MAINE | 01-0413282 |
(State or other jurisdiction of | (I.R.S. Employer |
incorporation or organization) | Identification No.) |
2 ELM STREET, CAMDEN, ME | 04843 |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, without par value | CAC | The NASDAQ Stock Market LLC |
Large accelerated filer ¨ | Accelerated filer x |
Non-accelerated filer ¨ | Smaller reporting company ¨ |
Emerging growth company ¨ |
PAGE | ||
PART I. FINANCIAL INFORMATION | ||
ITEM 1. | FINANCIAL STATEMENTS | |
Consolidated Statements of Condition (unaudited) - June 30, 2019 and December 31, 2018 | ||
Consolidated Statements of Income (unaudited) - Three and Six Months Ended June 30, 2019 and 2018 | ||
Consolidated Statements of Comprehensive Income (unaudited) - Three and Six Months Ended June 30, 2019 and 2018 | ||
Consolidated Statements of Changes in Shareholders’ Equity (unaudited) - Three and Six Months Ended June 30, 2019 and 2018 | ||
Consolidated Statements of Cash Flows (unaudited) - Six Months Ended June 30, 2019 and 2018 | ||
Notes to the Unaudited Consolidated Financial Statements | ||
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK | |
ITEM 4. | CONTROLS AND PROCEDURES | |
PART II. OTHER INFORMATION | ||
ITEM 1. | LEGAL PROCEEDINGS | |
ITEM 1A. | RISK FACTORS | |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS | |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES | |
ITEM 4. | MINE SAFETY DISCLOSURES | |
ITEM 5. | OTHER INFORMATION | |
ITEM 6. | EXHIBITS | |
SIGNATURES |
CONSOLIDATED STATEMENTS OF CONDITION (unaudited) | ||||||||
(In thousands, except number of shares) | June 30, 2019 | December 31, 2018 | ||||||
ASSETS | ||||||||
Cash and due from banks | $ | 48,153 | $ | 52,240 | ||||
Interest-bearing deposits in other banks (including restricted cash) | 38,083 | 14,759 | ||||||
Total cash, cash equivalents and restricted cash | 86,236 | 66,999 | ||||||
Investments: | ||||||||
Available-for-sale securities, at fair value (book value of $915,099 and $933,399, respectively) | 920,083 | 910,692 | ||||||
Held-to-maturity securities, at amortized cost (fair value of $1,335 and $1,291, respectively) | 1,304 | 1,307 | ||||||
Other investments | 11,713 | 14,679 | ||||||
Total investments | 933,100 | 926,678 | ||||||
Loans held for sale, at fair value (book value of $13,088 and $4,314, respectively) | 13,113 | 4,403 | ||||||
Loans | 3,100,324 | 3,026,222 | ||||||
Less: allowance for loan losses | (26,163 | ) | (24,712 | ) | ||||
Net loans | 3,074,161 | 3,001,510 | ||||||
Goodwill | 94,697 | 94,697 | ||||||
Other intangible assets | 3,877 | 4,230 | ||||||
Bank-owned life insurance | 91,116 | 89,919 | ||||||
Premises and equipment, net | 41,402 | 42,495 | ||||||
Deferred tax assets | 16,836 | 23,053 | ||||||
Other assets | 92,500 | 43,451 | ||||||
Total assets | $ | 4,447,038 | $ | 4,297,435 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Liabilities | ||||||||
Deposits: | ||||||||
Non-interest checking | $ | 505,355 | $ | 496,729 | ||||
Interest checking | 1,111,424 | 1,023,373 | ||||||
Savings and money market | 1,074,094 | 1,137,356 | ||||||
Certificates of deposit | 547,786 | 443,912 | ||||||
Brokered deposits | 352,951 | 363,104 | ||||||
Total deposits | 3,591,610 | 3,464,474 | ||||||
Short-term borrowings | 241,647 | 270,868 | ||||||
Long-term borrowings | 10,000 | 11,580 | ||||||
Subordinated debentures | 58,991 | 59,067 | ||||||
Accrued interest and other liabilities | 77,031 | 55,621 | ||||||
Total liabilities | 3,979,279 | 3,861,610 | ||||||
Commitments and Contingencies | ||||||||
Shareholders’ Equity | ||||||||
Common stock, no par value: authorized 40,000,000 shares, issued and outstanding 15,457,480 and 15,591,914 on June 30, 2019 and December 31, 2018, respectively | 151,801 | 158,215 | ||||||
Retained earnings | 320,421 | 302,030 | ||||||
Accumulated other comprehensive loss: | ||||||||
Net unrealized gains (losses) on available-for-sale debt securities, net of tax | 3,912 | (17,826 | ) | |||||
Net unrealized losses on cash flow hedging derivative instruments, net of tax | (6,314 | ) | (4,437 | ) | ||||
Net unrecognized losses on postretirement plans, net of tax | (2,061 | ) | (2,157 | ) | ||||
Total accumulated other comprehensive loss | (4,463 | ) | (24,420 | ) | ||||
Total shareholders’ equity | 467,759 | 435,825 | ||||||
Total liabilities and shareholders’ equity | $ | 4,447,038 | $ | 4,297,435 |
CONSOLIDATED STATEMENTS OF INCOME (unaudited) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands, except number of shares and per share data) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Interest Income | ||||||||||||||||
Interest and fees on loans | $ | 36,092 | $ | 31,367 | $ | 71,813 | $ | 61,201 | ||||||||
Taxable interest on investments | 4,941 | 4,386 | 9,935 | 8,611 | ||||||||||||
Nontaxable interest on investments | 624 | 658 | 1,268 | 1,330 | ||||||||||||
Dividend income | 174 | 343 | 404 | 629 | ||||||||||||
Other interest income | 606 | 335 | 1,026 | 596 | ||||||||||||
Total interest income | 42,437 | 37,089 | 84,446 | 72,367 | ||||||||||||
Interest Expense | ||||||||||||||||
Interest on deposits | 9,156 | 4,459 | 17,579 | 8,208 | ||||||||||||
Interest on borrowings | 885 | 2,298 | 1,859 | 4,078 | ||||||||||||
Interest on subordinated debentures | 823 | 851 | 1,540 | 1,698 | ||||||||||||
Total interest expense | 10,864 | 7,608 | 20,978 | 13,984 | ||||||||||||
Net interest income | 31,573 | 29,481 | 63,468 | 58,383 | ||||||||||||
Provision for credit losses | 1,173 | 983 | 1,917 | 486 | ||||||||||||
Net interest income after provision for credit losses | 30,400 | 28,498 | 61,551 | 57,897 | ||||||||||||
Non-Interest Income | ||||||||||||||||
Debit card income | 2,281 | 2,126 | 4,291 | 4,055 | ||||||||||||
Service charges on deposit accounts | 2,209 | 2,069 | 4,232 | 4,036 | ||||||||||||
Mortgage banking income, net | 1,742 | 1,609 | 2,994 | 3,000 | ||||||||||||
Income from fiduciary services | 1,545 | 1,407 | 2,937 | 2,690 | ||||||||||||
Brokerage and insurance commissions | 732 | 685 | 1,317 | 1,335 | ||||||||||||
Bank-owned life insurance | 603 | 609 | 1,197 | 1,217 | ||||||||||||
Customer loan swap fees | 285 | 180 | 810 | 267 | ||||||||||||
Net gain on sale of securities | 27 | 31 | 27 | 31 | ||||||||||||
Other income | 613 | 785 | 1,621 | 1,674 | ||||||||||||
Total non-interest income | 10,037 | 9,501 | 19,426 | 18,305 | ||||||||||||
Non-Interest Expense | ||||||||||||||||
Salaries and employee benefits | 13,461 | 12,728 | 26,439 | 25,290 | ||||||||||||
Furniture, equipment and data processing | 2,723 | 2,549 | 5,403 | 5,135 | ||||||||||||
Net occupancy costs | 1,639 | 1,625 | 3,553 | 3,498 | ||||||||||||
Consulting and professional fees | 974 | 1,116 | 1,787 | 1,920 | ||||||||||||
Debit card expense | 883 | 776 | 1,706 | 1,506 | ||||||||||||
Regulatory assessments | 437 | 501 | 909 | 1,000 | ||||||||||||
Amortization of intangible assets | 176 | 181 | 352 | 362 | ||||||||||||
Other real estate owned and collection costs, net | 409 | 251 | 102 | 326 | ||||||||||||
Other expenses | 3,256 | 3,168 | 6,490 | 6,162 | ||||||||||||
Total non-interest expense | 23,958 | 22,895 | 46,741 | 45,199 | ||||||||||||
Income before income tax expense | 16,479 | 15,104 | 34,236 | 31,003 | ||||||||||||
Income tax expense | 3,275 | 2,887 | 6,759 | 5,966 | ||||||||||||
Net Income | $ | 13,204 | $ | 12,217 | $ | 27,477 | $ | 25,037 | ||||||||
Per Share Data | ||||||||||||||||
Basic earnings per share | $ | 0.85 | $ | 0.78 | $ | 1.76 | $ | 1.60 | ||||||||
Diluted earnings per share | $ | 0.85 | $ | 0.78 | $ | 1.76 | $ | 1.60 | ||||||||
Weighted average number of common shares outstanding | 15,519,827 | 15,572,848 | 15,555,770 | 15,557,500 | ||||||||||||
Diluted weighted average number of common shares outstanding | 15,559,760 | 15,629,779 | 15,595,654 | 15,615,038 | ||||||||||||
Cash dividends declared per share | $ | 0.30 | $ | 0.30 | $ | 0.60 | $ | 0.55 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Net Income | $ | 13,204 | $ | 12,217 | $ | 27,477 | $ | 25,037 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Net change in unrealized gains (losses) on available-for-sale securities: | ||||||||||||||||
Net change in unrealized gains (losses) on available-for-sale securities, net of tax of ($2,975), $847, ($5,960) and $3,971, respectively | 10,860 | (3,058 | ) | 21,759 | (14,460 | ) | ||||||||||
Net reclassification adjustment for net gains included in net income, net of tax of $6, $7, $6 and $7, respectively(1) | (21 | ) | (24 | ) | (21 | ) | (24 | ) | ||||||||
Net change in unrealized gains (losses) on available-for-sale securities, net of tax | 10,839 | (3,082 | ) | 21,738 | (14,484 | ) | ||||||||||
Net change in unrealized losses on cash flow hedging derivatives: | ||||||||||||||||
Net change in unrealized losses on cash flow hedging derivatives, net of tax of $330, ($123), $583 and ($430), respectively | (1,203 | ) | 414 | (2,128 | ) | 1,570 | ||||||||||
Net reclassification adjustment for effective portion of cash flow hedges, net of tax of ($44), ($44), ($69) and ($105), respectively(2) | 157 | 159 | 251 | 382 | ||||||||||||
Net change in unrealized losses on cash flow hedging derivatives, net of tax | (1,046 | ) | 573 | (1,877 | ) | 1,952 | ||||||||||
Reclassification of amortization of net unrecognized actuarial loss and prior service cost, net of tax of ($13), ($32), ($26) and ($63), respectively(3) | 48 | 116 | 96 | 232 | ||||||||||||
Other comprehensive income (loss) | 9,841 | (2,393 | ) | 19,957 | (12,300 | ) | ||||||||||
Comprehensive Income | $ | 23,045 | $ | 9,824 | $ | 47,434 | $ | 12,737 |
(1) | Reclassified into the consolidated statements of income within net gain on sale of securities. |
(2) | Reclassified into the consolidated statements of income within interest and fees on loans, interest on borrowings and subordinated debentures. |
(3) | Reclassified into the consolidated statements of income within salaries and employee benefits and other expenses. |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (unaudited) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
Common Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | ||||||||||||||||
(In thousands, except number of shares and per share data) | Shares Outstanding | Amount | |||||||||||||||||
Balance at March 31, 2018 | 15,565,868 | $ | 156,860 | $ | 275,841 | $ | (29,654 | ) | $ | 403,047 | |||||||||
Net income | — | — | 12,217 | — | 12,217 | ||||||||||||||
Other comprehensive loss, net of tax | — | — | — | (2,393 | ) | (2,393 | ) | ||||||||||||
Stock-based compensation expense | — | 580 | — | — | 580 | ||||||||||||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings | 10,381 | 54 | — | — | 54 | ||||||||||||||
Cash dividends declared ($0.30 per share) | — | — | (4,686 | ) | — | (4,686 | ) | ||||||||||||
Balance at June 30, 2018 | 15,576,249 | $ | 157,494 | $ | 283,372 | $ | (32,047 | ) | $ | 408,819 | |||||||||
Balance at March 31, 2019 | 15,560,565 | $ | 156,152 | $ | 311,870 | $ | (14,304 | ) | $ | 453,718 | |||||||||
Net income | — | — | 13,204 | — | 13,204 | ||||||||||||||
Other comprehensive income, net of tax | — | — | — | 9,841 | 9,841 | ||||||||||||||
Stock-based compensation expense | — | 477 | — | — | 477 | ||||||||||||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings | 8,136 | (26 | ) | — | — | (26 | ) | ||||||||||||
Common stock repurchased | (111,221 | ) | (4,802 | ) | — | — | (4,802 | ) | |||||||||||
Cash dividends declared ($0.30 per share) | — | — | (4,653 | ) | — | (4,653 | ) | ||||||||||||
Balance at June 30, 2019 | 15,457,480 | $ | 151,801 | $ | 320,421 | $ | (4,463 | ) | $ | 467,759 |
Six Months Ended | |||||||||||||||||||
Common Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | ||||||||||||||||
(In thousands, except number of shares and per share data) | Shares Outstanding | Amount | |||||||||||||||||
Balance at December 31, 2017 | 15,524,704 | $ | 156,904 | $ | 266,723 | $ | (20,214 | ) | $ | 403,413 | |||||||||
Cumulative-effect adjustment — ASU 2016-01(1) | — | — | 198 | (198 | ) | — | |||||||||||||
Cumulative-effect adjustment — ASU 2017-12(2) | — | — | — | 665 | 665 | ||||||||||||||
Net income | — | — | 25,037 | — | 25,037 | ||||||||||||||
Other comprehensive loss, net of tax(1) | — | — | — | (12,300 | ) | (12,300 | ) | ||||||||||||
Stock-based compensation expense | — | 1,011 | — | — | 1,011 | ||||||||||||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings | 51,545 | (421 | ) | — | — | (421 | ) | ||||||||||||
Cash dividends declared ($0.55 per share) | — | — | (8,586 | ) | — | (8,586 | ) | ||||||||||||
Balance at June 30, 2018 | 15,576,249 | $ | 157,494 | $ | 283,372 | $ | (32,047 | ) | $ | 408,819 | |||||||||
Balance at December 31, 2018 | 15,591,914 | $ | 158,215 | $ | 302,030 | $ | (24,420 | ) | $ | 435,825 | |||||||||
Cumulative-effect adjustment — ASU 2016-02(3) | — | — | 254 | — | 254 | ||||||||||||||
Net income | — | — | 27,477 | — | 27,477 | ||||||||||||||
Other comprehensive income, net of tax | — | — | — | 19,957 | 19,957 | ||||||||||||||
Stock-based compensation expense | — | 935 | — | — | 935 | ||||||||||||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings | 32,344 | (241 | ) | — | — | (241 | ) | ||||||||||||
Common stock repurchased | (166,778 | ) | (7,108 | ) | — | — | (7,108 | ) | |||||||||||
Cash dividends declared ($0.60 per share) | — | — | (9,340 | ) | — | (9,340 | ) | ||||||||||||
Balance at June 30, 2019 | 15,457,480 | $ | 151,801 | $ | 320,421 | $ | (4,463 | ) | $ | 467,759 |
(1) | Effective January 1, 2018, the Company adopted ASU 2016-01, Income Statement - Financial Instruments. As a result of the adoption, the Company reclassified its unrealized gain on equity investments from accumulated other comprehensive loss to retained earnings. |
(2) | Effective January 1, 2018, the Company adopted ASU 2017-12, Derivatives and Hedging. In conjunction with the adoption, the Company made the transition election to reclassify qualifying securities designated as held-to-maturity to available-for-sale. |
(3) | Effective January 1, 2019, the Company adopted ASU 2016-02, Leases, on a modified-retrospective basis. Refer to Note 2 for further details. |
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | ||||||||
Six Months Ended June 30, | ||||||||
(In thousands) | 2019 | 2018 | ||||||
Operating Activities | ||||||||
Net Income | $ | 27,477 | $ | 25,037 | ||||
Adjustments to reconcile net income to net cash (used by) provided by operating activities: | ||||||||
Originations of mortgage loans held for sale | (86,351 | ) | (101,749 | ) | ||||
Proceeds from the sale of mortgage loans | 79,575 | 99,778 | ||||||
Gain on sale of mortgage loans, net of origination costs | (1,998 | ) | (2,550 | ) | ||||
Provision for credit losses | 1,917 | 486 | ||||||
Depreciation and amortization expense | 1,901 | 1,907 | ||||||
Investment securities amortization and accretion, net | 1,371 | 1,559 | ||||||
Stock-based compensation expense | 935 | 1,011 | ||||||
Amortization of intangible assets | 352 | 362 | ||||||
Purchase accounting accretion, net | (817 | ) | (1,031 | ) | ||||
Increase in other assets | (24,895 | ) | (3,699 | ) | ||||
(Decrease) increase in other liabilities | (5,774 | ) | 10,065 | |||||
Net cash (used by) provided by operating activities | (6,307 | ) | 31,176 | |||||
Investing Activities | ||||||||
Proceeds from sales and maturities of available-for-sale securities | 115,715 | 73,264 | ||||||
Purchase of available-for-sale securities | (98,755 | ) | (100,615 | ) | ||||
Proceeds from maturities of held-to-maturity securities | — | 750 | ||||||
Net increase in loans | (74,556 | ) | (85,274 | ) | ||||
Purchase of Federal Home Loan Bank stock | (3,656 | ) | (8,450 | ) | ||||
Proceeds from sale of Federal Home Loan Bank stock | 6,706 | 6,550 | ||||||
Purchase of premises and equipment | (1,896 | ) | (1,695 | ) | ||||
Proceeds from the sale of premises and equipment | — | 749 | ||||||
Proceeds from other investments | — | 205 | ||||||
Recoveries of previously charged-off loans | 133 | 199 | ||||||
Proceeds from the sale of other real estate owned | 554 | — | ||||||
Net cash used by investing activities | (55,755 | ) | (114,317 | ) | ||||
Financing Activities | ||||||||
Net increase in deposits | 127,169 | 55,703 | ||||||
Net (repayments of) proceeds from borrowings less than 90 days | (29,221 | ) | 49,830 | |||||
Common stock repurchase | (6,997 | ) | — | |||||
Exercise of stock options and issuance of restricted stock, net of repurchase for tax withholdings | (241 | ) | (421 | ) | ||||
Cash dividends paid on common stock | (9,358 | ) | (7,796 | ) | ||||
Finance lease payments | (53 | ) | — | |||||
Net cash provided by financing activities | 81,299 | 97,316 | ||||||
Net increase in cash, cash equivalents and restricted cash | 19,237 | 14,175 | ||||||
Cash, cash equivalents, and restricted cash at beginning of period | 66,999 | 102,971 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 86,236 | $ | 117,146 | ||||
Supplemental information | ||||||||
Interest paid | $ | 20,214 | $ | 13,707 | ||||
Income taxes paid | 5,351 | 5,176 | ||||||
Unsettled common stock repurchase | 111 | — |
AFS: | Available-for-sale | GAAP: | Generally accepted accounting principles in the United States | |
ALCO: | Asset/Liability Committee | HPFC: | Healthcare Professional Funding Corporation, a wholly-owned subsidiary of Camden National Bank | |
ALL: | Allowance for loan losses | HTM: | Held-to-maturity | |
AOCI: | Accumulated other comprehensive income (loss) | IRS: | Internal Revenue Service | |
ASC: | Accounting Standards Codification | LIBOR: | London Interbank Offered Rate | |
ASU: | Accounting Standards Update | LTIP: | Long-Term Performance Share Plan | |
Bank: | Camden National Bank, a wholly-owned subsidiary of Camden National Corporation | Management ALCO: | Management Asset/Liability Committee | |
BOLI: | Bank-owned life insurance | MBS: | Mortgage-backed security | |
Board ALCO: | Board of Directors' Asset/Liability Committee | MSPP: | Management Stock Purchase Plan | |
CCTA: | Camden Capital Trust A, an unconsolidated entity formed by Camden National Corporation | N.M.: | Not meaningful | |
CDs: | Certificate of deposits | OCC: | Office of the Comptroller of the Currency | |
Company: | Camden National Corporation | OCI: | Other comprehensive income (loss) | |
CMO: | Collateralized mortgage obligation | OREO: | Other real estate owned | |
DCRP: | Defined Contribution Retirement Plan | OTTI: | Other-than-temporary impairment | |
EPS: | Earnings per share | SERP: | Supplemental executive retirement plans | |
FASB: | Financial Accounting Standards Board | Tax Act: | Tax Cuts and Jobs Act of 2017, enacted on December 22, 2017 | |
FDIC: | Federal Deposit Insurance Corporation | TDR: | Troubled-debt restructured loan | |
FHLB: | Federal Home Loan Bank | UBCT: | Union Bankshares Capital Trust I, an unconsolidated entity formed by Union Bankshares Company that was subsequently acquired by Camden National Corporation | |
FHLBB: | Federal Home Loan Bank of Boston | U.S.: | United States of America | |
FRB: | Federal Reserve System Board of Governors | 2003 Plan: | 2003 Stock Option and Incentive Plan | |
FRBB: | Federal Reserve Bank of Boston | 2012 Plan: | 2012 Equity and Incentive Plan |
• | An entity need not reassess whether any expired or existing contract is or contains leases. |
• | An entity need not reassess the lease classification for any expired or existing leases. |
• | An entity need not reassess initial direct costs for any existing leases. |
• | An entity may elect to apply hindsight to leases that existed during the period from the beginning of the earliest period presented in the financial statements until the effective date. |
• | A modified retrospective transition method, which allows companies to apply ASU 2016-02 at the date of adoption and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. In conjunction with the adoption of Topic 842, the Company made the following accounting policy elections: |
• | For leases with a term of 12 months or less, a right-of-use asset or lease liability will not be recognized on the consolidated statements of condition. |
• | For non-real estate leased assets with individual undiscounted contractual cash flows of less than $500,000 over the reasonably certain term of the lease, a right-of-use asset or lease liability will not be recognized on the consolidated statements of condition as the lease is considered immaterial to the Company's financial statements. |
• | A change in the Company's assessment of its ALL and allowance on unused commitments as it will transition from an incurred loss model to an expected loss model, which may result in an increase in the ALL upon adoption and may negatively impact the Company and Bank's regulatory capital ratios. |
• | An allowance on the expected losses over the life of the Company's HTM investment securities to be recorded upon adoption, which may reduce the carrying value of these securities. |
• | Changes to the considerations when assessing AFS debt securities for OTTI, including (i) no longer considering the amount of time a security has been in an unrealized loss position and (ii) no longer considering the historical and implied volatility of a security and recoveries or declines in the fair value after the balance sheet date, as well as the presentation of OTTI as an allowance rather than a permanent write-down of the debt security. |
• | Changes to the disclosure requirements to reflect the transition from an incurred loss methodology to an expected credit loss methodology, as well as certain disclosures of credit quality indicators in relation to the amortized cost of financing receivables disaggregated by year of origination (or vintage). |
(In thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||
June 30, 2019 | ||||||||||||||||
AFS Investments (carried at fair value): | ||||||||||||||||
Obligations of states and political subdivisions | $ | 87,223 | $ | 1,932 | $ | (26 | ) | $ | 89,129 | |||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 455,330 | 3,250 | (2,203 | ) | 456,377 | |||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 351,149 | 3,940 | (3,018 | ) | 352,071 | |||||||||||
Subordinated corporate bonds | 21,397 | 1,109 | — | 22,506 | ||||||||||||
Total AFS investments | $ | 915,099 | $ | 10,231 | $ | (5,247 | ) | $ | 920,083 | |||||||
HTM Investments (carried at amortized cost): | ||||||||||||||||
Obligations of states and political subdivisions | $ | 1,304 | $ | 31 | $ | — | $ | 1,335 | ||||||||
Total HTM investments | $ | 1,304 | $ | 31 | $ | — | $ | 1,335 | ||||||||
December 31, 2018 | ||||||||||||||||
AFS Investments (carried at fair value): | ||||||||||||||||
Obligations of states and political subdivisions | $ | 94,430 | $ | 216 | $ | (894 | ) | $ | 93,752 | |||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 466,613 | 583 | (13,524 | ) | 453,672 | |||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 351,958 | 1,007 | (10,071 | ) | 342,894 | |||||||||||
Subordinated corporate bonds | 20,398 | 23 | (47 | ) | 20,374 | |||||||||||
Total AFS investments | $ | 933,399 | $ | 1,829 | $ | (24,536 | ) | $ | 910,692 | |||||||
HTM Investments (carried at amortized cost): | ||||||||||||||||
Obligations of states and political subdivisions | $ | 1,307 | $ | 8 | $ | (24 | ) | $ | 1,291 | |||||||
Total HTM investments | $ | 1,307 | $ | 8 | $ | (24 | ) | $ | 1,291 |
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||
(In thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||
AFS Investments: | ||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | — | $ | — | $ | 4,051 | $ | (26 | ) | $ | 4,051 | $ | (26 | ) | ||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | — | — | 246,463 | (2,203 | ) | 246,463 | (2,203 | ) | ||||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | — | — | 136,876 | (3,018 | ) | 136,876 | (3,018 | ) | ||||||||||||||||
Total AFS investments | $ | — | $ | — | $ | 387,390 | $ | (5,247 | ) | $ | 387,390 | $ | (5,247 | ) | ||||||||||
December 31, 2018 | ||||||||||||||||||||||||
AFS Investments: | ||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 36,218 | $ | (281 | ) | $ | 28,437 | $ | (613 | ) | $ | 64,655 | $ | (894 | ) | |||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 46,459 | (252 | ) | 364,430 | (13,272 | ) | 410,889 | (13,524 | ) | |||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 5,956 | (40 | ) | 227,461 | (10,031 | ) | 233,417 | (10,071 | ) | |||||||||||||||
Subordinated corporate bonds | 11,378 | (26 | ) | 966 | (21 | ) | 12,344 | (47 | ) | |||||||||||||||
Total AFS investments | $ | 100,011 | $ | (599 | ) | $ | 621,294 | $ | (23,937 | ) | $ | 721,305 | $ | (24,536 | ) | |||||||||
HTM Investments: | ||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 509 | $ | (5 | ) | $ | 411 | $ | (19 | ) | $ | 920 | $ | (24 | ) | |||||||||
Total HTM investments | $ | 509 | $ | (5 | ) | $ | 411 | $ | (19 | ) | $ | 920 | $ | (24 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Proceeds from sales of investments | $ | 45,826 | $ | 9,898 | $ | 45,826 | $ | 9,898 | ||||||||
Gross realized gains | 371 | 31 | 371 | 31 | ||||||||||||
Gross realized losses | (344 | ) | — | (344 | ) | — |
(In thousands) | Amortized Cost | Fair Value | ||||||
AFS Investments | ||||||||
Due in one year or less | $ | — | $ | — | ||||
Due after one year through five years | 69,611 | 69,758 | ||||||
Due after five years through ten years | 231,573 | 234,217 | ||||||
Due after ten years | 613,916 | 616,108 | ||||||
$ | 915,100 | $ | 920,083 | |||||
HTM Investments | ||||||||
Due in one year or less | $ | — | $ | — | ||||
Due after one year through five years | — | — | ||||||
Due after five years through ten years | 1,304 | 1,335 | ||||||
Due after ten years | — | — | ||||||
$ | 1,304 | $ | 1,335 |
(In thousands) | Cost | Unrealized Gains | Unrealized Losses | Fair Value / Carrying Value | ||||||||||||
June 30, 2019 | ||||||||||||||||
Equity securities - bank stock (carried at fair value) | $ | 544 | $ | 286 | $ | — | $ | 830 | ||||||||
FHLBB (carried at cost) | 5,509 | — | — | 5,509 | ||||||||||||
FRB (carried at cost) | 5,374 | — | — | 5,374 | ||||||||||||
Total other investments | $ | 11,427 | $ | 286 | $ | — | $ | 11,713 | ||||||||
December 31, 2018 | ||||||||||||||||
Equity securities - bank stock (carried at fair value) | $ | 544 | $ | 202 | $ | — | $ | 746 | ||||||||
FHLBB (carried at cost) | 8,559 | — | — | 8,559 | ||||||||||||
FRB (carried at cost) | 5,374 | — | — | 5,374 | ||||||||||||
Total other investments | $ | 14,477 | $ | 202 | $ | — | $ | 14,679 |
(In thousands) | June 30, 2019 | December 31, 2018 | ||||||
Residential real estate | $ | 1,035,792 | $ | 992,866 | ||||
Commercial real estate | 1,260,639 | 1,269,533 | ||||||
Commercial | 428,676 | 381,780 | ||||||
Home equity | 323,536 | 327,763 | ||||||
Consumer | 23,665 | 20,624 | ||||||
HPFC | 28,016 | 33,656 | ||||||
Total loans | $ | 3,100,324 | $ | 3,026,222 |
(In thousands) | June 30, 2019 | December 31, 2018 | ||||||
Net unamortized fair value mark discount on acquired loans | $ | 3,240 | $ | 3,936 | ||||
Net unamortized loan origination costs | (2,586 | ) | (1,865 | ) | ||||
Total | $ | 654 | $ | 2,071 |
(In thousands) | Residential Real Estate | Commercial Real Estate | Commercial | Home Equity | Consumer | HPFC | Total | |||||||||||||||||||||
For The Three and Six Months Ended June 30, 2019 | ||||||||||||||||||||||||||||
ALL for the three months ended: | ||||||||||||||||||||||||||||
Beginning balance | $ | 6,153 | $ | 11,838 | $ | 3,616 | $ | 3,027 | $ | 259 | $ | 308 | $ | 25,201 | ||||||||||||||
Loans charged off | (14 | ) | — | (217 | ) | (34 | ) | (6 | ) | — | (271 | ) | ||||||||||||||||
Recoveries | 2 | 3 | 49 | — | 4 | — | 58 | |||||||||||||||||||||
Provision (credit)(1) | 108 | 311 | 659 | (1 | ) | 126 | (28 | ) | 1,175 | |||||||||||||||||||
Ending balance | $ | 6,249 | $ | 12,152 | $ | 4,107 | $ | 2,992 | $ | 383 | $ | 280 | $ | 26,163 | ||||||||||||||
ALL for the six months ended: | ||||||||||||||||||||||||||||
Beginning balance | $ | 6,071 | $ | 11,654 | $ | 3,620 | $ | 2,796 | $ | 234 | $ | 337 | $ | 24,712 | ||||||||||||||
Loans charged off | (25 | ) | (65 | ) | (453 | ) | (44 | ) | (20 | ) | — | (607 | ) | |||||||||||||||
Recoveries | 4 | 7 | 111 | — | 11 | — | 133 | |||||||||||||||||||||
Provision (credit)(1) | 199 | 556 | 829 | 240 | 158 | (57 | ) | 1,925 | ||||||||||||||||||||
Ending balance | $ | 6,249 | $ | 12,152 | $ | 4,107 | $ | 2,992 | $ | 383 | $ | 280 | $ | 26,163 | ||||||||||||||
ALL balance attributable to loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 524 | $ | 27 | $ | 322 | $ | 310 | $ | — | $ | — | $ | 1,183 | ||||||||||||||
Collectively evaluated for impairment | 5,725 | 12,125 | 3,785 | 2,682 | 383 | 280 | 24,980 | |||||||||||||||||||||
Total ending ALL | $ | 6,249 | $ | 12,152 | $ | 4,107 | $ | 2,992 | $ | 383 | $ | 280 | $ | 26,163 | ||||||||||||||
Loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 4,472 | $ | 409 | $ | 675 | $ | 887 | $ | — | $ | — | $ | 6,443 | ||||||||||||||
Collectively evaluated for impairment | 1,031,320 | 1,260,230 | 428,001 | 322,649 | 23,665 | 28,016 | 3,093,881 | |||||||||||||||||||||
Total ending loans balance | $ | 1,035,792 | $ | 1,260,639 | $ | 428,676 | $ | 323,536 | $ | 23,665 | $ | 28,016 | $ | 3,100,324 | ||||||||||||||
For The Three and Six Months Ended June 30, 2018 | ||||||||||||||||||||||||||||
ALL for the three months ended: | ||||||||||||||||||||||||||||
Beginning balance | $ | 5,497 | $ | 10,286 | $ | 4,126 | $ | 2,427 | $ | 230 | $ | 424 | $ | 22,990 | ||||||||||||||
Loans charged off | (85 | ) | (86 | ) | (127 | ) | (75 | ) | (16 | ) | — | (389 | ) | |||||||||||||||
Recoveries | 15 | 2 | 57 | 1 | 2 | — | 77 | |||||||||||||||||||||
Provision (credit)(1) | 352 | 108 | 247 | 263 | 44 | (24 | ) | 990 | ||||||||||||||||||||
Ending balance | $ | 5,779 | $ | 10,310 | $ | 4,303 | $ | 2,616 | $ | 260 | $ | 400 | $ | 23,668 | ||||||||||||||
ALL for the six months ended: | ||||||||||||||||||||||||||||
Beginning balance | $ | 5,086 | $ | 11,863 | $ | 4,171 | $ | 2,367 | $ | 233 | $ | 451 | $ | 24,171 | ||||||||||||||
Loans charged off | (116 | ) | (512 | ) | (298 | ) | (224 | ) | (42 | ) | — | (1,192 | ) | |||||||||||||||
Recoveries | 15 | 15 | 120 | 44 | 5 | — | 199 | |||||||||||||||||||||
Provision(1) | 794 | (1,056 | ) | 310 | 429 | 64 | (51 | ) | 490 | |||||||||||||||||||
Ending balance | $ | 5,779 | $ | 10,310 | $ | 4,303 | $ | 2,616 | $ | 260 | $ | 400 | $ | 23,668 | ||||||||||||||
ALL balance attributable to loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 585 | $ | 23 | $ | — | $ | 226 | $ | — | $ | — | $ | 834 | ||||||||||||||
Collectively evaluated for impairment | 5,194 | 10,287 | 4,303 | 2,390 | 260 | 400 | 22,834 | |||||||||||||||||||||
Total ending ALL | $ | 5,779 | $ | 10,310 | $ | 4,303 | $ | 2,616 | $ | 260 | $ | 400 | $ | 23,668 | ||||||||||||||
Loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 5,400 | $ | 5,093 | $ | 1,611 | $ | 487 | $ | — | $ | — | $ | 12,591 | ||||||||||||||
Collectively evaluated for impairment | 902,510 | 1,184,959 | 384,782 | 323,184 | 19,506 | 39,997 | 2,854,938 | |||||||||||||||||||||
Total ending loans balance | $ | 907,910 | $ | 1,190,052 | $ | 386,393 | $ | 323,671 | $ | 19,506 | $ | 39,997 | $ | 2,867,529 |
(In thousands) | Residential Real Estate | Commercial Real Estate | Commercial | Home Equity | Consumer | HPFC | Total | |||||||||||||||||||||
For The Year Ended December 31, 2018 | ||||||||||||||||||||||||||||
ALL: | ||||||||||||||||||||||||||||
Beginning balance | $ | 5,086 | $ | 11,863 | $ | 4,171 | $ | 2,367 | $ | 233 | $ | 451 | $ | 24,171 | ||||||||||||||
Loans charged off | (173 | ) | (512 | ) | (736 | ) | (476 | ) | (96 | ) | (255 | ) | (2,248 | ) | ||||||||||||||
Recoveries | 90 | 28 | 1,770 | 44 | 11 | 1 | 1,944 | |||||||||||||||||||||
Provision (credit)(1) | 1,068 | 275 | (1,585 | ) | 861 | 86 | 140 | 845 | ||||||||||||||||||||
Ending balance | $ | 6,071 | $ | 11,654 | $ | 3,620 | $ | 2,796 | $ | 234 | $ | 337 | $ | 24,712 | ||||||||||||||
ALL balance attributable to loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 586 | $ | 23 | $ | 53 | $ | 162 | $ | — | $ | — | $ | 824 | ||||||||||||||
Collectively evaluated for impairment | 5,485 | 11,631 | 3,567 | 2,634 | 234 | 337 | 23,888 | |||||||||||||||||||||
Total ending ALL | $ | 6,071 | $ | 11,654 | $ | 3,620 | $ | 2,796 | $ | 234 | $ | 337 | $ | 24,712 | ||||||||||||||
Loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 4,762 | $ | 930 | $ | 786 | $ | 442 | $ | 6 | $ | — | $ | 6,926 | ||||||||||||||
Collectively evaluated for impairment | 988,104 | 1,268,603 | 380,994 | 327,321 | 20,618 | 33,656 | 3,019,296 | |||||||||||||||||||||
Total ending loans balance | $ | 992,866 | $ | 1,269,533 | $ | 381,780 | $ | 327,763 | $ | 20,624 | $ | 33,656 | $ | 3,026,222 |
(1) | The provision (credit) for loan losses excludes any impact for the change in the reserve for unfunded commitments, which represents management's estimate of the amount required to reflect the probable inherent losses on outstanding letters of credit and unused lines of credit. The reserve for unfunded commitments is presented within accrued interest and other liabilities on the consolidated statements of condition. At June 30, 2019 and 2018, and December 31, 2018, the reserve for unfunded commitments was $14,000, $16,000 and $22,000, respectively. |
Three Months Ended June 30, | Six Months Ended June 30, | Year Ended December 31, 2018 | ||||||||||||||||||
(In thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||
Provision for loan losses | $ | 1,175 | $ | 990 | $ | 1,925 | $ | 490 | $ | 845 | ||||||||||
Change in reserve for unfunded commitments | (2 | ) | (7 | ) | (8 | ) | (4 | ) | 2 | |||||||||||
Provision for credit losses | $ | 1,173 | $ | 983 | $ | 1,917 | $ | 486 | $ | 847 |
• | Grade 1 through 6 — Grades 1 through 6 represent groups of loans that are not subject to adverse criticism as defined in regulatory guidance. Loans in these groups exhibit characteristics that represent low to moderate risks, which is measured using a variety of credit risk criteria, such as cash flow coverage, debt service coverage, balance sheet leverage, liquidity, management experience, industry position, prevailing economic conditions, support from secondary sources of repayment and other credit factors that may be relevant to a specific loan. In general, these loans are supported by properly margined collateral and guarantees of principal parties. |
• | Grade 7 — Loans with potential weakness (Special Mention). Loans in this category are currently protected based on collateral and repayment capacity and do not constitute undesirable credit risk, but have potential weakness that may result in deterioration of the repayment process at some future date. This classification is used if a negative trend is evident in the obligor’s financial situation. Special mention loans do not sufficiently expose the Company to warrant adverse classification. |
• | Grade 8 — Loans with definite weakness (Substandard). Loans classified as substandard are inadequately protected by the current sound worth and paying capacity of the obligor or by collateral pledged. Borrowers experience difficulty in meeting debt repayment requirements. Deterioration is sufficient to cause the Company to look to the sale of collateral. |
• | Grade 9 — Loans with potential loss (Doubtful). Loans classified as doubtful have all the weaknesses inherent in the substandard grade with the added characteristic that the weaknesses make collection or liquidation of the loan in full highly questionable and improbable. The possibility of some loss is extremely high, but because of specific pending factors that may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined. |
• | Grade 10 — Loans with definite loss (Loss). Loans classified as loss are considered uncollectible. The loss classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the asset because recovery and collection time may be protracted. |
(In thousands) | Residential Real Estate | Commercial Real Estate | Commercial | Home Equity | Consumer | HPFC | Total | |||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||
Pass (Grades 1-6) | $ | 1,026,460 | $ | 1,229,524 | $ | 423,281 | $ | — | $ | — | $ | 26,758 | $ | 2,706,023 | ||||||||||||||
Performing | — | — | — | 320,866 | 23,284 | — | 344,150 | |||||||||||||||||||||
Special Mention (Grade 7) | 482 | 15,072 | 2,051 | — | — | 98 | 17,703 | |||||||||||||||||||||
Substandard (Grade 8) | 8,850 | 16,043 | 3,344 | — | — | 1,160 | 29,397 | |||||||||||||||||||||
Non-performing | — | — | — | 2,670 | 381 | — | 3,051 | |||||||||||||||||||||
Total | $ | 1,035,792 | $ | 1,260,639 | $ | 428,676 | $ | 323,536 | $ | 23,665 | $ | 28,016 | $ | 3,100,324 | ||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||
Pass (Grades 1-6) | $ | 983,086 | $ | 1,247,190 | $ | 374,429 | $ | — | $ | — | $ | 32,261 | $ | 2,636,966 | ||||||||||||||
Performing | — | — | — | 325,917 | 20,595 | — | 346,512 | |||||||||||||||||||||
Special Mention (Grade 7) | 887 | 7,921 | 3,688 | — | — | 123 | 12,619 | |||||||||||||||||||||
Substandard (Grade 8) | 8,893 | 14,422 | 3,663 | — | — | 1,272 | 28,250 | |||||||||||||||||||||
Non-performing | — | — | — | 1,846 | 29 | — | 1,875 | |||||||||||||||||||||
Total | $ | 992,866 | $ | 1,269,533 | $ | 381,780 | $ | 327,763 | $ | 20,624 | $ | 33,656 | $ | 3,026,222 |
(In thousands) | 30-59 Days Past Due | 60-89 Days Past Due | Greater than 90 Days | Total Past Due | Current | Total Loans Outstanding | Loans > 90 Days Past Due and Accruing | Non-Accrual Loans | ||||||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||||||
Residential real estate | $ | 1,530 | $ | 1,396 | $ | 4,301 | $ | 7,227 | $ | 1,028,565 | $ | 1,035,792 | $ | — | $ | 5,566 | ||||||||||||||||
Commercial real estate | 2,194 | 2,126 | 423 | 4,743 | 1,255,896 | 1,260,639 | — | 1,590 | ||||||||||||||||||||||||
Commercial | 1,380 | 20 | 768 | 2,168 | 426,508 | 428,676 | — | 785 | ||||||||||||||||||||||||
Home equity | 777 | 153 | 2,277 | 3,207 | 320,329 | 323,536 | — | 2,672 | ||||||||||||||||||||||||
Consumer | 57 | 14 | 367 | 438 | 23,227 | 23,665 | 14 | 367 | ||||||||||||||||||||||||
HPFC | — | 171 | 381 | 552 | 27,464 | 28,016 | — | 465 | ||||||||||||||||||||||||
Total | $ | 5,938 | $ | 3,880 | $ | 8,517 | $ | 18,335 | $ | 3,081,989 | $ | 3,100,324 | $ | 14 | $ | 11,445 | ||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||
Residential real estate | $ | 3,300 | $ | 2,046 | $ | 4,520 | $ | 9,866 | $ | 983,000 | $ | 992,866 | $ | — | $ | 5,492 | ||||||||||||||||
Commercial real estate | 1,794 | 369 | 1,108 | 3,271 | 1,266,262 | 1,269,533 | — | 1,380 | ||||||||||||||||||||||||
Commercial | 150 | 19 | 799 | 968 | 380,812 | 381,780 | — | 1,279 | ||||||||||||||||||||||||
Home equity | 907 | 607 | 1,476 | 2,990 | 324,773 | 327,763 | — | 1,846 | ||||||||||||||||||||||||
Consumer | 67 | 15 | 29 | 111 | 20,513 | 20,624 | 14 | 15 | ||||||||||||||||||||||||
HPFC | — | 183 | 423 | 606 | 33,050 | 33,656 | — | 518 | ||||||||||||||||||||||||
Total | $ | 6,218 | $ | 3,239 | $ | 8,355 | $ | 17,812 | $ | 3,008,410 | $ | 3,026,222 | $ | 14 | $ | 10,530 |
Number of Contracts | Recorded Investment | Specific Reserve | ||||||||||||||||||||
(In thousands, except number of contracts) | June 30, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | ||||||||||||||||
Residential real estate | 22 | 25 | $ | 3,342 | $ | 3,614 | $ | 381 | $ | 443 | ||||||||||||
Commercial real estate | 2 | 2 | 343 | 347 | 27 | 23 | ||||||||||||||||
Commercial | 2 | 2 | 133 | 141 | — | — | ||||||||||||||||
Home equity | 1 | 2 | 299 | 304 | 125 | 162 | ||||||||||||||||
Total | 27 | 31 | $ | 4,117 | $ | 4,406 | $ | 533 | $ | 628 |
(In thousands, except number of contracts) | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Specific Reserve | ||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||
For the three and six months ended | ||||||||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||||||
Interest rate and maturity concession | — | 1 | $ | — | $ | 163 | $ | — | $ | 186 | $ | — | $ | 39 | ||||||||||||||||
Total | — | 1 | $ | — | $ | 163 | $ | — | $ | 186 | $ | — | $ | 39 |
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||||||
(In thousands) | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||
June 30, 2019: | ||||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Residential real estate | $ | 3,286 | $ | 3,286 | $ | 524 | $ | 3,370 | $ | 26 | $ | 3,404 | $ | 56 | ||||||||||||||
Commercial real estate | 131 | 131 | 27 | 131 | 5 | 131 | 6 | |||||||||||||||||||||
Commercial | 461 | 461 | 322 | 230 | — | 339 | — | |||||||||||||||||||||
Home equity | 828 | 828 | 310 | 828 | — | 658 | — | |||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | |||||||||||||||||||||
HPFC | — | — | — | — | — | — | — | |||||||||||||||||||||
Ending balance | 4,706 | 4,706 | 1,183 | 4,559 | 31 | 4,532 | 62 | |||||||||||||||||||||
Without an allowance recorded: | ||||||||||||||||||||||||||||
Residential real estate | 1,186 | 1,310 | — | 1,234 | 7 | 1,253 | 17 | |||||||||||||||||||||
Commercial real estate | 278 | 437 | — | 278 | 4 | 452 | 7 | |||||||||||||||||||||
Commercial | 214 | 278 | — | 219 | 2 | 222 | 4 | |||||||||||||||||||||
Home equity | 59 | 197 | — | 63 | — | 84 | — | |||||||||||||||||||||
Consumer | — | — | — | — | — | 2 | — | |||||||||||||||||||||
HPFC | — | — | — | — | — | — | — | |||||||||||||||||||||
Ending balance | 1,737 | 2,222 | — | 1,794 | 13 | 2,013 | 28 | |||||||||||||||||||||
Total impaired loans | $ | 6,443 | $ | 6,928 | $ | 1,183 | $ | 6,353 | $ | 44 | $ | 6,545 | $ | 90 | ||||||||||||||
June 30, 2018: | ||||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Residential real estate | $ | 3,506 | $ | 3,506 | $ | 585 | $ | 3,525 | $ | 39 | $ | 3,636 | $ | 69 | ||||||||||||||
Commercial real estate | 351 | 351 | 23 | 1,971 | 10 | 3,121 | 11 | |||||||||||||||||||||
Commercial | — | — | — | — | — | — | — | |||||||||||||||||||||
Home equity | 465 | 465 | 226 | 306 | — | 204 | — | |||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | |||||||||||||||||||||
HPFC | — | — | — | — | — | — | — | |||||||||||||||||||||
Ending Balance | 4,322 | 4,322 | 834 | 5,802 | 49 | 6,961 | 80 | |||||||||||||||||||||
Without an allowance recorded: | ||||||||||||||||||||||||||||
Residential real estate | 1,894 | 2,200 | — | 1,704 | 7 | 1,574 | 14 | |||||||||||||||||||||
Commercial real estate | 4,742 | 5,080 | — | 2,556 | (3 | ) | 1,963 | — | ||||||||||||||||||||
Commercial | 1,611 | 2,785 | — | 1,663 | 2 | 1,705 | 4 | |||||||||||||||||||||
Home equity | 22 | 61 | — | 183 | (2 | ) | 265 | — | ||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | |||||||||||||||||||||
HPFC | — | — | — | — | — | — | — | |||||||||||||||||||||
Ending Balance | 8,269 | 10,126 | — | 6,106 | 4 | 5,507 | 18 | |||||||||||||||||||||
Total impaired loans | $ | 12,591 | $ | 14,448 | $ | 834 | $ | 11,908 | $ | 53 | $ | 12,468 | $ | 98 |
For the Year Ended | ||||||||||||||||||||
(In thousands) | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
December 31, 2018: | ||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Residential real estate | $ | 3,471 | $ | 3,471 | $ | 586 | $ | 3,591 | $ | 127 | ||||||||||
Commercial real estate | 131 | 131 | 23 | 1,969 | 11 | |||||||||||||||
Commercial | 556 | 556 | 53 | 111 | — | |||||||||||||||
Home equity | 318 | 318 | 162 | 250 | — | |||||||||||||||
Consumer | — | — | — | — | — | |||||||||||||||
HPFC | — | — | — | — | — | |||||||||||||||
Ending Balance | 4,476 | 4,476 | 824 | 5,921 | 138 | |||||||||||||||
Without an allowance recorded: | ||||||||||||||||||||
Residential real estate | 1,291 | 1,415 | — | 1,524 | 34 | |||||||||||||||
Commercial real estate | 799 | 975 | — | 2,269 | 13 | |||||||||||||||
Commercial | 230 | 293 | — | 1,379 | 8 | |||||||||||||||
Home equity | 124 | 305 | — | 195 | — | |||||||||||||||
Consumer | 6 | 13 | — | 1 | — | |||||||||||||||
HPFC | — | — | — | — | — | |||||||||||||||
Ending Balance | 2,450 | 3,001 | — | 5,368 | 55 | |||||||||||||||
Total impaired loans | $ | 6,926 | $ | 7,477 | $ | 824 | $ | 11,289 | $ | 193 |
June 30, 2019 | ||||||||||||||
(In thousands) | Balance Sheet Line Item | Operating Leases | Finance Leases | Total | ||||||||||
Right-of-use assets | Other Assets | $ | 13,120 | $ | 1,557 | $ | 14,677 | |||||||
Lease liabilities | Other Liabilities | 13,150 | 1,719 | 14,869 |
(In thousands) | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | ||||||
Lease Cost: | ||||||||
Operating lease cost (1) | $ | 345 | $ | 719 | ||||
Finance lease cost: | ||||||||
Amortization of right-of-use assets | 27 | 55 | ||||||
Interest on lease liabilities(2) | 17 | 34 | ||||||
Total finance lease cost | 44 | 89 | ||||||
Total Lease Cost | $ | 389 | $ | 808 |
(1) | Includes immaterial short-term and variable lease costs, but excludes common area maintenance costs. |
(2) | Includes immaterial variable lease costs. |
(In thousands) | Six Months Ended June 30, 2019 | |||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ | 673 | ||
Operating cash flows from finance leases | 34 | |||
Financing cash flows from finance leases | 53 | |||
Right-of-use assets obtained in exchange for lease obligations: | ||||
Operating leases(1) | $ | 13,621 | ||
Finance leases(1) | 1,612 |
(1) | Reflects right-of-use assets recorded for the period indicated, including $10.5 million of operating leases and $1.6 million of finance leases recorded upon adoption of ASU 2016-02, as of January 1, 2019. |
June 30, 2019 | |||
Weighted average remaining lease term (years): | |||
Operating leases | 16.2 years | ||
Finance leases | 22.6 years | ||
Weighted average discount rate: | |||
Operating leases | 3.41 | % | |
Finance leases | 3.94 | % |
(In thousands) | Operating Leases | Finance Leases | ||||||
2019 | $ | 715 | $ | 88 | ||||
2020 | 1,349 | 174 | ||||||
2021 | 1,272 | 174 | ||||||
2022 | 1,261 | 174 | ||||||
2023 | 1,222 | 174 | ||||||
Thereafter | 11,437 | 2,095 | ||||||
Total minimum lease payments | 17,256 | 2,879 | ||||||
Less: amount representing interest(1) | 4,106 | 1,160 | ||||||
Present value of net minimum lease payments(2) | $ | 13,150 | $ | 1,719 |
(1) | Amount necessary to reduce net minimum lease payments to present value calculated at the Company's incremental borrowing rate. |
(2) | Reflects the liability reported within other liabilities on the consolidated statements of condition. |
(In thousands) | Operating | Capital | ||||||
2019 | $ | 1,420 | $ | 179 | ||||
2020 | 941 | 179 | ||||||
2021 | 726 | 182 | ||||||
2022 | 539 | 184 | ||||||
2023 | 434 | 184 | ||||||
Thereafter | 1,268 | 1,592 | ||||||
Total minimum lease payments | $ | 5,328 | 2,500 | |||||
Less: amount representing interest(1) | 920 | |||||||
Present value of net minimum lease payments(2) | $ | 1,580 |
(1) | Amount necessary to reduce net minimum lease payments to present value calculated at the Company's incremental borrowing rate at lease inception. |
(2) | Reflects the liability reported within long-term borrowings on the consolidated statements of condition at December 31, 2018. |
(In thousands) | June 30, 2019 | December 31, 2018 | ||||||
Short-Term Borrowings: | ||||||||
Customer repurchase agreements | $ | 241,647 | $ | 245,868 | ||||
FHLBB borrowings | — | 25,000 | ||||||
Total short-term borrowings | $ | 241,647 | $ | 270,868 | ||||
Long-Term Borrowings: | ||||||||
FHLBB borrowings | $ | 10,000 | $ | 10,000 | ||||
Capital lease obligation(1) | — | 1,580 | ||||||
Total long-term borrowings | $ | 10,000 | $ | 11,580 |
(1) | Upon adoption of ASU 2016-02, effective January 1, 2019, lease liabilities are presented within other liabilities on the consolidated statements of condition. Refer to Notes 2 and 5 for further information. |
(In thousands) | June 30, 2019 | December 31, 2018 | ||||||
Customer Repurchase Agreements(1)(2): | ||||||||
Obligations of states and political subdivisions | $ | 1,700 | $ | 1,455 | ||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 116,584 | 125,590 | ||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 123,363 | 118,823 | ||||||
Total | $ | 241,647 | $ | 245,868 |
(1) | Presented within short-term borrowings on the consolidated statements of condition. |
(2) | All customer repurchase agreements mature continuously or overnight for the dates indicated. |
(In thousands) | June 30, 2019 | December 31, 2018 | ||||||
Lending-Related Instruments: | ||||||||
Commitments to extend credit | $ | 737,371 | $ | 654,575 | ||||
Standby letters of credit | 5,887 | 3,063 | ||||||
Derivative Financial Instruments: | ||||||||
Customer loan swaps | $ | 818,514 | $ | 833,030 | ||||
Interest rate swap on loans | 100,000 | — | ||||||
Junior subordinated debt interest rate swaps | 43,000 | 43,000 | ||||||
Fixed-rate mortgage interest rate lock commitments | 34,814 | 12,077 | ||||||
Forward delivery commitments | 13,088 | 4,315 | ||||||
FHLBB advance interest rate swaps | — | 25,000 |
(In thousands, except number of positions) | June 30, 2019 | December 31, 2018 | ||||||||||||||||||||||
Presentation on Consolidated Statements of Condition | Number of Positions | Notional Amount | Fair Value | Number of Positions | Notional Amount | Fair Value | ||||||||||||||||||
Receive fixed, pay variable | Accrued interest and other liabilities | 12 | $ | 42,916 | $ | (541 | ) | 57 | $ | 297,624 | $ | (7,841 | ) | |||||||||||
Receive fixed, pay variable | Other assets | 72 | 366,341 | 17,143 | 25 | 118,891 | 3,467 | |||||||||||||||||
Pay fixed, receive variable | (Accrued interest and other liabilities) / other assets | 84 | 409,257 | (16,602 | ) | 82 | 416,515 | 4,374 | ||||||||||||||||
Total | 168 | $ | 818,514 | $ | — | 164 | $ | 833,030 | $ | — |
(Dollars in thousands) | June 30, 2019 | |||||||||||||||
Trade Date | Maturity Date | Variable Index Paid | Fixed Rate Received | Presentation on Consolidated Statements of Condition | Notional Amount | Fair Value | ||||||||||
6/12/2019 | 6/10/2024 | 1-Month USD LIBOR | 1.693% | Other assets | $ | 100,000 | $ | 262 |
(Dollars in thousands) | June 30, 2019 | December 31, 2018 | ||||||||||||||||||||||
Trade Date | Maturity Date | Variable Index Received | Fixed Rate Paid | Presentation on Consolidated Statements of Condition | Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||||||||
3/18/2009 | 6/30/2021 | 3-Month USD LIBOR | 5.09% | Accrued interest and other liabilities | $ | 10,000 | $ | (383 | ) | $ | 10,000 | $ | (272 | ) | ||||||||||
7/8/2009 | 6/30/2029 | 3-Month USD LIBOR | 5.84% | Accrued interest and other liabilities | 10,000 | (2,353 | ) | 10,000 | (1,655 | ) | ||||||||||||||
5/6/2010 | 6/30/2030 | 3-Month USD LIBOR | 5.71% | Accrued interest and other liabilities | 10,000 | (2,396 | ) | 10,000 | (1,636 | ) | ||||||||||||||
3/14/2011 | 3/30/2031 | 3-Month USD LIBOR | 4.35% | Accrued interest and other liabilities | 5,000 | (1,279 | ) | 5,000 | (877 | ) | ||||||||||||||
5/4/2011 | 7/7/2031 | 3-Month USD LIBOR | 4.14% | Accrued interest and other liabilities | 8,000 | (1,895 | ) | 8,000 | (1,242 | ) | ||||||||||||||
$ | 43,000 | $ | (8,306 | ) | $ | 43,000 | $ | (5,682 | ) |
June 30, 2019 | December 31, 2018 | |||||||||||||||||
(In thousands) | Presentation on Consolidated Statements of Condition | Notional Amount | Fair Value | Notional Amount | Fair Value | |||||||||||||
Fixed-rate mortgage interest rate locks | Other assets | $ | 31,100 | $ | 516 | $ | 8,239 | $ | 95 | |||||||||
Fixed-rate mortgage interest rate locks | Accrued interest and other liabilities | 3,714 | (45 | ) | 3,838 | (28 | ) | |||||||||||
Total | $ | 34,814 | $ | 471 | $ | 12,077 | $ | 67 |
June 30, 2019 | December 31, 2018 | |||||||||||||||||
(In thousands) | Balance Sheet Location | Notional | Fair Value | Notional | Fair Value | |||||||||||||
Forward delivery commitments ("best effort") | Other Assets | $ | 11,559 | $ | 272 | $ | 2,593 | $ | 32 | |||||||||
Forward delivery commitments ("best effort") | Accrued interest and other liabilities | 1,529 | (15 | ) | 1,722 | (17 | ) | |||||||||||
Total | $ | 13,088 | $ | 257 | $ | 4,315 | $ | 15 |
(Dollars in thousands) | June 30, 2019 | December 31, 2018 | ||||||||||||||||||||||
Trade Date | Maturity Date | Variable Index Received | Fixed Rate Paid | Presentation on Consolidated Statements of Condition | Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||||||||
2/25/2015 | 2/25/2019 | 1-Month USD LIBOR | 1.74% | Other assets | $ | — | $ | — | $ | 25,000 | $ | 30 |
For The Three Months Ended June 30, | For The Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Derivatives designated as cash flow hedges: | ||||||||||||||||
Effective portion of unrealized (losses) gains recognized within OCI during the period, net of tax | $ | (1,203 | ) | $ | 414 | $ | (2,128 | ) | $ | 1,570 | ||||||
Net reclassification adjustment for effective portion of cash flow hedges included in interest expense, gross | $ | 201 | $ | 203 | $ | 320 | $ | 487 |
Gross Amount Not Offset in the Consolidated Statements of Condition | ||||||||||||||||||||||||
(In thousands) | Gross Amount Recognized in the Consolidated Statements of Condition | Gross Amount Offset in the Consolidated Statements of Condition | Net Amount Presented in the Consolidated Statements of Condition | Financial Instruments Pledged (Received)(1) | Cash Collateral Pledged (Received)(1) | Net Amount | ||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||
Customer loan swaps - commercial customer | $ | 17,143 | $ | — | $ | 17,143 | $ | — | $ | — | $ | 17,143 | ||||||||||||
Interest rate swap | 262 | — | 262 | — | — | 262 | ||||||||||||||||||
Total | $ | 17,405 | $ | — | $ | 17,405 | $ | — | $ | — | $ | 17,405 | ||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||
Customer loan swaps - dealer bank | $ | 16,602 | $ | — | $ | 16,602 | $ | — | $ | 16,602 | — | |||||||||||||
Junior subordinated debt interest rate swaps | 8,306 | — | 8,306 | — | 8,306 | — | ||||||||||||||||||
Customer loan swaps - commercial customer | 541 | — | 541 | — | — | 541 | ||||||||||||||||||
Total | $ | 25,449 | $ | — | $ | 8,847 | $ | — | $ | 24,908 | $ | 541 | ||||||||||||
Customer repurchase agreements | $ | 241,647 | $ | — | $ | 241,647 | $ | 241,647 | $ | — | $ | — | ||||||||||||
December 31, 2018 | ||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||
Customer loan swaps - dealer bank | $ | 4,374 | $ | — | $ | 4,374 | $ | — | $ | (4,374 | ) | $ | — | |||||||||||
Customer loan swaps - commercial customer | 3,467 | — | 3,467 | — | — | 3,467 | ||||||||||||||||||
FHLBB advance interest rate swaps | 30 | — | 30 | — | (30 | ) | — | |||||||||||||||||
Total | $ | 7,871 | $ | — | $ | 7,871 | $ | — | $ | (4,404 | ) | $ | 3,467 | |||||||||||
Derivative liabilities: | ||||||||||||||||||||||||
Junior subordinated debt interest rate swaps | $ | 5,682 | $ | — | $ | 5,682 | $ | — | $ | 5,682 | $ | — | ||||||||||||
Customer loan swaps - commercial customer | 7,841 | — | 7,841 | — | — | 7,841 | ||||||||||||||||||
Total | $ | 13,523 | $ | — | $ | 13,523 | $ | — | $ | 5,682 | $ | 7,841 | ||||||||||||
Customer repurchase agreements | $ | 245,868 | $ | — | $ | 245,868 | $ | 245,868 | $ | — | $ | — |
(1) | The amount presented was the lesser of the amount pledged (received) or the net amount presented in the consolidated statements of condition. |
June 30, 2019 | Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer | Minimum Regulatory Provision To Be "Well Capitalized" Under Prompt Corrective Action Provisions | December 31, 2018 | Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer | Minimum Regulatory Provision To Be "Well Capitalized" Under Prompt Corrective Action Provisions | |||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||
Camden National Corporation: | ||||||||||||||||||||||||||
Total risk-based capital ratio | $ | 448,488 | 14.12 | % | 10.50 | % | N/A | $ | 434,331 | 14.36 | % | 9.875 | % | N/A | ||||||||||||
Tier I risk-based capital ratio | 407,312 | 12.82 | % | 8.50 | % | N/A | 394,597 | 13.04 | % | 7.875 | % | N/A | ||||||||||||||
Common equity Tier I risk-based capital ratio | 364,312 | 11.47 | % | 7.00 | % | N/A | 351,597 | 11.62 | % | 6.375 | % | N/A | ||||||||||||||
Tier I leverage capital ratio | 407,312 | 9.51 | % | 4.00 | % | N/A | 394,597 | 9.53 | % | 4.00 | % | N/A | ||||||||||||||
Camden National Bank: | ||||||||||||||||||||||||||
Total risk-based capital ratio | $ | 415,658 | 13.10 | % | 10.50 | % | 10.00 | % | $ | 398,773 | 13.18 | % | 9.875 | % | 10.00 | % | ||||||||||
Tier I risk-based capital ratio | 389,482 | 12.27 | % | 8.50 | % | 8.00 | % | 374,039 | 12.36 | % | 7.875 | % | 8.00 | % | ||||||||||||
Common equity Tier I risk-based capital ratio | 389,482 | 12.27 | % | 7.00 | % | 6.50 | % | 374,039 | 12.36 | % | 6.375 | % | 6.50 | % | ||||||||||||
Tier I leverage capital ratio | 389,482 | 9.12 | % | 4.00 | % | 5.00 | % | 374,039 | 9.06 | % | 4.00 | % | 5.00 | % |
(In thousands) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Net periodic pension cost | Income Statement Presentation | 2019 | 2018 | 2019 | 2018 | |||||||||||||
Service cost | Salaries and employee benefits | $ | 99 | $ | 111 | $ | 198 | $ | 223 | |||||||||
Interest cost | Other expenses | 130 | 122 | 261 | 244 | |||||||||||||
Recognized net actuarial loss | Other expenses | 61 | 140 | 122 | 280 | |||||||||||||
Total | $ | 290 | $ | 373 | $ | 581 | $ | 747 |
(In thousands) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Net periodic postretirement benefit cost | Income Statement Presentation | 2019 | 2018 | 2019 | 2018 | |||||||||||||
Service cost | Salaries and employee benefits | $ | 12 | $ | 11 | $ | 24 | $ | 23 | |||||||||
Interest cost | Other expenses | 37 | 33 | 74 | 66 | |||||||||||||
Recognized net actuarial loss | Other expenses | 6 | 14 | 12 | 27 | |||||||||||||
Amortization of prior service credit | Other expenses | (6 | ) | (6 | ) | (12 | ) | (12 | ) | |||||||||
Total | $ | 49 | $ | 52 | $ | 98 | $ | 104 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands, except number of shares and per share data) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income | $ | 13,204 | $ | 12,217 | $ | 27,477 | $ | 25,037 | ||||||||
Dividends and undistributed earnings allocated to participating securities(1) | (26 | ) | (30 | ) | (54 | ) | (70 | ) | ||||||||
Net income available to common shareholders | $ | 13,178 | $ | 12,187 | $ | 27,423 | $ | 24,967 | ||||||||
Weighted-average common shares outstanding for basic EPS | 15,519,827 | 15,572,848 | 15,555,770 | 15,557,500 | ||||||||||||
Dilutive effect of stock-based awards(2) | 39,933 | 56,931 | 39,884 | 57,538 | ||||||||||||
Weighted-average common and potential common shares for diluted EPS | 15,559,760 | 15,629,779 | 15,595,654 | 15,615,038 | ||||||||||||
Earnings per common share: | ||||||||||||||||
Basic EPS | $ | 0.85 | $ | 0.78 | $ | 1.76 | $ | 1.60 | ||||||||
Diluted EPS | $ | 0.85 | $ | 0.78 | $ | 1.76 | $ | 1.60 |
(1) | Represents dividends paid and undistributed earnings allocated to nonvested stock-based awards that contain non-forfeitable rights to dividends. |
(2) | Represents the effect of the assumed exercise of stock options and vesting of restricted shares and restricted stock units utilizing the treasury stock method. Not included are the unvested LTIP awards, which are the Company's performance-based awards. |
(In thousands) | Fair Value | Readily Available Market Prices (Level 1) | Observable Market Data (Level 2) | Company Determined Fair Value (Level 3) | ||||||||||||
June 30, 2019 | ||||||||||||||||
Financial assets: | ||||||||||||||||
Loans held for sale | $ | 13,113 | $ | — | $ | 13,113 | $ | — | ||||||||
AFS investments: | ||||||||||||||||
Obligations of states and political subdivisions | 89,129 | — | 89,129 | — | ||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 456,377 | — | 456,377 | — | ||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 352,071 | — | 352,071 | — | ||||||||||||
Subordinated corporate bonds | 22,506 | — | 22,506 | — | ||||||||||||
Equity securities - bank stock | 830 | — | 830 | — | ||||||||||||
Customer loan swaps | 17,143 | — | 17,143 | — | ||||||||||||
Interest rate swap on loans | 262 | — | 262 | — | ||||||||||||
Fixed-rate mortgage interest rate lock commitments | 516 | — | 516 | — | ||||||||||||
Forward delivery commitments | 272 | — | 272 | — | ||||||||||||
Financial liabilities: | ||||||||||||||||
Junior subordinated debt interest rate swaps | 8,306 | — | 8,306 | — | ||||||||||||
Customer loan swaps | 17,143 | — | 17,143 | — | ||||||||||||
Fixed-rate mortgage interest rate lock commitments | 45 | — | 45 | — | ||||||||||||
Forward delivery commitments | 15 | — | 15 | — | ||||||||||||
December 31, 2018 | ||||||||||||||||
Financial assets: | ||||||||||||||||
Loans held for sale | $ | 4,403 | $ | — | $ | 4,403 | $ | — | ||||||||
AFS investments: | ||||||||||||||||
Obligations of states and political subdivisions | 93,752 | — | 93,752 | — | ||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | 453,672 | — | 453,672 | — | ||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | 342,894 | — | 342,894 | — | ||||||||||||
Subordinated corporate bonds | 20,374 | — | 20,374 | — | ||||||||||||
Equity securities - bank stock | 746 | — | 746 | — | ||||||||||||
Customer loan swaps | 7,841 | — | 7,841 | — | ||||||||||||
Fixed-rate mortgage interest rate lock commitments | 95 | — | 95 | — | ||||||||||||
Forward delivery commitments | 32 | — | 32 | — | ||||||||||||
FHLBB advance interest rate swaps | 30 | — | 30 | — | ||||||||||||
Financial liabilities: | ||||||||||||||||
Junior subordinated debt interest rate swaps | 5,682 | — | 5,682 | — | ||||||||||||
Customer loan swaps | 7,841 | — | 7,841 | — | ||||||||||||
Fixed-rate mortgage interest rate lock commitments | 28 | — | 28 | — | ||||||||||||
Forward delivery commitments | 17 | — | 17 | — |
(In thousands) | Fair Value | Readily Available Market Prices (Level 1) | Observable Market Data (Level 2) | Company Determined Fair Value (Level 3) | ||||||||||||
June 30, 2019 | ||||||||||||||||
Financial assets: | ||||||||||||||||
Collateral-dependent impaired loans | $ | 925 | $ | — | $ | — | $ | 925 | ||||||||
Non-financial assets: | ||||||||||||||||
OREO | 130 | — | — | 130 | ||||||||||||
December 31, 2018 | ||||||||||||||||
Financial assets: | ||||||||||||||||
Collateral-dependent impaired loans | $ | 522 | $ | — | $ | — | $ | 522 | ||||||||
Non-financial assets: | ||||||||||||||||
OREO | 130 | — | — | 130 |
(Dollars in thousands) | Fair Value | Valuation Methodology | Unobservable input | Discount Range (Weighted-Average) | |||||||
June 30, 2019 | |||||||||||
Collateral-dependent impaired loans: | |||||||||||
Partially charged-off | $ | 44 | Market approach appraisal of collateral | Management adjustment of appraisal | 0% | (0%) | |||||
Estimated selling costs | 10% | (10%) | |||||||||
Specifically reserved | $ | 881 | Market approach appraisal of collateral | Management adjustment of appraisal | 0-39% | (16%) | |||||
Estimated selling costs | 10-13% | (11%) | |||||||||
OREO | $ | 130 | Market approach appraisal of collateral | Management adjustment of appraisal | 19% | (19%) | |||||
Estimated selling cost | 10% | (10%) | |||||||||
December 31, 2018 | |||||||||||
Collateral-dependent impaired loans: | |||||||||||
Partially charged-off | $ | 50 | Market approach appraisal of collateral | Management adjustment of appraisal | 0% | (0%) | |||||
Estimated selling costs | 10% | (10%) | |||||||||
Specifically reserved | $ | 472 | Market approach appraisal of collateral | Management adjustment of appraisal | 0% | (0%) | |||||
Estimated selling costs | 10% | (10%) | |||||||||
OREO | $ | 130 | Market approach appraisal of collateral | Management adjustment of appraisal | 19% | (19%) | |||||
Estimated selling cost | 10% | (10%) |
(In thousands) | Carrying Amount | Fair Value | Readily Available Market Prices (Level 1) | Observable Market Prices (Level 2) | Company Determined Market Prices (Level 3) | |||||||||||||||
June 30, 2019 | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
HTM securities | $ | 1,304 | $ | 1,335 | $ | — | $ | 1,335 | $ | — | ||||||||||
Residential real estate loans(1) | 1,029,543 | 1,022,119 | — | — | 1,022,119 | |||||||||||||||
Commercial real estate loans(1) | 1,248,487 | 1,224,937 | — | — | 1,224,937 | |||||||||||||||
Commercial loans(1)(2) | 452,305 | 444,719 | — | — | 444,719 | |||||||||||||||
Home equity loans(1) | 320,544 | 314,030 | — | — | 314,030 | |||||||||||||||
Consumer loans(1) | 23,282 | 21,621 | — | — | 21,621 | |||||||||||||||
Servicing assets | 795 | 1,450 | — | — | 1,450 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Time deposits | $ | 754,786 | $ | 753,533 | $ | — | $ | 753,533 | $ | — | ||||||||||
Short-term borrowings | 241,647 | 241,400 | — | 241,400 | — | |||||||||||||||
Long-term borrowings | 10,000 | 9,974 | — | 9,974 | — | |||||||||||||||
Subordinated debentures | 58,991 | 49,728 | — | 49,728 | — | |||||||||||||||
December 31, 2018 | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
HTM securities | $ | 1,307 | $ | 1,291 | $ | — | $ | 1,291 | $ | — | ||||||||||
Residential real estate loans(1) | 986,795 | 957,957 | — | — | 957,957 | |||||||||||||||
Commercial real estate loans(1) | 1,257,879 | 1,218,436 | — | — | 1,218,436 | |||||||||||||||
Commercial loans(1)(2) | 411,479 | 404,805 | — | — | 404,805 | |||||||||||||||
Home equity loans(1) | 324,967 | 317,359 | — | — | 317,359 | |||||||||||||||
Consumer loans(1) | 20,390 | 18,969 | — | — | 18,969 | |||||||||||||||
Servicing assets | 831 | 1,677 | — | — | 1,677 | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Time deposits | $ | 661,281 | $ | 654,954 | $ | — | $ | 654,954 | $ | — | ||||||||||
Short-term borrowings | 270,868 | 270,598 | — | 270,598 | — | |||||||||||||||
Long-term borrowings | 11,580 | 11,573 | — | 11,573 | — | |||||||||||||||
Subordinated debentures | 59,067 | 49,060 | — | 49,060 | — |
(1) | The presented carrying amount is net of the allocated ALL. |
(2) | Includes the HPFC loan portfolio. |
• | weakness in the United States economy in general and the regional and local economies within the New England region and Maine, which could result in a deterioration of credit quality, an increase in the allowance for loan losses or a reduced demand for the Company’s credit or fee-based products and services; |
• | changes in trade, monetary, and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; |
• | inflation, interest rate, market, and monetary fluctuations; |
• | competitive pressures, including continued industry consolidation and the increased financial services provided by non-banks; |
• | volatility in the securities markets that could adversely affect the value or credit quality of the Company’s assets, impairment of goodwill, the availability and terms of funding necessary to meet the Company’s liquidity needs, and which could lead to impairment in the value of securities in the Company's investment portfolio; |
• | changes in information technology and other operational risks, including cybersecurity, that require increased capital spending; |
• | changes in consumer spending and savings habits; |
• | changes in tax, banking, securities and insurance laws and regulations; and |
• | changes in accounting policies, practices and standards, as may be adopted by the regulatory agencies as well as the Financial Accounting Standards Board ("FASB"), and other accounting standard setters. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(Dollars in thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income, as presented | $ | 13,204 | $ | 12,217 | $ | 27,477 | $ | 25,037 | ||||||||
Add: amortization of intangible assets, net of tax(1) | 139 | 143 | 278 | 286 | ||||||||||||
Net income, adjusted for amortization of intangible assets | $ | 13,343 | $ | 12,360 | $ | 27,755 | $ | 25,323 | ||||||||
Average equity, as presented | $ | 455,529 | $ | 404,874 | $ | 448,318 | $ | 403,756 | ||||||||
Less: average goodwill and other intangible assets | (98,660 | ) | (99,377 | ) | (98,749 | ) | (99,472 | ) | ||||||||
Average tangible equity | $ | 356,869 | $ | 305,497 | $ | 349,569 | $ | 304,284 | ||||||||
Return on average equity | 11.63 | % | 12.10 | % | 12.36 | % | 12.50 | % | ||||||||
Return on average tangible equity | 15.00 | % | 16.23 | % | 16.01 | % | 16.78 | % |
(1) | Assumed a 21% tax rate. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(Dollars in thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Non-interest expense, as presented | $ | 23,958 | $ | 22,895 | $ | 46,741 | $ | 45,199 | ||||||||
Net interest income, as presented | $ | 31,573 | $ | 29,481 | $ | 63,468 | $ | 58,383 | ||||||||
Add: effect of tax-exempt income(1) | 248 | 257 | 491 | 511 | ||||||||||||
Non-interest income, as presented | 10,037 | 9,501 | 19,426 | 18,305 | ||||||||||||
Less: net gain on sale of securities | (27 | ) | (31 | ) | (27 | ) | (31 | ) | ||||||||
Adjusted net interest income plus non-interest income | $ | 41,831 | $ | 39,208 | $ | 83,358 | $ | 77,168 | ||||||||
GAAP efficiency ratio | 57.58 | % | 58.73 | % | 56.39 | % | 58.94 | % | ||||||||
Non-GAAP efficiency ratio | 57.27 | % | 58.39 | % | 56.07 | % | 58.57 | % |
(1) | Assumed a 21% tax rate. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Net interest income, as presented | $ | 31,573 | $ | 29,481 | $ | 63,468 | $ | 58,383 | ||||||||
Add: effect of tax-exempt income(1) | 248 | 257 | 491 | 511 | ||||||||||||
Net interest income, tax equivalent | $ | 31,821 | $ | 29,738 | $ | 63,959 | $ | 58,894 |
(1) | Assumed a 21% tax rate. |
(In thousands, except number of shares, per share data and ratios) | June 30, 2019 | December 31, 2018 | ||||||
Tangible Book Value Per Share: | ||||||||
Shareholders’ equity, as presented | $ | 467,759 | $ | 435,825 | ||||
Less: goodwill and other intangible assets | (98,574 | ) | (98,927 | ) | ||||
Tangible shareholders’ equity | $ | 369,185 | $ | 336,898 | ||||
Shares outstanding at period end | 15,457,480 | 15,591,914 | ||||||
Book value per share | $ | 30.26 | $ | 27.95 | ||||
Tangible book value per share | $ | 23.88 | $ | 21.61 | ||||
Tangible Common Equity Ratio: | ||||||||
Total assets | $ | 4,447,038 | $ | 4,297,435 | ||||
Less: goodwill and other intangible assets | (98,574 | ) | (98,927 | ) | ||||
Tangible assets | $ | 4,348,464 | $ | 4,198,508 | ||||
Common equity ratio | 10.52 | % | 10.14 | % | ||||
Tangible common equity ratio | 8.49 | % | 8.02 | % |
• | A return on average assets for the three and six months ended June 30, 2019, of 1.21% and 1.27%, respectively, compared to 1.19% and 1.24% for the same periods last year; |
• | A return on average equity for the three and six months ended June 30, 2019, of 11.63% and 12.36%, respectively, compared to 12.10% and 12.50% for the same periods last year; and |
• | A return on average tangible equity (non-GAAP) for the three and six months ended June 30, 2019, of 15.00% and 16.01%, respectively, compared to 16.23% and 16.78% for the same periods last year. |
• | The increase in interest income on a fully-taxable equivalent basis for the second quarter of 2019 over the second quarter of 2018 was due to an increase in our interest-earning asset yield of 28 basis points to 4.18% for the second quarter of 2019, and an increase in average interest-earnings assets of $250.7 million, or 7%, over the same period. Average loan balances grew $252.2 million, or 9%, over this period to $3.1 billion for the second quarter of 2019, and our average loan yield expanded 25 basis points over this period to 4.68% for the second quarter of 2019. The increase in average yield reflects the increase in interest rates period to period as variable rate loans reprice and new loans are originated at higher rates. |
• | The increase in interest expense for the second quarter of 2019 over the second quarter of 2018 was driven by the 29 basis point increase in funding cost over this period to 1.13% for the second quarter of 2019, due to the increase in market rates between periods and competition for deposits. Total average deposits, excluding brokered deposits, increased $404.0 million, or 15%, over the second quarter of 2018 to $3.2 billion for the second quarter of 2019 with checking account growth of $292.6 million, or 22%. The growth in average deposit balances and higher interest rates between periods of 38 basis points drove an increase in interest expense on deposits, excluding brokered deposits, between periods of $3.5 million, or 104%. Strong average deposit growth resulted in lower borrowing levels for the second quarter of 2019, with a decrease in average borrowings of $183.7 million, or 21%, between periods |
• | The increase in interest income on a fully-taxable equivalent basis for the six months ended June 30, 2019, over the same period last year was due to an increase in our interest-earning asset yield of 35 basis points to 4.19% for the six months ended June 30, 2019, and an increase in average interest-earnings assets of $262.5 million, or 7%, over the same period. Average loan balances grew $260.9 million, or 9%, over this period to $3.1 billion for the six months ended June 30, 2019, and our average loan yield expanded 32 basis points over this period to 4.69% for the six months ended June 30, 2019. The increase in average yield reflects the increase in interest rates period to period as variable rate loans reprice and new loans are originated at higher rates. |
• | The increase in interest expense for the six months ended June 30, 2019 over the same period last year was driven by the 32 basis point increase in funding cost over this period to 1.10% for the six months ended June 30, 2019 due to the increase in market interest rates between periods and competition for deposits. Total average deposits, excluding brokered deposits, increased $375.9 million, or 14%, to $3.1 billion for the six months ended June 30, 2019 with checking account growth of $291.1, or 22%. The growth in average deposit balances and higher interest rates between periods of 37 basis points drove an increase in interest expense on deposits, excluding brokered deposits, between |
Quarterly Average Balance, Interest and Yield/Rate Analysis | ||||||||||||||||||||||
For The Three Months Ended | ||||||||||||||||||||||
June 30, 2019 | June 30, 2018 | |||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest | Yield/Rate | Average Balance | Interest | Yield/Rate | ||||||||||||||||
Assets | ||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||
Interest-bearing deposits in other banks and other interest-earning assets | $ | 59,901 | $ | 355 | 2.34 | % | $ | 58,500 | $ | 232 | 1.57 | % | ||||||||||
Investments - taxable | 839,714 | 5,366 | 2.56 | % | 834,675 | 4,832 | 2.32 | % | ||||||||||||||
Investments - nontaxable(1) | 90,087 | 790 | 3.51 | % | 98,015 | 832 | 3.40 | % | ||||||||||||||
Loans(2): | ||||||||||||||||||||||
Residential real estate | 1,032,215 | 11,200 | 4.34 | % | 884,977 | 9,297 | 4.20 | % | ||||||||||||||
Commercial real estate | 1,255,172 | 14,840 | 4.68 | % | 1,180,421 | 12,987 | 4.35 | % | ||||||||||||||
Commercial(1) | 389,166 | 4,639 | 4.72 | % | 351,711 | 3,928 | 4.42 | % | ||||||||||||||
Municipal(1) | 20,117 | 179 | 3.56 | % | 21,993 | 172 | 3.13 | % | ||||||||||||||
Consumer and home equity | 347,141 | 4,732 | 5.47 | % | 340,782 | 4,254 | 5.01 | % | ||||||||||||||
HPFC | 29,472 | 584 | 7.83 | % | 41,182 | 812 | 7.80 | % | ||||||||||||||
Total loans | 3,073,283 | 36,174 | 4.68 | % | 2,821,066 | 31,450 | 4.43 | % | ||||||||||||||
Total interest-earning assets | 4,062,985 | 42,685 | 4.18 | % | 3,812,256 | 37,346 | 3.90 | % | ||||||||||||||
Cash and due from banks | 40,835 | 45,836 | ||||||||||||||||||||
Other assets | 300,256 | 272,314 | ||||||||||||||||||||
Less: ALL | (25,487 | ) | (23,398 | ) | ||||||||||||||||||
Total assets | $ | 4,378,589 | $ | 4,107,008 | ||||||||||||||||||
Liabilities & Shareholders' Equity | ||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||
Non-interest checking | $ | 485,724 | $ | — | — | % | $ | 464,164 | $ | — | — | % | ||||||||||
Interest checking | 1,110,567 | 2,791 | 1.01 | % | 839,510 | 973 | 0.47 | % | ||||||||||||||
Savings | 476,104 | 104 | 0.09 | % | 483,192 | 75 | 0.06 | % | ||||||||||||||
Money market | 581,638 | 1,863 | 1.28 | % | 507,545 | 1,042 | 0.82 | % | ||||||||||||||
Certificates of deposit | 516,972 | 2,064 | 1.60 | % | 472,637 | 1,246 | 1.06 | % | ||||||||||||||
Total deposits | 3,171,005 | 6,822 | 0.86 | % | 2,767,048 | 3,336 | 0.48 | % | ||||||||||||||
Borrowings: | ||||||||||||||||||||||
Brokered deposits | 370,448 | 2,334 | 2.53 | % | 239,105 | 1,123 | 1.89 | % | ||||||||||||||
Customer repurchase agreements | 246,935 | 799 | 1.30 | % | 247,789 | 639 | 1.03 | % | ||||||||||||||
Subordinated debentures | 58,985 | 823 | 5.60 | % | 58,970 | 851 | 5.79 | % | ||||||||||||||
Other borrowings | 15,940 | 86 | 2.17 | % | 330,096 | 1,659 | 2.02 | % | ||||||||||||||
Total borrowings | 692,308 | 4,042 | 2.34 | % | 875,960 | 4,272 | 1.96 | % | ||||||||||||||
Total funding liabilities | 3,863,313 | 10,864 | 1.13 | % | 3,643,008 | 7,608 | 0.84 | % | ||||||||||||||
Other liabilities | 59,747 | 59,126 | ||||||||||||||||||||
Shareholders' equity | 455,529 | 404,874 | ||||||||||||||||||||
Total liabilities & shareholders' equity | $ | 4,378,589 | $ | 4,107,008 | ||||||||||||||||||
Net interest income (fully-taxable equivalent) | 31,821 | 29,738 | ||||||||||||||||||||
Less: fully-taxable equivalent adjustment | (248 | ) | (257 | ) | ||||||||||||||||||
Net interest income | $ | 31,573 | $ | 29,481 | ||||||||||||||||||
Net interest rate spread (fully-taxable equivalent) | 3.05 | % | 3.06 | % | ||||||||||||||||||
Net interest margin (fully-taxable equivalent) | 3.11 | % | 3.10 | % | ||||||||||||||||||
Net interest margin (fully-taxable equivalent), excluding fair value mark accretion and collection of previously charged-off acquired loans(3) | 3.07 | % | 3.04 | % |
(1) | Reported on tax-equivalent basis calculated using a 21% tax rate, including certain commercial loans. |
(2) | Non-accrual loans and loans held for sale are included in total average loans. |
(3) | Excludes the impact of the fair value mark accretion on loans and CDs generated in purchase accounting and collection of previously charged-off acquired loans for the three months ended June 30, 2019 and 2018, totaling $439,000 and $578,000, respectively. |
Year-To-Date Average Balance, Interest and Yield/Rate Analysis | ||||||||||||||||||||||
For The Six Months Ended | ||||||||||||||||||||||
June 30, 2019 | June 30, 2018 | |||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest | Yield/Rate | Average Balance | Interest | Yield/Rate | ||||||||||||||||
Assets | ||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||
Interest-bearing deposits in other banks and other interest-earning assets | $ | 48,301 | $ | 552 | 2.27 | % | $ | 55,254 | $ | 416 | 1.50 | % | ||||||||||
Investments - taxable | 845,583 | 10,814 | 2.56 | % | 830,624 | 9,420 | 2.27 | % | ||||||||||||||
Investments - nontaxable(1) | 92,386 | 1,606 | 3.48 | % | 98,783 | 1,683 | 3.41 | % | ||||||||||||||
Loans(2): | ||||||||||||||||||||||
Residential real estate | 1,020,316 | 22,038 | 4.32 | % | 872,947 | 18,156 | 4.16 | % | ||||||||||||||
Commercial real estate | 1,268,264 | 30,006 | 4.71 | % | 1,176,034 | 25,287 | 4.28 | % | ||||||||||||||
Commercial(1) | 379,552 | 8,983 | 4.71 | % | 350,842 | 7,665 | 4.35 | % | ||||||||||||||
Municipal(1) | 17,738 | 315 | 3.58 | % | 19,648 | 313 | 3.22 | % | ||||||||||||||
Consumer and home equity | 347,097 | 9,403 | 5.46 | % | 340,929 | 8,253 | 4.88 | % | ||||||||||||||
HPFC | 30,814 | 1,220 | 7.87 | % | 42,462 | 1,685 | 7.89 | % | ||||||||||||||
Total loans | 3,063,781 | 71,965 | 4.69 | % | 2,802,862 | 61,359 | 4.37 | % | ||||||||||||||
Total interest-earning assets | 4,050,051 | 84,937 | 4.19 | % | 3,787,523 | 72,878 | 3.84 | % | ||||||||||||||
Cash and due from banks | 40,600 | 44,164 | ||||||||||||||||||||
Other assets | 293,114 | 273,442 | ||||||||||||||||||||
Less: ALL | (25,135 | ) | (23,799 | ) | ||||||||||||||||||
Total assets | $ | 4,358,630 | $ | 4,081,330 | ||||||||||||||||||
Liabilities & Shareholders' Equity | ||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||
Non-interest checking | $ | 488,040 | $ | — | — | % | $ | 458,428 | $ | — | — | % | ||||||||||
Interest checking | 1,098,003 | 5,411 | 0.99 | % | 836,477 | 1,748 | 0.42 | % | ||||||||||||||
Savings | 480,849 | 199 | 0.08 | % | 488,397 | 152 | 0.06 | % | ||||||||||||||
Money market | 582,158 | 3,603 | 1.25 | % | 497,670 | 1,832 | 0.74 | % | ||||||||||||||
Certificates of deposit | 480,244 | 3,529 | 1.48 | % | 472,426 | 2,415 | 1.03 | % | ||||||||||||||
Total deposits | 3,129,294 | 12,742 | 0.82 | % | 2,753,398 | 6,147 | 0.45 | % | ||||||||||||||
Borrowings: | ||||||||||||||||||||||
Brokered deposits | 388,045 | 4,837 | 2.51 | % | 238,988 | 2,061 | 1.74 | % | ||||||||||||||
Customer repurchase agreements | 242,740 | 1,528 | 1.27 | % | 242,452 | 1,062 | 0.88 | % | ||||||||||||||
Subordinated debentures | 58,996 | 1,540 | 5.26 | % | 58,950 | 1,698 | 5.81 | % | ||||||||||||||
Other borrowings | 30,237 | 331 | 2.21 | % | 329,124 | 3,016 | 1.85 | % | ||||||||||||||
Total borrowings | 720,018 | 8,236 | 2.31 | % | 869,514 | 7,837 | 1.82 | % | ||||||||||||||
Total funding liabilities | 3,849,312 | 20,978 | 1.10 | % | 3,622,912 | 13,984 | 0.78 | % | ||||||||||||||
Other liabilities | 61,000 | 54,662 | ||||||||||||||||||||
Shareholders' equity | 448,318 | 403,756 | ||||||||||||||||||||
Total liabilities & shareholders' equity | $ | 4,358,630 | $ | 4,081,330 | ||||||||||||||||||
Net interest income (fully-taxable equivalent) | 63,959 | 58,894 | ||||||||||||||||||||
Less: fully-taxable equivalent adjustment | (491 | ) | (511 | ) | ||||||||||||||||||
Net interest income | $ | 63,468 | $ | 58,383 | ||||||||||||||||||
Net interest rate spread (fully-taxable equivalent) | 3.09 | % | 3.06 | % | ||||||||||||||||||
Net interest margin (fully-taxable equivalent) | 3.14 | % | 3.10 | % | ||||||||||||||||||
Net interest margin (fully-taxable equivalent), excluding fair value mark accretion and collection of previously charged-off acquired loans(3) | 3.10 | % | 3.04 | % |
(1) | Reported on tax-equivalent basis calculated using a 21% tax rate, including certain commercial loans. |
(2) | Non-accrual loans and loans held for sale are included in total average loans. |
(3) | Excludes the impact of the fair value mark accretion on loans and CDs generated in purchase accounting and collection of previously charged-off acquired loans for the six months ended June 30, 2019 and 2018, totaling $829,000 and $1.1 million, respectively. |
For The Three Months Ended June 30, 2019 vs. June 30, 2018 | For The Six Months Ended June 30, 2019 vs. June 30, 2018 | |||||||||||||||||||||||
Increase (Decrease) Due to: | Net Increase (Decrease) | Increase (Decrease) Due to: | Net Increase (Decrease) | |||||||||||||||||||||
(In thousands) | Volume | Rate(1) | Volume | Rate(2) | ||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Interest-bearing deposits in other banks and other interest-earning assets | $ | 5 | $ | 118 | $ | 123 | $ | (52 | ) | $ | 188 | $ | 136 | |||||||||||
Investments – taxable | 29 | 505 | 534 | 170 | 1,224 | 1,394 | ||||||||||||||||||
Investments – nontaxable | (67 | ) | 25 | (42 | ) | (109 | ) | 32 | (77 | ) | ||||||||||||||
Residential real estate | 1,546 | 357 | 1,903 | 3,065 | 817 | 3,882 | ||||||||||||||||||
Commercial real estate | 822 | 1,031 | 1,853 | 1,985 | 2,734 | 4,719 | ||||||||||||||||||
Commercial | 418 | 293 | 711 | 628 | 690 | 1,318 | ||||||||||||||||||
Municipal | (15 | ) | 22 | 7 | (30 | ) | 32 | 2 | ||||||||||||||||
Consumer and home equity | 79 | 399 | 478 | 149 | 1,001 | 1,150 | ||||||||||||||||||
HPFC | (231 | ) | 3 | (228 | ) | (462 | ) | (3 | ) | (465 | ) | |||||||||||||
Total interest income | 2,586 | 2,753 | 5,339 | 5,344 | 6,715 | 12,059 | ||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest checking | 318 | 1,500 | 1,818 | 545 | 3,118 | 3,663 | ||||||||||||||||||
Savings | (1 | ) | 30 | 29 | (2 | ) | 49 | 47 | ||||||||||||||||
Money market | 151 | 670 | 821 | 310 | 1,461 | 1,771 | ||||||||||||||||||
Certificates of deposit | 117 | 701 | 818 | 40 | 1,074 | 1,114 | ||||||||||||||||||
Brokered deposits | 619 | 592 | 1,211 | 1,286 | 1,490 | 2,776 | ||||||||||||||||||
Customer repurchase agreements | (2 | ) | 162 | 160 | 1 | 465 | 466 | |||||||||||||||||
Subordinated debentures | — | (28 | ) | (28 | ) | 1 | (159 | ) | (158 | ) | ||||||||||||||
Other borrowings | (1,582 | ) | 9 | (1,573 | ) | (2,742 | ) | 57 | (2,685 | ) | ||||||||||||||
Total interest expense | (380 | ) | 3,636 | 3,256 | (561 | ) | 7,555 | 6,994 | ||||||||||||||||
Net interest income (fully-taxable equivalent) | $ | 2,966 | $ | (883 | ) | $ | 2,083 | $ | 5,905 | $ | (840 | ) | $ | 5,065 |
(1) | Presented within increase (decrease) due to rate for the three months ended June 30, 2019 compared to the three months ended June 30, 2018 was a decrease in net interest income on a fully-taxable equivalent basis of $140,000 due to a decrease in fair value mark accretion on loans and CDs generated in purchase accounting and collection of previously charged-off acquired loans. |
(2) | Presented within increase (decrease) due to rate for the six months ended June 30, 2019 compared to the six months ended June 30, 2018 was a decrease in net interest income on a fully-taxable equivalent basis of $307,000 due to a decrease in fair value mark accretion on loans and CDs generated in purchase accounting and collection of previously charged-off acquired loans. |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||
(Dollars in thousands) | 2019 | 2018 | $ | % | 2019 | 2018 | $ | % | ||||||||||||||||||||||
Debit card income | $ | 2,281 | $ | 2,126 | $ | 155 | 7 | % | $ | 4,291 | $ | 4,055 | $ | 236 | 6 | % | ||||||||||||||
Service charges on deposit accounts | 2,209 | 2,069 | 140 | 7 | % | 4,232 | 4,036 | 196 | 5 | % | ||||||||||||||||||||
Mortgage banking income, net | 1,742 | 1,609 | 133 | 8 | % | 2,994 | 3,000 | (6 | ) | — | % | |||||||||||||||||||
Income from fiduciary services | 1,545 | 1,407 | 138 | 10 | % | 2,937 | 2,690 | 247 | 9 | % | ||||||||||||||||||||
Brokerage and insurance commissions | 732 | 685 | 47 | 7 | % | 1,317 | 1,335 | (18 | ) | (1 | )% | |||||||||||||||||||
Bank-owned life insurance | 603 | 609 | (6 | ) | (1 | )% | 1,197 | 1,217 | (20 | ) | (2 | )% | ||||||||||||||||||
Customer loan swap fees(1) | 285 | 180 | 105 | 58 | % | 810 | 267 | 543 | 203 | % | ||||||||||||||||||||
Net gain on sale of securities | 27 | 31 | (4 | ) | (13 | )% | 27 | 31 | (4 | ) | (13 | )% | ||||||||||||||||||
Other income | 613 | 785 | (172 | ) | (22 | )% | 1,621 | 1,674 | (53 | ) | (3 | )% | ||||||||||||||||||
Total non-interest income | $ | 10,037 | $ | 9,501 | $ | 536 | 6 | % | $ | 19,426 | $ | 18,305 | $ | 1,121 | 6 | % | ||||||||||||||
Non-interest income as a percentage of total revenues | 24 | % | 24 | % | 23 | % | 24 | % |
(1) | Customer loan swap fees: The increase for the three and six months ended June 30, 2019, was driven by strong originations of commercial real estate loans that participated in the back-to-back loan swap program of $22.5 million and $63.3 million, respectively, compared to $12.5 million and $21.2 million for the same periods last year. |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||
(Dollars in thousands) | 2019 | 2018 | $ | % | 2019 | 2018 | $ | % | ||||||||||||||||||||||
Salaries and employee benefits(1) | $ | 13,461 | $ | 12,728 | $ | 733 | 6 | % | $ | 26,439 | $ | 25,290 | $ | 1,149 | 5 | % | ||||||||||||||
Furniture, equipment and data processing | 2,723 | 2,549 | 174 | 7 | % | 5,403 | 5,135 | 268 | 5 | % | ||||||||||||||||||||
Net occupancy costs | 1,639 | 1,625 | 14 | 1 | % | 3,553 | 3,498 | 55 | 2 | % | ||||||||||||||||||||
Consulting and professional fees | 974 | 1,116 | (142 | ) | (13 | )% | 1,787 | 1,920 | (133 | ) | (7 | )% | ||||||||||||||||||
Debit card expense | 883 | 776 | 107 | 14 | % | 1,706 | 1,506 | 200 | 13 | % | ||||||||||||||||||||
Regulatory assessments | 437 | 501 | (64 | ) | (13 | )% | 909 | 1,000 | (91 | ) | (9 | )% | ||||||||||||||||||
Amortization of intangible assets | 176 | 181 | (5 | ) | (3 | )% | 352 | 362 | (10 | ) | (3 | )% | ||||||||||||||||||
Other real estate owned and collection costs, net(2) | 409 | 251 | 158 | 63 | % | 102 | 326 | (224 | ) | (69 | )% | |||||||||||||||||||
Other expenses | 3,256 | 3,168 | 88 | 3 | % | 6,490 | 6,162 | 328 | 5 | % | ||||||||||||||||||||
Total non-interest expense | $ | 23,958 | $ | 22,895 | $ | 1,063 | 5 | % | $ | 46,741 | $ | 45,199 | $ | 1,542 | 3 | % | ||||||||||||||
GAAP efficiency ratio | 57.58 | % | 58.73 | % | 56.39 | % | 58.94 | % | ||||||||||||||||||||||
Non-GAAP efficiency ratio | 57.27 | % | 58.39 | % | 56.07 | % | 58.57 | % |
(2) | Other real estate owned and collection costs, net: The increase for the second quarter of 2019, compared to the second quarter of 2018, was largely driven by $360,000 of expense recorded in the second quarter of 2019 pertaining to one matter. Otherwise, OREO and collection costs for the second quarter of 2019 were favorable, compared to the same period last year, driven by continued strong asset quality. |
• | The purchase of $102.4 million of investments in the first half of 2019. |
• | A net increase in the fair value of the AFS debt securities portfolio of $27.8 million driven by the change in general market conditions, specifically a decrease in long-term interest rates at June 30, 2019, compared to December 31, 2018. |
• | Partially offset by paydowns and calls of $122.4 million. |
June 30, 2019 | December 31, 2018 | Change | |||||||||||||
(Dollars in thousands) | ($) | (%) | |||||||||||||
Residential real estate | $ | 1,035,792 | $ | 992,866 | $ | 42,926 | 4 | % | |||||||
Commercial real estate | 1,260,639 | 1,269,533 | (8,894 | ) | (1 | )% | |||||||||
Commercial | 428,676 | 381,780 | 46,896 | 12 | % | ||||||||||
Consumer and home equity | 347,201 | 348,387 | (1,186 | ) | — | % | |||||||||
HPFC | 28,016 | 33,656 | (5,640 | ) | (17 | )% | |||||||||
Total loans | $ | 3,100,324 | $ | 3,026,222 | $ | 74,102 | 2 | % | |||||||
Commercial Loan Portfolio | $ | 1,717,331 | $ | 1,684,969 | $ | 32,362 | 2 | % | |||||||
Retail Loan Portfolio | $ | 1,382,993 | $ | 1,341,253 | $ | 41,740 | 3 | % | |||||||
Commercial Portfolio Mix | 55 | % | 56 | % | |||||||||||
Retail Portfolio Mix | 45 | % | 44 | % |
(Dollars in thousands) | June 30, 2019 | December 31, 2018 | ||||||
Non-accrual loans: | ||||||||
Residential real estate | $ | 5,566 | $ | 5,492 | ||||
Commercial real estate | 1,590 | 1,380 | ||||||
Commercial | 785 | 1,279 | ||||||
Consumer and home equity | 3,039 | 1,861 | ||||||
HPFC | 465 | 518 | ||||||
Total non-accrual loans | 11,445 | 10,530 | ||||||
Accruing loans past due 90 days | 14 | 14 | ||||||
Accruing TDRs not included above | 3,511 | 3,893 | ||||||
Total non-performing loans | 14,970 | 14,437 | ||||||
Other real estate owned | 130 | 130 | ||||||
Total non-performing assets | $ | 15,100 | $ | 14,567 | ||||
Non-accrual loans to total loans | 0.37 | % | 0.35 | % | ||||
Non-performing loans to total loans | 0.48 | % | 0.48 | % | ||||
ALL to non-performing loans | 174.77 | % | 171.17 | % | ||||
Non-performing assets to total assets | 0.34 | % | 0.34 | % | ||||
ALL to non-performing assets | 173.26 | % | 169.64 | % |
(Dollars in thousands) | June 30, 2019 | December 31, 2018 | ||||||
Accruing loans 30-89 days past due: | ||||||||
Residential real estate | $ | 2,536 | $ | 4,833 | ||||
Commercial real estate | 3,378 | 2,130 | ||||||
Commercial | 1,400 | 169 | ||||||
Consumer and home equity | 907 | 1,467 | ||||||
HPFC | 171 | 183 | ||||||
Total | $ | 8,392 | $ | 8,782 | ||||
Accruing loans 30-89 days past due to total loans | 0.27 | % | 0.29 | % |
At or For The Three Months Ended June 30, | At or For The Six Months Ended June 30, | At or For The Year Ended December 31, 2018 | ||||||||||||||||||
(Dollars in thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||
ALL at the beginning of the period | $ | 25,201 | $ | 22,990 | $ | 24,712 | $ | 24,171 | $ | 24,171 | ||||||||||
Provision for loan losses | 1,175 | 990 | 1,925 | 490 | 845 | |||||||||||||||
Charge-offs: | ||||||||||||||||||||
Residential real estate | 14 | 85 | 25 | 116 | 173 | |||||||||||||||
Commercial real estate | — | 86 | 65 | 512 | 512 | |||||||||||||||
Commercial | 217 | 127 | 453 | 298 | 736 | |||||||||||||||
Consumer and home equity | 40 | 91 | 64 | 266 | 572 | |||||||||||||||
HPFC | — | — | — | — | 255 | |||||||||||||||
Total charge-offs | 271 | 389 | 607 | 1,192 | 2,248 | |||||||||||||||
Recoveries: | ||||||||||||||||||||
Residential real estate | 2 | 15 | 4 | 15 | 90 | |||||||||||||||
Commercial real estate | 3 | 2 | 7 | 15 | 28 | |||||||||||||||
Commercial | 49 | 58 | 111 | 120 | 1,770 | |||||||||||||||
Consumer and home equity | 4 | 2 | 11 | 49 | 55 | |||||||||||||||
HPFC | — | — | — | — | 1 | |||||||||||||||
Total recoveries | 58 | 77 | 133 | 199 | 1,944 | |||||||||||||||
Net charge-offs | 213 | 312 | 474 | 993 | 304 | |||||||||||||||
ALL at the end of the period | $ | 26,163 | $ | 23,668 | $ | 26,163 | $ | 23,668 | $ | 24,712 | ||||||||||
Components of allowance for credit losses: | ||||||||||||||||||||
Allowance for loan losses | $ | 26,163 | $ | 23,668 | $ | 26,163 | $ | 23,668 | $ | 24,712 | ||||||||||
Liability for unfunded credit commitments | 14 | 16 | 14 | 16 | 22 | |||||||||||||||
Balance of allowance for credit losses at end of the period | $ | 26,177 | $ | 23,684 | $ | 26,177 | $ | 23,684 | $ | 24,734 | ||||||||||
Net charge-offs (annualized) to average loans | 0.03 | % | 0.04 | % | 0.03 | % | 0.07 | % | 0.01 | % | ||||||||||
Provision for loan losses (annualized) to average loans | 0.15 | % | 0.14 | % | 0.13 | % | 0.04 | % | 0.03 | % | ||||||||||
ALL to total loans | 0.84 | % | 0.83 | % | 0.84 | % | 0.83 | % | 0.82 | % | ||||||||||
ALL to non-performing loans | 174.77 | % | 119.48 | % | 174.77 | % | 119.48 | % | 171.17 | % |
• | In the first half of 2019, core deposits grew 1% and CDs grew 23%. In the second quarter of 2019, one large depositor shifted $70.0 million of funding from interest checking to CDs. Adjusted for this shift of funding between deposit accounts, core deposits grew 4% and CDs grew 8% over the first half of 2019. |
At or For The Six Months Ended June 30, | At or For The Year Ended December 31, 2018 | |||||||||||
2019 | 2018 | |||||||||||
Financial Ratios | ||||||||||||
Average equity to average assets | 10.29 | % | 9.89 | % | 9.93 | % | ||||||
Common equity ratio | 10.52 | % | 9.75 | % | 10.14 | % | ||||||
Tangible common equity ratio (non-GAAP) | 8.49 | % | 7.56 | % | 8.02 | % | ||||||
Dividend payout ratio | 34.09 | % | 34.29 | % | 33.85 | % | ||||||
Per Share Data | ||||||||||||
Book value per share | $ | 30.26 | $ | 26.25 | $ | 27.95 | ||||||
Tangible book value per share (non-GAAP) | 23.88 | 19.87 | 21.61 | |||||||||
Dividends declared per share | 0.60 | 0.55 | 1.15 |
(In thousands) | Total Amount | Commitment Expires in: | ||||||||||||||||||
Off-Balance Sheet Financial Instruments | Committed | <1 Year | 1 – 3 Years | 3 – 5 Years | >5 Years | |||||||||||||||
Commitments to extend credit | $ | 737,371 | $ | 311,117 | $ | 76,400 | $ | 12,789 | $ | 337,065 | ||||||||||
Standby letters of credit | 5,887 | 4,156 | 458 | — | 1,273 | |||||||||||||||
Customer loan swaps - notional value | 818,514 | — | 15,177 | 78,446 | 724,891 | |||||||||||||||
Interest rate swap on loans - notional value | 100,000 | — | — | 100,000 | — | |||||||||||||||
Junior subordinated debt interest rate swaps - notional value | 43,000 | — | 10,000 | — | 33,000 | |||||||||||||||
Fixed-rate mortgage interest rate lock commitments - notional value | 34,814 | 34,814 | — | — | — | |||||||||||||||
Forward delivery commitments - notional value | 13,088 | 13,088 | — | — | — | |||||||||||||||
Total | $ | 1,752,674 | $ | 363,175 | $ | 102,035 | $ | 191,235 | $ | 1,096,229 |
(In thousands) | Total Amount | Payments Due per Period | ||||||||||||||||||
Contractual obligations and commitments | Committed | <1 Year | 1 – 3 Years | 3 – 5 Years | >5 Years | |||||||||||||||
Operating leases | $ | 17,256 | $ | 1,414 | $ | 2,565 | $ | 2,445 | $ | 10,832 | ||||||||||
Finance leases | 2,879 | 174 | 348 | 348 | 2,009 | |||||||||||||||
FHLBB advances - other | 10,000 | 10,000 | — | — | — | |||||||||||||||
Retail repurchase agreements | 241,647 | 241,647 | — | — | — | |||||||||||||||
Junior subordinated debentures | 44,331 | — | — | — | 44,331 | |||||||||||||||
Subordinated debentures | 14,660 | — | — | — | 14,660 | |||||||||||||||
Other contractual obligations | 1,576 | 1,576 | — | — | — | |||||||||||||||
Total | $ | 332,349 | $ | 254,811 | $ | 2,913 | $ | 2,793 | $ | 71,832 |
Estimated Changes In Net Interest Income | ||||||
Rate Change from Year 1 — Base | June 30, 2019 | June 30, 2018 | ||||
Year 1 | ||||||
+200 basis points | (0.49 | )% | 0.03 | % | ||
-100 basis points | (0.47 | )% | (0.65 | )% | ||
-200 basis points(1) | (1.07 | )% | Not measured | |||
Year 2 | ||||||
+200 basis points | 5.10 | % | 8.69 | % | ||
-100 basis points | (2.81 | )% | (2.21 | )% | ||
-200 basis points(1) | (8.40 | )% | Not measured |
(1) | The down 200 basis point scenario was not performed as part of the Company's June 30, 2018 net interest income sensitivity analysis given market interest rates at that time. |
Exhibit No. | Definition | |
31.1* | ||
31.2* | ||
32.1** | ||
32.2** | ||
101* | XBRL (Extensible Business Reporting Language). The following materials from Camden National Corporation’s Quarterly Report on Form 10-Q for the period ended June 30, 2019, formatted in XBRL: (i) Consolidated Statements of Condition - June 30, 2019 and December 31, 2018; (ii) Consolidated Statements of Income - Three and Six Months Ended June 30, 2019 and 2018; (iii) Consolidated Statements of Comprehensive Income - Three and Six Months Ended June 30, 2019 and 2018; (iv) Consolidated Statements of Changes in Shareholders’ Equity - Three and Six Months Ended June 30, 2019 and 2018; (v) Consolidated Statements of Cash Flows - Six Months Ended June 30, 2019 and 2018; and (vi) Notes to the Unaudited Consolidated Financial Statements. | |
* | Filed herewith. | |
** | Furnished herewith. |
CAMDEN NATIONAL CORPORATION | |||
(Registrant) | |||
/s/ Gregory A. Dufour | August 8, 2019 | ||
Gregory A. Dufour | Date | ||
President and Chief Executive Officer (Principal Executive Officer) | |||
/s/ Deborah A. Jordan | August 8, 2019 | ||
Deborah A. Jordan | Date | ||
Chief Operating Officer, Chief Financial Officer and Principal Financial & Accounting Officer | |||
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 (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
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. |
/s/ Gregory A. Dufour | |
Gregory A. Dufour | |
President and Chief Executive Officer |
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 (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
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. |
/s/ Deborah A. Jordan | |
Deborah A. Jordan | |
Chief Operating Officer, Chief Financial Officer and | |
Principal Financial & Accounting Officer |
/s/ Gregory A. Dufour | August 8, 2019 | |
Gregory A. Dufour | Date | |
President and Chief Executive Officer |
/s/ Deborah A. Jordan | August 8, 2019 | |
Deborah A. Jordan | Date | |
Chief Operating Officer, Chief Financial Officer and | ||
Principal Financial & Accounting Officer |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Jul. 31, 2019 |
|
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | CAMDEN NATIONAL CORP | |
Entity Central Index Key | 0000750686 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 15,409,281 |
CONSOLIDATED STATEMENTS OF CONDITION (CURRENT PERIOD UNAUDITED) (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Available-for-sale Securities, Noncurrent | $ 915,099 | $ 933,399 |
Debt Securities, Held-to-maturity, Fair Value | 1,335 | 1,291 |
Loans held for sale | $ 13,088 | $ 4,314 |
Common stock, no par value (dollars per share) | $ 0 | $ 0 |
Common stock, authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, issued (in shares) | 15,457,480 | 15,591,914 |
Common stock, outstanding (in shares) | 15,457,480 | 15,591,914 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net change in unrealized gains (losses) on available-for-sale securities, net of tax of ($2,975), $847, ($5,960) and $3,971, respectively | $ (2,975) | $ 847 | $ (5,960) | $ 3,971 |
Net reclassification adjustment for net gains included in net income, net of tax of $6, $7, $6 and $7, respectively(1) | 6 | 7 | 6 | 7 |
Net change in unrealized losses on cash flow hedging derivatives, net of tax of $330, ($123), $583 and ($430), respectively | 330 | (123) | 583 | (430) |
Net reclassification adjustment for effective portion of cash flow hedges, net of tax of ($44), ($44), ($69) and ($105), respectively(2) | (44) | (44) | (69) | (105) |
Reclassification of amortization of net unrecognized actuarial loss and prior service cost, net of tax of ($13), ($32), ($26) and ($63), respectively(3) | $ (13) | $ (32) | $ (26) | $ (63) |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands |
Total |
Common Stock |
Retained Earnings |
Accumulated Other Comprehensive Loss |
|||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Beginning Balance (in shares) at Dec. 31, 2017 | 15,524,704 | ||||||||||
Beginning Balance at Dec. 31, 2017 | $ 403,413 | $ 156,904 | $ 266,723 | $ (20,214) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net Income | 25,037 | 25,037 | |||||||||
Other comprehensive income, net of tax | [1] | (12,300) | (12,300) | ||||||||
Stock-based compensation expense | 1,011 | $ 1,011 | |||||||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit (shares) | 51,545 | ||||||||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings | (421) | $ (421) | |||||||||
Cash dividends declared | (8,586) | (8,586) | |||||||||
Ending Balance (in shares) at Jun. 30, 2018 | 15,576,249 | ||||||||||
Ending Balance at Jun. 30, 2018 | 408,819 | $ 157,494 | 283,372 | (32,047) | |||||||
Beginning Balance (in shares) at Mar. 31, 2018 | 15,565,868 | ||||||||||
Beginning Balance at Mar. 31, 2018 | 403,047 | $ 156,860 | 275,841 | (29,654) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net Income | 12,217 | 12,217 | |||||||||
Other comprehensive income, net of tax | (2,393) | (2,393) | |||||||||
Stock-based compensation expense | 580 | $ 580 | |||||||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit (shares) | 10,381 | ||||||||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings | 54 | $ 54 | |||||||||
Cash dividends declared | (4,686) | (4,686) | |||||||||
Ending Balance (in shares) at Jun. 30, 2018 | 15,576,249 | ||||||||||
Ending Balance at Jun. 30, 2018 | 408,819 | $ 157,494 | 283,372 | (32,047) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Cumulative-effect adjustment | ASU 2016-01 | [1] | 198 | (198) | ||||||||
Cumulative-effect adjustment | ASU 2017-12 | [2] | 665 | 665 | ||||||||
Beginning Balance (in shares) at Dec. 31, 2018 | 15,591,914 | ||||||||||
Beginning Balance at Dec. 31, 2018 | 435,825 | $ 158,215 | 302,030 | (24,420) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net Income | 27,477 | 27,477 | |||||||||
Other comprehensive income, net of tax | 19,957 | 19,957 | |||||||||
Stock-based compensation expense | 935 | $ 935 | |||||||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit (shares) | 32,344 | ||||||||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings | (241) | $ (241) | |||||||||
Cash dividends declared | (9,340) | (9,340) | |||||||||
Stock Repurchased During Period, Value | (7,108) | $ 7,108 | |||||||||
Stock Repurchased During Period, Shares | (166,778) | ||||||||||
Ending Balance (in shares) at Jun. 30, 2019 | 15,457,480.00 | ||||||||||
Ending Balance at Jun. 30, 2019 | 467,759 | $ 151,801 | 320,421 | (4,463) | |||||||
Beginning Balance (in shares) at Mar. 31, 2019 | 15,560,565 | ||||||||||
Beginning Balance at Mar. 31, 2019 | 453,718 | $ 156,152 | 311,870 | (14,304) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net Income | 13,204 | 13,204 | |||||||||
Other comprehensive income, net of tax | 9,841 | 9,841 | |||||||||
Stock-based compensation expense | 477 | $ 477 | |||||||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit (shares) | 8,136 | ||||||||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings | (26) | $ (26) | |||||||||
Cash dividends declared | (4,653) | (4,653) | |||||||||
Stock Repurchased During Period, Value | (4,802) | $ 4,802 | |||||||||
Stock Repurchased During Period, Shares | (111,221) | ||||||||||
Ending Balance (in shares) at Jun. 30, 2019 | 15,457,480.00 | ||||||||||
Ending Balance at Jun. 30, 2019 | 467,759 | $ 151,801 | 320,421 | $ (4,463) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Cumulative-effect adjustment | ASU 2016-02 | [3] | $ 254 | $ 254 | ||||||||
|
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared, per share | $ 0.30 | $ 0.30 | $ 0.60 | $ 0.55 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Operating Activities | ||
Net Income | $ 27,477,000 | $ 25,037,000 |
Adjustments to reconcile net income to net cash (used by) provided by operating activities: | ||
Originations of mortgage loans held for sale | (86,351,000) | (101,749,000) |
Proceeds from the sale of mortgage loans | 79,575,000 | 99,778,000 |
Gain on sale of mortgage loans, net of origination costs | (1,998,000) | (2,550,000) |
Provision for credit losses | 1,917,000 | 486,000 |
Depreciation and amortization expense | 1,901,000 | 1,907,000 |
Investment securities amortization and accretion, net | 1,371,000 | 1,559,000 |
Stock-based compensation expense | 935,000 | 1,011,000 |
Amortization of intangible assets | 352,000 | 362,000 |
Purchase accounting accretion, net | (817,000) | (1,031,000) |
Increase in other assets | (24,895,000) | (3,699,000) |
(Decrease) increase in other liabilities | (5,774,000) | 10,065,000 |
Net cash (used by) provided by operating activities | (6,307,000) | 31,176,000 |
Investing Activities | ||
Proceeds from sales and maturities of available-for-sale securities | 115,715,000 | 73,264,000 |
Purchase of available-for-sale securities | (98,755,000) | (100,615,000) |
Proceeds from maturities of held-to-maturity securities | 0 | 750,000 |
Net increase in loans | (74,556,000) | (85,274,000) |
Purchase of Federal Home Loan Bank stock | (3,656,000) | (8,450,000) |
Proceeds from sale of Federal Home Loan Bank stock | 6,706,000 | 6,550,000 |
Purchase of premises and equipment | 1,896,000 | 1,695,000 |
Proceeds from the sale of premises and equipment | 0 | 749,000 |
Proceeds from other investments | 0 | 205,000 |
Recoveries of previously charged-off loans | 133,000 | 199,000 |
Proceeds from the sale of other real estate owned | 554,000 | 0 |
Net cash used by investing activities | (55,755,000) | (114,317,000) |
Financing Activities | ||
Net increase in deposits | 127,169,000 | 55,703,000 |
Net (repayments of) proceeds from borrowings less than 90 days | (29,221,000) | 49,830,000 |
Common stock repurchase | (6,997,000) | 0 |
Exercise of stock options and issuance of restricted stock, net of repurchase for tax withholdings | (241,000) | (421,000) |
Cash dividends paid on common stock | 9,358,000 | 7,796,000 |
Finance lease payments | (53,000) | 0 |
Net cash provided by financing activities | 81,299,000 | 97,316,000 |
Net increase in cash, cash equivalents and restricted cash | 19,237,000 | 14,175,000 |
Cash, cash equivalents, and restricted cash at beginning of period | 66,999,000 | 102,971,000 |
Cash, cash equivalents and restricted cash at end of period | 86,236,000 | 117,146,000 |
Supplemental information | ||
Interest paid | 20,214,000 | 13,707,000 |
Income taxes paid | 5,351,000 | 5,176,000 |
Payments for Repurchase of Common Stock, Unsettled | $ 111,000 | $ 0 |
BASIS OF PRESENTATION |
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited consolidated interim financial statements were prepared in accordance with instructions for Form 10-Q and, therefore, do not include all disclosures required by accounting principles generally accepted in the United States of America for complete presentation of financial statements. In the opinion of management, the consolidated financial statements contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the consolidated statements of condition of Camden National Corporation (the "Company") as of June 30, 2019 and December 31, 2018, the consolidated statements of income for the three and six months ended June 30, 2019 and 2018, the consolidated statements of comprehensive income for the three and six months ended June 30, 2019 and 2018, the consolidated statements of changes in shareholders' equity for the three and six months ended June 30, 2019 and 2018, and the consolidated statements of cash flows for the six months ended June 30, 2019 and 2018. The consolidated financial statements include the accounts of the Company and Camden National Bank (the "Bank"), a wholly-owned subsidiary of the Company (which includes the consolidated accounts of Healthcare Professional Funding Corporation ("HPFC"), Property A, Inc. and Property P, Inc.). All intercompany accounts and transactions have been eliminated in consolidation. Assets held by the Bank in a fiduciary capacity, through Camden National Wealth Management, a division of the Bank, are not assets of the Company and, therefore, are not included in the consolidated statements of condition. The Company also owns 100% of the common stock of Camden Capital Trust A and Union Bankshares Capital Trust I; these entities are unconsolidated subsidiaries of the Company. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. Such reclassifications did not impact net income or shareholders' equity as previously reported. Net income reported for the three and six months ended June 30, 2019, is not necessarily indicative of the results that may be expected for the full year. The information in this report should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018. The acronyms, abbreviations and definitions identified below are used throughout this Form 10-Q, including Part I. "Financial Information" and Part II. "Management's Discussion and Analysis of Financial Condition and Results of Operations." The following is provided to aid the reader and provide a reference page when reviewing these sections of the Form 10-Q.
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RECENT ACCOUNTING PRONOUNCEMENTS |
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Accounting Standards Adopted The Company adopted the following accounting standards in 2019, and such standards have been accounted for and presented within the accompanying consolidated financial statements for the three and six months ended June 30, 2019 as follows: ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"): In February 2016, the FASB issued ASU 2016-02 to increase transparency and comparability among organizations by recognizing lease assets and liabilities (including operating leases) on the balance sheet and disclosing key information about leasing arrangements. Prior lease accounting did not require the inclusion of operating leases in the balance sheet. Effective January 1, 2019, the Company adopted ASU 2016-02, using the following practical expedients for transitional relief provided for within the subsequent issuance of ASU No. 2018-11, Leases (Topic 842): Targeted Improvements ("ASU 2018-11"):
The Company has completed its assessment and implementation process for ASU 2016-02 and recorded operating and finance lease right-of-use assets of $12.1 million and lease liabilities of $12.3 million on the consolidated statements of condition within other assets and other liabilities, respectively, on January 1, 2019. Because the modified-retrospective transition method was used, the Company did not revise prior period presentation on its consolidated statements of income. The adoption of the ASU did not have a material effect on the consolidated financial statements, which included a cumulative-effect adjustment of $254,000 to retained earnings on January 1, 2019. Refer to Note 5 for further details. Accounting Standards Issued The following are recently issued accounting pronouncements that have yet to be adopted by the Company: ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), updated by ASU No. 2018-19, Financial Instruments - Credit Losses (Topic 326): Codification Improvements to Topic 326 ("ASU 2018-19"), and ASU No. 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief ("ASU 2019-05"). In June 2016, the FASB issued ASU 2016-13 to require timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years, for public companies. Early adoption is permitted for annual periods beginning after December 15, 2018, including interim periods within that fiscal year. The Company will adopt the guidance under a modified-retrospective approach, whereby a cumulative-effect adjustment will be made to retained earnings upon adoption. The Company will use a prospective transition approach for debt securities for which an OTTI had been recognized before the effective date, as applicable. In May 2019, the FASB issued ASU 2019-05 to provide entities impacted by ASU 2016-13 with targeted transition relief upon adoption. ASU 2019-05 provided that for certain instruments within the scope of ASU 2016-13 the option to irrevocably elect the fair value option in accordance with Subtopic 825-10, Financial Instruments - Overall ("ASC 825"), applied on an instrument-by-instrument basis. The fair value option election does not apply to HTM debt securities. An entity that elects the fair value option is to apply the guidance in Subtopics 820-10, Fair Value Measurement - Overall, and ASC 825-10. The Company will not elect the fair value option upon adoption of ASU 2016-13. While the Company continues to prepare for the adoption of ASU 2016-13 on January 1, 2020, it recognizes that changes to the consolidated financial statements upon adoption are imminent as the ASU requires:
In 2015, the Company began its preparation for ASU 2016-13, understanding the significance of the standard and its potential impact to its consolidated financial statements and the financial industry. While the Company continues to review, validate and refine its loss methodologies in accordance with ASU 2016-13, it has completed certain critical tasks and components as it prepares for adoption on January 1, 2020, such as the assessment and validation of critical data points. At this time, the Company does not have an estimated financial impact of adoption to its consolidated financial statements, but anticipates it will have an estimate of the financial impact in the fourth quarter of 2019. Any disclosure of an estimated financial impact made by the Company will be subject to various factors that may cause actual results to differ materially from the Company's estimates. These factors include, but are not limited to, (i) the economic outlook over the reasonable and supportable forecast period; (ii) changes in the make-up of the Company’s loan portfolio; and/or (iii) changes in the credit quality of individual loans or pools of loans within its portfolio upon adoption. The Company continues to monitor and assess exposure drafts produced by the FASB pertaining to ASU 2016-13. ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"): In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"). ASU 2017-04 was issued to reduce the cost and complexity of the goodwill impairment test. To simplify the subsequent measurement of goodwill, step two of the goodwill impairment test was eliminated. Instead, in accordance with ASU 2017-04, a Company will recognize an impairment of goodwill should the carrying value of a reporting unit exceed its fair value (i.e. step one). ASU 2017-04 will be effective for the Company on January 1, 2020 and will be applied prospectively. The Company does not expect the ASU to have a material impact on the consolidated financial statements upon adoption. The Company continues to monitor and assess exposure drafts produced by the FASB pertaining to this topic. |
INVESTMENTS |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS | INVESTMENTS AFS and HTM Investments The following table summarizes the amortized cost and estimated fair values of AFS and HTM investments, as of the dates indicated:
Net unrealized gains on AFS investments reported within AOCI at June 30, 2019, were $3.9 million, net of a deferred tax liability of $1.1 million. Net unrealized losses on AFS investments reported within AOCI at December 31, 2018, were $17.8 million, net of a deferred tax benefit of $4.9 million. For the six months ended June 30, 2019 and 2018, the Company purchased debt investments of $98.8 million and $100.6 million, respectively, all of which were designated as AFS investments. Impaired AFS and HTM Investments: Management periodically reviews the Company’s AFS and HTM investments to determine the cause, magnitude and duration of declines in the fair value of each security. Thorough evaluations of the causes of the unrealized losses are performed to determine whether the impairment is temporary or other-than-temporary in nature. Considerations such as the ability of the securities to meet cash flow requirements, levels of credit enhancements, risk of curtailment, and recoverability of invested amount over a reasonable period of time, and the length of time the security is in a loss position, for example, are applied in determining OTTI. Once a decline in value is determined to be other-than-temporary, the cost basis of the security is permanently reduced and a corresponding charge to earnings is recognized. The following table presents the estimated fair values and gross unrealized losses on AFS and HTM investments that were in a continuous loss position at June 30, 2019 and December 31, 2018, by length of time that an individual security in each category has been in a continuous loss position:
At June 30, 2019 and December 31, 2018, the Company held 125 and 302 total debt investments with a fair value of $387.4 million and $722.2 million that were in an unrealized loss position totaling $5.2 million and $24.6 million, respectively, that were considered temporary. Of these, MBS and CMOs with a fair value of $383.3 million and $591.9 million were in an unrealized loss position, and have been in an unrealized loss position for 12 months or more, totaling $5.2 million and $23.3 million at June 30, 2019 and December 31, 2018, respectively. The unrealized loss was reflective of current interest rates in excess of the yield received on debt investments and is not indicative of an overall change in credit quality or other factors. At June 30, 2019 and December 31, 2018, gross unrealized losses on the Company's AFS and HTM investments were 1% and 3%, respectively, of their respective fair values. At June 30, 2019, the Company had the intent and ability to retain its debt investments in an unrealized loss position until the decline in value has recovered. Sale of AFS Investments: The following table details the Company's sales of AFS investments for the period indicated below:
For the three and six months ended June 30, 2019, the Company sold certain AFS investments with a total carrying value of $45.8 million and recorded a net gain of $27,000 within non-interest income in the consolidated statements of income. The Company had not previously recorded any OTTI on these securities sold. For the three and six months ended June 30, 2018, the Company sold certain AFS investments with a total carrying value of $9.9 million and recorded a gain of $31,000 within non-interest income in the consolidated statements of income. The Company had not previously recorded any OTTI on these securities sold. AFS and HTM Investments Pledged: At June 30, 2019 and December 31, 2018, AFS and HTM investments with an amortized cost of $667.3 million and $734.1 million and estimated fair values of $670.5 million and $714.4 million, respectively, were pledged to secure FHLBB advances, public deposits, and securities sold under agreements to repurchase and for other purposes required or permitted by law. Contractual Maturities: The amortized cost and estimated fair values of the Company's AFS and HTM investments by contractual maturity at June 30, 2019, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Other Investments The following table summarizes the cost and estimated fair values of the Company's investment in equity securities, FHLBB stock and FRBB stock as presented within other investments on the consolidated statements of condition, as of the dates indicated:
For the three months ended June 30, 2019 and 2018, the Company recognized an unrealized (loss) gain of ($159,000) and $11,000, respectively, due to the change in fair value of its bank stock equity securities, which was presented within other income on the consolidated statements of income. For the six months ended June 30, 2019 and 2018, the Company recognized an unrealized gain (loss) of $84,000 and ($24,000), respectively, due to the change in fair value of its bank stock equity securities, which was presented within other income on the consolidated statements of income. For the six months ended June 30, 2018, a gain of $195,000 was recognized within other income on the consolidated statements of income upon sale of an investment. The Company did not record any OTTI on its FHLBB and FRB stock for the three or six months ended June 30, 2019 and 2018. |
LOANS AND ALLOWANCE FOR LOAN LOSSES |
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Loans and Leases Receivable Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOANS AND ALLOWANCE FOR LOAN LOSSES | LOANS AND ALLOWANCE FOR LOAN LOSSES The composition of the Company’s loan portfolio, excluding residential loans held for sale, was as follows for the dates indicated:
The loan balances for each portfolio segment presented above are net of their respective unamortized fair value mark discount on acquired loans and net of unamortized loan origination costs for the dates indicated:
The Bank’s lending activities are primarily conducted in Maine, but also include loan production offices in Massachusetts and New Hampshire. The Company originates single- and multi-family residential loans, commercial real estate loans, business loans, municipal loans and a variety of consumer loans. In addition, the Company makes loans for the construction of residential homes, multi-family properties and commercial real estate properties. The ability and willingness of borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity within the geographic area and the general economy. In the normal course of business, the Bank makes loans to certain officers, directors and their associated companies, under terms that are consistent with the Company's lending policies and regulatory requirements and that do not involve more than the normal risk of collectability or present other unfavorable features At June 30, 2019 and December 31, 2018, outstanding loans to certain officers, directors and their associated companies was less than 5% of the Company's shareholders' equity. The HPFC loan portfolio consists of niche commercial lending to the small business medical field, including dentists, optometrists and veterinarians across the U.S. The ability and willingness of borrowers to honor their repayment commitments is generally dependent on the success of the borrower's business. In 2016, the Company closed HPFC's operations and is no longer originating HPFC loans. The ALL is management’s best estimate of the inherent risk of loss in the Company’s loan portfolio as of the consolidated statement of condition date. Management makes various assumptions and judgments about the collectability of the loan portfolio and provides an allowance for potential losses based on a number of factors including historical losses. If those assumptions are incorrect, the ALL may not be sufficient to cover losses and may cause an increase in the allowance in the future. Among the factors that could affect the Company’s ability to collect loans and require an increase to the allowance in the future are: (i) financial condition of borrowers; (ii) real estate market changes; (iii) state, regional, and national economic conditions; and (iv) a requirement by federal and state regulators to increase the provision for loan losses or recognize additional charge-offs. There were no significant changes in the Company's ALL methodology during the six months ended June 30, 2019. The Board of Directors monitors credit risk through the Directors' Loan Review Committee, which reviews large credit exposures, monitors the external loan review reports, reviews the lending authority for individual loan officers when required, and has approval authority and responsibility for all matters regarding the loan policy and other credit-related policies, including reviewing and monitoring asset quality trends, concentration levels, and the ALL methodology. Credit Risk Administration and the Credit Risk Policy Committee oversee the Company's systems and procedures to monitor the credit quality of its loan portfolio, conduct a loan review program, maintain the integrity of the loan rating system, determine the adequacy of the ALL and support the oversight efforts of the Directors' Loan Review Committee and the Board of Directors. The Company's practice is to manage the portfolio proactively such that management can identify problem credits early, assess and implement effective work-out strategies, and take charge-offs as promptly as practical. In addition, the Company continuously reassesses its underwriting standards in response to credit risk posed by changes in economic conditions. For purposes of determining the ALL, the Company disaggregates its loans into portfolio segments, which include residential real estate, commercial real estate, commercial, home equity, consumer and HPFC. Each portfolio segment possesses unique risk characteristics that are considered when determining the appropriate level of allowance. These risk characteristics unique to each portfolio segment include the following: Residential Real Estate. Residential real estate loans held in the Company's loan portfolio are made to borrowers who demonstrate the ability to make scheduled payments with full consideration to underwriting factors. Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan-to-value ratios within established policy guidelines. Collateral consists of mortgage liens on one- to four-family residential properties, including for investment purposes. Commercial Real Estate. Commercial real estate loans consist of mortgage loans to finance investments in real property such as multi-family residential, commercial/retail, office, industrial, hotels, educational, health care facilities and other specific use properties. Commercial real estate loans are typically written with amortizing payment structures. Collateral values are determined based upon appraisals and evaluations in accordance with established policy guidelines. Loan-to-value ratios at origination are governed by established policy and regulatory guidelines. Commercial real estate loans are primarily paid by the cash flow generated from the real property, such as operating leases, rents, or other operating cash flows from the borrower. Commercial. Commercial loans consist of revolving and term loan obligations extended to business and corporate enterprises for the purpose of financing working capital and/or capital investment. Collateral generally consists of pledges of business assets including, but not limited to, accounts receivable, inventory, plant and equipment, and/or real estate, if applicable. Commercial loans are primarily paid by the operating cash flow of the borrower. Commercial loans may be secured or unsecured. Home Equity. Home equity loans and lines are made to qualified individuals for legitimate purposes secured by senior or junior mortgage liens on owner-occupied one- to four-family homes, condominiums, or vacation homes. The home equity loan has a fixed rate and is billed as equal payments comprised of principal and interest. The home equity line of credit has a variable rate and is billed as interest-only payments during the draw period. At the end of the draw period, the home equity line of credit is billed as a percentage of the principal balance plus all accrued interest. Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan-to-value ratios within established policy guidelines. Consumer. Consumer loan products include personal lines of credit and amortizing loans made to qualified individuals for various purposes such as education, auto loans, debt consolidation, personal expenses or overdraft protection. Borrower qualifications include favorable credit history combined with supportive income and collateral requirements within established policy guidelines. Consumer loans may be secured or unsecured. HPFC. Prior to the Company's closing of HPFC's operations in 2016, it provided commercial lending to dentists, optometrists and veterinarians, many of which were start-up companies. HPFC's loan portfolio consists of term loan obligations extended for the purpose of financing working capital and/or purchase of equipment. Collateral consists of pledges of business assets including, but not limited to, accounts receivable, inventory, and/or equipment. These loans are primarily paid by the operating cash flow of the borrower and the original terms range from seven to ten years. The following presents the activity in the ALL and select loan information by portfolio segment for the periods indicated:
The following reconciles the provision for loan losses to the provision for credit losses as presented on the consolidated statements of income for the periods indicated:
The Company focuses on maintaining a well-balanced and diversified loan portfolio. Despite such efforts, it is recognized that credit concentrations may occasionally emerge as a result of economic conditions, changes in local demand, natural loan growth and runoff. To ensure that credit concentrations can be effectively identified, all commercial and commercial real estate loans are assigned Standard Industrial Classification codes, North American Industry Classification System codes, and state and county codes. Shifts in portfolio concentrations are monitored by the Company's Credit Risk Administration. As of June 30, 2019, the Company's total exposure to the lessors of nonresidential buildings' industry was 12% of total loans and 31% of total commercial real estate loans. There were no other industry exposures exceeding 10% of the Company's total loan portfolio as of June 30, 2019. To further identify loans with similar risk profiles, the Company categorizes each portfolio segment into classes by credit risk characteristic and applies a credit quality indicator to each portfolio segment. The indicators for commercial, commercial real estate, residential real estate, and HPFC loans are represented by Grades 1 through 10 as outlined below. In general, risk ratings are adjusted periodically throughout the year as updated analysis and review warrants. This process may include, but is not limited to, annual credit and loan reviews, periodic reviews of loan performance metrics, such as delinquency rates, and quarterly reviews of adversely risk rated loans. The Company uses the following definitions when assessing grades for the purpose of evaluating the risk and adequacy of the ALL:
Asset quality indicators are periodically reassessed to appropriately reflect the risk composition of the Company’s loan portfolio. Home equity and consumer loans are not individually risk rated, but rather analyzed as groups taking into account delinquency rates and other economic conditions which may affect the ability of borrowers to meet debt service requirements, including interest rates and energy costs. Performing loans include loans that are current and loans that are past due less than 90 days. Loans that are past due over 90 days and non-accrual loans, including TDRs, are considered non-performing. The following summarizes credit risk exposure indicators by portfolio segment as of the following dates:
The Company closely monitors the performance of its loan portfolio. A loan is placed on non-accrual status when the financial condition of the borrower is deteriorating, payment in full of both principal and interest is not expected as scheduled or principal or interest has been in default for 90 days or more. Exceptions may be made if the asset is secured by collateral sufficient to satisfy both the principal and accrued interest in full and collection is reasonably assured. When one loan to a borrower is placed on non-accrual status, all other loans to the borrower are re-evaluated to determine if they should also be placed on non-accrual status. All previously accrued and unpaid interest is reversed at this time. A loan may return to accrual status when collection of principal and interest is assured and the borrower has demonstrated timely payments of principal and interest for a reasonable period. Unsecured loans, however, are not normally placed on non-accrual status because they are charged-off once their collectability is in doubt. The following is a loan aging analysis by portfolio segment (including loans past due over 90 days and non-accrual loans) and a summary of non-accrual loans, which include TDRs, and loans past due over 90 days and accruing as of the following dates:
Interest income that would have been recognized if loans on non-accrual status had been current in accordance with their original terms was $115,000 and $174,000 for the three months ended June 30, 2019 and 2018, respectively. For the six months ended June 30, 2019 and 2018, the interest income that would have been recognized if loans on non-accrual status had been current in accordance with their original terms was $224,000 and $336,000, respectively. TDRs: The Company takes a conservative approach with credit risk management and remains focused on community lending and reinvesting. The Company works closely with borrowers experiencing credit problems to assist in loan repayment or term modifications. TDRs consist of loans where the Company, for economic or legal reasons related to the borrower’s financial difficulties, granted a concession to the borrower that it would not otherwise consider. TDRs typically involve term modifications or a reduction of either interest or principal. Once such an obligation has been restructured, it will remain a TDR until paid in full, or until the loan is again restructured at current market rates and no concessions are granted. The specific reserve allowance was determined by discounting the total expected future cash flows from the borrower at the original loan interest rate, or if the loan is currently collateral-dependent, using the net realizable value, which was obtained through independent appraisals and internal evaluations. The following is a summary of TDRs, by portfolio segment, and the associated specific reserve included within the ALL as of the periods indicated:
At June 30, 2019, the Company had performing and non-performing TDRs with a recorded investment balance of $3.5 million and $606,000, respectively. At December 31, 2018, the Company had performing and non-performing TDRs with a recorded investment balance of $3.9 million and $513,000, respectively. The following represents loan modifications that qualify as TDRs that occurred for the three and six months ended June 30, 2019 and 2018:
For the three and six months ended June 30, 2019, no loans were modified as TDRs within the previous 12 months for which the borrower subsequently defaulted. For the three and six months ended June 30, 2018, one home equity loan with a recorded investment of $299,000 was modified as a TDR within the previous 12 months for which the borrower subsequently defaulted. Impaired Loans: Impaired loans consist of non-accrual loans and TDRs that are individually evaluated for impairment in accordance with the Company's policy. The following is a summary of impaired loan balances and the associated allowance by portfolio segment as of and for the periods indicated:
Loan Sales: For the three months ended June 30, 2019 and 2018, the Company sold $49.6 million and $52.0 million, respectively, of fixed rate residential mortgage loans on the secondary market, which resulted in gains on the sale of loans (net of costs) of $1.2 million and $1.3 million, respectively. For the six months ended June 30, 2019 and 2018, the Company sold $77.6 million and $97.2 million, respectively, of fixed rate residential mortgage loans on the secondary market, which resulted in gains on the sale of loans (net of costs) of $2.0 million and $2.6 million, respectively. At June 30, 2019 and December 31, 2018, the Company had certain residential mortgage loans with a principal balance of $13.1 million and $4.3 million, respectively, designated as held for sale. The Company has elected the fair value option of accounting for its loans held for sale, and at June 30, 2019 and December 31, 2018, recorded an unrealized gain of $25,000 and $89,000, respectively. For the three months ended June 30, 2019 and 2018, the net change in unrealized gains on loans held for sale recorded within mortgage banking income, net, on its consolidated statements of income was ($60,000) and $23,000, respectively. For the six months ended June 30, 2019 and 2018, the net change in unrealized gains on loans held for sale recorded within mortgage banking income, net, on its consolidated statements of income was ($64,000) and $32,000, respectively. The Company has forward delivery commitments with a secondary market investor on each of its loans held for sale at June 30, 2019 and December 31, 2018. Refer to Note 8 for further discussion of the Company's forward delivery commitments. In-Process Foreclosure Proceedings: At June 30, 2019 and December 31, 2018, the Company had $2.5 million and $2.3 million, respectively, of consumer mortgage loans secured by residential real estate properties for which foreclosure proceedings were in process. The Company continues to be focused on working these consumer mortgage loans through the foreclosure process to resolution; however, the foreclosure process, typically, will take 18 to 24 months due to the State of Maine foreclosure laws. FHLB Advances: FHLB advances are those borrowings from the FHLBB greater than 90 days. FHLB advances are collateralized by a blanket lien on qualified collateral consisting primarily of loans with first mortgages secured by one- to four-family properties, certain commercial real estate loans, certain pledged investment securities and other qualified assets. The carrying value of residential real estate and commercial loans pledged as collateral was $1.2 billion and $1.1 billion at June 30, 2019 and December 31, 2018, respectively. Refer to Notes 3 and 7 of the consolidated financial statements for discussion of securities pledged as collateral. |
LEASES (Notes) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES Effective January 1, 2019, the Company adopted the new lease accounting standard, ASU 2016-02, using the modified- retrospective method. As such, for reporting periods beginning on or after January 1, 2019, leases are recognized, presented and disclosed in accordance with ASU 2016-02, while periods prior to the adoption date were not adjusted and are reported in accordance with ASC 840, Leases ("ASC 840"). Refer to Note 2 for further details. The Company enters into noncancellable lease arrangements primarily for its office buildings and branches. Certain lease arrangements contain clauses requiring increasing rental payments over the lease term, which may be linked to an index (commonly the Consumer Price Index) or contractually stipulated. Many of these lease arrangements provide the Company with the option to renew the lease arrangement after the initial lease term. These options are included in determining the lease term used to establish the right-of-use assets and lease liabilities, when it is reasonably certain the Company will exercise its renewal option. As most of the Company's leases do not have a readily determinable implicit rate, the incremental borrowing rate is primarily used to determine the discount rate for purposes of measuring the right-of-use assets and lease liabilities. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. In connection with an acquisition, the Company assumed a lease arrangement with two of its employees. The lease is for a period of five years with an expiration date of December 1, 2019 with two consecutive five-year extension periods available at the option of the Company. The lease arrangement contains certain termination clauses whereby the Company has the right to terminate the lease arrangement. The following right-of-use assets and lease liabilities have been reported within other assets and other liabilities on the consolidated statements of condition for the period indicated:
In accordance with ASC 842, the components of lease expense for the periods indicated were as follows:
In accordance with ASC 840, rent expense, excluding common area maintenance expense, for the three and six months ended June 30, 2018 was $328,000 and $672,000, respectively. Supplemental cash flow information and non-cash activity related to leases was as follows for the period indicated:
Supplemental balance sheet information related to leases was as follows for the period indicated:
The following summarizes the remaining scheduled future minimum lease payments for operating and finance leases as of June 30, 2019:
As of June 30, 2019, the Company does not have any additional operating or finance leases that have not yet commenced. The following summarizes expected future minimum lease payments, in accordance with ASC 840, as of December 31, 2018:
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LEASES | LEASES Effective January 1, 2019, the Company adopted the new lease accounting standard, ASU 2016-02, using the modified- retrospective method. As such, for reporting periods beginning on or after January 1, 2019, leases are recognized, presented and disclosed in accordance with ASU 2016-02, while periods prior to the adoption date were not adjusted and are reported in accordance with ASC 840, Leases ("ASC 840"). Refer to Note 2 for further details. The Company enters into noncancellable lease arrangements primarily for its office buildings and branches. Certain lease arrangements contain clauses requiring increasing rental payments over the lease term, which may be linked to an index (commonly the Consumer Price Index) or contractually stipulated. Many of these lease arrangements provide the Company with the option to renew the lease arrangement after the initial lease term. These options are included in determining the lease term used to establish the right-of-use assets and lease liabilities, when it is reasonably certain the Company will exercise its renewal option. As most of the Company's leases do not have a readily determinable implicit rate, the incremental borrowing rate is primarily used to determine the discount rate for purposes of measuring the right-of-use assets and lease liabilities. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. In connection with an acquisition, the Company assumed a lease arrangement with two of its employees. The lease is for a period of five years with an expiration date of December 1, 2019 with two consecutive five-year extension periods available at the option of the Company. The lease arrangement contains certain termination clauses whereby the Company has the right to terminate the lease arrangement. The following right-of-use assets and lease liabilities have been reported within other assets and other liabilities on the consolidated statements of condition for the period indicated:
In accordance with ASC 842, the components of lease expense for the periods indicated were as follows:
In accordance with ASC 840, rent expense, excluding common area maintenance expense, for the three and six months ended June 30, 2018 was $328,000 and $672,000, respectively. Supplemental cash flow information and non-cash activity related to leases was as follows for the period indicated:
Supplemental balance sheet information related to leases was as follows for the period indicated:
The following summarizes the remaining scheduled future minimum lease payments for operating and finance leases as of June 30, 2019:
As of June 30, 2019, the Company does not have any additional operating or finance leases that have not yet commenced. The following summarizes expected future minimum lease payments, in accordance with ASC 840, as of December 31, 2018:
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BORROWINGS |
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BORROWINGS | BORROWINGS The following summarizes the Company's short-term and long-term borrowed funds as presented on the consolidated statements of condition at:
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REPURCHASE AGREEMENTS |
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REPURCHASE AGREEMENTS | REPURCHASE AGREEMENTS The Company can raise additional liquidity by entering into repurchase agreements at its discretion. In a security repurchase agreement transaction, the Company will generally sell a security, agreeing to repurchase either the same or a substantially identical security on a specified later date, at a greater price than the original sales price. The difference between the sale price and purchase price is the cost of the proceeds, which is recorded as interest expense on the consolidated statement of income. The securities underlying the agreements are delivered to counterparties as security for the repurchase obligations. Because the securities are treated as collateral and the agreement does not qualify for a full transfer of effective control, the transaction does not meet the criteria to be classified as a sale, and is therefore considered a secured borrowing transaction for accounting purposes. Payments on such borrowings are interest only until the scheduled repurchase date. In a repurchase agreement, the Company is subject to the risk that the purchaser may default at maturity and not return the securities underlying the agreements. In order to minimize this potential risk, the Company either deals with established firms when entering into these transactions or with customers whose agreements stipulate that the securities underlying the agreement are not delivered to the customer and instead are held in segregated safekeeping accounts by the Company's safekeeping agents. The table below sets forth information regarding the Company’s repurchase agreements accounted for as secured borrowings and types of collateral for the periods indicated:
Certain customers held CDs totaling $1.0 million and $923,000 at June 30, 2019 and December 31, 2018, respectively, that were collateralized by CMO and MBS securities that were overnight repurchase agreements. Certain counterparties monitor collateral, and may request additional collateral to be posted from time to time. |
COMMITMENTS, CONTINGENCIES AND DERIVATIVES |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS, CONTINGENCIES AND DERIVATIVES | COMMITMENTS, CONTINGENCIES AND DERIVATIVES Legal Contingencies In the normal course of business, the Company and its subsidiaries are subject to pending and threatened legal actions. Although the Company is not able to predict the outcome of such actions, after reviewing pending and threatened actions, and based on the information currently available, management believes that the outcome of such actions, individually or in the aggregate, will not have a material adverse effect on the Company’s consolidated financial statements. Reserves are established for legal claims only when losses associated with the claims are judged to be probable and the loss can be reasonably estimated. In many lawsuits and arbitrations, it is not possible to determine whether a liability has been incurred or to estimate the ultimate or minimum amount of that liability until the case is close to resolution, in which case a reserve will not be recognized until that time. As of June 30, 2019 and December 31, 2018, the Company did not have any material loss contingencies for which accruals were provided for and/or that were required to be disclosed. Financial Instruments In the normal course of business, the Company is a party to both on- and off-balance sheet financial instruments involving, to varying degrees, elements of credit risk and interest rate risk in addition to the amounts recognized in the consolidated statements of condition. The following is a summary of the contractual and notional amounts of the Company’s off-balance sheet financial instruments:
Lending-Related Instruments The contractual amounts of the Company’s lending-related financial instruments do not necessarily represent future cash requirements since certain of these instruments may expire without being funded and others may not be fully drawn upon. These instruments are subject to the Company’s credit approval process, including an evaluation of the customer’s creditworthiness and related collateral requirements. Commitments generally have fixed expiration dates or other termination clauses. Of the total commitments to extend credit, $285.0 million and $270.8 million were unconditionally cancellable by the Company at June 30, 2019 and December 31, 2018, respectively. Standby letters of credit are conditional commitments issued to guarantee the performance of a borrower to a third party. In the event of nonperformance by the borrower, the Company would be required to fund the commitment and would be entitled to the underlying collateral, if applicable, which generally consists of pledges of business assets including, but not limited to, accounts receivable, inventory, plant and equipment, and/or real estate. The maximum potential future payments are limited to the contractual amount of the commitment. Derivative Financial Instruments The Company uses derivative financial instruments for risk management purposes (primarily interest rate risk) and not for trading or speculative purposes. The Company controls the credit risk of these instruments through collateral, credit approvals and monitoring procedures. Additionally, as part of Company's normal mortgage origination process, it provides the borrower with the option to lock their interest rate based on current market prices. During the period from commitment date to the loan closing date, the Company is subject to the risk of interest rate change. In an effort to mitigate such risk, the Company may enter into forward delivery sales commitments, typically on a "best effort" basis, with certain approved investors. The Company accounts for its interest rate lock commitments on loans that will be held for sale as derivative instruments. Furthermore, the Company records a derivative for its "best effort" forward delivery commitments upon origination of a loan identified as held for sale. Should the Company enter into a forward delivery commitment on a mandatory delivery arrangement with an investor, it accounts for the forward delivery commitment as a derivative upon execution of the mandatory delivery contract. Derivative instruments are carried at fair value in the Company’s financial statements. The accounting for changes in the fair value of a derivative instrument is dependent upon whether or not it qualifies and has been designated as a hedge for accounting purposes, and further, by the type of hedging relationship. At June 30, 2019, the Company designated its interest rate swaps on its junior subordinated debentures and its interest rate swap on loans as cash flow hedges. The change in the fair value for cash flow hedges is accounted for within AOCI, net of tax. Quarterly, in conjunction with financial reporting, each cash flow hedge is assessed for ineffectiveness. To the extent any significant ineffectiveness is identified, this amount is recorded within the consolidated statements of income. The gain or loss on the effective portion of the cash flow hedge is reclassified from AOCI into interest within the consolidated statements of income in the period the hedged transaction affects earnings. The change in fair value of derivative instruments, not designated and qualifying as hedges, are accounted for within the consolidated statements of income. Customer Loan Swaps: The Bank will enter into interest rate swaps with its commercial customers to provide them with a means to lock into a long-term fixed rate, while the Bank simultaneously enters into an arrangement with a counterparty to swap the fixed rate to a variable rate to manage its interest rate exposure effectively. The Bank's customer loan level derivative program is not designated as a hedge for accounting purposes. As the interest rate swap agreements have substantially equivalent and offsetting terms, they do not materially change the Bank's interest rate risk or present any material exposure to the Company's consolidated statements of income. The Company records its customer loan swaps at fair value and presents them on a gross basis within other assets and accrued interest and other liabilities on the consolidated statements of condition. The following table presents the total positions, notional and fair value of the Company's customer loans swaps with its commercial customers and the corresponding interest rate swap agreements with counterparty for the dates indicated:
The Bank seeks to mitigate its customer counterparty credit risk exposure through its loan policy and underwriting process, which includes credit approval limits, monitoring procedures, and obtaining collateral, where appropriate. The Bank seeks to mitigate its institutional counterparty credit risk exposure by limiting the institutions for which it will enter into interest swap arrangements through an approved listing by the Company's Board of Directors. The Company has entered into a master netting arrangement with its counterparty and settles payments with the counterparty as necessary. The Bank's arrangement with its institutional counterparty requires it to post cash or other assets as collateral for its customer loan swap contracts in a net liability position based on their fair values and the Bank's credit rating or receive cash collateral for contracts in a net asset position as requested. At June 30, 2019, the Bank posted to the counterparty $17.8 million of cash as collateral on its customer loan swap contracts which was presented within other assets on the consolidated statements of condition. Refer to Note 9 for further discussion of master netting arrangements and presentation within the Company's consolidated financial statements. Interest Rate Swap on Loans: On June 12, 2019, the Bank entered into a $100.0 million interest rate swap contract with a counterparty to manage interest rate risk associated with its variable-rate loans. The Company has entered into a master netting arrangement with the counterparty and settles payments monthly on a net basis. The Bank's arrangement with the counterparty requires it to post collateral for its interest rate swap on loans that is in a net liability position based on its fair value. If the interest rate swap is in a net asset position based on its fair value, the counterparty will post collateral to the Bank as requested. At June 30, 2019, neither the Bank nor the counterparty had posted any collateral. Refer to Note 9 for further discussion of master netting arrangements and presentation within the Company's consolidated financial statements. The details of the interest rate swap for the date indicated was as follows:
For the three and six months ended June 30, 2019, the Company did not record any ineffectiveness within the consolidated statements of income. Net payments paid to the counterparty for the six months ended June 30, 2019 were $34,000 and were classified as cash flows from operating activities in the Company's consolidated statements of cash flows. Junior Subordinated Debt Interest Rate Swaps: The Company entered into five interest rate swap agreements with a counterparty to manage interest rate risk associated with the Company's variable rate borrowings. Each interest rate swap was designated as a cash flow hedge. The Company entered into a master netting arrangement with its counterparty and settles payments with the counterparty quarterly on a net basis. The interest rate swap arrangements contain provisions that require the Company to post cash or other assets as collateral with the counterparty for contracts that are in a net liability position based on their fair values and the Company’s credit rating. If the interest rate swaps are in a net asset position based on their fair value, the counterparty will post collateral to the Company as requested. At June 30, 2019, the Company posted $8.7 million of cash as collateral to the counterparty and was presented within other assets on the consolidated statements of financial condition. Refer to Note 9 for further discussion of master netting arrangements and presentation within the Company's consolidated financial statements. The details of the junior subordinated debt interest rate swaps for the dates indicated were as follows:
For the three and six months ended June 30, 2019 and 2018, the Company did not record any ineffectiveness on these cash flow hedges within the consolidated statements of income. Net payments to the counterparty for the six months ended June 30, 2019 and 2018 were $318,000 and $489,000, respectively, and were classified as cash flows from operating activities in the Company's consolidated statements of cash flows. Fixed-Rate Mortgage Interest Rate Lock Commitments: As part of the origination process of a residential loan, the Company may enter into rate lock agreements with its borrower, which is considered an interest rate lock commitment. If the Company has the intention to sell the loan upon origination, it will account for the interest rate lock commitment as a derivative. The Company's pipeline of mortgage loans with fixed-rate interest rate lock commitments for which it intends to sell the loan upon origination were as follows for the dates indicated:
For the three months ended June 30, 2019 and 2018, the net unrealized gain from the change in fair value on the Company's fixed-rate mortgage rate locks reported within mortgage banking income, net, on the consolidated statements of income was $223,000 and $4,000, respectively. For the six months ended June 30, 2019 and 2018, the net unrealized gain (loss) from the change in fair value on the Company's fixed-rate mortgage rate locks reported within mortgage banking income, net, on the consolidated statements of income was $404,000 and ($8,000), respectively. Forward Delivery Commitments: The Company typically enters into a forward delivery commitment with a secondary market investor, which has been approved by the Company within its normal governance process, at the onset of the loan origination process. The Company may enter into these arrangements with the secondary market investors on a "best effort" or "mandatory delivery" basis. The Company's normal practice is typically to enter into these arrangements on a "best effort" basis. The Company enters into these arrangements with the secondary market investors to manage its interest rate exposure. The Company accounts for the forward delivery commitment as a derivative (but does not designate it as a hedge) upon origination of a loan identified as held for sale. The Company's forward delivery commitments on loans held for sale for the dates indicated were as follows:
For the three months ended June 30, 2019 and 2018, the net unrealized gain from the change in fair value on the Company's forward delivery commitments reported within mortgage banking income, net, on the consolidated statements of income was $159,000 and $69,000, respectively. For the six months ended June 30, 2019 and 2018, the net unrealized gain from the change in fair value on the Company's forward delivery commitments reported within mortgage banking income, net, on the consolidated statements of income was $242,000 and $50,000, respectively. FHLBB Advance Interest Rate Swaps: On February 25, 2015, the Bank entered into two $25.0 million one-year forward-starting interest rate swap arrangements with a counterparty to mitigate short-term interest rate risk. On February 25, 2019, the last $25.0 million tranche matured. The details of the Company's FHLBB advance interest rate swaps for the dates indicated were as follows:
Net payments received from the counterparty for the six months ended June 30, 2019 and 2018 were $32,000 and $2,000, respectively, and were classified as cash flows from operating activities in the consolidated statements of cash flows. The table below presents the effect of the Company’s derivative financial instruments included in OCI and current earnings for the periods indicated:
The Company expects approximately $1.3 million (pre-tax) to be reclassified to interest expense from AOCI, related to the Company’s cash flow hedges, in the next 12 months. This reclassification is due to anticipated payments that will be made on the swaps based upon the forward curve as of June 30, 2019. |
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Offsetting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Offsetting | BALANCE SHEET OFSETTING The Company does not offset the carrying value for derivative instruments or repurchase agreements on the consolidated statements of condition. The Company and Bank do net the amount recognized for the right to reclaim cash collateral against the obligation to return cash collateral arising from instruments executed with the same counterparty under a master netting arrangement. Collateral legally required to be pledged or received is monitored and adjusted as necessary. Refer to Note 7 for further discussion of repurchase agreements and Note 8 for further discussion of derivative instruments. The following table presents the Company's derivative positions and repurchase agreements, and the potential effect of netting arrangements on its financial position, as of the dates indicated:
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REGULATORY CAPITAL REQUIREMENTS |
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Regulatory Capital Requirements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REGULATORY CAPITAL REQUIREMENTS | REGULATORY CAPITAL REQUIREMENTS The Company and Bank are subject to various regulatory capital requirements administered by the FRB and the OCC. Failure to meet minimum capital requirements can result in mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. The Company and Bank are required to maintain certain levels of capital based on risk-adjusted assets. These capital requirements represent quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company and Bank's capital classification is also subject to qualitative judgments by our regulators about components, risk weightings and other factors. The quantitative measures established to ensure capital adequacy require the Company and Bank to maintain minimum amounts and ratios of total capital, Tier I capital, and common equity Tier I capital to risk-weighted assets, and of Tier I capital to average assets, or the leverage ratio. These guidelines apply to the Company on a consolidated basis. Under the current guidelines, banking organizations must have a minimum total risk-based capital ratio of 8.0%, a minimum Tier I risk-based capital ratio of 6.0%, a minimum common equity Tier I risk-based capital ratio of 4.5%, and a minimum leverage ratio of 4.0% in order to be "adequately capitalized." In addition to these requirements, banking organizations must maintain a capital conservation buffer consisting of common Tier I equity, subject to a transition schedule that was fully phased in on January 1, 2019. Effective January 1, 2019, the Company and the Bank were required to establish a capital conservation buffer of 2.50%, increasing the minimum required total risk-based capital, Tier I risk-based and common equity Tier I capital to risk-weighted assets they must maintain to avoid limits on capital distributions and certain bonus payments to executive officers and similar employees. The Company and Bank's risk-based capital ratios exceeded regulatory guidelines at June 30, 2019 and December 31, 2018, and, specifically, the Bank met the requirements to be considered "well capitalized" under prompt corrective action provisions for each period. There were no new conditions or events that occurred subsequent to June 30, 2019, that would change the Company or Bank's regulatory capital categorization. The following table presents the Company and Bank's regulatory capital ratios at the periods indicated:
In 2015, the Company issued $15.0 million of subordinated debentures, and in 2006 and 2008, it issued $43.0 million of junior subordinated debentures in connection with the issuance of trust preferred securities. Although the subordinated debentures and the junior subordinated debentures are recorded as liabilities on the Company's consolidated statements of condition, the Company is permitted, in accordance with regulatory guidelines, to include, subject to certain limits, each within its calculation of risk-based capital. At June 30, 2019 and December 31, 2018, $15.0 million of subordinated debentures were included as Tier II capital and were included in the calculation of the Company's total risk-based capital, and, at June 30, 2019 and December 31, 2018, $43.0 million of the junior subordinated debentures were included in Tier I and total risk-based capital for the Company. The Company and Bank's regulatory capital and risk-weighted assets fluctuate due to normal business, including profits and losses generated by the Company and Bank as well as changes to their asset mix. Of particular significance are changes within the Company and Bank's loan portfolio mix due to the differences in regulatory risk-weighting between retail and commercial loans. Furthermore, the Company and Bank's regulatory capital and risk-weighted assets are subject to change due to changes in GAAP and regulatory capital standards. The Company and Bank proactively monitor their regulatory capital and risk-weighted assets, and the impact of changes to their asset mix, and impact of proposed and pending changes as a result of new and/or amended GAAP standards and regulatory changes. |
EMPLOYEE BENEFIT PLANS |
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Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS The Company sponsors unfunded, non-qualified SERPs for certain officers and provides medical and life insurance to certain eligible retired employees. The components of net periodic benefit cost for the periods ended June 30, 2019 and 2018, were as follows: Supplemental Executive Retirement Plan:
Other Postretirement Benefit Plan:
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EARNINGS PER SHARE |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | EPS The following is an analysis of basic and diluted EPS, reflecting the application of the two-class method, as described below:
For the three and six months ended June 30, 2019 and 2018, there were no anti-dilutive stock based awards that have been excluded from the computation of potential common shares for purposes of calculating diluted EPS, because the average market price of the Company's common stock is greater than the exercise prices. Nonvested stock-based payment awards that contain non-forfeitable rights to dividends are participating securities and are included in the computation of EPS pursuant to the two-class method. The two-class method is an earnings allocation formula that determines EPS for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Certain of the Company’s nonvested stock-based awards qualify as participating securities. Net income is allocated between the common stock and participating securities pursuant to the two-class method. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period, excluding participating nonvested stock-based awards. Diluted EPS is computed in a similar manner, except that the denominator includes the number of additional common shares that would have been outstanding if potentially dilutive common shares were issued using the treasury stock method. |
FAIR VALUE MEASUREMENT AND DISCLOSURE |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENT AND DISCLOSURE | FAIR VALUE MEASUREMENT AND DISCLOSURE Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined using quoted market prices. However, in many instances, quoted market prices are not available. In such instances, fair values are determined using various valuation techniques. Various assumptions and observable inputs must be relied upon in applying these techniques. GAAP establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. GAAP permits an entity to choose to measure eligible financial instruments and other items at fair value. The Company has elected the fair value option for its loans held for sale. Electing the fair value option for loans held for sale enables the Company’s financial position to more clearly align with the economic value of the actively traded asset. The fair value hierarchy for valuation of an asset or liability is as follows: Level 1: Valuation is based upon unadjusted quoted prices in active markets for identical assets and liabilities that the entity has the ability to access as of the measurement date. Level 2: Valuation is determined from quoted prices for similar assets or liabilities in active markets, from quoted prices for identical or similar instruments in markets that are not active or by model-based techniques in which all significant inputs are observable in the market. Level 3: Valuation is derived from model-based and other techniques in which at least one significant input is unobservable and which may be based on the Company’s own estimates about the assumptions that market participants would use to value the asset or liability. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon model-based techniques incorporating various assumptions including interest rates, prepayment speeds and credit losses. Assets and liabilities valued using model-based techniques are classified as either Level 2 or Level 3, depending on the lowest level classification of an input that is considered significant to the overall valuation. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Financial Instruments Recorded at Fair Value on a Recurring Basis Loans Held For Sale: The fair value of loans held for sale is determined using quoted secondary market prices or executed sales agreements and is classified as Level 2. Debt Securities: The fair value of investments in debt securities is reported utilizing prices provided by an independent pricing service based on recent trading activity and other observable information including, but not limited to, dealer quotes, market spreads, cash flows, market interest rate curves, market consensus prepayment speeds, credit information, and the bond’s terms and conditions. The fair value of debt securities is classified as Level 2. Equity Securities: The fair value of investments in equity securities is reported utilizing market prices based on recent trading activity and dealer quotes. These equity securities are traded on inactive markets and are classified as Level 2. Derivatives: The fair value of the Company's interest rate swaps are determined using inputs that are observable in the market place obtained from third parties including yield curves, publicly available volatilities, and floating indexes and, accordingly, are classified as Level 2 inputs. The credit value adjustments associated with derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. As of June 30, 2019 and December 31, 2018, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives due to collateral postings. The fair value of the Company's fixed-rate interest rate lock commitments were determined using secondary market pricing for loans with similar structures, including term, rate and borrower credit quality, adjusted for the Company's pull-through rate estimate (i.e. estimate of loans within its pipeline that will ultimately complete the origination process and be funded). The Company has classified its fixed-rate interest rate lock commitments as Level 2, as the quoted secondary market prices are the more significant input, and although the Company's internal pull-through rate estimate is a Level 3 estimate, it is less significant to the ultimate valuation. The fair value of the Company's forward delivery commitments are determined using secondary market pricing for loans with similar structures, including term, rate and borrower credit quality, and the locked and agreed to price with the secondary market investor. The Company has classified its fixed-rate interest rate lock commitments as Level 2. The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value, for the dates indicated:
The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during the six months ended June 30, 2019. The Company’s policy for determining transfers between levels occurs at the end of the reporting period when circumstances in the underlying valuation criteria change and result in transfer between levels. Financial Instruments Recorded at Fair Value on a Nonrecurring Basis The Company may be required, from time to time, to measure certain financial assets and financial liabilities at fair value on a nonrecurring basis in accordance with GAAP. These include assets that are measured at the lower of cost or market value that were recognized at fair value below cost at the end of the period. Collateral-Dependent Impaired Loans: Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. The Company's policy is to evaluate individually for impairment loans with a principal balance of $500,000 or more, that are classified as substandard or doubtful and are on non-accrual status. Once the population of loans is identified for individual impairment assessment, the Company measures these loans for impairment by comparing net realizable value, which is the fair value of the collateral, less estimated costs to sell, to the carrying value of the loan. If the net realizable value of the loan is less than the carrying value of the loan, then a loss is recognized as part of the ALL to adjust the loan's carrying value to net realizable value. Accordingly, certain collateral-dependent impaired loans are subject to measurement at fair value on a non-recurring basis. Management has estimated the fair values of these assets using Level 2 inputs, such as the fair value of collateral based on independent third-party market approach appraisals for collateral-dependent loans, and Level 3 inputs where circumstances warrant an adjustment to the appraised value based on the age of the appraisal and/or comparable sales, condition of the collateral, and market conditions. Servicing Assets: The Company accounts for mortgage servicing assets at cost, subject to impairment testing. When the carrying value of a tranche exceeds fair value, a valuation allowance is established to reduce the carrying cost to fair value. Fair value is based on a valuation model that calculates the present value of estimated net servicing income. The Company obtains a third-party valuation based upon loan level data including note rate, type and term of the underlying loans. The model utilizes two significant unobservable inputs, namely loan prepayment assumptions and the discount rate used, to calculate the fair value of each tranche, and, as such, the Company has classified the model within Level 3 of the fair value hierarchy. At June 30, 2019 and December 31, 2018, the mortgage servicing assets were not carried at fair value. Non-Financial Instruments Recorded at Fair Value on a Non-Recurring Basis The Company has no non-financial assets or non-financial liabilities measured at fair value on a recurring basis. Non-financial assets measured at fair value on a non-recurring basis consist of OREO, and goodwill and other intangible assets. OREO: OREO properties acquired through foreclosure or deed in lieu of foreclosure are recorded at net realizable value, which is the fair value of the real estate, less estimated costs to sell. Any write-down of the recorded investment in the related loan is charged to the ALL upon transfer to OREO. Upon acquisition of a property, a current appraisal is used or an internal valuation is prepared to substantiate fair value of the property. After foreclosure, management periodically, but at least annually, obtains updated valuations of the OREO properties and, if additional impairments are deemed necessary, the subsequent write-downs for declines in value are recorded through a valuation allowance and a provision for losses charged to other non-interest expense within the consolidated statements of income. As management considers appropriate, adjustments are made to the appraisal obtained for the OREO property to account for recent sales activity of comparable properties, changes in the condition of the property, and changes in market conditions. These adjustments are not observable in an active market and are classified as Level 3. Goodwill and Other Intangible Assets: Goodwill represents the excess cost of an acquisition over the fair value of the net assets acquired. The fair value of goodwill is estimated by utilizing several standard valuation techniques, including discounted cash flow analyses, bank merger multiples, and/or an estimation of the impact of business conditions and investor activities on the long-term value of the goodwill. Should an impairment occur, the associated goodwill is written-down to fair value and the impairment charge is recorded within non-interest expense in the consolidated statements of income. The Company conducts an annual impairment test of goodwill in the fourth quarter each year, or more frequently as necessary. There have been no indications or triggering events during the six months ended June 30, 2019, for which management believes that it is more likely than not that goodwill is impaired. The Company's core deposit intangible assets represent the estimated value of acquired customer relationships and are amortized on a straight-line basis over the estimated life of those relationships. Core deposit intangibles are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If necessary, management will test the core deposit intangibles for impairment by comparing their carrying value to the expected undiscounted cash flows of the assets. If the undiscounted cash flows of the intangible assets exceed their carrying value then the intangible assets are deemed to be fully recoverable and not impaired. However, if the undiscounted cash flows of the intangible assets are less than their carrying value, then an impairment charge is recorded to mark the carrying value of the intangible assets to fair value. There were no events or changes in circumstances for the six months ended June 30, 2019, that indicated the carrying amount may not be recoverable. The table below highlights financial and non-financial assets measured and recorded at fair value on a non-recurring basis for the dates indicated:
The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis for the dates indicated:
The estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below as of the dates indicated:
Excluded from the summary were financial instruments measured at fair value on a recurring and nonrecurring basis, as previously described. The Company considers its financial instruments' current use to be the highest and best use of the instruments. |
INVESTMENTS (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Amortized Costs and Estimated Fair Values of Available-For-Sale Securities | The following table summarizes the amortized cost and estimated fair values of AFS and HTM investments, as of the dates indicated:
The following table summarizes the cost and estimated fair values of the Company's investment in equity securities, FHLBB stock and FRBB stock as presented within other investments on the consolidated statements of condition, as of the dates indicated:
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Unrealized Gross Losses and Estimated Fair Values of Investment Securities by Length of Time that Individual Securities in Each Category in Continuous Loss Position | The following table presents the estimated fair values and gross unrealized losses on AFS and HTM investments that were in a continuous loss position at June 30, 2019 and December 31, 2018, by length of time that an individual security in each category has been in a continuous loss position:
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Schedule of Sale of AFS Investments | The following table details the Company's sales of AFS investments for the period indicated below:
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Amortized Cost and Estimated Fair Values of Debt Securities by Contractual Maturity | The amortized cost and estimated fair values of the Company's AFS and HTM investments by contractual maturity at June 30, 2019, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) |
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Financing Receivable, Modifications [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | The following represents loan modifications that qualify as TDRs that occurred for the three and six months ended June 30, 2019 and 2018:
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Composition of Loan Portfolio, Excluding Residential Loans Held for Sale | The composition of the Company’s loan portfolio, excluding residential loans held for sale, was as follows for the dates indicated:
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Schedule of Loan Balances by Portfolio Segment | The loan balances for each portfolio segment presented above are net of their respective unamortized fair value mark discount on acquired loans and net of unamortized loan origination costs for the dates indicated:
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Summary of Activity in Allowance for Loan Losses | The following presents the activity in the ALL and select loan information by portfolio segment for the periods indicated:
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Schedule of Provision for Credit Losses | The following reconciles the provision for loan losses to the provision for credit losses as presented on the consolidated statements of income for the periods indicated:
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Credit Risk Exposure Indicators by Portfolio Segment | The following summarizes credit risk exposure indicators by portfolio segment as of the following dates:
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Loan Aging Analysis by Portfolio Segment | The following is a loan aging analysis by portfolio segment (including loans past due over 90 days and non-accrual loans) and a summary of non-accrual loans, which include TDRs, and loans past due over 90 days and accruing as of the following dates:
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Troubled Debt Restructuring and Specific Reserve Related to TDRs | The following is a summary of TDRs, by portfolio segment, and the associated specific reserve included within the ALL as of the periods indicated:
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Summary of Impaired Loan Balances and Associated Allowance by Portfolio Segment | The following is a summary of impaired loan balances and the associated allowance by portfolio segment as of and for the periods indicated:
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LEASES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Lease Expense | The following right-of-use assets and lease liabilities have been reported within other assets and other liabilities on the consolidated statements of condition for the period indicated:
In accordance with ASC 842, the components of lease expense for the periods indicated were as follows:
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Supplemental Cash Flow and Balance Sheet Information | Supplemental cash flow information and non-cash activity related to leases was as follows for the period indicated:
Supplemental balance sheet information related to leases was as follows for the period indicated:
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Maturities of Operating Lease Liabilities | The following summarizes the remaining scheduled future minimum lease payments for operating and finance leases as of June 30, 2019:
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Maturities of Finance Lease Liabilities | The following summarizes the remaining scheduled future minimum lease payments for operating and finance leases as of June 30, 2019:
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Schedule Of Future Minimum Lease Payments For Operating And Capital Leases [Table Text Block] | The following summarizes expected future minimum lease payments, in accordance with ASC 840, as of December 31, 2018:
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BORROWINGS (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Borrowed Funds Outstanding | The following summarizes the Company's short-term and long-term borrowed funds as presented on the consolidated statements of condition at:
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REPURCHASE AGREEMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Underlying Assets of Repurchase Agreements when Amount of Repurchase Agreements Exceeds 10 Percent of Assets | The table below sets forth information regarding the Company’s repurchase agreements accounted for as secured borrowings and types of collateral for the periods indicated:
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COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Contractual and Notional Amounts of Financial Instruments | The following is a summary of the contractual and notional amounts of the Company’s off-balance sheet financial instruments:
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Summary of Derivative Financial Instruments | The details of the junior subordinated debt interest rate swaps for the dates indicated were as follows:
The details of the interest rate swap for the date indicated was as follows:
The following table presents the total positions, notional and fair value of the Company's customer loans swaps with its commercial customers and the corresponding interest rate swap agreements with counterparty for the dates indicated:
The Company's pipeline of mortgage loans with fixed-rate interest rate lock commitments for which it intends to sell the loan upon origination were as follows for the dates indicated:
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Forward Delivery Commitments | The Company's forward delivery commitments on loans held for sale for the dates indicated were as follows:
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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:
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BALANCE SHEET OFFSETTING (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Offsetting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Offsetting Assets [Table Text Block] | The following table presents the Company's derivative positions and repurchase agreements, and the potential effect of netting arrangements on its financial position, as of the dates indicated:
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Offsetting Liabilities [Table Text Block] | The following table presents the Company's derivative positions and repurchase agreements, and the potential effect of netting arrangements on its financial position, as of the dates indicated:
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REGULATORY CAPITAL REQUIREMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following table presents the Company and Bank's regulatory capital ratios at the periods indicated:
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EMPLOYEE BENEFIT PLANS (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Period Benefit Cost | The components of net periodic benefit cost for the periods ended June 30, 2019 and 2018, were as follows: Supplemental Executive Retirement Plan:
Other Postretirement Benefit Plan:
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EARNINGS PER SHARE (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Analysis of Basic and Diluted Earnings Per Share | The following is an analysis of basic and diluted EPS, reflecting the application of the two-class method, as described below:
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FAIR VALUE MEASUREMENT AND DISCLOSURE (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value, for the dates indicated:
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Summary of Assets Measured at Fair Value on Non Recurring Basis | The table below highlights financial and non-financial assets measured and recorded at fair value on a non-recurring basis for the dates indicated:
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Valuation Methodology and Unobservable Inputs for Level Three Assets Measured at Fair Value on Non Recurring Basis | The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis for the dates indicated:
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Carrying Amounts and Estimated Fair Value for Financial Instrument Assets and Liabilities | The estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below as of the dates indicated:
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RECENT ACCOUNTING PRONOUNCEMENTS NEW ACCOUNTING PRONOUNCEMENTS (Narrative) (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Jan. 01, 2019 |
Jun. 30, 2018 |
|||||||
---|---|---|---|---|---|---|---|---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Operating lease assets | $ 13,120 | |||||||||
Finance lease assets | 1,557 | |||||||||
Operating lease liabilities | [1] | 13,150 | ||||||||
ASU 2016-02 | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Operating lease assets | $ 12,100 | |||||||||
Finance lease assets | 12,100 | |||||||||
Operating lease liabilities | $ 12,300 | |||||||||
Cumulative effect adjustment | [2] | 254 | ||||||||
ASU 2016-02 | Retained Earnings | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Cumulative effect adjustment | [2] | $ 254 | ||||||||
ASU 2016-01 | Retained Earnings | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||
Cumulative effect adjustment | [3] | $ 198 | ||||||||
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INVESTMENTS (Narrative) (Detail) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019
USD ($)
security
|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2019
USD ($)
security
|
Jun. 30, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
security
|
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Schedule of Investments [Line Items] | |||||
Net unrealized gains (losses) on available-for-sale securities, net of tax | $ 3,912,000 | $ 3,912,000 | $ (17,826,000) | ||
Deferred tax assets, unrealized losses on available for sale securities | $ 1,100,000 | 1,100,000 | $ 4,900,000 | ||
Payments to acquire investments | $ 98,800,000 | $ 100,600,000 | |||
AFS securities in unrealized loss positions, number of positions | security | 125 | 125 | 302 | ||
AFS and HTM securities in Continuous Unrealized Loss Position | $ 387,400,000 | $ 387,400,000 | $ 722,200,000 | ||
AFS and HTM Securities Unrealized Loss Accumulated in Investments | 5,200,000 | 5,200,000 | 24,600,000 | ||
Fair Value - 12 Months of More | $ 387,390,000 | $ 387,390,000 | $ 621,294,000 | ||
Unrealized Loss as a Percent of Fair Value | 1.40% | 1.40% | 3.40% | ||
Carrying Value of Investments Sold | $ 45,800,000 | $ 9,900,000 | $ 45,800,000 | 9,900,000 | |
Debt Securities, Available-for-sale, Gain (Loss) | 27,000 | 31,000 | |||
Security pledged as collateral, amortized cost | 667,300,000 | 667,300,000 | $ 734,100,000 | ||
Security pledged as collateral, fair value | 670,500,000 | 670,500,000 | 714,400,000 | ||
Unrealized loss, change in fair value of bank stock equity securities | (159,000) | 11,000 | 84,000 | $ (24,000) | |
Gain on sale of other investment | $ 195,000 | ||||
Mortgage Backed Securities and Collateralized Mortgage Obligations | |||||
Schedule of Investments [Line Items] | |||||
AFS and HTM Securities Unrealized Loss Accumulated in Investments | 5,200,000 | 5,200,000 | 23,300,000 | ||
Fair Value - 12 Months of More | 383,300,000 | 383,300,000 | 591,900,000 | ||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | |||||
Schedule of Investments [Line Items] | |||||
Fair Value - 12 Months of More | 246,463,000 | 246,463,000 | 364,430,000 | ||
Collateralized Mortgage Obligations | |||||
Schedule of Investments [Line Items] | |||||
Fair Value - 12 Months of More | $ 136,876,000 | $ 136,876,000 | $ 227,461,000 |
INVESTMENTS (Summary of Amortized Costs and Estimated Fair Values of Available-For-Sale Securities) (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
AFS Investments (carried at fair value): | ||
Available-for-sale securities, at fair value (book value of $915,099 and $933,399, respectively) | $ 920,083 | $ 910,692 |
HTM Investments (carried at amortized cost): | ||
Amortized Cost | 1,304 | 1,307 |
Unrealized Gains | 31 | 8 |
Unrealized Losses | 0 | (24) |
Fair Value | 1,335 | 1,291 |
Obligations of states and political subdivisions | ||
AFS Investments (carried at fair value): | ||
Amortized Cost | 87,223 | 94,430 |
Unrealized Gains | 1,932 | 216 |
Unrealized Losses | (26) | (894) |
Available-for-sale securities, at fair value (book value of $915,099 and $933,399, respectively) | 89,129 | 93,752 |
HTM Investments (carried at amortized cost): | ||
Amortized Cost | 1,304 | 1,307 |
Unrealized Gains | 31 | 8 |
Unrealized Losses | 0 | (24) |
Fair Value | 1,335 | 1,291 |
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||
AFS Investments (carried at fair value): | ||
Amortized Cost | 455,330 | 466,613 |
Unrealized Gains | 3,250 | 583 |
Unrealized Losses | (2,203) | (13,524) |
Available-for-sale securities, at fair value (book value of $915,099 and $933,399, respectively) | 456,377 | 453,672 |
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
AFS Investments (carried at fair value): | ||
Amortized Cost | 351,149 | 351,958 |
Unrealized Gains | 3,940 | 1,007 |
Unrealized Losses | (3,018) | (10,071) |
Available-for-sale securities, at fair value (book value of $915,099 and $933,399, respectively) | 352,071 | 342,894 |
Subordinated corporate bonds | ||
AFS Investments (carried at fair value): | ||
Amortized Cost | 21,397 | 20,398 |
Unrealized Gains | 1,109 | 23 |
Unrealized Losses | 0 | (47) |
Available-for-sale securities, at fair value (book value of $915,099 and $933,399, respectively) | 22,506 | 20,374 |
Total AFS investments | ||
AFS Investments (carried at fair value): | ||
Amortized Cost | 915,099 | 933,399 |
Unrealized Gains | 10,231 | 1,829 |
Unrealized Losses | (5,247) | (24,536) |
Available-for-sale securities, at fair value (book value of $915,099 and $933,399, respectively) | $ 920,083 | $ 910,692 |
INVESTMENTS (Schedule of Unrealized Gross Losses and Estimated Fair values of Investment Securities) (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value - Less Than 12 Months | $ 0 | $ 100,011 |
Unrealized Losses - Less Than 12 Months | 0 | (599) |
Fair Value - 12 Months of More | 387,390 | 621,294 |
Unrealized Losses - 12 Months or More | (5,247) | (23,937) |
Fair Value | 387,390 | 721,305 |
Unrealized losses | (5,247) | (24,536) |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 509 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (5) | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 411 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (19) | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 920 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | (24) | |
Obligations of states and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value - Less Than 12 Months | 0 | 36,218 |
Unrealized Losses - Less Than 12 Months | 0 | (281) |
Fair Value - 12 Months of More | 4,051 | 28,437 |
Unrealized Losses - 12 Months or More | (26) | (613) |
Fair Value | 4,051 | 64,655 |
Unrealized losses | (26) | (894) |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value | 509 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (5) | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value | 411 | |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (19) | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value | 920 | |
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss | (24) | |
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value - Less Than 12 Months | 0 | 46,459 |
Unrealized Losses - Less Than 12 Months | 0 | (252) |
Fair Value - 12 Months of More | 246,463 | 364,430 |
Unrealized Losses - 12 Months or More | (2,203) | (13,272) |
Fair Value | 246,463 | 410,889 |
Unrealized losses | (2,203) | (13,524) |
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value - Less Than 12 Months | 0 | 5,956 |
Unrealized Losses - Less Than 12 Months | 0 | (40) |
Fair Value - 12 Months of More | 136,876 | 227,461 |
Unrealized Losses - 12 Months or More | (3,018) | (10,031) |
Fair Value | 136,876 | 233,417 |
Unrealized losses | $ (3,018) | (10,071) |
Subordinated corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value - Less Than 12 Months | 11,378 | |
Unrealized Losses - Less Than 12 Months | (26) | |
Fair Value - 12 Months of More | 966 | |
Unrealized Losses - 12 Months or More | (21) | |
Fair Value | 12,344 | |
Unrealized losses | $ (47) |
INVESTMENTS (Schedule of Sale of AFS Investments) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Schedule of Sale of AFS Investments [Abstract] | ||||
Proceeds from Sale of Available-for-sale Securities | $ 45,826 | $ 9,898 | $ 45,826 | $ 9,898 |
Available-for-sale Securities, Gross Realized Gains | 371 | 31 | 371 | 31 |
Available-for-sale Securities, Gross Realized Losses | $ (344) | $ 0 | $ (344) | $ 0 |
INVESTMENTS (Schedule of Amortized Cost and Estimated Fair Values of Debt Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Available-for-sale, Amortized Cost | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 69,611 | |
Due after five years through ten years | 231,573 | |
Due after ten years | 613,916 | |
Amortized cost, total | 915,100 | |
Available-for-sale, Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 69,758 | |
Due after five years through ten years | 234,217 | |
Due after ten years | 616,108 | |
Fair value, total | 920,083 | |
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract] | ||
Due in one year or less | 0 | |
Due after one year through five years | 0 | |
Due after five years through ten years | 1,304 | |
Due after ten years | 0 | |
Amortized Cost | 1,304 | $ 1,307 |
Debt Securities, Held-to-maturity, Maturity, Allocated and Single Maturity Date, Fair Value [Abstract] | ||
Due in one year or less | 0 | |
Due after one year through five years | 0 | |
Due after five years through ten years | 1,335 | |
Due after ten years | 0 | |
Debt Securities, Held-to-maturity, Fair Value | $ 1,335 | $ 1,291 |
INVESTMENTS (Schedule of Amortized Cost and Fair Value of Other Investments) (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Investments, Debt and Equity Securities [Abstract] | |||
Equity securities - bank stock, Amortized Cost | $ 544 | $ 544 | |
Equity securities - bank stock, Unrealized Gains | 286 | $ 202 | |
Equity securities - bank stock, Unrealized Losses | 0 | 0 | |
Equity securities - bank stock, Fair Value | 830 | 746 | |
FHLBB (carried at cost) | 5,509 | 8,559 | |
FRB (carried at cost) | 5,374 | 5,374 | |
Other Investments, Amortized Cost | 11,427 | 14,477 | |
Other Investments, Unrealized Gain | 286 | 202 | |
Other Investments, Unrealized Loss | 0 | $ 0 | |
Other Investments, Fair Value | $ 11,713 | $ 14,679 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Narrative) (Details) |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2019
USD ($)
loan
|
Jun. 30, 2018
USD ($)
loan
|
Jun. 30, 2019
USD ($)
loan
|
Jun. 30, 2018
USD ($)
loan
|
Dec. 31, 2018
USD ($)
|
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and Leases Receivable, Related Parties, Description | At June 30, 2019 and December 31, 2018, outstanding loans to certain officers, directors and their associated companies was less than 5% of the Company's shareholders' equity. | At June 30, 2019 and December 31, 2018, outstanding loans to certain officers, directors and their associated companies was less than 5% of the Company's shareholders' equity. | |||
Other industry exposures | 0 | ||||
Interest lost on nonaccrual loans | $ 115,000 | $ 174,000 | $ 224,000 | $ 336,000 | |
Loans modified | loan | 0 | 1 | 0 | 1 | |
Proceeds from the sale of mortgage loans | $ 79,575,000 | $ 99,778,000 | |||
Gain on sale of mortgage loans | 1,998,000 | 2,550,000 | |||
Loans held for sale, at fair value (book value of $13,088 and $4,314, respectively) | $ 13,113,000 | 13,113,000 | $ 4,403,000 | ||
FHLB advances, general debt obligations, pledged collateral | 1,200,000,000 | 1,200,000,000 | 1,100,000,000 | ||
Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans restructured due to credit difficulties that are now performing | 3,500,000 | 3,500,000 | 3,900,000 | ||
Financing receivables impaired TDR non-performing | 600,000 | 600,000 | 513,000 | ||
Residential Real Estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Mortgage Loans in Process of Foreclosure, Amount | 2,500,000 | 2,500,000 | 2,300,000 | ||
Fixed Rate Residential Mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Proceeds from the sale of mortgage loans | 49,600,000 | $ 52,000,000 | 77,600,000 | 97,200,000 | |
Gain on sale of mortgage loans | 1,200,000 | $ 1,300,000 | 2,000,000 | $ 2,600,000 | |
Loans held for sale, at fair value (book value of $13,088 and $4,314, respectively) | 13,100,000 | 13,100,000 | 4,300,000 | ||
Home Equity Loan [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans modified | loan | 1 | 1 | |||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 299,000 | $ 299,000 | |||
Nonoperating Income (Expense) | Fixed Rate Residential Mortgage | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Gain on sale of mortgage loans | $ (60,000) | $ 23,000 | (64,000) | $ 32,000 | |
Unrealized gain (loss) on loans held for sale | $ 25,000 | $ 89,000 | |||
Minimum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Months | 18 | 18 | |||
Minimum | HPFC Portfolio Segment | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Term to maturity | 7 years | ||||
Maximum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of Months | 24 | 24 | |||
Maximum | HPFC Portfolio Segment | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Term to maturity | 10 years | ||||
Non-Residential Building Operators Industry Sector | Loan Concentration Risk | Total Loan Portfolio | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration risk (percentage) | 12.00% | ||||
Non-Residential Building Operators Industry Sector | Loan Concentration Risk | Commercial Real Estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Concentration risk (percentage) | 31.00% |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Composition of Loan Portfolio) (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
Jun. 30, 2018 |
---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 3,100,324 | $ 3,026,222 | $ 2,867,529 |
Residential Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 1,035,792 | 992,866 | |
Loans | 1,035,792 | 992,866 | 907,910 |
Commercial Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 1,260,639 | 1,269,533 | |
Loans | 1,260,639 | 1,269,533 | 1,190,052 |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 428,676 | 381,780 | |
Loans | 428,676 | 381,780 | 386,393 |
Home Equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 323,536 | 327,763 | |
Loans | 323,536 | 327,763 | 323,671 |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 23,665 | 20,624 | |
Loans | 23,665 | 20,624 | 19,506 |
HPFC Portfolio Segment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 28,016 | 33,656 | |
Loans | $ 28,016 | $ 33,656 | $ 39,997 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Unamortized fair value mark and costs) (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Receivables [Abstract] | ||
Net Unamortized fair Value Mark (Discount) on Loans | $ 3,240 | $ 3,936 |
Loans and Leases Receivable, Deferred Income | (2,586) | (1,865) |
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | $ 654 | $ 2,071 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Activity in Allowance for Loan Losses by Portfolio Segment) (Details) - USD ($) |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Reserve for unfunded commitments | $ 14,000 | $ 16,000 | $ 14,000 | $ 16,000 | $ 22,000 |
Activity in ALL: | |||||
Beginning balance | 25,201,000 | 22,990,000 | 24,712,000 | 24,171,000 | 24,171,000 |
Loans charged off | (271,000) | (389,000) | (607,000) | (1,192,000) | (2,248,000) |
Recoveries | 58,000 | 77,000 | 133,000 | 199,000 | 1,944,000 |
Provision (credit)(1) | 1,175,000 | 990,000 | 1,925,000 | 490,000 | 845,000 |
Ending balance | 26,163,000 | 23,668,000 | 26,163,000 | 23,668,000 | 24,712,000 |
Ending Balance: Individually evaluated for impairment | 1,183,000 | 834,000 | 1,183,000 | 834,000 | 824,000 |
Ending Balance: Collectively evaluated for impairment | 24,980,000 | 22,834,000 | 24,980,000 | 22,834,000 | 23,888,000 |
Ending Balance: Individually evaluated for impairment | 6,443,000 | 12,591,000 | 6,443,000 | 12,591,000 | 6,926,000 |
Ending Balance: Collectively evaluated for impairment | 3,093,881,000 | 2,854,938,000 | 3,093,881,000 | 2,854,938,000 | 3,019,296,000 |
Total Loans Outstanding | 3,100,324,000 | 2,867,529,000 | 3,100,324,000 | 2,867,529,000 | 3,026,222,000 |
Residential Real Estate | |||||
Activity in ALL: | |||||
Beginning balance | 6,153,000 | 5,497,000 | 6,071,000 | 5,086,000 | 5,086,000 |
Loans charged off | (14,000) | (85,000) | (25,000) | (116,000) | (173,000) |
Recoveries | 2,000 | 15,000 | 4,000 | 15,000 | 90,000 |
Provision (credit)(1) | 108,000 | 352,000 | 199,000 | 794,000 | 1,068,000 |
Ending balance | 6,249,000 | 5,779,000 | 6,249,000 | 5,779,000 | 6,071,000 |
Ending Balance: Individually evaluated for impairment | 524,000 | 585,000 | 524,000 | 585,000 | 586,000 |
Ending Balance: Collectively evaluated for impairment | 5,725,000 | 5,194,000 | 5,725,000 | 5,194,000 | 5,485,000 |
Ending Balance: Individually evaluated for impairment | 4,472,000 | 5,400,000 | 4,472,000 | 5,400,000 | 4,762,000 |
Ending Balance: Collectively evaluated for impairment | 1,031,320,000 | 902,510,000 | 1,031,320,000 | 902,510,000 | 988,104,000 |
Total Loans Outstanding | 1,035,792,000 | 907,910,000 | 1,035,792,000 | 907,910,000 | 992,866,000 |
Commercial Real Estate | |||||
Activity in ALL: | |||||
Beginning balance | 11,838,000 | 10,286,000 | 11,654,000 | 11,863,000 | 11,863,000 |
Loans charged off | 0 | (86,000) | (65,000) | (512,000) | (512,000) |
Recoveries | 3,000 | 2,000 | 7,000 | 15,000 | 28,000 |
Provision (credit)(1) | 311,000 | 108,000 | 556,000 | (1,056,000) | 275,000 |
Ending balance | 12,152,000 | 10,310,000 | 12,152,000 | 10,310,000 | 11,654,000 |
Ending Balance: Individually evaluated for impairment | 27,000 | 23,000 | 27,000 | 23,000 | 23,000 |
Ending Balance: Collectively evaluated for impairment | 12,125,000 | 10,287,000 | 12,125,000 | 10,287,000 | 11,631,000 |
Ending Balance: Individually evaluated for impairment | 409,000 | 5,093,000 | 409,000 | 5,093,000 | 930,000 |
Ending Balance: Collectively evaluated for impairment | 1,260,230,000 | 1,184,959,000 | 1,260,230,000 | 1,184,959,000 | 1,268,603,000 |
Total Loans Outstanding | 1,260,639,000 | 1,190,052,000 | 1,260,639,000 | 1,190,052,000 | 1,269,533,000 |
Commercial | |||||
Activity in ALL: | |||||
Beginning balance | 3,616,000 | 4,126,000 | 3,620,000 | 4,171,000 | 4,171,000 |
Loans charged off | (217,000) | (127,000) | (453,000) | (298,000) | (736,000) |
Recoveries | 49,000 | 57,000 | 111,000 | 120,000 | 1,770,000 |
Provision (credit)(1) | 659,000 | 247,000 | 829,000 | 310,000 | (1,585,000) |
Ending balance | 4,107,000 | 4,303,000 | 4,107,000 | 4,303,000 | 3,620,000 |
Ending Balance: Individually evaluated for impairment | 322,000 | 0 | 322,000 | 0 | 53,000 |
Ending Balance: Collectively evaluated for impairment | 3,785,000 | 4,303,000 | 3,785,000 | 4,303,000 | 3,567,000 |
Ending Balance: Individually evaluated for impairment | 675,000 | 1,611,000 | 675,000 | 1,611,000 | 786,000 |
Ending Balance: Collectively evaluated for impairment | 428,001,000 | 384,782,000 | 428,001,000 | 384,782,000 | 380,994,000 |
Total Loans Outstanding | 428,676,000 | 386,393,000 | 428,676,000 | 386,393,000 | 381,780,000 |
Home Equity | |||||
Activity in ALL: | |||||
Beginning balance | 3,027,000 | 2,427,000 | 2,796,000 | 2,367,000 | 2,367,000 |
Loans charged off | (34,000) | (75,000) | (44,000) | (224,000) | (476,000) |
Recoveries | 0 | 1,000 | 0 | 44,000 | 44,000 |
Provision (credit)(1) | (1,000) | 263,000 | 240,000 | 429,000 | 861,000 |
Ending balance | 2,992,000 | 2,616,000 | 2,992,000 | 2,616,000 | 2,796,000 |
Ending Balance: Individually evaluated for impairment | 310,000 | 226,000 | 310,000 | 226,000 | 162,000 |
Ending Balance: Collectively evaluated for impairment | 2,682,000 | 2,390,000 | 2,682,000 | 2,390,000 | 2,634,000 |
Ending Balance: Individually evaluated for impairment | 887,000 | 487,000 | 887,000 | 487,000 | 442,000 |
Ending Balance: Collectively evaluated for impairment | 322,649,000 | 323,184,000 | 322,649,000 | 323,184,000 | 327,321,000 |
Total Loans Outstanding | 323,536,000 | 323,671,000 | 323,536,000 | 323,671,000 | 327,763,000 |
Consumer | |||||
Activity in ALL: | |||||
Beginning balance | 259,000 | 230,000 | 234,000 | 233,000 | 233,000 |
Loans charged off | (6,000) | (16,000) | (20,000) | (42,000) | (96,000) |
Recoveries | 4,000 | 2,000 | 11,000 | 5,000 | 11,000 |
Provision (credit)(1) | 126,000 | 44,000 | 158,000 | 64,000 | 86,000 |
Ending balance | 383,000 | 260,000 | 383,000 | 260,000 | 234,000 |
Ending Balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Ending Balance: Collectively evaluated for impairment | 383,000 | 260,000 | 383,000 | 260,000 | 234,000 |
Ending Balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | 6,000 |
Ending Balance: Collectively evaluated for impairment | 23,665,000 | 19,506,000 | 23,665,000 | 19,506,000 | 20,618,000 |
Total Loans Outstanding | 23,665,000 | 19,506,000 | 23,665,000 | 19,506,000 | 20,624,000 |
HPFC Portfolio Segment | |||||
Activity in ALL: | |||||
Beginning balance | 308,000 | 424,000 | 337,000 | 451,000 | 451,000 |
Loans charged off | 0 | 0 | 0 | 0 | (255,000) |
Recoveries | 0 | 0 | 0 | 0 | 1,000 |
Provision (credit)(1) | (28,000) | (24,000) | (57,000) | (51,000) | 140,000 |
Ending balance | 280,000 | 400,000 | 280,000 | 400,000 | 337,000 |
Ending Balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Ending Balance: Collectively evaluated for impairment | 280,000 | 400,000 | 280,000 | 400,000 | 337,000 |
Ending Balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
Ending Balance: Collectively evaluated for impairment | 28,016,000 | 39,997,000 | 28,016,000 | 39,997,000 | 33,656,000 |
Total Loans Outstanding | $ 28,016,000 | $ 39,997,000 | $ 28,016,000 | $ 39,997,000 | $ 33,656,000 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Provision for Credit Losses) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract] | |||||
Provision (credit)(1) | $ 1,175 | $ 990 | $ 1,925 | $ 490 | $ 845 |
Change in reserve for unfunded commitments | (2) | (7) | (8) | (4) | 2 |
Provision for credit losses | $ 1,173 | $ 983 | $ 1,917 | $ 486 | $ 847 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Credit Risk Exposure Indicators by Portfolio Segment) (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
Jun. 30, 2018 |
---|---|---|---|
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $ 3,100,324 | $ 3,026,222 | $ 2,867,529 |
Pass (Grades 1-6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,706,023 | 2,636,966 | |
Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 344,150 | 346,512 | |
Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 17,703 | 12,619 | |
Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 29,397 | 28,250 | |
Non-performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 3,051 | 1,875 | |
Residential Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,035,792 | 992,866 | 907,910 |
Residential Real Estate | Pass (Grades 1-6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,026,460 | 983,086 | |
Residential Real Estate | Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 482 | 887 | |
Residential Real Estate | Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 8,850 | 8,893 | |
Commercial Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,260,639 | 1,269,533 | 1,190,052 |
Commercial Real Estate | Pass (Grades 1-6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,229,524 | 1,247,190 | |
Commercial Real Estate | Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 15,072 | 7,921 | |
Commercial Real Estate | Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 16,043 | 14,422 | |
Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 428,676 | 381,780 | 386,393 |
Commercial | Pass (Grades 1-6) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 423,281 | 374,429 | |
Commercial | Special Mention (Grade 7) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,051 | 3,688 | |
Commercial | Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 3,344 | 3,663 | |
Home Equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 323,536 | 327,763 | 323,671 |
Home Equity | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 320,866 | 325,917 | |
Home Equity | Non-performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,670 | 1,846 | |
Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 23,665 | 20,624 | 19,506 |
Consumer | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 23,284 | 20,595 | |
Consumer | Non-performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 381 | 29 | |
HPFC Portfolio Segment | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 28,016 | 33,656 | $ 39,997 |
HPFC Portfolio Segment | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 26,758 | 32,261 | |
HPFC Portfolio Segment | Substandard (Grade 8) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 98 | 123 | |
HPFC Portfolio Segment | Non-performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $ 1,160 | $ 1,272 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Loan Aging Analysis by Portfolio Segment) (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
Jun. 30, 2018 |
---|---|---|---|
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 18,335 | $ 17,812 | |
Current | 3,081,989 | 3,008,410 | |
Total Loans Outstanding | 3,100,324 | 3,026,222 | $ 2,867,529 |
Loans 90 Days Past Due and Accruing | 14 | 14 | |
Non-Accrual Loans | 11,445 | 10,530 | |
Residential Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 7,227 | 9,866 | |
Current | 1,028,565 | 983,000 | |
Total Loans Outstanding | 1,035,792 | 992,866 | 907,910 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 5,566 | 5,492 | |
Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4,743 | 3,271 | |
Current | 1,255,896 | 1,266,262 | |
Total Loans Outstanding | 1,260,639 | 1,269,533 | 1,190,052 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 1,590 | 1,380 | |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,168 | 968 | |
Current | 426,508 | 380,812 | |
Total Loans Outstanding | 428,676 | 381,780 | 386,393 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 785 | 1,279 | |
Home Equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,207 | 2,990 | |
Current | 320,329 | 324,773 | |
Total Loans Outstanding | 323,536 | 327,763 | 323,671 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 2,672 | 1,846 | |
Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 438 | 111 | |
Current | 23,227 | 20,513 | |
Total Loans Outstanding | 23,665 | 20,624 | 19,506 |
Loans 90 Days Past Due and Accruing | 14 | 14 | |
Non-Accrual Loans | 367 | 15 | |
HPFC Portfolio Segment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 552 | 606 | |
Current | 27,464 | 33,050 | |
Total Loans Outstanding | 28,016 | 33,656 | $ 39,997 |
Loans 90 Days Past Due and Accruing | 0 | 0 | |
Non-Accrual Loans | 465 | 518 | |
30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 5,938 | 6,218 | |
30-59 Days Past Due | Residential Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,530 | 3,300 | |
30-59 Days Past Due | Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,194 | 1,794 | |
30-59 Days Past Due | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,380 | 150 | |
30-59 Days Past Due | Home Equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 777 | 907 | |
30-59 Days Past Due | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 57 | 67 | |
30-59 Days Past Due | HPFC Portfolio Segment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,880 | 3,239 | |
60-89 Days Past Due | Residential Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,396 | 2,046 | |
60-89 Days Past Due | Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,126 | 369 | |
60-89 Days Past Due | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 20 | 19 | |
60-89 Days Past Due | Home Equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 153 | 607 | |
60-89 Days Past Due | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 14 | 15 | |
60-89 Days Past Due | HPFC Portfolio Segment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 171 | 183 | |
Greater than 90 Days | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 8,517 | 8,355 | |
Greater than 90 Days | Residential Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4,301 | 4,520 | |
Greater than 90 Days | Commercial Real Estate | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 423 | 1,108 | |
Greater than 90 Days | Commercial | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 768 | 799 | |
Greater than 90 Days | Home Equity | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,277 | 1,476 | |
Greater than 90 Days | Consumer | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 367 | 29 | |
Greater than 90 Days | HPFC Portfolio Segment | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 381 | $ 423 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Troubled Debt Restructuring Loans) (Details) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2019
USD ($)
loan
|
Jun. 30, 2018
loan
|
Dec. 31, 2018
USD ($)
loan
|
|
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 27 | 31 | |
Recorded Investment | $ 4,117 | $ 4,406 | |
Specific Reserve | $ 533 | $ 628 | |
Number of Contracts | loan | 0 | 1 | |
Residential Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 22 | 25 | |
Recorded Investment | $ 3,342 | $ 3,614 | |
Specific Reserve | $ 381 | $ 443 | |
Commercial Real Estate | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 2 | 2 | |
Recorded Investment | $ 343 | $ 347 | |
Specific Reserve | $ 27 | $ 23 | |
Commercial | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 2 | 2 | |
Recorded Investment | $ 133 | $ 141 | |
Specific Reserve | $ 0 | $ 0 | |
Consumer | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | loan | 1 | 2 | |
Recorded Investment | $ 299 | $ 304 | |
Specific Reserve | $ 125 | $ 162 |
LOANS AND ALLOWANCE FOR LOAN LOSSES, Troubled Debt Restructuring by Portfolio Segment (Details) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2019
USD ($)
loan
|
Jun. 30, 2018
USD ($)
loan
|
|
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | loan | 0 | 1 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 0 | $ 163 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 0 | 186 |
Allowance Related to Troubled Debt Restructurings assigned during period | $ 0 | $ 39 |
Residential Real Estate [Member] | Interest Rate and Maturity Concession [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | loan | 0 | 1 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 0 | $ 163 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 0 | 186 |
Allowance Related to Troubled Debt Restructurings assigned during period | $ 0 | $ 39 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Summary of Impaired Loan Balances and Associated Allowance by Portfolio Segment) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment - with an allowance recorded | $ 4,706 | $ 4,322 | $ 4,706 | $ 4,322 | $ 4,476 |
Unpaid Principal Balance - with an allowance recorded | 4,706 | 4,322 | 4,706 | 4,322 | 4,476 |
Related Allowance | 1,183 | 834 | 1,183 | 834 | 824 |
Average Recorded Investment - with an allowance recorded | 4,559 | 5,802 | 4,532 | 6,961 | 5,921 |
Interest Income Recognized - with an allowance recorded | 31 | 49 | 62 | 80 | 138 |
Recorded Investment - without allowance recorded | 1,737 | 8,269 | 1,737 | 8,269 | 2,450 |
Unpaid Principal Balance - without allowance recorded | 2,222 | 10,126 | 2,222 | 10,126 | 3,001 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | 0 | 0 | |
Average Recorded Investment - without allowance recorded | 1,794 | 6,106 | 2,013 | 5,507 | 5,368 |
Interest Income Recognized - without allowance recorded | 13 | 4 | 28 | 18 | 55 |
Impaired Financing Receivable, Recorded Investment | 6,443 | 12,591 | 6,443 | 12,591 | 6,926 |
Impaired financing receivable, unpaid principal balance | 6,928 | 14,448 | 6,928 | 14,448 | 7,477 |
Impaired Financing Receivable, Average Recorded Investment | 6,353 | 11,908 | 6,545 | 12,468 | 11,289 |
Impaired Financing Receivable, Interest Income, Accrual Method | 44 | 53 | 90 | 98 | 193 |
Residential Real Estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment - with an allowance recorded | 3,286 | 3,506 | 3,286 | 3,506 | 3,471 |
Unpaid Principal Balance - with an allowance recorded | 3,286 | 3,506 | 3,286 | 3,506 | 3,471 |
Related Allowance | 524 | 585 | 524 | 585 | 586 |
Average Recorded Investment - with an allowance recorded | 3,370 | 3,525 | 3,404 | 3,636 | 3,591 |
Interest Income Recognized - with an allowance recorded | 26 | 39 | 56 | 69 | 127 |
Recorded Investment - without allowance recorded | 1,186 | 1,894 | 1,186 | 1,894 | 1,291 |
Unpaid Principal Balance - without allowance recorded | 1,310 | 2,200 | 1,310 | 2,200 | 1,415 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | 0 | 0 | |
Average Recorded Investment - without allowance recorded | 1,234 | 1,704 | 1,253 | 1,574 | 1,524 |
Interest Income Recognized - without allowance recorded | 7 | 7 | 17 | 14 | 34 |
Commercial Real Estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment - with an allowance recorded | 131 | 351 | 131 | 351 | 131 |
Unpaid Principal Balance - with an allowance recorded | 131 | 351 | 131 | 351 | 131 |
Related Allowance | 27 | 23 | 27 | 23 | 23 |
Average Recorded Investment - with an allowance recorded | 131 | 1,971 | 131 | 3,121 | 1,969 |
Interest Income Recognized - with an allowance recorded | 5 | 10 | 6 | 11 | 11 |
Recorded Investment - without allowance recorded | 278 | 4,742 | 278 | 4,742 | 799 |
Unpaid Principal Balance - without allowance recorded | 437 | 5,080 | 437 | 5,080 | 975 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | 0 | 0 | |
Average Recorded Investment - without allowance recorded | 278 | 2,556 | 452 | 1,963 | 2,269 |
Interest Income Recognized - without allowance recorded | 4 | (3) | 7 | 13 | |
Commercial | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment - with an allowance recorded | 461 | 0 | 461 | 0 | 556 |
Unpaid Principal Balance - with an allowance recorded | 461 | 0 | 461 | 0 | 556 |
Related Allowance | 322 | 0 | 322 | 0 | 53 |
Average Recorded Investment - with an allowance recorded | 230 | 339 | 111 | ||
Recorded Investment - without allowance recorded | 214 | 1,611 | 214 | 1,611 | 230 |
Unpaid Principal Balance - without allowance recorded | 278 | 2,785 | 278 | 2,785 | 293 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | 0 | 0 | |
Average Recorded Investment - without allowance recorded | 219 | 1,663 | 222 | 1,705 | 1,379 |
Interest Income Recognized - without allowance recorded | 2 | 2 | 4 | 4 | 8 |
Home Equity | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment - with an allowance recorded | 828 | 465 | 828 | 465 | 318 |
Unpaid Principal Balance - with an allowance recorded | 828 | 465 | 828 | 465 | 318 |
Related Allowance | 310 | 226 | 310 | 226 | 162 |
Average Recorded Investment - with an allowance recorded | 828 | 306 | 658 | 204 | 250 |
Recorded Investment - without allowance recorded | 59 | 22 | 59 | 22 | 124 |
Unpaid Principal Balance - without allowance recorded | 197 | 61 | 197 | 61 | 305 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | 0 | 0 | |
Average Recorded Investment - without allowance recorded | 63 | 183 | 84 | 265 | 195 |
Interest Income Recognized - without allowance recorded | (2) | ||||
Consumer | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment - with an allowance recorded | 0 | 0 | 0 | 0 | 0 |
Unpaid Principal Balance - with an allowance recorded | 0 | 0 | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 | 0 | 0 |
Average Recorded Investment - with an allowance recorded | 0 | ||||
Recorded Investment - without allowance recorded | 0 | 0 | 0 | 0 | 6 |
Unpaid Principal Balance - without allowance recorded | 0 | 0 | 0 | 0 | 13 |
Impaired Financing Receivable With No Related Allowance Related Allowance | 0 | 0 | 0 | 0 | |
Average Recorded Investment - without allowance recorded | 2 | 1 | |||
HPFC Portfolio Segment | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment - with an allowance recorded | 0 | 0 | 0 | 0 | 0 |
Unpaid Principal Balance - with an allowance recorded | 0 | 0 | 0 | 0 | 0 |
Related Allowance | 0 | 0 | 0 | 0 | 0 |
Average Recorded Investment - with an allowance recorded | 0 | ||||
Recorded Investment - without allowance recorded | 0 | 0 | 0 | 0 | 0 |
Unpaid Principal Balance - without allowance recorded | 0 | 0 | 0 | 0 | 0 |
Impaired Financing Receivable With No Related Allowance Related Allowance | $ 0 | $ 0 | $ 0 | $ 0 | |
Average Recorded Investment - without allowance recorded | $ 0 |
LEASES - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2018 |
|
Leases [Abstract] | ||
Rent expense | $ 328 | $ 672 |
LEASES - Components of Lease Expense (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2019
USD ($)
|
|||||||||
Leases [Abstract] | ||||||||||
Operating lease assets | $ 13,120 | $ 13,120 | ||||||||
Finance lease assets | 1,557 | 1,557 | ||||||||
Total leased assets | 14,677 | 14,677 | ||||||||
Operating lease liabilities | 13,150 | [1] | 13,150 | [1] | ||||||
Finance lease liabilities | 1,719 | [1] | 1,719 | [1] | ||||||
Lease liabilities | 14,869 | 14,869 | ||||||||
Operating lease cost | 345 | [2] | 719 | [2] | ||||||
Amortization of right-of-use assets | 27 | 55 | ||||||||
Interest on lease liabilities | 17 | [3] | 34 | [3] | ||||||
Total finance lease cost | 44 | 89 | ||||||||
Total Lease Cost | $ 389 | $ 808 | ||||||||
|
LEASES - Supplemental Cash Flow and Balance Sheet Information (Details) - USD ($) |
6 Months Ended | |||||
---|---|---|---|---|---|---|
Jan. 01, 2019 |
Jun. 30, 2019 |
Jun. 30, 2018 |
||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||
Operating cash flows from operating leases | $ 673,000 | |||||
Operating cash flows from finance leases | 34,000 | |||||
Financing cash flows from finance leases | 53,000 | $ 0 | ||||
Right-of-use assets obtained in exchange for lease obligations: | ||||||
Operating leases | [1] | 13,621,000 | ||||
Finance leases | [1] | $ 1,612,000 | ||||
Weighted average remaining lease term (years): | ||||||
Operating leases | 16 years 2 months | |||||
Finance leases | 22 years 7 months 12 days | |||||
Weighted average discount rate: | ||||||
Operating leases | 3.41% | |||||
Finance leases | 3.94% | |||||
ASU 2016-02 | ||||||
Right-of-use assets obtained in exchange for lease obligations: | ||||||
Operating leases | $ 10,500,000 | |||||
Finance leases | $ 1,600,000 | |||||
|
LEASES - Maturities of Operating and Finance Lease Liabilities (Details) $ in Thousands |
Jun. 30, 2019
USD ($)
|
|||||
---|---|---|---|---|---|---|
Operating Leases | ||||||
2019 | $ 715 | |||||
2020 | 1,349 | |||||
2021 | 1,272 | |||||
2022 | 1,261 | |||||
2023 | 1,222 | |||||
Thereafter | 11,437 | |||||
Total minimum lease payments | 17,256 | |||||
Less: amount representing interest | 4,106 | [1] | ||||
Present value of net minimum lease payments | 13,150 | [2] | ||||
Finance Leases | ||||||
2019 | 88 | |||||
2020 | 174 | |||||
2021 | 174 | |||||
2022 | 174 | |||||
2023 | 174 | |||||
Thereafter | 2,095 | |||||
Total minimum lease payments | 2,879 | |||||
Less: amount representing interest | 1,160 | [1] | ||||
Present value of net minimum lease payments | $ 1,719 | [2] | ||||
|
LEASES - Future Minimum Lease Payments ASC 840 (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
|||||
---|---|---|---|---|---|---|
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||||
2019 | $ 1,420 | |||||
2020 | 941 | |||||
2021 | 726 | |||||
2022 | 539 | |||||
2023 | 434 | |||||
Thereafter | 1,268 | |||||
Total minimum lease payments | 5,328 | |||||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||||
2019 | 179 | |||||
2020 | 179 | |||||
2021 | 182 | |||||
2022 | 184 | |||||
2023 | 184 | |||||
Thereafter | 1,592 | |||||
Total minimum lease payments | 2,500 | |||||
Less: amount representing interest | 920 | [1] | ||||
Present value of net minimum lease payments | $ 1,580 | [2] | ||||
|
BORROWINGS (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
||
---|---|---|---|---|
Debt Instrument [Line Items] | ||||
Repurchase Agreements | $ 241,647 | $ 245,868 | ||
Total short-term borrowings | 241,647 | 270,868 | ||
Long-term Federal Home Loan Bank Advances | 10,000 | 10,000 | ||
Total long-term borrowings | 10,000 | 11,580 | ||
Short-term Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Repurchase Agreements | 241,647 | 245,868 | ||
FHLBB advances less than 90 days | 0 | 25,000 | ||
Long-term Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Capital lease obligation | [1] | $ 0 | $ 1,580 | |
|
REPURCHASE AGREEMENTS (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
|||||
---|---|---|---|---|---|---|---|
Assets Sold under Agreements to Repurchase [Line Items] | |||||||
Repurchase Agreements | $ 241,647 | $ 245,868 | |||||
June 30, 2019 | |||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||
Repurchase Agreements | [1],[2] | 241,647 | 245,868 | ||||
Obligations of states and political subdivisions | June 30, 2019 | |||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||
Repurchase Agreements | [1],[2] | 1,700 | 1,455 | ||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | June 30, 2019 | |||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||
Repurchase Agreements | [1],[2] | 116,584 | 125,590 | ||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | June 30, 2019 | |||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||
Repurchase Agreements | [1],[2] | 123,363 | 118,823 | ||||
Collateral Pledged [Member] | June 30, 2019 | |||||||
Assets Sold under Agreements to Repurchase [Line Items] | |||||||
Certificates of Deposit, at Carrying Value | $ 1,000 | $ 923 | |||||
|
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Narrative) (Details) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019
USD ($)
derivative
|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2019
USD ($)
derivative
swap
|
Jun. 30, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
derivative
|
|
Other Commitments [Line Items] | |||||
Loss Contingency Accrual | $ 0 | $ 0 | $ 0 | ||
Unrealized Gain (Loss) on Derivatives | (223,000) | $ (4,000) | $ (404,000) | $ 8,000 | |
Derivative, Number of Interest Rate Swap Agreements | swap | 2 | ||||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | $ 1,300,000 | ||||
Customer Loan Swaps | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | 818,514,000 | 818,514,000 | 833,030,000 | ||
Cash held as collateral | 17,800,000 | 17,800,000 | |||
Interest Rate Swap On Loans [Member] | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | 100,000,000 | 100,000,000 | 0 | ||
Cash held as collateral | 0 | 0 | |||
Loss on Cash Flow Hedge Ineffectiveness | 0 | 0 | |||
Derivative Instrument Payment Of Interest Rate Swaps Designated As Cash Flow Hedges | 34,000 | ||||
Interest rate swaps | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | 43,000,000 | 43,000,000 | 43,000,000 | ||
Cash held as collateral | 8,700,000 | 8,700,000 | |||
Loss on Cash Flow Hedge Ineffectiveness | 0 | 0 | 0 | 0 | |
Derivative Instrument Payment Of Interest Rate Swaps Designated As Cash Flow Hedges | 318,000 | 489,000 | |||
Forward-Starting Interest Rate Swap | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | 0 | 0 | 25,000,000 | ||
Derivative Instrument Payment Of Interest Rate Swaps Designated As Cash Flow Hedges | 32,000 | 2,000 | |||
Forward Contracts [Member] | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | 13,088,000 | 13,088,000 | 4,315,000 | ||
Unrealized Gain (Loss) on Derivatives | 159,000 | $ 69,000 | 242,000 | $ 50,000 | |
Cancellable Commitment | |||||
Other Commitments [Line Items] | |||||
Contractual Amounts Of Financial Instrument | 285,000,000 | 285,000,000 | 270,800,000 | ||
Federal home loan bank 30-day | Interest rate swaps | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | $ 366,341,000 | $ 366,341,000 | $ 118,891,000 | ||
Derivative, Number of Instruments Held | derivative | 72 | 72 | 25 | ||
Commercial and Industrial Sector [Member] | Interest rate swaps | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | $ 409,257,000 | $ 409,257,000 | $ 416,515,000 | ||
Derivative, Number of Instruments Held | derivative | 84 | 84 | 82 | ||
Contract Two [Member] | Interest rate swaps | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | ||
Contract Two [Member] | Forward-Starting Interest Rate Swap | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | 0 | 0 | 25,000,000 | ||
Contract, One | Interest rate swaps | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 |
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Summary of Contractual and Notional Amounts of Financial Instruments) (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Customer Loan Swaps | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | $ 818,514 | $ 833,030 |
Interest Rate Swap On Loans [Member] | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | 100,000 | 0 |
Forward-Starting Interest Rate Swap | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | 0 | 25,000 |
Interest rate swaps | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | 43,000 | 43,000 |
Interest rate lock commitments | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | 34,814 | 12,077 |
Forward Contracts [Member] | ||
Financial Instruments [Line Items] | ||
Notional amount of derivative | 13,088 | 4,315 |
Standby Letters of Credit [Member] | ||
Financial Instruments [Line Items] | ||
Contractual Amounts Of Financial Instrument | 5,887 | 3,063 |
Commitments to Extend Credit [Member] | ||
Financial Instruments [Line Items] | ||
Contractual Amounts Of Financial Instrument | $ 737,371 | $ 654,575 |
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Schedule of Swapped Variable Cost for Fixed Cost and Terms of Interest Rate Swap Agreements) (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Interest rate swaps | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 43,000,000 | $ 43,000,000 | $ 43,000,000 | ||
Fair Value | (8,306,000) | (8,306,000) | (5,682,000) | ||
Loss on Cash Flow Hedge Ineffectiveness | 0 | $ 0 | 0 | $ 0 | |
Interest rate swaps | Contract, One | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 10,000,000 | $ 10,000,000 | 10,000,000 | ||
Trade Date | Mar. 18, 2009 | ||||
Maturity Date | Jun. 30, 2021 | ||||
Variable Index Received | 3 months | ||||
Fixed Rate Paid | 5.09% | 5.09% | |||
Fair Value | $ (383,000) | $ (383,000) | (272,000) | ||
Interest rate swaps | Contract, Two | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 10,000,000 | $ 10,000,000 | 10,000,000 | ||
Trade Date | Jul. 08, 2009 | ||||
Maturity Date | Jun. 30, 2029 | ||||
Variable Index Received | 3 months | ||||
Fixed Rate Paid | 5.84% | 5.84% | |||
Fair Value | $ (2,353,000) | $ (2,353,000) | (1,655,000) | ||
Interest rate swaps | Contract, Three | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 10,000,000 | $ 10,000,000 | 10,000,000 | ||
Trade Date | May 06, 2010 | ||||
Maturity Date | Jun. 30, 2030 | ||||
Variable Index Received | 3 months | ||||
Fixed Rate Paid | 5.71% | 5.71% | |||
Fair Value | $ (2,396,000) | $ (2,396,000) | (1,636,000) | ||
Interest rate swaps | Contract, Four | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 5,000,000 | $ 5,000,000 | 5,000,000 | ||
Trade Date | Mar. 14, 2011 | ||||
Maturity Date | Mar. 30, 2031 | ||||
Variable Index Received | 3 months | ||||
Fixed Rate Paid | 4.35% | 4.35% | |||
Fair Value | $ (1,279,000) | $ (1,279,000) | (877,000) | ||
Interest rate swaps | Contract, Five | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 8,000,000 | $ 8,000,000 | 8,000,000 | ||
Trade Date | May 04, 2011 | ||||
Maturity Date | Jul. 07, 2031 | ||||
Variable Index Received | 3 months | ||||
Fixed Rate Paid | 4.14% | 4.14% | |||
Fair Value | $ (1,895,000) | $ (1,895,000) | (1,242,000) | ||
Forward-Starting Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Notional Amount | 0 | $ 0 | 25,000,000 | ||
Forward-Starting Interest Rate Swap | Contract, One | |||||
Derivative [Line Items] | |||||
Variable Index Received | 1 month | ||||
Forward-Starting Interest Rate Swap | Contract, Two | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 0 | $ 0 | 25,000,000 | ||
Trade Date | Feb. 25, 2015 | ||||
Maturity Date | Feb. 25, 2019 | ||||
Variable Index Received | 1 month | ||||
Fixed Rate Paid | 1.74% | 1.74% | |||
Fair Value | $ 0 | $ 0 | 30,000 | ||
Interest Rate Swap On Loans [Member] | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 100,000,000 | $ 100,000,000 | $ 0 | ||
Trade Date | Jun. 12, 2019 | ||||
Maturity Date | Jun. 10, 2024 | ||||
Fixed Rate Paid | 1.693% | 1.693% | |||
Fair Value | $ 262,000 | $ 262,000 | |||
Loss on Cash Flow Hedge Ineffectiveness | $ 0 | $ 0 |
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Schedule of customer loan swaps) (Details) $ in Thousands |
Jun. 30, 2019
USD ($)
derivative
|
Dec. 31, 2018
USD ($)
derivative
|
---|---|---|
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional amount of derivative | $ 43,000 | $ 43,000 |
Fair Value | $ (8,306) | $ (5,682) |
Interest rate swaps | Federal home loan bank 30-day | ||
Derivative [Line Items] | ||
Derivative, Number of Instruments Held | derivative | 72 | 25 |
Notional amount of derivative | $ 366,341 | $ 118,891 |
Fair Value | 17,143 | 3,467 |
Forward-Starting Interest Rate Swap | ||
Derivative [Line Items] | ||
Notional amount of derivative | $ 0 | $ 25,000 |
Commercial and Industrial Sector [Member] | Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative, Number of Instruments Held | derivative | 84 | 82 |
Notional amount of derivative | $ 409,257 | $ 416,515 |
Fair Value | $ (16,602) | $ 4,374 |
Loans [Member] | Interest rate swaps | ||
Derivative [Line Items] | ||
Derivative, Number of Instruments Held | derivative | 168 | 164 |
Notional amount of derivative | $ 818,514 | $ 833,030 |
Fair Value | $ 0 | $ 0 |
Other Liabilities [Member] | Interest rate swaps | Federal home loan bank 30-day | ||
Derivative [Line Items] | ||
Derivative, Number of Instruments Held | derivative | 12 | 57 |
Notional amount of derivative | $ 42,916 | $ 297,624 |
Fair Value | $ (541) | $ (7,841) |
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Schedule of interest rate lock commitments) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Other Commitments [Line Items] | |||||
Unrealized Gain (Loss) on Derivatives | $ (223) | $ (4) | $ (404) | $ 8 | |
Interest Rate Lock Commitments | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | 34,814 | 34,814 | $ 12,077 | ||
Derivative Asset, Fair Value, Gross Asset | 471 | 471 | 67 | ||
Other Assets [Member] | Interest Rate Lock Commitments | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | 31,100 | 31,100 | 8,239 | ||
Derivative Asset, Fair Value, Gross Asset | 516 | 516 | 95 | ||
Other Liabilities [Member] | Interest Rate Lock Commitments | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | 3,714 | 3,714 | 3,838 | ||
Derivative Asset, Fair Value, Gross Asset | $ (45) | $ (45) | $ (28) |
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Schedule of Derivatives Effects on OCI) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Commitments and Contingencies Disclosure [Abstract] | ||||
Net reclassification adjustment for effective portion of cash flow hedges included in interest expense, gross | $ 201 | $ 203 | $ 320 | $ 487 |
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Schedule of forward loan sale commitments) (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
Dec. 31, 2018 |
|
Other Commitments [Line Items] | |||||
Unrealized Gain (Loss) on Derivatives | $ (223,000) | $ (4,000) | $ (404,000) | $ 8,000 | |
Forward Contracts [Member] | |||||
Other Commitments [Line Items] | |||||
Unrealized Gain (Loss) on Derivatives | 159,000 | $ 69,000 | 242,000 | $ 50,000 | |
Notional amount of derivative | 13,088,000 | 13,088,000 | $ 4,315,000 | ||
Derivative Asset, Fair Value, Gross Asset | 272,000 | 272,000 | 32,000 | ||
Derivative Liability, Fair Value, Gross Liability | (15,000) | (15,000) | (17,000) | ||
Derivative, Fair Value, Net | 257,000 | 257,000 | 15,000 | ||
Forward Contracts [Member] | Other Assets [Member] | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | 11,559,000 | 11,559,000 | 2,593,000 | ||
Forward Contracts [Member] | Other Liabilities [Member] | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | 1,529,000 | 1,529,000 | 1,722,000 | ||
Interest Rate Lock Commitments [Member] | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | 34,814,000 | 34,814,000 | 12,077,000 | ||
Derivative Asset, Fair Value, Gross Asset | 471,000 | 471,000 | 67,000 | ||
Interest Rate Lock Commitments [Member] | Other Assets [Member] | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | 31,100,000 | 31,100,000 | 8,239,000 | ||
Derivative Asset, Fair Value, Gross Asset | 516,000 | 516,000 | 95,000 | ||
Interest Rate Lock Commitments [Member] | Other Liabilities [Member] | |||||
Other Commitments [Line Items] | |||||
Notional amount of derivative | 3,714,000 | 3,714,000 | 3,838,000 | ||
Derivative Asset, Fair Value, Gross Asset | $ (45,000) | $ (45,000) | $ (28,000) |
COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Schedule of Derivatives Effect on OCI and Current Earnings) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Commitments and Contingencies Disclosure [Abstract] | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ (1,203) | $ 414 | $ (2,128) | $ 1,570 |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ 201 | $ 203 | $ 320 | $ 487 |
COMMITMENTS, CONTINGENCIES AND DERIVATIVES COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Schedule of Interest Rate Swap on Loans) (Details) - Interest Rate Swap On Loans [Member] - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2019 |
Dec. 31, 2018 |
|
Derivative [Line Items] | ||
Trade Date | Jun. 12, 2019 | |
Maturity Date | Jun. 10, 2024 | |
Fixed Rate Paid | 1.693% | |
Notional Amount | $ 100,000 | $ 0 |
Derivative, Fair Value, Net | $ 262 |
BALANCE SHEET OFFSETTING (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
|||
---|---|---|---|---|---|
Offsetting Assets [Line Items] | |||||
Derivative Asset, Not Offset, Policy Election Deduction | $ 0 | $ 0 | |||
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Gross | 17,405 | 7,871 | |||
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Liability | 0 | 0 | |||
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed | 17,405 | 7,871 | |||
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Not Offset, Policy Election Deduction | 0 | 0 | |||
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Collateral, Obligation to Return Cash | [1] | 0 | (4,404) | ||
Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Amount Offset Against Collateral | [1] | 17,405 | 3,467 | ||
Derivative Liability, Not Offset, Policy Election Deduction | 0 | 0 | |||
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Gross | 25,449 | 13,523 | |||
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Asset | 0 | 0 | |||
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned | 8,847 | 13,523 | |||
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Not Offset, Policy Election Deduction | 0 | 0 | |||
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Collateral, Right to Reclaim Cash | [1] | 24,908 | 5,682 | ||
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Amount Offset Against Collateral | [1] | 541 | 7,841 | ||
Securities Sold under Agreements to Repurchase, Gross | 241,647 | 245,868 | |||
Securities Sold under Agreements to Repurchase, Asset | 0 | 0 | |||
Securities Sold under Agreements to Repurchase | 241,647 | 245,868 | |||
Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Collateral, Right to Reclaim Securities | 241,647 | 245,868 | |||
Securities Sold under Agreements to Repurchase, Collateral, Right to Reclaim Cash | [1] | 0 | 0 | ||
Securities Sold under Agreements to Repurchase, Amount Offset Against Collateral | [1] | 0 | 0 | ||
Customer Loan Swap Dealer Bank [Member] | |||||
Offsetting Assets [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 4,374 | ||||
Derivative Asset, Fair Value, Gross Liability | 0 | ||||
Derivative Asset | 4,374 | ||||
Derivative, Collateral, Obligation to Return Cash | [1] | (4,374) | |||
Derivative Asset, Fair Value, Amount Offset Against Collateral | [1] | 0 | |||
Derivative Liability, Fair Value, Gross Liability | 16,602 | ||||
Derivative Liability, Fair Value, Gross Asset | 0 | ||||
Derivative Liability | 16,602 | ||||
Derivative Liability, Not Offset, Policy Election Deduction | 0 | ||||
Derivative, Collateral, Right to Reclaim Cash | [1] | 16,602 | |||
Derivative Liability, Fair Value, Amount Offset Against Collateral | [1] | 0 | |||
Customer Loan Swaps Commercial Customer [Member] | |||||
Offsetting Assets [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 17,143 | 3,467 | |||
Derivative Asset, Fair Value, Gross Liability | 0 | 0 | |||
Derivative Asset | 17,143 | 3,467 | |||
Derivative, Collateral, Obligation to Return Cash | [1] | 0 | 0 | ||
Derivative Asset, Fair Value, Amount Offset Against Collateral | [1] | 17,143 | 3,467 | ||
Derivative Liability, Fair Value, Gross Liability | 541 | 7,841 | |||
Derivative Liability, Fair Value, Gross Asset | 0 | 0 | |||
Derivative Liability | 541 | 7,841 | |||
Derivative, Collateral, Right to Reclaim Cash | [1] | 0 | 0 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | [1] | 541 | 7,841 | ||
Interest Rate Swap On Loans [Member] | |||||
Offsetting Assets [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 262 | ||||
Derivative Asset, Fair Value, Gross Liability | 0 | ||||
Derivative Asset | 262 | ||||
Derivative, Collateral, Obligation to Return Cash | [1] | 0 | |||
Derivative Asset, Fair Value, Amount Offset Against Collateral | [1] | 262 | |||
FHLBB Advance Interest Rate Swap [Member] | |||||
Offsetting Assets [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 30 | ||||
Derivative Asset, Fair Value, Gross Liability | 0 | ||||
Derivative Asset | 30 | ||||
Derivative, Collateral, Obligation to Return Cash | [1] | (30) | |||
Derivative Asset, Fair Value, Amount Offset Against Collateral | [1] | 0 | |||
Junior Subordinated Debt Interest Rate Swap [Member] | |||||
Offsetting Assets [Line Items] | |||||
Derivative Liability, Fair Value, Gross Liability | 8,306 | 5,682 | |||
Derivative Liability, Fair Value, Gross Asset | 0 | 0 | |||
Derivative Liability | 8,306 | 5,682 | |||
Derivative, Collateral, Right to Reclaim Cash | [1] | 8,306 | 5,682 | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral | [1] | $ 0 | $ 0 | ||
|
REGULATORY CAPITAL REQUIREMENTS (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
Oct. 08, 2015 |
---|---|---|---|
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Subordinated debentures | $ 58,991 | $ 59,067 | $ 15,000 |
Capital | $ 448,488 | $ 434,331 | |
Capital to Risk Weighted Assets | 14.12% | 14.36% | |
Capital Required for Capital Adequacy to Risk Weighted Assets | 10.50% | 9.875% | |
Tier One Risk Based Capital | $ 407,312 | $ 394,597 | |
Tier One Risk Based Capital to Risk Weighted Assets | 12.82% | 13.04% | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 8.50% | 7.875% | |
Common equity tier I capital | $ 364,312 | $ 351,597 | |
Common Equity Tier I Risk Based Capital Ratio | 11.47% | 11.62% | |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 7.00% | 6.375% | |
Tier One Leverage Capital | $ 407,312 | $ 394,597 | |
Excess Tier One Leverage Capital to Average Assets | 9.51% | 9.53% | |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% | |
Subsidiaries | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Capital | $ 415,658 | $ 398,773 | |
Capital to Risk Weighted Assets | 13.10% | 13.18% | |
Capital Required for Capital Adequacy to Risk Weighted Assets | 10.50% | 9.875% | |
Tier One Risk Based Capital | $ 389,482 | $ 374,039 | |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% | |
Tier One Risk Based Capital to Risk Weighted Assets | 12.27% | 12.36% | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 8.50% | 7.875% | |
Common equity tier I capital | $ 389,482 | $ 374,039 | |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 8.00% | |
Common Equity Tier I Risk Based Capital Ratio | 12.27% | 12.36% | |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 7.00% | 6.375% | |
Tier One Leverage Capital | $ 389,482 | $ 374,039 | |
Common Equity Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 6.50% | 6.50% | |
Excess Tier One Leverage Capital to Average Assets | 9.12% | 9.06% | |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% | |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
REGULATORY CAPITAL REQUIREMENTS Regulatory Capital Requirements (Narrative) (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
Oct. 08, 2015 |
---|---|---|---|
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Capital Required for Capital Adequacy to Risk Weighted Assets | 10.50% | 9.875% | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 8.50% | 7.875% | |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 7.00% | 6.375% | |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% | |
Value Of Trust Preferred Securities Included In Tier One Capital | $ 43,000 | $ 43,000 | |
Subordinated Debt | $ 58,991 | 59,067 | $ 15,000 |
Minimum | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | ||
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | ||
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | ||
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | ||
Capital Conservation Buffer | 2.50% | ||
Tier II Capital [Domain] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Subordinated Debt | $ 15,000 | $ 15,000 |
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
|
Supplemental Employee Retirement Plan [Member] | ||||
Net periodic pension cost | ||||
Service cost | $ 99 | $ 111 | $ 198 | $ 223 |
Interest cost | 130 | 122 | 261 | 244 |
Recognized net actuarial loss | 61 | 140 | 122 | 280 |
Net period benefit cost | 290 | 373 | 581 | 747 |
Other Postretirement Benefit Plan | ||||
Net periodic pension cost | ||||
Service cost | 12 | 11 | 24 | 23 |
Interest cost | 37 | 33 | 74 | 66 |
Recognized net actuarial loss | 6 | 14 | 12 | 27 |
Amortization of prior service credit | (6) | (6) | (12) | (12) |
Net period benefit cost | $ 49 | $ 52 | $ 98 | $ 104 |
EARNINGS PER SHARE (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2018 |
Jun. 30, 2019 |
Jun. 30, 2018 |
||||||
Earnings Per Share [Abstract] | |||||||||
Net income | $ 13,204 | $ 12,217 | $ 27,477 | $ 25,037 | |||||
Dividends and undistributed earnings allocated to participating securities | [1] | (26) | (30) | (54) | (70) | ||||
Net income available to common shareholders | $ 13,178 | $ 12,187 | $ 27,423 | $ 24,967 | |||||
Weighted-average common shares outstanding for basic EPS | 15,519,827 | 15,572,848 | 15,555,770 | 15,557,500 | |||||
Dilutive effect of stock-based awards (shares) | [2] | 39,933 | 56,931 | 39,884 | 57,538 | ||||
Weighted-average common and potential common shares for diluted EPS (shares) | 15,559,760 | 15,629,779 | 15,595,654 | 15,615,038 | |||||
Basic EPS (in dollars per share) | $ 0.85 | $ 0.78 | $ 1.76 | $ 1.60 | |||||
Diluted EPS (in dollars per share) | $ 0.85 | $ 0.78 | $ 1.76 | $ 1.60 | |||||
Antidilutive Stock options (shares) | 0 | 0 | 0 | 0 | |||||
|
FAIR VALUE MEASUREMENT AND DISCLOSURE (Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Financial assets: | ||
Loans held for sale | $ 13,088 | $ 4,314 |
Available-for-sale Securities | 920,083 | 910,692 |
Obligations of states and political subdivisions | ||
Financial assets: | ||
Available-for-sale Securities | 89,129 | 93,752 |
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 456,377 | 453,672 |
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 352,071 | 342,894 |
Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Loans held for sale | 13,113 | 4,403 |
Customer loan swaps | 17,143 | |
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 5,682 | |
Customer loan swaps | 15 | |
Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ||
Financial assets: | ||
Available-for-sale Securities | 89,129 | 93,752 |
Fair Value, Measurements, Recurring | Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 456,377 | 453,672 |
Fair Value, Measurements, Recurring | Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 352,071 | 342,894 |
Fair Value, Measurements, Recurring | Corporate Bond Securities [Member] | ||
Financial assets: | ||
Available-for-sale Securities | 22,506 | 20,374 |
Fair Value, Measurements, Recurring | Equity investments | ||
Financial assets: | ||
Available-for-sale Securities | 830 | 746 |
Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Loans held for sale | 0 | 0 |
Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | Corporate Bond Securities [Member] | ||
Financial assets: | ||
Available-for-sale Securities | 0 | 0 |
Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | Equity investments | ||
Financial assets: | ||
Available-for-sale Securities | 0 | 0 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Loans held for sale | 13,113 | 4,403 |
Customer loan swaps | 17,143 | |
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 5,682 | |
Customer loan swaps | 15 | |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ||
Financial assets: | ||
Available-for-sale Securities | 89,129 | 93,752 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 456,377 | 453,672 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
Financial assets: | ||
Available-for-sale Securities | 352,071 | 342,894 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Corporate Bond Securities [Member] | ||
Financial assets: | ||
Available-for-sale Securities | 22,506 | 20,374 |
Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Equity investments | ||
Financial assets: | ||
Available-for-sale Securities | 830 | 746 |
Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Loans held for sale | 0 | 0 |
Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | Corporate Bond Securities [Member] | ||
Financial assets: | ||
Available-for-sale Securities | 0 | 0 |
Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | Equity investments | ||
Financial assets: | ||
Available-for-sale Securities | 0 | 0 |
Interest Rate Swap On Loans [Member] | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 262 | |
Interest Rate Swap On Loans [Member] | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 262 | |
Interest Rate Lock Commitments [Member] | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Customer loan swaps | 516 | 95 |
Financial liabilities: | ||
Customer loan swaps | 45 | 28 |
Interest Rate Lock Commitments [Member] | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Customer loan swaps | 516 | 95 |
Financial liabilities: | ||
Customer loan swaps | 45 | 28 |
Interest Rate Lock Commitments [Member] | Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Customer loan swaps | 0 | 0 |
Forward Contracts [Member] | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Customer loan swaps | 272 | 32 |
Financial liabilities: | ||
Customer loan swaps | 17 | |
Forward Contracts [Member] | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Customer loan swaps | 272 | 32 |
Financial liabilities: | ||
Customer loan swaps | 17 | |
Interest rate swaps | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Customer loan swaps | 7,841 | |
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 8,306 | |
Customer loan swaps | 7,841 | |
Interest rate swaps | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Customer loan swaps | 7,841 | |
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 8,306 | |
Customer loan swaps | 7,841 | |
Forward-Starting Interest Rate Swap | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 30 | |
Forward-Starting Interest Rate Swap | Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | 0 | |
Forward-Starting Interest Rate Swap | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Junior subordinated debt interest rate swaps | $ 30 | |
Customer Loan Swaps | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Customer loan swaps | 17,143 | |
Customer Loan Swaps | Readily Available Market Prices (Level 1) | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Customer loan swaps | 0 | |
Customer Loan Swaps | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Customer loan swaps | 17,143 | |
Customer Loan Swaps | Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | ||
Financial liabilities: | ||
Customer loan swaps | $ 0 |
FAIR VALUE MEASUREMENT AND DISCLOSURE (Summary of Assets Measured at Fair Value on Non Recurring Basis) (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
---|---|---|
Collateral-dependent impaired loans | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Fair Value | $ 925 | $ 522 |
Collateral-dependent impaired loans | Company Determined Fair Value (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Fair Value | 925 | 522 |
Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Fair Value | 130 | |
Other real estate owned | Company Determined Fair Value (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Fair Value | $ 130 | $ 130 |
FAIR VALUE MEASUREMENT AND DISCLOSURE (Schedule of Valuation Methodology and Unobservable Inputs) (Details) $ in Thousands |
Jun. 30, 2019
USD ($)
|
Dec. 31, 2018
USD ($)
|
Jun. 30, 2018
USD ($)
|
---|---|---|---|
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans | $ 6,443 | $ 6,926 | $ 12,591 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Partially Charged Off [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans | 44 | 50 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Specifically Reserved [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans | 881 | 472 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other real estate owned | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other Real Estate | $ 130 | $ 130 | |
Measurement Input, Appraised Value [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Minimum | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Partially Charged Off [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans Partially Charged Off, Measurement Input | 0.00 | 0.00 | |
Measurement Input, Appraised Value [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Minimum | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Specifically Reserved [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans Specifically Reserved, Measurement Input | 0.00 | 0.00 | |
Measurement Input, Appraised Value [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Minimum | Fair Value, Measurements, Nonrecurring [Member] | Other real estate owned | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other Real Estate Owned, Measurement Input | 0.19 | 0.19 | |
Measurement Input, Appraised Value [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Maximum | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Partially Charged Off [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans Partially Charged Off, Measurement Input | 0.00 | 0.00 | |
Measurement Input, Appraised Value [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Maximum | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Specifically Reserved [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans Specifically Reserved, Measurement Input | 0.39 | 0.00 | |
Measurement Input, Appraised Value [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Maximum | Fair Value, Measurements, Nonrecurring [Member] | Other real estate owned | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other Real Estate Owned, Measurement Input | 0.19 | 0.19 | |
Measurement Input, Appraised Value [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Weighted Average | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Partially Charged Off [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans Partially Charged Off, Measurement Input | 0.00 | 0.00 | |
Measurement Input, Appraised Value [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Weighted Average | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Specifically Reserved [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans Specifically Reserved, Measurement Input | 0.16 | 0.00 | |
Measurement Input, Appraised Value [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Weighted Average | Fair Value, Measurements, Nonrecurring [Member] | Other real estate owned | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other Real Estate Owned, Measurement Input | 0.19 | 0.19 | |
Measurement Input, Cost to Sell [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Minimum | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Partially Charged Off [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans Partially Charged Off, Measurement Input | 0.10 | 0.10 | |
Measurement Input, Cost to Sell [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Minimum | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Specifically Reserved [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans Specifically Reserved, Measurement Input | 0.10 | 0.10 | |
Measurement Input, Cost to Sell [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Minimum | Fair Value, Measurements, Nonrecurring [Member] | Other real estate owned | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other Real Estate Owned, Measurement Input | 0.10 | 0.10 | |
Measurement Input, Cost to Sell [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Maximum | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Partially Charged Off [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans Partially Charged Off, Measurement Input | 0.10 | 0.10 | |
Measurement Input, Cost to Sell [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Maximum | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Specifically Reserved [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans Specifically Reserved, Measurement Input | 0.13 | 0.10 | |
Measurement Input, Cost to Sell [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Maximum | Fair Value, Measurements, Nonrecurring [Member] | Other real estate owned | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other Real Estate Owned, Measurement Input | 0.10 | 0.10 | |
Measurement Input, Cost to Sell [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Weighted Average | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Partially Charged Off [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans Partially Charged Off, Measurement Input | 0.10 | 0.10 | |
Measurement Input, Cost to Sell [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Weighted Average | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans Specifically Reserved [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Impaired Loans Specifically Reserved, Measurement Input | 0.11 | 0.10 | |
Measurement Input, Cost to Sell [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Weighted Average | Fair Value, Measurements, Nonrecurring [Member] | Other real estate owned | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Other Real Estate Owned, Measurement Input | 0.10 | 0.10 |
FAIR VALUE MEASUREMENT AND DISCLOSURE (Schedule of Carrying Amounts and Estimated Fair Value for Financial Instrument Assets and Liabilities) (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Dec. 31, 2018 |
|||||
---|---|---|---|---|---|---|---|
Financial assets: | |||||||
Available-for-sale Securities | $ 920,083 | $ 910,692 | |||||
Held-to-maturity securities, at amortized cost | 1,304 | 1,307 | |||||
Debt Securities, Held-to-maturity, Fair Value | 1,335 | 1,291 | |||||
Loans held for sale | 13,088 | 4,314 | |||||
Mortgage servicing rights | 1,450 | 1,677 | |||||
Financial liabilities: | |||||||
Time deposits | 753,533 | 654,954 | |||||
Short-term Debt, Fair Value | 241,400 | 270,598 | |||||
Long-term Debt, Fair Value | 9,974 | 11,573 | |||||
Subordinated debentures | 49,728 | 49,060 | |||||
Residential Real Estate | |||||||
Financial assets: | |||||||
Loans receivable, net of allowance | [1] | 1,022,119 | 957,957 | ||||
Commercial Real Estate | |||||||
Financial assets: | |||||||
Loans receivable, net of allowance | [1] | 1,224,937 | 1,218,436 | ||||
Commercial | |||||||
Financial assets: | |||||||
Loans receivable, net of allowance | [1],[2] | 444,719 | 404,805 | ||||
Home Equity | |||||||
Financial assets: | |||||||
Loans receivable, net of allowance | [1] | 314,030 | 317,359 | ||||
Consumer | |||||||
Financial assets: | |||||||
Loans receivable, net of allowance | [1] | 21,621 | 18,969 | ||||
Readily Available Market Prices (Level 1) | |||||||
Financial assets: | |||||||
Debt Securities, Held-to-maturity, Fair Value | 0 | 0 | |||||
Mortgage servicing rights | 0 | 0 | |||||
Financial liabilities: | |||||||
Time deposits | 0 | 0 | |||||
Short-term Debt, Fair Value | 0 | 0 | |||||
Long-term Debt, Fair Value | 0 | 0 | |||||
Subordinated debentures | 0 | 0 | |||||
Readily Available Market Prices (Level 1) | Residential Real Estate | |||||||
Financial assets: | |||||||
Loans receivable, net of allowance | 0 | 0 | |||||
Readily Available Market Prices (Level 1) | Commercial Real Estate | |||||||
Financial assets: | |||||||
Loans receivable, net of allowance | 0 | 0 | |||||
Readily Available Market Prices (Level 1) | Commercial | |||||||
Financial assets: | |||||||
Loans receivable, net of allowance | 0 | 0 | |||||
Readily Available Market Prices (Level 1) | Home Equity | |||||||
Financial assets: | |||||||
Loans receivable, net of allowance | 0 | 0 | |||||
Readily Available Market Prices (Level 1) | Consumer | |||||||
Financial assets: | |||||||
Loans receivable, net of allowance | 0 | 0 | |||||
Observable Market Data (Level 2) | |||||||
Financial assets: | |||||||
Debt Securities, Held-to-maturity, Fair Value | 1,335 | 1,291 | |||||
Mortgage servicing rights | 0 | 0 | |||||
Financial liabilities: | |||||||
Time deposits | 753,533 | 654,954 | |||||
Short-term Debt, Fair Value | 241,400 | 270,598 | |||||
Long-term Debt, Fair Value | 9,974 | 11,573 | |||||
Subordinated debentures | 49,728 | 49,060 | |||||
Observable Market Data (Level 2) | Residential Real Estate | |||||||
Financial assets: | |||||||
Loans receivable, net of allowance | 0 | 0 | |||||
Observable Market Data (Level 2) | Commercial Real Estate | |||||||
Financial assets: | |||||||
Loans receivable, net of allowance | 0 | 0 | |||||
Observable Market Data (Level 2) | Commercial | |||||||
Financial assets: | |||||||
Loans receivable, net of allowance | 0 | 0 | |||||
Observable Market Data (Level 2) | Home Equity | |||||||
Financial assets: | |||||||
Loans receivable, net of allowance | 0 | 0 | |||||
Observable Market Data (Level 2) | Consumer | |||||||
Financial assets: | |||||||
Loans receivable, net of allowance | 0 | 0 | |||||
Company Determined Fair Value (Level 3) | |||||||
Financial assets: | |||||||
Debt Securities, Held-to-maturity, Fair Value | 0 | 0 | |||||
Mortgage servicing rights | 1,450 | 1,677 | |||||
Financial liabilities: | |||||||
Time deposits | 0 | 0 | |||||
Short-term Debt, Fair Value | 0 | 0 | |||||
Long-term Debt, Fair Value | 0 | 0 | |||||
Subordinated debentures | 0 | 0 | |||||
Company Determined Fair Value (Level 3) | Residential Real Estate | |||||||
Financial assets: | |||||||
Loans receivable, net of allowance | [1] | 1,022,119 | 957,957 | ||||
Company Determined Fair Value (Level 3) | Commercial Real Estate | |||||||
Financial assets: | |||||||
Loans receivable, net of allowance | [1] | 1,224,937 | 1,218,436 | ||||
Company Determined Fair Value (Level 3) | Commercial | |||||||
Financial assets: | |||||||
Loans receivable, net of allowance | [1],[2] | 444,719 | 404,805 | ||||
Company Determined Fair Value (Level 3) | Home Equity | |||||||
Financial assets: | |||||||
Loans receivable, net of allowance | [1] | 314,030 | 317,359 | ||||
Company Determined Fair Value (Level 3) | Consumer | |||||||
Financial assets: | |||||||
Loans receivable, net of allowance | [1] | 21,621 | 18,969 | ||||
Carrying Amount | |||||||
Financial assets: | |||||||
Held-to-maturity securities, at amortized cost | 1,304 | 1,307 | |||||
Mortgage servicing rights | 795 | 831 | |||||
Financial liabilities: | |||||||
Time deposits | 754,786 | 661,281 | |||||
Short-term Debt, Fair Value | 241,647 | 270,868 | |||||
Long-term Debt, Fair Value | 10,000 | 11,580 | |||||
Subordinated debentures | 58,991 | 59,067 | |||||
Carrying Amount | Residential Real Estate | |||||||
Financial assets: | |||||||
Loans receivable, net of allowance | [1] | 1,029,543 | 986,795 | ||||
Carrying Amount | Commercial Real Estate | |||||||
Financial assets: | |||||||
Loans receivable, net of allowance | [1] | 1,248,487 | 1,257,879 | ||||
Carrying Amount | Commercial | |||||||
Financial assets: | |||||||
Loans receivable, net of allowance | [1],[2] | 452,305 | 411,479 | ||||
Carrying Amount | Home Equity | |||||||
Financial assets: | |||||||
Loans receivable, net of allowance | [1] | 320,544 | 324,967 | ||||
Carrying Amount | Consumer | |||||||
Financial assets: | |||||||
Loans receivable, net of allowance | [1] | $ 23,282 | $ 20,390 | ||||
|
FAIR VALUE MEASUREMENT AND DISCLOSURE (Narrative) (Details) - USD ($) |
Jun. 30, 2019 |
Dec. 31, 2018 |
Jun. 30, 2018 |
---|---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financing Receivable, Individually Evaluated for Impairment | $ 6,443,000 | $ 6,926,000 | $ 12,591,000 |
Substandard [Member] | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financing Receivable, Individually Evaluated for Impairment | $ 500,000 |
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