adjustment to the appraised value based on the age of the appraisal and/or comparable sales, condition of the collateral, and market conditions. MSRs : The Company accounts for mortgage servicing assets at cost, subject to impairment testing. When the carrying value of a tranche exceeds fair value, a valuation allowance is established to reduce the carrying cost to fair value. Fair value is based on a valuation model that calculates the present value of estimated net servicing income. The Company obtains a third-party valuation based upon loan level data including note rate, type and term of the underlying loans. The model utilizes a variety of observable inputs for its assumptions, the most significant of which are loan prepayment assumptions and the discount rate used to discount future cash flows. Other assumptions include delinquency rates, servicing cost inflation and annual unit loan cost. MSRs are classified within Level 2 of the fair value hierarchy. Non-Financial Assets and Non-Financial Liabilities Recorded at Fair Value on a Non-Recurring Basis The Company has no non-financial assets or non-financial liabilities measured at fair value on a recurring basis. Non-financial assets measured at fair value on a non-recurring basis consist of OREO and goodwill and other intangible assets. OREO : OREO properties acquired through foreclosure or deed in lieu of foreclosure are recorded at NRV, which is the fair value of the real estate, less estimated costs to sell. Any write-down of the recorded investment in the related loan is charged to the ALL upon transfer to OREO. Upon acquisition of a property, a current appraisal is used or an internal valuation is prepared to substantiate fair value of the property. After foreclosure, management periodically, but at least annually, obtains updated valuations of the OREO properties and, if additional impairments are deemed necessary, the subsequent write-downs for declines in value are recorded through a valuation allowance and a provision for losses charged to other non-interest expense within the consolidated statements of income. As management considers appropriate, adjustments are made to the appraisal obtained for the OREO property to account for recent sales activity of comparable properties, changes in the condition of the property, and changes in market conditions. These adjustments are not observable in an active market and are classified as Level 3. Goodwill and Other Intangible Assets : Goodwill represents the excess cost of an acquisition over the fair value of the net assets acquired. The fair value of goodwill is estimated by utilizing several standard valuation techniques, including discounted cash flow analyses, bank merger multiples, and/or an estimation of the impact of business conditions and investor activities on the long-term value of the goodwill. Should an impairment of either reporting unit's goodwill occur, the associated goodwill is written-down to fair value and the impairment charge is recorded within non-interest expense in the consolidated statements of income. The Company conducts an annual impairment test of goodwill in the fourth quarter each year, or more frequently as necessary. There have been no indications or triggering events during the first nine months of 2015 for which management believes that it is more likely than not that goodwill is impaired. The Company's core deposit intangible assets represent the estimated value of acquired customer relationships and are amortized on a straight-line basis over the estimated life of those relationships. Core deposit intangibles are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If necessary, management will test the core deposit intangibles for impairment by comparing its carrying value to the expected undiscounted cash flows of the assets. If the undiscounted cash flows of the intangible assets exceed its carrying value then the intangible assets are deemed to be fully recoverable and not impaired. However, if the undiscounted cash flows of the intangible assets are less than its carrying value than an impairment charge is recorded to mark the carrying value of the intangible assets to fair value. There were no events or changes in circumstances during the first nine months of 2015 that indicated the carrying amount may not be recoverable. The table below highlights financial and non-financial assets measured and recorded at fair value on a non-recurring basis as of September 30, 2015 and December 31, 2014 . Not included in the table below because they were not recorded at fair value at September 30, 2015 and December 31, 2014 are: (i) impaired loans of $13.2 million and $17.6 million, respectively; (ii) MSRs reported of $165,000 and $319,000 , respectively; and (iii) OREO properties of $0 and $305,000 , respectively. Fair Value Readily Available Market Prices (Level 1) Observable Market Data (Level 2) Company Determined Fair Value (Level 3) September 30, 2015 Financial assets: Collateral-dependent impaired loans $ 1,986 $ — $ — $ 1,986 MSRs (1) 392 — 392 — Non-financial assets: OREO 204 — — 204 December 31, 2014 Financial assets: Collateral-dependent impaired loans $ 3,581 $ — $ — $ 3,581 MSRs (1) 173 — 173 — Non-financial assets: OREO 1,282 — — 1,282 (1) Represents MSRs deemed to be impaired and a valuation allowance established to carry at fair value. The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at September 30, 2015 and December 31, 2014: Fair Value Valuation Methodology Unobservable input Discount Range (Weighted-Average) September 30, 2015 Collateral-dependent impaired loans: Partially charged-off $ 1,186 Market approach appraisal of collateral Management adjustment of appraisal 0% (0%) Estimated selling costs 0 - 10% (6%) Specifically reserved 800 Market approach appraisal of collateral Management adjustment of appraisal 0 - 50% (10%) Estimated selling costs 0 - 10% (10%) OREO 204 Market approach appraisal of collateral Management adjustment of appraisal 0% (0%) Estimated selling cost 0 - 10% (1%) December 31, 2014 Collateral-dependent impaired loans: Partially charged-off $ 1,569 Market approach appraisal of collateral Management adjustment 0 - 17% (0%) Estimated selling costs 10% (10%) Specifically reserved 2,012 Market approach appraisal of collateral Management adjustment 0 - 50% (22%) Estimated selling costs 10% (10%) OREO 1,282 Market approach appraisal of collateral Management adjustment 0 - 68% (21%) Estimated selling costs 6 - 10% (9%) GAAP requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. The following methods and assumptions were used by the Company in estimating the fair values of its other financial instruments. Cash and Due from Banks : The carrying amounts reported in the consolidated statements of condition approximate fair value. HTM securities : The fair value is estimated utilizing prices provided by an independent pricing service based on recent trading activity and other observable information including, but not limited to, dealer quotes, market spreads, cash flows, market interest rate curves, market consensus prepayment speeds, credit information, and the bond’s terms and conditions. The fair value is classified as Level 2. Loans : For variable rate loans that reprice frequently and have no significant change in credit risk, fair values are based on carrying values. The fair value of other loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Interest Receivable and Payable : The carrying amounts reported in the consolidated statements of condition approximate fair value. Deposits : The fair value of deposits with no stated maturity is equal to the carrying amount. The fair value of certificates of deposit is estimated using a discounted cash flow calculation that applies interest rates and remaining maturities for currently offered certificates of deposit. Borrowings : The carrying amounts of short-term borrowings from the FHLB, securities sold under repurchase agreements, notes payable and other short-term borrowings approximate fair value. The fair values of long-term borrowings and commercial repurchase agreements are based on the discounted cash flows using current rates for advances of similar remaining maturities. Junior Subordinated Debentures : The carrying amounts reported in the consolidated statements of condition approximate fair value. The following table presents the carrying amounts and estimated fair value for financial instrument assets and liabilities measured at September 30, 2015 : Carrying Amount Fair Value Readily Available Market Prices (Level 1) Observable Market Prices (Level 2) Company Determined Market Prices (Level 3) Financial assets: Cash and due from banks $ 66,644 $ 66,644 $ 66,644 $ — $ — AFS securities 724,237 724,237 — 724,237 — HTM securities 75,368 76,578 — 76,578 — Loans held for sale 890 890 — 890 — Residential real estate loans 578,033 590,234 — — 590,234 Commercial real estate loans 685,046 677,866 — — 677,866 Commercial loans 250,501 248,747 — — 248,747 Home equity loans 279,186 281,045 — — 281,045 Consumer loans 16,245 16,643 — — 16,643 MSRs (1) 557 1,399 — 1,399 — Interest receivable 6,577 6,577 — 6,577 — Customer interest rate swap agreements 3,188 3,188 — 3,188 — Financial liabilities: Deposits $ 2,008,177 $ 2,010,117 $ 1,408,272 $ 601,845 $ — FHLB advances 55,000 56,515 — 56,515 — Commercial repurchase agreements 30,063 31,012 — 31,012 — Other borrowed funds 434,740 434,836 434,836 — Junior subordinated debentures 44,101 44,101 — 44,101 — Interest payable 505 505 505 — — Interest rate swap agreements 10,165 10,165 — 10,165 — Forward-starting interest rate swap agreements 887 887 — 887 — Customer interest rate swap agreements 3,188 3,188 — 3,188 — (1) Reported fair value represents all MSRs currently being serviced by the Company, regardless of carrying amount. The following table presents the carrying amounts and estimated fair value for financial instrument assets and liabilities measured at December 31, 2014: Carrying Amount Fair Value Readily Available Market Prices (Level 1) Observable Market Prices (Level 2) Company Determined Market Prices (Level 3) Financial assets: Cash and due from banks $ 60,813 $ 60,813 $ 60,813 $ — $ — AFS securities 763,063 763,063 — 763,063 — HTM securities 20,179 20,425 — 20,425 — Residential real estate loans 579,946 596,172 — — 596,172 Commercial real estate loans 635,609 631,434 — — 631,434 Commercial loans 249,823 244,713 — — 244,713 Home equity loans 269,176 270,904 — — 270,904 Consumer loans 16,940 17,007 — — 17,007 MSRs (1) 493 1,447 — 1,447 — Interest receivable 6,017 6,017 — 6,017 — Customer interest rate swap agreement 1,140 1,140 — 1,140 — Financial liabilities: Deposits $ 1,932,097 $ 1,933,805 $ 1,361,604 $ 572,201 $ — FHLB advances 56,039 57,986 — 57,986 — Commercial repurchase agreements 30,097 31,395 — 31,395 — Other borrowed funds 446,842 446,909 446,909 — — Junior subordinated debentures 44,024 44,024 — 44,024 — Interest payable 537 537 537 — — Interest rate swap agreements 9,143 9,143 — 9,143 — Customer interest rate swap agreement 1,140 1,140 — 1,140 — (1) Reported fair value represents all MSRs currently being serviced by the Company, regardless of carrying amount. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal Contingencies In the normal course of business, the Company and its subsidiaries are subject to pending and threatened legal actions. Although the Company is not able to predict the outcome of such actions, after reviewing pending and threatened actions with counsel, management believes that based on the information currently available the outcome of such actions, individually or in the aggregate, will not have a material adverse effect on the Company’s consolidated financial position as a whole. Reserves are established for legal claims only when losses associated with the claims are judged to be probable and the loss can be reasonably estimated. In many lawsuits and arbitrations, it is not possible to determine whether a liability has been incurred or to estimate the ultimate or minimum amount of that liability until the case is close to resolution, in which case a reserve will not be recognized until that time. As of September 30, 2015 , the Company did no t have any material loss contingencies for which accruals were provided for and/or disclosure was deemed necessary. Financial Instruments In the normal course of business, the Company is a party to both on and off-balance sheet financial instruments involving, to varying degrees, elements of credit risk and interest rate risk in addition to the amounts recognized in the consolidated statements of condition. The following is a summary of the contractual and notional amounts of the Company’s financial instruments: September 30, December 31, Lending-Related Instruments: Loan origination commitments and unadvanced lines of credit: Home equity $ 336,459 $ 303,815 Commercial and commercial real estate 45,729 47,066 Residential 17,608 10,975 Letters of credit 2,436 3,103 Other commitments 651 1,305 Derivative Financial Instruments: Interest rate swaps 43,000 43,000 Forward-starting interest rate swaps 50,000 — Customer loan swaps 171,302 58,234 Lending-Related Instruments The contractual amounts of the Company’s lending-related financial instruments do not necessarily represent future cash requirements since certain of these instruments may expire without being funded and others may not be fully drawn upon. These instruments are subject to the Company’s credit approval process, including an evaluation of the customer’s creditworthiness and related collateral requirements. Commitments generally have fixed expiration dates or other termination clauses. Derivative Financial Instruments The Company uses derivative financial instruments for risk management purposes (primarily interest rate risk) and not for trading or speculative purposes. The Company controls the credit risk of these instruments through collateral, credit approvals and monitoring procedures. Interest Rate Swaps: The Company’s interest rate swap arrangements contain provisions that require the Company to post cash collateral with the counterparty for contracts that are in a net liability position based on their fair values and the Company’s credit rating. The Company had a notional amount of $43.0 million in variable-for-fixed interest rate swap agreements on its junior subordinated debentures and $10.3 million in cash held as collateral. The terms of the interest rate swap agreements are as follows: September 30, 2015 December 31, 2014 Notional Trade Maturity Date Variable Index Fixed Rate Fair Value (1) Fair Value (1) $ 10,000 3/18/2009 6/30/2021 3-Month USD LIBOR 5.09% $ (1,240 ) $ (1,092 ) 10,000 7/8/2009 6/30/2029 3-Month USD LIBOR 5.84% (2,763 ) (2,511 ) 10,000 5/6/2010 6/30/2030 3-Month USD LIBOR 5.71% (2,697 ) (2,434 ) 5,000 3/14/2011 3/30/2031 3-Month USD LIBOR 4.35% (1,414 ) (1,279 ) 8,000 5/4/2011 7/7/2031 3-Month USD LIBOR 4.14% (2,051 ) (1,827 ) $ 43,000 $ (10,165 ) $ (9,143 ) (1) Presented within accrued interest and other liabilities on the consolidated statements of condition. As each derivative instrument qualifies as a highly effective cash flow hedge, the decrease in the fair value of the interest rate swaps for the nine months ended September 30, 2015 of $665,000 , net of tax, was recorded in OCI. Net payments have been classified as cash flows from operating activities in the consolidated statements of cash flows. The Company would reclassify unrealized gains or losses accounted for within AOCI into earnings if the interest rate swaps were to become ineffective or the arrangements were to terminate. In the next 12 months, the Company does not believe it will reclassify any related unrealized gains or losses accounted for within AOCI into earnings. Forward-Starting Interest Rate Swaps: In the first quarter of 2015, the Bank entered into two interest rate swap arrangements with a counterparty for a total notional amount of $50.0 million . Each derivative arrangement will commence on February 25, 2016, with one contract set to expire on February 25, 2018 and the other on February 25, 2019. The Bank entered into these forward-starting interest rate swaps to mitigate its cost of borrowings exposure in a rising interest rate environment. The Bank has designated each arrangement as a hedge in accordance with GAAP, and, therefore, the change in unrealized gains or losses on the derivative instruments is recorded within AOCI, net of tax. Also, quarterly, in conjunction with financial reporting, the Company assesses each derivative instrument for ineffectiveness. To the extent any significant ineffectiveness is identified this amount would be recorded within the consolidated statements of income. For the three and nine months ended September 30, 2015 the Company did no t record any ineffectiveness within the consolidated statements of income. The Bank's arrangement with the counterparty requires it to post cash collateral for contracts in a net liability position based on their fair values and the Bank's credit rating. At September 30, 2015 , the Bank posted cash collateral with the counterparty of $824,000 . The terms of the interest rate swap agreements are as follows: September 30, 2015 Notional Trade Maturity Date Variable Index Fixed Rate Fair Value (1) $ 25,000 2/25/2015 2/25/2018 30-Day FHLBB 1.54% $ (356 ) 25,000 2/25/2015 2/25/2019 30-Day FHLBB 1.74% (531 ) $ 50,000 $ (887 ) (1) Presented within accrued interest and other liabilities on the consolidated statements of condition. As each derivative instrument qualifies as a highly effective cash flow hedge, the decrease in the fair value of the interest rate swaps for the nine months ended September 30, 2015 of $576,000 , net of tax, was recorded in OCI. Net payments have been classified as cash flows from operating activities in the consolidated statements of cash flows. In the next 12 months, the Company does not believe it will reclassify any related unrealized gains or losses accounted for within AOCI into earnings. Customer Loan Swaps: The Company will enter into interest rate swaps with its commercial customers, from time to time, to provide them with a means to lock into a long-term fixed rate, while simultaneously the Company enters into an arrangement with a counterparty to swap the fixed rate to a variable rate to allow it to effectively manage its interest rate exposure. At September 30, 2015 and December 31, 2014, the Company had interest rate swap agreements with a total notional amount of $85.7 million and $29.1 million , respectively, with its commercial customers, and interest rate swap agreements of equal notional amounts with a dealer bank. The Company's customer loan level derivative program is not designated as a hedge for accounting purposes. As the interest rate swap agreements have substantially equivalent and offsetting terms, they do not materially change the Company’s interest rate risk or present any material exposure to the Company's consolidated statements of income. The Company records its customer loan swaps at fair value and presents such on a gross basis within other assets and accrued interest and other liabilities on the consolidated statements of condition. The fair value of customer loan swaps at September 30, 2015 and December 31, 2014 were $3.2 million and $1.1 million , respectively. The Company seeks to mitigate its customer counterparty credit risk exposure through its loan policy and underwriting process, which includes credit approval limits, monitoring procedures, and obtaining collateral, where appropriate. The Company seeks to mitigate its institutional counterparty credit risk exposure by limiting the institutions for which it will enter into interest swap arrangements through an approved listing by the Company's board of directors. The Company's arrangement with an institutional counterparty requires it to post cash collateral for contracts in a net liability position based on their fair values and the Bank's credit rating or receive cash collateral for contracts in a net asset position. At September 30, 2015 , the Company posted cash collateral with the counterparty of $3.0 million . Interest Rate Locks: As part of originating residential mortgages, the Company may enter into rate lock agreements with customers, which are considered interest rate lock commitments. At September 30, 2015 and December 31, 2014 , based upon the pipeline of mortgage loans with rate lock commitments, the fair value of these commitments was immaterial to the Company's consolidated financial statements. |
MERGER AND ACQUISITION ACTIVITY
MERGER AND ACQUISITION ACTIVITY | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
MERGER AND ACQUISITION COSTS | MERGER AND ACQUISITION ACTIVITY On October 16, 2015, the Company completed its previously announced acquisition of SBM pursuant to the terms and conditions of the Merger Agreement. Additionally, The Bank of Maine, a wholly owned subsidiary of SBM, merged with and into Camden National Bank, with Camden National Bank continuing as the surviving bank. Pursuant to the Merger Agreement, each share of SBM common stock outstanding at the effective time of the Merger was converted into the right to receive, at the election of the stockholder and subject to the allocation and proration procedures described in the Merger Agreement, either: (1) $206.00 in cash, without interest or (2) 5.421 shares of common stock of the Company; provided that 80% of the SBM shares outstanding immediately prior to the effective time of the Merger were converted into the right to receive common stock of the Company and the remaining SBM shares were converted into the right to receive cash. The total consideration paid by the Company was approximately $136.7 million , consisting of (i) approximately $26.1 million in cash; (ii) 2,749,762 shares of Camden common stock valued at approximately $108.6 million based on the October 16, 2015 closing price of $39.48 per share; and (iii) the fair value of 92,688 non-qualified stock options issued under the 2012 Plan of $2.0 million . As of October 16, 2015, SBM's total assets were approximately $815.0 million , total net loans were approximately $640.0 million , and total deposits and borrowings were approximately $710.0 million . These balances are unaudited and do not include any adjustments for purchase accounting. As a result of the proximity of the closing of the merger to the date these consolidated financial statements were available to be issued, the Company continues to evaluate the estimated fair values of the assets acquired and the liabilities assumed. Accordingly, the amount of any goodwill and other intangible assets to be recognized in connection with this transaction is also yet to be determined. Upon completion of the Merger on October 16, 2015, the Company had 10,203,807 shares of common stock outstanding. In conjunction with the Merger, the Company incurred certain non-recurring costs, including legal fees, investment banking fees, and other integration-related costs for the three and nine months ended September 30, 2015 of $766,000 and $1.6 million, respectively. These non-recurring costs are presented on the consolidated statements of income within non-interest expense as merger and acquisition costs. In addition, the Company incurred certain equity issuance costs totaling $537,000 related to the registration of additional shares of the Company's common stock. These costs have been accounted for as a reduction to shareholders' equity. In accordance with the Internal Revenue Code, certain non-recurring costs are not deductible for income tax purposes. The impact to the Company's effective tax rate for the nine months ended September 30, 2015 was an increase of 2.1% . Non-recurring costs incurred for the three months ended September 30, 2015 had no impact on the Company's three months ended effective tax rate. |
SUBSEQUENT EVENTS (Notes)
SUBSEQUENT EVENTS (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 13 – SUBSEQUENT EVENTS On October 8, 2015, the Company issued $15.0 million in aggregate principal amount of 5.50% fixed rate subordinated notes due 2025 to certain institutional accredited investors. The notes were issued at par and are redeemable, in whole or in part, on or after October 8, 2020 and at any time upon the occurrences of certain events. The Company intends to use the proceeds for general corporate purposes, including for the provision of additional liquidity and working capital. The notes qualify as Tier II capital and will be included as such within the Company's total risk-based capital ratio. Costs incurred associated with the debt issuance will be capitalized and amortized over the life of notes. Also, refer to Note 12 for discussion of the Merger with SBM that was completed on October 16, 2015. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In January 2015, the FASB issued ASU No. 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-30): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items . The ASU was issued as part of the FASB's simplification initiative to reduce complexity in accounting standards by eliminating the concept of extraordinary items. The ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. The ASU does not have a material effect on the Company's consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. The ASU was issued to simplify the presentation of debt issuance costs as part of the FASB's simplification initiative. The ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct reduction of the carrying amount of that debt liability, consistent with debt discounts. The ASU is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The new guidance will be applied on a retrospective basis, which will require disclosure of this as a change in accounting principle. The Company does not expect the ASU to have a material effect on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement. The ASU was issued because existing GAAP did not include explicit guidance for accounting for fees paid in a cloud computing arrangement. The ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. The Company does not expect the ASU to have a material effect on its consolidated financial statements. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. The ASU was issued to defer the effective date of Update 2014-09, Revenue from Contracts with Customers (Topic 606), for all entities by one year. ASU 2014-09 was issued to clarify the principles for recognizing revenue and to develop a common revenue standard. ASU 2014-09 is now effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The Company continues to evaluate the potential impact of ASU 2014-09, as updated by ASU 2015-14, but currently does not expect the ASU to have a material effect on its consolidated financial statements. In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805) : Simplifying the Accounting for Measurement-Period Adjustments. The ASU was issued to simplify measurement period accounting, by requiring recognition of measurement period adjustments identified in the reporting period in which they are determined instead of applying them retrospectively. The ASU is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years and early application is permitted. The Company is evaluating the potential impact of the ASU on its consolidated financial statements. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Analysis of Basic and Diluted Earnings Per Share | The following is an analysis of basic and diluted EPS, reflecting the application of the two-class method, as described below: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Net income $ 6,456 $ 6,451 $ 19,260 $ 18,482 Dividends and undistributed earnings allocated to participating securities (1) (21 ) (20 ) (61 ) (57 ) Net income available to common shareholders $ 6,435 $ 6,431 $ 19,199 $ 18,425 Weighted-average common shares outstanding for basic EPS 7,453,222 7,421,592 7,443,543 7,459,972 Dilutive effect of stock-based awards (2) 23,817 18,356 20,941 19,355 Weighted-average common and potential common shares for diluted EPS 7,477,039 7,439,948 7,464,484 7,479,327 Earnings per common share: Basic EPS $ 0.86 $ 0.87 $ 2.58 $ 2.47 Diluted EPS $ 0.86 $ 0.86 $ 2.57 $ 2.46 Awards excluded from the calculation of diluted EPS (3) : Stock options 13,750 30,750 16,250 14,750 (1) Represents dividends paid and undistributed earnings allocated to nonvested stock-based awards that contain non-forfeitable rights to dividends. (2) Represents the effect of the assumed exercise of stock options, vesting of restricted shares, vesting of restricted stock units, and vesting of LTIP awards that have met the performance criteria, as applicable, utilizing the treasury stock method. (3) Represents stock-based awards not included in the computation of potential common shares for purposes of calculating diluted EPS as the exercise prices were greater than the average market price of the Company's common stock. |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Costs and Estimated Fair Values of Available-For-Sale Securities | The following tables summarize the amortized cost and estimated fair values of AFS and HTM securities, as of the dates indicated: Amortized Cost Unrealized Gains Unrealized Losses Fair Value September 30, 2015 AFS Securities: Obligations of U.S. government-sponsored enterprises $ 4,969 $ 125 $ — $ 5,094 Obligations of states and political subdivisions 19,471 401 — 19,872 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 376,950 5,490 (1,391 ) 381,049 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 318,417 2,512 (2,707 ) 318,222 Total AFS securities $ 719,807 $ 8,528 $ (4,098 ) $ 724,237 HTM Securities: Obligations of states and political subdivisions $ 75,368 $ 1,311 $ (101 ) $ 76,578 Total HTM securities $ 75,368 $ 1,311 $ (101 ) $ 76,578 December 31, 2014 AFS Securities: Obligations of U.S. government-sponsored enterprises $ 4,962 $ 65 $ — $ 5,027 Obligations of states and political subdivisions 26,080 697 — 26,777 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 377,657 5,656 (2,005 ) 381,308 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 348,855 953 (5,911 ) 343,897 Private issue collateralized mortgage obligations 5,999 63 (8 ) 6,054 Total AFS securities $ 763,553 $ 7,434 $ (7,924 ) $ 763,063 HTM Securities: Obligations of states and political subdivisions $ 20,179 $ 265 $ (19 ) $ 20,425 Total HTM securities $ 20,179 $ 265 $ (19 ) $ 20,425 |
Unrealized Gross Losses and Estimated Fair Values of Investment Securities by Length of Time that Individual Securities in Each Category in Continuous Loss Position | The following table presents the estimated fair values and gross unrealized losses of investment securities that were in a continuous loss position at September 30, 2015 and December 31, 2014 , by length of time that individual securities in each category have been in a continuous loss position: Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses September 30, 2015 AFS Securities: Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises $ 53,164 $ (395 ) $ 57,721 $ (996 ) $ 110,885 $ (1,391 ) Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 12,183 (188 ) 145,289 (2,519 ) 157,472 (2,707 ) Total AFS securities $ 65,347 $ (583 ) $ 203,010 $ (3,515 ) $ 268,357 $ (4,098 ) HTM Securities: Obligations of states and political subdivisions $ 12,388 $ (101 ) $ — $ — $ 12,388 $ (101 ) Total HTM securities $ 12,388 $ (101 ) $ — $ — $ 12,388 $ (101 ) December 31, 2014 AFS Securities: Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises $ 42,856 $ (171 ) $ 125,439 $ (1,834 ) $ 168,295 $ (2,005 ) Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 75,723 (432 ) 182,512 (5,479 ) 258,235 (5,911 ) Private issue collateralized mortgage obligations 1,785 (8 ) — — 1,785 (8 ) Total AFS securities $ 120,364 $ (611 ) $ 307,951 $ (7,313 ) $ 428,315 $ (7,924 ) HTM Securities: Obligations of states and political subdivisions $ 5,756 $ (19 ) $ — $ — $ 5,756 $ (19 ) Total HTM securities $ 5,756 $ (19 ) $ — $ — $ 5,756 $ (19 ) |
Company's Sales of Securities | The following table details the Company’s sales of AFS securities for the period indicated below: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Proceeds from sales of securities $ 12,426 $ — $ 12,426 $ 25,695 Gross realized gains 221 — 221 451 Gross realized losses (217 ) — (217 ) — |
Amortized Cost and Estimated Fair Values of Debt Securities by Contractual Maturity | The amortized cost and estimated fair values of debt securities by contractual maturity at September 30, 2015 , are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value AFS Securities Due in one year or less $ 3,594 $ 3,634 Due after one year through five years 87,212 88,411 Due after five years through ten years 110,852 113,415 Due after ten years 518,149 518,777 $ 719,807 $ 724,237 HTM Securities Due in one year or less $ — $ — Due after one year through five years 2,234 2,290 Due after five years through ten years 1,134 1,143 Due after ten years 72,000 73,145 $ 75,368 $ 76,578 |
LOANS AND ALLOWANCE FOR LOAN 26
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Composition of Loan Portfolio, Excluding Residential Loans Held for Sale | The composition of the Company’s loan portfolio, excluding residential loans held for sale, at September 30, 2015 and December 31, 2014 was as follows: September 30, December 31, Residential real estate $ 583,424 $ 585,996 Commercial real estate 690,935 640,661 Commercial 258,105 257,515 Home equity 281,492 271,709 Consumer 16,535 17,257 Net deferred fees (348 ) (528 ) Total $ 1,830,143 $ 1,772,610 |
Summary of Activity in Allowance for Loan Losses | The following table presents the activity in the ALL and select loan information by portfolio segment for the three and nine months ended September 30, 2015 and 2014, and for the year ended December 31, 2014: Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer Unallocated Total For The Three and Nine Months Ended September 30, 2015 ALL for the three months ended: Beginning balance $ 4,689 $ 4,698 $ 6,777 $ 2,144 $ 268 $ 2,618 $ 21,194 Loans charged off (176 ) (71 ) (144 ) (198 ) (23 ) — (612 ) Recoveries 15 4 115 132 3 — 269 Provision (credit) (1) 4 661 85 (6 ) 13 (476 ) 281 Ending balance $ 4,532 $ 5,292 $ 6,833 $ 2,072 $ 261 $ 2,142 $ 21,132 ALL for the nine months ended: Beginning balance $ 4,899 $ 4,482 $ 6,823 $ 2,247 $ 281 $ 2,384 $ 21,116 Loans charged off (468 ) (174 ) (387 ) (439 ) (42 ) — (1,510 ) Recoveries 35 68 297 137 17 — 554 Provision (credit) (1) 66 916 100 127 5 (242 ) 972 Ending balance $ 4,532 $ 5,292 $ 6,833 $ 2,072 $ 261 $ 2,142 $ 21,132 ALL balance attributable to loans: Individually evaluated for impairment $ 956 $ 352 $ 192 $ 276 $ 89 $ — $ 1,865 Collectively evaluated for impairment 3,576 4,940 6,641 1,796 172 2,142 19,267 Total ending ALL $ 4,532 $ 5,292 $ 6,833 $ 2,072 $ 261 $ 2,142 $ 21,132 Loans: Individually evaluated for impairment $ 7,499 $ 4,711 $ 1,720 $ 1,037 $ 206 $ — $ 15,173 Collectively evaluated for impairment 575,577 686,224 256,385 280,455 16,329 — 1,814,970 Total ending loans balance $ 583,076 $ 690,935 $ 258,105 $ 281,492 $ 16,535 $ — $ 1,830,143 Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer Unallocated Total For The Three and Nine Months Ended September 30, 2014 ALL for the three months ended: Beginning balance $ 5,141 $ 4,361 $ 6,484 $ 2,752 $ 318 $ 2,849 $ 21,905 Loans charged off (9 ) (100 ) (675 ) (166 ) (59 ) — (1,009 ) Recoveries 2 17 117 8 11 — 155 Provision (credit) (1) 122 82 35 (63 ) 23 335 534 Ending balance $ 5,256 $ 4,360 $ 5,961 $ 2,531 $ 293 $ 3,184 $ 21,585 ALL for the nine months ended: Beginning balance $ 5,603 $ 4,374 $ 6,220 $ 2,403 $ 319 $ 2,671 $ 21,590 Loans charged off (370 ) (276 ) (1,201 ) (272 ) (99 ) — (2,218 ) Recoveries 136 67 286 19 30 — 538 Provision (credit) (1) (113 ) 195 656 381 43 513 1,675 Ending balance $ 5,256 $ 4,360 $ 5,961 $ 2,531 $ 293 $ 3,184 $ 21,585 ALL balance attributable to loans: Individually evaluated for impairment $ 1,420 $ 222 $ 121 $ 573 $ 111 $ — $ 2,447 Collectively evaluated for impairment 3,836 4,138 5,840 1,958 182 3,184 19,138 Total ending ALL $ 5,256 $ 4,360 $ 5,961 $ 2,531 $ 293 $ 3,184 $ 21,585 Loans: Individually evaluated for impairment $ 10,964 $ 6,710 $ 3,380 $ 1,860 $ 309 $ — $ 23,223 Collectively evaluated for impairment 566,134 606,800 242,232 269,998 17,840 — 1,703,004 Total ending loans balance $ 577,098 $ 613,510 $ 245,612 $ 271,858 $ 18,149 $ — $ 1,726,227 For The Year Ended December 31, 2014 ALL: Beginning balance $ 5,603 $ 4,374 $ 6,220 $ 2,403 $ 319 $ 2,671 $ 21,590 Loans charged off (785 ) (361 ) (1,544 ) (611 ) (143 ) — (3,444 ) Recoveries 165 135 395 19 32 — 746 Provision (credit) (1) (84 ) 334 1,752 436 73 (287 ) 2,224 Ending balance $ 4,899 $ 4,482 $ 6,823 $ 2,247 $ 281 $ 2,384 $ 21,116 ALL balance attributable to loans: Individually evaluated for impairment $ 1,220 $ 251 $ 168 $ 496 $ 104 $ — $ 2,239 Collectively evaluated for impairment 3,679 4,231 6,655 1,751 177 2,384 18,877 Total ending ALL $ 4,899 $ 4,482 $ 6,823 $ 2,247 $ 281 $ 2,384 $ 21,116 Loans: Individually evaluated for impairment $ 9,656 $ 7,658 $ 1,853 $ 1,741 $ 271 $ — $ 21,179 Collectively evaluated for impairment 575,812 633,003 255,662 269,968 16,986 — 1,751,431 Total ending loans balance $ 585,468 $ 640,661 $ 257,515 $ 271,709 $ 17,257 $ — $ 1,772,610 (1) The provision (credit) for loan losses excludes any impact for the change in the reserve for unfunded commitments, which represents management's estimate of the amount required to reflect the probable inherent losses on outstanding letters of credit and unused lines of credit. The reserve for unfunded commitments is presented within accrued interest and other liabilities on the consolidated statements of condition. At September 30, 2015 and 2014, and December 31, 2014, the reserve for unfunded commitments was $24,000 , $21,000 and $17,000 , respectively. |
Schedule of Provision for Credit Losses [Table Text Block] | The following table reconciles the three and nine months ended September 30, 2015 and 2014, and year ended December 31, 2014 provision for loan losses to the provision for credit losses as presented on the consolidated statement of income: Three Months Ended September 30, Nine Months Ended Year Ended December 31, 2015 2014 2015 2014 2014 Provision for loan losses $ 281 $ 534 $ 972 $ 1,675 $ 2,224 Change in reserve for unfunded commitments (2 ) 5 7 — (4 ) Provision for credit losses $ 279 $ 539 $ 979 $ 1,675 $ 2,220 |
Credit Risk Exposure Indicators by Portfolio Segment | The following table summarizes credit risk exposure indicators by portfolio segment as of the following dates: Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer Total September 30, 2015 Pass (Grades 1-6) $ 573,229 $ 647,831 $ 247,817 $ — $ — $ 1,468,877 Performing — — — 280,455 16,329 296,784 Special Mention (Grade 7) 2,599 12,689 5,881 — — 21,169 Substandard (Grade 8) 7,248 30,415 4,407 — — 42,070 Non-performing — — — 1,037 206 1,243 Total $ 583,076 $ 690,935 $ 258,105 $ 281,492 $ 16,535 $ 1,830,143 December 31, 2014 Pass (Grades 1-6) $ 572,589 $ 606,387 $ 244,930 $ — $ — $ 1,423,906 Performing — — — 269,968 16,986 286,954 Special Mention (Grade 7) 3,579 4,690 6,023 — — 14,292 Substandard (Grade 8) 9,300 29,584 6,562 — — 45,446 Non-performing — — — 1,741 271 2,012 Total $ 585,468 $ 640,661 $ 257,515 $ 271,709 $ 17,257 $ 1,772,610 |
Loan Aging Analysis by Portfolio Segment (Including Loans Past Due Over Ninety Days and Non Accrual Loans) and Summary of Non Accrual Loans, Which Include Troubled Debt Restructured Loans, and Loans Past Due Over Ninety Days and Accruing | The following is a loan aging analysis by portfolio segment (including loans past due over 90 days and non-accrual loans) and a summary of non-accrual loans, which include TDRs, and loans past due over 90 days and accruing as of the following dates: 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Outstanding Loans > 90 Days Past Due and Accruing Non-Accrual Loans September 30, 2015 Residential real estate $ 977 $ 303 $ 3,199 $ 4,479 $ 578,597 $ 583,076 $ — $ 4,149 Commercial real estate 1,997 64 1,964 4,025 686,910 690,935 — 3,384 Commercial 669 51 1,107 1,827 256,278 258,105 — 1,383 Home equity 211 35 811 1,057 280,435 281,492 — 1,037 Consumer 55 25 183 263 16,272 16,535 — 206 Total $ 3,909 $ 478 $ 7,264 $ 11,651 $ 1,818,492 $ 1,830,143 $ — $ 10,159 December 31, 2014 Residential real estate $ 1,206 $ 426 $ 4,531 $ 6,163 $ 579,305 $ 585,468 $ — $ 6,056 Commercial real estate 1,696 — 3,791 5,487 635,174 640,661 — 7,043 Commercial 456 269 1,139 1,864 255,651 257,515 — 1,529 Home equity 889 88 1,129 2,106 269,603 271,709 — 1,741 Consumer 28 — 254 282 16,975 17,257 — 271 Total $ 4,275 $ 783 $ 10,844 $ 15,902 $ 1,756,708 $ 1,772,610 $ — $ 16,640 |
Troubled Debt Restructuring and Specific Reserve Related to TDRs [Table Text Block] | The following is a summary of TDRs, by portfolio segment, and the associated specific reserve included within the ALL as of: Number of Contracts Recorded Investment Specific Reserve September 30, 2015 December 31, 2014 September 30, December 31, 2014 September 30, December 31, 2014 Residential real estate 22 24 $ 3,452 $ 3,786 $ 568 $ 635 Commercial real estate 6 7 1,573 1,702 48 — Commercial 9 9 413 426 11 10 Home equity 1 1 23 29 — — Total 38 41 $ 5,461 $ 5,943 $ 627 $ 645 |
Summary of All Troubled Debt Restructuring Loans (Accruing and Non Accruing) by Portfolio Segment | The following represents loan modifications that occurred during the three and nine months ended September 30, 2015 and 2014 that qualify as TDRs, by portfolio segment, and the associated specific reserve included within the ALL: Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Specific Reserve September 30, September 30, September 30, September 30, 2015 2014 2015 2014 2015 2014 2015 2014 For the Three Months Ended: Residential real estate 1 — $ 74 $ — $ 78 $ — $ — $ — Commercial real estate — 1 — 235 — 235 — — Commercial — 3 — 77 — 77 — 9 Consumer and home equity — 1 — 40 — 30 — — Total 1 5 $ 74 $ 352 $ 78 $ 342 $ — $ 9 For the Nine Months Ended: Residential real estate 1 1 $ 74 $ 136 $ 78 $ 149 $ — $ 44 Commercial real estate — 1 — 235 — 235 — — Commercial — 3 — 77 — 77 — 9 Consumer and home equity — 1 — 40 — 30 — — Total 1 6 $ 74 $ 488 $ 78 $ 491 $ — $ 53 |
Summary of Impaired Loan Balances and Associated Allowance by Portfolio Segment | The following is a summary of impaired loan balances and associated allowance by portfolio segment as of and for the three and nine months ended September 30, 2015 and 2014: Three Months Ended Nine Months Ended Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (1) Average Interest September 30, 2015: With an allowance recorded: Residential real estate $ 5,880 $ 5,880 $ 956 $ 7,618 $ 55 $ 6,963 $ 82 Commercial real estate 1,442 1,475 352 2,161 — 1,930 — Commercial 1,016 1,016 192 1,320 5 1,188 6 Home equity 834 834 276 1,410 — 1,099 — Consumer 189 189 89 248 — 229 — Ending Balance 9,361 9,394 1,865 12,757 60 11,409 88 Without an allowance recorded: Residential real estate 1,619 2,118 — 1,774 4 1,607 6 Commercial real estate 3,269 3,430 — 3,102 18 2,735 45 Commercial 704 876 — 503 4 567 8 Home equity 203 454 — 303 — 390 — Consumer 17 37 — 17 — 17 — Ending Balance 5,812 6,915 — 5,699 26 5,316 59 Total impaired loans $ 15,173 $ 16,309 $ 1,865 $ 18,456 $ 86 $ 16,725 $ 147 September 30, 2014: With an allowance recorded: Residential real estate $ 9,441 $ 9,441 $ 1,420 $ 9,236 $ 38 $ 9,928 $ 102 Commercial real estate 2,987 2,987 222 3,142 1 5,588 2 Commercial 1,562 1,562 121 2,724 (2 ) 2,653 8 Home equity 1,510 1,510 573 1,486 — 1,571 — Consumer 292 292 111 333 — 392 — Ending Balance 15,792 15,792 2,447 16,921 37 20,132 112 Without an allowance recorded: Residential real estate 1,523 1,880 — 1,751 2 2,340 5 Commercial real estate 3,723 4,116 — 3,490 14 2,230 43 Commercial 1,818 2,318 — 870 6 609 8 Home equity 350 477 — 403 — 415 — Consumer 17 37 — 17 — 17 — Ending Balance 7,431 8,828 — 6,531 22 5,611 56 Total impaired loans $ 23,223 $ 24,620 $ 2,447 $ 23,452 $ 59 $ 25,743 $ 168 (1) Negative interest income represents the re-allocation of income between "with an allowance recorded" and "without an allowance recorded" (or vice versa) during the period. The following is a summary of impaired loan balances and associated allowance by portfolio segment as of and for the year ended December 31, 2014 : Year Ended Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With an allowance recorded: Residential real estate $ 7,713 $ 7,713 $ 1,220 $ 9,524 $ 125 Commercial real estate 3,419 3,419 251 4,911 — Commercial 1,390 1,390 168 2,466 8 Home equity 1,410 1,410 496 1,545 — Consumer 254 254 104 358 — Ending Balance 14,186 14,186 2,239 18,804 133 Without an allowance recorded: Residential real estate 1,943 2,604 — 2,257 13 Commercial real estate 4,239 4,502 — 2,869 59 Commercial 463 606 — 791 11 Home equity 331 581 — 399 — Consumer 17 37 — 21 — Ending Balance 6,993 8,330 — 6,337 83 Total impaired loans $ 21,179 $ 22,516 $ 2,239 $ 25,141 $ 216 |
GOODWILL AND OTHER INTANGIBLE27
GOODWILL AND OTHER INTANGIBLE ASSESTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | Goodwill as of September 30, 2015 and December 31, 2014 for each reporting unit is shown in the table below: Goodwill Banking Financial Services Total September 30, 2015 and December 31, 2014: Goodwill, gross $ 40,902 $ 7,474 $ 48,376 Accumulated impairment losses — (3,570 ) (3,570 ) Reported goodwill at September 30, 2015 and December 31, 2014 $ 40,902 $ 3,904 $ 44,806 |
Changes in Core Deposit Intangible and Trust Relationship Intangible | The changes in core deposit and trust relationship intangible assets for the nine months ended September 30, 2015 are shown in the table below: Core Deposit Intangible Trust Relationship Intangible Total Accumulated Amortization Net Total Accumulated Amortization Net Balance at December 31, 2014 $ 17,300 $ (14,161 ) $ 3,139 $ 753 $ (527 ) $ 226 2015 amortization — (805 ) (805 ) — (57 ) (57 ) Balance at September 30, 2015 $ 17,300 $ (14,966 ) $ 2,334 $ 753 $ (584 ) $ 169 |
Expected Amortization Schedule for Intangible Assets | The following table reflects the expected amortization of core deposit and trust relationship intangible assets over their respective estimated remaining useful lives as of September 30, 2015 : Core Deposit Intangible Trust Relationship Intangible 2015 $ 269 $ 19 2016 1,073 75 2017 992 75 Total $ 2,334 $ 169 |
REGULATORY CAPITAL (Tables)
REGULATORY CAPITAL (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | Current Regulatory Guidance Prior Regulatory Guidance September 30, Minimum Regulatory Capital Required Minimum Regulatory Provision To Be "Well Capitalized" Under Prompt Corrective Action Provisions December 31, Minimum Regulatory Capital Required Minimum Regulatory Provision To Be "Well Capitalized" Under Prompt Corrective Action Provisions Camden National Corporation: Total risk-based capital ratio 14.76 % 8.00 % N/A 15.16 % 8.00 % N/A Tier I risk-based capital ratio 13.67 % 6.00 % N/A 13.97 % 4.00 % N/A Common equity Tier I risk-based capital ratio (1) 11.44 % 4.50 % N/A N/A N/A N/A Tier I leverage capital ratio 9.41 % 4.00 % N/A 9.26 % 4.00 % N/A Camden National Bank: Total risk-based capital ratio 13.47 % 8.00 % 10.00 % 13.85 % 8.00 % 10.00 % Tier I risk-based capital ratio 12.37 % 6.00 % 8.00 % 12.65 % 4.00 % 6.00 % Common equity Tier I risk-based capital ratio (1) 12.37 % 4.50 % 6.50 % N/A N/A N/A Tier I leverage capital ratio 8.52 % 4.00 % 5.00 % 8.38 % 4.00 % 5.00 % (1) Common equity Tier I risk-based capital ratio was a new risk-based capital ratio implemented with Basel III on January 1, 2015. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Period Benefit Cost | The components of net period benefit cost for the periods ended September 30, 2015 and 2014 were as follows: Supplemental Executive Retirement Plan: Three Months Ended Nine Months Ended September 30, Net periodic benefit cost 2015 2014 2015 2014 Service cost $ 77 $ 67 $ 231 $ 201 Interest cost 106 114 318 342 Recognized net actuarial loss 54 35 162 105 Recognized prior service cost 5 5 15 15 Net period benefit cost (1) $ 242 $ 221 $ 726 $ 663 (1) Presented within the consolidated statements of income within salaries and employee benefits. Other Postretirement Benefit Plan: Three Months Ended September 30, Nine Months Ended September 30, Net periodic benefit cost 2015 2014 2015 2014 Service cost $ 15 $ 11 $ 45 $ 33 Interest cost 29 33 87 99 Recognized net actuarial loss 6 2 18 6 Amortization of prior service credit (6 ) (5 ) (18 ) (15 ) Net period benefit cost (1) $ 44 $ 41 $ 132 $ 123 (1) Presented within the consolidated statements of income within salaries and employee benefits. |
REPURCHASE AGREEMENTS (Tables)
REPURCHASE AGREEMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Banking and Thrift [Abstract] | |
Schedule of Underlying Assets of Repurchase Agreements when Amount of Repurchase Agreements Exceeds 10 Percent of Assets | The table below sets forth information regarding the Company’s repurchase agreements accounted for as secured borrowings and types of collateral at the date indicated: September 30, 2015 Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30 - 90 Days Greater than 90 Days Total Customer Repurchase Agreements: Obligations of states and political subdivisions $ 372 $ — $ — $ — $ 372 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 102,016 — — — 102,016 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 71,415 — — — 71,415 Total Customer Repurchase Agreements 173,803 — — — 173,803 Wholesale Repurchase Agreements: Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises — — — 27,959 27,959 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises — — — 2,104 2,104 Total Wholesale Repurchase Agreements — — — 30,063 30,063 Total Repurchase Agreements (1) $ 173,803 $ — $ — $ 30,063 $ 203,866 (1) Total repurchase agreements are presented within other borrowed funds on the consolidated statements of condition. |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Readily Available Market Prices (Level 1) Observable Market Data (Level 2) Company Determined Fair Value (Level 3) September 30, 2015 Financial assets: Loans held for sale $ 890 $ — $ 890 $ — AFS securities: Obligations of U.S. government-sponsored enterprises 5,094 — 5,094 — Obligations of states and political subdivisions 19,872 — 19,872 — Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 381,049 — 381,049 — Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 318,222 — 318,222 — Customer interest rate swap agreements 3,188 — 3,188 — Financial liabilities: Interest rate swap agreements 10,165 — 10,165 — Forward-starting interest rate swap agreements 887 — 887 — Customer interest rate swap agreements 3,188 — 3,188 — December 31, 2014 Financial assets: AFS securities: Obligations of U.S. government-sponsored enterprises $ 5,027 $ — $ 5,027 $ — Obligations of states and political subdivisions 26,777 — 26,777 — Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 381,308 — 381,308 — Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 343,897 — 343,897 — Private issue collateralized mortgage obligations 6,054 — 6,054 — Customer interest rate swap agreements 1,140 — 1,140 — Financial liabilities: Interest rate swap agreements 9,143 — 9,143 — Customer interest rate swap agreements 1,140 — 1,140 — |
Summary of Assets Measured at Fair Value on Non Recurring Basis | The table below highlights financial and non-financial assets measured and recorded at fair value on a non-recurring basis as of September 30, 2015 and December 31, 2014 . Not included in the table below because they were not recorded at fair value at September 30, 2015 and December 31, 2014 are: (i) impaired loans of $13.2 million and $17.6 million, respectively; (ii) MSRs reported of $165,000 and $319,000 , respectively; and (iii) OREO properties of $0 and $305,000 , respectively. Fair Value Readily Available Market Prices (Level 1) Observable Market Data (Level 2) Company Determined Fair Value (Level 3) September 30, 2015 Financial assets: Collateral-dependent impaired loans $ 1,986 $ — $ — $ 1,986 MSRs (1) 392 — 392 — Non-financial assets: OREO 204 — — 204 December 31, 2014 Financial assets: Collateral-dependent impaired loans $ 3,581 $ — $ — $ 3,581 MSRs (1) 173 — 173 — Non-financial assets: OREO 1,282 — — 1,282 (1) Represents MSRs deemed to be impaired and a valuation allowance established to carry at fair value. |
Valuation Methodology and Unobservable Inputs for Level Three Assets Measured at Fair Value on Non Recurring Basis | The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at September 30, 2015 and December 31, 2014: Fair Value Valuation Methodology Unobservable input Discount Range (Weighted-Average) September 30, 2015 Collateral-dependent impaired loans: Partially charged-off $ 1,186 Market approach appraisal of collateral Management adjustment of appraisal 0% (0%) Estimated selling costs 0 - 10% (6%) Specifically reserved 800 Market approach appraisal of collateral Management adjustment of appraisal 0 - 50% (10%) Estimated selling costs 0 - 10% (10%) OREO 204 Market approach appraisal of collateral Management adjustment of appraisal 0% (0%) Estimated selling cost 0 - 10% (1%) December 31, 2014 Collateral-dependent impaired loans: Partially charged-off $ 1,569 Market approach appraisal of collateral Management adjustment 0 - 17% (0%) Estimated selling costs 10% (10%) Specifically reserved 2,012 Market approach appraisal of collateral Management adjustment 0 - 50% (22%) Estimated selling costs 10% (10%) OREO 1,282 Market approach appraisal of collateral Management adjustment 0 - 68% (21%) Estimated selling costs 6 - 10% (9%) |
Carrying Amounts and Estimated Fair Value for Financial Instrument Assets and Liabilities | Junior Subordinated Debentures : The carrying amounts reported in the consolidated statements of condition approximate fair value. The following table presents the carrying amounts and estimated fair value for financial instrument assets and liabilities measured at September 30, 2015 : Carrying Amount Fair Value Readily Available Market Prices (Level 1) Observable Market Prices (Level 2) Company Determined Market Prices (Level 3) Financial assets: Cash and due from banks $ 66,644 $ 66,644 $ 66,644 $ — $ — AFS securities 724,237 724,237 — 724,237 — HTM securities 75,368 76,578 — 76,578 — Loans held for sale 890 890 — 890 — Residential real estate loans 578,033 590,234 — — 590,234 Commercial real estate loans 685,046 677,866 — — 677,866 Commercial loans 250,501 248,747 — — 248,747 Home equity loans 279,186 281,045 — — 281,045 Consumer loans 16,245 16,643 — — 16,643 MSRs (1) 557 1,399 — 1,399 — Interest receivable 6,577 6,577 — 6,577 — Customer interest rate swap agreements 3,188 3,188 — 3,188 — Financial liabilities: Deposits $ 2,008,177 $ 2,010,117 $ 1,408,272 $ 601,845 $ — FHLB advances 55,000 56,515 — 56,515 — Commercial repurchase agreements 30,063 31,012 — 31,012 — Other borrowed funds 434,740 434,836 434,836 — Junior subordinated debentures 44,101 44,101 — 44,101 — Interest payable 505 505 505 — — Interest rate swap agreements 10,165 10,165 — 10,165 — Forward-starting interest rate swap agreements 887 887 — 887 — Customer interest rate swap agreements 3,188 3,188 — 3,188 — (1) Reported fair value represents all MSRs currently being serviced by the Company, regardless of carrying amount. The following table presents the carrying amounts and estimated fair value for financial instrument assets and liabilities measured at December 31, 2014: Carrying Amount Fair Value Readily Available Market Prices (Level 1) Observable Market Prices (Level 2) Company Determined Market Prices (Level 3) Financial assets: Cash and due from banks $ 60,813 $ 60,813 $ 60,813 $ — $ — AFS securities 763,063 763,063 — 763,063 — HTM securities 20,179 20,425 — 20,425 — Residential real estate loans 579,946 596,172 — — 596,172 Commercial real estate loans 635,609 631,434 — — 631,434 Commercial loans 249,823 244,713 — — 244,713 Home equity loans 269,176 270,904 — — 270,904 Consumer loans 16,940 17,007 — — 17,007 MSRs (1) 493 1,447 — 1,447 — Interest receivable 6,017 6,017 — 6,017 — Customer interest rate swap agreement 1,140 1,140 — 1,140 — Financial liabilities: Deposits $ 1,932,097 $ 1,933,805 $ 1,361,604 $ 572,201 $ — FHLB advances 56,039 57,986 — 57,986 — Commercial repurchase agreements 30,097 31,395 — 31,395 — Other borrowed funds 446,842 446,909 446,909 — — Junior subordinated debentures 44,024 44,024 — 44,024 — Interest payable 537 537 537 — — Interest rate swap agreements 9,143 9,143 — 9,143 — Customer interest rate swap agreement 1,140 1,140 — 1,140 — (1) Reported fair value represents all MSRs currently being serviced by the Company, regardless of carrying amount. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Contractual and Notional Amounts of Financial Instruments | The following is a summary of the contractual and notional amounts of the Company’s financial instruments: September 30, December 31, Lending-Related Instruments: Loan origination commitments and unadvanced lines of credit: Home equity $ 336,459 $ 303,815 Commercial and commercial real estate 45,729 47,066 Residential 17,608 10,975 Letters of credit 2,436 3,103 Other commitments 651 1,305 Derivative Financial Instruments: Interest rate swaps 43,000 43,000 Forward-starting interest rate swaps 50,000 — Customer loan swaps 171,302 58,234 |
Summary of Derivative Financial Instruments | The terms of the interest rate swap agreements are as follows: September 30, 2015 Notional Trade Maturity Date Variable Index Fixed Rate Fair Value (1) $ 25,000 2/25/2015 2/25/2018 30-Day FHLBB 1.54% $ (356 ) 25,000 2/25/2015 2/25/2019 30-Day FHLBB 1.74% (531 ) $ 50,000 $ (887 ) (1) Presented within accrued interest and other liabilities on the consolidated statements of condition. The terms of the interest rate swap agreements are as follows: September 30, 2015 December 31, 2014 Notional Trade Maturity Date Variable Index Fixed Rate Fair Value (1) Fair Value (1) $ 10,000 3/18/2009 6/30/2021 3-Month USD LIBOR 5.09% $ (1,240 ) $ (1,092 ) 10,000 7/8/2009 6/30/2029 3-Month USD LIBOR 5.84% (2,763 ) (2,511 ) 10,000 5/6/2010 6/30/2030 3-Month USD LIBOR 5.71% (2,697 ) (2,434 ) 5,000 3/14/2011 3/30/2031 3-Month USD LIBOR 4.35% (1,414 ) (1,279 ) 8,000 5/4/2011 7/7/2031 3-Month USD LIBOR 4.14% (2,051 ) (1,827 ) $ 43,000 $ (10,165 ) $ (9,143 ) (1) Presented within accrued interest and other liabilities on the consolidated statements of condition. |
EARNINGS PER SHARE (Computation
EARNINGS PER SHARE (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Net income | $ 6,456 | $ 6,451 | $ 19,260 | $ 18,482 | |
Dividends and undistributed earnings allocated to participating securities | [1] | (21) | (20) | (61) | (57) |
Net income available to common shareholders | $ 6,435 | $ 6,431 | $ 19,199 | $ 18,425 | |
Weighted-average common shares outstanding for basic EPS | 7,453,222 | 7,421,592 | 7,443,543 | 7,459,972 | |
Dilutive effect of stock-based awards (shares) | [2] | 23,817 | 18,356 | 20,941 | 19,355 |
Weighted-average common and potential common shares for diluted EPS (shares) | 7,477,039 | 7,439,948 | 7,464,484 | 7,479,327 | |
Basic EPS (in dollars per share) | $ 0.86 | $ 0.87 | $ 2.58 | $ 2.47 | |
Diluted EPS (in dollars per share) | $ 0.86 | $ 0.86 | $ 2.57 | $ 2.46 | |
Employee Stock Option | |||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||
Stock options (shares) | [3] | 13,750 | 30,750 | 16,250 | 14,750 |
[1] | Represents dividends paid and undistributed earnings allocated to nonvested stock-based awards that contain non-forfeitable rights to dividends. | ||||
[2] | Represents the effect of the assumed exercise of stock options, vesting of restricted shares, vesting of restricted stock units, and vesting of LTIP awards that have met the performance criteria, as applicable, utilizing the treasury stock method. | ||||
[3] | Represents stock-based awards not included in the computation of potential common shares for purposes of calculating diluted EPS as the exercise prices were greater than the average market price of the Company's common stock. |
SECURITIES (Summary of Amortize
SECURITIES (Summary of Amortized Costs and Estimated Fair Values of Available-For-Sale Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Investments [Line Items] | ||
Available-for-sale, Amortized Cost | $ 719,807 | $ 763,553 |
Available-for-sale, Unrealized Gains | 8,528 | 7,434 |
Available-for-sale, Unrealized Losses | (4,098) | (7,924) |
Available-for-sale, Fair Value | 724,237 | 763,063 |
Held-to-maturity securities, at amortized cost | 75,368 | 20,179 |
Held-to-maturity securities, Unrealized Gains | 1,311 | 265 |
Held-to-maturity securities, Unrealized Losses | (101) | (19) |
Held-to-maturity Securities, Fair Value | 76,578 | 20,425 |
Obligations of U.S. government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Amortized Cost | 4,969 | 4,962 |
Available-for-sale, Unrealized Gains | 125 | 65 |
Available-for-sale, Unrealized Losses | 0 | 0 |
Available-for-sale, Fair Value | 5,094 | 5,027 |
Obligations of states and political subdivisions | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Amortized Cost | 19,471 | 26,080 |
Available-for-sale, Unrealized Gains | 401 | 697 |
Available-for-sale, Unrealized Losses | 0 | 0 |
Available-for-sale, Fair Value | 19,872 | 26,777 |
Held-to-maturity securities, at amortized cost | 75,368 | 20,179 |
Held-to-maturity securities, Unrealized Gains | 1,311 | 265 |
Held-to-maturity securities, Unrealized Losses | (101) | (19) |
Held-to-maturity Securities, Fair Value | 76,578 | 20,425 |
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Amortized Cost | 376,950 | 377,657 |
Available-for-sale, Unrealized Gains | 5,490 | 5,656 |
Available-for-sale, Unrealized Losses | (1,391) | (2,005) |
Available-for-sale, Fair Value | 381,049 | 381,308 |
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Amortized Cost | 318,417 | 348,855 |
Available-for-sale, Unrealized Gains | 2,512 | 953 |
Available-for-sale, Unrealized Losses | (2,707) | (5,911) |
Available-for-sale, Fair Value | $ 318,222 | 343,897 |
Private issue collateralized mortgage obligations | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Amortized Cost | 5,999 | |
Available-for-sale, Unrealized Gains | 63 | |
Available-for-sale, Unrealized Losses | (8) | |
Available-for-sale, Fair Value | $ 6,054 |
SECURITIES (Schedule of Unreali
SECURITIES (Schedule of Unrealized Gross Losses and Estimated Fair values of Investment Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value - Less Than 12 Months | $ 65,347 | $ 120,364 |
Unrealized Losses - Less Than 12 Months | (583) | (611) |
Fair Value - 12 Months of More | 203,010 | 307,951 |
Unrealized Losses - 12 Months or More | (3,515) | (7,313) |
Fair Value | 268,357 | 428,315 |
Unrealized losses | (4,098) | (7,924) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 12,388 | 5,756 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (101) | (19) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 12,388 | 5,756 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | (101) | (19) |
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value - Less Than 12 Months | 53,164 | 42,856 |
Unrealized Losses - Less Than 12 Months | (395) | (171) |
Fair Value - 12 Months of More | 57,721 | 125,439 |
Unrealized Losses - 12 Months or More | (996) | (1,834) |
Fair Value | 110,885 | 168,295 |
Unrealized losses | (1,391) | (2,005) |
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value - Less Than 12 Months | 12,183 | 75,723 |
Unrealized Losses - Less Than 12 Months | (188) | (432) |
Fair Value - 12 Months of More | 145,289 | 182,512 |
Unrealized Losses - 12 Months or More | (2,519) | (5,479) |
Fair Value | 157,472 | 258,235 |
Unrealized losses | (2,707) | (5,911) |
Private issue collateralized mortgage obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value - Less Than 12 Months | 1,785 | |
Unrealized Losses - Less Than 12 Months | (8) | |
Fair Value - 12 Months of More | 0 | |
Unrealized Losses - 12 Months or More | 0 | |
Fair Value | 1,785 | |
Unrealized losses | (8) | |
Obligations of states and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 12,388 | 5,756 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (101) | (19) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 12,388 | 5,756 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (101) | $ (19) |
SECURITIES (Schedule of Company
SECURITIES (Schedule of Company's Sales of Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Investment Securities Sold, Carrying Amount | $ 0 | |||
Proceeds from sales of securities | $ 12,426 | 0 | $ 12,426 | $ 25,695 |
Gross realized gains | 221 | 0 | 221 | 451 |
Gross realized losses | $ (217) | $ 0 | $ (217) | $ 0 |
SECURITIES (Schedule of Amortiz
SECURITIES (Schedule of Amortized Cost and Estimated Fair Values of Debt Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Available-for-sale, Amortized Cost | ||
Due in one year or less | $ 3,594 | |
Due after one year through five years | 87,212 | |
Due after five years through ten years | 110,852 | |
Due after ten years | 518,149 | |
Amortized cost, total | 719,807 | |
Available-for-sale, Fair Value | ||
Due in one year or less | 3,634 | |
Due after one year through five years | 88,411 | |
Due after five years through ten years | 113,415 | |
Due after ten years | 518,777 | |
Fair value, total | 724,237 | |
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis [Abstract] | ||
Due in one year or less | 0 | |
Due after one year through five years | 2,234 | |
Due after five years through ten years | 1,134 | |
Due after ten years | 72,000 | |
Held-to-maturity securities, at amortized cost | 75,368 | $ 20,179 |
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Fair Value [Abstract] | ||
Due in one year or less | 0 | |
Due after one year through five years | 2,290 | |
Due after five years through ten years | 1,143 | |
Due after ten years | 73,145 | |
Held-to-maturity Securities, Fair Value | $ 76,578 | $ 20,425 |
SECURITIES (Narrative) (Detail)
SECURITIES (Narrative) (Detail) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($)security | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)security | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Schedule of Investments [Line Items] | |||||
Net unrealized gains (losses) on available-for-sale securities, net of tax | $ 2,880,000 | $ 2,880,000 | $ (319,000) | ||
Deferred tax assets, unrealized losses on available for sale securities | $ 1,551,000 | 1,551,000 | 172,000 | ||
Payments to acquire investments | $ 136,700,000 | ||||
AFS securities in unrealized loss positions, number of positions | security | 73 | 73 | |||
AFS and HTM securities in continuous unrealized loss position | $ 280,700,000 | $ 280,700,000 | |||
AFS and HTM Securities unrealized loss accumulated in investments | $ 4,200,000 | $ 4,200,000 | |||
Unrealized Loss as a Percent of Amortized Cost | 1.00% | 1.00% | |||
Fair Value - 12 Months of More | $ 203,010,000 | $ 203,010,000 | 307,951,000 | ||
OTTI, investments, available-for-sale securities | 204,000 | $ 0 | |||
Investment securities sold, carrying amount | $ 0 | ||||
Gain (loss) on investments | 4,000 | $ 0 | 4,000 | 451,000 | |
Security pledged as collateral, amortized cost | 508,900,000 | 508,900,000 | 486,200,000 | ||
Security pledged as collateral, fair value | $ 510,300,000 | $ 510,300,000 | 485,600,000 | ||
Mortgage Backed Securities and Collateralized Mortgage Obligations | |||||
Schedule of Investments [Line Items] | |||||
AFS securities in unrealized loss positions, number of positions greater than or equal to one year | security | 34 | 34 | |||
Fair Value - 12 Months of More | $ 203,000,000 | $ 203,000,000 | |||
Private issue collateralized mortgage obligations | |||||
Schedule of Investments [Line Items] | |||||
Fair Value - 12 Months of More | 0 | ||||
Gain (loss) on investments | 4,000 | ||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | |||||
Schedule of Investments [Line Items] | |||||
Fair Value - 12 Months of More | 57,721,000 | 57,721,000 | $ 125,439,000 | ||
Investment securities sold, carrying amount | 7,300,000 | ||||
Available-for-sale Securities | |||||
Schedule of Investments [Line Items] | |||||
Payments to acquire investments | 81,300,000 | ||||
Investment securities sold, carrying amount | 12,400,000 | 12,400,000 | 25,200,000 | ||
Gain (loss) on investments | $ 4,000 | 4,000 | $ 451,000 | ||
Held-to-maturity Securities | |||||
Schedule of Investments [Line Items] | |||||
Payments to acquire investments | $ 55,400,000 |
LOANS AND ALLOWANCE FOR LOAN 39
LOANS AND ALLOWANCE FOR LOAN LOSSES (Composition of Loan Portfolio) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Net deferred fees | $ (348) | $ (528) | |
Loans | 1,830,143 | 1,772,610 | $ 1,726,227 |
Residential Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 583,424 | 585,996 | |
Loans | 583,076 | 585,468 | 577,098 |
Commercial Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 690,935 | 640,661 | |
Loans | 690,935 | 640,661 | 613,510 |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 258,105 | 257,515 | |
Loans | 258,105 | 257,515 | 245,612 |
Home Equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 281,492 | 271,709 | |
Loans | 281,492 | 271,709 | 271,858 |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 16,535 | 17,257 | |
Loans | $ 16,535 | $ 17,257 | $ 18,149 |
LOANS AND ALLOWANCE FOR LOAN 40
LOANS AND ALLOWANCE FOR LOAN LOSSES (Activity in Allowance for Loan Losses by Portfolio Segment) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Reserve for unfunded commitments | $ 24,000 | $ 21,000 | $ 24,000 | $ 21,000 | $ 17,000 | |
Activity in ALL: | ||||||
Beginning balance | 21,194,000 | 21,905,000 | 21,116,000 | 21,590,000 | 21,590,000 | |
Loans charged off | (612,000) | (1,009,000) | (1,510,000) | (2,218,000) | (3,444,000) | |
Recoveries | 269,000 | 155,000 | 554,000 | 538,000 | 746,000 | |
Provision (credit)(1) | [1] | 281,000 | 534,000 | 972,000 | 1,675,000 | 2,224,000 |
Ending balance | 21,132,000 | 21,585,000 | 21,132,000 | 21,585,000 | 21,116,000 | |
Ending Balance: Individually evaluated for impairment | 1,865,000 | 2,447,000 | 1,865,000 | 2,447,000 | 2,239,000 | |
Ending Balance: Collectively evaluated for impairment | 19,267,000 | 19,138,000 | 19,267,000 | 19,138,000 | 18,877,000 | |
Ending Balance: Individually evaluated for impairment | 15,173,000 | 23,223,000 | 15,173,000 | 23,223,000 | 21,179,000 | |
Ending Balance: Collectively evaluated for impairment | 1,814,970,000 | 1,703,004,000 | 1,814,970,000 | 1,703,004,000 | 1,751,431,000 | |
Total Loans Outstanding | 1,830,143,000 | 1,726,227,000 | 1,830,143,000 | 1,726,227,000 | 1,772,610,000 | |
Residential Real Estate | ||||||
Activity in ALL: | ||||||
Beginning balance | 4,689,000 | 5,141,000 | 4,899,000 | 5,603,000 | 5,603,000 | |
Loans charged off | (176,000) | (9,000) | (468,000) | (370,000) | (785,000) | |
Recoveries | 15,000 | 2,000 | 35,000 | 136,000 | 165,000 | |
Provision (credit)(1) | 4,000 | 122,000 | 66,000 | (113,000) | (84,000) | |
Ending balance | 4,532,000 | 5,256,000 | 4,532,000 | 5,256,000 | 4,899,000 | |
Ending Balance: Individually evaluated for impairment | 956,000 | 1,420,000 | 956,000 | 1,420,000 | 1,220,000 | |
Ending Balance: Collectively evaluated for impairment | 3,576,000 | 3,836,000 | 3,576,000 | 3,836,000 | 3,679,000 | |
Ending Balance: Individually evaluated for impairment | 7,499,000 | 10,964,000 | 7,499,000 | 10,964,000 | 9,656,000 | |
Ending Balance: Collectively evaluated for impairment | 575,577,000 | 566,134,000 | 575,577,000 | 566,134,000 | 575,812,000 | |
Total Loans Outstanding | 583,076,000 | 577,098,000 | 583,076,000 | 577,098,000 | 585,468,000 | |
Commercial Real Estate | ||||||
Activity in ALL: | ||||||
Beginning balance | 4,698,000 | 4,361,000 | 4,482,000 | 4,374,000 | 4,374,000 | |
Loans charged off | (71,000) | (100,000) | (174,000) | (276,000) | (361,000) | |
Recoveries | 4,000 | 17,000 | 68,000 | 67,000 | 135,000 | |
Provision (credit)(1) | 661,000 | 82,000 | 916,000 | 195,000 | 334,000 | |
Ending balance | 5,292,000 | 4,360,000 | 5,292,000 | 4,360,000 | 4,482,000 | |
Ending Balance: Individually evaluated for impairment | 352,000 | 222,000 | 352,000 | 222,000 | 251,000 | |
Ending Balance: Collectively evaluated for impairment | 4,940,000 | 4,138,000 | 4,940,000 | 4,138,000 | 4,231,000 | |
Ending Balance: Individually evaluated for impairment | 4,711,000 | 6,710,000 | 4,711,000 | 6,710,000 | 7,658,000 | |
Ending Balance: Collectively evaluated for impairment | 686,224,000 | 606,800,000 | 686,224,000 | 606,800,000 | 633,003,000 | |
Total Loans Outstanding | 690,935,000 | 613,510,000 | 690,935,000 | 613,510,000 | 640,661,000 | |
Commercial | ||||||
Activity in ALL: | ||||||
Beginning balance | 6,777,000 | 6,484,000 | 6,823,000 | 6,220,000 | 6,220,000 | |
Loans charged off | (144,000) | (675,000) | (387,000) | (1,201,000) | (1,544,000) | |
Recoveries | 115,000 | 117,000 | 297,000 | 286,000 | 395,000 | |
Provision (credit)(1) | 85,000 | 35,000 | 100,000 | 656,000 | 1,752,000 | |
Ending balance | 6,833,000 | 5,961,000 | 6,833,000 | 5,961,000 | 6,823,000 | |
Ending Balance: Individually evaluated for impairment | 192,000 | 121,000 | 192,000 | 121,000 | 168,000 | |
Ending Balance: Collectively evaluated for impairment | 6,641,000 | 5,840,000 | 6,641,000 | 5,840,000 | 6,655,000 | |
Ending Balance: Individually evaluated for impairment | 1,720,000 | 3,380,000 | 1,720,000 | 3,380,000 | 1,853,000 | |
Ending Balance: Collectively evaluated for impairment | 256,385,000 | 242,232,000 | 256,385,000 | 242,232,000 | 255,662,000 | |
Total Loans Outstanding | 258,105,000 | 245,612,000 | 258,105,000 | 245,612,000 | 257,515,000 | |
Home Equity | ||||||
Activity in ALL: | ||||||
Beginning balance | 2,144,000 | 2,752,000 | 2,247,000 | 2,403,000 | 2,403,000 | |
Loans charged off | (198,000) | (166,000) | (439,000) | (272,000) | (611,000) | |
Recoveries | 132,000 | 8,000 | 137,000 | 19,000 | 19,000 | |
Provision (credit)(1) | (6,000) | (63,000) | 127,000 | 381,000 | 436,000 | |
Ending balance | 2,072,000 | 2,531,000 | 2,072,000 | 2,531,000 | 2,247,000 | |
Ending Balance: Individually evaluated for impairment | 276,000 | 573,000 | 276,000 | 573,000 | 496,000 | |
Ending Balance: Collectively evaluated for impairment | 1,796,000 | 1,958,000 | 1,796,000 | 1,958,000 | 1,751,000 | |
Ending Balance: Individually evaluated for impairment | 1,037,000 | 1,860,000 | 1,037,000 | 1,860,000 | 1,741,000 | |
Ending Balance: Collectively evaluated for impairment | 280,455,000 | 269,998,000 | 280,455,000 | 269,998,000 | 269,968,000 | |
Total Loans Outstanding | 281,492,000 | 271,858,000 | 281,492,000 | 271,858,000 | 271,709,000 | |
Consumer | ||||||
Activity in ALL: | ||||||
Beginning balance | 268,000 | 318,000 | 281,000 | 319,000 | 319,000 | |
Loans charged off | (23,000) | (59,000) | (42,000) | (99,000) | (143,000) | |
Recoveries | 3,000 | 11,000 | 17,000 | 30,000 | 32,000 | |
Provision (credit)(1) | 13,000 | 23,000 | 5,000 | 43,000 | 73,000 | |
Ending balance | 261,000 | 293,000 | 261,000 | 293,000 | 281,000 | |
Ending Balance: Individually evaluated for impairment | 89,000 | 111,000 | 89,000 | 111,000 | 104,000 | |
Ending Balance: Collectively evaluated for impairment | 172,000 | 182,000 | 172,000 | 182,000 | 177,000 | |
Ending Balance: Individually evaluated for impairment | 206,000 | 309,000 | 206,000 | 309,000 | 271,000 | |
Ending Balance: Collectively evaluated for impairment | 16,329,000 | 17,840,000 | 16,329,000 | 17,840,000 | 16,986,000 | |
Total Loans Outstanding | 16,535,000 | 18,149,000 | 16,535,000 | 18,149,000 | 17,257,000 | |
Unallocated | ||||||
Activity in ALL: | ||||||
Beginning balance | 2,618,000 | 2,849,000 | 2,384,000 | 2,671,000 | 2,671,000 | |
Loans charged off | 0 | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | 0 | |
Provision (credit)(1) | (476,000) | 335,000 | (242,000) | 513,000 | (287,000) | |
Ending balance | 2,142,000 | 3,184,000 | 2,142,000 | 3,184,000 | 2,384,000 | |
Ending Balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | |
Ending Balance: Collectively evaluated for impairment | 2,142,000 | 3,184,000 | 2,142,000 | 3,184,000 | 2,384,000 | |
Ending Balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | |
Ending Balance: Collectively evaluated for impairment | 0 | 0 | 0 | 0 | 0 | |
Total Loans Outstanding | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |
[1] | (1) The provision (credit) for loan losses excludes any impact for the change in the reserve for unfunded commitments, which represents management's estimate of the amount required to reflect the probable inherent losses on outstanding letters of credit and unused lines of credit. The reserve for unfunded commitments is presented within accrued interest and other liabilities on the consolidated statements of condition. At September 30, 2015 and 2014, and December 31, 2014, the reserve for unfunded commitments was $24,000, $21,000 and $17,000, respectively. |
LOANS AND ALLOWANCE FOR LOAN 41
LOANS AND ALLOWANCE FOR LOAN LOSSES LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Provision for Credit Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | ||
LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract] | ||||||
Provision (credit)(1) | [1] | $ 281 | $ 534 | $ 972 | $ 1,675 | $ 2,224 |
Provision for Other Credit Losses | (2) | 5 | 7 | 0 | (4) | |
Provision for Loan, Lease, and Other Losses | $ 279 | $ 539 | $ 979 | $ 1,675 | $ 2,220 | |
[1] | (1) The provision (credit) for loan losses excludes any impact for the change in the reserve for unfunded commitments, which represents management's estimate of the amount required to reflect the probable inherent losses on outstanding letters of credit and unused lines of credit. The reserve for unfunded commitments is presented within accrued interest and other liabilities on the consolidated statements of condition. At September 30, 2015 and 2014, and December 31, 2014, the reserve for unfunded commitments was $24,000, $21,000 and $17,000, respectively. |
LOANS AND ALLOWANCE FOR LOAN 42
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Credit Risk Exposure Indicators by Portfolio Segment) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $ 1,830,143 | $ 1,772,610 | $ 1,726,227 |
Pass (Grades 1-6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,468,877 | 1,423,906 | |
Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 296,784 | 286,954 | |
Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 21,169 | 14,292 | |
Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 42,070 | 45,446 | |
Non-performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,243 | 2,012 | |
Residential Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 583,076 | 585,468 | 577,098 |
Residential Real Estate | Pass (Grades 1-6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 573,229 | 572,589 | |
Residential Real Estate | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Residential Real Estate | Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,599 | 3,579 | |
Residential Real Estate | Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 7,248 | 9,300 | |
Residential Real Estate | Non-performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Commercial Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 690,935 | 640,661 | 613,510 |
Commercial Real Estate | Pass (Grades 1-6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 647,831 | 606,387 | |
Commercial Real Estate | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Commercial Real Estate | Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 12,689 | 4,690 | |
Commercial Real Estate | Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 30,415 | 29,584 | |
Commercial Real Estate | Non-performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 258,105 | 257,515 | 245,612 |
Commercial | Pass (Grades 1-6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 247,817 | 244,930 | |
Commercial | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Commercial | Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 5,881 | 6,023 | |
Commercial | Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 4,407 | 6,562 | |
Commercial | Non-performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Home Equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 281,492 | 271,709 | 271,858 |
Home Equity | Pass (Grades 1-6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Home Equity | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 280,455 | 269,968 | |
Home Equity | Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Home Equity | Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Home Equity | Non-performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,037 | 1,741 | |
Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 16,535 | 17,257 | $ 18,149 |
Consumer | Pass (Grades 1-6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Consumer | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 16,329 | 16,986 | |
Consumer | Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Consumer | Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Consumer | Non-performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $ 206 | $ 271 |
LOANS AND ALLOWANCE FOR LOAN 43
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Loan Aging Analysis by Portfolio Segment) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 11,651 | $ 15,902 | |
Current | 1,818,492 | 1,756,708 | |
Total Loans Outstanding | 1,830,143 | 1,772,610 | $ 1,726,227 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 10,159 | 16,640 | |
Residential Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4,479 | 6,163 | |
Current | 578,597 | 579,305 | |
Total Loans Outstanding | 583,076 | 585,468 | 577,098 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 4,149 | 6,056 | |
Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4,025 | 5,487 | |
Current | 686,910 | 635,174 | |
Total Loans Outstanding | 690,935 | 640,661 | 613,510 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 3,384 | 7,043 | |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,827 | 1,864 | |
Current | 256,278 | 255,651 | |
Total Loans Outstanding | 258,105 | 257,515 | 245,612 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 1,383 | 1,529 | |
Home Equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,057 | 2,106 | |
Current | 280,435 | 269,603 | |
Total Loans Outstanding | 281,492 | 271,709 | 271,858 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 1,037 | 1,741 | |
Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 263 | 282 | |
Current | 16,272 | 16,975 | |
Total Loans Outstanding | 16,535 | 17,257 | $ 18,149 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 206 | 271 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,909 | 4,275 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 977 | 1,206 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,997 | 1,696 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 669 | 456 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Home Equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 211 | 889 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 55 | 28 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 478 | 783 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 303 | 426 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 64 | 0 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 51 | 269 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Home Equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 35 | 88 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 25 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 7,264 | 10,844 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,199 | 4,531 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,964 | 3,791 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,107 | 1,139 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Home Equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 811 | 1,129 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 183 | $ 254 |
LOANS AND ALLOWANCE FOR LOAN 44
LOANS AND ALLOWANCE FOR LOAN LOSSES (Summary of All Troubled Debt Restructuring Loans) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($)loan | Sep. 30, 2014USD ($)loan | Sep. 30, 2015USD ($)loan | Sep. 30, 2014USD ($)loan | Dec. 31, 2014USD ($)loan | |
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | loan | 38 | 38 | 41 | ||
Recorded Investment | $ 5,461 | $ 5,461 | $ 5,943 | ||
Specific Reserve | $ 627 | $ 627 | $ 645 | ||
Number of Contracts | loan | 1,000 | 5,000 | 1,000 | 6,000 | |
Pre-Modification Outstanding Recorded Investment | $ 74 | $ 352 | $ 74 | $ 488 | |
Post-Modification Outstanding Recorded Investment | 78 | 342 | 78 | 491 | |
Specific Reserve | $ 0 | $ 9 | $ 0 | $ 53 | |
Residential Real Estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | loan | 22 | 22 | 24 | ||
Recorded Investment | $ 3,452 | $ 3,452 | $ 3,786 | ||
Specific Reserve | $ 568 | $ 568 | $ 635 | ||
Number of Contracts | loan | 1,000 | 0 | 1,000 | 1,000 | |
Pre-Modification Outstanding Recorded Investment | $ 74 | $ 0 | $ 74 | $ 136 | |
Post-Modification Outstanding Recorded Investment | 78 | 0 | 78 | 149 | |
Specific Reserve | $ 0 | $ 0 | $ 0 | $ 44 | |
Commercial Real Estate | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | loan | 6 | 6 | 7 | ||
Recorded Investment | $ 1,573 | $ 1,573 | $ 1,702 | ||
Specific Reserve | $ 48 | $ 48 | $ 0 | ||
Number of Contracts | loan | 0 | 1,000 | 0 | 1,000 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 235 | $ 0 | $ 235 | |
Post-Modification Outstanding Recorded Investment | 0 | 235 | 0 | 235 | |
Specific Reserve | $ 0 | $ 0 | $ 0 | $ 0 | |
Commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | loan | 9 | 9 | 9 | ||
Recorded Investment | $ 413 | $ 413 | $ 426 | ||
Specific Reserve | $ 11 | $ 11 | $ 10 | ||
Number of Contracts | loan | 0 | 3,000 | 0 | 3,000 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 77 | $ 0 | $ 77 | |
Post-Modification Outstanding Recorded Investment | 0 | 77 | 0 | 77 | |
Specific Reserve | $ 0 | $ 9 | $ 0 | $ 9 | |
Consumer | |||||
Financing Receivable, Modifications [Line Items] | |||||
Number of Contracts | loan | 1 | 1 | 1 | ||
Recorded Investment | $ 23 | $ 23 | $ 29 | ||
Specific Reserve | $ 0 | $ 0 | $ 0 | ||
Number of Contracts | loan | 0 | 1,000 | 0 | 1,000 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 40 | $ 0 | $ 40 | |
Post-Modification Outstanding Recorded Investment | 0 | 30 | 0 | 30 | |
Specific Reserve | $ 0 | $ 0 | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN 45
LOANS AND ALLOWANCE FOR LOAN LOSSES (Summary of Impaired Loan Balances and Associated Allowance by Portfolio Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |||
Financing Receivable, Impaired [Line Items] | |||||||
Recorded Investment - with an allowance recorded | $ 9,361 | $ 15,792 | $ 9,361 | $ 15,792 | $ 14,186 | ||
Unpaid Principal Balance - with an allowance recorded | 9,394 | 15,792 | 9,394 | 15,792 | 14,186 | ||
Related Allowance | 1,865 | 2,447 | 1,865 | 2,447 | 2,239 | ||
Average Recorded Investment - with an allowance recorded | 12,757 | 16,921 | 11,409 | 20,132 | 18,804 | ||
Interest Income Recognized - with an allowance recorded | 60 | 37 | 88 | 112 | 133 | ||
Recorded Investment - without allowance recorded | 5,812 | 7,431 | 5,812 | 7,431 | 6,993 | ||
Unpaid Principal Balance - without allowance recorded | 6,915 | 8,828 | 6,915 | 8,828 | 8,330 | ||
Average Recorded Investment - without allowance recorded | 5,699 | 6,531 | 5,316 | 5,611 | 6,337 | ||
Interest Income Recognized - without allowance recorded | 26 | 22 | 59 | 56 | 83 | ||
Impaired Financing Receivable, Recorded Investment | 15,173 | 23,223 | 15,173 | 23,223 | 21,179 | ||
Impaired financing receivable, unpaid principal balance | 16,309 | 24,620 | 16,309 | 24,620 | 22,516 | ||
Impaired Financing Receivable, Average Recorded Investment | 18,456 | 23,452 | 16,725 | 25,743 | 25,141 | ||
Impaired Financing Receivable, Interest Income, Accrual Method | 86 | [1] | 59 | [1] | 147 | 168 | 216 |
Residential Real Estate | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Recorded Investment - with an allowance recorded | 5,880 | 9,441 | 5,880 | 9,441 | 7,713 | ||
Unpaid Principal Balance - with an allowance recorded | 5,880 | 9,441 | 5,880 | 9,441 | 7,713 | ||
Related Allowance | 956 | 1,420 | 956 | 1,420 | 1,220 | ||
Average Recorded Investment - with an allowance recorded | 7,618 | 9,236 | 6,963 | 9,928 | 9,524 | ||
Interest Income Recognized - with an allowance recorded | 55 | 38 | 82 | 102 | 125 | ||
Recorded Investment - without allowance recorded | 1,619 | 1,523 | 1,619 | 1,523 | 1,943 | ||
Unpaid Principal Balance - without allowance recorded | 2,118 | 1,880 | 2,118 | 1,880 | 2,604 | ||
Average Recorded Investment - without allowance recorded | 1,774 | 1,751 | 1,607 | 2,340 | 2,257 | ||
Interest Income Recognized - without allowance recorded | 4 | 2 | 6 | 5 | 13 | ||
Commercial Real Estate | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Recorded Investment - with an allowance recorded | 1,442 | 2,987 | 1,442 | 2,987 | 3,419 | ||
Unpaid Principal Balance - with an allowance recorded | 1,475 | 2,987 | 1,475 | 2,987 | 3,419 | ||
Related Allowance | 352 | 222 | 352 | 222 | 251 | ||
Average Recorded Investment - with an allowance recorded | 2,161 | 3,142 | 1,930 | 5,588 | 4,911 | ||
Interest Income Recognized - with an allowance recorded | 1 | 2 | |||||
Recorded Investment - without allowance recorded | 3,269 | 3,723 | 3,269 | 3,723 | 4,239 | ||
Unpaid Principal Balance - without allowance recorded | 3,430 | 4,116 | 3,430 | 4,116 | 4,502 | ||
Average Recorded Investment - without allowance recorded | 3,102 | 3,490 | 2,735 | 2,230 | 2,869 | ||
Interest Income Recognized - without allowance recorded | 18 | 14 | 45 | 43 | 59 | ||
Commercial | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Recorded Investment - with an allowance recorded | 1,016 | 1,562 | 1,016 | 1,562 | 1,390 | ||
Unpaid Principal Balance - with an allowance recorded | 1,016 | 1,562 | 1,016 | 1,562 | 1,390 | ||
Related Allowance | 192 | 121 | 192 | 121 | 168 | ||
Average Recorded Investment - with an allowance recorded | 1,320 | 2,724 | 1,188 | 2,653 | 2,466 | ||
Interest Income Recognized - with an allowance recorded | 5 | (2) | 6 | 8 | 8 | ||
Recorded Investment - without allowance recorded | 704 | 1,818 | 704 | 1,818 | 463 | ||
Unpaid Principal Balance - without allowance recorded | 876 | 2,318 | 876 | 2,318 | 606 | ||
Average Recorded Investment - without allowance recorded | 503 | 870 | 567 | 609 | 791 | ||
Interest Income Recognized - without allowance recorded | 4 | 6 | 8 | 8 | 11 | ||
Home Equity | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Recorded Investment - with an allowance recorded | 834 | 1,510 | 834 | 1,510 | 1,410 | ||
Unpaid Principal Balance - with an allowance recorded | 834 | 1,510 | 834 | 1,510 | 1,410 | ||
Related Allowance | 276 | 573 | 276 | 573 | 496 | ||
Average Recorded Investment - with an allowance recorded | 1,410 | 1,486 | 1,099 | 1,571 | 1,545 | ||
Recorded Investment - without allowance recorded | 203 | 350 | 203 | 350 | 331 | ||
Unpaid Principal Balance - without allowance recorded | 454 | 477 | 454 | 477 | 581 | ||
Average Recorded Investment - without allowance recorded | 303 | 403 | 390 | 415 | 399 | ||
Consumer | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Recorded Investment - with an allowance recorded | 189 | 292 | 189 | 292 | 254 | ||
Unpaid Principal Balance - with an allowance recorded | 189 | 292 | 189 | 292 | 254 | ||
Related Allowance | 89 | 111 | 89 | 111 | 104 | ||
Average Recorded Investment - with an allowance recorded | 248 | 333 | 229 | 392 | 358 | ||
Recorded Investment - without allowance recorded | 17 | 17 | 17 | 17 | 17 | ||
Unpaid Principal Balance - without allowance recorded | 37 | 37 | 37 | 37 | 37 | ||
Average Recorded Investment - without allowance recorded | $ 17 | $ 17 | $ 17 | $ 17 | $ 21 | ||
[1] | (1) Negative interest income represents the re-allocation of income between "with an allowance recorded" and "without an allowance recorded" (or vice versa) during the period. |
LOANS AND ALLOWANCE FOR LOAN 46
LOANS AND ALLOWANCE FOR LOAN LOSSES (Narrative) (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($)propertyloan | Sep. 30, 2014USD ($)loan | Sep. 30, 2015USD ($)propertyloan | Sep. 30, 2014USD ($)loan | Dec. 31, 2014USD ($)property | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Financing Receivable, Modifications, Number of Contracts | loan | 1,000 | 5,000 | 1,000 | 6,000 | |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | loan | 0 | 0 | 0 | 0 | |
Interest lost on nonaccrual loans | $ 103,000 | $ 192,000 | $ 375,000 | $ 647,000 | |
Proceeds from the sale of mortgage loans | 24,996,000 | 416,000 | |||
Gain on sale of mortgage loans | 541,000 | 17,000 | |||
Loans held for sale | 890,000 | 890,000 | $ 0 | ||
Other real estate owned | 204,000 | 204,000 | 1,587,000 | ||
FHLB advances, general debt obligations, pledged collateral | 830,600,000 | 830,600,000 | 843,200,000 | ||
Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans restructured due to credit difficulties that are now performing | 5,000,000 | 5,000,000 | 4,500,000 | ||
Financing receivables impaired TDR non-performing | 473,000 | 473,000 | 1,400,000 | ||
Residential Real Estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Mortgage Loans in Process of Foreclosure, Amount | $ 2,600,000 | $ 2,600,000 | $ 4,900,000 | ||
Consumer | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans in foreclosure percentage of non-performing loans | 48.00% | 48.00% | 61.00% | ||
Commercial Real Estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of real estate properties | property | 6 | ||||
Other real estate owned | $ 1,000,000 | ||||
Residential Real Estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of real estate properties | property | 3 | 3 | 11 | ||
Other real estate owned | $ 204,000 | $ 204,000 | $ 575,000 | ||
Fixed Rate Residential Mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Proceeds from the sale of mortgage loans | 11,900,000 | 0 | 24,500,000 | 399,000 | |
Gain on sale of mortgage loans | 249,000 | 0 | 541,000 | 17,000 | |
Loans held for sale | 890,000 | $ 0 | $ 890,000 | $ 0 | |
Nonoperating Income (Expense) | Fixed Rate Residential Mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Gain on sale of mortgage loans | $ 4,000 | ||||
Minimum [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Months | 18 | 18 | |||
Maximum [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Months | 24 | 24 | |||
Non-Residential Building Operators Industry Sector | Loan Concentration Risk | Total Loan Portfolio | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration risk (percentage) | 11.00% | ||||
Non-Residential Building Operators Industry Sector | Loan Concentration Risk | Commercial Real Estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration risk (percentage) | 28.00% |
GOODWILL AND OTHER INTANGIBLE47
GOODWILL AND OTHER INTANGIBLE ASSESTS (Schedule of Changes in Goodwill) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Goodwill [Line Items] | ||
Goodwill, gross | $ 48,376 | $ 48,376 |
Accumulated impairment losses | (3,570) | (3,570) |
Reported goodwill | 44,806 | 44,806 |
Banking | ||
Goodwill [Line Items] | ||
Goodwill, gross | 40,902 | 40,902 |
Accumulated impairment losses | 0 | 0 |
Reported goodwill | 40,902 | 40,902 |
Financial Services | ||
Goodwill [Line Items] | ||
Goodwill, gross | 7,474 | 7,474 |
Accumulated impairment losses | (3,570) | (3,570) |
Reported goodwill | $ 3,904 | $ 3,904 |
GOODWILL AND OTHER INTANGIBLE48
GOODWILL AND OTHER INTANGIBLE ASSESTS (Schedule of Changes in Core Deposit Intangible and Trust Relationship Intangibles) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Amortization | ||||
2015 amortization | $ (288) | $ (287) | $ (862) | $ (861) |
Net | ||||
2015 amortization | (288) | $ (287) | (862) | $ (861) |
Core Deposit Intangible | ||||
Total | ||||
Beginning Balance | 17,300 | |||
Ending Balance | 17,300 | 17,300 | ||
Accumulated Amortization | ||||
Beginning Balance | (14,161) | |||
2015 amortization | (805) | |||
Ending Balance | (14,966) | (14,966) | ||
Net | ||||
Beginning Balance | 3,139 | |||
2015 amortization | (805) | |||
Ending Balance | 2,334 | 2,334 | ||
Trust Relationship Intangible | ||||
Total | ||||
Beginning Balance | 753 | |||
Ending Balance | 753 | 753 | ||
Accumulated Amortization | ||||
Beginning Balance | (527) | |||
2015 amortization | (57) | |||
Ending Balance | (584) | (584) | ||
Net | ||||
Beginning Balance | 226 | |||
2015 amortization | (57) | |||
Ending Balance | $ 169 | $ 169 |
GOODWILL AND OTHER INTANGIBLE49
GOODWILL AND OTHER INTANGIBLE ASSESTS (Schedule of Expected Amortization of Intangible Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Core Deposit Intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,015 | $ 269 | |
2,016 | 1,073 | |
2,017 | 992 | |
Total | 2,334 | $ 3,139 |
Trust Relationship Intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,015 | 19 | |
2,016 | 75 | |
2,017 | 75 | |
Total | $ 169 | $ 226 |
REGULATORY CAPITAL (Details)
REGULATORY CAPITAL (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital to Risk Weighted Assets | 14.76% | 15.16% |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% |
Tier One Risk Based Capital to Risk Weighted Assets | 13.67% | 13.97% |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | 4.00% |
Common Equity Tier I Risk Based Capital Ratio | 11.44% | |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | |
Excess Tier One Leverage Capital to Average Assets | 9.41% | 9.26% |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% |
Acadia Trust [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier One Risk Based Capital Required for Capital Adequacy | $ 2.5 | |
Subsidiaries [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital to Risk Weighted Assets | 13.47% | 13.85% |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Tier One Risk Based Capital to Risk Weighted Assets | 12.37% | 12.65% |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | 4.00% |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 6.00% |
Common Equity Tier I Risk Based Capital Ratio | 12.37% | |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | |
Common Equity Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 6.50% | |
Excess Tier One Leverage Capital to Average Assets | 8.52% | 8.38% |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
REGULATORY CAPITAL Regulatory C
REGULATORY CAPITAL Regulatory Capital Requirements (narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | 4.00% |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% |
Capital Conservation Buffer | 2.50% | |
Value Of Trust Preferred Securities Included In Tier One Capital | $ 43 | |
Acadia Trust [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier One Risk Based Capital Required for Capital Adequacy | $ 2.5 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Supplemental Executive Retirement Plan | |||||
Net periodic benefit cost | |||||
Service cost | $ 77 | $ 67 | $ 231 | $ 201 | |
Interest cost | 106 | 114 | 318 | 342 | |
Recognized net actuarial loss | 54 | 35 | 162 | 105 | |
Recognized prior service cost | 5 | 5 | 15 | 15 | |
Net period benefit cost | [1] | 242 | 221 | 726 | 663 |
Other Postretirement Benefit Plan | |||||
Net periodic benefit cost | |||||
Service cost | 15 | 11 | 45 | 33 | |
Interest cost | 29 | 33 | 87 | 99 | |
Recognized net actuarial loss | 6 | 2 | 18 | 6 | |
Recognized prior service cost | (6) | (5) | (18) | (15) | |
Net period benefit cost | [1] | $ 44 | $ 41 | $ 132 | $ 123 |
[1] | (1) Presented within the consolidated statements of income within salaries and employee benefits. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Details) - $ / shares | Mar. 13, 2015 | Mar. 06, 2015 | Sep. 30, 2015 | Sep. 30, 2015 | May. 01, 2015 | Dec. 31, 2014 |
Management Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock based compensation, vesting period | 2 years | |||||
Stock based compensation, shares granted | 9,379 | |||||
Share-based compensation, purchase date (percent) | 33.00% | |||||
Share price | $ 37.31 | |||||
Defined Contribution Retirement Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | $ 38.85 | |||||
Stock based compensation, shares granted | 2,406 | |||||
Independent Directors' Equity Compensation Program | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share price | $ 38.36 | $ 39.84 | ||||
Share-based compensation, unrestricted stock awards issued | 3,030 | 84 | ||||
Restricted Stock | Equity and Incentive Plan 2012 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock based compensation, number of shares vested | 6,281 | |||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | $ 37.31 | |||||
Stock based compensation, vesting period | 3 years |
REPURCHASE AGREEMENTS (Details)
REPURCHASE AGREEMENTS (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | $ 203,866 |
Overnight and Continuous | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 173,803 |
Up to 30 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 0 |
30 - 90 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 0 |
Greater than 90 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 30,063 |
Commercial Borrower | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 30,063 |
Commercial Borrower | Overnight and Continuous | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 0 |
Commercial Borrower | Up to 30 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 0 |
Commercial Borrower | 30 - 90 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 0 |
Commercial Borrower | Greater than 90 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 30,063 |
Commercial Borrower | Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 27,959 |
Commercial Borrower | Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | Overnight and Continuous | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 0 |
Commercial Borrower | Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | Up to 30 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 0 |
Commercial Borrower | Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 30 - 90 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 0 |
Commercial Borrower | Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | Greater than 90 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 27,959 |
Commercial Borrower | Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 2,104 |
Commercial Borrower | Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | Overnight and Continuous | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 0 |
Commercial Borrower | Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | Up to 30 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 0 |
Commercial Borrower | Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 30 - 90 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 0 |
Commercial Borrower | Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | Greater than 90 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 2,104 |
Retail | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 173,803 |
Retail | Overnight and Continuous | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 173,803 |
Retail | Up to 30 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 0 |
Retail | 30 - 90 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 0 |
Retail | Greater than 90 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 0 |
Retail | Obligations of states and political subdivisions | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 372 |
Retail | Obligations of states and political subdivisions | Overnight and Continuous | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 372 |
Retail | Obligations of states and political subdivisions | Up to 30 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 0 |
Retail | Obligations of states and political subdivisions | 30 - 90 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 0 |
Retail | Obligations of states and political subdivisions | Greater than 90 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 0 |
Retail | Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 102,016 |
Retail | Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | Overnight and Continuous | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 102,016 |
Retail | Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | Up to 30 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 0 |
Retail | Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 30 - 90 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 0 |
Retail | Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | Greater than 90 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 0 |
Retail | Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 71,415 |
Retail | Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | Overnight and Continuous | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 71,415 |
Retail | Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | Up to 30 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 0 |
Retail | Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 30 - 90 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | 0 |
Retail | Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | Greater than 90 Days | |
Assets Sold under Agreements to Repurchase [Line Items] | |
Securities Sold under Agreements to Repurchase | $ 0 |
FAIR VALUE MEASUREMENT (Summary
FAIR VALUE MEASUREMENT (Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financial assets: | ||
Loans held for sale | $ 890 | |
Available-for-sale Securities | 724,237 | $ 763,063 |
Customer interest rate swap agreements | 3,188 | 1,140 |
Financial liabilities: | ||
Customer interest rate swap agreements | 3,188 | 1,140 |
Obligations of U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 5,094 | 5,027 |
Obligations of states and political subdivisions | ||
Financial assets: | ||
Available-for-sale Securities | 19,872 | 26,777 |
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 381,049 | 381,308 |
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 318,222 | 343,897 |
Private issue collateralized mortgage obligations | ||
Financial assets: | ||
Available-for-sale Securities | 6,054 | |
Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Loans held for sale | 890 | |
Customer interest rate swap agreements | 3,188 | 1,140 |
Financial liabilities: | ||
Interest rate swap agreements | 9,143 | |
Customer interest rate swap agreements | 3,188 | 1,140 |
Fair Value, Measurements, Recurring | Obligations of U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 5,094 | 5,027 |
Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ||
Financial assets: | ||
Available-for-sale Securities | 19,872 | 26,777 |
Fair Value, Measurements, Recurring | Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 381,049 | 381,308 |
Fair Value, Measurements, Recurring | Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 318,222 | 343,897 |
Fair Value, Measurements, Recurring | Private issue collateralized mortgage obligations | ||
Financial assets: | ||
Available-for-sale Securities | 6,054 | |
Readily Available Market Prices (Level 1) | ||
Financial assets: | ||
Loans held for sale | 0 | |
Available-for-sale Securities | 0 | 0 |
Customer interest rate swap agreements | 0 | 0 |
Financial liabilities: | ||
Customer interest rate swap agreements | 0 | 0 |
Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Loans held for sale | 0 | |
Financial liabilities: | ||
Customer interest rate swap agreements | 0 | 0 |
Observable Market Data (Level 2) | ||
Financial assets: | ||
Loans held for sale | 890 | |
Available-for-sale Securities | 724,237 | 763,063 |
Customer interest rate swap agreements | 3,188 | 1,140 |
Financial liabilities: | ||
Customer interest rate swap agreements | 3,188 | 1,140 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Loans held for sale | 890 | |
Customer interest rate swap agreements | 3,188 | 1,140 |
Financial liabilities: | ||
Interest rate swap agreements | 9,143 | |
Customer interest rate swap agreements | 3,188 | 1,140 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Obligations of U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 5,094 | 5,027 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ||
Financial assets: | ||
Available-for-sale Securities | 19,872 | 26,777 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 381,049 | 381,308 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 318,222 | 343,897 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Private issue collateralized mortgage obligations | ||
Financial assets: | ||
Available-for-sale Securities | 6,054 | |
Company Determined Fair Value (Level 3) | ||
Financial assets: | ||
Loans held for sale | 0 | |
Available-for-sale Securities | 0 | 0 |
Customer interest rate swap agreements | 0 | 0 |
Financial liabilities: | ||
Customer interest rate swap agreements | 0 | 0 |
Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Loans held for sale | 0 | |
Financial liabilities: | ||
Customer interest rate swap agreements | 0 | 0 |
Interest rate swaps | ||
Financial liabilities: | ||
Interest rate swap agreements | 10,165 | 9,143 |
Interest rate swaps | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Interest rate swap agreements | 10,165 | |
Interest rate swaps | Readily Available Market Prices (Level 1) | ||
Financial liabilities: | ||
Interest rate swap agreements | 0 | 0 |
Interest rate swaps | Observable Market Data (Level 2) | ||
Financial liabilities: | ||
Interest rate swap agreements | 10,165 | 9,143 |
Interest rate swaps | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Interest rate swap agreements | 10,165 | |
Interest rate swaps | Company Determined Fair Value (Level 3) | ||
Financial liabilities: | ||
Interest rate swap agreements | 0 | $ 0 |
Forward-Starting Interest Rate Swap | ||
Financial liabilities: | ||
Interest rate swap agreements | 887 | |
Forward-Starting Interest Rate Swap | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Interest rate swap agreements | 887 | |
Forward-Starting Interest Rate Swap | Readily Available Market Prices (Level 1) | ||
Financial liabilities: | ||
Interest rate swap agreements | 0 | |
Forward-Starting Interest Rate Swap | Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Interest rate swap agreements | 0 | |
Forward-Starting Interest Rate Swap | Observable Market Data (Level 2) | ||
Financial liabilities: | ||
Interest rate swap agreements | 887 | |
Forward-Starting Interest Rate Swap | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Interest rate swap agreements | 887 | |
Forward-Starting Interest Rate Swap | Company Determined Fair Value (Level 3) | ||
Financial liabilities: | ||
Interest rate swap agreements | 0 | |
Forward-Starting Interest Rate Swap | Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Interest rate swap agreements | $ 0 |
FAIR VALUE MEASUREMENT (Summa56
FAIR VALUE MEASUREMENT (Summary of Assets Measured at Fair Value on Non Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Collateral-dependent impaired loans | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | $ 1,986 | $ 3,581 | |
Collateral-dependent impaired loans | Fair Value, Measurements, Nonrecurring | Company Determined Fair Value (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | 1,986 | 3,581 | |
MSRs | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | [1] | 392 | 173 |
MSRs | Fair Value, Measurements, Nonrecurring | Observable Market Data (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | [1] | 392 | 173 |
Other real estate owned | Company Determined Fair Value (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | 204 | 1,282 | |
Other real estate owned | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | 204 | 1,282 | |
Other real estate owned | Fair Value, Measurements, Nonrecurring | Company Determined Fair Value (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | $ 204 | $ 1,282 | |
[1] | (1) Represents MSRs deemed to be impaired and a valuation allowance established to carry at fair value. |
FAIR VALUE MEASUREMENT (Schedul
FAIR VALUE MEASUREMENT (Schedule of Valuation Methodology and Unobservable Inputs) (Details) - Company Determined Fair Value (Level 3) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Impaired Loans Partially Charged Off | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value | $ 1,186 | $ 1,569 | |
Impaired Loans Partially Charged Off | Market Approach Valuation Technique | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Management adjustment of appraisal | 0.00% | 0.00% | |
Estimated selling cost | 0.00% | ||
Impaired Loans Partially Charged Off | Market Approach Valuation Technique | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Management adjustment of appraisal | 0.00% | 17.00% | |
Estimated selling cost | 10.00% | 10.00% | |
Impaired Loans Partially Charged Off | Market Approach Valuation Technique | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Management adjustment of appraisal | 0.00% | 0.00% | |
Estimated selling cost | 6.00% | 10.00% | |
Impaired Loans Specifically Reserved | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value | $ 800 | $ 2,012 | |
Impaired Loans Specifically Reserved | Market Approach Valuation Technique | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Management adjustment of appraisal | 0.00% | 0.00% | |
Estimated selling cost | 0.00% | ||
Impaired Loans Specifically Reserved | Market Approach Valuation Technique | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Management adjustment of appraisal | 50.00% | 50.00% | |
Estimated selling cost | 10.00% | 10.00% | |
Impaired Loans Specifically Reserved | Market Approach Valuation Technique | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Management adjustment of appraisal | 10.00% | 22.00% | |
Estimated selling cost | 10.00% | 10.00% | |
Other real estate owned | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value | $ 204 | $ 1,282 | |
Other real estate owned | Market Approach Valuation Technique | Minimum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Management adjustment of appraisal | 0.00% | 0.00% | |
Estimated selling cost | 0.00% | 6.00% | |
Other real estate owned | Market Approach Valuation Technique | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Management adjustment of appraisal | 0.00% | 68.00% | |
Estimated selling cost | 10.00% | 10.00% | |
Other real estate owned | Market Approach Valuation Technique | Weighted Average | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Management adjustment of appraisal | 0.00% | 21.00% | |
Estimated selling cost | 1.00% | 9.00% |
FAIR VALUE MEASUREMENT (Sched58
FAIR VALUE MEASUREMENT (Schedule of Carrying Amounts and Estimated Fair Value for Financial Instrument Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | ||
Financial assets: | ||||
Cash and due from banks | $ 66,644 | $ 60,813 | ||
Available-for-sale Securities | 724,237 | 763,063 | ||
Held-to-maturity securities, at amortized cost | 75,368 | 20,179 | ||
Held-to-maturity Securities, Fair Value | 76,578 | 20,425 | ||
Loans held for sale | 890 | |||
Mortgage servicing rights | 1,399 | [1] | 1,447 | [2] |
Interest receivable | 6,577 | 6,017 | ||
Customer interest rate swap agreements | 3,188 | 1,140 | ||
Financial liabilities: | ||||
Deposits | 2,010,117 | 1,933,805 | ||
FHLB advances | 56,515 | 57,986 | ||
Commercial repurchase agreements | 31,012 | 31,395 | ||
Other borrowed funds | 434,836 | 446,909 | ||
Junior subordinated debentures | 44,101 | 44,024 | ||
Interest payable | 505 | 537 | ||
Customer interest rate swap agreements | 3,188 | 1,140 | ||
Residential Real Estate | ||||
Financial assets: | ||||
Loans receivable, net of allowance | 590,234 | 596,172 | ||
Commercial Real Estate | ||||
Financial assets: | ||||
Loans receivable, net of allowance | 677,866 | 631,434 | ||
Commercial | ||||
Financial assets: | ||||
Loans receivable, net of allowance | 248,747 | 244,713 | ||
Home Equity | ||||
Financial assets: | ||||
Loans receivable, net of allowance | 281,045 | 270,904 | ||
Consumer | ||||
Financial assets: | ||||
Loans receivable, net of allowance | 16,643 | 17,007 | ||
Readily Available Market Prices (Level 1) | ||||
Financial assets: | ||||
Cash and due from banks | 66,644 | 60,813 | ||
Available-for-sale Securities | 0 | 0 | ||
Held-to-maturity Securities, Fair Value | 0 | 0 | ||
Loans held for sale | 0 | |||
Mortgage servicing rights | 0 | [1] | 0 | [2] |
Interest receivable | 0 | 0 | ||
Customer interest rate swap agreements | 0 | 0 | ||
Financial liabilities: | ||||
Deposits | 1,408,272 | 1,361,604 | ||
FHLB advances | 0 | 0 | ||
Commercial repurchase agreements | $ 0 | 0 | ||
Other borrowed funds | 446,909 | |||
Junior subordinated debentures | $ 0 | 0 | ||
Interest payable | 505 | 537 | ||
Customer interest rate swap agreements | 0 | 0 | ||
Readily Available Market Prices (Level 1) | Residential Real Estate | ||||
Financial assets: | ||||
Loans receivable, net of allowance | 0 | 0 | ||
Readily Available Market Prices (Level 1) | Commercial Real Estate | ||||
Financial assets: | ||||
Loans receivable, net of allowance | 0 | 0 | ||
Readily Available Market Prices (Level 1) | Commercial | ||||
Financial assets: | ||||
Loans receivable, net of allowance | 0 | 0 | ||
Readily Available Market Prices (Level 1) | Home Equity | ||||
Financial assets: | ||||
Loans receivable, net of allowance | 0 | 0 | ||
Readily Available Market Prices (Level 1) | Consumer | ||||
Financial assets: | ||||
Loans receivable, net of allowance | 0 | 0 | ||
Observable Market Data (Level 2) | ||||
Financial assets: | ||||
Cash and due from banks | 0 | 0 | ||
Available-for-sale Securities | 724,237 | 763,063 | ||
Held-to-maturity Securities, Fair Value | 76,578 | 20,425 | ||
Loans held for sale | 890 | |||
Mortgage servicing rights | 1,399 | [1] | 1,447 | [2] |
Interest receivable | 6,577 | 6,017 | ||
Customer interest rate swap agreements | 3,188 | 1,140 | ||
Financial liabilities: | ||||
Deposits | 601,845 | 572,201 | ||
FHLB advances | 56,515 | 57,986 | ||
Commercial repurchase agreements | 31,012 | 31,395 | ||
Other borrowed funds | 434,836 | 0 | ||
Junior subordinated debentures | 44,101 | 44,024 | ||
Interest payable | 0 | 0 | ||
Customer interest rate swap agreements | 3,188 | 1,140 | ||
Observable Market Data (Level 2) | Residential Real Estate | ||||
Financial assets: | ||||
Loans receivable, net of allowance | 0 | 0 | ||
Observable Market Data (Level 2) | Commercial Real Estate | ||||
Financial assets: | ||||
Loans receivable, net of allowance | 0 | 0 | ||
Observable Market Data (Level 2) | Commercial | ||||
Financial assets: | ||||
Loans receivable, net of allowance | 0 | 0 | ||
Observable Market Data (Level 2) | Home Equity | ||||
Financial assets: | ||||
Loans receivable, net of allowance | 0 | 0 | ||
Observable Market Data (Level 2) | Consumer | ||||
Financial assets: | ||||
Loans receivable, net of allowance | 0 | 0 | ||
Company Determined Fair Value (Level 3) | ||||
Financial assets: | ||||
Cash and due from banks | 0 | 0 | ||
Available-for-sale Securities | 0 | 0 | ||
Held-to-maturity Securities, Fair Value | 0 | 0 | ||
Loans held for sale | 0 | |||
Mortgage servicing rights | 0 | [1] | 0 | [2] |
Interest receivable | 0 | 0 | ||
Customer interest rate swap agreements | 0 | 0 | ||
Financial liabilities: | ||||
Deposits | 0 | 0 | ||
FHLB advances | 0 | 0 | ||
Commercial repurchase agreements | 0 | 0 | ||
Other borrowed funds | 0 | 0 | ||
Junior subordinated debentures | 0 | 0 | ||
Interest payable | 0 | 0 | ||
Customer interest rate swap agreements | 0 | 0 | ||
Company Determined Fair Value (Level 3) | Residential Real Estate | ||||
Financial assets: | ||||
Loans receivable, net of allowance | 590,234 | 596,172 | ||
Company Determined Fair Value (Level 3) | Commercial Real Estate | ||||
Financial assets: | ||||
Loans receivable, net of allowance | 677,866 | 631,434 | ||
Company Determined Fair Value (Level 3) | Commercial | ||||
Financial assets: | ||||
Loans receivable, net of allowance | 248,747 | 244,713 | ||
Company Determined Fair Value (Level 3) | Home Equity | ||||
Financial assets: | ||||
Loans receivable, net of allowance | 281,045 | 270,904 | ||
Company Determined Fair Value (Level 3) | Consumer | ||||
Financial assets: | ||||
Loans receivable, net of allowance | 16,643 | 17,007 | ||
Carrying Amount | ||||
Financial assets: | ||||
Cash and due from banks | 66,644 | 60,813 | ||
Available-for-sale Securities | 724,237 | 763,063 | ||
Held-to-maturity securities, at amortized cost | 75,368 | 20,179 | ||
Loans held for sale | 890 | |||
Mortgage servicing rights | 557 | [1] | 493 | [2] |
Interest receivable | 6,577 | 6,017 | ||
Customer interest rate swap agreements | 3,188 | 1,140 | ||
Financial liabilities: | ||||
Deposits | 2,008,177 | 1,932,097 | ||
FHLB advances | 55,000 | 56,039 | ||
Commercial repurchase agreements | 30,063 | 30,097 | ||
Other borrowed funds | 434,740 | 446,842 | ||
Junior subordinated debentures | 44,101 | 44,024 | ||
Interest payable | 505 | 537 | ||
Customer interest rate swap agreements | 3,188 | 1,140 | ||
Carrying Amount | Residential Real Estate | ||||
Financial assets: | ||||
Loans receivable, net of allowance | 578,033 | 579,946 | ||
Carrying Amount | Commercial Real Estate | ||||
Financial assets: | ||||
Loans receivable, net of allowance | 685,046 | 635,609 | ||
Carrying Amount | Commercial | ||||
Financial assets: | ||||
Loans receivable, net of allowance | 250,501 | 249,823 | ||
Carrying Amount | Home Equity | ||||
Financial assets: | ||||
Loans receivable, net of allowance | 279,186 | 269,176 | ||
Carrying Amount | Consumer | ||||
Financial assets: | ||||
Loans receivable, net of allowance | 16,245 | 16,940 | ||
Interest rate swaps | ||||
Financial liabilities: | ||||
Interest rate swap agreements | 10,165 | 9,143 | ||
Interest rate swaps | Readily Available Market Prices (Level 1) | ||||
Financial liabilities: | ||||
Interest rate swap agreements | 0 | 0 | ||
Interest rate swaps | Observable Market Data (Level 2) | ||||
Financial liabilities: | ||||
Interest rate swap agreements | 10,165 | 9,143 | ||
Interest rate swaps | Company Determined Fair Value (Level 3) | ||||
Financial liabilities: | ||||
Interest rate swap agreements | 0 | 0 | ||
Interest rate swaps | Carrying Amount | ||||
Financial liabilities: | ||||
Interest rate swap agreements | 10,165 | $ 9,143 | ||
Forward-Starting Interest Rate Swap | ||||
Financial liabilities: | ||||
Interest rate swap agreements | 887 | |||
Forward-Starting Interest Rate Swap | Readily Available Market Prices (Level 1) | ||||
Financial liabilities: | ||||
Interest rate swap agreements | 0 | |||
Forward-Starting Interest Rate Swap | Observable Market Data (Level 2) | ||||
Financial liabilities: | ||||
Interest rate swap agreements | 887 | |||
Forward-Starting Interest Rate Swap | Company Determined Fair Value (Level 3) | ||||
Financial liabilities: | ||||
Interest rate swap agreements | 0 | |||
Forward-Starting Interest Rate Swap | Carrying Amount | ||||
Financial liabilities: | ||||
Interest rate swap agreements | $ 887 | |||
[1] | Reported fair value represents all MSRs currently being serviced by the Company, regardless of carrying amount. | |||
[2] | (1) Reported fair value represents all MSRs currently being serviced by the Company, regardless of carrying amount. |
FAIR VALUE MEASUREMENT (Narrati
FAIR VALUE MEASUREMENT (Narrative) (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financing receivable, individually evaluated for impairment | $ 15,173,000 | $ 21,179,000 | $ 23,223,000 |
Impaired financing receivable, unpaid principal balance | 16,309,000 | 22,516,000 | $ 24,620,000 |
Non-financial liabilities measured at fair value on recurring basis, net | 0 | ||
Non-financial liabilities measured at fair value on non-recurring basis | 0 | ||
Impaired Loans Specifically Reserved | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired financing receivable, unpaid principal balance | 13,200,000 | 17,600,000 | |
Servicing Contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Servicing asset at amortized cost | 165,000 | 319,000 | |
Other real estate owned | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other real estate | 0 | $ 305,000 | |
Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financing receivable, individually evaluated for impairment | $ 250,000 |
COMMITMENTS AND CONTINGENCIES60
COMMITMENTS AND CONTINGENCIES (Summary of Contractual and Notional Amounts of Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Interest rate swaps | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative financial instruments | $ 43,000 | $ 43,000 |
Forward-Starting Interest Rate Swap | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative financial instruments | 50,000 | 0 |
Customer loan swaps | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative financial instruments | 171,302 | 58,234 |
Other Commitments | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative financial instruments | 651 | 1,305 |
Letters of Credit | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative financial instruments | 2,436 | 3,103 |
Home Equity | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative financial instruments | 336,459 | 303,815 |
Commercial and commercial real estate | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative financial instruments | 45,729 | 47,066 |
Residential | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative financial instruments | $ 17,608 | $ 10,975 |
COMMITMENTS AND CONTINGENCIES61
COMMITMENTS AND CONTINGENCIES (Schedule of Swapped Variable Cost for Fixed Cost and Terms of Interest Rate Swap Agreements) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | ||
Derivative [Line Items] | ||||
Loss on Cash Flow Hedge Ineffectiveness | $ 0 | $ 0 | ||
Interest rate swaps | ||||
Derivative [Line Items] | ||||
Notional Amount | 43,000,000 | 43,000,000 | $ 43,000,000 | |
Fair Value | [1] | (10,165,000) | (10,165,000) | (9,143,000) |
Interest rate swaps | Contract, One | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 10,000,000 | $ 10,000,000 | ||
Trade Date | Mar. 18, 2009 | |||
Maturity Date | Jun. 30, 2021 | |||
Fixed Rate Paid | 5.09% | 5.09% | ||
Fair Value | [1] | $ (1,240,000) | $ (1,240,000) | (1,092,000) |
Interest rate swaps | Contract, Two | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 10,000,000 | $ 10,000,000 | ||
Trade Date | Jul. 8, 2009 | |||
Maturity Date | Jun. 30, 2029 | |||
Fixed Rate Paid | 5.84% | 5.84% | ||
Fair Value | [1] | $ (2,763,000) | $ (2,763,000) | (2,511,000) |
Interest rate swaps | Contract, Three | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 10,000,000 | $ 10,000,000 | ||
Trade Date | May 6, 2010 | |||
Maturity Date | Jun. 30, 2030 | |||
Fixed Rate Paid | 5.71% | 5.71% | ||
Fair Value | [1] | $ (2,697,000) | $ (2,697,000) | (2,434,000) |
Interest rate swaps | Contract, Four | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 5,000,000 | $ 5,000,000 | ||
Trade Date | Mar. 14, 2011 | |||
Maturity Date | Mar. 30, 2031 | |||
Fixed Rate Paid | 4.35% | 4.35% | ||
Fair Value | [1] | $ (1,414,000) | $ (1,414,000) | (1,279,000) |
Interest rate swaps | Contract, Five | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 8,000,000 | $ 8,000,000 | ||
Trade Date | May 4, 2011 | |||
Maturity Date | Jul. 7, 2031 | |||
Fixed Rate Paid | 4.14% | 4.14% | ||
Fair Value | [1] | $ (2,051,000) | $ (2,051,000) | (1,827,000) |
Forward-Starting Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Notional Amount | 50,000,000 | 50,000,000 | $ 0 | |
Fair Value | [2] | (887,000) | (887,000) | |
Forward-Starting Interest Rate Swap | Contract, One | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 25,000,000 | $ 25,000,000 | ||
Trade Date | Feb. 25, 2015 | |||
Maturity Date | Feb. 25, 2018 | |||
Variable Index Received | 30 days | |||
Fixed Rate Paid | 1.54% | 1.54% | ||
Fair Value | [2] | $ (356,000) | $ (356,000) | |
Forward-Starting Interest Rate Swap | Contract, Two | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 25,000,000 | $ 25,000,000 | ||
Trade Date | Feb. 25, 2015 | |||
Maturity Date | Feb. 25, 2019 | |||
Variable Index Received | 30 days | |||
Fixed Rate Paid | 1.74% | 1.74% | ||
Fair Value | [2] | $ (531,000) | $ (531,000) | |
[1] | Presented within accrued interest and other liabilities on the consolidated statements of condition. | |||
[2] | Presented within accrued interest and other liabilities on the consolidated statements of condition. |
COMMITMENTS AND CONTINGENCIES62
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015USD ($)swap | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | ||
Other Commitments [Line Items] | ||||||
Loss Contingency Accrual | $ 0 | $ 0 | ||||
Loss on Cash Flow Hedge Ineffectiveness | 0 | 0 | ||||
Net change in unrealized income (losses) on cash flow hedging derivatives, net of tax of $631, and $583, respectively | $ (1,763,000) | $ (93,000) | (1,241,000) | $ (1,988,000) | ||
Number of interest rate swap agreements | swap | 2 | |||||
Commercial Loan | ||||||
Other Commitments [Line Items] | ||||||
Notional amount of derivative | $ 85,700,000 | 85,700,000 | $ 29,100,000 | |||
Cash held as collateral | 3,000,000 | 3,000,000 | ||||
Derivative, fair value | 3,188,000 | 3,188,000 | 1,100,000 | |||
Interest rate swaps | ||||||
Other Commitments [Line Items] | ||||||
Notional amount of derivative | 43,000,000 | 43,000,000 | 43,000,000 | |||
Cash held as collateral | 10,300,000 | 10,300,000 | ||||
Net change in unrealized income (losses) on cash flow hedging derivatives, net of tax of $631, and $583, respectively | 665,000 | |||||
Derivative, fair value | [1] | (10,165,000) | (10,165,000) | (9,143,000) | ||
Forward-Starting Interest Rate Swap | ||||||
Other Commitments [Line Items] | ||||||
Notional amount of derivative | 50,000,000 | 50,000,000 | $ 0 | |||
Cash held as collateral | 824,000 | 824,000 | ||||
Net change in unrealized income (losses) on cash flow hedging derivatives, net of tax of $631, and $583, respectively | (576,000) | |||||
Derivative, fair value | [2] | $ (887,000) | $ (887,000) | |||
[1] | Presented within accrued interest and other liabilities on the consolidated statements of condition. | |||||
[2] | Presented within accrued interest and other liabilities on the consolidated statements of condition. |
MERGER AND ACQUISITION ACTIVI63
MERGER AND ACQUISITION ACTIVITY (Details) | Oct. 16, 2015USD ($)$ / sharesshares | Sep. 30, 2015USD ($)shares | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)shares | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($)shares |
Business Acquisition [Line Items] | ||||||
Assets | $ 2,871,798,000 | $ 2,871,798,000 | $ 2,789,853,000 | |||
Loans and Leases Receivable, Net Amount | 1,809,011,000 | 1,809,011,000 | 1,751,494,000 | |||
Deposits | $ 2,008,177,000 | $ 2,008,177,000 | $ 1,932,097,000 | |||
Common stock, outstanding (shares) | shares | 7,454,045 | 7,454,045 | 7,426,222 | |||
Merger and acquisition costs | $ 766,000 | $ 0 | $ 1,629,000 | $ 0 | ||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | (537,000) | |||||
SBM Financial, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Merger and acquisition costs | $ 766,000 | $ 1,600,000 | ||||
Effective income tax rate increase (percent) | 0.00% | 2.10% | ||||
Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | $ (537,000) | |||||
Common Stock | SBM Financial, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | $ 537,000 | |||||
Subsequent Event | SBM Financial, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Business acquisition, cash consideration, per share amount (dollars per share) | $ / shares | $ 206 | |||||
Business acquisition, stock for stock consideration, conversion ratio | 5.421 | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 80.00% | |||||
Common stock, outstanding (shares) | shares | 10,203,807 | |||||
Consideration transferred | $ 136,700,000 | |||||
Payments to Acquire Businesses, Gross | $ 26,100,000 | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 2,749,762 | |||||
Share Price | $ / shares | $ 39.48 | |||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 108,600,000 | |||||
Share-based compensation, options, nonvested (shares) | shares | 92,688 | |||||
Subsequent Event | Nonqualified Stock Options [Member] | SBM Financial, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 2,000,000 | |||||
Subsequent Event | Pro Forma [Member] | SBM Financial, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Assets | 815,000,000 | |||||
Loans and Leases Receivable, Net Amount | 640,000,000 | |||||
Deposits | $ 710,000,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event $ in Millions | Oct. 08, 2015USD ($) |
Subsequent Event [Line Items] | |
Subordinated Debt | $ 15 |
Subordinated Borrowing, Interest Rate | 5.50% |