x | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended JUNE 30, 2012 or |
o | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ______ to ______. |
RHODE ISLAND | 05-0404671 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
23 BROAD STREET | ||
WESTERLY, RHODE ISLAND | 02891 | |
(Address of principal executive offices) | (Zip Code) |
(401) 348-1200 |
(Registrant’s telephone number, including area code) |
Large accelerated filer o | Accelerated filer x | |
Non-accelerated filer o | Smaller reporting company o | |
(Do not check if a smaller reporting company) |
FORM 10-Q | ||
WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES | ||
For the Quarter Ended June 30, 2012 | ||
TABLE OF CONTENTS | ||
Page Number | ||
WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES | (Dollars in thousands, |
CONSOLIDATED BALANCE SHEETS (unaudited) | except par value) |
June 30, 2012 | December 31, 2011 | |||||||
Assets: | ||||||||
Cash and due from banks | $66,702 | $82,238 | ||||||
Short-term investments | 3,913 | 4,782 | ||||||
Mortgage loans held for sale, at fair value; amortized cost $22,708 in 2012 and $19,624 in 2011 | 23,530 | 20,340 | ||||||
Securities: | ||||||||
Available for sale, at fair value; amortized cost $452,733 in 2012 and $524,036 in 2011 | 469,167 | 541,253 | ||||||
Held to maturity, at cost; fair value $48,220 in 2012 and $52,499 in 2011 | 47,026 | 52,139 | ||||||
Total securities | 516,193 | 593,392 | ||||||
Federal Home Loan Bank stock, at cost | 40,418 | 42,008 | ||||||
Loans: | ||||||||
Commercial | 1,191,995 | 1,124,628 | ||||||
Residential real estate | 702,019 | 700,414 | ||||||
Consumer | 319,828 | 322,117 | ||||||
Total loans | 2,213,842 | 2,147,159 | ||||||
Less allowance for loan losses | 30,448 | 29,802 | ||||||
Net loans | 2,183,394 | 2,117,357 | ||||||
Premises and equipment, net | 27,223 | 26,028 | ||||||
Investment in bank-owned life insurance | 54,746 | 53,783 | ||||||
Goodwill | 58,114 | 58,114 | ||||||
Identifiable intangible assets, net | 6,528 | 6,901 | ||||||
Other assets | 60,289 | 59,155 | ||||||
Total assets | $3,041,050 | $3,064,098 | ||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Demand deposits | $321,488 | $339,809 | ||||||
NOW accounts | 263,124 | 257,031 | ||||||
Money market accounts | 388,686 | 406,777 | ||||||
Savings accounts | 264,772 | 243,904 | ||||||
Time deposits | 892,383 | 878,794 | ||||||
Total deposits | 2,130,453 | 2,126,315 | ||||||
Federal Home Loan Bank advances | 523,989 | 540,450 | ||||||
Junior subordinated debentures | 32,991 | 32,991 | ||||||
Other borrowings | 481 | 19,758 | ||||||
Other liabilities | 60,402 | 63,233 | ||||||
Total liabilities | 2,748,316 | 2,782,747 | ||||||
Commitments and contingencies | ||||||||
Shareholders’ Equity: | ||||||||
Common stock of $.0625 par value; authorized 30,000,000 shares; issued and outstanding 16,359,394 shares in 2012 and 16,292,471 shares in 2011 | 1,022 | 1,018 | ||||||
Paid-in capital | 90,022 | 88,030 | ||||||
Retained earnings | 203,726 | 194,198 | ||||||
Accumulated other comprehensive loss | (2,036 | ) | (1,895 | ) | ||||
Total shareholders’ equity | 292,734 | 281,351 | ||||||
Total liabilities and shareholders’ equity | $3,041,050 | $3,064,098 |
WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES | (Dollars and shares in thousands, |
CONSOLIDATED STATEMENTS OF INCOME (unaudited) | except per share amounts) |
Three Months | Six Months | |||||||||||||||
Periods ended June 30, | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Interest income: | ||||||||||||||||
Interest and fees on loans | $25,344 | $24,707 | $50,707 | $48,966 | ||||||||||||
Interest on securities: | Taxable | 4,069 | 4,869 | 8,446 | 9,642 | |||||||||||
Nontaxable | 682 | 758 | 1,375 | 1,527 | ||||||||||||
Dividends on corporate stock and Federal Home Loan Bank stock | 78 | 66 | 155 | 133 | ||||||||||||
Other interest income | 17 | 13 | 37 | 37 | ||||||||||||
Total interest income | 30,190 | 30,413 | 60,720 | 60,305 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 3,385 | 4,030 | 6,819 | 8,232 | ||||||||||||
Federal Home Loan Bank advances | 3,998 | 4,685 | 8,083 | 9,417 | ||||||||||||
Junior subordinated debentures | 391 | 392 | 783 | 782 | ||||||||||||
Other interest expense | 5 | 242 | 239 | 483 | ||||||||||||
Total interest expense | 7,779 | 9,349 | 15,924 | 18,914 | ||||||||||||
Net interest income | 22,411 | 21,064 | 44,796 | 41,391 | ||||||||||||
Provision for loan losses | 600 | 1,200 | 1,500 | 2,700 | ||||||||||||
Net interest income after provision for loan losses | 21,811 | 19,864 | 43,296 | 38,691 | ||||||||||||
Noninterest income: | ||||||||||||||||
Wealth management services: | ||||||||||||||||
Trust and investment advisory fees | 5,819 | 5,822 | 11,597 | 11,498 | ||||||||||||
Mutual fund fees | 1,002 | 1,135 | 2,027 | 2,258 | ||||||||||||
Financial planning, commissions and other service fees | 652 | 553 | 1,034 | 834 | ||||||||||||
Wealth management services | 7,473 | 7,510 | 14,658 | 14,590 | ||||||||||||
Service charges on deposit accounts | 764 | 909 | 1,523 | 1,841 | ||||||||||||
Merchant processing fees | 2,732 | 2,682 | 4,720 | 4,626 | ||||||||||||
Card interchange fees | 626 | 581 | 1,169 | 1,068 | ||||||||||||
Income from bank-owned life insurance | 477 | 482 | 963 | 958 | ||||||||||||
Net gains on loan sales and commissions on loans originated for others | 3,015 | 537 | 6,112 | 1,062 | ||||||||||||
Net realized gains on securities | 299 | 226 | 299 | 197 | ||||||||||||
Net (losses) gains on interest rate swap contracts | (4 | ) | (35 | ) | 24 | 41 | ||||||||||
Equity in earnings (losses) of unconsolidated subsidiaries | 124 | (145 | ) | 87 | (289 | ) | ||||||||||
Other income | 668 | 538 | 1,060 | 921 | ||||||||||||
Noninterest income, excluding other-than-temporary impairment losses | 16,174 | 13,285 | 30,615 | 25,015 | ||||||||||||
Total other-than-temporary impairment losses on securities | — | — | (85 | ) | (54 | ) | ||||||||||
Portion of loss recognized in other comprehensive income (before tax) | — | — | (124 | ) | 21 | |||||||||||
Net impairment losses recognized in earnings | — | — | (209 | ) | (33 | ) | ||||||||||
Total noninterest income | 16,174 | 13,285 | 30,406 | 24,982 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 14,451 | 12,398 | 28,911 | 24,226 | ||||||||||||
Net occupancy | 1,527 | 1,236 | 3,053 | 2,557 | ||||||||||||
Equipment | 1,143 | 1,070 | 2,250 | 2,119 | ||||||||||||
Merchant processing costs | 2,320 | 2,345 | 3,983 | 4,014 | ||||||||||||
Outsourced services | 895 | 875 | 1,815 | 1,747 | ||||||||||||
FDIC deposit insurance costs | 426 | 464 | 884 | 1,187 | ||||||||||||
Legal, audit and professional fees | 519 | 467 | 1,001 | 959 | ||||||||||||
Advertising and promotion | 478 | 427 | 850 | 780 | ||||||||||||
Amortization of intangibles | 186 | 237 | 373 | 475 | ||||||||||||
Foreclosed property costs | 170 | 338 | 468 | 504 | ||||||||||||
Debt prepayment penalties | 961 | 221 | 961 | 221 | ||||||||||||
Other expenses | 2,152 | 2,186 | 4,078 | 4,215 | ||||||||||||
Total noninterest expense | 25,228 | 22,264 | 48,627 | 43,004 | ||||||||||||
Income before income taxes | 12,757 | 10,885 | 25,075 | 20,669 | ||||||||||||
Income tax expense | 4,044 | 3,320 | 7,924 | 6,304 | ||||||||||||
Net income | $8,713 | $7,565 | $17,151 | $14,365 | ||||||||||||
Weighted average common shares outstanding - basic | 16,358 | 16,252 | 16,344 | 16,225 | ||||||||||||
Weighted average common shares outstanding - diluted | 16,392 | 16,284 | 16,381 | 16,257 | ||||||||||||
Per share information: | Basic earnings per common share | $0.53 | $0.46 | $1.04 | $0.88 | |||||||||||
Diluted earnings per common share | $0.53 | $0.46 | $1.04 | $0.88 | ||||||||||||
Cash dividends declared per share | $0.23 | $0.22 | $0.46 | $0.44 |
WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES | (Dollars in thousands) |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) |
Three Months | Six Months | |||||||||||||||
Periods ended June 30, | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Net income | $8,713 | $7,565 | $17,151 | $14,365 | ||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||
Securities available for sale: | ||||||||||||||||
Unrealized (losses) gains on securities arising during the period | (601 | ) | 3,537 | (458 | ) | 3,626 | ||||||||||
Less: reclassification adjustment for net gains on securities realized in net income | 192 | 145 | 138 | 92 | ||||||||||||
Net unrealized (losses) gains on securities available for sale | (793 | ) | 3,392 | (596 | ) | 3,534 | ||||||||||
Reclassification adjustment for change in non-credit portion of OTTI realized losses transferred to net income | — | — | 80 | (13 | ) | |||||||||||
Cash flow hedges: | ||||||||||||||||
Unrealized losses on cash flow hedges arising during the period | (128 | ) | (468 | ) | (204 | ) | (419 | ) | ||||||||
Less: reclassification adjustment for amount of gains on cash flow hedges realized in net income | 112 | 122 | 223 | 245 | ||||||||||||
Net unrealized (losses) gains on cash flow hedges | (16 | ) | (346 | ) | 19 | (174 | ) | |||||||||
Defined benefit plan obligation adjustment | 171 | 60 | 356 | 120 | ||||||||||||
Total other comprehensive (loss) income, net of tax | (638 | ) | 3,106 | (141 | ) | 3,467 | ||||||||||
Total comprehensive income | $8,075 | $10,671 | $17,010 | $17,832 |
WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES | (Dollars and shares in thousands) |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) |
Common Shares Outstanding | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total | |||||||||||||||||
Balance at January 1, 2011 | 16,172 | $1,011 | $84,889 | $178,939 | $4,025 | $268,864 | ||||||||||||||||
Net income | 14,365 | 14,365 | ||||||||||||||||||||
Total other comprehensive income, net of tax | 3,467 | 3,467 | ||||||||||||||||||||
Cash dividends declared | (7,226 | ) | (7,226 | ) | ||||||||||||||||||
Share-based compensation | 680 | 680 | ||||||||||||||||||||
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit | 73 | 4 | 787 | 791 | ||||||||||||||||||
Shares issued – dividend reinvestment plan | 21 | 2 | 482 | 484 | ||||||||||||||||||
Balance at June 30, 2011 | 16,266 | $1,017 | $86,838 | $186,078 | $7,492 | $281,425 |
Common Shares Outstanding | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||
Balance at January 1, 2012 | 16,292 | $1,018 | $88,030 | $194,198 | ($1,895 | ) | $281,351 | |||||||||||||||
Net income | 17,151 | 17,151 | ||||||||||||||||||||
Total other comprehensive loss, net of tax | (141 | ) | (141 | ) | ||||||||||||||||||
Cash dividends declared | (7,623 | ) | (7,623 | ) | ||||||||||||||||||
Share-based compensation | 876 | 876 | ||||||||||||||||||||
Deferred compensation plan | 10 | 1 | 145 | 146 | ||||||||||||||||||
Exercise of stock options, issuance of other compensation-related equity instruments and related tax benefit | 57 | 3 | 971 | 974 | ||||||||||||||||||
Balance at June 30, 2012 | 16,359 | $1,022 | $90,022 | $203,726 | ($2,036 | ) | $292,734 |
WASHINGTON TRUST BANCORP, INC. AND SUBSIDIARIES | (Dollars in thousands) |
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
Six months ended June 30, | 2012 | 2011 | ||||||
Cash flows from operating activities: | ||||||||
Net income | $17,151 | $14,365 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Provision for loan losses | 1,500 | 2,700 | ||||||
Depreciation of premises and equipment | 1,584 | 1,540 | ||||||
Foreclosed and repossessed property valuation adjustments | 171 | 392 | ||||||
Net gain on sale of bank property | (348 | ) | (203 | ) | ||||
Net amortization of premium and discount | 1,113 | 664 | ||||||
Net amortization of intangibles | 373 | 475 | ||||||
Share-based compensation | 876 | 680 | ||||||
Income from bank-owned life insurance | (963 | ) | (958 | ) | ||||
Net gains on loan sales and commissions on loans originated for others | (6,112 | ) | (1,062 | ) | ||||
Net realized gains on securities | (299 | ) | (197 | ) | ||||
Net impairment losses recognized in earnings | 209 | 33 | ||||||
Net gains on interest rate swap contracts | (24 | ) | (41 | ) | ||||
Equity in (earnings) losses of unconsolidated subsidiaries | (87 | ) | 289 | |||||
Proceeds from sales of loans | 213,852 | 52,714 | ||||||
Loans originated for sale | (198,824 | ) | (46,587 | ) | ||||
(Increase) decrease in other assets | (3,108 | ) | 2,291 | |||||
Decrease in other liabilities | (2,932 | ) | (5,888 | ) | ||||
Net cash provided by operating activities | 24,132 | 21,207 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of mortgage-backed securities available for sale | — | (90,855 | ) | |||||
Proceeds from sale of: | Mortgage-backed securities available for sale | 6,247 | 42,783 | |||||
Other investment securities available for sale | 6,338 | 1,000 | ||||||
Maturities and principal payments of: | Mortgage-backed securities available for sale | 57,196 | 54,494 | |||||
Other investment securities available for sale | 681 | — | ||||||
Mortgage-backed securities held to maturity | 4,842 | — | ||||||
Remittance of Federal Home Loan Bank stock | 1,590 | — | ||||||
Net increase in loans | (76,517 | ) | (60,274 | ) | ||||
Purchases of loans, including purchased interest | (3,047 | ) | (3,116 | ) | ||||
Proceeds from the sale of property acquired through foreclosure or repossession | 1,883 | 1,675 | ||||||
Purchases of premises and equipment | (3,453 | ) | (1,239 | ) | ||||
Net proceeds from the sale of bank property | 1,571 | 1,279 | ||||||
Equity investments in real estate limited partnerships | — | (294 | ) | |||||
Net cash used in investing activities | (2,669 | ) | (54,547 | ) | ||||
Cash flows from financing activities: | ||||||||
Net increase (decrease) in deposits | 4,138 | (40,287 | ) | |||||
Net decrease in other borrowings | (19,277 | ) | (1,354 | ) | ||||
Proceeds from Federal Home Loan Bank advances | 362,930 | 248,078 | ||||||
Repayment of Federal Home Loan Bank advances | (379,391 | ) | (188,360 | ) | ||||
Proceeds from the issuance of common stock under dividend reinvestment plan | — | 484 | ||||||
Proceeds from the exercise of stock options and issuance of other compensation-related equity instruments | 1,007 | 725 | ||||||
Tax benefit from stock option exercises and issuance of other compensation-related equity instruments | 113 | 68 | ||||||
Cash dividends paid | (7,388 | ) | (7,005 | ) | ||||
Net cash (used in) provided by financing activities | (37,868 | ) | 12,349 | |||||
Net decrease in cash and cash equivalents | (16,405 | ) | (20,991 | ) | ||||
Cash and cash equivalents at beginning of period | 87,020 | 92,736 | ||||||
Cash and cash equivalents at end of period | $70,615 | $71,745 | ||||||
Noncash Investing and Financing Activities: | ||||||||
Loans charged off | $1,377 | $2,096 | ||||||
Loans transferred to property acquired through foreclosure or repossession | 1,810 | 801 | ||||||
Securities proceeds due from broker | 760 | — | ||||||
Supplemental Disclosures: | ||||||||
Interest payments | $15,602 | $18,710 | ||||||
Income tax payments | 7,744 | 5,836 |
(1) | General Information |
(2) | Recently Issued Accounting Pronouncements |
(3) | Cash and Due from Banks |
(4) | Securities |
(Dollars in thousands) | |||||||||||||||
June 30, 2012 | Amortized Cost (1) | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||
Securities Available for Sale: | |||||||||||||||
Obligations of U.S. government-sponsored enterprises | $29,443 | $2,876 | $— | $32,319 | |||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 305,757 | 18,535 | — | 324,292 | |||||||||||
States and political subdivisions | 68,939 | 4,784 | — | 73,723 | |||||||||||
Trust preferred securities: | |||||||||||||||
Individual name issuers | 30,658 | — | (7,038 | ) | 23,620 | ||||||||||
Collateralized debt obligations | 4,047 | — | (3,280 | ) | 767 | ||||||||||
Corporate bonds | 13,889 | 659 | (102 | ) | 14,446 | ||||||||||
Total securities available for sale | $452,733 | $26,854 | ($10,420 | ) | $469,167 | ||||||||||
Held to Maturity: | |||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | $47,026 | $1,194 | $— | $48,220 | |||||||||||
Total securities held to maturity | $47,026 | $1,194 | $— | $48,220 | |||||||||||
Total securities | $499,759 | $28,048 | ($10,420 | ) | $517,387 |
(Dollars in thousands) | |||||||||||||||
December 31, 2011 | Amortized Cost (1) | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||
Securities Available for Sale: | |||||||||||||||
Obligations of U.S. government-sponsored enterprises | $29,429 | $3,404 | $— | $32,833 | |||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 369,946 | 19,712 | — | 389,658 | |||||||||||
States and political subdivisions | 74,040 | 5,453 | — | 79,493 | |||||||||||
Trust preferred securities: | |||||||||||||||
Individual name issuers | 30,639 | — | (8,243 | ) | 22,396 | ||||||||||
Collateralized debt obligations | 4,256 | — | (3,369 | ) | 887 | ||||||||||
Corporate bonds | 13,872 | 813 | (403 | ) | 14,282 | ||||||||||
Perpetual preferred stocks (2) | 1,854 | — | (150 | ) | 1,704 | ||||||||||
Total securities available for sale | $524,036 | $29,382 | ($12,165 | ) | $541,253 | ||||||||||
Held to Maturity: | |||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | $52,139 | $360 | $— | $52,499 | |||||||||||
Total securities held to maturity | $52,139 | $360 | $— | $52,499 | |||||||||||
Total securities | $576,175 | $29,742 | ($12,165 | ) | $593,752 |
(Dollars in thousands) | Three Months | Six Months | |||||||||||||
Periods ended June 30, | 2012 | 2011 | 2012 | 2011 | |||||||||||
Balance at beginning of period | $3,313 | $2,946 | $3,104 | $2,913 | |||||||||||
Credit-related impairment loss on debt securities for which an other-than-temporary impairment was not previously recognized | — | — | — | — | |||||||||||
Additional increases to the amount of credit-related impairment loss on debt securities for which an other-than-temporary impairment was previously recognized | — | — | 209 | 33 | |||||||||||
Balance at end of period | $3,313 | $2,946 | $3,313 | $2,946 |
(Dollars in thousands) | Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||
June 30, 2012 | # | Fair Value | Unrealized Losses | # | Fair Value | Unrealized Losses | # | Fair Value | Unrealized Losses | |||||||||||||||||||||||
Trust preferred securities: | ||||||||||||||||||||||||||||||||
Individual name issuers | — | $— | $— | 11 | $23,620 | ($7,038 | ) | 11 | $23,620 | ($7,038 | ) | |||||||||||||||||||||
Collateralized debt obligations | — | — | — | 2 | 767 | (3,280 | ) | 2 | 767 | (3,280 | ) | |||||||||||||||||||||
Corporate bonds | 3 | 5,505 | (102 | ) | — | — | — | 3 | 5,505 | (102 | ) | |||||||||||||||||||||
Subtotal, debt securities | 3 | 5,505 | (102 | ) | 13 | 24,387 | (10,318 | ) | 16 | 29,892 | (10,420 | ) | ||||||||||||||||||||
Total temporarily impaired securities | 3 | $5,505 | ($102 | ) | 13 | $24,387 | ($10,318 | ) | 16 | $29,892 | ($10,420 | ) |
(Dollars in thousands) | Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||||||||
December 31, 2011 | # | Fair Value | Unrealized Losses | # | Fair Value | Unrealized Losses | # | Fair Value | Unrealized Losses | |||||||||||||||||||||||
Trust preferred securities: | ||||||||||||||||||||||||||||||||
Individual name issuers | — | $— | $— | 11 | $22,396 | ($8,243 | ) | 11 | $22,396 | ($8,243 | ) | |||||||||||||||||||||
Collateralized debt obligations | — | — | — | 2 | 887 | (3,369 | ) | 2 | 887 | (3,369 | ) | |||||||||||||||||||||
Corporate bonds | 3 | 5,203 | (403 | ) | — | — | — | 3 | 5,203 | (403 | ) | |||||||||||||||||||||
Subtotal, debt securities | 3 | 5,203 | (403 | ) | 13 | 23,283 | (11,612 | ) | 16 | 28,486 | (12,015 | ) | ||||||||||||||||||||
Perpetual preferred stocks | 2 | 1,704 | (150 | ) | — | — | — | 2 | 1,704 | (150 | ) | |||||||||||||||||||||
Total temporarily impaired securities | 5 | $6,907 | ($553 | ) | 13 | $23,283 | ($11,612 | ) | 18 | $30,190 | ($12,165 | ) |
(Dollars in thousands) | Within 1 Year | 1-5 Years | 5-10 Years | After 10 Years | Totals | ||||||||||||||
Securities Available for Sale: | |||||||||||||||||||
Obligations of U.S. government-sponsored enterprises: | |||||||||||||||||||
Amortized cost | $— | $29,443 | $— | $— | $29,443 | ||||||||||||||
Weighted average yield | — | % | 5.41 | % | — | % | — | % | 5.41 | % | |||||||||
Mortgage-backed securities issued by U.S. government-sponsored enterprises: | |||||||||||||||||||
Amortized cost | 90,411 | 161,311 | 44,625 | 9,410 | 305,757 | ||||||||||||||
Weighted average yield | 4.29 | % | 3.91 | % | 2.61 | % | 2.34 | % | 3.78 | % | |||||||||
State and political subdivisions: | |||||||||||||||||||
Amortized cost | 4,083 | 64,053 | 803 | — | 68,939 | ||||||||||||||
Weighted average yield | 3.62 | % | 3.90 | % | 3.81 | % | — | % | 3.89 | % | |||||||||
Trust preferred securities: | |||||||||||||||||||
Amortized cost (1) | — | — | — | 34,705 | 34,705 | ||||||||||||||
Weighted average yield | — | % | — | % | — | % | 1.83 | % | 1.83 | % | |||||||||
Corporate bonds: | |||||||||||||||||||
Amortized cost | 3,196 | 10,693 | — | — | 13,889 | ||||||||||||||
Weighted average yield | 6.32 | % | 4.73 | % | — | % | — | % | 5.09 | % | |||||||||
Total debt securities available for sale: | |||||||||||||||||||
Amortized cost | $97,690 | $265,500 | $45,428 | $44,115 | $452,733 | ||||||||||||||
Weighted average yield | 4.33 | % | 4.11 | % | 2.63 | % | 1.94 | % | 3.80 | % | |||||||||
Fair value | $101,209 | $275,084 | $48,189 | $44,685 | $469,167 | ||||||||||||||
Securities Held to Maturity: | |||||||||||||||||||
Mortgage-backed securities issued by U.S. government-sponsored enterprises: | |||||||||||||||||||
Amortized cost | $9,714 | $23,013 | $10,631 | $3,668 | $47,026 | ||||||||||||||
Weighted average yield | 2.67 | % | 2.56 | % | 2.44 | % | 1.49 | % | 2.47 | % | |||||||||
Fair value | $9,961 | $23,597 | $10,901 | $3,761 | $48,220 |
(1) | Net of other-than-temporary impairment losses. |
(5) | Loans |
(Dollars in thousands) | June 30, 2012 | December 31, 2011 | |||||||||||
Amount | % | Amount | % | ||||||||||
Commercial: | |||||||||||||
Mortgages (1) | $664,410 | 30 | % | $624,813 | 29 | % | |||||||
Construction and development (2) | 17,365 | 1 | 10,955 | 1 | |||||||||
Other (3) | 510,220 | 23 | 488,860 | 22 | |||||||||
Total commercial | 1,191,995 | 54 | 1,124,628 | 52 | |||||||||
Residential real estate: | |||||||||||||
Mortgages (4) | 680,772 | 31 | 678,582 | 32 | |||||||||
Homeowner construction | 21,247 | 1 | 21,832 | 1 | |||||||||
Total residential real estate | 702,019 | 32 | 700,414 | 33 | |||||||||
Consumer: | |||||||||||||
Home equity lines (5) | 224,550 | 10 | 223,430 | 10 | |||||||||
Home equity loans (5) | 40,690 | 2 | 43,121 | 2 | |||||||||
Other (6) | 54,588 | 2 | 55,566 | 3 | |||||||||
Total consumer | 319,828 | 14 | 322,117 | 15 | |||||||||
Total loans (7) | $2,213,842 | 100 | % | $2,147,159 | 100 | % |
(1) | Amortizing mortgages and lines of credit, primarily secured by income producing property. As of June 30, 2012 and December 31, 2011, $99.2 million and $107.1 million, respectively, of these loans were pledged as collateral for FHLBB borrowings (see Note 8). |
(2) | Loans for construction of residential and commercial properties and for land development. |
(3) | Loans to businesses and individuals, a substantial portion of which are fully or partially collateralized by real estate. As of June 30, 2012, $24.3 million and $36.3 million, respectively, of these loans were pledged as collateral for FHLBB borrowings and were collateralized for the discount window at the Federal Reserve Bank. Comparable amounts for December 31, 2011 were $27.2 million and $42.1 million, respectively (see Note 8). |
(4) | As of June 30, 2012 and December 31, 2011, $598.3 million and $611.8 million, respectively, of these loans were pledged as collateral for FHLBB borrowings (see Note 8). |
(5) | As of June 30, 2012 and December 31, 2011, $190.1 million and $165.4 million, respectively, of these loans were pledged as collateral for FHLBB borrowings (see Note 8). |
(6) | Fixed-rate consumer installment loans. |
(7) | Includes net unamortized loan origination costs of $6 thousand and $31 thousand, respectively, and net unamortized premiums on purchased loans of $58 thousand and $67 thousand, respectively, at June 30, 2012 and December 31, 2011. |
(Dollars in thousands) | Jun 30, 2012 | Dec 31, 2011 | |||||
Commercial: | |||||||
Mortgages | $2,597 | $5,709 | |||||
Construction and development | — | — | |||||
Other | 3,405 | 3,708 | |||||
Residential real estate: | |||||||
Mortgages | 8,659 | 10,614 | |||||
Homeowner construction | — | — | |||||
Consumer: | |||||||
Home equity lines | 695 | 718 | |||||
Home equity loans | 371 | 335 | |||||
Other | 15 | 153 | |||||
Total nonaccrual loans | $15,742 | $21,237 | |||||
Accruing loans 90 days or more past due | $— | $— |
(Dollars in thousands) | Days Past Due | ||||||||||||||||||||||
June 30, 2012 | 30-59 | 60-89 | Over 90 | Total Past Due | Current | Total Loans | |||||||||||||||||
Commercial: | |||||||||||||||||||||||
Mortgages | $411 | $233 | $2,339 | $2,983 | $661,427 | $664,410 | |||||||||||||||||
Construction and development | — | — | — | — | 17,365 | 17,365 | |||||||||||||||||
Other | 849 | 434 | 1,714 | 2,997 | 507,223 | 510,220 | |||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Mortgages | 4,969 | 1,600 | 4,039 | 10,608 | 670,164 | 680,772 | |||||||||||||||||
Homeowner construction | — | — | — | — | 21,247 | 21,247 | |||||||||||||||||
Consumer: | |||||||||||||||||||||||
Home equity lines | 1,996 | 548 | 139 | 2,683 | 221,867 | 224,550 | |||||||||||||||||
Home equity loans | 482 | 114 | 223 | 819 | 39,871 | 40,690 | |||||||||||||||||
Other | 182 | 15 | — | 197 | 54,391 | 54,588 | |||||||||||||||||
Total loans | $8,889 | $2,944 | $8,454 | $20,287 | $2,193,555 | $2,213,842 |
(Dollars in thousands) | Days Past Due | ||||||||||||||||||||||
December 31, 2011 | 30-59 | 60-89 | Over 90 | Total Past Due | Current | Total Loans | |||||||||||||||||
Commercial: | |||||||||||||||||||||||
Mortgages | $1,621 | $315 | $4,995 | $6,931 | $617,882 | $624,813 | |||||||||||||||||
Construction and development | — | — | — | — | 10,955 | 10,955 | |||||||||||||||||
Other | 3,760 | 982 | 633 | 5,375 | 483,485 | 488,860 | |||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Mortgages | 3,969 | 1,505 | 6,283 | 11,757 | 666,825 | 678,582 | |||||||||||||||||
Homeowner construction | — | — | — | — | 21,832 | 21,832 | |||||||||||||||||
Consumer: | |||||||||||||||||||||||
Home equity lines | 645 | 210 | 525 | 1,380 | 222,050 | 223,430 | |||||||||||||||||
Home equity loans | 362 | 46 | 202 | 610 | 42,511 | 43,121 | |||||||||||||||||
Other | 66 | 7 | 147 | 220 | 55,346 | 55,566 | |||||||||||||||||
Total loans | $10,423 | $3,065 | $12,785 | $26,273 | $2,120,886 | $2,147,159 |
(Dollars in thousands) | Recorded Investment (1) | Unpaid Principal | Related Allowance | ||||||||||||||||||||
Jun 30, 2012 | Dec 31, 2011 | Jun 30, 2012 | Dec 31, 2011 | Jun 30, 2012 | Dec 31, 2011 | ||||||||||||||||||
No Related Allowance Recorded: | |||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||
Mortgages | $1,158 | $7,093 | $1,155 | $7,076 | $— | $— | |||||||||||||||||
Construction and development | — | — | — | — | — | — | |||||||||||||||||
Other | 2,681 | 1,622 | 2,677 | 1,620 | — | — | |||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Mortgages | 1,224 | 2,383 | 1,605 | 2,471 | — | — | |||||||||||||||||
Homeowner construction | — | — | — | — | — | — | |||||||||||||||||
Consumer: | |||||||||||||||||||||||
Home equity lines | — | — | — | — | — | — | |||||||||||||||||
Home equity loans | — | — | — | — | — | — | |||||||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||
Subtotal | $5,063 | $11,098 | $5,437 | $11,167 | $— | $— | |||||||||||||||||
With Related Allowance Recorded: | |||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||
Mortgages | $2,696 | $5,023 | $3,901 | $6,760 | $204 | $329 | |||||||||||||||||
Construction and development | — | — | — | — | — | — | |||||||||||||||||
Other | 7,651 | 8,739 | 8,250 | 9,740 | 523 | 839 | |||||||||||||||||
Residential real estate: | |||||||||||||||||||||||
Mortgages | 3,003 | 3,606 | 3,246 | 4,138 | 582 | 495 | |||||||||||||||||
Homeowner construction | — | — | — | — | — | — | |||||||||||||||||
Consumer: | |||||||||||||||||||||||
Home equity lines | 105 | 278 | 172 | 373 | — | 82 | |||||||||||||||||
Home equity loans | 123 | 130 | 147 | 153 | 1 | 1 | |||||||||||||||||
Other | 139 | 205 | 140 | 227 | 1 | 69 | |||||||||||||||||
Subtotal | $13,717 | $17,981 | $15,856 | $21,391 | $1,311 | $1,815 | |||||||||||||||||
Total impaired loans | $18,780 | $29,079 | $21,293 | $32,558 | $1,311 | $1,815 | |||||||||||||||||
Total: | |||||||||||||||||||||||
Commercial | $14,186 | $22,477 | $15,983 | $25,196 | $727 | $1,168 | |||||||||||||||||
Residential real estate | 4,227 | 5,989 | 4,851 | 6,609 | 582 | 495 | |||||||||||||||||
Consumer | 367 | 613 | 459 | 753 | 2 | 152 | |||||||||||||||||
Total impaired loans | $18,780 | $29,079 | $21,293 | $32,558 | $1,311 | $1,815 |
(1) | The recorded investment in impaired loans consists of unpaid principal balance, net of charge-offs, interest payments received applied to principal and unamortized deferred loan origination fees and costs. For impaired accruing loans (including those troubled debt restructurings for which management has concluded that the collectibility of the loan is not in doubt), the recorded investment also includes accrued interest. As of June 30, 2012 and December 31, 2011, recorded investment in impaired loans included accrued interest of $17 thousand and $46 thousand, respectively. |
(Dollars in thousands) | Average Recorded Investment | Interest Income Recognized | |||||||||||||
Three months ended June 30, | 2012 | 2011 | 2012 | 2011 | |||||||||||
Commercial: | |||||||||||||||
Mortgages | $5,773 | $15,231 | $35 | $149 | |||||||||||
Construction and development | — | — | — | — | |||||||||||
Other | 11,257 | 8,564 | 84 | 117 | |||||||||||
Residential real estate: | |||||||||||||||
Mortgages | 4,743 | 6,114 | 18 | 46 | |||||||||||
Homeowner construction | — | — | — | — | |||||||||||
Consumer: | |||||||||||||||
Home equity lines | 138 | 96 | — | 2 | |||||||||||
Home equity loans | 125 | 396 | 3 | 5 | |||||||||||
Other | 143 | 260 | 3 | 4 | |||||||||||
Totals | $22,179 | $30,661 | $143 | $323 |
(Dollars in thousands) | Average Recorded Investment | Interest Income Recognized | |||||||||||||
Six months ended June 30, | 2012 | 2011 | 2012 | 2011 | |||||||||||
Commercial: | |||||||||||||||
Mortgages | $8,382 | $16,682 | $105 | $322 | |||||||||||
Construction and development | — | — | — | — | |||||||||||
Other | 11,049 | 10,014 | 158 | 211 | |||||||||||
Residential real estate: | |||||||||||||||
Mortgages | 5,102 | 5,574 | 45 | 90 | |||||||||||
Homeowner construction | — | — | — | — | |||||||||||
Consumer: | |||||||||||||||
Home equity lines | 191 | 101 | 1 | 3 | |||||||||||
Home equity loans | 148 | 427 | 4 | 11 | |||||||||||
Other | 154 | 231 | 5 | 8 | |||||||||||
Totals | $25,026 | $33,029 | $318 | $645 |
(Dollars in thousands) | Outstanding Recorded Investment (1) | ||||||||||||||||||||
# of Loans | Pre-Modifications | Post-Modifications | |||||||||||||||||||
Three months ended June 30, | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||
Commercial: | |||||||||||||||||||||
Mortgages | 1 | — | $197 | $— | $197 | $— | |||||||||||||||
Other | 2 | 2 | 375 | 561 | 375 | 561 | |||||||||||||||
Residential real estate: | |||||||||||||||||||||
Mortgages | 2 | 2 | 651 | 427 | 651 | 427 | |||||||||||||||
Totals | 5 | 4 | $1,223 | $988 | $1,223 | $988 |
(1) | The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs, at the time of the restructuring. For accruing troubled debt restructurings the recorded investment also includes accrued interest. |
(Dollars in thousands) | Outstanding Recorded Investment (1) | ||||||||||||||||||||
# of Loans | Pre-Modifications | Post-Modifications | |||||||||||||||||||
Six months ended June 30, | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||
Commercial: | |||||||||||||||||||||
Mortgages | 3 | 2 | $861 | $215 | $861 | $215 | |||||||||||||||
Other | 7 | 7 | 1,625 | 1,292 | 1,625 | 1,292 | |||||||||||||||
Residential real estate: | |||||||||||||||||||||
Mortgages | 2 | 5 | 651 | 1,310 | 651 | 1,310 | |||||||||||||||
Consumer: | |||||||||||||||||||||
Other | 2 | 1 | 5 | 117 | 5 | 117 | |||||||||||||||
Totals | 14 | 15 | $3,142 | $2,934 | $3,142 | $2,934 |
(1) | The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs, at the time of the restructuring. For accruing troubled debt restructurings the recorded investment also includes accrued interest. |
(Dollars in thousands) | |||||||||||||||
Three Months | Six Months | ||||||||||||||
Periods ended June 30, | 2012 | 2011 | 2012 | 2011 | |||||||||||
Payment deferral | $240 | $988 | $240 | $1,926 | |||||||||||
Maturity / amortization concession | 24 | — | 917 | 667 | |||||||||||
Interest only payments | — | — | 361 | 15 | |||||||||||
Below market interest rate concession | 761 | — | 1,426 | — | |||||||||||
Combination (1) | 198 | — | 198 | 326 | |||||||||||
Total | $1,223 | $988 | $3,142 | $2,934 |
(1) | Loans included in this classification had a combination of any two of the concessions included in this table. |
(Dollars in thousands) | # of Loans | Recorded Investment (1) | |||||||||||
Three months ended June 30, | 2012 | 2011 | 2012 | 2011 | |||||||||
Commercial: | |||||||||||||
Mortgages | 1 | 2 | $197 | $196 | |||||||||
Other | 2 | 7 | 52 | 341 | |||||||||
Residential real estate: | |||||||||||||
Mortgages | 1 | 3 | 495 | 1,206 | |||||||||
Consumer: | |||||||||||||
Other | 1 | — | 12 | — | |||||||||
Totals | 5 | 12 | $756 | $1,743 |
(1) | The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs. For accruing troubled debt restructurings the recorded investment also includes accrued interest. |
(Dollars in thousands) | # of Loans | Recorded Investment (1) | |||||||||||
Six months ended June 30, | 2012 | 2011 | 2012 | 2011 | |||||||||
Commercial: | |||||||||||||
Mortgages | 1 | 2 | $197 | $196 | |||||||||
Other | 2 | 8 | 52 | 395 | |||||||||
Residential real estate: | |||||||||||||
Mortgages | 1 | 5 | 495 | 1,596 | |||||||||
Consumer: | |||||||||||||
Other | 1 | — | 12 | — | |||||||||
Totals | 5 | 15 | $756 | $2,187 |
(1) | The recorded investment in troubled debt restructurings consists of unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs. For accruing troubled debt restructurings the recorded investment also includes accrued interest. |
(Dollars in thousands) | Pass | Special Mention | Classified | ||||||||||||||||||||
Jun 30, 2012 | Dec 31, 2011 | Jun 30, 2012 | Dec 31, 2011 | Jun 30, 2012 | Dec 31, 2011 | ||||||||||||||||||
Mortgages | $626,603 | $583,162 | $25,182 | $29,759 | $12,625 | $11,892 | |||||||||||||||||
Construction and development | 17,365 | 10,955 | — | — | — | — | |||||||||||||||||
Other | 480,782 | 455,577 | 22,589 | 22,731 | 6,849 | 10,552 | |||||||||||||||||
Total commercial loans | $1,124,750 | $1,049,694 | $47,771 | $52,490 | $19,474 | $22,444 |
(Dollars in thousands) | Under 90 Days Past Due | Over 90 Days Past Due | |||||||||||||
Jun 30, 2012 | Dec 31, 2011 | Jun 30, 2012 | Dec 31, 2011 | ||||||||||||
Residential Real Estate: | |||||||||||||||
Accruing mortgages | $672,113 | $667,968 | $— | $— | |||||||||||
Nonaccrual mortgages | 4,620 | 4,331 | 4,039 | 6,283 | |||||||||||
Homeowner construction | 21,247 | 21,832 | — | — | |||||||||||
Total residential real estate loans | $697,980 | $694,131 | $4,039 | $6,283 | |||||||||||
Consumer: | |||||||||||||||
Home equity lines | $224,411 | $222,905 | $139 | $525 | |||||||||||
Home equity loans | 40,467 | 42,919 | 223 | 202 | |||||||||||
Other | 54,588 | 55,419 | — | 147 | |||||||||||
Total consumer loans | $319,466 | $321,243 | $362 | $874 |
(6) | Allowance for Loan Losses |
(Dollars in thousands) | Commercial | ||||||||||||||||||||||||||||||
Mortgages | Construction | Other | Total Commercial | Residential | Consumer | Un-allocated | Total | ||||||||||||||||||||||||
Beginning Balance | $9,352 | $110 | $5,906 | $15,368 | $4,325 | $2,133 | $8,219 | $30,045 | |||||||||||||||||||||||
Charge-offs | — | — | (580 | ) | (580 | ) | (16 | ) | (100 | ) | — | (696 | ) | ||||||||||||||||||
Recoveries | 388 | — | 31 | 419 | 63 | 17 | — | 499 | |||||||||||||||||||||||
Provision | (795 | ) | 54 | 882 | 141 | 341 | 331 | (213 | ) | 600 | |||||||||||||||||||||
Ending Balance | $8,945 | $164 | $6,239 | $15,348 | $4,713 | $2,381 | $8,006 | $30,448 |
(Dollars in thousands) | Commercial | ||||||||||||||||||||||||||||||
Mortgages | Construction | Other | Total Commercial | Residential | Consumer | Un-allocated | Total | ||||||||||||||||||||||||
Beginning Balance | $7,600 | $532 | $6,256 | $14,388 | $4,805 | $2,046 | $7,870 | $29,109 | |||||||||||||||||||||||
Charge-offs | (124 | ) | — | (617 | ) | (741 | ) | (146 | ) | (157 | ) | — | (1,044 | ) | |||||||||||||||||
Recoveries | 2 | — | 76 | 78 | — | 10 | — | 88 | |||||||||||||||||||||||
Provision | (104 | ) | (315 | ) | 1,278 | 859 | (188 | ) | 253 | 276 | 1,200 | ||||||||||||||||||||
Ending Balance | $7,374 | $217 | $6,993 | $14,584 | $4,471 | $2,152 | $8,146 | $29,353 |
(Dollars in thousands) | Commercial | ||||||||||||||||||||||||||||||
Mortgages | Construction | Other | Total Commercial | Residential | Consumer | Un-allocated | Total | ||||||||||||||||||||||||
Beginning Balance | $8,195 | $95 | $6,200 | $14,490 | $4,694 | $2,452 | $8,166 | $29,802 | |||||||||||||||||||||||
Charge-offs | (9 | ) | — | (910 | ) | (919 | ) | (250 | ) | (208 | ) | — | (1,377 | ) | |||||||||||||||||
Recoveries | 390 | — | 37 | 427 | 73 | 23 | — | 523 | |||||||||||||||||||||||
Provision | 369 | 69 | 912 | 1,350 | 196 | 114 | (160 | ) | 1,500 | ||||||||||||||||||||||
Ending Balance | $8,945 | $164 | $6,239 | $15,348 | $4,713 | $2,381 | $8,006 | $30,448 |
(Dollars in thousands) | Commercial | ||||||||||||||||||||||||||||||
Mortgages | Construction | Other | Total Commercial | Residential | Consumer | Un-allocated | Total | ||||||||||||||||||||||||
Beginning Balance | $7,330 | $723 | $6,495 | $14,548 | $4,129 | $1,903 | $8,003 | $28,583 | |||||||||||||||||||||||
Charge-offs | (459 | ) | — | (1,195 | ) | (1,654 | ) | (265 | ) | (177 | ) | — | (2,096 | ) | |||||||||||||||||
Recoveries | 4 | — | 146 | 150 | 1 | 15 | — | 166 | |||||||||||||||||||||||
Provision | 499 | (506 | ) | 1,547 | 1,540 | 606 | 411 | 143 | 2,700 | ||||||||||||||||||||||
Ending Balance | $7,374 | $217 | $6,993 | $14,584 | $4,471 | $2,152 | $8,146 | $29,353 |
(Dollars in thousands) | June 30, 2012 | December 31, 2011 | |||||||||||||
Loans | Related Allowance | Loans | Related Allowance | ||||||||||||
Loans Individually Evaluated for Impairment: | |||||||||||||||
Commercial: | |||||||||||||||
Mortgages | $3,849 | $204 | $12,099 | $329 | |||||||||||
Construction & development | — | — | — | — | |||||||||||
Other | 10,319 | 523 | 10,334 | 839 | |||||||||||
Residential real estate mortgages | 4,228 | 582 | 5,988 | 495 | |||||||||||
Consumer | 367 | 2 | 612 | 152 | |||||||||||
Subtotal | $18,763 | $1,311 | $29,033 | $1,815 | |||||||||||
Loans Collectively Evaluated for Impairment: | |||||||||||||||
Commercial: | |||||||||||||||
Mortgages | $660,561 | $8,741 | $612,714 | $7,866 | |||||||||||
Construction & development | 17,365 | 164 | 10,955 | 95 | |||||||||||
Other | 499,901 | 5,716 | 478,526 | 5,361 | |||||||||||
Residential real estate mortgages | 697,791 | 4,131 | 694,426 | 4,199 | |||||||||||
Consumer | 319,461 | 2,379 | 321,505 | 2,300 | |||||||||||
Subtotal | $2,195,079 | $21,131 | $2,118,126 | $19,821 | |||||||||||
Unallocated | — | 8,006 | — | 8,166 | |||||||||||
Total | $2,213,842 | $30,448 | $2,147,159 | $29,802 |
(7) | Time Certificates of Deposit |
(Dollars in thousands) | Scheduled Maturity | Weighted Average Rate | ||||
July 1, 2012 through December 31, 2012 | $355,866 | 0.58 | % | |||
2013 | 225,934 | 1.54 | % | |||
2014 | 136,114 | 1.90 | % | |||
2015 | 86,170 | 2.63 | % | |||
2016 | 69,109 | 1.82 | % | |||
2017 and after | 19,190 | 1.77 | % | |||
$892,383 |
(Dollars in thousands) | Scheduled Maturity | ||
July 1, 2012 to September 30, 2012 | $168,432 | ||
October 1, 2012 to December 31, 2012 | 83,793 | ||
January 1, 2013 to June 30, 2013 | 58,079 | ||
July 1, 2013 and beyond | 137,069 | ||
$447,373 |
(8) | Borrowings |
(Dollars in thousands) | Scheduled Maturity | Redeemed at Call Date (1) | Weighted Average Rate (2) | |||||||
July 1, 2012 through December 31, 2012 | $137,252 | $142,252 | 1.09 | % | ||||||
2013 | 39,229 | 34,229 | 3.37 | % | ||||||
2014 | 32,129 | 32,129 | 3.19 | % | ||||||
2015 | 112,682 | 112,682 | 3.49 | % | ||||||
2016 | 96,587 | 96,587 | 3.61 | % | ||||||
2017 and after | 106,110 | 106,110 | 3.80 | % | ||||||
$523,989 | $523,989 |
(1) | Callable FHLBB advances are shown in the respective periods assuming that the callable debt is redeemed at the call date while all other advances are shown in the periods corresponding to their scheduled maturity date. |
(2) | Weighted average rate based on scheduled maturity dates. |
(9) | Shareholders’ Equity |
(Dollars in thousands) | Actual | For Capital Adequacy Purposes | To Be "Well Capitalized" Under Prompt Corrective Action Provisions | |||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
June 30, 2012 | ||||||||||||||||||||
Total Capital (to Risk-Weighted Assets): | ||||||||||||||||||||
Corporation | $292,179 | 13.15 | % | $177,736 | 8.00 | % | $222,171 | 10.00 | % | |||||||||||
Bank | $287,344 | 12.95 | % | $177,517 | 8.00 | % | $221,896 | 10.00 | % | |||||||||||
Tier 1 Capital (to Risk-Weighted Assets): | ||||||||||||||||||||
Corporation | $264,372 | 11.90 | % | $88,868 | 4.00 | % | $133,302 | 6.00 | % | |||||||||||
Bank | $259,571 | 11.70 | % | $88,758 | 4.00 | % | $133,137 | 6.00 | % | |||||||||||
Tier 1 Capital (to Average Assets): (1) | ||||||||||||||||||||
Corporation | $264,372 | 9.00 | % | $117,480 | 4.00 | % | $146,850 | 5.00 | % | |||||||||||
Bank | $259,571 | 8.85 | % | $117,284 | 4.00 | % | $146,605 | 5.00 | % | |||||||||||
December 31, 2011 | ||||||||||||||||||||
Total Capital (to Risk-Weighted Assets): | ||||||||||||||||||||
Corporation | $279,751 | 12.86 | % | $174,073 | 8.00 | % | $217,592 | 10.00 | % | |||||||||||
Bank | $275,183 | 12.66 | % | $173,845 | 8.00 | % | $217,307 | 10.00 | % | |||||||||||
Tier 1 Capital (to Risk-Weighted Assets): | ||||||||||||||||||||
Corporation | $252,516 | 11.61 | % | $87,037 | 4.00 | % | $130,555 | 6.00 | % | |||||||||||
Bank | $247,983 | 11.41 | % | $86,923 | 4.00 | % | $130,384 | 6.00 | % | |||||||||||
Tier 1 Capital (to Average Assets): (1) | ||||||||||||||||||||
Corporation | $252,516 | 8.70 | % | $116,158 | 4.00 | % | $145,198 | 5.00 | % | |||||||||||
Bank | $247,983 | 8.55 | % | $115,961 | 4.00 | % | $144,952 | 5.00 | % |
(10) | Derivative Financial Instruments |
(Dollars in thousands) | Asset Derivatives | Liability Derivatives | |||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||
Balance Sheet Location | Jun 30, 2012 | Dec 31, 2011 | Balance Sheet Location | Jun 30, 2012 | Dec 31, 2011 | ||||||||||||||
Derivatives Designated as Cash Flow Hedging Instruments: | |||||||||||||||||||
Interest rate risk management contracts: | |||||||||||||||||||
Interest rate swap contracts | $— | $— | Other liabilities | $1,775 | $1,802 | ||||||||||||||
Derivatives not Designated as Hedging Instruments: | |||||||||||||||||||
Forward loan commitments: | |||||||||||||||||||
Commitments to originate fixed-rate mortgage loans to be sold | Other assets | 3,065 | 1,864 | Other liabilities | 2 | — | |||||||||||||
Commitments to sell fixed-rate mortgage loans | Other assets | 4 | — | Other liabilities | 3,889 | 2,580 | |||||||||||||
Customer related derivative contracts: | |||||||||||||||||||
Interest rate swaps with customers | Other assets | 4,225 | 4,513 | — | — | ||||||||||||||
Mirror swaps with counterparties | — | — | Other liabilities | 4,357 | 4,669 | ||||||||||||||
Total | $7,294 | $6,377 | $10,023 | $9,051 |
(Dollars in thousands) | Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | Location of Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Gain (Loss) Recognized in Income (Ineffective Portion) | ||||||||||||||||||||||
Three Months | Six Months | Three Months | Six Months | ||||||||||||||||||||||
Periods ended June 30, | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||
Derivatives in Cash Flow Hedging Relationships: | |||||||||||||||||||||||||
Interest rate risk management contracts: | |||||||||||||||||||||||||
Interest rate swap contracts | ($16 | ) | ($346 | ) | $19 | $(174) | Interest Expense | $— | $— | $— | $— | ||||||||||||||
Total | ($16 | ) | ($346 | ) | $19 | $(174) | $— | $— | $— | $— |
(Dollars in thousands) | Gain (Loss) Recognized in Income | ||||||||||||||||
Location of Gain (Loss) Recognized in Income | Three Months | Six Months | |||||||||||||||
Periods ended June 30, | 2012 | 2011 | 2012 | 2011 | |||||||||||||
Derivatives not Designated as Hedging Instruments: | |||||||||||||||||
Forward loan commitments: | |||||||||||||||||
Commitments to originate fixed-rate mortgage loans to be sold | Net gains on loan sales & commissions on loans originated for others | $1,248 | ($53 | ) | $1,199 | $33 | |||||||||||
Commitments to sell fixed-rate mortgage loans | Net gains on loan sales & commissions on loans originated for others | (1,586 | ) | 42 | (1,305 | ) | (506 | ) | |||||||||
Customer related derivative contracts: | |||||||||||||||||
Interest rate swaps with customers | Net gains (losses) on interest rate swaps | 398 | 1,214 | 609 | 1,118 | ||||||||||||
Mirror swaps with counterparties | Net gains (losses) on interest rate swaps | (401 | ) | (1,249 | ) | (585 | ) | (1,077 | ) | ||||||||
Total | ($341 | ) | ($46 | ) | ($82 | ) | ($432 | ) |
(11) | Fair Value Measurements |
(Dollars in thousands) | June 30, 2012 | December 31, 2011 | |||||||||||||
Notional or Principal Amount | Fair Value | Notional or Principal Amount | Fair Value | ||||||||||||
Mortgage loans held for sale (1) | $22,708 | $23,530 | $19,624 | $20,340 | |||||||||||
Commitments to originate | 83,633 | 3,063 | 56,950 | 1,864 | |||||||||||
Commitments to sell | 106,340 | (3,885 | ) | 76,574 | (2,580 | ) |
(1) | At June 30, 2012, the difference between the aggregate fair value and the aggregate principal amount of mortgage loans held for sale amounted to $822 thousand. There were no mortgage loans held for sale 90 days or more past due as of June 30, 2012. |
(Dollars in thousands) | |||||||||||||||
Three Months | Six Months | ||||||||||||||
Periods ended June 30, | 2012 | 2011 | 2012 | 2011 | |||||||||||
Mortgage loans held for sale | $338 | $— | $106 | $— | |||||||||||
Commitments to originate | 1,248 | (53 | ) | 1,199 | 33 | ||||||||||
Commitments to sell | (1,586 | ) | 42 | (1,305 | ) | (506 | ) | ||||||||
Total changes in fair value | $— | ($11 | ) | $— | ($473 | ) |
• | Level 1 – Quoted prices for identical assets or liabilities in active markets. |
• | Level 2 – Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. |
• | Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable in the markets and which reflect the Corporation’s market assumptions. |
(Dollars in thousands) | Assets/Liabilities at Fair Value | ||||||||||||||
Fair Value Measurements Using | |||||||||||||||
June 30, 2012 | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | |||||||||||||||
Securities available for sale: | |||||||||||||||
Obligations of U.S. government-sponsored enterprises | $— | $32,319 | $— | $32,319 | |||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | — | 324,292 | — | 324,292 | |||||||||||
States and political subdivisions | — | 73,723 | — | 73,723 | |||||||||||
Trust preferred securities: | |||||||||||||||
Individual name issuers | — | 23,620 | — | 23,620 | |||||||||||
Collateralized debt obligations | — | — | 767 | 767 | |||||||||||
Corporate bonds | — | 14,446 | — | 14,446 | |||||||||||
Mortgage loans held for sale | — | 23,530 | — | 23,530 | |||||||||||
Derivative assets (1): | |||||||||||||||
Interest rate swap contracts with customers | — | 4,225 | — | 4,225 | |||||||||||
Forward loan commitments | — | 3,069 | — | 3,069 | |||||||||||
Total assets at fair value on a recurring basis | $— | $499,224 | $767 | $499,991 | |||||||||||
Liabilities: | |||||||||||||||
Derivative liabilities (1): | |||||||||||||||
Mirror swap contracts with customers | $— | $4,357 | $— | $4,357 | |||||||||||
Interest rate risk management swap contracts | — | 1,775 | — | 1,775 | |||||||||||
Forward loan commitments | — | 3,891 | — | 3,891 | |||||||||||
Total liabilities at fair value on a recurring basis | $— | $10,023 | $— | $10,023 |
(1) | Derivative assets are included in other assets and derivative liabilities are reported in other liabilities in the Consolidated Balance Sheets. |
(Dollars in thousands) | Assets/Liabilities at Fair Value | ||||||||||||||
Fair Value Measurements Using | |||||||||||||||
December 31, 2011 | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | |||||||||||||||
Securities available for sale: | |||||||||||||||
Obligations of U.S. government-sponsored enterprises | $— | $32,833 | $— | $32,833 | |||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | — | 389,658 | — | 389,658 | |||||||||||
States and political subdivisions | — | 79,493 | — | 79,493 | |||||||||||
Trust preferred securities: | |||||||||||||||
Individual name issuers | — | 22,396 | — | 22,396 | |||||||||||
Collateralized debt obligations | — | — | 887 | 887 | |||||||||||
Corporate bonds | — | 14,282 | — | 14,282 | |||||||||||
Perpetual preferred stocks | 1,704 | — | — | 1,704 | |||||||||||
Mortgage loans held for sale | — | 20,340 | — | 20,340 | |||||||||||
Derivative assets (1): | |||||||||||||||
Interest rate swap contracts with customers | — | 4,513 | — | 4,513 | |||||||||||
Forward loan commitments | — | 1,864 | — | 1,864 | |||||||||||
Total assets at fair value on a recurring basis | $1,704 | $565,379 | $887 | $567,970 | |||||||||||
Liabilities: | |||||||||||||||
Derivative liabilities (1): | |||||||||||||||
Mirror swap contracts with customers | $— | $4,669 | $— | $4,669 | |||||||||||
Interest rate risk management swap contracts | — | 1,802 | — | 1,802 | |||||||||||
Forward loan commitments | — | 2,580 | — | 2,580 | |||||||||||
Total liabilities at fair value on a recurring basis | $— | $9,051 | $— | $9,051 |
(1) | Derivative assets are included in other assets and derivative liabilities are reported in other liabilities in the Consolidated Balance Sheets. |
Three months ended June 30, | 2012 | 2011 | |||||||||||||
(Dollars in thousands) | Securities Available for Sale (1) | Securities Available for Sale (1) | Derivative Assets / (Liabilities) (2) | Total | |||||||||||
Balance at beginning of period | $749 | $752 | ($27 | ) | $725 | ||||||||||
Gains and losses (realized and unrealized): | |||||||||||||||
Included in earnings (3) | — | — | (11 | ) | (11 | ) | |||||||||
Included in other comprehensive income | 18 | 182 | — | 182 | |||||||||||
Balance at end of period | $767 | $934 | ($38 | ) | $896 |
Six months ended June 30, | 2012 | 2011 | |||||||||||||
(Dollars in thousands) | Securities Available for Sale (1) | Securities Available for Sale (1) | Derivative Assets / (Liabilities) (2) | Total | |||||||||||
Balance at beginning of period | $887 | $806 | $435 | $1,241 | |||||||||||
Gains and losses (realized and unrealized): | |||||||||||||||
Included in earnings (3) | (209 | ) | (33 | ) | (473 | ) | (506 | ) | |||||||
Included in other comprehensive income | 89 | 161 | — | 161 | |||||||||||
Balance at end of period | $767 | $934 | ($38 | ) | $896 |
(1) | During the periods indicated, Level 3 securities available for sale were comprised of two pooled trust preferred debt securities, in the form of collateralized debt obligations. |
(2) | During the periods indicated, Level 3 derivative assets / liabilities consisted of forward loan commitments (interest rate lock commitments and commitments to sell fixed-rate residential mortgages). After evaluating forward loan commitments during the third quarter of 2011, it was determined that significant inputs and significant value drivers were observable in active markets, and the Corporation therefore reclassified these derivatives from out of Level 3 into Level 2. |
(3) | Losses included in earnings for Level 3 securities available for sale consisted of credit-related impairment losses on two Level 3 pooled trust preferred debt securities. No credit-related impairment losses were recognized during the three months ended June 30, 2012 and 2011. Credit-related impairment losses of $209 thousand and $33 thousand were recognized during the six months ended June 30, 2012 and 2011, respectively. The losses included in earnings for Level 3 derivative assets and liabilities, which were comprised of forward loan commitments (interest rate lock commitments and commitments to sell fixed-rate residential mortgages), were included in net gains on loan sales and commissions on loans originated for others in the Consolidated Statements of Income. |
(Dollars in thousands) | June 30, 2012 | ||||||||
Fair Value | Valuation Technique | Unobservable Input | Range of Inputs Utilized (Weighted Average) | ||||||
Trust preferred securities: | |||||||||
Collateralized debt obligations | $767 | Discounted Cash Flow | Discount Rate | 17.50% | |||||
Cumulative Default % | 5.2% - 100% (27.1%) | ||||||||
Loss Given Default % | 85% - 100% (90.9%) |
(Dollars in thousands) | Carrying Value at June 30, 2012 | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Collateral dependent impaired loans | $— | $— | $2,792 | $2,792 | |||||||||||
Property acquired through foreclosure or repossession | — | — | 1,070 | 1,070 | |||||||||||
Total assets at fair value on a nonrecurring basis | $— | $— | $3,862 | $3,862 |
(Dollars in thousands) | Carrying Value at June 30, 2011 | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Collateral dependent impaired loans | $— | $— | $3,292 | $3,292 | |||||||||||
Property acquired through foreclosure or repossession | — | — | 1,449 | 1,449 | |||||||||||
Total assets at fair value on a nonrecurring basis | $— | $— | $4,741 | $4,741 |
(Dollars in thousands) | June 30, 2012 | ||||||||
Fair Value | Valuation Technique | Unobservable Input | Range of Inputs Utilized (Weighted Average) | ||||||
Collateral dependent impaired loans | $2,792 | Appraisals of collateral | Discount for costs to sell | 0% - 50% (18%) | |||||
Appraisal adjustments (1) | 10% - 15% (15%) | ||||||||
Property acquired through foreclosure or repossession | $1,070 | Appraisals of collateral | Discount for costs to sell | 0% - 15% (8%) | |||||
Appraisal adjustments (1) | 6% - 47% (14%) |
(1) | Management may adjust appraisal values to reflect market value declines or other discounts resulting from its knowledge of the property. |
(Dollars in thousands) | Fair Value Measurements | ||||||||||||||||||
June 30, 2012 | Carrying Amount | Estimated Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
Financial Assets: | |||||||||||||||||||
Securities held to maturity | $47,026 | $48,220 | $— | $48,220 | $— | ||||||||||||||
Loans, net of allowance for loan losses | 2,183,394 | 2,279,875 | — | — | 2,279,875 | ||||||||||||||
Loan servicing rights (1) | 851 | 1,012 | — | — | 1,012 | ||||||||||||||
Financial Liabilities: | |||||||||||||||||||
Time deposits | $892,383 | $903,000 | $— | $903,000 | $— | ||||||||||||||
FHLBB advances | 523,989 | 560,747 | — | 560,747 | — | ||||||||||||||
Junior subordinated debentures | 32,991 | 20,785 | — | 20,785 | — |
(1) | The carrying value of loan servicing rights is net of $161 thousand in reserves as of June 30, 2012. The estimated fair value does not include such adjustment. |
(Dollars in thousands) | Fair Value Measurements | ||||||||||||||||||
December 31, 2011 | Carrying Amount | Estimated Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
Financial Assets: | |||||||||||||||||||
Securities held to maturity | $52,139 | $52,499 | $— | $52,499 | $— | ||||||||||||||
Loans, net of allowance for loan losses | 2,117,357 | 2,198,940 | — | — | 2,198,940 | ||||||||||||||
Loan servicing rights (1) | 765 | 937 | — | — | 937 | ||||||||||||||
Financial Liabilities: | |||||||||||||||||||
Time deposits | $878,794 | $891,378 | $— | $891,378 | $— | ||||||||||||||
FHLBB advances | 540,450 | 577,315 | — | 577,315 | — | ||||||||||||||
Junior subordinated debentures | 32,991 | 20,391 | — | 20,391 | — |
(1) | The carrying value of loan servicing rights is net of $172 thousand in reserves as of December 31, 2011. The estimated fair value does not include such adjustment. |
(12) | Defined Benefit Pension Plans |
(Dollars in thousands) | Qualified Pension Plan | Non-Qualified Retirement Plans | |||||||||||||||||||||||||||||
Three Months | Six Months | Three Months | Six Months | ||||||||||||||||||||||||||||
Periods ended June 30, | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||
Service cost | $643 | $578 | $1,287 | $1,157 | $37 | $18 | $75 | $36 | |||||||||||||||||||||||
Interest cost | 706 | 644 | 1,412 | 1,289 | 126 | 124 | 252 | 248 | |||||||||||||||||||||||
Expected return on plan assets | (747 | ) | (698 | ) | (1,493 | ) | (1,397 | ) | — | — | — | — | |||||||||||||||||||
Amortization of prior service cost | (9 | ) | (9 | ) | (17 | ) | (17 | ) | — | — | — | — | |||||||||||||||||||
Recognized net actuarial loss | 247 | 99 | 491 | 196 | 30 | 3 | 59 | 6 | |||||||||||||||||||||||
Net periodic benefit cost | $840 | $614 | $1,680 | $1,228 | $193 | $145 | $386 | $290 |
(13) | Share-Based Compensation Arrangements |
(Dollars in thousands) | |||||||||||||||
Three Months | Six Months | ||||||||||||||
Periods ended June 30, | 2012 | 2011 | 2012 | 2011 | |||||||||||
Share-based compensation expense | $464 | $352 | $876 | $680 | |||||||||||
Related tax benefit | $166 | $125 | $313 | $242 |
Six months ended June 30, | 2012 | 2011 | |||
Expected term (years) | 9.0 | 9.0 | |||
Expected dividend yield | 3.45 | % | 3.33 | % | |
Weighted average expected volatility | 42.97 | % | 41.90 | % | |
Weighted average risk-free interest rate | 1.53 | % | 3.05 | % |
Number of Share Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (000's) | |||||||||
Outstanding at January 1, 2012 | 712,061 | $22.96 | ||||||||||
Granted | 99,775 | 23.27 | ||||||||||
Exercised | (99,846 | ) | 20.04 | |||||||||
Forfeited or expired | (15,925 | ) | 27.56 | |||||||||
Outstanding at June 30, 2012 | 696,065 | $23.32 | 5.1 | $1,481 | ||||||||
As of June 30, 2012: | ||||||||||||
Options exercisable | 443,540 | $24.77 | 2.9 | $572 | ||||||||
Options expected to vest in future periods | 252,525 | $20.78 | 8.9 | $910 |
Number of Shares | Weighted Average Grant Date Fair Value | |||||
Nonvested at January 1, 2012 | 91,250 | $19.84 | ||||
Granted | 27,725 | 23.54 | ||||
Vested | (4,819 | ) | 19.60 | |||
Forfeited | (4,181 | ) | 21.94 | |||
Nonvested at June 30, 2012 | 109,975 | $20.70 |
Number of Shares | Weighted Average Grant Date Fair Value | |||||
Performance shares at January 1, 2012 | 76,341 | $19.97 | ||||
Granted | 46,200 | 23.65 | ||||
Vested | (2,666 | ) | 21.62 | |||
Forfeited | (2,335 | ) | 17.03 | |||
Performance shares at June 30, 2012 | 117,540 | $21.44 |
(14) | Business Segments |
(Dollars in thousands) | Commercial Banking | Wealth Management Services | Corporate | Consolidated Total | |||||||||||||||||||||||
Three months ended June 30, | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||
Net interest income (expense) | $19,364 | $18,809 | ($2 | ) | ($3 | ) | $3,049 | $2,258 | $22,411 | $21,064 | |||||||||||||||||
Noninterest income | 7,580 | 4,850 | 7,472 | 7,510 | 1,122 | 925 | 16,174 | 13,285 | |||||||||||||||||||
Total income | 26,944 | 23,659 | 7,470 | 7,507 | 4,171 | 3,183 | 38,585 | 34,349 | |||||||||||||||||||
Provision for loan losses | 600 | 1,200 | — | — | — | — | 600 | 1,200 | |||||||||||||||||||
Noninterest expenses: | |||||||||||||||||||||||||||
Depreciation and amortization expense | 602 | 599 | 331 | 341 | 54 | 70 | 987 | 1,010 | |||||||||||||||||||
Other noninterest expenses | 15,858 | 13,581 | 4,827 | 4,917 | 3,556 | 2,756 | 24,241 | 21,254 | |||||||||||||||||||
Total noninterest expenses | 16,460 | 14,180 | 5,158 | 5,258 | 3,610 | 2,826 | 25,228 | 22,264 | |||||||||||||||||||
Income before income taxes | 9,884 | 8,279 | 2,312 | 2,249 | 561 | 357 | 12,757 | 10,885 | |||||||||||||||||||
Income tax expense (benefit) | 3,397 | 2,764 | 858 | 838 | (211 | ) | (282 | ) | 4,044 | 3,320 | |||||||||||||||||
Net income | $6,487 | $5,515 | $1,454 | $1,411 | $772 | $639 | $8,713 | $7,565 | |||||||||||||||||||
Total assets at period end | $2,331,097 | $2,151,315 | $49,869 | $51,520 | $660,084 | $733,471 | $3,041,050 | $2,936,306 | |||||||||||||||||||
Expenditures for long-lived assets | $1,782 | $394 | $7 | $90 | $12 | $42 | $1,801 | $526 |
(Dollars in thousands) | Commercial Banking | Wealth Management Services | Corporate | Consolidated Total | |||||||||||||||||||||||
Six months ended June 30, | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||
Net interest income (expense) | $38,992 | $37,213 | $1 | ($9 | ) | $5,803 | $4,187 | $44,796 | $41,391 | ||||||||||||||||||
Noninterest income | 14,287 | 9,031 | 14,657 | 14,590 | 1,462 | 1,361 | 30,406 | 24,982 | |||||||||||||||||||
Total income | 53,279 | 46,244 | 14,658 | 14,581 | 7,265 | 5,548 | 75,202 | 66,373 | |||||||||||||||||||
Provision for loan losses | 1,500 | 2,700 | — | — | — | — | 1,500 | 2,700 | |||||||||||||||||||
Noninterest expenses: | |||||||||||||||||||||||||||
Depreciation and amortization expense | 1,204 | 1,199 | 633 | 678 | 120 | 138 | 1,957 | 2,015 | |||||||||||||||||||
Other noninterest expenses | 30,624 | 26,271 | 9,799 | 9,587 | 6,247 | 5,131 | 46,670 | 40,989 | |||||||||||||||||||
Total noninterest expenses | 31,828 | 27,470 | 10,432 | 10,265 | 6,367 | 5,269 | 48,627 | 43,004 | |||||||||||||||||||
Income before income taxes | 19,951 | 16,074 | 4,226 | 4,316 | 898 | 279 | 25,075 | 20,669 | |||||||||||||||||||
Income tax expense (benefit) | 6,848 | 5,352 | 1,577 | 1,608 | (501 | ) | (656 | ) | 7,924 | 6,304 | |||||||||||||||||
Net income | $13,103 | $10,722 | $2,649 | $2,708 | $1,399 | $935 | $17,151 | $14,365 | |||||||||||||||||||
Total assets at period end | $2,331,097 | $2,151,315 | $49,869 | $51,520 | $660,084 | $733,471 | $3,041,050 | $2,936,306 | |||||||||||||||||||
Expenditures for long-lived assets | $2,674 | $816 | $713 | $348 | $66 | $75 | $3,453 | $1,239 |
(15) | Other Comprehensive Income |
2012 | 2011 | ||||||||||||||||||
(Dollars in thousands) | Pre-tax Amounts | Income Taxes | Net of Tax | Pre-tax Amounts | Income Taxes | Net of Tax | |||||||||||||
Securities available for sale: | |||||||||||||||||||
Unrealized (losses) gains on securities arising during the period | ($934 | ) | ($333 | ) | ($601 | ) | $5,495 | $1,958 | $3,537 | ||||||||||
Less: reclassification adjustment for net gains on securities realized in net income | 299 | 107 | 192 | 226 | 81 | 145 | |||||||||||||
Net unrealized (losses) gains on securities available for sale | (1,233 | ) | (440 | ) | (793 | ) | 5,269 | 1,877 | 3,392 | ||||||||||
Cash flow hedges: | |||||||||||||||||||
Unrealized losses on cash flow hedges arising during the period | (199 | ) | (71 | ) | (128 | ) | (727 | ) | (259 | ) | (468 | ) | |||||||
Less: reclassification adjustment for amount of gains on cash flow hedges realized in net income | 174 | 62 | 112 | 190 | 68 | 122 | |||||||||||||
Net unrealized losses on cash flow hedges | (25 | ) | (9 | ) | (16 | ) | (537 | ) | (191 | ) | (346 | ) | |||||||
Defined benefit plan obligation adjustment | 266 | 95 | 171 | 93 | 33 | 60 | |||||||||||||
Total other comprehensive (loss) income | ($992 | ) | ($354 | ) | ($638 | ) | $4,825 | $1,719 | $3,106 |
2012 | 2011 | ||||||||||||||||||
(Dollars in thousands) | Pre-tax Amounts | Income Taxes | Net of Tax | Pre-tax Amounts | Income Taxes | Net of Tax | |||||||||||||
Securities available for sale: | |||||||||||||||||||
Unrealized (losses) gains on securities arising during the period | ($693 | ) | ($235 | ) | ($458 | ) | $5,636 | $2,010 | $3,626 | ||||||||||
Less: reclassification adjustment for net gains on securities realized in net income | 214 | 76 | 138 | 143 | 51 | 92 | |||||||||||||
Net unrealized (losses) gains on securities available for sale | (907 | ) | (311 | ) | (596 | ) | 5,493 | 1,959 | 3,534 | ||||||||||
Reclassification adjustment for change in non-credit portion of OTTI realized losses transferred to net income | 124 | 44 | 80 | (21 | ) | (8 | ) | (13 | ) | ||||||||||
Cash flow hedges: | |||||||||||||||||||
Unrealized losses on cash flow hedges arising during the period | (320 | ) | (116 | ) | (204 | ) | (651 | ) | (232 | ) | (419 | ) | |||||||
Less: reclassification adjustment for amount of gains on cash flow hedges realized in net income | 347 | 124 | 223 | 381 | 136 | 245 | |||||||||||||
Net unrealized gains (losses) on cash flow hedges | 27 | 8 | 19 | (270 | ) | (96 | ) | (174 | ) | ||||||||||
Defined benefit plan obligation adjustment | 533 | 177 | 356 | 186 | 66 | 120 | |||||||||||||
Total other comprehensive (loss) income | ($223 | ) | ($82 | ) | ($141 | ) | $5,388 | $1,921 | $3,467 |
(Dollars in thousands) | Net Unrealized Gains on AFS Securities | Noncredit -related Impairment | Net Unrealized Losses on Cash Flow Hedges | Pension Benefit Adjustment | Total | ||||||||||||||
Balance at December 31, 2011 | $13,143 | ($2,062 | ) | ($1,127 | ) | ($11,849 | ) | ($1,895 | ) | ||||||||||
Period change, net of tax | (596 | ) | 80 | 19 | 356 | (141 | ) | ||||||||||||
Balance at June 30, 2012 | $12,547 | ($1,982 | ) | ($1,108 | ) | ($11,493 | ) | ($2,036 | ) | ||||||||||
Balance at December 31, 2010 | $11,936 | ($2,150 | ) | ($671 | ) | ($5,090 | ) | $4,025 | |||||||||||
Period change, net of tax | 3,534 | (13 | ) | (174 | ) | 120 | 3,467 | ||||||||||||
Balance at June 30, 2011 | $15,470 | ($2,163 | ) | ($845 | ) | ($4,970 | ) | $7,492 |
(16) | Earnings Per Common Share |
(Dollars and shares in thousands, except per share amounts) | |||||||||||||||
Three Months | Six Months | ||||||||||||||
Periods ended June 30, | 2012 | 2011 | 2012 | 2011 | |||||||||||
Net income | $8,713 | $7,565 | $17,151 | $14,365 | |||||||||||
Less dividends and undistributed earnings allocated to participating securities | (40 | ) | (30 | ) | (74 | ) | (57 | ) | |||||||
Net income applicable to common shareholders | $8,673 | $7,535 | $17,077 | $14,308 | |||||||||||
Weighted average basic common shares | 16,358 | 16,252 | 16,344 | 16,225 | |||||||||||
Dilutive effect of common stock equivalents | 34 | 32 | 37 | 32 | |||||||||||
Weighted average diluted common shares | 16,392 | 16,284 | 16,381 | 16,257 | |||||||||||
Earnings per common share: | |||||||||||||||
Basic | $0.53 | $0.46 | $1.04 | $0.88 | |||||||||||
Diluted | $0.53 | $0.46 | $1.04 | $0.88 |
(17) | Commitments and Contingencies |
(Dollars in thousands) | Jun 30, 2012 | Dec 31, 2011 | |||||
Financial instruments whose contract amounts represent credit risk: | |||||||
Commitments to extend credit: | |||||||
Commercial loans | $221,163 | $222,805 | |||||
Home equity lines | 183,895 | 185,124 | |||||
Other loans | 33,395 | 35,035 | |||||
Standby letters of credit | 8,777 | 8,560 | |||||
Financial instruments whose notional amounts exceed the amount of credit risk: | |||||||
Forward loan commitments: | |||||||
Commitments to originate fixed-rate mortgage loans to be sold | 83,633 | 56,950 | |||||
Commitments to sell fixed-rate mortgage loans | 106,340 | 76,574 | |||||
Customer related derivative contracts: | |||||||
Interest rate swaps with customers | 60,958 | 61,586 | |||||
Mirror swaps with counterparties | 60,958 | 61,586 | |||||
Interest rate risk management contract: | |||||||
Interest rate swap | 32,991 | 32,991 |
(Dollars in thousands) | ||||
Periods ending: | July 1, 2012 to December 31, 2012 | $1,135 | ||
2013 | 2,256 | |||
2014 | 2,252 | |||
2015 | 1,740 | |||
2016 | 1,463 | |||
2017 and thereafter | 11,860 | |||
Total minimum lease payments | $20,706 |
• | Gains recognized on the sale of bank property, included in other income, amounted to $348 thousand and $203 thousand, respectively, in the three months ended June 30, 2012 and 2011. |
• | A charge of $131 thousand, classified in net occupancy expense, was recognized in the second quarter of 2012 due to the termination of an operating lease associated with the planned closure of a branch in September 2012. |
• | Balance sheet management transactions were executed in the second quarters of 2012 and 2011, consisting of the sale of mortgage-backed securities and the prepayment of Federal Home Loan Bank of Boston (“FHLBB”) advances. As a result, in the three months ended June 30, 2012 and 2011, the Corporation recognized net realized gains of $217 thousand and $226 thousand, respectively, and debt prepayment penalty expense of $961 thousand and $221 thousand, respectively. |
• | Net impairment losses recognized in earnings on investment securities totaled $209 thousand and $33 thousand, respectively, for the first six months of 2012 and 2011. There were no such impairment losses recognized in the quarters ended June 30, 2012 and 2011. |
Three months ended June 30, | 2012 | 2011 | |||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||
Assets: | |||||||||||||||||||||
Commercial loans | $1,166,545 | $14,590 | 5.03 | % | $1,065,619 | $13,900 | 5.23 | % | |||||||||||||
Residential real estate loans, including mortgage loans held for sale | 714,154 | 7,809 | 4.40 | % | 656,570 | 7,732 | 4.72 | % | |||||||||||||
Consumer loans | 320,442 | 3,067 | 3.85 | % | 324,890 | 3,166 | 3.91 | % | |||||||||||||
Total loans | 2,201,141 | 25,466 | 4.65 | % | 2,047,079 | 24,798 | 4.86 | % | |||||||||||||
Cash, federal funds sold and short-term investments | 30,078 | 17 | 0.23 | % | 34,166 | 13 | 0.15 | % | |||||||||||||
FHLBB stock | 40,418 | 54 | 0.54 | % | 42,008 | 32 | 0.31 | % | |||||||||||||
Taxable debt securities | 451,207 | 4,069 | 3.63 | % | 486,905 | 4,869 | 4.01 | % | |||||||||||||
Nontaxable debt securities | 70,462 | 1,039 | 5.93 | % | 78,447 | 1,150 | 5.88 | % | |||||||||||||
Corporate stocks | 1,804 | 34 | 7.58 | % | 2,513 | 47 | 7.50 | % | |||||||||||||
Total securities | 523,473 | 5,142 | 3.95 | % | 567,865 | 6,066 | 4.28 | % | |||||||||||||
Total interest-earning assets | 2,795,110 | 30,679 | 4.41 | % | 2,691,118 | 30,909 | 4.61 | % | |||||||||||||
Noninterest-earning assets | 222,057 | 212,968 | |||||||||||||||||||
Total assets | $3,017,167 | $2,904,086 | |||||||||||||||||||
Liabilities and Shareholders’ Equity: | |||||||||||||||||||||
NOW accounts | $254,528 | $39 | 0.06 | % | $229,746 | $60 | 0.10 | % | |||||||||||||
Money market accounts | 405,241 | 232 | 0.23 | % | 393,945 | 249 | 0.25 | % | |||||||||||||
Savings accounts | 258,824 | 72 | 0.11 | % | 224,588 | 69 | 0.12 | % | |||||||||||||
Time deposits | 905,466 | 3,042 | 1.35 | % | 935,813 | 3,652 | 1.57 | % | |||||||||||||
FHLBB advances | 494,257 | 3,998 | 3.25 | % | 494,989 | 4,685 | 3.80 | % | |||||||||||||
Junior subordinated debentures | 32,991 | 391 | 4.77 | % | 32,991 | 392 | 4.77 | % | |||||||||||||
Other | 973 | 5 | 2.07 | % | 21,663 | 242 | 4.48 | % | |||||||||||||
Total interest-bearing liabilities | 2,352,280 | 7,779 | 1.33 | % | 2,333,735 | 9,349 | 1.61 | % | |||||||||||||
Demand deposits | 321,094 | 251,585 | |||||||||||||||||||
Other liabilities | 52,939 | 39,485 | |||||||||||||||||||
Shareholders’ equity | 290,854 | 279,281 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $3,017,167 | $2,904,086 | |||||||||||||||||||
Net interest income | $22,900 | $21,560 | |||||||||||||||||||
Interest rate spread | 3.08 | % | 3.00 | % | |||||||||||||||||
Net interest margin | 3.30 | % | 3.21 | % |
(Dollars in thousands) | |||||||
Three months ended June 30, | 2012 | 2011 | |||||
Commercial loans | $122 | $91 | |||||
Nontaxable debt securities | 357 | 392 | |||||
Corporate stocks | 10 | 13 | |||||
Total | $489 | $496 |
Six months ended June 30, | 2012 | 2011 | |||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||
Assets: | |||||||||||||||||||||
Commercial loans | $1,144,114 | $28,888 | 5.08 | % | $1,051,577 | $27,406 | 5.26 | % | |||||||||||||
Residential real estate loans, including mortgage loans held for sale | 717,430 | 15,884 | 4.45 | % | 653,938 | 15,432 | 4.76 | % | |||||||||||||
Consumer loans | 320,195 | 6,164 | 3.87 | % | 324,471 | 6,310 | 3.92 | % | |||||||||||||
Total loans | 2,181,739 | 50,936 | 4.69 | % | 2,029,986 | 49,148 | 4.88 | % | |||||||||||||
Cash, federal funds sold and short-term investments | 41,196 | 37 | 0.18 | % | 39,029 | 37 | 0.19 | % | |||||||||||||
FHLBB stock | 41,012 | 106 | 0.52 | % | 42,008 | 64 | 0.31 | % | |||||||||||||
Taxable debt securities | 468,828 | 8,446 | 3.62 | % | 489,544 | 9,642 | 3.97 | % | |||||||||||||
Nontaxable debt securities | 71,185 | 2,098 | 5.93 | % | 78,947 | 2,316 | 5.92 | % | |||||||||||||
Corporate stocks | 1,828 | 67 | 7.37 | % | 2,512 | 96 | 7.71 | % | |||||||||||||
Total securities | 541,841 | 10,611 | 3.94 | % | 571,003 | 12,054 | 4.26 | % | |||||||||||||
Total interest-earning assets | 2,805,788 | 61,690 | 4.42 | % | 2,682,026 | 61,303 | 4.61 | % | |||||||||||||
Noninterest-earning assets | 221,430 | 212,379 | |||||||||||||||||||
Total assets | $3,027,218 | $2,894,405 | |||||||||||||||||||
Liabilities and Shareholders’ Equity: | |||||||||||||||||||||
NOW accounts | $250,390 | $85 | 0.07 | % | $227,375 | $118 | 0.10 | % | |||||||||||||
Money market accounts | 408,647 | 457 | 0.22 | % | 396,614 | 572 | 0.29 | % | |||||||||||||
Savings accounts | 253,837 | 142 | 0.11 | % | 222,481 | 144 | 0.13 | % | |||||||||||||
Time deposits | 895,405 | 6,135 | 1.38 | % | 941,093 | 7,398 | 1.59 | % | |||||||||||||
FHLBB advances | 509,012 | 8,083 | 3.19 | % | 485,233 | 9,417 | 3.91 | % | |||||||||||||
Junior subordinated debentures | 32,991 | 783 | 4.77 | % | 32,991 | 782 | 4.78 | % | |||||||||||||
Other | 9,938 | 239 | 4.84 | % | 22,389 | 483 | 4.35 | % | |||||||||||||
Total interest-bearing liabilities | 2,360,220 | 15,924 | 1.36 | % | 2,328,176 | 18,914 | 1.64 | % | |||||||||||||
Demand deposits | 326,159 | 250,550 | |||||||||||||||||||
Other liabilities | 53,012 | 40,520 | |||||||||||||||||||
Shareholders’ equity | 287,827 | 275,159 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $3,027,218 | $2,894,405 | |||||||||||||||||||
Net interest income | $45,766 | $42,389 | |||||||||||||||||||
Interest rate spread | 3.06 | % | 2.97 | % | |||||||||||||||||
Net interest margin | 3.28 | % | 3.19 | % |
(Dollars in thousands) | |||||||
Six months ended June 30, | 2012 | 2011 | |||||
Commercial loans | $229 | $182 | |||||
Nontaxable debt securities | 723 | 789 | |||||
Corporate stocks | 18 | 27 | |||||
Total | $970 | $998 |
(Dollars in thousands) | Three months ended | Six months ended | ||||||||||||||||||||||
June 30, 2012 vs. 2011 | June 30, 2012 vs. 2011 | |||||||||||||||||||||||
Increase (Decrease) Due to | Increase (Decrease) Due to | |||||||||||||||||||||||
Volume | Rate | Net Change | Volume | Rate | Net Change | |||||||||||||||||||
Interest on Interest-Earning Assets: | ||||||||||||||||||||||||
Commercial loans | $1,275 | ($585 | ) | $690 | $2,365 | ($883 | ) | $1,482 | ||||||||||||||||
Residential real estate loans, including mortgage loans held for sale | 646 | (569 | ) | 77 | 1,449 | (997 | ) | 452 | ||||||||||||||||
Consumer loans | (43 | ) | (56 | ) | (99 | ) | (83 | ) | (63 | ) | (146 | ) | ||||||||||||
Cash, federal funds sold and other short-term investments | (2 | ) | 6 | 4 | 2 | (2 | ) | — | ||||||||||||||||
FHLBB stock | (1 | ) | 23 | 22 | (2 | ) | 44 | 42 | ||||||||||||||||
Taxable debt securities | (344 | ) | (456 | ) | (800 | ) | (396 | ) | (800 | ) | (1,196 | ) | ||||||||||||
Nontaxable debt securities | (118 | ) | 7 | (111 | ) | (228 | ) | 10 | (218 | ) | ||||||||||||||
Corporate stocks | (13 | ) | — | (13 | ) | (25 | ) | (4 | ) | (29 | ) | |||||||||||||
Total interest income | 1,400 | (1,630 | ) | (230 | ) | 3,082 | (2,695 | ) | 387 | |||||||||||||||
Interest on Interest-Bearing Liabilities: | ||||||||||||||||||||||||
NOW accounts | 5 | (26 | ) | (21 | ) | 9 | (42 | ) | (33 | ) | ||||||||||||||
Money market accounts | 6 | (23 | ) | (17 | ) | 18 | (133 | ) | (115 | ) | ||||||||||||||
Savings accounts | 9 | (6 | ) | 3 | 20 | (22 | ) | (2 | ) | |||||||||||||||
Time deposits | (113 | ) | (497 | ) | (610 | ) | (344 | ) | (919 | ) | (1,263 | ) | ||||||||||||
FHLBB advances | (7 | ) | (680 | ) | (687 | ) | 443 | (1,777 | ) | (1,334 | ) | |||||||||||||
Junior subordinated debentures | — | (1 | ) | (1 | ) | — | 1 | 1 | ||||||||||||||||
Other | (151 | ) | (86 | ) | (237 | ) | (295 | ) | 51 | (244 | ) | |||||||||||||
Total interest expense | (251 | ) | (1,319 | ) | (1,570 | ) | (149 | ) | (2,841 | ) | (2,990 | ) | ||||||||||||
Net interest income | $1,651 | ($311 | ) | $1,340 | $3,231 | $146 | $3,377 |
(Dollars in thousands) | Three Months | Six Months | |||||||||||||||||||||||||||
Incr (Decr) | Incr (Decr) | ||||||||||||||||||||||||||||
Periods ended June 30, | 2012 | 2011 | $ | % | 2012 | 2011 | $ | % | |||||||||||||||||||||
Wealth management services: | |||||||||||||||||||||||||||||
Trust and investment advisory fees | $5,819 | $5,822 | ($3 | ) | — | % | $11,597 | $11,498 | $99 | 1 | % | ||||||||||||||||||
Mutual fund fees | 1,002 | 1,135 | (133 | ) | (12 | )% | 2,027 | 2,258 | (231 | ) | (10 | )% | |||||||||||||||||
Financial planning, commissions & other service fees | 652 | 553 | 99 | 18 | % | 1,034 | 834 | 200 | 24 | % | |||||||||||||||||||
Wealth management services | 7,473 | 7,510 | (37 | ) | — | % | 14,658 | 14,590 | 68 | — | % | ||||||||||||||||||
Service charges on deposit accounts | 764 | 909 | (145 | ) | (16 | )% | 1,523 | 1,841 | (318 | ) | (17 | )% | |||||||||||||||||
Merchant processing fees | 2,732 | 2,682 | 50 | 2 | % | 4,720 | 4,626 | 94 | 2 | % | |||||||||||||||||||
Card interchange fees | 626 | 581 | 45 | 8 | % | 1,169 | 1,068 | 101 | 9 | % | |||||||||||||||||||
Income from bank-owned life insurance | 477 | 482 | (5 | ) | (1 | )% | 963 | 958 | 5 | 1 | % | ||||||||||||||||||
Net gains on loan sales and commissions on loans originated for others | 3,015 | 537 | 2,478 | 461 | % | 6,112 | 1,062 | 5,050 | 476 | % | |||||||||||||||||||
Net realized gains on securities | 299 | 226 | 73 | 32 | % | 299 | 197 | 102 | 52 | % | |||||||||||||||||||
Net (losses) gains on interest rate swap contracts | (4 | ) | (35 | ) | 31 | 89 | % | 24 | 41 | (17 | ) | (41 | )% | ||||||||||||||||
Equity in earnings (losses) of unconsolidated subsidiaries | 124 | (145 | ) | 269 | 186 | % | 87 | (289 | ) | 376 | 130 | % | |||||||||||||||||
Other income | 668 | 538 | 130 | 24 | % | 1,060 | 921 | 139 | 15 | % | |||||||||||||||||||
Noninterest income, excluding other-than-temporary impairment losses | 16,174 | 13,285 | 2,889 | 22 | % | 30,615 | 25,015 | 5,600 | 22 | % | |||||||||||||||||||
Total other-than-temporary impairment losses on securities | — | — | — | — | % | (85 | ) | (54 | ) | (31 | ) | (57 | )% | ||||||||||||||||
Portion of loss recognized in other comprehensive income (before tax) | — | — | — | — | % | (124 | ) | 21 | (145 | ) | (690 | )% | |||||||||||||||||
Net impairment losses recognized in earnings | — | — | — | — | % | (209 | ) | (33 | ) | (176 | ) | (533 | )% | ||||||||||||||||
Total noninterest income | $16,174 | $13,285 | $2,889 | 22 | % | $30,406 | $24,982 | $5,424 | 22 | % |
(Dollars in thousands) | |||||||||||||||
Three Months | Six Months | ||||||||||||||
Periods ended June 30, | 2012 | 2011 | 2012 | 2011 | |||||||||||
Wealth Management Assets under Administration: | |||||||||||||||
Balance at the beginning of period | $4,196,447 | $4,119,207 | $3,900,061 | $3,967,207 | |||||||||||
Net investment (depreciation) appreciation & income | (131,896 | ) | 1,625 | 166,259 | 147,188 | ||||||||||
Net client cash flows | 15,362 | 27,601 | 13,593 | 34,038 | |||||||||||
Balance at the end of period | $4,079,913 | $4,148,433 | $4,079,913 | $4,148,433 |
(Dollars in thousands) | Three Months | Six Months | |||||||||||||||||||||||||||
Incr (Decr) | Incr (Decr) | ||||||||||||||||||||||||||||
Periods ended June 30, | 2012 | 2011 | $ | % | 2012 | 2011 | $ | % | |||||||||||||||||||||
Salaries and employee benefits | $14,451 | $12,398 | $2,053 | 17 | % | $28,911 | $24,226 | $4,685 | 19 | % | |||||||||||||||||||
Net occupancy | 1,527 | 1,236 | 291 | 24 | % | 3,053 | 2,557 | 496 | 19 | % | |||||||||||||||||||
Equipment | 1,143 | 1,070 | 73 | 7 | % | 2,250 | 2,119 | 131 | 6 | % | |||||||||||||||||||
Merchant processing costs | 2,320 | 2,345 | (25 | ) | (1 | )% | 3,983 | 4,014 | (31 | ) | (1 | )% | |||||||||||||||||
Outsourced services | 895 | 875 | 20 | 2 | % | 1,815 | 1,747 | 68 | 4 | % | |||||||||||||||||||
FDIC deposit insurance costs | 426 | 464 | (38 | ) | (8 | )% | 884 | 1,187 | (303 | ) | (26 | )% | |||||||||||||||||
Legal, audit and professional fees | 519 | 467 | 52 | 11 | % | 1,001 | 959 | 42 | 4 | % | |||||||||||||||||||
Advertising and promotion | 478 | 427 | 51 | 12 | % | 850 | 780 | 70 | 9 | % | |||||||||||||||||||
Amortization of intangibles | 186 | 237 | (51 | ) | (22 | )% | 373 | 475 | (102 | ) | (21 | )% | |||||||||||||||||
Foreclosed property costs | 170 | 338 | (168 | ) | (50 | )% | 468 | 504 | (36 | ) | (7 | )% | |||||||||||||||||
Debt prepayment penalties | 961 | 221 | 740 | 335 | % | 961 | 221 | 740 | 335 | % | |||||||||||||||||||
Other | 2,152 | 2,186 | (34 | ) | (2 | )% | 4,078 | 4,215 | (137 | ) | (3 | )% | |||||||||||||||||
Total noninterest expense | $25,228 | $22,264 | $2,964 | 13 | % | $48,627 | $43,004 | $5,623 | 13 | % |
(Dollars in thousands) | June 30, 2012 | December 31, 2011 | |||||||||||
Amount | % | Amount | % | ||||||||||
Securities Available for Sale: | |||||||||||||
Obligations of U.S. government-sponsored enterprises | $32,319 | 7 | % | $32,833 | 6 | % | |||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 324,292 | 69 | 389,658 | 72 | |||||||||
States and political subdivisions | 73,723 | 16 | 79,493 | 15 | |||||||||
Trust preferred securities: | |||||||||||||
Individual name issuers | 23,620 | 5 | 22,396 | 4 | |||||||||
Collateralized debt obligations | 767 | — | 887 | — | |||||||||
Corporate bonds | 14,446 | 3 | 14,282 | 3 | |||||||||
Perpetual preferred stocks | — | — | 1,704 | — | |||||||||
Total securities available for sale | $469,167 | 100 | % | $541,253 | 100 | % |
(Dollars in thousands) | June 30, 2012 | December 31, 2011 | |||||||||||
Amount | % | Amount | % | ||||||||||
Securities Held to Maturity: | |||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | $47,026 | 100 | % | $52,139 | 100 | % | |||||||
Total securities held to maturity | $47,026 | 100 | % | $52,139 | 100 | % |
(Dollars in thousands) | |||||||||||||||
June 30, 2012 | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||
New Jersey | $31,380 | $2,652 | $— | $34,032 | |||||||||||
New York | 11,442 | 768 | — | 12,210 | |||||||||||
Pennsylvania | 10,117 | 452 | — | 10,569 | |||||||||||
Illinois | 9,452 | 488 | — | 9,940 | |||||||||||
Other | 6,548 | 424 | — | 6,972 | |||||||||||
Total | $68,939 | $4,784 | $— | $73,723 |
(Dollars in thousands) | |||||||||||||||
June 30, 2012 | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||
School districts | $25,853 | $1,588 | $— | $27,441 | |||||||||||
General obligation | 35,998 | 2,786 | — | 38,784 | |||||||||||
Revenue obligations (a) | 7,088 | 410 | — | 7,498 | |||||||||||
Total | $68,939 | $4,784 | $— | $73,723 |
(a) | Includes water and sewer districts, tax revenue obligations and other. |
(Dollars in thousands) | June 30, 2012 | Credit Ratings | |||||||||||||||||||||
June 30, 2012 | Form 10-Q Filing Date | ||||||||||||||||||||||
Named Issuer (parent holding company) | (a) | Amortized Cost (b) | Fair Value | Unrealized Loss | Moody's | S&P | Moody's | S&P | |||||||||||||||
JPMorgan Chase & Co. | 2 | $9,741 | $6,900 | ($2,841 | ) | Baa2 | BBB | Baa2 | BBB | ||||||||||||||
Bank of America Corporation | 3 | 5,748 | 4,736 | (1,012 | ) | Ba2 | BB+ | (c) | Ba2 | BB+ | (c) | ||||||||||||
Wells Fargo & Company | 2 | 5,121 | 4,115 | (1,006 | ) | A3/Baa1 | A-/BBB+ | A3/Baa1 | A-/BBB+ | ||||||||||||||
SunTrust Banks, Inc. | 1 | 4,169 | 3,108 | (1,061 | ) | Baa3 | BB+ | (c) | Baa3 | BB+ | (c) | ||||||||||||
Northern Trust Corporation | 1 | 1,982 | 1,675 | (307 | ) | A3 | A- | A3 | A- | ||||||||||||||
State Street Corporation | 1 | 1,972 | 1,563 | (409 | ) | A3 | BBB+ | A3 | BBB+ | ||||||||||||||
Huntington Bancshares Incorporated | 1 | 1,925 | 1,523 | (402 | ) | Baa3 | BB+ | (c) | Baa3 | BB+ | (c) | ||||||||||||
Totals | 11 | $30,658 | $23,620 | ($7,038 | ) |
(a) | Number of separate issuances, including issuances of acquired institutions. |
(b) | Net of other-than-temporary impairment losses recognized in earnings. |
(c) | Rating is below investment grade. |
(Dollars in thousands) | June 30, 2012 | Credit Ratings | |||||||||||||||||||||||
No. of Cos. in Issuance | Deferrals & Defaults (a) | June 30, 2012 | Form 10-Q Filing Date | ||||||||||||||||||||||
Amortized Cost | Fair Value | Unrealized Loss | |||||||||||||||||||||||
Deal Name | Moody's | S&P | Moody's | S&P | |||||||||||||||||||||
Tropic CDO 1, tranche A4L (d) | $2,784 | $565 | ($2,219 | ) | 38 | 42% | Ca | (c) | (b) | Ca | (c) | (b) | |||||||||||||
Preferred Term Securities [PreTSL] XXV, tranche C1 (e) | 1,263 | 202 | (1,061 | ) | 73 | 34% | C | (c) | (b) | C | (c) | (b) | |||||||||||||
Totals | $4,047 | $767 | ($3,280 | ) |
(a) | Percentage of pool collateral in deferral or default status. |
(b) | Not rated by S&P. |
(c) | Rating is below investment grade. |
(d) | This security was placed on nonaccrual status in March 2009. The tranche instrument held by Washington Trust has been deferring a portion of interest payments since April 2010. The June 30, 2012 amortized cost was net of $2.1 million of credit-related impairment losses previously recognized in earnings reflective of payment deferrals and credit deterioration of the underlying collateral. Included in the $2.1 million, were credit-related impairment losses of $209 thousand recorded in the first quarter of 2012, reflecting adverse changes in the expected cash flows for this security. As of June 30, 2012, this security has unrealized losses of $2.2 million and a below investment grade rating of “Ca” by Moody's Investors Service Inc. (“Moody's”). Through the filing date of this report, there have been no rating changes on this security. This credit rating status has been considered by management in its assessment of the impairment status of this security. |
(e) | This security was placed on nonaccrual status in December 2008. The tranche instrument held by Washington Trust has been deferring interest payments since December 2008. The June 30, 2012 amortized cost was net of $1.2 million of credit-related impairment losses previously recognized in earnings reflective of payment deferrals and credit deterioration of the underlying collateral. The analysis of the expected cash flows for this security as of June 30, 2012 did not negatively affect the amount of credit-related impairment losses previously recognized on this security. As of June 30, 2012, the security has unrealized losses of $1.1 million and a below investment grade rating of “C” by Moody's. Through the filing date of this report, there have been no rating changes on this security. This credit rating status has been considered by management in its assessment of the impairment status of this security. |
(Dollars in thousands) | June 30, 2012 | December 31, 2011 | |||||||||||
Amount | % of Total | Amount | % of Total | ||||||||||
Rhode Island, Connecticut, Massachusetts | $629,891 | 92 | % | $589,083 | 93 | % | |||||||
New York, New Jersey, Pennsylvania | 37,428 | 6 | % | 33,317 | 5 | % | |||||||
New Hampshire | 12,271 | 2 | % | 11,668 | 2 | % | |||||||
Other | 2,185 | — | % | 1,700 | — | % | |||||||
Total | $681,775 | 100 | % | $635,768 | 100 | % |
(Dollars in thousands) | June 30, 2012 | December 31, 2011 | |||||||||||
Amount | % of Total | Amount | % of Total | ||||||||||
Rhode Island, Connecticut, Massachusetts | $679,847 | 96.7 | % | $675,935 | 96.5 | % | |||||||
New York, Virginia, New Jersey, Maryland, Pennsylvania, District of Columbia | 9,749 | 1.4 | % | 11,499 | 1.6 | % | |||||||
Ohio | 4,935 | 0.7 | % | 5,665 | 0.8 | % | |||||||
New Hampshire | 4,021 | 0.6 | % | 2,767 | 0.4 | % | |||||||
Washington, Oregon, California | 1,390 | 0.2 | % | 1,881 | 0.3 | % | |||||||
Georgia | 1,110 | 0.2 | % | 1,118 | 0.2 | % | |||||||
New Mexico, Colorado | 497 | 0.1 | % | 1,079 | 0.2 | % | |||||||
Other | 470 | 0.1 | % | 470 | — | % | |||||||
Total | $702,019 | 100.0 | % | $700,414 | 100.0 | % |
(Dollars in thousands) | Jun 30, 2012 | Dec 31, 2011 | |||||
Nonaccrual loans: | |||||||
Commercial mortgages | $2,597 | $5,709 | |||||
Commercial construction and development | — | — | |||||
Other commercial | 3,405 | 3,708 | |||||
Residential real estate mortgages | 8,659 | 10,614 | |||||
Consumer | 1,081 | 1,206 | |||||
Total nonaccrual loans | 15,742 | 21,237 | |||||
Nonaccrual investment securities | 767 | 887 | |||||
Property acquired through foreclosure or repossession, net | 2,332 | 2,647 | |||||
Total nonperforming assets | $18,841 | $24,771 | |||||
Nonperforming assets to total assets | 0.62 | % | 0.81 | % | |||
Nonperforming loans to total loans | 0.71 | % | 0.99 | % | |||
Total past due loans to total loans | 0.92 | % | 1.22 | % | |||
Accruing loans 90 days or more past due | $— | $— |
(Dollars in thousands) | June 30, 2012 | December 31, 2011 | |||||||||||||||||||||
Days Past Due | Days Past Due | ||||||||||||||||||||||
Over 90 | Under 90 | Total | Over 90 | Under 90 | Total | ||||||||||||||||||
Commercial: | |||||||||||||||||||||||
Mortgages | $2,339 | $258 | $2,597 | $4,995 | $714 | $5,709 | |||||||||||||||||
Construction and development | — | — | — | — | — | — | |||||||||||||||||
Other | 1,714 | 1,691 | 3,405 | 633 | 3,075 | 3,708 | |||||||||||||||||
Residential real estate mortgages | 4,039 | 4,620 | 8,659 | 6,283 | 4,331 | 10,614 | |||||||||||||||||
Consumer | 362 | 719 | 1,081 | 874 | 332 | 1,206 | |||||||||||||||||
Total nonaccrual loans | $8,454 | $7,288 | $15,742 | $12,785 | $8,452 | $21,237 |
(Dollars in thousands) | June 30, 2012 | December 31, 2011 | |||||||||||
Amount | % (1) | Amount | % (1) | ||||||||||
Commercial real estate loans | $2,983 | 0.44 | % | $6,931 | 1.09 | % | |||||||
Other commercial loans | 2,997 | 0.59 | % | 5,375 | 1.10 | % | |||||||
Residential real estate mortgages | 10,608 | 1.51 | % | 11,757 | 1.68 | % | |||||||
Consumer loans | 3,699 | 1.16 | % | 2,210 | 0.69 | % | |||||||
Total past due loans | $20,287 | 0.92 | % | $26,273 | 1.22 | % |
(Dollars in thousands) | Jun 30, 2012 | Dec 31, 2011 | |||||
Accruing troubled debt restructured loans: | |||||||
Commercial mortgages | $1,251 | $6,389 | |||||
Other commercial | 6,916 | 6,625 | |||||
Residential real estate mortgages | 570 | 1,481 | |||||
Consumer | 159 | 171 | |||||
Accruing troubled debt restructured loans | 8,896 | 14,666 | |||||
Nonaccrual troubled debt restructured loans: | |||||||
Commercial mortgages | — | 91 | |||||
Other commercial | 2,317 | 2,154 | |||||
Residential real estate mortgages | 2,028 | 2,615 | |||||
Consumer | 47 | 106 | |||||
Nonaccrual troubled debt restructured loans | 4,392 | 4,966 | |||||
Total troubled debt restructured loans | $13,288 | $19,632 |
(Dollars in thousands) | Jun 30, 2012 | Dec 31, 2011 | |||||
Collateral dependent impaired loans (1) | $14,550 | $22,316 | |||||
Impaired loans measured on discounted cash flow method (2) | 4,213 | 6,717 | |||||
Total impaired loans | $18,763 | $29,033 |
(1) | Net of partial charge-offs of $1.8 million and $2.3 million, respectively, at June 30, 2012 and December 31, 2011. |
(2) | Net of partial charge-offs of $209 thousand and $328 thousand, respectively, at June 30, 2012 and December 31, 2011. |
(Dollars in thousands) | June 30, 2012 | December 31, 2011 | |||||||||||
Amount | % (1) | Amount | % (1) | ||||||||||
Commercial: | |||||||||||||
Mortgages | $8,945 | 30 | % | $8,195 | 29 | % | |||||||
Construction and development | 164 | 1 | 95 | 1 | |||||||||
Other | 6,239 | 23 | 6,200 | 22 | |||||||||
Residential real estate: | |||||||||||||
Mortgage | 4,595 | 31 | 4,575 | 32 | |||||||||
Homeowner construction | 118 | 1 | 119 | 1 | |||||||||
Consumer | 2,381 | 14 | 2,452 | 15 | |||||||||
Unallocated | 8,006 | — | 8,166 | — | |||||||||
Balance at end of period | $30,448 | 100 | % | $29,802 | 100 | % |
(1) | Percentage of loans within the respective category to the total loans outstanding. |
(Dollars in thousands) | Payments Due by Period | ||||||||||||||||||
Total | Less Than 1 Year (1) | 1-3 Years | 4-5 Years | After 5 Years | |||||||||||||||
Contractual Obligations: | |||||||||||||||||||
FHLBB advances (2) | $523,989 | $155,441 | $86,745 | $219,262 | $62,541 | ||||||||||||||
Junior subordinated debentures | 32,991 | — | — | — | 32,991 | ||||||||||||||
Operating lease obligations | 20,706 | 2,261 | 4,320 | 2,920 | 11,205 | ||||||||||||||
Software licensing arrangements | 4,621 | 2,027 | 2,027 | 567 | — | ||||||||||||||
Other borrowings | 481 | 282 | 89 | 105 | 5 | ||||||||||||||
Total contractual obligations | $582,788 | $160,011 | $93,181 | $222,854 | $106,742 |
(1) | Maturities or contractual obligations are considered by management in the administration of liquidity and are routinely refinanced in the ordinary course of business. |
(2) | All FHLBB advances are shown in the period corresponding to their scheduled maturity. Some FHLBB advances are callable at earlier dates. See Note 8 to the Consolidated Financial Statements for additional information. |
(Dollars in thousands) | Amount of Commitment Expiration – Per Period | ||||||||||||||||||
Total | Less Than 1 Year | 1-3 Years | 4-5 Years | After 5 Years | |||||||||||||||
Other Commitments: | |||||||||||||||||||
Commercial loans | $221,163 | $134,790 | $37,559 | $2,042 | $46,772 | ||||||||||||||
Home equity lines | 183,895 | 885 | — | — | 183,010 | ||||||||||||||
Other loans | 33,395 | 26,216 | 1,493 | 5,686 | — | ||||||||||||||
Standby letters of credit | 8,777 | 8,677 | 100 | — | — | ||||||||||||||
Forward loan commitments to: | |||||||||||||||||||
Originate loans | 83,633 | 83,633 | — | — | — | ||||||||||||||
Sell loans | 106,340 | 106,340 | — | — | — | ||||||||||||||
Customer related derivative contracts: | |||||||||||||||||||
Interest rate swaps with customers | 60,958 | 9,457 | 39,006 | 5,832 | 6,663 | ||||||||||||||
Mirror swaps with counterparties | 60,958 | 9,457 | 39,006 | 5,832 | 6,663 | ||||||||||||||
Interest rate risk management contract: | |||||||||||||||||||
Interest rate swap contracts | 32,991 | 10,310 | — | 22,681 | — | ||||||||||||||
Total commitments | $792,110 | $389,765 | $117,164 | $42,073 | $243,108 |
June 30, 2012 | December 31, 2011 | ||||||
Months 1 - 12 | Months 13 - 24 | Months 1 - 12 | Months 13 - 24 | ||||
100 basis point rate decrease | (2.34)% | (7.30)% | (2.29)% | (6.70)% | |||
100 basis point rate increase | 2.10% | 3.68% | 2.06% | 3.25% | |||
200 basis point rate increase | 4.46% | 7.04% | 4.13% | 5.88% | |||
300 basis point rate increase | 5.70% | 7.37% | 5.45% | 6.40% |
(Dollars in thousands) | |||||||
Security Type | Down 100 Basis Points | Up 200 Basis Points | |||||
U.S. government-sponsored enterprise securities (noncallable) | $616 | ($1,188 | ) | ||||
States and political subdivisions | 2,222 | (4,188 | ) | ||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government-sponsored enterprises | 2,159 | (14,313 | ) | ||||
Trust preferred debt and other corporate debt securities | 316 | 770 | |||||
Total change in market value as of June 30, 2012 | $5,313 | ($18,919 | ) | ||||
Total change in market value as of December 31, 2011 | $8,138 | ($21,724 | ) |
Exhibit Number | |
10.1 | 2012 Annual Performance Plan - Filed as Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 001-32991), as filed with the Securities and Exchange Commission on June 20, 2012. (1) (2) |
10.2 | Compensatory agreement with James M. Hagerty, dated June 20, 2012 - Filed as Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 001-32991), as filed with the Securities and Exchange Commission on June 28, 2012. (1) (2) |
31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 – Filed herewith. |
31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 – Filed herewith. |
32.1 | Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 – Furnished herewith. (3) |
101 | The following materials from Washington Trust Bancorp, Inc.'s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Shareholders' Equity, (v) the Consolidated Statements of Cash Flows, and (vi) related notes to these financial statements - Furnished herewith. (4) |
(1) | Not filed herewith. In accordance with Rule 12b-32 promulgated pursuant to the Exchange Act, reference is made to the documents previously filed with the Securities and Exchange Commission, which are incorporated by reference herein. |
(2) | Management contract or compensatory plan or arrangement. |
(3) | These certifications are not “filed” for purposes of Section 18 of the Exchange Act or incorporated by reference into any filing under the Securities Act or the Securities Exchange Act. |
(4) | Pursuant to Rule 406T of Regulation S-T, the XBRL related information in Exhibit 101 to this Quarterly Report on Form 10-Q is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934. |
WASHINGTON TRUST BANCORP, INC. | ||||
(Registrant) | ||||
Date: | August 7, 2012 | By: | /s/ Joseph J. MarcAurele | |
Joseph J. MarcAurele | ||||
Chairman, President and Chief Executive Officer | ||||
(principal executive officer) | ||||
Date: | August 7, 2012 | By: | /s/ David V. Devault | |
David V. Devault | ||||
Senior Executive Vice President, Secretary and Chief Financial Officer | ||||
(principal financial and accounting officer) |
Exhibit Number | |
10.1 | 2012 Annual Performance Plan - Filed as Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 001-32991), as filed with the Securities and Exchange Commission on June 20, 2012. (1) (2) |
10.2 | Compensatory agreement with James M. Hagerty, dated June 20, 2012 - Filed as Exhibit 10.1 to the Registrant's Current Report on Form 8-K (File No. 001-32991), as filed with the Securities and Exchange Commission on June 28, 2012. (1) (2) |
31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 – Filed herewith. |
31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 – Filed herewith. |
32.1 | Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 – Furnished herewith. (3) |
101 | The following materials from Washington Trust Bancorp, Inc.'s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Shareholders' Equity, (v) the Consolidated Statements of Cash Flows, and (vi) related notes to these financial statements - Furnished herewith. (4) |
(1) | Not filed herewith. In accordance with Rule 12b-32 promulgated pursuant to the Exchange Act, reference is made to the documents previously filed with the Securities and Exchange Commission, which are incorporated by reference herein. |
(2) | Management contract or compensatory plan or arrangement. |
(3) | These certifications are not “filed” for purposes of Section 18 of the Exchange Act or incorporated by reference into any filing under the Securities Act or the Securities Exchange Act. |
(4) | Pursuant to Rule 406T of Regulation S-T, the XBRL related information in Exhibit 101 to this Quarterly Report on Form 10-Q is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934. |
1. | I have reviewed this report on Form 10-Q, for the quarterly period ended June 30, 2012, of Washington Trust Bancorp, Inc. (the “Registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
4. | The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors: |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
Date: | August 7, 2012 | By: | /s/ Joseph J. MarcAurele | |
Joseph J. MarcAurele | ||||
Chairman, President and Chief Executive Officer | ||||
(principal executive officer) |
1. | I have reviewed this report on Form 10-Q, for the quarterly period ended June 30, 2012, of Washington Trust Bancorp, Inc. (the “Registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; |
4. | The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s board of directors: |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
Date: | August 7, 2012 | By: | /s/ David V. Devault | |
David V. Devault | ||||
Senior Executive Vice President, Secretary and Chief Financial Officer | ||||
(principal financial and accounting officer) |
Date: | August 7, 2012 | By: | /s/ Joseph J. MarcAurele | |
Joseph J. MarcAurele | ||||
Chairman, President and Chief Executive Officer | ||||
(principal executive officer) |
Date: | August 7, 2012 | By: | /s/ David V. Devault | |
David V. Devault | ||||
Senior Executive Vice President, Secretary and Chief Financial Officer | ||||
(principal financial and accounting officer) |
Borrowings (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Federal Home Loan Bank, Advances, Maturities Summary [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Bank Advances Maturity Summary | The following table presents maturities of and weighted average interest rates paid on FHLBB advances outstanding at June 30, 2012.
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Commitments and Contingencies (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments with Off Balance Sheet Risk | The contractual and notional amounts of financial instruments with off-balance sheet risk are as follows:
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Schedule of Future Minimum Operating Lease Payments | At June 30, 2012, the minimum annual lease payments under the terms of these leases, exclusive of renewal provisions, are as follows:
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Borrowings (Federal Home Loan Bank Advances Maturity Schedule) (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
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Federal Home Loan Bank, Advances, Maturities Summary [Abstract] | ||||||
Federal Home Loan Bank advances maturities July 1, 2012 through December 31, 2012 | $ 137,252 | |||||
Federal Home Loan Bank advances assuming redemption at call date maturities July 1, 2012 through December 31, 2012 | 142,252 | [1] | ||||
Federal Home Loan Bank advances weighted average rate maturities July 1, 2012 through December 31, 2012 | 1.09% | [2] | ||||
Federal Home Loan Bank advances maturities in 2013 | 39,229 | |||||
Federal Home Loan Bank advances assuming redemption at call date maturities in 2013 | 34,229 | [1] | ||||
Federal Home Loan Bank advances weighted average rate maturities in 2013 | 3.37% | [2] | ||||
Federal Home Loan Bank advances maturities in 2014 | 32,129 | |||||
Federal Home Loan Bank advances assuming redemption at call date maturities in 2014 | 32,129 | [1] | ||||
Federal Home Loan Bank advances weighted average rate maturities in 2014 | 3.19% | [2] | ||||
Federal Home Loan Bank advances maturities in 2015 | 112,682 | |||||
Federal Home Loan Bank advances assuming redemption at call date maturities in 2015 | 112,682 | [1] | ||||
Federal Home Loan Bank advances weighted average rate maturities in 2015 | 3.49% | [2] | ||||
Federal Home Loan Bank advances maturities in 2016 | 96,587 | |||||
Federal Home Loan Bank advances assuming redemption at call date maturities in 2016 | 96,587 | [1] | ||||
Federal Home Loan Bank advances weighted average rate maturities in 2016 | 3.61% | [2] | ||||
Federal Home Loan Bank advances maturities in 2017 and after | 106,110 | |||||
Federal Home Loan Bank advances assuming redemption at call date maturities in 2017 and after | 106,110 | [1] | ||||
Federal Home Loan Bank advances weighted average rate maturities in 2017 and after | 3.80% | [2] | ||||
Federal Home Loan Bank advances maturities summary | 523,989 | |||||
Federal Home Loan Bank advances assuming redemption at call date maturities summary | $ 523,989 | [1] | ||||
|
Loans (Narrative) (Details) (USD $)
|
Aug. 03, 2012
|
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|---|
Financing Receivable, Modifications [Line Items] | |||
Weighted Average Risk Rating, Commercial Loans | 4.80 | 4.87 | |
Financing Receivable, Modifications, Recorded Investment | $ 13,300,000 | $ 19,700,000 | |
Accrued Interest | 16,000 | 46,000 | |
Related Allowance on Loans Individually Evaluated for Impairment | 1,311,000 | 1,815,000 | |
Loan Receivable, Troubled Debt Restructurings [Member]
|
|||
Financing Receivable, Modifications [Line Items] | |||
Related Allowance on Loans Individually Evaluated for Impairment | $ 802,000 | $ 858,000 |
Fair Value Measurements (Fair Value Mortgage Loans Held For Sale, Commitments to Originate And Commitments to Sell Changes in Fair Value Disclosures) (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Fair Value Disclosures [Abstract] | ||||
Mortgage loans held for sale | $ 338 | $ 0 | $ 106 | $ 0 |
Commitments to originate | 1,248 | (53) | 1,199 | 33 |
Commitments to sell | (1,586) | 42 | (1,305) | (506) |
Total change in fair value | $ 0 | $ (11) | $ 0 | $ (473) |
Other Comprehensive Income (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
|
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Statement of Income and Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity in Other Comprehensive Income | The following table presents the activity in other comprehensive income (loss) during the three months ended June 30, 2012 and 2011:
The following table presents the activity in other comprehensive income (loss) during the six months ended June 30, 2012 and 2011:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accumulated Other Comprehensive Income | The following table presents the components of accumulated other comprehensive income as of the dates indicated:
|
Earnings Per Common Share (Policies)
|
6 Months Ended |
---|---|
Jun. 30, 2012
|
|
Earnings Per Share [Abstract] | |
Earnings Per Share Policy | Washington Trust utilizes the two-class method earnings allocation formula to determine earnings per share of each class of stock according to dividends and participation rights in undistributed earnings. Share-based payments that entitle holders to receive non-forfeitable dividends before vesting are considered participating securities and included in earnings allocation for computing basic earnings per share under this method. Undistributed income is allocated to common shareholders and participating securities under the two-class method based upon the proportion of each to the total weighted average shares available. |
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) (Recurring [Member], USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
||||
---|---|---|---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Mortgage loans held for sale | $ 23,530 | $ 20,340 | ||||
Total assets at fair value on a recurring basis | 499,991 | 567,970 | [1] | |||
Total liabilities at fair value on a recurring basis | 10,023 | 9,051 | [1] | |||
Interest rate swaps with customers [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Asset Derivatives | 4,225 | 4,513 | [1] | |||
Derivative liabilities | 4,357 | 4,669 | [1] | |||
Interest rate swap contracts [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative liabilities | 1,775 | 1,802 | [1] | |||
Forward loan commitments [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Asset Derivatives | 3,069 | 1,864 | [1] | |||
Derivative liabilities | 3,891 | 2,580 | [1] | |||
Obligations of U.S. government-sponsored enterprises [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 32,319 | 32,833 | ||||
Mortgage-backed securities issued by U.S. government-sponsored agencies and U.S. government-sponsored enterprises [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 324,292 | 389,658 | ||||
States and political subdivisions [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 73,723 | 79,493 | ||||
Trust preferred securities: Individual name issuers [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 23,620 | 22,396 | ||||
Trust preferred securities: Collateralized debt obligations [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 767 | 887 | ||||
Corporate bonds [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 14,446 | 14,282 | ||||
Perpetual preferred stock [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 1,704 | |||||
Level 1 [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Mortgage loans held for sale | ||||||
Total assets at fair value on a recurring basis | 1,704 | |||||
Total liabilities at fair value on a recurring basis | ||||||
Level 1 [Member] | Interest rate swaps with customers [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Asset Derivatives | ||||||
Derivative liabilities | ||||||
Level 1 [Member] | Interest rate swap contracts [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative liabilities | ||||||
Level 1 [Member] | Forward loan commitments [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Asset Derivatives | ||||||
Derivative liabilities | ||||||
Level 1 [Member] | Obligations of U.S. government-sponsored enterprises [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | ||||||
Level 1 [Member] | Mortgage-backed securities issued by U.S. government-sponsored agencies and U.S. government-sponsored enterprises [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | ||||||
Level 1 [Member] | States and political subdivisions [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | ||||||
Level 1 [Member] | Trust preferred securities: Individual name issuers [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | ||||||
Level 1 [Member] | Trust preferred securities: Collateralized debt obligations [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | ||||||
Level 1 [Member] | Corporate bonds [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | ||||||
Level 1 [Member] | Perpetual preferred stock [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 1,704 | |||||
Level 2 [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Mortgage loans held for sale | 23,530 | 20,340 | ||||
Total assets at fair value on a recurring basis | 499,224 | 565,379 | [1] | |||
Total liabilities at fair value on a recurring basis | 10,023 | 9,051 | [1] | |||
Level 2 [Member] | Interest rate swaps with customers [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Asset Derivatives | 4,225 | [1] | 4,513 | [1] | ||
Derivative liabilities | 4,357 | [1] | 4,669 | [1] | ||
Level 2 [Member] | Interest rate swap contracts [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative liabilities | 1,775 | [1] | 1,802 | [1] | ||
Level 2 [Member] | Forward loan commitments [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Asset Derivatives | 3,069 | [1] | 1,864 | [1] | ||
Derivative liabilities | 3,891 | [1] | 2,580 | [1] | ||
Level 2 [Member] | Obligations of U.S. government-sponsored enterprises [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 32,319 | 32,833 | ||||
Level 2 [Member] | Mortgage-backed securities issued by U.S. government-sponsored agencies and U.S. government-sponsored enterprises [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 324,292 | 389,658 | ||||
Level 2 [Member] | States and political subdivisions [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 73,723 | 79,493 | ||||
Level 2 [Member] | Trust preferred securities: Individual name issuers [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 23,620 | 22,396 | ||||
Level 2 [Member] | Trust preferred securities: Collateralized debt obligations [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | ||||||
Level 2 [Member] | Corporate bonds [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 14,446 | 14,282 | ||||
Level 2 [Member] | Perpetual preferred stock [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | ||||||
Level 3 [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Mortgage loans held for sale | ||||||
Total assets at fair value on a recurring basis | 767 | 887 | ||||
Total liabilities at fair value on a recurring basis | ||||||
Level 3 [Member] | Interest rate swaps with customers [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Asset Derivatives | ||||||
Derivative liabilities | ||||||
Level 3 [Member] | Interest rate swap contracts [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative liabilities | ||||||
Level 3 [Member] | Forward loan commitments [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Asset Derivatives | ||||||
Derivative liabilities | ||||||
Level 3 [Member] | Obligations of U.S. government-sponsored enterprises [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | ||||||
Level 3 [Member] | Mortgage-backed securities issued by U.S. government-sponsored agencies and U.S. government-sponsored enterprises [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | ||||||
Level 3 [Member] | States and political subdivisions [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | ||||||
Level 3 [Member] | Trust preferred securities: Individual name issuers [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | ||||||
Level 3 [Member] | Trust preferred securities: Collateralized debt obligations [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | 767 | 887 | ||||
Level 3 [Member] | Corporate bonds [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | ||||||
Level 3 [Member] | Perpetual preferred stock [Member]
|
||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Securities available for sale | ||||||
|
Derivative Financial Instruments (Fair Value of Derivatives by Balance Sheet Location) (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Other assets [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 7,294 | $ 6,377 |
Other liabilities [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 10,023 | 9,051 |
Interest rate swap contracts [Member] | Derivatives Designated as Cash Flow Hedging Instruments [Member] | Other assets [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | ||
Interest rate swap contracts [Member] | Derivatives Designated as Cash Flow Hedging Instruments [Member] | Other liabilities [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 1,775 | 1,802 |
Commitments to originate fixed rate mortgage loans to be sold [Member] | Derivatives not Designated as Hedging Instruments [Member] | Other assets [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 3,065 | 1,864 |
Commitments to originate fixed rate mortgage loans to be sold [Member] | Derivatives not Designated as Hedging Instruments [Member] | Other liabilities [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 2 | |
Commitments to sell fixed rate mortgage loans [Member] | Derivatives not Designated as Hedging Instruments [Member] | Other assets [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 4 | |
Commitments to sell fixed rate mortgage loans [Member] | Derivatives not Designated as Hedging Instruments [Member] | Other liabilities [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 3,889 | 2,580 |
Interest rate swaps with customers [Member] | Derivatives not Designated as Hedging Instruments [Member] | Other assets [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 4,225 | 4,513 |
Interest rate swaps with customers [Member] | Derivatives not Designated as Hedging Instruments [Member] | Other liabilities [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | ||
Mirror swaps with counterparties [Member] | Derivatives not Designated as Hedging Instruments [Member] | Other assets [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | ||
Mirror swaps with counterparties [Member] | Derivatives not Designated as Hedging Instruments [Member] | Other liabilities [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ 4,357 | $ 4,669 |
Share-Based Compensation Arrangements (Share Options Fair Value Assumptions) (Details) (Share Options [Member])
|
6 Months Ended | |
---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Share Options [Member]
|
||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (years) | 9.0 | 9.0 |
Expected dividend yield | 3.45% | 3.33% |
Weighted average expected volatility | 42.97% | 41.90% |
Weighted average risk-free interest rate | 1.53% | 3.05% |
Loans (Nonaccrual Loans) (Details) (USD $)
|
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 15,742,000 | $ 21,237,000 |
Accruing loans 90 days or more past due | 0 | 0 |
Current loans on nonaccrual status | 3,000,000 | 3,600,000 |
Commercial Mortgages [Member]
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 2,597,000 | 5,709,000 |
Commercial Construction and Development [Member]
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 0 | 0 |
Commercial Other [Member]
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 3,405,000 | 3,708,000 |
Residential Mortgage [Member]
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 8,659,000 | 10,614,000 |
Homeowner Construction [Member]
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 0 | 0 |
Home Equity Lines [Member]
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 695,000 | 718,000 |
Home Equity Loans [Member]
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 371,000 | 335,000 |
Other Consumer [Member]
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 15,000 | $ 153,000 |
Fair Value Measurements (Narrative) (Details) (Nonrecurring [Member], Level 3 [Member], USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Nonrecurring [Member] | Level 3 [Member]
|
||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Valuation adjustments charged to allowance on property acquired through foreclosure or repossession | $ 268 | $ 124 | $ 332 | $ 124 |
Valuation adjustments charged to earnings on property acquired through foreclosure or repossession | $ 52 | $ 238 | $ 171 | $ 238 |
Defined Benefit Pension Plans (Components of Net Periodic Benefit Cost) (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
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Qualified Pension Plan [Member]
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Defined Benefit Plan Disclosure [Line Items] | ||||
Service Cost | $ 643 | $ 578 | $ 1,287 | $ 1,157 |
Interest Cost | 706 | 644 | 1,412 | 1,289 |
Expected Return on Plan Assets | (747) | (698) | (1,493) | (1,397) |
Amortization of Prior Service Cost | (9) | (9) | (17) | (17) |
Recognized Net Actuarial Loss | 247 | 99 | 491 | 196 |
Net Periodic Benefit Cost | 840 | 614 | 1,680 | 1,228 |
Non-Qualified Retirement Plans [Member]
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Defined Benefit Plan Disclosure [Line Items] | ||||
Service Cost | 37 | 18 | 75 | 36 |
Interest Cost | 126 | 124 | 252 | 248 |
Expected Return on Plan Assets | 0 | 0 | 0 | 0 |
Amortization of Prior Service Cost | 0 | 0 | 0 | 0 |
Recognized Net Actuarial Loss | 30 | 3 | 59 | 6 |
Net Periodic Benefit Cost | $ 193 | $ 145 | $ 386 | $ 290 |
Fair Value Measurements (Quantitative Information About Level 3 Assets Measured at Fair Value on a Recurring Basis) (Details) (Recurring [Member], Discounted Cash Flow [Member], Level 3 [Member], Trust preferred securities: Collateralized debt obligations [Member], USD $)
In Thousands, unless otherwise specified |
6 Months Ended |
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Jun. 30, 2012
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Fair Value Inputs Assets Quantitative Information [Line Items] | |
Trust preferred securities: Collateralized debt obligations | 767 |
Range of Inputs: Minimum [Member]
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Fair Value Inputs Assets Quantitative Information [Line Items] | |
Discount Rate | 17.50% |
Cummulative Default Percentage | 5.20% |
Loss Given Default Percentage | 85.00% |
Range of Inputs: Maximum [Member]
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Fair Value Inputs Assets Quantitative Information [Line Items] | |
Discount Rate | 17.50% |
Cummulative Default Percentage | 100.00% |
Loss Given Default Percentage | 100.00% |
Weighted Average [Member]
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Fair Value Inputs Assets Quantitative Information [Line Items] | |
Discount Rate | 17.50% |
Cummulative Default Percentage | 27.10% |
Loss Given Default Percentage | 90.90% |
Share-Based Compensation Arrangements (Narrative) (Details) (USD $)
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6 Months Ended | |
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Jun. 30, 2012
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Jun. 30, 2011
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share Options Exercised Total Intrinsic Value | $ 528,000 | $ 359,000 |
Unrecognized Compensation Cost | 4,200,000 | |
Weighted Average Recognition Period (in years) | 2.3 | |
Share Options [Member]
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award Vesting Period | 3 years | 3 years |
Share Options Granted Weighted Average Grant Date Fair Value | $ 7.44 | $ 7.46 |
Time Based Nonvested Shares [Member]
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Minimum Award Vesting Period | 3 | 1 |
Maximum Award Vesting Period | 5 | 3 |
Performance Based Nonvested Shares [Member]
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award Vesting Period | 3 years | 3 years |
Equity Instruments Other than Options Granted Grant Date Fair Value | $ 23.65 | $ 21.62 |
Equity Instruments Other than Options Minimum Shares Earned to Target Percentage | 0.00% | 0.00% |
Equity Instruments Other than Options Maximum Shares Earned to Target Percentage | 200.00% | 200.00% |
Equity Instruments Other than Options Minimum Shares Earned | 0 | 0 |
Equity Instruments Other than Options Maximum Shares Earned | 61,600 | 65,954 |
Equity Instruments Other than Options Shares Vesting Percentage | 157.00% | 154.00% |
Equity Instruments Other than Options Shares Vesting | 48,356 | 50,784 |
Fair Value Measurements (Fair Value Mortgage Loans Held For Sale, Commitments to Originate And Commitments to Sell Disclosures) (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
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Dec. 31, 2011
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Mortgage Loans Held for Sale, Commitments to Originate And Commitments To Sell [Line Items] | ||||||
Mortgage loans held for sale | $ 23,530 | $ 20,340 | ||||
Mortgage loans held for sale difference between fair value and principal amount | 822 | |||||
Notional or Principal Amount [Member]
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Mortgage Loans Held for Sale, Commitments to Originate And Commitments To Sell [Line Items] | ||||||
Mortgage loans held for sale | 22,708 | [1] | 19,624 | [1] | ||
Commitments to originate | 83,633 | 56,950 | ||||
Commitments to sell | 106,340 | 76,574 | ||||
Fair Value [Member]
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Mortgage Loans Held for Sale, Commitments to Originate And Commitments To Sell [Line Items] | ||||||
Mortgage loans held for sale | 23,530 | [1] | 20,340 | [1] | ||
Commitments to originate | 3,063 | 1,864 | ||||
Commitments to sell | $ (3,885) | $ (2,580) | ||||
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Shareholders' Equity (Regulatory Captial Requirements) (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
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Dec. 31, 2011
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Corporation [Member]
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Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Total Capital | $ 292,179 | $ 279,751 | ||||
Total Capital to Risk-Weighted Assets | 13.15% | 12.86% | ||||
Total Capital for Capital Adequacy Purposes | 177,736 | 174,073 | ||||
Total Capital for Capital Adequacy Purposes to Risk-Weighted Assets | 8.00% | 8.00% | ||||
Total Capital To Be Well Capitalized | 222,171 | 217,592 | ||||
Total Capital To Be Well Capitalized to Risk Weighted-Assets | 10.00% | 10.00% | ||||
Tier 1 Capital | 264,372 | 252,516 | ||||
Tier 1 Capital to Risk Weighted-Assets | 11.90% | 11.61% | ||||
Tier 1 Capital Required For Capital Adequacy Purposes | 88,868 | 87,037 | ||||
Tier 1 Capital Required for Capital Adequacy Purposes to Risk Weighted-Assets | 4.00% | 4.00% | ||||
Tier 1 Capital Required To Be Well Capitalized | 133,302 | 130,555 | ||||
Tier 1 Capital Required To Be Well Capitalized to Risk Weighted-Assets | 6.00% | 6.00% | ||||
Tier 1 Leverage Capital | 264,372 | [1] | 252,516 | [1] | ||
Tier 1 Leverage Capital to Average Assets | 9.00% | [1] | 8.70% | [1] | ||
Tier 1 Leverage Capital Required for Capital Adequacy Purposes | 117,480 | [1] | 116,158 | [1] | ||
Tier 1 Leverage Capital Required for Capital Adequacy Purposes to Average Assets | 4.00% | [1] | 4.00% | [1] | ||
Tier 1 Leverage Capital Required To Be Well Capitalized | 146,850 | [1] | 145,198 | [1] | ||
Tier 1 Leverage Capital Required To Be Well Capitalized to Average Assets | 5.00% | [1] | 5.00% | [1] | ||
Bank [Member]
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Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Total Capital | 287,344 | 275,183 | ||||
Total Capital to Risk-Weighted Assets | 12.95% | 12.66% | ||||
Total Capital for Capital Adequacy Purposes | 177,517 | 173,845 | ||||
Total Capital for Capital Adequacy Purposes to Risk-Weighted Assets | 8.00% | 8.00% | ||||
Total Capital To Be Well Capitalized | 221,896 | 217,307 | ||||
Total Capital To Be Well Capitalized to Risk Weighted-Assets | 10.00% | 10.00% | ||||
Tier 1 Capital | 259,571 | 247,983 | ||||
Tier 1 Capital to Risk Weighted-Assets | 11.70% | 11.41% | ||||
Tier 1 Capital Required For Capital Adequacy Purposes | 88,758 | 86,923 | ||||
Tier 1 Capital Required for Capital Adequacy Purposes to Risk Weighted-Assets | 4.00% | 4.00% | ||||
Tier 1 Capital Required To Be Well Capitalized | 133,137 | 130,384 | ||||
Tier 1 Capital Required To Be Well Capitalized to Risk Weighted-Assets | 6.00% | 6.00% | ||||
Tier 1 Leverage Capital | 259,571 | [1] | 247,983 | [1] | ||
Tier 1 Leverage Capital to Average Assets | 8.85% | [1] | 8.55% | [1] | ||
Tier 1 Leverage Capital Required for Capital Adequacy Purposes | 117,284 | [1] | 115,961 | [1] | ||
Tier 1 Leverage Capital Required for Capital Adequacy Purposes to Average Assets | 4.00% | [1] | 4.00% | [1] | ||
Tier 1 Leverage Capital Required To Be Well Capitalized | $ 146,605 | [1] | $ 144,952 | [1] | ||
Tier 1 Leverage Capital Required To Be Well Capitalized to Average Assets | 5.00% | [1] | 5.00% | [1] | ||
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General Information (Policies)
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6 Months Ended |
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Jun. 30, 2012
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation Policy | The consolidated financial statements include the accounts of the Bancorp and its subsidiaries (collectively, the “Corporation” or “Washington Trust”). All significant intercompany transactions have been eliminated. Certain prior year amounts have been reclassified to conform to the current year classification. Such reclassifications have no effect on previously reported net income or shareholders’ equity. |
Use of Estimates Policy | The accounting and reporting policies of the Corporation conform to accounting principles generally accepted in the United States of America (“GAAP”) and to general practices of the banking industry. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to change are the determination of the allowance for loan losses and the review of goodwill, other intangible assets and investments for impairment. The current economic environment has increased the degree of uncertainty inherent in such estimates and assumptions. |
Securities (Narrative) (Details) (USD $)
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6 Months Ended | |
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Jun. 30, 2012
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Dec. 31, 2011
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Investments, Debt and Equity Securities [Abstract] | ||
Fair Value of Available for Sale and Held to Maturity securities pledged as collateral | $ 469,100,000 | $ 558,200,000 |
Amortized cost of trust preferred securities of individual name issuers that are below investment grade | 11,800,000 | |
Unrealized losses of trust preferred securities of individual name issuers that are below investment grade | 2,500,000 | |
Amortized cost of the first trust preferred security of pooled issuers on nonaccrual status | 2,800,000 | |
Total credit-related impairment losses of the first trust preferred security of pooled issuers on nonaccrual status | 2,100,000 | |
Current credit-related impairment losses of the first trust preferred security on nonaccrual status | 209,000 | |
Unrealized losses of the first trust preferred security of pooled issuers on nonaccrual status | 2,200,000 | |
Amortized cost of the second trust preferred security of pooled issuers on nonaccrual status | 1,300,000 | |
Total credit-related impairment losses of the second trust preferred security of pooled issuers on nonaccrual status | 1,200,000 | |
Unrealized losses of the second trust preferred security of pooled issuers on nonaccrual status | 1,100,000 | |
Amortized cost of callable debt securities | 91,900,000 | |
Fair value of callable debt securities | $ 85,400,000 |
Fair Value Measurements (Tables)
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Jun. 30, 2012
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Mortgage Loans Held For Sale, Commitments to Originate and Commitments to Sell Disclosures | The following table summarizes information related to mortgage loans held for sale, commitments to originate fixed-rate mortgage loans to be sold and commitments to sell fixed-rate mortgage loans.
The following table presents the changes in fair value related to mortgage loans held for sale, commitments to originate fixed-rate mortgage loans to be sold and commitments to sell fixed-rate mortgage loans for the periods indicated. Changes in fair values are reported as a component of net gains on loan sales and commissions on loans originated for others in the Consolidated Statements of Income.
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Assets and Liabilities Measured at Fair Value on a Recurring Basis | Items Recorded at Fair Value on a Recurring Basis The tables below present the balances of assets and liabilities reported at fair value on a recurring basis:
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Schedule of Changes in Level Three Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the changes in Level 3 assets and liabilities measured at fair value on a recurring basis during the periods indicated:
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Quantitative Information About Level 3 Assets Measured at Fair Value on a Recurring Basis | The following table presents additional quantitative information about assets measured at fair value on a recurring basis for which the Corporation has utilized Level 3 inputs to determine fair value.
Given the low level of market activity for trust preferred securities in the form of collateralized debt obligations, the discount rate utilized in the fair value measurement was derived by analyzing current market yields for trust preferred securities of individual name issuers in the financial services industry. Adjustments were then made for credit and structural differences between these types of securities. There is an inverse correlation between the discount rate and the fair value measurement. When the discount rate increases, the fair value decreases. Other significant unobservable inputs to the fair value measurement of collateralized debt obligations included prospective defaults and recoveries. The cumulative default percentage represents the lifetime defaults assumed, excluding currently defaulted collateral and including all performing and currently deferring collateral. As a result, the cumulative default percentage also reflects assumptions of the possibility of currently deferring collateral curing and becoming current. The loss given default percentage represents the percentage of current and projected defaults assumed to be lost. There is an inverse correlation between the cumulative default and loss given default percentages and the fair value measurement. When the default percentages increase, the fair value decreases. |
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Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | Items Recorded at Fair Value on a Nonrecurring Basis Certain assets are measured at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or market accounting or write-downs of individual assets. The valuation methodologies used to measure these fair value adjustments are described above. The following table presents the carrying value of certain assets measured at fair value on a nonrecurring basis during the six months ended June 30, 2012:
Collateral dependent impaired loans with a carrying value of $2.8 million at June 30, 2012 were subject to nonrecurring fair value measurement during the six months ended June 30, 2012. As of June 30, 2012, the allowance for loan losses allocation on these loans amounted to $733 thousand. During the six months ended June 30, 2012, properties acquired through foreclosures or repossession with a fair value of $1.8 million were transferred from loans. Prior to the transfer, the assets whose fair value less costs to sell was less than the carrying value were written down to fair value through a charge to the allowance for loan losses. For the three and six months ended June 30, 2012, such valuation adjustments charged to the allowance for loan losses amounted to $268 thousand and $332 thousand, respectively. Subsequent to foreclosures, valuations are updated periodically and assets may be marked down further, reflecting a new cost basis. Subsequent valuation adjustments charged to earnings totaled $52 thousand and $171 thousand for the three and six months ended June 30, 2012, respectively. The following table presents the carrying value of certain assets measured at fair value on a nonrecurring basis during the six months ended June 30, 2011:
Collateral dependent impaired loans with a carrying value of $3.3 million at June 30, 2011 were subject to nonrecurring fair value measurement during the six months ended June 30, 2011. As of June 30, 2011, the allowance for loan losses allocation on these loans amounted to $900 thousand. During the six months ended June 30, 2011, properties acquired through foreclosures or repossession with a fair value of $801 thousand were transferred from loans. Prior to the transfer, the assets whose fair value less costs to sell was less than the carrying value were written down to fair value through a charge to the allowance for loan losses. For the three and six months ended June 30, 2011, such valuation adjustments charged to the allowance for loan losses amounted to $124 thousand. Subsequent to foreclosures, valuations are updated periodically and assets may be marked down further, reflecting a new cost basis. Subsequent valuation adjustments charged to earnings totaled $238 thousand for the three and six months ended June 30, 2011. |
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Quantitative Information About Level 3 Assets Measured at Fair Value on a Nonrecurring Basis | The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Corporation has utilized Level 3 inputs to determine fair value.
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Carrying Amounts and Estimated Fair Values of Financial Instruments | The following tables present the carrying amount, estimated fair value and placement in the fair value hierarchy of the Corporation's financial instruments as of June 30, 2012 and December 31, 2011. The tables exclude financial instruments for which the carrying value approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, FHLBB stock, accrued interest receivable and bank-owned life insurance. Financial liabilities for which the fair value approximates carrying value include non-maturity deposits, other borrowings and accrued interest payable.
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Derivative Financial Instruments (Derivatives not Designated as Hedging Instruments, Effect in Statements of Income) (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2012
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Jun. 30, 2011
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Jun. 30, 2012
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Jun. 30, 2011
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Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income | $ 0 | $ 0 | $ 0 | $ 0 |
Derivatives not Designated as Hedging Instruments [Member]
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Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income | (341) | (46) | (82) | (432) |
Commitments to originate fixed rate mortgage loans to be sold [Member] | Net gains on loan sales and commissions on loans originated for others [Member] | Derivatives not Designated as Hedging Instruments [Member]
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Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income | 1,248 | (53) | 1,199 | 33 |
Commitments to sell fixed rate mortgage loans [Member] | Net gains on loan sales and commissions on loans originated for others [Member] | Derivatives not Designated as Hedging Instruments [Member]
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Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income | (1,586) | 42 | (1,305) | (506) |
Interest rate swaps with customers [Member] | Net gains (losses) on interest rate swaps [Member] | Derivatives not Designated as Hedging Instruments [Member]
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Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income | 398 | 1,214 | 609 | 1,118 |
Mirror swaps with counterparties [Member] | Net gains (losses) on interest rate swaps [Member] | Derivatives not Designated as Hedging Instruments [Member]
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Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in Income | $ (401) | $ (1,249) | $ (585) | $ (1,077) |
Commitments and Contingencies (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2012
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Jun. 30, 2011
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Jun. 30, 2012
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Jun. 30, 2011
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Dec. 31, 2011
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Commitments and Contingencies Disclosure [Abstract] | |||||
Fee income on standby letters of credit | $ 28 | $ 33 | $ 55 | $ 97 | |
Operating leases rental expense | 770 | 429 | 1,422 | 850 | |
Unpaid principal balance of loans repurchased | $ 628 | $ 628 | $ 773 |
Allowance for Loan Losses (Tables)
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Jun. 30, 2012
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses Rollforward Analysis | The following is an analysis of activity in the allowance for loan losses for the three months ended June 30, 2012:
The following is an analysis of activity in the allowance for loan losses for the three months ended June 30, 2011:
The following is an analysis of activity in the allowance for loan losses for the six months ended June 30, 2012:
The following is an analysis of activity in the allowance for loan losses for the six months ended June 30, 2011:
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Schedule of Allowance for Loan Loss by Segent & Impairment Methodology | The following table presents the Corporation’s loan portfolio and associated allowance for loan loss by portfolio segment and disaggregated on the basis of the Corporation’s impairment methodology.
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Securities (Rollfoward of OTTI Recognized in Earnings) (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
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Jun. 30, 2011
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Jun. 30, 2012
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Jun. 30, 2011
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Investments, Debt and Equity Securities [Abstract] | ||||
Credit related impairment losses on debt securities, beginning balance | $ 3,313 | $ 2,946 | $ 3,104 | $ 2,913 |
Credit-related impairment losses on debt securities for which other-than-temporary impairment was not previously recognized | 0 | 0 | 0 | 0 |
Additional increases to the amount of credit-related impairment loss on debt securities for which other-than-temporary impairment was previously recognized | 0 | 0 | 209 | 33 |
Credit related impairment losses on debt securities, ending balance | $ 3,313 | $ 2,946 | $ 3,313 | $ 2,946 |
Time Certificates of Deposit (Schedule of Time Certifcates of Deposit Maturities) (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
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Dec. 31, 2011
|
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Deposits [Abstract] | ||
Time deposits amounts scheduled to mature July 1, 2012 through December 31, 2012 | $ 355,866 | |
Time deposits weighted average rate for maturities July 1, 2012 to December 31, 2012 | 0.58% | |
Time deposits amounts scheduled to mature in 2013 | 225,934 | |
Time deposits weighted average rate for maturities in 2013 | 1.54% | |
Time deposits amounts scheduled to mature in 2014 | 136,114 | |
Time deposits weighted average rate for maturities in 2014 | 1.90% | |
Time deposits amounts scheduled to mature in 2015 | 86,170 | |
Time deposits weighted average rate for maturities in 2015 | 2.63% | |
Time deposits amounts scheduled to mature in 2016 | 69,109 | |
Time deposits weighted average rate for maturities in 2016 | 1.82% | |
Time deposits amounts schedule to mature in 2017 and after | 19,190 | |
Time deposits weighted average rate for maturities in 2017 and after | 1.77% | |
Time deposits | $ 892,383 | $ 878,794 |
Loans (Troubled Debt Restructurings Type of Modification) (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
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Jun. 30, 2011
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Jun. 30, 2012
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Jun. 30, 2011
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Financing Receivable, Modifications [Line Items] | ||||||||||
Payment Deferral | $ 240 | $ 988 | $ 240 | $ 1,926 | ||||||
Maturity/Amortization Concession | 24 | 0 | 917 | 667 | ||||||
Interest Only Payments | 0 | 0 | 361 | 15 | ||||||
Below Market Interest Rate Concession | 761 | 0 | 1,426 | 0 | ||||||
Combination | 198 | [1] | 0 | [1] | 198 | [1] | 326 | [1] | ||
Recorded Investment Amount of Loans Modified | $ 1,223 | $ 988 | $ 3,142 | $ 2,934 | ||||||
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Earnings Per Common Share (Tables)
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Jun. 30, 2012
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of Earnings Per Share | The calculation of earnings per common share is presented below.
Weighted average common stock equivalents, not included in common stock equivalents above because they were anti-dilutive, totaled 394 thousand and 349 thousand, respectively, for the three months ended June 30, 2012 and 2011. These amounts totaled 393 thousand and 374 thousand, respectively, for the six months ended June 30, 2012 and 2011. |
Recently Issued Accounting Pronouncements
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6 Months Ended |
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Jun. 30, 2012
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New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Fair Value Measurement – Topic 820 Accounting Standards Update No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards (“ASU 2011-04”), was issued in May 2011. The amendments in ASU 2011-04 added language to clarify many of the requirements in GAAP for measuring fair value and for disclosing information about fair value measurements, as well as prescribed additional disclosures for Level 3 fair value measurements and financial instruments not carried at fair value. For many of the requirements, the Financial Accounting Standards Board (“FASB”) did not intend for ASU 2011-04 to result in a change in the application of the requirements in GAAP. The amendments required by ASU 2011-04 were to be applied prospectively and were effective for fiscal years and interim periods within those years, beginning after December 15, 2011. The Corporation adopted ASU 2011-04 in the first quarter of 2012, provided the additional disclosures required and made the election to use the exception permitted with respect to measuring counterparty credit risk on our interest rate derivative contracts. See Note 10 to the Consolidated Financial Statements for additional information. The adoption of ASU 2011-04 did not have a material impact on the Corporation’s consolidated financial position, results of operations or cash flows. Comprehensive Income – Topic 220 Accounting Standards Update No. 2011-05, “Presentation of Comprehensive Income” (“ASU 2011-05”), was issued in June 2011. The FASB issued ASU 2011-05 to improve the comparability and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income. ASU 2011-05 eliminates the option to present components of other comprehensive income as part of the statement of changes in stockholders’ equity. ASU 2011-05 requires that all non-owner changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. Accounting Standards Update No. 2011-12, “Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05” (“ASU 2011-12”), was issued in December 2011. ASU 2011-12 deferred the effective date of the requirement to present separate line items on the income statement for reclassification adjustments of items out of accumulated other comprehensive income into net income. No other requirements in ASU 2011-05 were affected by this amendment. The provisions of ASU 2011-05, exclusive of the provisions pertaining to the reclassification adjustments deferred by ASU 2011-12, were to be applied retrospectively and were effective for fiscal years and interim periods within those years, beginning after December 15, 2011. The Corporation adopted these provisions of ASU 2011-05 in the first quarter of 2012 and elected to present comprehensive income in a separate financial statement, the Consolidated Statements of Comprehensive Income. The adoption of these provisions of ASU 2011-05 did not have a material impact on the Corporation’s consolidated financial position, results of operations or cash flows. Intangibles-Goodwill and Other – Topic 350 Accounting Standards Update No. 2011-08, “Testing for Goodwill Impairment” (“ASU 2011-08”), was issued in September 2011. The objective of ASU 2011-08 was to simplify the testing of goodwill for impairment by allowing entities to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative test. There will no longer be a requirement to calculate the fair value of a reporting unit unless it is determined, based on a qualitative assessment, that it is more-likely-than-not that its fair value is less than its carrying amount. The more-likely-than-not threshold was defined as having a likelihood of more than 50 percent. The provisions of ASU 2011-08 are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The adoption of ASU 2011-08 did not have a material impact on the Corporation’s consolidated financial position, results of operations or cash flows. Balance Sheet - Topic 210 Accounting Standards Update No. 2011-11, “Disclosures about Offsetting Assets and Liabilities” (“ASU 2011-11”), was issued in December 2011 and was intended to enhance current disclosure requirements on offsetting financial assets and liabilities. The requirements in ASU 2011-11 enables users to compare balance sheets prepared under U.S. GAAP and International Financial Reporting Standards (“IFRS”), which are subject to different offsetting models. The requirements affect all entities that have financial instruments that are either offset in the balance sheet or subject to an enforceable master netting arrangement or similar agreement. ASU 2011-11 will be effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The required disclosures shall be provided retrospectively for all comparative periods presented. The adoption of ASU 2011-11 is not expected to have a material impact on the Corporation’s consolidated financial position, results of operations or cash flows. |
Loans (Troubled Debt Restructurings Subsequent Default) (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|||||||
Class of Financing Receivable [Member]
|
||||||||||
Financing Receivable, Modifications [Line Items] | ||||||||||
Number of Loans Modified as a Troubled Debt Restructuring | 5 | 12 | 5 | 15 | ||||||
Recorded Investment on Modifications with Subsequent Default | $ 756 | [1] | $ 1,743 | [1] | $ 756 | [1] | $ 2,187 | [1] | ||
Commercial Mortgages [Member]
|
||||||||||
Financing Receivable, Modifications [Line Items] | ||||||||||
Number of Loans Modified as a Troubled Debt Restructuring | 1 | 2 | 1 | 2 | ||||||
Recorded Investment on Modifications with Subsequent Default | 197 | [1] | 196 | [1] | 197 | [1] | 196 | [1] | ||
Commercial Other [Member]
|
||||||||||
Financing Receivable, Modifications [Line Items] | ||||||||||
Number of Loans Modified as a Troubled Debt Restructuring | 2 | 7 | 2 | 8 | ||||||
Recorded Investment on Modifications with Subsequent Default | 52 | [1] | 341 | [1] | 52 | [1] | 395 | [1] | ||
Residential Mortgage [Member]
|
||||||||||
Financing Receivable, Modifications [Line Items] | ||||||||||
Number of Loans Modified as a Troubled Debt Restructuring | 1 | 3 | 1 | 5 | ||||||
Recorded Investment on Modifications with Subsequent Default | 495 | [1] | 1,206 | [1] | 495 | [1] | 1,596 | [1] | ||
Other Consumer [Member]
|
||||||||||
Financing Receivable, Modifications [Line Items] | ||||||||||
Number of Loans Modified as a Troubled Debt Restructuring | 1 | 0 | 1 | 0 | ||||||
Recorded Investment on Modifications with Subsequent Default | $ 12 | [1] | $ 0 | [1] | $ 12 | [1] | $ 0 | [1] | ||
|
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