Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 27, 2018 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
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 | 15,566,603 |
CONSOLIDATED STATEMENTS OF COND
CONSOLIDATED STATEMENTS OF CONDITION (CURRENT PERIOD UNAUDITED) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 48,159 | $ 44,057 |
Interest-bearing deposits in other banks | 76,950 | 58,914 |
Cash | 125,109 | 102,971 |
Investments: | ||
Available-for-sale securities, at fair value | 796,687 | 789,899 |
Held-to-maturity securities, at amortized cost (fair value of $91.9 million and $94.9 million, respectively) | 93,192 | 94,073 |
Other investments | 23,774 | 23,670 |
Total investments | 913,653 | 907,642 |
Loans held for sale, at fair value | 9,548 | 8,103 |
Loans | 2,789,148 | 2,782,439 |
Less: allowance for loan losses | (22,990) | (24,171) |
Net loans | 2,766,158 | 2,758,268 |
Goodwill | 94,697 | 94,697 |
Other intangible assets | 4,774 | 4,955 |
Bank-owned life insurance | 88,097 | 87,489 |
Premises and equipment, net | 41,545 | 41,891 |
Deferred tax assets | 23,181 | 22,776 |
Other assets | 46,423 | 36,606 |
Total assets | 4,113,185 | 4,065,398 |
Deposits: | ||
Demand | 463,496 | 478,643 |
Interest checking | 840,054 | 855,570 |
Savings and money market | 1,005,329 | 985,508 |
Certificates of deposit | 471,155 | 475,010 |
Brokered deposits | 245,546 | 205,760 |
Total deposits | 3,025,580 | 3,000,491 |
Short-term borrowings | 552,624 | 541,796 |
Long-term borrowings | 10,773 | 10,791 |
Subordinated debentures | 58,950 | 58,911 |
Accrued interest and other liabilities | 61,203 | 49,996 |
Total liabilities | 3,709,130 | 3,661,985 |
Commitments and Contingencies | ||
Shareholders’ Equity | ||
Common stock, no par value: authorized 40,000,000 shares, issued and outstanding 15,565,868 and 15,524,704 on March 31, 2018 and December 31, 2017, respectively | 156,860 | 156,904 |
Retained earnings | 275,841 | 266,723 |
Accumulated other comprehensive loss: | ||
Net unrealized losses on available-for-sale debt securities, net of tax | (20,227) | (10,300) |
Net unrealized losses on cash flow hedging derivative instruments, net of tax | (4,547) | (5,926) |
Net unrecognized losses on postretirement plans, net of tax | (3,872) | (3,988) |
Total accumulated other comprehensive loss | (28,646) | (20,214) |
Total shareholders’ equity | 404,055 | 403,413 |
Total liabilities and shareholders’ equity | $ 4,113,185 | $ 4,065,398 |
CONSOLIDATED STATEMENTS OF CON3
CONSOLIDATED STATEMENTS OF CONDITION (CURRENT PERIOD UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Held-to-maturity Securities, Fair Value | $ 91,874 | $ 94,913 |
Common stock, no par value (dollars per share) | $ 0 | $ 0 |
Common stock, authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, issued (in shares) | 15,565,868 | 15,524,704 |
Common stock, outstanding (in shares) | 15,565,868 | 15,524,704 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Interest Income | ||
Interest and fees on loans | $ 29,834 | $ 27,062 |
Interest on U.S. government and sponsored enterprise obligations (taxable) | 4,225 | 4,256 |
Interest on state and political subdivision obligations (nontaxable) | 672 | 702 |
Interest on deposits in other banks and other investments | 547 | 394 |
Total interest income | 35,278 | 32,414 |
Interest Expense | ||
Interest on deposits | 3,749 | 2,554 |
Interest on borrowings | 1,780 | 1,161 |
Interest on subordinated debentures | 847 | 844 |
Total interest expense | 6,376 | 4,559 |
Net interest income | 28,902 | 27,855 |
(Credit) provision for credit losses | (497) | 579 |
Net interest income after (credit) provision for credit losses | 29,399 | 27,276 |
Non-Interest Income | ||
Service charges on deposit accounts | 1,836 | 1,823 |
Mortgage banking income, net | 1,391 | 1,553 |
Debit card income | 1,929 | 1,834 |
Income from fiduciary services | 1,283 | 1,247 |
Bank-owned life insurance | 608 | 577 |
Brokerage and insurance commissions | 650 | 453 |
Other service charges and fees | 462 | 468 |
Other income | 645 | 617 |
Total non-interest income | 8,804 | 8,572 |
Non-Interest Expense | ||
Salaries and employee benefits | 12,562 | 11,933 |
Furniture, equipment and data processing | 2,586 | 2,325 |
Net occupancy costs | 1,873 | 1,946 |
Consulting and professional fees | 804 | 845 |
Debit card expense | 730 | 660 |
Regulatory assessments | 499 | 545 |
Amortization of intangible assets | 181 | 472 |
Other real estate owned and collection costs (recoveries), net | 75 | (44) |
Other expenses | 2,994 | 2,746 |
Total non-interest expense | 22,304 | 21,428 |
Income before income tax expense | 15,899 | 14,420 |
Income tax expense | 3,079 | 4,344 |
Net Income | $ 12,820 | $ 10,076 |
Per Share Data | ||
Basic earnings per share (in dollars per share) | $ 0.82 | $ 0.65 |
Diluted earnings per share (in dollars per share) | $ 0.82 | $ 0.64 |
Weighted average number of common shares outstanding (in shares) | 15,541,975 | 15,488,848 |
Diluted weighted average number of common shares outstanding (in shares) | 15,603,380 | 15,568,639 |
Dividends, Common Stock, Cash | $ 0.25 | $ 0.23 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 12,820 | $ 10,076 | |
Net change in unrealized gains (losses) on available-for-sale securities: | |||
Net change in unrealized losses on available-for-sale securities, net of tax of $2,666 and $247, respectively | (9,729) | (458) | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax [Abstract] | |||
Net change in unrealized losses on cash flow hedging derivatives, net of tax of ($355) and ($48) respectively | 1,328 | 90 | |
Net reclassification adjustment for effective portion of cash flow hedges, net of tax of ($13) and ($159), respectively(1) | [1] | 51 | 296 |
Net change in unrealized losses on cash flow hedging derivatives, net of tax | 1,379 | 386 | |
Reclassification of amortization of net unrecognized actuarial loss and prior service cost, net of tax of ($31) and ($23), respectively(2) | [2] | 116 | 43 |
Other comprehensive loss | (8,234) | (29) | |
Comprehensive Income | $ 4,586 | $ 10,047 | |
[1] | (1) Reclassified into the consolidated statements of income within interest on borrowings and subordinated debentures. | ||
[2] | (2) Reclassified into the consolidated statements of income within salaries and employee benefits and other expenses. |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net change in unrealized gains on available-for-sale securities, tax effect | $ 2,666 | $ 247 |
Net change in unrealized gains (losses) on cash flow hedging derivatives, tax effect | 355 | 48 |
Net reclassification adjustment for effective portion of cash flow hedges included in interest expense, tax effect | (13) | (159) |
Reclassification of amortization of prior service cost included in net periodic cost, tax effect | $ (31) | $ (23) |
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, 2016 | 15,476,379 | |||
Beginning Balance at Dec. 31, 2016 | $ 391,547 | $ 156,041 | $ 249,415 | $ (13,909) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net Income | 10,076 | 10,076 | ||
Other comprehensive income, net of tax | (29) | (29) | ||
Stock-based compensation expense | 366 | $ 366 | ||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit (shares) | 31,646 | |||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings | (552) | $ (552) | ||
Cash dividends declared ($0.23 and $0.25 per share | (3,581) | (3,581) | ||
Ending Balance (in shares) at Mar. 31, 2017 | 15,508,025 | |||
Ending Balance at Mar. 31, 2017 | 397,827 | $ 155,855 | 255,910 | (13,938) |
Beginning Balance (in shares) at Dec. 31, 2017 | 15,524,704 | |||
Beginning Balance at Dec. 31, 2017 | 403,413 | $ 156,904 | 266,723 | (20,214) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net Income | 12,820 | |||
Other comprehensive income, net of tax | (8,234) | (8,234) | ||
Stock-based compensation expense | 431 | $ 431 | ||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit (shares) | 41,164 | |||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings | (475) | $ (475) | ||
Cash dividends declared ($0.23 and $0.25 per share | (3,900) | (3,900) | ||
Ending Balance (in shares) at Mar. 31, 2018 | 15,565,868 | |||
Ending Balance at Mar. 31, 2018 | $ 404,055 | $ 156,860 | 275,841 | (28,646) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cumulative-effect adjustment (Note 2) | $ 198 | $ (198) |
CONSOLIDATED STATEMENTS OF CHA8
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared, per share | $ 0.25 | $ 0.23 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Operating Activities | |||
Net Income | $ 12,820 | $ 10,076 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
(Credit) provision for credit losses | (497) | 579 | $ 3,035 |
Depreciation and amortization expense | 940 | 916 | |
Purchase accounting accretion, net | (514) | (748) | |
Investment securities amortization and accretion, net | 763 | 786 | |
Stock-based compensation expense | 431 | 366 | |
Amortization of intangible assets | 181 | 472 | |
Net increase in other real estate owned valuation allowance and gain on disposition | 0 | 27 | |
Originations of mortgage loans held for sale | (46,641) | (33,629) | |
Proceeds from the sale of mortgage loans | 46,426 | 44,320 | |
Gain on sale of mortgage loans, net of origination costs | (1,220) | (1,280) | |
(Increase) decrease in other assets | (2,850) | 3,283 | |
Increase (decrease) in other liabilities | 7,218 | (20) | |
Net cash provided by operating activities | 17,057 | 25,094 | |
Investing Activities | |||
Proceeds from maturities of held-to-maturity securities | 750 | 0 | |
Proceeds from the sale and maturity of available-for-sale securities | 29,531 | 32,557 | |
Purchase of available-for-sale securities | (50,152) | (77,286) | |
Net increase in loans | (7,008) | (50,049) | |
Purchase of Federal Home Loan Bank stock | (2,815) | (2,143) | |
Proceeds from sale of Federal Home Loan Bank and Federal Reserve Bank stock | 3,472 | 0 | |
Proceeds from the sale of other real estate owned | 0 | 329 | |
Recoveries of previously charged-off loans | 122 | 183 | |
Proceeds from the liquidation of equity investment | 205 | 0 | |
Purchase of premises and equipment | (595) | (264) | |
Proceeds from the sale of premises and equipment | 0 | 137 | |
Net cash used by investing activities | (26,490) | (96,536) | |
Financing Activities | |||
Net increase in deposits | 25,126 | 108,736 | |
Net proceeds from (repayments of ) borrowings less than 90 days | 10,816 | (37,779) | |
Repayments of wholesale repurchase agreements | 0 | (5,000) | |
Exercise of stock options and issuance of restricted stock, net of repurchase for tax withholdings | (475) | (552) | |
Cash dividends paid on common stock | 3,896 | 3,575 | |
Net cash provided by financing activities | 31,571 | 61,830 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | 22,138 | (9,612) | |
Cash, cash equivalents, and restricted cash at beginning of period | 102,971 | 87,707 | 87,707 |
Cash, cash equivalents and restricted cash at end of period | 125,109 | 78,095 | $ 102,971 |
Supplemental information | |||
Interest paid | 6,384 | 4,549 | |
Income taxes paid | $ 69 | $ 57 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 and December 31, 2017 , the consolidated statements of income for the three months ended March 31, 2018 and 2017 , the consolidated statements of comprehensive income for the three months ended March 31, 2018 and 2017 , the consolidated statements of changes in shareholders' equity for the three months ended March 31, 2018 and 2017 , and the consolidated statements of cash flows for the three months ended March 31, 2018 and 2017 . 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 months ended March 31, 2018 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, 2017 Annual Report on Form 10-K. The acronyms and abbreviations identified below are used throughout this Form 10-Q, including Part I. "Financial Information." The following was provided to aid the reader and provide a reference page when reviewing this section of the Form 10-Q. AFS: Available-for-sale HPFC: Healthcare Professional Funding Corporation, a wholly-owned subsidiary of Camden National Bank ALCO: Asset/Liability Committee HTM: Held-to-maturity ALL: Allowance for loan losses IRS: Internal Revenue Service AOCI: Accumulated other comprehensive income (loss) LIBOR: London Interbank Offered Rate ASC: Accounting Standards Codification LTIP: Long-Term Performance Share Plan ASU: Accounting Standards Update Management ALCO: Management Asset/Liability Committee Bank: Camden National Bank, a wholly-owned subsidiary of Camden National Corporation MBS: Mortgage-backed security BOLI: Bank-owned life insurance MSPP: Management Stock Purchase Plan Board ALCO: Board of Directors' Asset/Liability Committee N.M.: Not meaningful CCTA: Camden Capital Trust A, an unconsolidated entity formed by Camden National Corporation OCC: Office of the Comptroller of the Currency CDs: Certificate of deposits OCI: Other comprehensive income (loss) Company: Camden National Corporation OREO: Other real estate owned CMO: Collateralized mortgage obligation OTTI: Other-than-temporary impairment DCRP: Defined Contribution Retirement Plan SBM: SBM Financial, Inc., the parent company of The Bank of Maine EPS: Earnings per share SERP: Supplemental executive retirement plans FASB: Financial Accounting Standards Board Tax Act: Tax Cuts and Jobs Act of 2017, enacted on December 22, 2017 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 System Board of Governors 2003 Plan: 2003 Stock Option and Incentive Plan FRBB: Federal Reserve Bank of Boston 2012 Plan: 2012 Equity and Incentive Plan GAAP: Generally accepted accounting principles in the United States |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Accounting Standards Adopted The Company adopted the following new accounting standards in the first quarter of 2018 and such standards have been accounted for and presented within the accompanying consolidated financial statements for the three months ended March 31, 2018 as follows: ASU 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09") and ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606) : Deferral of the Effective Date ("ASU 2015-14"): In May 2014, the FASB issued ASU 2014-09 followed by the issuance of ASU 2015-14 in August 2015, to defer the effective date of ASU 2014-09 by one year. ASU 2014-09 was issued to clarify the principles for recognizing revenue and to develop a common revenue standard. Effective January 1, 2018, the Company adopted ASU 2014-09 using the modified-retrospective transition method. As part of its assessment, the Company concluded that the following material revenue streams were within the scope of ASU 2014-09: (i) service charges on deposit accounts; (ii) debit card interchange income; (iii) income from fiduciary services and (iv) investment program income. Through the Company's assessment, it was determined that there will be no cumulative-effect adjustment to beginning shareholders' equity under the modified-retrospective transition method within the consolidated financial statements as there was no change in revenue recognition upon adoption of ASU 2014-09. The details of the revenue streams within the scope of ASU 2014-09 are as follows: • Service charges on deposit accounts: Deposit-related fees, include, but are not limited to, overdraft income, service charge income, and other fees generated by the depositor relationship with the Bank. For each depositor relationship, an agreement and related disclosures outline the terms of the contract between the depositor and the Bank, including the assessment of fees and fee structure for its various products. The contract is day-to-day and can be closed by the customer or the Bank at any time. As such, the Company recognizes revenue at the time of the transaction as the performance obligation has been met. The Company presents its revenues earned on service charges on deposit accounts within (i) service charges on deposit accounts and (ii) other service charges and fees on the consolidated statements of income. • Debit card interchange income: The Bank has separate contracts with intermediaries and earns interchange revenue and incurs related expenses on debit card transactions of its deposit customers. Income earned and expenses incurred by the Bank are dependent on its depositors' debit card usage, including depositor spend, transaction type and merchant. The rates earned are determined by the intermediaries. The Company determined that while the contract for which revenues are directly earned is with the intermediary rather than the depositor, that the underlying contract with each depositor is required for the generation of debit card interchange income and it is the depositors' debit card usage that drives the revenues earned and related expenses incurred. The contract with the depositor is day-to-day and can be closed by the customer or the Bank at any time. As such, the Company recognized revenue at the time of the transaction as the performance obligation has been met. The Company's debit card interchange revenue and related expenses are presented on a gross basis in accordance with ASU 2014-09 as clarified by ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations ("ASU 2016-08"), as it has control of the specified service prior to transfer to the depositor through the extension of credit. The Bank pays to certain depositors cash rewards for debit card usage to promote usage and increase interchange revenue. As the consideration paid to its depositors is not for any separate or distinct service these costs are accounted for and presented as a reduction of debit card income upon adoption for periods beginning on January 1, 2018. The Company did not revise prior period presentation on its consolidated statements of income as the modified-retrospective transition method was used. The Company presents its revenues earned on debit card income within debit card income and related expenses on debit card transactions within debit card expense on the consolidated statements of income. • Fiduciary services income: The Company, through the Bank's wealth management and trust services department, doing business as Camden National Wealth Management, earns fees for its investment management and related services for its clients. Fees earned for its services are largely dependent on assets under management as of the last day of the month and do not contain performance clauses. Should the contract be terminated by either party, fees for services are earned up to the effective date of contract termination. As such, fiduciary services income is earned and recognized daily. The Company presents its revenues earned on fiduciary services within income from fiduciary services on the consolidated statements of income. • Investment program income: Under an investment program offered by the Bank, doing business as Camden Financial Consultant (“Program”), its clients are provided access to brokerage, advisory and insurance products offered through an unaffiliated third party, LPL Financial LLC 1 ("LPL Financial"). Certain Bank employees are registered securities representatives and/or registered investment advisor representatives of LPL Financial who operate in such capacity under Camden Financial Consultants to provide clients with brokerage, investment advisory and insurance related services. The Bank receives a portion of the commissions and fees received by LPL Financial from the sale of investment products and investment advisory services in accordance with the terms of the contract between the two parties. The revenues earned by the Bank are net of administrative expenses and the portion retained by LPL Financial. The Bank does not have control of the specified services provided to its clients under the Program by LPL Financial. Revenues earned from Program-related services are presented on the consolidated statements of income on a net basis in accordance with ASU 2014-09 as clarified by ASU 2016-08. The Company presents its revenues earned from Program-related services within brokerage and insurance commissions on the consolidated statements of income. ASU No. 2016-01, Income Statement - Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities ("ASU 2016-01"): In January 2016, the FASB issued ASU 2016-01 to enhance the reporting model for financial instruments to provide the users of financial statements with more useful information for decisions. Effective January 1, 2018, the Company adopted ASU 2016-01 and applied the provisions of the standard within its consolidated financial statements for the three months ended March 31, 2018, which included: • The Company's equity investments are no longer designated and accounted for as AFS securities, with the change in fair value recognized within AOCI, net of tax. Instead, the change in fair value of equity investments with a readily determinable fair value are to be recognized within net income. For the three months ended March 31, 2018, the Company recognized an unrealized loss of $35,000 for the change in fair value of its equity investments within other income on the Company's consolidated statements of income. The recognition for the change in fair value within net income was applied prospectively, and the Company recorded a cumulative-effect adjustment as of January 1, 2018 for its equity investments to reclassify the unrealized gain, net of tax, of $198,000 previously recognized within AOCI to retained earnings. • The Company used the "exit price" notion when measuring the fair value of financial instruments for disclosure purposes only. The Company previously used the "entry price" notion for purposes of measuring its loans held for investment for disclosure purposes only. The change in valuation methodology has been applied prospectively as it does not have a material effect on the comparability of the disclosure. • The Company no longer discloses the method or significant assumptions used to estimate the fair value for its financial instruments measured at amortized cost on its consolidated statements of condition for which fair value is provided for disclosure purposes only. ______________________________________________________________________________________________________ 1 Securities are offered through LPL Financial, Member FINRA/SIPC. Camden Financial Consultants and the Bank are not registered broker/dealers and are not affiliated with LPL Financial. The investment products sold through LPL Financial are not insured by Bank deposits and are not insured by the Federal Deposit Insurance Corporation ("FDIC"). These products are not obligations of the Bank and are not endorsed, recommended or guaranteed by the Bank or any government agency. The value of the investment may fluctuate, the return on the investment is not guaranteed, and loss of principal is possible. ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ("ASU 2017-07"): In March 2017, the FASB issued ASU 2017-07 to improve the presentation of net periodic pension cost and net periodic postretirement by companies to disaggregate the service cost component from the other components of net benefit cost, as well as provide other guidance to improve consistency, transparency and usefulness. Prior to adoption, the Company presented all components of net periodic benefit costs within the salaries and employee benefits on the Company's consolidated statements of income. Upon adoption, the Company now presents the service cost component of net periodic benefit cost in the salaries and employee benefits line and all other components of net periodic cost within other expenses on its consolidated statements of income. The change in presentation has been applied retrospectively to prior periods represented on the Company's consolidated statements of income using the amounts previously disclosed within its prior year financial statements as a practical expedient. ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"): In August 2016, the FASB issued ASU 2016-15 to address eight specific cash flow presentation matters within the statement of cash flows and reduce diversity of presentation across companies. Of the eight specific cash flow presentation matters addressed by the standard, it is noted that one matter addressed is of relevance to the Company based on its current and past operations: proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies. The standard states that cash proceeds received from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, should be classified as cash inflows from investing activities within statement of cash flows. The Company adopted the standard for financial reporting periods beginning after December 15, 2017 and it has been applied within the accompanying consolidated statement of cash flows using a retrospective transition method. ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash ("ASU 2016-18"): In November 2017, the FASB issued ASU 2016-18 to reduce the diversity in practice for the classification and presentation of changes in restricted cash on the statement of cash flows. The standard requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. As such, the statement of cash flows should consider the changes in amounts generally described as restricted cash or restricted cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown in the statements of cash flows. The Company adopted the standard for financial reporting periods beginning after December 15, 2017 and it has been applied within the accompanying consolidated statement of cash flows using a retrospective transition method. Accounting Standards Issued The following are recently issued accounting pronouncements that have yet to be adopted by the Company: ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"): In February 2016, the FASB issued ASU 2016-02 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. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, early application is permitted. The Company will adopt under a modified-retrospective approach. Upon adoption, ASU 2016-02 will increase the Company's total assets and liabilities on its consolidated statements of condition as its operating leases will be accounted for as a right-of-use asset and a lease liability; however, the Company does not anticipate that upon adoption the ASU will have a material effect on its consolidated financial statements. The Company continues to evaluate the impact of adoption of this standard. ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities ("ASU 2017-08"): In March 2017, the FASB issued ASU 2017-08 to shorten the amortization period for certain callable debt securities purchased and carried at a premium, by requiring the premium to be amortized to the earliest call date of the debt security. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. The Company will adopt on a modified retrospective basis with any necessary adjustments to retained earnings as a cumulative-effect adjustment. While the Company continues to assess the impact of ASU 2017-08, it does not expect the ASU will have a material impact to its financial statements upon adoption. ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12"): In August 2017, the FASB issued ASU 2017-12 to make certain specific improvements to hedge accounting to better align hedge accounting with risk management activities, eliminate the separate measurement and recording of hedge ineffectiveness, improve presentation and disclosure, and other simplifications. ASU 2017-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. All transition requirements and elections are to be applied to existing hedging relationships upon adoption. While the Company continues to assess the impact of ASU 2017-12, it does not believe it will have a material impact on the Company's consolidated financial statements upon adoption. ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"): In June 2016, the FASB issued ASU 2016-13 to require timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. ASU 2016-13 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 will adopt the guidance under a modified-retrospective approach, whereby a cumulative-effect adjustment will be made to retained earnings upon adoption. The Company will use a prospective transition approach for debt securities for which an OTTI had been recognized before the effective date, as applicable. While the Company continues to prepare for the adoption of ASU 2016-13 on January 1, 2020, it recognizes the changes to its consolidated financial statements upon adoption are imminent as the ASU requires: • A change in the Company's assessment of its ALL and allowance on unused commitments as it will transition from an incurred loss model to an expected loss model, which may result in an increase in the ALL upon adoption and may negatively impact the Company and Bank's regulatory capital ratios. • May reduce the carrying value of the Company's HTM investment securities as it will require an allowance on the expected losses over the life of these securities to be recorded upon adoption. • Changes to the considerations when assessing AFS debt securities for OTTI, including (i) no longer considering the amount of time a security has been in an unrealized loss position and (ii) no longer considering the historical and implied volatility of a security and recoveries or declines in the fair value after the balance sheet date, as well as the presentation of OTTI as an allowance rather than a permanent write-down of the debt security. • Changes to the disclosure requirements to reflect the transition from an incurred loss methodology to an expected credit loss methodology, as well as certain disclosures of credit quality indicators in relation to the amortized cost of financing receivables disaggregated by year of origination (or vintage). The Company continues to assess the overall impact to its financial statements, and, at this time, it does not have an estimated impact to its financial statements. Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"): In January 2017, the FASB issued ASU 2017-04 to reduce the cost and complexity of the goodwill impairment test. To simplify the subsequent measurement of goodwill, step two of the goodwill impairment test was eliminated. Instead, in accordance with ASU 2017-04, a Company will recognize an impairment of goodwill should the carrying value of a reporting unit exceed its fair value (i.e. step one). ASU 2017-04 will be effective for the Company on January 1, 2020 and will be applied prospectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2018 | |
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 2018 2017 Net income $ 12,820 $ 10,076 Dividends and undistributed earnings allocated to participating securities (1) (40 ) (45 ) Net income available to common shareholders $ 12,780 $ 10,031 Weighted-average common shares outstanding for basic EPS 15,541,975 15,488,848 Dilutive effect of stock-based awards (2) 61,405 79,791 Weighted-average common and potential common shares for diluted EPS 15,603,380 15,568,639 Earnings per common share (1) : Basic EPS $ 0.82 $ 0.65 Diluted EPS $ 0.82 $ 0.64 (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 and vesting of restricted stock units utilizing the treasury stock method. Not included are the unvested LTIP awards as they have not met the performance criteria for the periods presented. For the three months ended March 31, 2018 and 2017, there are no anti-dilutive stock based awards that have been excluded from the computation of potential common shares for purposes of calculating diluted EPS as the average market price of the Company's common stock is greater than the exercise prices. 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. |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS AFS and HTM Investments The following table summarizes 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 March 31, 2018 AFS Investments (carried at fair value): Obligations of states and political subdivisions $ 5,776 $ 55 $ (4 ) $ 5,827 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 517,823 490 (15,317 ) 502,996 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 293,371 6 (11,098 ) 282,279 Subordinated corporate bonds 5,485 119 (19 ) 5,585 Total AFS investments $ 822,455 $ 670 $ (26,438 ) $ 796,687 HTM Investments (carried at amortized cost): Obligations of states and political subdivisions $ 93,192 $ 130 $ (1,448 ) $ 91,874 Total HTM investments $ 93,192 $ 130 $ (1,448 ) $ 91,874 December 31, 2017 AFS Investments (carried at fair value): Obligations of states and political subdivisions $ 7,232 $ 103 $ — $ 7,335 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 510,176 597 (7,471 ) 503,302 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 279,575 14 (6,790 ) 272,799 Subordinated corporate bonds 5,484 173 — 5,657 Equity investments (1) 554 252 — 806 Total AFS investments $ 803,021 $ 1,139 $ (14,261 ) $ 789,899 HTM Investments (carried at amortized cost): Obligations of states and political subdivisions $ 94,073 $ 1,077 $ (237 ) $ 94,913 Total HTM investments $ 94,073 $ 1,077 $ (237 ) $ 94,913 (1) As of December 31, 2017, equity investments were classified as AFS investments. Effective January 1, 2018, these investments were reclassified to other investments on the consolidated statements of condition as they are no longer eligible to be classified as AFS upon adoption of ASU 2016-01. Refer to Note 2 for further details. Net unrealized losses on AFS investments at March 31, 2018 included in AOCI amounted to $20.2 million , net of a deferred tax benefit of $5.5 million . Net unrealized losses on AFS investments at December 31, 2017 included in AOCI amounted to $10.3 million , net of a deferred tax benefit of $2.8 million . For the three months ended March 31, 2018 and 2017, the Company purchased debt investments of $50.1 million and $77.3 million , respectively, all of which were designated as AFS debt investments. Impaired AFS and HTM Investments: Management periodically reviews the Company’s AFS and HTM investments 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 on AFS and HTM investments that were in a continuous loss position at March 31, 2018 and December 31, 2017 , by length of time that an individual security in each category has 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 March 31, 2018 AFS Investments: Obligations of states and political subdivisions $ 1,516 $ (4 ) $ — $ — $ 1,516 $ (4 ) Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 236,851 (5,661 ) 233,957 (9,656 ) 470,808 (15,317 ) Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 122,669 (2,308 ) 154,622 (8,790 ) 277,291 (11,098 ) Subordinated corporate bonds 965 (19 ) — — 965 (19 ) Total AFS investments $ 362,001 $ (7,992 ) $ 388,579 $ (18,446 ) $ 750,580 $ (26,438 ) HTM Investments: Obligations of states and political subdivisions $ 62,815 $ (958 ) $ 10,225 $ (490 ) $ 73,040 $ (1,448 ) Total HTM investments $ 62,815 $ (958 ) $ 10,225 $ (490 ) $ 73,040 $ (1,448 ) December 31, 2017 AFS Investments: Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises $ 221,466 $ (2,393 ) $ 233,971 $ (5,078 ) $ 455,437 $ (7,471 ) Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 102,612 (696 ) 164,389 (6,094 ) 267,001 (6,790 ) Total AFS investments $ 324,078 $ (3,089 ) $ 398,360 $ (11,172 ) $ 722,438 $ (14,261 ) HTM Investments: Obligations of states and political subdivisions $ 9,317 $ (57 ) $ 9,436 $ (180 ) $ 18,753 $ (237 ) Total HTM investments $ 9,317 $ (57 ) $ 9,436 $ (180 ) $ 18,753 $ (237 ) At March 31, 2018 and December 31, 2017 , the Company held 328 and 209 debt investments classified as AFS and HTM with a fair value of $823.6 million and $741.2 million that were in an unrealized loss position totaling $ 27.9 million and $14.5 million , respectively, that were considered temporary. Of these, MBS and CMOs with a fair value of $ 388.6 million and $ 398.4 million were in an unrealized loss position, and have been in an unrealized loss position for 12 months or more, totaling $18.4 million and $11.2 million at March 31, 2018 and December 31, 2017 , respectively. The unrealized loss was reflective of current interest rates in excess of the yield received on debt investments and is not indicative of an overall change in credit quality or other factors with the Company's AFS and HTM investment portfolio. At March 31, 2018 and December 31, 2017 , gross unrealized losses on the Company's AFS and HTM investments were 3.0% and 2.0% , respectively, of its respective fair value. The Company has the intent and ability to retain its debt investments in an unrealized loss position at March 31, 2018 until the decline in value has recovered. Sale of AFS Investments: For the three months ended March 31, 2018 and 2017, the Company did not sell any AFS investments. AFS and HTM Investments Pledged: At March 31, 2018 and December 31, 2017 , AFS and HTM investments with an amortized cost of $684.3 million and $702.5 million and estimated fair values of $661.9 million and $691.2 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 the Company's AFS and HTM investments by contractual maturity at March 31, 2018 , 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 Investments Due in one year or less $ 5,307 $ 5,302 Due after one year through five years 112,412 110,253 Due after five years through ten years 213,112 206,368 Due after ten years 491,624 474,764 $ 822,455 $ 796,687 HTM Investments Due in one year or less $ 1,418 $ 1,418 Due after one year through five years 3,783 3,796 Due after five years through ten years 13,035 12,954 Due after ten years 74,956 73,706 $ 93,192 $ 91,874 Other Investments The following table summarizes the cost and estimated fair values of the Company's investment in equity securities, FHLBB stock and FRBB stock as presented within other investments on the consolidated statements of condition, as of the dates indicated: Cost Unrealized Gains Unrealized Losses Fair Value March 31, 2018 Equity securities - bank stock (carried at fair value) (1) $ 544 $ 217 $ — $ 761 FHLBB (carried at cost) 17,639 — — 17,639 FRB (carried at cost) 5,374 — — 5,374 Total other investments $ 23,557 $ 217 $ — $ 23,774 December 31, 2017 FHLBB (carried at cost) $ 18,296 $ — $ — $ 18,296 FRB (carried at cost) 5,374 — — 5,374 Total other investments $ 23,670 $ — $ — $ 23,670 (1) Effective January 1, 2018, these investments were reclassified to other investments on the consolidated statements of condition as they are no longer eligible for AFS classification upon adoption of ASU 2016-01. Refer to Note 2 for further details. For the three months ended March 31, 2018, the Company recognized an unrealized loss of $35,000 due to the change in fair value of its bank stock equity securities, and has been presented within other income on the consolidated statements of income. In addition, the Company's investment in a reinsurance program liquidated during the three months ended March 31, 2018, and a gain of $195,000 was recognized within other income on the Company's consolidated statements of income. The Bank is a member of the FHLBB and FRBB, and as a member, the Bank is required to hold a certain amount of FHLBB and FRB common stock. This stock is a non-marketable equity security and is reported at cost. The Company evaluates its FHLBB and FRB common stock for impairment based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. For the three months ended March 31, 2018 and 2017, the Company did not record any other-than-temporary impairment on its FHLBB and FRB stock. |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 and December 31, 2017 was as follows: March 31, December 31, Residential real estate $ 860,533 $ 858,369 Commercial real estate 1,169,533 1,164,023 Commercial 378,015 373,400 Home equity 320,642 323,378 Consumer 18,011 18,149 HPFC 42,414 45,120 Total loans $ 2,789,148 $ 2,782,439 The loan balances for each portfolio segment presented above are net of their respective unamortized fair value mark discount on acquired loans and net of unamortized loan origination costs totaling: March 31, December 31, Net unamortized fair value mark discount on acquired loans $ 5,703 $ 6,207 Net unamortized loan origination costs (958 ) (963 ) Total $ 4,745 $ 5,244 The Bank’s lending activities are primarily conducted in Maine, but also include a mortgage loan production office in Massachusetts and two commercial loan production offices in New Hampshire. 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. In 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 three months ended March 31, 2018 . 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. 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. Prior to the Company's closing of HPFC's operations in 2016, it provided commercial lending to dentists, optometrists and veterinarians, many of which were 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 consists 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 presents the activity in the ALL and select loan information by portfolio segment for the three months ended March 31, 2018 and 2017 , and for the year ended December 31, 2017 : Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer HPFC Total For The Three Months Ended March 31, 2018 ALL for the three months ended: Beginning balance $ 5,086 $ 11,863 $ 4,171 $ 2,367 $ 233 $ 451 $ 24,171 Loans charged off (31 ) (426 ) (171 ) (149 ) (26 ) — (803 ) Recoveries — 13 63 43 3 — 122 Provision (credit) (1) 442 (1,164 ) 63 166 20 (27 ) (500 ) Ending balance $ 5,497 $ 10,286 $ 4,126 $ 2,427 $ 230 $ 424 $ 22,990 ALL balance attributable to loans: Individually evaluated for impairment $ 553 $ 368 $ — $ 112 $ — $ — $ 1,033 Collectively evaluated for impairment 4,944 9,918 4,126 2,315 230 424 21,957 Total ending ALL $ 5,497 $ 10,286 $ 4,126 $ 2,427 $ 230 $ 424 $ 22,990 Loans: Individually evaluated for impairment $ 5,059 $ 3,961 $ 1,714 $ 491 $ — $ — $ 11,225 Collectively evaluated for impairment 855,474 1,165,572 376,301 320,151 18,011 42,414 2,777,923 Total ending loans balance $ 860,533 $ 1,169,533 $ 378,015 $ 320,642 $ 18,011 $ 42,414 $ 2,789,148 For The Three Months Ended March 31, 2017 ALL for the three months ended: Beginning balance $ 4,160 $ 12,154 $ 3,755 $ 2,194 $ 181 $ 672 $ 23,116 Loans charged off (5 ) (3 ) (136 ) (1 ) (14 ) — (159 ) Recoveries — 103 77 1 2 — 183 Provision (credit) (1) 116 472 119 (87 ) 6 (45 ) 581 Ending balance $ 4,271 $ 12,726 $ 3,815 $ 2,107 $ 175 $ 627 $ 23,721 ALL balance attributable to loans: Individually evaluated for impairment $ 485 $ 1,100 $ — $ 83 $ — $ 66 $ 1,734 Collectively evaluated for impairment 3,786 11,626 3,815 2,024 175 561 21,987 Total ending ALL $ 4,271 $ 12,726 $ 3,815 $ 2,107 $ 175 $ 627 $ 23,721 Loans: Individually evaluated for impairment $ 4,408 $ 13,191 $ 1,994 $ 430 $ 7 $ 98 $ 20,128 Collectively evaluated for impairment 815,231 1,083,284 331,613 322,396 16,662 55,825 $ 2,625,011 Total ending loans balance $ 819,639 $ 1,096,475 $ 333,607 $ 322,826 $ 16,669 $ 55,923 $ 2,645,139 Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer HPFC Total For The Year Ended December 31, 2017 ALL: Beginning balance $ 4,160 $ 12,154 $ 3,755 $ 2,194 $ 181 $ 672 $ 23,116 Loans charged off (482 ) (124 ) (1,014 ) (434 ) (124 ) (290 ) (2,468 ) Recoveries 30 141 301 2 17 6 497 Provision (credit) (1) 1,378 (308 ) 1,129 605 159 63 3,026 Ending balance $ 5,086 $ 11,863 $ 4,171 $ 2,367 $ 233 $ 451 $ 24,171 ALL balance attributable to loans: Individually evaluated for impairment $ 568 $ 1,441 $ — $ — $ — $ — $ 2,009 Collectively evaluated for impairment 4,518 10,422 4,171 2,367 233 451 22,162 Total ending ALL $ 5,086 $ 11,863 $ 4,171 $ 2,367 $ 233 $ 451 $ 24,171 Loans: Individually evaluated for impairment $ 5,171 $ 6,199 $ 1,791 $ 429 $ — $ — $ 13,590 Collectively evaluated for impairment 853,198 1,157,824 371,609 322,949 18,149 45,120 2,768,849 Total ending loans balance $ 858,369 $ 1,164,023 $ 373,400 $ 323,378 $ 18,149 $ 45,120 $ 2,782,439 (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 March 31, 2018 and 2017, and December 31, 2017 , the reserve for unfunded commitments was $23,000 , $9,000 and $20,000 , respectively. The following reconciles the three months ended March 31, 2018 and 2017, and year ended December 31, 2017 (credit) provision for loan losses to the (credit) provision for credit losses as presented on the consolidated statement of income: Three Months Ended Year Ended December 31, 2017 2018 2017 (Credit) provision for loan losses $ (500 ) $ 581 $ 3,026 Change in reserve for unfunded commitments 3 (2 ) 9 (Credit) provision for credit losses $ (497 ) $ 579 $ 3,035 The Company focuses on maintaining a well-balanced and diversified loan portfolio. Despite such efforts, it is recognized that credit concentrations may occasionally emerge as a result of economic conditions, changes in local demand, natural loan growth and runoff. To ensure that credit concentrations can be effectively identified, all commercial and commercial real estate loans are assigned Standard Industrial Classification codes, North American Industry Classification System codes, and state and county codes. Shifts in portfolio concentrations are monitored by the Company's Credit Risk Administration. As of March 31, 2018 , the non-residential building operators' industry exposure was 11% of the Company's total loan portfolio and 26% of the total commercial real estate portfolio. There were no other industry exposures exceeding 10% of the Company's total loan portfolio as of March 31, 2018 . 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 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 March 31, 2018 Pass (Grades 1-6) $ 847,822 $ 1,146,947 $ 361,377 $ — $ — $ 40,768 $ 2,396,914 Performing — — — 319,178 18,011 — 337,189 Special Mention (Grade 7) 662 8,510 12,437 — — 174 21,783 Substandard (Grade 8) 12,049 14,076 4,201 — — 1,472 31,798 Non-performing — — — 1,464 — — 1,464 Total $ 860,533 $ 1,169,533 $ 378,015 $ 320,642 $ 18,011 $ 42,414 $ 2,789,148 December 31, 2017 Pass (Grades 1-6) $ 846,394 $ 1,130,235 $ 354,904 $ — $ — $ 43,049 $ 2,374,582 Performing — — — 321,727 18,149 — 339,876 Special Mention (Grade 7) 922 9,154 12,517 — — 191 22,784 Substandard (Grade 8) 11,053 24,634 5,979 — — 1,880 43,546 Non-performing — — — 1,651 — — 1,651 Total $ 858,369 $ 1,164,023 $ 373,400 $ 323,378 $ 18,149 $ 45,120 $ 2,782,439 The Company closely monitors the performance of its loan portfolio. A loan is placed on non-accrual status when the financial condition of the borrower is deteriorating, payment in full of both principal and interest is not expected as scheduled or principal or interest has been in default for 90 days or more. Exceptions may be made if the asset is well-secured by collateral sufficient to satisfy both the principal and accrued interest in full and collection is reasonably assured. When one loan to a borrower is placed on non-accrual status, all other loans to the borrower are re-evaluated to determine if they should also be placed on non-accrual status. All previously accrued and unpaid interest is reversed at this time. A loan may 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 March 31, 2018 Residential real estate $ 2,969 $ 533 $ 4,762 $ 8,264 $ 852,269 $ 860,533 $ — $ 6,185 Commercial real estate 1,455 72 4,167 5,694 1,163,839 1,169,533 — 4,603 Commercial 144 103 1,532 1,779 376,236 378,015 — 1,991 Home equity 1,121 101 1,083 2,305 318,337 320,642 — 1,464 Consumer 14 9 — 23 17,988 18,011 — — HPFC 109 419 655 1,183 41,231 42,414 — 655 Total $ 5,812 $ 1,237 $ 12,199 $ 19,248 $ 2,769,900 $ 2,789,148 $ — $ 14,898 December 31, 2017 Residential real estate $ 3,871 $ 1,585 $ 4,021 $ 9,477 $ 848,892 $ 858,369 $ — $ 4,979 Commercial real estate 849 323 5,528 6,700 1,157,323 1,164,023 — 5,642 Commercial 329 359 1,535 2,223 371,177 373,400 — 2,000 Home equity 1,046 173 1,329 2,548 320,830 323,378 — 1,650 Consumer 57 10 — 67 18,082 18,149 — — HPFC 139 1,372 419 1,930 43,190 45,120 — 1,043 Total $ 6,291 $ 3,822 $ 12,832 $ 22,945 $ 2,759,494 $ 2,782,439 $ — $ 15,314 Interest income that would have been recognized if loans on non-accrual status had been current in accordance with their original terms was $162,000 and $210,000 for the three months ended March 31, 2018 and 2017 , 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. TDRs 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 net realizable value, 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 March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 Residential real estate 24 24 $ 3,581 $ 3,604 $ 410 $ 452 Commercial real estate 2 3 354 976 20 16 Commercial 7 7 1,339 1,345 — — Home equity 2 2 306 307 — — Total 35 36 $ 5,580 $ 6,232 $ 430 $ 468 At March 31, 2018 , the Company had performing and non-performing TDRs with a recorded investment balance of $4.4 million and $1.2 million , respectively. At December 31, 2017, the Company had performing and non-performing TDRs with a recorded investment balance of $5.0 million and $1.2 million, respectively. The following represents loan modifications that qualify as TDRs that occurred for the three months ended March 31, 2018 and 2017 : Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Specific Reserve 2018 2017 2018 2017 2018 2017 2018 2017 Residential real estate: Maturity concession — 1 $ — $ 151 $ — $ 151 $ — $ 15 Total — 1 $ — $ 151 $ — $ 151 $ — $ 15 For the three months ended March 31, 2018 and 2017, no loans were modified as TDRs within the previous 12 months for which the borrower subsequently defaulted. Impaired Loans: Impaired loans consist of non-accrual loans and TDRs 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 the three months ended March 31, 2018 and 2017, and as of and for the year-ended December 31, 2017: For the Three Months Ended Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized March 31, 2018 : With an allowance recorded: Residential real estate $ 3,544 $ 3,544 $ 553 $ 3,745 $ 30 Commercial real estate 3,591 3,591 368 4,275 1 Commercial — — — — — Home equity 147 147 112 49 — Consumer — — — — — HPFC — — — — — Ending balance 7,282 7,282 1,033 8,069 31 Without an allowance recorded: Residential real estate 1,515 1,791 — 1,350 7 Commercial real estate 370 677 — 637 3 Commercial 1,714 2,923 — 1,740 2 Home equity 344 468 — 396 2 Consumer — — — — — HPFC — — — — — Ending balance 3,943 5,859 — 4,123 14 Total impaired loans $ 11,225 $ 13,141 $ 1,033 $ 12,192 $ 45 March 31, 2017: With an allowance recorded: Residential real estate $ 3,048 $ 3,048 $ 485 $ 3,025 $ 26 Commercial real estate 11,791 11,791 1,100 11,654 — Commercial 1 1 — — — Home equity 297 297 83 298 — Consumer — — — — — HPFC 98 98 66 98 — Ending Balance 15,235 15,235 1,734 15,075 26 Without an allowance recorded: Residential real estate 1,360 1,740 — 1,292 2 Commercial real estate 1,400 1,707 — 1,704 10 Commercial 1,993 3,167 — 2,024 3 Home equity 133 269 — 139 — Consumer 7 10 — 7 — HPFC — — — — — Ending Balance 4,893 6,893 — 5,166 15 Total impaired loans $ 20,128 $ 22,128 $ 1,734 $ 20,241 $ 41 For the Year Ended Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2017: With an allowance recorded: Residential real estate $ 3,858 $ 3,858 $ 568 $ 3,177 $ 131 Commercial real estate 5,422 5,422 1,441 8,900 22 Commercial — — — 31 — Home equity — — — 125 — Consumer — — — — — HPFC — — — 24 — Ending Balance 9,280 9,280 2,009 12,257 153 Without an allowance recorded: Residential real estate 1,313 1,673 — 1,345 15 Commercial real estate 777 1,084 — 1,132 29 Commercial 1,791 2,964 — 1,920 10 Home equity 429 495 — 310 8 Consumer — — — 2 — HPFC — — — — — Ending Balance 4,310 6,216 — 4,709 62 Total impaired loans $ 13,590 $ 15,496 $ 2,009 $ 16,966 $ 215 Loan Sales: For the three months ended March 31, 2018 and 2017, the Company sold $45.2 million and $43.0 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 $1.2 million and $1.3 million, respectively. At March 31, 2018 and December 31, 2017 , the Company had certain residential mortgage loans with a principal balance of $9.5 million and $8.1 million , respectively, designated as held for sale. The Company has elected the fair value option of accounting for its loans held for sale, and at March 31, 2018 and December 31, 2017 , recorded an unrealized gain of $47,000 and $37,000 , respectively. For the three months ended March 31, 2018 and 2017 , the Company recorded within mortgage banking income, net on its consolidated statements of income the net change in unrealized gains of $9,000 and $254,000 , respectively, on its loans held for sale. The Company has forward delivery commitments with a secondary market investor on each of its loans held for sale at March 31, 2018 and December 31, 2017. The fair value of its forward delivery commitments at March 31, 2018 and December 31, 2017 was $123,000 and $142,000 , respectively. For the three months ended March 31, 2018 and 2017, the net unrealized loss from the change in fair value on the Company's forward delivery commitments reported within mortgage banking income, net on the consolidated statements of income were $19,000 and $118,000 , respectively. Refer to Note 12 for further discussion of the Company's forward delivery commitments. In-Process Foreclosure Proceedings: At March 31, 2018 and December 31, 2017 , the Company had $2.0 million and $1.9 million , respectively, of consumer mortgage loans secured by residential real estate properties for which foreclosure proceedings were in process. 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 at March 31, 2018 and December 31, 2017 . Refer to Notes 4 and 10 of the consolidated financial statements for discussion of securities pledged as collateral. |
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS | 3 Months Ended |
Mar. 31, 2018 | |
Regulatory Capital Requirements [Abstract] | |
REGULATORY CAPITAL REQUIREMENTS | REGULATORY CAPITAL REQUIREMENTS The Company and Bank are subject to various regulatory capital requirements administered by the FRB and the OCC. Failure to meet minimum capital requirements can result in mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. The Company and 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 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 the Company and Bank 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 the 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, 2018, the Company and Bank were required to establish a capital conservation buffer of 1.875% , 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 Bank's risk-based capital ratios exceeded regulatory guidelines at March 31, 2018 and December 31, 2017 , and specifically the Bank was "well capitalized" under prompt corrective action provisions for each period. There were no new conditions or events that occurred subsequent to March 31, 2018 that would change the Company or Bank's regulatory capital categorization. The following table presents the Company and Bank's regulatory capital ratios at the periods indicated: March 31, 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 plus Capital Conservation Buffer Minimum Regulatory Provision To Be "Well Capitalized" Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Camden National Corporation: Total risk-based capital ratio $ 403,941 14.32 % 9.88 % N/A $ 396,451 14.14 % 9.25 % N/A Tier I risk-based capital ratio 365,930 12.98 % 7.88 % N/A 357,261 12.74 % 7.25 % N/A Common equity Tier I risk-based capital ratio 322,930 11.45 % 6.38 % N/A 316,677 11.30 % 5.75 % N/A Tier I leverage capital ratio 365,930 9.23 % 4.00 % N/A 357,261 9.07 % 4.00 % N/A Camden National Bank: Total risk-based capital ratio $ 375,434 13.31 % 9.88 % 10.00 % $ 369,540 13.18 % 9.25 % 10.00 % Tier I risk-based capital ratio 352,422 12.49 % 7.88 % 8.00 % 345,350 12.32 % 7.25 % 8.00 % Common equity Tier I risk-based capital ratio 352,422 12.49 % 6.38 % 6.50 % 345,350 12.32 % 5.75 % 6.50 % Tier I leverage capital ratio 352,422 8.92 % 4.00 % 5.00 % 345,350 8.80 % 4.00 % 5.00 % In 2015, the Company issued $15.0 million of subordinated debentures, and in 2006 and 2008, it issued $43.0 million of junior subordinated debentures in connection with the issuance of trust preferred securities. 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 March 31, 2018 and December 31, 2017 , $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 March 31, 2018 and December 31, 2017 , $43.0 million of the junior subordinated debentures were included in Tier I and total risk-based capital for the Company. The Company and Bank's regulatory capital and risk-weighted assets fluctuate due to normal business, including profits and losses generated by the Company and Bank as well as changes to their asset mix. Of particular significance are changes within the Company and Bank's loan portfolio mix due to the difference in regulatory risk-weighting differences between retail and commercial loans. Furthermore, the Company and Bank's regulatory capital and risk-weighted assets are subject to change due to changes in GAAP and regulatory capital standards. The Company and Bank proactively monitor their regulatory capital and risk-weighted assets, and the impact of changes to their asset mix, and impact of proposed and pending changes as a result of new and/or amended GAAP standards and regulatory changes. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company's effective income tax rate for the three months ended March 31, 2018 and 2017 was as follows: Three Months Ended 2018 2017 Income tax expense $ 3,079 $ 4,344 Income before income tax expense $ 15,899 $ 14,420 Effective tax rate (1) 19.4 % 30.1 % (1) On December 22, 2017, the Tax Act was enacted, reducing the U.S. federal corporate income tax rate from 35.0% to 21.0%, effective January 1, 2018. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2018 | |
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 periodic benefit cost for the periods ended March 31, 2018 and 2017 were as follows: Supplemental Executive Retirement Plan: Three Months Ended Net periodic pension cost Income Statement Presentation 2018 2017 Service cost Salaries and employee benefits $ 112 $ 84 Interest cost Other expenses 122 112 Recognized net actuarial loss Other expenses 140 62 Total $ 374 $ 258 Other Postretirement Benefit Plan: Three Months Ended Net periodic postretirement benefit cost Income Statement Presentation 2018 2017 Service cost Salaries and employee benefits $12 $13 Interest cost Other expenses 33 36 Recognized net actuarial loss Other expenses 13 10 Amortization of prior service credit Other expenses (6) (6) Total $52 $53 |
BORROWINGS
BORROWINGS | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS The following summarizes the Company's short-term and long-term borrowed funds as presented on the consolidated statements of condition at: March 31, December 31, 2017 Short-Term Borrowings (mature within one year): Customer repurchase agreements $ 256,274 $ 244,646 FHLBB borrowings 135,000 250,000 Overnight borrowings 161,350 47,150 Total short-term borrowings $ 552,624 $ 541,796 Long-Term Borrowings (maturity greater than one year): FHLBB borrowings $ 10,000 $ 10,000 Capital lease obligation 773 791 Total long-term borrowings $ 10,773 $ 10,791 |
REPURCHASE AGREEMENTS
REPURCHASE AGREEMENTS | 3 Months Ended |
Mar. 31, 2018 | |
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. Because the securities are treated as collateral and the agreement does not qualify for a full transfer of effective control, the transaction 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 March 31, 2018 and December 31, 2017 : Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30 - 90 Days Greater than 90 Days Total March 31, 2018 Customer Repurchase Agreements: Obligations of states and political subdivisions $ 1,125 $ — $ — $ — $ 1,125 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 90,903 — — — 90,903 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 164,246 — — — 164,246 Total Customer Repurchase Agreements 256,274 — — — 256,274 Total Repurchase Agreements $ 256,274 $ — $ — $ — $ 256,274 December 31, 2017 Customer Repurchase Agreements: Obligations of states and political subdivisions $ 630 $ — $ — $ — $ 630 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 98,460 — — — 98,460 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 145,556 — — — 145,556 Total Customer Repurchase Agreements 244,646 — — — 244,646 Total Repurchase Agreements $ 244,646 $ — $ — $ — $ 244,646 Certain customers held CDs totaling $920,000 with the Bank at March 31, 2018 and December 31, 2017 , 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 AND DISC
FAIR VALUE MEASUREMENT AND DISCLOSURE | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT AND DISCLOSURE | 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. Debt Securities : The fair value of investments in debt 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. Equity Securities: The fair value of investments in equity securities is reported utilizing market prices based on recent trading activity and dealer quotes. The equity securities are traded on inactive markets and are classified as Level 2. Derivatives : The fair value of the Company's interest rate swaps, including its junior subordinated debt interest rate swaps, FHLBB advance interest rate swaps and customer loan swaps, are 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 March 31, 2018 and December 31, 2017, 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 the Company's fixed-rate interest rate lock commitments are determined using secondary market pricing for loans with similar structures, including term, rate and borrower credit quality, adjusted for the Company's pull-through rate estimate (i.e. estimate of loans within its pipeline that will ultimately complete the origination process and be funded). The Company has classified its fixed-rate interest rate lock commitments as Level 2 as the quoted secondary market prices are the more significant input, and while the Company's internal pull-through rate estimate is a Level 3 estimate it is not as critical to the ultimate valuation. The fair value of the Company's forward delivery commitments are determined using secondary market pricing for loans with similar structures, including term, rate and borrower credit quality, and the locked and agreed to price with the secondary market investor. The Company has classified its fixed-rate interest rate lock commitments as Level 2. The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2018 and December 31, 2017 , 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) March 31, 2018 Financial assets: Loans held for sale $ 9,548 $ — $ 9,548 $ — AFS investments: Obligations of states and political subdivisions 5,827 — 5,827 — Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 502,996 — 502,996 — Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 282,279 — 282,279 — Subordinated corporate bonds 5,585 — 5,585 — Equity securities - bank stock 761 — 761 — Customer loan swaps 10,707 — 10,707 — Fixed-rate mortgage interest rate lock commitments 308 — 308 — Forward delivery commitments 145 — 145 — FHLBB advance interest rate swaps 85 — 85 — Financial liabilities: Junior subordinated debt interest rate swaps 5,877 — 5,877 — Customer loan swaps 10,707 — 10,707 — Fixed-rate mortgage interest rate lock commitments 35 — 35 — Forward delivery commitments 22 — 22 — December 31, 2017 Financial assets: Loans held for sale $ 8,103 $ — $ 8,103 $ — AFS investments: Obligations of states and political subdivisions 7,335 — 7,335 — Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 503,302 — 503,302 — Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 272,799 — 272,799 — Subordinated corporate bonds 5,657 — 5,657 — Equity investments 806 — 806 — Customer loan swaps 5,036 — 5,036 — Fixed-rate mortgage interest rate lock commitments 307 — 307 — Forward delivery commitments 158 — 158 — FHLBB advance interest rate swaps 21 — 21 — Financial liabilities: Junior subordinated debt interest rate swaps 7,571 — 7,571 — Customer loan swaps 5,036 — 5,036 — Fixed-rate mortgage interest rate lock commitments 22 — 22 — Forward delivery commitments 16 — 16 — The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during the three months ended March 31, 2018 . 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. Effective January 1, 2017, the Company's policy is to individually evaluate for impairment loans with a principal balance greater than $500,000 or more and are classified as substandard or doubtful and are on non-accrual status. Prior to January 1, 2017, the Company's policy was to individually evaluate for impairment loans with a principal balance greater than $250,000 or more and was classified as substandard or doubtful and was on non-accrual status. Once the population of loans is identified for individual impairment assessment, the Company measures these loans for impairment by comparing net realizable value, which is the fair value of the collateral, less estimated costs to sell, to the carrying value of the loan. If the net realizable value 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 net realizable value. 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. Servicing Assets : 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 two significant unobservable inputs, which are loan prepayment assumptions and the discount rate used, to calculate the fair value of each tranche, and, as such, the Company has classified within Level 3 of the fair value hierarchy. At March 31, 2018 and December 31, 2017, the mortgage servicing assets were not carried at fair value. Non-Financial Instruments 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 net realizable value, 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 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 three months ended March 31, 2018 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 three months ended March 31, 2018 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 March 31, 2018 and December 31, 2017 : Fair Value Readily Available Market Prices (Level 1) Observable Market Data (Level 2) Company Determined Fair Value (Level 3) March 31, 2018 Financial assets: Collateral-dependent impaired loans $ 3,600 $ — $ — $ 3,600 Non-financial assets: OREO 130 — — 130 December 31, 2017 Financial assets: Collateral-dependent impaired loans $ 3,696 $ — $ — $ 3,696 Non-financial assets: OREO 130 — — 130 The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at March 31, 2018 and December 31, 2017 : Fair Value Valuation Methodology Unobservable input Discount Range (Weighted-Average) March 31, 2018 Collateral-dependent impaired loans: Partially charged-off $ 18 Market approach appraisal of collateral Management adjustment of appraisal 0% (0%) Estimated selling costs 10% (10%) Specifically reserved 3,582 Market approach appraisal of collateral Management adjustment of appraisal 0% (0%) Estimated selling costs 10% (10%) OREO 130 Market approach appraisal of collateral Management adjustment of appraisal 20% (20%) Estimated selling cost 10% (10%) December 31, 2017 Collateral-dependent impaired loans: Partially charged-off $ 86 Market approach appraisal of collateral Management adjustment 0 - 50% (18%) Estimated selling costs 0 - 10% (6%) Specifically reserved 3,610 Market approach appraisal of collateral Management adjustment 0% (0%) Estimated selling costs 10% (10%) OREO 130 Market approach appraisal of collateral Management adjustment 20% (20%) Estimated selling costs 10% (10%) The estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below as of the periods indicated: Carrying Amount Fair Value Readily Available Market Prices (Level 1) Observable Market Prices (Level 2) Company Determined Market Prices (Level 3) March 31, 2018 Financial assets: HTM securities $ 93,192 $ 91,874 $ — $ 91,874 $ — Residential real estate loans (1) 855,036 842,132 — — 842,132 Commercial real estate loans (1) 1,159,247 1,119,406 — — 1,119,406 Commercial loans (1)(2) 415,879 404,925 — — 404,925 Home equity loans (1) 318,215 311,142 — — 311,142 Consumer loans (1) 17,781 16,880 — — 16,880 Servicing assets 972 1,840 — — 1,840 Financial liabilities: Time deposits $ 538,957 $ 532,244 $ — $ 532,244 $ — Short-term borrowings 552,624 552,289 — 552,289 — Long-term borrowings 10,773 10,658 — 10,658 — Subordinated debentures 58,950 45,588 — 45,588 — December 31, 2017 Financial assets: HTM securities $ 94,073 $ 94,913 $ — $ 94,913 $ — Residential real estate loans (1) 853,283 853,056 — — 853,056 Commercial real estate loans (1) 1,152,160 1,115,618 — — 1,115,618 Commercial loans (1)(2) 413,898 401,902 — — 401,902 Home equity loans (1) 321,011 318,230 — — 318,230 Consumer loans (1) 17,916 17,335 — — 17,335 Servicing assets 1,025 1,766 — — 1,766 Financial liabilities: Time deposits $ 517,032 $ 512,483 $ — $ 512,483 $ — Short-term borrowings 541,796 541,605 — 541,605 — Long-term borrowings 10,791 10,777 — 10,777 — Subordinated debentures 58,911 44,333 — 44,333 — (1) The presented carrying amount is net of the allocated ALL. (2) Includes the HPFC loan portfolio. Excluded from the summary are financial instruments measured at fair value on a recurring and nonrecurring basis, as previously described. The Company considers its financial instruments' current use to be the highest and best use of the instruments. |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND DERIVATIVES | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND DERIVATIVES | COMMITMENTS, CONTINGENCIES AND DERIVATIVES Legal Contingencies In the normal course of business, the Company and its subsidiary 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 statements. 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 March 31, 2018 and December 31, 2017 , 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: March 31, December 31, Lending-Related Instruments: Loan origination commitments and unadvanced lines of credit: Home equity $ 501,127 $ 477,401 Residential 36,352 41,368 Commercial and commercial real estate 31,667 49,482 Letters of credit 3,426 2,848 Other commitments 1,151 523 Derivative Financial Instruments: Customer loan swaps $ 708,316 $ 703,336 Junior subordinated debt interest rate swaps 43,000 43,000 FHLBB advance interest rate swaps 25,000 50,000 Interest rate lock commitments 24,753 21,746 Forward delivery commitments 9,502 8,065 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 effort" basis, with certain approved investors. The Company accounts for its interest rate lock commitments on loans within the normal origination process for which it intends to sell as a derivative instrument. Furthermore, the Company records a derivative for its "best effort" forward delivery commitments upon origination of a loan identified as held for sale. Should the Company enter into a forward delivery commitment on a mandatory delivery arrangement with an investor it accounts for the forward delivery commitment upon execution of the contract. 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 for within AOCI, 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 AOCI 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. Customer Loan Swaps: The Bank 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 Bank 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 Bank'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 Bank'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: March 31, 2018 December 31, 2017 Balance Sheet Location Number of Positions Notional Fair Value Number of Positions Notional Fair Value Receive fixed, pay variable Other assets / (accrued interest and other liabilities) 63 $ 334,395 $ (10,707 ) 42 $ 226,884 $ (5,036 ) Receive fixed, pay variable Other assets / (accrued interest and other liabilities) 6 19,763 402 23 124,784 1,799 Pay fixed, receive variable Other assets / (accrued interest and other liabilities) 69 354,158 10,305 65 351,668 3,237 Total 138 $ 708,316 $ — 130 $ 703,336 $ — The Bank 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 Bank 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 has entered into a master netting arrangement with its counterparty and settles payments with the counterparty quarterly on a net basis. The Bank's arrangement with its institutional counterparty requires it to post cash or other assets as collateral for its FHLBB advance interest rate swap and customer loan swap 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 as requested. 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 has entered into a master netting arrangement with its counterparty and settles payments with the counterparty quarterly on a net basis. The interest rate swap arrangements contain provisions that require the Company to post cash or other assets as 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 will post collateral to the Company as requested. At March 31, 2018 , the Company posted $6.0 million of cash as collateral to the counterparty and was presented within other assets on the consolidated statements of financial condition. The details of the junior subordinated debt interest rate swaps for the periods indicated were as follows: March 31, December 31, 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% $ 343 $ 527 10,000 7/8/2009 6/30/2029 3-Month USD LIBOR 5.84% 1,695 2,133 10,000 5/6/2010 6/30/2030 3-Month USD LIBOR 5.71% 1,671 2,129 5,000 3/14/2011 3/30/2031 3-Month USD LIBOR 4.35% 899 1,137 8,000 5/4/2011 7/7/2031 3-Month USD LIBOR 4.14% 1,269 1,645 $ 43,000 $ 5,877 $ 7,571 (1) Presented within accrued interest and other liabilities on the consolidated statements of condition. For the three months ended March 31, 2018 and 2017, 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 three months ended March 31, 2018 and 2017 were $275,000 and $346,000 , respectively, and were classified as cash flows from operating activities in the Company's consolidated statements of cash flows. FHLBB Advance Interest Rate Swaps: On February 25, 2015, the Bank entered into two $25.0 million one year forward-starting interest rate swap arrangements with a counterparty to mitigate short-term interest rate risk. One contract matured on February 25, 2018 and the other is scheduled to mature 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 months ended March 31, 2018 and 2017, 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 its FHLBB advance interest rate swap and customer loan swap 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 will post collateral to the Bank as requested. The collateral posted by the Bank (or counterparty) is not readily available and is presented within cash and due from banks on the Company's consolidated statements of condition. At March 31, 2018 , the counterparty posted to the Bank $10.4 million of cash as collateral on its FHLBB advance interest rate swap and customer loan swap contracts. The collateral posted by the counterparty to the Bank is not readily available and has been designated as restricted cash and was presented within total cash, cash equivalents and restricted cash on the consolidated statements of condition. The details of the FHLBB advance interest rate swaps for the periods indicated were as follows: March 31, 2018 December 31, 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% $ — $ 20 25,000 2/25/2015 2/25/2019 1-Month USD LIBOR 1.74% 85 1 $ 85 $ 21 (1) Presented within other assets on the consolidated statements of condition. Net payments to the counterparty for the three months ended March 31, 2018 and 2017 were $9,000 and $109,000 , respectively, and were classified as cash flows from operating activities in the consolidated statements of cash flows. Interest Rate Locks Commitments: As part of the origination process of a residential loan, the Company may enter into rate lock agreements with its borrower, which is considered an interest rate lock commitment. If the Company has the intention to sell the loan upon origination, it will account for the interest rate lock commitment as a derivative. The Company's pipeline of mortgage loans with fixed-rate interest rate lock commitments for which the Company intends to sell the loan upon origination were as follows for the periods indicated: March 31, 2018 December 31, 2017 Balance Sheet Location Notional Fair Value Notional Fair Value Fixed-rate mortgage interest rate locks Other Assets $ 20,374 $ 308 $ 19,886 $ 307 Fixed-rate mortgage interest rate locks Accrued interest and other liabilities 4,379 (35 ) 1,860 (22 ) Total $ 24,753 $ 273 $ 21,746 $ 285 For the three months ended March 31, 2018 and 2017, the net unrealized loss from the change in fair value on the Company's fixed-rate mortgage rate locks reported within mortgage banking income, net, on the consolidated statements of income were $12,000 for each period. Forward Delivery Commitments: The Company typically enters into a forward delivery commitment with a secondary market investor, which has been approved by the Company within its normal governance process, at the onset of the loan origination process. The Company may enter into these arrangements with the secondary market investors on a "best effort" or "mandatory delivery" basis. The Company's normal practice is to typically enter into these arrangements on a "best effort" basis. The Company enters into these arrangements with the secondary market investors to manage its interest rate exposure. The Company accounts for the forward delivery commitment as a derivative (but does not designate as a hedge) upon origination of a loan for which it intends to sell. The Company's forward delivery commitments on loans held for sale was as follows for the periods indicated: March 31, 2018 December 31, 2017 Balance Sheet Location Notional Fair Value Notional Fair Value Forward delivery commitments ("best effort") Other Assets $ 8,155 $ 145 $ 6,692 $ 158 Forward delivery commitments ("best effort") Accrued interest and other liabilities 1,347 (22 ) 1,373 (16 ) Total $ 9,502 $ 123 $ 8,065 $ 142 For the three months ended March 31, 2018 and 2017, the net unrealized loss from the change in fair value on the Company's forward delivery commitments reported within mortgage banking income, net on the consolidated statements of income were $19,000 and $118,000 , 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 March 31 2018 2017 Derivatives designated as cash flow hedges: Effective portion of unrealized gains recognized within AOCI during the period, net of tax $ 1,328 $ 90 Net reclassification adjustment for effective portion of cash flow hedges included in interest expense, gross (1) $ 64 $ 455 (1) Reclassified into the consolidated statements of income within interest expense. The Company expects approximately $693,000 (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 March 31, 2018 . |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 2018 2017 Net income $ 12,820 $ 10,076 Dividends and undistributed earnings allocated to participating securities (1) (40 ) (45 ) Net income available to common shareholders $ 12,780 $ 10,031 Weighted-average common shares outstanding for basic EPS 15,541,975 15,488,848 Dilutive effect of stock-based awards (2) 61,405 79,791 Weighted-average common and potential common shares for diluted EPS 15,603,380 15,568,639 Earnings per common share (1) : Basic EPS $ 0.82 $ 0.65 Diluted EPS $ 0.82 $ 0.64 (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 and vesting of restricted stock units utilizing the treasury stock method. Not included are the unvested LTIP awards as they have not met the performance criteria for the periods presented. |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Costs and Estimated Fair Values of Available-For-Sale Securities | The following table summarizes 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 March 31, 2018 AFS Investments (carried at fair value): Obligations of states and political subdivisions $ 5,776 $ 55 $ (4 ) $ 5,827 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 517,823 490 (15,317 ) 502,996 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 293,371 6 (11,098 ) 282,279 Subordinated corporate bonds 5,485 119 (19 ) 5,585 Total AFS investments $ 822,455 $ 670 $ (26,438 ) $ 796,687 HTM Investments (carried at amortized cost): Obligations of states and political subdivisions $ 93,192 $ 130 $ (1,448 ) $ 91,874 Total HTM investments $ 93,192 $ 130 $ (1,448 ) $ 91,874 December 31, 2017 AFS Investments (carried at fair value): Obligations of states and political subdivisions $ 7,232 $ 103 $ — $ 7,335 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 510,176 597 (7,471 ) 503,302 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 279,575 14 (6,790 ) 272,799 Subordinated corporate bonds 5,484 173 — 5,657 Equity investments (1) 554 252 — 806 Total AFS investments $ 803,021 $ 1,139 $ (14,261 ) $ 789,899 HTM Investments (carried at amortized cost): Obligations of states and political subdivisions $ 94,073 $ 1,077 $ (237 ) $ 94,913 Total HTM investments $ 94,073 $ 1,077 $ (237 ) $ 94,913 The following table summarizes the cost and estimated fair values of the Company's investment in equity securities, FHLBB stock and FRBB stock as presented within other investments on the consolidated statements of condition, as of the dates indicated: Cost Unrealized Gains Unrealized Losses Fair Value March 31, 2018 Equity securities - bank stock (carried at fair value) (1) $ 544 $ 217 $ — $ 761 FHLBB (carried at cost) 17,639 — — 17,639 FRB (carried at cost) 5,374 — — 5,374 Total other investments $ 23,557 $ 217 $ — $ 23,774 December 31, 2017 FHLBB (carried at cost) $ 18,296 $ — $ — $ 18,296 FRB (carried at cost) 5,374 — — 5,374 Total other investments $ 23,670 $ — $ — $ 23,670 |
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 on AFS and HTM investments that were in a continuous loss position at March 31, 2018 and December 31, 2017 , by length of time that an individual security in each category has 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 March 31, 2018 AFS Investments: Obligations of states and political subdivisions $ 1,516 $ (4 ) $ — $ — $ 1,516 $ (4 ) Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 236,851 (5,661 ) 233,957 (9,656 ) 470,808 (15,317 ) Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 122,669 (2,308 ) 154,622 (8,790 ) 277,291 (11,098 ) Subordinated corporate bonds 965 (19 ) — — 965 (19 ) Total AFS investments $ 362,001 $ (7,992 ) $ 388,579 $ (18,446 ) $ 750,580 $ (26,438 ) HTM Investments: Obligations of states and political subdivisions $ 62,815 $ (958 ) $ 10,225 $ (490 ) $ 73,040 $ (1,448 ) Total HTM investments $ 62,815 $ (958 ) $ 10,225 $ (490 ) $ 73,040 $ (1,448 ) December 31, 2017 AFS Investments: Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises $ 221,466 $ (2,393 ) $ 233,971 $ (5,078 ) $ 455,437 $ (7,471 ) Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 102,612 (696 ) 164,389 (6,094 ) 267,001 (6,790 ) Total AFS investments $ 324,078 $ (3,089 ) $ 398,360 $ (11,172 ) $ 722,438 $ (14,261 ) HTM Investments: Obligations of states and political subdivisions $ 9,317 $ (57 ) $ 9,436 $ (180 ) $ 18,753 $ (237 ) Total HTM investments $ 9,317 $ (57 ) $ 9,436 $ (180 ) $ 18,753 $ (237 ) |
Amortized Cost and Estimated Fair Values of Debt Securities by Contractual Maturity | The amortized cost and estimated fair values of the Company's AFS and HTM investments by contractual maturity at March 31, 2018 , 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 Investments Due in one year or less $ 5,307 $ 5,302 Due after one year through five years 112,412 110,253 Due after five years through ten years 213,112 206,368 Due after ten years 491,624 474,764 $ 822,455 $ 796,687 HTM Investments Due in one year or less $ 1,418 $ 1,418 Due after one year through five years 3,783 3,796 Due after five years through ten years 13,035 12,954 Due after ten years 74,956 73,706 $ 93,192 $ 91,874 |
LOANS AND ALLOWANCE FOR LOAN 24
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 and December 31, 2017 was as follows: March 31, December 31, Residential real estate $ 860,533 $ 858,369 Commercial real estate 1,169,533 1,164,023 Commercial 378,015 373,400 Home equity 320,642 323,378 Consumer 18,011 18,149 HPFC 42,414 45,120 Total loans $ 2,789,148 $ 2,782,439 |
Schedule of Loan Balances by Portfolio Segment | The loan balances for each portfolio segment presented above are net of their respective unamortized fair value mark discount on acquired loans and net of unamortized loan origination costs totaling: March 31, December 31, Net unamortized fair value mark discount on acquired loans $ 5,703 $ 6,207 Net unamortized loan origination costs (958 ) (963 ) Total $ 4,745 $ 5,244 |
Summary of Activity in Allowance for Loan Losses | The following presents the activity in the ALL and select loan information by portfolio segment for the three months ended March 31, 2018 and 2017 , and for the year ended December 31, 2017 : Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer HPFC Total For The Three Months Ended March 31, 2018 ALL for the three months ended: Beginning balance $ 5,086 $ 11,863 $ 4,171 $ 2,367 $ 233 $ 451 $ 24,171 Loans charged off (31 ) (426 ) (171 ) (149 ) (26 ) — (803 ) Recoveries — 13 63 43 3 — 122 Provision (credit) (1) 442 (1,164 ) 63 166 20 (27 ) (500 ) Ending balance $ 5,497 $ 10,286 $ 4,126 $ 2,427 $ 230 $ 424 $ 22,990 ALL balance attributable to loans: Individually evaluated for impairment $ 553 $ 368 $ — $ 112 $ — $ — $ 1,033 Collectively evaluated for impairment 4,944 9,918 4,126 2,315 230 424 21,957 Total ending ALL $ 5,497 $ 10,286 $ 4,126 $ 2,427 $ 230 $ 424 $ 22,990 Loans: Individually evaluated for impairment $ 5,059 $ 3,961 $ 1,714 $ 491 $ — $ — $ 11,225 Collectively evaluated for impairment 855,474 1,165,572 376,301 320,151 18,011 42,414 2,777,923 Total ending loans balance $ 860,533 $ 1,169,533 $ 378,015 $ 320,642 $ 18,011 $ 42,414 $ 2,789,148 For The Three Months Ended March 31, 2017 ALL for the three months ended: Beginning balance $ 4,160 $ 12,154 $ 3,755 $ 2,194 $ 181 $ 672 $ 23,116 Loans charged off (5 ) (3 ) (136 ) (1 ) (14 ) — (159 ) Recoveries — 103 77 1 2 — 183 Provision (credit) (1) 116 472 119 (87 ) 6 (45 ) 581 Ending balance $ 4,271 $ 12,726 $ 3,815 $ 2,107 $ 175 $ 627 $ 23,721 ALL balance attributable to loans: Individually evaluated for impairment $ 485 $ 1,100 $ — $ 83 $ — $ 66 $ 1,734 Collectively evaluated for impairment 3,786 11,626 3,815 2,024 175 561 21,987 Total ending ALL $ 4,271 $ 12,726 $ 3,815 $ 2,107 $ 175 $ 627 $ 23,721 Loans: Individually evaluated for impairment $ 4,408 $ 13,191 $ 1,994 $ 430 $ 7 $ 98 $ 20,128 Collectively evaluated for impairment 815,231 1,083,284 331,613 322,396 16,662 55,825 $ 2,625,011 Total ending loans balance $ 819,639 $ 1,096,475 $ 333,607 $ 322,826 $ 16,669 $ 55,923 $ 2,645,139 Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer HPFC Total For The Year Ended December 31, 2017 ALL: Beginning balance $ 4,160 $ 12,154 $ 3,755 $ 2,194 $ 181 $ 672 $ 23,116 Loans charged off (482 ) (124 ) (1,014 ) (434 ) (124 ) (290 ) (2,468 ) Recoveries 30 141 301 2 17 6 497 Provision (credit) (1) 1,378 (308 ) 1,129 605 159 63 3,026 Ending balance $ 5,086 $ 11,863 $ 4,171 $ 2,367 $ 233 $ 451 $ 24,171 ALL balance attributable to loans: Individually evaluated for impairment $ 568 $ 1,441 $ — $ — $ — $ — $ 2,009 Collectively evaluated for impairment 4,518 10,422 4,171 2,367 233 451 22,162 Total ending ALL $ 5,086 $ 11,863 $ 4,171 $ 2,367 $ 233 $ 451 $ 24,171 Loans: Individually evaluated for impairment $ 5,171 $ 6,199 $ 1,791 $ 429 $ — $ — $ 13,590 Collectively evaluated for impairment 853,198 1,157,824 371,609 322,949 18,149 45,120 2,768,849 Total ending loans balance $ 858,369 $ 1,164,023 $ 373,400 $ 323,378 $ 18,149 $ 45,120 $ 2,782,439 (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 March 31, 2018 and 2017, and December 31, 2017 , the reserve for unfunded commitments was $23,000 , $9,000 and $20,000 , respectively. |
Schedule of Provision for Credit Losses | The following reconciles the three months ended March 31, 2018 and 2017, and year ended December 31, 2017 (credit) provision for loan losses to the (credit) provision for credit losses as presented on the consolidated statement of income: Three Months Ended Year Ended December 31, 2017 2018 2017 (Credit) provision for loan losses $ (500 ) $ 581 $ 3,026 Change in reserve for unfunded commitments 3 (2 ) 9 (Credit) provision for credit losses $ (497 ) $ 579 $ 3,035 |
Credit Risk Exposure Indicators by Portfolio Segment | The following 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 March 31, 2018 Pass (Grades 1-6) $ 847,822 $ 1,146,947 $ 361,377 $ — $ — $ 40,768 $ 2,396,914 Performing — — — 319,178 18,011 — 337,189 Special Mention (Grade 7) 662 8,510 12,437 — — 174 21,783 Substandard (Grade 8) 12,049 14,076 4,201 — — 1,472 31,798 Non-performing — — — 1,464 — — 1,464 Total $ 860,533 $ 1,169,533 $ 378,015 $ 320,642 $ 18,011 $ 42,414 $ 2,789,148 December 31, 2017 Pass (Grades 1-6) $ 846,394 $ 1,130,235 $ 354,904 $ — $ — $ 43,049 $ 2,374,582 Performing — — — 321,727 18,149 — 339,876 Special Mention (Grade 7) 922 9,154 12,517 — — 191 22,784 Substandard (Grade 8) 11,053 24,634 5,979 — — 1,880 43,546 Non-performing — — — 1,651 — — 1,651 Total $ 858,369 $ 1,164,023 $ 373,400 $ 323,378 $ 18,149 $ 45,120 $ 2,782,439 |
Loan Aging Analysis by Portfolio Segment | 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 March 31, 2018 Residential real estate $ 2,969 $ 533 $ 4,762 $ 8,264 $ 852,269 $ 860,533 $ — $ 6,185 Commercial real estate 1,455 72 4,167 5,694 1,163,839 1,169,533 — 4,603 Commercial 144 103 1,532 1,779 376,236 378,015 — 1,991 Home equity 1,121 101 1,083 2,305 318,337 320,642 — 1,464 Consumer 14 9 — 23 17,988 18,011 — — HPFC 109 419 655 1,183 41,231 42,414 — 655 Total $ 5,812 $ 1,237 $ 12,199 $ 19,248 $ 2,769,900 $ 2,789,148 $ — $ 14,898 December 31, 2017 Residential real estate $ 3,871 $ 1,585 $ 4,021 $ 9,477 $ 848,892 $ 858,369 $ — $ 4,979 Commercial real estate 849 323 5,528 6,700 1,157,323 1,164,023 — 5,642 Commercial 329 359 1,535 2,223 371,177 373,400 — 2,000 Home equity 1,046 173 1,329 2,548 320,830 323,378 — 1,650 Consumer 57 10 — 67 18,082 18,149 — — HPFC 139 1,372 419 1,930 43,190 45,120 — 1,043 Total $ 6,291 $ 3,822 $ 12,832 $ 22,945 $ 2,759,494 $ 2,782,439 $ — $ 15,314 |
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 March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017 Residential real estate 24 24 $ 3,581 $ 3,604 $ 410 $ 452 Commercial real estate 2 3 354 976 20 16 Commercial 7 7 1,339 1,345 — — Home equity 2 2 306 307 — — Total 35 36 $ 5,580 $ 6,232 $ 430 $ 468 |
Schedule of Loan Modifications | The following represents loan modifications that qualify as TDRs that occurred for the three months ended March 31, 2018 and 2017 : Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Specific Reserve 2018 2017 2018 2017 2018 2017 2018 2017 Residential real estate: Maturity concession — 1 $ — $ 151 $ — $ 151 $ — $ 15 Total — 1 $ — $ 151 $ — $ 151 $ — $ 15 |
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 the three months ended March 31, 2018 and 2017, and as of and for the year-ended December 31, 2017: For the Three Months Ended Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized March 31, 2018 : With an allowance recorded: Residential real estate $ 3,544 $ 3,544 $ 553 $ 3,745 $ 30 Commercial real estate 3,591 3,591 368 4,275 1 Commercial — — — — — Home equity 147 147 112 49 — Consumer — — — — — HPFC — — — — — Ending balance 7,282 7,282 1,033 8,069 31 Without an allowance recorded: Residential real estate 1,515 1,791 — 1,350 7 Commercial real estate 370 677 — 637 3 Commercial 1,714 2,923 — 1,740 2 Home equity 344 468 — 396 2 Consumer — — — — — HPFC — — — — — Ending balance 3,943 5,859 — 4,123 14 Total impaired loans $ 11,225 $ 13,141 $ 1,033 $ 12,192 $ 45 March 31, 2017: With an allowance recorded: Residential real estate $ 3,048 $ 3,048 $ 485 $ 3,025 $ 26 Commercial real estate 11,791 11,791 1,100 11,654 — Commercial 1 1 — — — Home equity 297 297 83 298 — Consumer — — — — — HPFC 98 98 66 98 — Ending Balance 15,235 15,235 1,734 15,075 26 Without an allowance recorded: Residential real estate 1,360 1,740 — 1,292 2 Commercial real estate 1,400 1,707 — 1,704 10 Commercial 1,993 3,167 — 2,024 3 Home equity 133 269 — 139 — Consumer 7 10 — 7 — HPFC — — — — — Ending Balance 4,893 6,893 — 5,166 15 Total impaired loans $ 20,128 $ 22,128 $ 1,734 $ 20,241 $ 41 For the Year Ended Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2017: With an allowance recorded: Residential real estate $ 3,858 $ 3,858 $ 568 $ 3,177 $ 131 Commercial real estate 5,422 5,422 1,441 8,900 22 Commercial — — — 31 — Home equity — — — 125 — Consumer — — — — — HPFC — — — 24 — Ending Balance 9,280 9,280 2,009 12,257 153 Without an allowance recorded: Residential real estate 1,313 1,673 — 1,345 15 Commercial real estate 777 1,084 — 1,132 29 Commercial 1,791 2,964 — 1,920 10 Home equity 429 495 — 310 8 Consumer — — — 2 — HPFC — — — — — Ending Balance 4,310 6,216 — 4,709 62 Total impaired loans $ 13,590 $ 15,496 $ 2,009 $ 16,966 $ 215 |
REGULATORY CAPITAL REQUIREMEN25
REGULATORY CAPITAL REQUIREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following table presents the Company and Bank's regulatory capital ratios at the periods indicated: March 31, 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 plus Capital Conservation Buffer Minimum Regulatory Provision To Be "Well Capitalized" Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Camden National Corporation: Total risk-based capital ratio $ 403,941 14.32 % 9.88 % N/A $ 396,451 14.14 % 9.25 % N/A Tier I risk-based capital ratio 365,930 12.98 % 7.88 % N/A 357,261 12.74 % 7.25 % N/A Common equity Tier I risk-based capital ratio 322,930 11.45 % 6.38 % N/A 316,677 11.30 % 5.75 % N/A Tier I leverage capital ratio 365,930 9.23 % 4.00 % N/A 357,261 9.07 % 4.00 % N/A Camden National Bank: Total risk-based capital ratio $ 375,434 13.31 % 9.88 % 10.00 % $ 369,540 13.18 % 9.25 % 10.00 % Tier I risk-based capital ratio 352,422 12.49 % 7.88 % 8.00 % 345,350 12.32 % 7.25 % 8.00 % Common equity Tier I risk-based capital ratio 352,422 12.49 % 6.38 % 6.50 % 345,350 12.32 % 5.75 % 6.50 % Tier I leverage capital ratio 352,422 8.92 % 4.00 % 5.00 % 345,350 8.80 % 4.00 % 5.00 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The Company's effective income tax rate for the three months ended March 31, 2018 and 2017 was as follows: Three Months Ended 2018 2017 Income tax expense $ 3,079 $ 4,344 Income before income tax expense $ 15,899 $ 14,420 Effective tax rate (1) 19.4 % 30.1 % (1) On December 22, 2017, the Tax Act was enacted, reducing the U.S. federal corporate income tax rate from 35.0% to 21.0%, effective January 1, 2018. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Period Benefit Cost | The components of net periodic benefit cost for the periods ended March 31, 2018 and 2017 were as follows: Supplemental Executive Retirement Plan: Three Months Ended Net periodic pension cost Income Statement Presentation 2018 2017 Service cost Salaries and employee benefits $ 112 $ 84 Interest cost Other expenses 122 112 Recognized net actuarial loss Other expenses 140 62 Total $ 374 $ 258 Other Postretirement Benefit Plan: Three Months Ended Net periodic postretirement benefit cost Income Statement Presentation 2018 2017 Service cost Salaries and employee benefits $12 $13 Interest cost Other expenses 33 36 Recognized net actuarial loss Other expenses 13 10 Amortization of prior service credit Other expenses (6) (6) Total $52 $53 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowed Funds Outstanding | The following summarizes the Company's short-term and long-term borrowed funds as presented on the consolidated statements of condition at: March 31, December 31, 2017 Short-Term Borrowings (mature within one year): Customer repurchase agreements $ 256,274 $ 244,646 FHLBB borrowings 135,000 250,000 Overnight borrowings 161,350 47,150 Total short-term borrowings $ 552,624 $ 541,796 Long-Term Borrowings (maturity greater than one year): FHLBB borrowings $ 10,000 $ 10,000 Capital lease obligation 773 791 Total long-term borrowings $ 10,773 $ 10,791 |
REPURCHASE AGREEMENTS (Tables)
REPURCHASE AGREEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 and December 31, 2017 : Remaining Contractual Maturity of the Agreements Overnight and Continuous Up to 30 Days 30 - 90 Days Greater than 90 Days Total March 31, 2018 Customer Repurchase Agreements: Obligations of states and political subdivisions $ 1,125 $ — $ — $ — $ 1,125 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 90,903 — — — 90,903 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 164,246 — — — 164,246 Total Customer Repurchase Agreements 256,274 — — — 256,274 Total Repurchase Agreements $ 256,274 $ — $ — $ — $ 256,274 December 31, 2017 Customer Repurchase Agreements: Obligations of states and political subdivisions $ 630 $ — $ — $ — $ 630 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 98,460 — — — 98,460 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 145,556 — — — 145,556 Total Customer Repurchase Agreements 244,646 — — — 244,646 Total Repurchase Agreements $ 244,646 $ — $ — $ — $ 244,646 |
FAIR VALUE MEASUREMENT AND DI30
FAIR VALUE MEASUREMENT AND DISCLOSURE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 and December 31, 2017 , 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) March 31, 2018 Financial assets: Loans held for sale $ 9,548 $ — $ 9,548 $ — AFS investments: Obligations of states and political subdivisions 5,827 — 5,827 — Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 502,996 — 502,996 — Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 282,279 — 282,279 — Subordinated corporate bonds 5,585 — 5,585 — Equity securities - bank stock 761 — 761 — Customer loan swaps 10,707 — 10,707 — Fixed-rate mortgage interest rate lock commitments 308 — 308 — Forward delivery commitments 145 — 145 — FHLBB advance interest rate swaps 85 — 85 — Financial liabilities: Junior subordinated debt interest rate swaps 5,877 — 5,877 — Customer loan swaps 10,707 — 10,707 — Fixed-rate mortgage interest rate lock commitments 35 — 35 — Forward delivery commitments 22 — 22 — December 31, 2017 Financial assets: Loans held for sale $ 8,103 $ — $ 8,103 $ — AFS investments: Obligations of states and political subdivisions 7,335 — 7,335 — Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 503,302 — 503,302 — Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 272,799 — 272,799 — Subordinated corporate bonds 5,657 — 5,657 — Equity investments 806 — 806 — Customer loan swaps 5,036 — 5,036 — Fixed-rate mortgage interest rate lock commitments 307 — 307 — Forward delivery commitments 158 — 158 — FHLBB advance interest rate swaps 21 — 21 — Financial liabilities: Junior subordinated debt interest rate swaps 7,571 — 7,571 — Customer loan swaps 5,036 — 5,036 — Fixed-rate mortgage interest rate lock commitments 22 — 22 — Forward delivery commitments 16 — 16 — |
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 March 31, 2018 and December 31, 2017 : Fair Value Readily Available Market Prices (Level 1) Observable Market Data (Level 2) Company Determined Fair Value (Level 3) March 31, 2018 Financial assets: Collateral-dependent impaired loans $ 3,600 $ — $ — $ 3,600 Non-financial assets: OREO 130 — — 130 December 31, 2017 Financial assets: Collateral-dependent impaired loans $ 3,696 $ — $ — $ 3,696 Non-financial assets: OREO 130 — — 130 |
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 March 31, 2018 and December 31, 2017 : Fair Value Valuation Methodology Unobservable input Discount Range (Weighted-Average) March 31, 2018 Collateral-dependent impaired loans: Partially charged-off $ 18 Market approach appraisal of collateral Management adjustment of appraisal 0% (0%) Estimated selling costs 10% (10%) Specifically reserved 3,582 Market approach appraisal of collateral Management adjustment of appraisal 0% (0%) Estimated selling costs 10% (10%) OREO 130 Market approach appraisal of collateral Management adjustment of appraisal 20% (20%) Estimated selling cost 10% (10%) December 31, 2017 Collateral-dependent impaired loans: Partially charged-off $ 86 Market approach appraisal of collateral Management adjustment 0 - 50% (18%) Estimated selling costs 0 - 10% (6%) Specifically reserved 3,610 Market approach appraisal of collateral Management adjustment 0% (0%) Estimated selling costs 10% (10%) OREO 130 Market approach appraisal of collateral Management adjustment 20% (20%) Estimated selling costs 10% (10%) |
Carrying Amounts and Estimated Fair Value for Financial Instrument Assets and Liabilities | The estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below as of the periods indicated: Carrying Amount Fair Value Readily Available Market Prices (Level 1) Observable Market Prices (Level 2) Company Determined Market Prices (Level 3) March 31, 2018 Financial assets: HTM securities $ 93,192 $ 91,874 $ — $ 91,874 $ — Residential real estate loans (1) 855,036 842,132 — — 842,132 Commercial real estate loans (1) 1,159,247 1,119,406 — — 1,119,406 Commercial loans (1)(2) 415,879 404,925 — — 404,925 Home equity loans (1) 318,215 311,142 — — 311,142 Consumer loans (1) 17,781 16,880 — — 16,880 Servicing assets 972 1,840 — — 1,840 Financial liabilities: Time deposits $ 538,957 $ 532,244 $ — $ 532,244 $ — Short-term borrowings 552,624 552,289 — 552,289 — Long-term borrowings 10,773 10,658 — 10,658 — Subordinated debentures 58,950 45,588 — 45,588 — December 31, 2017 Financial assets: HTM securities $ 94,073 $ 94,913 $ — $ 94,913 $ — Residential real estate loans (1) 853,283 853,056 — — 853,056 Commercial real estate loans (1) 1,152,160 1,115,618 — — 1,115,618 Commercial loans (1)(2) 413,898 401,902 — — 401,902 Home equity loans (1) 321,011 318,230 — — 318,230 Consumer loans (1) 17,916 17,335 — — 17,335 Servicing assets 1,025 1,766 — — 1,766 Financial liabilities: Time deposits $ 517,032 $ 512,483 $ — $ 512,483 $ — Short-term borrowings 541,796 541,605 — 541,605 — Long-term borrowings 10,791 10,777 — 10,777 — Subordinated debentures 58,911 44,333 — 44,333 — (1) The presented carrying amount is net of the allocated ALL. (2) Includes the HPFC loan portfolio. |
COMMITMENTS, CONTINGENCIES AN31
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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: March 31, December 31, Lending-Related Instruments: Loan origination commitments and unadvanced lines of credit: Home equity $ 501,127 $ 477,401 Residential 36,352 41,368 Commercial and commercial real estate 31,667 49,482 Letters of credit 3,426 2,848 Other commitments 1,151 523 Derivative Financial Instruments: Customer loan swaps $ 708,316 $ 703,336 Junior subordinated debt interest rate swaps 43,000 43,000 FHLBB advance interest rate swaps 25,000 50,000 Interest rate lock commitments 24,753 21,746 Forward delivery commitments 9,502 8,065 |
Summary of Derivative Financial Instruments | The details of the junior subordinated debt interest rate swaps for the periods indicated were as follows: March 31, December 31, 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% $ 343 $ 527 10,000 7/8/2009 6/30/2029 3-Month USD LIBOR 5.84% 1,695 2,133 10,000 5/6/2010 6/30/2030 3-Month USD LIBOR 5.71% 1,671 2,129 5,000 3/14/2011 3/30/2031 3-Month USD LIBOR 4.35% 899 1,137 8,000 5/4/2011 7/7/2031 3-Month USD LIBOR 4.14% 1,269 1,645 $ 43,000 $ 5,877 $ 7,571 (1) Presented within accrued interest and other liabilities on the consolidated statements of condition. The details of the FHLBB advance interest rate swaps for the periods indicated were as follows: March 31, 2018 December 31, 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% $ — $ 20 25,000 2/25/2015 2/25/2019 1-Month USD LIBOR 1.74% 85 1 $ 85 $ 21 (1) Presented within other assets 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: March 31, 2018 December 31, 2017 Balance Sheet Location Number of Positions Notional Fair Value Number of Positions Notional Fair Value Receive fixed, pay variable Other assets / (accrued interest and other liabilities) 63 $ 334,395 $ (10,707 ) 42 $ 226,884 $ (5,036 ) Receive fixed, pay variable Other assets / (accrued interest and other liabilities) 6 19,763 402 23 124,784 1,799 Pay fixed, receive variable Other assets / (accrued interest and other liabilities) 69 354,158 10,305 65 351,668 3,237 Total 138 $ 708,316 $ — 130 $ 703,336 $ — |
Schedule of Interest Rate Derivatives | The Company's pipeline of mortgage loans with fixed-rate interest rate lock commitments for which the Company intends to sell the loan upon origination were as follows for the periods indicated: March 31, 2018 December 31, 2017 Balance Sheet Location Notional Fair Value Notional Fair Value Fixed-rate mortgage interest rate locks Other Assets $ 20,374 $ 308 $ 19,886 $ 307 Fixed-rate mortgage interest rate locks Accrued interest and other liabilities 4,379 (35 ) 1,860 (22 ) Total $ 24,753 $ 273 $ 21,746 $ 285 |
Forward Delivery Commitments | The Company's forward delivery commitments on loans held for sale was as follows for the periods indicated: March 31, 2018 December 31, 2017 Balance Sheet Location Notional Fair Value Notional Fair Value Forward delivery commitments ("best effort") Other Assets $ 8,155 $ 145 $ 6,692 $ 158 Forward delivery commitments ("best effort") Accrued interest and other liabilities 1,347 (22 ) 1,373 (16 ) Total $ 9,502 $ 123 $ 8,065 $ 142 |
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 March 31 2018 2017 Derivatives designated as cash flow hedges: Effective portion of unrealized gains recognized within AOCI during the period, net of tax $ 1,328 $ 90 Net reclassification adjustment for effective portion of cash flow hedges included in interest expense, gross (1) $ 64 $ 455 (1) Reclassified into the consolidated statements of income within interest expense. |
RECENT ACCOUNTING PRONOUNCEME32
RECENT ACCOUNTING PRONOUNCEMENTS NEW ACCOUNTING PRONOUNCEMENTS (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Equity investments gain (loss) | $ (35) | |
Retained Earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect adjustment | $ 198 | |
Accounting Standards Update 2016-01 | AOCI | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect adjustment | $ (198) | |
Accounting Standards Update 2016-01 | Retained Earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect adjustment | $ 198 |
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 | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net income | $ 12,820 | $ 10,076 |
Dividends and undistributed earnings allocated to participating securities | (40) | (45) |
Net income available to common shareholders | $ 12,780 | $ 10,031 |
Weighted-average common shares outstanding for basic EPS | 15,541,975 | 15,488,848 |
Dilutive effect of stock-based awards (shares) | 61,405 | 79,791 |
Weighted-average common and potential common shares for diluted EPS (shares) | 15,603,380 | 15,568,639 |
Basic EPS (in dollars per share) | $ 0.82 | $ 0.65 |
Diluted EPS (in dollars per share) | $ 0.82 | $ 0.64 |
Antidilutive Stock options (shares) | 0 | 0 |
INVESTMENTS (Summary of Amortiz
INVESTMENTS (Summary of Amortized Costs and Estimated Fair Values of Available-For-Sale Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Investments [Line Items] | ||
Available-for-sale securities, at fair value | $ 796,687 | $ 789,899 |
Held-to-maturity securities, at amortized cost | 93,192 | 94,073 |
Held-to-maturity securities, Unrealized Gains | 130 | 1,077 |
Held-to-maturity securities, Unrealized Losses | (1,448) | (237) |
Held-to-maturity Securities, Fair Value | 91,874 | 94,913 |
Obligations of states and political subdivisions | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Amortized Cost | 5,776 | 7,232 |
Available-for-sale, Unrealized Gains | 55 | 103 |
Available-for-sale, Unrealized Losses | (4) | 0 |
Available-for-sale securities, at fair value | 5,827 | 7,335 |
Held-to-maturity securities, at amortized cost | 93,192 | 94,073 |
Held-to-maturity securities, Unrealized Gains | 130 | 1,077 |
Held-to-maturity securities, Unrealized Losses | (1,448) | (237) |
Held-to-maturity Securities, Fair Value | 91,874 | 94,913 |
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Amortized Cost | 517,823 | 510,176 |
Available-for-sale, Unrealized Gains | 490 | 597 |
Available-for-sale, Unrealized Losses | (15,317) | (7,471) |
Available-for-sale securities, at fair value | 502,996 | 503,302 |
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Amortized Cost | 293,371 | 279,575 |
Available-for-sale, Unrealized Gains | 6 | 14 |
Available-for-sale, Unrealized Losses | (11,098) | (6,790) |
Available-for-sale securities, at fair value | 282,279 | 272,799 |
Corporate Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Amortized Cost | 5,485 | 5,484 |
Available-for-sale, Unrealized Gains | 119 | 173 |
Available-for-sale, Unrealized Losses | (19) | 0 |
Available-for-sale securities, at fair value | 5,585 | 5,657 |
Equity Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Amortized Cost | 554 | |
Available-for-sale, Unrealized Gains | 252 | |
Available-for-sale, Unrealized Losses | 0 | |
Available-for-sale securities, at fair value | 806 | |
Debt Securities [Member] | ||
Schedule of Investments [Line Items] | ||
Available-for-sale, Amortized Cost | 822,455 | 803,021 |
Available-for-sale, Unrealized Gains | 670 | 1,139 |
Available-for-sale, Unrealized Losses | (26,438) | (14,261) |
Available-for-sale securities, at fair value | $ 796,687 | $ 789,899 |
INVESTMENTS (Schedule of Unreal
INVESTMENTS (Schedule of Unrealized Gross Losses and Estimated Fair values of Investment Securities) (Details) $ in Thousands | Mar. 31, 2018USD ($)security | Dec. 31, 2017USD ($)security |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 328 | 209 |
Fair Value - Less Than 12 Months | $ 362,001 | $ 324,078 |
Unrealized Losses - Less Than 12 Months | (7,992) | (3,089) |
Fair Value - 12 Months of More | 388,579 | 398,360 |
Unrealized Losses - 12 Months or More | (18,446) | (11,172) |
Fair Value | 750,580 | 722,438 |
Unrealized losses | (26,438) | (14,261) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 62,815 | 9,317 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (958) | (57) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 10,225 | 9,436 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (490) | (180) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 73,040 | 18,753 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | (1,448) | (237) |
AFS and HTM securities in Continuous Unrealized Loss Position | $ 823,600 | $ 741,200 |
Unrealized Loss as a Percent of Fair Value | 3.00% | 2.00% |
AFS and HTM Securities Unrealized Loss Accumulated in Investments | $ 27,900 | $ 14,500 |
Mortgage Backed Securities and Collateralized Mortgage Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
AFS and HTM Securities Unrealized Loss Accumulated in Investments | 18,400 | 11,200 |
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 | 236,851 | 221,466 |
Unrealized Losses - Less Than 12 Months | (5,661) | (2,393) |
Fair Value - 12 Months of More | 233,957 | 233,971 |
Unrealized Losses - 12 Months or More | (9,656) | (5,078) |
Fair Value | 470,808 | 455,437 |
Unrealized losses | (15,317) | (7,471) |
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 | 122,669 | 102,612 |
Unrealized Losses - Less Than 12 Months | (2,308) | (696) |
Fair Value - 12 Months of More | 154,622 | 164,389 |
Unrealized Losses - 12 Months or More | (8,790) | (6,094) |
Fair Value | 277,291 | 267,001 |
Unrealized losses | (11,098) | (6,790) |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value - Less Than 12 Months | 965 | |
Unrealized Losses - Less Than 12 Months | (19) | |
Fair Value - 12 Months of More | 0 | |
Unrealized Losses - 12 Months or More | 0 | |
Fair Value | 965 | |
Unrealized losses | (19) | |
Obligations of states and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value - Less Than 12 Months | 1,516 | |
Unrealized Losses - Less Than 12 Months | (4) | |
Fair Value - 12 Months of More | 0 | |
Unrealized Losses - 12 Months or More | 0 | |
Fair Value | 1,516 | |
Unrealized losses | (4) | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 62,815 | 9,317 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (958) | (57) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 10,225 | 9,436 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (490) | (180) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 73,040 | 18,753 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ (1,448) | $ (237) |
INVESTMENTS (Schedule of Amorti
INVESTMENTS (Schedule of Amortized Cost and Estimated Fair Values of Debt Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Available-for-sale, Amortized Cost | ||
Due in one year or less | $ 5,307 | |
Due after one year through five years | 112,412 | |
Due after five years through ten years | 213,112 | |
Due after ten years | 491,624 | |
Amortized cost, total | 822,455 | |
Available-for-sale, Fair Value | ||
Due in one year or less | 5,302 | |
Due after one year through five years | 110,253 | |
Due after five years through ten years | 206,368 | |
Due after ten years | 474,764 | |
Fair value, total | 796,687 | |
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis [Abstract] | ||
Due in one year or less | 1,418 | |
Due after one year through five years | 3,783 | |
Due after five years through ten years | 13,035 | |
Due after ten years | 74,956 | |
Held-to-maturity securities, at amortized cost | 93,192 | $ 94,073 |
Held-to-maturity Securities, Debt Maturities, Single Maturity Date, Fair Value [Abstract] | ||
Due in one year or less | 1,418 | |
Due after one year through five years | 3,796 | |
Due after five years through ten years | 12,954 | |
Due after ten years | 73,706 | |
Held-to-maturity Securities, Fair Value | $ 91,874 | $ 94,913 |
INVESTMENTS (Narrative) (Detail
INVESTMENTS (Narrative) (Detail) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018USD ($)security | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)security | |
Schedule of Investments [Line Items] | |||
Net unrealized gains (losses) on available-for-sale securities, net of tax | $ (20,227) | $ (10,300) | |
Deferred tax assets, unrealized losses on available for sale securities | 5,500 | $ 2,800 | |
Payments to acquire investments | $ 50,100 | $ 77,300 | |
AFS securities in unrealized loss positions, number of positions | security | 328 | 209 | |
AFS and HTM securities in Continuous Unrealized Loss Position | $ 823,600 | $ 741,200 | |
AFS and HTM Securities Unrealized Loss Accumulated in Investments | 27,900 | 14,500 | |
Fair Value - 12 Months of More | $ 388,579 | $ 398,360 | |
Unrealized Loss as a Percent of Fair Value | 3.00% | 2.00% | |
Investment securities sold, carrying amount | $ 19,400 | ||
Federal Home Loan Bank Stock | 17,639 | $ 18,296 | |
Federal Reserve Bank Stock | 5,374 | 5,374 | |
Security pledged as collateral, amortized cost | 684,300 | 702,500 | |
Security pledged as collateral, fair value | 661,900 | 691,200 | |
Unrealized loss, change in fair value of bank stock equity securities | 35 | ||
Gain on sale of other investment | 195 | ||
Residential Mortgage Backed Securities [Member] | |||
Schedule of Investments [Line Items] | |||
Fair Value - 12 Months of More | 388,600 | ||
Collateralized Mortgage Backed Securities [Member] | |||
Schedule of Investments [Line Items] | |||
Fair Value - 12 Months of More | 398,400 | ||
Mortgage Backed Securities and Collateralized Mortgage Obligations [Member] | |||
Schedule of Investments [Line Items] | |||
AFS and HTM Securities Unrealized Loss Accumulated in Investments | 18,400 | 11,200 | |
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | |||
Schedule of Investments [Line Items] | |||
Fair Value - 12 Months of More | 233,957 | 233,971 | |
Collateralized Mortgage Obligations [Member] | |||
Schedule of Investments [Line Items] | |||
Fair Value - 12 Months of More | $ 154,622 | $ 164,389 |
INVESTMENTS (Schedule of Amor38
INVESTMENTS (Schedule of Amortized Cost and Fair Value of Other Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Equity securities - bank stock, Amortized Cost | $ 544 | ||
Equity securities - bank stock, Unrealized Gains | 217 | ||
Equity securities - bank stock, Unrealized Losses | 0 | ||
Equity securities - bank stock, Fair Value | 761 | ||
FHLBB (carried at cost) | 17,639 | $ 18,296 | |
FRB (carried at cost) | 5,374 | 5,374 | |
Other Investments, Amortized Cost | 23,557 | 23,670 | |
Other Investments, Unrealized Gain | 217 | $ 0 | |
Other Investments, Unrealized Loss | 0 | $ 0 | |
Other Investments, Fair Value | $ 23,774 | $ 23,670 |
LOANS AND ALLOWANCE FOR LOAN 39
LOANS AND ALLOWANCE FOR LOAN LOSSES (Composition of Loan Portfolio) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Net unamortized loan origination costs | $ (958) | $ (963) | |
Loans | 2,789,148 | 2,782,439 | $ 2,645,139 |
Residential Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 860,533 | 858,369 | |
Loans | 860,533 | 858,369 | 819,639 |
Commercial Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 1,169,533 | 1,164,023 | |
Loans | 1,169,533 | 1,164,023 | 1,096,475 |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 378,015 | 373,400 | |
Loans | 378,015 | 373,400 | 333,607 |
Home Equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 320,642 | 323,378 | |
Loans | 320,642 | 323,378 | 322,826 |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 18,011 | 18,149 | |
Loans | 18,011 | 18,149 | 16,669 |
HPFC Portfolio Segment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 42,414 | 45,120 | |
Loans | $ 42,414 | $ 45,120 | $ 55,923 |
LOANS AND ALLOWANCE FOR LOAN 40
LOANS AND ALLOWANCE FOR LOAN LOSSES (Narrative) (Details) | 3 Months Ended | |||
Mar. 31, 2018USD ($)loan | Mar. 31, 2017USD ($)loan | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Non-Accrual Loans | $ 14,898,000 | $ 15,314,000 | ||
Other industry exposures | 0 | |||
Interest lost on nonaccrual loans | $ 162,000 | $ 210,000 | ||
Number of TDRs | loan | 0 | 1 | ||
Loans modified | loan | 0 | 0 | ||
Financing Receivable, Individually Evaluated for Impairment | $ 11,225,000 | $ 20,128,000 | 13,590,000 | |
Proceeds from the sale of mortgage loans | 46,426,000 | 44,320,000 | ||
Gain on sale of mortgage loans | 1,220,000 | 1,280,000 | ||
Loans held for sale, at fair value | 9,548,000 | 8,103,000 | ||
Financing Receivable, Allowance for Credit Losses | 22,990,000 | 23,721,000 | 24,171,000 | $ 23,116,000 |
FHLB advances, general debt obligations, pledged collateral | 1,100,000,000 | 1,100,000,000 | ||
Derivative, Fair Value, Net | 123,000 | 142,000 | ||
Unrealized Gain (Loss) on Derivatives | (12,000) | (12,000) | ||
Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans restructured due to credit difficulties that are now performing | 4,400,000 | 5,000,000 | ||
Financing receivables impaired TDR non-performing | 1,200,000 | 1,200,000 | ||
Residential Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Non-Accrual Loans | 6,185,000 | 4,979,000 | ||
Financing Receivable, Individually Evaluated for Impairment | 5,059,000 | 4,408,000 | 5,171,000 | |
Mortgage Loans in Process of Foreclosure, Amount | 2,000,000 | 1,900,000 | ||
Financing Receivable, Allowance for Credit Losses | 5,497,000 | 4,271,000 | 5,086,000 | 4,160,000 |
Commercial Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Non-Accrual Loans | 4,603,000 | 5,642,000 | ||
Financing Receivable, Individually Evaluated for Impairment | 3,961,000 | 13,191,000 | 6,199,000 | |
Financing Receivable, Allowance for Credit Losses | 10,286,000 | 12,726,000 | 11,863,000 | 12,154,000 |
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Non-Accrual Loans | 1,991,000 | 2,000,000 | ||
Financing Receivable, Individually Evaluated for Impairment | 1,714,000 | 1,994,000 | 1,791,000 | |
Financing Receivable, Allowance for Credit Losses | 4,126,000 | 3,815,000 | 4,171,000 | 3,755,000 |
Home Equity | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Non-Accrual Loans | 1,464,000 | 1,650,000 | ||
Financing Receivable, Individually Evaluated for Impairment | 491,000 | 430,000 | 429,000 | |
Financing Receivable, Allowance for Credit Losses | 2,427,000 | 2,107,000 | 2,367,000 | 2,194,000 |
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Non-Accrual Loans | 0 | 0 | ||
Financing Receivable, Individually Evaluated for Impairment | 0 | 7,000 | ||
Financing Receivable, Allowance for Credit Losses | 230,000 | 175,000 | 233,000 | 181,000 |
HPFC Portfolio Segment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Non-Accrual Loans | 655,000 | 1,043,000 | ||
Financing Receivable, Individually Evaluated for Impairment | 0 | 98,000 | ||
Financing Receivable, Allowance for Credit Losses | 424,000 | 627,000 | 451,000 | $ 672,000 |
Fixed Rate Residential Mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Proceeds from the sale of mortgage loans | 45,200,000 | 43,000,000 | ||
Gain on sale of mortgage loans | 1,200,000 | 1,300,000 | ||
Loans held for sale, at fair value | 9,500,000 | 8,100,000 | ||
Nonoperating Income (Expense) | Fixed Rate Residential Mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gain on sale of mortgage loans | 9,000 | 254,000 | ||
Unrealized gain (loss) on loans held for sale | $ 47,000 | 37,000 | ||
Minimum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Individually Evaluated for Impairment | 250,000 | |||
Number of Months | 18 | |||
Minimum | HPFC Portfolio Segment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Term to maturity | 7 years | |||
Maximum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Months | 24 | |||
Maximum | HPFC Portfolio Segment | ||||
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) | 11.00% | |||
Non-Residential Building Operators Industry Sector | Loan Concentration Risk | Commercial Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Concentration risk (percentage) | 26.00% | |||
Substandard (Grade 8) | Minimum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing Receivable, Individually Evaluated for Impairment | $ 500,000 | |||
Forward Contracts [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Derivative, Fair Value, Net | 123,000 | $ 142,000 | ||
Unrealized Gain (Loss) on Derivatives | $ 19,000 | $ 118,000 |
LOANS AND ALLOWANCE FOR LOAN 41
LOANS AND ALLOWANCE FOR LOAN LOSSES (Activity in Allowance for Loan Losses by Portfolio Segment) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Reserve for unfunded commitments | $ 23,000 | $ 9,000 | $ 20,000 |
Activity in ALL: | |||
Beginning balance | 24,171,000 | 23,116,000 | 23,116,000 |
Loans charged off | (803,000) | (159,000) | (2,468,000) |
Recoveries | 122,000 | 183,000 | 497,000 |
Provision (credit)(1) | (500,000) | 581,000 | 3,026,000 |
Ending balance | 22,990,000 | 23,721,000 | 24,171,000 |
Ending Balance: Individually evaluated for impairment | 1,033,000 | 1,734,000 | 2,009,000 |
Ending Balance: Collectively evaluated for impairment | 21,957,000 | 21,987,000 | 22,162,000 |
Ending Balance: Individually evaluated for impairment | 11,225,000 | 20,128,000 | 13,590,000 |
Ending Balance: Collectively evaluated for impairment | 2,777,923,000 | 2,625,011,000 | 2,768,849,000 |
Total Loans Outstanding | 2,789,148,000 | 2,645,139,000 | 2,782,439,000 |
Residential Real Estate | |||
Activity in ALL: | |||
Beginning balance | 5,086,000 | 4,160,000 | 4,160,000 |
Loans charged off | (31,000) | (5,000) | (482,000) |
Recoveries | 0 | 0 | 30,000 |
Provision (credit)(1) | 442,000 | 116,000 | 1,378,000 |
Ending balance | 5,497,000 | 4,271,000 | 5,086,000 |
Ending Balance: Individually evaluated for impairment | 553,000 | 485,000 | 568,000 |
Ending Balance: Collectively evaluated for impairment | 4,944,000 | 3,786,000 | 4,518,000 |
Ending Balance: Individually evaluated for impairment | 5,059,000 | 4,408,000 | 5,171,000 |
Ending Balance: Collectively evaluated for impairment | 855,474,000 | 815,231,000 | 853,198,000 |
Total Loans Outstanding | 860,533,000 | 819,639,000 | 858,369,000 |
Commercial Real Estate | |||
Activity in ALL: | |||
Beginning balance | 11,863,000 | 12,154,000 | 12,154,000 |
Loans charged off | (426,000) | (3,000) | (124,000) |
Recoveries | 13,000 | 103,000 | 141,000 |
Provision (credit)(1) | (1,164,000) | 472,000 | (308,000) |
Ending balance | 10,286,000 | 12,726,000 | 11,863,000 |
Ending Balance: Individually evaluated for impairment | 368,000 | 1,100,000 | 1,441,000 |
Ending Balance: Collectively evaluated for impairment | 9,918,000 | 11,626,000 | 10,422,000 |
Ending Balance: Individually evaluated for impairment | 3,961,000 | 13,191,000 | 6,199,000 |
Ending Balance: Collectively evaluated for impairment | 1,165,572,000 | 1,083,284,000 | 1,157,824,000 |
Total Loans Outstanding | 1,169,533,000 | 1,096,475,000 | 1,164,023,000 |
Commercial | |||
Activity in ALL: | |||
Beginning balance | 4,171,000 | 3,755,000 | 3,755,000 |
Loans charged off | (171,000) | (136,000) | (1,014,000) |
Recoveries | 63,000 | 77,000 | 301,000 |
Provision (credit)(1) | 63,000 | 119,000 | 1,129,000 |
Ending balance | 4,126,000 | 3,815,000 | 4,171,000 |
Ending Balance: Individually evaluated for impairment | 0 | 0 | |
Ending Balance: Collectively evaluated for impairment | 4,126,000 | 3,815,000 | 4,171,000 |
Ending Balance: Individually evaluated for impairment | 1,714,000 | 1,994,000 | 1,791,000 |
Ending Balance: Collectively evaluated for impairment | 376,301,000 | 331,613,000 | 371,609,000 |
Total Loans Outstanding | 378,015,000 | 333,607,000 | 373,400,000 |
Home Equity | |||
Activity in ALL: | |||
Beginning balance | 2,367,000 | 2,194,000 | 2,194,000 |
Loans charged off | (149,000) | (1,000) | (434,000) |
Recoveries | 43,000 | 1,000 | 2,000 |
Provision (credit)(1) | 166,000 | (87,000) | 605,000 |
Ending balance | 2,427,000 | 2,107,000 | 2,367,000 |
Ending Balance: Individually evaluated for impairment | 112,000 | 83,000 | |
Ending Balance: Collectively evaluated for impairment | 2,315,000 | 2,024,000 | 2,367,000 |
Ending Balance: Individually evaluated for impairment | 491,000 | 430,000 | 429,000 |
Ending Balance: Collectively evaluated for impairment | 320,151,000 | 322,396,000 | 322,949,000 |
Total Loans Outstanding | 320,642,000 | 322,826,000 | 323,378,000 |
Consumer | |||
Activity in ALL: | |||
Beginning balance | 233,000 | 181,000 | 181,000 |
Loans charged off | (26,000) | (14,000) | (124,000) |
Recoveries | 3,000 | 2,000 | 17,000 |
Provision (credit)(1) | 20,000 | 6,000 | 159,000 |
Ending balance | 230,000 | 175,000 | 233,000 |
Ending Balance: Individually evaluated for impairment | 0 | 0 | |
Ending Balance: Collectively evaluated for impairment | 230,000 | 175,000 | 233,000 |
Ending Balance: Individually evaluated for impairment | 0 | 7,000 | |
Ending Balance: Collectively evaluated for impairment | 18,011,000 | 16,662,000 | 18,149,000 |
Total Loans Outstanding | 18,011,000 | 16,669,000 | 18,149,000 |
HPFC Portfolio Segment | |||
Activity in ALL: | |||
Beginning balance | 451,000 | 672,000 | 672,000 |
Loans charged off | 0 | 0 | (290,000) |
Recoveries | 0 | 0 | 6,000 |
Provision (credit)(1) | (27,000) | (45,000) | 63,000 |
Ending balance | 424,000 | 627,000 | 451,000 |
Ending Balance: Individually evaluated for impairment | 0 | 66,000 | |
Ending Balance: Collectively evaluated for impairment | 424,000 | 561,000 | 451,000 |
Ending Balance: Individually evaluated for impairment | 0 | 98,000 | |
Ending Balance: Collectively evaluated for impairment | 42,414,000 | 55,825,000 | 45,120,000 |
Total Loans Outstanding | $ 42,414,000 | $ 55,923,000 | $ 45,120,000 |
LOANS AND ALLOWANCE FOR LOAN 42
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Provision for Credit Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract] | |||
Provision (credit)(1) | $ (500) | $ 581 | $ 3,026 |
Change in reserve for unfunded commitments | 3 | (2) | 9 |
(Credit) provision for credit losses | $ (497) | $ 579 | $ 3,035 |
LOANS AND ALLOWANCE FOR LOAN 43
LOANS AND ALLOWANCE FOR LOAN LOSSES (Credit Risk Exposure Indicators by Portfolio Segment) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $ 2,789,148 | $ 2,782,439 | $ 2,645,139 |
Pass (Grades 1-6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,396,914 | 2,374,582 | |
Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 337,189 | 339,876 | |
Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 21,783 | 22,784 | |
Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 31,798 | 43,546 | |
Non-performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,464 | 1,651 | |
Residential Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 860,533 | 858,369 | 819,639 |
Residential Real Estate | Pass (Grades 1-6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 847,822 | 846,394 | |
Residential Real Estate | Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 662 | 922 | |
Residential Real Estate | Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 12,049 | 11,053 | |
Commercial Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,169,533 | 1,164,023 | 1,096,475 |
Commercial Real Estate | Pass (Grades 1-6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,146,947 | 1,130,235 | |
Commercial Real Estate | Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 8,510 | 9,154 | |
Commercial Real Estate | Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 14,076 | 24,634 | |
Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 378,015 | 373,400 | 333,607 |
Commercial | Pass (Grades 1-6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 361,377 | 354,904 | |
Commercial | Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 12,437 | 12,517 | |
Commercial | Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 4,201 | 5,979 | |
Home Equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 320,642 | 323,378 | 322,826 |
Home Equity | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 319,178 | 321,727 | |
Home Equity | Non-performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,464 | 1,651 | |
Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 18,011 | 18,149 | 16,669 |
Consumer | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 18,011 | 18,149 | |
HPFC Portfolio Segment | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 42,414 | 45,120 | $ 55,923 |
HPFC Portfolio Segment | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 40,768 | 43,049 | |
HPFC Portfolio Segment | Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 174 | 191 | |
HPFC Portfolio Segment | Non-performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $ 1,472 | $ 1,880 |
LOANS AND ALLOWANCE FOR LOAN 44
LOANS AND ALLOWANCE FOR LOAN LOSSES (Loan Aging Analysis by Portfolio Segment) (Details) | 3 Months Ended | ||
Mar. 31, 2018USD ($)loan | Mar. 31, 2017USD ($)loan | Dec. 31, 2017USD ($) | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Number of TDRs | loan | 0 | 1 | |
Total Past Due | $ 19,248,000 | $ 22,945,000 | |
Current | 2,769,900,000 | 2,759,494,000 | |
Total Loans Outstanding | 2,789,148,000 | $ 2,645,139,000 | 2,782,439,000 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 14,898,000 | 15,314,000 | |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 0 | 151,000 | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 0 | 151,000 | |
Allowance Related to Troubled Debt Restructurings assigned during period | 0 | 15,000 | |
Residential Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 8,264,000 | 9,477,000 | |
Current | 852,269,000 | 848,892,000 | |
Total Loans Outstanding | 860,533,000 | 819,639,000 | 858,369,000 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 6,185,000 | 4,979,000 | |
Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 5,694,000 | 6,700,000 | |
Current | 1,163,839,000 | 1,157,323,000 | |
Total Loans Outstanding | 1,169,533,000 | 1,096,475,000 | 1,164,023,000 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 4,603,000 | 5,642,000 | |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,779,000 | 2,223,000 | |
Current | 376,236,000 | 371,177,000 | |
Total Loans Outstanding | 378,015,000 | 333,607,000 | 373,400,000 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 1,991,000 | 2,000,000 | |
Home Equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,305,000 | 2,548,000 | |
Current | 318,337,000 | 320,830,000 | |
Total Loans Outstanding | 320,642,000 | 322,826,000 | 323,378,000 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 1,464,000 | 1,650,000 | |
Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 23,000 | 67,000 | |
Current | 17,988,000 | 18,082,000 | |
Total Loans Outstanding | 18,011,000 | 16,669,000 | 18,149,000 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 0 | 0 | |
HPFC Portfolio Segment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,183,000 | 1,930,000 | |
Current | 41,231,000 | 43,190,000 | |
Total Loans Outstanding | 42,414,000 | $ 55,923,000 | 45,120,000 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 655,000 | 1,043,000 | |
30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 5,812,000 | 6,291,000 | |
30-59 Days Past Due | Residential Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,969,000 | 3,871,000 | |
30-59 Days Past Due | Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,455,000 | 849,000 | |
30-59 Days Past Due | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 144,000 | 329,000 | |
30-59 Days Past Due | Home Equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,121,000 | 1,046,000 | |
30-59 Days Past Due | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 14,000 | 57,000 | |
30-59 Days Past Due | HPFC Portfolio Segment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 109,000 | 139,000 | |
60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,237,000 | 3,822,000 | |
60-89 Days Past Due | Residential Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 533,000 | 1,585,000 | |
60-89 Days Past Due | Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 72,000 | 323,000 | |
60-89 Days Past Due | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 103,000 | 359,000 | |
60-89 Days Past Due | Home Equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 101,000 | 173,000 | |
60-89 Days Past Due | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 9,000 | 10,000 | |
60-89 Days Past Due | HPFC Portfolio Segment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 419,000 | 1,372,000 | |
Greater than 90 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 12,199,000 | 12,832,000 | |
Greater than 90 Days | Residential Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4,762,000 | 4,021,000 | |
Greater than 90 Days | Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4,167,000 | 5,528,000 | |
Greater than 90 Days | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,532,000 | 1,535,000 | |
Greater than 90 Days | Home Equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,083,000 | 1,329,000 | |
Greater than 90 Days | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Greater than 90 Days | HPFC Portfolio Segment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 655,000 | $ 419,000 |
LOANS AND ALLOWANCE FOR LOAN 45
LOANS AND ALLOWANCE FOR LOAN LOSSES (Troubled Debt Restructuring Loans) (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018USD ($)loan | Mar. 31, 2017loan | Dec. 31, 2017USD ($)loan | |
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 35 | 36 | |
Recorded Investment | $ 5,580 | $ 6,232 | |
Specific Reserve | $ 430 | $ 468 | |
Number of Contracts | loan | 0 | 1 | |
Residential Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 24 | 24 | |
Recorded Investment | $ 3,581 | $ 3,604 | |
Specific Reserve | $ 410 | $ 452 | |
Commercial Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 2 | 3 | |
Recorded Investment | $ 354 | $ 976 | |
Specific Reserve | $ 20 | $ 16 | |
Commercial | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 7 | 7 | |
Recorded Investment | $ 1,339 | $ 1,345 | |
Specific Reserve | $ 0 | $ 0 | |
Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 2 | 2 | |
Recorded Investment | $ 306 | $ 307 | |
Specific Reserve | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN 46
LOANS AND ALLOWANCE FOR LOAN LOSSES, Troubled Debt Restructuring by Portfolio Segment (Details) | 3 Months Ended | |
Mar. 31, 2018USD ($)loan | Mar. 31, 2017USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of TDRs | loan | 0 | 1 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 0 | $ 151,000 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 0 | 151,000 |
Allowance Related to Troubled Debt Restructurings assigned during period | $ 0 | $ 15,000 |
Residential Real Estate [Member] | Extended Maturity [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of TDRs | loan | 0 | 1 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 0 | $ 151,000 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 0 | 151,000 |
Allowance Related to Troubled Debt Restructurings assigned during period | $ 0 | $ 15,000 |
LOANS AND ALLOWANCE FOR LOAN 47
LOANS AND ALLOWANCE FOR LOAN LOSSES (Summary of Impaired Loan Balances and Associated Allowance by Portfolio Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment - with an allowance recorded | $ 7,282 | $ 15,235 | $ 9,280 |
Unpaid Principal Balance - with an allowance recorded | 7,282 | 15,235 | 9,280 |
Related Allowance | 1,033 | 1,734 | 2,009 |
Average Recorded Investment - with an allowance recorded | 8,069 | 15,075 | 12,257 |
Interest Income Recognized - with an allowance recorded | 31 | 26 | 153 |
Recorded Investment - without allowance recorded | 3,943 | 4,893 | 4,310 |
Unpaid Principal Balance - without allowance recorded | 5,859 | 6,893 | 6,216 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | |
Average Recorded Investment - without allowance recorded | 4,123 | 5,166 | 4,709 |
Interest Income Recognized - without allowance recorded | 14 | 15 | 62 |
Impaired Financing Receivable, Recorded Investment | 11,225 | 20,128 | 13,590 |
Impaired financing receivable, unpaid principal balance | 13,141 | 22,128 | 15,496 |
Impaired Financing Receivable, Average Recorded Investment | 12,192 | 20,241 | 16,966 |
Impaired Financing Receivable, Interest Income, Accrual Method | 45 | 41 | 215 |
Residential Real Estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment - with an allowance recorded | 3,544 | 3,048 | 3,858 |
Unpaid Principal Balance - with an allowance recorded | 3,544 | 3,048 | 3,858 |
Related Allowance | 553 | 485 | 568 |
Average Recorded Investment - with an allowance recorded | 3,745 | 3,025 | 3,177 |
Interest Income Recognized - with an allowance recorded | 30 | 26 | 131 |
Recorded Investment - without allowance recorded | 1,515 | 1,360 | 1,313 |
Unpaid Principal Balance - without allowance recorded | 1,791 | 1,740 | 1,673 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | |
Average Recorded Investment - without allowance recorded | 1,350 | 1,292 | 1,345 |
Interest Income Recognized - without allowance recorded | 7 | 2 | 15 |
Commercial Real Estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment - with an allowance recorded | 3,591 | 11,791 | 5,422 |
Unpaid Principal Balance - with an allowance recorded | 3,591 | 11,791 | 5,422 |
Related Allowance | 368 | 1,100 | 1,441 |
Average Recorded Investment - with an allowance recorded | 4,275 | 11,654 | 8,900 |
Interest Income Recognized - with an allowance recorded | 1 | 22 | |
Recorded Investment - without allowance recorded | 370 | 1,400 | 777 |
Unpaid Principal Balance - without allowance recorded | 677 | 1,707 | 1,084 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | |
Average Recorded Investment - without allowance recorded | 637 | 1,704 | 1,132 |
Interest Income Recognized - without allowance recorded | 3 | 10 | 29 |
Commercial | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment - with an allowance recorded | 0 | 1 | 0 |
Unpaid Principal Balance - with an allowance recorded | 0 | 1 | 0 |
Related Allowance | 0 | 0 | 0 |
Average Recorded Investment - with an allowance recorded | 31 | ||
Recorded Investment - without allowance recorded | 1,714 | 1,993 | 1,791 |
Unpaid Principal Balance - without allowance recorded | 2,923 | 3,167 | 2,964 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | |
Average Recorded Investment - without allowance recorded | 1,740 | 2,024 | 1,920 |
Interest Income Recognized - without allowance recorded | 2 | 3 | 10 |
Home Equity | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment - with an allowance recorded | 147 | 297 | 0 |
Unpaid Principal Balance - with an allowance recorded | 147 | 297 | 0 |
Related Allowance | 112 | 83 | 0 |
Average Recorded Investment - with an allowance recorded | 49 | 298 | 125 |
Recorded Investment - without allowance recorded | 344 | 133 | 429 |
Unpaid Principal Balance - without allowance recorded | 468 | 269 | 495 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | |
Average Recorded Investment - without allowance recorded | 396 | 139 | 310 |
Interest Income Recognized - without allowance recorded | 2 | 8 | |
Consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment - with an allowance recorded | 0 | 0 | 0 |
Unpaid Principal Balance - with an allowance recorded | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 |
Average Recorded Investment - with an allowance recorded | 0 | ||
Recorded Investment - without allowance recorded | 0 | 7 | 0 |
Unpaid Principal Balance - without allowance recorded | 0 | 10 | 0 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | |
Average Recorded Investment - without allowance recorded | 7 | 2 | |
HPFC Portfolio Segment | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment - with an allowance recorded | 0 | 98 | 0 |
Unpaid Principal Balance - with an allowance recorded | 0 | 98 | 0 |
Related Allowance | 0 | 66 | 0 |
Average Recorded Investment - with an allowance recorded | 98 | 24 | |
Recorded Investment - without allowance recorded | 0 | 0 | 0 |
Unpaid Principal Balance - without allowance recorded | 0 | 0 | 0 |
Impaired Financing Receivable With No Related Allowance Related Allowance | $ 0 | $ 0 | |
Average Recorded Investment - without allowance recorded | $ 0 |
LOANS AND ALLOWANCE FOR LOAN L
LOANS AND ALLOWANCE FOR LOAN LOSSES (Unamortized fair value mark and costs) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Net Unamortized fair Value Mark (Discount) on Loans | $ 5,703 | $ 6,207 |
Loans and Leases Receivable, Deferred Income | (958) | (963) |
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | $ 4,745 | $ 5,244 |
REGULATORY CAPITAL REQUIREMEN49
REGULATORY CAPITAL REQUIREMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Oct. 08, 2015 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Subordinated debentures | $ 58,950 | $ 58,911 | $ 15,000 |
Capital | $ 403,941 | $ 396,451 | |
Capital to Risk Weighted Assets | 14.32% | 14.14% | |
Capital Required for Capital Adequacy to Risk Weighted Assets | 9.875% | 9.25% | |
Tier One Risk Based Capital | $ 365,930 | $ 357,261 | |
Tier One Risk Based Capital to Risk Weighted Assets | 12.98% | 12.74% | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 7.875% | 7.25% | |
Common equity tier I capital | $ 322,930 | $ 316,677 | |
Common Equity Tier I Risk Based Capital Ratio | 11.45% | 11.30% | |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.375% | 5.75% | |
Tier One Leverage Capital | $ 365,930 | $ 357,261 | |
Excess Tier One Leverage Capital to Average Assets | 9.23% | 9.07% | |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% | |
Subsidiaries | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Capital | $ 375,434 | $ 369,540 | |
Capital to Risk Weighted Assets | 13.31% | 13.18% | |
Capital Required for Capital Adequacy to Risk Weighted Assets | 9.875% | 9.25% | |
Tier One Risk Based Capital | $ 352,422 | $ 345,350 | |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% | |
Tier One Risk Based Capital to Risk Weighted Assets | 12.49% | 12.32% | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 7.875% | 7.25% | |
Common equity tier I capital | $ 352,422 | $ 345,350 | |
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 | 12.49% | 12.32% | |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.375% | 5.75% | |
Tier One Leverage Capital | $ 352,422 | $ 345,350 | |
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 | 8.92% | 8.80% | |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% | |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
REGULATORY CAPITAL REQUIREMEN50
REGULATORY CAPITAL REQUIREMENTS Regulatory Capital Requirements (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Oct. 08, 2015 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Capital Required for Capital Adequacy to Risk Weighted Assets | 9.875% | 9.25% | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 7.875% | 7.25% | |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.375% | 5.75% | |
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 | $ 58,950 | 58,911 | $ 15,000 |
Minimum | |||
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 | 1.875% | ||
Tier II Capital [Domain] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Subordinated Debt | $ 15,000 | $ 15,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 3,079 | $ 4,344 |
Income before income tax expense | $ 15,899 | $ 14,420 |
Effective tax rate(1) | 19.40% | 30.10% |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Supplemental Employee Retirement Plan [Member] | ||
Net periodic pension cost | ||
Service cost | $ 112 | $ 84 |
Interest cost | 122 | 112 |
Recognized net actuarial loss | 140 | 62 |
Net period benefit cost | 374 | 258 |
Other Postretirement Benefit Plan | ||
Net periodic pension cost | ||
Service cost | 12 | 13 |
Interest cost | 33 | 36 |
Recognized net actuarial loss | 13 | 10 |
Recognized prior service cost | (6) | (6) |
Net period benefit cost | $ 52 | $ 53 |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Repurchase Agreements | $ 256,274 | $ 244,646 |
Total short-term borrowings | 552,624 | 541,796 |
Long-term Federal Home Loan Bank Advances | 10,000 | 10,000 |
Total long-term borrowings | 10,773 | 10,791 |
Short-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase Agreements | 256,274 | 244,646 |
FHLBB advances less than 90 days | 135,000 | 250,000 |
FHLBB and correspondent bank overnight borrowings | 161,350 | 47,150 |
Long-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Capital lease obligation | $ 773 | $ 791 |
REPURCHASE AGREEMENTS (Details)
REPURCHASE AGREEMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Certificates of Deposit, at Carrying Value | $ 920 | $ 920,000 |
Repurchase Agreements | 256,274 | 244,646 |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 256,274 | 244,646 |
Up to 30 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 0 | 0 |
30 - 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 0 | 0 |
Greater than 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 0 | 0 |
Retail Customers | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 256,274 | 244,646 |
Retail Customers | Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 256,274 | 244,646 |
Retail Customers | Up to 30 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 0 | 0 |
Retail Customers | 30 - 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 0 | 0 |
Retail Customers | Greater than 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 0 | 0 |
Retail Customers | Obligations of states and political subdivisions | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 1,125 | 630 |
Retail Customers | Obligations of states and political subdivisions | Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 1,125 | 630 |
Retail Customers | Obligations of states and political subdivisions | Up to 30 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 0 | 0 |
Retail Customers | Obligations of states and political subdivisions | 30 - 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 0 | 0 |
Retail Customers | Obligations of states and political subdivisions | Greater than 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 0 | 0 |
Retail Customers | Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 90,903 | 98,460 |
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] | ||
Repurchase Agreements | 90,903 | 98,460 |
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] | ||
Repurchase Agreements | 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] | ||
Repurchase Agreements | 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] | ||
Repurchase Agreements | 0 | 0 |
Retail Customers | Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 164,246 | 145,556 |
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] | ||
Repurchase Agreements | 164,246 | 145,556 |
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] | ||
Repurchase Agreements | 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] | ||
Repurchase Agreements | 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] | ||
Repurchase Agreements | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT AND DI55
FAIR VALUE MEASUREMENT AND DISCLOSURE (Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financial assets: | ||
Available-for-sale Securities | $ 796,687 | $ 789,899 |
Obligations of states and political subdivisions | ||
Financial assets: | ||
Available-for-sale Securities | 5,827 | 7,335 |
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 502,996 | 503,302 |
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 282,279 | 272,799 |
Equity Securities [Member] | ||
Financial assets: | ||
Available-for-sale Securities | 806 | |
Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Loans held for sale | 9,548 | 8,103 |
Customer loan swaps | 10,707 | |
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 7,571 | |
Customer loan swaps | 22 | |
Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ||
Financial assets: | ||
Available-for-sale Securities | 5,827 | 7,335 |
Fair Value, Measurements, Recurring | Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 502,996 | 503,302 |
Fair Value, Measurements, Recurring | Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 282,279 | 272,799 |
Fair Value, Measurements, Recurring | Corporate Bond Securities [Member] | ||
Financial assets: | ||
Available-for-sale Securities | 5,585 | 5,657 |
Fair Value, Measurements, Recurring | Equity Securities [Member] | ||
Financial assets: | ||
Available-for-sale Securities | 761 | 806 |
Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Loans held for sale | 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) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Loans held for sale | 9,548 | 8,103 |
Customer loan swaps | 10,707 | |
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 7,571 | |
Customer loan swaps | 22 | |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ||
Financial assets: | ||
Available-for-sale Securities | 5,827 | 7,335 |
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 | 502,996 | 503,302 |
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 | 282,279 | 272,799 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Corporate Bond Securities [Member] | ||
Financial assets: | ||
Available-for-sale Securities | 5,585 | 5,657 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Equity Securities [Member] | ||
Financial assets: | ||
Available-for-sale Securities | 761 | 806 |
Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Loans held for sale | 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 Lock Commitments [Member] | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Customer loan swaps | 308 | 307 |
Financial liabilities: | ||
Customer loan swaps | 35 | 22 |
Interest Rate Lock Commitments [Member] | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Customer loan swaps | 308 | 307 |
Financial liabilities: | ||
Customer loan swaps | 35 | 22 |
Interest Rate Lock Commitments [Member] | Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Customer loan swaps | 0 | 0 |
Forward Contracts [Member] | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Customer loan swaps | 145 | 158 |
Financial liabilities: | ||
Customer loan swaps | 16 | |
Forward Contracts [Member] | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Customer loan swaps | 145 | 158 |
Financial liabilities: | ||
Customer loan swaps | 16 | |
Interest rate swaps | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Customer loan swaps | 5,036 | |
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 5,877 | |
Customer loan swaps | 5,036 | |
Interest rate swaps | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Customer loan swaps | 5,036 | |
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 5,877 | |
Customer loan swaps | 5,036 | |
Forward-Starting Interest Rate Swap | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 85 | 21 |
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) | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 85 | $ 21 |
Forward-Starting Interest Rate Swap | Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 0 | |
Customer Loan Swaps | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Customer loan swaps | 10,707 | |
Customer Loan Swaps | Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Customer loan swaps | 0 | |
Customer Loan Swaps | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Customer loan swaps | 10,707 | |
Customer Loan Swaps | Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Customer loan swaps | $ 0 |
FAIR VALUE MEASUREMENT AND DI56
FAIR VALUE MEASUREMENT AND DISCLOSURE (Summary of Assets Measured at Fair Value on Non Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Collateral-dependent impaired loans | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Fair Value | $ 3,600 | $ 3,696 |
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 | 3,600 | 3,696 |
Other real estate owned | Company Determined Fair Value (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Fair Value | 130 | 130 |
Other real estate owned | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Fair Value | 130 | 130 |
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 | $ 130 | $ 130 |
FAIR VALUE MEASUREMENT AND DI57
FAIR VALUE MEASUREMENT AND DISCLOSURE (Schedule of Valuation Methodology and Unobservable Inputs) (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Impaired Loans Partially Charged Off | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 18 | $ 86 |
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 | 10.00% | 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% | 50.00% |
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% | 18.00% |
Estimated selling cost | 10.00% | 6.00% |
Impaired Loans Specifically Reserved | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 3,582 | $ 3,610 |
Impaired Loans Specifically Reserved | Market Approach Valuation Technique | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Management adjustment of appraisal | 0.00% | 0.00% |
Estimated selling cost | 0.00% | 10.00% |
Impaired Loans Specifically Reserved | Market Approach Valuation Technique | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Management adjustment of appraisal | 0.00% | 0.00% |
Estimated selling cost | 0.00% | 10.00% |
Impaired Loans Specifically Reserved | Market Approach Valuation Technique | Weighted Average | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Management adjustment of appraisal | 0.00% | 0.00% |
Estimated selling cost | 0.00% | 10.00% |
Other real estate owned | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $ 130 | $ 130 |
Other real estate owned | Market Approach Valuation Technique | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Management adjustment of appraisal | 20.00% | 20.00% |
Estimated selling cost | 10.00% | 10.00% |
Other real estate owned | Market Approach Valuation Technique | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Management adjustment of appraisal | 20.00% | 20.00% |
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 | 20.00% | 20.00% |
Estimated selling cost | 10.00% | 10.00% |
FAIR VALUE MEASUREMENT AND DI58
FAIR VALUE MEASUREMENT AND DISCLOSURE (Schedule of Carrying Amounts and Estimated Fair Value for Financial Instrument Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financial assets: | ||
Available-for-sale Securities | $ 796,687 | $ 789,899 |
Held-to-maturity securities, at amortized cost | 93,192 | 94,073 |
Held-to-maturity Securities, Fair Value | 91,874 | 94,913 |
Mortgage servicing rights | 1,840 | 1,766 |
Financial liabilities: | ||
Time deposits | 532,244 | 512,483 |
Short-term Debt, Fair Value | 552,289 | 541,605 |
Long-term Debt, Fair Value | 10,658 | 10,777 |
Subordinated debentures | 45,588 | 44,333 |
Residential Real Estate | ||
Financial assets: | ||
Loans receivable, net of allowance | 842,132 | 853,056 |
Commercial Real Estate | ||
Financial assets: | ||
Loans receivable, net of allowance | 1,119,406 | 1,115,618 |
Commercial | ||
Financial assets: | ||
Loans receivable, net of allowance | 404,925 | 401,902 |
Home Equity | ||
Financial assets: | ||
Loans receivable, net of allowance | 311,142 | 318,230 |
Consumer | ||
Financial assets: | ||
Loans receivable, net of allowance | 16,880 | 17,335 |
Readily Available Market Prices (Level 1) | ||
Financial assets: | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Financial liabilities: | ||
Time deposits | 0 | 0 |
Short-term Debt, Fair Value | 0 | 0 |
Long-term Debt, Fair Value | 0 | 0 |
Subordinated debentures | 0 | 0 |
Readily Available Market Prices (Level 1) | Residential Real Estate | ||
Financial assets: | ||
Loans receivable, net of allowance | 0 | 0 |
Readily Available Market Prices (Level 1) | Commercial Real Estate | ||
Financial assets: | ||
Loans receivable, net of allowance | 0 | 0 |
Readily Available Market Prices (Level 1) | Commercial | ||
Financial assets: | ||
Loans receivable, net of allowance | 0 | 0 |
Readily Available Market Prices (Level 1) | Home Equity | ||
Financial assets: | ||
Loans receivable, net of allowance | 0 | 0 |
Readily Available Market Prices (Level 1) | Consumer | ||
Financial assets: | ||
Loans receivable, net of allowance | 0 | 0 |
Observable Market Data (Level 2) | ||
Financial assets: | ||
Held-to-maturity Securities, Fair Value | 91,874 | 94,913 |
Mortgage servicing rights | 0 | 0 |
Financial liabilities: | ||
Time deposits | 532,244 | 512,483 |
Short-term Debt, Fair Value | 552,289 | 541,605 |
Long-term Debt, Fair Value | 10,658 | 10,777 |
Subordinated debentures | 45,588 | 44,333 |
Observable Market Data (Level 2) | Residential Real Estate | ||
Financial assets: | ||
Loans receivable, net of allowance | 0 | 0 |
Observable Market Data (Level 2) | Commercial Real Estate | ||
Financial assets: | ||
Loans receivable, net of allowance | 0 | 0 |
Observable Market Data (Level 2) | Commercial | ||
Financial assets: | ||
Loans receivable, net of allowance | 0 | 0 |
Observable Market Data (Level 2) | Home Equity | ||
Financial assets: | ||
Loans receivable, net of allowance | 0 | 0 |
Observable Market Data (Level 2) | Consumer | ||
Financial assets: | ||
Loans receivable, net of allowance | 0 | 0 |
Company Determined Fair Value (Level 3) | ||
Financial assets: | ||
Held-to-maturity Securities, Fair Value | 0 | 0 |
Mortgage servicing rights | 1,840 | 1,766 |
Financial liabilities: | ||
Time deposits | 0 | 0 |
Short-term Debt, Fair Value | 0 | 0 |
Long-term Debt, Fair Value | 0 | 0 |
Subordinated debentures | 0 | 0 |
Company Determined Fair Value (Level 3) | Residential Real Estate | ||
Financial assets: | ||
Loans receivable, net of allowance | 842,132 | 853,056 |
Company Determined Fair Value (Level 3) | Commercial Real Estate | ||
Financial assets: | ||
Loans receivable, net of allowance | 1,119,406 | 1,115,618 |
Company Determined Fair Value (Level 3) | Commercial | ||
Financial assets: | ||
Loans receivable, net of allowance | 404,925 | 401,902 |
Company Determined Fair Value (Level 3) | Home Equity | ||
Financial assets: | ||
Loans receivable, net of allowance | 311,142 | 318,230 |
Company Determined Fair Value (Level 3) | Consumer | ||
Financial assets: | ||
Loans receivable, net of allowance | 16,880 | 17,335 |
Carrying Amount | ||
Financial assets: | ||
Held-to-maturity securities, at amortized cost | 93,192 | 94,073 |
Mortgage servicing rights | 972 | 1,025 |
Financial liabilities: | ||
Time deposits | 538,957 | 517,032 |
Short-term Debt, Fair Value | 552,624 | 541,796 |
Long-term Debt, Fair Value | 10,773 | 10,791 |
Subordinated debentures | 58,950 | 58,911 |
Carrying Amount | Residential Real Estate | ||
Financial assets: | ||
Loans receivable, net of allowance | 855,036 | 853,283 |
Carrying Amount | Commercial Real Estate | ||
Financial assets: | ||
Loans receivable, net of allowance | 1,159,247 | 1,152,160 |
Carrying Amount | Commercial | ||
Financial assets: | ||
Loans receivable, net of allowance | 415,879 | 413,898 |
Carrying Amount | Home Equity | ||
Financial assets: | ||
Loans receivable, net of allowance | 318,215 | 321,011 |
Carrying Amount | Consumer | ||
Financial assets: | ||
Loans receivable, net of allowance | $ 17,781 | $ 17,916 |
FAIR VALUE MEASUREMENT AND DI59
FAIR VALUE MEASUREMENT AND DISCLOSURE (Narrative) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financing Receivable, Individually Evaluated for Impairment | $ 11,225,000 | $ 13,590,000 | $ 20,128,000 |
Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financing Receivable, Individually Evaluated for Impairment | $ 250,000 | ||
Substandard [Member] | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financing Receivable, Individually Evaluated for Impairment | $ 500,000 |
COMMITMENTS, CONTINGENCIES AN60
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($)derivativeswap | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)derivative | |
Other Commitments [Line Items] | |||
Loss Contingency Accrual | $ 0 | $ 0 | |
Loss on Cash Flow Hedge Ineffectiveness | $ 0 | 0 | |
Derivative, Number of Instruments Held | derivative | 2 | ||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | $ 693,000 | ||
Unrealized Gain (Loss) on Derivatives | (12,000) | $ (12,000) | |
Interest rate swaps | |||
Other Commitments [Line Items] | |||
Derivative Instrument Payment Of Interest Rate Swaps Designated As Cash Flow Hedges | 275,000 | 346,000 | |
Notional amount of derivative | 43,000,000 | 43,000,000 | |
Cash held as collateral | 6,000,000 | ||
Forward-Starting Interest Rate Swap | |||
Other Commitments [Line Items] | |||
Derivative Instrument Payment Of Interest Rate Swaps Designated As Cash Flow Hedges | 9,000 | 109,000 | |
Notional amount of derivative | 25,000,000 | 50,000,000 | |
Cash held as collateral | 10,400,000 | ||
Forward Contracts [Member] | |||
Other Commitments [Line Items] | |||
Notional amount of derivative | 9,502,000 | $ 8,065,000 | |
Unrealized Gain (Loss) on Derivatives | $ 19,000 | $ 118,000 | |
Federal home loan bank 30-day | Interest rate swaps | |||
Other Commitments [Line Items] | |||
Derivative, Number of Instruments Held | derivative | 6 | 23 | |
Notional amount of derivative | $ 19,763,000 | $ 124,784,000 | |
Commercial and Industrial Sector [Member] | Interest rate swaps | |||
Other Commitments [Line Items] | |||
Derivative, Number of Instruments Held | derivative | 69 | 65 | |
Notional amount of derivative | $ 354,158,000 | $ 351,668,000 | |
Contract One [Member] | Interest rate swaps | |||
Other Commitments [Line Items] | |||
Notional amount of derivative | $ 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 |
COMMITMENTS, CONTINGENCIES AN61
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Summary of Contractual and Notional Amounts of Financial Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Customer Loan Swaps | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | $ 708,316 | $ 703,336 |
Forward-Starting Interest Rate Swap | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | 25,000 | 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 | 24,753 | 21,746 |
Forward Contracts [Member] | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | 9,502 | 8,065 |
Other Commitments | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | 1,151 | 523 |
Letters of Credit | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | 3,426 | 2,848 |
Home Equity | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | 501,127 | 477,401 |
Commercial and commercial real estate | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | 31,667 | 49,482 |
Residential | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | $ 36,352 | $ 41,368 |
COMMITMENTS, CONTINGENCIES AN62
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Schedule of Swapped Variable Cost for Fixed Cost and Terms of Interest Rate Swap Agreements) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | ||
Derivative [Line Items] | |||
Derivative, fair value | $ 123,000 | $ 142,000 | |
Loss on Cash Flow Hedge Ineffectiveness | 0 | 0 | |
Interest rate swaps | |||
Derivative [Line Items] | |||
Notional Amount | 43,000,000 | 43,000,000 | |
Derivative, fair value | [1] | 5,877,000 | 7,571,000 |
Interest rate swaps | Contract, One | |||
Derivative [Line Items] | |||
Notional Amount | $ 10,000,000 | ||
Trade Date | Mar. 18, 2009 | ||
Maturity Date | Jun. 30, 2021 | ||
Variable Index Received | 3 months | ||
Fixed Rate Paid | 5.09% | ||
Derivative, fair value | [1] | $ 343,000 | 527,000 |
Interest rate swaps | Contract, Two | |||
Derivative [Line Items] | |||
Notional Amount | $ 10,000,000 | ||
Trade Date | Jul. 8, 2009 | ||
Maturity Date | Jun. 30, 2029 | ||
Variable Index Received | 3 months | ||
Fixed Rate Paid | 5.84% | ||
Derivative, fair value | [1] | $ 1,695,000 | 2,133,000 |
Interest rate swaps | Contract, Three | |||
Derivative [Line Items] | |||
Notional Amount | $ 10,000,000 | ||
Trade Date | May 6, 2010 | ||
Maturity Date | Jun. 30, 2030 | ||
Variable Index Received | 3 months | ||
Fixed Rate Paid | 5.71% | ||
Derivative, fair value | [1] | $ 1,671,000 | 2,129,000 |
Interest rate swaps | Contract, Four | |||
Derivative [Line Items] | |||
Notional Amount | $ 5,000,000 | ||
Trade Date | Mar. 14, 2011 | ||
Maturity Date | Mar. 30, 2031 | ||
Variable Index Received | 3 months | ||
Fixed Rate Paid | 4.35% | ||
Derivative, fair value | [1] | $ 899,000 | 1,137,000 |
Interest rate swaps | Contract, Five | |||
Derivative [Line Items] | |||
Notional Amount | $ 8,000,000 | ||
Trade Date | May 4, 2011 | ||
Maturity Date | Jul. 7, 2031 | ||
Variable Index Received | 3 months | ||
Fixed Rate Paid | 4.14% | ||
Derivative, fair value | [1] | $ 1,269,000 | 1,645,000 |
Forward-Starting Interest Rate Swap | |||
Derivative [Line Items] | |||
Notional Amount | 25,000,000 | 50,000,000 | |
Derivative, fair value | [2] | 85,000 | 21,000 |
Forward-Starting Interest Rate Swap | Contract, One | |||
Derivative [Line Items] | |||
Notional Amount | $ 25,000,000 | ||
Trade Date | Feb. 25, 2015 | ||
Maturity Date | Feb. 25, 2018 | ||
Variable Index Received | 1 month | ||
Fixed Rate Paid | 1.54% | ||
Derivative, fair value | [2] | $ 0 | 20,000 |
Forward-Starting Interest Rate Swap | Contract, Two | |||
Derivative [Line Items] | |||
Notional Amount | $ 25,000,000 | ||
Trade Date | Feb. 25, 2015 | ||
Maturity Date | Feb. 25, 2019 | ||
Variable Index Received | 1 month | ||
Fixed Rate Paid | 1.74% | ||
Derivative, fair value | [2] | $ 85,000 | $ 1,000 |
[1] | Presented within accrued interest and other liabilities on the consolidated statements of condition. | ||
[2] | Presented within accrued interest and other liabilities on the consolidated statements of condition. |
COMMITMENTS, CONTINGENCIES AN63
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Schedule of customer loan swaps) (Details) $ in Thousands | Mar. 31, 2018USD ($)derivative | Dec. 31, 2017USD ($)derivative | |
Derivative [Line Items] | |||
Derivative, Number of Instruments Held | derivative | 2 | ||
Derivative, fair value | $ 123 | $ 142 | |
Interest rate swaps | |||
Derivative [Line Items] | |||
Notional amount of derivative | 43,000 | 43,000 | |
Derivative, fair value | [1] | $ 5,877 | $ 7,571 |
Interest rate swaps | Federal home loan bank 30-day | |||
Derivative [Line Items] | |||
Derivative, Number of Instruments Held | derivative | 6 | 23 | |
Notional amount of derivative | $ 19,763 | $ 124,784 | |
Derivative, fair value | 402 | 1,799 | |
Forward-Starting Interest Rate Swap | |||
Derivative [Line Items] | |||
Notional amount of derivative | 25,000 | 50,000 | |
Derivative, fair value | [2] | $ 85 | $ 21 |
Commercial and Industrial Sector [Member] | Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative, Number of Instruments Held | derivative | 69 | 65 | |
Notional amount of derivative | $ 354,158 | $ 351,668 | |
Derivative, fair value | $ 10,305 | $ 3,237 | |
Loans [Member] | Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative, Number of Instruments Held | derivative | 138 | 130 | |
Notional amount of derivative | $ 708,316 | $ 703,336 | |
Derivative, fair value | $ 0 | $ 0 | |
Other Liabilities [Member] | Interest rate swaps | Federal home loan bank 30-day | |||
Derivative [Line Items] | |||
Derivative, Number of Instruments Held | derivative | 63 | 42 | |
Notional amount of derivative | $ 334,395 | $ 226,884 | |
Derivative, fair value | $ (10,707) | $ (5,036) | |
[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, CONTINGENCIES AN64
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Schedule of interest rate lock commitments) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Other Commitments [Line Items] | ||
Derivative, Fair Value, Net | $ 123 | $ 142 |
Interest Rate Lock Commitments | ||
Other Commitments [Line Items] | ||
Notional amount of derivative | 24,753 | 21,746 |
Derivative Asset, Fair Value, Gross Asset | 308 | 307 |
Derivative Liability, Fair Value, Gross Liability | (35) | (22) |
Derivative, Fair Value, Net | 273 | 285 |
Other Assets [Member] | Interest Rate Lock Commitments | ||
Other Commitments [Line Items] | ||
Notional amount of derivative | 20,374 | 19,886 |
Other Liabilities [Member] | Interest Rate Lock Commitments | ||
Other Commitments [Line Items] | ||
Notional amount of derivative | $ 4,379 | $ 1,860 |
COMMITMENTS, CONTINGENCIES AN65
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Schedule of Derivatives Effects on OCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Net reclassification adjustment for effective portion of cash flow hedges included in interest expense, gross | $ 64 | $ 455 |
COMMITMENTS, CONTINGENCIES AN66
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Schedule of forward loan sale commitments) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Other Commitments [Line Items] | ||
Derivative, Fair Value, Net | $ 123 | $ 142 |
Forward Contracts [Member] | ||
Other Commitments [Line Items] | ||
Notional amount of derivative | 9,502 | 8,065 |
Derivative Asset, Fair Value, Gross Asset | 145 | 158 |
Derivative Liability, Fair Value, Gross Liability | (22) | (16) |
Derivative, Fair Value, Net | 123 | 142 |
Forward Contracts [Member] | Other Assets [Member] | ||
Other Commitments [Line Items] | ||
Notional amount of derivative | 8,155 | 6,692 |
Forward Contracts [Member] | Other Liabilities [Member] | ||
Other Commitments [Line Items] | ||
Notional amount of derivative | 1,347 | 1,373 |
Interest Rate Lock Commitments [Member] | ||
Other Commitments [Line Items] | ||
Notional amount of derivative | 24,753 | 21,746 |
Derivative Asset, Fair Value, Gross Asset | 308 | 307 |
Derivative Liability, Fair Value, Gross Liability | (35) | (22) |
Derivative, Fair Value, Net | 273 | 285 |
Interest Rate Lock Commitments [Member] | Other Assets [Member] | ||
Other Commitments [Line Items] | ||
Notional amount of derivative | 20,374 | 19,886 |
Interest Rate Lock Commitments [Member] | Other Liabilities [Member] | ||
Other Commitments [Line Items] | ||
Notional amount of derivative | $ 4,379 | $ 1,860 |
COMMITMENTS, CONTINGENCIES AN67
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Schedule of Derivatives Effect on OCI and Current Earnings) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ 1,328 | $ 90 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 64 | $ 455 |