Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 30, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | CAMDEN NATIONAL CORP | |
Entity Central Index Key | 0000750686 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 15,192,799 |
CONSOLIDATED STATEMENTS OF COND
CONSOLIDATED STATEMENTS OF CONDITION (CURRENT PERIOD UNAUDITED) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 63,620 | $ 52,240 |
Interest-bearing deposits in other banks (including restricted cash) | 73,912 | 14,759 |
Total cash, cash equivalents and restricted cash | 137,532 | 66,999 |
Investments: | ||
Available-for-sale securities, at fair value (book value of $903,988 and $933,399, respectively) | 913,523 | 910,692 |
Held-to-maturity securities, at amortized cost (fair value of $1,352 and $1,291, respectively) | 1,303 | 1,307 |
Other investments | 11,618 | 14,679 |
Total investments | 926,444 | 926,678 |
Loans held for sale, at fair value (book value of $16,630 and $4,314, respectively) | 16,449 | 4,403 |
Loans | 3,110,634 | 3,026,222 |
Less: allowance for loan losses | (25,688) | (24,712) |
Net loans | 3,084,946 | 3,001,510 |
Goodwill | 94,697 | 94,697 |
Other intangible assets | 3,701 | 4,230 |
Bank-owned life insurance | 91,729 | 89,919 |
Premises and equipment, net | 40,930 | 42,495 |
Deferred tax assets | 15,656 | 23,053 |
Other assets | 108,231 | 43,451 |
Total assets | 4,520,315 | 4,297,435 |
Deposits: | ||
Non-interest checking | 573,621 | 496,729 |
Interest checking | 1,147,627 | 1,023,373 |
Savings and money market | 1,105,290 | 1,137,356 |
Certificates of deposit | 541,199 | 443,912 |
Brokered deposits | 250,226 | 363,104 |
Total deposits | 3,617,963 | 3,464,474 |
Short-term borrowings | 273,454 | 270,868 |
Long-term borrowings | 10,000 | 11,580 |
Subordinated debentures | 59,005 | 59,067 |
Accrued interest and other liabilities | 88,221 | 55,621 |
Total liabilities | 4,048,643 | 3,861,610 |
Commitments and Contingencies | ||
Shareholders’ Equity | ||
Common stock, no par value: authorized 40,000,000 shares, issued and outstanding 15,224,903 and 15,591,914 on September 30, 2019 and December 31, 2018, respectively | 142,215 | 158,215 |
Retained earnings | 330,340 | 302,030 |
Accumulated other comprehensive loss: | ||
Net unrealized gains (losses) on available-for-sale debt securities, net of tax | 7,484 | (17,826) |
Net unrealized losses on cash flow hedging derivative instruments, net of tax | (6,355) | (4,437) |
Net unrecognized losses on postretirement plans, net of tax | (2,012) | (2,157) |
Total accumulated other comprehensive loss | (883) | (24,420) |
Total shareholders’ equity | 471,672 | 435,825 |
Total liabilities and shareholders’ equity | $ 4,520,315 | $ 4,297,435 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF CONDITION (CURRENT PERIOD UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Available-for-sale Securities, Noncurrent | $ 903,988 | $ 933,399 |
Debt Securities, Held-to-maturity, Fair Value | 1,352 | 1,291 |
Loans held for sale | $ 16,630 | $ 4,314 |
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) | 15,224,903 | 15,591,914 |
Common stock, outstanding (in shares) | 15,224,903 | 15,591,914 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest Income | ||||
Interest and fees on loans | $ 36,207 | $ 32,813 | $ 108,020 | $ 94,014 |
Taxable interest on investments | 4,794 | 4,408 | 14,729 | 13,019 |
Nontaxable interest on investments | 675 | 659 | 1,943 | 1,989 |
Dividend income | 158 | 367 | 562 | 997 |
Other interest income | 686 | 310 | 1,712 | 905 |
Total interest income | 42,520 | 38,557 | 126,966 | 110,924 |
Interest Expense | ||||
Interest on deposits | 8,963 | 5,255 | 26,542 | 13,463 |
Interest on borrowings | 801 | 2,021 | 2,660 | 6,099 |
Interest on subordinated debentures | 833 | 858 | 2,373 | 2,556 |
Total interest expense | 10,597 | 8,134 | 31,575 | 22,118 |
Net interest income | 31,923 | 30,423 | 95,391 | 88,806 |
Provision for credit losses | 730 | 354 | 2,647 | 840 |
Net interest income after provision for credit losses | 31,193 | 30,069 | 92,744 | 87,966 |
Non-Interest Income | ||||
Mortgage banking income, net | 2,668 | 1,758 | 5,662 | 4,758 |
Brokerage and insurance commissions | 625 | 615 | 1,942 | 1,950 |
Bank-owned life insurance | 613 | 606 | 1,810 | 1,823 |
Customer loan swap fees | 109 | 288 | 919 | 555 |
Net gain on sale of securities | 1 | 664 | 28 | 695 |
Other income | 877 | 877 | 2,498 | 2,551 |
Total non-interest income | 10,739 | 10,392 | 30,165 | 28,697 |
Non-Interest Expense | ||||
Salaries and employee benefits | 13,604 | 13,143 | 40,043 | 38,433 |
Furniture, equipment and data processing | 2,708 | 2,575 | 8,111 | 7,710 |
Net occupancy costs | 1,710 | 1,614 | 5,263 | 5,112 |
Consulting and professional fees | 892 | 958 | 2,679 | 2,878 |
Debit card expense | 960 | 833 | 2,666 | 2,339 |
Regulatory assessments | 182 | 447 | 1,091 | 1,447 |
Amortization of intangible assets | 177 | 182 | 529 | 544 |
Other real estate owned and collection costs, net | 251 | 239 | 353 | 565 |
Other expenses | 3,264 | 3,175 | 9,754 | 9,337 |
Total non-interest expense | 23,748 | 23,166 | 70,489 | 68,365 |
Income before income tax expense | 18,184 | 17,295 | 52,420 | 48,298 |
Income tax expense | 3,696 | 3,238 | 10,455 | 9,204 |
Net Income | $ 14,488 | $ 14,057 | $ 41,965 | $ 39,094 |
Per Share Data | ||||
Basic earnings per share | $ 0.94 | $ 0.90 | $ 2.70 | $ 2.50 |
Diluted earnings per share | $ 0.94 | $ 0.90 | $ 2.70 | $ 2.50 |
Weighted average number of common shares outstanding | 15,339,093 | 15,580,782 | 15,482,765 | 15,565,355 |
Diluted weighted average number of common shares outstanding | 15,381,928 | 15,638,986 | 15,522,501 | 15,621,400 |
Cash dividends declared per share | $ 0.30 | $ 0.30 | $ 0.90 | $ 0.85 |
Debit Card [Member] | ||||
Non-Interest Income | ||||
Revenue | $ 2,432 | $ 2,173 | $ 6,723 | $ 6,228 |
Deposit Account [Member] | ||||
Non-Interest Income | ||||
Revenue | 1,970 | 2,072 | 6,202 | 6,108 |
Fiduciary and Trust [Member] | ||||
Non-Interest Income | ||||
Revenue | $ 1,444 | $ 1,339 | $ 4,381 | $ 4,029 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Net Income | $ 14,488 | $ 14,057 | $ 41,965 | $ 39,094 | |
Net change in unrealized gains (losses) on available-for-sale securities: | |||||
Net change in unrealized gains (losses) on available-for-sale securities, net of tax of ($978), $1,084, ($6,938) and $3,958, respectively | 3,573 | (3,959) | 25,332 | (18,467) | |
Net reclassification adjustment for net (gains) losses included in net income, net of tax of $0, ($59), $6 and ($66), respectively | [1] | (1) | 216 | (22) | 240 |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax | 3,572 | (3,743) | 25,310 | (18,227) | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax [Abstract] | |||||
Net change in unrealized losses on cash flow hedging derivatives, net of tax of $84, ($127), $667 and ($556), respectively | (310) | 462 | (2,438) | 2,031 | |
Net reclassification adjustment for effective portion of cash flow hedges, net of tax of ($73), ($68), ($142) and ($143), respectively | [2] | 269 | 139 | 520 | 522 |
Net change in unrealized losses on cash flow hedging derivatives, net of tax | (41) | 601 | (1,918) | 2,553 | |
Reclassification of amortization of net unrecognized actuarial loss and prior service cost, net of tax of ($13), ($31), ($39) and ($94), respectively | [3] | 49 | 115 | 145 | 347 |
Other comprehensive income (loss) | 3,580 | (3,027) | 23,537 | (15,327) | |
Comprehensive Income | $ 18,068 | $ 11,030 | $ 65,502 | $ 23,767 | |
[1] | (1)Reclassified into the consolidated statements of income within net gain on sale of securities. | ||||
[2] | (2)Reclassified into the consolidated statements of income within interest and fees on loans, interest on borrowings and subordinated debentures. | ||||
[3] | (3)Reclassified into the consolidated statements of income within salaries and employee benefits and other expenses. |
CONSOLIDATED STATEMENTS OF CO_3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net change in unrealized gains (losses) on available-for-sale securities, net of tax of ($978), $1,084, ($6,938) and $3,958, respectively | $ (978) | $ 1,084 | $ (6,938) | $ 3,958 |
Net reclassification adjustment for net (gains) losses included in net income, net of tax of $0, ($59), $6 and ($66), respectively(1) | 0 | (59) | 6 | (66) |
Net change in unrealized losses on cash flow hedging derivatives, net of tax of $84, ($127), $667 and ($556), respectively | 84 | (127) | 667 | (556) |
Net reclassification adjustment for effective portion of cash flow hedges, net of tax of ($73), ($68), ($142) and ($143), respectively(2) | (73) | (68) | (142) | (143) |
Reclassification of amortization of net unrecognized actuarial loss and prior service cost, net of tax of ($13), ($31), ($39) and ($94), respectively(3) | $ (13) | $ (31) | $ (39) | $ (94) |
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, 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 | 39,094 | 39,094 | |||
Other comprehensive income, net of tax | [1] | (15,327) | (15,327) | ||
Stock-based compensation expense | 1,405 | $ 1,405 | |||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit (shares) | 59,822 | ||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings | (290) | $ (290) | |||
Cash dividends declared | (13,274) | (13,274) | |||
Ending Balance (in shares) at Sep. 30, 2018 | 15,584,526 | ||||
Ending Balance at Sep. 30, 2018 | 415,686 | $ 158,019 | 292,741 | (35,074) | |
Beginning Balance (in shares) at Jun. 30, 2018 | 15,576,249 | ||||
Beginning Balance at Jun. 30, 2018 | 408,819 | $ 157,494 | 283,372 | (32,047) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 14,057 | 14,057 | |||
Other comprehensive income, net of tax | (3,027) | (3,027) | |||
Stock-based compensation expense | 394 | $ 394 | |||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit (shares) | 8,277 | ||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings | 131 | $ 131 | |||
Cash dividends declared | (4,688) | (4,688) | |||
Ending Balance (in shares) at Sep. 30, 2018 | 15,584,526 | ||||
Ending Balance at Sep. 30, 2018 | 415,686 | $ 158,019 | 292,741 | (35,074) | |
Beginning Balance (in shares) at Dec. 31, 2018 | 15,591,914 | ||||
Beginning Balance at Dec. 31, 2018 | 435,825 | $ 158,215 | 302,030 | (24,420) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 41,965 | 41,965 | |||
Other comprehensive income, net of tax | 23,537 | 23,537 | |||
Stock-based compensation expense | 1,364 | $ 1,364 | |||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit (shares) | 37,202 | ||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings | (190) | $ (190) | |||
Cash dividends declared | (13,909) | (13,909) | |||
Common stock repurchased | (17,174) | $ 17,174 | |||
Common stock repurchased (in shares) | (404,213) | ||||
Ending Balance (in shares) at Sep. 30, 2019 | 15,224,903 | ||||
Ending Balance at Sep. 30, 2019 | 471,672 | $ 142,215 | 330,340 | (883) | |
Beginning Balance (in shares) at Jun. 30, 2019 | 15,457,480 | ||||
Beginning Balance at Jun. 30, 2019 | 467,759 | $ 151,801 | 320,421 | (4,463) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income | 14,488 | 14,488 | |||
Other comprehensive income, net of tax | 3,580 | 3,580 | |||
Stock-based compensation expense | 429 | $ 429 | |||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit (shares) | 4,858 | ||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings | 51 | $ 51 | |||
Cash dividends declared | (4,569) | (4,569) | |||
Common stock repurchased | (10,066) | $ 10,066 | |||
Common stock repurchased (in shares) | (237,435) | ||||
Ending Balance (in shares) at Sep. 30, 2019 | 15,224,903 | ||||
Ending Balance at Sep. 30, 2019 | $ 471,672 | $ 142,215 | $ 330,340 | $ (883) | |
[1] | Effective January 1, 2018, the Company adopted ASU 2016-01, Income Statement - Financial Instruments. As a result of the adoption, the Company reclassified its unrealized gain on equity investments from accumulated other comprehensive loss to retained earnings. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared, per share | $ 0.30 | $ 0.30 | $ 0.90 | $ 0.85 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Activities | ||
Net Income | $ 41,965,000 | $ 39,094,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Originations of mortgage loans held for sale | (176,782,000) | (157,736,000) |
Proceeds from the sale of mortgage loans | 168,394,000 | 159,740,000 |
Gain on sale of mortgage loans, net of origination costs | (3,928,000) | (4,126,000) |
Provision for credit losses | 2,647,000 | 840,000 |
Depreciation and amortization expense | 2,889,000 | 2,845,000 |
Investment securities amortization and accretion, net | 2,148,000 | 2,428,000 |
Stock-based compensation expense | 1,364,000 | 1,405,000 |
Amortization of intangible assets | 529,000 | 544,000 |
Purchase accounting accretion, net | (1,180,000) | (1,484,000) |
Increase in other assets | (32,299,000) | (6,173,000) |
(Decrease) increase in other liabilities | (2,897,000) | 16,170,000 |
Net cash provided by operating activities | 2,850,000 | 53,547,000 |
Investing Activities | ||
Proceeds from sales and maturities of available-for-sale securities | 247,991,000 | 135,282,000 |
Purchase of available-for-sale securities | (220,696,000) | (148,842,000) |
Proceeds from maturities of held-to-maturity securities | 0 | 750,000 |
Net increase in loans | (85,817,000) | (126,860,000) |
Purchase of Federal Home Loan Bank stock | (4,340,000) | (9,391,000) |
Proceeds from sale of Federal Home Loan Bank stock | 7,463,000 | 16,943,000 |
Purchase of premises and equipment | 2,378,000 | 2,879,000 |
Proceeds from the sale of premises and equipment | 0 | 749,000 |
Proceeds from other investments | 0 | 205,000 |
Recoveries of previously charged-off loans | 228,000 | 361,000 |
Proceeds from the sale of other real estate owned | 554,000 | 0 |
Net cash used by investing activities | (56,995,000) | (133,682,000) |
Financing Activities | ||
Net increase in deposits | 153,539,000 | 220,376,000 |
Net proceeds from (repayments of) borrowings less than 90 days | 2,586,000 | (132,098,000) |
Common stock repurchases | (17,174,000) | 0 |
Exercise of stock options and issuance of restricted stock, net of repurchase for tax withholdings | (190,000) | (290,000) |
Cash dividends paid on common stock | 14,004,000 | 12,482,000 |
Finance lease payments | (79,000) | 0 |
Net cash provided by financing activities | 124,678,000 | 75,506,000 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 70,533,000 | (4,629,000) |
Cash, cash equivalents, and restricted cash at beginning of period | 66,999,000 | 102,971,000 |
Cash, cash equivalents and restricted cash at end of period | 137,532,000 | 98,342,000 |
Supplemental information | ||
Interest paid | 31,402,000 | 21,434,000 |
Income taxes paid | 9,785,000 | 8,926,000 |
Transfer from loans to other real estate owned | $ 543,000 | $ 55,000 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2019 | |
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 (the "Company") as of September 30, 2019 and December 31, 2018 , the consolidated statements of income for the three and nine months ended September 30, 2019 and 2018 , the consolidated statements of comprehensive income for the three and nine months ended September 30, 2019 and 2018 , the consolidated statements of changes in shareholders' equity for the three and nine months ended September 30, 2019 and 2018 , and the consolidated statements of cash flows for the nine months ended September 30, 2019 and 2018 . The consolidated financial statements include the accounts of the Company and Camden National Bank (the "Bank"), a wholly-owned subsidiary of the Company (which includes the consolidated accounts of Healthcare Professional Funding Corporation ("HPFC"), Property A, Inc. and Property P, Inc.). All intercompany accounts and transactions have been eliminated in consolidation. Assets held by the Bank in a fiduciary capacity, through Camden National Wealth Management, a division of the Bank, are not assets of the Company and, therefore, are not included in the consolidated statements of condition. The Company also owns 100% of the common stock of Camden Capital Trust A and Union Bankshares Capital Trust I; these entities are unconsolidated subsidiaries of the Company. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. Such reclassifications did not impact net income or shareholders' equity as previously reported. Net income reported for the three and nine months ended September 30, 2019 , 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 Company's Annual Report on Form 10-K for the year ended December 31, 2018 . The acronyms, abbreviations and definitions identified below are used throughout this Form 10-Q, including Part I. "Financial Information" and Part II. "Management's Discussion and Analysis of Financial Condition and Results of Operations." The following is provided to aid the reader and provide a reference page when reviewing these sections of the Form 10-Q. AFS: Available-for-sale GAAP: Generally accepted accounting principles in the United States ALCO: Asset/Liability Committee HPFC: Healthcare Professional Funding Corporation, a wholly-owned subsidiary of Camden National Bank ALL: Allowance for loan losses HTM: Held-to-maturity AOCI: Accumulated other comprehensive income (loss) IRS: Internal Revenue Service ASC: Accounting Standards Codification LIBOR: London Interbank Offered Rate ASU: Accounting Standards Update LTIP: Long-Term Performance Share Plan Bank: Camden National Bank, a wholly-owned subsidiary of Camden National Corporation Management ALCO: Management Asset/Liability Committee BOLI: Bank-owned life insurance MBS: Mortgage-backed security Board ALCO: Board of Directors' Asset/Liability Committee MSPP: Management Stock Purchase Plan CCTA: Camden Capital Trust A, an unconsolidated entity formed by Camden National Corporation N.M.: Not meaningful CDs: Certificate of deposits OCC: Office of the Comptroller of the Currency Company: Camden National Corporation OCI: Other comprehensive income (loss) CMO: Collateralized mortgage obligation OREO: Other real estate owned DCRP: Defined Contribution Retirement Plan OTTI: Other-than-temporary impairment 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 |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Accounting Standards Adopted The Company adopted the following accounting standards in 2019, and such standards have been accounted for and presented within the accompanying consolidated financial statements for the three and nine months ended September 30, 2019 as follows: 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. Prior lease accounting did not require the inclusion of operating leases in the balance sheet. Effective January 1, 2019, the Company adopted ASU 2016-02, using the following practical expedients for transitional relief provided for within the subsequent issuance of ASU No. 2018-11, Leases (Topic 842): Targeted Improvements ("ASU 2018-11"): • An entity need not reassess whether any expired or existing contract is or contains leases. • An entity need not reassess the lease classification for any expired or existing leases. • An entity need not reassess initial direct costs for any existing leases. • An entity may elect to apply hindsight to leases that existed during the period from the beginning of the earliest period presented in the financial statements until the effective date. • A modified retrospective transition method, which allows companies to apply ASU 2016-02 at the date of adoption and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. In conjunction with the adoption of Topic 842, the Company made the following accounting policy elections: • For leases with a term of 12 months or less, a right-of-use asset or lease liability will not be recognized on the consolidated statements of condition. • For non-real estate leased assets with individual undiscounted contractual cash flows of less than $500,000 over the reasonably certain term of the lease, a right-of-use asset or lease liability will not be recognized on the consolidated statements of condition as the lease is considered immaterial to the Company's financial statements. The Company has completed its assessment and implementation process for ASU 2016-02 and recorded operating and finance lease right-of-use assets of $12.1 million and lease liabilities of $12.3 million on the consolidated statements of condition within other assets and other liabilities, respectively, on January 1, 2019. Because the modified-retrospective transition method was used, the Company did not revise prior period presentation on its consolidated statements of income. The adoption of the ASU did not have a material effect on the consolidated financial statements, which included a cumulative-effect adjustment of $254,000 to retained earnings on January 1, 2019. Refer to Note 5 for further details. Accounting Standards Issued The following are recently issued accounting pronouncements that have yet to be adopted by the Company: ASU No. 2016-13 , Financial Instruments - Credit Losses (Topic 326): M easurement of Credit Losses on Financial Instruments ("ASU 2016-13") , updated by ASU No. 2018-19, Financial Instruments - Credit Losses (Topic 326): Codification Improvements to Topic 326 ("ASU 2018-19") , and ASU No. 2019-05, Financial Instruments - Credit Losses (Topic 326) : Targeted Transition Relief ("ASU 2019-05") . 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 the Company, and the Company will adopt the ASU, for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. The Company will adopt the guidance using 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. In May 2019, the FASB issued ASU 2019-05 to provide entities impacted by ASU 2016-13 with targeted transition relief upon adoption. ASU 2019-05 provided that for certain instruments within the scope of ASU 2016-13 the option to irrevocably elect the fair value option in accordance with Subtopic 825-10, Financial Instruments - Overall ("ASC 825"), applied on an instrument-by-instrument basis. The fair value option election does not apply to HTM debt securities. An entity that elects the fair value option is to apply the guidance in Subtopics 820-10, Fair Value Measurement - Overall, and ASC 825-10. The Company will not elect the fair value option upon adoption of ASU 2016-13. While the Company continues to prepare for the adoption of ASU 2016-13 on January 1, 2020, it recognizes that changes to the consolidated financial statements upon adoption are imminent as the ASU requires: • A change in the Company's assessment of its ALL and allowance on certain unused commitments and guarantees 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. Furthermore, upon adoption of the ASU, the amount and timing of provision for credit losses and related allowance for credit losses may change, impacting net income and shareholders' equity in those periods. • An allowance on the expected losses over the life of the Company's HTM investments to be recorded upon adoption, which may reduce the carrying value of these securities. • 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). In 2015, the Company began its preparation for ASU 2016-13, understanding the significance of the standard and its potential impact to its consolidated financial statements and the financial industry. Although the Company continues to review, validate and refine its loss methodologies in accordance with ASU 2016-13, as well as review, assess and refine its control environment to accommodate the requirements of ASU 2016-13, it has completed certain critical tasks and components as it prepares for adoption on January 1, 2020, such as the assessment and validation of critical data points. At this time, the Company does not have an estimated financial impact of adoption to its consolidated financial statements. The Company will disclose the impact of the adoption of ASU 2016-03 in its year ending December 31, 2019 annual report on Form 10-K as it pertains to the Company's loan portfolio and certain unfunded commitments and guarantees. Upon adoption of ASU 2016-13, the Company does not believe the change in accounting for HTM investments will have a material impact on the Company's consolidated financial statements as the Company's HTM investment portfolio is immaterial at September 30, 2019. Should the make-up of the Company's HTM investment portfolio change in the fourth quarter of 2019, then the impact of the ASU could become more significant. The Company continues to monitor and assess exposure drafts produced by the FASB pertaining to ASU 2016-13. ASU No. 2017-04 , Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"): In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"). ASU 2017-04 was issued 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, and will be adopted by the Company, on January 1, 2020 and will be applied prospectively. The Company does not expect the ASU to have a material impact on the consolidated financial statements upon adoption. The Company continues to monitor and assess exposure drafts produced by the FASB pertaining to this topic. |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Sep. 30, 2019 | |
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 investments, as of the dates indicated: (In thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value September 30, 2019 AFS Investments (carried at fair value): Obligations of states and political subdivisions $ 109,519 $ 2,649 $ (169 ) $ 111,999 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 449,112 5,799 (838 ) 454,073 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 335,797 3,653 (1,734 ) 337,716 Subordinated corporate bonds 9,560 175 — 9,735 Total AFS investments $ 903,988 $ 12,276 $ (2,741 ) $ 913,523 HTM Investments (carried at amortized cost): Obligations of states and political subdivisions $ 1,303 $ 49 $ — $ 1,352 Total HTM investments $ 1,303 $ 49 $ — $ 1,352 December 31, 2018 AFS Investments (carried at fair value): Obligations of states and political subdivisions $ 94,430 $ 216 $ (894 ) $ 93,752 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 466,613 583 (13,524 ) 453,672 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 351,958 1,007 (10,071 ) 342,894 Subordinated corporate bonds 20,398 23 (47 ) 20,374 Total AFS investments $ 933,399 $ 1,829 $ (24,536 ) $ 910,692 HTM Investments (carried at amortized cost): Obligations of states and political subdivisions $ 1,307 $ 8 $ (24 ) $ 1,291 Total HTM investments $ 1,307 $ 8 $ (24 ) $ 1,291 Net unrealized gains on AFS investments reported within AOCI at September 30, 2019 , were $7.5 million , net of a deferred tax liability of $2.0 million . Net unrealized losses on AFS investments reported within AOCI at December 31, 2018 , were $17.8 million , net of a deferred tax benefit of $4.9 million . Impaired AFS and HTM Investments: Quarterly, management 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 that was considered temporary, by length of time that an individual security in each category has been in a continuous loss position as of the dates indicated: Less Than 12 Months 12 Months or More Total (In thousands, except number of holdings) Number of Holdings Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses September 30, 2019 AFS Investments: Obligations of states and political subdivisions 9 $ 24,439 $ (169 ) $ — $ — $ 24,439 $ (169 ) Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 40 36,108 (50 ) 86,109 (788 ) 122,217 (838 ) Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 29 34,972 (85 ) 73,709 (1,649 ) 108,681 (1,734 ) Total AFS investments 78 $ 95,519 $ (304 ) $ 159,818 $ (2,437 ) $ 255,337 $ (2,741 ) December 31, 2018 AFS Investments: Obligations of states and political subdivisions 114 $ 36,218 $ (281 ) $ 28,437 $ (613 ) $ 64,655 $ (894 ) Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 117 46,459 (252 ) 364,430 (13,272 ) 410,889 (13,524 ) Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 63 5,956 (40 ) 227,461 (10,031 ) 233,417 (10,071 ) Subordinated corporate bonds 6 11,378 (26 ) 966 (21 ) 12,344 (47 ) Total AFS investments 300 $ 100,011 $ (599 ) $ 621,294 $ (23,937 ) $ 721,305 $ (24,536 ) HTM Investments: Obligations of states and political subdivisions 2 $ 509 $ (5 ) $ 411 $ (19 ) $ 920 $ (24 ) Total HTM investments 2 $ 509 $ (5 ) $ 411 $ (19 ) $ 920 $ (24 ) At September 30, 2019 and December 31, 2018, unrealized losses within the AFS and HTM investment portfolios were reflective of current interest rates in excess of the yield received on debt investments, and were not indicative of an overall change in credit quality or other factors. At September 30, 2019 and December 31, 2018 , gross unrealized losses on the Company's AFS and HTM investments were 1% and 3% , respectively, of their respective fair values. At September 30, 2019 , the Company had the intent and ability to retain its debt investments in an unrealized loss position until the decline in value has recovered. Sale of AFS Investments: The following table details the Company's sales of AFS investments for the periods indicated below: Three Months Ended Nine Months Ended (In thousands) 2019 2018 2019 2018 Proceeds from sales of investments (1) $ 97,042 $ 22,830 $ 142,868 $ 32,728 Gross realized gains 1,015 — 1,386 31 Gross realized losses (1,014 ) (275 ) (1,358 ) (275 ) (1) The Company had not previously recorded any OTTI on these investments sold. AFS and HTM Investments Pledged: At September 30, 2019 and December 31, 2018 , AFS and HTM investments with an amortized cost of $704.6 million and $734.1 million and estimated fair values of $711.5 million and $714.4 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 September 30, 2019 , 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. (In thousands) Amortized Cost Fair Value AFS Investments Due in one year or less $ — $ — Due after one year through five years 82,995 83,568 Due after five years through ten years 186,981 189,976 Due after ten years 634,012 639,979 $ 903,988 $ 913,523 HTM Investments Due in one year or less $ — $ — Due after one year through five years — — Due after five years through ten years 1,303 1,352 Due after ten years — — $ 1,303 $ 1,352 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: (In thousands) Cost Unrealized Gains Unrealized Losses Fair Value / Carrying Value September 30, 2019 Equity securities - bank stock (carried at fair value) $ 544 $ 264 $ — $ 808 FHLBB (carried at cost) 5,436 — — 5,436 FRB (carried at cost) 5,374 — — 5,374 Total other investments $ 11,354 $ 264 $ — $ 11,618 December 31, 2018 Equity securities - bank stock (carried at fair value) $ 544 $ 202 $ — $ 746 FHLBB (carried at cost) 8,559 — — 8,559 FRB (carried at cost) 5,374 — — 5,374 Total other investments $ 14,477 $ 202 $ — $ 14,679 For the three months ended September 30, 2019 and 2018, the Company recognized an unrealized (loss) gain of ($22,000) and $11,000 , respectively, due to the change in fair value of its bank stock equity securities, which was presented within other income on the consolidated statements of income. For the nine months ended September 30, 2019 and 2018, the Company recognized an unrealized gain (loss) of $62,000 and ($13,000) , respectively, due to the change in fair value of its bank stock equity securities, which was presented within other income on the consolidated statements of income. For the three and nine months ended September 30, 2018, the Company sold its remaining shares of Visa Inc. Class B common stock, with a carrying value of $441,000 that was presented within other assets on the consolidated statements of condition. The sale resulted in a gain of $939,000 that has been presented within net gain on sale of securities on the consolidated statements of income. The Company did not record any OTTI on its FHLBB and FRB stock for the three or nine months ended September 30, 2019 and 2018. |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 9 Months Ended |
Sep. 30, 2019 | |
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, was as follows for the dates indicated: (In thousands) September 30, December 31, Residential real estate $ 1,061,898 $ 992,866 Commercial real estate 1,255,519 1,269,533 Commercial 421,754 381,780 Home equity 323,564 327,763 Consumer 24,187 20,624 HPFC 23,712 33,656 Total loans $ 3,110,634 $ 3,026,222 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 for the dates indicated: (In thousands) September 30, December 31, Net unamortized fair value mark discount on acquired loans $ 2,887 $ 3,936 Net unamortized loan origination costs (2,936 ) (1,865 ) Total $ (49 ) $ 2,071 The Bank’s lending activities are primarily conducted in Maine, but also include loan production offices in Massachusetts and New Hampshire. The Company originates single- 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. In the normal course of business, the Bank makes loans to certain officers, directors and their associated companies, under terms that are consistent with the Company's lending policies and regulatory requirements and that do not involve more than the normal risk of collectability or present other unfavorable features. At September 30, 2019 and December 31, 2018, outstanding loans to certain officers, directors and their associated companies was less than 5% of the Company's shareholders' equity. 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 HPFC 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 nine months ended September 30, 2019 . 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 manage the portfolio proactively 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 the following: 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, including for investment purposes. 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 and equipment, and/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 include 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 original terms range from seven to ten years. The following presents the activity in the ALL and select loan information by portfolio segment for the periods indicated: (In thousands) Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer HPFC Total For The Three and Nine Months Ended September 30, 2019 ALL for the three months ended: Beginning balance $ 6,249 $ 12,152 $ 4,107 $ 2,992 $ 383 $ 280 $ 26,163 Loans charged off (411 ) (92 ) (183 ) (348 ) (258 ) (11 ) (1,303 ) Recoveries 2 34 56 — 3 — 95 Provision (credit) (1) 382 (18 ) 124 132 145 (32 ) 733 Ending balance $ 6,222 $ 12,076 $ 4,104 $ 2,776 $ 273 $ 237 $ 25,688 ALL for the nine months ended: Beginning balance $ 6,071 $ 11,654 $ 3,620 $ 2,796 $ 234 $ 337 $ 24,712 Loans charged off (436 ) (157 ) (636 ) (392 ) (278 ) (11 ) (1,910 ) Recoveries 6 41 167 — 14 — 228 Provision (credit) (1) 581 538 953 372 303 (89 ) 2,658 Ending balance $ 6,222 $ 12,076 $ 4,104 $ 2,776 $ 273 $ 237 $ 25,688 ALL balance attributable to loans: Individually evaluated for impairment $ 337 $ 29 $ 303 $ 69 $ — $ — $ 738 Collectively evaluated for impairment 5,885 12,047 3,801 2,707 273 237 24,950 Total ending ALL $ 6,222 $ 12,076 $ 4,104 $ 2,776 $ 273 $ 237 $ 25,688 Loans: Individually evaluated for impairment $ 3,880 $ 406 $ 646 $ 585 $ — $ — $ 5,517 Collectively evaluated for impairment 1,058,018 1,255,113 421,108 322,979 24,187 23,712 3,105,117 Total ending loans balance $ 1,061,898 $ 1,255,519 $ 421,754 $ 323,564 $ 24,187 $ 23,712 $ 3,110,634 For The Three and Nine Months Ended September 30, 2018 ALL for the three months ended: Beginning balance $ 5,779 $ 10,310 $ 4,303 $ 2,616 $ 260 $ 400 $ 23,668 Loans charged off (115 ) — (150 ) (157 ) (28 ) (209 ) (659 ) Recoveries 37 4 117 — 3 1 162 Provision (credit) (1) 59 268 (302 ) 116 38 176 355 Ending balance $ 5,760 $ 10,582 $ 3,968 $ 2,575 $ 273 $ 368 $ 23,526 ALL for the nine months ended: Beginning balance $ 5,086 $ 11,863 $ 4,171 $ 2,367 $ 233 $ 451 $ 24,171 Loans charged off (231 ) (512 ) (448 ) (381 ) (70 ) (209 ) (1,851 ) Recoveries 52 19 237 44 8 1 361 Provision (credit) (1) 853 (788 ) 8 545 102 125 845 Ending balance $ 5,760 $ 10,582 $ 3,968 $ 2,575 $ 273 $ 368 $ 23,526 ALL balance attributable to loans: Individually evaluated for impairment $ 619 $ 23 $ — $ 114 $ — $ — $ 756 Collectively evaluated for impairment 5,141 10,559 3,968 2,461 273 368 22,770 Total ending ALL $ 5,760 $ 10,582 $ 3,968 $ 2,575 $ 273 $ 368 $ 23,526 Loans: Individually evaluated for impairment $ 5,184 $ 5,007 $ 1,548 $ 373 $ — $ — $ 12,112 Collectively evaluated for impairment 936,304 1,210,972 367,289 325,079 20,258 36,829 2,896,731 Total ending loans balance $ 941,488 $ 1,215,979 $ 368,837 $ 325,452 $ 20,258 $ 36,829 $ 2,908,843 (In thousands) Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer HPFC Total For The Year Ended December 31, 2018 ALL: Beginning balance $ 5,086 $ 11,863 $ 4,171 $ 2,367 $ 233 $ 451 $ 24,171 Loans charged off (173 ) (512 ) (736 ) (476 ) (96 ) (255 ) (2,248 ) Recoveries 90 28 1,770 44 11 1 1,944 Provision (credit) (1) 1,068 275 (1,585 ) 861 86 140 845 Ending balance $ 6,071 $ 11,654 $ 3,620 $ 2,796 $ 234 $ 337 $ 24,712 ALL balance attributable to loans: Individually evaluated for impairment $ 586 $ 23 $ 53 $ 162 $ — $ — $ 824 Collectively evaluated for impairment 5,485 11,631 3,567 2,634 234 337 23,888 Total ending ALL $ 6,071 $ 11,654 $ 3,620 $ 2,796 $ 234 $ 337 $ 24,712 Loans: Individually evaluated for impairment $ 4,762 $ 930 $ 786 $ 442 $ 6 $ — $ 6,926 Collectively evaluated for impairment 988,104 1,268,603 380,994 327,321 20,618 33,656 3,019,296 Total ending loans balance $ 992,866 $ 1,269,533 $ 381,780 $ 327,763 $ 20,624 $ 33,656 $ 3,026,222 (1) The provision (credit) for loan losses excludes any impact for the change in the reserve for unfunded commitments, which represents management's estimate of the amount required to reflect the probable inherent losses on outstanding letters of credit and unused lines of credit. The reserve for unfunded commitments is presented within accrued interest and other liabilities on the consolidated statements of condition. At September 30, 2019 and 2018, and December 31, 2018 , the reserve for unfunded commitments was $11,000 , $15,000 and $22,000 , respectively. The following reconciles the provision for loan losses to the provision for credit losses as presented on the consolidated statements of income for the periods indicated: Three Months Ended Nine Months Ended Year Ended December 31, 2018 (In thousands) 2019 2018 2019 2018 Provision for loan losses $ 733 $ 355 $ 2,658 $ 845 $ 845 Change in reserve for unfunded commitments (3 ) (1 ) (11 ) (5 ) 2 Provision for credit losses $ 730 $ 354 $ 2,647 $ 840 $ 847 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 September 30, 2019 , the Company's total exposure to the lessors of nonresidential buildings' industry was 12% of total loans and 31% of total commercial real estate loans. There were no other industry exposures exceeding 10% of the Company's total loan portfolio as of September 30, 2019 . 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: (In thousands) Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer HPFC Total September 30, 2019 Pass (Grades 1-6) $ 1,053,013 $ 1,224,231 $ 416,591 $ — $ — $ 22,675 $ 2,716,510 Performing — — — 320,961 24,180 — 345,141 Special Mention (Grade 7) 477 17,047 2,591 — — 90 20,205 Substandard (Grade 8) 8,408 14,241 2,572 — — 947 26,168 Non-performing — — — 2,603 7 — 2,610 Total $ 1,061,898 $ 1,255,519 $ 421,754 $ 323,564 $ 24,187 $ 23,712 $ 3,110,634 December 31, 2018 Pass (Grades 1-6) $ 983,086 $ 1,247,190 $ 374,429 $ — $ — $ 32,261 $ 2,636,966 Performing — — — 325,917 20,595 — 346,512 Special Mention (Grade 7) 887 7,921 3,688 — — 123 12,619 Substandard (Grade 8) 8,893 14,422 3,663 — — 1,272 28,250 Non-performing — — — 1,846 29 — 1,875 Total $ 992,866 $ 1,269,533 $ 381,780 $ 327,763 $ 20,624 $ 33,656 $ 3,026,222 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 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: (In thousands) 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Outstanding Loans > 90 Days Past Due and Accruing Non-Accrual Loans September 30, 2019 Residential real estate $ 1,200 $ 578 $ 3,529 $ 5,307 $ 1,056,591 $ 1,061,898 $ — $ 5,152 Commercial real estate 637 1,606 704 2,947 1,252,572 1,255,519 — 1,156 Commercial 280 855 735 1,870 419,884 421,754 — 751 Home equity 917 86 2,004 3,007 320,557 323,564 — 2,609 Consumer 65 19 6 90 24,097 24,187 — 7 HPFC 30 163 370 563 23,149 23,712 — 450 Total $ 3,129 $ 3,307 $ 7,348 $ 13,784 $ 3,096,850 $ 3,110,634 $ — $ 10,125 December 31, 2018 Residential real estate $ 3,300 $ 2,046 $ 4,520 $ 9,866 $ 983,000 $ 992,866 $ — $ 5,492 Commercial real estate 1,794 369 1,108 3,271 1,266,262 1,269,533 — 1,380 Commercial 150 19 799 968 380,812 381,780 — 1,279 Home equity 907 607 1,476 2,990 324,773 327,763 — 1,846 Consumer 67 15 29 111 20,513 20,624 14 15 HPFC — 183 423 606 33,050 33,656 — 518 Total $ 6,218 $ 3,239 $ 8,355 $ 17,812 $ 3,008,410 $ 3,026,222 $ 14 $ 10,530 Interest income that would have been recognized if loans on non-accrual status had been current in accordance with their original terms was $106,000 and $171,000 for the three months ended September 30, 2019 and 2018 , respectively. For the nine months ended September 30, 2019 and 2018, the interest income that would have been recognized if loans on non-accrual status had been current in accordance with their original terms was $330,000 and $507,000 , 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 dates indicated: Number of Contracts Recorded Investment Specific Reserve (In thousands, except number of contracts) September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Residential real estate 21 25 $ 3,095 $ 3,614 $ 337 $ 443 Commercial real estate 2 2 341 347 29 23 Commercial 2 2 128 141 — — Home equity 1 2 299 304 69 162 Total 26 31 $ 3,863 $ 4,406 $ 435 $ 628 At September 30, 2019 , the Company had performing and non-performing TDRs with a recorded investment balance of $3.3 million and $604,000 , respectively. At December 31, 2018, the Company had performing and non-performing TDRs with a recorded investment balance of $3.9 million and $513,000 , respectively. The following represents loan modifications that qualify as TDRs that occurred for the periods indicated: (In thousands, except number of contracts) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Specific Reserve 2019 2018 2019 2018 2019 2018 2019 2018 For the three months ended Residential real estate: Interest rate and maturity concession — 1 $ — $ 68 $ — $ 68 $ — $ 12 Payment deferral — 1 — 166 — 166 — 45 Total — 2 $ — $ 234 $ — $ 234 $ — $ 57 For the nine months ended Residential real estate: Interest rate and maturity concession — 2 $ — $ 231 $ — $ 254 $ — $ 51 Payment deferral — 1 — 166 — 166 — 45 Total — 3 $ — $ 397 $ — $ 420 $ — $ 96 For the three and nine months ended September 30, 2019, no loans were modified as TDRs within the previous 12 months for which the borrower subsequently defaulted. For the three months ended September 30, 2018, no loans were modified as TDRs within the previous 12 months for which the borrower subsequently defaulted. For the nine months ended September 30, 2018, one home equity loan with a recorded investment of $299,000 was modified as a TDR 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 periods indicated: For the Three Months Ended For the Nine Months Ended (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Interest September 30, 2019: With an allowance recorded: Residential real estate $ 2,337 $ 2,337 $ 337 $ 3,026 $ 28 $ 3,137 $ 84 Commercial real estate 130 130 29 130 3 130 9 Commercial 442 442 303 301 — 365 — Home equity 318 318 69 658 — 573 — Consumer — — — — — — — HPFC — — — — — — — Ending balance 3,227 3,227 738 4,115 31 4,205 93 Without an allowance recorded: Residential real estate 1,543 2,007 — 1,337 11 1,325 28 Commercial real estate 276 435 — 278 3 408 10 Commercial 204 267 — 214 1 218 5 Home equity 267 705 — 131 — 130 — Consumer — — — — — — — HPFC — — — — — — — Ending balance 2,290 3,414 — 1,960 15 2,081 43 Total impaired loans $ 5,517 $ 6,641 $ 738 $ 6,075 $ 46 $ 6,286 $ 136 September 30, 2018: With an allowance recorded: Residential real estate $ 3,577 $ 3,577 $ 619 $ 3,541 $ 27 $ 2,428 $ 96 Commercial real estate 349 349 23 350 6 2,428 17 Commercial — — — — — — — Home equity 318 318 114 391 — 232 — Consumer — — — — — — — HPFC — — — — — — — Ending Balance 4,244 4,244 756 4,282 33 5,088 113 Without an allowance recorded: Residential real estate 1,607 1,807 — 1,750 13 1,582 27 Commercial real estate 4,658 4,944 — 4,700 — 2,637 — Commercial 1,548 2,725 — 1,580 2 1,666 6 Home equity 55 206 — 39 — 213 — Consumer — — — — — — — HPFC — — — — — — — Ending Balance 7,868 9,682 — 8,069 15 6,098 33 Total impaired loans $ 12,112 $ 13,926 $ 756 $ 12,351 $ 48 $ 11,186 $ 146 For the Year Ended (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2018: With an allowance recorded: Residential real estate $ 3,471 $ 3,471 $ 586 $ 3,591 $ 127 Commercial real estate 131 131 23 1,969 11 Commercial 556 556 53 111 — Home equity 318 318 162 250 — Consumer — — — — — HPFC — — — — — Ending Balance 4,476 4,476 824 5,921 138 Without an allowance recorded: Residential real estate 1,291 1,415 — 1,524 34 Commercial real estate 799 975 — 2,269 13 Commercial 230 293 — 1,379 8 Home equity 124 305 — 195 — Consumer 6 13 — 1 — HPFC — — — — — Ending Balance 2,450 3,001 — 5,368 55 Total impaired loans $ 6,926 $ 7,477 $ 824 $ 11,289 $ 193 Loan Sales: For the three months ended September 30, 2019 and 2018, the Company sold $86.9 million and $58.4 million , respectively, of fixed rate residential mortgage loans on the secondary market, which resulted in gains on the sale of loans (net of costs) of $1.9 million and $1.5 million , respectively. For the nine months ended September 30, 2019 and 2018, the Company sold $164.5 million and $155.6 million , respectively, of fixed rate residential mortgage loans on the secondary market, which resulted in gains on the sale of loans (net of costs) of $3.9 million and $4.1 million , respectively. At September 30, 2019 and December 31, 2018 , the Company had certain residential mortgage loans with a principal balance of $16.6 million and $4.3 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 September 30, 2019 and December 31, 2018 , recorded an unrealized (loss) gain of ($181,000) and $89,000 , respectively. For the three months ended September 30, 2019 and 2018 , the net change in unrealized losses on loans held for sale recorded within mortgage banking income, net, on the Company's consolidated statements of income was $205,000 and $99,000 , respectively. For the nine months ended September 30, 2019 and 2018, the net change in unrealized losses on loans held for sale recorded within mortgage banking income, net, on the Company's consolidated statements of income was $269,000 and $67,000 , respectively. The Company has forward delivery commitments with a secondary market investor on each of its loans held for sale at September 30, 2019 and December 31, 2018. Refer to Note 8 for further discussion of the Company's forward delivery commitments. In-Process Foreclosure Proceedings: At September 30, 2019 and December 31, 2018 , the Company had $1.5 million and $2.3 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 $1.3 billion and $1.1 billion at September 30, 2019 and December 31, 2018 , respectively. Refer to Notes 3 and 7 of the consolidated financial statements for discussion of securities pledged as collateral. |
LEASES (Notes)
LEASES (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
LEASES | LEASES Effective January 1, 2019, the Company adopted the new lease accounting standard, ASU 2016-02, using the modified- retrospective method. As such, for reporting periods beginning on or after January 1, 2019, leases are recognized, presented and disclosed in accordance with ASU 2016-02, while periods prior to the adoption date were not adjusted and are reported in accordance with ASC 840, Leases ("ASC 840"). Refer to Note 2 for further details. The Company enters into noncancellable lease arrangements primarily for its office buildings and branches. Certain lease arrangements contain clauses requiring increasing rental payments over the lease term, which may be linked to an index (commonly the Consumer Price Index) or contractually stipulated. Many of these lease arrangements provide the Company with the option to renew the lease arrangement after the initial lease term. These options are included in determining the lease term used to establish the right-of-use assets and lease liabilities, when it is reasonably certain the Company will exercise its renewal option. As most of the Company's leases do not have a readily determinable implicit rate, the incremental borrowing rate is primarily used to determine the discount rate for purposes of measuring the right-of-use assets and lease liabilities. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. In connection with an acquisition, the Company assumed a lease arrangement with two of its employees. The lease is for a period of five years with an expiration date of December 1, 2019 with two consecutive five-year extension periods available at the option of the Company. The lease arrangement contains certain termination clauses whereby the Company has the right to terminate the lease arrangement. The following right-of-use assets and lease liabilities have been reported within other assets and other liabilities on the consolidated statements of condition for the period indicated: September 30, 2019 (In thousands) Balance Sheet Line Item Operating Leases Finance Leases Total Right-of-use assets Other Assets $ 13,015 $ 1,529 $ 14,544 Lease liabilities Other Liabilities 13,059 1,692 14,751 In accordance with ASC 842, the components of lease expense for the periods indicated were as follows: (In thousands) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Lease Cost: Operating lease cost (1) $ 379 $ 1,098 Finance lease cost: Amortization of right-of-use assets 28 83 Interest on lease liabilities (2) 17 51 Total finance lease cost 45 134 Total Lease Cost $ 424 $ 1,232 (1) Includes immaterial short-term and variable lease costs, but excludes common area maintenance costs. (2) Includes immaterial variable lease costs. In accordance with ASC 840, rent expense, excluding common area maintenance expense, for the three and nine months ended September 30, 2018 was $321,000 and $993,000 , respectively. Supplemental cash flow information and non-cash activity related to leases was as follows for the period indicated: (In thousands) Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,001 Operating cash flows from finance leases 51 Financing cash flows from finance leases 79 Right-of-use assets obtained in exchange for new lease obligations: Operating leases (1) $ 13,775 Finance leases (1) 1,612 (1) Reflects right-of-use assets recorded for the period indicated, including $10.5 million of operating leases and $1.6 million of finance leases recorded upon adoption of ASU 2016-02, as of January 1, 2019. Supplemental balance sheet information related to leases was as follows for the period indicated: September 30, 2019 Weighted average remaining lease term (years): Operating leases 16.1 years Finance leases 22.6 years Weighted average discount rate: Operating leases 3.40 % Finance leases 3.95 % The following summarizes the remaining scheduled future minimum lease payments for operating and finance leases as of September 30, 2019: (In thousands) Operating Leases Finance Leases 2019 $ 358 $ 44 2020 1,366 174 2021 1,289 174 2022 1,278 174 2023 1,239 174 Thereafter 11,543 2,095 Total minimum lease payments 17,073 2,835 Less: amount representing interest (1) 4,014 1,143 Present value of net minimum lease payments (2) $ 13,059 $ 1,692 (1) Amount necessary to reduce net minimum lease payments to present value calculated at the Company's incremental borrowing rate. (2) Reflects the liability reported within other liabilities on the consolidated statements of condition. As of September 30, 2019, the Company had executed a building lease that had not yet commenced in accordance with ASU 2016-02, for which it anticipates will commence in January 2020 upon completion of the landlord and Company's agreed-upon build-out. The Company anticipates that the lease will qualify as a finance lease and estimates it will record an associated lease liability of $3.4 million. The following summarizes expected future minimum lease payments, in accordance with ASC 840, as of December 31, 2018: (In thousands) Operating Capital 2019 $ 1,420 $ 179 2020 941 179 2021 726 182 2022 539 184 2023 434 184 Thereafter 1,268 1,592 Total minimum lease payments $ 5,328 2,500 Less: amount representing interest (1) 920 Present value of net minimum lease payments (2) $ 1,580 (1) Amount necessary to reduce net minimum lease payments to present value calculated at the Company's incremental borrowing rate at lease inception. (2) Reflects the liability reported within long-term borrowings on the consolidated statements of condition at December 31, 2018. |
LEASES | LEASES Effective January 1, 2019, the Company adopted the new lease accounting standard, ASU 2016-02, using the modified- retrospective method. As such, for reporting periods beginning on or after January 1, 2019, leases are recognized, presented and disclosed in accordance with ASU 2016-02, while periods prior to the adoption date were not adjusted and are reported in accordance with ASC 840, Leases ("ASC 840"). Refer to Note 2 for further details. The Company enters into noncancellable lease arrangements primarily for its office buildings and branches. Certain lease arrangements contain clauses requiring increasing rental payments over the lease term, which may be linked to an index (commonly the Consumer Price Index) or contractually stipulated. Many of these lease arrangements provide the Company with the option to renew the lease arrangement after the initial lease term. These options are included in determining the lease term used to establish the right-of-use assets and lease liabilities, when it is reasonably certain the Company will exercise its renewal option. As most of the Company's leases do not have a readily determinable implicit rate, the incremental borrowing rate is primarily used to determine the discount rate for purposes of measuring the right-of-use assets and lease liabilities. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. In connection with an acquisition, the Company assumed a lease arrangement with two of its employees. The lease is for a period of five years with an expiration date of December 1, 2019 with two consecutive five-year extension periods available at the option of the Company. The lease arrangement contains certain termination clauses whereby the Company has the right to terminate the lease arrangement. The following right-of-use assets and lease liabilities have been reported within other assets and other liabilities on the consolidated statements of condition for the period indicated: September 30, 2019 (In thousands) Balance Sheet Line Item Operating Leases Finance Leases Total Right-of-use assets Other Assets $ 13,015 $ 1,529 $ 14,544 Lease liabilities Other Liabilities 13,059 1,692 14,751 In accordance with ASC 842, the components of lease expense for the periods indicated were as follows: (In thousands) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Lease Cost: Operating lease cost (1) $ 379 $ 1,098 Finance lease cost: Amortization of right-of-use assets 28 83 Interest on lease liabilities (2) 17 51 Total finance lease cost 45 134 Total Lease Cost $ 424 $ 1,232 (1) Includes immaterial short-term and variable lease costs, but excludes common area maintenance costs. (2) Includes immaterial variable lease costs. In accordance with ASC 840, rent expense, excluding common area maintenance expense, for the three and nine months ended September 30, 2018 was $321,000 and $993,000 , respectively. Supplemental cash flow information and non-cash activity related to leases was as follows for the period indicated: (In thousands) Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,001 Operating cash flows from finance leases 51 Financing cash flows from finance leases 79 Right-of-use assets obtained in exchange for new lease obligations: Operating leases (1) $ 13,775 Finance leases (1) 1,612 (1) Reflects right-of-use assets recorded for the period indicated, including $10.5 million of operating leases and $1.6 million of finance leases recorded upon adoption of ASU 2016-02, as of January 1, 2019. Supplemental balance sheet information related to leases was as follows for the period indicated: September 30, 2019 Weighted average remaining lease term (years): Operating leases 16.1 years Finance leases 22.6 years Weighted average discount rate: Operating leases 3.40 % Finance leases 3.95 % The following summarizes the remaining scheduled future minimum lease payments for operating and finance leases as of September 30, 2019: (In thousands) Operating Leases Finance Leases 2019 $ 358 $ 44 2020 1,366 174 2021 1,289 174 2022 1,278 174 2023 1,239 174 Thereafter 11,543 2,095 Total minimum lease payments 17,073 2,835 Less: amount representing interest (1) 4,014 1,143 Present value of net minimum lease payments (2) $ 13,059 $ 1,692 (1) Amount necessary to reduce net minimum lease payments to present value calculated at the Company's incremental borrowing rate. (2) Reflects the liability reported within other liabilities on the consolidated statements of condition. As of September 30, 2019, the Company had executed a building lease that had not yet commenced in accordance with ASU 2016-02, for which it anticipates will commence in January 2020 upon completion of the landlord and Company's agreed-upon build-out. The Company anticipates that the lease will qualify as a finance lease and estimates it will record an associated lease liability of $3.4 million. The following summarizes expected future minimum lease payments, in accordance with ASC 840, as of December 31, 2018: (In thousands) Operating Capital 2019 $ 1,420 $ 179 2020 941 179 2021 726 182 2022 539 184 2023 434 184 Thereafter 1,268 1,592 Total minimum lease payments $ 5,328 2,500 Less: amount representing interest (1) 920 Present value of net minimum lease payments (2) $ 1,580 (1) Amount necessary to reduce net minimum lease payments to present value calculated at the Company's incremental borrowing rate at lease inception. (2) Reflects the liability reported within long-term borrowings on the consolidated statements of condition at December 31, 2018. |
BORROWINGS
BORROWINGS | 9 Months Ended |
Sep. 30, 2019 | |
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: (In thousands) September 30, December 31, 2018 Short-Term Borrowings: Customer repurchase agreements $ 273,454 $ 245,868 FHLBB borrowings — 25,000 Total short-term borrowings $ 273,454 $ 270,868 Long-Term Borrowings: FHLBB borrowings $ 10,000 $ 10,000 Capital lease obligation (1) — 1,580 Total long-term borrowings $ 10,000 $ 11,580 (1) Upon adoption of ASU 2016-02, effective January 1, 2019, lease liabilities are presented within other liabilities on the consolidated statements of condition. Refer to Notes 2 and 5 for further information. |
REPURCHASE AGREEMENTS
REPURCHASE AGREEMENTS | 9 Months Ended |
Sep. 30, 2019 | |
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 a 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 for the periods indicated: (In thousands) September 30, 2019 December 31, 2018 Customer Repurchase Agreements (1)(2) : Obligations of states and political subdivisions $ 1,642 $ 1,455 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 109,312 125,590 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 162,500 118,823 Total $ 273,454 $ 245,868 (1) Presented within short-term borrowings on the consolidated statements of condition. (2) All customer repurchase agreements mature continuously or overnight for the dates indicated. Certain customers held CDs totaling $1.0 million and $923,000 at September 30, 2019 and December 31, 2018 , 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. |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND DERIVATIVES | 9 Months Ended |
Sep. 30, 2019 | |
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 subsidiaries are subject to pending and threatened legal actions. Although the Company is not able to predict the outcome of such actions, after reviewing pending and threatened actions, and based on the information currently available, management believes that 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 September 30, 2019 and December 31, 2018 , the Company did no t have any material loss contingencies for which accruals were provided for and/or that were required to be disclosed. 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 off-balance sheet financial instruments: (In thousands) September 30, December 31, Lending-Related Instruments: Commitments to extend credit $ 755,731 $ 654,575 Standby letters of credit 5,776 3,063 Derivative Financial Instruments: Customer loan swaps $ 832,286 $ 833,030 Interest rate swap on loans 100,000 — Fixed-rate mortgage interest rate lock commitments 54,144 12,077 Junior subordinated debt interest rate swaps 43,000 43,000 Forward delivery commitments 16,630 4,315 FHLBB advance interest rate swaps — 25,000 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. Of the total commitments to extend credit, $275.1 million and $270.8 million were unconditionally cancellable by the Company at September 30, 2019 and December 31, 2018, respectively. Standby letters of credit are conditional commitments issued to guarantee the performance of a borrower to a third party. In the event of nonperformance by the borrower, the Company would be required to fund the commitment and would be entitled to the underlying collateral, if applicable, which generally consists of pledges of business assets including, but not limited to, accounts receivable, inventory, plant and equipment, and/or real estate. The maximum potential future payments are limited to the contractual amount of the commitment. 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 that will be held for sale as derivative instruments. 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 as a derivative upon execution of the mandatory delivery 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. At September 30, 2019, the Company designated its interest rate swaps on its junior subordinated debentures and its interest rate swap on loans as cash flow hedges. The change in the fair value for cash flow hedges is accounted for within AOCI, net of tax. Quarterly, in conjunction with financial reporting, each cash flow hedge is assessed for ineffectiveness. To the extent any significant ineffectiveness is identified, this amount is recorded within the consolidated statements of income. The gain or loss on the effective portion of the cash flow hedge is reclassified from AOCI into interest within the consolidated statements of income in the period the hedged transaction affects earnings. The change in fair value of 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 to provide them with a means to lock into a long-term fixed rate, while the Bank simultaneously enters into an arrangement with a counterparty to swap the fixed rate to a variable rate to manage its interest rate exposure effectively. 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 them 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 the counterparty for the dates indicated: (In thousands, except number of positions) September 30, 2019 December 31, 2018 Presentation on Consolidated Statements of Condition Number of Positions Notional Amount Fair Value Number of Positions Notional Amount Fair Value Receive fixed, pay variable Accrued interest and other liabilities 1 $ 1,146 $ (2 ) 57 $ 297,624 $ (7,841 ) Receive fixed, pay variable Other assets 84 414,997 24,260 25 118,891 3,467 Pay fixed, receive variable (Accrued interest and other liabilities) / other assets 85 416,143 (24,258 ) 82 416,515 4,374 Total 170 $ 832,286 $ — 164 $ 833,030 $ — 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 as necessary. The Bank's arrangement with its institutional counterparty requires it to post cash or other assets as collateral for its customer loan swap contracts in a net liability position based on their fair values and the Bank's credit rating or receive cash collateral for contracts in a net asset position as requested. At September 30, 2019 , the Bank posted $26.2 million of cash to the counterparty as collateral on its customer loan swap contracts which was presented within other assets on the consolidated statements of condition. At December 31, 2018, the counterparty posted $5.1 million of cash to the Bank as collateral on its customer loan swap contracts which was presented within interest-bearing deposits in other banks on the consolidated statements of condition. Refer to Note 9 for further discussion of master netting arrangements and presentation within the Company's consolidated financial statements. Interest Rate Swap on Loans: On June 12, 2019, the Bank entered into a $100.0 million interest rate swap contract with a counterparty to manage interest rate risk associated with its variable-rate loans. The Company has entered into a master netting arrangement with the counterparty and settles payments monthly on a net basis. The Bank's arrangement with the counterparty requires it to post collateral for its interest rate swap on loans when it is in a net liability position based on its fair value. If the interest rate swap is in a net asset position based on its fair value, the counterparty will post collateral to the Bank as requested. At September 30, 2019, the counterparty posted $1.5 million of cash to the Bank as collateral on its interest rate swap, which was presented within interest-bearing deposits in other banks as restricted cash on the Company's consolidated statements of condition. Refer to Note 9 for further discussion of master netting arrangements and presentation within the Company's consolidated financial statements. The details of the interest rate swap for the date indicated were as follows: (Dollars in thousands) September 30, 2019 Trade Maturity Date Variable Index Fixed Rate Presentation on Consolidated Statements of Condition Notional Fair Value 6/12/2019 6/10/2024 1-Month USD LIBOR 1.693% Other assets $ 100,000 $ 1,507 For the three and nine months ended September 30, 2019, the Company did not record any ineffectiveness within the consolidated statements of income. Net payments paid to the counterparty for the nine months ended September 30, 2019 were $176,000 and were classified as cash flows from operating activities in the Company's consolidated statements of cash flows. Fixed-Rate Mortgage Interest Rate Lock 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 it intends to sell the loan upon origination was as follows for the dates indicated: September 30, 2019 December 31, 2018 (In thousands) Presentation on Consolidated Statements of Condition Notional Amount Fair Value Notional Amount Fair Value Fixed-rate mortgage interest rate locks Other assets $ 50,291 $ 968 $ 8,239 $ 95 Fixed-rate mortgage interest rate locks Accrued interest and other liabilities 3,853 (30 ) 3,838 (28 ) Total $ 54,144 $ 938 $ 12,077 $ 67 For the three months ended September 30, 2019 and 2018, the net unrealized gain 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 was $467,000 and $46,000 , respectively. For the nine months ended September 30, 2019 and 2018, the net unrealized gain 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 was $871,000 and $38,000 , respectively. Junior Subordinated Debt Interest Rate Swaps: The Company entered into five interest rate swap agreements with a counterparty to manage interest rate risk associated with the Company's variable rate borrowings. Each interest rate swap was designated as a cash flow hedge. The Company 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 September 30, 2019 and December 31, 2018, the Company posted $10.1 million and $5.8 million , respectively, of cash as collateral to the counterparty, which was presented within other assets on the consolidated statements of financial condition. Refer to Note 9 for further discussion of master netting arrangements and presentation within the Company's consolidated financial statements. The details of the junior subordinated debt interest rate swaps for the dates indicated were as follows: (Dollars in thousands) September 30, 2019 December 31, 2018 Trade Maturity Variable Index Fixed Rate Presentation on Consolidated Statements of Condition Notional Amount Fair Value Notional Amount Fair Value 3/18/2009 6/30/2021 3-Month USD LIBOR 5.09% Accrued interest and other liabilities $ 10,000 $ (357 ) $ 10,000 $ (272 ) 7/8/2009 6/30/2029 3-Month USD LIBOR 5.84% Accrued interest and other liabilities 10,000 (2,688 ) 10,000 (1,655 ) 5/6/2010 6/30/2030 3-Month USD LIBOR 5.71% Accrued interest and other liabilities 10,000 (2,792 ) 10,000 (1,636 ) 3/14/2011 3/30/2031 3-Month USD LIBOR 4.35% Accrued interest and other liabilities 5,000 (1,501 ) 5,000 (877 ) 5/4/2011 7/7/2031 3-Month USD LIBOR 4.14% Accrued interest and other liabilities 8,000 (2,264 ) 8,000 (1,242 ) $ 43,000 $ (9,602 ) $ 43,000 $ (5,682 ) For the three and nine months ended September 30, 2019 and 2018, 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 nine months ended September 30, 2019 and 2018 were $518,000 and $689,000 , respectively, and were classified as cash flows from operating activities in the Company's consolidated statements of cash flows. 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 typically to 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 it as a hedge) upon origination of a loan identified as held for sale. The Company's forward delivery commitments on loans held for sale for the dates indicated were as follows: September 30, 2019 December 31, 2018 (In thousands) Balance Sheet Location Notional Fair Value Notional Fair Value Forward delivery commitments ("best effort") Other Assets $ 15,201 $ 501 $ 2,593 $ 32 Forward delivery commitments ("best effort") Accrued interest and other liabilities 1,429 (6 ) 1,722 (17 ) Total $ 16,630 $ 495 $ 4,315 $ 15 For the three months ended September 30, 2019 and 2018, the net unrealized gain 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 was $238,000 and $49,000 , respectively. For the nine months ended September 30, 2019 and 2018, the net unrealized gain 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 was $480,000 and $99,000 , respectively. 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. On February 25, 2019, the last $25.0 million tranche matured. The details of the Company's FHLBB advance interest rate swaps for the dates indicated were as follows: (Dollars in thousands) September 30, 2019 December 31, 2018 Trade Maturity Date Variable Index Fixed Rate Presentation on Consolidated Statements of Condition Notional Fair Value Notional Fair Value 2/25/2015 2/25/2019 1-Month USD LIBOR 1.74% Other assets $ — $ — $ 25,000 $ 30 Net payments received from the counterparty for the nine months ended September 30, 2019 and 2018 were $32,000 and $24,000 , respectively, and were classified as cash flows from operating activities in the consolidated statements of cash flows. 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 September 30, For The (In thousands) 2019 2018 2019 2018 Derivatives designated as cash flow hedges: Effective portion of unrealized (losses) gains recognized within OCI during the period, net of tax $ (310 ) $ 462 $ (2,438 ) $ 2,031 Net reclassification adjustment for effective portion of cash flow hedges included in interest expense, gross $ 342 $ 177 $ 662 $ 665 The Company expects approximately $895,000 (pre-tax) to be reclassified to interest expense from AOCI, related to the Company’s cash flow hedges, in the next 12 months. This reclassification is due to anticipated payments that will be made on the swaps based upon the forward curve as of September 30, 2019 . |
BALANCE SHEET OFFSETTING (Notes
BALANCE SHEET OFFSETTING (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Offsetting [Abstract] | |
Balance Sheet Offsetting | BALANCE SHEET OFSETTING The Company does not offset the carrying value for derivative instruments or repurchase agreements on the consolidated statements of condition. The Company and Bank do net the amount recognized for the right to reclaim cash collateral against the obligation to return cash collateral arising from instruments executed with the same counterparty under a master netting arrangement. Collateral legally required to be pledged or received is monitored and adjusted as necessary. Refer to Note 7 for further discussion of repurchase agreements and Note 8 for further discussion of derivative instruments. The following table presents the Company's derivative positions and repurchase agreements, and the potential effect of netting arrangements on its financial position, as of the dates indicated: Gross Amount Not Offset in the Consolidated Statements of Condition (In thousands) Gross Amount Recognized in the Consolidated Statements of Condition Gross Amount Offset in the Consolidated Statements of Condition Net Amount Presented in the Consolidated Statements of Condition Financial Instruments Pledged (Received) (1) Cash Collateral Pledged (Received) (1) Net Amount September 30, 2019 Derivative assets: Customer loan swaps - commercial customer $ 24,260 $ — $ 24,260 $ — $ — $ 24,260 Interest rate swap 1,507 — 1,507 — (1,507 ) — Total $ 25,767 $ — $ 25,767 $ — $ (1,507 ) $ 24,260 Derivative liabilities: Customer loan swaps - dealer bank $ 24,258 $ — $ 24,258 $ — $ 24,258 — Junior subordinated debt interest rate swaps 9,602 — 9,602 — 9,602 — Customer loan swaps - commercial customer 2 — 2 — — 2 Total $ 33,862 $ — $ 33,862 $ — $ 33,860 $ 2 Customer repurchase agreements $ 273,454 $ — $ 273,454 $ 273,454 $ — $ — December 31, 2018 Derivative assets: Customer loan swaps - dealer bank $ 4,374 $ — $ 4,374 $ — $ (4,374 ) $ — Customer loan swaps - commercial customer 3,467 — 3,467 — — 3,467 FHLBB advance interest rate swaps 30 — 30 — (30 ) — Total $ 7,871 $ — $ 7,871 $ — $ (4,404 ) $ 3,467 Derivative liabilities: Junior subordinated debt interest rate swaps $ 5,682 $ — $ 5,682 $ — $ 5,682 $ — Customer loan swaps - commercial customer 7,841 — 7,841 — — 7,841 Total $ 13,523 $ — $ 13,523 $ — $ 5,682 $ 7,841 Customer repurchase agreements $ 245,868 $ — $ 245,868 $ 245,868 $ — $ — (1) The amount presented was the lesser of the amount pledged (received) or the net amount presented in the consolidated statements of condition. |
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS | 9 Months Ended |
Sep. 30, 2019 | |
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 capital, Tier I capital, and common equity Tier I capital 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 capital conservation buffer consisting of common Tier I equity, subject to a transition schedule that was fully phased in on January 1, 2019. Effective January 1, 2019, the Company and the Bank were required to establish a capital conservation buffer of 2.50% , 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 September 30, 2019 and December 31, 2018 , and the Bank's capital ratios met the requirements for the Bank to be considered "well capitalized" under prompt corrective action provisions for each period. There were no changes to the Company or Bank's capital ratios that occurred subsequent to September 30, 2019, 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: September 30, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer Minimum Regulatory Provision To Be "Well Capitalized" Under Prompt Corrective Action Provisions December 31, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer Minimum Regulatory Provision To Be "Well Capitalized" Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Camden National Corporation: Total risk-based capital ratio $ 448,712 13.97 % 10.50 % N/A $ 434,331 14.36 % 9.875 % N/A Tier I risk-based capital ratio 408,014 12.70 % 8.50 % N/A 394,597 13.04 % 7.875 % N/A Common equity Tier I risk-based capital ratio 365,014 11.36 % 7.00 % N/A 351,597 11.62 % 6.375 % N/A Tier I leverage capital ratio 408,014 9.39 % 4.00 % N/A 394,597 9.53 % 4.00 % N/A Camden National Bank: Total risk-based capital ratio $ 415,786 12.96 % 10.50 % 10.00 % $ 398,773 13.18 % 9.875 % 10.00 % Tier I risk-based capital ratio 390,088 12.16 % 8.50 % 8.00 % 374,039 12.36 % 7.875 % 8.00 % Common equity Tier I risk-based capital ratio 390,088 12.16 % 7.00 % 6.50 % 374,039 12.36 % 6.375 % 6.50 % Tier I leverage capital ratio 390,088 9.01 % 4.00 % 5.00 % 374,039 9.06 % 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 September 30, 2019 and December 31, 2018 , $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 September 30, 2019 and December 31, 2018 , $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 differences in regulatory risk-weighting 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. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [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 September 30, 2019 and 2018 , were as follows: Supplemental Executive Retirement Plan: (In thousands) Three Months Ended Nine Months Ended Net periodic pension cost Income Statement Presentation 2019 2018 2019 2018 Service cost Salaries and employee benefits $ 98 $ 112 $ 296 $ 335 Interest cost Other expenses 131 122 392 366 Recognized net actuarial loss Other expenses 61 140 183 420 Total $ 290 $ 374 $ 871 $ 1,121 Other Postretirement Benefit Plan: (In thousands) Three Months Ended Nine Months Ended Net periodic postretirement benefit cost Income Statement Presentation 2019 2018 2019 2018 Service cost Salaries and employee benefits $ 12 $ 12 $ 36 $ 35 Interest cost Other expenses 37 33 111 99 Recognized net actuarial loss Other expenses 7 12 19 39 Amortization of prior service credit Other expenses (6 ) (6 ) (18 ) (18 ) Total $ 50 $ 51 $ 148 $ 155 |
EPS
EPS | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EPS The following is an analysis of basic and diluted EPS, reflecting the application of the two-class method, as described below: Three Months Ended Nine Months Ended (In thousands, except number of shares and per share data) 2019 2018 2019 2018 Net income $ 14,488 $ 14,057 $ 41,965 $ 39,094 Dividends and undistributed earnings allocated to participating securities (1) (33 ) (39 ) (86 ) (110 ) Net income available to common shareholders $ 14,455 $ 14,018 $ 41,879 $ 38,984 Weighted-average common shares outstanding for basic EPS 15,339,093 15,580,782 15,482,765 15,565,355 Dilutive effect of stock-based awards (2) 42,835 58,204 39,736 56,045 Weighted-average common and potential common shares for diluted EPS 15,381,928 15,638,986 15,522,501 15,621,400 Earnings per common share: Basic EPS $ 0.94 $ 0.90 $ 2.70 $ 2.50 Diluted EPS $ 0.94 $ 0.90 $ 2.70 $ 2.50 (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 and vesting of restricted shares and restricted stock units utilizing the treasury stock method. Not included are the unvested LTIP awards, which are the Company's performance-based awards. For the three and nine months ended September 30, 2019 and 2018, there were no anti-dilutive stock based awards that have been excluded from the computation of potential common shares for purposes of calculating diluted EPS, because 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. |
FAIR VALUE MEASUREMENT AND DISC
FAIR VALUE MEASUREMENT AND DISCLOSURE | 9 Months Ended |
Sep. 30, 2019 | |
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 is 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. These equity securities are traded on inactive markets and are classified as Level 2. Derivatives : The fair value of the Company's interest rate swaps is determined using inputs that are observable in the market place obtained from third parties including yield curves, publicly available volatilities, and floating indexes and, accordingly, are classified as Level 2 inputs. The credit value adjustments associated with derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. As of September 30, 2019 and December 31, 2018, 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 were 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 although the Company's internal pull-through rate estimate is a Level 3 estimate, it is less significant 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, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value, for the dates indicated: (In thousands) Fair Value Readily Available Market Prices (Level 1) Observable Market Data (Level 2) Company Determined Fair Value (Level 3) September 30, 2019 Financial assets: Loans held for sale $ 16,449 $ — $ 16,449 $ — AFS investments: Obligations of states and political subdivisions 111,999 — 111,999 — Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 454,073 — 454,073 — Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 337,716 — 337,716 — Subordinated corporate bonds 9,735 — 9,735 — Equity securities - bank stock 808 — 808 — Customer loan swaps 24,260 — 24,260 — Interest rate swap on loans 1,507 — 1,507 — Fixed-rate mortgage interest rate lock commitments 968 — 968 — Forward delivery commitments 501 — 501 — Financial liabilities: Junior subordinated debt interest rate swaps 9,602 — 9,602 — Customer loan swaps 24,260 — 24,260 — Fixed-rate mortgage interest rate lock commitments 30 — 30 — Forward delivery commitments 6 — 6 — December 31, 2018 Financial assets: Loans held for sale $ 4,403 $ — $ 4,403 $ — AFS investments: Obligations of states and political subdivisions 93,752 — 93,752 — Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 453,672 — 453,672 — Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 342,894 — 342,894 — Subordinated corporate bonds 20,374 — 20,374 — Equity securities - bank stock 746 — 746 — Customer loan swaps 7,841 — 7,841 — Fixed-rate mortgage interest rate lock commitments 95 — 95 — Forward delivery commitments 32 — 32 — FHLBB advance interest rate swaps 30 — 30 — Financial liabilities: Junior subordinated debt interest rate swaps 5,682 — 5,682 — Customer loan swaps 7,841 — 7,841 — Fixed-rate mortgage interest rate lock commitments 28 — 28 — Forward delivery commitments 17 — 17 — The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during the nine months ended September 30, 2019 . The Company’s policy for determining transfers between levels occurs at the end of the reporting period when circumstances in the underlying valuation criteria change and result in transfer between levels. Financial Instruments Recorded at Fair Value on a Nonrecurring Basis The Company may be required, from time to time, to measure certain financial assets and financial liabilities at fair value on a nonrecurring basis in accordance with GAAP. These include assets that are measured at the lower of cost or market value that were recognized at fair value below cost at the end of the period. Collateral-Dependent Impaired Loans : Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. The Company's policy is to evaluate individually for impairment loans with a principal balance of $500,000 or more, that are classified as substandard or doubtful and are on non-accrual status. Once the population of loans is identified for individual impairment assessment, the Company measures these loans for impairment by comparing 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, namely loan prepayment assumptions and the discount rate used, to calculate the fair value of each tranche, and, as such, the Company has classified the model within Level 3 of the fair value hierarchy. At September 30, 2019 and December 31, 2018, 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 the nine months ended September 30, 2019 , 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 their carrying value to the expected undiscounted cash flows of the assets. If the undiscounted cash flows of the intangible assets exceed their 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 their 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 nine months ended September 30, 2019 , 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 for the dates indicated: (In thousands) Fair Value Readily Available Market Prices (Level 1) Observable Market Data (Level 2) Company Determined Fair Value (Level 3) September 30, 2019 Financial assets: Collateral-dependent impaired loans $ 485 $ — $ — $ 485 Non-financial assets: OREO 94 — — 94 December 31, 2018 Financial assets: Collateral-dependent impaired loans $ 522 $ — $ — $ 522 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 for the dates indicated: (Dollars in thousands) Fair Value Valuation Methodology Unobservable input Discount Range (Weighted-Average) September 30, 2019 Collateral-dependent impaired loans: Partially charged-off $ 485 Market approach appraisal of collateral Management adjustment of appraisal 0% (0%) Estimated selling costs 10% (10%) OREO $ 94 Market approach appraisal of collateral Management adjustment of appraisal 18% (18%) Estimated selling cost 13% (13%) December 31, 2018 Collateral-dependent impaired loans: Partially charged-off $ 50 Market approach appraisal of collateral Management adjustment 0% (0%) Estimated selling costs 10% (10%) Specifically reserved $ 472 Market approach appraisal of collateral Management adjustment 0% (0%) Estimated selling costs 10% (10%) OREO $ 130 Market approach appraisal of collateral Management adjustment of appraisal 19% (19%) Estimated selling cost 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 dates indicated: (In thousands) Carrying Amount Fair Value Readily Available Market Prices (Level 1) Observable Market Prices (Level 2) Company Determined Market Prices (Level 3) September 30, 2019 Financial assets: HTM securities $ 1,303 $ 1,352 $ — $ 1,352 $ — Residential real estate loans (1) 1,055,676 1,054,019 — — 1,054,019 Commercial real estate loans (1) 1,243,443 1,210,699 — — 1,210,699 Commercial loans (1)(2) 441,125 430,900 — — 430,900 Home equity loans (1) 320,788 311,905 — — 311,905 Consumer loans (1) 23,914 22,161 — — 22,161 Servicing assets 807 1,380 — — 1,380 Financial liabilities: Time deposits $ 652,334 $ 651,741 $ — $ 651,741 $ — Short-term borrowings 273,454 273,215 — 273,215 — Long-term borrowings 10,000 9,991 — 9,991 — Subordinated debentures 59,005 49,728 — 49,728 — December 31, 2018 Financial assets: HTM securities $ 1,307 $ 1,291 $ — $ 1,291 $ — Residential real estate loans (1) 986,795 957,957 — — 957,957 Commercial real estate loans (1) 1,257,879 1,218,436 — — 1,218,436 Commercial loans (1)(2) 411,479 404,805 — — 404,805 Home equity loans (1) 324,967 317,359 — — 317,359 Consumer loans (1) 20,390 18,969 — — 18,969 Servicing assets 831 1,677 — — 1,677 Financial liabilities: Time deposits $ 661,281 $ 654,954 $ — $ 654,954 $ — Short-term borrowings 270,868 270,598 — 270,598 — Long-term borrowings 11,580 11,573 — 11,573 — Subordinated debentures 59,067 49,060 — 49,060 — (1) The presented carrying amount is net of the allocated ALL. (2) Includes the HPFC loan portfolio. Excluded from the summary were 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. |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Costs and Estimated Fair Values of Available-For-Sale Securities | 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: (In thousands) Cost Unrealized Gains Unrealized Losses Fair Value / Carrying Value September 30, 2019 Equity securities - bank stock (carried at fair value) $ 544 $ 264 $ — $ 808 FHLBB (carried at cost) 5,436 — — 5,436 FRB (carried at cost) 5,374 — — 5,374 Total other investments $ 11,354 $ 264 $ — $ 11,618 December 31, 2018 Equity securities - bank stock (carried at fair value) $ 544 $ 202 $ — $ 746 FHLBB (carried at cost) 8,559 — — 8,559 FRB (carried at cost) 5,374 — — 5,374 Total other investments $ 14,477 $ 202 $ — $ 14,679 The following table summarizes the amortized cost and estimated fair values of AFS and HTM investments, as of the dates indicated: (In thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value September 30, 2019 AFS Investments (carried at fair value): Obligations of states and political subdivisions $ 109,519 $ 2,649 $ (169 ) $ 111,999 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 449,112 5,799 (838 ) 454,073 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 335,797 3,653 (1,734 ) 337,716 Subordinated corporate bonds 9,560 175 — 9,735 Total AFS investments $ 903,988 $ 12,276 $ (2,741 ) $ 913,523 HTM Investments (carried at amortized cost): Obligations of states and political subdivisions $ 1,303 $ 49 $ — $ 1,352 Total HTM investments $ 1,303 $ 49 $ — $ 1,352 December 31, 2018 AFS Investments (carried at fair value): Obligations of states and political subdivisions $ 94,430 $ 216 $ (894 ) $ 93,752 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 466,613 583 (13,524 ) 453,672 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 351,958 1,007 (10,071 ) 342,894 Subordinated corporate bonds 20,398 23 (47 ) 20,374 Total AFS investments $ 933,399 $ 1,829 $ (24,536 ) $ 910,692 HTM Investments (carried at amortized cost): Obligations of states and political subdivisions $ 1,307 $ 8 $ (24 ) $ 1,291 Total HTM investments $ 1,307 $ 8 $ (24 ) $ 1,291 |
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 that was considered temporary, by length of time that an individual security in each category has been in a continuous loss position as of the dates indicated: Less Than 12 Months 12 Months or More Total (In thousands, except number of holdings) Number of Holdings Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses September 30, 2019 AFS Investments: Obligations of states and political subdivisions 9 $ 24,439 $ (169 ) $ — $ — $ 24,439 $ (169 ) Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 40 36,108 (50 ) 86,109 (788 ) 122,217 (838 ) Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 29 34,972 (85 ) 73,709 (1,649 ) 108,681 (1,734 ) Total AFS investments 78 $ 95,519 $ (304 ) $ 159,818 $ (2,437 ) $ 255,337 $ (2,741 ) December 31, 2018 AFS Investments: Obligations of states and political subdivisions 114 $ 36,218 $ (281 ) $ 28,437 $ (613 ) $ 64,655 $ (894 ) Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 117 46,459 (252 ) 364,430 (13,272 ) 410,889 (13,524 ) Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 63 5,956 (40 ) 227,461 (10,031 ) 233,417 (10,071 ) Subordinated corporate bonds 6 11,378 (26 ) 966 (21 ) 12,344 (47 ) Total AFS investments 300 $ 100,011 $ (599 ) $ 621,294 $ (23,937 ) $ 721,305 $ (24,536 ) HTM Investments: Obligations of states and political subdivisions 2 $ 509 $ (5 ) $ 411 $ (19 ) $ 920 $ (24 ) Total HTM investments 2 $ 509 $ (5 ) $ 411 $ (19 ) $ 920 $ (24 ) |
Schedule of Sale of AFS Investments | The following table details the Company's sales of AFS investments for the periods indicated below: Three Months Ended Nine Months Ended (In thousands) 2019 2018 2019 2018 Proceeds from sales of investments (1) $ 97,042 $ 22,830 $ 142,868 $ 32,728 Gross realized gains 1,015 — 1,386 31 Gross realized losses (1,014 ) (275 ) (1,358 ) (275 ) |
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 September 30, 2019 , 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. (In thousands) Amortized Cost Fair Value AFS Investments Due in one year or less $ — $ — Due after one year through five years 82,995 83,568 Due after five years through ten years 186,981 189,976 Due after ten years 634,012 639,979 $ 903,988 $ 913,523 HTM Investments Due in one year or less $ — $ — Due after one year through five years — — Due after five years through ten years 1,303 1,352 Due after ten years — — $ 1,303 $ 1,352 |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Financing Receivable, Modifications [Line Items] | |
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | The following represents loan modifications that qualify as TDRs that occurred for the periods indicated: (In thousands, except number of contracts) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Specific Reserve 2019 2018 2019 2018 2019 2018 2019 2018 For the three months ended Residential real estate: Interest rate and maturity concession — 1 $ — $ 68 $ — $ 68 $ — $ 12 Payment deferral — 1 — 166 — 166 — 45 Total — 2 $ — $ 234 $ — $ 234 $ — $ 57 For the nine months ended Residential real estate: Interest rate and maturity concession — 2 $ — $ 231 $ — $ 254 $ — $ 51 Payment deferral — 1 — 166 — 166 — 45 Total — 3 $ — $ 397 $ — $ 420 $ — $ 96 |
Composition of Loan Portfolio, Excluding Residential Loans Held for Sale | The composition of the Company’s loan portfolio, excluding residential loans held for sale, was as follows for the dates indicated: (In thousands) September 30, December 31, Residential real estate $ 1,061,898 $ 992,866 Commercial real estate 1,255,519 1,269,533 Commercial 421,754 381,780 Home equity 323,564 327,763 Consumer 24,187 20,624 HPFC 23,712 33,656 Total loans $ 3,110,634 $ 3,026,222 |
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 for the dates indicated: (In thousands) September 30, December 31, Net unamortized fair value mark discount on acquired loans $ 2,887 $ 3,936 Net unamortized loan origination costs (2,936 ) (1,865 ) Total $ (49 ) $ 2,071 |
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 periods indicated: (In thousands) Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer HPFC Total For The Three and Nine Months Ended September 30, 2019 ALL for the three months ended: Beginning balance $ 6,249 $ 12,152 $ 4,107 $ 2,992 $ 383 $ 280 $ 26,163 Loans charged off (411 ) (92 ) (183 ) (348 ) (258 ) (11 ) (1,303 ) Recoveries 2 34 56 — 3 — 95 Provision (credit) (1) 382 (18 ) 124 132 145 (32 ) 733 Ending balance $ 6,222 $ 12,076 $ 4,104 $ 2,776 $ 273 $ 237 $ 25,688 ALL for the nine months ended: Beginning balance $ 6,071 $ 11,654 $ 3,620 $ 2,796 $ 234 $ 337 $ 24,712 Loans charged off (436 ) (157 ) (636 ) (392 ) (278 ) (11 ) (1,910 ) Recoveries 6 41 167 — 14 — 228 Provision (credit) (1) 581 538 953 372 303 (89 ) 2,658 Ending balance $ 6,222 $ 12,076 $ 4,104 $ 2,776 $ 273 $ 237 $ 25,688 ALL balance attributable to loans: Individually evaluated for impairment $ 337 $ 29 $ 303 $ 69 $ — $ — $ 738 Collectively evaluated for impairment 5,885 12,047 3,801 2,707 273 237 24,950 Total ending ALL $ 6,222 $ 12,076 $ 4,104 $ 2,776 $ 273 $ 237 $ 25,688 Loans: Individually evaluated for impairment $ 3,880 $ 406 $ 646 $ 585 $ — $ — $ 5,517 Collectively evaluated for impairment 1,058,018 1,255,113 421,108 322,979 24,187 23,712 3,105,117 Total ending loans balance $ 1,061,898 $ 1,255,519 $ 421,754 $ 323,564 $ 24,187 $ 23,712 $ 3,110,634 For The Three and Nine Months Ended September 30, 2018 ALL for the three months ended: Beginning balance $ 5,779 $ 10,310 $ 4,303 $ 2,616 $ 260 $ 400 $ 23,668 Loans charged off (115 ) — (150 ) (157 ) (28 ) (209 ) (659 ) Recoveries 37 4 117 — 3 1 162 Provision (credit) (1) 59 268 (302 ) 116 38 176 355 Ending balance $ 5,760 $ 10,582 $ 3,968 $ 2,575 $ 273 $ 368 $ 23,526 ALL for the nine months ended: Beginning balance $ 5,086 $ 11,863 $ 4,171 $ 2,367 $ 233 $ 451 $ 24,171 Loans charged off (231 ) (512 ) (448 ) (381 ) (70 ) (209 ) (1,851 ) Recoveries 52 19 237 44 8 1 361 Provision (credit) (1) 853 (788 ) 8 545 102 125 845 Ending balance $ 5,760 $ 10,582 $ 3,968 $ 2,575 $ 273 $ 368 $ 23,526 ALL balance attributable to loans: Individually evaluated for impairment $ 619 $ 23 $ — $ 114 $ — $ — $ 756 Collectively evaluated for impairment 5,141 10,559 3,968 2,461 273 368 22,770 Total ending ALL $ 5,760 $ 10,582 $ 3,968 $ 2,575 $ 273 $ 368 $ 23,526 Loans: Individually evaluated for impairment $ 5,184 $ 5,007 $ 1,548 $ 373 $ — $ — $ 12,112 Collectively evaluated for impairment 936,304 1,210,972 367,289 325,079 20,258 36,829 2,896,731 Total ending loans balance $ 941,488 $ 1,215,979 $ 368,837 $ 325,452 $ 20,258 $ 36,829 $ 2,908,843 (In thousands) Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer HPFC Total For The Year Ended December 31, 2018 ALL: Beginning balance $ 5,086 $ 11,863 $ 4,171 $ 2,367 $ 233 $ 451 $ 24,171 Loans charged off (173 ) (512 ) (736 ) (476 ) (96 ) (255 ) (2,248 ) Recoveries 90 28 1,770 44 11 1 1,944 Provision (credit) (1) 1,068 275 (1,585 ) 861 86 140 845 Ending balance $ 6,071 $ 11,654 $ 3,620 $ 2,796 $ 234 $ 337 $ 24,712 ALL balance attributable to loans: Individually evaluated for impairment $ 586 $ 23 $ 53 $ 162 $ — $ — $ 824 Collectively evaluated for impairment 5,485 11,631 3,567 2,634 234 337 23,888 Total ending ALL $ 6,071 $ 11,654 $ 3,620 $ 2,796 $ 234 $ 337 $ 24,712 Loans: Individually evaluated for impairment $ 4,762 $ 930 $ 786 $ 442 $ 6 $ — $ 6,926 Collectively evaluated for impairment 988,104 1,268,603 380,994 327,321 20,618 33,656 3,019,296 Total ending loans balance $ 992,866 $ 1,269,533 $ 381,780 $ 327,763 $ 20,624 $ 33,656 $ 3,026,222 (1) The provision (credit) for loan losses excludes any impact for the change in the reserve for unfunded commitments, which represents management's estimate of the amount required to reflect the probable inherent losses on outstanding letters of credit and unused lines of credit. The reserve for unfunded commitments is presented within accrued interest and other liabilities on the consolidated statements of condition. At September 30, 2019 and 2018, and December 31, 2018 , the reserve for unfunded commitments was $11,000 , $15,000 and $22,000 , respectively. |
Schedule of Provision for Credit Losses | The following reconciles the provision for loan losses to the provision for credit losses as presented on the consolidated statements of income for the periods indicated: Three Months Ended Nine Months Ended Year Ended December 31, 2018 (In thousands) 2019 2018 2019 2018 Provision for loan losses $ 733 $ 355 $ 2,658 $ 845 $ 845 Change in reserve for unfunded commitments (3 ) (1 ) (11 ) (5 ) 2 Provision for credit losses $ 730 $ 354 $ 2,647 $ 840 $ 847 |
Credit Risk Exposure Indicators by Portfolio Segment | The following summarizes credit risk exposure indicators by portfolio segment as of the following dates: (In thousands) Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer HPFC Total September 30, 2019 Pass (Grades 1-6) $ 1,053,013 $ 1,224,231 $ 416,591 $ — $ — $ 22,675 $ 2,716,510 Performing — — — 320,961 24,180 — 345,141 Special Mention (Grade 7) 477 17,047 2,591 — — 90 20,205 Substandard (Grade 8) 8,408 14,241 2,572 — — 947 26,168 Non-performing — — — 2,603 7 — 2,610 Total $ 1,061,898 $ 1,255,519 $ 421,754 $ 323,564 $ 24,187 $ 23,712 $ 3,110,634 December 31, 2018 Pass (Grades 1-6) $ 983,086 $ 1,247,190 $ 374,429 $ — $ — $ 32,261 $ 2,636,966 Performing — — — 325,917 20,595 — 346,512 Special Mention (Grade 7) 887 7,921 3,688 — — 123 12,619 Substandard (Grade 8) 8,893 14,422 3,663 — — 1,272 28,250 Non-performing — — — 1,846 29 — 1,875 Total $ 992,866 $ 1,269,533 $ 381,780 $ 327,763 $ 20,624 $ 33,656 $ 3,026,222 |
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: (In thousands) 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Outstanding Loans > 90 Days Past Due and Accruing Non-Accrual Loans September 30, 2019 Residential real estate $ 1,200 $ 578 $ 3,529 $ 5,307 $ 1,056,591 $ 1,061,898 $ — $ 5,152 Commercial real estate 637 1,606 704 2,947 1,252,572 1,255,519 — 1,156 Commercial 280 855 735 1,870 419,884 421,754 — 751 Home equity 917 86 2,004 3,007 320,557 323,564 — 2,609 Consumer 65 19 6 90 24,097 24,187 — 7 HPFC 30 163 370 563 23,149 23,712 — 450 Total $ 3,129 $ 3,307 $ 7,348 $ 13,784 $ 3,096,850 $ 3,110,634 $ — $ 10,125 December 31, 2018 Residential real estate $ 3,300 $ 2,046 $ 4,520 $ 9,866 $ 983,000 $ 992,866 $ — $ 5,492 Commercial real estate 1,794 369 1,108 3,271 1,266,262 1,269,533 — 1,380 Commercial 150 19 799 968 380,812 381,780 — 1,279 Home equity 907 607 1,476 2,990 324,773 327,763 — 1,846 Consumer 67 15 29 111 20,513 20,624 14 15 HPFC — 183 423 606 33,050 33,656 — 518 Total $ 6,218 $ 3,239 $ 8,355 $ 17,812 $ 3,008,410 $ 3,026,222 $ 14 $ 10,530 |
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 dates indicated: Number of Contracts Recorded Investment Specific Reserve (In thousands, except number of contracts) September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Residential real estate 21 25 $ 3,095 $ 3,614 $ 337 $ 443 Commercial real estate 2 2 341 347 29 23 Commercial 2 2 128 141 — — Home equity 1 2 299 304 69 162 Total 26 31 $ 3,863 $ 4,406 $ 435 $ 628 |
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 periods indicated: For the Three Months Ended For the Nine Months Ended (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Interest September 30, 2019: With an allowance recorded: Residential real estate $ 2,337 $ 2,337 $ 337 $ 3,026 $ 28 $ 3,137 $ 84 Commercial real estate 130 130 29 130 3 130 9 Commercial 442 442 303 301 — 365 — Home equity 318 318 69 658 — 573 — Consumer — — — — — — — HPFC — — — — — — — Ending balance 3,227 3,227 738 4,115 31 4,205 93 Without an allowance recorded: Residential real estate 1,543 2,007 — 1,337 11 1,325 28 Commercial real estate 276 435 — 278 3 408 10 Commercial 204 267 — 214 1 218 5 Home equity 267 705 — 131 — 130 — Consumer — — — — — — — HPFC — — — — — — — Ending balance 2,290 3,414 — 1,960 15 2,081 43 Total impaired loans $ 5,517 $ 6,641 $ 738 $ 6,075 $ 46 $ 6,286 $ 136 September 30, 2018: With an allowance recorded: Residential real estate $ 3,577 $ 3,577 $ 619 $ 3,541 $ 27 $ 2,428 $ 96 Commercial real estate 349 349 23 350 6 2,428 17 Commercial — — — — — — — Home equity 318 318 114 391 — 232 — Consumer — — — — — — — HPFC — — — — — — — Ending Balance 4,244 4,244 756 4,282 33 5,088 113 Without an allowance recorded: Residential real estate 1,607 1,807 — 1,750 13 1,582 27 Commercial real estate 4,658 4,944 — 4,700 — 2,637 — Commercial 1,548 2,725 — 1,580 2 1,666 6 Home equity 55 206 — 39 — 213 — Consumer — — — — — — — HPFC — — — — — — — Ending Balance 7,868 9,682 — 8,069 15 6,098 33 Total impaired loans $ 12,112 $ 13,926 $ 756 $ 12,351 $ 48 $ 11,186 $ 146 For the Year Ended (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2018: With an allowance recorded: Residential real estate $ 3,471 $ 3,471 $ 586 $ 3,591 $ 127 Commercial real estate 131 131 23 1,969 11 Commercial 556 556 53 111 — Home equity 318 318 162 250 — Consumer — — — — — HPFC — — — — — Ending Balance 4,476 4,476 824 5,921 138 Without an allowance recorded: Residential real estate 1,291 1,415 — 1,524 34 Commercial real estate 799 975 — 2,269 13 Commercial 230 293 — 1,379 8 Home equity 124 305 — 195 — Consumer 6 13 — 1 — HPFC — — — — — Ending Balance 2,450 3,001 — 5,368 55 Total impaired loans $ 6,926 $ 7,477 $ 824 $ 11,289 $ 193 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The following right-of-use assets and lease liabilities have been reported within other assets and other liabilities on the consolidated statements of condition for the period indicated: September 30, 2019 (In thousands) Balance Sheet Line Item Operating Leases Finance Leases Total Right-of-use assets Other Assets $ 13,015 $ 1,529 $ 14,544 Lease liabilities Other Liabilities 13,059 1,692 14,751 In accordance with ASC 842, the components of lease expense for the periods indicated were as follows: (In thousands) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Lease Cost: Operating lease cost (1) $ 379 $ 1,098 Finance lease cost: Amortization of right-of-use assets 28 83 Interest on lease liabilities (2) 17 51 Total finance lease cost 45 134 Total Lease Cost $ 424 $ 1,232 (1) Includes immaterial short-term and variable lease costs, but excludes common area maintenance costs. (2) Includes immaterial variable lease costs. |
Supplemental Cash Flow and Balance Sheet Information | Supplemental cash flow information and non-cash activity related to leases was as follows for the period indicated: (In thousands) Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,001 Operating cash flows from finance leases 51 Financing cash flows from finance leases 79 Right-of-use assets obtained in exchange for new lease obligations: Operating leases (1) $ 13,775 Finance leases (1) 1,612 (1) Reflects right-of-use assets recorded for the period indicated, including $10.5 million of operating leases and $1.6 million of finance leases recorded upon adoption of ASU 2016-02, as of January 1, 2019. Supplemental balance sheet information related to leases was as follows for the period indicated: September 30, 2019 Weighted average remaining lease term (years): Operating leases 16.1 years Finance leases 22.6 years Weighted average discount rate: Operating leases 3.40 % Finance leases 3.95 % |
Maturities of Operating Lease Liabilities | The following summarizes the remaining scheduled future minimum lease payments for operating and finance leases as of September 30, 2019: (In thousands) Operating Leases Finance Leases 2019 $ 358 $ 44 2020 1,366 174 2021 1,289 174 2022 1,278 174 2023 1,239 174 Thereafter 11,543 2,095 Total minimum lease payments 17,073 2,835 Less: amount representing interest (1) 4,014 1,143 Present value of net minimum lease payments (2) $ 13,059 $ 1,692 (1) Amount necessary to reduce net minimum lease payments to present value calculated at the Company's incremental borrowing rate. (2) Reflects the liability reported within other liabilities on the consolidated statements of condition. |
Maturities of Finance Lease Liabilities | The following summarizes the remaining scheduled future minimum lease payments for operating and finance leases as of September 30, 2019: (In thousands) Operating Leases Finance Leases 2019 $ 358 $ 44 2020 1,366 174 2021 1,289 174 2022 1,278 174 2023 1,239 174 Thereafter 11,543 2,095 Total minimum lease payments 17,073 2,835 Less: amount representing interest (1) 4,014 1,143 Present value of net minimum lease payments (2) $ 13,059 $ 1,692 (1) Amount necessary to reduce net minimum lease payments to present value calculated at the Company's incremental borrowing rate. (2) Reflects the liability reported within other liabilities on the consolidated statements of condition. |
Schedule Of Future Minimum Lease Payments For Operating And Capital Leases [Table Text Block] | The following summarizes expected future minimum lease payments, in accordance with ASC 840, as of December 31, 2018: (In thousands) Operating Capital 2019 $ 1,420 $ 179 2020 941 179 2021 726 182 2022 539 184 2023 434 184 Thereafter 1,268 1,592 Total minimum lease payments $ 5,328 2,500 Less: amount representing interest (1) 920 Present value of net minimum lease payments (2) $ 1,580 (1) Amount necessary to reduce net minimum lease payments to present value calculated at the Company's incremental borrowing rate at lease inception. (2) Reflects the liability reported within long-term borrowings on the consolidated statements of condition at December 31, 2018. |
BORROWINGS (Tables)
BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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: (In thousands) September 30, December 31, 2018 Short-Term Borrowings: Customer repurchase agreements $ 273,454 $ 245,868 FHLBB borrowings — 25,000 Total short-term borrowings $ 273,454 $ 270,868 Long-Term Borrowings: FHLBB borrowings $ 10,000 $ 10,000 Capital lease obligation (1) — 1,580 Total long-term borrowings $ 10,000 $ 11,580 (1) Upon adoption of ASU 2016-02, effective January 1, 2019, lease liabilities are presented within other liabilities on the consolidated statements of condition. Refer to Notes 2 and 5 for further information. |
REPURCHASE AGREEMENTS (Tables)
REPURCHASE AGREEMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 for the periods indicated: (In thousands) September 30, 2019 December 31, 2018 Customer Repurchase Agreements (1)(2) : Obligations of states and political subdivisions $ 1,642 $ 1,455 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 109,312 125,590 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 162,500 118,823 Total $ 273,454 $ 245,868 (1) Presented within short-term borrowings on the consolidated statements of condition. (2) All customer repurchase agreements mature continuously or overnight for the dates indicated. |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 off-balance sheet financial instruments: (In thousands) September 30, December 31, Lending-Related Instruments: Commitments to extend credit $ 755,731 $ 654,575 Standby letters of credit 5,776 3,063 Derivative Financial Instruments: Customer loan swaps $ 832,286 $ 833,030 Interest rate swap on loans 100,000 — Fixed-rate mortgage interest rate lock commitments 54,144 12,077 Junior subordinated debt interest rate swaps 43,000 43,000 Forward delivery commitments 16,630 4,315 FHLBB advance interest rate swaps — 25,000 |
Summary of Derivative Financial Instruments | The following table presents the total positions, notional and fair value of the Company's customer loans swaps with its commercial customers and the corresponding interest rate swap agreements with the counterparty for the dates indicated: (In thousands, except number of positions) September 30, 2019 December 31, 2018 Presentation on Consolidated Statements of Condition Number of Positions Notional Amount Fair Value Number of Positions Notional Amount Fair Value Receive fixed, pay variable Accrued interest and other liabilities 1 $ 1,146 $ (2 ) 57 $ 297,624 $ (7,841 ) Receive fixed, pay variable Other assets 84 414,997 24,260 25 118,891 3,467 Pay fixed, receive variable (Accrued interest and other liabilities) / other assets 85 416,143 (24,258 ) 82 416,515 4,374 Total 170 $ 832,286 $ — 164 $ 833,030 $ — The details of the junior subordinated debt interest rate swaps for the dates indicated were as follows: (Dollars in thousands) September 30, 2019 December 31, 2018 Trade Maturity Variable Index Fixed Rate Presentation on Consolidated Statements of Condition Notional Amount Fair Value Notional Amount Fair Value 3/18/2009 6/30/2021 3-Month USD LIBOR 5.09% Accrued interest and other liabilities $ 10,000 $ (357 ) $ 10,000 $ (272 ) 7/8/2009 6/30/2029 3-Month USD LIBOR 5.84% Accrued interest and other liabilities 10,000 (2,688 ) 10,000 (1,655 ) 5/6/2010 6/30/2030 3-Month USD LIBOR 5.71% Accrued interest and other liabilities 10,000 (2,792 ) 10,000 (1,636 ) 3/14/2011 3/30/2031 3-Month USD LIBOR 4.35% Accrued interest and other liabilities 5,000 (1,501 ) 5,000 (877 ) 5/4/2011 7/7/2031 3-Month USD LIBOR 4.14% Accrued interest and other liabilities 8,000 (2,264 ) 8,000 (1,242 ) $ 43,000 $ (9,602 ) $ 43,000 $ (5,682 ) The Company's pipeline of mortgage loans with fixed-rate interest rate lock commitments for which it intends to sell the loan upon origination was as follows for the dates indicated: September 30, 2019 December 31, 2018 (In thousands) Presentation on Consolidated Statements of Condition Notional Amount Fair Value Notional Amount Fair Value Fixed-rate mortgage interest rate locks Other assets $ 50,291 $ 968 $ 8,239 $ 95 Fixed-rate mortgage interest rate locks Accrued interest and other liabilities 3,853 (30 ) 3,838 (28 ) Total $ 54,144 $ 938 $ 12,077 $ 67 The details of the interest rate swap for the date indicated were as follows: (Dollars in thousands) September 30, 2019 Trade Maturity Date Variable Index Fixed Rate Presentation on Consolidated Statements of Condition Notional Fair Value 6/12/2019 6/10/2024 1-Month USD LIBOR 1.693% Other assets $ 100,000 $ 1,507 |
Forward Delivery Commitments | The Company's forward delivery commitments on loans held for sale for the dates indicated were as follows: September 30, 2019 December 31, 2018 (In thousands) Balance Sheet Location Notional Fair Value Notional Fair Value Forward delivery commitments ("best effort") Other Assets $ 15,201 $ 501 $ 2,593 $ 32 Forward delivery commitments ("best effort") Accrued interest and other liabilities 1,429 (6 ) 1,722 (17 ) Total $ 16,630 $ 495 $ 4,315 $ 15 |
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 September 30, For The (In thousands) 2019 2018 2019 2018 Derivatives designated as cash flow hedges: Effective portion of unrealized (losses) gains recognized within OCI during the period, net of tax $ (310 ) $ 462 $ (2,438 ) $ 2,031 Net reclassification adjustment for effective portion of cash flow hedges included in interest expense, gross $ 342 $ 177 $ 662 $ 665 |
BALANCE SHEET OFFSETTING (Table
BALANCE SHEET OFFSETTING (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Offsetting [Abstract] | |
Offsetting Assets [Table Text Block] | The following table presents the Company's derivative positions and repurchase agreements, and the potential effect of netting arrangements on its financial position, as of the dates indicated: Gross Amount Not Offset in the Consolidated Statements of Condition (In thousands) Gross Amount Recognized in the Consolidated Statements of Condition Gross Amount Offset in the Consolidated Statements of Condition Net Amount Presented in the Consolidated Statements of Condition Financial Instruments Pledged (Received) (1) Cash Collateral Pledged (Received) (1) Net Amount September 30, 2019 Derivative assets: Customer loan swaps - commercial customer $ 24,260 $ — $ 24,260 $ — $ — $ 24,260 Interest rate swap 1,507 — 1,507 — (1,507 ) — Total $ 25,767 $ — $ 25,767 $ — $ (1,507 ) $ 24,260 Derivative liabilities: Customer loan swaps - dealer bank $ 24,258 $ — $ 24,258 $ — $ 24,258 — Junior subordinated debt interest rate swaps 9,602 — 9,602 — 9,602 — Customer loan swaps - commercial customer 2 — 2 — — 2 Total $ 33,862 $ — $ 33,862 $ — $ 33,860 $ 2 Customer repurchase agreements $ 273,454 $ — $ 273,454 $ 273,454 $ — $ — December 31, 2018 Derivative assets: Customer loan swaps - dealer bank $ 4,374 $ — $ 4,374 $ — $ (4,374 ) $ — Customer loan swaps - commercial customer 3,467 — 3,467 — — 3,467 FHLBB advance interest rate swaps 30 — 30 — (30 ) — Total $ 7,871 $ — $ 7,871 $ — $ (4,404 ) $ 3,467 Derivative liabilities: Junior subordinated debt interest rate swaps $ 5,682 $ — $ 5,682 $ — $ 5,682 $ — Customer loan swaps - commercial customer 7,841 — 7,841 — — 7,841 Total $ 13,523 $ — $ 13,523 $ — $ 5,682 $ 7,841 Customer repurchase agreements $ 245,868 $ — $ 245,868 $ 245,868 $ — $ — (1) The amount presented was the lesser of the amount pledged (received) or the net amount presented in the consolidated statements of condition. |
Offsetting Liabilities [Table Text Block] | The following table presents the Company's derivative positions and repurchase agreements, and the potential effect of netting arrangements on its financial position, as of the dates indicated: Gross Amount Not Offset in the Consolidated Statements of Condition (In thousands) Gross Amount Recognized in the Consolidated Statements of Condition Gross Amount Offset in the Consolidated Statements of Condition Net Amount Presented in the Consolidated Statements of Condition Financial Instruments Pledged (Received) (1) Cash Collateral Pledged (Received) (1) Net Amount September 30, 2019 Derivative assets: Customer loan swaps - commercial customer $ 24,260 $ — $ 24,260 $ — $ — $ 24,260 Interest rate swap 1,507 — 1,507 — (1,507 ) — Total $ 25,767 $ — $ 25,767 $ — $ (1,507 ) $ 24,260 Derivative liabilities: Customer loan swaps - dealer bank $ 24,258 $ — $ 24,258 $ — $ 24,258 — Junior subordinated debt interest rate swaps 9,602 — 9,602 — 9,602 — Customer loan swaps - commercial customer 2 — 2 — — 2 Total $ 33,862 $ — $ 33,862 $ — $ 33,860 $ 2 Customer repurchase agreements $ 273,454 $ — $ 273,454 $ 273,454 $ — $ — December 31, 2018 Derivative assets: Customer loan swaps - dealer bank $ 4,374 $ — $ 4,374 $ — $ (4,374 ) $ — Customer loan swaps - commercial customer 3,467 — 3,467 — — 3,467 FHLBB advance interest rate swaps 30 — 30 — (30 ) — Total $ 7,871 $ — $ 7,871 $ — $ (4,404 ) $ 3,467 Derivative liabilities: Junior subordinated debt interest rate swaps $ 5,682 $ — $ 5,682 $ — $ 5,682 $ — Customer loan swaps - commercial customer 7,841 — 7,841 — — 7,841 Total $ 13,523 $ — $ 13,523 $ — $ 5,682 $ 7,841 Customer repurchase agreements $ 245,868 $ — $ 245,868 $ 245,868 $ — $ — (1) The amount presented was the lesser of the amount pledged (received) or the net amount presented in the consolidated statements of condition. |
REGULATORY CAPITAL REQUIREMEN_2
REGULATORY CAPITAL REQUIREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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: September 30, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer Minimum Regulatory Provision To Be "Well Capitalized" Under Prompt Corrective Action Provisions December 31, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer Minimum Regulatory Provision To Be "Well Capitalized" Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Camden National Corporation: Total risk-based capital ratio $ 448,712 13.97 % 10.50 % N/A $ 434,331 14.36 % 9.875 % N/A Tier I risk-based capital ratio 408,014 12.70 % 8.50 % N/A 394,597 13.04 % 7.875 % N/A Common equity Tier I risk-based capital ratio 365,014 11.36 % 7.00 % N/A 351,597 11.62 % 6.375 % N/A Tier I leverage capital ratio 408,014 9.39 % 4.00 % N/A 394,597 9.53 % 4.00 % N/A Camden National Bank: Total risk-based capital ratio $ 415,786 12.96 % 10.50 % 10.00 % $ 398,773 13.18 % 9.875 % 10.00 % Tier I risk-based capital ratio 390,088 12.16 % 8.50 % 8.00 % 374,039 12.36 % 7.875 % 8.00 % Common equity Tier I risk-based capital ratio 390,088 12.16 % 7.00 % 6.50 % 374,039 12.36 % 6.375 % 6.50 % Tier I leverage capital ratio 390,088 9.01 % 4.00 % 5.00 % 374,039 9.06 % 4.00 % 5.00 % |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Components of Net Period Benefit Cost | The components of net periodic benefit cost for the periods ended September 30, 2019 and 2018 , were as follows: Supplemental Executive Retirement Plan: (In thousands) Three Months Ended Nine Months Ended Net periodic pension cost Income Statement Presentation 2019 2018 2019 2018 Service cost Salaries and employee benefits $ 98 $ 112 $ 296 $ 335 Interest cost Other expenses 131 122 392 366 Recognized net actuarial loss Other expenses 61 140 183 420 Total $ 290 $ 374 $ 871 $ 1,121 Other Postretirement Benefit Plan: (In thousands) Three Months Ended Nine Months Ended Net periodic postretirement benefit cost Income Statement Presentation 2019 2018 2019 2018 Service cost Salaries and employee benefits $ 12 $ 12 $ 36 $ 35 Interest cost Other expenses 37 33 111 99 Recognized net actuarial loss Other expenses 7 12 19 39 Amortization of prior service credit Other expenses (6 ) (6 ) (18 ) (18 ) Total $ 50 $ 51 $ 148 $ 155 |
EPS (Tables)
EPS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Analysis of Basic and Diluted Earnings Per Share | The following is an analysis of basic and diluted EPS, reflecting the application of the two-class method, as described below: Three Months Ended Nine Months Ended (In thousands, except number of shares and per share data) 2019 2018 2019 2018 Net income $ 14,488 $ 14,057 $ 41,965 $ 39,094 Dividends and undistributed earnings allocated to participating securities (1) (33 ) (39 ) (86 ) (110 ) Net income available to common shareholders $ 14,455 $ 14,018 $ 41,879 $ 38,984 Weighted-average common shares outstanding for basic EPS 15,339,093 15,580,782 15,482,765 15,565,355 Dilutive effect of stock-based awards (2) 42,835 58,204 39,736 56,045 Weighted-average common and potential common shares for diluted EPS 15,381,928 15,638,986 15,522,501 15,621,400 Earnings per common share: Basic EPS $ 0.94 $ 0.90 $ 2.70 $ 2.50 Diluted EPS $ 0.94 $ 0.90 $ 2.70 $ 2.50 (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 and vesting of restricted shares and restricted stock units utilizing the treasury stock method. Not included are the unvested LTIP awards, which are the Company's performance-based awards. |
FAIR VALUE MEASUREMENT AND DI_2
FAIR VALUE MEASUREMENT AND DISCLOSURE (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value, for the dates indicated: (In thousands) Fair Value Readily Available Market Prices (Level 1) Observable Market Data (Level 2) Company Determined Fair Value (Level 3) September 30, 2019 Financial assets: Loans held for sale $ 16,449 $ — $ 16,449 $ — AFS investments: Obligations of states and political subdivisions 111,999 — 111,999 — Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 454,073 — 454,073 — Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 337,716 — 337,716 — Subordinated corporate bonds 9,735 — 9,735 — Equity securities - bank stock 808 — 808 — Customer loan swaps 24,260 — 24,260 — Interest rate swap on loans 1,507 — 1,507 — Fixed-rate mortgage interest rate lock commitments 968 — 968 — Forward delivery commitments 501 — 501 — Financial liabilities: Junior subordinated debt interest rate swaps 9,602 — 9,602 — Customer loan swaps 24,260 — 24,260 — Fixed-rate mortgage interest rate lock commitments 30 — 30 — Forward delivery commitments 6 — 6 — December 31, 2018 Financial assets: Loans held for sale $ 4,403 $ — $ 4,403 $ — AFS investments: Obligations of states and political subdivisions 93,752 — 93,752 — Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 453,672 — 453,672 — Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 342,894 — 342,894 — Subordinated corporate bonds 20,374 — 20,374 — Equity securities - bank stock 746 — 746 — Customer loan swaps 7,841 — 7,841 — Fixed-rate mortgage interest rate lock commitments 95 — 95 — Forward delivery commitments 32 — 32 — FHLBB advance interest rate swaps 30 — 30 — Financial liabilities: Junior subordinated debt interest rate swaps 5,682 — 5,682 — Customer loan swaps 7,841 — 7,841 — Fixed-rate mortgage interest rate lock commitments 28 — 28 — Forward delivery commitments 17 — 17 — |
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 for the dates indicated: (In thousands) Fair Value Readily Available Market Prices (Level 1) Observable Market Data (Level 2) Company Determined Fair Value (Level 3) September 30, 2019 Financial assets: Collateral-dependent impaired loans $ 485 $ — $ — $ 485 Non-financial assets: OREO 94 — — 94 December 31, 2018 Financial assets: Collateral-dependent impaired loans $ 522 $ — $ — $ 522 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 for the dates indicated: (Dollars in thousands) Fair Value Valuation Methodology Unobservable input Discount Range (Weighted-Average) September 30, 2019 Collateral-dependent impaired loans: Partially charged-off $ 485 Market approach appraisal of collateral Management adjustment of appraisal 0% (0%) Estimated selling costs 10% (10%) OREO $ 94 Market approach appraisal of collateral Management adjustment of appraisal 18% (18%) Estimated selling cost 13% (13%) December 31, 2018 Collateral-dependent impaired loans: Partially charged-off $ 50 Market approach appraisal of collateral Management adjustment 0% (0%) Estimated selling costs 10% (10%) Specifically reserved $ 472 Market approach appraisal of collateral Management adjustment 0% (0%) Estimated selling costs 10% (10%) OREO $ 130 Market approach appraisal of collateral Management adjustment of appraisal 19% (19%) Estimated selling cost 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 dates indicated: (In thousands) Carrying Amount Fair Value Readily Available Market Prices (Level 1) Observable Market Prices (Level 2) Company Determined Market Prices (Level 3) September 30, 2019 Financial assets: HTM securities $ 1,303 $ 1,352 $ — $ 1,352 $ — Residential real estate loans (1) 1,055,676 1,054,019 — — 1,054,019 Commercial real estate loans (1) 1,243,443 1,210,699 — — 1,210,699 Commercial loans (1)(2) 441,125 430,900 — — 430,900 Home equity loans (1) 320,788 311,905 — — 311,905 Consumer loans (1) 23,914 22,161 — — 22,161 Servicing assets 807 1,380 — — 1,380 Financial liabilities: Time deposits $ 652,334 $ 651,741 $ — $ 651,741 $ — Short-term borrowings 273,454 273,215 — 273,215 — Long-term borrowings 10,000 9,991 — 9,991 — Subordinated debentures 59,005 49,728 — 49,728 — December 31, 2018 Financial assets: HTM securities $ 1,307 $ 1,291 $ — $ 1,291 $ — Residential real estate loans (1) 986,795 957,957 — — 957,957 Commercial real estate loans (1) 1,257,879 1,218,436 — — 1,218,436 Commercial loans (1)(2) 411,479 404,805 — — 404,805 Home equity loans (1) 324,967 317,359 — — 317,359 Consumer loans (1) 20,390 18,969 — — 18,969 Servicing assets 831 1,677 — — 1,677 Financial liabilities: Time deposits $ 661,281 $ 654,954 $ — $ 654,954 $ — Short-term borrowings 270,868 270,598 — 270,598 — Long-term borrowings 11,580 11,573 — 11,573 — Subordinated debentures 59,067 49,060 — 49,060 — (1) The presented carrying amount is net of the allocated ALL. (2) Includes the HPFC loan portfolio. |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS NEW ACCOUNTING PRONOUNCEMENTS (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease assets | $ 13,015 | |||
Finance lease assets | 1,529 | |||
Operating lease liabilities | [1] | $ 13,059 | ||
ASU 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Operating lease assets | $ 12,100 | |||
Finance lease assets | 12,100 | |||
Operating lease liabilities | 12,300 | |||
Cumulative effect adjustment | [2] | 254 | ||
ASU 2016-02 | Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect adjustment | [2] | $ 254 | ||
ASU 2016-01 | Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect adjustment | [3] | $ 198 | ||
[1] | (2) Reflects the liability reported within other liabilities on the consolidated statements of condition. | |||
[2] | Effective January 1, 2019, the Company adopted ASU 2016-02, Leases, on a modified-retrospective basis. Refer to Note 2 for further details. | |||
[3] | Effective January 1, 2018, the Company adopted ASU 2016-01, Income Statement - Financial Instruments. As a result of the adoption, the Company reclassified its unrealized gain on equity investments from accumulated other comprehensive loss to retained earnings. |
INVESTMENTS (Narrative) (Detail
INVESTMENTS (Narrative) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Schedule of Investments [Line Items] | |||||
Net unrealized gains (losses) on available-for-sale securities, net of tax | $ 7,484,000 | $ 7,484,000 | $ (17,826,000) | ||
Deferred tax assets, unrealized losses on available for sale securities | $ 2,000,000 | $ 2,000,000 | $ 4,900,000 | ||
Unrealized Loss as a Percent of Fair Value | 1.00% | 1.00% | 3.00% | ||
Security pledged as collateral, amortized cost | $ 704,600,000 | $ 704,600,000 | $ 734,100,000 | ||
Security pledged as collateral, fair value | 711,500,000 | 711,500,000 | $ 714,400,000 | ||
Unrealized loss, change in fair value of bank stock equity securities | $ (22,000) | $ 11,000 | $ 62,000 | $ (13,000) | |
Investment Securities Sold, Carrying Amount | 441,000 | 441,000 | |||
Gain (Loss) on Sale of Other Investments, Miscellaneous | $ 939,000 | $ 939,000 |
INVESTMENTS (Summary of Amortiz
INVESTMENTS (Summary of Amortized Costs and Estimated Fair Values of Available-For-Sale Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
AFS Investments (carried at fair value): | ||
Available-for-sale securities, at fair value (book value of $903,988 and $933,399, respectively) | $ 913,523 | $ 910,692 |
HTM Investments (carried at amortized cost): | ||
Amortized Cost | 1,303 | 1,307 |
Unrealized Gains | 49 | 8 |
Unrealized Losses | 0 | (24) |
Fair Value | 1,352 | 1,291 |
Obligations of states and political subdivisions | ||
AFS Investments (carried at fair value): | ||
Amortized Cost | 109,519 | 94,430 |
Unrealized Gains | 2,649 | 216 |
Unrealized Losses | (169) | (894) |
Available-for-sale securities, at fair value (book value of $903,988 and $933,399, respectively) | 111,999 | 93,752 |
HTM Investments (carried at amortized cost): | ||
Amortized Cost | 1,303 | 1,307 |
Unrealized Gains | 49 | 8 |
Unrealized Losses | 0 | (24) |
Fair Value | 1,352 | 1,291 |
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||
AFS Investments (carried at fair value): | ||
Amortized Cost | 449,112 | 466,613 |
Unrealized Gains | 5,799 | 583 |
Unrealized Losses | (838) | (13,524) |
Available-for-sale securities, at fair value (book value of $903,988 and $933,399, respectively) | 454,073 | 453,672 |
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
AFS Investments (carried at fair value): | ||
Amortized Cost | 335,797 | 351,958 |
Unrealized Gains | 3,653 | 1,007 |
Unrealized Losses | (1,734) | (10,071) |
Available-for-sale securities, at fair value (book value of $903,988 and $933,399, respectively) | 337,716 | 342,894 |
Subordinated corporate bonds | ||
AFS Investments (carried at fair value): | ||
Amortized Cost | 9,560 | 20,398 |
Unrealized Gains | 175 | 23 |
Unrealized Losses | 0 | (47) |
Available-for-sale securities, at fair value (book value of $903,988 and $933,399, respectively) | 9,735 | 20,374 |
Total AFS investments | ||
AFS Investments (carried at fair value): | ||
Amortized Cost | 903,988 | 933,399 |
Unrealized Gains | 12,276 | 1,829 |
Unrealized Losses | (2,741) | (24,536) |
Available-for-sale securities, at fair value (book value of $903,988 and $933,399, respectively) | $ 913,523 | $ 910,692 |
INVESTMENTS (Schedule of Unreal
INVESTMENTS (Schedule of Unrealized Gross Losses and Estimated Fair values of Investment Securities) (Details) $ in Thousands | Sep. 30, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value - Less Than 12 Months | $ 95,519 | $ 100,011 |
Unrealized Losses - Less Than 12 Months | (304) | (599) |
Fair Value - 12 Months of More | 159,818 | 621,294 |
Unrealized Losses - 12 Months or More | (2,437) | (23,937) |
Fair Value | 255,337 | 721,305 |
Unrealized losses | $ (2,741) | $ (24,536) |
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 2 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 78 | 300 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 509 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (5) | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 411 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (19) | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 920 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | (24) | |
Obligations of states and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value - Less Than 12 Months | $ 24,439 | 36,218 |
Unrealized Losses - Less Than 12 Months | (169) | (281) |
Fair Value - 12 Months of More | 0 | 28,437 |
Unrealized Losses - 12 Months or More | 0 | (613) |
Fair Value | 24,439 | 64,655 |
Unrealized losses | $ (169) | $ (894) |
Held-to-maturity, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 2 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 9 | 114 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | $ 509 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (5) | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 411 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (19) | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 920 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | (24) | |
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value - Less Than 12 Months | $ 36,108 | 46,459 |
Unrealized Losses - Less Than 12 Months | (50) | (252) |
Fair Value - 12 Months of More | 86,109 | 364,430 |
Unrealized Losses - 12 Months or More | (788) | (13,272) |
Fair Value | 122,217 | 410,889 |
Unrealized losses | $ (838) | $ (13,524) |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 40 | 117 |
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value - Less Than 12 Months | $ 34,972 | $ 5,956 |
Unrealized Losses - Less Than 12 Months | (85) | (40) |
Fair Value - 12 Months of More | 73,709 | 227,461 |
Unrealized Losses - 12 Months or More | (1,649) | (10,031) |
Fair Value | 108,681 | 233,417 |
Unrealized losses | $ (1,734) | $ (10,071) |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 29 | 63 |
Subordinated corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value - Less Than 12 Months | $ 11,378 | |
Unrealized Losses - Less Than 12 Months | (26) | |
Fair Value - 12 Months of More | 966 | |
Unrealized Losses - 12 Months or More | (21) | |
Fair Value | 12,344 | |
Unrealized losses | $ (47) | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | security | 6 |
INVESTMENTS (Schedule of Sale o
INVESTMENTS (Schedule of Sale of AFS Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Schedule of Sale of AFS Investments [Abstract] | |||||
Proceeds from Sale of Available-for-sale Securities | [1] | $ 97,042 | $ 22,830 | $ 142,868 | $ 32,728 |
Available-for-sale Securities, Gross Realized Gains | 1,015 | 0 | 1,386 | 31 | |
Available-for-sale Securities, Gross Realized Losses | $ (1,014) | $ (275) | $ (1,358) | $ (275) | |
[1] | (1) The Company had not previously recorded any OTTI on these investments sold. |
INVESTMENTS (Schedule of Amorti
INVESTMENTS (Schedule of Amortized Cost and Estimated Fair Values of Debt Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Available-for-sale, Amortized Cost | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 82,995 | |
Due after five years through ten years | 186,981 | |
Due after ten years | 634,012 | |
Amortized cost, total | 903,988 | |
Available-for-sale, Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 83,568 | |
Due after five years through ten years | 189,976 | |
Due after ten years | 639,979 | |
Fair value, total | 913,523 | |
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract] | ||
Due in one year or less | 0 | |
Due after one year through five years | 0 | |
Due after five years through ten years | 1,303 | |
Due after ten years | 0 | |
Amortized Cost | 1,303 | $ 1,307 |
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Fair Value [Abstract] | ||
Due in one year or less | 0 | |
Due after one year through five years | 0 | |
Due after five years through ten years | 1,352 | |
Due after ten years | 0 | |
Debt Securities, Held-to-maturity, Fair Value | $ 1,352 | $ 1,291 |
INVESTMENTS (Schedule of Amor_2
INVESTMENTS (Schedule of Amortized Cost and Fair Value of Other Investments) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Equity securities - bank stock, Amortized Cost | $ 544 | $ 544 |
Equity securities - bank stock, Unrealized Gains | 264 | 202 |
Equity securities - bank stock, Unrealized Losses | 0 | 0 |
Equity securities - bank stock, Fair Value | 808 | 746 |
FHLBB (carried at cost) | 5,436 | 8,559 |
FRB (carried at cost) | 5,374 | 5,374 |
Other Investments, Amortized Cost | 11,354 | 14,477 |
Other Investments, Unrealized Gain | 264 | 202 |
Other Investments, Unrealized Loss | 0 | 0 |
Other Investments, Fair Value | $ 11,618 | $ 14,679 |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($)loan | Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($)loan | Dec. 31, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Related Parties, Description | At September 30, 2019 and December 31, 2018, outstanding loans to certain officers, directors and their associated companies was less than 5% of the Company's shareholders' equity. | At September 30, 2019 and December 31, 2018, outstanding loans to certain officers, directors and their associated companies was less than 5% of the Company's shareholders' equity. | |||
Other industry exposures | 0 | ||||
Interest lost on nonaccrual loans | $ 106,000 | $ 171,000 | $ 330,000 | $ 507,000 | |
Loans modified | loan | 0 | 1 | 0 | 1 | |
Proceeds from the sale of mortgage loans | $ 168,394,000 | $ 159,740,000 | |||
Gain on sale of mortgage loans | 3,928,000 | 4,126,000 | |||
Loans held for sale, at fair value (book value of $16,630 and $4,314, respectively) | $ 16,449,000 | 16,449,000 | $ 4,403,000 | ||
FHLB advances, general debt obligations, pledged collateral | 1,300,000,000 | 1,300,000,000 | 1,100,000,000 | ||
Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans restructured due to credit difficulties that are now performing | 3,300,000 | 3,300,000 | 3,900,000 | ||
Financing receivables impaired TDR non-performing | 600,000 | 600,000 | 513,000 | ||
Residential Real Estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Mortgage Loans in Process of Foreclosure, Amount | 1,500,000 | 1,500,000 | 2,300,000 | ||
Fixed Rate Residential Mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Proceeds from the sale of mortgage loans | 86,900,000 | $ 58,400,000 | 164,500,000 | 155,600,000 | |
Gain on sale of mortgage loans | 1,900,000 | $ 1,500,000 | 3,900,000 | $ 4,100,000 | |
Loans held for sale, at fair value (book value of $16,630 and $4,314, respectively) | 16,600,000 | 16,600,000 | 4,300,000 | ||
Home Equity Loan [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans modified | loan | 1 | 1 | |||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 299,000 | $ 299,000 | |||
Nonoperating Income (Expense) | Fixed Rate Residential Mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Gain on sale of mortgage loans | $ 205,000 | $ 99,000 | 269,000 | $ 67,000 | |
Unrealized gain (loss) on loans held for sale | $ (181,000) | $ 89,000 | |||
Minimum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Months | 18 | 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 | 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) | 12.00% | ||||
Non-Residential Building Operators Industry Sector | Loan Concentration Risk | Commercial Real Estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration risk (percentage) | 31.00% |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN LOSSES (Composition of Loan Portfolio) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 3,110,634 | $ 3,026,222 | $ 2,908,843 |
Residential Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 1,061,898 | 992,866 | |
Loans | 1,061,898 | 992,866 | 941,488 |
Commercial Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 1,255,519 | 1,269,533 | |
Loans | 1,255,519 | 1,269,533 | 1,215,979 |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 421,754 | 381,780 | |
Loans | 421,754 | 381,780 | 368,837 |
Home Equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 323,564 | 327,763 | |
Loans | 323,564 | 327,763 | 325,452 |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 24,187 | 20,624 | |
Loans | 24,187 | 20,624 | 20,258 |
HPFC Portfolio Segment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 23,712 | 33,656 | |
Loans | $ 23,712 | $ 33,656 | $ 36,829 |
LOANS AND ALLOWANCE FOR LOAN L
LOANS AND ALLOWANCE FOR LOAN LOSSES (Unamortized fair value mark and costs) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Net Unamortized fair Value Mark (Discount) on Loans | $ 2,887 | $ 3,936 |
Loans and Leases Receivable, Deferred Income | (2,936) | (1,865) |
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | $ (49) | $ 2,071 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES (Activity in Allowance for Loan Losses by Portfolio Segment) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Reserve for unfunded commitments | $ 11,000 | $ 15,000 | $ 11,000 | $ 15,000 | $ 22,000 |
Activity in ALL: | |||||
Beginning balance | 26,163,000 | 23,668,000 | 24,712,000 | 24,171,000 | 24,171,000 |
Loans charged off | (1,303,000) | (659,000) | (1,910,000) | (1,851,000) | (2,248,000) |
Recoveries | 95,000 | 162,000 | 228,000 | 361,000 | 1,944,000 |
Provision (credit)(1) | 733,000 | 355,000 | 2,658,000 | 845,000 | 845,000 |
Ending balance | 25,688,000 | 23,526,000 | 25,688,000 | 23,526,000 | 24,712,000 |
Ending Balance: Individually evaluated for impairment | 738,000 | 756,000 | 738,000 | 756,000 | 824,000 |
Ending Balance: Collectively evaluated for impairment | 24,950,000 | 22,770,000 | 24,950,000 | 22,770,000 | 23,888,000 |
Ending Balance: Individually evaluated for impairment | 5,517,000 | 12,112,000 | 5,517,000 | 12,112,000 | 6,926,000 |
Ending Balance: Collectively evaluated for impairment | 3,105,117,000 | 2,896,731,000 | 3,105,117,000 | 2,896,731,000 | 3,019,296,000 |
Total Loans Outstanding | 3,110,634,000 | 2,908,843,000 | 3,110,634,000 | 2,908,843,000 | 3,026,222,000 |
Residential Real Estate | |||||
Activity in ALL: | |||||
Beginning balance | 6,249,000 | 5,779,000 | 6,071,000 | 5,086,000 | 5,086,000 |
Loans charged off | (411,000) | (115,000) | (436,000) | (231,000) | (173,000) |
Recoveries | 2,000 | 37,000 | 6,000 | 52,000 | 90,000 |
Provision (credit)(1) | 382,000 | 59,000 | 581,000 | 853,000 | 1,068,000 |
Ending balance | 6,222,000 | 5,760,000 | 6,222,000 | 5,760,000 | 6,071,000 |
Ending Balance: Individually evaluated for impairment | 337,000 | 619,000 | 337,000 | 619,000 | 586,000 |
Ending Balance: Collectively evaluated for impairment | 5,885,000 | 5,141,000 | 5,885,000 | 5,141,000 | 5,485,000 |
Ending Balance: Individually evaluated for impairment | 3,880,000 | 5,184,000 | 3,880,000 | 5,184,000 | 4,762,000 |
Ending Balance: Collectively evaluated for impairment | 1,058,018,000 | 936,304,000 | 1,058,018,000 | 936,304,000 | 988,104,000 |
Total Loans Outstanding | 1,061,898,000 | 941,488,000 | 1,061,898,000 | 941,488,000 | 992,866,000 |
Commercial Real Estate | |||||
Activity in ALL: | |||||
Beginning balance | 12,152,000 | 10,310,000 | 11,654,000 | 11,863,000 | 11,863,000 |
Loans charged off | (92,000) | 0 | (157,000) | (512,000) | (512,000) |
Recoveries | 34,000 | 4,000 | 41,000 | 19,000 | 28,000 |
Provision (credit)(1) | (18,000) | 268,000 | 538,000 | (788,000) | 275,000 |
Ending balance | 12,076,000 | 10,582,000 | 12,076,000 | 10,582,000 | 11,654,000 |
Ending Balance: Individually evaluated for impairment | 29,000 | 23,000 | 29,000 | 23,000 | 23,000 |
Ending Balance: Collectively evaluated for impairment | 12,047,000 | 10,559,000 | 12,047,000 | 10,559,000 | 11,631,000 |
Ending Balance: Individually evaluated for impairment | 406,000 | 5,007,000 | 406,000 | 5,007,000 | 930,000 |
Ending Balance: Collectively evaluated for impairment | 1,255,113,000 | 1,210,972,000 | 1,255,113,000 | 1,210,972,000 | 1,268,603,000 |
Total Loans Outstanding | 1,255,519,000 | 1,215,979,000 | 1,255,519,000 | 1,215,979,000 | 1,269,533,000 |
Commercial | |||||
Activity in ALL: | |||||
Beginning balance | 4,107,000 | 4,303,000 | 3,620,000 | 4,171,000 | 4,171,000 |
Loans charged off | (183,000) | (150,000) | (636,000) | (448,000) | (736,000) |
Recoveries | 56,000 | 117,000 | 167,000 | 237,000 | 1,770,000 |
Provision (credit)(1) | 124,000 | (302,000) | 953,000 | 8,000 | (1,585,000) |
Ending balance | 4,104,000 | 3,968,000 | 4,104,000 | 3,968,000 | 3,620,000 |
Ending Balance: Individually evaluated for impairment | 303,000 | 0 | 303,000 | 0 | 53,000 |
Ending Balance: Collectively evaluated for impairment | 3,801,000 | 3,968,000 | 3,801,000 | 3,968,000 | 3,567,000 |
Ending Balance: Individually evaluated for impairment | 646,000 | 1,548,000 | 646,000 | 1,548,000 | 786,000 |
Ending Balance: Collectively evaluated for impairment | 421,108,000 | 367,289,000 | 421,108,000 | 367,289,000 | 380,994,000 |
Total Loans Outstanding | 421,754,000 | 368,837,000 | 421,754,000 | 368,837,000 | 381,780,000 |
Home Equity | |||||
Activity in ALL: | |||||
Beginning balance | 2,992,000 | 2,616,000 | 2,796,000 | 2,367,000 | 2,367,000 |
Loans charged off | (348,000) | (157,000) | (392,000) | (381,000) | (476,000) |
Recoveries | 0 | 0 | 0 | 44,000 | 44,000 |
Provision (credit)(1) | 132,000 | 116,000 | 372,000 | 545,000 | 861,000 |
Ending balance | 2,776,000 | 2,575,000 | 2,776,000 | 2,575,000 | 2,796,000 |
Ending Balance: Individually evaluated for impairment | 69,000 | 114,000 | 69,000 | 114,000 | 162,000 |
Ending Balance: Collectively evaluated for impairment | 2,707,000 | 2,461,000 | 2,707,000 | 2,461,000 | 2,634,000 |
Ending Balance: Individually evaluated for impairment | 585,000 | 373,000 | 585,000 | 373,000 | 442,000 |
Ending Balance: Collectively evaluated for impairment | 322,979,000 | 325,079,000 | 322,979,000 | 325,079,000 | 327,321,000 |
Total Loans Outstanding | 323,564,000 | 325,452,000 | 323,564,000 | 325,452,000 | 327,763,000 |
Consumer | |||||
Activity in ALL: | |||||
Beginning balance | 383,000 | 260,000 | 234,000 | 233,000 | 233,000 |
Loans charged off | (258,000) | (28,000) | (278,000) | (70,000) | (96,000) |
Recoveries | 3,000 | 3,000 | 14,000 | 8,000 | 11,000 |
Provision (credit)(1) | 145,000 | 38,000 | 303,000 | 102,000 | 86,000 |
Ending balance | 273,000 | 273,000 | 273,000 | 273,000 | 234,000 |
Ending Balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Ending Balance: Collectively evaluated for impairment | 273,000 | 273,000 | 273,000 | 273,000 | 234,000 |
Ending Balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | 6,000 |
Ending Balance: Collectively evaluated for impairment | 24,187,000 | 20,258,000 | 24,187,000 | 20,258,000 | 20,618,000 |
Total Loans Outstanding | 24,187,000 | 20,258,000 | 24,187,000 | 20,258,000 | 20,624,000 |
HPFC Portfolio Segment | |||||
Activity in ALL: | |||||
Beginning balance | 280,000 | 400,000 | 337,000 | 451,000 | 451,000 |
Loans charged off | (11,000) | (209,000) | (11,000) | (209,000) | (255,000) |
Recoveries | 0 | 1,000 | 0 | 1,000 | 1,000 |
Provision (credit)(1) | (32,000) | 176,000 | (89,000) | 125,000 | 140,000 |
Ending balance | 237,000 | 368,000 | 237,000 | 368,000 | 337,000 |
Ending Balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Ending Balance: Collectively evaluated for impairment | 237,000 | 368,000 | 237,000 | 368,000 | 337,000 |
Ending Balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Ending Balance: Collectively evaluated for impairment | 23,712,000 | 36,829,000 | 23,712,000 | 36,829,000 | 33,656,000 |
Total Loans Outstanding | $ 23,712,000 | $ 36,829,000 | $ 23,712,000 | $ 36,829,000 | $ 33,656,000 |
LOANS AND ALLOWANCE FOR LOAN _6
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Provision for Credit Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract] | |||||
Provision (credit)(1) | $ 733 | $ 355 | $ 2,658 | $ 845 | $ 845 |
Change in reserve for unfunded commitments | (3) | (1) | (11) | (5) | 2 |
Provision for credit losses | $ 730 | $ 354 | $ 2,647 | $ 840 | $ 847 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES (Credit Risk Exposure Indicators by Portfolio Segment) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $ 3,110,634 | $ 3,026,222 | $ 2,908,843 |
Pass (Grades 1-6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,716,510 | 2,636,966 | |
Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 345,141 | 346,512 | |
Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 20,205 | 12,619 | |
Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 26,168 | 28,250 | |
Non-performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,610 | 1,875 | |
Residential Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,061,898 | 992,866 | 941,488 |
Residential Real Estate | Pass (Grades 1-6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,053,013 | 983,086 | |
Residential Real Estate | Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 477 | 887 | |
Residential Real Estate | Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 8,408 | 8,893 | |
Commercial Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,255,519 | 1,269,533 | 1,215,979 |
Commercial Real Estate | Pass (Grades 1-6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,224,231 | 1,247,190 | |
Commercial Real Estate | Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 17,047 | 7,921 | |
Commercial Real Estate | Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 14,241 | 14,422 | |
Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 421,754 | 381,780 | 368,837 |
Commercial | Pass (Grades 1-6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 416,591 | 374,429 | |
Commercial | Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,591 | 3,688 | |
Commercial | Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,572 | 3,663 | |
Home Equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 323,564 | 327,763 | 325,452 |
Home Equity | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 320,961 | 325,917 | |
Home Equity | Non-performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,603 | 1,846 | |
Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 24,187 | 20,624 | 20,258 |
Consumer | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 24,180 | 20,595 | |
Consumer | Non-performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 7 | 29 | |
HPFC Portfolio Segment | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 23,712 | 33,656 | $ 36,829 |
HPFC Portfolio Segment | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 22,675 | 32,261 | |
HPFC Portfolio Segment | Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 90 | 123 | |
HPFC Portfolio Segment | Non-performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $ 947 | $ 1,272 |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Loan Aging Analysis by Portfolio Segment) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 13,784 | $ 17,812 | |
Current | 3,096,850 | 3,008,410 | |
Total Loans Outstanding | 3,110,634 | 3,026,222 | $ 2,908,843 |
Loans 90 Days Past Due and Accruing | 0 | 14 | |
Non-Accrual Loans | 10,125 | 10,530 | |
Residential Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 5,307 | 9,866 | |
Current | 1,056,591 | 983,000 | |
Total Loans Outstanding | 1,061,898 | 992,866 | 941,488 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 5,152 | 5,492 | |
Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,947 | 3,271 | |
Current | 1,252,572 | 1,266,262 | |
Total Loans Outstanding | 1,255,519 | 1,269,533 | 1,215,979 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 1,156 | 1,380 | |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,870 | 968 | |
Current | 419,884 | 380,812 | |
Total Loans Outstanding | 421,754 | 381,780 | 368,837 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 751 | 1,279 | |
Home Equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,007 | 2,990 | |
Current | 320,557 | 324,773 | |
Total Loans Outstanding | 323,564 | 327,763 | 325,452 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 2,609 | 1,846 | |
Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 90 | 111 | |
Current | 24,097 | 20,513 | |
Total Loans Outstanding | 24,187 | 20,624 | 20,258 |
Loans 90 Days Past Due and Accruing | 0 | 14 | |
Non-Accrual Loans | 7 | 15 | |
HPFC Portfolio Segment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 563 | 606 | |
Current | 23,149 | 33,050 | |
Total Loans Outstanding | 23,712 | 33,656 | $ 36,829 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 450 | 518 | |
30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,129 | 6,218 | |
30-59 Days Past Due | Residential Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,200 | 3,300 | |
30-59 Days Past Due | Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 637 | 1,794 | |
30-59 Days Past Due | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 280 | 150 | |
30-59 Days Past Due | Home Equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 917 | 907 | |
30-59 Days Past Due | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 65 | 67 | |
30-59 Days Past Due | HPFC Portfolio Segment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 30 | 0 | |
60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,307 | 3,239 | |
60-89 Days Past Due | Residential Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 578 | 2,046 | |
60-89 Days Past Due | Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,606 | 369 | |
60-89 Days Past Due | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 855 | 19 | |
60-89 Days Past Due | Home Equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 86 | 607 | |
60-89 Days Past Due | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 19 | 15 | |
60-89 Days Past Due | HPFC Portfolio Segment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 163 | 183 | |
Greater than 90 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 7,348 | 8,355 | |
Greater than 90 Days | Residential Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,529 | 4,520 | |
Greater than 90 Days | Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 704 | 1,108 | |
Greater than 90 Days | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 735 | 799 | |
Greater than 90 Days | Home Equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,004 | 1,476 | |
Greater than 90 Days | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 6 | 29 | |
Greater than 90 Days | HPFC Portfolio Segment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 370 | $ 423 |
LOANS AND ALLOWANCE FOR LOAN _9
LOANS AND ALLOWANCE FOR LOAN LOSSES (Troubled Debt Restructuring Loans) (Details) $ in Thousands | Sep. 30, 2019USD ($)loan | Dec. 31, 2018USD ($)loan |
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | loan | 26 | 31 |
Recorded Investment | $ 3,863 | $ 4,406 |
Specific Reserve | $ 435 | $ 628 |
Residential Real Estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | loan | 21 | 25 |
Recorded Investment | $ 3,095 | $ 3,614 |
Specific Reserve | $ 337 | $ 443 |
Commercial Real Estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | loan | 2 | 2 |
Recorded Investment | $ 341 | $ 347 |
Specific Reserve | $ 29 | $ 23 |
Commercial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | loan | 2 | 2 |
Recorded Investment | $ 128 | $ 141 |
Specific Reserve | $ 0 | $ 0 |
Consumer | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | loan | 1 | 2 |
Recorded Investment | $ 299 | $ 304 |
Specific Reserve | $ 69 | $ 162 |
LOANS AND ALLOWANCE FOR LOAN_10
LOANS AND ALLOWANCE FOR LOAN LOSSES, Troubled Debt Restructuring by Portfolio Segment (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($)loan | Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | loan | 0 | 2 | 0 | 3 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 0 | $ 234 | $ 0 | $ 397 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 0 | 234 | 0 | 420 |
Allowance Related to Troubled Debt Restructurings assigned during period | $ 0 | $ 57 | $ 0 | $ 96 |
Residential Real Estate [Member] | Interest Rate and Maturity Concession [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | loan | 0 | 1 | 0 | 2 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 0 | $ 68 | $ 0 | $ 231 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 0 | 68 | 0 | 254 |
Allowance Related to Troubled Debt Restructurings assigned during period | $ 0 | $ 12 | $ 0 | $ 51 |
Residential Real Estate [Member] | Payment Deferral [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | loan | 0 | 1 | 0 | 1 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 0 | $ 166 | $ 0 | $ 166 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 0 | 166 | 0 | 166 |
Allowance Related to Troubled Debt Restructurings assigned during period | $ 0 | $ 45 | $ 0 | $ 45 |
LOANS AND ALLOWANCE FOR LOAN_11
LOANS AND ALLOWANCE FOR LOAN LOSSES (Summary of Impaired Loan Balances and Associated Allowance by Portfolio Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment - with an allowance recorded | $ 3,227 | $ 4,244 | $ 3,227 | $ 4,244 | $ 4,476 |
Unpaid Principal Balance - with an allowance recorded | 3,227 | 4,244 | 3,227 | 4,244 | 4,476 |
Related Allowance | 738 | 756 | 738 | 756 | 824 |
Average Recorded Investment - with an allowance recorded | 4,115 | 4,282 | 4,205 | 5,088 | 5,921 |
Interest Income Recognized - with an allowance recorded | 31 | 33 | 93 | 113 | 138 |
Recorded Investment - without allowance recorded | 2,290 | 7,868 | 2,290 | 7,868 | 2,450 |
Unpaid Principal Balance - without allowance recorded | 3,414 | 9,682 | 3,414 | 9,682 | 3,001 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | 0 | 0 | |
Average Recorded Investment - without allowance recorded | 1,960 | 8,069 | 2,081 | 6,098 | 5,368 |
Interest Income Recognized - without allowance recorded | 15 | 15 | 43 | 33 | 55 |
Impaired Financing Receivable, Recorded Investment | 5,517 | 12,112 | 5,517 | 12,112 | 6,926 |
Impaired financing receivable, unpaid principal balance | 6,641 | 13,926 | 6,641 | 13,926 | 7,477 |
Impaired Financing Receivable, Average Recorded Investment | 6,075 | 12,351 | 6,286 | 11,186 | 11,289 |
Impaired Financing Receivable, Interest Income, Accrual Method | 46 | 48 | 136 | 146 | 193 |
Residential Real Estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment - with an allowance recorded | 2,337 | 3,577 | 2,337 | 3,577 | 3,471 |
Unpaid Principal Balance - with an allowance recorded | 2,337 | 3,577 | 2,337 | 3,577 | 3,471 |
Related Allowance | 337 | 619 | 337 | 619 | 586 |
Average Recorded Investment - with an allowance recorded | 3,026 | 3,541 | 3,137 | 2,428 | 3,591 |
Interest Income Recognized - with an allowance recorded | 28 | 27 | 84 | 96 | 127 |
Recorded Investment - without allowance recorded | 1,543 | 1,607 | 1,543 | 1,607 | 1,291 |
Unpaid Principal Balance - without allowance recorded | 2,007 | 1,807 | 2,007 | 1,807 | 1,415 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | 0 | 0 | |
Average Recorded Investment - without allowance recorded | 1,337 | 1,750 | 1,325 | 1,582 | 1,524 |
Interest Income Recognized - without allowance recorded | 11 | 13 | 28 | 27 | 34 |
Commercial Real Estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment - with an allowance recorded | 130 | 349 | 130 | 349 | 131 |
Unpaid Principal Balance - with an allowance recorded | 130 | 349 | 130 | 349 | 131 |
Related Allowance | 29 | 23 | 29 | 23 | 23 |
Average Recorded Investment - with an allowance recorded | 130 | 350 | 130 | 2,428 | 1,969 |
Interest Income Recognized - with an allowance recorded | 3 | 6 | 9 | 17 | 11 |
Recorded Investment - without allowance recorded | 276 | 4,658 | 276 | 4,658 | 799 |
Unpaid Principal Balance - without allowance recorded | 435 | 4,944 | 435 | 4,944 | 975 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | 0 | 0 | |
Average Recorded Investment - without allowance recorded | 278 | 4,700 | 408 | 2,637 | 2,269 |
Interest Income Recognized - without allowance recorded | 3 | 10 | 13 | ||
Commercial | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment - with an allowance recorded | 442 | 0 | 442 | 0 | 556 |
Unpaid Principal Balance - with an allowance recorded | 442 | 0 | 442 | 0 | 556 |
Related Allowance | 303 | 0 | 303 | 0 | 53 |
Average Recorded Investment - with an allowance recorded | 301 | 365 | 111 | ||
Recorded Investment - without allowance recorded | 204 | 1,548 | 204 | 1,548 | 230 |
Unpaid Principal Balance - without allowance recorded | 267 | 2,725 | 267 | 2,725 | 293 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | 0 | 0 | |
Average Recorded Investment - without allowance recorded | 214 | 1,580 | 218 | 1,666 | 1,379 |
Interest Income Recognized - without allowance recorded | 1 | 2 | 5 | 6 | 8 |
Home Equity | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment - with an allowance recorded | 318 | 318 | 318 | 318 | 318 |
Unpaid Principal Balance - with an allowance recorded | 318 | 318 | 318 | 318 | 318 |
Related Allowance | 69 | 114 | 69 | 114 | 162 |
Average Recorded Investment - with an allowance recorded | 658 | 391 | 573 | 232 | 250 |
Recorded Investment - without allowance recorded | 267 | 55 | 267 | 55 | 124 |
Unpaid Principal Balance - without allowance recorded | 705 | 206 | 705 | 206 | 305 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | 0 | 0 | |
Average Recorded Investment - without allowance recorded | 131 | 39 | 130 | 213 | 195 |
Consumer | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment - with an allowance recorded | 0 | 0 | 0 | 0 | 0 |
Unpaid Principal Balance - with an allowance recorded | 0 | 0 | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 | 0 | 0 |
Average Recorded Investment - with an allowance recorded | 0 | ||||
Recorded Investment - without allowance recorded | 0 | 0 | 0 | 0 | 6 |
Unpaid Principal Balance - without allowance recorded | 0 | 0 | 0 | 0 | 13 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | 0 | 0 | |
Average Recorded Investment - without allowance recorded | 1 | ||||
HPFC Portfolio Segment | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment - with an allowance recorded | 0 | 0 | 0 | 0 | 0 |
Unpaid Principal Balance - with an allowance recorded | 0 | 0 | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 | 0 | 0 |
Average Recorded Investment - with an allowance recorded | 0 | ||||
Recorded Investment - without allowance recorded | 0 | 0 | 0 | 0 | 0 |
Unpaid Principal Balance - without allowance recorded | 0 | 0 | 0 | 0 | 0 |
Impaired Financing Receivable With No Related Allowance Related Allowance | $ 0 | $ 0 | $ 0 | $ 0 | |
Average Recorded Investment - without allowance recorded | $ 0 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Leases [Abstract] | ||
Rent expense | $ 321 | $ 993 |
LEASES - Components of Lease Ex
LEASES - Components of Lease Expense (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |||
Leases [Abstract] | ||||
Operating lease assets | $ 13,015 | $ 13,015 | ||
Finance lease assets | 1,529 | 1,529 | ||
Total leased assets | 14,544 | 14,544 | ||
Operating lease liabilities | 13,059 | [1] | 13,059 | [1] |
Finance lease liabilities | 1,692 | [1] | 1,692 | [1] |
Lease liabilities | 14,751 | 14,751 | ||
Operating lease cost | 379 | [2] | 1,098 | [2] |
Amortization of right-of-use assets | 28 | 83 | ||
Interest on lease liabilities | 17 | [3] | 51 | [3] |
Total finance lease cost | 45 | 134 | ||
Total Lease Cost | $ 424 | $ 1,232 | ||
[1] | (2) Reflects the liability reported within other liabilities on the consolidated statements of condition. | |||
[2] | (1)Includes immaterial short-term and variable lease costs, but excludes common area maintenance costs. | |||
[3] | (2)Includes immaterial variable lease costs. |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow and Balance Sheet Information (Details) - USD ($) | Jan. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ 1,001,000 | |||
Operating cash flows from finance leases | 51,000 | |||
Financing cash flows from finance leases | 79,000 | $ 0 | ||
Right-of-use assets obtained in exchange for new lease obligations: | ||||
Operating leases | [1] | 13,775,000 | ||
Finance leases | [1] | $ 1,612,000 | ||
Weighted average remaining lease term (years): | ||||
Operating leases | 16 years 1 month | |||
Finance leases | 22 years 7 months 12 days | |||
Weighted average discount rate: | ||||
Operating leases | 3.40% | |||
Finance leases | 3.95% | |||
ASU 2016-02 | ||||
Right-of-use assets obtained in exchange for new lease obligations: | ||||
Operating leases | $ 10,500,000 | |||
Finance leases | $ 1,600,000 | |||
[1] | (1) Reflects right-of-use assets recorded for the period indicated, including $10.5 million of operating leases and $1.6 million of finance leases recorded upon adoption of ASU 2016-02, as of January 1, 2019. |
LEASES - Maturities of Operatin
LEASES - Maturities of Operating and Finance Lease Liabilities (Details) $ in Thousands | Sep. 30, 2019USD ($) | |
Operating Leases | ||
2019 | $ 358 | |
2020 | 1,366 | |
2021 | 1,289 | |
2022 | 1,278 | |
2023 | 1,239 | |
Thereafter | 11,543 | |
Total minimum lease payments | 17,073 | |
Less: amount representing interest | 4,014 | [1] |
Present value of net minimum lease payments | 13,059 | [2] |
Finance Leases | ||
2019 | 44 | |
2020 | 174 | |
2021 | 174 | |
2022 | 174 | |
2023 | 174 | |
Thereafter | 2,095 | |
Total minimum lease payments | 2,835 | |
Less: amount representing interest | 1,143 | [1] |
Present value of net minimum lease payments | $ 1,692 | [2] |
[1] | (1) Amount necessary to reduce net minimum lease payments to present value calculated at the Company's incremental borrowing rate. | |
[2] | (2) Reflects the liability reported within other liabilities on the consolidated statements of condition. |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payments ASC 840 (Details) $ in Thousands | Dec. 31, 2018USD ($) | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2019 | $ 1,420 | |
2020 | 941 | |
2021 | 726 | |
2022 | 539 | |
2023 | 434 | |
Thereafter | 1,268 | |
Total minimum lease payments | 5,328 | |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2019 | 179 | |
2020 | 179 | |
2021 | 182 | |
2022 | 184 | |
2023 | 184 | |
Thereafter | 1,592 | |
Total minimum lease payments | 2,500 | |
Less: amount representing interest | 920 | [1] |
Present value of net minimum lease payments | $ 1,580 | [2] |
[1] | (1) Amount necessary to reduce net minimum lease payments to present value calculated at the Company's incremental borrowing rate at lease inception. | |
[2] | (2) Reflects the liability reported within long-term borrowings on the consolidated statements of condition at December 31, 2018. |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Repurchase Agreements | $ 273,454 | $ 245,868 | |
Total short-term borrowings | 273,454 | 270,868 | |
Long-term Federal Home Loan Bank Advances | 10,000 | 10,000 | |
Total long-term borrowings | 10,000 | 11,580 | |
Short-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Repurchase Agreements | 273,454 | 245,868 | |
FHLBB advances less than 90 days | 0 | 25,000 | |
Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Capital lease obligation | [1] | $ 0 | $ 1,580 |
[1] | (1)Upon adoption of ASU 2016-02, effective January 1, 2019, lease liabilities are presented within other liabilities on the consolidated statements of condition. Refer to Notes 2 and 5 for further information. |
REPURCHASE AGREEMENTS (Details)
REPURCHASE AGREEMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Assets Sold under Agreements to Repurchase [Line Items] | |||
Repurchase Agreements | $ 273,454 | $ 245,868 | |
September 30, 2019 | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Repurchase Agreements | [1],[2] | 273,454 | 245,868 |
Obligations of states and political subdivisions | September 30, 2019 | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Repurchase Agreements | [1],[2] | 1,642 | 1,455 |
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | September 30, 2019 | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Repurchase Agreements | [1],[2] | 109,312 | 125,590 |
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | September 30, 2019 | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Repurchase Agreements | [1],[2] | 162,500 | 118,823 |
Collateral Pledged [Member] | September 30, 2019 | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Certificates of Deposit, at Carrying Value | $ 1,000 | $ 923 | |
[1] | (1)Presented within short-term borrowings on the consolidated statements of condition. | ||
[2] | (2)All customer repurchase agreements mature continuously or overnight for the dates indicated. |
COMMITMENTS, CONTINGENCIES AN_3
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Narrative) (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($)derivative | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)derivativeswap | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($)derivative | |
Other Commitments [Line Items] | |||||
Loss Contingency Accrual | $ 0 | $ 0 | $ 0 | ||
Unrealized Gain (Loss) on Derivatives | 467,000 | $ 46,000 | $ 871,000 | $ 38,000 | |
Derivative, Number of Interest Rate Swap Agreements | swap | 2 | ||||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | $ 900,000 | ||||
Customer Loan Swaps | |||||
Other Commitments [Line Items] | |||||
Cash held as collateral | 26,200,000 | 26,200,000 | 5,100,000 | ||
Notional amount of derivative | 832,286,000 | 832,286,000 | 833,030,000 | ||
Interest Rate Swap On Loans [Member] | |||||
Other Commitments [Line Items] | |||||
Cash held as collateral | 1,500,000 | 1,500,000 | |||
Notional amount of derivative | 100,000,000 | 100,000,000 | 0 | ||
Derivative Instrument Payment Of Interest Rate Swaps Designated As Cash Flow Hedges | 176,000 | ||||
Loss on Cash Flow Hedge Ineffectiveness | 0 | 0 | |||
Interest rate swaps | |||||
Other Commitments [Line Items] | |||||
Cash held as collateral | 10,100,000 | 10,100,000 | 5,800,000 | ||
Notional amount of derivative | 43,000,000 | 43,000,000 | 43,000,000 | ||
Derivative Instrument Payment Of Interest Rate Swaps Designated As Cash Flow Hedges | 518,000 | 689,000 | |||
Loss on Cash Flow Hedge Ineffectiveness | 0 | 0 | 0 | 0 | |
Forward-Starting Interest Rate Swap | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | 0 | 0 | 25,000,000 | ||
Derivative Instrument Payment Of Interest Rate Swaps Designated As Cash Flow Hedges | 32,000 | 24,000 | |||
Forward Contracts [Member] | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | 16,630,000 | 16,630,000 | 4,315,000 | ||
Unrealized Gain (Loss) on Derivatives | 238,000 | $ 49,000 | 480,000 | $ 99,000 | |
Cancellable Commitment | |||||
Other Commitments [Line Items] | |||||
Contractual Amounts Of Financial Instrument | 275,100,000 | 275,100,000 | 270,800,000 | ||
Federal home loan bank 30-day | Interest rate swaps | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | $ 414,997,000 | $ 414,997,000 | $ 118,891,000 | ||
Derivative, Number of Instruments Held | derivative | 84 | 84 | 25 | ||
Commercial and Industrial Sector [Member] | Interest rate swaps | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | $ 416,143,000 | $ 416,143,000 | $ 416,515,000 | ||
Derivative, Number of Instruments Held | derivative | 85 | 85 | 82 | ||
Contract Two [Member] | Interest rate swaps | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | ||
Contract Two [Member] | Forward-Starting Interest Rate Swap | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | 0 | 0 | 25,000,000 | ||
Contract, One | Interest rate swaps | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 |
COMMITMENTS, CONTINGENCIES AN_4
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Summary of Contractual and Notional Amounts of Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Customer Loan Swaps | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | $ 832,286 | $ 833,030 |
Interest Rate Swap On Loans [Member] | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | 100,000 | 0 |
Forward-Starting Interest Rate Swap | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | 0 | 25,000 |
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 | 54,144 | 12,077 |
Forward Contracts [Member] | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | 16,630 | 4,315 |
Standby Letters of Credit [Member] | ||
Financial Instruments [Line Items] | ||
Contractual Amounts Of Financial Instrument | 5,776 | 3,063 |
Commitments to Extend Credit [Member] | ||
Financial Instruments [Line Items] | ||
Contractual Amounts Of Financial Instrument | $ 755,731 | $ 654,575 |
COMMITMENTS, CONTINGENCIES AN_5
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Schedule of customer loan swaps) (Details) $ in Thousands | Sep. 30, 2019USD ($)derivative | Dec. 31, 2018USD ($)derivative |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount of derivative | $ 43,000 | $ 43,000 |
Fair Value | $ (9,602) | $ (5,682) |
Interest rate swaps | Federal home loan bank 30-day | ||
Derivative [Line Items] | ||
Derivative, Number of Instruments Held | derivative | 84 | 25 |
Notional amount of derivative | $ 414,997 | $ 118,891 |
Fair Value | 24,260 | 3,467 |
Forward-Starting Interest Rate Swap | ||
Derivative [Line Items] | ||
Notional amount of derivative | $ 0 | $ 25,000 |
Commercial and Industrial Sector [Member] | Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative, Number of Instruments Held | derivative | 85 | 82 |
Notional amount of derivative | $ 416,143 | $ 416,515 |
Fair Value | $ (24,258) | $ 4,374 |
Loans [Member] | Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative, Number of Instruments Held | derivative | 170 | 164 |
Notional amount of derivative | $ 832,286 | $ 833,030 |
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 | 1 | 57 |
Notional amount of derivative | $ 1,146 | $ 297,624 |
Fair Value | $ (2) | $ (7,841) |
COMMITMENTS, CONTINGENCIES AN_6
COMMITMENTS, CONTINGENCIES AND DERIVATIVES COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Schedule of Interest Rate Swap on Loans) (Details) - Interest Rate Swap On Loans [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Trade Date | Jun. 12, 2019 | |
Maturity Date | Jun. 10, 2024 | |
Fixed Rate Paid | 1.693% | |
Notional Amount | $ 100,000 | $ 0 |
Derivative, Fair Value, Net | $ 1,507 |
COMMITMENTS, CONTINGENCIES AN_7
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Schedule of interest rate lock commitments) (Details) - Interest Rate Lock Commitments - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Other Commitments [Line Items] | ||
Notional amount of derivative | $ 54,144 | $ 12,077 |
Derivative, Fair Value, Net | 938 | 67 |
Other Assets [Member] | ||
Other Commitments [Line Items] | ||
Notional amount of derivative | 50,291 | 8,239 |
Derivative Asset, Fair Value, Gross Asset | 968 | 95 |
Other Liabilities [Member] | ||
Other Commitments [Line Items] | ||
Notional amount of derivative | 3,853 | 3,838 |
Derivative Liability, Fair Value, Gross Liability | $ (30) | $ (28) |
COMMITMENTS, CONTINGENCIES AN_8
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Schedule of Swapped Variable Cost for Fixed Cost and Terms of Interest Rate Swap Agreements) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Interest rate swaps | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 43,000,000 | $ 43,000,000 | $ 43,000,000 | ||
Fair Value | (9,602,000) | (9,602,000) | (5,682,000) | ||
Loss on Cash Flow Hedge Ineffectiveness | 0 | $ 0 | $ 0 | $ 0 | |
Interest rate swaps | Contract, One | |||||
Derivative [Line Items] | |||||
Federal Home Loan Bank, Advances, Maturity Period, Variable Rate | 3 months | ||||
Notional Amount | $ 10,000,000 | $ 10,000,000 | 10,000,000 | ||
Trade Date | Mar. 18, 2009 | ||||
Maturity Date | Jun. 30, 2021 | ||||
Fixed Rate Paid | 5.09% | 5.09% | |||
Fair Value | $ (357,000) | $ (357,000) | (272,000) | ||
Interest rate swaps | Contract, Two | |||||
Derivative [Line Items] | |||||
Federal Home Loan Bank, Advances, Maturity Period, Variable Rate | 3 months | ||||
Notional Amount | $ 10,000,000 | $ 10,000,000 | 10,000,000 | ||
Trade Date | Jul. 8, 2009 | ||||
Maturity Date | Jun. 30, 2029 | ||||
Fixed Rate Paid | 5.84% | 5.84% | |||
Fair Value | $ (2,688,000) | $ (2,688,000) | (1,655,000) | ||
Interest rate swaps | Contract, Three | |||||
Derivative [Line Items] | |||||
Federal Home Loan Bank, Advances, Maturity Period, Variable Rate | 3 months | ||||
Notional Amount | $ 10,000,000 | $ 10,000,000 | 10,000,000 | ||
Trade Date | May 6, 2010 | ||||
Maturity Date | Jun. 30, 2030 | ||||
Fixed Rate Paid | 5.71% | 5.71% | |||
Fair Value | $ (2,792,000) | $ (2,792,000) | (1,636,000) | ||
Interest rate swaps | Contract, Four | |||||
Derivative [Line Items] | |||||
Federal Home Loan Bank, Advances, Maturity Period, Variable Rate | 3 months | ||||
Notional Amount | $ 5,000,000 | $ 5,000,000 | 5,000,000 | ||
Trade Date | Mar. 14, 2011 | ||||
Maturity Date | Mar. 30, 2031 | ||||
Fixed Rate Paid | 4.35% | 4.35% | |||
Fair Value | $ (1,501,000) | $ (1,501,000) | (877,000) | ||
Interest rate swaps | Contract, Five | |||||
Derivative [Line Items] | |||||
Federal Home Loan Bank, Advances, Maturity Period, Variable Rate | 3 months | ||||
Notional Amount | $ 8,000,000 | $ 8,000,000 | 8,000,000 | ||
Trade Date | May 4, 2011 | ||||
Maturity Date | Jul. 7, 2031 | ||||
Fixed Rate Paid | 4.14% | 4.14% | |||
Fair Value | $ (2,264,000) | $ (2,264,000) | (1,242,000) | ||
Forward-Starting Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Notional Amount | 0 | $ 0 | 25,000,000 | ||
Forward-Starting Interest Rate Swap | Contract, One | |||||
Derivative [Line Items] | |||||
Federal Home Loan Bank, Advances, Maturity Period, Variable Rate | 1 month | ||||
Forward-Starting Interest Rate Swap | Contract, Two | |||||
Derivative [Line Items] | |||||
Federal Home Loan Bank, Advances, Maturity Period, Variable Rate | 1 month | ||||
Notional Amount | $ 0 | $ 0 | 25,000,000 | ||
Trade Date | Feb. 25, 2015 | ||||
Maturity Date | Feb. 25, 2019 | ||||
Fixed Rate Paid | 1.74% | 1.74% | |||
Fair Value | $ 0 | $ 0 | 30,000 | ||
Interest Rate Swap On Loans [Member] | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 100,000,000 | $ 100,000,000 | $ 0 | ||
Trade Date | Jun. 12, 2019 | ||||
Maturity Date | Jun. 10, 2024 | ||||
Fixed Rate Paid | 1.693% | 1.693% | |||
Fair Value | $ 1,507,000 | $ 1,507,000 | |||
Loss on Cash Flow Hedge Ineffectiveness | $ 0 | $ 0 |
COMMITMENTS, CONTINGENCIES AN_9
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Schedule of forward loan sale commitments) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Other Commitments [Line Items] | |||||
Unrealized Gain (Loss) on Derivatives | $ 467,000 | $ 46,000 | $ 871,000 | $ 38,000 | |
Forward Contracts [Member] | |||||
Other Commitments [Line Items] | |||||
Unrealized Gain (Loss) on Derivatives | 238,000 | $ 49,000 | 480,000 | $ 99,000 | |
Notional amount of derivative | 16,630,000 | 16,630,000 | $ 4,315,000 | ||
Derivative Asset, Fair Value, Gross Asset | 501,000 | 501,000 | 32,000 | ||
Derivative Liability, Fair Value, Gross Liability | (6,000) | (6,000) | (17,000) | ||
Derivative, Fair Value, Net | 495,000 | 495,000 | 15,000 | ||
Forward Contracts [Member] | Other Assets [Member] | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | 15,201,000 | 15,201,000 | 2,593,000 | ||
Forward Contracts [Member] | Other Liabilities [Member] | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | 1,429,000 | 1,429,000 | 1,722,000 | ||
Interest Rate Lock Commitments [Member] | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | 54,144,000 | 54,144,000 | 12,077,000 | ||
Derivative, Fair Value, Net | 938,000 | 938,000 | 67,000 | ||
Interest Rate Lock Commitments [Member] | Other Assets [Member] | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | 50,291,000 | 50,291,000 | 8,239,000 | ||
Derivative Asset, Fair Value, Gross Asset | 968,000 | 968,000 | 95,000 | ||
Interest Rate Lock Commitments [Member] | Other Liabilities [Member] | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | 3,853,000 | 3,853,000 | 3,838,000 | ||
Derivative Liability, Fair Value, Gross Liability | $ (30,000) | $ (30,000) | $ (28,000) |
COMMITMENTS, CONTINGENCIES A_10
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Schedule of Derivatives Effects on OCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Net reclassification adjustment for effective portion of cash flow hedges included in interest expense, gross | $ 342 | $ 177 | $ 662 | $ 665 |
COMMITMENTS, CONTINGENCIES A_11
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Schedule of Derivatives Effect on OCI and Current Earnings) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ (310) | $ 462 | $ (2,438) | $ 2,031 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 342 | $ 177 | $ 662 | $ 665 |
BALANCE SHEET OFFSETTING (Detai
BALANCE SHEET OFFSETTING (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Offsetting Assets [Line Items] | |||
Derivative Asset, Not Offset, Policy Election Deduction | $ 0 | $ 0 | |
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Gross | 25,767 | 7,871 | |
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Liability | 0 | 0 | |
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed | 25,767 | 7,871 | |
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Not Offset, Policy Election Deduction | 0 | 0 | |
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Collateral, Obligation to Return Cash | [1] | (1,507) | (4,404) |
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Amount Offset Against Collateral | 24,260 | 3,467 | |
Derivative Liability, Not Offset, Policy Election Deduction | 0 | 0 | |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Gross | 33,862 | 13,523 | |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Asset | 0 | 0 | |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned | 33,862 | 13,523 | |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Not Offset, Policy Election Deduction | 0 | 0 | |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Collateral, Right to Reclaim Cash | [1] | 33,860 | 5,682 |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Amount Offset Against Collateral | 2 | 7,841 | |
Securities Sold under Agreements to Repurchase, Gross | 273,454 | 245,868 | |
Securities Sold under Agreements to Repurchase, Asset | 0 | 0 | |
Securities Sold under Agreements to Repurchase | 273,454 | 245,868 | |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Collateral, Right to Reclaim Securities | 273,454 | 245,868 | |
Securities Sold under Agreements to Repurchase, Collateral, Right to Reclaim Cash | [1] | 0 | 0 |
Securities Sold under Agreements to Repurchase, Amount Offset Against Collateral | 0 | 0 | |
Customer Loan Swap Dealer Bank [Member] | |||
Offsetting Assets [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 4,374 | ||
Derivative Asset, Fair Value, Gross Liability | 0 | ||
Derivative Asset | 4,374 | ||
Derivative, Collateral, Obligation to Return Cash | [1] | (4,374) | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | ||
Derivative Liability, Fair Value, Gross Liability | 24,258 | ||
Derivative Liability, Fair Value, Gross Asset | 0 | ||
Derivative Liability | 24,258 | ||
Derivative Liability, Not Offset, Policy Election Deduction | 0 | ||
Derivative, Collateral, Right to Reclaim Cash | [1] | 24,258 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | ||
Customer Loan Swaps Commercial Customer [Member] | |||
Offsetting Assets [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 24,260 | 3,467 | |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 | |
Derivative Asset | 24,260 | 3,467 | |
Derivative, Collateral, Obligation to Return Cash | [1] | 0 | 0 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 24,260 | 3,467 | |
Derivative Liability, Fair Value, Gross Liability | 2 | 7,841 | |
Derivative Liability, Fair Value, Gross Asset | 0 | 0 | |
Derivative Liability | 2 | 7,841 | |
Derivative, Collateral, Right to Reclaim Cash | [1] | 0 | 0 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 2 | 7,841 | |
Interest Rate Swap On Loans [Member] | |||
Offsetting Assets [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 1,507 | ||
Derivative Asset, Fair Value, Gross Liability | 0 | ||
Derivative Asset | 1,507 | ||
Derivative, Collateral, Obligation to Return Cash | [1] | (1,507) | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | ||
FHLBB Advance Interest Rate Swap [Member] | |||
Offsetting Assets [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 30 | ||
Derivative Asset, Fair Value, Gross Liability | 0 | ||
Derivative Asset | 30 | ||
Derivative, Collateral, Obligation to Return Cash | [1] | (30) | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | ||
Junior Subordinated Debt Interest Rate Swap [Member] | |||
Offsetting Assets [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability | 9,602 | 5,682 | |
Derivative Liability, Fair Value, Gross Asset | 0 | 0 | |
Derivative Liability | 9,602 | 5,682 | |
Derivative, Collateral, Right to Reclaim Cash | [1] | 9,602 | 5,682 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $ 0 | $ 0 | |
[1] | (1) The amount presented was the lesser of the amount pledged (received) or the net amount presented in the consolidated statements of condition. |
REGULATORY CAPITAL REQUIREMEN_3
REGULATORY CAPITAL REQUIREMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Oct. 08, 2015 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Subordinated debentures | $ 59,005 | $ 59,067 | $ 15,000 |
Capital | $ 448,712 | $ 434,331 | |
Capital to Risk Weighted Assets | 13.97% | 14.36% | |
Capital Required for Capital Adequacy to Risk Weighted Assets | 10.50% | 9.875% | |
Tier One Risk Based Capital | $ 408,014 | $ 394,597 | |
Tier One Risk Based Capital to Risk Weighted Assets | 12.70% | 13.04% | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 8.50% | 7.875% | |
Common equity tier I capital | $ 365,014 | $ 351,597 | |
Common Equity Tier I Risk Based Capital Ratio | 11.36% | 11.62% | |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 7.00% | 6.375% | |
Tier One Leverage Capital | $ 408,014 | $ 394,597 | |
Excess Tier One Leverage Capital to Average Assets | 9.39% | 9.53% | |
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 | $ 415,786 | $ 398,773 | |
Capital to Risk Weighted Assets | 12.96% | 13.18% | |
Capital Required for Capital Adequacy to Risk Weighted Assets | 10.50% | 9.875% | |
Tier One Risk Based Capital | $ 390,088 | $ 374,039 | |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% | |
Tier One Risk Based Capital to Risk Weighted Assets | 12.16% | 12.36% | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 8.50% | 7.875% | |
Common equity tier I capital | $ 390,088 | $ 374,039 | |
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 | 12.16% | 12.36% | |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 7.00% | 6.375% | |
Tier One Leverage Capital | $ 390,088 | $ 374,039 | |
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 | 9.01% | 9.06% | |
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 REQUIREMEN_4
REGULATORY CAPITAL REQUIREMENTS Regulatory Capital Requirements (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Oct. 08, 2015 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Capital Required for Capital Adequacy to Risk Weighted Assets | 10.50% | 9.875% | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 8.50% | 7.875% | |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 7.00% | 6.375% | |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% | |
Value Of Trust Preferred Securities Included In Tier One Capital | $ 43,000 | $ 43,000 | |
Subordinated Debt | $ 59,005 | 59,067 | $ 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 | 2.50% | ||
Tier II Capital [Domain] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Subordinated Debt | $ 15,000 | $ 15,000 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Supplemental Employee Retirement Plan [Member] | ||||
Net periodic pension cost | ||||
Service cost | $ 98 | $ 112 | $ 296 | $ 335 |
Interest cost | 131 | 122 | 392 | 366 |
Recognized net actuarial loss | 61 | 140 | 183 | 420 |
Net period benefit cost | 290 | 374 | 871 | 1,121 |
Other Postretirement Benefit Plan | ||||
Net periodic pension cost | ||||
Service cost | 12 | 12 | 36 | 35 |
Interest cost | 37 | 33 | 111 | 99 |
Recognized net actuarial loss | 7 | 12 | 19 | 39 |
Amortization of prior service credit | (6) | (6) | (18) | (18) |
Net period benefit cost | $ 50 | $ 51 | $ 148 | $ 155 |
EPS (Computation of Basic and D
EPS (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Earnings Per Share [Abstract] | |||||
Net income | $ 14,488 | $ 14,057 | $ 41,965 | $ 39,094 | |
Dividends and undistributed earnings allocated to participating securities | [1] | (33) | (39) | (86) | (110) |
Net income available to common shareholders | $ 14,455 | $ 14,018 | $ 41,879 | $ 38,984 | |
Weighted-average common shares outstanding for basic EPS | 15,339,093 | 15,580,782 | 15,482,765 | 15,565,355 | |
Dilutive effect of stock-based awards (shares) | [2] | 42,835 | 58,204 | 39,736 | 56,045 |
Weighted-average common and potential common shares for diluted EPS (shares) | 15,381,928 | 15,638,986 | 15,522,501 | 15,621,400 | |
Basic EPS (in dollars per share) | $ 0.94 | $ 0.90 | $ 2.70 | $ 2.50 | |
Diluted EPS (in dollars per share) | $ 0.94 | $ 0.90 | $ 2.70 | $ 2.50 | |
Antidilutive Stock options (shares) | 0 | 0 | 0 | 0 | |
[1] | (1)Represents dividends paid and undistributed earnings allocated to nonvested stock-based awards that contain non-forfeitable rights to dividends. | ||||
[2] | (2)Represents the effect of the assumed exercise of stock options and vesting of restricted shares and restricted stock units utilizing the treasury stock method. Not included are the unvested LTIP awards, which are the Company's performance-based awards. |
FAIR VALUE MEASUREMENT AND DI_3
FAIR VALUE MEASUREMENT AND DISCLOSURE (Narrative) (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financing Receivable, Individually Evaluated for Impairment | $ 5,517,000 | $ 6,926,000 | $ 12,112,000 |
Substandard [Member] | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financing Receivable, Individually Evaluated for Impairment | $ 500,000 |
FAIR VALUE MEASUREMENT AND DI_4
FAIR VALUE MEASUREMENT AND DISCLOSURE (Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Loans held for sale | $ 16,630 | $ 4,314 |
Available-for-sale Securities | 913,523 | 910,692 |
Obligations of states and political subdivisions | ||
Financial assets: | ||
Available-for-sale Securities | 111,999 | 93,752 |
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 454,073 | 453,672 |
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 337,716 | 342,894 |
Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Loans held for sale | 16,449 | 4,403 |
Customer loan swaps | 24,260 | |
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 5,682 | |
Customer loan swaps | 6 | |
Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ||
Financial assets: | ||
Available-for-sale Securities | 111,999 | 93,752 |
Fair Value, Measurements, Recurring | Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 454,073 | 453,672 |
Fair Value, Measurements, Recurring | Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 337,716 | 342,894 |
Fair Value, Measurements, Recurring | Corporate Bond Securities [Member] | ||
Financial assets: | ||
Available-for-sale Securities | 9,735 | 20,374 |
Fair Value, Measurements, Recurring | Equity investments | ||
Financial assets: | ||
Available-for-sale Securities | 808 | 746 |
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 investments | ||
Financial assets: | ||
Available-for-sale Securities | 0 | 0 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Loans held for sale | 16,449 | 4,403 |
Customer loan swaps | 24,260 | |
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 5,682 | |
Customer loan swaps | 6 | |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ||
Financial assets: | ||
Available-for-sale Securities | 111,999 | 93,752 |
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 | 454,073 | 453,672 |
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 | 337,716 | 342,894 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Corporate Bond Securities [Member] | ||
Financial assets: | ||
Available-for-sale Securities | 9,735 | 20,374 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Equity investments | ||
Financial assets: | ||
Available-for-sale Securities | 808 | 746 |
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 investments | ||
Financial assets: | ||
Available-for-sale Securities | 0 | 0 |
Interest Rate Swap On Loans [Member] | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 1,507 | |
Interest Rate Swap On Loans [Member] | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 1,507 | |
Interest Rate Lock Commitments [Member] | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Customer loan swaps | 968 | 95 |
Financial liabilities: | ||
Customer loan swaps | 30 | 28 |
Interest Rate Lock Commitments [Member] | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Customer loan swaps | 968 | 95 |
Financial liabilities: | ||
Customer loan swaps | 30 | 28 |
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 | 501 | 32 |
Financial liabilities: | ||
Customer loan swaps | 17 | |
Forward Contracts [Member] | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Customer loan swaps | 501 | 32 |
Financial liabilities: | ||
Customer loan swaps | 17 | |
Interest rate swaps | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Customer loan swaps | 7,841 | |
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 9,602 | |
Customer loan swaps | 7,841 | |
Interest rate swaps | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Customer loan swaps | 7,841 | |
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 9,602 | |
Customer loan swaps | 7,841 | |
Forward-Starting Interest Rate Swap | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 30 | |
Forward-Starting Interest Rate Swap | Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 0 | |
Forward-Starting Interest Rate Swap | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | $ 30 | |
Customer Loan Swaps | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Customer loan swaps | 24,260 | |
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 | 24,260 | |
Customer Loan Swaps | Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Customer loan swaps | $ 0 |
FAIR VALUE MEASUREMENT AND DI_5
FAIR VALUE MEASUREMENT AND DISCLOSURE (Summary of Assets Measured at Fair Value on Non Recurring Basis) (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Collateral-dependent impaired loans | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Fair Value | $ 485 | $ 522 |
Collateral-dependent impaired loans | Company Determined Fair Value (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Fair Value | 485 | 522 |
Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Fair Value | 94 | 130 |
Other real estate owned | Company Determined Fair Value (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Fair Value | $ 94 | $ 130 |
FAIR VALUE MEASUREMENT AND DI_6
FAIR VALUE MEASUREMENT AND DISCLOSURE (Schedule of Valuation Methodology and Unobservable Inputs) (Details) $ in Thousands | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) |
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans | $ 5,517 | $ 6,926 | $ 12,112 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Partially Charged Off [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans | 485 | 50 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Specifically Reserved [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans | 472 | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other real estate owned | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other Real Estate | $ 94 | $ 130 | |
Measurement Input, Appraised Value [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Minimum | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Partially Charged Off [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans Partially Charged Off, Measurement Input | 0 | 0 | |
Measurement Input, Appraised Value [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Minimum | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Specifically Reserved [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans Specifically Reserved, Measurement Input | 0 | ||
Measurement Input, Appraised Value [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Minimum | Fair Value, Measurements, Nonrecurring [Member] | Other real estate owned | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other Real Estate Owned, Measurement Input | 0.18 | 0.19 | |
Measurement Input, Appraised Value [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Maximum | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Partially Charged Off [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans Partially Charged Off, Measurement Input | 0 | 0 | |
Measurement Input, Appraised Value [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Maximum | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Specifically Reserved [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans Specifically Reserved, Measurement Input | 0 | ||
Measurement Input, Appraised Value [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Maximum | Fair Value, Measurements, Nonrecurring [Member] | Other real estate owned | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other Real Estate Owned, Measurement Input | 0.18 | 0.19 | |
Measurement Input, Appraised Value [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Weighted Average | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Partially Charged Off [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans Partially Charged Off, Measurement Input | 0 | 0 | |
Measurement Input, Appraised Value [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Weighted Average | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Specifically Reserved [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans Specifically Reserved, Measurement Input | 0 | ||
Measurement Input, Appraised Value [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Weighted Average | Fair Value, Measurements, Nonrecurring [Member] | Other real estate owned | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other Real Estate Owned, Measurement Input | 0.18 | 0.19 | |
Measurement Input, Cost to Sell [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Minimum | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Partially Charged Off [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans Partially Charged Off, Measurement Input | 0.10 | 0.10 | |
Measurement Input, Cost to Sell [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Minimum | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Specifically Reserved [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans Specifically Reserved, Measurement Input | 0.10 | ||
Measurement Input, Cost to Sell [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Minimum | Fair Value, Measurements, Nonrecurring [Member] | Other real estate owned | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other Real Estate Owned, Measurement Input | 0.13 | 0.10 | |
Measurement Input, Cost to Sell [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Maximum | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Partially Charged Off [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans Partially Charged Off, Measurement Input | 0.10 | 0.10 | |
Measurement Input, Cost to Sell [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Maximum | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Specifically Reserved [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans Specifically Reserved, Measurement Input | 0.10 | ||
Measurement Input, Cost to Sell [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Maximum | Fair Value, Measurements, Nonrecurring [Member] | Other real estate owned | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other Real Estate Owned, Measurement Input | 0.13 | 0.10 | |
Measurement Input, Cost to Sell [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Weighted Average | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Partially Charged Off [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans Partially Charged Off, Measurement Input | 0.10 | 0.10 | |
Measurement Input, Cost to Sell [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Weighted Average | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Specifically Reserved [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans Specifically Reserved, Measurement Input | 0.10 | ||
Measurement Input, Cost to Sell [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Weighted Average | Fair Value, Measurements, Nonrecurring [Member] | Other real estate owned | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other Real Estate Owned, Measurement Input | 0.13 | 0.10 |
FAIR VALUE MEASUREMENT AND DI_7
FAIR VALUE MEASUREMENT AND DISCLOSURE (Schedule of Carrying Amounts and Estimated Fair Value for Financial Instrument Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Financial assets: | |||
Available-for-sale Securities | $ 913,523 | $ 910,692 | |
Held-to-maturity securities, at amortized cost | 1,303 | 1,307 | |
Debt Securities, Held-to-maturity, Fair Value | 1,352 | 1,291 | |
Loans held for sale | 16,630 | 4,314 | |
Mortgage servicing rights | 1,380 | 1,677 | |
Financial liabilities: | |||
Time deposits | 651,741 | 654,954 | |
Short-term Debt, Fair Value | 273,215 | 270,598 | |
Long-term Debt, Fair Value | 9,991 | 11,573 | |
Subordinated debentures | 49,728 | 49,060 | |
Residential Real Estate | |||
Financial assets: | |||
Loans receivable, net of allowance | [1] | 1,054,019 | 957,957 |
Commercial Real Estate | |||
Financial assets: | |||
Loans receivable, net of allowance | [1] | 1,210,699 | 1,218,436 |
Commercial | |||
Financial assets: | |||
Loans receivable, net of allowance | [1],[2] | 430,900 | 404,805 |
Home Equity | |||
Financial assets: | |||
Loans receivable, net of allowance | [1] | 311,905 | 317,359 |
Consumer | |||
Financial assets: | |||
Loans receivable, net of allowance | [1] | 22,161 | 18,969 |
Readily Available Market Prices (Level 1) | |||
Financial assets: | |||
Debt Securities, Held-to-maturity, 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: | |||
Debt Securities, Held-to-maturity, Fair Value | 1,352 | 1,291 | |
Mortgage servicing rights | 0 | 0 | |
Financial liabilities: | |||
Time deposits | 651,741 | 654,954 | |
Short-term Debt, Fair Value | 273,215 | 270,598 | |
Long-term Debt, Fair Value | 9,991 | 11,573 | |
Subordinated debentures | 49,728 | 49,060 | |
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: | |||
Debt Securities, Held-to-maturity, Fair Value | 0 | 0 | |
Mortgage servicing rights | 1,380 | 1,677 | |
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 | [1] | 1,054,019 | 957,957 |
Company Determined Fair Value (Level 3) | Commercial Real Estate | |||
Financial assets: | |||
Loans receivable, net of allowance | [1] | 1,210,699 | 1,218,436 |
Company Determined Fair Value (Level 3) | Commercial | |||
Financial assets: | |||
Loans receivable, net of allowance | [1],[2] | 430,900 | 404,805 |
Company Determined Fair Value (Level 3) | Home Equity | |||
Financial assets: | |||
Loans receivable, net of allowance | [1] | 311,905 | 317,359 |
Company Determined Fair Value (Level 3) | Consumer | |||
Financial assets: | |||
Loans receivable, net of allowance | [1] | 22,161 | 18,969 |
Carrying Amount | |||
Financial assets: | |||
Held-to-maturity securities, at amortized cost | 1,303 | 1,307 | |
Mortgage servicing rights | 807 | 831 | |
Financial liabilities: | |||
Time deposits | 652,334 | 661,281 | |
Short-term Debt, Fair Value | 273,454 | 270,868 | |
Long-term Debt, Fair Value | 10,000 | 11,580 | |
Subordinated debentures | 59,005 | 59,067 | |
Carrying Amount | Residential Real Estate | |||
Financial assets: | |||
Loans receivable, net of allowance | [1] | 1,055,676 | 986,795 |
Carrying Amount | Commercial Real Estate | |||
Financial assets: | |||
Loans receivable, net of allowance | [1] | 1,243,443 | 1,257,879 |
Carrying Amount | Commercial | |||
Financial assets: | |||
Loans receivable, net of allowance | [1],[2] | 441,125 | 411,479 |
Carrying Amount | Home Equity | |||
Financial assets: | |||
Loans receivable, net of allowance | [1] | 320,788 | 324,967 |
Carrying Amount | Consumer | |||
Financial assets: | |||
Loans receivable, net of allowance | [1] | $ 23,914 | $ 20,390 |
[1] | (1)The presented carrying amount is net of the allocated ALL. | ||
[2] | (2)Includes the HPFC loan portfolio. |
Uncategorized Items - cac-20190
Label | Element | Value | |
Accounting Standards Update 2017-12 [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 665,000 | [1] |
Accounting Standards Update 2017-12 [Member] | AOCI Attributable to Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 665,000 | [1] |
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (198,000) | [2] |
[1] | Effective January 1, 2018, the Company adopted ASU 2017-12, Derivatives and Hedging. In conjunction with the adoption, the Company made the transition election to reclassify qualifying securities designated as held-to-maturity to available-for-sale. | ||
[2] | Effective January 1, 2018, the Company adopted ASU 2016-01, Income Statement - Financial Instruments. As a result of the adoption, the Company reclassified its unrealized gain on equity investments from accumulated other comprehensive loss to retained earnings. |