Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 24, 2020 | Jun. 30, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
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 Common Stock, Shares Outstanding | 15,148,441 | ||
Entity Public Float | $ 696,206,339 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No |
Consolidated Statements Of Cond
Consolidated Statements Of Condition - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 39,586 | $ 52,240 |
Interest-bearing deposits in other banks (including restricted cash) | 36,050 | 14,759 |
Total cash, cash equivalents and restricted cash | 75,636 | 66,999 |
Securities | ||
Available-for-sale securities, at fair value (book value of $913,978 and $933,399, respectively) | 918,118 | 910,692 |
Held-to-maturity securities, at amortized cost (fair value of $1,359 and $1,291, respectively) | 1,302 | 1,307 |
Other investments | 13,649 | 14,679 |
Total investments | 933,069 | 926,678 |
Loans held for sale, at fair value (book value of $11,915 and $4,314, respectively) | 11,854 | 4,403 |
Loans | 3,095,023 | 3,026,222 |
Less: allowance for loan losses | (25,171) | (24,712) |
Net loans | 3,069,852 | 3,001,510 |
Goodwill | 94,697 | 94,697 |
Core deposit intangible assets | 3,525 | 4,230 |
Bank-owned life insurance | 92,344 | 89,919 |
Premises and equipment, net | 41,836 | 42,495 |
Deferred tax assets | 16,823 | 23,053 |
Other assets | 89,885 | 43,451 |
Total assets | 4,429,521 | 4,297,435 |
Deposits | ||
Non-interest checking | 552,590 | 496,729 |
Interest checking | 1,153,203 | 1,023,373 |
Savings and money market | 1,119,193 | 1,137,356 |
Certificates of deposit | 521,752 | 443,912 |
Brokered deposits | 191,005 | 363,104 |
Total deposits | 3,537,743 | 3,464,474 |
Short-term borrowings | 268,809 | 270,868 |
Long-term borrowings | 10,000 | 11,580 |
Subordinated debentures | 59,080 | 59,067 |
Accrued interest and other liabilities | 80,474 | 55,621 |
Total liabilities | 3,956,106 | 3,861,610 |
Commitments and contingencies | ||
Shareholders' Equity | ||
Common stock, no par value: authorized 40,000,000 shares, issued and outstanding 15,144,719 and 15,591,914 on December 31, 2019 and 2018, respectively | 139,103 | 158,215 |
Retained earnings | 340,580 | 302,030 |
Accumulated other comprehensive income (loss) | ||
Net unrealized gains (losses) on available-for-sale securities, net of tax | 3,250 | (17,826) |
Net unrealized losses on cash flow hedging derivative instruments, net of tax | (6,048) | (4,437) |
Net unrecognized losses on postretirement plans, net of tax | (3,470) | (2,157) |
Total accumulated other comprehensive loss | (6,268) | (24,420) |
Total shareholders’ equity | 473,415 | 435,825 |
Total liabilities and shareholders’ equity | $ 4,429,521 | $ 4,297,435 |
Consolidated Statements Of Co_2
Consolidated Statements Of Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Available-for-sale Securities, Noncurrent | $ 913,978 | $ 933,399 |
Debt Securities, Held-to-maturity, Fair Value | 1,359 | 1,291 |
Loans Held-for-sale, Fair Value Disclosure | $ 11,915 | $ 4,314 |
Common Stock, no par value (dollars per share) | $ 0 | $ 0 |
Common stock, authorized | 40,000,000 | 40,000,000 |
Common stock, issued | 15,144,719 | 15,591,914 |
Common stock, outstanding | 15,144,719 | 15,591,914 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest Income | |||
Interest and fees on loans | $ 143,399 | $ 128,546 | $ 114,563 |
Taxable interest on investments | 19,509 | 17,727 | 16,879 |
Nontaxable interest on investments | 2,701 | 2,648 | 2,764 |
Dividend income | 722 | 1,315 | 1,135 |
Other interest income | 2,187 | 1,141 | 763 |
Total interest income | 168,518 | 151,377 | 136,104 |
Interest Expense | |||
Interest on deposits | 34,001 | 20,113 | 11,811 |
Interest on borrowings | 3,621 | 7,456 | 5,585 |
Interest on subordinated debentures | 3,266 | 3,415 | 3,408 |
Total interest expense | 40,888 | 30,984 | 20,804 |
Net interest income | 127,630 | 120,393 | 115,300 |
Provision for credit losses | 2,861 | 847 | 3,035 |
Net interest income after provision for credit losses | 124,769 | 119,546 | 112,265 |
Non-Interest Income | |||
Mortgage banking income, net | 7,837 | 5,914 | 7,363 |
Brokerage and insurance commissions | 2,625 | 2,615 | 2,147 |
Bank-owned life insurance | 2,425 | 2,430 | 2,370 |
Customer loan swap fees | 1,166 | 956 | 1,574 |
Net (loss) gain on sale of securities | (105) | 275 | 855 |
Other income | 4,170 | 3,290 | 3,080 |
Total non-interest income | 42,113 | 38,176 | 38,599 |
Non-Interest Expenses | |||
Salaries and employee benefits | 54,489 | 51,513 | 49,109 |
Furniture, equipment and data processing | 10,881 | 10,359 | 9,894 |
Net occupancy costs | 7,047 | 6,876 | 6,884 |
Consulting and professional fees | 3,706 | 3,752 | 3,118 |
Debit card expense | 3,613 | 3,180 | 2,755 |
Regulatory assessments | 1,261 | 1,937 | 2,166 |
Amortization of intangible assets | 705 | 725 | 1,809 |
Other real estate owned and collection costs, net | 480 | 935 | 971 |
Other expenses | 13,121 | 12,668 | 11,804 |
Total non-interest expense | 95,303 | 91,945 | 88,510 |
Income before income tax expense | 71,579 | 65,777 | 62,354 |
Income Tax Expense | 14,376 | 12,706 | 33,878 |
Net income | $ 57,203 | $ 53,071 | $ 28,476 |
Per Share Data | |||
Basic earnings per share | $ 3.70 | $ 3.40 | $ 1.83 |
Diluted earnings per share | $ 3.69 | $ 3.39 | $ 1.82 |
Weighted average number of common shares outstanding | 15,407,289 | 15,571,387 | 15,509,665 |
Diluted weighted average number of common shares outstanding | 15,453,022 | 15,626,303 | 15,588,347 |
Cash dividends declared, per share | $ 1.23 | $ 1.15 | $ 0.94 |
Debit Card | |||
Non-Interest Income | |||
Revenue | $ 9,701 | $ 9,067 | $ 8,079 |
Deposit Accounts | |||
Non-Interest Income | |||
Revenue | 8,393 | 8,253 | 8,023 |
Fiduciary Services | |||
Non-Interest Income | |||
Revenue | $ 5,901 | $ 5,376 | $ 5,108 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 57,203 | $ 53,071 | $ 28,476 |
Other comprehensive income (loss): | |||
Net change in unrealized gains (losses) on available-for-sale securities, net of tax | 21,076 | (7,993) | (2,444) |
Net change in unrealized losses on cash flow hedging derivatives, net of tax | (1,611) | 1,489 | 787 |
Net (loss) gain on postretirement plans, net of tax | 1,313 | (1,831) | 1,172 |
Other comprehensive income (loss) | 18,152 | (4,673) | (2,829) |
Comprehensive income | $ 75,355 | $ 48,398 | $ 25,647 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance (in shares) at Dec. 31, 2016 | 15,476,379 | |||
Beginning Balance at Dec. 31, 2016 | $ 391,547 | $ 156,041 | $ 249,415 | $ (13,909) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Reclassification of certain income tax effects from AOCI —ASU 2018-02 (Note 15) | 3,476 | (3,476) | ||
Net income | 28,476 | 28,476 | ||
Other comprehensive loss, net of tax | (2,829) | (2,829) | ||
Stock-based compensation expense | 1,469 | $ 1,469 | ||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit | 48,325 | |||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit | (606) | $ (606) | ||
Cash dividends declared ( $1.23, $1.15 and $0.94 per share in 2019, 2018, and 2017, respectively) | (14,644) | (14,644) | ||
Ending Balance (in shares) at Dec. 31, 2017 | 15,524,704 | |||
Ending Balance at Dec. 31, 2017 | 403,413 | $ 156,904 | 266,723 | (20,214) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 53,071 | 53,071 | ||
Other comprehensive loss, net of tax | (4,673) | (4,673) | ||
Stock-based compensation expense | 1,688 | $ 1,688 | ||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit | 67,960 | |||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit | $ (350) | $ (350) | ||
Common stock repurchased (in shares) | (750) | |||
Common stock repurchased | $ (27) | $ (27) | ||
Cash dividends declared ( $1.23, $1.15 and $0.94 per share in 2019, 2018, and 2017, respectively) | (17,962) | (17,962) | ||
Ending Balance (in shares) at Dec. 31, 2018 | 15,591,914 | |||
Ending Balance at Dec. 31, 2018 | 435,825 | $ 158,215 | 302,030 | (24,420) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 57,203 | |||
Other comprehensive loss, net of tax | 18,152 | 18,152 | ||
Stock-based compensation expense | 1,885 | $ 1,885 | ||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit | 40,857 | |||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit | $ (202) | $ (202) | ||
Common stock repurchased (in shares) | (488,052) | |||
Common stock repurchased | $ (20,795) | $ (20,795) | ||
Cash dividends declared ( $1.23, $1.15 and $0.94 per share in 2019, 2018, and 2017, respectively) | (18,907) | (18,907) | ||
Ending Balance (in shares) at Dec. 31, 2019 | 15,144,719 | |||
Ending Balance at Dec. 31, 2019 | $ 473,415 | $ 139,103 | $ 340,580 | $ (6,268) |
Consolidated Statements Of Ch_2
Consolidated Statements Of Changes In Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared, per share | $ 1.23 | $ 1.15 | $ 0.94 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities | |||
Net income | $ 57,203,000 | $ 53,071,000 | $ 28,476,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Originations of mortgage loans held for sale | (282,443,000) | (202,194,000) | (211,568,000) |
Proceeds from the sale of mortgage loans | 281,207,000 | 211,397,000 | 224,883,000 |
Gain on sale of mortgage loans, net of origination costs | (6,365,000) | (5,451,000) | (6,256,000) |
Provision for credit losses | 2,861,000 | 847,000 | 3,035,000 |
Depreciation and amortization expense | 3,891,000 | 3,765,000 | 3,761,000 |
Investment securities amortization and accretion, net | 2,997,000 | 3,206,000 | 3,122,000 |
Stock-based compensation expense | 1,885,000 | 1,688,000 | 1,469,000 |
Amortization of intangible assets | 705,000 | 725,000 | 1,809,000 |
Purchase accounting accretion, net | (1,483,000) | (2,316,000) | (2,834,000) |
(Increase) decrease in other assets | (22,405,000) | (6,679,000) | 11,190,000 |
(Decrease) increase in other liabilities | (5,182,000) | 6,275,000 | 1,247,000 |
Net cash provided by operating activities | 32,871,000 | 64,334,000 | 58,334,000 |
Investing Activities | |||
Proceeds from sales and maturities of available-for-sale securities | 355,611,000 | 189,420,000 | 154,973,000 |
Purchase of available-for-sale securities | (339,286,000) | (232,206,000) | (170,495,000) |
Proceeds from maturities of held-to-maturity securities | 0 | 750,000 | 0 |
Net increase in loans | (70,714,000) | (243,815,000) | (187,740,000) |
Purchase of bank-owned life insurance | 0 | 0 | (7,000,000) |
Purchase of Federal Home Loan Bank stock | (13,688,000) | (15,127,000) | (12,290,000) |
Proceeds from sale of Federal Home Loan Bank and Federal Reserve Bank stock | 15,645,000 | 24,864,000 | 11,823,000 |
Purchase of premises and equipment | (4,267,000) | (5,021,000) | (2,844,000) |
Proceeds from the sale of premises and equipment | 0 | 749,000 | 137,000 |
Proceeds from other investments | 0 | 1,593,000 | 0 |
Recoveries of previously charged-off loans | 310,000 | 1,944,000 | 497,000 |
Proceeds from sale of other real estate owned | 554,000 | 72,000 | 808,000 |
Net cash used by investing activities | (55,835,000) | (276,777,000) | (212,131,000) |
Financing Activities | |||
Net increase in deposits | 73,335,000 | 464,132,000 | 172,291,000 |
(Repayments of) net proceeds from borrowings less than 90 days | (2,059,000) | (270,114,000) | 36,699,000 |
Repayments of Federal Home Loan Bank long-term advances | 0 | 0 | (20,000,000) |
Repayments of wholesale repurchase agreements | 0 | 0 | (5,000,000) |
Common stock repurchases | (20,795,000) | (27,000) | 0 |
Exercise of stock options and issuance of restricted stock, net of repurchase for tax withholdings | (202,000) | (350,000) | (606,000) |
Cash dividends paid on common stock | (18,572,000) | (17,170,000) | (14,323,000) |
Finance lease payments | (106,000) | 0 | 0 |
Net cash provided by financing activities | 31,601,000 | 176,471,000 | 169,061,000 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 8,637,000 | (35,972,000) | 15,264,000 |
Cash, cash equivalents and restricted cash at beginning of year | 66,999,000 | 102,971,000 | 87,707,000 |
Cash, cash equivalents and restricted cash at end of year | 75,636,000 | 66,999,000 | 102,971,000 |
Supplemental information | |||
Interest paid | 41,374,000 | 30,177,000 | 20,774,000 |
Income taxes paid | 13,542,000 | 10,667,000 | 16,841,000 |
Transfer from loans to other real estate owned | $ 543,000 | $ 55,000 | $ 0 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Business and Summary of Significant Accounting Policies | BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Acronyms and Abbreviations. The acronyms and abbreviations identified below are used in the notes to the consolidated financial statements. The following is provided to aid the reader and provide a reference page when reviewing the notes to the consolidated financial statements. 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) HUD: U.S. Department of Housing and Urban Development ASC: Accounting Standards Codification IRS: Internal Revenue Service ASU: Accounting Standards Update LIBOR: London Interbank Offered Rate Bank: Camden National Bank, a wholly-owned subsidiary of Camden National Corporation LTIP: Long-Term Performance Share Plan BOLI: Bank-owned life insurance Management ALCO: Management Asset/Liability Committee Board ALCO: Board of Directors' Asset/Liability Committee MBS: Mortgage-backed security CCTA: Camden Capital Trust A, an unconsolidated entity formed by Camden National Corporation MSPP: Management Stock Purchase Plan CDs: Certificate of deposits N/A: Not applicable Company: Camden National Corporation N.M.: Not meaningful CMO: Collateralized mortgage obligation OCC: Office of the Comptroller of the Currency DCRP: Defined Contribution Retirement Plan OCI: Other comprehensive income (loss) EPS: Earnings per share OREO: Other real estate owned FASB: Financial Accounting Standards Board OTTI: Other-than-temporary impairment FDIC: Federal Deposit Insurance Corporation SBM: SBM Financial, Inc., the parent company of The Bank of Maine, that was acquired by Camden National Corporation FHA: Federal Housing Authority SERP: Supplemental executive retirement plans FHLB: Federal Home Loan Bank Tax Act: Tax Cuts and Jobs Act of 2017, enacted on December 22, 2017 FHLBB: Federal Home Loan Bank of Boston TDR: Troubled-debt restructured loan FHLMC: Federal Home Loan Mortgage Corporation UBCT: Union Bankshares Capital Trust I, an unconsolidated entity formed by Union Bankshares Company that was subsequently acquired by Camden National Corporation FNMA: Federal National Mortgage Association 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 General Business. Camden National Corporation, a Maine corporation (the "Company"), is the bank holding company for Camden National Bank (the "Bank") and is headquartered in Camden, Maine. The primary business of the Company is to attract deposits from, and to extend loans to, consumer, institutional, municipal, non-profit and commercial customers. The Company, through the Bank, offers commercial and consumer banking products and services, and through Camden Financial Consultants, a division of the Bank, and Camden National Wealth Management, a department of the Bank, offers brokerage and insurance services as well as investment management and fiduciary services. The Bank's deposits are insured by the FDIC, subject to regulatory limits. Principles of Consolidation . The accompanying consolidated financial statements include the accounts of the Company and the Bank (which includes the consolidated accounts of 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, 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 CCTA and UBCT. These entities are unconsolidated subsidiaries of the Company. Reclassifications . Certain reclassifications have been made to prior year amounts to conform to the current year's presentation. Use of Estimates . The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could vary from these estimates as a result of changing conditions and future events. Several estimates are particularly critical and are susceptible to significant near-term change, including the ALL, the accounting for business combinations including subsequent impairment analyses for goodwill and other intangible assets, accounting for income taxes, postretirement benefits, and asset impairment assessments, including the assessment of OTTI of investment securities. Subsequent Events . The Company has evaluated events and transactions subsequent to December 31, 2019 for potential recognition or disclosure as required by GAAP. Significant Concentration of Credit Risk. The Company makes loans primarily to customers in Maine, Massachusetts and New Hampshire. Although it has a diversified loan portfolio, a large portion of the Company's loans are secured by commercial or residential real estate and is subject to real estate market volatility within these states. Furthermore, the debtors' ability to honor their contracts is highly dependent upon other economic factors throughout Maine, Massachusetts and New Hampshire. The Company does not generally engage in non-recourse lending and typically will require the principals of any commercial borrower to obligate themselves personally on the loan. Cash, Cash Equivalents and Restricted Cash . For the purposes of reporting, cash and cash equivalents consist of cash on hand and amounts due from banks. The Company is required by the FRB to maintain cash reserves equal to a percentage of deposits. The Company maintains the reserve balances in cash on hand or at the FRB. Certain cash balances will be designated as restricted as required by certain contracts with unrelated third parties. Investments. Debt investments for which the Company has the positive intent and ability to hold to maturity are classified as HTM and recorded at amortized cost on the consolidated statements of condition. Debt investments that are not classified as HTM or trading are classified as AFS and are carried at fair value on the Company's consolidated statements of condition with subsequent changes to fair value recorded within AOCI, net of tax. For periods prior to January 1, 2018, the Company's investments in equity securities with a readily determinable fair value may have been classified as trading or AFS. The classification was determined at the time of purchase and reflected the Company's corporate goals and objectives. For such periods, equity securities with a readily determinable fair value classified as AFS were carried on the consolidated statements of condition at fair value. Subsequent changes to fair value were accounted for within AOCI, net of tax, on consolidated statements of condition. The Company did not have any equity securities with a readily determinable fair value classified as trading as of December 31, 2017. Effective January 1, 2018, upon adoption of ASU No. 2016-01, Income Statement- Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities ("ASU 2016-01"), equity investments may no longer be designated and accounted for as AFS securities, with the change in fair value recognized within AOCI, net of tax. Instead, the change in fair value of equity investments with a readily determinable fair value are to be recognized within net income and carried at fair value on the balance sheet. Upon adoption of ASU 2016-01, a cumulative-effect adjustment of $198,000 was recorded to reclassify the unrealized gain, net of tax, on the Company's equity securities with a readily determinable fair value as of January 1, 2018, previously designated as AFS, from AOCI to retained earnings. This provision of ASU 2016-01 was applied prospectively. For the year ended December 31, 2019 and 2018, the Company recorded the change in fair value for its equity securities with a readily determinable fair value within other income on the consolidated statements of income. Refer to Note 2 for further details. Management conducts a quarterly review and evaluation of its debt investments designated as AFS or HTM and, prior to the adoption of ASU 2016-01, effective January 1, 2018, conducted a quarterly review of its equity investments designated as AFS to determine if the decline in fair value of any security appeared to be other-than-temporary. The factors considered included, but were not limited to: the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, the credit ratings of the security or issuer, whether the decline in fair value appears to be issuer specific or, alternatively, a reflection of general market or industry conditions, and the Company’s intent and ability to hold the security for a period of time sufficient to allow for a recovery in fair value. For its debt investments classified as AFS or HTM that it does not intend to sell and is not more-likely-than-not will be required to sell before recovery of its amortized cost basis, the other-than-temporary decline in the fair value of the debt security related to: (i) credit loss is recognized in non-interest income on the consolidated statements of income; and (ii) other factors is recognized in AOCI, net of tax. For the Company's debt securities it intends to sell and/or more-likely-than-not will be required to sell before recovery of amortized cost, an OTTI is recorded equal to the entire difference between the debt investment's amortized cost basis and its fair value within non-interest income on the consolidated statements of income. Prior to the adoption of ASU 2016-01, for the Company's equity investments with a readily determinable fair value classified as AFS, for which the Company determined that the decline in the fair value was other-than-temporary, the Company would recognize the impairment within non-interest income on the consolidated statements of income when identified. Upon adoption of ASU 2016-01, effective January 1, 2018, the change in fair value of the Company's equity investments with a readily determinable fair value are recorded within net income and are no longer assessed for OTTI. The Company, through the Bank, is a member of the FHLBB and FRBB, and, as a member, is required to hold a certain amount of FHLBB and FRB common stock. These equity stocks are non-marketable and are outside the scope of ASU 2016-01, and are reported at cost within other investments on the consolidated statements of condition. The Company evaluates its FHLBB and FRB common stock for impairment based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. Purchase premiums and discounts are recognized in interest income on the consolidated statements of income using the interest method over the period to maturity or issuer call option date, if earlier, and are recorded on the trade date. Upon sale of an investment security, the realized gain or loss on the sale is recognized within non-interest income on the consolidated statements of income. The cost basis of our investments sold is determined using the specific identification method. Loans Held for Sale. The Company has elected the fair value option for loans classified as held for sale on the consolidated statements of condition. Designation of loans as held for sale is determined based on the Company's intent and is, typically, completed as the loans are underwritten. The fair value for loans held for sale is determined using quoted secondary market prices. Management consistently evaluates the Company's loan portfolio in conjunction with asset/liability management practices, and will opt to sell certain residential mortgage loans to manage the Company's interest rate exposure and for other business purposes, including generating fee income through mortgage sale gains. Originated Loans and Acquired Loans . Loans are reported at amortized cost, or fair value in the case of acquired loans, adjusted for any partial charge-offs and net of any deferred loan fees or costs. For originated loans, interest income is accrued based upon the daily principal amount outstanding except for loans on non-accrual status. For acquired loans, interest income is also accrued based upon the daily principal amount outstanding and is then further adjusted by the accretion of any discount or amortization of any premium associated with the loan. For originated loans, loan fees and certain direct origination costs are deferred and amortized into interest income over the contractual term of the loan using the level-yield method. When a loan is paid off, the unamortized portion is recognized in interest income. A loan is classified as non-accrual generally when it becomes 90 days past due as to interest or principal payments, or sooner if management considers such action to be prudent. All previously accrued but unpaid interest on non-accrual loans is reversed from interest income in the period in which the loan is considered delinquent and the amortization of any unamortized net deferred origination loan fees/costs stops. Interest payments received on non-accrual loans, including impaired loans, are applied as a reduction of principal. A loan remains on non-accrual status until all principal and interest amounts contractually due are brought current and future payments are reasonably assured. Should a loan transition from non-accrual status back to accrual status, the unrecognized interest earned during the period the loan was on non-accrual status and unamortized deferred origination fees and costs are recognized over the remaining contractual life of the loan using the level-yield method. ALL. The ALL is established through provisions for loan losses charged to income. Losses on loans, including impaired loans, are charged to the ALL when all or a portion of a loan is deemed to be uncollectible. Recoveries of loans previously charged off are credited to the ALL when realized. In determining the appropriate level of ALL, the Company uses a methodology to systematically measure the amount of estimated loan loss exposure inherent in the loan portfolio. The methodology includes three elements: (1) identification of loss allocations for certain specific loans, (2) loss allocation factors for certain loan types based on credit risk and loss experience, and (3) general loss allocations for other qualitative and economic factors. The allocations for specific loans is determined based on loans that have a principal balance of $500,000 or more that are classified as substandard or doubtful and are on non-accrual status. Such loans are classified as impaired and an allowance is established when the discounted expected future cash flows (or collateral value or observable market price) of the impaired loan is lower than the recorded investment of that loan. Loans that do not meet the above criteria are separated into risk pools by portfolio segment and risk ratings. The Company then evaluates each risk pool collectively for impairment through loss allocation factors. The Company uses a risk rating system for certain loan segments to determine the credit quality of these loan pools and applies the related loss allocation factors. In assessing the risk rating of a particular loan, the Company considers, among other factors, the obligor’s debt capacity, financial condition, the level of the obligor’s earnings, the amount and sources of repayment, the performance with respect to loan terms, the adequacy of collateral, the level and nature of contingent liabilities, management strength, and the industry in which the obligor operates. These factors are based on an evaluation of historical information, as well as subjective assessment and interpretation of current conditions. Emphasizing one factor over another, or considering additional factors that may be relevant in determining the risk rating of a particular loan but which are not currently an explicit part of the Company's methodology, could impact the risk rating assigned to that loan. The Company at least annually, and more frequently as deemed prudent by management, reassesses and revises the loss allocation factors used in the assignment of loss exposure to appropriately reflect the analysis of loss experience. Portfolios of more homogeneous populations of loans including home equity and consumer loans are analyzed as groups taking into account delinquency rates and other economic conditions that may affect the ability of borrowers to meet debt service requirements, including interest rates and energy costs. The Company also considers regulatory guidance, historical loss ranges, portfolio composition, and other changes in the portfolio. An additional allocation is determined based on a judgmental process whereby management considers qualitative and quantitative assessments of other environmental factors. Since the methodology is based upon historical experience and trends, as well as management’s judgment, factors may arise that result in different estimations. Significant factors that could give rise to changes in these estimates may include, but are not limited to, changes in economic conditions in the Company’s market areas, concentration of risk, declines in local property values, and regulatory guidance. Loans past due 30 days or more are considered delinquent. In general, secured loans that are delinquent for 90 consecutive days are placed on non-accrual status, and are subject to impairment and/or loss assessment in accordance with established internal policy. In general, unsecured loans that are delinquent for 90 consecutive days are charged off. In cases where a borrower experiences financial difficulties and the Company makes certain concessionary modifications to contractual terms, the loan is classified as a TDR. Modifications may include adjustments to interest rates, extensions of maturity, and other actions intended to minimize economic loss and avoid foreclosure or repossession of collateral. An allowance is established on a loan classified as a TDR if the present value of expected future cash flows (or, alternatively, the observable market price of the loan or the fair value of the collateral if the loan is collateral-dependent) is less than the recorded investment of the loan. Non-accrual loans that are restructured as TDRs remain on non-accrual status for a period of at least six months to demonstrate that the borrower can meet the restructured terms. If the restructured loan is on accrual status prior to being modified, it is reviewed to determine if the modified loan should remain on accrual status. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan is classified as a non-accrual loan. Loans classified as TDRs remain classified as such for the life of the loan, except in limited circumstances, when it is determined that the borrower is performing under the modified terms and the restructuring agreement specified an interest rate greater than or equal to an acceptable market rate for a comparable new loan at the time of the restructuring. Goodwill and Core Deposit Intangible Assets . Goodwill represents the excess cost of an acquisition over the fair value of the net assets acquired. Goodwill is not subject to amortization but rather is evaluated at least annually for impairment, or as events and circumstances dictate, at the reporting unit level. Any impairment is charged to non-interest expense on the consolidated statements of income. The Company evaluates goodwill for impairment annually as of November 30 th , or more frequently as warranted by external and/or internal factors. The Company may utilize a qualitative analysis (commonly referred to as "Step Zero") and/or a quantitative analysis to evaluate goodwill for impairment. The Company has the option to by-pass the qualitative analysis for any given year and perform the quantitative analysis. Using a qualitative analysis to assess goodwill for impairment, the Company will consider various factors to determine if it is more-likely-than-not that its carrying value of its reporting unit exceeds its fair value. These factors include, but are not limited to, the overall macro-economic environment; industry economic and regulatory environment; and company specific factors, including, but not limited to, performance, Company common stock share price, competition and/or significant changes in senior management. Should the Company determine it is more-likely-than-not that the carrying value of its reporting unit exceeds its fair value, then it would then perform the next step of the goodwill impairment test, which is a quantitative analysis. If the Company were to determine it is not more-likely-than-not that the carrying value of its reporting unit exceeds its fair value, the Company would have completed its goodwill impairment evaluation and concluded goodwill was not impaired. After performing the qualitative analysis and determining it is more-likely-than-not that the carrying value of its reporting unit exceeds its fair value or if the Company by-passed the qualitative analysis, it would perform a quantitative analysis to determine if the carrying value of its reporting unit exceeds its fair value (i.e. "Step 1"). The Company may use various valuation techniques such as a discounted cash flow model, a comparative market transaction multiple approach and/or other valuation methods, to determine the reporting unit's fair value. If the reporting unit's fair value exceeds its carrying value, then goodwill is not impaired and no further assessment is required. However, if the reporting unit's fair value is less than its carrying value, the Company would then be required to determine the fair value of tangible and identifiable intangible assets and liabilities for the reporting unit, to derive an implied fair value of goodwill (i.e. "Step 2"). If the reporting unit's implied fair value of goodwill exceeds its carrying value, then goodwill is not impaired. However, if the reporting unit's implied fair value of goodwill is less than its carrying value, an impairment charge is recorded to carry goodwill at its calculated implied fair value. The Company completed its annual goodwill impairment testing for its reporting unit as of November 30, 2019 using the qualitative analysis and it was determined that it was not more-likely-than-not that its carrying value exceeded its fair value. As such, goodwill was no t impaired as of November 30, 2019. Goodwill was tested for impairment as of November 30, 2018 and 2017 and was no t impaired. Core deposit intangible assets represents the estimated value of acquired customer relationships and is 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 management must compare the fair value of the intangible assets to its carrying value. If the fair value of the intangible assets exceeds their carrying value then the intangible assets are not impaired. If the fair value of the intangible assets is less than its carrying value then an impairment charge is recorded to mark the carrying value of the intangible assets to fair value. For the year ended December 31, 2019 , 2018 or 2017 , there were no events or changes in circumstances that indicated the carrying amount may not be recoverable. BOLI . BOLI represents the cash surrender value of life insurance policies on the lives of certain active and retired employees where the Company is the beneficiary and is recorded as an asset on the consolidated statements of condition. Increases in the cash surrender values of the policies, as well as death benefits received, net of any cash surrender value, are recorded in non-interest income on the consolidated statements of income, and are not subject to income taxes. The Company reviews the financial strength of the insurance carriers prior to the purchase of life insurance policies and no less than annually thereafter. A life insurance policy with any individual carrier is limited to 15% of Tier 1 capital (as defined for regulatory purposes) and the total cash surrender value of life insurance policies is limited to 25% of Tier 1 capital. Premises and Equipment . Premises and equipment purchased in normal course are stated at cost less accumulated depreciation, while premises and equipment obtained through the acquisition of a company or branch acquisition are stated at their estimated fair values as of the acquisition date less accumulated depreciation that occurred subsequent to the acquisition date. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the lesser of the term of the respective lease or the estimated life of the improvement. Land is carried at cost. Repairs and maintenance costs that are not an improvement or do not extend the estimated useful life of the asset are expensed as incurred. Software costs, including cloud-based software licenses that qualify as internal-use software, are stated at cost less accumulated amortization within other assets on the consolidated statements of condition. Amortization expense is calculated using the straight-line method over the estimated useful lives of the related assets. Cloud-based software costs that do not qualify as internal-use software are capitalized as service contracts within other assets on the consolidated statements of condition and expensed ratably over the term of the contract period. OREO . OREO properties acquired through foreclosure or deed-in-lieu of foreclosure are recorded initially at estimated fair value 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. Any subsequent declines in the fair value of a property are recorded as a valuation allowance on the asset. Any subsequent increases in the fair value of a property are recorded as reductions of the valuation allowance, but not below zero. At December 31, 2019 and 2018, OREO properties were carried within other assets on the consolidated statements of condition at $94,000 and $130,000, respectively. Upon a sale of an OREO property, any excess of the carrying value over the sale proceeds is recognized as a loss on sale. Any excess of sale proceeds over the carrying value of the OREO property is first applied as a recovery to the valuation allowance, if any, with the remainder being recognized as a gain on sale. Operating expenses, including legal and other direct expenses, and changes in the valuation allowance relating to foreclosed assets are included in other non-interest expense on the consolidated statements of income. Mortgage Banking . Residential real estate mortgages are originated by the Company both for its portfolio and for sale into the secondary market. The transfer of these financial assets is accounted for as a sale when control over the asset has been surrendered. Control is deemed to be surrendered when (i) the asset has been isolated from the Company, (ii) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred asset, and (iii) the Company does not maintain effective control over the transferred asset through an agreement to repurchase it before its maturity. The Company records the gain on sale of the financial asset within mortgage banking income, net on the consolidated statements of income, net of direct and indirect costs incurred to originate the loan. Servicing assets are recognized as separate assets when servicing rights are acquired through the sale of residential mortgage loans with servicing rights retained. Capitalized servicing rights are initially recorded at fair value and reported within other assets on the consolidated statements of condition and recognized as income within non-interest income on the consolidated statements of income. Servicing rights are amortized in proportion to, and over the period of, the estimated future servicing of the underlying mortgages (typically, the contractual life of the mortgage). The amortization of mortgage servicing rights is recorded as a reduction of loan servicing fee income within non-interest income on the consolidated statements of income. Servicing assets are evaluated for impairment quarterly based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant characteristics, such as interest rates and terms. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Impairment of the servicing assets is recognized through a valuation allowance to the extent that fair value is less than the capitalized amount. If it is later determined that all or a portion of the impairment no longer exists, a reduction of the allowance may be recorded increasing income, but not below zero. Servicing fee income is recorded for fees earned for servicing loans for investors. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income within non-interest income on the consolidated statements of income when earned. Short-Term and Long-Term Borrowings. Short-term borrowings are those that upon origination are scheduled to mature within one year. The Company's short-term borrowings may include, but are not limited to, FHLBB overnight and FHLBB advances, customer repurchase agreements, federal funds purchased, and line of credit advances. Long-term borrowings are those that upon origination are scheduled to mature in one or more years. The Company's long-term borrowings may include, but are not limited to, FHLBB advances, subordinated debentures, and wholesale repurchase agreements. The Company is required to post collateral for certain borrowings, for which it generally posts loans and/or investment securities as collateral. Income Taxes . Income taxes are accounted for using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax implications attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. If current information suggests that it is not more-likely than-not that the Company will not be able to realize the deferred tax assets, a valuation allowance is established. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company assesses quarterly whether or not a valuation allowance on its deferred tax assets is necessary. If it is more- likely-than-not that the Company will not be able to realize the benefit of the deferred tax assets, then a valuation allowance is established on the deferred tax asset not expected to be realized. At December 31, 2019 and 2018, the Company did not carry a valuation allowance on its deferred tax assets. The Company accounts for its windfall tax benef |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS AFS and HTM Investments The following table summarizes the amortized costs and estimated fair values of AFS and HTM securities, as of the dates indicated: (In thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value December 31, 2019 AFS Investments (carried at fair value): Obligations of states and political subdivisions $ 115,632 $ 2,779 $ (328 ) $ 118,083 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 462,593 3,398 (2,605 ) 463,386 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 325,200 3,183 (2,478 ) 325,905 Subordinated corporate bonds 10,553 191 — 10,744 Total AFS investments $ 913,978 $ 9,551 $ (5,411 ) $ 918,118 HTM Investments (carried at amortized cost): Obligations of states and political subdivisions $ 1,302 $ 57 $ — $ 1,359 Total HTM investments $ 1,302 $ 57 $ — $ 1,359 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 Securities (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 in AOCI at December 31, 2019, were $3.3 million , net of a deferred tax liability of $890,000 . 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 , respectively. 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 December 31, 2019 AFS Investments: Obligations of states and political subdivisions 11 $ 30,459 $ (328 ) $ — $ — $ 30,459 $ (328 ) Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 59 162,964 (1,850 ) 63,633 (755 ) 226,597 (2,605 ) Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 35 66,549 (733 ) 68,614 (1,745 ) 135,163 (2,478 ) Total AFS investments 105 $ 259,972 $ (2,911 ) $ 132,247 $ (2,500 ) $ 392,219 $ (5,411 ) 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 December 31, 2019 and 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 December 31, 2019 and 2018, gross unrealized losses on the Company's AFS and HTM investments were 1% and 3% , respectively, of their respective fair values. At December 31, 2019, the Company had the intent and ability to retain its debt investments that were in an unrealized loss position at December 31, 2019 , until the decline in value has recovered. Sale of AFS Investments The following table details the Company’s sales of investments for the periods indicated below: For The Year Ended December 31, (In thousands) 2019 2018 2017 Proceeds from sales of AFS investments (1) $ 207,001 $ 56,155 $ 20,366 Gross realized gains 1,427 32 869 Gross realized losses (1,532 ) (695 ) (14 ) (1) The Company had no t previously recorded any OTTI on these investments sold. AFS and HTM Investments Pledged At December 31, 2019 and 2018 , AFS and HTM investments with an amortized cost of $709.0 million and $734.1 million , respectively, and estimated fair values of $712.4 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 AFS and HTM investments by contractual maturity at December 31, 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 76,027 76,341 Due after five years through ten years 207,757 208,866 Due after ten years 630,194 632,911 $ 913,978 $ 918,118 HTM Investments Due in one year or less $ — $ — Due after one year through five years 512 532 Due after five years through ten years 790 827 Due after ten years — — $ 1,302 $ 1,359 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 December 31, 2019 Equity securities - bank stock (carried at fair value) $ 544 $ 1,130 $ — $ 1,674 FHLBB (carried at cost) 6,601 — — 6,601 FRB (carried at cost) 5,374 — — 5,374 Total other investments $ 12,519 $ 1,130 $ — $ 13,649 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 year ended December 31, 2019 and 2018, the Company recognized an unrealized gain (loss) of $928,000 and ($50,000) , 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 year ended December 31, 2017, no unrealized gain or loss was recognized as these securities were classified as AFS prior to the adoption of ASU 2016-01 in 2018. Refer to Note 1 for further details. The Company did not record any OTTI on its FHLBB and FRB stock for the year ended December 31, 2019 and 2018. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [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: December 31, (In thousands) 2019 2018 Residential real estate $ 1,070,374 $ 992,866 Commercial real estate 1,243,397 1,269,533 Commercial 421,108 381,780 Home equity 312,779 327,763 Consumer 25,772 20,624 HPFC 21,593 33,656 Total loans $ 3,095,023 $ 3,026,222 The loan balances for each portfolio segment presented above are net of their respective net unamortized fair value mark discount on acquired loans and net unamortized loan origination costs for the dates indicated: December 31, (In thousands) 2019 2018 Net unamortized fair value mark discount on acquired loans $ 2,593 $ 3,936 Net unamortized loan origination costs (3,111 ) (1,865 ) Total $ (518 ) $ 2,071 The Company'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. The HPFC loan portfolio is an acquired loan portfolio. It 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. In the normal course of business, the Company 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 do not involve more than the normal risk of collectability or present other unfavorable features. At December 31, 2019 and 2018, outstanding loans to certain officers, directors and their associated companies was less than 5% of the Company's shareholders' equity. 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. The Company completed its annual ALL policy review in the fourth quarter of 2019, and no significant changes to its ALL methodology were made. The Board of Directors monitors credit risk through the Directors' Loan Review Committee, which reviews large credit exposures, monitors external loan reviews, 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 residences, 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 including personal lines of credit and amortizing loans made to qualified individuals for various purposes such as education, auto loans, debt consolidation, personal expenses or overdraft protection. Borrower qualifications include favorable credit history combined with supportive income and collateral requirements within established policy guidelines. Consumer loans may be secured or unsecured. HPFC. Prior to the Company's closing of HPFC's operations in 2016, it provided commercial lending to dentists, optometrists and veterinarians, many of which were start-up companies. HPFC's loan portfolio consists of term loan obligations extended for the purpose of financing working capital and/or purchase of equipment. Collateral consists of pledges of business assets including, but not limited to, accounts receivable, inventory, and/or equipment. These loans are primarily paid by the operating cash flow of the borrower and the original terms ranged from seven to ten years. The following table 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 At or For the Year Ended December 31, 2019: ALL: Beginning balance $ 6,071 $ 11,654 $ 3,620 $ 2,796 $ 234 $ 337 $ 24,712 Loans charged off (462 ) (300 ) (1,167 ) (412 ) (301 ) (71 ) (2,713 ) Recoveries 16 49 225 1 19 — 310 Provision (credit) (1) 217 1,011 1,091 38 555 (50 ) 2,862 Ending balance $ 5,842 $ 12,414 $ 3,769 $ 2,423 $ 507 $ 216 $ 25,171 ALL balance attributable loans: Individually evaluated for impairment $ 364 $ 30 $ — $ 69 $ — $ — $ 463 Collectively evaluated for impairment 5,478 12,384 3,769 2,354 507 216 24,708 Total ending ALL $ 5,842 $ 12,414 $ 3,769 $ 2,423 $ 507 $ 216 $ 25,171 Loans: Individually evaluated for impairment $ 3,384 $ 402 $ 319 $ 373 $ — $ — $ 4,478 Collectively evaluated for impairment 1,066,990 1,242,995 420,789 312,406 25,772 21,593 3,090,545 Total loan balances $ 1,070,374 $ 1,243,397 $ 421,108 $ 312,779 $ 25,772 $ 21,593 $ 3,095,023 At or 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 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 loan balances $ 992,866 $ 1,269,533 $ 381,780 $ 327,763 $ 20,624 $ 33,656 $ 3,026,222 (In thousands) Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer HPFC Total At or For the Year Ended December 31, 2017: ALL: Beginning balance $ 4,160 $ 12,154 $ 3,755 $ 2,194 $ 181 $ 672 $ 23,116 Loans charged off (482 ) (124 ) (1,014 ) (434 ) (124 ) (290 ) (2,468 ) Recoveries 30 141 301 2 17 6 497 Provision (credit) (1) 1,378 (308 ) 1,129 605 159 63 3,026 Ending balance $ 5,086 $ 11,863 $ 4,171 $ 2,367 $ 233 $ 451 $ 24,171 ALL balance attributable loans: Individually evaluated for impairment $ 568 $ 1,441 $ — $ — $ — $ — $ 2,009 Collectively evaluated for impairment 4,518 10,422 4,171 2,367 233 451 22,162 Total ending ALL $ 5,086 $ 11,863 $ 4,171 $ 2,367 $ 233 $ 451 $ 24,171 Loans: Individually evaluated for impairment $ 5,171 $ 6,199 $ 1,791 $ 429 $ — $ — $ 13,590 Collectively evaluated for impairment 853,198 1,157,824 371,609 322,949 18,149 45,120 2,768,849 Total loan balances $ 858,369 $ 1,164,023 $ 373,400 $ 323,378 $ 18,149 $ 45,120 $ 2,782,439 (1) The provision (credit) for loan losses excludes any impact for the change in the reserve for unfunded commitments, which represents management's estimate of the amount required to reflect the probable inherent losses on outstanding letters of credit and unused lines of credit. The reserve for unfunded commitments was presented within accrued interest and other liabilities on the consolidated statements of condition. At December 31, 2019 , 2018 , and 2017 , the reserve for unfunded commitments was $21,000 , $22,000 and $20,000 , respectively. The following table reconciles the provision for loan losses to the provision for credit losses as presented on the consolidated statement of income for the periods indicated: For the Year Ended December 31, (In thousands) 2019 2018 2017 Provision for loan losses $ 2,862 $ 845 $ 3,026 Change in reserve for unfunded commitments (1 ) 2 9 Provision for credit losses $ 2,861 $ 847 $ 3,035 The Company focuses on maintaining a well-balanced and diversified loan portfolio. Despite such efforts, it is recognized that credit concentrations may occasionally emerge as a result of economic conditions, changes in local demand, natural loan growth and runoff. To ensure that credit concentrations can be effectively identified, all commercial and commercial real estate loans are assigned Standard Industrial Classification codes, North American Industry Classification System codes, and state and county codes. Shifts in portfolio concentrations are monitored. As of December 31, 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 concentrations exceeding 10% of the Company's total loan portfolio as of December 31, 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 table 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 December 31, 2019: Pass (Grades 1 – 6) $ 1,062,825 $ 1,196,683 $ 415,870 $ — $ — $ 20,667 $ 2,696,045 Performing — — — 310,653 25,748 — 336,401 Special Mention (Grade 7) 473 31,753 2,544 — — 89 34,859 Substandard (Grade 8) 7,076 14,961 2,694 — — 837 25,568 Non-performing — — — 2,126 24 — 2,150 Total $ 1,070,374 $ 1,243,397 $ 421,108 $ 312,779 $ 25,772 $ 21,593 $ 3,095,023 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 will 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, generally at least six months. 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 December 31, 2019: Residential real estate $ 2,297 $ 627 $ 2,598 $ 5,522 $ 1,064,852 $ 1,070,374 $ — $ 4,096 Commercial real estate 267 1,720 544 2,531 1,240,866 1,243,397 — 1,122 Commercial 548 — 417 965 420,143 421,108 — 420 Home equity 681 238 1,459 2,378 310,401 312,779 — 2,130 Consumer 108 31 23 162 25,610 25,772 — 24 HPFC — 243 288 531 21,062 21,593 — 364 Total $ 3,901 $ 2,859 $ 5,329 $ 12,089 $ 3,082,934 $ 3,095,023 $ — $ 8,156 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 for the year ended December 31, 2019 , 2018 , and 2017 is estimated to have been $420,000 , $600,000 , and $843,000 , 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. TDR loans consist of loans where the Company, for economic or legal reasons related to the borrower’s financial difficulties, granted a concession to the borrower that it would not otherwise consider. TDRs, typically, involve term modifications or a reduction of either interest or principal. Once such an obligation has been restructured, it will remain a TDR until paid in full, or until the loan is again restructured at current market rates and no concessions are granted. The specific reserve allowance was determined by discounting the total expected future cash flows from the borrower at the original loan interest rate or, if the loan is currently collateral-dependent, using 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 for the dates indicated: Number of Contracts Recorded Investment Specific Reserve (In thousands, except number of contracts) December 31, December 31, December 31, 2019 2018 2019 2018 2019 2018 Residential real estate 22 25 $ 2,869 $ 3,614 $ 364 $ 443 Commercial real estate 2 2 338 347 30 23 Commercial 2 2 123 141 — — Consumer and home equity 1 2 299 304 69 162 Total 27 31 $ 3,629 $ 4,406 $ 463 $ 628 At December 31, 2019 , the Company had performing and non-performing TDRs with a recorded investment balance of $3.0 million and $636,000 , 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 during the periods indicated: Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Specific Reserve (In thousands, except number of contracts) For the Year Ended December 31, For the Year Ended December 31, For the Year Ended December 31, For the Year Ended December 31, 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 Residential real estate: Maturity concession — — 2 $ — $ — $ 298 $ — $ — $ 298 $ — $ — $ 15 Interest rate concession — — 1 — — 134 — — 145 — — — Interest rate and maturity concession 2 2 1 64 231 148 69 254 156 15 50 30 Payment deferral — 1 — — 166 — — 166 — — 45 — Home equity: Interest rate and maturity concession — — 1 — — 315 — — 315 — — — Total 2 3 5 $ 64 $ 397 $ 895 $ 69 $ 420 $ 914 $ 15 $ 95 $ 45 As of December 31, 2019, the Company did no t have any other commitments to lend additional funds to borrowers with loans classified as TDRs. For the year ended December 31, 2019 and 2017, no loans were modified as TDRs within the previous 12 months for which the borrower subsequently defaulted. For the year ended December 31, 2018, one home equity loan with a recorded investment of $299,000 at December 31, 2018 was modified as a TDR within the previous 12 months for which the borrower subsequently defaulted. At December 31, 2018, the Company carried a specific reserve on this redefaulted TDR of $162,000 . 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 Year Ended (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2019: With related allowance recorded: Residential real estate $ 2,395 $ 2,395 $ 364 $ 2,989 $ 110 Commercial real estate 128 128 30 130 11 Commercial — — — 292 — Home equity 318 318 69 522 — Consumer — — — — — HPFC — — — — — Ending balance 2,841 2,841 463 3,933 121 Without related allowance recorded: Residential real estate 989 1,116 — 1,258 21 Commercial real estate 274 433 — 381 13 Commercial 319 685 — 238 7 Home equity 55 192 — 115 — Consumer — — — 1 — HPFC — — — — — Ending balance 1,637 2,426 — 1,993 41 Total impaired loans $ 4,478 $ 5,267 $ 463 $ 5,926 $ 162 December 31, 2018: With related 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 related 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 For the Year Ended (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2017: With related allowance recorded: Residential real estate $ 3,858 $ 3,858 $ 568 $ 3,177 $ 131 Commercial real estate 5,422 5,422 1,441 8,900 22 Commercial — — — 31 — Home equity — — — 125 — Consumer — — — — — HPFC — — — 24 — Ending balance 9,280 9,280 2,009 12,257 153 Without related allowance recorded: Residential real estate 1,313 1,673 — 1,345 15 Commercial real estate 777 1,084 — 1,132 29 Commercial 1,791 2,964 — 1,920 10 Home equity 429 495 — 310 8 Consumer — — — 2 — HPFC — — — — — Ending balance 4,310 6,216 — 4,709 62 Total impaired loans $ 13,590 $ 15,496 $ 2,009 $ 16,966 $ 215 In-Process Foreclosure Proceedings At December 31, 2019 and 2018 , the Company had $1.3 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 work 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. |
Goodwill and Core Deposit Intan
Goodwill and Core Deposit Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Other Intangible Assets [Abstract] | |
Other Intangibles Assets | GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS Goodwill At December 31, 2019 and 2018, the carrying value of goodwill was $94.7 million . There were no changes in the carrying value of goodwill for the year ended December 31, 2019 or 2018. The Company performs its annual goodwill impairment assessment as of November 30 th , and at interim periods if indicators of potential impairment exist. The Company completed its annual goodwill impairment test as of November 30, 2019 , 2018 and 2017 and determined goodwill was no t impaired. Accumulated impairment losses were $3.6 million as of December 31, 2019, 2018 and 2017. Core Deposit Intangible Assets The gross carrying amount and accumulated amortization of core deposit intangible assets were as follows at the periods indicated: December 31, 2019 2018 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Core deposit intangible $ 6,451 $ (2,926 ) $ 3,525 $ 6,451 $ (2,221 ) $ 4,230 For the year ended December 31, 2019 , 2018 and 2017 , the Company recorded amortization expense of $705,000 , $725,000 and $1.8 million , respectively. The following table reflects the amortization expense for core deposit intangible assets over the period of estimated economic benefit: (In thousands) Core Deposit Intangible 2020 $ 682 2021 655 2022 625 2023 592 2024 556 Thereafter 415 Total $ 3,525 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | PREMISES AND EQUIPMENT Details of premises and equipment, at cost, for the periods indicated, were as follows: December 31, (In thousands) 2019 2018 Buildings and leasehold improvements $ 46,856 $ 47,548 Furniture, fixtures and equipment 18,915 26,288 Land and land improvements 9,198 9,217 Total cost 74,969 83,053 Accumulated depreciation and amortization (33,133 ) (40,558 ) Net premises and equipment $ 41,836 $ 42,495 At December 31, 2019 and 2018, the Company had capitalized software costs of $2.3 million and $4.0 million , respectively, and related accumulated depreciation expense of $2.1 million and $3.7 million , respectively, and was presented within other assets on the consolidated statements of condition. Depreciation and amortization expense for the periods indicated were as follows: (In thousands) For The Year Ended December 31, Fixed Asset Type Income Statement Line Item 2019 2018 2017 Furniture and equipment Furniture, equipment and data processing $ 2,132 $ 1,938 $ 1,874 Premises Net occupancy costs 1,593 1,609 1,643 Software Furniture, equipment and data processing 166 218 244 Total $ 3,891 $ 3,765 $ 3,761 The Company did no t have any material gains or losses from the sale of premises and equipment for the year ended December 31, 2019, 2018 or 2017. |
Leases Leases
Leases Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | 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 1 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. The Company entered into a lease arrangement with two of its employees as landlords. The lease was renewed for a period of five years, expiring in 2024, at which time a five-year extension period is 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, as well as a right to terminate the lease after two years with the required notice without penalty. The Company entered into a lease agreement in 2019 to rent office space as a sub-tenant from another company in which a Company Director serves as the Chairman and Chief Executive Officer of the other company. The term of the lease is through 2022. 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: December 31, 2019 (In thousands) Balance Sheet Line Item Operating Leases Finance Leases Total Right-of-use assets Other Assets $ 13,002 $ 1,502 $ 14,504 Lease liabilities Other Liabilities 13,059 1,665 14,724 In accordance with ASC 842, the components of lease expense for the periods indicated were as follows: (In thousands) For the Year Ended December 31, 2019 Lease Cost: Operating lease cost (1) $ 1,480 Finance lease cost: Amortization of right-of-use assets 110 Interest on lease liabilities (2) 68 Total finance lease cost 178 Total Lease Cost (3) $ 1,658 (1) Includes immaterial short-term and variable lease costs, but excludes common area maintenance costs. (2) Includes immaterial variable lease costs. (3) Reported within net occupancy costs on the consolidated statements of income. In accordance with ASC 840, rent expense, excluding common area maintenance expense, for the year ended December 31, 2018 and 2017 was $1.3 million and was reported within net occupancy costs on the consolidated statements of income. Supplemental cash flow information and non-cash activity related to leases was as follows for the period indicated: (In thousands) For the Year Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,394 Operating cash flows from finance leases 68 Financing cash flows from finance leases 106 Right-of-use assets obtained in exchange for new lease obligations: Operating leases (1) $ 14,030 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 as of the date indicated: December 31, 2019 Weighted average remaining lease term (years): Operating leases 15.2 years Finance leases 22.4 years Weighted average discount rate: Operating leases 3.39 % Finance leases 4.00 % The following summarizes the remaining scheduled future minimum lease payments for operating and finance leases as of December 31, 2019: (In thousands) Operating Leases Finance Leases 2020 $ 1,452 $ 174 2021 1,374 174 2022 1,363 174 2023 1,239 174 2024 1,200 174 Thereafter 10,342 1,922 Total minimum lease payments 16,970 2,792 Less: amount representing interest (1) 3,911 1,127 Present value of net minimum lease payments (2) $ 13,059 $ 1,665 (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 December 31, 2019, the Company had executed a building lease that it anticipates will commence in the first quarter of 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. |
Lessee, Finance Leases [Text Block] | 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 1 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. The Company entered into a lease arrangement with two of its employees as landlords. The lease was renewed for a period of five years, expiring in 2024, at which time a five-year extension period is 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, as well as a right to terminate the lease after two years with the required notice without penalty. The Company entered into a lease agreement in 2019 to rent office space as a sub-tenant from another company in which a Company Director serves as the Chairman and Chief Executive Officer of the other company. The term of the lease is through 2022. 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: December 31, 2019 (In thousands) Balance Sheet Line Item Operating Leases Finance Leases Total Right-of-use assets Other Assets $ 13,002 $ 1,502 $ 14,504 Lease liabilities Other Liabilities 13,059 1,665 14,724 In accordance with ASC 842, the components of lease expense for the periods indicated were as follows: (In thousands) For the Year Ended December 31, 2019 Lease Cost: Operating lease cost (1) $ 1,480 Finance lease cost: Amortization of right-of-use assets 110 Interest on lease liabilities (2) 68 Total finance lease cost 178 Total Lease Cost (3) $ 1,658 (1) Includes immaterial short-term and variable lease costs, but excludes common area maintenance costs. (2) Includes immaterial variable lease costs. (3) Reported within net occupancy costs on the consolidated statements of income. In accordance with ASC 840, rent expense, excluding common area maintenance expense, for the year ended December 31, 2018 and 2017 was $1.3 million and was reported within net occupancy costs on the consolidated statements of income. Supplemental cash flow information and non-cash activity related to leases was as follows for the period indicated: (In thousands) For the Year Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,394 Operating cash flows from finance leases 68 Financing cash flows from finance leases 106 Right-of-use assets obtained in exchange for new lease obligations: Operating leases (1) $ 14,030 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 as of the date indicated: December 31, 2019 Weighted average remaining lease term (years): Operating leases 15.2 years Finance leases 22.4 years Weighted average discount rate: Operating leases 3.39 % Finance leases 4.00 % The following summarizes the remaining scheduled future minimum lease payments for operating and finance leases as of December 31, 2019: (In thousands) Operating Leases Finance Leases 2020 $ 1,452 $ 174 2021 1,374 174 2022 1,363 174 2023 1,239 174 2024 1,200 174 Thereafter 10,342 1,922 Total minimum lease payments 16,970 2,792 Less: amount representing interest (1) 3,911 1,127 Present value of net minimum lease payments (2) $ 13,059 $ 1,665 (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 December 31, 2019, the Company had executed a building lease that it anticipates will commence in the first quarter of 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. |
Mortgage Banking
Mortgage Banking | 12 Months Ended |
Dec. 31, 2019 | |
Transfers and Servicing [Abstract] | |
Mortgage Banking | MORTGAGE BANKING Loans Sold For the year ended December 31, 2019, 2018 and 2017, the Company sold $271.8 million , $205.9 million and $218.6 million , respectively, of residential mortgage loans on the secondary market, which resulted in a net gain on sale of loans (net of costs, including direct and indirect origination costs) of $6.4 million , $5.5 million , and $6.3 million , respectively. Loans Held for Sale At December 31, 2019 and 2018, the Company had identified and designated loans with an unpaid principal balance of $11.9 million and $4.3 million , respectively, as held for sale. The Company has elected the fair value option of accounting for its loans designated as held for sale, and, at December 31, 2019 and 2018, the unrealized (loss) gain recorded was ($61,000) and $89,000 , respectively. The unrealized gain or loss on its loans held for sale portfolio was driven by changes in market interest rates and not due to deteriorated credit quality as this risk is mitigated by the short duration between the time of loan closing and transfer of the financial assets to the secondary market investor. Included within the Company's mortgage banking income, net on the consolidated statements of income for the year ended December 31, 2019, 2018 and 2017 was the change in unrealized (losses) gains on loans held for sale of ($150,000) , $52,000 and $326,000 , respectively. The Company mitigates its interest rate exposure on its loans designated as held for sale through forward delivery commitments with certain approved secondary market investors at the onset of the mortgage origination process, typically on a "best-efforts" basis. For the year ended December 31, 2019, 2018 and 2017, net unrealized gains (losses) from the change in fair value on its forward delivery commitments were $282,000 , ($127,000) , and ($136,000) , respectively. Refer to Note 12 for further discussion of the Company's forward delivery commitments. Servicing Assets At December 31, 2019 and 2018, the Company's unpaid principal balances on its servicing assets were $227.8 million and $235.4 million, respectively. For the year ended December 31, 2019, 2018 and 2017, the Company recorded servicing fee income for its servicing assets of $898,000 , $949,000 and $1.0 million , respectively, and was presented in mortgage banking income, net on the consolidated statements of income. The Company's servicing assets, net of a valuation allowance, at December 31, 2019 and 2018 was $877,000 and $831,000 , respectively. Servicing assets, net of a valuation allowance, are presented in other assets on the consolidated statements of condition. The Company obtains third party valuations of its servicing assets portfolio quarterly. The servicing assets valuation is based on loan level data stratified by note rate of the underlying loans to determine its amortization and fair value. A discounted cash flow model is used to value each servicing asset strata and it incorporates current market assumption commonly used by buyers of these types of mortgage production in U.S. servicing markets. The calculated valuation using the discounted cash flow method is then compared to recent servicing trades on portfolios with similar characteristics in the U.S. The valuation model utilizes a variety of assumptions, the most significant of which are loan prepayment assumptions and the discount rate used to discount future cash flows. At December 31, 2019 and 2018 , the prepayment assumption used within the valuation model was 14.4% and 11.5% , respectively, and the discount rate was 11.2% and 11.1% . The estimated effect of a 10% and 20% increase to the prepayment assumption at December 31, 2019 was a decrease of $65,000 and $126,000 , respectively, while a 100 and 200 basis point increase to the discount rate assumption was a decrease of $47,000 and $90,000 . Other assumptions include, but are not limited to, delinquency rates, foreclosure rates, and loan servicing cost. The following summarizes servicing assets capitalized and amortized, along with the activity in the related valuation allowance as of and for the periods indicated: As Of and For The Year Ended December 31, (In thousands) 2019 2018 2017 Servicing Assets: Balance at beginning of year $ 831 $ 1,025 $ 1,210 Capitalized servicing right fees upon sale (1) 263 — 22 Amortization charged against mortgage servicing fee income (2) (216 ) (200 ) (430 ) Valuation adjustment (1 ) 6 223 Balance at end of year $ 877 $ 831 $ 1,025 Valuation Allowance: Balance at beginning of year $ (1 ) $ (7 ) $ (230 ) (Increase) decrease in impairment reserve (1 ) 6 223 Balance at end of year $ (2 ) $ (1 ) $ (7 ) Fair value, beginning of year $ 1,677 $ 1,766 $ 1,701 Fair value, end of year $ 1,496 $ 1,677 $ 1,766 (1) Associated income was reported within mortgage banking income, net on the consolidated statements of income. (2) Associated amortization expense was reported within mortgage banking income, net on the consolidated statements of income. Servicer and Sub-Servicer Net Worth and Liquidity Requirements The Bank, as a servicer and sub-servicer of loans, must maintain certain net worth and liquidity requirements for certain secondary market investors, including HUD, FNMA and FHLMC. The Bank is required to maintain a minimum net worth of $1.0 million plus 1.0% of total FHA loans exceeding $25.0 million ("minimum net worth required") and maintain liquid assets equal to at least 20.0% of its minimum net worth required. The Bank is required to maintain a minimum net worth of $2.5 million plus 25 basis points of the unpaid principal balance of serviced loans and must meet the minimum regulatory capital requirement to be classified as "well capitalized" by both FNMA and FHLMC. Should the Bank fail to maintain the net worth and liquidity requirements above, the secondary market investor may take remedial action and the Company may lose the right to service the loans, which may result in an impairment of its servicing assets and/or loss of revenue but would not materially affect the Company's consolidated financial statements. At December 31, 2019 and 2018, the Bank met all of the aforementioned minimum net worth, regulatory capital, and liquidity requirements. Refer to Note 14 for further details of the Company and Bank's regulatory capital requirements at December 31, 2019 and 2018. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposits | DEPOSITS The following is a summary of scheduled maturities of CDs, including retail and brokered deposits, as of the dates indicated: December 31, (In thousands) 2019 2018 1 year or less $ 474,530 $ 461,207 Over 1 year to 2 years 61,100 123,397 Over 2 years to 3 years 21,682 35,235 Over 3 years to 4 years 14,211 20,045 Over 4 years to 5 years 18,993 15,368 Over 5 years 5,033 6,029 Total $ 595,549 $ 661,281 CDs issued in amounts that meet or exceed the FDIC insurance limit of $250,000 totaled $176.0 million and $111.1 million at December 31, 2019 and 2018 , respectively. The Company has pledged assets as collateral covering certain deposits in the amount of $471.2 million and $443.1 million at December 31, 2019 and 2018, respectively. The amount of overdraft deposits that were reclassified as loans at December 31, 2019 and 2018 was $889,000 and $1.1 million , respectively. At December 31, 2019 and 2018, deposits from certain officers, directors and their associated companies in the normal course of business, were less than 5% of the Company's shareholders' equity. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | BORROWINGS The following table summarizes the Company's short-term borrowings, long-term borrowings and subordinated debentures as presented on the consolidated statements of condition for the dates indicated: December 31, 2019 Contractual Maturity December 31, 2018 (Dollars in thousands) Outstanding Balance Weighted Average Contract Rate 2020 2021 2022 2023 2024 Thereafter Outstanding Balance Weighted Average Contract Rate Short-Term Borrowings: FHLBB borrowings $ 25,000 $ 25,000 $ — $ — $ — $ — $ — $ 25,000 Customer repurchase agreements 237,984 237,984 — — — — — 245,868 FHLBB and correspondent bank overnight borrowings 5,825 5,825 — — — — — — Total short-term borrowings $ 268,809 1.28 % $ 268,809 $ — $ — $ — $ — $ — $ 270,868 1.43 % Long-Term Borrowings: FHLBB borrowings $ 10,000 1.87 % $ 10,000 $ — $ — $ — $ — $ — $ 10,000 1.87 % Capital lease obligation (1) — — — — — — — — 1,580 4.20 % Total long-term borrowings $ 10,000 1.87 % $ 10,000 $ — $ — $ — $ — $ — $ 11,580 2.19 % Subordinated Debentures: Subordinated debentures (2) $ 14,749 5.50 % $ — $ — $ — $ — $ — $ 14,749 $ 14,634 5.50 % CCTA 36,083 5.50 % — — — — — 36,083 36,083 5.38 % UBCT 8,248 4.45 % — — — — — 8,248 8,350 4.14 % Total subordinated debentures $ 59,080 5.35 % $ — $ — $ — $ — $ — $ 59,080 $ 59,067 5.23 % (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 1 and 6 for further information. (2) The outstanding balance of subordinated debentures was presented net of debt issuance costs of $251,000 and $366,000 at December 31, 2019 and 2018, respectively. FHLBB Borrowings The terms of the Company's outstanding FHLBB borrowings, including overnight funding, were as follows as of the dates indicated: December 31, (Dollars in thousands) 2019 2018 Stated Maturity Outstanding Balance Weighted Average Contractual Rate Outstanding Balance Weighted Average Contractual Rate January 2019 $ — — $ 25,000 2.71 % January 2020 30,825 1.79 % — — April 2020 10,000 1.87 % 10,000 1.87 % Total $ 40,825 $ 35,000 The Company's outstanding FHLBB borrowings at December 31, 2019 and 2018 did not contain any call options. FHLBB borrowings 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 $1.4 billion and $1.1 billion at December 31, 2019 and 2018 . The carrying value of investment securities pledged as collateral at the FHLBB was $150,000 and $172,000 at December 31, 2019 and 2018 , respectively. Subordinated Debentures The Company issued $15.0 million of subordinated debt on October 8, 2015, which qualifies as Tier 2 regulatory capital. The interest rate on the subordinated debt is 5.50% per annum, fixed for the ten -year term and payable semi-annually on April 15 and October 15 each year. The Company can redeem the subordinated debt at par starting on October 15, 2020 plus accrued and unpaid interest, or earlier if (i) they no longer qualify as Tier 2 capital for regulatory capital purposes; (ii) a change in law that prevents the Company from deducting interest payable for U.S. federal income tax purposes, or (iii) the Company is required to register as an investment company pursuant to the Investment Company Act of 1940. The subordinated debt is scheduled to mature on October 15, 2025 . The Company incurred certain costs associated with the issuance of $15.0 million of subordinated debt. The Company capitalized these costs and they have been presented within subordinated debentures on the consolidated statements of condition. At December 31, 2019 and 2018, net debt issuance costs were $251,000 and $366,000 , respectively. Debt issuance costs amortize over the expected life of the related debt. For the year ended December 31, 2019 and 2018 the amortization expense for debt issuance costs were $115,000 and $54,000 , respectively, and were recognized as an increase to interest expense within the consolidated statements of income. In April 2006, the Company formed CCTA, which issued and sold trust preferred securities to the public. The Company received $36.1 million from the issuance of the trust preferred securities in return for junior subordinated debentures issued by the Company to CCTA. The Company owns all of the $1.1 million of outstanding common securities of CCTA and was presented within other assets on the consolidated statements of condition. The contract interest rate of the trust preferred securities is three-month LIBOR plus 140 basis points. At December 31, 2019 and 2018, the interest rate on the trust preferred securities was 3.36% and 4.20% , respectively. The proceeds from the offering were used to repurchase Company common stock under the tender offer completed in May 2006. The trust preferred securities, which pay interest quarterly at the same rate as the junior subordinated debentures held by CCTA, are mandatorily redeemable on June 30, 2036, or may be redeemed by CCTA at par at any time. In connection with an acquisition in 2008, the Company assumed $8.0 million of trust preferred securities, held through a Delaware trust affiliate, UBCT. In 2006, an aggregate principal amount of $8.2 million of 30 -year junior subordinated debt securities were issued to UBCT. The Company owns all of the $248,000 of outstanding common securities of UBCT, and was presented within other assets on the consolidated statements of condition. The Company is obligated to pay interest on their principal sum quarterly. The contract interest rate of the trust preferred securities is the average three-month LIBOR plus 1.42%. At December 31, 2019 and 2018, the interest rate on the trust preferred securities was 3.41% and 3.86% , respectively. The debt securities mature on April 7, 2036, but may be redeemed by the Company at par, in whole or in part, on any interest payment date. The debt securities may also be redeemed by the Company in whole or in part, within 90 days of the occurrence of certain special redemption events. CCTA and UBCT are Delaware statutory trusts created for the sole purpose of issuing trust preferred securities and investing the proceeds in junior subordinated debentures of the Company. The junior subordinated debentures are the sole assets of the trusts. The Company is the owner of all of the common securities of CCTA and UBCT and fully and unconditionally guarantees each trust’s securities obligations. In accordance with GAAP, CCTA and UBCT are treated as unconsolidated subsidiaries. The common stock investment in the statutory trusts is included in other assets on the consolidated statements of condition. At December 31, 2019 , $43.0 million of the trust preferred securities were included in the Company’s total Tier 1 capital and amounted to 10.3% of Tier 1 capital of the Company. The Company has a notional amount of $43.0 million in interest rate swap agreements on its junior subordinated debentures. Further discussion on the terms and accounting for the interest rate swap agreements is included within Note 12 of the consolidated financial statements. Interest expense on the subordinated debentures, including the effective portion of the associated interest rate swaps on these debt instruments reclassified from OCI into earnings, totaled $3.3 million , $3.4 million , and $3.4 million for the year ended December 31, 2019 , 2018 and 2017 , respectively. Refer to Note 12 of the consolidated financial statements for information pertaining to the reclassification of OCI into earnings on the interest rate swaps. Credit Lines At December 31, 2019, the Company has the following lines of credit available to it, for which it had no outstanding balances: • The Bank had an available line of credit with the FHLBB of $9.9 million at December 31, 2019 and 2018 . This line of credit serves as overdraft protection should the Company overdraw its account with the FHLBB. The interest rate for this line of credit is set daily by the FHLBB. • The Company has an unsecured $10.0 million line of credit with PNC Bank that has a maturity date of December 18, 2020 for which the interest rate is LIBOR-based and is set daily by PNC Bank. • The Company, through the Bank, has an unsecured $50.0 million line of credit with PNC Bank for which the interest rate is set daily by PNC Bank. • The Company, through the Bank, has a secured line of credit of $114.7 million through the FRB's Discount Window for which the interest rate is set by the FRB daily. At December 31, 2019, the Bank pledged commercial loans with a carrying value of $161.5 million and investment securities of $13,000 . |
Repurchase Agreements
Repurchase Agreements | 12 Months Ended |
Dec. 31, 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 substantially identical security on a specified later date, at a greater price than the original sales price. The difference between the sale price and purchase price is the cost of the proceeds, which is recorded as interest expense on the consolidated statement of income. The securities underlying the agreements are delivered to counterparties as security for the repurchase obligations. Since the securities are treated as collateral and the agreement does not qualify for a full transfer of effective control, the transactions do not meet the criteria to be classified as sales, and are therefore considered secured borrowing transactions 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 tables below sets forth information regarding the Company’s repurchase agreements accounted for as secured borrowings allocated by source of collateral as of the dates indicated: December 31, (In thousands) 2019 2018 Customer Repurchase Agreements (1)(2) : Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises $ 118,969 $ 118,823 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 117,654 125,590 Obligations of states and political subdivisions 1,361 1,455 Total $ 237,984 $ 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 December 31, 2019 and 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 and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments 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 Company's contractual off-balance sheet commitments for the dates indicated: December 31, (In thousands) 2019 2018 Commitments to extend credit $ 734,649 $ 654,575 Standby letters of credit 5,211 3,063 Total $ 739,860 $ 657,638 The Company’s commitments to extend credit from its lending activities 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 commitments 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, $274.6 million and $270.8 million were unconditionally cancellable by the Company at December 31, 2019 and 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. Legal Contingencies In the normal course of business, the Company and its subsidiaries are subject to pending and threatened litigation, claims investigations and legal and administrative cases and proceedings. Although the Company is not able to predict the outcome of such actions, after reviewing pending and threatened actions with counsel, management believes that, based on the information currently available, the outcome of such actions, individually or in the aggregate, will not have a material adverse effect on the Company’s consolidated financial statements. Reserves are established for legal claims only when losses associated with the claims are judged to be probable, and the loss can be reasonably estimated. Assessments of litigation exposure are difficult because they involve inherently unpredictable factors including, but not limited to: whether the proceeding is in the early stages; whether damages are unspecified, unsupported, or uncertain; whether there is a potential for punitive or other pecuniary damages; whether the matter involves legal uncertainties, including novel issues of law; whether the matter involves multiple parties and/or jurisdictions; whether discovery has begun or is not complete; whether meaningful settlement discussions have commenced; and whether the lawsuit involves class allegations. 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. Assessments of class action litigation, which is generally more complex than other types of litigation, are particularly difficult, especially in the early stages of the proceeding when it is not known whether a class will be certified or how a potential class, if certified, will be defined. As a result, we may be unable to estimate reasonably possible losses with respect to every litigation matter we face. As of December 31, 2019 and 2018 , the Company did no t have any material loss contingencies that were provided for and/or that are required to be disclosed. |
Derivatives and Hedging Derivat
Derivatives and Hedging Derivatives and Hedging | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | DERIVATIVES AND HEDGING 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 associated with these derivative financial instruments through collateral, credit approvals and monitoring procedures. Derivative financial instruments are carried at fair value on the consolidated statements of condition. The accounting for changes in the fair value of a derivative instrument is dependent upon whether or not it has been designated as a hedge for accounting purposes and, if so, the type of hedge it has been designated as. The changes in fair value of the Company's derivative instruments not designated as hedges are accounted for within the consolidated statements of income. Quarterly, in conjunction with financial reporting, each cash flow hedge is assessed for ineffectiveness. To the extent 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. Derivatives Not Designated as Hedges Customer Loan Swaps The Company 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 simultaneously entering into an arrangement with a counterparty to swap the fixed rate to a variable rate to manage interest rate exposure effectively. As the interest rate swap agreements have substantially equivalent and offsetting terms, they do not materially change the Company's interest rate risk or present any material exposure to its consolidated statements of income. Customer loan swaps are presented 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 each party for the dates indicated: December 31, 2019 2018 (In thousands, except number of positions) 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 10 $ 45,243 $ (514 ) 57 $ 297,624 $ (7,841 ) Receive fixed, pay variable Other assets 75 366,351 17,756 25 118,891 3,467 Pay fixed, receive variable (Accrued interest and other liabilities)/other assets 85 411,594 (17,242 ) 82 416,515 4,374 Total 170 $ 823,188 $ — 164 $ 833,030 $ — The Company mitigates its customer counterparty credit risk exposure through its loan policy and underwriting process, which includes credit approval limits, monitoring procedures, and obtaining collateral, where appropriate. The Company mitigates its institutional counterparty credit risk exposure by limiting the institutions for which it will enter into interest swap arrangements through an approved listing by its Board of Directors. The Company has entered into a master netting arrangement with its institutional counterparty and settles payments with the counterparty as necessary. The Company's arrangement with its institutional counterparty requires it to post cash or other assets as collateral for its contracts in a net liability position based on their aggregate fair value and the Company's credit rating. The Company may also receive cash collateral for contracts in a net asset position as requested. At December 31, 2019, the Company posted $18.4 million of cash as collateral and it was presented within other assets on the consolidated statements of condition. At December 31, 2018, the institutional counterparty posted $5.1 million of cash as collateral and it was presented within interest-bearing deposits in other banks as restricted cash with a matching liability within accrued interest and other liabilities on the consolidated statements of condition. Refer to Note 13 for further discussion of master netting arrangements and presentation within the Company's consolidated financial statements. Fixed-Rate Mortgage Interest Rate Locks Commitments As part of the origination process of a residential loan, the Company may enter into rate lock agreements with its borrower, which is considered an interest rate lock commitment. If the Company intends 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: December 31, 2019 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 $ 27,087 $ 480 $ 8,239 $ 95 Fixed-rate mortgage interest rate locks Accrued interest and other liabilities 2,519 (18 ) 3,838 (28 ) Total $ 29,606 $ 462 $ 12,077 $ 67 For the year ended December 31, 2019, 2018 and 2017, the net unrealized gain (loss) from the change in fair value on the Company's fixed-rate mortgage rate locks reported within mortgage banking income, net, on the consolidated statements of income was $395,000 , ($218,000) , and $98,000 , respectively. 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 has been 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 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: December 31, 2019 2018 (In thousands) Presentation on Consolidated Statements of Condition Notional Amount Fair Value Notional Amount Fair Value Forward delivery commitments ("best effort") Other assets $ 10,846 $ 312 $ 2,593 $ 32 Forward delivery commitments ("best effort") Accrued interest and other liabilities 1,069 (15 ) 1,722 (17 ) Total $ 11,915 $ 297 $ 4,315 $ 15 For the year ended December 31, 2019, 2018 and 2017, the net unrealized gain (loss) from the change in fair value on the Company's forward delivery commitments reported within mortgage banking income, net on the consolidated statements of income were $282,000 , ($127,000) , and ($136,000) , respectively. Derivatives Designated as Hedges Interest Rate Swap on Loans On June 12, 2019, the Company 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 its institutional counterparty and settles payments monthly on a net basis. The arrangement with the institutional 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 institutional counterparty will post collateral to the Company as requested. At December 31, 2019, the institutional counterparty posted $560,000 of cash as collateral, which was presented within interest-bearing deposits in other banks as restricted cash with a matching liability within accrued interest and other liabilities on the consolidated statements of condition. Refer to Note 13 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) December 31, 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 $ 483 For the year ended December 31, 2019, the Company did no t record any ineffectiveness within the consolidated statements of income. Net payments paid to the institutional counterparty for the year ended December 31, 2019 were $214,000 , and were classified as cash flows from operating activities in the Company's consolidated statements of cash flow. Junior Subordinated Debt Interest Rate Swaps The Company entered into five interest rate swap agreements with an institutional counterparty to manage interest rate risk associated with the Company's variable rate borrowings. The Company has entered into a master netting arrangement with its institutional counterparty and settles payments 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 aggregate fair value and the Company’s credit rating. If the interest rate swaps are in a net asset position based on their aggregate fair value, the institutional counterparty will post collateral to the Company as requested. At December 31, 2019 and 2018, the Company posted $8.8 million and $5.8 million , respectively, of cash as collateral to the institutional counterparty, which is presented within other assets on the consolidated statements of condition. Refer to Note 13 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: December 31, (Dollars in thousands) 2019 2018 Trade Date Maturity Date Variable Index Received Fixed Rate Paid 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 $ (299 ) $ 10,000 $ (272 ) 7/8/2009 6/30/2029 3-Month USD LIBOR 5.84% Accrued interest and other liabilities 10,000 (2,318 ) 10,000 (1,655 ) 5/6/2010 6/30/2030 3-Month USD LIBOR 5.71% Accrued interest and other liabilities 10,000 (2,384 ) 10,000 (1,636 ) 3/14/2011 3/30/2031 3-Month USD LIBOR 4.35% Accrued interest and other liabilities 5,000 (1,279 ) 5,000 (877 ) 5/4/2011 7/7/2031 3-Month USD LIBOR 4.14% Accrued interest and other liabilities 8,000 (1,907 ) 8,000 (1,242 ) $ 43,000 $ (8,187 ) $ 43,000 $ (5,682 ) For the year ended December 31, 2019, 2018 and 2017, the Company did no t record any ineffectiveness on these cash flow hedges within the consolidated statements of income. Net payments to the institutional counterparty for the year ended December 31, 2019, 2018 and 2017 were $738,000 , $889,000 and $1.3 million , respectively, and were classified as cash flows from operating activities in the consolidated statements of cash flows. FHLBB Advance Interest Rate Swaps On February 25, 2015, the Bank entered into two $25.0 million one-year forward-starting interest rate swap arrangements with an institutional counterparty to mitigate short-term interest rate risk. On February 25, 2019 the last $25.0 million tranche matured. The details of the FHLBB advance interest rate swaps for the dates indicated were as follows: December 31, (Dollars in thousands) 2019 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 institutional counterparty for the year ended December 31, 2018 were $58,000 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 Year Ended (In thousands) 2019 2018 2017 Derivatives designated as cash flow hedges Effective portion of unrealized losses recognized within AOCI during the period, net of tax $ (2,334 ) $ 837 $ (248 ) Net reclassification adjustment for effective portion of cash flow hedges included in interest expense, gross $ 921 $ 831 $ 1,592 The Company expects approximately $833,000 (pre-tax) to be reclassified to interest expense from OCI, related to the Company’s cash flow hedges, in the next 12 months. This reclassification is due to anticipated payments that will be made and/or received on the swaps based upon the forward curve as of December 31, 2019 . BALANCE SHEET OFFSETTING The Company does not offset the carrying value for derivative instruments or repurchase agreements on the consolidated statements of condition. The Company does 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 10 for further discussion of repurchase agreements and Note 12 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 consolidated statements of condition, 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 December 31, 2019 Derivative assets: Customer loan swaps - commercial customer (2) $ 17,756 $ — $ 17,756 $ — $ — $ 17,756 Interest rate swap on loans 483 — 483 — (483 ) — Total $ 18,239 $ — $ 18,239 $ — $ (483 ) $ 17,756 Derivative liabilities: Customer loan swaps - dealer bank $ 17,242 $ — 17,242 $ — $ 17,242 $ — Junior subordinated debt interest rate swaps 8,187 — 8,187 — 8,187 — Customer loan swaps - commercial customer (2) 514 — 514 — — 514 Total $ 25,943 $ — $ 25,943 $ — $ 25,429 $ 514 Customer repurchase agreements $ 237,984 $ — $ 237,984 $ 237,984 $ — $ — December 31, 2018 Derivative assets: Customer loan swaps - dealer bank $ 4,374 $ — $ 4,374 $ — $ (4,374 ) $ — Customer loan swaps - commercial customer (2) 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 (2) 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. (2) The Company manages its net exposure on its commercial customer loan swaps by obtaining collateral as part of the normal loan policy and underwriting practices. |
Balance Sheet Offsetting
Balance Sheet Offsetting | 12 Months Ended |
Dec. 31, 2019 | |
Offsetting [Abstract] | |
Balance Sheet Offsetting | DERIVATIVES AND HEDGING 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 associated with these derivative financial instruments through collateral, credit approvals and monitoring procedures. Derivative financial instruments are carried at fair value on the consolidated statements of condition. The accounting for changes in the fair value of a derivative instrument is dependent upon whether or not it has been designated as a hedge for accounting purposes and, if so, the type of hedge it has been designated as. The changes in fair value of the Company's derivative instruments not designated as hedges are accounted for within the consolidated statements of income. Quarterly, in conjunction with financial reporting, each cash flow hedge is assessed for ineffectiveness. To the extent 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. Derivatives Not Designated as Hedges Customer Loan Swaps The Company 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 simultaneously entering into an arrangement with a counterparty to swap the fixed rate to a variable rate to manage interest rate exposure effectively. As the interest rate swap agreements have substantially equivalent and offsetting terms, they do not materially change the Company's interest rate risk or present any material exposure to its consolidated statements of income. Customer loan swaps are presented 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 each party for the dates indicated: December 31, 2019 2018 (In thousands, except number of positions) 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 10 $ 45,243 $ (514 ) 57 $ 297,624 $ (7,841 ) Receive fixed, pay variable Other assets 75 366,351 17,756 25 118,891 3,467 Pay fixed, receive variable (Accrued interest and other liabilities)/other assets 85 411,594 (17,242 ) 82 416,515 4,374 Total 170 $ 823,188 $ — 164 $ 833,030 $ — The Company mitigates its customer counterparty credit risk exposure through its loan policy and underwriting process, which includes credit approval limits, monitoring procedures, and obtaining collateral, where appropriate. The Company mitigates its institutional counterparty credit risk exposure by limiting the institutions for which it will enter into interest swap arrangements through an approved listing by its Board of Directors. The Company has entered into a master netting arrangement with its institutional counterparty and settles payments with the counterparty as necessary. The Company's arrangement with its institutional counterparty requires it to post cash or other assets as collateral for its contracts in a net liability position based on their aggregate fair value and the Company's credit rating. The Company may also receive cash collateral for contracts in a net asset position as requested. At December 31, 2019, the Company posted $18.4 million of cash as collateral and it was presented within other assets on the consolidated statements of condition. At December 31, 2018, the institutional counterparty posted $5.1 million of cash as collateral and it was presented within interest-bearing deposits in other banks as restricted cash with a matching liability within accrued interest and other liabilities on the consolidated statements of condition. Refer to Note 13 for further discussion of master netting arrangements and presentation within the Company's consolidated financial statements. Fixed-Rate Mortgage Interest Rate Locks Commitments As part of the origination process of a residential loan, the Company may enter into rate lock agreements with its borrower, which is considered an interest rate lock commitment. If the Company intends 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: December 31, 2019 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 $ 27,087 $ 480 $ 8,239 $ 95 Fixed-rate mortgage interest rate locks Accrued interest and other liabilities 2,519 (18 ) 3,838 (28 ) Total $ 29,606 $ 462 $ 12,077 $ 67 For the year ended December 31, 2019, 2018 and 2017, the net unrealized gain (loss) from the change in fair value on the Company's fixed-rate mortgage rate locks reported within mortgage banking income, net, on the consolidated statements of income was $395,000 , ($218,000) , and $98,000 , respectively. 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 has been 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 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: December 31, 2019 2018 (In thousands) Presentation on Consolidated Statements of Condition Notional Amount Fair Value Notional Amount Fair Value Forward delivery commitments ("best effort") Other assets $ 10,846 $ 312 $ 2,593 $ 32 Forward delivery commitments ("best effort") Accrued interest and other liabilities 1,069 (15 ) 1,722 (17 ) Total $ 11,915 $ 297 $ 4,315 $ 15 For the year ended December 31, 2019, 2018 and 2017, the net unrealized gain (loss) from the change in fair value on the Company's forward delivery commitments reported within mortgage banking income, net on the consolidated statements of income were $282,000 , ($127,000) , and ($136,000) , respectively. Derivatives Designated as Hedges Interest Rate Swap on Loans On June 12, 2019, the Company 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 its institutional counterparty and settles payments monthly on a net basis. The arrangement with the institutional 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 institutional counterparty will post collateral to the Company as requested. At December 31, 2019, the institutional counterparty posted $560,000 of cash as collateral, which was presented within interest-bearing deposits in other banks as restricted cash with a matching liability within accrued interest and other liabilities on the consolidated statements of condition. Refer to Note 13 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) December 31, 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 $ 483 For the year ended December 31, 2019, the Company did no t record any ineffectiveness within the consolidated statements of income. Net payments paid to the institutional counterparty for the year ended December 31, 2019 were $214,000 , and were classified as cash flows from operating activities in the Company's consolidated statements of cash flow. Junior Subordinated Debt Interest Rate Swaps The Company entered into five interest rate swap agreements with an institutional counterparty to manage interest rate risk associated with the Company's variable rate borrowings. The Company has entered into a master netting arrangement with its institutional counterparty and settles payments 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 aggregate fair value and the Company’s credit rating. If the interest rate swaps are in a net asset position based on their aggregate fair value, the institutional counterparty will post collateral to the Company as requested. At December 31, 2019 and 2018, the Company posted $8.8 million and $5.8 million , respectively, of cash as collateral to the institutional counterparty, which is presented within other assets on the consolidated statements of condition. Refer to Note 13 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: December 31, (Dollars in thousands) 2019 2018 Trade Date Maturity Date Variable Index Received Fixed Rate Paid 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 $ (299 ) $ 10,000 $ (272 ) 7/8/2009 6/30/2029 3-Month USD LIBOR 5.84% Accrued interest and other liabilities 10,000 (2,318 ) 10,000 (1,655 ) 5/6/2010 6/30/2030 3-Month USD LIBOR 5.71% Accrued interest and other liabilities 10,000 (2,384 ) 10,000 (1,636 ) 3/14/2011 3/30/2031 3-Month USD LIBOR 4.35% Accrued interest and other liabilities 5,000 (1,279 ) 5,000 (877 ) 5/4/2011 7/7/2031 3-Month USD LIBOR 4.14% Accrued interest and other liabilities 8,000 (1,907 ) 8,000 (1,242 ) $ 43,000 $ (8,187 ) $ 43,000 $ (5,682 ) For the year ended December 31, 2019, 2018 and 2017, the Company did no t record any ineffectiveness on these cash flow hedges within the consolidated statements of income. Net payments to the institutional counterparty for the year ended December 31, 2019, 2018 and 2017 were $738,000 , $889,000 and $1.3 million , respectively, and were classified as cash flows from operating activities in the consolidated statements of cash flows. FHLBB Advance Interest Rate Swaps On February 25, 2015, the Bank entered into two $25.0 million one-year forward-starting interest rate swap arrangements with an institutional counterparty to mitigate short-term interest rate risk. On February 25, 2019 the last $25.0 million tranche matured. The details of the FHLBB advance interest rate swaps for the dates indicated were as follows: December 31, (Dollars in thousands) 2019 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 institutional counterparty for the year ended December 31, 2018 were $58,000 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 Year Ended (In thousands) 2019 2018 2017 Derivatives designated as cash flow hedges Effective portion of unrealized losses recognized within AOCI during the period, net of tax $ (2,334 ) $ 837 $ (248 ) Net reclassification adjustment for effective portion of cash flow hedges included in interest expense, gross $ 921 $ 831 $ 1,592 The Company expects approximately $833,000 (pre-tax) to be reclassified to interest expense from OCI, related to the Company’s cash flow hedges, in the next 12 months. This reclassification is due to anticipated payments that will be made and/or received on the swaps based upon the forward curve as of December 31, 2019 . BALANCE SHEET OFFSETTING The Company does not offset the carrying value for derivative instruments or repurchase agreements on the consolidated statements of condition. The Company does 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 10 for further discussion of repurchase agreements and Note 12 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 consolidated statements of condition, 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 December 31, 2019 Derivative assets: Customer loan swaps - commercial customer (2) $ 17,756 $ — $ 17,756 $ — $ — $ 17,756 Interest rate swap on loans 483 — 483 — (483 ) — Total $ 18,239 $ — $ 18,239 $ — $ (483 ) $ 17,756 Derivative liabilities: Customer loan swaps - dealer bank $ 17,242 $ — 17,242 $ — $ 17,242 $ — Junior subordinated debt interest rate swaps 8,187 — 8,187 — 8,187 — Customer loan swaps - commercial customer (2) 514 — 514 — — 514 Total $ 25,943 $ — $ 25,943 $ — $ 25,429 $ 514 Customer repurchase agreements $ 237,984 $ — $ 237,984 $ 237,984 $ — $ — December 31, 2018 Derivative assets: Customer loan swaps - dealer bank $ 4,374 $ — $ 4,374 $ — $ (4,374 ) $ — Customer loan swaps - commercial customer (2) 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 (2) 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. (2) The Company manages its net exposure on its commercial customer loan swaps by obtaining collateral as part of the normal loan policy and underwriting practices. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | SHAREHOLDERS' EQUITY 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 1 capital, and common equity Tier 1 capital to risk-weighted assets, and of Tier 1 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 1 risk-based capital ratio of 6.0%, a minimum common equity Tier 1 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 1 equity in an amount above the minimum risk-based capital requirements for “adequately capitalized” institutions equal to 2.5% of total risk-weighted assets, resulting in a requirement for the Company and the Bank effectively to maintain common equity Tier 1, Tier 1 and total capital ratios of 7.0%, 8.5% and 10.5%, respectively. The Company and the Bank must maintain the capital conservation buffer to avoid restrictions on the ability to pay dividends, pay discretionary bonuses, and to engage in share repurchases based on the amount of the shortfall and the institution’s “eligible retained income” (that is, four quarter trailing net income, net of distributions and tax effects not reflected in net income). The Company and Bank's risk-based capital ratios exceeded regulatory requirements, including the capital conservation buffer, at December 31, 2019 and 2018, and the Bank's capital ratios met the requirements for the Bank to be considered "well capitalized" under prompt correct action provisions for each period. There were no changes to the Company or Bank's capital ratios that occurred subsequent to December 31, 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: 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 December 31, Minimum Regulatory Capital Required For Capital Adequacy plus Capital Conservation Buffer Minimum Regulatory Provision To Be "Well Capitalized" Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Camden National Corporation: Total risk-based capital ratio $ 455,702 14.44 % 10.50 % N/A $ 434,331 14.36 % 9.875 % N/A Tier 1 risk-based capital ratio 415,511 13.16 % 8.50 % N/A 394,597 13.04 % 7.875 % N/A Common equity Tier 1 risk-based capital ratio 372,511 11.80 % 7.00 % N/A 351,597 11.62 % 6.375 % N/A Tier 1 leverage capital ratio 415,511 9.55 % 4.00 % N/A 394,597 9.53 % 4.00 % N/A Camden National Bank: Total risk-based capital ratio $ 423,540 13.45 % 10.50 % 10.00 % $ 398,773 13.18 % 9.875 % 10.00 % Tier 1 risk-based capital ratio 398,349 12.65 % 8.50 % 8.00 % 374,039 12.36 % 7.875 % 8.00 % Common equity Tier 1 risk-based capital ratio 398,349 12.65 % 7.00 % 6.50 % 374,039 12.36 % 6.375 % 6.50 % Tier 1 leverage capital ratio 398,349 9.19 % 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 applicable regulation, to include, subject to certain limits, each within its calculation of risk-based capital. At December 31, 2019 and 2018, $15.0 million of subordinated debentures were included as Tier 2 capital and were included in the calculation of the Company's total risk-based capital, and, at December 31, 2019 and 2018, $43.0 million of the junior subordinated debentures were included in Tier 1 and total risk-based capital for the Company. The Company's $15.0 million of subordinated debentures are subject to phase-out of 20% annually beginning on its six year anniversary, and 20% a year thereafter until it is fully phased out. 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. Dividends The primary source of funds available to the Company for the payment of dividends to its shareholders is dividends paid to the Company by its subsidiary, the Bank. The Bank is subject to certain requirements imposed by federal banking laws and regulations. These requirements, among other things, establish minimum levels of capital and restrict the amount of dividends that a bank subsidiary may distribute. Under regulations prescribed by the OCC, without prior OCC approval, a bank subsidiary may not declare dividends in any year in excess of the bank’s (i) net income for the current year, (ii) plus its retained net income for the prior two years. For the year ended December 31, 2019 , 2018 , and 2017, the Bank declared dividends for payment to the Company in the amount of $36.9 million , $28.1 million , and $16.8 million , respectively. For the year ended December 31, 2019, 2018 and 2017, the Company declared $18.9 million , $18.0 million and $14.6 million , respectively, in dividends payable to its shareholders. Common Stock Repurchase In September 2013, the Company's Board of Directors authorized the 2013 Repurchase Plan which allowed for the repurchase of up to 375,000 shares of the Company’s outstanding common stock. During the year ended December 31, 2018, the Company purchased the remaining 750 shares of its common stock and completed its repurchase of the total allotment of 375,000 shares at a weighted-average price of $ 26.57 . In January 2019, the Company's Board of Directors authorized the purchase of up to 775,000 shares of the Company's common stock, representing approximately 5.0% of the Company's issued and outstanding shares of common stock as of December 31, 2018. For the year ended December 31, 2019, the Company purchased 488,052 shares of its common stock at a weighted-average price of $42.61 . This program is now closed. In January 2020 the Company's Board of Directors authorized the repurchase of up to 750,000 shares of the Company's common stock, representing approximately 5.0% of the Company's issued and outstanding shares of common stock as of December 31, 2019. This program replaces the 2019 program and is open for 12 months . |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | OTHER COMPREHENSIVE INCOME (LOSS) The following tables present a reconciliation of the changes in the components of other comprehensive income and loss for the periods indicated, including the amount of tax (expense) benefit allocated to each component: For The Year Ended December 31, 2019 (In thousands) Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount AFS Securities: Unrealized holdings gains $ 26,743 $ (5,750 ) $ 20,993 Less: reclassification adjustment for realized losses (1) (105 ) 22 (83 ) Net unrealized gains 26,848 (5,772 ) 21,076 Cash Flow Hedges: Net decrease in fair value (2,973 ) 639 (2,334 ) Less: effective portion reclassified into interest expense (2) (921 ) 198 (723 ) Net decrease in fair value (2,052 ) 441 (1,611 ) Postretirement Plans: Net actuarial loss (1,918 ) 412 (1,506 ) Less: Amortization of net actuarial losses (3) (271 ) 59 (212 ) Less: Amortization of net prior service credits (3) 24 (5 ) 19 Net loss on postretirement plans (1,671 ) 358 (1,313 ) Other comprehensive income $ 23,125 $ (4,973 ) $ 18,152 For The Year Ended December 31, 2018 (In thousands) Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount AFS Securities: Unrealized holdings losses $ (10,846 ) $ 2,332 $ (8,514 ) Less: reclassification adjustment for realized losses (1) (663 ) 142 (521 ) Net unrealized losses (10,183 ) 2,190 (7,993 ) Cash Flow Hedges: Net increase in fair value 1,066 (229 ) 837 Less: effective portion reclassified into interest expense (2) (831 ) 179 (652 ) Net increase in fair value 1,897 (408 ) 1,489 Postretirement Plans: Net actuarial gain 1,743 (375 ) 1,368 Less: Amortization of net actuarial losses (3) (613 ) 131 (482 ) Less: Amortization of net prior service credits (3) 24 (5 ) 19 Net loss on postretirement plans 2,332 (501 ) 1,831 Other comprehensive loss $ (5,954 ) $ 1,281 $ (4,673 ) For The Year Ended December 31, 2017 (In thousands) Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount AFS Securities: Unrealized holdings losses $ (2,905 ) $ 1,017 $ (1,888 ) Less: reclassification adjustment for realized gains (1) 855 (299 ) 556 Net unrealized losses (3,760 ) 1,316 (2,444 ) Cash Flow Hedges: Net decrease in fair value (382 ) 134 (248 ) Less: effective portion reclassified into interest expense (2) (1,592 ) 557 (1,035 ) Net increase in fair value 1,210 (423 ) 787 Postretirement Plans: Net actuarial loss (2,065 ) 723 (1,342 ) Less: amortization of net actuarial losses (3) (286 ) 100 (186 ) Less: amortization of net prior service credits (3) 24 (8 ) 16 Net loss on postretirement plans (1,803 ) 631 (1,172 ) Other comprehensive loss $ (4,353 ) $ 1,524 $ (2,829 ) (1) Reclassified into net (loss) gain on sale of securities on the consolidated statements of income. (2) Reclassified into interest on borrowings and subordinated debentures on the consolidated statements of income. (3) Reclassified into compensation and related benefits and other expense on the consolidated statements of income. Refer to Note 18 of the consolidated financial statements for further details. The Company adopted ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ("ASU 2018-02"), in 2017 and reclassified certain tax effects from AOCI to retained earnings, related to items that were stranded in other comprehensive income or loss as a result of the Tax Act. A description of the tax effects on other comprehensive income or loss upon are presented within the table below. The following table presents the changes in each component of AOCI for the periods indicated: (In thousands) Net Unrealized Gains (Losses) on AFS Securities (1) Net Unrealized Losses on Cash Flow Hedges (1) Defined Benefit Postretirement Plans (1) AOCI (1) Balance at December 31, 2016 $ (6,085 ) $ (5,694 ) $ (2,130 ) $ (13,909 ) Other comprehensive loss before reclassifications (1,888 ) (248 ) (1,342 ) (3,478 ) Less: Amounts reclassified from AOCI 556 (1,035 ) (170 ) (649 ) Other comprehensive loss (income) (2,444 ) 787 (1,172 ) (2,829 ) Less: Amounts reclassified from AOCI related to adoption of ASU 2018-02 (1,771 ) (1,019 ) (686 ) (3,476 ) Balance at December 31, 2017 (10,300 ) (5,926 ) (3,988 ) (20,214 ) Other comprehensive (loss) income before reclassifications (8,514 ) 837 1,368 (6,309 ) Less: Amounts reclassified from AOCI (521 ) (652 ) (463 ) (1,636 ) Other comprehensive loss (income) (7,993 ) 1,489 1,831 (4,673 ) Net amount reclassified to AOCI related to adoption of ASU 2016-01 and ASU 2017-12 467 — — 467 Balance at December 31, 2018 (17,826 ) (4,437 ) (2,157 ) (24,420 ) Other comprehensive income (loss) before reclassifications 20,993 (2,334 ) (1,506 ) 17,153 Less: Amounts reclassified from AOCI (83 ) (723 ) (193 ) (999 ) Other comprehensive income (loss) 21,076 (1,611 ) (1,313 ) 18,152 Balance at December 31, 2019 $ 3,250 $ (6,048 ) $ (3,470 ) $ (6,268 ) (1) All amounts are net of tax. |
Revenue from Contracts with Cus
Revenue from Contracts with Customer | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customer | REVENUE FROM CONTRACTS WITH CUSTOMERS On January 1, 2018, the Company adopted ASC 606, the new revenue recognition standard, using the modified retrospective transition method. A portion of the Company's non-interest income is derived from contracts with customers, and as such, the revenue recognized depicts the transfer of promised goods or services to its customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company considers the terms of the contract and all relevant facts and circumstances when applying this guidance. The Company has disaggregated its revenue from contracts with customers into categories based on the nature of the revenue. The categorization of revenues from contracts with customer within the scope of ASC 606 closely aligns with the presentation revenue categories presented within non-interest income on the consolidated statements of income. The following table presents the revenue streams with the scope of ASC 606 for the periods indicated: For The Year ended December 31, (In thousands) Income Statement Line Item 2019 2018 Debit card interchange income Debit card income $ 9,701 $ 9,067 Services charges on deposit accounts Service charges on deposit accounts 8,393 8,253 Fiduciary services income Income from fiduciary services 5,901 5,376 Investment program income Brokerage and insurance commissions 2,625 2,615 Other non-interest income Other income 1,710 1,508 Total non-interest income within the scope of ASC 606 28,330 26,819 Total non-interest income not in scope of ASC 606 13,783 11,357 Total non-interest income $ 42,113 $ 38,176 In each of the revenue streams identified above, there were no significant judgments made in determining or allocating the transaction price, as the consideration and services are generally explicitly identified in the associated contracts. Additional information related to each revenue stream is discussed below: • Debit card interchange income: The Company has separate contracts with intermediaries and earns interchange revenue and incurs related expenses on debit card transactions of its deposit customers. Income earned and expenses incurred by the Company are dependent on its depositors' debit card usage, including depositor spend, transaction type and merchant. The rates earned are determined by the intermediaries. The Company determined that although the contract for which revenues are directly earned is with the intermediary rather than the depositor, that an underlying contract with each depositor is required for the generation of debit card interchange income and it is the depositors' debit card usage that drives the revenues earned and related expenses incurred. The contract with the depositor is day-to-day and can be closed by the customer or the Company at any time. As such, the Company recognizes revenue at the time of the transaction as the performance obligation has been met. The Company's debit card interchange revenue and related expenses are presented on a gross basis as it has control of the specified service prior to transfer to the depositor through the extension of credit. The Company pays to certain depositors cash rewards for debit card usage to promote usage and increase interchange revenue. Because the consideration paid to depositors is not for any separate or distinct service, these costs are accounted for as a reduction of debit card interchange income. For the year ended December 31, 2019 and 2018, cash rewards totaled $554,000 and $438,000 , respectively. • Service charges on deposit accounts: Deposit-related fees, include, but are not limited to, overdraft income, service charge income, and other fees generated by the depositor relationship with the Company. For each depositor relationship, an agreement and related disclosures outline the terms of the contract between the depositor and the Bank, including the assessment of fees and fee structure for its various products. The contract is day-to-day and can be closed by the customer or the Company at any time. As such, the Company recognizes revenue at the time of the transaction as the performance obligation has been met. • Fiduciary services income: The Company, through its wealth management and trust services department, doing business as Camden National Wealth Management, earns fees for its investment management and related services for its clients. Fees earned for its services are largely dependent on assets under management as of the last day of the month and do not contain performance clauses. Should the applicable services contract be terminated by either party, fees for services are earned up to the effective date of contract termination. As such, fiduciary services income is earned and recognized daily. • Investment program income: Under an investment program offered by the Company, doing business as Camden Financial Consultant (“Program”), its clients are provided access to brokerage, advisory and insurance products offered through an unaffiliated third party. Certain Company employees are registered securities representatives and/or registered investment advisor representatives of the third party, operating in such capacity under Camden Financial Consultants to provide clients with brokerage, investment advisory and insurance related services. The Company receives a portion of the commissions and fees received by the unaffiliated third party brokerage firm from the sale of investment products and investment advisory services, in accordance with the terms of the contract between the two parties. The revenues earned by the Company are net of administrative expenses and the portion retained by the unaffiliated third party brokerage firm. The Company does not have control of the specified services provided to its clients by the unaffiliated third party brokerage firm under the Program. Revenues earned from Program-related services are presented on the consolidated statements of income on a net basis. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans | STOCK-BASED COMPENSATION PLANS Stock-Based Compensation On April 29, 2003 and May 1, 2012, the shareholders of the Company approved the 2003 Plan and 2012 Plan, respectively. The maximum number of shares of stock reserved and available for issuance under each the 2003 Plan and 2012 Plan is 1.2 million shares. As shares or units are vested or options are exercised, new shares are issued out of either the 2003 or 2012 Plan. Awards may be granted in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, unrestricted stock, performance shares and dividend equivalent rights, or any combination of the preceding, and the exercise price will not be less than 100% of the fair market value on the date of grant in the case of incentive stock options, or 85% of the fair market value on the date of grant in the case of non-qualified stock options. No stock option is exercisable more than ten years after the date the stock option was granted. The exercise price of all options granted equaled the market price of the Company's stock on the date of grant, except for certain non-qualified stock options that were issued in conjunction with an acquisition. The amount of cash used to settle stock-based compensation transactions for the year ended December 31, 2019, 2018 and 2017 was $455,000 , $848,000 and $902,000 , respectively. Stock Option Awards Stock options granted under the 2003 Plan and the 2012 Plan include both incentive stock options and non-qualified stock options. Incentive stock options and non-qualified stock options granted vest pro-rata over a five year period, or earlier if an employee retires and has met the retirement eligibility requirements of the plan, and have a contractual life of ten years. On the date of each grant, the fair value of each award is derived using the Black-Scholes option pricing model based on assumptions made by the Company as follows: • Dividend yield is based on the dividend rate of the Company’s stock at the date of grant. • Risk-free interest rate is based on the U.S. Treasury bond rate with a term equaling the expected life of the granted options. • Expected volatility is based on the historical volatility of the Company’s stock price calculated over the expected life of the option. • Expected life represents the period of time that granted options are expected to be outstanding based on historical trends. For the year ended December 31, 2019, 2018 and 2017, the Company issued stock options with a grant-date fair value of $0 , $8,000 and $0 , respectively. The following table presents the option pricing assumptions and the estimated fair value of the options using these assumptions for grants made for the year ended: December 31, 2019 2018 2017 Weighted-average dividend yield N/A 2.36 % N/A Weighted-average risk-free interest rate N/A 2.38 % N/A Weighted-average expected volatility N/A 22.80 % N/A Weighted-average expected life (in years) N/A 5.3 N/A Weighted-average fair value of options granted N/A $ 7.78 N/A Compensation expense is recognized on a straight-line basis over the vesting period. For the year ended December 31, 2019, 2018 and 2017, the compensation expense recognized was $7,000 , $10,000 and $20,000 , respectively. The Company does not receive any tax benefit on its issuance of incentive stock options, unless upon exercise a disqualifying disposition is made. The total tax benefit to the Company upon exercise of incentive stock options for the year ended December 31, 2019 , 2018 and 2017 was $8,000 , $50,000 , and $21,000 , respectively. Additionally, for the year ended December 31, 2019, 2018 and 2017, the Company received a tax benefit upon the exercise of non-qualified stock options, of $1,000 , $0 and $7,000 , respectively. Stock option activity for the year ended December 31, 2019 was as follows: (Dollars in thousands, except per option data) Number of Options Weighted-Average Exercise Price per Option Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Options outstanding at January 1, 2019 27,352 $ 22.53 Granted — — Exercised (13,745 ) 21.39 Forfeited — — Expired — — Options outstanding at December 31, 2019 13,607 $ 23.69 3.3 $ 304 Options exercisable at December 31, 2019 11,757 $ 22.21 2.8 $ 280 A summary of the status of the Company’s nonvested stock options as of December 31, 2019 and changes during the year then ended was as follows: Options Weighted-Average Grant Date Fair Value per Option Nonvested at January 1, 2019 3,100 $ 6.32 Granted — — Vested (1,250 ) 6.09 Forfeited — — Nonvested at December 31, 2019 1,850 $ 6.48 For the year ended December 31, 2019 , 2018 and 2017, the Company received cash from the exercise of stock options of $95,000 , $218,000 and $98,000 respectively. Unrecognized compensation expense for nonvested stock options totaled $7,000 at December 31, 2019 and is expected to be recognized over the remaining weighted-average vesting period of 2.5 years . The total intrinsic value of options exercised for the year ended December 31, 2019 , 2018 and 2017 was $309,000 , $395,000 , and $268,000 , respectively. Restricted Stock Units Restricted stock units vest pro-rata over the requisite service period, which is typically three to five years, and may contain certain performance-based conditions. Restricted stock units issued do not participate in dividends and recipients are not entitled to vote these restricted units until they vest. For the year ended December 31, 2019, 2018 and 2017, the Company issued restricted stock units with a grant-date fair value of $657,000 , $887,000 and $808,000 , respectively, to certain employees. The grant-date fair value is calculated utilizing the Company's closing market share price as of the date the awards are granted. Compensation expense and the related income tax benefit recognized in connection with the restricted stock units was as follows for the periods indicated: For The Year Ended (In thousands) 2019 2018 2017 Compensation expense $ 389 $ 263 $ 124 Income tax benefit 84 57 27 Fair value of grants vested 302 149 — Restricted stock unit activity for the year ended December 31, 2019 was as follows: (Dollars in thousands, except per unit data) Number of Units Weighted-Average Grant Date Fair Value per Unit Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Unrecognized Compensation Nonvested at January 1, 2019 30,225 $ 44.23 Granted 15,138 43.40 Vested (6,854 ) 44.12 Forfeited (2,457 ) 43.99 Nonvested at December 31, 2019 36,052 $ 43.92 3.3 $ 1,661 $ 1,258 Restricted Stock Awards Restricted stock awards vest pro-rata over the requisite service period, which is typically three to five years, or earlier if a recipient retires and has met the retirement eligibility requirements of the plan. Awards issued to Company directors vest immediately, and may contain certain performance-based conditions. Nonvested restricted stock awards participate in Company dividends and recipients are entitled to vote these restricted shares during the vesting period. For the year ended December 31, 2019, 2018 and 2017, the Company issued restricted stock awards with a grant-date fair value of $724,000 , $753,000 and $686,000 , respectively, to certain directors and employees. The grant-date fair value is calculated utilizing the Company's closing market share price as of the date the awards are granted. Compensation expense and the related income tax benefit recognized in connection with the restricted stock awards was as follows for the periods indicated: For The Year Ended (In thousands) 2019 2018 2017 Compensation expense $ 751 $ 916 $ 762 Income tax benefit 161 197 164 Fair value of grants vested 780 931 702 Restricted stock award activity for the year ended December 31, 2019 is as follows: (Dollars in thousands, except per share data) Number of Shares Weighted-Average Grant Date Fair Value per Share Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Unrecognized Compensation Nonvested at January 1, 2019 22,781 $ 38.21 Granted 16,347 44.30 Vested (19,420 ) 40.16 Forfeited (421 ) 27.20 Nonvested at December 31, 2019 19,287 $ 41.66 1.6 $ 888 $ 492 MSPP The Company offers the MSPP to provide an opportunity for certain employees to receive restricted shares of the Company’s common stock in lieu of a portion of their annual incentive bonus. Restricted shares issued under the MSPP are granted at a discount of the fair market value of the stock on the date of grant and they cliff vest two years after the grant date, or earlier if a recipient reaches the retirement eligibility requirements of the Plan. Should an employee forfeit his or her nonvested MSPP awards, the Company will return the lesser of the strike price paid by the employee or the fair value of the nonvested awards as of the date forfeited. Restricted stock issued under the MSPP participate in Company dividends and are entitled to vote these restricted shares during the vesting period. For the year ended December 31, 2019, 2018 and 2017, the Company issued MSPP awards with a grant-date fair value of $85,000 , $139,000 and $111,000 , respectively, to certain employees. Compensation expense and the related income tax benefit recognized in connection with the MSPP awards was as follows for the periods indicated: For The Year Ended (In thousands) 2019 2018 2017 Compensation expense $ 95 $ 104 $ 97 Income tax benefit 20 22 21 Fair value of grants vested 75 130 91 MSPP award activity for the year ended December 31, 2019 was as follows: (Dollars in thousands, except per share data) Number of Shares Weighted-Average Grant Date Fair Value per Share Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Unrecognized Compensation Nonvested at January 1, 2019 13,013 $ 14.35 Granted 7,741 11.01 Vested (5,516 ) 13.65 Forfeited (223 ) 14.23 Nonvested at December 31, 2019 15,015 $ 12.89 0.7 $ 219 $ 57 For the year ended December 31, 2019 , 2018 and 2017, the Company received cash from the issuance of restricted shares under the MSPP of $250,000 , $232,000 and $180,000 , respectively. At December 31, 2019 and 2018, cash received from certain participating employees totaled $472,000 and $384,000 , respectively, and was presented within accrued interest and other liabilities on the consolidated statements of condition. LTIP The LTIP is intended to attract and retain executives who will contribute to the Company’s future success. The long-term performance period is a period of three consecutive years beginning on January 1 of the first year and ending on December 31 of the third year. Awards granted are 50% weighted on the attainment of certain performance targets approved by the Board of Directors and 50% weighted on meeting the requisite service period. The performance-based share units granted will vest only if the performance targets are achieved, and the amount received by the LTIP participants may vary from 0% - 200% of target, depending on the level at which performance targets are met. Failure to achieve the specific performance measures will result in all or a portion of the shares being forfeited. The service-based awards are restricted stock awards and vest annually pro-rata over a three year period. The associated service-based awards are disclosed within the aforementioned Restricted Stock Awards section of this note . For the year ended December 31, 2019, 2018 and 2017, the Company issued performance-based stock awards with a grant-date fair value of $624,000 , $663,000 and $697,000 , respectively. The grant-date fair value is calculated utilizing the Company's closing market share price as of the date the awards are granted. Compensation expense and the related tax benefit for the LTIP's performance-based awards was as follows for the periods indicated: For The Year Ended (In thousands) 2019 2018 2017 Compensation expense $ 532 $ 291 $ 370 Related income tax benefit 114 63 80 Fair value of grants vested 344 284 843 LTIP performance-based award activity for the year ended December 31, 2019 was as follows: (Dollars in thousands, except per share data) Number of Shares Weighted-Average Grant Date Fair Value per Share Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Unrecognized Compensation Nonvested at January 1, 2019 26,377 $ 44.28 Granted 14,186 43.98 Vested (7,811 ) 43.99 Forfeited (4,987 ) 43.99 Nonvested at December 31, 2019 27,765 $ 44.26 1.6 $ 1,279 $ 455 DCRP The DCRP is an unfunded deferred compensation plan for the benefit of certain Company executives. Annually, participants will receive a credit to an account administered by the Company of 10% of each participant’s annual base salary and bonus for the prior performance period. Annual credits to a participant’s account will be denominated in deferred stock awards (the right to receive a share of common stock of the Company upon the satisfaction of certain restrictions) based on the fair market value of the common stock of the Company on the date of grant. For all active participants vesting occurs ratably from the date of participation until the participant reaches the age of 65, at which time the participant is 100% vested. In 2018, the DCRP was amended providing the ability to tailor vesting terms for new participants. For the year ended December 31, 2019, 2018 and 2017, the Company issued DCRP awards with a grant-date fair value of $153,000 , $155,000 and $118,000 , respectively. The grant-date fair value is calculated utilizing the Company's closing market share price as of the date the awards are granted. Compensation expense and the related tax benefit recognized in connection with the DCRP was as follows for the periods presented: For The Year Ended (In thousands) 2019 2018 2017 Compensation expense $ 110 $ 106 $ 97 Related income tax benefit 24 23 21 Fair value of grants vested 102 105 90 DCRP award activity for the year ended December 31, 2019 was as follows: (Dollars in thousands, except per award data) Number of Deferred Stock Awards Weighted-Average Grant Date Fair Value per Award Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Unrecognized Compensation Nonvested at January 1, 2019 9,970 $ 28.16 Granted 3,542 43.26 Vested (2,861 ) 35.74 Forfeited — — Nonvested at December 31, 2019 10,651 $ 31.14 10.3 $ 491 $ 255 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS 401(k) and Profit Sharing Plan The Company has a 401(k)/profit sharing plan and the majority of employees participate in the plan. Employees may contribute pre-tax contributions to the 401(k) plan up to the maximum amount allowed by federal tax laws. The Company makes matching contributions of up to 4% of an employee’s eligible compensation. The Company, at its discretion, may make profit sharing contributions to employees' 401(k) accounts in addition to its regular 401(k) plan matching contribution. For the year ended December 31, 2019 , 2018 and 2017 , these additional contributions totaled 3% of employee eligible compensation. For the year ended December 31, 2019 , 2018 and 2017 , expenses under the 401(k) and profit sharing plan totaled $2.4 million , $2.3 million , and $2.3 million , respectively. SERP and Other Postretirement Benefit Plan The Company sponsors unfunded, non-qualified SERPs for certain officers. These agreements are designed to make up the shortfall (when compared to a non-highly compensated employee) in replacing income at retirement due to IRS compensation and benefit limits under the 401(k) plan and Social Security. The SERP provides for a minimum 15 -year guaranteed benefit for all vested participants. The Company also provides medical and life insurance to certain eligible retired employees under the other postretirement benefit plan. This postretirement plan is a benefit only available to qualifying participants who were grandfathered. The following table summarizes changes in the benefit obligation and plan assets for each postretirement benefit plan as of the dates indicated: SERP Other Postretirement Benefits December 31, (In thousands) 2019 2018 2019 2018 Benefit obligations: Beginning of year $ 12,717 $ 13,790 $ 3,616 $ 3,791 Service cost 395 446 48 46 Interest cost 523 488 148 132 Actuarial loss (gain) 1,524 (1,534 ) 394 (209 ) Benefits paid (477 ) (473 ) (157 ) (144 ) End of year 14,682 12,717 4,049 3,616 Fair value of plan assets: Beginning of year — — — — Employer contributions 477 473 157 144 Benefits paid (477 ) (473 ) (157 ) (144 ) End of year — — — — Unfunded status at end of year (1) $ 14,682 $ 12,717 $ 4,049 $ 3,616 Amounts recognized in AOCI, net of tax: Net actuarial loss $ 2,864 $ 1,859 $ 738 $ 449 Prior service credit — — (132 ) (151 ) Total $ 2,864 $ 1,859 $ 606 $ 298 (1) Presented within other liabilities on the consolidated statements of condition. The accumulated benefit obligation for the SERP at December 31, 2019 and 2018 was $14.2 million and $12.1 million , respectively. For the year ending December 31, 2020, the estimated actuarial loss on the SERP that will be amortized from AOCI into net periodic benefit cost is $623,000 . All prior service costs have been fully amortized. For the year ending December 31, 2020, the estimated actuarial loss and prior service credit on other postretirement benefits that will be amortized from AOCI into net periodic benefit cost is $78,000 and $24,000 , respectively. The components of net periodic benefit cost and other amounts recognized in OCI, before taxes, were as follows for the year ended December 31: SERP Other Postretirement Benefits (In thousands) 2019 2018 2017 2019 2018 2017 Net periodic benefit cost: Service cost (1) $ 395 $ 446 $ 335 $ 48 $ 46 $ 53 Interest cost (2) 523 488 452 148 132 144 Recognized net actuarial loss (2) 240 561 246 31 52 40 Amortization of prior service credit (2) — — — (24 ) (24 ) (24 ) Net periodic benefit cost 1,158 1,495 1,033 203 206 213 Changes in funded status recognized in OCI, before taxes: Net actuarial loss (gain) arising during period 1,524 (1,534 ) 1,955 394 (209 ) 110 Reclassifications to net periodic benefit cost: Amortization of net unrecognized actuarial loss (240 ) (561 ) (246 ) (31 ) (52 ) (40 ) Amortization of prior service credit — — — 24 24 24 Total recognized in OCI, before taxes 1,284 (2,095 ) 1,709 387 (237 ) 94 Total recognized in net periodic benefit cost and OCI, before taxes $ 2,442 $ (600 ) $ 2,742 $ 590 $ (31 ) $ 307 (1) Presented in salaries and employee benefits on the consolidated statements of income. (2) Presented in other expenses on the consolidated statements of income. The following assumptions were used in determining benefit obligations and net period benefit costs: SERP Other Postretirement Benefits 2019 2018 2017 2019 2018 2017 Weighted-average assumptions as of end of year: Discount rate for benefit obligation 3.2 % 4.2 % 3.6 % 3.2 % 4.2 % 3.6 % Discount rate for net periodic benefit cost 4.2 % 3.6 % 4.0 % 4.2 % 3.6 % 4.0 % Rate of compensation increase for benefit obligation 3.0 % 3.0 % 5.0 % N/A N/A N/A Rate of compensation increase for net periodic benefit cost 3.0 % 3.0 % 5.0 % N/A N/A N/A Health care cost trend rate assumed for future years N/A N/A N/A 4.5% - 7.0% 5.0% - 6.0% 5.0% - 6.0% A 1.0% increase or decrease in the assumed health care cost trend rate would not materially increase or decrease the Company's accumulated postretirement benefit obligation and the related service and interest cost as of December 31, 2019 . For the year ended December 31, 2020, the expected contribution is $486,000 for the SERP and $268,000 for the other postretirement benefits plan. The expected benefit payments for the next ten years are presented in the following table: (In thousands) SERP Other Postretirement Benefits 2020 $ 486 $ 268 2021 536 265 2022 566 233 2023 526 219 2024 436 231 Next 5 years 2,141 1,084 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The current and deferred components of income tax expense on the consolidated statements of income were as follows: For The Year Ended December 31, (In thousands) 2019 2018 2017 Current: Federal $ 11,876 $ 14,102 $ 14,529 State 1,241 1,206 1,289 13,117 15,308 15,818 Deferred: Federal 1,230 (2,541 ) 4,117 State 29 (61 ) (320 ) Change in federal corporate income tax rate (1) — — 14,263 1,259 (2,602 ) 18,060 Income tax expense $ 14,376 $ 12,706 $ 33,878 The income tax expense differs from the amount computed by applying the statutory federal income tax rate as a result of the following: For The Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Computed tax expense (1) $ 15,032 $ 13,813 $ 21,824 Increase (reduction) in income taxes resulting from: State taxes, net of federal benefit 1,003 905 630 Tax exempt income (738 ) (741 ) (1,291 ) Income from life insurance (509 ) (510 ) (829 ) Low income housing credits (430 ) (465 ) (366 ) Share-based awards (60 ) (250 ) (390 ) Change in federal corporate income tax rate (1) — — 14,263 Other 78 (46 ) 37 Income tax expense $ 14,376 $ 12,706 $ 33,878 Income before income taxes $ 71,579 $ 65,777 $ 62,354 Effective tax rate 20.1 % 19.3 % 54.3 % (1) On December 22, 2017, the Tax Act was enacted, reducing the U.S. federal corporate income tax rate from 35.0% to 21.0%. The Company recognized the effect of the tax law changes in the period of enactment, which resulted in a reduction to net deferred tax assets and a corresponding charge to income tax expense of $14.3 million . Temporary differences between the financial statements carrying amounts and the tax bases of assets and liabilities gave rise to the following deferred tax assets and liabilities as of the dates indicated: December 31, 2019 2018 (In thousands) Asset Liability Asset Liability Net operating loss and tax credit carryforward $ 10,421 $ — $ 11,250 $ — Allowance for loan losses 5,416 — 5,318 — Pension and other benefits 4,492 — 3,881 — Net unrealized losses on derivative instruments 1,656 — 1,215 — Deferred compensation and benefits 919 — 927 — Depreciation — (3,053 ) — (2,913 ) Deferred loan origination fees — (2,119 ) — (1,860 ) Net unrealized (gains) losses on AFS debt securities (890 ) 4,882 — Other (19 ) 353 — Gross deferred tax assets (liabilities) $ 22,904 $ (6,081 ) $ 27,826 $ (4,773 ) Valuation allowance on deferred tax assets — — Net deferred tax assets $ 16,823 $ 23,053 At December 31, 2019 and 2018, the Company had $48.2 million and $52.1 million , respectively, in unused federal net operating losses that were acquired in 2015. Due to Internal Revenue Code Section 382(g) limitations, the Company's use of the federal net operating losses acquired is limited to $3.9 million annually, which was determined using the applicable federal rate and the fair value of consideration paid for the acquisition at the acquisition date. The acquired federal net operating losses will expire between 2030 and 2034 . The Company expects that it will be able to fully utilize the acquired allowable federal net operating losses prior to expiration, as the Company has a history of generating taxable income well in excess of the limitation. The Company continuously monitors and assesses the need for a valuation allowance on its deferred tax assets and, at December 31, 2019 and 2018 determined that no valuation allowance was necessary. As of December 31, 2019, the Company's federal and state income tax returns for the year ended December 31, 2018, 2017 and 2016 were open to audit by federal and state authorities. |
EPS
EPS | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | EPS The following is an analysis of the calculation of basic and diluted EPS, reflecting the application of the two-class method, for the periods indicated: For The Year Ended December 31, (In thousands, except number of shares and per share data) 2019 2018 2017 Net income $ 57,203 $ 53,071 $ 28,476 Dividends and undistributed earnings allocated to participating securities (1) (120 ) (148 ) (118 ) Net income available to common shareholders $ 57,083 $ 52,923 $ 28,358 Weighted-average common shares outstanding for basic EPS 15,407,289 15,571,387 15,509,665 Dilutive effect of stock-based awards (2) 45,733 54,916 78,682 Weighted-average common and potential common shares for diluted EPS 15,453,022 15,626,303 15,588,347 Earnings per common share: Basic EPS $ 3.70 $ 3.40 $ 1.83 Diluted EPS $ 3.69 $ 3.39 $ 1.82 (1) Represents dividends paid and undistributed earnings allocated to nonvested stock-based awards that contain non-forfeitable rights to dividends. (2) Represents the effect of the assumed exercise of stock options, vesting of restricted shares and restricted stock units, and issuance of LTIP awards that have met the performance criteria, utilizing the treasury stock method. For the year ended December 31, 2019, 2018 and 2017 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
Fair Value | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | FAIR VALUE 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 on an individual loan basis using quoted secondary market prices 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 equity securities in bank stock is determined using 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 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 December 31, 2019 and 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 are determined using secondary market pricing for loans with similar structures, including term, rate and borrower credit quality, adjusted for the Company's pull-through rate estimate (i.e. estimate of loans within its pipeline that will ultimately complete the origination process and be funded). The Company has classified its fixed rate interest rate lock commitments as Level 2 as the quoted secondary market prices are the more significant input, and 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) December 31, 2019 Financial assets: Loans held for sale $ 11,854 $ — $ 11,854 $ — AFS investments: Obligations of states and political subdivisions 118,083 — 118,083 — Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 463,386 — 463,386 — Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 325,905 — 325,905 — Subordinated corporate bonds 10,744 — 10,744 — Equity securities - bank stock 1,674 — 1,674 — Customer loan swaps 17,756 — 17,756 — Interest rate swap on loans 483 — 483 — Fixed-rate mortgage interest rate lock commitments 480 — 480 — Forward delivery commitments 312 — 312 — Financial liabilities: Junior subordinated debt interest rate swaps $ 8,187 $ — $ 8,187 $ — Customer loan swaps 17,756 — 17,756 — Fixed-rate mortgage interest rate lock commitments 18 — 18 — Forward delivery commitments 15 — 15 — 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 for the year ended December 31, 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 individually evaluate 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 determined servicing assets are Level 3 of the fair value hierarchy. At December 31, 2019 and 2018, the Company's 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, goodwill and core deposit 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 Core Deposit 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 for the year ended December 31, 2019 or 2018 for which management believed that it was 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. There were no indications or triggering events for the year ended December 31, 2019 or 2018 that indicated the carrying amount may not be recoverable. The table below highlights financial and non-financial assets measured and recorded at fair value on a non-recurring basis 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) December 31, 2019 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) December 31, 2019 OREO $ 94 Market approach appraisal of collateral Management adjustment of appraisal 18% (18%) Estimated selling costs 13% (13%) December 31, 2018 Collateral-dependent impaired loans: Partially charged-off $ 50 Market approach appraisal of collateral Management adjustment of appraisal 0% (0%) Estimated selling costs 10% (10%) Specifically reserved 472 Market approach appraisal of collateral Management adjustment of appraisal 0% (0%) Estimated selling costs 10% (10%) OREO 130 Market approach appraisal of collateral Management adjustment of appraisal 19% (19%) Estimated selling costs 10% (10%) The estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below as of the 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) December 31, 2019 Financial assets: HTM securities $ 1,302 $ 1,359 $ — $ 1,359 $ — Residential real estate loans (1) 1,064,532 1,066,544 — — 1,066,544 Commercial real estate loans (1) 1,230,983 1,196,297 — — 1,196,297 Commercial loans (1)(2) 438,716 431,892 — — 431,892 Home equity loans (1) 310,356 293,565 — — 293,565 Consumer loans (1) 25,265 23,355 — — 23,355 Servicing assets 877 1,496 — — 1,496 Financial liabilities: Time deposits $ 595,549 $ 594,881 $ — $ 594,881 $ — Short-term borrowings 268,809 268,631 — 268,631 — Long-term borrowings 10,000 10,002 — 10,002 — Subordinated debentures 59,080 50,171 — 50,171 — 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. |
Parent Company Financial Statem
Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Financial Statements | PARENT COMPANY FINANCIAL STATEMENTS Following are the condensed statements of condition, income and cash flows for the Company's parent company: STATEMENTS OF CONDITION December 31, (In thousands) 2019 2018 ASSETS Cash $ 30,561 $ 32,367 Investment in subsidiary 509,149 464,885 Receivable from subsidiary 150 48 Other assets 19,290 15,458 Total assets $ 559,150 $ 512,758 LIABILITIES AND SHAREHOLDERS’ EQUITY Subordinated debentures $ 59,080 $ 59,067 Due to subsidiary 33 40 Other liabilities 26,622 17,826 Shareholders’ equity 473,415 435,825 Total liabilities and shareholders’ equity $ 559,150 $ 512,758 STATEMENTS OF INCOME For The Year Ended December 31, (In thousands) 2019 2018 2017 Operating Income Dividend income from subsidiary $ 36,900 $ 28,100 $ 16,800 Other income 1,128 283 145 Total operating income 38,028 28,383 16,945 Operating Expenses Interest on borrowings 3,267 3,415 3,408 Fees to Bank 160 160 160 Other operating expenses 641 569 592 Total operating expenses 4,068 4,144 4,160 Income before equity in undistributed income of subsidiaries and income taxes 33,960 24,239 12,785 Equity in undistributed income of subsidiaries 22,580 27,971 17,405 Income before income taxes 56,540 52,210 30,190 Income tax benefit (expense) 663 861 (1,714 ) Net Income $ 57,203 $ 53,071 $ 28,476 STATEMENTS OF CASH FLOWS For The Year Ended December 31, (In thousands) 2019 2018 2017 Operating Activities Net income $ 57,203 $ 53,071 $ 28,476 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of subsidiaries (22,579 ) (27,971 ) (17,405 ) Increase in other assets (2,935 ) (1,772 ) (1,962 ) (Decrease) increase in due to subsidiaries (109 ) 82 (20 ) Increase (decrease) in other liabilities 4,298 (4,763 ) 3,721 Net cash provided by operating activities 35,878 18,647 12,810 Investing Activities Proceeds from sale of investments — 214 110 Net cash provided by investing activities — 214 110 Financing Activities Net proceeds from issuance of common stock 1,683 1,338 863 Common stock repurchases (20,795 ) (27 ) — Cash dividends paid on common stock (18,572 ) (17,170 ) (14,323 ) Net cash used in financing activities (37,684 ) (15,859 ) (13,460 ) Net (decrease) increase in cash, cash equivalents and restricted cash (1,806 ) 3,002 (540 ) Cash, cash equivalents and restricted cash at beginning of year 32,367 29,365 29,905 Cash, cash equivalents and restricted cash at end of year $ 30,561 $ 32,367 $ 29,365 |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The following table presents a summary of the quarterly results of operations for the periods indicated: December 31, 2019 2018 (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $ 42,009 $ 42,437 $ 42,520 $ 41,552 $ 35,278 $ 37,089 $ 38,557 $ 40,453 Interest expense 10,114 10,864 10,597 9,313 6,376 7,608 8,134 8,866 Net interest income 31,895 31,573 31,923 32,239 28,902 29,481 30,423 31,587 Provision (credit) for credit losses 744 1,173 730 214 (497 ) 983 354 7 Non-interest income 9,389 10,037 10,739 11,948 8,804 9,501 10,392 9,479 Non-interest expense 22,783 23,958 23,748 24,814 22,304 22,895 23,166 23,580 Income before income tax expense 17,757 16,479 18,184 19,159 15,899 15,104 17,295 17,479 Income tax expense 3,484 3,275 3,696 3,921 3,079 2,887 3,238 3,502 Net income $ 14,273 $ 13,204 $ 14,488 $ 15,238 $ 12,820 $ 12,217 $ 14,057 $ 13,977 Per common share: Basic $ 0.91 $ 0.85 $ 0.94 $ 1.00 $ 0.82 $ 0.78 $ 0.90 $ 0.90 Diluted $ 0.91 $ 0.85 $ 0.94 $ 0.99 $ 0.82 $ 0.78 $ 0.90 $ 0.89 |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation . The accompanying consolidated financial statements include the accounts of the Company and the Bank (which includes the consolidated accounts of 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, 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 CCTA and UBCT. These entities are unconsolidated subsidiaries of the Company. |
Reclassifications | Reclassifications . Certain reclassifications have been made to prior year amounts to conform to the current year's presentation. |
Use of Estimates | Use of Estimates . The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could vary from these estimates as a result of changing conditions and future events. Several estimates are particularly critical and are susceptible to significant near-term change, including the ALL, the accounting for business combinations including subsequent impairment analyses for goodwill and other intangible assets, accounting for income taxes, postretirement benefits, and asset impairment assessments, including the assessment of OTTI of investment securities. |
Subsequent Events | Subsequent Events . The Company has evaluated events and transactions subsequent to December 31, 2019 for potential recognition or disclosure as required by GAAP. |
Significant Concentration of Credit Risk | Significant Concentration of Credit Risk. The Company makes loans primarily to customers in Maine, Massachusetts and New Hampshire. Although it has a diversified loan portfolio, a large portion of the Company's loans are secured by commercial or residential real estate and is subject to real estate market volatility within these states. Furthermore, the debtors' ability to honor their contracts is highly dependent upon other economic factors throughout Maine, Massachusetts and New Hampshire. The Company does not generally engage in non-recourse lending and typically will require the principals of any commercial borrower to obligate themselves personally on the loan. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash . For the purposes of reporting, cash and cash equivalents consist of cash on hand and amounts due from banks. The Company is required by the FRB to maintain cash reserves equal to a percentage of deposits. The Company maintains the reserve balances in cash on hand or at the FRB. Certain cash balances will be designated as restricted as required by certain contracts with unrelated third parties. |
Investments | Investments. Debt investments for which the Company has the positive intent and ability to hold to maturity are classified as HTM and recorded at amortized cost on the consolidated statements of condition. Debt investments that are not classified as HTM or trading are classified as AFS and are carried at fair value on the Company's consolidated statements of condition with subsequent changes to fair value recorded within AOCI, net of tax. For periods prior to January 1, 2018, the Company's investments in equity securities with a readily determinable fair value may have been classified as trading or AFS. The classification was determined at the time of purchase and reflected the Company's corporate goals and objectives. For such periods, equity securities with a readily determinable fair value classified as AFS were carried on the consolidated statements of condition at fair value. Subsequent changes to fair value were accounted for within AOCI, net of tax, on consolidated statements of condition. The Company did not have any equity securities with a readily determinable fair value classified as trading as of December 31, 2017. Effective January 1, 2018, upon adoption of ASU No. 2016-01, Income Statement- Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities ("ASU 2016-01"), equity investments may no longer be designated and accounted for as AFS securities, with the change in fair value recognized within AOCI, net of tax. Instead, the change in fair value of equity investments with a readily determinable fair value are to be recognized within net income and carried at fair value on the balance sheet. Upon adoption of ASU 2016-01, a cumulative-effect adjustment of $198,000 was recorded to reclassify the unrealized gain, net of tax, on the Company's equity securities with a readily determinable fair value as of January 1, 2018, previously designated as AFS, from AOCI to retained earnings. This provision of ASU 2016-01 was applied prospectively. For the year ended December 31, 2019 and 2018, the Company recorded the change in fair value for its equity securities with a readily determinable fair value within other income on the consolidated statements of income. Refer to Note 2 for further details. Management conducts a quarterly review and evaluation of its debt investments designated as AFS or HTM and, prior to the adoption of ASU 2016-01, effective January 1, 2018, conducted a quarterly review of its equity investments designated as AFS to determine if the decline in fair value of any security appeared to be other-than-temporary. The factors considered included, but were not limited to: the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, the credit ratings of the security or issuer, whether the decline in fair value appears to be issuer specific or, alternatively, a reflection of general market or industry conditions, and the Company’s intent and ability to hold the security for a period of time sufficient to allow for a recovery in fair value. For its debt investments classified as AFS or HTM that it does not intend to sell and is not more-likely-than-not will be required to sell before recovery of its amortized cost basis, the other-than-temporary decline in the fair value of the debt security related to: (i) credit loss is recognized in non-interest income on the consolidated statements of income; and (ii) other factors is recognized in AOCI, net of tax. For the Company's debt securities it intends to sell and/or more-likely-than-not will be required to sell before recovery of amortized cost, an OTTI is recorded equal to the entire difference between the debt investment's amortized cost basis and its fair value within non-interest income on the consolidated statements of income. Prior to the adoption of ASU 2016-01, for the Company's equity investments with a readily determinable fair value classified as AFS, for which the Company determined that the decline in the fair value was other-than-temporary, the Company would recognize the impairment within non-interest income on the consolidated statements of income when identified. Upon adoption of ASU 2016-01, effective January 1, 2018, the change in fair value of the Company's equity investments with a readily determinable fair value are recorded within net income and are no longer assessed for OTTI. The Company, through the Bank, is a member of the FHLBB and FRBB, and, as a member, is required to hold a certain amount of FHLBB and FRB common stock. These equity stocks are non-marketable and are outside the scope of ASU 2016-01, and are reported at cost within other investments on the consolidated statements of condition. The Company evaluates its FHLBB and FRB common stock for impairment based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. Purchase premiums and discounts are recognized in interest income on the consolidated statements of income using the interest method over the period to maturity or issuer call option date, if earlier, and are recorded on the trade date. Upon sale of an investment security, the realized gain or loss on the sale is recognized within non-interest income on the consolidated statements of income. The cost basis of our investments sold is determined using the specific identification method. |
Loans Held for Sale | Loans Held for Sale. The Company has elected the fair value option for loans classified as held for sale on the consolidated statements of condition. Designation of loans as held for sale is determined based on the Company's intent and is, typically, completed as the loans are underwritten. The fair value for loans held for sale is determined using quoted secondary market prices. Management consistently evaluates the Company's loan portfolio in conjunction with asset/liability management practices, and will opt to sell certain residential mortgage loans to manage the Company's interest rate exposure and for other business purposes, including generating fee income through mortgage sale gains. |
Originated Loans and Acquired Loans | Originated Loans and Acquired Loans . Loans are reported at amortized cost, or fair value in the case of acquired loans, adjusted for any partial charge-offs and net of any deferred loan fees or costs. For originated loans, interest income is accrued based upon the daily principal amount outstanding except for loans on non-accrual status. For acquired loans, interest income is also accrued based upon the daily principal amount outstanding and is then further adjusted by the accretion of any discount or amortization of any premium associated with the loan. For originated loans, loan fees and certain direct origination costs are deferred and amortized into interest income over the contractual term of the loan using the level-yield method. When a loan is paid off, the unamortized portion is recognized in interest income. A loan is classified as non-accrual generally when it becomes 90 days past due as to interest or principal payments, or sooner if management considers such action to be prudent. All previously accrued but unpaid interest on non-accrual loans is reversed from interest income in the period in which the loan is considered delinquent and the amortization of any unamortized net deferred origination loan fees/costs stops. Interest payments received on non-accrual loans, including impaired loans, are applied as a reduction of principal. A loan remains on non-accrual status until all principal and interest amounts contractually due are brought current and future payments are reasonably assured. Should a loan transition from non-accrual status back to accrual status, the unrecognized interest earned during the period the loan was on non-accrual status and unamortized deferred origination fees and costs are recognized over the remaining contractual life of the loan using the level-yield method. |
ALL | ALL. The ALL is established through provisions for loan losses charged to income. Losses on loans, including impaired loans, are charged to the ALL when all or a portion of a loan is deemed to be uncollectible. Recoveries of loans previously charged off are credited to the ALL when realized. In determining the appropriate level of ALL, the Company uses a methodology to systematically measure the amount of estimated loan loss exposure inherent in the loan portfolio. The methodology includes three elements: (1) identification of loss allocations for certain specific loans, (2) loss allocation factors for certain loan types based on credit risk and loss experience, and (3) general loss allocations for other qualitative and economic factors. The allocations for specific loans is determined based on loans that have a principal balance of $500,000 or more that are classified as substandard or doubtful and are on non-accrual status. Such loans are classified as impaired and an allowance is established when the discounted expected future cash flows (or collateral value or observable market price) of the impaired loan is lower than the recorded investment of that loan. Loans that do not meet the above criteria are separated into risk pools by portfolio segment and risk ratings. The Company then evaluates each risk pool collectively for impairment through loss allocation factors. The Company uses a risk rating system for certain loan segments to determine the credit quality of these loan pools and applies the related loss allocation factors. In assessing the risk rating of a particular loan, the Company considers, among other factors, the obligor’s debt capacity, financial condition, the level of the obligor’s earnings, the amount and sources of repayment, the performance with respect to loan terms, the adequacy of collateral, the level and nature of contingent liabilities, management strength, and the industry in which the obligor operates. These factors are based on an evaluation of historical information, as well as subjective assessment and interpretation of current conditions. Emphasizing one factor over another, or considering additional factors that may be relevant in determining the risk rating of a particular loan but which are not currently an explicit part of the Company's methodology, could impact the risk rating assigned to that loan. The Company at least annually, and more frequently as deemed prudent by management, reassesses and revises the loss allocation factors used in the assignment of loss exposure to appropriately reflect the analysis of loss experience. Portfolios of more homogeneous populations of loans including home equity and consumer loans are analyzed as groups taking into account delinquency rates and other economic conditions that may affect the ability of borrowers to meet debt service requirements, including interest rates and energy costs. The Company also considers regulatory guidance, historical loss ranges, portfolio composition, and other changes in the portfolio. An additional allocation is determined based on a judgmental process whereby management considers qualitative and quantitative assessments of other environmental factors. Since the methodology is based upon historical experience and trends, as well as management’s judgment, factors may arise that result in different estimations. Significant factors that could give rise to changes in these estimates may include, but are not limited to, changes in economic conditions in the Company’s market areas, concentration of risk, declines in local property values, and regulatory guidance. Loans past due 30 days or more are considered delinquent. In general, secured loans that are delinquent for 90 consecutive days are placed on non-accrual status, and are subject to impairment and/or loss assessment in accordance with established internal policy. In general, unsecured loans that are delinquent for 90 consecutive days are charged off. In cases where a borrower experiences financial difficulties and the Company makes certain concessionary modifications to contractual terms, the loan is classified as a TDR. Modifications may include adjustments to interest rates, extensions of maturity, and other actions intended to minimize economic loss and avoid foreclosure or repossession of collateral. An allowance is established on a loan classified as a TDR if the present value of expected future cash flows (or, alternatively, the observable market price of the loan or the fair value of the collateral if the loan is collateral-dependent) is less than the recorded investment of the loan. Non-accrual loans that are restructured as TDRs remain on non-accrual status for a period of at least six months to demonstrate that the borrower can meet the restructured terms. If the restructured loan is on accrual status prior to being modified, it is reviewed to determine if the modified loan should remain on accrual status. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan is classified as a non-accrual loan. Loans classified as TDRs remain classified as such for the life of the loan, except in limited circumstances, when it is determined that the borrower is performing under the modified terms and the restructuring agreement specified an interest rate greater than or equal to an acceptable market rate for a comparable new loan at the time of the restructuring. |
Goodwill and Core Deposit Intangible Assets | Goodwill and Core Deposit Intangible Assets . Goodwill represents the excess cost of an acquisition over the fair value of the net assets acquired. Goodwill is not subject to amortization but rather is evaluated at least annually for impairment, or as events and circumstances dictate, at the reporting unit level. Any impairment is charged to non-interest expense on the consolidated statements of income. The Company evaluates goodwill for impairment annually as of November 30 th , or more frequently as warranted by external and/or internal factors. The Company may utilize a qualitative analysis (commonly referred to as "Step Zero") and/or a quantitative analysis to evaluate goodwill for impairment. The Company has the option to by-pass the qualitative analysis for any given year and perform the quantitative analysis. Using a qualitative analysis to assess goodwill for impairment, the Company will consider various factors to determine if it is more-likely-than-not that its carrying value of its reporting unit exceeds its fair value. These factors include, but are not limited to, the overall macro-economic environment; industry economic and regulatory environment; and company specific factors, including, but not limited to, performance, Company common stock share price, competition and/or significant changes in senior management. Should the Company determine it is more-likely-than-not that the carrying value of its reporting unit exceeds its fair value, then it would then perform the next step of the goodwill impairment test, which is a quantitative analysis. If the Company were to determine it is not more-likely-than-not that the carrying value of its reporting unit exceeds its fair value, the Company would have completed its goodwill impairment evaluation and concluded goodwill was not impaired. After performing the qualitative analysis and determining it is more-likely-than-not that the carrying value of its reporting unit exceeds its fair value or if the Company by-passed the qualitative analysis, it would perform a quantitative analysis to determine if the carrying value of its reporting unit exceeds its fair value (i.e. "Step 1"). The Company may use various valuation techniques such as a discounted cash flow model, a comparative market transaction multiple approach and/or other valuation methods, to determine the reporting unit's fair value. If the reporting unit's fair value exceeds its carrying value, then goodwill is not impaired and no further assessment is required. However, if the reporting unit's fair value is less than its carrying value, the Company would then be required to determine the fair value of tangible and identifiable intangible assets and liabilities for the reporting unit, to derive an implied fair value of goodwill (i.e. "Step 2"). If the reporting unit's implied fair value of goodwill exceeds its carrying value, then goodwill is not impaired. However, if the reporting unit's implied fair value of goodwill is less than its carrying value, an impairment charge is recorded to carry goodwill at its calculated implied fair value. The Company completed its annual goodwill impairment testing for its reporting unit as of November 30, 2019 using the qualitative analysis and it was determined that it was not more-likely-than-not that its carrying value exceeded its fair value. As such, goodwill was no t impaired as of November 30, 2019. Goodwill was tested for impairment as of November 30, 2018 and 2017 and was no t impaired. Core deposit intangible assets represents the estimated value of acquired customer relationships and is 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 management must compare the fair value of the intangible assets to its carrying value. If the fair value of the intangible assets exceeds their carrying value then the intangible assets are not impaired. If the fair value of the intangible assets is less than its carrying value then an impairment charge is recorded to mark the carrying value of the intangible assets to fair value. For the year ended December 31, 2019 , 2018 or 2017 , there were no events or changes in circumstances that indicated the carrying amount may not be recoverable. |
BOLI | BOLI . BOLI represents the cash surrender value of life insurance policies on the lives of certain active and retired employees where the Company is the beneficiary and is recorded as an asset on the consolidated statements of condition. Increases in the cash surrender values of the policies, as well as death benefits received, net of any cash surrender value, are recorded in non-interest income on the consolidated statements of income, and are not subject to income taxes. The Company reviews the financial strength of the insurance carriers prior to the purchase of life insurance policies and no less than annually thereafter. A life insurance policy with any individual carrier is limited to 15% of Tier 1 capital (as defined for regulatory purposes) and the total cash surrender value of life insurance policies is limited to 25% of Tier 1 capital. |
Premises and Equipment | Premises and Equipment . Premises and equipment purchased in normal course are stated at cost less accumulated depreciation, while premises and equipment obtained through the acquisition of a company or branch acquisition are stated at their estimated fair values as of the acquisition date less accumulated depreciation that occurred subsequent to the acquisition date. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the lesser of the term of the respective lease or the estimated life of the improvement. Land is carried at cost. Repairs and maintenance costs that are not an improvement or do not extend the estimated useful life of the asset are expensed as incurred. Software costs, including cloud-based software licenses that qualify as internal-use software, are stated at cost less accumulated amortization within other assets on the consolidated statements of condition. Amortization expense is calculated using the straight-line method over the estimated useful lives of the related assets. Cloud-based software costs that do not qualify as internal-use software are capitalized as service contracts within other assets on the consolidated statements of condition and expensed ratably over the term of the contract period. |
OREO | OREO . OREO properties acquired through foreclosure or deed-in-lieu of foreclosure are recorded initially at estimated fair value 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. Any subsequent declines in the fair value of a property are recorded as a valuation allowance on the asset. Any subsequent increases in the fair value of a property are recorded as reductions of the valuation allowance, but not below zero. At December 31, 2019 and 2018, OREO properties were carried within other assets on the consolidated statements of condition at $94,000 and $130,000, respectively. Upon a sale of an OREO property, any excess of the carrying value over the sale proceeds is recognized as a loss on sale. Any excess of sale proceeds over the carrying value of the OREO property is first applied as a recovery to the valuation allowance, if any, with the remainder being recognized as a gain on sale. Operating expenses, including legal and other direct expenses, and changes in the valuation allowance relating to foreclosed assets are included in other non-interest expense on the consolidated statements of income. |
Mortgage Banking | Mortgage Banking . Residential real estate mortgages are originated by the Company both for its portfolio and for sale into the secondary market. The transfer of these financial assets is accounted for as a sale when control over the asset has been surrendered. Control is deemed to be surrendered when (i) the asset has been isolated from the Company, (ii) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred asset, and (iii) the Company does not maintain effective control over the transferred asset through an agreement to repurchase it before its maturity. The Company records the gain on sale of the financial asset within mortgage banking income, net on the consolidated statements of income, net of direct and indirect costs incurred to originate the loan. Servicing assets are recognized as separate assets when servicing rights are acquired through the sale of residential mortgage loans with servicing rights retained. Capitalized servicing rights are initially recorded at fair value and reported within other assets on the consolidated statements of condition and recognized as income within non-interest income on the consolidated statements of income. Servicing rights are amortized in proportion to, and over the period of, the estimated future servicing of the underlying mortgages (typically, the contractual life of the mortgage). The amortization of mortgage servicing rights is recorded as a reduction of loan servicing fee income within non-interest income on the consolidated statements of income. Servicing assets are evaluated for impairment quarterly based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant characteristics, such as interest rates and terms. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Impairment of the servicing assets is recognized through a valuation allowance to the extent that fair value is less than the capitalized amount. If it is later determined that all or a portion of the impairment no longer exists, a reduction of the allowance may be recorded increasing income, but not below zero. Servicing fee income is recorded for fees earned for servicing loans for investors. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income within non-interest income on the consolidated statements of income when earned. |
Short-Term and Long-Term Borrowings | Short-Term and Long-Term Borrowings. Short-term borrowings are those that upon origination are scheduled to mature within one year. The Company's short-term borrowings may include, but are not limited to, FHLBB overnight and FHLBB advances, customer repurchase agreements, federal funds purchased, and line of credit advances. Long-term borrowings are those that upon origination are scheduled to mature in one or more years. The Company's long-term borrowings may include, but are not limited to, FHLBB advances, subordinated debentures, and wholesale repurchase agreements. The Company is required to post collateral for certain borrowings, for which it generally posts loans and/or investment securities as collateral. |
Income Taxes | Income Taxes . Income taxes are accounted for using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax implications attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. If current information suggests that it is not more-likely than-not that the Company will not be able to realize the deferred tax assets, a valuation allowance is established. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company assesses quarterly whether or not a valuation allowance on its deferred tax assets is necessary. If it is more- likely-than-not that the Company will not be able to realize the benefit of the deferred tax assets, then a valuation allowance is established on the deferred tax asset not expected to be realized. At December 31, 2019 and 2018, the Company did not carry a valuation allowance on its deferred tax assets. The Company accounts for its windfall tax benefits and shortfalls within income tax expense on the consolidated statements of income as a discrete period item in the period generated. |
EPS | EPS . Basic EPS excludes dilution and is computed by dividing net income applicable to common stock by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if certain securities or other contracts to issue common stock (such as stock options) were exercised or converted into additional common shares that would then share in the earnings of the Company. Diluted EPS is computed by dividing net income applicable to common stock by the weighted-average number of common shares outstanding for the period, plus an incremental number of common-equivalent shares computed using the treasury stock method. Unvested share-based payment awards which include the right to receive non-forfeitable dividends are considered to participate with common stock in undistributed earnings for purposes of computing EPS. Restricted share grants and management stock purchase grants are considered participating securities for this purpose. Accordingly, the Company is required to calculate basic and diluted EPS using the two-class method. The calculation of EPS using the two-class method (i) excludes any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities from the numerator and (ii) excludes the dilutive impact of the participating securities from the denominator. |
Postretirement Plans | Postretirement Plans . The Company sponsors various retirement plans for current and former employees, including a SERP for certain officers of the Company and a postretirement health care and life insurance plan to certain eligible retired employees. The SERP and postretirement benefit plans are unfunded and have no plan assets, and the Company has recorded a liability on the consolidated statements of condition. For the SERP, benefit obligations are estimated using the projected unit credit method. Under this method, each participant's benefits are attributed to years of service, taking into consideration future salary increases and the SERP's benefit allocation formula. Thus, the estimated total pension to which each participant is expected to become entitled to at retirement is broken down into units, each associated with a year of past or future credited service. For the SERP, an individual's estimated attributed benefit for valuation purposes related to a particular separation date is the benefit described under the SERP based on credited service as of the measurement date, but determined using the projected salary that would be used in the calculation estimate of the benefit on the expected separation date. The Company has obligations with various active and retired employees related to certain postretirement benefits. The obligations are based on the employee's date of hire and years of service through retirement, with the associated cost recognized over the requisite service period. Under the plan, the postretirement benefit amount the Company will pay for any given year for an individual is capped. Furthermore, the Company's obligation exists until the participant qualifies for Medicare. The accrual methodology results in an accrued amount at the full eligibility date equal to the then present value of all of the future benefits expected to be paid. Net periodic benefits cost (credit) includes service costs and interest costs based on the assumed discount rate, amortization of prior service costs due to plan amendments and/or amortization of actuarial gains or losses. As prior service costs and actuarial gains or losses are amortized, they are reclassified from AOCI on the consolidated statements of condition into other expenses on the consolidated statements of income. The amortization of actuarial gains and losses is determined using the 10% corridor minimum amortization approach and is taken over the average remaining future working lifetime of the plan participants. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers. The Company receives a portion of its non-interest income from contracts with customers. ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASC 606") was adopted by the Company on January 1, 2018. Refer to Note 16 for further details. |
Stock-Based Compensation | Stock-Based Compensation . The fair value of restricted stock awards, restricted stock units and stock options is determined on the grant date. For restricted stock awards and units, compensation is recognized ratably over the requisite service period equal to the fair value of the award. For stock option awards, the fair value is determined using the Black-Scholes option-pricing model. Compensation expense for stock option awards is recognized ratably over the requisite service period equal to the fair value of the award. For performance-based share awards, the Company estimates the degree to which performance conditions will be met to determine the number of shares that will vest and the related compensation expense. Compensation expense is adjusted in the period such estimates change. The Company does not assume an estimated forfeiture rate on its nonvested share-based awards in its reporting of share-based compensation expense. Should a share-based award be forfeited, the Company would reverse all associated compensation expense previously recorded on the nonvested shares. |
Off-Balance Sheet Credit Related Financial Instruments | Off-Balance Sheet Credit Related Financial Instruments . In the ordinary course of business, the Company enters into commitments to extend credit, including commercial letters of credit and standby letters of credit. Such financial instruments are recorded as loans when they are funded. Refer to Note 11 for further details. |
Derivative Financial Instruments Designated as Hedges | Derivative Financial Instruments Designated as Hedges . The Company recognizes all derivatives in the consolidated statements of condition at fair value. On the date the Company enters into the derivative contract, the Company designates the derivative as a hedge of either a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), or a held for trading instrument (“trading instrument”). The Company formally documents relationships between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedge transactions. The Company also assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are effective in offsetting changes in cash flows or fair values of hedged items. Changes in fair value of a derivative that is effective and that qualifies as a cash flow hedge are recorded in OCI and are reclassified into earnings when the forecasted transaction or related cash flows affect earnings. Changes in fair value of a derivative that qualifies as a fair value hedge and the change in fair value of the hedged item are both recorded in earnings and offset each other when the transaction is effective. Those derivatives that are classified as trading instruments are recorded at fair value with changes in fair value recorded in earnings. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the cash flows of the hedged item, that it is unlikely that the forecasted transaction will occur, or that the designation of the derivative as a hedging instrument is no longer appropriate. The Company adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12") in the fourth quarter of 2018. ASU 2017-12 required the Company to apply the requirements to existing hedging relationships on the date of adoption, and the effect of the adoption on retained earnings was reflected as of January 1, 2018. The guidance did not have an impact on the Company's derivatives that qualified as hedges on the date of adoption, and, thus, no adjustment was made to beginning retained earnings. In conjunction with the adoption of ASU 2017-12, the Company made the transition election to reclassify $92.0 million in book value of securities from HTM to AFS that qualified. |
Segment Reporting | Segment Reporting . Operating segments are the components of an entity for which separate financial information is available and evaluated regularly by the chief operating decision-maker in order to allocate resources and assess performance. The Company's chief operating decision-maker assesses consolidated financial results to make operating and strategic decisions, assess performance, and allocate resources. Therefore, the Company has determined that its business is conducted in one reportable segment and represents the consolidated financial statements of the Company. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted in 2019 ASU No. 2016-02 , Leases (Topic 842) ("ASU 2016-02"): In February 2016, the FASB issued ASU 2016-02 to increase transparency and comparability among organizations by recognizing lease assets and liabilities (including operating leases) on the balance sheet and disclosing key information about leasing arrangements. Current lease accounting does not require the inclusion of operating leases in the balance sheet. 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 a lease. • 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 reasonable 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 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 statement 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 6 for further details. Recent Accounting Pronouncements to be Adopted in 2020 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"). The FASB issued ASU 2016-13, commonly referred to as “CECL,” to require timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The Company will adopt ASU 2016-13, as amended, effective January 1, 2020, using a modified retrospective approach and will record a cumulative-effect adjustment to retained earnings. The measurement of expected credit losses under CECL is applicable to financial assets measured at amortized cost, including loan receivables and HTM debt securities. CECL also applies to certain off-balance sheet credit exposures, such as loan commitments, standby letters of credit, financial guarantees and other similar investments. In addition, ASU 2016-13 made changes to the accounting for AFS debt securities as a company will no longer immediately write-down a security for any impairment deemed to be a credit loss. Instead, a company will be required to present credit losses on AFS debt securities as an allowance on investments if it does not intend to sell the impaired security or it is not more-likely-than-not required to sell the impaired security before recovery of its amortized cost basis. The Company assembled a cross-functional project team that met regularly to address the additional data requirements, to determine the approach for implementation and to identify new internal controls over enhanced accounting processes for estimating the allowance for credit losses (“ACL”). This included assessing the adequacy of existing loan and loss data, as well as assessing models for default and loss estimates. The Company is currently working to finalize its internal CECL policy and internal control framework. The Company has substantially completed the development of its process for estimation of the allowance for loan losses and off-balance sheet exposures (i.e. ACL). To estimate the allowance for loan losses, the Company will primarily utilize a discounted cash flow model that contains additional assumptions to calculate credit losses over the estimated life of financial assets and will include the impact of forecasted economic conditions. To estimate the off-balance sheet credit exposures, which are primarily unfunded loan commitments, the Company will apply certain assumptions, including, but not limited to, a funding assumption and expected loss rate. The Company has performed a parallel calculation as of December 31, 2019, comparing the allowance for loan losses calculated under current accounting guidance, commonly referred to as the “Incurred Model,” to the ACL calculated under CECL. Upon adoption of CECL in the first quarter of 2020, the Company anticipates that it will result in an immaterial impact to its consolidated financial statements, including the ACL and retained earnings, as well as the Company and Bank’s regulatory capital ratios. ASU No. 2017-04 , Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"): The FASB issued ASU 2017-04 to reduce the cost and complexity of the goodwill impairment test. To simplify the subsequent measurement of goodwill, "Step 2" of the goodwill impairment test was eliminated. Instead, in accordance with ASU 2017-04, a Company will recognize an impairment of goodwill to the extent the carrying value of a reporting unit exceeds its fair value (i.e. "Step 1"). The Company will adopt ASU 2017-04 on January 1, 2020. Effective January 1, 2020, prospectively the Company will no longer give consideration to "Step 2" when performing its goodwill impairment test. The Company does not expect the ASU to have a material impact on its consolidated financial statements. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2019 Equity securities - bank stock (carried at fair value) $ 544 $ 1,130 $ — $ 1,674 FHLBB (carried at cost) 6,601 — — 6,601 FRB (carried at cost) 5,374 — — 5,374 Total other investments $ 12,519 $ 1,130 $ — $ 13,649 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 costs and estimated fair values of AFS and HTM securities, as of the dates indicated: (In thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value December 31, 2019 AFS Investments (carried at fair value): Obligations of states and political subdivisions $ 115,632 $ 2,779 $ (328 ) $ 118,083 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 462,593 3,398 (2,605 ) 463,386 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 325,200 3,183 (2,478 ) 325,905 Subordinated corporate bonds 10,553 191 — 10,744 Total AFS investments $ 913,978 $ 9,551 $ (5,411 ) $ 918,118 HTM Investments (carried at amortized cost): Obligations of states and political subdivisions $ 1,302 $ 57 $ — $ 1,359 Total HTM investments $ 1,302 $ 57 $ — $ 1,359 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 Securities (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 December 31, 2019 AFS Investments: Obligations of states and political subdivisions 11 $ 30,459 $ (328 ) $ — $ — $ 30,459 $ (328 ) Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 59 162,964 (1,850 ) 63,633 (755 ) 226,597 (2,605 ) Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 35 66,549 (733 ) 68,614 (1,745 ) 135,163 (2,478 ) Total AFS investments 105 $ 259,972 $ (2,911 ) $ 132,247 $ (2,500 ) $ 392,219 $ (5,411 ) 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 ) |
Company's Sales of Securities | The following table details the Company’s sales of investments for the periods indicated below: For The Year Ended December 31, (In thousands) 2019 2018 2017 Proceeds from sales of AFS investments (1) $ 207,001 $ 56,155 $ 20,366 Gross realized gains 1,427 32 869 Gross realized losses (1,532 ) (695 ) (14 ) |
Amortized Cost and Estimated Fair Values of Debt Securities by Contractual Maturity | The amortized cost and estimated fair values of AFS and HTM investments by contractual maturity at December 31, 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 76,027 76,341 Due after five years through ten years 207,757 208,866 Due after ten years 630,194 632,911 $ 913,978 $ 918,118 HTM Investments Due in one year or less $ — $ — Due after one year through five years 512 532 Due after five years through ten years 790 827 Due after ten years — — $ 1,302 $ 1,359 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Composition of Loan Portfolio, Excluding Residential Loans Held for Sale | The composition of the Company’s loan portfolio, excluding residential loans held for sale, was as follows for the dates indicated: December 31, (In thousands) 2019 2018 Residential real estate $ 1,070,374 $ 992,866 Commercial real estate 1,243,397 1,269,533 Commercial 421,108 381,780 Home equity 312,779 327,763 Consumer 25,772 20,624 HPFC 21,593 33,656 Total loans $ 3,095,023 $ 3,026,222 |
Schedule of Loan Balances for Each Portfolio Segment | The loan balances for each portfolio segment presented above are net of their respective net unamortized fair value mark discount on acquired loans and net unamortized loan origination costs for the dates indicated: December 31, (In thousands) 2019 2018 Net unamortized fair value mark discount on acquired loans $ 2,593 $ 3,936 Net unamortized loan origination costs (3,111 ) (1,865 ) Total $ (518 ) $ 2,071 |
Activity in Allowance for Loan Losses by Portfolio Segment | The following table 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 At or For the Year Ended December 31, 2019: ALL: Beginning balance $ 6,071 $ 11,654 $ 3,620 $ 2,796 $ 234 $ 337 $ 24,712 Loans charged off (462 ) (300 ) (1,167 ) (412 ) (301 ) (71 ) (2,713 ) Recoveries 16 49 225 1 19 — 310 Provision (credit) (1) 217 1,011 1,091 38 555 (50 ) 2,862 Ending balance $ 5,842 $ 12,414 $ 3,769 $ 2,423 $ 507 $ 216 $ 25,171 ALL balance attributable loans: Individually evaluated for impairment $ 364 $ 30 $ — $ 69 $ — $ — $ 463 Collectively evaluated for impairment 5,478 12,384 3,769 2,354 507 216 24,708 Total ending ALL $ 5,842 $ 12,414 $ 3,769 $ 2,423 $ 507 $ 216 $ 25,171 Loans: Individually evaluated for impairment $ 3,384 $ 402 $ 319 $ 373 $ — $ — $ 4,478 Collectively evaluated for impairment 1,066,990 1,242,995 420,789 312,406 25,772 21,593 3,090,545 Total loan balances $ 1,070,374 $ 1,243,397 $ 421,108 $ 312,779 $ 25,772 $ 21,593 $ 3,095,023 At or 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 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 loan balances $ 992,866 $ 1,269,533 $ 381,780 $ 327,763 $ 20,624 $ 33,656 $ 3,026,222 (In thousands) Residential Real Estate Commercial Real Estate Commercial Home Equity Consumer HPFC Total At or For the Year Ended December 31, 2017: ALL: Beginning balance $ 4,160 $ 12,154 $ 3,755 $ 2,194 $ 181 $ 672 $ 23,116 Loans charged off (482 ) (124 ) (1,014 ) (434 ) (124 ) (290 ) (2,468 ) Recoveries 30 141 301 2 17 6 497 Provision (credit) (1) 1,378 (308 ) 1,129 605 159 63 3,026 Ending balance $ 5,086 $ 11,863 $ 4,171 $ 2,367 $ 233 $ 451 $ 24,171 ALL balance attributable loans: Individually evaluated for impairment $ 568 $ 1,441 $ — $ — $ — $ — $ 2,009 Collectively evaluated for impairment 4,518 10,422 4,171 2,367 233 451 22,162 Total ending ALL $ 5,086 $ 11,863 $ 4,171 $ 2,367 $ 233 $ 451 $ 24,171 Loans: Individually evaluated for impairment $ 5,171 $ 6,199 $ 1,791 $ 429 $ — $ — $ 13,590 Collectively evaluated for impairment 853,198 1,157,824 371,609 322,949 18,149 45,120 2,768,849 Total loan balances $ 858,369 $ 1,164,023 $ 373,400 $ 323,378 $ 18,149 $ 45,120 $ 2,782,439 (1) The provision (credit) for loan losses excludes any impact for the change in the reserve for unfunded commitments, which represents management's estimate of the amount required to reflect the probable inherent losses on outstanding letters of credit and unused lines of credit. The reserve for unfunded commitments was presented within accrued interest and other liabilities on the consolidated statements of condition. At December 31, 2019 , 2018 , and 2017 , the reserve for unfunded commitments was $21,000 , $22,000 and $20,000 , respectively. |
Schedule of Provision for Credit Losses | The following table reconciles the provision for loan losses to the provision for credit losses as presented on the consolidated statement of income for the periods indicated: For the Year Ended December 31, (In thousands) 2019 2018 2017 Provision for loan losses $ 2,862 $ 845 $ 3,026 Change in reserve for unfunded commitments (1 ) 2 9 Provision for credit losses $ 2,861 $ 847 $ 3,035 |
Credit Risk Exposure Indicators by Portfolio Segment | The following table 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 December 31, 2019: Pass (Grades 1 – 6) $ 1,062,825 $ 1,196,683 $ 415,870 $ — $ — $ 20,667 $ 2,696,045 Performing — — — 310,653 25,748 — 336,401 Special Mention (Grade 7) 473 31,753 2,544 — — 89 34,859 Substandard (Grade 8) 7,076 14,961 2,694 — — 837 25,568 Non-performing — — — 2,126 24 — 2,150 Total $ 1,070,374 $ 1,243,397 $ 421,108 $ 312,779 $ 25,772 $ 21,593 $ 3,095,023 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 (Including Loans Past Due Over Ninety Days and Non Accrual Loans) and Summary of Non Accrual Loans, Which Include Troubled Debt Restructured Loans, and Loans Past Due Over Ninety Days and Accruing | The following is a loan aging analysis by portfolio segment (including loans past due over 90 days and non-accrual loans) and a summary of non-accrual loans, which include TDRs, and loans past due over 90 days and accruing as of the following dates: (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 December 31, 2019: Residential real estate $ 2,297 $ 627 $ 2,598 $ 5,522 $ 1,064,852 $ 1,070,374 $ — $ 4,096 Commercial real estate 267 1,720 544 2,531 1,240,866 1,243,397 — 1,122 Commercial 548 — 417 965 420,143 421,108 — 420 Home equity 681 238 1,459 2,378 310,401 312,779 — 2,130 Consumer 108 31 23 162 25,610 25,772 — 24 HPFC — 243 288 531 21,062 21,593 — 364 Total $ 3,901 $ 2,859 $ 5,329 $ 12,089 $ 3,082,934 $ 3,095,023 $ — $ 8,156 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 for the dates indicated: Number of Contracts Recorded Investment Specific Reserve (In thousands, except number of contracts) December 31, December 31, December 31, 2019 2018 2019 2018 2019 2018 Residential real estate 22 25 $ 2,869 $ 3,614 $ 364 $ 443 Commercial real estate 2 2 338 347 30 23 Commercial 2 2 123 141 — — Consumer and home equity 1 2 299 304 69 162 Total 27 31 $ 3,629 $ 4,406 $ 463 $ 628 |
Summary of All Troubled Debt Restructuring Loans (Accruing and Non Accruing) by Portfolio Segment | The following represents loan modifications that qualify as TDRs that occurred during the periods indicated: Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Specific Reserve (In thousands, except number of contracts) For the Year Ended December 31, For the Year Ended December 31, For the Year Ended December 31, For the Year Ended December 31, 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 Residential real estate: Maturity concession — — 2 $ — $ — $ 298 $ — $ — $ 298 $ — $ — $ 15 Interest rate concession — — 1 — — 134 — — 145 — — — Interest rate and maturity concession 2 2 1 64 231 148 69 254 156 15 50 30 Payment deferral — 1 — — 166 — — 166 — — 45 — Home equity: Interest rate and maturity concession — — 1 — — 315 — — 315 — — — Total 2 3 5 $ 64 $ 397 $ 895 $ 69 $ 420 $ 914 $ 15 $ 95 $ 45 |
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 Year Ended (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2019: With related allowance recorded: Residential real estate $ 2,395 $ 2,395 $ 364 $ 2,989 $ 110 Commercial real estate 128 128 30 130 11 Commercial — — — 292 — Home equity 318 318 69 522 — Consumer — — — — — HPFC — — — — — Ending balance 2,841 2,841 463 3,933 121 Without related allowance recorded: Residential real estate 989 1,116 — 1,258 21 Commercial real estate 274 433 — 381 13 Commercial 319 685 — 238 7 Home equity 55 192 — 115 — Consumer — — — 1 — HPFC — — — — — Ending balance 1,637 2,426 — 1,993 41 Total impaired loans $ 4,478 $ 5,267 $ 463 $ 5,926 $ 162 December 31, 2018: With related 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 related 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 For the Year Ended (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2017: With related allowance recorded: Residential real estate $ 3,858 $ 3,858 $ 568 $ 3,177 $ 131 Commercial real estate 5,422 5,422 1,441 8,900 22 Commercial — — — 31 — Home equity — — — 125 — Consumer — — — — — HPFC — — — 24 — Ending balance 9,280 9,280 2,009 12,257 153 Without related allowance recorded: Residential real estate 1,313 1,673 — 1,345 15 Commercial real estate 777 1,084 — 1,132 29 Commercial 1,791 2,964 — 1,920 10 Home equity 429 495 — 310 8 Consumer — — — 2 — HPFC — — — — — Ending balance 4,310 6,216 — 4,709 62 Total impaired loans $ 13,590 $ 15,496 $ 2,009 $ 16,966 $ 215 |
Goodwill and Core Deposit Int_2
Goodwill and Core Deposit Intangible Assets Goodwill and Core Deposit Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Intangible Assets [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The gross carrying amount and accumulated amortization of core deposit intangible assets were as follows at the periods indicated: December 31, 2019 2018 (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Core deposit intangible $ 6,451 $ (2,926 ) $ 3,525 $ 6,451 $ (2,221 ) $ 4,230 |
Schedule of Expected Amortization Schedule | The following table reflects the amortization expense for core deposit intangible assets over the period of estimated economic benefit: (In thousands) Core Deposit Intangible 2020 $ 682 2021 655 2022 625 2023 592 2024 556 Thereafter 415 Total $ 3,525 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | Details of premises and equipment, at cost, for the periods indicated, were as follows: December 31, (In thousands) 2019 2018 Buildings and leasehold improvements $ 46,856 $ 47,548 Furniture, fixtures and equipment 18,915 26,288 Land and land improvements 9,198 9,217 Total cost 74,969 83,053 Accumulated depreciation and amortization (33,133 ) (40,558 ) Net premises and equipment $ 41,836 $ 42,495 Depreciation and amortization expense for the periods indicated were as follows: (In thousands) For The Year Ended December 31, Fixed Asset Type Income Statement Line Item 2019 2018 2017 Furniture and equipment Furniture, equipment and data processing $ 2,132 $ 1,938 $ 1,874 Premises Net occupancy costs 1,593 1,609 1,643 Software Furniture, equipment and data processing 166 218 244 Total $ 3,891 $ 3,765 $ 3,761 |
Schedule of Capital and Operating Lease Obligations | 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 (Tables)
Leases Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | 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: December 31, 2019 (In thousands) Balance Sheet Line Item Operating Leases Finance Leases Total Right-of-use assets Other Assets $ 13,002 $ 1,502 $ 14,504 Lease liabilities Other Liabilities 13,059 1,665 14,724 In accordance with ASC 842, the components of lease expense for the periods indicated were as follows: (In thousands) For the Year Ended December 31, 2019 Lease Cost: Operating lease cost (1) $ 1,480 Finance lease cost: Amortization of right-of-use assets 110 Interest on lease liabilities (2) 68 Total finance lease cost 178 Total Lease Cost (3) $ 1,658 (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 [Table Text Block] | Supplemental cash flow information and non-cash activity related to leases was as follows for the period indicated: (In thousands) For the Year Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,394 Operating cash flows from finance leases 68 Financing cash flows from finance leases 106 Right-of-use assets obtained in exchange for new lease obligations: Operating leases (1) $ 14,030 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 as of the date indicated: December 31, 2019 Weighted average remaining lease term (years): Operating leases 15.2 years Finance leases 22.4 years Weighted average discount rate: Operating leases 3.39 % Finance leases 4.00 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following summarizes the remaining scheduled future minimum lease payments for operating and finance leases as of December 31, 2019: (In thousands) Operating Leases Finance Leases 2020 $ 1,452 $ 174 2021 1,374 174 2022 1,363 174 2023 1,239 174 2024 1,200 174 Thereafter 10,342 1,922 Total minimum lease payments 16,970 2,792 Less: amount representing interest (1) 3,911 1,127 Present value of net minimum lease payments (2) $ 13,059 $ 1,665 (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. |
Finance Lease, Liability, Maturity [Table Text Block] | The following summarizes the remaining scheduled future minimum lease payments for operating and finance leases as of December 31, 2019: (In thousands) Operating Leases Finance Leases 2020 $ 1,452 $ 174 2021 1,374 174 2022 1,363 174 2023 1,239 174 2024 1,200 174 Thereafter 10,342 1,922 Total minimum lease payments 16,970 2,792 Less: amount representing interest (1) 3,911 1,127 Present value of net minimum lease payments (2) $ 13,059 $ 1,665 (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. |
Mortgage Banking (Tables)
Mortgage Banking (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Transfers and Servicing [Abstract] | |
Schedule of Mortgage Servicing Rights Capitalized and Amortized | The following summarizes servicing assets capitalized and amortized, along with the activity in the related valuation allowance as of and for the periods indicated: As Of and For The Year Ended December 31, (In thousands) 2019 2018 2017 Servicing Assets: Balance at beginning of year $ 831 $ 1,025 $ 1,210 Capitalized servicing right fees upon sale (1) 263 — 22 Amortization charged against mortgage servicing fee income (2) (216 ) (200 ) (430 ) Valuation adjustment (1 ) 6 223 Balance at end of year $ 877 $ 831 $ 1,025 Valuation Allowance: Balance at beginning of year $ (1 ) $ (7 ) $ (230 ) (Increase) decrease in impairment reserve (1 ) 6 223 Balance at end of year $ (2 ) $ (1 ) $ (7 ) Fair value, beginning of year $ 1,677 $ 1,766 $ 1,701 Fair value, end of year $ 1,496 $ 1,677 $ 1,766 (1) Associated income was reported within mortgage banking income, net on the consolidated statements of income. (2) Associated amortization expense was reported within mortgage banking income, net on the consolidated statements of income. |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Schedule Of Deposit Maturities | The following is a summary of scheduled maturities of CDs, including retail and brokered deposits, as of the dates indicated: December 31, (In thousands) 2019 2018 1 year or less $ 474,530 $ 461,207 Over 1 year to 2 years 61,100 123,397 Over 2 years to 3 years 21,682 35,235 Over 3 years to 4 years 14,211 20,045 Over 4 years to 5 years 18,993 15,368 Over 5 years 5,033 6,029 Total $ 595,549 $ 661,281 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Short term and Long term Borrowings and Subordinated Debentures | The following table summarizes the Company's short-term borrowings, long-term borrowings and subordinated debentures as presented on the consolidated statements of condition for the dates indicated: December 31, 2019 Contractual Maturity December 31, 2018 (Dollars in thousands) Outstanding Balance Weighted Average Contract Rate 2020 2021 2022 2023 2024 Thereafter Outstanding Balance Weighted Average Contract Rate Short-Term Borrowings: FHLBB borrowings $ 25,000 $ 25,000 $ — $ — $ — $ — $ — $ 25,000 Customer repurchase agreements 237,984 237,984 — — — — — 245,868 FHLBB and correspondent bank overnight borrowings 5,825 5,825 — — — — — — Total short-term borrowings $ 268,809 1.28 % $ 268,809 $ — $ — $ — $ — $ — $ 270,868 1.43 % Long-Term Borrowings: FHLBB borrowings $ 10,000 1.87 % $ 10,000 $ — $ — $ — $ — $ — $ 10,000 1.87 % Capital lease obligation (1) — — — — — — — — 1,580 4.20 % Total long-term borrowings $ 10,000 1.87 % $ 10,000 $ — $ — $ — $ — $ — $ 11,580 2.19 % Subordinated Debentures: Subordinated debentures (2) $ 14,749 5.50 % $ — $ — $ — $ — $ — $ 14,749 $ 14,634 5.50 % CCTA 36,083 5.50 % — — — — — 36,083 36,083 5.38 % UBCT 8,248 4.45 % — — — — — 8,248 8,350 4.14 % Total subordinated debentures $ 59,080 5.35 % $ — $ — $ — $ — $ — $ 59,080 $ 59,067 5.23 % (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 1 and 6 for further information. (2) The outstanding balance of subordinated debentures was presented net of debt issuance costs of $251,000 and $366,000 at December 31, 2019 and 2018, respectively. |
Schedule of Federal Home Loan Bank Advances | The terms of the Company's outstanding FHLBB borrowings, including overnight funding, were as follows as of the dates indicated: December 31, (Dollars in thousands) 2019 2018 Stated Maturity Outstanding Balance Weighted Average Contractual Rate Outstanding Balance Weighted Average Contractual Rate January 2019 $ — — $ 25,000 2.71 % January 2020 30,825 1.79 % — — April 2020 10,000 1.87 % 10,000 1.87 % Total $ 40,825 $ 35,000 The Company's outstanding FHLBB borrowings at December 31, 2019 and 2018 did not contain any call options. |
Repurchase Agreements (Tables)
Repurchase Agreements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Underlying Assets of Repurchase Agreements when Amount of Repurchase Agreements Exceeds 10 Percent of Assets | The tables below sets forth information regarding the Company’s repurchase agreements accounted for as secured borrowings allocated by source of collateral as of the dates indicated: December 31, (In thousands) 2019 2018 Customer Repurchase Agreements (1)(2) : Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises $ 118,969 $ 118,823 Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 117,654 125,590 Obligations of states and political subdivisions 1,361 1,455 Total $ 237,984 $ 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 and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Contractual and Notional Amounts of Financial Instruments | The following is a summary of the Company's contractual off-balance sheet commitments for the dates indicated: December 31, (In thousands) 2019 2018 Commitments to extend credit $ 734,649 $ 654,575 Standby letters of credit 5,211 3,063 Total $ 739,860 $ 657,638 |
Derivatives and Hedging Deriv_2
Derivatives and Hedging Derivatives and Hedging (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments [Table Text Block] | The details of the FHLBB advance interest rate swaps for the dates indicated were as follows: December 31, (Dollars in thousands) 2019 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 The details of the junior subordinated debt interest rate swaps for the dates indicated were as follows: December 31, (Dollars in thousands) 2019 2018 Trade Date Maturity Date Variable Index Received Fixed Rate Paid 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 $ (299 ) $ 10,000 $ (272 ) 7/8/2009 6/30/2029 3-Month USD LIBOR 5.84% Accrued interest and other liabilities 10,000 (2,318 ) 10,000 (1,655 ) 5/6/2010 6/30/2030 3-Month USD LIBOR 5.71% Accrued interest and other liabilities 10,000 (2,384 ) 10,000 (1,636 ) 3/14/2011 3/30/2031 3-Month USD LIBOR 4.35% Accrued interest and other liabilities 5,000 (1,279 ) 5,000 (877 ) 5/4/2011 7/7/2031 3-Month USD LIBOR 4.14% Accrued interest and other liabilities 8,000 (1,907 ) 8,000 (1,242 ) $ 43,000 $ (8,187 ) $ 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: December 31, 2019 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 $ 27,087 $ 480 $ 8,239 $ 95 Fixed-rate mortgage interest rate locks Accrued interest and other liabilities 2,519 (18 ) 3,838 (28 ) Total $ 29,606 $ 462 $ 12,077 $ 67 The following table presents the total positions, notional and fair value of the Company's customer loans swaps with each party for the dates indicated: December 31, 2019 2018 (In thousands, except number of positions) 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 10 $ 45,243 $ (514 ) 57 $ 297,624 $ (7,841 ) Receive fixed, pay variable Other assets 75 366,351 17,756 25 118,891 3,467 Pay fixed, receive variable (Accrued interest and other liabilities)/other assets 85 411,594 (17,242 ) 82 416,515 4,374 Total 170 $ 823,188 $ — 164 $ 833,030 $ — The Company's forward delivery commitments on loans held for sale for the dates indicated were as follows: December 31, 2019 2018 (In thousands) Presentation on Consolidated Statements of Condition Notional Amount Fair Value Notional Amount Fair Value Forward delivery commitments ("best effort") Other assets $ 10,846 $ 312 $ 2,593 $ 32 Forward delivery commitments ("best effort") Accrued interest and other liabilities 1,069 (15 ) 1,722 (17 ) Total $ 11,915 $ 297 $ 4,315 $ 15 The details of the interest rate swap for the date indicated were as follows: (Dollars in thousands) December 31, 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 $ 483 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | 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 Year Ended (In thousands) 2019 2018 2017 Derivatives designated as cash flow hedges Effective portion of unrealized losses recognized within AOCI during the period, net of tax $ (2,334 ) $ 837 $ (248 ) Net reclassification adjustment for effective portion of cash flow hedges included in interest expense, gross $ 921 $ 831 $ 1,592 |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Offsetting [Abstract] | |
Offsetting Assets | The following table presents the Company's derivative positions and repurchase agreements, and the potential effect of netting arrangements on its consolidated statements of condition, 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 December 31, 2019 Derivative assets: Customer loan swaps - commercial customer (2) $ 17,756 $ — $ 17,756 $ — $ — $ 17,756 Interest rate swap on loans 483 — 483 — (483 ) — Total $ 18,239 $ — $ 18,239 $ — $ (483 ) $ 17,756 Derivative liabilities: Customer loan swaps - dealer bank $ 17,242 $ — 17,242 $ — $ 17,242 $ — Junior subordinated debt interest rate swaps 8,187 — 8,187 — 8,187 — Customer loan swaps - commercial customer (2) 514 — 514 — — 514 Total $ 25,943 $ — $ 25,943 $ — $ 25,429 $ 514 Customer repurchase agreements $ 237,984 $ — $ 237,984 $ 237,984 $ — $ — December 31, 2018 Derivative assets: Customer loan swaps - dealer bank $ 4,374 $ — $ 4,374 $ — $ (4,374 ) $ — Customer loan swaps - commercial customer (2) 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 (2) 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. (2) The Company manages its net exposure on its commercial customer loan swaps by obtaining collateral as part of the normal loan policy and underwriting practices. |
Offsetting Liabilities | The following table presents the Company's derivative positions and repurchase agreements, and the potential effect of netting arrangements on its consolidated statements of condition, 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 December 31, 2019 Derivative assets: Customer loan swaps - commercial customer (2) $ 17,756 $ — $ 17,756 $ — $ — $ 17,756 Interest rate swap on loans 483 — 483 — (483 ) — Total $ 18,239 $ — $ 18,239 $ — $ (483 ) $ 17,756 Derivative liabilities: Customer loan swaps - dealer bank $ 17,242 $ — 17,242 $ — $ 17,242 $ — Junior subordinated debt interest rate swaps 8,187 — 8,187 — 8,187 — Customer loan swaps - commercial customer (2) 514 — 514 — — 514 Total $ 25,943 $ — $ 25,943 $ — $ 25,429 $ 514 Customer repurchase agreements $ 237,984 $ — $ 237,984 $ 237,984 $ — $ — December 31, 2018 Derivative assets: Customer loan swaps - dealer bank $ 4,374 $ — $ 4,374 $ — $ (4,374 ) $ — Customer loan swaps - commercial customer (2) 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 (2) 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. (2) The Company manages its net exposure on its commercial customer loan swaps by obtaining collateral as part of the normal loan policy and underwriting practices. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements | The following table presents the Company and Bank's regulatory capital ratios at the periods indicated: 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 December 31, Minimum Regulatory Capital Required For Capital Adequacy plus Capital Conservation Buffer Minimum Regulatory Provision To Be "Well Capitalized" Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Camden National Corporation: Total risk-based capital ratio $ 455,702 14.44 % 10.50 % N/A $ 434,331 14.36 % 9.875 % N/A Tier 1 risk-based capital ratio 415,511 13.16 % 8.50 % N/A 394,597 13.04 % 7.875 % N/A Common equity Tier 1 risk-based capital ratio 372,511 11.80 % 7.00 % N/A 351,597 11.62 % 6.375 % N/A Tier 1 leverage capital ratio 415,511 9.55 % 4.00 % N/A 394,597 9.53 % 4.00 % N/A Camden National Bank: Total risk-based capital ratio $ 423,540 13.45 % 10.50 % 10.00 % $ 398,773 13.18 % 9.875 % 10.00 % Tier 1 risk-based capital ratio 398,349 12.65 % 8.50 % 8.00 % 374,039 12.36 % 7.875 % 8.00 % Common equity Tier 1 risk-based capital ratio 398,349 12.65 % 7.00 % 6.50 % 374,039 12.36 % 6.375 % 6.50 % Tier 1 leverage capital ratio 398,349 9.19 % 4.00 % 5.00 % 374,039 9.06 % 4.00 % 5.00 % |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Comprehensive Income (Loss) | The following tables present a reconciliation of the changes in the components of other comprehensive income and loss for the periods indicated, including the amount of tax (expense) benefit allocated to each component: For The Year Ended December 31, 2019 (In thousands) Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount AFS Securities: Unrealized holdings gains $ 26,743 $ (5,750 ) $ 20,993 Less: reclassification adjustment for realized losses (1) (105 ) 22 (83 ) Net unrealized gains 26,848 (5,772 ) 21,076 Cash Flow Hedges: Net decrease in fair value (2,973 ) 639 (2,334 ) Less: effective portion reclassified into interest expense (2) (921 ) 198 (723 ) Net decrease in fair value (2,052 ) 441 (1,611 ) Postretirement Plans: Net actuarial loss (1,918 ) 412 (1,506 ) Less: Amortization of net actuarial losses (3) (271 ) 59 (212 ) Less: Amortization of net prior service credits (3) 24 (5 ) 19 Net loss on postretirement plans (1,671 ) 358 (1,313 ) Other comprehensive income $ 23,125 $ (4,973 ) $ 18,152 For The Year Ended December 31, 2018 (In thousands) Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount AFS Securities: Unrealized holdings losses $ (10,846 ) $ 2,332 $ (8,514 ) Less: reclassification adjustment for realized losses (1) (663 ) 142 (521 ) Net unrealized losses (10,183 ) 2,190 (7,993 ) Cash Flow Hedges: Net increase in fair value 1,066 (229 ) 837 Less: effective portion reclassified into interest expense (2) (831 ) 179 (652 ) Net increase in fair value 1,897 (408 ) 1,489 Postretirement Plans: Net actuarial gain 1,743 (375 ) 1,368 Less: Amortization of net actuarial losses (3) (613 ) 131 (482 ) Less: Amortization of net prior service credits (3) 24 (5 ) 19 Net loss on postretirement plans 2,332 (501 ) 1,831 Other comprehensive loss $ (5,954 ) $ 1,281 $ (4,673 ) For The Year Ended December 31, 2017 (In thousands) Pre-Tax Amount Tax (Expense) Benefit After-Tax Amount AFS Securities: Unrealized holdings losses $ (2,905 ) $ 1,017 $ (1,888 ) Less: reclassification adjustment for realized gains (1) 855 (299 ) 556 Net unrealized losses (3,760 ) 1,316 (2,444 ) Cash Flow Hedges: Net decrease in fair value (382 ) 134 (248 ) Less: effective portion reclassified into interest expense (2) (1,592 ) 557 (1,035 ) Net increase in fair value 1,210 (423 ) 787 Postretirement Plans: Net actuarial loss (2,065 ) 723 (1,342 ) Less: amortization of net actuarial losses (3) (286 ) 100 (186 ) Less: amortization of net prior service credits (3) 24 (8 ) 16 Net loss on postretirement plans (1,803 ) 631 (1,172 ) Other comprehensive loss $ (4,353 ) $ 1,524 $ (2,829 ) (1) Reclassified into net (loss) gain on sale of securities on the consolidated statements of income. (2) Reclassified into interest on borrowings and subordinated debentures on the consolidated statements of income. (3) Reclassified into compensation and related benefits and other expense on the consolidated statements of income. Refer to Note 18 of the consolidated financial statements for further details. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in each component of AOCI for the periods indicated: (In thousands) Net Unrealized Gains (Losses) on AFS Securities (1) Net Unrealized Losses on Cash Flow Hedges (1) Defined Benefit Postretirement Plans (1) AOCI (1) Balance at December 31, 2016 $ (6,085 ) $ (5,694 ) $ (2,130 ) $ (13,909 ) Other comprehensive loss before reclassifications (1,888 ) (248 ) (1,342 ) (3,478 ) Less: Amounts reclassified from AOCI 556 (1,035 ) (170 ) (649 ) Other comprehensive loss (income) (2,444 ) 787 (1,172 ) (2,829 ) Less: Amounts reclassified from AOCI related to adoption of ASU 2018-02 (1,771 ) (1,019 ) (686 ) (3,476 ) Balance at December 31, 2017 (10,300 ) (5,926 ) (3,988 ) (20,214 ) Other comprehensive (loss) income before reclassifications (8,514 ) 837 1,368 (6,309 ) Less: Amounts reclassified from AOCI (521 ) (652 ) (463 ) (1,636 ) Other comprehensive loss (income) (7,993 ) 1,489 1,831 (4,673 ) Net amount reclassified to AOCI related to adoption of ASU 2016-01 and ASU 2017-12 467 — — 467 Balance at December 31, 2018 (17,826 ) (4,437 ) (2,157 ) (24,420 ) Other comprehensive income (loss) before reclassifications 20,993 (2,334 ) (1,506 ) 17,153 Less: Amounts reclassified from AOCI (83 ) (723 ) (193 ) (999 ) Other comprehensive income (loss) 21,076 (1,611 ) (1,313 ) 18,152 Balance at December 31, 2019 $ 3,250 $ (6,048 ) $ (3,470 ) $ (6,268 ) (1) All amounts are net of tax. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the revenue streams with the scope of ASC 606 for the periods indicated: For The Year ended December 31, (In thousands) Income Statement Line Item 2019 2018 Debit card interchange income Debit card income $ 9,701 $ 9,067 Services charges on deposit accounts Service charges on deposit accounts 8,393 8,253 Fiduciary services income Income from fiduciary services 5,901 5,376 Investment program income Brokerage and insurance commissions 2,625 2,615 Other non-interest income Other income 1,710 1,508 Total non-interest income within the scope of ASC 606 28,330 26,819 Total non-interest income not in scope of ASC 606 13,783 11,357 Total non-interest income $ 42,113 $ 38,176 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Option Pricing Assumptions and Estimated Fair Value | The following table presents the option pricing assumptions and the estimated fair value of the options using these assumptions for grants made for the year ended: December 31, 2019 2018 2017 Weighted-average dividend yield N/A 2.36 % N/A Weighted-average risk-free interest rate N/A 2.38 % N/A Weighted-average expected volatility N/A 22.80 % N/A Weighted-average expected life (in years) N/A 5.3 N/A Weighted-average fair value of options granted N/A $ 7.78 N/A |
Schedule of Stock Option Activity | Stock option activity for the year ended December 31, 2019 was as follows: (Dollars in thousands, except per option data) Number of Options Weighted-Average Exercise Price per Option Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Options outstanding at January 1, 2019 27,352 $ 22.53 Granted — — Exercised (13,745 ) 21.39 Forfeited — — Expired — — Options outstanding at December 31, 2019 13,607 $ 23.69 3.3 $ 304 Options exercisable at December 31, 2019 11,757 $ 22.21 2.8 $ 280 A summary of the status of the Company’s nonvested stock options as of December 31, 2019 and changes during the year then ended was as follows: Options Weighted-Average Grant Date Fair Value per Option Nonvested at January 1, 2019 3,100 $ 6.32 Granted — — Vested (1,250 ) 6.09 Forfeited — — Nonvested at December 31, 2019 1,850 $ 6.48 |
Schedule of Compensation Expense | Compensation expense and the related tax benefit recognized in connection with the DCRP was as follows for the periods presented: For The Year Ended (In thousands) 2019 2018 2017 Compensation expense $ 110 $ 106 $ 97 Related income tax benefit 24 23 21 Fair value of grants vested 102 105 90 Compensation expense and the related income tax benefit recognized in connection with the restricted stock units was as follows for the periods indicated: For The Year Ended (In thousands) 2019 2018 2017 Compensation expense $ 389 $ 263 $ 124 Income tax benefit 84 57 27 Fair value of grants vested 302 149 — Compensation expense and the related income tax benefit recognized in connection with the MSPP awards was as follows for the periods indicated: For The Year Ended (In thousands) 2019 2018 2017 Compensation expense $ 95 $ 104 $ 97 Income tax benefit 20 22 21 Fair value of grants vested 75 130 91 Compensation expense and the related tax benefit for the LTIP's performance-based awards was as follows for the periods indicated: For The Year Ended (In thousands) 2019 2018 2017 Compensation expense $ 532 $ 291 $ 370 Related income tax benefit 114 63 80 Fair value of grants vested 344 284 843 Compensation expense and the related income tax benefit recognized in connection with the restricted stock awards was as follows for the periods indicated: For The Year Ended (In thousands) 2019 2018 2017 Compensation expense $ 751 $ 916 $ 762 Income tax benefit 161 197 164 Fair value of grants vested 780 931 702 |
Summary of Nonvested Share Awards Activity | Restricted stock award activity for the year ended December 31, 2019 is as follows: (Dollars in thousands, except per share data) Number of Shares Weighted-Average Grant Date Fair Value per Share Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Unrecognized Compensation Nonvested at January 1, 2019 22,781 $ 38.21 Granted 16,347 44.30 Vested (19,420 ) 40.16 Forfeited (421 ) 27.20 Nonvested at December 31, 2019 19,287 $ 41.66 1.6 $ 888 $ 492 DCRP award activity for the year ended December 31, 2019 was as follows: (Dollars in thousands, except per award data) Number of Deferred Stock Awards Weighted-Average Grant Date Fair Value per Award Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Unrecognized Compensation Nonvested at January 1, 2019 9,970 $ 28.16 Granted 3,542 43.26 Vested (2,861 ) 35.74 Forfeited — — Nonvested at December 31, 2019 10,651 $ 31.14 10.3 $ 491 $ 255 LTIP performance-based award activity for the year ended December 31, 2019 was as follows: (Dollars in thousands, except per share data) Number of Shares Weighted-Average Grant Date Fair Value per Share Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Unrecognized Compensation Nonvested at January 1, 2019 26,377 $ 44.28 Granted 14,186 43.98 Vested (7,811 ) 43.99 Forfeited (4,987 ) 43.99 Nonvested at December 31, 2019 27,765 $ 44.26 1.6 $ 1,279 $ 455 MSPP award activity for the year ended December 31, 2019 was as follows: (Dollars in thousands, except per share data) Number of Shares Weighted-Average Grant Date Fair Value per Share Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Unrecognized Compensation Nonvested at January 1, 2019 13,013 $ 14.35 Granted 7,741 11.01 Vested (5,516 ) 13.65 Forfeited (223 ) 14.23 Nonvested at December 31, 2019 15,015 $ 12.89 0.7 $ 219 $ 57 Restricted stock unit activity for the year ended December 31, 2019 was as follows: (Dollars in thousands, except per unit data) Number of Units Weighted-Average Grant Date Fair Value per Unit Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Unrecognized Compensation Nonvested at January 1, 2019 30,225 $ 44.23 Granted 15,138 43.40 Vested (6,854 ) 44.12 Forfeited (2,457 ) 43.99 Nonvested at December 31, 2019 36,052 $ 43.92 3.3 $ 1,661 $ 1,258 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Benefit Obligation and Plan Assets | The following table summarizes changes in the benefit obligation and plan assets for each postretirement benefit plan as of the dates indicated: SERP Other Postretirement Benefits December 31, (In thousands) 2019 2018 2019 2018 Benefit obligations: Beginning of year $ 12,717 $ 13,790 $ 3,616 $ 3,791 Service cost 395 446 48 46 Interest cost 523 488 148 132 Actuarial loss (gain) 1,524 (1,534 ) 394 (209 ) Benefits paid (477 ) (473 ) (157 ) (144 ) End of year 14,682 12,717 4,049 3,616 Fair value of plan assets: Beginning of year — — — — Employer contributions 477 473 157 144 Benefits paid (477 ) (473 ) (157 ) (144 ) End of year — — — — Unfunded status at end of year (1) $ 14,682 $ 12,717 $ 4,049 $ 3,616 Amounts recognized in AOCI, net of tax: Net actuarial loss $ 2,864 $ 1,859 $ 738 $ 449 Prior service credit — — (132 ) (151 ) Total $ 2,864 $ 1,859 $ 606 $ 298 (1) Presented within other liabilities on the consolidated statements of condition. |
Schedule of Net Period Benefit Cost and Other Amounts Recognized in Other Comprehensive Income | The components of net periodic benefit cost and other amounts recognized in OCI, before taxes, were as follows for the year ended December 31: SERP Other Postretirement Benefits (In thousands) 2019 2018 2017 2019 2018 2017 Net periodic benefit cost: Service cost (1) $ 395 $ 446 $ 335 $ 48 $ 46 $ 53 Interest cost (2) 523 488 452 148 132 144 Recognized net actuarial loss (2) 240 561 246 31 52 40 Amortization of prior service credit (2) — — — (24 ) (24 ) (24 ) Net periodic benefit cost 1,158 1,495 1,033 203 206 213 Changes in funded status recognized in OCI, before taxes: Net actuarial loss (gain) arising during period 1,524 (1,534 ) 1,955 394 (209 ) 110 Reclassifications to net periodic benefit cost: Amortization of net unrecognized actuarial loss (240 ) (561 ) (246 ) (31 ) (52 ) (40 ) Amortization of prior service credit — — — 24 24 24 Total recognized in OCI, before taxes 1,284 (2,095 ) 1,709 387 (237 ) 94 Total recognized in net periodic benefit cost and OCI, before taxes $ 2,442 $ (600 ) $ 2,742 $ 590 $ (31 ) $ 307 |
Schedule of Assumptions Used in Determining Benefit Obligations and Net Period Benefit Costs | The following assumptions were used in determining benefit obligations and net period benefit costs: SERP Other Postretirement Benefits 2019 2018 2017 2019 2018 2017 Weighted-average assumptions as of end of year: Discount rate for benefit obligation 3.2 % 4.2 % 3.6 % 3.2 % 4.2 % 3.6 % Discount rate for net periodic benefit cost 4.2 % 3.6 % 4.0 % 4.2 % 3.6 % 4.0 % Rate of compensation increase for benefit obligation 3.0 % 3.0 % 5.0 % N/A N/A N/A Rate of compensation increase for net periodic benefit cost 3.0 % 3.0 % 5.0 % N/A N/A N/A Health care cost trend rate assumed for future years N/A N/A N/A 4.5% - 7.0% 5.0% - 6.0% 5.0% - 6.0% |
Schedule of Estimated Future Benefit Payments | The expected benefit payments for the next ten years are presented in the following table: (In thousands) SERP Other Postretirement Benefits 2020 $ 486 $ 268 2021 536 265 2022 566 233 2023 526 219 2024 436 231 Next 5 years 2,141 1,084 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | The current and deferred components of income tax expense on the consolidated statements of income were as follows: For The Year Ended December 31, (In thousands) 2019 2018 2017 Current: Federal $ 11,876 $ 14,102 $ 14,529 State 1,241 1,206 1,289 13,117 15,308 15,818 Deferred: Federal 1,230 (2,541 ) 4,117 State 29 (61 ) (320 ) Change in federal corporate income tax rate (1) — — 14,263 1,259 (2,602 ) 18,060 Income tax expense $ 14,376 $ 12,706 $ 33,878 |
Reconciliation of Expected Income Tax Benefit Computed Using Federal Statutory Income Tax Rate | The income tax expense differs from the amount computed by applying the statutory federal income tax rate as a result of the following: For The Year Ended December 31, (Dollars in thousands) 2019 2018 2017 Computed tax expense (1) $ 15,032 $ 13,813 $ 21,824 Increase (reduction) in income taxes resulting from: State taxes, net of federal benefit 1,003 905 630 Tax exempt income (738 ) (741 ) (1,291 ) Income from life insurance (509 ) (510 ) (829 ) Low income housing credits (430 ) (465 ) (366 ) Share-based awards (60 ) (250 ) (390 ) Change in federal corporate income tax rate (1) — — 14,263 Other 78 (46 ) 37 Income tax expense $ 14,376 $ 12,706 $ 33,878 Income before income taxes $ 71,579 $ 65,777 $ 62,354 Effective tax rate 20.1 % 19.3 % 54.3 % (1) On December 22, 2017, the Tax Act was enacted, reducing the U.S. federal corporate income tax rate from 35.0% to 21.0%. The Company recognized the effect of the tax law changes in the period of enactment, which resulted in a reduction to net deferred tax assets and a corresponding charge to income tax expense of $14.3 million . |
Schedule of Deferred Tax Assets and Deferred Tax Liabilities | Temporary differences between the financial statements carrying amounts and the tax bases of assets and liabilities gave rise to the following deferred tax assets and liabilities as of the dates indicated: December 31, 2019 2018 (In thousands) Asset Liability Asset Liability Net operating loss and tax credit carryforward $ 10,421 $ — $ 11,250 $ — Allowance for loan losses 5,416 — 5,318 — Pension and other benefits 4,492 — 3,881 — Net unrealized losses on derivative instruments 1,656 — 1,215 — Deferred compensation and benefits 919 — 927 — Depreciation — (3,053 ) — (2,913 ) Deferred loan origination fees — (2,119 ) — (1,860 ) Net unrealized (gains) losses on AFS debt securities (890 ) 4,882 — Other (19 ) 353 — Gross deferred tax assets (liabilities) $ 22,904 $ (6,081 ) $ 27,826 $ (4,773 ) Valuation allowance on deferred tax assets — — Net deferred tax assets $ 16,823 $ 23,053 |
EPS (Tables)
EPS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following is an analysis of the calculation of basic and diluted EPS, reflecting the application of the two-class method, for the periods indicated: For The Year Ended December 31, (In thousands, except number of shares and per share data) 2019 2018 2017 Net income $ 57,203 $ 53,071 $ 28,476 Dividends and undistributed earnings allocated to participating securities (1) (120 ) (148 ) (118 ) Net income available to common shareholders $ 57,083 $ 52,923 $ 28,358 Weighted-average common shares outstanding for basic EPS 15,407,289 15,571,387 15,509,665 Dilutive effect of stock-based awards (2) 45,733 54,916 78,682 Weighted-average common and potential common shares for diluted EPS 15,453,022 15,626,303 15,588,347 Earnings per common share: Basic EPS $ 3.70 $ 3.40 $ 1.83 Diluted EPS $ 3.69 $ 3.39 $ 1.82 (1) Represents dividends paid and undistributed earnings allocated to nonvested stock-based awards that contain non-forfeitable rights to dividends. (2) Represents the effect of the assumed exercise of stock options, vesting of restricted shares and restricted stock units, and issuance of LTIP awards that have met the performance criteria, utilizing the treasury stock method. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 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) December 31, 2019 Financial assets: Loans held for sale $ 11,854 $ — $ 11,854 $ — AFS investments: Obligations of states and political subdivisions 118,083 — 118,083 — Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 463,386 — 463,386 — Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 325,905 — 325,905 — Subordinated corporate bonds 10,744 — 10,744 — Equity securities - bank stock 1,674 — 1,674 — Customer loan swaps 17,756 — 17,756 — Interest rate swap on loans 483 — 483 — Fixed-rate mortgage interest rate lock commitments 480 — 480 — Forward delivery commitments 312 — 312 — Financial liabilities: Junior subordinated debt interest rate swaps $ 8,187 $ — $ 8,187 $ — Customer loan swaps 17,756 — 17,756 — Fixed-rate mortgage interest rate lock commitments 18 — 18 — Forward delivery commitments 15 — 15 — 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) December 31, 2019 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) December 31, 2019 OREO $ 94 Market approach appraisal of collateral Management adjustment of appraisal 18% (18%) Estimated selling costs 13% (13%) December 31, 2018 Collateral-dependent impaired loans: Partially charged-off $ 50 Market approach appraisal of collateral Management adjustment of appraisal 0% (0%) Estimated selling costs 10% (10%) Specifically reserved 472 Market approach appraisal of collateral Management adjustment of appraisal 0% (0%) Estimated selling costs 10% (10%) OREO 130 Market approach appraisal of collateral Management adjustment of appraisal 19% (19%) Estimated selling costs 10% (10%) |
Carrying Amounts and Estimated Fair Value for Financial Instrument Assets and Liabilities | The estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below as of the 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) December 31, 2019 Financial assets: HTM securities $ 1,302 $ 1,359 $ — $ 1,359 $ — Residential real estate loans (1) 1,064,532 1,066,544 — — 1,066,544 Commercial real estate loans (1) 1,230,983 1,196,297 — — 1,196,297 Commercial loans (1)(2) 438,716 431,892 — — 431,892 Home equity loans (1) 310,356 293,565 — — 293,565 Consumer loans (1) 25,265 23,355 — — 23,355 Servicing assets 877 1,496 — — 1,496 Financial liabilities: Time deposits $ 595,549 $ 594,881 $ — $ 594,881 $ — Short-term borrowings 268,809 268,631 — 268,631 — Long-term borrowings 10,000 10,002 — 10,002 — Subordinated debentures 59,080 50,171 — 50,171 — 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. |
Parent Company Financial Stat_2
Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Statements of Condition | Following are the condensed statements of condition, income and cash flows for the Company's parent company: STATEMENTS OF CONDITION December 31, (In thousands) 2019 2018 ASSETS Cash $ 30,561 $ 32,367 Investment in subsidiary 509,149 464,885 Receivable from subsidiary 150 48 Other assets 19,290 15,458 Total assets $ 559,150 $ 512,758 LIABILITIES AND SHAREHOLDERS’ EQUITY Subordinated debentures $ 59,080 $ 59,067 Due to subsidiary 33 40 Other liabilities 26,622 17,826 Shareholders’ equity 473,415 435,825 Total liabilities and shareholders’ equity $ 559,150 $ 512,758 |
Condensed Statements of Income | STATEMENTS OF INCOME For The Year Ended December 31, (In thousands) 2019 2018 2017 Operating Income Dividend income from subsidiary $ 36,900 $ 28,100 $ 16,800 Other income 1,128 283 145 Total operating income 38,028 28,383 16,945 Operating Expenses Interest on borrowings 3,267 3,415 3,408 Fees to Bank 160 160 160 Other operating expenses 641 569 592 Total operating expenses 4,068 4,144 4,160 Income before equity in undistributed income of subsidiaries and income taxes 33,960 24,239 12,785 Equity in undistributed income of subsidiaries 22,580 27,971 17,405 Income before income taxes 56,540 52,210 30,190 Income tax benefit (expense) 663 861 (1,714 ) Net Income $ 57,203 $ 53,071 $ 28,476 |
Condensed Statements of Cash Flows | STATEMENTS OF CASH FLOWS For The Year Ended December 31, (In thousands) 2019 2018 2017 Operating Activities Net income $ 57,203 $ 53,071 $ 28,476 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of subsidiaries (22,579 ) (27,971 ) (17,405 ) Increase in other assets (2,935 ) (1,772 ) (1,962 ) (Decrease) increase in due to subsidiaries (109 ) 82 (20 ) Increase (decrease) in other liabilities 4,298 (4,763 ) 3,721 Net cash provided by operating activities 35,878 18,647 12,810 Investing Activities Proceeds from sale of investments — 214 110 Net cash provided by investing activities — 214 110 Financing Activities Net proceeds from issuance of common stock 1,683 1,338 863 Common stock repurchases (20,795 ) (27 ) — Cash dividends paid on common stock (18,572 ) (17,170 ) (14,323 ) Net cash used in financing activities (37,684 ) (15,859 ) (13,460 ) Net (decrease) increase in cash, cash equivalents and restricted cash (1,806 ) 3,002 (540 ) Cash, cash equivalents and restricted cash at beginning of year 32,367 29,365 29,905 Cash, cash equivalents and restricted cash at end of year $ 30,561 $ 32,367 $ 29,365 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Results of Operations | The following table presents a summary of the quarterly results of operations for the periods indicated: December 31, 2019 2018 (In thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $ 42,009 $ 42,437 $ 42,520 $ 41,552 $ 35,278 $ 37,089 $ 38,557 $ 40,453 Interest expense 10,114 10,864 10,597 9,313 6,376 7,608 8,134 8,866 Net interest income 31,895 31,573 31,923 32,239 28,902 29,481 30,423 31,587 Provision (credit) for credit losses 744 1,173 730 214 (497 ) 983 354 7 Non-interest income 9,389 10,037 10,739 11,948 8,804 9,501 10,392 9,479 Non-interest expense 22,783 23,958 23,748 24,814 22,304 22,895 23,166 23,580 Income before income tax expense 17,757 16,479 18,184 19,159 15,899 15,104 17,295 17,479 Income tax expense 3,484 3,275 3,696 3,921 3,079 2,887 3,238 3,502 Net income $ 14,273 $ 13,204 $ 14,488 $ 15,238 $ 12,820 $ 12,217 $ 14,057 $ 13,977 Per common share: Basic $ 0.91 $ 0.85 $ 0.94 $ 1.00 $ 0.82 $ 0.78 $ 0.90 $ 0.90 Diluted $ 0.91 $ 0.85 $ 0.94 $ 0.99 $ 0.82 $ 0.78 $ 0.90 $ 0.89 |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Jan. 01, 2018 | Dec. 31, 2016 | ||
Accounting Policy [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 100.00% | ||||||
Financing Receivable, Individually Evaluated for Impairment | $ 4,478,000 | $ 6,926,000 | $ 13,590,000 | ||||
Goodwill impairment | $ 0 | 0 | 0 | ||||
BOLI single carrier percentage of Tier I capital | 15.00% | ||||||
BOLI CSV percentage of Tier I Capital | 25.00% | ||||||
Debt Securities, Held-to-maturity, Transfer, Amount | 92,000,000 | ||||||
Number of Reporting Unit Levels | 1 | ||||||
Operating Lease, Right-of-Use Asset | $ 13,002,000 | ||||||
Operating lease liabilities | [1] | 13,059,000 | |||||
Financing Receivable, Allowance for Credit Losses | 25,171,000 | $ 24,712,000 | $ 24,171,000 | $ 23,116,000 | |||
Minimum [Member] | |||||||
Accounting Policy [Line Items] | |||||||
Financing Receivable, Individually Evaluated for Impairment | $ 500,000 | ||||||
ASU 2016-02 | |||||||
Accounting Policy [Line Items] | |||||||
Cumulative-effect adjustment | $ (254,000) | ||||||
Operating Lease, Right-of-Use Asset | 12,100,000 | ||||||
Operating lease liabilities | 12,300,000 | ||||||
Retained Earnings | ASU 2016-01 | |||||||
Accounting Policy [Line Items] | |||||||
Cumulative-effect adjustment | $ (198,000) | ||||||
Retained Earnings | ASU 2016-02 | |||||||
Accounting Policy [Line Items] | |||||||
Cumulative-effect adjustment | $ (254,000) | ||||||
AOCI | ASU 2016-01 | |||||||
Accounting Policy [Line Items] | |||||||
Cumulative-effect adjustment | $ 198,000 | ||||||
[1] | (2) Reflects the liability reported within other liabilities on the consolidated statements of condition. |
Investments (Additional Informa
Investments (Additional Information) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Investments [Line Items] | ||||
Net unrealized gains (losses) on available-for-sale securities, net of tax | $ 3,250,000 | $ (17,826,000) | $ (10,300,000) | $ (6,085,000) |
Deferred Tax Liabilities, Investments | $ 890,000,000 | |||
Deferred Tax Assets, Unrealized Losses on Available-for-Sale Securities, Gross | $ 4,900,000 | |||
Unrealized Loss as a Percent of Amortized Cost | 1.00% | 3.00% | ||
Security Owned And Pledged As Collateral Amortized Cost | $ 709,000,000 | $ 734,100,000 | ||
Security Owned and Pledged as Collateral, Fair Value | 712,400,000 | 714,400,000 | ||
Marketable Securities, Unrealized Gain (Loss) | $ 928,000 | $ (50,000) |
Investments (Summary of Amortiz
Investments (Summary of Amortized Costs and Estimated Fair Values of Available-For-Sale Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
AFS Investments (carried at fair value): | ||
Amortized Cost | $ 913,978 | $ 933,399 |
Unrealized Gains | 9,551 | 1,829 |
Unrealized Losses | (5,411) | (24,536) |
AFS securities | 918,118 | 910,692 |
HTM Investments (carried at amortized cost): | ||
HTM Amortized Cost | 1,302 | 1,307 |
Unrealized Gains | 57 | 8 |
Unrealized Losses | 0 | (24) |
Debt Securities, Held-to-maturity, Fair Value | 1,359 | 1,291 |
Obligations of states and political subdivisions | ||
AFS Investments (carried at fair value): | ||
Amortized Cost | 115,632 | 94,430 |
Unrealized Gains | 2,779 | 216 |
Unrealized Losses | (328) | (894) |
AFS securities | 118,083 | 93,752 |
HTM Investments (carried at amortized cost): | ||
HTM Amortized Cost | 1,302 | 1,307 |
Unrealized Gains | 57 | 8 |
Unrealized Losses | 0 | (24) |
Debt Securities, Held-to-maturity, Fair Value | 1,359 | 1,291 |
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||
AFS Investments (carried at fair value): | ||
Amortized Cost | 462,593 | 466,613 |
Unrealized Gains | 3,398 | 583 |
Unrealized Losses | (2,605) | (13,524) |
AFS securities | 463,386 | 453,672 |
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
AFS Investments (carried at fair value): | ||
Amortized Cost | 325,200 | 351,958 |
Unrealized Gains | 3,183 | 1,007 |
Unrealized Losses | (2,478) | (10,071) |
AFS securities | 325,905 | 342,894 |
Subordinated corporate bonds | ||
AFS Investments (carried at fair value): | ||
Amortized Cost | 10,553 | 20,398 |
Unrealized Gains | 191 | 23 |
Unrealized Losses | 0 | (47) |
AFS securities | $ 10,744 | $ 20,374 |
Investments (Unrealized Gross L
Investments (Unrealized Gross Losses and Estimated Fair values of Investment Securities by Length of Time that Individual Securities in Each Category in Continuous Loss Position) (Details) $ in Thousands | Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Debt Securities, Available-for-sale [Line Items] | ||
Number of Holdings, AFS Investments in Unrealized Loss Positions | security | 105 | 300 |
AFS Fair Value - Less Than 12 Months Loss Position | $ 259,972 | $ 100,011 |
AFS Unrealized Losses - Less Than 12 Months Loss Position | (2,911) | (599) |
AFS Fair Value - 12 Months or More Loss Position | 132,247 | 621,294 |
AFS Unrealized Losses - 12 Months or More Loss Position | (2,500) | (23,937) |
AFS Fair Value - Loss Position | 392,219 | 721,305 |
AFS Unrealized Losses | $ (5,411) | $ (24,536) |
Number of Holdings, HTM Investments in Unrealized Loss Positions | security | 2 | |
HTM Fair Value - Less Than 12 Months Loss Position | $ 509 | |
HTM Unrealized Losses - Less Than 12 Months Loss Position | (5) | |
HTM Fair Value - 12 Months or More Loss Position | 411 | |
HTM Fair Value - 12 Months or More Loss Position | (19) | |
HTM Fair Value - Loss Position | 920 | |
HTM Unrealized Losses | $ (24) | |
Obligations of states and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of Holdings, AFS Investments in Unrealized Loss Positions | security | 11 | 114 |
AFS Fair Value - Less Than 12 Months Loss Position | $ 30,459 | $ 36,218 |
AFS Unrealized Losses - Less Than 12 Months Loss Position | (328) | (281) |
AFS Fair Value - 12 Months or More Loss Position | 0 | 28,437 |
AFS Unrealized Losses - 12 Months or More Loss Position | 0 | (613) |
AFS Fair Value - Loss Position | 30,459 | 64,655 |
AFS Unrealized Losses | $ (328) | $ (894) |
Number of Holdings, HTM Investments in Unrealized Loss Positions | security | 2 | |
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of Holdings, AFS Investments in Unrealized Loss Positions | security | 59 | 117 |
AFS Fair Value - Less Than 12 Months Loss Position | $ 162,964 | $ 46,459 |
AFS Unrealized Losses - Less Than 12 Months Loss Position | (1,850) | (252) |
AFS Fair Value - 12 Months or More Loss Position | 63,633 | 364,430 |
AFS Unrealized Losses - 12 Months or More Loss Position | (755) | (13,272) |
AFS Fair Value - Loss Position | 226,597 | 410,889 |
AFS Unrealized Losses | $ (2,605) | $ (13,524) |
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of Holdings, AFS Investments in Unrealized Loss Positions | security | 35 | 63 |
AFS Fair Value - Less Than 12 Months Loss Position | $ 66,549 | $ 5,956 |
AFS Unrealized Losses - Less Than 12 Months Loss Position | (733) | (40) |
AFS Fair Value - 12 Months or More Loss Position | 68,614 | 227,461 |
AFS Unrealized Losses - 12 Months or More Loss Position | (1,745) | (10,031) |
AFS Fair Value - Loss Position | 135,163 | 233,417 |
AFS Unrealized Losses | $ (2,478) | (10,071) |
HTM Fair Value - Less Than 12 Months Loss Position | 509 | |
HTM Unrealized Losses - Less Than 12 Months Loss Position | (5) | |
HTM Fair Value - 12 Months or More Loss Position | 411 | |
HTM Fair Value - 12 Months or More Loss Position | (19) | |
HTM Fair Value - Loss Position | 920 | |
HTM Unrealized Losses | $ (24) | |
Subordinated corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of Holdings, AFS Investments in Unrealized Loss Positions | security | 6 | |
AFS Fair Value - Less Than 12 Months Loss Position | $ 11,378 | |
AFS Unrealized Losses - Less Than 12 Months Loss Position | (26) | |
AFS Fair Value - 12 Months or More Loss Position | 966 | |
AFS Unrealized Losses - 12 Months or More Loss Position | (21) | |
AFS Fair Value - Loss Position | 12,344 | |
AFS Unrealized Losses | $ (47) |
Investments (Company's Sale of
Investments (Company's Sale of AFS Investments) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from sales of AFS investments(1) | [1] | $ 207,001,000 | $ 56,155,000 | $ 20,366,000 |
Gross realized gains | 1,427,000 | 32,000 | 869,000 | |
Gross realized losses | (1,532,000) | (695,000) | (14,000) | |
OTTI, AFS investments sold | $ 0 | $ 0 | $ 0 | |
[1] | (1)The Company had not previously recorded any OTTI on these investments sold. |
Investments (Amortized Cost and
Investments (Amortized Cost and Estimated Fair Values of Debt Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available-for-sale, Amortized Cost | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 76,027 | |
Due after five years through ten years | 207,757 | |
Due after ten years | 630,194 | |
Total | 913,978 | |
Available-for-sale, Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 76,341 | |
Due after five years through ten years | 208,866 | |
Due after ten years | 632,911 | |
Total | 918,118 | |
Due in one year or less | 0 | |
Held-to-maturity, Amortized Cost | ||
Due in one year or less | 0 | |
Due after one year through five years | 512 | |
Due after five years through ten years | 790 | |
Due after ten years | 0 | |
HTM Amortized Cost | 1,302 | $ 1,307 |
Held-to-maturity, Fair Value | ||
Debt Securities, Held-to-maturity, Maturity, Remainder of Fiscal Year, Fair Value | 0 | |
Due after one year through five years | 532 | |
Due after five years through ten years | 827 | |
Due after ten years | 0 | |
Debt Securities, Held-to-maturity, Fair Value | $ 1,359 | $ 1,291 |
Investments Investments (Schedu
Investments Investments (Schedule of Amortized Cost and Fair Value of Other Investments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Equity securities - bank stock, Amortized Cost | $ 544 | $ 544 |
Equity securities - bank stock, Unrealized Gains | 1,130 | 202 |
Equity securities - bank stock, Unrealized Losses | 0 | 0 |
Equity securities - bank stock, Fair Value | 1,674 | 746 |
FHLBB (carried at cost) | 6,601 | 8,559 |
FRB (carried at cost) | 5,374 | 5,374 |
Other Investments, Amortized Cost | 12,519 | 14,477 |
Other Investments, Unrealized Gain | 1,130 | 202 |
Other Investments, Unrealized Loss | 0 | 0 |
Other Investments | $ 13,649 | $ 14,679 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Additional Information) (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Related Parties, Description | At December 31, 2019 and 2018, outstanding loans to certain officers, directors and their associated companies was less than 5% of the Company's shareholders' equity. | December 31, 2019 and 2018, outstanding loans to certain officers, directors and their associated companies was less than 5% of the Company's shareholders' equity. | |
Number of Portfolio Concentration Industries | 0 | ||
Foregone interest | $ 420,000 | $ 600,000 | $ 843,000 |
Loans and Leases Receivable, Impaired, Commitment to Lend | $ 0 | ||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | loan | 0 | ||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 0 | ||
Allowance Related to Troubled Debt Restructurings assigned during period | $ 15,000 | 95,000 | $ 45,000 |
Residential real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable in Process of Foreclosure | 1,300,000 | 2,300,000 | |
Loans Receivable [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Performing TDRs | 3,000,000 | 3,900,000 | |
Non-Performing TDRs | $ 600,000 | $ 500,000 | |
Minimum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Months | 18 | ||
Minimum [Member] | HPFC Portfolio Segment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Term to maturity (years) | 7 years | ||
Maximum [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Months | 24 | ||
Maximum [Member] | HPFC Portfolio Segment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Term to maturity (years) | 10 years | ||
Total Loan Portfolio [Member] | Loan Concentration Risk [Member] | Non-Residential Building Operators Industry Sector [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Concentration Risk, Percentage | 12.00% | ||
Commercial real estate | Loan Concentration Risk [Member] | Non-Residential Building Operators Industry Sector [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Concentration Risk, Percentage | 31.00% | ||
Home Equity Loan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 1 | ||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 299,000 | ||
Allowance Related to Troubled Debt Restructurings assigned during period | $ 162,000 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses (Composition of Loan Portfolio, Excluding Residential Loans Held for Sale) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 3,095,023 | $ 3,026,222 | $ 2,782,439 |
Residential real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 1,070,374 | 992,866 | |
Loans | 1,070,374 | 992,866 | 858,369 |
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 1,243,397 | 1,269,533 | |
Loans | 1,243,397 | 1,269,533 | 1,164,023 |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 421,108 | 381,780 | |
Loans | 421,108 | 381,780 | 373,400 |
Home equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 312,779 | 327,763 | |
Loans | 312,779 | 327,763 | 323,378 |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 25,772 | 20,624 | |
Loans | 25,772 | 20,624 | 18,149 |
HPFC Portfolio Segment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 21,593 | 33,656 | |
Loans | $ 21,593 | $ 33,656 | $ 45,120 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses (Schedule of FV mark amortization) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Net Unamortized Fair Value Mark Discount on Loans | $ 2,593 | $ 3,936 |
Net unamortized loan origination costs | (3,111) | (1,865) |
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | $ (518) | $ 2,071 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses (Activity in Allowance for Loan Losses by Portfolio Segment) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | $ 24,712,000 | $ 24,171,000 | $ 23,116,000 | |
Loans charged off | (2,713,000) | (2,248,000) | (2,468,000) | |
Recoveries | 310,000 | 1,944,000 | 497,000 | |
Provision (credit) | [1] | 2,862,000 | 845,000 | 3,026,000 |
Ending balance | 25,171,000 | 24,712,000 | 24,171,000 | |
Ending Balance: Individually evaluated for impairment | 463,000 | 824,000 | 2,009,000 | |
Ending Balance: Collectively evaluated for impairment | 24,708,000 | 23,888,000 | 22,162,000 | |
Ending Balance: Individually evaluated for impairment | 4,478,000 | 6,926,000 | 13,590,000 | |
Ending Balance: Collectively evaluated for impairment | 3,090,545,000 | 3,019,296,000 | 2,768,849,000 | |
Total loan balances | 3,095,023,000 | 3,026,222,000 | 2,782,439,000 | |
Reserve for unfunded commitments | 21,000 | 22,000 | 20,000 | |
Residential real estate | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 6,071,000 | 5,086,000 | 4,160,000 | |
Loans charged off | (462,000) | (173,000) | (482,000) | |
Recoveries | 16,000 | 90,000 | 30,000 | |
Provision (credit) | [1] | 217,000 | 1,068,000 | 1,378,000 |
Ending balance | 5,842,000 | 6,071,000 | 5,086,000 | |
Ending Balance: Individually evaluated for impairment | 364,000 | 586,000 | 568,000 | |
Ending Balance: Collectively evaluated for impairment | 5,478,000 | 5,485,000 | 4,518,000 | |
Ending Balance: Individually evaluated for impairment | 3,384,000 | 4,762,000 | 5,171,000 | |
Ending Balance: Collectively evaluated for impairment | 1,066,990,000 | 988,104,000 | 853,198,000 | |
Total loan balances | 1,070,374,000 | 992,866,000 | 858,369,000 | |
Commercial real estate | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 11,654,000 | 11,863,000 | 12,154,000 | |
Loans charged off | (300,000) | (512,000) | (124,000) | |
Recoveries | 49,000 | 28,000 | 141,000 | |
Provision (credit) | [1] | 1,011,000 | 275,000 | (308,000) |
Ending balance | 12,414,000 | 11,654,000 | 11,863,000 | |
Ending Balance: Individually evaluated for impairment | 30,000 | 23,000 | 1,441,000 | |
Ending Balance: Collectively evaluated for impairment | 12,384,000 | 11,631,000 | 10,422,000 | |
Ending Balance: Individually evaluated for impairment | 402,000 | 930,000 | 6,199,000 | |
Ending Balance: Collectively evaluated for impairment | 1,242,995,000 | 1,268,603,000 | 1,157,824,000 | |
Total loan balances | 1,243,397,000 | 1,269,533,000 | 1,164,023,000 | |
Commercial | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 3,620,000 | 4,171,000 | 3,755,000 | |
Loans charged off | (1,167,000) | (736,000) | (1,014,000) | |
Recoveries | 225,000 | 1,770,000 | 301,000 | |
Provision (credit) | [1] | 1,091,000 | (1,585,000) | 1,129,000 |
Ending balance | 3,769,000 | 3,620,000 | 4,171,000 | |
Ending Balance: Individually evaluated for impairment | 53,000 | |||
Ending Balance: Collectively evaluated for impairment | 3,769,000 | 3,567,000 | 4,171,000 | |
Ending Balance: Individually evaluated for impairment | 319,000 | 786,000 | 1,791,000 | |
Ending Balance: Collectively evaluated for impairment | 420,789,000 | 380,994,000 | 371,609,000 | |
Total loan balances | 421,108,000 | 381,780,000 | 373,400,000 | |
Home equity | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 2,796,000 | 2,367,000 | 2,194,000 | |
Loans charged off | (412,000) | (476,000) | (434,000) | |
Recoveries | 1,000 | 44,000 | 2,000 | |
Provision (credit) | [1] | 38,000 | 861,000 | 605,000 |
Ending balance | 2,423,000 | 2,796,000 | 2,367,000 | |
Ending Balance: Individually evaluated for impairment | 69,000 | 162,000 | ||
Ending Balance: Collectively evaluated for impairment | 2,354,000 | 2,634,000 | 2,367,000 | |
Ending Balance: Individually evaluated for impairment | 373,000 | 442,000 | 429,000 | |
Ending Balance: Collectively evaluated for impairment | 312,406,000 | 327,321,000 | 322,949,000 | |
Total loan balances | 312,779,000 | 327,763,000 | 323,378,000 | |
Consumer | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 234,000 | 233,000 | 181,000 | |
Loans charged off | (301,000) | (96,000) | (124,000) | |
Recoveries | 19,000 | 11,000 | 17,000 | |
Provision (credit) | [1] | 555,000 | 86,000 | 159,000 |
Ending balance | 507,000 | 234,000 | 233,000 | |
Ending Balance: Collectively evaluated for impairment | 507,000 | 234,000 | 233,000 | |
Ending Balance: Individually evaluated for impairment | 6,000 | |||
Ending Balance: Collectively evaluated for impairment | 25,772,000 | 20,618,000 | 18,149,000 | |
Total loan balances | 25,772,000 | 20,624,000 | 18,149,000 | |
HPFC Portfolio Segment | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 337,000 | 451,000 | 672,000 | |
Loans charged off | (71,000) | (255,000) | (290,000) | |
Recoveries | 1,000 | 6,000 | ||
Provision (credit) | [1] | (50,000) | 140,000 | 63,000 |
Ending balance | 216,000 | 337,000 | 451,000 | |
Ending Balance: Collectively evaluated for impairment | 216,000 | 337,000 | 451,000 | |
Ending Balance: Collectively evaluated for impairment | 21,593,000 | 33,656,000 | 45,120,000 | |
Total loan balances | $ 21,593,000 | $ 33,656,000 | $ 45,120,000 | |
[1] | (1) The provision (credit) for loan losses excludes any impact for the change in the reserve for unfunded commitments, which represents management's estimate of the amount required to reflect the probable inherent losses on outstanding letters of credit and unused lines of credit. The reserve for unfunded commitments was presented within accrued interest and other liabilities on the consolidated statements of condition. At December 31, 2019, 2018, and 2017, the reserve for unfunded commitments was $21,000, $22,000 and $20,000, respectively. |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses (Schedule of Provision for Credit Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Receivables [Abstract] | ||||||||||||
Provision for loan losses | [1] | $ 2,862 | $ 845 | $ 3,026 | ||||||||
Change in reserve for unfunded commitments | (1) | 2 | 9 | |||||||||
Provision for credit losses | $ 214 | $ 730 | $ 1,173 | $ 744 | $ 7 | $ 354 | $ 983 | $ (497) | $ 2,861 | $ 847 | $ 3,035 | |
[1] | (1) The provision (credit) for loan losses excludes any impact for the change in the reserve for unfunded commitments, which represents management's estimate of the amount required to reflect the probable inherent losses on outstanding letters of credit and unused lines of credit. The reserve for unfunded commitments was presented within accrued interest and other liabilities on the consolidated statements of condition. At December 31, 2019, 2018, and 2017, the reserve for unfunded commitments was $21,000, $22,000 and $20,000, respectively. |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses (Credit Risk Exposure Indicators by Portfolio Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $ 3,095,023 | $ 3,026,222 | $ 2,782,439 |
Pass (Grades 1 – 6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,696,045 | 2,636,966 | |
Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 336,401 | 346,512 | |
Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 34,859 | 12,619 | |
Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 25,568 | 28,250 | |
Non-performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,150 | 1,875 | |
Residential real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,070,374 | 992,866 | 858,369 |
Residential real estate | Pass (Grades 1 – 6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,062,825 | 983,086 | |
Residential real estate | Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 473 | 887 | |
Residential real estate | Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 7,076 | 8,893 | |
Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,243,397 | 1,269,533 | 1,164,023 |
Commercial real estate | Pass (Grades 1 – 6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,196,683 | 1,247,190 | |
Commercial real estate | Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 31,753 | 7,921 | |
Commercial real estate | Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 14,961 | 14,422 | |
Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 421,108 | 381,780 | 373,400 |
Commercial | Pass (Grades 1 – 6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 415,870 | 374,429 | |
Commercial | Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,544 | 3,688 | |
Commercial | Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,694 | 3,663 | |
Home equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 312,779 | 327,763 | 323,378 |
Home equity | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 310,653 | 325,917 | |
Home equity | Non-performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,126 | 1,846 | |
Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 25,772 | 20,624 | 18,149 |
Consumer | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 25,748 | 20,595 | |
Consumer | Non-performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 24 | 29 | |
HPFC Portfolio Segment | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 21,593 | 33,656 | $ 45,120 |
HPFC Portfolio Segment | Pass (Grades 1 – 6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 20,667 | 32,261 | |
HPFC Portfolio Segment | Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 89 | 123 | |
HPFC Portfolio Segment | Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $ 837 | $ 1,272 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses (Loan Aging Analysis by Portfolio Segment (Including Loans Past Due Over Ninety Days and Non Accrual Loans) and Summary of Non Accrual Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 12,089 | $ 17,812 | |
Current | 3,082,934 | 3,008,410 | |
Total loan balances | 3,095,023 | 3,026,222 | $ 2,782,439 |
Loans 90 Days Past Due and Accruing | 14 | ||
Non-Accrual Loans | 8,156 | 10,530 | |
Residential real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 5,522 | 9,866 | |
Current | 1,064,852 | 983,000 | |
Total loan balances | 1,070,374 | 992,866 | 858,369 |
Non-Accrual Loans | 4,096 | 5,492 | |
Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,531 | 3,271 | |
Current | 1,240,866 | 1,266,262 | |
Total loan balances | 1,243,397 | 1,269,533 | 1,164,023 |
Non-Accrual Loans | 1,122 | 1,380 | |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 965 | 968 | |
Current | 420,143 | 380,812 | |
Total loan balances | 421,108 | 381,780 | 373,400 |
Non-Accrual Loans | 420 | 1,279 | |
Home equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,378 | 2,990 | |
Current | 310,401 | 324,773 | |
Total loan balances | 312,779 | 327,763 | 323,378 |
Non-Accrual Loans | 2,130 | 1,846 | |
Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 162 | 111 | |
Current | 25,610 | 20,513 | |
Total loan balances | 25,772 | 20,624 | 18,149 |
Loans 90 Days Past Due and Accruing | 14 | ||
Non-Accrual Loans | 24 | 15 | |
HPFC Portfolio Segment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 531 | 606 | |
Current | 21,062 | 33,050 | |
Total loan balances | 21,593 | 33,656 | $ 45,120 |
Non-Accrual Loans | 364 | 518 | |
30 – 59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,901 | 6,218 | |
30 – 59 Days Past Due | Residential real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,297 | 3,300 | |
30 – 59 Days Past Due | Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 267 | 1,794 | |
30 – 59 Days Past Due | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 548 | 150 | |
30 – 59 Days Past Due | Home equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 681 | 907 | |
30 – 59 Days Past Due | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 108 | 67 | |
60 – 89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,859 | 3,239 | |
60 – 89 Days Past Due | Residential real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 627 | 2,046 | |
60 – 89 Days Past Due | Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,720 | 369 | |
60 – 89 Days Past Due | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 19 | ||
60 – 89 Days Past Due | Home equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 238 | 607 | |
60 – 89 Days Past Due | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 31 | 15 | |
60 – 89 Days Past Due | HPFC Portfolio Segment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 243 | 183 | |
Greater Than 90 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 5,329 | 8,355 | |
Greater Than 90 Days | Residential real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,598 | 4,520 | |
Greater Than 90 Days | Commercial real estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 544 | 1,108 | |
Greater Than 90 Days | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 417 | 799 | |
Greater Than 90 Days | Home equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,459 | 1,476 | |
Greater Than 90 Days | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 23 | 29 | |
Greater Than 90 Days | HPFC Portfolio Segment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 288 | $ 423 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses (Summary of All Troubled Debt Restructuring Loans (Accruing and Non Accruing) by Portfolio Segment) (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($)loan | |
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 27 | 31 | |
Recorded Investment | $ 3,629,000 | $ 4,406,000 | |
Specific Reserve | $ 463,000 | $ 628,000 | |
Number of Contracts | 2 | 3 | 5 |
Pre-Modification Outstanding Recorded Investment | $ 64,000 | $ 397,000 | $ 895,000 |
Post-Modification Outstanding Recorded Investment | 69,000 | 420,000 | 914,000 |
Specific Reserve | $ 15,000 | $ 95,000 | $ 45,000 |
Commercial real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 2 | 2 | |
Recorded Investment | $ 338,000 | $ 347,000 | |
Specific Reserve | $ 30,000 | $ 23,000 | |
Commercial | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 2 | 2 | |
Recorded Investment | $ 123,000 | $ 141,000 | |
Specific Reserve | $ 0 | $ 0 | |
Home equity | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 1 | 2 | |
Recorded Investment | $ 299,000 | $ 304,000 | |
Specific Reserve | $ 69,000 | $ 162,000 | |
Residential real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 22 | 25 | |
Recorded Investment | $ 2,869,000 | $ 3,614,000 | |
Specific Reserve | $ 364,000 | 443,000 | |
Home Equity Loan | |||
Financing Receivable, Modifications [Line Items] | |||
Specific Reserve | $ 162,000 | ||
Maturity Concession | Residential real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | 0 | 0 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 298,000 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 298,000 |
Specific Reserve | $ 0 | $ 0 | $ 15,000 |
Interest Rate Concession | Residential real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 0 | 0 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 134,000 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 145,000 |
Specific Reserve | $ 0 | $ 0 | $ 0 |
Interest Rate and Maturity Concession | Residential real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 2 | 2 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 64,000 | $ 231,000 | $ 148,000 |
Post-Modification Outstanding Recorded Investment | 69,000 | 254,000 | 156,000 |
Specific Reserve | $ 15,000 | $ 50,000 | $ 30,000 |
Interest Rate and Maturity Concession | Home Equity Loan | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 0 | 0 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 315,000 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 315,000 |
Specific Reserve | $ 0 | $ 0 | $ 0 |
Payment Deferral | Residential real estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 0 | 1 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 166,000 | $ 0 |
Post-Modification Outstanding Recorded Investment | 0 | 166,000 | 0 |
Specific Reserve | $ 0 | $ 45,000 | $ 0 |
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 | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | |||
Recorded investment with related allowance recorded | $ 2,841 | $ 4,476 | $ 9,280 |
Unpaid principal balance with related allowance recorded | 2,841 | 4,476 | 9,280 |
Average recorded investment with related allowance recorded | 3,933 | 5,921 | 12,257 |
Interest income recognized with related allowance recorded | 121 | 138 | 153 |
Recorded investment without related allowance recorded | 1,637 | 2,450 | 4,310 |
Unpaid principal balance without related allowance recorded | 2,426 | 3,001 | 6,216 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | |
Average recorded investment without related allowance recorded | 1,993 | 5,368 | 4,709 |
Interest income recognized without related allowance recorded | 41 | 55 | 62 |
Recorded investment, total impaired loans | 4,478 | 6,926 | 13,590 |
Unpaid principal balance, total impaired loans | 5,267 | 7,477 | 15,496 |
Related allowance, total impaired loans | 463 | 824 | 2,009 |
Average recorded investment, total impaired loans | 5,926 | 11,289 | 16,966 |
Interest income recognized, total impaired loans | 162 | 193 | 215 |
Residential real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment with related allowance recorded | 2,395 | 3,471 | 3,858 |
Unpaid principal balance with related allowance recorded | 2,395 | 3,471 | 3,858 |
Average recorded investment with related allowance recorded | 2,989 | 3,591 | 3,177 |
Interest income recognized with related allowance recorded | 110 | 127 | 131 |
Recorded investment without related allowance recorded | 989 | 1,291 | 1,313 |
Unpaid principal balance without related allowance recorded | 1,116 | 1,415 | 1,673 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | |
Average recorded investment without related allowance recorded | 1,258 | 1,524 | 1,345 |
Interest income recognized without related allowance recorded | 21 | 34 | 15 |
Related allowance, total impaired loans | 364 | 586 | 568 |
Commercial real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment with related allowance recorded | 128 | 131 | 5,422 |
Unpaid principal balance with related allowance recorded | 128 | 131 | 5,422 |
Average recorded investment with related allowance recorded | 130 | 1,969 | 8,900 |
Interest income recognized with related allowance recorded | 11 | 11 | 22 |
Recorded investment without related allowance recorded | 274 | 799 | 777 |
Unpaid principal balance without related allowance recorded | 433 | 975 | 1,084 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | |
Average recorded investment without related allowance recorded | 381 | 2,269 | 1,132 |
Interest income recognized without related allowance recorded | 13 | 13 | 29 |
Related allowance, total impaired loans | 30 | 23 | 1,441 |
Commercial | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment with related allowance recorded | 556 | ||
Unpaid principal balance with related allowance recorded | 556 | ||
Average recorded investment with related allowance recorded | 292 | 111 | 31 |
Recorded investment without related allowance recorded | 319 | 230 | 1,791 |
Unpaid principal balance without related allowance recorded | 685 | 293 | 2,964 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | |
Average recorded investment without related allowance recorded | 238 | 1,379 | 1,920 |
Interest income recognized without related allowance recorded | 7 | 8 | 10 |
Related allowance, total impaired loans | 0 | 53 | |
Home equity | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment with related allowance recorded | 318 | 318 | |
Unpaid principal balance with related allowance recorded | 318 | 318 | |
Average recorded investment with related allowance recorded | 522 | 250 | 125 |
Recorded investment without related allowance recorded | 55 | 124 | 429 |
Unpaid principal balance without related allowance recorded | 192 | 305 | 495 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | |
Average recorded investment without related allowance recorded | 115 | 195 | 310 |
Interest income recognized without related allowance recorded | 8 | ||
Related allowance, total impaired loans | 69 | 162 | |
Consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment without related allowance recorded | 6 | ||
Unpaid principal balance without related allowance recorded | 13 | ||
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | |
Average recorded investment without related allowance recorded | 1 | 1 | 2 |
Related allowance, total impaired loans | 0 | 0 | |
HPFC Portfolio Segment | |||
Financing Receivable, Impaired [Line Items] | |||
Average recorded investment with related allowance recorded | 24 | ||
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | |
Average recorded investment without related allowance recorded | |||
Related allowance, total impaired loans | $ 0 | $ 0 |
Goodwill and Core Deposit Int_3
Goodwill and Core Deposit Intangible Assets Goodwill and Core Deposit Intangible Assets (Additional Information) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 94,697,000 | $ 94,697,000 | |
Goodwill, Impairment Loss | 0 | 0 | $ 0 |
Goodwill, Impaired, Accumulated Impairment Loss | 3,600,000 | 3,600,000 | |
Amortization of intangible assets | $ 705,000 | $ 725,000 | $ 1,809,000 |
Goodwill and Core Deposit Int_4
Goodwill and Core Deposit Intangible Assets Goodwill and Core Deposit Intangible Assets (Schedule of Finite-Lived Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Net Carrying Amount | ||
Total | $ 3,525 | |
Core Deposit Intangible | ||
Gross Carrying Amount | ||
Total | 6,451 | $ 6,451 |
Accumulated Amortization | ||
Total | (2,926) | (2,221) |
Net Carrying Amount | ||
Total | $ 3,525 | $ 4,230 |
Goodwill and Core Deposit Int_5
Goodwill and Core Deposit Intangible Assets Goodwill and Core Deposit Intangible Assets (Schedule of Expected Future Amortization of Intangible Assets) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Other Intangible Assets [Abstract] | |
2020 | $ 682 |
2021 | 655 |
2022 | 625 |
2023 | 592 |
2024 | 556 |
Thereafter | 415 |
Total | $ 3,525 |
Premises and Equipment Premises
Premises and Equipment Premises and Equipment (Additional Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 33,133 | $ 40,558 | |
Gain (Loss) on Disposition of Property Plant Equipment | 0 | 0 | $ 0 |
Software and Software Development Costs [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Capitalized Computer Software, Gross | 2,300 | 4,000 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 2,100 | $ 3,700 |
Premises and Equipment (Equipme
Premises and Equipment (Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 74,969 | $ 83,053 |
Accumulated depreciation and amortization | (33,133) | (40,558) |
Premises and equipment, net | 41,836 | 42,495 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 46,856 | 47,548 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 18,915 | 26,288 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 9,198 | $ 9,217 |
Premises and Equipment - Deprec
Premises and Equipment - Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation, Depletion and Amortization, Nonproduction | $ 3,891 | $ 3,765 | $ 3,761 |
Furniture and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 2,132 | 1,938 | 1,874 |
Premises | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 1,593 | 1,609 | 1,643 |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 166 | $ 218 | $ 244 |
Leases Leases (Additional Infor
Leases Leases (Additional Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Leases [Abstract] | |||
Operating Leases, Rent Expense, Net | $ 1,300 | $ 1,300 | |
Lessee, Finance Lease, Least Not Yet Commenced, Lease Liability | $ 3,400 |
Leases Leases (Components of Le
Leases Leases (Components of Lease Expense) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($) | ||
Leases [Abstract] | ||
Operating lease assets | $ 13,002 | |
Finance lease assets | 1,502 | |
Total leases assets | 14,504 | |
Operating lease liabilities | 13,059 | [1] |
Finance lease liabilities | 1,665 | [1] |
Lease liabilities | 14,724 | |
Operating lease cost | 1,480 | [2] |
Amortization of right-of-use assets | 110 | |
Interest on lease liabilities | 68 | [3] |
Total finance lease cost | 178 | |
Total lease cost | $ 1,658 | |
[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 Leases (Supplemental Cas
Leases Leases (Supplemental Cash Flow and Balance Sheet Information) (Details) - USD ($) | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||||
Operating cash flows from operating leases | $ 1,394,000 | ||||
Operating cash flows from finance leases | 68,000 | ||||
Financing cash flows from finance leases | 106,000 | $ 0 | $ 0 | ||
Right-of-use assets obtained in exchange for new lease obligations: | |||||
Operating leases | [1] | 14,030,000 | |||
Finance leases | [1] | $ 1,612,000 | |||
Weighted average remaining lease term (years) | |||||
Operating leases | 15 years 2 months | ||||
Finance leases | 22 years 5 months 12 days | ||||
Weighted average discount rate: | |||||
Operating Leases | 3.39% | ||||
Finance leases | 4.00% | ||||
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 Leases (Maturities of Op
Leases Leases (Maturities of Operating and Finance Lease Liabilities) (Details) $ in Thousands | Dec. 31, 2019USD ($) | |
Operating leases | ||
2020 | $ 1,452 | |
2021 | 1,374 | |
2022 | 1,363 | |
2023 | 1,239 | |
2024 | 1,200 | |
Thereafter | 10,342 | |
Total minimum lease payments | 16,970 | |
Less: amount representing interest | 3,911 | [1] |
Present value of net minimum lease payments | 13,059 | [2] |
Finance leases | ||
2020 | 174 | |
2021 | 174 | |
2022 | 174 | |
2023 | 174 | |
2024 | 174 | |
Thereafter | 1,922 | |
Total minimum lease payments | 2,792 | |
Less: amount representing interest | 1,127 | [1] |
Present value of net minimum lease payments | $ 1,665 | [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 Leases (Future Minimum L
Leases 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. |
Mortgage Banking (Additional In
Mortgage Banking (Additional Information) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Servicing Assets at Fair Value [Line Items] | |||||
Gain (Loss) on Sale of Mortgage Loans | $ 6,365,000 | $ 5,451,000 | $ 6,256,000 | ||
Receivables Held-for-sale, Amount | 11,900,000 | 4,300,000 | |||
Unrealized Gain (Loss) on Derivatives | (61,000) | 89,000 | |||
Unrealized gain (loss) on loans held for sale | (150,000) | 52,000 | 326,000 | ||
Fees and Commissions, Mortgage Banking and Servicing | 7,837,000 | 5,914,000 | 7,363,000 | ||
Servicing Asset at Amortized Cost | $ 877,000 | $ 831,000 | 1,025,000 | $ 1,210,000 | |
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed | 14.40% | 11.50% | |||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate | 11.20% | 11.10% | |||
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 10 Percent Adverse Change in Prepayment Speed | $ 65,000 | ||||
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 20 Percent Adverse Change in Prepayment Speed | 126,000 | ||||
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 10 Percent Adverse Change in Discount Rate | 47,000 | ||||
Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 20 Percent Adverse Change in Discount Rate | 90,000 | ||||
Capitalized servicing right fees upon sale(1) | [1] | 263,000 | $ 0 | 22,000 | |
Fixed Rate Residential Mortgage [Member] | |||||
Servicing Assets at Fair Value [Line Items] | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Cost of Mortgage Sold | 271,800,000 | 205,900,000 | 218,600,000 | ||
Forward Contracts [Member] | |||||
Servicing Assets at Fair Value [Line Items] | |||||
Unrealized Gain (Loss) on Derivatives | 282,000 | (127,000) | (136,000) | ||
Servicing Assets | |||||
Servicing Assets at Fair Value [Line Items] | |||||
Mortgage loans serviced during period, value | 227,800,000 | 235,400,000 | |||
Fees and Commissions, Mortgage Banking and Servicing | $ 898,000,000 | $ 900,000 | $ 1,000,000 | ||
[1] | (1)Associated income was reported within mortgage banking income, net on the consolidated statements of income. |
Mortgage Banking (Schedule of M
Mortgage Banking (Schedule of Mortgage Servicing) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||
Balance at beginning of year | $ 831,000 | $ 1,025,000 | $ 1,210,000 | |
Capitalized servicing right fees upon sale(1) | [1] | 263,000 | 0 | 22,000 |
Amortization charged against mortgage servicing fee income(2) | [2] | (216,000) | (200,000) | (430,000) |
Valuation adjustment | (1,000) | (6,000) | (223,000) | |
Balance at end of year | 877,000 | 831,000 | 1,025,000 | |
Valuation Allowance: | ||||
Balance at beginning of year | (1,000) | (7,000) | (230,000) | |
(Increase) decrease in impairment reserve | (1,000) | 6,000 | 223,000 | |
Balance at end of year | (2,000) | (1,000) | (7,000) | |
Fair value, beginning of year | 1,677,000 | 1,766,000 | 1,701,000 | |
Fair value, end of year | $ 1,496,000 | $ 1,677,000 | $ 1,766,000 | |
[1] | (1)Associated income was reported within mortgage banking income, net on the consolidated statements of income. | |||
[2] | (2)Associated amortization expense was reported within mortgage banking income, net on the consolidated statements of income. |
Deposits (Details)
Deposits (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
1 year or less | $ 474,530,000 | $ 461,207,000 |
Over 1 year to 2 years | 61,100,000 | 123,397,000 |
Over 2 years to 3 years | 21,682,000 | 35,235,000 |
Over 3 years to 4 years | 14,211,000 | 20,045,000 |
Over 4 years to 5 years | 18,993,000 | 15,368,000 |
Over 5 years | 5,033,000 | 6,029,000 |
Total certificates of deposit | 595,549,000 | 661,281,000 |
FDIC Insurance Limit | 250,000 | |
Time Deposits, $250,000 or more | 176,000,000 | 111,100,000 |
Deposit liabilities, collateral issued | 471,200,000 | 443,100,000 |
Deposit liabilities, reclassified | $ 889,000 | $ 1,100,000 |
Borrowings (Additional Informat
Borrowings (Additional Information) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2006 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2006 | |
Short-term Debt [Line Items] | |||||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | $ 1,400,000,000 | $ 1,100,000,000 | |||
Line of credit, maximum borrowing capacity | $ 10,000,000 | ||||
Line of credit, expiration date | Dec. 18, 2020 | ||||
Security Owned and Pledged as Collateral, Fair Value | $ 712,400,000 | 714,400,000 | |||
Securities Sold under Agreements to Repurchase | 237,984,000 | 245,868,000 | |||
Amortization of Debt Issuance Costs | 115,000 | 54,000 | |||
Interest on subordinated debentures | 3,266,000 | 3,415,000 | $ 3,408,000 | ||
Long-term Line of Credit | 0 | ||||
Federal Home Loan Bank Advances [Member] | |||||
Short-term Debt [Line Items] | |||||
Line of credit, maximum borrowing capacity | 9,900,000 | 9,900,000 | |||
Long-term Line of Credit | 0 | ||||
PNC [Member] | |||||
Short-term Debt [Line Items] | |||||
Line of credit, maximum borrowing capacity | 50,000,000 | ||||
Long-term Line of Credit | 0 | ||||
Federal Reserve Bank Advances [Member] | |||||
Short-term Debt [Line Items] | |||||
Line of credit, maximum borrowing capacity | 114,700,000 | ||||
Loans Pledged as Collateral | 161,500,000 | ||||
Security Owned and Pledged as Collateral, Fair Value | 13,000 | ||||
Long-term Line of Credit | 0 | ||||
Subordinated Debentures [Member] | Subordinated Debt [Member] | |||||
Short-term Debt [Line Items] | |||||
Debt Issuance Costs, Net | $ 251,000 | $ 366,000 | |||
Short Term Borrowing Maturing January 2017 [Member] | Short-term Debt | Minimum [Member] | |||||
Short-term Debt [Line Items] | |||||
Federal Home Loan Bank Advances Maturities Summary Fixed Interest Rate Within One Year From Balance Sheet Date | 1.45% | ||||
Short Term Borrowing Maturing January 2017 [Member] | Short-term Debt | Maximum [Member] | |||||
Short-term Debt [Line Items] | |||||
Federal Home Loan Bank Advances Maturities Summary Fixed Interest Rate Within One Year From Balance Sheet Date | 1.63% | ||||
Subsidiary One [Member] | Junior Subordinated Debt | |||||
Short-term Debt [Line Items] | |||||
Debt Instrument, Interest Rate Terms | The contract interest rate of the trust preferred securities is three-month LIBOR plus 140 basis points. | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.36% | 4.20% | |||
Subsidiary Two [Member] | Junior Subordinated Debt | |||||
Short-term Debt [Line Items] | |||||
Debt Instrument, Interest Rate Terms | The contract interest rate of the trust preferred securities is the average three-month LIBOR plus 1.42%. | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.41% | 3.86% |
Borrowings (Summary of Short te
Borrowings (Summary of Short term and Long term Borrowings and Subordinated Debentures) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
FHLBB borrowings | $ 25,000 | ||
Securities Sold under Agreements to Repurchase | $ 237,984 | $ 245,868 | |
FHLBB borrowings | |||
Debt Instrument [Line Items] | |||
Weighted Average Rate (as a percent) | 1.87% | 1.87% | |
Long-term Debt and Capital Lease Obligations, Repayments of Principal in Next Twelve Months | $ 10,000 | ||
Maturities of Long-term Debt and Capital Lease Obligations [Abstract] | |||
2018 | 25,000 | ||
2019 | 0 | ||
2020 | 0 | ||
Customer repurchase agreements | |||
Maturities of Long-term Debt and Capital Lease Obligations [Abstract] | |||
2018 | 237,984 | ||
FHLBB and correspondent bank overnight borrowings | |||
Maturities of Long-term Debt and Capital Lease Obligations [Abstract] | |||
2018 | $ 5,825 | ||
Capital lease obligation | |||
Debt Instrument [Line Items] | |||
Weighted Average Rate (as a percent) | [1] | 0.00% | 4.20% |
Maturities of Long-term Debt and Capital Lease Obligations [Abstract] | |||
2018 | [1] | $ 0 | |
2019 | [1] | 0 | |
2020 | [1] | 0 | |
2021 | [1] | 0 | |
2022 | [1] | 0 | |
Thereafter | [1] | $ 0 | |
Long-term Debt | |||
Debt Instrument [Line Items] | |||
Weighted Average Rate (as a percent) | 1.87% | 2.19% | |
Long-term Debt and Capital Lease Obligations, Repayments of Principal in Next Twelve Months | $ 10,000 | ||
Maturities of Long-term Debt and Capital Lease Obligations [Abstract] | |||
2019 | 0 | ||
2020 | 0 | ||
2021 | 0 | ||
2022 | 0 | ||
Thereafter | 0 | ||
Total long-term borrowings | $ 10,000 | $ 11,580 | |
Long-term Debt | FHLBB borrowings | |||
Debt Instrument [Line Items] | |||
Weighted Average Rate (as a percent) | 1.87% | 1.87% | |
Subordinated Debt and Junior Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Weighted Average Rate (as a percent) | 5.35% | 5.23% | |
Maturities of Long-term Debt and Capital Lease Obligations [Abstract] | |||
Thereafter | $ 59,080 | ||
Total long-term borrowings | $ 59,080 | $ 59,067 | |
Subordinated Debt | Subordinated debentures | |||
Debt Instrument [Line Items] | |||
Weighted Average Rate (as a percent) | [2] | 5.50% | 5.50% |
Maturities of Long-term Debt and Capital Lease Obligations [Abstract] | |||
Thereafter | [2] | $ 14,749 | |
Total long-term borrowings | [2] | 14,749 | $ 14,634 |
Debt Issuance Costs, Net | 251 | 366 | |
Short-term Debt | |||
Debt Instrument [Line Items] | |||
Total short-term borrowings | $ 268,809 | $ 270,868 | |
Weighted Average Rate (as a percent) | 1.28% | 1.43% | |
Maturities of Long-term Debt and Capital Lease Obligations [Abstract] | |||
2018 | $ 268,809 | ||
Short-term Debt | FHLBB borrowings | |||
Debt Instrument [Line Items] | |||
FHLBB borrowings | $ 25,000 | $ 25,000 | |
Weighted Average Rate (as a percent) | 1.79% | 2.71% | |
Short-term Debt | Customer repurchase agreements | |||
Debt Instrument [Line Items] | |||
Securities Sold under Agreements to Repurchase | $ 237,984 | $ 245,868 | |
Short-term Debt | FHLBB and correspondent bank overnight borrowings | |||
Debt Instrument [Line Items] | |||
FHLBB and correspondent bank overnight borrowings | 5,825 | 0 | |
Long-term Debt | FHLBB borrowings | |||
Maturities of Long-term Debt and Capital Lease Obligations [Abstract] | |||
Long-term Federal Home Loan Bank Advances | 10,000 | 10,000 | |
Long-term Debt | Capital lease obligation | |||
Maturities of Long-term Debt and Capital Lease Obligations [Abstract] | |||
Capital lease obligation | [1] | $ 0 | $ 1,580 |
Subsidiary One [Member] | Junior Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Weighted Average Rate (as a percent) | 5.50% | 5.38% | |
Maturities of Long-term Debt and Capital Lease Obligations [Abstract] | |||
Thereafter | $ 36,083 | ||
Total long-term borrowings | $ 36,083 | $ 36,083 | |
Subsidiary Two [Member] | Junior Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Weighted Average Rate (as a percent) | 4.45% | 4.14% | |
Maturities of Long-term Debt and Capital Lease Obligations [Abstract] | |||
Thereafter | $ 8,248 | ||
Total long-term borrowings | $ 8,248 | $ 8,350 | |
[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 1 and 6 for further information. | ||
[2] | (2)The outstanding balance of subordinated debentures was presented net of debt issuance costs of $251,000 and $366,000 at December 31, 2019 and 2018, respectively. |
Borrowings (Schedule of Advance
Borrowings (Schedule of Advances to the Federal Home Loan Bank) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Maturity Schedule Of Federal Home Loan Bank Advances [Line Items] | ||
FHLBB borrowings | $ 25,000 | |
Federal Home Loan Bank, Advances, Maturities Summary, Due in Year Two | $ 10,000 | |
FHLB advances, carrying value of residential real estate and commercial loans pledged as collateral | 1,400,000 | 1,100,000 |
FHLB advances, securities pledged as collateral | 150 | 172 |
Federal Home Loan Bank Advances | $ 40,825 | $ 35,000 |
Long-term Debt [Member] | ||
Maturity Schedule Of Federal Home Loan Bank Advances [Line Items] | ||
Debt, Weighted Average Interest Rate | 1.87% | 2.19% |
Short-term Debt | ||
Maturity Schedule Of Federal Home Loan Bank Advances [Line Items] | ||
Debt, Weighted Average Interest Rate | 1.28% | 1.43% |
FHLBB borrowings | ||
Maturity Schedule Of Federal Home Loan Bank Advances [Line Items] | ||
Debt, Weighted Average Interest Rate | 1.87% | 1.87% |
FHLBB borrowings | Long-term Debt [Member] | ||
Maturity Schedule Of Federal Home Loan Bank Advances [Line Items] | ||
Debt, Weighted Average Interest Rate | 1.87% | 1.87% |
FHLBB borrowings | Long-term Debt [Member] | ||
Maturity Schedule Of Federal Home Loan Bank Advances [Line Items] | ||
Long-term Federal Home Loan Bank Advances | $ 10,000 | $ 10,000 |
FHLBB borrowings | Short-term Debt | ||
Maturity Schedule Of Federal Home Loan Bank Advances [Line Items] | ||
FHLBB borrowings | $ 25,000 | $ 25,000 |
Debt, Weighted Average Interest Rate | 1.79% | 2.71% |
FHLBB Borrowing Maturing February 2020 | ||
Maturity Schedule Of Federal Home Loan Bank Advances [Line Items] | ||
Federal Home Loan Bank Advances | $ 10,000 | |
FHLBB Borrowing Maturing January 2020 | ||
Maturity Schedule Of Federal Home Loan Bank Advances [Line Items] | ||
Federal Home Loan Bank Advances | $ 30,825 |
Borrowings (Subordinated Debent
Borrowings (Subordinated Debentures) (Details) - USD ($) | Oct. 08, 2015 | Apr. 30, 2006 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2006 | Dec. 31, 2008 |
Debt Instrument [Line Items] | |||||||
Subordinated Debt | $ 15,000,000 | $ 59,080,000 | $ 59,067,000 | ||||
Subordinated Borrowing, Interest Rate | 5.50% | ||||||
Debt Instrument, Term | 10 years | ||||||
Debt Instrument, Frequency of Periodic Payment | semi-annually | ||||||
Debt Instrument, Maturity Date | Oct. 15, 2020 | ||||||
Debt Instrument, Call Date, Earliest | Oct. 15, 2025 | ||||||
Debt Issuance Cost | $ 115,000 | 54,000 | |||||
Value Of Trust Preferred Securities Included In Tier 1 Capital | $ 43,000,000 | 43,000,000 | 43,000,000 | ||||
Interest Expense, Junior Subordinated Debentures | 3,266,000 | $ 3,415,000 | $ 3,408,000 | ||||
Junior Subordinated Debt | |||||||
Debt Instrument [Line Items] | |||||||
Value Of Trust Preferred Securities Included In Tier 1 Capital | $ 43,000,000 | ||||||
Percentage of trust preferred securities included in Tier I Capital ratio | 10.30% | ||||||
Junior Subordinated Debt | Subsidiary One [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from issuance of trust preferred securities | $ 36,100,000 | ||||||
Value of outstanding common shares of subsidiary owned by company | $ 1,100,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.36% | 4.20% | |||||
Debt Instrument, Interest Rate Terms | The contract interest rate of the trust preferred securities is three-month LIBOR plus 140 basis points. | ||||||
Debt interest rate, additional rate over three month LIBOR | 1.40% | ||||||
Junior Subordinated Debt | Subsidiary Two [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Term | 30 years | ||||||
Value of outstanding common shares of subsidiary owned by company | $ 248,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.41% | 3.86% | |||||
Debt Instrument, Interest Rate Terms | The contract interest rate of the trust preferred securities is the average three-month LIBOR plus 1.42%. | ||||||
Trust preferred securities assumed in acquisition | $ 8,000,000 | ||||||
Debt interest rate, additional rate over three month LIBOR | 1.42% | ||||||
Aggregate amount of junior subordinated debt issued to subsidiary by acquired company, prior to acquisition | $ 8,200,000 | ||||||
Debt instrument fixed rate | 6.4725% | ||||||
interest rate multiplier applied to variable rate | 50.00% | ||||||
interest rate multiplier applied to fixed rate | 50.00% | ||||||
Interest rate swaps | |||||||
Debt Instrument [Line Items] | |||||||
Notional amount of derivative | $ 43,000,000 | $ 43,000,000 |
Repurchase Agreements (Details)
Repurchase Agreements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets Sold under Agreements to Repurchase [Line Items] | |||
Securities Sold under Agreements to Repurchase | $ 237,984 | $ 245,868 | |
Certificates of Deposit, at Carrying Value | 1,000 | 923 | |
Retail [Member] | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Securities Sold under Agreements to Repurchase | [1],[2] | 237,984 | 245,868 |
Retail [Member] | Obligations of states and political subdivisions | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Securities Sold under Agreements to Repurchase | [1],[2] | 1,361 | 1,455 |
Retail [Member] | Mortgage-backed securities issued or guaranteed by U.S. government sponsored enterprises [Member] | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Securities Sold under Agreements to Repurchase | [1],[2] | 117,654 | 125,590 |
Retail [Member] | Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Securities Sold under Agreements to Repurchase | [1],[2] | $ 118,969 | $ 118,823 |
[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 and Contingencies_2
Commitments and Contingencies (Additional Information) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Legal Proceedings [Line Items] | ||
Unconditionally cancellable commitments to extend credit | $ 739,860,000 | $ 657,638,000 |
Loss Contingency Accrual | 0 | 0 |
Cancellable Commitment [Member] | ||
Legal Proceedings [Line Items] | ||
Unconditionally cancellable commitments to extend credit | $ 274,600,000 | $ 270,800,000 |
Commitments and Contingencies_3
Commitments and Contingencies (Summary of Contractual and Notional Amounts of Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Instruments [Line Items] | ||
Contractual Amounts Of Financial Instrument | $ 739,860 | $ 657,638 |
Commitments to Extend Credit [Member] | ||
Financial Instruments [Line Items] | ||
Contractual Amounts Of Financial Instrument | 734,649 | 654,575 |
Standby Letters of Credit [Member] | ||
Financial Instruments [Line Items] | ||
Contractual Amounts Of Financial Instrument | $ 5,211 | $ 3,063 |
Derivatives and Hedging Deriv_3
Derivatives and Hedging Derivatives and Hedging (Additional Information) (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)derivative | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Other Commitments [Line Items] | |||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | $ 833,000 | ||
Derivative, Number of Interest Rate Swap Agreements | derivative | 2 | ||
Unrealized Gain (Loss) on Derivatives | $ (61,000) | $ 89,000 | |
Customer Loan Swaps [Member] | |||
Other Commitments [Line Items] | |||
Restricted Cash and Cash Equivalents | 18,400,000 | 5,100,000 | |
Interest Rate Lock Commitments [Member] | |||
Other Commitments [Line Items] | |||
Unrealized Gain (Loss) on Derivatives | 395,000 | (218,000) | $ 98,000 |
Derivative, Notional Amount | 29,606,000 | 12,077,000 | |
Forward Contracts [Member] | |||
Other Commitments [Line Items] | |||
Unrealized Gain (Loss) on Derivatives | 282,000 | (127,000) | (136,000) |
Derivative, Notional Amount | 11,915,000 | 4,315,000 | |
Interest Rate Swap On Loans [Member] | |||
Other Commitments [Line Items] | |||
Loss on Cash Flow Hedge Ineffectiveness | 0 | ||
Derivative Instrument Payment Of Interest Rate Swaps Designated As Cash Flow Hedges | 214,000 | ||
Restricted Cash and Cash Equivalents | 560,000 | ||
Derivative, Notional Amount | 100,000,000 | ||
Interest Rate Swap [Member] | |||
Other Commitments [Line Items] | |||
Loss on Cash Flow Hedge Ineffectiveness | 0 | 0 | 0 |
Derivative Instrument Payment Of Interest Rate Swaps Designated As Cash Flow Hedges | 738,000 | 889,000 | $ 1,300,000 |
Derivative, Notional Amount | 43,000,000 | 43,000,000 | |
Forward-Starting Interest Rate Swap [Member] | |||
Other Commitments [Line Items] | |||
Derivative Instrument Payment Of Interest Rate Swaps Designated As Cash Flow Hedges | 58,000 | ||
Derivative, Notional Amount | 25,000,000 | ||
Other Assets [Member] | Interest Rate Lock Commitments [Member] | |||
Other Commitments [Line Items] | |||
Derivative, Notional Amount | 27,087,000 | 8,239,000 | |
Other Assets [Member] | Forward Contracts [Member] | |||
Other Commitments [Line Items] | |||
Derivative, Notional Amount | 10,846,000 | 2,593,000 | |
Other Assets [Member] | Interest Rate Swap [Member] | |||
Other Commitments [Line Items] | |||
Restricted Cash and Cash Equivalents | 8,800,000 | 5,800,000 | |
Contract Two [Member] | Interest Rate Swap [Member] | |||
Other Commitments [Line Items] | |||
Derivative, Notional Amount | 10,000,000 | 10,000,000 | |
Contract Two [Member] | Forward-Starting Interest Rate Swap [Member] | |||
Other Commitments [Line Items] | |||
Derivative, Notional Amount | $ 0 | $ 25,000,000 |
Derivatives and Hedging Deriv_4
Derivatives and Hedging Derivatives and Hedging (Schedule of customer loan swaps) (Details) - Interest Rate Swap [Member] $ in Thousands | Dec. 31, 2019USD ($)derivative | Dec. 31, 2018USD ($)derivative |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 43,000 | $ 43,000 |
Derivative, Fair Value, Net | $ (8,187) | $ (5,682) |
federal home loan bank 30-day [Member] | ||
Derivative [Line Items] | ||
Derivative, Number of Instruments Held | derivative | 75 | 25 |
Derivative, Notional Amount | $ 366,351 | $ 118,891 |
Derivative, Fair Value, Net | $ 17,756 | $ 3,467 |
Other Liabilities [Member] | federal home loan bank 30-day [Member] | ||
Derivative [Line Items] | ||
Derivative, Number of Instruments Held | derivative | 10 | 57 |
Derivative, Notional Amount | $ 45,243 | $ 297,624 |
Derivative, Fair Value, Net | $ (514) | $ (7,841) |
Commercial and Industrial Sector [Member] | ||
Derivative [Line Items] | ||
Derivative, Number of Instruments Held | derivative | 85 | 82 |
Derivative, Notional Amount | $ 411,594 | $ 416,515 |
Derivative, Fair Value, Net | $ (17,242) | $ 4,374 |
Loans [Member] | ||
Derivative [Line Items] | ||
Derivative, Number of Instruments Held | derivative | 170 | 164 |
Derivative, Notional Amount | $ 823,188 | $ 833,030 |
Derivative, Fair Value, Net | $ 0 | $ 0 |
Derivatives and Hedging Deriv_5
Derivatives and Hedging Derivatives and Hedging (Schedule of interest rate lock commitments) (Details) - Interest Rate Lock Commitments [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 29,606 | $ 12,077 |
Derivative, Fair Value, Net | 462 | 67 |
Other Assets [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 27,087 | 8,239 |
Derivative Asset, Fair Value, Gross Asset | 480 | 95 |
Other Liabilities [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 2,519 | 3,838 |
Derivative Liability, Fair Value, Gross Liability | $ (18) | $ (28) |
Derivatives and Hedging Deriv_6
Derivatives and Hedging Derivatives and Hedging (Schedule of forward delivery commitments) (Details) - Forward Contracts [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 11,915 | $ 4,315 |
Derivative Asset, Fair Value, Gross Asset | 312 | 32 |
Derivative Liability, Fair Value, Gross Liability | (15) | (17) |
Derivative, Fair Value, Net | 297 | 15 |
Other Assets [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 10,846 | 2,593 |
Other Liabilities [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 1,069 | $ 1,722 |
Derivatives and Hedging Deriv_7
Derivatives and Hedging Derivatives and Hedging (Schedule of interest rate swap on loans) (Details) - Interest Rate Swap On Loans [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Derivative [Line Items] | |
Derivative, Inception Date | Jun. 12, 2019 |
Derivative, Maturity Date | Jun. 10, 2024 |
Derivative, Fixed Interest Rate | 1.693% |
Derivative, Notional Amount | $ 100,000 |
Derivative, Fair Value, Net | $ 483 |
Derivatives and Hedging Deriv_8
Derivatives and Hedging Derivatives and Hedging (Schedule of junior suboridnated debt interest rate swap) (Details) - Interest Rate Swap [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 43,000 | $ 43,000 |
Derivative, Fair Value, Net | $ (8,187) | (5,682) |
Contract One [Member] | ||
Derivative [Line Items] | ||
Derivative, Inception Date | Mar. 18, 2009 | |
Derivative, Maturity Date | Jun. 30, 2021 | |
Derivative, Fixed Interest Rate | 5.09% | |
Derivative, Notional Amount | $ 10,000 | 10,000 |
Derivative, Fair Value, Net | $ (299) | (272) |
Contract Two [Member] | ||
Derivative [Line Items] | ||
Derivative, Inception Date | Jul. 8, 2009 | |
Derivative, Maturity Date | Jun. 30, 2029 | |
Derivative, Fixed Interest Rate | 5.84% | |
Derivative, Notional Amount | $ 10,000 | 10,000 |
Derivative, Fair Value, Net | $ (2,318) | (1,655) |
Contract Three [Member] | ||
Derivative [Line Items] | ||
Derivative, Inception Date | May 6, 2010 | |
Derivative, Maturity Date | Jun. 30, 2030 | |
Derivative, Fixed Interest Rate | 5.71% | |
Derivative, Notional Amount | $ 10,000 | 10,000 |
Derivative, Fair Value, Net | $ (2,384) | (1,636) |
Contract Four [Member] | ||
Derivative [Line Items] | ||
Derivative, Inception Date | Mar. 14, 2011 | |
Derivative, Maturity Date | Mar. 30, 2031 | |
Derivative, Fixed Interest Rate | 4.35% | |
Derivative, Notional Amount | $ 5,000 | 5,000 |
Derivative, Fair Value, Net | $ (1,279) | (877) |
Contract Five [Member] | ||
Derivative [Line Items] | ||
Derivative, Inception Date | May 4, 2011 | |
Derivative, Maturity Date | Jul. 7, 2031 | |
Derivative, Fixed Interest Rate | 4.14% | |
Derivative, Notional Amount | $ 8,000 | 8,000 |
Derivative, Fair Value, Net | $ (1,907) | $ (1,242) |
Derivatives and Hedging Deriv_9
Derivatives and Hedging Derivatives and Hedging (Schedule of FHLBB advance interest rate swaps) (Details) - Forward-Starting Interest Rate Swap [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 25,000 | |
Contract Two [Member] | ||
Derivative [Line Items] | ||
Derivative, Inception Date | Feb. 25, 2015 | |
Derivative, Maturity Date | Feb. 25, 2019 | |
Derivative, Fixed Interest Rate | 1.74% | |
Derivative, Notional Amount | $ 0 | $ 25,000 |
Derivative, Fair Value, Net | $ 0 | $ 30 |
Derivatives and Hedging Deri_10
Derivatives and Hedging Derivatives and Hedging (Schedule of derivative effects on OCI) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ (2,334) | $ 837 | $ (248) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 921 | $ 831 | $ 1,592 |
Balance Sheet Offsetting (Detai
Balance Sheet Offsetting (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Offsetting Assets [Line Items] | |||
Derivative Asset, Not Offset | [1],[2] | $ 0 | $ 0 |
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Gross | 18,239 | 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 | 18,239 | 7,871 | |
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Not Offset, Policy Election Deduction | [1] | 0 | 0 |
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Collateral, Obligation to Return Cash | [1] | (483) | (4,404) |
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Amount Offset Against Collateral | 17,756 | 3,467 | |
Derivative Liability, Not Offset | [1],[2] | 0 | 0 |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Gross | 25,943 | 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 | 25,943 | 13,523 | |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Not Offset, Policy Election Deduction | [1] | 0 | 0 |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Collateral, Right to Reclaim Cash | [1] | 25,429 | 5,682 |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Amount Offset Against Collateral | 514 | 7,841 | |
Securities Sold under Agreements to Repurchase, Gross | 237,984 | 245,868 | |
Securities Sold under Agreements to Repurchase, Asset | 0 | 0 | |
Securities Sold under Agreements to Repurchase | 237,984 | 245,868 | |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Collateral, Right to Reclaim Securities | [1] | 237,984 | 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 | |||
Offsetting Assets [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 17,242 | 4,374 | |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 | |
Derivative Asset | 17,242 | 4,374 | |
Derivative, Collateral, Obligation to Return Cash | [1] | 17,242 | (4,374) |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 | |
Customer Loan Swap - Commercial Customer | |||
Offsetting Assets [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | [2] | 17,756 | 3,467 |
Derivative Asset, Fair Value, Gross Liability | [2] | 0 | 0 |
Derivative Asset | [2] | 17,756 | 3,467 |
Derivative, Collateral, Obligation to Return Cash | [1],[2] | 0 | 0 |
Derivative, Collateral, Obligation to Return Cash | [2] | 17,756 | 3,467 |
Derivative Liability, Fair Value, Gross Liability | [2] | 514 | 7,841 |
Derivative Liability, Fair Value, Gross Asset | [2] | 0 | 0 |
Derivative Liability | [2] | 514 | 7,841 |
Derivative, Collateral, Right to Reclaim Cash | [1],[2] | 0 | 0 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | [2] | 514 | 7,841 |
Interest Rate Swap On Loans [Member] | |||
Offsetting Assets [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | 483 | ||
Derivative Asset, Fair Value, Gross Liability | 0 | ||
Derivative Asset | 483 | ||
Derivative, Collateral, Obligation to Return Cash | [1] | (483) | |
Derivative, Collateral, Obligation to Return Cash | 0 | ||
FHLBB Advance Interest Rate Swap | |||
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, Collateral, Obligation to Return Cash | 0 | ||
Junior Subordinated Debt Interest Rate Swap | |||
Offsetting Assets [Line Items] | |||
Derivative Liability, Fair Value, Gross Liability | 8,187 | 5,682 | |
Derivative Liability, Fair Value, Gross Asset | 0 | 0 | |
Derivative Liability | 8,187 | 5,682 | |
Derivative, Collateral, Right to Reclaim Cash | [1] | 8,187 | 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. | ||
[2] | (2)The Company manages its net exposure on its commercial customer loan swaps by obtaining collateral as part of the normal loan policy and underwriting practices. |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 08, 2015 |
Total risk-based capital: | |||
Actual Regulatory Capital - Amount | $ 455,702 | $ 434,331 | |
Capital To Risk Weighted Assets | 0.00% | 0.00% | |
Minimum Requirement for capital Adequacy Including Capital Buffer Total Risk-Based Capital Ratio | 10.50% | ||
Minimum Regulatory Capital Required - Ratio | 9.875% | ||
Tier 1 capital: | |||
Actual Regulatory Capital - Amount | $ 415,511 | $ 394,597 | |
Actual Regulatory Capital - Ratio | 0.00% | 0.00% | |
Minimum Requirement for capital Adequacy Including Capital Buffer Tier I Risk-Based Capital Ratio | 8.50% | ||
Minimum Regulatory Capital Required - Ratio | 7.875% | ||
Common equity tier I capital | $ 372,511 | $ 351,597 | |
Tier 1 leverage capital ratio: | |||
Actual Regulatory Capital - Amount | $ 415,511 | $ 394,597 | |
Actual Regulatory Capital - Ratio | 0.00% | 0.00% | |
Minimum Regulatory Capital Required - Ratio | 4.00% | 4.00% | |
Common Equity Tier I Risk Based Capital Ratio | 0.00% | 0.00% | |
Minimum Requirement for capital Adequacy Including Capital Buffer Common Equity Tier I Risk-Based Capital Ratio | 7.00% | ||
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.375% | ||
Value Of Trust Preferred Securities Included In Tier 1 Capital | $ 43,000 | $ 43,000 | $ 43,000 |
Subordinated Debt | 59,080 | 59,067 | $ 15,000 |
Subsidiaries [Member] | |||
Total risk-based capital: | |||
Actual Regulatory Capital - Amount | $ 423,540 | $ 398,773 | |
Capital To Risk Weighted Assets | 0.00% | 0.00% | |
Minimum Requirement for capital Adequacy Including Capital Buffer Total Risk-Based Capital Ratio | 10.50% | ||
Minimum Regulatory Capital Required - Ratio | 9.875% | ||
Minimum Regulatory Provision To Be Well Capitalized - Ratio | 10.00% | 10.00% | |
Tier 1 capital: | |||
Actual Regulatory Capital - Amount | $ 398,349 | $ 374,039 | |
Actual Regulatory Capital - Ratio | 0.00% | 0.00% | |
Minimum Requirement for capital Adequacy Including Capital Buffer Tier I Risk-Based Capital Ratio | 8.50% | ||
Minimum Regulatory Capital Required - Ratio | 7.875% | ||
Minimum Regulatory Provision To Be Well Capitalized - Ratio | 8.00% | 8.00% | |
Common equity tier I capital | $ 398,349 | $ 374,039 | |
Tier 1 leverage capital ratio: | |||
Actual Regulatory Capital - Amount | $ 398,349 | $ 374,039 | |
Actual Regulatory Capital - Ratio | 0.00% | 0.00% | |
Minimum Regulatory Capital Required - Ratio | 4.00% | 4.00% | |
Minimum Regulatory Provision To Be Well Capitalized - Ratio | 5.00% | 5.00% | |
Common Equity Tier I Risk Based Capital Ratio | 0.00% | 0.00% | |
Minimum Requirement for capital Adequacy Including Capital Buffer Common Equity Tier I Risk-Based Capital Ratio | 7.00% | ||
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.375% | ||
Common Equity Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 6.50% | 6.50% | |
Tier II Capital [Domain] | |||
Tier 1 leverage capital ratio: | |||
Subordinated Debt | $ 15,000 | $ 15,000 |
Shareholders' Equity (Additiona
Shareholders' Equity (Additional Information) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Jan. 31, 2020shares | Jan. 31, 2019shares | Dec. 31, 2017USD ($) | Oct. 08, 2015USD ($) | Sep. 24, 2013shares | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||
number of years | 2 | ||||||
Dividends declared to shareholders | $ | $ 18,900 | $ 18,000 | $ 14,600 | ||||
Stock repurchased during period, shares | 488,052 | 750 | |||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 1.5 | ||||||
Subordinated Debt | $ | $ 59,080 | $ 59,067 | $ 15,000 | ||||
Value Of Trust Preferred Securities Included In Tier 1 Capital | $ | $ 43,000 | 43,000 | $ 43,000 | ||||
Subordinated Debt, Phase-Out Period, Annual, Percentage | 0.2 | ||||||
Subordinated Debt, Phase-Out Period | 6 years | ||||||
Subsidiaries [Member] | |||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||
Dividends declared to shareholders | $ | $ 36,900 | $ 28,100 | $ 16,800 | ||||
2013 Common Stock Repurchase Program [Member] | |||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||
Stock repurchase program, shares of common stock approved for repurchase | 375,000 | ||||||
Stock repurchased during period, shares | 750 | ||||||
Shares repurchased, average cost per share | $ / shares | $ 26.57 | ||||||
Share Repurchase Program Three [Member] | |||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||
Stock repurchase program, shares of common stock approved for repurchase | 775,000 | ||||||
Stock repurchased during period, shares | 488,052 | ||||||
Shares repurchased, average cost per share | $ / shares | $ 42.61 | ||||||
Share Repurchase Program Four [Member] | |||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||
Stock Repurchase Program, Period in Force | 12 months | ||||||
Tier II Capital [Domain] | |||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||
Subordinated Debt | $ | $ 15,000 | $ 15,000 | |||||
Subsequent Event [Member] | Share Repurchase Program Four [Member] | |||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||
Stock repurchase program, shares of common stock approved for repurchase | 750,000 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
AFS Securities: | |||
Unrealized holdings losses, pre-tax amount | $ 26,743 | $ (10,846) | $ (2,905) |
Unrealized holdings losses, tax (expense) benefit | (5,750) | 2,332 | 1,017 |
Unrealized holdings losses, after-tax amount | 20,993 | (8,514) | (1,888) |
Less: reclassification adjustment for realized losses, pre-tax amount | (105) | (663) | 855 |
Less: reclassification adjustment for realized losses, tax (expense) benefit | 22 | 142 | (299) |
Less: reclassification adjustment for realized losses, after-tax amount | (83) | (521) | 556 |
Net unrealized losses, pre-tax amount | 26,848 | (10,183) | (3,760) |
Net unrealized losses, tax (expense) benefit | (5,772) | 2,190 | 1,316 |
Net unrealized losses, after-tax amount | 21,076 | (7,993) | (2,444) |
Cash Flow Hedges: | |||
Net increase in fair value, pre-tax amount | (2,973) | 1,066 | (382) |
Net increase in fair value, tax (expense) benefit | 639 | (229) | 134 |
Net increase in fair value, after-tax amount | (2,334) | 837 | (248) |
Less: effective portion reclassified into interest expense, pre-tax amount | (921) | (831) | (1,592) |
Less: effective portion reclassified into interest expense, tax (expense) benefit | 198 | 179 | 557 |
Less: effective portion reclassified into interest expense, after-tax amount | (723) | (652) | (1,035) |
Net increase in fair value, pre-tax amount | (2,052) | 1,897 | 1,210 |
Net increase in fair value, tax (expense) benefit | 441 | (408) | (423) |
Net increase in fair value, after-tax amount | (1,611) | 1,489 | 787 |
Postretirement Plans: | |||
Net actuarial loss, pre-tax amount | (1,918) | 1,743 | (2,065) |
Net actuarial loss, tax (expense) benefit | 412 | (375) | 723 |
Net actuarial loss, after-tax amount | (1,506) | 1,368 | (1,342) |
Less: Amortization of net actuarial losses, pre-tax amount | (271) | (613) | (286) |
Less: Amortization of net actuarial losses, tax (expense) benefit | 59 | 131 | 100 |
Less: Amortization of net prior service credits, after-tax amount | (212) | (482) | (186) |
Less: Amortization of net prior service credits, pre-tax amount | 24 | 24 | 24 |
Less: Amortization of net prior service credits, tax (expense) benefit | (5) | (5) | (8) |
Less: Amortization of net prior service credits, after-tax amount | 19 | 19 | 16 |
Net loss on postretirement plans, pre-tax amount | (1,671) | 2,332 | (1,803) |
Net loss on postretirement plans, tax (expense) benefit | 358 | (501) | 631 |
Net (loss) gain on postretirement plans, net of tax | (1,313) | 1,831 | (1,172) |
Other comprehensive income, pre-tax amount | 23,125 | (5,954) | (4,353) |
Other comprehensive income, tax (expense) benefit | (4,973) | 1,281 | 1,524 |
Other comprehensive income (loss) | $ 18,152 | $ (4,673) | $ (2,829) |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Net unrealized gains (losses) on available-for-sale securities, beginning balance | $ (17,826) | $ (10,300) | $ (6,085) |
Net unrealized losses on cash flow hedging derivative instruments, beginning balance | (4,437) | (5,926) | (5,694) |
Net unrecognized losses on postretirement plans, beginning balance | (2,157) | (3,988) | (2,130) |
Accumulated other comprehensive (income) loss, beginning balance | (24,420) | (20,214) | (13,909) |
Net Unrealized Gains (Losses) on AFS Securities | |||
Other comprehensive income (loss) before reclassifications | 20,993 | (8,514) | (1,888) |
Less: Amounts reclassified from AOCI | (83) | (521) | 556 |
Other comprehensive income (loss) | 21,076 | (7,993) | (2,444) |
Net Unrealized Losses on Cash Flow Hedges | |||
Other comprehensive income (loss) before reclassifications | (2,334) | 837 | (248) |
Less: Amounts reclassified from AOCI | (723) | (652) | (1,035) |
Other comprehensive income (loss) | (1,611) | 1,489 | 787 |
Defined Benefit Postretirement Plans | |||
Other comprehensive income (loss) before reclassifications | (1,506) | 1,368 | (1,342) |
Less: Amounts reclassified from AOCI | (193) | (463) | (170) |
Other comprehensive income (loss) | (1,313) | 1,831 | (1,172) |
Accumulated other comprehensive income (loss) | |||
Other comprehensive income (loss) before reclassifications | 17,153 | (6,309) | (3,478) |
Less: Amounts reclassified from AOCI | (999) | (1,636) | (649) |
Other comprehensive income (loss) | 18,152 | (4,673) | (2,829) |
Net unrealized gains (losses) on available-for-sale securities, ending balance | 3,250 | (17,826) | (10,300) |
Net unrealized losses on cash flow hedging derivative instruments, ending balance | (6,048) | (4,437) | (5,926) |
Net unrecognized losses on postretirement plans, ending balance | (3,470) | (2,157) | (3,988) |
Accumulated other comprehensive (income) loss, ending balance | $ (6,268) | (24,420) | (20,214) |
Accounting Standards Update 2018-02 [Member] | |||
Net Unrealized Gains (Losses) on AFS Securities | |||
Less: Amounts reclassified from AOCI | (1,771) | ||
Net Unrealized Losses on Cash Flow Hedges | |||
Less: Amounts reclassified from AOCI | (1,019) | ||
Defined Benefit Postretirement Plans | |||
Less: Amounts reclassified from AOCI | (686) | ||
Accumulated other comprehensive income (loss) | |||
Less: Amounts reclassified from AOCI | $ (3,476) | ||
Accounting Standards Update 2016-01, 2017-12 [Member] | |||
Net Unrealized Gains (Losses) on AFS Securities | |||
Less: Amounts reclassified from AOCI | 467 | ||
Net Unrealized Losses on Cash Flow Hedges | |||
Less: Amounts reclassified from AOCI | 0 | ||
Defined Benefit Postretirement Plans | |||
Less: Amounts reclassified from AOCI | 0 | ||
Accumulated other comprehensive income (loss) | |||
Less: Amounts reclassified from AOCI | $ 467 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Non-interest income within the scope of ASC 606 | $ 28,330 | $ 26,819 | |||||||||
Non-interest income not in scope of ASC 606 | 13,783 | 11,357 | |||||||||
Total non-interest income | $ 11,948 | $ 10,739 | $ 10,037 | $ 9,389 | $ 9,479 | $ 10,392 | $ 9,501 | $ 8,804 | 42,113 | 38,176 | $ 38,599 |
Cash rewards | 554 | 438 | |||||||||
Debit card income | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Non-interest income within the scope of ASC 606 | 9,701 | 9,067 | |||||||||
Service charges on deposit accounts | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Non-interest income within the scope of ASC 606 | 8,393 | 8,253 | |||||||||
Income from fiduciary services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Non-interest income within the scope of ASC 606 | 5,901 | 5,376 | |||||||||
Brokerage and insurance commissions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Non-interest income within the scope of ASC 606 | 2,625 | 2,615 | |||||||||
Other income | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Non-interest income within the scope of ASC 606 | $ 1,710 | $ 1,508 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Additional Information) (Details) - USD ($) | May 01, 2012 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cash used to settle stock based compensation transactions | $ 455,000 | $ 848,000 | $ 902,000 | |
Cash received from exercise of stock options | $ 95,000 | $ 200,000 | 98,000 | |
Performance period | 5 years 4 months | |||
Percentage of total compensation | 4.00% | |||
Stock Option and Incentive Plan 2003 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares of stock reserved and available for issuance | 1,200,000 | |||
Stock Option and Incentive Plan 2012 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation, option granted, contractual life | 10 years | |||
Stock based compensation, vesting period | 5 years | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date fair value of share based awards | $ 0 | $ 8,000 | 0 | |
Share-based compensation | 7,000 | 10,000 | 20,000 | |
Tax benefit from share based compensation | 8,000 | 50,000 | 21,000 | |
Unrecognized compensation cost for nonvested stock options | $ 7,000 | |||
Unrecognized compensation cost, recognition period | 2 years 6 months | |||
Total intrinsic value of options exercised | $ 309,000 | 395,000 | 268,000 | |
Stock Options [Member] | SBM Financial, Inc. [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Tax benefit from share based compensation | 1,000 | 0 | 7,000 | |
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date fair value of share based awards | 657,000 | 887,000 | 808,000 | |
Share-based compensation | 389,000 | 263,000 | 124,000 | |
Tax benefit from share based compensation | 84,000 | 57,000 | 27,000 | |
Unrecognized compensation cost related to nonvested shares | $ 1,258,000 | |||
Granted | 15,138 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date fair value of share based awards | $ 724,000 | 753,000 | 700,000 | |
Share-based compensation | 751,000 | 916,000 | 762,000 | |
Tax benefit from share based compensation | 161,000 | 197,000 | 164,000 | |
Unrecognized compensation cost related to nonvested shares | $ 492,000 | |||
Granted | 16,347 | |||
Management Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date fair value of share based awards | $ 85,000 | 139,000 | 111,000 | |
Share-based compensation | 95,000 | 104,000 | 97,000 | |
Tax benefit from share based compensation | 20,000 | 22,000 | 21,000 | |
Cash received from issuance of share based awards | 250,000 | 232,000 | 180,000 | |
Unrecognized compensation cost related to nonvested shares | $ 57,000 | |||
Granted | 7,741 | |||
Management Stock Purchase Plan [Member] | Interest and Other Liabilities [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cash received from issuance of share based awards | $ 472,000 | 384,000 | ||
Long-Term Performance Share Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation | 532,000 | 291,000 | 370,000 | |
Tax benefit from share based compensation | 114,000 | 63,000 | 80,000 | |
Total intrinsic value of options exercised | $ 624,000 | 663,000 | 697,000 | |
Performance period | 3 years | |||
Unrecognized compensation cost related to nonvested shares | $ 455,000 | |||
Granted | 14,186 | |||
Deferred Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant date fair value of share based awards | $ 153,000 | 155,000 | 118,000 | |
Share-based compensation | 110,000 | 106,000 | 97,000 | |
Tax benefit from share based compensation | $ 24,000 | $ 23,000 | $ 21,000 | |
Percentage of total compensation | 10.00% | |||
Percentage vested on 65th birthday | 100.00% | |||
Qualified Stock Options [Member] | Stock Option and Incentive Plan 2012 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price as a percentage of fair market value on the date of grant | 100.00% | |||
Nonqualified Stock Options [Member] | Stock Option and Incentive Plan 2012 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price as a percentage of fair market value on the date of grant | 85.00% |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans (Schedule of Option Pricing Assumptions and Estimated Fair Value) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Weighted-average dividend yield | 2.36% | |
Weighted-average risk-free interest rate | 2.38% | |
Weighted-average expected volatility | 22.80% | |
Weighted-average expected life (in years) | 5 years 4 months | |
Weighted-average fair value of options granted | $ 0 | $ 7.78 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans (Schedule of Stock Option Activity) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Number of Shares | |
Options outstanding, beginning | shares | 27,352 |
Granted | shares | 0 |
Exercised | shares | (13,745) |
Forfeited | shares | 0 |
Expired | shares | 0 |
Options outstanding, ending | shares | 13,607 |
Options exercisable | shares | 11,757 |
Weighted Average Exercise Price Per Share | |
Options outstanding, beginning | $ / shares | $ 22.53 |
Granted | $ / shares | 0 |
Exercised | $ / shares | 21.39 |
Forfeited | $ / shares | 0 |
Expired | $ / shares | 0 |
Options outstanding, ending | $ / shares | 23.69 |
Options exercisable | $ / shares | $ 22.21 |
Weighted- Average Remaining Contractual Term | |
Options outstanding | 3 years 3 months 15 days |
Options exercisable | 2 years 9 months 25 days |
Aggregate Intrinsic Value | |
Options outstanding | $ | $ 304 |
Options exercisable | $ | $ 280 |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans (Summary of Nonvested Stock Options) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Awards | ||
Nonvested, beginning | 3,100 | |
Granted | 0 | |
Vested | (1,250) | |
Forfeited | 0 | |
Nonvested, ending | 1,850 | 3,100 |
Weighted- Average Grant Date Fair Value | ||
Nonvested, beginning | $ 6.32 | |
Granted | 0 | $ 7.78 |
Vested | 6.09 | |
Forfeited | 0 | |
Nonvested, ending | $ 6.48 | $ 6.32 |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans (Schedule of Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock Units (RSUs) [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense(1) | $ 389 | $ 263 | $ 124 |
Income tax benefit | 84 | 57 | 27 |
Fair value of grants vested | 302 | 149 | 0 |
Restricted Stock [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense(1) | 751 | 916 | 762 |
Income tax benefit | 161 | 197 | 164 |
Fair value of grants vested | 780 | 931 | 702 |
Management Stock Purchase Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense(1) | 95 | 104 | 97 |
Income tax benefit | 20 | 22 | 21 |
Fair value of grants vested | 75 | 130 | 91 |
Performance Shares [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense(1) | 532 | 291 | 370 |
Income tax benefit | 114 | 63 | 80 |
Fair value of grants vested | 344 | 284 | 843 |
Deferred Stock Awards [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Compensation expense(1) | 110 | 106 | 97 |
Income tax benefit | 24 | 23 | 21 |
Fair value of grants vested | $ 102 | $ 105 | $ 90 |
Stock-Based Compensation Plan_7
Stock-Based Compensation Plans (Summary of Activity Related to Share Based Awards) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Restricted Stock Units (RSUs) [Member] | |
Number of Shares | |
Nonvested, beginning | shares | 30,225 |
Granted | shares | 15,138 |
Vested | shares | (6,854) |
Forfeited | shares | (2,457) |
Nonvested, ending | shares | 36,052 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning | $ / shares | $ 44.23 |
Granted | $ / shares | 43.40 |
Vested | $ / shares | 44.12 |
Forfeited | $ / shares | 43.99 |
Nonvested, ending | $ / shares | $ 43.92 |
Weighted-Average Remaining Contractual Term (Years) | |
Nonvested, weighted average remaining contractual term | 3 years 3 months 30 days |
Aggregate Intrinsic Value | |
Nonvested, aggregate intrinsic value | $ | $ 1,661 |
Unrecognized Compensation | |
Nonvested, unrecognized compensation | $ | $ 1,258 |
Restricted Stock [Member] | |
Number of Shares | |
Nonvested, beginning | shares | 22,781 |
Granted | shares | 16,347 |
Vested | shares | (19,420) |
Forfeited | shares | (421) |
Nonvested, ending | shares | 19,287 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning | $ / shares | $ 38.21 |
Granted | $ / shares | 44.30 |
Vested | $ / shares | 40.16 |
Forfeited | $ / shares | 27.20 |
Nonvested, ending | $ / shares | $ 41.66 |
Weighted-Average Remaining Contractual Term (Years) | |
Nonvested, weighted average remaining contractual term | 1 year 7 months |
Aggregate Intrinsic Value | |
Nonvested, aggregate intrinsic value | $ | $ 888 |
Unrecognized Compensation | |
Nonvested, unrecognized compensation | $ | $ 492 |
Management Stock Purchase Plan [Member] | |
Number of Shares | |
Nonvested, beginning | shares | 13,013 |
Granted | shares | 7,741 |
Vested | shares | (5,516) |
Forfeited | shares | (223) |
Nonvested, ending | shares | 15,015 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning | $ / shares | $ 14.35 |
Granted | $ / shares | 11.01 |
Vested | $ / shares | 13.65 |
Forfeited | $ / shares | 14.23 |
Nonvested, ending | $ / shares | $ 12.89 |
Weighted-Average Remaining Contractual Term (Years) | |
Nonvested, weighted average remaining contractual term | 8 months |
Aggregate Intrinsic Value | |
Nonvested, aggregate intrinsic value | $ | $ 219 |
Unrecognized Compensation | |
Nonvested, unrecognized compensation | $ | $ 57 |
Performance Shares [Member] | |
Number of Shares | |
Nonvested, beginning | shares | 26,377 |
Granted | shares | 14,186 |
Vested | shares | (7,811) |
Forfeited | shares | (4,987) |
Nonvested, ending | shares | 27,765 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning | $ / shares | $ 44.28 |
Granted | $ / shares | 43.98 |
Vested | $ / shares | 43.99 |
Forfeited | $ / shares | 43.99 |
Nonvested, ending | $ / shares | $ 44.26 |
Weighted-Average Remaining Contractual Term (Years) | |
Nonvested, weighted average remaining contractual term | 1 year 7 months 12 days |
Aggregate Intrinsic Value | |
Nonvested, aggregate intrinsic value | $ | $ 1,279 |
Unrecognized Compensation | |
Nonvested, unrecognized compensation | $ | $ 455 |
DCRP Awards [Member] | |
Number of Shares | |
Nonvested, beginning | shares | 9,970 |
Granted | shares | 3,542 |
Vested | shares | (2,861) |
Forfeited | shares | 0 |
Nonvested, ending | shares | 10,651 |
Weighted Average Grant Date Fair Value | |
Nonvested, beginning | $ / shares | $ 28.16 |
Granted | $ / shares | 43.26 |
Vested | $ / shares | 35.74 |
Forfeited | $ / shares | 0 |
Nonvested, ending | $ / shares | $ 31.14 |
Weighted-Average Remaining Contractual Term (Years) | |
Nonvested, weighted average remaining contractual term | 10 years 3 months 12 days |
Aggregate Intrinsic Value | |
Nonvested, aggregate intrinsic value | $ | $ 491 |
Unrecognized Compensation | |
Nonvested, unrecognized compensation | $ | $ 255 |
Employee Benefit Plans (Additio
Employee Benefit Plans (Additional Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2020 | |
401(k)/Profit Sharing Plan | ||||
Contribution match, as a percentage of annual pay | 4.00% | |||
Contribution matches, percentage of pre-tax compensation | 3.00% | 3.00% | 3.00% | |
Expenses under the 401(K)/Profit Sharing plan | $ 2,400 | $ 2,300 | $ 2,300 | |
Supplemental Executive Retirement Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Minimum guaranteed benefit term | 15 years | |||
Accumulated benefit obligation | $ 14,200 | $ 12,100 | ||
Other Postretirement Benefits Plan [Member] | Minimum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Health care cost trend rate assumed for future years | 4.50% | 5.00% | 5.00% | |
Other Postretirement Benefits Plan [Member] | Maximum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Health care cost trend rate assumed for future years | 7.00% | 6.00% | 6.00% | |
Scenario, Forecast | Supplemental Executive Retirement Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected amortization of net actuarial loss | $ 623 | |||
Scenario, Forecast | Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected amortization of net actuarial loss | 78,000 | |||
Expected amortization of prior service cost | $ 24 |
Employee Benefit Plans (Schedul
Employee Benefit Plans (Schedule of Changes in Benefit Obligation and Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Amounts recognized in accumulated other comprehensive loss | |||||
Total | $ 3,470 | $ 2,157 | $ 3,988 | $ 2,130 | |
Supplemental Executive Retirement Plan [Member] | |||||
Benefit obligations: | |||||
Beginning of year | 12,717 | 13,790 | |||
Service cost | [1] | 395 | 446 | 335 | |
Interest cost | [2] | 523 | 488 | 452 | |
Actuarial loss (gain) | 1,524 | (1,534) | |||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 477 | 473 | |||
End of year | 14,682 | 12,717 | 13,790 | ||
Fair value of plan assets: | |||||
Beginning of year | 0 | 0 | |||
Employer contributions | 477 | 473 | |||
Defined Benefit Plan, Plan Assets, Benefits Paid | 477 | 473 | |||
End of year | 0 | 0 | 0 | ||
Unfunded status at end of year(1) | [3] | 14,682 | 12,717 | ||
Amounts recognized in accumulated other comprehensive loss | |||||
Net actuarial loss | 2,864 | 1,859 | |||
Total | 2,864 | 1,859 | |||
Other Postretirement Benefits Plan [Member] | |||||
Benefit obligations: | |||||
Beginning of year | 3,616 | 3,791 | |||
Service cost | [1] | 48 | 46 | 53 | |
Interest cost | [2] | 148 | 132 | 144 | |
Actuarial loss (gain) | 394 | (209) | |||
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 157 | 144 | |||
End of year | 4,049 | 3,616 | 3,791 | ||
Fair value of plan assets: | |||||
Beginning of year | 0 | 0 | |||
Employer contributions | 157 | 144 | |||
Defined Benefit Plan, Plan Assets, Benefits Paid | 157 | 144 | |||
End of year | 0 | 0 | $ 0 | ||
Unfunded status at end of year(1) | [3] | 4,049 | 3,616 | ||
Amounts recognized in accumulated other comprehensive loss | |||||
Net actuarial loss | 738 | 449 | |||
Prior service credit | (132) | (151) | |||
Total | $ 606 | $ 298 | |||
[1] | (1)Presented in salaries and employee benefits on the consolidated statements of income. | ||||
[2] | (2)Presented in other expenses on the consolidated statements of income. | ||||
[3] | 1)Presented within other liabilities on the consolidated statements of condition. |
Employee Benefit Plans (Sched_2
Employee Benefit Plans (Schedule of Net Period Benefit Cost and Other Amounts Recognized in Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Changes in funded status recognized in other comprehensive loss, before taxes | ||||
Total recognized in OCI, before taxes | $ 1,671 | $ (2,332) | $ 1,803 | |
Supplemental Executive Retirement Plan [Member] | ||||
Net period benefit cost | ||||
Service cost | [1] | 395 | 446 | 335 |
Interest cost | [2] | 523 | 488 | 452 |
Recognized net actuarial loss(2) | [2] | 240 | 561 | 246 |
Net periodic benefit cost | 1,158 | 1,495 | 1,033 | |
Changes in funded status recognized in other comprehensive loss, before taxes | ||||
Net actuarial loss (gain) arising during period | 1,524 | (1,534) | 1,955 | |
Amortization of net unrecognized actuarial loss | (240) | (561) | (246) | |
Total recognized in OCI, before taxes | 1,284 | (2,095) | 1,709 | |
Total recognized in net periodic benefit cost and OCI, before taxes | 2,442 | (600) | 2,742 | |
Other Postretirement Benefits Plan [Member] | ||||
Net period benefit cost | ||||
Service cost | [1] | 48 | 46 | 53 |
Interest cost | [2] | 148 | 132 | 144 |
Recognized net actuarial loss(2) | [2] | 31 | 52 | 40 |
Amortization of prior service credit(2) | [2] | (24) | (24) | (24) |
Net periodic benefit cost | 203 | 206 | 213 | |
Changes in funded status recognized in other comprehensive loss, before taxes | ||||
Net actuarial loss (gain) arising during period | 394 | (209) | 110 | |
Amortization of net unrecognized actuarial loss | (31) | (52) | (40) | |
Amortization of prior service credit | 24 | 24 | 24 | |
Total recognized in OCI, before taxes | 387 | (237) | 94 | |
Total recognized in net periodic benefit cost and OCI, before taxes | $ 590 | $ (31) | $ 307 | |
[1] | (1)Presented in salaries and employee benefits on the consolidated statements of income. | |||
[2] | (2)Presented in other expenses on the consolidated statements of income. |
Employee Benefit Plans (Sched_3
Employee Benefit Plans (Schedule of Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Executive Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for benefit obligation | 3.20% | 4.20% | 3.60% |
Discount rate for net periodic benefit cost | 4.20% | 3.60% | 4.00% |
Rate of compensation increase for benefit obligation | 3.00% | 3.00% | 5.00% |
Rate of compensation increase for net periodic benefit cost | 3.00% | 3.00% | 5.00% |
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate for benefit obligation | 3.20% | 4.20% | 3.60% |
Discount rate for net periodic benefit cost | 4.20% | 3.60% | 4.00% |
Employee Benefit Plans (Sched_4
Employee Benefit Plans (Schedule of Estimated Future Benefit Payments) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Supplemental Executive Retirement Plan [Member] | |
Expected future benefit payments under the plans: | |
2017 | $ 486 |
2018 | 536 |
2019 | 566 |
2020 | 526 |
2021 | 436 |
2022- 2026 | 2,141 |
Other Postretirement Benefits Plan [Member] | |
Expected future benefit payments under the plans: | |
2017 | 268 |
2018 | 265 |
2019 | 233 |
2020 | 219 |
2021 | 231 |
2022- 2026 | $ 1,084 |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income Tax Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||||||||||
Federal | $ 11,876 | $ 14,102 | $ 14,529 | ||||||||
State | 1,241 | 1,206 | 1,289 | ||||||||
Total | 13,117 | 15,308 | 15,818 | ||||||||
Deferred: | |||||||||||
Change in federal corporate income tax rate(1) | 0 | 0 | 14,263 | ||||||||
Federal | 1,230 | (2,541) | 4,117 | ||||||||
Deferred State and Local Income Tax Expense (Benefit) | 29 | (61) | (320) | ||||||||
Deferred Income Tax Expense (Benefit) | 1,259 | (2,602) | 18,060 | ||||||||
Income tax expense | $ 3,921 | $ 3,696 | $ 3,275 | $ 3,484 | $ 3,502 | $ 3,238 | $ 2,887 | $ 3,079 | $ 14,376 | $ 12,706 | $ 33,878 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Expected Income Tax Benefit Computed Using Federal Statutory Income Tax Rate) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income Tax Disclosure [Abstract] | ||||||||||||
Computed tax expense(1) | [1] | $ 15,032 | $ 13,813 | $ 21,824 | ||||||||
Change in federal corporate income tax rate(1) | [1] | 0 | 0 | 14,263 | ||||||||
Tax exempt income | (738) | (741) | (1,291) | |||||||||
Income from life insurance | (509) | (510) | (829) | |||||||||
State taxes, net of federal benefit | 1,003 | 905 | 630 | |||||||||
Share-based awards | (60) | (250) | (390) | |||||||||
Low income housing credits | (430) | (465) | (366) | |||||||||
Other | 78 | (46) | 37 | |||||||||
Income tax expense | $ 3,921 | $ 3,696 | $ 3,275 | $ 3,484 | $ 3,502 | $ 3,238 | $ 2,887 | $ 3,079 | 14,376 | 12,706 | 33,878 | |
Income before income taxes | $ 19,159 | $ 18,184 | $ 16,479 | $ 17,757 | $ 17,479 | $ 17,295 | $ 15,104 | $ 15,899 | $ 71,579 | $ 65,777 | $ 62,354 | |
Effective tax rate | 20.10% | 19.30% | 54.30% | |||||||||
[1] | (1)On December 22, 2017, the Tax Act was enacted, reducing the U.S. federal corporate income tax rate from 35.0% to 21.0%. The Company recognized the effect of the tax law changes in the period of enactment, which resulted in a reduction to net deferred tax assets and a corresponding charge to income tax expense of $14.3 million. |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Deferred Tax Liabilities) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Asset | ||
Net operating loss and tax credit carryforward | $ 10,421,000 | $ 11,250,000 |
Allowance for loan losses | 5,416,000 | 5,318,000 |
Net unrealized losses on AFS securities | 4,882,000 | |
Deferred Tax Liabilities, Unrealized Gains on Trading Securities | (890,000) | 0 |
Pension and other benefits | 4,492,000 | 3,881,000 |
Net unrealized losses on derivative instruments | 1,656,000 | 1,215,000 |
Deferred compensation and benefits | 919,000 | 927,000 |
Other | 353,000 | |
Total | 22,904,000 | 27,826,000 |
Liability | ||
Depreciation | (3,053,000) | (2,913,000) |
Deferred loan origination fees | (2,119,000) | (1,860,000) |
Other | 19,000 | |
Total | (6,081,000) | (4,773,000) |
Valuation allowance on deferred tax assets | 0 | 0 |
Net deferred tax assets | $ 16,823,000 | $ 23,053,000 |
Income Taxes (Additional Inform
Income Taxes (Additional Information) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 16, 2016 | ||
Income Tax Contingency [Line Items] | |||||
Change in federal corporate income tax rate(1) | [1] | $ 0 | $ 0 | $ 14,263,000 | |
Operating Loss Carryforwards | 48,200,000 | 52,100,000 | |||
Valuation allowance on deferred tax assets | $ 0 | $ 0 | |||
Domestic Tax Authority [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Operating Loss Carryforwards | $ 3,900,000 | ||||
Minimum [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2030 | ||||
Maximum [Member] | |||||
Income Tax Contingency [Line Items] | |||||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2034 | ||||
[1] | (1)On December 22, 2017, the Tax Act was enacted, reducing the U.S. federal corporate income tax rate from 35.0% to 21.0%. The Company recognized the effect of the tax law changes in the period of enactment, which resulted in a reduction to net deferred tax assets and a corresponding charge to income tax expense of $14.3 million. |
EPS (Computation of Basic and D
EPS (Computation of Basic and Diluted Earnings Per Share) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019USD ($)$ / shares | Sep. 30, 2019USD ($)$ / shares | Jun. 30, 2019USD ($)$ / shares | Mar. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($)$ / shares | Sep. 30, 2018USD ($)$ / shares | Jun. 30, 2018USD ($)$ / shares | Mar. 31, 2018USD ($)$ / shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | ||
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | ||||||||||||
Net income | $ | $ 15,238 | $ 14,488 | $ 13,204 | $ 14,273 | $ 13,977 | $ 14,057 | $ 12,217 | $ 12,820 | $ 57,203 | $ 53,071 | $ 28,476 | |
Dividends and undistributed earnings allocated to participating securities(1) | $ | [1] | (120) | (148) | (118) | ||||||||
Net income available to common shareholders | $ | $ 57,083 | $ 52,923 | $ 28,358 | |||||||||
Weighted-average common shares outstanding for basic EPS | 15,407,289 | 15,571,387 | 15,509,665 | |||||||||
Dilutive effect of stock-based awards | [2] | 45,733 | 54,916 | 78,682 | ||||||||
Weighted-average common and potential common shares for diluted EPS | 15,453,022 | 15,626,303 | 15,588,347 | |||||||||
Basic EPS | $ / shares | $ 1 | $ 0.94 | $ 0.85 | $ 0.91 | $ 0.90 | $ 0.90 | $ 0.78 | $ 0.82 | $ 3.70 | $ 3.40 | $ 1.83 | |
Diluted EPS | $ / shares | $ 0.99 | $ 0.94 | $ 0.85 | $ 0.91 | $ 0.89 | $ 0.90 | $ 0.78 | $ 0.82 | $ 3.69 | $ 3.39 | $ 1.82 | |
Shares that were not considered in computation of potential common shares for purposes of diluted EPS | 0 | 0 | 0 | |||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 1.5 | |||||||||||
[1] | Represents dividends paid and undistributed earnings allocated to nonvested stock-based awards that contain non-forfeitable rights to dividends. | |||||||||||
[2] | Represents the effect of the assumed exercise of stock options, vesting of restricted shares and restricted stock units, and issuance of LTIP awards that have met the performance criteria, utilizing the treasury stock method. |
EPS EPS (Additional Information
EPS EPS (Additional Information) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 |
Fair Value (Summary of Financia
Fair Value (Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Held-for-sale | $ 11,854 | $ 4,403 |
Financial Assets: | ||
AFS securities | 918,118 | 910,692 |
Other Investments | 13,649 | 14,679 |
Obligations of states and political subdivisions | ||
Financial Assets: | ||
AFS securities | 118,083 | 93,752 |
Mortgage-backed securities issued or guaranteed by U.S. government sponsored enterprises [Member] | ||
Financial Assets: | ||
AFS securities | 463,386 | 453,672 |
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial Assets: | ||
AFS securities | 325,905 | 342,894 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Held-for-sale | 11,854 | 4,403 |
Financial Liabilities: | ||
Junior subordinated debt interest rate swaps | 8,187 | 5,682 |
Fair Value, Measurements, Recurring [Member] | Obligations of states and political subdivisions | ||
Financial Assets: | ||
AFS securities | 118,083 | |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities issued or guaranteed by U.S. government sponsored enterprises [Member] | ||
Financial Assets: | ||
AFS securities | 463,386 | 93,752 |
Fair Value, Measurements, Recurring [Member] | Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial Assets: | ||
AFS securities | 325,905 | 453,672 |
Fair Value, Measurements, Recurring [Member] | Corporate Bond Securities [Member] | ||
Financial Assets: | ||
AFS securities | 10,744 | 342,894 |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | ||
Financial Assets: | ||
AFS securities | 20,374 | |
Other Investments | 1,674 | |
Readily Available Market Prices (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Held-for-sale | 0 | 0 |
Readily Available Market Prices (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Bond Securities [Member] | ||
Financial Assets: | ||
AFS securities | 0 | 0 |
Readily Available Market Prices (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | ||
Financial Assets: | ||
AFS securities | 0 | 0 |
Observable Market Data (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Held-for-sale | 11,854 | 4,403 |
Financial Liabilities: | ||
Junior subordinated debt interest rate swaps | 8,187 | 5,682 |
Observable Market Data (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Obligations of states and political subdivisions | ||
Financial Assets: | ||
AFS securities | 118,083 | |
Observable Market Data (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities issued or guaranteed by U.S. government sponsored enterprises [Member] | ||
Financial Assets: | ||
AFS securities | 463,386 | 93,752 |
Observable Market Data (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial Assets: | ||
AFS securities | 325,905 | 453,672 |
Observable Market Data (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Bond Securities [Member] | ||
Financial Assets: | ||
AFS securities | 10,744 | 342,894 |
Observable Market Data (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | ||
Financial Assets: | ||
AFS securities | 20,374 | |
Other Investments | 1,674 | |
Company Determined Fair Value (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans Held-for-sale | 0 | 0 |
Company Determined Fair Value (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Bond Securities [Member] | ||
Financial Assets: | ||
AFS securities | 0 | 0 |
Company Determined Fair Value (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | ||
Financial Assets: | ||
AFS securities | 0 | 0 |
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Customer interest rate swaps | 17,756 | 7,841 |
Financial Liabilities: | ||
Customer interest rate swaps | 17,756 | 7,841 |
Interest Rate Swap [Member] | Observable Market Data (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Customer interest rate swaps | 17,756 | 7,841 |
Financial Liabilities: | ||
Customer interest rate swaps | 17,756 | 7,841 |
Interest Rate Lock Commitments [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Customer interest rate swaps | 480 | 95 |
Financial Liabilities: | ||
Customer interest rate swaps | 18 | 28 |
Interest Rate Lock Commitments [Member] | Observable Market Data (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Customer interest rate swaps | 480 | 95 |
Financial Liabilities: | ||
Customer interest rate swaps | 18 | 28 |
Interest Rate Lock Commitments [Member] | Company Determined Fair Value (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Liabilities: | ||
Customer interest rate swaps | 0 | 0 |
Forward Contracts [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Customer interest rate swaps | 312 | 32 |
Financial Liabilities: | ||
Customer interest rate swaps | 15 | 17 |
Forward Contracts [Member] | Observable Market Data (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Customer interest rate swaps | 312 | 32 |
Financial Liabilities: | ||
Customer interest rate swaps | $ 15 | 17 |
Forward-Starting Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Liabilities: | ||
Junior subordinated debt interest rate swaps | 30 | |
Forward-Starting Interest Rate Swap [Member] | Observable Market Data (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Liabilities: | ||
Junior subordinated debt interest rate swaps | 30 | |
Other Assets [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Customer interest rate swaps | 746 | |
Other Assets [Member] | Observable Market Data (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ||
Financial Assets: | ||
Customer interest rate swaps | $ 746 |
Fair Value (Summary of Assets M
Fair Value (Summary of Assets Measured at Fair Value on Non Recurring Basis) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financing Receivable, Individually Evaluated for Impairment | $ 4,478,000 | $ 6,926,000 | $ 13,590,000 |
non-financial assets measured at fair value on recurring basis | 0 | ||
Impaired Loans Collateral Dependent [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Assets: | |||
Assets, Fair Value Disclosure | 522,000 | ||
Impaired Loans Collateral Dependent [Member] | Fair Value, Measurements, Nonrecurring [Member] | Company Determined Fair Value (Level 3) [Member] | |||
Assets: | |||
Assets, Fair Value Disclosure | 522,000 | ||
Other Real Estate Owned [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Assets: | |||
Assets, Fair Value Disclosure | 94,000 | 130,000 | |
Other Real Estate Owned [Member] | Fair Value, Measurements, Nonrecurring [Member] | Company Determined Fair Value (Level 3) [Member] | |||
Assets: | |||
Assets, Fair Value Disclosure | 94,000 | 130,000 | |
Minimum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financing Receivable, Individually Evaluated for Impairment | 500,000 | ||
Consumer | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financing Receivable, Individually Evaluated for Impairment | 6,000 | ||
Commercial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financing Receivable, Individually Evaluated for Impairment | 319,000 | $ 786,000 | $ 1,791,000 |
Substandard [Member] | Minimum [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financing Receivable, Individually Evaluated for Impairment | $ 500,000 |
Fair Value (Valuation Methodolo
Fair Value (Valuation Methodology and Unobservable Inputs for Level Three Assets Measured at Fair Value on Non Recurring Basis) (Details) $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Other real estate owned [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 94 | $ 130 |
Company Determined Fair Value (Level 3) [Member] | Impaired Loans Partially Charged Off [Member] | Valuation, Market Approach [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 50 | |
Company Determined Fair Value (Level 3) [Member] | Impaired Loans Specifically Reserved [Member] | Valuation, Market Approach [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 472 | |
Company Determined Fair Value (Level 3) [Member] | Other real estate owned [Member] | Valuation, Market Approach [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 94 | 130 |
Company Determined Fair Value (Level 3) [Member] | Other real estate owned [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 94 | $ 130 |
Other real estate owned [Member] | Measurement Input, Appraised Value [Member] | Company Determined Fair Value (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Valuation, Market Approach [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0.18 | 0.19 |
Other real estate owned [Member] | Measurement Input, Appraised Value [Member] | Company Determined Fair Value (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Valuation, Market Approach [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0.18 | 0.19 |
Other real estate owned [Member] | Measurement Input, Appraised Value [Member] | Company Determined Fair Value (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Valuation, Market Approach [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0.18 | 0.19 |
Other real estate owned [Member] | Measurement Input, Cost to Sell [Member] | Company Determined Fair Value (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Valuation, Market Approach [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0.13 | 0.10 |
Other real estate owned [Member] | Measurement Input, Cost to Sell [Member] | Company Determined Fair Value (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Valuation, Market Approach [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0.13 | 0.10 |
Other real estate owned [Member] | Measurement Input, Cost to Sell [Member] | Company Determined Fair Value (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Valuation, Market Approach [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Other Real Estate Owned, Measurement Input | 0.13 | 0.10 |
Impaired Loans Specifically Reserved [Member] | Measurement Input, Appraised Value [Member] | Company Determined Fair Value (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Valuation, Market Approach [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired Loans Specifically Reserved, Measurement Input | 0 | |
Impaired Loans Specifically Reserved [Member] | Measurement Input, Appraised Value [Member] | Company Determined Fair Value (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Valuation, Market Approach [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired Loans Specifically Reserved, Measurement Input | 0 | |
Impaired Loans Specifically Reserved [Member] | Measurement Input, Appraised Value [Member] | Company Determined Fair Value (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Valuation, Market Approach [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired Loans Specifically Reserved, Measurement Input | 0 | |
Impaired Loans Specifically Reserved [Member] | Measurement Input, Cost to Sell [Member] | Company Determined Fair Value (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Valuation, Market Approach [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired Loans Specifically Reserved, Measurement Input | 0.10 | |
Impaired Loans Specifically Reserved [Member] | Measurement Input, Cost to Sell [Member] | Company Determined Fair Value (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Valuation, Market Approach [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired Loans Specifically Reserved, Measurement Input | 0.10 | |
Impaired Loans Specifically Reserved [Member] | Measurement Input, Cost to Sell [Member] | Company Determined Fair Value (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Valuation, Market Approach [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired Loans Specifically Reserved, Measurement Input | 0.10 | |
Impaired Loans Partially Charged Off [Member] | Measurement Input, Appraised Value [Member] | Company Determined Fair Value (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Valuation, Market Approach [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired Loans Partially Charged Off, Measurement Input | 0 | |
Impaired Loans Partially Charged Off [Member] | Measurement Input, Appraised Value [Member] | Company Determined Fair Value (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Valuation, Market Approach [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired Loans Partially Charged Off, Measurement Input | 0 | |
Impaired Loans Partially Charged Off [Member] | Measurement Input, Appraised Value [Member] | Company Determined Fair Value (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Valuation, Market Approach [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired Loans Partially Charged Off, Measurement Input | 0 | |
Impaired Loans Partially Charged Off [Member] | Measurement Input, Cost to Sell [Member] | Company Determined Fair Value (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Valuation, Market Approach [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired Loans Partially Charged Off, Measurement Input | 0.10 | |
Impaired Loans Partially Charged Off [Member] | Measurement Input, Cost to Sell [Member] | Company Determined Fair Value (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Valuation, Market Approach [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired Loans Partially Charged Off, Measurement Input | 0.10 | |
Impaired Loans Partially Charged Off [Member] | Measurement Input, Cost to Sell [Member] | Company Determined Fair Value (Level 3) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Valuation, Market Approach [Member] | Weighted Average [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired Loans Partially Charged Off, Measurement Input | 0.10 |
Fair Value (Carrying Amounts an
Fair Value (Carrying Amounts and Estimated Fair Value for Financial Instrument Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financial assets: | |||||
AFS securities | $ 918,118 | $ 910,692 | |||
HTM securities | 1,302 | 1,307 | |||
Debt Securities, Held-to-maturity, Fair Value | 1,359 | 1,291 | |||
Servicing Asset at Fair Value, Amount | 1,496 | 1,677 | $ 1,766 | $ 1,701 | |
Financial liabilities: | |||||
Time deposits | 594,881 | 654,954 | |||
Federal Home Loan Bank Borrowings, Fair Value Disclosure | 268,631 | 270,598 | |||
Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure | 10,002 | 11,573 | |||
Subordinated debentures | 50,171 | 49,060 | |||
Readily Available Market Prices (Level 1) [Member] | |||||
Financial assets: | |||||
Debt Securities, Held-to-maturity, Fair Value | 0 | 0 | |||
Servicing Asset at Fair Value, Amount | 0 | 0 | |||
Financial liabilities: | |||||
Time deposits | 0 | 0 | |||
Federal Home Loan Bank Borrowings, Fair Value Disclosure | 0 | 0 | |||
Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure | 0 | 0 | |||
Subordinated debentures | 0 | 0 | |||
Observable Market Data (Level 2) [Member] | |||||
Financial assets: | |||||
Debt Securities, Held-to-maturity, Fair Value | 1,359 | 1,291 | |||
Servicing Asset at Fair Value, Amount | 0 | 0 | |||
Financial liabilities: | |||||
Time deposits | 594,881 | 654,954 | |||
Federal Home Loan Bank Borrowings, Fair Value Disclosure | 268,631 | 270,598 | |||
Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure | 10,002 | 11,573 | |||
Subordinated debentures | 50,171 | 49,060 | |||
Company Determined Fair Value (Level 3) [Member] | |||||
Financial assets: | |||||
Debt Securities, Held-to-maturity, Fair Value | 0 | 0 | |||
Servicing Asset at Fair Value, Amount | 1,496 | 1,677 | |||
Financial liabilities: | |||||
Time deposits | 0 | 0 | |||
Federal Home Loan Bank Borrowings, Fair Value Disclosure | 0 | 0 | |||
Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure | 0 | 0 | |||
Subordinated debentures | 0 | 0 | |||
Carrying Amount [Member] | |||||
Financial assets: | |||||
HTM securities | 1,302 | 1,307 | |||
Servicing Asset at Fair Value, Amount | 877 | 831 | |||
Financial liabilities: | |||||
Time deposits | 595,549 | 661,281 | |||
Federal Home Loan Bank Borrowings, Fair Value Disclosure | 268,809 | 270,868 | |||
Securities Loaned or Sold under Agreements to Repurchase, Fair Value Disclosure | 10,000 | 11,580 | |||
Subordinated debentures | 59,080 | 59,067 | |||
Residential real estate | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [1] | 1,066,544 | 957,957 | ||
Residential real estate | Readily Available Market Prices (Level 1) [Member] | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [1] | 0 | 0 | ||
Residential real estate | Observable Market Data (Level 2) [Member] | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [1] | 0 | 0 | ||
Residential real estate | Company Determined Fair Value (Level 3) [Member] | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [1] | 1,066,544 | 957,957 | ||
Residential real estate | Carrying Amount [Member] | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [1] | 1,064,532 | 986,795 | ||
Commercial real estate | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [1] | 1,196,297 | 1,218,436 | ||
Commercial real estate | Readily Available Market Prices (Level 1) [Member] | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [1] | 0 | 0 | ||
Commercial real estate | Observable Market Data (Level 2) [Member] | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [1] | 0 | 0 | ||
Commercial real estate | Company Determined Fair Value (Level 3) [Member] | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [1] | 1,196,297 | 1,218,436 | ||
Commercial real estate | Carrying Amount [Member] | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [1] | 1,230,983 | 1,257,879 | ||
Commercial | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [1],[2] | 431,892 | 404,805 | ||
Commercial | Readily Available Market Prices (Level 1) [Member] | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [1],[2] | 0 | 0 | ||
Commercial | Observable Market Data (Level 2) [Member] | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [1],[2] | 0 | 0 | ||
Commercial | Company Determined Fair Value (Level 3) [Member] | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [1],[2] | 431,892 | 404,805 | ||
Commercial | Carrying Amount [Member] | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [1],[2] | 438,716 | 411,479 | ||
Home equity | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [1] | 293,565 | 317,359 | ||
Home equity | Readily Available Market Prices (Level 1) [Member] | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [1] | 0 | 0 | ||
Home equity | Observable Market Data (Level 2) [Member] | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [1] | 0 | 0 | ||
Home equity | Company Determined Fair Value (Level 3) [Member] | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [1] | 293,565 | 317,359 | ||
Home equity | Carrying Amount [Member] | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [1] | 310,356 | 324,967 | ||
Consumer | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [1] | 23,355 | 18,969 | ||
Consumer | Readily Available Market Prices (Level 1) [Member] | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [1] | 0 | 0 | ||
Consumer | Observable Market Data (Level 2) [Member] | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [1] | 0 | 0 | ||
Consumer | Company Determined Fair Value (Level 3) [Member] | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [1] | 23,355 | 18,969 | ||
Consumer | Carrying Amount [Member] | |||||
Financial assets: | |||||
Loans receivable, net of allowance | [1] | 25,265 | 20,390 | ||
Fair Value, Measurements, Recurring [Member] | |||||
Financial liabilities: | |||||
Junior subordinated debt interest rate swaps | 8,187 | 5,682 | |||
Fair Value, Measurements, Recurring [Member] | Observable Market Data (Level 2) [Member] | |||||
Financial liabilities: | |||||
Junior subordinated debt interest rate swaps | 8,187 | 5,682 | |||
Forward-Starting Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Financial liabilities: | |||||
Junior subordinated debt interest rate swaps | 30 | ||||
Forward-Starting Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Observable Market Data (Level 2) [Member] | |||||
Financial liabilities: | |||||
Junior subordinated debt interest rate swaps | 30 | ||||
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Financial assets: | |||||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 17,756 | 7,841 | |||
Financial liabilities: | |||||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 17,756 | 7,841 | |||
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Observable Market Data (Level 2) [Member] | |||||
Financial assets: | |||||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 17,756 | 7,841 | |||
Financial liabilities: | |||||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 17,756 | 7,841 | |||
Interest Rate Lock Commitments [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Financial assets: | |||||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 480 | 95 | |||
Financial liabilities: | |||||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 18 | 28 | |||
Interest Rate Lock Commitments [Member] | Fair Value, Measurements, Recurring [Member] | Observable Market Data (Level 2) [Member] | |||||
Financial assets: | |||||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 480 | 95 | |||
Financial liabilities: | |||||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 18 | 28 | |||
Interest Rate Lock Commitments [Member] | Fair Value, Measurements, Recurring [Member] | Company Determined Fair Value (Level 3) [Member] | |||||
Financial liabilities: | |||||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 0 | 0 | |||
Forward Contracts [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Financial assets: | |||||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 312 | 32 | |||
Financial liabilities: | |||||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 15 | 17 | |||
Forward Contracts [Member] | Fair Value, Measurements, Recurring [Member] | Observable Market Data (Level 2) [Member] | |||||
Financial assets: | |||||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 312 | 32 | |||
Financial liabilities: | |||||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | $ 15 | $ 17 | |||
[1] | (1)The presented carrying amount is net of the allocated ALL. | ||||
[2] | (2)Includes the HPFC loan portfolio. |
Parent Company Financial Stat_3
Parent Company Financial Statements (Statements of Condition) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Investment in subsidiaries: | ||||
Other assets | $ 89,885 | $ 43,451 | ||
Total assets | 4,429,521 | 4,297,435 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Accrued interest and other liabilities | 80,474 | 55,621 | ||
Shareholders’ equity | 473,415 | 435,825 | $ 403,413 | $ 391,547 |
Total liabilities and shareholders’ equity | 4,429,521 | 4,297,435 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Cash | 30,561 | 32,367 | ||
Investment in subsidiaries: | ||||
Investment in subsidiary | 509,149 | 464,885 | ||
Receivable from subsidiary | 150 | 48 | ||
Other assets | 19,290 | 15,458 | ||
Total assets | 559,150 | 512,758 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Subordinated debentures | 59,080 | 59,067 | ||
Due to subsidiary | 33 | 40 | ||
Accrued interest and other liabilities | 26,622 | 17,826 | ||
Shareholders’ equity | 473,415 | 435,825 | ||
Total liabilities and shareholders’ equity | $ 559,150 | $ 512,758 |
Parent Company Financial Stat_4
Parent Company Financial Statements (Statements of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Dividend income from subsidiary | $ 722 | $ 1,315 | $ 1,135 | ||||||||
Interest on borrowings | 3,621 | 7,456 | 5,585 | ||||||||
Income before income tax expense | $ 19,159 | $ 18,184 | $ 16,479 | $ 17,757 | $ 17,479 | $ 17,295 | $ 15,104 | $ 15,899 | 71,579 | 65,777 | 62,354 |
Income tax benefit (expense) | (3,921) | (3,696) | (3,275) | (3,484) | (3,502) | (3,238) | (2,887) | (3,079) | (14,376) | (12,706) | (33,878) |
Net income | $ 15,238 | $ 14,488 | $ 13,204 | $ 14,273 | $ 13,977 | $ 14,057 | $ 12,217 | $ 12,820 | 57,203 | 53,071 | 28,476 |
Parent Company [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Dividend income from subsidiary | 36,900 | 28,100 | 16,800 | ||||||||
Other income | 1,128 | 283 | 145 | ||||||||
Total operating income | 38,028 | 28,383 | 16,945 | ||||||||
Interest on borrowings | 3,267 | 3,415 | 3,408 | ||||||||
Fees to Bank | 160 | 160 | 160 | ||||||||
Other operating expenses | 641 | 569 | 592 | ||||||||
Total operating expenses | 4,068 | 4,144 | 4,160 | ||||||||
Income before equity in undistributed income of subsidiaries and income taxes | 33,960 | 24,239 | 12,785 | ||||||||
Equity in undistributed income of subsidiaries | 22,580 | 27,971 | 17,405 | ||||||||
Income before income tax expense | 56,540 | 52,210 | 30,190 | ||||||||
Income tax benefit (expense) | 663 | 861 | (1,714) | ||||||||
Net income | $ 57,203 | $ 53,071 | $ 28,476 |
Parent Company Financial Stat_5
Parent Company Financial Statements (Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities | |||||||||||
Net income | $ 15,238 | $ 14,488 | $ 13,204 | $ 14,273 | $ 13,977 | $ 14,057 | $ 12,217 | $ 12,820 | $ 57,203 | $ 53,071 | $ 28,476 |
(Increase) decrease in other assets | (22,405) | (6,679) | 11,190 | ||||||||
Net cash provided by operating activities | 32,871 | 64,334 | 58,334 | ||||||||
Investing Activities | |||||||||||
Net cash used by investing activities | (55,835) | (276,777) | (212,131) | ||||||||
Financing Activities | |||||||||||
Common stock repurchases | (20,795) | (27) | 0 | ||||||||
Cash dividends paid on common stock | (18,572) | (17,170) | (14,323) | ||||||||
Net cash provided by financing activities | 31,601 | 176,471 | 169,061 | ||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 8,637 | (35,972) | 15,264 | ||||||||
Cash, cash equivalents and restricted cash at beginning of year | 66,999 | 102,971 | 66,999 | 102,971 | 87,707 | ||||||
Cash, cash equivalents and restricted cash at end of year | 75,636 | 66,999 | 75,636 | 66,999 | 102,971 | ||||||
Parent Company [Member] | |||||||||||
Operating Activities | |||||||||||
Net income | 57,203 | 53,071 | 28,476 | ||||||||
Equity in undistributed income of subsidiaries | (22,579) | (27,971) | (17,405) | ||||||||
(Increase) decrease in other assets | (2,935) | (1,772) | (1,962) | ||||||||
(Decrease) increase in due to subsidiaries | (109) | 82 | (20) | ||||||||
Increase (decrease) in other liabilities | 4,298 | (4,763) | 3,721 | ||||||||
Net cash provided by operating activities | 35,878 | 18,647 | 12,810 | ||||||||
Investing Activities | |||||||||||
Proceeds from Sale of Available-for-sale Securities, Equity | 0 | 214 | 110 | ||||||||
Net cash used by investing activities | 0 | 214 | 110 | ||||||||
Financing Activities | |||||||||||
Net proceeds from issuance of common stock | 1,683 | 1,338 | 863 | ||||||||
Common stock repurchases | (20,795) | (27) | 0 | ||||||||
Cash dividends paid on common stock | (18,572) | (17,170) | (14,323) | ||||||||
Net cash provided by financing activities | (37,684) | (15,859) | (13,460) | ||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (1,806) | 3,002 | (540) | ||||||||
Cash, cash equivalents and restricted cash at beginning of year | $ 32,367 | $ 29,365 | 32,367 | 29,365 | 29,905 | ||||||
Cash, cash equivalents and restricted cash at end of year | $ 30,561 | $ 32,367 | $ 30,561 | $ 32,367 | $ 29,365 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Interest income | $ 41,552 | $ 42,520 | $ 42,437 | $ 42,009 | $ 40,453 | $ 38,557 | $ 37,089 | $ 35,278 | $ 168,518 | $ 151,377 | $ 136,104 | |
Interest expense | 9,313 | 10,597 | 10,864 | 10,114 | 8,866 | 8,134 | 7,608 | 6,376 | 40,888 | 30,984 | 20,804 | |
Net interest income | 32,239 | 31,923 | 31,573 | 31,895 | 31,587 | 30,423 | 29,481 | 28,902 | 127,630 | 120,393 | 115,300 | |
Provision for credit losses | 214 | 730 | 1,173 | 744 | 7 | 354 | 983 | (497) | 2,861 | 847 | 3,035 | |
Non-interest income | 11,948 | 10,739 | 10,037 | 9,389 | 9,479 | 10,392 | 9,501 | 8,804 | 42,113 | 38,176 | 38,599 | |
Non-interest expense | 24,814 | 23,748 | 23,958 | 22,783 | 23,580 | 23,166 | 22,895 | 22,304 | 95,303 | 91,945 | 88,510 | |
Income before income tax expense | 19,159 | 18,184 | 16,479 | 17,757 | 17,479 | 17,295 | 15,104 | 15,899 | 71,579 | 65,777 | 62,354 | |
Income tax expense | 3,921 | 3,696 | 3,275 | 3,484 | 3,502 | 3,238 | 2,887 | 3,079 | 14,376 | 12,706 | 33,878 | |
Net income | $ 15,238 | $ 14,488 | $ 13,204 | $ 14,273 | $ 13,977 | $ 14,057 | $ 12,217 | $ 12,820 | $ 57,203 | $ 53,071 | $ 28,476 | |
Per common share: | ||||||||||||
Basic earnings per share | $ 1 | $ 0.94 | $ 0.85 | $ 0.91 | $ 0.90 | $ 0.90 | $ 0.78 | $ 0.82 | $ 3.70 | $ 3.40 | $ 1.83 | |
Diluted earnings per share | $ 0.99 | $ 0.94 | $ 0.85 | $ 0.91 | $ 0.89 | $ 0.90 | $ 0.78 | $ 0.82 | $ 3.69 | $ 3.39 | $ 1.82 | |
Change in federal corporate income tax rate(1) | [1] | $ 0 | $ 0 | $ 14,263 | ||||||||
[1] | (1)On December 22, 2017, the Tax Act was enacted, reducing the U.S. federal corporate income tax rate from 35.0% to 21.0%. The Company recognized the effect of the tax law changes in the period of enactment, which resulted in a reduction to net deferred tax assets and a corresponding charge to income tax expense of $14.3 million. |
Uncategorized Items - cac-20191
Label | Element | Value |
Accounting Standards Update 2017-12 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 665,000 |
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 |