10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2016.

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 0-15752

CENTURY BANCORP, INC.

(Exact name of registrant as specified in its charter)

COMMONWEALTH OF MASSACHUSETTS	04-2498617
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

400 MYSTIC AVENUE, MEDFORD, MA	02155
(Address of principal executive offices)	(Zip Code)

(781) 391-4000

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), (2) has been subject to such filing requirements for the past 90 days.    ☒  Yes    ☐  No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    ☒  Yes    ☐  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. (See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act). (Check one):

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ☐  Yes    ☒  No

As of October 31, 2016, the Registrant had outstanding:

Class A Common Stock, $1.00 par value	3,600,729 Shares
Class B Common Stock, $1.00 par value	1,967,180 Shares

Century Bancorp, Inc.

	Index	Page Number
Part I	Financial Information
	Forward Looking Statements		3
Item 1.	Financial Statements (unaudited)
	Consolidated Balance Sheets: September 30, 2016 and December 31, 2015		4
	Consolidated Statements of Income: Three Months and Nine Months Ended September 30, 2016 and 2015		5
	Consolidated Statements of Comprehensive Income: Three Months and Nine Months Ended September 30, 2016 and 2015		6
	Consolidated Statements of Changes in Stockholders’ Equity: Nine Months Ended September 30, 2016 and 2015		7
	Consolidated Statements of Cash Flows: Nine Months Ended September 30, 2016 and 2015		8
	Notes to Consolidated Financial Statements		9-30
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		30-41
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		42
Item 4.	Controls and Procedures		42
Part II.	Other Information
Item 1.	Legal Proceedings		43
Item 1A.	Risk Factors		43
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		43
Item 3.	Defaults Upon Senior Securities		43
Item 4.	Mine Safety Disclosures		43
Item 5.	Other Information		43
Item 6.	Exhibits		43
Signatures			44
Exhibits	Ex-31.1
	Ex-31.2
	Ex-32.1
	Ex-32.2
	Ex-101 Instance Document
	Ex-101 Schema Document
	Ex-101 Calculation Linkbase Document
	Ex-101 Labels Linkbase Document
	Ex-101 Presentation Linkbase Document
	Ex-101 Definition Linkbase Document

Forward Looking Statements

Except for the historical information contained herein, this Quarterly Report on Form 10-Q may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results of operations may differ materially from those projected or suggested in the forward-looking statements due to certain risks and uncertainties, including, without limitation, (i) the fact that the Company’s success is dependent to a significant extent upon general economic conditions in New England, (ii) the fact that the Company’s earnings depend to a great extent upon the level of net interest income (the difference between interest income earned on loans and investments and the interest expense paid on deposits and other borrowings) generated by the Bank and thus the Bank’s results of operations may be adversely affected by increases or decreases in interest rates, (iii) the fact that the banking business is highly competitive and the profitability of the Company depends upon the Bank’s ability to attract loans and deposits within its market area, where the Bank competes with a variety of traditional banking and other institutions such as credit unions and finance companies, and (iv) the fact that a significant portion of the Company’s loan portfolio is comprised of commercial loans, exposing the Company to the risks inherent in loans based upon analyses of credit risk, the value of underlying collateral, including real estate, and other more intangible factors, which are considered in making commercial loans. Accordingly, the Company’s profitability may be negatively impacted by errors in risk analyses, and by loan defaults, and the ability of certain borrowers to repay such loans may be adversely affected by any downturn in general economic conditions. These factors, as well as general economic and market conditions, may materially and adversely affect the market price of shares of the Company’s common stock. Because of these and other factors, past financial performance should not be considered an indicator of future performance. The forward-looking statements contained herein represent the Company’s judgment as of the date of this Form 10-Q, and the Company cautions readers not to place undue reliance on such statements.

3

PART I—Item 1

Century Bancorp, Inc.

Consolidated Balance Sheets (unaudited)

(In thousands, except share data)

	September 30, 2016			December 31, 2015
Assets
Cash and due from banks	$	58,975		$	52,877
Federal funds sold and interest-bearing deposits in other banks		159,900			167,847
Total cash and cash equivalents		218,875			220,724
Short-term investments		3,241			3,233
Securities available-for-sale, amortized cost $526,762 and $404,977, respectively		526,132			404,623
Securities held-to-maturity, fair value $1,589,183 and $1,438,960, respectively		1,565,191			1,438,903
Federal Home Loan Bank of Boston stock, at cost		21,148			28,807
Loans, net:
Commercial and industrial		549,290			452,235
Municipal		145,063			85,685
Construction and land development		19,522			27,421
Commercial real estate		692,778			721,506
Residential real estate		222,881			255,346
Home equity		200,085			178,020
Consumer and other		11,474			11,323
Total loans, net		1,841,093			1,731,536
Less: allowance for loan losses		24,208			23,075
Net loans		1,816,885			1,708,461
Bank premises and equipment		23,334			24,106
Accrued interest receivable		7,597			8,002
Goodwill		2,714			2,714
Other assets		113,206			107,868
Total assets	$	4,298,323		$	3,947,441
Liabilities
Deposits:
Demand deposits	$	645,317		$	541,955
Savings and NOW deposits		1,293,995			1,070,585
Money market accounts		1,067,170			989,094
Time deposits		454,631			473,426
Total deposits		3,461,113			3,075,060
Securities sold under agreements to repurchase		214,320			197,850
Other borrowed funds		293,000			368,000
Subordinated debentures		36,083			36,083
Due to broker		2,252			405
Other liabilities		57,774			55,499
Total liabilities		4,064,542			3,732,897
Stockholders’ Equity
Preferred stock—$1.00 par value; 100,000 shares authorized; no shares issued and outstanding		—			—
Class A common stock, $1.00 par value per share; authorized 10,000,000 shares; issued 3,600,729 shares and 3,600,729 shares, respectively		3,601			3,601
Class B common stock, $1.00 par value per share; authorized 5,000,000 shares; issued 1,967,180 and 1,967,180 shares, respectively		1,967			1,967
Additional paid-in capital		12,292			12,292
Retained earnings		237,616			221,232
		255,476			239,092
Unrealized losses on securities available-for-sale, net of taxes		(394	)		(246	)
Unrealized losses on securities transferred to held-to-maturity, net of taxes		(4,622	)		(6,896	)
Pension liability, net of taxes		(16,679	)		(17,406	)
Total accumulated other comprehensive loss, net of taxes		(21,695	)		(24,548	)
Total stockholders’ equity		233,781			214,544
Total liabilities and stockholders’ equity	$	4,298,323		$	3,947,441

See accompanying notes to unaudited consolidated interim financial statements.

4

Century Bancorp, Inc.

Consolidated Statements of Income (unaudited)

(In thousands, except share data)

	Three months ended September 30,					Nine months ended September 30,
	2016			2015		2016		2015
Interest income
Loans	$	15,045		$	14,051	$	43,380	$	38,597
Securities held-to-maturity		8,238			8,834		24,178		26,373
Securities available-for-sale		1,439			830		3,546		2,299
Federal funds sold and interest-bearing deposits in other banks		283			35		906		328
Total interest income		25,005			23,750		72,010		67,597
Interest expense
Savings and NOW deposits		1,083			729		2,859		2,049
Money market accounts		909			760		2,485		2,276
Time deposits		1,464			1,231		4,216		3,594
Securities sold under agreements to repurchase		122			129		363		371
Other borrowed funds and subordinated debentures		2,213			2,285		6,767		6,570
Total interest expense		5,791			5,134		16,690		14,860
Net interest income		19,214			18,616		55,320		52,737
Provision for loan losses		375			—		1,175		200
Net interest income after provision for loan losses		18,839			18,616		54,145		52,537
Other operating income
Service charges on deposit accounts		1,983			1,941		5,882		5,788
Lockbox fees		759			782		2,431		2,458
Net gains on sales of securities		19			52		64		170
Gains on sales of mortgage loans		533			225		1,331		742
Other income		931			830		2,814		2,387
Total other operating income		4,225			3,830		12,522		11,545
Operating expenses
Salaries and employee benefits		10,544			10,087		30,360		28,701
Occupancy		1,509			1,499		4,639		4,621
Equipment		772			697		2,087		1,949
FDIC assessments		343			554		1,503		1,602
Other		3,462			3,263		10,012		9,531
Total operating expenses		16,630			16,100		48,601		46,404
Income before income taxes		6,434			6,346		18,066		17,678
Provision for income taxes		(52	)		180		32		628
Net income	$	6,486		$	6,166	$	18,034	$	17,050
Share data:
Weighted average number of shares outstanding, basic
Class A		3,600,729			3,600,729		3,600,729		3,600,729
Class B		1,967,180			1,967,180		1,967,180		1,967,180
Weighted average number of shares outstanding, diluted
Class A		5,567,909			5,567,909		5,567,909		5,567,909
Class B		1,967,180			1,967,180		1,967,180		1,967,180
Basic earnings per share:
Class A	$	1.41		$	1.35	$	3.93	$	3.72
Class B	$	0.71		$	0.67	$	1.97	$	1.86
Diluted earnings per share
Class A	$	1.16		$	1.11	$	3.24	$	3.06
Class B	$	0.71		$	0.67	$	1.97	$	1.86

See accompanying notes to unaudited consolidated interim financial statements.

5

Century Bancorp, Inc.

Consolidated Statements of Comprehensive Income (unaudited)

(In thousands)

	Three months ended September 30,
	2016			2015
Net income	$	6,486		$	6,166
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on securities:
Unrealized (losses) gains arising during period		(98	)		27
Less: reclassification adjustment for gains included in net income		(12	)		(31	)
Total unrealized (losses) gains on securities		(110	)		(4	)
Accretion of net unrealized losses transferred		527			935
Defined benefit pension plans:
Amortization of prior service cost and loss included in net periodic benefit cost		242			213
Other comprehensive income		659			1,144
Comprehensive income	$	7,145		$	7,310
	Nine months ended September 30,
	2016			2015
Net income	$	18,034		$	17,050
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on securities:
Unrealized (losses) gains arising during period		(109	)		(2	)
Less: reclassification adjustment for gains included in net income		(39	)		(102	)
Total unrealized (losses) gains on securities		(148	)		(104	)
Accretion of net unrealized losses transferred		2,274			2,697
Defined benefit pension plans:
Amortization of prior service cost and loss included in net periodic benefit cost		727			639
Other comprehensive income		2,853			3,232
Comprehensive income	$	20,887		$	20,282

See accompanying notes to unaudited consolidated interim financial statements.

6

Century Bancorp, Inc.

Consolidated Statements of Changes in Stockholders’ Equity (unaudited)

For the Nine Months Ended September 30, 2016 and 2015

	Class A Common Stock		Class B Common Stock		Additional Paid-In Capital		Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total Stockholders’ Equity
	(In thousands)
Balance at December 31, 2014	$	3,601	$	1,967	$	12,292	$	200,411		$	(25,771	)	$	192,500
Net income		—		—		—		17,050			—			17,050
Other comprehensive income, net of tax:
Unrealized holding (losses) gains arising during period, net of $68 in taxes and $170 in realized gains		—		—		—		—			(104	)		(104	)
Accretion of unrealized losses on securities transferred to held-to-maturity, net of $1,444 in taxes		—		—		—		—			2,697			2,697
Pension liability adjustment, net of $425 in taxes		—		—		—		—			639			639
Cash dividends paid, Class A common stock, $.36 per share		—		—		—		(1,296	)		—			(1,296	)
Cash dividends paid, Class B common stock, $.18 per share		—		—		—		(354	)		—			(354	)
Balance at September 30, 2015	$	3,601	$	1,967	$	12,292	$	215,811		$	(22,539	)	$	211,132
Balance at December 31, 2015	$	3,601	$	1,967	$	12,292	$	221,232		$	(24,548	)	$	214,544
Net income		—		—		—		18,034			—			18,034
Other comprehensive income, net of tax:
Unrealized holding (losses) gains arising during period, net of $128 in taxes and $64 in realized gains		—		—		—		—			(148	)		(148	)
Accretion of unrealized losses on securities transferred to held-to-maturity, net of $1,216 in taxes		—		—		—		—			2,274			2,274
Pension liability adjustment, net of $484 in taxes		—		—		—		—			727			727
Cash dividends paid, Class A common stock, $.36 per share		—		—		—		(1,296	)		—			(1,296	)
Cash dividends paid, Class B common stock, $.18 per share		—		—		—		(354	)		—			(354	)
Balance at September 30, 2016	$	3,601	$	1,967	$	12,292	$	237,616		$	(21,695	)	$	233,781

See accompanying notes to unaudited consolidated interim financial statements.

7

Century Bancorp, Inc.

Consolidated Statements of Cash Flows (unaudited)

For the Nine Months Ended September 30, 2016 and 2015

	Nine months ended September 30,
	2016			2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	18,034		$	17,050
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sales of mortgage loans		(1,331	)		(742	)
Net gains on sales of securities		(64	)		(170	)
Provision for loan losses		1,175			200
Deferred income taxes		(3,143	)		(1,825	)
Net depreciation and amortization		2,498			2,486
Decrease (increase) in accrued interest receivable		405			(1,065	)
Increase in other assets		(3,877	)		(10,430	)
Increase in other liabilities		3,484			1,982
Net cash provided by operating activities		17,181			7,486
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of short-term investments		(8	)		(8	)
Proceeds from redemptions of Federal Home Loan Bank of Boston stock		10,276			—
Purchase of Federal Home Loan Bank of Boston stock		(2,617	)		—
Proceeds from calls/maturities of securities available-for-sale		206,025			163,809
Proceeds from sales of securities available-for-sale		2,376			42,716
Purchase of securities available-for-sale		(328,565	)		(168,889	)
Proceeds from calls/maturities of securities held-to-maturity		318,815			310,694
Proceeds from sales of securities held-to-maturity		192			—
Purchase of securities held-to-maturity		(441,756	)		(443,705	)
Net increase in loans		(182,901	)		(356,915	)
Proceeds from sales of portfolio loans		74,668			48,041
Capital expenditures		(1,408	)		(2,063	)
Net cash used in investing activities		(344,903	)		(406,320	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (decrease) increase in time deposits		(18,795	)		23,275
Net increase in demand, savings, money market and NOW deposits		404,848			148,706
Cash dividends		(1,650	)		(1,650	)
Net increase (decrease) in securities sold under agreements to repurchase		16,470			(590	)
Net (decrease) increase in other borrowed funds		(75,000	)		37,000
Net cash provided by financing activities		325,873			206,741
Net decrease in cash and cash equivalents		(1,849	)		(192,093	)
Cash and cash equivalents at beginning of period		220,724			305,357
Cash and cash equivalents at end of period	$	218,875		$	113,264
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest	$	16,806		$	14,735
Income taxes		2,730			3,780
Change in unrealized losses on securities available-for-sale, net of taxes		(148	)		(104	)
Change in unrealized losses on securities transferred to held-to-maturity, net of taxes		2,274			2,697
Pension liability adjustment, net of taxes		727			639
Change in due to (from) to broker		1,847			4,430

See accompanying notes to unaudited consolidated interim financial statements.

8

Century Bancorp, Inc.

Notes to Unaudited Consolidated Interim Financial Statements

Nine Months Ended September 30, 2016 and 2015

Note 1. Basis of Financial Statement Presentation

The consolidated financial statements include the accounts of Century Bancorp, Inc. (the “Company”) and its wholly owned subsidiary, Century Bank and Trust Company (the “Bank”). The consolidated financial statements also include the accounts of the Bank’s wholly owned subsidiaries, Century Subsidiary Investments, Inc. (“CSII”), Century Subsidiary Investments, Inc. II (“CSII II”), Century Subsidiary Investments, Inc. III (“CSII III”) and Century Financial Services Inc. (“CFSI”). CSII, CSII II, and CSII III are engaged in buying, selling and holding investment securities. CFSI has the power to engage in financial agency, securities brokerage, and investment and financial advisory services and related securities credit. The Company also owns 100% of Century Bancorp Capital Trust II (“CBCT II”). The entity is an unconsolidated subsidiary of the Company.

All significant intercompany accounts and transactions have been eliminated in consolidation. The Company provides a full range of banking services to individual, business and municipal customers in Massachusetts. As a bank holding company, the Company is subject to the regulation and supervision of the Federal Reserve Board. The Bank, a state chartered financial institution, is subject to supervision and regulation by applicable state and federal banking agencies, including the Federal Reserve Board, the Federal Deposit Insurance Corporation (the “FDIC”) and the Commonwealth of Massachusetts Commissioner of Banks. The Bank is also subject to various requirements and restrictions under federal and state law, including requirements to maintain reserves against deposits, restrictions on the types and amounts of loans that may be granted and the interest that may be charged thereon, and limitations on the types of investments that may be made and the types of services that may be offered. Various consumer laws and regulations also affect the operations of the Bank. In addition to the impact of regulation, commercial banks are affected significantly by the actions of the Federal Reserve Board as it attempts to control the money supply and credit availability in order to influence the economy. All aspects of the Company’s business are highly competitive. The Company faces aggressive competition from other lending institutions and from numerous other providers of financial services. The Company has one reportable operating segment.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and general practices within the banking industry. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ from those estimates. The Company’s quarterly report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, as filed with the Securities and Exchange Commission.

Material estimates that are susceptible to change in the near term relate to the allowance for loan losses. Management believes that the allowance for loan losses is adequate based on independent appraisals and review of other factors, including historical charge-off rates with additional allocations based on risk factors for each category and general economic factors. While management uses available information to recognize loan losses, future additions to the allowance for loan losses may be necessary based on changes in economic conditions. In addition, regulatory agencies periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance for loan losses based on their judgments about information available to them at the time of their examination. Certain reclassifications are made to prior-year amounts whenever necessary to conform with the current-year presentation.

9

Note 2. Securities Available-for-Sale

	September 30, 2016								December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
U.S. Treasury	$	2,000	$	—	$	—	$	2,000	$	1,999	$	—	$	10	$	1,989
U.S. Government Sponsored Enterprises		15,000		9		—		15,009		—		—		—		—
SBA Backed Securities		58,496		11		162		58,345		5,983		8		2		5,989
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		264,545		346		437		264,454		232,967		859		300		233,526
Privately Issued Residential Mortgage-Backed Securities		1,190		2		15		1,177		1,437		10		13		1,434
Obligations Issued by States and Political Subdivisions		180,315		—		404		179,911		157,838		—		878		1 56,960
Other Debt Securities		5,100		15		154		4,961		4,600		3		130		4,473
Equity Securities		116		159		—		275		153		99		—		252
Total	$	526,762	$	542	$	1,172	$	526,132	$	404,977	$	979	$	1,333	$	404,623

Included in U.S. Government Sponsored Enterprise Securities and U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities are securities at fair value pledged to secure public deposits and repurchase agreements amounting to $223,246,000 and $220,482,000 at September 30, 2016 and December 31, 2015, respectively. Also included in securities available-for-sale are securities at fair value pledged for borrowing at the Federal Home Loan Bank of Boston amounting to $63,351,000 and $20,056,000 at September 30, 2016 and December 31, 2015, respectively. The Company realized gross gains of $52,000 from the proceeds of $2,376,000 from the sales of available-for-sale securities for the nine months ended September 30, 2016. The Company realized gross gains of $170,000 from the proceeds of $42,716,000 from the sales of available-for-sale securities for the nine months ended September 30, 2015.

Debt securities of Government Sponsored Enterprises primarily refer to debt securities of Fannie Mae and Freddie Mac.

The following table shows the maturity distribution of the Company’s securities available-for-sale at September 30, 2016.

	Amortized Cost		Fair Value
	(in thousands)
Within one year	$	186,348	$	186,336
After one but within five years		203,010		202,873
After five but within ten years		130,087		129,948
More than 10 years		5,701		5,313
Non-maturing		1,616		1,662
Total	$	526,762	$	526,132

The weighted average remaining life of investment securities available-for-sale at September 30, 2016 was 3.6 years. Included in the weighted average remaining life calculation at September 30, 2016 were $15,000,000 of U.S. Government Sponsored Enterprises obligations that are callable at the discretion of the issuer. The contractual maturities, which were used in the table above, of mortgage-backed securities, will differ from the actual maturities, due to the ability of the issuers to prepay underlying obligations.

10

As of September 30, 2016 and December 31, 2015, management concluded that the unrealized losses of its investment securities are temporary in nature since they are not related to the underlying credit quality of the issuers, and the Company does not intend to sell these debt securities and it is not more likely than not that it will be required to sell these debt securities before the anticipated recovery of its remaining amortized cost. In making its other-than-temporary impairment evaluation, the Company considered that the principal and interest on these securities are from issuers that are investment grade. The change in the unrealized losses on the state and municipal securities and the non-agency mortgage-backed securities was primarily caused by changes in credit spreads and liquidity issues in the marketplace.

The unrealized loss on SBA Backed Securities, U.S. Government Agency and Sponsored Enterprise Mortgage Backed Securities, and Obligations Issued by States and Political Subdivisions, related primarily to interest rates and not credit quality, and because the Company has the ability and intent to hold these investments until recovery of fair value, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired.

In evaluating the underlying credit quality of a security, management considers several factors such as the credit rating of the obligor and the issuer, if applicable. Internal reviews of issuer financial statements are performed as deemed necessary. In the case of privately issued mortgage-backed securities, the performance of the underlying loans is analyzed as deemed necessary to determine the estimated future cash flows of the securities. Factors considered include the level of subordination, current and estimated future default rates, current and estimated prepayment rates, estimated loss severity rates, geographic concentrations and origination dates of underlying loans. In the case of marketable equity securities, the severity of the unrealized loss, the length of time the unrealized loss has existed, and the issuer’s financial performance are considered.

The following table shows the temporarily impaired securities of the Company’s available-for-sale portfolio at September 30, 2016. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for less than 12 months and a continuous loss position for 12 months or longer. There are 41 and 15 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 282 holdings at September 30, 2016.

	September 30, 2016
	Less than 12 months				12 months or longer				Total
Temporarily Impaired Investments	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. Treasury	$	—	$	—	$	—	$	—	$	—	$	—
SBA Backed Securities		52,809		160		971		2		53,780		162
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		128,839		298		33,439		139		162,278		437
Privately Issued Residential Mortgage-Backed Securities		373		1		430		14		803		15
Obligations Issued by States and Political Subdivisions		—		—		4,298		404		4,298		404
Other Debt Securities		460		40		1,886		114		2,346		154
Total temporarily impaired securities	$	182,481	$	499	$	41,024	$	673	$	223,505	$	1,172

11

The following table shows the temporarily impaired securities of the Company’s available-for-sale portfolio at December 31, 2015. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for less than 12 months and a continuous loss position for 12 months or longer. There are 14 and 11 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 290 holdings at December 31, 2015.

	December 31, 2015
	Less than 12 months				12 months or longer				Total
Temporarily Impaired Investments	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. Treasury	$	1,989	$	10	$	—	$	—	$	1,989	$	10
SBA Backed Securities		1,031		2		—		—		1,031		2
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		26,519		52		49,341		248		75,860		300
Privately Issued Residential Mortgage-Backed Securities		—		—		490		13		490		13
Obligations Issued by States and Political Subdivisions		—		—		3,820		878		3,820		878
Other Debt Securities		497		3		1,373		127		1,870		130
Total temporarily impaired securities	$	30,036	$	67	$	55,024	$	1,266	$	85,060	$	1,333

Note 3. Investment Securities Held-to-Maturity

	September 30, 2016								December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
U.S. Government Sponsored Enterprises	$	165,176	$	2,577	$	16	$	167,737	$	186,734	$	2,234	$	141	$	188,827
SBA Backed Securities		20,926		69		—		20,995		—		—		—		—
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		1,379,089		22,755		1,393		1,400,451		1,252,169		7,547		9,583		1,250,133
Total	$	1,565,191	$	25,401	$	1,409	$	1,589,183	$	1,438,903	$	9,781	$	9,724	$	1,438,960

Included in U.S. Government and Agency Securities are securities pledged to secure public deposits and repurchase agreements at fair value amounting to $1,119,685,000 and $1,004,743,000 at September 30, 2016 and December 31, 2015, respectively. Also included are securities pledged for borrowing at the Federal Home Loan Bank of Boston at fair value amounting to $355,602,000 and $432,965,000 at September 30, 2016 and December 31, 2015, respectively. The Company realized gross gains of $12,000 from the proceeds of $192,000 from the sales of securities held-to-maturity for the nine months ended September 30, 2016. The sales of securities held-to-maturity relate to certain mortgage-backed securities for which the Company had previously collected a substantial portion of its principal investment. There were no sales of held-to-maturity securities for the nine months ended September 30, 2015.

At September 30, 2016 and December 31, 2015, all mortgage-backed securities are obligations of U.S. Government Agencies and Government Sponsored Enterprises. U.S. Government Sponsored Enterprises primarily refer to debt securities of Fannie Mae and Freddie Mac.

12

The following table shows the maturity distribution of the Company’s securities held-to-maturity at September 30, 2016.

	Amortized Cost		Fair Value
	(in thousands)
Within one year	$	15,191	$	15,314
After one but within five years		1,360,309		1,379,055
After five but within ten years		186,544		191,613
More than ten years		3,147		3,201
Total	$	1,565,191	$	1,589,183

The weighted average remaining life of investment securities held-to-maturity at September 30, 2016 was 3.8 years. Included in the weighted average remaining life calculation at September 30, 2016 were $76,745,000 of U.S. Government Sponsored Enterprises obligations that are callable at the discretion of the issuer. The actual maturities, which were used in the table above, of mortgage-backed securities, will differ from the contractual maturities, due to the ability of the issuers to prepay underlying obligations.

As of September 30, 2016 and December 31, 2015, management concluded that the unrealized losses of its investment securities are temporary in nature since they are not related to the underlying credit quality of the issuers, and the Company does not intend to sell these debt securities and it is not likely that it will be required to sell these debt securities before the anticipated recovery of their remaining amortized costs. In making its other-than-temporary impairment evaluation, the Company considered the fact that the principal and interest on these securities are from issuers that are investment grade.

The unrealized loss on U.S. Government Sponsored Enterprises and U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities related primarily to interest rates and not credit quality, and because the Company does not intend to sell any of these securities and it is not likely that it will be required to sell these securities before the anticipated recovery of the remaining amortized cost, the Company does not consider these investments to be other-than-temporarily impaired September 30, 2016 and December 31, 2015.

In evaluating the underlying credit quality of a security, management considers several factors such as the credit rating of the obligor and the issuer, if applicable. Internal reviews of issuer financial statements are performed as deemed necessary.

The following table shows the temporarily impaired securities of the Company’s held-to-maturity portfolio at September 30, 2016. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months or longer. There are 33 and 15 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 357 holdings at September 30, 2016.

	September 30, 2016
	Less Than 12 Months				12 Months or Longer				Total
Temporarily Impaired Investments	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. Government Sponsored Enterprises	$	41,984	$	16	$	—	$	—	$	41,984	$	16
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		162,780		645		57,854		748		220,634		1,393
Total temporarily impaired securities	$	204,764	$	661	$	57,854	$	748	$	262,618	$	1,409

13

The following table shows the temporarily impaired securities of the Company’s held-to-maturity portfolio at December 31, 2015. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for less than 12 months and a continuous loss position for 12 months or longer. There are 101 and 26 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 322 holdings at December 31, 2015.

	December 31, 2015
	Less Than 12 Months				12 Months or Longer				Total
Temporarily Impaired Investments	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. Government Sponsored Enterprises	$	9,859	$	141	$	—	$	—	$	9,859	$	141
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		626,218		6,657		123,864		2,926		750,082		9,583
Total temporarily impaired securities	$	636,077	$	6,798	$	123,864	$	2,926	$	759,941	$	9,724

Note 4. Allowance for Loan Losses

The Company maintains an allowance for loan losses in an amount determined by management on the basis of the character of the loans, loan performance, financial condition of borrowers, the value of collateral securing loans and other relevant factors.

The following table summarizes the changes in the Company’s allowance for loan losses for the periods indicated.

	Three months ended September 30,						Nine months ended September 30,
	2016			2015			2016			2015
	(in thousands)
Allowance for loan losses, beginning of period	$	23,863		$	22,245		$	23,075		$	22,318
Loans charged off		(118	)		(129	)		(298	)		(613	)
Recoveries on loans previously charged-off		93			214			345			425
Net recoveries (charge-offs)		(25	)		85			47			(188	)
Provision charged to expense		375			—			1,175			200
Reclassification to other liabilities*		(5	)		—			(89	)		—
Allowance for loan losses, end of period	$	24,208		$	22,330		$	24,208		$	22,330

* The reclassification relates to allowance for loan losses allocations on unused commitments that have been reclassified to other liabilities.

14

Further information pertaining to the allowance for loan losses for the three months ending September 30, 2016 follows:

	Construction and Land Development			Commercial and Industrial		Municipal			Commercial Real Estate			Residential Real Estate		Consumer			Home Equity			Unallocated		Total
	(in thousands)
Allowance for loan losses:
Balance at June 30, 2016	$	2,234		$	5,842	$	1,801		$	10,650		$	1,302	$	608		$	1,158		$	268	$	23,863
Charge-offs		—			—		—			—			—		(91	)		(27	)		—		(118	)
Recoveries		—			24		—			—			2		67			—			—		93
Provision		(3	)		307		(29	)		(752	)		624		5			155			68		375
Reclassification to other liabilities		—			—		—			—			—		—			(5	)		—		(5	)
Ending balance at September 30, 2016	$	2,231		$	6,173	$	1,772		$	9,898		$	1,928	$	589		$	1,281		$	336	$	24,208
Amount of allowance for loan losses for loans deemed to be impaired	$	4		$	9	$	—		$	143		$	7	$	—		$	—		$	—	$	163
Amount of allowance for loan losses for loans not deemed to be impaired	$	2,227		$	6,164	$	1,772		$	9,755		$	1,921	$	589		$	1,281		$	336	$	24,045
Loans:
Ending balance	$	19,522		$	549,290	$	145,063		$	692,778		$	222,881	$	11,474		$	200,085		$	—	$	1,841,093
Loans deemed to be impaired	$	95		$	399	$	—		$	3,707		$	208	$	—		$	—		$	—	$	4,409
Loans not deemed to be impaired	$	19,427		$	548,891	$	145,063		$	689,071		$	222,673	$	11,474		$	200,085		$	—	$	1,836,684

Further information pertaining to the allowance for loan losses for the nine months ending September 30, 2016 follows:

	Construction and Land Development			Commercial and Industrial			Municipal		Commercial Real Estate			Residential Real Estate			Consumer			Home Equity			Unallocated			Total
	(in thousands)
Allowance for loan losses:
Balance at December 31, 2015	$	2,041		$	5,899		$	994	$	10,589		$	1,320		$	644		$	1,077		$	511		$	23,075
Charge-offs		—			—			—		—			—			(271	)		(27	)		—			(298	)
Recoveries		—			115			—		—			5			225			—			—			345
Provision		193			188			778		(680	)		605			(6	)		272			(175	)		1,175
Reclassification to other liabilities		(3	)		(29	)		—		(11	)		(2	)		(3	)		(41	)		—			(89	)
Ending balance at September 30, 2016	$	2,231		$	6,173		$	1,772	$	9,898		$	1,928		$	589		$	1,281		$	336		$	24,208
Amount of allowance for loan losses for loans deemed to be impaired	$	4		$	9		$	—	$	143		$	7		$	—		$	—		$	—		$	163
Amount of allowance for loan losses for loans not deemed to be impaired	$	2,227		$	6,164		$	1,772	$	9,755		$	1,921		$	589		$	1,281		$	336		$	24,045
Loans:
Ending balance	$	19,522		$	549,290		$	145,063	$	692,778		$	222,881		$	11,474		$	200,085		$	—		$	1,841,093
Loans deemed to be impaired	$	95		$	399		$	—	$	3,707		$	208		$	—		$	—		$	—		$	4,409
Loans not deemed to be impaired	$	19,427		$	548,891		$	145,063	$	689,071		$	222,673		$	11,474		$	200,085		$	—		$	1,836,684

During the three and nine months ending September 30, 2016, the Company’s provision was primarily attributable to an increase in loan balances.

15

Further information pertaining to the allowance for loan losses for the three months ending September 30, 2015 follows:

	Construction and Land Development		Commercial and Industrial			Municipal		Commercial Real Estate			Residential Real Estate		Consumer			Home Equity		Unallocated			Total
	(in thousands)
Allowance for loan losses:
Balance at June 30, 2015	$	1,733	$	4,428		$	1,000	$	11,723		$	722	$	709		$	650	$	1,280		$	22,245
Charge-offs		—		(43	)		—		—			—		(86	)		—		—			(129	)
Recoveries		—		75			—		80			1		58			—		—			214
Provision		126		995			117		(1,086	)		115		(2	)		51		(316	)		—
Ending balance at September 30, 2015	$	1,859	$	5,455		$	1,117	$	10,717		$	838	$	679		$	701	$	964		$	22,330
Amount of allowance for loan losses for loans deemed to be impaired	$	11	$	25		$	—	$	98		$	36	$	—		$	91	$	—		$	261
Amount of allowance for loan losses for loans not deemed to be impaired	$	1,848	$	5,430		$	1,117	$	10,619		$	802	$	679		$	610	$	964		$	22,069
Loans:
Ending balance	$	27,308	$	378,154		$	87,016	$	701,523		$	264,105	$	10,633		$	172,091	$	—		$	1,640,830
Loans deemed to be impaired	$	100	$	539		$	—	$	1,692		$	927	$	—		$	91	$	—		$	3,349
Loans not deemed to be impaired	$	27,208	$	377,615		$	87,016	$	699,831		$	263,178	$	10,633		$	172,000	$	—		$	1,637,481

Further information pertaining to the allowance for loan losses for the nine months ending September 30, 2015 follows:

	Construction and Land Development		Commercial and Industrial			Municipal			Commercial Real Estate			Residential Real Estate		Consumer			Home Equity		Unallocated			Total
	(in thousands)
Allowance for loan losses:
Balance at December 31, 2104	$	1,592	$	4,757		$	1,488		$	11,199		$	776	$	810		$	599	$	1,097		$	22,318
Charge-offs		—		(95	)		—			(298	)		—		(220	)		—		—			(613	)
Recoveries		—		147			—			84			5		189			—		—			425
Provision		267		646			(371	)		(268	)		57		(100	)		102		(133	)		200
Ending balance at September 30, 2015	$	1,859	$	5,455		$	1,117		$	10,717		$	838	$	679		$	701	$	964		$	22,330
Amount of allowance for loan losses for loans deemed to be impaired	$	11	$	25		$	—		$	98		$	36	$	—		$	91	$	—		$	261
Amount of allowance for loan losses for loans not deemed to be impaired	$	1,848	$	5,430		$	1,117		$	10,619		$	802	$	679		$	610	$	964		$	22,069
Loans:
Ending balance	$	27,308	$	378,154		$	87,016		$	701,523		$	264,105	$	10,633		$	172,091	$	—		$	1,640,830
Loans deemed to be impaired	$	100	$	539		$	—		$	1,692		$	927	$	—		$	91	$	—		$	3,349
Loans not deemed to be impaired	$	27,208	$	377,615		$	87,016		$	699,831		$	263,178	$	10,633		$	172,000	$	—		$	1,637,481

16

The Company utilizes a six grade internal loan rating system for commercial real estate, construction and commercial loans as follows:

Loans rated 1-3 (Pass):

Loans in this category are considered “pass” rated loans with low to average risk.

Loans rated 4 (Monitor):

These loans represent classified loans that management is closely monitoring for credit quality. These loans have had or may have minor credit quality deterioration as of September 30, 2016 and December 31, 2015.

Loans rated 5 (Substandard):

Substandard loans represent classified loans that management is closely monitoring for credit quality. These loans have had more significant credit quality deterioration as of September 30, 2016 and December 31, 2015.

Loans rated 6 (Doubtful):

Doubtful loans represent classified loans that management is closely monitoring for credit quality. These loans had more significant credit quality deterioration as of September 30, 2016 and December 31, 2015 and are doubtful for full collection.

Impaired:

Impaired loans represent classified loans that management is closely monitoring for credit quality. A loan is classified as impaired when it is probable that the Company will be unable to collect all amounts due.

The following table presents the Company’s loans by risk rating at September 30, 2016.

	Construction and Land Development		Commercial and Industrial		Municipal		Commercial Real Estate		Total
	(in thousands)
Grade:
1-3 (Pass)	$	12,453	$	548,891	$	145,063	$	688,887	$	1,395,294
4 (Monitor)		6,974		—		—		184		7,158
5 (Substandard)		—		—		—		—		—
6 (Doubtful)		—		—		—		—		—
Impaired		95		399		—		3,707		4,201
Total	$	19,522	$	549,290	$	145,063	$	692,778	$	1,406,653

The following table presents the Company’s loans by risk rating at December 31, 2015.

	Construction and Land Development		Commercial and Industrial		Municipal		Commercial Real Estate		Total
	(in thousands)
Grade:
1-3 (Pass)	$	20,281	$	451,774	$	85,685	$	718,911	$	1,276,651
4 (Monitor)		7,042		18		—		917		7,977
5 (Substandard)		—		—		—		—		—
6 (Doubtful)		—		—		—		—		—
Impaired		98		443		—		1,678		2,219
Total	$	27,421	$	452,235	$	85,685	$	721,506	$	1,286,847

17

The Company has increased its exposure to larger loans to large institutions with publically available credit ratings beginning in 2015. These ratings are tracked as a credit quality indicator for these loans. Credit ratings issued by national organizations were utilized as credit quality indicators as presented in the following table at September 30, 2016 and are included within the total loan portfolio.

	Commercial and Industrial		Municipal		Commercial Real Estate		Total
	(in thousands)
Credit Rating:
Aaa – Aa3	$	331,240	$	67,427	$	6,836	$	405,503
A1 – A3		139,379		33,510		129,853		302,742
Baa1 – Baa3		—		37,088		130,081		167,169
Ba2		—		3,610		—		3,610
Total	$	470,619	$	141,635	$	266,770	$	879,024

Credit ratings issued by national organizations were utilized as credit quality indicators as presented in the following table at December 31, 2015.

	Commercial and Industrial		Municipal		Commercial Real Estate		Total
	(in thousands)
Credit Rating:
Aaa – Aa3	$	234,733	$	63,865	$	7,547	$	306,145
A1 – A3		140,419		7,400		130,872		278,691
Baa1 – Baa3		—		8,890		167,489		176,379
Ba2		—		4,480		—		4,480
Total	$	375,152	$	84,635	$	305,908	$	765,695

The Company utilized payment performance as credit quality indicators for the loan types listed below. The indicators are depicted in the table “aging of past due loans,” below.

Further information pertaining to the allowance for loan losses at September 30, 2016 follows:

	Accruing 30-89 Days Past Due		Non Accrual		Accruing Greater than 90 Days		Total Past Due		Current Loans		Total
	(in thousands)
Construction and land development	$	—	$	95	$	—	$	95	$	19,427	$	19,522
Commercial and industrial		318		49		—		367		548,923		549,290
Municipal		—		—		—		—		145,063		145,063
Commercial real estate		1,313		156		—		1,469		691,309		692,778
Residential real estate		866		656		—		1,522		221,359		222,881
Consumer and overdrafts		24		2		—		26		11,448		11,474
Home equity		563		—		—		563		199,522		200,085
Total	$	3,084	$	958	$	—	$	4,042	$	1,837,051	$	1,841,093

18

Further information pertaining to the allowance for loan losses at December 31, 2015 follows:

	Accruing 30-89 Days Past Due		Non Accrual		Accruing Greater than 90 Days		Total Past Due		Current Loans		Total
	(in thousands)
Construction and land development	$	—	$	99	$	—	$	99	$	27,322	$	27,421
Commercial and industrial		—		60		—		60		452,175		452,235
Municipal		—		—		—		—		85,685		85,685
Commercial real estate		1,462		174		—		1,636		719,870		721,506
Residential real estate		596		1,559		—		2,155		253,191		255,346
Consumer and overdrafts		6		—		—		6		11,317		11,323
Home equity		628		444		—		1,072		176,948		178,020
Total	$	2,692	$	2,336	$	—	$	5,028	$	1,726,508	$	1,731,536

A loan is impaired when, based on current information and events, it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. When a loan is impaired, the Company measures impairment based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except that as a practical expedient, the Company measures impairment based on a loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. Loans are charged-off when management believes that the collectability of the loan’s principal is not probable. The specific factors that management considers in making the determination that the collectability of the loan’s principal is not probable include: the delinquency status of the loan, the fair value of the collateral, if secured, and the financial strength of the borrower and/or guarantors. For collateral dependent loans, the amount of the recorded investment in a loan that exceeds the fair value of the collateral is charged-off against the allowance for loan losses in lieu of an allocation of a specific allowance amount when such an amount has been identified definitively as uncollectible. The Company’s policy for recognizing interest income on impaired loans is contained within Note 1 of the consolidated financial statements contained in the Company’s Annual Report for the fiscal year ended December 31, 2015.

19

The following is information pertaining to impaired loans for September 30, 2016:

	Carrying Value		Unpaid Principal Balance		Required Reserve		Average Carrying Value for 3 Months Ending 9/30/16		Interest Income Recognized for 3 Months Ending 9/30/16		Average Carrying Value for 9 Months Ending 9/30/16		Interest Income Recognized for 9 Months Ending 9/30/16
	(in thousands)
With no required reserve recorded:
Construction and land development	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and industrial		228		414		—		51		2		54		7
Municipal		—		—		—		—		—		—		—
Commercial real estate		593		593		—		594		9		310		30
Residential real estate		97		186		—		101		2		106		6
Consumer		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		—
Total	$	918	$	1,193	$	—	$	746	$	13	$	470	$	43
With required reserve recorded:
Construction and land development	$	95	$	108	$	4	$	96	$	—	$	97	$	—
Commercial and industrial		171		187		9		353		2		367		7
Municipal		—		—		—		—		—		—		—
Commercial real estate		3,114		3,219		143		3,128		31		2,251		64
Residential real estate		111		110		7		111		1		387		4
Consumer		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		36		—
Total	$	3,491	$	3,624	$	163	$	3,688	$	34	$	3,138	$	75
Total:
Construction and land development	$	95	$	108	$	4	$	96	$	—	$	97	$	—
Commercial and industrial		399		601		9		404		4		421		14
Municipal		—		—		—		—		—		—		—
Commercial real estate		3,707		3,812		143		3,722		40		2,561		94
Residential real estate		208		296		7		212		3		493		10
Consumer		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		36		—
Total	$	4,409	$	4,817	$	163	$	4,434	$	47	$	3,608	$	118

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The following is information pertaining to impaired loans for September 30, 2015:

	Carrying Value		Unpaid Principal Balance		Required Reserve		Average Carrying Value for 3 Months Ending 9/30/15		Interest Income Recognized for 3 Months Ending 9/30/15		Average Carrying Value for 9 Months Ending 9/30/15		Interest Income Recognized for 9 Months Ending 9/30/15
	(in thousands)
With no required reserve recorded:
Construction and land development	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and industrial		12		12		—		27		—		36		—
Municipal		—		—		—		—		—		—		—
Commercial real estate		—		—		—		—		—		196		—
Residential real estate		119		204		—		122		2		128		6
Consumer		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		—
Total	$	131	$	216	$	—	$	149	$	2	$	360	$	6
With required reserve recorded:
Construction and land development	$	100	$	108	$	11	$	101	$	—	$	102	$	—
Commercial and industrial		527		728		25		551		5		670		16
Municipal		—		—		—		—		—		—		—
Commercial real estate		1,692		1,789		98		1,700		14		2,809		48
Residential real estate		808		809		36		811		1		817		7
Consumer		—		—		—		—		—		—		—
Home equity		91		91		91		91		—		91		—
Total	$	3,218	$	3,525	$	261	$	3,254	$	20	$	4,489	$	71
Total:
Construction and land development	$	100	$	108	$	11	$	101	$	—	$	102	$	—
Commercial and industrial		539		740		25		578		5		706		16
Municipal		—		—		—		—		—		—		—
Commercial real estate		1,692		1,789		98		1,700		14		3,005		48
Residential real estate		927		1,013		36		933		3		945		13
Consumer		—		—		—		—		—		—		—
Home equity		91		91		91		91		—		91		—
Total	$	3,349	$	3,741	$	261	$	3,403	$	22	$	4,849	$	77

There was one commercial real estate troubled debt restructuring during the nine month period ending September 30, 2016. The pre-modification and post-modification outstanding recorded investment was $2,091,000. The loan was modified for 2016, by reducing the interest rate as well as extending the term on the loan. The financial impact for the modification was $7,000 reduction in principal payments and $2,000 reduction in interest payments for the three month period. The financial impact for the modification was $10,000 reduction in principal payments and $2,000 reduction in interest payments for the nine month period.

There was no troubled debt restructuring during the three and nine month period ended September 30, 2015.

There were no troubled debt restructurings that subsequently defaulted during the three and nine month periods ending September 30, 2016.

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Note 5. Reclassifications Out of Accumulated Other Comprehensive Income (a)

Amount Reclassified from Accumulated Other Comprehensive Income

Details about Accumulated Other Comprehensive Income Components	Three Months Ended September 30, 2016			Three Months Ended September 30, 2015			Affected Line Item in the Statement where Net Income is Presented
	(in thousands)
Unrealized gains and losses on available-for-sale securities	$	19		$	52		Net gains on sales of investments
Tax (expense) or benefit		(7	)		(21	)	Provision for income taxes
Net of tax	$	12		$	31		Net income
Accretion of unrealized losses transferred	$	(809	)	$	(1,436	)	Interest on securities held-to-maturity
Tax (expense) or benefit		282			501		Provision for income taxes
Net of tax	$	(527	)	$	(935	)	Net income
Amortization of defined benefit pension items
Prior-service costs	$	(3	)(b)	$	(2	)(b)	Salaries and employee benefits
Actuarial gains (losses)		(401	)(b)		(352	)(b)	Salaries and employee benefits
Total before tax		(404	)		(354	)	Income before taxes
Tax (expense) or benefit		162			141		Provision for income taxes
Net of tax	$	(242	)	$	(213	)	Net income
Total reclassifications for the period	$	(757	)	$	(1,117	)	Net income
Details about Accumulated Other Comprehensive Income Components	Nine Months Ended September 30, 2016			Nine Months Ended September 30, 2015			Affected Line Item in the Statement where Net Income is Presented
	(in thousands)
Unrealized gains and losses on available-for-sale securities	$	64		$	170		Net gains on sales of investments
Tax (expense) or benefit		(25	)		(68	)	Provision for income taxes
Net of tax	$	39		$	102		Net income
Accretion of unrealized losses transferred	$	(3,490	)	$	(4,141	)	Interest on securities held-to-maturity
Tax (expense) or benefit		1,216			1,444		Provision for income taxes
Net of tax	$	(2,274	)	$	(2,697	)	Net income
Amortization of defined benefit pension items
Prior-service costs	$	(8	)(b)	$	(8	)(b)	Salaries and employee benefits
Actuarial gains (losses)		(1,203	)(b)		(1,056	)(b)	Salaries and employee benefits
Total before tax		(1,211	)		(1,064	)	Income before taxes
Tax (expense) or benefit		484			425		Provision for income taxes
Net of tax	$	(727	)	$	(639	)	Net income
Total reclassifications for the period	$	(2,962	)	$	(3,234	)	Net income, net of tax

(a) Amount in parentheses indicates reductions to net income.

(b) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Employee Benefits footnote (Note 7) for additional details).

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Note 6. Earnings per Share (“EPS”)

Class A and Class B shares participate equally in undistributed earnings. Under the Company’s Articles of Organization, the holders of Class A Common Stock are entitled to receive dividends per share equal to at least 200% of dividends paid, if any, from time to time, on each share of Class B Common Stock.

Diluted EPS includes the dilutive effect of common stock equivalents; basic EPS excludes all common stock equivalents. The Company had no common stock equivalents outstanding for the periods ended September 30, 2015 and 2016.

The following table is a reconciliation of basic EPS and diluted EPS.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands except share and per share data)	2016		2015		2016		2015
Basic EPS Computation:
Numerator:
Net income, Class A	$	5,094	$	4,843	$	14,165	$	13,392
Net income, Class B		1,392		1,323		3,869		3,658
Denominator:
Weighted average shares outstanding, Class A		3,600,729		3,600,729		3,600,729		3,600,729
Weighted average shares outstanding, Class B		1,967,180		1,967,180		1,967,180		1,967,180
Basic EPS, Class A	$	1.41	$	1.35	$	3.93	$	3.72
Basic EPS, Class B		0.71		0.67		1.97		1.86
Diluted EPS Computation:
Numerator:
Net income, Class A	$	5,094	$	4,843	$	14,165	$	13,392
Net income, Class B		1,392		1,323		3,869		3,658
Total net income, for diluted EPS, Class A computation		6,486		6,166		18,034		17,050
Denominator:
Weighted average shares outstanding, basic, Class A		3,600,729		3,600,729		3,600,729		3,600,729
Weighted average shares outstanding, Class B		1,967,180		1,967,180		1,967,180		1,967,180
Weighted average shares outstanding diluted, Class A		5,567,909		5,567,909		5,567,909		5,567,909
Weighted average shares outstanding, Class B		1,967,180		1,967,180		1,967,180		1,967,180
Diluted EPS, Class A	$	1.16	$	1.11	$	3.24	$	3.06
Diluted EPS, Class B		0.71		0.67		1.97		1.86

Note 7. Employee Benefits

The Company provides pension benefits to its employees under a noncontributory, defined benefit plan which is funded on a current basis in compliance with the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”) and recognizes costs over the estimated employee service period.

The Company also has a Supplemental Executive Insurance/Retirement Plan (the “Supplemental Plan”) which is limited to certain officers and employees of the Company. The Supplemental Plan is accrued on a current basis and recognizes costs over the estimated employee service period.

Executive officers of the Company and its subsidiaries who have at least one year of service may participate in the Supplemental Plan. The Supplemental Plan is voluntary and participants are required to contribute to its cost. Life insurance policies, which are owned by the Company, are purchased covering the lives of each participant.

Effective January 1, 2016, the Company changed its estimate of the service and interest components of the net periodic benefit cost. Previously, the Company estimated the service and interest cost components utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation. The new estimate utilizes a full yield curve approach in the estimation of these components by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to their underlying projected cash flows. The new estimate provided a more precise measurement of service and interests costs by improving the correlation between projected benefit cash flows and their corresponding spot rates. The change does not affect the measurement of the Company’s benefit obligations and it is accounted for as a change in accounting estimate, which is applied prospectively.

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Components of Net Periodic Benefit Cost (Credit) for the Three Months Ended September 30,

	Pension Benefits						Supplemental Insurance/     Retirement Plan
	2016			2015			2016		2015
	(in thousands)
Service cost	$	318		$	336		$	455	$	397
Interest		340			394			334		341
Expected return on plan assets		(694	)		(688	)		—		—
Recognized prior service cost (benefit)		(26	)		(26	)		29		29
Recognized net actuarial losses		200			203			200		150
Net periodic benefit (credit) cost	$	138		$	219		$	1,018	$	917

Components of Net Periodic Benefit Cost (Credit) for the Nine Months Ended September 30,

	Pension Benefits						Supplemental Insurance/     Retirement Plan
	2016			2015			2016		2015
	(in thousands)
Service cost	$	954		$	1,008		$	1,366	$	1,191
Interest		1,020			1,182			1,002		1,023
Expected return on plan assets		(2,082	)		(2,064	)		—		—
Recognized prior service cost (benefit)		(78	)		(78	)		87		87
Recognized net actuarial losses		600			610			600		449
Net periodic benefit (credit) cost	$	414		$	658		$	3,055	$	2,750

Contributions

The company intends to contribute $2,075,000 to the Pension Plan in 2016. As of September 30, 2016, $1,825,000 has been contributed.

Note 8. Fair Value Measurements

The Company follows FASB ASC 820-10, Fair Value Measurements and Disclosures, (formerly SFAS 157, “Fair Value Measurements,”) which among other things, requires enhanced disclosures about assets and liabilities carried at fair value. ASC 820-10 establishes a hierarchal disclosure framework associated with the level of pricing observability utilized in measuring financial instruments at fair value. The three broad levels of the hierarchy are as follows:

Level I – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The type of financial instruments included in Level I are highly liquid cash instruments with quoted prices such as G-7 government, agency securities, listed equities and money market securities, as well as listed derivative instruments.

Level II – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these financial instruments include cash instruments for which quoted prices are available but traded less frequently, derivative instruments whose fair value have been derived using a model where inputs to the model are directly observable in the market, or can be derived principally from or corroborated by observable market data, and instruments that are fair valued using other financial instruments, the parameters of which can be directly observed. Instruments which are generally included in this category are corporate bonds and loans, mortgage whole loans and municipal bonds.

Level III – Instruments that have little to no pricing observability as of the reported date. These financial instruments do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. Instruments that are included in this category generally include certain commercial mortgage loans, certain private equity investments, and distressed debt and non-investment grade residual interests in securitizations.

24

The results of the fair value hierarchy as of September 30, 2016, are as follows:

Financial Instruments Measured at Fair Value on a Recurring Basis:

	Securities AFS Fair Value Measurements Using
	Carrying Value		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
	(in thousands)
U.S. Treasury	$	2,000	$	—	$	2,000	$	—
U.S. Government Sponsored Enterprises		15,009		—		15,009		—
SBA Backed Securities		58,345		—		58,345		—
U.S. Government Agency and Sponsored Mortgage Backed Securities		264,454		—		264,454		—
Privately Issued Residential Mortgage Backed Securities		1,177		—		1,177		—
Obligations Issued by States and Political Subdivisions		179,911		—		—		179,911
Other Debt Securities		4,961		—		4,961		—
Equity Securities		275		275		—		—
Total	$	526,132	$	275	$	345,946	$	179,911
Financial Instruments Measured at Fair Value on a Non-recurring Basis:
Impaired Loans	$	251	$	—	$	—	$	251

Impaired loan balances represent those collateral dependent loans where management has estimated the credit loss by comparing the loan’s carrying value against the expected realizable fair value of the collateral. Fair value is generally determined through a review process that includes independent appraisals, discounted cash flows, or other external assessments of the underlying collateral, which generally include various Level 3 inputs which are not observable. The Company discounts the fair values, as appropriate, based on management’s observations of the local real estate market for loans in this category.

Appraisals, discounted cash flows and real estate tax assessments are reviewed quarterly. There is no specific policy regarding how frequently appraisals will be updated. Adjustments are made to appraisals and real estate tax assessments based on management’s estimate of changes in real estate values. Within the past twelve months there have been no updated appraisals, however, all impaired loans have been reviewed during the past quarter using either a discounted cash flow analysis, appraisal of collateral or other type of real estate tax assessment. The types of adjustments that are made to specific provisions (credits) relate to impaired loans recognized for the three and nine month periods ended September 30, 2016 amounted to ($7,000) and ($143,000), respectively.

There were no transfers between level 1, 2 and 3 for the nine months ended September 30, 2016. There were no liabilities measured at fair value on a recurring or nonrecurring basis during the nine month period ended September 30, 2016.

25

The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands). Management continues to monitor the assumptions used to value the assets listed below.

Asset	Fair Value		Valuation Technique	Unobservable Input	Unobservable Input Value or Range
Securities AFS (4)	$	179,911	Discounted cash flow	Discount rate	0%-1% (3)
Impaired Loans	$	251	Appraisal of collateral (1)	Appraisal adjustments (2)	0%-30% discount

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses.

(3) Weighted averages.

(4) Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value. There was one auction rate security whose fair value is based on the evaluation of the underlying issuer, prevailing interest rates and market liquidity.

The changes in Level 3 securities for the nine month period ended September 30, 2016 are shown in the table below:

	Auction Rate Securities		Obligations Issued by States & Political Subdivisions			Equity Securities			Total
	(in thousands)
Balance at December 31, 2015	$	3,820	$	153,140		$	37		$	156,997
Purchases		—		181,752			—			181,752
Maturities and calls		—		(159,116	)		(37	)		(159,153	)
Amortization		—		(163	)		—			(163	)
Changes in fair value		478		—			—			478
Balance at September 30, 2016	$	4,298	$	175,613		$	—		$	179,911

The amortized cost of Level 3 securities was $180,315,000 at September 30, 2016 with an unrealized loss of $404,000. The securities in this category are generally municipal securities with no readily determinable fair value or failed auction rate securities. Management evaluated the fair value of these securities based on an evaluation of the underlying issuer, prevailing rates and market liquidity.

The changes in Level 3 securities for the nine month period ended September 30, 2015, are shown in the table below:

	Auction Rate Securities		Obligations Issued by States & Political Subdivisions			Equity Securities			Total
	(in thousands)
Balance at December 31, 2014	$	3,820	$	92,964		$	102		$	96,886
Purchases		—		166,339			—			166,339
Maturities and calls		—		(115,989	)		(65	)		(116,054	)
Amortization		—		(35	)		—			(35	)
Changes in fair value		—		—			—			—
Balance at September 30, 2015	$	3,820	$	143,279		$	37		$	147,136

The amortized cost of Level 3 securities was $148,012,000 at September 30, 2015 with an unrealized loss of $876,000. The securities in this category are generally equity investments, municipal securities with no readily determinable fair value or failed auction rate securities. Management evaluated the fair value of these securities based on an evaluation of the underlying issuer, prevailing rates and market liquidity.

26

The results of the fair value hierarchy as of December 31, 2015, are as follows:

Financial Instruments Measured at Fair Value on a Recurring Basis:

	Securities AFS Fair Value Measurements Using
	Carrying Value		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
	(in thousands)
U.S. Treasury	$	1,989	$	—	$	1,989	$	—
U.S. Government Sponsored Enterprises		—		—		—		—
SBA Backed Securities		5,989		—		5,989		—
U.S. Government Agency and Sponsored Mortgage Backed Securities		233,526		—		233,526		—
Privately Issued Residential Mortgage Backed Securities		1,434		—		1,434		—
Obligations Issued by States and Political Subdivisions		156,960		—		—		156,960
Other Debt Securities		4,473		—		4,473		—
Equity Securities		252		215		—		37
Total	$	404,623	$	215	$	247,411	$	156,997
Financial Instruments Measured at Fair Value on a Non-recurring Basis:
Impaired Loans	$	1,056	$	—	$	—	$	1,056

Impaired loan balances represent those collateral dependent loans where management has estimated the credit loss by comparing the loan’s carrying value against the expected realizable fair value of the collateral. Fair value is generally determined through a review process that includes independent appraisals, discounted cash flows, or other external assessments of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. The Company discounts the fair values, as appropriate, based on management’s observations of the local real estate market for loans in this category.

Appraisals, discounted cash flows and real estate tax assessments are reviewed quarterly. There is no specific policy regarding how frequently appraisals will be updated. Adjustments are made to appraisals and real estate tax assessments based on management’s estimate of changes in real estate values. Within the past twelve months there have been no updated appraisals, however, all impaired loans have been reviewed during the past quarter using either a discounted cash flow analysis, appraisal of collateral or other type of real estate tax assessment. The types of adjustments that are made to specific provisions (credits) relate to impaired loans recognized for 2015 for the estimated credit loss amounted to ($165,000).

There were no transfers between level 1, 2 and 3 for the year ended December 31, 2015. There were no liabilities measured at fair value on a recurring or nonrecurring basis during the year ended December 31, 2015.

The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands). Management continues to monitor the assumptions used to value the assets listed below.

Asset	Fair Value		Valuation Technique	Unobservable Input	Unobservable Input     Value or Range
Securities AFS (4)	$	156,997	Discounted cash flow	Discount rate	0%-1% (3)
Impaired Loans	$	1,056	Appraisal of collateral (1)	Appraisal adjustments (2)	0%-30% discount

27

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses.

(3) Weighted averages

(4) Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value. There was one auction rate security whose fair value is based on the evaluation of the underlying issuer, prevailing interest rates and market liquidity.

Note 9. Fair Values of Financial Instruments

The following methods and assumptions were used by the Company in estimating fair values of its financial instruments. Excluded from this disclosure are all nonfinancial instruments. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company.

The assumptions used below are expected to approximate those that market participants would use in valuing these financial instruments.

Fair value estimates are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of timing, amount of expected future cash flows and the credit standing of the issuer. Such estimates do not consider the tax impact of the realization of unrealized gains or losses. In some cases, the fair value estimates cannot be substantiated by comparison to independent markets. In addition, the disclosed fair value may not be realized in the immediate settlement of the financial instrument. Care should be exercised in deriving conclusions about our business, its value or financial position based on the fair value information of financial instruments presented below.

Securities held-to-maturity: The fair values of these securities were based on quoted market prices, where available, as provided by third-party investment portfolio pricing vendors. If quoted market prices were not available, fair values provided by the vendors were based on quoted market prices of comparable instruments in active markets and/or based on a matrix pricing methodology which employs The Bond Market Association’s standard calculations for cash flow and price/yield analysis, live benchmark bond pricing and terms/condition data available from major pricing sources. Management regards the inputs and methods used by third party pricing vendors to be “Level 2 inputs and methods” as defined in the “fair value hierarchy” provided by FASB.

Loans Held-for-Sale: Fair value is measured using quoted market prices when available. These assets are typically categorized as Level 1. If quoted market prices are not available, comparable market values may be utilized. These assets are typically categorized as Level 2.

Loans: For variable-rate loans, that reprice frequently and with no significant change in credit risk, fair values are based on carrying amounts. The fair value of other loans is estimated using discounted cash flow analysis, based on interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Incremental credit risk for nonperforming loans has been considered.

Time deposits: The fair value of time deposits was estimated using a discounted cash flow approach that applies prevailing market interest rates for similar maturity instruments. The fair values of the Company’s time deposit liabilities do not take into consideration the value of the Company’s long-term relationships with depositors, which may have significant value.

Other borrowed funds: The fair value of other borrowed funds is based on the discounted value of contractual cash flows. The discount rate used is estimated based on the rates currently offered for other borrowed funds of similar remaining maturities.

Subordinated debentures: The fair value of subordinated debentures is based on the discounted value of contractual cash flows. The discount rate used is estimated based on the rates currently offered for other subordinated debentures of similar remaining maturities.

28

The following presents (in thousands) the carrying amount, estimated fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2016 and December 31, 2015. This table excludes financial instruments for which the carrying amount approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, short-term investments, FHLBB stock and accrued interest receivable. Financial liabilities for which the fair value approximates carrying value include non-maturity deposits, short-term borrowings and accrued interest payable.

	Carrying Amount		Estimated Fair Value		Fair Value Measurements Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
	(in thousands)
September 30, 2016
Financial assets:
Securities held-to-maturity	$	1,565,191	$	1,589,183	$	—	$	1,589,183	$	—
Loans (1)		1,816,885		1,830,287		—		—		1,830,287
Financial liabilities:
Time deposits		454,631		457,797		—		457,797		—
Other borrowed funds		293,000		302,163		—		302,163		—
Subordinated debentures		36,083		36,083		—		—		36,083
December 31, 2015
Financial assets:
Securities held-to-maturity	$	1,438,903	$	1,438,960	$	—	$	1,438,960	$	—
Loans (1)		1,708,461		1,677,270		—		—		1,677,270
Financial liabilities:
Time deposits		473,426		474,046		—		474,046		—
Other borrowed funds		368,000		372,209		—		372,209		—
Subordinated debentures		36,083		36,083		—		—		36,083

(1) Comprised of loans (including collateral dependent impaired loans), net of deferred loan costs and the allowance for loan losses.

Note 10. Recent Accounting Developments

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU is intended to create a single source of revenue guidance which is more principles based than current revenue guidance. The guidance affects any entity that either enters into contracts with customers to transfer goods or services, or enters into contracts for the transfer of non-financial assets, unless those contracts are within the scope of other standards. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” to amend the effective date of ASU 2014-09. The amendments in ASU 2014-09 are effective for annual and interim periods within fiscal years beginning after December 15, 2017. Earlier adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The FASB has since issued additional related ASUs amendments intended to clarify certain aspects and improve understanding of the implementation guidance of Topic 606 but do not change the core principles of the guidance in Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements of Topic 606. The Company is currently evaluating the potential impact of the ASU and its amendments on the Company’s financial statements and results of operations.

In January 2016, FASB issued ASU 2016-1, “Financial Instruments-Overall” (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities. This ASU significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods therein. The Company is currently assessing the applicability of this ASU and has not determined the impact, if any, as of September 30, 2016.

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In February 2016, the FASB issued ASU 2016-02, Leases. This ASU requires lessees to put most leases on their balance sheet but recognize expenses on their income statements in a manner similar to today’s accounting. This ASU also eliminates today’s real estate-specific provisions for all companies. For lessors, this ASU modifies the classification criteria and the accounting for sales-type and direct financing leases. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods therein. Early adoption is permitted. The Company is currently assessing the applicability of this ASU and has not determined the impact, if any, as of September 30, 2016.

In March 2016, the FASB issued ASU 2016-07, Investments—Equity Method and Joint Ventures (Topic 323) Simplifying the Transition to the Equity Method of Accounting. This ASU requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. This ASU is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The effect of this update is not expected to have a material impact on the Company’s consolidated financial position.

In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This ASU was issued as part of the FASB Simplification Initiative which intends to reduce the complexity of GAAP while improving usefulness to users. There are eight main items in this ASU that contribute to the simplification of share-based accounting. For public entities, this ASU is effective for the fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. Management is currently assessing the applicability of ASU 2016-09 and has not determined the impact, if any, as of September 30, 2016.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU was issued to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently assessing this ASU and has not determined the impact, if any, as of September 30, 2016.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 326) Classification of Certain Cash Receipts and Cash Payments. Stakeholders indicated that there is diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. This ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is currently assessing the applicability of this ASU and has not determined the impact, if any, as of September 30, 2016.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Executive Overview

Century Bancorp, Inc. (together with its bank subsidiary, unless the context otherwise requires, the “Company”) is a Massachusetts state-chartered bank holding company headquartered in Medford, Massachusetts. The Company is a Massachusetts corporation formed in 1972 and has one banking subsidiary (the “Bank”): Century Bank and Trust Company formed in 1969. At September 30, 2016, the Company had total assets of $4.3 billion. Currently, the Company operates 27 banking offices in 20 cities and towns in Massachusetts, ranging from Braintree in the south to Andover in the north. The Bank’s customers consist primarily of small and medium-sized businesses and retail customers in these communities and surrounding areas, as well as local governments and institutions throughout Massachusetts, New Hampshire, Rhode Island, Connecticut and New York.

The Company’s results of operations are largely dependent on net interest income, which is the difference between the interest earned on loans and securities and interest paid on deposits and borrowings. The results of operations are also affected by the level of income and fees from loans, deposits, as well as operating expenses, the provision for loan losses, the impact of federal and state income taxes and the relative levels of interest rates and economic activity.

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The Company offers a wide range of services to commercial enterprises, state and local governments and agencies, non-profit organizations and individuals. It emphasizes service to small and medium sized businesses and retail customers in its market area. In recent quarters, the Company has increased business to larger institutions, specifically, healthcare and higher education. The Company makes commercial loans, real estate and construction loans and consumer loans, and accepts savings, time, and demand deposits. In addition, the Company offers its corporate and institutional customers automated lock box collection services, cash management services and account reconciliation services, and actively promotes the marketing of these services to the municipal market. Also, the Company provides full service securities brokerage services through a program called Investment Services at Century Bank, which is supported by LPL Financial, a third party full-service securities brokerage business.

The Company has municipal cash management client engagements in Massachusetts, New Hampshire and Rhode Island comprising of approximately 250 government entities.

Net income for the quarter ended September 30, 2016 was $6,486,000, or $1.16 per Class A share diluted, compared to net income of $6,166,000, or $1.11 per Class A share diluted, for the quarter ended September 30, 2015. Net income for the nine months ended September 30, 2016 was $18,034,000, or $3.24 per Class A share diluted, compared to net income of $17,050,000, or $3.06 per Class A share diluted, for the nine months ended September 30, 2015.

Earnings per share (EPS) for each class of stock and time period is as follows:

	Three Months Ended September 30,
	2016		2015
Basic EPS – Class A common	$	1.41	$	1.35
Basic EPS – Class B common	$	0.71	$	0.67
Diluted EPS – Class A common	$	1.16	$	1.11
Diluted EPS – Class B common	$	0.71	$	0.67
	Nine Months Ended September 30,
	2016		2015
Basic EPS – Class A common	$	3.93	$	3.72
Basic EPS – Class B common	$	1.97	$	1.86
Diluted EPS – Class A common	$	3.24	$	3.06
Diluted EPS – Class B common	$	1.97	$	1.86

Net interest income totaled $55,320,000 for the nine months ended September 30, 2016 compared to $52,737,000 for the same period in 2015. The 4.9% increase in net interest income for the period is primarily due to an increase in average earning assets. The net interest margin decreased from 2.20% on a fully taxable equivalent basis for the first nine months of 2015 to 2.15% for the same period in 2016. This was primarily the result of a decrease in rates on earning assets. The average balances of earning assets increased by 9.1% combined with a similar increase in average deposits. Also, interest expense increased 12.3% as a result of an increase in deposit balances.

The trends in the net interest margin are illustrated in the graph below:

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The net interest margin declined slightly throughout 2014 and the first quarter of 2015. During the second and third quarter of 2015 the net interest margin increased primarily as a result of an increase in higher yielding assets as well as prepayment penalties collected. The increase in higher yielding assets was primarily the result of increased purchases of securities held-to-maturity. The margin decreased during the fourth quarter of 2015 primarily as a result of lower yielding loan originations. The margin increased during the first quarter of 2016 primarily as a result of an increase in rates on earning assets. The margin decreased during the second and third quarters of 2016 primarily as a result of a decrease in rates on earning assets.

While management will continue its efforts to improve the net interest margin, there can be no assurance that certain factors beyond its control, such as the prepayment of loans and changes in market interest rates, will continue to positively impact the net interest margin.

The provision for loan losses increased by $975,000 from $200,000 for the nine months ended September 30, 2015 to $1,175,000 for the same period in 2016, primarily as a result of an increase in loan balances. Refer to the allowance for loan loss section of the management discussion and analysis for additional discussion. Non-performing assets totaled $958,000 at September 30, 2016, compared to $2,336,000 at December 31, 2015.

For the first nine months of 2016, the Company’s effective income tax rate was 0.2% compared to 3.6% for last year’s corresponding period. The effective income tax rate decreased primarily as a result of an increase in tax-exempt income.

During March 2014, the Company entered into a lease agreement to open a branch located on Boylston Street in Boston, Massachusetts. This property is leased from an entity affiliated with Marshall M. Sloane, Chairman of the Board of the Company. This agreement was approved by the Board of Directors in the absence of the Chairman of the Board. The branch opened on April 22, 2015. The deposits from the Kenmore Square, Boston, Massachusetts branch, which closed on September 30, 2014, were moved to the new Boylston Street branch.

During June 2016, the Company entered into a lease agreement to open a new branch located in Wellesley, Massachusetts. The Company will close its existing Wellesley branch and transfer the accounts to the new branch. The new branch is expected to open during the fourth quarter of 2016.

Recent Market Developments

The financial services industry continues to face challenges in the aftermath of the recent national and global economic crisis. Since June 2009, the U.S. economy has been recovering from the most severe recession and financial crisis since the Great Depression. There have been some improvements in private sector employment, industrial production and U.S. exports; nevertheless, the pace of economic recovery has been slow. Financial markets have improved since the depths of the crisis but are still unsettled and volatile. There is continued concern about the U.S. economic outlook.

On July 21, 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Act”) became law. The Act was intended to address many issues arising in the recent financial crisis and is exceedingly broad in scope, affecting many aspects of bank and financial market regulation. The Act requires, or permits by implementing regulation, enhanced prudential standards for banks and bank holding companies inclusive of capital, leverage, liquidity, concentration and exposure measures. In addition, traditional bank regulatory principles, such as restrictions on transactions with affiliates and insiders were enhanced. The Act also contains reforms of consumer mortgage lending practices and creates a Bureau of Consumer Financial Protection, which is granted broad authority over consumer financial practices of banks and others. It is expected as the specific new or incremental requirements applicable to the Company become effective that the costs and difficulties of remaining compliant with all such requirements will increase. The Act broadened the base for FDIC assessments to average consolidated assets less tangible equity of financial institutions and also permanently raises the current standard maximum FDIC deposit insurance amount to $250,000. The Act extended unlimited deposit insurance on non-interest bearing transaction accounts through December 31, 2012. In addition, the Act added a new Section 13 to the Bank Holding Company Act, the so-called “Volcker Rule,” (the “Rule”) which generally restricts certain banking entities such as the Company and its subsidiaries or affiliates, from engaging in proprietary trading activities and owning equity in or sponsoring any private equity or hedge fund. The Rule became effective July 21, 2012. The final implementing regulations for the Rule were issued by various regulatory agencies in December, 2013 and under an extended conformance regulation compliance must be achieved by July 21, 2015. The conformance period for investments in and relationships with certain “legacy covered funds” has been extended to July 31, 2017. Under the Rule, the Company may be restricted from engaging in proprietary trading, investing in third party hedge or private equity funds or sponsoring new funds unless it qualifies for an exemption from the rule. The Company has little involvement in prohibited proprietary trading or investment activities in covered funds and the Company does not expect that complying with the requirements of the Rule will have any material effect on the Company’s financial condition or results of operation.

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Federal banking regulators have issued risk-based capital guidelines, which assign risk factors to asset categories and off-balance-sheet items. Also, the Basel Committee has issued capital standards entitled “Basel III: A global regulatory framework for more resilient banks and banking systems” (“Basel III”). The Federal Reserve Board has finalized its rule implementing the Basel III regulatory capital framework. The rule that came into effect in January 2015 sets the Basel III minimum regulatory capital requirements for all organizations. It includes a new common equity Tier I ratio of 4.5 percent of risk-weighted assets, raises the minimum Tier I capital ratio from 4 percent to 6 percent of risk-weighted assets and would set a new conservation buffer of 2.5 percent of risk-weighted assets. The implementation of the framework did not have a material impact on the Company’s financial condition or results of operations.

Financial Condition

Loans

On September 30, 2016, total loans outstanding were $1,841,093,000, up by $109,557,000 from the total on December 31, 2015. At September 30, 2016, commercial real estate loans accounted for 37.6% and residential real estate loans, including home equity loans, accounted for 23.0% of total loans.

Commercial real estate loans decreased to $692,778,000 at September 30, 2016 from $721,506,000, primarily as a result of loan payoffs. Residential real estate loans decreased to $222,881,000 at September 30, 2016 from $255,346,000 at December 31, 2015, primarily as a result of loan sales. Home equity loans increased to $200,085,000 at September 30, 2016 from $178,020,000 at December 31, 2015, primarily as a result of a home equity loan promotion.

Commercial and industrial loans increased to $549,290,000 at September 30, 2016 from $452,235,000 at December 31, 2015, primarily as a result of an increase in larger loan originations to large institutions. Construction loans decreased to $19,522,000 at September 30, 2016 from $27,421,000 on December 31, 2015, primarily from payoffs of existing loans. Municipal loans increased to $145,063,000 from $85,685,000, primarily as a result of originations to large municipal organizations. In recent quarters, the Company has increased business to larger institutions, specifically, healthcare, higher education, and municipal organizations. Further discussion relating to changes in portfolio composition is discussed in the allowance for loan loss section of the management discussion and analysis.

Allowance for Loan Losses

The allowance for loan loss at September 30, 2016 was $24,208,000 as compared to $23,075,000 at December 31, 2015. The level of the allowance for loan losses to total loans was 1.31% at September 30, 2016 and 1.33% at December 31, 2015.

During 2015, the Company enhanced its approach to the development of the historical loss factors and qualitative factors used on certain loan portfolios. The methodology enhancement was in response to the changes in the risk characteristics of the Company’s new loan originations, as the Company has continued to increase its exposure to larger loan originations to large institutions with strong credit quality. The Company has limited internal loss history experience with these types of loans, and has determined a more appropriate representation of loss expectation is to utilize external historical loss factors based on public credit ratings, as there is a great deal of default and loss data available on these types of loans from the credit rating agencies. As of June 30, 2015, the Company incorporated this information into the development of the historical loss rates for these loan types. During the first nine months of 2016, the Company’s loan portfolio risk profile has remained relatively consistent with year-end. There have been no changes to the allowance methodology which has resulted in a relatively stable ratio of allowance for loan losses to total loans.

In addition, the Company monitors the outlook for the industries in which these institutions operate. Healthcare and higher education are the primary industries. The Company also monitors the volatility of the losses within the historical data.

By combining the credit rating, the industry outlook and the loss volatility, the Company arrives at the quantitative loss factor for each credit grade.

For a large loan to large institutions with publically available credit ratings the Company tracks these ratings. These ratings are tracked as a credit quality indicator for these loans. Credit ratings issued by national organizations were utilized as credit quality indicators as presented in the following table at September 30, 2016.

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	Commercial and Industrial		Municipal		Commercial Real Estate		Total
	(in thousands)
Credit Rating:
Aaa – Aa3	$	331,240	$	67,427	$	6,836	$	405,503
A1 – A3		139,379		33,510		129,853		302,742
Baa1 – Baa3		—		37,088		130,081		167,169
Ba2		—		3,610		—		3,610
Total	$	470,619	$	141,635	$	266,770	$	879,024

Credit ratings issued by national organizations are presented in the following table at December 31, 2015.

	Commercial and Industrial		Municipal		Commercial Real Estate		Total
	(in thousands)
Credit Rating:
Aaa – Aa3	$	234,733	$	63,865	$	7,547	$	306,145
A1 – A3		140,419		7,400		130,872		278,691
Baa1 – Baa3		—		8,890		167,489		176,379
Ba2		—		4,480		—		4,480
Total	$	375,152	$	84,635	$	305,908	$	765,695

The allowance for loan losses is an estimate of the amount needed for an adequate reserve to absorb losses in the existing loan portfolio. This amount is determined by an evaluation of the loan portfolio, including input from an independent organization engaged to review selected larger loans, a review of loan experience and current economic conditions. Although the allowance is allocated between categories, the entire allowance is available to absorb losses attributable to all loan categories.

The following table summarizes the changes in the Company’s allowance for loan losses for the periods indicated.

	Three months ended September 30,						Nine months ended September 30,
	2016			2015			2016			2015
	(in thousands)
Allowance for loan losses, beginning of period	$	23,863		$	22,245		$	23,075		$	22,318
Loans charged off		(118	)		(129	)		(298	)		(613	)
Recoveries on loans previously charged-off		93			214			345			425
Net recoveries (charge-offs)		(25	)		85			47			(188	)
Provision charged to expense		375			—			1,175			200
Reclassification to other liabilities		(5	)		—			(89	)		—
Allowance for loan losses, end of period	$	24,208		$	22,330		$	24,208		$	22,330

The Company may experience increased levels of nonaccrual loans if borrowers are negatively impacted by future negative economic conditions. Management continually monitors trends in the loan portfolio to determine the appropriate level of allowance for loan losses. At the current time, management believes that the allowance for loan losses is adequate.

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Nonperforming Assets

The following table sets forth information regarding nonperforming assets held by the Bank at the dates indicated:

	September 30, 2016			December 31, 2015
	(dollars in thousands)
Nonaccruing loans	$	958		$	2,336
Total nonperforming assets	$	958		$	2,336
Loans past due 90 days or more and still accruing	$	—		$	—
Nonaccruing loans as a percentage of total loans		0.05	%		0.13	%
Nonperforming assets as a percentage of total assets		0.02	%		0.06	%
Accruing troubled debt restructures	$	4,104		$	2,893

There was one commercial real estate troubled debt restructuring during the nine month period ending September 30, 2016. The pre-modification and post-modification outstanding recorded investment was $2,091,000. The loan was modified for 2016, by reducing the interest rate as well as extending the term on the loan. The financial impact for the modification was $10,000 reduction in principal payments and $2,000 reduction in interest payments.

There was no troubled debt restructuring during the nine month period ended September 30, 2015.

Cash and Cash Equivalents

Cash and cash equivalents decreased from $220,724,000 to $218,875,000 during the first nine months of 2016. These balances have remained relatively stable.

Short-term Investments

Short-term investments remained stable during the nine-month period.

Investments

Management continually evaluates its investment alternatives in order to properly manage the overall balance sheet mix. The timing of purchases, sales and reinvestments, if any, will be based on various factors including expectation of movements in market interest rates, deposit flows and loan demand. Notwithstanding these events, it is the intent of management to grow the earning asset base mainly through loan originations while funding this growth through a mix of retail deposits, FHLB advances, and retail repurchase agreements.

Securities Available-for-Sale (at Fair Value)

The securities available-for-sale portfolio totaled $526,132,000 at September 30, 2016, an increase of 30.0% from December 31, 2015. The portfolio increased mainly as a result of purchases of securities available-for-sale totaling $328,565,000 for the nine months ended September 30, 2016. The purchases were offset by sales and maturities of $208,401,000. The portfolio is concentrated in United States Government Sponsored Enterprises, Mortgage-backed Securities and Obligations issued by States and Political Subdivisions and had an estimated weighted average remaining life of 3.6 years.

At September 30, 2016, 65.8% of the Company’s securities available-for-sale are classified as Level 2. The fair values of these securities are generally obtained from a pricing service, which provides the Company with a description of the inputs generally utilized for each type of security. These inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. Market indicators and industry and economic events are also monitored.

Securities available-for-sale totaling $179,911,000, or 34.2% of securities available-for-sale are classified as Level 3. These securities are generally municipal securities with no readily determinable fair value. The securities are carried at cost which approximates fair value. A periodic review of underlying financial statements and credit ratings is performed to assess the appropriateness of these valuations.

During the first nine months of 2016, net unrealized losses on the securities available-for-sale increased to $630,000 from a net unrealized loss of $354,000 at December 31, 2015. The following table sets forth the fair value of securities available-for-sale at the dates indicated.

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	September 30, 2016		December 31, 2015
	(in thousands)
U.S. Treasury	$	2,000	$	1,989
U.S. Government Sponsored Enterprises		15,009		—
SBA Backed Securities		58,345		5,989
U.S Government Agency and Sponsored Enterprise Mortgage-backed Securities		264,454		233,526
Privately Issued Residential Mortgage-backed Securities		1,177		1,434
Obligations issued by States and Political Subdivisions		179,911		156,960
Other Debt Securities		4,961		4,473
Equity Securities		275		252
Total Securities Available–for-Sale	$	526,132	$	404,623

During the first nine months of 2016, the Company capitalized on favorable market conditions and realized $52,000 of net gain on the sale of an investment. The sale represented three US Government Agency and Sponsored Mortgage-Backed securities totaling $2,376,000.

Securities Held-to-Maturity (at Amortized Cost)

The securities held-to-maturity portfolio totaled $1,565,191,000 on September 30, 2016, an increase of 8.8% from December 31, 2015. Purchases of securities held-to-maturity totaled $441,756,000 for the nine months ended September 30, 2016. The purchases were offset by sales and maturities of $319,007,000. The portfolio is concentrated in United States Government Sponsored Enterprises and Mortgage-backed Securities and had an estimated weighted average remaining life of 3.8 years. The following table sets forth the fair value of securities held-to-maturity at the dates indicated.

	September 30, 2016		December 31, 2015
	(in thousands)
U.S. Government Sponsored Enterprises	$	165,176	$	186,734
SBA Backed Securities		20,926		—
U.S. Government Agency and Sponsored Enterprise Mortgage-backed Securities		1,379,089		1,252,169
Total Securities Held-to-Maturity	$	1,565,191	$	1,438,903

At September 30, 2016 and December 31, 2015, all mortgage-backed securities are obligations of U.S. Government Sponsored Enterprises. The company realized a gain from the sale of a security of $12,000 from proceeds of held-to-maturity securities of $192,000 for the nine months ending September 30, 2016. The sale from securities held-to-maturity relate to a mortgage-backed security for which the Company had previously collected a substantial portion (greater than 90%) of its principal investment.

Debt securities of Government Sponsored Enterprises primarily refer to debt securities of Fannie Mae and Freddie Mac.

Federal Home Loan Bank of Boston Stock

The Bank, as a member of the Federal Home Loan Bank of Boston (“FHLBB”), is required to maintain an investment in capital stock of the FHLBB. Based on redemption provisions, the stock has no quoted market value and is carried at cost. At its discretion, the FHLBB may declare dividends on the stock. The Company reviews for impairment based on the ultimate recoverability of the cost basis in the stock. During the first nine months of 2016, the FHLBB redeemed $10,276,000 and the Company purchased $2,617,000 of FHLBB stock. As of September 30, 2016, no impairment has been recognized.

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Deposits and Borrowed Funds

On September 30, 2016, deposits totaled $3,461,113,000, representing a 12.6% increase from December 31, 2015. Total deposits increased primarily as a result of increases in demand deposits, savings and NOW deposits, and money market accounts. Savings and NOW deposits increased, mainly as a result of municipal deposits, as the Company continued to offer competitive rates for these types of deposits during the first nine months of the year. Demand deposits and money market accounts increased primarily as a result of increases in corporate accounts. This was offset, somewhat by a decrease in time deposits.

Borrowed funds totaled $507,320,000 at September 30, 2016 compared to $565,850,000 at December 31, 2015. Borrowed funds decreased mainly as a result of a decrease in short-term FHLBB borrowings, this was offset, somewhat, by an increase in securities sold under agreements to repurchase. FHLBB borrowing decreased as a result of matured borrowings. Securities sold under agreements to repurchase increased, primarily as a result of increases in corporate accounts.

Stockholders’ Equity

At September 30, 2016, total equity was $233,781,000 compared to $214,544,000 million at December 31, 2015. The Company’s equity increased primarily as a result of earnings and a decrease in other comprehensive loss, net of taxes, offset somewhat by dividends paid. Other comprehensive loss, net of taxes, decreased primarily as a result of a decrease in unrealized losses on securities transferred from available-for-sale to held-to-maturity and amortization of the pension liability. This was offset, somewhat, by an increase in unrealized losses on securities available-for-sale. The Company’s leverage ratio stood at 6.46% at September 30, 2016, compared to 6.79% at December 31, 2015. The decrease in the leverage ratio was due to an increase in quarterly average assets, offset somewhat by an increase in stockholders’ equity. Book value as of September 30, 2016 was $41.99 per share compared to $38.53 at December 31, 2015.

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Results of Operations

The following table sets forth the distribution of the Company’s average assets, liabilities and stockholders’ equity, and average rates earned or paid on a fully taxable equivalent basis for each of the three-month periods indicated.

	Three Months Ended
	September 30, 2016									September 30, 2015
	Average Balance			Interest Income/ Expenses (1)			Rate Earned/ Paid (1)			Average Balance			Interest Income/ Expenses (1)			Rate Earned/ Paid (1)
	(dollars in thousands)
ASSETS
Interest-earning assets:
Loans (2):
Taxable	$	872,906		$	9,016			4.11	%	$	804,462		$	8,774			4.33	%
Tax-exempt		1,005,725			9,240			3.65			790,694			8,147			4.09
Securities available-for-sale (5):
Taxable		395,670			1,112			1.12			319,006			666			0.84
Tax-exempt		174,942			454			1.04			138,031			249			0.72
Securities held-to-maturity:
Taxable		1,559,082			8,238			2.11			1,645,878			8,834			2.15
Interest-bearing deposits in other banks		216,768			283			0.52			47,886			35			0.29
Total interest-earning assets		4,225,093			28,343			2.67	%		3,745,957			26,705			2.85	%
Non interest-earning assets		210,568									193,519
Allowance for loan losses		(24,092	)								(22,333	)
Total assets	$	4,411,569								$	3,917,143
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts	$	947,041		$	622			0.26	%	$	769,967		$	455			0.23	%
Savings accounts		426,241			461			0.43			347,222			274			0.31
Money market accounts		1,066,121			909			0.34			930,657			760			0.32
Time deposits		454,578			1,464			1.28			419,687			1,231			1.16
Total interest-bearing deposits		2,893,981			3,456			0.48			2,467,533			2,720			0.44
Securities sold under agreements to repurchase		233,188			122			0.21			249,874			129			0.20
Other borrowed funds and subordinated debentures		371,246			2,213			2.37			418,289			2,285			2.17
Total interest-bearing liabilities		3,498,415			5,791			0.66	%		3,135,696			5,134			0.65	%
Non-interest-bearing liabilities
Demand deposits		625,024									522,834
Other liabilities		57,812									51,115
Total liabilities		4,181,251									3,709,645
Stockholders’ equity		230,318									207,498
Total liabilities & stockholders’ equity	$	4,411,569								$	3,917,143
Net interest income on a fully taxable equivalent basis					22,552									21,571
Less taxable equivalent adjustment					(3,338	)								(2,955	)
Net interest income				$	19,214								$	18,616
Net interest spread (3)								2.01	%								2.20	%
Net interest margin (4)								2.12	%								2.28	%

(1) On a fully taxable equivalent basis calculated using a federal tax rate of 34%.

(2) Nonaccrual loans are included in average amounts outstanding.

(3) Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(4) Net interest margin represents net interest income as a percentage of average interest-earning assets.

(5) Average balances of securities available-for-sale calculated utilizing amortized cost.

38

The following table sets forth the distribution of the Company’s average assets, liabilities and stockholders’ equity, and average rates earned or paid on a fully taxable equivalent basis for each of the nine-month periods indicated.

	Nine Months Ended
	September 30, 2016									September 30, 2015
	Average Balance			Interest Income/ Expenses (1)			Rate Earned/ Paid (1)			Average Balance			Interest Income/ Expenses (1)			Rate Earned/ Paid (1)
	(dollars in thousands)
ASSETS
Interest-earning assets:
Loans (2):
Taxable	$	856,797		$	25,728			4.01	%	$	761,209		$	23,963			4.21	%
Tax-exempt		962,930			27,083			3.76			680,380			22,671			4.46
Securities available-for-sale (5):
Taxable		336,354			2,805			1.11			347,741			1,900			0.73
Tax-exempt		149,766			1,035			0.92			114,363			605			0.71
Securities held-to-maturity:
Taxable		1,504,728			24,178			2.14			1,640,388			26,373			2.14
Interest-bearing deposits in other banks		233,531			906			0.52			163,144			328			0.27
Total interest-earning assets		4,044,106			81,735			2.70	%		3,707,225			75,840			2.74	%
Non interest-earning assets		207,571									189,137
Allowance for loan losses		(23,714	)								(22,432	)
Total assets	$	4,227,963								$	3,873,930
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing deposits:
NOW accounts	$	891,267		$	1,635			0.25	%	$	793,699		$	1,337			0.23	%
Savings accounts		405,594			1,224			0.40			340,496			712			0.28
Money market accounts		1,011,283			2,485			0.33			959,192			2,276			0.32
Time deposits		450,799			4,216			1.25			395,915			3,594			1.21
Total interest-bearing deposits		2,758,943			9,560			0.46			2,489,302			7,919			0.43
Securities sold under agreements to repurchase		229,668			363			0.21			254,521			371			0.19
Other borrowed funds and subordinated debentures		367,638			6,767			2.00			370,152			6,570			2.37
Total interest-bearing liabilities		3,356,249			16,690			0.66	%		3,113,975			14,860			0.64	%
Non-interest-bearing liabilities
Demand deposits		590,669									507,855
Other liabilities		57,151									50,907
Total liabilities		4,004,069									3,672,737
Stockholders’ equity		223,894									201,193
Total liabilities & stockholders’ equity	$	4,227,963								$	3,873,930
Net interest income on a fully taxable equivalent basis					65,045									60,980
Less taxable equivalent adjustment					(9,725	)								(8,243	)
Net interest income				$	55,320								$	52,737
Net interest spread (3)								2.04	%								2.10	%
Net interest margin (4)								2.15	%								2.20	%

(1) On a fully taxable equivalent basis calculated using a federal tax rate of 34%.

(2) Nonaccrual loans are included in average amounts outstanding.

(3) Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(4) Net interest margin represents net interest income as a percentage of average interest-earning assets.

(5) Average balances of securities available-for-sale calculated utilizing amortized cost.

39

The following table presents certain information on a fully-tax equivalent basis regarding changes in the Company’s interest income and interest expense for the periods indicated. For each category of interest-earning assets and interest-bearing liabilities, information is provided with respect to changes attributable to changes in rate and changes in volume.

	Three Months Ended September 30, 2016 Compared with Three Months Ended September 30, 2015									Nine Months Ended September 30, 2016 Compared with Nine Months Ended September 30, 2015
	Increase/(Decrease) Due to Change in									Increase/(Decrease) Due to Change in
	Volume			Rate			Total			Volume			Rate			Total
	(in thousands)
Interest income:
Loans
Taxable	$	707		$	(465	)	$	242		$	2,924		$	(1,159	)	$	1,765
Tax-exempt		2,029			(936	)		1,093			8,362			(3,950	)		4,412
Securities available-for-sale
Taxable		183			263			446			(64	)		969			905
Tax-exempt		78			127			205			216			214			430
Securities held-to-maturity
Taxable		(460	)		(136	)		(596	)		(2,180	)		(15	)		(2,195	)
Interest-bearing deposits in other banks		203			45			248			183			395			578
Total interest income	$	2,740		$	(1,102	)	$	1,638		$	9,441		$	(3,546	)	$	5,895
Interest expense:
Deposits
NOW accounts	$	111		$	56		$	167		$	174		$	124		$	298
Savings accounts		71			116			187			155			357			512
Money market accounts		113			36			149			127			82			209
Time deposits		105			128			233			514			108			622
Total interest-bearing deposits		400			336			736			970			671			1,641
Securities sold under agreements to repurchase		(9	)		2			(7	)		(38	)		30			(8	)
Other borrowed funds and subordinated debentures		(273	)		201			(72	)		(44	)		241			197
Total interest expense		118			539			657			888			942			1,830
Change in net interest income	$	2,622		$	(1,641	)	$	981		$	8,553		$	(4,488	)	$	4,065

Net Interest Income

For the three months ended September 30, 2016, net interest income on a fully taxable equivalent basis totaled $22,552,000 compared to $21,571,000 for the same period in 2015, an increase of $981,000 or 4.5%. This increase in net interest income for the period is primarily due to an increase in average interest earning assets; this was partially offset by a sixteen basis point decrease in the net interest margin. The average balance of earning assets increased by 12.8% combined with a similar increase in average deposits. The net interest margin decreased from 2.28% on a fully taxable equivalent basis in 2015 to 2.12% on the same basis for 2016. This was primarily the result of a decrease in rates on earning assets. Also, interest income on a fully taxable equivalent basis increased 6.1%, mainly as a result of an increase in interest earning assets and interest expense increased 12.8% mainly as a result of an increase in deposit balances.

For the nine months ended September 30, 2016, net interest income on a fully taxable equivalent basis totaled $65,045,000 compared to $60,980,000 for the same period in 2015, an increase of $4,065,000 or 6.7%. This increase in net interest income for the period is primarily due to an increase in average interest earning assets. The average balance of earning assets increased by 9.1% combined with a similar increase in average deposits. The net interest margin decreased from 2.20% on a fully taxable equivalent basis in 2015 to 2.15% on the same basis for 2016. This was primarily the result of a decrease in rates on earning assets. Also, interest income on a fully taxable equivalent basis increased 7.8%, mainly as a result of an increase in interest earning assets and interest expense increased 12.3% primarily as a result of an increase in deposit balances.

40

Provision for Loan Losses

For the three months ended September 30, 2016, the loan loss provision was $375,000 compared to a provision of $0 for the same period last year. For the nine months ended September 30, 2016, the loan loss provision was $1,175,000 compared to a provision of $200,000 for the same period last year. The increase in the provision was primarily as a result of an increase in loan balances. During the second quarter of 2015, the Company enhanced its approach to the development of the historical loss factors on certain loans within the portfolio. This was done in response to the changing risk profile of the Company’s new loan originations and related methodology enhancements to address these changes. During the first nine months of 2016, the Company’s loan portfolio risk profile has remained consistent with year-end. Further discussion relating to changes in portfolio composition is discussed in the allowance for loan loss section of the management discussion and analysis.

Non-Interest Income and Expense

Other operating income for the quarter ended September 30, 2016 increased by $395,000 from the same period last year to $4,225,000. This was mainly attributable to an increase in gains on sales of mortgage loans of $308,000, other income of $101,000, and service charges on deposit accounts of $42,000. This was partially offset by a decrease in net gains on sales of securities of $33,000 and lockbox fees of $23,000. Other income increased primarily as a result of an increase in wealth management fees, merchant and charge card fees, and other customer fees. Also, service charges on deposit accounts increased primarily as a result of an increase in fees collected on deposit accounts.

Other operating income for the nine months ended September 30, 2016 increased by $977,000 from the same period last year to $12,522,000. This was mainly attributable to an increase in other income of $427,000, gains on sales of mortgage loans of $589,000, and an increase in service charges on deposit accounts of $94,000. This was partially offset by a decrease in net gains on sales of securities of $106,000 and lockbox fees of $27,000. Other income increased primarily as a result of an increase in insurance gains of $184,000, wealth management fees of $126,000, and merchant and credit card sales royalties of $113,000. Also, service charges on deposit accounts increased primarily as a result of an increase in fees collected on deposit accounts.

For the quarter ended September 30, 2016, operating expenses increased by $530,000 or 3.3% to $16,630,000, from the same period last year. The increase in operating expenses for the quarter was mainly attributable to an increase of $457,000 in salaries and employee benefits, $199,000 in other expenses, $10,000 in occupancy expenses, and $75,000 in equipment expenses. This was partially offset by a decrease in FDIC assessments of $211,000. Salaries and employee benefits increased mainly as a result of merit increases and bonus accruals. Occupancy cost increased primarily as a result of increased utility charges and rent increases. Equipment expenses increased primarily as a result of an increase in depreciation expense. Other expenses increased primarily as a result of an increase in marketing expenses. FDIC assessments decreased primarily as a result of a decrease in the assessment rate.

For the nine months ended September 30, 2016, operating expenses increased by $2,197,000 or 4.7% to $48,601,000 from the same period last year. The increase in operating expenses for the nine months was mainly attributable to an increase of $1,659,000 in salaries and employee benefits, $481,000 in other expenses, $138,000 in equipment expenses, and $18,000 in occupancy expenses. This was offset, somewhat, by a decrease of $99,000 in FDIC assessments. Salaries and employee benefits increased mainly as a result of merit increases and bonus accruals. Other expenses increased primarily as a result of an increase in telephone costs, postage and delivery expenses, audit and exam fees, and increased software maintenance fees. Occupancy cost increased primarily as a result of modest increases rent expense. Equipment expenses increased primarily as a result of an increase in depreciation expense. FDIC assessments decreased primarily as a result of a decrease in the assessment rate.

Income Taxes

For the third quarter of 2016, the Company’s income tax expense (benefit) totaled $(52,000) on pretax income of $6,434,000 resulting in an effective tax rate of (0.8)%. For last year’s corresponding quarter, the Company’s income tax expense totaled $180,000 on pretax income of $6,346,000 resulting in an effective tax rate of 2.8%. The decrease in the effective income tax rate was primarily the result of an increase in tax-exempt income.

For the first nine months of 2016, the Company’s income tax expense totaled $32,000 on pretax income of $18,066,000 resulting in an effective tax rate of 0.2%. For last year’s corresponding period, the Company’s income tax expense totaled $628,000 on pretax income of $17,678,000 resulting in an effective tax rate of 3.6%. The decrease in the effective income tax rate was primarily the result of an increase in tax-exempt income.

41

Item 3. Quantitative and Qualitative Disclosure about Market Risk

Market risk is the risk of loss from adverse changes in market prices and rates. The Company’s market risk arises primarily from interest rate risk inherent in its lending and deposit taking activities. To that end, management actively monitors and manages its interest rate risk exposure. The Company’s profitability is affected by fluctuations in interest rates. A sudden and substantial increase or decrease in interest rates may adversely impact the Company’s earnings to the extent that the interest rates tied to specific assets and liabilities do not change at the same speed, to the same extent, or on the same basis. The Company monitors the impact of changes in interest rates on its net interest income using several tools. The Company’s primary objective in managing interest rate risk is to minimize the adverse impact of changes in interest rates on the Company’s net interest income and capital, while structuring the Company’s asset-liability structure to obtain the maximum yield-cost spread on that structure. Management believes that there has been no material changes in the interest rate risk reported in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed with the Securities and Exchange Commission. The information is contained in the Form 10-K within the Market Risk and Asset Liability Management section of Management’s Discussion and Analysis of Results of Operations and Financial Condition.

Item 4. Controls and Procedures

The Company’s management, with participation of the Company’s principal executive and financial officers, has evaluated its disclosure controls and procedures as of the end of the period covered by this quarterly report. Based on this evaluation, the Company’s management, with participation of its principal executive and financial officers, has concluded that the Company’s disclosure controls and procedures are effective. The disclosure controls and procedures also effectively ensure that information required to be disclosed in the Company’s filings and submissions with the Securities and Exchange Commission under the Exchange Act is accumulated and reported to Company management (including the principal executive officer and the principal financial officer) as appropriate to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within the time periods specified by the Securities and Exchange Commission. In addition, the Company has evaluated its internal control over financial reporting and during the third quarter of 2016 there were no changes that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

42

Part II – Other Information

Item 1	Legal proceedings – At the present time, the Company is not engaged in any legal proceedings which, if adversely determined to the Company, would have a material adverse impact on the Company’s financial condition or results of operations. From time to time, the Company is party to routine legal proceedings within the normal course of business. Such routine legal proceedings, in the aggregate, are believed by management to be immaterial to the Company’s financial condition and results of operation.
Item 1A	Risk Factors – Please read “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015. There have been no material changes since this 10-K was filed. These risks are not the only ones facing the Company. Additional risks and uncertainties not currently known to the Company or that the Company currently deems to be immaterial also may materially adversely affect the Company’s business, financial condition and operating results.
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds –
	(a) — (b) Not applicable.
	(c) None
Item 3	Defaults Upon Senior Securities – None
Item 4	Mine Safety Disclosures – Not applicable
Item 5	Other Information – None
Item 6	Exhibits
	31.1	Certification of President and Chief Executive Officer of the Company Pursuant to Securities Exchange Act Rules 13a-14 and 15d-14.
	31.2	Certification of Chief Financial Officer of the Company Pursuant to Securities Exchange Act Rules 13a-14 and 15d-14.
	+32.1	Certification of President and Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
	+32.2	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
	++101.	INS XBRL Instance Document
	++101.	SCH XBRL Taxonomy Extension Schema
	++101.	CAL XBRL Taxonomy Extension Calculation Linkbase
	++101.	LAB XBRL Taxonomy Extension Label Linkbase
	++101.	PRE XBRL Taxonomy Extension Presentation Linkbase
	++101.	DEF XBRL Taxonomy Definition Linkbase

+ This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.

++ As provided in Rule 406T of regulation S-T, this information is filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934 and consists of the following materials from Century Bancorp Inc.’s Quarterly Report on 10-Q for the quarter ended September 30, 2016, formatted in XBRL: (i) Consolidated Balance Sheets at September 30, 2016 and December 31, 2015; (ii) Consolidated Statements of Income for the three and nine months ended September 30, 2016 and 2015; (iii) Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2016 and 2015; (iv) Consolidated Statements of Changes in Stockholders’ Equity for the nine months ended September 30, 2016 and 2015; (v) Consolidated Statements of Cash Flows for the nine months ended September 30, 2016 and 2015; and (vi) Notes to Unaudited Consolidated Interim Financial Statements.

43

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date:	November 7, 2016	Century Bancorp, Inc.
/s/ Barry R. Sloane
Barry R. Sloane President and Chief Executive Officer
/s/ William P. Hornby
William P. Hornby, CPA Chief Financial Officer and Treasurer (Principal Accounting Officer)

44

EX-31.1

Exhibit 31.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER OF THE COMPANY

PURSUANT TO SECURITIES EXCHANGE ACT RULES 13A-14 AND 15D-14

I, Barry R. Sloane, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Century Bancorp, Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the period presented in this quarterly report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant, and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly 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 quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and;

d. Disclosed in this quarterly report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors;

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involve management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 7, 2016	/s/ Barry R. Sloane
	Barry R. Sloane
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER OF THE COMPANY

PURSUANT TO SECURITIES EXCHANGE ACT RULES 13A-14 AND 15D-14

I, William P. Hornby, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Century Bancorp, Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the period presented in this quarterly report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant, and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly 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 quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and;

d. Disclosed in this quarterly report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors;

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involve management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 7, 2016	/s/ William P. Hornby
	William P. Hornby, CPA
	Chief Financial Officer and Treasurer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. Section 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Century Bancorp, Inc. (the “Company”) for the quarter ended September 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, certifies, to the best knowledge and belief of the signatory, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Barry R. Sloane

Barry R. Sloane

President and Chief Executive Officer

Date: November 7, 2016

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished solely pursuant to Subsections (a) and (b) of Section 1350 of Chapter 63 of Title 18 of the United States Code in accordance with Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. Section 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Century Bancorp, Inc. (the “Company”) for the quarter ended September 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, certifies, to the best knowledge and belief of the signatory, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ William P. Hornby

William P. Hornby, CPA

Chief Financial Officer and Treasurer

Date: November 7, 2016

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished solely pursuant to Subsections (a) and (b) of Section 1350 of Chapter 63 of Title 18 of the United States Code in accordance with Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 31, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Trading Symbol	CNBKA
Entity Registrant Name	CENTURY BANCORP INC
Entity Central Index Key	0000812348
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Class A Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		3,600,729
Class B Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		1,967,180

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Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Assets
Cash and due from banks	$ 58,975	$ 52,877
Federal funds sold and interest-bearing deposits in other banks	159,900	167,847
Total cash and cash equivalents	218,875	220,724
Short-term investments	3,241	3,233
Securities available-for-sale, amortized cost $526,762 and $404,977, respectively	526,132	404,623
Securities held-to-maturity, fair value $1,589,183 and $1,438,960, respectively	1,565,191	1,438,903
Federal Home Loan Bank of Boston stock, at cost	21,148	28,807
Loans, net:
Commercial and industrial	549,290	452,235
Municipal	145,063	85,685
Construction and land development	19,522	27,421
Commercial real estate	692,778	721,506
Residential real estate	222,881	255,346
Home equity	200,085	178,020
Consumer and other	11,474	11,323
Total loans, net	1,841,093	1,731,536
Less: allowance for loan losses	24,208	23,075
Net loans	1,816,885	1,708,461
Bank premises and equipment	23,334	24,106
Accrued interest receivable	7,597	8,002
Goodwill	2,714	2,714
Other assets	113,206	107,868
Total assets	4,298,323	3,947,441
Deposits:
Demand deposits	645,317	541,955
Savings and NOW deposits	1,293,995	1,070,585
Money market accounts	1,067,170	989,094
Time deposits	454,631	473,426
Total deposits	3,461,113	3,075,060
Securities sold under agreements to repurchase	214,320	197,850
Other borrowed funds	293,000	368,000
Subordinated debentures	36,083	36,083
Due to broker	2,252	405
Other liabilities	57,774	55,499
Total liabilities	4,064,542	3,732,897
Stockholders' Equity
Preferred stock-$1.00 par value; 100,000 shares authorized; no shares issued and outstanding
Additional paid-in capital	12,292	12,292
Retained earnings	237,616	221,232
Stockholders' equity before adjustment of accumulated other comprehensive income (loss)	255,476	239,092
Unrealized losses on securities available-for-sale, net of taxes	(394)	(246)
Unrealized losses on securities transferred to held-to-maturity, net of taxes	(4,622)	(6,896)
Pension liability, net of taxes	(16,679)	(17,406)
Total accumulated other comprehensive loss, net of taxes	(21,695)	(24,548)
Total stockholders' equity	233,781	214,544
Total liabilities and stockholders' equity	4,298,323	3,947,441
Class A Common Stock [Member]
Stockholders' Equity
Common stock value	3,601	3,601
Total stockholders' equity	3,601	3,601
Class B Common Stock [Member]
Stockholders' Equity
Common stock value	1,967	1,967
Total stockholders' equity	$ 1,967	$ 1,967

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Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Amortized cost	$ 526,762	$ 404,977
Held-to-maturity securities, fair value	$ 1,589,183	$ 1,438,960
Preferred stock, par value	$ 1.00	$ 1.00
Preferred stock, shares authorized	100,000	100,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Class A Common Stock [Member]
Common stock, par value	$ 1.00	$ 1.00
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	3,600,729	3,600,729
Class B Common Stock [Member]
Common stock, par value	$ 1.00	$ 1.00
Common stock, shares authorized	5,000,000	5,000,000
Common stock, shares issued	1,967,180	1,967,180

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Consolidated Statements of Income (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Interest income
Loans	$ 15,045	$ 14,051	$ 43,380	$ 38,597
Securities held-to-maturity	8,238	8,834	24,178	26,373
Securities available-for-sale	1,439	830	3,546	2,299
Federal funds sold and interest-bearing deposits in other banks	283	35	906	328
Total interest income	25,005	23,750	72,010	67,597
Interest expense
Savings and NOW deposits	1,083	729	2,859	2,049
Money market accounts	909	760	2,485	2,276
Time deposits	1,464	1,231	4,216	3,594
Securities sold under agreements to repurchase	122	129	363	371
Other borrowed funds and subordinated debentures	2,213	2,285	6,767	6,570
Total interest expense	5,791	5,134	16,690	14,860
Net interest income	19,214	18,616	55,320	52,737
Provision for loan losses	375		1,175	200
Net interest income after provision for loan losses	18,839	18,616	54,145	52,537
Other operating income
Service charges on deposit accounts	1,983	1,941	5,882	5,788
Lockbox fees	759	782	2,431	2,458
Net gains on sales of securities	19	52	64	170
Gains on sales of mortgage loans	533	225	1,331	742
Other income	931	830	2,814	2,387
Total other operating income	4,225	3,830	12,522	11,545
Operating expenses
Salaries and employee benefits	10,544	10,087	30,360	28,701
Occupancy	1,509	1,499	4,639	4,621
Equipment	772	697	2,087	1,949
FDIC assessments	343	554	1,503	1,602
Other	3,462	3,263	10,012	9,531
Total operating expenses	16,630	16,100	48,601	46,404
Income before income taxes	6,434	6,346	18,066	17,678
Provision for income taxes	(52)	180	32	628
Net income	6,486	6,166	18,034	17,050
Class A Common Stock [Member]
Operating expenses
Net income	$ 5,094	$ 4,843	$ 14,165	$ 13,392
Share data:
Weighted average number of shares outstanding, basic	3,600,729	3,600,729	3,600,729	3,600,729
Weighted average number of shares outstanding, diluted	5,567,909	5,567,909	5,567,909	5,567,909
Basic earnings per share	$ 1.41	$ 1.35	$ 3.93	$ 3.72
Diluted earnings per share	$ 1.16	$ 1.11	$ 3.24	$ 3.06
Class B Common Stock [Member]
Operating expenses
Net income	$ 1,392	$ 1,323	$ 3,869	$ 3,658
Share data:
Weighted average number of shares outstanding, basic	1,967,180	1,967,180	1,967,180	1,967,180
Weighted average number of shares outstanding, diluted	1,967,180	1,967,180	1,967,180	1,967,180
Basic earnings per share	$ 0.71	$ 0.67	$ 1.97	$ 1.86
Diluted earnings per share	$ 0.71	$ 0.67	$ 1.97	$ 1.86

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Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 6,486	$ 6,166	$ 18,034	$ 17,050
Unrealized gains (losses) on securities:
Unrealized (losses) gains arising during period	(98)	27	(109)	(2)
Less: reclassification adjustment for gains included in net income	(12)	(31)	(39)	(102)
Total unrealized (losses) gains on securities	(110)	(4)	(148)	(104)
Accretion of net unrealized losses transferred	527	935	2,274	2,697
Defined benefit pension plans:
Amortization of prior service cost and loss included in net periodic benefit cost	242	213	727	639
Other comprehensive income	659	1,144	2,853	3,232
Comprehensive income	$ 7,145	$ 7,310	$ 20,887	$ 20,282

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Consolidated Statements of Changes in Stockholders' Equity (unaudited) - USD ($) $ in Thousands	Total	Class A Common Stock [Member]	Class B Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Retained Earnings [Member] Class A Common Stock [Member]	Retained Earnings [Member] Class B Common Stock [Member]	Accumulated Other Comprehensive Loss [Member]
Beginning balance at Dec. 31, 2014	$ 192,500	$ 3,601	$ 1,967	$ 12,292	$ 200,411			$ (25,771)
Net income	17,050	13,392	3,658		17,050
Other comprehensive income, net of tax:
Unrealized holding (losses) gains arising during period, net of taxes	(104)							(104)
Accretion of unrealized losses on securities transferred to held-to-maturity net of taxes	2,697							2,697
Pension liability adjustment, net of taxes	639							639
Cash dividends	(1,296)					$ (1,296)	$ (354)
Ending balance at Sep. 30, 2015	211,132	3,601	1,967	12,292	215,811			(22,539)
Beginning balance at Dec. 31, 2015	214,544	3,601	1,967	12,292	221,232			(24,548)
Net income	18,034	14,165	3,869		18,034
Other comprehensive income, net of tax:
Unrealized holding (losses) gains arising during period, net of taxes	(148)							(148)
Accretion of unrealized losses on securities transferred to held-to-maturity net of taxes	2,274							2,274
Pension liability adjustment, net of taxes	727							727
Cash dividends	(1,296)					$ (1,296)	$ (354)
Ending balance at Sep. 30, 2016	$ 233,781	$ 3,601	$ 1,967	$ 12,292	$ 237,616			$ (21,695)

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Consolidated Statements of Changes in Stockholders' Equity (unaudited) (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Unrealized holding (losses) gains arising during period, taxes	$ 128	$ 68
Realized net gains	64	170
Accretion of net unrealized losses transferred during the period, taxes	1,216	1,444
Pension liability adjustment, taxes	$ 484	$ 245
Class A Common Stock [Member]
Cash dividends, per share	$ 0.36	$ 0.36
Class B Common Stock [Member]
Cash dividends, per share	$ 0.18	$ 0.18

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Consolidated Statements of Cash Flows (unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 18,034,000	$ 17,050,000
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sales of mortgage loans	(1,331,000)	(742,000)
Net gains on sales of securities	(64,000)	(170,000)
Provision for loan losses	1,175,000	200,000
Deferred income taxes	(3,143,000)	(1,825,000)
Net depreciation and amortization	2,498,000	2,486,000
Decrease (increase) in accrued interest receivable	405,000	(1,065,000)
Increase in other assets	(3,877,000)	(10,430,000)
Increase in other liabilities	3,484,000	1,982,000
Net cash provided by operating activities	17,181,000	7,486,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of short-term investments	(8,000)	(8,000)
Proceeds from redemptions of Federal Home Loan Bank of Boston stock	10,276,000
Purchase of Federal Home Loan Bank of Boston stock	(2,617,000)
Proceeds from calls/maturities of securities available-for-sale	206,025,000	163,809,000
Proceeds from sales of securities available-for-sale	2,376,000	42,716,000
Purchase of securities available-for-sale	(328,565,000)	(168,889,000)
Proceeds from calls/maturities of securities held-to-maturity	318,815,000	310,694,000
Proceeds from sales of securities held-to-maturity	192,000	0
Purchase of securities held-to-maturity	(441,756,000)	(443,705,000)
Net increase in loans	(182,901,000)	(356,915,000)
Proceeds from sales of portfolio loans	74,668,000	48,041,000
Capital expenditures	(1,408,000)	(2,063,000)
Net cash used in investing activities	(344,903,000)	(406,320,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (decrease) increase in time deposits	(18,795,000)	23,275,000
Net increase in demand, savings, money market and NOW deposits	404,848,000	148,706,000
Cash dividends	(1,650,000)	(1,650,000)
Net increase (decrease) in securities sold under agreements to repurchase	16,470,000	(590,000)
Net (decrease) increase in other borrowed funds	(75,000,000)	37,000,000
Net cash provided by financing activities	325,873,000	206,741,000
Net decrease in cash and cash equivalents	(1,849,000)	(192,093,000)
Cash and cash equivalents at beginning of period	220,724,000	305,357,000
Cash and cash equivalents at end of period	218,875,000	113,264,000
Cash paid during the period for:
Interest	16,806,000	14,735,000
Income taxes	2,730,000	3,780,000
Change in unrealized losses on securities available-for-sale, net of taxes	(148,000)	(104,000)
Change in unrealized losses on securities transferred to held-to-maturity, net of taxes	2,274,000	2,697,000
Pension liability adjustment, net of taxes	727,000	639,000
Change in due to (from) to broker	$ 1,847,000	$ 4,430,000

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Basis of Financial Statement Presentation

9 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Financial Statement Presentation

Note 1. Basis of Financial Statement Presentation

The consolidated financial statements include the accounts of Century Bancorp, Inc. (the “Company”) and its wholly owned subsidiary, Century Bank and Trust Company (the “Bank”). The consolidated financial statements also include the accounts of the Bank’s wholly owned subsidiaries, Century Subsidiary Investments, Inc. (“CSII”), Century Subsidiary Investments, Inc. II (“CSII II”), Century Subsidiary Investments, Inc. III (“CSII III”) and Century Financial Services Inc. (“CFSI”). CSII, CSII II, and CSII III are engaged in buying, selling and holding investment securities. CFSI has the power to engage in financial agency, securities brokerage, and investment and financial advisory services and related securities credit. The Company also owns 100% of Century Bancorp Capital Trust II (“CBCT II”). The entity is an unconsolidated subsidiary of the Company.

All significant intercompany accounts and transactions have been eliminated in consolidation. The Company provides a full range of banking services to individual, business and municipal customers in Massachusetts. As a bank holding company, the Company is subject to the regulation and supervision of the Federal Reserve Board. The Bank, a state chartered financial institution, is subject to supervision and regulation by applicable state and federal banking agencies, including the Federal Reserve Board, the Federal Deposit Insurance Corporation (the “FDIC”) and the Commonwealth of Massachusetts Commissioner of Banks. The Bank is also subject to various requirements and restrictions under federal and state law, including requirements to maintain reserves against deposits, restrictions on the types and amounts of loans that may be granted and the interest that may be charged thereon, and limitations on the types of investments that may be made and the types of services that may be offered. Various consumer laws and regulations also affect the operations of the Bank. In addition to the impact of regulation, commercial banks are affected significantly by the actions of the Federal Reserve Board as it attempts to control the money supply and credit availability in order to influence the economy. All aspects of the Company’s business are highly competitive. The Company faces aggressive competition from other lending institutions and from numerous other providers of financial services. The Company has one reportable operating segment.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and general practices within the banking industry. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ from those estimates. The Company’s quarterly report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015, as filed with the Securities and Exchange Commission.

Material estimates that are susceptible to change in the near term relate to the allowance for loan losses. Management believes that the allowance for loan losses is adequate based on independent appraisals and review of other factors, including historical charge-off rates with additional allocations based on risk factors for each category and general economic factors. While management uses available information to recognize loan losses, future additions to the allowance for loan losses may be necessary based on changes in economic conditions. In addition, regulatory agencies periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance for loan losses based on their judgments about information available to them at the time of their examination. Certain reclassifications are made to prior-year amounts whenever necessary to conform with the current-year presentation.

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Securities Available-for-Sale

9 Months Ended

Sep. 30, 2016

Text Block [Abstract]

Securities Available-for-Sale

Note 2. Securities Available-for-Sale

	September 30, 2016								December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
U.S. Treasury	$	2,000	$	—	$	—	$	2,000	$	1,999	$	—	$	10	$	1,989
U.S. Government Sponsored Enterprises		15,000		9		—		15,009		—		—		—		—
SBA Backed Securities		58,496		11		162		58,345		5,983		8		2		5,989
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		264,545		346		437		264,454		232,967		859		300		233,526
Privately Issued Residential Mortgage-Backed Securities		1,190		2		15		1,177		1,437		10		13		1,434
Obligations Issued by States and Political Subdivisions		180,315		—		404		179,911		157,838		—		878		1 56,960
Other Debt Securities		5,100		15		154		4,961		4,600		3		130		4,473
Equity Securities		116		159		—		275		153		99		—		252
Total	$	526,762	$	542	$	1,172	$	526,132	$	404,977	$	979	$	1,333	$	404,623

Included in U.S. Government Sponsored Enterprise Securities and U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities are securities at fair value pledged to secure public deposits and repurchase agreements amounting to $223,246,000 and $220,482,000 at September 30, 2016 and December 31, 2015, respectively. Also included in securities available-for-sale are securities at fair value pledged for borrowing at the Federal Home Loan Bank of Boston amounting to $63,351,000 and $20,056,000 at September 30, 2016 and December 31, 2015, respectively. The Company realized gross gains of $52,000 from the proceeds of $2,376,000 from the sales of available-for-sale securities for the nine months ended September 30, 2016. The Company realized gross gains of $170,000 from the proceeds of $42,716,000 from the sales of available-for-sale securities for the nine months ended September 30, 2015.

Debt securities of Government Sponsored Enterprises primarily refer to debt securities of Fannie Mae and Freddie Mac.

The following table shows the maturity distribution of the Company’s securities available-for-sale at September 30, 2016.

	Amortized Cost		Fair Value
	(in thousands)
Within one year	$	186,348	$	186,336
After one but within five years		203,010		202,873
After five but within ten years		130,087		129,948
More than 10 years		5,701		5,313
Non-maturing		1,616		1,662
Total	$	526,762	$	526,132

The weighted average remaining life of investment securities available-for-sale at September 30, 2016 was 3.6 years. Included in the weighted average remaining life calculation at September 30, 2016 were $15,000,000 of U.S. Government Sponsored Enterprises obligations that are callable at the discretion of the issuer. The contractual maturities, which were used in the table above, of mortgage-backed securities, will differ from the actual maturities, due to the ability of the issuers to prepay underlying obligations.

As of September 30, 2016 and December 31, 2015, management concluded that the unrealized losses of its investment securities are temporary in nature since they are not related to the underlying credit quality of the issuers, and the Company does not intend to sell these debt securities and it is not more likely than not that it will be required to sell these debt securities before the anticipated recovery of its remaining amortized cost. In making its other-than-temporary impairment evaluation, the Company considered that the principal and interest on these securities are from issuers that are investment grade. The change in the unrealized losses on the state and municipal securities and the non-agency mortgage-backed securities was primarily caused by changes in credit spreads and liquidity issues in the marketplace.

The unrealized loss on SBA Backed Securities, U.S. Government Agency and Sponsored Enterprise Mortgage Backed Securities, and Obligations Issued by States and Political Subdivisions, related primarily to interest rates and not credit quality, and because the Company has the ability and intent to hold these investments until recovery of fair value, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired.

In evaluating the underlying credit quality of a security, management considers several factors such as the credit rating of the obligor and the issuer, if applicable. Internal reviews of issuer financial statements are performed as deemed necessary. In the case of privately issued mortgage-backed securities, the performance of the underlying loans is analyzed as deemed necessary to determine the estimated future cash flows of the securities. Factors considered include the level of subordination, current and estimated future default rates, current and estimated prepayment rates, estimated loss severity rates, geographic concentrations and origination dates of underlying loans. In the case of marketable equity securities, the severity of the unrealized loss, the length of time the unrealized loss has existed, and the issuer’s financial performance are considered.

The following table shows the temporarily impaired securities of the Company’s available-for-sale portfolio at September 30, 2016. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for less than 12 months and a continuous loss position for 12 months or longer. There are 41 and 15 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 282 holdings at September 30, 2016.

	September 30, 2016
	Less than 12 months				12 months or longer				Total
Temporarily Impaired Investments	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. Treasury	$	—	$	—	$	—	$	—	$	—	$	—
SBA Backed Securities		52,809		160		971		2		53,780		162
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		128,839		298		33,439		139		162,278		437
Privately Issued Residential Mortgage-Backed Securities		373		1		430		14		803		15
Obligations Issued by States and Political Subdivisions		—		—		4,298		404		4,298		404
Other Debt Securities		460		40		1,886		114		2,346		154
Total temporarily impaired securities	$	182,481	$	499	$	41,024	$	673	$	223,505	$	1,172

The following table shows the temporarily impaired securities of the Company’s available-for-sale portfolio at December 31, 2015. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for less than 12 months and a continuous loss position for 12 months or longer. There are 14 and 11 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 290 holdings at December 31, 2015.

	December 31, 2015
	Less than 12 months				12 months or longer				Total
Temporarily Impaired Investments	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. Treasury	$	1,989	$	10	$	—	$	—	$	1,989	$	10
SBA Backed Securities		1,031		2		—		—		1,031		2
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		26,519		52		49,341		248		75,860		300
Privately Issued Residential Mortgage-Backed Securities		—		—		490		13		490		13
Obligations Issued by States and Political Subdivisions		—		—		3,820		878		3,820		878
Other Debt Securities		497		3		1,373		127		1,870		130
Total temporarily impaired securities	$	30,036	$	67	$	55,024	$	1,266	$	85,060	$	1,333

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Investment Securities Held-to-Maturity

9 Months Ended

Sep. 30, 2016

Text Block [Abstract]

Investment Securities Held-to-Maturity

Note 3. Investment Securities Held-to-Maturity

	September 30, 2016								December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
U.S. Government Sponsored Enterprises	$	165,176	$	2,577	$	16	$	167,737	$	186,734	$	2,234	$	141	$	188,827
SBA Backed Securities		20,926		69		—		20,995		—		—		—		—
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		1,379,089		22,755		1,393		1,400,451		1,252,169		7,547		9,583		1,250,133
Total	$	1,565,191	$	25,401	$	1,409	$	1,589,183	$	1,438,903	$	9,781	$	9,724	$	1,438,960

Included in U.S. Government and Agency Securities are securities pledged to secure public deposits and repurchase agreements at fair value amounting to $1,119,685,000 and $1,004,743,000 at September 30, 2016 and December 31, 2015, respectively. Also included are securities pledged for borrowing at the Federal Home Loan Bank of Boston at fair value amounting to $355,602,000 and $432,965,000 at September 30, 2016 and December 31, 2015, respectively. The Company realized gross gains of $12,000 from the proceeds of $192,000 from the sales of securities held-to-maturity for the nine months ended September 30, 2016. The sales of securities held-to-maturity relate to certain mortgage-backed securities for which the Company had previously collected a substantial portion of its principal investment. There were no sales of held-to-maturity securities for the nine months ended September 30, 2015.

At September 30, 2016 and December 31, 2015, all mortgage-backed securities are obligations of U.S. Government Agencies and Government Sponsored Enterprises. U.S. Government Sponsored Enterprises primarily refer to debt securities of Fannie Mae and Freddie Mac.

The following table shows the maturity distribution of the Company’s securities held-to-maturity at September 30, 2016.

	Amortized Cost		Fair Value
	(in thousands)
Within one year	$	15,191	$	15,314
After one but within five years		1,360,309		1,379,055
After five but within ten years		186,544		191,613
More than ten years		3,147		3,201
Total	$	1,565,191	$	1,589,183

The weighted average remaining life of investment securities held-to-maturity at September 30, 2016 was 3.8 years. Included in the weighted average remaining life calculation at September 30, 2016 were $76,745,000 of U.S. Government Sponsored Enterprises obligations that are callable at the discretion of the issuer. The actual maturities, which were used in the table above, of mortgage-backed securities, will differ from the contractual maturities, due to the ability of the issuers to prepay underlying obligations.

As of September 30, 2016 and December 31, 2015, management concluded that the unrealized losses of its investment securities are temporary in nature since they are not related to the underlying credit quality of the issuers, and the Company does not intend to sell these debt securities and it is not likely that it will be required to sell these debt securities before the anticipated recovery of their remaining amortized costs. In making its other-than-temporary impairment evaluation, the Company considered the fact that the principal and interest on these securities are from issuers that are investment grade.

The unrealized loss on U.S. Government Sponsored Enterprises and U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities related primarily to interest rates and not credit quality, and because the Company does not intend to sell any of these securities and it is not likely that it will be required to sell these securities before the anticipated recovery of the remaining amortized cost, the Company does not consider these investments to be other-than-temporarily impaired September 30, 2016 and December 31, 2015.

In evaluating the underlying credit quality of a security, management considers several factors such as the credit rating of the obligor and the issuer, if applicable. Internal reviews of issuer financial statements are performed as deemed necessary.

The following table shows the temporarily impaired securities of the Company’s held-to-maturity portfolio at September 30, 2016. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months or longer. There are 33 and 15 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 357 holdings at September 30, 2016.

	September 30, 2016
	Less Than 12 Months				12 Months or Longer				Total
Temporarily Impaired Investments	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. Government Sponsored Enterprises	$	41,984	$	16	$	—	$	—	$	41,984	$	16
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		162,780		645		57,854		748		220,634		1,393
Total temporarily impaired securities	$	204,764	$	661	$	57,854	$	748	$	262,618	$	1,409

The following table shows the temporarily impaired securities of the Company’s held-to-maturity portfolio at December 31, 2015. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for less than 12 months and a continuous loss position for 12 months or longer. There are 101 and 26 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 322 holdings at December 31, 2015.

	December 31, 2015
	Less Than 12 Months				12 Months or Longer				Total
Temporarily Impaired Investments	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. Government Sponsored Enterprises	$	9,859	$	141	$	—	$	—	$	9,859	$	141
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		626,218		6,657		123,864		2,926		750,082		9,583
Total temporarily impaired securities	$	636,077	$	6,798	$	123,864	$	2,926	$	759,941	$	9,724

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Allowance for Loan Losses

9 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Allowance for Loan Losses

Note 4. Allowance for Loan Losses

The Company maintains an allowance for loan losses in an amount determined by management on the basis of the character of the loans, loan performance, financial condition of borrowers, the value of collateral securing loans and other relevant factors.

The following table summarizes the changes in the Company’s allowance for loan losses for the periods indicated.

	Three months ended September 30,						Nine months ended September 30,
	2016			2015			2016			2015
	(in thousands)
Allowance for loan losses, beginning of period	$	23,863		$	22,245		$	23,075		$	22,318
Loans charged off		(118	)		(129	)		(298	)		(613	)
Recoveries on loans previously charged-off		93			214			345			425
Net recoveries (charge-offs)		(25	)		85			47			(188	)
Provision charged to expense		375			—			1,175			200
Reclassification to other liabilities*		(5	)		—			(89	)		—
Allowance for loan losses, end of period	$	24,208		$	22,330		$	24,208		$	22,330

* The reclassification relates to allowance for loan losses allocations on unused commitments that have been reclassified to other liabilities.

Further information pertaining to the allowance for loan losses for the three months ending September 30, 2016 follows:

	Construction and Land Development			Commercial and Industrial		Municipal			Commercial Real Estate			Residential Real Estate		Consumer			Home Equity			Unallocated		Total
	(in thousands)
Allowance for loan losses:
Balance at June 30, 2016	$	2,234		$	5,842	$	1,801		$	10,650		$	1,302	$	608		$	1,158		$	268	$	23,863
Charge-offs		—			—		—			—			—		(91	)		(27	)		—		(118	)
Recoveries		—			24		—			—			2		67			—			—		93
Provision		(3	)		307		(29	)		(752	)		624		5			155			68		375
Reclassification to other liabilities		—			—		—			—			—		—			(5	)		—		(5	)
Ending balance at September 30, 2016	$	2,231		$	6,173	$	1,772		$	9,898		$	1,928	$	589		$	1,281		$	336	$	24,208
Amount of allowance for loan losses for loans deemed to be impaired	$	4		$	9	$	—		$	143		$	7	$	—		$	—		$	—	$	163
Amount of allowance for loan losses for loans not deemed to be impaired	$	2,227		$	6,164	$	1,772		$	9,755		$	1,921	$	589		$	1,281		$	336	$	24,045
Loans:
Ending balance	$	19,522		$	549,290	$	145,063		$	692,778		$	222,881	$	11,474		$	200,085		$	—	$	1,841,093
Loans deemed to be impaired	$	95		$	399	$	—		$	3,707		$	208	$	—		$	—		$	—	$	4,409
Loans not deemed to be impaired	$	19,427		$	548,891	$	145,063		$	689,071		$	222,673	$	11,474		$	200,085		$	—	$	1,836,684

Further information pertaining to the allowance for loan losses for the nine months ending September 30, 2016 follows:

	Construction and Land Development			Commercial and Industrial			Municipal		Commercial Real Estate			Residential Real Estate			Consumer			Home Equity			Unallocated			Total
	(in thousands)
Allowance for loan losses:
Balance at December 31, 2015	$	2,041		$	5,899		$	994	$	10,589		$	1,320		$	644		$	1,077		$	511		$	23,075
Charge-offs		—			—			—		—			—			(271	)		(27	)		—			(298	)
Recoveries		—			115			—		—			5			225			—			—			345
Provision		193			188			778		(680	)		605			(6	)		272			(175	)		1,175
Reclassification to other liabilities		(3	)		(29	)		—		(11	)		(2	)		(3	)		(41	)		—			(89	)
Ending balance at September 30, 2016	$	2,231		$	6,173		$	1,772	$	9,898		$	1,928		$	589		$	1,281		$	336		$	24,208
Amount of allowance for loan losses for loans deemed to be impaired	$	4		$	9		$	—	$	143		$	7		$	—		$	—		$	—		$	163
Amount of allowance for loan losses for loans not deemed to be impaired	$	2,227		$	6,164		$	1,772	$	9,755		$	1,921		$	589		$	1,281		$	336		$	24,045
Loans:
Ending balance	$	19,522		$	549,290		$	145,063	$	692,778		$	222,881		$	11,474		$	200,085		$	—		$	1,841,093
Loans deemed to be impaired	$	95		$	399		$	—	$	3,707		$	208		$	—		$	—		$	—		$	4,409
Loans not deemed to be impaired	$	19,427		$	548,891		$	145,063	$	689,071		$	222,673		$	11,474		$	200,085		$	—		$	1,836,684

During the three and nine months ending September 30, 2016, the Company’s provision was primarily attributable to an increase in loan balances.

Further information pertaining to the allowance for loan losses for the three months ending September 30, 2015 follows:

	Construction and Land Development		Commercial and Industrial			Municipal		Commercial Real Estate			Residential Real Estate		Consumer			Home Equity		Unallocated			Total
	(in thousands)
Allowance for loan losses:
Balance at June 30, 2015	$	1,733	$	4,428		$	1,000	$	11,723		$	722	$	709		$	650	$	1,280		$	22,245
Charge-offs		—		(43	)		—		—			—		(86	)		—		—			(129	)
Recoveries		—		75			—		80			1		58			—		—			214
Provision		126		995			117		(1,086	)		115		(2	)		51		(316	)		—
Ending balance at September 30, 2015	$	1,859	$	5,455		$	1,117	$	10,717		$	838	$	679		$	701	$	964		$	22,330
Amount of allowance for loan losses for loans deemed to be impaired	$	11	$	25		$	—	$	98		$	36	$	—		$	91	$	—		$	261
Amount of allowance for loan losses for loans not deemed to be impaired	$	1,848	$	5,430		$	1,117	$	10,619		$	802	$	679		$	610	$	964		$	22,069
Loans:
Ending balance	$	27,308	$	378,154		$	87,016	$	701,523		$	264,105	$	10,633		$	172,091	$	—		$	1,640,830
Loans deemed to be impaired	$	100	$	539		$	—	$	1,692		$	927	$	—		$	91	$	—		$	3,349
Loans not deemed to be impaired	$	27,208	$	377,615		$	87,016	$	699,831		$	263,178	$	10,633		$	172,000	$	—		$	1,637,481

Further information pertaining to the allowance for loan losses for the nine months ending September 30, 2015 follows:

	Construction and Land Development		Commercial and Industrial			Municipal			Commercial Real Estate			Residential Real Estate		Consumer			Home Equity		Unallocated			Total
	(in thousands)
Allowance for loan losses:
Balance at December 31, 2104	$	1,592	$	4,757		$	1,488		$	11,199		$	776	$	810		$	599	$	1,097		$	22,318
Charge-offs		—		(95	)		—			(298	)		—		(220	)		—		—			(613	)
Recoveries		—		147			—			84			5		189			—		—			425
Provision		267		646			(371	)		(268	)		57		(100	)		102		(133	)		200
Ending balance at September 30, 2015	$	1,859	$	5,455		$	1,117		$	10,717		$	838	$	679		$	701	$	964		$	22,330
Amount of allowance for loan losses for loans deemed to be impaired	$	11	$	25		$	—		$	98		$	36	$	—		$	91	$	—		$	261
Amount of allowance for loan losses for loans not deemed to be impaired	$	1,848	$	5,430		$	1,117		$	10,619		$	802	$	679		$	610	$	964		$	22,069
Loans:
Ending balance	$	27,308	$	378,154		$	87,016		$	701,523		$	264,105	$	10,633		$	172,091	$	—		$	1,640,830
Loans deemed to be impaired	$	100	$	539		$	—		$	1,692		$	927	$	—		$	91	$	—		$	3,349
Loans not deemed to be impaired	$	27,208	$	377,615		$	87,016		$	699,831		$	263,178	$	10,633		$	172,000	$	—		$	1,637,481

The Company utilizes a six grade internal loan rating system for commercial real estate, construction and commercial loans as follows:

Loans rated 1-3 (Pass):

Loans in this category are considered “pass” rated loans with low to average risk.

Loans rated 4 (Monitor):

These loans represent classified loans that management is closely monitoring for credit quality. These loans have had or may have minor credit quality deterioration as of September 30, 2016 and December 31, 2015.

Loans rated 5 (Substandard):

Substandard loans represent classified loans that management is closely monitoring for credit quality. These loans have had more significant credit quality deterioration as of September 30, 2016 and December 31, 2015.

Loans rated 6 (Doubtful):

Doubtful loans represent classified loans that management is closely monitoring for credit quality. These loans had more significant credit quality deterioration as of September 30, 2016 and December 31, 2015 and are doubtful for full collection.

Impaired:

Impaired loans represent classified loans that management is closely monitoring for credit quality. A loan is classified as impaired when it is probable that the Company will be unable to collect all amounts due.

The following table presents the Company’s loans by risk rating at September 30, 2016.

	Construction and Land Development		Commercial and Industrial		Municipal		Commercial Real Estate		Total
	(in thousands)
Grade:
1-3 (Pass)	$	12,453	$	548,891	$	145,063	$	688,887	$	1,395,294
4 (Monitor)		6,974		—		—		184		7,158
5 (Substandard)		—		—		—		—		—
6 (Doubtful)		—		—		—		—		—
Impaired		95		399		—		3,707		4,201
Total	$	19,522	$	549,290	$	145,063	$	692,778	$	1,406,653

The following table presents the Company’s loans by risk rating at December 31, 2015.

	Construction and Land Development		Commercial and Industrial		Municipal		Commercial Real Estate		Total
	(in thousands)
Grade:
1-3 (Pass)	$	20,281	$	451,774	$	85,685	$	718,911	$	1,276,651
4 (Monitor)		7,042		18		—		917		7,977
5 (Substandard)		—		—		—		—		—
6 (Doubtful)		—		—		—		—		—
Impaired		98		443		—		1,678		2,219
Total	$	27,421	$	452,235	$	85,685	$	721,506	$	1,286,847

The Company has increased its exposure to larger loans to large institutions with publically available credit ratings beginning in 2015. These ratings are tracked as a credit quality indicator for these loans. Credit ratings issued by national organizations were utilized as credit quality indicators as presented in the following table at September 30, 2016 and are included within the total loan portfolio.

	Commercial and Industrial		Municipal		Commercial Real Estate		Total
	(in thousands)
Credit Rating:
Aaa – Aa3	$	331,240	$	67,427	$	6,836	$	405,503
A1 – A3		139,379		33,510		129,853		302,742
Baa1 – Baa3		—		37,088		130,081		167,169
Ba2		—		3,610		—		3,610
Total	$	470,619	$	141,635	$	266,770	$	879,024

Credit ratings issued by national organizations were utilized as credit quality indicators as presented in the following table at December 31, 2015.

	Commercial and Industrial		Municipal		Commercial Real Estate		Total
	(in thousands)
Credit Rating:
Aaa – Aa3	$	234,733	$	63,865	$	7,547	$	306,145
A1 – A3		140,419		7,400		130,872		278,691
Baa1 – Baa3		—		8,890		167,489		176,379
Ba2		—		4,480		—		4,480
Total	$	375,152	$	84,635	$	305,908	$	765,695

The Company utilized payment performance as credit quality indicators for the loan types listed below. The indicators are depicted in the table “aging of past due loans,” below.

Further information pertaining to the allowance for loan losses at September 30, 2016 follows:

	Accruing 30-89 Days Past Due		Non Accrual		Accruing Greater than 90 Days		Total Past Due		Current Loans		Total
	(in thousands)
Construction and land development	$	—	$	95	$	—	$	95	$	19,427	$	19,522
Commercial and industrial		318		49		—		367		548,923		549,290
Municipal		—		—		—		—		145,063		145,063
Commercial real estate		1,313		156		—		1,469		691,309		692,778
Residential real estate		866		656		—		1,522		221,359		222,881
Consumer and overdrafts		24		2		—		26		11,448		11,474
Home equity		563		—		—		563		199,522		200,085
Total	$	3,084	$	958	$	—	$	4,042	$	1,837,051	$	1,841,093

Further information pertaining to the allowance for loan losses at December 31, 2015 follows:

	Accruing 30-89 Days Past Due		Non Accrual		Accruing Greater than 90 Days		Total Past Due		Current Loans		Total
	(in thousands)
Construction and land development	$	—	$	99	$	—	$	99	$	27,322	$	27,421
Commercial and industrial		—		60		—		60		452,175		452,235
Municipal		—		—		—		—		85,685		85,685
Commercial real estate		1,462		174		—		1,636		719,870		721,506
Residential real estate		596		1,559		—		2,155		253,191		255,346
Consumer and overdrafts		6		—		—		6		11,317		11,323
Home equity		628		444		—		1,072		176,948		178,020
Total	$	2,692	$	2,336	$	—	$	5,028	$	1,726,508	$	1,731,536

A loan is impaired when, based on current information and events, it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. When a loan is impaired, the Company measures impairment based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except that as a practical expedient, the Company measures impairment based on a loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. Loans are charged-off when management believes that the collectability of the loan’s principal is not probable. The specific factors that management considers in making the determination that the collectability of the loan’s principal is not probable include: the delinquency status of the loan, the fair value of the collateral, if secured, and the financial strength of the borrower and/or guarantors. For collateral dependent loans, the amount of the recorded investment in a loan that exceeds the fair value of the collateral is charged-off against the allowance for loan losses in lieu of an allocation of a specific allowance amount when such an amount has been identified definitively as uncollectible. The Company’s policy for recognizing interest income on impaired loans is contained within Note 1 of the consolidated financial statements contained in the Company’s Annual Report for the fiscal year ended December 31, 2015.

The following is information pertaining to impaired loans for September 30, 2016:

	Carrying Value		Unpaid Principal Balance		Required Reserve		Average Carrying Value for 3 Months Ending 9/30/16		Interest Income Recognized for 3 Months Ending 9/30/16		Average Carrying Value for 9 Months Ending 9/30/16		Interest Income Recognized for 9 Months Ending 9/30/16
	(in thousands)
With no required reserve recorded:
Construction and land development	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and industrial		228		414		—		51		2		54		7
Municipal		—		—		—		—		—		—		—
Commercial real estate		593		593		—		594		9		310		30
Residential real estate		97		186		—		101		2		106		6
Consumer		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		—
Total	$	918	$	1,193	$	—	$	746	$	13	$	470	$	43
With required reserve recorded:
Construction and land development	$	95	$	108	$	4	$	96	$	—	$	97	$	—
Commercial and industrial		171		187		9		353		2		367		7
Municipal		—		—		—		—		—		—		—
Commercial real estate		3,114		3,219		143		3,128		31		2,251		64
Residential real estate		111		110		7		111		1		387		4
Consumer		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		36		—
Total	$	3,491	$	3,624	$	163	$	3,688	$	34	$	3,138	$	75
Total:
Construction and land development	$	95	$	108	$	4	$	96	$	—	$	97	$	—
Commercial and industrial		399		601		9		404		4		421		14
Municipal		—		—		—		—		—		—		—
Commercial real estate		3,707		3,812		143		3,722		40		2,561		94
Residential real estate		208		296		7		212		3		493		10
Consumer		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		36		—
Total	$	4,409	$	4,817	$	163	$	4,434	$	47	$	3,608	$	118

The following is information pertaining to impaired loans for September 30, 2015:

	Carrying Value		Unpaid Principal Balance		Required Reserve		Average Carrying Value for 3 Months Ending 9/30/15		Interest Income Recognized for 3 Months Ending 9/30/15		Average Carrying Value for 9 Months Ending 9/30/15		Interest Income Recognized for 9 Months Ending 9/30/15
	(in thousands)
With no required reserve recorded:
Construction and land development	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and industrial		12		12		—		27		—		36		—
Municipal		—		—		—		—		—		—		—
Commercial real estate		—		—		—		—		—		196		—
Residential real estate		119		204		—		122		2		128		6
Consumer		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		—
Total	$	131	$	216	$	—	$	149	$	2	$	360	$	6
With required reserve recorded:
Construction and land development	$	100	$	108	$	11	$	101	$	—	$	102	$	—
Commercial and industrial		527		728		25		551		5		670		16
Municipal		—		—		—		—		—		—		—
Commercial real estate		1,692		1,789		98		1,700		14		2,809		48
Residential real estate		808		809		36		811		1		817		7
Consumer		—		—		—		—		—		—		—
Home equity		91		91		91		91		—		91		—
Total	$	3,218	$	3,525	$	261	$	3,254	$	20	$	4,489	$	71
Total:
Construction and land development	$	100	$	108	$	11	$	101	$	—	$	102	$	—
Commercial and industrial		539		740		25		578		5		706		16
Municipal		—		—		—		—		—		—		—
Commercial real estate		1,692		1,789		98		1,700		14		3,005		48
Residential real estate		927		1,013		36		933		3		945		13
Consumer		—		—		—		—		—		—		—
Home equity		91		91		91		91		—		91		—
Total	$	3,349	$	3,741	$	261	$	3,403	$	22	$	4,849	$	77

There was one commercial real estate troubled debt restructuring during the nine month period ending September 30, 2016. The pre-modification and post-modification outstanding recorded investment was $2,091,000. The loan was modified for 2016, by reducing the interest rate as well as extending the term on the loan. The financial impact for the modification was $7,000 reduction in principal payments and $2,000 reduction in interest payments for the three month period. The financial impact for the modification was $10,000 reduction in principal payments and $2,000 reduction in interest payments for the nine month period.

There was no troubled debt restructuring during the three and nine month period ended September 30, 2015.

There were no troubled debt restructurings that subsequently defaulted during the three and nine month periods ending September 30, 2016.

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Reclassifications Out of Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2016

Text Block [Abstract]

Reclassifications Out of Accumulated Other Comprehensive Income

Note 5. Reclassifications Out of Accumulated Other Comprehensive Income (a)

Amount Reclassified from Accumulated Other Comprehensive Income

Details about Accumulated Other Comprehensive Income Components	Three Months Ended September 30, 2016			Three Months Ended September 30, 2015			Affected Line Item in the Statement where Net Income is Presented
	(in thousands)
Unrealized gains and losses on available-for-sale securities	$	19		$	52		Net gains on sales of investments
Tax (expense) or benefit		(7	)		(21	)	Provision for income taxes
Net of tax	$	12		$	31		Net income
Accretion of unrealized losses transferred	$	(809	)	$	(1,436	)	Interest on securities held-to-maturity
Tax (expense) or benefit		282			501		Provision for income taxes
Net of tax	$	(527	)	$	(935	)	Net income
Amortization of defined benefit pension items
Prior-service costs	$	(3	)(b)	$	(2	)(b)	Salaries and employee benefits
Actuarial gains (losses)		(401	)(b)		(352	)(b)	Salaries and employee benefits
Total before tax		(404	)		(354	)	Income before taxes
Tax (expense) or benefit		162			141		Provision for income taxes
Net of tax	$	(242	)	$	(213	)	Net income
Total reclassifications for the period	$	(757	)	$	(1,117	)	Net income
Details about Accumulated Other Comprehensive Income Components	Nine Months Ended September 30, 2016			Nine Months Ended September 30, 2015			Affected Line Item in the Statement where Net Income is Presented
	(in thousands)
Unrealized gains and losses on available-for-sale securities	$	64		$	170		Net gains on sales of investments
Tax (expense) or benefit		(25	)		(68	)	Provision for income taxes
Net of tax	$	39		$	102		Net income
Accretion of unrealized losses transferred	$	(3,490	)	$	(4,141	)	Interest on securities held-to-maturity
Tax (expense) or benefit		1,216			1,444		Provision for income taxes
Net of tax	$	(2,274	)	$	(2,697	)	Net income
Amortization of defined benefit pension items
Prior-service costs	$	(8	)(b)	$	(8	)(b)	Salaries and employee benefits
Actuarial gains (losses)		(1,203	)(b)		(1,056	)(b)	Salaries and employee benefits
Total before tax		(1,211	)		(1,064	)	Income before taxes
Tax (expense) or benefit		484			425		Provision for income taxes
Net of tax	$	(727	)	$	(639	)	Net income
Total reclassifications for the period	$	(2,962	)	$	(3,234	)	Net income, net of tax

(a) Amount in parentheses indicates reductions to net income.

(b) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Employee Benefits footnote (Note 7) for additional details).

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Earnings per Share ("EPS")

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Earnings per Share ("EPS")

Note 6. Earnings per Share (“EPS”)

Class A and Class B shares participate equally in undistributed earnings. Under the Company’s Articles of Organization, the holders of Class A Common Stock are entitled to receive dividends per share equal to at least 200% of dividends paid, if any, from time to time, on each share of Class B Common Stock.

Diluted EPS includes the dilutive effect of common stock equivalents; basic EPS excludes all common stock equivalents. The Company had no common stock equivalents outstanding for the periods ended September 30, 2015 and 2016.

The following table is a reconciliation of basic EPS and diluted EPS.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands except share and per share data)	2016		2015		2016		2015
Basic EPS Computation:
Numerator:
Net income, Class A	$	5,094	$	4,843	$	14,165	$	13,392
Net income, Class B		1,392		1,323		3,869		3,658
Denominator:
Weighted average shares outstanding, Class A		3,600,729		3,600,729		3,600,729		3,600,729
Weighted average shares outstanding, Class B		1,967,180		1,967,180		1,967,180		1,967,180
Basic EPS, Class A	$	1.41	$	1.35	$	3.93	$	3.72
Basic EPS, Class B		0.71		0.67		1.97		1.86
Diluted EPS Computation:
Numerator:
Net income, Class A	$	5,094	$	4,843	$	14,165	$	13,392
Net income, Class B		1,392		1,323		3,869		3,658
Total net income, for diluted EPS, Class A computation		6,486		6,166		18,034		17,050
Denominator:
Weighted average shares outstanding, basic, Class A		3,600,729		3,600,729		3,600,729		3,600,729
Weighted average shares outstanding, Class B		1,967,180		1,967,180		1,967,180		1,967,180
Weighted average shares outstanding diluted, Class A		5,567,909		5,567,909		5,567,909		5,567,909
Weighted average shares outstanding, Class B		1,967,180		1,967,180		1,967,180		1,967,180
Diluted EPS, Class A	$	1.16	$	1.11	$	3.24	$	3.06
Diluted EPS, Class B		0.71		0.67		1.97		1.86

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Employee Benefits

9 Months Ended

Sep. 30, 2016

Compensation and Retirement Disclosure [Abstract]

Employee Benefits

Note 7. Employee Benefits

The Company provides pension benefits to its employees under a noncontributory, defined benefit plan which is funded on a current basis in compliance with the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”) and recognizes costs over the estimated employee service period.

The Company also has a Supplemental Executive Insurance/Retirement Plan (the “Supplemental Plan”) which is limited to certain officers and employees of the Company. The Supplemental Plan is accrued on a current basis and recognizes costs over the estimated employee service period.

Executive officers of the Company and its subsidiaries who have at least one year of service may participate in the Supplemental Plan. The Supplemental Plan is voluntary and participants are required to contribute to its cost. Life insurance policies, which are owned by the Company, are purchased covering the lives of each participant.

Effective January 1, 2016, the Company changed its estimate of the service and interest components of the net periodic benefit cost. Previously, the Company estimated the service and interest cost components utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation. The new estimate utilizes a full yield curve approach in the estimation of these components by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to their underlying projected cash flows. The new estimate provided a more precise measurement of service and interests costs by improving the correlation between projected benefit cash flows and their corresponding spot rates. The change does not affect the measurement of the Company’s benefit obligations and it is accounted for as a change in accounting estimate, which is applied prospectively.

Components of Net Periodic Benefit Cost (Credit) for the Three Months Ended September 30,

	Pension Benefits						Supplemental Insurance/     Retirement Plan
	2016			2015			2016		2015
	(in thousands)
Service cost	$	318		$	336		$	455	$	397
Interest		340			394			334		341
Expected return on plan assets		(694	)		(688	)		—		—
Recognized prior service cost (benefit)		(26	)		(26	)		29		29
Recognized net actuarial losses		200			203			200		150
Net periodic benefit (credit) cost	$	138		$	219		$	1,018	$	917

Components of Net Periodic Benefit Cost (Credit) for the Nine Months Ended September 30,

	Pension Benefits						Supplemental Insurance/     Retirement Plan
	2016			2015			2016		2015
	(in thousands)
Service cost	$	954		$	1,008		$	1,366	$	1,191
Interest		1,020			1,182			1,002		1,023
Expected return on plan assets		(2,082	)		(2,064	)		—		—
Recognized prior service cost (benefit)		(78	)		(78	)		87		87
Recognized net actuarial losses		600			610			600		449
Net periodic benefit (credit) cost	$	414		$	658		$	3,055	$	2,750

Contributions

The company intends to contribute $2,075,000 to the Pension Plan in 2016. As of September 30, 2016, $1,825,000 has been contributed.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 8. Fair Value Measurements

The Company follows FASB ASC 820-10, Fair Value Measurements and Disclosures, (formerly SFAS 157, “Fair Value Measurements,”) which among other things, requires enhanced disclosures about assets and liabilities carried at fair value. ASC 820-10 establishes a hierarchal disclosure framework associated with the level of pricing observability utilized in measuring financial instruments at fair value. The three broad levels of the hierarchy are as follows:

Level I – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The type of financial instruments included in Level I are highly liquid cash instruments with quoted prices such as G-7 government, agency securities, listed equities and money market securities, as well as listed derivative instruments.

Level II – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these financial instruments include cash instruments for which quoted prices are available but traded less frequently, derivative instruments whose fair value have been derived using a model where inputs to the model are directly observable in the market, or can be derived principally from or corroborated by observable market data, and instruments that are fair valued using other financial instruments, the parameters of which can be directly observed. Instruments which are generally included in this category are corporate bonds and loans, mortgage whole loans and municipal bonds.

Level III – Instruments that have little to no pricing observability as of the reported date. These financial instruments do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. Instruments that are included in this category generally include certain commercial mortgage loans, certain private equity investments, and distressed debt and non-investment grade residual interests in securitizations.

The results of the fair value hierarchy as of September 30, 2016, are as follows:

Financial Instruments Measured at Fair Value on a Recurring Basis:

	Securities AFS Fair Value Measurements Using
	Carrying Value		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
	(in thousands)
U.S. Treasury	$	2,000	$	—	$	2,000	$	—
U.S. Government Sponsored Enterprises		15,009		—		15,009		—
SBA Backed Securities		58,345		—		58,345		—
U.S. Government Agency and Sponsored Mortgage Backed Securities		264,454		—		264,454		—
Privately Issued Residential Mortgage Backed Securities		1,177		—		1,177		—
Obligations Issued by States and Political Subdivisions		179,911		—		—		179,911
Other Debt Securities		4,961		—		4,961		—
Equity Securities		275		275		—		—
Total	$	526,132	$	275	$	345,946	$	179,911
Financial Instruments Measured at Fair Value on a Non-recurring Basis:
Impaired Loans	$	251	$	—	$	—	$	251

Impaired loan balances represent those collateral dependent loans where management has estimated the credit loss by comparing the loan’s carrying value against the expected realizable fair value of the collateral. Fair value is generally determined through a review process that includes independent appraisals, discounted cash flows, or other external assessments of the underlying collateral, which generally include various Level 3 inputs which are not observable. The Company discounts the fair values, as appropriate, based on management’s observations of the local real estate market for loans in this category.

Appraisals, discounted cash flows and real estate tax assessments are reviewed quarterly. There is no specific policy regarding how frequently appraisals will be updated. Adjustments are made to appraisals and real estate tax assessments based on management’s estimate of changes in real estate values. Within the past twelve months there have been no updated appraisals, however, all impaired loans have been reviewed during the past quarter using either a discounted cash flow analysis, appraisal of collateral or other type of real estate tax assessment. The types of adjustments that are made to specific provisions (credits) relate to impaired loans recognized for the three and nine month periods ended September 30, 2016 amounted to ($7,000) and ($143,000), respectively.

There were no transfers between level 1, 2 and 3 for the nine months ended September 30, 2016. There were no liabilities measured at fair value on a recurring or nonrecurring basis during the nine month period ended September 30, 2016.

The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands). Management continues to monitor the assumptions used to value the assets listed below.

Asset	Fair Value		Valuation Technique	Unobservable Input	Unobservable Input Value or Range
Securities AFS (4)	$	179,911	Discounted cash flow	Discount rate	0%-1% (3)
Impaired Loans	$	251	Appraisal of collateral (1)	Appraisal adjustments (2)	0%-30% discount

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses.

(3) Weighted averages.

(4) Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value. There was one auction rate security whose fair value is based on the evaluation of the underlying issuer, prevailing interest rates and market liquidity.

The changes in Level 3 securities for the nine month period ended September 30, 2016 are shown in the table below:

	Auction Rate Securities		Obligations Issued by States & Political Subdivisions			Equity Securities			Total
	(in thousands)
Balance at December 31, 2015	$	3,820	$	153,140		$	37		$	156,997
Purchases		—		181,752			—			181,752
Maturities and calls		—		(159,116	)		(37	)		(159,153	)
Amortization		—		(163	)		—			(163	)
Changes in fair value		478		—			—			478
Balance at September 30, 2016	$	4,298	$	175,613		$	—		$	179,911

The amortized cost of Level 3 securities was $180,315,000 at September 30, 2016 with an unrealized loss of $404,000. The securities in this category are generally municipal securities with no readily determinable fair value or failed auction rate securities. Management evaluated the fair value of these securities based on an evaluation of the underlying issuer, prevailing rates and market liquidity.

The changes in Level 3 securities for the nine month period ended September 30, 2015, are shown in the table below:

	Auction Rate Securities		Obligations Issued by States & Political Subdivisions			Equity Securities			Total
	(in thousands)
Balance at December 31, 2014	$	3,820	$	92,964		$	102		$	96,886
Purchases		—		166,339			—			166,339
Maturities and calls		—		(115,989	)		(65	)		(116,054	)
Amortization		—		(35	)		—			(35	)
Changes in fair value		—		—			—			—
Balance at September 30, 2015	$	3,820	$	143,279		$	37		$	147,136

The amortized cost of Level 3 securities was $148,012,000 at September 30, 2015 with an unrealized loss of $876,000. The securities in this category are generally equity investments, municipal securities with no readily determinable fair value or failed auction rate securities. Management evaluated the fair value of these securities based on an evaluation of the underlying issuer, prevailing rates and market liquidity.

The results of the fair value hierarchy as of December 31, 2015, are as follows:

Financial Instruments Measured at Fair Value on a Recurring Basis:

	Securities AFS Fair Value Measurements Using
	Carrying Value		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
	(in thousands)
U.S. Treasury	$	1,989	$	—	$	1,989	$	—
U.S. Government Sponsored Enterprises		—		—		—		—
SBA Backed Securities		5,989		—		5,989		—
U.S. Government Agency and Sponsored Mortgage Backed Securities		233,526		—		233,526		—
Privately Issued Residential Mortgage Backed Securities		1,434		—		1,434		—
Obligations Issued by States and Political Subdivisions		156,960		—		—		156,960
Other Debt Securities		4,473		—		4,473		—
Equity Securities		252		215		—		37
Total	$	404,623	$	215	$	247,411	$	156,997
Financial Instruments Measured at Fair Value on a Non-recurring Basis:
Impaired Loans	$	1,056	$	—	$	—	$	1,056

Impaired loan balances represent those collateral dependent loans where management has estimated the credit loss by comparing the loan’s carrying value against the expected realizable fair value of the collateral. Fair value is generally determined through a review process that includes independent appraisals, discounted cash flows, or other external assessments of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. The Company discounts the fair values, as appropriate, based on management’s observations of the local real estate market for loans in this category.

Appraisals, discounted cash flows and real estate tax assessments are reviewed quarterly. There is no specific policy regarding how frequently appraisals will be updated. Adjustments are made to appraisals and real estate tax assessments based on management’s estimate of changes in real estate values. Within the past twelve months there have been no updated appraisals, however, all impaired loans have been reviewed during the past quarter using either a discounted cash flow analysis, appraisal of collateral or other type of real estate tax assessment. The types of adjustments that are made to specific provisions (credits) relate to impaired loans recognized for 2015 for the estimated credit loss amounted to ($165,000).

There were no transfers between level 1, 2 and 3 for the year ended December 31, 2015. There were no liabilities measured at fair value on a recurring or nonrecurring basis during the year ended December 31, 2015.

The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands). Management continues to monitor the assumptions used to value the assets listed below.

Asset	Fair Value		Valuation Technique	Unobservable Input	Unobservable Input     Value or Range
Securities AFS (4)	$	156,997	Discounted cash flow	Discount rate	0%-1% (3)
Impaired Loans	$	1,056	Appraisal of collateral (1)	Appraisal adjustments (2)	0%-30% discount

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses.

(3) Weighted averages

(4) Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value. There was one auction rate security whose fair value is based on the evaluation of the underlying issuer, prevailing interest rates and market liquidity.

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Fair Values of Financial Instruments

9 Months Ended

Sep. 30, 2016

Investments, All Other Investments [Abstract]

Fair Values of Financial Instruments

Note 9. Fair Values of Financial Instruments

The following methods and assumptions were used by the Company in estimating fair values of its financial instruments. Excluded from this disclosure are all nonfinancial instruments. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company.

The assumptions used below are expected to approximate those that market participants would use in valuing these financial instruments.

Fair value estimates are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of timing, amount of expected future cash flows and the credit standing of the issuer. Such estimates do not consider the tax impact of the realization of unrealized gains or losses. In some cases, the fair value estimates cannot be substantiated by comparison to independent markets. In addition, the disclosed fair value may not be realized in the immediate settlement of the financial instrument. Care should be exercised in deriving conclusions about our business, its value or financial position based on the fair value information of financial instruments presented below.

Securities held-to-maturity: The fair values of these securities were based on quoted market prices, where available, as provided by third-party investment portfolio pricing vendors. If quoted market prices were not available, fair values provided by the vendors were based on quoted market prices of comparable instruments in active markets and/or based on a matrix pricing methodology which employs The Bond Market Association’s standard calculations for cash flow and price/yield analysis, live benchmark bond pricing and terms/condition data available from major pricing sources. Management regards the inputs and methods used by third party pricing vendors to be “Level 2 inputs and methods” as defined in the “fair value hierarchy” provided by FASB.

Loans Held-for-Sale: Fair value is measured using quoted market prices when available. These assets are typically categorized as Level 1. If quoted market prices are not available, comparable market values may be utilized. These assets are typically categorized as Level 2.

Loans: For variable-rate loans, that reprice frequently and with no significant change in credit risk, fair values are based on carrying amounts. The fair value of other loans is estimated using discounted cash flow analysis, based on interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Incremental credit risk for nonperforming loans has been considered.

Time deposits: The fair value of time deposits was estimated using a discounted cash flow approach that applies prevailing market interest rates for similar maturity instruments. The fair values of the Company’s time deposit liabilities do not take into consideration the value of the Company’s long-term relationships with depositors, which may have significant value.

Other borrowed funds: The fair value of other borrowed funds is based on the discounted value of contractual cash flows. The discount rate used is estimated based on the rates currently offered for other borrowed funds of similar remaining maturities.

Subordinated debentures: The fair value of subordinated debentures is based on the discounted value of contractual cash flows. The discount rate used is estimated based on the rates currently offered for other subordinated debentures of similar remaining maturities.

The following presents (in thousands) the carrying amount, estimated fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2016 and December 31, 2015. This table excludes financial instruments for which the carrying amount approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, short-term investments, FHLBB stock and accrued interest receivable. Financial liabilities for which the fair value approximates carrying value include non-maturity deposits, short-term borrowings and accrued interest payable.

	Carrying Amount		Estimated Fair Value		Fair Value Measurements Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
	(in thousands)
September 30, 2016
Financial assets:
Securities held-to-maturity	$	1,565,191	$	1,589,183	$	—	$	1,589,183	$	—
Loans (1)		1,816,885		1,830,287		—		—		1,830,287
Financial liabilities:
Time deposits		454,631		457,797		—		457,797		—
Other borrowed funds		293,000		302,163		—		302,163		—
Subordinated debentures		36,083		36,083		—		—		36,083
December 31, 2015
Financial assets:
Securities held-to-maturity	$	1,438,903	$	1,438,960	$	—	$	1,438,960	$	—
Loans (1)		1,708,461		1,677,270		—		—		1,677,270
Financial liabilities:
Time deposits		473,426		474,046		—		474,046		—
Other borrowed funds		368,000		372,209		—		372,209		—
Subordinated debentures		36,083		36,083		—		—		36,083

(1) Comprised of loans (including collateral dependent impaired loans), net of deferred loan costs and the allowance for loan losses.

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Recent Accounting Developments

9 Months Ended

Sep. 30, 2016

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Developments

Note 10. Recent Accounting Developments

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU is intended to create a single source of revenue guidance which is more principles based than current revenue guidance. The guidance affects any entity that either enters into contracts with customers to transfer goods or services, or enters into contracts for the transfer of non-financial assets, unless those contracts are within the scope of other standards. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” to amend the effective date of ASU 2014-09. The amendments in ASU 2014-09 are effective for annual and interim periods within fiscal years beginning after December 15, 2017. Earlier adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The FASB has since issued additional related ASUs amendments intended to clarify certain aspects and improve understanding of the implementation guidance of Topic 606 but do not change the core principles of the guidance in Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements of Topic 606. The Company is currently evaluating the potential impact of the ASU and its amendments on the Company’s financial statements and results of operations.

In January 2016, FASB issued ASU 2016-1, “Financial Instruments-Overall” (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities. This ASU significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods therein. The Company is currently assessing the applicability of this ASU and has not determined the impact, if any, as of September 30, 2016.

In February 2016, the FASB issued ASU 2016-02, Leases. This ASU requires lessees to put most leases on their balance sheet but recognize expenses on their income statements in a manner similar to today’s accounting. This ASU also eliminates today’s real estate-specific provisions for all companies. For lessors, this ASU modifies the classification criteria and the accounting for sales-type and direct financing leases. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods therein. Early adoption is permitted. The Company is currently assessing the applicability of this ASU and has not determined the impact, if any, as of September 30, 2016.

In March 2016, the FASB issued ASU 2016-07, Investments—Equity Method and Joint Ventures (Topic 323) Simplifying the Transition to the Equity Method of Accounting. This ASU requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. This ASU is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The effect of this update is not expected to have a material impact on the Company’s consolidated financial position.

In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This ASU was issued as part of the FASB Simplification Initiative which intends to reduce the complexity of GAAP while improving usefulness to users. There are eight main items in this ASU that contribute to the simplification of share-based accounting. For public entities, this ASU is effective for the fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. Management is currently assessing the applicability of ASU 2016-09 and has not determined the impact, if any, as of September 30, 2016.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU was issued to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently assessing this ASU and has not determined the impact, if any, as of September 30, 2016.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 326) Classification of Certain Cash Receipts and Cash Payments. Stakeholders indicated that there is diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. This ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is currently assessing the applicability of this ASU and has not determined the impact, if any, as of September 30, 2016.

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Recent Accounting Developments (Policies)

9 Months Ended

Sep. 30, 2016

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Developments

Note 10. Recent Accounting Developments

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU is intended to create a single source of revenue guidance which is more principles based than current revenue guidance. The guidance affects any entity that either enters into contracts with customers to transfer goods or services, or enters into contracts for the transfer of non-financial assets, unless those contracts are within the scope of other standards. In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” to amend the effective date of ASU 2014-09. The amendments in ASU 2014-09 are effective for annual and interim periods within fiscal years beginning after December 15, 2017. Earlier adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The FASB has since issued additional related ASUs amendments intended to clarify certain aspects and improve understanding of the implementation guidance of Topic 606 but do not change the core principles of the guidance in Topic 606. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements of Topic 606. The Company is currently evaluating the potential impact of the ASU and its amendments on the Company’s financial statements and results of operations.

In January 2016, FASB issued ASU 2016-1, “Financial Instruments-Overall” (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities. This ASU significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods therein. The Company is currently assessing the applicability of this ASU and has not determined the impact, if any, as of September 30, 2016.

In February 2016, the FASB issued ASU 2016-02, Leases. This ASU requires lessees to put most leases on their balance sheet but recognize expenses on their income statements in a manner similar to today’s accounting. This ASU also eliminates today’s real estate-specific provisions for all companies. For lessors, this ASU modifies the classification criteria and the accounting for sales-type and direct financing leases. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods therein. Early adoption is permitted. The Company is currently assessing the applicability of this ASU and has not determined the impact, if any, as of September 30, 2016.

In March 2016, the FASB issued ASU 2016-07, Investments—Equity Method and Joint Ventures (Topic 323) Simplifying the Transition to the Equity Method of Accounting. This ASU requires that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. This ASU is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The effect of this update is not expected to have a material impact on the Company’s consolidated financial position.

In March 2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This ASU was issued as part of the FASB Simplification Initiative which intends to reduce the complexity of GAAP while improving usefulness to users. There are eight main items in this ASU that contribute to the simplification of share-based accounting. For public entities, this ASU is effective for the fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. Management is currently assessing the applicability of ASU 2016-09 and has not determined the impact, if any, as of September 30, 2016.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU was issued to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently assessing this ASU and has not determined the impact, if any, as of September 30, 2016.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 326) Classification of Certain Cash Receipts and Cash Payments. Stakeholders indicated that there is diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. This ASU addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is currently assessing the applicability of this ASU and has not determined the impact, if any, as of September 30, 2016.

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Securities Available-for-Sale (Tables)

9 Months Ended

Sep. 30, 2016

Text Block [Abstract]

Summary of Securities Available-for-Sale

	September 30, 2016								December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
U.S. Treasury	$	2,000	$	—	$	—	$	2,000	$	1,999	$	—	$	10	$	1,989
U.S. Government Sponsored Enterprises		15,000		9		—		15,009		—		—		—		—
SBA Backed Securities		58,496		11		162		58,345		5,983		8		2		5,989
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		264,545		346		437		264,454		232,967		859		300		233,526
Privately Issued Residential Mortgage-Backed Securities		1,190		2		15		1,177		1,437		10		13		1,434
Obligations Issued by States and Political Subdivisions		180,315		—		404		179,911		157,838		—		878		1 56,960
Other Debt Securities		5,100		15		154		4,961		4,600		3		130		4,473
Equity Securities		116		159		—		275		153		99		—		252
Total	$	526,762	$	542	$	1,172	$	526,132	$	404,977	$	979	$	1,333	$	404,623

Maturity Distribution of Securities Available-for-Sale

The following table shows the maturity distribution of the Company’s securities available-for-sale at September 30, 2016.

	Amortized Cost		Fair Value
	(in thousands)
Within one year	$	186,348	$	186,336
After one but within five years		203,010		202,873
After five but within ten years		130,087		129,948
More than 10 years		5,701		5,313
Non-maturing		1,616		1,662
Total	$	526,762	$	526,132

Continuous Unrealized Loss Position for Less than 12 Months and 12 Months or Longer

The following table shows the temporarily impaired securities of the Company’s available-for-sale portfolio at September 30, 2016. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for less than 12 months and a continuous loss position for 12 months or longer. There are 41 and 15 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 282 holdings at September 30, 2016.

	September 30, 2016
	Less than 12 months				12 months or longer				Total
Temporarily Impaired Investments	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. Treasury	$	—	$	—	$	—	$	—	$	—	$	—
SBA Backed Securities		52,809		160		971		2		53,780		162
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		128,839		298		33,439		139		162,278		437
Privately Issued Residential Mortgage-Backed Securities		373		1		430		14		803		15
Obligations Issued by States and Political Subdivisions		—		—		4,298		404		4,298		404
Other Debt Securities		460		40		1,886		114		2,346		154
Total temporarily impaired securities	$	182,481	$	499	$	41,024	$	673	$	223,505	$	1,172

The following table shows the temporarily impaired securities of the Company’s available-for-sale portfolio at December 31, 2015. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for less than 12 months and a continuous loss position for 12 months or longer. There are 14 and 11 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 290 holdings at December 31, 2015.

	December 31, 2015
	Less than 12 months				12 months or longer				Total
Temporarily Impaired Investments	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. Treasury	$	1,989	$	10	$	—	$	—	$	1,989	$	10
SBA Backed Securities		1,031		2		—		—		1,031		2
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		26,519		52		49,341		248		75,860		300
Privately Issued Residential Mortgage-Backed Securities		—		—		490		13		490		13
Obligations Issued by States and Political Subdivisions		—		—		3,820		878		3,820		878
Other Debt Securities		497		3		1,373		127		1,870		130
Total temporarily impaired securities	$	30,036	$	67	$	55,024	$	1,266	$	85,060	$	1,333

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Investment Securities Held-to-Maturity (Tables)

9 Months Ended

Sep. 30, 2016

Text Block [Abstract]

Summary of Held-to-Maturity Securities

	September 30, 2016								December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
U.S. Government Sponsored Enterprises	$	165,176	$	2,577	$	16	$	167,737	$	186,734	$	2,234	$	141	$	188,827
SBA Backed Securities		20,926		69		—		20,995		—		—		—		—
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		1,379,089		22,755		1,393		1,400,451		1,252,169		7,547		9,583		1,250,133
Total	$	1,565,191	$	25,401	$	1,409	$	1,589,183	$	1,438,903	$	9,781	$	9,724	$	1,438,960

Company's Securities Held-to-Maturity

The following table shows the maturity distribution of the Company’s securities held-to-maturity at September 30, 2016.

	Amortized Cost		Fair Value
	(in thousands)
Within one year	$	15,191	$	15,314
After one but within five years		1,360,309		1,379,055
After five but within ten years		186,544		191,613
More than ten years		3,147		3,201
Total	$	1,565,191	$	1,589,183

Unrealized Market Loss of Securities

The following table shows the temporarily impaired securities of the Company’s held-to-maturity portfolio at September 30, 2016. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months or longer. There are 33 and 15 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 357 holdings at September 30, 2016.

	September 30, 2016
	Less Than 12 Months				12 Months or Longer				Total
Temporarily Impaired Investments	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. Government Sponsored Enterprises	$	41,984	$	16	$	—	$	—	$	41,984	$	16
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		162,780		645		57,854		748		220,634		1,393
Total temporarily impaired securities	$	204,764	$	661	$	57,854	$	748	$	262,618	$	1,409

The following table shows the temporarily impaired securities of the Company’s held-to-maturity portfolio at December 31, 2015. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for less than 12 months and a continuous loss position for 12 months or longer. There are 101 and 26 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 322 holdings at December 31, 2015.

	December 31, 2015
	Less Than 12 Months				12 Months or Longer				Total
Temporarily Impaired Investments	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
U.S. Government Sponsored Enterprises	$	9,859	$	141	$	—	$	—	$	9,859	$	141
U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities		626,218		6,657		123,864		2,926		750,082		9,583
Total temporarily impaired securities	$	636,077	$	6,798	$	123,864	$	2,926	$	759,941	$	9,724

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Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Summary of Changes in Allowance for Loan Losses

The following table summarizes the changes in the Company’s allowance for loan losses for the periods indicated.

	Three months ended September 30,						Nine months ended September 30,
	2016			2015			2016			2015
	(in thousands)
Allowance for loan losses, beginning of period	$	23,863		$	22,245		$	23,075		$	22,318
Loans charged off		(118	)		(129	)		(298	)		(613	)
Recoveries on loans previously charged-off		93			214			345			425
Net recoveries (charge-offs)		(25	)		85			47			(188	)
Provision charged to expense		375			—			1,175			200
Reclassification to other liabilities*		(5	)		—			(89	)		—
Allowance for loan losses, end of period	$	24,208		$	22,330		$	24,208		$	22,330

* The reclassification relates to allowance for loan losses allocations on unused commitments that have been reclassified to other liabilities.

Summary of Allowance for Loan Losses

Further information pertaining to the allowance for loan losses for the three months ending September 30, 2016 follows:

	Construction and Land Development			Commercial and Industrial		Municipal			Commercial Real Estate			Residential Real Estate		Consumer			Home Equity			Unallocated		Total
	(in thousands)
Allowance for loan losses:
Balance at June 30, 2016	$	2,234		$	5,842	$	1,801		$	10,650		$	1,302	$	608		$	1,158		$	268	$	23,863
Charge-offs		—			—		—			—			—		(91	)		(27	)		—		(118	)
Recoveries		—			24		—			—			2		67			—			—		93
Provision		(3	)		307		(29	)		(752	)		624		5			155			68		375
Reclassification to other liabilities		—			—		—			—			—		—			(5	)		—		(5	)
Ending balance at September 30, 2016	$	2,231		$	6,173	$	1,772		$	9,898		$	1,928	$	589		$	1,281		$	336	$	24,208
Amount of allowance for loan losses for loans deemed to be impaired	$	4		$	9	$	—		$	143		$	7	$	—		$	—		$	—	$	163
Amount of allowance for loan losses for loans not deemed to be impaired	$	2,227		$	6,164	$	1,772		$	9,755		$	1,921	$	589		$	1,281		$	336	$	24,045
Loans:
Ending balance	$	19,522		$	549,290	$	145,063		$	692,778		$	222,881	$	11,474		$	200,085		$	—	$	1,841,093
Loans deemed to be impaired	$	95		$	399	$	—		$	3,707		$	208	$	—		$	—		$	—	$	4,409
Loans not deemed to be impaired	$	19,427		$	548,891	$	145,063		$	689,071		$	222,673	$	11,474		$	200,085		$	—	$	1,836,684

Further information pertaining to the allowance for loan losses for the nine months ending September 30, 2016 follows:

	Construction and Land Development			Commercial and Industrial			Municipal		Commercial Real Estate			Residential Real Estate			Consumer			Home Equity			Unallocated			Total
	(in thousands)
Allowance for loan losses:
Balance at December 31, 2015	$	2,041		$	5,899		$	994	$	10,589		$	1,320		$	644		$	1,077		$	511		$	23,075
Charge-offs		—			—			—		—			—			(271	)		(27	)		—			(298	)
Recoveries		—			115			—		—			5			225			—			—			345
Provision		193			188			778		(680	)		605			(6	)		272			(175	)		1,175
Reclassification to other liabilities		(3	)		(29	)		—		(11	)		(2	)		(3	)		(41	)		—			(89	)
Ending balance at September 30, 2016	$	2,231		$	6,173		$	1,772	$	9,898		$	1,928		$	589		$	1,281		$	336		$	24,208
Amount of allowance for loan losses for loans deemed to be impaired	$	4		$	9		$	—	$	143		$	7		$	—		$	—		$	—		$	163
Amount of allowance for loan losses for loans not deemed to be impaired	$	2,227		$	6,164		$	1,772	$	9,755		$	1,921		$	589		$	1,281		$	336		$	24,045
Loans:
Ending balance	$	19,522		$	549,290		$	145,063	$	692,778		$	222,881		$	11,474		$	200,085		$	—		$	1,841,093
Loans deemed to be impaired	$	95		$	399		$	—	$	3,707		$	208		$	—		$	—		$	—		$	4,409
Loans not deemed to be impaired	$	19,427		$	548,891		$	145,063	$	689,071		$	222,673		$	11,474		$	200,085		$	—		$	1,836,684

During the three and nine months ending September 30, 2016, the Company’s provision was primarily attributable to an increase in loan balances.

Further information pertaining to the allowance for loan losses for the three months ending September 30, 2015 follows:

	Construction and Land Development		Commercial and Industrial			Municipal		Commercial Real Estate			Residential Real Estate		Consumer			Home Equity		Unallocated			Total
	(in thousands)
Allowance for loan losses:
Balance at June 30, 2015	$	1,733	$	4,428		$	1,000	$	11,723		$	722	$	709		$	650	$	1,280		$	22,245
Charge-offs		—		(43	)		—		—			—		(86	)		—		—			(129	)
Recoveries		—		75			—		80			1		58			—		—			214
Provision		126		995			117		(1,086	)		115		(2	)		51		(316	)		—
Ending balance at September 30, 2015	$	1,859	$	5,455		$	1,117	$	10,717		$	838	$	679		$	701	$	964		$	22,330
Amount of allowance for loan losses for loans deemed to be impaired	$	11	$	25		$	—	$	98		$	36	$	—		$	91	$	—		$	261
Amount of allowance for loan losses for loans not deemed to be impaired	$	1,848	$	5,430		$	1,117	$	10,619		$	802	$	679		$	610	$	964		$	22,069
Loans:
Ending balance	$	27,308	$	378,154		$	87,016	$	701,523		$	264,105	$	10,633		$	172,091	$	—		$	1,640,830
Loans deemed to be impaired	$	100	$	539		$	—	$	1,692		$	927	$	—		$	91	$	—		$	3,349
Loans not deemed to be impaired	$	27,208	$	377,615		$	87,016	$	699,831		$	263,178	$	10,633		$	172,000	$	—		$	1,637,481

Further information pertaining to the allowance for loan losses for the nine months ending September 30, 2015 follows:

	Construction and Land Development		Commercial and Industrial			Municipal			Commercial Real Estate			Residential Real Estate		Consumer			Home Equity		Unallocated			Total
	(in thousands)
Allowance for loan losses:
Balance at December 31, 2104	$	1,592	$	4,757		$	1,488		$	11,199		$	776	$	810		$	599	$	1,097		$	22,318
Charge-offs		—		(95	)		—			(298	)		—		(220	)		—		—			(613	)
Recoveries		—		147			—			84			5		189			—		—			425
Provision		267		646			(371	)		(268	)		57		(100	)		102		(133	)		200
Ending balance at September 30, 2015	$	1,859	$	5,455		$	1,117		$	10,717		$	838	$	679		$	701	$	964		$	22,330
Amount of allowance for loan losses for loans deemed to be impaired	$	11	$	25		$	—		$	98		$	36	$	—		$	91	$	—		$	261
Amount of allowance for loan losses for loans not deemed to be impaired	$	1,848	$	5,430		$	1,117		$	10,619		$	802	$	679		$	610	$	964		$	22,069
Loans:
Ending balance	$	27,308	$	378,154		$	87,016		$	701,523		$	264,105	$	10,633		$	172,091	$	—		$	1,640,830
Loans deemed to be impaired	$	100	$	539		$	—		$	1,692		$	927	$	—		$	91	$	—		$	3,349
Loans not deemed to be impaired	$	27,208	$	377,615		$	87,016		$	699,831		$	263,178	$	10,633		$	172,000	$	—		$	1,637,481

Loans by Risk Rating

The following table presents the Company’s loans by risk rating at September 30, 2016.

	Construction and Land Development		Commercial and Industrial		Municipal		Commercial Real Estate		Total
	(in thousands)
Grade:
1-3 (Pass)	$	12,453	$	548,891	$	145,063	$	688,887	$	1,395,294
4 (Monitor)		6,974		—		—		184		7,158
5 (Substandard)		—		—		—		—		—
6 (Doubtful)		—		—		—		—		—
Impaired		95		399		—		3,707		4,201
Total	$	19,522	$	549,290	$	145,063	$	692,778	$	1,406,653

The following table presents the Company’s loans by risk rating at December 31, 2015.

	Construction and Land Development		Commercial and Industrial		Municipal		Commercial Real Estate		Total
	(in thousands)
Grade:
1-3 (Pass)	$	20,281	$	451,774	$	85,685	$	718,911	$	1,276,651
4 (Monitor)		7,042		18		—		917		7,977
5 (Substandard)		—		—		—		—		—
6 (Doubtful)		—		—		—		—		—
Impaired		98		443		—		1,678		2,219
Total	$	27,421	$	452,235	$	85,685	$	721,506	$	1,286,847

Loans by Credit Ratings Issued by National Organizations

Credit ratings issued by national organizations were utilized as credit quality indicators as presented in the following table at September 30, 2016 and are included within the total loan portfolio.

	Commercial and Industrial		Municipal		Commercial Real Estate		Total
	(in thousands)
Credit Rating:
Aaa – Aa3	$	331,240	$	67,427	$	6,836	$	405,503
A1 – A3		139,379		33,510		129,853		302,742
Baa1 – Baa3		—		37,088		130,081		167,169
Ba2		—		3,610		—		3,610
Total	$	470,619	$	141,635	$	266,770	$	879,024

Credit ratings issued by national organizations were utilized as credit quality indicators as presented in the following table at December 31, 2015.

	Commercial and Industrial		Municipal		Commercial Real Estate		Total
	(in thousands)
Credit Rating:
Aaa – Aa3	$	234,733	$	63,865	$	7,547	$	306,145
A1 – A3		140,419		7,400		130,872		278,691
Baa1 – Baa3		—		8,890		167,489		176,379
Ba2		—		4,480		—		4,480
Total	$	375,152	$	84,635	$	305,908	$	765,695

Aging of Past Due Loan Losses

Further information pertaining to the allowance for loan losses at September 30, 2016 follows:

	Accruing 30-89 Days Past Due		Non Accrual		Accruing Greater than 90 Days		Total Past Due		Current Loans		Total
	(in thousands)
Construction and land development	$	—	$	95	$	—	$	95	$	19,427	$	19,522
Commercial and industrial		318		49		—		367		548,923		549,290
Municipal		—		—		—		—		145,063		145,063
Commercial real estate		1,313		156		—		1,469		691,309		692,778
Residential real estate		866		656		—		1,522		221,359		222,881
Consumer and overdrafts		24		2		—		26		11,448		11,474
Home equity		563		—		—		563		199,522		200,085
Total	$	3,084	$	958	$	—	$	4,042	$	1,837,051	$	1,841,093

Further information pertaining to the allowance for loan losses at December 31, 2015 follows:

	Accruing 30-89 Days Past Due		Non Accrual		Accruing Greater than 90 Days		Total Past Due		Current Loans		Total
	(in thousands)
Construction and land development	$	—	$	99	$	—	$	99	$	27,322	$	27,421
Commercial and industrial		—		60		—		60		452,175		452,235
Municipal		—		—		—		—		85,685		85,685
Commercial real estate		1,462		174		—		1,636		719,870		721,506
Residential real estate		596		1,559		—		2,155		253,191		255,346
Consumer and overdrafts		6		—		—		6		11,317		11,323
Home equity		628		444		—		1,072		176,948		178,020
Total	$	2,692	$	2,336	$	—	$	5,028	$	1,726,508	$	1,731,536

Information Pertaining to Impaired Loans

The following is information pertaining to impaired loans for September 30, 2016:

	Carrying Value		Unpaid Principal Balance		Required Reserve		Average Carrying Value for 3 Months Ending 9/30/16		Interest Income Recognized for 3 Months Ending 9/30/16		Average Carrying Value for 9 Months Ending 9/30/16		Interest Income Recognized for 9 Months Ending 9/30/16
	(in thousands)
With no required reserve recorded:
Construction and land development	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and industrial		228		414		—		51		2		54		7
Municipal		—		—		—		—		—		—		—
Commercial real estate		593		593		—		594		9		310		30
Residential real estate		97		186		—		101		2		106		6
Consumer		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		—
Total	$	918	$	1,193	$	—	$	746	$	13	$	470	$	43
With required reserve recorded:
Construction and land development	$	95	$	108	$	4	$	96	$	—	$	97	$	—
Commercial and industrial		171		187		9		353		2		367		7
Municipal		—		—		—		—		—		—		—
Commercial real estate		3,114		3,219		143		3,128		31		2,251		64
Residential real estate		111		110		7		111		1		387		4
Consumer		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		36		—
Total	$	3,491	$	3,624	$	163	$	3,688	$	34	$	3,138	$	75
Total:
Construction and land development	$	95	$	108	$	4	$	96	$	—	$	97	$	—
Commercial and industrial		399		601		9		404		4		421		14
Municipal		—		—		—		—		—		—		—
Commercial real estate		3,707		3,812		143		3,722		40		2,561		94
Residential real estate		208		296		7		212		3		493		10
Consumer		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		36		—
Total	$	4,409	$	4,817	$	163	$	4,434	$	47	$	3,608	$	118

The following is information pertaining to impaired loans for September 30, 2015:

	Carrying Value		Unpaid Principal Balance		Required Reserve		Average Carrying Value for 3 Months Ending 9/30/15		Interest Income Recognized for 3 Months Ending 9/30/15		Average Carrying Value for 9 Months Ending 9/30/15		Interest Income Recognized for 9 Months Ending 9/30/15
	(in thousands)
With no required reserve recorded:
Construction and land development	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Commercial and industrial		12		12		—		27		—		36		—
Municipal		—		—		—		—		—		—		—
Commercial real estate		—		—		—		—		—		196		—
Residential real estate		119		204		—		122		2		128		6
Consumer		—		—		—		—		—		—		—
Home equity		—		—		—		—		—		—		—
Total	$	131	$	216	$	—	$	149	$	2	$	360	$	6
With required reserve recorded:
Construction and land development	$	100	$	108	$	11	$	101	$	—	$	102	$	—
Commercial and industrial		527		728		25		551		5		670		16
Municipal		—		—		—		—		—		—		—
Commercial real estate		1,692		1,789		98		1,700		14		2,809		48
Residential real estate		808		809		36		811		1		817		7
Consumer		—		—		—		—		—		—		—
Home equity		91		91		91		91		—		91		—
Total	$	3,218	$	3,525	$	261	$	3,254	$	20	$	4,489	$	71
Total:
Construction and land development	$	100	$	108	$	11	$	101	$	—	$	102	$	—
Commercial and industrial		539		740		25		578		5		706		16
Municipal		—		—		—		—		—		—		—
Commercial real estate		1,692		1,789		98		1,700		14		3,005		48
Residential real estate		927		1,013		36		933		3		945		13
Consumer		—		—		—		—		—		—		—
Home equity		91		91		91		91		—		91		—
Total	$	3,349	$	3,741	$	261	$	3,403	$	22	$	4,849	$	77

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Reclassifications Out of Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2016

Text Block [Abstract]

Reclassifications Out of Accumulated Other Comprehensive Income

Amount Reclassified from Accumulated Other Comprehensive Income

Details about Accumulated Other Comprehensive Income Components	Three Months Ended September 30, 2016			Three Months Ended September 30, 2015			Affected Line Item in the Statement where Net Income is Presented
	(in thousands)
Unrealized gains and losses on available-for-sale securities	$	19		$	52		Net gains on sales of investments
Tax (expense) or benefit		(7	)		(21	)	Provision for income taxes
Net of tax	$	12		$	31		Net income
Accretion of unrealized losses transferred	$	(809	)	$	(1,436	)	Interest on securities held-to-maturity
Tax (expense) or benefit		282			501		Provision for income taxes
Net of tax	$	(527	)	$	(935	)	Net income
Amortization of defined benefit pension items
Prior-service costs	$	(3	)(b)	$	(2	)(b)	Salaries and employee benefits
Actuarial gains (losses)		(401	)(b)		(352	)(b)	Salaries and employee benefits
Total before tax		(404	)		(354	)	Income before taxes
Tax (expense) or benefit		162			141		Provision for income taxes
Net of tax	$	(242	)	$	(213	)	Net income
Total reclassifications for the period	$	(757	)	$	(1,117	)	Net income
Details about Accumulated Other Comprehensive Income Components	Nine Months Ended September 30, 2016			Nine Months Ended September 30, 2015			Affected Line Item in the Statement where Net Income is Presented
	(in thousands)
Unrealized gains and losses on available-for-sale securities	$	64		$	170		Net gains on sales of investments
Tax (expense) or benefit		(25	)		(68	)	Provision for income taxes
Net of tax	$	39		$	102		Net income
Accretion of unrealized losses transferred	$	(3,490	)	$	(4,141	)	Interest on securities held-to-maturity
Tax (expense) or benefit		1,216			1,444		Provision for income taxes
Net of tax	$	(2,274	)	$	(2,697	)	Net income
Amortization of defined benefit pension items
Prior-service costs	$	(8	)(b)	$	(8	)(b)	Salaries and employee benefits
Actuarial gains (losses)		(1,203	)(b)		(1,056	)(b)	Salaries and employee benefits
Total before tax		(1,211	)		(1,064	)	Income before taxes
Tax (expense) or benefit		484			425		Provision for income taxes
Net of tax	$	(727	)	$	(639	)	Net income
Total reclassifications for the period	$	(2,962	)	$	(3,234	)	Net income, net of tax

(a) Amount in parentheses indicates reductions to net income.

(b) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Employee Benefits footnote (Note 7) for additional details).

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Earnings per Share ("EPS") (Tables)

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Reconciliation of Basic EPS and Diluted EPS

The following table is a reconciliation of basic EPS and diluted EPS.

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands except share and per share data)	2016		2015		2016		2015
Basic EPS Computation:
Numerator:
Net income, Class A	$	5,094	$	4,843	$	14,165	$	13,392
Net income, Class B		1,392		1,323		3,869		3,658
Denominator:
Weighted average shares outstanding, Class A		3,600,729		3,600,729		3,600,729		3,600,729
Weighted average shares outstanding, Class B		1,967,180		1,967,180		1,967,180		1,967,180
Basic EPS, Class A	$	1.41	$	1.35	$	3.93	$	3.72
Basic EPS, Class B		0.71		0.67		1.97		1.86
Diluted EPS Computation:
Numerator:
Net income, Class A	$	5,094	$	4,843	$	14,165	$	13,392
Net income, Class B		1,392		1,323		3,869		3,658
Total net income, for diluted EPS, Class A computation		6,486		6,166		18,034		17,050
Denominator:
Weighted average shares outstanding, basic, Class A		3,600,729		3,600,729		3,600,729		3,600,729
Weighted average shares outstanding, Class B		1,967,180		1,967,180		1,967,180		1,967,180
Weighted average shares outstanding diluted, Class A		5,567,909		5,567,909		5,567,909		5,567,909
Weighted average shares outstanding, Class B		1,967,180		1,967,180		1,967,180		1,967,180
Diluted EPS, Class A	$	1.16	$	1.11	$	3.24	$	3.06
Diluted EPS, Class B		0.71		0.67		1.97		1.86

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Employee Benefits (Tables)

9 Months Ended

Sep. 30, 2016

Compensation and Retirement Disclosure [Abstract]

Components of Net Periodic Benefit Cost (Credit)

Components of Net Periodic Benefit Cost (Credit) for the Three Months Ended September 30,

	Pension Benefits						Supplemental Insurance/     Retirement Plan
	2016			2015			2016		2015
	(in thousands)
Service cost	$	318		$	336		$	455	$	397
Interest		340			394			334		341
Expected return on plan assets		(694	)		(688	)		—		—
Recognized prior service cost (benefit)		(26	)		(26	)		29		29
Recognized net actuarial losses		200			203			200		150
Net periodic benefit (credit) cost	$	138		$	219		$	1,018	$	917

Components of Net Periodic Benefit Cost (Credit) for the Nine Months Ended September 30,

	Pension Benefits						Supplemental Insurance/     Retirement Plan
	2016			2015			2016		2015
	(in thousands)
Service cost	$	954		$	1,008		$	1,366	$	1,191
Interest		1,020			1,182			1,002		1,023
Expected return on plan assets		(2,082	)		(2,064	)		—		—
Recognized prior service cost (benefit)		(78	)		(78	)		87		87
Recognized net actuarial losses		600			610			600		449
Net periodic benefit (credit) cost	$	414		$	658		$	3,055	$	2,750

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Financial Instruments Measured at Fair Value on a Recurring and Non-recurring Basis

The results of the fair value hierarchy as of September 30, 2016, are as follows:

Financial Instruments Measured at Fair Value on a Recurring Basis:

	Securities AFS Fair Value Measurements Using
	Carrying Value		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
	(in thousands)
U.S. Treasury	$	2,000	$	—	$	2,000	$	—
U.S. Government Sponsored Enterprises		15,009		—		15,009		—
SBA Backed Securities		58,345		—		58,345		—
U.S. Government Agency and Sponsored Mortgage Backed Securities		264,454		—		264,454		—
Privately Issued Residential Mortgage Backed Securities		1,177		—		1,177		—
Obligations Issued by States and Political Subdivisions		179,911		—		—		179,911
Other Debt Securities		4,961		—		4,961		—
Equity Securities		275		275		—		—
Total	$	526,132	$	275	$	345,946	$	179,911
Financial Instruments Measured at Fair Value on a Non-recurring Basis:
Impaired Loans	$	251	$	—	$	—	$	251

The results of the fair value hierarchy as of December 31, 2015, are as follows:

Financial Instruments Measured at Fair Value on a Recurring Basis:

	Securities AFS Fair Value Measurements Using
	Carrying Value		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)
	(in thousands)
U.S. Treasury	$	1,989	$	—	$	1,989	$	—
U.S. Government Sponsored Enterprises		—		—		—		—
SBA Backed Securities		5,989		—		5,989		—
U.S. Government Agency and Sponsored Mortgage Backed Securities		233,526		—		233,526		—
Privately Issued Residential Mortgage Backed Securities		1,434		—		1,434		—
Obligations Issued by States and Political Subdivisions		156,960		—		—		156,960
Other Debt Securities		4,473		—		4,473		—
Equity Securities		252		215		—		37
Total	$	404,623	$	215	$	247,411	$	156,997
Financial Instruments Measured at Fair Value on a Non-recurring Basis:
Impaired Loans	$	1,056	$	—	$	—	$	1,056

Assets Measured at Fair Value

The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands). Management continues to monitor the assumptions used to value the assets listed below.

Asset	Fair Value		Valuation Technique	Unobservable Input	Unobservable Input Value or Range
Securities AFS (4)	$	179,911	Discounted cash flow	Discount rate	0%-1% (3)
Impaired Loans	$	251	Appraisal of collateral (1)	Appraisal adjustments (2)	0%-30% discount

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses.

(3) Weighted averages.

(4) Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value. There was one auction rate security whose fair value is based on the evaluation of the underlying issuer, prevailing interest rates and market liquidity.

The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands). Management continues to monitor the assumptions used to value the assets listed below.

Asset	Fair Value		Valuation Technique	Unobservable Input	Unobservable Input     Value or Range
Securities AFS (4)	$	156,997	Discounted cash flow	Discount rate	0%-1% (3)
Impaired Loans	$	1,056	Appraisal of collateral (1)	Appraisal adjustments (2)	0%-30% discount

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses.

(3) Weighted averages

(4) Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value. There was one auction rate security whose fair value is based on the evaluation of the underlying issuer, prevailing interest rates and market liquidity.

Changes in Level 3 Securities

The changes in Level 3 securities for the nine month period ended September 30, 2016 are shown in the table below:

	Auction Rate Securities		Obligations Issued by States & Political Subdivisions			Equity Securities			Total
	(in thousands)
Balance at December 31, 2015	$	3,820	$	153,140		$	37		$	156,997
Purchases		—		181,752			—			181,752
Maturities and calls		—		(159,116	)		(37	)		(159,153	)
Amortization		—		(163	)		—			(163	)
Changes in fair value		478		—			—			478
Balance at September 30, 2016	$	4,298	$	175,613		$	—		$	179,911

The changes in Level 3 securities for the nine month period ended September 30, 2015, are shown in the table below:

	Auction Rate Securities		Obligations Issued by States & Political Subdivisions			Equity Securities			Total
	(in thousands)
Balance at December 31, 2014	$	3,820	$	92,964		$	102		$	96,886
Purchases		—		166,339			—			166,339
Maturities and calls		—		(115,989	)		(65	)		(116,054	)
Amortization		—		(35	)		—			(35	)
Changes in fair value		—		—			—			—
Balance at September 30, 2015	$	3,820	$	143,279		$	37		$	147,136

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Fair Values of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2016

Investments, All Other Investments [Abstract]

Carrying Amounts and Fair Values of Company's Financial Instruments

The following presents (in thousands) the carrying amount, estimated fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2016 and December 31, 2015. This table excludes financial instruments for which the carrying amount approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, short-term investments, FHLBB stock and accrued interest receivable. Financial liabilities for which the fair value approximates carrying value include non-maturity deposits, short-term borrowings and accrued interest payable.

	Carrying Amount		Estimated Fair Value		Fair Value Measurements Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
	(in thousands)
September 30, 2016
Financial assets:
Securities held-to-maturity	$	1,565,191	$	1,589,183	$	—	$	1,589,183	$	—
Loans (1)		1,816,885		1,830,287		—		—		1,830,287
Financial liabilities:
Time deposits		454,631		457,797		—		457,797		—
Other borrowed funds		293,000		302,163		—		302,163		—
Subordinated debentures		36,083		36,083		—		—		36,083
December 31, 2015
Financial assets:
Securities held-to-maturity	$	1,438,903	$	1,438,960	$	—	$	1,438,960	$	—
Loans (1)		1,708,461		1,677,270		—		—		1,677,270
Financial liabilities:
Time deposits		473,426		474,046		—		474,046		—
Other borrowed funds		368,000		372,209		—		372,209		—
Subordinated debentures		36,083		36,083		—		—		36,083

(1) Comprised of loans (including collateral dependent impaired loans), net of deferred loan costs and the allowance for loan losses.

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Basis of Financial Statement Presentation - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2016 Segment
Basis Of Presentation [Line Items]
Number of reportable segments	1
Century Bancorp Capital Trust II [Member]
Basis Of Presentation [Line Items]
Equity ownership interest	100.00%

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Securities Available-for-Sale - Summary of Securities Available-for-Sale (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 526,762	$ 404,977
Gross Unrealized Gains	542	979
Gross Unrealized Losses	1,172	1,333
Total, Fair Value	526,132	404,623
U.S. Treasury [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,000	1,999
Gross Unrealized Losses		10
Total, Fair Value	2,000	1,989
U.S. Government Sponsored Enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	15,000
Gross Unrealized Gains	9
Total, Fair Value	15,009
SBA Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	58,496	5,983
Gross Unrealized Gains	11	8
Gross Unrealized Losses	162	2
Total, Fair Value	58,345	5,989
U.S. Government Agency and Sponsored Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	264,545	232,967
Gross Unrealized Gains	346	859
Gross Unrealized Losses	437	300
Total, Fair Value	264,454	233,526
Privately Issued Residential Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,190	1,437
Gross Unrealized Gains	2	10
Gross Unrealized Losses	15	13
Total, Fair Value	1,177	1,434
Obligations Issued by States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	180,315	157,838
Gross Unrealized Losses	404	878
Total, Fair Value	179,911	156,960
Other Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	5,100	4,600
Gross Unrealized Gains	15	3
Gross Unrealized Losses	154	130
Total, Fair Value	4,961	4,473
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	116	153
Gross Unrealized Gains	159	99
Total, Fair Value	$ 275	$ 252

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Securities Available-for-Sale - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2016 USD ($) Security	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) Security	Sep. 30, 2015 USD ($)	Dec. 31, 2015 USD ($) Security
Schedule of Available-for-sale Securities [Line Items]
Securities at fair value pledged to secure public deposits and repurchase agreements	$ 1,119,685,000		$ 1,119,685,000		$ 1,004,743,000
Securities available-for-sale are securities at fair value pledged for borrowing	63,351,000		63,351,000		$ 20,056,000
Net gains on sales of securities	$ 19,000	$ 52,000	64,000	$ 170,000
Proceeds from sales of securities available-for-sale			$ 2,376,000	42,716,000
Securities AFS [Member]
Schedule of Available-for-sale Securities [Line Items]
Weighted average remaining life of investment securities available-for-sale			3 years 7 months 6 days
Number of securities, temporarily impaired for less than 12 months | Security	41		41		14
Number of securities, temporarily impaired for 12 months or longer | Security	15		15		11
Number of securities, temporarily impaired, total | Security	282		282		290
Federal Home Loan Bank Boston [Member]
Schedule of Available-for-sale Securities [Line Items]
Net gains on sales of securities			$ 52,000	$ 170,000
U.S. Government Agency and Sponsored Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities at fair value pledged to secure public deposits and repurchase agreements	$ 223,246,000		223,246,000		$ 220,482,000
U.S. Government Sponsored Enterprises [Member] | Securities AFS [Member]
Schedule of Available-for-sale Securities [Line Items]
Weighted average remaining life	$ 15,000,000		$ 15,000,000

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Securities Available-for-Sale - Maturity Distribution of Securities Available-for-Sale (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Within one year, Amortized Cost	$ 186,348
After one but within five years, Amortized Cost	203,010
After five but within ten years, Amortized Cost	130,087
More than ten years, Amortized Cost	5,701
Non-maturing, Amortized Cost	1,616
Amortized Cost	526,762	$ 404,977
Within one year, Fair Value	186,336
After one but within five years, Fair Value	202,873
After five but within ten years, Fair Value	129,948
More than ten years, Fair Value	5,313
Non-maturing, Fair Value	1,662
Total, Fair Value	$ 526,132	$ 404,623

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Securities Available-for-Sale - Continuous Unrealized Loss Position for 12 Months or Less and 12 Months or Longer (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Value	$ 182,481	$ 30,036
Less Than 12 Months, Unrealized Losses	499	67
12 Months or Longer, Fair Value	41,024	55,024
12 Months or Longer, Unrealized Losses	673	1,266
Total, Fair Value	223,505	85,060
Total, Unrealized Losses	1,172	1,333
U.S. Treasury [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Value		1,989
Less Than 12 Months, Unrealized Losses		10
Total, Fair Value		1,989
Total, Unrealized Losses		10
SBA Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Value	52,809	1,031
Less Than 12 Months, Unrealized Losses	160	2
12 Months or Longer, Fair Value	971
12 Months or Longer, Unrealized Losses	2
Total, Fair Value	53,780	1,031
Total, Unrealized Losses	162	2
U.S. Government Agency and Sponsored Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Value	128,839	26,519
Less Than 12 Months, Unrealized Losses	298	52
12 Months or Longer, Fair Value	33,439	49,341
12 Months or Longer, Unrealized Losses	139	248
Total, Fair Value	162,278	75,860
Total, Unrealized Losses	437	300
Privately Issued Residential Mortgage Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Value	373
Less Than 12 Months, Unrealized Losses	1
12 Months or Longer, Fair Value	430	490
12 Months or Longer, Unrealized Losses	14	13
Total, Fair Value	803	490
Total, Unrealized Losses	15	13
Obligations Issued by States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
12 Months or Longer, Fair Value	4,298	3,820
12 Months or Longer, Unrealized Losses	404	878
Total, Fair Value	4,298	3,820
Total, Unrealized Losses	404	878
Other Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Less than 12 months, Fair Value	460	497
Less Than 12 Months, Unrealized Losses	40	3
12 Months or Longer, Fair Value	1,886	1,373
12 Months or Longer, Unrealized Losses	114	127
Total, Fair Value	2,346	1,870
Total, Unrealized Losses	$ 154	$ 130

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Investment Securities Held-to-Maturity - Summary of Held-to-Maturity Securities (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 1,565,191	$ 1,438,903
Gross Unrealized Gains	25,401	9,781
Gross Unrealized Losses	1,409	9,724
Estimated Fair Value	1,589,183	1,438,960
U.S. Government Sponsored Enterprises [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	165,176	186,734
Gross Unrealized Gains	2,577	2,234
Gross Unrealized Losses	16	141
Estimated Fair Value	167,737	188,827
SBA Backed Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	20,926
Gross Unrealized Gains	69
Estimated Fair Value	20,995
U.S. Government Agency and Sponsored Mortgage Backed Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	1,379,089	1,252,169
Gross Unrealized Gains	22,755	7,547
Gross Unrealized Losses	1,393	9,583
Estimated Fair Value	$ 1,400,451	$ 1,250,133

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Investment Securities Held-to-Maturity - Additional Information (Detail)	3 Months Ended	9 Months Ended
	Sep. 30, 2016 USD ($) Security	Sep. 30, 2016 USD ($) Security	Sep. 30, 2015 USD ($)	Dec. 31, 2015 USD ($) Security
Schedule of Held-to-maturity Securities [Line Items]
Securities at fair value pledged to secure public deposits and repurchase agreements	$ 1,119,685,000	$ 1,119,685,000		$ 1,004,743,000
Realized gross gains from sales of securities held-to-maturity		12,000
Proceeds from sales of securities held-to-maturity		$ 192,000	$ 0
Held-to-Maturity Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Weighted average remaining life of investment securities held-to-maturity	3 years 9 months 18 days
Number of securities, temporarily impaired for less than 12 months | Security	33	33		101
Number of securities, temporarily impaired for 12 months or longer | Security	15	15		26
Number of securities, temporarily impaired, total | Security	357	357		322
Held-to-Maturity Securities [Member] | U.S. Government Sponsored Enterprises [Member]
Schedule of Held-to-maturity Securities [Line Items]
Weighted average remaining life	$ 76,745,000	$ 76,745,000
Federal Home Loan Bank Boston [Member]
Schedule of Held-to-maturity Securities [Line Items]
Securities pledged for borrowing at the Federal Home Loan Bank	$ 355,602,000	$ 355,602,000		$ 432,965,000

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Investment Securities Held-to-Maturity - Company's Securities Held-to-Maturity (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Within one year, Amortized Cost	$ 15,191
After one but within five years, Amortized Cost	1,360,309
After five but within ten years, Amortized Cost	186,544
More than ten years, Amortized Cost	3,147
Amortized Cost	1,565,191	$ 1,438,903
Within one year, Fair Value	15,314
After one but within five years, Fair Value	1,379,055
After five but within ten years, Fair Value	191,613
More than ten years, Fair Value	3,201
Estimated Fair Value	$ 1,589,183	$ 1,438,960

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Investment Securities Held-to-Maturity - Unrealized Market Loss of Securities (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Schedule of Held-to-maturity Securities [Line Items]
Less Than 12 Months, Fair Value	$ 204,764	$ 636,077
Less Than 12 Months, Unrealized Losses	661	6,798
12 Months or Longer, Fair Value	57,854	123,864
12 Months or Longer, Unrealized Losses	748	2,926
Total, Fair Value	262,618	759,941
Total, Unrealized Losses	1,409	9,724
U.S. Government Sponsored Enterprises [Member]
Schedule of Held-to-maturity Securities [Line Items]
Less Than 12 Months, Fair Value	41,984	9,859
Less Than 12 Months, Unrealized Losses	16	141
Total, Fair Value	41,984	9,859
Total, Unrealized Losses	16	141
U.S. Government Agency and Sponsored Mortgage Backed Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Less Than 12 Months, Fair Value	162,780	626,218
Less Than 12 Months, Unrealized Losses	645	6,657
12 Months or Longer, Fair Value	57,854	123,864
12 Months or Longer, Unrealized Losses	748	2,926
Total, Fair Value	220,634	750,082
Total, Unrealized Losses	$ 1,393	$ 9,583

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Allowance for Loan Losses - Summary of Changes in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Receivables [Abstract]
Allowance for loan losses, beginning of period	$ 23,863	$ 22,245	$ 23,075	$ 22,318
Loans charged off	(118)	(129)	(298)	(613)
Recoveries on loans previously charged-off	93	214	345	425
Net recoveries (charge-offs)	(25)	85	47	(188)
Provision charged to expense	375		1,175	200
Reclassification to other liabilities	(5)		(89)
Allowance for loan losses, end of period	$ 24,208	$ 22,330	$ 24,208	$ 22,330

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Allowance for Loan Losses - Summary of Allowance for Loan Losses (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Allowance for loan losses:
Allowance for loan losses, beginning of period	$ 23,863	$ 22,245	$ 23,075	$ 22,318
Charge-offs	(118)	(129)	(298)	(613)
Recoveries	93	214	345	425
Provision	375		1,175	200
Reclassification to other liabilities	(5)		(89)
Allowance for loan losses, end of period	24,208	22,330	24,208	22,330
Amount of allowance for loan losses for loans deemed to be impaired	163	261	163	261
Amount of allowance for loan losses for loans not deemed to be impaired	24,045	22,069	24,045	22,069
Loans:
Total loans, net	1,841,093	1,640,830	1,841,093	1,640,830	$ 1,731,536
Loans deemed to be impaired	4,409	3,349	4,409	3,349
Loans not deemed to be impaired	1,836,684	1,637,481	1,836,684	1,637,481
Construction and Land Development [Member]
Allowance for loan losses:
Allowance for loan losses, beginning of period	2,234	1,733	2,041	1,592
Provision	(3)	126	193	267
Reclassification to other liabilities			(3)
Allowance for loan losses, end of period	2,231	1,859	2,231	1,859
Amount of allowance for loan losses for loans deemed to be impaired	4	11	4	11
Amount of allowance for loan losses for loans not deemed to be impaired	2,227	1,848	2,227	1,848
Loans:
Total loans, net	19,522	27,308	19,522	27,308	27,421
Loans deemed to be impaired	95	100	95	100
Loans not deemed to be impaired	19,427	27,208	19,427	27,208
Commercial and Industrial [Member]
Allowance for loan losses:
Allowance for loan losses, beginning of period	5,842	4,428	5,899	4,757
Charge-offs		(43)		(95)
Recoveries	24	75	115	147
Provision	307	995	188	646
Reclassification to other liabilities			(29)
Allowance for loan losses, end of period	6,173	5,455	6,173	5,455
Amount of allowance for loan losses for loans deemed to be impaired	9	25	9	25
Amount of allowance for loan losses for loans not deemed to be impaired	6,164	5,430	6,164	5,430
Loans:
Total loans, net	549,290	378,154	549,290	378,154	452,235
Loans deemed to be impaired	399	539	399	539
Loans not deemed to be impaired	548,891	377,615	548,891	377,615
Municipal [Member]
Allowance for loan losses:
Allowance for loan losses, beginning of period	1,801	1,000	994	1,488
Provision	(29)	117	778	(371)
Allowance for loan losses, end of period	1,772	1,117	1,772	1,117
Amount of allowance for loan losses for loans not deemed to be impaired	1,772	1,117	1,772	1,117
Loans:
Total loans, net	145,063	87,016	145,063	87,016	85,685
Loans not deemed to be impaired	145,063	87,016	145,063	87,016
Commercial Real Estate [Member]
Allowance for loan losses:
Allowance for loan losses, beginning of period	10,650	11,723	10,589	11,199
Charge-offs				(298)
Recoveries		80		84
Provision	(752)	(1,086)	(680)	(268)
Reclassification to other liabilities			(11)
Allowance for loan losses, end of period	9,898	10,717	9,898	10,717
Amount of allowance for loan losses for loans deemed to be impaired	143	98	143	98
Amount of allowance for loan losses for loans not deemed to be impaired	9,755	10,619	9,755	10,619
Loans:
Total loans, net	692,778	701,523	692,778	701,523	721,506
Loans deemed to be impaired	3,707	1,692	3,707	1,692
Loans not deemed to be impaired	689,071	699,831	689,071	699,831
Residential Real Estate [Member]
Allowance for loan losses:
Allowance for loan losses, beginning of period	1,302	722	1,320	776
Recoveries	2	1	5	5
Provision	624	115	605	57
Reclassification to other liabilities			(2)
Allowance for loan losses, end of period	1,928	838	1,928	838
Amount of allowance for loan losses for loans deemed to be impaired	7	36	7	36
Amount of allowance for loan losses for loans not deemed to be impaired	1,921	802	1,921	802
Loans:
Total loans, net	222,881	264,105	222,881	264,105	255,346
Loans deemed to be impaired	208	927	208	927
Loans not deemed to be impaired	222,673	263,178	222,673	263,178
Consumer [Member]
Allowance for loan losses:
Allowance for loan losses, beginning of period	608	709	644	810
Charge-offs	(91)	(86)	(271)	(220)
Recoveries	67	58	225	189
Provision	5	(2)	(6)	(100)
Reclassification to other liabilities			(3)
Allowance for loan losses, end of period	589	679	589	679
Amount of allowance for loan losses for loans not deemed to be impaired	589	679	589	679
Loans:
Total loans, net	11,474	10,633	11,474	10,633	11,323
Loans not deemed to be impaired	11,474	10,633	11,474	10,633
Home Equity [Member]
Allowance for loan losses:
Allowance for loan losses, beginning of period	1,158	650	1,077	599
Charge-offs	(27)		(27)
Provision	155	51	272	102
Reclassification to other liabilities	(5)		(41)
Allowance for loan losses, end of period	1,281	701	1,281	701
Amount of allowance for loan losses for loans deemed to be impaired		91		91
Amount of allowance for loan losses for loans not deemed to be impaired	1,281	610	1,281	610
Loans:
Total loans, net	200,085	172,091	200,085	172,091	$ 178,020
Loans deemed to be impaired		91		91
Loans not deemed to be impaired	200,085	172,000	200,085	172,000
Unallocated [Member]
Allowance for loan losses:
Allowance for loan losses, beginning of period	268	1,280	511	1,097
Provision	68	(316)	(175)	(133)
Allowance for loan losses, end of period	336	964	336	964
Amount of allowance for loan losses for loans not deemed to be impaired	$ 336	$ 964	$ 336	$ 964

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Allowance for Loan Losses - Loans by Risk Rating (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Loans by risk rating
Financing Receivable, Net	$ 1,841,093	$ 1,731,536	$ 1,640,830
1-3 (Pass) [Member]
Loans by risk rating
Financing Receivable, Net	1,395,294	1,276,651
4 (Monitor) [Member]
Loans by risk rating
Financing Receivable, Net	7,158	7,977
Impaired [Member]
Loans by risk rating
Financing Receivable, Net	4,201	2,219
Construction and Land Development [Member]
Loans by risk rating
Financing Receivable, Net	19,522	27,421	27,308
Construction and Land Development [Member] | 1-3 (Pass) [Member]
Loans by risk rating
Financing Receivable, Net	12,453	20,281
Construction and Land Development [Member] | 4 (Monitor) [Member]
Loans by risk rating
Financing Receivable, Net	6,974	7,042
Construction and Land Development [Member] | Impaired [Member]
Loans by risk rating
Financing Receivable, Net	95	98
Commercial and Industrial [Member]
Loans by risk rating
Financing Receivable, Net	549,290	452,235	378,154
Commercial and Industrial [Member] | 1-3 (Pass) [Member]
Loans by risk rating
Financing Receivable, Net	548,891	451,774
Commercial and Industrial [Member] | 4 (Monitor) [Member]
Loans by risk rating
Financing Receivable, Net		18
Commercial and Industrial [Member] | Impaired [Member]
Loans by risk rating
Financing Receivable, Net	399	443
Municipal [Member]
Loans by risk rating
Financing Receivable, Net	145,063	85,685	87,016
Municipal [Member] | 1-3 (Pass) [Member]
Loans by risk rating
Financing Receivable, Net	145,063	85,685
Commercial Real Estate [Member]
Loans by risk rating
Financing Receivable, Net	692,778	721,506	$ 701,523
Commercial Real Estate [Member] | 1-3 (Pass) [Member]
Loans by risk rating
Financing Receivable, Net	688,887	718,911
Commercial Real Estate [Member] | 4 (Monitor) [Member]
Loans by risk rating
Financing Receivable, Net	184	917
Commercial Real Estate [Member] | Impaired [Member]
Loans by risk rating
Financing Receivable, Net	$ 3,707	$ 1,678

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Allowance for Loan Losses - Loans by Credit Ratings Issued by National Organizations (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable net of deferred income credit quality	$ 879,024	$ 765,695
Aaa - Aa3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable net of deferred income credit quality	405,503	306,145
A1 - A3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable net of deferred income credit quality	302,742	278,691
Baa1 - Baa3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable net of deferred income credit quality	167,169	176,379
Ba2 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable net of deferred income credit quality	3,610	4,480
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable net of deferred income credit quality	470,619	375,152
Commercial and Industrial [Member] | Aaa - Aa3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable net of deferred income credit quality	331,240	234,733
Commercial and Industrial [Member] | A1 - A3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable net of deferred income credit quality	139,379	140,419
Municipal [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable net of deferred income credit quality	141,635	84,635
Municipal [Member] | Aaa - Aa3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable net of deferred income credit quality	67,427	63,865
Municipal [Member] | A1 - A3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable net of deferred income credit quality	33,510	7,400
Municipal [Member] | Baa1 - Baa3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable net of deferred income credit quality	37,088	8,890
Municipal [Member] | Ba2 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable net of deferred income credit quality	3,610	4,480
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable net of deferred income credit quality	266,770	305,908
Commercial Real Estate [Member] | Aaa - Aa3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable net of deferred income credit quality	6,836	7,547
Commercial Real Estate [Member] | A1 - A3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable net of deferred income credit quality	129,853	130,872
Commercial Real Estate [Member] | Baa1 - Baa3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable net of deferred income credit quality	$ 130,081	$ 167,489

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Allowance for Loan Losses - Aging of Past Due Loans (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Financing Receivable, Allowance for Credit Losses [Line Items]
Accruing 30-89 Days Past Due	$ 3,084	$ 2,692
Non Accrual	958	2,336
Total Past Due	4,042	5,028
Current Loans	1,837,051	1,726,508
Total loans, net	1,841,093	1,731,536	$ 1,640,830
Construction and Land Development [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Non Accrual	95	99
Total Past Due	95	99
Current Loans	19,427	27,322
Total loans, net	19,522	27,421	27,308
Commercial and Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Accruing 30-89 Days Past Due	318
Non Accrual	49	60
Total Past Due	367	60
Current Loans	548,923	452,175
Total loans, net	549,290	452,235	378,154
Municipal [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Current Loans	145,063	85,685
Total loans, net	145,063	85,685	87,016
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Accruing 30-89 Days Past Due	1,313	1,462
Non Accrual	156	174
Total Past Due	1,469	1,636
Current Loans	691,309	719,870
Total loans, net	692,778	721,506	701,523
Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Accruing 30-89 Days Past Due	866	596
Non Accrual	656	1,559
Total Past Due	1,522	2,155
Current Loans	221,359	253,191
Total loans, net	222,881	255,346	264,105
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Accruing 30-89 Days Past Due	24	6
Non Accrual	2
Total Past Due	26	6
Current Loans	11,448	11,317
Total loans, net	11,474	11,323	10,633
Home Equity [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Accruing 30-89 Days Past Due	563	628
Non Accrual		444
Total Past Due	563	1,072
Current Loans	199,522	176,948
Total loans, net	$ 200,085	$ 178,020	$ 172,091

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Allowance for Loan Losses - Information Pertaining to Impaired Loans (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Financing Receivable, Allowance for Credit Losses [Line Items]
With no required reserve recorded, Carrying Value	$ 918	$ 131	$ 918	$ 131
With no required reserve recorded, Unpaid Principal Balance	1,193	216	1,193	216
With no required reserve recorded, Required Reserve	0	0	0	0
With no required reserve recorded, Average Carrying Value Recognized	746	149	470	360
With no required reserve recorded, Interest Income	13	2	43	6
With required reserve recorded, Carrying Value	3,491	3,218	3,491	3,218
With required reserve recorded, Unpaid Principal Balance	3,624	3,525	3,624	3,525
With required reserve recorded, Required Reserve	163	261	163	261
With required reserve recorded, Average Carrying Value Recognized	3,688	3,254	3,138	4,489
With required reserve recorded, Interest Income	34	20	75	71
Carrying Value	4,409	3,349	4,409	3,349
Unpaid Principal Balance	4,817	3,741	4,817	3,741
With required reserve recorded, Required Reserve	163	261	163	261
Average Carrying Value Recognized	4,434	3,403	3,608	4,849
Interest Income	47	22	118	77
Construction and Land Development [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
With no required reserve recorded, Required Reserve	0	0	0	0
With required reserve recorded, Carrying Value	95	100	95	100
With required reserve recorded, Unpaid Principal Balance	108	108	108	108
With required reserve recorded, Required Reserve	4	11	4	11
With required reserve recorded, Average Carrying Value Recognized	96	101	97	102
Carrying Value	95	100	95	100
Unpaid Principal Balance	108	108	108	108
With required reserve recorded, Required Reserve	4	11	4	11
Average Carrying Value Recognized	96	101	97	102
Commercial and Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
With no required reserve recorded, Carrying Value	228	12	228	12
With no required reserve recorded, Unpaid Principal Balance	414	12	414	12
With no required reserve recorded, Required Reserve	0	0	0	0
With no required reserve recorded, Average Carrying Value Recognized	51	27	54	36
With no required reserve recorded, Interest Income	2		7
With required reserve recorded, Carrying Value	171	527	171	527
With required reserve recorded, Unpaid Principal Balance	187	728	187	728
With required reserve recorded, Required Reserve	9	25	9	25
With required reserve recorded, Average Carrying Value Recognized	353	551	367	670
With required reserve recorded, Interest Income	2	5	7	16
Carrying Value	399	539	399	539
Unpaid Principal Balance	601	740	601	740
With required reserve recorded, Required Reserve	9	25	9	25
Average Carrying Value Recognized	404	578	421	706
Interest Income	4	5	14	16
Municipal [Member] | Municipal [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
With no required reserve recorded, Required Reserve	0	0	0	0
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
With no required reserve recorded, Carrying Value	593		593
With no required reserve recorded, Unpaid Principal Balance	593		593
With no required reserve recorded, Required Reserve	0	0	0	0
With no required reserve recorded, Average Carrying Value Recognized	594		310	196
With no required reserve recorded, Interest Income	9		30
With required reserve recorded, Carrying Value	3,114	1,692	3,114	1,692
With required reserve recorded, Unpaid Principal Balance	3,219	1,789	3,219	1,789
With required reserve recorded, Required Reserve	143	98	143	98
With required reserve recorded, Average Carrying Value Recognized	3,128	1,700	2,251	2,809
With required reserve recorded, Interest Income	31	14	64	48
Carrying Value	3,707	1,692	3,707	1,692
Unpaid Principal Balance	3,812	1,789	3,812	1,789
With required reserve recorded, Required Reserve	143	98	143	98
Average Carrying Value Recognized	3,722	1,700	2,561	3,005
Interest Income	40	14	94	48
Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
With no required reserve recorded, Carrying Value	97	119	97	119
With no required reserve recorded, Unpaid Principal Balance	186	204	186	204
With no required reserve recorded, Required Reserve	0	0	0	0
With no required reserve recorded, Average Carrying Value Recognized	101	122	106	128
With no required reserve recorded, Interest Income	2	2	6	6
With required reserve recorded, Carrying Value	111	808	111	808
With required reserve recorded, Unpaid Principal Balance	110	809	110	809
With required reserve recorded, Required Reserve	7	36	7	36
With required reserve recorded, Average Carrying Value Recognized	111	811	387	817
With required reserve recorded, Interest Income	1	1	4	7
Carrying Value	208	927	208	927
Unpaid Principal Balance	296	1,013	296	1,013
With required reserve recorded, Required Reserve	7	36	7	36
Average Carrying Value Recognized	212	933	493	945
Interest Income	3	3	10	13
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
With no required reserve recorded, Required Reserve	0	0	0	0
Home Equity [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
With no required reserve recorded, Required Reserve	$ 0	0	0	0
With required reserve recorded, Carrying Value		91		91
With required reserve recorded, Unpaid Principal Balance		91		91
With required reserve recorded, Required Reserve		91		91
With required reserve recorded, Average Carrying Value Recognized		91	36	91
Carrying Value		91		91
Unpaid Principal Balance		91		91
With required reserve recorded, Required Reserve		91		91
Average Carrying Value Recognized		$ 91	$ 36	$ 91

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Allowance for Loan Losses - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) Contracts	Sep. 30, 2015 USD ($)
Financing Receivable, Allowance for Credit Losses [Line Items]
Troubled debt restructurings, subsequently defaulted	$ 0	$ 0	$ 0	$ 0
Commercial Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Number of troubled debt restructurings | Contracts			1
Pre-modification outstanding recorded investment			$ 2,091,000
Post-modification outstanding recorded investment			2,091,000
Financing allowance reduction in principal payments	7,000		10,000
Financing allowance reduction in interest payments	$ 2,000		$ 2,000

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Reclassifications Out of Accumulated Other Comprehensive Income - Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net gains on sales of securities	$ 19	$ 52	$ 64	$ 170
Provision for income taxes	52	(180)	(32)	(628)
Net income	6,486	6,166	18,034	17,050
Salaries and employee benefits	(10,544)	(10,087)	(30,360)	(28,701)
Reclassification Out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income	(757)	(1,117)	(2,962)	(3,234)
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains and Losses on Available-for-Sale Securities [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net gains on sales of securities	19	52	64	170
Provision for income taxes	(7)	(21)	(25)	(68)
Net income	12	31	39	102
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Accretion of Unrealized Losses Transferred [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net gains on sales of securities	(809)	(1,436)	(3,490)	(4,141)
Provision for income taxes	282	501	1,216	1,444
Net income	(527)	(935)	(2,274)	(2,697)
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Prior-Service Costs [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Salaries and employee benefits	(3)	(2)	(8)	(8)
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Actuarial Gains (Losses) [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Salaries and employee benefits	(401)	(352)	(1,203)	(1,056)
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Amortization of Defined Benefit Pension Items [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income before taxes	(404)	(354)	(1,211)	(1,064)
Provision for income taxes	162	141	484	425
Net income	$ (242)	$ (213)	$ (727)	$ (639)

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Earnings per Share ("EPS") - Additional Information (Detail) - Class A Common Stock [Member] - shares	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Number of Stock options outstanding	0	0
Minimum [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Class A common stock entitled dividend per share percent in comparison to Class B common stock	200.00%

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Earnings Per Share ("EPS") - Reconciliation of Basic EPS and Diluted EPS (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income	$ 6,486	$ 6,166	$ 18,034	$ 17,050
Class A Common Stock [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income	$ 5,094	$ 4,843	$ 14,165	$ 13,392
Weighted average shares outstanding, basic	3,600,729	3,600,729	3,600,729	3,600,729
Basic earnings per share	$ 1.41	$ 1.35	$ 3.93	$ 3.72
Weighted average shares outstanding, diluted	5,567,909	5,567,909	5,567,909	5,567,909
Diluted earnings per share	$ 1.16	$ 1.11	$ 3.24	$ 3.06
Class B Common Stock [Member]
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income	$ 1,392	$ 1,323	$ 3,869	$ 3,658
Weighted average shares outstanding, basic	1,967,180	1,967,180	1,967,180	1,967,180
Basic earnings per share	$ 0.71	$ 0.67	$ 1.97	$ 1.86
Weighted average shares outstanding, diluted	1,967,180	1,967,180	1,967,180	1,967,180
Diluted earnings per share	$ 0.71	$ 0.67	$ 1.97	$ 1.86

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Employee Benefits - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2016 USD ($)
Compensation and Retirement Disclosure [Abstract]
Number of years service to participate in supplemental plan	1 year
Current fiscal year contribution to pension plan	$ 1,825,000
Employer expected contribution to Pension Plan in 2016	$ 2,075,000

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Employee Benefits - Components of Net Periodic Benefit Cost (Credit) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Defined Benefit Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 318	$ 336	$ 954	$ 1,008
Interest	340	394	1,020	1,182
Expected return on plan assets	(694)	(688)	(2,082)	(2,064)
Recognized prior service cost (benefit)	(26)	(26)	(78)	(78)
Recognized net actuarial losses	200	203	600	610
Net periodic benefit (credit) cost	138	219	414	658
Supplemental Insurance/ Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	455	397	1,366	1,191
Interest	334	341	1,002	1,023
Recognized prior service cost (benefit)	29	29	87	87
Recognized net actuarial losses	200	150	600	449
Net periodic benefit (credit) cost	$ 1,018	$ 917	$ 3,055	$ 2,750

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Fair Value Measurements - Financial Instruments Measured at Fair Value on a Recurring and Non-recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	$ 526,132	$ 404,623
Fair Value Measurements, Level 1 Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	275	215
Fair Value Measurements, Level 2 Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	345,946	247,411
Fair Value Measurements, Level 3 Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	179,911	156,997
Financial Instruments Measured at Fair Value on a Non-recurring Basis
Impaired Loans	251	1,056
U.S. Treasury [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	2,000	1,989
U.S. Treasury [Member] | Fair Value Measurements, Level 2 Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	2,000	1,989
SBA Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	58,345	5,989
SBA Backed Securities [Member] | Fair Value Measurements, Level 2 Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	58,345	5,989
U.S. Government Agency and Sponsored Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	264,454	233,526
U.S. Government Agency and Sponsored Mortgage Backed Securities [Member] | Fair Value Measurements, Level 2 Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	264,454	233,526
Privately Issued Residential Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	1,177	1,434
Privately Issued Residential Mortgage Backed Securities [Member] | Fair Value Measurements, Level 2 Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	1,177	1,434
Obligations Issued by States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	179,911	156,960
Obligations Issued by States and Political Subdivisions [Member] | Fair Value Measurements, Level 3 Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	179,911	156,960
Other Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	4,961	4,473
Other Debt Securities [Member] | Fair Value Measurements, Level 2 Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	4,961	4,473
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	275	252
Equity Securities [Member] | Fair Value Measurements, Level 1 Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	275	215
Equity Securities [Member] | Fair Value Measurements, Level 3 Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS		37
U.S. Government Sponsored Enterprises [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	15,009
U.S. Government Sponsored Enterprises [Member] | Fair Value Measurements, Level 2 Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	15,009
Carrying Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	526,132	404,623
Financial Instruments Measured at Fair Value on a Non-recurring Basis
Impaired Loans	251	1,056
Carrying Value [Member] | U.S. Treasury [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	2,000	1,989
Carrying Value [Member] | SBA Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	58,345	5,989
Carrying Value [Member] | U.S. Government Agency and Sponsored Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	264,454	233,526
Carrying Value [Member] | Privately Issued Residential Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	1,177	1,434
Carrying Value [Member] | Obligations Issued by States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	179,911	156,960
Carrying Value [Member] | Other Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	4,961	4,473
Carrying Value [Member] | Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	275	$ 252
Carrying Value [Member] | U.S. Government Sponsored Enterprises [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities AFS	$ 15,009

XML

Fair Value Measurements - Additional Information (Detail) - USD ($)	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Specific adjustments to impaired loans recognized	$ (7,000)	$ (143,000)	$ (165,000)
Transfers between level 1, 2 and 3		0
Liabilities measured at fair value on a recurring or nonrecurring basis	0	0
Transfers between level 1, 2 and 3			0
Liabilities measured at fair value on a recurring or nonrecurring basis			$ 0
Fair Value Measurements, Level 3 Inputs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Amortized cost of Level 3 securities	180,315,000	180,315,000		$ 148,012,000
Unrealized loss	$ 404,000	$ 404,000		$ 876,000

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Fair Value Measurements - Assets Measured at Fair Value (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Securities AFS [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Fair Value	$ 179,911	$ 156,997
Valuation Technique	Discounted cash flow
Unobservable Input	Discount rate
Impaired Loans [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Fair Value	$ 251	$ 1,056
Valuation Technique	Appraisal of collateral
Unobservable Input	Appraisal adjustments
Minimum [Member] | Securities AFS [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Unobservable Input Value or Range	0.00%	0.00%
Minimum [Member] | Impaired Loans [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Unobservable Input Value or Range	0.00%	0.00%
Maximum [Member] | Securities AFS [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Unobservable Input Value or Range	1.00%	1.00%
Maximum [Member] | Impaired Loans [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Unobservable Input Value or Range	30.00%	30.00%

XML

Fair Value Measurements - Assets Measured at Fair Value (Parenthetical) (Detail)	9 Months Ended
	Sep. 30, 2016
Municipal [Member]
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items]
Securities maturity period	one year or less

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Fair Value Measurements - Changes in Level 3 Securities (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	$ 156,997	$ 96,886
Purchases	181,752	166,339
Maturities and calls	(159,153)	(116,054)
Amortization	(163)	(35)
Changes in fair value	478
Ending Balance	179,911	147,136
Auction Rate Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	3,820	3,820
Changes in fair value	478
Ending Balance	4,298	3,820
Obligations Issued by States and Political Subdivisions [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	153,140	92,964
Purchases	181,752	166,339
Maturities and calls	(159,116)	(115,989)
Amortization	(163)	(35)
Ending Balance	175,613	143,279
Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	37	102
Maturities and calls	$ (37)	(65)
Ending Balance		$ 37

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Fair Values of Financial Instruments - Carrying Amount and Fair Value of Company's Financial Instruments (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Financial assets:
Securities held-to-maturity	$ 1,565,191	$ 1,438,903
Loans	1,816,885	1,708,461
Financial liabilities:
Time deposits	454,631	473,426
Other borrowed funds	293,000	368,000
Subordinated debentures	36,083	36,083
Carrying Value [Member]
Financial assets:
Securities held-to-maturity	1,565,191	1,438,903
Loans	1,816,885	1,708,461
Financial liabilities:
Time deposits	454,631	473,426
Other borrowed funds	293,000	368,000
Subordinated debentures	36,083	36,083
Estimated Fair Value [Member]
Financial assets:
Securities held-to-maturity	1,589,183	1,438,960
Loans	1,830,287	1,677,270
Financial liabilities:
Time deposits	457,797	474,046
Other borrowed funds	302,163	372,209
Subordinated debentures	36,083	36,083
Fair Value Measurements, Level 2 Inputs [Member]
Financial assets:
Securities held-to-maturity	1,589,183	1,438,960
Financial liabilities:
Time deposits	457,797	474,046
Other borrowed funds	302,163	372,209
Fair Value Measurements, Level 3 Inputs [Member]
Financial assets:
Loans	1,830,287	1,677,270
Financial liabilities:
Subordinated debentures	$ 36,083	$ 36,083