(State or other jurisdiction of | (I.R.S. Employer | ||
incorporation or organization) | Identification No.) | ||
(Address of principal executive offices) | (Zip Code) | ||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Large accelerated filer | ☐ | ☒ | ||
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, 2020 and December 31, 2019 | ||
Consolidated Statements of Income (unaudited) - Three and Six Months Ended June 30, 2020 and 2019 | ||
Consolidated Statements of Comprehensive Income (unaudited) - Three and Six Months Ended June 30, 2020 and 2019 | ||
Consolidated Statements of Changes in Shareholders’ Equity (unaudited) - Three and Six Months Ended June 30, 2020 and 2019 | ||
Consolidated Statements of Cash Flows (unaudited) - Six Months Ended June 30, 2020 and 2019 | ||
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, 2020 | December 31, 2019 | ||||||
ASSETS | ||||||||
Cash and due from banks | $ | $ | ||||||
Interest-bearing deposits in other banks (including restricted cash) | ||||||||
Total cash, cash equivalents and restricted cash | ||||||||
Investments: | ||||||||
Available-for-sale securities, at fair value (book value of $1,010,325 and $913,978, respectively) | ||||||||
Held-to-maturity securities, at amortized cost (fair value of $1,388 and $1,359, respectively) | ||||||||
Other investments | ||||||||
Total investments | ||||||||
Loans held for sale, at fair value (book value of $35,909 and $11,915, respectively) | ||||||||
Loans | ||||||||
Less: allowance for loan losses | ( | ) | ( | ) | ||||
Net loans | ||||||||
Goodwill | ||||||||
Core deposit intangible assets | ||||||||
Bank-owned life insurance | ||||||||
Premises and equipment, net | ||||||||
Deferred tax assets | ||||||||
Other assets | ||||||||
Total assets | $ | $ | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Liabilities | ||||||||
Deposits: | ||||||||
Non-interest checking | $ | $ | ||||||
Interest checking | ||||||||
Savings and money market | ||||||||
Certificates of deposit | ||||||||
Brokered deposits | ||||||||
Total deposits | ||||||||
Short-term borrowings | ||||||||
Long-term borrowings | ||||||||
Subordinated debentures | ||||||||
Accrued interest and other liabilities | ||||||||
Total liabilities | ||||||||
Commitments and Contingencies | ||||||||
Shareholders’ Equity | ||||||||
Common stock, no par value: authorized 40,000,000 shares, issued and outstanding 14,963,041 and 15,144,719 on June 30, 2020 and December 31, 2019, respectively | ||||||||
Retained earnings | ||||||||
Accumulated other comprehensive income (loss): | ||||||||
Net unrealized gain on available-for-sale debt securities, net of tax | ||||||||
Net unrealized loss on cash flow hedging derivative instruments, net of tax | ( | ) | ( | ) | ||||
Net unrecognized loss on postretirement plans, net of tax | ( | ) | ( | ) | ||||
Total accumulated other comprehensive income (loss) | ( | ) | ||||||
Total shareholders’ equity | ||||||||
Total liabilities and shareholders’ equity | $ | $ | ||||||
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) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Interest Income | ||||||||||||||||
Interest and fees on loans | $ | $ | $ | $ | ||||||||||||
Taxable interest on investments | ||||||||||||||||
Nontaxable interest on investments | ||||||||||||||||
Dividend income | ||||||||||||||||
Other interest income | ||||||||||||||||
Total interest income | ||||||||||||||||
Interest Expense | ||||||||||||||||
Interest on deposits | ||||||||||||||||
Interest on borrowings | ||||||||||||||||
Interest on subordinated debentures | ||||||||||||||||
Total interest expense | ||||||||||||||||
Net interest income | ||||||||||||||||
Provision for credit losses | ||||||||||||||||
Net interest income after provision for credit losses | ||||||||||||||||
Non-Interest Income | ||||||||||||||||
Mortgage banking income, net | ||||||||||||||||
Debit card income | ||||||||||||||||
Service charges on deposit accounts | ||||||||||||||||
Income from fiduciary services | ||||||||||||||||
Bank-owned life insurance | ||||||||||||||||
Brokerage and insurance commissions | ||||||||||||||||
Customer loan swap fees | ||||||||||||||||
Net gain on sale of securities | ||||||||||||||||
Other income | ||||||||||||||||
Total non-interest income | ||||||||||||||||
Non-Interest Expense | ||||||||||||||||
Salaries and employee benefits | ||||||||||||||||
Furniture, equipment and data processing | ||||||||||||||||
Net occupancy costs | ||||||||||||||||
Consulting and professional fees | ||||||||||||||||
Debit card expense | ||||||||||||||||
Regulatory assessments | ||||||||||||||||
Amortization of core deposit intangible assets | ||||||||||||||||
Other real estate owned and collection costs, net | ||||||||||||||||
Other expenses | ||||||||||||||||
Total non-interest expense | ||||||||||||||||
Income before income tax expense | ||||||||||||||||
Income Tax Expense | ||||||||||||||||
Net Income | $ | $ | $ | $ | ||||||||||||
Per Share Data | ||||||||||||||||
Basic earnings per share | $ | $ | $ | $ | ||||||||||||
Diluted earnings per share | $ | $ | $ | $ | ||||||||||||
Weighted average number of common shares outstanding | ||||||||||||||||
Diluted weighted average number of common shares outstanding | ||||||||||||||||
Cash dividends declared per share | $ | $ | $ | $ | ||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Net Income | $ | $ | $ | $ | ||||||||||||
Other comprehensive income: | ||||||||||||||||
Net change in unrealized gain on available-for-sale securities, net of tax | ||||||||||||||||
Net change in unrealized loss on cash flow hedging derivatives, net of tax | ( | ) | ( | ) | ( | ) | ||||||||||
Net gain on postretirement plans, net of tax | ||||||||||||||||
Other comprehensive income | ||||||||||||||||
Comprehensive Income | $ | $ | $ | $ | ||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (unaudited) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | ||||||||||||||||
(In thousands, except number of shares and per share data) | Shares Outstanding | Amount | |||||||||||||||||
Balance at March 31, 2019 | $ | $ | $ | ( | ) | $ | |||||||||||||
Net income | — | — | — | ||||||||||||||||
Other comprehensive income, net of tax | — | — | — | ||||||||||||||||
Stock-based compensation expense | — | — | — | ||||||||||||||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings | ( | ) | — | — | ( | ) | |||||||||||||
Common stock repurchased | ( | ) | ( | ) | — | — | ( | ) | |||||||||||
Cash dividends declared ($0.30 per share) | — | — | ( | ) | — | ( | ) | ||||||||||||
Balance at June 30, 2019 | $ | $ | $ | ( | ) | $ | |||||||||||||
Balance at March 31, 2020 | $ | $ | $ | $ | |||||||||||||||
Net income | — | — | — | ||||||||||||||||
Other comprehensive income, net of tax | — | — | — | ||||||||||||||||
Stock-based compensation expense | — | — | — | ||||||||||||||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings | ( | ) | — | — | ( | ) | |||||||||||||
Cash dividends declared ($0.33 per share) | — | — | ( | ) | — | ( | ) | ||||||||||||
Balance at June 30, 2020 | $ | $ | $ | $ | |||||||||||||||
Six Months Ended | |||||||||||||||||||
Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | ||||||||||||||||
(In thousands, except number of shares and per share data) | Shares Outstanding | Amount | |||||||||||||||||
Balance at December 31, 2018 | $ | $ | $ | ( | ) | $ | |||||||||||||
Cumulative-effect adjustment upon adoption of ASU 2016-02(1) | — | — | — | ||||||||||||||||
Net income | — | — | — | ||||||||||||||||
Other comprehensive income, net of tax | — | — | — | ||||||||||||||||
Stock-based compensation expense | — | — | — | ||||||||||||||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings | ( | ) | — | — | ( | ) | |||||||||||||
Common stock repurchased | ( | ) | ( | ) | — | — | ( | ) | |||||||||||
Cash dividends declared ($0.60 per share) | — | — | ( | ) | — | ( | ) | ||||||||||||
Balance at June 30, 2019 | $ | $ | $ | ( | ) | $ | |||||||||||||
Balance at December 31, 2019 | $ | $ | $ | ( | ) | $ | |||||||||||||
Net income | — | — | — | ||||||||||||||||
Other comprehensive income, net of tax | — | — | — | ||||||||||||||||
Stock-based compensation expense | — | — | — | ||||||||||||||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings | ( | ) | — | — | ( | ) | |||||||||||||
Common stock repurchased | ( | ) | ( | ) | — | — | ( | ) | |||||||||||
Cash dividends declared ($0.66 per share) | — | — | ( | ) | — | ( | ) | ||||||||||||
Balance at June 30, 2020 | $ | $ | $ | $ | |||||||||||||||
(1) | Effective January 1, 2019, the Company adopted ASU 2016-02, Leases, on a modified-retrospective basis. |
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | ||||||||
Six Months Ended June 30, | ||||||||
(In thousands) | 2020 | 2019 | ||||||
Operating Activities | ||||||||
Net Income | $ | $ | ||||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||
Originations of mortgage loans held for sale | ( | ) | ( | ) | ||||
Proceeds from the sale of mortgage loans | ||||||||
Gain on sale of mortgage loans, net of origination costs | ( | ) | ( | ) | ||||
Provision for credit losses | ||||||||
Depreciation and amortization expense | ||||||||
Investment securities amortization and accretion, net | ||||||||
Stock-based compensation expense | ||||||||
Amortization of intangible assets | ||||||||
Purchase accounting accretion, net | ( | ) | ( | ) | ||||
Net increase in derivative collateral | ( | ) | ( | ) | ||||
Increase in other assets | ( | ) | ( | ) | ||||
Increase (decrease) in other liabilities | ( | ) | ||||||
Net cash used in operating activities | ( | ) | ( | ) | ||||
Investing Activities | ||||||||
Proceeds from sales and maturities of available-for-sale securities | ||||||||
Purchase of available-for-sale securities | ( | ) | ( | ) | ||||
Net increase in loans | ( | ) | ( | ) | ||||
Purchase of Federal Home Loan Bank stock | ( | ) | ( | ) | ||||
Proceeds from sale of Federal Home Loan Bank stock | ||||||||
Purchase of premises and equipment | ( | ) | ( | ) | ||||
Recoveries of previously charged-off loans | ||||||||
Proceeds from the sale of other real estate owned | ||||||||
Net cash used in investing activities | ( | ) | ( | ) | ||||
Financing Activities | ||||||||
Net increase in deposits | ||||||||
Net repayments of borrowings less than 90 days | ( | ) | ( | ) | ||||
Proceeds from Federal Home Loan Bank long-term advances | ||||||||
Repayments of Federal Home Loan Bank long-term advances | ( | ) | ||||||
Common stock repurchases | ( | ) | ( | ) | ||||
Exercise of stock options and issuance of restricted stock, net of repurchase for tax withholdings | ( | ) | ( | ) | ||||
Cash dividends paid on common stock | ( | ) | ( | ) | ||||
Finance lease payments | ( | ) | ( | ) | ||||
Net cash provided by financing activities | ||||||||
Net increase in cash, cash equivalents and restricted cash | ||||||||
Cash, cash equivalents, and restricted cash at beginning of period | ||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ | ||||||
Supplemental information | ||||||||
Interest paid | $ | $ | ||||||
Income taxes paid | ||||||||
Transfer from loans and premises to other real estate owned | ||||||||
Unsettled common stock repurchase | ||||||||
AFS: | Available-for-sale | HPFC: | Healthcare Professional Funding Corporation, a wholly-owned subsidiary of Camden National Bank | |
ALCO: | Asset/Liability Committee | HTM: | Held-to-maturity | |
ALL: | Allowance for loan losses | IRS: | Internal Revenue Service | |
AOCI: | Accumulated other comprehensive income (loss) | LIBOR: | London Interbank Offered Rate | |
ASC: | Accounting Standards Codification | LTIP: | Long-Term Performance Share Plan | |
ASU: | Accounting Standards Update | Management ALCO: | Management Asset/Liability Committee | |
Bank: | Camden National Bank, a wholly-owned subsidiary of Camden National Corporation | MBS: | Mortgage-backed security | |
BOLI: | Bank-owned life insurance | MSPP: | Management Stock Purchase Plan | |
Board ALCO: | Board of Directors' Asset/Liability Committee | N/A: | Not applicable | |
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 | SBA: | Small Business Administration | |
FASB: | Financial Accounting Standards Board | SERP: | Supplemental executive retirement plans | |
FDIC: | Federal Deposit Insurance Corporation | Tax Act: | Tax Cuts and Jobs Act of 2017, enacted on December 22, 2017 | |
FHLB: | Federal Home Loan Bank | TDR: | Troubled-debt restructured loan | |
FHLBB: | Federal Home Loan Bank of Boston | UBCT: | Union Bankshares Capital Trust I, an unconsolidated entity formed by Union Bankshares Company that was subsequently acquired by Camden National Corporation | |
FRB: | Federal Reserve System Board of Governors | U.S.: | United States of America | |
FRBB: | Federal Reserve Bank of Boston | 2003 Plan: | 2003 Stock Option and Incentive Plan | |
GAAP: | Generally accepted accounting principles in the United States | 2012 Plan: | 2012 Equity and Incentive Plan | |
(In thousands) | Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||
June 30, 2020 | ||||||||||||||||
AFS Investments (carried at fair value): | ||||||||||||||||
Obligations of states and political subdivisions | $ | $ | $ | ( | ) | $ | ||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ( | ) | ||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ( | ) | ||||||||||||||
Subordinated corporate bonds | ( | ) | ||||||||||||||
Total AFS investments | $ | $ | $ | ( | ) | $ | ||||||||||
HTM Investments (carried at amortized cost): | ||||||||||||||||
Obligations of states and political subdivisions | $ | $ | $ | $ | ||||||||||||
Total HTM investments | $ | $ | $ | $ | ||||||||||||
December 31, 2019 | ||||||||||||||||
AFS Investments (carried at fair value): | ||||||||||||||||
Obligations of states and political subdivisions | $ | $ | $ | ( | ) | $ | ||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ( | ) | ||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ( | ) | ||||||||||||||
Subordinated corporate bonds | ||||||||||||||||
Total AFS investments | $ | $ | $ | ( | ) | $ | ||||||||||
HTM Investments (carried at amortized cost): | ||||||||||||||||
Obligations of states and political subdivisions | $ | $ | $ | $ | ||||||||||||
Total HTM investments | $ | $ | $ | $ | ||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||
(In thousands, except number of holdings) | Number of Holdings | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||
June 30, 2020 | |||||||||||||||||||||||||||
AFS Investments: | |||||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | $ | ( | ) | $ | $ | $ | $ | ( | ) | |||||||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ( | ) | ( | ) | |||||||||||||||||||||||
Subordinated corporate bonds | ( | ) | ( | ) | |||||||||||||||||||||||
Total AFS investments | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | |||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||
AFS Investments: | |||||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | $ | ( | ) | $ | $ | $ | $ | ( | ) | |||||||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Total AFS investments | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Proceeds from sales of investments(1) | $ | $ | $ | $ | ||||||||||||
Gross realized gains | ||||||||||||||||
Gross realized losses | ( | ) | ( | ) | ||||||||||||
(In thousands) | Amortized Cost | Fair Value | ||||||
AFS Investments | ||||||||
Due in one year or less | $ | $ | ||||||
Due after one year through five years | ||||||||
Due after five years through ten years | ||||||||
Due after ten years | ||||||||
Total | $ | $ | ||||||
HTM Investments | ||||||||
Due in one year or less | $ | $ | ||||||
Due after one year through five years | ||||||||
Due after five years through ten years | ||||||||
Due after ten years | ||||||||
Total | $ | $ | ||||||
(In thousands) | Cost | Unrealized Gains | Unrealized Losses | Fair Value / Carrying Value | ||||||||||||
June 30, 2020 | ||||||||||||||||
Equity securities - bank stock (carried at fair value) | $ | $ | $ | $ | ||||||||||||
FHLBB (carried at cost) | — | — | ||||||||||||||
FRB (carried at cost) | — | — | ||||||||||||||
Total other investments | $ | $ | $ | $ | ||||||||||||
December 31, 2019 | ||||||||||||||||
Equity securities - bank stock (carried at fair value) | $ | $ | $ | $ | ||||||||||||
FHLBB (carried at cost) | — | — | ||||||||||||||
FRB (carried at cost) | — | — | ||||||||||||||
Total other investments | $ | $ | $ | $ | ||||||||||||
(In thousands) | June 30, 2020 | December 31, 2019 | ||||||
Commercial real estate | $ | $ | ||||||
Commercial | ||||||||
SBA PPP | ||||||||
HPFC | ||||||||
Residential real estate | ||||||||
Home equity | ||||||||
Consumer | ||||||||
Total loans | $ | $ | ||||||
(In thousands) | June 30, 2020 | December 31, 2019 | ||||||
Net unamortized fair value mark discount on acquired loans | $ | ( | ) | $ | ( | ) | ||
Net unamortized loan (fees) origination costs(1) | ( | ) | ||||||
Total | $ | ( | ) | $ | ||||
(1) | The change in net unamortized loan (fees) origination costs from December 31, 2019 to June 30, 2020, was primarily driven by origination fees capitalized upon origination of SBA PPP loans during the second quarter of 2020. As of June 30, 2020, unamortized loan fees on originated SBA PPP loans were $ |
(In thousands) | Commercial Real Estate | Commercial | SBA PPP | HPFC | Residential Real Estate | Home Equity | Consumer | Total | ||||||||||||||||||||||||
At or For The Three Months Ended June 30, 2020 | ||||||||||||||||||||||||||||||||
ALL for the three months ended: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Loans charged off | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||
Provision (credit)(1) | ( | ) | ||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
ALL for the six months ended: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Loans charged off | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||
Provision (credit)(1) | ( | ) | ||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
ALL balance attributable to loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Collectively evaluated for impairment | ||||||||||||||||||||||||||||||||
Total ending ALL | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Collectively evaluated for impairment | ||||||||||||||||||||||||||||||||
Total ending loans balance | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
At or For The Three Months Ended June 30, 2019 | ||||||||||||||||||||||||||||||||
ALL for the three months ended: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Loans charged off | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||
Provision (credit)(1) | ( | ) | ( | ) | ||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
ALL for the six months ended: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Loans charged off | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||
Recoveries | ||||||||||||||||||||||||||||||||
Provision (credit)(1) | ( | ) | ||||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
ALL balance attributable to loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Collectively evaluated for impairment | ||||||||||||||||||||||||||||||||
Total ending ALL | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Collectively evaluated for impairment | ||||||||||||||||||||||||||||||||
Total ending loans balance | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
(In thousands) | Commercial Real Estate | Commercial | SBA PPP | HPFC | Residential Real Estate | Home Equity | Consumer | Total | ||||||||||||||||||||||||
At or For The Year Ended December 31, 2019 | ||||||||||||||||||||||||||||||||
ALL: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | $ | $ | — | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Loans charged off | ( | ) | ( | ) | — | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Recoveries | — | — | ||||||||||||||||||||||||||||||
Provision (credit)(1) | — | ( | ) | |||||||||||||||||||||||||||||
Ending balance | $ | $ | $ | — | $ | $ | $ | $ | $ | |||||||||||||||||||||||
ALL balance attributable to loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | $ | — | $ | — | $ | — | $ | $ | $ | — | $ | ||||||||||||||||||||
Collectively evaluated for impairment | — | |||||||||||||||||||||||||||||||
Total ending ALL | $ | $ | $ | — | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | — | $ | — | $ | $ | $ | — | $ | |||||||||||||||||||||
Collectively evaluated for impairment | — | |||||||||||||||||||||||||||||||
Total ending loans balance | $ | $ | $ | — | $ | $ | $ | $ | $ | |||||||||||||||||||||||
(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, 2020 and 2019, and December 31, 2019, the reserve for unfunded commitments was $ |
Three Months Ended June 30, | Six Months Ended June 30, | Year Ended December 31, 2019 | ||||||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
Provision for loan losses | $ | $ | $ | $ | $ | |||||||||||||||
Change in reserve for unfunded commitments | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||
Provision for credit losses | $ | $ | $ | $ | $ | |||||||||||||||
• | 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) | Commercial Real Estate | Commercial | SBA PPP | HPFC | Residential Real Estate | Home Equity | Consumer | Total | ||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||||||||||
Pass (Grades 1-6) | $ | $ | $ | $ | $ | $ | — | $ | — | $ | ||||||||||||||||||||||
Performing | — | — | — | — | — | |||||||||||||||||||||||||||
Special Mention (Grade 7) | — | — | — | — | ||||||||||||||||||||||||||||
Substandard (Grade 8) | — | — | — | |||||||||||||||||||||||||||||
Non-performing | — | — | — | — | — | |||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||||
Pass (Grades 1-6) | $ | $ | $ | — | $ | $ | $ | — | $ | — | $ | |||||||||||||||||||||
Performing | — | — | — | — | — | |||||||||||||||||||||||||||
Special Mention (Grade 7) | — | — | — | |||||||||||||||||||||||||||||
Substandard (Grade 8) | — | — | — | |||||||||||||||||||||||||||||
Non-performing | — | — | — | — | — | |||||||||||||||||||||||||||
Total | $ | $ | $ | — | $ | $ | $ | $ | $ | |||||||||||||||||||||||
(In thousands) | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days or Greater Past Due | Total Past Due | Current | Total Loans Outstanding | Loans > 90 Days Past Due and Accruing | Non-Accrual Loans | ||||||||||||||||||||||||
June 30, 2020 | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
SBA PPP | ||||||||||||||||||||||||||||||||
HPFC | ||||||||||||||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||
SBA PPP | ||||||||||||||||||||||||||||||||
HPFC | ||||||||||||||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||||||||||
Home equity | ||||||||||||||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Number of Contracts | Recorded Investment | Specific Reserve | ||||||||||||||||||||
(In thousands, except number of contracts) | June 30, 2020 | December 31, 2019 | June 30, 2020 | December 31, 2019 | June 30, 2020 | December 31, 2019 | ||||||||||||||||
Residential real estate | $ | $ | $ | $ | ||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||
Commercial | ||||||||||||||||||||||
Consumer and home equity | ||||||||||||||||||||||
Total | $ | $ | $ | $ | ||||||||||||||||||
1. | The Company may account for a loan modification in accordance with Section 4013 of the CARES Act if the loan modification (i) meets the criteria set forth in Section 4013 of the CARES Act and (ii) the Company elects to apply Section 4013 of the CARES Act. Section 4013 of the CARES Act suspended TDR designation for loan modifications related to the COVID-19 pandemic. In order for the loan modification to qualify under Section 4013 of the CARES Act, the loan must not have been more than 30 days past due as of December 31, 2019. This guidance is applicable for loan modifications beginning on March 1, 2020 and ending on the earlier of (i) December 31, 2020, or (ii) the date that is 60 days after the date the national emergency concerning the COVID-19 pandemic declared by the President on March 13, 2020 under the National Emergencies Act terminates. |
2. | Should a loan modification (i) not meet the criteria set forth in Section 4013 of the CARES Act or (ii) the Company elects to not apply Section 4013 of the CARES Act, but the loan modification (a) meets the criteria provided in the "Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised)," issued by the banking agencies on April 7, 2020, and (b) the Company elects to apply this guidance, then the Company may account for the loan modification in accordance with the interagency guidance. Under this guidance, if the loan was no more than 30 days past due at the time the loan modification program was implemented, the modification was short-term in duration (generally, less than six months), and the modification was related to the COVID-19 pandemic, then it may be presumed that the borrower is not experiencing financial difficulty, and, therefore, that the modification does not qualify as a TDR. |
3. | Should a loan modification (i) not meet the criteria set forth in Section 4013 of the CARES Act or the interagency guidance described above, or (ii) the Company elects not to apply the guidance, then the Company would assess the loan modification under its existing accounting policies (GAAP). |
June 30, 2020 | July 23, 2020 | |||||||||||||
(In thousands, except number of units) | Units | Recorded Investment | Units | Recorded Investment | ||||||||||
Original Loan Modification: | ||||||||||||||
Commercial | $ | $ | ||||||||||||
Retail | ||||||||||||||
Total | ||||||||||||||
Second Loan Modification: | ||||||||||||||
Commercial | ||||||||||||||
Retail | ||||||||||||||
Total | ||||||||||||||
Total | $ | $ | ||||||||||||
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(1) | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||
June 30, 2020: | ||||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Commercial | — | — | — | — | ||||||||||||||||||||||||
SBA PPP | — | — | — | — | ||||||||||||||||||||||||
HPFC | — | — | — | — | ||||||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||||||
Home equity | — | — | ||||||||||||||||||||||||||
Consumer | — | — | — | — | ||||||||||||||||||||||||
Ending balance | ||||||||||||||||||||||||||||
Without an allowance recorded: | ||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
SBA PPP | — | — | — | — | ||||||||||||||||||||||||
HPFC | — | — | — | — | ||||||||||||||||||||||||
Residential real estate | ( | ) | ||||||||||||||||||||||||||
Home equity | — | — | ||||||||||||||||||||||||||
Consumer | — | — | — | — | ||||||||||||||||||||||||
Ending balance | ||||||||||||||||||||||||||||
Total impaired loans | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
June 30, 2019: | ||||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Commercial | — | — | ||||||||||||||||||||||||||
SBA PPP | — | — | — | — | ||||||||||||||||||||||||
HPFC | — | — | — | — | ||||||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||||||
Home equity | — | — | ||||||||||||||||||||||||||
Consumer | — | — | — | — | ||||||||||||||||||||||||
Ending Balance | ||||||||||||||||||||||||||||
Without an allowance recorded: | ||||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
SBA PPP | — | — | — | — | ||||||||||||||||||||||||
HPFC | — | — | — | — | ||||||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||||||
Home equity | — | — | ||||||||||||||||||||||||||
Consumer | — | — | — | |||||||||||||||||||||||||
Ending Balance | ||||||||||||||||||||||||||||
Total impaired loans | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
(1) | Negative interest income represents the re-allocation of income between "with an allowance recorded" and "without an allowance recorded" (or vice versa) during the period. |
For the Year Ended | ||||||||||||||||||||
(In thousands) | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||
December 31, 2019: | ||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial real estate | $ | $ | $ | $ | $ | |||||||||||||||
Commercial | — | |||||||||||||||||||
SBA PPP | — | |||||||||||||||||||
HPFC | — | |||||||||||||||||||
Residential real estate | ||||||||||||||||||||
Home equity | — | |||||||||||||||||||
Consumer | — | |||||||||||||||||||
Ending Balance | ||||||||||||||||||||
Without an allowance recorded: | ||||||||||||||||||||
Commercial real estate | — | |||||||||||||||||||
Commercial | — | |||||||||||||||||||
SBA PPP | — | |||||||||||||||||||
HPFC | — | — | ||||||||||||||||||
Residential real estate | — | |||||||||||||||||||
Home equity | — | — | ||||||||||||||||||
Consumer | — | — | ||||||||||||||||||
Ending Balance | — | |||||||||||||||||||
Total impaired loans | $ | $ | $ | $ | $ | |||||||||||||||
(In thousands) | June 30, 2020 | December 31, 2019 | ||||||
Short-Term Borrowings: | ||||||||
Customer repurchase agreements | $ | $ | ||||||
FHLBB borrowings | ||||||||
Overnight borrowings | ||||||||
Total short-term borrowings | $ | $ | ||||||
Long-Term Borrowings: | ||||||||
FHLBB borrowings | $ | $ | ||||||
Total long-term borrowings | $ | $ | ||||||
(In thousands) | June 30, 2020 | December 31, 2019 | ||||||
Customer Repurchase Agreements(1)(2): | ||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | $ | $ | ||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||||||||
Obligations of states and political subdivisions | ||||||||
Total | $ | $ | ||||||
(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, 2020 | December 31, 2019 | ||||||
Commitments to extend credit | $ | $ | ||||||
Standby letters of credit | ||||||||
Total | $ | $ | ||||||
(In thousands, except number of positions) | June 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
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 | $ | $ | $ | $ | ( | ) | |||||||||||||||||
Receive fixed, pay variable | Other assets | |||||||||||||||||||||||
Pay fixed, receive variable | Accrued interest and other liabilities | ( | ) | ( | ) | |||||||||||||||||||
Total | $ | $ | $ | $ | ||||||||||||||||||||
June 30, 2020 | December 31, 2019 | |||||||||||||||||
(In thousands) | Presentation on Consolidated Statements of Condition | Notional Amount | Fair Value | Notional Amount | Fair Value | |||||||||||||
Fixed-rate mortgage interest rate locks | Other assets | $ | $ | $ | $ | |||||||||||||
Fixed-rate mortgage interest rate locks | Accrued interest and other liabilities | ( | ) | ( | ) | |||||||||||||
Total | $ | $ | $ | $ | ||||||||||||||
June 30, 2020 | December 31, 2019 | |||||||||||||||||
(In thousands) | Presentation on Consolidated Statements of Condition | Notional Amount | Fair Value | Notional Amount | Fair Value | |||||||||||||
Forward delivery commitments ("best effort") | Other Assets | $ | $ | $ | $ | |||||||||||||
Forward delivery commitments ("best effort") | Accrued interest and other liabilities | ( | ) | ( | ) | |||||||||||||
Total | $ | $ | $ | $ | ||||||||||||||
(Dollars in thousands) | June 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
Trade Date | Maturity Date | Variable Index Paid | Fixed Rate Received | Presentation on Consolidated Statements of Condition | Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||||||||
1-Month USD LIBOR | Other assets | $ | $ | $ | $ | |||||||||||||||||||
(Dollars in thousands) | June 30, 2020 | |||||||||||||||
Trade Date | Maturity Date | Variable Index Received | Fixed Rate Paid | Presentation on Consolidated Statements of Condition | Notional Amount | Fair Value | ||||||||||
Fed Funds Effective Rate | Accrued interest and other liabilities | $ | $ | ( | ) | |||||||||||
3-Month USD LIBOR | Accrued interest and other liabilities | ( | ) | |||||||||||||
$ | $ | ( | ) | |||||||||||||
(Dollars in thousands) | June 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
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-Month USD LIBOR | Accrued interest and other liabilities | $ | $ | ( | ) | $ | $ | ( | ) | |||||||||||||||
3-Month USD LIBOR | Accrued interest and other liabilities | ( | ) | ( | ) | |||||||||||||||||||
3-Month USD LIBOR | Accrued interest and other liabilities | ( | ) | ( | ) | |||||||||||||||||||
3-Month USD LIBOR | Accrued interest and other liabilities | ( | ) | ( | ) | |||||||||||||||||||
3-Month USD LIBOR | Accrued interest and other liabilities | ( | ) | ( | ) | |||||||||||||||||||
$ | $ | ( | ) | $ | $ | ( | ) | |||||||||||||||||
For The Three Months Ended June 30, | For The Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Derivatives designated as cash flow hedges: | ||||||||||||||||
Effective portion of unrealized losses recognized within OCI during the period, net of tax | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Net reclassification adjustment for effective portion of cash flow hedges included in interest expense, gross | $ | $ | $ | $ | ||||||||||||
Net reclassification adjustment for effective portion of cash flow hedges included in interest income, gross | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||
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, 2020 | ||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||
Customer loan swaps - commercial customer(2) | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Interest rate swap on loans(3) | ( | ) | ||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||
Customer loan swaps - dealer bank | $ | $ | $ | $ | $ | |||||||||||||||||||
Junior subordinated debt interest rate swaps | ||||||||||||||||||||||||
Interest rate swaps on borrowings(3) | ||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Customer repurchase agreements | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||
Customer loan swaps - commercial customer(2) | ||||||||||||||||||||||||
Interest rate swap on loans | ( | ) | ||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||
Customer loan swaps - dealer bank | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Junior subordinated debt interest rate swaps | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Customer loan swaps - commercial customer(2) | ||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Customer repurchase agreements | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
(1) | The amount presented was the lesser of the amount pledged (received) or the net amount presented in the consolidated statements of condition. |
(3) | Interest rate swap contracts were completed with the same dealer bank. The Company maintains a master netting arrangement and settles collateral requested or pledged on a net basis for all contracts. |
June 30, 2020 | 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, 2019 | 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 | $ | % | % | N/A | $ | % | % | N/A | ||||||||||||||||||
Tier 1 risk-based capital ratio | % | % | N/A | % | % | N/A | ||||||||||||||||||||
Common equity Tier 1 risk-based capital ratio | % | % | N/A | % | % | N/A | ||||||||||||||||||||
Tier 1 leverage capital ratio | % | % | N/A | % | % | N/A | ||||||||||||||||||||
Camden National Bank: | ||||||||||||||||||||||||||
Total risk-based capital ratio | $ | % | % | % | $ | % | % | % | ||||||||||||||||||
Tier 1 risk-based capital ratio | % | % | % | % | % | % | ||||||||||||||||||||
Common equity Tier 1 risk-based capital ratio | % | % | % | % | % | % | ||||||||||||||||||||
Tier 1 leverage capital ratio | % | % | % | % | % | % | ||||||||||||||||||||
For The Three Months Ended | ||||||||||||||||||||||||
June 30, 2020 | June 30, 2019 | |||||||||||||||||||||||
(In thousands) | Pre-Tax Amount | Tax (Expense) Benefit | After-Tax Amount | Pre-Tax Amount | Tax (Expense) Benefit | After-Tax Amount | ||||||||||||||||||
AFS Securities: | ||||||||||||||||||||||||
Unrealized holdings gains | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | ||||||||||||||
Less: reclassification adjustment for net realized losses(1) | ( | ) | ||||||||||||||||||||||
Net unrealized gains | ( | ) | ( | ) | ||||||||||||||||||||
Cash Flow Hedges: | ||||||||||||||||||||||||
Net decrease in fair value | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||
Less: effective portion reclassified into interest expense(2) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||
Less: effective portion reclassified into interest income(3) | ( | ) | ||||||||||||||||||||||
Net increase (decrease) in fair value | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Postretirement Plans: | ||||||||||||||||||||||||
Net actuarial gain | ( | ) | ( | ) | ||||||||||||||||||||
Less: Amortization of net prior service credits(4) | ( | ) | ( | ) | ||||||||||||||||||||
Net gain on postretirement plans | ( | ) | ( | ) | ||||||||||||||||||||
Other comprehensive income | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | ||||||||||||||
For The Six Months Ended | ||||||||||||||||||||||||
June 30, 2020 | June 30, 2019 | |||||||||||||||||||||||
(In thousands) | Pre-Tax Amount | Tax (Expense) Benefit | After-Tax Amount | Pre-Tax Amount | Tax (Expense) Benefit | After-Tax Amount | ||||||||||||||||||
AFS Securities: | ||||||||||||||||||||||||
Unrealized holdings gains | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | ||||||||||||||
Less: reclassification adjustment for net realized gains(1) | ( | ) | ||||||||||||||||||||||
Net unrealized gains | ( | ) | ( | ) | ||||||||||||||||||||
Cash Flow Hedges: | ||||||||||||||||||||||||
Net decrease in fair value | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||
Less: effective portion reclassified into interest expense(2) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||
Less: effective portion reclassified into interest income(3) | ( | ) | ||||||||||||||||||||||
Net decrease in fair value | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||
Postretirement Plans: | ||||||||||||||||||||||||
Net actuarial gain | ( | ) | ( | ) | ||||||||||||||||||||
Less: Amortization of net prior service credits(4) | ( | ) | ( | ) | ||||||||||||||||||||
Net gain on postretirement plans | ( | ) | ( | ) | ||||||||||||||||||||
Other comprehensive income | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | ||||||||||||||
(1) | Reclassified into net gain on sale of securities on the consolidated statements of income. |
(2) | Reclassified into interest on borrowings and/or subordinated debentures on the consolidated statements of income. |
(3) | Reclassified into interest and fees on loans on the consolidated statements of income. |
(4) | Reclassified into compensation and related benefits and other expense on the consolidated statements of income. |
(In thousands) | Net Unrealized Gains (Losses) on AFS Securities(1) | Net Unrealized Losses on Cash Flow Hedges(1) | Defined Benefit Postretirement Plans(1) | AOCI(1) | ||||||||||||
Balance at December 31, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Other comprehensive income (loss) before reclassifications | ( | ) | ||||||||||||||
Less: Amounts reclassified from AOCI | ( | ) | ( | ) | ||||||||||||
Other comprehensive income (loss) | ( | ) | ||||||||||||||
Balance at June 30, 2019 | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Balance at December 31, 2019 | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Other comprehensive income (loss) before reclassifications | ( | ) | ||||||||||||||
Less: Amounts reclassified from AOCI | ( | ) | ( | ) | ||||||||||||
Other comprehensive income (loss) | ( | ) | ||||||||||||||
Balance at June 30, 2020 | $ | $ | ( | ) | $ | ( | ) | $ | ||||||||
(1) | All amounts are net of tax. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
(In thousands) | Income Statement Line Item | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Debit card interchange income | Debit card income | $ | $ | $ | $ | |||||||||||||
Services charges on deposit accounts | Service charges on deposit accounts | |||||||||||||||||
Fiduciary services income | Income from fiduciary services | |||||||||||||||||
Investment program income | Brokerage and insurance commissions | |||||||||||||||||
Other non-interest income | Other income | |||||||||||||||||
Total non-interest income within the scope of ASC 606 | ||||||||||||||||||
Total non-interest income not in scope of ASC 606 | ||||||||||||||||||
Total non-interest income | $ | $ | $ | $ | ||||||||||||||
(In thousands) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Net periodic pension cost | Income Statement Presentation | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Service cost | Salaries and employee benefits | $ | $ | $ | $ | |||||||||||||
Interest cost | Other expenses | |||||||||||||||||
Recognized net actuarial loss | Other expenses | |||||||||||||||||
Total | $ | $ | $ | $ | ||||||||||||||
(In thousands) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
Net periodic postretirement benefit cost | Income Statement Presentation | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Service cost | Salaries and employee benefits | $ | $ | $ | $ | |||||||||||||
Interest cost | Other expenses | |||||||||||||||||
Recognized net actuarial loss | Other expenses | |||||||||||||||||
Amortization of prior service credit | Other expenses | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||
Total | $ | $ | $ | $ | ||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands, except number of shares and per share data) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||
Dividends and undistributed earnings allocated to participating securities(1) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Net income available to common shareholders | $ | $ | $ | $ | ||||||||||||
Weighted-average common shares outstanding for basic EPS | ||||||||||||||||
Dilutive effect of stock-based awards(2) | ||||||||||||||||
Weighted-average common and potential common shares for diluted EPS | ||||||||||||||||
Earnings per common share: | ||||||||||||||||
Basic EPS | $ | $ | $ | $ | ||||||||||||
Diluted EPS | $ | $ | $ | $ | ||||||||||||
Awards excluded from the calculation of diluted EPS(3): | ||||||||||||||||
Stock options | ||||||||||||||||
(1) | Represents dividends paid and undistributed earnings allocated to nonvested stock-based awards that contain non-forfeitable rights to dividends. |
(2) | Represents the assumed dilutive effect of unexercised and/or unvested stock options, restricted shares, restricted share units and contingently issuable performance-based awards utilizing the treasury stock method. |
(3) | Represents stock-based awards not included in the computation of potential common shares for purposes of calculating diluted EPS as the exercise prices were greater than the average market price of the Company's common stock, and, therefore, are considered anti-dilutive. |
(In thousands) | Fair Value | Readily Available Market Prices (Level 1) | Observable Market Data (Level 2) | Company Determined Fair Value (Level 3) | ||||||||||||
June 30, 2020 | ||||||||||||||||
Financial assets: | ||||||||||||||||
Loans held for sale | $ | $ | $ | $ | ||||||||||||
AFS investments: | ||||||||||||||||
Obligations of states and political subdivisions | — | — | ||||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | — | — | ||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | — | — | ||||||||||||||
Subordinated corporate bonds | ||||||||||||||||
Equity securities - bank stock | ||||||||||||||||
Customer loan swaps | — | — | ||||||||||||||
Interest rate swap on loans | — | — | ||||||||||||||
Fixed-rate mortgage interest rate lock commitments | — | — | ||||||||||||||
Forward delivery commitments | — | — | ||||||||||||||
Financial liabilities: | ||||||||||||||||
Junior subordinated debt interest rate swaps | — | — | ||||||||||||||
Customer loan swaps | ||||||||||||||||
Interest rate swap on borrowings | — | — | ||||||||||||||
Fixed-rate mortgage interest rate lock commitments | — | |||||||||||||||
Forward delivery commitments | — | |||||||||||||||
December 31, 2019 | ||||||||||||||||
Financial assets: | ||||||||||||||||
Loans held for sale | $ | $ | $ | $ | ||||||||||||
AFS investments: | ||||||||||||||||
Obligations of states and political subdivisions | — | — | ||||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | — | — | ||||||||||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | — | — | ||||||||||||||
Subordinated corporate bonds | ||||||||||||||||
Equity securities - bank stock | ||||||||||||||||
Customer loan swaps | — | — | ||||||||||||||
Interest rate swap on loans | — | — | ||||||||||||||
Fixed-rate mortgage interest rate lock commitments | — | — | ||||||||||||||
Forward delivery commitments | — | — | ||||||||||||||
Financial liabilities: | ||||||||||||||||
Junior subordinated debt interest rate swaps | — | — | ||||||||||||||
Customer loan swaps | — | — | ||||||||||||||
Fixed-rate mortgage interest rate lock commitments | — | |||||||||||||||
Forward delivery commitments | — | — | ||||||||||||||
(In thousands) | Fair Value | Readily Available Market Prices (Level 1) | Observable Market Data (Level 2) | Company Determined Fair Value (Level 3) | ||||||||||||
June 30, 2020 | ||||||||||||||||
Non-financial assets: | ||||||||||||||||
OREO | $ | $ | — | $ | — | $ | ||||||||||
December 31, 2019 | ||||||||||||||||
Non-financial assets: | ||||||||||||||||
OREO | $ | $ | — | $ | — | $ | ||||||||||
(Dollars in thousands) | Fair Value | Valuation Methodology | Unobservable Input | Discount | ||||||
June 30, 2020 | ||||||||||
OREO | $ | Market approach appraisal of collateral | Management adjustment of appraisal | 18% | ||||||
Estimated selling cost | 13% | |||||||||
December 31, 2019 | ||||||||||
OREO | $ | Market approach appraisal of collateral | Management adjustment of appraisal | 18% | ||||||
Estimated selling cost | 13% | |||||||||
(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, 2020 | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
HTM securities | $ | $ | $ | $ | $ | |||||||||||||||
Commercial real estate loans(1) | $ | |||||||||||||||||||
Commercial loans(1)(2) | $ | |||||||||||||||||||
SBA PPP loans(1) | 218,690 | $ | 225,707 | — | — | 225,707 | ||||||||||||||
Residential real estate loans(1) | ||||||||||||||||||||
Home equity loans(1) | ||||||||||||||||||||
Consumer loans(1) | ||||||||||||||||||||
Servicing assets | ||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Time deposits | $ | $ | $ | $ | $ | |||||||||||||||
Short-term borrowings | ||||||||||||||||||||
Long-term borrowings | ||||||||||||||||||||
Subordinated debentures | ||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
HTM securities | $ | $ | $ | $ | $ | |||||||||||||||
Commercial real estate loans(1) | ||||||||||||||||||||
Commercial loans(1)(2) | ||||||||||||||||||||
Residential real estate loans(1) | ||||||||||||||||||||
Home equity loans(1) | ||||||||||||||||||||
Consumer loans(1) | ||||||||||||||||||||
Servicing assets | ||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Time deposits | $ | $ | $ | $ | $ | |||||||||||||||
Short-term borrowings | ||||||||||||||||||||
Long-term borrowings | ||||||||||||||||||||
Subordinated debentures | ||||||||||||||||||||
(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. |
• | the continued effectiveness of our Pandemic Work Group; |
• | the continuing ability of our employees to work remotely; |
• | our continuing ability to staff our branches and keep our branches open; |
• | the continuing strength of our capital and liquidity positions; |
• | our continued ability to access sources of contingent liquidity; |
• | the continuing strength of the asset quality in our lending portfolios; and |
• | the potential effectiveness of relief measures and programs for customers affected by COVID-19. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Net income, as presented | $ | 10,940 | $ | 13,204 | $ | 24,433 | $ | 27,477 | ||||||||
Add: amortization of core deposit intangible assets, net of tax(1) | 135 | 139 | 269 | 278 | ||||||||||||
Net income, adjusted for amortization of core deposit intangible assets | $ | 11,075 | $ | 13,343 | $ | 24,702 | $ | 27,755 | ||||||||
Average equity, as presented | $ | 499,449 | $ | 455,529 | $ | 489,811 | $ | 448,318 | ||||||||
Less: average goodwill and core deposit intangible assets | (97,965 | ) | (98,660 | ) | (98,054 | ) | (98,749 | ) | ||||||||
Average tangible equity | $ | 401,484 | $ | 356,869 | $ | 391,757 | $ | 349,569 | ||||||||
Return on average equity | 8.81 | % | 11.63 | % | 10.03 | % | 12.36 | % | ||||||||
Return on average tangible equity | 11.09 | % | 15.00 | % | 12.68 | % | 16.01 | % | ||||||||
(1) | Assumed a 21% tax rate. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Non-interest expense, as presented | $ | 23,509 | $ | 23,958 | $ | 48,070 | $ | 46,741 | ||||||||
Net interest income, as presented | $ | 34,539 | $ | 31,573 | $ | 66,365 | $ | 63,468 | ||||||||
Add: effect of tax-exempt income(1) | 295 | 248 | 574 | 491 | ||||||||||||
Non-interest income, as presented | 12,060 | 10,037 | 23,463 | 19,426 | ||||||||||||
Less: net gain on sale of securities | — | (27 | ) | — | (27 | ) | ||||||||||
Adjusted net interest income plus non-interest income | $ | 46,894 | $ | 41,831 | $ | 90,402 | $ | 83,358 | ||||||||
Ratio of non-interest expense to total revenues(2) | 50.45 | % | 57.58 | % | 53.51 | % | 56.39 | % | ||||||||
Efficiency ratio | 50.13 | % | 57.27 | % | 53.17 | % | 56.07 | % | ||||||||
(1) | Assumed a 21% tax rate. |
(2) | Revenue is the sum of net interest income and non-interest income. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Net interest income, as presented | $ | 34,539 | $ | 31,573 | $ | 66,365 | $ | 63,468 | ||||||||
Add: effect of tax-exempt income(1) | 295 | 248 | 574 | 491 | ||||||||||||
Net interest income (fully-taxable equivalent) | $ | 34,834 | $ | 31,821 | $ | 66,939 | $ | 63,959 | ||||||||
(1) | Assumed a 21% tax rate. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Net income, as presented | $ | 10,940 | $ | 13,204 | $ | 24,433 | $ | 27,477 | ||||||||
Add: provision for credit losses | 9,398 | 1,173 | 11,173 | 1,917 | ||||||||||||
Add: income tax expense | 2,752 | 3,275 | 6,152 | 6,759 | ||||||||||||
Pre-tax, pre-provision earnings | $ | 23,090 | $ | 17,652 | $ | 41,758 | $ | 36,153 | ||||||||
(In thousands, except number of shares, per share data and ratios) | June 30, 2020 | December 31, 2019 | ||||||
Tangible Book Value Per Share: | ||||||||
Shareholders’ equity, as presented | $ | 506,467 | $ | 473,415 | ||||
Less: goodwill and other intangible assets | (97,881 | ) | (98,222 | ) | ||||
Tangible shareholders’ equity | $ | 408,586 | $ | 375,193 | ||||
Shares outstanding at period end | 14,963,041 | 15,144,719 | ||||||
Book value per share | $ | 33.85 | $ | 31.26 | ||||
Tangible book value per share | $ | 27.31 | $ | 24.77 | ||||
Tangible Common Equity Ratio: | ||||||||
Total assets | $ | 4,959,016 | $ | 4,429,521 | ||||
Less: goodwill and other intangible assets | (97,881 | ) | (98,222 | ) | ||||
Tangible assets | $ | 4,861,135 | $ | 4,331,299 | ||||
Common equity ratio | 10.21 | % | 10.69 | % | ||||
Tangible common equity ratio | 8.41 | % | 8.66 | % | ||||
(In thousands) | June 30, 2020 | December 31, 2019 | ||||||
Total deposits | $ | 3,996,358 | $ | 3,537,743 | ||||
Less: certificates of deposit | (431,376 | ) | (521,752 | ) | ||||
Less: brokered deposits | (224,777 | ) | (191,005 | ) | ||||
Core deposits | $ | 3,340,205 | $ | 2,824,986 | ||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(In thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Total average deposits | $ | 3,676,000 | $ | 3,171,005 | $ | 3,515,798 | $ | 3,129,294 | ||||||||
Less: average certificates of deposit | (477,068 | ) | (516,972 | ) | (514,573 | ) | (480,244 | ) | ||||||||
Average core deposits | $ | 3,198,932 | $ | 2,654,033 | $ | 3,001,225 | $ | 2,649,050 | ||||||||
• | Developed procedures and policies to provide for the safety of our employees and customers, which included (i) devising and executing a plan that swiftly shifted over half of our employees to work remotely and (ii) transitioning our branch network to serve customers through our drive-up windows by eliminating lobby visits other than by appointment, and temporarily closing certain branches to maximize staffing resources and ensure contingency plans are in place. By the end of June 2020, we had re-opened all branches to the public with limited operating hours, and we continue to apply necessary safety and health protocols. |
• | Developed temporary loan payment deferral programs to assist customers impacted by the pandemic. Through June 30, 2020, we had modified 2,064 business and retail customer loans to provide temporary debt relief to customers impacted by the COVID-19 pandemic. As of June 30, 2020, 1,763 customer loans with total loan balances of $546.7 million were still under the terms of a loan modification. |
• | Oversaw the roll-out of the Small Business Administration's ("SBA") Paycheck Protection Program ("PPP") issued by the federal government as part of its stimulus plan to respond to the pandemic. Through June 30, 2020, the Company originated 2,919 PPP loans with total balances of $237.0 million, of which $217.0 million was issued to qualifying small businesses in Maine, representing approximately 10% of the PPP loans originated in Maine, according to SBA data. At June 30, 2020, outstanding PPP loan balances were $225.8 million. |
• | Diluted EPS for the three and six months ended June 30, 2020, was $0.73 and $1.62, respectively, compared to $0.85 and $1.76 for the same periods last year, respectively; |
• | Pre-tax, pre-provision earnings (non-GAAP) for the three and six months ended June 30, 2020, increased 31% and 16% over the same periods last year, respectively; |
• | Return on average assets for the three and six months ended June 30, 2020, was 0.90% and 1.05%, respectively, compared to 1.21% and 1.27% for the same periods last year, respectively; and |
• | Return on average equity for the three and six months ended June 30, 2020, was 8.81% and 10.03%, respectively, compared to 11.63% and 12.36% for the same periods last year, respectively. |
• | Non-performing assets were 0.23% of total assets at June 30, 2020, compared to 0.23% and 0.25% at March 31, 2020 and December 31, 2019, respectively. |
• | Past due loans were 0.19% of total loans at June 30, 2020, compared to 0.24% and 0.17% at March 31, 2020 and December 31, 2019, respectively. |
• | Net charge-offs (annualized) for the second quarter of 2020 were 0.05% of average loans, compared to 0.05% for the first quarter of 2020 and 0.09% for the fourth quarter of 2019. |
• | Interest income on a fully-taxable equivalent basis. Interest income on a fully-taxable equivalent basis for the second quarter decreased $3.2 million, or 8%, to $39.5 million, compared to the second quarter of 2019. Our interest-earning asset yield decreased 0.65% between periods to 3.53% for the second quarter of 2020, as loan yields decreased 0.71% between periods, which was reflective of the change in interest rate environment. The average 10-year U.S. Treasury interest rate for the second quarter of 2020 was 0.69%, compared to 2.34% for the second quarter of 2019. The growth in average interest-earning assets partially offset the decrease in asset yield between periods. Average loans grew $255.0 million, or 8%, between periods to $3.3 billion for the second quarter of 2020, and was primarily driven by SBA PPP loans funded in the second quarter of 2020 in response to the COVID-19 pandemic. For the second quarter of 2020, average SBA PPP loans were $178.1 million, for which we recognized $1.7 million of interest income. |
• | Interest expense. Interest expense for the second quarter of 2020 decreased $6.2 million, or 57%, to $4.6 million, compared to the second quarter of 2019. Cost of funds for the second quarter of 2020 decreased 0.69% between periods to 0.44% for the second quarter of 2020 driven by: (i) a decrease in deposit costs of 0.51% between periods to 0.35% for the second quarter of 2020; (ii) a decrease in borrowing costs of 1.36% between periods to 0.98% for the second quarter of 2020; and (iii) a shift in funding mix as average deposits grew $505.0 million, or 16%, between periods to $3.7 billion for the second quarter of 2020, while average borrowings decreased $112.0 million, or 16%, between periods to $580.3 million for the second quarter of 2020. The Federal Funds rate through the second quarter of 2020 was 0.25%, compared to 2.50% for the second quarter of 2019. |
• | Interest income on a fully-taxable equivalent basis. Interest income on a fully-taxable equivalent basis for the six months ended June 30, 2020 decreased $5.0 million, or 6%, to $80.0 million, compared to the same period of 2019. Our interest-earning asset yield decreased 0.48% between periods to 3.71% for the six months ended June 30, 2020, as loan yields decreased 0.55% between periods, which was reflective of the change in interest rate environment. The growth in average interest-earning assets was able to partially offset the decrease in asset yield between periods. Average loans grew $170.8 million, or 6%, between periods to $3.2 billion for the six months ended June 30, 2020, and was primarily driven by average SBA PPP loans of $89.0 million, for which we recognized $1.7 million of interest income, average residential mortgage growth of $61.6 million and commercial growth of $31.0 million. |
• | Interest expense. Interest expense for the six months ended June 30, 2020 decreased $8.0 million, or 38%, to $13.0 million, compared to the same period of 2019. Cost of funds for the six months ended June 30, 2020 decreased 0.46% between periods to 0.64% for the six months ended June 30, 2020 driven by: (i) a decrease in deposit costs of 0.30% between periods to 0.52% for the six months ended June 30, 2020; (ii) a decrease in borrowing costs of 0.46% between periods to 1.38% for the six months ended June 30, 2020; and (iii) a shift in funding mix as average deposits grew $386.5 million, or 12%, between periods to $3.5 billion for the six months ended June 30, 2020, while average borrowings decreased $148.5 million, or 21%, between periods to $571.6 million for the six months ended June 30, 2020. The Federal Funds rate was cut twice in the first quarter of 2020 to 0.25%. |
Quarterly Average Balance, Interest and Yield/Rate Analysis | ||||||||||||||||||||||
For The Three Months Ended | ||||||||||||||||||||||
June 30, 2020 | June 30, 2019 | |||||||||||||||||||||
(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 | $ | 168,221 | $ | 26 | 0.06 | % | $ | 59,901 | $ | 355 | 2.34 | % | ||||||||||
Investments - taxable | 836,885 | 5,203 | 2.49 | % | 839,714 | 5,366 | 2.56 | % | ||||||||||||||
Investments - nontaxable(1) | 124,101 | 1,049 | 3.38 | % | 90,087 | 790 | 3.51 | % | ||||||||||||||
Loans(2): | ||||||||||||||||||||||
Commercial real estate | 1,302,393 | 12,609 | 3.83 | % | 1,255,172 | 14,840 | 4.68 | % | ||||||||||||||
Commercial(1) | 404,545 | 3,868 | 3.78 | % | 389,166 | 4,639 | 4.72 | % | ||||||||||||||
SBA PPP | 178,119 | 1,706 | 3.79 | % | — | — | — | % | ||||||||||||||
HPFC | 17,659 | 414 | 9.28 | % | 29,472 | 584 | 7.83 | % | ||||||||||||||
Municipal(1) | 19,567 | 176 | 3.62 | % | 20,117 | 179 | 3.56 | % | ||||||||||||||
Residential real estate | 1,084,931 | 11,002 | 4.06 | % | 1,032,215 | 11,200 | 4.34 | % | ||||||||||||||
Consumer and home equity | 321,019 | 3,420 | 4.29 | % | 347,141 | 4,732 | 5.47 | % | ||||||||||||||
Total loans | 3,328,233 | 33,195 | 3.97 | % | 3,073,283 | 36,174 | 4.68 | % | ||||||||||||||
Total interest-earning assets | 4,457,440 | 39,473 | 3.53 | % | 4,062,985 | 42,685 | 4.18 | % | ||||||||||||||
Cash and due from banks | 49,777 | 40,835 | ||||||||||||||||||||
Other assets | 392,271 | 300,256 | ||||||||||||||||||||
Less: ALL | (27,823 | ) | (25,487 | ) | ||||||||||||||||||
Total assets | $ | 4,871,665 | $ | 4,378,589 | ||||||||||||||||||
Liabilities & Shareholders' Equity | ||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||
Non-interest checking | $ | 664,605 | $ | — | — | % | $ | 485,724 | $ | — | — | % | ||||||||||
Interest checking | 1,298,468 | 906 | 0.28 | % | 1,110,567 | 2,791 | 1.01 | % | ||||||||||||||
Savings | 518,803 | 76 | 0.06 | % | 476,104 | 104 | 0.09 | % | ||||||||||||||
Money market | 717,056 | 659 | 0.37 | % | 581,638 | 1,863 | 1.28 | % | ||||||||||||||
Certificates of deposit | 477,068 | 1,588 | 1.34 | % | 516,972 | 2,064 | 1.60 | % | ||||||||||||||
Total deposits | 3,676,000 | 3,229 | 0.35 | % | 3,171,005 | 6,822 | 0.86 | % | ||||||||||||||
Borrowings: | ||||||||||||||||||||||
Brokered deposits | 234,823 | 163 | 0.28 | % | 370,448 | 2,334 | 2.53 | % | ||||||||||||||
Customer repurchase agreements | 209,302 | 291 | 0.56 | % | 246,935 | 799 | 1.30 | % | ||||||||||||||
Subordinated debentures | 59,194 | 888 | 6.03 | % | 58,985 | 823 | 5.60 | % | ||||||||||||||
Other borrowings | 76,983 | 68 | 0.35 | % | 15,940 | 86 | 2.17 | % | ||||||||||||||
Total borrowings | 580,302 | 1,410 | 0.98 | % | 692,308 | 4,042 | 2.34 | % | ||||||||||||||
Total funding liabilities | 4,256,302 | 4,639 | 0.44 | % | 3,863,313 | 10,864 | 1.13 | % | ||||||||||||||
Other liabilities | 115,914 | 59,747 | ||||||||||||||||||||
Shareholders' equity | 499,449 | 455,529 | ||||||||||||||||||||
Total liabilities & shareholders' equity | $ | 4,871,665 | $ | 4,378,589 | ||||||||||||||||||
Net interest income (fully-taxable equivalent) | 34,834 | 31,821 | ||||||||||||||||||||
Less: fully-taxable equivalent adjustment | (295 | ) | (248 | ) | ||||||||||||||||||
Net interest income | $ | 34,539 | $ | 31,573 | ||||||||||||||||||
Net interest rate spread (fully-taxable equivalent) | 3.09 | % | 3.05 | % | ||||||||||||||||||
Net interest margin (fully-taxable equivalent) | 3.11 | % | 3.11 | % | ||||||||||||||||||
Net interest margin (fully-taxable equivalent), excluding fair value mark accretion and collection of previously charged-off acquired loans(3) | 3.07 | % | 3.07 | % | ||||||||||||||||||
(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, 2020 and 2019, totaling $403,000 and $439,000, respectively. |
Year-To-Date Average Balance, Interest and Yield/Rate Analysis | ||||||||||||||||||||||
For The Six Months Ended | ||||||||||||||||||||||
June 30, 2020 | June 30, 2019 | |||||||||||||||||||||
(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 | $ | 117,201 | $ | 233 | 0.39 | % | $ | 48,301 | $ | 552 | 2.27 | % | ||||||||||
Investments - taxable | 822,963 | 10,377 | 2.52 | % | 845,583 | 10,814 | 2.56 | % | ||||||||||||||
Investments - nontaxable(1) | 120,819 | 2,044 | 3.38 | % | 92,386 | 1,606 | 3.48 | % | ||||||||||||||
Loans(2): | ||||||||||||||||||||||
Commercial real estate | 1,287,965 | 26,255 | 4.03 | % | 1,268,264 | 30,006 | 4.71 | % | ||||||||||||||
Commercial(1) | 410,563 | 8,302 | 4.00 | % | 379,552 | 8,983 | 4.71 | % | ||||||||||||||
SBA PPP | 89,033 | 1,706 | 3.79 | % | — | — | — | % | ||||||||||||||
HPFC | 18,997 | 817 | 8.50 | % | 30,814 | 1,220 | 7.87 | % | ||||||||||||||
Municipal(1) | 18,279 | 331 | 3.64 | % | 17,738 | 315 | 3.58 | % | ||||||||||||||
Residential real estate | 1,081,884 | 22,294 | 4.12 | % | 1,020,316 | 22,038 | 4.32 | % | ||||||||||||||
Consumer and home equity | 327,895 | 7,606 | 4.66 | % | 347,097 | 9,403 | 5.46 | % | ||||||||||||||
Total loans | 3,234,616 | 67,311 | 4.14 | % | 3,063,781 | 71,965 | 4.69 | % | ||||||||||||||
Total interest-earning assets | 4,295,599 | 79,965 | 3.71 | % | 4,050,051 | 84,937 | 4.19 | % | ||||||||||||||
Cash and due from banks | 46,323 | 40,600 | ||||||||||||||||||||
Other assets | 364,544 | 293,114 | ||||||||||||||||||||
Less: ALL | (26,537 | ) | (25,135 | ) | ||||||||||||||||||
Total assets | $ | 4,679,929 | $ | 4,358,630 | ||||||||||||||||||
Liabilities & Shareholders' Equity | ||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||
Non-interest checking | $ | 597,053 | $ | — | — | % | $ | 488,040 | $ | — | — | % | ||||||||||
Interest checking | 1,222,626 | 2,893 | 0.48 | % | 1,098,003 | 5,411 | 0.99 | % | ||||||||||||||
Savings | 497,826 | 162 | 0.07 | % | 480,849 | 199 | 0.08 | % | ||||||||||||||
Money market | 683,720 | 2,245 | 0.66 | % | 582,158 | 3,603 | 1.25 | % | ||||||||||||||
Certificates of deposit | 514,573 | 3,796 | 1.48 | % | 480,244 | 3,529 | 1.48 | % | ||||||||||||||
Total deposits | 3,515,798 | 9,096 | 0.52 | % | 3,129,294 | 12,742 | 0.82 | % | ||||||||||||||
Borrowings: | ||||||||||||||||||||||
Brokered deposits | 221,454 | 958 | 0.87 | % | 388,045 | 4,837 | 2.51 | % | ||||||||||||||
Customer repurchase agreements | 222,827 | 925 | 0.83 | % | 242,740 | 1,528 | 1.27 | % | ||||||||||||||
Subordinated debentures | 59,157 | 1,775 | 6.03 | % | 58,996 | 1,540 | 5.26 | % | ||||||||||||||
Other borrowings | 68,120 | 272 | 0.80 | % | 30,237 | 331 | 2.21 | % | ||||||||||||||
Total borrowings | 571,558 | 3,930 | 1.38 | % | 720,018 | 8,236 | 2.31 | % | ||||||||||||||
Total funding liabilities | 4,087,356 | 13,026 | 0.64 | % | 3,849,312 | 20,978 | 1.10 | % | ||||||||||||||
Other liabilities | 102,762 | 61,000 | ||||||||||||||||||||
Shareholders' equity | 489,811 | 448,318 | ||||||||||||||||||||
Total liabilities & shareholders' equity | $ | 4,679,929 | $ | 4,358,630 | ||||||||||||||||||
Net interest income (fully-taxable equivalent) | 66,939 | 63,959 | ||||||||||||||||||||
Less: fully-taxable equivalent adjustment | (574 | ) | (491 | ) | ||||||||||||||||||
Net interest income | $ | 66,365 | $ | 63,468 | ||||||||||||||||||
Net interest rate spread (fully-taxable equivalent) | 3.07 | % | 3.09 | % | ||||||||||||||||||
Net interest margin (fully-taxable equivalent) | 3.10 | % | 3.14 | % | ||||||||||||||||||
Net interest margin (fully-taxable equivalent), excluding fair value mark accretion and collection of previously charged-off acquired loans(3) | 3.06 | % | 3.10 | % | ||||||||||||||||||
(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, 2020 and 2019, totaling $687,000 and $829,000, respectively. |
For The Three Months Ended June 30, 2020 vs. June 30, 2019 | For The Six Months Ended June 30, 2020 vs. June 30, 2019 | |||||||||||||||||||||||
Increase (Decrease) Due to: | Net Increase (Decrease) | Increase (Decrease) Due to: | Net Increase (Decrease) | |||||||||||||||||||||
(In thousands) | Volume | Rate | Volume | Rate | ||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Interest-bearing deposits in other banks and other interest-earning assets | $ | 634 | $ | (963 | ) | $ | (329 | ) | $ | 782 | $ | (1,101 | ) | $ | (319 | ) | ||||||||
Investments – taxable | (18 | ) | (145 | ) | (163 | ) | (290 | ) | (147 | ) | (437 | ) | ||||||||||||
Investments – nontaxable | 298 | (39 | ) | 259 | 495 | (57 | ) | 438 | ||||||||||||||||
Commercial real estate | 559 | (2,790 | ) | (2,231 | ) | 467 | (4,218 | ) | (3,751 | ) | ||||||||||||||
Commercial | 125 | (896 | ) | (771 | ) | 734 | (1,415 | ) | (681 | ) | ||||||||||||||
SBA PPP | 1,706 | — | 1,706 | 1,706 | — | 1,706 | ||||||||||||||||||
HPFC | (234 | ) | 64 | (170 | ) | (468 | ) | 65 | (403 | ) | ||||||||||||||
Municipal | (5 | ) | 2 | (3 | ) | 10 | 6 | 16 | ||||||||||||||||
Residential real estate | 572 | (770 | ) | (198 | ) | 1,330 | (1,074 | ) | 256 | |||||||||||||||
Consumer and home equity | (356 | ) | (956 | ) | (1,312 | ) | (520 | ) | (1,277 | ) | (1,797 | ) | ||||||||||||
Total interest income (fully-taxable equivalent) | 3,281 | (6,493 | ) | (3,212 | ) | 4,246 | (9,218 | ) | (4,972 | ) | ||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest checking | 473 | (2,358 | ) | (1,885 | ) | 612 | (3,130 | ) | (2,518 | ) | ||||||||||||||
Savings | 10 | (38 | ) | (28 | ) | 7 | (44 | ) | (37 | ) | ||||||||||||||
Money market | 432 | (1,636 | ) | (1,204 | ) | 630 | (1,988 | ) | (1,358 | ) | ||||||||||||||
Certificates of deposit | (159 | ) | (317 | ) | (476 | ) | 252 | 15 | 267 | |||||||||||||||
Brokered deposits | (855 | ) | (1,316 | ) | (2,171 | ) | (2,074 | ) | (1,805 | ) | (3,879 | ) | ||||||||||||
Customer repurchase agreements | (122 | ) | (386 | ) | (508 | ) | (125 | ) | (478 | ) | (603 | ) | ||||||||||||
Subordinated debentures | 3 | 62 | 65 | 4 | 231 | 235 | ||||||||||||||||||
Other borrowings | 330 | (348 | ) | (18 | ) | 415 | (474 | ) | (59 | ) | ||||||||||||||
Total interest expense | 112 | (6,337 | ) | (6,225 | ) | (279 | ) | (7,673 | ) | (7,952 | ) | |||||||||||||
Net interest income (fully-taxable equivalent) | $ | 3,169 | $ | (156 | ) | $ | 3,013 | $ | 4,525 | $ | (1,545 | ) | $ | 2,980 | ||||||||||
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | ||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | $ | % | 2020 | 2019 | $ | % | |||||||||||||||||||||
Mortgage banking income, net(1) | $ | 4,691 | $ | 1,742 | 2,949 | 169 | % | $ | 8,225 | $ | 2,994 | $ | 5,231 | 175 | % | ||||||||||||||
Debit card income | 2,391 | 2,281 | 110 | 5 | % | 4,532 | 4,291 | 241 | 6 | % | |||||||||||||||||||
Service charges on deposit accounts(2) | 1,337 | 2,209 | (872 | ) | (39 | )% | 3,349 | 4,232 | (883 | ) | (21 | )% | |||||||||||||||||
Income from fiduciary services | 1,603 | 1,545 | 58 | 4 | % | 3,105 | 2,937 | 168 | 6 | % | |||||||||||||||||||
Bank-owned life insurance | 614 | 603 | 11 | 2 | % | 1,303 | 1,197 | 106 | 9 | % | |||||||||||||||||||
Brokerage and insurance commissions | 622 | 732 | (110 | ) | (15 | )% | 1,279 | 1,317 | (38 | ) | (3 | )% | |||||||||||||||||
Customer loan swap fees(3) | 57 | 285 | (228 | ) | (80 | )% | 171 | 810 | (639 | ) | (79 | )% | |||||||||||||||||
Net gain on sale of securities | — | 27 | (27 | ) | (100 | )% | — | 27 | (27 | ) | (100 | )% | |||||||||||||||||
Other income | 745 | 613 | 132 | 22 | % | 1,499 | 1,621 | (122 | ) | (8 | )% | ||||||||||||||||||
Total non-interest income | $ | 12,060 | $ | 10,037 | $ | 2,023 | 20 | % | $ | 23,463 | $ | 19,426 | $ | 4,037 | 21 | % | |||||||||||||
Non-interest income as a percentage of total revenues | 26 | % | 24 | % | 26 | % | 23 | % | |||||||||||||||||||||
(3) | Customer loan swap fees: The decrease for the three and six months ended June 30, 2020, compared to the same periods of 2019, was driven by a change in appetite by the Company for this loan product and structure as interest rates have decreased significantly to historically low levels. |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | $ | % | 2020 | 2019 | $ | % | ||||||||||||||||||||||
Salaries and employee benefits(1) | $ | 13,627 | $ | 13,461 | $ | 166 | 1 | % | $ | 27,954 | $ | 26,439 | $ | 1,515 | 6 | % | ||||||||||||||
Furniture, equipment and data processing | 2,710 | 2,723 | (13 | ) | — | % | 5,500 | 5,403 | 97 | 2 | % | |||||||||||||||||||
Net occupancy costs | 1,997 | 1,639 | 358 | 22 | % | 4,000 | 3,553 | 447 | 13 | % | ||||||||||||||||||||
Consulting and professional fees | 1,181 | 974 | 207 | 21 | % | 1,964 | 1,787 | 177 | 10 | % | ||||||||||||||||||||
Debit card expense | 878 | 883 | (5 | ) | (1 | )% | 1,812 | 1,706 | 106 | 6 | % | |||||||||||||||||||
Regulatory assessments(2) | 299 | 437 | (138 | ) | (32 | )% | 461 | 909 | (448 | ) | (49 | )% | ||||||||||||||||||
Amortization of core deposit intangible assets | 171 | 176 | (5 | ) | (3 | )% | 341 | 352 | (11 | ) | (3 | )% | ||||||||||||||||||
Other real estate owned and collection costs, net(3) | 98 | 409 | (311 | ) | (76 | )% | 199 | 102 | 97 | 95 | % | |||||||||||||||||||
Other expenses(4) | 2,548 | 3,256 | (708 | ) | (22 | )% | 5,839 | 6,490 | (651 | ) | (10 | )% | ||||||||||||||||||
Total non-interest expense | $ | 23,509 | $ | 23,958 | $ | (449 | ) | (2 | )% | $ | 48,070 | $ | 46,741 | $ | 1,329 | 3 | % | |||||||||||||
GAAP efficiency ratio | 50.45 | % | 57.58 | % | 53.51 | % | 56.39 | % | ||||||||||||||||||||||
Non-GAAP efficiency ratio | 50.13 | % | 57.27 | % | 53.17 | % | 56.07 | % | ||||||||||||||||||||||
(1) | Salaries and employee benefits: The increase for the six months ended June 30, 2020, compared to the same period of 2019, was driven by annual merit cycle, an increase in wages of $219,000 in the second quarter of 2020 for those employees that continued to service our customers as an essential business during the COVID-19 pandemic, an increase in the number of employees and an 8% increase in health insurance-related costs. The increases were partially offset by lower performance-based incentive accruals for the six months ended June 30, 2020, compared to the same period of 2019. |
(2) | Regulatory assessments: The decrease for the three and six months ended June 30, 2020 compared to the same periods last year, was driven by the receipt of a Small Bank Assessment Credit from the FDIC, as the FDIC Deposit Insurance Fund ("DIF") reserve ratio exceeded its regulatory limit for the prior assessment periods. As of June 30, 2020, the Company has no remaining Small Bank Assessment Credits, and anticipates its regulatory assessment costs will revert back to historical levels. |
(4) | Other expenses: The decrease for the three and six months ended June 30, 2020, compared to the same periods of 2019, was driven by (i) lower employee-related costs, including hiring, training and travel, as employees transitioned to remote working in the second quarter of 2020; and (ii) marketing costs as programs were put on hold in the second quarter of 2020 as we prioritized our response to the COVID-19 pandemic, including the health and safety of our employee and customers. Second quarter 2020 employee-related costs were $392,000 lower than the second quarter of 2019, and $457,000 lower for the six months ended June 30, 2020, compared to the same period of 2019. Second quarter 2020 market costs were $210,000 lower than the second quarter of 2019, and $131,000 lower for the six months ended June 30, 2020, compared to the same period of 2019. |
• | The purchase of $206.5 million of investments in the first six months of 2020 with a weighted-average life of 5.0 years; |
• | A net increase in the fair value of the AFS debt securities portfolio of $33.2 million driven by the change in general market conditions, specifically a decrease in long-term interest rates at June 30, 2020, compared to December 31, 2019; |
• | Partially offset by paydowns and calls of $108.4 million. |
Change | |||||||||||||||
(Dollars in thousands) | June 30, 2020 | December 31, 2019 | ($) | (%) | |||||||||||
Commercial real estate | $ | 1,310,985 | $ | 1,243,397 | $ | 67,588 | 5 | % | |||||||
Commercial | 411,225 | 421,108 | (9,883 | ) | (2 | )% | |||||||||
SBA PPP | 218,803 | — | 218,803 | N.M. | |||||||||||
HPFC | 16,961 | 21,593 | (4,632 | ) | (21 | )% | |||||||||
Residential real estate | 1,054,333 | 1,070,374 | (16,041 | ) | (1 | )% | |||||||||
Consumer and home equity | 313,734 | 338,551 | (24,817 | ) | (7 | )% | |||||||||
Total loans | $ | 3,326,041 | $ | 3,095,023 | $ | 231,018 | 7 | % | |||||||
Commercial Loan Portfolio | $ | 1,957,974 | $ | 1,686,098 | $ | 271,876 | 16 | % | |||||||
Retail Loan Portfolio | $ | 1,368,067 | $ | 1,408,925 | $ | (40,858 | ) | (3 | )% | ||||||
Commercial Portfolio Mix | 59 | % | 54 | % | |||||||||||
Retail Portfolio Mix | 41 | % | 46 | % | |||||||||||
(Dollars in thousands) | June 30, 2020 | December 31, 2019 | ||||||
Non-accrual loans: | ||||||||
Commercial real estate | $ | 432 | $ | 1,122 | ||||
Commercial | 699 | 420 | ||||||
SBA PPP | — | — | ||||||
HPFC | 392 | 364 | ||||||
Residential real estate | 4,664 | 4,096 | ||||||
Consumer and home equity | 2,371 | 2,154 | ||||||
Total non-accrual loans | 8,558 | 8,156 | ||||||
Accruing loans past due 90 days | — | — | ||||||
Accruing TDRs not included above | 2,874 | 2,993 | ||||||
Total non-performing loans | 11,432 | 11,149 | ||||||
Other real estate owned | 118 | 94 | ||||||
Total non-performing assets | $ | 11,550 | $ | 11,243 | ||||
Non-accrual loans to total loans | 0.26 | % | 0.26 | % | ||||
Non-performing loans to total loans | 0.34 | % | 0.36 | % | ||||
ALL to non-performing loans | 310.87 | % | 225.77 | % | ||||
Non-performing assets to total assets | 0.23 | % | 0.25 | % | ||||
ALL to non-performing assets | 307.70 | % | 223.88 | % | ||||
(Dollars in thousands) | June 30, 2020 | December 31, 2019 | ||||||
Accruing loans 30-89 days past due: | ||||||||
Commercial real estate | $ | 1,625 | $ | 1,582 | ||||
Commercial | 95 | 548 | ||||||
SBA PPP | — | — | ||||||
HPFC | 128 | 243 | ||||||
Residential real estate | 4,016 | 2,227 | ||||||
Consumer and home equity | 388 | 750 | ||||||
Total | $ | 6,252 | $ | 5,350 | ||||
Accruing loans 30-89 days past due to total loans | 0.19 | % | 0.17 | % | ||||
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, 2019 | ||||||||||||||||||
(Dollars in thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
ALL at the beginning of the period | $ | 26,521 | $ | 25,201 | $ | 25,171 | $ | 24,712 | $ | 24,712 | ||||||||||
Provision for loan losses | 9,400 | 1,175 | 11,172 | 1,925 | 2,862 | |||||||||||||||
Charge-offs: | ||||||||||||||||||||
Commercial real estate | 21 | — | 71 | 65 | 300 | |||||||||||||||
Commercial | 420 | 217 | 673 | 453 | 1,167 | |||||||||||||||
SBA PPP | — | — | — | — | — | |||||||||||||||
HPFC | — | — | — | — | 71 | |||||||||||||||
Residential real estate | — | 14 | 96 | 25 | 462 | |||||||||||||||
Consumer and home equity | 43 | 40 | 134 | 64 | 713 | |||||||||||||||
Total charge-offs | 484 | 271 | 974 | 607 | 2,713 | |||||||||||||||
Recoveries: | ||||||||||||||||||||
Commercial real estate | 3 | 3 | 7 | 7 | 49 | |||||||||||||||
Commercial | 63 | 49 | 116 | 111 | 225 | |||||||||||||||
SBA PPP | — | — | — | — | — | |||||||||||||||
HPFC | — | — | — | — | — | |||||||||||||||
Residential real estate | 21 | 2 | 23 | 4 | 16 | |||||||||||||||
Consumer and home equity | 15 | 4 | 24 | 11 | 20 | |||||||||||||||
Total recoveries | 102 | 58 | 170 | 133 | 310 | |||||||||||||||
Net charge-offs | 382 | 213 | 804 | 474 | 2,403 | |||||||||||||||
ALL at the end of the period | $ | 35,539 | $ | 26,163 | $ | 35,539 | $ | 26,163 | $ | 25,171 | ||||||||||
Components of allowance for credit losses: | ||||||||||||||||||||
Allowance for loan losses | $ | 35,539 | $ | 26,163 | $ | 35,539 | $ | 26,163 | $ | 25,171 | ||||||||||
Liability for unfunded credit commitments | 22 | 14 | 22 | 14 | 21 | |||||||||||||||
Balance of allowance for credit losses at end of the period | $ | 35,561 | $ | 26,177 | $ | 35,561 | $ | 26,177 | $ | 25,192 | ||||||||||
Net charge-offs (annualized) to average loans | 0.05 | % | 0.03 | % | 0.05 | % | 0.03 | % | 0.08 | % | ||||||||||
Provision for loan losses (annualized) to average loans | 1.13 | % | 0.15 | % | 0.46 | % | 0.13 | % | 0.09 | % | ||||||||||
ALL to total loans | 1.07 | % | 0.84 | % | 1.07 | % | 0.84 | % | 0.81 | % | ||||||||||
ALL to net charge-offs (annualized) | 2,325.85 | % | 3,070.77 | % | 2,210.14 | % | 2,759.81 | % | 1,047.48 | % | ||||||||||
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, 2019 | ||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||
Financial Ratios | ||||||||||||||||||||
Average equity to average assets | 10.25 | % | 10.40 | % | 10.47 | % | 10.29 | % | 10.43 | % | ||||||||||
Common equity ratio | 10.21 | % | 10.52 | % | 10.21 | % | 10.52 | % | 10.69 | % | ||||||||||
Tangible common equity ratio(1) | 8.41 | % | 8.49 | % | 8.41 | % | 8.49 | % | 8.66 | % | ||||||||||
Dividend payout ratio | 45.21 | % | 35.29 | % | 40.74 | % | 34.09 | % | 33.24 | % | ||||||||||
Per Share Data | ||||||||||||||||||||
Book value per share | $ | 33.85 | $ | 30.26 | $ | 33.85 | $ | 30.26 | $ | 31.26 | ||||||||||
Tangible book value per share(1) | 27.31 | 23.88 | 27.31 | 23.88 | 24.77 | |||||||||||||||
Dividends declared per share | 0.33 | 0.30 | 0.66 | 0.60 | 1.23 | |||||||||||||||
(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 | $ | 687,915 | $ | 301,269 | $ | 63,020 | $ | 20,280 | $ | 303,346 | ||||||||||
Standby letters of credit | 5,046 | 2,305 | 1,719 | — | 1,022 | |||||||||||||||
Customer loan swaps - notional value | 801,868 | 2,238 | 73,912 | 75,309 | 650,409 | |||||||||||||||
Interest rate swap on loans - notional value | 100,000 | — | — | 100,000 | — | |||||||||||||||
Interest rate swaps on borrowings - notional value | 100,000 | — | 50,000 | — | 50,000 | |||||||||||||||
Fixed-rate mortgage interest rate lock commitments - notional value | 104,052 | 104,052 | — | — | — | |||||||||||||||
Junior subordinated debt interest rate swaps - notional value | 43,000 | — | 10,000 | — | 33,000 | |||||||||||||||
Forward delivery commitments - notional value | 35,909 | 35,909 | — | — | — | |||||||||||||||
Total | $ | 1,877,790 | $ | 445,773 | $ | 198,651 | $ | 195,589 | $ | 1,037,777 | ||||||||||
(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 | $ | 16,206 | $ | 1,381 | $ | 2,672 | $ | 2,334 | $ | 9,819 | ||||||||||
Finance leases | 7,888 | 305 | 618 | 628 | 6,337 | |||||||||||||||
FHLBB advances less than 90 days | 50,000 | 50,000 | — | — | — | |||||||||||||||
FHLBB advances - other | 25,000 | — | — | 25,000 | — | |||||||||||||||
Retail repurchase agreements | 195,998 | 195,998 | — | — | — | |||||||||||||||
Junior subordinated debentures | 44,331 | — | — | — | 44,331 | |||||||||||||||
Subordinated debentures | 14,900 | — | — | — | 14,900 | |||||||||||||||
Other contractual obligations | 1,386 | 1,386 | — | — | — | |||||||||||||||
Total | $ | 355,709 | $ | 249,070 | $ | 3,290 | $ | 27,962 | $ | 75,387 | ||||||||||
Estimated Changes In Net Interest Income | ||||||
Rate Change from Year 1 — Base | June 30, 2020 | June 30, 2019 | ||||
Year 1 | ||||||
+200 basis points | 0.28 | % | (0.49 | )% | ||
-100 basis points | 0.55 | % | (0.47 | )% | ||
Year 2 | ||||||
+200 basis points | 6.04 | % | 5.10 | % | ||
-100 basis points | (4.44 | )% | (2.81 | )% | ||
Exhibit No. | Definition | |
31.1* | ||
31.2* | ||
32.1** | ||
32.2** | ||
101* | iXBRL (Inline eXtensible Business Reporting Language). The following materials from Camden National Corporation’s Quarterly Report on Form 10-Q for the period ended June 30, 2020, formatted in iXBRL: (i) Consolidated Statements of Condition - June 30, 2020 and December 31, 2019; (ii) Consolidated Statements of Income - Three and Six Months Ended June 30, 2020 and 2019; (iii) Consolidated Statements of Comprehensive Income - Three and Six Months Ended June 30, 2020 and 2019; (iv) Consolidated Statements of Changes in Shareholders’ Equity - Three and Six Months Ended June 30, 2020 and 2019; (v) Consolidated Statements of Cash Flows - Six Months Ended June 30, 2020 and 2019; and (vi) Notes to the Unaudited Consolidated Financial Statements. | |
104* | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). | |
* | Filed herewith. | |
** | Furnished herewith. | |
+ | Management contract or a compensatory plan or arrangement. | |
CAMDEN NATIONAL CORPORATION | |||
(Registrant) | |||
/s/ Gregory A. Dufour | August 10, 2020 | ||
Gregory A. Dufour | Date | ||
President and Chief Executive Officer (Principal Executive Officer) | |||
/s/ Gregory A. White | August 10, 2020 | ||
Gregory A. White | Date | ||
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/ Gregory A. White | |
Gregory A. White | |
Chief Financial Officer and Principal Financial & Accounting Officer | |
/s/ Gregory A. Dufour | August 10, 2020 | |
Gregory A. Dufour | Date | |
President and Chief Executive Officer | ||
/s/ Gregory A. White | August 10, 2020 | |
Gregory A. White | Date | |
Chief Financial Officer and Principal Financial & Accounting Officer | ||
CONSOLIDATED STATEMENTS OF CONDITION (CURRENT PERIOD UNAUDITED) (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Available-for-sale Securities, Noncurrent | $ 1,010,325 | $ 913,978 |
| Debt Securities, Held-to-maturity, Fair Value | 1,388 | 1,359 |
| Loans held for sale | $ 35,909 | $ 11,915 |
| 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) | 14,963,041 | 15,144,719 |
| Common stock, outstanding (in shares) | 14,963,041 | 15,144,719 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Statement of Comprehensive Income [Abstract] | ||||
| Net Income | $ 10,940 | $ 13,204 | $ 24,433 | $ 27,477 |
| Other comprehensive income: | ||||
| Net change in unrealized gains on available-for-sale securities, net of tax | 7,130 | 10,839 | 26,060 | 21,738 |
| Net change in unrealized loss on cash flow hedging derivatives, net of tax | 52 | (1,046) | (702) | (1,877) |
| Net gain on postretirement plans, net of tax | 133 | 48 | 266 | 96 |
| Other comprehensive income | 7,315 | 9,841 | 25,624 | 19,957 |
| Comprehensive Income | $ 18,255 | $ 23,045 | $ 50,057 | $ 47,434 |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) |
12 Months Ended |
|---|---|
Dec. 31, 2018 | |
| Statement of Stockholders' Equity [Abstract] | |
| Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member |
BASIS OF PRESENTATION |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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, 2020 and December 31, 2019, the consolidated statements of income for the three and six months ended June 30, 2020 and 2019, the consolidated statements of comprehensive income for the three and six months ended June 30, 2020 and 2019, the consolidated statements of changes in shareholders' equity for the three and six months ended June 30, 2020 and 2019, and the consolidated statements of cash flows for the six months ended June 30, 2020 and 2019. 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, 2020, 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, 2019. 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 |
6 Months Ended |
|---|---|
Jun. 30, 2020 | |
| Accounting Standards Update and Change in Accounting Principle [Abstract] | |
| RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Accounting Standards Adopted in 2020 The Company adopted and updated its accounting policy for the following accounting standard(s) that became effective January 1, 2020 and were applied to the Company's three and six months ended June 30, 2020 interim consolidated financial statements: Goodwill. The Company adopted ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"), effective January 1, 2020. In accordance with ASU 2017-04, the Company will recognize an impairment of goodwill to the extent the carrying value of a reporting unit exceeds its fair value ("Step 1"). ASU 2017-04 eliminated the need to calculate the implied fair value of goodwill for a reporting unit and recognize an impairment to the extent the carrying value exceeded its implied fair value ("Step 2"). The Company adopted ASU 2017-04 prospectively. Upon adoption, ASU 2017-04 did not have a material impact on the Company's consolidated financial statements. Under the new accounting guidance the Company is more likely to record an impairment of goodwill, as there are now less requirements. In light of the COVID-19 pandemic and its impact on global, national and local markets and economy, in the second quarter of 2020, the Company determined that a triggering event had occurred and an interim goodwill impairment assessment was necessary. A quantitative assessment was performed using various valuation methodologies as of May 31, 2020. Through its assessment, the Company concluded that the indicated fair value of the reporting unit exceeded its book value, and, thus goodwill was not impaired as of May 31, 2020. At June 30, 2020, the Company considered whether there were any new events or information that would materially change its quantitative analysis performed as of May 31, 2020, and there were none. 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"). The FASB issued ASU 2016-13, commonly referred to as “CECL,” to require more timely recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. On March 27, 2020, the Coronavirus, Relief, and Economic Security Act ("CARES Act") was signed into law in response to the COVID-19 pandemic. Under Section 4014 of the CARES Act, the Company was permitted to delay its compliance with CECL until the earlier of (1) the date on which the national emergency concerning the COVID-19 pandemic that the President of the United States declared on March 15, 2020 terminates, or (2) December 31, 2020. The Company intends to delay the implementation of CECL until December 31, 2020, unless earlier implementation is required. The Company opted to delay its compliance with CECL so it could devote its resources to serve its customers impacted by the pandemic and support the roll-out of the various federal relief programs introduced by the CARES Act. When implemented, the Company will adopt CECL using a modified-retrospective approach as of January 1, 2020, which is the original effective date of the standard for the Company, and will record a cumulative-effect adjustment to retained earnings. The measurement of expected credit losses under CECL is applicable to financial assets measured at amortized cost, including loan receivables and HTM debt securities. CECL also applies to certain off-balance sheet credit exposures, such as loan commitments, standby letters of credit, financial guarantees and other similar investments. In addition, ASU 2016-13 made changes to the accounting for AFS debt securities, and a company will no longer immediately write-down a security for any impairment deemed to be a credit loss. Instead, a company will be required to present credit losses on AFS debt securities as an allowance on investments if it does not intend to sell the impaired security or it is not more-likely-than-not required to sell the impaired security before recovery of its amortized cost basis. The Company assembled a cross-functional project team that met regularly to address the additional data requirements, to determine the approach for implementation, and to identify new internal controls over enhanced accounting processes for estimating the allowance for credit losses (“ACL”). This included assessing the adequacy of existing loan and loss data, as well as assessing models for default and loss estimates. The Company engaged an independent third party to review its CECL model, methodologies and certain key assumptions, internal CECL policy, and internal controls framework. The Company has completed the development of its process for estimation of the allowance for loan losses and off-balance sheet exposures. To estimate the allowance for loan losses, the Company will primarily utilize a discounted cash flow model that contains additional assumptions to calculate credit losses over the estimated life of financial assets and will include the impact of forecasted economic conditions. To estimate the off-balance sheet credit exposures, which are primarily unfunded loan commitments, the Company will apply certain assumptions, including, but not limited to, a funding assumption and expected loss rate. The Company estimates that as of June 30, 2020, assuming adoption of CECL as of January 1, 2020, its ACL would have been $40.0 million to $44.0 million, or 1.20% to 1.32% of total loans at June 30, 2020, and as of December 31, 2019 its ACL would have been $27.0 million to $31.0 million, or 0.87% to 1.00% of total loans at December 31, 2019. Based on these ACL estimates, the Company's provision for credit losses would range from $9.0 million to $17.0 million for the six months ended June 30, 2020 under CECL, as compared to a provision for credit losses recorded under the incurred methodology of $11.2 million for the six months ended June 30, 2020. In March 2020, the regulatory banking agencies issued an interim final rule that allows banking institutions that implement CECL during 2020 to delay for two years the estimated impact of CECL on regulatory capital, followed by a three-year transition period. As an alternative, banking institutions may elect to forego the provided relief under the interim final rule, and may use the regulatory capital transition rule issued by the regulatory banking agencies in February 2019 that provided a three-year phase in option, effective upon adoption of CECL. The Company anticipates that it will elect to delay the capital impact of CECL in accordance with the interim final rule issued in March 2020 upon adoption of CECL.
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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:
The net unrealized gain on AFS investments reported within AOCI at June 30, 2020, was $29.3 million, net of a deferred tax liability of $8.0 million. The net unrealized gain on AFS investments reported within AOCI at December 31, 2019, was $3.3 million, net of a deferred tax liability of $890,000. Impaired AFS and HTM Investments: Quarterly, management 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 that was considered temporary, by length of time that an individual security in each category has been in a continuous loss position as of the dates indicated:
At June 30, 2020 and December 31, 2019, unrealized losses within the AFS and HTM investment portfolios were reflective of current interest rates in excess of the yield received on debt investments, and were not indicative of an overall change in credit quality or other factors. At June 30, 2020 and December 31, 2019, gross unrealized losses on the Company's AFS and HTM investments were 1% of their respective fair values. At June 30, 2020, 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 periods indicated below:
(1) The Company had not previously recorded any OTTI on these investments sold. AFS and HTM Investments Pledged: At June 30, 2020 and December 31, 2019, AFS and HTM investments with an amortized cost of $624.9 million and $709.0 million and estimated fair values of $650.2 million and $712.4 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, 2020, 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, 2020 and 2019, the Company recognized an unrealized loss of $0 and $159,000, 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, 2020 and 2019, the Company recognized an unrealized gain of $0 and $84,000, 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. |
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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 Company'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. The HPFC loan portfolio is an acquired loan portfolio. It 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. 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, 2020 and December 31, 2019, outstanding loans to certain officers, directors and their associated companies was less than 5% of the Company's shareholders' equity. 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, including consideration of the effect and impact of the COVID-19 pandemic; and (iv) a requirement by federal and state regulators to increase the provision for loan losses or recognize additional charge-offs. The Company has accounted for the estimated impact of the COVID-19 pandemic on its loan portfolio as of June 30, 2020 through adjustments to its economic qualitative factor ("Q-factor"), based on available information, as the Company has not yet experienced any significant COVID-19 credit deterioration through June 30, 2020. As discussed in Note 2, the Company did not adopt ASU 2016-04, commonly referred to as "CECL", during the six months ended June 30, 2020. The Company's ALL, as presented, has been determined in accordance with its policies and procedures described within its Annual Report on Form 10-K for the year ended December 31, 2019. As of and for the three and six months ended June 30, 2020, the Company has disclosed SBA PPP loans as its own loan segment given the credit risk profile differs greatly from the Company's commercial credit risk profile. There were no other significant changes to the Company's ALL methodology during the three or six months ended June 30, 2020. The Board of Directors monitors credit risk through: (i) 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 under the incurred loss accounting methodology for March 31, 2020 and periods prior to; and (ii) the Audit Committee, which, effective June 30, 2020 and for the three months ended June 30, 2020, has approval authority and oversight responsibility for ALL adequacy and methodology. The change in governance structure for the ALL methodology was done to align with the governance structure that will exist upon implementation of CECL at the earlier of (1) the date on which the national emergency concerning the COVID-19 pandemic that the President of the United States declared on March 15, 2020 terminates, or (2) December 31, 2020. 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, and maintain the integrity of the loan rating system. Effective for annual and interim periods beginning January 1, 2020, the adequacy of the ALL is overseen by the Management Provision Committee, which is an internal management committee comprised of various Company executives and senior managers across business lines, including Accounting and Finance, Credit Risk, Compliance, and Commercial and Retail Banking. The Management Provision Committee is further supported by other management-level committees to ensure the adequacy of the ALL under the incurred model, as well as the CECL methodology upon adoption. The Management Provision Committee supports the oversight efforts of the director-level committees discussed in the paragraph above 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 disaggregated its loans into portfolio segments, which include commercial real estate, commercial, SBA PPP, HPFC, residential real estate, home equity and consumer. 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: 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. SBA PPP. SBA PPP loans are unsecured, fully-guaranteed commercial loans backed by the SBA, issued to qualifying small businesses as part of federal stimulus issued in response to the COVID-19 pandemic. Loans made under the PPP have terms of two to five years and are to be used by the borrower to offset certain payroll and other operating costs, such as rent and utilities. The loan and accrued interest, or a portion thereof, is eligible for forgiveness by the SBA should the qualifying small business meet certain conditions. PPP loans were originated under the guidance of the SBA, which has been subject to change. 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. 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. 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. 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 identify credit concentrations effectively, 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. As of June 30, 2020, the Company's total exposure to the lessors of nonresidential buildings' industry was 13% of total loans and 32% 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, 2020. 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, generally at least six months. 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 is estimated to have been $87,000 and $115,000 for the three months ended June 30, 2020 and 2019, respectively. For the six months ended June 30, 2020 and 2019, the interest income that is estimated to have been recognized if loans on non-accrual status had been current in accordance with their original terms was $166,000 and $224,000, 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 for the dates indicated:
At June 30, 2020, the Company had performing and non-performing TDRs with a recorded investment balance of $2.9 million and $555,000, respectively. At December 31, 2019, the Company had performing and non-performing TDRs with a recorded investment balance of $3.0 million and $636,000, respectively. There were no loan modifications that qualify as TDRs that occurred for the three and six months ended June 30, 2020 and 2019. For the three and six months ended June 30, 2020 and 2019, no loans were modified as TDRs within the previous 12 months for which the borrower subsequently defaulted. COVID-19 Loan Modifications: In response to the COVID-19 pandemic, the Company worked with businesses and consumers to provide temporary debt payment relief that generally provided principal and/or interest payment deferrals. For loans modified due to the COVID-19 pandemic, under the CARES Act and regulatory guidance, the Company may apply the following accounting treatment in this order:
The Company's loans impacted by the COVID-19 pandemic and operating under temporary loan modifications, including both (i) the original COVID-related loan modification or (ii) a second COVID-related loan modification, upon expiration of the original COVID-related loan modification, were as follows for the dates indicated:
For the three and six months ended June 30, 2020, and through July 30, 2020, there were no COVID-related loan modifications that qualified as TDRs. 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, 2020 and 2019, the Company sold $197.8 million and $49.6 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 $4.6 million and $1.2 million, respectively. For the six months ended June 30, 2020 and 2019, the Company sold $267.0 million and $77.6 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 $6.1 million and $2.0 million. At June 30, 2020 and December 31, 2019, the Company had certain residential mortgage loans with a principal balance of $36.6 million and $11.9 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, 2020 and December 31, 2019, recorded an unrealized gain (loss) of $681,000 and ($61,000), respectively. For the three months ended June 30, 2020 and 2019, the net change in unrealized gains on loans held for sale recorded within mortgage banking income, net, on the Company's consolidated statements of income was $1.3 million and ($60,000), respectively. For the six months ended June 30, 2020 and 2019, the net change in unrealized gains on loans held for sale recorded within mortgage banking income, net, on the Company's consolidated statements of income was $742,000 and ($64,000). The Company has forward delivery commitments with a secondary market investor on each of its loans held for sale at June 30, 2020 and December 31, 2019. Refer to Note 8 for further discussion of the Company's forward delivery commitments. In-Process Foreclosure Proceedings: At June 30, 2020 and December 31, 2019, the Company had $1.4 million and $1.3 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 $1.3 billion and $1.4 billion at June 30, 2020 and December 31, 2019, respectively. Refer to Notes 3 and 6 of the consolidated financial statements for discussion of securities pledged as collateral.
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BORROWINGS |
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 for the dates indicated:
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REPURCHASE AGREEMENTS |
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Banking and Thrift, Other Disclosures [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 within interest on borrowings on the consolidated statements of income. The securities underlying the agreements are delivered to counterparties as collateral 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 dates indicated:
At June 30, 2020 and December 31, 2019, certain customers held CDs totaling $1.0 million, 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.
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COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES |
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Text Block] | COMMITMENTS AND CONTINGENCIES Commitments 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 Company's contractual off-balance sheet commitments for the dates indicated:
The Company’s commitments to extend credit from its lending activities 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 commitments 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. 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. Legal Contingencies In the normal course of business, the Company and its subsidiaries are subject to pending and threatened litigation, claims investigations and legal and administrative cases and proceedings. Although the Company is not able to predict the outcome of such actions, after reviewing pending and threatened actions with counsel, management believes that, based on the information currently available, 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. Assessments of litigation exposure are difficult because they involve inherently unpredictable factors including, but not limited to: whether the proceeding is in the early stages; whether damages are unspecified, unsupported, or uncertain; whether there is a potential for punitive or other pecuniary damages; whether the matter involves legal uncertainties, including novel issues of law; whether the matter involves multiple parties and/or jurisdictions; whether discovery has begun or is not complete; whether meaningful settlement discussions have commenced; and whether the lawsuit involves class allegations. 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. Assessments of class action litigation, which is generally more complex than other types of litigation, are particularly difficult, especially in the early stages of the proceeding when it is not known whether a class will be certified or how a potential class, if certified, will be defined. As a result, the Company may be unable to estimate reasonably possible losses with respect to every litigation matter it faces. As of June 30, 2020 and December 31, 2019, the Company did not have any material loss contingencies that were provided for and/or that are required to be disclosed.
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DERIVATIVES AND HEDGING |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DERIVATIVES AND HEDGING | DERIVATIVES AND HEDGING 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 associated with these derivative financial instruments through collateral, credit approvals and monitoring procedures. Derivative financial instruments are carried at fair value on the consolidated statements of condition. The accounting for changes in the fair value of a derivative instrument is dependent upon whether or not it has been designated as a hedge for accounting purposes, and, if so, the type of hedge it has been designated as. The changes in fair value of the Company's derivative instruments not designated as hedges are accounted for within the consolidated statements of income. Quarterly, in conjunction with financial reporting, each cash flow hedge is assessed for ineffectiveness. To the extent 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. Derivatives Not Designated as Hedges Customer Loan Swaps The Company 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 simultaneously entering into an arrangement with a counterparty to swap the fixed rate to a variable rate to manage its interest rate exposure effectively. As the interest rate swap agreements have substantially equivalent and offsetting terms, they do not materially change the Company's interest rate risk or present any material exposure to its consolidated statements of income. The following table presents the total positions, notional and fair value of the Company's customer loans swaps with each party for the dates indicated:
The Company 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 Company mitigates its institutional counterparty credit risk exposure by limiting the institutions for which it will enter into interest swap arrangements through an approved listing by its Board of Directors, as well as by posting cash or other financial assets from or to the counterparty. The Company has entered into a master netting arrangement with its counterparty and settles payments with the counterparty as necessary. The Company'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 aggregate fair value and the Company's credit rating. The Company may also receive cash collateral for contracts in a net asset position as requested. At June 30, 2020 and December 31, 2019 the Company posted $48.2 million and $18.4 million, respectively, of cash to the counterparty 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. 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 intends 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 was as follows for the dates indicated:
For the three months ended June 30, 2020 and 2019, the net unrealized (loss) 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 ($1.0) million and $223,000, respectively. For the six months ended June 30, 2020 and 2019, 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 $496,000 and $404,000, 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 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, 2020 and 2019, the net unrealized (loss) 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 ($1.0) million and $159,000, respectively. For the six months ended June 30, 2020 and 2019, the net unrealized (loss) 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 ($156,000) and $242,000, respectively. Derivatives Designated as Hedges Interest Rate Swap on Loans In 2019, the Company 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 its institutional counterparty and settles payments monthly on a net basis. The arrangement with the institutional counterparty requires it to post collateral for its interest rate swaps on loans and borrowings when they are in a net liability position based on their fair values. If the interest rate swaps are in a net asset position based on their fair values, the counterparty will post collateral to the Company as requested. At June 30, 2020, the institutional counterparty posted $4.0 million of cash as collateral on its interest rate swaps on loans and borrowings, which was presented within interest-bearing deposits in other banks as restricted cash with a matching liability within accrued interest and other liabilities on the consolidated statements of condition. At December 31, 2019, the counterparty posted $560,000 as collateral on its interest rate swap on loans. 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 dates indicated were as follows:
For the three and six months ended June 30, 2020, the Company did not record any ineffectiveness within the consolidated statements of income. Net payments received from the institutional counterparty for the six months ended June 30, 2020 were $299,000, and were classified as cash flows from operating activities within the consolidated statements of cash flows. Interest Rate Swaps on Borrowings In March 2020, the Company entered into two $50.0 million interest rate swap arrangements with an institutional counterparty to mitigate interest rate risk. The Company entered into a master netting arrangement with the institutional counterparty and settles payments on a net basis, monthly for the Federal Funds Effective Rate swap and quarterly for the 3-Month USD LIBOR swap. The arrangement with the institutional counterparty requires it to post collateral for its interest rate swaps on loans and borrowings when they are in a net liability position based on their fair values. If the interest rate swaps are in a net asset position based on their fair values, the counterparty will post collateral to the Company as requested. Collateral posted to the institutional counterparty or received is net settled with the interest rate swap on loans discussed above. The details of the Company's interest rate swaps on borrowings for the dates indicated were as follows:
For the three and six months ended June 30, 2020, the Company did not record any ineffectiveness within the consolidated statements of income. Net payments received from the institutional counterparty for the six months ended June 30, 2020 were $30,000 and were classified as cash flows from operating activities within the consolidated statements of cash flows. Junior Subordinated Debt Interest Rate Swaps The Company entered into five interest rate swap agreements with an institutional counterparty to manage interest rate risk associated with the Company's variable rate borrowings. The Company entered into a master netting arrangement with its institutional counterparty and settles payments 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 aggregate fair value and the Company’s credit rating. If the interest rate swaps are in a net asset position based on their aggregate fair value, the institutional counterparty will post collateral to the Company as requested. At June 30, 2020 and December 31, 2019, the Company posted $13.3 million and $8.8 million, respectively, of cash as collateral to the institutional counterparty, which 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, 2020 and 2019, 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, 2020 and 2019 were $537,000 and $318,000, respectively, and were classified as cash flows from operating activities in the Company's 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 does not offset the carrying value for derivative instruments or repurchase agreements on the consolidated statements of condition. The Company does 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 6 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:
(2) The Company manages its net exposure on its commercial customer loan swaps by obtaining collateral as part of the normal loan policy and underwriting practices. (3) Interest rate swap contracts were completed with the same dealer bank. The Company maintains a master netting arrangement and settles collateral requested or pledged on a net basis for all contracts.
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BALANCE SHEET OFFSETTING |
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| Offsetting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance Sheet Offsetting | DERIVATIVES AND HEDGING 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 associated with these derivative financial instruments through collateral, credit approvals and monitoring procedures. Derivative financial instruments are carried at fair value on the consolidated statements of condition. The accounting for changes in the fair value of a derivative instrument is dependent upon whether or not it has been designated as a hedge for accounting purposes, and, if so, the type of hedge it has been designated as. The changes in fair value of the Company's derivative instruments not designated as hedges are accounted for within the consolidated statements of income. Quarterly, in conjunction with financial reporting, each cash flow hedge is assessed for ineffectiveness. To the extent 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. Derivatives Not Designated as Hedges Customer Loan Swaps The Company 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 simultaneously entering into an arrangement with a counterparty to swap the fixed rate to a variable rate to manage its interest rate exposure effectively. As the interest rate swap agreements have substantially equivalent and offsetting terms, they do not materially change the Company's interest rate risk or present any material exposure to its consolidated statements of income. The following table presents the total positions, notional and fair value of the Company's customer loans swaps with each party for the dates indicated:
The Company 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 Company mitigates its institutional counterparty credit risk exposure by limiting the institutions for which it will enter into interest swap arrangements through an approved listing by its Board of Directors, as well as by posting cash or other financial assets from or to the counterparty. The Company has entered into a master netting arrangement with its counterparty and settles payments with the counterparty as necessary. The Company'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 aggregate fair value and the Company's credit rating. The Company may also receive cash collateral for contracts in a net asset position as requested. At June 30, 2020 and December 31, 2019 the Company posted $48.2 million and $18.4 million, respectively, of cash to the counterparty 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. 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 intends 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 was as follows for the dates indicated:
For the three months ended June 30, 2020 and 2019, the net unrealized (loss) 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 ($1.0) million and $223,000, respectively. For the six months ended June 30, 2020 and 2019, 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 $496,000 and $404,000, 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 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, 2020 and 2019, the net unrealized (loss) 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 ($1.0) million and $159,000, respectively. For the six months ended June 30, 2020 and 2019, the net unrealized (loss) 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 ($156,000) and $242,000, respectively. Derivatives Designated as Hedges Interest Rate Swap on Loans In 2019, the Company 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 its institutional counterparty and settles payments monthly on a net basis. The arrangement with the institutional counterparty requires it to post collateral for its interest rate swaps on loans and borrowings when they are in a net liability position based on their fair values. If the interest rate swaps are in a net asset position based on their fair values, the counterparty will post collateral to the Company as requested. At June 30, 2020, the institutional counterparty posted $4.0 million of cash as collateral on its interest rate swaps on loans and borrowings, which was presented within interest-bearing deposits in other banks as restricted cash with a matching liability within accrued interest and other liabilities on the consolidated statements of condition. At December 31, 2019, the counterparty posted $560,000 as collateral on its interest rate swap on loans. 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 dates indicated were as follows:
For the three and six months ended June 30, 2020, the Company did not record any ineffectiveness within the consolidated statements of income. Net payments received from the institutional counterparty for the six months ended June 30, 2020 were $299,000, and were classified as cash flows from operating activities within the consolidated statements of cash flows. Interest Rate Swaps on Borrowings In March 2020, the Company entered into two $50.0 million interest rate swap arrangements with an institutional counterparty to mitigate interest rate risk. The Company entered into a master netting arrangement with the institutional counterparty and settles payments on a net basis, monthly for the Federal Funds Effective Rate swap and quarterly for the 3-Month USD LIBOR swap. The arrangement with the institutional counterparty requires it to post collateral for its interest rate swaps on loans and borrowings when they are in a net liability position based on their fair values. If the interest rate swaps are in a net asset position based on their fair values, the counterparty will post collateral to the Company as requested. Collateral posted to the institutional counterparty or received is net settled with the interest rate swap on loans discussed above. The details of the Company's interest rate swaps on borrowings for the dates indicated were as follows:
For the three and six months ended June 30, 2020, the Company did not record any ineffectiveness within the consolidated statements of income. Net payments received from the institutional counterparty for the six months ended June 30, 2020 were $30,000 and were classified as cash flows from operating activities within the consolidated statements of cash flows. Junior Subordinated Debt Interest Rate Swaps The Company entered into five interest rate swap agreements with an institutional counterparty to manage interest rate risk associated with the Company's variable rate borrowings. The Company entered into a master netting arrangement with its institutional counterparty and settles payments 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 aggregate fair value and the Company’s credit rating. If the interest rate swaps are in a net asset position based on their aggregate fair value, the institutional counterparty will post collateral to the Company as requested. At June 30, 2020 and December 31, 2019, the Company posted $13.3 million and $8.8 million, respectively, of cash as collateral to the institutional counterparty, which 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, 2020 and 2019, 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, 2020 and 2019 were $537,000 and $318,000, respectively, and were classified as cash flows from operating activities in the Company's 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 does not offset the carrying value for derivative instruments or repurchase agreements on the consolidated statements of condition. The Company does 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 6 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:
(2) The Company manages its net exposure on its commercial customer loan swaps by obtaining collateral as part of the normal loan policy and underwriting practices. (3) Interest rate swap contracts were completed with the same dealer bank. The Company maintains a master netting arrangement and settles collateral requested or pledged on a net basis for all contracts.
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REGULATORY CAPITAL REQUIREMENTS |
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| Broker-Dealer, Net Capital Requirement, SEC Regulation [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 1 capital, and common equity Tier 1 capital to risk-weighted assets, and of Tier 1 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 1 risk-based capital ratio of 6.0%, a minimum common equity Tier 1 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 1 equity in an amount above the minimum risk-based capital requirements for "adequately capitalized" institutions equal to 2.5% of total risk-weighted assets, resulting in a requirement for the Company and the Bank effectively to maintain common equity Tier 1, Tier 1 and total capital ratios of 7.0%, 8.5% and 10.5%, respectively. The Company and the Bank must maintain the capital conservation buffer to avoid restrictions on the ability to pay dividends, pay discretionary bonuses and to engage in share repurchases based on the amount of the shortfall and the institution's "eligible retained income" (that is, four quarter trailing net income, net of distributions and tax effects not reflected in net income). The Company and Bank's risk-based capital ratios exceeded regulatory guidelines, including the capital conservation buffer, at June 30, 2020 and December 31, 2019, and the Bank's capital ratios met the requirements for it to be considered "well capitalized" under prompt correct action provisions for each period. There were no changes to the Company or Bank's capital ratios that occurred subsequent to June 30, 2020, 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 applicable regulation, to include, subject to certain limits, each within its calculation of risk-based capital. At June 30, 2020 and December 31, 2019, $15.0 million of subordinated debentures were included as Tier 2 capital and were included in the calculation of the Company's total risk-based capital, and, at June 30, 2020 and December 31, 2019, $43.0 million of the junior subordinated debentures were included in Tier 1 and total risk-based capital for the Company. The Company's $15.0 million of subordinated debentures are subject to phase-out of 20% annually after its five year anniversary, and 20% a year thereafter until it is fully phases out. 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.
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OTHER COMPREHENSIVE INCOME (LOSS) OTHER COMPREHENSIVE INCOME (LOSS) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Comprehensive Income (Loss) Note [Text Block] | OTHER COMPREHENSIVE INCOME (LOSS) The following tables present a reconciliation of the changes in the components of other comprehensive income and loss for the periods indicated, including the amount of tax (expense) benefit allocated to each component:
The following table presents the changes in each component of AOCI for the periods indicated:
(1) All amounts are net of tax.
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REVENUE FROM CONTRACTS WITH CUSTOMERS REVENUE FROM CONTRACS WITH CUSTOMERS |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Text Block] | REVENUE FROM CONTRACTS WITH CUSTOMERS A portion of the Company's non-interest income is derived from contracts with customers, and, as such, the revenue recognized depicts the transfer of promised goods or services to its customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company considers the terms of the contract and all relevant facts and circumstances when applying this guidance. The Company has disaggregated its revenue from contracts with customers into categories based on the nature of the revenue. The categorization of revenues from contracts with customers that are within the scope of ASC 606 closely aligns with the presentation of revenue categories presented within non-interest income on the consolidated statements of income. The following table presents the revenue streams within the scope of ASC 606 for the periods indicated:
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EMPLOYEE BENEFIT PLANS |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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, 2020 and 2019, were as follows: Supplemental Executive Retirement Plan:
Other Postretirement Benefit Plan:
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EPS |
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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:
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.
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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 on an individual loan basis using quoted secondary market prices 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 equity securities in bank stock 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 interest rate swaps is 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, 2020 and December 31, 2019, 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 loan 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 is 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, 2020. 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, 2020 and December 31, 2019, 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, goodwill and core deposit 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 Core Deposit 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. In the second quarter of 2020, the Company determined that a triggering event had occurred and an interim goodwill impairment assessment was necessary. A quantitative assessment was performed using various valuation methodologies as of May 31, 2020. Through its assessment, the Company concluded that the indicated fair value of the reporting unit exceeded its book value, and, thus goodwill was not impaired as of May 31, 2020. At June 30, 2020, the Company considered whether there were any new events or information that would materially change its quantitative analysis performed as of May 31, 2020, and there were none. Refer to Note 2 for further discussion. The Company's core deposit intangible assets represent the estimated value of acquired customer relationships and are amortized 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. There were no events or changes in circumstances for the six months ended June 30, 2020, 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.
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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 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:
The following table summarizes the amortized cost and estimated fair values of AFS and HTM investments, 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 that was considered temporary, by length of time that an individual security in each category has been in a continuous loss position as of the dates indicated:
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| Schedule of Sale of AFS Investments | The following table details the Company's sales of AFS investments for the periods indicated below:
(1) The Company had not previously recorded any OTTI on these investments sold. |
[1] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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, 2020, 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) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Loans and Leases Receivable Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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:
(1) The change in net unamortized loan (fees) origination costs from December 31, 2019 to June 30, 2020, was primarily driven by origination fees capitalized upon origination of SBA PPP loans during the second quarter of 2020. As of June 30, 2020, unamortized loan fees on originated SBA PPP loans were $7.0 million.
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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:
(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, 2020 and 2019, and December 31, 2019, the reserve for unfunded commitments was $22,000, $14,000 and $21,000, respectively.
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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 for the dates indicated:
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| Temporary Loan Modifications | The Company's loans impacted by the COVID-19 pandemic and operating under temporary loan modifications, including both (i) the original COVID-related loan modification or (ii) a second COVID-related loan modification, upon expiration of the original COVID-related loan modification, were as follows for the dates 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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BORROWINGS (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 for the dates indicated:
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REPURCHASE AGREEMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Banking and Thrift, Other Disclosures [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 dates indicated:
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COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule Of Contractual And Notional Amounts Of Financial Instruments Table [Table Text Block] | The following is a summary of the Company's contractual off-balance sheet commitments for the dates indicated:
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DERIVATIVES AND HEDGING (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Derivative Financial Instruments | The details of the junior subordinated debt interest rate swaps for the dates indicated were as follows:
The Company's forward delivery commitments on loans held for sale for the dates indicated were as follows:
The following table presents the total positions, notional and fair value of the Company's customer loans swaps with each party for the dates indicated:
The details of the interest rate swap for the dates indicated were as follows:
The details of the Company's interest rate swaps on borrowings 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, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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:
(2) The Company manages its net exposure on its commercial customer loan swaps by obtaining collateral as part of the normal loan policy and underwriting practices. (3) Interest rate swap contracts were completed with the same dealer bank. The Company maintains a master netting arrangement and settles collateral requested or pledged on a net basis for all contracts.
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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:
(2) The Company manages its net exposure on its commercial customer loan swaps by obtaining collateral as part of the normal loan policy and underwriting practices. (3) Interest rate swap contracts were completed with the same dealer bank. The Company maintains a master netting arrangement and settles collateral requested or pledged on a net basis for all contracts.
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REGULATORY CAPITAL REQUIREMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Broker-Dealer, Net Capital Requirement, SEC Regulation [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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OTHER COMPREHENSIVE INCOME (LOSS) OTHER COMPREHENSIVE INCOME (LOSS) (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of of Comprehensive Income (Loss) | The following tables present a reconciliation of the changes in the components of other comprehensive income and loss for the periods indicated, including the amount of tax (expense) benefit allocated to each component:
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| Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in each component of AOCI for the periods indicated:
(1) All amounts are net of tax.
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REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Disaggregation of Revenue [Table Text Block] | The following table presents the revenue streams within the scope of ASC 606 for the periods indicated:
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EMPLOYEE BENEFIT PLANS (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Components of Net Period Benefit Cost | The components of net periodic benefit cost for the periods ended June 30, 2020 and 2019, were as follows: Supplemental Executive Retirement Plan:
Other Postretirement Benefit Plan:
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EPS (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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:
(3) Represents stock-based awards not included in the computation of potential common shares for purposes of calculating diluted EPS as the exercise prices were greater than the average market price of the Company's common stock, and, therefore, are considered anti-dilutive.
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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:
(2) Includes the HPFC loan portfolio.
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RECENT ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
Mar. 31, 2020 |
Mar. 31, 2019 |
Dec. 31, 2018 |
|
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
| Allowance for credit losses | $ 35,539 | $ 26,163 | $ 35,539 | $ 26,163 | $ 25,171 | $ 26,521 | $ 25,201 | $ 24,712 |
| Provision for credit losses | 9,398 | $ 1,173 | 11,173 | $ 1,917 | 2,861 | |||
| Minimum | ASU 2016-13 | ||||||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
| Allowance for credit losses | $ 40,000 | $ 40,000 | $ 27,000 | |||||
| ACL Percentage of Total Loans | 1.20% | 1.20% | 0.87% | |||||
| Provision for credit losses | $ 9,000 | |||||||
| Maximum | ASU 2016-13 | ||||||||
| New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
| Allowance for credit losses | $ 44,000 | $ 44,000 | $ 31,000 | |||||
| ACL Percentage of Total Loans | 1.32% | 1.32% | 1.00% | |||||
| Provision for credit losses | $ 17,000 | |||||||
INVESTMENTS (Narrative) (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
|---|---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
| Schedule of Investments [Line Items] | ||||||
| Net unrealized gain on available-for-sale debt securities, net of tax | $ 29,310 | $ 3,912 | $ 29,310 | $ 3,912 | $ 3,250 | $ (17,826) |
| Deferred tax assets, unrealized losses on available for sale securities | $ 8,000 | $ 8,000 | 890 | |||
| Unrealized Loss as a Percent of Fair Value | 1.00% | 1.00% | ||||
| Security pledged as collateral, amortized cost | $ 624,900 | $ 624,900 | 709,000 | |||
| Security pledged as collateral, fair value | 650,200 | 650,200 | $ 712,400 | |||
| Unrealized loss, change in fair value of bank stock equity securities | $ 0 | $ 159 | $ 0 | $ 84 | ||
INVESTMENTS (Schedule of Sale of AFS Investments) (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Debt Securities, Available-for-sale [Line Items] | ||||
| Proceeds from sales of AFS investments | $ 0 | $ 45,826,000 | $ 0 | $ 45,826,000 |
| Gross realized gains | 0 | 371,000 | 0 | 371,000 |
| Gross realized losses | 0 | (344,000) | 0 | (344,000) |
| OTTI, AFS investments sold | $ 0 | $ 0 | $ 0 | $ 0 |
INVESTMENTS (Schedule of Amortized Cost and Fair Value of Other Investments) (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
|---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
|
| Investments, Debt and Equity Securities [Abstract] | ||
| Equity securities - bank stock, Amortized Cost | $ 544 | $ 544 |
| Equity securities - bank stock, Unrealized Gains | 1,130 | 1,130 |
| Equity securities - bank stock, Unrealized Losses | 0 | 0 |
| Equity securities - bank stock, Fair Value | 1,674 | 1,674 |
| FHLBB (carried at cost) | 8,079 | 6,601 |
| FRB (carried at cost) | 5,374 | 5,374 |
| Other Investments, Amortized Cost | 13,997 | 12,519 |
| Other Investments, Unrealized Gain | 1,130 | 1,130 |
| Other Investments, Unrealized Loss | 0 | 0 |
| Other Investments, Fair Value | $ 15,127 | $ 13,649 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Unamortized fair value mark and costs) (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
||
|---|---|---|---|---|
| Loans and Leases Receivable Disclosure [Line Items] | ||||
| Net Unamortized fair Value Mark (Discount) on Loans | $ (1,970) | $ (2,593) | ||
| Loans and Leases Receivable, Deferred Income | [1] | (4,045) | 3,111 | |
| Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | (6,015) | $ 518 | ||
| SBA PPP Portfolio Segment | ||||
| Loans and Leases Receivable Disclosure [Line Items] | ||||
| Loans and Leases Receivable, Deferred Income | [1] | $ 7,000 | ||
| ||||
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, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
| Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
| Reserve for unfunded commitments | $ 22,000 | $ 14,000 | $ 22,000 | $ 14,000 | $ 21,000 |
| Activity in ALL: | |||||
| Beginning balance | 26,521,000 | 25,201,000 | 25,171,000 | 24,712,000 | 24,712,000 |
| Loans charged off | (484,000) | (271,000) | (974,000) | (607,000) | (2,713,000) |
| Recoveries | 102,000 | 58,000 | 170,000 | 133,000 | 310,000 |
| Provision (credit)(1) | 9,400,000 | 1,175,000 | 11,172,000 | 1,925,000 | 2,862,000 |
| Ending balance | 35,539,000 | 26,163,000 | 35,539,000 | 26,163,000 | 25,171,000 |
| Ending Balance: Individually evaluated for impairment | 462,000 | 1,183,000 | 462,000 | 1,183,000 | 463,000 |
| Ending Balance: Collectively evaluated for impairment | 35,077,000 | 24,980,000 | 35,077,000 | 24,980,000 | 24,708,000 |
| Ending Balance: Individually evaluated for impairment | 4,163,000 | 6,443,000 | 4,163,000 | 6,443,000 | 4,478,000 |
| Ending Balance: Collectively evaluated for impairment | 3,321,878,000 | 3,093,881,000 | 3,321,878,000 | 3,093,881,000 | 3,090,545,000 |
| Total Loans Outstanding | 3,326,041,000 | 3,100,324,000 | 3,326,041,000 | 3,100,324,000 | 3,095,023,000 |
| Residential Real Estate | |||||
| Activity in ALL: | |||||
| Beginning balance | 5,897,000 | 6,153,000 | 5,842,000 | 6,071,000 | 6,071,000 |
| Loans charged off | 0 | (14,000) | (96,000) | (25,000) | (462,000) |
| Recoveries | 21,000 | 2,000 | 23,000 | 4,000 | 16,000 |
| Provision (credit)(1) | 2,685,000 | 108,000 | 2,834,000 | 199,000 | 217,000 |
| Ending balance | 8,603,000 | 6,249,000 | 8,603,000 | 6,249,000 | 5,842,000 |
| Ending Balance: Individually evaluated for impairment | 338,000 | 524,000 | 338,000 | 524,000 | 364,000 |
| Ending Balance: Collectively evaluated for impairment | 8,265,000 | 5,725,000 | 8,265,000 | 5,725,000 | 5,478,000 |
| Ending Balance: Individually evaluated for impairment | 3,153,000 | 4,472,000 | 3,153,000 | 4,472,000 | 3,384,000 |
| Ending Balance: Collectively evaluated for impairment | 1,051,180,000 | 1,031,320,000 | 1,051,180,000 | 1,031,320,000 | 1,066,990,000 |
| Total Loans Outstanding | 1,054,333,000 | 1,035,792,000 | 1,054,333,000 | 1,035,792,000 | 1,070,374,000 |
| Commercial Real Estate | |||||
| Activity in ALL: | |||||
| Beginning balance | 13,374,000 | 11,838,000 | 12,414,000 | 11,654,000 | 11,654,000 |
| Loans charged off | (21,000) | 0 | (71,000) | (65,000) | (300,000) |
| Recoveries | 3,000 | 3,000 | 7,000 | 7,000 | 49,000 |
| Provision (credit)(1) | 5,030,000 | 311,000 | 6,036,000 | 556,000 | 1,011,000 |
| Ending balance | 18,386,000 | 12,152,000 | 18,386,000 | 12,152,000 | 12,414,000 |
| Ending Balance: Individually evaluated for impairment | 35,000 | 27,000 | 35,000 | 27,000 | 30,000 |
| Ending Balance: Collectively evaluated for impairment | 18,351,000 | 12,125,000 | 18,351,000 | 12,125,000 | 12,384,000 |
| Ending Balance: Individually evaluated for impairment | 461,000 | 409,000 | 461,000 | 409,000 | 402,000 |
| Ending Balance: Collectively evaluated for impairment | 1,310,524,000 | 1,260,230,000 | 1,310,524,000 | 1,260,230,000 | 1,242,995,000 |
| Total Loans Outstanding | 1,310,985,000 | 1,260,639,000 | 1,310,985,000 | 1,260,639,000 | 1,243,397,000 |
| Commercial | |||||
| Activity in ALL: | |||||
| Beginning balance | 4,114,000 | 3,616,000 | 3,769,000 | 3,620,000 | 3,620,000 |
| Loans charged off | (420,000) | (217,000) | (673,000) | (453,000) | (1,167,000) |
| Recoveries | 63,000 | 49,000 | 116,000 | 111,000 | 225,000 |
| Provision (credit)(1) | 922,000 | 659,000 | 1,467,000 | 829,000 | 1,091,000 |
| Ending balance | 4,679,000 | 4,107,000 | 4,679,000 | 4,107,000 | 3,769,000 |
| Ending Balance: Individually evaluated for impairment | 0 | 322,000 | 0 | 322,000 | |
| Ending Balance: Collectively evaluated for impairment | 4,679,000 | 3,785,000 | 4,679,000 | 3,785,000 | 3,769,000 |
| Ending Balance: Individually evaluated for impairment | 179,000 | 675,000 | 179,000 | 675,000 | 319,000 |
| Ending Balance: Collectively evaluated for impairment | 411,046,000 | 428,001,000 | 411,046,000 | 428,001,000 | 420,789,000 |
| Total Loans Outstanding | 411,225,000 | 428,676,000 | 411,225,000 | 428,676,000 | 421,108,000 |
| SBA PPP Portfolio Segment | |||||
| Activity in ALL: | |||||
| Beginning balance | 0 | 0 | 0 | 0 | 0 |
| Loans charged off | 0 | 0 | 0 | 0 | |
| Recoveries | 0 | 0 | 0 | 0 | |
| Provision (credit)(1) | 113,000 | 0 | 113,000 | 0 | |
| Ending balance | 113,000 | 0 | 113,000 | 0 | 0 |
| Ending Balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
| Ending Balance: Collectively evaluated for impairment | 113,000 | 0 | 113,000 | 0 | |
| Ending Balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
| Ending Balance: Collectively evaluated for impairment | 218,803,000 | 0 | 218,803,000 | 0 | |
| Total Loans Outstanding | 218,803,000 | 0 | 218,803,000 | 0 | 0 |
| Home Equity | |||||
| Activity in ALL: | |||||
| Beginning balance | 2,480,000 | 3,027,000 | 2,423,000 | 2,796,000 | 2,796,000 |
| Loans charged off | (17,000) | (34,000) | (51,000) | (44,000) | (412,000) |
| Recoveries | 0 | 0 | 4,000 | 0 | 1,000 |
| Provision (credit)(1) | 621,000 | (1,000) | 708,000 | 240,000 | 38,000 |
| Ending balance | 3,084,000 | 2,992,000 | 3,084,000 | 2,992,000 | 2,423,000 |
| Ending Balance: Individually evaluated for impairment | 89,000 | 310,000 | 89,000 | 310,000 | 69,000 |
| Ending Balance: Collectively evaluated for impairment | 2,995,000 | 2,682,000 | 2,995,000 | 2,682,000 | 2,354,000 |
| Ending Balance: Individually evaluated for impairment | 370,000 | 887,000 | 370,000 | 887,000 | 373,000 |
| Ending Balance: Collectively evaluated for impairment | 290,445,000 | 322,649,000 | 290,445,000 | 322,649,000 | 312,406,000 |
| Total Loans Outstanding | 290,815,000 | 323,536,000 | 290,815,000 | 323,536,000 | 312,779,000 |
| Consumer | |||||
| Activity in ALL: | |||||
| Beginning balance | 473,000 | 259,000 | 507,000 | 234,000 | 234,000 |
| Loans charged off | (26,000) | (6,000) | (83,000) | (20,000) | (301,000) |
| Recoveries | 15,000 | 4,000 | 20,000 | 11,000 | 19,000 |
| Provision (credit)(1) | 42,000 | 126,000 | 60,000 | 158,000 | 555,000 |
| Ending balance | 504,000 | 383,000 | 504,000 | 383,000 | 507,000 |
| Ending Balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
| Ending Balance: Collectively evaluated for impairment | 504,000 | 383,000 | 504,000 | 383,000 | 507,000 |
| Ending Balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
| Ending Balance: Collectively evaluated for impairment | 22,919,000 | 23,665,000 | 22,919,000 | 23,665,000 | 25,772,000 |
| Total Loans Outstanding | 22,919,000 | 23,665,000 | 22,919,000 | 23,665,000 | 25,772,000 |
| HPFC Portfolio Segment | |||||
| Activity in ALL: | |||||
| Beginning balance | 183,000 | 308,000 | 216,000 | 337,000 | 337,000 |
| Loans charged off | 0 | 0 | 0 | 0 | (71,000) |
| Recoveries | 0 | 0 | 0 | 0 | |
| Provision (credit)(1) | (13,000) | (28,000) | (46,000) | (57,000) | (50,000) |
| Ending balance | 170,000 | 280,000 | 170,000 | 280,000 | 216,000 |
| Ending Balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
| Ending Balance: Collectively evaluated for impairment | 170,000 | 280,000 | 170,000 | 280,000 | 216,000 |
| Ending Balance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | |
| Ending Balance: Collectively evaluated for impairment | 16,961,000 | 28,016,000 | 16,961,000 | 28,016,000 | 21,593,000 |
| Total Loans Outstanding | $ 16,961,000 | $ 28,016,000 | $ 16,961,000 | $ 28,016,000 | $ 21,593,000 |
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, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
| LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract] | |||||
| Provision (credit)(1) | $ 9,400 | $ 1,175 | $ 11,172 | $ 1,925 | $ 2,862 |
| Change in reserve for unfunded commitments | (2) | (2) | 1 | (8) | (1) |
| Provision for credit losses | $ 9,398 | $ 1,173 | $ 11,173 | $ 1,917 | $ 2,861 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Troubled Debt Restructuring Loans) (Details) $ in Thousands |
Jun. 30, 2020
USD ($)
loan
|
Dec. 31, 2019
USD ($)
loan
|
|---|---|---|
| Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
| Number of Contracts | loan | 26 | 27 |
| Recorded Investment | $ 3,431 | $ 3,629 |
| Specific Reserve | $ 462 | $ 463 |
| Residential Real Estate | ||
| Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
| Number of Contracts | loan | 21 | 22 |
| Recorded Investment | $ 2,683 | $ 2,869 |
| Specific Reserve | $ 338 | $ 364 |
| Commercial Real Estate | ||
| Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
| Number of Contracts | loan | 2 | 2 |
| Recorded Investment | $ 335 | $ 338 |
| Specific Reserve | $ 35 | $ 30 |
| Commercial | ||
| Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
| Number of Contracts | loan | 2 | 2 |
| Recorded Investment | $ 114 | $ 123 |
| Specific Reserve | $ 0 | $ 0 |
| Consumer | ||
| Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
| Number of Contracts | loan | 1 | 1 |
| Recorded Investment | $ 299 | $ 299 |
| Specific Reserve | $ 89 | $ 69 |
LOANS AND ALLOWANCE FOR LOAN LOSSES (Troubled Debt Restructuring by Portfolio Segment) (Details) - loan |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
| Number of Contracts | 0 | 0 | 0 | 0 |
BORROWINGS (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Debt Instrument [Line Items] | ||
| Repurchase Agreements | $ 195,998 | $ 237,984 |
| Total short-term borrowings | 245,998 | 268,809 |
| Long-term Federal Home Loan Bank Advances | 25,000 | 10,000 |
| Total long-term borrowings | 25,000 | 10,000 |
| Short-term Debt [Member] | ||
| Debt Instrument [Line Items] | ||
| Repurchase Agreements | 195,998 | 237,984 |
| FHLBB advances less than 90 days | 50,000 | 25,000 |
| FHLBB and Correspondent Bank Overnight Borrowings | $ 0 | $ 5,825 |
REPURCHASE AGREEMENTS (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
||||
|---|---|---|---|---|---|---|
| Assets Sold under Agreements to Repurchase [Line Items] | ||||||
| Repurchase Agreements | $ 195,998 | $ 237,984 | ||||
| June 30, 2020 | ||||||
| Assets Sold under Agreements to Repurchase [Line Items] | ||||||
| Repurchase Agreements | [1],[2] | 195,998 | 237,984 | |||
| Obligations of states and political subdivisions | June 30, 2020 | ||||||
| Assets Sold under Agreements to Repurchase [Line Items] | ||||||
| Repurchase Agreements | [1],[2] | 1,912 | 1,361 | |||
| Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | June 30, 2020 | ||||||
| Assets Sold under Agreements to Repurchase [Line Items] | ||||||
| Repurchase Agreements | 112,017 | 117,654 | ||||
| Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | June 30, 2020 | ||||||
| Assets Sold under Agreements to Repurchase [Line Items] | ||||||
| Repurchase Agreements | [1],[2] | 82,069 | 118,969 | |||
| Collateral Pledged [Member] | June 30, 2020 | ||||||
| Assets Sold under Agreements to Repurchase [Line Items] | ||||||
| Certificates of Deposit, at Carrying Value | $ 1,000 | $ 1,000 | ||||
| ||||||
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) |
Jun. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Legal Proceedings [Line Items] | ||
| Contractual Amounts Of Financial Instrument | $ 692,961,000 | $ 739,860,000 |
| Loss Contingency Accrual | $ 0 | $ 0 |
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES (Summary of Contractual and Notional Amounts of FInancial Instruments) (Details) - USD ($) $ in Thousands |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financial Instruments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule Of Contractual And Notional Amounts Of Financial Instruments Table [Table Text Block] | The following is a summary of the Company's contractual off-balance sheet commitments for the dates indicated:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contractual Amounts Of Financial Instrument | $ 692,961 | $ 739,860 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments to Extend Credit [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financial Instruments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contractual Amounts Of Financial Instrument | 687,915 | 734,649 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Standby Letters of Credit [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financial Instruments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contractual Amounts Of Financial Instrument | $ 5,046 | $ 5,211 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES AND HEDGING (Narrative) (Details) |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|---|
|
Jun. 30, 2020
USD ($)
derivative
|
Jun. 30, 2019
USD ($)
|
Jun. 30, 2020
USD ($)
derivative
|
Jun. 30, 2019
USD ($)
|
Dec. 31, 2019
USD ($)
derivative
|
|
| Other Commitments [Line Items] | |||||
| Loss Contingency Accrual | $ 0 | $ 0 | $ 0 | ||
| Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | 771,000 | ||||
| Customer Loan Swaps | |||||
| Other Commitments [Line Items] | |||||
| Cash held as collateral | 48,200,000 | 48,200,000 | 18,400,000 | ||
| Interest Rate Lock Commitments | |||||
| Other Commitments [Line Items] | |||||
| Unrealized Gain (Loss) on Derivatives | (1,000,000.0) | $ 223,000 | 496,000 | $ 404,000 | |
| Notional Amount | 104,052,000 | 104,052,000 | 29,606,000 | ||
| Interest Rate Swap On Loans [Member] | |||||
| Other Commitments [Line Items] | |||||
| Cash held as collateral | 4,000,000.0 | 4,000,000.0 | 560,000 | ||
| Derivative Instrument Payment Of Interest Rate Swaps Designated As Cash Flow Hedges | 299,000 | ||||
| Notional Amount | 100,000,000 | 100,000,000 | $ 100,000,000 | ||
| Loss on Cash Flow Hedge Ineffectiveness | 0 | 0 | |||
| Interest Rate Swap On Borrowings | |||||
| Other Commitments [Line Items] | |||||
| Derivative Instrument Payment Of Interest Rate Swaps Designated As Cash Flow Hedges | 30,000 | ||||
| Notional Amount | 100,000,000 | 100,000,000 | |||
| Derivative, Number of Interest Rate Swap Agreements | derivative | 2 | ||||
| Interest rate swaps | |||||
| Other Commitments [Line Items] | |||||
| Cash held as collateral | 13,300,000 | 13,300,000 | $ 8,800,000 | ||
| Derivative Instrument Payment Of Interest Rate Swaps Designated As Cash Flow Hedges | 537,000 | 318,000 | |||
| Notional Amount | 43,000,000 | 43,000,000 | 43,000,000 | ||
| Loss on Cash Flow Hedge Ineffectiveness | 0 | 0 | 0 | 0 | |
| Forward Contracts [Member] | |||||
| Other Commitments [Line Items] | |||||
| Unrealized Gain (Loss) on Derivatives | (1,000,000.0) | $ 159,000 | (156,000) | $ 242,000 | |
| Notional Amount | 35,909,000 | 35,909,000 | 11,915,000 | ||
| Federal home loan bank 30-day | Interest rate swaps | |||||
| Other Commitments [Line Items] | |||||
| Notional Amount | $ 400,934,000 | $ 400,934,000 | $ 366,351,000 | ||
| Derivative, Number of Instruments Held | derivative | 83 | 83 | 75 | ||
| Commercial and Industrial Sector [Member] | Interest rate swaps | |||||
| Other Commitments [Line Items] | |||||
| Notional Amount | $ 400,934,000 | $ 400,934,000 | $ 411,594,000 | ||
| Derivative, Number of Instruments Held | derivative | 83 | 83 | 85 | ||
| Contract, Two | Interest Rate Swap On Borrowings | |||||
| Other Commitments [Line Items] | |||||
| Notional Amount | $ 50,000,000 | $ 50,000,000 | |||
| Contract, Two | Interest rate swaps | |||||
| Other Commitments [Line Items] | |||||
| Notional Amount | 10,000,000 | 10,000,000 | $ 10,000,000 | ||
| Contract One | Interest Rate Swap On Borrowings | |||||
| Other Commitments [Line Items] | |||||
| Notional Amount | 50,000,000 | 50,000,000 | |||
| Contract One | Interest rate swaps | |||||
| Other Commitments [Line Items] | |||||
| Notional Amount | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | ||
DERIVATIVES AND HEDGING (Schedule of customer loan swaps) (Details) - Interest rate swaps $ in Thousands |
Jun. 30, 2020
USD ($)
derivative
|
Dec. 31, 2019
USD ($)
derivative
|
|---|---|---|
| Derivative [Line Items] | ||
| Notional Amount | $ 43,000 | $ 43,000 |
| Fair Value | $ (12,584) | $ (8,187) |
| Federal home loan bank 30-day | ||
| Derivative [Line Items] | ||
| Derivative, Number of Instruments Held | derivative | 83 | 75 |
| Notional Amount | $ 400,934 | $ 366,351 |
| Fair Value | $ 47,338 | $ 17,756 |
| Commercial and Industrial Sector [Member] | ||
| Derivative [Line Items] | ||
| Derivative, Number of Instruments Held | derivative | 83 | 85 |
| Notional Amount | $ 400,934 | $ 411,594 |
| Fair Value | $ (47,338) | $ (17,242) |
| Loans [Member] | ||
| Derivative [Line Items] | ||
| Derivative, Number of Instruments Held | derivative | 166 | 170 |
| Notional Amount | $ 801,868 | $ 823,188 |
| Fair Value | $ 0 | $ 0 |
| Other Liabilities [Member] | Federal home loan bank 30-day | ||
| Derivative [Line Items] | ||
| Derivative, Number of Instruments Held | derivative | 0 | 10 |
| Notional Amount | $ 0 | $ 45,243 |
| Fair Value | $ 0 | $ (514) |
DERIVATIVES AND HEDGING (Schedule of interest rate lock commitments) (Details) - Interest Rate Lock Commitments - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Other Commitments [Line Items] | ||
| Notional Amount | $ 104,052 | $ 29,606 |
| Derivative, Fair Value, Net | 958 | 462 |
| Other Assets [Member] | ||
| Other Commitments [Line Items] | ||
| Notional Amount | 69,914 | 27,087 |
| Derivative Asset, Fair Value, Gross Asset | 1,287 | 480 |
| Other Liabilities [Member] | ||
| Other Commitments [Line Items] | ||
| Notional Amount | 34,138 | 2,519 |
| Derivative Liability, Fair Value, Gross Liability | $ (329) | $ (18) |
DERIVATIVES AND HEDGING (Schedule of forward loan sale commitments) (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
| Forward Contracts [Member] | |||||
| Other Commitments [Line Items] | |||||
| Notional Amount | $ 35,909,000 | $ 35,909,000 | $ 11,915,000 | ||
| Unrealized Gain (Loss) on Derivatives | (1,000,000.0) | $ 159,000 | (156,000) | $ 242,000 | |
| Derivative Asset, Fair Value, Gross Asset | 359,000 | 359,000 | 312,000 | ||
| Derivative Liability, Fair Value, Gross Liability | (218,000) | (218,000) | (15,000) | ||
| Derivative, Fair Value, Net | 141,000 | 141,000 | 297,000 | ||
| Forward Contracts [Member] | Other Assets [Member] | |||||
| Other Commitments [Line Items] | |||||
| Notional Amount | 19,649,000 | 19,649,000 | 10,846,000 | ||
| Forward Contracts [Member] | Other Liabilities [Member] | |||||
| Other Commitments [Line Items] | |||||
| Notional Amount | 16,260,000 | 16,260,000 | 1,069,000 | ||
| Interest Rate Lock Commitments [Member] | |||||
| Other Commitments [Line Items] | |||||
| Notional Amount | 104,052,000 | 104,052,000 | 29,606,000 | ||
| Unrealized Gain (Loss) on Derivatives | (1,000,000.0) | $ 223,000 | 496,000 | $ 404,000 | |
| Derivative, Fair Value, Net | 958,000 | 958,000 | 462,000 | ||
| Interest Rate Lock Commitments [Member] | Other Assets [Member] | |||||
| Other Commitments [Line Items] | |||||
| Notional Amount | 69,914,000 | 69,914,000 | 27,087,000 | ||
| Derivative Asset, Fair Value, Gross Asset | 1,287,000 | 1,287,000 | 480,000 | ||
| Interest Rate Lock Commitments [Member] | Other Liabilities [Member] | |||||
| Other Commitments [Line Items] | |||||
| Notional Amount | 34,138,000 | 34,138,000 | 2,519,000 | ||
| Derivative Liability, Fair Value, Gross Liability | $ (329,000) | $ (329,000) | $ (18,000) | ||
DERIVATIVES AND HEDGING DERIVATIVES AND HEDGING (Schedule of Interest Rate Swap on Loans) (Details) - Interest Rate Swap On Loans [Member] - USD ($) $ in Thousands |
6 Months Ended | |
|---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
|
| Derivative [Line Items] | ||
| Trade Date | Jun. 12, 2019 | |
| Maturity Date | Jun. 10, 2024 | |
| Fixed Rate Paid | 1.693% | |
| Notional Amount | $ 100,000 | $ 100,000 |
| Derivative, Fair Value, Net | $ 6,109 | $ 483 |
DERIVATIVES AND HEDGING DERIVATIVES AND HEDGING (Schedule of Interest Rate Swap on Borrowings) (Details) - Interest Rate Swap On Borrowings $ in Thousands |
6 Months Ended |
|---|---|
|
Jun. 30, 2020
USD ($)
| |
| Derivative [Line Items] | |
| Notional Amount | $ 100,000 |
| Derivative, Fair Value, Net | $ (2,123) |
| Contract Two | |
| Derivative [Line Items] | |
| Trade Date | Mar. 26, 2020 |
| Maturity Date | Mar. 26, 2030 |
| Fixed Rate Paid | 0.857% |
| Notional Amount | $ 50,000 |
| Derivative, Fair Value, Net | $ (1,171) |
| Contract One | |
| Derivative [Line Items] | |
| Trade Date | Mar. 02, 2020 |
| Maturity Date | Mar. 01, 2023 |
| Fixed Rate Paid | 0.705% |
| Notional Amount | $ 50,000 |
| Derivative, Fair Value, Net | $ (952) |
DERIVATIVES AND HEDGING (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, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
| Interest rate swaps | |||||
| Derivative [Line Items] | |||||
| Notional Amount | $ 43,000,000 | $ 43,000,000 | $ 43,000,000 | ||
| Fair Value | (12,584,000) | (12,584,000) | (8,187,000) | ||
| Loss on Cash Flow Hedge Ineffectiveness | $ 0 | $ 0 | $ 0 | $ 0 | |
| Interest rate swaps | Contract One | |||||
| Derivative [Line Items] | |||||
| Federal Home Loan Bank, Advances, Maturity Period, Variable Rate | 3 months | ||||
| Trade Date | Mar. 18, 2009 | ||||
| Maturity Date | Jun. 30, 2021 | ||||
| Fixed Rate Paid | 5.09% | 5.09% | |||
| Notional Amount | $ 10,000,000 | $ 10,000,000 | 10,000,000 | ||
| Fair Value | $ (346,000) | $ (346,000) | (299,000) | ||
| Interest rate swaps | Contract Two | |||||
| Derivative [Line Items] | |||||
| Federal Home Loan Bank, Advances, Maturity Period, Variable Rate | 3 months | ||||
| Trade Date | Jul. 08, 2009 | ||||
| Maturity Date | Jun. 30, 2029 | ||||
| Fixed Rate Paid | 5.84% | 5.84% | |||
| Notional Amount | $ 10,000,000 | $ 10,000,000 | 10,000,000 | ||
| Fair Value | $ (3,497,000) | $ (3,497,000) | (2,318,000) | ||
| Interest rate swaps | Contract, Three | |||||
| Derivative [Line Items] | |||||
| Federal Home Loan Bank, Advances, Maturity Period, Variable Rate | 3 months | ||||
| Trade Date | May 06, 2010 | ||||
| Maturity Date | Jun. 30, 2030 | ||||
| Fixed Rate Paid | 5.71% | 5.71% | |||
| Notional Amount | $ 10,000,000 | $ 10,000,000 | 10,000,000 | ||
| Fair Value | $ (3,693,000) | $ (3,693,000) | (2,384,000) | ||
| Interest rate swaps | Contract, Four | |||||
| Derivative [Line Items] | |||||
| Federal Home Loan Bank, Advances, Maturity Period, Variable Rate | 3 months | ||||
| Trade Date | Mar. 14, 2011 | ||||
| Maturity Date | Mar. 30, 2031 | ||||
| Fixed Rate Paid | 4.35% | 4.35% | |||
| Notional Amount | $ 5,000,000 | $ 5,000,000 | 5,000,000 | ||
| Fair Value | $ (1,988,000) | $ (1,988,000) | (1,279,000) | ||
| Interest rate swaps | Contract, Five | |||||
| Derivative [Line Items] | |||||
| Federal Home Loan Bank, Advances, Maturity Period, Variable Rate | 3 months | ||||
| Trade Date | May 04, 2011 | ||||
| Maturity Date | Jul. 07, 2031 | ||||
| Fixed Rate Paid | 4.14% | 4.14% | |||
| Notional Amount | $ 8,000,000 | $ 8,000,000 | 8,000,000 | ||
| Fair Value | $ (3,060,000) | $ (3,060,000) | (1,907,000) | ||
| Forward-Starting Interest Rate Swap | Contract One | |||||
| Derivative [Line Items] | |||||
| Federal Home Loan Bank, Advances, Maturity Period, Variable Rate | 1 month | ||||
| Forward-Starting Interest Rate Swap | Contract Two | |||||
| Derivative [Line Items] | |||||
| Federal Home Loan Bank, Advances, Maturity Period, Variable Rate | 1 month | ||||
| Interest Rate Swap On Loans [Member] | |||||
| Derivative [Line Items] | |||||
| Trade Date | Jun. 12, 2019 | ||||
| Maturity Date | Jun. 10, 2024 | ||||
| Fixed Rate Paid | 1.693% | 1.693% | |||
| Notional Amount | $ 100,000,000 | $ 100,000,000 | 100,000,000 | ||
| Fair Value | 6,109,000 | 6,109,000 | $ 483,000 | ||
| Loss on Cash Flow Hedge Ineffectiveness | $ 0 | $ 0 | |||
DERIVATIVES AND HEDGING (Schedule of Derivatives Effect on OCI and Current Earnings) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
| Net reclassification adjustment for effective portion of cash flow hedges included in interest expense, gross | $ 567 | $ 320 | ||
| Effective portion of unrealized losses recognized within OCI during the period, net of tax | $ (11) | $ (1,203) | (912) | (2,128) |
| Interest Expense, Borrowings | ||||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
| Net reclassification adjustment for effective portion of cash flow hedges included in interest expense, gross | 327 | 201 | ||
| Interest Income, Interest and Fees on Loans | ||||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
| Net reclassification adjustment for effective portion of cash flow hedges included in interest expense, gross | $ (247) | $ 0 | $ (299) | $ 0 |
BALANCE SHEET OFFSETTING (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
|||||
|---|---|---|---|---|---|---|---|
| Offsetting Assets [Line Items] | |||||||
| Derivative Asset, Not Offset, Policy Election Deduction | [1],[2] | $ 0 | $ 0 | ||||
| Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Gross | 53,447 | 18,239 | |||||
| Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Liability | 0 | 0 | |||||
| Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed | 53,447 | 18,239 | |||||
| Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Not Offset, Policy Election Deduction | [1] | 0 | 0 | ||||
| Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Collateral, Obligation to Return Cash | [1] | (6,109) | (483) | ||||
| Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed, Amount Offset Against Collateral | 47,338 | 17,756 | |||||
| Derivative Liability, Not Offset, Policy Election Deduction | [1] | 0 | 0 | [2] | |||
| Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Gross | 62,045 | 25,943 | |||||
| Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Asset | 0 | 0 | |||||
| Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned | 62,045 | 25,943 | |||||
| Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Not Offset, Policy Election Deduction | [1] | 0 | 0 | ||||
| Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Collateral, Right to Reclaim Cash | [1] | 62,045 | 25,429 | ||||
| Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Amount Offset Against Collateral | 0 | 514 | |||||
| Securities Sold under Agreements to Repurchase, Gross | 195,998 | 237,984 | |||||
| Securities Sold under Agreements to Repurchase, Asset | 0 | 0 | |||||
| Securities Sold under Agreements to Repurchase | 195,998 | 237,984 | |||||
| Derivative Liability, Securities Sold under Agreements to Repurchase, Securities Loaned, Collateral, Right to Reclaim Securities | [1] | 195,998 | 237,984 | ||||
| Securities Sold under Agreements to Repurchase, Collateral, Right to Reclaim Cash | [1] | 0 | 0 | ||||
| Securities Sold under Agreements to Repurchase, Amount Offset Against Collateral | 0 | 0 | |||||
| Customer Loan Swap Dealer Bank [Member] | |||||||
| Offsetting Assets [Line Items] | |||||||
| Derivative Asset, Fair Value, Gross Asset | 17,242 | ||||||
| Derivative Asset, Fair Value, Gross Liability | 0 | ||||||
| Derivative Asset | 17,242 | ||||||
| Derivative, Collateral, Obligation to Return Cash | [1] | 17,242 | |||||
| Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | ||||||
| Derivative Liability, Fair Value, Gross Liability | 47,338 | ||||||
| Derivative Liability, Fair Value, Gross Asset | 0 | ||||||
| Derivative Liability | 47,338 | ||||||
| Derivative Liability, Not Offset, Policy Election Deduction | [1] | 0 | |||||
| Derivative, Collateral, Right to Reclaim Cash | [1] | 47,338 | |||||
| Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | ||||||
| Customer Loan Swaps Commercial Customer [Member] | |||||||
| Offsetting Assets [Line Items] | |||||||
| Derivative Asset, Fair Value, Gross Asset | [2] | 47,338 | 17,756 | ||||
| Derivative Asset, Fair Value, Gross Liability | [2] | 0 | 0 | ||||
| Derivative Asset | [2] | 47,338 | 17,756 | ||||
| Derivative, Collateral, Obligation to Return Cash | [1],[2] | 0 | 0 | ||||
| Derivative Asset, Fair Value, Amount Offset Against Collateral | [2] | 47,338 | 17,756 | ||||
| Derivative Liability, Fair Value, Gross Liability | [2] | 514 | |||||
| Derivative Liability, Fair Value, Gross Asset | [2] | 0 | |||||
| Derivative Liability | [2] | 514 | |||||
| Derivative, Collateral, Right to Reclaim Cash | [1],[2] | 0 | |||||
| Derivative Liability, Fair Value, Amount Offset Against Collateral | [2] | 514 | |||||
| Interest Rate Swap On Loans [Member] | |||||||
| Offsetting Assets [Line Items] | |||||||
| Derivative Asset, Fair Value, Gross Asset | 6,109 | ||||||
| Derivative Asset, Fair Value, Gross Liability | 0 | ||||||
| Derivative Asset | 6,109 | ||||||
| Derivative, Collateral, Obligation to Return Cash | [1] | (6,109) | |||||
| Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | ||||||
| FHLBB Advance Interest Rate Swap [Member] | |||||||
| Offsetting Assets [Line Items] | |||||||
| Derivative Asset, Fair Value, Gross Asset | 483 | ||||||
| Derivative Asset, Fair Value, Gross Liability | 0 | ||||||
| Derivative Asset | 483 | ||||||
| Derivative, Collateral, Obligation to Return Cash | [1] | (483) | |||||
| Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | ||||||
| Junior Subordinated Debt Interest Rate Swap [Member] | |||||||
| Offsetting Assets [Line Items] | |||||||
| Derivative Liability, Fair Value, Gross Liability | 12,584 | 8,187 | |||||
| Derivative Liability, Fair Value, Gross Asset | 0 | 0 | |||||
| Derivative Liability | 12,584 | 8,187 | |||||
| Derivative, Collateral, Right to Reclaim Cash | [1] | 12,584 | 8,187 | ||||
| Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | $ 0 | |||||
| Interest Rate Swap On Borrowings | |||||||
| Offsetting Assets [Line Items] | |||||||
| Derivative Liability, Fair Value, Gross Liability | 2,123 | ||||||
| Derivative Liability, Fair Value, Gross Asset | 0 | ||||||
| Derivative Liability | 2,123 | ||||||
| Derivative, Collateral, Right to Reclaim Cash | [1] | 2,123 | |||||
| Derivative Liability, Fair Value, Amount Offset Against Collateral | $ 0 | ||||||
| |||||||
REGULATORY CAPITAL REQUIREMENTS (Details) $ in Thousands |
6 Months Ended | ||
|---|---|---|---|
|
Jun. 30, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
Oct. 08, 2015
USD ($)
|
|
| Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
| Subordinated Debt, Phase-Out Period | 5 years | ||
| Subordinated debentures | $ 59,231 | $ 59,080 | $ 15,000 |
| Banking Regulation, Total Capital, Actual | $ 474,226 | $ 455,702 | |
| Banking Regulation, Total Risk-Based Capital Ratio, Actual | 0.1456 | 0.1444 | |
| Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.1050 | 0.1050 | |
| Banking Regulation, Tier One Risk-Based Capital, Actual | $ 423,667 | $ 415,511 | |
| Banking Regulation, Tier One Risk-Based Capital Ratio, Actual | 0.1301 | 0.1316 | |
| Banking Regulation, Tier One Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.0850 | 0.0850 | |
| Common equity tier I capital | $ 380,667 | $ 372,511 | |
| Common Equity Tier I Risk Based Capital Ratio | 11.69% | 11.80% | |
| Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 7.00% | 7.00% | |
| Banking Regulation, Tier One Leverage Capital, Actual | $ 423,667 | $ 415,511 | |
| Banking Regulation, Excess Tier One Leverage Capital Ratio, Actual | 0.0895 | 0.0955 | |
| Banking Regulation, Tier One Leverage Capital Ratio, Capital Adequacy, Minimum | 0.0400 | 0.0400 | |
| Subsidiaries | |||
| Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
| Banking Regulation, Total Capital, Actual | $ 446,322 | $ 423,540 | |
| Banking Regulation, Total Risk-Based Capital Ratio, Actual | 0.1375 | 0.1345 | |
| Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.1050 | 0.1050 | |
| Banking Regulation, Tier One Risk-Based Capital, Actual | $ 410,763 | $ 398,349 | |
| Banking Regulation, Total Risk-Based Capital Ratio, Well Capitalized, Minimum | 0.1000 | 0.1000 | |
| Banking Regulation, Tier One Risk-Based Capital Ratio, Actual | 0.1265 | 0.1265 | |
| Banking Regulation, Tier One Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.0850 | 0.0850 | |
| Common equity tier I capital | $ 410,763 | $ 398,349 | |
| Banking Regulation, Tier One Risk-Based Capital Ratio, Well Capitalized, Minimum | 0.0800 | 0.0800 | |
| Common Equity Tier I Risk Based Capital Ratio | 12.65% | 12.65% | |
| Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 7.00% | 7.00% | |
| Banking Regulation, Tier One Leverage Capital, Actual | $ 410,763 | $ 398,349 | |
| Common Equity Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 6.50% | 6.50% | |
| Banking Regulation, Excess Tier One Leverage Capital Ratio, Actual | 0.0871 | 0.0919 | |
| Banking Regulation, Tier One Leverage Capital Ratio, Capital Adequacy, Minimum | 0.0400 | 0.0400 | |
| Banking Regulation, Tier One Leverage Capital Ratio, Well Capitalized, Minimum | 0.0500 | 0.0500 |
REGULATORY CAPITAL REQUIREMENTS Regulatory Capital Requirements (Narrative) (Details) $ in Thousands |
6 Months Ended | ||
|---|---|---|---|
|
Jun. 30, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
Oct. 08, 2015
USD ($)
|
|
| Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
| Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.1050 | 0.1050 | |
| Banking Regulation, Tier One Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.0850 | 0.0850 | |
| Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 7.00% | 7.00% | |
| Banking Regulation, Tier One Leverage Capital Ratio, Capital Adequacy, Minimum | 0.0400 | 0.0400 | |
| Value Of Trust Preferred Securities Included In Tier One Capital | $ 43,000 | $ 43,000 | |
| Subordinated Debt | $ 59,231 | 59,080 | $ 15,000 |
| Subordinated Debt, Phase-Out Period, Annual, Percentage | 0.20 | ||
| Subordinated Debt, Phase-Out Period | 5 years | ||
| Minimum | |||
| Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
| Banking Regulation, Total Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.080 | ||
| Banking Regulation, Tier One Risk-Based Capital Ratio, Capital Adequacy, Minimum | 0.060 | ||
| Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | ||
| Banking Regulation, Tier One Leverage Capital Ratio, Capital Adequacy, Minimum | 0.040 | ||
| Tier II Capital [Domain] | |||
| Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
| Subordinated Debt | $ 15,000 | $ 15,000 | |
| Tier II Capital [Domain] | |||
| Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
| Subordinated Debt | $ 15,000 |
OTHER COMPREHENSIVE INCOME (LOSS) Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| AFS Securities: | ||||
| Unrealized holding gains, pre-tax amount | $ 9,082 | $ 13,835 | $ 33,197 | $ 27,719 |
| Unrealized holdings gains, tax (expense) benefit | (1,952) | (2,975) | (7,137) | (5,960) |
| Unrealized holdings gains, after-tax amount | 7,130 | 10,860 | 26,060 | 21,759 |
| Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax | 0 | 27 | 0 | 27 |
| Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | 0 | (6) | 0 | (6) |
| Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | 21 | 0 | 21 |
| Net unrealized gains, pre-tax amount | 9,082 | 13,808 | 33,197 | 27,692 |
| Net unrealized gains, tax (expense) benefit | (1,952) | (2,969) | (7,137) | (5,954) |
| Net unrealized gains, after-tax amount | 7,130 | 10,839 | 26,060 | 21,738 |
| Cash Flow Hedges: | ||||
| Net decrease in fair value, pre-tax amount | (14) | (1,533) | (1,162) | (2,711) |
| Net decrease in fair value, tax (expense) benefit | 3 | 330 | 250 | 583 |
| Net decrease in fair value, after-tax amount | (11) | (1,203) | (912) | (2,128) |
| Less: effective portion reclassified into interest expense, after-tax amount | (210) | (251) | ||
| Net decrease in fair value, pre-tax amount | 66 | (1,332) | (894) | (2,391) |
| Net decrease in fair value, tax (expense) benefit | (14) | 286 | 192 | 514 |
| Net decrease in fair value, after-tax amount | 52 | (1,046) | (702) | (1,877) |
| Postretirement Plans: | ||||
| Net actuarial gain, pre-tax amount | 175 | 67 | 351 | 134 |
| Net actuarial gain, tax (expense) benefit | (37) | (15) | (76) | (29) |
| Net actuarial gain, after-tax amount | 138 | 52 | 275 | 105 |
| Less: Amortiaztion of net prior service credits, pre-tax amount | 6 | 6 | 12 | 12 |
| Less: Amortiaztion of net prior service credits, tax (expense) benefit | (1) | (2) | (3) | (3) |
| Less: Amortiaztion of net prior service credits, after-tax amount | 5 | 4 | 9 | 9 |
| Net gain on postretirement plans, pre-tax amount | 169 | 61 | 339 | 122 |
| Net gain on postretirement plans, tax (expense) benefit | (36) | (13) | (73) | (26) |
| Net gain on postretirement plans, net of tax | 133 | 48 | 266 | 96 |
| Other comprehensive income, pre-tax amount | 9,317 | 12,537 | 32,642 | 25,423 |
| Other comprehensive income, tax (expense) benefit | (2,002) | (2,696) | (7,018) | (5,466) |
| Other comprehensive income | 7,315 | 9,841 | 25,624 | 19,957 |
| Interest Expense, Borrowings | ||||
| Cash Flow Hedges: | ||||
| Less: effective portion reclassified into interest expense, pre-tax amount | (327) | (201) | (567) | (320) |
| Less: effective portion reclassified into interest expense, tax (expense) benefit | 70 | 44 | 122 | 69 |
| Less: effective portion reclassified into interest expense, after-tax amount | (257) | (157) | (445) | (251) |
| Interest Income, Interest and Fees on Loans | ||||
| Cash Flow Hedges: | ||||
| Less: effective portion reclassified into interest expense, pre-tax amount | 247 | 0 | 299 | 0 |
| Less: effective portion reclassified into interest expense, tax (expense) benefit | (53) | 0 | (64) | 0 |
| Less: effective portion reclassified into interest expense, after-tax amount | $ 194 | $ 0 | $ 235 | $ 0 |
OTHER COMPREHENSIVE INCOME (LOSS) Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
| Net unrealized gains on available-for-sale securities, beginning balance | $ 3,250 | $ (17,826) | ||
| Net unrealized losses on cash flow hedging derivative instruments, beginning balance | (6,048) | (4,437) | ||
| Net unrecognized gains on postretirement plans, beginning balance | (3,470) | (2,157) | ||
| Accumulated other comprehensive (income) loss, beginning balance | (6,268) | (24,420) | ||
| Net Unrealized Gains (Losses) on AFS Securities | ||||
| Other comprehensive income (loss) before reclassifications | $ 7,130 | $ 10,860 | 26,060 | 21,759 |
| Less: Amounts reclassified from AOCI | 0 | 21 | ||
| Other comprehensive income (loss) | 7,130 | 10,839 | 26,060 | 21,738 |
| Net Unrealized Losses on Cash Flow Hedges | ||||
| Other comprehensive income (loss) before reclassifications | (11) | (1,203) | (912) | (2,128) |
| Less: Amounts reclassified from AOCI | (210) | (251) | ||
| Other comprehensive income (loss) | 52 | (1,046) | (702) | (1,877) |
| Defined Benefit Postretirement Plans | ||||
| Other comprehensive income (loss) before reclassifications | 138 | 52 | 275 | 105 |
| Less: Amounts reclassified from AOCI | 9 | 9 | ||
| Other comprehensive income (loss) | 133 | 48 | 266 | 96 |
| Accumulated other comprehensive Income (Loss) | ||||
| Other comprehensive income (loss) before reclassification | 25,423 | 19,736 | ||
| Less: Amounts reclassified from AOCI | (201) | (221) | ||
| Other Comprehensive Income (Loss) | 7,315 | 9,841 | 25,624 | 19,957 |
| Net unrealized gains on available-for-sale securities, ending balance | 29,310 | 3,912 | 29,310 | 3,912 |
| Net unrealized losses on cash flow hedging derivative instruments, ending balance | (6,750) | (6,314) | (6,750) | (6,314) |
| Net unrecognized gains on postretirement plans, ending balance | (3,204) | (2,061) | (3,204) | (2,061) |
| Accumulated other comprehensive (income) loss, ending balance | $ 19,356 | $ (4,463) | $ 19,356 | $ (4,463) |
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Disaggregation of Revenue [Line Items] | ||||
| Revenue from Contract with Customer, Excluding Assessed Tax | $ 6,376 | $ 7,182 | $ 13,071 | $ 13,575 |
| Revenue Not from Contract with Customer | 5,684 | 2,855 | 10,392 | 5,851 |
| Noninterest Income | 12,060 | 10,037 | 23,463 | 19,426 |
| Products And Services, Debt Card Income [Member] | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 2,391 | 2,281 | 4,532 | 4,291 |
| Products And Services, Deposit Accounts Service Charges [Member] | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 1,337 | 2,209 | 3,349 | 4,232 |
| Products And Services, Fiduciary Services Income [Member] | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 1,603 | 1,545 | 3,105 | 2,937 |
| Products And Services, Brokerage and Insurance Commissions [Member] | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue from Contract with Customer, Excluding Assessed Tax | 622 | 732 | 1,279 | 1,317 |
| Products And Services, Other Income [Member] | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue from Contract with Customer, Excluding Assessed Tax | $ 423 | $ 415 | $ 806 | $ 798 |
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Supplemental Employee Retirement Plan [Member] | ||||
| Net periodic pension cost | ||||
| Service cost | $ 116 | $ 99 | $ 232 | $ 198 |
| Interest cost | 115 | 130 | 230 | 261 |
| Recognized net actuarial loss | 156 | 61 | 312 | 122 |
| Net period benefit cost | 387 | 290 | 774 | 581 |
| Other Postretirement Benefit Plan | ||||
| Net periodic pension cost | ||||
| Service cost | 7 | 12 | 14 | 24 |
| Interest cost | 31 | 37 | 62 | 74 |
| Recognized net actuarial loss | 20 | 6 | 39 | 12 |
| Amortization of prior service credit | (6) | (6) | (12) | (12) |
| Net period benefit cost | $ 52 | $ 49 | $ 103 | $ 98 |
EPS (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|||||||
| Earnings Per Share [Abstract] | ||||||||||
| Net income | $ 10,940 | $ 13,204 | $ 24,433 | $ 27,477 | ||||||
| Dividends and undistributed earnings allocated to participating securities | [1] | (27) | (26) | (55) | (54) | |||||
| Net income available to common shareholders | $ 10,913 | $ 13,178 | $ 24,378 | $ 27,423 | ||||||
| Weighted-average common shares outstanding for basic EPS | 14,959,851 | 15,519,827 | 15,031,525 | 15,555,770 | ||||||
| Dilutive effect of stock-based awards (shares) | [2] | 37,760 | 39,933 | 37,607 | 39,884 | |||||
| Weighted-average common and potential common shares for diluted EPS (shares) | 14,997,611 | 15,559,760 | 15,069,132 | 15,595,654 | ||||||
| Basic EPS (in dollars per share) | $ 0.73 | $ 0.85 | $ 1.62 | $ 1.76 | ||||||
| Diluted EPS (in dollars per share) | $ 0.73 | $ 0.85 | $ 1.62 | $ 1.76 | ||||||
| Antidilutive Stock options (shares) | [3] | 11,202 | 0 | 3,429 | 0 | |||||
| ||||||||||
FAIR VALUE MEASUREMENT AND DISCLOSURE (Narrative) (Details) - USD ($) |
Jun. 30, 2020 |
Dec. 31, 2019 |
Jun. 30, 2019 |
|---|---|---|---|
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Financing Receivable, Individually Evaluated for Impairment | $ 4,163,000 | $ 4,478,000 | $ 6,443,000 |
| Substandard [Member] | Minimum | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Financing Receivable, Individually Evaluated for Impairment | $ 500,000 |
FAIR VALUE MEASUREMENT AND DISCLOSURE (Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Financial assets: | ||
| Loans held for sale | $ 35,909 | $ 11,915 |
| Available-for-sale Securities | 1,047,663 | 918,118 |
| Obligations of states and political subdivisions | ||
| Financial assets: | ||
| Available-for-sale Securities | 127,127 | 118,083 |
| Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||
| Financial assets: | ||
| Available-for-sale Securities | 536,225 | 463,386 |
| Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
| Financial assets: | ||
| Available-for-sale Securities | 373,532 | 325,905 |
| Fair Value, Measurements, Recurring | ||
| Financial assets: | ||
| Loans held for sale | 36,590 | 11,854 |
| Customer loan swaps | 47,338 | |
| Financial liabilities: | ||
| Junior subordinated debt interest rate swaps | 8,187 | |
| Customer loan swaps | 218 | |
| Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ||
| Financial assets: | ||
| Available-for-sale Securities | 127,127 | 118,083 |
| Fair Value, Measurements, Recurring | Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises | ||
| Financial assets: | ||
| Available-for-sale Securities | 536,225 | 463,386 |
| Fair Value, Measurements, Recurring | Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises | ||
| Financial assets: | ||
| Available-for-sale Securities | 373,532 | 325,905 |
| Fair Value, Measurements, Recurring | Corporate Bond Securities [Member] | ||
| Financial assets: | ||
| Available-for-sale Securities | 10,779 | 10,744 |
| Fair Value, Measurements, Recurring | Equity investments | ||
| Financial assets: | ||
| Available-for-sale Securities | 1,674 | 1,674 |
| 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 | 36,590 | 11,854 |
| Customer loan swaps | 47,338 | |
| Financial liabilities: | ||
| Junior subordinated debt interest rate swaps | 8,187 | |
| Customer loan swaps | 218 | |
| Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Obligations of states and political subdivisions | ||
| Financial assets: | ||
| Available-for-sale Securities | 127,127 | 118,083 |
| 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 | 536,225 | 463,386 |
| 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 | 373,532 | 325,905 |
| Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Corporate Bond Securities [Member] | ||
| Financial assets: | ||
| Available-for-sale Securities | 10,779 | 10,744 |
| Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | Equity investments | ||
| Financial assets: | ||
| Available-for-sale Securities | 1,674 | 1,674 |
| 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 | 6,109 | 483 |
| Interest Rate Swap On Loans [Member] | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
| Financial liabilities: | ||
| Junior subordinated debt interest rate swaps | 6,109 | 483 |
| Interest Rate Lock Commitments [Member] | Fair Value, Measurements, Recurring | ||
| Financial assets: | ||
| Customer loan swaps | 1,287 | 480 |
| Financial liabilities: | ||
| Customer loan swaps | 329 | 18 |
| Interest Rate Lock Commitments [Member] | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
| Financial assets: | ||
| Customer loan swaps | 1,287 | 480 |
| Financial liabilities: | ||
| Customer loan swaps | 329 | 18 |
| 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 | 359 | 312 |
| Financial liabilities: | ||
| Customer loan swaps | 15 | |
| Forward Contracts [Member] | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
| Financial assets: | ||
| Customer loan swaps | 359 | 312 |
| Financial liabilities: | ||
| Customer loan swaps | 15 | |
| Interest rate swaps | Fair Value, Measurements, Recurring | ||
| Financial assets: | ||
| Customer loan swaps | 17,756 | |
| Financial liabilities: | ||
| Junior subordinated debt interest rate swaps | 12,584 | |
| Customer loan swaps | 17,756 | |
| Interest rate swaps | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
| Financial assets: | ||
| Customer loan swaps | 17,756 | |
| Financial liabilities: | ||
| Junior subordinated debt interest rate swaps | 12,584 | |
| Customer loan swaps | $ 17,756 | |
| Customer Loan Swaps | Fair Value, Measurements, Recurring | ||
| Financial liabilities: | ||
| Customer loan swaps | 47,338 | |
| 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 | 47,338 | |
| Customer Loan Swaps | Company Determined Fair Value (Level 3) | Fair Value, Measurements, Recurring | ||
| Financial liabilities: | ||
| Customer loan swaps | 0 | |
| Interest Rate Swap On Borrowings | ||
| Financial liabilities: | ||
| Junior subordinated debt interest rate swaps | 2,123 | |
| Interest Rate Swap On Borrowings | Fair Value, Measurements, Recurring | ||
| Financial liabilities: | ||
| Junior subordinated debt interest rate swaps | 2,123 | |
| Interest Rate Swap On Borrowings | Observable Market Data (Level 2) | Fair Value, Measurements, Recurring | ||
| Financial liabilities: | ||
| Junior subordinated debt interest rate swaps | $ 2,123 |
FAIR VALUE MEASUREMENT AND DISCLOSURE (Summary of Assets Measured at Fair Value on Non Recurring Basis) (Details) - Other real estate owned - Fair Value, Nonrecurring [Member] - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
| Fair Value | $ 94 | $ 94 |
| Company Determined Fair Value (Level 3) | ||
| Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
| Fair Value | $ 94 | $ 94 |
FAIR VALUE MEASUREMENT AND DISCLOSURE (Schedule of Valuation Methodology and Unobservable Inputs) (Details) $ in Thousands |
Jun. 30, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
Jun. 30, 2019
USD ($)
|
|---|---|---|---|
| Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
| Impaired Loans | $ 4,163 | $ 4,478 | $ 6,443 |
| Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Other real estate owned | |||
| Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
| Other Real Estate | $ 94 | $ 94 | |
| Measurement Input, Appraised Value [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Minimum | Fair Value, Nonrecurring [Member] | Other real estate owned | |||
| Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
| Other Real Estate Owned, Measurement Input | 0.18 | 0.18 | |
| Measurement Input, Appraised Value [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Maximum | Fair Value, Nonrecurring [Member] | Other real estate owned | |||
| Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
| Other Real Estate Owned, Measurement Input | 0.18 | 0.18 | |
| Measurement Input, Cost to Sell [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Minimum | Fair Value, Nonrecurring [Member] | Other real estate owned | |||
| Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
| Other Real Estate Owned, Measurement Input | 0.13 | 0.13 | |
| Measurement Input, Cost to Sell [Member] | Fair Value, Inputs, Level 3 [Member] | Market Approach Valuation Technique | Maximum | Fair Value, Nonrecurring [Member] | Other real estate owned | |||
| Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
| Other Real Estate Owned, Measurement Input | 0.13 | 0.13 |
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, 2020 |
Dec. 31, 2019 |
||||
|---|---|---|---|---|---|---|
| Financial assets: | ||||||
| Available-for-sale Securities | $ 1,047,663 | $ 918,118 | ||||
| Held-to-maturity securities, at amortized cost | 1,299 | 1,302 | ||||
| Debt Securities, Held-to-maturity, Fair Value | 1,388 | 1,359 | ||||
| Loans held for sale | 35,909 | 11,915 | ||||
| Mortgage servicing rights | 1,849 | 1,496 | ||||
| Financial liabilities: | ||||||
| Time deposits | 485,240 | 594,881 | ||||
| Short-term Debt, Fair Value | 245,976 | 268,631 | ||||
| Long-term Debt, Fair Value | 25,362 | 10,002 | ||||
| Subordinated debentures | 45,588 | 50,171 | ||||
| Residential Real Estate | ||||||
| Financial assets: | ||||||
| Loans receivable, net of allowance | [1] | 1,058,558 | 1,066,544 | |||
| Commercial Real Estate | ||||||
| Financial assets: | ||||||
| Loans receivable, net of allowance | [1] | 1,247,001 | 1,196,297 | |||
| Commercial | ||||||
| Financial assets: | ||||||
| Loans receivable, net of allowance | [1],[2] | 416,406 | 431,892 | |||
| Home Equity | ||||||
| Financial assets: | ||||||
| Loans receivable, net of allowance | [1] | 280,674 | 293,565 | |||
| Consumer | ||||||
| Financial assets: | ||||||
| Loans receivable, net of allowance | [1] | 20,552 | 23,355 | |||
| 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 | 1,388 | 1,359 | ||||
| Mortgage servicing rights | 0 | 0 | ||||
| Financial liabilities: | ||||||
| Time deposits | 485,240 | 594,881 | ||||
| Short-term Debt, Fair Value | 245,976 | 268,631 | ||||
| Long-term Debt, Fair Value | 25,362 | 10,002 | ||||
| Subordinated debentures | 45,588 | 50,171 | ||||
| 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 | 1,849 | 1,496 | ||||
| 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] | 1,058,558 | 1,066,544 | |||
| Company Determined Fair Value (Level 3) | Commercial Real Estate | ||||||
| Financial assets: | ||||||
| Loans receivable, net of allowance | [1] | 1,247,001 | 1,196,297 | |||
| Company Determined Fair Value (Level 3) | Commercial | ||||||
| Financial assets: | ||||||
| Loans receivable, net of allowance | [1],[2] | 416,406 | 431,892 | |||
| Company Determined Fair Value (Level 3) | Home Equity | ||||||
| Financial assets: | ||||||
| Loans receivable, net of allowance | [1] | 280,674 | 293,565 | |||
| Company Determined Fair Value (Level 3) | Consumer | ||||||
| Financial assets: | ||||||
| Loans receivable, net of allowance | [1] | 20,552 | 23,355 | |||
| Carrying Amount | ||||||
| Financial assets: | ||||||
| Held-to-maturity securities, at amortized cost | 1,299 | 1,302 | ||||
| Mortgage servicing rights | 1,486 | 877 | ||||
| Financial liabilities: | ||||||
| Time deposits | 481,396 | 595,549 | ||||
| Short-term Debt, Fair Value | 245,998 | 268,809 | ||||
| Long-term Debt, Fair Value | 25,000 | 10,000 | ||||
| Subordinated debentures | 59,231 | 59,080 | ||||
| Carrying Amount | Residential Real Estate | ||||||
| Financial assets: | ||||||
| Loans receivable, net of allowance | [1] | 1,045,730 | 1,064,532 | |||
| Carrying Amount | Commercial Real Estate | ||||||
| Financial assets: | ||||||
| Loans receivable, net of allowance | [1] | 1,292,599 | 1,230,983 | |||
| Carrying Amount | Commercial | ||||||
| Financial assets: | ||||||
| Loans receivable, net of allowance | [1],[2] | 423,337 | 438,716 | |||
| Carrying Amount | Home Equity | ||||||
| Financial assets: | ||||||
| Loans receivable, net of allowance | [1] | 287,731 | 310,356 | |||
| Carrying Amount | Consumer | ||||||
| Financial assets: | ||||||
| Loans receivable, net of allowance | [1] | $ 22,415 | $ 25,265 | |||
| ||||||
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