Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 02, 2016 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
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 | 10,281,163 |
CONSOLIDATED STATEMENTS OF COND
CONSOLIDATED STATEMENTS OF CONDITION (CURRENT PERIOD UNAUDITED) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 96,443 | $ 79,488 |
Securities: | ||
Available-for-sale securities, at fair value | 799,526 | 750,338 |
Held-to-maturity securities, at amortized cost | 93,609 | 84,144 |
Federal Home Loan Bank and Federal Reserve Bank stock, at cost | 28,854 | 21,513 |
Total securities | 921,989 | 855,995 |
Loans held for sale | 22,928 | 10,958 |
Loans | 2,585,300 | 2,490,206 |
Less: allowance for loan losses | (23,717) | (21,166) |
Net loans | 2,561,583 | 2,469,040 |
Goodwill | 94,697 | 95,657 |
Other intangible assets | 7,715 | 8,667 |
Bank-owned life insurance | 77,352 | 59,917 |
Premises and equipment, net | 44,299 | 45,959 |
Deferred tax assets | 34,559 | 39,716 |
Interest receivable | 8,757 | 7,985 |
Other real estate owned | 855 | 1,304 |
Other assets | 39,209 | 34,658 |
Total assets | 3,910,386 | 3,709,344 |
Deposits: | ||
Demand | 381,323 | 357,673 |
Interest checking | 752,036 | 740,084 |
Savings and money market | 940,577 | 912,668 |
Certificates of deposit | 493,488 | 516,867 |
Brokered deposits | 206,063 | 199,087 |
Total deposits | 2,773,487 | 2,726,379 |
Federal Home Loan Bank advances | 45,000 | 55,000 |
Other borrowed funds | 586,799 | 458,763 |
Subordinated debentures | 58,677 | 58,599 |
Accrued interest and other liabilities | 61,567 | 47,413 |
Total liabilities | 3,525,530 | 3,346,154 |
Commitments and Contingencies | ||
Shareholders’ Equity | ||
Common stock, no par value; authorized 20,000,000 shares, issued and outstanding 10,281,113 and 10,220,478 shares as of June 30, 2016 and December 31, 2015, respectively | 154,574 | 153,083 |
Retained earnings | 234,290 | 222,329 |
Accumulated other comprehensive income (loss): | ||
Net unrealized gains (losses) on available-for-sale securities, net of tax | 7,347 | (3,801) |
Net unrealized losses on derivative instruments, net of tax | (9,384) | (6,374) |
Net unrecognized losses on postretirement plans, net of tax | (1,971) | (2,047) |
Total accumulated other comprehensive loss | (4,008) | (12,222) |
Total shareholders’ equity | 384,856 | 363,190 |
Total liabilities and shareholders’ equity | $ 3,910,386 | $ 3,709,344 |
CONSOLIDATED STATEMENTS OF CON3
CONSOLIDATED STATEMENTS OF CONDITION (CURRENT PERIOD UNAUDITED) (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Common stock, no par value (dollars per share) | $ 0 | $ 0 |
Common stock, authorized | 20,000,000 | 20,000,000 |
Common stock, issued | 10,281,113 | 10,220,478 |
Common stock, outstanding | 10,281,113 | 10,220,478 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest Income | ||||
Interest and fees on loans | $ 27,706 | $ 19,342 | $ 54,722 | $ 37,426 |
Interest on U.S. government and sponsored enterprise obligations | 4,016 | 3,717 | 8,006 | 7,589 |
Interest on state and political subdivision obligations | 711 | 493 | 1,425 | 880 |
Interest on federal funds sold and other investments | 342 | 105 | 603 | 210 |
Total interest income | 32,775 | 23,657 | 64,756 | 46,105 |
Interest Expense | ||||
Interest on deposits | 2,109 | 1,544 | 4,151 | 3,073 |
Interest on borrowings | 1,313 | 847 | 2,449 | 1,707 |
Interest on subordinated debentures | 849 | 631 | 1,700 | 1,256 |
Total interest expense | 4,271 | 3,022 | 8,300 | 6,036 |
Net interest income | 28,504 | 20,635 | 56,456 | 40,069 |
Provision for credit losses | 2,852 | 254 | 3,724 | 700 |
Net interest income after provision for credit losses | 25,652 | 20,381 | 52,732 | 39,369 |
Non-Interest Income | ||||
Service charges on deposit accounts | 1,833 | 1,593 | 3,557 | 3,080 |
Other service charges and fees | 2,331 | 1,584 | 4,659 | 3,094 |
Mortgage banking income, net | 1,706 | 346 | 2,514 | 585 |
Income from fiduciary services | 1,342 | 1,328 | 2,511 | 2,548 |
Bank-owned life insurance | 892 | 402 | 1,314 | 824 |
Brokerage and insurance commissions | 517 | 502 | 975 | 951 |
Net gain on sale of securities | 4 | 0 | 4 | 0 |
Other income | 1,927 | 555 | 2,935 | 1,375 |
Total non-interest income | 10,552 | 6,310 | 18,469 | 12,457 |
Non-Interest Expense | ||||
Salaries and employee benefits | 11,999 | 8,484 | 23,590 | 16,859 |
Furniture, equipment and data processing | 2,381 | 1,902 | 4,808 | 3,825 |
Net occupancy costs | 1,790 | 1,239 | 3,667 | 2,711 |
Consulting and professional fees | 982 | 673 | 1,867 | 1,264 |
Regulatory assessments | 774 | 511 | 1,495 | 1,021 |
Other real estate owned and collection costs | 496 | 449 | 1,152 | 1,011 |
Amortization of intangible assets | 476 | 287 | 952 | 574 |
Merger and acquisition costs | 177 | 128 | 821 | 863 |
Other expenses | 3,255 | 2,484 | 6,887 | 4,830 |
Total non-interest expense | 22,330 | 16,157 | 45,239 | 32,958 |
Income before income taxes | 13,874 | 10,534 | 25,962 | 18,868 |
Income Taxes | 4,258 | 3,341 | 7,700 | 6,064 |
Net Income | $ 9,616 | $ 7,193 | $ 18,262 | $ 12,804 |
Per Share Data | ||||
Basic earnings per share | $ 0.93 | $ 0.97 | $ 1.77 | $ 1.72 |
Diluted earnings per share | $ 0.92 | $ 0.96 | $ 1.76 | $ 1.71 |
Weighted average number of common shares outstanding | 10,276,876 | 7,446,156 | 10,268,440 | 7,438,626 |
Diluted weighted average number of common shares outstanding | 10,327,374 | 7,467,365 | 10,315,245 | 7,459,464 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Net Income | $ 9,616 | $ 7,193 | $ 18,262 | $ 12,804 | |
Net change in unrealized gains (losses) on available-for-sale securities: | |||||
Net change in unrealized gains (losses) on available-for-sale securities, net of tax of ($1,821), $2,138, ($6,004) and ($74), respectively | 3,382 | (3,970) | 11,151 | 138 | |
Net reclassification adjustment for gains included in net income, net of tax of $1, $0, $1 and $0, respectively | [1] | (3) | 0 | (3) | 0 |
Net change in unrealized gains (losses) on available-for-sale securities, net of tax | 3,379 | (3,970) | 11,148 | 138 | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax [Abstract] | |||||
Net change in unrealized gains (losses) on cash flow hedging derivatives, net of tax of $705, ($857), $1,966, and ($106), respectively | (1,309) | 1,591 | (3,652) | 196 | |
Net reclassification adjustment for effective portion of cash flow hedges included in interest expense, net of tax of ($218), ($55), ($345) and ($175), respectively | [2] | 404 | 103 | 642 | 326 |
Net change in unrealized gains (losses) on cash flow hedging derivatives, net of tax | (905) | 1,694 | (3,010) | 522 | |
Reclassification of amortization of net unrecognized actuarial loss and prior service cost, net of tax of ($21), ($20), ($42) and ($41), respectively | [3] | 38 | 39 | 76 | 77 |
Other comprehensive income (loss) | 2,512 | (2,237) | 8,214 | 737 | |
Comprehensive Income | $ 12,128 | $ 4,956 | $ 26,476 | $ 13,541 | |
[1] | (2) Reclassified into the consolidated statements of income in interest on subordinated debentures. | ||||
[2] | Reclassified into the consolidated statements of income in interest on subordinated debentures. | ||||
[3] | (3) 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 | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net change in unrealized gains on available-for-sale securities, tax effect | $ (1,821) | $ 2,138 | $ (6,004) | $ (74) |
Net change in unrealized loss on cash flow hedging derivatives, tax effect | 1 | 0 | 1 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | (218) | (55) | (345) | (175) |
Net reclassification adjustment for effective portion of cash flow hedges included in interest expense, tax effect | 705 | (857) | 1,966 | (106) |
Reclassification of amortization of prior service cost included in net periodic cost, tax effect | $ (21) | $ (20) | $ (42) | $ (41) |
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, 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 | 12,804 | 12,804 | ||
Other comprehensive income, net of tax | 737 | 737 | ||
Stock-based compensation expense | 410 | $ 410 | ||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit (shares) | 23,423 | |||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit | 375 | $ 375 | ||
Stock Repurchased During Period, Shares | 0 | |||
Stock Repurchased During Period, Value | 421 | $ (421) | ||
Cash dividends declared ($0.60 and $0.60 per share in six months ended June 30, 2015 and June 30, 2016) | (4,474) | (4,474) | ||
Ending Balance (in shares) at Jun. 30, 2015 | 7,449,645 | |||
Ending Balance at Jun. 30, 2015 | 254,540 | $ 41,919 | 220,309 | (7,688) |
Beginning Balance (in shares) at Dec. 31, 2015 | 10,220,478 | |||
Beginning Balance at Dec. 31, 2015 | 363,190 | $ 153,083 | 222,329 | (12,222) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net Income | 18,262 | 18,262 | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | 72 | (72) | ||
Other comprehensive income, net of tax | 8,214 | 8,214 | ||
Stock-based compensation expense | 1,042 | $ 1,042 | ||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit (shares) | 60,635 | |||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit | 377 | $ 377 | ||
Cash dividends declared ($0.60 and $0.60 per share in six months ended June 30, 2015 and June 30, 2016) | (6,229) | (6,229) | ||
Ending Balance (in shares) at Jun. 30, 2016 | 10,281,113 | |||
Ending Balance at Jun. 30, 2016 | $ 384,856 | $ 154,574 | $ 234,290 | $ (4,008) |
CONSOLIDATED STATEMENTS OF CHA8
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash dividends declared, per share | $ 0.60 | $ 0.60 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Operating Activities | ||||||
Net Income | $ 9,616 | $ 8,646 | $ 7,193 | $ 18,262 | $ 12,804 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Provision for credit losses | 2,852 | 254 | 3,724 | 700 | $ 1,936 | |
Depreciation expense | 2,456 | 1,446 | ||||
Purchase accounting accretion, net | (3,073) | (182) | ||||
Investment securities amortization, net | 1,405 | 1,049 | ||||
Stock-based compensation expense | 1,042 | 410 | ||||
Amortization of intangible assets | 476 | 287 | 952 | 574 | ||
Net gain on sale of investment securities | (4) | 0 | (4) | 0 | ||
Net increase in other real estate owned valuation allowance and (gain) loss on disposition | (152) | 216 | ||||
Originations of mortgage loans held for sale | (107,026) | (13,949) | ||||
Proceeds from the sale of mortgage loans | 97,375 | 12,833 | ||||
Gain on sale of mortgage loans | (2,166) | (292) | ||||
Decrease (increase) in other assets | 6,509 | (896) | ||||
Decrease in other liabilities | (2,254) | (57) | ||||
Net cash provided by operating activities | 17,050 | 14,656 | ||||
Investing Activities | ||||||
Proceeds from sales and maturities of available-for-sale securities | 65,544 | 76,042 | ||||
Purchase of available-for-sale securities | (98,728) | (56,005) | ||||
Purchase of held-to-maturity securities | (9,718) | (36,334) | ||||
Net increase in loans | (93,709) | (36,747) | ||||
Purchase of bank-owned life insurance, net of death benefit proceeds | (16,122) | 0 | ||||
Purchase of Federal Home Loan Bank and Federal Reserve Bank stock | (7,341) | (10) | ||||
Proceeds from the sale of other real estate owned | 633 | 2,268 | ||||
Recoveries of previously charged-off loans | 254 | 285 | ||||
Purchase of premises and equipment | (866) | (1,117) | ||||
Proceeds from the sale of premises and equipment | 90 | 0 | ||||
Net cash used by investing activities | (159,963) | (51,618) | ||||
Financing Activities | ||||||
Net increase in deposits | 47,605 | 49,085 | ||||
Repayments on Federal Home Loan Bank long-term advances | (10,000) | (10,038) | ||||
Net increase (decrease) in other borrowed funds | 128,071 | (2,883) | ||||
Equity Issuance Costs | 0 | (421) | ||||
Exercise of stock options and issuance of restricted stock, net of repurchase for tax withholdings and tax benefit | 377 | 375 | ||||
Cash dividends paid on common stock | (6,185) | (4,474) | ||||
Net cash provided by financing activities | 159,868 | 31,644 | ||||
Net increase (decrease) in cash and cash equivalents | 16,955 | (5,318) | ||||
Cash and cash equivalents at beginning of period | $ 79,488 | 79,488 | 60,813 | 60,813 | ||
Cash and cash equivalents at end of period | $ 96,443 | $ 55,495 | 96,443 | 55,495 | $ 79,488 | |
Supplemental information | ||||||
Interest paid | 7,800 | 3,040 | ||||
Income taxes paid | 103 | 4,350 | ||||
Transfer from loans to other real estate owned | 32 | 1,548 | ||||
Held-to-maturity securities purchased but unsettled | 0 | 3,888 | ||||
Measurement-period adjustments | $ 960 | $ 0 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited consolidated interim 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 June 30, 2016 and December 31, 2015 , the consolidated statements of income for the three and six months ended June 30, 2016 and 2015 , the consolidated statements of comprehensive income for the three and six months ended June 30, 2016 and 2015 , the consolidated statements of changes in shareholders' equity for the six months ended June 30, 2016 and 2015 , and the consolidated statements of cash flows for the six months ended June 30, 2016 and 2015 . 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 six months ended June 30, 2016 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, 2015 Annual Report on Form 10-K. The defined terms, 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 IRS: Internal Revenue Service AFS: Available-for-sale LIBOR: London Interbank Offered Rate ALCO: Asset/Liability Committee LTIP: Long-Term Performance Share Plan ALL: Allowance for loan losses Management ALCO: Management Asset/Liability Committee AOCI: Accumulated other comprehensive income (loss) MBS: Mortgage-backed security ASC: Accounting Standards Codification 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 ASU: Accounting Standards Update 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 Bank: Camden National Bank, a wholly-owned subsidiary of Camden National Corporation MSHA: Maine State Housing Authority Board ALCO: Board of Directors' Asset/Liability Committee MSRs: Mortgage servicing rights BOLI: Bank-owned life insurance MSPP: Management Stock Purchase Plan BSA: Bank Secrecy Act OTTI: Other-than-temporary impairment CCTA: Camden Capital Trust A, an unconsolidated entity formed by Camden National Corporation NIM: Net interest margin on a fully-taxable basis CDARS: Certificate of Deposit Account Registry System N.M.: Not meaningful CDs: Certificate of deposits NRV: Net realizable value CMO: Collateralized mortgage obligation OCC: Office of the Comptroller of the Currency Company: Camden National Corporation OCI: Other comprehensive income (loss) CSV: Cash surrender value OFAC: Office of Foreign Assets Control DCRP: Defined Contribution Retirement Plan OREO: Other real estate owned EPS: Earnings per share SBM: SBM Financial, Inc., the parent company of The Bank of Maine FASB: Financial Accounting Standards Board SERP: Supplemental executive retirement plans FDIC: Federal Deposit Insurance Corporation TDR: Troubled-debt restructured loan FHLB: Federal Home Loan Bank UBCT: Union Bankshares Capital Trust I, an unconsolidated entity formed by Union Bankshares Company that was subsequently acquired by Camden National Corporation FHLBB: Federal Home Loan Bank of Boston U.S.: United States of America FRB: Federal Reserve Bank USD: United States Dollar Freddie Mac: Federal Home Loan Mortgage Corporation 2003 Plan: 2003 Stock Option and Incentive Plan GAAP: Generally accepted accounting principles in the United States 2012 Plan: 2012 Equity and Incentive Plan HPFC: Healthcare Professional Funding Corporation, a wholly-owned subsidiary of Camden National Bank 2013 Repurchase Program: 2013 Common Stock Repurchase Program, approved by the Company's Board of Directors HTM: Held-to-maturity |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2016 | |
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 Six Months Ended 2016 2015 2016 2015 Net income $ 9,616 $ 7,193 $ 18,262 $ 12,804 Dividends and undistributed earnings allocated to participating securities (1) (49 ) (23 ) (81 ) (40 ) Net income available to common shareholders $ 9,567 $ 7,170 $ 18,181 $ 12,764 Weighted-average common shares outstanding for basic EPS 10,276,876 7,446,156 10,268,440 7,438,626 Dilutive effect of stock-based awards (2) 50,498 21,209 46,805 20,838 Weighted-average common and potential common shares for diluted EPS 10,327,374 7,467,365 10,315,245 7,459,464 Earnings per common share: Basic EPS $ 0.93 $ 0.97 $ 1.77 $ 1.72 Diluted EPS $ 0.92 $ 0.96 $ 1.76 $ 1.71 Awards excluded from the calculation of diluted EPS (3) : Stock options 12,250 15,250 12,250 15,250 (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 and are considered anti-dilutive. 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 includes 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 | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 AFS Securities: Obligations of U.S. government-sponsored enterprises $ 4,975 $ 156 $ — $ 5,131 Obligations of states and political subdivisions 9,765 279 — 10,044 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 461,493 9,117 (139 ) 470,471 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 305,878 3,064 (1,330 ) 307,612 Subordinated corporate bonds 5,481 142 — 5,623 Total AFS debt securities 787,592 12,758 (1,469 ) 798,881 Equity securities 632 13 — 645 Total AFS securities $ 788,224 $ 12,771 $ (1,469 ) $ 799,526 HTM Securities: Obligations of states and political subdivisions $ 93,609 $ 4,086 $ (3 ) $ 97,692 Total HTM securities $ 93,609 $ 4,086 $ (3 ) $ 97,692 December 31, 2015 AFS Securities: Obligations of U.S. government-sponsored enterprises $ 4,971 $ 69 $ — $ 5,040 Obligations of states and political subdivisions 17,355 339 — 17,694 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 419,429 3,474 (3,857 ) 419,046 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 312,719 409 (6,271 ) 306,857 Subordinated corporate bonds 1,000 — (4 ) 996 Total AFS debt securities 755,474 4,291 (10,132 ) 749,633 Equity securities 712 2 (9 ) 705 Total AFS securities $ 756,186 $ 4,293 $ (10,141 ) $ 750,338 HTM Securities: Obligations of states and political subdivisions $ 84,144 $ 1,564 $ (61 ) $ 85,647 Total HTM securities $ 84,144 $ 1,564 $ (61 ) $ 85,647 Net unrealized gains on AFS securities at June 30, 2016 included in AOCI amounted to $7.3 million , net of a deferred tax liability of $4.0 million . Net unrealized losses on AFS securities at December 31, 2015 included in AOCI amounted to $3.8 million , net of a deferred tax benefit of $2.0 million . During the first six months of 2016, the Company purchased investment securities totaling $108.4 million . The Company designated $98.7 million as AFS securities and $9.7 million as HTM securities. During the first six months of 2015, the Company purchased investment securities totaling $96.2 million . The Company designated $56.0 million as AFS securities and $40.2 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, and 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 cost basis 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 June 30, 2016 and December 31, 2015 , 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 June 30, 2016 AFS Securities: Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises $ 1 $ — $ 33,618 $ (139 ) $ 33,619 $ (139 ) Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 1,930 (8 ) 94,005 (1,322 ) 95,935 (1,330 ) Total AFS securities $ 1,931 $ (8 ) $ 127,623 $ (1,461 ) $ 129,554 $ (1,469 ) HTM Securities: Obligations of states and political subdivisions $ 423 $ (3 ) $ — $ — $ 423 $ (3 ) Total HTM securities $ 423 $ (3 ) $ — $ — $ 423 $ (3 ) December 31, 2015 AFS Securities: Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises $ 234,897 $ (2,351 ) $ 45,629 $ (1,506 ) $ 280,526 $ (3,857 ) Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 111,143 (1,068 ) 147,180 (5,203 ) 258,323 (6,271 ) Subordinated corporate bonds 996 (4 ) — — 996 (4 ) Equity Securities 615 (9 ) — — 615 (9 ) Total AFS securities $ 347,651 $ (3,432 ) $ 192,809 $ (6,709 ) $ 540,460 $ (10,141 ) HTM Securities: Obligations of states and political subdivisions $ 5,507 $ (61 ) $ — $ — $ 5,507 $ (61 ) Total HTM securities $ 5,507 $ (61 ) $ — $ — $ 5,507 $ (61 ) At June 30, 2016 and December 31, 2015, the Company held 20 and 110 investment securities with a fair value of $130.0 million and $546.1 million with unrealized losses totaling $ 1.5 million and $10.2 million , respectively, that were considered temporary. Of these, the Company had 19 MBS and CMO investments with a fair value of $ 129.6 million that were in an unrealized loss position totaling $1.5 million at June 30, 2016 and 28 MBS and CMO investments with a fair value of $192.8 million that were in an unrealized loss position totaling $6.7 million at December 31, 2015 for 12 months or more. The unrealized loss was reflective of current interest rates in excess of the yield received on investments and is not indicative of an overall change in credit quality or other factors with the Company's investment portfolio. At June 30, 2016 and December 31, 2015, gross unrealized losses on the Company's AFS and HTM securities were 0% and 2% , respectively, of the respective investment securities fair value. The Company has the intent and ability to retain its investment securities in an unrealized loss position at June 30, 2016 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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Proceeds from sales of securities $ 84 $ — $ 84 $ — Gross realized gains 4 — 4 — Gross realized losses — — — — For the three and six months ended June 30, 2016 , the Company sold certain AFS securities with a total carrying value of $84,000 and recorded net gains on the sale of AFS securities of $4,000 within non-interest income in the consolidated statements of income. The Company had not previously recorded any OTTI on these securities sold. The Company did no t sell any securities during the three and six months ended June 30, 2015. The cost basis of securities sold is measured on a specific identification basis. FHLBB and FRB Stock As of June 30, 2016 and December 31, 2015 , the Company's investment in FHLBB stock was $23.5 million and $20.6 million , respectively. As of June 30, 2016 and December 31, 2015, the Company's investment in FRB stock was $5.4 million and $ 908,000 , respectively. Securities Pledged At June 30, 2016 and December 31, 2015 , securities with an amortized cost of $549.3 million and $577.6 million and estimated fair values of $555.9 million and $570.9 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 June 30, 2016 , 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 $ 1,430 $ 1,441 Due after one year through five years 107,452 109,501 Due after five years through ten years 101,018 104,203 Due after ten years 577,692 583,736 $ 787,592 $ 798,881 HTM Securities Due after one year through five years $ 2,189 $ 2,247 Due after five years through ten years 4,587 4,726 Due after ten years 86,833 90,719 $ 93,609 $ 97,692 |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 and December 31, 2015 was as follows: June 30, December 31, Residential real estate (1) $ 801,965 $ 821,074 Commercial real estate (1) 1,018,643 927,951 Commercial (1) 336,114 297,721 Home equity (1) 340,623 348,634 Consumer (1) 17,732 17,953 HPFC (1) 70,532 77,243 Deferred loan fees, net (309 ) (370 ) Total loans $ 2,585,300 $ 2,490,206 (1) The loan balances are presented net of the unamortized fair value mark discount associated with the purchase accounting for acquired loans of $10.4 million and $13.1 million at June 30, 2016 and December 31, 2015, respectively. The Bank’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 HPFC loan portfolio consists of niche commercial lending to the small business medical field, including dentists, optometrists and veterinarians across the U.S. The ability and willingness of borrowers to honor their repayment commitments is generally dependent on the success of the borrower's business. Unlike the Bank's loan portfolio, there is, generally, little to no indication of credit quality issues and/or concerns of borrowers honoring their commitments until a payment is delinquent. Generally, once a payment is delinquent, if the payment is not received shortly thereafter to bring the loan current, the loan is deemed impaired (typically within 45 days). Effective February 19, 2016, the Company closed HPFC's operations and is no longer originating loans. 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 six months ended June 30, 2016 . 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 Credit Risk Administration 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, consumer and HPFC. 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. HPFC. HPFC is a niche lender that provides commercial lending to dentists, optometrists and veterinarians, many of which are start-up companies. HPFC's loan portfolio consists of term loan obligations extended for the purpose of financing working capital and/or purchase of equipment. Collateral may consist of pledges of business assets including, but not limited to, accounts receivable, inventory, and/or equipment. These loans are primarily paid by the operating cash flow of the borrower and the terms range from seven to ten years. The following tables present the activity in the ALL and select loan information by portfolio segment for the three and six months ended June 30, 2016 and 2015, and for the year ended December 31, 2015: Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer HPFC Unallocated Total For The Three and Six Months Ended June 30, 2016 ALL for the three months ended: Beginning balance $ 4,516 $ 10,380 $ 3,298 $ 2,622 $ 182 $ 341 $ — $ 21,339 Loans charged off (19 ) (19 ) (203 ) (57 ) (26 ) (302 ) — (626 ) Recoveries 31 34 82 1 2 — — 150 Provision (credit) (1) (97 ) 1,164 1,381 380 35 (9 ) — 2,854 Ending balance $ 4,431 $ 11,559 $ 4,558 $ 2,946 $ 193 $ 30 $ — $ 23,717 ALL for the six months ended: Beginning balance $ 4,545 $ 10,432 $ 3,241 $ 2,731 $ 193 $ 24 $ — $ 21,166 Loans charged off (229 ) (241 ) (429 ) (185 ) (41 ) (302 ) — (1,427 ) Recoveries 71 43 134 2 4 — — 254 Provision (1) 44 1,325 1,612 398 37 308 — 3,724 Ending balance $ 4,431 $ 11,559 $ 4,558 $ 2,946 $ 193 $ 30 $ — $ 23,717 ALL balance attributable to loans: Individually evaluated for impairment $ 497 $ 29 $ 1,400 $ 89 $ — $ — $ — $ 2,015 Collectively evaluated for impairment 3,934 11,530 3,158 2,857 193 30 — 21,702 Total ending ALL $ 4,431 $ 11,559 $ 4,558 $ 2,946 $ 193 $ 30 $ — $ 23,717 Loans: Individually evaluated for impairment $ 4,926 $ 2,340 $ 3,461 $ 503 $ 7 $ — $ — $ 11,237 Collectively evaluated for impairment 795,630 1,015,437 333,056 341,478 17,811 70,651 — 2,574,063 Total ending loans balance $ 800,556 $ 1,017,777 $ 336,517 $ 341,981 $ 17,818 $ 70,651 $ — $ 2,585,300 For The Three and Six Months Ended June 30, 2015 ALL for the three months ended: Beginning balance $ 4,835 $ 8,234 $ 3,427 $ 2,247 $ 270 $ — $ 2,252 $ 21,265 Loans charged off (179 ) (48 ) (84 ) (152 ) (11 ) — — (474 ) Recoveries 17 54 78 — 3 — — 152 Provision (credit) (1) 16 (80 ) (106 ) 49 6 — 366 251 Ending balance $ 4,689 $ 8,160 $ 3,315 $ 2,144 $ 268 $ — $ 2,618 $ 21,194 ALL for the six months ended: Beginning balance $ 4,899 $ 7,951 $ 3,354 $ 2,247 $ 281 $ — $ 2,384 $ 21,116 Loans charged off (292 ) (103 ) (243 ) (241 ) (19 ) — — (898 ) Recoveries 20 64 182 5 14 — — 285 Provision (credit) (1) 62 248 22 133 (8 ) — 234 691 Ending balance $ 4,689 $ 8,160 $ 3,315 $ 2,144 $ 268 $ — $ 2,618 $ 21,194 ALL balance attributable to loans: Individually evaluated for impairment $ 724 $ 240 $ 136 $ 89 $ 78 $ — $ — $ 1,267 Collectively evaluated for impairment 3,965 7,920 3,179 2,055 190 — 2,618 19,927 Total ending ALL $ 4,689 $ 8,160 $ 3,315 $ 2,144 $ 268 $ — $ 2,618 $ 21,194 Loans: Individually evaluated for impairment $ 5,562 $ 3,034 $ 800 $ 986 $ 157 $ — $ — $ 10,539 Collectively evaluated for impairment 581,682 657,101 261,387 280,071 16,227 — — 1,796,468 Total ending loans balance $ 587,244 $ 660,135 $ 262,187 $ 281,057 $ 16,384 $ — $ — $ 1,807,007 Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer HPFC Unallocated Total For The Year Ended December 31, 2015 ALL: Beginning balance $ 4,899 $ 7,951 $ 3,354 $ 2,247 $ 281 $ — $ 2,384 $ 21,116 Loans charged off (801 ) (481 ) (655 ) (525 ) (154 ) — — (2,616 ) Recoveries 55 74 389 188 22 — — 728 Provision (credit) (1) 392 2,888 153 821 44 24 (2,384 ) 1,938 Ending balance $ 4,545 $ 10,432 $ 3,241 $ 2,731 $ 193 $ 24 $ — $ 21,166 ALL balance attributable to loans: Individually evaluated for impairment $ 544 $ 644 $ 92 $ 89 $ — $ — $ — $ 1,369 Collectively evaluated for impairment 4,001 9,788 3,149 2,642 193 24 — 19,797 Total ending ALL $ 4,545 $ 10,432 $ 3,241 $ 2,731 $ 193 $ 24 $ — $ 21,166 Loans: Individually evaluated for impairment $ 6,026 $ 4,610 $ 3,937 $ 588 $ 74 $ — $ — $ 15,235 Collectively evaluated for impairment 814,591 923,341 293,784 348,046 17,879 77,330 — 2,474,971 Total ending loans balance $ 820,617 $ 927,951 $ 297,721 $ 348,634 $ 17,953 $ 77,330 $ — $ 2,490,206 (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 June 30, 2016 and 2015, and December 31, 2015 , the reserve for unfunded commitments was $22,000 , $26,000 and $22,000 , respectively. The following table reconciles the three and six months ended June 30, 2016 and 2015, and year ended December 31, 2015 provision for loan losses to the provision for credit losses as presented on the consolidated statement of income: Three Months Ended June 30, Six Months Ended Year Ended December 31, 2016 2015 2016 2015 2015 Provision for loan losses $ 2,854 $ 251 $ 3,724 $ 691 $ 1,938 Change in reserve for unfunded commitments (2 ) 3 — 9 (2 ) Provision for credit losses $ 2,852 $ 254 $ 3,724 $ 700 $ 1,936 The provision for loan losses for the three and six months ended June 30, 2016 increased $2.6 million and $3.0 million , respectively, compared to the three and six months ended June 30, 2015. The increase was driven by (i) the increase in loans (excluding loans held for sale) of $778.3 million since June 30, 2015, of which $615.4 million the Company acquired as part of the SBM acquisition in the fourth quarter of 2015, as well as (ii) the deterioration of one commercial real estate and one commercial credit in the second quarter of 2016 accounting for $2.3 million of the provision for loan losses for the three and six months ended June 30, 2016. The Company placed the commercial real estate loan totaling $11.7 million on non-accrual status in the second quarter of 2016, and the commercial loan was previously on non-accrual status. The Company believes that the credit deterioration of these two credits were driven by specific facts and circumstances of the borrowers and does not represent a systemic issue across its commercial real estate or commercial loan portfolios. 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 Credit Risk Administration. As of June 30, 2016 , the non-residential building operators industry exposure was 12% of the Company's total loan portfolio and 30% of the total commercial real estate portfolio. There were no other industry exposures exceeding 10% of the Company's total loan portfolio as of June 30, 2016 . 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, residential real estate, and HPFC 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 HPFC Total June 30, 2016 Pass (Grades 1-6) $ 785,673 $ 957,457 $ 322,590 $ — $ — $ 68,497 $ 2,134,217 Performing — — — 340,370 17,814 — 358,184 Special Mention (Grade 7) 3,025 18,087 8,043 — — 302 29,457 Substandard (Grade 8) 11,858 42,233 5,884 — — 1,852 61,827 Non-performing — — — 1,611 4 — 1,615 Total $ 800,556 $ 1,017,777 $ 336,517 $ 341,981 $ 17,818 $ 70,651 $ 2,585,300 December 31, 2015 Pass (Grades 1-6) $ 802,873 $ 868,664 $ 281,553 $ — $ — $ 70,173 $ 2,023,263 Performing — — — 346,701 17,835 — 364,536 Special Mention (Grade 7) 3,282 20,732 7,527 — — 3,179 34,720 Substandard (Grade 8) 14,462 38,555 8,641 — — 3,978 65,636 Non-performing — — — 1,933 118 — 2,051 Total $ 820,617 $ 927,951 $ 297,721 $ 348,634 $ 17,953 $ 77,330 $ 2,490,206 The Company closely monitors the performance of its loan portfolio for both the Bank and HPFC. 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 return 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 June 30, 2016 Residential real estate $ 1,862 $ 456 $ 3,592 $ 5,910 $ 794,646 $ 800,556 $ — $ 4,697 Commercial real estate 1,519 12,516 1,726 15,761 1,002,016 1,017,777 — 13,752 Commercial 3,296 78 756 4,130 332,387 336,517 — 3,539 Home equity 941 161 1,289 2,391 339,590 341,981 — 1,611 Consumer 13 — 7 20 17,798 17,818 — 4 HPFC 687 188 222 1,097 69,554 70,651 112 110 Total $ 8,318 $ 13,399 $ 7,592 $ 29,309 $ 2,555,991 $ 2,585,300 $ 112 $ 23,713 December 31, 2015 Residential real estate $ 3,325 $ 571 $ 6,077 $ 9,973 $ 810,644 $ 820,617 $ — $ 7,253 Commercial real estate 4,219 2,427 1,584 8,230 919,721 927,951 — 4,529 Commercial 267 550 1,002 1,819 295,902 297,721 — 4,489 Home equity 643 640 1,505 2,788 345,846 348,634 — 1,933 Consumer 112 7 118 237 17,716 17,953 — 118 HPFC 165 — — 165 77,165 77,330 — — Total $ 8,731 $ 4,195 $ 10,286 $ 23,212 $ 2,466,994 $ 2,490,206 $ — $ 18,322 Interest income that would have been recognized if loans on non-accrual status had been current in accordance with their original terms was $240,000 , $424,000 , $129,000 and $272,000 for the three and six months ended June 30, 2016 and 2015 , 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 the periods indicated: Number of Contracts Recorded Investment Specific Reserve June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 Residential real estate 21 22 $ 3,273 $ 3,398 $ 497 $ 544 Commercial real estate 3 6 1,024 1,459 — 48 Commercial 7 9 316 399 — 11 Home equity 1 1 19 21 — — Total 32 38 $ 4,632 $ 5,277 $ 497 $ 603 At June 30, 2016 , the Company had performing and non-performing TDRs with a recorded investment balance of $4.5 million and $147,000 , respectively. At December 31, 2015, the Company had performing and non-performing TDRs with a recorded investment balance of $4.8 million and $446,000 , respectively. As of June 30, 2016 and December 31, 2015, the Company did no t have any commitments to lend additional funds to borrowers with loans classified as TDRs. There were no loan modifications that occurred during the six months ended June 30, 2016 or 2015 that qualify as TDRs. For the six months ended June 30, 2016 and 2015, 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 and TDR loans that are individually evaluated for impairment in accordance with the Company's policy. The following is a summary of impaired loan balances and the associated allowance by portfolio segment as of and for three and six months ended June 30, 2016 and 2015, and as of and for the year-ended December 31, 2015: Three Months Ended Six Months Ended Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Interest June 30 , 2016: With an allowance recorded: Residential real estate $ 3,067 $ 3,067 $ 497 $ 3,156 $ 25 $ 3,137 $ 52 Commercial real estate 99 99 29 1,256 — 847 — Commercial 2,744 2,744 1,400 239 — 633 — Home equity 303 303 89 303 — 309 — Consumer — — — — — (11 ) — HPFC — — — 256 — 128 — Ending balance 6,213 6,213 2,015 5,210 25 5,043 52 Without an allowance recorded: Residential real estate 1,859 2,347 — 3,071 4 2,547 4 Commercial real estate 2,241 2,765 — 2,655 23 2,475 25 Commercial 717 814 — 3,978 (3 ) 3,281 8 Home equity 200 387 — 220 (4 ) 178 — Consumer 7 10 — 7 — 18 — HPFC — — — — — — — Ending balance 5,024 6,323 — 9,931 20 8,499 37 Total impaired loans $ 11,237 $ 12,536 $ 2,015 $ 15,141 $ 45 $ 13,542 $ 89 June 30 , 2015: With an allowance recorded: Residential real estate $ 4,111 $ 4,111 $ 724 $ 4,298 $ 27 $ 4,187 $ 56 Commercial real estate 468 501 240 154 — 223 — Commercial 217 217 136 213 1 228 1 Home equity 303 303 89 50 — 101 — Consumer 140 140 78 140 — 140 — HPFC — — — — — — — Ending Balance 5,239 5,272 1,267 4,855 28 4,879 57 Without an allowance recorded: Residential real estate 1,451 1,865 — 1,663 2 1,553 4 Commercial real estate 2,566 2,656 — 2,769 27 2,437 35 Commercial 583 712 — 544 4 585 8 Home equity 683 927 — 474 — 644 — Consumer 17 37 — 17 — 17 — HPFC — — — — — — — Ending Balance 5,300 6,197 — 5,467 33 5,236 47 Total impaired loans $ 10,539 $ 11,469 $ 1,267 $ 10,322 $ 61 $ 10,115 $ 104 Year Ended Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2015: With an allowance recorded: Residential real estate $ 3,191 $ 3,191 $ 544 $ 6,064 $ 112 Commercial real estate 1,825 1,857 644 1,753 — Commercial 156 156 92 945 2 Home equity 303 303 89 900 — Consumer — — — 195 — HPFC — — — — — Ending Balance 5,475 5,507 1,369 9,857 114 Without an allowance recorded: Residential real estate 2,835 4,353 — 2,175 8 Commercial real estate 2,785 3,426 — 2,719 65 Commercial 3,781 4,325 — 1,412 17 Home equity 285 688 — 369 — Consumer 74 150 — 20 — HPFC — — — — — Ending Balance 9,760 12,942 — 6,695 90 Total impaired loans $ 15,235 $ 18,449 $ 1,369 $ 16,552 $ 204 The impaired loan information presented above as of June 30, 2015, and for the three and six months ended June 30, 2015 and year ended December 31, 2015, was revised to disclose only those impaired loans that are individually evaluated for impairment in accordance with the Company's policy, which includes (i) loans with a principal balance greater than $250,000 or more and are classified as substandard or doubtful and are on non-accrual status and (ii) all TDRs. Previously, the Company's impaired loan disclosures included certain non-accrual loans which were collectively evaluated under ASC 450-20. The revision of prior period information had no impact on the Company's ALL, provision for loan losses, or its asset quality ratios as of June 30, 2015, and for the three and six months ended June 30, 2015 and year ended December 31, 2015, Loan Sales: For the three and six months ended June 30, 2016 and 2015, the Company sold $56.3 million , $95.2 million , $7.7 million and $12.5 million , respectively, of fixed rate residential mortgage loans on the secondary market that resulted in gains on the sale of loans (net of costs) of $1.3 million , $2.2 million , $158,000 and $288,000 , respectively. At June 30, 2016 and December 31, 2015 , the Company had certain residential mortgage loans with a principal balance of $22.6 million and $10.8 million , respectively, designated as held for sale. The Company has elected the fair value option of accounting for its loans held for sale and for the three and six months ended June 30, 2016 and 2015 , the Company recorded within non-interest income on its consolidated statements of income the net change in unrealized gains of $147,000 , $153,000 , $12,000 and $18,000 , respectively. 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 June 30, 2016 , the Company had two residential and four commercial real estate properties with a carrying value of $80,000 and $775,000 , respectively, within OREO. At December 31, 2015 , the Company had two residential real estate properties and seven commercial properties with a carrying value of $241,000 and $1.0 million , respectively, within OREO. In-Process Foreclosure Proceedings: At June 30, 2016 and December 31, 2015 , the Company had $1.7 million and $2.9 million , respectively, of consumer mortgage loans secured by residential real estate properties for which foreclosure proceedings were in process, representing 27% and 32% , 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 $1.1 billion and $1.1 billion at June 30, 2016 and December 31, 2015 . Refer to Note 3 and 11 of the consolidated financial statements for discussion of securities pledged as collateral. |
SBM ACQUISITION
SBM ACQUISITION | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
MERGER AND ACQUISITION COSTS | NOTE 5 – SBM ACQUISITION On October 16, 2015, the Company completed its acquisition of SBM, as previously reported. For the six months ended June 30, 2016, the Company made certain measurement-period adjustments to its initial purchase accounting that decreased goodwill reported at December 31, 2015 by $960,000 . These measurement-period adjustments increased the previously reported loan balance by $137,000 , increased acquired interest receivable and other assets by $157,000 , and increased acquired deferred tax assets $666,000 . The measurement-period adjustments will no t have a material effect on current or future years' net income and were presented and disclosed prospectively as of June 30, 2016 in accordance with ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments . At June 30, 2016, the Company's accounting for the acquisition of SBM was completed. The following table summarizes the fair value of the assets acquired and liabilities assumed: As Acquired Fair Value Adjustments (Previously Reported) Measurement-Period Adjustments As Recorded at Acquisition Consideration Paid: Cash $ 26,125 Company common stock (2,749,762 shares at $39.48 per share) 108,561 Non-qualified stock options 1,990 Total consideration paid 136,676 Recognized identifiable assets acquired and liabilities assumed, at fair value: Loans and loans held for sale $ 639,390 $ (11,497 ) $ 137 628,030 Cash and due from banks 86,042 — — 86,042 Investments 39,716 26 — 39,742 Deferred tax assets 26,293 (1,177 ) 666 25,782 Premises and equipment 16,851 7,093 — 23,944 OREO 2,530 (1,801 ) — 729 Core deposit intangible assets — 6,608 — 6,608 Other assets 5,421 (170 ) 157 5,408 Deposits and borrowings 719,640 1,546 — 721,186 Other liabilities 8,512 (198 ) — 8,314 Total identified assets acquired and liabilities assumed, at fair value $ 88,091 $ (2,266 ) $ 960 86,785 Goodwill $ 49,891 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSESTS | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 and December 31, 2015 for each reporting unit is shown in the table below: Goodwill Banking Financial Services Total December 31, 2015: Goodwill, gross $ 91,753 $ 7,474 $ 99,227 Accumulated impairment losses — (3,570 ) (3,570 ) Reported goodwill at December 31, 2015 91,753 3,904 95,657 2016 measurement-period adjustments (960 ) — (960 ) Reported goodwill at June 30, 2016 $ 90,793 $ 3,904 $ 94,697 Refer to Note 5 of the consolidated financial statements for further detail and discussion of the measurement-period adjustments recorded for the six months ended June 30, 2016 pertaining to the SBM acquisition. The changes in core deposit and trust relationship intangible assets for the six months ended June 30, 2016 are shown in the table below: Core Deposit Intangible Trust Relationship Intangible Total Accumulated Amortization Net Total Accumulated Amortization Net Balance at December 31, 2015 $ 23,908 $ (15,392 ) $ 8,516 $ 753 $ (602 ) $ 151 2016 amortization — (914 ) (914 ) — (38 ) (38 ) Balance at June 30, 2016 $ 23,908 $ (16,306 ) $ 7,602 $ 753 $ (640 ) $ 113 Total carrying value of other intangible assets at December 31, 2015 $ 8,667 Total carrying value of other intangible assets at June 30, 2016 $ 7,715 The following table reflects the expected amortization schedule for intangible assets over the period of estimated economic benefit (assuming no additional intangible assets are created or impaired): Core Deposit Intangible Trust Relationship Intangible Total 2016 $ 914 $ 37 $ 951 2017 1,735 76 1,811 2018 725 — 725 2019 705 — 705 2020 682 — 682 Thereafter 2,841 — 2,841 Total $ 7,602 $ 113 $ 7,715 |
REGULATORY CAPITAL
REGULATORY CAPITAL | 6 Months Ended |
Jun. 30, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital Requirements under Banking Regulations | REGULATORY CAPITAL REQUIREMENTS The Company and the 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. The Company and the Bank are required to maintain certain levels of capital based on risk-adjusted assets. These capital requirements represent quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company and the Bank's capital classification is also subject to qualitative judgments by our regulators about components, risk weightings and other factors. 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 to risk-weighted assets, and of Tier I capital to average assets, or leverage ratio. 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 order to be "adequately capitalized." In addition to these requirements, banking organizations 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. Effective January 1, 2016, the Company and the Bank were required to establish a capital conservation buffer of 0.625% , increasing the minimum required total risk-based capital, Tier I risk-based and common equity Tier I capital to risk-weighted assets they must maintain to avoid limits on capital distributions and certain bonus payments to executive officers and similar employees. The Company and the Bank's risk-based capital ratios exceeded regulatory guidelines at June 30, 2016 and December 31, 2015 . The following table presents the Company and Bank's regulatory capital ratios at the periods indicated: June 30, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer Minimum Regulatory Provision To Be "Well Capitalized" Under Prompt Corrective Action Provisions December 31, Minimum Regulatory Capital Required for Capital Adequacy Minimum Regulatory Provision To Be "Well Capitalized" Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Camden National Corporation: Total risk-based capital ratio $ 351,791 12.94 % 8.63 % N/A $ 335,740 12.98 % 8.00 % N/A Tier I risk-based capital ratio 313,052 11.51 % 6.63 % N/A 299,552 11.58 % 6.00 % N/A Common equity Tier I risk-based capital ratio 278,673 10.25 % 5.13 % N/A 269,350 10.42 % 4.50 % N/A Tier I leverage capital ratio 313,052 8.44 % 4.00 % N/A 299,552 8.74 % 4.00 % N/A Camden National Bank: Total risk-based capital ratio $ 317,484 11.64 % 8.63 % 10.00 % $ 304,847 11.75 % 8.00 % 10.00 % Tier I risk-based capital ratio 293,745 10.77 % 6.63 % 8.00 % 283,659 10.93 % 6.00 % 8.00 % Common equity Tier I risk-based capital ratio 293,745 10.77 % 5.13 % 6.50 % 283,659 10.93 % 4.50 % 6.50 % Tier I leverage capital ratio 293,745 7.98 % 4.00 % 5.00 % 283,659 8.33 % 4.00 % 5.00 % In addition, the OCC requires a minimum level of $2.5 million of Tier I capital to be maintained at Acadia Trust. As of June 30, 2016 and December 31, 2015 , Acadia Trust met all of its capital requirements. On October 8, 2015, the Company issued $15.0 million of 10 year subordinated debentures bearing interest at an annual rate of 5.50% . In addition, $43.0 million of junior subordinated debentures were issued in connection with the issuance of trust preferred securities in 2006 and 2008. Although the subordinated debentures and the junior subordinated debentures are recorded as liabilities on the Company's consolidated statements of condition, the Company is permitted, in accordance with regulatory guidelines, to include, subject to certain limits, each within its calculation of risk-based capital. At June 30, 2016 and December 31, 2015 , $15.0 million of subordinated debentures were included as Tier II capital and were included in the calculation of the Company's total risk-based capital, and, at June 30, 2016 and December 31, 2015, $43.0 million of the junior subordinated debentures were included in Tier I and total risk-based capital for the Company. |
INCOME TAXES (Notes)
INCOME TAXES (Notes) | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES The Company's effective income tax rate for the three and six months ended June 30, 2016 and 2015 was as follows: Three Months Ended Six Months Ended 2016 2015 2016 2015 Income tax expense $ 4,258 $ 3,341 $ 7,700 $ 6,064 Income before income taxes $ 13,874 $ 10,534 $ 25,962 $ 18,868 Effective tax rate 30.7 % 31.7 % 29.7 % 32.1 % For the three and six months ended June 30, 2016, the Company had the following discrete period items impacting its effective tax rate: • In the second quarter of 2016, the Company adopted ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 was adopted effective as of January 1, 2016. Prior to the adoption of ASU 2016-09, the Company accounted for its windfall tax benefits or shortfalls generated upon exercise of a non-qualified stock option or a disqualifying incentive stock option, or upon vesting of its restricted shares through shareholders' equity (or as income tax expense to the extent the Company did not have a windfall tax benefit surplus). Upon adoption, the Company has accounted for its windfall tax benefits and shortfalls generated within income tax expense on the consolidated statements of income as a discrete period item in the quarter generated. For the three and six months ended June 30, 2016, the Company recorded net windfall tax benefits of $65,000 and $364,000 , respectively, reducing the Company's effective tax rate and increasing net income for the respective periods. • For the three and six months ended June 30, 2016, the Company received death benefits from its BOLI policy from one of its insureds totaling $578,000 , of which $394,000 was recognized as income on the consolidated statements of income within bank-owned life insurance. The income recognized was non-taxable reducing the Company's effective tax rate for the three and six months ended June 30, 2016. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 and 2015 were as follows: Supplemental Executive Retirement Plan: Three Months Ended Six Months Ended June 30, Net periodic benefit cost 2016 2015 2016 2015 Service cost $ 77 $ 77 $ 154 $ 154 Interest cost 108 106 216 212 Recognized net actuarial loss 55 54 110 108 Recognized prior service cost 2 5 4 10 Net period benefit cost (1) $ 242 $ 242 $ 484 $ 484 (1) Presented within the consolidated statements of income within salaries and employee benefits. Other Postretirement Benefit Plan: Three Months Ended June 30, Six Months Ended June 30, Net periodic benefit cost 2016 2015 2016 2015 Service cost $ 15 $ 15 $ 30 $ 30 Interest cost 38 29 76 58 Recognized net actuarial loss 8 6 16 12 Amortization of prior service credit (6 ) (6 ) (12 ) (12 ) Net period benefit cost (1) $ 55 $ 44 $ 110 $ 88 (1) Presented within the consolidated statements of income within salaries and employee benefits. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION PLANS | STOCK-BASED COMPENSATION PLANS For the six months ended June 30, 2016 , 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 six months ended June 30, 2016 : • 5,793 restricted stock awards were granted to executive officers under the 2016-2018 LTIP, at a fair value of $43.30 per share, based on the closing market price of the Company's common stock on January 4, 2016. The restricted stock awards vest pro-rata over a three year period. The holders of the restricted stock awards participate fully in the rewards of stock ownership of the Company, including voting and dividend rights. • A total of 7,165 restricted stock awards and restricted stock units were granted at a fair value of $40.80 per share, based on the closing market price of the Company’s common stock on the March 17, 2016 grant date. The restricted stock awards vest pro-rata over a five -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. • 10,676 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 February 23, 2016 grant date of $38.11 ( 6,954 shares) and the March 17, 2016 grant date of $40.80 ( 3,722 shares), in lieu of the officers and executive officers annual incentive bonus. The shares fully vest after two years of service from the grant date. • 2,730 deferred stock awards were issued to certain executive officers under the DCRP. Of the 2,730 awards granted, 1,161 vested immediately on the grant date, the remainder will vest pro-rata until the recipient reaches age 65 . The stock awards have been determined to have a fair value of $40.55 per unit, based on the closing market price of the Company's common stock on the March 15, 2016 grant date. • 4,876 unrestricted stock awards were issued to the directors of the Company and the Bank under the Independent Directors' Equity Compensation Program. The unrestricted stock awards fully vested immediately on the May 1, 2016 grant date. The fair value of the share awards issued was determined using the closing price of the Company's stock on April 29, 2016 of $43.51 per share. |
REPURCHASE AGREEMENTS
REPURCHASE AGREEMENTS | 6 Months Ended |
Jun. 30, 2016 | |
Banking and Thrift [Abstract] | |
REPURCHASE AGREEMENTS | 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 as of June 30, 2016 and December 31, 2015: Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30 - 90 Days Greater than 90 Days Total June 30, 2016: Customer Repurchase Agreements: Obligations of states and political subdivisions $ 570 $ — $ — $ — $ 570 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 98,398 — — — 98,398 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 83,581 — — — 83,581 Total Customer Repurchase Agreements 182,549 — — — 182,549 Wholesale Repurchase Agreements: Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises — — 18,492 3,721 22,213 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises — — 6,508 1,309 7,817 Total Wholesale Repurchase Agreements — — 25,000 5,030 30,030 Total Repurchase Agreements (1) $ 182,549 $ — $ 25,000 $ 5,030 $ 212,579 December 31, 2015: Customer Repurchase Agreements: Obligations of states and political subdivisions $ 556 $ — $ — $ — $ 556 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 95,967 — — — 95,967 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 88,466 — — — 88,466 Total Customer Repurchase Agreements 184,989 — — — 184,989 Wholesale Repurchase Agreements: Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises — — — 22,016 22,016 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises — — — 8,036 8,036 Total Wholesale Repurchase Agreements — — — 30,052 30,052 Total Repurchase Agreements (1) $ 184,989 $ — $ — $ 30,052 $ 215,041 (1) Total repurchase agreements are presented within other borrowed funds on the consolidated statements of condition. Certain customers held CDs totaling $915,000 and $914,000 with the Bank at June 30, 2016 and December 31, 2015 , respectively, that were collateralized by CMO and MBS securities that were overnight repurchase agreements. Certain counterparties monitor collateral, and may request additional collateral to be posted from time to time. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 6 Months Ended |
Jun. 30, 2016 | |
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. The fair value of equity AFS securities is reported utilizing market prices based on recent trading activity. The equity securities are traded on inactive markets and 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 June 30, 2016 and December 31, 2015 , 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 fair value of interest rate lock commitments is determined based on current market prices for similar assets in the secondary market and, therefore, classified as Level 2 within the fair value hierarchy. The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 , 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) June 30, 2016 Financial assets: Loans held for sale $ 22,928 $ — $ 22,928 $ — AFS securities: Obligations of U.S. government-sponsored enterprises 5,131 — 5,131 — Obligations of states and political subdivisions 10,044 — 10,044 — Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 470,471 — 470,471 — Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 307,612 — 307,612 — Subordinated corporate bonds 5,623 — 5,623 — Equity securities 645 — 645 — Customer loan swaps 15,001 — 15,001 — Interest rate lock commitments 523 — 523 — Financial liabilities: Junior subordinated debt interest rate swaps 13,265 — 13,265 — FHLBB advance interest rate swaps 1,172 — 1,172 — Customer loan swaps 15,001 — 15,001 — December 31, 2015 Financial assets: Loans held for sale $ 10,958 $ — $ 10,958 $ — AFS securities: Obligations of U.S. government-sponsored enterprises 5,040 — 5,040 — Obligations of states and political subdivisions 17,694 — 17,694 — Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 419,046 — 419,046 — Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 306,857 — 306,857 — Subordinated corporate bonds 996 — 996 — Equity securities 705 — 705 — Customer loan swaps 3,166 — 3,166 — Interest rate lock commitments 139 — 139 — Financial liabilities: Junior subordinated debt interest rate swaps 9,229 — 9,229 — FHLBB advance interest rate swaps 576 — 576 — Customer loan swaps 3,166 — 3,166 — The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during the six months ended June 30, 2016 . 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 for the six months ended June 30, 2016 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, then 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 for the six months ended June 30, 2016 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 June 30, 2016 and December 31, 2015 . Fair Value Readily Available Market Prices (Level 1) Observable Market Data (Level 2) Company Determined Fair Value (Level 3) June 30, 2016 Financial assets: Collateral-dependent impaired loans $ 522 $ — $ — $ 522 MSRs (1) 1,369 — 1,369 — Non-financial assets: OREO 855 — — 855 December 31, 2015 Financial assets: Collateral-dependent impaired loans $ 1,971 $ — $ — $ 1,971 MSRs (1) 440 — 440 — Non-financial assets: OREO 1,304 — — 1,304 (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 June 30, 2016 and December 31, 2015 : Fair Value Valuation Methodology Unobservable input Discount Range (Weighted-Average) June 30, 2016 Collateral-dependent impaired loans: Partially charged-off $ 150 Market approach appraisal of collateral Management adjustment of appraisal 0% (0%) Estimated selling costs 0 - 10% (4%) Specifically reserved 372 Market approach appraisal of collateral Management adjustment of appraisal 0 - 50% (16%) Estimated selling costs 10% (10%) OREO 855 Market approach appraisal of collateral Management adjustment of appraisal 0 - 73% (10%) Estimated selling cost 10% (10%) December 31, 2015 Collateral-dependent impaired loans: Partially charged-off $ 399 Market approach appraisal of collateral Management adjustment 0% (0%) Estimated selling costs 0 - 10% (7%) Specifically reserved 1,572 Market approach appraisal of collateral Management adjustment 0 - 57% (45%) Estimated selling costs 10% (10%) OREO 1,304 Market approach appraisal of collateral Management adjustment 0 - 43% (18%) Estimated selling costs 10% (10%) 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 demand, interest checking, savings and money market deposits is determined as the amount payable on demand at the reporting date. The fair value of time deposits is estimated by discounting the estimated future cash flows using market rates offered for deposits of similar remaining maturities. 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. Subordinated Debentures : The fair values of are based on quoted prices from similar instruments in inactive markets. The following table presents the carrying amounts and estimated fair value for financial instrument assets and liabilities measured at June 30, 2016 : 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 $ 96,443 $ 96,443 $ 96,443 $ — $ — AFS securities 799,526 799,526 — 799,526 — HTM securities 93,609 97,692 — 97,692 — Loans held for sale 22,928 22,928 — 22,928 — Residential real estate loans (1) 796,125 815,775 — — 815,775 Commercial real estate loans (1) 1,006,218 993,814 — — 993,814 Commercial loans (1)(2) 402,580 405,395 — — 405,395 Home equity loans (1) 339,035 339,449 — — 339,449 Consumer loans (1) 17,625 18,767 — — 18,767 MSRs (3) 1,410 1,864 — 1,864 — Interest receivable 8,757 8,757 — 8,757 — Customer loan swaps 15,001 15,001 — 15,001 — Interest rate lock commitments 523 523 — 523 — Financial liabilities: Deposits $ 2,773,487 $ 2,776,511 $ — $ 2,776,511 $ — FHLB advances 45,000 45,943 — 45,943 — Commercial repurchase agreements 30,030 30,909 — 30,909 — Other borrowed funds 556,769 558,059 558,059 — Subordinated debentures 58,677 40,800 — 40,800 — Interest payable 643 643 — 643 — Junior subordinated debt interest rate swaps 13,265 13,265 — 13,265 — FHLBB advance interest rate swaps 1,172 1,172 — 1,172 — Customer loan swaps 15,001 15,001 — 15,001 — (1) The presented carrying amount is net of the allocated ALL. (2) Includes the HPFC loan portfolio. (3) 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, 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 $ 79,488 $ 79,488 $ 79,488 $ — $ — AFS securities 750,338 750,338 — 750,338 — HTM securities 84,144 85,647 — 85,647 — Loans held for sale 10,958 10,958 — 10,958 — Residential real estate loans (1) 808,180 820,774 — — 820,774 Commercial real estate loans (1) 922,257 911,316 — — 911,316 Commercial loans (1)(2) 371,684 371,854 — — 371,854 Home equity loans (1) 349,215 348,963 — — 348,963 Consumer loans (1) 17,704 18,163 — — 18,163 MSRs (3) 2,161 2,947 — 2,947 — Interest receivable 7,985 7,985 — 7,985 — Customer loan swaps 3,166 3,166 — 3,166 — Interest rate lock commitments 139 139 — 139 — Financial liabilities: Deposits $ 2,726,379 $ 2,726,300 $ — $ 2,726,300 $ — FHLB advances 55,000 56,001 — 56,001 — Commercial repurchase agreements 30,052 30,931 — 30,931 — Other borrowed funds 428,711 428,778 — 428,778 — Subordinated debentures 58,599 42,950 — 42,950 — Interest payable 641 641 — 641 — Junior subordinated debt interest rate swaps 9,229 9,229 — 9,229 — FHLBB advance interest rate swaps 576 576 — 576 — Customer loan swaps 3,166 3,166 — 3,166 — (1) The presented carrying amount is net of the allocated ALL. (2) Includes the HPFC loan portfolio. (3) Reported fair value represents all MSRs currently being serviced by the Company, regardless of carrying amount. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS, CONTINGENCIES AND DERIVATIVES 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 June 30, 2016 and December 31, 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: June 30, December 31, Lending-Related Instruments: Loan origination commitments and unadvanced lines of credit: Home equity $ 464,991 $ 464,701 Commercial and commercial real estate 52,268 94,791 Residential 28,809 16,256 Letters of credit 3,009 4,468 Other commitments 442 433 Derivative Financial Instruments: Customer loan swaps $ 464,514 $ 285,888 FHLBB advance interest rate swaps 50,000 50,000 Junior subordinated debt interest rate swaps 43,000 43,000 Interest rate lock commitments 49,113 20,735 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. Additionally, as part of Company's normal mortgage origination process, it provides the borrower with the option to lock their interest rate based on current market prices. During the period from commitment date to the loan closing date, the Company is subject to the risk of interest rate change. In an effort to mitigate such risk the Company may enter into forward delivery sales commitments, typically on a "best-efforts" basis, with certain approved investors. Derivative instruments are carried at fair value in the Company’s financial statements. The accounting for changes in the fair value of a derivative instrument is dependent upon whether or not it qualifies and has been designated as a hedge for accounting purposes, and further, by the type of hedging relationship. The Company has designated its interest rate swaps on its junior subordinated debentures and its interest rate swaps on forecasted 30-day FHLBB borrowings as cash flow hedges. The change in the fair value of the Company's cash flow hedges is accounted within OCI, net of tax. Quarterly, in conjunction with financial reporting, the Company assesses each cash flow hedge for ineffectiveness. To the extent any significant ineffectiveness is identified, this amount is recorded within the consolidated statements of income. Furthermore, the Company will reclassify the gain or loss on the effective portion of the cash flow hedge from OCI into interest within the consolidated statements of income in the period the hedged transaction affects earnings. The change in fair value of the Company's other derivative instruments, not designated and qualifying as hedges, are accounted for within the consolidated statements of income. Junior Subordinated Debt Interest Rate Swaps: The Company, from time to time, will enter into an interest rate swap agreement with a counterparty to manage interest rate risk associated with its variable rate borrowings. 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. If the interest rate swaps are in a net asset position based on their fair value, the counterparty is required to post collateral to the Company. The collateral posted by the Company (or counterparty) is not readily available and has been presented within cash and due from banks on the consolidated statements of condition. At June 30, 2016 and December 31, 2015, the Company had a notional amount of $43.0 million in variable-for-fixed interest rate swap agreements on its junior subordinated debentures and $13.8 million of cash as collateral to the counterparty at June 30, 2016 . The details of the interest rate swap agreements are as follows: June 30, December 31, 2015 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% $ (1,354 ) $ (1,038 ) 10,000 7/8/2009 6/30/2029 3-Month USD LIBOR 5.84% (3,583 ) (2,537 ) 10,000 5/6/2010 6/30/2030 3-Month USD LIBOR 5.71% (3,604 ) (2,477 ) 5,000 3/14/2011 3/30/2031 3-Month USD LIBOR 4.35% (1,893 ) (1,301 ) 8,000 5/4/2011 7/7/2031 3-Month USD LIBOR 4.14% (2,831 ) (1,876 ) $ 43,000 $ (13,265 ) $ (9,229 ) (1) Presented within accrued interest and other liabilities on the consolidated statements of condition. For the three and six months ended June 30, 2016 or 2015, the Company did no t record any ineffectiveness on these cash flow hedges within the consolidated statements of income. Net payments to the counterparty for the six months ended June 30, 2016 and 2015 were $782,000 and $501,000 and have been classified as cash flows from operating activities in the consolidated statements of cash flows. FHLBB Advance Interest Rate Swaps: The Bank has two interest rate swap arrangements with a counterparty on two tranches of 30-day FHLBB advances with a total notional amount of $50.0 million . Each derivative arrangement commenced 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 interest rate swaps to mitigate its interest rate exposure on borrowings in a rising interest rate environment. The Bank has designated each arrangement as a cash flow 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 six months ended June 30, 2016 , 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. If the interest rate swaps are in a net asset position based on their fair value, the counterparty is required to post collateral to the Company. The collateral posted by the Company (or counterparty) is not readily available and is presented within cash and due from banks on the consolidated statements of condition. At June 30, 2016 , the Bank posted cash collateral with the counterparty of $1.2 million to the counterparty. The details of the interest rate swap agreements are as follows: June 30, December 31, 2015 Notional Trade Maturity Date Variable Index Fixed Rate Fair Value (1) Fair Value (1) $ 25,000 2/25/2015 2/25/2018 1-Month USD LIBOR 1.54% $ (421 ) $ (230 ) 25,000 2/25/2015 2/25/2019 1-Month USD LIBOR 1.74% (751 ) (346 ) $ 50,000 $ (1,172 ) $ (576 ) (1) Presented within accrued interest and other liabilities on the consolidated statements of condition. Net payments to the counterparty for the six months ended June 30, 2016 were $205,000 and have been classified as cash flows from operating activities in the consolidated statements of cash flows. 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. 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 following table presents the total positions, notional and fair value of the Company's customer loans swaps with its commercial customers and the corresponding interest rate swap agreements with counterparty for the periods indicated: June 30, 2016 December 31, 2015 Number of Positions Notional Fair Value Number of Positions Notional Fair Value Receive fixed, pay variable (1) 44 $ 232,257 $ 15,001 28 $ 142,944 $ 3,166 Pay fixed, received variable (2) 44 232,257 (15,001 ) 28 142,944 (3,166 ) (1) Presented within other assets on the consolidated statements of condition. (2) Presented within accrued interest and other liabilities on the consolidated statements of condition. 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 collateral for contracts in a net liability position based on their fair values and the Bank's credit rating or receive collateral for contracts in a net asset position. At June 30, 2016 , the Company posted cash collateral with the counterparty of $15.5 million . The collateral posted by the Company (or counterparty) is not readily available and is presented within cash and due from banks on the consolidated statements of condition. Interest Rate Locks Commitments: As part of originating residential and commercial loans, the Company may enter into rate lock agreements with customers and may issue commitment letters to customers, which are considered interest rate lock commitments. At June 30, 2016 and December 31, 2015 , our pipeline of mortgage loans with interest rate lock commitments were as follows: June 30, 2016 December 31, 2015 Notional Fair Value Notional Fair Value Mortgage interest rate locks (1) $ 49,113 $ 523 $ 20,735 $ 139 (1) Presented within other assets on the consolidated statements of condition. For the three months ended June 30, 2016 and 2015, the unrealized gains from the change in fair value on the Company's mortgage interest rate locks reported within mortgage banking income, net, on the consolidated statements of income were $92,000 and $18,000 , respectively. For the six months ended June 30, 2016 and 2015, the unrealized gains from the change in fair value on the Company's mortgage interest rate locks were $384,000 and $14,000 , respectively. The table below presents the effect of the Company’s derivative financial instruments included in OCI and current earnings for the periods indicated: For The Three Months Ended June 30, For The 2016 2015 2016 2015 Derivatives designated as cash flow hedges Net change in unrealized losses on cash flow hedging derivatives, net of tax (effective portion) $ (905 ) $ 1,694 $ (3,010 ) $ 522 Net reclassification adjustment for effective portion of cash flow hedges included in interest expense (effective portion), gross $ (622 ) $ (158 ) $ (987 ) $ (501 ) The Company expects approximately $2.1 million (pre-tax) to be reclassified to interest expense from OCI, related to the Company’s cash flow hedges, in the next twelve months. This reclassification is due to anticipated payments that will be made and/or received on the swaps based upon the forward curve as of June 30, 2016 . |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In the second quarter of 2016, the Company elected to early adopt ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , issued by the FASB in March 2016 . The Company applied the provisions of the ASU effective as of January 1, 2016, and, as such, previously reported balances on the Company's consolidated statements of income for the three months ended March 31, 2016 were updated to account for the ASU adoption as follows: Three Months Ended March 31, 2016 As Previously Reported As Adjusted Change Net income $ 8,334 $ 8,646 $ 312 Basic EPS $ 0.81 $ 0.84 $ 0.03 Diluted EPS $ 0.81 $ 0.84 $ 0.03 Two of the more significant provisions of the ASU that impacted the Company's consolidated financial statements were (i) the accounting for windfall tax benefits or shortfalls within income tax expense as a discrete period item in the quarter the event occurred and (ii) a policy election to not estimate the forfeiture rate on unvested share-based compensation awards. As a result of the ASU adoption in the second quarter of 2016, net income for the three and six months ended June 30, 2016 increased $50,000 and $362,000 , respectively. Basic and diluted EPS both increased $ 0.03 per share for the six months ended June 30, 2016 upon adoption of the ASU, while for the three months ended June 30, 2016 there was no change to basic or diluted EPS. In accordance with the ASU, the Company applied the provisions to account for windfall tax benefits or shortfalls within income tax expense on a prospective basis as of January 1, 2016. In accordance with the ASU, the Company applied its policy election to not estimate the forfeiture rate on unvested share-based compensation awards on a modified-retrospective basis. The impact of such resulted in a reclassification of $72,000 from retained earnings to common stock shown as a cumulative effect adjustment on the consolidated statements of changes in shareholders' equity. The other provisions of the ASU did no t have a material effect on the Company's 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 January 2016, the FASB issued ASU No. 2016-01, Income Statement - Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities. The ASU was issued to enhance the reporting model for financial instruments to provide the users of financial statements with more useful information for decisions. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted for only one of the six amendments, otherwise it is not permitted. The Company is evaluating the potential impact of the ASU on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The ASU was issued to increase transparency and comparability among organizations by recognizing lease assets and liabilities (including operating leases) on the balance sheet and disclosing key information about leasing arrangements. Current lease accounting does not require the inclusion of operating leases in the balance sheet. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, early application is permitted. The Company expects the ASU will have a material effect on its consolidated financial statements and is currently evaluating the impact. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU was issued to require timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years, for public companies. Early adoption is permitted for annual periods beginning after December 15, 2018, including interim periods within that fiscal year. The Company is evaluating the potential impact of the ASU; however, anticipates that it will have a material impact on its consolidated financial statements. |
SUBSEQUENT EVENTS (Notes)
SUBSEQUENT EVENTS (Notes) | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS The Company announced in July 2016 that it will be closing two banking centers in Bangor and Orono, Maine, subject to the regulatory notice periods. The Company anticipates that the closings will occur in the fourth quarter of 2016. The Company does no t anticipate that the closing of the two banking centers will materially affect the Company's financial condition. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 Six Months Ended 2016 2015 2016 2015 Net income $ 9,616 $ 7,193 $ 18,262 $ 12,804 Dividends and undistributed earnings allocated to participating securities (1) (49 ) (23 ) (81 ) (40 ) Net income available to common shareholders $ 9,567 $ 7,170 $ 18,181 $ 12,764 Weighted-average common shares outstanding for basic EPS 10,276,876 7,446,156 10,268,440 7,438,626 Dilutive effect of stock-based awards (2) 50,498 21,209 46,805 20,838 Weighted-average common and potential common shares for diluted EPS 10,327,374 7,467,365 10,315,245 7,459,464 Earnings per common share: Basic EPS $ 0.93 $ 0.97 $ 1.77 $ 1.72 Diluted EPS $ 0.92 $ 0.96 $ 1.76 $ 1.71 Awards excluded from the calculation of diluted EPS (3) : Stock options 12,250 15,250 12,250 15,250 (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 and are considered anti-dilutive. |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Gain (Loss) on Investments [Line Items] | |
Gain (Loss) on Investments [Table Text Block] | The following table details the Company’s sales of AFS securities for the period indicated below: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Proceeds from sales of securities $ 84 $ — $ 84 $ — Gross realized gains 4 — 4 — Gross realized losses — — — — |
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 June 30, 2016 AFS Securities: Obligations of U.S. government-sponsored enterprises $ 4,975 $ 156 $ — $ 5,131 Obligations of states and political subdivisions 9,765 279 — 10,044 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 461,493 9,117 (139 ) 470,471 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 305,878 3,064 (1,330 ) 307,612 Subordinated corporate bonds 5,481 142 — 5,623 Total AFS debt securities 787,592 12,758 (1,469 ) 798,881 Equity securities 632 13 — 645 Total AFS securities $ 788,224 $ 12,771 $ (1,469 ) $ 799,526 HTM Securities: Obligations of states and political subdivisions $ 93,609 $ 4,086 $ (3 ) $ 97,692 Total HTM securities $ 93,609 $ 4,086 $ (3 ) $ 97,692 December 31, 2015 AFS Securities: Obligations of U.S. government-sponsored enterprises $ 4,971 $ 69 $ — $ 5,040 Obligations of states and political subdivisions 17,355 339 — 17,694 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 419,429 3,474 (3,857 ) 419,046 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 312,719 409 (6,271 ) 306,857 Subordinated corporate bonds 1,000 — (4 ) 996 Total AFS debt securities 755,474 4,291 (10,132 ) 749,633 Equity securities 712 2 (9 ) 705 Total AFS securities $ 756,186 $ 4,293 $ (10,141 ) $ 750,338 HTM Securities: Obligations of states and political subdivisions $ 84,144 $ 1,564 $ (61 ) $ 85,647 Total HTM securities $ 84,144 $ 1,564 $ (61 ) $ 85,647 |
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 June 30, 2016 and December 31, 2015 , 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 June 30, 2016 AFS Securities: Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises $ 1 $ — $ 33,618 $ (139 ) $ 33,619 $ (139 ) Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 1,930 (8 ) 94,005 (1,322 ) 95,935 (1,330 ) Total AFS securities $ 1,931 $ (8 ) $ 127,623 $ (1,461 ) $ 129,554 $ (1,469 ) HTM Securities: Obligations of states and political subdivisions $ 423 $ (3 ) $ — $ — $ 423 $ (3 ) Total HTM securities $ 423 $ (3 ) $ — $ — $ 423 $ (3 ) December 31, 2015 AFS Securities: Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises $ 234,897 $ (2,351 ) $ 45,629 $ (1,506 ) $ 280,526 $ (3,857 ) Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 111,143 (1,068 ) 147,180 (5,203 ) 258,323 (6,271 ) Subordinated corporate bonds 996 (4 ) — — 996 (4 ) Equity Securities 615 (9 ) — — 615 (9 ) Total AFS securities $ 347,651 $ (3,432 ) $ 192,809 $ (6,709 ) $ 540,460 $ (10,141 ) HTM Securities: Obligations of states and political subdivisions $ 5,507 $ (61 ) $ — $ — $ 5,507 $ (61 ) Total HTM securities $ 5,507 $ (61 ) $ — $ — $ 5,507 $ (61 ) |
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 June 30, 2016 , 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 $ 1,430 $ 1,441 Due after one year through five years 107,452 109,501 Due after five years through ten years 101,018 104,203 Due after ten years 577,692 583,736 $ 787,592 $ 798,881 HTM Securities Due after one year through five years $ 2,189 $ 2,247 Due after five years through ten years 4,587 4,726 Due after ten years 86,833 90,719 $ 93,609 $ 97,692 |
LOANS AND ALLOWANCE FOR LOAN 27
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 and December 31, 2015 was as follows: June 30, December 31, Residential real estate (1) $ 801,965 $ 821,074 Commercial real estate (1) 1,018,643 927,951 Commercial (1) 336,114 297,721 Home equity (1) 340,623 348,634 Consumer (1) 17,732 17,953 HPFC (1) 70,532 77,243 Deferred loan fees, net (309 ) (370 ) Total loans $ 2,585,300 $ 2,490,206 (1) The loan balances are presented net of the unamortized fair value mark discount associated with the purchase accounting for acquired loans of $10.4 million and $13.1 million at June 30, 2016 and December 31, 2015, respectively. |
Summary of Activity in Allowance for Loan Losses | The following tables present the activity in the ALL and select loan information by portfolio segment for the three and six months ended June 30, 2016 and 2015, and for the year ended December 31, 2015: Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer HPFC Unallocated Total For The Three and Six Months Ended June 30, 2016 ALL for the three months ended: Beginning balance $ 4,516 $ 10,380 $ 3,298 $ 2,622 $ 182 $ 341 $ — $ 21,339 Loans charged off (19 ) (19 ) (203 ) (57 ) (26 ) (302 ) — (626 ) Recoveries 31 34 82 1 2 — — 150 Provision (credit) (1) (97 ) 1,164 1,381 380 35 (9 ) — 2,854 Ending balance $ 4,431 $ 11,559 $ 4,558 $ 2,946 $ 193 $ 30 $ — $ 23,717 ALL for the six months ended: Beginning balance $ 4,545 $ 10,432 $ 3,241 $ 2,731 $ 193 $ 24 $ — $ 21,166 Loans charged off (229 ) (241 ) (429 ) (185 ) (41 ) (302 ) — (1,427 ) Recoveries 71 43 134 2 4 — — 254 Provision (1) 44 1,325 1,612 398 37 308 — 3,724 Ending balance $ 4,431 $ 11,559 $ 4,558 $ 2,946 $ 193 $ 30 $ — $ 23,717 ALL balance attributable to loans: Individually evaluated for impairment $ 497 $ 29 $ 1,400 $ 89 $ — $ — $ — $ 2,015 Collectively evaluated for impairment 3,934 11,530 3,158 2,857 193 30 — 21,702 Total ending ALL $ 4,431 $ 11,559 $ 4,558 $ 2,946 $ 193 $ 30 $ — $ 23,717 Loans: Individually evaluated for impairment $ 4,926 $ 2,340 $ 3,461 $ 503 $ 7 $ — $ — $ 11,237 Collectively evaluated for impairment 795,630 1,015,437 333,056 341,478 17,811 70,651 — 2,574,063 Total ending loans balance $ 800,556 $ 1,017,777 $ 336,517 $ 341,981 $ 17,818 $ 70,651 $ — $ 2,585,300 For The Three and Six Months Ended June 30, 2015 ALL for the three months ended: Beginning balance $ 4,835 $ 8,234 $ 3,427 $ 2,247 $ 270 $ — $ 2,252 $ 21,265 Loans charged off (179 ) (48 ) (84 ) (152 ) (11 ) — — (474 ) Recoveries 17 54 78 — 3 — — 152 Provision (credit) (1) 16 (80 ) (106 ) 49 6 — 366 251 Ending balance $ 4,689 $ 8,160 $ 3,315 $ 2,144 $ 268 $ — $ 2,618 $ 21,194 ALL for the six months ended: Beginning balance $ 4,899 $ 7,951 $ 3,354 $ 2,247 $ 281 $ — $ 2,384 $ 21,116 Loans charged off (292 ) (103 ) (243 ) (241 ) (19 ) — — (898 ) Recoveries 20 64 182 5 14 — — 285 Provision (credit) (1) 62 248 22 133 (8 ) — 234 691 Ending balance $ 4,689 $ 8,160 $ 3,315 $ 2,144 $ 268 $ — $ 2,618 $ 21,194 ALL balance attributable to loans: Individually evaluated for impairment $ 724 $ 240 $ 136 $ 89 $ 78 $ — $ — $ 1,267 Collectively evaluated for impairment 3,965 7,920 3,179 2,055 190 — 2,618 19,927 Total ending ALL $ 4,689 $ 8,160 $ 3,315 $ 2,144 $ 268 $ — $ 2,618 $ 21,194 Loans: Individually evaluated for impairment $ 5,562 $ 3,034 $ 800 $ 986 $ 157 $ — $ — $ 10,539 Collectively evaluated for impairment 581,682 657,101 261,387 280,071 16,227 — — 1,796,468 Total ending loans balance $ 587,244 $ 660,135 $ 262,187 $ 281,057 $ 16,384 $ — $ — $ 1,807,007 Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer HPFC Unallocated Total For The Year Ended December 31, 2015 ALL: Beginning balance $ 4,899 $ 7,951 $ 3,354 $ 2,247 $ 281 $ — $ 2,384 $ 21,116 Loans charged off (801 ) (481 ) (655 ) (525 ) (154 ) — — (2,616 ) Recoveries 55 74 389 188 22 — — 728 Provision (credit) (1) 392 2,888 153 821 44 24 (2,384 ) 1,938 Ending balance $ 4,545 $ 10,432 $ 3,241 $ 2,731 $ 193 $ 24 $ — $ 21,166 ALL balance attributable to loans: Individually evaluated for impairment $ 544 $ 644 $ 92 $ 89 $ — $ — $ — $ 1,369 Collectively evaluated for impairment 4,001 9,788 3,149 2,642 193 24 — 19,797 Total ending ALL $ 4,545 $ 10,432 $ 3,241 $ 2,731 $ 193 $ 24 $ — $ 21,166 Loans: Individually evaluated for impairment $ 6,026 $ 4,610 $ 3,937 $ 588 $ 74 $ — $ — $ 15,235 Collectively evaluated for impairment 814,591 923,341 293,784 348,046 17,879 77,330 — 2,474,971 Total ending loans balance $ 820,617 $ 927,951 $ 297,721 $ 348,634 $ 17,953 $ 77,330 $ — $ 2,490,206 (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 June 30, 2016 and 2015, and December 31, 2015 , the reserve for unfunded commitments was $22,000 , $26,000 and $22,000 , respectively. |
Schedule of Provision for Credit Losses | The following table reconciles the three and six months ended June 30, 2016 and 2015, and year ended December 31, 2015 provision for loan losses to the provision for credit losses as presented on the consolidated statement of income: Three Months Ended June 30, Six Months Ended Year Ended December 31, 2016 2015 2016 2015 2015 Provision for loan losses $ 2,854 $ 251 $ 3,724 $ 691 $ 1,938 Change in reserve for unfunded commitments (2 ) 3 — 9 (2 ) Provision for credit losses $ 2,852 $ 254 $ 3,724 $ 700 $ 1,936 |
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 HPFC Total June 30, 2016 Pass (Grades 1-6) $ 785,673 $ 957,457 $ 322,590 $ — $ — $ 68,497 $ 2,134,217 Performing — — — 340,370 17,814 — 358,184 Special Mention (Grade 7) 3,025 18,087 8,043 — — 302 29,457 Substandard (Grade 8) 11,858 42,233 5,884 — — 1,852 61,827 Non-performing — — — 1,611 4 — 1,615 Total $ 800,556 $ 1,017,777 $ 336,517 $ 341,981 $ 17,818 $ 70,651 $ 2,585,300 December 31, 2015 Pass (Grades 1-6) $ 802,873 $ 868,664 $ 281,553 $ — $ — $ 70,173 $ 2,023,263 Performing — — — 346,701 17,835 — 364,536 Special Mention (Grade 7) 3,282 20,732 7,527 — — 3,179 34,720 Substandard (Grade 8) 14,462 38,555 8,641 — — 3,978 65,636 Non-performing — — — 1,933 118 — 2,051 Total $ 820,617 $ 927,951 $ 297,721 $ 348,634 $ 17,953 $ 77,330 $ 2,490,206 |
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 June 30, 2016 Residential real estate $ 1,862 $ 456 $ 3,592 $ 5,910 $ 794,646 $ 800,556 $ — $ 4,697 Commercial real estate 1,519 12,516 1,726 15,761 1,002,016 1,017,777 — 13,752 Commercial 3,296 78 756 4,130 332,387 336,517 — 3,539 Home equity 941 161 1,289 2,391 339,590 341,981 — 1,611 Consumer 13 — 7 20 17,798 17,818 — 4 HPFC 687 188 222 1,097 69,554 70,651 112 110 Total $ 8,318 $ 13,399 $ 7,592 $ 29,309 $ 2,555,991 $ 2,585,300 $ 112 $ 23,713 December 31, 2015 Residential real estate $ 3,325 $ 571 $ 6,077 $ 9,973 $ 810,644 $ 820,617 $ — $ 7,253 Commercial real estate 4,219 2,427 1,584 8,230 919,721 927,951 — 4,529 Commercial 267 550 1,002 1,819 295,902 297,721 — 4,489 Home equity 643 640 1,505 2,788 345,846 348,634 — 1,933 Consumer 112 7 118 237 17,716 17,953 — 118 HPFC 165 — — 165 77,165 77,330 — — Total $ 8,731 $ 4,195 $ 10,286 $ 23,212 $ 2,466,994 $ 2,490,206 $ — $ 18,322 |
Troubled Debt Restructuring and Specific Reserve Related to TDRs | The following is a summary of TDRs, by portfolio segment, and the associated specific reserve included within the ALL as of the periods indicated: Number of Contracts Recorded Investment Specific Reserve June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 June 30, 2016 December 31, 2015 Residential real estate 21 22 $ 3,273 $ 3,398 $ 497 $ 544 Commercial real estate 3 6 1,024 1,459 — 48 Commercial 7 9 316 399 — 11 Home equity 1 1 19 21 — — Total 32 38 $ 4,632 $ 5,277 $ 497 $ 603 |
Summary of Impaired Loan Balances and Associated Allowance by Portfolio Segment | The following is a summary of impaired loan balances and the associated allowance by portfolio segment as of and for three and six months ended June 30, 2016 and 2015, and as of and for the year-ended December 31, 2015: Three Months Ended Six Months Ended Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Interest June 30 , 2016: With an allowance recorded: Residential real estate $ 3,067 $ 3,067 $ 497 $ 3,156 $ 25 $ 3,137 $ 52 Commercial real estate 99 99 29 1,256 — 847 — Commercial 2,744 2,744 1,400 239 — 633 — Home equity 303 303 89 303 — 309 — Consumer — — — — — (11 ) — HPFC — — — 256 — 128 — Ending balance 6,213 6,213 2,015 5,210 25 5,043 52 Without an allowance recorded: Residential real estate 1,859 2,347 — 3,071 4 2,547 4 Commercial real estate 2,241 2,765 — 2,655 23 2,475 25 Commercial 717 814 — 3,978 (3 ) 3,281 8 Home equity 200 387 — 220 (4 ) 178 — Consumer 7 10 — 7 — 18 — HPFC — — — — — — — Ending balance 5,024 6,323 — 9,931 20 8,499 37 Total impaired loans $ 11,237 $ 12,536 $ 2,015 $ 15,141 $ 45 $ 13,542 $ 89 June 30 , 2015: With an allowance recorded: Residential real estate $ 4,111 $ 4,111 $ 724 $ 4,298 $ 27 $ 4,187 $ 56 Commercial real estate 468 501 240 154 — 223 — Commercial 217 217 136 213 1 228 1 Home equity 303 303 89 50 — 101 — Consumer 140 140 78 140 — 140 — HPFC — — — — — — — Ending Balance 5,239 5,272 1,267 4,855 28 4,879 57 Without an allowance recorded: Residential real estate 1,451 1,865 — 1,663 2 1,553 4 Commercial real estate 2,566 2,656 — 2,769 27 2,437 35 Commercial 583 712 — 544 4 585 8 Home equity 683 927 — 474 — 644 — Consumer 17 37 — 17 — 17 — HPFC — — — — — — — Ending Balance 5,300 6,197 — 5,467 33 5,236 47 Total impaired loans $ 10,539 $ 11,469 $ 1,267 $ 10,322 $ 61 $ 10,115 $ 104 Year Ended Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2015: With an allowance recorded: Residential real estate $ 3,191 $ 3,191 $ 544 $ 6,064 $ 112 Commercial real estate 1,825 1,857 644 1,753 — Commercial 156 156 92 945 2 Home equity 303 303 89 900 — Consumer — — — 195 — HPFC — — — — — Ending Balance 5,475 5,507 1,369 9,857 114 Without an allowance recorded: Residential real estate 2,835 4,353 — 2,175 8 Commercial real estate 2,785 3,426 — 2,719 65 Commercial 3,781 4,325 — 1,412 17 Home equity 285 688 — 369 — Consumer 74 150 — 20 — HPFC — — — — — Ending Balance 9,760 12,942 — 6,695 90 Total impaired loans $ 15,235 $ 18,449 $ 1,369 $ 16,552 $ 204 |
SBM ACQUISITION SBM ACQUISITION
SBM ACQUISITION SBM ACQUISITION(Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | At June 30, 2016, the Company's accounting for the acquisition of SBM was completed. The following table summarizes the fair value of the assets acquired and liabilities assumed: As Acquired Fair Value Adjustments (Previously Reported) Measurement-Period Adjustments As Recorded at Acquisition Consideration Paid: Cash $ 26,125 Company common stock (2,749,762 shares at $39.48 per share) 108,561 Non-qualified stock options 1,990 Total consideration paid 136,676 Recognized identifiable assets acquired and liabilities assumed, at fair value: Loans and loans held for sale $ 639,390 $ (11,497 ) $ 137 628,030 Cash and due from banks 86,042 — — 86,042 Investments 39,716 26 — 39,742 Deferred tax assets 26,293 (1,177 ) 666 25,782 Premises and equipment 16,851 7,093 — 23,944 OREO 2,530 (1,801 ) — 729 Core deposit intangible assets — 6,608 — 6,608 Other assets 5,421 (170 ) 157 5,408 Deposits and borrowings 719,640 1,546 — 721,186 Other liabilities 8,512 (198 ) — 8,314 Total identified assets acquired and liabilities assumed, at fair value $ 88,091 $ (2,266 ) $ 960 86,785 Goodwill $ 49,891 |
GOODWILL AND OTHER INTANGIBLE29
GOODWILL AND OTHER INTANGIBLE ASSESTS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill | Goodwill as of June 30, 2016 and December 31, 2015 for each reporting unit is shown in the table below: Goodwill Banking Financial Services Total December 31, 2015: Goodwill, gross $ 91,753 $ 7,474 $ 99,227 Accumulated impairment losses — (3,570 ) (3,570 ) Reported goodwill at December 31, 2015 91,753 3,904 95,657 2016 measurement-period adjustments (960 ) — (960 ) Reported goodwill at June 30, 2016 $ 90,793 $ 3,904 $ 94,697 |
Changes in Core Deposit Intangible and Trust Relationship Intangible | The changes in core deposit and trust relationship intangible assets for the six months ended June 30, 2016 are shown in the table below: Core Deposit Intangible Trust Relationship Intangible Total Accumulated Amortization Net Total Accumulated Amortization Net Balance at December 31, 2015 $ 23,908 $ (15,392 ) $ 8,516 $ 753 $ (602 ) $ 151 2016 amortization — (914 ) (914 ) — (38 ) (38 ) Balance at June 30, 2016 $ 23,908 $ (16,306 ) $ 7,602 $ 753 $ (640 ) $ 113 Total carrying value of other intangible assets at December 31, 2015 $ 8,667 Total carrying value of other intangible assets at June 30, 2016 $ 7,715 |
Expected Amortization Schedule for Intangible Assets | The following table reflects the expected amortization schedule for intangible assets over the period of estimated economic benefit (assuming no additional intangible assets are created or impaired): Core Deposit Intangible Trust Relationship Intangible Total 2016 $ 914 $ 37 $ 951 2017 1,735 76 1,811 2018 725 — 725 2019 705 — 705 2020 682 — 682 Thereafter 2,841 — 2,841 Total $ 7,602 $ 113 $ 7,715 |
REGULATORY CAPITAL (Tables)
REGULATORY CAPITAL (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | The following table presents the Company and Bank's regulatory capital ratios at the periods indicated: June 30, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer Minimum Regulatory Provision To Be "Well Capitalized" Under Prompt Corrective Action Provisions December 31, Minimum Regulatory Capital Required for Capital Adequacy Minimum Regulatory Provision To Be "Well Capitalized" Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Camden National Corporation: Total risk-based capital ratio $ 351,791 12.94 % 8.63 % N/A $ 335,740 12.98 % 8.00 % N/A Tier I risk-based capital ratio 313,052 11.51 % 6.63 % N/A 299,552 11.58 % 6.00 % N/A Common equity Tier I risk-based capital ratio 278,673 10.25 % 5.13 % N/A 269,350 10.42 % 4.50 % N/A Tier I leverage capital ratio 313,052 8.44 % 4.00 % N/A 299,552 8.74 % 4.00 % N/A Camden National Bank: Total risk-based capital ratio $ 317,484 11.64 % 8.63 % 10.00 % $ 304,847 11.75 % 8.00 % 10.00 % Tier I risk-based capital ratio 293,745 10.77 % 6.63 % 8.00 % 283,659 10.93 % 6.00 % 8.00 % Common equity Tier I risk-based capital ratio 293,745 10.77 % 5.13 % 6.50 % 283,659 10.93 % 4.50 % 6.50 % Tier I leverage capital ratio 293,745 7.98 % 4.00 % 5.00 % 283,659 8.33 % 4.00 % 5.00 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The Company's effective income tax rate for the three and six months ended June 30, 2016 and 2015 was as follows: Three Months Ended Six Months Ended 2016 2015 2016 2015 Income tax expense $ 4,258 $ 3,341 $ 7,700 $ 6,064 Income before income taxes $ 13,874 $ 10,534 $ 25,962 $ 18,868 Effective tax rate 30.7 % 31.7 % 29.7 % 32.1 % |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Period Benefit Cost | The components of net period benefit cost for the periods ended June 30, 2016 and 2015 were as follows: Supplemental Executive Retirement Plan: Three Months Ended Six Months Ended June 30, Net periodic benefit cost 2016 2015 2016 2015 Service cost $ 77 $ 77 $ 154 $ 154 Interest cost 108 106 216 212 Recognized net actuarial loss 55 54 110 108 Recognized prior service cost 2 5 4 10 Net period benefit cost (1) $ 242 $ 242 $ 484 $ 484 (1) Presented within the consolidated statements of income within salaries and employee benefits. Other Postretirement Benefit Plan: Three Months Ended June 30, Six Months Ended June 30, Net periodic benefit cost 2016 2015 2016 2015 Service cost $ 15 $ 15 $ 30 $ 30 Interest cost 38 29 76 58 Recognized net actuarial loss 8 6 16 12 Amortization of prior service credit (6 ) (6 ) (12 ) (12 ) Net period benefit cost (1) $ 55 $ 44 $ 110 $ 88 (1) Presented within the consolidated statements of income within salaries and employee benefits. |
REPURCHASE AGREEMENTS (Tables)
REPURCHASE AGREEMENTS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 as of June 30, 2016 and December 31, 2015: Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30 - 90 Days Greater than 90 Days Total June 30, 2016: Customer Repurchase Agreements: Obligations of states and political subdivisions $ 570 $ — $ — $ — $ 570 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 98,398 — — — 98,398 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 83,581 — — — 83,581 Total Customer Repurchase Agreements 182,549 — — — 182,549 Wholesale Repurchase Agreements: Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises — — 18,492 3,721 22,213 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises — — 6,508 1,309 7,817 Total Wholesale Repurchase Agreements — — 25,000 5,030 30,030 Total Repurchase Agreements (1) $ 182,549 $ — $ 25,000 $ 5,030 $ 212,579 December 31, 2015: Customer Repurchase Agreements: Obligations of states and political subdivisions $ 556 $ — $ — $ — $ 556 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 95,967 — — — 95,967 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 88,466 — — — 88,466 Total Customer Repurchase Agreements 184,989 — — — 184,989 Wholesale Repurchase Agreements: Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises — — — 22,016 22,016 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises — — — 8,036 8,036 Total Wholesale Repurchase Agreements — — — 30,052 30,052 Total Repurchase Agreements (1) $ 184,989 $ — $ — $ 30,052 $ 215,041 (1) Total repurchase agreements are presented within other borrowed funds on the consolidated statements of condition. |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 and December 31, 2015 , 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) June 30, 2016 Financial assets: Loans held for sale $ 22,928 $ — $ 22,928 $ — AFS securities: Obligations of U.S. government-sponsored enterprises 5,131 — 5,131 — Obligations of states and political subdivisions 10,044 — 10,044 — Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 470,471 — 470,471 — Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 307,612 — 307,612 — Subordinated corporate bonds 5,623 — 5,623 — Equity securities 645 — 645 — Customer loan swaps 15,001 — 15,001 — Interest rate lock commitments 523 — 523 — Financial liabilities: Junior subordinated debt interest rate swaps 13,265 — 13,265 — FHLBB advance interest rate swaps 1,172 — 1,172 — Customer loan swaps 15,001 — 15,001 — December 31, 2015 Financial assets: Loans held for sale $ 10,958 $ — $ 10,958 $ — AFS securities: Obligations of U.S. government-sponsored enterprises 5,040 — 5,040 — Obligations of states and political subdivisions 17,694 — 17,694 — Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 419,046 — 419,046 — Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 306,857 — 306,857 — Subordinated corporate bonds 996 — 996 — Equity securities 705 — 705 — Customer loan swaps 3,166 — 3,166 — Interest rate lock commitments 139 — 139 — Financial liabilities: Junior subordinated debt interest rate swaps 9,229 — 9,229 — FHLBB advance interest rate swaps 576 — 576 — Customer loan swaps 3,166 — 3,166 — |
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 June 30, 2016 and December 31, 2015 . Fair Value Readily Available Market Prices (Level 1) Observable Market Data (Level 2) Company Determined Fair Value (Level 3) June 30, 2016 Financial assets: Collateral-dependent impaired loans $ 522 $ — $ — $ 522 MSRs (1) 1,369 — 1,369 — Non-financial assets: OREO 855 — — 855 December 31, 2015 Financial assets: Collateral-dependent impaired loans $ 1,971 $ — $ — $ 1,971 MSRs (1) 440 — 440 — Non-financial assets: OREO 1,304 — — 1,304 (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 June 30, 2016 and December 31, 2015 : Fair Value Valuation Methodology Unobservable input Discount Range (Weighted-Average) June 30, 2016 Collateral-dependent impaired loans: Partially charged-off $ 150 Market approach appraisal of collateral Management adjustment of appraisal 0% (0%) Estimated selling costs 0 - 10% (4%) Specifically reserved 372 Market approach appraisal of collateral Management adjustment of appraisal 0 - 50% (16%) Estimated selling costs 10% (10%) OREO 855 Market approach appraisal of collateral Management adjustment of appraisal 0 - 73% (10%) Estimated selling cost 10% (10%) December 31, 2015 Collateral-dependent impaired loans: Partially charged-off $ 399 Market approach appraisal of collateral Management adjustment 0% (0%) Estimated selling costs 0 - 10% (7%) Specifically reserved 1,572 Market approach appraisal of collateral Management adjustment 0 - 57% (45%) Estimated selling costs 10% (10%) OREO 1,304 Market approach appraisal of collateral Management adjustment 0 - 43% (18%) Estimated selling costs 10% (10%) |
Carrying Amounts and Estimated Fair Value for Financial Instrument Assets and Liabilities | The following table presents the carrying amounts and estimated fair value for financial instrument assets and liabilities measured at June 30, 2016 : 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 $ 96,443 $ 96,443 $ 96,443 $ — $ — AFS securities 799,526 799,526 — 799,526 — HTM securities 93,609 97,692 — 97,692 — Loans held for sale 22,928 22,928 — 22,928 — Residential real estate loans (1) 796,125 815,775 — — 815,775 Commercial real estate loans (1) 1,006,218 993,814 — — 993,814 Commercial loans (1)(2) 402,580 405,395 — — 405,395 Home equity loans (1) 339,035 339,449 — — 339,449 Consumer loans (1) 17,625 18,767 — — 18,767 MSRs (3) 1,410 1,864 — 1,864 — Interest receivable 8,757 8,757 — 8,757 — Customer loan swaps 15,001 15,001 — 15,001 — Interest rate lock commitments 523 523 — 523 — Financial liabilities: Deposits $ 2,773,487 $ 2,776,511 $ — $ 2,776,511 $ — FHLB advances 45,000 45,943 — 45,943 — Commercial repurchase agreements 30,030 30,909 — 30,909 — Other borrowed funds 556,769 558,059 558,059 — Subordinated debentures 58,677 40,800 — 40,800 — Interest payable 643 643 — 643 — Junior subordinated debt interest rate swaps 13,265 13,265 — 13,265 — FHLBB advance interest rate swaps 1,172 1,172 — 1,172 — Customer loan swaps 15,001 15,001 — 15,001 — (1) The presented carrying amount is net of the allocated ALL. (2) Includes the HPFC loan portfolio. (3) 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, 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 $ 79,488 $ 79,488 $ 79,488 $ — $ — AFS securities 750,338 750,338 — 750,338 — HTM securities 84,144 85,647 — 85,647 — Loans held for sale 10,958 10,958 — 10,958 — Residential real estate loans (1) 808,180 820,774 — — 820,774 Commercial real estate loans (1) 922,257 911,316 — — 911,316 Commercial loans (1)(2) 371,684 371,854 — — 371,854 Home equity loans (1) 349,215 348,963 — — 348,963 Consumer loans (1) 17,704 18,163 — — 18,163 MSRs (3) 2,161 2,947 — 2,947 — Interest receivable 7,985 7,985 — 7,985 — Customer loan swaps 3,166 3,166 — 3,166 — Interest rate lock commitments 139 139 — 139 — Financial liabilities: Deposits $ 2,726,379 $ 2,726,300 $ — $ 2,726,300 $ — FHLB advances 55,000 56,001 — 56,001 — Commercial repurchase agreements 30,052 30,931 — 30,931 — Other borrowed funds 428,711 428,778 — 428,778 — Subordinated debentures 58,599 42,950 — 42,950 — Interest payable 641 641 — 641 — Junior subordinated debt interest rate swaps 9,229 9,229 — 9,229 — FHLBB advance interest rate swaps 576 576 — 576 — Customer loan swaps 3,166 3,166 — 3,166 — (1) The presented carrying amount is net of the allocated ALL. (2) Includes the HPFC loan portfolio. (3) Reported fair value represents all MSRs currently being serviced by the Company, regardless of carrying amount. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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: June 30, December 31, Lending-Related Instruments: Loan origination commitments and unadvanced lines of credit: Home equity $ 464,991 $ 464,701 Commercial and commercial real estate 52,268 94,791 Residential 28,809 16,256 Letters of credit 3,009 4,468 Other commitments 442 433 Derivative Financial Instruments: Customer loan swaps $ 464,514 $ 285,888 FHLBB advance interest rate swaps 50,000 50,000 Junior subordinated debt interest rate swaps 43,000 43,000 Interest rate lock commitments 49,113 20,735 |
Summary of Derivative Financial Instruments | The following table presents the total positions, notional and fair value of the Company's customer loans swaps with its commercial customers and the corresponding interest rate swap agreements with counterparty for the periods indicated: June 30, 2016 December 31, 2015 Number of Positions Notional Fair Value Number of Positions Notional Fair Value Receive fixed, pay variable (1) 44 $ 232,257 $ 15,001 28 $ 142,944 $ 3,166 Pay fixed, received variable (2) 44 232,257 (15,001 ) 28 142,944 (3,166 ) (1) Presented within other assets on the consolidated statements of condition. (2) Presented within accrued interest and other liabilities on the consolidated statements of condition. The details of the interest rate swap agreements are as follows: June 30, December 31, 2015 Notional Trade Maturity Date Variable Index Fixed Rate Fair Value (1) Fair Value (1) $ 25,000 2/25/2015 2/25/2018 1-Month USD LIBOR 1.54% $ (421 ) $ (230 ) 25,000 2/25/2015 2/25/2019 1-Month USD LIBOR 1.74% (751 ) (346 ) $ 50,000 $ (1,172 ) $ (576 ) (1) Presented within accrued interest and other liabilities on the consolidated statements of condition. The details of the interest rate swap agreements are as follows: June 30, December 31, 2015 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% $ (1,354 ) $ (1,038 ) 10,000 7/8/2009 6/30/2029 3-Month USD LIBOR 5.84% (3,583 ) (2,537 ) 10,000 5/6/2010 6/30/2030 3-Month USD LIBOR 5.71% (3,604 ) (2,477 ) 5,000 3/14/2011 3/30/2031 3-Month USD LIBOR 4.35% (1,893 ) (1,301 ) 8,000 5/4/2011 7/7/2031 3-Month USD LIBOR 4.14% (2,831 ) (1,876 ) $ 43,000 $ (13,265 ) $ (9,229 ) (1) Presented within accrued interest and other liabilities on the consolidated statements of condition. |
Schedule of Interest Rate Derivatives | At June 30, 2016 and December 31, 2015 , our pipeline of mortgage loans with interest rate lock commitments were as follows: June 30, 2016 December 31, 2015 Notional Fair Value Notional Fair Value Mortgage interest rate locks (1) $ 49,113 $ 523 $ 20,735 $ 139 (1) Presented within other assets on the consolidated statements of condition. |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The table below presents the effect of the Company’s derivative financial instruments included in OCI and current earnings for the periods indicated: For The Three Months Ended June 30, For The 2016 2015 2016 2015 Derivatives designated as cash flow hedges Net change in unrealized losses on cash flow hedging derivatives, net of tax (effective portion) $ (905 ) $ 1,694 $ (3,010 ) $ 522 Net reclassification adjustment for effective portion of cash flow hedges included in interest expense (effective portion), gross $ (622 ) $ (158 ) $ (987 ) $ (501 ) |
RECENT ACCOUNTING PRONOUNCEME36
RECENT ACCOUNTING PRONOUNCEMENTS RECENT ACCOUNTING PRONOUNCEMENTS (Tables) (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | In the second quarter of 2016, the Company elected to early adopt ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , issued by the FASB in March 2016 . The Company applied the provisions of the ASU effective as of January 1, 2016, and, as such, previously reported balances on the Company's consolidated statements of income for the three months ended March 31, 2016 were updated to account for the ASU adoption as follows: Three Months Ended March 31, 2016 As Previously Reported As Adjusted Change Net income $ 8,334 $ 8,646 $ 312 Basic EPS $ 0.81 $ 0.84 $ 0.03 Diluted EPS $ 0.81 $ 0.84 $ 0.03 |
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 | 6 Months Ended | ||||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Net income | $ 9,616 | $ 8,646 | $ 7,193 | $ 18,262 | $ 12,804 | |
Dividends and undistributed earnings allocated to participating securities | [1] | (49) | (23) | (81) | (40) | |
Net income available to common shareholders | $ 9,567 | $ 7,170 | $ 18,181 | $ 12,764 | ||
Weighted-average common shares outstanding for basic EPS | 10,276,876 | 7,446,156 | 10,268,440 | 7,438,626 | ||
Dilutive effect of stock-based awards (shares) | [2] | 50,498 | 21,209 | 46,805 | 20,838 | |
Weighted-average common and potential common shares for diluted EPS (shares) | 10,327,374 | 7,467,365 | 10,315,245 | 7,459,464 | ||
Basic EPS (in dollars per share) | $ 0.93 | $ 0.84 | $ 0.97 | $ 1.77 | $ 1.72 | |
Diluted EPS (in dollars per share) | $ 0.92 | $ 0.84 | $ 0.96 | $ 1.76 | $ 1.71 | |
Employee Stock Option | ||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Stock options (shares) | [3] | 12,250 | 15,250 | 12,250 | 15,250 | |
[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 and are considered anti-dilutive. |
SECURITIES (Summary of Amortize
SECURITIES (Summary of Amortized Costs and Estimated Fair Values of Available-For-Sale Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Investments [Line Items] | ||
Available-for-sale, Amortized Cost | $ 788,224 | $ 756,186 |
Available-for-sale, Unrealized Gains | 12,771 | 4,293 |
Available-for-sale, Unrealized Losses | (1,469) | (10,141) |
Available-for-sale, Fair Value | 799,526 | 750,338 |
Held-to-maturity securities, at amortized cost | 93,609 | 84,144 |
Held-to-maturity securities, Unrealized Gains | 4,086 | 1,564 |
Held-to-maturity securities, Unrealized Losses | (3) | (61) |
Held-to-maturity Securities, Fair Value | 97,692 | 85,647 |
Obligations of U.S. government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Amortized Cost | 4,975 | 4,971 |
Available-for-sale, Unrealized Gains | 156 | 69 |
Available-for-sale, Unrealized Losses | 0 | 0 |
Available-for-sale, Fair Value | 5,131 | 5,040 |
Obligations of states and political subdivisions | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Amortized Cost | 9,765 | 17,355 |
Available-for-sale, Unrealized Gains | 279 | 339 |
Available-for-sale, Unrealized Losses | 0 | 0 |
Available-for-sale, Fair Value | 10,044 | 17,694 |
Held-to-maturity securities, at amortized cost | 93,609 | 84,144 |
Held-to-maturity securities, Unrealized Gains | 4,086 | 1,564 |
Held-to-maturity securities, Unrealized Losses | (3) | (61) |
Held-to-maturity Securities, Fair Value | 97,692 | 85,647 |
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Amortized Cost | 461,493 | 419,429 |
Available-for-sale, Unrealized Gains | 9,117 | 3,474 |
Available-for-sale, Unrealized Losses | (139) | (3,857) |
Available-for-sale, Fair Value | 470,471 | 419,046 |
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Amortized Cost | 305,878 | 312,719 |
Available-for-sale, Unrealized Gains | 3,064 | 409 |
Available-for-sale, Unrealized Losses | (1,330) | (6,271) |
Available-for-sale, Fair Value | 307,612 | 306,857 |
Corporate Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Amortized Cost | 5,481 | 1,000 |
Available-for-sale, Unrealized Gains | 142 | 0 |
Available-for-sale, Unrealized Losses | 0 | (4) |
Available-for-sale, Fair Value | 5,623 | 996 |
Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Amortized Cost | 787,592 | 755,474 |
Available-for-sale, Unrealized Gains | 12,758 | 4,291 |
Available-for-sale, Unrealized Losses | (1,469) | (10,132) |
Available-for-sale, Fair Value | 798,881 | 749,633 |
Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Amortized Cost | 632 | 712 |
Available-for-sale, Unrealized Gains | 13 | 2 |
Available-for-sale, Unrealized Losses | 0 | (9) |
Available-for-sale, Fair Value | $ 645 | $ 705 |
SECURITIES (Schedule of Unreali
SECURITIES (Schedule of Unrealized Gross Losses and Estimated Fair values of Investment Securities) (Details) $ in Thousands | Jun. 30, 2016USD ($)security | Dec. 31, 2015USD ($)security |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 20 | 110 |
Fair Value - Less Than 12 Months | $ 1,931 | $ 347,651 |
Unrealized Losses - Less Than 12 Months | (8) | (3,432) |
Fair Value - 12 Months of More | 127,623 | 192,809 |
Unrealized Losses - 12 Months or More | (1,461) | (6,709) |
Fair Value | 129,554 | 540,460 |
Unrealized losses | (1,469) | (10,141) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 423 | 5,507 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (3) | (61) |
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 | 423 | 5,507 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | (3) | (61) |
AFS and HTM securities in Continues Unrealized Loss Position | $ 130,000 | $ 546,100 |
Unrealized Loss as a Percent of Fair Value | 0.00% | 2.00% |
AFS and HTM Securities Unrealized Loss Accumulated in Investments | $ 1,500 | $ 10,200 |
Mortgage Backed Securities and Collateralized Mortgage Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value - 12 Months of More | $ 129,600 | $ 192,800 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security | 19 | 28 |
AFS and HTM Securities Unrealized Loss Accumulated in Investments | $ 1,500 | $ 6,700 |
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 | 1 | 234,897 |
Unrealized Losses - Less Than 12 Months | 0 | (2,351) |
Fair Value - 12 Months of More | 33,618 | 45,629 |
Unrealized Losses - 12 Months or More | (139) | (1,506) |
Fair Value | 33,619 | 280,526 |
Unrealized losses | (139) | (3,857) |
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 | 1,930 | 111,143 |
Unrealized Losses - Less Than 12 Months | (8) | (1,068) |
Fair Value - 12 Months of More | 94,005 | 147,180 |
Unrealized Losses - 12 Months or More | (1,322) | (5,203) |
Fair Value | 95,935 | 258,323 |
Unrealized losses | (1,330) | (6,271) |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value - Less Than 12 Months | 996 | |
Unrealized Losses - Less Than 12 Months | (4) | |
Fair Value - 12 Months of More | 0 | |
Unrealized Losses - 12 Months or More | 0 | |
Fair Value | 996 | |
Unrealized losses | (4) | |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value - Less Than 12 Months | 615 | |
Unrealized Losses - Less Than 12 Months | (9) | |
Fair Value - 12 Months of More | 0 | |
Unrealized Losses - 12 Months or More | 0 | |
Fair Value | 615 | |
Unrealized losses | (9) | |
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 | 423 | 5,507 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (3) | (61) |
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 | 423 | 5,507 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (3) | $ (61) |
SECURITIES (Schedule of Company
SECURITIES (Schedule of Company's Sales of Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Gain (Loss) on Investments [Line Items] | ||||
Proceeds from Sale of Available-for-sale Securities | $ 84 | $ 0 | $ 84 | $ 0 |
Available-for-sale Securities, Gross Realized Gains | 4 | 0 | 4 | 0 |
Available-for-sale Securities, Gross Realized Losses | $ 0 | 0 | $ 0 | $ 0 |
Investment Securities Sold, Carrying Amount | $ 0 |
SECURITIES (Schedule of Amortiz
SECURITIES (Schedule of Amortized Cost and Estimated Fair Values of Debt Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Available-for-sale, Amortized Cost | ||
Due in one year or less | $ 1,430 | |
Due after one year through five years | 107,452 | |
Due after five years through ten years | 101,018 | |
Due after ten years | 577,692 | |
Amortized cost, total | 787,592 | |
Available-for-sale, Fair Value | ||
Due in one year or less | 1,441 | |
Due after one year through five years | 109,501 | |
Due after five years through ten years | 104,203 | |
Due after ten years | 583,736 | |
Fair value, total | 798,881 | |
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis [Abstract] | ||
Due after one year through five years | 2,189 | |
Due after five years through ten years | 4,587 | |
Due after ten years | 86,833 | |
Held-to-maturity securities, at amortized cost | 93,609 | $ 84,144 |
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Fair Value [Abstract] | ||
Due after one year through five years | 2,247 | |
Due after five years through ten years | 4,726 | |
Due after ten years | 90,719 | |
Held-to-maturity Securities, Fair Value | $ 97,692 | $ 85,647 |
SECURITIES (Narrative) (Detail)
SECURITIES (Narrative) (Detail) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($)security | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)security | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)security | |
Schedule of Investments [Line Items] | |||||
Net unrealized gains (losses) on available-for-sale securities, net of tax | $ 7,347,000 | $ 7,347,000 | $ (3,801,000) | ||
Deferred tax assets, unrealized losses on available for sale securities | $ 4,000,000 | 4,000,000 | $ 2,000,000 | ||
Payments to acquire investments | $ 108,400,000 | $ 96,200,000 | |||
AFS securities in unrealized loss positions, number of positions | security | 20 | 20 | 110 | ||
AFS and HTM securities in Continues Unrealized Loss Position | $ 130,000,000 | $ 130,000,000 | $ 546,100,000 | ||
AFS and HTM Securities Unrealized Loss Accumulated in Investments | 1,500,000 | 1,500,000 | 10,200,000 | ||
Fair Value - 12 Months of More | $ 127,623,000 | $ 127,623,000 | $ 192,809,000 | ||
Unrealized Loss as a Percent of Fair Value | 0.00% | 0.00% | 2.00% | ||
Proceeds from Sale of Available-for-sale Securities | $ 84,000 | $ 0 | $ 84,000 | 0 | |
Available-for-sale Securities, Gross Realized Gains | 4,000 | 0 | 4,000 | 0 | |
Investment securities sold, carrying amount | $ 0 | ||||
Federal Home Loan Bank Stock | 23,500,000 | 23,500,000 | $ 20,600,000 | ||
Federal Reserve Bank Stock | 5,400,000 | 5,400,000 | 908,000 | ||
Security pledged as collateral, amortized cost | 549,300,000 | 549,300,000 | 577,600,000 | ||
Security pledged as collateral, fair value | 555,900,000 | 555,900,000 | 570,900,000 | ||
Mortgage Backed Securities and Collateralized Mortgage Obligations [Member] | |||||
Schedule of Investments [Line Items] | |||||
AFS and HTM Securities Unrealized Loss Accumulated in Investments | 1,500,000 | 1,500,000 | 6,700,000 | ||
Fair Value - 12 Months of More | $ 129,600,000 | $ 129,600,000 | $ 192,800,000 | ||
AFS securities in unrealized loss positions, number of positions greater than or equal to one year | security | 19 | 19 | 28 | ||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | |||||
Schedule of Investments [Line Items] | |||||
Fair Value - 12 Months of More | $ 33,618,000 | $ 33,618,000 | $ 45,629,000 | ||
Available-for-sale Securities | |||||
Schedule of Investments [Line Items] | |||||
Payments to acquire investments | 98,700,000 | 56,000,000 | |||
Held-to-maturity Securities | |||||
Schedule of Investments [Line Items] | |||||
Payments to acquire investments | $ 9,700,000 | $ 40,200,000 |
LOANS AND ALLOWANCE FOR LOAN 43
LOANS AND ALLOWANCE FOR LOAN LOSSES (Composition of Loan Portfolio) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Deferred loan fees, net | $ (309) | $ (370) | ||
Loans | 2,585,300 | 2,490,206 | $ 1,807,007 | |
Residential Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | [1] | 801,965 | 821,074 | |
Loans | 800,556 | 820,617 | 587,244 | |
Commercial Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | [1] | 1,018,643 | 927,951 | |
Loans | 1,017,777 | 927,951 | 660,135 | |
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | [1] | 336,114 | 297,721 | |
Loans | 336,517 | 297,721 | 262,187 | |
Home Equity | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | [1] | 340,623 | 348,634 | |
Loans | 341,981 | 348,634 | 281,057 | |
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | [1] | 17,732 | 17,953 | |
Loans | 17,818 | 17,953 | 16,384 | |
HPFC Portfolio Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | [1] | 70,532 | 77,243 | |
Loans | $ 70,651 | $ 77,330 | $ 0 | |
[1] | (1)The loan balances are presented net of the unamortized fair value mark discount associated with the purchase accounting for acquired loans of $10.4 million and $13.1 million at June 30, 2016 and December 31, 2015, respectively. |
LOANS AND ALLOWANCE FOR LOAN 44
LOANS AND ALLOWANCE FOR LOAN LOSSES (Activity in Allowance for Loan Losses by Portfolio Segment) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Reserve for unfunded commitments | $ 22,000 | $ 26,000 | $ 22,000 | $ 26,000 | $ 22,000 | |
Activity in ALL: | ||||||
Beginning balance | 21,339,000 | 21,265,000 | 21,166,000 | 21,116,000 | 21,116,000 | |
Loans charged off | (626,000) | (474,000) | (1,427,000) | (898,000) | (2,616,000) | |
Recoveries | 150,000 | 152,000 | 254,000 | 285,000 | 728,000 | |
Provision (credit)(1) | [1] | 2,854,000 | 251,000 | 3,724,000 | 691,000 | 1,938,000 |
Ending balance | 23,717,000 | 21,194,000 | 23,717,000 | 21,194,000 | 21,166,000 | |
Ending Balance: Individually evaluated for impairment | 2,015,000 | 1,267,000 | 2,015,000 | 1,267,000 | 1,369,000 | |
Ending Balance: Collectively evaluated for impairment | 21,702,000 | 19,927,000 | 21,702,000 | 19,927,000 | 19,797,000 | |
Ending Balance: Individually evaluated for impairment | 11,237,000 | 10,539,000 | 11,237,000 | 10,539,000 | 15,235,000 | |
Ending Balance: Collectively evaluated for impairment | 2,574,063,000 | 1,796,468,000 | 2,574,063,000 | 1,796,468,000 | 2,474,971,000 | |
Total Loans Outstanding | 2,585,300,000 | 1,807,007,000 | 2,585,300,000 | 1,807,007,000 | 2,490,206,000 | |
Residential Real Estate | ||||||
Activity in ALL: | ||||||
Beginning balance | 4,516,000 | 4,835,000 | 4,545,000 | 4,899,000 | 4,899,000 | |
Loans charged off | (19,000) | (179,000) | (229,000) | (292,000) | (801,000) | |
Recoveries | 31,000 | 17,000 | 71,000 | 20,000 | 55,000 | |
Provision (credit)(1) | (97,000) | 16,000 | 44,000 | 62,000 | 392,000 | |
Ending balance | 4,431,000 | 4,689,000 | 4,431,000 | 4,689,000 | 4,545,000 | |
Ending Balance: Individually evaluated for impairment | 497,000 | 724,000 | 497,000 | 724,000 | 544,000 | |
Ending Balance: Collectively evaluated for impairment | 3,934,000 | 3,965,000 | 3,934,000 | 3,965,000 | 4,001,000 | |
Ending Balance: Individually evaluated for impairment | 4,926,000 | 5,562,000 | 4,926,000 | 5,562,000 | 6,026,000 | |
Ending Balance: Collectively evaluated for impairment | 795,630,000 | 581,682,000 | 795,630,000 | 581,682,000 | 814,591,000 | |
Total Loans Outstanding | 800,556,000 | 587,244,000 | 800,556,000 | 587,244,000 | 820,617,000 | |
Commercial Real Estate | ||||||
Activity in ALL: | ||||||
Beginning balance | 10,380,000 | 8,234,000 | 10,432,000 | 7,951,000 | 7,951,000 | |
Loans charged off | (19,000) | (48,000) | (241,000) | (103,000) | (481,000) | |
Recoveries | 34,000 | 54,000 | 43,000 | 64,000 | 74,000 | |
Provision (credit)(1) | 1,164,000 | (80,000) | 1,325,000 | 248,000 | 2,888,000 | |
Ending balance | 11,559,000 | 8,160,000 | 11,559,000 | 8,160,000 | 10,432,000 | |
Ending Balance: Individually evaluated for impairment | 29,000 | 240,000 | 29,000 | 240,000 | 644,000 | |
Ending Balance: Collectively evaluated for impairment | 11,530,000 | 7,920,000 | 11,530,000 | 7,920,000 | 9,788,000 | |
Ending Balance: Individually evaluated for impairment | 2,340,000 | 3,034,000 | 2,340,000 | 3,034,000 | 4,610,000 | |
Ending Balance: Collectively evaluated for impairment | 1,015,437,000 | 657,101,000 | 1,015,437,000 | 657,101,000 | 923,341,000 | |
Total Loans Outstanding | 1,017,777,000 | 660,135,000 | 1,017,777,000 | 660,135,000 | 927,951,000 | |
Commercial | ||||||
Activity in ALL: | ||||||
Beginning balance | 3,298,000 | 3,427,000 | 3,241,000 | 3,354,000 | 3,354,000 | |
Loans charged off | (203,000) | (84,000) | (429,000) | (243,000) | (655,000) | |
Recoveries | 82,000 | 78,000 | 134,000 | 182,000 | 389,000 | |
Provision (credit)(1) | 1,381,000 | (106,000) | 1,612,000 | 22,000 | 153,000 | |
Ending balance | 4,558,000 | 3,315,000 | 4,558,000 | 3,315,000 | 3,241,000 | |
Ending Balance: Individually evaluated for impairment | 1,400,000 | 136,000 | 1,400,000 | 136,000 | 92,000 | |
Ending Balance: Collectively evaluated for impairment | 3,158,000 | 3,179,000 | 3,158,000 | 3,179,000 | 3,149,000 | |
Ending Balance: Individually evaluated for impairment | 3,461,000 | 800,000 | 3,461,000 | 800,000 | 3,937,000 | |
Ending Balance: Collectively evaluated for impairment | 333,056,000 | 261,387,000 | 333,056,000 | 261,387,000 | 293,784,000 | |
Total Loans Outstanding | 336,517,000 | 262,187,000 | 336,517,000 | 262,187,000 | 297,721,000 | |
Home Equity | ||||||
Activity in ALL: | ||||||
Beginning balance | 2,622,000 | 2,247,000 | 2,731,000 | 2,247,000 | 2,247,000 | |
Loans charged off | (57,000) | (152,000) | (185,000) | (241,000) | (525,000) | |
Recoveries | 1,000 | 0 | 2,000 | 5,000 | 188,000 | |
Provision (credit)(1) | 380,000 | 49,000 | 398,000 | 133,000 | 821,000 | |
Ending balance | 2,946,000 | 2,144,000 | 2,946,000 | 2,144,000 | 2,731,000 | |
Ending Balance: Individually evaluated for impairment | 89,000 | 89,000 | 89,000 | 89,000 | 89,000 | |
Ending Balance: Collectively evaluated for impairment | 2,857,000 | 2,055,000 | 2,857,000 | 2,055,000 | 2,642,000 | |
Ending Balance: Individually evaluated for impairment | 503,000 | 986,000 | 503,000 | 986,000 | 588,000 | |
Ending Balance: Collectively evaluated for impairment | 341,478,000 | 280,071,000 | 341,478,000 | 280,071,000 | 348,046,000 | |
Total Loans Outstanding | 341,981,000 | 281,057,000 | 341,981,000 | 281,057,000 | 348,634,000 | |
Consumer | ||||||
Activity in ALL: | ||||||
Beginning balance | 182,000 | 270,000 | 193,000 | 281,000 | 281,000 | |
Loans charged off | (26,000) | (11,000) | (41,000) | (19,000) | (154,000) | |
Recoveries | 2,000 | 3,000 | 4,000 | 14,000 | 22,000 | |
Provision (credit)(1) | 35,000 | 6,000 | 37,000 | (8,000) | 44,000 | |
Ending balance | 193,000 | 268,000 | 193,000 | 268,000 | 193,000 | |
Ending Balance: Individually evaluated for impairment | 0 | 78,000 | 0 | 78,000 | 0 | |
Ending Balance: Collectively evaluated for impairment | 193,000 | 190,000 | 193,000 | 190,000 | 193,000 | |
Ending Balance: Individually evaluated for impairment | 7,000 | 157,000 | 7,000 | 157,000 | 74,000 | |
Ending Balance: Collectively evaluated for impairment | 17,811,000 | 16,227,000 | 17,811,000 | 16,227,000 | 17,879,000 | |
Total Loans Outstanding | 17,818,000 | 16,384,000 | 17,818,000 | 16,384,000 | 17,953,000 | |
HPFC Portfolio Segment [Member] | ||||||
Activity in ALL: | ||||||
Beginning balance | 341,000 | 0 | 24,000 | 0 | 0 | |
Loans charged off | (302,000) | 0 | (302,000) | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | 0 | |
Provision (credit)(1) | (9,000) | 0 | 308,000 | 0 | 24,000 | |
Ending balance | 30,000 | 0 | 30,000 | 0 | 24,000 | |
Ending Balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | |
Ending Balance: Collectively evaluated for impairment | 30,000 | 0 | 30,000 | 0 | 24,000 | |
Ending Balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | |
Ending Balance: Collectively evaluated for impairment | 70,651,000 | 0 | 70,651,000 | 0 | 77,330,000 | |
Total Loans Outstanding | 70,651,000 | 0 | 70,651,000 | 0 | 77,330,000 | |
Unallocated | ||||||
Activity in ALL: | ||||||
Beginning balance | 0 | 2,252,000 | 0 | 2,384,000 | 2,384,000 | |
Loans charged off | 0 | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | 0 | |
Provision (credit)(1) | 0 | 366,000 | 0 | 234,000 | (2,384,000) | |
Ending balance | 0 | 2,618,000 | 0 | 2,618,000 | 0 | |
Ending Balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | |
Ending Balance: Collectively evaluated for impairment | 0 | 2,618,000 | 0 | 2,618,000 | 0 | |
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 June 30, 2016 and 2015, and December 31, 2015, the reserve for unfunded commitments was $22,000, $26,000 and $22,000, respectively. |
LOANS AND ALLOWANCE FOR LOAN 45
LOANS AND ALLOWANCE FOR LOAN LOSSES LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Provision for Credit Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | ||
LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract] | ||||||
Provision (credit)(1) | [1] | $ 2,854 | $ 251 | $ 3,724 | $ 691 | $ 1,938 |
Provision for Other Credit Losses | (2) | 3 | 0 | 9 | (2) | |
Provision for Loan, Lease, and Other Losses | $ 2,852 | $ 254 | $ 3,724 | $ 700 | $ 1,936 | |
[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 June 30, 2016 and 2015, and December 31, 2015, the reserve for unfunded commitments was $22,000, $26,000 and $22,000, respectively. |
LOANS AND ALLOWANCE FOR LOAN 46
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Credit Risk Exposure Indicators by Portfolio Segment) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $ 2,585,300 | $ 2,490,206 | $ 1,807,007 |
Pass (Grades 1-6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,134,217 | 2,023,263 | |
Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 358,184 | 364,536 | |
Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 29,457 | 34,720 | |
Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 61,827 | 65,636 | |
Non-performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,615 | 2,051 | |
Residential Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 800,556 | 820,617 | 587,244 |
Residential Real Estate | Pass (Grades 1-6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 785,673 | 802,873 | |
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 | 3,025 | 3,282 | |
Residential Real Estate | Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 11,858 | 14,462 | |
Residential Real Estate | Non-performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Commercial Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,017,777 | 927,951 | 660,135 |
Commercial Real Estate | Pass (Grades 1-6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 957,457 | 868,664 | |
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 | 18,087 | 20,732 | |
Commercial Real Estate | Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 42,233 | 38,555 | |
Commercial Real Estate | Non-performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 336,517 | 297,721 | 262,187 |
Commercial | Pass (Grades 1-6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 322,590 | 281,553 | |
Commercial | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Commercial | Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 8,043 | 7,527 | |
Commercial | Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 5,884 | 8,641 | |
Commercial | Non-performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Home Equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 341,981 | 348,634 | 281,057 |
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 | 340,370 | 346,701 | |
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 | 1,611 | 1,933 | |
Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 17,818 | 17,953 | 16,384 |
Consumer | Pass (Grades 1-6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
Consumer | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 17,814 | 17,835 | |
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 | 4 | 118 | |
HPFC Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 70,651 | 77,330 | $ 0 |
HPFC Portfolio Segment [Member] | Pass (Grades 1-6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 68,497 | 70,173 | |
HPFC Portfolio Segment [Member] | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 0 | 0 | |
HPFC Portfolio Segment [Member] | Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 302 | 3,179 | |
HPFC Portfolio Segment [Member] | Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,852 | 3,978 | |
HPFC Portfolio Segment [Member] | Non-performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN 47
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Loan Aging Analysis by Portfolio Segment) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 29,309 | $ 23,212 | |
Current | 2,555,991 | 2,466,994 | |
Total Loans Outstanding | 2,585,300 | 2,490,206 | $ 1,807,007 |
Loans 90 Days Past Due and Accruing | 112 | 0 | |
Non-Accrual Loans | 23,713 | 18,322 | |
Residential Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 5,910 | 9,973 | |
Current | 794,646 | 810,644 | |
Total Loans Outstanding | 800,556 | 820,617 | 587,244 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 4,697 | 7,253 | |
Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 15,761 | 8,230 | |
Current | 1,002,016 | 919,721 | |
Total Loans Outstanding | 1,017,777 | 927,951 | 660,135 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 13,752 | 4,529 | |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4,130 | 1,819 | |
Current | 332,387 | 295,902 | |
Total Loans Outstanding | 336,517 | 297,721 | 262,187 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 3,539 | 4,489 | |
Home Equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,391 | 2,788 | |
Current | 339,590 | 345,846 | |
Total Loans Outstanding | 341,981 | 348,634 | 281,057 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 1,611 | 1,933 | |
Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 20 | 237 | |
Current | 17,798 | 17,716 | |
Total Loans Outstanding | 17,818 | 17,953 | 16,384 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 4 | 118 | |
HPFC Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,097 | 165 | |
Current | 69,554 | 77,165 | |
Total Loans Outstanding | 70,651 | 77,330 | $ 0 |
Loans 90 Days Past Due and Accruing | 112 | 0 | |
Non-Accrual Loans | 110 | 0 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 8,318 | 8,731 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,862 | 3,325 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,519 | 4,219 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,296 | 267 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Home Equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 941 | 643 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 13 | 112 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | HPFC Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 687 | 165 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 13,399 | 4,195 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 456 | 571 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 12,516 | 2,427 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 78 | 550 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Home Equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 161 | 640 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 7 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | HPFC Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 188 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 7,592 | 10,286 | |
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 | 3,592 | 6,077 | |
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 | 1,726 | 1,584 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 756 | 1,002 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Home Equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,289 | 1,505 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 7 | 118 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | HPFC Portfolio Segment [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 222 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN 48
LOANS AND ALLOWANCE FOR LOAN LOSSES (Summary of All Troubled Debt Restructuring Loans) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2016USD ($)loan | Dec. 31, 2015USD ($)loan | |
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 32 | 38 | |
Recorded Investment | $ 4,632 | $ 5,277 | |
Specific Reserve | $ 497 | $ 603 | |
Number of Contracts | 0 | 0 | |
Residential Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 21 | 22 | |
Recorded Investment | $ 3,273 | $ 3,398 | |
Specific Reserve | $ 497 | $ 544 | |
Commercial Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 3 | 6 | |
Recorded Investment | $ 1,024 | $ 1,459 | |
Specific Reserve | $ 0 | $ 48 | |
Commercial | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 7 | 9 | |
Recorded Investment | $ 316 | $ 399 | |
Specific Reserve | $ 0 | $ 11 | |
Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 1 | 1 | |
Recorded Investment | $ 19 | $ 21 | |
Specific Reserve | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN 49
LOANS AND ALLOWANCE FOR LOAN LOSSES (Summary of Impaired Loan Balances and Associated Allowance by Portfolio Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment - with an allowance recorded | $ 6,213 | $ 5,239 | $ 6,213 | $ 5,239 | $ 5,475 |
Unpaid Principal Balance - with an allowance recorded | 6,213 | 5,272 | 6,213 | 5,272 | 5,507 |
Related Allowance | 2,015 | 1,267 | 2,015 | 1,267 | 1,369 |
Average Recorded Investment - with an allowance recorded | 5,210 | 4,855 | 5,043 | 4,879 | 9,857 |
Interest Income Recognized - with an allowance recorded | 25 | 28 | 52 | 57 | 114 |
Recorded Investment - without allowance recorded | 5,024 | 5,300 | 5,024 | 5,300 | 9,760 |
Unpaid Principal Balance - without allowance recorded | 6,323 | 6,197 | 6,323 | 6,197 | 12,942 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | 0 | 0 | |
Average Recorded Investment - without allowance recorded | 9,931 | 5,467 | 8,499 | 5,236 | 6,695 |
Interest Income Recognized - without allowance recorded | 20 | 33 | 37 | 47 | 90 |
Impaired Financing Receivable, Recorded Investment | 11,237 | 10,539 | 11,237 | 10,539 | 15,235 |
Impaired financing receivable, unpaid principal balance | 12,536 | 11,469 | 12,536 | 11,469 | 18,449 |
Impaired Financing Receivable, Average Recorded Investment | 15,141 | 10,322 | 13,542 | 10,115 | 16,552 |
Impaired Financing Receivable, Interest Income, Accrual Method | 45 | 61 | 89 | 104 | 204 |
Residential Real Estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment - with an allowance recorded | 3,067 | 4,111 | 3,067 | 4,111 | 3,191 |
Unpaid Principal Balance - with an allowance recorded | 3,067 | 4,111 | 3,067 | 4,111 | 3,191 |
Related Allowance | 497 | 724 | 497 | 724 | 544 |
Average Recorded Investment - with an allowance recorded | 3,156 | 4,298 | 3,137 | 4,187 | 6,064 |
Interest Income Recognized - with an allowance recorded | 25 | 27 | 52 | 56 | 112 |
Recorded Investment - without allowance recorded | 1,859 | 1,451 | 1,859 | 1,451 | 2,835 |
Unpaid Principal Balance - without allowance recorded | 2,347 | 1,865 | 2,347 | 1,865 | 4,353 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | 0 | 0 | |
Average Recorded Investment - without allowance recorded | 3,071 | 1,663 | 2,547 | 1,553 | 2,175 |
Interest Income Recognized - without allowance recorded | 4 | 2 | 4 | 4 | 8 |
Commercial Real Estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment - with an allowance recorded | 99 | 468 | 99 | 468 | 1,825 |
Unpaid Principal Balance - with an allowance recorded | 99 | 501 | 99 | 501 | 1,857 |
Related Allowance | 29 | 240 | 29 | 240 | 644 |
Average Recorded Investment - with an allowance recorded | 1,256 | 154 | 847 | 223 | 1,753 |
Recorded Investment - without allowance recorded | 2,241 | 2,566 | 2,241 | 2,566 | 2,785 |
Unpaid Principal Balance - without allowance recorded | 2,765 | 2,656 | 2,765 | 2,656 | 3,426 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | 0 | 0 | |
Average Recorded Investment - without allowance recorded | 2,655 | 2,769 | 2,475 | 2,437 | 2,719 |
Interest Income Recognized - without allowance recorded | 23 | 27 | 25 | 35 | 65 |
Commercial | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment - with an allowance recorded | 2,744 | 217 | 2,744 | 217 | 156 |
Unpaid Principal Balance - with an allowance recorded | 2,744 | 217 | 2,744 | 217 | 156 |
Related Allowance | 1,400 | 136 | 1,400 | 136 | 92 |
Average Recorded Investment - with an allowance recorded | 239 | 213 | 633 | 228 | 945 |
Interest Income Recognized - with an allowance recorded | 1 | 1 | 2 | ||
Recorded Investment - without allowance recorded | 717 | 583 | 717 | 583 | 3,781 |
Unpaid Principal Balance - without allowance recorded | 814 | 712 | 814 | 712 | 4,325 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | 0 | 0 | |
Average Recorded Investment - without allowance recorded | 3,978 | 544 | 3,281 | 585 | 1,412 |
Interest Income Recognized - without allowance recorded | (3) | 4 | 8 | 8 | 17 |
Home Equity | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment - with an allowance recorded | 303 | 303 | 303 | 303 | 303 |
Unpaid Principal Balance - with an allowance recorded | 303 | 303 | 303 | 303 | 303 |
Related Allowance | 89 | 89 | 89 | 89 | 89 |
Average Recorded Investment - with an allowance recorded | 303 | 50 | 309 | 101 | 900 |
Recorded Investment - without allowance recorded | 200 | 683 | 200 | 683 | 285 |
Unpaid Principal Balance - without allowance recorded | 387 | 927 | 387 | 927 | 688 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | 0 | 0 | |
Average Recorded Investment - without allowance recorded | 220 | 474 | 178 | 644 | 369 |
Interest Income Recognized - without allowance recorded | (4) | ||||
Consumer | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment - with an allowance recorded | 0 | 140 | 0 | 140 | 0 |
Unpaid Principal Balance - with an allowance recorded | 0 | 140 | 0 | 140 | 0 |
Related Allowance | 0 | 78 | 0 | 78 | 0 |
Average Recorded Investment - with an allowance recorded | 140 | (11) | 140 | 195 | |
Recorded Investment - without allowance recorded | 7 | 17 | 7 | 17 | 74 |
Unpaid Principal Balance - without allowance recorded | 10 | 37 | 10 | 37 | 150 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | 0 | 0 | |
Average Recorded Investment - without allowance recorded | 7 | 17 | 18 | 17 | 20 |
HPFC Portfolio Segment [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment - with an allowance recorded | 0 | 0 | 0 | 0 | 0 |
Unpaid Principal Balance - with an allowance recorded | 0 | 0 | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 | 0 | 0 |
Average Recorded Investment - with an allowance recorded | 256 | 128 | 0 | ||
Recorded Investment - without allowance recorded | 0 | 0 | 0 | 0 | 0 |
Unpaid Principal Balance - without allowance recorded | 0 | 0 | 0 | 0 | 0 |
Impaired Financing Receivable With No Related Allowance Related Allowance | $ 0 | $ 0 | $ 0 | $ 0 | |
Average Recorded Investment - without allowance recorded | $ 0 |
LOANS AND ALLOWANCE FOR LOAN 50
LOANS AND ALLOWANCE FOR LOAN LOSSES (Narrative) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2016USD ($)propertyloan | Jun. 30, 2015USD ($)loan | Jun. 30, 2016USD ($)propertyloan | Jun. 30, 2015USD ($)loan | Dec. 31, 2015USD ($)property | Mar. 31, 2016USD ($) | Oct. 16, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Provision for Loan Losses Period Increase (Decrease) | $ 2,600,000 | $ 3,000,000 | ||||||||
Loans and Leases Receivable, Net Amount, Commercial | $ 23,713,000 | $ 23,713,000 | $ 18,322,000 | |||||||
Loans and Leases Period Increase (Decrease) | $ 778,300,000 | |||||||||
Number of Loans | 2 | 2 | ||||||||
Financing Receivable, Allowance for Credit Losses | $ 23,717,000 | $ 21,194,000 | $ 23,717,000 | $ 21,194,000 | 21,166,000 | $ 21,339,000 | $ 21,265,000 | $ 21,116,000 | ||
Financing Receivable, Modifications, Number of Contracts | 0 | 0 | ||||||||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | loan | 0 | 0 | 0 | 0 | ||||||
Interest lost on nonaccrual loans | $ 240,000 | $ 129,000 | $ 424,000 | $ 272,000 | ||||||
Loans and Leases Receivable, Impaired, Commitment to Lend | 0 | 0 | 0 | |||||||
Proceeds from the sale of mortgage loans | 97,375,000 | 12,833,000 | ||||||||
Gain on sale of mortgage loans | 2,166,000 | 292,000 | ||||||||
Loans held for sale | 22,928,000 | 22,928,000 | 10,958,000 | |||||||
Other real estate owned | 855,000 | 855,000 | 1,304,000 | |||||||
FHLB advances, general debt obligations, pledged collateral | 1,100,000,000 | 1,100,000,000 | 1,100,000,000 | |||||||
Financing Receivable, Allowance for Credit Losses, Write-downs | (626,000) | (474,000) | (1,427,000) | (898,000) | (2,616,000) | |||||
Recoveries | 150,000 | 152,000 | 254,000 | 285,000 | 728,000 | |||||
Provision (credit)(1) | [1] | 2,854,000 | 251,000 | 3,724,000 | 691,000 | 1,938,000 | ||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 2,015,000 | 1,267,000 | 2,015,000 | 1,267,000 | 1,369,000 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 21,702,000 | 19,927,000 | 21,702,000 | 19,927,000 | 19,797,000 | |||||
Financing Receivable, Individually Evaluated for Impairment | 11,237,000 | 10,539,000 | 11,237,000 | 10,539,000 | 15,235,000 | |||||
Financing Receivable, Collectively Evaluated for Impairment | 2,574,063,000 | 1,796,468,000 | 2,574,063,000 | 1,796,468,000 | 2,474,971,000 | |||||
Loans | $ 2,585,300,000 | 1,807,007,000 | 2,585,300,000 | 1,807,007,000 | 2,490,206,000 | |||||
Number of Portfolio Concentration Industries | 0 | |||||||||
Loans | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans restructured due to credit difficulties that are now performing | $ 4,500,000 | 4,500,000 | 4,800,000 | |||||||
Financing receivables impaired TDR non-performing | 147,000 | 147,000 | 446,000 | |||||||
Residential Real Estate | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans and Leases Receivable, Net Amount, Commercial | 4,697,000 | 4,697,000 | 7,253,000 | |||||||
Financing Receivable, Allowance for Credit Losses | 4,431,000 | 4,689,000 | 4,431,000 | 4,689,000 | 4,545,000 | 4,516,000 | 4,835,000 | 4,899,000 | ||
Mortgage Loans in Process of Foreclosure, Amount | 1,700,000 | 1,700,000 | 2,900,000 | |||||||
Financing Receivable, Allowance for Credit Losses, Write-downs | (19,000) | (179,000) | (229,000) | (292,000) | (801,000) | |||||
Recoveries | 31,000 | 17,000 | 71,000 | 20,000 | 55,000 | |||||
Provision (credit)(1) | (97,000) | 16,000 | 44,000 | 62,000 | 392,000 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 497,000 | 724,000 | 497,000 | 724,000 | 544,000 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 3,934,000 | 3,965,000 | 3,934,000 | 3,965,000 | 4,001,000 | |||||
Financing Receivable, Individually Evaluated for Impairment | 4,926,000 | 5,562,000 | 4,926,000 | 5,562,000 | 6,026,000 | |||||
Financing Receivable, Collectively Evaluated for Impairment | 795,630,000 | 581,682,000 | 795,630,000 | 581,682,000 | 814,591,000 | |||||
Loans | 800,556,000 | 587,244,000 | 800,556,000 | 587,244,000 | 820,617,000 | |||||
Commercial Real Estate | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans and Leases Receivable, Gross, Commercial | 11,700,000 | 11,700,000 | ||||||||
Loans and Leases Receivable, Net Amount, Commercial | $ 13,752,000 | $ 13,752,000 | 4,529,000 | |||||||
Number of Loans | loan | 1 | 1 | ||||||||
Financing Receivable, Allowance for Credit Losses | $ 11,559,000 | 8,160,000 | $ 11,559,000 | 8,160,000 | 10,432,000 | 10,380,000 | 8,234,000 | 7,951,000 | ||
Financing Receivable, Allowance for Credit Losses, Write-downs | (19,000) | (48,000) | (241,000) | (103,000) | (481,000) | |||||
Recoveries | 34,000 | 54,000 | 43,000 | 64,000 | 74,000 | |||||
Provision (credit)(1) | 1,164,000 | (80,000) | 1,325,000 | 248,000 | 2,888,000 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 29,000 | 240,000 | 29,000 | 240,000 | 644,000 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 11,530,000 | 7,920,000 | 11,530,000 | 7,920,000 | 9,788,000 | |||||
Financing Receivable, Individually Evaluated for Impairment | 2,340,000 | 3,034,000 | 2,340,000 | 3,034,000 | 4,610,000 | |||||
Financing Receivable, Collectively Evaluated for Impairment | 1,015,437,000 | 657,101,000 | 1,015,437,000 | 657,101,000 | 923,341,000 | |||||
Loans | 1,017,777,000 | 660,135,000 | 1,017,777,000 | 660,135,000 | 927,951,000 | |||||
Commercial | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Provision for Loan Losses Period Increase (Decrease) | 2,300,000 | |||||||||
Loans and Leases Receivable, Net Amount, Commercial | $ 3,539,000 | $ 3,539,000 | 4,489,000 | |||||||
Number of Loans | loan | 1 | 1 | ||||||||
Financing Receivable, Allowance for Credit Losses | $ 4,558,000 | 3,315,000 | $ 4,558,000 | 3,315,000 | 3,241,000 | 3,298,000 | 3,427,000 | 3,354,000 | ||
Financing Receivable, Allowance for Credit Losses, Write-downs | (203,000) | (84,000) | (429,000) | (243,000) | (655,000) | |||||
Recoveries | 82,000 | 78,000 | 134,000 | 182,000 | 389,000 | |||||
Provision (credit)(1) | 1,381,000 | (106,000) | 1,612,000 | 22,000 | 153,000 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 1,400,000 | 136,000 | 1,400,000 | 136,000 | 92,000 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 3,158,000 | 3,179,000 | 3,158,000 | 3,179,000 | 3,149,000 | |||||
Financing Receivable, Individually Evaluated for Impairment | 3,461,000 | 800,000 | 3,461,000 | 800,000 | 3,937,000 | |||||
Financing Receivable, Collectively Evaluated for Impairment | 333,056,000 | 261,387,000 | 333,056,000 | 261,387,000 | 293,784,000 | |||||
Loans | 336,517,000 | 262,187,000 | 336,517,000 | 262,187,000 | 297,721,000 | |||||
Home Equity | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans and Leases Receivable, Net Amount, Commercial | 1,611,000 | 1,611,000 | 1,933,000 | |||||||
Financing Receivable, Allowance for Credit Losses | 2,946,000 | 2,144,000 | 2,946,000 | 2,144,000 | 2,731,000 | 2,622,000 | 2,247,000 | 2,247,000 | ||
Financing Receivable, Allowance for Credit Losses, Write-downs | (57,000) | (152,000) | (185,000) | (241,000) | (525,000) | |||||
Recoveries | 1,000 | 0 | 2,000 | 5,000 | 188,000 | |||||
Provision (credit)(1) | 380,000 | 49,000 | 398,000 | 133,000 | 821,000 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 89,000 | 89,000 | 89,000 | 89,000 | 89,000 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 2,857,000 | 2,055,000 | 2,857,000 | 2,055,000 | 2,642,000 | |||||
Financing Receivable, Individually Evaluated for Impairment | 503,000 | 986,000 | 503,000 | 986,000 | 588,000 | |||||
Financing Receivable, Collectively Evaluated for Impairment | 341,478,000 | 280,071,000 | 341,478,000 | 280,071,000 | 348,046,000 | |||||
Loans | 341,981,000 | 281,057,000 | 341,981,000 | 281,057,000 | 348,634,000 | |||||
Consumer | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans and Leases Receivable, Net Amount, Commercial | 4,000 | 4,000 | 118,000 | |||||||
Financing Receivable, Allowance for Credit Losses | $ 193,000 | 268,000 | $ 193,000 | 268,000 | $ 193,000 | 182,000 | 270,000 | 281,000 | ||
Loans in foreclosure percentage of non-performing loans | 27.00% | 27.00% | 32.00% | |||||||
Financing Receivable, Allowance for Credit Losses, Write-downs | $ (26,000) | (11,000) | $ (41,000) | (19,000) | $ (154,000) | |||||
Recoveries | 2,000 | 3,000 | 4,000 | 14,000 | 22,000 | |||||
Provision (credit)(1) | 35,000 | 6,000 | 37,000 | (8,000) | 44,000 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 78,000 | 0 | 78,000 | 0 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 193,000 | 190,000 | 193,000 | 190,000 | 193,000 | |||||
Financing Receivable, Individually Evaluated for Impairment | 7,000 | 157,000 | 7,000 | 157,000 | 74,000 | |||||
Financing Receivable, Collectively Evaluated for Impairment | 17,811,000 | 16,227,000 | 17,811,000 | 16,227,000 | 17,879,000 | |||||
Loans | 17,818,000 | 16,384,000 | 17,818,000 | 16,384,000 | 17,953,000 | |||||
HPFC Portfolio Segment [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans and Leases Receivable, Net Amount, Commercial | 110,000 | 110,000 | 0 | |||||||
Financing Receivable, Allowance for Credit Losses | 30,000 | 0 | 30,000 | 0 | 24,000 | 341,000 | 0 | 0 | ||
Financing Receivable, Allowance for Credit Losses, Write-downs | (302,000) | 0 | (302,000) | 0 | 0 | |||||
Recoveries | 0 | 0 | 0 | 0 | 0 | |||||
Provision (credit)(1) | (9,000) | 0 | 308,000 | 0 | 24,000 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 30,000 | 0 | 30,000 | 0 | 24,000 | |||||
Financing Receivable, Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 | |||||
Financing Receivable, Collectively Evaluated for Impairment | 70,651,000 | 0 | 70,651,000 | 0 | 77,330,000 | |||||
Loans | 70,651,000 | 0 | 70,651,000 | 0 | 77,330,000 | |||||
Unallocated | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Financing Receivable, Allowance for Credit Losses | 0 | 2,618,000 | 0 | 2,618,000 | 0 | $ 0 | $ 2,252,000 | $ 2,384,000 | ||
Financing Receivable, Allowance for Credit Losses, Write-downs | 0 | 0 | 0 | 0 | 0 | |||||
Recoveries | 0 | 0 | 0 | 0 | 0 | |||||
Provision (credit)(1) | 0 | 366,000 | 0 | 234,000 | (2,384,000) | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 0 | 2,618,000 | 0 | 2,618,000 | 0 | |||||
Financing Receivable, Individually Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 | |||||
Financing Receivable, Collectively Evaluated for Impairment | 0 | 0 | 0 | 0 | 0 | |||||
Loans | $ 0 | 0 | $ 0 | 0 | $ 0 | |||||
Commercial Real Estate | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Number of real estate properties | property | 4 | 4 | 7 | |||||||
Other real estate owned | $ 775,000 | $ 775,000 | $ 1,000,000 | |||||||
Residential Real Estate | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Number of real estate properties | property | 2 | 2 | 2 | |||||||
Other real estate owned | $ 80,000 | $ 80,000 | $ 241,000 | |||||||
Fixed Rate Residential Mortgage | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Proceeds from the sale of mortgage loans | 56,300,000 | 7,700,000 | 95,200,000 | 12,500,000 | ||||||
Gain on sale of mortgage loans | 1,300,000 | 158,000 | 2,200,000 | 288,000 | ||||||
Loans held for sale | 22,600,000 | 22,600,000 | 10,800,000 | |||||||
Nonoperating Income (Expense) | Fixed Rate Residential Mortgage | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Gain on sale of mortgage loans | $ 147,000 | $ 12,000 | $ 153,000 | 18,000 | ||||||
Minimum [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Number of Months | 18 | 18 | ||||||||
Financing Receivable, Individually Evaluated for Impairment | $ 250,000 | $ 250,000 | ||||||||
Minimum [Member] | HPFC Portfolio Segment [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
term to maturity | 7 years | |||||||||
Maximum [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Number of Months | 24 | 24 | ||||||||
Maximum [Member] | HPFC Portfolio Segment [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
term to maturity | 10 years | |||||||||
Non-Residential Building Operators Industry Sector | Loan Concentration Risk | Total Loan Portfolio | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Concentration risk (percentage) | 12.00% | |||||||||
Non-Residential Building Operators Industry Sector | Loan Concentration Risk | Commercial Real Estate | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Concentration risk (percentage) | 30.00% | |||||||||
HPFC Subsidiary [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Number of days past due | 45 days | |||||||||
Estimate of Fair Value Measurement [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans and loans held for sale | $ 10,400,000 | $ 10,400,000 | $ 13,100,000 | |||||||
SBM Financial, Inc. [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans and Leases Period Increase (Decrease) | $ 615,400,000 | |||||||||
Loans and loans held for sale | $ 628,030,000 | |||||||||
SBM Financial, Inc. [Member] | Estimate of Fair Value Measurement [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Loans and loans held for sale | $ (11,497,000) | |||||||||
[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 June 30, 2016 and 2015, and December 31, 2015, the reserve for unfunded commitments was $22,000, $26,000 and $22,000, respectively. |
SBM ACQUISITION - NARRATIVE (De
SBM ACQUISITION - NARRATIVE (Details) - USD ($) | Oct. 16, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||||
Goodwill, Period Increase (Decrease) | $ 960,000 | |||||
Assets | 3,910,386,000 | $ 3,910,386,000 | $ 3,709,344,000 | |||
Loans and Leases Receivable, Net Amount | 2,561,583,000 | 2,561,583,000 | 2,469,040,000 | |||
Deposits | $ 2,773,487,000 | $ 2,773,487,000 | $ 2,726,379,000 | |||
Common stock, outstanding (shares) | 10,281,113 | 10,281,113 | 10,220,478 | |||
Merger and acquisition costs | $ 177,000 | $ 128,000 | $ 821,000 | $ 863,000 | ||
Business Combination Provisional Information Initial Accounting Incomplete Adjustment Impact on Earnings | 0 | |||||
SBM Financial, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill, Period Increase (Decrease) | (960,000) | |||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Assets | 137,000 | |||||
Consideration transferred | $ 136,676,000 | |||||
Cash | 26,125,000 | |||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 108,561,000 | |||||
Business Combination Provisional Information Initial Accounting Incomplete Adjustment Other Assets | 157,000 | |||||
Business Combination Provisional Information Initial Accounting Incomplete Adjustment Deferred Tax Asset | $ 666,000 | |||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 2,749,762 | |||||
Share Price | $ 39.48 | |||||
Nonqualified Stock Options [Member] | SBM Financial, Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 1,990,000 |
SBM ACQUISITION - Schedule of A
SBM ACQUISITION - Schedule of Assets Aquired and Liabilities Assumed (Details) - USD ($) | Oct. 16, 2015 | Jun. 30, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||
Business Combination Provisional Information Initial Accounting Incomplete Adjustment Impact on Earnings | $ 0 | ||
Goodwill | 94,697,000 | $ 95,657,000 | |
SBM Financial, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Cash | $ 26,125,000 | ||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | 108,561,000 | ||
Total consideration paid | 136,676,000 | ||
Loans and loans held for sale | 628,030,000 | ||
Cash and due from banks | 86,042,000 | ||
Investments | 39,742,000 | ||
Deferred tax assets | 25,782,000 | ||
Premises and equipment | 23,944,000 | ||
OREO | 729,000 | ||
Core deposit intangible assets | 6,608,000 | ||
Other assets | 5,408,000 | ||
Deposits and borrowings | 721,186,000 | ||
Other liabilities | 8,314,000 | ||
Total identified assets acquired and liabilities assumed, at fair value | 86,785,000 | ||
Goodwill | 49,891,000 | ||
Predecessor [Member] | SBM Financial, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Loans and loans held for sale | 639,390,000 | ||
Cash and due from banks | 86,042,000 | ||
Investments | 39,716,000 | ||
Deferred tax assets | 26,293,000 | ||
Premises and equipment | 16,851,000 | ||
OREO | 2,530,000 | ||
Core deposit intangible assets | 0 | ||
Other assets | 5,421,000 | ||
Deposits and borrowings | 719,640,000 | ||
Other liabilities | 8,512,000 | ||
Total identified assets acquired and liabilities assumed, at fair value | 88,091,000 | ||
Scenario, Adjustment [Member] | SBM Financial, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Loans and loans held for sale | 137,000 | ||
Cash and due from banks | 0 | ||
Investments | 0 | ||
Deferred tax assets | 666,000 | ||
Premises and equipment | 0 | ||
OREO | 0 | ||
Core deposit intangible assets | 0 | ||
Other assets | 157,000 | ||
Deposits and borrowings | 0 | ||
Other liabilities | 0 | ||
Total identified assets acquired and liabilities assumed, at fair value | 960,000 | ||
Nonqualified Stock Options [Member] | SBM Financial, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | 1,990,000 | ||
Estimate of Fair Value Measurement [Member] | |||
Business Acquisition [Line Items] | |||
Loans and loans held for sale | $ 10,400,000 | $ 13,100,000 | |
Estimate of Fair Value Measurement [Member] | SBM Financial, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Loans and loans held for sale | (11,497,000) | ||
Cash and due from banks | 0 | ||
Investments | 26,000 | ||
Deferred tax assets | (1,177,000) | ||
Premises and equipment | 7,093,000 | ||
OREO | (1,801,000) | ||
Core deposit intangible assets | 6,608,000 | ||
Other assets | (170,000) | ||
Deposits and borrowings | 1,546,000 | ||
Other liabilities | (198,000) | ||
Total identified assets acquired and liabilities assumed, at fair value | $ (2,266,000) |
GOODWILL AND OTHER INTANGIBLE53
GOODWILL AND OTHER INTANGIBLE ASSESTS (Schedule of Changes in Goodwill) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Oct. 16, 2015 | |
Goodwill [Line Items] | ||||
Goodwill, gross | $ 99,227 | |||
Accumulated impairment losses | (3,570) | |||
Reported goodwill | $ 94,697 | $ 94,697 | 95,657 | |
Goodwill, Period Increase (Decrease) | (960) | |||
Banking | ||||
Goodwill [Line Items] | ||||
Goodwill, gross | 91,753 | |||
Accumulated impairment losses | 0 | |||
Reported goodwill | 90,793 | 90,793 | ||
Goodwill, Period Increase (Decrease) | (960) | |||
Financial Services | ||||
Goodwill [Line Items] | ||||
Goodwill, gross | 7,474 | |||
Accumulated impairment losses | (3,570) | |||
Reported goodwill | 3,904 | 3,904 | ||
Goodwill, Period Increase (Decrease) | $ 0 | |||
Banking | ||||
Goodwill [Line Items] | ||||
Reported goodwill | 91,753 | |||
Financial Services | ||||
Goodwill [Line Items] | ||||
Reported goodwill | $ 3,904 | |||
SBM Financial, Inc. [Member] | ||||
Goodwill [Line Items] | ||||
Reported goodwill | $ 49,891 | |||
Goodwill, Period Increase (Decrease) | $ 960 | |||
Loans and loans held for sale | 628,030 | |||
Other assets | 5,408 | |||
Deferred tax assets | $ 25,782 |
GOODWILL AND OTHER INTANGIBLE54
GOODWILL AND OTHER INTANGIBLE ASSESTS (Schedule of Changes in Core Deposit Intangible and Trust Relationship Intangibles) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Total | ||||
Beginning Balance | $ 8,667 | |||
Ending Balance | $ 7,715 | 7,715 | ||
Accumulated Amortization | ||||
2016 amortization | (476) | $ (287) | (952) | $ (574) |
Net | ||||
2016 amortization | (476) | $ (287) | (952) | $ (574) |
Ending Balance | 7,715 | 7,715 | ||
Core Deposit Intangible | ||||
Total | ||||
Beginning Balance | 23,908 | |||
Ending Balance | 23,908 | 23,908 | ||
Accumulated Amortization | ||||
Beginning Balance | (15,392) | |||
2016 amortization | (914) | |||
Ending Balance | (16,306) | (16,306) | ||
Net | ||||
Beginning Balance | 8,516 | |||
2016 amortization | (914) | |||
Ending Balance | 7,602 | 7,602 | ||
Trust Relationship Intangible | ||||
Total | ||||
Beginning Balance | 753 | |||
Ending Balance | 753 | 753 | ||
Accumulated Amortization | ||||
Beginning Balance | (602) | |||
2016 amortization | (38) | |||
Ending Balance | (640) | (640) | ||
Net | ||||
Beginning Balance | 151 | |||
2016 amortization | (38) | |||
Ending Balance | $ 113 | $ 113 |
GOODWILL AND OTHER INTANGIBLE55
GOODWILL AND OTHER INTANGIBLE ASSESTS (Schedule of Expected Amortization of Intangible Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 951 | |
2,016 | 1,811 | |
2,017 | 725 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 705 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 682 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 2,841 | |
Total | 7,715 | |
Core Deposit Intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 914 | |
2,016 | 1,735 | |
2,017 | 725 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 705 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 682 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 2,841 | |
Total | 7,602 | $ 8,516 |
Trust Relationship Intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 37 | |
2,016 | 76 | |
2,017 | 0 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 0 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 0 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 0 | |
Total | $ 113 | $ 151 |
REGULATORY CAPITAL (Details)
REGULATORY CAPITAL (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Oct. 08, 2015 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Subordinated debentures | $ 58,677 | $ 58,599 | $ 15,000 |
Capital | $ 351,791 | $ 335,740 | |
Capital to Risk Weighted Assets | 12.94% | 12.98% | |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.625% | 8.00% | |
Tier One Risk Based Capital | $ 313,052 | $ 299,552 | |
Tier One Risk Based Capital to Risk Weighted Assets | 11.51% | 11.58% | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.625% | 6.00% | |
Common equity tier I capital | $ 278,673 | $ 269,350 | |
Common Equity Tier I Risk Based Capital Ratio | 10.25% | 10.42% | |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 5.125% | 4.50% | |
Tier One Leverage Capital | $ 313,052 | $ 299,552 | |
Excess Tier One Leverage Capital to Average Assets | 8.44% | 8.74% | |
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 | $ 2,500 | ||
Subsidiaries [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Capital | $ 317,484 | $ 304,847 | |
Capital to Risk Weighted Assets | 11.64% | 11.75% | |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.625% | 8.00% | |
Tier One Risk Based Capital | $ 293,745 | $ 283,659 | |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% | |
Tier One Risk Based Capital to Risk Weighted Assets | 10.77% | 10.93% | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.625% | 6.00% | |
Common equity tier I capital | $ 293,745 | $ 283,659 | |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 8.00% | |
Common Equity Tier I Risk Based Capital Ratio | 10.77% | 10.93% | |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 5.125% | 4.50% | |
Tier One Leverage Capital | $ 293,745 | $ 283,659 | |
Common Equity Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 6.50% | 6.50% | |
Excess Tier One Leverage Capital to Average Assets | 7.98% | 8.33% | |
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% | |
Subordinated Debt [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Subordinated debentures | $ 15,000 |
REGULATORY CAPITAL Regulatory C
REGULATORY CAPITAL Regulatory Capital Requirements (narrative) (Details) - USD ($) $ in Thousands | Oct. 08, 2015 | Jun. 30, 2016 | Dec. 31, 2015 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.625% | 8.00% | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.625% | 6.00% | |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 5.125% | 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 | $ 43,000 | $ 43,000 | |
Subordinated Debt | $ 15,000 | 58,677 | $ 58,599 |
Debt Instrument, Term | 10 years | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | ||
Acadia Trust [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Tier One Risk Based Capital Required for Capital Adequacy | $ 2,500 | ||
Acadia Trust [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.625% | 8.00% | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.625% | 6.00% | |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 5.125% | 4.50% | |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% | |
Minimum [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | ||
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | ||
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% | ||
Capital Conservation Buffer | 0.625% | ||
Tier II Capital [Domain] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Subordinated Debt | $ 15,000 | ||
Subordinated Debt [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Subordinated Debt | $ 15,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Contingency [Line Items] | ||||
Income tax expense | $ 4,258,000 | $ 3,341,000 | $ 7,700,000 | $ 6,064,000 |
Income before income taxes | $ 13,874,000 | $ 10,534,000 | $ 25,962,000 | $ 18,868,000 |
Effective tax rate | 30.70% | 31.70% | 29.70% | 32.10% |
Other Tax Expense (Benefit) | $ (65,000) | $ (364,000) | ||
Proceeds from Life Insurance Policies | 578,000,000 | 578,000 | ||
Bank Owned Life Insurance Income | 892,000 | $ 402,000 | 1,314,000 | $ 824,000 |
Other Operating Income (Expense) [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Bank Owned Life Insurance Income | $ 394,000,000 | $ 394,000 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Supplemental Executive Retirement Plan | |||||
Net periodic benefit cost | |||||
Service cost | $ 77 | $ 77 | $ 154 | $ 154 | |
Interest cost | 108 | 106 | 216 | 212 | |
Recognized net actuarial loss | 55 | 54 | 110 | 108 | |
Recognized prior service cost | 2 | 5 | 4 | 10 | |
Net period benefit cost | [1] | 242 | 242 | 484 | 484 |
Other Postretirement Benefit Plan | |||||
Net periodic benefit cost | |||||
Service cost | 15 | 15 | 30 | 30 | |
Interest cost | 38 | 29 | 76 | 58 | |
Recognized net actuarial loss | 8 | 6 | 16 | 12 | |
Recognized prior service cost | (6) | (6) | (12) | (12) | |
Net period benefit cost | [1] | $ 55 | $ 44 | $ 110 | $ 88 |
[1] | (1) Presented within the consolidated statements of income within salaries and employee benefits. |
STOCK-BASED COMPENSATION PLANS
STOCK-BASED COMPENSATION PLANS (Details) | May 01, 2016shares | Mar. 17, 2016$ / sharesshares | Mar. 15, 2016$ / sharesshares | Feb. 23, 2016$ / sharesshares | Jan. 04, 2016$ / sharesshares | Mar. 06, 2015 | Mar. 17, 2016$ / sharesshares | Apr. 29, 2016$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
retirement age of participant | 65 | |||||||
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 | 3,722 | 6,954 | 10,676 | |||||
Share-based compensation, purchase date (percent) | 33.00% | |||||||
Share price | $ / shares | $ 40.80 | $ 38.11 | $ 40.80 | |||||
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 | $ / shares | $ 40.55 | |||||||
Stock based compensation, shares granted | 2,730 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 1,161 | |||||||
Independent Directors' Equity Compensation Program | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock based compensation, shares granted | 4,876 | |||||||
Share price | $ / shares | $ 43.51 | |||||||
Share-based compensation, unrestricted stock awards issued | 5,793 | |||||||
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 | 7,165 | |||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period, weighted average grant date fair value | $ / shares | $ 40.80 | $ 43.30 | ||||||
Stock based compensation, vesting period | 5 years | 3 years | ||||||
Restricted Stock Units (RSUs) [Member] | Equity and Incentive Plan 2012 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock based compensation, vesting period | 3 years |
REPURCHASE AGREEMENTS (Details)
REPURCHASE AGREEMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Certificates of Deposit, at Carrying Value | $ 915 | $ 914 | ||
Securities Sold under Agreements to Repurchase | 212,579 | [1] | 215,041 | |
Overnight and Continuous | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Securities Sold under Agreements to Repurchase | [1] | 182,549 | 184,989 | |
Up to 30 Days | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Securities Sold under Agreements to Repurchase | [1] | 0 | 0 | |
30 - 90 Days | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Securities Sold under Agreements to Repurchase | [1] | 25,000 | 0 | |
Greater than 90 Days | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Securities Sold under Agreements to Repurchase | [1] | 5,030 | 30,052 | |
Wholesale Customer | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Securities Sold under Agreements to Repurchase | 30,030 | 30,052 | ||
Wholesale Customer | Overnight and Continuous | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Securities Sold under Agreements to Repurchase | 0 | 0 | ||
Wholesale Customer | Up to 30 Days | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Securities Sold under Agreements to Repurchase | 0 | 0 | ||
Wholesale Customer | 30 - 90 Days | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Securities Sold under Agreements to Repurchase | 25,000 | 0 | ||
Wholesale Customer | Greater than 90 Days | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Securities Sold under Agreements to Repurchase | 5,030 | 30,052 | ||
Wholesale Customer | 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 | 22,213 | 22,016 | ||
Wholesale Customer | 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 | 0 | ||
Wholesale Customer | 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 | 0 | ||
Wholesale Customer | 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 | 18,492 | 0 | ||
Wholesale Customer | 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 | 3,721 | 22,016 | ||
Wholesale Customer | 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 | 7,817 | 8,036 | ||
Wholesale Customer | 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 | 0 | ||
Wholesale Customer | 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 | 0 | ||
Wholesale Customer | 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 | 6,508 | 0 | ||
Wholesale Customer | 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 | 1,309 | 8,036 | ||
Retail Customers | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Securities Sold under Agreements to Repurchase | 182,549 | 184,989 | ||
Retail Customers | Overnight and Continuous | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Securities Sold under Agreements to Repurchase | 182,549 | 184,989 | ||
Retail Customers | Up to 30 Days | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Securities Sold under Agreements to Repurchase | 0 | 0 | ||
Retail Customers | 30 - 90 Days | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Securities Sold under Agreements to Repurchase | 0 | 0 | ||
Retail Customers | Greater than 90 Days | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Securities Sold under Agreements to Repurchase | 0 | 0 | ||
Retail Customers | Obligations of states and political subdivisions | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Securities Sold under Agreements to Repurchase | 570 | 556 | ||
Retail Customers | Obligations of states and political subdivisions | Overnight and Continuous | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Securities Sold under Agreements to Repurchase | 570 | 556 | ||
Retail Customers | 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 | 0 | ||
Retail Customers | Obligations of states and political subdivisions | 30 - 90 Days | ||||
Assets Sold under Agreements to Repurchase [Line Items] | ||||
Securities Sold under Agreements to Repurchase | 0 | 0 | ||
Retail Customers | 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 | 0 | ||
Retail Customers | 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 | 98,398 | 95,967 | ||
Retail Customers | 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 | 98,398 | 95,967 | ||
Retail Customers | 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 | 0 | ||
Retail Customers | 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 | 0 | ||
Retail Customers | 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 | 0 | ||
Retail Customers | 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 | 83,581 | 88,466 | ||
Retail Customers | 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 | 83,581 | 88,466 | ||
Retail Customers | 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 | 0 | ||
Retail Customers | 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 | 0 | ||
Retail Customers | 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 | $ 0 | ||
[1] | Total repurchase agreements are presented within other borrowed funds on the consolidated statements of condition. |
FAIR VALUE MEASUREMENT (Summary
FAIR VALUE MEASUREMENT (Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financial assets: | ||
Loans held for sale | $ 22,928 | $ 10,958 |
Available-for-sale Securities | 799,526 | 750,338 |
Customer loan swaps | 15,001 | 3,166 |
Financial liabilities: | ||
Customer loan swaps | 15,001 | 3,166 |
Obligations of U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 5,131 | 5,040 |
Obligations of states and political subdivisions | ||
Financial assets: | ||
Available-for-sale Securities | 10,044 | 17,694 |
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 470,471 | 419,046 |
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 307,612 | 306,857 |
Equity Securities [Member] | ||
Financial assets: | ||
Available-for-sale Securities | 645 | 705 |
Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Loans held for sale | 22,928 | 10,958 |
Customer loan swaps | 15,001 | 3,166 |
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | 523 | 139 |
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 9,229 | |
Customer loan swaps | 15,001 | 3,166 |
Fair Value, Measurements, Recurring | Obligations of U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 5,131 | 5,040 |
Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ||
Financial assets: | ||
Available-for-sale Securities | 10,044 | 17,694 |
Fair Value, Measurements, Recurring | Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 470,471 | 419,046 |
Fair Value, Measurements, Recurring | Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 307,612 | 306,857 |
Fair Value, Measurements, Recurring | Corporate Bond Securities [Member] | ||
Financial assets: | ||
Available-for-sale Securities | 5,623 | 996 |
Fair Value, Measurements, Recurring | Equity Securities [Member] | ||
Financial assets: | ||
Available-for-sale Securities | 645 | 705 |
Readily Available Market Prices (Level 1) | ||
Financial assets: | ||
Loans held for sale | 0 | 0 |
Available-for-sale Securities | 0 | 0 |
Customer loan swaps | 0 | 0 |
Financial liabilities: | ||
Customer loan swaps | 0 | 0 |
Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Loans held for sale | 0 | 0 |
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | 0 | 0 |
Financial liabilities: | ||
Customer loan swaps | 0 | 0 |
Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | Corporate Bond Securities [Member] | ||
Financial assets: | ||
Available-for-sale Securities | 0 | 0 |
Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | Equity Securities [Member] | ||
Financial assets: | ||
Available-for-sale Securities | 0 | 0 |
Observable Market Data (Level 2) | ||
Financial assets: | ||
Loans held for sale | 22,928 | 10,958 |
Available-for-sale Securities | 799,526 | 750,338 |
Customer loan swaps | 15,001 | 3,166 |
Financial liabilities: | ||
Customer loan swaps | 15,001 | 3,166 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Loans held for sale | 22,928 | 10,958 |
Customer loan swaps | 15,001 | 3,166 |
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | 523 | 139 |
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 9,229 | |
Customer loan swaps | 15,001 | 3,166 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Obligations of U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 5,131 | 5,040 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ||
Financial assets: | ||
Available-for-sale Securities | 10,044 | 17,694 |
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 | 470,471 | 419,046 |
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 | 307,612 | 306,857 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Corporate Bond Securities [Member] | ||
Financial assets: | ||
Available-for-sale Securities | 5,623 | 996 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Equity Securities [Member] | ||
Financial assets: | ||
Available-for-sale Securities | 645 | 705 |
Company Determined Fair Value (Level 3) | ||
Financial assets: | ||
Loans held for sale | 0 | 0 |
Available-for-sale Securities | 0 | 0 |
Customer loan swaps | 0 | 0 |
Financial liabilities: | ||
Customer loan swaps | 0 | 0 |
Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Loans held for sale | 0 | 0 |
Interest Rate Derivative Instruments Not Designated as Hedging Instruments at Fair Value, Net | 0 | 0 |
Financial liabilities: | ||
Customer loan swaps | 0 | 0 |
Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | Corporate Bond Securities [Member] | ||
Financial assets: | ||
Available-for-sale Securities | 0 | 0 |
Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | Equity Securities [Member] | ||
Financial assets: | ||
Available-for-sale Securities | 0 | 0 |
Interest rate swaps | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 13,265 | 9,229 |
Interest rate swaps | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 13,265 | |
Interest rate swaps | Readily Available Market Prices (Level 1) | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 0 | 0 |
Interest rate swaps | Observable Market Data (Level 2) | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 13,265 | 9,229 |
Interest rate swaps | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 13,265 | |
Interest rate swaps | Company Determined Fair Value (Level 3) | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 0 | 0 |
Forward-Starting Interest Rate Swap | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 1,172 | 576 |
Forward-Starting Interest Rate Swap | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 1,172 | 576 |
Forward-Starting Interest Rate Swap | Readily Available Market Prices (Level 1) | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 0 | 0 |
Forward-Starting Interest Rate Swap | Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 0 | 0 |
Forward-Starting Interest Rate Swap | Observable Market Data (Level 2) | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 1,172 | 576 |
Forward-Starting Interest Rate Swap | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 1,172 | 576 |
Forward-Starting Interest Rate Swap | Company Determined Fair Value (Level 3) | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 0 | 0 |
Forward-Starting Interest Rate Swap | Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT (Summa63
FAIR VALUE MEASUREMENT (Summary of Assets Measured at Fair Value on Non Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Collateral-dependent impaired loans | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | $ 522 | $ 1,971 | |
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 | 522 | 1,971 | |
MSRs | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | [1] | 1,369 | 440 |
MSRs | Fair Value, Measurements, Nonrecurring | Observable Market Data (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | [1] | 1,369 | 440 |
Other real estate owned | Company Determined Fair Value (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | 855 | 1,304 | |
Other real estate owned | Fair Value, Measurements, Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | |||
Fair Value | 855 | 1,304 | |
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 | $ 855 | $ 1,304 | |
[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 | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Impaired Loans Partially Charged Off | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value | $ 150 | $ 399 | |
Impaired Loans Partially Charged Off | Market Approach Valuation Technique | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Estimated selling cost | 0.00% | ||
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% | 0.00% | |
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 | 4.00% | 7.00% | |
Impaired Loans Specifically Reserved | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value | $ 372 | $ 1,572 | |
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 | 10.00% | ||
Impaired Loans Specifically Reserved | Market Approach Valuation Technique | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Management adjustment of appraisal | 50.00% | 57.00% | |
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 | 16.00% | 45.00% | |
Estimated selling cost | 10.00% | 10.00% | |
Other real estate owned | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value | $ 855 | $ 1,304 | |
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% | |
Other real estate owned | Market Approach Valuation Technique | Maximum | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Management adjustment of appraisal | 73.00% | 43.00% | |
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 | 10.00% | 18.00% | |
Estimated selling cost | 10.00% | 10.00% |
FAIR VALUE MEASUREMENT (Sched65
FAIR VALUE MEASUREMENT (Schedule of Carrying Amounts and Estimated Fair Value for Financial Instrument Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |||
Financial assets: | |||||
Cash and due from banks | $ 96,443 | $ 79,488 | |||
Available-for-sale Securities | 799,526 | 750,338 | |||
Held-to-maturity securities, at amortized cost | 93,609 | 84,144 | |||
Held-to-maturity Securities, Fair Value | 97,692 | 85,647 | |||
Loans held for sale | 22,928 | 10,958 | |||
Mortgage servicing rights | 1,864 | [1] | 2,947 | [2] | |
Interest receivable | 8,757 | 7,985 | |||
Customer loan swaps | 15,001 | 3,166 | |||
Derivative Asset | 523 | 139 | |||
Financial liabilities: | |||||
Deposits | 2,776,511 | 2,726,300 | |||
FHLB advances | 45,943 | 56,001 | |||
Commercial repurchase agreements | 30,909 | 30,931 | |||
Other borrowed funds | 558,059 | 428,778 | |||
Subordinated debentures | 40,800 | 42,950 | |||
Interest payable | 643 | 641 | |||
Customer loan swaps | 15,001 | 3,166 | |||
Residential Real Estate | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [3] | 815,775 | 820,774 | ||
Commercial Real Estate | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [3] | 993,814 | 911,316 | ||
Commercial | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [3],[4] | 405,395 | 371,854 | ||
Home Equity | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [3] | 339,449 | 348,963 | ||
Consumer | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [3] | 18,767 | 18,163 | ||
Readily Available Market Prices (Level 1) | |||||
Financial assets: | |||||
Cash and due from banks | 96,443 | 79,488 | |||
Available-for-sale Securities | 0 | 0 | |||
Held-to-maturity Securities, Fair Value | 0 | 0 | |||
Loans held for sale | 0 | 0 | |||
Mortgage servicing rights | 0 | [1] | 0 | [2] | |
Interest receivable | 0 | 0 | |||
Customer loan swaps | 0 | 0 | |||
Derivative Asset | 0 | 0 | |||
Financial liabilities: | |||||
Deposits | 0 | 0 | |||
FHLB advances | 0 | 0 | |||
Commercial repurchase agreements | 0 | 0 | |||
Other borrowed funds | 0 | ||||
Subordinated debentures | 0 | 0 | |||
Interest payable | 0 | 0 | |||
Customer loan swaps | 0 | 0 | |||
Readily Available Market Prices (Level 1) | Residential Real Estate | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [3] | 0 | 0 | ||
Readily Available Market Prices (Level 1) | Commercial Real Estate | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [3] | 0 | 0 | ||
Readily Available Market Prices (Level 1) | Commercial | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [3],[4] | 0 | 0 | ||
Readily Available Market Prices (Level 1) | Home Equity | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [3] | 0 | 0 | ||
Readily Available Market Prices (Level 1) | Consumer | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [3] | 0 | 0 | ||
Observable Market Data (Level 2) | |||||
Financial assets: | |||||
Cash and due from banks | 0 | 0 | |||
Available-for-sale Securities | 799,526 | 750,338 | |||
Held-to-maturity Securities, Fair Value | 97,692 | 85,647 | |||
Loans held for sale | 22,928 | 10,958 | |||
Mortgage servicing rights | 1,864 | [1] | 2,947 | [2] | |
Interest receivable | 8,757 | 7,985 | |||
Customer loan swaps | 15,001 | 3,166 | |||
Derivative Asset | 523 | 139 | |||
Financial liabilities: | |||||
Deposits | 2,776,511 | 2,726,300 | |||
FHLB advances | 45,943 | 56,001 | |||
Commercial repurchase agreements | 30,909 | 30,931 | |||
Other borrowed funds | 558,059 | 428,778 | |||
Subordinated debentures | 40,800 | 42,950 | |||
Interest payable | 643 | 641 | |||
Customer loan swaps | 15,001 | 3,166 | |||
Observable Market Data (Level 2) | Residential Real Estate | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [3] | 0 | 0 | ||
Observable Market Data (Level 2) | Commercial Real Estate | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [3] | 0 | 0 | ||
Observable Market Data (Level 2) | Commercial | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [3],[4] | 0 | 0 | ||
Observable Market Data (Level 2) | Home Equity | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [3] | 0 | 0 | ||
Observable Market Data (Level 2) | Consumer | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [3] | 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 | 0 | |||
Mortgage servicing rights | 0 | [1] | 0 | [2] | |
Interest receivable | 0 | 0 | |||
Customer loan swaps | 0 | 0 | |||
Derivative Asset | 0 | 0 | |||
Financial liabilities: | |||||
Deposits | 0 | 0 | |||
FHLB advances | 0 | 0 | |||
Commercial repurchase agreements | 0 | 0 | |||
Other borrowed funds | 0 | 0 | |||
Subordinated debentures | 0 | 0 | |||
Interest payable | 0 | 0 | |||
Customer loan swaps | 0 | 0 | |||
Company Determined Fair Value (Level 3) | Residential Real Estate | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [3] | 815,775 | 820,774 | ||
Company Determined Fair Value (Level 3) | Commercial Real Estate | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [3] | 993,814 | 911,316 | ||
Company Determined Fair Value (Level 3) | Commercial | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [3],[4] | 405,395 | 371,854 | ||
Company Determined Fair Value (Level 3) | Home Equity | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [3] | 339,449 | 348,963 | ||
Company Determined Fair Value (Level 3) | Consumer | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [3] | 18,767 | 18,163 | ||
Carrying Amount | |||||
Financial assets: | |||||
Cash and due from banks | 96,443 | 79,488 | |||
Available-for-sale Securities | 799,526 | 750,338 | |||
Held-to-maturity securities, at amortized cost | 93,609 | 84,144 | |||
Loans held for sale | 22,928 | 10,958 | |||
Mortgage servicing rights | 1,410 | [1] | 2,161 | [2] | |
Interest receivable | 8,757 | 7,985 | |||
Customer loan swaps | 15,001 | 3,166 | |||
Derivative Asset | 523 | 139 | |||
Financial liabilities: | |||||
Deposits | 2,773,487 | 2,726,379 | |||
FHLB advances | 45,000 | 55,000 | |||
Commercial repurchase agreements | 30,030 | 30,052 | |||
Other borrowed funds | 556,769 | 428,711 | |||
Subordinated debentures | 58,677 | 58,599 | |||
Interest payable | 643 | 641 | |||
Customer loan swaps | 15,001 | 3,166 | |||
Carrying Amount | Residential Real Estate | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [3] | 796,125 | 808,180 | ||
Carrying Amount | Commercial Real Estate | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [3] | 1,006,218 | 922,257 | ||
Carrying Amount | Commercial | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [3],[4] | 402,580 | 371,684 | ||
Carrying Amount | Home Equity | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [3] | 339,035 | 349,215 | ||
Carrying Amount | Consumer | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [3] | 17,625 | 17,704 | ||
Interest rate swaps | |||||
Financial liabilities: | |||||
Junior subordinated debt interest rate swaps | 13,265 | 9,229 | |||
Interest rate swaps | Readily Available Market Prices (Level 1) | |||||
Financial liabilities: | |||||
Junior subordinated debt interest rate swaps | 0 | 0 | |||
Interest rate swaps | Observable Market Data (Level 2) | |||||
Financial liabilities: | |||||
Junior subordinated debt interest rate swaps | 13,265 | 9,229 | |||
Interest rate swaps | Company Determined Fair Value (Level 3) | |||||
Financial liabilities: | |||||
Junior subordinated debt interest rate swaps | 0 | 0 | |||
Interest rate swaps | Carrying Amount | |||||
Financial liabilities: | |||||
Junior subordinated debt interest rate swaps | 13,265 | 9,229 | |||
Forward-Starting Interest Rate Swap | |||||
Financial liabilities: | |||||
Junior subordinated debt interest rate swaps | 1,172 | 576 | |||
Forward-Starting Interest Rate Swap | Readily Available Market Prices (Level 1) | |||||
Financial liabilities: | |||||
Junior subordinated debt interest rate swaps | 0 | 0 | |||
Forward-Starting Interest Rate Swap | Observable Market Data (Level 2) | |||||
Financial liabilities: | |||||
Junior subordinated debt interest rate swaps | 1,172 | 576 | |||
Forward-Starting Interest Rate Swap | Company Determined Fair Value (Level 3) | |||||
Financial liabilities: | |||||
Junior subordinated debt interest rate swaps | 0 | 0 | |||
Forward-Starting Interest Rate Swap | Carrying Amount | |||||
Financial liabilities: | |||||
Junior subordinated debt interest rate swaps | $ 1,172 | $ 576 | |||
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjIxZDllNWY4MmI1NTQ3ZmRiN2IwYTI4NmM2MzY3MWJhfFRleHRTZWxlY3Rpb246RTE2Qjc0RTc5MDBDNUU4Mzg2NjRBNUYxMEQzN0RGRjcM} | ||||
[2] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjIxZDllNWY4MmI1NTQ3ZmRiN2IwYTI4NmM2MzY3MWJhfFRleHRTZWxlY3Rpb246NDBERDFFNzYwQzU3NTMxRUJCRDM1M0JGODlFOTU0RTIM} | ||||
[3] | (1)The presented carrying amount is net of the allocated ALL. | ||||
[4] | (2) Includes the HPFC loan portfolio. |
FAIR VALUE MEASUREMENT (Narrati
FAIR VALUE MEASUREMENT (Narrative) (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financing Receivable, Individually Evaluated for Impairment | $ 11,237,000 | $ 15,235,000 | $ 10,539,000 |
Impaired financing receivable, unpaid principal balance | 12,536,000 | $ 18,449,000 | $ 11,469,000 |
Non-financial liabilities measured at fair value on recurring basis, net | 0 | ||
Non-financial liabilities measured at fair value on non-recurring basis | 0 | ||
Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financing Receivable, Individually Evaluated for Impairment | $ 250,000 |
COMMITMENTS AND CONTINGENCIES67
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2016USD ($)swap | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | ||
Other Commitments [Line Items] | |||||||
Loss Contingency Accrual | $ 0 | $ 0 | $ 0 | ||||
Loss on Cash Flow Hedge Ineffectiveness | $ 0 | $ 0 | |||||
Number of interest rate swap agreements | swap | 2 | ||||||
Derivative, Number of Instruments Held | 2 | 2 | |||||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings | $ 92,000 | $ 18,000 | |||||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | 2,100,000 | ||||||
Unrealized Gain (Loss) on Derivatives | $ 384,000 | $ 14,000 | |||||
Commercial Loan | |||||||
Other Commitments [Line Items] | |||||||
Cash held as collateral | 15,500,000 | 15,500,000 | |||||
Interest rate swaps | |||||||
Other Commitments [Line Items] | |||||||
Derivative Instrument Payment Of Interest Rate Swaps Designated As Cash Flow Hedges | 782,000 | $ 501,000 | |||||
Notional amount of derivative | 43,000,000 | 43,000,000 | 43,000,000 | ||||
Cash held as collateral | 13,800,000 | 13,800,000 | |||||
Forward-Starting Interest Rate Swap | |||||||
Other Commitments [Line Items] | |||||||
Derivative Instrument Payment Of Interest Rate Swaps Designated As Cash Flow Hedges | 205,000 | ||||||
Notional amount of derivative | 50,000,000 | 50,000,000 | $ 50,000,000 | ||||
Cash held as collateral | $ 1,200,000 | $ 1,200,000 | |||||
Federal home loan bank 30-day | Interest rate swaps | |||||||
Other Commitments [Line Items] | |||||||
Derivative, Number of Instruments Held | [1] | 44,000 | 44,000 | 28,000 | |||
Notional amount of derivative | [1] | $ 232,257,000 | $ 232,257,000 | $ 142,944,000 | |||
Commercial and Industrial Sector | Interest rate swaps | |||||||
Other Commitments [Line Items] | |||||||
Derivative, Number of Instruments Held | [2] | 44,000 | 44,000 | 28,000 | |||
Notional amount of derivative | [2] | $ 232,257,000 | $ 232,257,000 | $ 142,944,000 | |||
Contract One [Member] | Interest rate swaps | |||||||
Other Commitments [Line Items] | |||||||
Notional amount of derivative | $ 10,000,000 | 10,000,000 | |||||
Contract One [Member] | Forward-Starting Interest Rate Swap | |||||||
Other Commitments [Line Items] | |||||||
Number of interest rate swap agreements | swap | 1 | ||||||
Notional amount of derivative | $ 25,000,000 | $ 25,000,000 | |||||
[1] | Presented within other assets on the consolidated statements of condition. | ||||||
[2] | Presented within accrued interest and other liabilities on the consolidated statements of condition. |
COMMITMENTS AND CONTINGENCIES68
COMMITMENTS AND CONTINGENCIES (Summary of Contractual and Notional Amounts of Financial Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Customer loan swaps | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | $ 464,514 | $ 285,888 |
Forward-Starting Interest Rate Swap | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | 50,000 | 50,000 |
Interest rate swaps | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | 43,000 | 43,000 |
Interest rate lock commitments | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | 49,113 | 20,735 |
Other Commitments | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | 442 | 433 |
Letters of Credit | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | 3,009 | 4,468 |
Home Equity | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | 464,991 | 464,701 |
Commercial and commercial real estate | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | 52,268 | 94,791 |
Residential | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | $ 28,809 | $ 16,256 |
COMMITMENTS AND CONTINGENCIES69
COMMITMENTS AND CONTINGENCIES (Schedule of Swapped Variable Cost for Fixed Cost and Terms of Interest Rate Swap Agreements) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2015 | ||
Interest rate swaps | |||
Derivative [Line Items] | |||
Notional Amount | $ 43,000 | $ 43,000 | |
Derivative, fair value | [1] | (13,265) | (9,229) |
Interest rate swaps | Contract, One | |||
Derivative [Line Items] | |||
Notional Amount | $ 10,000 | ||
Trade Date | Mar. 18, 2009 | ||
Maturity Date | Jun. 30, 2021 | ||
Variable Index Received | 3 months | ||
Fixed Rate Paid | 5.09% | ||
Derivative, fair value | [1] | $ (1,354) | (1,038) |
Interest rate swaps | Contract, Two | |||
Derivative [Line Items] | |||
Notional Amount | $ 10,000 | ||
Trade Date | Jul. 8, 2009 | ||
Maturity Date | Jun. 30, 2029 | ||
Variable Index Received | 3 months | ||
Fixed Rate Paid | 5.84% | ||
Derivative, fair value | [1] | $ (3,583) | (2,537) |
Interest rate swaps | Contract, Three | |||
Derivative [Line Items] | |||
Notional Amount | $ 10,000 | ||
Trade Date | May 6, 2010 | ||
Maturity Date | Jun. 30, 2030 | ||
Variable Index Received | 3 months | ||
Fixed Rate Paid | 5.71% | ||
Derivative, fair value | [1] | $ (3,604) | (2,477) |
Interest rate swaps | Contract, Four | |||
Derivative [Line Items] | |||
Notional Amount | $ 5,000 | ||
Trade Date | Mar. 14, 2011 | ||
Maturity Date | Mar. 30, 2031 | ||
Variable Index Received | 3 months | ||
Fixed Rate Paid | 4.35% | ||
Derivative, fair value | [1] | $ (1,893) | (1,301) |
Interest rate swaps | Contract, Five | |||
Derivative [Line Items] | |||
Notional Amount | $ 8,000 | ||
Trade Date | May 4, 2011 | ||
Maturity Date | Jul. 7, 2031 | ||
Variable Index Received | 3 months | ||
Fixed Rate Paid | 4.14% | ||
Derivative, fair value | [1] | $ (2,831) | (1,876) |
Forward-Starting Interest Rate Swap | |||
Derivative [Line Items] | |||
Notional Amount | 50,000 | 50,000 | |
Derivative, fair value | [2] | (1,172) | (576) |
Forward-Starting Interest Rate Swap | Contract, One | |||
Derivative [Line Items] | |||
Notional Amount | $ 25,000 | ||
Trade Date | Feb. 25, 2015 | ||
Maturity Date | Feb. 25, 2018 | ||
Variable Index Received | 1 month | ||
Fixed Rate Paid | 1.54% | ||
Derivative, fair value | [2] | $ (421) | (230) |
Forward-Starting Interest Rate Swap | Contract, Two | |||
Derivative [Line Items] | |||
Notional Amount | $ 25,000 | ||
Trade Date | Feb. 25, 2015 | ||
Maturity Date | Feb. 25, 2019 | ||
Variable Index Received | 1 month | ||
Fixed Rate Paid | 1.74% | ||
Derivative, fair value | [2] | $ (751) | $ (346) |
[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 CONTINGENCIES C
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES Schedule of customer loan swaps (Details) $ in Thousands | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Derivative [Line Items] | ||||
Derivative, Number of Instruments Held | 2 | |||
Interest rate swaps | ||||
Derivative [Line Items] | ||||
Notional amount of derivative | $ 43,000 | $ 43,000 | ||
Derivative, fair value | [1] | $ (13,265) | $ (9,229) | |
Interest rate swaps | Federal home loan bank 30-day | ||||
Derivative [Line Items] | ||||
Derivative, Number of Instruments Held | [2] | 44 | 28 | |
Notional amount of derivative | [2] | $ 232,257 | $ 142,944 | |
Derivative, fair value | [2] | $ 15,001 | $ 3,166 | |
Commercial and Industrial Sector | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Derivative, Number of Instruments Held | [3] | 44 | 28 | |
Notional amount of derivative | [3] | $ 232,257 | $ 142,944 | |
Derivative, fair value | [3] | $ (15,001) | $ (3,166) | |
[1] | Presented within accrued interest and other liabilities on the consolidated statements of condition. | |||
[2] | Presented within other assets on the consolidated statements of condition. | |||
[3] | Presented within accrued interest and other liabilities on the consolidated statements of condition. |
COMMITMENTS AND CONTINGENCIES71
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES Schedule of interest rate lock commitments (Details) - Interest Rate Lock Commitments - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Other Commitments [Line Items] | ||
Notional amount of derivative | $ 49,113 | $ 20,735 |
Derivative, Fair Value, Net | $ 523 | $ 139 |
COMMITMENTS AND CONTINGENCIES72
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES Schedule of Derivatives Effects on OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Net change in unrealized losses on cash flow hedging derivatives, net of tax (effective portion) | $ (905) | $ 1,694 | $ (3,010) | $ 522 |
Net reclassification adjustment for effective portion of cash flow hedges included in interest expense (effective portion), gross | $ (622) | $ (158) | $ (987) | $ (501) |
RECENT ACCOUNTING PRONOUNCEME73
RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net income | $ 9,616 | $ 8,646 | $ 7,193 | $ 18,262 | $ 12,804 |
Earnings Per Share, Basic | $ 0.93 | $ 0.84 | $ 0.97 | $ 1.77 | $ 1.72 |
Earnings Per Share, Diluted | $ 0.92 | $ 0.84 | $ 0.96 | $ 1.76 | $ 1.71 |
As Previously Reported | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net income | $ 8,334 | ||||
Earnings Per Share, Basic | $ 0.81 | ||||
Earnings Per Share, Diluted | $ 0.81 | ||||
Change | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net income | $ 50 | $ 312 | $ 362 | ||
Earnings Per Share, Basic | $ 0.03 | $ 0.03 | $ 0.03 | ||
Earnings Per Share, Diluted | $ 0 | $ 0.03 | $ 0 |
RECENT ACCOUNTING PRONOUNCEME74
RECENT ACCOUNTING PRONOUNCEMENTS NEW ACCOUNTING PRONOUNCEMENTS (Narrative) (Details) (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($)$ / shares | Mar. 31, 2016USD ($)$ / shares | Jun. 30, 2015USD ($)$ / shares | Jun. 30, 2016USD ($)$ / shares | Jun. 30, 2015USD ($)$ / shares | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
number of accounting changes | 2 | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | $ 0 | ||||
Net income | $ 9,616,000 | $ 8,646,000 | $ 7,193,000 | $ 18,262,000 | $ 12,804,000 |
Earnings Per Share, Basic | $ / shares | $ 0.93 | $ 0.84 | $ 0.97 | $ 1.77 | $ 1.72 |
Earnings Per Share, Diluted | $ / shares | $ 0.92 | $ 0.84 | $ 0.96 | $ 1.76 | $ 1.71 |
Restatement Adjustment [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net income | $ 50,000 | $ 312,000 | $ 362,000 | ||
Earnings Per Share, Basic | $ / shares | $ 0.03 | $ 0.03 | $ 0.03 | ||
Earnings Per Share, Diluted | $ / shares | $ 0 | $ 0.03 | $ 0 | ||
Retained Earnings [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | $ (72,000) | ||||
Net income | $ 18,262,000 | $ 12,804,000 |
SUBSEQUENT EVENTS SUBSEQUENT EV
SUBSEQUENT EVENTS SUBSEQUENT EVENTS (Details) (Details) | Jul. 31, 2016 |
Disposal Group, Not Discontinued Operations [Member] | Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Number of Branches | 2 |