Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 28, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 0-28190 | |
Entity Registrant Name | CAMDEN NATIONAL CORP | |
Entity Central Index Key | 0000750686 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Incorporation, State or Country Code | ME | |
Entity Tax Identification Number | 01-0413282 | |
Entity Address, Address Line One | 2 ELM STREET | |
Entity Address, City or Town | CAMDEN | |
Entity Address, State or Province | ME | |
Entity Address, Postal Zip Code | 04843 | |
City Area Code | 207 | |
Local Phone Number | 236-8821 | |
Title of 12(b) Security | Common Stock, without par value | |
Trading Symbol | CAC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,592,804 |
CONSOLIDATED STATEMENTS OF COND
CONSOLIDATED STATEMENTS OF CONDITION (CURRENT PERIOD UNAUDITED) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 53,867 | $ 50,566 |
Interest-bearing deposits in other banks (including restricted cash) | 21,874 | 24,861 |
Total cash, cash equivalents and restricted cash | 75,741 | 75,427 |
Investments: | ||
Trading securities | 3,971 | 3,990 |
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 686,423 | 695,875 |
Held-to-maturity securities, at amortized cost (fair value of $510,999 and $506,193, respectively) | 540,074 | 546,583 |
Other investments | 19,414 | 12,713 |
Total investments | 1,249,882 | 1,259,161 |
Loans held for sale, at fair value (book value of $4,539 and $5,259, respectively) | 4,562 | 5,197 |
Loans | 4,073,108 | 4,010,353 |
Less: allowance for credit losses on loans | (37,134) | (36,922) |
Net loans | 4,035,974 | 3,973,431 |
Goodwill | 94,697 | 94,697 |
Core deposit intangible assets | 1,415 | 1,563 |
Bank-owned life insurance | 99,734 | 99,142 |
Premises and equipment, net | 35,688 | 36,022 |
Deferred tax assets | 47,281 | 50,217 |
Other assets | 71,631 | 76,993 |
Total assets | 5,716,605 | 5,671,850 |
Deposits: | ||
Non-interest checking | 1,047,491 | 1,141,753 |
Interest checking | 1,609,330 | 1,763,850 |
Savings and money market | 1,409,861 | 1,439,622 |
Certificates of deposit | 360,103 | 300,451 |
Brokered deposits | 215,949 | 181,253 |
Total deposits | 4,642,734 | 4,826,929 |
Short-term borrowings | 486,318 | 265,176 |
Junior subordinated debentures | 44,331 | 44,331 |
Accrued interest and other liabilities | 78,348 | 84,136 |
Total liabilities | 5,251,731 | 5,220,572 |
Commitments and Contingencies (Note 7) | ||
Shareholders’ Equity | ||
Common stock, no par value: authorized 40,000,000 shares, issued and outstanding 14,587,906 and 14,567,325 on March 31, 2023 and December 31, 2022, respectively | 115,590 | 115,069 |
Retained earnings | 468,755 | 462,164 |
Accumulated other comprehensive loss | (119,471) | (125,955) |
Total shareholders’ equity | 464,874 | 451,278 |
Total liabilities and shareholders’ equity | $ 5,716,605 | $ 5,671,850 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF CONDITION (CURRENT PERIOD UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Available-for-sale securities, book value | $ 777,621 | $ 796,960 |
Held-to-maturity securities, fair value | 510,999 | 506,193 |
Loans held for sale | $ 4,539 | $ 5,259 |
Common stock, no par value (dollars per share) | $ 0 | $ 0 |
Common stock, authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, issued (in shares) | 14,587,906 | 14,567,325 |
Common stock, outstanding (in shares) | 14,587,906 | 14,567,325 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest Income | ||
Interest and fees on loans | $ 45,332 | $ 32,035 |
Taxable interest on investments | 5,963 | 5,789 |
Nontaxable interest on investments | 763 | 764 |
Dividend income | 219 | 106 |
Other interest income | 448 | 164 |
Total interest income | 52,725 | 38,858 |
Interest Expense | ||
Interest on deposits | 15,832 | 1,833 |
Interest on borrowings | 2,085 | 131 |
Interest on junior subordinated debentures | 528 | 529 |
Total interest expense | 18,445 | 2,493 |
Net interest income | 34,280 | 36,365 |
Provision (credit) for credit losses | 2,002 | (1,075) |
Net interest income after provision (credit) for credit losses | 32,278 | 37,440 |
Non-Interest Income | ||
Brokerage and insurance commissions | 1,093 | 994 |
Mortgage banking income, net | 716 | 1,034 |
Bank-owned life insurance | 592 | 576 |
Other income | 1,165 | 833 |
Total non-interest income | 9,866 | 9,825 |
Non-Interest Expense | ||
Salaries and employee benefits | 14,573 | 15,506 |
Furniture, equipment and data processing | 3,211 | 3,132 |
Net occupancy costs | 2,079 | 2,144 |
Debit card expense | 1,201 | 1,066 |
Consulting and professional fees | 1,055 | 1,007 |
Regulatory assessments | 845 | 655 |
Amortization of core deposit intangible assets | 148 | 156 |
Other expenses | 3,053 | 2,543 |
Total non-interest expense | 26,165 | 26,209 |
Income before income tax expense | 15,979 | 21,056 |
Income Tax Expense | 3,252 | 4,261 |
Net Income | $ 12,727 | $ 16,795 |
Per Share Data | ||
Basic earnings per share | $ 0.87 | $ 1.14 |
Diluted earnings per share | 0.87 | 1.13 |
Cash dividends declared per share | $ 0.42 | $ 0.40 |
Weighted average number of common shares outstanding | 14,573,122 | 14,741,271 |
Diluted weighted average number of common shares outstanding | 14,631,542 | 14,822,332 |
Debit card income | ||
Non-Interest Income | ||
Revenue | $ 2,938 | $ 2,924 |
Service charges on deposit accounts | ||
Non-Interest Income | ||
Revenue | 1,762 | 1,833 |
Income from fiduciary services | ||
Non-Interest Income | ||
Revenue | $ 1,600 | $ 1,631 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 12,727 | $ 16,795 |
Other comprehensive income (loss): | ||
Net change in unrealized gains on available-for-sale securities, net of tax | 9,094 | (72,811) |
Net decrease in fair value, tax (expense) benefit | (2,605) | 2,945 |
Net gain on postretirement plans, net of tax | (5) | 182 |
Other comprehensive income (loss) | 6,484 | (69,684) |
Comprehensive Income (Loss) | $ 19,211 | $ (52,889) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance (in shares) at Dec. 31, 2021 | 14,739,956 | |||
Beginning Balance at Dec. 31, 2021 | $ 541,294 | $ 123,111 | $ 424,412 | $ (6,229) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net Income | 16,795 | 16,795 | ||
Other comprehensive loss, net of tax | (69,684) | (69,684) | ||
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture | 624 | $ 624 | ||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit (shares) | 19,540 | |||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings | (114) | $ (114) | ||
Common stock repurchased (in shares) | (13,086) | |||
Common stock repurchased | (609) | $ (609) | ||
Cash dividends declared | (5,860) | (5,860) | ||
Ending Balance (in shares) at Mar. 31, 2022 | 14,746,410 | |||
Ending Balance at Mar. 31, 2022 | 482,446 | $ 123,012 | 435,347 | (75,913) |
Beginning Balance (in shares) at Dec. 31, 2022 | 14,567,325 | |||
Beginning Balance at Dec. 31, 2022 | 451,278 | $ 115,069 | 462,164 | (125,955) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net Income | 12,727 | 12,727 | ||
Other comprehensive loss, net of tax | 6,484 | 6,484 | ||
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture | 459 | $ 459 | ||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit (shares) | 20,581 | |||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings | 62 | $ 62 | ||
Cash dividends declared | (6,136) | (6,136) | ||
Ending Balance (in shares) at Mar. 31, 2023 | 14,587,906 | |||
Ending Balance at Mar. 31, 2023 | $ 464,874 | $ 115,590 | $ 468,755 | $ (119,471) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared, per share (in dollars per share) | $ 0.42 | $ 0.40 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Activities | ||
Net Income | $ 12,727 | $ 16,795 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Originations of mortgage loans held for sale | (34,397) | (47,671) |
Proceeds from the sale of mortgage loans | 35,501 | 47,771 |
Gain on sale of mortgage loans, net of origination costs | (384) | (1,132) |
Provision (credit) for credit losses | 2,002 | (1,075) |
Depreciation and amortization expense | 815 | 899 |
Investment securities amortization and accretion, net | 605 | 1,217 |
Stock-based compensation expense | 459 | 624 |
Amortization of core deposit intangible assets | 148 | 156 |
Purchase accounting accretion, net | (34) | (80) |
Net (increase) decrease in derivative collateral posted | (1,370) | 24,070 |
(Increase) decrease in other assets | (189) | 998 |
(Decrease) increase in other liabilities | (1,367) | 178 |
Net cash provided by operating activities | 14,516 | 42,750 |
Investing Activities | ||
Proceeds from available-for-sale debt securities | 18,888 | 69,572 |
Proceeds from sales, calls and maturities of available-for-sale debt securities | 0 | 77,865 |
Proceeds from maturities of held-to-maturity securities | 6,216 | 0 |
Net increase in loans | (63,055) | (102,976) |
Purchase of Federal Home Loan Bank stock | (13,591) | (1,799) |
Proceeds from sale of Federal Home Loan Bank stock | 6,890 | 1,892 |
Purchase of premises and equipment | 495 | 393 |
Recoveries of previously charged-off loans | 107 | 62 |
Proceeds from the sale of other real estate owned | 0 | 287 |
Net cash used in investing activities | (45,040) | (111,220) |
Financing Activities | ||
Net decrease in deposits | (184,195) | (32,225) |
Net proceeds from borrowings less than 90 days | 221,142 | 26,060 |
Common stock repurchases | 0 | (542) |
Exercise of stock options and issuance of restricted stock, net of repurchase for tax withholdings | 62 | (114) |
Cash dividends paid on common stock | 6,135 | 5,911 |
Finance lease payments | (36) | (40) |
Net cash provided (used in) by financing activities | 30,838 | (12,772) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 314 | (81,242) |
Cash, cash equivalents, and restricted cash at beginning of period | 75,427 | 220,625 |
Cash, cash equivalents and restricted cash at end of period | 75,741 | 139,383 |
Supplemental information | ||
Interest paid | 17,840 | 2,470 |
Income taxes paid | 146 | 150 |
Dividends Payable | 6,135 | 5,908 |
Unsettled common stock repurchase | $ 0 | $ 67 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited consolidated interim financial statements were prepared in accordance with instructions for Form 10-Q and, therefore, do not include all disclosures required by accounting principles generally accepted in the United States of America for complete presentation of financial statements. In the opinion of management, the consolidated financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the consolidated statements of condition of Camden National Corporation (the "Company") as of March 31, 2023 and December 31, 2022, the consolidated statements of income for the three months ended March 31, 2023 and 2022, the consolidated statements of comprehensive (loss) income for the three months ended March 31, 2023 and 2022, the consolidated statements of changes in shareholders' equity for the three months ended March 31, 2023 and 2022, and the consolidated statements of cash flows for the three months ended March 31, 2023 and 2022. The consolidated financial statements include the accounts of the Company and Camden National Bank (the "Bank"), a wholly-owned subsidiary of the Company (which includes the consolidated accounts of Healthcare Professional Funding Corporation ("HPFC") and Property A, Inc.). All intercompany accounts and transactions have been eliminated in consolidation. Assets held by the Bank in a fiduciary capacity, through Camden National Wealth Management, a division of the Bank, are not assets of the Company and, therefore, are not included in the consolidated statements of condition. The Company also owns 100% of the common stock of Camden Capital Trust A and Union Bankshares Capital Trust I. These entities are unconsolidated subsidiaries of the Company. Certain reclassifications may have been made to prior period amounts to conform to the current period presentation. Any such reclassifications did not impact net income or shareholders' equity as previously reported. Net income reported for the three months ended March 31, 2023, is not necessarily indicative of the results that may be expected for the full year. The information in this report should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. The acronyms, abbreviations and definitions identified below are used throughout this Form 10-Q, including Part I. "Financial Information" and Part II. "Management's Discussion and Analysis of Financial Condition and Results of Operations." The following is provided to aid the reader and provide a reference page when reviewing these sections of the Form 10-Q. Acronym Description Acronym Description AFS: Available-for-sale FRBB: Federal Reserve Bank of Boston ALCO: Asset/Liability Committee GAAP: Generally accepted accounting principles in the United States ACL: Allowance for credit losses GDP: Gross domestic product AOCI: Accumulated other comprehensive income (loss) HPFC: Healthcare Professional Funding Corporation, a wholly-owned subsidiary of Camden National Bank ASC: Accounting Standards Codification HTM: Held-to-maturity ASU: Accounting Standards Update IRS: Internal Revenue Service Bank: Camden National Bank, a wholly-owned subsidiary of Camden National Corporation LGD: Loss given default BOLI: Bank-owned life insurance LIBOR: London Interbank Offered Rate Board ALCO: Board of Directors' Asset/Liability Committee LTIP: Long-Term Performance Share Plan CARES Act: Coronavirus Aid, Relief, and Economic Security Act, signed into law in March 2020 in response to COVID-19 Management ALCO: Management Asset/Liability Committee CCTA: Camden Capital Trust A, an unconsolidated entity formed by Camden National Corporation MBS: Mortgage-backed security CDs: Certificate of deposits MSPP: Management Stock Purchase Plan CECL: Current Expected Credit Losses N/A: Not applicable Company: Camden National Corporation N.M.: Not meaningful CMO: Collateralized mortgage obligation OCC: Office of the Comptroller of the Currency CUSIP: Committee on Uniform Securities Identification Procedures OCI: Other comprehensive income (loss) DCRP: Defined Contribution Retirement Plan OREO: Other real estate owned EPS: Earnings per share PD: Probability of default FASB: Financial Accounting Standards Board SBA: U.S. Small Business Administration FDIC: Federal Deposit Insurance Corporation SBA PPP: U.S. Small Business Administration Paycheck Protection Program FHLB: Federal Home Loan Bank SERP: Supplemental executive retirement plans FHLBB: Federal Home Loan Bank of Boston SOFR: Secured Overnight Financing Rate FHLMC: Federal Home Loan Mortgage Corporation TDR: Troubled-debt restructured loan FNMA: Federal National Mortgage Association UBCT: Union Bankshares Capital Trust I, an unconsolidated entity formed by Union Bankshares Company that was subsequently acquired by Camden National Corporation FOMC: Federal Open Market Committee U.S.: United States of America FRB: Federal Reserve System Board of Governors |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS The Company adopted and updated its accounting policies for the following accounting standards that have been applied to the Company's interim consolidated financial statements for the three months ended March 31, 2023: ASU No. 2022-01, Derivatives and Hedging ( Topic 815): Fair Value Hedging - Portfolio Layer Method ("ASU 2022-01"). The FASB issued ASU 2022-01 to amend ASU 2017-12, which was adopted by the Company in 2018. This amendment renames the "last-of-layer" method to the "portfolio layer" method, permits non-repayable financial assets to be included in a closed portfolio hedged using the portfolio layer method, and provides additional guidance for entities that apply the portfolio layer method of hedge accounting in accordance with Topic 815. The Company adopted ASU 2022-01, as amended, effective January 1, 2023 and leveraged the "portfolio layer" method to enter into interest rate swaps to hedge fixed-rate residential mortgages during the three months ended March 31, 2023. There was no impact to the Company's consolidated financial statements upon adoption. Refer to Note 8 of the consolidated financial statements for further details. ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures ("ASU 2022-02"). The FASB issued ASU 2022-02 to provide new guidance on TDRs and charge-offs for entities that have adopted ASU 2016-13. The Company adopted ASU 2022-02 effective January 1, 2023 on a prospective basis, and upon adoption there was no impact to the consolidated financial statements. The adoption of ASU 2022-02 eliminates the accounting and disclosure requirements for TDRs, including the requirement to measure the allowance using a discounted cash flow ("DCF") methodology. Beginning January 1, 2023, the Company no longer establishes a specific reserve for newly modified loans to borrowers experiencing financial difficulty. Instead, these modifications are included in their respective segments, and the ACL is calculated utilizing models that consider the borrowers' probability of default, loss given default and exposure at default. ASU 2022-02 also requires disclosure of modifications of loans to borrowers experiencing financial difficulty if the modification involves principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, a term extension, or a combination of any of these types of modifications. Additionally, ASU 2022-02 requires the disclosure of current period gross charge-offs by year of loss origination (vintage) which are required to be applied prospectively as of January 1, 2023, the Company's date of adoption. Refer to Note 4 of the consolidated financial statements for further details. The following provides a brief description of recently issued accounting pronouncements that have yet to be adopted by the Company: ASU No. 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method ("ASU 2023-02"). The FASB issued ASU 2023-02 to permit reporting entities to elect to account for tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. Under the proportional amortization method, the initial cost of the investment is amortized in proportion to the income tax credits or other tax benefits received. ASU 2023-02 is effective for interim and annual periods beginning after December 15, 2023. While the Company is currently evaluating, it does not expect the adoption of ASU 2023-02 to have a material impact on its consolidated financial statements. |
INVESTMENTS
INVESTMENTS | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS Trading Securities Trading securities are reported on the Company's consolidated statements of condition at fair value. As of March 31, 2023 and December 31, 2022, the fair value of the Company's trading securities were $4.0 million. These securities are held in a rabbi trust account and invested in mutual funds. The trading securities will be used for future payments associated with the Company's deferred compensation plan for eligible employees and directors. AFS Debt Securities AFS debt securities are reported on the Company's consolidated statements of condition at fair value. The following table summarizes the amortized cost, estimated fair value, and unrealized gains (losses) of AFS debt securities, as of the dates indicated: (In thousands) Amortized Unrealized Unrealized Fair March 31, 2023 Obligations of states and political subdivisions $ 49,142 $ 41 $ (132) $ 49,051 MBS issued or guaranteed by U.S. government-sponsored enterprises 585,249 214 (77,632) 507,831 CMO issued or guaranteed by U.S. government-sponsored enterprises 117,552 — (11,319) 106,233 Subordinated corporate bonds 25,678 — (2,370) 23,308 Total AFS debt securities $ 777,621 $ 255 $ (91,453) $ 686,423 December 31, 2022 Obligations of states and political subdivisions $ 49,678 $ 11 $ (463) $ 49,226 MBS issued or guaranteed by U.S. government-sponsored enterprises 598,845 131 (84,957) 514,019 CMO issued or guaranteed by U.S. government-sponsored enterprises 122,760 — (13,413) 109,347 Subordinated corporate bonds 25,677 3 (2,397) 23,283 Total AFS debt securities $ 796,960 $ 145 $ (101,230) $ 695,875 As of March 31, 2023 and December 31, 2022, there was no allowance carried on AFS debt securities. In June of 2022, the Company transferred securities with a fair value of $520.3 million from AFS to HTM. The unrealized losses on the AFS debt securities at the time of transfer were $72.1 million, pre-tax, and were reported within AOCI. These unrealized losses are being amortized over the remaining life of the securities from AOCI into interest income on the consolidated statements of income. At March 31, 2023 the net unrealized losses on the transferred securities reported within AOCI were $50.9 million, net of a deferred tax asset of $13.9 million and at December 31, 2022 were $52.2 million, net of a deferred tax asset of $14.3 million. The net unrealized losses on AFS debt securities reported within AOCI (excluding the aforementioned securities transferred from AFS to HTM) at March 31, 2023, were $71.6 million, net of a deferred tax asset of $19.6 million and at December 31, 2022 were $79.4 million, net of a deferred tax asset of $21.7 million. For the three months ended March 31, 2023 and 2022, the Company did not sell any AFS debt securities. The following table presents the Company's AFS debt securities with gross unrealized losses, for which an ACL has not been recorded, segregated by the length of time the securities have 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 Fair Unrealized Fair Unrealized Fair Unrealized March 31, 2023 Obligations of states and political subdivisions 54 $ 19,151 $ (48) $ 10,384 $ (84) $ 29,535 $ (132) MBS issued or guaranteed by U.S. government-sponsored enterprises 172 3,310 (80) 488,861 (77,552) 492,171 (77,632) CMO issued or guaranteed by U.S. government-sponsored enterprises 62 2,506 (56) 103,727 (11,263) 106,233 (11,319) Subordinated corporate bonds 14 6,179 (412) 17,129 (1,958) 23,308 (2,370) Total AFS debt securities 302 $ 31,146 $ (596) $ 620,101 $ (90,857) $ 651,247 $ (91,453) December 31, 2022 Obligations of states and political subdivisions 83 42,276 (463) — — 42,276 (463) MBS issued or guaranteed by U.S. government-sponsored enterprises 175 118,290 (11,521) 381,355 (73,436) 499,645 (84,957) CMO issued or guaranteed by U.S. government-sponsored enterprises 64 47,340 (4,589) 62,007 (8,824) 109,347 (13,413) Subordinated corporate bonds 13 7,687 (384) 14,593 (2,013) 22,280 (2,397) Total AFS debt securities 335 $ 215,593 $ (16,957) $ 457,955 $ (84,273) $ 673,548 $ (101,230) For the three months ended March 31, 2023 and 2022, the unrealized losses on the Company's AFS debt securities have not been recognized into income because management does not intend to sell and it is not more-likely-than-not it will be required to sell any of the AFS debt securities before recovery of its amortized cost basis. Furthermore, the unrealized losses were due to changes in interest rates and other market conditions and were not reflective of credit events. Agency-backed and government-sponsored enterprise securities have a long history with no credit losses, including during times of severe stress. The principal and interest payments on agency guaranteed debt is backed by the U.S. government. Government-sponsored enterprises similarly guarantee principal and interest payments and carry an implicit guarantee from the U.S. Department of the Treasury. Additionally, government-sponsored enterprise securities are exceptionally liquid, readily marketable, and provide a substantial amount of price transparency and price parity, indicating a perception of zero credit losses. AFS municipal debt holdings are comprised solely of high credit quality (rated A- or higher) state and municipal obligations. High credit quality state and municipal obligations have a history of zero to near-zero credit loss. Subordinated corporate bonds are primarily comprised of investment grade senior notes and senior subordinated notes of other financial institutions. At March 31, 2023 and December 31, 2022, total accrued interest receivable on AFS debt securities, which has been excluded from reported amortized cost basis on AFS debt securities, was $2.0 million and $1.9 million, respectively, and was reported within other assets on the consolidated statements of condition. An allowance was not carried on the accrued interest receivable at either date. The amortized cost and estimated fair values of the Company's AFS debt securities by contractual maturity at March 31, 2023, 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. Mortgage-related securities are shown in total, as their maturities are highly variable. (In thousands) Amortized Fair Due in one year or less $ 1,002 $ 1,003 Due after one year through five years 13,612 12,323 Due after five years through ten years 60,206 59,032 Due after ten years — — Subtotal 74,820 72,358 Mortgage-related securities 702,801 614,065 Total $ 777,621 $ 686,423 HTM Debt Securities HTM debt securities are reported on the Company's consolidated statements of condition at amortized cost. The following table summarizes the amortized cost, estimated fair value and unrealized gains (losses) of HTM debt securities as of the dates indicated: (In thousands) Amortized Cost (1) Unrealized Unrealized Fair March 31, 2023 Obligations of U.S. government-sponsored enterprises $ 7,491 $ — $ (507) $ 6,984 Obligations of states and political subdivisions 56,049 1,683 (760) 56,972 MBS issued or guaranteed by U.S. government-sponsored enterprises 314,589 — (18,932) 295,657 CMO issued or guaranteed by U.S. government-sponsored enterprises 143,030 — (10,628) 132,402 Subordinated corporate bonds 18,915 607 (538) 18,984 Total HTM debt securities $ 540,074 $ 2,290 $ (31,365) $ 510,999 December 31, 2022 Obligations of U.S. government-sponsored enterprises $ 7,457 $ — $ (777) $ 6,680 Obligations of states and political subdivisions 55,978 431 (1,610) 54,799 MBS issued or guaranteed by U.S. government-sponsored enterprises 317,406 — (24,766) 292,640 CMO issued or guaranteed by U.S. government-sponsored enterprises 145,069 — (13,724) 131,345 Subordinated corporate bonds 20,673 332 (276) 20,729 Total HTM debt securities $ 546,583 $ 763 $ (41,153) $ 506,193 (1) Amortized cost presented above includes unamortized unrealized losses for March 31, 2023 and December 31, 2022: $1.1 million in obligations of U.S. government-sponsored enterprises for both periods, $6.0 million and $6.1 million in obligations of state and political subdivisions, $37.4 million and $38.4 million in mortgage-backed securities, $20.1 million and $20.7 million in collateralized mortgage obligations and $108,000 and $117,000 in subordinated corporate bonds. Agency-backed and government-sponsored enterprise securities have a long history with no credit losses, including during times of severe stress. The principal and interest payments on agency-guaranteed debt is backed by the U.S. government. Government-sponsored enterprises similarly guarantee principal and interest payments and carry an implicit guarantee from the U.S. Department of the Treasury. Additionally, government-sponsored enterprise securities are exceptionally liquid, readily marketable, and provide a substantial amount of price transparency and price parity, indicating a perception of zero credit losses. HTM municipal debt holdings are comprised solely of high credit quality (rated A- or higher) state and municipal obligations. High credit quality state and municipal obligations have a history of zero to near-zero credit loss. Subordinated corporate bonds are primarily comprised of investment grade senior notes and senior subordinated notes of other financial institutions. For the three months ended March 31, 2023 and 2022, the Company recorded a provision for credit losses on its HTM debt securities portfolio of $1.8 million and $0, respectively. The provision for credit losses recorded during the three months ended March 31, 2023 was due to the write-off of a Signature Bank subordinated corporate bond, which was designated as HTM and previously carried no ACL, as the bank failed during the quarter. Additionally, the Company wrote-off accrued interest receivable due from the Signature Bank subordinated corporate bond of $8,000 during the three months ended March 31, 2023, and it was recorded as a reversal of interest income on the consolidated statements of income. The Company did not write-off any accrued interest for the three months ended March 31, 2022. The Company evaluated its HTM debt securities with an amortized cost as of March 31, 2023 and December 31, 2022, and determined that the expected credit loss on its HTM portfolio was immaterial, and therefore it did not carry an ACL at either date. As of March 31, 2023 and December 31, 2022, none of the Company's HTM debt securities were past due or on non-accrual status. For the three months ended March 31, 2023 and 2022, the Company did not recognize any interest income on non-accrual HTM debt securities. At March 31, 2023 and December 31, 2022, total accrued interest receivable on HTM debt securities, which has been excluded from reported amortized cost basis on HTM debt securities, was $1.5 million and $1.7 million, respectively, and was reported within other assets on the consolidated statements of condition. An allowance was not carried on the HTM debt securities accrued interest receivable at either date. The amortized cost and estimated fair values of HTM debt securities by contractual maturity at March 31, 2023 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. Mortgage-related securities are shown in total, as their maturities are highly variable. (In thousands) Amortized Fair Due in one year or less $ — $ — Due after one year through five years 1,285 1,272 Due after five years through ten years 20,527 19,720 Due after ten years 60,643 61,947 Subtotal 82,455 82,939 Mortgage-related securities 457,619 428,060 Total $ 540,074 $ 510,999 AFS and HTM Debt Securities Pledged At March 31, 2023 and December 31, 2022, AFS and HTM debt securities with an amortized cost of $630.2 million and $821.9 million and estimated fair values of $560.3 million and $726.5 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. Other Investments The Company's FHLBB and FRB common stock are reported at cost within other investments on the consolidated statements of condition. The Company evaluates these investments for impairment based on the ultimate recoverability of the par value. The Company did not record any impairment on its FHLBB and FRB stock for the three months ended March 31, 2023 and 2022. The following table summarizes the Company's investment in FHLBB stock and FRBB stock as presented within other investments on the consolidated statements of condition, as of the dates indicated: (In thousands) March 31, December 31, FHLBB $ 14,040 $ 7,339 FRB 5,374 5,374 Total other investments $ 19,414 $ 12,713 |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS | 3 Months Ended |
Mar. 31, 2023 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS Loans The composition of the Company’s loan portfolio, excluding residential loans held for sale, was as follows for the dates indicated: (In thousands) March 31, December 31, Commercial Loans: Commercial real estate - non-owner-occupied $ 1,328,793 $ 1,292,443 Commercial real estate - owner-occupied 337,824 332,494 Commercial 421,099 430,131 Total commercial loans 2,087,716 2,055,068 Retail Loans: Residential real estate 1,733,147 1,700,266 Home equity 232,512 234,428 Consumer 19,733 20,591 Total retail loans 1,985,392 1,955,285 Total loans $ 4,073,108 $ 4,010,353 The loan balances for each portfolio segment presented above are net of their respective unamortized fair value mark discount on acquired loans and net of unamortized loan origination costs for the dates indicated: (In thousands) March 31, December 31, Net unamortized fair value mark discount on acquired loans $ (279) $ (313) Net unamortized loan origination costs 6,944 6,890 Total $ 6,665 $ 6,577 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. SBA PPP Loans. Beginning in April 2020, the Company originated SBA PPP loans issued to qualifying businesses as part of the federal stimulus packages issued due to the COVID-19 pandemic. This program provided qualifying businesses a specialized, low-interest-rate loan by the U.S. Treasury Department and was administered by the SBA. SBA PPP loans provided borrower guarantees for lenders, as well as loan forgiveness incentives for borrowers that utilized the loan proceeds to cover employee compensation-related business operating costs, as well as certain other costs up to pre-established limits. Effective May 31, 2021, the SBA PPP loan program ended and the Company ceased originating loans under this program. At March 31, 2023 and December 31, 2022, five loans with a total principal balance of $583,000 and $648,000, respectively, remain outstanding and were presented in commercial loans. Related Party Loans. In the normal course of business, the Bank makes loans to certain officers, directors and their associated companies, under terms that are consistent with the Company's lending policies and regulatory requirements and that do not involve more than the normal risk of collectability or present other unfavorable features. At March 31, 2023 and December 31, 2022, outstanding loans to certain officers, directors and their associated companies were less than 5% of the Company's shareholders' equity. Loan Sales For the three months ended March 31, 2023 and 2022, the Company sold $35.1 million and $46.6 million, respectively, of residential mortgage loans on the secondary market, which resulted in gains on the sale of loans (net of costs) of $384,000 and $1.1 million, respectively. At March 31, 2023 and December 31, 2022, the Company had certain residential mortgage loans with a principal balance of $4.5 million and $5.3 million, respectively, designated as held for sale. The Company has elected the fair value option of accounting for its loans held for sale, and at March 31, 2023 and December 31, 2022, recorded an unrealized gain (loss) of $23,000 and ($62,000), respectively. For the three months ended March 31, 2023 and 2022, the Company recorded unrealized gains on loans held for sale recorded within mortgage banking income, net, on the Company's consolidated statements of income of $85,000 and $142,000, respectively. The Company has forward delivery commitments with a secondary market investor on each of its loans held for sale at March 31, 2023 and December 31, 2022. Refer to Note 8 for further discussion of the Company's forward delivery commitments. ACL on Loans The Company manages its loan portfolio proactively to effectively identify problem credits and assess trends early, 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. The Company monitors and manages credit risk through the following governance structure: • The Credit Risk and Special Assets team and the Credit Risk Policy Committee, which is an internal management committee comprised of various executives and senior managers across business lines, including Accounting and Finance, Credit Underwriting, Credit Risk and Special Assets, Compliance, and Commercial and Retail Banking, oversee the Company's systems and procedures to monitor the credit quality of its loan portfolio, conduct a loan review program, and maintain the integrity of the loan rating system. • The adequacy of the ACL is overseen by the Management Provision Committee, which is an internal management committee comprised of various Company executives and senior managers across business lines, including Accounting and Finance, Credit Underwriting, Credit Risk and Special Assets, Compliance, and Commercial and Retail Banking. The Management Provision Committee supports the oversight efforts of the Audit Committee of the Board of Directors. • The Directors' Credit Committee of the Board of Directors reviews large credit exposures, monitors external loan review reports, reviews the lending authority for individual loan officers when required, and has approval authority and responsibility for all matters regarding the loan policy and other credit-related policies, including reviewing and monitoring asset quality trends, and concentration levels. • The Audit Committee of the Board of Directors has approval authority and oversight responsibility for the ACL adequacy and methodology. Segmentation. For purposes of determining the ACL on loans, the Company disaggregates its loans into portfolio segments. Each portfolio segment possesses unique risk characteristics that are considered when determining the appropriate level of allowance. As of March 31, 2023 and December 31, 2022, the Company's loan portfolio segments, as determined based on the unique risk characteristics of each, include the following: Commercial Real Estate - Non-Owner-Occupied. Non-owner-occupied commercial real estate loans are, in substance, all commercial real estate loans that are not categorized by the Company as owner-occupied commercial real estate loans. Non-owner-occupied commercial estate loans are investment properties in which the primary source for repayment of the loan by the borrower is derived from rental income associated with the property or the proceeds of the sale, refinancing, or permanent refinancing of the property. Non-owner-occupied commercial real estate loans consist of mortgage loans to finance investments in real property that may include, but are not limited to, multi-family residential, commercial/retail office space, industrial/warehouse space, hotels, assisted living facilities and other specific use properties. Also included within the non-owner-occupied commercial real estate loan segment are construction projects until they are completed. 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. Maximum loan-to-value ratios at origination are governed by established policy and regulatory guidelines. Commercial Real Estate - Owner-Occupied. Generally, owner-occupied commercial real estate loans are properties that are owned and operated by the borrower, and the primary source for repayment is the cash flow from the ongoing operations and activities conducted by the borrower's business. Owner-occupied commercial real estate loans consist of mortgage loans to finance investments in real property that may include, but are not limited to, commercial/retail office space, restaurants, educational and medical practice 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. Maximum loan-to-value ratios at origination are governed by established policy and regulatory guidelines. 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. 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. Home Equity. Home equity loans and lines of credit are made to qualified individuals and are secured by senior or junior mortgage liens on owner-occupied one- to four-family homes, condominiums, or vacation homes. Each home equity loan has a fixed rate and is billed as equal payments comprised of principal and interest. Each home equity line of credit has a variable rate and is billed as interest-only payments during the draw period. At the end of the draw period, the home equity line of credit is billed as a percentage of the principal balance plus all accrued interest. Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan-to-value ratios within established policy guidelines. Consumer. Consumer loan products include personal lines of credit and amortizing loans made to qualified individuals for various purposes such as education, auto loans, debt consolidation, personal expenses or overdraft protection. Borrower qualifications include favorable credit history combined with supportive income and collateral requirements within established policy guidelines, as applicable. Consumer loans may be secured or unsecured. The following table presents the activity in the ACL on loans for the periods indicated: Commercial Real Estate (In thousands) Non-Owner-Occupied Owner- Occupied Commercial Residential Real Estate Home Equity Consumer Total At or For The Three Months Ended March 31, 2023 Beginning balance, December 31, 2022 $ 17,296 $ 2,362 $ 5,446 $ 9,089 $ 2,225 $ 504 $ 36,922 Charge-offs — — (312) (18) — (4) (334) Recoveries 1 — 99 4 — 3 107 (Credit) provision for loan losses (973) 108 (652) 1,737 215 4 439 Ending balance, March 31, 2023 $ 16,324 $ 2,470 $ 4,581 $ 10,812 $ 2,440 $ 507 $ 37,134 At or For The Three Months Ended March 31, 2022 Beginning balance, December 31, 2021 $ 18,834 $ 2,539 $ 4,202 $ 6,133 $ 1,469 $ 79 $ 33,256 Charge-offs — — (245) — — (67) (312) Recoveries 1 2 57 — — 2 62 (Credit) provision for loan losses (2,263) (202) 843 343 (34) 92 (1,221) Ending balance, March 31, 2022 $ 16,572 $ 2,339 $ 4,857 $ 6,476 $ 1,435 $ 106 $ 31,785 At or For The Year Ended December 31, 2022 Beginning balance, December 31, 2021 $ 18,834 $ 2,539 $ 4,202 $ 6,133 $ 1,469 $ 79 $ 33,256 Charge-offs — — (1,042) (66) — (134) (1,242) Recoveries 3 2 379 — 87 7 478 (Credit) provision for loan losses (1,541) (179) 1,907 3,022 669 552 4,430 Ending balance, December 31, 2022 $ 17,296 $ 2,362 $ 5,446 $ 9,089 $ 2,225 $ 504 $ 36,922 The ACL on loans increased $200,000 during the three months ended March 31, 2023, to $37.1 million. The net increase was driven by: an overall softening economy and the increasing likelihood of a recession and 2% loan growth during this period, which was primarily driven by residential real estate and commercial real estate - non-owner-occupied. Credit Concentrations 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 identify credit concentrations effectively, 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 March 31, 2023, the Company's total exposure to the lessors of nonresidential buildings' industry and lessors of residential buildings' industry were 13% and 12% of total loans and 32% and 28% of total commercial real estate loans, respectively. There were no other industry exposures exceeding 10% of the Company's total loan portfolio as of March 31, 2023. Credit Quality Indicators 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 real estate - non-owner-occupied and owner-occupied, commercial and residential real estate portfolio segments 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 ACL on loans: • 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. The Company periodically reassesses asset quality indicators to reflect appropriately 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 prior to adoption of ASU 2022-02, are considered non-performing. Based on the most recent analysis performed, the risk category of loans by portfolio segment by vintage was as follows as of the dates indicated: (In thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Total As of and for the period ended March 31, 2023 Commercial real estate - non-owner-occupied Risk rating Pass (Grades 1-6) $ 32,495 $ 348,906 $ 292,459 $ 158,884 $ 123,148 $ 343,942 $ — $ — $ 1,299,834 Special mention (Grade 7) — — 166 356 252 388 — — 1,162 Substandard (Grade 8) — 177 123 1,255 200 26,042 — — 27,797 Doubtful (Grade 9) — — — — — — — — — Total commercial real estate - non-owner-occupied $ 32,495 $ 349,083 $ 292,748 $ 160,495 $ 123,600 $ 370,372 $ — $ — $ 1,328,793 Gross charge-offs for the three months ended $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate - owner-occupied Risk rating Pass (Grades 1-6) $ 17,730 $ 54,516 $ 79,464 $ 27,889 $ 21,962 $ 106,937 $ — $ — $ 308,498 Special mention (Grade 7) — — — — — 404 — — 404 Substandard (Grade 8) — 8 2,228 — 19,993 6,693 — — 28,922 Doubtful (Grade 9) — — — — — — — — — Total commercial real estate - owner occupied $ 17,730 $ 54,524 $ 81,692 $ 27,889 $ 41,955 $ 114,034 $ — $ — $ 337,824 Gross charge-offs for the three months ended $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial Risk rating Pass (Grades 1-6) $ 13,993 $ 68,567 $ 66,044 $ 30,359 $ 31,455 $ 45,211 $ 130,278 $ 30,254 $ 416,161 Special mention (Grade 7) — — — 87 114 180 200 10 591 Substandard (Grade 8) 192 229 88 134 267 1,906 692 839 4,347 Doubtful (Grade 9) — — — — — — — — — Total commercial $ 14,185 $ 68,796 $ 66,132 $ 30,580 $ 31,836 $ 47,297 $ 131,170 $ 31,103 $ 421,099 Gross charge-offs for the three months ended $ — $ — $ 51 $ 9 $ — $ 172 $ 20 $ 60 $ 312 Residential Real Estate Risk rating Pass (Grades 1-6) $ 47,241 $ 544,518 $ 572,505 $ 236,212 $ 77,364 $ 252,040 $ 347 $ — $ 1,730,227 Special mention (Grade 7) — — — — — — — — — Substandard (Grade 8) — — — — 92 2,828 — — 2,920 Doubtful (Grade 9) — — — — — — — — — Total residential real estate $ 47,241 $ 544,518 $ 572,505 $ 236,212 $ 77,456 $ 254,868 $ 347 $ — $ 1,733,147 Gross charge-offs for the three months ended $ — $ — $ — $ — $ — $ 18 $ — $ — $ 18 Home equity Risk rating Performing $ 3,926 $ 25,674 $ 564 $ 338 $ 4,655 $ 15,125 $ 170,075 $ 11,717 $ 232,074 Non-performing — — — — — 12 347 79 438 Total home equity $ 3,926 $ 25,674 $ 564 $ 338 $ 4,655 $ 15,137 $ 170,422 $ 11,796 $ 232,512 Gross charge-offs for the three months ended $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer Risk rating Performing $ 1,441 $ 7,204 $ 3,359 $ 1,455 $ 826 $ 2,662 $ 2,786 $ — $ 19,733 Non-performing — — — — — — — — — Total consumer $ 1,441 $ 7,204 $ 3,359 $ 1,455 $ 826 $ 2,662 $ 2,786 $ — $ 19,733 Gross charge-offs for the three months ended $ — $ — $ — $ — $ — $ 4 $ — $ — $ 4 (In thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Total As of December 31, 2022 Commercial real estate - non-owner-occupied Risk rating Pass (Grades 1-6) $ 339,171 $ 287,749 $ 160,621 $ 125,029 $ 108,823 $ 242,024 $ — $ — $ 1,263,417 Special mention (Grade 7) — 167 364 259 75 321 — — 1,186 Substandard (Grade 8) — 127 1,306 203 7,798 18,406 — — 27,840 Doubtful (Grade 9) — — — — — — — — — Total commercial real estate - non-owner-occupied $ 339,171 $ 288,043 $ 162,291 $ 125,491 $ 116,696 $ 260,751 $ — $ — $ 1,292,443 Commercial real estate - owner-occupied Risk rating Pass (Grades 1-6) $ 60,127 $ 80,781 $ 28,378 $ 23,381 $ 39,554 $ 70,568 $ — $ — $ 302,789 Special mention (Grade 7) — 2,053 — 19,992 — 411 — — 22,456 Substandard (Grade 8) 17 — — — 3,266 3,966 — — 7,249 Doubtful (Grade 9) — — — — — — — — — Total commercial real estate - owner occupied $ 60,144 $ 82,834 $ 28,378 $ 43,373 $ 42,820 $ 74,945 $ — $ — $ 332,494 Commercial Risk rating Pass (Grades 1-6) $ 73,537 $ 70,110 $ 32,272 $ 33,491 $ 22,271 $ 26,245 $ 135,157 $ 30,191 $ 423,274 Special mention (Grade 7) — — 93 141 70 189 1,196 12 1,701 Substandard (Grade 8) 149 52 133 216 846 1,524 50 2,186 5,156 Doubtful (Grade 9) — — — — — — — — — Total commercial $ 73,686 $ 70,162 $ 32,498 $ 33,848 $ 23,187 $ 27,958 $ 136,403 $ 32,389 $ 430,131 Residential Real Estate Risk rating Pass (Grades 1-6) $ 533,035 $ 579,216 $ 244,691 $ 79,492 $ 50,214 $ 210,262 $ 340 $ — $ 1,697,250 Special mention (Grade 7) — — — — — 23 — — 23 Substandard (Grade 8) — — — — 163 2,830 — — 2,993 Doubtful (Grade 9) — — — — — — — — — Total residential real estate $ 533,035 $ 579,216 $ 244,691 $ 79,492 $ 50,377 $ 213,115 $ 340 $ — $ 1,700,266 Home equity Risk rating Performing $ 26,712 $ 693 $ 341 $ 4,842 $ 7,730 $ 8,551 $ 173,338 $ 11,735 $ 233,942 Non-performing — — — — — 27 377 82 486 Total home equity $ 26,712 $ 693 $ 341 $ 4,842 $ 7,730 $ 8,578 $ 173,715 $ 11,817 $ 234,428 Consumer Risk rating Performing $ 8,009 $ 3,816 $ 1,702 $ 1,188 $ 345 $ 2,462 $ 3,069 $ — $ 20,591 Non-performing — — — — — — — — — Total consumer $ 8,009 $ 3,816 $ 1,702 $ 1,188 $ 345 $ 2,462 $ 3,069 $ — $ 20,591 Past Due and Non-Accrual Loans 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 generally 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 loans past due over 90 days and accruing as of the following dates: (In thousands) 30-59 Days 60-89 Days 90 Days or Greater Total Current Total Loans Loans > 90 March 31, 2023 Commercial real estate - non-owner-occupied $ 34 $ — $ 10 $ 44 $ 1,328,749 $ 1,328,793 $ — Commercial real estate - owner-occupied 77 — 47 124 337,700 337,824 Commercial 965 79 465 1,509 419,590 421,099 — Residential real estate 283 194 459 936 1,732,211 1,733,147 — Home equity 552 106 151 809 231,703 232,512 — Consumer 32 29 — 61 19,672 19,733 — Total $ 1,943 $ 408 $ 1,132 $ 3,483 $ 4,069,625 $ 4,073,108 $ — December 31, 2022 Commercial real estate - non-owner-occupied $ 267 $ — $ 11 $ 278 $ 1,292,165 $ 1,292,443 $ — Commercial real estate - owner-occupied 55 — 47 102 332,392 332,494 — Commercial 667 134 640 1,441 428,690 430,131 — Residential real estate 852 186 524 1,562 1,698,704 1,700,266 — Home equity 357 — 171 528 233,900 234,428 — Consumer 23 11 — 34 20,557 20,591 — Total $ 2,221 $ 331 $ 1,393 $ 3,945 $ 4,006,408 $ 4,010,353 $ — The following table presents the amortized cost basis of loans on non-accrual status (including non-accruing TDRs prior to adoption of ASU 2022-02) by portfolio segment as of the dates indicated: March 31, December 31, (In thousands) Non-Accrual Loans With an Allowance Non-Accrual Loans Without an Allowance Total Non-Accrual Loans Non-Accrual Loans With an Allowance Non-Accrual Loans Without an Allowance Total Non-Accrual Loans Commercial real estate - non-owner-occupied $ — $ 10 $ 10 $ — $ 11 $ 11 Commercial real estate - owner-occupied — 47 47 — 46 46 Commercial 606 142 748 415 300 715 Residential real estate 1,359 356 1,715 1,314 419 1,733 Home equity 377 61 438 421 65 486 Consumer — — — — — — Total $ 2,342 $ 616 $ 2,958 $ 2,150 $ 841 $ 2,991 The following table presents the amortized cost basis of collateral-dependent non-accrual loans (including non-accruing TDRs prior to adoption of ASU 2022-02) by portfolio segment and collateral type, as of the dates indicated: March 31, December 31, Collateral Type Total Collateral -Dependent Collateral Type Total Collateral -Dependent (In thousands) Real Estate General Business Assets Real Estate General Business Assets Residential real estate $ 325 $ — $ 325 $ 387 $ — $ 387 Home equity — — — — — — Total $ 325 $ — $ 325 $ 387 $ — $ 387 Collateral-dependent loans are loans for which repayment is expected to be provided substantially by the underlying collateral and there are no other available and reliable sources of repayment. Interest income that would have been recognized if loans on non-accrual status had been current in accordance with their original terms is estimated to have been $25,000 and $46,000 for the three months ended March 31, 2023 and 2022, respectively. The Company's policy is to reverse previously recorded interest income when a loan is placed on non-accrual. As a result, the Company did not record any interest income on its non-accruals for the three months ended March 31, 2023 and 2022. At March 31, 2023 and December 31, 2022, total accrued interest receivable on loans, which has been excluded from reported amortized cost basis on loans, was $11.0 million and $10.3 million, respectively, and reported within other assets on the consolidated statements of condition. An allowance was not carried on the accrued interest receivable at either date. Loan Modifications for Borrowers Experiencing Financial Difficulty Effective January 1, 2023, the Company adopted prospectively ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures ("ASU 2022-02"). ASU 2022-02 provided guidance that eliminated the recognition and measurement of TDRs. Following the adoption of this guidance, the Company evaluates all loan modifications made to borrowers experiencing financial difficulty, according to the accounting guidance for loan refinancing and restructuring to determine whether such loan modification should be accounted for as a new loan or a continuation of the existing loan. Our loan modifications for borrowers experiencing financial difficulty are generally accounted for as a continuation of the existing loan. We offer several types of loans and receivables modification programs to borrowers experiencing financial difficulty, primarily interest rate reductions and term extensions. In such instances, we may modify loans and receivables with the intention to minimize future losses and improve collectability, while providing customers with temporary or permanent financial relief. There were no modified loans that required disclosure for the three months ended March 31, 2023. Troubled Debt Restructuring Disclosures Prior to Adoption of ASU 2022-02 Prior to the Company's adoption of ASU 2022-02, which became effective for the Company on January 1, 2023, TDRs consisted 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 involved 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 prior to adoption of ASU 2022-02, by portfolio segment, and the associated specific reserve included within the ACL as of December 31, 2022: Number of Contracts Recorded Investment Specific Reserve (In thousands, except number of contracts) December 31, December 31, December 31, Commercial real estate - owner-occupied 1 $ 113 $ 50 Commercial — — — Residential real estate 18 2,208 $ 307 Consumer and home equity 3 245 9 Total 22 $ 2,566 $ 366 At December 31, 2022, the Company had performing and non-performing TDRs with a recorded investment balance of $2.1 million and $452,000, respectively. The following represents loan modifications that qualify as TDRs as of December 31, 2022 that occurred during the period indicated: Number of Contracts Pre-Modification Post-Modification Specific Reserve (In thousands, except number of contracts) December 31, December 31, December 31, December 31, Home equity: Interest rate concession and payment deferral — $ — $ — $ — Maturity concession 1 69 96 — Total 1 $ 69 $ 96 $ — For the year ended December 31, 2022, no loans were modified as TDRs within the previous 12 months for which the borrower subsequently defaulted. In-Process Foreclosure Proceedings At March 31, 2023 and December 31, 2022, the Company had $450,000 and $481,000, respectively, of consumer mortgage loans secured by residential real estate properties for which foreclosure proceedings were in process. FHLB Advances FHLB advances are those borrowings from the FHLBB greater than 90 days. FHLB advances are collateralized by a blanket lien on qualified collateral consisting primarily of loans with first mortgages secured by one- to four-family properties, certain commercial real estate loans, certain pledged investment securities and other qualified assets. The carrying value of residential real estate and commercial loans pledged as collateral was $1.8 billion at March 31, 2023 and December 31, 2022, respectively. Refer to Notes 3 and 6 of the consolidated financial statements for discussion of securities pledged as collateral. |
BORROWINGS
BORROWINGS | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS The following summarizes the Company's short-term borrowed funds as presented on the consolidated statements of condition as of the dates indicated. The Company did not have any long-term borrowings as of the dates indicated. (In thousands) March 31, December 31, Short-Term Borrowings: Customer repurchase agreements $ 196,918 $ 196,451 Overnight borrowings 189,400 18,725 FHLBB borrowings 100,000 50,000 Total short-term borrowings $ 486,318 $ 265,176 The Company has two tranches of junior subordinated debentures in the amount of $44.3 million as of March 31, 2023 and December 31, 2022. Refer to Note 10 of the consolidated financial statements for further details. |
REPURCHASE AGREEMENTS
REPURCHASE AGREEMENTS | 3 Months Ended |
Mar. 31, 2023 | |
Banking and Thrift, Other Disclosure [Abstract] | |
REPURCHASE AGREEMENTS | REPURCHASE AGREEMENTS The Company can raise additional liquidity by entering into repurchase agreements at its discretion. In a security repurchase agreement transaction, the Company will generally sell a security, agreeing to repurchase either the same or a substantially identical security on a specified later date, at a greater price than the original sales price. The difference between the sale price and purchase price is the cost of the proceeds, which is recorded within interest on borrowings on the consolidated statements of income. The securities underlying the agreements are delivered to counterparties as collateral for the repurchase obligations. Because the securities are treated as collateral and the agreement does not qualify for a full transfer of effective control, the 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 table below sets forth information regarding the Company’s repurchase agreements accounted for as secured borrowings and types of collateral as of the dates indicated: (In thousands) March 31, December 31, Customer Repurchase Agreements (1)(2) : Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises $ 174,276 $ 99,105 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 22,642 94,328 Obligations of states and political subdivisions — 3,018 Total $ 196,918 $ 196,451 (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. At March 31, 2023 and December 31, 2022, certain customers held CDs totaling $617,000 and $616,000, 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 C
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2023 | |
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 as of the dates indicated: (In thousands) March 31, December 31, Commitments to extend credit $ 779,402 $ 817,772 Standby letters of credit 6,769 6,801 Total $ 786,171 $ 824,573 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. 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. The Company establishes an ACL on off-balance sheet credit exposures on its contractual off-balance sheet commitments, except those that are unconditionally cancellable by the Company. As of March 31, 2023 and December 31, 2022, the ACL on off-balance sheet credit exposures was $3.0 million and $3.3 million, respectively. The ACL on off-balance sheet credit exposure was presented within accrued interest and other liabilities on the consolidated statements of condition. For the three months ended March 31, 2023 and 2022, the (credit) provision for credit losses on off-balance sheet credit exposures was ($275,000) and $161,000, respectively. 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, the Company may be unable to estimate reasonably possible losses with respect to every litigation matter it faces. |
DERIVATIVES AND HEDGING
DERIVATIVES AND HEDGING | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING | DERIVATIVES AND HEDGING The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s credit derivatives result from loan participation arrangements, and therefore are not used to manage interest rate risk in the Company’s assets or liabilities. Derivatives Designated as Hedging Instruments - Hedges of Interest Rate Risk Interest Rate Contracts - Cash Flow Hedges. The Company’s objectives in using interest rate derivatives are to add stability to interest income and expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed rate payments or the receipt of fixed rate amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. For the three months ended March 31, 2023 and 2022, such derivatives were used to hedge the variable cash flows associated with existing variable-rate assets or liabilities or forecasted issuances of debt. For derivatives designated, and that qualify as, cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in AOCI and subsequently is reclassified into interest expense or interest income in the same period(s) during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest expense or interest income as interest payments are made or received on the Company’s variable-rate liabilities or assets. The Company estimates that an additional $2.5 million will be reclassified as a decrease to interest expense and an additional $3.0 million will be reclassified as a decrease to interest income over the next 12 months. Interest Rate Contracts - Fair Value Hedges. Derivatives designated as fair value hedges are utilized to mitigate the risk of changes in the fair values of recognized assets and liabilities. The Company uses interest rate contracts in this manner to manage its exposure to changes in the fair value of hedged items caused by changes in interest rates. Changes in the fair value of the derivatives and changes in the fair value of the hedged item due to changes in the hedged risk are recognized in earnings in the same line item. If a hedge is terminated, but the hedged item was not derecognized, all remaining adjustments to the carrying amount of the hedged item are amortized over a period that is consistent with the amortization of other discounts or premiums associated with the hedged item. Derivatives not Designated as Hedges Customer Loan Swaps. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting derivatives that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings. Fixed Rate Mortgage Interest Rate Lock Commitments. As part of the origination process of a residential loan, the Company may enter into rate lock agreements with its borrower, which is considered an interest rate lock commitment. If the Company intends to sell the loan upon origination, it will account for the interest rate lock commitment as a derivative. Forward Delivery Commitments. The Company typically enters into a forward delivery commitment with a secondary market investor, which has been approved by the Company within its normal governance process, at the onset of the loan origination process. The Company may enter into these arrangements with the secondary market investors on a "best effort" or "mandatory delivery" basis. The Company's normal practice is typically to enter into these arrangements on a "best effort" basis. The Company enters into these arrangements with the secondary market investors to manage its interest rate exposure. The Company accounts for the forward delivery commitment as a derivative upon origination of a loan identified as held for sale. Risk Participation Agreements. The Company’s existing credit derivatives result from participations in or out of interest rate swaps provided by or to external lenders as part of loan participation arrangements, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain lenders which participate in loans. The following table presents the fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition as of the dates indicated: Derivative Assets Derivative Liabilities (Dollars in thousands) Notional Location Fair Notional Location Fair March 31, 2023 Derivatives designated as hedging instruments: Interest rate contracts (1) $ 60,000 Other assets $ 10,996 $ 433,000 Accrued interest and other liabilities $ 6,859 Total derivatives designated as hedging instruments $ 10,996 $ 6,859 Derivatives not designated as hedging instruments: Customer loan swaps (1) $ 288,076 Other assets $ 11,479 $ 288,076 Accrued interest and other liabilities $ 11,554 Risk participation agreements 21,696 Other assets — 44,127 Accrued interest and other liabilities — Fixed rate mortgage interest rate lock commitments 6,883 Other assets 71 5,843 Accrued interest and other liabilities 43 Forward delivery commitments 2,887 Other assets 32 1,651 Accrued interest and other liabilities 14 Total derivatives not designated as hedging instruments $ 11,582 $ 11,611 December 31, 2022 Derivatives designated as hedging instruments: Interest rate contracts (1) $ 110,000 Other assets $ 13,051 $ 133,000 Accrued interest and other liabilities $ 5,515 Total derivatives designated as hedging instruments $ 13,051 $ 5,515 Derivatives not designated as hedging instruments: Customer loan swaps (1) $ 260,130 Other assets $ 14,802 $ 345,545 Accrued interest and other liabilities $ 14,850 Risk participation agreements 21,818 Other assets — 53,704 Accrued interest and other liabilities — Fixed rate mortgage interest rate lock commitments 4,493 Other assets 31 9,597 Accrued interest and other liabilities 87 Forward delivery commitments 5,259 Other assets 114 — Accrued interest and other liabilities — Total derivatives not designated as hedging instruments $ 14,947 $ 14,937 (1) Reported fair values include accrued interest receivable and payable. The following table shows the carrying amount and associated cumulative basis adjustments related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships: Location in Consolidated Statements of Condition Carrying Amount of Hedged Assets/(Liabilities) Cumulative Fair Value Hedging Adjustment in the Carrying Amount of the Hedged Assets/(Liabilities) (Dollars in thousands) March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Loans (1) $ 301,552 $ — $ (1,552) $ — Total $ 301,552 $ — $ (1,552) $ — (1) These amounts include the amortized cost basis of closed portfolios of fixed rate assets used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. At March 31, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $853.7 million and the amounts of the designated hedged items were $300.0 million. The table below presents the effect of cash flow hedge accounting, before tax, on AOCI for the periods indicated: (Dollars in thousands) Amount of Gain (Loss) Recognized in OCI on Derivative Amount of Gain (Loss) Recognized in OCI Included Component Amount of Gain (Loss) Recognized in OCI Excluded Component Location of Gain (Loss) Recognized Amount of Gain (Loss) Reclassified from AOCI into Income Amount of Gain (Loss) Reclassified from AOCI into Income Included Component Amount of Gain (Loss) Reclassified from AOCI into Income Excluded Component For the Three Months Ended March 31, 2023 Interest rate contracts $ 182 $ 182 $ — Interest and fees on loans $ (717) $ (717) $ — Interest rate contracts (1) (1) — Interest on deposits 306 306 — Interest rate contracts (796) (796) — Interest on borrowings 487 487 — Interest rate contracts (934) (934) — Interest on junior subordinated debentures 133 133 — Total $ (1,549) $ (1,549) $ — $ 209 $ 209 $ — For the Three Months Ended March 31, 2022 Interest rate contracts $ (3,011) $ (3,011) $ — Interest and fees on loans $ 382 $ 382 $ — Interest rate contracts 3,488 3,488 — Interest on deposits (149) (149) — Interest rate contracts 3,158 3,158 Interest on junior subordinated debentures (351) (351) Total $ 3,635 $ 3,635 $ — $ (118) $ (118) $ — The table below presents the effect of fair value and cash flow hedge accounting on the consolidated statements of income for the periods indicated: Location and Amount of Gain (Loss) Recognized in Income Three Months Ended March 31, 2023 2022 (Dollars in thousands) Interest and fees on loans Interest on deposits Interest on borrowings Interest on junior subordinated debentures Interest and fees on loans Interest on deposits Interest on junior subordinated debentures Total presented on the consolidated statements of income in which the effects of cash flow hedges are recorded $ 45,332 $ 15,832 $ 2,085 $ 528 $ 32,035 $ 1,833 $ 529 Gain (loss) on fair value hedging relationships Interest rate contracts: Hedged items $ 1,552 $ — $ — $ — $ — $ — $ — Derivatives designated as hedging instruments $ (1,077) $ — $ — $ — $ — $ — $ — Gain (loss) on cash flow hedging relationships Interest rate contracts: Amount of gain (loss) reclassified from AOCI into income $ (717) $ 306 $ 487 $ 133 $ 382 $ (149) $ (351) Amount of gain (loss) reclassified from AOCI into income - included component $ (717) $ 306 $ 487 $ 133 $ 382 $ (149) $ (351) Amount of gain (loss) reclassified from AOCI into income - excluded component $ — $ — $ — $ — $ — $ — $ — The table below presents the effect of the Company's derivative financial instruments that are not designated as hedging instruments on the consolidated statements of income for the periods indicated: Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Three Months Ended (Dollars in thousands) 2023 2022 Customer loan swaps Other expense $ (27) $ 94 Fixed rate mortgage interest rate lock commitments Mortgage banking income, net 84 (459) Forward delivery commitments Mortgage banking income, net (96) 166 Total $ (39) $ (199) Credit Risk-Related Contingent Features By using derivatives, the Company is exposed to credit risk to the extent that counterparties to the derivative contracts do not perform as required. Should a counterparty fail to perform under the terms of a derivative contract, the Company’s credit exposure on interest rate swaps is limited to the net positive fair value and accrued interest of all swaps with each counterparty. The Company seeks to minimize counterparty credit risk through credit approvals, limits, monitoring procedures, and obtaining collateral, where appropriate. As such, management believes the risk of incurring credit losses on derivative contracts with institutional counterparties is remote. The Company has agreements with its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. In addition, the Company also has agreements with certain of its derivative counterparties that contain a provision where if the Company fails to maintain its status as a well- capitalized institution, then the counterparty could terminate the derivative position(s) and the Company could be required to settle its obligations under the agreements. As of March 31, 2023 and December 31, 2022, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for non-performance risk, related to these agreements was $11.6 million and $14.8 million, respectively. As of March 31, 2023 and December 31, 2022, the Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted cash collateral of $0 and $0, respectively. If the Company had breached any of these provisions at March 31, 2023 or December 31, 2022, it could have been required to settle its obligations under the agreements at their termination value of $11.6 million and $14.8 million, respectively. |
BALANCE SHEET OFFSETTING
BALANCE SHEET OFFSETTING | 3 Months Ended |
Mar. 31, 2023 | |
Offsetting [Abstract] | |
BALANCE SHEET OFFSETTING | BALANCE SHEET OFFSETTINGThe Company does not offset the carrying value for derivative instruments or repurchase agreements on the consolidated statements of condition. The Company nets 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 6 for further discussion of repurchase agreements and Note 8 for further discussion of derivative instruments. The following table presents the Company's derivative positions and repurchase agreements, and the potential effect of netting arrangements on its financial position, as of the dates indicated: Gross Amount Not Offset in the Consolidated Statements of Condition (Dollars 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 March 31, 2023 Derivative assets: Customer loan swaps - commercial customer (2) $ 11,479 $ — $ 11,479 $ — $ — $ 11,479 Interest rate contracts (3) 10,996 — 10,996 — (10,889) 107 Total $ 22,475 $ — $ 22,475 $ — $ (10,889) $ 11,586 Derivative liabilities: Customer loan swaps - dealer bank (3) $ 11,554 $ — $ 11,554 $ — $ — $ 11,554 Interest rate contracts (3) 6,859 — 6,859 — 6,859 — Total $ 18,413 $ — $ 18,413 $ — $ 6,859 $ 11,554 Customer repurchase agreements $ 196,918 $ — $ 196,918 $ 196,918 $ — $ — December 31, 2022 Derivative assets: Customer loan swaps - dealer bank (3) $ 14,802 $ — $ 14,802 $ — $ — $ 14,802 Interest rate contracts (3) 13,051 — 13,051 — (10,915) 2,136 Total $ 27,853 $ — $ 27,853 $ — $ (10,915) $ 16,938 Derivative liabilities: Customer loan swaps - commercial customer (2) $ 14,850 $ — 14,850 $ — $ — $ 14,850 Interest rate contracts (3) 5,515 — 5,515 — 5,515 — Total $ 20,365 $ — $ 20,365 $ — $ 5,515 $ 14,850 Customer repurchase agreements $ 196,451 $ — $ 196,451 $ 196,451 $ — $ — (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. The Company does not post collateral to its commercial customers as part of its contract.. (3) Interest rate swap contracts were completed with the same dealer bank. The Company maintains a master netting arrangement with each counterparty and settles collateral on a net basis for all contracts |
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS | 3 Months Ended |
Mar. 31, 2023 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
REGULATORY CAPITAL REQUIREMENTS | REGULATORY CAPITAL REQUIREMENTS The Company and Bank are subject to various regulatory capital requirements administered by the FRB and the OCC. Failure to meet minimum capital requirements can result in mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. The Company and Bank are required to maintain certain levels of capital based on risk-adjusted assets. These capital requirements represent quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company and Bank's capital classification is also subject to qualitative judgments by our regulators about components, risk weightings and other factors. The quantitative measures established to ensure capital adequacy require the Company and Bank to maintain minimum amounts and ratios of total capital, Tier 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 requirements apply to the Company on a consolidated basis. Under the current requirements, 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, the greater of (i) net income for the preceding four quarters, net of distributions and associated tax effects not reflected in net income and (ii) average net income over the preceding four quarters). The Company and Bank's risk-based capital ratios exceeded regulatory requirements, including the capital conservation buffer, at March 31, 2023 and December 31, 2022, and the Bank's capital ratios met the requirements for it to be considered "well capitalized" under prompt corrective action provisions for each period. There were no changes to the Company or Bank's capital ratios that occurred subsequent to March 31, 2023 that would change the Company or Bank's regulatory capital categorization. The following table presents the Company and Bank's regulatory capital ratios at the periods indicated: March 31, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer Minimum Regulatory Provision to Be "Well Capitalized" December 31, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer Minimum Regulatory Provision to Be "Well Capitalized" (Dollars in thousands) Amount Ratio Amount Ratio Camden National Corporation: Total risk-based capital ratio $ 564,967 13.95 % 10.50 % 10.00 % $ 557,571 13.80 % 10.50 % 10.00 % Tier 1 risk-based capital ratio 524,843 12.96 % 8.50 % 6.00 % 517,385 12.81 % 8.50 % 6.00 % Common equity Tier 1 risk-based capital ratio (1) 481,843 11.90 % 7.00 % N/A 474,385 11.74 % 7.00 % N/A Tier 1 leverage capital ratio (1) 524,843 9.24 % 4.00 % N/A 517,385 9.22 % 4.00 % N/A Camden National Bank: Total risk-based capital ratio $ 532,658 13.18 % 10.50 % 10.00 % $ 525,346 13.03 % 10.50 % 10.00 % Tier 1 risk-based capital ratio 492,534 12.19 % 8.50 % 8.00 % 485,160 12.03 % 8.50 % 8.00 % Common equity Tier 1 risk-based capital ratio 492,534 12.19 % 7.00 % 6.50 % 485,160 12.03 % 7.00 % 6.50 % Tier 1 leverage capital ratio 492,534 8.68 % 4.00 % 5.00 % 485,160 8.65 % 4.00 % 5.00 % (1) “Minimum Regulatory Provisions to Be ‘Well Capitalized’” are not formally defined under applicable banking regulations for bank holding companies. In 2006 and 2008, the Company issued $43.0 million of junior subordinated debentures in connection with the issuance of trust preferred securities. Although 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 the debentures within its calculation of risk-based capital, subject to certain limits. At March 31, 2023 and December 31, 2022, $43.0 million of the junior subordinated debentures were included in Tier 1 and Tier 2 capital for the Company. The Company and Bank's regulatory capital and risk-weighted assets fluctuate due to normal business, including profits and losses generated by the Company and Bank as well as changes to their asset mix. Of particular significance are changes within the Company and Bank's loan portfolio mix due to the differences in regulatory risk-weighting between retail and commercial loans. Furthermore, the Company and Bank's regulatory capital and risk-weighted assets are subject to change due to changes in GAAP and regulatory capital standards. The Company and Bank proactively monitor their regulatory capital and risk-weighted assets, and the impact of changes to their asset mix, and the impact of proposed and pending changes as a result of new and/or amended GAAP standards and regulatory changes. |
OTHER COMPREHENSIVE INCOME (LOS
OTHER COMPREHENSIVE INCOME (LOSS) OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Mar. 31, 2023 | |
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 Three Months Ended March 31, 2023 March 31, 2022 (In thousands) Pre-Tax Tax (Expense) After-Tax Pre-Tax Tax (Expense) After-Tax Debt Securities: Change in fair value $ 9,885 $ (2,125) $ 7,760 $ (92,753) $ 19,942 $ (72,811) Less: reclassification adjustment for amortization of securities transferred from AFS to HTM (1) (1,699) 365 (1,334) — — — Net change in fair value 11,584 (2,490) 9,094 (92,753) 19,942 (72,811) Cash Flow Hedges: Change in fair value (3,109) 668 (2,441) 3,635 (782) 2,853 Less: reclassified AOCI gain (loss) into interest expense (2) 926 (199) 727 (500) 108 (392) Less: reclassified AOCI (loss) gain into interest income (3) (717) 154 (563) 382 (82) 300 Net change in fair value (3,318) 713 (2,605) 3,753 (808) 2,945 Postretirement Plans: Amortization of settlement recognition of net loss and prior service credit (4) (6) 1 (5) 232 (50) 182 Other comprehensive income (loss) $ 8,260 $ (1,776) $ 6,484 $ (88,768) $ 19,084 $ (69,684) (1) Reclassified into taxable interest on investments and/or nontaxable interest on investments in the consolidated statements of income. Refer to Note 3 of the consolidated financial statements for further details. (2) Reclassified into interest on deposits, borrowings and/or subordinated debentures on the consolidated statements of income. Refer to Note 8 of the consolidated financial statements for further details. (3) Reclassified into interest and fees on loans on the consolidated statements of income. Refer to Note 8 of the consolidated financial statements for further details. (4) Reclassified into other expenses on the consolidated statements of income. Refer to Note 13 of the consolidated financial statements for further details. The following table presents the changes in each component of AOCI, after tax, for the periods indicated: (In thousands) Net Unrealized Gains (Losses) on Debt Securities (1) Net Unrealized (Losses) Gains on Cash Flow Hedges (1) Defined Benefit Postretirement Plans (1) AOCI (1) Balance at December 31, 2022 $ (131,539) $ 5,891 $ (307) $ (125,955) Other comprehensive income (loss) before reclassifications 7,760 (2,441) — 5,319 Less: Amounts reclassified from AOCI (1,334) 164 5 (1,165) Other comprehensive income (loss) 9,094 (2,605) (5) 6,484 Balance at March 31, 2023 $ (122,445) $ 3,286 $ (312) $ (119,471) Balance at December 31, 2021 $ (1,173) $ (1,779) $ (3,277) $ (6,229) Other comprehensive (loss) income before reclassifications (72,811) 2,853 — (69,958) Less: Amounts reclassified from AOCI — (92) (182) (274) Other comprehensive (loss) income (72,811) 2,945 182 (69,684) Balance at March 31, 2022 $ (73,984) $ 1,166 $ (3,095) $ (75,913) (1) All amounts are net of tax |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS REVENUE FROM CONTRACS WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS 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 customers that are within the scope of ASC 606 closely aligns with the presentation of revenue categories presented within non-interest income on the consolidated statements of income. The following table presents the revenue streams within the scope of ASC 606 for the periods indicated: Location on Consolidated Statements of Income Three Months Ended (In thousands) 2023 2022 Debit card interchange income Debit card income $ 2,938 $ 2,924 Services charges on deposit accounts Service charges on deposit accounts 1,762 1,833 Fiduciary services income Income from fiduciary services 1,600 1,631 Investment program income Brokerage and insurance commissions 1,093 994 Other non-interest income Other income 422 400 Total non-interest income within the scope of ASC 606 7,815 7,782 Total non-interest income not in scope of ASC 606 2,051 2,043 Total non-interest income $ 9,866 $ 9,825 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS The Company sponsors unfunded, non-qualified SERPs for certain officers and provides medical and life insurance to certain eligible retired employees. The components of net periodic pension and postretirement benefit costs were as follows for the following periods: Supplemental Executive Retirement Plan: (In thousands) Location on Consolidated Statements of Income Three Months Ended Net periodic pension cost 2023 2022 Service cost Salaries and employee benefits $ 70 $ 133 Interest cost Other expenses 189 115 Recognized net actuarial loss Other expenses — 216 Total $ 259 $ 464 Other Postretirement Benefit Plan: (In thousands) Location on Consolidated Statements of Income Three Months Ended Net periodic postretirement benefit cost 2023 2022 Service cost Salaries and employee benefits $ 3 $ 5 Interest cost Other expenses 40 28 Recognized net actuarial (gain) loss Other expenses (1) 22 Amortization of prior service credit Other expenses (6) (6) Total $ 36 $ 49 |
EPS
EPS | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
EPS | EPS The following is an analysis of basic and diluted EPS, reflecting the application of the two-class method, as described below: Three Months Ended (In thousands, except number of shares and per share data) 2023 2022 Net income $ 12,727 $ 16,795 Dividends and undistributed earnings allocated to participating securities (1) (25) (43) Net income available to common shareholders $ 12,702 $ 16,752 Weighted-average common shares outstanding for basic EPS 14,573,122 14,741,271 Dilutive effect of stock-based awards (2) 58,420 81,061 Weighted-average common and potential common shares for diluted EPS 14,631,542 14,822,332 Earnings per common share: Basic EPS $ 0.87 $ 1.14 Diluted EPS $ 0.87 $ 1.13 Awards excluded from the calculation of diluted EPS (3) : Performance-based awards 1,141 1,027 (1) Represents dividends paid and undistributed earnings allocated to non-vested stock-based awards that contain non-forfeitable rights to dividends. (2) Represents the assumed dilutive effect of unexercised and/or unvested stock options, restricted shares, restricted share units and contingently issuable performance-based awards utilizing the treasury stock method. (3) Represents stock-based awards not included in the computation of potential common shares for purposes of calculating diluted EPS as the exercise prices were greater than the average market price of the Company's common stock, and, therefore, are considered anti-dilutive. Non-vested 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 non-vested stock-based awards qualify as participating securities. |
FAIR VALUE MEASUREMENT AND DISC
FAIR VALUE MEASUREMENT AND DISCLOSURE | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT AND DISCLOSURE | FAIR VALUE MEASUREMENT AND DISCLOSURE Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined using quoted market prices. However, in many instances, quoted market prices are not available. In such instances, fair values are determined using various valuation techniques. Various assumptions and observable inputs must be relied upon in applying these techniques. GAAP establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. GAAP permits an entity to choose to measure eligible financial instruments and other items at fair value. The Company has elected the fair value option for its loans held for sale. Electing the fair value option for loans held for sale enables the Company’s financial position to align more clearly 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 Trading Securities and Deferred Compensation: The fair value of trading securities and deferred compensation is reported using market quoted prices and has been classified as Level 1 as such securities and underlying securities are actively traded and no valuation adjustments have been applied. 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. 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. 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. As of March 31, 2023 and December 31, 2022, the credit valuation adjustment on the overall valuation of its derivative positions and was not significant to the overall valuation of its derivatives, and, thus, the Company's interest rate swaps were classified as Level 2. The fair value of the Company's fixed rate interest rate lock commitments were determined using secondary market pricing for loans with similar structures, including term, rate and borrower credit quality, adjusted for the Company's pull-through rate estimate (i.e. estimate of loans within its loan 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 is 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 Readily Observable Company March 31, 2023 Financial assets: Trading securities $ 3,971 $ 3,971 $ — $ — AFS debt securities: Obligations of states and political subdivisions 49,051 — 49,051 — Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 507,831 — 507,831 — Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 106,233 — 106,233 — Subordinated corporate bonds 23,308 — 23,308 — Loans held for sale 4,562 — 4,562 — Customer loan swaps 11,479 — 11,479 — Interest rate contracts 10,996 — 10,996 — Fixed rate mortgage interest rate lock commitments 71 — 71 — Forward delivery commitments 32 — 32 — Financial liabilities: Deferred compensation $ 3,971 $ 3,971 $ — $ — Customer loan swaps 11,554 — 11,554 — Interest rate contracts 6,859 — 6,859 — Fixed rate mortgage interest rate lock commitments 43 — 43 — Forward delivery commitments 14 — 14 — December 31, 2022 Financial assets: Trading securities $ 3,990 $ 3,990 $ — $ — AFS debt securities: Obligations of states and political subdivisions 49,226 — 49,226 — Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 514,019 — 514,019 — Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 109,347 — 109,347 — Subordinated corporate bonds 23,283 — 23,283 — Loans held for sale 5,197 — 5,197 — Customer loan swaps 14,802 — 14,802 — Interest rate contracts 13,051 — 13,051 — Fixed rate mortgage interest rate lock commitments 31 — 31 — Forward delivery commitments 114 — 114 — Financial liabilities: Deferred compensation $ 3,990 $ 3,990 $ — $ — Customer loan swaps 14,850 — 14,850 — Interest rate contracts 5,515 — 5,515 — Fixed rate mortgage interest rate lock commitments 87 — 87 — The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during the three months ended March 31, 2023. 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, which may consist of collateral-dependent loans and servicing assets. 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. As of March 31, 2023 and March 31, 2022, the Company did not have any material financial instruments measured and reported at fair value. Collateral-Dependent Loans : Expected credit losses on individually assessed loans deemed to be collateral dependent are valued based upon the lower of amortized cost or fair value of the underlying collateral less costs to sell. Management estimates the fair values of these assets using Level 2 inputs, such as the fair value of collateral based on independent third-party market approach appraisals for collateral-dependent loans, and Level 3 inputs where circumstances warrant an adjustment to the appraised value based on the age of the appraisal and/or comparable sales, condition of the collateral, and market conditions. Servicing Assets : The Company accounts for mortgage servicing assets at cost, subject to impairment testing. When the carrying value of a tranche exceeds fair value, a valuation allowance is established to reduce the carrying cost to fair value. Fair value is based on a valuation model that calculates the present value of estimated net servicing income. The Company obtains a third-party valuation based upon loan level data including note rate, type and term of the underlying loans. The model utilizes two significant unobservable inputs, namely loan prepayment assumptions and the discount rate used, to calculate the fair value of each tranche, and, as such, the Company has classified the model within Level 3 of the fair value hierarchy. Non-Financial Instruments Recorded at Fair Value on a Non-Recurring Basis The Company had no non-financial assets or non-financial liabilities measured at fair value on a non-recurring basis as of March 31, 2023 and March 31, 2022. 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 ACL 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 credit 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. At March 31, 2023 and December 31, 2022, the Company did not have any OREO properties. Goodwill : Goodwill represents the excess cost of an acquisition over the fair value of the net assets acquired. The fair value of goodwill is estimated by utilizing several standard valuation techniques, including discounted cash flow analyses, bank merger multiples, and/or an estimation of the impact of business conditions and investor activities on the long-term value of the goodwill. Should an impairment occur, the associated goodwill is written-down to fair value and the impairment charge is recorded within non-interest expense in the consolidated statements of income. The Company conducts an annual impairment test of goodwill in the fourth quarter each year, or more frequently as necessary. There have been no indications or triggering events during the three months ended March 31, 2023, for which management believes it is more likely than not that goodwill is impaired. Core Deposit Intangible Assets : The Company's core deposit intangible assets represent the estimated value of acquired customer relationships and are amortized 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 events or changes in circumstances for the three months ended March 31, 2023, that indicated the carrying amount may not be recoverable. 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: Carrying Fair Value Readily Observable Company March 31, 2023 Financial assets: HTM debt securities $ 540,074 $ 510,999 $ — $ 510,999 $ — Commercial real estate loans (1)(2) 1,647,823 1,586,974 — — 1,586,974 Commercial loans (2) 416,518 405,429 — — 404,847 Residential real estate loans (2) 1,722,335 1,509,387 — — 1,509,387 Home equity loans (2) 230,072 228,821 — — 228,821 Consumer loans (2) 19,226 16,993 — — 16,993 Servicing assets 2,413 4,187 — — 4,187 Financial liabilities: Time deposits $ 360,103 $ 351,795 $ — $ 351,795 $ — Short-term borrowings 486,318 485,505 — 485,505 — Subordinated debentures 44,331 31,918 — 31,918 — December 31, 2022 Financial assets: HTM debt securities $ 546,583 $ 506,193 $ — $ 506,193 $ — Commercial real estate loans (1)(2) 1,605,279 1,550,379 — — 1,550,379 Commercial loans (2) 424,685 414,353 — — 414,353 Residential real estate loans (2) 1,691,177 1,494,707 — — 1,494,707 Home equity loans (2) 232,203 237,967 — — 237,967 Consumer loans (2) 20,087 17,853 — — 17,853 Servicing assets 2,458 4,412 — — 4,412 Financial liabilities: Time deposits $ 300,451 $ 291,568 $ — $ 291,568 $ — Short-term borrowings 265,176 264,779 — 264,779 — Subordinated debentures 44,331 31,032 — 31,032 — (1) Commercial real estate loan includes non-owner-occupied and owner-occupied properties. (2) The presented carrying amount is net of the allocated ACL on loans. 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. |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Standards Adopted in 2021 | The Company adopted and updated its accounting policies for the following accounting standards that have been applied to the Company's interim consolidated financial statements for the three months ended March 31, 2023: ASU No. 2022-01, Derivatives and Hedging ( Topic 815): Fair Value Hedging - Portfolio Layer Method ("ASU 2022-01"). The FASB issued ASU 2022-01 to amend ASU 2017-12, which was adopted by the Company in 2018. This amendment renames the "last-of-layer" method to the "portfolio layer" method, permits non-repayable financial assets to be included in a closed portfolio hedged using the portfolio layer method, and provides additional guidance for entities that apply the portfolio layer method of hedge accounting in accordance with Topic 815. The Company adopted ASU 2022-01, as amended, effective January 1, 2023 and leveraged the "portfolio layer" method to enter into interest rate swaps to hedge fixed-rate residential mortgages during the three months ended March 31, 2023. There was no impact to the Company's consolidated financial statements upon adoption. Refer to Note 8 of the consolidated financial statements for further details. ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures ("ASU 2022-02"). The FASB issued ASU 2022-02 to provide new guidance on TDRs and charge-offs for entities that have adopted ASU 2016-13. The Company adopted ASU 2022-02 effective January 1, 2023 on a prospective basis, and upon adoption there was no impact to the consolidated financial statements. The adoption of ASU 2022-02 eliminates the accounting and disclosure requirements for TDRs, including the requirement to measure the allowance using a discounted cash flow ("DCF") methodology. Beginning January 1, 2023, the Company no longer establishes a specific reserve for newly modified loans to borrowers experiencing financial difficulty. Instead, these modifications are included in their respective segments, and the ACL is calculated utilizing models that consider the borrowers' probability of default, loss given default and exposure at default. ASU 2022-02 also requires disclosure of modifications of loans to borrowers experiencing financial difficulty if the modification involves principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, a term extension, or a combination of any of these types of modifications. Additionally, ASU 2022-02 requires the disclosure of current period gross charge-offs by year of loss origination (vintage) which are required to be applied prospectively as of January 1, 2023, the Company's date of adoption. Refer to Note 4 of the consolidated financial statements for further details. The following provides a brief description of recently issued accounting pronouncements that have yet to be adopted by the Company: ASU No. 2023-02, Investments - Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method ("ASU 2023-02"). The FASB issued ASU 2023-02 to permit reporting entities to elect to account for tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. Under the proportional amortization method, the initial cost of the investment is amortized in proportion to the income tax credits or other tax benefits received. ASU 2023-02 is effective for interim and annual periods beginning after December 15, 2023. While the Company is currently evaluating, it does not expect the adoption of ASU 2023-02 to have a material impact on its consolidated financial statements. |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Costs and Estimated Fair Values of Available-For-Sale Securities | The following table summarizes the amortized cost, estimated fair value, and unrealized gains (losses) of AFS debt securities, as of the dates indicated: (In thousands) Amortized Unrealized Unrealized Fair March 31, 2023 Obligations of states and political subdivisions $ 49,142 $ 41 $ (132) $ 49,051 MBS issued or guaranteed by U.S. government-sponsored enterprises 585,249 214 (77,632) 507,831 CMO issued or guaranteed by U.S. government-sponsored enterprises 117,552 — (11,319) 106,233 Subordinated corporate bonds 25,678 — (2,370) 23,308 Total AFS debt securities $ 777,621 $ 255 $ (91,453) $ 686,423 December 31, 2022 Obligations of states and political subdivisions $ 49,678 $ 11 $ (463) $ 49,226 MBS issued or guaranteed by U.S. government-sponsored enterprises 598,845 131 (84,957) 514,019 CMO issued or guaranteed by U.S. government-sponsored enterprises 122,760 — (13,413) 109,347 Subordinated corporate bonds 25,677 3 (2,397) 23,283 Total AFS debt securities $ 796,960 $ 145 $ (101,230) $ 695,875 The following table summarizes the Company's investment in FHLBB stock and FRBB stock as presented within other investments on the consolidated statements of condition, as of the dates indicated: (In thousands) March 31, December 31, FHLBB $ 14,040 $ 7,339 FRB 5,374 5,374 Total other investments $ 19,414 $ 12,713 |
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 Company's AFS debt securities with gross unrealized losses, for which an ACL has not been recorded, segregated by the length of time the securities have 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 Fair Unrealized Fair Unrealized Fair Unrealized March 31, 2023 Obligations of states and political subdivisions 54 $ 19,151 $ (48) $ 10,384 $ (84) $ 29,535 $ (132) MBS issued or guaranteed by U.S. government-sponsored enterprises 172 3,310 (80) 488,861 (77,552) 492,171 (77,632) CMO issued or guaranteed by U.S. government-sponsored enterprises 62 2,506 (56) 103,727 (11,263) 106,233 (11,319) Subordinated corporate bonds 14 6,179 (412) 17,129 (1,958) 23,308 (2,370) Total AFS debt securities 302 $ 31,146 $ (596) $ 620,101 $ (90,857) $ 651,247 $ (91,453) December 31, 2022 Obligations of states and political subdivisions 83 42,276 (463) — — 42,276 (463) MBS issued or guaranteed by U.S. government-sponsored enterprises 175 118,290 (11,521) 381,355 (73,436) 499,645 (84,957) CMO issued or guaranteed by U.S. government-sponsored enterprises 64 47,340 (4,589) 62,007 (8,824) 109,347 (13,413) Subordinated corporate bonds 13 7,687 (384) 14,593 (2,013) 22,280 (2,397) Total AFS debt securities 335 $ 215,593 $ (16,957) $ 457,955 $ (84,273) $ 673,548 $ (101,230) |
Contractual Obligation, Fiscal Year Maturity | The amortized cost and estimated fair values of the Company's AFS debt securities by contractual maturity at March 31, 2023, 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. Mortgage-related securities are shown in total, as their maturities are highly variable. (In thousands) Amortized Fair Due in one year or less $ 1,002 $ 1,003 Due after one year through five years 13,612 12,323 Due after five years through ten years 60,206 59,032 Due after ten years — — Subtotal 74,820 72,358 Mortgage-related securities 702,801 614,065 Total $ 777,621 $ 686,423 |
Debt Securities, Held-to-maturity | The following table summarizes the amortized cost, estimated fair value and unrealized gains (losses) of HTM debt securities as of the dates indicated: (In thousands) Amortized Cost (1) Unrealized Unrealized Fair March 31, 2023 Obligations of U.S. government-sponsored enterprises $ 7,491 $ — $ (507) $ 6,984 Obligations of states and political subdivisions 56,049 1,683 (760) 56,972 MBS issued or guaranteed by U.S. government-sponsored enterprises 314,589 — (18,932) 295,657 CMO issued or guaranteed by U.S. government-sponsored enterprises 143,030 — (10,628) 132,402 Subordinated corporate bonds 18,915 607 (538) 18,984 Total HTM debt securities $ 540,074 $ 2,290 $ (31,365) $ 510,999 December 31, 2022 Obligations of U.S. government-sponsored enterprises $ 7,457 $ — $ (777) $ 6,680 Obligations of states and political subdivisions 55,978 431 (1,610) 54,799 MBS issued or guaranteed by U.S. government-sponsored enterprises 317,406 — (24,766) 292,640 CMO issued or guaranteed by U.S. government-sponsored enterprises 145,069 — (13,724) 131,345 Subordinated corporate bonds 20,673 332 (276) 20,729 Total HTM debt securities $ 546,583 $ 763 $ (41,153) $ 506,193 (1) Amortized cost presented above includes unamortized unrealized losses for March 31, 2023 and December 31, 2022: $1.1 million in obligations of U.S. government-sponsored enterprises for both periods, $6.0 million and $6.1 million in obligations of state and political subdivisions, $37.4 million and $38.4 million in mortgage-backed securities, $20.1 million and $20.7 million in collateralized mortgage obligations and $108,000 and $117,000 in subordinated corporate bonds. |
Amortized Cost and Estimated Fair Values of Debt Securities by Contractual Maturity | The amortized cost and estimated fair values of HTM debt securities by contractual maturity at March 31, 2023 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. Mortgage-related securities are shown in total, as their maturities are highly variable. (In thousands) Amortized Fair Due in one year or less $ — $ — Due after one year through five years 1,285 1,272 Due after five years through ten years 20,527 19,720 Due after ten years 60,643 61,947 Subtotal 82,455 82,939 Mortgage-related securities 457,619 428,060 Total $ 540,074 $ 510,999 |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Composition of Loan Portfolio, Excluding Residential Loans Held for Sale | The composition of the Company’s loan portfolio, excluding residential loans held for sale, was as follows for the dates indicated: (In thousands) March 31, December 31, Commercial Loans: Commercial real estate - non-owner-occupied $ 1,328,793 $ 1,292,443 Commercial real estate - owner-occupied 337,824 332,494 Commercial 421,099 430,131 Total commercial loans 2,087,716 2,055,068 Retail Loans: Residential real estate 1,733,147 1,700,266 Home equity 232,512 234,428 Consumer 19,733 20,591 Total retail loans 1,985,392 1,955,285 Total loans $ 4,073,108 $ 4,010,353 |
Schedule of Loan Balances by Portfolio Segment | The loan balances for each portfolio segment presented above are net of their respective unamortized fair value mark discount on acquired loans and net of unamortized loan origination costs for the dates indicated: (In thousands) March 31, December 31, Net unamortized fair value mark discount on acquired loans $ (279) $ (313) Net unamortized loan origination costs 6,944 6,890 Total $ 6,665 $ 6,577 |
Summary of Activity in Allowance for Loan Losses | The following table presents the activity in the ACL on loans for the periods indicated: Commercial Real Estate (In thousands) Non-Owner-Occupied Owner- Occupied Commercial Residential Real Estate Home Equity Consumer Total At or For The Three Months Ended March 31, 2023 Beginning balance, December 31, 2022 $ 17,296 $ 2,362 $ 5,446 $ 9,089 $ 2,225 $ 504 $ 36,922 Charge-offs — — (312) (18) — (4) (334) Recoveries 1 — 99 4 — 3 107 (Credit) provision for loan losses (973) 108 (652) 1,737 215 4 439 Ending balance, March 31, 2023 $ 16,324 $ 2,470 $ 4,581 $ 10,812 $ 2,440 $ 507 $ 37,134 At or For The Three Months Ended March 31, 2022 Beginning balance, December 31, 2021 $ 18,834 $ 2,539 $ 4,202 $ 6,133 $ 1,469 $ 79 $ 33,256 Charge-offs — — (245) — — (67) (312) Recoveries 1 2 57 — — 2 62 (Credit) provision for loan losses (2,263) (202) 843 343 (34) 92 (1,221) Ending balance, March 31, 2022 $ 16,572 $ 2,339 $ 4,857 $ 6,476 $ 1,435 $ 106 $ 31,785 At or For The Year Ended December 31, 2022 Beginning balance, December 31, 2021 $ 18,834 $ 2,539 $ 4,202 $ 6,133 $ 1,469 $ 79 $ 33,256 Charge-offs — — (1,042) (66) — (134) (1,242) Recoveries 3 2 379 — 87 7 478 (Credit) provision for loan losses (1,541) (179) 1,907 3,022 669 552 4,430 Ending balance, December 31, 2022 $ 17,296 $ 2,362 $ 5,446 $ 9,089 $ 2,225 $ 504 $ 36,922 |
Credit Risk Exposure Indicators by Portfolio Segment | Based on the most recent analysis performed, the risk category of loans by portfolio segment by vintage was as follows as of the dates indicated: (In thousands) 2023 2022 2021 2020 2019 Prior Revolving Loans Revolving Loans Total As of and for the period ended March 31, 2023 Commercial real estate - non-owner-occupied Risk rating Pass (Grades 1-6) $ 32,495 $ 348,906 $ 292,459 $ 158,884 $ 123,148 $ 343,942 $ — $ — $ 1,299,834 Special mention (Grade 7) — — 166 356 252 388 — — 1,162 Substandard (Grade 8) — 177 123 1,255 200 26,042 — — 27,797 Doubtful (Grade 9) — — — — — — — — — Total commercial real estate - non-owner-occupied $ 32,495 $ 349,083 $ 292,748 $ 160,495 $ 123,600 $ 370,372 $ — $ — $ 1,328,793 Gross charge-offs for the three months ended $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate - owner-occupied Risk rating Pass (Grades 1-6) $ 17,730 $ 54,516 $ 79,464 $ 27,889 $ 21,962 $ 106,937 $ — $ — $ 308,498 Special mention (Grade 7) — — — — — 404 — — 404 Substandard (Grade 8) — 8 2,228 — 19,993 6,693 — — 28,922 Doubtful (Grade 9) — — — — — — — — — Total commercial real estate - owner occupied $ 17,730 $ 54,524 $ 81,692 $ 27,889 $ 41,955 $ 114,034 $ — $ — $ 337,824 Gross charge-offs for the three months ended $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial Risk rating Pass (Grades 1-6) $ 13,993 $ 68,567 $ 66,044 $ 30,359 $ 31,455 $ 45,211 $ 130,278 $ 30,254 $ 416,161 Special mention (Grade 7) — — — 87 114 180 200 10 591 Substandard (Grade 8) 192 229 88 134 267 1,906 692 839 4,347 Doubtful (Grade 9) — — — — — — — — — Total commercial $ 14,185 $ 68,796 $ 66,132 $ 30,580 $ 31,836 $ 47,297 $ 131,170 $ 31,103 $ 421,099 Gross charge-offs for the three months ended $ — $ — $ 51 $ 9 $ — $ 172 $ 20 $ 60 $ 312 Residential Real Estate Risk rating Pass (Grades 1-6) $ 47,241 $ 544,518 $ 572,505 $ 236,212 $ 77,364 $ 252,040 $ 347 $ — $ 1,730,227 Special mention (Grade 7) — — — — — — — — — Substandard (Grade 8) — — — — 92 2,828 — — 2,920 Doubtful (Grade 9) — — — — — — — — — Total residential real estate $ 47,241 $ 544,518 $ 572,505 $ 236,212 $ 77,456 $ 254,868 $ 347 $ — $ 1,733,147 Gross charge-offs for the three months ended $ — $ — $ — $ — $ — $ 18 $ — $ — $ 18 Home equity Risk rating Performing $ 3,926 $ 25,674 $ 564 $ 338 $ 4,655 $ 15,125 $ 170,075 $ 11,717 $ 232,074 Non-performing — — — — — 12 347 79 438 Total home equity $ 3,926 $ 25,674 $ 564 $ 338 $ 4,655 $ 15,137 $ 170,422 $ 11,796 $ 232,512 Gross charge-offs for the three months ended $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer Risk rating Performing $ 1,441 $ 7,204 $ 3,359 $ 1,455 $ 826 $ 2,662 $ 2,786 $ — $ 19,733 Non-performing — — — — — — — — — Total consumer $ 1,441 $ 7,204 $ 3,359 $ 1,455 $ 826 $ 2,662 $ 2,786 $ — $ 19,733 Gross charge-offs for the three months ended $ — $ — $ — $ — $ — $ 4 $ — $ — $ 4 (In thousands) 2022 2021 2020 2019 2018 Prior Revolving Loans Revolving Loans Total As of December 31, 2022 Commercial real estate - non-owner-occupied Risk rating Pass (Grades 1-6) $ 339,171 $ 287,749 $ 160,621 $ 125,029 $ 108,823 $ 242,024 $ — $ — $ 1,263,417 Special mention (Grade 7) — 167 364 259 75 321 — — 1,186 Substandard (Grade 8) — 127 1,306 203 7,798 18,406 — — 27,840 Doubtful (Grade 9) — — — — — — — — — Total commercial real estate - non-owner-occupied $ 339,171 $ 288,043 $ 162,291 $ 125,491 $ 116,696 $ 260,751 $ — $ — $ 1,292,443 Commercial real estate - owner-occupied Risk rating Pass (Grades 1-6) $ 60,127 $ 80,781 $ 28,378 $ 23,381 $ 39,554 $ 70,568 $ — $ — $ 302,789 Special mention (Grade 7) — 2,053 — 19,992 — 411 — — 22,456 Substandard (Grade 8) 17 — — — 3,266 3,966 — — 7,249 Doubtful (Grade 9) — — — — — — — — — Total commercial real estate - owner occupied $ 60,144 $ 82,834 $ 28,378 $ 43,373 $ 42,820 $ 74,945 $ — $ — $ 332,494 Commercial Risk rating Pass (Grades 1-6) $ 73,537 $ 70,110 $ 32,272 $ 33,491 $ 22,271 $ 26,245 $ 135,157 $ 30,191 $ 423,274 Special mention (Grade 7) — — 93 141 70 189 1,196 12 1,701 Substandard (Grade 8) 149 52 133 216 846 1,524 50 2,186 5,156 Doubtful (Grade 9) — — — — — — — — — Total commercial $ 73,686 $ 70,162 $ 32,498 $ 33,848 $ 23,187 $ 27,958 $ 136,403 $ 32,389 $ 430,131 Residential Real Estate Risk rating Pass (Grades 1-6) $ 533,035 $ 579,216 $ 244,691 $ 79,492 $ 50,214 $ 210,262 $ 340 $ — $ 1,697,250 Special mention (Grade 7) — — — — — 23 — — 23 Substandard (Grade 8) — — — — 163 2,830 — — 2,993 Doubtful (Grade 9) — — — — — — — — — Total residential real estate $ 533,035 $ 579,216 $ 244,691 $ 79,492 $ 50,377 $ 213,115 $ 340 $ — $ 1,700,266 Home equity Risk rating Performing $ 26,712 $ 693 $ 341 $ 4,842 $ 7,730 $ 8,551 $ 173,338 $ 11,735 $ 233,942 Non-performing — — — — — 27 377 82 486 Total home equity $ 26,712 $ 693 $ 341 $ 4,842 $ 7,730 $ 8,578 $ 173,715 $ 11,817 $ 234,428 Consumer Risk rating Performing $ 8,009 $ 3,816 $ 1,702 $ 1,188 $ 345 $ 2,462 $ 3,069 $ — $ 20,591 Non-performing — — — — — — — — — Total consumer $ 8,009 $ 3,816 $ 1,702 $ 1,188 $ 345 $ 2,462 $ 3,069 $ — $ 20,591 |
Loan Aging Analysis by Portfolio Segment | The following is a loan aging analysis by portfolio segment (including loans past due over 90 days and non-accrual loans) and loans past due over 90 days and accruing as of the following dates: (In thousands) 30-59 Days 60-89 Days 90 Days or Greater Total Current Total Loans Loans > 90 March 31, 2023 Commercial real estate - non-owner-occupied $ 34 $ — $ 10 $ 44 $ 1,328,749 $ 1,328,793 $ — Commercial real estate - owner-occupied 77 — 47 124 337,700 337,824 Commercial 965 79 465 1,509 419,590 421,099 — Residential real estate 283 194 459 936 1,732,211 1,733,147 — Home equity 552 106 151 809 231,703 232,512 — Consumer 32 29 — 61 19,672 19,733 — Total $ 1,943 $ 408 $ 1,132 $ 3,483 $ 4,069,625 $ 4,073,108 $ — December 31, 2022 Commercial real estate - non-owner-occupied $ 267 $ — $ 11 $ 278 $ 1,292,165 $ 1,292,443 $ — Commercial real estate - owner-occupied 55 — 47 102 332,392 332,494 — Commercial 667 134 640 1,441 428,690 430,131 — Residential real estate 852 186 524 1,562 1,698,704 1,700,266 — Home equity 357 — 171 528 233,900 234,428 — Consumer 23 11 — 34 20,557 20,591 — Total $ 2,221 $ 331 $ 1,393 $ 3,945 $ 4,006,408 $ 4,010,353 $ — |
Financing Receivable, Nonaccrual | The following table presents the amortized cost basis of loans on non-accrual status (including non-accruing TDRs prior to adoption of ASU 2022-02) by portfolio segment as of the dates indicated: March 31, December 31, (In thousands) Non-Accrual Loans With an Allowance Non-Accrual Loans Without an Allowance Total Non-Accrual Loans Non-Accrual Loans With an Allowance Non-Accrual Loans Without an Allowance Total Non-Accrual Loans Commercial real estate - non-owner-occupied $ — $ 10 $ 10 $ — $ 11 $ 11 Commercial real estate - owner-occupied — 47 47 — 46 46 Commercial 606 142 748 415 300 715 Residential real estate 1,359 356 1,715 1,314 419 1,733 Home equity 377 61 438 421 65 486 Consumer — — — — — — Total $ 2,342 $ 616 $ 2,958 $ 2,150 $ 841 $ 2,991 The following table presents the amortized cost basis of collateral-dependent non-accrual loans (including non-accruing TDRs prior to adoption of ASU 2022-02) by portfolio segment and collateral type, as of the dates indicated: March 31, December 31, Collateral Type Total Collateral -Dependent Collateral Type Total Collateral -Dependent (In thousands) Real Estate General Business Assets Real Estate General Business Assets Residential real estate $ 325 $ — $ 325 $ 387 $ — $ 387 Home equity — — — — — — Total $ 325 $ — $ 325 $ 387 $ — $ 387 |
Troubled Debt Restructuring and Specific Reserve Related to TDRs | The following is a summary of TDRs prior to adoption of ASU 2022-02, by portfolio segment, and the associated specific reserve included within the ACL as of December 31, 2022: Number of Contracts Recorded Investment Specific Reserve (In thousands, except number of contracts) December 31, December 31, December 31, Commercial real estate - owner-occupied 1 $ 113 $ 50 Commercial — — — Residential real estate 18 2,208 $ 307 Consumer and home equity 3 245 9 Total 22 $ 2,566 $ 366 |
Troubled Debt Restructuring | The following represents loan modifications that qualify as TDRs as of December 31, 2022 that occurred during the period indicated: Number of Contracts Pre-Modification Post-Modification Specific Reserve (In thousands, except number of contracts) December 31, December 31, December 31, December 31, Home equity: Interest rate concession and payment deferral — $ — $ — $ — Maturity concession 1 69 96 — Total 1 $ 69 $ 96 $ — |
BORROWINGS (Tables)
BORROWINGS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowed Funds Outstanding | The following summarizes the Company's short-term borrowed funds as presented on the consolidated statements of condition as of the dates indicated. The Company did not have any long-term borrowings as of the dates indicated. (In thousands) March 31, December 31, Short-Term Borrowings: Customer repurchase agreements $ 196,918 $ 196,451 Overnight borrowings 189,400 18,725 FHLBB borrowings 100,000 50,000 Total short-term borrowings $ 486,318 $ 265,176 |
REPURCHASE AGREEMENTS (Tables)
REPURCHASE AGREEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Banking and Thrift, Other Disclosure [Abstract] | |
Schedule of Underlying Assets of Repurchase Agreements when Amount of Repurchase Agreements Exceeds 10 Percent of Assets | The table below sets forth information regarding the Company’s repurchase agreements accounted for as secured borrowings and types of collateral as of the dates indicated: (In thousands) March 31, December 31, Customer Repurchase Agreements (1)(2) : Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises $ 174,276 $ 99,105 Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 22,642 94,328 Obligations of states and political subdivisions — 3,018 Total $ 196,918 $ 196,451 (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_2
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Contractual And Notional Amounts Of Financial Instruments Table | The following is a summary of the Company's contractual off-balance sheet commitments as of the dates indicated: (In thousands) March 31, December 31, Commitments to extend credit $ 779,402 $ 817,772 Standby letters of credit 6,769 6,801 Total $ 786,171 $ 824,573 |
DERIVATIVES AND HEDGING (Tables
DERIVATIVES AND HEDGING (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Derivative Financial Instruments | The following table presents the fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition as of the dates indicated: Derivative Assets Derivative Liabilities (Dollars in thousands) Notional Location Fair Notional Location Fair March 31, 2023 Derivatives designated as hedging instruments: Interest rate contracts (1) $ 60,000 Other assets $ 10,996 $ 433,000 Accrued interest and other liabilities $ 6,859 Total derivatives designated as hedging instruments $ 10,996 $ 6,859 Derivatives not designated as hedging instruments: Customer loan swaps (1) $ 288,076 Other assets $ 11,479 $ 288,076 Accrued interest and other liabilities $ 11,554 Risk participation agreements 21,696 Other assets — 44,127 Accrued interest and other liabilities — Fixed rate mortgage interest rate lock commitments 6,883 Other assets 71 5,843 Accrued interest and other liabilities 43 Forward delivery commitments 2,887 Other assets 32 1,651 Accrued interest and other liabilities 14 Total derivatives not designated as hedging instruments $ 11,582 $ 11,611 December 31, 2022 Derivatives designated as hedging instruments: Interest rate contracts (1) $ 110,000 Other assets $ 13,051 $ 133,000 Accrued interest and other liabilities $ 5,515 Total derivatives designated as hedging instruments $ 13,051 $ 5,515 Derivatives not designated as hedging instruments: Customer loan swaps (1) $ 260,130 Other assets $ 14,802 $ 345,545 Accrued interest and other liabilities $ 14,850 Risk participation agreements 21,818 Other assets — 53,704 Accrued interest and other liabilities — Fixed rate mortgage interest rate lock commitments 4,493 Other assets 31 9,597 Accrued interest and other liabilities 87 Forward delivery commitments 5,259 Other assets 114 — Accrued interest and other liabilities — Total derivatives not designated as hedging instruments $ 14,947 $ 14,937 (1) Reported fair values include accrued interest receivable and payable. The following table shows the carrying amount and associated cumulative basis adjustments related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships: Location in Consolidated Statements of Condition Carrying Amount of Hedged Assets/(Liabilities) Cumulative Fair Value Hedging Adjustment in the Carrying Amount of the Hedged Assets/(Liabilities) (Dollars in thousands) March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Loans (1) $ 301,552 $ — $ (1,552) $ — Total $ 301,552 $ — $ (1,552) $ — (1) These amounts include the amortized cost basis of closed portfolios of fixed rate assets used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. At March 31, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $853.7 million and the amounts of the designated hedged items were $300.0 million. |
Schedule of Cash Flow Hedging Instruments, Location | The table below presents the effect of cash flow hedge accounting, before tax, on AOCI for the periods indicated: (Dollars in thousands) Amount of Gain (Loss) Recognized in OCI on Derivative Amount of Gain (Loss) Recognized in OCI Included Component Amount of Gain (Loss) Recognized in OCI Excluded Component Location of Gain (Loss) Recognized Amount of Gain (Loss) Reclassified from AOCI into Income Amount of Gain (Loss) Reclassified from AOCI into Income Included Component Amount of Gain (Loss) Reclassified from AOCI into Income Excluded Component For the Three Months Ended March 31, 2023 Interest rate contracts $ 182 $ 182 $ — Interest and fees on loans $ (717) $ (717) $ — Interest rate contracts (1) (1) — Interest on deposits 306 306 — Interest rate contracts (796) (796) — Interest on borrowings 487 487 — Interest rate contracts (934) (934) — Interest on junior subordinated debentures 133 133 — Total $ (1,549) $ (1,549) $ — $ 209 $ 209 $ — For the Three Months Ended March 31, 2022 Interest rate contracts $ (3,011) $ (3,011) $ — Interest and fees on loans $ 382 $ 382 $ — Interest rate contracts 3,488 3,488 — Interest on deposits (149) (149) — Interest rate contracts 3,158 3,158 Interest on junior subordinated debentures (351) (351) Total $ 3,635 $ 3,635 $ — $ (118) $ (118) $ — The table below presents the effect of fair value and cash flow hedge accounting on the consolidated statements of income for the periods indicated: Location and Amount of Gain (Loss) Recognized in Income Three Months Ended March 31, 2023 2022 (Dollars in thousands) Interest and fees on loans Interest on deposits Interest on borrowings Interest on junior subordinated debentures Interest and fees on loans Interest on deposits Interest on junior subordinated debentures Total presented on the consolidated statements of income in which the effects of cash flow hedges are recorded $ 45,332 $ 15,832 $ 2,085 $ 528 $ 32,035 $ 1,833 $ 529 Gain (loss) on fair value hedging relationships Interest rate contracts: Hedged items $ 1,552 $ — $ — $ — $ — $ — $ — Derivatives designated as hedging instruments $ (1,077) $ — $ — $ — $ — $ — $ — Gain (loss) on cash flow hedging relationships Interest rate contracts: Amount of gain (loss) reclassified from AOCI into income $ (717) $ 306 $ 487 $ 133 $ 382 $ (149) $ (351) Amount of gain (loss) reclassified from AOCI into income - included component $ (717) $ 306 $ 487 $ 133 $ 382 $ (149) $ (351) Amount of gain (loss) reclassified from AOCI into income - excluded component $ — $ — $ — $ — $ — $ — $ — |
Schedule of Derivatives Not Designated as Hedging Instruments | The table below presents the effect of the Company's derivative financial instruments that are not designated as hedging instruments on the consolidated statements of income for the periods indicated: Location of Gain (Loss) Recognized in Income Amount of Gain (Loss) Three Months Ended (Dollars in thousands) 2023 2022 Customer loan swaps Other expense $ (27) $ 94 Fixed rate mortgage interest rate lock commitments Mortgage banking income, net 84 (459) Forward delivery commitments Mortgage banking income, net (96) 166 Total $ (39) $ (199) |
BALANCE SHEET OFFSETTING (Table
BALANCE SHEET OFFSETTING (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 financial position, as of the dates indicated: Gross Amount Not Offset in the Consolidated Statements of Condition (Dollars 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 March 31, 2023 Derivative assets: Customer loan swaps - commercial customer (2) $ 11,479 $ — $ 11,479 $ — $ — $ 11,479 Interest rate contracts (3) 10,996 — 10,996 — (10,889) 107 Total $ 22,475 $ — $ 22,475 $ — $ (10,889) $ 11,586 Derivative liabilities: Customer loan swaps - dealer bank (3) $ 11,554 $ — $ 11,554 $ — $ — $ 11,554 Interest rate contracts (3) 6,859 — 6,859 — 6,859 — Total $ 18,413 $ — $ 18,413 $ — $ 6,859 $ 11,554 Customer repurchase agreements $ 196,918 $ — $ 196,918 $ 196,918 $ — $ — December 31, 2022 Derivative assets: Customer loan swaps - dealer bank (3) $ 14,802 $ — $ 14,802 $ — $ — $ 14,802 Interest rate contracts (3) 13,051 — 13,051 — (10,915) 2,136 Total $ 27,853 $ — $ 27,853 $ — $ (10,915) $ 16,938 Derivative liabilities: Customer loan swaps - commercial customer (2) $ 14,850 $ — 14,850 $ — $ — $ 14,850 Interest rate contracts (3) 5,515 — 5,515 — 5,515 — Total $ 20,365 $ — $ 20,365 $ — $ 5,515 $ 14,850 Customer repurchase agreements $ 196,451 $ — $ 196,451 $ 196,451 $ — $ — (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. The Company does not post collateral to its commercial customers as part of its contract.. (3) Interest rate swap contracts were completed with the same dealer bank. The Company maintains a master netting arrangement with each counterparty and settles collateral on a net basis for all contracts |
Offsetting Liabilities | The following table presents the Company's derivative positions and repurchase agreements, and the potential effect of netting arrangements on its financial position, as of the dates indicated: Gross Amount Not Offset in the Consolidated Statements of Condition (Dollars 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 March 31, 2023 Derivative assets: Customer loan swaps - commercial customer (2) $ 11,479 $ — $ 11,479 $ — $ — $ 11,479 Interest rate contracts (3) 10,996 — 10,996 — (10,889) 107 Total $ 22,475 $ — $ 22,475 $ — $ (10,889) $ 11,586 Derivative liabilities: Customer loan swaps - dealer bank (3) $ 11,554 $ — $ 11,554 $ — $ — $ 11,554 Interest rate contracts (3) 6,859 — 6,859 — 6,859 — Total $ 18,413 $ — $ 18,413 $ — $ 6,859 $ 11,554 Customer repurchase agreements $ 196,918 $ — $ 196,918 $ 196,918 $ — $ — December 31, 2022 Derivative assets: Customer loan swaps - dealer bank (3) $ 14,802 $ — $ 14,802 $ — $ — $ 14,802 Interest rate contracts (3) 13,051 — 13,051 — (10,915) 2,136 Total $ 27,853 $ — $ 27,853 $ — $ (10,915) $ 16,938 Derivative liabilities: Customer loan swaps - commercial customer (2) $ 14,850 $ — 14,850 $ — $ — $ 14,850 Interest rate contracts (3) 5,515 — 5,515 — 5,515 — Total $ 20,365 $ — $ 20,365 $ — $ 5,515 $ 14,850 Customer repurchase agreements $ 196,451 $ — $ 196,451 $ 196,451 $ — $ — (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. The Company does not post collateral to its commercial customers as part of its contract.. (3) Interest rate swap contracts were completed with the same dealer bank. The Company maintains a master netting arrangement with each counterparty and settles collateral on a net basis for all contracts |
REGULATORY CAPITAL REQUIREMEN_2
REGULATORY CAPITAL REQUIREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following table presents the Company and Bank's regulatory capital ratios at the periods indicated: March 31, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer Minimum Regulatory Provision to Be "Well Capitalized" December 31, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer Minimum Regulatory Provision to Be "Well Capitalized" (Dollars in thousands) Amount Ratio Amount Ratio Camden National Corporation: Total risk-based capital ratio $ 564,967 13.95 % 10.50 % 10.00 % $ 557,571 13.80 % 10.50 % 10.00 % Tier 1 risk-based capital ratio 524,843 12.96 % 8.50 % 6.00 % 517,385 12.81 % 8.50 % 6.00 % Common equity Tier 1 risk-based capital ratio (1) 481,843 11.90 % 7.00 % N/A 474,385 11.74 % 7.00 % N/A Tier 1 leverage capital ratio (1) 524,843 9.24 % 4.00 % N/A 517,385 9.22 % 4.00 % N/A Camden National Bank: Total risk-based capital ratio $ 532,658 13.18 % 10.50 % 10.00 % $ 525,346 13.03 % 10.50 % 10.00 % Tier 1 risk-based capital ratio 492,534 12.19 % 8.50 % 8.00 % 485,160 12.03 % 8.50 % 8.00 % Common equity Tier 1 risk-based capital ratio 492,534 12.19 % 7.00 % 6.50 % 485,160 12.03 % 7.00 % 6.50 % Tier 1 leverage capital ratio 492,534 8.68 % 4.00 % 5.00 % 485,160 8.65 % 4.00 % 5.00 % (1) “Minimum Regulatory Provisions to Be ‘Well Capitalized’” are not formally defined under applicable banking regulations for bank holding companies. |
OTHER COMPREHENSIVE INCOME (L_2
OTHER COMPREHENSIVE INCOME (LOSS) OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of 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 Three Months Ended March 31, 2023 March 31, 2022 (In thousands) Pre-Tax Tax (Expense) After-Tax Pre-Tax Tax (Expense) After-Tax Debt Securities: Change in fair value $ 9,885 $ (2,125) $ 7,760 $ (92,753) $ 19,942 $ (72,811) Less: reclassification adjustment for amortization of securities transferred from AFS to HTM (1) (1,699) 365 (1,334) — — — Net change in fair value 11,584 (2,490) 9,094 (92,753) 19,942 (72,811) Cash Flow Hedges: Change in fair value (3,109) 668 (2,441) 3,635 (782) 2,853 Less: reclassified AOCI gain (loss) into interest expense (2) 926 (199) 727 (500) 108 (392) Less: reclassified AOCI (loss) gain into interest income (3) (717) 154 (563) 382 (82) 300 Net change in fair value (3,318) 713 (2,605) 3,753 (808) 2,945 Postretirement Plans: Amortization of settlement recognition of net loss and prior service credit (4) (6) 1 (5) 232 (50) 182 Other comprehensive income (loss) $ 8,260 $ (1,776) $ 6,484 $ (88,768) $ 19,084 $ (69,684) (1) Reclassified into taxable interest on investments and/or nontaxable interest on investments in the consolidated statements of income. Refer to Note 3 of the consolidated financial statements for further details. (2) Reclassified into interest on deposits, borrowings and/or subordinated debentures on the consolidated statements of income. Refer to Note 8 of the consolidated financial statements for further details. (3) Reclassified into interest and fees on loans on the consolidated statements of income. Refer to Note 8 of the consolidated financial statements for further details. (4) Reclassified into other expenses on the consolidated statements of income. Refer to Note 13 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, after tax, for the periods indicated: (In thousands) Net Unrealized Gains (Losses) on Debt Securities (1) Net Unrealized (Losses) Gains on Cash Flow Hedges (1) Defined Benefit Postretirement Plans (1) AOCI (1) Balance at December 31, 2022 $ (131,539) $ 5,891 $ (307) $ (125,955) Other comprehensive income (loss) before reclassifications 7,760 (2,441) — 5,319 Less: Amounts reclassified from AOCI (1,334) 164 5 (1,165) Other comprehensive income (loss) 9,094 (2,605) (5) 6,484 Balance at March 31, 2023 $ (122,445) $ 3,286 $ (312) $ (119,471) Balance at December 31, 2021 $ (1,173) $ (1,779) $ (3,277) $ (6,229) Other comprehensive (loss) income before reclassifications (72,811) 2,853 — (69,958) Less: Amounts reclassified from AOCI — (92) (182) (274) Other comprehensive (loss) income (72,811) 2,945 182 (69,684) Balance at March 31, 2022 $ (73,984) $ 1,166 $ (3,095) $ (75,913) (1) All amounts are net of tax |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the revenue streams within the scope of ASC 606 for the periods indicated: Location on Consolidated Statements of Income Three Months Ended (In thousands) 2023 2022 Debit card interchange income Debit card income $ 2,938 $ 2,924 Services charges on deposit accounts Service charges on deposit accounts 1,762 1,833 Fiduciary services income Income from fiduciary services 1,600 1,631 Investment program income Brokerage and insurance commissions 1,093 994 Other non-interest income Other income 422 400 Total non-interest income within the scope of ASC 606 7,815 7,782 Total non-interest income not in scope of ASC 606 2,051 2,043 Total non-interest income $ 9,866 $ 9,825 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Components of Net Period Benefit Cost | The components of net periodic pension and postretirement benefit costs were as follows for the following periods: Supplemental Executive Retirement Plan: (In thousands) Location on Consolidated Statements of Income Three Months Ended Net periodic pension cost 2023 2022 Service cost Salaries and employee benefits $ 70 $ 133 Interest cost Other expenses 189 115 Recognized net actuarial loss Other expenses — 216 Total $ 259 $ 464 Other Postretirement Benefit Plan: (In thousands) Location on Consolidated Statements of Income Three Months Ended Net periodic postretirement benefit cost 2023 2022 Service cost Salaries and employee benefits $ 3 $ 5 Interest cost Other expenses 40 28 Recognized net actuarial (gain) loss Other expenses (1) 22 Amortization of prior service credit Other expenses (6) (6) Total $ 36 $ 49 |
EPS (Tables)
EPS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Analysis of Basic and Diluted Earnings Per Share | The following is an analysis of basic and diluted EPS, reflecting the application of the two-class method, as described below: Three Months Ended (In thousands, except number of shares and per share data) 2023 2022 Net income $ 12,727 $ 16,795 Dividends and undistributed earnings allocated to participating securities (1) (25) (43) Net income available to common shareholders $ 12,702 $ 16,752 Weighted-average common shares outstanding for basic EPS 14,573,122 14,741,271 Dilutive effect of stock-based awards (2) 58,420 81,061 Weighted-average common and potential common shares for diluted EPS 14,631,542 14,822,332 Earnings per common share: Basic EPS $ 0.87 $ 1.14 Diluted EPS $ 0.87 $ 1.13 Awards excluded from the calculation of diluted EPS (3) : Performance-based awards 1,141 1,027 (1) Represents dividends paid and undistributed earnings allocated to non-vested stock-based awards that contain non-forfeitable rights to dividends. (2) Represents the assumed dilutive effect of unexercised and/or unvested stock options, restricted shares, restricted share units and contingently issuable performance-based awards utilizing the treasury stock method. (3) Represents stock-based awards not included in the computation of potential common shares for purposes of calculating diluted EPS as the exercise prices were greater than the average market price of the Company's common stock, and, therefore, are considered anti-dilutive. |
FAIR VALUE MEASUREMENT AND DI_2
FAIR VALUE MEASUREMENT AND DISCLOSURE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 Readily Observable Company March 31, 2023 Financial assets: Trading securities $ 3,971 $ 3,971 $ — $ — AFS debt securities: Obligations of states and political subdivisions 49,051 — 49,051 — Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 507,831 — 507,831 — Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 106,233 — 106,233 — Subordinated corporate bonds 23,308 — 23,308 — Loans held for sale 4,562 — 4,562 — Customer loan swaps 11,479 — 11,479 — Interest rate contracts 10,996 — 10,996 — Fixed rate mortgage interest rate lock commitments 71 — 71 — Forward delivery commitments 32 — 32 — Financial liabilities: Deferred compensation $ 3,971 $ 3,971 $ — $ — Customer loan swaps 11,554 — 11,554 — Interest rate contracts 6,859 — 6,859 — Fixed rate mortgage interest rate lock commitments 43 — 43 — Forward delivery commitments 14 — 14 — December 31, 2022 Financial assets: Trading securities $ 3,990 $ 3,990 $ — $ — AFS debt securities: Obligations of states and political subdivisions 49,226 — 49,226 — Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises 514,019 — 514,019 — Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises 109,347 — 109,347 — Subordinated corporate bonds 23,283 — 23,283 — Loans held for sale 5,197 — 5,197 — Customer loan swaps 14,802 — 14,802 — Interest rate contracts 13,051 — 13,051 — Fixed rate mortgage interest rate lock commitments 31 — 31 — Forward delivery commitments 114 — 114 — Financial liabilities: Deferred compensation $ 3,990 $ 3,990 $ — $ — Customer loan swaps 14,850 — 14,850 — Interest rate contracts 5,515 — 5,515 — Fixed rate mortgage interest rate lock commitments 87 — 87 — |
Valuation Methodology and Unobservable Inputs for Level Three Assets Measured at Fair Value on Non Recurring Basis | |
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: Carrying Fair Value Readily Observable Company March 31, 2023 Financial assets: HTM debt securities $ 540,074 $ 510,999 $ — $ 510,999 $ — Commercial real estate loans (1)(2) 1,647,823 1,586,974 — — 1,586,974 Commercial loans (2) 416,518 405,429 — — 404,847 Residential real estate loans (2) 1,722,335 1,509,387 — — 1,509,387 Home equity loans (2) 230,072 228,821 — — 228,821 Consumer loans (2) 19,226 16,993 — — 16,993 Servicing assets 2,413 4,187 — — 4,187 Financial liabilities: Time deposits $ 360,103 $ 351,795 $ — $ 351,795 $ — Short-term borrowings 486,318 485,505 — 485,505 — Subordinated debentures 44,331 31,918 — 31,918 — December 31, 2022 Financial assets: HTM debt securities $ 546,583 $ 506,193 $ — $ 506,193 $ — Commercial real estate loans (1)(2) 1,605,279 1,550,379 — — 1,550,379 Commercial loans (2) 424,685 414,353 — — 414,353 Residential real estate loans (2) 1,691,177 1,494,707 — — 1,494,707 Home equity loans (2) 232,203 237,967 — — 237,967 Consumer loans (2) 20,087 17,853 — — 17,853 Servicing assets 2,458 4,412 — — 4,412 Financial liabilities: Time deposits $ 300,451 $ 291,568 $ — $ 291,568 $ — Short-term borrowings 265,176 264,779 — 264,779 — Subordinated debentures 44,331 31,032 — 31,032 — (1) Commercial real estate loan includes non-owner-occupied and owner-occupied properties. (2) The presented carrying amount is net of the allocated ACL on loans. |
INVESTMENTS (Narrative) (Detail
INVESTMENTS (Narrative) (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Jun. 30, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Schedule of Investments [Line Items] | ||||
Trading securities | $ 3,971 | $ 3,990 | ||
AFS debt securities, allowance | 0 | 0 | ||
Net unrealized loss on debt securities, net of tax | 71,600 | 79,400 | ||
Deferred tax assets, unrealized losses on available for sale securities | 19,600 | 21,700 | ||
Provision for credit losses, HTM debt securities | 1,800 | $ 0 | ||
Write off, accrued interest, HTM debt securities | 8 | |||
HTM debt securities, allowance | 0 | 0 | ||
HTM debt securities, excluding accrued interest from amortized cost | 1,500 | 1,700 | ||
Asset Pledged as Collateral | ||||
Schedule of Investments [Line Items] | ||||
AFS and HTM debt securities, amortized cost | 630,200 | 821,900 | ||
AFS and HTM debt securities, fair value | 560,300 | 726,500 | ||
Available-for-sale Securities | ||||
Schedule of Investments [Line Items] | ||||
Interest receivable | 2,000 | 1,900 | ||
Transferred Securities | ||||
Schedule of Investments [Line Items] | ||||
AFS debt securities transferred to HTM, fair value | $ 520,300 | |||
AFS debt securities, transfer, unrealized loss | $ 72,100 | |||
Net unrealized loss on debt securities, net of tax | (50,900) | (52,200) | ||
Deferred tax assets, unrealized losses on available for sale securities | $ 13,900 | $ 14,300 |
INVESTMENTS (Summary of Amortiz
INVESTMENTS (Summary of Amortized Costs and Estimated Fair Values of Available-For-Sale Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost, Total | $ 777,621 | $ 796,960 |
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 686,423 | 695,875 |
Obligations of states and political subdivisions | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost, Total | 49,142 | 49,678 |
Unrealized Gains | 41 | 11 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 132 | 463 |
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 49,051 | 49,226 |
MBS issued or guaranteed by U.S. government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost, Total | 585,249 | 598,845 |
Unrealized Gains | 214 | 131 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 77,632 | 84,957 |
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 507,831 | 514,019 |
CMO issued or guaranteed by U.S. government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost, Total | 117,552 | 122,760 |
Unrealized Gains | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 11,319 | 13,413 |
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 106,233 | 109,347 |
Subordinated corporate bonds | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost, Total | 25,678 | 25,677 |
Unrealized Gains | 0 | 3 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 2,370 | 2,397 |
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 23,308 | 23,283 |
Total AFS debt securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized Cost, Total | 777,621 | 796,960 |
Unrealized Gains | 255 | 145 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 91,453 | 101,230 |
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | $ 686,423 | $ 695,875 |
INVESTMENTS (Schedule of Unreal
INVESTMENTS (Schedule of Unrealized Gross Losses and Estimated Fair values of Investment Securities) (Details) $ in Thousands | Mar. 31, 2023 USD ($) security | Dec. 31, 2022 USD ($) security |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security | 302 | 335 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 31,146 | $ 215,593 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 596 | 16,957 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 620,101 | 457,955 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (90,857) | (84,273) |
Debt Securities, Available-for-sale, Unrealized Loss Position, Total | 651,247 | 673,548 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | $ 91,453 | $ 101,230 |
Obligations of states and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security | 54 | 83 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 19,151 | $ 42,276 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 48 | 463 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 10,384 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (84) | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Total | 29,535 | 42,276 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | $ 132 | $ 463 |
MBS issued or guaranteed by U.S. government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security | 172 | 175 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 3,310 | $ 118,290 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 80 | 11,521 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 488,861 | 381,355 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (77,552) | (73,436) |
Debt Securities, Available-for-sale, Unrealized Loss Position, Total | 492,171 | 499,645 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | $ 77,632 | $ 84,957 |
CMO issued or guaranteed by U.S. government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security | 62 | 64 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 2,506 | $ 47,340 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 56 | 4,589 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 103,727 | 62,007 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (11,263) | (8,824) |
Debt Securities, Available-for-sale, Unrealized Loss Position, Total | 106,233 | 109,347 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | $ 11,319 | $ 13,413 |
Subordinated corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security | 14 | 13 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 6,179 | $ 7,687 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 412 | 384 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 17,129 | 14,593 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (1,958) | (2,013) |
Debt Securities, Available-for-sale, Unrealized Loss Position, Total | 23,308 | 22,280 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | $ 2,370 | $ 2,397 |
INVESTMENTS (Schedule of Amorti
INVESTMENTS (Schedule of Amortized Cost and Estimated Fair Values of Debt Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Available-for-sale, Amortized Cost | ||
Due in one year or less | $ 1,002 | |
Due after one year through five years | 13,612 | |
Due after five years through ten years | 60,206 | |
Due after ten years | 0 | |
Subtotal | 74,820 | |
Mortgage-related securities | 702,801 | |
Available-for-sale securities, book value | 777,621 | $ 796,960 |
Available-for-sale, Fair Value | ||
Due in one year or less | 1,003 | |
Due after one year through five years | 12,323 | |
Due after five years through ten years | 59,032 | |
Due after ten years | 0 | |
Subtotal | 72,358 | |
Mortgage-related securities | 614,065 | |
Fair value, total | $ 686,423 | $ 695,875 |
INVESTMENTS (Summary of Amort_2
INVESTMENTS (Summary of Amortized Cost and Fair Value of Held to Maturity Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Investments [Line Items] | ||
Held-to-maturity securities, at amortized cost | $ 540,074 | $ 546,583 |
Unrealized Gains | 2,290 | 763 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | (31,365) | (41,153) |
Held-to-maturity securities, fair value | 510,999 | 506,193 |
Obligations of U.S. government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Held-to-maturity securities, at amortized cost | 7,491 | 7,457 |
Unrealized Gains | 0 | 0 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | (507) | (777) |
Held-to-maturity securities, fair value | 6,984 | 6,680 |
Debt Securities, Held-to-Maturity, Amortized Cost, Unamortized Unrealized Loss | 1,100 | 1,100 |
Obligations of states and political subdivisions | ||
Schedule of Investments [Line Items] | ||
Held-to-maturity securities, at amortized cost | 56,049 | 55,978 |
Unrealized Gains | 1,683 | 431 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | (760) | (1,610) |
Held-to-maturity securities, fair value | 56,972 | 54,799 |
Debt Securities, Held-to-Maturity, Amortized Cost, Unamortized Unrealized Loss | 6,000 | 6,100 |
MBS issued or guaranteed by U.S. government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Held-to-maturity securities, at amortized cost | 314,589 | 317,406 |
Unrealized Gains | 0 | 0 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | (18,932) | (24,766) |
Held-to-maturity securities, fair value | 295,657 | 292,640 |
Debt Securities, Held-to-Maturity, Amortized Cost, Unamortized Unrealized Loss | 37,400 | 38,400 |
CMO issued or guaranteed by U.S. government-sponsored enterprises | ||
Schedule of Investments [Line Items] | ||
Held-to-maturity securities, at amortized cost | 143,030 | 145,069 |
Unrealized Gains | 0 | 0 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | (10,628) | (13,724) |
Held-to-maturity securities, fair value | 132,402 | 131,345 |
Debt Securities, Held-to-Maturity, Amortized Cost, Unamortized Unrealized Loss | 20,100 | 20,700 |
Subordinated corporate bonds | ||
Schedule of Investments [Line Items] | ||
Held-to-maturity securities, at amortized cost | 18,915 | 20,673 |
Unrealized Gains | 607 | 332 |
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss | (538) | (276) |
Held-to-maturity securities, fair value | 18,984 | 20,729 |
Debt Securities, Held-to-Maturity, Amortized Cost, Unamortized Unrealized Loss | $ 108 | $ 117 |
INVESTMENTS (Amortized Cost and
INVESTMENTS (Amortized Cost and Fair Values of HTM Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Held-to-maturity, Amortized Cost | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 1,285 | |
Due after five years through ten years | 20,527 | |
Due after ten years | 60,643 | |
Due in one year or less | 82,939 | |
Debt Securities, Held-to-Maturity, Amortized Cost, after Allowance for Credit Loss, Maturity, Allocated and Single Maturity Date | 82,455 | |
Debt Securities, Held-to-Maturity, Amortized Cost, after Allowance for Credit Loss, Maturity, without Single Maturity Date | 457,619 | |
Debt Securities, Held-to-maturity, Maturity, without Single Maturity Date, Fair Value | 428,060 | |
Amortized Cost | 540,074 | $ 546,583 |
Held-to-maturity, Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 1,272 | |
Due after five years through ten years | 19,720 | |
Due after ten years | 61,947 | |
Fair value, total | $ 510,999 | $ 506,193 |
INVESTMENTS (Schedule of Amor_2
INVESTMENTS (Schedule of Amortized Cost and Fair Value of Other Investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
FHLBB | $ 14,040 | $ 7,339 |
FRB | 5,374 | 5,374 |
Other Investments, Amortized Cost | $ 19,414 | $ 12,713 |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 USD ($) loan | Mar. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
SBA PPP Loans, Originations, Number of Contracts Outstanding | loan | 5 | 5 | |||
Loans and Leases Receivable, Related Parties, Description | At March 31, 2023 and December 31, 2022, outstanding loans to certain officers, directors and their associated companies were less than 5% of the Company's shareholders' equity. | At March 31, 2023 and December 31, 2022, outstanding loans to certain officers, directors and their associated companies were less than 5% of the Company's shareholders' equity. | |||
Proceeds from the sale of mortgage loans | $ 35,501 | $ 47,771 | |||
Gain on sale of mortgage loans | (384) | (1,132) | |||
Loans held for sale, at fair value (book value of $4,539 and $5,259, respectively) | 4,562 | $ 5,197 | |||
Allowance for Loan and Lease Losses, Period Increase (Decrease) | 200 | ||||
Allowance for credit losses | 37,134 | 31,785 | 36,922 | $ 33,256 | |
(Credit) provision for loan losses | $ 439 | (1,221) | $ 4,430 | ||
Other industry exposures | 0 | ||||
Non-Accrual Loans | $ 2,958 | 2,991 | |||
Loans outstanding | 4,073,108 | 4,010,353 | |||
Interest lost on nonaccrual loans | 25 | 46 | |||
Loans and Leases Receivable, Excluded Accrued Interest from Amortized Cost | 11,000 | 10,300 | |||
Recorded Investment | $ 2,566 | ||||
Loans modified | loan | 0 | ||||
FHLB advances, general debt obligations, pledged collateral | 1,800,000 | $ 1,800,000 | |||
Residential real estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Gross loans | 1,733,147 | 1,700,266 | |||
Allowance for credit losses | 10,812 | 6,476 | 9,089 | 6,133 | |
(Credit) provision for loan losses | 1,737 | 343 | 3,022 | ||
Non-Accrual Loans | 1,715 | 1,733 | |||
Loans outstanding | 1,733,147 | 1,700,266 | |||
Mortgage Loans in Process of Foreclosure, Amount | 450 | 481 | |||
Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Gross loans | 421,099 | 430,131 | |||
Allowance for credit losses | 4,581 | 4,857 | 5,446 | 4,202 | |
(Credit) provision for loan losses | (652) | 843 | 1,907 | ||
Non-Accrual Loans | 748 | 715 | |||
Loans outstanding | 421,099 | 430,131 | |||
Home equity | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Gross loans | 232,512 | 234,428 | |||
Allowance for credit losses | 2,440 | 1,435 | 2,225 | 1,469 | |
(Credit) provision for loan losses | 215 | (34) | 669 | ||
Non-Accrual Loans | 438 | 486 | |||
Loans outstanding | 232,512 | 234,428 | |||
Consumer | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Gross loans | 19,733 | 20,591 | |||
Allowance for credit losses | 507 | 106 | 504 | $ 79 | |
(Credit) provision for loan losses | 4 | 92 | $ 552 | ||
Non-Accrual Loans | 0 | 0 | |||
Loans outstanding | 19,733 | 20,591 | |||
Fixed Rate Residential Mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Proceeds from the sale of mortgage loans | 35,100 | 46,600 | |||
Gain on sale of mortgage loans | (384) | (1,100) | |||
Loans held for sale, at fair value (book value of $4,539 and $5,259, respectively) | 4,500 | 5,300 | |||
Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Gross loans | 421,099 | 430,131 | |||
Recorded Investment | 0 | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 14,185 | 73,686 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 68,796 | 70,162 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 66,132 | 32,498 | |||
SBA PPP Portfolio | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Gross loans | 583 | 648 | |||
Nonoperating Income (Expense) | Fixed Rate Residential Mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Gain on sale of mortgage loans | 85 | 142 | |||
Unrealized gain (loss) on loans held for sale | $ 23 | $ (62) | |||
Non-Residential Building Operators Industry Sector | Loan Concentration Risk | Total Loan Portfolio | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration risk (percentage) | 13% | ||||
Non-Residential Building Operators Industry Sector | Loan Concentration Risk | Commercial Real Estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration risk (percentage) | 32% | ||||
Residential Building Operators Industry Sector | Loan Concentration Risk | Total Loan Portfolio | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration risk (percentage) | 12% | ||||
Residential Building Operators Industry Sector | Loan Concentration Risk | Commercial Real Estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration risk (percentage) | 28% | ||||
Substandard [Member] | Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Gross loans | $ 4,347 | 5,156 | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 192 | 149 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 229 | 52 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 88 | 133 | |||
Pass [Member] | Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Gross loans | 416,161 | 423,274 | |||
Financing Receivable, Year One, Originated, Current Fiscal Year | 13,993 | 73,537 | |||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 68,567 | 70,110 | |||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | $ 66,044 | 32,272 | |||
Performing Financial Instruments [Member] | Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Recorded Investment | 2,100 | ||||
Nonperforming Financial Instruments [Member] | Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Recorded Investment | $ 452 |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS (Composition of Loan Portfolio) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | $ 4,073,108 | $ 4,010,353 |
Commercial Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 2,087,716 | 2,055,068 |
Commercial real estate - non-owner-occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 1,328,793 | 1,292,443 |
Commercial real estate - owner-occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 337,824 | 332,494 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 421,099 | 430,131 |
Retail Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 1,985,392 | 1,955,285 |
Residential real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 1,733,147 | 1,700,266 |
Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | 232,512 | 234,428 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross loans | $ 19,733 | $ 20,591 |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS (Unamortized fair value mark and costs) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Net Unamortized fair Value Mark (Discount) on Loans | $ (279) | $ (313) |
Loans and Leases Receivable, Deferred Income | 6,944 | 6,890 |
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | $ 6,665 | $ 6,577 |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS (Activity in Allowance for Credit Losses on Loans by Portfolio Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Beginning Balance | $ 36,922 | $ 33,256 | $ 33,256 |
Charge-offs | (334) | (312) | (1,242) |
Recoveries | 107 | 62 | 478 |
(Credit) provision for loan losses | 439 | (1,221) | 4,430 |
Ending Balance | 37,134 | 31,785 | |
Commercial real estate - non-owner-occupied | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Beginning Balance | 17,296 | 18,834 | 18,834 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 1 | 1 | 3 |
(Credit) provision for loan losses | (973) | (2,263) | (1,541) |
Ending Balance | 16,324 | 16,572 | |
Commercial real estate - owner-occupied | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Beginning Balance | 2,362 | 2,539 | 2,539 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 2 | 2 |
(Credit) provision for loan losses | 108 | (202) | (179) |
Ending Balance | 2,470 | 2,339 | |
Commercial | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Beginning Balance | 5,446 | 4,202 | 4,202 |
Charge-offs | (312) | (245) | (1,042) |
Recoveries | 99 | 57 | 379 |
(Credit) provision for loan losses | (652) | 843 | 1,907 |
Ending Balance | 4,581 | 4,857 | |
Residential real estate | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Beginning Balance | 9,089 | 6,133 | 6,133 |
Charge-offs | (18) | 0 | (66) |
Recoveries | 4 | 0 | 0 |
(Credit) provision for loan losses | 1,737 | 343 | 3,022 |
Ending Balance | 10,812 | 6,476 | |
Home equity | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Beginning Balance | 2,225 | 1,469 | 1,469 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 87 |
(Credit) provision for loan losses | 215 | (34) | 669 |
Ending Balance | 2,440 | 1,435 | |
Consumer | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Beginning Balance | 504 | 79 | 79 |
Charge-offs | (4) | (67) | (134) |
Recoveries | 3 | 2 | 7 |
(Credit) provision for loan losses | 4 | 92 | $ 552 |
Ending Balance | $ 507 | $ 106 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS (Credit Quality and Origination by Portfolio Segment Analysis) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2022 | |
Gross charge-offs for the three months ended | ||||
Charge-offs | $ 334 | $ 312 | $ 1,242 | |
Commercial real estate - non-owner-occupied | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 32,495 | $ 339,171 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 349,083 | 288,043 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 292,748 | 162,291 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 160,495 | 125,491 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 123,600 | 116,696 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 370,372 | 260,751 | ||
Financing Receivable, Revolving | 0 | 0 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Gross loans | 1,328,793 | 1,292,443 | ||
Gross charge-offs for the three months ended | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Revolving, Writeoff | 0 | |||
Financing Receivable, Revolving, Converted to Term Loan, Writeoff | 0 | |||
Charge-offs | 0 | |||
Commercial real estate - non-owner-occupied | Pass [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 32,495 | 339,171 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 348,906 | 287,749 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 292,459 | 160,621 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 158,884 | 125,029 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 123,148 | 108,823 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 343,942 | 242,024 | ||
Financing Receivable, Revolving | 0 | 0 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Gross loans | 1,299,834 | 1,263,417 | ||
Commercial real estate - non-owner-occupied | Special Mention [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 167 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 166 | 364 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 356 | 259 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 252 | 75 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 388 | 321 | ||
Financing Receivable, Revolving | 0 | 0 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Gross loans | 1,162 | 1,186 | ||
Commercial real estate - non-owner-occupied | Substandard [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 177 | 127 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 123 | 1,306 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 1,255 | 203 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 200 | 7,798 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 26,042 | 18,406 | ||
Financing Receivable, Revolving | 0 | 0 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Gross loans | 27,797 | 27,840 | ||
Commercial real estate - non-owner-occupied | Doubtful | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Revolving | 0 | 0 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Gross loans | 0 | 0 | ||
Commercial real estate - owner-occupied | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 17,730 | 60,144 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 54,524 | 82,834 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 81,692 | 28,378 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 27,889 | 43,373 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 41,955 | 42,820 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 114,034 | 74,945 | ||
Financing Receivable, Revolving | 0 | 0 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Gross loans | 337,824 | 332,494 | ||
Gross charge-offs for the three months ended | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Revolving, Writeoff | 0 | |||
Financing Receivable, Revolving, Converted to Term Loan, Writeoff | 0 | |||
Charge-offs | 0 | |||
Commercial real estate - owner-occupied | Pass [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 17,730 | 60,127 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 54,516 | 80,781 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 79,464 | 28,378 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 27,889 | 23,381 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 21,962 | 39,554 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 106,937 | 70,568 | ||
Financing Receivable, Revolving | 0 | 0 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Gross loans | 308,498 | 302,789 | ||
Commercial real estate - owner-occupied | Special Mention [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 2,053 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 19,992 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 404 | 411 | ||
Financing Receivable, Revolving | 0 | 0 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Gross loans | 404 | 22,456 | ||
Commercial real estate - owner-occupied | Substandard [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | 17 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 8 | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 2,228 | 0 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 19,993 | 3,266 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 6,693 | 3,966 | ||
Financing Receivable, Revolving | 0 | 0 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Gross loans | 28,922 | 7,249 | ||
Commercial real estate - owner-occupied | Doubtful | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Revolving | 0 | 0 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Gross loans | 0 | 0 | ||
Commercial | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 14,185 | 73,686 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 68,796 | 70,162 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 66,132 | 32,498 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 30,580 | 33,848 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 31,836 | 23,187 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 47,297 | 27,958 | ||
Financing Receivable, Revolving | 131,170 | 136,403 | ||
Financing Receivable, Revolving, Converted to Term Loan | 31,103 | 32,389 | ||
Gross loans | 421,099 | 430,131 | ||
Gross charge-offs for the three months ended | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff | 51 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff | 9 | |||
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff | 172 | |||
Financing Receivable, Revolving, Writeoff | 20 | |||
Financing Receivable, Revolving, Converted to Term Loan, Writeoff | 60 | |||
Charge-offs | 312 | |||
Commercial | Pass [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 13,993 | 73,537 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 68,567 | 70,110 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 66,044 | 32,272 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 30,359 | 33,491 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 31,455 | 22,271 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 45,211 | 26,245 | ||
Financing Receivable, Revolving | 130,278 | 135,157 | ||
Financing Receivable, Revolving, Converted to Term Loan | 30,254 | 30,191 | ||
Gross loans | 416,161 | 423,274 | ||
Commercial | Special Mention [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 93 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 87 | 141 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 114 | 70 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 180 | 189 | ||
Financing Receivable, Revolving | 200 | 1,196 | ||
Financing Receivable, Revolving, Converted to Term Loan | 10 | 12 | ||
Gross loans | 591 | 1,701 | ||
Commercial | Substandard [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 192 | 149 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 229 | 52 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 88 | 133 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 134 | 216 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 267 | 846 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 1,906 | 1,524 | ||
Financing Receivable, Revolving | 692 | 50 | ||
Financing Receivable, Revolving, Converted to Term Loan | 839 | 2,186 | ||
Gross loans | 4,347 | 5,156 | ||
Commercial | Doubtful | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Revolving | 0 | 0 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Gross loans | 0 | 0 | ||
Residential real estate | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 47,241 | 533,035 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 544,518 | 579,216 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 572,505 | 244,691 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 236,212 | 79,492 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 77,456 | 50,377 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 254,868 | 213,115 | ||
Financing Receivable, Revolving | 347 | 340 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Gross loans | 1,733,147 | 1,700,266 | ||
Gross charge-offs for the three months ended | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff | 18 | |||
Financing Receivable, Revolving, Writeoff | 0 | |||
Financing Receivable, Revolving, Converted to Term Loan, Writeoff | 0 | |||
Charge-offs | 18 | |||
Residential real estate | Pass [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 47,241 | 533,035 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 544,518 | 579,216 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 572,505 | 244,691 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 236,212 | 79,492 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 77,364 | 50,214 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 252,040 | 210,262 | ||
Financing Receivable, Revolving | 347 | 340 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Gross loans | 1,730,227 | 1,697,250 | ||
Residential real estate | Special Mention [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | 23 | ||
Financing Receivable, Revolving | 0 | 0 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Gross loans | 0 | 23 | ||
Residential real estate | Substandard [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 92 | 163 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 2,828 | 2,830 | ||
Financing Receivable, Revolving | 0 | 0 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Gross loans | 2,920 | 2,993 | ||
Residential real estate | Doubtful | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Revolving | 0 | 0 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Gross loans | 0 | 0 | ||
Home equity | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 3,926 | 26,712 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 25,674 | 693 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 564 | 341 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 338 | 4,842 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 4,655 | 7,730 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 15,137 | 8,578 | ||
Financing Receivable, Revolving | 170,422 | 173,715 | ||
Financing Receivable, Revolving, Converted to Term Loan | 11,796 | 11,817 | ||
Gross loans | 232,512 | 234,428 | ||
Gross charge-offs for the three months ended | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Revolving, Writeoff | 0 | |||
Financing Receivable, Revolving, Converted to Term Loan, Writeoff | 0 | |||
Charge-offs | 0 | |||
Home equity | Performing Financial Instruments [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 3,926 | 26,712 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 25,674 | 693 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 564 | 341 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 338 | 4,842 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 4,655 | 7,730 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 15,125 | 8,551 | ||
Financing Receivable, Revolving | 170,075 | 173,338 | ||
Financing Receivable, Revolving, Converted to Term Loan | 11,717 | 11,735 | ||
Gross loans | 232,074 | 233,942 | ||
Home equity | Nonperforming Financial Instruments [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 12 | 27 | ||
Financing Receivable, Revolving | 347 | 377 | ||
Financing Receivable, Revolving, Converted to Term Loan | 79 | 82 | ||
Gross loans | 438 | 486 | ||
Consumer | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 1,441 | 8,009 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 7,204 | 3,816 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 3,359 | 1,702 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 1,455 | 1,188 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 826 | 345 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 2,662 | 2,462 | ||
Financing Receivable, Revolving | 2,786 | 3,069 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Gross loans | 19,733 | 20,591 | ||
Gross charge-offs for the three months ended | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Excluding Accrued Interest, Year Two, Originated, Fiscal Year before Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Excluding Accrued Interest, Year Five, Originated, Four Years before Current Fiscal Year, Writeoff | 0 | |||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year, Writeoff | 4 | |||
Financing Receivable, Revolving, Writeoff | 0 | |||
Financing Receivable, Revolving, Converted to Term Loan, Writeoff | 0 | |||
Charge-offs | 4 | |||
Consumer | Performing Financial Instruments [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 1,441 | 8,009 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 7,204 | 3,816 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 3,359 | 1,702 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 1,455 | 1,188 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 826 | 345 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 2,662 | 2,462 | ||
Financing Receivable, Revolving | 2,786 | 3,069 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Gross loans | 19,733 | 20,591 | ||
Consumer | Nonperforming Financial Instruments [Member] | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | 0 | ||
Financing Receivable, Revolving | 0 | 0 | ||
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 | ||
Gross loans | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS (Loan Aging Analysis by Portfolio Segment) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | $ 4,073,108 | $ 4,010,353 |
Loans 90 Days Past Due and Accruing | 0 | 0 |
Commercial real estate - non-owner-occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 1,328,793 | 1,292,443 |
Loans 90 Days Past Due and Accruing | 0 | 0 |
Gross loans | 1,328,793 | 1,292,443 |
Commercial real estate - owner-occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 337,824 | 332,494 |
Loans 90 Days Past Due and Accruing | 0 | |
Gross loans | 337,824 | 332,494 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 421,099 | 430,131 |
Loans 90 Days Past Due and Accruing | 0 | 0 |
Gross loans | 421,099 | 430,131 |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 1,733,147 | 1,700,266 |
Loans 90 Days Past Due and Accruing | 0 | 0 |
Gross loans | 1,733,147 | 1,700,266 |
Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 232,512 | 234,428 |
Loans 90 Days Past Due and Accruing | 0 | 0 |
Gross loans | 232,512 | 234,428 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 19,733 | 20,591 |
Loans 90 Days Past Due and Accruing | 0 | 0 |
Gross loans | 19,733 | 20,591 |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 3,483 | 3,945 |
Total Past Due | Commercial real estate - non-owner-occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 44 | 278 |
Total Past Due | Commercial real estate - owner-occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 124 | 102 |
Total Past Due | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 1,509 | 1,441 |
Total Past Due | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 936 | 1,562 |
Total Past Due | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 809 | 528 |
Total Past Due | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 61 | 34 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 1,943 | 2,221 |
30-59 Days Past Due | Commercial real estate - non-owner-occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 34 | 267 |
30-59 Days Past Due | Commercial real estate - owner-occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 77 | 55 |
30-59 Days Past Due | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 965 | 667 |
30-59 Days Past Due | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 283 | 852 |
30-59 Days Past Due | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 552 | 357 |
30-59 Days Past Due | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 32 | 23 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 408 | 331 |
60-89 Days Past Due | Commercial real estate - non-owner-occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 0 | 0 |
60-89 Days Past Due | Commercial real estate - owner-occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 0 | 0 |
60-89 Days Past Due | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 79 | 134 |
60-89 Days Past Due | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 194 | 186 |
60-89 Days Past Due | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 106 | 0 |
60-89 Days Past Due | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 29 | 11 |
90 Days or Greater Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 1,132 | 1,393 |
90 Days or Greater Past Due | Commercial real estate - non-owner-occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 10 | 11 |
90 Days or Greater Past Due | Commercial real estate - owner-occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 47 | 47 |
90 Days or Greater Past Due | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 465 | 640 |
90 Days or Greater Past Due | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 459 | 524 |
90 Days or Greater Past Due | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 151 | 171 |
90 Days or Greater Past Due | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 0 | 0 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 4,069,625 | 4,006,408 |
Current | Commercial real estate - non-owner-occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 1,328,749 | 1,292,165 |
Current | Commercial real estate - owner-occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 337,700 | 332,392 |
Current | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 419,590 | 428,690 |
Current | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 1,732,211 | 1,698,704 |
Current | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 231,703 | 233,900 |
Current | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans outstanding | 19,672 | 20,557 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 14,185 | 73,686 |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 68,796 | 70,162 |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 66,132 | 32,498 |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 30,580 | 33,848 |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 31,836 | 23,187 |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 47,297 | 27,958 |
Financing Receivable, Revolving | 131,170 | 136,403 |
Financing Receivable, Revolving, Converted to Term Loan | 31,103 | 32,389 |
Gross loans | 421,099 | 430,131 |
Commercial | Doubtful | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | 0 |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Revolving | 0 | 0 |
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 |
Gross loans | 0 | 0 |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 47,241 | 533,035 |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 544,518 | 579,216 |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 572,505 | 244,691 |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 236,212 | 79,492 |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 77,456 | 50,377 |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 254,868 | 213,115 |
Financing Receivable, Revolving | 347 | 340 |
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 |
Gross loans | 1,733,147 | 1,700,266 |
Residential real estate | Doubtful | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | 0 |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Revolving | 0 | 0 |
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 |
Gross loans | 0 | 0 |
Commercial real estate - non-owner-occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 32,495 | 339,171 |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 349,083 | 288,043 |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 292,748 | 162,291 |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 160,495 | 125,491 |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 123,600 | 116,696 |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 370,372 | 260,751 |
Financing Receivable, Revolving | 0 | 0 |
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 |
Gross loans | 1,328,793 | 1,292,443 |
Commercial real estate - non-owner-occupied | Doubtful | ||
Financing Receivable, Past Due [Line Items] | ||
Financing Receivable, Year One, Originated, Current Fiscal Year | 0 | 0 |
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year | 0 | 0 |
Financing Receivable, Year Three, Originated, Two Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Year Four, Originated, Three Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Originated, More than Five Years before Current Fiscal Year | 0 | 0 |
Financing Receivable, Revolving | 0 | 0 |
Financing Receivable, Revolving, Converted to Term Loan | 0 | 0 |
Gross loans | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS (Financing Receivable, Nonaccrual) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual, With Allowance | $ 2,342 | $ 2,150 |
Financing Receivable, Nonaccrual, No Allowance | 616 | 841 |
Financing Receivable, Nonaccrual | 2,958 | 2,991 |
Real Estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 325 | 387 |
General Business Assets | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
Total Collateral -Dependent Non-Accrual Loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 325 | 387 |
Commercial real estate - non-owner-occupied | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual, With Allowance | 0 | 0 |
Financing Receivable, Nonaccrual, No Allowance | 10 | 11 |
Financing Receivable, Nonaccrual | 10 | 11 |
Commercial real estate - owner-occupied | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual, With Allowance | 0 | 0 |
Financing Receivable, Nonaccrual, No Allowance | 47 | 46 |
Financing Receivable, Nonaccrual | 47 | 46 |
Commercial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual, With Allowance | 606 | 415 |
Financing Receivable, Nonaccrual, No Allowance | 142 | 300 |
Financing Receivable, Nonaccrual | 748 | 715 |
Residential real estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual, With Allowance | 1,359 | 1,314 |
Financing Receivable, Nonaccrual, No Allowance | 356 | 419 |
Financing Receivable, Nonaccrual | 1,715 | 1,733 |
Residential real estate | Real Estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 325 | 387 |
Residential real estate | General Business Assets | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
Residential real estate | Total Collateral -Dependent Non-Accrual Loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 325 | 387 |
Home equity | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual, With Allowance | 377 | 421 |
Financing Receivable, Nonaccrual, No Allowance | 61 | 65 |
Financing Receivable, Nonaccrual | 438 | 486 |
Home equity | Real Estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
Home equity | General Business Assets | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
Home equity | Total Collateral -Dependent Non-Accrual Loans | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual | 0 | 0 |
Consumer | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Financing Receivable, Nonaccrual, With Allowance | 0 | 0 |
Financing Receivable, Nonaccrual, No Allowance | 0 | 0 |
Financing Receivable, Nonaccrual | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS (Troubled Debt Restructuring Loans) (Details) $ in Thousands | Dec. 31, 2022 USD ($) loan |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Contracts | loan | 22 |
Recorded Investment | $ 2,566 |
Specific Reserve | $ 366 |
Residential real estate | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Contracts | loan | 18 |
Recorded Investment | $ 2,208 |
Specific Reserve | $ 307 |
Commercial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Contracts | loan | 0 |
Recorded Investment | $ 0 |
Specific Reserve | $ 0 |
Consumer | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Contracts | loan | 3 |
Recorded Investment | $ 245 |
Specific Reserve | $ 9 |
Commercial real estate - owner-occupied | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Contracts | loan | 1 |
Recorded Investment | $ 113 |
Specific Reserve | $ 50 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES ON LOANS (Troubled Debt Restructuring by Portfolio Segment) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Contracts | loan | 1 |
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 69 |
Financing Receivable, Troubled Debt Restructuring, Postmodification | 96 |
Allowance Related to Troubled Debt Restructurings assigned during period | $ 0 |
Home equity | Interest Rate Concession and Payment Deferral | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Contracts | loan | 0 |
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 0 |
Financing Receivable, Troubled Debt Restructuring, Postmodification | 0 |
Allowance Related to Troubled Debt Restructurings assigned during period | $ 0 |
Home equity | Extended Maturity | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Contracts | loan | 1 |
Financing Receivable, Troubled Debt Restructuring, Premodification | $ 69 |
Financing Receivable, Troubled Debt Restructuring, Postmodification | 96 |
Allowance Related to Troubled Debt Restructurings assigned during period | $ 0 |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Repurchase Agreements | $ 196,918 | $ 196,451 |
Total short-term borrowings | 486,318 | 265,176 |
Subordinated Debt | 44,331 | 44,331 |
Short-term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase Agreements | 196,918 | 196,451 |
Federal Home Loan Bank, Advance, Maturity, Year One | 100,000 | 50,000 |
FHLBB and Correspondent Bank Overnight Borrowings | $ 189,400 | $ 18,725 |
REPURCHASE AGREEMENTS (Details)
REPURCHASE AGREEMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | $ 196,918 | $ 196,451 |
45016 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 196,918 | 196,451 |
MBS issued or guaranteed by U.S. government-sponsored enterprises | 45016 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 174,276 | 99,105 |
CMO issued or guaranteed by U.S. government-sponsored enterprises | 45016 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 22,642 | 94,328 |
Obligations of states and political subdivisions | 45016 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 0 | 3,018 |
Total Collateral -Dependent Non-Accrual Loans | 45016 | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Certificates of Deposit, at Carrying Value | $ 617 | $ 616 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Legal Proceedings [Line Items] | |||
Off-Balance Sheet, Credit Loss, Liability | $ 3,000,000 | $ 3,300,000 | |
Off-Balance Sheet, Credit Loss, Liability, Credit Loss Expense (Reversal) | (275,000) | $ 161,000 | |
Loss Contingency Accrual | $ 0 | $ 0 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES (Summary of Contractual and Notional Amounts of FInancial Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financial Instruments [Line Items] | ||
Contractual Amounts Of Financial Instrument | $ 786,171 | $ 824,573 |
Commitments to Extend Credit [Member] | ||
Financial Instruments [Line Items] | ||
Contractual Amounts Of Financial Instrument | 779,402 | 817,772 |
Standby Letters of Credit [Member] | ||
Financial Instruments [Line Items] | ||
Contractual Amounts Of Financial Instrument | $ 6,769 | $ 6,801 |
DERIVATIVES AND HEDGING (Narrat
DERIVATIVES AND HEDGING (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Other Commitments [Line Items] | ||
Estimated amount to be reclassified as an increase to interest expense | $ 2,500 | |
Estimated amount to be reclassified as an increase to interest income | 3,000 | |
Derivative liability, fair value, net | 11,600 | $ 14,800 |
Cash collateral | 0 | 0 |
Termination value | $ 11,600 | $ 14,800 |
DERIVATIVES AND HEDGING (Schedu
DERIVATIVES AND HEDGING (Schedule of derivative financial instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued interest and other liabilities | Accrued interest and other liabilities |
Interest rate contracts | ||
Derivative [Line Items] | ||
Fair Value | $ 10,996 | $ 13,051 |
Fair Value | 6,859 | 5,515 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Fair Value | 10,996 | 13,051 |
Fair Value | 6,859 | 5,515 |
Designated as Hedging Instrument | Interest rate contracts | ||
Derivative [Line Items] | ||
Notional Amount | 60,000 | 110,000 |
Fair Value | 10,996 | 13,051 |
Notional Amount | 433,000 | 133,000 |
Fair Value | 6,859 | 5,515 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Fair Value | 11,582 | 14,947 |
Fair Value | 11,611 | 14,937 |
Not Designated as Hedging Instrument | Customer loan swaps | ||
Derivative [Line Items] | ||
Notional Amount | 288,076 | 260,130 |
Fair Value | 11,479 | 14,802 |
Notional Amount | 288,076 | 345,545 |
Fair Value | 11,554 | 14,850 |
Not Designated as Hedging Instrument | Risk participation agreements | ||
Derivative [Line Items] | ||
Notional Amount | 21,696 | 21,818 |
Fair Value | 0 | 0 |
Notional Amount | 44,127 | 53,704 |
Fair Value | 0 | 0 |
Not Designated as Hedging Instrument | Fixed rate mortgage interest rate lock commitments | ||
Derivative [Line Items] | ||
Notional Amount | 6,883 | 4,493 |
Fair Value | 71 | 31 |
Notional Amount | 5,843 | 9,597 |
Fair Value | 43 | 87 |
Not Designated as Hedging Instrument | Forward delivery commitments | ||
Derivative [Line Items] | ||
Notional Amount | 2,887 | 5,259 |
Fair Value | 32 | 114 |
Notional Amount | 1,651 | 0 |
Fair Value | $ 14 | $ 0 |
DERIVATIVES AND HEDGING (Sche_2
DERIVATIVES AND HEDGING (Schedule of fair value hedge) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Carrying Amount of Hedged Assets/(Liabilities) | $ 301,552 | $ 0 |
Cumulative Fair Value Hedging Adjustment in the Carrying Amount of the Hedged Assets/(Liabilities) | (1,552) | 0 |
Loans | ||
Derivative [Line Items] | ||
Carrying Amount of Hedged Assets/(Liabilities) | 301,552 | 0 |
Cumulative Fair Value Hedging Adjustment in the Carrying Amount of the Hedged Assets/(Liabilities) | (1,552) | $ 0 |
Financial Asset, Closed Portfolio, Portfolio Layer Method, Amortized Cost | 853,700 | |
Beneficial Interest, Portfolio Layer Method, Amortized Cost | $ 300,000 |
DERIVATIVES AND HEDGING (Sche_3
DERIVATIVES AND HEDGING (Schedule of cash flow hedging instruments, location) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) recognized in OCI on derivative | $ (668) | $ 782 |
Amount of gain (loss) reclassified from AOCI into income | (713) | 808 |
Net interest income | 34,280 | 36,365 |
Cash Flow Hedging | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) recognized in OCI on derivative | (1,549) | 3,635 |
Amount of gain (loss) reclassified from AOCI into income | 209 | (118) |
Cash Flow Hedging | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) recognized in OCI on derivative | 182 | (3,011) |
Cash Flow Hedging | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) recognized in OCI on derivative | (1) | 3,488 |
Cash Flow Hedging | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) recognized in OCI on derivative | (796) | |
Cash Flow Hedging | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) recognized in OCI on derivative | (934) | 3,158 |
Cash Flow Hedging | Interest and fees on loans | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) reclassified from AOCI into income | (717) | 382 |
Cash Flow Hedging | Interest and fees on loans | Reclassification out of Accumulated Other Comprehensive Income | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net interest income | 45,332 | 32,035 |
Cash Flow Hedging | Interest and fees on loans | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) reclassified from AOCI into income | (717) | 382 |
Cash Flow Hedging | Interest on deposits | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) reclassified from AOCI into income | 306 | (149) |
Cash Flow Hedging | Interest on deposits | Reclassification out of Accumulated Other Comprehensive Income | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net interest income | 15,832 | 1,833 |
Cash Flow Hedging | Interest on deposits | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) reclassified from AOCI into income | 306 | (149) |
Cash Flow Hedging | Interest on borrowings | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) reclassified from AOCI into income | 487 | |
Cash Flow Hedging | Interest on borrowings | Reclassification out of Accumulated Other Comprehensive Income | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net interest income | 2,085 | |
Cash Flow Hedging | Interest on borrowings | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) reclassified from AOCI into income | 487 | |
Cash Flow Hedging | Interest on subordinated debentures | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) reclassified from AOCI into income | 133 | (351) |
Cash Flow Hedging | Interest on subordinated debentures | Reclassification out of Accumulated Other Comprehensive Income | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net interest income | 528 | 529 |
Cash Flow Hedging | Interest on subordinated debentures | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) reclassified from AOCI into income | 133 | (351) |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Included Component | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) recognized in OCI on derivative | (1,549) | 3,635 |
Amount of gain (loss) reclassified from AOCI into income | 209 | (118) |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Included Component | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) recognized in OCI on derivative | 182 | (3,011) |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Included Component | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) recognized in OCI on derivative | (1) | 3,488 |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Included Component | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) recognized in OCI on derivative | (796) | |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Included Component | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) recognized in OCI on derivative | (934) | 3,158 |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Included Component | Interest and fees on loans | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) reclassified from AOCI into income | (717) | 382 |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Included Component | Interest and fees on loans | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) reclassified from AOCI into income | (717) | 382 |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Included Component | Interest on deposits | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) reclassified from AOCI into income | 306 | (149) |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Included Component | Interest on deposits | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) reclassified from AOCI into income | 306 | (149) |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Included Component | Interest on borrowings | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) reclassified from AOCI into income | 487 | |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Included Component | Interest on borrowings | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) reclassified from AOCI into income | 487 | |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Included Component | Interest on subordinated debentures | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) reclassified from AOCI into income | 133 | (351) |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Included Component | Interest on subordinated debentures | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) reclassified from AOCI into income | 133 | (351) |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Excluded Component | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) recognized in OCI on derivative | 0 | 0 |
Amount of gain (loss) reclassified from AOCI into income | 0 | 0 |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Excluded Component | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) recognized in OCI on derivative | 0 | 0 |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Excluded Component | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) recognized in OCI on derivative | 0 | 0 |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Excluded Component | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) recognized in OCI on derivative | 0 | |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Excluded Component | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) recognized in OCI on derivative | 0 | |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Excluded Component | Interest and fees on loans | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) reclassified from AOCI into income | 0 | 0 |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Excluded Component | Interest and fees on loans | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) reclassified from AOCI into income | 0 | 0 |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Excluded Component | Interest on deposits | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) reclassified from AOCI into income | 0 | 0 |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Excluded Component | Interest on deposits | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) reclassified from AOCI into income | 0 | 0 |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Excluded Component | Interest on borrowings | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) reclassified from AOCI into income | 0 | |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Excluded Component | Interest on borrowings | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) reclassified from AOCI into income | 0 | |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Excluded Component | Interest on subordinated debentures | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) reclassified from AOCI into income | 0 | |
Cash Flow Hedging | AOCI, Derivative Qualifying as Hedge, Excluded Component | Interest on subordinated debentures | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of gain (loss) reclassified from AOCI into income | 0 | 0 |
Fair Value Hedging | Interest and fees on loans | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged items | 1,552 | 0 |
Derivatives designated as hedging instruments | (1,077) | 0 |
Fair Value Hedging | Interest on deposits | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged items | 0 | 0 |
Derivatives designated as hedging instruments | 0 | 0 |
Fair Value Hedging | Interest on borrowings | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged items | 0 | |
Derivatives designated as hedging instruments | 0 | |
Fair Value Hedging | Interest on subordinated debentures | Interest rate contracts | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Hedged items | 0 | 0 |
Derivatives designated as hedging instruments | $ 0 | $ 0 |
DERIVATIVES AND HEDGING (Sche_4
DERIVATIVES AND HEDGING (Schedule of derivatives effect on OCI) (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ (39) | $ (199) |
Customer loan swaps | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | (27) | 94 |
Fixed rate mortgage interest rate lock commitments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 84 | (459) |
Forward delivery commitments | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ (96) | $ 166 |
BALANCE SHEET OFFSETTING (Detai
BALANCE SHEET OFFSETTING (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Offsetting Assets [Line Items] | ||
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Gross | $ 22,475 | $ 27,853 |
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Liability | 0 | 0 |
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed | 22,475 | 27,853 |
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Not Offset, Policy Election Deduction | 0 | 0 |
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Collateral, Obligation to Return Cash | (10,889) | (10,915) |
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Amount Offset Against Collateral | 11,586 | 16,938 |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Gross | 18,413 | 20,365 |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Asset | 0 | 0 |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned | 18,413 | 20,365 |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Not Offset, Policy Election Deduction | 0 | 0 |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Collateral, Right to Reclaim Cash | 6,859 | 5,515 |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Amount Offset Against Collateral | 11,554 | 14,850 |
Securities Sold under Agreements to Repurchase, Gross | 196,918 | 196,451 |
Securities Sold under Agreements to Repurchase, Asset | 0 | 0 |
Securities Sold under Agreements to Repurchase | 196,918 | 196,451 |
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Collateral, Right to Reclaim Securities | 196,918 | 196,451 |
Securities Sold under Agreements to Repurchase, Collateral, Right to Reclaim Cash | 0 | 0 |
Securities Sold under Agreements to Repurchase, Amount Offset Against Collateral | 0 | 0 |
Customer Loan Swap Dealer Bank [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 11,479 | |
Derivative Asset, Fair Value, Gross Liability | 0 | |
Fair Value | 11,479 | |
Derivative Asset, Not Offset, Policy Election Deduction | 0 | |
Derivative, Collateral, Obligation to Return Cash | 0 | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 11,479 | |
Derivative Liability, Fair Value, Gross Liability | 14,850 | |
Derivative Liability, Fair Value, Gross Asset | 0 | |
Fair Value | 14,850 | |
Derivative Liability, Not Offset, Policy Election Deduction | 0 | |
Derivative, Collateral, Right to Reclaim Cash | 0 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 14,850 | |
Customer Loan Swaps Commercial Customer [Member] | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 14,802 | |
Derivative Asset, Fair Value, Gross Liability | 0 | |
Fair Value | 14,802 | |
Derivative Asset, Not Offset, Policy Election Deduction | 0 | |
Derivative, Collateral, Obligation to Return Cash | 0 | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 14,802 | |
Derivative Liability, Fair Value, Gross Liability | 11,554 | |
Derivative Liability, Fair Value, Gross Asset | 0 | |
Fair Value | 11,554 | |
Derivative Liability, Not Offset, Policy Election Deduction | 0 | |
Derivative, Collateral, Right to Reclaim Cash | 0 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 11,554 | |
Interest rate contracts | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 10,996 | 13,051 |
Derivative Asset, Fair Value, Gross Liability | 0 | 0 |
Fair Value | 10,996 | 13,051 |
Derivative Asset, Not Offset, Policy Election Deduction | 0 | 0 |
Derivative, Collateral, Obligation to Return Cash | (10,889) | (10,915) |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 107 | 2,136 |
Derivative Liability, Fair Value, Gross Liability | 6,859 | 5,515 |
Derivative Liability, Fair Value, Gross Asset | 0 | 0 |
Fair Value | 6,859 | 5,515 |
Derivative Liability, Not Offset, Policy Election Deduction | 0 | 0 |
Derivative, Collateral, Right to Reclaim Cash | 6,859 | 5,515 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | $ 0 | $ 0 |
REGULATORY CAPITAL REQUIREMEN_3
REGULATORY CAPITAL REQUIREMENTS Regulatory Capital Requirements (Narrative) (Details) $ in Thousands | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.1050 | 0.1050 |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 7% | 7% |
Banking Regulation, Tier One Leverage Capital Ratio, Capital Adequacy, Minimum | 0.0400 | 0.0400 |
Value Of Trust Preferred Securities Included In Tier One Capital | $ 43,000 | $ 43,000 |
Subordinated Debt | $ 44,331 | $ 44,331 |
Minimum | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.080 | |
Banking Regulation, Tier One Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.060 | |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | |
Banking Regulation, Tier One Leverage Capital Ratio, Capital Adequacy, Minimum | 0.040 |
REGULATORY CAPITAL REQUIREMEN_4
REGULATORY CAPITAL REQUIREMENTS (Details) $ in Thousands | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Banking Regulation, Total Capital, Actual | $ 564,967 | $ 557,571 |
Banking Regulation, Total Risk-Based Capital Ratio, Actual | 0.1395 | 0.1380 |
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.1050 | 0.1050 |
Banking Regulation, Total Risk-Based Capital Ratio, Well Capitalized, Minimum | 0.1000 | 0.1000 |
Banking Regulation, Tier One Risk-Based Capital, Actual | $ 524,843 | $ 517,385 |
Banking Regulation, Tier One Risk-Based Capital Ratio, Actual | 0.1296 | 0.1281 |
Banking Regulation, Tier One Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.0850 | 0.0850 |
Banking Regulation, Tier One Risk-Based Capital Ratio, Well Capitalized, Minimum | 0.0600 | 0.0600 |
Common equity tier I capital | $ 481,843 | $ 474,385 |
Common Equity Tier I Risk Based Capital Ratio | 11.90% | 11.74% |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 7% | 7% |
Banking Regulation, Tier One Leverage Capital, Actual | $ 524,843 | $ 517,385 |
Banking Regulation, Excess Tier One Leverage Capital Ratio, Actual | 0.0924 | 0.0922 |
Banking Regulation, Tier One Leverage Capital Ratio, Capital Adequacy, Minimum | 0.0400 | 0.0400 |
Subsidiaries | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Banking Regulation, Total Capital, Actual | $ 532,658 | $ 525,346 |
Banking Regulation, Total Risk-Based Capital Ratio, Actual | 0.1318 | 0.1303 |
Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.1050 | 0.1050 |
Banking Regulation, Total Risk-Based Capital Ratio, Well Capitalized, Minimum | 0.1000 | 0.1000 |
Banking Regulation, Tier One Risk-Based Capital, Actual | $ 492,534 | $ 485,160 |
Banking Regulation, Tier One Risk-Based Capital Ratio, Actual | 0.1219 | 0.1203 |
Banking Regulation, Tier One Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.0850 | 0.0850 |
Banking Regulation, Tier One Risk-Based Capital Ratio, Well Capitalized, Minimum | 0.0800 | 0.0800 |
Common equity tier I capital | $ 492,534 | $ 485,160 |
Common Equity Tier I Risk Based Capital Ratio | 12.19% | 12.03% |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 7% | 7% |
Common Equity Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 6.50% | 6.50% |
Banking Regulation, Tier One Leverage Capital, Actual | $ 492,534 | $ 485,160 |
Banking Regulation, Excess Tier One Leverage Capital Ratio, Actual | 0.0868 | 0.0865 |
Banking Regulation, Tier One Leverage Capital Ratio, Capital Adequacy, Minimum | 0.0400 | 0.0400 |
Banking Regulation, Tier One Leverage Capital Ratio, Well Capitalized, Minimum | 0.0500 | 0.0500 |
OTHER COMPREHENSIVE INCOME (L_3
OTHER COMPREHENSIVE INCOME (LOSS) Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AFS Debt Securities: | ||
Unrealized holding gains, pre-tax amount | $ 9,885 | $ (92,753) |
Unrealized holdings gains, tax (expense) benefit | (2,125) | 19,942 |
Unrealized holdings gains, after-tax amount | 7,760 | (72,811) |
Less: reclassification adjustment for amortization of securities transferred from AFS to HTM, pre-tax amount | (1,699) | 0 |
Less: reclassification adjustment for amortization of securities transferred from AFS to HTM, tax (expense) benefit | 365 | 0 |
Less: reclassification adjustment for amortization of securities transferred from AFS to HTM, after-tax amount | (1,334) | 0 |
Net unrealized gains, pre-tax amount | 11,584 | (92,753) |
Net unrealized gains, tax (expense) benefit | (2,490) | 19,942 |
Net unrealized gains, after-tax amount | 9,094 | (72,811) |
Cash Flow Hedges: | ||
Net decrease in fair value, pre-tax amount | (3,109) | 3,635 |
Net decrease in fair value, tax (expense) benefit | 668 | (782) |
Net decrease in fair value, after-tax amount | (2,441) | 2,853 |
Net decrease in fair value, pre-tax amount | (3,318) | 3,753 |
Net decrease in fair value, tax (expense) benefit | 713 | (808) |
Net decrease in fair value, after-tax amount | (2,605) | 2,945 |
Postretirement Plans: | ||
Net gain on postretirement plans, pre-tax amount | (6) | 232 |
Net gain on postretirement plans, tax (expense) benefit | 1 | (50) |
Net gain on postretirement plans, net of tax | (5) | 182 |
Other comprehensive income, pre-tax amount | 8,260 | (88,768) |
Other comprehensive income, tax (expense) benefit | (1,776) | 19,084 |
Other comprehensive income (loss) | 6,484 | (69,684) |
Interest Expense, Borrowings | ||
Cash Flow Hedges: | ||
Less: effective portion reclassified into interest expense, pre-tax amount | 926 | (500) |
Less: effective portion reclassified into interest expense, tax (expense) benefit | (199) | 108 |
Less: effective portion reclassified into interest expense, after-tax amount | 727 | (392) |
Interest Income, Interest and Fees on Loans | ||
Cash Flow Hedges: | ||
Less: effective portion reclassified into interest expense, pre-tax amount | (717) | 382 |
Less: effective portion reclassified into interest expense, tax (expense) benefit | 154 | (82) |
Less: effective portion reclassified into interest expense, after-tax amount | $ (563) | $ 300 |
OTHER COMPREHENSIVE INCOME (L_4
OTHER COMPREHENSIVE INCOME (LOSS) Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ 451,278 | $ 541,294 |
Other comprehensive income (loss) before reclassifications | 5,319 | (69,958) |
Less: Amounts reclassified from AOCI | (1,165) | (274) |
Other comprehensive income (loss) | 6,484 | (69,684) |
Ending Balance | 464,874 | 482,446 |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (125,955) | (6,229) |
Ending Balance | (119,471) | (75,913) |
Net Unrealized Gains (Losses) on Debt Securities(1) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (131,539) | (1,173) |
Other comprehensive income (loss) before reclassifications | 7,760 | (72,811) |
Less: Amounts reclassified from AOCI | (1,334) | 0 |
Other comprehensive income (loss) | 9,094 | (72,811) |
Ending Balance | (122,445) | (73,984) |
Net Unrealized (Losses) Gains on Cash Flow Hedges(1) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | 5,891 | (1,779) |
Other comprehensive income (loss) before reclassifications | (2,441) | 2,853 |
Less: Amounts reclassified from AOCI | 164 | (92) |
Other comprehensive income (loss) | (2,605) | 2,945 |
Ending Balance | 3,286 | 1,166 |
Defined Benefit Postretirement Plans(1) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (307) | (3,277) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Less: Amounts reclassified from AOCI | 5 | (182) |
Other comprehensive income (loss) | (5) | 182 |
Ending Balance | $ (312) | $ (3,095) |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 7,815 | $ 7,782 |
Revenue Not from Contract with Customer | 2,051 | 2,043 |
Noninterest Income | 9,866 | 9,825 |
Products And Services, Debt Card Income [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,938 | 2,924 |
Products And Services, Deposit Accounts Service Charges [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,762 | 1,833 |
Products And Services, Fiduciary Services Income [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,600 | 1,631 |
Products And Services, Brokerage and Insurance Commissions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,093 | 994 |
Products And Services, Other Income [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 422 | $ 400 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Supplemental Employee Retirement Plan [Member] | ||
Net periodic pension cost | ||
Service cost | $ 70 | $ 133 |
Interest cost | 189 | 115 |
Recognized net actuarial loss | 0 | 216 |
Net period benefit cost | 259 | 464 |
Other Postretirement Benefit Plan | ||
Net periodic pension cost | ||
Service cost | 3 | 5 |
Interest cost | 40 | 28 |
Recognized net actuarial loss | (1) | 22 |
Amortization of prior service credit | (6) | (6) |
Net period benefit cost | $ 36 | $ 49 |
EPS (Computation of Basic and D
EPS (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net income | $ 12,727 | $ 16,795 |
Dividends and undistributed earnings allocated to participating securities | (25) | (43) |
Net income available to common shareholders | $ 12,702 | $ 16,752 |
Weighted-average common shares outstanding for basic EPS | 14,573,122 | 14,741,271 |
Dilutive effect of stock-based awards (shares) | 58,420 | 81,061 |
Weighted-average common and potential common shares for diluted EPS (shares) | 14,631,542 | 14,822,332 |
Basic EPS (in dollars per share) | $ 0.87 | $ 1.14 |
Diluted EPS (in dollars per share) | $ 0.87 | $ 1.13 |
EPS (Additional Information) (D
EPS (Additional Information) (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Performance Shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Stock options (shares) | 1,141 | 1,027 |
FAIR VALUE MEASUREMENT AND DI_3
FAIR VALUE MEASUREMENT AND DISCLOSURE (Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Trading securities | $ 3,971 | $ 3,990 |
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 686,423 | 695,875 |
Loans held for sale | 4,539 | 5,259 |
Financial liabilities: | ||
Debt Securities, Trading | 3,971 | 3,990 |
Obligations of states and political subdivisions | ||
Financial assets: | ||
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 49,051 | 49,226 |
MBS issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 507,831 | 514,019 |
CMO issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 106,233 | 109,347 |
Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Trading securities | 3,971 | 3,990 |
Loans held for sale | 4,562 | 5,197 |
Financial liabilities: | ||
Debt Securities, Trading | 3,971 | 3,990 |
Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ||
Financial assets: | ||
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 49,051 | 49,226 |
Fair Value, Measurements, Recurring | MBS issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 507,831 | 514,019 |
Fair Value, Measurements, Recurring | CMO issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 106,233 | 109,347 |
Fair Value, Measurements, Recurring | Corporate Bond Securities [Member] | ||
Financial assets: | ||
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 23,308 | 23,283 |
Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Trading securities | 3,971 | 3,990 |
Loans held for sale | 0 | 0 |
Financial liabilities: | ||
Debt Securities, Trading | 3,971 | 3,990 |
Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ||
Financial assets: | ||
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 0 | 0 |
Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | MBS issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 0 | 0 |
Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | CMO issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 0 | 0 |
Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | Corporate Bond Securities [Member] | ||
Financial assets: | ||
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 0 | 0 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Trading securities | 0 | 0 |
Loans held for sale | 4,562 | 5,197 |
Financial liabilities: | ||
Debt Securities, Trading | 0 | 0 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ||
Financial assets: | ||
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 49,051 | 49,226 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | MBS issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 507,831 | 514,019 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | CMO issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 106,233 | 109,347 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Corporate Bond Securities [Member] | ||
Financial assets: | ||
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 23,308 | 23,283 |
Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Trading securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Financial liabilities: | ||
Debt Securities, Trading | 0 | 0 |
Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ||
Financial assets: | ||
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 0 | 0 |
Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | MBS issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 0 | 0 |
Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | CMO issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 0 | 0 |
Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | Corporate Bond Securities [Member] | ||
Financial assets: | ||
Available-for-sale securities, at fair value (amortized cost of $777,621 and $796,960, respectively) | 0 | 0 |
Interest Rate Lock Commitments [Member] | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 71 | 31 |
Financial liabilities: | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 43 | 87 |
Interest Rate Lock Commitments [Member] | Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 0 | 0 |
Financial liabilities: | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 0 | |
Interest Rate Lock Commitments [Member] | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 71 | 31 |
Financial liabilities: | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 43 | 87 |
Interest Rate Lock Commitments [Member] | Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 0 | 0 |
Financial liabilities: | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 0 | 0 |
Forward delivery commitments | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 32 | 114 |
Financial liabilities: | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 14 | |
Forward delivery commitments | Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 0 | 0 |
Forward delivery commitments | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 32 | 114 |
Financial liabilities: | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 14 | |
Forward delivery commitments | Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 0 | 0 |
Financial liabilities: | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 0 | |
Customer loan swaps | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 11,479 | 14,802 |
Financial liabilities: | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 11,554 | 14,850 |
Customer loan swaps | Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 0 | 0 |
Financial liabilities: | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 0 | 0 |
Customer loan swaps | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 11,479 | 14,802 |
Financial liabilities: | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 11,554 | 14,850 |
Customer loan swaps | Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 0 | 0 |
Financial liabilities: | ||
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 0 | 0 |
Interest rate contracts | ||
Financial assets: | ||
Fair Value | 10,996 | 13,051 |
Financial liabilities: | ||
Derivative Liability | 6,859 | 5,515 |
Interest rate contracts | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Fair Value | 10,996 | 13,051 |
Financial liabilities: | ||
Derivative Liability | 6,859 | 5,515 |
Interest rate contracts | Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Fair Value | 0 | 0 |
Financial liabilities: | ||
Derivative Liability | 0 | |
Interest rate contracts | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Fair Value | 10,996 | 13,051 |
Financial liabilities: | ||
Derivative Liability | 6,859 | 5,515 |
Interest rate contracts | Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Fair Value | 0 | 0 |
Financial liabilities: | ||
Derivative Liability | $ 0 | $ 0 |
FAIR VALUE MEASUREMENT AND DI_4
FAIR VALUE MEASUREMENT AND DISCLOSURE (Schedule of Carrying Amounts and Estimated Fair Value for Financial Instrument Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financial assets: | ||
Held-to-maturity securities, at amortized cost | $ 540,074 | $ 546,583 |
Held-to-maturity securities, fair value | 510,999 | 506,193 |
Mortgage servicing rights | 4,187 | 4,412 |
Financial liabilities: | ||
Time deposits | 351,795 | 291,568 |
Short-term Debt, Fair Value | 485,505 | 264,779 |
Subordinated debentures | 31,918 | 31,032 |
Commercial Real Estate | ||
Financial assets: | ||
Loans receivable, net of allowance | 1,586,974 | 1,550,379 |
Commercial | ||
Financial assets: | ||
Loans receivable, net of allowance | 405,429 | 414,353 |
Residential real estate | ||
Financial assets: | ||
Loans receivable, net of allowance | 1,509,387 | 1,494,707 |
Home equity | ||
Financial assets: | ||
Loans receivable, net of allowance | 228,821 | 237,967 |
Consumer | ||
Financial assets: | ||
Loans receivable, net of allowance | 16,993 | 17,853 |
Readily Available Market Prices (Level 1) | ||
Financial assets: | ||
Held-to-maturity securities, fair value | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Financial liabilities: | ||
Time deposits | 0 | 0 |
Short-term Debt, Fair Value | 0 | 0 |
Subordinated debentures | 0 | 0 |
Readily Available Market Prices (Level 1) | Commercial Real Estate | ||
Financial assets: | ||
Loans receivable, net of allowance | 0 | 0 |
Readily Available Market Prices (Level 1) | Commercial | ||
Financial assets: | ||
Loans receivable, net of allowance | 0 | 0 |
Readily Available Market Prices (Level 1) | Residential real estate | ||
Financial assets: | ||
Loans receivable, net of allowance | 0 | 0 |
Readily Available Market Prices (Level 1) | Home equity | ||
Financial assets: | ||
Loans receivable, net of allowance | 0 | 0 |
Readily Available Market Prices (Level 1) | Consumer | ||
Financial assets: | ||
Loans receivable, net of allowance | 0 | 0 |
Observable Market Data (Level 2) | ||
Financial assets: | ||
Held-to-maturity securities, fair value | 510,999 | 506,193 |
Mortgage servicing rights | 0 | 0 |
Financial liabilities: | ||
Time deposits | 351,795 | 291,568 |
Short-term Debt, Fair Value | 485,505 | 264,779 |
Subordinated debentures | 31,918 | 31,032 |
Observable Market Data (Level 2) | Commercial Real Estate | ||
Financial assets: | ||
Loans receivable, net of allowance | 0 | 0 |
Observable Market Data (Level 2) | Commercial | ||
Financial assets: | ||
Loans receivable, net of allowance | 0 | 0 |
Observable Market Data (Level 2) | Residential real estate | ||
Financial assets: | ||
Loans receivable, net of allowance | 0 | 0 |
Observable Market Data (Level 2) | Home equity | ||
Financial assets: | ||
Loans receivable, net of allowance | 0 | 0 |
Observable Market Data (Level 2) | Consumer | ||
Financial assets: | ||
Loans receivable, net of allowance | 0 | 0 |
Company Determined Fair Value (Level 3) | ||
Financial assets: | ||
Held-to-maturity securities, fair value | 0 | 0 |
Mortgage servicing rights | 4,187 | 4,412 |
Financial liabilities: | ||
Time deposits | 0 | 0 |
Short-term Debt, Fair Value | 0 | 0 |
Subordinated debentures | 0 | 0 |
Company Determined Fair Value (Level 3) | Commercial Real Estate | ||
Financial assets: | ||
Loans receivable, net of allowance | 1,586,974 | 1,550,379 |
Company Determined Fair Value (Level 3) | Commercial | ||
Financial assets: | ||
Loans receivable, net of allowance | 404,847 | 414,353 |
Company Determined Fair Value (Level 3) | Residential real estate | ||
Financial assets: | ||
Loans receivable, net of allowance | 1,509,387 | 1,494,707 |
Company Determined Fair Value (Level 3) | Home equity | ||
Financial assets: | ||
Loans receivable, net of allowance | 228,821 | 237,967 |
Company Determined Fair Value (Level 3) | Consumer | ||
Financial assets: | ||
Loans receivable, net of allowance | 16,993 | 17,853 |
Carrying Amount | ||
Financial assets: | ||
Held-to-maturity securities, at amortized cost | 540,074 | 546,583 |
Mortgage servicing rights | 2,413 | 2,458 |
Financial liabilities: | ||
Time deposits | 360,103 | 300,451 |
Short-term Debt, Fair Value | 486,318 | 265,176 |
Subordinated debentures | 44,331 | 44,331 |
Carrying Amount | Commercial Real Estate | ||
Financial assets: | ||
Loans receivable, net of allowance | 1,647,823 | 1,605,279 |
Carrying Amount | Commercial | ||
Financial assets: | ||
Loans receivable, net of allowance | 416,518 | 424,685 |
Carrying Amount | Residential real estate | ||
Financial assets: | ||
Loans receivable, net of allowance | 1,722,335 | 1,691,177 |
Carrying Amount | Home equity | ||
Financial assets: | ||
Loans receivable, net of allowance | 230,072 | 232,203 |
Carrying Amount | Consumer | ||
Financial assets: | ||
Loans receivable, net of allowance | $ 19,226 | $ 20,087 |