Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 01, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ENTERPRISE BANCORP INC /MA/ | ||
Entity Central Index Key | 0001018399 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 11,722,413 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 379,229,680 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash and cash equivalents: | |||
Cash and due from banks | $ 43,865 | $ 40,310 | |
Interest-earning deposits | 19,255 | 14,496 | |
Total cash and cash equivalents | 63,120 | 54,806 | |
Investment securities at fair value | 432,921 | 405,206 | |
Federal Home Loan Bank (FHLB) stock | 5,357 | 5,215 | |
Loans held for sale | 701 | 208 | |
Loans, less allowance for loan losses of $33,849 at December 31, 2018 and $32,915 at December 31, 2017 | 2,353,657 | 2,236,989 | |
Premises and equipment, net | 37,588 | 37,022 | |
Accrued interest receivable | 11,462 | 10,614 | |
Deferred income taxes, net | 11,747 | 10,751 | |
Bank-owned life insurance | 30,138 | 29,466 | |
Prepaid income taxes | 732 | 1,301 | |
Prepaid expenses and other assets | 11,279 | 20,330 | |
Goodwill | 5,656 | 5,656 | |
Total assets | 2,964,358 | 2,817,564 | |
Deposits: | |||
Customer deposits | 2,507,999 | 2,293,872 | |
Brokered deposits | [1] | 56,783 | 147,490 |
Total deposits | 2,564,782 | 2,441,362 | |
Borrowed funds | 100,492 | 89,000 | |
Subordinated debt | 14,860 | 14,847 | |
Accrued expenses and other liabilities | 27,948 | 40,067 | |
Accrued interest payable | 979 | 478 | |
Total liabilities | 2,709,061 | 2,585,754 | |
Commitments and Contingencies | |||
Stockholders' Equity | |||
Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued | 0 | 0 | |
Common stock $0.01 par value per share; 40,000,000 shares authorized; 11,708,218 shares issued and outstanding at December 31, 2018 and 11,609,853 shares issued and outstanding at December 31, 2017 | 117 | 116 | |
Additional paid-in capital | 91,281 | 88,205 | |
Retained earnings | 165,183 | 143,073 | |
Accumulated other comprehensive (loss) income | (1,284) | 416 | |
Total stockholders' equity | 255,297 | 231,810 | |
Total liabilities and stockholders' equity | $ 2,964,358 | $ 2,817,564 | |
[1] | Brokered CDs which are $250,000 and under. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||||
Allowance for loan losses | $ 33,849 | $ 32,915 | $ 31,342 | $ 29,008 |
Common stock, par value | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 40,000,000 | 40,000,000 | ||
Common stock, shares issued | 11,708,218 | 11,609,853 | ||
Common Stock, Shares, Outstanding | 11,708,218 | 11,609,853 | ||
Preferred stock, par value | $ 0.01 | $ 0.01 | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | ||
Preferred stock, shares issued | 0 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest and dividend income: | |||
Loans and loans held for sale | $ 111,090 | $ 96,559 | $ 85,390 |
Investment securities | 10,728 | 8,045 | 6,640 |
Other interest-earning assets | 1,085 | 428 | 285 |
Total interest and dividend income | 122,903 | 105,032 | 92,315 |
Interest expense: | |||
Deposits | 12,760 | 5,995 | 4,514 |
Borrowed funds | 383 | 590 | 81 |
Subordinated debt | 925 | 925 | 928 |
Total interest expense | 14,068 | 7,510 | 5,523 |
Net interest income | 108,835 | 97,522 | 86,792 |
Provision for loan losses | 2,250 | 1,430 | 2,993 |
Net interest income after provision for loan losses | 106,585 | 96,092 | 83,799 |
Non-interest income: | |||
Wealth management fees | 5,624 | 5,149 | 4,774 |
Deposit and interchange fees | 6,234 | 6,011 | 5,124 |
Income on bank-owned life insurance, net | 672 | 701 | 747 |
Net (losses) gains on sales of investment securities | (2,950) | 716 | 802 |
Net gains on sales of loans | 260 | 460 | 601 |
Other income | 2,150 | 2,637 | 2,393 |
Total non-interest income | 11,990 | 15,674 | 14,441 |
Non-interest expense: | |||
Salaries and employee benefits | 51,257 | 48,379 | 43,886 |
Occupancy and equipment expenses | 8,526 | 7,960 | 7,362 |
Technology and telecommunications expenses | 6,382 | 6,372 | 6,080 |
Advertising and public relations expenses | 3,367 | 2,855 | 2,833 |
Audit, legal and other professional fees | 1,725 | 1,565 | 1,721 |
Deposit insurance premiums | 1,697 | 1,535 | 1,387 |
Supplies and postage expenses | 989 | 999 | 965 |
Other operating expenses | 6,935 | 6,480 | 6,094 |
Total non-interest expense | 80,878 | 76,145 | 70,328 |
Income before income taxes | 37,697 | 35,621 | 27,912 |
Provision for income taxes | 8,816 | 16,228 | 9,161 |
Net income | $ 28,881 | $ 19,393 | $ 18,751 |
Basic earnings per share | $ 2.47 | $ 1.68 | $ 1.71 |
Diluted earnings per share | $ 2.46 | $ 1.66 | $ 1.70 |
Basic weighted average common shares outstanding | 11,679,520 | 11,568,430 | 10,966,333 |
Diluted weighted average common shares outstanding | 11,750,462 | 11,651,763 | 11,039,511 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 28,881 | $ 19,393 | $ 18,751 |
Other comprehensive (loss) income, net of taxes: | |||
Gross unrealized holding (losses) gains on investments arising during the period | (5,143) | 2,424 | (3,876) |
Income tax benefit (expense) | 1,162 | (855) | 1,357 |
Net unrealized holding (losses) gains, net of tax | (3,981) | 1,569 | (2,519) |
Less: Reclassification adjustment for net (losses) gains included in net income | |||
Net realized (losses) gains on sales of securities during the period | (2,950) | 716 | 802 |
Income tax benefit (expense) | 669 | (247) | (289) |
Reclassification adjustment for (losses) gains realized, net of tax | (2,281) | 469 | 513 |
Total other comprehensive (loss) income, net | (1,700) | 1,100 | (3,032) |
Comprehensive income | $ 27,181 | $ 20,493 | $ 15,719 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) |
Balance, beginning at Dec. 31, 2015 | $ 180,327 | $ 104 | $ 61,008 | $ 116,941 | $ 2,274 |
Balance, beginning, shares, outstanding at Dec. 31, 2015 | 10,377,787 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 18,751 | 18,751 | |||
Other comprehensive income (loss), net | (3,032) | (3,032) | |||
Tax benefit from stock compensation | 789 | 789 | |||
Common stock dividend paid | 5,684 | (5,684) | |||
Common stock issued under dividend reinvestment plan, shares | 53,516 | ||||
Common stock issued under dividend reinvestment plan | 1,381 | $ 1 | 1,380 | ||
Common stock issued, shares, other, net of expenses | 932,522 | ||||
Common stock issued, other, net of expenses | 19,802 | $ 9 | 19,793 | ||
Stock-based compensation, shares | 71,662 | ||||
Stock-based compensation | 2,348 | $ 1 | 2,347 | ||
Net settlement for employee taxes on restricted stock and options, shares | (12,744) | ||||
Net settlement for employee taxes on restricted stock and options | (442) | $ 0 | (442) | ||
Stock options exercised, net, shares | 52,999 | ||||
Stock options exercised, net | 546 | $ 0 | 546 | ||
Balance, ending at Dec. 31, 2016 | 214,786 | $ 115 | 85,421 | 130,008 | (758) |
Balance, ending, shares, outstanding at Dec. 31, 2016 | 11,475,742 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 19,393 | 19,393 | |||
Cumulative effect adjustment for adoption of new accounting pronouncements | 0 | 13 | (87) | 74 | |
Other comprehensive income (loss), net | 1,100 | 1,100 | |||
Common stock dividend paid | 6,241 | (6,241) | |||
Common stock issued under dividend reinvestment plan, shares | 44,752 | ||||
Common stock issued under dividend reinvestment plan | 1,494 | $ 0 | 1,494 | ||
Common stock issued, shares, other, net of expenses | 2,798 | ||||
Common stock issued, other, net of expenses | 96 | $ 0 | 96 | ||
Stock-based compensation, shares | 58,037 | ||||
Stock-based compensation | 1,758 | $ 1 | 1,757 | ||
Net settlement for employee taxes on restricted stock and options, shares | (15,185) | ||||
Net settlement for employee taxes on restricted stock and options | (931) | $ 0 | (931) | ||
Stock options exercised, net, shares | 43,709 | ||||
Stock options exercised, net | 355 | $ 0 | 355 | ||
Balance, ending at Dec. 31, 2017 | $ 231,810 | $ 116 | 88,205 | 143,073 | 416 |
Balance, ending, shares, outstanding at Dec. 31, 2017 | 11,609,853 | 11,609,853 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | $ 28,881 | 28,881 | |||
Other comprehensive income (loss), net | (1,700) | (1,700) | |||
Common stock dividend paid | 6,771 | (6,771) | |||
Common stock issued under dividend reinvestment plan, shares | 37,999 | ||||
Common stock issued under dividend reinvestment plan | 1,328 | $ 0 | 1,328 | ||
Common stock issued, shares, other, net of expenses | 3,440 | ||||
Common stock issued, other, net of expenses | 121 | $ 0 | 121 | ||
Stock-based compensation, shares | 51,107 | ||||
Stock-based compensation | 1,879 | $ 1 | 1,878 | ||
Net settlement for employee taxes on restricted stock and options, shares | (15,106) | ||||
Net settlement for employee taxes on restricted stock and options | (559) | $ 0 | (559) | ||
Stock options exercised, net, shares | 20,925 | ||||
Stock options exercised, net | 308 | $ 0 | 308 | ||
Balance, ending at Dec. 31, 2018 | $ 255,297 | $ 117 | $ 91,281 | $ 165,183 | $ (1,284) |
Balance, ending, shares, outstanding at Dec. 31, 2018 | 11,708,218 | 11,708,218 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock dividend paid, per share | $ 0.58 | $ 0.54 | $ 0.52 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 28,881 | $ 19,393 | $ 18,751 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 2,250 | 1,430 | 2,993 |
Depreciation and amortization | 6,836 | 7,028 | 6,081 |
Stock-based compensation expense | 1,848 | 1,753 | 2,380 |
Income on bank-owned life insurance, net | (672) | (701) | (747) |
Net losses (gains) on sales of investment securities | 2,950 | (716) | (802) |
Mortgage loans originated for sale | (13,026) | (19,820) | (28,873) |
Proceeds from mortgage loans sold | 12,793 | 21,641 | 29,614 |
Net gains on sales of loans | (260) | (460) | (601) |
Net unrealized loss on equity securities | 204 | 0 | 0 |
Changes in: | |||
(Increase) decrease in other assets | (1,815) | 6,026 | (2,174) |
Increase in other liabilities | 1,812 | 2,357 | 701 |
Net cash provided by operating activities | 41,801 | 37,931 | 27,323 |
Cash flows from investing activities: | |||
Proceeds from sales of investment securities | 129,883 | 133,736 | 4,800 |
Net (purchases of) proceeds from sales of FHLB capital stock | (142) | (3,121) | 956 |
Proceeds from maturities, calls and pay-downs of investment securities | 42,278 | 32,643 | 30,930 |
Purchase of investment securities | (210,630) | (187,158) | (118,255) |
Net increase in loans | (118,918) | (247,032) | (163,426) |
Additions to premises and equipment, net | (5,297) | (8,211) | (7,918) |
Proceeds from bank-owned life insurance | 0 | 0 | 405 |
Net cash used in investing activities | (162,826) | (279,143) | (252,508) |
Cash flows from financing activities: | |||
Net increase in deposits | 123,420 | 172,441 | 250,773 |
Net increase (decrease) in borrowed funds | 11,492 | 78,329 | (43,000) |
Cash dividends paid | (6,771) | (6,241) | (5,684) |
Proceeds from issuance of common stock, net of expenses | 1,449 | 1,590 | 21,183 |
Net settlement for employee taxes on restricted stock and options | (559) | (931) | (442) |
Proceeds from stock option exercises | 308 | 355 | 546 |
Tax benefit from stock-based compensation | 0 | 0 | 789 |
Net cash provided by financing activities | 129,339 | 245,543 | 224,165 |
Net increase (decrease) in cash and cash equivalents | 8,314 | 4,331 | (1,020) |
Cash and cash equivalents, beginning of year | 54,806 | 50,475 | 51,495 |
Cash and cash equivalents, end of year | 63,120 | 54,806 | 50,475 |
Supplemental financial data: | |||
Cash Paid For: Interest | 13,567 | 7,295 | 5,536 |
Cash Paid For: Income taxes | 8,694 | 10,459 | 10,868 |
Supplemental schedule of non-cash activity: | |||
Net purchases of (sales proceeds from) investment securities not yet settled | $ 5,794 | $ 9,154 | $ (301) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Organization of Holding Company and Basis of Presentation The accompanying consolidated financial statements of Enterprise Bancorp, Inc. (the "Company," "Enterprise," "we," or "our"), a Massachusetts corporation, include the accounts of the Company and its wholly owned subsidiary, Enterprise Bank and Trust Company, commonly referred to as Enterprise Bank (the "Bank"). The Bank is a Massachusetts trust company and state chartered commercial bank organized in 1989. Substantially all of the Company's operations are conducted through the Bank and its subsidiaries. The Bank's subsidiaries include Enterprise Insurance Services, LLC and Enterprise Wealth Services, LLC, organized under the laws of the State of Delaware for the purposes of engaging in insurance sales activities and offering non-deposit investment products and services, respectively. In addition, the Bank has the following subsidiaries that are incorporated in the Commonwealth of Massachusetts and classified as security corporations in accordance with applicable Massachusetts General Laws: Enterprise Security Corporation; Enterprise Security Corporation II; and Enterprise Security Corporation III. The security corporations, which hold various types of qualifying securities, are limited to conducting securities investment activities that the Bank itself would be allowed to conduct under applicable laws. The Company's headquarters and the Bank's main office are located at 222 Merrimack Street in Lowell, Massachusetts. At December 31, 2018 , the Company had 24 full service branch banking offices serving the Greater Merrimack Valley, Nashoba Valley and North Central regions of Massachusetts and Southern New Hampshire (Southern Hillsborough and Rockingham counties). Through the Bank and its subsidiaries, the Company offers a range of commercial, residential and consumer loan products, deposit products and cash management services, electronic and digital banking options, and insurance services. The Company also provides a range of wealth management, wealth services and trust services delivered via two channels, Enterprise Wealth Management and Enterprise Wealth Services. The services offered through the Bank and its subsidiaries are managed as one strategic unit and represent the Company's only reportable operating segment. The Federal Deposit Insurance Corporation (the "FDIC") and the Massachusetts Division of Banks (the "Division") have regulatory authority over the Bank. The Bank is also subject to certain regulatory requirements of the Board of Governors of the Federal Reserve System (the "Federal Reserve Board") and, with respect to its New Hampshire branch operations, the New Hampshire Banking Department. The business and operations of the Company are subject to the regulatory oversight of the Federal Reserve Board. The Division also retains supervisory jurisdiction over the Company. The accompanying audited consolidated financial statements and notes thereto have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and the instructions for SEC Form 10-K through the rules and interpretive releases of the SEC under federal securities law. In the opinion of management, the accompanying audited consolidated financial statements reflect all necessary adjustments consisting of normal recurring accruals for a fair presentation. All significant intercompany balances and transactions have been eliminated in the accompanying audited consolidated financial statements. Certain previous years' amounts in the audited consolidated financial statements, and notes thereto, have been reclassified to conform to the current year's presentation. The Company has evaluated subsequent events and transactions from December 31, 2018 through the date this Annual Report on Form 10-K was filed with the SEC for potential recognition or disclosure as required by GAAP and determined that there were no material subsequent events requiring recognition or disclosure. (b) Uses of Estimates In preparing the consolidated financial statements in conformity with GAAP, management is required to exercise judgment in determining many of the methodologies, assumptions and estimates to be utilized. These assumptions and estimates affect the reported values of assets and liabilities as of the balance sheet dates and income and expenses for the years then ended. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates should the assumptions and estimates used be incorrect or change over time due to changes in circumstances. Changes in those estimates resulting from continuing changes in the economic environment and other factors will be reflected in the consolidated financial statements and results of operations in future periods. The three most significant areas in which management applies critical assumptions and estimates are the estimates of the allowance for loan losses, impairment review of investment securities and the impairment review of goodwill. (c) Cash and cash equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less, that are readily convertible to known amounts of cash and present insignificant risk of changes in value due to changes in interest rates. The Company's cash and cash equivalents may be comprised of cash on hand and cash items due from banks, interest-earning deposits (deposit accounts, excess reserve cash balances, money markets, and money market mutual fund accounts) and federal funds ("fed funds") sold. Balances in cash and cash equivalents will fluctuate due primarily to the timing of net deposit flows, borrowing and loan inflows and outflows, investment purchases, maturities, calls and sales, and the immediate liquidity needs of the Company. (d) Restricted Cash and Investments Certain of the Company's derivative agreements contain provisions for collateral to be posted if the derivative exposure exceeds a threshold amount. When the Company has pledged cash as collateral for this purpose, the cash is carried as restricted cash within cash and cash equivalents. See Note 8, "Derivatives and Hedging Activities," for more information about the Company's collateral related to its derivatives. The Bank is also required by the Federal Reserve Bank of Boston ("FRB") to maintain in reserves certain amounts of vault cash and/or deposits with the FRB. The average daily cash balance on hand for reserve requirements included in "Cash and Due from Banks" was approximately $9.0 million and $7.6 million , based on the two-week computation periods encompassing December 31, 2018 and 2017 , respectively. As a member of the FHLB, the Company is required to purchase certain levels of FHLB capital stock at par value in association with outstanding advances from the FHLB. From time-to-time, the FHLB may initiate the repurchase, at par value, of "excess" levels of its capital stock held by member banks. This stock is classified as a restricted investment and carried at cost, which management believes approximates fair value. FHLB stock represents the only restricted investment held by the Company. Management regularly reviews its holdings of FHLB stock for other-than-temporary impairment ("OTTI"). Based on management's periodic review, the Company has not recorded any OTTI charges on this investment to date. If it was determined that a write-down of FHLB stock was required, impairment would be recognized through a charge to earnings. See also Note 2, "Investment Securities," to the Company's consolidated financial statements, contained below, for additional information on management's OTTI review. (e) Investments Investments in debt securities that are intended to be held for indefinite periods of time, but which may not be held to maturity or on a long-term basis are considered to be "available-for-sale" and are carried at fair value. Net unrealized appreciation and depreciation on investments available-for-sale, net of applicable income taxes, are reflected as a component of accumulated other comprehensive income (loss). Included as available-for-sale are debt securities that are purchased in connection with the Company's asset-liability risk management strategy and that may be sold in response to changes in interest rates, resultant prepayment risk and other related factors. In instances where the Company has the positive intent to hold debt securities to maturity, these securities will be classified as held-to-maturity and carried at amortized cost. As of the balance sheet dates, all of the Company's debt securities were classified as available-for-sale and carried at fair value. There are inherent risks associated with the Company's investment activities that could adversely impact the fair value and the ultimate collectability of the Company's investments. Management regularly reviews the debt portfolio for securities with unrealized losses to determine if any of the unrealized losses are OTTI. The determination of OTTI involves a high degree of judgment. While management uses available information to measure OTTI at the balance sheet date, future write-downs may be necessary based on extended duration of current unrealized losses, changing market conditions, or circumstances surrounding individual issuers. If a debt investment is deemed to have an unrealized loss that is OTTI, the Company is required to write-down the investment. For debt securities, OTTI is generally recognized through a charge to earnings as of the balance sheet date, while non-OTTI unrealized losses are recognized in other comprehensive income. Unrealized losses on debt securities are deemed OTTI if 1) the Company intends to sell the security, 2) it is more likely than not that the Company will be required to sell the security before recovery, or 3) a credit loss exists and the Company does not expect to recover the entire amortized cost. For debt securities that have a credit loss, any portion of the loss related to other factors is recorded in other comprehensive income. Once written-down, the previous charge on debt securities may not be recovered through earnings until sale or maturity, if in excess of its new cost basis. Any OTTI charges, depending upon the magnitude of the charges, could have a material adverse effect on the Company's financial condition and results of operations. See also Note 2, "Investment Securities," to the Company's consolidated financial statements below, for further information on management's OTTI assessment. At December 31, 2018 , the Company's equity securities were carried at carried at fair value, with changes in fair value recognized in net income. See "Accounting pronouncements adopted by the Company" contained in Item (u), "Recent Accounting Pronouncements," below in this Note 1 for treatment of unrealized losses on equities. Investment securities' discounts are accreted and premiums are amortized over the period of estimated principal repayment using methods that approximate the interest method. Gains or losses on the sale of investment securities are recognized on the trade date on a specific identification basis. (f) Loans Held for Sale Depending on the current interest-rate environment, management projections of future interest rates and the overall asset-liability management program of the Company, management may elect to sell those fixed and adjustable rate residential mortgage loans which are eligible for sale in the secondary market or hold some or all of this residential loan production for the Company's portfolio. Mortgage loans are generally not pooled for sale, but instead sold on an individual basis. Enterprise may retain or sell the servicing when selling the loans. Loans sold are subject to standard secondary market underwriting and eligibility representations and warranties over the life of the loan and are subject to an early payment default period covering the first four payments for certain loan sales. Loans held for sale are carried at the lower of aggregate amortized cost or fair value. Fair value is based on comparable market prices for loans with similar rates and terms. When loans are sold, a gain or loss is recognized to the extent that the sales proceeds plus unamortized fees and costs exceed, or are less than, the carrying value of the loans. Gains and losses are determined using the specific identification method. (g) Loans Loans made by the Company to businesses, non-profits and professional practices include commercial real estate mortgage loans, construction and land development loans, secured and unsecured commercial loans and lines of credit, and letters of credit. The Company also originates equipment lease financing for businesses. Loans made to individuals include conventional residential mortgage loans, home equity loans and lines, residential construction loans on owner-occupied primary and secondary residences, and secured and unsecured personal loans and lines of credit. Most loans granted by the Company are collateralized by real estate or equipment and/or are guaranteed by the principals of the borrower. The ability and willingness of the single family residential and consumer borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity and real estate values within the borrowers’ geographic areas. The ability and willingness of commercial real estate, commercial and construction loan borrowers to honor their repayment commitments is generally dependent on the health of the real estate sector in the borrowers' geographic areas and the general economy, among other factors. Loans are reported at the principal amount outstanding, net of deferred origination fees and costs. The aggregate amounts of overdrawn deposit accounts are reclassified as loan balances. Loan origination fees received, offset by direct loan origination costs, are deferred and amortized using the straight line method over three to five years for lines of credit and demand notes or over the life of the related loans using the level-yield method for all other types of loans. When loans are paid off, the unamortized fees and costs are recognized as an adjustment to interest income. From time to time, the Company participates with other banks in the financing of certain commercial projects. In each case in which the Company participates in a loan, the rights and obligations of each participating bank are divided proportionately among the participating banks in an amount equal to their share of ownership and with equal priority among all banks. Each participation is governed by individual participation agreements executed by the lead bank and the participant at loan inception.When the participation qualifies as a sale under GAAP, the balances participated out to other institutions are not carried as assets on the Company's consolidated financial statements. The Company performs an independent credit analysis of each commitment and a review of the participating institution prior to participation in the loan, and an annual review thereafter of each participating institution. Loans originated by other banks in which the Company is the participating institution are carried in the loan portfolio at the Company's pro rata share of ownership. See also Note 3, "Loans," to the Company's consolidated financial statements, under "Loan Portfolio Classifications," for further information about the Company's participation loans. (h) Allowance for Loan Losses The allowance for loan losses is an estimate of probable credit risk inherent in the loan portfolio as of the specified balance sheet dates. The allowance for loan losses is established through a provision for loan losses, a direct charge to earnings. Loan losses are charged against the allowance when management believes that the collectability of the loan principal is unlikely. Recoveries on loans previously charged-off are credited to the allowance. The Company maintains the allowance at a level that it deems adequate to absorb all reasonably anticipated probable losses from specifically known and other credit risks associated with the portfolio. The Company uses a systematic methodology to measure the amount of estimated loan loss exposure inherent in the portfolio for purposes of establishing a sufficient allowance for loan losses. The methodology uses a two-tiered approach that makes use of specific reserves for loans individually evaluated and deemed impaired and general reserves for larger groups of homogeneous loans, which are collectively evaluated relying on a combination of qualitative and quantitative factors that may affect credit quality of the pool. On a quarterly basis, the Company prepares an estimate of the allowance necessary to cover estimated credit risk inherent in the portfolio as of the specified balance sheet dates. The adequacy of the allowance for loan losses is reviewed and evaluated on a regular basis by an internal management committee and the full Board. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company's allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on judgments different from those of management. See also Note 4, "Allowance for Loan Losses," to the Company's consolidated financial statements, contained below, for additional accounting policies related to non-accrual, impaired and troubled debt restructured loans and to the allowance for loan losses. (i) Other Real Estate Owned Real estate acquired by the Company through foreclosure proceedings or the acceptance of a deed in lieu of foreclosure is classified as other real estate owned ("OREO"). When property is acquired, it is recorded at estimated fair value of the property acquired, less estimated costs to sell, establishing a new cost basis. The estimated fair value is based on market appraisals and the Company’s internal analysis. Any loan balance in excess of the estimated realizable fair value on the date of transfer is charged to the allowance for loan losses on that date. All costs incurred thereafter in maintaining the property, as well as subsequent declines in fair value are charged to non-interest expense. (j) Premises and Equipment Land is carried at cost. All other premises and equipment costs are stated at cost less accumulated depreciation and amortization. Depreciation or amortization is computed on a straight-line basis over the lesser of the estimated useful lives of the asset or the respective lease term (with reasonably assured renewal options) for leasehold improvements generally as follows: Bank premises, land improvements, and leasehold improvements 10 to 39 years Computer software and equipment 3 to 5 years Furniture, fixtures and equipment 3 to 10 years (k) Bank Owned Life Insurance The Company has purchased bank-owned life insurance ("BOLI") on certain current and former senior and executive officers. The cash surrender value carried on the consolidated balance sheets at December 31, 2018 and December 31, 2017 , amounted to $30.1 million and $29.5 million , respectively. There are no associated surrender charges under the outstanding policies. (l) Impairment of Long-Lived Assets Other than Goodwill The Company reviews long-lived assets, including premises and equipment, for impairment on an ongoing basis or whenever events or changes in business circumstances indicate that the remaining useful life may warrant revision or that the carrying amount of the long-lived asset may not be fully recoverable. If impairment is determined to exist, any related impairment loss is recognized through a charge to earnings. Impairment losses on assets disposed of, if any, are based on the estimated proceeds to be received, less cost of disposal. (m) Goodwill Goodwill carried on the Company's consolidated financial statements was $5.7 million at both December 31, 2018 and December 31, 2017 . This asset is related to the Company's acquisition of two branch offices in July 2000. In accordance with GAAP, the Company does not amortize goodwill and instead, at least annually, evaluates whether the carrying value of goodwill has become impaired. Impairment of the goodwill may occur when the estimated fair value of the Company is less than its recorded book value. A determination that goodwill has become impaired results in an immediate write-down of goodwill to its determined value with a resulting charge to operations. The annual impairment test begins with a qualitative assessment of whether it is "more likely than not" that the reporting unit's fair value is less than its carrying amount. The assessment is performed at the reporting unit level. If an entity concludes it is not "more likely than not" that the fair value of a reporting unit is less than its carrying amount, it need not perform a two-step impairment test. In the case of the Company, the services offered through the Bank and subsidiaries are managed as one strategic unit and represent the Company’s only reportable operating segment. Management's qualitative assessment takes into consideration macroeconomic conditions, industry and market considerations, cost or margin factors, financial performance and share price. Based on this assessment, the Company determined that it is not "more likely than not" that the Company's fair value is less than its carrying amount and therefore goodwill was determined not to be impaired at December 31, 2018 . If the Company's qualitative assessment concluded that it is "more likely than not" that the fair value of a reporting unit is less than its carrying amount, it must perform the two-step impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized, if any. The first step of the goodwill impairment test compares the estimated fair value of the reporting unit with its carrying amount, or the book value of the reporting unit, including goodwill. If the estimated fair value of the reporting unit equals or exceeds its book value, goodwill is considered not impaired, and the second step of the impairment test is unnecessary. The second step, if necessary, measures the amount of goodwill impairment loss to be recognized. The reporting unit must determine fair values for all assets and liabilities, excluding goodwill. The net of the assigned fair value of assets and liabilities is then compared to the book value of the reporting unit, and any excess book value becomes the implied fair value of goodwill. If the carrying amount of the goodwill exceeds the newly calculated implied fair value of that goodwill, an impairment loss is recognized in the amount required to write down the goodwill to the implied fair value. (n) Investment Assets Under Management Investment assets under management, consisting of assets managed through Enterprise Wealth Management and Enterprise Wealth Services and commercial sweep products, totaled $800.8 million and $845.0 million at December 31, 2018 and 2017 , respectively. Securities and other property held in a fiduciary or agency capacity are not included in the consolidated balance sheets because they are not assets of the Company. See Item (p), "Revenue Recognition-ASC Topic 606," below in this Note 1, for information on the Company's accounting policies for wealth management fees. (o) Derivatives The Company recognizes all derivatives as either assets or liabilities on its consolidated balance sheet and measures those instruments at fair value. Interest-rate lock commitments related to the origination of mortgage loans that will be sold are considered derivative instruments. The commitments to sell loans are also considered derivative instruments. The Company generally does not pool mortgage loans for sale, but instead, sells the loans on an individual basis. To reduce the net interest rate exposure arising from its loan sale activity, the Company enters into the commitment to sell these loans at essentially the same time that the interest-rate lock commitment is quoted on the origination of the loan. The Company estimates the fair value of these derivatives based on current secondary mortgage market prices. At December 31, 2018 and 2017 , the estimated fair value of the Company's interest-rate lock commitments and commitments to sell these mortgage loans were deemed immaterial. The Company may use interest-rate-contract swaps as part of its interest-rate risk management strategy. Interest-rate- swap agreements are entered into as hedges against future interest-rate fluctuations on specifically identified assets or liabilities. The Company did not have derivative fair value hedges or derivative cash flow hedges at December 31, 2018 or 2017 . The Company has a "Back-to-Back Swap" program whereby the Bank enters into an interest-rate swap with a qualified commercial banking customer and simultaneously enters into an equal and opposite interest-rate swap with a swap counterparty. The customer interest-rate-swap agreement allows commercial banking customers to convert a floating-rate loan payment to a fixed-rate payment. The transaction structure effectively minimizes the Bank's net risk exposure resulting from such transactions. Customer-related credit risk is minimized by the cross collateralization of the loan and the interest-rate-swap agreement. Back-to-Back Swaps are not speculative but rather, result from a service the Company provides to certain customers. Back-to-Back Swaps do not meet hedge accounting requirements and therefore changes in the fair value of both the customer swaps and the counterparty swaps, which have an offsetting relationship, are recognized directly in earnings. See also Note 8, "Derivatives and Hedging Activities," to the Company's consolidated financial statements below, for more information about the Company's derivatives. (p) Revenue Recognition-ASC Topic 606 On January 1, 2018, the Company adopted Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers-Topic 606" ("ASC 606"). The core principles require an entity to recognize revenue to depict the transfer of goods and services to customers as performance obligations are satisfied. While the majority of the Company’s revenue is generated from contracts with customers, our primary sources of revenue, interest and dividend income (primarily loan interest income), are outside of the scope of ASC 606 and accounted for under other ASC topics. Management did not identify any material changes needed in either our process of recording revenue or any material income statement reclassifications necessary, upon the adoption of the new revenue recognition standard (ASC 606). The primary areas of income, which are also the first two lines of non-interest income on the Company's Consolidated Statements of Income, are within the scope of ASC 606 and are discussed below. Wealth management fees consist of income generated through Enterprise Wealth Management and Enterprise Wealth Services. Enterprise Wealth Management income is primarily generated by managing customers' financial assets. Revenue is recognized as our performance obligation is completed each month. Enterprise Wealth Services revenue is generated through a third-party arrangement to refer, manage and service customers. For new sales and referrals along with transactional type charges, the performance obligation is based on a point in time and the payment is received and revenue is recognized in the same month as the revenue generating activity. For managing and servicing customers, revenue is recognized when our performance obligation is completed each month. Deposit and interchange fees are comprised of deposit account related charges and income generated from electronic payment interchanges. Deposit account charges consist of certain transactional analysis fees net of earning balance credits, monthly account service fees, and transactional fees such as overdraft fees. Analysis and monthly services fees are recognized over the period the service is performed. For transactional fees, the performance obligation and the revenue is recognized at a point of time and payment is typically received as the service is rendered. Interchange income is generated primarily from retail debit card transactions processed through the card payment network. The performance obligation and the revenue are recognized when the service is performed. The following non-interest income components are not subject to ASC 606: income on bank-owned life insurance ("BOLI"), net gains on sales of investment securities, and net gains on sales of loans, and are covered under other ASC topics. The remaining revenue items in non-interest income are not material. See Item (e), "Investments," Item (f), "Loans Held for Sale," and Item (g), "Loans," above in this Item 1 for additional accounting policies on revenue recognition related to income generated on investments, gains and losses on debt security sales, net gains on loans held for sale, and loans. (q) Stock-Based Compensation The Company's consolidated financial statements include stock-based compensation expense for the portion of stock option awards and stock awards for which the requisite service has been rendered during the period. The compensation expense has been recorded based on the estimated grant-date fair value of the stock option awards, or in the case of stock awards, the market value of the common stock on the date of grant. Prior to the adoption of ASU 2016-09 "Compensation - Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting," in January 2017, forfeitures were estimated and netted against the expense. Upon adoption of this ASU, expense adjustments are made for actual forfeitures as they occur. See Note 12, "Stock-Based Compensation," for further information on the Company's stock-based compensation, including recording excess tax benefits and deficiencies. The Company will recognize the remaining estimated compensation expense for the portion of outstanding awards and compensation expense for any future awards, net of actual forfeitures, as the requisite service is rendered (i.e., on a straight-line basis over the remaining vesting period of each award) or as performance objectives are met. Stock awards that do not require future service ("vested awards") will be expensed immediately. Stock-based compensation also includes Director stock compensation for stock awards and stock in lieu of cash fees, both included in other operating expenses, described in more detail in Note 12, "Stock-Based Compensation." (r) Income Taxes The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and in the states of Massachusetts and New Hampshire within the directives of the respective enacted tax legislation. The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax expense or benefit attributable to differences between the financial statement carrying amounts and the tax basis of assets and liabilities. The deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities will be adjusted accordingly through the provision for income taxes in the period that includes the enactment date. The Company's policy is to classify interest resulting from underpayment of income taxes as income tax expense in the first period the interest would begin accruing according to the provisions of the relevant tax law. The Company classifies penalties resulting from underpayment of income taxes as income tax expense in the period for which the Company claims or expects to claim an uncertain tax position or in the period in which the Company’s judgment changes regarding an uncertain tax position. The income tax provisions will differ from the expense that would result from applying the federal statutory rate to income before taxes, due primarily to the impact of state tax expense, tax-exempt interest from certain investment securities, loans and BOLI and tax benefits from equity compensation deductions. The C |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities As of December 31, 2018 , the investment portfolio was primarily comprised of debt securities, with a small portion of the portfolio invested in equity securities. The Company had only debt securities at December 31, 2017 , as the equity portfolio was liquidated during 2017 to reduce the potential impact on earnings from market fluctuations resulting from new accounting rules in effect January 1, 2018. See also Item (e), "Investments," and Item (d), "Restricted Cash and Investments," contained in Note 1, "Summary of Significant Accounting Policies," to the Company's consolidated financial statements, contained above, for further information regarding the accounting for the Company's investments portfolio and FHLB Stock. See Note 15, "Fair Value Measurements," to the Company's consolidated financial statements, contained below, for further information regarding the Company's fair value measurements for investment securities. Debt Securities The amortized cost and fair values of debt securities at December 31, 2018 and 2017 are summarized as follows: 2018 (Dollars in thousands) Amortized cost Unrealized gains Unrealized losses Fair Value Federal agency obligations (1) $ 7,994 $ — $ 19 $ 7,975 Residential federal agency MBS (1) 174,701 633 2,608 172,726 Commercial federal agency MBS (1) 93,800 609 430 93,979 Municipal securities 141,747 1,122 826 142,043 Corporate bonds 13,967 24 185 13,806 CDs (2) 950 — 6 944 Total debt securities, at fair value $ 433,159 $ 2,388 $ 4,074 $ 431,473 2017 (Dollars in thousands) Amortized cost Unrealized gains Unrealized losses Fair Value Federal agency obligations (1) $ 51,769 $ 30 $ 82 $ 51,717 Residential federal agency MBS (1) 141,054 71 971 140,154 Commercial federal agency MBS (1) 66,777 9 286 66,500 Municipal securities 132,603 2,097 354 134,346 Corporate bonds 11,546 63 67 11,542 CDs (2) 950 — 3 947 Total debt securities, at fair value $ 404,699 $ 2,270 $ 1,763 $ 405,206 (1) These categories may include investments issued or guaranteed by government sponsored enterprises such as Fannie Mae ("FNMA"), Freddie Mac ("FHLMC"), Federal Farm Credit Bank ("FFCB"), or one of several Federal Home Loan Banks, as well as, investments guaranteed by Ginnie Mae ("GNMA"), a wholly-owned government entity. (2) CDs represent term deposits issued by banks that are subject to FDIC insurance and purchased on the open market. Included in the residential and commercial federal agency MBS categories were collateralized mortgage obligations ("CMOs") issued by U.S. agencies with fair values totaling $242.8 million and $171.7 million at December 31, 2018 and 2017 , respectively. As of the dates reflected in the tables above, all of the Company's debt securities were classified as available-for-sale and carried at fair value. Net unrealized appreciation and depreciation on debt securities available-for-sale, net of applicable income taxes, are reflected as a component of accumulated other comprehensive income (loss). The net unrealized gain or loss in the Company's debt security portfolio fluctuates as market interest rates rise and fall. Due to the predominantly fixed rate nature of this portfolio, as market rates fall the value of the portfolio rises, and as market rates rise, the value of the portfolio declines. The unrealized gains or losses on debt securities will also decline as the securities approach maturity. Unrealized losses on debt securities that are deemed OTTI are generally charged to earnings, as described further in Note 1, "Summary of Significant Accounting Policies," under Item (e), "Investments." Gains or losses will be recognized in the income statement if the securities are sold. The following tables summarize debt securities having temporary impairment, due to the fair values having declined below the amortized costs of the individual investments, and the period that the investments have been temporarily impaired at December 31, 2018 and 2017 : 2018 Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses # of holdings Federal agency obligations $ 997 $ 1 $ 6,978 $ 18 $ 7,975 $ 19 3 Residential federal agency MBS 26,147 597 81,158 2,011 107,305 2,608 25 Commercial federal agency MBS 3,258 11 18,717 419 21,975 430 9 Municipal securities 15,036 108 41,265 718 56,301 826 83 Corporate bonds 5,277 36 5,653 149 10,930 185 63 CDs — — 944 6 944 6 4 Total temporarily impaired debt securities $ 50,715 $ 753 $ 154,715 $ 3,321 $ 205,430 $ 4,074 187 2017 Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses # of holdings Federal agency obligations $ 34,344 $ 82 $ — $ — $ 34,344 $ 82 9 Residential federal agency MBS 109,308 882 2,015 89 111,323 971 30 Commercial federal agency MBS 35,859 205 5,190 81 41,049 286 11 Municipal securities 16,983 129 10,210 225 27,193 354 50 Corporate bonds 2,802 23 2,913 44 5,715 67 33 CDs 947 3 — — 947 3 4 Total temporarily impaired debt securities $ 200,243 $ 1,324 $ 20,328 $ 439 $ 220,571 $ 1,763 137 During the years ended December 31, 2018 and 2017 , the Company did not record any fair value impairment charges (Other than temporary impairment or "OTTI") on its investments in debt securities. At December 31, 2018 , management did not consider any debt securities to have OTTI and attributes the unrealized losses at year end to the impact of increases in market yields at December 31, 2018 compared to the yields at the time the investments were purchased by the Company, partially offset by a restructuring of the debt security portfolio in the fourth quarter of 2018, which resulted in sales of approximately 27% of the debt security portfolio and reinvestment at then current market rates. Management regularly reviews the portfolio for debt securities with unrealized losses that are other-than-temporarily impaired. The process for assessing investments for OTTI may vary depending on the type of debt security. In assessing the Company's investments in federal agency mortgage-backed securities and federal agency obligations, the contractual cash flows of these investments are guaranteed by the respective government sponsored enterprise (FHLMC, FNMA, FFCB, or FHLB) or wholly-owned government corporation (GNMA). Accordingly, it is expected that the securities would not be settled at a price less than the par value of the Company's investments. Management's assessment of other debt securities within the portfolio includes reviews of market pricing, ongoing credit quality evaluations, assessment of the investments' materiality, and duration of the investments' unrealized loss position. In addition, the Company utilizes an outside registered investment adviser to manage the corporate and municipal bond portfolios, within prescribed guidelines set by management, and to provide assistance in assessing the credit risk of those portfolios. At December 31, 2018 , the Company's corporate and municipal bond portfolios did not contain any securities below investment grade, as reported by major credit rating agencies. As noted in the table above, a small portion of the portfolio was invested in CDs and was also in an unrealized loss position at December 31, 2018 , due to market rates. The unrealized loss was not considered to be material and the securities are expected to mature at par value. The contractual maturity distribution at December 31, 2018 of total debt securities was as follows: (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 13,678 $ 13,662 Due after one, but within five years 54,873 55,012 Due after five, but within ten years 160,316 160,735 Due after ten years 204,292 202,064 Total debt securities $ 433,159 $ 431,473 Scheduled contractual maturities shown above may not reflect the actual maturities of the investments. The actual MBS/CMO cash flows likely will be faster than presented above due to prepayments and amortization. Similarly, included in the table above are callable securities, comprised of municipal securities and corporate bonds, with a fair value of $79.1 million , which can be redeemed by the issuers prior to the maturity presented above. Management considers these factors when evaluating the interest-rate risk in the Company's asset-liability management program. From time to time the Company may pledge debt securities as collateral for deposit account balances of municipal customers, and for borrowing capacity with the FHLB and the FRB. The fair value of debt securities pledged as collateral for these purposes was $424.7 million and $383.1 million at December 31, 2018 and 2017 , respectively. Sales of debt securities, including pending trades based on trade date, if applicable, for the years ended December 31, 2018 , 2017 , and 2016 are summarized as follows: (Dollars in thousands) 2018 2017 2016 Amortized cost of debt securities sold (1) $ 122,652 $ 133,812 $ 2,245 Gross realized gains on sales 4 38 53 Gross realized losses on sales (2,975 ) (2,588 ) (1 ) Total proceeds from sales of debt securities $ 119,681 $ 131,262 $ 2,297 (1) Amortized cost of investments sold is determined on a specific identification basis. Tax-exempt interest earned on the municipal securities portfolio was $4.5 million for the year ended December 31, 2018 , $4.0 million for the year ended December 31, 2017 , and $3.6 million for the year ended December 31, 2016 . The average balance of tax-exempt investments was $119.2 million and $111.6 million for the years ended December 31, 2018 and December 31, 2017 , respectively. Equity Securities As of December 31, 2018 , the Company held equity securities with a fair value of $1.4 million , compared to no equity securities held at December 31, 2017 . At December 31, 2018 , the equity portfolio consisted primarily of investments in a diversified group of mutual funds, with a portion of the portfolio invested in individual common stock of entities in the financial services industry. In the first quarter of 2018, the Company adopted ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," and as a result, changes in fair value of the equity securities are recognized in the Company's Consolidated Statement of Income in the "Other income" line item. For the year ended December 31, 2018 , the Company's net fair value loss on equity securities was $204 thousand . There were no sales on equity securities in the year ended December 31, 2018 , however $21 thousand in capital gains distributions were realized from mutual funds. For the year ended December 31, 2017 , the amortized cost of equity securities sold based on trade date, if applicable, amounted to $10.9 million , resulting in net realized gains of $3.3 million . For the year ended December 31, 2016 , the amortized cost of equity securities sold based on trade date, if applicable, amounted to $2.1 million , resulting in net realized gains of $750 thousand . The amortized cost of equity securities sold is determined on a specific identification basis. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans | Loans The Company specializes in lending to business entities, non-profit organizations, professional practices and individuals. The Company's primary lending focus is on the development of high-quality commercial relationships achieved through active business development efforts, long-term relationships with established commercial developers, strong community involvement and focused marketing strategies. Loans made to businesses non-profits, and professional practices may include commercial mortgage loans, construction and land development loans, secured and unsecured commercial loans and lines of credit, and letters of credit. The Company also originates equipment lease financing for businesses. Loans made to individuals include conventional residential mortgage loans, home equity loans and lines, residential construction loans on owner-occupied primary and secondary residences, and secured and unsecured personal loans and lines of credit. The Company manages its loan portfolio to avoid concentration by industry, relationship size and source of repayment to lessen its credit risk exposure. See also Note 4, "Allowance for Loan Losses," to the Company's consolidated financial statements, contained below, for information on the Company's credit risk management, non-accrual, impaired and troubled debt restructured loans and the allowance for loan losses. See Note 15, "Fair Value Measurements," to the Company's consolidated financial statements, contained below, for further information regarding the Company's fair value measurements for loans, and Note 8, "Derivatives and Hedging Activities," contained below to the Company's consolidated financial statements, contained below, for information regarding interest-rate swap agreements related to certain commercial loans. For additional information on unadvanced loans and lines, commitments to originate loans, letters of credit and commitments to originate loans for sale or to sell loans see Note 9, "Commitments, Contingencies and Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk," contained below. Loan Portfolio Classifications Major classifications of loans at the periods indicated were as follows: (Dollars in thousands) December 31, 2018 December 31, 2017 Commercial real estate $ 1,303,879 $ 1,201,351 Commercial and industrial 514,253 498,802 Commercial construction 234,430 274,905 Total commercial loans 2,052,562 1,975,058 Residential mortgages 231,501 195,492 Home equity loans and lines 96,116 91,706 Consumer 10,241 10,293 Total retail loans 337,858 297,491 Gross loans 2,390,420 2,272,549 Deferred loan origination fees, net (2,914 ) (2,645 ) Total loans 2,387,506 2,269,904 Allowance for loan losses (33,849 ) (32,915 ) Net loans $ 2,353,657 $ 2,236,989 Loans originated by other banks in which the Company is a participating institution are carried in the loan portfolio at the Company's pro-rata share of ownership. Loans originated by other banks in which the Company is a participating institution amounted to $63.5 million at December 31, 2018 and $91.6 million at December 31, 2017 . See also "Loans serviced for others" below for information related to commercial loans participated out to various other institutions. Related Party Loans Certain of the Company's directors, officers, principal stockholders and their associates are credit customers of the Company in the ordinary course of business. In addition, certain directors are also directors, trustees, officers or stockholders of corporations and non-profit entities or members of partnerships that are customers of the Bank and that enter into loan and other transactions with the Bank in the ordinary course of business. All loans and commitments included in such transactions are on such terms, including interest rates, repayment terms and collateral, as those prevailing at the time for comparable transactions with persons who are not affiliated with the Bank and do not involve more than a normal risk of collectability or present other features unfavorable to the Bank. As of December 31, 2018 , and 2017 , the outstanding loan balances to directors, officers, principal stockholders and their associates were $50.2 million and $33.9 million , respectively. All loans to these related parties were current and accruing at those dates. Unadvanced portions of lines of credit available to these individuals were $9.8 million and $16.8 million , as of December 31, 2018 and 2017 , respectively. During 2018 , new loans and net increases in loan balances or lines of credit under existing commitments of $13.3 million were made and principal paydowns of $4.1 million were received. During 2017 , new loans and net increases in loan balances or lines of credit under existing commitments of $30.2 million were made and principal paydowns of $7.9 million were received. Loans serviced for others At December 31, 2018 and 2017 , the Company was servicing residential mortgage loans owned by investors amounting to $17.2 million and $18.4 million , respectively. Additionally, the Company was servicing commercial loans originated by the Company and participated out to various other institutions amounting to $72.1 million and $70.7 million at December 31, 2018 and 2017 , respectively. See the discussion above under the heading "Loan Portfolio Classifications" for further information regarding commercial participations. Loans serving as collateral Loans designated as qualified collateral and pledged to the FHLB for borrowing capacity for the periods indicated are summarized below: (Dollars in thousands) December 31, 2018 December 31, 2017 Commercial real estate $ 311,024 $ 224,703 Residential mortgages 220,815 187,524 Home equity 8,382 9,405 Total loans pledged to FHLB $ 540,221 $ 421,632 Tax-Exempt Interest Tax-exempt interest earned on qualified commercial loans was $2.3 million for the year ended December 31, 2018 and $2.1 million for the both the years ended December 31, 2017 and 2016 . Average tax-exempt loan balances were $66.2 million and $64.4 million for the years ended December 31, 2018 and 2017 , respectively. |
Allowance For Loan Losses
Allowance For Loan Losses | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Allowance for Loan Loss | Allowance for Loan Losses Inherent in the lending process is the risk of loss due to customer non-payment, or "credit risk." The Company's commercial lending focus may entail significant additional credit risks compared to long-term financing on existing, owner-occupied residential real estate. The Company seeks to lessen its credit risk exposure by managing its loan portfolio to avoid concentration by industry, relationship size and source of repayment, and through sound underwriting practices and the credit risk management function; however, management recognizes that loan losses will occur and that the amount of these losses will fluctuate depending on the risk characteristics of the loan portfolio and economic conditions. In making its assessment on the adequacy of the allowance, management considers several quantitative and qualitative factors that could have an effect on the credit quality of the portfolio including: the risk classification of individual loans; individual review of larger and higher risk problem assets; the level of delinquent loans and non-performing loans; impaired and restructured loans; the level of foreclosure activity; net charge-offs; commercial concentrations by industry and property type and by real estate location; the growth and composition of the loan portfolio; as well as trends in the general levels of these indicators. In addition, management monitors expansion in geographic market area, the experience level of lenders and any changes in underwriting criteria, the strength of the local and national economy, including general conditions in the multi-family, commercial real estate and development and construction markets in the Company's local region. Allowance for Probable Loan Losses Methodology On a quarterly basis, management prepares an estimate of the allowance necessary to cover estimated probable credit losses. The Company uses a systematic methodology to measure the amount of estimated loan loss exposure inherent in the portfolio for purposes of establishing a sufficient allowance for loan losses. The methodology makes use of specific reserves for loans individually evaluated and deemed impaired, and general reserves for larger groups of homogeneous loans, which are collectively evaluated relying on a combination of qualitative and quantitative factors that may affect credit quality of the pool. Specific Reserves for loans individually evaluated for impairment When a loan is deemed to be impaired, management estimates the credit loss by comparing the loan's carrying value against either 1) the present value of the expected future cash flows discounted at the loan's effective interest rate; 2) the loan's observable market price; or 3) the expected realizable fair value of the collateral, in the case of collateral dependent loans. A specific allowance is assigned to the impaired loan for the amount of estimated credit loss. Impaired loans are charged-off, in whole or in part, when management believes that the recorded investment in the loan is uncollectible. General Reserves for loans collectively evaluated for impairment In assessing the general reserves management has segmented the portfolio for groups of loans with similar risk characteristics, by I. Non-adversely classified loans, and II. Regulatory problem-asset segments. These groups are further subdivided by loan category or internal risk rating, respectively. The general loss allocation factors take into account the quantitative historic loss experience, qualitative or environmental factors such as those identified above, as well as regulatory guidance and industry data. I. Non-adversely classified loans by credit type: Management has established the modified historic loss factor for non-adversely classified loan segments by first calculating net charge-offs over a period of time, divided by the average loan balance over that same period. The time period utilized equates to the estimated loss emergence period for each loan segment. This average period may be changed from time to time to be reflective of the most appropriate corresponding conditions (market, economic, etc.). These historic loss factors are then adjusted up or down based on management's assessment of current qualitative factors that are likely to cause estimated credit losses as of the evaluation date to differ from the segment's historical loss experience. These key qualitative factors include the following broad categories: • Several key areas of expansion and growth, including geographic market, changes in lending staff, new or expanded product lines, changes in composition and portfolio concentrations; • Changes in the credit trend and current volume and severity of past due loans, non-accrual loans and the severity of adversely classified and impaired loans compared to historical levels; and • The current economic environment and conditions (local, state and national) and their general implications to each loan category. Management weighs the current effect of each of these areas on each particular non-adversely classified loan segment in determining the allowance allocation factors. Management must exercise significant judgment when evaluating the effect of these qualitative factors on the amount of the allowance for loan losses on the non-adversely classified segments because data may not be reasonably available or directly applicable to determine the precise impact of a factor on the collectability of the loan portfolio as of the evaluation date. The methodology contemplates a range of acceptable levels for these factors due to the subjective nature of the factors and the qualitative considerations related to the inherent credit risk in the portfolio. II. Regulatory problem-assets segments by credit rating: For determining the reserve percentages for problem-loans, management has segmented the portfolio following the regulatory problem-asset segments by risk rating: Criticized; Substandard; Doubtful; or Loss, after excluding loans that are individually evaluated for impairment. The modified historic loss factor for problem loan segments was determined by first tracking a sampling of these loans over a period of time, to determine the ultimate resolution. Those balances resulting in charge-offs were calculated as a percentage of the segment's loan balance and an average was calculated over that same period. This average period may be changed from time to time to be reflective of the most appropriate corresponding conditions (market, economic, etc.). These historic loss factors are then adjusted up or down based on management's assessment of current qualitative factors that are likely to cause estimated credit losses as of the evaluation date to differ from the segment's historical loss experience. Management also utilizes regulatory guidance and industry data in relation to the Company's own portfolio statistics as a basis for assessing the reasonableness of the allocation factors for each class of regulatory problem-assets. Management recognizes that additional issues may also impact the estimate of credit losses to some degree. From time to time management will re-evaluate the qualitative factors, regulatory guidance, and industry data in use in order to consider the impact of other issues which, based on changing circumstances, may become more significant in the future. The balances of loans as of December 31, 2018 by portfolio classification and evaluation method are summarized as follows: (Dollars in thousands) Loans individually evaluated for impairment Loans collectively evaluated for impairment Gross Loans Commercial real estate $ 16,318 $ 1,287,561 $ 1,303,879 Commercial and industrial 12,053 502,200 514,253 Commercial construction 1,736 232,694 234,430 Residential mortgages 893 230,608 231,501 Home equity loans and lines 514 95,602 96,116 Consumer 16 10,225 10,241 Total gross loans $ 31,530 $ 2,358,890 $ 2,390,420 The balances of loans as of December 31, 2017 by portfolio classification and evaluation method are summarized as follows: (Dollars in thousands) Loans individually evaluated for impairment Loans collectively evaluated for impairment Gross Loans Commercial real estate $ 13,739 $ 1,187,612 $ 1,201,351 Commercial and industrial 10,096 488,706 498,802 Commercial construction 1,624 273,281 274,905 Residential mortgages 397 195,095 195,492 Home equity loans and lines 371 91,335 91,706 Consumer 35 10,258 10,293 Total gross loans $ 26,262 $ 2,246,287 $ 2,272,549 Credit Risk Management As noted above, the credit risk management function focuses on a wide variety of factors and early detection of credit issues is critical to minimize credit losses. Accordingly, management regularly monitors these factors, among others, through ongoing credit reviews by the Credit Department, an external loan review service, reviews by members of senior management as well as reviews by the Loan Committee and the Board. This review includes the assessment of internal credit quality indicators such as, among others, the risk classification of adversely classified loans, past due and non-accrual loans, impaired and restructured loans, and the level of foreclosure activity. These credit quality indicators are discussed below. Credit Quality Indicators Adversely classified loans The Company's loan risk rating system classifies loans depending on risk of loss characteristics. The classifications range from "substantially risk free" for the highest quality loans and loans that are secured by cash collateral, through a satisfactory range of "minimal," "moderate," "better than average," and "average" risk, to the regulatory problem-asset classifications of "criticized," for loans that may need additional monitoring, and the more severe adverse classifications of "substandard," "doubtful," and "loss" based on criteria established under banking regulations. Loans which are evaluated to be of weaker credit quality are placed on the "watch credit list" and reviewed on a more frequent basis by management. Loans classified as substandard include those loans characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. These loans are inadequately protected by the sound net worth and paying capacity of the borrower; repayment has become increasingly reliant on collateral liquidation or reliance on guaranties; credit weaknesses are well-defined; borrower cash flow is insufficient to meet the required debt service specified in the loan terms and to meet other obligations, such as trade debt and tax payments. Loans classified as doubtful have all the weaknesses inherent in a substandard rated loan with the added characteristic that the weaknesses make collection or full payment from liquidation, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The probability of loss is extremely high, but because of certain important and reasonably specific pending factors which may work to the advantage and strengthening of the loan, its classification as an estimated loss is deferred until more exact status may be determined. Loans classified as loss are generally considered uncollectible at present, although long term recovery of part or all of loan proceeds may be possible. These "loss" loans would require a specific loss reserve or charge-off. Adversely classified loans may be accruing or in non-accrual status and may be additionally designated as impaired or restructured, or some combination thereof. The following tables present the Company's credit risk profile for each portfolio classification by internally assigned adverse risk rating category as of the periods indicated: December 31, 2018 (Dollars in thousands) Adversely Classified Non-Adversely Classified Gross Loans Substandard Doubtful Loss Commercial real estate $ 17,714 $ 240 $ — $ 1,285,925 $ 1,303,879 Commercial and industrial 12,821 — — 501,432 514,253 Commercial construction 2,262 — — 232,168 234,430 Residential mortgages 1,820 — — 229,681 231,501 Home equity loans and lines 561 — — 95,555 96,116 Consumer 35 8 — 10,198 10,241 Total gross loans $ 35,213 $ 248 $ — $ 2,354,959 $ 2,390,420 December 31, 2017 (Dollars in thousands) Adversely Classified Non-Adversely Classified Gross Loans Substandard Doubtful Loss Commercial real estate $ 12,895 $ — $ — $ 1,188,456 $ 1,201,351 Commercial and industrial 9,915 48 1 488,838 498,802 Commercial construction 1,624 — — 273,281 274,905 Residential mortgages 1,355 — — 194,137 195,492 Home equity loans and lines 513 — — 91,193 91,706 Consumer 52 10 — 10,231 10,293 Total gross loans $ 26,354 $ 58 $ 1 $ 2,246,136 $ 2,272,549 Total adversely classified loans amounted to 1.49% of total loans at December 31, 2018 , as compared to 1.16% at December 31, 2017 . Past due and non-accrual loans Loans on which the accrual of interest has been discontinued are designated as non-accrual and the classified portions are credit downgraded to one of the adversely classified categories noted above. Accrual of interest on loans is generally discontinued when a loan becomes contractually past due, with respect to interest or principal, by 90 days, or when reasonable doubt exists as to the full and timely collection of interest or principal. Interest payments received on loans in a non-accrual status are generally applied to principal on the books of the Company. When a loan is placed on non-accrual status, all interest previously accrued but not collected is reversed against current period interest income. Interest accruals are resumed on such loans only when payments are brought current and have remained current for a period of 180 days and when, in the judgment of management, the collectability of both principal and interest is reasonably assured. Additionally, deposit accounts overdrawn for 90 or more days are included in the consumer non-accrual numbers below. The following tables present an age analysis of past due loans by portfolio classification as of the dates indicated: Balance at December 31, 2018 (Dollars in thousands) Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Total Past Due Loans Current Loans Gross Loans Non-accrual Loans Commercial real estate $ 7,596 $ 21 $ 3,821 $ 11,438 $ 1,292,441 $ 1,303,879 $ 6,894 Commercial and industrial 619 17 2,299 2,935 511,318 514,253 3,417 Commercial construction 4,319 — — 4,319 230,111 234,430 176 Residential mortgages 114 — 377 491 231,010 231,501 763 Home equity loans and lines 14 168 209 391 95,725 96,116 514 Consumer 23 31 6 60 10,181 10,241 20 Total gross loans $ 12,685 $ 237 $ 6,712 $ 19,634 $ 2,370,786 $ 2,390,420 $ 11,784 Balance at December 31, 2017 (Dollars in thousands) Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Total Past Due Loans Current Loans Gross Loans Non-accrual Loans Commercial real estate $ 4,200 $ 69 $ 3,569 $ 7,838 $ 1,193,513 $ 1,201,351 $ 6,751 Commercial and industrial 374 527 327 1,228 497,574 498,802 1,294 Commercial construction 2,526 518 — 3,044 271,861 274,905 193 Residential mortgages 1,931 93 89 2,113 193,379 195,492 262 Home equity loans and lines 491 120 12 623 91,083 91,706 463 Consumer 51 5 45 101 10,192 10,293 69 Total gross loans $ 9,573 $ 1,332 $ 4,042 $ 14,947 $ 2,257,602 $ 2,272,549 $ 9,032 At December 31, 2018 and December 31, 2017 , all loans past due 90 days or more were carried as non-accrual, in addition to those loans less than 90 days past due where reasonable doubt existed as to the full and timely collection of interest or principal that have also been designated as non-accrual, despite their payment due status shown in the tables above. Non-accrual loans that were not adversely classified amounted to $81 thousand at December 31, 2018 and $21 thousand at December 31, 2017 . These balances primarily represented the guaranteed portions of non-performing SBA loans. The majority of the non-accrual loan balances were also carried as impaired loans during the periods noted and are discussed further below. The ratio of non-accrual loans to total loans amounted to 0.49% and 0.40% at December 31, 2018 and December 31, 2017 , respectively. The Company's obligation to fulfill the additional funding commitments on impaired loans is generally contingent on the borrower's compliance with the terms of the credit agreement. If the borrower is not in compliance, additional funding commitments may or may not be made at the Company's discretion. At December 31, 2018 , additional funding commitments for loans on non-accrual status was not material. The reduction in interest income for the years ended December 31, associated with non-accruing loans is summarized as follows: (Dollars in thousands) 2018 2017 2016 Income that would have been recognized if non-accrual loans had been current $ 2,106 $ 1,906 $ 1,585 Less income recognized 833 990 722 Reduction in interest income $ 1,273 $ 916 $ 863 Impaired loans Impaired loans are individually significant loans for which management considers it probable that not all amounts due (principal and interest) will be collected in accordance with the original contractual terms. Impaired loans include loans that have been modified in a troubled debt restructuring ("TDR"), see "Troubled debt restructurings" below. Impaired loans are individually evaluated and exclude large groups of smaller-balance homogeneous loans, such as residential mortgage loans and consumer loans, which are collectively evaluated for impairment, and loans that are measured at fair value, unless the loan is amended in a TDR. Management does not set any minimum delay of payments as a factor in reviewing for impaired classification. Management considers the individual payment status, net worth and earnings potential of the borrower, and the value and cash flow of the collateral as factors to determine if a loan will be paid in accordance with its contractual terms. An impaired or TDR loan classification will be considered for upgrade based on the borrower's sustained performance over time and their improving financial condition. Consistent with the criteria for returning non-accrual loans to accrual status, the borrower must demonstrate the ability to continue to service the loan in accordance with the original or modified terms and, in the judgment of management, the collectability of the remaining balances, both principal and interest, are reasonably assured. In the case of TDR loans having had a modified interest rate, that rate must be at, or greater than, a market rate for a similar credit at the time of modification for an upgrade to be considered. Impaired loans are individually evaluated for credit loss and a specific allowance reserve is assigned for the amount of the estimated probable credit loss. Refer to heading "Allowance for probable loan losses methodology" contained within this Note 4 for further discussion of management's methodology used to estimate specific reserves for impaired loans. The carrying value of impaired loans amounted to $31.5 million and $26.3 million at December 31, 2018 and December 31, 2017 , respectively. Total accruing impaired loans amounted to $19.7 million and $17.4 million at December 31, 2018 and December 31, 2017 , respectively, while non-accrual impaired loans amounted to $11.8 million and $8.9 million as of December 31, 2018 and December 31, 2017 , respectively. The following tables set forth the recorded investment in impaired loans and the related specific allowance allocated by portfolio classification as of the dates indicated: Balance at December 31, 2018 (Dollars in thousands) Unpaid contractual principal balance Total recorded investment in impaired loans Recorded investment with no allowance Recorded investment with allowance Related specific allowance Commercial real estate $ 17,140 $ 16,318 $ 15,948 $ 370 $ 55 Commercial and industrial 12,538 12,053 7,752 4,301 2,140 Commercial construction 1,804 1,736 1,736 — — Residential mortgages 970 893 473 420 13 Home equity loans and lines 685 514 514 — — Consumer 16 16 — 16 16 Total $ 33,153 $ 31,530 $ 26,423 $ 5,107 $ 2,224 Balance at December 31, 2017 (Dollars in thousands) Unpaid contractual principal balance Total recorded investment in impaired loans Recorded investment with no allowance Recorded investment with allowance Related specific allowance Commercial real estate $ 15,132 $ 13,739 $ 12,850 $ 889 $ 59 Commercial and industrial 10,458 10,096 7,053 3,043 1,284 Commercial construction 1,678 1,624 1,624 — — Residential mortgages 511 397 262 135 5 Home equity loans and lines 543 371 371 — — Consumer 36 35 — 35 35 Total $ 28,358 $ 26,262 $ 22,160 $ 4,102 $ 1,383 The following table presents the average recorded investment in impaired loans by portfolio classification and the related interest recognized during the year ends indicated: December 31, 2018 December 31, 2017 December 31, 2016 (Dollars in thousands) Average recorded investment Interest income recognized Average recorded investment Interest income (loss) recognized Average recorded investment Interest income recognized Commercial real estate $ 13,971 $ 385 $ 14,473 $ 363 $ 12,988 $ 332 Commercial and industrial 11,801 373 12,272 370 9,790 223 Commercial construction 1,691 93 1,818 92 3,137 150 Residential mortgages 644 — 320 2 301 — Home equity loans and lines 498 — 482 (1 ) 356 (4 ) Consumer 56 — 25 (1 ) 14 — Total $ 28,661 $ 851 $ 29,390 $ 825 $ 26,586 $ 701 All payments received on impaired loans in non-accrual status are applied to principal. Interest income that was not recognized on loans that were deemed impaired as of December 31, 2018 , 2017 and 2016 , amounted to $1.1 million , $890 thousand , and $858 thousand , respectively. At December 31, 2018 , additional funding commitments for impaired loans totaled $290 thousand . The Company's obligation to fulfill the additional funding commitments on impaired loans is generally contingent on the borrower's compliance with the terms of the credit agreement. If the borrower is not in compliance, additional funding commitments may or may not be made at the Company's discretion. Troubled debt restructurings Loans are designated as a TDR when, as part of an agreement to modify the original contractual terms of the loan as a result of financial difficulties of the borrower, the Bank grants the borrower a concession on the terms, that would not otherwise be considered. Typically, such concessions may consist of one or a combination of the following: a reduction in interest rate to a below market rate, taking into account the credit quality of the note; extension of additional credit based on receipt of adequate collateral; or a deferment or reduction of payments (principal or interest) which materially alters the Bank's position or significantly extends the note's maturity date, such that the present value of cash flows to be received is materially less than those contractually established at the loan's origination. All loans that are modified are reviewed by the Company to identify if a TDR has occurred. TDR loans are included in the impaired loan category and, as such, these loans are individually reviewed and evaluated, and a specific reserve is assigned for the amount of the estimated probable credit loss. Total TDR loans, included in the impaired loan balances above, as of December 31, 2018 and December 31, 2017 , were $23.1 million and $20.3 million , respectively. TDR loans on accrual status amounted to $19.4 million and $17.4 million at December 31, 2018 and December 31, 2017 , respectively. TDR loans included in non-performing loans amounted to $3.7 million and $2.9 million at December 31, 2018 and December 31, 2017 , respectively. The Company continues to work with customers, particularly commercial relationships, and enters into loan modifications (which may or may not be TDRs) to the extent deemed to be necessary or appropriate while attempting to achieve the best mutual outcome given the individual financial circumstances and future prospects of the borrower. At December 31, 2018 , additional funding commitments for TDR loans totaled $289 thousand . The Company's obligation to fulfill the additional funding commitments on TDR loans is generally contingent on the borrower's compliance with the terms of the credit agreement. If the borrower is not in compliance, additional funding commitments may or may not be made at the Company's discretion. The following table sets forth the post modification balances of TDRs listed by type of modification for TDRs that occurred during the periods indicated: December 31, 2018 December 31, 2017 (Dollars in thousands) Number of restructurings Amount Number of restructurings Amount Loan advances with adequate collateral 1 $ 240 — $ — Extended maturity date — $ — 1 $ 175 Temporary payment reduction and payment re-amortization of remaining principal over extended term 8 304 6 790 Temporary interest-only payment plan 3 2,349 4 191 Other payment concessions 4 469 — — Total 16 $ 3,362 11 $ 1,156 Amount of specific reserves included in the allowance for loan losses associated with TDRs listed above $ 425 $ 155 Loans modified as TDRs during the year by portfolio classification, are detailed below: December 31, 2018 December 31, 2017 (Dollars in thousands) Number of restructurings Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Number of restructurings Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Commercial real estate 4 $ 2,342 $ 2,349 3 $ 696 $ 674 Commercial and industrial 10 1,283 921 6 386 346 Commercial construction — — — — — — Residential mortgages — — — 1 136 135 Home equity loans and lines 2 112 92 — — — Consumer — — — 1 1 1 Total 16 $ 3,737 $ 3,362 11 $ 1,219 $ 1,156 There were $109 thousand subsequent charge-offs associated with the new TDRs noted in the table above during 2018 and no subsequent charge-offs in 2017 . Interest payments received on non-accruing 2018 and 2017 TDR loans which were applied to principal and not recognized as interest income were not material. Payment defaults by portfolio classification, during the years ended, on loans modified as TDRs within the preceding twelve months are detailed below: December 31, 2018 December 31, 2017 (Dollars in thousands) Number of TDRs that defaulted Post-modification outstanding recorded investment Number of TDRs that defaulted Post-modification outstanding recorded investment Commercial real estate 1 $ 82 — $ — Commercial and industrial 3 273 2 20 Commercial construction — — — — Residential mortgages — — — — Home equity loans and lines 2 92 — — Consumer — — — — Total 6 $ 447 2 $ 20 Other real estate owned ("OREO") The Company carried no OREO at December 31, 2018 or December 31, 2017 . There were no additions, sales or write downs on OREO during 2018 , 2017 or 2016 . At December 31, 2018 , the Company had no consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdictions compared with $101 thousand at December 31, 2017 . Allowance for loan loss activity The allowance for loan losses is established through a provision for loan losses, a direct charge to earnings. Loan losses are charged against the allowance when management believes that the collectability of the loan principal is unlikely. Recoveries on loans previously charged-off are credited to the allowance. The allowance for loan losses amounted to $33.8 million at December 31, 2018 , compared to $32.9 million at December 31, 2017 . The allowance for loan losses to total loans ratio was 1.42% at December 31, 2018 , compared to 1.45% at December 31, 2017 . Based on management's judgment as to the existing credit risks inherent in the loan portfolio, as discussed above under the heading "Credit Quality Indicators," management believes that the Company's allowance for loan losses is adequate to absorb probable losses from specifically known and other probable credit risks associated with the portfolio as of December 31, 2018 . Changes in the allowance for loan losses for the years ended December 31, are summarized as follows: (Dollars in thousands) 2018 2017 2016 Balance at beginning of year $ 32,915 $ 31,342 $ 29,008 Provision 2,250 1,430 2,993 Recoveries 431 755 709 Less: Charge-offs 1,747 612 1,368 Balance at end of year $ 33,849 $ 32,915 $ 31,342 Changes in the allowance for loan losses by portfolio classification for the year ended December 31, 2018 , are presented below: (Dollars in thousands) Cmml Real Estate Cmml and Industrial Cmml Constr Resid. Mortgage Home Equity Cnsmr Total Beginning Balance at December 31, 2017 $ 17,545 $ 9,669 $ 3,947 $ 904 $ 608 $ 242 $ 32,915 Provision 418 2,139 (640 ) 256 (34 ) 111 2,250 Recoveries 51 278 — — 55 47 431 Less: Charge-offs — 1,593 — — — 154 1,747 Ending Balance at December 31, 2018 $ 18,014 $ 10,493 $ 3,307 $ 1,160 $ 629 $ 246 $ 33,849 Ending allowance balance: Allocated to loans individually evaluated for impairment $ 55 $ 2,140 $ — $ 13 $ — $ 16 $ 2,224 Allocated to loans collectively evaluated for impairment $ 17,959 $ 8,353 $ 3,307 $ 1,147 $ 629 $ 230 $ 31,625 Changes in the allowance for loan losses by portfolio classification for the year ended December 31, 2017 , are presented below: (Dollars in thousands) Cmml Real Estate Cmml and Industrial Cmml Constr Resid. Mortgage Home Equity Cnsmr Total Beginning Balance at December 31, 2016 $ 14,902 $ 11,204 $ 3,406 $ 960 $ 634 $ 236 $ 31,342 Provision 2,628 (1,737 ) 541 (56 ) (30 ) 84 1,430 Recoveries 193 550 — — 4 8 755 Less: Charge-offs 178 348 — — — 86 612 Ending Balance at December 31, 2017 $ 17,545 $ 9,669 $ 3,947 $ 904 $ 608 $ 242 $ 32,915 Ending allowance balance: Allocated to loans individually evaluated for impairment $ 59 $ 1,284 $ — $ 5 $ — $ 35 $ 1,383 Allocated to loans collectively evaluated for impairment $ 17,486 $ 8,385 $ 3,947 $ 899 $ 608 $ 207 $ 31,532 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment Premises and equipment at December 31, are summarized as follows: (Dollars in thousands) 2018 2017 Land and land improvements $ 6,722 $ 5,962 Bank premises and leasehold improvements 42,658 42,051 Computer software and equipment 10,054 9,303 Furniture, fixtures and equipment 21,568 20,347 Total premises and equipment, before accumulated depreciation 81,002 77,663 Less accumulated depreciation (43,414 ) (40,641 ) Total premises and equipment, net of accumulated depreciation $ 37,588 $ 37,022 Total depreciation expense related to premises and equipment amounted to $4.7 million for both the years ended December 31, 2018 and 2017 and $4.4 million for the year ended December 31, 2016 . The Company's leases multiple facilities which are contracted under various non-cancelable operating leases, most of which provide options to extend lease periods and periodic rent adjustments. Several leases provide the Company the right of first refusal should the property be offered for sale or purchase options at specified periods mutually agreeable to the parties. The Company has an agreement to purchase one of the leased buildings in its main campus and anticipates this transaction will be completed during the first half of 2019. Total rent expense was $1.4 million for both the years ended December 31, 2018 and 2017 and $1.3 million for the year ended December 31, 2016 . At December 31, 2018 , minimum lease payments for these operating leases were as follows: (Dollars in thousands) Payable in: 2019 $ 1,200 2020 969 2021 950 2022 917 2023 848 Thereafter 6,384 Total minimum lease payments $ 11,268 The Company currently collects rent through non-cancelable leases for a small portion of the overall square-footage within its owned Lowell, MA campus headquarters and at one of its owned branch locations. For the years ended December 31, 2018 , 2017 and 2016 , these leases are deemed immaterial. In January 2019, the Company adopted ASU No. 2016-02, "Leases (Topic 842)." See Note 1, "Summary of Significant Accounting Policies," Item (u) "Recent Accounting Pronouncements," above, under the section Accounting pronouncements not yet adopted by the Company for further information regarding this ASU. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Deposits | Deposits Deposits at December 31, are summarized as follows: (Dollars in thousands) 2018 2017 Non-interest checking $ 765,029 $ 705,846 Interest-bearing checking 403,497 391,111 Savings 193,214 193,385 Money market 862,028 807,931 CDs $250,000 or less 215,200 150,445 CDs greater than $250,000 69,031 45,154 Total customer deposits 2,507,999 2,293,872 Brokered deposits (1) 56,783 147,490 Total deposits $ 2,564,782 $ 2,441,362 (1) Brokered CDs which are $250,000 and under. Total customer deposits (deposits, excluding brokered deposits) include reciprocal balances from checking, money market deposits and CDs received from participating banks in nationwide deposit networks as a result of our customers electing to participate in Company offered programs which allow for enhanced FDIC insurance. Essentially, the equivalent of the customers' original deposited funds comes back to the Company and are carried within the appropriate category under total customer deposits. The Company's balances in these reciprocal products were $342.4 million and $249.6 million at December 31, 2018 and December 31, 2017 , respectively. The aggregate amounts of overdrawn deposits that have been reclassified as loan balances were $470 thousand and $359 thousand at December 31, 2018 and 2017 , respectively. The following table shows the scheduled maturities of CDs (including brokered CDs with weighted average remaining lives of less than six months at both December 31, 2018 and 2017 ): (Dollars in thousands) 2018 2017 Due in less than twelve months $ 223,611 $ 240,995 Due in over one year through two years 93,770 60,692 Due in over two years through three years 16,228 28,141 Due in over three years through four years 5,216 6,592 Due in over four years through five years 1,885 5,614 Due in over five years 304 1,055 Total CDs $ 341,014 $ 343,089 See also Note 15, "Fair Value Measurements," to the Company's consolidated financial statements, contained below, for further information regarding the Company's fair value measurements for deposits. |
Borrowed Funds and Subordinated
Borrowed Funds and Subordinated Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Borrowed Funds and Subordinated Debt | Borrowed Funds and Subordinated Debt Borrowed funds and subordinated debt outstanding at December 31, for the years indicated are summarized as follows: 2018 2017 2016 (Dollars in thousands) Amount Average Rate Amount Average Rate Amount Average Rate Borrowed funds $ 100,492 2.67 % $ 89,000 1.54 % $ 10,671 0.80 % Subordinated debt 14,860 6.23 % 14,847 6.23 % 14,834 6.26 % Total borrowed funds and subordinated debt $ 115,352 3.13 % $ 103,847 2.21 % $ 25,505 3.98 % At December 31, 2018 , 2017 , and 2016 , borrowed funds were comprised solely of FHLB borrowings. FHLB borrowings at December 31, 2018 consisted of $100.0 million in overnight borrowings, with a weighted average rate of 2.68% , and $492 thousand of long-term, no interest borrowings, related to specific lending projects under the FHLB's community development programs, that will mature in March 2038. Maximum FHLB and other borrowings outstanding at any month end during 2018 , 2017 , and 2016 were $100.5 million , $149.3 million , and $43.7 million , respectively. The following table summarizes the average balance and average cost of borrowed funds for the years indicated: Year ended December 31, 2018 2017 2016 (Dollars in thousands) Average Balance Average Cost Average Balance Average Cost Average Balance Average Cost FHLB advances $ 22,250 1.72 % $ 49,546 1.19 % $ 14,551 0.55 % Other borrowings — — — — 107 0.61 % Total borrowed funds $ 22,250 1.72 % $ 49,546 1.19 % $ 14,658 0.55 % The Company's primary borrowing source is the FHLB, however the Company may choose to borrow from other established business partners. "Other borrowings" represents overnight advances from the FRB or federal funds purchased from correspondent banks. As a member of the FHLB, the Bank has the potential capacity to borrow an amount up to the value of its discounted qualified collateral. Borrowings from the FHLB are secured by certain securities from the Company's investment portfolio not otherwise pledged and certain residential and commercial real estate loans. At December 31, 2018 , based on qualifying collateral less outstanding advances, the Bank had the capacity to borrow additional funds from the FHLB of up to approximately $355.0 million . In addition, based on qualifying collateral, the Bank had the capacity to borrow funds from the FRB Discount Window up to approximately $140.0 million at December 31, 2018 . The Bank also has pre-approved borrowing arrangements with large correspondent banks to provide overnight and short-term borrowing capacity. The Company also carried subordinated debt (net of deferred issuance costs) of $14.9 million at December 31, 2018 and $14.8 million at December 31, 2017 and December 31, 2016 , which consisted of $15.0 million in aggregate principal amount of Fixed-to-Floating Rate Subordinated Notes (the "Notes"), issued in January 2015 , in a private placement to an accredited investor. The Notes are intended to qualify as Tier 2 capital for regulatory purposes, mature on January 30, 2030 (the "Maturity Date") and are callable by the Company, subject to regulatory approval, at a premium beginning January 30, 2020 , and at par beginning January 30, 2025 . The Notes pay interest at a fixed rate of 6.00% per annum through January 30, 2025 , and beginning on January 31, 2025 through the Maturity Date, or any early redemption date, the interest rate on the Notes will adjust monthly at an interest rate of 3.90% plus 30-day LIBOR. Original debt issuance costs were $190 thousand and have been netted against the subordinated debt on the consolidated balance sheet in accordance with accounting guidance. These costs are being amortized to interest expense over the life of the Notes. See also Note 15, "Fair Value Measurements," to the Company's consolidated financial statements, contained below, for further information regarding the Company's fair value measurements for borrowed funds and subordinated debt. See Note 2, "Investments," and Note 3, "Loans," to the Company's consolidated financial statements, contained above, for further information regarding securities and loans pledged for borrowed funds. Refer to the "Liquidity" section in Item 2, "Management's Discussion and Analysis," for additional information about other sources of funding available to the Company. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities Interest-rate lock commitments related to the origination of mortgage loans that will be sold are considered derivative instruments. The commitments to sell loans are also considered derivative instruments. The Company generally does not pool mortgage loans for sale, but instead sells the loans on an individual basis. To reduce the net interest-rate exposure arising from its loan sale activity, the Company enters into the commitment to sell these loans at essentially the same time that the interest-rate lock commitment is quoted on the origination of the loan. The Company estimates the fair value of these derivatives based on current secondary mortgage market prices. At December 31, 2018 and 2017 , the estimated fair value of the Company's interest-rate lock commitments and commitments to sell these mortgage loans were deemed immaterial. The Company may use interest-rate swaps as part of its interest-rate risk management strategy. Interest-rate swap agreements may be entered into as hedges against future interest rate fluctuations on specifically identified assets or liabilities. The Company had no derivative fair value hedges or derivative cash flow hedges at December 31, 2018 and 2017 . The Company has a "Back-to-Back Swap" program whereby the Bank enters into an interest-rate swap with a qualified commercial banking customer and simultaneously enters into an equal and opposite interest-rate swap with a swap counterparty. The customer interest-rate swap agreement allows commercial banking customers to convert a floating-rate loan payment to a fixed-rate payment. The transaction structure effectively minimizes the Bank's net risk exposure resulting from such transactions. Customer-related credit risk is minimized by the cross collateralization of the loan and the interest-rate swap agreement. As detailed in Note 1, "Summary of Significant Accounting Policies," under Item (o), "Derivatives," Back-to-Back Swaps are not speculative; rather, the transactions result from a service the Company provides to certain commercial customers. Back-to-Back swaps do not meet hedge accounting requirements and therefore changes in the fair value of both the customer swaps and the counterparty swaps, which have an offsetting relationship, are recognized directly in earnings. As a result of this offsetting relationship, there were no net gains or losses recognized in income on Back-to-Back Swaps during the years ended December 31, 2018 , December 31, 2017 or December 31, 2016 . Each Back-to-Back swap transaction consists of two interest-rate swaps (a customer swap and offsetting counterparty swap) and amounted to a total number of eight and six interest-rate swaps outstanding at December 31, 2018 and December 31, 2017 , respectively, with an aggregate notional amount of $37.7 million and $29.4 million on those respective dates. Asset derivatives are included in the line item prepaid expenses and other assets and liability derivatives are included in the accrued expenses and other liabilities line item on the consolidated balance sheets, respectively. Interest-rate swaps with the counterparty are subject to master netting agreements, while interest-rate swaps with customers are not. The table below presents the fair value and classification of the Company's derivative financial instruments for the periods presented: As of December 31, 2018 As of December 31, 2017 (Dollars in thousands) Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Interest-rate contracts - pay floating, received fixed $ 45 $ 723 $ 25 $ 568 Interest-rate contracts - pay fixed, receive floating 678 — 543 — Total interest-rate swaps $ 723 $ 723 $ 568 $ 568 By using derivative financial instruments, the Company exposes itself to counterparty-credit risk. Credit risk is the risk of failure by the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Company, which creates credit risk for the Company. When the fair value of a derivative is negative, the Company owes the counterparty and, therefore, it does not possess credit risk. The credit risk in derivative instruments is mitigated by entering into transactions with highly-rated counterparties that management believes to be creditworthy. The Company has one counterparty and it was rated A and A2 by Standard & Poor's and Moody's, respectively, at December 31, 2018 . Additionally, counterparty interest-rate swaps contain provisions for collateral to be posted if the derivative exposure exceeds a threshold amount. The Company had credit risk exposure amounting to $678 thousand and $543 thousand at December 31, 2018 and December 31, 2017 respectively, relating to interest-rate swaps with counterparties. The Company held cash collateral of $850 thousand at December 31, 2018 , and $480 thousand at December 31, 2017 . Collateral held by the Company is restricted and not considered an asset of the Company. Therefore, it is not carried on the Company's consolidated balance sheet. The tables below present the Company's asset derivative positions and the potential effect of those netting arrangements on its financial position, as of the periods presented. As noted above, interest-rate swaps with customers are not subject to master netting agreements and therefore are not included in the tables below. As of December 31, 2018 (Dollars in thousands) Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets Presented in the Statement of Financial Position Asset Derivatives Interest-rate contracts - pay fixed, receive floating $ 723 $ 45 $ 678 As of December 31, 2017 (Dollars in thousands) Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets Presented in the Statement of Financial Position Asset Derivatives Interest-rate contracts - pay fixed, receive floating $ 568 $ 25 $ 543 The Company's interest-rate swaps with counterparties contain credit-risk-related contingent provisions. These provisions provide the counterparty with the right to terminate its derivative positions and require the Company to settle its obligations under the agreements if the Company defaults on certain of its indebtedness. The Company also participates in loans originated by third party banks, where the originating bank utilizes a back-to-back interest-rate swap structure; however, the Company is not a party to the swap agreements. Under the terms of the loan participations, the Company has accepted contingent liabilities that would only be realized if the swaps were terminated early and there were outstanding losses not covered by the underlying borrowers and the borrowers' pledged collateral. If applicable, the Company's swap-loss exposure would be equal to the percentage of the Company's participation in the underlying loan applied to the originating bank's swap loss. At December 31, 2018 , the Company had one such participation loan and, at December 31, 2017 , the Company had two such participation loans. At December 31, 2018 , management considers the risk of material swap loss exposure related to these participation loans to be unlikely based on the swap market value, as well as the borrower's financial and collateral strength. See also Note 9, "Commitments, Contingencies and Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk," to the Company's consolidated financial statements, contained below, for further information on the Company's commitments and contingencies. |
Committments, Contingencies and
Committments, Contingencies and Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk | (9) Commitments, Contingencies and Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to originate loans, letters of credit, and unadvanced portions of loans and lines of credit. The instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The contractual amounts of these instruments reflect the extent of involvement the Company has in the particular classes of financial instruments. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and letters of credit is represented by the contractual amounts of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Financial instruments with off-balance sheet credit risk at December 31, 2018 and 2017 are as follows: (Dollars in thousands) 2018 2017 Commitments to originate loans $ 71,586 $ 13,830 Commitments to originate residential mortgages loans for sale — 2,078 Commitments to sell residential mortgage loans 701 2,286 Letters of credit 23,482 21,576 Unadvanced portions of commercial real estate loans 39,311 26,947 Unadvanced portions of commercial loans and lines 453,381 432,731 Unadvanced portions of construction loans (commercial & residential) 240,019 209,916 Unadvanced portions of home equity lines 100,227 94,012 Unadvanced portions of consumer loans 4,270 4,290 Commitments to originate loans are agreements to lend to a customer provided there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee by the customer. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer's credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the borrower. The Company originates residential mortgage loans intended for sale under agreements to sell such loans on an individual loan basis and may retain or sell the servicing when selling the loans. Loans sold are subject to standard secondary market underwriting and eligibility representations and warranties over the life of the loan and are subject to an early payment default period covering the first four payments for certain loan sales. Letters of credit are conditional commitments issued by the Company to guarantee the financial obligation or performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. If the letter of credit is drawn upon, a loan is created for the customer, generally a commercial loan, with the same criteria associated with similar commercial loans. Unadvanced portions of loans and lines of credit represent credit extended to customers but not yet drawn upon and are secured or guaranteed under preexisting loan agreements and credit evaluations having taken into consideration the full commitment amount. See also Note 8, "Derivatives and Hedging Activities," to the Company's consolidated financial statements, contained above, for information on the Company's interest-rate lock commitments, interest-rate swaps, and participation in loans originated by third-party banks with potential contingent liabilities. There are no material pending legal proceedings to which the Company or its subsidiaries are a party or to which any of its property is subject, other than ordinary and routine litigation incidental to the business of the Company. Management does not believe resolution of any present litigation will have a material adverse effect on the consolidated financial condition or results of operations of the Company. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Shares Authorized and Share Issuance The Company's authorized capital is divided into common stock and preferred stock. The Company is authorized to issue 40,000,000 shares of common stock, with a par value of $0.01 , and as of December 31, 2018 had 11,708,218 shares issued and outstanding. The Company is authorized to issue 1,000,000 shares of preferred stock, with a par value of $0.01 . No preferred stock has been issued as of the date of this Form 10-K. Holders of common stock are entitled to one vote per share and are entitled to receive dividends if and when declared by the Board. Dividend and liquidation rights of the common stock may be subject to the rights of any outstanding preferred stock. The Company has a shareholders' rights plan. Under the plan, each share of common stock includes a right to purchase under certain circumstances one one-hundredth of a share of the Company's Series A Junior Participating Preferred Stock, par value $0.01 per share, at a purchase price of $122.50 per one one-hundredth of a preferred share, subject to adjustment, or, in certain circumstances, to receive cash, property, shares of common stock or other securities of the Company. The rights are not presently exercisable and remain attached to the shares of common stock until the occurrence of certain triggering events that would ordinarily be associated with an unsolicited acquisition or attempted acquisition of 10% or more of the Company's outstanding shares of common stock. The rights have no voting or dividend privileges, and unless and until they become exercisable, have no dilutive effect on the earnings of the Company. The rights will expire, unless earlier redeemed, exchanged, or otherwise rescinded by the Company, on January 13, 2028 . The Company's stock incentive plans permit the Board to grant, under various terms, stock options (for the purchase of newly issued shares of common stock), common stock, restricted stock awards, restricted stock units and stock appreciation rights to officers and other employees, non-employee directors and consultants. The Company issues stock options and restricted stock awards to officers and other employees and restricted stock awards and stock compensation in lieu of cash fees to non-employee directors. The restricted stock awards allow for the non-forfeitable receipt of dividends, and the voting of all shares, whether or not vested, throughout the vesting periods at the same proportional level as common shares outstanding. The unvested restricted stock awards are the Company's only participating securities and are included in shares outstanding. Unvested participating restricted awards amounted to 91,708 shares and 117,219 shares as of December 31, 2018 and December 31, 2017 , respectively. See Item (s), "Earnings per Share," contained in Note 1, "Summary of Significant Accounting Policies," and Note 14, "Earnings per Share," for additional information regarding unvested participating restricted awards and the Company's earnings per share calculation. Upon vesting, restricted stock awards may be net share-settled to cover payment for employee tax obligations, resulting in shares of common stock being reacquired by the Company and returned to the pool of shares reserved for issuance under the incentive plans. Chapter 156D of the Massachusetts General Laws, a statute known as the Massachusetts Business Corporation Act, which applies to Massachusetts corporations such as the Company, eliminates the concept of "treasury stock" and provides that shares reacquired by a Massachusetts company will be treated as authorized but unissued shares. See also Note 12, "Stock-Based Compensation," to the Company's consolidated financial statements, contained below, for further information regarding the Company's stock incentive plans. The Company's stock incentive plans also allow for newly issued shares of common stock to be issued without restrictions to officers and other employees, non-employee directors and consultants. From time to time, the Company issues shares to community members for consulting on regional advisory councils and grants shares of fully vested stock as employee anniversary awards. These shares vest immediately and the cost, which is based on the market price on the date of grant and deemed to be immaterial, is expensed in the period in which the services are rendered. In addition to shares issued to employees, non-employee directors, and community members for consulting on regional advisory councils, and shares issued through equity offerings (see "Capital Raised and Capital Adequacy Requirements" below), the Company maintains a dividend reinvestment and direct stock purchase plan ("DRSPP") which enables stockholders, at their discretion, to elect to reinvest cash dividends paid on their shares of the Company's common stock by purchasing additional shares of common stock from the Company at a purchase price equal to fair market value. Under the DRSPP, stockholders and new investors also have the opportunity to purchase shares of the Company's common stock without brokerage fees, subject to monthly minimums and maximums. During the years ended December 31, 2018 , 2017 , and 2016 , the direct purchase component of the DRSPP was used by stockholders to purchase 2,652 , 2,014 and 1,562 shares of the Company's common stock totaling $94 thousand , $70 thousand , and $38 thousand respectively. See "Dividends" below for further information about the dividend reinvestment portion of the DRSPP. Capital Raised and Capital Adequacy Requirements Capital planning by the Company and the Bank considers current needs and anticipated future growth. Historically, exclusive of earnings, the primary sources of capital for the Company and the Bank have been common stock issuances and proceeds from the issuance of subordinated debt. Ongoing sources of capital include the retention of earnings, less dividends paid, proceeds from the exercise of employee stock options and proceeds from purchases of shares pursuant to the DRSPP. The Company believes its current capital is adequate to support ongoing operations. The Company's most recent common stock issuance was in the second quarter of 2016, when the Company completed a combined shareholder subscription rights offering and supplemental community offering (the "Offering"), at an offering price of $21.50 per share, under its $40 million shelf registration statement (Reg.No. 333-190017). The Company issued 930,232 shares of common stock and received gross proceeds of $20.0 million ( $19.7 million , net of offering costs). The Company contributed the net proceeds to the Bank to support future asset growth and for general corporate purposes. See Note 14, "Earnings Per Share," for further information regarding the impact of the offering on earnings per share. Since January 1, 2015, the Company has been subject to increasing capital ratios, with a phase-in period that ended in January 2019, as a result of regulation adopted by the federal bank regulatory agencies known as the "Basel III Rules." Management believes, as of December 31, 2018 , that the Company and the Bank met all capital adequacy requirements to which they were subject. As of December 31, 2018 and December 31, 2017 , the Company met the definition of "well-capitalized" under the applicable Federal Reserve Board regulations and the Bank qualified as "well-capitalized" under the prompt corrective action regulations of Basel III and the FDIC. The Company's and the Bank's actual capital amounts and ratios are presented as of December 31, 2018 and December 31, 2017 in the tables below: Actual Minimum Capital for Capital Adequacy Purposes (1) Minimum Capital To Be Well Capitalized (2) (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2018 The Company Total Capital (to risk weighted assets) $ 297,402 11.77 % $ 202,172 8.00 % N/A N/A Tier 1 Capital (to risk weighted assets) 250,925 9.93 % 151,629 6.00 % N/A N/A Tier 1 Capital (to average assets) or Leverage Ratio 250,925 8.56 % 117,198 4.00 % N/A N/A Common equity tier 1 capital (to risk-weighted assets) 250,925 9.93 % 113,722 4.50 % N/A N/A The Bank Total Capital (to risk weighted assets) $ 297,162 11.76 % $ 202,172 8.00 % $ 252,715 10.00 % Tier 1 Capital (to risk weighted assets) 265,545 10.51 % 151,629 6.00 % 202,172 8.00 % Tier 1 Capital (to average assets) or Leverage Ratio 265,545 9.06 % 117,198 4.00 % 146,498 5.00 % Common equity tier 1 capital (to risk-weighted assets) 265,545 10.51 % 113,722 4.50 % 164,265 6.50 % Actual Minimum Capital (1) Minimum Capital To Be Well Capitalized (2) (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2017 The Company Total Capital (to risk weighted assets) $ 270,826 11.21 % $ 193,327 8.00 % N/A N/A Tier 1 Capital (to risk weighted assets) 225,738 9.34 % 144,995 6.00 % N/A N/A Tier 1 Capital (to average assets) or Leverage Ratio 225,738 8.22 % 109,838 4.00 % N/A N/A Common equity tier 1 capital (to risk-weighted assets) 225,738 9.34 % 108,747 4.50 % N/A N/A The Bank Total Capital (to risk weighted assets) $ 270,150 11.18 % $ 193,301 8.00 % $ 241,626 10.00 % Tier 1 Capital (to risk weighted assets) 239,910 9.93 % 144,976 6.00 % 193,301 8.00 % Tier 1 Capital (to average assets) or Leverage Ratio 239,910 8.74 % 109,837 4.00 % 137,296 5.00 % Common equity tier 1 capital (to risk-weighted assets) 239,910 9.93 % 108,732 4.50 % 157,057 6.50 % (1) Before application of the capital conservation buffer of 1.875% as of December 31, 2018 and 1.25% as of December 31, 2017 , see discussion below. (2) For the Bank to qualify as "well-capitalized," it must maintain at least the minimum ratios listed. This prompt corrective action framework requirement does not apply to the Company. Under the Basel III Rules, capital ratio requirements for all banking organizations include a "capital conservation buffer," of 2.50% above the regulatory minimum risk-based capital requirements shown above. The capital conservation buffer requirement began to be phased in beginning in January 2016 at 0.625% of risk-weighted assets and increased by that amount each year until fully implemented in January 2019. If a banking organization dips into its capital conservation buffer it may be restricted in its ability to pay dividends and discretionary bonus payments to its executive officers. Both the Company's and the Bank's actual ratios, as outlined in the table above, would exceed the Basel III risk-based capital requirement with full capital conservation buffer as of December 31, 2018 . See also "Supervision and Regulation," contained in Item 1, "Business," for further information on the Basel III requirements. The Basel III minimum capital ratio requirements as applicable to the Company and the Bank in January 2019 after the full phase-in period are summarized in the table below: Basel III Minimum for Capital Adequacy Purposes Basel III Additional Capital Conservation Buffer Basel III "Adequate" Ratio with Capital Conservation Buffer Total Capital (to risk weighted assets) 8.00% 2.50% 10.50% Tier 1 Capital (to risk weighted assets) 6.00% 2.50% 8.50% Tier 1 Capital (to average assets) or Leverage Ratio 4.00% — 4.00% Common equity tier 1 capital (to risk-weighted assets) 4.50% 2.50% 7.00% Failure to meet minimum capital requirements can initiate or result in certain mandatory and possibly additional discretionary supervisory actions by regulators that, if undertaken, could have a material adverse effect on the Company's consolidated financial statements. Under applicable capital adequacy requirements and the regulatory framework for prompt corrective action applicable to the Bank, the Company must meet specific capital guidelines that involve quantitative measures of the Company's assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company's capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Dividends Neither the Company nor the Bank may declare or pay dividends on its stock if the effect thereof would cause stockholders' equity to be reduced below applicable regulatory capital requirements or if such declaration and payment would otherwise violate regulatory requirements. As the principal asset of the Company, the Bank currently provides the only source of cash for the payment of dividends by the Company. Under Massachusetts law, trust companies such as the Bank may pay dividends only out of "net profits" and only to the extent that such payments will not impair the Bank's capital stock. Any dividend payment that would exceed the total of the Bank's net profits for the current year plus its retained net profits of the preceding two years would require the Massachusetts Division of Banks' approval. Applicable provisions of the FDIC Improvement Act also prohibits a bank from paying any dividends on its capital stock if the bank is in default on the payment of any assessment to the FDIC or if the payment of dividends would otherwise cause the bank to become undercapitalized. Any restrictions, regulatory or otherwise, on the ability of the Bank to pay dividends to the Company may restrict the ability of the Company to pay dividends to the holders of its common stock. The statutory term "net profits" essentially equates with the accounting term "net income" and is defined under the Massachusetts banking statutes to mean the remainder of all earnings from current operations plus actual recoveries on loans and investments and other assets after deducting from such total all current operating expenses, actual losses, accrued dividends on any preferred stock and all federal and state taxes. For the year ended December 31, 2018 , the Company declared and paid $6.8 million in cash dividends. Stockholders utilized the dividend reinvestment portion of the DRSPP to purchase an aggregate of 37,999 shares of the Company's common stock totaling $1.3 million . In 2017 , the Company declared and paid $6.2 million in cash dividends. In 2017 , stockholders utilized the dividend reinvestment portion of the DRSPP to purchase 44,752 shares of the Company's common stock totaling $1.5 million . In 2016 , the Company declared and paid $5.7 million in cash dividends. Stockholders utilized the dividend reinvestment portion of the DRSPP to purchase 53,516 shares of the Company's common stock totaling $1.4 million . See "Shares Authorized and Share Issuance" above in this Note 10 for more information on the DRSPP, including the direct stock purchase component of the plan. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans 401(k) Defined Contribution Plan The Company has a 401(k) defined contribution employee benefit plan. The 401(k) plan allows eligible employees to contribute a percentage of their earnings to the plan. A portion of an employee's contribution, as determined by the Compensation Committee of the Board of Directors, is matched by the Company. In 2018 , the Company's percentage match was 70% up to the first 6% contributed by the employee, while in 2017 and 2016 , the Company's percentage match was 60% up to the first 6% contributed by the employee. All eligible employees, at least 18 years of age and completing 1 hour of service, may participate in the 401(k) plan. Since the fourth quarter of 2017, vesting for the Company's 401(k) retirement plan matching contribution is based on years of service with participants becoming 25% vested on the anniversary of their hire date and each subsequent year until they are 100% vested following four years of service. Unvested amounts not distributable to an employee following termination of employment are used to offset plan expenses and the Company's matching contributions. The Company's expense for the 401(k) plan match was $1.3 million , $965 thousand and $938 thousand , respectively, for the years ended December 31, 2018 , 2017 , and 2016 . Supplemental Employee Retirement Plans ("SERPs") The Company has salary continuation agreements with two of its current executive officers and one former executive officer. These salary continuation agreements provide for predetermined fixed-cash supplemental retirement benefits to be provided for a period of 20 years after each individual reaches a defined "benefit age." The individuals covered under the SERP have reached the defined benefit age and are receiving payments under the plan. Additionally, the Company has not recognized service costs in the current or prior year as each officer had previously attained their individually defined benefit age and was fully vested under the plan. This non-qualified plan represents a direct liability of the Company, and as such has no specific assets set aside to settle the benefit obligation. The funded status is the aggregate amount accrued, or the "accumulated benefit obligation," which is equal to the present value of the benefits to be provided to the employee or any beneficiary. Because the Company's benefit obligations provide for predetermined fixed-cash payments, the Company does not have any unrecognized costs to be included as a component of accumulated other comprehensive income. The amounts charged to expense for this plan are included in the table below. The Company anticipates accruing an additional $100 thousand to the SERP for the year ending December 31, 2019 . The following table provides a reconciliation of the changes in the supplemental retirement benefit obligation and the net periodic benefit cost for the years ended December 31: (Dollars in thousands) 2018 2017 2016 Reconciliation of benefit obligation: Benefit obligation at beginning of year $ 2,372 $ 2,502 $ 2,654 Net periodic benefit cost: Interest cost 110 110 124 Actuarial (gain) loss (32 ) 36 — Net periodic benefit costs $ 78 $ 146 $ 124 Benefits paid (276 ) (276 ) (276 ) Benefit obligation at end of year $ 2,174 $ 2,372 $ 2,502 Funded status: Accrued liability as of December 31 $ (2,174 ) $ (2,372 ) $ (2,502 ) Discount rate used for benefit obligation (1) 4.75 % 4.50 % 4.75 % (1) Management utilizes the Moody's 20 year AA corporate bond rates to establish the reasonableness of the discount rate used. The Company reviews and periodically updates the discount rate to reflect changes in bond market rates. The impact of the discount rate change is reflected as the actuarial gain or loss. SERP benefits expected to be paid in each of the next five years and in the aggregate five years thereafter: (Dollars in thousands) 2019 $ 276 2020 276 2021 276 2022 276 2023 276 2024-2028 1,269 Additionally, on December 11, 2018, the Board approved and adopted the Enterprise Bank Supplemental Executive Retirement and Deferred Compensation Plan. The plan is unfunded and is maintained for the purpose of providing deferred compensation to a certain group of management employees. The impact of adoption of this plan in 2018 was not material. Please refer to Exhibit 10.17 attached to this Form 10-K for complete description of the plan. Supplemental Life Insurance The Company has provided supplemental life insurance through split-dollar life insurance arrangements for certain executive and senior officers on whom the Bank owns BOLI. See Item (k), "Bank Owned Life Insurance," in Note 1, "Summary of Significant Accounting Policies," for further information regarding BOLI. These arrangements provide a death benefit to the officer's designated beneficiaries that extend to postretirement periods for some of the supplemental life insurance plans. The Company has recognized a liability for these future postretirement benefits. These non-qualified plans represent a direct liability of the Company, and as such has no specific assets set aside to settle the benefit obligation. The funded status is the aggregate amount accrued, or the "accumulated postretirement benefit obligation," which is the present value of the post-retirement benefits associated with this arrangement. The following table provides a reconciliation of the changes in the supplemental life insurance plan obligation and the net periodic benefit cost for the years ended December 31: (Dollars in thousands) 2018 2017 2016 Reconciliation of benefit obligation: Benefit obligation at beginning of year $ 2,032 $ 1,895 $ 1,792 Net periodic benefit cost: Service cost (13 ) (11 ) (9 ) Interest cost 94 91 88 Actuarial (gain) loss (29 ) 57 24 Total net period cost $ 52 $ 137 $ 103 Benefit obligation at end of year $ 2,084 $ 2,032 $ 1,895 Funded status: Accrued liability as of December 31 $ (2,084 ) $ (2,032 ) $ (1,895 ) Discount rate used for benefit obligation (1) 4.75 % 4.50 % 4.75 % (1) Management utilizes the Moody's 20 year AA corporate bond rates to establish the reasonableness of the discount rate used. The Company reviews and periodically updates the discount rate to reflect changes in bond market rates. The impact of the discount rate change is reflected as the actuarial gain or loss. The amounts charged to expense for the postretirement cost of insurance for split dollar insurance coverage are included in the table above. The Company anticipates accruing an additional $199 thousand to the plan for the year ending December 31, 2019 . See also Note 12, "Stock-Based Compensation," to the Company's consolidated financial statements, contained below, for further information regarding employee benefits offered in the form of stock options and stock awards. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company currently has two individual stock incentive plans: the 2009 plan, as amended, and the 2016 plan, as amended. The plans permit the Board to grant, under various terms, both incentive and non-qualified stock options (for the purchase of newly issued shares of common stock), restricted stock, restricted stock units and stock appreciation rights to officers and other employees, directors and consultants. Option exercises and restricted stock vesting may be net settled to cover option costs and employee tax obligations under the terms of the respective plan. These plans also allow for newly issued shares of common stock to be issued without restrictions to officers and other employees, directors and consultants. As of December 31, 2018 , 67,857 shares and 350,000 shares remain available for future grants under the 2009 and the 2016 plans, respectively. The 2009 plan expires in March of 2019. The Company's stock-based compensation expense related to these plans includes stock options and stock awards to officers and other employees included in salary and benefits expense, and stock awards and stock compensation in lieu of cash fees to non-employee directors both included in other operating expenses. Total stock-based compensation expense was $1.8 million for both the years ended December 31, 2018 and December 31, 2017 , and $2.4 million for the year ended December 31, 2016 . The total tax benefit recognized related to the stock-based compensation expense was $519 thousand , $716 thousand and $972 thousand for the years ended 2018 , 2017 and 2016 , respectively. A tax benefit associated with employee stock option exercises and vesting of stock compensation of approximately $302 thousand was recorded as a reduction of the Company's income tax expense for the year ended December 31, 2018 , compared with $922 thousand for the year ended December 31, 2017 . These amounts, treated as discrete tax items in the period in which they occur, will vary from year to year as a function of the volume of share-based payments vested or exercised and the then current market price of the Company's stock in comparison to the compensation cost recognized in the Company's consolidated financial statements. Prior to 2017, the related tax benefits were recorded to additional paid-in-capital and had no impact on the Company's income statements. Those tax benefits amounted to $789 thousand for the year ended December 31, 2016 . Stock Option Awards Options granted generally vest 50% in year two and 50% in year four , on the anniversary date of the awards. Vested options are only exercisable while the employee remains employed with the Bank and for a limited time thereafter. For all awards, if a grantee's employment or other service relationship, such as service as a director, is terminated for any reason, then any stock options granted that have not vested as of the time of such termination generally must be forfeited, unless the Compensation Committee or the Board, as the case may be, waives such forfeiture requirement. Under the terms of the plans, stock options may not be granted at less than 100% of the fair market value of the shares on the date of grant and may not have a term of more than ten years. Any shares of common stock reserved for issuance pursuant to options granted under the plans that are returned to the Company unexercised shall remain available for issuance under such plan, while the plan is effective. For participants owning 10% or more of the Company's outstanding common stock (of which there are currently none), incentive stock options may not be granted at less than 110% of the fair market value of the shares on the date of grant and may not have an expiration term of more than five years. The Company utilizes the Black-Scholes option valuation model in order to determine the per share grant date fair value of option grants. The table below provides a summary of the options granted, including the weighted average fair value, the fair value as a percentage of the market value of the stock at the date of grant and the average assumptions used in the model for the years indicated: Stock Option Awards 2018 2017 2016 Options granted 14,755 15,009 31,047 Term in years 10.0 10.0 10.0 Weighted average assumptions used in the fair value model: Expected volatility 37 % 40 % 42 % Expected dividend yield 2.10 % 2.09 % 3.02 % Expected life in years 6.5 7.0 7.0 Risk-free interest rate 2.86 % 2.35 % 1.91 % Weighted average market price on date of grants $ 34.33 $ 30.46 $ 21.91 Per share weighted average fair value $ 11.98 $ 11.34 $ 7.91 Fair value as a percentage of market value at grant date 35 % 37 % 36 % The expected volatility is the anticipated variability in the Company's share price over the expected life of the option and is based on the Company's historical volatility. The expected dividend yield is the Company's projected dividends based on historical annualized dividend yield to coincide with volatility divided by its share price at the date of grant. The expected life represents the period of time that the option is expected to be outstanding. The Company utilized the simplified method, under which the expected term equals the vesting term plus the contractual term divided by 2. The risk-free interest rate is based on the U.S. Department of the Treasury rate in effect at the time of grant for a period equivalent to the expected life of the option. Stock option transactions during the year ended December 31, 2018 are summarized as follows: (Dollars in thousands, except per share data) Options Weighted Average Exercise Price Per Share Weighted Average Remaining Life in Years Aggregate Intrinsic Value Outstanding December 31, 2017 194,218 $ 19.29 5.0 $ 2,866 Granted 14,755 34.33 Exercised 24,842 16.30 Forfeited/Expired 286 23.57 Outstanding December 31, 2018 183,845 $ 20.90 4.9 $ 2,102 Vested and Exercisable at December 31, 2018 127,837 $ 18.14 3.6 $ 1,793 The aggregate intrinsic value in the table above represents the difference between the closing price of the Company's common stock on December 31, 2018 and the exercise price, multiplied by the number of options. If the closing price was less than the exercise price of the option, no intrinsic value was assigned to the grant. At December 31, 2018 , all of the vested and exercisable options were in-the money. The intrinsic value of options vested and exercisable represents the total pretax intrinsic value that would have been received by the option holders had all in-the-money vested option holders exercised their options on December 31, 2018 . The intrinsic value will change based on the fair market value of the Company's stock. Cash received from option exercises was $308 thousand , $355 thousand and $546 thousand in 2018 , 2017 and 2016 , respectively. The total intrinsic value of options exercised was $452 thousand , $1.6 million and $1.0 million in 2018 , 2017 and 2016 , respectively. Cash paid by the Company for the net settlement of options to cover employee tax obligations was $39 thousand , $386 thousand , and $158 thousand in 2018 , 2017 , and 2016 respectively. Stock option activity during the year ended December 31, 2018 for unvested options are summarized as follows: Unvested Options Options Weighted Average Grant Date Fair Value Unvested December 31, 2017 70,549 $ 8.81 Granted 14,755 11.98 Vested 29,035 8.12 Forfeited 261 9.13 Unvested December 31, 2018 56,008 $ 10.00 The total fair value of options vested (based on grant date fair value) during the years ended December 31, 2018 , December 31, 2017 and December 31, 2016 was $236 thousand , $246 thousand , and $237 thousand , respectively. The Company adopted ASU 2016-09 in January 2017 and elected to record forfeitures as they occur. Prior to the adoption of this standard, accounting guidance required that the stock-based compensation expense recognized in earnings be based on the amount of awards ultimately expected to vest; therefore, a forfeiture assumption had to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differed from those estimates. In 2016 , the Company estimated forfeitures based on historical experience for the portion of the grant which had vested and/or grants already vested based on similarities in the type of options and employee group. Compensation expense recognized in association with the stock option awards amounted to $200 thousand , $204 thousand and $267 thousand for the years ended 2018 , 2017 and 2016 , respectively. The total tax benefit recognized related to the stock option expense was $56 thousand , $83 thousand , and $109 thousand for the years ended 2018 , 2017 , and 2016 , respectively. As of December 31, 2018 , there was $313 thousand of unrecognized stock-based compensation expense related to non-vested stock options. That cost is expected to be recognized over the remaining weighted average vesting period of 2.4 years. Stock Awards Restricted stock awards are granted at the market price of the Company' common stock on the date of the grant. Employee awards generally vest over four years in equal portions beginning on the first anniversary date of the award or are performance based awards that vest upon the Company achieving certain predefined performance objectives. Non-employee director awards generally vest over two years in equal portions beginning on the first anniversary date of the award. The table below provides a summary of restricted stock awards granted during the years indicated: Restricted Stock Awards (number of underlying shares) 2018 2017 2016 Two-year vesting 7,280 6,944 9,060 Four-year vesting 16,666 16,253 18,298 Performance-based vesting 20,559 25,623 35,071 Total restricted stock awards 44,505 48,820 62,429 Weighted average grant date fair value $ 34.33 $ 30.46 $ 21.90 If a grantee's employment or other service relationship, such as service as a director, is terminated for any reason, then any shares of restricted stock granted that have not vested as of the time of such termination generally must be forfeited, unless the Compensation Committee or the Board, as the case may be, waives such forfeiture requirement. The restricted stock awards allow for the non-forfeitable receipt of dividends, and the voting of all shares, whether or not vested, throughout the vesting periods at the same proportional level as common shares outstanding. Upon vesting, restricted stock awards may be net share-settled to cover payment for employee tax obligations, resulting in shares of common stock being reacquired by the Company. In 2018 , 2017 , and 2016 the Company paid $520 thousand , $545 thousand and $284 thousand , respectively, to net settle the vesting of restricted stock awards to cover employee tax obligations. Any shares that are returned to the Company prior to vesting or as payment for employee tax obligations upon vesting shall remain available for issuance under such plan, while the plan is still effective. The following table sets forth a summary of the activity for the Company's restricted stock awards: (Dollars in thousands, except per share data) Restricted Stock Weighted Average Grant Price Per Share Weighted Average Remaining Life in Years Aggregate Intrinsic Value Unvested December 31, 2017 117,219 $ 25.09 1.4 $ 3,991 Granted 44,505 34.33 Vested/released 68,954 23.95 Forfeited 1,062 28.92 Unvested December 31, 2018 91,708 $ 30.39 1.6 $ 2,949 Stock-based compensation expense recognized in association with the stock awards amounted to $1.4 million for the year ended December 31, 2018 , $1.3 million for the year ended December 31, 2017 , and $1.8 million for the year ended December 31, 2016 . The total tax benefit recognized related to stock award compensation expense was $393 thousand , $518 thousand , and $746 thousand for the years ended 2018 , 2017 , and 2016 , respectively. As of December 31, 2018 , there remained $1.5 million of unrecognized compensation expense related to the restricted stock awards. That cost is expected to be recognized over the remaining weighted average vesting period of 2.1 years. Stock in Lieu of Directors' Fees In addition to restricted stock awards discussed above, the non-employee members of the Company's Board may opt to receive newly issued shares of the Company's common stock in lieu of cash compensation for attendance at Board and Board Committee meetings. These shares are issued annually each January for Board meetings held in the previous year. Directors must make an irrevocable election to receive shares of common stock in lieu of cash fees prior to December 31st of the preceding year. Directors are granted shares of common stock in lieu of cash fees at a per share issuance price calculated quarterly and based on an average quarterly close price of the Company's common stock on the NASDAQ Global Market. Prior to the 2018 election, Directors were granted shares of common stock in lieu of cash fees at a per share issuance price which reflected the market value of the Company's common stock on the first business day of the year. Total directors' fee expense, included in other operating expenses, amounted to $816 thousand , $747 thousand and $661 thousand for the years ended December 31, 2018 , 2017 and 2016 , respectively. Included in the 2018 expense was stock compensation of $250 thousand , which represented 7,470 shares issued to Directors in January 2019 , at a fair market value price of $33.50 per share, which reflected the fair value of the common stock on January 2, 2018 . Included in the 2017 expense was stock compensation of $281 thousand , which represented 7,326 shares issued to Directors in January 2018 , at a fair market value price of $38.39 per share, which reflected the fair value of the common stock on January 3, 2017 . Included in the 2016 expense was stock compensation of $286 thousand , which represented 12,992 shares issued to Directors in January 2017 , at a fair market value price of $22.04 per share, which reflected the fair value of the common stock on January 4, 2016 . The total tax benefit recognized related to the expense of Director stock compensation for meeting attendance was $70 thousand , $115 thousand and $117 thousand , for the years ended 2018 , 2017 and 2016 , respectively. See also Note 10, "Stockholders' Equity," to the Company's consolidated financial statements, contained above, under the caption "Shares authorized and share issuance," for further information regarding the Company's stock awards. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax expense for the years ended December 31, were calculated using the asset and liability method as follows: (Dollars in thousands) 2018 2017 2016 Current tax expense: Federal $ 6,485 $ 8,222 $ 8,178 State 2,835 2,271 2,244 Total current tax expense 9,320 10,493 10,422 Deferred tax (benefit)/ expense: Federal (392 ) 5,646 (984 ) State (112 ) 89 (277 ) Total deferred tax (benefit)/ expense (504 ) 5,735 (1,261 ) Total income tax expense $ 8,816 $ 16,228 $ 9,161 The provision for income taxes differs from the amount computed by applying the statutory U.S. federal income tax rate of 21% for 2018 , and 35% for 2017 and 2016 to income before taxes as follows: (Dollars in thousands) 2018 2017 2016 Computed income tax expense at statutory rate $ 7,916 $ 12,467 $ 9,769 State income taxes, net of federal tax benefit 2,151 1,534 1,279 Tax-exempt income, net of disallowance (1,034 ) (1,665 ) (1,559 ) Bank-owned life insurance income, net (141 ) (245 ) (261 ) Impact of change in federal statutory rate on deferred tax assets — 4,761 — Tax benefit from stock compensation (302 ) (922 ) — Other 226 298 (67 ) Total income tax expense $ 8,816 $ 16,228 $ 9,161 Effective income tax rate 23.4 % 45.6 % 32.8 % The change in income tax expense and the effective income tax rate since the prior year primarily related to the 2017 Tax Act. Enacted in December 2017, the Tax Act caused the Company to revalue its net deferred tax assets based upon the lower rate at which they will be recovered. The value of the Company's 2017 net deferred tax assets declined, due to the new lower federal tax rate, with the offset charged to Federal tax expense. This non-cash expense for the Company was approximately $4.8 million . The new federal tax bill reduced the Company's federal tax rate beginning in 2018, to 21% from its previous level of approximately 35% . Also beginning in 2017, with the adoption of ASU 2016-09 related to employee share-based payment accounting, tax benefits from stock compensation associated with employee exercises and vesting of stock awards were recorded as a reduction of the Company's tax liability and income tax expense in both 2018 and 2017 . Prior to 2017, the related tax benefits were recorded to additional paid-in capital and had no impact on the Company's income statements. At December 31, the tax effects of each type of income and expense item that give rise to deferred taxes are as follows: (Dollars in thousands) 2018 2017 Deferred tax asset: Allowance for loan losses $ 9,515 $ 9,252 Depreciation 2,118 1,831 Net fair value losses on equity securities 43 — Net unrealized loss on debt securities 402 — Supplemental employee retirement plans 611 667 Non-accrual interest 624 460 Stock-based compensation expense 555 608 Other 359 323 Total 14,227 13,141 Deferred tax liability: Goodwill 1,590 1,590 Net unrealized gains on debt securities — 90 Deferred origination costs 721 710 Other 169 — Total 2,480 2,390 Net deferred tax asset $ 11,747 $ 10,751 Deferred income taxes are recognized based on the expected future tax consequences of differences between the financial statement and tax basis of assets and liabilities, calculated using currently enacted tax rates. Management records net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making this determination, we consider all available positive and negative evidence, including recent financial operations and projected future taxable income. Management believes based upon positive historical and expected future earnings that it is more likely than not the Company will generate sufficient taxable income to realize the deferred tax asset existing at December 31, 2018 . However, factors beyond management's control, such as the general state of the economy, can affect future levels of taxable income and there can be no assurances that sufficient taxable income will be generated to fully realize the deferred tax assets in the future. The Company paid total income taxes in 2018 , 2017 , and 2016 of $8.7 million , $10.5 million , and $10.9 million , respectively. The Company did not have any unrecognized tax benefits accrued as income tax liabilities or receivables or as deferred tax items at December 31, 2018 or December 31, 2017 . The Company invests in qualified affordable housing projects as a limited partner. In 2018 , 2017 and 2016 , the Company recognized $71 thousand of Federal Low Income Housing tax credits per year. The Company anticipates that it will receive additional tax credits related to the Federal Low Income Housing Tax Credit program in the amount of $248 thousand which are expected to be realized over the next 4 years. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per Share The table below presents the increase in average shares outstanding, using the treasury stock method, for the diluted earnings per share calculation for the years ended December 31st: 2018 2017 2016 Basic weighted average common shares outstanding 11,679,520 11,568,430 10,966,333 Dilutive shares 70,942 83,333 73,178 Diluted weighted average common shares outstanding 11,750,462 11,651,763 11,039,511 Basic and diluted weighted average common shares outstanding for the years ended December 31, 2018 and 2017 include the full impact of the 930,232 shares of common stock issued in the 2016 Offering, while the respective 2016 weighted averages were only affected by the 2016 Offering from the issue date of June 23, 2016 through period end. There were 29,260 options outstanding at December 31, 2018 that were determined to be anti-dilutive and therefore excluded from the calculation of dilutive shares for the year ended December 31, 2018 . These options, which were not dilutive at that date, may potentially dilute earnings per share in the future. See Note 10, "Stockholders' Equity," under the caption "Shares authorized and share issuance," for information regarding the Company's participating securities and see Item (s), "Earnings per Share," contained in Note 1, "Summary of Significant Accounting Policies," for additional information regarding the earnings per share calculation. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The FASB defines the fair value of an asset or liability to be the price which a seller would receive in an orderly transaction between market participants (an exit price) and also establishes a fair value hierarchy segregating fair value measurements using three levels of inputs: (Level 1) quoted market prices in active markets for identical assets or liabilities; (Level 2) significant other observable inputs, including quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs such as interest rates and yield curves, volatilities, prepayment speeds, credit risks and default rates which provide a reasonable basis for fair value determination or inputs derived principally from observed market data; and (Level 3) significant unobservable inputs for situations in which there is little, if any, market activity for the asset or liability. Unobservable inputs must reflect reasonable assumptions that market participants would use in pricing the asset or liability, which are developed based on of the best information available under the circumstances. The following tables summarize significant assets and liabilities carried at fair value and placement in the fair value hierarchy at the dates specified: December 31, 2018 Fair Value Measurements using: (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Assets measured on a recurring basis: Debt securities $ 431,473 $ — $ 431,473 $ — Equity securities 1,448 1,448 — — FHLB stock 5,357 — — 5,357 Interest-rate swaps 723 — 723 — Assets measured on a non-recurring basis: Impaired loans (collateral dependent) 2,574 — — 2,574 Liabilities measured on a recurring basis: Interest-rate swaps $ 723 $ — $ 723 $ — December 31, 2017 Fair Value Measurements using: (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Assets measured on a recurring basis: Debt securities $ 405,206 $ — $ 405,206 $ — FHLB stock 5,215 — — 5,215 Interest-rate swaps 568 — 568 — Assets measured on a non-recurring basis: Impaired loans (collateral dependent) 2,696 — — 2,696 Liabilities measured on a recurring basis: Interest-rate swaps $ 568 $ — $ 568 $ — The Company did not transfer any assets between the fair value measurement levels during the years ended December 31, 2018 or December 31, 2017 . All of the Company's debt securities are considered "available-for-sale" and are carried at fair value. The debt security category above includes federal agency obligations, commercial and residential federal agency MBS, municipal securities, corporate bonds, and CDs, as held at those dates. The Company utilizes third-party pricing vendors to provide valuations on its debt securities. Fair values provided by the vendors were generally determined based upon pricing matrices utilizing observable market data inputs for similar or benchmark securities 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. Therefore, 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." The Company periodically obtains a second price from an impartial third-party on debt securities to assess the reasonableness of prices provided by the primary independent pricing vendor. The Company's equity portfolio fair value is measured based on quoted market prices for the shares; therefore, these securities are categorized as Level 1 within the fair value hierarchy. As of December 31, 2017 , the Company did not hold any equity securities, except for restricted FHLB stock discussed below. The Bank is required to purchase FHLB stock at par value in association with advances from the FHLB. This stock is classified as a restricted investment and carried at cost which management believes approximates fair value; therefore, these securities are categorized as Level 3 measures. See Note 1, "Summary of Significant Accounting Policies," Item (d), "Restricted Cash and Investments," to the Company's consolidated financial statements, contained above for further information regarding the Company's fair value assessment of FHLB capital stock. Impaired loan balances in the table above represent those collateral dependent impaired commercial loans where management has estimated the probable credit loss by comparing the loan's carrying value against the expected realizable fair value of the collateral (appraised value, or internal analysis less estimated cost to sell, adjusted as necessary for changes in relevant valuation factors subsequent to the measurement date). Certain inputs used in these assessments, and possible subsequent adjustments, are not always observable, and therefore, collateral dependent impaired loans are categorized as Level 3 within the fair value hierarchy. A specific allowance is assigned to the collateral dependent impaired loan for the amount of management's estimated probable credit loss. The specific allowances assigned to the collateral dependent impaired loans amounted to $1.6 million at December 31, 2018 compared to $872 thousand at December 31, 2017 . The fair values for the interest-rate swap assets and liabilities represent a FASB Level 2 measurement and are based on settlement values adjusted for credit risks and observable market interest-rate curves. The settlement values are based on discounted cash flow analysis, a widely accepted valuation technique, reflecting the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest-rate curves. Credit risk adjustments consider factors such as the likelihood of default by the Company and its counterparties, its net exposures and remaining contractual life. The change in value of interest-rate swap assets and liabilities attributable to credit risk was not significant during the reported periods. Refer also to Note 8, "Derivatives and Hedging Activities," for additional information on the Company's interest-rate swaps. Letters of credit are conditional commitments issued by the Company to guarantee the financial obligation or performance of a customer to a third party. The fair value of these commitments was estimated to be the fees charged to enter into similar agreements, and accordingly these fair value measures are deemed to be FASB Level 2 measurements. In accordance with the FASB, the estimated fair values of these commitments are carried on the consolidated balance sheet as a liability and amortized to income over the life of the letters of credit, which are typically one year. The estimated fair value of these commitments carried on the consolidated balance sheet at December 31, 2018 and December 31, 2017 were deemed immaterial. Interest-rate lock commitments related to the origination of mortgage loans that will be sold are considered derivative instruments. The commitments to sell loans are also considered derivative instruments. The Company generally does not pool mortgage loans for sale, but instead sells the loans on an individual basis. To reduce the net interest rate exposure arising from its loan sale activity, the Company enters into the commitment to sell these loans at essentially the same time that the interest-rate lock commitment is quoted on the origination of the loan. The Company estimates the fair value of these derivatives based on current secondary mortgage market prices. These commitments are accounted for in accordance with FASB guidance. The fair values of the Company's derivative instruments are deemed to be FASB Level 2 measurements. At December 31, 2018 and December 31, 2017 , the estimated fair value of the Company's interest-rate lock commitments and commitments to sell these mortgage loans were deemed immaterial. The following table presents additional quantitative information about assets measured at fair value on a recurring and non-recurring basis for which the Company utilized Level 3 inputs (significant unobservable inputs for situations in which there is little, if any, market activity for the asset or liability) to determine fair value as of December 31, 2018 and December 31, 2017 : Fair Value (Dollars in thousands) December 31, 2018 December 31, 2017 Valuation Technique Unobservable Input Unobservable Input Value or Range Assets measured on a recurring basis: FHLB stock $5,357 $ 5,215 FHLB Stated Par Value N/A N/A Assets measured on a non-recurring basis: Impaired loans (collateral dependent) $2,574 $ 2,696 Appraisal of Collateral Appraisal adjustments (1) 5% - 50% (1) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. Estimated Fair Values of Assets and Liabilities In addition to disclosures regarding the measurement of assets and liabilities carried at fair value on the consolidated balance sheet, the Company is also required to disclose fair value information about financial instruments for which it is practicable to estimate that value, whether or not recognized on the consolidated balance sheet. The carrying values, estimated fair values and placement in the fair value hierarchy of the Company's consolidated financial instruments for which fair value is only disclosed but not recognized on the consolidated balance sheet at the dates indicated are summarized as follows: December 31, 2018 Fair value measurement (Dollars in thousands) Carrying Amount Fair Value Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial assets: Loans held for sale $ 701 $ 710 $ — $ 710 $ — Loans, net 2,353,657 2,331,076 — — 2,331,076 Financial liabilities: CDs (including brokered) 341,014 339,308 — 339,308 — Borrowed funds 100,492 100,312 — 100,312 — Subordinated debt 14,860 14,300 — — 14,300 December 31, 2017 Fair value measurement (Dollars in thousands) Carrying Amount Fair Value Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial assets: Loans held for sale $ 208 $ 208 $ — $ 208 $ — Loans, net 2,236,989 2,236,169 — — 2,236,169 Financial liabilities: CDs (including brokered) 343,089 341,765 — 341,765 — Borrowed funds 89,000 88,996 — 88,996 — Subordinated debt 14,847 14,208 — — 14,208 Excluded from the tables above are certain financial instruments with carrying values that approximated their fair value at the dates indicated, as they were short-term in nature or payable on demand. These include cash and cash equivalents and non-term deposit accounts. The respective carrying values of these instruments would all be classified within Level 1 of their fair value hierarchy. Also excluded from these tables are the fair values of commitments for unused portions of lines of credit and commitments to originate loans that were short-term, at current market rates and estimated to have no significant change in fair value. |
Parent Company Only Financial S
Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Financial Statements | Parent Company Only Financial Statements Balance Sheets December 31, (Dollars in thousands) 2018 2017 Assets Cash $ 123 $ 345 Investment in subsidiaries 269,917 245,982 Other assets 198 411 Total assets $ 270,238 $ 246,738 Liabilities and Stockholders' Equity Liabilities Subordinated debt $ 14,860 $ 14,847 Accrued interest payable 78 78 Other liabilities 3 3 Total liabilities 14,941 14,928 Stockholders' equity: Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued — — Common stock $0.01 par value per share; 40,000,000 shares authorized; 11,708,218 shares issued and outstanding at December 31, 2018 and 11,609,853 shares issued and outstanding at December 31, 2017 117 116 Additional paid-in capital 91,281 88,205 Retained earnings 165,183 143,073 Accumulated other comprehensive (loss) income (1,284 ) 416 Total stockholders' equity 255,297 231,810 Total liabilities and stockholders' equity $ 270,238 $ 246,738 Statements of Income For the years ended December 31, (Dollars in thousands) 2018 2017 2016 Equity in undistributed net income of subsidiaries $ 25,635 $ 16,922 $ 19,313 Dividends distributed by subsidiaries 4,100 3,000 150 Total income 29,735 19,922 19,463 Interest expense 925 925 928 Other operating expenses 216 245 194 Total operating expenses 1,141 1,170 1,122 Income before income taxes 28,594 18,752 18,341 Benefit from income taxes (287 ) (641 ) (410 ) Net income $ 28,881 $ 19,393 $ 18,751 Parent Company Only Financial Statements Statements of Cash Flows For the years ended December 31, (Dollars in thousands) 2018 2017 2016 Cash flows from operating activities: Net income $ 28,881 $ 19,393 $ 18,751 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of subsidiaries (25,635 ) (16,922 ) (19,313 ) Payment from subsidiary bank for stock compensation expense 1,879 1,758 2,348 Changes in: Decrease (increase) in other assets 213 832 (697 ) Decrease in other liabilities 13 14 9 Net cash provided by operating activities 5,351 5,075 1,098 Cash flows from investing activities: Investment in subsidiary (1) — — (19,730 ) Net cash provided by investing activities — — (19,730 ) Cash flows from financing activities: Cash dividends paid (6,771 ) (6,241 ) (5,684 ) Proceeds from issuance of common stock, net of expenses 1,449 1,590 21,183 Net settlement for employee tax withholdings on restricted stock and options (559 ) (931 ) (442 ) Proceeds from exercise of stock options 308 355 546 Tax benefit from stock-based compensation — — 789 Net cash (used in) provided by financing activities (5,573 ) (5,227 ) 16,392 Net decrease in cash and cash equivalents (222 ) (152 ) (2,240 ) Cash and cash equivalents, beginning of year 345 497 2,737 Cash and cash equivalents, end of year $ 123 $ 345 $ 497 (1) The outflow in investment in subsidiary in 2016 reflects the Company's investment in the Bank from the Offering. See Note 10 "Stockholders' Equity," above, for further information. The Parent Company's Statements of Comprehensive Income and Statements of Changes in Stockholders' Equity are identical to the Consolidated Statements of Comprehensive Income and the Consolidated Statements of Changes in Stockholders' Equity and therefore are not presented here. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited) 2018 (Dollars in thousands, except share data) First Quarter Second Quarter Third Quarter Fourth Quarter Interest and dividend income $ 28,771 $ 30,320 $ 31,348 $ 32,464 Interest expense 2,756 3,102 3,936 4,274 Net interest income 26,015 27,218 27,412 28,190 Provision for loan losses 1,600 300 750 (400 ) Net interest income after provision for loan losses 24,415 26,918 26,662 28,590 Non-interest income 3,790 3,733 3,758 3,659 Net gains (losses) on sales of investment securities 1 — (34 ) (2,917 ) Non-interest expense 19,447 20,808 19,975 20,648 Income before income taxes 8,759 9,843 10,411 8,684 Provision for income taxes 1,934 2,269 2,429 2,184 Net income $ 6,825 $ 7,574 $ 7,982 $ 6,500 Basic earnings per share $ 0.59 $ 0.65 $ 0.68 $ 0.56 Diluted earnings per share $ 0.58 $ 0.64 $ 0.68 $ 0.55 2017 (Dollars in thousands, except share data) First Quarter Second Quarter Third Quarter Fourth Quarter Interest and dividend income $ 24,364 $ 25,338 $ 27,045 $ 28,285 Interest expense 1,517 1,803 1,911 2,279 Net interest income 22,847 23,535 25,134 26,006 Provision for loan losses 125 280 1,225 (200 ) Net interest income after provision for loan losses 22,722 23,255 23,909 26,206 Non-interest income 3,594 3,710 3,728 3,926 Net gains (losses) on sales of investment securities 540 229 (284 ) 231 Non-interest expense 19,420 18,754 18,833 19,138 Income before income taxes 7,436 8,440 8,520 11,225 Provision for income taxes 1,864 2,845 3,014 8,505 Net income $ 5,572 $ 5,595 $ 5,506 $ 2,720 Basic earnings per share $ 0.48 $ 0.48 $ 0.48 $ 0.23 Diluted earnings per share $ 0.48 $ 0.48 $ 0.47 $ 0.23 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The accompanying consolidated financial statements of Enterprise Bancorp, Inc. (the "Company," "Enterprise," "we," or "our"), a Massachusetts corporation, include the accounts of the Company and its wholly owned subsidiary, Enterprise Bank and Trust Company, commonly referred to as Enterprise Bank (the "Bank"). The Bank is a Massachusetts trust company and state chartered commercial bank organized in 1989. Substantially all of the Company's operations are conducted through the Bank and its subsidiaries. The Bank's subsidiaries include Enterprise Insurance Services, LLC and Enterprise Wealth Services, LLC, organized under the laws of the State of Delaware for the purposes of engaging in insurance sales activities and offering non-deposit investment products and services, respectively. In addition, the Bank has the following subsidiaries that are incorporated in the Commonwealth of Massachusetts and classified as security corporations in accordance with applicable Massachusetts General Laws: Enterprise Security Corporation; Enterprise Security Corporation II; and Enterprise Security Corporation III. The security corporations, which hold various types of qualifying securities, are limited to conducting securities investment activities that the Bank itself would be allowed to conduct under applicable laws. The Company's headquarters and the Bank's main office are located at 222 Merrimack Street in Lowell, Massachusetts. At December 31, 2018 , the Company had 24 full service branch banking offices serving the Greater Merrimack Valley, Nashoba Valley and North Central regions of Massachusetts and Southern New Hampshire (Southern Hillsborough and Rockingham counties). Through the Bank and its subsidiaries, the Company offers a range of commercial, residential and consumer loan products, deposit products and cash management services, electronic and digital banking options, and insurance services. The Company also provides a range of wealth management, wealth services and trust services delivered via two channels, Enterprise Wealth Management and Enterprise Wealth Services. The services offered through the Bank and its subsidiaries are managed as one strategic unit and represent the Company's only reportable operating segment. The Federal Deposit Insurance Corporation (the "FDIC") and the Massachusetts Division of Banks (the "Division") have regulatory authority over the Bank. The Bank is also subject to certain regulatory requirements of the Board of Governors of the Federal Reserve System (the "Federal Reserve Board") and, with respect to its New Hampshire branch operations, the New Hampshire Banking Department. The business and operations of the Company are subject to the regulatory oversight of the Federal Reserve Board. The Division also retains supervisory jurisdiction over the Company. |
Basis of Accounting | The accompanying audited consolidated financial statements and notes thereto have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and the instructions for SEC Form 10-K through the rules and interpretive releases of the SEC under federal securities law. In the opinion of management, the accompanying audited consolidated financial statements reflect all necessary adjustments consisting of normal recurring accruals for a fair presentation. All significant intercompany balances and transactions have been eliminated in the accompanying audited consolidated financial statements. |
Reclassifications | Certain previous years' amounts in the audited consolidated financial statements, and notes thereto, have been reclassified to conform to the current year's presentation. |
Subsequent Events | The Company has evaluated subsequent events and transactions from December 31, 2018 through the date this Annual Report on Form 10-K was filed with the SEC for potential recognition or disclosure as required by GAAP and determined that there were no material subsequent events requiring recognition or disclosure. |
Uses of Estimates | Uses of Estimates In preparing the consolidated financial statements in conformity with GAAP, management is required to exercise judgment in determining many of the methodologies, assumptions and estimates to be utilized. These assumptions and estimates affect the reported values of assets and liabilities as of the balance sheet dates and income and expenses for the years then ended. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates should the assumptions and estimates used be incorrect or change over time due to changes in circumstances. Changes in those estimates resulting from continuing changes in the economic environment and other factors will be reflected in the consolidated financial statements and results of operations in future periods. The three most significant areas in which management applies critical assumptions and estimates are the estimates of the allowance for loan losses, impairment review of investment securities and the impairment review of goodwill. |
Cash and Cash Equivalents | Cash and cash equivalents Cash equivalents are defined as highly liquid investments with original maturities of three months or less, that are readily convertible to known amounts of cash and present insignificant risk of changes in value due to changes in interest rates. The Company's cash and cash equivalents may be comprised of cash on hand and cash items due from banks, interest-earning deposits (deposit accounts, excess reserve cash balances, money markets, and money market mutual fund accounts) and federal funds ("fed funds") sold. Balances in cash and cash equivalents will fluctuate due primarily to the timing of net deposit flows, borrowing and loan inflows and outflows, investment purchases, maturities, calls and sales, and the immediate liquidity needs of the Company. |
Restricted cash and investments | Restricted Cash and Investments Certain of the Company's derivative agreements contain provisions for collateral to be posted if the derivative exposure exceeds a threshold amount. When the Company has pledged cash as collateral for this purpose, the cash is carried as restricted cash within cash and cash equivalents. See Note 8, "Derivatives and Hedging Activities," for more information about the Company's collateral related to its derivatives. The Bank is also required by the Federal Reserve Bank of Boston ("FRB") to maintain in reserves certain amounts of vault cash and/or deposits with the FRB. The average daily cash balance on hand for reserve requirements included in "Cash and Due from Banks" was approximately $9.0 million and $7.6 million , based on the two-week computation periods encompassing December 31, 2018 and 2017 , respectively. As a member of the FHLB, the Company is required to purchase certain levels of FHLB capital stock at par value in association with outstanding advances from the FHLB. From time-to-time, the FHLB may initiate the repurchase, at par value, of "excess" levels of its capital stock held by member banks. This stock is classified as a restricted investment and carried at cost, which management believes approximates fair value. FHLB stock represents the only restricted investment held by the Company. Management regularly reviews its holdings of FHLB stock for other-than-temporary impairment ("OTTI"). Based on management's periodic review, the Company has not recorded any OTTI charges on this investment to date. If it was determined that a write-down of FHLB stock was required, impairment would be recognized through a charge to earnings. See also Note 2, "Investment Securities," to the Company's consolidated financial statements, contained below, for additional information on management's OTTI review. |
Investments | Investments Investments in debt securities that are intended to be held for indefinite periods of time, but which may not be held to maturity or on a long-term basis are considered to be "available-for-sale" and are carried at fair value. Net unrealized appreciation and depreciation on investments available-for-sale, net of applicable income taxes, are reflected as a component of accumulated other comprehensive income (loss). Included as available-for-sale are debt securities that are purchased in connection with the Company's asset-liability risk management strategy and that may be sold in response to changes in interest rates, resultant prepayment risk and other related factors. In instances where the Company has the positive intent to hold debt securities to maturity, these securities will be classified as held-to-maturity and carried at amortized cost. As of the balance sheet dates, all of the Company's debt securities were classified as available-for-sale and carried at fair value. There are inherent risks associated with the Company's investment activities that could adversely impact the fair value and the ultimate collectability of the Company's investments. Management regularly reviews the debt portfolio for securities with unrealized losses to determine if any of the unrealized losses are OTTI. The determination of OTTI involves a high degree of judgment. While management uses available information to measure OTTI at the balance sheet date, future write-downs may be necessary based on extended duration of current unrealized losses, changing market conditions, or circumstances surrounding individual issuers. If a debt investment is deemed to have an unrealized loss that is OTTI, the Company is required to write-down the investment. For debt securities, OTTI is generally recognized through a charge to earnings as of the balance sheet date, while non-OTTI unrealized losses are recognized in other comprehensive income. Unrealized losses on debt securities are deemed OTTI if 1) the Company intends to sell the security, 2) it is more likely than not that the Company will be required to sell the security before recovery, or 3) a credit loss exists and the Company does not expect to recover the entire amortized cost. For debt securities that have a credit loss, any portion of the loss related to other factors is recorded in other comprehensive income. Once written-down, the previous charge on debt securities may not be recovered through earnings until sale or maturity, if in excess of its new cost basis. Any OTTI charges, depending upon the magnitude of the charges, could have a material adverse effect on the Company's financial condition and results of operations. See also Note 2, "Investment Securities," to the Company's consolidated financial statements below, for further information on management's OTTI assessment. At December 31, 2018 , the Company's equity securities were carried at carried at fair value, with changes in fair value recognized in net income. See "Accounting pronouncements adopted by the Company" contained in Item (u), "Recent Accounting Pronouncements," below in this Note 1 for treatment of unrealized losses on equities. Investment securities' discounts are accreted and premiums are amortized over the period of estimated principal repayment using methods that approximate the interest method. Gains or losses on the sale of investment securities are recognized on the trade date on a specific identification basis. |
Loans Held for Sale | Loans Held for Sale Depending on the current interest-rate environment, management projections of future interest rates and the overall asset-liability management program of the Company, management may elect to sell those fixed and adjustable rate residential mortgage loans which are eligible for sale in the secondary market or hold some or all of this residential loan production for the Company's portfolio. Mortgage loans are generally not pooled for sale, but instead sold on an individual basis. Enterprise may retain or sell the servicing when selling the loans. Loans sold are subject to standard secondary market underwriting and eligibility representations and warranties over the life of the loan and are subject to an early payment default period covering the first four payments for certain loan sales. Loans held for sale are carried at the lower of aggregate amortized cost or fair value. Fair value is based on comparable market prices for loans with similar rates and terms. When loans are sold, a gain or loss is recognized to the extent that the sales proceeds plus unamortized fees and costs exceed, or are less than, the carrying value of the loans. Gains and losses are determined using the specific identification method. |
Loans | Loans Loans made by the Company to businesses, non-profits and professional practices include commercial real estate mortgage loans, construction and land development loans, secured and unsecured commercial loans and lines of credit, and letters of credit. The Company also originates equipment lease financing for businesses. Loans made to individuals include conventional residential mortgage loans, home equity loans and lines, residential construction loans on owner-occupied primary and secondary residences, and secured and unsecured personal loans and lines of credit. Most loans granted by the Company are collateralized by real estate or equipment and/or are guaranteed by the principals of the borrower. The ability and willingness of the single family residential and consumer borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity and real estate values within the borrowers’ geographic areas. The ability and willingness of commercial real estate, commercial and construction loan borrowers to honor their repayment commitments is generally dependent on the health of the real estate sector in the borrowers' geographic areas and the general economy, among other factors. Loans are reported at the principal amount outstanding, net of deferred origination fees and costs. The aggregate amounts of overdrawn deposit accounts are reclassified as loan balances. Loan origination fees received, offset by direct loan origination costs, are deferred and amortized using the straight line method over three to five years for lines of credit and demand notes or over the life of the related loans using the level-yield method for all other types of loans. When loans are paid off, the unamortized fees and costs are recognized as an adjustment to interest income. From time to time, the Company participates with other banks in the financing of certain commercial projects. In each case in which the Company participates in a loan, the rights and obligations of each participating bank are divided proportionately among the participating banks in an amount equal to their share of ownership and with equal priority among all banks. Each participation is governed by individual participation agreements executed by the lead bank and the participant at loan inception.When the participation qualifies as a sale under GAAP, the balances participated out to other institutions are not carried as assets on the Company's consolidated financial statements. The Company performs an independent credit analysis of each commitment and a review of the participating institution prior to participation in the loan, and an annual review thereafter of each participating institution. Loans originated by other banks in which the Company is the participating institution are carried in the loan portfolio at the Company's pro rata share of ownership. See also Note 3, "Loans," to the Company's consolidated financial statements, under "Loan Portfolio Classifications," for further information about the Company's participation loans. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is an estimate of probable credit risk inherent in the loan portfolio as of the specified balance sheet dates. The allowance for loan losses is established through a provision for loan losses, a direct charge to earnings. Loan losses are charged against the allowance when management believes that the collectability of the loan principal is unlikely. Recoveries on loans previously charged-off are credited to the allowance. The Company maintains the allowance at a level that it deems adequate to absorb all reasonably anticipated probable losses from specifically known and other credit risks associated with the portfolio. The Company uses a systematic methodology to measure the amount of estimated loan loss exposure inherent in the portfolio for purposes of establishing a sufficient allowance for loan losses. The methodology uses a two-tiered approach that makes use of specific reserves for loans individually evaluated and deemed impaired and general reserves for larger groups of homogeneous loans, which are collectively evaluated relying on a combination of qualitative and quantitative factors that may affect credit quality of the pool. On a quarterly basis, the Company prepares an estimate of the allowance necessary to cover estimated credit risk inherent in the portfolio as of the specified balance sheet dates. The adequacy of the allowance for loan losses is reviewed and evaluated on a regular basis by an internal management committee and the full Board. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company's allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on judgments different from those of management. See also Note 4, "Allowance for Loan Losses," to the Company's consolidated financial statements, contained below, for additional accounting policies related to non-accrual, impaired and troubled debt restructured loans and to the allowance for loan losses. |
Other Real Estate Owned | Other Real Estate Owned Real estate acquired by the Company through foreclosure proceedings or the acceptance of a deed in lieu of foreclosure is classified as other real estate owned ("OREO"). When property is acquired, it is recorded at estimated fair value of the property acquired, less estimated costs to sell, establishing a new cost basis. The estimated fair value is based on market appraisals and the Company’s internal analysis. Any loan balance in excess of the estimated realizable fair value on the date of transfer is charged to the allowance for loan losses on that date. All costs incurred thereafter in maintaining the property, as well as subsequent declines in fair value are charged to non-interest expense. |
Premises and Equipment | Premises and Equipment Land is carried at cost. All other premises and equipment costs are stated at cost less accumulated depreciation and amortization. Depreciation or amortization is computed on a straight-line basis over the lesser of the estimated useful lives of the asset or the respective lease term (with reasonably assured renewal options) for leasehold improvements generally as follows: Bank premises, land improvements, and leasehold improvements 10 to 39 years Computer software and equipment 3 to 5 years Furniture, fixtures and equipment 3 to 10 years |
Bank Owned Life Insurance | Bank Owned Life Insurance The Company has purchased bank-owned life insurance ("BOLI") on certain current and former senior and executive officers. The cash surrender value carried on the consolidated balance sheets at December 31, 2018 and December 31, 2017 , amounted to $30.1 million and $29.5 million , respectively. There are no associated surrender charges under the outstanding policies. |
Impairment of Long-Lived Assets Other than Goodwill | Impairment of Long-Lived Assets Other than Goodwill The Company reviews long-lived assets, including premises and equipment, for impairment on an ongoing basis or whenever events or changes in business circumstances indicate that the remaining useful life may warrant revision or that the carrying amount of the long-lived asset may not be fully recoverable. If impairment is determined to exist, any related impairment loss is recognized through a charge to earnings. Impairment losses on assets disposed of, if any, are based on the estimated proceeds to be received, less cost of disposal. |
Goodwill | Goodwill Goodwill carried on the Company's consolidated financial statements was $5.7 million at both December 31, 2018 and December 31, 2017 . This asset is related to the Company's acquisition of two branch offices in July 2000. In accordance with GAAP, the Company does not amortize goodwill and instead, at least annually, evaluates whether the carrying value of goodwill has become impaired. Impairment of the goodwill may occur when the estimated fair value of the Company is less than its recorded book value. A determination that goodwill has become impaired results in an immediate write-down of goodwill to its determined value with a resulting charge to operations. The annual impairment test begins with a qualitative assessment of whether it is "more likely than not" that the reporting unit's fair value is less than its carrying amount. The assessment is performed at the reporting unit level. If an entity concludes it is not "more likely than not" that the fair value of a reporting unit is less than its carrying amount, it need not perform a two-step impairment test. In the case of the Company, the services offered through the Bank and subsidiaries are managed as one strategic unit and represent the Company’s only reportable operating segment. Management's qualitative assessment takes into consideration macroeconomic conditions, industry and market considerations, cost or margin factors, financial performance and share price. Based on this assessment, the Company determined that it is not "more likely than not" that the Company's fair value is less than its carrying amount and therefore goodwill was determined not to be impaired at December 31, 2018 . If the Company's qualitative assessment concluded that it is "more likely than not" that the fair value of a reporting unit is less than its carrying amount, it must perform the two-step impairment test to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized, if any. The first step of the goodwill impairment test compares the estimated fair value of the reporting unit with its carrying amount, or the book value of the reporting unit, including goodwill. If the estimated fair value of the reporting unit equals or exceeds its book value, goodwill is considered not impaired, and the second step of the impairment test is unnecessary. The second step, if necessary, measures the amount of goodwill impairment loss to be recognized. The reporting unit must determine fair values for all assets and liabilities, excluding goodwill. The net of the assigned fair value of assets and liabilities is then compared to the book value of the reporting unit, and any excess book value becomes the implied fair value of goodwill. If the carrying amount of the goodwill exceeds the newly calculated implied fair value of that goodwill, an impairment loss is recognized in the amount required to write down the goodwill to the implied fair value. |
Investment Assets Under Management | Investment Assets Under Management Investment assets under management, consisting of assets managed through Enterprise Wealth Management and Enterprise Wealth Services and commercial sweep products, totaled $800.8 million and $845.0 million at December 31, 2018 and 2017 , respectively. Securities and other property held in a fiduciary or agency capacity are not included in the consolidated balance sheets because they are not assets of the Company. See Item (p), "Revenue Recognition-ASC Topic 606," below in this Note 1, for information on the Company's accounting policies for wealth management fees. |
Derivatives | Derivatives The Company recognizes all derivatives as either assets or liabilities on its consolidated balance sheet and measures those instruments at fair value. Interest-rate lock commitments related to the origination of mortgage loans that will be sold are considered derivative instruments. The commitments to sell loans are also considered derivative instruments. The Company generally does not pool mortgage loans for sale, but instead, sells the loans on an individual basis. To reduce the net interest rate exposure arising from its loan sale activity, the Company enters into the commitment to sell these loans at essentially the same time that the interest-rate lock commitment is quoted on the origination of the loan. The Company estimates the fair value of these derivatives based on current secondary mortgage market prices. At December 31, 2018 and 2017 , the estimated fair value of the Company's interest-rate lock commitments and commitments to sell these mortgage loans were deemed immaterial. The Company may use interest-rate-contract swaps as part of its interest-rate risk management strategy. Interest-rate- swap agreements are entered into as hedges against future interest-rate fluctuations on specifically identified assets or liabilities. The Company did not have derivative fair value hedges or derivative cash flow hedges at December 31, 2018 or 2017 . The Company has a "Back-to-Back Swap" program whereby the Bank enters into an interest-rate swap with a qualified commercial banking customer and simultaneously enters into an equal and opposite interest-rate swap with a swap counterparty. The customer interest-rate-swap agreement allows commercial banking customers to convert a floating-rate loan payment to a fixed-rate payment. The transaction structure effectively minimizes the Bank's net risk exposure resulting from such transactions. Customer-related credit risk is minimized by the cross collateralization of the loan and the interest-rate-swap agreement. Back-to-Back Swaps are not speculative but rather, result from a service the Company provides to certain customers. Back-to-Back Swaps do not meet hedge accounting requirements and therefore changes in the fair value of both the customer swaps and the counterparty swaps, which have an offsetting relationship, are recognized directly in earnings. See also Note 8, "Derivatives and Hedging Activities," to the Company's consolidated financial statements below, for more information about the Company's derivatives. |
Revenue Recognition | Revenue Recognition-ASC Topic 606 On January 1, 2018, the Company adopted Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers-Topic 606" ("ASC 606"). The core principles require an entity to recognize revenue to depict the transfer of goods and services to customers as performance obligations are satisfied. While the majority of the Company’s revenue is generated from contracts with customers, our primary sources of revenue, interest and dividend income (primarily loan interest income), are outside of the scope of ASC 606 and accounted for under other ASC topics. Management did not identify any material changes needed in either our process of recording revenue or any material income statement reclassifications necessary, upon the adoption of the new revenue recognition standard (ASC 606). The primary areas of income, which are also the first two lines of non-interest income on the Company's Consolidated Statements of Income, are within the scope of ASC 606 and are discussed below. Wealth management fees consist of income generated through Enterprise Wealth Management and Enterprise Wealth Services. Enterprise Wealth Management income is primarily generated by managing customers' financial assets. Revenue is recognized as our performance obligation is completed each month. Enterprise Wealth Services revenue is generated through a third-party arrangement to refer, manage and service customers. For new sales and referrals along with transactional type charges, the performance obligation is based on a point in time and the payment is received and revenue is recognized in the same month as the revenue generating activity. For managing and servicing customers, revenue is recognized when our performance obligation is completed each month. Deposit and interchange fees are comprised of deposit account related charges and income generated from electronic payment interchanges. Deposit account charges consist of certain transactional analysis fees net of earning balance credits, monthly account service fees, and transactional fees such as overdraft fees. Analysis and monthly services fees are recognized over the period the service is performed. For transactional fees, the performance obligation and the revenue is recognized at a point of time and payment is typically received as the service is rendered. Interchange income is generated primarily from retail debit card transactions processed through the card payment network. The performance obligation and the revenue are recognized when the service is performed. The following non-interest income components are not subject to ASC 606: income on bank-owned life insurance ("BOLI"), net gains on sales of investment securities, and net gains on sales of loans, and are covered under other ASC topics. The remaining revenue items in non-interest income are not material. See Item (e), "Investments," Item (f), "Loans Held for Sale," and Item (g), "Loans," above in this Item 1 for additional accounting policies on revenue recognition related to income generated on investments, gains and losses on debt security sales, net gains on loans held for sale, and loans. |
Stock Based Compensation | Stock-Based Compensation The Company's consolidated financial statements include stock-based compensation expense for the portion of stock option awards and stock awards for which the requisite service has been rendered during the period. The compensation expense has been recorded based on the estimated grant-date fair value of the stock option awards, or in the case of stock awards, the market value of the common stock on the date of grant. Prior to the adoption of ASU 2016-09 "Compensation - Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting," in January 2017, forfeitures were estimated and netted against the expense. Upon adoption of this ASU, expense adjustments are made for actual forfeitures as they occur. See Note 12, "Stock-Based Compensation," for further information on the Company's stock-based compensation, including recording excess tax benefits and deficiencies. The Company will recognize the remaining estimated compensation expense for the portion of outstanding awards and compensation expense for any future awards, net of actual forfeitures, as the requisite service is rendered (i.e., on a straight-line basis over the remaining vesting period of each award) or as performance objectives are met. Stock awards that do not require future service ("vested awards") will be expensed immediately. Stock-based compensation also includes Director stock compensation for stock awards and stock in lieu of cash fees, both included in other operating expenses, described in more detail in Note 12, "Stock-Based Compensation." |
Income Taxes | Income Taxes The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and in the states of Massachusetts and New Hampshire within the directives of the respective enacted tax legislation. The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax expense or benefit attributable to differences between the financial statement carrying amounts and the tax basis of assets and liabilities. The deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities will be adjusted accordingly through the provision for income taxes in the period that includes the enactment date. The Company's policy is to classify interest resulting from underpayment of income taxes as income tax expense in the first period the interest would begin accruing according to the provisions of the relevant tax law. The Company classifies penalties resulting from underpayment of income taxes as income tax expense in the period for which the Company claims or expects to claim an uncertain tax position or in the period in which the Company’s judgment changes regarding an uncertain tax position. The income tax provisions will differ from the expense that would result from applying the federal statutory rate to income before taxes, due primarily to the impact of state tax expense, tax-exempt interest from certain investment securities, loans and BOLI and tax benefits from equity compensation deductions. The Company did not have any unrecognized tax benefits accrued as income tax liabilities or receivables or as deferred tax items at December 31, 2018 or December 31, 2017 . The Company is subject to U.S. federal and state income tax examinations by taxing authorities for the 2015 through 2018 tax years. See also Note 13, "Income Taxes," to the Company's consolidated financial statements, contained below, for further information about the Company's income taxes and deferred tax assets, including the impact of the Tax Cuts and Jobs Acts (the "2017 Tax Act"). |
Earnings Per Share | Earnings per Share Basic earnings per share are calculated by dividing net income available to common stockholders by the weighted average number of common shares outstanding (including participating securities) during the year. The Company's only participating securities are unvested restricted stock awards that contain non-forfeitable rights to dividends. Diluted earnings per share reflects the effect on weighted average shares outstanding of the number of additional shares outstanding if dilutive stock options were converted into common stock using the treasury stock method. |
Reporting Comprehensive Income | Reporting Comprehensive Income Comprehensive income is defined as all changes to stockholder's equity except investments by and distributions to stockholders. Net income is one component of comprehensive income, with other components referred to in the aggregate as other comprehensive income. The Company's only other comprehensive income component is the net unrealized holding gains or losses on investments available-for-sale, net of deferred income taxes. Pursuant to GAAP, the Company initially excludes these unrealized holding gains and losses from net income; however, they are later reported as reclassifications out of accumulated other comprehensive income into net income when the securities are sold. When debt securities are sold, the reclassification of realized gains and losses on available-for-sale securities are included on the Consolidated Statements of Income under the "non-interest income" subheading on the line item "net gains on sales of investment securities" and the related income tax expense is included in the line item "provision for income taxes," both of which are also detailed on the Consolidated Statements of Comprehensive Income under the subheading "reclassification adjustment for net gains included in net income." |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting pronouncements adopted by the Company In May 2014, the Financial Accounting Standards Board ("FASB") issued 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 the first quarter of 2018, the Company adopted ASU 2014-09. Because the largest portion of the Company's revenue, interest and dividend income, is specifically excluded from the scope of this ASU, and because the Company recognizes the majority of the remaining revenue sources in a manner that is consistent with this ASU, the adoption of this standard in the first quarter of 2018 did not materially impact the Company's consolidated financial statements, results of operations or disclosures. See Item (p), "Revenue Recognition-ASC Topic 606," above in this Note 1, for further information regarding the Company's revenue policies. In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," which updates certain aspects of recognition, measurement, presentation and disclosure of financial instruments. Among other things, ASU No. 2016-01: • Requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; • Requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; and • Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements. Because the Company's did not have any equity securities on January 1, 2018, the adoption of this ASU by the Company in the first quarter of 2018 did not have a material impact on the Company's consolidated financial statements, results of operations or disclosures. For the year ended December 31, 2018 , the Company's net fair value loss on equity securities recognized on the Consolidated Statements of Income was $204 thousand . The fair value changes of equity securities that will be recognized in net income in the future will depend on the amount of dollars invested and the magnitude of changes in equity fair values. See also Note 2, "Investment Securities," and Note 15, "Fair Value Measurements," to the Company's consolidated financial statements, contained below, for further information regarding the Company's recognition and measurement of financial assets and liabilities. In August 2016, the FASB issued ASU No. 2016-15, "Statement of Cash flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments." The amendments in this update are intended to reduce diversity in practice related to the presentation of eight specific cash flow issues. Because this amendment primarily impacts the presentation and classification of information, this ASU did not materially impact the Company's consolidated financial statements and results of operations upon adoption in the first quarter of 2018. In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows-Restricted Cash (Topic 230)." The amendments in this update clarify the inclusion of restricted cash in the cash and cash equivalents beginning-of-period and end-of period reconciliation on the statement of cash flows. Because this amendment primarily impacts the presentation and classification of information, this ASU did not have a material impact on the Company's consolidated financial statements and results of operations upon adoption in the first quarter of 2018. See also Item (d), "Restricted Cash and Investments," above for further information regarding the Company's restricted cash. In March 2017, the FASB issued ASU No. 2017-07, "Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The amendments in this update outline the presentation, classification and disclosure requirements for service cost and other components of net benefit costs. Because this amendment primarily impacts the presentation and classification of information, the adoption of this ASU in the first quarter of 2018 did not have a material impact on the Company's consolidated financial statements and results of operations. See also Note 11, "Employee Benefit Plans," to the Company's consolidated financial statements, contained below, for further information regarding the Company's compensation retirement benefits. In May 2017, the FASB issued ASU No. 2017-09, "Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting." The amendments in this update apply to entities that change the terms of an outstanding share-based payment award. The amendments are intended to reduce diversity in practice as well as cost and complexity when applying guidance in Topic 718 to the modification of the terms and conditions of a share-based payment award. This ASU provides guidance on the three modifications to share-based payment awards and conditions that must be met in order to exempt an entity from modification accounting under topic 718. The adoption of this ASU in the first quarter of 2018 did not have an impact on the Company's consolidated financial statements, results of operations or disclosures because to date the Company has not made any such modifications. See also Note 12, "Stock-Based Compensation," to the Company's consolidated financial statements, contained below, for further information regarding the Company's stock compensation Accounting pronouncements not yet adopted by the Company (in order of effective date of implementation) In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)," which supersedes previous leasing guidance in Topic 840. Under the new guidance, lessees are required to recognize lease (right-of use or "ROU") assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The FASB has since issued additional related ASU amendments intended to clarify and improve certain aspects of the guidance and implementation of Topic 842 but do not change the core principles of the guidance in Topic 842. The effective dates are the same as the effective date in Topic 842. In accordance with the guidance as amended, the Company may elect to apply the new standard at the adoption date (leases existing at, or entered into after January 1, 2019) and recognize a cumulative effect adjustment to retained earnings upon adoption, or use the modified retrospective transition approach which would require recording leases at the beginning of the earliest comparative period presented in the consolidated financial statements (January 1, 2017 for the Company), with certain practical expedients available. The Company has begun implementing this ASU and is applying the new lease standard on leases existing at January 1, 2019 rather than the earliest comparative period as allowable as noted above. Based on the Company's implementation process to date, the only significant implication of this ASU on the Company relates to operating leases of our facilities, mainly branch leases. The Company has estimated the lease liability and ROU asset on January 1, 2019 to be approximately $ 18.0 million and $19.0 million , respectively. Once this ASU is fully implemented, the balance sheet will reflect both lease liabilities and right-of-use assets. In addition, the Company will recognize lease expense, which approximates the amount recorded under current GAAP, in the income statement on a straight-line basis in the "Occupancy and Equipment Expenses" line item within the non-interest expense section of the income statement. The foregoing observations are subject to change as management completes the implementation of this ASU in the first quarter of 2019. In June 2018, the FASB issued ASU No. 2018-07, "Compensation-Stock-Based Compensation (Topic 718): Improvements to Nonemployee Shared-Based Payment Accounting." The amendments in the ASU expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees except for share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract. Additionally, Topic 718 has been updated for specific guidance on inputs to an option pricing model and the attribution of cost (that is, the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted. From time to time, the Company issues shares to community members for consulting on regional advisory councils. These shares vest immediately and the cost, which is based on the market price on the date of grant and deemed to be immaterial, is expensed in the period in which the services are rendered. The adoption of this standard in January 2019 did not have a material impact on the Company's consolidated financial statements, results of operations or disclosures. In August 2017, the FASB issued ASU No. 2017-12 "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." The objective of the ASU is to better align hedge accounting with an organization's risk management activities in the financial statements. In addition, the ASU simplifies the application of hedge accounting guidance in areas where practice issues exist. The amendments expand the strategies that qualify for hedge accounting, change how many hedging relationships are presented in the financial statements and simplify the application of hedge accounting in certain situations, reducing the operational complexities associated with certain existing strategies. New or modified disclosures are required, primarily for fair value and cash flow hedges. For public business entities, the ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company currently does not hold any instruments that meet hedge accounting requirements and therefore the adoption of this ASU, in January 2019, did not have an impact on the Company's financial statements, results of operations or disclosures, however, the Company may utilize hedging strategies in the future. In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." The amendments in this ASU require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. Previously, when credit losses were measured under GAAP, an entity generally only considered past events and current conditions in measuring the incurred loss and generally recognition of the full amount of credit losses was delayed until the loss was probable of occurring. The amendments in this ASU eliminate the probable initial recognition threshold in current GAAP and, instead, reflect an entity’s current estimate of all expected credit losses (commonly known as "CECL"). The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. Credit losses on available-for-sale debt securities should be measured in a manner similar to current GAAP. However, the amendments in this update require that credit losses be presented as an allowance rather than as a write-down. Unlike current GAAP, the ASU provides for reversals of credit losses in future period net income in situations where the estimate of loss declines. An entity will apply the amendments in this update through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). For public business entities that are SEC filers, such as the Company, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption for fiscal years beginning after December 15, 2018 is permitted. In April 2018, banking regulators issued a proposed revision to their capital rules that addresses the regulatory capital treatment of credit loss allowances under the CECL methodology and, if enacted as proposed, would allow banking organizations to phase in the day-one regulatory capital effects of CECL adoption over three years. The Company has established a project committee and an implementation plan for this ASU. The impact of the adoption of ASU No. 2016-13 on the Company's operations, financial results, disclosures, and controls is under evaluation. In January 2017, the FASB issued ASU No. 2017-04, "Intangibles-Goodwill and Other (Topic 350)-Simplifying the Test for Goodwill Impairment." The main provision in this ASU eliminated Step 2 of the goodwill impairment test and instead requires an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of the reporting unit with its carrying amount. An impairment charge would be recognized for the amount the carrying value exceeds the reporting unit's fair value as long as the amount recognized does not exceed the amount of goodwill allocated to the reporting unit. For public business entities that are SEC filers, such as the Company, the amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for impairment tests performed on testing dates after January 1, 2017. Goodwill carried on the Company's consolidated financial statements was $5.7 million at both December 31, 2018 and December 31, 2017. This asset is related to the Company's acquisition of two branch offices in July 2000. The Company does not expect the adoption of ASU No. 2017-04 to have a material impact on the Company's consolidated financial statements and results of operations. In August 2018, the FASB issued ASU No. 2018-13, "Fair Value Measurement (Topic 820-Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement." The amendments in this update modify the disclosure requirements primarily related to level 3 fair value measurements of the fair value hierarchy. This amendment is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. Because this ASU primarily relates to disclosure requirements, the Company does not expect the adoption of ASU No. 2018-13 to have a material impact on the Company's consolidated financial statements and results of operations. In August 2018, the FASB issued ASU No. 2018-15, "Intangibles-Goodwill and Other-Internal-use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract." The major provision in the amendments in this update require an entity to capitalize certain implementation costs incurred in a hosting arrangement that is a service contract in accordance with current GAAP for internal-use software and expense these costs over the term of the hosting arrangement. Additionally, these capitalized implementation costs are required to be reviewed for impairment in accordance with current GAAP for internal-use software. This amendment is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company does not expect the adoption of ASU No. 2018-15 to have a material impact on the Company's consolidated financial statements and results of operations. In August 2018, the FASB issued ASU No. 2018-14, "Compensation-Retirement Benefits-Defined Benefit Plans General (Subtopic 715-20)-Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans." The amendments in this update modify the disclosure requirements on defined benefit plans including requiring disclosures about significant gains and losses related to changes in the benefit obligation. This amendment is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. Because this ASU primarily relates to disclosure requirements and the balances of the benefit plans impacted by this ASU are immaterial to the Company, the adoption of ASU No. 2018-14 will not have a material impact on the Company's consolidated financial statements and results of operations. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment, Useful Lives | Depreciation or amortization is computed on a straight-line basis over the lesser of the estimated useful lives of the asset or the respective lease term (with reasonably assured renewal options) for leasehold improvements generally as follows: Bank premises, land improvements, and leasehold improvements 10 to 39 years Computer software and equipment 3 to 5 years Furniture, fixtures and equipment 3 to 10 years |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Debt Securities, Available-for-Sale, Investment Reconciliation | The amortized cost and fair values of debt securities at December 31, 2018 and 2017 are summarized as follows: 2018 (Dollars in thousands) Amortized cost Unrealized gains Unrealized losses Fair Value Federal agency obligations (1) $ 7,994 $ — $ 19 $ 7,975 Residential federal agency MBS (1) 174,701 633 2,608 172,726 Commercial federal agency MBS (1) 93,800 609 430 93,979 Municipal securities 141,747 1,122 826 142,043 Corporate bonds 13,967 24 185 13,806 CDs (2) 950 — 6 944 Total debt securities, at fair value $ 433,159 $ 2,388 $ 4,074 $ 431,473 2017 (Dollars in thousands) Amortized cost Unrealized gains Unrealized losses Fair Value Federal agency obligations (1) $ 51,769 $ 30 $ 82 $ 51,717 Residential federal agency MBS (1) 141,054 71 971 140,154 Commercial federal agency MBS (1) 66,777 9 286 66,500 Municipal securities 132,603 2,097 354 134,346 Corporate bonds 11,546 63 67 11,542 CDs (2) 950 — 3 947 Total debt securities, at fair value $ 404,699 $ 2,270 $ 1,763 $ 405,206 (1) These categories may include investments issued or guaranteed by government sponsored enterprises such as Fannie Mae ("FNMA"), Freddie Mac ("FHLMC"), Federal Farm Credit Bank ("FFCB"), or one of several Federal Home Loan Banks, as well as, investments guaranteed by Ginnie Mae ("GNMA"), a wholly-owned government entity. (2) CDs represent term deposits issued by banks that are subject to FDIC insurance and purchased on the open market. |
Schedule of Unrealized Loss on Debt Securities, Available-for-Sale Investments | The following tables summarize debt securities having temporary impairment, due to the fair values having declined below the amortized costs of the individual investments, and the period that the investments have been temporarily impaired at December 31, 2018 and 2017 : 2018 Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses # of holdings Federal agency obligations $ 997 $ 1 $ 6,978 $ 18 $ 7,975 $ 19 3 Residential federal agency MBS 26,147 597 81,158 2,011 107,305 2,608 25 Commercial federal agency MBS 3,258 11 18,717 419 21,975 430 9 Municipal securities 15,036 108 41,265 718 56,301 826 83 Corporate bonds 5,277 36 5,653 149 10,930 185 63 CDs — — 944 6 944 6 4 Total temporarily impaired debt securities $ 50,715 $ 753 $ 154,715 $ 3,321 $ 205,430 $ 4,074 187 2017 Less than 12 months 12 months or longer Total (Dollars in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses # of holdings Federal agency obligations $ 34,344 $ 82 $ — $ — $ 34,344 $ 82 9 Residential federal agency MBS 109,308 882 2,015 89 111,323 971 30 Commercial federal agency MBS 35,859 205 5,190 81 41,049 286 11 Municipal securities 16,983 129 10,210 225 27,193 354 50 Corporate bonds 2,802 23 2,913 44 5,715 67 33 CDs 947 3 — — 947 3 4 Total temporarily impaired debt securities $ 200,243 $ 1,324 $ 20,328 $ 439 $ 220,571 $ 1,763 137 |
Debt Securities, Available-for-Sale Investments Classified by Contractual Maturity Date | The contractual maturity distribution at December 31, 2018 of total debt securities was as follows: (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 13,678 $ 13,662 Due after one, but within five years 54,873 55,012 Due after five, but within ten years 160,316 160,735 Due after ten years 204,292 202,064 Total debt securities $ 433,159 $ 431,473 |
Schedule of Realized Gain (Loss) on Sales of Debt Securities, Available-for-Sale Investments | Sales of debt securities, including pending trades based on trade date, if applicable, for the years ended December 31, 2018 , 2017 , and 2016 are summarized as follows: (Dollars in thousands) 2018 2017 2016 Amortized cost of debt securities sold (1) $ 122,652 $ 133,812 $ 2,245 Gross realized gains on sales 4 38 53 Gross realized losses on sales (2,975 ) (2,588 ) (1 ) Total proceeds from sales of debt securities $ 119,681 $ 131,262 $ 2,297 (1) Amortized cost of investments sold is determined on a specific identification basis. |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Loans by Loan Classification | Major classifications of loans at the periods indicated were as follows: (Dollars in thousands) December 31, 2018 December 31, 2017 Commercial real estate $ 1,303,879 $ 1,201,351 Commercial and industrial 514,253 498,802 Commercial construction 234,430 274,905 Total commercial loans 2,052,562 1,975,058 Residential mortgages 231,501 195,492 Home equity loans and lines 96,116 91,706 Consumer 10,241 10,293 Total retail loans 337,858 297,491 Gross loans 2,390,420 2,272,549 Deferred loan origination fees, net (2,914 ) (2,645 ) Total loans 2,387,506 2,269,904 Allowance for loan losses (33,849 ) (32,915 ) Net loans $ 2,353,657 $ 2,236,989 |
Schedule of Loans Pledged as Collateral | Loans designated as qualified collateral and pledged to the FHLB for borrowing capacity for the periods indicated are summarized below: (Dollars in thousands) December 31, 2018 December 31, 2017 Commercial real estate $ 311,024 $ 224,703 Residential mortgages 220,815 187,524 Home equity 8,382 9,405 Total loans pledged to FHLB $ 540,221 $ 421,632 |
Allowance For Loan Losses (Tabl
Allowance For Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Financing Receivables by Evaluation Method | The balances of loans as of December 31, 2018 by portfolio classification and evaluation method are summarized as follows: (Dollars in thousands) Loans individually evaluated for impairment Loans collectively evaluated for impairment Gross Loans Commercial real estate $ 16,318 $ 1,287,561 $ 1,303,879 Commercial and industrial 12,053 502,200 514,253 Commercial construction 1,736 232,694 234,430 Residential mortgages 893 230,608 231,501 Home equity loans and lines 514 95,602 96,116 Consumer 16 10,225 10,241 Total gross loans $ 31,530 $ 2,358,890 $ 2,390,420 The balances of loans as of December 31, 2017 by portfolio classification and evaluation method are summarized as follows: (Dollars in thousands) Loans individually evaluated for impairment Loans collectively evaluated for impairment Gross Loans Commercial real estate $ 13,739 $ 1,187,612 $ 1,201,351 Commercial and industrial 10,096 488,706 498,802 Commercial construction 1,624 273,281 274,905 Residential mortgages 397 195,095 195,492 Home equity loans and lines 371 91,335 91,706 Consumer 35 10,258 10,293 Total gross loans $ 26,262 $ 2,246,287 $ 2,272,549 |
Financing Receivable Credit Quality Indicators | The following tables present the Company's credit risk profile for each portfolio classification by internally assigned adverse risk rating category as of the periods indicated: December 31, 2018 (Dollars in thousands) Adversely Classified Non-Adversely Classified Gross Loans Substandard Doubtful Loss Commercial real estate $ 17,714 $ 240 $ — $ 1,285,925 $ 1,303,879 Commercial and industrial 12,821 — — 501,432 514,253 Commercial construction 2,262 — — 232,168 234,430 Residential mortgages 1,820 — — 229,681 231,501 Home equity loans and lines 561 — — 95,555 96,116 Consumer 35 8 — 10,198 10,241 Total gross loans $ 35,213 $ 248 $ — $ 2,354,959 $ 2,390,420 December 31, 2017 (Dollars in thousands) Adversely Classified Non-Adversely Classified Gross Loans Substandard Doubtful Loss Commercial real estate $ 12,895 $ — $ — $ 1,188,456 $ 1,201,351 Commercial and industrial 9,915 48 1 488,838 498,802 Commercial construction 1,624 — — 273,281 274,905 Residential mortgages 1,355 — — 194,137 195,492 Home equity loans and lines 513 — — 91,193 91,706 Consumer 52 10 — 10,231 10,293 Total gross loans $ 26,354 $ 58 $ 1 $ 2,246,136 $ 2,272,549 |
Past Due Financing Receivables | The following tables present an age analysis of past due loans by portfolio classification as of the dates indicated: Balance at December 31, 2018 (Dollars in thousands) Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Total Past Due Loans Current Loans Gross Loans Non-accrual Loans Commercial real estate $ 7,596 $ 21 $ 3,821 $ 11,438 $ 1,292,441 $ 1,303,879 $ 6,894 Commercial and industrial 619 17 2,299 2,935 511,318 514,253 3,417 Commercial construction 4,319 — — 4,319 230,111 234,430 176 Residential mortgages 114 — 377 491 231,010 231,501 763 Home equity loans and lines 14 168 209 391 95,725 96,116 514 Consumer 23 31 6 60 10,181 10,241 20 Total gross loans $ 12,685 $ 237 $ 6,712 $ 19,634 $ 2,370,786 $ 2,390,420 $ 11,784 Balance at December 31, 2017 (Dollars in thousands) Past Due 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Total Past Due Loans Current Loans Gross Loans Non-accrual Loans Commercial real estate $ 4,200 $ 69 $ 3,569 $ 7,838 $ 1,193,513 $ 1,201,351 $ 6,751 Commercial and industrial 374 527 327 1,228 497,574 498,802 1,294 Commercial construction 2,526 518 — 3,044 271,861 274,905 193 Residential mortgages 1,931 93 89 2,113 193,379 195,492 262 Home equity loans and lines 491 120 12 623 91,083 91,706 463 Consumer 51 5 45 101 10,192 10,293 69 Total gross loans $ 9,573 $ 1,332 $ 4,042 $ 14,947 $ 2,257,602 $ 2,272,549 $ 9,032 |
Schedule of Interest Lost on Nonaccrual Loans | The reduction in interest income for the years ended December 31, associated with non-accruing loans is summarized as follows: (Dollars in thousands) 2018 2017 2016 Income that would have been recognized if non-accrual loans had been current $ 2,106 $ 1,906 $ 1,585 Less income recognized 833 990 722 Reduction in interest income $ 1,273 $ 916 $ 863 |
Impaired Financing Receivables | The following tables set forth the recorded investment in impaired loans and the related specific allowance allocated by portfolio classification as of the dates indicated: Balance at December 31, 2018 (Dollars in thousands) Unpaid contractual principal balance Total recorded investment in impaired loans Recorded investment with no allowance Recorded investment with allowance Related specific allowance Commercial real estate $ 17,140 $ 16,318 $ 15,948 $ 370 $ 55 Commercial and industrial 12,538 12,053 7,752 4,301 2,140 Commercial construction 1,804 1,736 1,736 — — Residential mortgages 970 893 473 420 13 Home equity loans and lines 685 514 514 — — Consumer 16 16 — 16 16 Total $ 33,153 $ 31,530 $ 26,423 $ 5,107 $ 2,224 Balance at December 31, 2017 (Dollars in thousands) Unpaid contractual principal balance Total recorded investment in impaired loans Recorded investment with no allowance Recorded investment with allowance Related specific allowance Commercial real estate $ 15,132 $ 13,739 $ 12,850 $ 889 $ 59 Commercial and industrial 10,458 10,096 7,053 3,043 1,284 Commercial construction 1,678 1,624 1,624 — — Residential mortgages 511 397 262 135 5 Home equity loans and lines 543 371 371 — — Consumer 36 35 — 35 35 Total $ 28,358 $ 26,262 $ 22,160 $ 4,102 $ 1,383 The following table presents the average recorded investment in impaired loans by portfolio classification and the related interest recognized during the year ends indicated: December 31, 2018 December 31, 2017 December 31, 2016 (Dollars in thousands) Average recorded investment Interest income recognized Average recorded investment Interest income (loss) recognized Average recorded investment Interest income recognized Commercial real estate $ 13,971 $ 385 $ 14,473 $ 363 $ 12,988 $ 332 Commercial and industrial 11,801 373 12,272 370 9,790 223 Commercial construction 1,691 93 1,818 92 3,137 150 Residential mortgages 644 — 320 2 301 — Home equity loans and lines 498 — 482 (1 ) 356 (4 ) Consumer 56 — 25 (1 ) 14 — Total $ 28,661 $ 851 $ 29,390 $ 825 $ 26,586 $ 701 |
Troubled Debt Restructurings on Financing Receivables | Payment defaults by portfolio classification, during the years ended, on loans modified as TDRs within the preceding twelve months are detailed below: December 31, 2018 December 31, 2017 (Dollars in thousands) Number of TDRs that defaulted Post-modification outstanding recorded investment Number of TDRs that defaulted Post-modification outstanding recorded investment Commercial real estate 1 $ 82 — $ — Commercial and industrial 3 273 2 20 Commercial construction — — — — Residential mortgages — — — — Home equity loans and lines 2 92 — — Consumer — — — — Total 6 $ 447 2 $ 20 The following table sets forth the post modification balances of TDRs listed by type of modification for TDRs that occurred during the periods indicated: December 31, 2018 December 31, 2017 (Dollars in thousands) Number of restructurings Amount Number of restructurings Amount Loan advances with adequate collateral 1 $ 240 — $ — Extended maturity date — $ — 1 $ 175 Temporary payment reduction and payment re-amortization of remaining principal over extended term 8 304 6 790 Temporary interest-only payment plan 3 2,349 4 191 Other payment concessions 4 469 — — Total 16 $ 3,362 11 $ 1,156 Amount of specific reserves included in the allowance for loan losses associated with TDRs listed above $ 425 $ 155 Loans modified as TDRs during the year by portfolio classification, are detailed below: December 31, 2018 December 31, 2017 (Dollars in thousands) Number of restructurings Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Number of restructurings Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Commercial real estate 4 $ 2,342 $ 2,349 3 $ 696 $ 674 Commercial and industrial 10 1,283 921 6 386 346 Commercial construction — — — — — — Residential mortgages — — — 1 136 135 Home equity loans and lines 2 112 92 — — — Consumer — — — 1 1 1 Total 16 $ 3,737 $ 3,362 11 $ 1,219 $ 1,156 |
Allowance for Credit Losses on Financing Receivables | Changes in the allowance for loan losses for the years ended December 31, are summarized as follows: (Dollars in thousands) 2018 2017 2016 Balance at beginning of year $ 32,915 $ 31,342 $ 29,008 Provision 2,250 1,430 2,993 Recoveries 431 755 709 Less: Charge-offs 1,747 612 1,368 Balance at end of year $ 33,849 $ 32,915 $ 31,342 Changes in the allowance for loan losses by portfolio classification for the year ended December 31, 2018 , are presented below: (Dollars in thousands) Cmml Real Estate Cmml and Industrial Cmml Constr Resid. Mortgage Home Equity Cnsmr Total Beginning Balance at December 31, 2017 $ 17,545 $ 9,669 $ 3,947 $ 904 $ 608 $ 242 $ 32,915 Provision 418 2,139 (640 ) 256 (34 ) 111 2,250 Recoveries 51 278 — — 55 47 431 Less: Charge-offs — 1,593 — — — 154 1,747 Ending Balance at December 31, 2018 $ 18,014 $ 10,493 $ 3,307 $ 1,160 $ 629 $ 246 $ 33,849 Ending allowance balance: Allocated to loans individually evaluated for impairment $ 55 $ 2,140 $ — $ 13 $ — $ 16 $ 2,224 Allocated to loans collectively evaluated for impairment $ 17,959 $ 8,353 $ 3,307 $ 1,147 $ 629 $ 230 $ 31,625 Changes in the allowance for loan losses by portfolio classification for the year ended December 31, 2017 , are presented below: (Dollars in thousands) Cmml Real Estate Cmml and Industrial Cmml Constr Resid. Mortgage Home Equity Cnsmr Total Beginning Balance at December 31, 2016 $ 14,902 $ 11,204 $ 3,406 $ 960 $ 634 $ 236 $ 31,342 Provision 2,628 (1,737 ) 541 (56 ) (30 ) 84 1,430 Recoveries 193 550 — — 4 8 755 Less: Charge-offs 178 348 — — — 86 612 Ending Balance at December 31, 2017 $ 17,545 $ 9,669 $ 3,947 $ 904 $ 608 $ 242 $ 32,915 Ending allowance balance: Allocated to loans individually evaluated for impairment $ 59 $ 1,284 $ — $ 5 $ — $ 35 $ 1,383 Allocated to loans collectively evaluated for impairment $ 17,486 $ 8,385 $ 3,947 $ 899 $ 608 $ 207 $ 31,532 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and equipment at December 31, are summarized as follows: (Dollars in thousands) 2018 2017 Land and land improvements $ 6,722 $ 5,962 Bank premises and leasehold improvements 42,658 42,051 Computer software and equipment 10,054 9,303 Furniture, fixtures and equipment 21,568 20,347 Total premises and equipment, before accumulated depreciation 81,002 77,663 Less accumulated depreciation (43,414 ) (40,641 ) Total premises and equipment, net of accumulated depreciation $ 37,588 $ 37,022 |
Schedule of Future Minimum Rental Payments for Operating Leases | At December 31, 2018 , minimum lease payments for these operating leases were as follows: (Dollars in thousands) Payable in: 2019 $ 1,200 2020 969 2021 950 2022 917 2023 848 Thereafter 6,384 Total minimum lease payments $ 11,268 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Schedule of Deposit Liabilities | Deposits at December 31, are summarized as follows: (Dollars in thousands) 2018 2017 Non-interest checking $ 765,029 $ 705,846 Interest-bearing checking 403,497 391,111 Savings 193,214 193,385 Money market 862,028 807,931 CDs $250,000 or less 215,200 150,445 CDs greater than $250,000 69,031 45,154 Total customer deposits 2,507,999 2,293,872 Brokered deposits (1) 56,783 147,490 Total deposits $ 2,564,782 $ 2,441,362 (1) Brokered CDs which are $250,000 and under. |
Schedule of Maturities of Time Deposits | The following table shows the scheduled maturities of CDs (including brokered CDs with weighted average remaining lives of less than six months at both December 31, 2018 and 2017 ): (Dollars in thousands) 2018 2017 Due in less than twelve months $ 223,611 $ 240,995 Due in over one year through two years 93,770 60,692 Due in over two years through three years 16,228 28,141 Due in over three years through four years 5,216 6,592 Due in over four years through five years 1,885 5,614 Due in over five years 304 1,055 Total CDs $ 341,014 $ 343,089 |
Borrowed Funds and Subordinat_2
Borrowed Funds and Subordinated Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowed Funds and Debentures | Borrowed funds and subordinated debt outstanding at December 31, for the years indicated are summarized as follows: 2018 2017 2016 (Dollars in thousands) Amount Average Rate Amount Average Rate Amount Average Rate Borrowed funds $ 100,492 2.67 % $ 89,000 1.54 % $ 10,671 0.80 % Subordinated debt 14,860 6.23 % 14,847 6.23 % 14,834 6.26 % Total borrowed funds and subordinated debt $ 115,352 3.13 % $ 103,847 2.21 % $ 25,505 3.98 % |
Schedule of Average Balances and Rates for Borrowed Funds | The following table summarizes the average balance and average cost of borrowed funds for the years indicated: Year ended December 31, 2018 2017 2016 (Dollars in thousands) Average Balance Average Cost Average Balance Average Cost Average Balance Average Cost FHLB advances $ 22,250 1.72 % $ 49,546 1.19 % $ 14,551 0.55 % Other borrowings — — — — 107 0.61 % Total borrowed funds $ 22,250 1.72 % $ 49,546 1.19 % $ 14,658 0.55 % |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives, Fair Value and Classification | The table below presents the fair value and classification of the Company's derivative financial instruments for the periods presented: As of December 31, 2018 As of December 31, 2017 (Dollars in thousands) Asset Derivatives Liability Derivatives Asset Derivatives Liability Derivatives Interest-rate contracts - pay floating, received fixed $ 45 $ 723 $ 25 $ 568 Interest-rate contracts - pay fixed, receive floating 678 — 543 — Total interest-rate swaps $ 723 $ 723 $ 568 $ 568 |
Schedule of Derivatives - Offsetting Assets and Liabilities | The tables below present the Company's asset derivative positions and the potential effect of those netting arrangements on its financial position, as of the periods presented. As noted above, interest-rate swaps with customers are not subject to master netting agreements and therefore are not included in the tables below. As of December 31, 2018 (Dollars in thousands) Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets Presented in the Statement of Financial Position Asset Derivatives Interest-rate contracts - pay fixed, receive floating $ 723 $ 45 $ 678 As of December 31, 2017 (Dollars in thousands) Gross Amounts of Recognized Assets Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets Presented in the Statement of Financial Position Asset Derivatives Interest-rate contracts - pay fixed, receive floating $ 568 $ 25 $ 543 |
Committments, Contingencies a_2
Committments, Contingencies and Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Financial Instruments with Off-Balance Sheet Risk | Financial instruments with off-balance sheet credit risk at December 31, 2018 and 2017 are as follows: (Dollars in thousands) 2018 2017 Commitments to originate loans $ 71,586 $ 13,830 Commitments to originate residential mortgages loans for sale — 2,078 Commitments to sell residential mortgage loans 701 2,286 Letters of credit 23,482 21,576 Unadvanced portions of commercial real estate loans 39,311 26,947 Unadvanced portions of commercial loans and lines 453,381 432,731 Unadvanced portions of construction loans (commercial & residential) 240,019 209,916 Unadvanced portions of home equity lines 100,227 94,012 Unadvanced portions of consumer loans 4,270 4,290 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | Management believes, as of December 31, 2018 , that the Company and the Bank met all capital adequacy requirements to which they were subject. As of December 31, 2018 and December 31, 2017 , the Company met the definition of "well-capitalized" under the applicable Federal Reserve Board regulations and the Bank qualified as "well-capitalized" under the prompt corrective action regulations of Basel III and the FDIC. The Company's and the Bank's actual capital amounts and ratios are presented as of December 31, 2018 and December 31, 2017 in the tables below: Actual Minimum Capital for Capital Adequacy Purposes (1) Minimum Capital To Be Well Capitalized (2) (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2018 The Company Total Capital (to risk weighted assets) $ 297,402 11.77 % $ 202,172 8.00 % N/A N/A Tier 1 Capital (to risk weighted assets) 250,925 9.93 % 151,629 6.00 % N/A N/A Tier 1 Capital (to average assets) or Leverage Ratio 250,925 8.56 % 117,198 4.00 % N/A N/A Common equity tier 1 capital (to risk-weighted assets) 250,925 9.93 % 113,722 4.50 % N/A N/A The Bank Total Capital (to risk weighted assets) $ 297,162 11.76 % $ 202,172 8.00 % $ 252,715 10.00 % Tier 1 Capital (to risk weighted assets) 265,545 10.51 % 151,629 6.00 % 202,172 8.00 % Tier 1 Capital (to average assets) or Leverage Ratio 265,545 9.06 % 117,198 4.00 % 146,498 5.00 % Common equity tier 1 capital (to risk-weighted assets) 265,545 10.51 % 113,722 4.50 % 164,265 6.50 % Actual Minimum Capital (1) Minimum Capital To Be Well Capitalized (2) (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2017 The Company Total Capital (to risk weighted assets) $ 270,826 11.21 % $ 193,327 8.00 % N/A N/A Tier 1 Capital (to risk weighted assets) 225,738 9.34 % 144,995 6.00 % N/A N/A Tier 1 Capital (to average assets) or Leverage Ratio 225,738 8.22 % 109,838 4.00 % N/A N/A Common equity tier 1 capital (to risk-weighted assets) 225,738 9.34 % 108,747 4.50 % N/A N/A The Bank Total Capital (to risk weighted assets) $ 270,150 11.18 % $ 193,301 8.00 % $ 241,626 10.00 % Tier 1 Capital (to risk weighted assets) 239,910 9.93 % 144,976 6.00 % 193,301 8.00 % Tier 1 Capital (to average assets) or Leverage Ratio 239,910 8.74 % 109,837 4.00 % 137,296 5.00 % Common equity tier 1 capital (to risk-weighted assets) 239,910 9.93 % 108,732 4.50 % 157,057 6.50 % (1) Before application of the capital conservation buffer of 1.875% as of December 31, 2018 and 1.25% as of December 31, 2017 , see discussion below. (2) For the Bank to qualify as "well-capitalized," it must maintain at least the minimum ratios listed. This prompt corrective action framework requirement does not apply to the Company. |
Schedule of Basel III Minimum Requirements at Full Phase In [Table Text Block] | The Basel III minimum capital ratio requirements as applicable to the Company and the Bank in January 2019 after the full phase-in period are summarized in the table below: Basel III Minimum for Capital Adequacy Purposes Basel III Additional Capital Conservation Buffer Basel III "Adequate" Ratio with Capital Conservation Buffer Total Capital (to risk weighted assets) 8.00% 2.50% 10.50% Tier 1 Capital (to risk weighted assets) 6.00% 2.50% 8.50% Tier 1 Capital (to average assets) or Leverage Ratio 4.00% — 4.00% Common equity tier 1 capital (to risk-weighted assets) 4.50% 2.50% 7.00% |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Employee Retirement Plan | |
Defined Benefit Plan and Other Postretirement Benefit Plans Disclosure [Line Items] | |
Schedule of Changes in Projected Benefit Obligations | The following table provides a reconciliation of the changes in the supplemental retirement benefit obligation and the net periodic benefit cost for the years ended December 31: (Dollars in thousands) 2018 2017 2016 Reconciliation of benefit obligation: Benefit obligation at beginning of year $ 2,372 $ 2,502 $ 2,654 Net periodic benefit cost: Interest cost 110 110 124 Actuarial (gain) loss (32 ) 36 — Net periodic benefit costs $ 78 $ 146 $ 124 Benefits paid (276 ) (276 ) (276 ) Benefit obligation at end of year $ 2,174 $ 2,372 $ 2,502 Funded status: Accrued liability as of December 31 $ (2,174 ) $ (2,372 ) $ (2,502 ) Discount rate used for benefit obligation (1) 4.75 % 4.50 % 4.75 % (1) Management utilizes the Moody's 20 year AA corporate bond rates to establish the reasonableness of the discount rate used. The Company reviews and periodically updates the discount rate to reflect changes in bond market rates. The impact of the discount rate change is reflected as the actuarial gain or loss. |
Schedule of Expected Benefit Payments | enefits expected to be paid in each of the next five years and in the aggregate five years thereafter: (Dollars in thousands) 2019 $ 276 2020 276 2021 276 2022 276 2023 276 2024-2028 1,269 |
Supplemental Life Insurance Benefit | |
Defined Benefit Plan and Other Postretirement Benefit Plans Disclosure [Line Items] | |
Schedule of Changes in Projected Benefit Obligations | The following table provides a reconciliation of the changes in the supplemental life insurance plan obligation and the net periodic benefit cost for the years ended December 31: (Dollars in thousands) 2018 2017 2016 Reconciliation of benefit obligation: Benefit obligation at beginning of year $ 2,032 $ 1,895 $ 1,792 Net periodic benefit cost: Service cost (13 ) (11 ) (9 ) Interest cost 94 91 88 Actuarial (gain) loss (29 ) 57 24 Total net period cost $ 52 $ 137 $ 103 Benefit obligation at end of year $ 2,084 $ 2,032 $ 1,895 Funded status: Accrued liability as of December 31 $ (2,084 ) $ (2,032 ) $ (1,895 ) Discount rate used for benefit obligation (1) 4.75 % 4.50 % 4.75 % (1) Management utilizes the Moody's 20 year AA corporate bond rates to establish the reasonableness of the discount rate used. The Company reviews and periodically updates the discount rate to reflect changes in bond market rates. The impact of the discount rate change is reflected as the actuarial gain or loss. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The table below provides a summary of the options granted, including the weighted average fair value, the fair value as a percentage of the market value of the stock at the date of grant and the average assumptions used in the model for the years indicated: Stock Option Awards 2018 2017 2016 Options granted 14,755 15,009 31,047 Term in years 10.0 10.0 10.0 Weighted average assumptions used in the fair value model: Expected volatility 37 % 40 % 42 % Expected dividend yield 2.10 % 2.09 % 3.02 % Expected life in years 6.5 7.0 7.0 Risk-free interest rate 2.86 % 2.35 % 1.91 % Weighted average market price on date of grants $ 34.33 $ 30.46 $ 21.91 Per share weighted average fair value $ 11.98 $ 11.34 $ 7.91 Fair value as a percentage of market value at grant date 35 % 37 % 36 % |
Schedule of Share-based Compensation, Stock Options, Activity | Stock option transactions during the year ended December 31, 2018 are summarized as follows: (Dollars in thousands, except per share data) Options Weighted Average Exercise Price Per Share Weighted Average Remaining Life in Years Aggregate Intrinsic Value Outstanding December 31, 2017 194,218 $ 19.29 5.0 $ 2,866 Granted 14,755 34.33 Exercised 24,842 16.30 Forfeited/Expired 286 23.57 Outstanding December 31, 2018 183,845 $ 20.90 4.9 $ 2,102 Vested and Exercisable at December 31, 2018 127,837 $ 18.14 3.6 $ 1,793 |
Schedule of Unvested Options | Stock option activity during the year ended December 31, 2018 for unvested options are summarized as follows: Unvested Options Options Weighted Average Grant Date Fair Value Unvested December 31, 2017 70,549 $ 8.81 Granted 14,755 11.98 Vested 29,035 8.12 Forfeited 261 9.13 Unvested December 31, 2018 56,008 $ 10.00 |
Schedule of Restricted Stock Awards Granted | The table below provides a summary of restricted stock awards granted during the years indicated: Restricted Stock Awards (number of underlying shares) 2018 2017 2016 Two-year vesting 7,280 6,944 9,060 Four-year vesting 16,666 16,253 18,298 Performance-based vesting 20,559 25,623 35,071 Total restricted stock awards 44,505 48,820 62,429 Weighted average grant date fair value $ 34.33 $ 30.46 $ 21.90 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table sets forth a summary of the activity for the Company's restricted stock awards: (Dollars in thousands, except per share data) Restricted Stock Weighted Average Grant Price Per Share Weighted Average Remaining Life in Years Aggregate Intrinsic Value Unvested December 31, 2017 117,219 $ 25.09 1.4 $ 3,991 Granted 44,505 34.33 Vested/released 68,954 23.95 Forfeited 1,062 28.92 Unvested December 31, 2018 91,708 $ 30.39 1.6 $ 2,949 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense for the years ended December 31, were calculated using the asset and liability method as follows: (Dollars in thousands) 2018 2017 2016 Current tax expense: Federal $ 6,485 $ 8,222 $ 8,178 State 2,835 2,271 2,244 Total current tax expense 9,320 10,493 10,422 Deferred tax (benefit)/ expense: Federal (392 ) 5,646 (984 ) State (112 ) 89 (277 ) Total deferred tax (benefit)/ expense (504 ) 5,735 (1,261 ) Total income tax expense $ 8,816 $ 16,228 $ 9,161 |
Schedule of Effective Income Tax Rate Reconciliation | The provision for income taxes differs from the amount computed by applying the statutory U.S. federal income tax rate of 21% for 2018 , and 35% for 2017 and 2016 to income before taxes as follows: (Dollars in thousands) 2018 2017 2016 Computed income tax expense at statutory rate $ 7,916 $ 12,467 $ 9,769 State income taxes, net of federal tax benefit 2,151 1,534 1,279 Tax-exempt income, net of disallowance (1,034 ) (1,665 ) (1,559 ) Bank-owned life insurance income, net (141 ) (245 ) (261 ) Impact of change in federal statutory rate on deferred tax assets — 4,761 — Tax benefit from stock compensation (302 ) (922 ) — Other 226 298 (67 ) Total income tax expense $ 8,816 $ 16,228 $ 9,161 Effective income tax rate 23.4 % 45.6 % 32.8 % |
Schedule of Deferred Tax Assets and Liabilities | At December 31, the tax effects of each type of income and expense item that give rise to deferred taxes are as follows: (Dollars in thousands) 2018 2017 Deferred tax asset: Allowance for loan losses $ 9,515 $ 9,252 Depreciation 2,118 1,831 Net fair value losses on equity securities 43 — Net unrealized loss on debt securities 402 — Supplemental employee retirement plans 611 667 Non-accrual interest 624 460 Stock-based compensation expense 555 608 Other 359 323 Total 14,227 13,141 Deferred tax liability: Goodwill 1,590 1,590 Net unrealized gains on debt securities — 90 Deferred origination costs 721 710 Other 169 — Total 2,480 2,390 Net deferred tax asset $ 11,747 $ 10,751 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | The table below presents the increase in average shares outstanding, using the treasury stock method, for the diluted earnings per share calculation for the years ended December 31st: 2018 2017 2016 Basic weighted average common shares outstanding 11,679,520 11,568,430 10,966,333 Dilutive shares 70,942 83,333 73,178 Diluted weighted average common shares outstanding 11,750,462 11,651,763 11,039,511 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | The following tables summarize significant assets and liabilities carried at fair value and placement in the fair value hierarchy at the dates specified: December 31, 2018 Fair Value Measurements using: (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Assets measured on a recurring basis: Debt securities $ 431,473 $ — $ 431,473 $ — Equity securities 1,448 1,448 — — FHLB stock 5,357 — — 5,357 Interest-rate swaps 723 — 723 — Assets measured on a non-recurring basis: Impaired loans (collateral dependent) 2,574 — — 2,574 Liabilities measured on a recurring basis: Interest-rate swaps $ 723 $ — $ 723 $ — December 31, 2017 Fair Value Measurements using: (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Assets measured on a recurring basis: Debt securities $ 405,206 $ — $ 405,206 $ — FHLB stock 5,215 — — 5,215 Interest-rate swaps 568 — 568 — Assets measured on a non-recurring basis: Impaired loans (collateral dependent) 2,696 — — 2,696 Liabilities measured on a recurring basis: Interest-rate swaps $ 568 $ — $ 568 $ — |
Quantitative Information About Significant Unobservable Inputs for Fair Value Measurements | The following table presents additional quantitative information about assets measured at fair value on a recurring and non-recurring basis for which the Company utilized Level 3 inputs (significant unobservable inputs for situations in which there is little, if any, market activity for the asset or liability) to determine fair value as of December 31, 2018 and December 31, 2017 : Fair Value (Dollars in thousands) December 31, 2018 December 31, 2017 Valuation Technique Unobservable Input Unobservable Input Value or Range Assets measured on a recurring basis: FHLB stock $5,357 $ 5,215 FHLB Stated Par Value N/A N/A Assets measured on a non-recurring basis: Impaired loans (collateral dependent) $2,574 $ 2,696 Appraisal of Collateral Appraisal adjustments (1) 5% - 50% (1) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. |
Fair Value, by Balance Sheet Grouping | The carrying values, estimated fair values and placement in the fair value hierarchy of the Company's consolidated financial instruments for which fair value is only disclosed but not recognized on the consolidated balance sheet at the dates indicated are summarized as follows: December 31, 2018 Fair value measurement (Dollars in thousands) Carrying Amount Fair Value Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial assets: Loans held for sale $ 701 $ 710 $ — $ 710 $ — Loans, net 2,353,657 2,331,076 — — 2,331,076 Financial liabilities: CDs (including brokered) 341,014 339,308 — 339,308 — Borrowed funds 100,492 100,312 — 100,312 — Subordinated debt 14,860 14,300 — — 14,300 December 31, 2017 Fair value measurement (Dollars in thousands) Carrying Amount Fair Value Level 1 Inputs Level 2 Inputs Level 3 Inputs Financial assets: Loans held for sale $ 208 $ 208 $ — $ 208 $ — Loans, net 2,236,989 2,236,169 — — 2,236,169 Financial liabilities: CDs (including brokered) 343,089 341,765 — 341,765 — Borrowed funds 89,000 88,996 — 88,996 — Subordinated debt 14,847 14,208 — — 14,208 |
Parent Company Only Financial_2
Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet | Balance Sheets December 31, (Dollars in thousands) 2018 2017 Assets Cash $ 123 $ 345 Investment in subsidiaries 269,917 245,982 Other assets 198 411 Total assets $ 270,238 $ 246,738 Liabilities and Stockholders' Equity Liabilities Subordinated debt $ 14,860 $ 14,847 Accrued interest payable 78 78 Other liabilities 3 3 Total liabilities 14,941 14,928 Stockholders' equity: Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued — — Common stock $0.01 par value per share; 40,000,000 shares authorized; 11,708,218 shares issued and outstanding at December 31, 2018 and 11,609,853 shares issued and outstanding at December 31, 2017 117 116 Additional paid-in capital 91,281 88,205 Retained earnings 165,183 143,073 Accumulated other comprehensive (loss) income (1,284 ) 416 Total stockholders' equity 255,297 231,810 Total liabilities and stockholders' equity $ 270,238 $ 246,738 |
Schedule of Condensed Income Statement | Statements of Income For the years ended December 31, (Dollars in thousands) 2018 2017 2016 Equity in undistributed net income of subsidiaries $ 25,635 $ 16,922 $ 19,313 Dividends distributed by subsidiaries 4,100 3,000 150 Total income 29,735 19,922 19,463 Interest expense 925 925 928 Other operating expenses 216 245 194 Total operating expenses 1,141 1,170 1,122 Income before income taxes 28,594 18,752 18,341 Benefit from income taxes (287 ) (641 ) (410 ) Net income $ 28,881 $ 19,393 $ 18,751 |
Schedule of Condensed Cash Flow Statement | Parent Company Only Financial Statements Statements of Cash Flows For the years ended December 31, (Dollars in thousands) 2018 2017 2016 Cash flows from operating activities: Net income $ 28,881 $ 19,393 $ 18,751 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of subsidiaries (25,635 ) (16,922 ) (19,313 ) Payment from subsidiary bank for stock compensation expense 1,879 1,758 2,348 Changes in: Decrease (increase) in other assets 213 832 (697 ) Decrease in other liabilities 13 14 9 Net cash provided by operating activities 5,351 5,075 1,098 Cash flows from investing activities: Investment in subsidiary (1) — — (19,730 ) Net cash provided by investing activities — — (19,730 ) Cash flows from financing activities: Cash dividends paid (6,771 ) (6,241 ) (5,684 ) Proceeds from issuance of common stock, net of expenses 1,449 1,590 21,183 Net settlement for employee tax withholdings on restricted stock and options (559 ) (931 ) (442 ) Proceeds from exercise of stock options 308 355 546 Tax benefit from stock-based compensation — — 789 Net cash (used in) provided by financing activities (5,573 ) (5,227 ) 16,392 Net decrease in cash and cash equivalents (222 ) (152 ) (2,240 ) Cash and cash equivalents, beginning of year 345 497 2,737 Cash and cash equivalents, end of year $ 123 $ 345 $ 497 (1) The outflow in investment in subsidiary in 2016 reflects the Company's investment in the Bank from the Offering. See Note 10 "Stockholders' Equity," above, for further information. |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | 2018 (Dollars in thousands, except share data) First Quarter Second Quarter Third Quarter Fourth Quarter Interest and dividend income $ 28,771 $ 30,320 $ 31,348 $ 32,464 Interest expense 2,756 3,102 3,936 4,274 Net interest income 26,015 27,218 27,412 28,190 Provision for loan losses 1,600 300 750 (400 ) Net interest income after provision for loan losses 24,415 26,918 26,662 28,590 Non-interest income 3,790 3,733 3,758 3,659 Net gains (losses) on sales of investment securities 1 — (34 ) (2,917 ) Non-interest expense 19,447 20,808 19,975 20,648 Income before income taxes 8,759 9,843 10,411 8,684 Provision for income taxes 1,934 2,269 2,429 2,184 Net income $ 6,825 $ 7,574 $ 7,982 $ 6,500 Basic earnings per share $ 0.59 $ 0.65 $ 0.68 $ 0.56 Diluted earnings per share $ 0.58 $ 0.64 $ 0.68 $ 0.55 2017 (Dollars in thousands, except share data) First Quarter Second Quarter Third Quarter Fourth Quarter Interest and dividend income $ 24,364 $ 25,338 $ 27,045 $ 28,285 Interest expense 1,517 1,803 1,911 2,279 Net interest income 22,847 23,535 25,134 26,006 Provision for loan losses 125 280 1,225 (200 ) Net interest income after provision for loan losses 22,722 23,255 23,909 26,206 Non-interest income 3,594 3,710 3,728 3,926 Net gains (losses) on sales of investment securities 540 229 (284 ) 231 Non-interest expense 19,420 18,754 18,833 19,138 Income before income taxes 7,436 8,440 8,520 11,225 Provision for income taxes 1,864 2,845 3,014 8,505 Net income $ 5,572 $ 5,595 $ 5,506 $ 2,720 Basic earnings per share $ 0.48 $ 0.48 $ 0.48 $ 0.23 Diluted earnings per share $ 0.48 $ 0.48 $ 0.47 $ 0.23 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($)branchespaymentsegment | Jan. 01, 2019USD ($) | Dec. 31, 2017USD ($) | Jul. 31, 2000branches | |
Summary of Significant Accounting Policies [Line Items] | ||||
Number of branches | branches | 24 | |||
Reportable operating segments | segment | 1 | |||
Federal Reserve Bank Average Daily Reserve Requirement included in Cash and Due from Banks | $ 9,000 | $ 7,600 | ||
Bank-owned life insurance | 30,138 | 29,466 | ||
Goodwill | 5,656 | 5,656 | ||
Number of offices related to the goodwill in acquisition | branches | 2 | |||
Investment assets under management | 800,800 | $ 845,000 | ||
Equity Securities, Fair Value Gain (Loss) Adjustment | $ (204) | |||
Buildings, Renovations, Land Improvements and Leasehold Improvements | Minimum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 10 years | |||
Buildings, Renovations, Land Improvements and Leasehold Improvements | Maximum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 39 years | |||
Computer software and equipment | Minimum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Computer software and equipment | Maximum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 5 years | |||
Furniture, fixtures and equipment | Minimum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Furniture, fixtures and equipment | Maximum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 10 years | |||
Residential | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Early payment default period | payment | 4 | |||
Lines of Credit and Demand Notes | Minimum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Period that loan deferred income is amortized | 3 years | |||
Lines of Credit and Demand Notes | Maximum | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Period that loan deferred income is amortized | 5 years | |||
Subsequent Event | Accounting Standards Update 2016-02 | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Operating Lease, Liability | $ 18,000 | |||
Operating Lease, Right-of-Use Asset | $ 19,000 |
Investment Securities Available
Investment Securities Available-for-Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Debt securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt Securities, Available-for-sale, Amortized Cost | $ 433,159 | $ 404,699 | ||
Debt Securities, Gross Unrealized Gains | 2,388 | 2,270 | ||
Debt Securities, Gross Unrealized Loss | 4,074 | 1,763 | ||
Debt Securities, Available-for-sale, Fair Value | 431,473 | 405,206 | ||
Federal agency obligations | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt Securities, Available-for-sale, Amortized Cost | [1] | 7,994 | 51,769 | |
Debt Securities, Gross Unrealized Gains | [1] | 0 | 30 | |
Debt Securities, Gross Unrealized Loss | [1] | 19 | 82 | |
Debt Securities, Available-for-sale, Fair Value | [1] | 7,975 | 51,717 | |
Residential federal agency MBS | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt Securities, Available-for-sale, Amortized Cost | [1] | 174,701 | 141,054 | |
Debt Securities, Gross Unrealized Gains | [1] | 633 | 71 | |
Debt Securities, Gross Unrealized Loss | [1] | 2,608 | 971 | |
Debt Securities, Available-for-sale, Fair Value | [1] | 172,726 | 140,154 | |
Commercial federal agency MBS | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt Securities, Available-for-sale, Amortized Cost | [1] | 93,800 | 66,777 | |
Debt Securities, Gross Unrealized Gains | [1] | 609 | 9 | |
Debt Securities, Gross Unrealized Loss | [1] | 430 | 286 | |
Debt Securities, Available-for-sale, Fair Value | [1] | 93,979 | 66,500 | |
Collateralized mortgage obligations | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt Securities, Available-for-sale, Fair Value | 242,800 | 171,700 | ||
Municipal securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt Securities, Available-for-sale, Amortized Cost | 141,747 | 132,603 | ||
Debt Securities, Gross Unrealized Gains | 1,122 | 2,097 | ||
Debt Securities, Gross Unrealized Loss | 826 | 354 | ||
Debt Securities, Available-for-sale, Fair Value | 142,043 | 134,346 | ||
Tax exempt interest earned on municipal securities | 4,500 | 4,000 | $ 3,600 | |
Average balance tax exempt securities | 119,200 | 111,600 | ||
Corporate bonds | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt Securities, Available-for-sale, Amortized Cost | 13,967 | 11,546 | ||
Debt Securities, Gross Unrealized Gains | 24 | 63 | ||
Debt Securities, Gross Unrealized Loss | 185 | 67 | ||
Debt Securities, Available-for-sale, Fair Value | 13,806 | 11,542 | ||
Certificates of deposit | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt Securities, Available-for-sale, Amortized Cost | [2] | 950 | 950 | |
Debt Securities, Gross Unrealized Gains | [2] | 0 | 0 | |
Debt Securities, Gross Unrealized Loss | [2] | 6 | 3 | |
Debt Securities, Available-for-sale, Fair Value | [2] | 944 | 947 | |
Collateral Pledged | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Debt Securities, Pledged as Collateral | $ 424,700 | $ 383,100 | ||
[1] | These categories may include investments issued or guaranteed by government sponsored enterprises such as Fannie Mae ("FNMA"), Freddie Mac ("FHLMC"), Federal Farm Credit Bank ("FFCB"), or one of several Federal Home Loan Banks, as well as, investments guaranteed by Ginnie Mae ("GNMA"), a wholly-owned government entity. | |||
[2] | CDs represent term deposits issued by banks that are subject to FDIC insurance and purchased on the open market. |
Investment Securities Debt Secu
Investment Securities Debt Securities, Available-for-Sale - Continuous Loss Position (Details) $ in Thousands | Dec. 31, 2018USD ($)investments | Dec. 31, 2017USD ($)investments |
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, temporarily impaired, less than 12 months, fair value | $ 50,715 | $ 200,243 |
Debt Securities, temporarily impaired,less than 12 months, unrealized loss | 753 | 1,324 |
Debt securities,temporarily impaired, 12 months or longer, fair value | 154,715 | 20,328 |
Debt securities, temporarily impaired, 12 months or longer, unrealized loss | 3,321 | 439 |
Debt securities, temporarily impaired, fair value | 205,430 | 220,571 |
Debt securities, temporarily impaired, unrealized loss | $ 4,074 | $ 1,763 |
Number of debt securities in loss positions | investments | 187 | 137 |
Federal agency obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, temporarily impaired, less than 12 months, fair value | $ 997 | $ 34,344 |
Debt Securities, temporarily impaired,less than 12 months, unrealized loss | 1 | 82 |
Debt securities,temporarily impaired, 12 months or longer, fair value | 6,978 | 0 |
Debt securities, temporarily impaired, 12 months or longer, unrealized loss | 18 | 0 |
Debt securities, temporarily impaired, fair value | 7,975 | 34,344 |
Debt securities, temporarily impaired, unrealized loss | $ 19 | $ 82 |
Number of debt securities in loss positions | investments | 3 | 9 |
Residential federal agency MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, temporarily impaired, less than 12 months, fair value | $ 26,147 | $ 109,308 |
Debt Securities, temporarily impaired,less than 12 months, unrealized loss | 597 | 882 |
Debt securities,temporarily impaired, 12 months or longer, fair value | 81,158 | 2,015 |
Debt securities, temporarily impaired, 12 months or longer, unrealized loss | 2,011 | 89 |
Debt securities, temporarily impaired, fair value | 107,305 | 111,323 |
Debt securities, temporarily impaired, unrealized loss | $ 2,608 | $ 971 |
Number of debt securities in loss positions | investments | 25 | 30 |
Commercial federal agency MBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, temporarily impaired, less than 12 months, fair value | $ 3,258 | $ 35,859 |
Debt Securities, temporarily impaired,less than 12 months, unrealized loss | 11 | 205 |
Debt securities,temporarily impaired, 12 months or longer, fair value | 18,717 | 5,190 |
Debt securities, temporarily impaired, 12 months or longer, unrealized loss | 419 | 81 |
Debt securities, temporarily impaired, fair value | 21,975 | 41,049 |
Debt securities, temporarily impaired, unrealized loss | $ 430 | $ 286 |
Number of debt securities in loss positions | investments | 9 | 11 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, temporarily impaired, less than 12 months, fair value | $ 15,036 | $ 16,983 |
Debt Securities, temporarily impaired,less than 12 months, unrealized loss | 108 | 129 |
Debt securities,temporarily impaired, 12 months or longer, fair value | 41,265 | 10,210 |
Debt securities, temporarily impaired, 12 months or longer, unrealized loss | 718 | 225 |
Debt securities, temporarily impaired, fair value | 56,301 | 27,193 |
Debt securities, temporarily impaired, unrealized loss | $ 826 | $ 354 |
Number of debt securities in loss positions | investments | 83 | 50 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, temporarily impaired, less than 12 months, fair value | $ 5,277 | $ 2,802 |
Debt Securities, temporarily impaired,less than 12 months, unrealized loss | 36 | 23 |
Debt securities,temporarily impaired, 12 months or longer, fair value | 5,653 | 2,913 |
Debt securities, temporarily impaired, 12 months or longer, unrealized loss | 149 | 44 |
Debt securities, temporarily impaired, fair value | 10,930 | 5,715 |
Debt securities, temporarily impaired, unrealized loss | $ 185 | $ 67 |
Number of debt securities in loss positions | investments | 63 | 33 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, temporarily impaired, less than 12 months, fair value | $ 0 | $ 947 |
Debt Securities, temporarily impaired,less than 12 months, unrealized loss | 0 | 3 |
Debt securities,temporarily impaired, 12 months or longer, fair value | 944 | 0 |
Debt securities, temporarily impaired, 12 months or longer, unrealized loss | 6 | 0 |
Debt securities, temporarily impaired, fair value | 944 | 947 |
Debt securities, temporarily impaired, unrealized loss | $ 6 | $ 3 |
Number of debt securities in loss positions | investments | 4 | 4 |
Investment Securities Debt Se_2
Investment Securities Debt Securities, Available-for-Sale - Maturities (Details) - Debt securities - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost, Within One Year | $ 13,678 | |
Fair Value, Within One Year | 13,662 | |
Amortized Cost Basis, After One, But Within Five Years | 54,873 | |
Fair Value, After One, But Within Five Years | 55,012 | |
Amortized Cost, After Five, But Within Ten Years | 160,316 | |
Fair Value, After Five, But Within Ten Years | 160,735 | |
Amortized Cost Basis, After Ten Years | 204,292 | |
Fair Value, After Ten Years | 202,064 | |
Debt Securities, Available-for-sale, Amortized Cost | 433,159 | $ 404,699 |
Debt Securities, Available-for-sale, Fair Value | 431,473 | $ 405,206 |
Callable debt securities, fair value | $ 79,100 |
Investment Securities Debt Se_3
Investment Securities Debt Securities, Available-for-Sale - Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Gain (Loss) on Securities [Line Items] | |||||
Percent of Debt Security Portfolio Sold and Reinvested Due to Portfolio Restructure | 27.00% | ||||
Debt securities | |||||
Gain (Loss) on Securities [Line Items] | |||||
Amortized cost of investments sold, including pending trades | [1] | $ 122,652 | $ 133,812 | $ 2,245 | |
Debt Securities, Available-for-sale, Realized Gain | 4 | 38 | 53 | ||
Debt Securities, Available-for-sale, Realized Loss | (2,975) | (2,588) | (1) | ||
Proceeds from sale of investment securities, Including pending trades | $ 119,681 | $ 131,262 | $ 2,297 | ||
[1] | Amortized cost of investments sold is determined on a specific identification basis. |
Investment Securities Equity Se
Investment Securities Equity Securities (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Marketable Securities [Line Items] | |||||||||||
Equity Securities | $ 1,400,000 | $ 1,400,000 | |||||||||
Equity Securities, Fair Value Gain (Loss) Adjustment | (204,000) | ||||||||||
Marketable Securities, Amortized Cost Basis, Investments Sold, Including Pending Trades | 0 | ||||||||||
Net gains (losses) on sales of investment securities | $ (2,917,000) | $ (34,000) | $ 0 | $ 1,000 | $ 231,000 | $ (284,000) | $ 229,000 | $ 540,000 | (2,950,000) | $ 716,000 | $ 802,000 |
Equity securities | |||||||||||
Marketable Securities [Line Items] | |||||||||||
Available-for-sale Securities | $ 0 | 0 | |||||||||
Net gains (losses) on sales of investment securities | $ 21,000 | 3,300,000 | 750,000 | ||||||||
Available-for-sale Securities, Amortized Cost Basis, Investments Sold, Including Pending Trades | $ 10,900,000 | $ 2,100,000 |
Loans - Balance by Class of Loa
Loans - Balance by Class of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | $ 2,390,420 | $ 2,272,549 | ||
Deferred loan origination fees, net | (2,914) | (2,645) | ||
Total loans | 2,387,506 | 2,269,904 | ||
Allowance for loan losses | (33,849) | (32,915) | $ (31,342) | $ (29,008) |
Net loans | 2,353,657 | 2,236,989 | ||
Commercial | ||||
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | 2,052,562 | 1,975,058 | ||
Commercial real estate | ||||
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | 1,303,879 | 1,201,351 | ||
Allowance for loan losses | (18,014) | (17,545) | (14,902) | |
Commercial and industrial | ||||
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | 514,253 | 498,802 | ||
Allowance for loan losses | (10,493) | (9,669) | (11,204) | |
Commercial construction | ||||
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | 234,430 | 274,905 | ||
Allowance for loan losses | (3,307) | (3,947) | (3,406) | |
Retail | ||||
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | 337,858 | 297,491 | ||
Residential | ||||
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | 231,501 | 195,492 | ||
Allowance for loan losses | (1,160) | (904) | (960) | |
Home Equity | ||||
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | 96,116 | 91,706 | ||
Allowance for loan losses | (629) | (608) | (634) | |
Consumer | ||||
Schedule of Loans by Loan Classification [Line Items] | ||||
Gross loans | 10,241 | 10,293 | ||
Allowance for loan losses | $ (246) | $ (242) | $ (236) |
Loans - Loan Categories Narrati
Loans - Loan Categories Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Loans by Loan Classification [Line Items] | |||
Outstanding loan balances to related parties | $ 50.2 | $ 33.9 | |
Unadvanced lines of credit available to related parties | 9.8 | 16.8 | |
New loans and net increases to loan balances to related parties during period | 13.3 | 30.2 | |
Principal paydowns on related party loans | 4.1 | 7.9 | |
Commercial | |||
Schedule of Loans by Loan Classification [Line Items] | |||
Participation loans amount | 63.5 | 91.6 | |
Participations loans sold that are still serviced amount | 72.1 | 70.7 | |
Tax exempt interest income on qualified commercial loans | 2.3 | 2.1 | $ 2.1 |
Average tax exempt loan balances | 66.2 | 64.4 | |
Residential | |||
Schedule of Loans by Loan Classification [Line Items] | |||
Amount of loans serviced for others | $ 17.2 | $ 18.4 |
Loans - Loans Serving as Collat
Loans - Loans Serving as Collateral (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Loans pledged to the FHLB for borrowing capacity | $ 540,221 | $ 421,632 |
Commercial real estate | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Loans pledged to the FHLB for borrowing capacity | 311,024 | 224,703 |
Residential | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Loans pledged to the FHLB for borrowing capacity | 220,815 | 187,524 |
Home Equity | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Loans pledged to the FHLB for borrowing capacity | $ 8,382 | $ 9,405 |
Allowance For Loan Losses - Eva
Allowance For Loan Losses - Evaluation Method (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | $ 31,530 | $ 26,262 |
Loans collectively evaluated for impairment | 2,358,890 | 2,246,287 |
Gross loans | 2,390,420 | 2,272,549 |
Commercial real estate | ||
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | 16,318 | 13,739 |
Loans collectively evaluated for impairment | 1,287,561 | 1,187,612 |
Gross loans | 1,303,879 | 1,201,351 |
Commercial and industrial | ||
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | 12,053 | 10,096 |
Loans collectively evaluated for impairment | 502,200 | 488,706 |
Gross loans | 514,253 | 498,802 |
Commercial construction | ||
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | 1,736 | 1,624 |
Loans collectively evaluated for impairment | 232,694 | 273,281 |
Gross loans | 234,430 | 274,905 |
Residential | ||
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | 893 | 397 |
Loans collectively evaluated for impairment | 230,608 | 195,095 |
Gross loans | 231,501 | 195,492 |
Home Equity | ||
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | 514 | 371 |
Loans collectively evaluated for impairment | 95,602 | 91,335 |
Gross loans | 96,116 | 91,706 |
Consumer | ||
Schedule of Financing Receivable by Evaluation Method [Line Items] | ||
Loans individually evaluated for impairment | 16 | 35 |
Loans collectively evaluated for impairment | 10,225 | 10,258 |
Gross loans | $ 10,241 | $ 10,293 |
Allowance For Loan Losses - Adv
Allowance For Loan Losses - Adversely Classified Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | $ 2,390,420 | $ 2,272,549 |
Adversely classified loans to total loans | 1.49% | 1.16% |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | $ 1,303,879 | $ 1,201,351 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 514,253 | 498,802 |
Commercial construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 234,430 | 274,905 |
Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 231,501 | 195,492 |
Home Equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 96,116 | 91,706 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 10,241 | 10,293 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 35,213 | 26,354 |
Substandard | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 17,714 | 12,895 |
Substandard | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 12,821 | 9,915 |
Substandard | Commercial construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 2,262 | 1,624 |
Substandard | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 1,820 | 1,355 |
Substandard | Home Equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 561 | 513 |
Substandard | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 35 | 52 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 248 | 58 |
Doubtful | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 240 | 0 |
Doubtful | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 0 | 48 |
Doubtful | Commercial construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 0 | 0 |
Doubtful | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 0 | 0 |
Doubtful | Home Equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 0 | 0 |
Doubtful | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 8 | 10 |
Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 0 | 1 |
Loss | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 0 | 0 |
Loss | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 0 | 1 |
Loss | Commercial construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 0 | 0 |
Loss | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 0 | 0 |
Loss | Home Equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 0 | 0 |
Loss | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 0 | 0 |
Not Adversely Classified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 2,354,959 | 2,246,136 |
Not Adversely Classified | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 1,285,925 | 1,188,456 |
Not Adversely Classified | Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 501,432 | 488,838 |
Not Adversely Classified | Commercial construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 232,168 | 273,281 |
Not Adversely Classified | Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 229,681 | 194,137 |
Not Adversely Classified | Home Equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | 95,555 | 91,193 |
Not Adversely Classified | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Gross loans | $ 10,198 | $ 10,231 |
Allowance For Loan Losses - Pas
Allowance For Loan Losses - Past Due and Non-Accrual Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Aging of Financing Receivables [Line Items] | ||
Number of days a loan must be paid current before accrual of interest is resumed | 180 days | |
Total Past Due Loans | $ 19,634 | $ 14,947 |
Current Loans | 2,370,786 | 2,257,602 |
Gross loans | 2,390,420 | 2,272,549 |
Non-accrual loans | $ 11,784 | $ 9,032 |
The ratio of non-accrual loans to total loans | 0.49% | 0.40% |
Commercial real estate | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Total Past Due Loans | $ 11,438 | $ 7,838 |
Current Loans | 1,292,441 | 1,193,513 |
Gross loans | 1,303,879 | 1,201,351 |
Non-accrual loans | 6,894 | 6,751 |
Commercial and industrial | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Total Past Due Loans | 2,935 | 1,228 |
Current Loans | 511,318 | 497,574 |
Gross loans | 514,253 | 498,802 |
Non-accrual loans | 3,417 | 1,294 |
Commercial construction | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Total Past Due Loans | 4,319 | 3,044 |
Current Loans | 230,111 | 271,861 |
Gross loans | 234,430 | 274,905 |
Non-accrual loans | 176 | 193 |
Residential | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Total Past Due Loans | 491 | 2,113 |
Current Loans | 231,010 | 193,379 |
Gross loans | 231,501 | 195,492 |
Non-accrual loans | 763 | 262 |
Home Equity | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Total Past Due Loans | 391 | 623 |
Current Loans | 95,725 | 91,083 |
Gross loans | 96,116 | 91,706 |
Non-accrual loans | 514 | 463 |
Consumer | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Total Past Due Loans | 60 | 101 |
Current Loans | 10,181 | 10,192 |
Gross loans | 10,241 | 10,293 |
Non-accrual loans | 20 | 69 |
Loans 30-59 Days Past Due | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 12,685 | 9,573 |
Loans 30-59 Days Past Due | Commercial real estate | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 7,596 | 4,200 |
Loans 30-59 Days Past Due | Commercial and industrial | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 619 | 374 |
Loans 30-59 Days Past Due | Commercial construction | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 4,319 | 2,526 |
Loans 30-59 Days Past Due | Residential | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 114 | 1,931 |
Loans 30-59 Days Past Due | Home Equity | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 14 | 491 |
Loans 30-59 Days Past Due | Consumer | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 23 | 51 |
Loans 60-89 Days Past Due | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 237 | 1,332 |
Loans 60-89 Days Past Due | Commercial real estate | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 21 | 69 |
Loans 60-89 Days Past Due | Commercial and industrial | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 17 | 527 |
Loans 60-89 Days Past Due | Commercial construction | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 0 | 518 |
Loans 60-89 Days Past Due | Residential | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 0 | 93 |
Loans 60-89 Days Past Due | Home Equity | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 168 | 120 |
Loans 60-89 Days Past Due | Consumer | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 31 | 5 |
\Loans equal to or greater than 90 days past due | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 6,712 | 4,042 |
\Loans equal to or greater than 90 days past due | Commercial real estate | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 3,821 | 3,569 |
\Loans equal to or greater than 90 days past due | Commercial and industrial | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 2,299 | 327 |
\Loans equal to or greater than 90 days past due | Commercial construction | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 0 | 0 |
\Loans equal to or greater than 90 days past due | Residential | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 377 | 89 |
\Loans equal to or greater than 90 days past due | Home Equity | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 209 | 12 |
\Loans equal to or greater than 90 days past due | Consumer | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 6 | 45 |
Not Adversely Classified | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 2,354,959 | 2,246,136 |
Non-accrual loans not adversely classified | 81 | 21 |
Not Adversely Classified | Commercial real estate | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 1,285,925 | 1,188,456 |
Not Adversely Classified | Commercial and industrial | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 501,432 | 488,838 |
Not Adversely Classified | Commercial construction | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 232,168 | 273,281 |
Not Adversely Classified | Residential | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 229,681 | 194,137 |
Not Adversely Classified | Home Equity | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | 95,555 | 91,193 |
Not Adversely Classified | Consumer | ||
Schedule of Aging of Financing Receivables [Line Items] | ||
Gross loans | $ 10,198 | $ 10,231 |
Allowance For Loan Losses - Int
Allowance For Loan Losses - Interest Income Lost on Nonaccrual Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Receivables [Abstract] | |||
Income that would have been recognized if non-accrual loans had been current | $ 2,106 | $ 1,906 | $ 1,585 |
Less income recognized | 833 | 990 | 722 |
Reduction in interest income | $ 1,273 | $ 916 | $ 863 |
Allowance For Loan Losses - Imp
Allowance For Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | |||
Total accruing impaired loans | $ 19,700 | $ 17,400 | |
Impaired non-accrual loans | 11,800 | 8,900 | |
Interest income that was not recognized on loans that were deem impaired | 1,100 | 890 | $ 858 |
Additional funding commitments on impaired loans | 290 | ||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Unpaid contractual principal balance | 33,153 | 28,358 | |
Total recorded investment in impaired loans | 31,530 | 26,262 | |
Recorded investment with no allowance | 26,423 | 22,160 | |
Recorded investment with allowance | 5,107 | 4,102 | |
Related allowance | 2,224 | 1,383 | |
Average recorded investment | 28,661 | 29,390 | 26,586 |
Interest income recognized | 851 | 825 | 701 |
Commercial real estate | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Unpaid contractual principal balance | 17,140 | 15,132 | |
Total recorded investment in impaired loans | 16,318 | 13,739 | |
Recorded investment with no allowance | 15,948 | 12,850 | |
Recorded investment with allowance | 370 | 889 | |
Related allowance | 55 | 59 | |
Average recorded investment | 13,971 | 14,473 | 12,988 |
Interest income recognized | 385 | 363 | 332 |
Commercial and industrial | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Unpaid contractual principal balance | 12,538 | 10,458 | |
Total recorded investment in impaired loans | 12,053 | 10,096 | |
Recorded investment with no allowance | 7,752 | 7,053 | |
Recorded investment with allowance | 4,301 | 3,043 | |
Related allowance | 2,140 | 1,284 | |
Average recorded investment | 11,801 | 12,272 | 9,790 |
Interest income recognized | 373 | 370 | 223 |
Commercial construction | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Unpaid contractual principal balance | 1,804 | 1,678 | |
Total recorded investment in impaired loans | 1,736 | 1,624 | |
Recorded investment with no allowance | 1,736 | 1,624 | |
Recorded investment with allowance | 0 | 0 | |
Related allowance | 0 | 0 | |
Average recorded investment | 1,691 | 1,818 | 3,137 |
Interest income recognized | 93 | 92 | 150 |
Residential | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Unpaid contractual principal balance | 970 | 511 | |
Total recorded investment in impaired loans | 893 | 397 | |
Recorded investment with no allowance | 473 | 262 | |
Recorded investment with allowance | 420 | 135 | |
Related allowance | 13 | 5 | |
Average recorded investment | 644 | 320 | 301 |
Interest income recognized | 0 | 2 | 0 |
Home Equity | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Unpaid contractual principal balance | 685 | 543 | |
Total recorded investment in impaired loans | 514 | 371 | |
Recorded investment with no allowance | 514 | 371 | |
Recorded investment with allowance | 0 | 0 | |
Related allowance | 0 | 0 | |
Average recorded investment | 498 | 482 | 356 |
Interest income recognized | 0 | (1) | (4) |
Consumer | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Unpaid contractual principal balance | 16 | 36 | |
Total recorded investment in impaired loans | 16 | 35 | |
Recorded investment with no allowance | 0 | 0 | |
Recorded investment with allowance | 16 | 35 | |
Related allowance | 16 | 35 | |
Average recorded investment | 56 | 25 | 14 |
Interest income recognized | $ 0 | $ (1) | $ 0 |
Allowance For Loan Losses - Tro
Allowance For Loan Losses - Troubled Debt Restructures (Details) | 12 Months Ended | |
Dec. 31, 2018USD ($)restructuring | Dec. 31, 2017USD ($)restructuring | |
Financing Receivable, Modifications [Line Items] | ||
Total Troubled Debt Restructure (TDR) loans | $ 23,100,000 | $ 20,300,000 |
TDR loans on accrual status | 19,400,000 | 17,400,000 |
TDR loans included in non-performing loans | 3,700,000 | $ 2,900,000 |
Additional funding commitment on TDRs | $ 289,000 | |
Number of restructurings | restructuring | 16 | 11 |
Pre-modification outstanding recorded investment | $ 3,737,000 | $ 1,219,000 |
Post-modification recorded investment | 3,362,000 | 1,156,000 |
Specific reserves allocated to TDRs | 425,000 | 155,000 |
Charge-offs associated with TDRs | $ 109,000 | $ 0 |
Number of TDRs that defaulted | restructuring | 6 | 2 |
Post-modification outstanding recorded investment, TDRs that defaulted | $ 447,000 | $ 20,000 |
Commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of restructurings | restructuring | 4 | 3 |
Pre-modification outstanding recorded investment | $ 2,342,000 | $ 696,000 |
Post-modification recorded investment | $ 2,349,000 | $ 674,000 |
Number of TDRs that defaulted | restructuring | 1 | 0 |
Post-modification outstanding recorded investment, TDRs that defaulted | $ 82,000 | $ 0 |
Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of restructurings | restructuring | 10 | 6 |
Pre-modification outstanding recorded investment | $ 1,283,000 | $ 386,000 |
Post-modification recorded investment | $ 921,000 | $ 346,000 |
Number of TDRs that defaulted | restructuring | 3 | 2 |
Post-modification outstanding recorded investment, TDRs that defaulted | $ 273,000 | $ 20,000 |
Commercial construction | ||
Financing Receivable, Modifications [Line Items] | ||
Number of restructurings | restructuring | 0 | 0 |
Pre-modification outstanding recorded investment | $ 0 | $ 0 |
Post-modification recorded investment | $ 0 | $ 0 |
Number of TDRs that defaulted | restructuring | 0 | 0 |
Post-modification outstanding recorded investment, TDRs that defaulted | $ 0 | $ 0 |
Residential | ||
Financing Receivable, Modifications [Line Items] | ||
Number of restructurings | restructuring | 0 | 1 |
Pre-modification outstanding recorded investment | $ 0 | $ 136,000 |
Post-modification recorded investment | $ 0 | $ 135,000 |
Number of TDRs that defaulted | restructuring | 0 | 0 |
Post-modification outstanding recorded investment, TDRs that defaulted | $ 0 | $ 0 |
Home Equity | ||
Financing Receivable, Modifications [Line Items] | ||
Number of restructurings | restructuring | 2 | 0 |
Pre-modification outstanding recorded investment | $ 112,000 | $ 0 |
Post-modification recorded investment | $ 92,000 | $ 0 |
Number of TDRs that defaulted | restructuring | 2 | 0 |
Post-modification outstanding recorded investment, TDRs that defaulted | $ 92,000 | $ 0 |
Consumer | ||
Financing Receivable, Modifications [Line Items] | ||
Number of restructurings | restructuring | 0 | 1 |
Pre-modification outstanding recorded investment | $ 0 | $ 1,000 |
Post-modification recorded investment | $ 0 | $ 1,000 |
Number of TDRs that defaulted | restructuring | 0 | 0 |
Post-modification outstanding recorded investment, TDRs that defaulted | $ 0 | $ 0 |
Loan Advances With Adequate Collateral [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of restructurings | restructuring | 1 | 0 |
Post-modification recorded investment | $ 240,000 | $ 0 |
Extended Maturity | ||
Financing Receivable, Modifications [Line Items] | ||
Number of restructurings | restructuring | 0 | 1 |
Post-modification recorded investment | $ 0 | $ 175,000 |
Temporary payment reduction and payment re-amortization of remaining principal over extended term | ||
Financing Receivable, Modifications [Line Items] | ||
Number of restructurings | restructuring | 8 | 6 |
Post-modification recorded investment | $ 304,000 | $ 790,000 |
Temporary interest only plan | ||
Financing Receivable, Modifications [Line Items] | ||
Number of restructurings | restructuring | 3 | 4 |
Post-modification recorded investment | $ 2,349,000 | $ 191,000 |
Other Payment Concessions | ||
Financing Receivable, Modifications [Line Items] | ||
Number of restructurings | restructuring | 4 | 0 |
Post-modification recorded investment | $ 469,000 | $ 0 |
Allowance For Loan Losses - Oth
Allowance For Loan Losses - Other Real Estate Owned (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)property | Dec. 31, 2016USD ($)property | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Carrying value of OREO | $ 0 | $ 0 | |
Net gains on sales of OREO | 0 | 0 | $ 0 |
Consumer Mortgage Loans in Process of Foreclosure, Amount | $ 0 | $ 101,000 | |
Other real estate owned | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Oreo Additions | 0 | 0 | 0 |
OREO fair value adjustment | $ 0 | $ 0 | $ 0 |
Allowance For Loan Losses - All
Allowance For Loan Losses - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Allowance for loan losses to total loans ratio | 1.42% | 1.45% | 1.42% | 1.45% | |||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning Balance | $ 32,915 | $ 31,342 | $ 32,915 | $ 31,342 | $ 29,008 | ||||||
Provision for loan losses | $ (400) | $ 750 | $ 300 | 1,600 | $ (200) | $ 1,225 | $ 280 | 125 | 2,250 | 1,430 | 2,993 |
Recoveries | 431 | 755 | 709 | ||||||||
Less: Charge offs | 1,747 | 612 | 1,368 | ||||||||
Ending Balance | 33,849 | 32,915 | 33,849 | 32,915 | 31,342 | ||||||
Allocated to loans individually evaluated for impairment | 2,224 | 1,383 | 2,224 | 1,383 | |||||||
Allocated to loans collectively evaluated for impairment | 31,625 | 31,532 | 31,625 | 31,532 | |||||||
Commercial real estate | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning Balance | 17,545 | 14,902 | 17,545 | 14,902 | |||||||
Provision for loan losses | 418 | 2,628 | |||||||||
Recoveries | 51 | 193 | |||||||||
Less: Charge offs | 0 | 178 | |||||||||
Ending Balance | 18,014 | 17,545 | 18,014 | 17,545 | 14,902 | ||||||
Allocated to loans individually evaluated for impairment | 55 | 59 | 55 | 59 | |||||||
Allocated to loans collectively evaluated for impairment | 17,959 | 17,486 | 17,959 | 17,486 | |||||||
Commercial and industrial | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning Balance | 9,669 | 11,204 | 9,669 | 11,204 | |||||||
Provision for loan losses | 2,139 | (1,737) | |||||||||
Recoveries | 278 | 550 | |||||||||
Less: Charge offs | 1,593 | 348 | |||||||||
Ending Balance | 10,493 | 9,669 | 10,493 | 9,669 | 11,204 | ||||||
Allocated to loans individually evaluated for impairment | 2,140 | 1,284 | 2,140 | 1,284 | |||||||
Allocated to loans collectively evaluated for impairment | 8,353 | 8,385 | 8,353 | 8,385 | |||||||
Commercial construction | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning Balance | 3,947 | 3,406 | 3,947 | 3,406 | |||||||
Provision for loan losses | (640) | 541 | |||||||||
Recoveries | 0 | 0 | |||||||||
Less: Charge offs | 0 | 0 | |||||||||
Ending Balance | 3,307 | 3,947 | 3,307 | 3,947 | 3,406 | ||||||
Allocated to loans individually evaluated for impairment | 0 | 0 | 0 | 0 | |||||||
Allocated to loans collectively evaluated for impairment | 3,307 | 3,947 | 3,307 | 3,947 | |||||||
Residential | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning Balance | 904 | 960 | 904 | 960 | |||||||
Provision for loan losses | 256 | (56) | |||||||||
Recoveries | 0 | 0 | |||||||||
Less: Charge offs | 0 | 0 | |||||||||
Ending Balance | 1,160 | 904 | 1,160 | 904 | 960 | ||||||
Allocated to loans individually evaluated for impairment | 13 | 5 | 13 | 5 | |||||||
Allocated to loans collectively evaluated for impairment | 1,147 | 899 | 1,147 | 899 | |||||||
Home Equity | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning Balance | 608 | 634 | 608 | 634 | |||||||
Provision for loan losses | (34) | (30) | |||||||||
Recoveries | 55 | 4 | |||||||||
Less: Charge offs | 0 | 0 | |||||||||
Ending Balance | 629 | 608 | 629 | 608 | 634 | ||||||
Allocated to loans individually evaluated for impairment | 0 | 0 | 0 | 0 | |||||||
Allocated to loans collectively evaluated for impairment | 629 | 608 | 629 | 608 | |||||||
Consumer | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning Balance | $ 242 | $ 236 | 242 | 236 | |||||||
Provision for loan losses | 111 | 84 | |||||||||
Recoveries | 47 | 8 | |||||||||
Less: Charge offs | 154 | 86 | |||||||||
Ending Balance | 246 | 242 | 246 | 242 | $ 236 | ||||||
Allocated to loans individually evaluated for impairment | 16 | 35 | 16 | 35 | |||||||
Allocated to loans collectively evaluated for impairment | $ 230 | $ 207 | $ 230 | $ 207 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Gross premises and equipment | $ 81,002 | $ 77,663 | |
Less accumulated depreciation | (43,414) | (40,641) | |
Total premises and equipment, net of accumulated depreciation | 37,588 | 37,022 | |
Depreciation expense | 4,700 | 4,700 | $ 4,400 |
Land and land Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Gross premises and equipment | 6,722 | 5,962 | |
Bank premises and leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Gross premises and equipment | 42,658 | 42,051 | |
Computer software and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Gross premises and equipment | 10,054 | 9,303 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Gross premises and equipment | $ 21,568 | $ 20,347 |
Premises and Equipment - Operat
Premises and Equipment - Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Operating Leases, Rent Expense | $ 1,400 | $ 1,400 | $ 1,300 |
2019 | 1,200 | ||
2020 | 969 | ||
2021 | 950 | ||
2022 | 917 | ||
2023 | 848 | ||
Thereafter | 6,384 | ||
Total minimum lease payments | $ 11,268 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Deposits [Abstract] | |||
Non-interest bearing checking | $ 765,029 | $ 705,846 | |
Interest bearing checking | 403,497 | 391,111 | |
Savings | 193,214 | 193,385 | |
Money market | 862,028 | 807,931 | |
Certificates of deposit, $250,000 or less | 215,200 | 150,445 | |
Certificates of deposit more than $250,000 | 69,031 | 45,154 | |
Total customer deposits | 2,507,999 | 2,293,872 | |
Brokered deposits | [1] | 56,783 | 147,490 |
Total Deposits | 2,564,782 | 2,441,362 | |
Reciprocal deposits | 342,400 | 249,600 | |
Overdrawn deposits reclassified as loans | $ 470 | $ 359 | |
[1] | Brokered CDs which are $250,000 and under. |
Deposits - Maturities (Details)
Deposits - Maturities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Deposits [Abstract] | ||
Weighted average remaining life, brokered deposits | 6 months | 6 months |
Due in less than twelve months | $ 223,611 | $ 240,995 |
Due in over one year through two years | 93,770 | 60,692 |
Due in over two years through three years, | 16,228 | 28,141 |
Due in over three years through four years | 5,216 | 6,592 |
Due in over four years through five years | 1,885 | 5,614 |
Due in over five years | 304 | 1,055 |
Total certificates of deposit | $ 341,014 | $ 343,089 |
Borrowed Funds and Subordinat_3
Borrowed Funds and Subordinated Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||
Federal Home Loan Bank Borrowings | $ 100,492 | $ 89,000 | $ 10,671 |
Subordinated debt | $ 14,860 | $ 14,847 | $ 14,834 |
Subordinated Debt, Weighted Average Interest Rate | 6.23% | 6.23% | 6.26% |
Total borrowed funds and subordinated debt, amount | $ 115,352 | $ 103,847 | $ 25,505 |
Total borrowed funds and subordinated debt, Average Rate | 3.13% | 2.21% | 3.98% |
Weighted Average | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank Borrowings,Weighted Average Interest Rate | 2.67% | 1.54% | 0.80% |
Borrowed Funds and Subordinat_4
Borrowed Funds and Subordinated Debt - Textual (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||||
FHLB overnight borrowings | $ 100,000,000 | |||
FHLB overnight borrowings, weighted average rate | 2.68% | |||
Long-term Federal Home Loan Bank Advances | $ 492,000 | |||
Long-term Federal Home Loan Bank, Advances, Interest Rate | 0.00% | |||
Maximum FHLB and other borrowings outstanding at any month end | $ 100,500,000 | $ 149,300,000 | $ 43,700,000 | |
Subordinated debt | $ 14,860,000 | $ 14,847,000 | $ 14,834,000 | |
Fixed-to Floating Rate Subordinated Notes | ||||
Debt Instrument [Line Items] | ||||
Subordinated debt | $ 15,000,000 | |||
Subordinated debt, rate | 6.00% | |||
Original debt issuance costs | $ 190,000 | |||
Line of credit | FHLB | ||||
Debt Instrument [Line Items] | ||||
Remaining borrowing capacity at FHLB | $ 355,000,000 | |||
Line of credit | Federal Reserve Bank of Boston | ||||
Debt Instrument [Line Items] | ||||
Remaining borrowing capacity at FRB | $ 140,000,000 | |||
London Interbank Offered Rate (LIBOR) [Member] | Fixed-to Floating Rate Subordinated Notes | ||||
Debt Instrument [Line Items] | ||||
Fixed to Floating Rate Conversion Date | Jan. 31, 2025 | |||
Spread over LIBOR fixed to floating rate note, rate | 3.90% |
Borrowed Funds and Subordinat_5
Borrowed Funds and Subordinated Debt - Average Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |||
FHLB advances, Average Balance | $ 22,250 | $ 49,546 | $ 14,551 |
FHLB advances, Average Rate | 1.72% | 1.19% | 0.55% |
Other borrowings, Average Balance | $ 0 | $ 0 | $ 107 |
Other borrowings, Average Rate | 0.00% | 0.00% | 0.61% |
Total borrowed funds, Average Balance | $ 22,250 | $ 49,546 | $ 14,658 |
Total borrowed funds, Average Rate | 1.72% | 1.19% | 0.55% |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)instrumentloan | Dec. 31, 2017USD ($)instrumentloan | Dec. 31, 2016USD ($) | |
Derivative [Line Items] | |||
Number of Participation Loans with Swap Contingent Liabilities | loan | 1 | 2 | |
Interest-rate swaps | |||
Derivative [Line Items] | |||
Gain (Loss) on Interest Rate Swaps | $ 0 | $ 0 | $ 0 |
Number of Interest Rate Swaps | instrument | 8 | 6 | |
Aggregate notional value of interest-rate swaps | $ 37,700,000 | $ 29,400,000 | |
Fair Value of Interest-Rate Swap Assets | 723,000 | 568,000 | |
Fair Value of Interest-Rate Swap Liabilities | 723,000 | 568,000 | |
Counterparty Credit Risk Exposure on Interest Rate Swaps | 678,000 | 543,000 | |
Collateral Received for Interest-rate Swaps | 850,000 | 480,000 | |
Receive Fixed Pay Variable | Interest-rate swaps | |||
Derivative [Line Items] | |||
Fair Value of Interest-Rate Swap Assets | 45,000 | 25,000 | |
Fair Value of Interest-Rate Swap Liabilities | 723,000 | 568,000 | |
Pay Fixed Receive Variable | Interest-rate swaps | |||
Derivative [Line Items] | |||
Fair Value of Interest-Rate Swap Assets | 678,000 | 543,000 | |
Fair Value of Interest-Rate Swap Liabilities | 0 | 0 | |
Gross Amount Interest Rate Swap Asset Recognized | 723,000 | 568,000 | |
Gross Amount Interest-Rate offset in Statement of Financial Position | $ 45,000 | $ 25,000 |
Committments, Contingencies a_3
Committments, Contingencies and Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)payment | Dec. 31, 2017USD ($) | |
Other Commitments [Line Items] | ||
Commitments to Originate Loans | $ 71,586 | $ 13,830 |
Commitments to Sell Residential Mortgage Loans | 701 | 2,286 |
Letters of Credit | 23,482 | 21,576 |
Residential | ||
Other Commitments [Line Items] | ||
Commitments to Originate Loans for Sale | $ 0 | 2,078 |
Early payment default period | payment | 4 | |
Commercial real estate | ||
Other Commitments [Line Items] | ||
Financial instruments with off-balance sheet credit risk | $ 39,311 | 26,947 |
Commercial and industrial | ||
Other Commitments [Line Items] | ||
Financial instruments with off-balance sheet credit risk | 453,381 | 432,731 |
Commercial and residential construction | ||
Other Commitments [Line Items] | ||
Financial instruments with off-balance sheet credit risk | 240,019 | 209,916 |
Home Equity | ||
Other Commitments [Line Items] | ||
Financial instruments with off-balance sheet credit risk | 100,227 | 94,012 |
Consumer Loan | ||
Other Commitments [Line Items] | ||
Financial instruments with off-balance sheet credit risk | $ 4,270 | $ 4,290 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | Jun. 23, 2016 | Jun. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Class of Stock [Line Items] | ||||||
Common stock, shares authorized | 40,000,000 | 40,000,000 | ||||
Common Stock, par value | $ 0.01 | $ 0.01 | ||||
Common Stock, Shares, Outstanding | 11,708,218 | 11,609,853 | ||||
Common Stock, shares issued | 11,708,218 | 11,609,853 | ||||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | ||||
Preferred stock, par value | $ 0.01 | $ 0.01 | ||||
Preferred Stock, shares Issued | 0 | 0 | ||||
Unvested participating restricted stock awards | 91,708 | 117,219 | ||||
Common stock issued under direct stock purchase plan, value | $ 94,000 | $ 70,000 | $ 38,000 | |||
Shareholder subscription rights and community offering, price per share | $ 21.50 | |||||
Maximum amount that was available to be raised under shelf registration | $ 40,000,000 | |||||
Shares issued in shareholder subscription rights and community offering | 930,232 | |||||
Gross proceeds from shareholder subscription rights and community offering | 20,000,000 | |||||
Net proceeds from shareholder subscription rights offering and community offering | $ 19,700,000 | |||||
Common stock dividend paid | 6,771,000 | 6,241,000 | 5,684,000 | |||
Common stock issued under dividend reinvestment plan | 1,328,000 | 1,494,000 | 1,381,000 | |||
Retained Earnings | ||||||
Class of Stock [Line Items] | ||||||
Common stock dividend paid | $ (6,771,000) | $ (6,241,000) | $ (5,684,000) | |||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Common Stock, Shares, Outstanding | 11,708,218 | 11,609,853 | 11,475,742 | 10,377,787 | ||
Common stock issued under direct stock purchase plan, shares | 2,652 | 2,014 | 1,562 | |||
Common stock issued under dividend reinvestment plan | 37,999 | 44,752 | 53,516 | |||
Common stock issued under dividend reinvestment plan | $ 0 | $ 0 | $ 1,000 | |||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Votes Per Share, Number | 1 | |||||
Series A Junior Participating Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Amount of a share allowed to be purchased under right to purchase | 0.01 | |||||
Price per one one-hundredth of a share | $ 122.50 | |||||
Minimum acquisition percentage to trigger the exercise of the right to purchase | 10.00% |
Stockholders' Equity - Regulato
Stockholders' Equity - Regulatory Capital Requirements (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 31, 2016 | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Capital Conservation Buffer on Regulatory Risk-Based Requirements, Phase-in | 1.875% | 1.25% | 0.625% | ||
Total Capital, Actual, Amount | $ 297,402 | $ 270,826 | |||
Total Capital (to risk weighted assets), Actual, Ratio | 11.77% | 11.21% | |||
Total Capital, Minimum Capital for Capital Adequacy Purposes, Amount | $ 202,172 | $ 193,327 | |||
Total Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 8.00% | [1] | 8.00% | ||
Tier 1 Risk Based Capital, Actual, Amount | $ 250,925 | $ 225,738 | |||
Tier 1 Risk Based Capital (to risk weighted assets), Actual, Ratio | 9.93% | 9.34% | |||
Tier 1 Risk Based Capital, Minimum Capital for Capital Adequacy Purposes, Amount | $ 151,629 | $ 144,995 | |||
Tier 1 Risk Based Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 6.00% | [1] | 6.00% | ||
Tier 1 Leverage Capital, Actual, Amount | $ 250,925 | $ 225,738 | |||
Tier 1 Leverage Capital (to average assets), Actual, Ratio | 8.56% | 8.22% | |||
Tier 1 Leverage Capital, Minimum Capital for Capital Adequacy Purposes, Amount | $ 117,198 | $ 109,838 | |||
Tier 1 Leverage Capital (to average assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 4.00% | [1] | 4.00% | ||
Common Equity Tier 1 Risk Based Capital, Actual, Amount | $ 250,925 | $ 225,738 | |||
Common Equity Tier 1 Risk Based Capital (to risk weighted assets), Actual, Ratio | 9.93% | 9.34% | |||
Common Equity Tier 1 Risk Based Capital, Minimum Capital for Capital Adequacy Purposes, Amount | $ 113,722 | $ 108,747 | |||
Common Equity Tier 1 Risk Based Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 4.50% | [1] | 4.50% | ||
The Bank | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Total Capital, Actual, Amount | $ 297,162 | $ 270,150 | |||
Total Capital (to risk weighted assets), Actual, Ratio | 11.76% | 11.18% | |||
Total Capital, Minimum Capital for Capital Adequacy Purposes, Amount | $ 202,172 | $ 193,301 | |||
Total Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 8.00% | [1] | 8.00% | ||
Total Capital, Minimum Capital To Be Well Capitalized, Amount | $ 252,715 | $ 241,626 | |||
Total Capital (to risk weighted assets), Minimum Capital To Be Well Capitalized, Ratio | [2] | 10.00% | 10.00% | ||
Tier 1 Risk Based Capital, Actual, Amount | $ 265,545 | $ 239,910 | |||
Tier 1 Risk Based Capital (to risk weighted assets), Actual, Ratio | 10.51% | 9.93% | |||
Tier 1 Risk Based Capital, Minimum Capital for Capital Adequacy Purposes, Amount | $ 151,629 | $ 144,976 | |||
Tier 1 Risk Based Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 6.00% | [1] | 6.00% | ||
Tier 1 Risk Based Capital, Minimum Capital To Be Well Capitalized, Amount | $ 202,172 | $ 193,301 | |||
Tier 1 Risk Based Capital (to risk weighted assets), Minimum Capital To Be Well Capitalized, Ratio | [2] | 8.00% | 8.00% | ||
Tier 1 Leverage Capital, Actual, Amount | $ 265,545 | $ 239,910 | |||
Tier 1 Leverage Capital (to average assets), Actual, Ratio | 9.06% | 8.74% | |||
Tier 1 Leverage Capital, Minimum Capital for Capital Adequacy Purposes, Amount | $ 117,198 | $ 109,837 | |||
Tier 1 Leverage Capital (to average assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 4.00% | [1] | 4.00% | ||
Tier 1 Leverage Capital, Minimum Capital To Be Well Capitalized, Amount | $ 146,498 | $ 137,296 | |||
Tier 1 Leverage Capital (to average assets), Minimum Capital To Be Well Capitalized, Ratio | [2] | 5.00% | 5.00% | ||
Common Equity Tier 1 Risk Based Capital, Actual, Amount | $ 265,545 | $ 239,910 | |||
Common Equity Tier 1 Risk Based Capital (to risk weighted assets), Actual, Ratio | 10.51% | 9.93% | |||
Common Equity Tier 1 Risk Based Capital, Minimum Capital for Capital Adequacy Purposes, Amount | $ 113,722 | $ 108,732 | |||
Common Equity Tier 1 Risk Based Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 4.50% | [1] | 4.50% | ||
Common Equity Tier 1 Risk Based Capital, Minimum Capital To Be Well Capitalized, Amount | $ 164,265 | $ 157,057 | |||
Common Equity Tier 1 Risk Based Capital (to risk weighted assets), Minimum Capital To Be Well Capitalized, Ratio | [2] | 6.50% | 6.50% | ||
[1] | Before application of the capital conservation buffer of 1.875% as of December 31, 2018 and 1.25% as of December 31, 2017, see discussion below. | ||||
[2] | For the Bank to qualify as "well-capitalized," it must maintain at least the minimum ratios listed. This prompt corrective action framework requirement does not apply to the Company. |
Stockholders' Equity - Basel II
Stockholders' Equity - Basel III Minimum Capital Adequacy Requirements after Full Phase In (Details) | Dec. 31, 2019 | Dec. 31, 2018 | [1] | Dec. 31, 2017 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Total Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 8.00% | 8.00% | ||
Tier 1 Risk Based Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 6.00% | 6.00% | ||
Tier 1 Leverage Capital (to average assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% | ||
Common Equity Tier 1 Risk Based Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% | ||
Basel III Minimum Requirements Forecast [Member] | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Total Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 10.50% | |||
Tier 1 Risk Based Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 8.50% | |||
Tier 1 Leverage Capital (to average assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 4.00% | |||
Common Equity Tier 1 Risk Based Capital (to risk weighted assets), Minimum Capital for Capital Adequacy Purposes, Ratio | 7.00% | |||
Basel III Additional Capital Conservation Buffer at full phase-in (percent) | 2.50% | |||
[1] | Before application of the capital conservation buffer of 1.875% as of December 31, 2018 and 1.25% as of December 31, 2017, see discussion below. |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Contribution Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Company's percent match on 401(K) defined contribution plan | 70.00% | 60.00% | 60.00% |
Maximum percentage of employee contribution matched by the Company | 6.00% | 6.00% | 6.00% |
Minimum age to be eligible for 401(k) plan | 18 years | ||
Number of minimum hours required to work for 401(k) plan eligibility | 1 hour | ||
Employer's matching contribution, annual vesting percentage for 401(k) plan | 25.00% | ||
Number of years to be fully vested for 401(k) plan | 4 years | ||
Expense for the 401(k) plan match | $ 1,300 | $ 965 | $ 938 |
Employee Benefit Plans - Supple
Employee Benefit Plans - Supplemental Retirement Plan (SERP) (Details) - Supplemental Employee Retirement Plan $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($)officer | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of active executive officers under plan | officer | 2 | |||
Number of former executive officers under plan | officer | 1 | |||
Term of SERP benefits | 20 years | |||
Accrual for benefit obligation for following year | $ 100 | |||
Benefit obligation at beginning of year | 2,372 | $ 2,502 | $ 2,654 | |
Interest cost | 110 | 110 | 124 | |
Actuarial (gain) loss | (32) | 36 | 0 | |
Net periodic benefit cost(benefit) | 78 | 146 | 124 | |
Benefits paid | (276) | (276) | (276) | |
Benefit obligation at end of year | 2,174 | 2,372 | 2,502 | |
Accrued liability at end of year | $ (2,174) | $ (2,372) | $ (2,502) | |
Discount rate used for benefit obligation | [1] | 4.75% | 4.50% | 4.75% |
[1] | Management utilizes the Moody's 20 year AA corporate bond rates to establish the reasonableness of the discount rate used. The Company reviews and periodically updates the discount rate to reflect changes in bond market rates. The impact of the discount rate change is reflected as the actuarial gain or loss. |
Employee Benefit Plans - Expect
Employee Benefit Plans - Expected Future Benefit Payments for SERP (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Retirement Benefits [Abstract] | |
2019 | $ 276 |
2020 | 276 |
2021 | 276 |
2022 | 276 |
2023 | 276 |
2024-2028 | $ 1,269 |
Employee Benefit Plans - Supp_2
Employee Benefit Plans - Supplemental Life Insurance (Details) - Supplemental Life Insurance Benefit - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Other Postretirement Benefit Plan Disclosures [Line Items] | ||||
Benefit obligation at beginning of year | $ 2,032 | $ 1,895 | $ 1,792 | |
Service cost | (13) | (11) | (9) | |
Interest cost | 94 | 91 | 88 | |
Actuarial (gain) loss | (29) | 57 | 24 | |
Net periodic benefit cost(benefit) | 52 | 137 | 103 | |
Benefit obligation at end of year | 2,084 | 2,032 | 1,895 | |
Accrued liability at end of year | $ (2,084) | $ (2,032) | $ (1,895) | |
Discount rate used for benefit obligation | [1] | 4.75% | 4.50% | 4.75% |
Accrual for benefit obligation for following year | $ 199 | |||
[1] | Management utilizes the Moody's 20 year AA corporate bond rates to establish the reasonableness of the discount rate used. The Company reviews and periodically updates the discount rate to reflect changes in bond market rates. The impact of the discount rate change is reflected as the actuarial gain or loss. |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options, Stock Awards, and Stock in Lieu of Directors' Fees (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Jan. 31, 2019shares | Jan. 31, 2018shares | Jan. 31, 2017shares | Dec. 31, 2018USD ($)plansshares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 02, 2018$ / shares | Jan. 03, 2017$ / shares | Jan. 04, 2016$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of individual stock incentive plans | plans | 2 | ||||||||
Stock-based compensation expense | $ 1,848 | $ 1,753 | $ 2,380 | ||||||
Tax benefit recognized related to stock-based compensation expense | 519 | 716 | 972 | ||||||
Income tax benefit for stock compensation in income statement | $ (302) | (922) | 0 | ||||||
Tax benefit from stock compensation | 789 | ||||||||
Price as a percentage of fair market value that stock options may not be granted below | 100.00% | ||||||||
Percentage of ownership of common stock by participants that if greater causes greater grant price | 10.00% | ||||||||
Price as a percentage of fair market value that stock options may not be granted below for anyone who owns more than 10% common stock | 110.00% | ||||||||
Expiration period of options granted for those who own more than 10% common stock | 5 years | ||||||||
Proceeds from stock option exercises | $ 308 | 355 | 546 | ||||||
Total intrinsic value of options exercised | 452 | 1,600 | 1,000 | ||||||
Cash paid by the Company to net settle employee taxes on restricted stock and options | 559 | 931 | 442 | ||||||
Fair value of options vested | 236 | 246 | 237 | ||||||
Directors fee expense | 816 | 747 | 661 | ||||||
Number of shares issued in lieu of cash to directors | shares | 7,326 | 12,992 | |||||||
Fair market share price | $ / shares | $ 33.5 | $ 38.39 | $ 22.04 | ||||||
Subsequent Event | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares issued in lieu of cash to directors | shares | 7,470 | ||||||||
Non-Employee Director | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Tax benefit recognized related to stock-based compensation expense | 70 | 115 | 117 | ||||||
Stock options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock-based compensation expense | 200 | 204 | 267 | ||||||
Tax benefit recognized related to stock-based compensation expense | $ 56 | $ 83 | $ 109 | ||||||
Term in years | 10 years | 10 years | 10 years | ||||||
Cash paid by the Company to net settle employee taxes on restricted stock and options | $ 39 | $ 386 | $ 158 | ||||||
Unrecognized stock-based compensation expense | $ 313 | ||||||||
Remaining vesting period unrecognized compensation expense is to be recognized | 2 years 4 months 24 days | ||||||||
Restricted Stock and Common Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock-based compensation expense | $ 1,400 | 1,300 | 1,800 | ||||||
Tax benefit recognized related to stock-based compensation expense | 393 | 518 | 746 | ||||||
Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Cash paid by the Company to net settle employee taxes on restricted stock and options | 520 | 545 | 284 | ||||||
Unrecognized stock-based compensation expense | $ 1,500 | ||||||||
Remaining vesting period unrecognized compensation expense is to be recognized | 2 years 1 month 6 days | ||||||||
Restricted Stock | Employee | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting period | 4 years | ||||||||
Restricted Stock | Non-Employee Director | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting period | 2 years | ||||||||
Common stock in lieu of cash | Non-Employee Director | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock-based compensation expense | $ 250 | $ 281 | 286 | ||||||
Vesting, Year Two | Stock options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options granted, vesting percentage | 50.00% | ||||||||
Vesting, Year Four | Stock options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Options granted, vesting percentage | 50.00% | ||||||||
Additional Paid-in Capital | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Tax benefit from stock compensation | $ 789 | ||||||||
2009 Stock Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares remain available for future grants | shares | 67,857 | ||||||||
2016 Stock Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares remain available for future grants | shares | 350,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Options Granted (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted | 14,755 | 15,009 | 31,047 |
Options granted, per share weighted average fair value | $ 11.98 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term in years | 10 years | 10 years | 10 years |
Expected volatility | 37.00% | 40.00% | 42.00% |
Market price on date of grant | $ 34.33 | $ 30.46 | $ 21.91 |
Options granted, per share weighted average fair value | $ 11.98 | $ 11.34 | $ 7.91 |
Weighted Average | Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 2.10% | 2.09% | 3.02% |
Expected life in years | 6 years 6 months | 7 years | 7 years |
Risk-free interest rate | 2.86% | 2.35% | 1.91% |
Fair Value as a percentage of market value at grant date | 35.00% | 37.00% | 36.00% |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Outstanding Options, beginning balance | 194,218 | ||
Stock options granted | 14,755 | 15,009 | 31,047 |
Exercised, Options | 24,842 | ||
Forfeited/Expired, Options | 286 | ||
Outstanding Options, ending balance | 183,845 | 194,218 | |
Outstanding Options, Weighted Average Exercise Price, beginning balance | $ 19.29 | ||
Granted, Weighted Average Exercise Price | 34.33 | ||
Exercised, Weighted Average Exercise Price | 16.30 | ||
Forfeited/Expired, Weighted Average Exercise Price | 23.57 | ||
Outstanding Options, Weighted Average Exercise Price, ending balance | $ 20.90 | $ 19.29 | |
Outstanding Options, Weighted Average Remaining Life | 4 years 10 months 24 days | 5 years | |
Options Outstanding, Aggregate Intrinsic Value, beginning balance | $ 2,866 | ||
Options Outstanding, Aggregate Intrinsic Value, ending balance | $ 2,102 | $ 2,866 | |
Vested and Exercisable, ending balance, Options | 127,837 | ||
Vested and Exercisable, ending balance, Weighted Average Exercise Price | $ 18.14 | ||
Vested and Exercisable, ending balance, Weighted Average Remaining Life | 3 years 7 months 6 days | ||
Vested and Exercisable, ending balance, Aggregate Intrinsic Value | $ 1,793 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Unvested Options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of Unvested Options [Abstract] | |||
Unvested, options, beginning balance | 70,549 | ||
Stock options granted | 14,755 | 15,009 | 31,047 |
Options vested, number of shares | 29,035 | ||
Unvested options forfeited, Number of Shares | 261 | ||
Unvested, options, ending balance | 56,008 | 70,549 | |
Unvested options, beginning balance, weighted average grant date fair value | $ 8.81 | ||
Options granted, per share weighted average fair value | 11.98 | ||
Options, vested, weighted average grant date fair value | 8.12 | ||
Unvested Options forfeited, weighted average grant date fair value | 9.13 | ||
Unvested options, ending balance, weighted average grant date fair value | $ 10 | $ 8.81 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Grants (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards in the period | 44,505 | 48,820 | 62,429 |
Weighted Average Grant Date Fair Value, Stock Awards | $ 34.33 | $ 30.46 | $ 21.90 |
Non-Employee Director | Two year vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards in the period | 7,280 | 6,944 | 9,060 |
Employee | Four year vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards in the period | 16,666 | 16,253 | 18,298 |
Employee | Performance-based vesting | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards in the period | 20,559 | 25,623 | 35,071 |
Stock-Based Compensation - Re_2
Stock-Based Compensation - Restricted Stock Award Activity and Weighted Average Price (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested, beginning balance, Restricted Stock | 117,219 | ||
Unvested, ending balance, Restricted Stock | 91,708 | 117,219 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested, beginning balance, Restricted Stock | 117,219 | ||
Stock awards in the period | 44,505 | 48,820 | 62,429 |
Vested/released, Restricted Stock | 68,954 | ||
Forfeited, Restricted Stock | 1,062 | ||
Unvested, ending balance, Restricted Stock | 91,708 | 117,219 | |
Unvested, beginning balance, Weighted Average Grant Price Per Share | $ 25.09 | ||
Weighted Average Grant Date Fair Value, Stock Awards | 34.33 | $ 30.46 | $ 21.90 |
Vested/released, Weighted Average Grant Price Per Share | 23.95 | ||
Forfeited, Weighted Average Grant Price Per Share | 28.92 | ||
Unvested, ending balance, Weighted Average Grant Price Per Share | $ 30.39 | $ 25.09 | |
Unvested, Weighted Average Remaining Life In Years | 1 year 7 months 6 days | 1 year 4 months 23 days | |
Unvested, Aggregate Intrinsic Value | $ 2,949,000 | $ 3,991,000 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current tax expense: | |||||||||||
Federal | $ 6,485 | $ 8,222 | $ 8,178 | ||||||||
State | 2,835 | 2,271 | 2,244 | ||||||||
Total current tax expense | 9,320 | 10,493 | 10,422 | ||||||||
Deferred tax expense (benefit): | |||||||||||
Federal | (392) | 5,646 | (984) | ||||||||
State | (112) | 89 | (277) | ||||||||
Total deferred tax expense/ (benefit) | (504) | 5,735 | (1,261) | ||||||||
Total income tax expense | $ 2,184 | $ 2,429 | $ 2,269 | $ 1,934 | $ 8,505 | $ 3,014 | $ 2,845 | $ 1,864 | $ 8,816 | $ 16,228 | $ 9,161 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 21.00% | 35.00% | 35.00% | ||||||||
Computed income tax expense at statutory rate | $ 7,916 | $ 12,467 | $ 9,769 | ||||||||
State income taxes, net of federal tax benefit | 2,151 | 1,534 | 1,279 | ||||||||
Tax exempt income, net of disallowance | (1,034) | (1,665) | (1,559) | ||||||||
Bank Owned Life Insurance, net | (141) | (245) | (261) | ||||||||
Impact in tax expense of change in federal statutory rate on deferred tax assets | 0 | 4,761 | 0 | ||||||||
Income tax benefit for stock compensation in income statement | (302) | (922) | 0 | ||||||||
Other | 226 | 298 | (67) | ||||||||
Total income tax expense | $ 2,184 | $ 2,429 | $ 2,269 | $ 1,934 | $ 8,505 | $ 3,014 | $ 2,845 | $ 1,864 | $ 8,816 | $ 16,228 | $ 9,161 |
Effective income tax rate | 23.40% | 45.60% | 32.80% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Income Taxes [Line Items] | |||
Impact in tax expense of change in federal statutory rate on deferred tax assets | $ 0 | $ 4,761 | $ 0 |
Federal statutory tax rate | 21.00% | 35.00% | 35.00% |
Total income taxes paid, net | $ 8,694 | $ 10,459 | $ 10,868 |
Federal Low Income Housing Tax Credit | |||
Schedule of Income Taxes [Line Items] | |||
Tax credit carryforward recognized during period | 71 | $ 71 | $ 71 |
Anticipated additional tax credits | $ 248 | ||
Number of years tax credit to be recognized over | 4 years |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Asset and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Components of Deferred Tax Assets [Abstract] | ||
Allowance for loan losses | $ 9,515 | $ 9,252 |
Depreciation | 2,118 | 1,831 |
Net fair value losses on equity securities | 43 | 0 |
Net unrealized loss on debt securities | 402 | 0 |
Supplemental employee retirement plans | 611 | 667 |
Non-accrual interest | 624 | 460 |
Stock-based compensation expense | 555 | 608 |
Other | 359 | 323 |
Total | 14,227 | 13,141 |
Components of Deferred Tax Liabilities [Abstract] | ||
Goodwill | 1,590 | 1,590 |
Net unrealized gains on debt securities | 0 | 90 |
Deferred origination costs | 721 | 710 |
Other | 169 | 0 |
Total | 2,480 | 2,390 |
Net deferred tax asset | $ 11,747 | $ 10,751 |
Earnings per share (Details)
Earnings per share (Details) - shares | Jun. 23, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Earnings Per Share [Abstract] | ||||
Basic weighted average common shares outstanding | 11,679,520 | 11,568,430 | 10,966,333 | |
Dilutive shares | 70,942 | 83,333 | 73,178 | |
Diluted weighted average common shares outstanding | 11,750,462 | 11,651,763 | 11,039,511 | |
Shares issued in shareholder subscription rights and community offering | 930,232 | |||
Antidilutive Shares Excluded from EPS | 29,260 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Specific allowance for collateral dependent impaired loans | $ 1,600 | $ 872 |
Letter of Credit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortization period of estimated fair value on letters of credit | 1 year | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Interest-rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of liabilities | $ 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 1,448 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | FHLB Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | Interest-rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Interest-rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of liabilities | 723 | 568 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 431,473 | 405,206 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | FHLB Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | Interest-rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 723 | 568 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Interest-rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | FHLB Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 5,357 | 5,215 |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | Interest-rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans (collateral dependent), Fair Value | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans (collateral dependent), Fair Value | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans (collateral dependent), Fair Value | 2,574 | 2,696 |
Fair Value | Fair Value, Measurements, Recurring | Interest-rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of liabilities | 723 | 568 |
Fair Value | Fair Value, Measurements, Recurring | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 431,473 | 405,206 |
Fair Value | Fair Value, Measurements, Recurring | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 1,448 | |
Fair Value | Fair Value, Measurements, Recurring | FHLB Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 5,357 | 5,215 |
Fair Value | Fair Value, Measurements, Recurring | Interest-rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 723 | 568 |
Fair Value | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans (collateral dependent), Fair Value | $ 2,574 | $ 2,696 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative (Details) - Fair Value, Inputs, Level 3 $ in Thousands | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value, Measurements, Recurring | FHLB Stock | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value of assets | $ 5,357 | $ 5,215 | |
Fair Value, Measurements, Recurring | FHLB Stock | FHLB Stated Par Value | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair value of assets | 5,357 | 5,215 | |
Fair Value, Measurements, Nonrecurring | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans (collateral dependent), Fair Value | 2,574 | 2,696 | |
Fair Value, Measurements, Nonrecurring | Impaired loans (collateral dependent) | Appraisal of collateral | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans (collateral dependent), Fair Value | [1] | $ 2,574 | $ 2,696 |
Appraisal adjustments | Fair Value, Measurements, Nonrecurring | Impaired loans (collateral dependent) | Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, collateral dependent, measurement input | 0.05 | ||
Appraisal adjustments | Fair Value, Measurements, Nonrecurring | Impaired loans (collateral dependent) | Maximum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, collateral dependent, measurement input | 0.5 | ||
[1] | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. |
Fair Value Measurements - Balan
Fair Value Measurements - Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Carrying Amount | ||
Financial assets: | ||
Loans held for sale | $ 701 | $ 208 |
Loans, net | 2,353,657 | 2,236,989 |
Financial liabilities: | ||
Borrowed funds | 100,492 | 89,000 |
Subordinated debt | 14,860 | 14,847 |
Carrying Amount | Certificates of deposit | ||
Financial liabilities: | ||
Certificates of deposit | 341,014 | 343,089 |
Fair Value | ||
Financial assets: | ||
Loans held for sale | 710 | 208 |
Loans, net | 2,331,076 | 2,236,169 |
Financial liabilities: | ||
Borrowed funds | 100,312 | 88,996 |
Subordinated debt | 14,300 | 14,208 |
Fair Value | Certificates of deposit | ||
Financial liabilities: | ||
Certificates of deposit | 339,308 | 341,765 |
Fair Value, Inputs, Level 1 | ||
Financial assets: | ||
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Financial liabilities: | ||
Borrowed funds | 0 | 0 |
Subordinated debt | 0 | 0 |
Fair Value, Inputs, Level 1 | Certificates of deposit | ||
Financial liabilities: | ||
Certificates of deposit | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Financial assets: | ||
Loans held for sale | 710 | 208 |
Loans, net | 0 | 0 |
Financial liabilities: | ||
Borrowed funds | 100,312 | 88,996 |
Subordinated debt | 0 | 0 |
Fair Value, Inputs, Level 2 | Certificates of deposit | ||
Financial liabilities: | ||
Certificates of deposit | 339,308 | 341,765 |
Fair Value, Inputs, Level 3 | ||
Financial assets: | ||
Loans held for sale | 0 | 0 |
Loans, net | 2,331,076 | 2,236,169 |
Financial liabilities: | ||
Borrowed funds | 0 | 0 |
Subordinated debt | 14,300 | 14,208 |
Fair Value, Inputs, Level 3 | Certificates of deposit | ||
Financial liabilities: | ||
Certificates of deposit | $ 0 | $ 0 |
Parent Company Only Financial_3
Parent Company Only Financial Statements - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||||
Cash | $ 63,120 | $ 54,806 | $ 50,475 | $ 51,495 |
Total assets | 2,964,358 | 2,817,564 | ||
Liabilities | ||||
Subordinated debt | 14,860 | 14,847 | 14,834 | |
Accrued interest payable | 979 | 478 | ||
Other liabilities | 27,948 | 40,067 | ||
Total liabilities | 2,709,061 | 2,585,754 | ||
Stockholders' Equity | ||||
Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued | 0 | 0 | ||
Common stock $0.01 par value per share; 40,000,000 shares authorized; 11,708,218 shares issued and outstanding at December 31, 2018 and 11,609,853 shares issued and outstanding at December 31, 2017 | 117 | 116 | ||
Additional paid-in capital | 91,281 | 88,205 | ||
Retained earnings | 165,183 | 143,073 | ||
Accumulated other comprehensive (loss) income | (1,284) | 416 | ||
Total stockholders' equity | 255,297 | 231,810 | 214,786 | 180,327 |
Total liabilities and stockholders' equity | 2,964,358 | 2,817,564 | ||
Parent | ||||
Assets | ||||
Cash | 123 | 345 | $ 497 | $ 2,737 |
Investment in subsidiaries | 269,917 | 245,982 | ||
Other assets | 198 | 411 | ||
Total assets | 270,238 | 246,738 | ||
Liabilities | ||||
Subordinated debt | 14,860 | 14,847 | ||
Accrued interest payable | 78 | 78 | ||
Other liabilities | 3 | 3 | ||
Total liabilities | 14,941 | 14,928 | ||
Stockholders' Equity | ||||
Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued | 0 | 0 | ||
Common stock $0.01 par value per share; 40,000,000 shares authorized; 11,708,218 shares issued and outstanding at December 31, 2018 and 11,609,853 shares issued and outstanding at December 31, 2017 | 117 | 116 | ||
Additional paid-in capital | 91,281 | 88,205 | ||
Retained earnings | 165,183 | 143,073 | ||
Accumulated other comprehensive (loss) income | (1,284) | 416 | ||
Total stockholders' equity | 255,297 | 231,810 | ||
Total liabilities and stockholders' equity | $ 270,238 | $ 246,738 |
Parent Company Only Financial_4
Parent Company Only Financial Statements - Balance Sheet (Additional) (Details) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Condensed Financial Statements, Captions [Line Items] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 11,708,218 | 11,609,853 |
Common Stock, Shares, Outstanding | 11,708,218 | 11,609,853 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Parent | ||
Condensed Financial Statements, Captions [Line Items] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 11,708,218 | 11,609,853 |
Common Stock, Shares, Outstanding | 11,708,218 | 11,609,853 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Parent Company Only Financial_5
Parent Company Only Financial Statements - Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Interest expense | $ 4,274 | $ 3,936 | $ 3,102 | $ 2,756 | $ 2,279 | $ 1,911 | $ 1,803 | $ 1,517 | $ 14,068 | $ 7,510 | $ 5,523 |
Income before income taxes | 8,684 | 10,411 | 9,843 | 8,759 | 11,225 | 8,520 | 8,440 | 7,436 | 37,697 | 35,621 | 27,912 |
Provision for (benefit from) income tax | 2,184 | 2,429 | 2,269 | 1,934 | 8,505 | 3,014 | 2,845 | 1,864 | 8,816 | 16,228 | 9,161 |
Net income | $ 6,500 | $ 7,982 | $ 7,574 | $ 6,825 | $ 2,720 | $ 5,506 | $ 5,595 | $ 5,572 | 28,881 | 19,393 | 18,751 |
Parent | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Equity in undistributed net income of subsidiaries | 25,635 | 16,922 | 19,313 | ||||||||
Dividend distributed by subsidiaries | 4,100 | 3,000 | 150 | ||||||||
Total income | 29,735 | 19,922 | 19,463 | ||||||||
Interest expense | 925 | 925 | 928 | ||||||||
Other operating expenses | 216 | 245 | 194 | ||||||||
Total operating expenses | 1,141 | 1,170 | 1,122 | ||||||||
Income before income taxes | 28,594 | 18,752 | 18,341 | ||||||||
Provision for (benefit from) income tax | (287) | (641) | (410) | ||||||||
Net income | $ 28,881 | $ 19,393 | $ 18,751 |
Parent Company Only Financial_6
Parent Company Only Financial Statements - Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Cash flows from operating activities: | ||||||||||||
Net income | $ 6,500 | $ 7,982 | $ 7,574 | $ 6,825 | $ 2,720 | $ 5,506 | $ 5,595 | $ 5,572 | $ 28,881 | $ 19,393 | $ 18,751 | |
Changes in: | ||||||||||||
Net cash provided by operating activities | 41,801 | 37,931 | 27,323 | |||||||||
Cash flows from investing activities: | ||||||||||||
Net cash used in investing activities | (162,826) | (279,143) | (252,508) | |||||||||
Cash flows from financing activities: | ||||||||||||
Cash dividends paid | (6,771) | (6,241) | (5,684) | |||||||||
Proceeds from issuance of common stock, net of expenses | 1,449 | 1,590 | 21,183 | |||||||||
Net settlement for employee taxes on restricted stock and options | (559) | (931) | (442) | |||||||||
Proceeds from stock option exercises | 308 | 355 | 546 | |||||||||
Tax benefit from stock-based compensation | 0 | 0 | 789 | |||||||||
Net cash provided by financing activities | 129,339 | 245,543 | 224,165 | |||||||||
Net (decrease) increase in cash and cash equivalents | 8,314 | 4,331 | (1,020) | |||||||||
Cash and cash equivalents, beginning of year | 54,806 | 50,475 | 54,806 | 50,475 | 51,495 | |||||||
Cash and cash equivalents, end of year | 63,120 | 54,806 | 63,120 | 54,806 | 50,475 | |||||||
Parent | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | 28,881 | 19,393 | 18,751 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Equity in undistributed net income of subsidiaries | (25,635) | (16,922) | (19,313) | |||||||||
Payment from subsidiary bank for stock compensation expense | 1,879 | 1,758 | 2,348 | |||||||||
Changes in: | ||||||||||||
Decrease (increase) in other assets | 213 | 832 | (697) | |||||||||
Decrease in other liabilities | 13 | 14 | 9 | |||||||||
Net cash provided by operating activities | 5,351 | 5,075 | 1,098 | |||||||||
Cash flows from investing activities: | ||||||||||||
Investment in subsidiary | 0 | 0 | [1] | (19,730) | ||||||||
Net cash used in investing activities | 0 | 0 | (19,730) | |||||||||
Cash flows from financing activities: | ||||||||||||
Cash dividends paid | (6,771) | (6,241) | (5,684) | |||||||||
Proceeds from issuance of common stock, net of expenses | 1,449 | 1,590 | 21,183 | |||||||||
Net settlement for employee taxes on restricted stock and options | (559) | (931) | (442) | |||||||||
Proceeds from stock option exercises | 308 | 355 | 546 | |||||||||
Tax benefit from stock-based compensation | 0 | 0 | 789 | |||||||||
Net cash provided by financing activities | (5,573) | (5,227) | 16,392 | |||||||||
Net (decrease) increase in cash and cash equivalents | (222) | (152) | (2,240) | |||||||||
Cash and cash equivalents, beginning of year | $ 345 | $ 497 | 345 | 497 | 2,737 | |||||||
Cash and cash equivalents, end of year | $ 123 | $ 345 | $ 123 | $ 345 | $ 497 | |||||||
[1] | The outflow in investment in subsidiary in 2016 reflects the Company's investment in the Bank from the Offering. See Note 10 "Stockholders' Equity," above, for further information. |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest and dividend income | $ 32,464 | $ 31,348 | $ 30,320 | $ 28,771 | $ 28,285 | $ 27,045 | $ 25,338 | $ 24,364 | $ 122,903 | $ 105,032 | $ 92,315 |
Interest expense | 4,274 | 3,936 | 3,102 | 2,756 | 2,279 | 1,911 | 1,803 | 1,517 | 14,068 | 7,510 | 5,523 |
Net interest income | 28,190 | 27,412 | 27,218 | 26,015 | 26,006 | 25,134 | 23,535 | 22,847 | 108,835 | 97,522 | 86,792 |
Provision for loan losses | (400) | 750 | 300 | 1,600 | (200) | 1,225 | 280 | 125 | 2,250 | 1,430 | 2,993 |
Net interest income after provision for loan losses | 28,590 | 26,662 | 26,918 | 24,415 | 26,206 | 23,909 | 23,255 | 22,722 | 106,585 | 96,092 | 83,799 |
Non-interest income | 3,659 | 3,758 | 3,733 | 3,790 | 3,926 | 3,728 | 3,710 | 3,594 | |||
Net gains (losses) on sales of investment securities | (2,917) | (34) | 0 | 1 | 231 | (284) | 229 | 540 | (2,950) | 716 | 802 |
Non-interest expense | 20,648 | 19,975 | 20,808 | 19,447 | 19,138 | 18,833 | 18,754 | 19,420 | 80,878 | 76,145 | 70,328 |
Income before income taxes | 8,684 | 10,411 | 9,843 | 8,759 | 11,225 | 8,520 | 8,440 | 7,436 | 37,697 | 35,621 | 27,912 |
Provision for income taxes | 2,184 | 2,429 | 2,269 | 1,934 | 8,505 | 3,014 | 2,845 | 1,864 | 8,816 | 16,228 | 9,161 |
Net income | $ 6,500 | $ 7,982 | $ 7,574 | $ 6,825 | $ 2,720 | $ 5,506 | $ 5,595 | $ 5,572 | $ 28,881 | $ 19,393 | $ 18,751 |
Basic earnings per share | $ 0.56 | $ 0.68 | $ 0.65 | $ 0.59 | $ 0.23 | $ 0.48 | $ 0.48 | $ 0.48 | $ 2.47 | $ 1.68 | $ 1.71 |
Diluted earnings per share | $ 0.55 | $ 0.68 | $ 0.64 | $ 0.58 | $ 0.23 | $ 0.47 | $ 0.48 | $ 0.48 | $ 2.46 | $ 1.66 | $ 1.70 |