Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Feb. 23, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Independent Bank Corp | |
Entity Central Index Key | 776,901 | |
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | FY | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Public Float | $ 1,788,617,441 | |
Entity Common Stock, Shares Outstanding | 27,505,766 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and due from banks | $ 103,485,000 | $ 97,196,000 |
Interest-earning deposits with banks | 109,631,000 | 191,899,000 |
Securities | ||
Trading Securities | 1,324,000 | 804,000 |
Securities - available for sale | 447,498,000 | 363,644,000 |
Securities - held to maturity (fair value $494,194 and $485,650) | 497,688,000 | 487,076,000 |
Total securities | 946,510,000 | 851,524,000 |
Loans held for sale (at fair value) | 4,768,000 | 6,139,000 |
Loans | ||
Commercial and industrial | 888,528,000 | 902,053,000 |
Commercial real estate | 3,116,561,000 | 3,010,798,000 |
Commercial construction | 401,797,000 | 320,391,000 |
Small business | 132,370,000 | 122,726,000 |
Residential real estate | 754,329,000 | 644,426,000 |
Loans and Leases Receivable Consumer Home Equity in First Position | 612,990,000 | 577,006,000 |
Loans and Leases Receivable Consumer Home Equity in Subordinated Position | 439,098,000 | 411,141,000 |
Other consumer | 9,880,000 | 11,064,000 |
Total loans | 6,355,553,000 | 5,999,605,000 |
Less: allowance for loan losses | (60,643,000) | (61,566,000) |
Net loans | 6,294,910,000 | 5,938,039,000 |
Federal Home Loan Bank stock | 11,597,000 | 11,497,000 |
Bank premises and equipment, net | 94,722,000 | 78,480,000 |
Goodwill | 231,806,000 | 221,526,000 |
Other intangible assets | 9,341,000 | 9,848,000 |
Cash surrender value of life insurance policies | 151,528,000 | 144,503,000 |
Other real estate owned and other foreclosed assets | 612,000 | 4,173,000 |
Other assets | 123,119,000 | 154,551,000 |
Total assets | 8,082,029,000 | 7,709,375,000 |
Deposits | ||
Demand deposits | 2,159,396,000 | 2,057,086,000 |
Savings and interest checking accounts | 2,599,922,000 | 2,469,237,000 |
Money market | 1,325,634,000 | 1,236,778,000 |
Time certificates of deposit of $100,000 and over | 278,531,000 | 266,190,000 |
Other time certificates of deposits | 365,770,000 | 382,962,000 |
Total deposits | 6,729,253,000 | 6,412,253,000 |
Borrowings | ||
Advances from Federal Home Loan Banks | 53,264,000 | 50,819,000 |
Securities Sold under Agreements to Repurchase | 162,679,000 | 176,913,000 |
Junior subordinated debentures (less unamortized debt issuance costs $125 and $136) | 73,073,000 | 73,107,000 |
Subordinated debentures (less unamortized debt issuance costs of $318 and $365) | 34,682,000 | 34,635,000 |
Total borrowings | 323,698,000 | 335,474,000 |
Other liabilities | 85,269,000 | 96,958,000 |
Total liabilities | 7,138,220,000 | 6,844,685,000 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Preferred stock, $.01 par value. authorized: 1,000,000 shares, outstanding: none | 0 | 0 |
Common stock, $.01 par value. authorized: 75,000,000 shares, issued and outstanding: 27,450,190 shares at December 31, 2017 and 27,005,813 shares at December 31, 2016 (includes 177,191 and 212,698 shares of unvested participating restricted stock awards, respectively) | 273,000 | 268,000 |
Value of shares held in rabbi trust at cost: 164,438 shares at December 31, 2017 and 170,036 shares at December 31, 2016 | (4,590,000) | (4,277,000) |
Compensation and Benefits Trust | 4,590,000 | 4,277,000 |
Additional paid in capital | 479,430,000 | 451,664,000 |
Retained earnings | 465,937,000 | 414,095,000 |
Accumulated other comprehensive loss, net of tax | (1,831,000) | (1,337,000) |
Total stockholders' equity | 943,809,000 | 864,690,000 |
Liabilities and Equity | $ 8,082,029,000 | $ 7,709,375,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Time certificates of deposit least amount | $ 100,000 | $ 100,000 |
Securities held to maturity, fair value | $ 494,194,000 | $ 485,650,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 27,450,190 | 27,005,813 |
Common stock, unvested restricted Stock awards | 177,191 | 212,698 |
Shares held in rabbit trust at cost | 164,438 | 170,036 |
Common Stock Outstanding | ||
Common stock, shares outstanding | 27,450,190 | 27,005,813 |
Junior Subordinated Debt [Member] | ||
Unamortized Debt Issuance Expense | $ 125,000,000 | $ 136,000,000 |
Subordinated Debt [Member] | ||
Unamortized Debt Issuance Expense | $ 318,000,000 | $ 365,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest income | |||
Interest and fees on loans | $ 253,131,000 | $ 224,244,000 | $ 214,724,000 |
Interest Income, Securities, Operating, Taxable | 22,465,000 | 20,851,000 | 20,120,000 |
Nontaxable interest and dividends on securities | 88,000 | 117,000 | 127,000 |
Interest on loans held for sale | 92,000 | 235,000 | 225,000 |
Interest on federal funds sold and short-term investments | 1,418,000 | 1,190,000 | 349,000 |
Total interest and dividend income | 277,194,000 | 246,637,000 | 235,545,000 |
Interest expense | |||
Interest on deposits | 12,702,000 | 11,140,000 | 11,576,000 |
Interest on borrowings | 5,632,000 | 7,653,000 | 9,041,000 |
Total interest expense | 18,334,000 | 18,793,000 | 20,617,000 |
Net interest income | 258,860,000 | 227,844,000 | 214,928,000 |
Provision (benefit) | 2,950,000 | 6,075,000 | 1,500,000 |
Net interest income after provision for loan losses | 255,910,000 | 221,769,000 | 213,428,000 |
Noninterest income | |||
Deposit account fees | 17,822,000 | 18,652,000 | 18,560,000 |
Interchange and ATM fees | 17,291,000 | 16,210,000 | 14,728,000 |
Investment management | 23,802,000 | 21,809,000 | 20,735,000 |
Fees and Commission Mortgage Banking | 4,960,000 | 6,607,000 | 5,163,000 |
Increase in cash surrender value of life insurance policies | 4,127,000 | 4,089,000 | 3,692,000 |
Available-For-Sale Securities - Fixed Income Gross Realized Gains | 0 | 0 | 798,000 |
Gain (Loss) on Sale of Equity Investments | 19,000 | 6,000 | 20,000 |
Loan level derivative income | 3,836,000 | 6,155,000 | 3,830,000 |
Other noninterest income | 11,137,000 | 8,900,000 | 8,362,000 |
Total noninterest income | 82,994,000 | 82,428,000 | 75,888,000 |
Noninterest expenses | |||
Salaries and employee benefits | 116,600,000 | 108,636,000 | 105,068,000 |
Occupancy and equipment expenses | 24,693,000 | 22,867,000 | 23,020,000 |
Data processing & facilities management | 4,988,000 | 4,975,000 | 4,631,000 |
FDIC assessment | 3,068,000 | 3,380,000 | 3,979,000 |
Advertising expense | 4,989,000 | 5,202,000 | 4,645,000 |
Consulting expense | 4,038,000 | 3,486,000 | 3,680,000 |
Debit Card Expense | 3,430,000 | 2,993,000 | 2,456,000 |
Gains (Losses) on Extinguishment of Debt | 0 | 437,000 | 122,000 |
Available-for-Sale Securities - Fixed Income Gross Realized Losses | 0 | 0 | 1,124,000 |
Available-For-Sale Securities - Equity Gross Realized Losses | 16,000 | 32,000 | 99,000 |
Merger and acquisition expense | 3,393,000 | 5,455,000 | 10,501,000 |
Software Maintenance | 3,636,000 | 3,061,000 | 2,759,000 |
Other noninterest expenses | 35,508,000 | 31,598,000 | 35,054,000 |
Total noninterest expenses | 204,359,000 | 192,122,000 | 197,138,000 |
Income before income taxes | 134,545,000 | 112,075,000 | 92,178,000 |
Provision for income taxes | 47,341,000 | 35,427,000 | 27,218,000 |
Net Income | $ 87,204,000 | $ 76,648,000 | $ 64,960,000 |
Basic earnings per share (in dollars per share) | $ 3.19 | $ 2.90 | $ 2.51 |
Diluted earnings per share (in dollars per share) | $ 3.19 | $ 2.90 | $ 2.50 |
Weighted average common shares (basic) (in shares) | 27,294,028 | 26,404,071 | 25,891,382 |
Common share equivalents (in shares) | 78,076 | 51,847 | 68,566 |
Weighted average common shares (diluted) (in shares) | 27,372,104 | 26,455,918 | 25,959,948 |
Retained Earnings | |||
Noninterest expenses | |||
Net Income | $ 87,204,000 | $ 76,648,000 | $ 64,960,000 |
Cash dividends declared (in dollars per share) | $ 1.28 | $ 1.16 | $ 1.04 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 87,204 | $ 76,648 | $ 64,960 | |
Other comprehensive income (loss), net of tax | ||||
Net change in fair value of securities available for sale | (677) | (1,133) | (2,083) | |
Net change in fair value of cash flow hedges | 443 | 2,170 | 1,199 | |
Net change in other comprehensive income for defined benefit postretirement plans | [1] | (260) | 78 | 564 |
Total other comprehensive income (loss) | (494) | 1,115 | (320) | |
Total comprehensive income | $ 86,710 | $ 77,763 | $ 64,640 | |
[1] | The amortization of prior service costs is included in the computation of net periodic pension costs as disclosed in Note 15 - Employee Benefit Plans. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock Outstanding | Common Stock | Value of Shares Held in Rabbi Trust at Cost | Deferred Compensation Obligation | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | |
Common Stock, Dividends, Per Share, Declared | $ 1.04 | ||||||||
Beginning balance at Dec. 31, 2014 | $ 640,527 | $ 237 | $ (3,666) | $ 3,666 | $ 311,978 | $ 330,444 | $ (2,132) | ||
Beginning balance (in shares) at Dec. 31, 2014 | 23,998,738 | ||||||||
Net income | 64,960 | 64,960 | |||||||
Other comprehensive loss | (320) | (320) | |||||||
Common dividend declared | (27,235) | (27,235) | |||||||
Common stock issued for acquisition | 86,415 | 21 | 86,394 | ||||||
Common stock issued for acquisition (in shares) | 2,052,137 | ||||||||
Proceeds from exercise of stock options, net of cash paid | 1,367 | 1 | 1,366 | ||||||
Proceeds from exercise of stock options (in shares) | 100,794 | ||||||||
Tax benefit related to equity award activity | 1,042 | 1,042 | |||||||
Stock based compensation | 2,490 | 2,490 | |||||||
Restricted stock awards issued, net of awards surrendered (in shares) | 23,851 | ||||||||
Restricted stock awards issued, net of awards surrendered | (657) | 1 | (658) | ||||||
Stock Issued During Period, Shares, Other | 60,832 | ||||||||
Stock Issued During Period, Value, Other | 2,695 | 2,695 | |||||||
Increase (Decrease) in Deferred Compensation | (292) | 292 | |||||||
Tax benefit related to deferred compensation distributions | 179 | 179 | |||||||
Ending balance (in shares) at Dec. 31, 2015 | 26,236,352 | ||||||||
Ending balance at Dec. 31, 2015 | 771,463 | 260 | (3,958) | 3,958 | 405,486 | $ 368,169 | (2,452) | ||
Common Stock, Dividends, Per Share, Declared | $ 1.16 | ||||||||
Net income | 76,648 | $ 76,648 | |||||||
Other comprehensive loss | 1,115 | 1,115 | |||||||
Common dividend declared | (30,722) | (30,722) | |||||||
Common stock issued for acquisition | 40,730 | 7 | 40,723 | ||||||
Common stock issued for acquisition (in shares) | 672,665 | ||||||||
Proceeds from exercise of stock options, net of cash paid | 201 | 0 | 201 | ||||||
Proceeds from exercise of stock options (in shares) | 13,449 | ||||||||
Tax benefit related to equity award activity | 476 | 476 | |||||||
Stock based compensation | 2,965 | 2,965 | |||||||
Restricted stock awards issued, net of awards surrendered (in shares) | 33,432 | ||||||||
Restricted stock awards issued, net of awards surrendered | (696) | 1 | (697) | ||||||
Stock Issued During Period, Shares, Other | 49,915 | ||||||||
Stock Issued During Period, Value, Other | 2,323 | 2,323 | |||||||
Increase (Decrease) in Deferred Compensation | 0 | (319) | 319 | ||||||
Tax benefit related to deferred compensation distributions | 187 | 187 | |||||||
Ending balance (in shares) at Dec. 31, 2016 | 27,005,813 | ||||||||
Ending balance at Dec. 31, 2016 | 864,690 | 268 | (4,277) | 4,277 | 451,664 | $ 414,095 | (1,337) | ||
Common Stock, Dividends, Per Share, Declared | $ 1.28 | ||||||||
Net income | 87,204 | $ 87,204 | |||||||
Other comprehensive loss | (494) | (494) | |||||||
Common dividend declared | (34,997) | (34,997) | |||||||
Common stock issued for acquisition | 23,468 | 4 | 23,464 | ||||||
Common stock issued for acquisition (in shares) | 369,286 | ||||||||
Proceeds from exercise of stock options, net of cash paid | 214 | 214 | |||||||
Proceeds from exercise of stock options (in shares) | 19,340 | ||||||||
Stock based compensation | 3,333 | 3,333 | |||||||
Restricted stock awards issued, net of awards surrendered (in shares) | 31,665 | ||||||||
Restricted stock awards issued, net of awards surrendered | (1,422) | 1 | (1,423) | ||||||
Stock Issued During Period, Shares, Other | 24,086 | ||||||||
Stock Issued During Period, Value, Other | 1,636 | 1,636 | |||||||
Increase (Decrease) in Deferred Compensation and Other Retirement Benefits | (313) | 313 | |||||||
Ending balance (in shares) at Dec. 31, 2017 | 27,450,190 | ||||||||
Ending balance at Dec. 31, 2017 | 943,809 | $ 273 | $ (4,590) | $ 4,590 | 479,430 | 465,937 | $ (1,831) | ||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | [1] | $ 177 | $ 542 | $ (365) | |||||
[1] | Represents adjustment needed to reflect the cumulative impact on retained earnings for previously recognized stock based compensation, which included an adjustment for estimated forfeitures. Pursuant to the Company's adoption of Accounting Standards Update 2016-09, the Company has elected to recognize stock based compensation without inclusion of a forfeiture estimate, and as such has recognized this adjustment to present retained earnings consistent with this election. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Cash flow from operating activities | |||
Net income | $ 87,204,000 | $ 76,648,000 | $ 64,960,000 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 15,681,000 | 14,354,000 | 12,307,000 |
Provision for loan losses | 2,950,000 | 6,075,000 | 1,500,000 |
Deferred income tax expense (benefit) | 9,211,000 | (5,000) | 10,220,000 |
Tax Expense related to a change in tax law | 466,000 | 0 | 0 |
Loss on write-down of investments in securities available for sale | (3,000) | 26,000 | 405,000 |
Net (gain) loss on bank premises and equipment | (108,000) | 114,000 | 221,000 |
Loss on extinguishment of debt | 0 | 437,000 | 122,000 |
Net loss on other real estate owned and foreclosed assets | 288,000 | 29,000 | 1,152,000 |
Realized gain on sale leaseback transaction | (1,034,000) | (1,034,000) | (1,034,000) |
Stock based compensation | 3,333,000 | 2,965,000 | 2,490,000 |
Excess tax benefit related to equity award activity | 0 | (476,000) | (1,042,000) |
Increase in cash surrender value of life insurance policies | (4,127,000) | (4,089,000) | (3,692,000) |
Change in Fair Value on Loans Held for Sale | 113,000 | (87,000) | 22,000 |
Net change in: | |||
Trading assets | (520,000) | (448,000) | (356,000) |
Loans held for sale | 1,258,000 | (62,000) | 876,000 |
Other assets | 20,022,000 | 7,627,000 | 3,842,000 |
Other liabilities | (3,825,000) | (8,738,000) | (2,450,000) |
Total adjustments | 43,705,000 | 16,688,000 | 24,583,000 |
Net cash provided by operating activities | 130,909,000 | 93,336,000 | 89,543,000 |
Cash flows used in investing activities | |||
Proceeds from sales of securities available for sale | 1,027,000 | 618,000 | 14,199,000 |
Proceeds from maturities and principal repayments of securities available for sale | 54,191,000 | 69,775,000 | 78,497,000 |
Purchases of securities available for sale | (140,885,000) | (69,671,000) | (73,064,000) |
Proceeds from maturities and principal repayments of securities held to maturity | 78,757,000 | 90,991,000 | 60,168,000 |
Purchases of securities held to maturity | (89,033,000) | (100,198,000) | (162,021,000) |
Net redemption of Federal Home Loan Bank stock | 386,000 | 5,229,000 | 23,054,000 |
Investments in low income housing projects | (7,645,000) | (7,626,000) | (15,055,000) |
Purchases of life insurance policies | (164,000) | (163,000) | (162,000) |
Net increase in loans | (204,702,000) | (227,838,000) | (114,550,000) |
Cash Acquired in Excess of Payments to Acquire Business | 6,289,000 | 8,668,000 | |
Net cash acquired (used) in business combinations | (13,448,000) | ||
Purchases of bank premises and equipment | (25,080,000) | (10,395,000) | (10,488,000) |
Proceeds from the sale of bank premises and equipment | 6,306,000 | 345,000 | 1,233,000 |
Proceeds from the sale of other real estate owned and foreclosed assets | 3,784,000 | 1,583,000 | 7,667,000 |
Net payments relating to other real estate owned and foreclosed assets | 0 | (204,000) | (1,571,000) |
Net cash used in investing activities | (316,769,000) | (238,886,000) | (205,541,000) |
Cash flows provided by financing activities | |||
Net decrease in time deposits | (19,509,000) | (104,803,000) | (80,726,000) |
Net increase in other deposits | 177,241,000 | 350,739,000 | 428,713,000 |
Net repayments of short-term Federal Home Loan Bank borrowings | 0 | (37,000,000) | (10,000,000) |
Repayments of long-term Federal Home Loan Bank borrowings | 0 | (65,791,000) | (9,000,000) |
Net increase (decrease) in customer repurchase agreements | (14,234,000) | 42,955,000 | (13,932,000) |
Increase (Decrease) in Payables under Repurchase Agreements | 0 | 0 | (50,000,000) |
Repayments of Subordinated Debt | 0 | 0 | (30,000,000) |
Net proceeds from exercise of stock options | 214,000 | 201,000 | 1,367,000 |
Restricted stock awards issued, net of awards surrendered | (1,422,000) | (696,000) | (657,000) |
Excess tax benefit from stock based compensation | 476,000 | 1,042,000 | |
Tax benefit from deferred compensation distribution | 187,000 | 179,000 | |
Proceeds from shares issued under the direct stock purchase plan | 1,636,000 | 2,323,000 | 2,695,000 |
Common dividends paid | (34,045,000) | (29,711,000) | (26,172,000) |
Net cash provided by financing activities | 109,881,000 | 158,880,000 | 213,509,000 |
Net increase (decrease) in cash and cash equivalents | (75,979,000) | 13,330,000 | 97,511,000 |
Cash and cash equivalents at beginning of year | 289,095,000 | 275,765,000 | 178,254,000 |
Cash and cash equivalents at end of period | 213,116,000 | 289,095,000 | 275,765,000 |
Supplemental schedule of noncash investing and financing activities | |||
Interest on deposits and borrowings | 18,626,000 | 18,963,000 | 20,773,000 |
Income taxes | 32,865,000 | 33,473,000 | 11,841,000 |
Transfer of loans to other real estate owned and foreclosed assets | 511,000 | 1,322,000 | 1,522,000 |
Real Estate Owned, Transfer to Real Estate Owned | 142,000 | ||
Capital commitment relating to Low Income Housing Project investments, noncash | 20,000 | 5,180,000 | 1,658,000 |
In conjunction with the Company's acquisitions, assets were acquired and liabilities were assumed as follows | |||
Common stock issued for acquisition | 23,468,000 | 40,730,000 | 86,415,000 |
Fair value of assets acquired, net of cash acquired | 179,252,000 | 266,242,000 | 598,376,000 |
Fair value of liabilities assumed | $ 162,073,000 | $ 234,180,000 | $ 498,513,000 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Independent Bank Corp. (the “Company”) is a bank holding company whose principal subsidiary is Rockland Trust Company (“Rockland Trust” or the “Bank”). Rockland Trust is a state-chartered commercial bank, which operates eighty-four full service and two limited service retail branches, thirteen commercial banking centers, six investment management offices and one mortgage lending center, all of which are located in Eastern Massachusetts, including Cape Cod and Martha's Vineyard, with the exception of an investment management group/commercial lending office located in Providence, Rhode Island. Rockland Trust deposits are insured by the Federal Deposit Insurance Corporation, subject to regulatory limits. The Company’s primary source of income is from providing loans to individuals and small-to-medium sized businesses in its market area. Rockland Trust is a community-oriented commercial bank, and the community banking business is the Company's only reportable operating segment. Principles of Consolidation The consolidated financial statements include the accounts of the Company, the Bank and other wholly-owned subsidiaries, except subsidiaries that are not deemed necessary to be consolidated. All significant intercompany balances and transactions have been eliminated in consolidation. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity under GAAP. Voting interest entities are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. The Company would consolidate voting interest entities in which it has all, or at least a majority of, the voting interest. As defined in applicable accounting standards, variable interest entities (“VIEs”) are entities that lack one or more of the characteristics of a voting interest entity. A controlling financial interest in a VIE is present when the Company has both the power and ability to direct the activities of the VIE that most significantly impact the VIE's economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The Company also owns the common stock of various trusts which have issued trust preferred securities. These trusts are VIEs in which the Company is not the primary beneficiary and, therefore, are not consolidated. The trust's only assets are junior subordinated debentures issued by the Company, which were acquired by the trust using the proceeds from the issuance of the trust preferred securities and common stock. The junior subordinated debentures are included in long-term debt and the Company’s equity interest in the trust is included in other assets in the accompanying Consolidated Balance Sheets. Interest expense on the junior subordinated debentures is reported in interest expense on long-term debt in the accompanying Consolidated Statements of Income. Reclassification Certain previously reported amounts have been reclassified to conform to the current year’s presentation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could vary from these estimates. Material estimates that are particularly susceptible to significant changes in the near-term relate to the determination of the allowance for loan losses, income taxes, valuation and potential impairment of investment securities, other-than-temporary impairment (“OTTI”) of certain investment securities, as well as valuation of goodwill and other intangibles and their respective analyses of impairment. Significant Concentrations of Credit Risk The vast majority of the Bank’s lending activities are conducted in the Commonwealth of Massachusetts and Rhode Island. The Bank originates commercial and industrial loans, commercial and residential real estate loans, including construction loans, small business loans, home equity loans, and other consumer loans for its portfolio. The Bank considers a concentration of credit to a particular industry to exist when the aggregate credit exposure which includes direct, indirect or contingent obligations to a borrower, an affiliated group of borrowers or a nonaffiliated group of borrowers engaged in one industry, exceeds 10% of the Bank’s loan portfolio. Loans originated by the Bank to lessors of nonresidential buildings represented 15.4% of the total loan portfolio at both December 31, 2017 and 2016 , respectively. Within this concentration category, the Company believes it is well diversified among collateral property types and tenant industries. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents may include cash on hand, amounts due from banks, inclusive of interest-earning deposits held at banks, and federal funds sold. Generally, federal funds are sold for up to two week periods. Securities Investment securities are classified at the time of purchase as “available for sale,” “held to maturity,” or “trading.” Classification is constantly re-evaluated for consistency with corporate goals and objectives. Trading securities are recorded at fair value with subsequent changes in fair value recorded in earnings. Debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. Securities not classified as held to maturity or trading, including equity securities with readily determinable fair values, are classified as “available for sale” and recorded at fair value, with changes in fair value excluded from earnings and reported in other comprehensive income, net of related tax. Purchase premiums and discounts are recognized in interest income, using the interest method, to arrive at periodic interest income at a constant effective yield, thereby reflecting the securities market yield. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Declines in the fair value of held to maturity and available for sale securities below their amortized cost deemed to be OTTI are written down to fair value as determined by a cash flow analysis. To the extent the estimated cash flows do not support the amortized cost, the deficiency is considered to be due to credit loss and recognized in earnings. Unless the Company intends to sell the security, or if it is more likely than not that the Company will be required to sell the debt security before its anticipated recovery, the remainder of the OTTI charge is considered to be due to other factors, such as liquidity or interest rates, and thus is not recognized in earnings, but rather through other comprehensive income, net of related tax. The Company evaluates individual securities that have fair values below cost for six months or longer, or for a shorter period of time if considered appropriate by management, to determine if the decline in fair value is other-than-temporary. Consideration is given to the obligor of the security, whether the security is guaranteed, whether there is a projected adverse change in cash flows, the liquidity of the security, the type of security, the capital position of security issuers, and payment history of the security, amongst other factors when evaluating such securities. Loans Held for Sale The Bank primarily classifies new residential real estate mortgage loans as held for sale based on intent, which is determined when loans are underwritten. Residential real estate mortgage loans not designated as held for sale are retained based upon available liquidity, for interest rate risk management and other business purposes. The Company has elected the fair value option to account for originated closed loans intended for sale. Accordingly, changes in fair value relating to loans intended for sale are recorded in earnings and are offset by changes in fair value relating to interest rate lock commitments and forward sales commitments. Gains and losses on residential loan sales (sales proceeds minus carrying amount) are recorded in mortgage banking income. Upfront costs and fees related to items for which the fair value option is elected are recognized in earnings as incurred and are not deferred. Loans Loans are carried at the principal amounts outstanding, or amortized acquired fair value in the case of acquired loans, adjusted by partial charge-offs and net of deferred loan costs or fees. For originated loans, loan fees and certain direct origination costs are deferred and amortized into interest income over the expected term of the loan using the level-yield method. When a loan is paid off, the unamortized portion is recognized in interest income. Interest income on loans is accrued based upon the daily principal amount outstanding except for loans on nonaccrual status. For acquired loans which did not show signs of credit deterioration at acquisition, interest income is also accrued based upon the daily principal amount outstanding and is then further adjusted by the accretion of any discount or amortization of any premium associated with the loan. As a general rule, loans more than 90 days past due with respect to principal or interest are classified as nonaccrual loans, or sooner if management considers such action to be prudent. However, loans that are more than 90 days past due may be kept on an accruing status if the loan is well secured and in the process of collection. The Company may also put a junior lien mortgage on nonaccrual status as a result of delinquency with respect to the first position, which is held by the Bank or by another financial institution, while the junior lien is currently performing. Income accruals are suspended on all nonaccrual loans and all previously accrued and uncollected interest is reversed against current income. A loan remains on nonaccrual status until it becomes current with respect to principal and interest (and in certain instances remains current for up to six months), the loan is liquidated, or when the loan is determined to be uncollectible and is charged-off against the allowance for loan losses. When doubt exists as to the collectability of a loan, any payments received are applied to reduce the recorded investment in the asset to the extent necessary to eliminate such doubt. For all loan portfolios, a charge-off occurs when the Company determines that a specific loan, or portion thereof, is uncollectible. This determination is made based on management's review of specific facts and circumstances of the individual loan, including assessing the viability of the customer’s business or project as a going concern, the expected cash flows to repay the loan, the value of the collateral and the ability and willingness of any guarantors to perform. In cases where a borrower experiences financial difficulties and the Company makes certain concessionary modifications to contractual terms, the loan is classified as a troubled debt restructuring (“TDR”). Modifications may include adjustments to interest rates, extensions of maturity, consumer loans where the borrower's obligations have been effectively discharged through Chapter 7 Bankruptcy and the borrower has not reaffirmed the debt to the Bank, and other actions intended to minimize economic loss and avoid foreclosure or repossession of collateral. The recorded investment of loans classified as TDRs is adjusted to reflect the changes in value, if any, resulting from the granting of a concession. Nonaccrual loans that are restructured remain on nonaccrual for a period of six months to demonstrate that the borrower can meet the restructured terms. If the restructured loan is on accrual status prior to being modified, it is reviewed to determine if the modified loan should remain on accrual status. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan is classified as a nonaccrual loan. Loans classified as TDRs remain classified as such for the life of the loan, except in limited circumstances, when it is determined that the borrower is performing under the modified terms and the restructuring agreement specified an interest rate greater than or equal to an acceptable market rate for a comparable new loan at the time of the restructuring. Acquired loans All acquired loans are recorded at fair value with no carryover of the allowance for loan losses. At acquisition, loans are also reviewed to determine if the loan has evidence of deterioration in credit quality and to review if it is probable, at acquisition, that all contractually required payments will not be collected. Such loans are deemed to be purchased credit impaired ("PCI") loans. Under the accounting model for PCI loans, the excess of cash flows expected to be collected over the carrying amount of the loans, referred to as the "accretable yield", is accreted into interest income over the life of the loans using the effective yield method. Accordingly, PCI loans are not subject to classification as nonaccrual in the same manner as originated loans. Rather, acquired loans are generally considered to be accruing loans because their interest income relates to the accretable yield recognized and not to contractual interest payments at the loan level. The difference between contractually required principal and interest payments and the cash flows expected to be collected, referred to as the "nonaccretable difference", includes estimates of both the impact of prepayments and future credit losses expected to be incurred over the life of the loans. The estimate of cash flows expected to be collected is regularly re-assessed subsequent to acquisition. These re-assessments involve updates, as necessary, of the key assumptions and estimates used in the initial estimate of fair value. Generally speaking, expected cash flows are affected by: • Changes in the expected principal and interest payments over the estimated life - Changes in expected cash flows may be driven by the credit outlook and actions taken with borrowers. Changes in expected future cash flows resulting from loan modifications are included in the assessment of expected cash flows. • Change in prepayment assumptions - Prepayments affect the estimated life of the loans, which may change the amount of interest income expected to be collected. • Change in interest rate indices for variable rate loans - Expected future cash flows are based, as applicable, on the variable rates in effect at the time of the assessment of expected cash flows. A decrease in expected cash flows in subsequent periods may indicate that the loan is impaired which would likely require the recognition of a charge-off against the allowance for loan losses or an establishment of a specific reserve. An increase in expected cash flows in subsequent periods serves, first, to reduce any previously established specific reserve by the increase in the present value of cash flows expected to be collected. Any increase above the previously established specific reserve results in a recalculation of the amount of accretable yield for the loan. The adjustment of accretable yield due to an increase in expected cash flows is accounted for as a change in estimate. The additional cash flows expected to be collected are reclassified from the nonaccretable difference to the accretable yield, and the amount of periodic accretion is adjusted accordingly over the remaining life of the loans. A PCI loan may be resolved either through receipt of payment (in full or in part) from the borrower, the sale of the loan to a third party, or foreclosure of the collateral. In the event of a sale of the loan, a gain or loss on sale would be recognized and reported within noninterest income based on the difference between the sales proceeds and the carrying amount of the loan. For PCI loans accounted for on an individual loan basis and resolved directly with the borrower, any amount received from resolution in excess of the carrying amount of the loan is recognized and reported within interest income. A refinancing or modification of a PCI loan accounted for individually is assessed to determine whether the modification represents a TDR. If the loan is considered to be a TDR, it will be included in the total impaired loans reported by the Company. The loan will continue to recognize interest income based upon the excess of cash flows expected to be collected over the carrying amount of the loan. Allowance for Loan Losses The allowance for loan losses is established based upon the level of estimated probable losses in the current loan portfolio. Loan losses are charged against the allowance when management believes the collectability of a loan balance is doubtful. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is allocated to loan types using both a formula-based approach applied to groups of loans and an analysis of certain individual loans for impairment. The formula-based approach emphasizes loss factors derived from actual historical portfolio loss rates, which are combined with an assessment of certain qualitative factors to determine the allowance amounts allocated to the various loan categories. Allowance amounts are determined based on an estimate of the historical average annual percentage rate of loan loss for each loan category, an estimate of the incurred loss emergence and confirmation period for each loan category, and certain qualitative risk factors considered in the computation of the allowance for loan losses. The qualitative risk factors impacting the inherent risk of loss within the portfolio include the following: • National and local economic and business conditions • Level and trend of delinquencies • Level and trend of charge-offs and recoveries • Trends in volume and terms of loans • Risk selection, lending policy and underwriting standards • Experience and depth of management • Banking industry conditions and other external factors • Concentration risk The formula-based approach evaluates groups of loans with common characteristics, which consist of similar loan types with similar terms and conditions, to determine the appropriate allocation within each portfolio section. This approach incorporates qualitative adjustments based upon management’s assessment of various market and portfolio specific risk factors into its formula-based estimate. Due to the imprecise nature of the loan loss estimation process and ever changing conditions, the qualitative risk attributes may not adequately capture amounts of incurred loss in the formula-based loan loss components used to determine the Bank’s analysis of the appropriateness of the allowance for loan losses. The Bank evaluates certain loans within the commercial and industrial, commercial real estate, commercial construction and small business portfolios individually for specific impairment. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, contractual interest rates and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Loans are selected for evaluation based upon a change in internal risk rating, occurrence of delinquency, loan classification, troubled debt restructuring or nonaccrual status. A specific allowance amount is allocated to an individual loan when such loan has been deemed impaired and when the amount of the probable loss is able to be estimated. Estimates of loss may be determined by the present value of anticipated future cash flows, the loan’s observable fair market value, or the fair value of the collateral, if the loan is collateral dependent. However, for collateral dependent loans, the amount of the recorded investment in a loan that exceeds the fair value of the collateral less costs to sell is charged-off against the allowance for loan losses in lieu of an allocation of a specific allowance amount when such an amount has been identified definitively as uncollectible. Large groups of small-balance homogeneous loans such as the residential real estate, residential construction, home equity and other consumer portfolios are collectively evaluated for impairment. As such, the Bank does not typically identify individual loans within these groupings as impaired loans for impairment evaluation and disclosure. However, the Bank evaluates all TDRs for impairment on an individual loan basis regardless of loan type. In the ordinary course of business, the Bank enters into commitments to extend credit, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded in the financial statements when they become payable. The credit risk associated with these commitments is evaluated in a manner similar to the allowance for loan losses. The reserve for unfunded lending commitments is included in other liabilities in the balance sheet. At December 31, 2017 and 2016 , the reserve for unfunded loan commitments was $972,000 and $954,000 , respectively. Transfers and Servicing of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Loans held for sale are generally sold with servicing rights released, however if rights are retained, servicing assets are recognized as separate assets. Servicing rights are originally recorded at fair value within other assets, but subsequently are amortized in proportion to and over the period of estimated net servicing income, and are assessed for impairment at each reporting date. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds, default rates and losses. Impairment is determined by stratifying the rights based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance, to the extent that fair value is less than the capitalized amount. If the Company later determines that all or a portion of the impairment no longer exists, a reduction of the allowance may be recorded as an increase to income. Servicing fee income is recorded for fees earned for servicing loans for investors. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan, and are recorded as income when earned. The amortization of mortgage servicing rights is recorded as a reduction of loan servicing fee income. Federal Home Loan Bank Stock The Company, as a member of the Federal Home Loan Bank (“FHLB”) of Boston, is required to maintain an investment in capital stock of the FHLB. Based on redemption provisions, the stock has no quoted market value and is carried at cost. The Company continually reviews its investment to determine if OTTI exists. The Company reviews recent public filings, rating agency analysis and other factors, when making its determination. Bank Premises and Equipment Land is carried at cost. Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line convention method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the lease terms or the estimated useful lives of the improvements. Expected terms include lease option periods to the extent that the exercise of such options is reasonably assured, not to exceed fifteen years. Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the net fair value of acquired businesses. Goodwill is not amortized and is assigned to one reporting unit. Goodwill is evaluated for impairment at least annually, or more often if warranted, using a combined qualitative and quantitative impairment approach. The initial qualitative approach assesses whether the existence of events or circumstances led to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, the Company determines it is more likely than not that the fair value is less than carrying value, the two step quantitative impairment test is performed. Step one of the quantitative impairment test compares book value to the fair value of the reporting unit. If step one is failed, a detailed step two analysis is performed, which involves measuring the excess of the fair value of the reporting unit, as determined in step one, over the aggregate fair value of the individual assets, liabilities, and identifiable intangibles as if the reporting unit was being acquired in a business combination. Other intangible assets subject to amortization consist of core deposit intangibles, noncompete agreements, customer lists and market-based favorable or unfavorable lease positions at time of acquisition, and are amortized over the estimated lives of the intangibles using a method that approximates the amount of economic benefits that are realized by the Company. Other intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The range of useful lives is as follows: Core deposit intangibles 10 years Noncompete agreements 1-3 years Leases 3-29 years The determination of which intangible assets have finite lives is subjective, as is the determination of the amortization period for such intangible assets. Impairment of Long-Lived Assets Other Than Goodwill The Company reviews long-lived assets, including premises and equipment, for impairment whenever events or changes in business circumstances indicate that the remaining useful life may warrant revision or that the carrying amount of the long-lived asset may not be fully recoverable. The Company performs undiscounted cash flow analysis to determine if impairment exists. If impairment is determined to exist, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. Cash Surrender Value of Life Insurance Policies Increases in the cash surrender value (“CSV”) of life insurance policies, as well as benefits received net of any CSV, are recorded in other noninterest income, and are not subject to income taxes. The CSV of the policies is recorded as an asset of the Bank, with liabilities recognized for any split dollar arrangements associated with the policies. The Company reviews the financial strength of the insurance carriers prior to the purchase of life insurance policies and no less than annually thereafter. Regulatory requirements limit the total amount of CSV to be held with any individual carrier to 15% of Tier 1 capital (as defined for regulatory purposes) and the total CSV of all life insurance policies is limited to 25% of Tier 1 capital. Other Real Estate Owned and Other Foreclosed Assets Real estate properties and other assets, which have served as collateral to secure loans, are held for sale and are initially recorded at fair value less estimated costs to sell at the date control is established, resulting in a new cost basis. The amount by which the recorded investment in the loan exceeds the fair value (net of estimated costs to sell) of the foreclosed asset is charged to the allowance for loan losses. Subsequent declines in the fair value of the foreclosed asset below the new cost basis are recorded through the use of a valuation allowance. Subsequent increases in the fair value are recorded as reductions in the valuation allowance, but not below zero. Upon a sale of a foreclosed asset, any excess of the carrying value over the sale proceeds is recognized as a loss on sale. Any excess of sale proceeds over the carrying value of the foreclosed asset is first applied as a recovery to the valuation allowance, if any, with the remainder being recognized as a gain on sale. Operating expenses and changes in the valuation allowance relating to foreclosed assets are included in other noninterest expense. Customer Repurchase Agreements In a security repurchase agreement transaction, the Company will generally sell a security, agreeing to repurchase either the same or substantially identical security on a specified later date, at a greater price than the original sales price. The difference between the sale price and purchase price is the cost of the proceeds, which is recorded as interest expense. The securities underlying the agreements are delivered to counterparties as security for the repurchase obligations. Since the securities are treated as collateral and the agreement does not qualify for a full transfer of effective control, the transactions do not meet the criteria to be classified as a sale, and are therefore considered a secured borrowing transaction for accounting purposes. Derivatives Derivative instruments are carried at fair value in the Company’s financial statements. The accounting for changes in the fair value of a derivative instrument is determined by whether it has been designated and qualifies as part of a hedging relationship, and further, by the type of hedging relationship. At the inception of a hedge, the Company documents certain items, including but not limited to the following: the relationship between hedging instruments and hedged items, the Company's risk management objectives, hedging strategies, and the evaluation of hedge transaction effectiveness. Documentation includes linking all derivatives designated as fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific forecasted transactions. For those derivative instruments that are designated and qualify for special hedge accounting, the Company designates the hedging instrument, based upon the exposure being hedged, as either a fair value hedge or a cash flow hedge. For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income, net of related tax, and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item (i.e., the ineffective portion), if any, is recognized in current earnings during the period. For derivative instruments designated and qualifying as a fair value hedge (i.e., hedging the exposure to changes in the fair value of an asset or liability or an identified portion thereof that is attribu |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2017 | |
Business Acquisition [Line Items] | |
ACQUISITIONS | ACQUISITIONS Island Bancorp, Inc. On May 12, 2017, the Company completed its acquisition of Island Bancorp, Inc., the parent of The Edgartown National Bank ("Island Bancorp"). The transaction qualified as a tax-free reorganization for federal income tax purposes and Island Bancorp shareholders received, for each share of Island Bancorp common stock, the right to receive either $500 in cash per share or 9.525 shares of the Company's stock (valued at $605.31 per share, based upon the highest trading value of the Company's stock on May 12, 2017 of $63.55 ). The total deal consideration was $28.3 million and was comprised of 20% cash and 80% stock consideration. The cash consideration was $4.8 million in the aggregate, inclusive of cash paid in lieu of fractional shares. The total stock consideration was $23.5 million resulting in an increase to the Company's outstanding shares of 369,286 shares. In addition to increasing its loan and deposit base, the Company will be able to provide a deeper product set to new customers, as well as benefit from increased operating synergies, improving the long-term operating and financial results of the Company. The Company accounted for the Island Bancorp acquisition using the acquisition method pursuant to the Business Combinations Topic of the FASB ASC. Accordingly, the Company recorded merger and acquisition expenses of $3.2 million for the year ended December 31, 2017 related to the Island Bancorp acquisition. Additionally, the acquisition method requires the acquirer to recognize the assets acquired and the liabilities assumed at their fair values as of the acquisition date. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed as of the date of the acquisition: Net Assets Acquired at Fair Value (Dollars in thousands) Assets Cash $ 11,137 Loans 155,551 Premises and equipment 5,828 Goodwill 10,280 Core deposit and other intangibles 2,964 Other assets 4,629 Total assets acquired 190,389 Liabilities Deposits 159,580 Borrowings 2,475 Other liabilities 18 Total liabilities assumed 162,073 Purchase price $ 28,316 Fair value adjustments to assets acquired and liabilities assumed are generally amortized using either an effective yield or straight-line basis over periods consistent with the average life, useful life and/or contractual term of the related assets and liabilities. Fair values of the major categories of assets acquired and liabilities assumed were determined as follows: Cash and Cash Equivalents The fair values of cash and cash equivalents approximate the respective carrying amounts because the instruments are payable on demand or have short-term maturities. Loans The loans acquired were recorded at fair value without a carryover of the allowance for loan losses. Fair value of the loans is determined using market participant assumptions in estimating the amount and timing of both principal and interest cash flows expected to be collected, as adjusted for an estimate of future credit losses and prepayments, and then applying a market-based discount rate to those cash flows. The overall discount on the loans acquired in this transaction was due to anticipated credit loss, as well as considerations for liquidity and market interest rates. In addition, the acquired loans were reviewed to determine if the loan had evidence of deterioration of credit quality at the purchase date and also reviewed to determine if it was probable that all contractually required payments will not be collected. Based on the review of the loan portfolio at the time of the acquisition, it was deemed that there was no evidence to show that any of the acquired loans were purchased credit impaired. Premises and Equipment The fair value of the premises, including land, buildings and improvements, was determined based upon appraisals by licensed real estate appraisers. The appraisals were based upon the best and highest use of the property with final values determined based upon an analysis of the cost, sales comparison and income capitalization approaches for each property appraised. Core Deposit Intangible The fair value of the core deposit intangible is derived by comparing the interest rate and servicing costs that the financial institution pays on the core deposit liability versus the current market rate for alternative sources of financing, while factoring in estimates over the remaining life and attrition rate of the deposit accounts. The intangible asset represents the stable and relatively low cost source of funds that the deposits and accompanying relationships provide the Company, when compared to alternative funding sources. Deposits The fair value of acquired savings and transaction deposit accounts was assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand. The fair value of time deposits were determined based on the present value of the contractual cash flows over the remaining period to maturity using a market interest rate. Borrowings The fair values of Federal Home Loan Bank ("FHLB") advances were derived based upon the present value of the principal and interest payments using a current market discount rate. Selected Pro Forma Results The following summarizes the unaudited pro forma results of operations as if the Company acquired Island Bancorp on January 1, 2017 (2016 amounts represent combined results for the Company and Island Bancorp). The selected pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the financial results of the combined companies had the acquisition actually been completed at the beginning of the periods presented, nor does it indicate future results for any other interim or full-year period. Years Ended December 31 2017 2016 (Dollars in thousands) Net interest income after provision for loan losses $ 258,017 $ 227,429 Net income 90,025 78,150 Excluded from the pro forma results of operations for the year ended December 31, 2017 are merger-related costs of $2.6 million , net of tax, recognized by both the Company and Island Bancorp in the aggregate. These costs were primarily made up of contract terminations arising due to the change in control, the acceleration of certain compensation and benefit costs, and other merger expenses. New England Bancorp, Inc. On November 10, 2016, the Company completed its acquisition of New England Bancorp, Inc. ("NEB"), the parent of Bank of Cape Cod. The transaction qualified as a tax-free reorganization for federal income tax purposes and NEB shareholders received, for each share of NEB common stock, the right to receive 0.25 shares of the Company's stock (valued at $15.14 per share, based upon the highest trading value of the Company's stock on November 10, 2016 of $60.55 ). The deal consideration was $41.7 million in the aggregate, inclusive of cash paid in lieu of fractional shares and resulted in an increase to the Company's outstanding shares of 672,665 shares. In addition to increasing its loan and deposit base, the Company will be able to provide a deeper product set to new customers, as well as benefit from increased operating synergies, improving the long-term operating and financial results of the Company. The Company accounted for the NEB acquisition using the acquisition method pursuant to the Business Combinations Topic of the FASB ASC. Accordingly, the Company recorded merger and acquisition expenses of $5.0 million , during the year ended December 31, 2016, related to the NEB transaction. Additionally, the acquisition method requires the acquirer to recognize the assets acquired and the liabilities assumed at their fair values as of the acquisition date. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed as of the date of the acquisition: Net Assets Acquired at Fair Value (Dollars in thousands) Assets Cash $ 9,679 Loans 225,731 Premises and equipment 201 Goodwill 20,443 Core deposit and other intangibles 670 Other assets 19,197 Total assets acquired 275,921 Liabilities Deposits 175,686 Borrowings 51,150 Other liabilities 7,344 Total liabilities assumed 234,180 Purchase price $ 41,741 Fair value adjustments to assets acquired and liabilities assumed are generally amortized using either an effective yield or straight-line basis over periods consistent with the average life, useful life and/or contractual term of the related assets and liabilities. Fair values of the major categories of assets acquired and liabilities assumed were determined as follows: Cash and Cash Equivalents The fair values of cash and cash equivalents approximate the respective carrying amounts because the instruments are payable on demand or have short-term maturities. Loans The loans acquired were recorded at fair value without a carryover of the allowance for loan losses. Fair value of the loans is determined using market participant assumptions in estimating the amount and timing of both principal and interest cash flows expected to be collected, as adjusted for an estimate of future credit losses and prepayments, and then applying a market-based discount rate to those cash flows. The overall discount on the loans acquired in this transaction was due to estimated credit risk, as well as considerations for liquidity and market interest rates. In addition, the acquired loans were reviewed to determine if the loan had evidence of deterioration of credit quality at the purchase date and also reviewed to determine if it was probable that all contractually required payments will not be collected. Based on the review of the loan portfolio at the time of the acquisition it was deemed that there was no evidence to show that any of the acquired loans were purchased credit impaired. Core Deposit Intangible The fair value of the core deposit intangible is derived by comparing the interest rate and servicing costs that the financial institution pays on the core deposit liability versus the current market rate for alternative sources of financing, while factoring in estimates over the remaining life and attrition rate of the deposit accounts. The intangible asset represents the stable and relatively low cost source of funds that the deposits and accompanying relationships provide the Company, when compared to alternative funding sources. Deposits The fair value of acquired savings and transaction deposit accounts was assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand. The fair value of time deposits were determined based on the present value of the contractual cash flows over the remaining period to maturity using a market interest rate. Borrowings The fair values of FHLB advances were derived based upon the present value of the principal and interest payments using a current market discount rate. Subsequent to the acquisition, the Company paid off all acquired borrowings at their recognized fair value amounts, resulting in no gain or loss on extinguishment. Selected Pro Forma Results The following summarizes the unaudited pro forma results of operations as if the Company acquired NEB on January 1, 2016 (2015 amounts represent combined results for the Company and NEB). The selected pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the financial results of the combined companies had the acquisition actually been completed at the beginning of the periods presented, nor does it indicate future results for any other interim or full-year period. Years Ended December 31 2016 2015 (Dollars in thousands) Net interest income after provision for loan losses $ 228,927 $ 221,252 Net income $ 80,411 $ 65,623 Excluded from the pro forma results of operations for the year ended December 31, 2016 are merger-related costs of $6.3 million recognized by both the Company and NEB in the aggregate and the corresponding tax benefit. These costs were primarily made up of contract terminations arising due to the change in control, the acceleration of certain compensation and benefit costs, and other merger expenses. |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | Trading Securities As of December 31, 2017 and December 31, 2016 the Company had trading securities of $1.3 million and $804,000 , respectively. These securities are held in a rabbi trust and will be used for future payments associated with the Company's non-qualified 401(k) Restoration Plan and Non-qualified Deferred Compensation Plan. Available for Sale and Held to Maturity Securities The following table presents a summary of the amortized cost, gross unrealized holding gains and losses and fair value of securities available for sale and securities held to maturity for the periods indicated: December 31, 2017 December 31, 2016 Amortized Gross Gross Unrealized Fair Amortized Gross Gross Unrealized Fair (Dollars in thousands) Available for sale securities U.S. government agency securities $ 35,475 $ 86 $ (131 ) $ 35,430 $ 24,006 $ 238 $ — $ 24,244 Agency mortgage-backed securities 214,934 1,897 (1,067 ) 215,764 173,268 2,852 (736 ) 175,384 Agency collateralized mortgage obligations 124,098 78 (2,164 ) 122,012 101,094 106 (1,332 ) 99,868 State, county, and municipal securities 2,237 37 — 2,274 3,743 50 — 3,793 Single issuer trust preferred securities issued by banks 2,012 4 — 2,016 2,311 3 (3 ) 2,311 Pooled trust preferred securities issued by banks and insurers 2,179 — (539 ) 1,640 2,200 — (616 ) 1,584 Small business administration pooled securities 47,852 44 (118 ) 47,778 37,561 — (372 ) 37,189 Equity securities 19,432 1,594 (442 ) 20,584 19,183 641 (553 ) 19,271 Total available for sale securities 448,219 3,740 (4,461 ) 447,498 363,366 3,890 (3,612 ) 363,644 Held to maturity securities U.S. treasury securities 1,006 29 — 1,035 1,007 47 — 1,054 Agency mortgage-backed securities 204,768 1,791 (736 ) 205,823 156,088 2,274 (858 ) 157,504 Agency collateralized mortgage obligations 262,998 397 (4,987 ) 258,408 297,445 1,002 (3,797 ) 294,650 Single issuer trust preferred securities issued by banks 1,500 29 — 1,529 1,500 44 — 1,544 Small business administration pooled securities 27,416 183 (200 ) 27,399 31,036 189 (327 ) 30,898 Total held to maturity securities 497,688 2,429 (5,923 ) 494,194 487,076 3,556 (4,982 ) 485,650 Total $ 945,907 $ 6,169 $ (10,384 ) $ 941,692 $ 850,442 $ 7,446 $ (8,594 ) $ 849,294 When securities are sold, the adjusted cost of the specific security sold is used to compute the gain or loss on the sale. The actual maturities of certain securities may differ from the contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. A schedule of the contractual maturities of securities available for sale and securities held to maturity as of December 31, 2017 is presented below: Available for Sale Held to Maturity Amortized Fair Amortized Fair (Dollars in thousands) Due in one year or less $ 3,213 $ 3,215 $ — $ — Due after one year to five years 49,241 49,312 15,636 15,711 Due after five to ten years 107,417 107,402 16,801 17,098 Due after ten years 268,916 266,985 465,251 461,385 Total debt securities 428,787 426,914 497,688 494,194 Equity securities 19,432 20,584 — — Total $ 448,219 $ 447,498 $ 497,688 $ 494,194 Inclusive in the table above is $9.4 million of callable securities at December 31, 2017 . The carrying value of securities pledged to secure public funds, trust deposits, repurchase agreements and for other purposes, as required or permitted by law, was $547.2 million and $482.1 million at December 31, 2017 and 2016 , respectively. At December 31, 2017 and 2016 , the Company had no investments in obligations of individual states, counties, or municipalities, which exceeded 10% of stockholders’ equity . Other-Than-Temporary Impairment The Company continually reviews investment securities for the existence of OTTI, taking into consideration current market conditions, the extent and nature of changes in fair value, issuer rating changes and trends, the credit worthiness of the obligor of the security, volatility of earnings, current analysts’ evaluations, the Company’s intent to sell the security, whether it is more likely than not that the Company will be required to sell the debt security before its anticipated recovery, as well as other qualitative factors. The term “other-than-temporary” is not intended to indicate that the decline is permanent, but indicates that the prospects for a near-term recovery of value is not necessarily favorable, or that there is a lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. The following tables show the gross unrealized losses and fair value of the Company’s investments in an unrealized loss position, which the Company has not deemed to be OTTI, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: December 31, 2017 Less than 12 months 12 months or longer Total Description of securities # of Fair Value Unrealized Fair Unrealized Fair Value Unrealized (Dollars in thousands) U.S. government agency securities 4 $ 24,343 $ (131 ) $ — $ — $ 24,343 $ (131 ) Agency mortgage-backed securities 84 $ 235,411 $ (1,493 ) $ 14,886 $ (310 ) $ 250,297 $ (1,803 ) Agency collateralized mortgage obligations 42 178,142 (1,579 ) 159,506 (5,572 ) 337,648 (7,151 ) Pooled trust preferred securities issued by banks and insurers 1 — — 1,640 (539 ) 1,640 (539 ) Small business administration pooled securities 4 34,553 (223 ) 9,647 (95 ) 44,200 (318 ) Equity securities 28 3,290 (39 ) 7,619 (403 ) 10,909 (442 ) Total temporarily impaired securities 163 $ 475,739 $ (3,465 ) $ 193,298 $ (6,919 ) $ 669,037 $ (10,384 ) December 31, 2016 Less than 12 months 12 months or longer Total Description of securities # of Fair Value Unrealized Fair Unrealized Fair Value Unrealized (Dollars in thousands) Agency mortgage-backed securities 57 $ 137,949 $ (1,594 ) $ — $ — $ 137,949 $ (1,594 ) Agency collateralized mortgage obligations 32 243,051 (3,140 ) 47,403 (1,989 ) 290,454 (5,129 ) Single issuer trust preferred securities issued by banks and insurers 1 — — 1,036 (3 ) 1,036 (3 ) Pooled trust preferred securities issued by banks and insurers 1 — — 1,583 (616 ) 1,583 (616 ) Small business administration pooled securities 5 59,846 (699 ) — — 59,846 (699 ) Equity securities 25 3,625 (77 ) 6,334 (476 ) 9,959 (553 ) Total temporarily impaired securities 121 $ 444,471 $ (5,510 ) $ 56,356 $ (3,084 ) $ 500,827 $ (8,594 ) The Company does not intend to sell these investments and has determined based upon available evidence that it is more likely than not that the Company will not be required to sell the security before the recovery of its amortized cost basis. As a result, the Company does not consider these investments to be OTTI. The Company made this determination by reviewing various qualitative and quantitative factors regarding each investment category, such as current market conditions, extent and nature of changes in fair value, issuer rating changes and trends, volatility of earnings, and current analysts’ evaluations. As a result of the Company’s review of these qualitative and quantitative factors, the causes of the impairments listed in the table above by category are as follows at December 31, 2017 : • U.S. Government Agency Securities, Agency Mortgage-Backed Securities, Agency Collateralized Mortgage Obligations and Small Business Administration Pooled Securities: These portfolios have contractual terms that generally do not permit the issuer to settle the securities at a price less than the current par value of the investment. The decline in market value of these securities is attributable to changes in interest rates and not credit quality. Additionally, these securities are implicitly guaranteed by the U.S. Government or one of its agencies. • Pooled Trust Preferred Securities: This portfolio consists of one below investment grade security which is performing. The unrealized loss on this security is attributable to the illiquid nature of the trust preferred market in the current economic and regulatory environment. Management evaluates collateral credit and instrument structure, including current and expected deferral and default rates and timing. In addition, discount rates are determined by evaluating comparable spreads observed currently in the market for similar instruments. • Equity Securities : This portfolio consists of mutual funds and other equity investments. During some periods, the mutual funds in the Company’s investment portfolio may have unrealized losses resulting from market fluctuations as well as the risk premium associated with that particular asset class. For example, emerging market equities tend to trade at a higher risk premium than U.S. government bonds and thus, will fluctuate to a greater degree on both the upside and the downside. In the context of a well-diversified portfolio, however, the correlation amongst the various asset classes represented by the funds serves to minimize downside risk. The Company evaluates each mutual fund in the portfolio regularly and measures performance on both an absolute and relative basis. A reasonable recovery period for positions with an unrealized loss is based on management’s assessment of general economic data, trends within a particular asset class, valuations, earnings forecasts and bond durations. The Company has the ability and intent to hold these equity securities until a recovery of fair value. There was no OTTI recorded for the years ended December 31, 2017 , 2016 or 2015 . Additionally, there was no cumulative credit related component of OTTI as of December 31, 2017 , 2016 and 2015 , as securities with $10.0 million of cumulative credit related OTTI were sold during 2015. |
LOANS, ALLOWANCE FOR LOAN LOSSE
LOANS, ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY | 12 Months Ended |
Dec. 31, 2017 | |
Loans, Allowance for Loan Losses and Credit Quality [Abstract] | |
LOANS, ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY | LOANS, ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY Allowance for Loan Losses The following table summarizes changes in the allowance for loan losses by loan category and bifurcates the amount of allowance allocated to each loan category based on collective impairment analysis and loans evaluated individually for impairment: December 31, 2017 Commercial Commercial Commercial Small Residential Home Other Consumer Total (Dollars in thousands) Allowance for loan losses Beginning balance $ 16,921 $ 30,369 $ 4,522 $ 1,502 $ 2,621 $ 5,238 $ 393 $ 61,566 Charge-offs (3,891 ) (39 ) — (302 ) (207 ) (276 ) (1,494 ) (6,209 ) Recoveries 615 385 — 114 31 198 993 2,336 Provision (benefit) (389 ) 738 1,176 263 377 230 555 2,950 Ending balance $ 13,256 $ 31,453 $ 5,698 $ 1,577 $ 2,822 $ 5,390 $ 447 $ 60,643 Ending balance: collectively evaluated for impairment $ 13,246 $ 31,411 $ 5,698 $ 1,576 $ 1,815 $ 5,125 $ 430 $ 59,301 Ending balance: individually evaluated for impairment $ 10 $ 42 $ — $ 1 $ 1,007 $ 265 $ 17 $ 1,342 Financing receivables ending balance: Collectively evaluated for impairment $ 853,885 $ 3,093,945 $ 401,797 $ 131,667 $ 733,809 $ 1,045,053 $ 9,573 $ 6,269,729 Individually evaluated for impairment 34,643 16,638 — 703 13,684 6,826 307 72,801 Purchased credit impaired loans — 5,978 — — 6,836 209 — 13,023 Total loans by group $ 888,528 $ 3,116,561 $ 401,797 $ 132,370 $ 754,329 $ 1,052,088 $ 9,880 $ 6,355,553 (1) December 31, 2016 Commercial Commercial Commercial Small Residential Home Other Consumer Total (Dollars in thousands) Allowance for loan losses Beginning balance $ 13,802 $ 27,327 $ 5,366 $ 1,264 $ 2,590 $ 4,889 $ 587 $ 55,825 Charge-offs (593 ) (414 ) — (228 ) (28 ) (602 ) (1,607 ) (3,472 ) Recoveries 859 564 — 195 299 141 1,080 3,138 Provision (benefit) 2,853 2,892 (844 ) 271 (240 ) 810 333 6,075 Ending balance $ 16,921 $ 30,369 $ 4,522 $ 1,502 $ 2,621 $ 5,238 $ 393 $ 61,566 Ending balance: collectively evaluated for impairment $ 13,260 $ 30,173 $ 4,522 $ 1,494 $ 1,535 $ 4,996 $ 372 $ 56,352 Ending balance: individually evaluated for impairment $ 3,661 $ 196 $ — $ 8 $ 1,086 $ 242 $ 21 $ 5,214 Financing receivables ending balance: Collectively evaluated for impairment $ 862,875 $ 2,983,642 $ 320,391 $ 121,855 $ 622,392 $ 982,095 $ 10,666 $ 5,903,916 Individually evaluated for impairment 39,178 16,813 — 871 14,175 5,863 397 77,297 Purchased credit impaired loans — 10,343 — — 7,859 189 1 18,392 Total loans by group $ 902,053 $ 3,010,798 $ 320,391 $ 122,726 $ 644,426 $ 988,147 $ 11,064 $ 5,999,605 (1) December 31, 2015 Commercial Commercial Commercial Small Residential Other Consumer Total (Dollars in thousands) Allowance for loan losses Beginning balance $ 15,573 $ 25,873 $ 3,945 $ 1,171 $ 2,834 $ 4,956 $ 748 $ 55,100 Charge-offs (2,010 ) (330 ) — (267 ) (285 ) (710 ) (1,316 ) (4,918 ) Recoveries 1,593 1,073 — 264 133 356 724 4,143 Provision (benefit) (1,354 ) 711 1,421 96 (92 ) 287 431 1,500 Ending balance $ 13,802 $ 27,327 $ 5,366 $ 1,264 $ 2,590 $ 4,889 $ 587 $ 55,825 Ending balance: collectively evaluated for impairment $ 13,619 $ 27,123 $ 5,366 $ 1,260 $ 1,312 $ 4,651 $ 564 $ 53,895 Ending balance: individually evaluated for impairment $ 183 $ 204 $ — $ 4 $ 1,278 $ 238 $ 23 $ 1,930 Financing receivables ending balance: Collectively evaluated for impairment $ 838,129 $ 2,619,294 $ 373,064 $ 95,225 $ 614,014 $ 921,563 $ 14,427 $ 5,475,716 Individually evaluated for impairment 5,147 22,986 304 1,021 15,405 5,989 558 51,410 Purchase credit impaired loans — 11,154 — — 9,187 251 3 20,595 Total loans by group $ 843,276 $ 2,653,434 $ 373,368 $ 96,246 $ 638,606 $ 927,803 $ 14,988 $ 5,547,721 (1) (1) The amount of net deferred costs on originated loans included in the ending balance was $6.1 million , $5.1 million , and $4.3 million at December 31, 2017 , 2016 , and 2015 , respectively. Net unamortized discounts on acquired loans not deemed to be PCI included in the ending balance was $9.4 million , $8.6 million , and $6.6 million at December 31, 2017 , 2016 , and 2015 , respectively. For the purpose of estimating the allowance for loan losses, management segregates the loan portfolio into the portfolio segments detailed in the above tables. Each of these loan categories possesses unique risk characteristics that are considered when determining the appropriate level of allowance for each segment. Some of the risk characteristics unique to each loan category include: Commercial Portfolio • Commercial and Industrial : Loans in this category 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, or real estate, if applicable. Repayment sources consist of primarily, operating cash flow, and secondarily, liquidation of assets. • Commercial Real Estate : Loans in this category consist of mortgage loans to finance investment in real property such as multi-family residential, commercial/retail, office, industrial, hotels, educational and healthcare facilities and other specific use properties. Loans are typically written with amortizing payment structures. Collateral values are determined based upon third party appraisals and evaluations. Loan to value ratios at origination are governed by established policy and regulatory guidelines. Repayment sources consist of, primarily, cash flow from operating leases and rents and, secondarily, liquidation of assets. • Commercial Construction : Loans in this category consist of short-term construction loans, revolving and nonrevolving credit lines and construction/permanent loans to finance the acquisition, development and construction or rehabilitation of real property. Project types include residential 1-4 family, condominium and multi-family homes, commercial/retail, office, industrial, hotels, educational and healthcare facilities and other specific use properties. Loans may be written with nonamortizing or hybrid payment structures depending upon the type of project. Collateral values are determined based upon third party appraisals and evaluations. Loan to value ratios at origination are governed by established policy and regulatory guidelines. Repayment sources vary depending upon the type of project and may consist of sale or lease of units, operating cash flows or liquidation of other assets. • Small Business: Loans in this category consist of revolving, term loan and mortgage obligations extended to sole proprietors and small businesses for purposes 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, or real estate if applicable. Repayment sources consist primarily of operating cash flows and, secondarily, liquidation of assets. For the commercial portfolio it is the Company’s policy to obtain personal guarantees for payment from individuals holding material ownership interests of the borrowing entities. Consumer Portfolio • Residential Real Estate : Residential mortgage loans held in the Company’s portfolio are made to borrowers who demonstrate the ability to make scheduled payments with full consideration to underwriting factors such as current and expected income, employment status, current assets, other financial resources, credit history and the value of the collateral. Collateral consists of mortgage liens on 1-4 family residential properties. Residential mortgage loans also include loans to construct owner-occupied 1-4 family residential properties. • Home Equity : Home equity loans and credit lines are made to qualified individuals and are primarily secured by senior or junior mortgage liens on owner-occupied 1-4 family homes, condominiums or vacation homes. Each home equity loan has a fixed rate and is billed in equal payments comprised of principal and interest. Each home equity line of credit has a variable rate and is billed in 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 then outstanding principal balance plus all accrued interest over a predetermined repayment period, as set forth in the note. Additionally, the Company has the option of renewing each line of credit for additional draw periods. Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan to value ratios within established policy guidelines. • Other Consumer: Other consumer loan products include personal lines of credit and amortizing loans made to qualified individuals for various purposes such as education, debt consolidation, personal expenses or overdraft protection. Borrower qualifications include favorable credit history combined with supportive income and collateral requirements within established policy guidelines. These loans may be secured or unsecured. Credit Quality The Company continually monitors the asset quality of the loan portfolio using all available information. Based on this information, loans demonstrating certain payment issues or other weaknesses may be categorized as adversely risk-rated, delinquent, impaired, nonperforming and/or put on nonaccrual status. Additionally, in the course of resolving such loans, the Company may choose to restructure the contractual terms of certain loans to match the borrower’s ability to repay the loan based on their current financial condition. If a restructured loan meets certain criteria, it may be categorized as a troubled debt restructuring (“TDR”). The Company reviews numerous credit quality indicators when assessing the risk in its loan portfolio. For the commercial portfolio, the Company utilizes a 10-point credit risk-rating system, which assigns a risk-grade to each loan obligation based on a number of quantitative and qualitative factors associated with a commercial or small business loan transaction. Factors considered include industry and market conditions, position within the industry, earnings trends, operating cash flow, asset/liability values, debt capacity, guarantor strength, management and controls, financial reporting, collateral, and other considerations. The risk-ratings categories are defined as follows: • 1- 6 Rating — Pass: Risk-rating grades “1” through “6” comprise those loans ranging from ‘Substantially Risk Free’ which indicates borrowers are of unquestioned credit standing and the pinnacle of credit quality, well established companies with a very strong financial condition, and loans fully secured by cash collateral, through ‘Acceptable Risk’, which indicates borrowers may exhibit declining earnings, strained cash flow, increasing or above average leverage and/or weakening market fundamentals that indicate below average asset quality, margins and market share. Collateral coverage is protective. • 7 Rating — Potential Weakness: Borrowers exhibit potential credit weaknesses or downward trends deserving management’s close attention. If not checked or corrected, these trends will weaken the Company’s asset and position. While potentially weak, currently these borrowers are marginally acceptable; no loss of principal or interest is envisioned. • 8 Rating — Definite Weakness Loss Unlikely: Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt. Loan may be inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Normal repayment from the borrower is in jeopardy, although no loss of principal is envisioned. However, there is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected. Collateral coverage may be inadequate to cover the principal obligation. • 9 Rating — Partial Loss Probable: Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt with the added provision that the weaknesses make collection of the debt in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Serious problems exist to the point where partial loss of principal is likely. • 10 Rating — Definite Loss: Borrowers deemed incapable of repayment. Loans to such borrowers are considered uncollectible and of such little value that continuation as active assets of the Company is not warranted. The credit quality of the commercial loan portfolio is actively monitored and any changes in credit quality are reflected in risk-rating changes. Risk-ratings are assigned or reviewed for all new loans, when advancing significant additions to existing relationships (over $50,000 ), at least quarterly for all actively managed loans, and any time a significant event occurs, including at renewal of the loan. The Company utilizes a comprehensive strategy for monitoring commercial credit quality. Actively managed commercial borrowers are required to provide updated financial information at least annually which is carefully evaluated for any changes in credit quality. Larger loan relationships are subject to a full annual credit review by an experienced credit analysis group, while continuous portfolio monitoring techniques are employed to evaluate changes in credit quality for smaller loan relationships. Additionally, the Company retains an independent loan review firm to evaluate the credit quality of the commercial loan portfolio. The independent loan review process achieves significant penetration into the commercial loan portfolio and reports the results of these reviews to the Audit Committee of the Board of Directors on a quarterly basis. The following table details the amount of outstanding principal balances relative to each of the risk-rating categories for the Company’s commercial portfolio: December 31, 2017 Category Risk Commercial and Commercial Real Commercial Small Business Total (Dollars in thousands) Pass 1 - 6 $ 806,331 $ 3,007,672 $ 400,964 $ 130,265 $ 4,345,232 Potential weakness 7 16,563 69,788 — 1,471 87,822 Definite weakness - loss unlikely 8 59,415 38,637 833 631 99,516 Partial loss probable 9 6,219 464 — 3 6,686 Definite loss 10 — — — — — Total $ 888,528 $ 3,116,561 $ 401,797 $ 132,370 $ 4,539,256 December 31, 2016 Category Risk Commercial and Commercial Real Commercial Small Business Total (Dollars in thousands) Pass 1 - 6 $ 783,825 $ 2,876,570 $ 317,099 $ 120,304 $ 4,097,798 Potential weakness 7 46,176 84,641 1,363 1,859 134,039 Definite weakness - loss unlikely 8 71,991 47,164 1,929 556 121,640 Partial loss probable 9 61 2,423 — 7 2,491 Definite loss 10 — — — — — Total $ 902,053 $ 3,010,798 $ 320,391 $ 122,726 $ 4,355,968 For the Company’s consumer portfolio, the quality of the loan is best indicated by the repayment performance of an individual borrower. However, the Company does supplement performance data with current Fair Isaac Corporation (“FICO”) scores and Loan to Value (“LTV”) estimates. Current FICO data is purchased and appended to all consumer loans on a regular basis. In addition, automated valuation services and broker opinions of value are used to supplement original value data for the residential and home equity portfolios, periodically. The following table shows the weighted average FICO scores and the weighted average combined LTV ratios as of the periods indicated below: December 31 2017 2016 Residential portfolio FICO score (re-scored)(1) 745 743 LTV (re-valued)(2) 59.2 % 63.2 % Home equity portfolio FICO score (re-scored)(1) 766 767 LTV (re-valued)(2)(3) 50.1 % 55.9 % (1) The average FICO scores at December 31, 2017 are based upon rescores available from August 2017 and origination score data for loans booked between September and December 2017. The average FICO scores at December 31, 2016 are based upon rescores available from November 2016 and origination score data for loans booked in December 2016. (2) The combined LTV ratios for December 31, 2017 are based upon updated automated valuations as of August 2017, when available, and/or the most current valuation data available as of December 31, 2017. The combined LTV ratios for December 31, 2016 are based upon updated automated valuations as of March 2015, when available, and /or the most current valuation data for loans as of December 31, 2016. The updated automated valuations provides new information on loans that may be available since the previous valuation was obtained. If no new information is available, the valuation will default to the previously obtained data or most recent appraisal. (3) For home equity loans and lines in a subordinate lien, the LTV data represents a combined LTV, taking into account the senior lien data for loans and lines. Asset Quality The Bank’s philosophy toward managing its loan portfolios is predicated upon careful monitoring, which stresses early detection and response to delinquent and default situations. Delinquent loans are managed by a team of seasoned collection specialists and the Company seeks to make arrangements to resolve any delinquent or default situation over the shortest possible time frame. As a general rule, loans more than 90 days past due with respect to principal or interest are classified as nonaccrual loans. The Company also may use discretion regarding the accrual status of other loans over 90 days delinquent if the loan is well secured and in process of collection. The following table shows the carrying value of nonaccrual loans at the dates indicated: December 31 2017 2016 (Dollars in thousands) Commercial and industrial $ 32,055 $ 37,455 Commercial real estate 3,123 6,266 Small business 230 302 Residential real estate 8,129 7,782 Home equity 6,022 5,553 Other consumer 71 47 Total nonaccrual loans (1) $ 49,630 $ 57,405 (1) Included in these amounts were $6.1 million and $5.2 million of nonaccruing TDRs at December 31, 2017 and 2016 , respectively. The following table shows information regarding foreclosed residential real estate property at the date indicated: December 31, 2017 December 31, 2016 (Dollars in thousands) Foreclosed residential real estate property held by the creditor $ 612 $ 3,775 Recorded investment in mortgage loans collateralized by residential real estate property that are in the process of foreclosure $ 2,971 $ 1,715 The following table shows the age analysis of past due financing receivables as of the dates indicated: December 31, 2017 30-59 days 60-89 days 90 days or more Total Past Due Current Total Recorded Number Principal Number Principal Number Principal Number Principal (Dollars in thousands) Commercial and industrial 2 $ 195 2 $ 370 14 $ 32,007 18 $ 32,572 $ 855,956 $ 888,528 $ — Commercial real estate 7 3,060 — — 9 1,793 16 4,853 3,111,708 3,116,561 — Commercial construction — — — — — — — — 401,797 401,797 — Small business 17 339 11 144 10 57 38 540 131,830 132,370 — Residential real estate 6 870 13 2,385 22 3,471 41 6,726 747,603 754,329 — Home equity 22 1,310 6 451 20 2,025 48 3,786 1,048,302 1,052,088 — Other consumer (1) 265 197 16 27 17 45 298 269 9,611 9,880 8 Total 319 $ 5,971 48 $ 3,377 92 $ 39,398 459 $ 48,746 $ 6,306,807 $ 6,355,553 $ 8 December 31, 2016 30-59 days 60-89 days 90 days or more Total Past Due Current Total Recorded Number Principal Number Principal Number Principal Number Principal (Dollars in thousands) Commercial and industrial 8 $ 100 32 $ 253 6 $ 2,480 46 $ 2,833 $ 899,220 $ 902,053 $ — Commercial real estate 5 1,518 8 1,957 8 3,105 21 6,580 3,004,218 3,010,798 — Commercial construction — — — — — — — — 320,391 320,391 — Small business 9 323 — — 19 140 28 463 122,263 122,726 — Residential real estate 11 1,277 9 1,950 27 3,507 47 6,734 637,692 644,426 — Home equity 19 1,117 11 767 16 1,209 46 3,093 985,054 988,147 — Other consumer (1) 249 184 12 17 15 7 276 208 10,856 11,064 2 Total 301 $ 4,519 72 $ 4,944 91 $ 10,448 464 $ 19,911 $ 5,979,694 $ 5,999,605 $ 2 (1) Other consumer portfolio is inclusive of deposit account overdrafts recorded as loan balances. Troubled Debt Restructurings In the course of resolving nonperforming loans, the Bank may choose to restructure the contractual terms of certain loans. The Bank attempts to work out an alternative payment schedule with the borrower in order to avoid foreclosure actions. Any loans that are modified are reviewed by the Bank to identify if a TDR has occurred, which is when, for economic or legal reasons related to a borrower’s financial difficulties, the Bank grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status and the restructuring of the loan may include the transfer of assets from the borrower to satisfy the debt, a modification of loan terms, or a combination of the two. The following table shows the Company’s total TDRs and other pertinent information as of the dates indicated: December 31 2017 2016 (Dollars in thousands) TDRs on accrual status $ 25,852 $ 27,093 TDRs on nonaccrual status 6,067 5,199 Total TDRs $ 31,919 $ 32,292 Amount of specific reserves included in the allowance for loan loss associated with TDRs: $ 1,342 $ 1,417 Additional commitments to lend to a borrower who has been a party to a TDR: $ 487 $ 1,378 The Company’s policy is to have any restructured loan which is on nonaccrual status prior to being modified remain on nonaccrual status for six months subsequent to being modified before management considers its return to accrual status. If the restructured loan is on accrual status prior to being modified, it is reviewed to determine if the modified loan should remain on accrual status. Additionally, loans classified as TDRs are adjusted to reflect the changes in value of the recorded investment in the loan, if any, resulting from the granting of a concession. For all residential loan modifications, the borrower must perform during a 90 day trial period before the modification is finalized. The following table shows the modifications which occurred during the periods indicated and the change in the recorded investment subsequent to the modifications occurring: Years Ended December 31 2017 Number Pre-Modification Post-Modification (Dollars in thousands) Troubled debt restructurings Commercial and industrial 12 $ 1,787 $ 1,787 Commercial real estate 6 2,705 2,705 Small business 9 369 369 Residential real estate 10 1,284 1,326 Home equity 17 1,985 1,988 Total 54 $ 8,130 $ 8,175 2016 Troubled debt restructurings Commercial and industrial 10 $ 1,623 $ 1,623 Commercial real estate 10 2,959 2,959 Small business 3 188 188 Residential real estate 8 1,808 1,850 Home equity 13 932 932 Other consumer 6 153 153 Total 50 $ 7,663 $ 7,705 2015 Troubled debt restructurings Commercial and industrial 13 $ 1,314 $ 1,314 Commercial real estate 6 2,941 2,941 Small business 9 293 293 Residential real estate 8 843 870 Home equity 8 694 694 Total 44 $ 6,085 $ 6,112 (1) The post-modification balances represent the legal principal balance of the loan on the date of modification. These amounts may show an increase when modifications include a capitalization of interest. The following table shows the Company’s post-modification balance of TDRs listed by type of modification as of the periods indicated: Years Ended December 31 2017 2016 2015 (Dollars in thousands) Extended maturity $ 5,881 $ 5,044 $ 2,936 Adjusted interest rate — 92 — Combination rate and maturity 568 1,035 2,199 Court ordered concession 1,726 1,534 977 Total $ 8,175 $ 7,705 $ 6,112 The Company considers a loan to have defaulted when it reaches 90 days past due. The following table shows loans that were modified during the prior twelve months and subsequently defaulted during the periods indicated: Years Ended December 31 2017 2016 2015 Number Recorded Number Recorded Number Recorded (Dollars in thousands) Troubled debt restructurings that subsequently defaulted Commercial & industrial 1 $ 122 — $ — 3 $ 339 Commercial real estate — — 1 249 1 502 Residential real estate — — — — 2 326 Home equity — — — — 1 100 Total 1 $ 122 1 $ 249 7 $ 1,267 All TDR loans are considered impaired and therefore are subject to a specific review for credit losses. The impairment analysis appropriately discounts the present value of the anticipated cash flows by the loan’s contractual rate of interest in effect prior to the loan’s modification. The amount of impairment, if any, is recorded as a specific loss allocation to each individual loan in the allowance for loan losses. Commercial loans (commercial and industrial, commercial construction, commercial real estate and small business loans), residential loans, and home equity loans that have been classified as TDRs and which subsequently default are reviewed to determine if the loan should be deemed collateral dependent. In such an instance, any shortfall between the value of the collateral and the carrying value of the loan is determined by measuring the recorded investment in the loan against the fair value of the collateral less costs to sell. The Company charges off the amount of any confirmed loan loss in the period when the loans, or portion of loans, are deemed uncollectible. Smaller balance consumer TDR loans are reviewed for performance to determine when a charge-off is appropriate. Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The table below sets forth information regarding the Company’s impaired loans. The information for average recorded investment and interest income recognized is reflective of the full period being presented and does not take into account the date at which a loan was deemed to be impaired. See information below as of the dates indicated: As of and For the Years Ended December 31 2017 Recorded Unpaid Related Average Interest Income Recognized (Dollars in thousands) With no related allowance recorded Commercial and industrial $ 34,267 $ 38,329 $ — $ 36,631 $ 446 Commercial real estate 13,245 14,374 — 13,683 559 Small business 556 619 — 569 21 Residential real estate 4,264 4,397 — 4,332 218 Home equity 4,950 5,056 — 5,063 198 Other consumer 91 92 — 102 7 Subtotal 57,373 62,867 — 60,380 1,449 With an allowance recorded Commercial and industrial 376 376 10 391 19 Commercial real estate 3,393 3,399 42 3,447 198 Small business 147 153 1 238 14 Residential real estate 9,420 10,154 1,007 9,575 284 Home equity 1,876 2,110 265 1,916 55 Other consumer 216 217 17 233 7 Subtotal 15,428 16,409 1,342 15,800 577 Total $ 72,801 $ 79,276 $ 1,342 $ 76,180 $ 2,026 2016 Recorded Unpaid Related Average Interest (Dollars in thousands) With no related allowance recorded Commercial and industrial $ 28,776 $ 29,772 $ — $ 26,472 $ 927 Commercial real estate 11,628 12,891 — 12,744 437 Small business 494 569 — 534 20 Residential real estate 4,216 4,427 — 4,302 185 Home equity 4,485 4,572 — 4,602 184 Other consumer 146 146 — 160 11 Subtotal 49,745 52,377 — 48,814 1,764 With an allowance recorded Commercial and industrial 10,402 10,440 3,661 10,760 325 Commercial real estate 5,185 5,533 196 5,491 200 Small business 377 392 8 408 21 Residential real estate 9,959 10,530 1,086 10,065 332 Home equity 1,378 1,547 242 1,403 50 Other consumer 251 252 21 268 8 Subtotal 27,552 28,694 5,214 28,395 936 Total $ 77,297 $ 81,071 $ 5,214 $ 77,209 $ 2,700 2015 Recorded Unpaid Related Average Interest (Dollars in thousands) With no related allowance recorded Commercial and industrial $ 2,613 $ 3,002 $ — $ 3,024 $ 71 Commercial real estate 12,008 13,128 — 11,676 375 Commercial construction 304 305 — 308 — Small business 527 618 — 584 22 Residential real estate 3,874 4,033 — 3,958 157 Home equity 4,893 5,005 — 5,023 195 Other consumer 184 185 — 201 15 Subtotal 24,403 26,276 — 24,774 835 With an allowance recorded Commercial and industrial 2,534 2,648 183 2,848 48 Commercial real estate 10,978 11,047 204 10,789 592 Small business 494 523 4 535 30 Residential real estate 11,531 12,652 1,278 11,669 460 Home equity 1,096 1,287 238 655 14 Other consumer 374 389 23 408 14 Subtotal 27,007 28,546 1,930 26,904 1,158 Total $ 51,410 $ 54,822 $ 1,930 $ 51,678 $ 1,993 Purchased Credit Impaired Loans Certain loans acquired by the Company may have shown evidence of deterioration of credit quality since origination and it was deemed unlikely that the Company would be able to collect all contractually required payments. As such, these loans were deemed to be PCI loans and the carrying value and prospective income recognition are predicated upon future cash flows expected to be collected. The following table displays certain information pertaining to PCI loans at the dates indicated: December 31 2017 2016 (Dollars in thousands) Outstanding balance $ 14,485 $ 20,477 Carrying amount $ 13,023 $ 18,392 The following table summarizes activity in the accretable yield for the PCI loan portfolio: 2017 2016 (Dollars in thousands) Beginning balance $ 2,370 $ 2,827 Accretion (1,475 ) (1,540 ) Other change in expected cash flows (1) 748 953 Reclassification from nonaccretable difference for loans which have paid off (2) 148 130 Ending balance $ 1,791 $ 2,370 (1) Represents changes in cash flows expected to be collected resulting in increased interest income as a prospective yield adjustment over the remaining life of the loan(s). (2) Results in increased income during the period when a loan pays off at amount greater than originally expected. |
BANK PREMISES AND EQUIPMENT
BANK PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
BANK PREMISES AND EQUIPMENT | Bank premises and equipment at December 31, were as follows: 2017 2016 Estimated (Dollars in thousands) (In years) Cost Land $ 23,719 $ 20,585 n/a Bank premises 49,159 43,553 5-40 Leasehold improvements 25,184 24,387 1-27 Furniture and equipment 62,521 58,237 1-12 Leased equipment 10,644 — 7 Total cost 171,227 146,762 Accumulated depreciation (76,505 ) (68,282 ) Net bank premises and equipment $ 94,722 $ 78,480 Depreciation expense related to bank premises and equipment was $8.5 million in 2017 , $7.3 million in 2016 , and $7.0 million in 2015 , which is primarily included in occupancy and equipment expenses. Depreciation expense relating to computer software is included within other noninterest expense. During 2017, the Company purchased equipment that was subject to a master lease agreement with a third party lessee. As such, the Company assumed the role of lessor in conjunction with the purchase, which was deemed to be an operating lease for accounting purposes. The Company purchased a total of $10.6 million of equipment subject to the lease agreement in 2017. In addition, the Company recognized rental income of $1.3 million for the year ended December 31, 2017, as well as depreciation expense of $939,000 , which is included in the totals above. |
GOODWILL AND IDENTIFIABLE INTAN
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The following table sets forth the carrying value of goodwill and other intangible assets, net of accumulated amortization, at December 31: 2017 2016 (Dollars in thousands) Balances not subject to amortization Goodwill $ 231,806 $ 221,526 Balances subject to amortization Core deposit intangibles 8,636 8,527 Other intangible assets 705 1,321 Total other intangible assets 9,341 9,848 Total goodwill and other intangible assets $ 241,147 $ 231,374 The changes in the carrying value of goodwill for the periods indicated were as follows: 2017 2016 (Dollars in thousands) Balance at beginning of year $ 221,526 $ 201,083 Acquisitions 10,280 20,443 Balance at end of year $ 231,806 $ 221,526 The gross carrying amount and accumulated amortization of other intangible assets were as follows at the dates indicated: December 31 2017 2016 Gross Accumulated Net Gross Accumulated Net (Dollars in thousands) Core deposit intangibles $ 26,736 $ (18,100 ) $ 8,636 $ 23,917 $ (15,390 ) $ 8,527 Other intangible assets 3,165 (2,460 ) 705 3,020 (1,699 ) 1,321 Total $ 29,901 $ (20,560 ) $ 9,341 $ 26,937 $ (17,089 ) $ 9,848 Amortization of intangible assets was $3.5 million for 2017 and $2.8 million for both 2016 and 2015 . The following table sets forth the estimated annual amortization expense of intangible assets for each of the next five years: Year Amount (Dollars in thousands) 2018 $ 2,394 2019 $ 1,687 2020 $ 1,414 2021 $ 1,245 2022 $ 948 The original weighted average amortization period for intangible assets is 9.8 years . |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
DEPOSITS | DEPOSITS The following is a summary of the scheduled maturities of time deposits as of December 31: 2017 2016 (Dollars in thousands) 1 year or less $ 393,452 61.1 % $ 430,834 66.4 % Over 1 year to 2 years 119,341 18.5 % 82,627 12.7 % Over 2 years to 3 years 57,619 8.9 % 44,190 6.8 % Over 3 years to 4 years 41,183 6.4 % 49,446 7.6 % Over 4 years to 5 years 32,706 5.1 % 42,055 6.5 % Total $ 644,301 100.0 % $ 649,152 100.0 % The amount of overdraft deposits that were reclassified to the loan category were $2.3 million at both December 31, 2017 and 2016 . The Company has pledged assets as collateral covering certain deposits in the amount of $349.2 million and $299.7 million at December 31, 2017 and 2016 , respectively. The Bank's deposit accounts are insured to the maximum extent permitted by law by the Deposit Insurance Fund which is administered by the FDIC. The FDIC offers insurance coverage on deposits up to the federally insured limit of $250,000. The amount of time deposit accounts equal to or greater than $250,000 as of December 31, 2017 and 2016 is $80.0 million and $75.3 million , respectively. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
BORROWINGS | BORROWINGS Federal Home Loan Bank Borrowings Advances payable to the Federal Home Loan Bank as of December 31 are summarized as follows: 2017 2016 Weighted Weighted Average Average Total Contractual Total Contractual Outstanding Rate Outstanding Rate (Dollars in thousands) Stated Maturity 2017 $ — — % $ 50,000 2.43 % 2018 52,475 1.58 % — — % Subtotal 52,475 1.58 % 50,000 2.43 % Amortizing advances 789 819 Total Federal Home Loan Bank Advances $ 53,264 $ 50,819 To manage the interest rate risk of these advances, the Company may enter into interest rate swap agreements which effectively fix the rate of the borrowing. Inclusive of the impact of these swap arrangements, the weighted average rate of the FHLB borrowings was 2.47% and 3.42% at December 31, 2017 and 2016 , respectively. During 2016, exclusive of the impact from the NEB acquisition, the Company repaid $49.0 million of FHLB borrowings prior to the maturity date of the borrowings. This prepayment resulted in a loss on extinguishment of debt of $437,000 . The Company also repaid $13.0 million of FHLB borrowings in 2015, resulting in a loss on extinguishment of debt of $122,000 . There were no prepayments made during 2017. The Company’s FHLB advances are collateralized by a blanket pledge agreement on the Bank’s FHLB stock, certain qualified investment securities, deposits at the FHLB, and by residential mortgages, and certain commercial real estate loans held in the Bank’s portfolio. The carrying value of the loans pledged as collateral for these borrowings totaled $1.5 billion and $1.4 billion at December 31, 2017 and 2016 , respectively. The Bank’s unused remaining available borrowing capacity at the FHLB was approximately $954.8 million and $793.1 million at December 31, 2017 and 2016 , respectively, inclusive of a $5.0 million line of credit. At December 31, 2017 and 2016 , the Company had sufficient collateral at the FHLB to support its obligations and was in compliance with the FHLB's collateral pledging program. Short-Term Debt The Company’s short-term borrowings consist of customer repurchase agreements, and amounted to $162.7 million and $176.9 million at December 31, 2017 and 2016 , respectively. The interest expense on short-term borrowings was $257,000 , $208,000 , and $210,000 for the years ended December 31, 2017 , 2016 , and 2015 , respectively. Customer Repurchase Agreements . The Company can raise additional liquidity by entering into repurchase agreements at its discretion. These repurchases are accounted for as a secured borrowing transaction for accounting purposes. Payments on such borrowings are interest only until the scheduled repurchase date. In a repurchase agreement the Company is subject to the risk that the purchaser may default at maturity and not return the securities underlying the agreements. In order to minimize this potential risk, the Company enters into repurchase agreements that 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 the remaining contractual maturity of the Company’s repurchase agreements allocated by source of collateral at the dates indicated: December 31 2017 2016 (Dollars in thousands) Sources of Collateral U.S. government agency securities $ 16,867 $ 20,233 Agency mortgage-backed securities 51,273 79,079 Agency collateralized mortgage obligations 94,539 77,601 Total customer repurchase agreements (1) $ 162,679 $ 176,913 (1) All customer repurchase agreements have an overnight and continuous maturity date. For further information regarding the Company's repurchase agreements see Note 12 , Balance Sheet Offsetting . Long-Term Debt The following table summarizes long-term debt, net of debt issuances costs, as of the periods indicated: December 31 2017 2016 (Dollars in thousands) Junior subordinated debentures Capital Trust V $ 51,503 $ 51,500 Slades Ferry Trust I 10,229 10,224 Central Trust I 5,258 5,302 Central Trust II 6,083 6,081 Subordinated debentures 34,682 34,635 Total long-term debt $ 107,755 $ 107,742 The interest expense on long-term debt was $4.0 million , $5.8 million , and $6.6 million for the years ended December 31, 2017 , 2016 , and 2015 , respectively. Junior Subordinated Debentures : The junior subordinated debentures are issued to various trust subsidiaries of the Company. These trusts are considered to be variable interest entities for which the Company is not the primary beneficiary, and therefore the accounts of the trusts are not included in the Company’s consolidated financial statements. These trusts were formed for the purpose of issuing trust preferred securities, which were then sold in a private placement offering. The proceeds from the sale of the securities and the issuance of common stock by these trusts were invested in these Junior Subordinated Debentures issued by the Company. For regulatory purposes, bank holding companies are allowed to include trust preferred securities in Tier 1 capital up to a certain limit. Provisions in the Dodd-Frank Act generally exclude trust preferred securities from Tier 1 capital, however, holding companies with consolidated assets of less than $15 billion, such as the Company, are able to continue to include these instruments in Tier 1 capital, but no such securities issued in the future will count as Tier 1 capital. Information relating to these trust preferred securities are as follows: Trust Description of Capital Securities Capital Trust V $50.0 million due in 2037, interest at a variable rate of 3 month LIBOR plus 1.48% (3.07% at December 31, 2017),which, effective on January 17, 2017, has been converted to a fixed rate of 2.84% through the use of an interest rate swap. Prior to 2017, this borrowing had been converted to a fixed rate of 6.52%, through the use of an interest rate swap which expired on December 28, 2016. These securities are callable quarterly, until maturity. Slades Ferry Trust I $10.0 million due in 2034, bearing interest at a variable rate of 3 month LIBOR plus 2.79% (4.39% at December 31, 2017). These securities are callable quarterly, until maturity. Central Trust I $5.1 million due in 2034, bearing interest at a variable rate of 3 month LIBOR plus 2.44% (4.03% at December 31, 2017). These securities are callable quarterly, until maturity. Central Trust II $5.9 million due in 2037, bearing interest at a variable rate of 3 month LIBOR plus 1.65% (3.24% at December 31, 2017), beginning in March of 2017. Previously, the interest was at a fixed rate of 7.015%. These securities are callable quarterly, until maturity. All obligations under these trust preferred securities are unconditionally guaranteed by the Company. Subordinated Debentures : At December 31, 2017 and 2016 there was $35.0 million of outstanding principal amount subordinated debentures at the bank holding company. The subordinated debentures were issued to several investors via private placement on November 17, 2014. The subordinated debt matures on November 15, 2024, however with regulatory approval, the Bank may redeem the subordinated debt without penalty at any scheduled payment date on or after November 15, 2019 with 30 days notice. The interest rate is fixed at 4.75% through November 15, 2019, after which it converts to LIBOR plus 2.98% . The following table sets forth the contractual maturities of long-term debt over the next five years: 2018 2019 2020 2021 2022 Thereafter Total (Dollars in thousands) Junior subordinated debentures Capital trust V $ — $ — $ — $ — $ — $ 51,547 $ 51,547 Slades ferry trust I — — — — — 10,310 10,310 Central trust I — — — — — 5,258 5,258 Central trust II — — — — — 6,083 6,083 Subordinated debentures — — — — — 35,000 35,000 Total $ — $ — $ — $ — $ — $ 108,198 $ 108,198 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | Earnings per share consisted of the following components for the years ended December 31: 2017 2016 2015 (Dollars in thousands, except per share data) Net income $ 87,204 $ 76,648 $ 64,960 Weighted Average Shares Basic shares 27,294,028 26,404,071 25,891,382 Effect of dilutive securities 78,076 51,847 68,566 Diluted shares 27,372,104 26,455,918 25,959,948 Net income per share Basic EPS $ 3.19 $ 2.90 $ 2.51 Effect of dilutive securities — — (0.01 ) Diluted EPS $ 3.19 $ 2.90 $ 2.50 For the year ended December 31, 2017 there were 103 options to purchase common stock and no shares of performance-based restricted stock that were excluded from the calculation of diluted earnings per share because they were anti-dilutive. There were no options to purchase common stock or shares of performance-based restricted stock that were considered anti-dilutive for the years ended December 31, 2016 and 2015 . |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK BASED COMPENSATION | The Company's stock based plans include the Second Amended and Restated 2005 Employee Stock Plan (“2005 Plan”) and the 2010 Nonemployee Director Stock Plan (“2010 Plan”) both of which have been approved by the Company’s Board of Directors and shareholders. The Company may award shares from these plans as either stock options or restricted stock from its pool of authorized but unissued shares. The following table presents the amount of cumulatively granted stock options and restricted stock awards, net of forfeitures, through December 31, 2017 : Authorized Awards Cumulative Granted, Net of Total Authorized Stock Restricted 2005 Plan 1,650,000 537,941 695,546 1,233,487 416,513 2010 Plan 314,600 42,000 93,245 135,245 179,355 The following table presents the pre-tax expense associated with stock option and restricted stock awards and the related tax benefits recognized for the years presented: Years Ended December 31 2017 2016 2015 (Dollars in thousands) Stock based compensation expense Restricted stock awards(1) $ 2,730 $ 2,590 $ 2,296 Directors’ fee expense Stock options 76 72 — Restricted stock awards 527 303 194 Total stock based award expense $ 3,333 $ 2,965 $ 2,490 Related tax benefits recognized in earnings $ 1,362 $ 1,211 $ 1,122 (1) Inclusive of compensation expense associated with time-vested and performance-based restricted stock awards. Expense related to awards issued to directors are recognized as directors’ fees within other noninterest expense. The Company has standard form agreements used for stock option and restricted stock awards. The standard form agreements used for the Chief Executive Officer and all other Executive Officers have previously been disclosed in Securities and Exchange Commission filings and generally provide that: (1) any unvested options or unvested restricted stock vest upon a Change of Control; and, that (2) any stock options which vest pursuant to a Change of Control, which is an event described in Section 280G of the Internal Revenue Code of 1986, will be cashed out at the difference between the acquisition price and the exercise price of the stock option. Stock Options The fair value of each option grant is estimated on the date of the grant using the Black-Scholes option-pricing model with the following assumptions used for grants under the identified plans: • Expected volatility is based on the standard deviation of the historical volatility of the weekly adjusted closing price of the Company’s shares for a period equivalent to the expected life of the option. • Expected life represents the period of time that the option is expected to be outstanding, taking into account the contractual term, historical exercise/forfeiture behavior, and the vesting period, if any. • Expected dividend yield is an annualized rate calculated using the most recent dividend payment at time of grant and the Company’s average trailing twelve-month daily closing stock price. • The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for a period equivalent to the expected life of the option. • Prior to January 1, 2017, the stock based compensation expense recognized in earnings was based on the amount of awards ultimately expected to vest, therefore a forfeiture assumption was estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differed from those estimates. Stock based compensation expense recognized was reduced for annualized estimated forfeitures of 4.5% in both 2016 and 2015 based on historical experience. Effective January 1, 2017, the Company adopted new accounting guidance and elected to no longer estimate forfeitures on stock compensation and instead recognize forfeitures when they occur. The election required a cumulative effect adjustment to retained earnings which did not materially impact the Company's consolidated financial position. The Company made the following awards of nonqualified options to purchase shares of common stock in 2017 and 2016 . There were no such awards made in 2015 . Years Ended December 31 2017 2016 Date of grant 11/7/2017 7/14/2016 2/20/2016 Plan 2010 2010 2010 Options granted 5,000 5,000 5,000 Vesting period (beginning on the grant date) 14 months 18 months 22 months Expiration date 11/7/2027 7/14/2026 2/20/2026 Expected volatility 20.80 % 32.28 % 32.44 % Expected life (years) 5.5 5.5 5.5 Expected dividend yield 1.87 % 2.37 % 2.28 % Risk free interest rate 2.02 % 1.14 % 1.29 % Fair value per option $ 12.43 $ 11.46 $ 10.59 Under all of the Company’s stock based plans, the option exercise price is based upon the average of the high and low trading value of the stock on the date of grant. Stock option awards granted to date under all plans expire through 2027 . The following table presents relevant information relating to the Company’s stock options for the periods indicated: Years Ended December 31 2017 2016 2015 (Dollars in thousands, except per share data) Fair value of stock options vested based on grant date fair value $ 72 $ 37 $ 14 Intrinsic value of stock options exercised $ 1,082 $ 494 $ 3,362 Cash received from stock option exercises $ 918 $ 680 $ 6,105 Tax benefit realized on stock option exercises/repurchase $ 442 $ 204 $ 1,362 Weighted average grant date fair value of options granted (per share) $ 12.43 $ 11.03 $ — A summary of stock option activity of the Company’s Stock Option Grants for the year ended December 31, 2017 is presented in the table below: Outstanding Nonvested Stock Option Weighted Weighted Aggregate Stock Weighted (Dollars in thousands, except per share data) Balance at January 1, 2017 109,650 $ 29.93 6,666 $ 11.03 Granted 5,000 70.28 5,000 12.43 Exercised (30,150 ) 30.43 — — Vested n/a n/a (6,667 ) 10.85 Forfeited — — — — Expired (500 ) 28.88 — — Balance at December 31, 2017 84,000 (2) $ 32.16 3.04 years $ 3,258 4,999 $ 12.11 Options outstanding and expected to vest at December 31, 2017 84,000 (3) $ 32.16 3.04 years $ 3,258 Options exercisable at December 31, 2017 79,001 (4) $ 30.21 2.64 years $ 3,218 Unrecognized compensation cost $ 22 Weighted average remaining recognition period (years) 1.00 (1) The aggregate intrinsic value in the preceding tables represents the total pre-tax intrinsic value, based on the average of the high price and low price at which the Company’s common stock traded on December 31, 2017 of $70.95 , which would have been received by the option holders had they all exercised their options as of that date. (2) Inclusive of 38,000 stock options outstanding to Directors. (3) Inclusive of 38,000 vested stock options and expected to vest to Directors. (4) Inclusive of 33,001 vested stock options outstanding to Directors. Restricted Stock The Company grants both time-vested restricted stock awards as well as performance-based restricted stock awards. During the years ended December 31, 2017 , 2016 , and 2015 the Company has made the following restricted stock award grants: Shares Granted Plan Fair Value (1) Vesting Period Time-vested 2017 2/13/2017 1,200 1,200 2005 $ 62.53 Ratably over 5 years from grant date 2/16/2017 34,150 34,150 2005 $ 63.10 Ratably over 5 years from grant date 3/31/2017 500 500 2005 $ 65.63 Ratably over 5 years from grant date 4/3/2017 1,500 1,500 2005 $ 64.14 Once on November 30, 2017 (2) 5/15/2017 1,000 1,000 2005 $ 64.03 Ratably over 5 years from grant date 5/23/2017 7,000 7,000 2010 $ 61.95 At the end of 5 years from grant date (3) 6/15/2017 950 950 2005 $ 66.18 Ratably over 5 years from grant date 2016 2/11/2016 51,475 2005 $ 41.96 Ratably over 5 years from grant date 3/1/2016 600 2005 $ 44.37 Ratably over 5 years from grant date 5/24/2016 8,700 2010 $ 48.34 At the end of 5 years from grant date (3) 9/19/2016 800 2005 $ 52.92 Ratably over 5 years from grant date 11/7/2016 500 2005 $ 54.28 Ratably over 5 years from grant date 11/14/2016 725 2010 $ 63.43 Once on May 24, 2021 (4) 2015 2/11/2015 31,500 2005 $ 39.42 Ratably over 5 years from grant date 2/12/2015 25,910 2005 $ 40.03 Ratably over 5 years from grant date 3/19/2015 3,800 2005 $ 43.56 Ratably over 5 years from grant date 4/27/2015 625 2005 $ 41.61 At the end of 3 years from grant date 4/27/2015 1,875 2005 $ 41.61 At the end of 5 years from grant date 5/27/2015 8,800 2010 $ 45.02 At the end of 5 years from grant date (3) 7/14/2015 800 2010 $ 47.82 Once on May 27, 2020 (5) 10/13/2015 1,000 2005 $ 46.09 Ratably over 5 years from grant date 10/20/2015 2,000 2005 $ 46.47 Ratably over 5 years from grant date Performance-based 2/16/2017 14,400 2005 $ 63.10 The earlier of: the date on which it is determined if the performance goal has been achieved; or, March 31, 2020. 2/11/2016 20,450 2005 $ 41.96 The earlier of: the date on which it is determined if the performance goal has been achieved; or, March 31, 2019. 2/12/2015 21,780 2005 $ 40.03 The earlier of: the date on which it is determined if the performance goal has been achieved; or, March 31, 2018. (1) The fair value of the restricted stock awards are based upon the average of the high and low prices at which the Company’s common stock traded on the date of grant. The holders of time-vested restricted stock awards participate fully in the rewards of stock ownership of the Company, including voting and dividend rights. The holders of performance-based restricted stock awards do not participate in the rewards of stock ownership of the Company until vested. The holders of all restricted stock awards are not required to pay any consideration to the Company for the awards. (2) This restricted stock grant fully vested upon an employee's termination, on November 30, 2017. (3) These restricted stock grants will vest at the end of a five year period, or earlier if the director ceases to be a director for any reason other than cause, such as, for example, by retirement. (4) These restricted stock grants will vest on May 24, 2021, or earlier if the director ceases to be a director for any reason other than cause, such as, for example, by retirement. (5) These restricted stock grants will vest on May 27, 2020, or earlier if the director ceases to be a director for any reason other than cause, such as, for example, by retirement. The following table presents the fair value of restricted stock awards vesting during the periods presented: Years Ended December 31 2017 2016 2015 (Dollars in thousands) Fair value of restricted stock awards upon vesting $ 5,717 $ 3,019 $ 2,610 A summary of the status of the Company’s Restricted Stock Award Grants for the year ended December 31, 2017 is presented in the table below: Outstanding Restricted Stock Weighted Average (Dollars in thousands, except per share data) Balance at January 1, 2017 264,315 $ 38.88 Granted 60,700 63.07 Vested/released (89,436 ) 36.79 Forfeited (9,614 ) 39.49 Balance at December 31, 2017 225,965 (1) $ 46.18 Unrecognized compensation cost (inclusive of directors’ fees) $ 6,355 Weighted average remaining recognition period (years) 3.00 (1) Inclusive of 38,445 restricted stock awards outstanding to Directors. |
DERIVATIVES AND HEDGING ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING ACTIVITIES | DERIVATIVES AND HEDGING ACTIVITIES The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally to manage the Company’s interest rate risk. Additionally, the Company enters into interest rate derivatives and foreign exchange contracts to accommodate the business requirements of its customers (“customer related positions”). The Company minimizes the market and liquidity risks of customer related positions by entering into similar offsetting positions with broker-dealers. Derivative instruments are carried at fair value in the Company’s financial statements. The accounting for changes in the fair value of a derivative instrument is dependent upon whether or not it qualifies as a hedge for accounting purposes, and further, by the type of hedging relationship. The Company does not enter into proprietary trading positions for any derivatives. Interest Rate Positions The Company currently utilizes interest rate swap agreements as hedging instruments against interest rate risk associated with the Company’s borrowings. An interest rate swap is an agreement whereby one party agrees to pay a floating rate of interest on a notional principal amount in exchange for receiving a fixed rate of interest on the same notional amount, for a predetermined period of time, from a second party. The amounts relating to the notional principal amount are not actually exchanged. The maximum length of time over which the Company is currently hedging its exposure to the variability in future cash flows for forecasted transactions related to the payment of variable interest on existing financial instruments is five years. The following table reflects the Company’s derivative positions for the periods indicated below for interest rate swaps which qualify as cash flow hedges for accounting purposes: December 31, 2017 Notional Trade Effective Maturity Receive Current Pay Fixed Fair Value (Dollars in thousands) $ 25,000 9-Dec-08 10-Dec-08 10-Dec-18 3 Month LIBOR 1.54 % 2.94 % $ (264 ) 25,000 1-Apr-16 17-Jan-17 15-Dec-21 3 Month LIBOR 1.59 % 1.36 % 772 25,000 1-Apr-16 17-Jan-17 15-Dec-21 3 Month LIBOR 1.59 % 1.36 % 763 25,000 18-Jul-17 15-Aug-17 15-Aug-22 3 Month LIBOR 1.42 % 1.88 % 345 $ 100,000 $ 1,616 December 31, 2016 Notional Trade Effective Maturity Receive Current Pay Fixed Fair Value (Dollars in thousands) $ 25,000 9-Dec-08 10-Dec-08 10-Dec-18 3 Month LIBOR 0.95 % 2.94 % $ (740 ) 25,000 1-Apr-16 17-Jan-17 15-Dec-21 3 Month LIBOR N/A 1.36 % 689 25,000 1-Apr-16 17-Jan-17 15-Dec-21 3 Month LIBOR N/A 1.36 % 675 $ 75,000 $ 624 For derivative instruments that are designated and qualify as cash flow hedging instruments, the effective portion of the gains or losses is reported as a component of other comprehensive income ("OCI"), and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The Company expects approximately $202,000 (pre-tax) to be reclassified as an offset to interest expense from OCI, related to the Company’s cash flow hedges, in the next twelve months. This reclassification is due to anticipated payments that will be made and/or received on the swaps based upon the forward curve as of December 31, 2017 . The Company recognized $244,000 of net amortization income that was an offset to interest expense related to previously terminated swaps for the years ended December 31, 2017 , 2016 and 2015 . The Company had no fair value hedges during 2017 , 2016 and 2015 . Customer Related Positions Loan level derivatives, primarily interest rate swaps, offered to commercial borrowers through the Company’s loan level derivative program do not qualify as hedges for accounting purposes. The Company believes that its exposure to commercial customer derivatives is limited because these contracts are simultaneously matched at inception with an offsetting dealer transaction. The commercial customer derivative program allows the Company to retain variable-rate commercial loans while allowing the customer to synthetically fix the loan rate by entering into a variable-to-fixed interest rate swap. The amounts relating to the notional principal amount are not actually exchanged. Foreign exchange contracts offered to commercial borrowers through the Company’s derivative program do not qualify as hedges for accounting purposes. The Company acts as a seller and buyer of foreign exchange contracts to accommodate its customers. To mitigate the market and liquidity risk associated with these derivatives, the Company enters into similar offsetting positions. The amounts relating to the notional principal amount are exchanged. The following table reflects the Company’s customer related derivative positions for the periods indicated below for those derivatives not designated as hedging: Number of Notional Amount Maturing Less than 1 year Less than 2 years Less than 3 years Less than 4 years Thereafter Total Fair Value December 31, 2017 (Dollars in thousands) Loan level swaps Receive fixed, pay variable 246 $ 36,023 $ 61,500 $ 152,287 $ 111,147 $ 591,385 $ 952,342 $ 3,875 Pay fixed, receive variable 231 $ 36,023 $ 61,500 $ 152,287 $ 111,147 $ 591,385 $ 952,342 $ (3,880 ) Foreign exchange contracts Buys foreign currency, sells U.S. currency 15 $ 26,382 $ 3,780 $ — $ — $ — $ 30,162 $ 1,202 Buys U.S. currency, sells foreign currency 15 $ 26,382 $ 3,780 $ — $ — $ — $ 30,162 $ (1,188 ) December 31, 2016 (Dollars in thousands) Loan level swaps Receive fixed, pay variable 222 $ 30,245 $ 21,708 $ 63,771 $ 165,783 $ 567,897 $ 849,404 $ 12,005 Pay fixed, receive variable 207 $ 30,245 $ 21,708 $ 63,771 $ 165,783 567,897 $ 849,404 $ (12,008 ) Foreign exchange contracts Buys foreign currency, sells U.S. currency 33 $ 45,711 $ — $ — $ — $ — $ 45,711 $ (2,250 ) Buys U.S. currency, sells foreign currency 33 $ 45,711 $ — $ — $ — $ — $ 45,711 $ 2,277 (1) The Company may enter into one dealer swap agreement which offsets multiple commercial borrower swap agreements. Mortgage Derivatives Prior to closing and funding certain 1- 4 family residential mortgage loans, an interest rate lock commitment is generally extended to the borrower. During the period from commitment date to closing date, the Company is subject to the risk that market rates of interest may change. If market rates rise, investors generally will pay less to purchase such loans resulting in a reduction in the gain on sale of the loans or, possibly, a loss. In an effort to mitigate such risk, forward delivery sales commitments are executed, under which the Company agrees to deliver whole mortgage loans to various investors. These forward commitments carry a market price that has a strong inverse relationship to that of mortgage prices. Certain assumptions, including pull through rates and rate lock periods, are used in managing the existing and future economic hedges. The effectiveness of the economic hedges rely on the accuracy of these assumptions. The change in fair value on the interest rate lock commitments and forward delivery sale commitments are recorded in current period earnings as a component of mortgage banking income. In addition, the Company has elected the fair value option to carry loans held for sale at fair value. The change in fair value of loans held for sale is recorded in current period earnings as a component of mortgage banking income in accordance with the Company's fair value election. The change in fair value associated with loans held for sale was a decrease of $113,000 , an increase of $87,000 and a decrease of $22,000 for the years ended December 31 , 2017 , 2016 , and 2015 , respectively. These amounts were offset in earnings by the change in the fair value of mortgage derivatives. Additionally, the aggregate amount of net realized gains or losses on sales of such loans included within mortgage banking income amounted to $4.7 million , $6.1 million and $4.7 million for the years ended December 31 , 2017 , 2016 and 2015 , respectively. The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the balance sheet at the periods indicated: Asset Derivatives Liability Derivatives Fair Value at Fair Value at Fair Value at Fair Value at Balance Sheet December 31, 2017 December 31, 2016 Balance Sheet December 31, 2017 December 31, 2016 (Dollars in thousands) Derivatives designated as hedges Interest rate derivatives Other assets $ 1,880 $ 1,364 Other liabilities $ 264 $ 740 Derivatives not designated as hedges Customer Related Positions: Loan level derivatives Other assets 14,236 18,629 Other liabilities 14,241 18,632 Foreign exchange contracts Other assets 1,202 2,338 Other liabilities 1,188 2,311 Mortgage Derivatives Interest rate lock commitments Other assets 149 430 Other liabilities — — Forward sales agreements Other assets 9 — Other liabilities — 233 15,596 21,397 15,429 21,176 Total $ 17,476 $ 22,761 $ 15,693 $ 21,916 The table below presents the effect of the Company’s derivative financial instruments included in OCI and current earnings for the periods indicated: Years Ended December 31 2017 2016 2015 (Dollars in thousands) Derivatives designated as hedges Gain in OCI on derivatives (effective portion), net of tax $ 443 $ 2,170 $ 1,199 Loss reclassified from OCI into interest expense (effective portion) $ (441 ) $ (2,520 ) $ (2,828 ) Loss recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) Interest expense $ — $ — $ — Other expense — — — Total $ — $ — $ — Derivatives not designated as hedges Changes in fair value of customer related positions Other income $ 6 $ 73 $ 60 Other expenses (21 ) (82 ) (53 ) Changes in fair value of mortgage derivatives Mortgage banking income (39 ) (35 ) (50 ) Total $ (54 ) $ (44 ) $ (43 ) The Company's derivative agreements with institutional counterparties contain various credit-risk related contingent provisions, such as requiring the Company to maintain a well-capitalized capital position. If the Company fails to meet these conditions, the counterparties could request the Company make immediate payment or demand that the Company provide immediate and ongoing full collateralization on derivative positions in net liability positions. The aggregate fair value of all derivative instruments with credit-risk related contingent features that were in a net liability position was $4.2 million and $12.8 million at December 31, 2017 and December 31, 2016 , respectively. Although none of the contingency provisions have applied as of December 31, 2017 and December 31, 2016 , the Company has posted collateral to offset the net liability exposure with institutional counterparties. 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. Institutional counterparties must have an investment grade credit rating and be approved by the Company’s Board of Directors. As such, management believes the risk of incurring credit losses on derivative contracts with those counterparties is remote. The Company's exposure relating to institutional counterparties was $7.1 million and $4.7 million at December 31, 2017 and 2016 , respectively. The Company’s exposure relating to customer counterparties was approximately $9.5 million and $16.1 million at December 31, 2017 and 2016 , respectively. Credit exposure may be reduced by the amount of collateral pledged by the counterparty. |
BALANCE SHEET OFFSETTING
BALANCE SHEET OFFSETTING | 12 Months Ended |
Dec. 31, 2017 | |
Offsetting [Abstract] | |
Balance Sheet Offsetting Disclosure [Text Block] | BALANCE SHEET OFFSETTING The Company does not offset fair value amounts recognized for derivative instruments or repurchase agreements. The Company does net the amount recognized for the right to reclaim cash collateral against the obligation to return cash collateral arising from derivative instruments executed with the same counterparty under a master netting arrangement. Collateral legally required to be maintained at dealer banks by the Company is monitored and adjusted as necessary. The following tables present the Company's asset and liability derivative positions and the potential effect of netting arrangements on its financial position, as of the periods indicated: Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts Recognized in the Statement of Financial Position Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Financial Instruments (1) Collateral Pledged (Received) Net Amount December 31, 2017 (Dollars in thousands) Derivative Assets Interest rate swaps $ 1,880 $ — $ 1,880 $ 805 $ — $ 1,075 Loan level derivatives 14,236 — 14,236 4,578 — 9,658 Customer foreign exchange contracts 1,202 — 1,202 — — 1,202 $ 17,318 $ — $ 17,318 $ 5,383 $ — $ 11,935 Derivative Liabilities Interest rate swaps $ 264 $ — $ 264 $ — $ 264 $ — Loan level derivatives 14,241 — 14,241 5,383 3,675 5,183 Customer foreign exchange contracts 1,188 — 1,188 — — 1,188 $ 15,693 $ — $ 15,693 $ 5,383 $ 3,939 $ 6,371 Customer repurchase agreements $ 162,679 $ — $ 162,679 $ — $ 162,679 $ — (1) Reflects offsetting derivative positions with the same counterparty. Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts Recognized in the Statement of Financial Position Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Financial Instruments (1) Collateral Pledged (Received) Net Amount December 31, 2016 (Dollars in thousands) Derivative Assets Interest rate swaps $ 1,364 $ — $ 1,364 $ 961 $ — $ 403 Loan level derivatives 18,629 — 18,629 3,261 — 15,368 Customer foreign exchange contracts 2,338 — 2,338 — — 2,338 $ 22,331 $ — $ 22,331 $ 4,222 $ — $ 18,109 Derivative Liabilities Interest rate swaps $ 740 $ — $ 740 $ — $ 740 $ — Loan level derivatives 18,632 — 18,632 4,222 11,106 3,304 Customer foreign exchange contracts 2,311 — 2,311 — — 2,311 $ 21,683 $ — $ 21,683 $ 4,222 $ 11,846 $ 5,615 Customer repurchase agreements $ 176,913 $ — $ 176,913 $ — $ 176,913 $ — (1) Reflects offsetting derivative positions with the same counterparty. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES On December 22, 2017, the Tax Act was signed into law. At December 31, 2017, the Company has not completed its accounting for the tax effect of enactment of the Tax Act; however, it made a reasonable estimate of the effects on its existing deferred tax balances. One of the provisions included in the Tax Act was the reduction in the maximum federal corporate income tax rate from 35% to 21%, effective January 1, 2018. As a result of this rate reduction, the Company remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21% for Federal tax purposes. However, the Company is still analyzing certain aspects of the Tax Act and redefining its calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. The provisional amount recorded related to the remeasurement of deferred tax assets and liabilities was $1.9 million . The Company also recognized a provisional estimate of $466,000 to reassess the value of its low income housing projects investments ("LIHTC investments"), The impact of these provisional estimates are included in the disclosures below. The provision for income taxes is comprised of the following components: Years Ended December 31 2017 2016 2015 (Dollars in thousands) Current expense Federal $ 28,852 $ 26,549 $ 11,946 State 9,278 8,883 5,052 Total current expense 38,130 35,432 16,998 Deferred expense (benefit) Federal 7,953 153 8,466 State 1,258 (158 ) 1,754 Total deferred expense (benefit) 9,211 (5 ) 10,220 Total expense $ 47,341 $ 35,427 $ 27,218 The difference between the statutory federal income tax rate of 35% and the effective income tax rate reported for the last three years is detailed below: Years Ended December 31 2017 2016 2015 (Dollars in thousands) Computed statutory federal income tax provision $ 47,091 35.00 % $ 39,226 35.00 % $ 32,262 35.00 % State taxes, net of federal tax benefit 6,817 5.07 % 5,643 5.03 % 4,500 4.88 % Revaluation of net deferred tax assets 1,895 1.41 % — — % — — % Merger and other related costs (non-deductible) 213 0.16 % 210 0.19 % 185 0.20 % Change in valuation allowance 31 0.02 % 28 0.02 % 41 0.04 % New Markets Tax Credits (3,960 ) (2.94 )% (6,360 ) (5.67 )% (6,514 ) (7.07 )% Increase in cash surrender value of life insurance (1,445 ) (1.07 )% (1,431 ) (1.28 )% (1,292 ) (1.40 )% Stock-based compensation (1,258 ) (0.94 )% — — % — — % Low Income Housing Project Investments (1,253 ) (0.93 )% (1,641 ) (1.46 )% (1,182 ) (1.28 )% Nontaxable interest, net (987 ) (0.73 )% (996 ) (0.89 )% (973 ) (1.06 )% Other, net 197 0.15 % 748 0.67 % 191 0.22 % Total expense $ 47,341 35.20 % $ 35,427 31.61 % $ 27,218 29.53 % The tax-effected components of the net deferred tax asset at December 31 were as follows: 2017 2016 (Dollars in thousands) Deferred tax assets Accrued expenses not deducted for tax purposes $ 9,268 $ 15,401 Allowance for loan losses 16,702 24,681 Deferred gain on sale leaseback transaction 909 1,744 Employee and director equity compensation 1,559 2,095 Federal Home Loan Bank borrowings fair value adjustment 26 82 Loan basis difference fair value adjustment 3,070 4,336 Net operating loss carry-forward 127 69 Net unrealized loss on securities available for sale 106 — Other 527 1,015 Gross deferred tax assets 32,294 49,423 Valuation allowance (121 ) (69 ) Total deferred tax assets net of valuation allowance $ 32,173 $ 49,354 Deferred tax liabilities Core deposit and other intangibles $ 2,057 $ 3,040 Deferred loan fees, net 4,275 5,407 Fixed assets 5,270 6,168 Goodwill 10,265 14,737 Net unrealized gain on securities available for sale — 105 Derivatives fair value adjustment 524 454 Other 4,307 3,909 Gross deferred tax liabilities $ 26,698 $ 33,820 Total net deferred tax asset $ 5,475 $ 15,534 Deferred tax assets are to be reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The realization of the tax benefit depends upon the existence of sufficient taxable income within the carry-back and future periods. The Company believes that it is more likely than not that its deferred tax assets as of December 31, 2017 , excluding the deferred tax asset on certain state net operating losses, will be realized through the utilization of carry-back provisions to taxable income on prior years, future reversals of existing taxable temporary differences and by offsetting other future taxable income. The Company believes it is more likely than not that the deferred tax asset related to certain state net operating losses generated from the Company's investments in low income housing partnerships, which expire over a 20-year period, will not be realized and has recorded a valuation allowance of $121,000 at December 31, 2017 , attributable to this deferred tax asset. The Company has utilized all federal net operating loss carry forwards acquired from recent acquisitions that were subject to annual change in ownership limitations under Internal Revenue Code Section 382 as of December 31, 2017 . In addition, the Company does not have a federal net operating loss carry forward or general business credit carry forward subject to expiration as of December 31, 2017 . Uncertainty in Income Taxes The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction as well as in various states. The Company is subject to U.S. federal, state and local income tax examinations by tax authorities for the 2014 through 2016 tax years including any related income tax filings from its recent acquisitions. The Company believes that its income tax returns have been filed based upon applicable statutes, regulations and case law in effect at the time of filing, however, the Internal Revenue Service ("IRS") and /or state jurisdictions could disagree with the Company's interpretation upon examination. The Company accounts for uncertainties in income taxes by providing a tax reserve for certain positions. The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits: (Dollars in thousands) Balance at December 31, 2015 $ 81 Reduction of tax positions for prior years — Increase for prior year tax position — Increase for current year tax positions 30 Balance at December 31, 2016 $ 111 Reduction of tax positions for prior years — Increase for prior year tax positions — Increase for current year tax positions 31 Balance at December 31, 2017 $ 142 Increases to the Company's unrealized tax positions occur as a result of accruing for the unrecognized tax benefit as well the accrual of interest and penalties related to prior year positions. Decreases in the Company's unrealized tax positions occur as a result of the statute of limitation lapsing on prior year positions and/or settlements relating to outstanding positions. The table above does not include the indirect federal benefit of state tax positions of approximately $21,000 . All of the Company’s unrecognized tax benefits, including the indirect federal benefit of state tax positions, are recorded as a component of income tax expense. During the years ended December 31, 2017 and 2016, the Company recognized approximately $18,000 and $11,000 in the provision for income taxes for interest and penalties related to uncertain tax positions. There were no such amounts recorded in the tax provision in 2015. As such, the Company has accrued approximately $29,000 and $11,000 for the payment of interest and penalties as of December 31, 2017 and 2016, respectively, which are not included in the table above. |
LOW INCOME HOUSING PROJECT INVE
LOW INCOME HOUSING PROJECT INVESTMENTS Low Income Housing Project Investments | 12 Months Ended |
Dec. 31, 2017 | |
Low Income Housing Project Investments [Abstract] | |
Investments in Low Income Housing Projects [Text Block] | LOW INCOME HOUSING PROJECT INVESTMENTS The Company has invested in low income housing projects that generate Low Income Housing Tax Credits (“LIHTC”) which provide the Company with tax credits and operating loss tax benefits over a period of approximately 15 years. None of the original investment is expected to be repaid. The following table presents certain information related to the Company's investments in low income housing projects as of December 31: 2017 2016 2015 (Dollars in thousands) Original investment value $ 47,399 $ 47,379 $ 42,199 Current recorded investment $ 35,225 $ 39,606 $ 38,151 Unfunded liability obligation $ 4,536 $ 12,161 $ 14,607 Tax credits and benefits earned during the year $ 5,654 $ 5,366 $ 3,632 Amortization of investments during the year (1) $ 4,402 $ 3,725 $ 2,450 Net income tax benefit recognized during the year $ 1,253 $ 1,641 $ 1,182 (1) The 2017 amount is inclusive of $466,000 related to the revaluation of Low Income Housing tax credit investments as a result of the 2017 Tax Act. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Pension The Company maintains a multiemployer defined benefit pension plan (the “Pension Plan”) administered by Pentegra Retirement Services (the “Fund” or “Pentegra Defined Benefit Plan for Financial Institutions”). The Fund does not segregate the assets or liabilities of all participating employers and accordingly, disclosure of plan assets, accumulated vested and nonvested benefits is not possible. Effective July 1, 2006, the Company froze the defined benefit plan by eliminating all future benefit accruals. In conjunction with the acquisition of Peoples Federal Bancshares, Inc., the parent of Peoples Federal Savings Bank ("Peoples") in 2015, the Company acquired the Peoples Federal Defined Benefit Pension Plan (“Peoples Plan”). The Peoples Plan was frozen at the date of acquisition and will be maintained in the same manner as the Pension Plan. The Peoples Plan is also administered by Pentegra Retirement Services under the same Fund as the Pension Plan. Additionally, in conjunction with the acquisition of Island Bancorp, the Company acquired the Edgartown National Bank Employee’s Retirement Plan. This pension plan was frozen at the date of acquisition and was subsequently dissolved. The Company’s participation in the Pension Plan and the Peoples Plan (the "Pension Plans") for the annual period ended December 31, 2017 , is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employer Identification Number (“EIN”) and the three-digit plan number. The funding status of the Pension Plans is determined on the basis of the financial statements provided by the Fund using total plan assets and accumulated benefit obligation. The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been implemented. The “Expiration Date of Collective-Bargaining Agreement” column lists the expiration dates of any collective-bargaining agreement(s) to which the Pension Plans are subject. Funding Status FIP/RP Status Surcharge Expiration Minimum EIN/Pension 2017 2016 Pentegra defined benefit plan for financial institutions 13-5645888/333 At least 80 percent At least 80 percent No No N/A $ — Contributions to the Fund are based on each individual employer’s experience. The Company bears the market risk relating to the Pension Plan and will continue to fund the Pension Plan as required. The Pension Plan year is July 1 st through June 30 th . The Company’s total contributions to the Pension Plans did not represent more than 5% of the total contributions to the Pension Plan as indicated in the Pension Plan’s most recently available annual report dated June 30, 2017 . The comparability of employer contributions is impacted by asset performance, discount rates and the reduction in the number of covered employees year over year. The Company’s contributions to the Pension Plans were as follows for the periods indicated: Required Contributions - Plan Year Allocation Cash Payment Future period funding 2017-2018 2016-2017 2015-2016 (Dollars in thousands) 2017 $ 6,432 $ 5,000 $ 1,432 $ — $ — 2016 $ 6,245 $ 4,000 $ — $ 2,245 $ — 2015 $ 2,983 $ 1,215 $ — $ — $ 1,768 The Company’s total defined benefit plan expense was $1.9 million , $2.0 million , and $1.6 million , for the years ending December 31, 2017 , 2016 , and 2015 , respectively. Financial information for the Fund is made available through the public Form 5500 which is available by April 15 th of the year following the plan year end. Postretirement Benefit Plans Employees retiring from the Bank after attaining age 65 , who have rendered at least 10 years of continuous full time service with Rockland Trust are entitled to a fixed contribution toward the premium for postretirement health care benefits and a $5,000 benefit paid upon death. The health care benefits are subject to deductibles, co-payment provisions and other limitations. The Bank may amend or change these benefits periodically. Additionally, the Company has acquired small postretirement plans and/or agreements in conjunction with various acquisitions. The expense related to these plans for the years ending December 31, 2017 , 2016 , and 2015 was not material. Supplemental Executive Retirement Plans The Bank maintains frozen defined benefit supplemental executive retirement plans (“SERP”) for certain highly compensated employees designed to offset the impact of regulatory limits on benefits under qualified pension plans. The Bank also maintains defined benefit SERPs acquired from previous acquisitions. The Bank has established and funded Rabbi Trusts to accumulate funds in order to satisfy the contractual liability of these supplemental retirement plan benefits. These agreements provide for the Bank to pay all benefits from its general assets, and the establishment of these trust funds does not reduce nor otherwise affect the Bank’s continuing liability to pay benefits from such assets except that the Bank’s liability shall be offset by actual benefit payments made from the trusts. The related trust assets included in the Company's available for sale securities portfolio totaled $16.2 million and $16.0 million at December 31, 2017 and 2016 , respectively. The following table shows the defined benefit supplemental retirement expense, and the contributions paid to the plans which were used only to pay the current year benefits as of the dates indicated: 2017 2016 2015 (Dollars in thousands) Retirement expense $ 1,580 $ 1,513 $ 1,834 Contributions paid $ 367 $ 320 $ 276 Expected future benefit payments for the defined benefit supplemental executive retirement plans are presented below: Defined Benefit Supplemental Executive (Dollars in thousands) 2018 $ 408 2019 $ 481 2020 $ 467 2021 $ 461 2022 $ 454 2023-2027 $ 5,366 The measurement date used to determine the defined benefit supplemental executive retirement plans' benefits is December 31 for each of the years reported. The following table illustrates the status of the defined benefit supplemental executive retirement plans at December 31 for the years presented: Defined Benefit Supplemental Executive 2017 2016 2015 (Dollars in thousands) Change in accumulated benefit obligation Benefit obligation at beginning of year $ 14,177 $ 13,290 $ 12,537 Accumulated service cost 423 395 742 Interest cost 547 539 470 Actuarial loss/(gain) 969 273 (183 ) Benefits paid (367 ) (320 ) (276 ) Accumulated benefit obligation at end of year $ 15,749 $ 14,177 $ 13,290 Change in plan assets Fair value of plan assets at beginning of year $ — $ — $ — Employer contribution 367 320 276 Benefits paid (367 ) (320 ) (276 ) Fair value of plan assets at end of year $ — $ — $ — Funded status at end of year $ (15,749 ) $ (14,177 ) $ (13,290 ) Assets — — — Liabilities (15,749 ) (14,177 ) (13,290 ) Accrued benefit cost $ (15,749 ) $ (14,177 ) $ (13,290 ) Amounts recognized in accumulated other comprehensive income (“AOCI”) Net loss $ 3,465 $ 2,830 $ 2,859 Prior service cost 1,047 1,323 1,599 Amounts recognized in AOCI $ 4,512 $ 4,153 $ 4,458 Information for plans with an accumulated benefit obligation in excess of plan assets Projected benefit obligation $ 15,749 $ 14,177 $ 13,290 Accumulated benefit obligation $ 15,749 $ 14,177 $ 13,290 Net periodic benefit cost Service cost $ 423 $ 395 $ 742 Interest cost 547 539 470 Amortization of prior service cost 276 276 305 Recognized net actuarial loss 334 303 317 Net periodic benefit cost $ 1,580 $ 1,513 $ 1,834 Amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit cost over next fiscal year Net actuarial loss $ 415 $ 338 $ 270 Net prior service cost $ 276 $ 276 $ 276 Discount rate used for benefit obligation 2.48-3.45% 2.49-3.94% 2.49-4.16% Discount rate used for net periodic benefit cost 2.49-3.94% 2.49-4.16% 2.24-3.84% Rate of compensation increase n/a n/a n/a Other Employee Benefits The Bank from time to time creates an incentive compensation plan for senior management and other officers to participate in at varying levels. In addition, the Bank may also pay a discretionary bonus to senior management, officers, and/or non-officers of the Bank. The expense for the incentive plans and the discretionary bonus amounted to $10.9 million in 2017 and $10.3 million in both 2016 and 2015 . The Bank has an Employee Savings Plan that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under the Employee Savings Plan, participating employees may defer a portion of their earnings, not to exceed the Internal Revenue Service annual contribution limits. The Bank matches 25% of each employee’s contributions up to the first 6% of the employee’s earnings. The 401(k) Plan incorporates an Employee Stock Ownership Plan for contributions invested in the Company’s common stock. This Plan also provides nondiscretionary contributions in which employees, with one year and 1,000 hours of service, receive a 5% cash contribution of eligible pay up to the social security limit and a 10% cash contribution of eligible pay over the social security limit up to the maximum amount permitted by law. Benefits contributed to employees under this defined contribution plan vest immediately. The defined contribution plan expense was $5.0 million , $4.8 million and $4.5 million for the years ended December 2017 , 2016 and 2015 , respectively. The Company has a non-qualified deferred compensation plan which allows for deferrals of incentive payments until an elected distribution date in the future. This deferred compensation plan is available to certain highly compensated employees. Deferrals are invested at the election of the participant into one of the actively managed funds made available to the participant through the Company's Investment Management Group. The funds are held in a Rabbi Trust until the elected date of distribution. The Company has a non-qualified 401(k) Restoration Plan ("Restoration Plan") for certain executive officers. The Restoration Plan is intended to contribute to each participant the amount of matching and discretionary contributions which would have been made to the existing Rockland Trust 401(k) plan on the participant's behalf, but were prohibited due to Internal Revenue Code limitations. Deferrals are invested at the election of the participant into one of the actively managed funds made available to the participant through the Company's Investment Management Group or in the Company's stock. These funds are held in a Rabbi Trust until the elected date of distribution. The Company recognized expense of $267,000 , $425,000 and $232,000 related to this plan for services performed for the years ended December 31, 2017 , 2016 and 2015 , respectively. As a result of the acquisition of Peoples in 2015, the Company assumed an Employee Stock Ownership Plan and a 401(k) Plan. The Company received approval and terminated both plans during 2016, and as such, there was no expense associated with either plan during 2017 , 2016 and 2015 . Also as part of the Peoples acquisition, the Company assumed various Salary Continuation Agreements with certain current and former senior executives. The agreements require the payment of specified benefits upon retirement over periods of ten or twenty years as described in each agreement. Expense related to the Salary Continuation Agreements was $279,000 , $272,000 and $222,000 for the years ended December 31, 2017 , 2016 and 2015 , respectively. The Company also assumed a Peoples supplemental retirement plan with a former executive, whereby the amounts paid under this plan commenced upon the executive's retirement and continue for his lifetime. Expense related to the supplemental retirement plan was $11,000 , $13,000 and $11,000 for the years ended December 31, 2017 , 2016 and 2015 , respectively. Director Benefits The Company maintains a deferred compensation plan for the Company’s Board of Directors. The Board of Directors is entitled to elect to defer their director’s fees until retirement. If the Director elects to do so, their compensation is invested in the Company’s stock and maintained within the Company’s Investment Management Group. The amount of compensation deferred during 2017 , 2016 , and 2015 was $143,000 , $142,000 , and $149,000 , respectively. At December 31, 2017 and 2016 , the Company had 161,961 and 168,352 of shares provided for the plan with a related liability of $4.5 million and $4.2 million established within shareholders’ equity, respectively. As a result of the Peoples acquisition during 2015, the Company assumed several Director Retirement Agreements. The agreements require the payment of specified benefits upon retirement over periods of ten or twenty years as described in each agreement. Expense for the Director Retirement Agreements was $38,000 , $40,000 and $35,000 for the years ended December 31, 2017 , 2016 and 2015 , respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Company’s own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. If there has been a significant decrease in the volume and level of activity for the asset or liability, regardless of the valuation technique(s) used, the objective of a fair value measurement remains the same. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. The Company uses prices and inputs that are current as of the measurement date. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from one level to another. The Fair Value Measurements and Disclosures Topic of the FASB ASC defines fair value and establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under the Fair Value Measurements and Disclosures Topic of the FASB ASC are described below: Level 1 – Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 – Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation Techniques There have been no changes in the valuation techniques used during the current period. Securities: Trading and Equity Securities These equity securities are valued based on market quoted prices. These securities are categorized in Level 1 as they are actively traded and no valuation adjustments have been applied. U.S. Government Agency Securities Fair value is estimated using either multi-dimensional spread tables or benchmarks. The inputs used include benchmark yields, reported trades, and broker/dealer quotes. These securities are classified as Level 2. Agency Mortgage-Backed Securities Fair value is estimated using either a matrix or benchmarks. The inputs used include benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. These securities are categorized as Level 2. Agency Collateralized Mortgage Obligations and Small Business Administration Pooled Securities The valuation model for these securities is volatility-driven and ratings based, and uses multi-dimensional spread tables. The inputs used include benchmark yields, reported trades, new issue data, broker dealer quotes, and collateral performance. If there is at least one significant model assumption or input that is not observable, these securities are categorized as Level 3 within the fair value hierarchy; otherwise, they are classified as Level 2. State, County, and Municipal Securities The fair value is estimated using a valuation matrix with inputs including bond interest rate tables, recent transaction, and yield relationships. These securities are categorized as Level 2. Single and Pooled Issuer Trust Preferred Securities The fair value of trust preferred securities, including pooled and single issuer preferred securities, is estimated using external pricing models, discounted cash flow methodologies or similar techniques. The inputs used in these valuations include benchmark yields, reported trades, new issue data, broker dealer quotes, and collateral performance. If there is at least one significant model assumption or input that is not observable, these securities are classified as Level 3 within the fair value hierarchy; otherwise, they are classified as Level 2. Loans Held for Sale The Company has elected the fair value option to account for originated closed loans intended for sale. The fair value is measured on an individual loan basis using quoted market prices and when not available, comparable market value or discounted cash flow analysis may be utilized. These assets are typically classified as Level 2. Derivative Instruments Derivatives The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Company incorporates credit valuation adjustments to appropriately reflect nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings. Additionally, in conjunction with fair value measurement guidance, the Company has made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Although the Company has determined that the majority of the inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. However, as of December 31, 2017 and 2016 , the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2. Mortgage Derivatives The fair value of mortgage derivatives is determined based on current market prices for similar assets in the secondary market and, therefore, classified as Level 2 within the fair value hierarchy. Impaired Loans Collateral dependent loans that are deemed to be impaired are valued based upon the lower of cost or fair value of the underlying collateral less costs to sell. The inputs used in the appraisals of the collateral are not always observable, and therefore the loans may be classified as Level 3 within the fair value hierarchy; otherwise, they are classified as Level 2. Other Real Estate Owned and Other Foreclosed Assets The fair values are generally estimated based upon recent appraisal values of the property less costs to sell the property, as Other Real Estate Owned ("OREO") and Other Foreclosed Assets are valued at the lower of cost or fair value of the property, less estimated costs to sell. Certain inputs used in appraisals are not always observable, and therefore OREO and Other Foreclosed Assets are classified as Level 3 within the fair value hierarchy. Goodwill and Other Intangible Assets Goodwill and identified intangible assets are subject to impairment testing. The Company conducts an annual impairment test of goodwill in the third quarter of each year, or more frequently if necessary, and other intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. To estimate the fair value of goodwill and, if necessary, other intangible assets, the Company utilizes both a comparable analysis of relevant price multiples in recent market transactions and discounted cash flow analysis. Both valuation models require a significant degree of management judgment. In the event the fair value as determined by the valuation model is less than the carrying value, the intangibles may be impaired. If the impairment testing resulted in impairment, the Company would classify the impaired goodwill and other intangible assets subjected to nonrecurring fair value adjustments as Level 3. Assets and liabilities measured at fair value on a recurring and nonrecurring basis were as follows as of the dates indicated: Fair Value Measurements at Reporting Date Using Balance Quoted Prices in Significant Other Significant December 31, 2017 (Dollars in thousands) Recurring fair value measurements Assets Trading securities $ 1,324 $ 1,324 $ — $ — Securities available for sale U.S. Government agency securities 35,430 — 35,430 — Agency mortgage-backed securities 215,764 — 215,764 — Agency collateralized mortgage obligations 122,012 — 122,012 — State, county, and municipal securities 2,274 — 2,274 — Single issuer trust preferred securities issued by banks and insurers 2,016 — 2,016 — Pooled trust preferred securities issued by banks and insurers 1,640 — — 1,640 Small business administration pooled securities 47,778 — 47,778 — Equity securities 20,584 20,584 — — Loans held for sale 4,768 — 4,768 — Derivative instruments 17,476 — 17,476 — Liabilities Derivative instruments 15,693 — 15,693 — Total recurring fair value measurements $ 455,373 $ 21,908 $ 431,825 $ 1,640 Nonrecurring fair value measurements Assets Collateral dependent impaired loans $ 33,567 $ — $ — $ 33,567 Other real estate owned and other foreclosed assets 612 — — 612 Total nonrecurring fair value measurements $ 34,179 $ — $ — $ 34,179 Fair Value Measurements at Reporting Date Using Balance Quoted Prices in Significant Other Significant December 31, 2016 (Dollars in thousands) Recurring fair value measurements Assets Trading securities $ 804 $ 804 $ — $ — Securities available for sale U.S. Government agency securities 24,244 $ — 24,244 — Agency mortgage-backed securities 175,384 — 175,384 — Agency collateralized mortgage obligations 99,868 — 99,868 — State, county, and municipal securities 3,793 — 3,793 — Single issuer trust preferred securities issued by banks and insurers 2,311 — 2,311 — Pooled trust preferred securities issued by banks and insurers 1,584 — — 1,584 Small business administration pooled securities 37,189 — 37,189 — Equity securities 19,271 19,271 — — Loans held for sale 6,139 — 6,139 — Derivative instruments 22,761 — 22,761 — Liabilities Derivative instruments 21,916 — 21,916 — Total recurring fair value measurements $ 371,432 $ 20,075 $ 349,773 $ 1,584 Nonrecurring fair value measurements: Assets Collateral dependent impaired loans $ 33,974 $ — $ — $ 33,974 Other real estate owned and other foreclosed assets 4,173 — — 4,173 Total nonrecurring fair value measurements $ 38,147 $ — $ — $ 38,147 All assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were valued using pricing models and discounted cash flow methodologies, as of December 31, 2017 , 2016 and 2015 . This reconciliation is presented in the table below, for the periods indicated: 2017 2016 2015 (Dollars in thousands) Pooled Trust Preferred Securities Beginning balance $ 1,584 $ 1,572 $ 6,321 Gain and (losses) (realized/unrealized) Included in other comprehensive income 77 29 14 Sales — — (4,679 ) Settlements (21 ) (17 ) (84 ) Ending Balance $ 1,640 $ 1,584 $ 1,572 It is the Company’s policy to recognize the transfers between levels of the fair value hierarchy as of the end of the reporting period. There were no transfers between the levels of the fair value hierarchy for any assets or liabilities measured at fair value on a recurring basis during the years ended December 31, 2017 , 2016 and 2015 . The following table sets forth certain unobservable inputs regarding the Company's financial instruments that are classified as Level 3 as of December 31st for the years indicated: Valuation Technique Fair Value Unobservable Inputs Range Weighted Average 2017 2016 2017 2016 2017 2016 (Dollars in thousands) Discounted cash flow methodology Pooled trust preferred securities $ 1,640 $ 1,584 Cumulative prepayment 0% - 61% 0% - 62% 2.5% 2.5% Cumulative default 5% - 100% 5% - 100% 12.4% 12.8% Loss given default 85% - 100% 85% - 100% 94.3% 94.2% Cure given default 0% - 75% 0% - 75% 60.9% 60.9% Appraisals of collateral (1) Collateral dependent impaired loans $ 33,567 $ 33,974 Other real estate owned and foreclosed assets $ 612 $ 4,173 (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of these possible adjustments may vary. For the fair value measurements in the table above, which are classified as Level 3 within the fair value hierarchy, the Company’s Treasury and Finance groups determine the valuation policies and procedures. For the pricing of the securities, the Company uses third-party pricing information, without adjustment. Depending on the type of the security, management employs various techniques to analyze the pricing it receives from third parties, such as analyzing changes in market yields and in certain instances reviewing the underlying collateral of the security. Management reviews changes in fair value from period to period and performs testing to ensure that prices received from the third parties are consistent with their expectation of the market. For the securities whose market is deemed to be inactive and which are categorized as Level 3, the fair value models are calibrated and significant inputs are back tested on a quarterly basis, to the extent possible. This testing is done by the third party service provider, who performs this testing by comparing anticipated inputs to actual results. Significant changes in fair value from period to period are closely scrutinized to ensure fair value models are not flawed. The driver(s) of the respective change in fair value and the method for forecasting the driver(s) is closely considered by management. The significant unobservable inputs used in the fair value measurement of the Company’s pooled trust preferred securities are cumulative prepayment rates, cumulative defaults, loss given defaults and cure given defaults. Significant increases (decreases) in deferrals or defaults, in isolation, would result in a significantly lower (higher) fair value measurement. Alternatively, significant increases (decreases) in cure rates, in isolation, would result in a significantly higher (lower) fair value measurement. Additionally, the Company has certain assets which are marked to fair value on a nonrecurring basis which are categorized within Level 3. These assets include collateral dependent impaired loans and OREO. The determination of the fair value amount is derived from the use of independent third party real estate appraisals and evaluations. Real estate appraisals are prepared by firms from a predetermined list of qualified and approved appraisers or evaluators. Upon receipt of a real estate appraisal or evaluation, the Company's Commercial Real Estate Appraisal Department will review the report for compliance with regulatory and Company standards, as well as reasonableness and acceptance of the value conclusions. Any issues or concerns regarding compliance or value conclusions will be addressed with the engaged firm and the report may be adjusted or revised. If a disagreement cannot be resolved, the Company will either address the key issues and modify the report for acceptance or reject the report and re-order a new report. Ultimately, the Company will confirm the collateral value as part of its review process. The estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below as of the periods indicated: Fair Value Measurements at Reporting Date Using Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2017 (Dollars in thousands) Financial assets Securities held to maturity(a) U.S. Treasury securities $ 1,006 $ 1,035 $ — $ 1,035 $ — Agency mortgage-backed securities 204,768 205,823 — 205,823 — Agency collateralized mortgage obligations 262,998 258,408 — 258,408 — Single issuer trust preferred securities issued by banks 1,500 1,529 — 1,529 — Small business administration pooled securities 27,416 27,399 — 27,399 — Loans, net of allowance for loan losses(b) 6,261,343 6,116,051 — — 6,116,051 Federal Home Loan Bank stock(c) 11,597 11,597 — 11,597 — Cash surrender value of life insurance policies(d) 151,528 151,528 — 151,528 — Financial liabilities Deposit liabilities, other than time deposits(e) $ 6,084,952 $ 6,084,952 $ — $ 6,084,952 $ — Time certificates of deposits(f) 644,301 639,060 — 639,060 $ — Federal Home Loan Bank borrowings(f) 53,264 52,111 — 52,111 — Customer repurchase agreements and other short-term borrowings(f) 162,679 162,679 — — 162,679 Junior subordinated debentures(g) 73,073 74,680 — 74,680 — Subordinated debentures(f) 34,682 32,707 — — 32,707 Fair Value Measurements at Reporting Date Using Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2016 Financial assets (Dollars in thousands) Securities held to maturity(a) U.S. Treasury securities $ 1,007 $ 1,054 $ — $ 1,054 $ — Agency mortgage-backed securities 156,088 157,504 — 157,504 — Agency collateralized mortgage obligations 297,445 294,650 — 294,650 — Single issuer trust preferred securities issued by banks 1,500 1,544 — 1,544 — Small business administration pooled securities 31,036 30,898 — 30,898 — Loans, net of allowance for loan losses(b) 5,904,065 5,784,778 — — 5,784,778 Federal Home Loan Bank stock(c) 11,497 11,497 — 11,497 — Cash surrender value of life insurance policies(d) 144,503 144,503 — 144,503 — Financial liabilities Deposit liabilities, other than time deposits(e) $ 5,763,101 $ 5,763,101 $ — $ 5,763,101 $ — Time certificates of deposits(f) 649,152 647,038 — 647,038 — Federal Home Loan Bank borrowings(f) 50,819 50,898 — 50,898 — Customer repurchase agreements and other short-term borrowings(f) 176,913 176,913 — — 176,913 Junior subordinated debentures(g) 73,107 72,510 — 72,510 — Subordinated debentures(f) 34,635 34,241 — — 34,241 (a) The fair values presented are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments and/or discounted cash flow analysis. (b) Fair value is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities or cash flows. Additionally, this amount excludes collateral dependent impaired loans, which are deemed to be marked to fair value on a nonrecurring basis. (c) FHLB stock has no quoted market value and is carried at cost, therefore the carrying amount approximates fair value. (d) Cash surrender value of life insurance is recorded at its cash surrender value (or the amount that can be realized upon surrender of the policy), therefore carrying amount approximates fair value. (e) Fair value of demand deposits, savings and interest checking accounts and money market deposits is the amount payable on demand at the reporting date. (f) Fair value was determined by discounting anticipated future cash payments using rates currently available for instruments with similar remaining maturities. (g) Fair value was determined based upon market prices of securities with similar terms and maturities. This summary excludes certain financial assets and liabilities for which the carrying value approximates fair value. For financial assets, these may include cash and due from banks, federal funds sold and short-term investments. For financial liabilities, these may include federal funds purchased. These instruments would all be considered to be classified as Level 1 within the fair value hierarchy. Also excluded from the summary are financial instruments measured at fair value on a recurring and nonrecurring basis, as previously described. The Company considers its financial instruments' current use to be the highest and best use of the instruments. |
OTHER COMPREHENSIVE LOSS
OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
OTHER COMPREHENSIVE LOSS | OTHER COMPREHENSIVE INCOME (LOSS) The following table presents a reconciliation of the changes in the components of other comprehensive income (loss) for the dates indicated, including the amount of income tax (expense) benefit allocated to each component of other comprehensive income (loss): December 31, 2017 Pre Tax Tax (Expense) After Tax (Dollars in thousands) Change in fair value of securities available for sale $ (996 ) $ 321 $ (675 ) Less: net security gains reclassified into other noninterest income (expense) 3 (1 ) 2 Net change in fair value of securities available for sale (999 ) 322 (677 ) Change in fair value of cash flow hedges 307 (125 ) 182 Less: net cash flow hedge losses reclassified into interest on borrowings expense (1) (441 ) 180 (261 ) Net change in fair value of cash flow hedges 748 (305 ) 443 Net unamortized loss related to defined benefit pension and other postretirement adjustments arising during the period (995 ) 407 (588 ) Amortization of net actuarial losses 278 (113 ) 165 Amortization of net prior service cost 276 (113 ) 163 Net change in other comprehensive income for defined benefit postretirement plans (2) (441 ) 181 (260 ) Total other comprehensive loss $ (692 ) $ 198 $ (494 ) Year Ended December 31, 2016 Pre Tax Tax (Expense) After Tax (Dollars in thousands) Change in fair value of securities available for sale $ (1,858 ) $ 710 $ (1,148 ) Less: net security losses reclassified into other noninterest income (expense) (26 ) 11 (15 ) Net change in fair value of securities available for sale (1,832 ) 699 (1,133 ) Change in fair value of cash flow hedges 1,133 (453 ) 680 Less: net cash flow hedge losses reclassified into interest on borrowings expense (1) (2,520 ) 1,030 (1,490 ) Net change in fair value of cash flow hedges 3,653 (1,483 ) 2,170 Net unamortized loss related to defined benefit pension and other postretirement adjustments arising during the period (383 ) 157 (226 ) Amortization of net actuarial losses 238 (97 ) 141 Amortization of net prior service cost 276 (113 ) 163 Net change in other comprehensive income for defined benefit postretirement plans (2) 131 (53 ) 78 Total other comprehensive income $ 1,952 $ (837 ) $ 1,115 Year Ended December 31, 2015 Pre Tax Tax (Expense) After Tax (Dollars in thousands) Change in fair value of securities available for sale $ (3,757 ) $ 1,434 $ (2,323 ) Less: net security losses reclassified into other noninterest income (expense) (405 ) 165 (240 ) Net change in fair value of securities available for sale (3,352 ) 1,269 (2,083 ) Change in fair value of cash flow hedges (776 ) 299 (477 ) Less: Net cash flow hedge losses reclassified into interest on borrowings expense (1) (2,828 ) 1,152 (1,676 ) Net change in fair value of cash flow hedges 2,052 (853 ) 1,199 Net unamortized gain related to defined benefit pension and other postretirement adjustments arising during the period 438 (193 ) 245 Amortization of net actuarial losses 243 (99 ) 144 Amortization of net prior service cost 294 (119 ) 175 Net change in other comprehensive income for defined benefit postretirement plans (2) 975 (411 ) 564 Total other comprehensive loss $ (325 ) $ 5 $ (320 ) (1) Includes the amortization of the remaining balance of a realized but unrecognized gain, net of tax, from the termination of interest rate swaps in 2009. The original gain of $1.4 million , net of tax, will be recognized in earnings through December 2018 , the original maturity date of the swap. The balance of this gain had amortized to $137,000 , $281,000 , and $427,000 at December 31, 2017 , 2016 , and 2015 , respectively. (2) The amortization of prior service costs is included in the computation of net periodic pension costs as disclosed in Note 15 - Employee Benefit Plans . Information on the Company's accumulated other comprehensive loss, net of tax, is comprised of the following components as of the periods indicated: Unrealized Gain (Loss) on Securities Unrealized Gain (Loss) on Cash Flow Hedge Deferred Gain on Hedge Transactions Defined Benefit Postretirement Plans Accumulated Other Comprehensive Income (Loss) (Dollars in Thousands) Beginning balance: January 1, 2015 $ 3,389 $ (3,298 ) $ 571 $ (2,794 ) $ (2,132 ) Net change in other comprehensive income (loss) (2,083 ) 1,343 (144 ) 564 (320 ) Ending balance: December 31, 2015 $ 1,306 $ (1,955 ) $ 427 $ (2,230 ) $ (2,452 ) Net change in other comprehensive income (loss) (1,133 ) 2,316 (146 ) 78 1,115 Ending balance: December 31, 2016 $ 173 $ 361 $ 281 $ (2,152 ) $ (1,337 ) Net change in other comprehensive income (loss) (677 ) 587 (144 ) (260 ) (494 ) Ending balance: December 31, 2017 $ (504 ) $ 948 $ 137 $ (2,412 ) $ (1,831 ) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Financial Instruments with Off-Balance Sheet Risk In the normal course of business, the Company enters into various transactions to meet the financing needs of its customers, which, in accordance with GAAP, are not included in its consolidated balance sheets. These transactions include commitments to extend credit and standby letters of credit, which involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Company minimizes its exposure to loss under these commitments by subjecting them to credit approval and monitoring procedures. The Company enters into contractual commitments to extend credit, normally with fixed expiration dates or termination clauses, at specified rates and for specific purposes. Substantially all of these commitments to extend credit are contingent upon customers maintaining specific credit standards at the time of loan funding. Standby letters of credit are written conditional commitments issued to guarantee the performance of a customer to a third party. In the event the customer does not perform in accordance with the terms of the agreement with the third party, the Company would be required to fund the commitment. The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount of the commitment. If the commitment were funded, the Company would be entitled to seek recovery from the customer. The Company’s policies generally require that standby letter of credit arrangements contain security and debt covenants similar to those contained in loan agreements. The fees collected in connection with the issuance of standby letters of credit are representative of the fair value of its obligation undertaken in issuing the guarantee. In accordance with applicable accounting standards related to guarantees, fees collected in connection with the issuance of standby letters of credit are deferred. The fees are then recognized in income proportionately over the life of the standby letter of credit agreement. The deferred standby letter of credit fees represent the fair value of the Company's potential obligations under the standby letter of credit guarantees. The following table summarizes the above financial instruments at the dates indicated: As of December 31 2017 2016 (Dollars in thousands) Commitments to extend credit $ 2,443,478 $ 2,227,955 Standby letters of credit $ 15,534 $ 18,190 Deferred standby letter of credit fees $ 102 $ 108 Lease Commitments The Company leases office space, space for ATM locations, and certain branch locations under noncancelable operating leases. The following is a schedule of minimum future lease payments under such leases as of December 31, 2017 : (Dollars in thousands) 2018 $ 9,023 2019 8,808 2020 7,771 2021 6,508 2022 4,437 Thereafter 8,214 Total future minimum lease commitments $ 44,761 Rent expense incurred under operating leases was approximately $8.6 million in 2017 , $8.5 million in 2016 , and $8.2 million in 2015 . Renewal options ranging from 4 months -10 years exist for several of these leases. Other Contingencies At December 31, 2017 , Rockland Trust was involved in pending lawsuits that arose in the ordinary course of business. Management has reviewed these pending lawsuits with legal counsel and has taken into consideration the view of counsel as to their outcome. In the opinion of management, the final disposition of pending lawsuits is not expected to have a material adverse effect on the Company’s financial position or results of operations. The Bank is required to maintain certain reserve requirements of vault cash and/or deposits with the Federal Reserve Bank of Boston. The amount of this reserve requirement was $35.8 million and $31.8 million at December 31, 2017 and 2016 , respectively. |
REGULATORY CAPITAL REQUIREMENTS
REGULATORY CAPITAL REQUIREMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
REGULATORY CAPITAL REQUIREMENTS | REGULATORY MATTERS Regulatory Capital Requirements The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. At December 31, 2017 the most recent notification from the Federal Deposit Insurance Corporation indicated that the Bank's capital levels met or exceeded the minimum levels to be considered "well capitalized" for bank regulatory purposes. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, Common equity Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following tables. There are no conditions or events since the notification that management believes have changed the Bank’s category. Management believes, as of December 31, 2017 and 2016 , that the Company and the Bank met all capital adequacy requirements to which they are subject. The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2017 and 2016 are also presented in the table that follows: Actual For Capital To Be Well Capitalized Amount Ratio Amount Ratio Amount Ratio December 31, 2017 (Dollars in thousands) Independent Bank Corp. Total capital (to risk weighted assets) $ 886,807 13.82 % $ 513,398 ≥ 8.0 % N/A N/A Common equity tier 1 capital (to risk weighted assets) $ 718,995 11.20 % $ 288,787 ≥ 4.5 % N/A N/A Tier 1 capital (to risk weighted assets) $ 789,992 12.31 % $ 385,049 ≥ 6.0 % N/A N/A Tier 1 capital (to average assets) $ 789,992 10.04 % $ 314,756 ≥ 4.0 % N/A N/A Rockland Trust Company Total capital (to risk weighted assets) $ 846,147 13.19 % $ 513,175 ≥ 8.0 % $ 641,469 ≥ 10.0 % Common equity tier 1 capital (to risk weighted assets) $ 784,014 12.22 % $ 288,661 ≥ 4.5 % $ 416,955 ≥ 6.5 % Tier 1 capital (to risk weighted assets) $ 784,014 12.22 % $ 384,881 ≥ 6.0 % $ 513,175 ≥ 8.0 % Tier 1 capital (to average assets) $ 784,014 9.97 % $ 314,630 ≥ 4.0 % $ 393,288 ≥ 5.0 % December 31, 2016 (Dollars in thousands) Independent Bank Corp. Total capital (to risk weighted assets) $ 824,265 13.60 % $ 484,942 ≥ 8.0 % N/A N/A Common equity tier 1 capital (to risk weighted assets) $ 656,080 10.82 % $ 272,780 ≥ 4.5 % N/A N/A Tier 1 capital (to risk weighted assets) $ 727,070 11.99 % $ 363,706 ≥ 6.0 % N/A N/A Tier 1 capital (to average assets) $ 727,070 9.77 % $ 297,748 ≥ 4.0 % N/A N/A Rockland Trust Company Total capital (to risk weighted assets) $ 788,320 13.01 % $ 484,834 ≥ 8.0 % $ 606,042 ≥ 10.0 % Common equity tier 1 capital (to risk weighted assets) $ 725,760 11.98 % $ 272,719 ≥ 4.5 % $ 393,927 ≥ 6.5 % Tier 1 capital (to risk weighted assets) $ 725,760 11.98 % $ 363,625 ≥ 6.0 % $ 484,834 ≥ 8.0 % Tier 1 capital (to average assets) $ 725,760 9.76 % $ 297,589 ≥ 4.0 % $ 371,986 ≥ 5.0 % In addition to the minimum risk-based capital requirements outlined in the table above, the Company is required to maintain a minimum capital conservation buffer, in the form of common equity, in order to avoid restrictions on capital distributions and discretionary bonuses. The required amount of the capital conservation buffer is being phased-in, beginning at 0.625% on January 1, 2016 and ultimately increasing to 2.5% on January 1, 2019. The Company's capital levels exceeded the minimum requirement plus the fully phased-in buffer of 2.5% as of December 31, 2017 . Dividend Restrictions In the ordinary course of business, the Company is dependent upon dividends from the Bank to provide funds for the payment of dividends to shareholders and to provide for other cash requirements. Banking regulations may limit the amount of dividends that may be paid. Approval by regulatory authorities is required if the effect of dividends declared would cause the regulatory capital of the Bank to fall below specified minimum levels. Approval is also required if dividends declared exceed the net profits for that year combined with the retained net profits for the preceding two years. Under the foregoing dividend restrictions and while maintaining its "well capitalized" status, dividends paid by the Bank to the Company for the year ended December 31, 2017 and 2016 totaled $46.9 million and $44.5 million , respectively. Trust Preferred Securities In accordance with the applicable accounting standard related to variable interest entities, the common stock of trusts which have issued trust preferred securities have not been included in the consolidated financial statements. At December 31, 2017 and 2016 , $71.0 million in trust preferred securities have been included in the Tier 1 capital of the Company for regulatory reporting purposes pursuant to the Federal Reserve's capital adequacy guidelines. |
PARENT COMPANY FINANCIALS ONLY
PARENT COMPANY FINANCIALS ONLY | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
PARENT COMPANY FINANCIAL STATEMENTS | PARENT COMPANY FINANCIAL STATEMENTS Condensed financial information relative to the Parent Company’s balance sheets at December 31, 2017 and 2016 and the related statements of income and cash flows for the years ended December 31, 2017 , 2016 , and 2015 are presented below. The statement of stockholders’ equity is not presented below as the parent company’s stockholders’ equity is that of the consolidated Company. BALANCE SHEETS December 31 2017 2016 (Dollars in thousands) Assets Cash(1) $ 48,131 $ 42,596 Investments in subsidiaries(2) 1,010,125 935,778 Prepaid income taxes 786 625 Deferred tax asset 96 216 Derivative instruments(1) 1,535 1,364 Total assets $ 1,060,673 $ 980,579 Liabilities and stockholders’ equity Dividends payable $ 8,786 $ 7,834 Junior subordinated debentures 73,073 73,107 Subordinated debentures 34,682 34,635 Other liabilities 323 313 Total liabilities 116,864 115,889 Stockholders’ equity 943,809 864,690 Total liabilities and stockholders’ equity $ 1,060,673 $ 980,579 (1) Entire balance eliminates in consolidation. (2) $1.0 billion and $933.6 million eliminate in consolidation at December 31, 2017 and 2016 , respectively. STATEMENTS OF INCOME Years Ended December 31 2017 2016 2015 (Dollars in thousands) Income Dividends received from subsidiaries(1) $ 47,006 $ 44,598 $ 38,153 Interest income(2) 50 98 78 Total income 47,056 44,696 38,231 Expenses Interest expense 3,995 5,901 5,769 Other expenses — — 29 Total expenses 3,995 5,901 5,798 Income before income taxes and equity in undistributed income of subsidiaries 43,061 38,795 32,433 Income tax benefit (1,523 ) (1,791 ) (2,301 ) Income of parent company 44,584 40,586 34,734 Equity in undistributed income of subsidiaries 42,620 36,062 30,226 Net income $ 87,204 $ 76,648 $ 64,960 (1) Income of $67,000 , $62,000 and $55,000 was not eliminated in consolidation for the years ended December 31, 2017 , 2016 , and 2015 , respectively. (2) Entire balance eliminated in consolidation. STATEMENTS OF CASH FLOWS Years Ended December 31 2017 2016 2015 (Dollars in thousands) Cash flows from operating activities Net income $ 87,204 $ 76,648 $ 64,960 Adjustments to reconcile net income to cash provided by operating activities Amortization (accretion) 12 (154 ) (150 ) Deferred income tax expense 51 678 3,266 Change in other assets (99 ) 423 7,488 Change in other liabilities (562 ) (5,532 ) (254 ) Equity in undistributed income of subsidiaries (42,620 ) (36,062 ) (30,226 ) Net cash provided by operating activities 43,986 36,001 45,084 Cash flows used in investing activities Cash paid for acquisitions, net of cash acquired (1) (4,834 ) (950 ) (51,680 ) Net cash used in investing activities (4,834 ) (950 ) (51,680 ) Cash flows used in financing activities Restricted stock awards issued, net of awards surrendered (1,422 ) (696 ) (657 ) Net proceeds from exercise of stock options 214 201 1,367 Proceeds from shares issued under the direct stock purchase plan 1,636 2,323 2,695 Common dividends paid (34,045 ) (29,711 ) (26,172 ) Net cash used in financing activities (33,617 ) (27,883 ) (22,767 ) Net increase (decrease) in cash and cash equivalents 5,535 7,168 (29,363 ) Cash and cash equivalents at the beginning of the year 42,596 35,428 64,791 Cash and cash equivalents at the end of the year $ 48,131 $ 42,596 $ 35,428 (1) The majority of the net assets acquired at the parent company represented each of the acquired companies' investments in their wholly owned subsidiaries, which were eliminated in consolidation at December 31, 2017 , 2016 , and 2015 , respectively. |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) First Quarter Second Quarter Third Quarter Fourth Quarter 2017 2016 2017 2016 2017 2016 2017 2016 (Dollars in thousands, except per share data) Interest income $ 64,407 $ 59,741 $ 68,133 $ 61,160 $ 71,778 $ 62,308 $ 72,876 $ 63,428 Interest expense 4,207 4,850 4,378 4,627 4,705 4,640 5,044 4,676 Net interest income 60,200 54,891 63,755 56,533 67,073 57,668 67,832 58,752 Provision for loan losses 600 525 1,050 600 — 950 1,300 4,000 Total noninterest income 18,912 19,155 21,398 21,095 20,770 20,416 21,914 21,762 Total noninterest expenses 48,773 46,482 52,809 47,146 51,310 46,857 51,467 51,637 Provision for income taxes 9,014 8,428 10,731 9,508 12,681 9,793 14,915 7,698 Net income $ 20,725 $ 18,611 $ 20,563 $ 20,374 $ 23,852 $ 20,484 $ 22,064 $ 17,179 Basic earnings per share $ 0.77 $ 0.71 $ 0.75 $ 0.77 $ 0.87 $ 0.78 $ 0.80 $ 0.64 Diluted earnings per share $ 0.76 $ 0.71 $ 0.75 $ 0.77 $ 0.87 $ 0.78 $ 0.80 $ 0.64 Weighted average common shares (basic) 27,029,640 26,275,323 27,257,799 26,304,129 27,436,792 26,324,316 27,445,739 26,710,029 Common stock equivalents 81,283 43,409 74,497 47,885 76,307 53,072 77,615 60,022 Weighted average common shares (diluted) 27,110,923 26,318,732 27,332,296 26,352,014 27,513,099 26,377,388 27,523,354 26,770,051 Unusual or infrequently occurring items Items within noninterest expense Loss on extinguishment of debt $ — $ 437 $ — $ — $ — $ — $ — $ — Merger and acquisition expense 484 334 2,909 206 — 151 — 4,764 Total $ 484 $ 771 $ 2,909 $ 206 $ — $ 151 $ — $ 4,764 Items within provision for income taxes 2017 Tax Act: revaluation of net deferred tax assets $ — $ — $ — $ — $ — $ — $ 1,895 $ — 2017 Tax Act: revaluation of LIHTC investments $ — $ — $ — $ — $ — $ — $ 466 $ — Total $ — $ — $ — $ — $ — $ — $ 2,361 $ — |
TRANSACTIONS WITH RELATED PARTI
TRANSACTIONS WITH RELATED PARTIES (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | TRANSACTIONS WITH RELATED PARTIES Certain directors and officers (including their affiliates, certain family members and entities in which they are principal owners) of the Company are customers of and have had, and are expected to have, transactions with the Company, within the ordinary course of business. These transactions include, but are not limited to, lending activities, deposit services, investment management, and property lease commitments. In the opinion of management, such transactions are consistent with prudent banking practices and are within applicable banking regulations. Further details relating to certain related party transactions are outlined below: Lending Activities The following information represents annual activity of loans to related parties for the periods indicated: 2017 2016 (Dollars in thousands) Principal balance of loans outstanding at beginning of year $ 22,795 $ 24,653 Loan advances (1) 36,800 1,718 Loan payments/payoffs (7,137 ) (3,576 ) Principal balance of loans outstanding at end of year $ 52,458 $ 22,795 (1) Includes $31.3 million of loans associated with a newly appointed director during the year, which represent the outstanding loan balances at the effective date of appointment. At December 31, 2017 and 2016 , there were no loans to related parties which were past due, on nonaccrual status or that had been restructured as part of a troubled debt restructuring. Deposits At December 31, 2017 and 2016 , the amount of deposit balances of related parties totaled $18.3 million and $14.7 million , respectively. Lease Commitments There were no leases with related parties during the years ended December 31, 2017 , 2016 and 2015 . |
SUMMARY OF SIGNIFICANT ACCOUN30
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
PRINCIPLES OF CONSOLIDATION | The consolidated financial statements include the accounts of the Company, the Bank and other wholly-owned subsidiaries, except subsidiaries that are not deemed necessary to be consolidated. All significant intercompany balances and transactions have been eliminated in consolidation. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity under GAAP. Voting interest entities are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. The Company would consolidate voting interest entities in which it has all, or at least a majority of, the voting interest. As defined in applicable accounting standards, variable interest entities (“VIEs”) are entities that lack one or more of the characteristics of a voting interest entity. A controlling financial interest in a VIE is present when the Company has both the power and ability to direct the activities of the VIE that most significantly impact the VIE's economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The Company also owns the common stock of various trusts which have issued trust preferred securities. These trusts are VIEs in which the Company is not the primary beneficiary and, therefore, are not consolidated. The trust's only assets are junior subordinated debentures issued by the Company, which were acquired by the trust using the proceeds from the issuance of the trust preferred securities and common stock. The junior subordinated debentures are included in long-term debt and the Company’s equity interest in the trust is included in other assets in the accompanying Consolidated Balance Sheets. Interest expense on the junior subordinated debentures is reported in interest expense on long-term debt in the accompanying Consolidated Statements of Income. |
RECLASSIFICATION | Reclassification Certain previously reported amounts have been reclassified to conform to the current year’s presentation. |
USE OF ESTIMATES | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could vary from these estimates. Material estimates that are particularly susceptible to significant changes in the near-term relate to the determination of the allowance for loan losses, income taxes, valuation and potential impairment of investment securities, other-than-temporary impairment (“OTTI”) of certain investment securities, as well as valuation of goodwill and other intangibles and their respective analyses of impairment. |
SIGNIFICANT CONCENTRATIONS OF CREDIT RISK | Significant Concentrations of Credit Risk The vast majority of the Bank’s lending activities are conducted in the Commonwealth of Massachusetts and Rhode Island. The Bank originates commercial and industrial loans, commercial and residential real estate loans, including construction loans, small business loans, home equity loans, and other consumer loans for its portfolio. The Bank considers a concentration of credit to a particular industry to exist when the aggregate credit exposure which includes direct, indirect or contingent obligations to a borrower, an affiliated group of borrowers or a nonaffiliated group of borrowers engaged in one industry, exceeds 10% of the Bank’s loan portfolio. Loans originated by the Bank to lessors of nonresidential buildings represented 15.4% of the total loan portfolio at both December 31, 2017 and 2016 , respectively. Within this concentration category, the Company believes it is well diversified among collateral property types and tenant industries. |
CASH AND CASH EQUIVALENTS | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents may include cash on hand, amounts due from banks, inclusive of interest-earning deposits held at banks, and federal funds sold. Generally, federal funds are sold for up to two week periods. |
SECURITIES | Investment securities are classified at the time of purchase as “available for sale,” “held to maturity,” or “trading.” Classification is constantly re-evaluated for consistency with corporate goals and objectives. Trading securities are recorded at fair value with subsequent changes in fair value recorded in earnings. Debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. Securities not classified as held to maturity or trading, including equity securities with readily determinable fair values, are classified as “available for sale” and recorded at fair value, with changes in fair value excluded from earnings and reported in other comprehensive income, net of related tax. Purchase premiums and discounts are recognized in interest income, using the interest method, to arrive at periodic interest income at a constant effective yield, thereby reflecting the securities market yield. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Declines in the fair value of held to maturity and available for sale securities below their amortized cost deemed to be OTTI are written down to fair value as determined by a cash flow analysis. To the extent the estimated cash flows do not support the amortized cost, the deficiency is considered to be due to credit loss and recognized in earnings. Unless the Company intends to sell the security, or if it is more likely than not that the Company will be required to sell the debt security before its anticipated recovery, the remainder of the OTTI charge is considered to be due to other factors, such as liquidity or interest rates, and thus is not recognized in earnings, but rather through other comprehensive income, net of related tax. The Company evaluates individual securities that have fair values below cost for six months or longer, or for a shorter period of time if considered appropriate by management, to determine if the decline in fair value is other-than-temporary. Consideration is given to the obligor of the security, whether the security is guaranteed, whether there is a projected adverse change in cash flows, the liquidity of the security, the type of security, the capital position of security issuers, and payment history of the security, amongst other factors when evaluating such securities. |
LOANS HELD FOR SALE | Loans Held for Sale The Bank primarily classifies new residential real estate mortgage loans as held for sale based on intent, which is determined when loans are underwritten. Residential real estate mortgage loans not designated as held for sale are retained based upon available liquidity, for interest rate risk management and other business purposes. The Company has elected the fair value option to account for originated closed loans intended for sale. Accordingly, changes in fair value relating to loans intended for sale are recorded in earnings and are offset by changes in fair value relating to interest rate lock commitments and forward sales commitments. Gains and losses on residential loan sales (sales proceeds minus carrying amount) are recorded in mortgage banking income. Upfront costs and fees related to items for which the fair value option is elected are recognized in earnings as incurred and are not deferred. |
LOANS | Loans Loans are carried at the principal amounts outstanding, or amortized acquired fair value in the case of acquired loans, adjusted by partial charge-offs and net of deferred loan costs or fees. For originated loans, loan fees and certain direct origination costs are deferred and amortized into interest income over the expected term of the loan using the level-yield method. When a loan is paid off, the unamortized portion is recognized in interest income. Interest income on loans is accrued based upon the daily principal amount outstanding except for loans on nonaccrual status. For acquired loans which did not show signs of credit deterioration at acquisition, interest income is also accrued based upon the daily principal amount outstanding and is then further adjusted by the accretion of any discount or amortization of any premium associated with the loan. As a general rule, loans more than 90 days past due with respect to principal or interest are classified as nonaccrual loans, or sooner if management considers such action to be prudent. However, loans that are more than 90 days past due may be kept on an accruing status if the loan is well secured and in the process of collection. The Company may also put a junior lien mortgage on nonaccrual status as a result of delinquency with respect to the first position, which is held by the Bank or by another financial institution, while the junior lien is currently performing. Income accruals are suspended on all nonaccrual loans and all previously accrued and uncollected interest is reversed against current income. A loan remains on nonaccrual status until it becomes current with respect to principal and interest (and in certain instances remains current for up to six months), the loan is liquidated, or when the loan is determined to be uncollectible and is charged-off against the allowance for loan losses. When doubt exists as to the collectability of a loan, any payments received are applied to reduce the recorded investment in the asset to the extent necessary to eliminate such doubt. For all loan portfolios, a charge-off occurs when the Company determines that a specific loan, or portion thereof, is uncollectible. This determination is made based on management's review of specific facts and circumstances of the individual loan, including assessing the viability of the customer’s business or project as a going concern, the expected cash flows to repay the loan, the value of the collateral and the ability and willingness of any guarantors to perform. In cases where a borrower experiences financial difficulties and the Company makes certain concessionary modifications to contractual terms, the loan is classified as a troubled debt restructuring (“TDR”). Modifications may include adjustments to interest rates, extensions of maturity, consumer loans where the borrower's obligations have been effectively discharged through Chapter 7 Bankruptcy and the borrower has not reaffirmed the debt to the Bank, and other actions intended to minimize economic loss and avoid foreclosure or repossession of collateral. The recorded investment of loans classified as TDRs is adjusted to reflect the changes in value, if any, resulting from the granting of a concession. Nonaccrual loans that are restructured remain on nonaccrual for a period of six months to demonstrate that the borrower can meet the restructured terms. If the restructured loan is on accrual status prior to being modified, it is reviewed to determine if the modified loan should remain on accrual status. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan is classified as a nonaccrual loan. Loans classified as TDRs remain classified as such for the life of the loan, except in limited circumstances, when it is determined that the borrower is performing under the modified terms and the restructuring agreement specified an interest rate greater than or equal to an acceptable market rate for a comparable new loan at the time of the restructuring |
ACQUIRED LOANS | Acquired loans All acquired loans are recorded at fair value with no carryover of the allowance for loan losses. At acquisition, loans are also reviewed to determine if the loan has evidence of deterioration in credit quality and to review if it is probable, at acquisition, that all contractually required payments will not be collected. Such loans are deemed to be purchased credit impaired ("PCI") loans. Under the accounting model for PCI loans, the excess of cash flows expected to be collected over the carrying amount of the loans, referred to as the "accretable yield", is accreted into interest income over the life of the loans using the effective yield method. Accordingly, PCI loans are not subject to classification as nonaccrual in the same manner as originated loans. Rather, acquired loans are generally considered to be accruing loans because their interest income relates to the accretable yield recognized and not to contractual interest payments at the loan level. The difference between contractually required principal and interest payments and the cash flows expected to be collected, referred to as the "nonaccretable difference", includes estimates of both the impact of prepayments and future credit losses expected to be incurred over the life of the loans. The estimate of cash flows expected to be collected is regularly re-assessed subsequent to acquisition. These re-assessments involve updates, as necessary, of the key assumptions and estimates used in the initial estimate of fair value. Generally speaking, expected cash flows are affected by: • Changes in the expected principal and interest payments over the estimated life - Changes in expected cash flows may be driven by the credit outlook and actions taken with borrowers. Changes in expected future cash flows resulting from loan modifications are included in the assessment of expected cash flows. • Change in prepayment assumptions - Prepayments affect the estimated life of the loans, which may change the amount of interest income expected to be collected. • Change in interest rate indices for variable rate loans - Expected future cash flows are based, as applicable, on the variable rates in effect at the time of the assessment of expected cash flows. A decrease in expected cash flows in subsequent periods may indicate that the loan is impaired which would likely require the recognition of a charge-off against the allowance for loan losses or an establishment of a specific reserve. An increase in expected cash flows in subsequent periods serves, first, to reduce any previously established specific reserve by the increase in the present value of cash flows expected to be collected. Any increase above the previously established specific reserve results in a recalculation of the amount of accretable yield for the loan. The adjustment of accretable yield due to an increase in expected cash flows is accounted for as a change in estimate. The additional cash flows expected to be collected are reclassified from the nonaccretable difference to the accretable yield, and the amount of periodic accretion is adjusted accordingly over the remaining life of the loans. A PCI loan may be resolved either through receipt of payment (in full or in part) from the borrower, the sale of the loan to a third party, or foreclosure of the collateral. In the event of a sale of the loan, a gain or loss on sale would be recognized and reported within noninterest income based on the difference between the sales proceeds and the carrying amount of the loan. For PCI loans accounted for on an individual loan basis and resolved directly with the borrower, any amount received from resolution in excess of the carrying amount of the loan is recognized and reported within interest income. A refinancing or modification of a PCI loan accounted for individually is assessed to determine whether the modification represents a TDR. If the loan is considered to be a TDR, it will be included in the total impaired loans reported by the Company. The loan will continue to recognize interest income based upon the excess of cash flows expected to be collected over the carrying amount of the loan. |
ALLOWANCE FOR LOAN LOSSES | Allowance for Loan Losses The allowance for loan losses is established based upon the level of estimated probable losses in the current loan portfolio. Loan losses are charged against the allowance when management believes the collectability of a loan balance is doubtful. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is allocated to loan types using both a formula-based approach applied to groups of loans and an analysis of certain individual loans for impairment. The formula-based approach emphasizes loss factors derived from actual historical portfolio loss rates, which are combined with an assessment of certain qualitative factors to determine the allowance amounts allocated to the various loan categories. Allowance amounts are determined based on an estimate of the historical average annual percentage rate of loan loss for each loan category, an estimate of the incurred loss emergence and confirmation period for each loan category, and certain qualitative risk factors considered in the computation of the allowance for loan losses. The qualitative risk factors impacting the inherent risk of loss within the portfolio include the following: • National and local economic and business conditions • Level and trend of delinquencies • Level and trend of charge-offs and recoveries • Trends in volume and terms of loans • Risk selection, lending policy and underwriting standards • Experience and depth of management • Banking industry conditions and other external factors • Concentration risk The formula-based approach evaluates groups of loans with common characteristics, which consist of similar loan types with similar terms and conditions, to determine the appropriate allocation within each portfolio section. This approach incorporates qualitative adjustments based upon management’s assessment of various market and portfolio specific risk factors into its formula-based estimate. Due to the imprecise nature of the loan loss estimation process and ever changing conditions, the qualitative risk attributes may not adequately capture amounts of incurred loss in the formula-based loan loss components used to determine the Bank’s analysis of the appropriateness of the allowance for loan losses. The Bank evaluates certain loans within the commercial and industrial, commercial real estate, commercial construction and small business portfolios individually for specific impairment. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, contractual interest rates and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Loans are selected for evaluation based upon a change in internal risk rating, occurrence of delinquency, loan classification, troubled debt restructuring or nonaccrual status. A specific allowance amount is allocated to an individual loan when such loan has been deemed impaired and when the amount of the probable loss is able to be estimated. Estimates of loss may be determined by the present value of anticipated future cash flows, the loan’s observable fair market value, or the fair value of the collateral, if the loan is collateral dependent. However, for collateral dependent loans, the amount of the recorded investment in a loan that exceeds the fair value of the collateral less costs to sell is charged-off against the allowance for loan losses in lieu of an allocation of a specific allowance amount when such an amount has been identified definitively as uncollectible. Large groups of small-balance homogeneous loans such as the residential real estate, residential construction, home equity and other consumer portfolios are collectively evaluated for impairment. As such, the Bank does not typically identify individual loans within these groupings as impaired loans for impairment evaluation and disclosure. However, the Bank evaluates all TDRs for impairment on an individual loan basis regardless of loan type. In the ordinary course of business, the Bank enters into commitments to extend credit, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded in the financial statements when they become payable. The credit risk associated with these commitments is evaluated in a manner similar to the allowance for loan losses. The reserve for unfunded lending commitments is included in other liabilities in the balance sheet. At December 31, 2017 and 2016 , the reserve for unfunded loan commitments was $972,000 and $954,000 , respectively. |
Transfers and Servicing of Financial Assets, Transfers of Financial Assets, Financings, Policy [Policy Text Block] | Transfers and Servicing of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Loans held for sale are generally sold with servicing rights released, however if rights are retained, servicing assets are recognized as separate assets. Servicing rights are originally recorded at fair value within other assets, but subsequently are amortized in proportion to and over the period of estimated net servicing income, and are assessed for impairment at each reporting date. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds, default rates and losses. Impairment is determined by stratifying the rights based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance, to the extent that fair value is less than the capitalized amount. If the Company later determines that all or a portion of the impairment no longer exists, a reduction of the allowance may be recorded as an increase to income. Servicing fee income is recorded for fees earned for servicing loans for investors. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan, and are recorded as income when earned. The amortization of mortgage servicing rights is recorded as a reduction of loan servicing fee income. |
FEDERAL HOME LOAN BANK STOCK | Federal Home Loan Bank Stock The Company, as a member of the Federal Home Loan Bank (“FHLB”) of Boston, is required to maintain an investment in capital stock of the FHLB. Based on redemption provisions, the stock has no quoted market value and is carried at cost. The Company continually reviews its investment to determine if OTTI exists. The Company reviews recent public filings, rating agency analysis and other factors, when making its determination. |
BANK PREMISES AND EQUIPMENT | Bank Premises and Equipment Land is carried at cost. Bank premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line convention method over the estimated useful lives of the assets. Leasehold improvements are amortized over the shorter of the lease terms or the estimated useful lives of the improvements. Expected terms include lease option periods to the extent that the exercise of such options is reasonably assured, not to exceed fifteen years. |
GOODWILL AND IDENTIABLE INTANGIBLE ASSETS | Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the net fair value of acquired businesses. Goodwill is not amortized and is assigned to one reporting unit. Goodwill is evaluated for impairment at least annually, or more often if warranted, using a combined qualitative and quantitative impairment approach. The initial qualitative approach assesses whether the existence of events or circumstances led to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, the Company determines it is more likely than not that the fair value is less than carrying value, the two step quantitative impairment test is performed. Step one of the quantitative impairment test compares book value to the fair value of the reporting unit. If step one is failed, a detailed step two analysis is performed, which involves measuring the excess of the fair value of the reporting unit, as determined in step one, over the aggregate fair value of the individual assets, liabilities, and identifiable intangibles as if the reporting unit was being acquired in a business combination. Other intangible assets subject to amortization consist of core deposit intangibles, noncompete agreements, customer lists and market-based favorable or unfavorable lease positions at time of acquisition, and are amortized over the estimated lives of the intangibles using a method that approximates the amount of economic benefits that are realized by the Company. Other intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The range of useful lives is as follows: Core deposit intangibles 10 years Noncompete agreements 1-3 years Leases 3-29 years The determination of which intangible assets have finite lives is subjective, as is the determination of the amortization period for such intangible assets. |
IMPAIRMENT OF LONG-LIVED ASSETS OTHER THAN GOODWILL | Impairment of Long-Lived Assets Other Than Goodwill The Company reviews long-lived assets, including premises and equipment, for impairment whenever events or changes in business circumstances indicate that the remaining useful life may warrant revision or that the carrying amount of the long-lived asset may not be fully recoverable. The Company performs undiscounted cash flow analysis to determine if impairment exists. If impairment is determined to exist, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. |
CASH SURRENDER VALUE OF LIFE INSURANCE POLICIES | Cash Surrender Value of Life Insurance Policies Increases in the cash surrender value (“CSV”) of life insurance policies, as well as benefits received net of any CSV, are recorded in other noninterest income, and are not subject to income taxes. The CSV of the policies is recorded as an asset of the Bank, with liabilities recognized for any split dollar arrangements associated with the policies. The Company reviews the financial strength of the insurance carriers prior to the purchase of life insurance policies and no less than annually thereafter. Regulatory requirements limit the total amount of CSV to be held with any individual carrier to 15% of Tier 1 capital (as defined for regulatory purposes) and the total CSV of all life insurance policies is limited to 25% of Tier 1 capital. |
OTHER REAL ESTATE OWNED AND OTHER FORECLOSED ASSETS | and Other Foreclosed Assets Real estate properties and other assets, which have served as collateral to secure loans, are held for sale and are initially recorded at fair value less estimated costs to sell at the date control is established, resulting in a new cost basis. The amount by which the recorded investment in the loan exceeds the fair value (net of estimated costs to sell) of the foreclosed asset is charged to the allowance for loan losses. Subsequent declines in the fair value of the foreclosed asset below the new cost basis are recorded through the use of a valuation allowance. Subsequent increases in the fair value are recorded as reductions in the valuation allowance, but not below zero. Upon a sale of a foreclosed asset, any excess of the carrying value over the sale proceeds is recognized as a loss on sale. Any excess of sale proceeds over the carrying value of the foreclosed asset is first applied as a recovery to the valuation allowance, if any, with the remainder being recognized as a gain on sale. Operating expenses and changes in the valuation allowance relating to foreclosed assets are included in other noninterest expense. |
Repurchase and Resale Agreements Policy [Policy Text Block] | Customer Repurchase Agreements In a security repurchase agreement transaction, the Company will generally sell a security, agreeing to repurchase either the same or substantially identical security on a specified later date, at a greater price than the original sales price. The difference between the sale price and purchase price is the cost of the proceeds, which is recorded as interest expense. The securities underlying the agreements are delivered to counterparties as security for the repurchase obligations. Since the securities are treated as collateral and the agreement does not qualify for a full transfer of effective control, the transactions do not meet the criteria to be classified as a sale, and are therefore considered a secured borrowing transaction for accounting purposes. |
DERIVATIVES | Derivatives Derivative instruments are carried at fair value in the Company’s financial statements. The accounting for changes in the fair value of a derivative instrument is determined by whether it has been designated and qualifies as part of a hedging relationship, and further, by the type of hedging relationship. At the inception of a hedge, the Company documents certain items, including but not limited to the following: the relationship between hedging instruments and hedged items, the Company's risk management objectives, hedging strategies, and the evaluation of hedge transaction effectiveness. Documentation includes linking all derivatives designated as fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific forecasted transactions. For those derivative instruments that are designated and qualify for special hedge accounting, the Company designates the hedging instrument, based upon the exposure being hedged, as either a fair value hedge or a cash flow hedge. For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income, net of related tax, and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item (i.e., the ineffective portion), if any, is recognized in current earnings during the period. For derivative instruments designated and qualifying as a fair value hedge (i.e., hedging the exposure to changes in the fair value of an asset or liability or an identified portion thereof that is attributable to the hedged risk), the gain or loss on the derivative instrument, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, are recognized in current earnings during the period of the change in fair values. Hedge accounting is discontinued prospectively when (1) a derivative is no longer highly effective in offsetting changes in the fair value or cash flow of a hedged item, (2) a derivative expires or is settled, (3) it is no longer likely that a forecasted transaction associated with the hedge will occur, or (4) it is determined that designation of a derivative as a hedge is no longer appropriate. To the extent the Company enters into new or re-designates existing hedging relationships, it is the Company's policy to include the Overnight Index Swap Rate in the spectrum of available benchmark interest rates for hedge accounting. For derivative instruments not designated as hedging instruments, such as loan level derivatives, foreign exchange contracts and mortgage derivatives, changes in fair value are recognized in other noninterest income during the period of change. |
RETIREMENT PLANS | Retirement Plans The Company has various retirement plans in place for current and former employees, including postretirement benefit plans, supplemental executive retirement plans, frozen multiemployer pension plans, deferred compensation plans, as well as other benefits. The postretirement benefit plans and the supplemental executive retirement plans are unfunded and therefore have no plan assets. The actuarial cost method used to compute the benefit liabilities and related expense is the projected unit credit method. The projected benefit obligation is principally determined based on the present value of the projected benefit distributions at an assumed discount rate. The discount rate which is utilized is based on the investment yield of high quality corporate bonds available in the market place with maturities approximately equal to projected cash flows of future benefit payments as of the measurement date. Periodic benefit expense (or income) includes service costs and interest costs based on the assumed discount rate, amortization of prior service costs due to plan amendments and amortization of actuarial gains and losses. The amortization of actuarial gains and losses is determined using the 10% corridor minimum amortization approach and is taken over the average remaining future working lifetime of the plan participants. The underfunded status of the plans is recorded as a liability on the balance sheet. The multiemployer pension plans' assets are determined based on fair value, generally representing observable market prices. The actuarial cost method used to compute the pension liabilities and related expense is the unit credit method. The pension expense is equal to the plan contribution requirement of the Company for the plan year. The Director Deferred Compensation and 401(k) Restoration plans allow directors and employees to invest their funds within a rabbi trust, including both Company stock and other investment alternatives offered by the plan. The plans do not permit diversification after initial election and therefore elections made to defer into Company stock result in both the investment and obligation recognized within Stockholders' Equity. Alternatively, investments not in Company stock are included in Securities-trading, with the correlating obligation classified as a liability. The Company has obligations with various individuals related to certain post-retirement benefits. The obligations are based on the individual's service through retirement, with the associated cost recognized over the requisite service period. The accrual methodology results in an accrued amount at the full eligibility date equal to the then present value of all of the future benefits expected to be paid. |
STOCK-BASED COMPENSATION | Stock-Based Compensation The Company recognizes stock-based compensation based on the grant-date fair value of the award, with no adjustment for estimated forfeitures, as forfeitures are recognized when they occur. For restricted stock awards and units, the Company recognizes compensation expense ratably over the vesting period for the fair value of the award, measured at the grant date. For stock option awards, the Company values awards granted using the Black-Scholes option-pricing model. The Company recognizes compensation expense for these awards on a straight-line basis over the requisite service period for the entire award (straight-line attribution method), ensuring that the amount of compensation cost recognized at any date at least equals the portion of the grant-date fair value of the award that is vested at that time. |
INCOME TAXES | Income Taxes Deferred income tax assets and liabilities are determined using the asset and liability (or balance sheet) method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. If current available information raises doubt as to the realization of the deferred tax assets, a valuation allowance is established. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in enacted tax rates is recognized in income in the period that includes the enactment date. Income taxes are allocated to each entity in the consolidated group based on its share of taxable income. Management exercises significant judgment in evaluating the amount and timing of recognition of the resulting tax liabilities and assets, including projections of future taxable income. Additionally, a liability for unrecognized tax benefits is recorded for uncertain tax positions taken by the Company on its tax returns for which there is less than a 50% likelihood of being recognized upon a tax examination. Tax credits generated from the New Markets Tax Credit program are reflected in earnings when realized for federal income tax purposes. |
Low Income Housing Tax Credits Policy Text Block [Policy Text Block] | Low Income Housing Tax Credits The Company accounts for its investments in qualified affordable housing projects using the proportional amortization method. Under the proportional amortization method the Company amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received, and recognizes the net investment benefit as a component of income tax expense (benefit). |
ASSETS UNDER ADMININSTRATION | Assets Under Administration Assets held in a fiduciary or agency capacity for customers are not included in the accompanying consolidated balance sheet, as such assets are not assets of the Company. Revenue from administrative and management activities associated with these assets is recorded on an accrual basis. |
Extinguishment of Debt [Policy Text Block] | Extinguishment of Debt Upon extinguishment of an outstanding debt, the Company records the difference between the exit price and the net carrying amount of the debt as a gain or loss on the extinguishment. The gain or loss is recorded as a component of other noninterest income or other noninterest expense, respectively. |
EARNINGS PER SHARE | Earnings Per Share Basic earnings per share is calculated using the two-class method. The two-class method is an earnings allocation formula under which earnings per share is calculated from common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings distributed and undistributed, are allocated to participating securities and common shares based on their respective rights to receive dividends. Unvested share-based payment awards that contain nonforfeitable rights to dividends are considered participating securities (i.e. unvested time-vested restricted stock), not subject to performance based measures. Basic earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding (inclusive of participating securities). Diluted earnings per share have been calculated in a manner similar to that of basic earnings per share except that the weighted average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares (such as those resulting from the exercise of stock options or the attainment of performance measures) were issued during the period, computed using the treasury stock method. |
COMPREHENSIVE INCOME | Comprehensive Income Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale, unrealized losses related to factors other than credit on debt securities, if applicable, unrealized gains and losses on cash flow hedges, deferred gains on hedge accounting transactions, and changes in the funded status of the Company’s postretirement and supplemental retirement plans. |
FAIR VALUE MEASUREMENTS | Fair Value Measurements In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and the Company’s creditworthiness, among other things, as well as unobservable parameters. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Standards Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 718 "Compensation - Stock Compensation" Update No. 2016-09. Update No. 2016-09 was issued in March 2016 and affects all entities that issue share-based awards to their employees. This update was issued as part of the FASB’s simplification initiative. The areas for simplification in this update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this update are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company adopted this standard effective January 1, 2017. Upon adoption, the Company elected to no longer estimate forfeitures on stock compensation and instead recognize forfeitures when they occur. The election required a cumulative effect adjustment to retained earnings which did not materially impact the Company's consolidated financial position. Additionally, the disclosure requirements of this standard will be applied on a prospective basis. FASB ASC Topic 230 "Statement of Cash Flows" Update No. 2016-15. Update No. 2016-15 was issued in August 2016 to reduce diversity of practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments in this update provide guidance on the following eight specific cash flow issues; (1) debt prepayment or debt extinguishment costs, (2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement of insurance claims, (5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (6) distributions received from equity method investees, (7) beneficial interests in securitization transactions, and (8) separately identifiable cash flows and application of the predominance principle. The amendments in this topic will provide guidance for these eight issues, thereby reducing the current and potential future diversity in practice. The Company adopted this standard effective January 1, 2018 and the impact on the Company's consolidated financial position was immaterial. FASB ASC Topic 220 "Reporting Comprehensive Income" Update No. 2018-02. Updated No. 2018-02 was issued in February 2018 to allow a reclassification from accumulated other comprehensive income to retained earnings for amounts considered to be stranded in other comprehensive income as are result of the Tax Cuts and Jobs Act ("Tax Act"). These amendments eliminate these stranded tax effects and will improve the usefulness of information reported to financial statement users. However, because these amendments only relate to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The amendments in this update also require certain disclosures about stranded tax effects. The amendments in this update are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. The Company adopted this standard effective January 1, 2018. The adoption of this standard did not have a material impact on the Company's consolidated financial position. FASB ASC Topic 815 "Derivatives and Hedging" Update No. 2017-12. Update No. 2017-12 was issued in August 2017 to better align an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. To meet that objective, the amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The amendments in this update are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. The Company adopted this standard effective January 1, 2018. The adoption of this standard did not have a material impact on the Company's existing hedging relationships. FASB ASC Topic 718 "Compensation - Stock Compensation" Update No. 2017-09 . Update No. 2017-09 was issued in May 2017 to provide clarity and reduce diversity in practice when applying guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of a modification unless all the following are met: (1) The fair value (or calculated value or intrinsic value, if such an alternative measurement method is used) of the modified award is the same as the fair value of the original award immediately before the original award is modified. If the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification. (2) The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified. (3) The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification accounting under the amendments in this update. The amendments in this update are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued and all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this update should be applied prospectively to an award modified on or after the adoption date. Upon adoption of this standard on January 1, 2018, there was no material impact on the Company's consolidated financial position. FASB ASC Topic 310-20 "Receivables - Nonrefundable fees and Other Costs" Update No. 2017-08. Update No. 2017-08 was issued in March 2017 to shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. The Company early adopted this standard effective January 1, 2017 and the impact on the Company's consolidated financial position was immaterial. FASB ASC Topic 715 "Compensation - Retirement Benefits" Update No. 2017-07 . Update No. 2017-07 was issued in March 2017 to improve the presentation of net periodic pension cost and net periodic postretirement benefit costs. This update requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If a separate line item or items are used to present the other components of net benefit cost, that line item or items must be appropriately described. If a separate line item or items are not used, the line item or items used in the income statement to present the other components of net benefit cost must be disclosed. The amendments in this update also allow only the service cost component to be eligible for capitalization when applicable. The amendments in this update are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted as of the beginning of an annual period for which the financial statements (interim or annual) have not been issued or made available for issuance. That is, early adoption should be within the first interim period if an employer issues interim financial statements. Disclosures of the nature of and reason for the change in accounting principle are required in the first interim and annual periods of adoption. Upon adoption of this standard on January 1, 2018, there was no material impact on the Company's consolidated financial position. FASB ASC Subtopic 610-20 "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets" Update No. 2017-05. Update No. 2017-05 was issued in February 2017 to clarify that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. The amendments define the term in substance nonfinancial asset, in part, as a financial asset promised to a counterparty in a contract if substantially all of the fair value of the assets (recognized and unrecognized) that are promised to the counterparty in the contract is concentrated in nonfinancial assets. The amendments in this update also clarify that nonfinancial assets within the scope of Subtopic 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty. A contract that includes the transfer of ownership interests in one or more consolidated subsidiaries is within the scope of Subtopic 610-20 if substantially all of the fair value of the assets that are promised to the counterparty in a contract is concentrated in nonfinancial assets. For purposes of that evaluation, the amendments require an entity to evaluate the underlying assets in consolidated subsidiaries to determine whether those assets are within the scope of Subtopic 610-20. The amendments are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. The guidance may be applied earlier but only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods in that reporting period. Upon adoption of this standard on January 1, 2018, there was no material impact on the Company's consolidated financial position. FASB ASC Topic 350 "Intangibles - Goodwill and Other " Update No. 2017-04. Update No. 2017-04 was issued in January 2017 to simplify the subsequent measurement of goodwill, by eliminating Step 2 for the goodwill impairment test. The amendments in this update modify the concept of impairment from the condition that exists when the carrying amount of a reporting unit exceeds its fair value. An entity is no longer required to determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit has been acquired in a business combination. An entity should apply the amendments in this update on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. That disclosure should be provided in the first annual period and in the interim period within the first annual period when the entity initially adopts the amendments in this update. A public business entity that is a U.S. Securities and Exchange Commission (SEC)filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this standard is not expected to have a material impact on the Company's consolidated financial position. FASB ASC Topic 606 "Revenue from Contracts with Customers" Update No. 2014-09. Update No. 2014-09 was issued in May 2014 to address the previous revenue recognition requirements in GAAP that differ from those in International Financial Reporting Standards (IFRS). Accordingly, the FASB and the International Accounting Standards Board (IASB) initiated a joint project to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS. The largely converged revenue recognition standards will supersede virtually all revenue recognition guidance in GAAP and IFRS. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Since the issuance of Update 2014-09, the FASB has finalized various amendments to the standard as summarized below: FASB ASC Topic 606 "Revenue from Contracts with Customers" Update No. 2016-20 FASB ASC Topic 606 "Revenue from Contracts with Customers" Update No. 2016-12 FASB ASC Topic 606 "Revenue from Contracts with Customers" Update No. 2016-10 FASB ASC Topic 606 "Revenue from Contracts with Customers" Update No. 2016-08 . FASB ASC Topic 606 "Revenue from Contracts with Customers" Update No. 2015-14. The amendments in Update 2016-20 make minor corrections or minor improvements to the codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. Through Updates 2016-12, 2016-10 and 2016-08, the FASB amended its new revenue guidance on licenses of intellectual property, identification of performance obligations, collectability, noncash consideration and the presentation of sales and other similar taxes. The FASB also clarified the definition of a completed contract at transition and added a practical expedient to ease transition for contracts that were modified prior to adoption. The FASB also amended the new revenue recognition guidance on determining whether an entity is a principal or an agent in an arrangement which affects whether revenue should be reported gross or net. Following the issuance of Update 2015-14, Update 2014-09, as amended, is effective for the Company for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. A full or modified retrospective transition method is required. The Company's revenue is comprised of net interest income on financial assets and liabilities, and noninterest income. Interest income, mortgage banking income, gain on sale of equity securities, increase in cash surrender value of life insurance policies and loan level derivative income are accounted for under other U.S. GAAP standards, and are therefore out of scope of the ASC 606 revenue standard. Deposit account fees, interchange and ATM fees, investment management and certain categories of other noninterest income are within the scope of the ASC 606 revenue standard. The Company has adopted the revenue recognition standard as of January 1, 2018 and is using the modified retrospective transition method upon adoption. The Company completed its review of relevant contracts related to these revenue streams and determined that there were no material changes to be made to revenue recognition upon adoption. FASB ASC Topic 326 "Financial Instruments - Credit Losses" Update No. 2016-13. Update No. 2016-13 was issued in June 2016 to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments affect entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with earlier adoption permitted as of fiscal years beginning after December 15, 2018, including interim periods with those fiscal years. The Company is currently assessing the impact of the adoption of this standard on the Company's consolidated financial position. FASB ASC Topic 842 "Leases" Update No. 2016-02. Update No. 2016-02 was issued in February 2016 and affects any entity that enters into a lease (as that term is defined in this update), with some specified scope exemptions. The core principle of this update is that a lessee should recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. The recognition, measurement, and presentation of expenses and cash flows arising from a lease have not significantly changed from previous GAAP. In addition, the accounting applied by a lessor is largely unchanged from that applied under previous GAAP. For public companies, the amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently in the process of reviewing its current lease agreements to assess the impact of the adoption of this standard. |
SUMMARY OF SIGNIFICANT ACCOUN31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Finite-Lived Intangible Asses Useful Lives | The range of useful lives is as follows: Core deposit intangibles 10 years Noncompete agreements 1-3 years Leases 3-29 years The determination of which intangible assets have finite lives is subjective, as is the determination of the amortization period for such intangible assets. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Acquisition [Line Items] | |
Schedule of Estimated Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair value of the assets acquired and liabilities assumed as of the date of the acquisition: Net Assets Acquired at Fair Value (Dollars in thousands) Assets Cash $ 9,679 Loans 225,731 Premises and equipment 201 Goodwill 20,443 Core deposit and other intangibles 670 Other assets 19,197 Total assets acquired 275,921 Liabilities Deposits 175,686 Borrowings 51,150 Other liabilities 7,344 Total liabilities assumed 234,180 Purchase price $ 41,741 Additionally, the acquisition method requires the acquirer to recognize the assets acquired and the liabilities assumed at their fair values as of the acquisition date. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed as of the date of the acquisition: Net Assets Acquired at Fair Value (Dollars in thousands) Assets Cash $ 11,137 Loans 155,551 Premises and equipment 5,828 Goodwill 10,280 Core deposit and other intangibles 2,964 Other assets 4,629 Total assets acquired 190,389 Liabilities Deposits 159,580 Borrowings 2,475 Other liabilities 18 Total liabilities assumed 162,073 Purchase price $ 28,316 |
Business Acquisition, Pro Forma Information [Table Text Block] | The selected pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the financial results of the combined companies had the acquisition actually been completed at the beginning of the periods presented, nor does it indicate future results for any other interim or full-year period. Years Ended December 31 2017 2016 (Dollars in thousands) Net interest income after provision for loan losses $ 258,017 $ 227,429 Net income 90,025 78,150 The selected pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the financial results of the combined companies had the acquisition actually been completed at the beginning of the periods presented, nor does it indicate future results for any other interim or full-year period. Years Ended December 31 2016 2015 (Dollars in thousands) Net interest income after provision for loan losses $ 228,927 $ 221,252 Net income $ 80,411 $ 65,623 |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities and Held-to-maturity Securities | The following table presents a summary of the amortized cost, gross unrealized holding gains and losses and fair value of securities available for sale and securities held to maturity for the periods indicated: December 31, 2017 December 31, 2016 Amortized Gross Gross Unrealized Fair Amortized Gross Gross Unrealized Fair (Dollars in thousands) Available for sale securities U.S. government agency securities $ 35,475 $ 86 $ (131 ) $ 35,430 $ 24,006 $ 238 $ — $ 24,244 Agency mortgage-backed securities 214,934 1,897 (1,067 ) 215,764 173,268 2,852 (736 ) 175,384 Agency collateralized mortgage obligations 124,098 78 (2,164 ) 122,012 101,094 106 (1,332 ) 99,868 State, county, and municipal securities 2,237 37 — 2,274 3,743 50 — 3,793 Single issuer trust preferred securities issued by banks 2,012 4 — 2,016 2,311 3 (3 ) 2,311 Pooled trust preferred securities issued by banks and insurers 2,179 — (539 ) 1,640 2,200 — (616 ) 1,584 Small business administration pooled securities 47,852 44 (118 ) 47,778 37,561 — (372 ) 37,189 Equity securities 19,432 1,594 (442 ) 20,584 19,183 641 (553 ) 19,271 Total available for sale securities 448,219 3,740 (4,461 ) 447,498 363,366 3,890 (3,612 ) 363,644 Held to maturity securities U.S. treasury securities 1,006 29 — 1,035 1,007 47 — 1,054 Agency mortgage-backed securities 204,768 1,791 (736 ) 205,823 156,088 2,274 (858 ) 157,504 Agency collateralized mortgage obligations 262,998 397 (4,987 ) 258,408 297,445 1,002 (3,797 ) 294,650 Single issuer trust preferred securities issued by banks 1,500 29 — 1,529 1,500 44 — 1,544 Small business administration pooled securities 27,416 183 (200 ) 27,399 31,036 189 (327 ) 30,898 Total held to maturity securities 497,688 2,429 (5,923 ) 494,194 487,076 3,556 (4,982 ) 485,650 Total $ 945,907 $ 6,169 $ (10,384 ) $ 941,692 $ 850,442 $ 7,446 $ (8,594 ) $ 849,294 |
Schedule of Contractual Maturities of Securities | A schedule of the contractual maturities of securities available for sale and securities held to maturity as of December 31, 2017 is presented below: Available for Sale Held to Maturity Amortized Fair Amortized Fair (Dollars in thousands) Due in one year or less $ 3,213 $ 3,215 $ — $ — Due after one year to five years 49,241 49,312 15,636 15,711 Due after five to ten years 107,417 107,402 16,801 17,098 Due after ten years 268,916 266,985 465,251 461,385 Total debt securities 428,787 426,914 497,688 494,194 Equity securities 19,432 20,584 — — Total $ 448,219 $ 447,498 $ 497,688 $ 494,194 |
Schedule of Gross Unrealized Losses and Fair Value of Investments | December 31, 2017 Less than 12 months 12 months or longer Total Description of securities # of Fair Value Unrealized Fair Unrealized Fair Value Unrealized (Dollars in thousands) U.S. government agency securities 4 $ 24,343 $ (131 ) $ — $ — $ 24,343 $ (131 ) Agency mortgage-backed securities 84 $ 235,411 $ (1,493 ) $ 14,886 $ (310 ) $ 250,297 $ (1,803 ) Agency collateralized mortgage obligations 42 178,142 (1,579 ) 159,506 (5,572 ) 337,648 (7,151 ) Pooled trust preferred securities issued by banks and insurers 1 — — 1,640 (539 ) 1,640 (539 ) Small business administration pooled securities 4 34,553 (223 ) 9,647 (95 ) 44,200 (318 ) Equity securities 28 3,290 (39 ) 7,619 (403 ) 10,909 (442 ) Total temporarily impaired securities 163 $ 475,739 $ (3,465 ) $ 193,298 $ (6,919 ) $ 669,037 $ (10,384 ) December 31, 2016 Less than 12 months 12 months or longer Total Description of securities # of Fair Value Unrealized Fair Unrealized Fair Value Unrealized (Dollars in thousands) Agency mortgage-backed securities 57 $ 137,949 $ (1,594 ) $ — $ — $ 137,949 $ (1,594 ) Agency collateralized mortgage obligations 32 243,051 (3,140 ) 47,403 (1,989 ) 290,454 (5,129 ) Single issuer trust preferred securities issued by banks and insurers 1 — — 1,036 (3 ) 1,036 (3 ) Pooled trust preferred securities issued by banks and insurers 1 — — 1,583 (616 ) 1,583 (616 ) Small business administration pooled securities 5 59,846 (699 ) — — 59,846 (699 ) Equity securities 25 3,625 (77 ) 6,334 (476 ) 9,959 (553 ) Total temporarily impaired securities 121 $ 444,471 $ (5,510 ) $ 56,356 $ (3,084 ) $ 500,827 $ (8,594 ) |
LOANS, ALLOWANCE FOR LOAN LOS34
LOANS, ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Loans, Allowance for Loan Losses and Credit Quality [Abstract] | |
Schedule of Allowance for Loan Losses | The following table summarizes changes in the allowance for loan losses by loan category and bifurcates the amount of allowance allocated to each loan category based on collective impairment analysis and loans evaluated individually for impairment: December 31, 2017 Commercial Commercial Commercial Small Residential Home Other Consumer Total (Dollars in thousands) Allowance for loan losses Beginning balance $ 16,921 $ 30,369 $ 4,522 $ 1,502 $ 2,621 $ 5,238 $ 393 $ 61,566 Charge-offs (3,891 ) (39 ) — (302 ) (207 ) (276 ) (1,494 ) (6,209 ) Recoveries 615 385 — 114 31 198 993 2,336 Provision (benefit) (389 ) 738 1,176 263 377 230 555 2,950 Ending balance $ 13,256 $ 31,453 $ 5,698 $ 1,577 $ 2,822 $ 5,390 $ 447 $ 60,643 Ending balance: collectively evaluated for impairment $ 13,246 $ 31,411 $ 5,698 $ 1,576 $ 1,815 $ 5,125 $ 430 $ 59,301 Ending balance: individually evaluated for impairment $ 10 $ 42 $ — $ 1 $ 1,007 $ 265 $ 17 $ 1,342 Financing receivables ending balance: Collectively evaluated for impairment $ 853,885 $ 3,093,945 $ 401,797 $ 131,667 $ 733,809 $ 1,045,053 $ 9,573 $ 6,269,729 Individually evaluated for impairment 34,643 16,638 — 703 13,684 6,826 307 72,801 Purchased credit impaired loans — 5,978 — — 6,836 209 — 13,023 Total loans by group $ 888,528 $ 3,116,561 $ 401,797 $ 132,370 $ 754,329 $ 1,052,088 $ 9,880 $ 6,355,553 (1) December 31, 2016 Commercial Commercial Commercial Small Residential Home Other Consumer Total (Dollars in thousands) Allowance for loan losses Beginning balance $ 13,802 $ 27,327 $ 5,366 $ 1,264 $ 2,590 $ 4,889 $ 587 $ 55,825 Charge-offs (593 ) (414 ) — (228 ) (28 ) (602 ) (1,607 ) (3,472 ) Recoveries 859 564 — 195 299 141 1,080 3,138 Provision (benefit) 2,853 2,892 (844 ) 271 (240 ) 810 333 6,075 Ending balance $ 16,921 $ 30,369 $ 4,522 $ 1,502 $ 2,621 $ 5,238 $ 393 $ 61,566 Ending balance: collectively evaluated for impairment $ 13,260 $ 30,173 $ 4,522 $ 1,494 $ 1,535 $ 4,996 $ 372 $ 56,352 Ending balance: individually evaluated for impairment $ 3,661 $ 196 $ — $ 8 $ 1,086 $ 242 $ 21 $ 5,214 Financing receivables ending balance: Collectively evaluated for impairment $ 862,875 $ 2,983,642 $ 320,391 $ 121,855 $ 622,392 $ 982,095 $ 10,666 $ 5,903,916 Individually evaluated for impairment 39,178 16,813 — 871 14,175 5,863 397 77,297 Purchased credit impaired loans — 10,343 — — 7,859 189 1 18,392 Total loans by group $ 902,053 $ 3,010,798 $ 320,391 $ 122,726 $ 644,426 $ 988,147 $ 11,064 $ 5,999,605 (1) December 31, 2015 Commercial Commercial Commercial Small Residential Other Consumer Total (Dollars in thousands) Allowance for loan losses Beginning balance $ 15,573 $ 25,873 $ 3,945 $ 1,171 $ 2,834 $ 4,956 $ 748 $ 55,100 Charge-offs (2,010 ) (330 ) — (267 ) (285 ) (710 ) (1,316 ) (4,918 ) Recoveries 1,593 1,073 — 264 133 356 724 4,143 Provision (benefit) (1,354 ) 711 1,421 96 (92 ) 287 431 1,500 Ending balance $ 13,802 $ 27,327 $ 5,366 $ 1,264 $ 2,590 $ 4,889 $ 587 $ 55,825 Ending balance: collectively evaluated for impairment $ 13,619 $ 27,123 $ 5,366 $ 1,260 $ 1,312 $ 4,651 $ 564 $ 53,895 Ending balance: individually evaluated for impairment $ 183 $ 204 $ — $ 4 $ 1,278 $ 238 $ 23 $ 1,930 Financing receivables ending balance: Collectively evaluated for impairment $ 838,129 $ 2,619,294 $ 373,064 $ 95,225 $ 614,014 $ 921,563 $ 14,427 $ 5,475,716 Individually evaluated for impairment 5,147 22,986 304 1,021 15,405 5,989 558 51,410 Purchase credit impaired loans — 11,154 — — 9,187 251 3 20,595 Total loans by group $ 843,276 $ 2,653,434 $ 373,368 $ 96,246 $ 638,606 $ 927,803 $ 14,988 $ 5,547,721 (1) (1) The amount of net deferred costs on originated loans included in the ending balance was $6.1 million , $5.1 million , and $4.3 million at December 31, 2017 , 2016 , and 2015 , respectively. Net unamortized discounts on acquired loans not deemed to be PCI included in the ending balance was $9.4 million , $8.6 million , and $6.6 million at December 31, 2017 , 2016 , and 2015 , respectively. |
Schedule of Internal Risk-Rating Categories for the Company's Commercial Portfolio | The following table details the amount of outstanding principal balances relative to each of the risk-rating categories for the Company’s commercial portfolio: December 31, 2017 Category Risk Commercial and Commercial Real Commercial Small Business Total (Dollars in thousands) Pass 1 - 6 $ 806,331 $ 3,007,672 $ 400,964 $ 130,265 $ 4,345,232 Potential weakness 7 16,563 69,788 — 1,471 87,822 Definite weakness - loss unlikely 8 59,415 38,637 833 631 99,516 Partial loss probable 9 6,219 464 — 3 6,686 Definite loss 10 — — — — — Total $ 888,528 $ 3,116,561 $ 401,797 $ 132,370 $ 4,539,256 December 31, 2016 Category Risk Commercial and Commercial Real Commercial Small Business Total (Dollars in thousands) Pass 1 - 6 $ 783,825 $ 2,876,570 $ 317,099 $ 120,304 $ 4,097,798 Potential weakness 7 46,176 84,641 1,363 1,859 134,039 Definite weakness - loss unlikely 8 71,991 47,164 1,929 556 121,640 Partial loss probable 9 61 2,423 — 7 2,491 Definite loss 10 — — — — — Total $ 902,053 $ 3,010,798 $ 320,391 $ 122,726 $ 4,355,968 |
Schedule of Weighted Average FICO Scores and Weighted Average Combined LTV Ratio | December 31 2017 2016 Residential portfolio FICO score (re-scored)(1) 745 743 LTV (re-valued)(2) 59.2 % 63.2 % Home equity portfolio FICO score (re-scored)(1) 766 767 LTV (re-valued)(2)(3) 50.1 % 55.9 % (1) The average FICO scores at December 31, 2017 are based upon rescores available from August 2017 and origination score data for loans booked between September and December 2017. The average FICO scores at December 31, 2016 are based upon rescores available from November 2016 and origination score data for loans booked in December 2016. (2) The combined LTV ratios for December 31, 2017 are based upon updated automated valuations as of August 2017, when available, and/or the most current valuation data available as of December 31, 2017. The combined LTV ratios for December 31, 2016 are based upon updated automated valuations as of March 2015, when available, and /or the most current valuation data for loans as of December 31, 2016. The updated automated valuations provides new information on loans that may be available since the previous valuation was obtained. If no new information is available, the valuation will default to the previously obtained data or most recent appraisal. (3) For home equity loans and lines in a subordinate lien, the LTV data represents a combined LTV, taking into account the senior lien data for loans and lines. |
Schedule of Nonaccrual Loans | The following table shows the carrying value of nonaccrual loans at the dates indicated: December 31 2017 2016 (Dollars in thousands) Commercial and industrial $ 32,055 $ 37,455 Commercial real estate 3,123 6,266 Small business 230 302 Residential real estate 8,129 7,782 Home equity 6,022 5,553 Other consumer 71 47 Total nonaccrual loans (1) $ 49,630 $ 57,405 (1) Included in these amounts were $6.1 million and $5.2 million of nonaccruing TDRs at December 31, 2017 and 2016 , respectively |
Foreclosed Residential Real Estate Property [Table Text Block] | The following table shows information regarding foreclosed residential real estate property at the date indicated: December 31, 2017 December 31, 2016 (Dollars in thousands) Foreclosed residential real estate property held by the creditor $ 612 $ 3,775 Recorded investment in mortgage loans collateralized by residential real estate property that are in the process of foreclosure $ 2,971 $ 1,715 |
Schedule of the Age Analysis of Past Due Financing Receivables | The following table shows the age analysis of past due financing receivables as of the dates indicated: December 31, 2017 30-59 days 60-89 days 90 days or more Total Past Due Current Total Recorded Number Principal Number Principal Number Principal Number Principal (Dollars in thousands) Commercial and industrial 2 $ 195 2 $ 370 14 $ 32,007 18 $ 32,572 $ 855,956 $ 888,528 $ — Commercial real estate 7 3,060 — — 9 1,793 16 4,853 3,111,708 3,116,561 — Commercial construction — — — — — — — — 401,797 401,797 — Small business 17 339 11 144 10 57 38 540 131,830 132,370 — Residential real estate 6 870 13 2,385 22 3,471 41 6,726 747,603 754,329 — Home equity 22 1,310 6 451 20 2,025 48 3,786 1,048,302 1,052,088 — Other consumer (1) 265 197 16 27 17 45 298 269 9,611 9,880 8 Total 319 $ 5,971 48 $ 3,377 92 $ 39,398 459 $ 48,746 $ 6,306,807 $ 6,355,553 $ 8 December 31, 2016 30-59 days 60-89 days 90 days or more Total Past Due Current Total Recorded Number Principal Number Principal Number Principal Number Principal (Dollars in thousands) Commercial and industrial 8 $ 100 32 $ 253 6 $ 2,480 46 $ 2,833 $ 899,220 $ 902,053 $ — Commercial real estate 5 1,518 8 1,957 8 3,105 21 6,580 3,004,218 3,010,798 — Commercial construction — — — — — — — — 320,391 320,391 — Small business 9 323 — — 19 140 28 463 122,263 122,726 — Residential real estate 11 1,277 9 1,950 27 3,507 47 6,734 637,692 644,426 — Home equity 19 1,117 11 767 16 1,209 46 3,093 985,054 988,147 — Other consumer (1) 249 184 12 17 15 7 276 208 10,856 11,064 2 Total 301 $ 4,519 72 $ 4,944 91 $ 10,448 464 $ 19,911 $ 5,979,694 $ 5,999,605 $ 2 (1) Other consumer portfolio is inclusive of deposit account overdrafts recorded as loan balances |
Schedule of Troubled Debt Restructuring and Other Pertinent Information | The following table shows the Company’s total TDRs and other pertinent information as of the dates indicated: December 31 2017 2016 (Dollars in thousands) TDRs on accrual status $ 25,852 $ 27,093 TDRs on nonaccrual status 6,067 5,199 Total TDRs $ 31,919 $ 32,292 Amount of specific reserves included in the allowance for loan loss associated with TDRs: $ 1,342 $ 1,417 Additional commitments to lend to a borrower who has been a party to a TDR: $ 487 $ 1,378 |
Schedule of Troubled Debt Restructuring Modifications | The following table shows the modifications which occurred during the periods indicated and the change in the recorded investment subsequent to the modifications occurring: Years Ended December 31 2017 Number Pre-Modification Post-Modification (Dollars in thousands) Troubled debt restructurings Commercial and industrial 12 $ 1,787 $ 1,787 Commercial real estate 6 2,705 2,705 Small business 9 369 369 Residential real estate 10 1,284 1,326 Home equity 17 1,985 1,988 Total 54 $ 8,130 $ 8,175 2016 Troubled debt restructurings Commercial and industrial 10 $ 1,623 $ 1,623 Commercial real estate 10 2,959 2,959 Small business 3 188 188 Residential real estate 8 1,808 1,850 Home equity 13 932 932 Other consumer 6 153 153 Total 50 $ 7,663 $ 7,705 2015 Troubled debt restructurings Commercial and industrial 13 $ 1,314 $ 1,314 Commercial real estate 6 2,941 2,941 Small business 9 293 293 Residential real estate 8 843 870 Home equity 8 694 694 Total 44 $ 6,085 $ 6,112 (1) The post-modification balances represent the legal principal balance of the loan on the date of modification. These amounts may show an increase when modifications include a capitalization of interest |
Schedule of Post-Modification Balance of Troubled Debt Restructuring by Type of Modification | The following table shows the Company’s post-modification balance of TDRs listed by type of modification as of the periods indicated: Years Ended December 31 2017 2016 2015 (Dollars in thousands) Extended maturity $ 5,881 $ 5,044 $ 2,936 Adjusted interest rate — 92 — Combination rate and maturity 568 1,035 2,199 Court ordered concession 1,726 1,534 977 Total $ 8,175 $ 7,705 $ 6,112 |
Schedule of Troubled Debt Restructurings Which Have Subsequently Defaulted | The Company considers a loan to have defaulted when it reaches 90 days past due. The following table shows loans that were modified during the prior twelve months and subsequently defaulted during the periods indicated: Years Ended December 31 2017 2016 2015 Number Recorded Number Recorded Number Recorded (Dollars in thousands) Troubled debt restructurings that subsequently defaulted Commercial & industrial 1 $ 122 — $ — 3 $ 339 Commercial real estate — — 1 249 1 502 Residential real estate — — — — 2 326 Home equity — — — — 1 100 Total 1 $ 122 1 $ 249 7 $ 1,267 |
Schedule of Impaired Loans by Loan Portfolio | The table below sets forth information regarding the Company’s impaired loans. The information for average recorded investment and interest income recognized is reflective of the full period being presented and does not take into account the date at which a loan was deemed to be impaired. See information below as of the dates indicated: As of and For the Years Ended December 31 2017 Recorded Unpaid Related Average Interest Income Recognized (Dollars in thousands) With no related allowance recorded Commercial and industrial $ 34,267 $ 38,329 $ — $ 36,631 $ 446 Commercial real estate 13,245 14,374 — 13,683 559 Small business 556 619 — 569 21 Residential real estate 4,264 4,397 — 4,332 218 Home equity 4,950 5,056 — 5,063 198 Other consumer 91 92 — 102 7 Subtotal 57,373 62,867 — 60,380 1,449 With an allowance recorded Commercial and industrial 376 376 10 391 19 Commercial real estate 3,393 3,399 42 3,447 198 Small business 147 153 1 238 14 Residential real estate 9,420 10,154 1,007 9,575 284 Home equity 1,876 2,110 265 1,916 55 Other consumer 216 217 17 233 7 Subtotal 15,428 16,409 1,342 15,800 577 Total $ 72,801 $ 79,276 $ 1,342 $ 76,180 $ 2,026 2016 Recorded Unpaid Related Average Interest (Dollars in thousands) With no related allowance recorded Commercial and industrial $ 28,776 $ 29,772 $ — $ 26,472 $ 927 Commercial real estate 11,628 12,891 — 12,744 437 Small business 494 569 — 534 20 Residential real estate 4,216 4,427 — 4,302 185 Home equity 4,485 4,572 — 4,602 184 Other consumer 146 146 — 160 11 Subtotal 49,745 52,377 — 48,814 1,764 With an allowance recorded Commercial and industrial 10,402 10,440 3,661 10,760 325 Commercial real estate 5,185 5,533 196 5,491 200 Small business 377 392 8 408 21 Residential real estate 9,959 10,530 1,086 10,065 332 Home equity 1,378 1,547 242 1,403 50 Other consumer 251 252 21 268 8 Subtotal 27,552 28,694 5,214 28,395 936 Total $ 77,297 $ 81,071 $ 5,214 $ 77,209 $ 2,700 2015 Recorded Unpaid Related Average Interest (Dollars in thousands) With no related allowance recorded Commercial and industrial $ 2,613 $ 3,002 $ — $ 3,024 $ 71 Commercial real estate 12,008 13,128 — 11,676 375 Commercial construction 304 305 — 308 — Small business 527 618 — 584 22 Residential real estate 3,874 4,033 — 3,958 157 Home equity 4,893 5,005 — 5,023 195 Other consumer 184 185 — 201 15 Subtotal 24,403 26,276 — 24,774 835 With an allowance recorded Commercial and industrial 2,534 2,648 183 2,848 48 Commercial real estate 10,978 11,047 204 10,789 592 Small business 494 523 4 535 30 Residential real estate 11,531 12,652 1,278 11,669 460 Home equity 1,096 1,287 238 655 14 Other consumer 374 389 23 408 14 Subtotal 27,007 28,546 1,930 26,904 1,158 Total $ 51,410 $ 54,822 $ 1,930 $ 51,678 $ 1,993 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Table Text Block] | The following table displays certain information pertaining to PCI loans at the dates indicated: December 31 2017 2016 (Dollars in thousands) Outstanding balance $ 14,485 $ 20,477 Carrying amount $ 13,023 $ 18,392 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Table Text Block] | The following table summarizes activity in the accretable yield for the PCI loan portfolio: 2017 2016 (Dollars in thousands) Beginning balance $ 2,370 $ 2,827 Accretion (1,475 ) (1,540 ) Other change in expected cash flows (1) 748 953 Reclassification from nonaccretable difference for loans which have paid off (2) 148 130 Ending balance $ 1,791 $ 2,370 (1) Represents changes in cash flows expected to be collected resulting in increased interest income as a prospective yield adjustment over the remaining life of the loan(s). (2) Results in increased income during the period when a loan pays off at amount greater than originally expected |
BANK PREMISES AND EQUIPMENT (Ta
BANK PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | BANK PREMISES AND EQUIPMENT Bank premises and equipment at December 31, were as follows: 2017 2016 Estimated (Dollars in thousands) (In years) Cost Land $ 23,719 $ 20,585 n/a Bank premises 49,159 43,553 5-40 Leasehold improvements 25,184 24,387 1-27 Furniture and equipment 62,521 58,237 1-12 Leased equipment 10,644 — 7 Total cost 171,227 146,762 Accumulated depreciation (76,505 ) (68,282 ) Net bank premises and equipment $ 94,722 $ 78,480 |
GOODWILL AND IDENTIFIABLE INT36
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The following table sets forth the carrying value of goodwill and other intangible assets, net of accumulated amortization, at December 31: 2017 2016 (Dollars in thousands) Balances not subject to amortization Goodwill $ 231,806 $ 221,526 Balances subject to amortization Core deposit intangibles 8,636 8,527 Other intangible assets 705 1,321 Total other intangible assets 9,341 9,848 Total goodwill and other intangible assets $ 241,147 $ 231,374 |
Schedule of Goodwill | The changes in the carrying value of goodwill for the periods indicated were as follows: 2017 2016 (Dollars in thousands) Balance at beginning of year $ 221,526 $ 201,083 Acquisitions 10,280 20,443 Balance at end of year $ 231,806 $ 221,526 |
Schedule of Other Intangible Assets | The gross carrying amount and accumulated amortization of other intangible assets were as follows at the dates indicated: December 31 2017 2016 Gross Accumulated Net Gross Accumulated Net (Dollars in thousands) Core deposit intangibles $ 26,736 $ (18,100 ) $ 8,636 $ 23,917 $ (15,390 ) $ 8,527 Other intangible assets 3,165 (2,460 ) 705 3,020 (1,699 ) 1,321 Total $ 29,901 $ (20,560 ) $ 9,341 $ 26,937 $ (17,089 ) $ 9,848 |
Schedule of Intangible Assets Estimated Annual Amortization Expense | The following table sets forth the estimated annual amortization expense of intangible assets for each of the next five years: Year Amount (Dollars in thousands) 2018 $ 2,394 2019 $ 1,687 2020 $ 1,414 2021 $ 1,245 2022 $ 948 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Schedule of Time Deposits Maturities | The following is a summary of the scheduled maturities of time deposits as of December 31: 2017 2016 (Dollars in thousands) 1 year or less $ 393,452 61.1 % $ 430,834 66.4 % Over 1 year to 2 years 119,341 18.5 % 82,627 12.7 % Over 2 years to 3 years 57,619 8.9 % 44,190 6.8 % Over 3 years to 4 years 41,183 6.4 % 49,446 7.6 % Over 4 years to 5 years 32,706 5.1 % 42,055 6.5 % Total $ 644,301 100.0 % $ 649,152 100.0 % |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Federal Home Loan Bank Borrowings | Advances payable to the Federal Home Loan Bank as of December 31 are summarized as follows: 2017 2016 Weighted Weighted Average Average Total Contractual Total Contractual Outstanding Rate Outstanding Rate (Dollars in thousands) Stated Maturity 2017 $ — — % $ 50,000 2.43 % 2018 52,475 1.58 % — — % Subtotal 52,475 1.58 % 50,000 2.43 % Amortizing advances 789 819 Total Federal Home Loan Bank Advances $ 53,264 $ 50,819 |
Schedule of Underlying Assets of Repurchase Agreements when Amount of Repurchase Agreements Exceeds 10 Percent of Assets [Table Text Block] | The table below sets forth the remaining contractual maturity of the Company’s repurchase agreements allocated by source of collateral at the dates indicated: December 31 2017 2016 (Dollars in thousands) Sources of Collateral U.S. government agency securities $ 16,867 $ 20,233 Agency mortgage-backed securities 51,273 79,079 Agency collateralized mortgage obligations 94,539 77,601 Total customer repurchase agreements (1) $ 162,679 $ 176,913 |
Schedule of Long-term Borrowings | The following table summarizes long-term debt, net of debt issuances costs, as of the periods indicated: December 31 2017 2016 (Dollars in thousands) Junior subordinated debentures Capital Trust V $ 51,503 $ 51,500 Slades Ferry Trust I 10,229 10,224 Central Trust I 5,258 5,302 Central Trust II 6,083 6,081 Subordinated debentures 34,682 34,635 Total long-term debt $ 107,755 $ 107,742 |
Information relating to Trust Preferred Securities [Table Text Block] | Information relating to these trust preferred securities are as follows: Trust Description of Capital Securities Capital Trust V $50.0 million due in 2037, interest at a variable rate of 3 month LIBOR plus 1.48% (3.07% at December 31, 2017),which, effective on January 17, 2017, has been converted to a fixed rate of 2.84% through the use of an interest rate swap. Prior to 2017, this borrowing had been converted to a fixed rate of 6.52%, through the use of an interest rate swap which expired on December 28, 2016. These securities are callable quarterly, until maturity. Slades Ferry Trust I $10.0 million due in 2034, bearing interest at a variable rate of 3 month LIBOR plus 2.79% (4.39% at December 31, 2017). These securities are callable quarterly, until maturity. Central Trust I $5.1 million due in 2034, bearing interest at a variable rate of 3 month LIBOR plus 2.44% (4.03% at December 31, 2017). These securities are callable quarterly, until maturity. Central Trust II $5.9 million due in 2037, bearing interest at a variable rate of 3 month LIBOR plus 1.65% (3.24% at December 31, 2017), beginning in March of 2017. Previously, the interest was at a fixed rate of 7.015%. These securities are callable quarterly, until maturity. |
Schedule of Maturities of Borrowings | The following table sets forth the contractual maturities of long-term debt over the next five years: 2018 2019 2020 2021 2022 Thereafter Total (Dollars in thousands) Junior subordinated debentures Capital trust V $ — $ — $ — $ — $ — $ 51,547 $ 51,547 Slades ferry trust I — — — — — 10,310 10,310 Central trust I — — — — — 5,258 5,258 Central trust II — — — — — 6,083 6,083 Subordinated debentures — — — — — 35,000 35,000 Total $ — $ — $ — $ — $ — $ 108,198 $ 108,198 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of the Components of Earnings Per Share | Earnings per share consisted of the following components for the years ended December 31: 2017 2016 2015 (Dollars in thousands, except per share data) Net income $ 87,204 $ 76,648 $ 64,960 Weighted Average Shares Basic shares 27,294,028 26,404,071 25,891,382 Effect of dilutive securities 78,076 51,847 68,566 Diluted shares 27,372,104 26,455,918 25,959,948 Net income per share Basic EPS $ 3.19 $ 2.90 $ 2.51 Effect of dilutive securities — — (0.01 ) Diluted EPS $ 3.19 $ 2.90 $ 2.50 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended | |
Dec. 31, 2017 | ||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Schedule of Cumulatively Granted Stock Options and Restricted Stock Awards, Net of Forfeitures | The following table presents the amount of cumulatively granted stock options and restricted stock awards, net of forfeitures, through December 31, 2017 : Authorized Awards Cumulative Granted, Net of Total Authorized Stock Restricted 2005 Plan 1,650,000 537,941 695,546 1,233,487 416,513 2010 Plan 314,600 42,000 93,245 135,245 179,355 | |
Schedule of Pre-tax Compensation Expense and Related Tax Benefits | The following table presents the pre-tax expense associated with stock option and restricted stock awards and the related tax benefits recognized for the years presented: Years Ended December 31 2017 2016 2015 (Dollars in thousands) Stock based compensation expense Restricted stock awards(1) $ 2,730 $ 2,590 $ 2,296 Directors’ fee expense Stock options 76 72 — Restricted stock awards 527 303 194 Total stock based award expense $ 3,333 $ 2,965 $ 2,490 Related tax benefits recognized in earnings $ 1,362 $ 1,211 $ 1,122 (1) Inclusive of compensation expense associated with time-vested and performance-based restricted stock awards. | |
Schedule of Stock Options Granted | The Company made the following awards of nonqualified options to purchase shares of common stock in 2017 and 2016 . There were no such awards made in 2015 . Years Ended December 31 2017 2016 Date of grant 11/7/2017 7/14/2016 2/20/2016 Plan 2010 2010 2010 Options granted 5,000 5,000 5,000 Vesting period (beginning on the grant date) 14 months 18 months 22 months Expiration date 11/7/2027 7/14/2026 2/20/2026 Expected volatility 20.80 % 32.28 % 32.44 % Expected life (years) 5.5 5.5 5.5 Expected dividend yield 1.87 % 2.37 % 2.28 % Risk free interest rate 2.02 % 1.14 % 1.29 % Fair value per option $ 12.43 $ 11.46 $ 10.59 | |
Schedule of Relevant Information Relating to Stock Options | The following table presents relevant information relating to the Company’s stock options for the periods indicated: Years Ended December 31 2017 2016 2015 (Dollars in thousands, except per share data) Fair value of stock options vested based on grant date fair value $ 72 $ 37 $ 14 Intrinsic value of stock options exercised $ 1,082 $ 494 $ 3,362 Cash received from stock option exercises $ 918 $ 680 $ 6,105 Tax benefit realized on stock option exercises/repurchase $ 442 $ 204 $ 1,362 Weighted average grant date fair value of options granted (per share) $ 12.43 $ 11.03 $ — | |
Schedule of Stock Options | A summary of stock option activity of the Company’s Stock Option Grants for the year ended December 31, 2017 is presented in the table below: Outstanding Nonvested Stock Option Weighted Weighted Aggregate Stock Weighted (Dollars in thousands, except per share data) Balance at January 1, 2017 109,650 $ 29.93 6,666 $ 11.03 Granted 5,000 70.28 5,000 12.43 Exercised (30,150 ) 30.43 — — Vested n/a n/a (6,667 ) 10.85 Forfeited — — — — Expired (500 ) 28.88 — — Balance at December 31, 2017 84,000 (2) $ 32.16 3.04 years $ 3,258 4,999 $ 12.11 Options outstanding and expected to vest at December 31, 2017 84,000 (3) $ 32.16 3.04 years $ 3,258 Options exercisable at December 31, 2017 79,001 (4) $ 30.21 2.64 years $ 3,218 Unrecognized compensation cost $ 22 Weighted average remaining recognition period (years) 1.00 (1) The aggregate intrinsic value in the preceding tables represents the total pre-tax intrinsic value, based on the average of the high price and low price at which the Company’s common stock traded on December 31, 2017 of $70.95 , which would have been received by the option holders had they all exercised their options as of that date. (2) Inclusive of 38,000 stock options outstanding to Directors. (3) Inclusive of 38,000 vested stock options and expected to vest to Directors. (4) Inclusive of 33,001 vested stock options outstanding to Directors. | |
Schedule of Restricted Stock Granted | The Company grants both time-vested restricted stock awards as well as performance-based restricted stock awards. During the years ended December 31, 2017 , 2016 , and 2015 the Company has made the following restricted stock award grants: Shares Granted Plan Fair Value (1) Vesting Period Time-vested 2017 2/13/2017 1,200 1,200 2005 $ 62.53 Ratably over 5 years from grant date 2/16/2017 34,150 34,150 2005 $ 63.10 Ratably over 5 years from grant date 3/31/2017 500 500 2005 $ 65.63 Ratably over 5 years from grant date 4/3/2017 1,500 1,500 2005 $ 64.14 Once on November 30, 2017 (2) 5/15/2017 1,000 1,000 2005 $ 64.03 Ratably over 5 years from grant date 5/23/2017 7,000 7,000 2010 $ 61.95 At the end of 5 years from grant date (3) 6/15/2017 950 950 2005 $ 66.18 Ratably over 5 years from grant date 2016 2/11/2016 51,475 2005 $ 41.96 Ratably over 5 years from grant date 3/1/2016 600 2005 $ 44.37 Ratably over 5 years from grant date 5/24/2016 8,700 2010 $ 48.34 At the end of 5 years from grant date (3) 9/19/2016 800 2005 $ 52.92 Ratably over 5 years from grant date 11/7/2016 500 2005 $ 54.28 Ratably over 5 years from grant date 11/14/2016 725 2010 $ 63.43 Once on May 24, 2021 (4) 2015 2/11/2015 31,500 2005 $ 39.42 Ratably over 5 years from grant date 2/12/2015 25,910 2005 $ 40.03 Ratably over 5 years from grant date 3/19/2015 3,800 2005 $ 43.56 Ratably over 5 years from grant date 4/27/2015 625 2005 $ 41.61 At the end of 3 years from grant date 4/27/2015 1,875 2005 $ 41.61 At the end of 5 years from grant date 5/27/2015 8,800 2010 $ 45.02 At the end of 5 years from grant date (3) 7/14/2015 800 2010 $ 47.82 Once on May 27, 2020 (5) 10/13/2015 1,000 2005 $ 46.09 Ratably over 5 years from grant date 10/20/2015 2,000 2005 $ 46.47 Ratably over 5 years from grant date Performance-based 2/16/2017 14,400 2005 $ 63.10 The earlier of: the date on which it is determined if the performance goal has been achieved; or, March 31, 2020. 2/11/2016 20,450 2005 $ 41.96 The earlier of: the date on which it is determined if the performance goal has been achieved; or, March 31, 2019. 2/12/2015 21,780 2005 $ 40.03 The earlier of: the date on which it is determined if the performance goal has been achieved; or, March 31, 2018. (1) The fair value of the restricted stock awards are based upon the average of the high and low prices at which the Company’s common stock traded on the date of grant. The holders of time-vested restricted stock awards participate fully in the rewards of stock ownership of the Company, including voting and dividend rights. The holders of performance-based restricted stock awards do not participate in the rewards of stock ownership of the Company until vested. The holders of all restricted stock awards are not required to pay any consideration to the Company for the awards. (2) This restricted stock grant fully vested upon an employee's termination, on November 30, 2017. (3) These restricted stock grants will vest at the end of a five year period, or earlier if the director ceases to be a director for any reason other than cause, such as, for example, by retirement. (4) These restricted stock grants will vest on May 24, 2021, or earlier if the director ceases to be a director for any reason other than cause, such as, for example, by retirement. (5) These restricted stock grants will vest on May 27, 2020, or earlier if the director ceases to be a director for any reason other than cause, such as, for example, by retirement. | |
Schedule of Share-based Compensation, Fair Value of Restricted Stock Awards Vesting [Table Text Block] | The following table presents the fair value of restricted stock awards vesting during the periods presented: Years Ended December 31 2017 2016 2015 (Dollars in thousands) Fair value of restricted stock awards upon vesting $ 5,717 $ 3,019 $ 2,610 | [1] |
Schedule of Restricted Stock Awards | A summary of the status of the Company’s Restricted Stock Award Grants for the year ended December 31, 2017 is presented in the table below: Outstanding Restricted Stock Weighted Average (Dollars in thousands, except per share data) Balance at January 1, 2017 264,315 $ 38.88 Granted 60,700 63.07 Vested/released (89,436 ) 36.79 Forfeited (9,614 ) 39.49 Balance at December 31, 2017 225,965 (1) $ 46.18 Unrecognized compensation cost (inclusive of directors’ fees) $ 6,355 Weighted average remaining recognition period (years) 3.00 (1) Inclusive of 38,445 restricted stock awards outstanding to Directors. | |
[1] | These restricted stock grants will vest on May 27, 2020, or earlier if the director ceases to be a director for any reason other than cause, such as, for example, by retirement. |
DERIVATIVES AND HEDGING ACTIV41
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Details of derivative positions for interest rate swaps which qualify as hedges for accounting purposes | The following table reflects the Company’s derivative positions for the periods indicated below for interest rate swaps which qualify as cash flow hedges for accounting purposes: December 31, 2017 Notional Trade Effective Maturity Receive Current Pay Fixed Fair Value (Dollars in thousands) $ 25,000 9-Dec-08 10-Dec-08 10-Dec-18 3 Month LIBOR 1.54 % 2.94 % $ (264 ) 25,000 1-Apr-16 17-Jan-17 15-Dec-21 3 Month LIBOR 1.59 % 1.36 % 772 25,000 1-Apr-16 17-Jan-17 15-Dec-21 3 Month LIBOR 1.59 % 1.36 % 763 25,000 18-Jul-17 15-Aug-17 15-Aug-22 3 Month LIBOR 1.42 % 1.88 % 345 $ 100,000 $ 1,616 December 31, 2016 Notional Trade Effective Maturity Receive Current Pay Fixed Fair Value (Dollars in thousands) $ 25,000 9-Dec-08 10-Dec-08 10-Dec-18 3 Month LIBOR 0.95 % 2.94 % $ (740 ) 25,000 1-Apr-16 17-Jan-17 15-Dec-21 3 Month LIBOR N/A 1.36 % 689 25,000 1-Apr-16 17-Jan-17 15-Dec-21 3 Month LIBOR N/A 1.36 % 675 $ 75,000 $ 624 |
Summary of customer related derivative positions, not designated as hedging | The following table reflects the Company’s customer related derivative positions for the periods indicated below for those derivatives not designated as hedging: Number of Notional Amount Maturing Less than 1 year Less than 2 years Less than 3 years Less than 4 years Thereafter Total Fair Value December 31, 2017 (Dollars in thousands) Loan level swaps Receive fixed, pay variable 246 $ 36,023 $ 61,500 $ 152,287 $ 111,147 $ 591,385 $ 952,342 $ 3,875 Pay fixed, receive variable 231 $ 36,023 $ 61,500 $ 152,287 $ 111,147 $ 591,385 $ 952,342 $ (3,880 ) Foreign exchange contracts Buys foreign currency, sells U.S. currency 15 $ 26,382 $ 3,780 $ — $ — $ — $ 30,162 $ 1,202 Buys U.S. currency, sells foreign currency 15 $ 26,382 $ 3,780 $ — $ — $ — $ 30,162 $ (1,188 ) December 31, 2016 (Dollars in thousands) Loan level swaps Receive fixed, pay variable 222 $ 30,245 $ 21,708 $ 63,771 $ 165,783 $ 567,897 $ 849,404 $ 12,005 Pay fixed, receive variable 207 $ 30,245 $ 21,708 $ 63,771 $ 165,783 567,897 $ 849,404 $ (12,008 ) Foreign exchange contracts Buys foreign currency, sells U.S. currency 33 $ 45,711 $ — $ — $ — $ — $ 45,711 $ (2,250 ) Buys U.S. currency, sells foreign currency 33 $ 45,711 $ — $ — $ — $ — $ 45,711 $ 2,277 (1) The Company may enter into one dealer swap agreement which offsets multiple commercial borrower swap agreements. |
Fair value of derivative financial instruments as well as their classification on the balance sheet | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the balance sheet at the periods indicated: Asset Derivatives Liability Derivatives Fair Value at Fair Value at Fair Value at Fair Value at Balance Sheet December 31, 2017 December 31, 2016 Balance Sheet December 31, 2017 December 31, 2016 (Dollars in thousands) Derivatives designated as hedges Interest rate derivatives Other assets $ 1,880 $ 1,364 Other liabilities $ 264 $ 740 Derivatives not designated as hedges Customer Related Positions: Loan level derivatives Other assets 14,236 18,629 Other liabilities 14,241 18,632 Foreign exchange contracts Other assets 1,202 2,338 Other liabilities 1,188 2,311 Mortgage Derivatives Interest rate lock commitments Other assets 149 430 Other liabilities — — Forward sales agreements Other assets 9 — Other liabilities — 233 15,596 21,397 15,429 21,176 Total $ 17,476 $ 22,761 $ 15,693 $ 21,916 |
Effect of derivative financial instruments included in OCI and current earnings | The table below presents the effect of the Company’s derivative financial instruments included in OCI and current earnings for the periods indicated: Years Ended December 31 2017 2016 2015 (Dollars in thousands) Derivatives designated as hedges Gain in OCI on derivatives (effective portion), net of tax $ 443 $ 2,170 $ 1,199 Loss reclassified from OCI into interest expense (effective portion) $ (441 ) $ (2,520 ) $ (2,828 ) Loss recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) Interest expense $ — $ — $ — Other expense — — — Total $ — $ — $ — Derivatives not designated as hedges Changes in fair value of customer related positions Other income $ 6 $ 73 $ 60 Other expenses (21 ) (82 ) (53 ) Changes in fair value of mortgage derivatives Mortgage banking income (39 ) (35 ) (50 ) Total $ (54 ) $ (44 ) $ (43 ) |
BALANCE SHEET OFFSETTING (Table
BALANCE SHEET OFFSETTING (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Offsetting [Abstract] | |
Financial Instruments Derivative Assets Liabilities and resell agreements net of amount not offset [Table Text Block] | BALANCE SHEET OFFSETTING The Company does not offset fair value amounts recognized for derivative instruments or repurchase agreements. The Company does net the amount recognized for the right to reclaim cash collateral against the obligation to return cash collateral arising from derivative instruments executed with the same counterparty under a master netting arrangement. Collateral legally required to be maintained at dealer banks by the Company is monitored and adjusted as necessary. The following tables present the Company's asset and liability derivative positions and the potential effect of netting arrangements on its financial position, as of the periods indicated: Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts Recognized in the Statement of Financial Position Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Financial Instruments (1) Collateral Pledged (Received) Net Amount December 31, 2017 (Dollars in thousands) Derivative Assets Interest rate swaps $ 1,880 $ — $ 1,880 $ 805 $ — $ 1,075 Loan level derivatives 14,236 — 14,236 4,578 — 9,658 Customer foreign exchange contracts 1,202 — 1,202 — — 1,202 $ 17,318 $ — $ 17,318 $ 5,383 $ — $ 11,935 Derivative Liabilities Interest rate swaps $ 264 $ — $ 264 $ — $ 264 $ — Loan level derivatives 14,241 — 14,241 5,383 3,675 5,183 Customer foreign exchange contracts 1,188 — 1,188 — — 1,188 $ 15,693 $ — $ 15,693 $ 5,383 $ 3,939 $ 6,371 Customer repurchase agreements $ 162,679 $ — $ 162,679 $ — $ 162,679 $ — (1) Reflects offsetting derivative positions with the same counterparty. Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts Recognized in the Statement of Financial Position Gross Amounts Offset in the Statement of Financial Position Net Amounts Presented in the Statement of Financial Position Financial Instruments (1) Collateral Pledged (Received) Net Amount December 31, 2016 (Dollars in thousands) Derivative Assets Interest rate swaps $ 1,364 $ — $ 1,364 $ 961 $ — $ 403 Loan level derivatives 18,629 — 18,629 3,261 — 15,368 Customer foreign exchange contracts 2,338 — 2,338 — — 2,338 $ 22,331 $ — $ 22,331 $ 4,222 $ — $ 18,109 Derivative Liabilities Interest rate swaps $ 740 $ — $ 740 $ — $ 740 $ — Loan level derivatives 18,632 — 18,632 4,222 11,106 3,304 Customer foreign exchange contracts 2,311 — 2,311 — — 2,311 $ 21,683 $ — $ 21,683 $ 4,222 $ 11,846 $ 5,615 Customer repurchase agreements $ 176,913 $ — $ 176,913 $ — $ 176,913 $ — (1) Reflects offsetting derivative positions with the same counterparty. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Taxes | The provision for income taxes is comprised of the following components: Years Ended December 31 2017 2016 2015 (Dollars in thousands) Current expense Federal $ 28,852 $ 26,549 $ 11,946 State 9,278 8,883 5,052 Total current expense 38,130 35,432 16,998 Deferred expense (benefit) Federal 7,953 153 8,466 State 1,258 (158 ) 1,754 Total deferred expense (benefit) 9,211 (5 ) 10,220 Total expense $ 47,341 $ 35,427 $ 27,218 |
Schedule of Income Tax Rate Reconciliation | The difference between the statutory federal income tax rate of 35% and the effective income tax rate reported for the last three years is detailed below: Years Ended December 31 2017 2016 2015 (Dollars in thousands) Computed statutory federal income tax provision $ 47,091 35.00 % $ 39,226 35.00 % $ 32,262 35.00 % State taxes, net of federal tax benefit 6,817 5.07 % 5,643 5.03 % 4,500 4.88 % Revaluation of net deferred tax assets 1,895 1.41 % — — % — — % Merger and other related costs (non-deductible) 213 0.16 % 210 0.19 % 185 0.20 % Change in valuation allowance 31 0.02 % 28 0.02 % 41 0.04 % New Markets Tax Credits (3,960 ) (2.94 )% (6,360 ) (5.67 )% (6,514 ) (7.07 )% Increase in cash surrender value of life insurance (1,445 ) (1.07 )% (1,431 ) (1.28 )% (1,292 ) (1.40 )% Stock-based compensation (1,258 ) (0.94 )% — — % — — % Low Income Housing Project Investments (1,253 ) (0.93 )% (1,641 ) (1.46 )% (1,182 ) (1.28 )% Nontaxable interest, net (987 ) (0.73 )% (996 ) (0.89 )% (973 ) (1.06 )% Other, net 197 0.15 % 748 0.67 % 191 0.22 % Total expense $ 47,341 35.20 % $ 35,427 31.61 % $ 27,218 29.53 % |
Schedule of Net Deferred Tax Asset | The tax-effected components of the net deferred tax asset at December 31 were as follows: 2017 2016 (Dollars in thousands) Deferred tax assets Accrued expenses not deducted for tax purposes $ 9,268 $ 15,401 Allowance for loan losses 16,702 24,681 Deferred gain on sale leaseback transaction 909 1,744 Employee and director equity compensation 1,559 2,095 Federal Home Loan Bank borrowings fair value adjustment 26 82 Loan basis difference fair value adjustment 3,070 4,336 Net operating loss carry-forward 127 69 Net unrealized loss on securities available for sale 106 — Other 527 1,015 Gross deferred tax assets 32,294 49,423 Valuation allowance (121 ) (69 ) Total deferred tax assets net of valuation allowance $ 32,173 $ 49,354 Deferred tax liabilities Core deposit and other intangibles $ 2,057 $ 3,040 Deferred loan fees, net 4,275 5,407 Fixed assets 5,270 6,168 Goodwill 10,265 14,737 Net unrealized gain on securities available for sale — 105 Derivatives fair value adjustment 524 454 Other 4,307 3,909 Gross deferred tax liabilities $ 26,698 $ 33,820 Total net deferred tax asset $ 5,475 $ 15,534 |
Reconciliation of Unrecognized Tax Benefits | The Company accounts for uncertainties in income taxes by providing a tax reserve for certain positions. The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits: (Dollars in thousands) Balance at December 31, 2015 $ 81 Reduction of tax positions for prior years — Increase for prior year tax position — Increase for current year tax positions 30 Balance at December 31, 2016 $ 111 Reduction of tax positions for prior years — Increase for prior year tax positions — Increase for current year tax positions 31 Balance at December 31, 2017 $ 142 |
LOW INCOME HOUSING PROJECT IN44
LOW INCOME HOUSING PROJECT INVESTMENTS Low Income Housing Project Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Low Income Housing Project Investments [Abstract] | |
Investments in Low Income Housing Projects [Table Text Block] | The following table presents certain information related to the Company's investments in low income housing projects as of December 31: 2017 2016 2015 (Dollars in thousands) Original investment value $ 47,399 $ 47,379 $ 42,199 Current recorded investment $ 35,225 $ 39,606 $ 38,151 Unfunded liability obligation $ 4,536 $ 12,161 $ 14,607 Tax credits and benefits earned during the year $ 5,654 $ 5,366 $ 3,632 Amortization of investments during the year (1) $ 4,402 $ 3,725 $ 2,450 Net income tax benefit recognized during the year $ 1,253 $ 1,641 $ 1,182 (1) The 2017 amount is inclusive of $466,000 related to the revaluation of Low Income Housing tax credit investments as a result of the 2017 Tax Act. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of Multiemployer Plan | Funding Status FIP/RP Status Surcharge Expiration Minimum EIN/Pension 2017 2016 Pentegra defined benefit plan for financial institutions 13-5645888/333 At least 80 percent At least 80 percent No No N/A $ — |
Schedule of Multiemployer Plan Contributions | The Company’s contributions to the Pension Plans were as follows for the periods indicated: Required Contributions - Plan Year Allocation Cash Payment Future period funding 2017-2018 2016-2017 2015-2016 (Dollars in thousands) 2017 $ 6,432 $ 5,000 $ 1,432 $ — $ — 2016 $ 6,245 $ 4,000 $ — $ 2,245 $ — 2015 $ 2,983 $ 1,215 $ — $ — $ 1,768 |
Schedule of Supplemental Retirement Expense and Contributions Paid | The following table shows the defined benefit supplemental retirement expense, and the contributions paid to the plans which were used only to pay the current year benefits as of the dates indicated: 2017 2016 2015 (Dollars in thousands) Retirement expense $ 1,580 $ 1,513 $ 1,834 Contributions paid $ 367 $ 320 $ 276 |
Schedule of Expected Benefit Payments | Expected future benefit payments for the defined benefit supplemental executive retirement plans are presented below: Defined Benefit Supplemental Executive (Dollars in thousands) 2018 $ 408 2019 $ 481 2020 $ 467 2021 $ 461 2022 $ 454 2023-2027 $ 5,366 |
Schedule of Supplemental Executive Retirement Plans | The following table illustrates the status of the defined benefit supplemental executive retirement plans at December 31 for the years presented: Defined Benefit Supplemental Executive 2017 2016 2015 (Dollars in thousands) Change in accumulated benefit obligation Benefit obligation at beginning of year $ 14,177 $ 13,290 $ 12,537 Accumulated service cost 423 395 742 Interest cost 547 539 470 Actuarial loss/(gain) 969 273 (183 ) Benefits paid (367 ) (320 ) (276 ) Accumulated benefit obligation at end of year $ 15,749 $ 14,177 $ 13,290 Change in plan assets Fair value of plan assets at beginning of year $ — $ — $ — Employer contribution 367 320 276 Benefits paid (367 ) (320 ) (276 ) Fair value of plan assets at end of year $ — $ — $ — Funded status at end of year $ (15,749 ) $ (14,177 ) $ (13,290 ) Assets — — — Liabilities (15,749 ) (14,177 ) (13,290 ) Accrued benefit cost $ (15,749 ) $ (14,177 ) $ (13,290 ) Amounts recognized in accumulated other comprehensive income (“AOCI”) Net loss $ 3,465 $ 2,830 $ 2,859 Prior service cost 1,047 1,323 1,599 Amounts recognized in AOCI $ 4,512 $ 4,153 $ 4,458 Information for plans with an accumulated benefit obligation in excess of plan assets Projected benefit obligation $ 15,749 $ 14,177 $ 13,290 Accumulated benefit obligation $ 15,749 $ 14,177 $ 13,290 Net periodic benefit cost Service cost $ 423 $ 395 $ 742 Interest cost 547 539 470 Amortization of prior service cost 276 276 305 Recognized net actuarial loss 334 303 317 Net periodic benefit cost $ 1,580 $ 1,513 $ 1,834 Amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit cost over next fiscal year Net actuarial loss $ 415 $ 338 $ 270 Net prior service cost $ 276 $ 276 $ 276 Discount rate used for benefit obligation 2.48-3.45% 2.49-3.94% 2.49-4.16% Discount rate used for net periodic benefit cost 2.49-3.94% 2.49-4.16% 2.24-3.84% Rate of compensation increase n/a n/a n/a |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis | Assets and liabilities measured at fair value on a recurring and nonrecurring basis were as follows as of the dates indicated: Fair Value Measurements at Reporting Date Using Balance Quoted Prices in Significant Other Significant December 31, 2017 (Dollars in thousands) Recurring fair value measurements Assets Trading securities $ 1,324 $ 1,324 $ — $ — Securities available for sale U.S. Government agency securities 35,430 — 35,430 — Agency mortgage-backed securities 215,764 — 215,764 — Agency collateralized mortgage obligations 122,012 — 122,012 — State, county, and municipal securities 2,274 — 2,274 — Single issuer trust preferred securities issued by banks and insurers 2,016 — 2,016 — Pooled trust preferred securities issued by banks and insurers 1,640 — — 1,640 Small business administration pooled securities 47,778 — 47,778 — Equity securities 20,584 20,584 — — Loans held for sale 4,768 — 4,768 — Derivative instruments 17,476 — 17,476 — Liabilities Derivative instruments 15,693 — 15,693 — Total recurring fair value measurements $ 455,373 $ 21,908 $ 431,825 $ 1,640 Nonrecurring fair value measurements Assets Collateral dependent impaired loans $ 33,567 $ — $ — $ 33,567 Other real estate owned and other foreclosed assets 612 — — 612 Total nonrecurring fair value measurements $ 34,179 $ — $ — $ 34,179 Fair Value Measurements at Reporting Date Using Balance Quoted Prices in Significant Other Significant December 31, 2016 (Dollars in thousands) Recurring fair value measurements Assets Trading securities $ 804 $ 804 $ — $ — Securities available for sale U.S. Government agency securities 24,244 $ — 24,244 — Agency mortgage-backed securities 175,384 — 175,384 — Agency collateralized mortgage obligations 99,868 — 99,868 — State, county, and municipal securities 3,793 — 3,793 — Single issuer trust preferred securities issued by banks and insurers 2,311 — 2,311 — Pooled trust preferred securities issued by banks and insurers 1,584 — — 1,584 Small business administration pooled securities 37,189 — 37,189 — Equity securities 19,271 19,271 — — Loans held for sale 6,139 — 6,139 — Derivative instruments 22,761 — 22,761 — Liabilities Derivative instruments 21,916 — 21,916 — Total recurring fair value measurements $ 371,432 $ 20,075 $ 349,773 $ 1,584 Nonrecurring fair value measurements: Assets Collateral dependent impaired loans $ 33,974 $ — $ — $ 33,974 Other real estate owned and other foreclosed assets 4,173 — — 4,173 Total nonrecurring fair value measurements $ 38,147 $ — $ — $ 38,147 |
Reconciliation of Assets on Recurring Basis Using Significant Unobservable Inputs | All assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were valued using pricing models and discounted cash flow methodologies, as of December 31, 2017 , 2016 and 2015 . This reconciliation is presented in the table below, for the periods indicated: 2017 2016 2015 (Dollars in thousands) Pooled Trust Preferred Securities Beginning balance $ 1,584 $ 1,572 $ 6,321 Gain and (losses) (realized/unrealized) Included in other comprehensive income 77 29 14 Sales — — (4,679 ) Settlements (21 ) (17 ) (84 ) Ending Balance $ 1,640 $ 1,584 $ 1,572 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following table sets forth certain unobservable inputs regarding the Company's financial instruments that are classified as Level 3 as of December 31st for the years indicated: Valuation Technique Fair Value Unobservable Inputs Range Weighted Average 2017 2016 2017 2016 2017 2016 (Dollars in thousands) Discounted cash flow methodology Pooled trust preferred securities $ 1,640 $ 1,584 Cumulative prepayment 0% - 61% 0% - 62% 2.5% 2.5% Cumulative default 5% - 100% 5% - 100% 12.4% 12.8% Loss given default 85% - 100% 85% - 100% 94.3% 94.2% Cure given default 0% - 75% 0% - 75% 60.9% 60.9% Appraisals of collateral (1) Collateral dependent impaired loans $ 33,567 $ 33,974 Other real estate owned and foreclosed assets $ 612 $ 4,173 (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of these possible adjustments may vary. |
Schedule of Fair Values and Related Carrying Amounts by Balance Sheet Grouping | The estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below as of the periods indicated: Fair Value Measurements at Reporting Date Using Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2017 (Dollars in thousands) Financial assets Securities held to maturity(a) U.S. Treasury securities $ 1,006 $ 1,035 $ — $ 1,035 $ — Agency mortgage-backed securities 204,768 205,823 — 205,823 — Agency collateralized mortgage obligations 262,998 258,408 — 258,408 — Single issuer trust preferred securities issued by banks 1,500 1,529 — 1,529 — Small business administration pooled securities 27,416 27,399 — 27,399 — Loans, net of allowance for loan losses(b) 6,261,343 6,116,051 — — 6,116,051 Federal Home Loan Bank stock(c) 11,597 11,597 — 11,597 — Cash surrender value of life insurance policies(d) 151,528 151,528 — 151,528 — Financial liabilities Deposit liabilities, other than time deposits(e) $ 6,084,952 $ 6,084,952 $ — $ 6,084,952 $ — Time certificates of deposits(f) 644,301 639,060 — 639,060 $ — Federal Home Loan Bank borrowings(f) 53,264 52,111 — 52,111 — Customer repurchase agreements and other short-term borrowings(f) 162,679 162,679 — — 162,679 Junior subordinated debentures(g) 73,073 74,680 — 74,680 — Subordinated debentures(f) 34,682 32,707 — — 32,707 Fair Value Measurements at Reporting Date Using Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2016 Financial assets (Dollars in thousands) Securities held to maturity(a) U.S. Treasury securities $ 1,007 $ 1,054 $ — $ 1,054 $ — Agency mortgage-backed securities 156,088 157,504 — 157,504 — Agency collateralized mortgage obligations 297,445 294,650 — 294,650 — Single issuer trust preferred securities issued by banks 1,500 1,544 — 1,544 — Small business administration pooled securities 31,036 30,898 — 30,898 — Loans, net of allowance for loan losses(b) 5,904,065 5,784,778 — — 5,784,778 Federal Home Loan Bank stock(c) 11,497 11,497 — 11,497 — Cash surrender value of life insurance policies(d) 144,503 144,503 — 144,503 — Financial liabilities Deposit liabilities, other than time deposits(e) $ 5,763,101 $ 5,763,101 $ — $ 5,763,101 $ — Time certificates of deposits(f) 649,152 647,038 — 647,038 — Federal Home Loan Bank borrowings(f) 50,819 50,898 — 50,898 — Customer repurchase agreements and other short-term borrowings(f) 176,913 176,913 — — 176,913 Junior subordinated debentures(g) 73,107 72,510 — 72,510 — Subordinated debentures(f) 34,635 34,241 — — 34,241 (a) The fair values presented are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments and/or discounted cash flow analysis. (b) Fair value is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities or cash flows. Additionally, this amount excludes collateral dependent impaired loans, which are deemed to be marked to fair value on a nonrecurring basis. (c) FHLB stock has no quoted market value and is carried at cost, therefore the carrying amount approximates fair value. (d) Cash surrender value of life insurance is recorded at its cash surrender value (or the amount that can be realized upon surrender of the policy), therefore carrying amount approximates fair value. (e) Fair value of demand deposits, savings and interest checking accounts and money market deposits is the amount payable on demand at the reporting date. (f) Fair value was determined by discounting anticipated future cash payments using rates currently available for instruments with similar remaining maturities. (g) Fair value was determined based upon market prices of securities with similar terms and maturities. |
OTHER COMPREHENSIVE LOSS (Table
OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Other Comprehensive Loss | The following table presents a reconciliation of the changes in the components of other comprehensive income (loss) for the dates indicated, including the amount of income tax (expense) benefit allocated to each component of other comprehensive income (loss): December 31, 2017 Pre Tax Tax (Expense) After Tax (Dollars in thousands) Change in fair value of securities available for sale $ (996 ) $ 321 $ (675 ) Less: net security gains reclassified into other noninterest income (expense) 3 (1 ) 2 Net change in fair value of securities available for sale (999 ) 322 (677 ) Change in fair value of cash flow hedges 307 (125 ) 182 Less: net cash flow hedge losses reclassified into interest on borrowings expense (1) (441 ) 180 (261 ) Net change in fair value of cash flow hedges 748 (305 ) 443 Net unamortized loss related to defined benefit pension and other postretirement adjustments arising during the period (995 ) 407 (588 ) Amortization of net actuarial losses 278 (113 ) 165 Amortization of net prior service cost 276 (113 ) 163 Net change in other comprehensive income for defined benefit postretirement plans (2) (441 ) 181 (260 ) Total other comprehensive loss $ (692 ) $ 198 $ (494 ) Year Ended December 31, 2016 Pre Tax Tax (Expense) After Tax (Dollars in thousands) Change in fair value of securities available for sale $ (1,858 ) $ 710 $ (1,148 ) Less: net security losses reclassified into other noninterest income (expense) (26 ) 11 (15 ) Net change in fair value of securities available for sale (1,832 ) 699 (1,133 ) Change in fair value of cash flow hedges 1,133 (453 ) 680 Less: net cash flow hedge losses reclassified into interest on borrowings expense (1) (2,520 ) 1,030 (1,490 ) Net change in fair value of cash flow hedges 3,653 (1,483 ) 2,170 Net unamortized loss related to defined benefit pension and other postretirement adjustments arising during the period (383 ) 157 (226 ) Amortization of net actuarial losses 238 (97 ) 141 Amortization of net prior service cost 276 (113 ) 163 Net change in other comprehensive income for defined benefit postretirement plans (2) 131 (53 ) 78 Total other comprehensive income $ 1,952 $ (837 ) $ 1,115 Year Ended December 31, 2015 Pre Tax Tax (Expense) After Tax (Dollars in thousands) Change in fair value of securities available for sale $ (3,757 ) $ 1,434 $ (2,323 ) Less: net security losses reclassified into other noninterest income (expense) (405 ) 165 (240 ) Net change in fair value of securities available for sale (3,352 ) 1,269 (2,083 ) Change in fair value of cash flow hedges (776 ) 299 (477 ) Less: Net cash flow hedge losses reclassified into interest on borrowings expense (1) (2,828 ) 1,152 (1,676 ) Net change in fair value of cash flow hedges 2,052 (853 ) 1,199 Net unamortized gain related to defined benefit pension and other postretirement adjustments arising during the period 438 (193 ) 245 Amortization of net actuarial losses 243 (99 ) 144 Amortization of net prior service cost 294 (119 ) 175 Net change in other comprehensive income for defined benefit postretirement plans (2) 975 (411 ) 564 Total other comprehensive loss $ (325 ) $ 5 $ (320 ) (1) Includes the amortization of the remaining balance of a realized but unrecognized gain, net of tax, from the termination of interest rate swaps in 2009. The original gain of $1.4 million , net of tax, will be recognized in earnings through December 2018 , the original maturity date of the swap. The balance of this gain had amortized to $137,000 , $281,000 , and $427,000 at December 31, 2017 , 2016 , and 2015 , respectively. (2) The amortization of prior service costs is included in the computation of net periodic pension costs as disclosed in Note 15 - Employee Benefit Plans . |
Schedule of Accumulated Other Comprehensive Income (Loss), Net of Tax | Information on the Company's accumulated other comprehensive loss, net of tax, is comprised of the following components as of the periods indicated: Unrealized Gain (Loss) on Securities Unrealized Gain (Loss) on Cash Flow Hedge Deferred Gain on Hedge Transactions Defined Benefit Postretirement Plans Accumulated Other Comprehensive Income (Loss) (Dollars in Thousands) Beginning balance: January 1, 2015 $ 3,389 $ (3,298 ) $ 571 $ (2,794 ) $ (2,132 ) Net change in other comprehensive income (loss) (2,083 ) 1,343 (144 ) 564 (320 ) Ending balance: December 31, 2015 $ 1,306 $ (1,955 ) $ 427 $ (2,230 ) $ (2,452 ) Net change in other comprehensive income (loss) (1,133 ) 2,316 (146 ) 78 1,115 Ending balance: December 31, 2016 $ 173 $ 361 $ 281 $ (2,152 ) $ (1,337 ) Net change in other comprehensive income (loss) (677 ) 587 (144 ) (260 ) (494 ) Ending balance: December 31, 2017 $ (504 ) $ 948 $ 137 $ (2,412 ) $ (1,831 ) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Off-Balance Sheet Financial Instruments | The following table summarizes the above financial instruments at the dates indicated: As of December 31 2017 2016 (Dollars in thousands) Commitments to extend credit $ 2,443,478 $ 2,227,955 Standby letters of credit $ 15,534 $ 18,190 Deferred standby letter of credit fees $ 102 $ 108 |
Schedule of Minimum Future Lease Commitments | The Company leases office space, space for ATM locations, and certain branch locations under noncancelable operating leases. The following is a schedule of minimum future lease payments under such leases as of December 31, 2017 : (Dollars in thousands) 2018 $ 9,023 2019 8,808 2020 7,771 2021 6,508 2022 4,437 Thereafter 8,214 Total future minimum lease commitments $ 44,761 |
REGULATORY CAPITAL REQUIREMEN49
REGULATORY CAPITAL REQUIREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2017 and 2016 are also presented in the table that follows: Actual For Capital To Be Well Capitalized Amount Ratio Amount Ratio Amount Ratio December 31, 2017 (Dollars in thousands) Independent Bank Corp. Total capital (to risk weighted assets) $ 886,807 13.82 % $ 513,398 ≥ 8.0 % N/A N/A Common equity tier 1 capital (to risk weighted assets) $ 718,995 11.20 % $ 288,787 ≥ 4.5 % N/A N/A Tier 1 capital (to risk weighted assets) $ 789,992 12.31 % $ 385,049 ≥ 6.0 % N/A N/A Tier 1 capital (to average assets) $ 789,992 10.04 % $ 314,756 ≥ 4.0 % N/A N/A Rockland Trust Company Total capital (to risk weighted assets) $ 846,147 13.19 % $ 513,175 ≥ 8.0 % $ 641,469 ≥ 10.0 % Common equity tier 1 capital (to risk weighted assets) $ 784,014 12.22 % $ 288,661 ≥ 4.5 % $ 416,955 ≥ 6.5 % Tier 1 capital (to risk weighted assets) $ 784,014 12.22 % $ 384,881 ≥ 6.0 % $ 513,175 ≥ 8.0 % Tier 1 capital (to average assets) $ 784,014 9.97 % $ 314,630 ≥ 4.0 % $ 393,288 ≥ 5.0 % December 31, 2016 (Dollars in thousands) Independent Bank Corp. Total capital (to risk weighted assets) $ 824,265 13.60 % $ 484,942 ≥ 8.0 % N/A N/A Common equity tier 1 capital (to risk weighted assets) $ 656,080 10.82 % $ 272,780 ≥ 4.5 % N/A N/A Tier 1 capital (to risk weighted assets) $ 727,070 11.99 % $ 363,706 ≥ 6.0 % N/A N/A Tier 1 capital (to average assets) $ 727,070 9.77 % $ 297,748 ≥ 4.0 % N/A N/A Rockland Trust Company Total capital (to risk weighted assets) $ 788,320 13.01 % $ 484,834 ≥ 8.0 % $ 606,042 ≥ 10.0 % Common equity tier 1 capital (to risk weighted assets) $ 725,760 11.98 % $ 272,719 ≥ 4.5 % $ 393,927 ≥ 6.5 % Tier 1 capital (to risk weighted assets) $ 725,760 11.98 % $ 363,625 ≥ 6.0 % $ 484,834 ≥ 8.0 % Tier 1 capital (to average assets) $ 725,760 9.76 % $ 297,589 ≥ 4.0 % $ 371,986 ≥ 5.0 % |
PARENT COMPANY FINANCIALS ONLY
PARENT COMPANY FINANCIALS ONLY (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Balance Sheets | BALANCE SHEETS December 31 2017 2016 (Dollars in thousands) Assets Cash(1) $ 48,131 $ 42,596 Investments in subsidiaries(2) 1,010,125 935,778 Prepaid income taxes 786 625 Deferred tax asset 96 216 Derivative instruments(1) 1,535 1,364 Total assets $ 1,060,673 $ 980,579 Liabilities and stockholders’ equity Dividends payable $ 8,786 $ 7,834 Junior subordinated debentures 73,073 73,107 Subordinated debentures 34,682 34,635 Other liabilities 323 313 Total liabilities 116,864 115,889 Stockholders’ equity 943,809 864,690 Total liabilities and stockholders’ equity $ 1,060,673 $ 980,579 (1) Entire balance eliminates in consolidation. (2) $1.0 billion and $933.6 million eliminate in consolidation at December 31, 2017 and 2016 , respectively. |
Schedule of Condensed Statements of Income | STATEMENTS OF INCOME Years Ended December 31 2017 2016 2015 (Dollars in thousands) Income Dividends received from subsidiaries(1) $ 47,006 $ 44,598 $ 38,153 Interest income(2) 50 98 78 Total income 47,056 44,696 38,231 Expenses Interest expense 3,995 5,901 5,769 Other expenses — — 29 Total expenses 3,995 5,901 5,798 Income before income taxes and equity in undistributed income of subsidiaries 43,061 38,795 32,433 Income tax benefit (1,523 ) (1,791 ) (2,301 ) Income of parent company 44,584 40,586 34,734 Equity in undistributed income of subsidiaries 42,620 36,062 30,226 Net income $ 87,204 $ 76,648 $ 64,960 (1) Income of $67,000 , $62,000 and $55,000 was not eliminated in consolidation for the years ended December 31, 2017 , 2016 , and 2015 , respectively. (2) Entire balance eliminated in consolidation. |
Schedule of Condensed Statements of Cash Flows | STATEMENTS OF CASH FLOWS Years Ended December 31 2017 2016 2015 (Dollars in thousands) Cash flows from operating activities Net income $ 87,204 $ 76,648 $ 64,960 Adjustments to reconcile net income to cash provided by operating activities Amortization (accretion) 12 (154 ) (150 ) Deferred income tax expense 51 678 3,266 Change in other assets (99 ) 423 7,488 Change in other liabilities (562 ) (5,532 ) (254 ) Equity in undistributed income of subsidiaries (42,620 ) (36,062 ) (30,226 ) Net cash provided by operating activities 43,986 36,001 45,084 Cash flows used in investing activities Cash paid for acquisitions, net of cash acquired (1) (4,834 ) (950 ) (51,680 ) Net cash used in investing activities (4,834 ) (950 ) (51,680 ) Cash flows used in financing activities Restricted stock awards issued, net of awards surrendered (1,422 ) (696 ) (657 ) Net proceeds from exercise of stock options 214 201 1,367 Proceeds from shares issued under the direct stock purchase plan 1,636 2,323 2,695 Common dividends paid (34,045 ) (29,711 ) (26,172 ) Net cash used in financing activities (33,617 ) (27,883 ) (22,767 ) Net increase (decrease) in cash and cash equivalents 5,535 7,168 (29,363 ) Cash and cash equivalents at the beginning of the year 42,596 35,428 64,791 Cash and cash equivalents at the end of the year $ 48,131 $ 42,596 $ 35,428 (1) The majority of the net assets acquired at the parent company represented each of the acquired companies' investments in their wholly owned subsidiaries, which were eliminated in consolidation at December 31, 2017 , 2016 , and 2015 , respectively. |
SELECTED QUARTERLY FINANCIAL 51
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | First Quarter Second Quarter Third Quarter Fourth Quarter 2017 2016 2017 2016 2017 2016 2017 2016 (Dollars in thousands, except per share data) Interest income $ 64,407 $ 59,741 $ 68,133 $ 61,160 $ 71,778 $ 62,308 $ 72,876 $ 63,428 Interest expense 4,207 4,850 4,378 4,627 4,705 4,640 5,044 4,676 Net interest income 60,200 54,891 63,755 56,533 67,073 57,668 67,832 58,752 Provision for loan losses 600 525 1,050 600 — 950 1,300 4,000 Total noninterest income 18,912 19,155 21,398 21,095 20,770 20,416 21,914 21,762 Total noninterest expenses 48,773 46,482 52,809 47,146 51,310 46,857 51,467 51,637 Provision for income taxes 9,014 8,428 10,731 9,508 12,681 9,793 14,915 7,698 Net income $ 20,725 $ 18,611 $ 20,563 $ 20,374 $ 23,852 $ 20,484 $ 22,064 $ 17,179 Basic earnings per share $ 0.77 $ 0.71 $ 0.75 $ 0.77 $ 0.87 $ 0.78 $ 0.80 $ 0.64 Diluted earnings per share $ 0.76 $ 0.71 $ 0.75 $ 0.77 $ 0.87 $ 0.78 $ 0.80 $ 0.64 Weighted average common shares (basic) 27,029,640 26,275,323 27,257,799 26,304,129 27,436,792 26,324,316 27,445,739 26,710,029 Common stock equivalents 81,283 43,409 74,497 47,885 76,307 53,072 77,615 60,022 Weighted average common shares (diluted) 27,110,923 26,318,732 27,332,296 26,352,014 27,513,099 26,377,388 27,523,354 26,770,051 Unusual or infrequently occurring items Items within noninterest expense Loss on extinguishment of debt $ — $ 437 $ — $ — $ — $ — $ — $ — Merger and acquisition expense 484 334 2,909 206 — 151 — 4,764 Total $ 484 $ 771 $ 2,909 $ 206 $ — $ 151 $ — $ 4,764 Items within provision for income taxes 2017 Tax Act: revaluation of net deferred tax assets $ — $ — $ — $ — $ — $ — $ 1,895 $ — 2017 Tax Act: revaluation of LIHTC investments $ — $ — $ — $ — $ — $ — $ 466 $ — Total $ — $ — $ — $ — $ — $ — $ 2,361 $ — |
TRANSACTIONS WITH RELATED PAR52
TRANSACTIONS WITH RELATED PARTIES Activity of Loans to Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |
Schedule of Related Party Transactions [Table Text Block] | The following information represents annual activity of loans to related parties for the periods indicated: 2017 2016 (Dollars in thousands) Principal balance of loans outstanding at beginning of year $ 22,795 $ 24,653 Loan advances (1) 36,800 1,718 Loan payments/payoffs (7,137 ) (3,576 ) Principal balance of loans outstanding at end of year $ 52,458 $ 22,795 (1) Includes $31.3 million of loans associated with a newly appointed director during the year, which represent the outstanding loan balances at the effective date of appointment. |
SUMMARY OF SIGNIFICANT ACCOUN53
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Core deposit intangibles [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 10 years | |
Noncompete Agreements [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 1 year | |
Noncompete Agreements [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 3 years | |
Customer Lists [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 10 years | |
Lease Agreements [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 3 years | |
Lease Agreements [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 29 years | |
Residential Building [Member] | Lender Concentration Risk [Member] | Loans Receivable [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Concentration Risk, Percentage | 15.40% | 15.40% |
SUMMARY OF SIGNIFICANT ACCOUN54
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) | 12 Months Ended | |
Dec. 31, 2017USD ($)centerbranch | Dec. 31, 2016USD ($) | |
Accounting Policies [Line Items] | ||
Reserve for unfunded loan commitments | $ | $ 972,000 | $ 954,000 |
Maximum [Member] | ||
Accounting Policies [Line Items] | ||
Lease Option Period | 15 years | |
Loans Receivable [Member] | Lender Concentration Risk [Member] | Residential Building [Member] | ||
Accounting Policies [Line Items] | ||
Loans of nonresidential buildings to total loan portfolio | 15.40% | 15.40% |
Full Service Retail Branch [Member] | Bank [Member] | ||
Accounting Policies [Line Items] | ||
Number of branches | branch | 84 | |
Limited Service Retail Branch [Member] | Bank [Member] | ||
Accounting Policies [Line Items] | ||
Number of branches | branch | 2 | |
Commercial Banking Center [Member] | Bank [Member] | ||
Accounting Policies [Line Items] | ||
Number of centers | 13 | |
Investment Management Office [Member] | Bank [Member] | ||
Accounting Policies [Line Items] | ||
Number of centers | 6 | |
Mortgage Lending Center [Member] | Bank [Member] | ||
Accounting Policies [Line Items] | ||
Number of centers | 1 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | May 12, 2017 | Dec. 31, 2016 | Nov. 10, 2016 | Dec. 31, 2015 |
Assets | |||||
Goodwill | $ 231,806 | $ 221,526 | $ 201,083 | ||
Island Bancorp, Inc. [Member] | |||||
Assets | |||||
Cash | $ 11,137 | ||||
Loans | 155,551 | ||||
Premises and equipment | 5,828 | ||||
Goodwill | 10,280 | ||||
Core deposit intangible | 2,964 | ||||
Other assets | 4,629 | ||||
Total assets acquired | 190,389 | ||||
Liabilities | |||||
Deposits | 159,580 | ||||
Borrowings | 2,475 | ||||
Other liabilities | 18 | ||||
Total liabilities assumed | 162,073 | ||||
Purchase price | $ 28,316 | ||||
New England Bancorp, Inc. [Member] | |||||
Assets | |||||
Cash | $ 9,679 | ||||
Loans | 225,731 | ||||
Premises and equipment | 201 | ||||
Goodwill | 20,443 | ||||
Core deposit intangible | 670 | ||||
Other assets | 19,197 | ||||
Total assets acquired | 275,921 | ||||
Liabilities | |||||
Deposits | 175,686 | ||||
Borrowings | 51,150 | ||||
Other liabilities | 7,344 | ||||
Total liabilities assumed | 234,180 | ||||
Purchase price | $ 41,741 |
ACQUISITIONS (Details 2)
ACQUISITIONS (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Island Bancorp, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Net interest income after provision for loan losses | $ 258,017 | $ 227,429 | |
Net income | $ 90,025 | 78,150 | |
New England Bancorp, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Net interest income after provision for loan losses | 228,927 | $ 221,252 | |
Net income | $ 80,411 | $ 65,623 |
ACQUISITIONS (Details Textual)
ACQUISITIONS (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | May 12, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 10, 2016 |
Business Acquisition [Line Items] | |||||||||||||
Acquisition Related Costs | $ 0 | $ 0 | $ 2,909 | $ 484 | $ 4,764 | $ 151 | $ 206 | $ 334 | $ 3,393 | $ 5,455 | $ 10,501 | ||
Island Bancorp, Inc. [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Equity Interest Issued or Issuable Shareholders Option To Receive, Cash Per Share | $ 500 | ||||||||||||
Number of shares of company stock issued for each share of Central common stock (in shares) | 9.525 | ||||||||||||
Value of shares of company stock issued for each share of acquiree stock (in dollars per share) | $ 605.31 | ||||||||||||
Company's closing price per share (in dollars per share) | $ 63.55 | ||||||||||||
Business transaction value | $ 28,300 | ||||||||||||
Cost of acquired entity, percentage cash | 20.00% | ||||||||||||
Business Acquisition, Cost of Acquired Entity, Percentage Stock Consideration | 80.00% | ||||||||||||
Cost of acquired entity, cash paid | $ 4,800 | ||||||||||||
Consideration Transferred, Equity Interests Issued and Issuable | $ 23,500 | ||||||||||||
Increase in acquirer outstanding shares | 369,286 | ||||||||||||
Acquisition Related Costs | 3,200 | ||||||||||||
Loans acquired | $ 155,551 | ||||||||||||
Combination of INDB and Island Bancorp, Inc. [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquisition Related Costs | 2,600 | ||||||||||||
New England Bancorp, Inc. [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Number of shares of company stock issued for each share of Central common stock (in shares) | 0.25 | ||||||||||||
Value of shares of company stock issued for each share of acquiree stock (in dollars per share) | $ 15.14 | ||||||||||||
Company's closing price per share (in dollars per share) | $ 60.55 | ||||||||||||
Business transaction value | $ 41,700 | ||||||||||||
Increase in acquirer outstanding shares | 672,665 | ||||||||||||
Acquisition Related Costs | $ 5,000 | ||||||||||||
Loans acquired | $ 225,731 | ||||||||||||
Combination of INDB and New England Bancorp, Inc. [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquisition Related Costs | $ 6,300 |
SECURITIES (Details 1)
SECURITIES (Details 1) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale Securities: | ||
Amortized Cost | $ 448,219 | $ 363,366 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 3,740 | 3,890 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | (4,461) | (3,612) |
Fair Value | 447,498 | 363,644 |
Held-to-maturity Securities: | ||
Amortized Cost | 497,688 | 487,076 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 2,429 | 3,556 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | (5,923) | (4,982) |
Fair Value | 494,194 | 485,650 |
Available-for-sale Securities and Held-to-maturity Securities: | ||
Amortized Cost | 945,907 | 850,442 |
Gross Unrealized Gains | 6,169 | 7,446 |
Gross Unrealized Losses | (10,384) | (8,594) |
Fair Value | 941,692 | 849,294 |
U.S. Government agency securities | ||
Available-for-sale Securities: | ||
Amortized Cost | 35,475 | 24,006 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 86 | 238 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (131) | 0 |
Fair Value | 35,430 | 24,244 |
U.S. treasury securities [Member] | ||
Held-to-maturity Securities: | ||
Amortized Cost | 1,006 | 1,007 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 29 | 47 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 0 | 0 |
Fair Value | 1,035 | 1,054 |
Agency mortgage-backed securities [Member] | ||
Available-for-sale Securities: | ||
Amortized Cost | 214,934 | 173,268 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 1,897 | 2,852 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (1,067) | (736) |
Fair Value | 215,764 | 175,384 |
Held-to-maturity Securities: | ||
Amortized Cost | 204,768 | 156,088 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 1,791 | 2,274 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | (736) | (858) |
Fair Value | 205,823 | 157,504 |
Agency collateralized mortgage obligations [Member] | ||
Available-for-sale Securities: | ||
Amortized Cost | 124,098 | 101,094 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 78 | 106 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (2,164) | (1,332) |
Fair Value | 122,012 | 99,868 |
Held-to-maturity Securities: | ||
Amortized Cost | 262,998 | 297,445 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 397 | 1,002 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | (4,987) | (3,797) |
Fair Value | 258,408 | 294,650 |
State, county, and municipal securities [Member] | ||
Available-for-sale Securities: | ||
Amortized Cost | 2,237 | 3,743 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 37 | 50 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Fair Value | 2,274 | 3,793 |
Single issuer trust preferred securities issued by banks [Member] | ||
Available-for-sale Securities: | ||
Amortized Cost | 2,012 | 2,311 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 4 | 3 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | (3) |
Fair Value | 2,016 | 2,311 |
Held-to-maturity Securities: | ||
Amortized Cost | 1,500 | 1,500 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 29 | 44 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 0 | 0 |
Fair Value | 1,529 | 1,544 |
Pooled trust preferred securities issued by banks and insurers | ||
Available-for-sale Securities: | ||
Amortized Cost | 2,179 | 2,200 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (539) | (616) |
Fair Value | 1,640 | 1,584 |
Small Business Administration Pooled Securities [Member] | ||
Available-for-sale Securities: | ||
Amortized Cost | 47,852 | 37,561 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 44 | 0 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (118) | (372) |
Fair Value | 47,778 | 37,189 |
Held-to-maturity Securities: | ||
Amortized Cost | 27,416 | 31,036 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 183 | 189 |
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | (200) | (327) |
Fair Value | 27,399 | 30,898 |
Marketable securities [Member] | ||
Available-for-sale Securities: | ||
Amortized Cost | 19,432 | 19,183 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 1,594 | 641 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | (442) | (553) |
Fair Value | $ 20,584 | $ 19,271 |
SECURITIES (Details 3)
SECURITIES (Details 3) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available for Sale, Amortized Cost | ||
Amortized Cost | $ 448,219 | $ 363,366 |
Available for Sale, Fair Value | ||
Securities - available for sale | 447,498 | 363,644 |
Held to Maturity, Amortized Cost | ||
Amortized Cost | 497,688 | 487,076 |
Held to Maturity, Fair Value | ||
Fair Value | 494,194 | $ 485,650 |
Debt Securities [Member] | ||
Available for Sale, Amortized Cost | ||
Due in one year or less | 3,213 | |
Due after one year to five years | 49,241 | |
Due after five to ten years | 107,417 | |
Due after ten years | 268,916 | |
Amortized Cost | 428,787 | |
Available for Sale, Fair Value | ||
Due in one year or less | 3,215 | |
Due in one year or less | 49,312 | |
Due after five to ten years | 107,402 | |
Due after ten years | 266,985 | |
Securities - available for sale | 426,914 | |
Held to Maturity, Amortized Cost | ||
Due in one year or less | 0 | |
Due after one year to five years | 15,636 | |
Due after five to ten years | 16,801 | |
Due after ten years | 465,251 | |
Amortized Cost | 497,688 | |
Held to Maturity, Fair Value | ||
Due in one year or less | 0 | |
Due after one year to five years | 15,711 | |
Due after five to ten years | 17,098 | |
Due after ten years | 461,385 | |
Fair Value | 494,194 | |
Marketable securities [Member] | ||
Available for Sale, Amortized Cost | ||
Available-for-sale Equity Securities, Amortized Cost Basis | 19,432 | |
Available for Sale, Fair Value | ||
Assets Designated to Closed Block, Equity Securities, Available-for-sale, at Fair Value | 20,584 | |
Held to Maturity, Amortized Cost | ||
Amortized Cost | 0 | |
Held to Maturity, Fair Value | ||
Fair Value | $ 0 |
SECURITIES (Details 4)
SECURITIES (Details 4) $ in Thousands | Dec. 31, 2017USD ($)holding | Dec. 31, 2016USD ($)holding |
Summary of gross unrealized losses and fair value of investments | ||
No of holdings | holding | 163 | 121 |
Fair value, less than 12 months | $ 475,739 | $ 444,471 |
Fair value, 12 months or longer | 193,298 | 56,356 |
Fair value, Total | 669,037 | 500,827 |
Unrealized losses, Total | (10,384) | (8,594) |
Unrealized loss position for available for sale and held to maturity securities in a continuous loss position for less than 12 months | (3,465) | (5,510) |
Unrealized loss position for available for sale and held to maturity securities in a continuous loss position for more than 12 months | $ (6,919) | $ (3,084) |
US Government Agencies Debt Securities [Member] | ||
Summary of gross unrealized losses and fair value of investments | ||
No of holdings | holding | 4 | |
Fair value, less than 12 months | $ 24,343 | |
Fair value, 12 months or longer | 0 | |
Fair value, Total | 24,343 | |
Unrealized losses, Total | (131) | |
Unrealized loss position for available for sale and held to maturity securities in a continuous loss position for less than 12 months | $ (131) | |
Agency mortgage-backed securities [Member] | ||
Summary of gross unrealized losses and fair value of investments | ||
No of holdings | holding | 84 | 57 |
Fair value, less than 12 months | $ 235,411 | $ 137,949 |
Fair value, 12 months or longer | 14,886 | 0 |
Fair value, Total | 250,297 | 137,949 |
Unrealized losses, Total | (1,803) | (1,594) |
Unrealized loss position for available for sale and held to maturity securities in a continuous loss position for less than 12 months | (1,493) | (1,594) |
Unrealized loss position for available for sale and held to maturity securities in a continuous loss position for more than 12 months | $ (310) | $ 0 |
Agency collateralized mortgage obligations [Member] | ||
Summary of gross unrealized losses and fair value of investments | ||
No of holdings | holding | 42 | 32 |
Fair value, less than 12 months | $ 178,142 | $ 243,051 |
Fair value, 12 months or longer | 159,506 | 47,403 |
Fair value, Total | 337,648 | 290,454 |
Unrealized losses, Total | (7,151) | (5,129) |
Unrealized loss position for available for sale and held to maturity securities in a continuous loss position for less than 12 months | (1,579) | (3,140) |
Unrealized loss position for available for sale and held to maturity securities in a continuous loss position for more than 12 months | $ (5,572) | $ (1,989) |
Single issuer trust preferred securities issued by banks and insurers | ||
Summary of gross unrealized losses and fair value of investments | ||
No of holdings | holding | 1 | |
Fair value, less than 12 months | $ 0 | |
Fair value, 12 months or longer | 1,036 | |
Fair value, Total | 1,036 | |
Unrealized losses, Total | (3) | |
Unrealized loss position for available for sale and held to maturity securities in a continuous loss position for less than 12 months | 0 | |
Unrealized loss position for available for sale and held to maturity securities in a continuous loss position for more than 12 months | $ (3) | |
Pooled trust preferred securities issued by banks and insurers | ||
Summary of gross unrealized losses and fair value of investments | ||
No of holdings | holding | 1 | 1 |
Fair value, less than 12 months | $ 0 | $ 0 |
Fair value, 12 months or longer | 1,640 | 1,583 |
Fair value, Total | 1,640 | 1,583 |
Unrealized losses, Total | (539) | (616) |
Unrealized loss position for available for sale and held to maturity securities in a continuous loss position for less than 12 months | 0 | 0 |
Unrealized loss position for available for sale and held to maturity securities in a continuous loss position for more than 12 months | $ (539) | $ (616) |
Small Business Administration Pooled Securities [Member] | ||
Summary of gross unrealized losses and fair value of investments | ||
No of holdings | holding | 4 | 5 |
Fair value, less than 12 months | $ 34,553 | $ 59,846 |
Fair value, 12 months or longer | 9,647 | 0 |
Fair value, Total | 44,200 | 59,846 |
Unrealized losses, Total | (318) | (699) |
Unrealized loss position for available for sale and held to maturity securities in a continuous loss position for less than 12 months | (223) | $ (699) |
Unrealized loss position for available for sale and held to maturity securities in a continuous loss position for more than 12 months | $ (95) | |
Marketable securities [Member] | ||
Summary of gross unrealized losses and fair value of investments | ||
No of holdings | holding | 28 | 25 |
Fair value, less than 12 months | $ 3,290 | $ 3,625 |
Fair value, 12 months or longer | 7,619 | 6,334 |
Fair value, Total | 10,909 | 9,959 |
Unrealized losses, Total | (442) | (553) |
Unrealized loss position for available for sale and held to maturity securities in a continuous loss position for less than 12 months | (39) | (77) |
Unrealized loss position for available for sale and held to maturity securities in a continuous loss position for more than 12 months | $ (403) | $ (476) |
SECURITIES (Details 7)
SECURITIES (Details 7) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Net impairment losses recognized in earnings on securities | $ 0 | $ 0 | $ 0 |
SECURITIES (Details 8)
SECURITIES (Details 8) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Less | |
Securities sold during the period | $ 10,000 |
Balance at end of period | $ 0 |
SECURITIES (Details Textual)
SECURITIES (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Trading Securities | $ 1,324,000 | $ 804,000 | |
Callable securities in investment portfolio | 9,400,000 | ||
Investment securities pledged | 547,200,000 | 482,100,000 | |
Investments in obligations of individual states, counties or municipalities which exceed 10% of equity | 0 | ||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 0 | 0 | $ 0 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | $ 0 | $ 0 | $ 0 |
Allowance Allocations (Details
Allowance Allocations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||
Beginning balance | $ 61,566 | $ 55,825 | $ 61,566 | $ 55,825 | $ 55,100 | |||||||
Charge-offs | (6,209) | (3,472) | (4,918) | |||||||||
Recoveries | 2,336 | 3,138 | 4,143 | |||||||||
Provision (benefit) | $ 1,300 | $ 0 | $ 1,050 | 600 | $ 4,000 | $ 950 | $ 600 | 525 | 2,950 | 6,075 | 1,500 | |
Ending balance | 60,643 | 61,566 | 60,643 | 61,566 | 55,825 | |||||||
Ending balance: individually evaluated for impairment | 1,342 | 5,214 | 1,342 | 5,214 | 1,930 | |||||||
Ending balance: collectively evaluated for impairment | 59,301 | 56,352 | 59,301 | 56,352 | 53,895 | |||||||
Financing receivables ending balance: | ||||||||||||
Financing Receivable, Collectively Evaluated for Impairment | 6,269,729 | 5,903,916 | 6,269,729 | 5,903,916 | 5,475,716 | |||||||
Individually evaluated for impairment | 72,801 | 77,297 | 72,801 | 77,297 | 51,410 | |||||||
Financing Receivable, Net | 4,539,256 | 4,355,968 | 4,539,256 | 4,355,968 | ||||||||
Loans Receivable, Gross, Commercial and Industrial | 888,528 | 902,053 | 888,528 | 902,053 | ||||||||
Loans Receivable, Gross, Commercial, Mortgage | 3,116,561 | 3,010,798 | 3,116,561 | 3,010,798 | ||||||||
Total loans | 6,355,553 | 5,999,605 | 6,355,553 | 5,999,605 | 5,547,721 | [1] | ||||||
Loans and Leases Receivable, Gross, Consumer, Other | 9,880 | 11,064 | 9,880 | 11,064 | ||||||||
Loans Receivable, Gross, Commercial, Construction | 401,797 | 320,391 | 401,797 | 320,391 | ||||||||
Small Business | 132,370 | 122,726 | 132,370 | 122,726 | ||||||||
Loans and Leases Receivable, Gross, Consumer, Mortgage | 754,329 | 644,426 | 754,329 | 644,426 | ||||||||
Commercial and Industrial [Member] | ||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||
Beginning balance | 16,921 | 13,802 | 16,921 | 13,802 | 15,573 | |||||||
Charge-offs | (3,891) | (593) | (2,010) | |||||||||
Recoveries | 615 | 859 | 1,593 | |||||||||
Provision (benefit) | (389) | 2,853 | (1,354) | |||||||||
Ending balance | 13,256 | 16,921 | 13,256 | 16,921 | 13,802 | |||||||
Ending balance: individually evaluated for impairment | 10 | 3,661 | 10 | 3,661 | 183 | |||||||
Ending balance: collectively evaluated for impairment | 13,246 | 13,260 | 13,246 | 13,260 | 13,619 | |||||||
Financing receivables ending balance: | ||||||||||||
Financing Receivable, Collectively Evaluated for Impairment | 853,885 | 862,875 | 853,885 | 862,875 | 838,129 | |||||||
Individually evaluated for impairment | 34,643 | 39,178 | 34,643 | 39,178 | 5,147 | |||||||
Financing Receivable, Net | 888,528 | 902,053 | 888,528 | 902,053 | ||||||||
Total loans | 888,528 | 902,053 | 888,528 | 902,053 | 843,276 | |||||||
Commercial Real Estate [Member] | ||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||
Beginning balance | 30,369 | 27,327 | 30,369 | 27,327 | 25,873 | |||||||
Charge-offs | (39) | (414) | (330) | |||||||||
Recoveries | 385 | 564 | 1,073 | |||||||||
Provision (benefit) | 738 | 2,892 | 711 | |||||||||
Ending balance | 31,453 | 30,369 | 31,453 | 30,369 | 27,327 | |||||||
Ending balance: individually evaluated for impairment | 42 | 196 | 42 | 196 | 204 | |||||||
Ending balance: collectively evaluated for impairment | 31,411 | 30,173 | 31,411 | 30,173 | 27,123 | |||||||
Financing receivables ending balance: | ||||||||||||
Financing Receivable, Collectively Evaluated for Impairment | 3,093,945 | 2,983,642 | 3,093,945 | 2,983,642 | 2,619,294 | |||||||
Individually evaluated for impairment | 16,638 | 16,813 | 16,638 | 16,813 | 22,986 | |||||||
Financing Receivable, Net | 3,116,561 | 3,010,798 | 3,116,561 | 3,010,798 | ||||||||
Total loans | 3,116,561 | 3,010,798 | 3,116,561 | 3,010,798 | 2,653,434 | |||||||
Construction Loans [Member] | ||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||
Beginning balance | 4,522 | 5,366 | 4,522 | 5,366 | 3,945 | |||||||
Charge-offs | 0 | 0 | 0 | |||||||||
Recoveries | 0 | 0 | ||||||||||
Provision (benefit) | 1,176 | (844) | 1,421 | |||||||||
Ending balance | 5,698 | 4,522 | 5,698 | 4,522 | 5,366 | |||||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | |||||||
Ending balance: collectively evaluated for impairment | 5,698 | 4,522 | 5,698 | 4,522 | 5,366 | |||||||
Financing receivables ending balance: | ||||||||||||
Financing Receivable, Collectively Evaluated for Impairment | 401,797 | 320,391 | 401,797 | 320,391 | 373,064 | |||||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 304 | |||||||
Financing Receivable, Net | 401,797 | 320,391 | 401,797 | 320,391 | ||||||||
Total loans | 401,797 | 320,391 | 401,797 | 320,391 | 373,368 | |||||||
Small Business [Member] | ||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||
Beginning balance | 1,502 | 1,264 | 1,502 | 1,264 | 1,171 | |||||||
Charge-offs | (302) | (228) | (267) | |||||||||
Recoveries | 114 | 195 | 264 | |||||||||
Provision (benefit) | 263 | 271 | 96 | |||||||||
Ending balance | 1,577 | 1,502 | 1,577 | 1,502 | 1,264 | |||||||
Ending balance: individually evaluated for impairment | 1 | 8 | 1 | 8 | 4 | |||||||
Ending balance: collectively evaluated for impairment | 1,576 | 1,494 | 1,576 | 1,494 | 1,260 | |||||||
Financing receivables ending balance: | ||||||||||||
Financing Receivable, Collectively Evaluated for Impairment | 131,667 | 121,855 | 131,667 | 121,855 | 95,225 | |||||||
Individually evaluated for impairment | 703 | 871 | 703 | 871 | 1,021 | |||||||
Financing Receivable, Net | 132,370 | 122,726 | 132,370 | 122,726 | ||||||||
Total loans | 132,370 | 122,726 | 132,370 | 122,726 | 96,246 | |||||||
Residential Real Estate [Member] | ||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||
Beginning balance | 2,621 | 2,590 | 2,621 | 2,590 | 2,834 | |||||||
Charge-offs | (207) | (28) | (285) | |||||||||
Recoveries | 31 | 299 | 133 | |||||||||
Provision (benefit) | 377 | (240) | (92) | |||||||||
Ending balance | 2,822 | 2,621 | 2,822 | 2,621 | 2,590 | |||||||
Ending balance: individually evaluated for impairment | 1,007 | 1,086 | 1,007 | 1,086 | 1,278 | |||||||
Ending balance: collectively evaluated for impairment | 1,815 | 1,535 | 1,815 | 1,535 | 1,312 | |||||||
Financing receivables ending balance: | ||||||||||||
Financing Receivable, Collectively Evaluated for Impairment | 733,809 | 622,392 | 733,809 | 622,392 | 614,014 | |||||||
Individually evaluated for impairment | 13,684 | 14,175 | 13,684 | 14,175 | 15,405 | |||||||
Total loans | 754,329 | 644,426 | 754,329 | 644,426 | 638,606 | |||||||
Home Equity [Member] | ||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||
Beginning balance | 5,238 | 4,889 | 5,238 | 4,889 | 4,956 | |||||||
Charge-offs | (276) | (602) | (710) | |||||||||
Recoveries | 198 | 141 | 356 | |||||||||
Provision (benefit) | 230 | 810 | 287 | |||||||||
Ending balance | 5,390 | 5,238 | 5,390 | 5,238 | 4,889 | |||||||
Ending balance: individually evaluated for impairment | 265 | 242 | 265 | 242 | 238 | |||||||
Ending balance: collectively evaluated for impairment | 5,125 | 4,996 | 5,125 | 4,996 | 4,651 | |||||||
Financing receivables ending balance: | ||||||||||||
Financing Receivable, Collectively Evaluated for Impairment | 1,045,053 | 982,095 | 1,045,053 | 982,095 | 921,563 | |||||||
Individually evaluated for impairment | 6,826 | 5,863 | 6,826 | 5,863 | 5,989 | |||||||
Total loans | 1,052,088 | 988,147 | 1,052,088 | 988,147 | 927,803 | |||||||
Consumer Portfolio Segment [Member] | ||||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||||||||
Beginning balance | $ 393 | $ 587 | 393 | 587 | 748 | |||||||
Charge-offs | (1,494) | (1,607) | (1,316) | |||||||||
Recoveries | 993 | 1,080 | 724 | |||||||||
Provision (benefit) | 555 | 333 | 431 | |||||||||
Ending balance | 447 | 393 | 447 | 393 | 587 | |||||||
Ending balance: individually evaluated for impairment | 17 | 21 | 17 | 21 | 23 | |||||||
Ending balance: collectively evaluated for impairment | 430 | 372 | 430 | 372 | 564 | |||||||
Financing receivables ending balance: | ||||||||||||
Financing Receivable, Collectively Evaluated for Impairment | 9,573 | 10,666 | 9,573 | 10,666 | 14,427 | |||||||
Individually evaluated for impairment | 307 | 397 | 307 | 397 | 558 | |||||||
Total loans | 9,880 | 11,064 | 9,880 | 11,064 | 14,988 | |||||||
Receivables Acquired with Deteriorated Credit Quality [Member] | ||||||||||||
Financing receivables ending balance: | ||||||||||||
Financing Receivable, Net | 13,023 | 18,392 | 13,023 | 18,392 | 20,595 | |||||||
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial and Industrial [Member] | ||||||||||||
Financing receivables ending balance: | ||||||||||||
Financing Receivable, Net | 0 | 0 | 0 | 0 | 0 | |||||||
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial Real Estate [Member] | ||||||||||||
Financing receivables ending balance: | ||||||||||||
Financing Receivable, Net | 5,978 | 10,343 | 5,978 | 10,343 | 11,154 | |||||||
Receivables Acquired with Deteriorated Credit Quality [Member] | Construction Loans [Member] | ||||||||||||
Financing receivables ending balance: | ||||||||||||
Financing Receivable, Net | 0 | 0 | 0 | 0 | 0 | |||||||
Receivables Acquired with Deteriorated Credit Quality [Member] | Small Business [Member] | ||||||||||||
Financing receivables ending balance: | ||||||||||||
Financing Receivable, Net | 0 | 0 | 0 | 0 | 0 | |||||||
Receivables Acquired with Deteriorated Credit Quality [Member] | Residential Real Estate [Member] | ||||||||||||
Financing receivables ending balance: | ||||||||||||
Financing Receivable, Net | 6,836 | 7,859 | 6,836 | 7,859 | 9,187 | |||||||
Receivables Acquired with Deteriorated Credit Quality [Member] | Home Equity [Member] | ||||||||||||
Financing receivables ending balance: | ||||||||||||
Financing Receivable, Net | 209 | 189 | 209 | 189 | 251 | |||||||
Receivables Acquired with Deteriorated Credit Quality [Member] | Consumer Portfolio Segment [Member] | ||||||||||||
Financing receivables ending balance: | ||||||||||||
Financing Receivable, Net | $ 0 | $ 1 | $ 0 | $ 1 | $ 3 | |||||||
[1] | The amount of net deferred costs on originated loans included in the ending balance was $6.1 million, $5.1 million, and $4.3 million at December 31, 2017, 2016, and 2015, respectively. Net unamortized discounts on acquired loans not deemed to be PCI included in the ending balance was $9.4 million, $8.6 million, and $6.6 million at December 31, 2017, 2016, and 2015, respectively. |
Internal Risk Rating Categories
Internal Risk Rating Categories for Commercial Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | $ 4,539,256 | $ 4,355,968 |
Commercial and Industrial [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 888,528 | 902,053 |
Commercial Real Estate [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 3,116,561 | 3,010,798 |
Construction Loans [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 401,797 | 320,391 |
Small Business [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 132,370 | 122,726 |
Pass [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 4,345,232 | 4,097,798 |
Pass [Member] | Commercial and Industrial [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 806,331 | 783,825 |
Pass [Member] | Commercial Real Estate [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 3,007,672 | 2,876,570 |
Pass [Member] | Construction Loans [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 400,964 | 317,099 |
Pass [Member] | Small Business [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 130,265 | 120,304 |
Potential weakness [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 87,822 | 134,039 |
Potential weakness [Member] | Commercial and Industrial [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 16,563 | 46,176 |
Potential weakness [Member] | Commercial Real Estate [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 69,788 | 84,641 |
Potential weakness [Member] | Construction Loans [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 0 | 1,363 |
Potential weakness [Member] | Small Business [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 1,471 | 1,859 |
Definite weakness [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 99,516 | 121,640 |
Definite weakness [Member] | Commercial and Industrial [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 59,415 | 71,991 |
Definite weakness [Member] | Commercial Real Estate [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 38,637 | 47,164 |
Definite weakness [Member] | Construction Loans [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 833 | 1,929 |
Definite weakness [Member] | Small Business [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 631 | 556 |
Parital loss probable [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 6,686 | 2,491 |
Parital loss probable [Member] | Commercial and Industrial [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 6,219 | 61 |
Parital loss probable [Member] | Commercial Real Estate [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 464 | 2,423 |
Parital loss probable [Member] | Construction Loans [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 0 | 0 |
Parital loss probable [Member] | Small Business [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 3 | 7 |
Definite loss [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 0 | 0 |
Definite loss [Member] | Commercial and Industrial [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 0 | 0 |
Definite loss [Member] | Commercial Real Estate [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 0 | 0 |
Definite loss [Member] | Construction Loans [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | 0 | 0 |
Definite loss [Member] | Small Business [Member] | ||
Internal risk-rating categories for the Company's commercial portfolio | ||
Financing Receivable, Net | $ 0 | $ 0 |
Weighted Average FICO Scores &
Weighted Average FICO Scores & weighted Average Combined LTV Ratios (Details) - score | Dec. 31, 2017 | Dec. 31, 2016 | |
Residential Portfolio Segment [Member] | |||
Weighted average FICO scores and the weighted average combined LTV Ratio | |||
FICO score (re-scored) | [1] | 745 | 743 |
Financing Receivable With Credit Quality Of Loan Based Upon the Weighted Average Loan-To-Value Ratio | 59.20% | 63.20% | |
Home Equity [Member] | |||
Weighted average FICO scores and the weighted average combined LTV Ratio | |||
FICO score (re-scored) | 766 | 767 | |
Financing Receivable With Credit Quality Of Loan Based Upon the Weighted Average Loan-To-Value Ratio | 50.10% | 55.90% | |
[1] | The average FICO scores at December 31, 2017 are based upon rescores available from August 2017 and origination score data for loans booked between September and December 2017. The average FICO scores at December 31, 2016 are based upon rescores available from November 2016 and origination score data for loans booked in December 2016. |
Summary of Nonaccrual Loans (De
Summary of Nonaccrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable Impaired [Line Items] | ||
TDRs on nonaccrual status | $ 6,067 | $ 5,199 |
Financing Receivable, Recorded Investment, Nonaccrual Status | 49,630 | 57,405 |
Commercial and Industrial [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 32,055 | 37,455 |
Commercial Real Estate [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 3,123 | 6,266 |
Small Business [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 230 | 302 |
Residential Real Estate [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 8,129 | 7,782 |
Home Equity [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 6,022 | 5,553 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 71 | $ 47 |
Age Analysis of Past Due Financ
Age Analysis of Past Due Financing receivables (Details) $ in Thousands | Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | Dec. 31, 2015USD ($) | |
Age Analysis of Past Due Financing Receivables | ||||
Number of Loans 30-59 Days | loan | 319 | 301 | ||
Number of Loans 60-89 Days | loan | 48 | 72 | ||
Number of Loans 90 Days or More | loan | 92 | 91 | ||
Number of Loans Total Past Due | loan | 459 | 464 | ||
Principal Balance Total Past Due | $ 48,746 | $ 19,911 | ||
Current | 6,306,807 | 5,979,694 | ||
Total loans | 6,355,553 | 5,999,605 | $ 5,547,721 | [1] |
Recorded Investment >90 Days and Accruing | $ 8 | $ 2 | ||
Commercial and Industrial [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Number of Loans 30-59 Days | loan | 2 | 8 | ||
Number of Loans 60-89 Days | loan | 2 | 32 | ||
Number of Loans 90 Days or More | loan | 14 | 6 | ||
Number of Loans Total Past Due | loan | 18 | 46 | ||
Principal Balance Total Past Due | $ 32,572 | $ 2,833 | ||
Current | 855,956 | 899,220 | ||
Total loans | 888,528 | 902,053 | 843,276 | |
Recorded Investment >90 Days and Accruing | $ 0 | $ 0 | ||
Commercial Real Estate [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Number of Loans 30-59 Days | loan | 7 | 5 | ||
Number of Loans 60-89 Days | loan | 0 | 8 | ||
Number of Loans 90 Days or More | loan | 9 | 8 | ||
Number of Loans Total Past Due | loan | 16 | 21 | ||
Principal Balance Total Past Due | $ 4,853 | $ 6,580 | ||
Current | 3,111,708 | 3,004,218 | ||
Total loans | 3,116,561 | 3,010,798 | 2,653,434 | |
Recorded Investment >90 Days and Accruing | $ 0 | $ 0 | ||
Construction Loans [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Number of Loans 30-59 Days | loan | 0 | 0 | ||
Number of Loans 60-89 Days | loan | 0 | 0 | ||
Number of Loans 90 Days or More | loan | 0 | 0 | ||
Number of Loans Total Past Due | loan | 0 | 0 | ||
Principal Balance Total Past Due | $ 0 | $ 0 | ||
Current | 401,797 | 320,391 | ||
Total loans | 401,797 | 320,391 | 373,368 | |
Recorded Investment >90 Days and Accruing | $ 0 | $ 0 | ||
Small Business [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Number of Loans 30-59 Days | loan | 17 | 9 | ||
Number of Loans 60-89 Days | loan | 11 | 0 | ||
Number of Loans 90 Days or More | loan | 10 | 19 | ||
Number of Loans Total Past Due | loan | 38 | 28 | ||
Principal Balance Total Past Due | $ 540 | $ 463 | ||
Current | 131,830 | 122,263 | ||
Total loans | 132,370 | 122,726 | 96,246 | |
Recorded Investment >90 Days and Accruing | $ 0 | $ 0 | ||
Residential Real Estate [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Number of Loans 30-59 Days | loan | 6 | 11 | ||
Number of Loans 60-89 Days | loan | 13 | 9 | ||
Number of Loans 90 Days or More | loan | 22 | 27 | ||
Number of Loans Total Past Due | loan | 41 | 47 | ||
Principal Balance Total Past Due | $ 6,726 | $ 6,734 | ||
Current | 747,603 | 637,692 | ||
Total loans | 754,329 | 644,426 | 638,606 | |
Recorded Investment >90 Days and Accruing | $ 0 | $ 0 | ||
Home Equity [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Number of Loans 30-59 Days | loan | 22 | 19 | ||
Number of Loans 60-89 Days | loan | 6 | 11 | ||
Number of Loans 90 Days or More | loan | 20 | 16 | ||
Number of Loans Total Past Due | loan | 48 | 46 | ||
Principal Balance Total Past Due | $ 3,786 | $ 3,093 | ||
Current | 1,048,302 | 985,054 | ||
Total loans | 1,052,088 | 988,147 | 927,803 | |
Recorded Investment >90 Days and Accruing | $ 0 | $ 0 | ||
Consumer Portfolio Segment [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Number of Loans 30-59 Days | loan | 265 | 249 | ||
Number of Loans 60-89 Days | loan | 16 | 12 | ||
Number of Loans 90 Days or More | loan | 17 | 15 | ||
Number of Loans Total Past Due | loan | 298 | 276 | ||
Principal Balance Total Past Due | $ 269 | $ 208 | ||
Current | 9,611 | 10,856 | ||
Total loans | 9,880 | 11,064 | $ 14,988 | |
Recorded Investment >90 Days and Accruing | 8 | 2 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Principal Balance Total Past Due | 5,971 | 4,519 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial and Industrial [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Principal Balance Total Past Due | 195 | 100 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Real Estate [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Principal Balance Total Past Due | 3,060 | 1,518 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Construction Loans [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Principal Balance Total Past Due | 0 | 0 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Small Business [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Principal Balance Total Past Due | 339 | 323 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Real Estate [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Principal Balance Total Past Due | 870 | 1,277 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Home Equity [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Principal Balance Total Past Due | 1,310 | 1,117 | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Principal Balance Total Past Due | 197 | 184 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Principal Balance Total Past Due | 3,377 | 4,944 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial and Industrial [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Principal Balance Total Past Due | 370 | 253 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Real Estate [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Principal Balance Total Past Due | 0 | 1,957 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Construction Loans [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Principal Balance Total Past Due | 0 | 0 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Small Business [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Principal Balance Total Past Due | 144 | 0 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Real Estate [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Principal Balance Total Past Due | 2,385 | 1,950 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Home Equity [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Principal Balance Total Past Due | 451 | 767 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Principal Balance Total Past Due | 27 | 17 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Principal Balance Total Past Due | 39,398 | 10,448 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial and Industrial [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Principal Balance Total Past Due | 32,007 | 2,480 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Real Estate [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Principal Balance Total Past Due | 1,793 | 3,105 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Construction Loans [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Principal Balance Total Past Due | 0 | 0 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Small Business [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Principal Balance Total Past Due | 57 | 140 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential Real Estate [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Principal Balance Total Past Due | 3,471 | 3,507 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Home Equity [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Principal Balance Total Past Due | 2,025 | 1,209 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||||
Age Analysis of Past Due Financing Receivables | ||||
Principal Balance Total Past Due | $ 45 | $ 7 | ||
[1] | The amount of net deferred costs on originated loans included in the ending balance was $6.1 million, $5.1 million, and $4.3 million at December 31, 2017, 2016, and 2015, respectively. Net unamortized discounts on acquired loans not deemed to be PCI included in the ending balance was $9.4 million, $8.6 million, and $6.6 million at December 31, 2017, 2016, and 2015, respectively. |
TDR's and Other Pertinent Infor
TDR's and Other Pertinent Information (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Summary of Troubled Debt Restructurings and other pertinent information | ||
TDRs on accrual status | $ 25,852 | $ 27,093 |
TDRs on nonaccrual status | 6,067 | 5,199 |
Total TDRs | 31,919 | 32,292 |
Amount of specific reserves included in the allowance for loan loss associated with TDRs: | 1,342 | 1,417 |
Additional commitments to lend to a borrower who has been a party to a TDR: | $ 487 | $ 1,378 |
Modification which Occurred Dur
Modification which Occurred During the Period & Change in Recorded Investment(Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)contract | Dec. 31, 2016USD ($)contract | Dec. 31, 2015USD ($)contract | |
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | contract | 54 | 50 | 44 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 8,130 | $ 7,663 | $ 6,085 |
TROUBLED DEBT RESTRUCTURINGS: | |||
Post-Modification Outstanding Recorded Investment | $ 8,175 | $ 7,705 | $ 6,112 |
Consumer Portfolio Segment [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | contract | 6 | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 153 | ||
TROUBLED DEBT RESTRUCTURINGS: | |||
Post-Modification Outstanding Recorded Investment | $ 153 | ||
Home Equity Line of Credit [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | contract | 17 | 13 | 8 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 1,985 | $ 932 | $ 694 |
TROUBLED DEBT RESTRUCTURINGS: | |||
Post-Modification Outstanding Recorded Investment | $ 1,988 | $ 932 | $ 694 |
Residential Real Estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | contract | 10 | 8 | 8 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 1,284 | $ 1,808 | $ 843 |
TROUBLED DEBT RESTRUCTURINGS: | |||
Post-Modification Outstanding Recorded Investment | $ 1,326 | $ 1,850 | $ 870 |
Small Business [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | contract | 9 | 3 | 9 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 369 | $ 188 | $ 293 |
TROUBLED DEBT RESTRUCTURINGS: | |||
Post-Modification Outstanding Recorded Investment | $ 369 | $ 188 | $ 293 |
Commercial Real Estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | contract | 6 | 10 | 6 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 2,705 | $ 2,959 | $ 2,941 |
TROUBLED DEBT RESTRUCTURINGS: | |||
Post-Modification Outstanding Recorded Investment | $ 2,705 | $ 2,959 | $ 2,941 |
Commercial And Industrial [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Financing Receivable, Modifications, Number of Contracts | contract | 12 | 10 | 13 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 1,787 | $ 1,623 | $ 1,314 |
TROUBLED DEBT RESTRUCTURINGS: | |||
Post-Modification Outstanding Recorded Investment | $ 1,787 | $ 1,623 | $ 1,314 |
Post-modification balance of TD
Post-modification balance of TDRs Listed by type of Modification(Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loans, Allowance for Loan Losses and Credit Quality [Abstract] | |||
Extended maturity | $ 5,881 | $ 5,044 | $ 2,936 |
Adjusted interest rate | 0 | 92 | |
Combination rate and maturity | 568 | 1,035 | 2,199 |
Court ordered concession | 1,726 | 1,534 | 977 |
Total | $ 8,175 | $ 7,705 | $ 6,112 |
TDR's that have subsequent defa
TDR's that have subsequent default (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)contract | Dec. 31, 2016USD ($)contract | Dec. 31, 2015USD ($)contract | |
TROUBLED DEBT RESTRUCTURINGS THAT SUBSEQUENTLY DEFAULTED: | |||
Recorded Investment | $ | $ 122 | $ 249 | $ 1,267 |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | contract | 1 | 1 | 7 |
Commercial And Industrial [Member] | |||
TROUBLED DEBT RESTRUCTURINGS THAT SUBSEQUENTLY DEFAULTED: | |||
Recorded Investment | $ | $ 122 | $ 0 | $ 339 |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | contract | 1 | 0 | 3 |
Commercial Real Estate [Member] | |||
TROUBLED DEBT RESTRUCTURINGS THAT SUBSEQUENTLY DEFAULTED: | |||
Recorded Investment | $ | $ 0 | $ 249 | $ 502 |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | contract | 0 | 1 | 1 |
Residential Real Estate [Member] | |||
TROUBLED DEBT RESTRUCTURINGS THAT SUBSEQUENTLY DEFAULTED: | |||
Recorded Investment | $ | $ 0 | $ 326 | |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | contract | 0 | 2 | |
Home Equity Line of Credit [Member] | |||
TROUBLED DEBT RESTRUCTURINGS THAT SUBSEQUENTLY DEFAULTED: | |||
Recorded Investment | $ | $ 0 | $ 0 | $ 100 |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | contract | 0 | 0 | 1 |
Impaired Loan Information by Po
Impaired Loan Information by Portfolio (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Impaired loans by loan portfolio | |||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | $ 1,342 | $ 5,214 | $ 1,930 |
Related Allowance | 1,342 | 5,214 | 1,930 |
Recorded Investment | 72,801 | 77,297 | 51,410 |
Unpaid Principal Balance | 79,276 | 81,071 | 54,822 |
Average Recorded Investment | 76,180 | 77,209 | 51,678 |
Interest Income Recognized | 2,026 | 2,700 | 1,993 |
Commercial and Industrial [Member] | |||
Impaired loans by loan portfolio | |||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 10 | 3,661 | 183 |
Commercial Real Estate [Member] | |||
Impaired loans by loan portfolio | |||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 42 | 196 | 204 |
Construction Loans [Member] | |||
Impaired loans by loan portfolio | |||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 0 | 0 | 0 |
Small Business [Member] | |||
Impaired loans by loan portfolio | |||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 1 | 8 | 4 |
Residential Real Estate [Member] | |||
Impaired loans by loan portfolio | |||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 1,007 | 1,086 | 1,278 |
Home Equity [Member] | |||
Impaired loans by loan portfolio | |||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 265 | 242 | 238 |
Consumer Portfolio Segment [Member] | |||
Impaired loans by loan portfolio | |||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 17 | 21 | 23 |
With No Related Allowance Recorded [Member] | |||
Impaired loans by loan portfolio | |||
Recorded Investment | 57,373 | 49,745 | 24,403 |
Unpaid Principal Balance | 62,867 | 52,377 | 26,276 |
Average Recorded Investment | 60,380 | 48,814 | 24,774 |
Interest Income Recognized | 1,449 | 1,764 | 835 |
Related Allowance | 0 | 0 | 0 |
With No Related Allowance Recorded [Member] | Commercial and Industrial [Member] | |||
Impaired loans by loan portfolio | |||
Recorded Investment | 34,267 | 28,776 | 2,613 |
Unpaid Principal Balance | 38,329 | 29,772 | 3,002 |
Average Recorded Investment | 36,631 | 26,472 | 3,024 |
Interest Income Recognized | 446 | 927 | 71 |
Related Allowance | 0 | 0 | 0 |
With No Related Allowance Recorded [Member] | Commercial Real Estate [Member] | |||
Impaired loans by loan portfolio | |||
Recorded Investment | 13,245 | 11,628 | 12,008 |
Unpaid Principal Balance | 14,374 | 12,891 | 13,128 |
Average Recorded Investment | 13,683 | 12,744 | 11,676 |
Interest Income Recognized | 559 | 437 | 375 |
Related Allowance | 0 | 0 | 0 |
With No Related Allowance Recorded [Member] | Construction Loans [Member] | |||
Impaired loans by loan portfolio | |||
Recorded Investment | 304 | ||
Unpaid Principal Balance | 305 | ||
Average Recorded Investment | 308 | ||
Related Allowance | 0 | ||
With No Related Allowance Recorded [Member] | Small Business [Member] | |||
Impaired loans by loan portfolio | |||
Recorded Investment | 556 | 494 | 527 |
Unpaid Principal Balance | 619 | 569 | 618 |
Average Recorded Investment | 569 | 534 | 584 |
Interest Income Recognized | 21 | 20 | 22 |
Related Allowance | 0 | 0 | 0 |
With No Related Allowance Recorded [Member] | Residential Real Estate [Member] | |||
Impaired loans by loan portfolio | |||
Recorded Investment | 4,264 | 4,216 | 3,874 |
Unpaid Principal Balance | 4,397 | 4,427 | 4,033 |
Average Recorded Investment | 4,332 | 4,302 | 3,958 |
Interest Income Recognized | 218 | 185 | 157 |
Related Allowance | 0 | 0 | 0 |
With No Related Allowance Recorded [Member] | Home Equity [Member] | |||
Impaired loans by loan portfolio | |||
Recorded Investment | 4,950 | 4,485 | 4,893 |
Unpaid Principal Balance | 5,056 | 4,572 | 5,005 |
Average Recorded Investment | 5,063 | 4,602 | 5,023 |
Interest Income Recognized | 198 | 184 | 195 |
Related Allowance | 0 | 0 | 0 |
With No Related Allowance Recorded [Member] | Consumer Portfolio Segment [Member] | |||
Impaired loans by loan portfolio | |||
Recorded Investment | 91 | 146 | 184 |
Unpaid Principal Balance | 92 | 146 | 185 |
Average Recorded Investment | 102 | 160 | 201 |
Interest Income Recognized | 7 | 11 | 15 |
Related Allowance | 0 | 0 | 0 |
With Allowance Recorded [Member] | |||
Impaired loans by loan portfolio | |||
Recorded Investment | 15,428 | 27,552 | 27,007 |
Unpaid Principal Balance | 16,409 | 28,694 | 28,546 |
Average Recorded Investment | 15,800 | 28,395 | 26,904 |
Interest Income Recognized | 577 | 936 | 1,158 |
With Allowance Recorded [Member] | Commercial and Industrial [Member] | |||
Impaired loans by loan portfolio | |||
Recorded Investment | 376 | 10,402 | 2,534 |
Unpaid Principal Balance | 376 | 10,440 | 2,648 |
Average Recorded Investment | 391 | 10,760 | 2,848 |
Interest Income Recognized | 19 | 325 | 48 |
With Allowance Recorded [Member] | Commercial Real Estate [Member] | |||
Impaired loans by loan portfolio | |||
Recorded Investment | 3,393 | 5,185 | 10,978 |
Unpaid Principal Balance | 3,399 | 5,533 | 11,047 |
Average Recorded Investment | 3,447 | 5,491 | 10,789 |
Interest Income Recognized | 198 | 200 | 592 |
With Allowance Recorded [Member] | Small Business [Member] | |||
Impaired loans by loan portfolio | |||
Recorded Investment | 147 | 377 | 494 |
Unpaid Principal Balance | 153 | 392 | 523 |
Average Recorded Investment | 238 | 408 | 535 |
Interest Income Recognized | 14 | 21 | 30 |
With Allowance Recorded [Member] | Residential Real Estate [Member] | |||
Impaired loans by loan portfolio | |||
Recorded Investment | 9,420 | 9,959 | 11,531 |
Unpaid Principal Balance | 10,154 | 10,530 | 12,652 |
Average Recorded Investment | 9,575 | 10,065 | 11,669 |
Interest Income Recognized | 284 | 332 | 460 |
With Allowance Recorded [Member] | Home Equity [Member] | |||
Impaired loans by loan portfolio | |||
Recorded Investment | 1,876 | 1,378 | 1,096 |
Unpaid Principal Balance | 2,110 | 1,547 | 1,287 |
Average Recorded Investment | 1,916 | 1,403 | 655 |
Interest Income Recognized | 55 | 50 | 14 |
With Allowance Recorded [Member] | Consumer Portfolio Segment [Member] | |||
Impaired loans by loan portfolio | |||
Recorded Investment | 216 | 251 | 374 |
Unpaid Principal Balance | 217 | 252 | 389 |
Average Recorded Investment | 233 | 268 | 408 |
Interest Income Recognized | $ 7 | $ 8 | $ 14 |
Purchased Credit Impaired Loans
Purchased Credit Impaired Loans - Outstanding/Carrying Balance (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | $ 14,485 | $ 20,477 | |
Financing Receivable, Net | 4,539,256 | 4,355,968 | |
Receivables Acquired with Deteriorated Credit Quality [Member] | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |||
Financing Receivable, Net | $ 13,023 | $ 18,392 | $ 20,595 |
LOANS, ALLOWANCE FOR LOAN LOS75
LOANS, ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loans, Allowance for Loan Losses and Credit Quality [Abstract] | |||
Unamortized Loan Commitment and Origination fees | $ 6,100,000 | $ 5,100,000 | $ 4,300,000 |
Unamortized Discounts or Premiums | $ 9,400,000 | 8,600,000 | $ 6,600,000 |
Days To Be Termed As Non Accrual Loans | 90 days | ||
Significant advanced considered for risk rating change | $ 50,000 | ||
TDRs on nonaccrual status | $ 6,067,000 | $ 5,199,000 |
LOANS, ALLOWANCE FOR LOAN LOS76
LOANS, ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY Activity in the Accretable Yield PCI Loans(Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Beginning balance | $ 2,370 | $ 2,827 |
Accretion | (1,475) | (1,540) |
Certainloansacquiredinatransfernotaccountedforasdebtsecuritiesaccretableyieldadjustmentchangesinexpectedcashflow | 748 | 953 |
Reclassification from nonaccretable difference for loans with improved cash flows | 148 | 130 |
Ending balance | $ 1,791 | $ 2,370 |
LOANS, ALLOWANCE FOR LOAN LOS77
LOANS, ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY Foreclosed Residential Real Estate Property (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Foreclosed Residential Real Estate Property [Line Items] | ||
Foreclosed residential real estate property held by the creditor | $ 612 | $ 3,775 |
Mortgage Loans in Process of Foreclosure, Amount | $ 2,971 | $ 1,715 |
BANK PREMISES AND EQUIPMENT (De
BANK PREMISES AND EQUIPMENT (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 171,227,000 | $ 146,762,000 | |
Accumulated depreciation | (76,505,000) | (68,282,000) | |
Net bank premises and equipment | 94,722,000 | 78,480,000 | |
Depreciation expense | 8,500,000 | 7,300,000 | $ 7,000,000 |
Rental Income, Nonoperating | 1,300,000 | ||
Operating Leases, Income Statement, Depreciation Expense on Property Subject to or Held-for-lease | 939,000 | ||
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | 23,719,000 | 20,585,000 | |
Bank Premises [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 49,159,000 | 43,553,000 | |
Bank Premises [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 5 years | ||
Bank Premises [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 40 years | ||
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 25,184,000 | 24,387,000 | |
Leasehold Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 1 year | ||
Leasehold Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 27 years | ||
Equipment Leased to Other Party [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 10,644,000 | ||
Equipment Leased to Other Party [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 7 years | ||
Furniture and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 62,521,000 | $ 58,237,000 | |
Furniture and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 1 year | ||
Furniture and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 12 years |
GOODWILL AND IDENTIFIABLE INT79
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 231,806 | $ 221,526 | $ 201,083 |
Other Intangible Assets | 9,341 | 9,848 | |
Total goodwill and other intangible assets | 241,147 | 231,374 | |
Core deposit intangibles [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other Intangible Assets | 8,636 | 8,527 | |
Other identifiable Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Other Intangible Assets | $ 705 | $ 1,321 |
GOODWILL AND IDENTIFIABLE INT80
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||
Balance at beginning of year | $ 221,526 | $ 201,083 |
Acquisitions | 10,280 | 20,443 |
Balance at end of year | $ 231,806 | $ 221,526 |
GOODWILL AND IDENTIFIABLE INT81
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS (Details 2) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 29,901 | $ 26,937 |
Accumulated Amortization | (20,560) | (17,089) |
Net Carrying Amount | 9,341 | 9,848 |
Core deposits [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 26,736 | 23,917 |
Accumulated Amortization | (18,100) | (15,390) |
Net Carrying Amount | 8,636 | 8,527 |
Other intangible assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,165 | 3,020 |
Accumulated Amortization | (2,460) | (1,699) |
Net Carrying Amount | $ 705 | $ 1,321 |
GOODWILL AND IDENTIFIABLE INT82
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS (Details 3) $ in Thousands | Dec. 31, 2017USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2,017 | $ 2,394 |
2,018 | 1,687 |
2,019 | 1,414 |
2,020 | 1,245 |
2,021 | $ 948 |
GOODWILL AND IDENTIFIABLE INT83
GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 3.5 | $ 2.8 |
Weighted average amortization period for intangible assets | 9 years 9 months 18 days |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Banking and Thrift [Abstract] | ||
Deposit Liabilities Reclassified as Loans Receivable | $ 2,300 | $ 2,341 |
Deposit Liabilities, Collateral Issued, Financial Instruments | 349,200 | 299,700 |
Time Deposits, Fiscal Year Maturity [Abstract] | ||
1 year or less | 393,452 | 430,834 |
Over 1 year to 2 years | 119,341 | 82,627 |
Over 2 years to 3 years | 57,619 | 44,190 |
Over 3 years to 4 years | 41,183 | 49,446 |
Over 4 years to 5 years | 32,706 | 42,055 |
Time Deposits | $ 644,301 | $ 649,152 |
1 year or less (as percent) | 61.10% | 66.40% |
Over 1 years to 2 years (as percent) | 18.50% | 12.70% |
Over 2 years to 3 years (as percent) | 8.90% | 6.80% |
Over 3 years to 4 years (as percent) | 6.40% | 7.60% |
Over 4 years to 5 years (as percent) | 5.10% | 6.50% |
Time Deposits (as percent) | 100.00% | 100.00% |
Deposits over $250,000.00 | $ 80,000 | $ 75,300 |
BORROWINGS (FHLB Advances) (Det
BORROWINGS (FHLB Advances) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
Federal Home Loan Bank, Advances, Maturities Summary, Due in Next Twelve Months | $ 52,475 | $ 50,000 |
Federal Home Loan Bank, Advances, Activity for Year, Average Interest Rate for Year | 1.58% | 2.43% |
Federal Home Loan Bank, Advances, Maturities Summary, Due in Year Two | $ 0 | |
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate, One to Two Years from Balance Sheet Date | 0.00% | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | $ 52,475 | $ 50,000 |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate | 1.58% | 2.43% |
Debt Instrument, Unamortized Premium | $ 789 | $ 819 |
Total Federal Home Loan Bank Advances | $ 53,264 | $ 50,819 |
BORROWINGS Repurchase Agreement
BORROWINGS Repurchase Agreements (Details) - Maturity Overnight [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Assets Sold under Agreements to Repurchase [Line Items] | |||
Financial Assets Sold under Agreements to Repurchase, Gross Including Not Subject to Master Netting Arrangement | [1] | $ 162,679 | $ 176,913 |
U.S. Government agency securities | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Financial Assets Sold under Agreements to Repurchase, Gross Including Not Subject to Master Netting Arrangement | 16,867 | 20,233 | |
Agency mortgage-backed securities [Member] | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Financial Assets Sold under Agreements to Repurchase, Gross Including Not Subject to Master Netting Arrangement | 51,273 | 79,079 | |
Collateralized Mortgage Backed Securities [Member] | |||
Assets Sold under Agreements to Repurchase [Line Items] | |||
Financial Assets Sold under Agreements to Repurchase, Gross Including Not Subject to Master Netting Arrangement | $ 94,539 | $ 77,601 | |
[1] | All customer repurchase agreements have an overnight and continuous maturity date. |
BORROWINGS (Long-Term Debt) (De
BORROWINGS (Long-Term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total Long-Term Borrowings | $ 107,755 | $ 107,742 |
Subordinated Debt | 34,682 | 34,635 |
Junior Subordinated Debentures [Member] | Capital Trust V Preferred Securities Due in 2037 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Borrowings | 51,503 | 51,500 |
Junior Subordinated Debentures [Member] | Slades Ferry Trust I Preferred Securities Due in 2034 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Borrowings | 10,229 | 10,224 |
Junior Subordinated Debentures [Member] | Central Bancorp Capital Trust I Securities Due in 2034 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Borrowings | 5,258 | 5,302 |
Junior Subordinated Debentures [Member] | Central Bancorp Capital Trust II Securities Due in 2037 [Member] | ||
Debt Instrument [Line Items] | ||
Total Long-Term Borrowings | $ 6,083 | $ 6,081 |
BORROWINGS (Trust Preferred Sec
BORROWINGS (Trust Preferred Securities) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Junior Subordinated Debentures [Member] | ||
Debt Instrument [Line Items] | ||
Face Amount | $ 71 | $ 71 |
Junior Subordinated Debentures [Member] | Capital Trust V Preferred Securities Due in 2037 [Member] | ||
Debt Instrument [Line Items] | ||
Face Amount | $ 50 | |
Debt Instrument, interest rate, stated rate inclusive of interest rate swap - expired | 2.84% | 6.52% |
Fixed rate | 3.07% | |
Debt Instrument, interest rate, stated rate inclusive of interest rate swap - forward starting | 2.84% | |
Junior Subordinated Debentures [Member] | Capital Trust V Preferred Securities Due in 2037 [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.48% | |
Junior Subordinated Debentures [Member] | Slades Ferry Trust I Preferred Securities Due in 2034 [Member] | ||
Debt Instrument [Line Items] | ||
Face Amount | $ 10 | |
Fixed rate | 4.39% | |
Junior Subordinated Debentures [Member] | Slades Ferry Trust I Preferred Securities Due in 2034 [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.79% | |
Junior Subordinated Debentures [Member] | Central Bancorp Capital Trust I Securities Due in 2034 [Member] | ||
Debt Instrument [Line Items] | ||
Face Amount | $ 5.1 | |
Fixed rate | 4.03% | |
Junior Subordinated Debentures [Member] | Central Bancorp Capital Trust I Securities Due in 2034 [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.44% | |
Junior Subordinated Debentures [Member] | Central Bancorp Capital Trust II Securities Due in 2037 [Member] | ||
Debt Instrument [Line Items] | ||
Face Amount | $ 5.9 | |
Fixed rate | 7.015% | |
Junior Subordinated Debentures [Member] | Central Bancorp Capital Trust II Securities Due in 2037 [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.65% | |
Fixed rate | 3.24% | |
Subordinated Debt [Member] | Subordinated Debentures Due in November 2019 [Member] [Domain] | ||
Debt Instrument [Line Items] | ||
Fixed rate | 4.75% | |
Subordinated Debt [Member] | Subordinated Debentures Due in November 2019 [Member] [Domain] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.98% |
BORROWINGS (Maturities of Long-
BORROWINGS (Maturities of Long-Term Debt) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2,015 | $ 0 |
2,016 | 0 |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
Thereafter | 108,198 |
Total | 108,198 |
Junior Subordinated Debentures [Member] | Capital Trust V Preferred Securities Due in 2037 [Member] | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2,015 | 0 |
2,016 | 0 |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
Thereafter | 51,547 |
Total | 51,547 |
Junior Subordinated Debentures [Member] | Slades Ferry Trust I Preferred Securities Due in 2034 [Member] | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2,015 | 0 |
2,016 | 0 |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
Thereafter | 10,310 |
Total | 10,310 |
Junior Subordinated Debentures [Member] | Central Bancorp Capital Trust I Securities Due in 2034 [Member] | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2,015 | 0 |
2,016 | 0 |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
Thereafter | 5,258 |
Total | 5,258 |
Junior Subordinated Debentures [Member] | Central Bancorp Capital Trust II Securities Due in 2037 [Member] | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2,015 | 0 |
2,016 | 0 |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
Thereafter | 6,083 |
Total | 6,083 |
Subordinated Debentures [Member] | Subordinated Debentures Due August 27, 2018 [Member] | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2,015 | 0 |
2,016 | 0 |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
Thereafter | 35,000 |
Total | $ 35,000 |
BORROWINGS (Details Textual)
BORROWINGS (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||||||||||
Subordinated Debt | $ 34,682,000 | $ 34,635,000 | $ 34,682,000 | $ 34,635,000 | |||||||
Interest Expense, Long-term Debt | 4,000,000 | 5,800,000 | $ 6,600,000 | ||||||||
Gains (Losses) on Extinguishment of Debt | 0 | $ 0 | $ 0 | $ 0 | 0 | $ 0 | $ 0 | $ (437,000) | 0 | (437,000) | (122,000) |
Loans Pledged as Collateral | $ 1,500,000,000 | $ 1,400,000,000 | $ 1,500,000,000 | $ 1,400,000,000 | |||||||
Federal Home Loan Bank Advances Weighted Average Interest Rate inclusive of Swaps | 2.47% | 3.42% | 2.47% | 3.42% | |||||||
Repayments of Debt | $ 49,000,000 | 13,000,000 | |||||||||
Securities Sold under Agreements to Repurchase | $ 162,679,000 | $ 176,913,000 | $ 162,679,000 | 176,913,000 | |||||||
Interest expense on short-term borrowings | 257,000 | 208,000 | $ 210,000 | ||||||||
Total Long-Term Borrowings | 107,755,000 | 107,742,000 | 107,755,000 | 107,742,000 | |||||||
Parent Company [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Subordinated Debt | 35,000,000 | 35,000,000 | 35,000,000 | 35,000,000 | |||||||
Capital Trust V Preferred Securities Due in 2037 [Member] | Junior Subordinated Debt [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total Long-Term Borrowings | $ 51,503,000 | $ 51,500,000 | $ 51,503,000 | $ 51,500,000 | |||||||
Fixed rate | 3.07% | 3.07% | |||||||||
Debt Instrument, interest rate, stated rate inclusive of interest rate swap - expired | 2.84% | 6.52% | 2.84% | 6.52% | |||||||
Debt Instrument, interest rate, stated rate inclusive of interest rate swap - forward starting | 2.84% | 2.84% | |||||||||
Capital Trust V Preferred Securities Due in 2037 [Member] | Junior Subordinated Debt [Member] | LIBOR [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 1.48% | ||||||||||
Subordinated Debentures Due in November 2019 [Member] [Domain] | Subordinated Debentures [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fixed rate | 4.75% | 4.75% | |||||||||
Subordinated Debentures Due in November 2019 [Member] [Domain] | Subordinated Debentures [Member] | LIBOR [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 2.98% | ||||||||||
Slades Ferry Trust I Preferred Securities Due in 2034 [Member] | Junior Subordinated Debt [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total Long-Term Borrowings | $ 10,229,000 | $ 10,224,000 | $ 10,229,000 | $ 10,224,000 | |||||||
Fixed rate | 4.39% | 4.39% | |||||||||
Slades Ferry Trust I Preferred Securities Due in 2034 [Member] | Junior Subordinated Debt [Member] | LIBOR [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 2.79% | ||||||||||
Central Bancorp Capital Trust I Securities Due in 2034 [Member] | Junior Subordinated Debt [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total Long-Term Borrowings | $ 5,258,000 | 5,302,000 | $ 5,258,000 | 5,302,000 | |||||||
Fixed rate | 4.03% | 4.03% | |||||||||
Central Bancorp Capital Trust I Securities Due in 2034 [Member] | Junior Subordinated Debt [Member] | LIBOR [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 2.44% | ||||||||||
Central Bancorp Capital Trust II Securities Due in 2037 [Member] | Junior Subordinated Debt [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total Long-Term Borrowings | $ 6,083,000 | 6,081,000 | $ 6,083,000 | 6,081,000 | |||||||
Fixed rate | 7.015% | 7.015% | |||||||||
Central Bancorp Capital Trust II Securities Due in 2037 [Member] | Junior Subordinated Debt [Member] | LIBOR [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Fixed rate | 3.24% | 3.24% | |||||||||
Basis spread on variable rate | 1.65% | ||||||||||
Federal Home Loan Bank Advances [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Federal home loan bank unused remaining available borrowing capacity | $ 954,800,000 | $ 793,100,000 | $ 954,800,000 | $ 793,100,000 | |||||||
Line of credit maximum borrowing capacity | $ 5,000,000 | $ 5,000,000 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 22,064 | $ 23,852 | $ 20,563 | $ 20,725 | $ 17,179 | $ 20,484 | $ 20,374 | $ 18,611 | $ 87,204 | $ 76,648 | $ 64,960 |
Weighted Average Shares (in shares) | |||||||||||
Basic Shares (in shares) | 27,445,739 | 27,436,792 | 27,257,799 | 27,029,640 | 26,710,029 | 26,324,316 | 26,304,129 | 26,275,323 | 27,294,028 | 26,404,071 | 25,891,382 |
Effect of dilutive securities (in shares) | 77,615 | 76,307 | 74,497 | 81,283 | 60,022 | 53,072 | 47,885 | 43,409 | 78,076 | 51,847 | 68,566 |
Weighted average common shares (diluted) (in shares) | 27,523,354 | 27,513,099 | 27,332,296 | 27,110,923 | 26,770,051 | 26,377,388 | 26,352,014 | 26,318,732 | 27,372,104 | 26,455,918 | 25,959,948 |
Net Income Available to Common Shareholders per Share (in dollars per share) | |||||||||||
Basic EPS (in dollars per share) | $ 0.80 | $ 0.87 | $ 0.75 | $ 0.77 | $ 0.64 | $ 0.78 | $ 0.77 | $ 0.71 | $ 3.19 | $ 2.90 | $ 2.51 |
Effect of Dilutive Securities (in dollars per share) | 0 | 0 | (0.01) | ||||||||
Diluted EPS (in dollars per share) | $ 0.80 | $ 0.87 | $ 0.75 | $ 0.76 | $ 0.64 | $ 0.78 | $ 0.77 | $ 0.71 | $ 3.19 | $ 2.90 | $ 2.50 |
EARNINGS PER SHARE (Details 1)
EARNINGS PER SHARE (Details 1) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Performance Shares [Member] | |||
Details of anti dilutive options to purchase common stock | |||
Stock options | 0 | 0 | 0 |
Stock options [Member] | |||
Details of anti dilutive options to purchase common stock | |||
Stock options | 103 | 0 | 0 |
CUMULATIVELY GRANTED AWARDS (De
CUMULATIVELY GRANTED AWARDS (Details) | Dec. 31, 2017shares |
2005 Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Authorized Stock Awards | 1,650,000 |
Cumulative Granted, Net of Forfeitures | 1,233,487 |
Authorized but Unissued | 416,513 |
2005 Plan [Member] | Stock options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cumulative Granted, Net of Forfeitures | 537,941 |
2005 Plan [Member] | Restricted stock awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cumulative Granted, Net of Forfeitures | 695,546 |
2010 Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Authorized Stock Awards | 314,600 |
Cumulative Granted, Net of Forfeitures | 135,245 |
Authorized but Unissued | 179,355 |
2010 Plan [Member] | Stock options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cumulative Granted, Net of Forfeitures | 42,000 |
2010 Plan [Member] | Restricted stock awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Cumulative Granted, Net of Forfeitures | 93,245 |
PRE TAX EXPENSE (Details 1)
PRE TAX EXPENSE (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based award expense | $ 3,333 | $ 2,965 | $ 2,490 | |
Related tax benefits recognized in earnings | 1,362 | 1,211 | 1,122 | |
Stock options [Member] | Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based award expense | 76 | 72 | 0 | |
Restricted stock awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based award expense | [1] | 2,730 | 2,590 | 2,296 |
Restricted stock awards [Member] | Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock based award expense | $ 527 | $ 303 | $ 194 | |
[1] | Inclusive of compensation expense associated with time-vested and performance-based restricted stock awards. |
STOCK OPTION AWARDS DURING PERI
STOCK OPTION AWARDS DURING PERIOD (Details 3) - Stock options [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average remaining recognition period (years) | 1 year | ||
Shares granted | 5,000 | ||
Weighted average grant date fair value of options granted (per share) | $ 12.43 | $ 11.03 | $ 0 |
2/20/2016 | 2010 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 5,000 | ||
Vesting period | 22 months | ||
Investment Options, Expiration Date | Feb. 20, 2026 | ||
Expected volatility | 32.44% | ||
Expected life (years) | 5 years 6 months | ||
Expected dividend yield | 2.28% | ||
Risk free interest rate | 1.29% | ||
Weighted average grant date fair value of options granted (per share) | $ 10.59 | ||
Options Granted Date Three [Member] | 2010 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 5,000 | ||
Vesting period | 14 months | ||
Investment Options, Expiration Date | Nov. 7, 2027 | ||
Expected volatility | 20.80% | ||
Expected life (years) | 5 years 6 months | ||
Expected dividend yield | 1.87% | ||
Risk free interest rate | 2.02% | ||
Weighted average grant date fair value of options granted (per share) | $ 12.43 | ||
Options Granted Date Two [Member] | 2010 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 5,000 | ||
Vesting period | 18 months | ||
Investment Options, Expiration Date | Jul. 14, 2026 | ||
Expected volatility | 32.28% | ||
Expected life (years) | 5 years 6 months | ||
Expected dividend yield | 2.37% | ||
Risk free interest rate | 1.14% | ||
Weighted average grant date fair value of options granted (per share) | $ 11.46 |
RELEVANT STOCK OPTION INFORMATI
RELEVANT STOCK OPTION INFORMATION (Details 4) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash received from stock option exercises | $ 214 | $ 201 | $ 1,367 |
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of stock options vested based on grant date fair value | 72 | 37 | 14 |
Intrinsic value of stock options exercised | 1,082 | 494 | 3,362 |
Cash received from stock option exercises | 918 | 680 | 6,105 |
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | $ 442 | $ 204 | $ 1,362 |
Weighted average grant date fair value of options granted (per share) | $ 12.43 | $ 11.03 | $ 0 |
STOCK OPTION ROLLFORWARD (Detai
STOCK OPTION ROLLFORWARD (Details 5) - Stock options [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Stock Option Awards, Outstanding (in shares): | |||||
Balance outstanding at beginning of period | 109,650 | ||||
Granted | 5,000 | ||||
Exercised | (30,150) | ||||
Forfeited | 0 | ||||
Expired | (500) | ||||
Balance outstanding at end of period | 84,000 | [1] | 109,650 | ||
Options outstanding and expected to vest at December 31, 2017 | [2] | 84,000 | |||
Options exercisable at December 31, 2017 | [3] | 79,001 | |||
Weighted Average Exercise Price, Outstanding (in usd per share): | |||||
Balance outstanding at beginning of period | $ 29.93 | ||||
Granted | 70.28 | ||||
Exercised | 30.43 | ||||
Forfeited | 0 | ||||
Expired | 28.88 | ||||
Balance outstanding at end of period | 32.16 | $ 29.93 | |||
Options outstanding and expected to vest at December 31, 2017 | 32.16 | ||||
Options exercisable at December 31, 2017 | $ 30.21 | ||||
Balance at December 31, 2016, Weighted average remaining contractual term (years) | 3 years 16 days | ||||
Options outstanding and expected to vest at December 31, 2016, Weighted Average Remaining Contractual Term (years) | 3 years 16 days | ||||
Options exercisable at December 31, 2016, Weighted Average Remaining Contractual Term (years) | 2 years 7 months 20 days | ||||
Balance at December 31, 2016, Aggregate Intrinsic Value | [4] | $ 3,258 | |||
Options outstanding and expected to vest at December 31, 2016, Aggregate Intrinsic Value | [4] | 3,258 | |||
Options exercisable at December 31, 2016, Aggregate Intrinsic Value | [4] | $ 3,218 | |||
Stock Option Awards, Nonvested (in shares) | |||||
Balance nonvested at beginning of period | 6,666 | ||||
Granted | 5,000 | ||||
Vested | (6,667) | ||||
Forfeited | 0 | ||||
Expired | 0 | ||||
Balance nonvested at end of period | 4,999 | 6,666 | |||
Weighted Average Grant Date Fair Value, Nonvested (in dollars per share): | |||||
Balance nonvested at beginning of period | $ 11.03 | ||||
Granted | 12.43 | $ 11.03 | $ 0 | ||
Vested | 10.85 | ||||
Forfeited | 0 | ||||
Expired | 0 | ||||
Balance nonvested at end of period | $ 12.11 | $ 11.03 | |||
Unrecognized compensation cost | $ 22 | ||||
Weighted average remaining recognition period (years) | 1 year | ||||
[1] | Inclusive of 38,000 stock options outstanding to Directors. | ||||
[2] | Inclusive of 38,000 vested stock options and expected to vest to Directors. | ||||
[3] | Inclusive of 33,001 vested stock options outstanding to Directors. | ||||
[4] | The aggregate intrinsic value in the preceding tables represents the total pre-tax intrinsic value, based on the average of the high price and low price at which the Company’s common stock traded on December 31, 2017 of $70.95, which would have been received by the option holders had they all exercised their options as of that date. |
RSA GRANTS (Details 6)
RSA GRANTS (Details 6) - $ / shares | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Restricted stock awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 63.07 | |||
Restricted stock awards [Member] | Employee Stock Plan [Member] | Date Sixteen [Member] | Ratably Over Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 1,200 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | [1] | $ 62.53 | ||
Vesting terms | Ratably over 5 years from grant date | |||
Restricted stock awards [Member] | Employee Stock Plan [Member] | Date Seventeen [Member] | Ratably Over Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 34,150 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | [1] | $ 63.10 | ||
Vesting terms | Ratably over 5 years from grant date | |||
Restricted stock awards [Member] | Employee Stock Plan [Member] | Date eighteen [Member] | Ratably Over Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 500 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | [1] | $ 65.63 | ||
Vesting terms | Ratably over 5 years from grant date | |||
Restricted stock awards [Member] | Employee Stock Plan [Member] | Date nineteen [Member] | Ratably Over Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 1,500 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | [1] | $ 64.14 | ||
Vesting terms | [2] | Once on November 30, 2017 (2) | ||
Restricted stock awards [Member] | Employee Stock Plan [Member] | Date Twenty [Member] | Ratably Over Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 1,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | [1] | $ 64.03 | ||
Vesting terms | Ratably over 5 years from grant date | |||
Restricted stock awards [Member] | Employee Stock Plan [Member] | Date Twenty Two [Member] | Ratably Over Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 950 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | [1] | $ 66.18 | ||
Vesting terms | Ratably over 5 years from grant date | |||
Restricted stock awards [Member] | Employee Stock Plan [Member] | 2/11/2016 | Ratably Over Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 51,475 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | [1] | $ 41.96 | ||
Vesting terms | Ratably over 5 years from grant date | |||
Restricted stock awards [Member] | Employee Stock Plan [Member] | 3/1/2016 | Ratably Over Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 600 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | [1] | $ 44.37 | ||
Vesting terms | Ratably over 5 years from grant date | |||
Restricted stock awards [Member] | Employee Stock Plan [Member] | 9/19/2016 | Ratably Over Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 800 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | [1] | $ 52.92 | ||
Vesting terms | Ratably over 5 years from grant date | |||
Restricted stock awards [Member] | Employee Stock Plan [Member] | 11/7/2016 | Ratably Over Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 500 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | [1] | $ 54.28 | ||
Vesting terms | Ratably over 5 years from grant date | |||
Restricted stock awards [Member] | Employee Stock Plan [Member] | 2/11/2015 | Ratably Over Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 31,500 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | [1] | $ 39.42 | ||
Vesting terms | Ratably over 5 years from grant date | |||
Restricted stock awards [Member] | Employee Stock Plan [Member] | 2/12/2015 | Ratably Over Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 25,910 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | [1] | $ 40.03 | ||
Vesting terms | Ratably over 5 years from grant date | |||
Restricted stock awards [Member] | Employee Stock Plan [Member] | 3/19/2015 | Ratably Over Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 3,800 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | [1] | $ 43.56 | ||
Vesting terms | Ratably over 5 years from grant date | |||
Restricted stock awards [Member] | Employee Stock Plan [Member] | 4/27/2015 | At The End of Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 625 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | [1] | $ 41.61 | ||
Vesting terms | At the end of 3 years from grant date | |||
Restricted stock awards [Member] | Employee Stock Plan [Member] | 4/27/2015 | At The End of Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 1,875 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | [1] | $ 41.61 | ||
Vesting terms | At the end of 5 years from grant date | |||
Restricted stock awards [Member] | Employee Stock Plan [Member] | 10/13/2015 | Ratably Over Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 1,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | [1] | $ 46.09 | ||
Vesting terms | Ratably over 5 years from grant date | |||
Restricted stock awards [Member] | Employee Stock Plan [Member] | 10/20/2015 | Ratably Over Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 2,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | [1] | $ 46.47 | ||
Vesting terms | Ratably over 5 years from grant date | |||
Restricted stock awards [Member] | Non Employee Director Stock Plan Member | Date Twenty One [Member] | At The End of Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 7,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | [1] | $ 61.95 | ||
Vesting terms | [3] | At the end of 5 years from grant date (3) | ||
Restricted stock awards [Member] | Non Employee Director Stock Plan Member | 5/24/2016 | At The End of Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 8,700 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | [1] | $ 48.34 | ||
Vesting terms | [3] | At the end of 5 years from grant date (3) | ||
Restricted stock awards [Member] | Non Employee Director Stock Plan Member | 11/14/2016 | At The End of Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 725 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | [1] | $ 63.43 | ||
Vesting terms | [4] | Once on May 24, 2021 (4) | ||
Restricted stock awards [Member] | Non Employee Director Stock Plan Member | 5/27/2015 | At The End of Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 8,800 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | [1] | $ 45.02 | ||
Vesting terms | [3] | At the end of 5 years from grant date (3) | ||
Restricted stock awards [Member] | Non Employee Director Stock Plan Member | 7/14/2015 | At The End of Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 800 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | [1] | $ 47.82 | ||
Vesting terms | [5] | Once on May 27, 2020 (5) | ||
Performance Shares [Member] | Employee Stock Plan [Member] | 2/11/2016 | At The End of Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 20,450 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | [1] | $ 41.96 | ||
Vesting terms | The earlier of: the date on which it is determined if the performance goal has been achieved; or, March 31, 2019. | |||
Performance Shares [Member] | Employee Stock Plan [Member] | 2/12/2015 | At The End of Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 21,780 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | [1] | $ 40.03 | ||
Vesting terms | The earlier of: the date on which it is determined if the performance goal has been achieved; or, March 31, 2018. | |||
Performance Shares [Member] | Employee Stock Plan [Member] | Date Twenty Three [Member] | At The End of Period [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 14,400 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | [1] | $ 63.10 | ||
Vesting terms | The earlier of: the date on which it is determined if the performance goal has been achieved; or, March 31, 2020. | |||
[1] | The fair value of the restricted stock awards are based upon the average of the high and low prices at which the Company’s common stock traded on the date of grant. The holders of time-vested restricted stock awards participate fully in the rewards of stock ownership of the Company, including voting and dividend rights. The holders of performance-based restricted stock awards do not participate in the rewards of stock ownership of the Company until vested. The holders of all restricted stock awards are not required to pay any consideration to the Company for the awards. | |||
[2] | This restricted stock grant fully vested upon an employee's termination, on November 30, 2017. | |||
[3] | These restricted stock grants will vest at the end of a five year period, or earlier if the director ceases to be a director for any reason other than cause, such as, for example, by retirement. | |||
[4] | These restricted stock grants will vest on May 24, 2021, or earlier if the director ceases to be a director for any reason other than cause, such as, for example, by retirement. | |||
[5] | These restricted stock grants will vest on May 27, 2020, or earlier if the director ceases to be a director for any reason other than cause, such as, for example, by retirement. |
FV OF RSA VESTS (Details 7)
FV OF RSA VESTS (Details 7) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted stock awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock awards upon vesting | $ 5,717 | $ 3,019 | $ 2,610 |
RSA ROLLFORWARD (Details 8)
RSA ROLLFORWARD (Details 8) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)$ / sharesshares | ||
Oustanding (in shares): | ||
Beginning balance | 212,698 | |
Ending balance | 177,191 | |
Restricted stock awards [Member] | ||
Oustanding (in shares): | ||
Beginning balance | 264,315 | |
Granted | 60,700 | |
Vested/Released | (89,436) | |
Forfeited | (9,614) | |
Ending balance | 225,965 | [1] |
Weighted Average Grant Price (in usd per share): | ||
Beginning balance | $ / shares | $ 38.88 | |
Granted | $ / shares | 63.07 | |
Vested/Released | $ / shares | 36.79 | |
Forfeited | $ / shares | 39.49 | |
Ending balance | $ / shares | $ 46.18 | |
Unrecognized compensation cost (inclusive of directors’ fees) | $ | $ 6,355 | |
Weighted average remaining recognition period (years) | 3 years | |
[1] | Inclusive of 38,445 restricted stock awards outstanding to Directors. |
STOCK BASED COMPENSATION (Detai
STOCK BASED COMPENSATION (Details Textual) - $ / shares | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 177,191 | 212,698 | |||
Share Based Compensation Arrangement By Share Based Payment Award Options Price Per Share Common Stock Average High And Low Price Intrinsic Value | $ 70.95 | ||||
Stock options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 84,000 | [1] | 109,650 | ||
Options outstanding and expected to vest at December 31, 2017 | [2] | 84,000 | |||
Annualized estimated forfeitures | 4.50% | 4.50% | |||
Options exercisable at December 31, 2017 | [3] | 79,001 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 4,999 | 6,666 | |||
Weighted average remaining recognition period (years) | 1 year | ||||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 225,965 | [4] | 264,315 | ||
Weighted average remaining recognition period (years) | 3 years | ||||
Director [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 38,000 | ||||
Options outstanding and expected to vest at December 31, 2017 | [1] | 38,000 | |||
Options exercisable at December 31, 2017 | [1] | 33,001 | |||
Director [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 38,445 | ||||
Two Thousand Five Amended and Restated Employee Stock Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,650,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 416,513 | ||||
Two Thousand Ten Nonemployee Director Stock Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 314,600 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 179,355 | ||||
Two Thousand Ten Nonemployee Director Stock Plan [Member] | Maximum [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||
[1] | Inclusive of 38,000 stock options outstanding to Directors. | ||||
[2] | Inclusive of 38,000 vested stock options and expected to vest to Directors. | ||||
[3] | Inclusive of 33,001 vested stock options outstanding to Directors. | ||||
[4] | Inclusive of 38,445 restricted stock awards outstanding to Directors. |
Derivatives and Hedging Acti102
Derivatives and Hedging Activities (Derivative Positions for Interest Rate Swaps which Qualify as Hedges) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details of derivative positions for interest rate swaps which qualify as hedges for accounting purposes | |||
Notional Amount | $ 100,000,000 | $ 75,000,000 | |
Fair Value | 1,616,000 | 624,000 | |
Amortization Of Deferred Hedge Gains Losses | 244,000 | 244,000 | $ 244,000 |
Notional amount of fair value hedged derivative | 0 | 0 | $ 0 |
Positions Seven [Member] [Member] | |||
Details of derivative positions for interest rate swaps which qualify as hedges for accounting purposes | |||
Notional Amount | $ 25,000,000 | ||
Trade Date | Jul. 18, 2017 | ||
Effective Date | Aug. 15, 2017 | ||
Maturity Date | Aug. 15, 2022 | ||
Receive (Variable) Index | 3 Month LIBOR | ||
Current Rate Received | 1.42% | ||
Pay Fixed Swap Rate | 1.88% | ||
Fair Value | $ 345,000 | ||
Positions Five [Member] | |||
Details of derivative positions for interest rate swaps which qualify as hedges for accounting purposes | |||
Notional Amount | $ 25,000,000 | ||
Trade Date | Apr. 1, 2016 | ||
Effective Date | Jan. 17, 2017 | ||
Maturity Date | Dec. 15, 2021 | ||
Receive (Variable) Index | 3 Month LIBOR | ||
Current Rate Received | 1.59% | ||
Pay Fixed Swap Rate | 1.36% | ||
Fair Value | $ 772,000 | ||
Positions One [Member] | |||
Details of derivative positions for interest rate swaps which qualify as hedges for accounting purposes | |||
Notional Amount | $ 25,000,000 | ||
Trade Date | Dec. 9, 2008 | ||
Effective Date | Dec. 10, 2008 | ||
Maturity Date | Dec. 10, 2018 | ||
Receive (Variable) Index | 3 Month LIBOR | ||
Current Rate Received | 0.95% | ||
Pay Fixed Swap Rate | 2.94% | ||
Fair Value | $ (740,000) | ||
Positions Six [Member] | |||
Details of derivative positions for interest rate swaps which qualify as hedges for accounting purposes | |||
Notional Amount | $ 25,000,000 | ||
Trade Date | Apr. 1, 2016 | ||
Effective Date | Jan. 17, 2017 | ||
Maturity Date | Dec. 15, 2021 | ||
Receive (Variable) Index | 3 Month LIBOR | ||
Current Rate Received | 1.59% | ||
Pay Fixed Swap Rate | 1.36% | ||
Fair Value | $ 763,000 | ||
Positions Two [Member] | |||
Details of derivative positions for interest rate swaps which qualify as hedges for accounting purposes | |||
Notional Amount | $ 25,000,000 | ||
Trade Date | Apr. 1, 2016 | ||
Effective Date | Jan. 17, 2017 | ||
Maturity Date | Dec. 15, 2021 | ||
Receive (Variable) Index | 3 Month LIBOR | ||
Pay Fixed Swap Rate | 1.36% | ||
Fair Value | $ 689,000 | ||
Positions Three [Member] | |||
Details of derivative positions for interest rate swaps which qualify as hedges for accounting purposes | |||
Notional Amount | $ 25,000,000 | ||
Trade Date | Apr. 1, 2016 | ||
Effective Date | Jan. 17, 2017 | ||
Maturity Date | Dec. 15, 2021 | ||
Receive (Variable) Index | 3 Month LIBOR | ||
Pay Fixed Swap Rate | 1.36% | ||
Fair Value | $ 675,000 | ||
Positions Four [Member] | |||
Details of derivative positions for interest rate swaps which qualify as hedges for accounting purposes | |||
Notional Amount | $ 25,000,000 | ||
Trade Date | Dec. 9, 2008 | ||
Effective Date | Dec. 10, 2008 | ||
Maturity Date | Dec. 10, 2018 | ||
Receive (Variable) Index | 3 Month LIBOR | ||
Current Rate Received | 1.54% | ||
Pay Fixed Swap Rate | 2.94% | ||
Fair Value | $ (264,000) |
Derivatives and Hedging Acti103
Derivatives and Hedging Activities (Customer Related Derivative Positions - Not Designated as Hedges) (Details) $ in Thousands | Dec. 31, 2017USD ($)position | Dec. 31, 2016USD ($)position | |
Summary of customer related derivative positions, not designated as hedging | |||
Total | $ 100,000 | $ 75,000 | |
Fair Value | $ 1,616 | $ 624 | |
Not Designated as Hedging Instrument [Member] | Receive fixed, pay variable | Loan level swaps | |||
Summary of customer related derivative positions, not designated as hedging | |||
Number of Positions (1) | position | [1] | 246 | 222 |
Less than 1 year | $ 36,023 | $ 30,245 | |
Less than 2 years | 61,500 | 21,708 | |
Less than 3 years | 152,287 | 63,771 | |
Less than 4 years | 111,147 | 165,783 | |
Thereafter | 591,385 | 567,897 | |
Total | 952,342 | 849,404 | |
Fair Value | $ 3,875 | $ 12,005 | |
Not Designated as Hedging Instrument [Member] | Pay fixed, receive variable | Loan level swaps | |||
Summary of customer related derivative positions, not designated as hedging | |||
Number of Positions (1) | position | [1] | 231 | 207 |
Less than 1 year | $ 36,023 | $ 30,245 | |
Less than 2 years | 61,500 | 21,708 | |
Less than 3 years | 152,287 | 63,771 | |
Less than 4 years | 111,147 | 165,783 | |
Thereafter | 591,385 | 567,897 | |
Total | 952,342 | 849,404 | |
Fair Value | $ (3,880) | $ (12,008) | |
Not Designated as Hedging Instrument [Member] | Buys foreign currency, sells U.S. currency | Foreign exchange contracts | |||
Summary of customer related derivative positions, not designated as hedging | |||
Number of Positions (1) | position | [1] | 15 | 33 |
Less than 1 year | $ 26,382 | $ 45,711 | |
Less than 2 years | 3,780 | ||
Total | 30,162 | 45,711 | |
Fair Value | $ 1,202 | $ (2,250) | |
Not Designated as Hedging Instrument [Member] | Buys U.S. currency, sells foreign currency | Foreign exchange contracts | |||
Summary of customer related derivative positions, not designated as hedging | |||
Number of Positions (1) | position | [1] | 15 | 33 |
Less than 1 year | $ 26,382 | $ 45,711 | |
Less than 2 years | 3,780 | ||
Total | 30,162 | 45,711 | |
Fair Value | $ (1,188) | $ 2,277 | |
[1] | The Company may enter into one dealer swap agreement which offsets multiple commercial borrower swap agreements. |
Derivatives and Hedging Acti104
Derivatives and Hedging Activities (FV of Derivative Financial Instruments and Classification on Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair value of derivative financial instruments as well as their classification on the balance sheet | ||
Total | $ 17,318 | $ 22,331 |
Total | 15,693 | 21,683 |
Other Assets [Member] | ||
Fair value of derivative financial instruments as well as their classification on the balance sheet | ||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 15,596 | 21,397 |
Total | 17,476 | 22,761 |
Other Liabilities [Member] | ||
Fair value of derivative financial instruments as well as their classification on the balance sheet | ||
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | 15,429 | 21,176 |
Total | 15,693 | 21,916 |
Interest rate derivatives | ||
Fair value of derivative financial instruments as well as their classification on the balance sheet | ||
Total | 740 | |
Interest rate derivatives | Derivatives designated as hedges: [Member] | Other Assets [Member] | ||
Fair value of derivative financial instruments as well as their classification on the balance sheet | ||
Interest Rate Derivative Assets, at Fair Value | 1,880 | 1,364 |
Interest rate derivatives | Derivatives designated as hedges: [Member] | Other Liabilities [Member] | ||
Fair value of derivative financial instruments as well as their classification on the balance sheet | ||
Interest rate derivatives | 264 | 740 |
Loan level swaps | ||
Fair value of derivative financial instruments as well as their classification on the balance sheet | ||
Total | 18,629 | |
Total | 18,632 | |
Loan level swaps | Other Assets [Member] | ||
Fair value of derivative financial instruments as well as their classification on the balance sheet | ||
Total | 14,236 | 18,629 |
Loan level swaps | Other Liabilities [Member] | ||
Fair value of derivative financial instruments as well as their classification on the balance sheet | ||
Total | 14,241 | 18,632 |
Foreign exchange contracts | ||
Fair value of derivative financial instruments as well as their classification on the balance sheet | ||
Total | 2,338 | |
Total | 2,311 | |
Foreign exchange contracts | Other Assets [Member] | ||
Fair value of derivative financial instruments as well as their classification on the balance sheet | ||
Total | 1,202 | 2,338 |
Foreign exchange contracts | Other Liabilities [Member] | ||
Fair value of derivative financial instruments as well as their classification on the balance sheet | ||
Total | 1,188 | 2,311 |
Mortgage Derivatives | Derivatives not designated as hedges: [Member] | Other Assets [Member] | ||
Fair value of derivative financial instruments as well as their classification on the balance sheet | ||
Interest rate lock commitments | 149 | 430 |
Forward sales agreements | 9 | 0 |
Mortgage Derivatives | Derivatives not designated as hedges: [Member] | Other Liabilities [Member] | ||
Fair value of derivative financial instruments as well as their classification on the balance sheet | ||
Interest rate lock commitments | 0 | 0 |
Forward sales agreements | $ 0 | $ 233 |
Derivatives and Hedging Acti105
Derivatives and Hedging Activities (Derivative Financial Instruments included in OCI and Current Earnings) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent | $ 443 | $ 2,170 | $ 1,199 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Borrowings Expense, before Tax | [1] | (441) | (2,520) | (2,828) |
Derivatives designated as hedges: [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (2,520) | (2,828) | ||
Derivatives not designated as hedges: [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other income | (54) | (44) | (43) | |
Other Expense [Member] | Derivatives not designated as hedges: [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other income | (21) | (82) | (53) | |
Other Income [Member] | Derivatives not designated as hedges: [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other income | 6 | 73 | 60 | |
Mortgage banking income | Derivatives not designated as hedges: [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Increase Decrease In Fair Value Of Unhedged Derivative Instruments Relating To Residential Loans | (39) | (35) | (50) | |
Derivatives designated as hedges: [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent | $ 443 | $ 2,170 | $ 1,199 | |
[1] | Includes the amortization of the remaining balance of a realized but unrecognized gain, net of tax, from the termination of interest rate swaps in 2009. The original gain of $1.4 million, net of tax, will be recognized in earnings through December 2018, the original maturity date of the swap. The balance of this gain had amortized to $137,000, $281,000, and $427,000 at December 31, 2017, 2016, and 2015, respectively. |
Derivatives and Hedging Acti106
Derivatives and Hedging Activities (Textual) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | |||
Derivative, Net Liability Position, Aggregate Fair Value | $ 4,200,000 | $ 12,800,000 | |
Total | 100,000,000 | 75,000,000 | |
Increase (Decrease) in Loans Held-for-sale | (113,000) | 87,000 | $ (22,000) |
Net amortization income | 244,000 | 244,000 | 244,000 |
Exposure to Institutional Counterparties | $ 7,100,000 | 4,700,000 | |
Maximum length of time Company is currently hedging its exposure | 5 years | ||
Interest expense | $ 202,000 | ||
Customer related positions | 9,500,000 | 16,100,000 | |
Gain (Loss) on Sales of Loans, Net | 4,700,000 | 6,100,000 | 4,700,000 |
Notional amount of fair value hedged derivative | 0 | 0 | $ 0 |
Positions Three [Member] | |||
Derivative [Line Items] | |||
Total | $ 25,000,000 | ||
Positions Six [Member] | |||
Derivative [Line Items] | |||
Total | $ 25,000,000 |
BALANCE SHEET OFFSETTING (Detai
BALANCE SHEET OFFSETTING (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Offsetting Liabilities [Line Items] | |||
Total | $ 17,318 | $ 22,331 | |
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 | |
Derivative Asset | 17,318 | 22,331 | |
Derivative, Collateral, Obligation to Return Securities | [1] | 5,383 | 4,222 |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 11,935 | 18,109 | |
Total | 15,693 | 21,683 | |
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | |
Derivative Liability | 15,693 | 21,683 | |
Derivative, Collateral, Right to Reclaim Securities | [1] | 5,383 | 4,222 |
Derivative, Collateral, Right to Reclaim Cash | 3,939 | 11,846 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 6,371 | 5,615 | |
Interest Rate Swap [Member] | |||
Offsetting Liabilities [Line Items] | |||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 | |
Derivative Asset | 1,880 | 1,364 | |
Derivative, Collateral, Obligation to Return Securities | [1] | 805 | 961 |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 1,075 | 403 | |
Total | 740 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | |
Derivative Liability | 264 | 740 | |
Derivative, Collateral, Right to Reclaim Securities | [1] | 0 | 0 |
Derivative, Collateral, Right to Reclaim Cash | 264 | 740 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 | |
Loan level swaps | |||
Offsetting Liabilities [Line Items] | |||
Total | 18,629 | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 | |
Derivative Asset | 14,236 | 18,629 | |
Derivative, Collateral, Obligation to Return Securities | [1] | 4,578 | 3,261 |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 9,658 | 15,368 | |
Total | 18,632 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | |
Derivative Liability | 14,241 | 18,632 | |
Derivative, Collateral, Right to Reclaim Securities | [1] | 5,383 | 4,222 |
Derivative, Collateral, Right to Reclaim Cash | 3,675 | 11,106 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 5,183 | 3,304 | |
Foreign Exchange Contract [Member] | |||
Offsetting Liabilities [Line Items] | |||
Total | 2,338 | ||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 | |
Derivative Asset | 1,202 | 2,338 | |
Derivative, Collateral, Obligation to Return Securities | [1] | 0 | 0 |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 1,202 | 2,338 | |
Total | 2,311 | ||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | |
Derivative Liability | 1,188 | 2,311 | |
Derivative, Collateral, Right to Reclaim Securities | [1] | 0 | 0 |
Derivative, Collateral, Right to Reclaim Cash | 0 | 0 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 1,188 | 2,311 | |
Other Assets [Member] | |||
Offsetting Liabilities [Line Items] | |||
Total | 17,476 | 22,761 | |
Other Assets [Member] | Loan level swaps | |||
Offsetting Liabilities [Line Items] | |||
Total | 14,236 | 18,629 | |
Other Assets [Member] | Foreign Exchange Contract [Member] | |||
Offsetting Liabilities [Line Items] | |||
Total | 1,202 | 2,338 | |
Other Assets [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Offsetting Liabilities [Line Items] | |||
Interest Rate Derivative Assets, at Fair Value | 1,880 | 1,364 | |
Other Liabilities [Member] | |||
Offsetting Liabilities [Line Items] | |||
Total | 15,693 | 21,916 | |
Other Liabilities [Member] | Loan level swaps | |||
Offsetting Liabilities [Line Items] | |||
Total | 14,241 | 18,632 | |
Other Liabilities [Member] | Foreign Exchange Contract [Member] | |||
Offsetting Liabilities [Line Items] | |||
Total | 1,188 | 2,311 | |
Other Liabilities [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Offsetting Liabilities [Line Items] | |||
Interest rate derivatives | 264 | 740 | |
Customer Repurchase Agreements [Member] | |||
Offsetting Liabilities [Line Items] | |||
Securities Sold under Agreements to Repurchase, Gross Including Not Subject to Master Netting Arrangement | 162,679 | 176,913 | |
Securities Sold under Agreements to Repurchase, Asset | 0 | 0 | |
Securities Sold under Agreements to Repurchase | 162,679 | 176,913 | |
Securities Sold under Agreements to Repurchase, Collateral, Right to Reclaim Securities | [1] | 0 | 0 |
Securities Sold under Agreements to Repurchase, Collateral, Right to Reclaim Cash | 0 | 0 | |
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | $ 162,679 | $ 176,913 | |
[1] | Reflects offsetting derivative positions with the same counterparty. |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current expense | |||||||||||
Federal | $ 28,852 | $ 26,549 | $ 11,946 | ||||||||
State | 9,278 | 8,883 | 5,052 | ||||||||
Total current expense | 38,130 | 35,432 | 16,998 | ||||||||
Deferred expense (benefit) | |||||||||||
Federal | 7,953 | 153 | 8,466 | ||||||||
State | 1,258 | (158) | 1,754 | ||||||||
Total deferred expense (benefit) | 9,211 | (5) | 10,220 | ||||||||
Total expense | $ 14,915 | $ 12,681 | $ 10,731 | $ 9,014 | $ 7,698 | $ 9,793 | $ 9,508 | $ 8,428 | $ 47,341 | $ 35,427 | $ 27,218 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||||||||||
Computed statutory federal income tax provision | $ 47,091 | $ 39,226 | $ 32,262 | ||||||||
State taxes, net of federal tax benefit | 6,817 | 5,643 | 4,500 | ||||||||
Revaluation of net deferred tax assets | 1,895 | 0 | 0 | ||||||||
Merger and other related costs (non-deductible) | 213 | 210 | 185 | ||||||||
Change in valuation allowance | 31 | 28 | 41 | ||||||||
New Markets Tax Credits | (3,960) | (6,360) | (6,514) | ||||||||
Increase in cash surrender value of life insurance | (1,445) | (1,431) | (1,292) | ||||||||
Stock-based compensation | (1,258) | 0 | 0 | ||||||||
Low Income Housing Project Investments | (1,253) | (1,641) | (1,182) | ||||||||
Nontaxable interest, net | (987) | (996) | (973) | ||||||||
Other, net | 197 | 748 | 191 | ||||||||
Total expense | $ 14,915 | $ 12,681 | $ 10,731 | $ 9,014 | $ 7,698 | $ 9,793 | $ 9,508 | $ 8,428 | $ 47,341 | $ 35,427 | $ 27,218 |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||||||||||
Computed statutory federal income tax provision | 35.00% | 35.00% | 35.00% | ||||||||
State taxes, net of federal tax benefit | 5.07% | 5.03% | 4.88% | ||||||||
Revaluation of net deferred tax assets | 1.41% | 0.00% | 0.00% | ||||||||
Merger and other related costs (non-deductible) | 0.16% | 0.19% | 0.20% | ||||||||
Change in valuation allowance | 0.02% | 0.02% | 0.04% | ||||||||
New Markets Tax Credits | (2.94%) | (5.67%) | (7.07%) | ||||||||
Increase in cash surrender value of life insurance | (1.07%) | (1.28%) | (1.40%) | ||||||||
Stock-based compensation | (0.94%) | (0.00%) | (0.00%) | ||||||||
Low Income Housing Project Investments | (0.93%) | (1.46%) | (1.28%) | ||||||||
Nontaxable interest, net | (0.73%) | (0.89%) | (1.06%) | ||||||||
Other, net | 0.15% | 0.67% | 0.22% | ||||||||
Total expense | 35.20% | 31.61% | 29.53% |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets | ||
Accrued expenses not deducted for tax purposes | $ 9,268 | $ 15,401 |
Allowance for loan losses | 16,702 | 24,681 |
Deferred gain on sale leaseback transaction | 909 | 1,744 |
Employee and director equity compensation | 1,559 | 2,095 |
Federal Home Loan Bank borrowings fair value adjustment | 26 | 82 |
Loan basis difference fair value adjustment | 3,070 | 4,336 |
Deferred Tax Assets, Operating Loss Carryforwards | 127 | 69 |
Deferred Tax Assets, Unrealized Losses on Available-for-Sale Securities, Gross | 106 | 0 |
Other | 527 | 1,015 |
Gross deferred tax assets | 32,294 | 49,423 |
Deferred Tax Assets, Valuation Allowance | (121) | (69) |
Deferred Tax Assets, Net of Valuation Allowance | 32,173 | 49,354 |
Deferred tax liabilities | ||
Core deposit and other intangibles | 2,057 | 3,040 |
Deferred loan fees, net | 4,275 | 5,407 |
Fixed assets | 5,270 | 6,168 |
Goodwill | 10,265 | 14,737 |
Net unrealized gain on securities available for sale | 0 | 105 |
Deferred Tax Liabilities, Derivatives | 524 | 454 |
Other | 4,307 | 3,909 |
Gross deferred tax liabilities | 26,698 | 33,820 |
Total net deferred tax asset | $ 5,475 | $ 15,534 |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning Balance | $ 111 | $ 81 |
Reduction of tax positions for prior years | 0 | 0 |
Increase for prior year tax positions | 0 | 0 |
Increase for current year tax positions | 31 | 30 |
Ending Balance | $ 142 | $ 111 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Tax Expense related to a change in tax law | $ 2,361,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 466,000 | $ 0 | $ 0 |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | 21,000 | ||||||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 18,000 | 11,000 | $ 0 | ||||||||
Deferred Tax Assets, Operating Loss Carryforwards | 127,000 | 69,000 | $ 127,000 | $ 69,000 | |||||||
Computed statutory federal income tax provision | 35.00% | 35.00% | 35.00% | ||||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 29,000 | $ 11,000 | $ 29,000 | $ 11,000 | |||||||
Net Deferred Tax Asset [Member] | |||||||||||
Tax Expense related to a change in tax law | 1,895,000 | 1,900,000 | |||||||||
Investments in Low Income Housing Projects [Member] | |||||||||||
Tax Expense related to a change in tax law | 466,000 | 466,000 | |||||||||
Deferred Tax Assets, Operating Loss Carryforwards | $ 121,000 | $ 121,000 |
LOW INCOME HOUSING PROJECT I113
LOW INCOME HOUSING PROJECT INVESTMENTS Low Income Housing Project Investments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Tax Expense related to a change in tax law | $ 2,361,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 466,000 | $ 0 | $ 0 | |
Original Investment in Low Income Housing Projects | 47,399,000 | 47,379,000 | 47,399,000 | 47,379,000 | 42,199,000 | |||||||
Amortization Method Qualified Affordable Housing Project Investments | 35,225,000 | 39,606,000 | 35,225,000 | 39,606,000 | 38,151,000 | |||||||
Qualified Affordable Housing Project Investments, Commitment | 4,536,000 | $ 12,161,000 | 4,536,000 | 12,161,000 | 14,607,000 | |||||||
Affordable Housing Tax Credits and Other Tax Benefits, Amount | 5,654,000 | 5,366,000 | 3,632,000 | |||||||||
Amortization Method Qualified Affordable Housing Project Investments, Amortization | 4,402,000 | [1] | 3,725,000 | 2,450,000 | ||||||||
Income (Loss) from Affordable Housing Projects, Equity Method Investments | 1,253,000 | $ 1,641,000 | $ 1,182,000 | |||||||||
Investments in Low Income Housing Projects [Member] | ||||||||||||
Tax Expense related to a change in tax law | $ 466,000 | $ 466,000 | ||||||||||
[1] | The 2017 amount is inclusive of $466,000 related to the revaluation of Low Income Housing tax credit investments as a result of the 2017 Tax Act. |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Plan [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Multiemployer Plans, Funded Status | At least 80 percent | At least 80 percent | ||
FIP/RP Status Pending/Implemented | No | |||
Surcharge Imposed | No | |||
Expiration Date of Collective-Bargaining Agreement | N/A | |||
Minimum Contributions Required for Future Periods | $ 0 | |||
Supplemental Executive Retirement Plans [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Defined Benefit Plan, Benefit Obligation | 15,749,000 | $ 14,177,000 | $ 13,290,000 | $ 12,537,000 |
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 461,000 | |||
Contributions paid | 367,000 | $ 320,000 | $ 276,000 | |
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | $ 454,000 | |||
Supplemental Executive Retirement Plans [Member] | Minimum [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Discount rate used for benefit obligation | 2.48% | 2.49% | 2.49% | |
Discount rate used for net periodic benefit cost | 2.49% | 2.49% | 2.24% | |
Supplemental Executive Retirement Plans [Member] | Maximum [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Discount rate used for benefit obligation | 3.45% | 3.94% | 4.16% | |
Discount rate used for net periodic benefit cost | 3.94% | 4.16% | 3.84% |
EMPLOYEE BENEFIT PLANS (Deta115
EMPLOYEE BENEFIT PLANS (Details 1) - Pension Plan [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Multiemployer Plans [Line Items] | |||
Cash payment | $ 6,432 | $ 6,245 | $ 2,983 |
Multiemployer Plan Year Allocation Four [Member] | |||
Multiemployer Plans [Line Items] | |||
Cash payment | 5,000 | 4,000 | 1,215 |
Multiemployer Plan Year Allocation One [Member] | |||
Multiemployer Plans [Line Items] | |||
Cash payment | $ 1,432 | ||
Multiemployer Plan Year Allocation Two [Member] | |||
Multiemployer Plans [Line Items] | |||
Cash payment | $ 2,245 | ||
Multiemployer Plan Year Allocation Three [Member] | |||
Multiemployer Plans [Line Items] | |||
Cash payment | $ 1,768 |
EMPLOYEE BENEFIT PLANS (Deta116
EMPLOYEE BENEFIT PLANS (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Retirement expense | $ 1,900 | $ 2,000 | $ 1,600 |
Supplemental Employee Retirement Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Retirement expense | 1,580 | 1,513 | 1,834 |
Contributions paid | $ 367 | $ 320 | $ 276 |
EMPLOYEE BENEFIT PLANS (Deta117
EMPLOYEE BENEFIT PLANS (Details 3) - Supplemental Executive Retirement Plans [Member] $ in Thousands | Dec. 31, 2017USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | $ 408 |
2,018 | 481 |
2,019 | 467 |
2,020 | 461 |
2,021 | 454 |
2023-2027 | $ 5,366 |
EMPLOYEE BENEFIT PLANS (Deta118
EMPLOYEE BENEFIT PLANS (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change in plan assets | |||
Fair value of plan assets at beginning of year | $ 16,000 | ||
Fair value of plan assets at end of year | 16,200 | $ 16,000 | |
Supplemental Executive Retirement Plans [Member] | |||
Change in accumulated benefit obligation | |||
Benefit obligation at beginning of year | 14,177 | 13,290 | $ 12,537 |
Accumulated service cost | 423 | 395 | 742 |
Interest cost | 547 | 539 | 470 |
Actuarial loss/(gain) | 969 | 273 | (183) |
Accumulated benefit obligation at end of year | 15,749 | 14,177 | 13,290 |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | (367) | (320) | (276) |
Change in plan assets | |||
Employer contribution | 367 | 320 | 276 |
Defined Benefit Plan, Plan Assets, Benefits Paid | (367) | (320) | (276) |
Funded status at end of year | (15,749) | (14,177) | (13,290) |
Assets | 0 | 0 | 0 |
Liabilities | (15,749) | (14,177) | (13,290) |
Accrued benefit cost | (15,749) | (14,177) | (13,290) |
Amounts recognized in accumulated other comprehensive income (“AOCI”) | |||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | 3,465 | 2,830 | 2,859 |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, Prior Service Cost (Credit), before Tax | 1,047 | 1,323 | 1,599 |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | 4,512 | 4,153 | 4,458 |
Information for plans with an accumulated benefit obligation in excess of plan assets | |||
Projected benefit obligation | 15,749 | 14,177 | 13,290 |
Accumulated benefit obligation | 15,749 | 14,177 | 13,290 |
Net periodic benefit cost | |||
Service cost | 423 | 395 | 742 |
Interest cost | 547 | 539 | 470 |
Amortization of prior service cost | 276 | 276 | 305 |
Recognized net actuarial loss | 334 | 303 | 317 |
Net periodic benefit cost | 1,580 | 1,513 | 1,834 |
Amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit cost over next fiscal year | |||
Net actuarial loss | 415 | 338 | 270 |
Net prior service cost | $ 276 | $ 276 | $ 276 |
Minimum [Member] | Supplemental Executive Retirement Plans [Member] | |||
Amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit cost over next fiscal year | |||
Discount rate used for benefit obligation | 2.48% | 2.49% | 2.49% |
Discount rate used for net periodic benefit cost | 2.49% | 2.49% | 2.24% |
Maximum [Member] | Supplemental Executive Retirement Plans [Member] | |||
Amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit cost over next fiscal year | |||
Discount rate used for benefit obligation | 3.45% | 3.94% | 4.16% |
Discount rate used for net periodic benefit cost | 3.94% | 4.16% | 3.84% |
EMPLOYEE BENEFIT PLANS (Deta119
EMPLOYEE BENEFIT PLANS (Details Textual) | 12 Months Ended | ||
Dec. 31, 2017USD ($)ageshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) | |
Defined Contribution Plan Disclosure [Line Items] | |||
Incentive plans and discretionary bonus expense | $ 10,900,000 | $ 10,300,000 | $ 10,300,000 |
Employer matching contribution percent | 25.00% | ||
Employee contribution percent | 6.00% | ||
Nondiscretionary requisite service period | 1 year | ||
Defined Contribution Plan, Nondiscretionary Requisite service hours | 1,000 | ||
Nondiscretionary employer contribution, percent up to social security limit | 5.00% | ||
Nondiscretionary employer contribution, percent over social security limit | 10.00% | ||
Supplemental Unemployment Benefit, Salary Continuation Expense | $ 11,000 | 13,000 | 11,000 |
Deferred Compensation Arrangement with Individual, Contributions by Employer | $ 143,000 | 142,000 | 149,000 |
Multiemployer Plans [Abstract] | |||
Significance of contributions percentage | 5.00% | ||
Defined benefit plan expense | $ 1,900,000 | 2,000,000 | 1,600,000 |
Postretirement Benefits [Abstract] | |||
Retirement age | age | 65 | ||
Service period to be eligible for postretirement benefit | 10 years | ||
Death benefit | $ 5,000 | ||
Supplemental Executive Retirement Plans [Abstract] | |||
Plan assets | $ 16,200,000 | $ 16,000,000 | |
Deferred Compensation Arrangements [Abstract] | |||
Deferred compensation, shares provided for the plan (in shares) | shares | 161,961 | 168,352 | |
Deferred compensation, recorded liability | $ 4,500,000 | $ 4,200,000 | |
401(k) Restoration Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan expense | 267,000 | 425,000 | 232,000 |
Employee Savings Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan expense | 5,000,000 | 4,800,000 | 4,500,000 |
Executive Vice President [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Supplemental Unemployment Benefits, Salary Continuation | 279,000 | 272,000 | 222,000 |
Director [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Supplemental Unemployment Benefits, Salary Continuation | $ 38,000 | $ 40,000 | $ 35,000 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | $ 1,324,000 | $ 804,000 |
Assets | ||
Securities - available for sale | 447,498,000 | 363,644,000 |
Disposal Group, Including Discontinued Operation, Mortgage Loans | 4,768,000 | 6,139,000 |
Total | 17,318,000 | 22,331,000 |
Fair Value, Measurements, Recurring [Member] | ||
Liabilities | ||
Total recurring fair value measurements | 455,373,000 | 371,432,000 |
Fair Value, Measurements, Recurring [Member] | Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 1,324,000 | 804,000 |
Fair Value, Measurements, Recurring [Member] | U.S. Government agency securities | ||
Assets | ||
Securities - available for sale | 35,430,000 | 24,244,000 |
Fair Value, Measurements, Recurring [Member] | Agency mortgage-backed securities | ||
Assets | ||
Securities - available for sale | 215,764,000 | 175,384,000 |
Fair Value, Measurements, Recurring [Member] | Agency collateralized mortgage obligations | ||
Assets | ||
Securities - available for sale | 122,012,000 | 99,868,000 |
Fair Value, Measurements, Recurring [Member] | State, county, and municipal securities | ||
Assets | ||
Securities - available for sale | 2,274,000 | 3,793,000 |
Fair Value, Measurements, Recurring [Member] | Single issuer trust preferred securities issued by banks and insurers | ||
Assets | ||
Securities - available for sale | 2,016,000 | 2,311,000 |
Fair Value, Measurements, Recurring [Member] | Pooled trust preferred securities issued by banks and insurers | ||
Assets | ||
Securities - available for sale | 1,640,000 | 1,584,000 |
Fair Value, Measurements, Recurring [Member] | Small Business Administration Pooled Securities [Member] | ||
Assets | ||
Securities - available for sale | 47,778,000 | 37,189,000 |
Fair Value, Measurements, Recurring [Member] | Equity securities | ||
Assets | ||
Securities - available for sale | 20,584,000 | 19,271,000 |
Fair Value, Measurements, Recurring [Member] | Loans held for sale | ||
Assets | ||
Disposal Group, Including Discontinued Operation, Mortgage Loans | 4,768,000 | 6,139,000 |
Fair Value, Measurements, Recurring [Member] | Derivative instruments | ||
Assets | ||
Total | 17,476,000 | 22,761,000 |
Fair Value, Measurements, Recurring [Member] | Derivative instruments | ||
Liabilities | ||
Liabilities | 15,693,000 | 21,916,000 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Liabilities | ||
Total recurring fair value measurements | 21,908,000 | 20,075,000 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Trading securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading Securities | 1,324,000 | 804,000 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | State, county, and municipal securities | ||
Assets | ||
Securities - available for sale | 0 | |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Small Business Administration Pooled Securities [Member] | ||
Assets | ||
Securities - available for sale | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity securities | ||
Assets | ||
Securities - available for sale | 20,584,000 | 19,271,000 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Liabilities | ||
Total recurring fair value measurements | 431,825,000 | 349,773,000 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Government agency securities | ||
Assets | ||
Securities - available for sale | 35,430,000 | 24,244,000 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Agency mortgage-backed securities | ||
Assets | ||
Securities - available for sale | 215,764,000 | 175,384,000 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Agency collateralized mortgage obligations | ||
Assets | ||
Securities - available for sale | 122,012,000 | 99,868,000 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | State, county, and municipal securities | ||
Assets | ||
Securities - available for sale | 2,274,000 | 3,793,000 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Single issuer trust preferred securities issued by banks and insurers | ||
Assets | ||
Securities - available for sale | 2,016,000 | 2,311,000 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Small Business Administration Pooled Securities [Member] | ||
Assets | ||
Securities - available for sale | 47,778,000 | 37,189,000 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Loans held for sale | ||
Assets | ||
Securities - available for sale | 4,768,000 | 6,139,000 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Derivative instruments | ||
Assets | ||
Total | 17,476,000 | 22,761,000 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Derivative instruments | ||
Liabilities | ||
Liabilities | 15,693,000 | 21,916,000 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Liabilities | ||
Total recurring fair value measurements | 1,640,000 | 1,584,000 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Government agency securities | ||
Assets | ||
Securities - available for sale | ||
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | State, county, and municipal securities | ||
Assets | ||
Securities - available for sale | 0 | |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Pooled trust preferred securities issued by banks and insurers | ||
Assets | ||
Securities - available for sale | 1,640,000 | 1,584,000 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Small Business Administration Pooled Securities [Member] | ||
Assets | ||
Securities - available for sale | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Assets | ||
Assets And Liabilities Fair Value Disclosure Nonrecurring | 34,179,000 | 38,147,000 |
Fair Value, Measurements, Nonrecurring [Member] | Collateral dependent impaired loans | ||
Assets | ||
Assets nonrecurring | 33,567,000 | 33,974,000 |
Fair Value, Measurements, Nonrecurring [Member] | Other real estate owned and other foreclosed assets | ||
Assets | ||
Assets nonrecurring | 612,000 | 4,173,000 |
Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets | ||
Assets And Liabilities Fair Value Disclosure Nonrecurring | 34,179,000 | 38,147,000 |
Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Collateral dependent impaired loans | ||
Assets | ||
Assets nonrecurring | 33,567,000 | 33,974,000 |
Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other real estate owned and other foreclosed assets | ||
Assets | ||
Assets nonrecurring | $ 612,000 | $ 4,173,000 |
FAIR VALUE MEASUREMENTS (Det121
FAIR VALUE MEASUREMENTS (Details 1) - Pooled Trust Preferred Securities [Member] - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation for all assets and liabilities measured at fair value on a recurring basis | |||
Beginning balance | $ 1,584 | $ 1,572 | $ 6,321 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 0 | (4,679) |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases, (Sales), Issuances, (Settlements) | (21) | (17) | (84) |
Sales | 77 | 29 | 14 |
Ending Balance | $ 1,640 | $ 1,584 | $ 1,572 |
FAIR VALUE MEASUREMENTS (Det122
FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Fair Value, Assets, Quantitative Information [Line Items] | |||
Securities - available for sale | $ 447,498 | $ 363,644 | |
Weighted Average [Member] | Discounted cash flow methodology [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets, Quantitative Information [Line Items] | |||
Cumulative Prepayment | 2.50% | 2.50% | |
Cumulative Default | 12.40% | 12.80% | |
Loss Given Default | 94.30% | 94.20% | |
Cure Given Default | 60.90% | 60.90% | |
Pooled Trust Preferred Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets, Quantitative Information [Line Items] | |||
Securities - available for sale | $ 1,640 | $ 1,584 | |
Pooled Trust Preferred Securities [Member] | Minimum [Member] | Discounted cash flow methodology [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets, Quantitative Information [Line Items] | |||
Cumulative Prepayment | 0.00% | 0.00% | |
Cumulative Default | 5.00% | 5.00% | |
Loss Given Default | 85.00% | 85.00% | |
Cure Given Default | 0.00% | 0.00% | |
Pooled Trust Preferred Securities [Member] | Maximum [Member] | Discounted cash flow methodology [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets, Quantitative Information [Line Items] | |||
Cumulative Prepayment | 61.00% | 62.00% | |
Cumulative Default | 100.00% | 100.00% | |
Loss Given Default | 100.00% | 100.00% | |
Cure Given Default | 75.00% | 75.00% | |
Impaired Loans [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets, Quantitative Information [Line Items] | |||
Assets, Fair Value Disclosure, Recurring | [1] | $ 33,567 | $ 33,974 |
Other real estate owned and other foreclosed assets | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets, Quantitative Information [Line Items] | |||
Assets, Fair Value Disclosure, Recurring | [1] | $ 612 | $ 4,173 |
[1] | Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of these possible adjustments may vary. |
FAIR VALUE MEASUREMENTS (Det123
FAIR VALUE MEASUREMENTS (Details 3) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Assets, Fair Value Disclosure [Abstract] | |||
Held-to-maturity Securities | $ 497,688 | $ 487,076 | |
Loans and Leases Receivable, Net Amount | 6,294,910 | 5,938,039 | |
Securities held to maturity, fair value | 494,194 | 485,650 | |
Federal Home Loan Bank Stock | 11,597 | 11,497 | |
Bank Owned Life Insurance | 151,528 | 144,503 | |
Liabilities, Fair Value Disclosure [Abstract] | |||
Advances from Federal Home Loan Banks | 53,264 | 50,819 | |
Junior subordinated debentures | 73,073 | 73,107 | |
Subordinated Debt | 34,682 | 34,635 | |
Deposits [Member] | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Financial Liabilities Book Value | [1] | 6,084,952 | 5,763,101 |
Accrued Liabilities, Fair Value Disclosure | [1] | 6,084,952 | 5,763,101 |
Bank Time Deposits [Member] | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Financial Liabilities Book Value | [2] | 644,301 | 649,152 |
Accrued Liabilities, Fair Value Disclosure | [2] | 639,060 | 647,038 |
Federal Home Loan Bank Advances [Member] | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Advances from Federal Home Loan Banks | [2] | 53,264 | 50,819 |
Federal Home Loan Bank Borrowings, Fair Value Disclosure | [2] | 52,111 | 50,898 |
Customer Repurchase Agreements [Member] | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Customer Repurchase Agreements and other short-term borrowings | [2] | 162,679 | 176,913 |
Accrued Liabilities, Fair Value Disclosure | [2] | 162,679 | 176,913 |
Junior Subordinated Debt [Member] | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Junior subordinated debentures | [3] | 73,073 | 73,107 |
Accrued Liabilities, Fair Value Disclosure | [3] | 74,680 | 72,510 |
Subordinated Debt [Member] | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Subordinated Debt | [2] | 34,682 | 34,635 |
Accrued Liabilities, Fair Value Disclosure | [2] | 32,707 | 34,241 |
Significant Other Observable Inputs (Level 2) [Member] | Deposits [Member] | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Accrued Liabilities, Fair Value Disclosure | [1] | 6,084,952 | 5,763,101 |
Significant Other Observable Inputs (Level 2) [Member] | Bank Time Deposits [Member] | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Accrued Liabilities, Fair Value Disclosure | [2] | 639,060 | 647,038 |
Significant Other Observable Inputs (Level 2) [Member] | Federal Home Loan Bank Advances [Member] | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Federal Home Loan Bank Borrowings, Fair Value Disclosure | [2] | 52,111 | |
Accrued Liabilities, Fair Value Disclosure | [2] | 50,898 | |
Significant Other Observable Inputs (Level 2) [Member] | Junior Subordinated Debt [Member] | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Accrued Liabilities, Fair Value Disclosure | [3] | 74,680 | 72,510 |
Significant Unobservable Inputs (Level 3) [Member] | Customer Repurchase Agreements [Member] | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Accrued Liabilities, Fair Value Disclosure | [2] | 162,679 | 176,913 |
Significant Unobservable Inputs (Level 3) [Member] | Subordinated Debt [Member] | |||
Liabilities, Fair Value Disclosure [Abstract] | |||
Accrued Liabilities, Fair Value Disclosure | [2] | 32,707 | 34,241 |
US Treasury Securities [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Held-to-maturity Securities | [4] | 1,006 | 1,007 |
Securities held to maturity, fair value | [4] | 1,035 | 1,054 |
US Treasury Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Securities held to maturity, fair value | [4] | 1,035 | 1,054 |
Agency mortgage-backed securities | |||
Assets, Fair Value Disclosure [Abstract] | |||
Held-to-maturity Securities | [4] | 204,768 | 156,088 |
Securities held to maturity, fair value | [4] | 205,823 | 157,504 |
Agency mortgage-backed securities | Significant Other Observable Inputs (Level 2) [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Securities held to maturity, fair value | [4] | 205,823 | 157,504 |
Agency collateralized mortgage obligations | |||
Assets, Fair Value Disclosure [Abstract] | |||
Held-to-maturity Securities | [4] | 262,998 | 297,445 |
Securities held to maturity, fair value | [4] | 258,408 | 294,650 |
Agency collateralized mortgage obligations | Significant Other Observable Inputs (Level 2) [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Securities held to maturity, fair value | [4] | 258,408 | 294,650 |
Single issuer trust preferred securities issued by banks and insurers | |||
Assets, Fair Value Disclosure [Abstract] | |||
Held-to-maturity Securities | [4] | 1,500 | 1,500 |
Securities held to maturity, fair value | [4] | 1,529 | 1,544 |
Single issuer trust preferred securities issued by banks and insurers | Significant Other Observable Inputs (Level 2) [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Securities held to maturity, fair value | [4] | 1,529 | 1,544 |
Small Business Administration Pooled Securities [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Held-to-maturity Securities | [4] | 27,416 | 31,036 |
Securities held to maturity, fair value | [4] | 27,399 | 30,898 |
Small Business Administration Pooled Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Securities held to maturity, fair value | [4] | 0 | 0 |
Small Business Administration Pooled Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Securities held to maturity, fair value | [4] | 27,399 | 30,898 |
Small Business Administration Pooled Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Securities held to maturity, fair value | [4] | 0 | 0 |
Loans Net Of Allowance For Loan Loses [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Loans and Leases Receivable, Net Amount | [5] | 6,261,343 | 5,904,065 |
Loans, net of allowance for loan losses | [5] | 6,116,051 | 5,784,778 |
Loans Net Of Allowance For Loan Loses [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Loans, net of allowance for loan losses | [5] | 6,116,051 | 5,784,778 |
Investment in Federal Home Loan Bank Stock [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Federal Home Loan Bank Stock | [6] | 11,597 | 11,497 |
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure | [6] | 11,597 | 11,497 |
Investment in Federal Home Loan Bank Stock [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure | [6] | 0 | 0 |
Investment in Federal Home Loan Bank Stock [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure | [6] | 11,597 | 11,497 |
Investment in Federal Home Loan Bank Stock [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure | [6] | 0 | 0 |
Cash Surrender Value [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Bank Owned Life Insurance | [7] | 151,528 | 144,503 |
Cash Surrender Value, Fair Value Disclosure | [7] | 151,528 | 144,503 |
Cash Surrender Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash Surrender Value, Fair Value Disclosure | [7] | 0 | 0 |
Cash Surrender Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash Surrender Value, Fair Value Disclosure | [7] | 151,528 | 144,503 |
Cash Surrender Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Assets, Fair Value Disclosure [Abstract] | |||
Cash Surrender Value, Fair Value Disclosure | [7] | $ 0 | $ 0 |
[1] | Fair value of demand deposits, savings and interest checking accounts and money market deposits is the amount payable on demand at the reporting date. | ||
[2] | Fair value was determined by discounting anticipated future cash payments using rates currently available for instruments with similar remaining maturities. | ||
[3] | Fair value was determined based upon market prices of securities with similar terms and maturities. | ||
[4] | The fair values presented are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments and/or discounted cash flow analysis. | ||
[5] | Fair value is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities or cash flows. Additionally, this amount excludes collateral dependent impaired loans, which are deemed to be marked to fair value on a nonrecurring basis. | ||
[6] | FHLB stock has no quoted market value and is carried at cost, therefore the carrying amount approximates fair value. | ||
[7] | Cash surrender value of life insurance is recorded at its cash surrender value (or the amount that can be realized upon surrender of the policy), therefore carrying amount approximates fair value. |
OTHER COMPREHENSIVE LOSS (Detai
OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax, Portion Attributable to Parent | $ 322 | $ 699 | $ 1,269 | |
Other Comprehensive Income (Loss), before Tax [Abstract] | ||||
Change in fair value of securities available for sale, pre tax amount | 996 | 1,858 | 3,757 | |
Change in fair value of cash flow hedges, pre tax amount | 307 | 1,133 | (776) | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Borrowings Expense, before Tax | [1] | (441) | (2,520) | (2,828) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax, Portion Attributable to Parent | 748 | 3,653 | 2,052 | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax | (995) | (383) | 438 | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | 278 | 238 | 243 | |
Amortization of certain costs included in net periodic retirement costs, pre tax amount | (276) | (276) | (294) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | [2] | (441) | 131 | 975 |
Total other comprehensive loss, pre tax amount | (692) | 1,952 | (325) | |
Other Comprehensive Income (Loss), Tax [Abstract] | ||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | 321 | 710 | 1,434 | |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | (125) | (453) | 299 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Borrowings Expense, Tax | [1] | 180 | 1,030 | 1,152 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax, Portion Attributable to Parent | (305) | (1,483) | (853) | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax | 407 | 157 | (193) | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax | (113) | (97) | (99) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, Tax | (113) | (113) | (119) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | [2] | 181 | (53) | (411) |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 198 | (837) | 5 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | (675) | (1,148) | (2,323) | |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | (677) | (1,133) | (2,083) | |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 182 | 680 | (477) | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Borrowings Expense, Net of Tax | [1] | (261) | (1,490) | (1,676) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent | 443 | 2,170 | 1,199 | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax | (588) | (226) | 245 | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | 165 | 141 | 144 | |
Amortization of certain costs included in net periodic retirement costs, after tax amount | 163 | 163 | 175 | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | [2] | (260) | 78 | 564 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (494) | 1,115 | (320) | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 3 | (26) | (405) | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | (1) | 11 | 165 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 2 | (15) | (240) | |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax, Portion Attributable to Parent | $ (999) | $ (1,832) | $ (3,352) | |
[1] | Includes the amortization of the remaining balance of a realized but unrecognized gain, net of tax, from the termination of interest rate swaps in 2009. The original gain of $1.4 million, net of tax, will be recognized in earnings through December 2018, the original maturity date of the swap. The balance of this gain had amortized to $137,000, $281,000, and $427,000 at December 31, 2017, 2016, and 2015, respectively. | |||
[2] | The amortization of prior service costs is included in the computation of net periodic pension costs as disclosed in Note 15 - Employee Benefit Plans. |
OTHER COMPREHENSIVE LOSS (De125
OTHER COMPREHENSIVE LOSS (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | $ (1,337) | $ (2,452) | $ (2,132) |
Total other comprehensive income (loss) | (494) | 1,115 | (320) |
Ending Balance | (1,831) | (1,337) | (2,452) |
Unrealized Gain (Loss) on Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | 173 | 1,306 | 3,389 |
Total other comprehensive income (loss) | (677) | (1,133) | (2,083) |
Ending Balance | (504) | 173 | 1,306 |
Unrealized Gain (Loss) on Cash Flow Hedge | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | 361 | (1,955) | (3,298) |
Total other comprehensive income (loss) | 587 | 2,316 | 1,343 |
Ending Balance | 948 | 361 | (1,955) |
Deferred Gain on Hedge Transactions | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | 281 | 427 | 571 |
Total other comprehensive income (loss) | (144) | (146) | (144) |
Ending Balance | 137 | 281 | 427 |
Defined Benefit Postretirement Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | (2,152) | (2,230) | (2,794) |
Total other comprehensive income (loss) | (260) | 78 | 564 |
Ending Balance | $ (2,412) | $ (2,152) | $ (2,230) |
OTHER COMPREHENSIVE LOSS (De126
OTHER COMPREHENSIVE LOSS (Details Textual) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2009 |
Equity [Abstract] | ||||
Gain on interest rate swaps | $ 137,000 | $ 281,000 | $ 427,000 | $ 1,400,000 |
COMMITMENTS AND CONTINGENCIES F
COMMITMENTS AND CONTINGENCIES Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet financial instruments | $ 2,443,478 | $ 2,227,955 |
Standby letters of credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet financial instruments | 15,534 | 18,190 |
Deferred standby letter of credit fees [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet financial instruments | $ 102 | $ 108 |
COMMITMENTS AND CONTINGENCIES L
COMMITMENTS AND CONTINGENCIES Lease Commitments (Details 1) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,017 | $ 9,023 |
2,018 | 8,808 |
2,019 | 7,771 |
2,020 | 6,508 |
2,021 | 4,437 |
Thereafter | 8,214 |
Total future minimum rentals | $ 44,761 |
COMMITMENTS AND CONTINGENCIE129
COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Leases, Rent Expense, Net [Abstract] | |||
Operating lease rent expense | $ 8.6 | $ 8.5 | $ 8.2 |
Reserve requirement | $ 35.8 | $ 31.8 | |
Minimum [Member] | |||
Operating Leases, Rent Expense, Net [Abstract] | |||
Operating lease renewal period option | 4 months | ||
Maximum [Member] | |||
Operating Leases, Rent Expense, Net [Abstract] | |||
Operating lease renewal period option | 10 years |
REGULATORY CAPITAL REQUIREME130
REGULATORY CAPITAL REQUIREMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Company (consolidated) [Member] | ||
Total capital (to risk weighted assets): | ||
Actual | $ 886,807 | $ 824,265 |
Actual Ratio | 13.82% | 13.60% |
Capital Required for Capital Adequacy | $ 513,398 | $ 484,942 |
For Capital Adequacy Purposes Ratio | 8.00% | 8.00% |
Common Equity Tier One Capital | $ 718,995 | $ 656,080 |
Common Equity tier One Capital to Risk Weighted Assets | 11.20% | 10.82% |
Common Equity Tier One Capital Required for Capital Adequacy | $ 288,787 | $ 272,780 |
Common Equity Tier One Capital for Capitalized Adequacy to Risk Weighted Assets | 4.50% | 4.50% |
Tier 1 capital (to risk weighted assets): | ||
Actual | $ 789,992 | $ 727,070 |
Actual Ratio | 12.31% | 11.99% |
For Capital Adequacy Purposes | $ 385,049 | $ 363,706 |
For Capital Adequacy Purposes Ratio | 6.00% | 6.00% |
Tier 1 capital (to average assets): | ||
Actual | $ 789,992 | $ 727,070 |
Actual Ratio | 10.04% | 9.77% |
For Capital Adequacy Purposes | $ 314,756 | $ 297,748 |
For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Bank [Member] | ||
Total capital (to risk weighted assets): | ||
Actual | $ 846,147 | $ 788,320 |
Actual Ratio | 13.19% | 13.01% |
Capital Required for Capital Adequacy | $ 513,175 | $ 484,834 |
For Capital Adequacy Purposes Ratio | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions | $ 641,469 | $ 606,042 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% |
Common Equity Tier One Capital | $ 784,014 | $ 725,760 |
Common Equity tier One Capital to Risk Weighted Assets | 12.22% | 11.98% |
Common Equity Tier One Capital Required for Capital Adequacy | $ 288,661 | $ 272,719 |
Common Equity Tier One Capital for Capitalized Adequacy to Risk Weighted Assets | 4.50% | 4.50% |
Common Equity Tier 1 Capital to be Well Capitalized | $ 416,955 | $ 393,927 |
Common Equity Tier One Capital to be Well Capitalized to Risk Weighted Assets | 6.50% | 6.50% |
Tier 1 capital (to risk weighted assets): | ||
Actual | $ 784,014 | $ 725,760 |
Actual Ratio | 12.22% | 11.98% |
For Capital Adequacy Purposes | $ 384,881 | $ 363,625 |
For Capital Adequacy Purposes Ratio | 6.00% | 6.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions | $ 513,175 | $ 484,834 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 8.00% | 8.00% |
Tier 1 capital (to average assets): | ||
Actual | $ 784,014 | $ 725,760 |
Actual Ratio | 9.97% | 9.76% |
For Capital Adequacy Purposes | $ 314,630 | $ 297,589 |
For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Correction Action Provisions | $ 393,288 | $ 371,986 |
To Be Well Capitalized Under Prompt Correction Action Provisions Ratio | 5.00% | 5.00% |
REGULATORY CAPITAL REQUIREME131
REGULATORY CAPITAL REQUIREMENTS Regulatory Capital Requirements (Details Textual) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Dividends received from subsidiaries(1) | $ (46.9) | $ (44.5) |
Junior Subordinated Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 71 | $ 71 |
PARENT COMPANY FINANCIALS ON132
PARENT COMPANY FINANCIALS ONLY (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets: | |||||
Deferred tax asset | $ 32,173 | $ 49,354 | |||
Derivative Asset | 17,318 | 22,331 | |||
Total assets | 8,082,029 | 7,709,375 | |||
Liabilities and stockholders’ equity | |||||
Junior subordinated debentures | 73,073 | 73,107 | |||
Subordinated Debt | 34,682 | 34,635 | |||
Other liabilities | 85,269 | 96,958 | |||
Total liabilities | 7,138,220 | 6,844,685 | |||
Stockholders’ equity | 943,809 | 864,690 | $ 771,463 | $ 640,527 | |
Liabilities and Equity | 8,082,029 | 7,709,375 | |||
Consolidation, Eliminations [Member] | |||||
Assets: | |||||
Investments in subsidiaries | 1,000,000 | 933,600 | |||
Parent Company [Member] | |||||
Assets: | |||||
Cash | [1] | 48,131 | 42,596 | ||
Investments in subsidiaries | [2] | 1,010,125 | 935,778 | ||
Prepaid income taxes | 786 | 625 | |||
Deferred tax asset | 96 | 216 | |||
Derivative Asset | [1] | 1,535 | 1,364 | ||
Total assets | 1,060,673 | 980,579 | |||
Liabilities and stockholders’ equity | |||||
Dividends payable | 8,786 | 7,834 | |||
Junior subordinated debentures | 73,073 | 73,107 | |||
Subordinated Debt | 34,682 | 34,635 | |||
Other liabilities | 323 | 313 | |||
Total liabilities | 116,864 | 115,889 | |||
Stockholders’ equity | 943,809 | 864,690 | |||
Liabilities and Equity | $ 1,060,673 | $ 980,579 | |||
[1] | Entire balance eliminates in consolidation. | ||||
[2] | $1.0 billion and $933.6 million eliminate in consolidation at December 31, 2017 and 2016, respectively. |
PARENT COMPANY FINANCIALS ON133
PARENT COMPANY FINANCIALS ONLY (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Derivative Asset | $ 17,318,000 | $ 22,331,000 | $ 17,318,000 | $ 22,331,000 | ||||||||
Income | ||||||||||||
Dividends received from subsidiaries(1) | 46,900,000 | 44,500,000 | ||||||||||
Expenses | ||||||||||||
Interest expense | 5,044,000 | $ 4,705,000 | $ 4,378,000 | $ 4,207,000 | 4,676,000 | $ 4,640,000 | $ 4,627,000 | $ 4,850,000 | 18,334,000 | 18,793,000 | $ 20,617,000 | |
Income tax benefit | 14,915,000 | 12,681,000 | 10,731,000 | 9,014,000 | 7,698,000 | 9,793,000 | 9,508,000 | 8,428,000 | 47,341,000 | 35,427,000 | 27,218,000 | |
Net Income | 22,064,000 | $ 23,852,000 | $ 20,563,000 | $ 20,725,000 | 17,179,000 | $ 20,484,000 | $ 20,374,000 | $ 18,611,000 | 87,204,000 | 76,648,000 | 64,960,000 | |
Parent Company [Member] | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Dividend Income, Operating | [1] | 47,006,000 | 44,598,000 | 38,153,000 | ||||||||
Derivative Asset | [2] | $ 1,535,000 | $ 1,364,000 | 1,535,000 | 1,364,000 | |||||||
Income | ||||||||||||
Interest income(2) | [3] | 50,000 | 98,000 | 78,000 | ||||||||
Total income | 47,056,000 | 44,696,000 | 38,231,000 | |||||||||
Expenses | ||||||||||||
Interest expense | 3,995,000 | 5,901,000 | 5,769,000 | |||||||||
Other expenses | 29,000 | |||||||||||
Total expenses | 3,995,000 | 5,901,000 | 5,798,000 | |||||||||
Income before income taxes and equity in undistributed income of subsidiaries | 43,061,000 | 38,795,000 | 32,433,000 | |||||||||
Income tax benefit | (1,523,000) | (1,791,000) | (2,301,000) | |||||||||
Income of parent company | 44,584,000 | 40,586,000 | 34,734,000 | |||||||||
Equity in undistributed income of subsidiaries | 42,620,000 | 36,062,000 | 30,226,000 | |||||||||
Net Income | 87,204,000 | 76,648,000 | 64,960,000 | |||||||||
Consolidation, Eliminations [Member] | ||||||||||||
Income | ||||||||||||
Dividends received from subsidiaries(1) | $ 67,000 | $ 62,000 | $ 55,000 | |||||||||
[1] | Income of $67,000, $62,000 and $55,000 was not eliminated in consolidation for the years ended December 31, 2017, 2016, and 2015, respectively. | |||||||||||
[2] | Entire balance eliminates in consolidation. | |||||||||||
[3] | Entire balance eliminated in consolidation. |
PARENT COMPANY FINANCIALS ON134
PARENT COMPANY FINANCIALS ONLY (Details 2) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Dividends received from subsidiaries(1) | $ (46,900,000) | $ (44,500,000) | ||||||||||
Net income | $ 22,064,000 | $ 23,852,000 | $ 20,563,000 | $ 20,725,000 | $ 17,179,000 | $ 20,484,000 | $ 20,374,000 | $ 18,611,000 | 87,204,000 | 76,648,000 | $ 64,960,000 | |
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||
Deferred income tax expense | 9,211,000 | (5,000) | 10,220,000 | |||||||||
Change in other assets | 20,022,000 | 7,627,000 | 3,842,000 | |||||||||
Change in other liabilities | (3,825,000) | (8,738,000) | (2,450,000) | |||||||||
Net cash provided by operating activities | 130,909,000 | 93,336,000 | 89,543,000 | |||||||||
Cash flows used in investing activities | ||||||||||||
Net cash used in investing activities | (316,769,000) | (238,886,000) | (205,541,000) | |||||||||
Cash flows provided by financing activities | ||||||||||||
Restricted stock awards issued, net of awards surrendered | (1,422,000) | (696,000) | (657,000) | |||||||||
Cash received from stock option exercises | 214,000 | 201,000 | 1,367,000 | |||||||||
Proceeds from shares issued under the direct stock purchase plan | 1,636,000 | 2,323,000 | 2,695,000 | |||||||||
Common dividends paid | (34,045,000) | (29,711,000) | (26,172,000) | |||||||||
Net cash provided by financing activities | 109,881,000 | 158,880,000 | 213,509,000 | |||||||||
Net increase (decrease) in cash and cash equivalents | (75,979,000) | 13,330,000 | 97,511,000 | |||||||||
Cash and cash equivalents at beginning of year | 289,095,000 | 275,765,000 | 289,095,000 | 275,765,000 | 178,254,000 | |||||||
Cash and cash equivalents at end of period | 213,116,000 | 289,095,000 | 213,116,000 | 289,095,000 | 275,765,000 | |||||||
Consolidation, Eliminations [Member] | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Dividends received from subsidiaries(1) | (67,000) | (62,000) | (55,000) | |||||||||
Investments in subsidiaries | 1,000,000,000 | 933,600,000 | 1,000,000,000 | 933,600,000 | ||||||||
Parent Company [Member] | ||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||
Investments in subsidiaries | [1] | 1,010,125,000 | 935,778,000 | 1,010,125,000 | 935,778,000 | |||||||
Net income | 87,204,000 | 76,648,000 | 64,960,000 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||
Amortization (accretion) | 12,000 | (154,000) | (150,000) | |||||||||
Deferred income tax expense | 51,000 | 678,000 | 3,266,000 | |||||||||
Change in other assets | (99,000) | 423,000 | 7,488,000 | |||||||||
Change in other liabilities | (562,000) | (5,532,000) | (254,000) | |||||||||
Equity in undistributed income of subsidiaries | (42,620,000) | (36,062,000) | (30,226,000) | |||||||||
Net cash provided by operating activities | 43,986,000 | 36,001,000 | 45,084,000 | |||||||||
Cash flows used in investing activities | ||||||||||||
Cash paid for acquisitions, net of cash acquired (1) | [2] | (4,834,000) | (950,000) | (51,680,000) | ||||||||
Net cash used in investing activities | (4,834,000) | (950,000) | (51,680,000) | |||||||||
Cash flows provided by financing activities | ||||||||||||
Restricted stock awards issued, net of awards surrendered | (1,422,000) | (696,000) | (657,000) | |||||||||
Cash received from stock option exercises | 214,000 | 201,000 | 1,367,000 | |||||||||
Proceeds from shares issued under the direct stock purchase plan | 1,636,000 | 2,323,000 | 2,695,000 | |||||||||
Common dividends paid | (34,045,000) | (29,711,000) | (26,172,000) | |||||||||
Net cash provided by financing activities | (33,617,000) | (27,883,000) | (22,767,000) | |||||||||
Net increase (decrease) in cash and cash equivalents | 5,535,000 | 7,168,000 | (29,363,000) | |||||||||
Cash and cash equivalents at beginning of year | $ 42,596,000 | $ 35,428,000 | 42,596,000 | 35,428,000 | 64,791,000 | |||||||
Cash and cash equivalents at end of period | 48,131,000 | 42,596,000 | 48,131,000 | 42,596,000 | $ 35,428,000 | |||||||
Cash | [3] | $ 48,131,000 | $ 42,596,000 | $ 48,131,000 | $ 42,596,000 | |||||||
[1] | $1.0 billion and $933.6 million eliminate in consolidation at December 31, 2017 and 2016, respectively. | |||||||||||
[2] | The majority of the net assets acquired at the parent company represented each of the acquired companies' investments in their wholly owned subsidiaries, which were eliminated in consolidation at December 31, 2017, 2016, and 2015, respectively. | |||||||||||
[3] | Entire balance eliminates in consolidation. |
SELECTED QUARTERLY FINANCIAL135
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest income | $ 72,876,000 | $ 71,778,000 | $ 68,133,000 | $ 64,407,000 | $ 63,428,000 | $ 62,308,000 | $ 61,160,000 | $ 59,741,000 | $ 277,194,000 | $ 246,637,000 | $ 235,545,000 |
Interest expense | 5,044,000 | 4,705,000 | 4,378,000 | 4,207,000 | 4,676,000 | 4,640,000 | 4,627,000 | 4,850,000 | 18,334,000 | 18,793,000 | 20,617,000 |
Net interest income | 67,832,000 | 67,073,000 | 63,755,000 | 60,200,000 | 58,752,000 | 57,668,000 | 56,533,000 | 54,891,000 | 258,860,000 | 227,844,000 | 214,928,000 |
Provision (benefit) | 1,300,000 | 0 | 1,050,000 | 600,000 | 4,000,000 | 950,000 | 600,000 | 525,000 | 2,950,000 | 6,075,000 | 1,500,000 |
Total noninterest income | 21,914,000 | 20,770,000 | 21,398,000 | 18,912,000 | 21,762,000 | 20,416,000 | 21,095,000 | 19,155,000 | 82,994,000 | 82,428,000 | 75,888,000 |
Total noninterest expenses | 51,467,000 | 51,310,000 | 52,809,000 | 48,773,000 | 51,637,000 | 46,857,000 | 47,146,000 | 46,482,000 | 204,359,000 | 192,122,000 | 197,138,000 |
Provision for income taxes | 14,915,000 | 12,681,000 | 10,731,000 | 9,014,000 | 7,698,000 | 9,793,000 | 9,508,000 | 8,428,000 | 47,341,000 | 35,427,000 | 27,218,000 |
Net Income | $ 22,064,000 | $ 23,852,000 | $ 20,563,000 | $ 20,725,000 | $ 17,179,000 | $ 20,484,000 | $ 20,374,000 | $ 18,611,000 | $ 87,204,000 | $ 76,648,000 | $ 64,960,000 |
Basic earnings per share (in dollars per share) | $ 0.80 | $ 0.87 | $ 0.75 | $ 0.77 | $ 0.64 | $ 0.78 | $ 0.77 | $ 0.71 | $ 3.19 | $ 2.90 | $ 2.51 |
Weighted average common shares (basic) (in shares) | 27,445,739 | 27,436,792 | 27,257,799 | 27,029,640 | 26,710,029 | 26,324,316 | 26,304,129 | 26,275,323 | 27,294,028 | 26,404,071 | 25,891,382 |
Diluted earnings per share (in dollars per share) | $ 0.80 | $ 0.87 | $ 0.75 | $ 0.76 | $ 0.64 | $ 0.78 | $ 0.77 | $ 0.71 | $ 3.19 | $ 2.90 | $ 2.50 |
Common share equivalents (in shares) | 77,615 | 76,307 | 74,497 | 81,283 | 60,022 | 53,072 | 47,885 | 43,409 | 78,076 | 51,847 | 68,566 |
Weighted average common shares (diluted) (in shares) | 27,523,354 | 27,513,099 | 27,332,296 | 27,110,923 | 26,770,051 | 26,377,388 | 26,352,014 | 26,318,732 | 27,372,104 | 26,455,918 | 25,959,948 |
Gains (Losses) on Extinguishment of Debt | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 437,000 | $ 0 | $ 437,000 | $ 122,000 |
Acquisition Related Costs | 0 | 0 | 2,909,000 | 484,000 | 4,764,000 | 151,000 | 206,000 | 334,000 | 3,393,000 | 5,455,000 | 10,501,000 |
Total unusual or infrequent expense items | 0 | 0 | 2,909,000 | 484,000 | 4,764,000 | 151,000 | 206,000 | 771,000 | |||
Tax Expense related to a change in tax law | 2,361,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | 466,000 | $ 0 | $ 0 |
Investments in Low Income Housing Projects [Member] | |||||||||||
Tax Expense related to a change in tax law | 466,000 | 466,000 | |||||||||
Net Deferred Tax Asset [Member] | |||||||||||
Tax Expense related to a change in tax law | $ 1,895,000 | $ 1,900,000 |
TRANSACTIONS WITH RELATED PA136
TRANSACTIONS WITH RELATED PARTIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Related Party Transaction [Line Items] | ||||
Loans and Leases Receivable, Related Parties | $ 52,458 | $ 22,795 | $ 24,653 | |
Loans and Leases Receivable, Related Parties, Additions | 36,800 | [1] | 1,718 | |
Loans and Leases Receivable, Related Parties, Collections | $ (7,137) | $ (3,576) | ||
[1] | (1) Includes $31.3 million of loans associated with a newly appointed director during the year, which represent the outstanding loan balances at the effective date of appointment. |
TRANSACTIONS WITH RELATED PA137
TRANSACTIONS WITH RELATED PARTIES Related Parties Textual (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | $ 31,300,000 | ||
Operating Leases, Rent Expense | 8,600,000 | $ 8,500,000 | $ 8,200,000 |
Related Party Deposit Liabilities | 18,300,000 | 14,700,000 | |
Affiliated Entity [Member] | |||
Related Party Transaction [Line Items] | |||
Operating Leases, Rent Expense | $ 0 | $ 0 |