Commitments, Contingencies and Derivatives (Tables)
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12 Months Ended |
Dec. 31, 2017 |
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| Commitments and Contingencies Disclosure [Abstract] |
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| Summary of Contractual and Notional Amounts of Financial Instruments |
The following is a summary of the contractual and notional amounts of the Company’s financial instruments: | | | | | | | | | | December 31, | | 2017 | | 2016 | Lending-Related Instruments: | |
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| Loan origination commitments and unadvanced lines of credit: | |
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| Home equity | $ | 477,401 |
| | $ | 454,225 |
| Commercial and commercial real estate | 49,482 |
| | 83,103 |
| Residential | 41,368 |
| | 17,795 |
| Letters of credit | 2,848 |
| | 2,580 |
| Other commitments | 523 |
| | 432 |
| Derivative Financial Instruments: | | | | Customer loan swaps | $ | 703,336 |
| | $ | 532,526 |
| FHLBB advance interest rate swaps | 50,000 |
| | 50,000 |
| Junior subordinated debt interest rate swaps | 43,000 |
| | 43,000 |
| Fixed-rate mortgage interest rate lock commitments | 21,746 |
| | 15,249 |
| Forward delivery commitments | 8,065 |
| | 15,125 |
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| Schedule of Interest Rate Derivatives |
Our pipeline of mortgage loans with fixed-rate interest rate lock commitments were as follows for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | December 31, | | | | | 2017 | | 2016 | | | Balance Sheet Location | | Notional | | Fair Value | | Notional | | Fair Value | Fixed-rate mortgage interest rate locks | | Other assets | | $ | 19,886 |
| | $ | 307 |
| | $ | 12,310 |
| | $ | 202 |
| Fixed-rate mortgage interest rate locks | | Accrued interest and other liabilities | | 1,860 |
| | (22 | ) | | 2,939 |
| | (15 | ) | Total | | | | $ | 21,746 |
| | $ | 285 |
| | $ | 15,249 |
| | $ | 187 |
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The following table presents the total positions, notional and fair value of the Bank's customer loans swaps with its commercial customers and the corresponding interest rate swap agreements with counterparty for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, | | | | | 2017 | | 2016 | | | Balance Sheet Location | | Number of Positions | | Notional | | Fair Value | | Number of Positions | | Notional | | Fair Value | Receive fixed, pay variable | | Other assets / (accrued interest and other liabilities) | | 42 |
| | $ | 226,884 |
| | $ | (5,036 | ) | | 50 |
| | $ | 266,263 |
| | $ | (1,945 | ) | Receive fixed, pay variable | | Other assets / (accrued interest and other liabilities) | | 23 |
| | 124,784 |
| | 1,799 |
| | — |
| | — |
| | — |
| Pay fixed, receive variable | | Other assets / (accrued interest and other liabilities) | | 65 |
| | 351,668 |
| | 3,237 |
| | 50 |
| | 266,263 |
| | 1,945 |
| Total | | | | 130 |
| | $ | 703,336 |
| | $ | — |
| | 100 |
| | $ | 532,526 |
| | $ | — |
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| Summary of Contractual and Notional Amounts of Company's Financial Instruments |
The Company's forward delivery commitments on loans held for sale was as follows for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | December 31, | | | | | 2017 | | 2016 | | | Balance Sheet Location | | Notional | | Fair Value | | Notional | | Fair Value | Forward delivery commitments ("best-effort") | | Other assets | | $ | 6,692 |
| | $ | 158 |
| | $ | 14,250 |
| | $ | 587 |
| Forward delivery commitments ("best-effort") | | Accrued interest and other liabilities | | 1,373 |
| | (16 | ) | | 875 |
| | (309 | ) | Total | | | | $ | 8,065 |
| | $ | 142 |
| | $ | 15,125 |
| | $ | 278 |
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The details of the junior subordinated debt interest rate swaps for the periods indicated were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, | | | | | | | | | | | 2017 | | 2016 | Notional Amount | | Trade Date | | Maturity Date | | Variable Index Received | | Fixed Rate Paid | | Fair Value(1) | | Fair Value(1) | $ | 10,000 |
| | 3/18/2009 | | 6/30/2021 | | 3-Month USD LIBOR | | 5.09% | | $ | (527 | ) | | $ | (806 | ) | 10,000 |
| | 7/8/2009 | | 6/30/2029 | | 3-Month USD LIBOR | | 5.84% | | (2,133 | ) | | (2,321 | ) | 10,000 |
| | 5/6/2010 | | 6/30/2030 | | 3-Month USD LIBOR | | 5.71% | | (2,129 | ) | | (2,290 | ) | 5,000 |
| | 3/14/2011 | | 3/30/2031 | | 3-Month USD LIBOR | | 4.35% | | (1,137 | ) | | (1,211 | ) | 8,000 |
| | 5/4/2011 | | 7/7/2031 | | 3-Month USD LIBOR | | 4.14% | | (1,645 | ) | | (1,744 | ) | $ | 43,000 |
| | | | | | | | | | $ | (7,571 | ) | | $ | (8,372 | ) |
(1) Presented within accrued interest and other liabilities on the consolidated statements of condition. The details of the FHLBB advance interest rate swaps for the periods indicated were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, | | | | | | | | | | | 2017 | | 2016 | Notional
Amount | | Trade
Date | | Maturity Date | | Variable Index
Received | | Fixed Rate
Paid | | Fair Value(1) | | Fair Value(2) | $ | 25,000 |
| | 2/25/2015 | | 2/25/2018 | | 1-Month USD LIBOR | | 1.54% | | $ | 20 |
| | $ | (152 | ) | 25,000 |
| | 2/25/2015 | | 2/25/2019 | | 1-Month USD LIBOR | | 1.74% | | 1 |
| | (237 | ) | $ | 50,000 |
| | | | | | | | | | $ | 21 |
| | $ | (389 | ) |
| | (1) | Presented within other assets on the consolidated statements of condition. |
| | (2) | Presented within accrued interest and other liabilities on the consolidated statements of condition. |
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| Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) |
The table below presents the effect of the Company’s derivative financial instruments included in OCI and current earnings for the periods indicated: | | | | | | | | | | | | | | | | For The Year Ended
December 31, | | | 2017 | | 2016 | | 2015 | Derivatives designated as cash flow hedges | | | | | | | Effective portion of unrealized losses recognized within AOCI during the period, net of tax | | $ | (248 | ) | | $ | (637 | ) | | $ | (1,533 | ) | Net reclassification adjustment for effective portion of cash flow hedges included in interest expense, gross(1) | | $ | 1,592 |
| | $ | 2,026 |
| | $ | 1,695 |
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| | (1) | Reclassified into the consolidated statements of income within interest expense. |
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