COMMITMENTS, CONTINGENCIES AND DERIVATIVES (Tables)

6 Months Ended

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:

(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

Summary of Derivative Financial Instruments

The details of the junior subordinated debt interest rate swaps for the dates indicated were as follows: 

(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	)

The details of the interest rate swap for the date indicated was as follows:

(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

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:

(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	$	—

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:

		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

Forward Delivery Commitments

The Company's forward delivery commitments on loans held for sale for the dates indicated were as follows:

		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

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)

The table below presents the effect of the Company’s derivative financial instruments included in OCI and current earnings for the periods indicated:

	For The 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