Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Bankwell Financial Group, Inc. | |
Entity Central Index Key | 0001505732 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 7,841,103 | |
Entity Current Reporting Status | Yes | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true |
CONSOLIDATED BALANCE SHEETS - (
CONSOLIDATED BALANCE SHEETS - (UNAUDITED) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 75,647 | $ 75,411 |
Federal funds sold | 3,237 | 2,701 |
Cash and cash equivalents | 78,884 | 78,112 |
Investment securities | ||
Marketable equity securities, at fair value | 2,090 | 2,009 |
Available for sale investment securities, at fair value | 93,017 | 93,154 |
Held to maturity investment securities, at amortized cost (fair values of $23,111 and $21,988 at June 30, 2019 and December 31, 2018, respectively) | 21,318 | 21,421 |
Total investment securities | 116,425 | 116,584 |
Loans receivable (net of allowance for loan losses of $13,890 at June 30, 2019 and $15,462 at December 31, 2018) | 1,551,620 | 1,586,775 |
Other real estate owned | 1,217 | 0 |
Accrued interest receivable | 6,165 | 6,375 |
Federal Home Loan Bank stock, at cost | 7,475 | 8,110 |
Premises and equipment, net | 29,060 | 19,771 |
Bank-owned life insurance | 41,178 | 40,675 |
Goodwill | 2,589 | 2,589 |
Other intangible assets | 251 | 290 |
Deferred income taxes, net | 5,596 | 4,347 |
Other assets | 19,205 | 10,037 |
Total assets | 1,859,665 | 1,873,665 |
Deposits | ||
Noninterest bearing deposits | 161,704 | 173,198 |
Interest bearing deposits | 1,316,027 | 1,329,046 |
Total deposits | 1,477,731 | 1,502,244 |
Advances from the Federal Home Loan Bank | 150,000 | 160,000 |
Subordinated debentures ($25,500 face, less unamortized debt issuance costs of $319 and $345 at June 30, 2019 and December 31, 2018, respectively) | 25,181 | 25,155 |
Accrued expenses and other liabilities | 29,813 | 12,070 |
Total liabilities | 1,682,725 | 1,699,469 |
Commitments and contingencies | ||
Shareholders' equity | ||
Common stock, no par value; 10,000,000 shares authorized, 7,841,103 and 7,842,271 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively | 120,064 | 120,527 |
Retained earnings | 63,801 | 54,706 |
Accumulated other comprehensive loss | (6,925) | (1,037) |
Total shareholders' equity | 176,940 | 174,196 |
Total liabilities and shareholders' equity | $ 1,859,665 | $ 1,873,665 |
CONSOLIDATED BALANCE SHEETS -_2
CONSOLIDATED BALANCE SHEETS - (UNAUDITED) (Parentheticals) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Held to maturity investment securities, fair value | $ 23,111,000 | $ 21,988,000 |
Allowance for loan losses | $ 13,890,000 | $ 15,462,000 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (shares) | 7,841,103 | 7,842,271 |
Common stock, shares outstanding (shares) | 7,841,103 | 7,842,271 |
Subordinated debentures | ||
Debt instrument face value of debt | $ 25,500,000 | $ 25,500,000 |
Unamortized debt issuance costs | $ 319,000 | $ 345,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest and dividend income | ||||
Interest and fees on loans | $ 19,540 | $ 18,114 | $ 39,636 | $ 35,532 |
Interest and dividends on securities | 992 | 975 | 1,989 | 1,910 |
Interest on cash and cash equivalents | 514 | 325 | 897 | 579 |
Total interest and dividend income | 21,046 | 19,414 | 42,522 | 38,021 |
Interest expense | ||||
Interest expense on deposits | 6,319 | 4,309 | 12,419 | 7,965 |
Interest expense on borrowings | 1,132 | 1,197 | 2,235 | 2,443 |
Total interest expense | 7,451 | 5,506 | 14,654 | 10,408 |
Net interest income | 13,595 | 13,908 | 27,868 | 27,613 |
(Credit) provision for loan losses | (841) | 310 | (646) | 323 |
Net interest income after (credit) provision for loan losses | 14,436 | 13,598 | 28,514 | 27,290 |
Noninterest income | ||||
Gains and fees from sales of loans | 617 | 315 | 706 | 685 |
Bank owned life insurance | 254 | 265 | 503 | 528 |
Net gain on sale of available for sale securities | 76 | 0 | 76 | 222 |
Other | 126 | 262 | 847 | 484 |
Total noninterest income | 1,336 | 1,107 | 2,644 | 2,440 |
Noninterest expense | ||||
Salaries and employee benefits | 4,555 | 4,539 | 9,391 | 9,567 |
Occupancy and equipment | 1,833 | 1,731 | 3,720 | 3,348 |
Data processing | 551 | 509 | 1,063 | 1,034 |
Professional services | 519 | 424 | 1,109 | 1,199 |
Marketing | 348 | 479 | 541 | 776 |
Director fees | 215 | 274 | 404 | 489 |
FDIC insurance | 76 | 203 | 199 | 417 |
Amortization of intangibles | 19 | 24 | 38 | 48 |
Other | 639 | 581 | 1,265 | 1,089 |
Total noninterest expense | 8,755 | 8,764 | 17,730 | 17,967 |
Income before income tax expense | 7,017 | 5,941 | 13,428 | 11,763 |
Income tax expense | 1,441 | 1,226 | 2,772 | 2,448 |
Net income | $ 5,576 | $ 4,715 | $ 10,656 | $ 9,315 |
Earnings Per Common Share: | ||||
Basic (in dollars per share) | $ 0.71 | $ 0.60 | $ 1.36 | $ 1.19 |
Diluted (in dollars per share) | $ 0.71 | $ 0.60 | $ 1.35 | $ 1.19 |
Weighted Average Common Shares Outstanding: | ||||
Basic (in shares) | 7,773,466 | 7,722,892 | 7,766,999 | 7,699,977 |
Diluted (in shares) | 7,790,760 | 7,761,560 | 7,791,975 | 7,747,068 |
Dividends per common share (in dollars per share) | $ 0.13 | $ 0.12 | $ 0.26 | $ 0.24 |
Service charges and fees | ||||
Noninterest income | ||||
Contract revenue | $ 263 | $ 265 | $ 512 | $ 521 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 5,576 | $ 4,715 | $ 10,656 | $ 9,315 |
Unrealized gains (losses) on securities: | ||||
Unrealized holding gains (losses) on available for sale securities | 1,279 | (584) | 2,670 | (2,119) |
Reclassification adjustment for gain realized in net income | (76) | 0 | (76) | (222) |
Net change in unrealized gains (losses) | 1,203 | (584) | 2,594 | (2,341) |
Income tax (expense) benefit | (252) | 122 | (545) | 492 |
Unrealized gains (losses) on securities, net of tax | 951 | (462) | 2,049 | (1,849) |
Unrealized (losses) gains on interest rate swaps: | ||||
Unrealized (losses) gains on interest rate swaps | (5,974) | (187) | (10,046) | 1,815 |
Income tax benefit (expense) | 1,254 | 39 | 2,109 | (381) |
Unrealized (losses) gains on interest rate swaps, net of tax | (4,720) | (148) | (7,937) | 1,434 |
Total other comprehensive loss, net of tax | (3,769) | (610) | (5,888) | (415) |
Comprehensive income | $ 1,807 | $ 4,105 | $ 4,768 | $ 8,900 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income |
Beginning balance at Dec. 31, 2017 | $ 161,027 | $ 118,301 | $ 41,032 | $ 1,694 |
Beginning balance (in shares) at Dec. 31, 2017 | 7,751,424 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Net income | 9,315 | 9,315 | ||
Other comprehensive loss, net of tax | (415) | (415) | ||
Cash dividends declared | (1,877) | (1,877) | ||
Stock-based compensation expense | 633 | $ 633 | ||
Forfeitures of restricted stock (in shares) | (674) | |||
Warrants exercised | 400 | $ 400 | ||
Warrants exercised (in shares) | 22,400 | |||
Issuance of restricted stock (in shares) | 43,550 | |||
Stock options exercised | 490 | $ 490 | ||
Stock options exercised (in shares) | 25,020 | |||
Ending balance at Jun. 30, 2018 | 169,573 | $ 119,824 | 48,470 | 1,279 |
Ending balance (in shares) at Jun. 30, 2018 | 7,841,720 | |||
Beginning balance at Dec. 31, 2017 | $ 161,027 | $ 118,301 | 41,032 | 1,694 |
Beginning balance (in shares) at Dec. 31, 2017 | 7,751,424 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Repurchase of common stock (in shares) | 0 | |||
Ending balance at Dec. 31, 2018 | $ 174,196 | $ 120,527 | 54,706 | (1,037) |
Ending balance (in shares) at Dec. 31, 2018 | 7,842,271 | |||
Beginning balance at Mar. 31, 2018 | 165,947 | $ 119,363 | 44,695 | 1,889 |
Beginning balance (in shares) at Mar. 31, 2018 | 7,831,804 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Net income | 4,715 | 4,715 | ||
Other comprehensive loss, net of tax | (610) | (610) | ||
Cash dividends declared | (940) | (940) | ||
Stock-based compensation expense | 353 | $ 353 | ||
Forfeitures of restricted stock (in shares) | (274) | |||
Issuance of restricted stock (in shares) | 4,000 | |||
Stock options exercised | 108 | $ 108 | ||
Stock options exercised (in shares) | 6,190 | |||
Ending balance at Jun. 30, 2018 | 169,573 | $ 119,824 | 48,470 | 1,279 |
Ending balance (in shares) at Jun. 30, 2018 | 7,841,720 | |||
Beginning balance at Dec. 31, 2018 | 174,196 | $ 120,527 | 54,706 | (1,037) |
Beginning balance (in shares) at Dec. 31, 2018 | 7,842,271 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Net income | 10,656 | 10,656 | ||
Other comprehensive loss, net of tax | (5,888) | (5,888) | ||
Cash dividends declared | (2,042) | (2,042) | ||
Stock-based compensation expense | 495 | $ 495 | ||
Forfeitures of restricted stock (in shares) | (3,800) | |||
Issuance of restricted stock (in shares) | 34,450 | |||
Stock options exercised | 30 | $ 30 | ||
Repurchase of common stock | $ (988) | $ (988) | ||
Repurchase of common stock (in shares) | (34,168) | (34,168) | ||
Stock options exercised (in shares) | 2,350 | |||
Ending balance at Jun. 30, 2019 | $ 176,940 | $ 120,064 | 63,801 | (6,925) |
Ending balance (in shares) at Jun. 30, 2019 | 7,841,103 | |||
Beginning balance at Mar. 31, 2019 | 176,841 | $ 120,750 | 59,247 | (3,156) |
Beginning balance (in shares) at Mar. 31, 2019 | 7,873,471 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Net income | 5,576 | 5,576 | ||
Other comprehensive loss, net of tax | (3,769) | (3,769) | ||
Cash dividends declared | (1,022) | (1,022) | ||
Stock-based compensation expense | 279 | $ 279 | ||
Forfeitures of restricted stock (in shares) | (50) | |||
Warrants exercised | 0 | $ 0 | ||
Warrants exercised (in shares) | 0 | |||
Issuance of restricted stock (in shares) | 0 | |||
Stock options exercised | 23 | $ 23 | ||
Repurchase of common stock | (988) | $ (988) | ||
Repurchase of common stock (in shares) | (34,168) | |||
Stock options exercised (in shares) | 1,850 | |||
Ending balance at Jun. 30, 2019 | $ 176,940 | $ 120,064 | $ 63,801 | $ (6,925) |
Ending balance (in shares) at Jun. 30, 2019 | 7,841,103 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - (UNAUDITED) (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared (in dollars per share) | $ 0.13 | $ 0.12 | $ 0.26 | $ 0.24 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities | ||
Net income | $ 10,656 | $ 9,315 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net accretion of premiums and discounts on investment securities | (364) | (21) |
(Credit) provision for loan losses | (646) | 323 |
Provision for deferred income taxes | 189 | 332 |
Net gain on sales of available for sale securities | (76) | (222) |
Change in fair value of marketable equity securities | (59) | 0 |
Depreciation and amortization | 1,688 | 782 |
Amortization of debt issuance costs | 26 | 26 |
Increase in cash surrender value of bank-owned life insurance | (503) | (528) |
Net gain on sales of loans | (706) | (685) |
Stock-based compensation | 495 | 633 |
Net (accretion) amortization of purchase accounting adjustments | (39) | 332 |
Loss on sale of premises and equipment | 2 | 44 |
Net change in: | ||
Deferred loan fees | (195) | (418) |
Accrued interest receivable | 210 | 388 |
Other assets | (19,136) | 452 |
Accrued expenses and other liabilities | 7,767 | (1,610) |
Net cash (used in) provided by operating activities | (691) | 9,143 |
Cash flows from investing activities | ||
Proceeds from principal repayments on available for sale securities | 4,475 | 4,725 |
Proceeds from principal repayments on held to maturity securities | 113 | 85 |
Net proceeds from sales and calls of available for sale securities | 10,955 | 12,057 |
Purchases of marketable equity securities | (22) | 0 |
Purchases of available for sale securities | (12,270) | (19,311) |
Net decrease (increase) in loans | 34,779 | (51,950) |
Loan principal sold from loans not originated for sale | (15,964) | (6,009) |
Proceeds from sales of loans not originated for sale | 16,670 | 6,694 |
Purchases of premises and equipment | (395) | (2,943) |
Reduction (purchase) of Federal Home Loan Bank stock | 635 | |
Reduction (purchase) of Federal Home Loan Bank stock | (150) | |
Net cash provided by (used in) investing activities | 38,976 | (56,802) |
Cash flows from financing activities | ||
Net change in time certificates of deposit | 24,808 | (11,382) |
Net change in other deposits | (49,321) | 78,616 |
Net change in FHLB advances | (10,000) | 0 |
Proceeds from exercise of warrants | 0 | 400 |
Proceeds from exercise of options | 30 | 490 |
Dividends paid on common stock | (2,042) | (1,877) |
Repurchase of common stock | (988) | 0 |
Net cash (used in) provided by financing activities | (37,513) | 66,247 |
Net increase in cash and cash equivalents | 772 | 18,588 |
Cash and cash equivalents: | ||
Beginning of year | 78,112 | 70,731 |
End of period | 78,884 | 89,319 |
Cash paid for: | ||
Interest | 14,140 | 10,605 |
Income taxes | 828 | 1,515 |
Noncash investing and financing activities: | ||
Loans transferred to other real estate owned | 1,217 | 0 |
Net change in unrealized gains or losses on available for sale securities | 2,594 | (2,341) |
Net change in unrealized gains or losses on interest rate swaps | (10,046) | $ 1,815 |
Establishment of right-of-use asset and lease liability | $ 10,584 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Summary of Significant Accounting Policies Bankwell Financial Group, Inc. (the “Company” or “Bankwell”) is a bank holding company headquartered in New Canaan, Connecticut. The Company offers a broad range of financial services through its banking subsidiary, Bankwell Bank (the “Bank”). The Bank is a Connecticut state chartered commercial bank, founded in 2002, whose deposits are insured under the Deposit Insurance Fund administered by the Federal Deposit Insurance Corporation (“FDIC”). The Bank provides a full range of banking services to commercial and consumer customers, primarily concentrated in the New York metropolitan area and throughout Connecticut, with the majority of the Company's loans in Fairfield and New Haven Counties, Connecticut, with branch locations in New Canaan, Stamford, Fairfield, Wilton, Westport, Darien, Norwalk, Hamden and North Haven Connecticut. Principles of consolidation The consolidated financial statements include the accounts of the Company and the Bank, including its wholly owned passive investment company subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of estimates The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and general practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities as of the date of the consolidated balance sheet, and revenue and expenses for the period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the allowance for loan losses, the valuation of derivative instruments, investment securities and deferred income taxes, and the evaluation of investment securities for other than temporary impairment. Basis of consolidated financial statement presentation The unaudited consolidated financial statements presented herein have been prepared pursuant to the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and Rule 10-1 of Regulation S-X and do not include all of the information and note disclosures required by GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying unaudited interim consolidated financial statements have been included. Interim results are not necessarily reflective of the results that may be expected for the year ending December 31, 2019 . The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included on Form 10-K for the year ended December 31, 2018 . Significant concentrations of credit risk Most of the Company’s activities are with customers located in the New York metropolitan area and throughout Fairfield and New Haven Counties and the surrounding region of Connecticut. Declines in property values in these areas could significantly impact the Company. The Company has a significant concentration in commercial real estate loans. Management does not believe this presents any special risk as loans are subject to an appropriate credit risk monitoring process. The Company does not have any significant concentrations in any one industry or customer. Common Share Repurchases The Company is incorporated in the state of Connecticut. Connecticut law does not provide for treasury shares, rather shares repurchased by the Company constitute authorized, but unissued shares. GAAP states that accounting for treasury stock shall conform to state law. Therefore, the cost of shares repurchased by the Company has been allocated to common stock balances. Reclassification Certain prior period amounts have been reclassified to conform to the 2019 financial statement presentation. These reclassifications only changed the reporting categories and did not affect the consolidated results of operations or consolidated financial position of the Company. Recent accounting pronouncements The following section includes changes in accounting principles and potential effects of new accounting guidance and pronouncements. Recently issued accounting pronouncements not yet adopted ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): “Measurement of Credit Losses on Financial Instruments.” This ASU changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held to maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that will replace today’s “incurred loss” model and can result in the earlier recognition of credit losses. For available for sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except that the losses will be recognized as an allowance. This update will be effective for the Company on January 1, 2020, including interim periods within that fiscal year. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Management is currently working with third-party consultants and continues to evaluate the impact of its pending adoption of this guidance on the Company's financial statements. On July 17, 2019, the FASB proposed deferring the effective date of ASC 326 for smaller reporting companies as defined by the SEC. Subject to any additional guidance or clarification from the FASB or the SEC, management believes the Company will qualify for this proposed deferral. The FASB has proposed a three-year deferral for smaller reporting companies, with an effective date of January 1, 2023. The deferral period may be reduced if the Company no longer meets the definition of a smaller reporting company. The Company will continue to monitor the progress of this proposal. ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): “Simplifying the Test for Goodwill Impairment.” This ASU simplifies the test for goodwill impairment by eliminating Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity was required to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, this ASU also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendments will be effective for the Company for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the application of this guidance to have a material impact on the Company’s financial statements. ASU No. 2018-13, Fair Value Measurement (Topic 820) : “Changes to the Disclosure Requirements for Fair Value Measurement.” The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The following disclosure requirements were removed from topic 820 for public entities: (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (2) the policy for timing of transfers between levels and (3) the valuation processes for Level 3 fair value measurements. This update also modified and added disclosure requirements to Topic 820, including adding (1) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and (2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 will be effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods in the year of adoption. Early adoption is permitted for any interim or annual period. The Company does not expect the application of this guidance to have a material impact on the Company’s financial statements. Recently adopted accounting pronouncements ASU No. 2016-02, Leases (Topic 842): The amendments in this ASU require lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by operating leases. Accounting by lessors will remain largely unchanged. In July 2018, the FASB issued a subsequent update which introduced a new transition method, under which, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The guidance was effective for the Company on January 1, 2019. The Company recognized $0.5 million , net of tax, as a cumulative-effect adjustment to the opening balance of retained earnings at the time of adoption on January 1, 2019. In addition, the Company recorded a right of use asset totaling $10.6 million and a lease liability totaling $10.6 million on the balance sheet for the Company's outstanding lease obligations on January 1, 2019. The Company utilized a 6% discount rate to calculate the present value of the right of use asset and lease liability on January 1, 2019. The right of use asset is disclosed within premises and equipment, net on the balance sheet and the lease liability is disclosed within accrued expenses and other liabilities on the balance sheet. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The amortized cost, gross unrealized gains and losses and fair value of available for sale and held to maturity securities at June 30, 2019 were as follows: June 30, 2019 Amortized Cost Gross Unrealized Fair Value Gains Losses (In thousands) Available for sale securities: U.S. Government and agency obligations Less than one year $ 4,980 $ 3 $ (4 ) $ 4,979 Due from one through five years 12,037 66 (10 ) 12,093 Due from five through ten years 8,395 195 — 8,590 Due after ten years 66,256 608 (10 ) 66,854 91,668 872 (24 ) 92,516 State agency and municipal obligations Due from five through ten years 500 1 — 501 Total available for sale securities $ 92,168 $ 873 $ (24 ) $ 93,017 Held to maturity securities: State agency and municipal obligations Less than one year $ 3,900 $ — $ — $ 3,900 Due after ten years 16,334 1,792 — 18,126 20,234 1,792 — 22,026 Corporate bonds Less than one year 1,000 — (6 ) 994 Government-sponsored mortgage backed securities No contractual maturity 84 7 — 91 Total held to maturity securities $ 21,318 $ 1,799 $ (6 ) $ 23,111 The amortized cost, gross unrealized gains and losses and fair value of available for sale and held to maturity securities at December 31, 2018 were as follows: December 31, 2018 Amortized Cost Gross Unrealized Fair Value Gains Losses (In thousands) Available for sale securities: U.S. Government and agency obligations Less than one year $ 1,000 $ — $ (11 ) $ 989 Due from one through five years 12,025 — (161 ) 11,864 Due from five through ten years 100 — (5 ) 95 Due after ten years 70,690 7 (1,509 ) 69,188 83,815 7 (1,686 ) 82,136 State agency and municipal obligations Due from one through five years 2,234 18 — 2,252 Due from five through ten years 1,261 18 — 1,279 Due after ten years 528 — (52 ) 476 4,023 36 (52 ) 4,007 Corporate bonds Due from one through five years 7,061 — (50 ) 7,011 Total available for sale securities $ 94,899 $ 43 $ (1,788 ) $ 93,154 Held to maturity securities: State agency and municipal obligations Less than one year $ 3,894 $ 6 $ — $ 3,900 Due after ten years 16,434 669 (113 ) 16,990 20,328 675 (113 ) 20,890 Corporate bonds Less than one year 1,000 — — 1,000 Government-sponsored mortgage backed securities No contractual maturity 93 5 — 98 Total held to maturity securities $ 21,421 $ 680 $ (113 ) $ 21,988 The gross realized gains on the sale of investment securities totaled $0.1 million for the three and six months ended June 30, 2019 . The gross realized losses on the sale of investment securities totaled $17.0 thousand for the three and six months ended June 30, 2019 . Total sales proceeds and calls of investment securities were $11.0 million for the three and six months ended June 30, 2019 . The gross realized gains on the sale of investment securities totaled $0.2 million for the six months ended June 30, 2018 . The gross realized losses on the sale of investment securities totaled $2.0 thousand for the six months ended June 30, 2018 . Total sales proceeds and calls of investment securities were $12.1 million for the six months ended June 30, 2018 . There were no sales of investment securities during the three months ended June 30, 2018 . At June 30, 2019 and December 31, 2018 , none of the Company's securities were pledged as collateral with the Federal Home Loan Bank ("FHLB") or any other institution. As of June 30, 2019 and December 31, 2018 , the actual duration of the Company's available for sale securities were significantly shorter than the notional maturities. At June 30, 2019 , the Company held marketable equity securities with a fair value of $2.1 million and an amortized cost of $2.0 million . At December 31, 2018 , the Company held marketable equity securities with a fair value and amortized cost of $2.0 million . These securities represent an investment in mutual funds that have a primary objective to make investments for CRA purposes. The following table provides information regarding investment securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2019 and December 31, 2018 : Length of Time in Continuous Unrealized Loss Position Less Than 12 Months 12 Months or More Total Fair Value Unrealized Loss Percent Decline from Amortized Cost Fair Value Unrealized Loss Percent Decline from Amortized Cost Fair Value Unrealized Loss Percent Decline from Amortized Cost (Dollars in thousands) June 30, 2019 U.S. Government and agency obligations $ — $ — — % $ 4,291 $ (24 ) 0.56 % $ 4,291 $ (24 ) 0.56 % Corporate bonds 994 (6 ) 0.63 % — — — % 994 (6 ) 0.63 % Total investment securities $ 994 $ (6 ) 0.63 % $ 4,291 $ (24 ) 0.56 % $ 5,285 $ (30 ) 0.57 % December 31, 2018 U.S. Government and agency obligations $ 4,990 $ (38 ) 0.75 % $ 72,676 $ (1,648 ) 2.22 % $ 77,666 $ (1,686 ) 2.12 % State agency and municipal obligations 8,212 (113 ) 1.36 % 476 (52 ) 9.87 % 8,688 (165 ) 1.87 % Corporate bonds 2,033 (11 ) 0.51 % 4,978 (39 ) 0.78 % 7,011 (50 ) 0.70 % Total investment securities $ 15,235 $ (162 ) 1.05 % $ 78,130 $ (1,739 ) 2.18 % $ 93,365 $ (1,901 ) 2.00 % There were six and twenty-five investment securities as of June 30, 2019 and December 31, 2018 , respectively, in which the fair value of the security was less than the amortized cost of the security. The U.S. Government and agency obligations owned are either direct obligations of the U.S. Government or guaranteed by the U.S. Government, therefore the contractual cash flows are guaranteed and as a result the unrealized losses in this portfolio are not considered other than temporarily impaired. The Company continually monitors its corporate bond portfolio and at this time this portfolio has minimal default risk because the corporate bond in this portfolio is rated investment grade. At June 30, 2019 , the Company has the intent and ability to retain its investment securities in an unrealized loss position until the decline in value has recovered or the security has matured. |
Loans Receivable and Allowance
Loans Receivable and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2019 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Loans Receivable and Allowance for Loan Losses | Loans Receivable and Allowance for Loan Losses The following table sets forth a summary of the loan portfolio at June 30, 2019 and December 31, 2018 : (In thousands) June 30, 2019 December 31, 2018 Real estate loans: Residential $ 164,066 $ 178,079 Commercial 1,080,846 1,094,066 Construction 89,236 73,191 1,334,148 1,345,336 Commercial business 233,364 258,978 Consumer 297 412 Total loans 1,567,809 1,604,726 Allowance for loan losses (13,890 ) (15,462 ) Deferred loan origination fees, net (2,302 ) (2,497 ) Unamortized loan premiums 3 8 Loans receivable, net $ 1,551,620 $ 1,586,775 Lending activities are conducted principally in the New York metropolitan area and throughout Connecticut, with the majority in Fairfield and New Haven Counties of Connecticut, and consist of commercial real estate loans, commercial business loans and, to a lesser degree, a variety of consumer loans. Loans may also be granted for the construction of commercial properties. The majority of commercial mortgage loans are collateralized by first or second mortgages on real estate. Risk management The Company has established credit policies applicable to each type of lending activity in which it engages. The Company evaluates the creditworthiness of each customer and extends credit of up to 80% of the market value of the collateral, depending on the borrower's creditworthiness and the type of collateral. The borrower’s ability to service the debt is monitored on an ongoing basis. Real estate is the primary form of collateral. Other important forms of collateral are business assets, time deposits and marketable securities. While collateral provides assurance as a secondary source of repayment, the Company ordinarily requires the primary source of repayment for commercial loans to be based on the borrower’s ability to generate continuing cash flows. In the fourth quarter of 2017, management made the strategic decision to cease the origination of residential mortgage loans. The Company’s policy for residential lending generally required that the amount of the loan may not exceed 80% of the original appraised value of the property. In certain situations, the amount may have exceeded 80% LTV either with private mortgage insurance being required for that portion of the residential loan in excess of 80% of the appraised value of the property or where secondary financing is provided by a housing authority program second mortgage, a community’s low/moderate income housing program, or a religious or civic organization. Credit quality of loans and the allowance for loan losses Management segregates the loan portfolio into defined segments, which are used to develop and document a systematic method for determining the Company's allowance for loan losses. The portfolio segments are segregated based on loan types and the underlying risk factors present in each loan type. Such risk factors are periodically reviewed by management and revised as deemed appropriate. The Company's loan portfolio is segregated into the following portfolio segments: Residential Real Estate: This portfolio segment consists of first mortgage loans secured by one-to-four family owner occupied residential properties for personal use located in the Company's market area. This segment also includes home equity loans and home equity lines of credit secured by owner occupied one-to-four family residential properties. Loans of this type were written at a combined maximum of 80% of the appraised value of the property and the Company requires a first or second lien position on the property. These loans can be affected by economic conditions and the values of the underlying properties. Commercial Real Estate: This portfolio segment includes loans secured by commercial real estate, multi-family dwellings and investor-owned one-to-four family dwellings. Loans secured by commercial real estate generally have larger loan balances and more credit risk than owner occupied one-to-four family mortgage loans. Construction: This portfolio segment includes commercial construction loans for commercial development projects, including condominiums, apartment buildings, and single family subdivisions as well as office buildings, retail and other income producing properties and land loans, which are loans made with land as collateral. Construction and land development financing generally involves greater credit risk than long-term financing on improved, owner-occupied or leased real estate. Risk of loss on a construction loan depends largely upon the accuracy of the initial estimate of the value of the property at completion of construction compared to the estimated cost (including interest) of construction and other assumptions. If the estimate of construction cost proves to be inaccurate, the Company may be required to advance additional funds beyond the amount originally committed in order to protect the value of the property. Moreover, if the estimated value of the completed project proves to be inaccurate, the borrower may hold a property with a value that is insufficient to assure full repayment through sale or refinance. Construction loans also expose the Company to the risks that improvements will not be completed on time in accordance with specifications and projected costs and that repayment will depend on the successful operation or sale of the properties, which may cause some borrowers to be unable to continue paying debt service, which exposes the Company to greater risk of non-payment and loss. Commercial Business: This portfolio segment includes commercial business loans secured by assignments of corporate assets and personal guarantees of the business owners. Commercial business loans generally have higher interest rates and shorter terms than other loans, but they also have increased difficulty of loan monitoring and a higher risk of default since their repayment generally depends on the successful operation of the borrower’s business. Consumer: This portfolio segment includes loans secured by savings or certificate accounts, automobiles, as well as unsecured personal loans and overdraft lines of credit. This type of loan entails greater risk than residential mortgage loans, particularly in the case of loans that are unsecured or secured by assets that depreciate rapidly. Allowance for loan losses The following tables set forth the activity in the Company’s allowance for loan losses for the three and six months ended June 30, 2019 and 2018 , by portfolio segment: Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Three Months Ended June 30, 2019 Beginning balance $ 719 $ 11,646 $ 213 $ 2,851 $ 1 $ 15,430 Charge-offs (565 ) — — (130 ) (13 ) (708 ) Recoveries — — — 6 3 9 Provisions (Credits) 769 (1,736 ) 46 70 10 (841 ) Ending balance $ 923 $ 9,910 $ 259 $ 2,797 $ 1 $ 13,890 Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Three Months Ended June 30, 2018 Beginning balance $ 1,695 $ 12,645 $ 767 $ 3,692 $ 2 $ 18,801 Charge-offs (56 ) — — — (57 ) (113 ) Recoveries — — — 4 4 8 (Credits) Provisions (889 ) 1,540 (286 ) (107 ) 52 310 Ending balance $ 750 $ 14,185 $ 481 $ 3,589 $ 1 $ 19,006 Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Six Months Ended June 30, 2019 Beginning balance $ 857 $ 11,562 $ 140 $ 2,902 $ 1 $ 15,462 Charge-offs (797 ) — — (136 ) (13 ) (946 ) Recoveries — — — 16 4 20 Provisions (Credits) 863 (1,652 ) 119 15 9 (646 ) Ending balance $ 923 $ 9,910 $ 259 $ 2,797 $ 1 $ 13,890 Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Six Months Ended June 30, 2018 Beginning balance $ 1,721 $ 12,777 $ 907 $ 3,498 $ 1 $ 18,904 Charge-offs (56 ) (18 ) — (96 ) (60 ) (230 ) Recoveries — — — 4 5 9 (Credits) Provisions (915 ) 1,426 (426 ) 183 55 323 Ending balance $ 750 $ 14,185 $ 481 $ 3,589 $ 1 $ 19,006 Loans evaluated for impairment and the related allowance for loan losses as of June 30, 2019 and December 31, 2018 were as follows: Portfolio Allowance (In thousands) June 30, 2019 Loans individually evaluated for impairment: Residential real estate $ 4,202 $ 107 Commercial real estate 4,986 97 Commercial business 6,663 801 Consumer 1 — Subtotal 15,852 1,005 Loans collectively evaluated for impairment: Residential real estate 159,864 816 Commercial real estate 1,075,860 9,813 Construction 89,236 259 Commercial business 226,701 1,996 Consumer 296 1 Subtotal 1,551,957 12,885 Total $ 1,567,809 $ 13,890 Portfolio Allowance (In thousands) December 31, 2018 Loans individually evaluated for impairment: Residential real estate $ 6,534 $ 233 Commercial real estate 6,383 — Commercial business 6,155 133 Consumer 3 — Subtotal 19,075 366 Loans collectively evaluated for impairment: Residential real estate 171,545 624 Commercial real estate 1,087,683 11,562 Construction 73,191 140 Commercial business 252,823 2,769 Consumer 409 1 Subtotal 1,585,651 15,096 Total $ 1,604,726 $ 15,462 Credit quality indicators To measure credit risk for the loan portfolios, the Company employs a credit risk rating system. This risk rating represents an assessed level of a loan’s risk based on the character and creditworthiness of the borrower/guarantor, the capacity of the borrower to adequately service the debt, any credit enhancements or additional sources of repayment, and the quality, value and coverage of the collateral, if any. The objectives of the Company’s risk rating system are to provide the Board of Directors and senior management with an objective assessment of the overall quality of the loan portfolio, to promptly and accurately identify loans with well-defined credit weaknesses so that timely action can be taken to minimize a potential credit loss, to identify relevant trends affecting the collectability of the loan portfolio, to isolate potential problem areas and to provide essential information for determining the adequacy of the allowance for loan losses. The Company’s credit risk rating system has nine grades, with each grade corresponding to a progressively greater risk of default. Risk ratings of (1) through (5) are "pass" categories and risk ratings of (6) through (9) are criticized asset categories as defined by the regulatory agencies. A “special mention” (6) credit has a potential weakness which, if uncorrected, may result in a deterioration of the repayment prospects or inadequately protect the Company’s credit position at some time in the future. “Substandard” (7) loans are credits that have a well-defined weakness or weaknesses that jeopardize the full repayment of the debt. An asset rated “doubtful” (8) has all the weaknesses inherent in a substandard asset and which, in addition, make collection or liquidation in full highly questionable and improbable when considering existing facts, conditions, and values. Loans classified as “loss” (9) are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value; rather, it is not practical or desirable to defer writing-off this asset even though partial recovery may be made in the future. Risk ratings are assigned as necessary to differentiate risk within the portfolio. They are reviewed on an ongoing basis through the annual loan review process performed by Company personnel, normal renewal activity and the quarterly watchlist and watched asset report process. They are revised to reflect changes in the borrower's financial condition and outlook, debt service coverage capability, repayment performance, collateral value and coverage, as well as other considerations. In addition to internal review at multiple points, outsourced loan review opines on risk ratings with regard to the sample of loans their review covers. The following tables present credit risk ratings by loan segment as of June 30, 2019 and December 31, 2018 : Commercial Credit Quality Indicators June 30, 2019 December 31, 2018 Commercial Real Estate Construction Commercial Business Total Commercial Real Estate Construction Commercial Business Total (In thousands) Pass $ 1,071,360 $ 89,236 $ 213,497 $ 1,374,093 $ 1,084,695 $ 73,191 $ 237,933 $ 1,395,819 Special Mention 4,500 — 13,204 17,704 2,988 — 14,890 17,878 Substandard 2,497 — 4,023 6,520 2,516 — 2,592 5,108 Doubtful 2,489 — 2,640 5,129 3,867 — 3,563 7,430 Loss — — — — — — — — Total loans $ 1,080,846 $ 89,236 $ 233,364 $ 1,403,446 $ 1,094,066 $ 73,191 $ 258,978 $ 1,426,235 Residential and Consumer Credit Quality Indicators June 30, 2019 December 31, 2018 Residential Real Estate Consumer Total Residential Real Estate Consumer Total (In thousands) Pass $ 159,734 $ 296 $ 160,030 $ 171,415 $ 409 $ 171,824 Special Mention 130 — 130 130 — 130 Substandard 4,202 1 4,203 6,534 3 6,537 Doubtful — — — — — — Loss — — — — — — Total loans $ 164,066 $ 297 $ 164,363 $ 178,079 $ 412 $ 178,491 Loan portfolio aging analysis When a loan is 15 days past due, the Company sends the borrower a late notice. The Company also attempts to contact the borrower by phone if the delinquency is not corrected promptly after the notice has been sent. When the loan is 30 days past due, the Company mails the borrower a letter reminding the borrower of the delinquency, and attempts to contact the borrower personally to determine the reason for the delinquency and ensure the borrower understands the terms of the loan. If necessary, on the subsequent 90th day of delinquency, the Company may take other appropriate legal action. A summary report of all loans 30 days or more past due is provided to the Board of Directors of the Company periodically. Loans greater than 90 days past due are generally put on nonaccrual status. A nonaccrual loan is restored to accrual status when it is no longer delinquent and collectability of interest and principal is no longer in doubt. A loan is considered to be no longer delinquent when timely payments are made for a period of at least six months (one year for loans providing for quarterly or semi-annual payments) by the borrower in accordance with the contractual terms. The following tables set forth certain information with respect to the Company's loan portfolio delinquencies by portfolio segment as of June 30, 2019 and December 31, 2018 : June 30, 2019 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans (In thousands) Real estate loans: Residential real estate $ 1,389 $ — $ 394 $ 1,783 $ 162,283 $ 164,066 Commercial real estate 551 3,439 3,083 7,073 1,073,773 1,080,846 Construction — — — — 89,236 89,236 Commercial business 657 273 4,215 5,145 228,219 233,364 Consumer — — — — 297 297 Total loans $ 2,597 $ 3,712 $ 7,692 $ 14,001 $ 1,553,808 $ 1,567,809 December 31, 2018 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans (In thousands) Real estate loans: Residential real estate $ 994 $ — $ 2,203 $ 3,197 $ 174,882 $ 178,079 Commercial real estate 668 133 4,386 5,187 1,088,879 1,094,066 Construction — — — — 73,191 73,191 Commercial business — 1 4,076 4,077 254,901 258,978 Consumer — — — — 412 412 Total loans $ 1,662 $ 134 $ 10,665 $ 12,461 $ 1,592,265 $ 1,604,726 There were no loans delinquent greater than 90 days and still accruing interest as of June 30, 2019 and December 31, 2018 . Loans on nonaccrual status The following is a summary of nonaccrual loans by portfolio segment as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 (In thousands) Residential real estate $ 1,716 $ 3,812 Commercial real estate 4,535 5,950 Commercial business 5,437 4,320 Total $ 11,688 $ 14,082 Interest income on loans that would have been recognized if loans on nonaccrual status had been current in accordance with their original terms for the six months ended June 30, 2019 and 2018 was $0.6 million and $0.4 million , respectively. There was $43 thousand interest income recognized on these loans for the six months ended June 30, 2019 and $71 thousand of interest income was recognized on these loans for the six months ended June 30, 2018. At June 30, 2019 and December 31, 2018 , there were no commitments to lend additional funds to any borrower on nonaccrual status. Nonaccrual loans with no specific reserve totaled $4.4 million and $11.5 million at June 30, 2019 and December 31, 2018 , respectively. Impaired loans An impaired loan is generally one for which it is probable, based on current information, the Company will not collect all the amounts due in accordance with the contractual terms of the loan. Impaired loans are individually evaluated for impairment. When the Company classifies a problem loan as impaired, it evaluates whether a specific valuation allowance is required for that portion of the asset that is estimated to be impaired. The following table summarizes impaired loans by portfolio segment as of June 30, 2019 and December 31, 2018 : Carrying Amount Unpaid Principal Balance Associated Allowance June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 (In thousands) Impaired loans without a valuation allowance: Residential real estate $ 4,094 $ 4,520 $ 4,192 $ 4,613 $ — $ — Commercial real estate 2,376 6,383 2,615 12,191 — — Commercial business 1,980 5,212 2,263 6,051 — — Consumer 1 3 1 3 — — Total impaired loans without a valuation allowance 8,451 16,118 9,071 22,858 — — Impaired loans with a valuation allowance: Residential real estate $ 108 $ 2,014 $ 108 $ 2,054 $ 107 $ 233 Commercial real estate 2,610 — 8,236 — 97 — Commercial business 4,683 943 5,333 945 801 133 Total impaired loans with a valuation allowance 7,401 2,957 13,677 2,999 1,005 366 Total impaired loans $ 15,852 $ 19,075 $ 22,748 $ 25,857 $ 1,005 $ 366 The following table summarizes the average carrying amount of impaired loans and interest income recognized on impaired loans by portfolio segment as of June 30, 2019 and June 30, 2018 : Average Carrying Amount Interest Income Recognized Three Months Ended June 30, Three Months Ended June 30, 2019 2018 2019 2018 (In thousands) Impaired loans without a valuation allowance: Residential real estate $ 4,112 $ 7,334 $ 31 $ 29 Commercial real estate 2,411 8,827 4 4 Commercial business 2,117 2,060 48 76 Consumer 2 6 — — Total impaired loans without a valuation allowance 8,642 18,227 83 109 Impaired loans with a valuation allowance: Residential real estate $ 108 $ — $ — $ — Commercial real estate 3,301 15,168 1 — Commercial business 4,078 3,222 8 3 Total impaired loans with a valuation allowance 7,487 18,390 9 3 Total impaired loans $ 16,129 $ 36,617 $ 92 $ 112 Average Carrying Amount Interest Income Recognized Six Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands) Impaired loans without a valuation allowance: Residential real estate $ 4,129 $ 7,347 $ 60 $ 77 Commercial real estate 2,440 8,878 9 80 Commercial business 2,157 2,086 93 154 Consumer 2 6 — — Total impaired loans without a valuation allowance 8,728 18,317 162 311 Impaired loans with a valuation allowance: Residential real estate $ 108 $ — $ — $ — Commercial real estate 3,593 15,170 2 53 Commercial business 4,271 2,347 44 25 Total impaired loans with a valuation allowance 7,972 17,517 46 78 Total impaired loans $ 16,700 $ 35,834 $ 208 $ 389 Troubled debt restructurings ("TDRs") Modifications to a loan are considered to be a troubled debt restructuring when both of the following conditions are met: 1) the borrower is experiencing financial difficulties and 2) the modification constitutes a concession that is not in line with market rates and/or terms. Modified terms are dependent upon the financial position and needs of the individual borrower. Troubled debt restructurings are classified as impaired loans. If a performing loan is restructured into a TDR, it remains in performing status. If a nonperforming loan is restructured into a TDR, it continues to be carried in nonaccrual status. Nonaccrual classification may be removed if the borrower demonstrates compliance with the modified terms for a minimum of six months. Loans classified as TDRs totaled $5.0 million at June 30, 2019 and $7.2 million at December 31, 2018 . The following table provides information on loans that were modified as TDRs during the periods indicated. Outstanding Recorded Investment Number of Loans Pre-Modification Post-Modification (Dollars in thousands) 2019 2018 2019 2018 2019 2018 Three Months Ended June 30, Residential real estate 1 — $ 34 $ — $ 34 $ — Commercial business 2 — 465 — 465 — Total 3 — $ 499 $ — $ 499 $ — Outstanding Recorded Investment Number of Loans Pre-Modification Post-Modification (Dollars in thousands) 2019 2018 2019 2018 2019 2018 Six Months Ended June 30, Residential real estate 1 2 $ 34 $ 2,826 $ 34 $ 2,822 Commercial business 2 1 465 37 465 29 Total 3 3 $ 499 $ 2,863 $ 499 $ 2,851 At June 30, 2019 and December 31, 2018 , there were three nonaccrual loans identified as TDRs totaling $1.7 million and six nonaccrual loans identified as TDRs totaling $3.6 million , respectively. The following table provides information on how loans were modified as TDRs during the three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands) Payment concession $ — $ — $ — $ 2,101 Maturity concession 125 — 125 — Maturity and payment concession — — — 750 Rate and payment concession 374 — 374 — Total $ 499 $ — $ 499 $ 2,851 There were two loans modified in a troubled debt restructuring that re-defaulted during the six months ended June 30, 2019 . The total recorded investment in these loans was $1.3 million at June 30, 2019 . There was one loan modified in a troubled debt restructuring that re-defaulted during the six months ended June 30, 2018 . The total recorded investment in this loan was $2.1 million at June 30, 2018 . |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders' Equity Common Stock The Company has 10,000,000 shares authorized and 7,841,103 shares issued and outstanding at June 30, 2019 and 10,000,000 shares authorized and 7,842,271 shares issued and outstanding at December 31, 2018 . The Company's stock is traded on the NASDAQ stock market under the ticker symbol BWFG. Warrants On October 1, 2014, the Company acquired Quinnipiac Bank and Trust Co. and, in connection therewith, the Company issued 68,600 warrants to former Quinnipiac warrant holders in accordance with the merger agreement. Each warrant was automatically converted into a warrant to purchase 0.56 shares of the Company’s common stock for an exercise price of $17.86 . During the first quarter of 2018, all remaining warrants were exercised. The Company does not have any warrants outstanding as of June 30, 2019 . Dividends The Company’s shareholders are entitled to dividends when and if declared by the Board of Directors, out of funds legally available. The ability of the Company to pay dividends depends, in part, on the ability of the Bank to pay dividends to the Company. In accordance with Connecticut statutes, regulatory approval is required to pay dividends in excess of the Bank’s profits retained in the current year plus retained profits from the previous two years. The Bank is also prohibited from paying dividends that would reduce its capital ratios below minimum regulatory requirements. Issuer Purchases of Equity Securities On December 19, 2018 , the Company's Board of Directors authorized a share repurchase program of up to 400,000 shares of the Company's Common Stock. The Company intends to accomplish the share repurchases through open market transactions, though the Company could accomplish repurchases through other means, such as privately negotiated transactions. The timing, price and volume of repurchases will be based on market conditions, relevant securities laws and other factors. The share repurchase plan does not obligate the Company to acquire any particular amount of Common Stock, and it may be modified or suspended at any time at the Company's discretion. During the six months ended June 30, 2019 , the Company purchased 34,168 shares of its Common Stock at a weighted average price of $28.87 per share. The Company did not repurchase any of its Common Stock for the year ended December 31, 2018 . |
Comprehensive Income
Comprehensive Income | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Income | Comprehensive Income Comprehensive income represents the sum of net income and items of other comprehensive income or loss, including net unrealized gains or losses on securities available for sale and net unrealized gains or losses on derivatives. The Company’s total comprehensive income or loss for the three and six months ended June 30, 2019 and 2018 is reported in the Consolidated Statements of Comprehensive Income. The following tables present the changes in accumulated other comprehensive income (loss) by component, net of tax for the three and six months ended June 30, 2019 and 2018 : Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at March 31, 2019 $ (281 ) $ (2,875 ) $ (3,156 ) Other comprehensive income (loss) before reclassifications, net of tax 1,011 (4,720 ) (3,709 ) Amounts reclassified from accumulated other comprehensive income, net of tax (60 ) — (60 ) Net other comprehensive income (loss) 951 (4,720 ) (3,769 ) Balance at June 30, 2019 $ 670 $ (7,595 ) $ (6,925 ) Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at March 31, 2018 $ (1,302 ) $ 3,191 $ 1,889 Other comprehensive loss before reclassifications, net of tax (462 ) (148 ) (610 ) Net other comprehensive loss (462 ) (148 ) (610 ) Balance at June 30, 2018 $ (1,764 ) $ 3,043 $ 1,279 Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at December 31, 2018 $ (1,379 ) $ 342 $ (1,037 ) Other comprehensive income (loss) before reclassifications, net of tax 2,109 (7,937 ) (5,828 ) Amounts reclassified from accumulated other comprehensive income, net of tax (60 ) — (60 ) Net other comprehensive income (loss) 2,049 (7,937 ) (5,888 ) Balance at June 30, 2019 $ 670 $ (7,595 ) $ (6,925 ) Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at December 31, 2017 $ 85 $ 1,609 $ 1,694 Other comprehensive (loss) income before reclassifications, net of tax (1,674 ) 1,434 (240 ) Amounts reclassified from accumulated other comprehensive income, net of tax (175 ) — (175 ) Net other comprehensive (loss) income (1,849 ) 1,434 (415 ) Balance at June 30, 2018 $ (1,764 ) $ 3,043 $ 1,279 The following table provides information for the items reclassified from accumulated other comprehensive income or loss: Accumulated Other Comprehensive Income Components Three Months Ended June 30, Six Months Ended June 30, Associated Line Item in the Consolidated Statements of Income 2019 2018 2019 2018 (In thousands) Available for sale securities: Unrealized gains on investments $ 76 $ — $ 76 $ 222 Net gain on sale of available for sale securities Tax expense (16 ) — (16 ) (47 ) Income tax expense Net of tax $ 60 $ — $ 60 $ 175 |
Earnings per Share ("EPS")
Earnings per Share ("EPS") | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share (EPS) | Earnings per Share ("EPS") Unvested restricted stock awards that contain non-forfeitable rights to dividends are participating securities and are included in the computation of EPS pursuant to the two-class method. The two-class method is an earnings allocation formula that determines EPS for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. The Company’s unvested restricted stock awards qualify as participating securities. Net income is allocated between the common stock and participating securities pursuant to the two-class method. Basic EPS is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period, excluding participating unvested restricted stock awards. Diluted EPS is computed in a similar manner, except that the denominator includes the number of additional common shares that would have been outstanding if potentially dilutive common shares were issued using the treasury stock method. The following table is a reconciliation of earnings available to common shareholders and basic weighted average common shares outstanding to diluted weighted average common shares outstanding, reflecting the application of the two-class method: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands, except per share data) Net income $ 5,576 $ 4,715 $ 10,656 $ 9,315 Dividends to participating securities (1) (13 ) (13 ) (23 ) (26 ) Undistributed earnings allocated to participating securities (1) (56 ) (54 ) (99 ) (101 ) Net income for earnings per share calculation $ 5,507 $ 4,648 $ 10,534 $ 9,188 Weighted average shares outstanding, basic 7,773 7,723 7,767 7,700 Effect of dilutive equity-based awards (2) 18 39 25 47 Weighted average shares outstanding, diluted 7,791 7,762 7,792 7,747 Net earnings per common share: Basic earnings per common share $ 0.71 $ 0.60 $ 1.36 $ 1.19 Diluted earnings per common share $ 0.71 $ 0.60 $ 1.35 $ 1.19 (1) Represents dividends paid and undistributed earnings allocated to unvested stock-based awards that contain non-forfeitable rights to dividends. (2) Represents the effect of the assumed exercise of stock options and the vesting of restricted shares, as applicable, utilizing the treasury stock method. |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2019 | |
Banking and Thrift [Abstract] | |
Regulatory Matters | Regulatory Matters The Federal Reserve, the FDIC and the other federal and state bank regulatory agencies establish regulatory capital guidelines for U.S. banking organizations. As of January 1, 2015, the Company and the Bank became subject to new capital rules set forth by the Federal Reserve, the FDIC and the other federal and state bank regulatory agencies. The capital rules revise the banking agencies’ leverage and risk-based capital requirements and the method for calculating risk weighted assets to make them consistent with agreements that were reached by the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act (the Basel III Capital Rules). The Basel III Capital Rules establish a minimum Common Equity Tier 1 capital requirement of 4.5% of risk-weighted assets; set the minimum leverage ratio at 4.0% of total assets; increased the minimum Tier 1 capital to risk-weighted assets requirement from 4.0% to 6.0% ; and retained the minimum total capital to risk weighted assets requirement at 8.0% . A “well-capitalized” institution must generally maintain capital ratios 100-200 basis points higher than the minimum guidelines. The Basel III Capital Rules also change the risk weights assigned to certain assets. The Basel III Capital Rules assigned a higher risk weight ( 150% ) to loans that are more than 90 days past due or are on nonaccrual status and to certain commercial real estate facilities that finance the acquisition, development or construction of real property. The Basel III Capital Rules also alter the risk weighting for other assets, including marketable equity securities that are risk weighted generally at 300% . The Basel III Capital Rules require certain components of accumulated other comprehensive income (loss) to be included for purposes of calculating regulatory capital requirements unless a one-time opt-out is exercised. The Bank did exercise its opt-out option and excludes the unrealized gain (loss) on investment securities component of accumulated other comprehensive income (loss) from regulatory capital. The Basel III Capital Rules limit a banking organization’s capital distributions and certain discretionary bonus payments to executive officers if the banking organization does not hold a “capital conservation buffer” consisting of 2.5% of common equity to risk weighted assets, in addition to the amounts necessary to meet the minimum risk-based capital requirements described above. As of January 1, 2019, the “capital conservation buffer” increased from 1.875% to 2.5% . Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. As of June 30, 2019 , the Bank and Company met all capital adequacy requirements to which they are subject. There are no conditions or events since then that management believes have changed this conclusion. The capital amounts and ratios for the Bank and the Company at June 30, 2019 and December 31, 2018 were as follows: Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions Actual Capital (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Bankwell Bank June 30, 2019 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 200,228 12.40 % $ 113,041 7.00 % $ 104,967 6.50 % Total Capital to Risk-Weighted Assets 214,118 13.26 % 169,562 10.50 % 161,488 10.00 % Tier I Capital to Risk-Weighted Assets 200,228 12.40 % 137,265 8.50 % 129,190 8.00 % Tier I Capital to Average Assets 200,228 10.75 % 74,533 4.00 % 93,166 5.00 % Bankwell Financial Group, Inc. June 30, 2019 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 181,078 11.19 % $ 113,247 7.00 % N/A N/A Total Capital to Risk-Weighted Assets 220,149 13.61 % 169,871 10.50 % N/A N/A Tier I Capital to Risk-Weighted Assets 181,078 11.19 % 137,514 8.50 % N/A N/A Tier I Capital to Average Assets 181,078 9.70 % 74,656 4.00 % N/A N/A Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions Actual Capital (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Bankwell Bank December 31, 2018 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 191,128 11.56 % $ 105,392 6.38 % $ 107,459 6.50 % Total Capital to Risk-Weighted Assets 206,593 12.50 % 163,255 9.88 % 165,321 10.00 % Tier I Capital to Risk-Weighted Assets 191,128 11.56 % 130,190 7.88 % 132,257 8.00 % Tier I Capital to Average Assets 191,128 10.14 % 75,432 4.00 % 94,290 5.00 % Bankwell Financial Group, Inc. December 31, 2018 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 172,415 10.41 % $ 105,575 6.38 % N/A N/A Total Capital to Risk-Weighted Assets 213,035 12.86 % 163,537 9.88 % N/A N/A Tier I Capital to Risk-Weighted Assets 172,415 10.41 % 130,416 7.88 % N/A N/A Tier I Capital to Average Assets 172,415 9.13 % 75,567 4.00 % N/A N/A Regulatory Restrictions on Dividends The ability of the Company to pay dividends depends, in part, on the ability of the Bank to pay dividends to the Company. In accordance with Connecticut statutes, regulatory approval is required to pay dividends in excess of the Bank’s profits retained in the current year plus retained profits from the previous two years. The Bank is also prohibited from paying dividends that would reduce its capital ratios below minimum regulatory requirements. Reserve Requirements on Cash The Bank is required to maintain a minimum reserve balance of $11.4 million and $16.8 million in the Federal Reserve Bank at June 30, 2019 and December 31, 2018 , respectively. The Bank is also required to maintain a minimum reserve balance of $4.5 million at Atlantic Community Bankers Bank (formerly Bankers’ Bank Northeast) at June 30, 2019 and December 31, 2018 . These balances are maintained for clearing purposes in the ordinary course of business and do not represent restricted cash. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Equity award plans The Company has stock options or unvested restricted stock outstanding under three equity award plans, which are collectively referred to as the “Plan”. The current plan under which any future issuances of equity awards will be made is the 2012 BNC Financial Group, Inc. Stock Plan, or the “2012 Plan,” last amended on June 26, 2013. All equity awards made under the 2012 Plan are made by means of an award agreement, which contains the specific terms and conditions of the grant. To date, all equity awards have been in the form of stock options or restricted stock. At June 30, 2019 , there were 593,597 shares reserved for future issuance under the 2012 Plan. Stock Options : The Company accounts for stock options based on the fair value at the date of grant and records an expense over the vesting period of such awards on a straight line basis. There were no options granted during the six months ended June 30, 2019 . A summary of the status of outstanding stock options for the six months ended June 30, 2019 is presented below: Six Months Ended June 30, 2019 Number of Shares Weighted Average Exercise Price Options outstanding at beginning of period 19,030 $ 15.91 Exercised (2,350 ) 13.14 Options outstanding at end of period 16,680 16.30 Options exercisable at end of period 16,680 16.30 Intrinsic value is the amount by which the fair value of the underlying stock exceeds the exercise price of an option on the exercise date. The total intrinsic value of share options exercised during the six months ended June 30, 2019 was $40.3 thousand . The range of exercise prices for the 16,680 options exercisable at June 30, 2019 was $11.00 to $17.86 per share. The weighted average remaining contractual life for these options was 3.0 years at June 30, 2019 . At June 30, 2019 , as all awarded options have vested, all of the outstanding options are exercisable, and the aggregate intrinsic value of these options was $0.2 million . Restricted Stock : Restricted stock provides grantees with rights to shares of common stock upon completion of a service period. Shares of unvested restricted stock are considered participating securities. Restricted stock awards generally vest over one to five years . The following table presents the activity for restricted stock for the six months ended June 30, 2019 : Six Months Ended June 30, 2019 Number of Shares Weighted Average Grant Date Fair Value Unvested at beginning of period 77,624 (1) $ 30.78 Granted 34,450 (2) 29.69 Vested (13,676 ) 31.23 Forfeited (3,800 ) 22.82 Unvested at end of period 94,598 30.63 (1) Includes 11,250 shares of performance based restricted stock (2) Includes 7,500 shares of performance based restricted stock The total fair value of restricted stock awards vested during the six months ended June 30, 2019 was $0.4 million . The Company's restricted stock expense for the six months ended June 30, 2019 and 2018 was $0.5 million and $0.6 million , respectively. At June 30, 2019 , there was $2.3 million of unrecognized stock compensation expense for restricted stock, expected to be recognized over a weighted average period of 1.7 years . Performance Based Restricted Stock : On February 20, 2018, the Company issued 11,250 shares of restricted stock with performance and service conditions and on March 18, 2019, the Company issued 7,500 shares of restricted stock with performance and service conditions pursuant to the Company’s 2012 Stock Plan. The awards vest over a three -year service period, provided certain performance metrics are met. The share quantity, which can range between 0% and 200% , of the grant is dependent on the degree to which the performance metrics are met. The Company records an expense over the vesting period based on (a) the probability that the performance metric will be met and (b) the fair market value of the Company’s stock at the date of the grant. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company manages economic risks, including interest rate, liquidity, and credit risk, by managing the amount, sources, and duration of its funding along with the use of interest rate derivative financial instruments, namely interest rate swaps. The Company does not use derivatives for speculative purposes. As of June 30, 2019 , the Company was a party to six interest rate swaps, designated as hedging instruments, to add stability to interest expense and to manage its exposure to interest rate movements. The notional amount for each swap is $25 million and in each case, the Company has entered into pay-fixed LIBOR interest rate swaps to convert rolling 90 days Federal Home Loan Bank advances. In addition, as of June 30, 2019 , the Company was a party to two forward-starting interest rate swaps on probable future FHLB advances or brokered deposits. As of June 30, 2019 , the Company entered into two interest rate swaps not designated as hedging instruments, to minimize interest rate risk exposure with loans to customers. The Company accounts for all non-borrower related interest rate swaps as effective cash flow hedges. None of the interest rate swap agreements contain any credit risk related contingent features. A hedging instrument is expected at inception to be highly effective at offsetting changes in the hedged transactions attributable to the changes in the hedged risk. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain loan customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting derivatives that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings. Interest rate swaps with a positive fair value are recorded as other assets and interest rate swaps with a negative fair value are recorded as other liabilities on the Consolidated Balance Sheets. Information about derivative instruments at June 30, 2019 and December 31, 2018 is as follows: June 30, 2019: (Dollars in thousands) Notional Amount Original Maturity Received Paid Fair Value Asset (Liability) Derivatives designated as hedging instruments: Interest rate swap $ 25,000 5.0 years 3-month USD LIBOR 1.83% $ 41 Interest rate swap 25,000 5.0 years 3-month USD LIBOR 1.48% 137 Interest rate swap 25,000 5.0 years 3-month USD LIBOR 1.22% 272 Interest rate swap 25,000 7.0 years 3-month USD LIBOR 2.04% (367 ) Interest rate swap 25,000 7.0 years 3-month USD LIBOR 2.04% (373 ) Interest rate swap 25,000 15.0 years 3-month USD LIBOR 3.01% (3,078 ) Forward-starting interest rate swap (1) 25,000 15.0 years 3-month USD LIBOR 3.03% (3,160 ) Forward-starting interest rate swap (1) 25,000 15.0 years 3-month USD LIBOR 3.05% (3,088 ) $ 200,000 $ (9,616 ) Derivatives not designated as hedging instruments: (2) Interest rate swap $ 20,000 20.0 years 1-month USD LIBOR 5.00% $ (1,537 ) Interest rate swap 20,000 20.0 years 1-month USD LIBOR 5.00% 1,537 $ 40,000 $ — Total derivatives $ 240,000 $ (9,616 ) (1) The effective date of the forward-starting interest rate swaps listed above are January 2, 2020 and August 26, 2020, respectively. (2) Represents an interest rate swap with a commercial banking customer, which is offset by a derivative with a third party. Accrued interest receivable related to interest rate swaps as of June 30, 2019 totaled $0.2 million and is excluded from the fair value presented in the table above. The fair value of interest rate swaps including accrued interest totaled $9.5 million as of June 30, 2019. December 31, 2018: (Dollars in thousands) Notional Amount Original Maturity Received Paid Fair Value Asset (Liability) Cash flow hedge: Interest rate swap $ 25,000 4.7 years 3-month USD LIBOR 1.62% $ 1 Interest rate swap 25,000 5.0 years 3-month USD LIBOR 1.83% 220 Interest rate swap 25,000 5.0 years 3-month USD LIBOR 1.48% 475 Interest rate swap 25,000 5.0 years 3-month USD LIBOR 1.22% 828 Interest rate swap 25,000 7.0 years 3-month USD LIBOR 2.04% 675 Interest rate swap 25,000 7.0 years 3-month USD LIBOR 2.04% 668 Forward-starting interest rate swap (1) 25,000 15.0 years 3-month USD LIBOR 3.01% (807 ) Forward-starting interest rate swap (1) 25,000 15.0 years 3-month USD LIBOR 3.03% (819 ) Forward-starting interest rate swap (1) 25,000 15.0 years 3-month USD LIBOR 3.05% (811 ) $ 225,000 $ 430 (1) The effective date of the forward-starting interest rate swaps listed above are January 2, 2019, January 2, 2020 and August 26, 2020, respectively. Accrued interest receivable related to interest rate swaps as of December 31, 2018 totaled $0.2 million and is excluded from the fair value presented in the table above. The fair value of interest rate swaps including accrued interest totaled $0.7 million as of December 31, 2018. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. The Company expects to reclassify $0.1 million as an increase to interest expense during the next 12 months. The Company assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged item or transaction. The interest rate swap assets are presented in other assets and the interest rate swap liabilities are presented in accrued expenses and other liabilities in the Consolidated Balance Sheets. The Company does not offset derivative assets and derivative liabilities for financial statement presentation purposes. The Company's cash flow hedge positions consist of interest rate swap transactions as detailed in the table below: Notional Amount Original Effective Date of Hedged Borrowing Duration of Borrowing Counterparty (Dollars in Thousands) $ 25,000 January 2, 2015 5.0 years Bank of Montreal 25,000 August 26, 2015 5.0 years Bank of Montreal 25,000 July 1, 2016 5.0 years Bank of Montreal 25,000 August 25, 2017 7.0 years Bank of Montreal 25,000 August 25, 2017 7.0 years FTN Financial Capital Markets 25,000 January 2, 2019 15.0 years Bank of Montreal $ 150,000 This hedge strategy converts the rate of interest on short term rolling FHLB advances or brokered deposits to long term fixed interest rates, thereby protecting the Company from interest rate variability. Changes in the consolidated statements of comprehensive income related to interest rate derivatives designated as hedges of cash flows were as follows for the three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2019 2018 2019 2018 Interest rate swap on FHLB advances and brokered deposits: Unrealized (losses) gains recognized in accumulated other comprehensive income $ (5,974 ) $ (187 ) $ (10,046 ) $ 1,815 Income tax benefit (expense) on items recognized in accumulated other comprehensive income 1,254 39 2,109 (381 ) Other comprehensive (loss) income $ (4,720 ) $ (148 ) $ (7,937 ) $ 1,434 Amount recognized in interest expense on hedged FHLB advances and brokered deposits $ 734 $ 646 $ 1,460 $ 1,285 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments GAAP requires disclosure of fair value information about financial instruments, whether or not recognized in the Consolidated Balance Sheets, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rates and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparisons to independent markets and, in many cases, could not be realized in immediate settlement of the instrument. Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates presented herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction. The estimated fair value amounts have been measured as of the respective period-ends, and have not been reevaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each period-end. The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk. The carrying values, fair values and placement in the fair value hierarchy of the Company's financial instruments at June 30, 2019 and December 31, 2018 were as follows: June 30, 2019 Carrying Value Fair Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and due from banks $ 75,647 $ 75,647 $ 75,647 $ — $ — Federal funds sold 3,237 3,237 3,237 — — Marketable equity securities 2,090 2,090 2,090 — — Available for sale securities 93,017 93,017 13,986 79,031 — Held to maturity securities 21,318 23,111 — 1,085 22,026 Loans receivable, net 1,551,620 1,558,609 — — 1,558,609 Other real estate owned 1,217 1,217 — — 1,217 Accrued interest receivable 6,165 6,165 — 6,165 — FHLB stock 7,475 7,475 — 7,475 — Servicing asset, net of valuation allowance 844 844 — — 844 Derivative asset 1,987 1,987 — 1,987 — Financial Liabilities: Noninterest bearing deposits $ 161,704 $ 161,704 $ — $ 161,704 $ — NOW and money market 502,178 502,178 — 502,178 — Savings 174,319 174,319 — 174,319 — Time deposits 639,530 643,354 — — 643,354 Accrued interest payable 1,895 1,895 — 1,895 — Advances from the FHLB 150,000 149,951 — — 149,951 Subordinated debentures 25,181 25,106 — — 25,106 Servicing liability 68 68 — — 68 Derivative liability 11,603 11,603 — 11,603 — December 31, 2018 Carrying Value Fair Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and due from banks $ 75,411 $ 75,411 $ 75,411 $ — $ — Federal funds sold 2,701 2,701 2,701 — — Marketable equity securities 2,009 2,009 2,009 — — Available for sale securities 93,154 93,154 9,798 83,356 — Held to maturity securities 21,421 21,988 — 1,098 20,890 Loans receivable, net 1,586,775 1,584,858 — — 1,584,858 Accrued interest receivable 6,375 6,375 — 6,375 — FHLB stock 8,110 8,110 — 8,110 — Servicing asset, net of valuation allowance 870 870 — — 870 Derivative asset 2,867 2,867 — 2,867 — Financial Liabilities: Noninterest bearing deposits $ 173,198 $ 173,198 $ — $ 173,198 $ — NOW and money market 533,837 533,837 — 533,837 — Savings 180,487 180,487 — 180,487 — Time deposits 614,722 616,973 — — 616,973 Accrued interest payable 1,381 1,381 — 1,381 — Advances from the FHLB 160,000 159,753 — — 159,753 Subordinated debentures 25,155 24,211 — — 24,211 Servicing liability 73 73 — — 73 Derivative liability 2,437 2,437 — 2,437 — The following methods and assumptions were used by management in estimating the fair value of its financial instruments: Cash and due from banks, federal funds sold, accrued interest receivable and accrued interest payable: The carrying amount is a reasonable estimate of fair value. Marketable equity securities, available for sale securities and held to maturity securities: Fair values are based on quoted market prices or dealer quotes, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. The majority of the available for sale securities are considered to be Level 2 as other observable inputs are utilized, such as quoted prices for similar securities. Level 1 investment securities include investments in U.S. treasury notes and in marketable equity securities for which a quoted price is readily available. Level 3 held to maturity securities represent private placement municipal housing authority bonds for which no quoted market price is available. The fair value for these securities is estimated using a discounted cash flow model, using discount rates ranging from 4.0% to 4.3% as of June 30, 2019 and 4.7% to 5.1% as of December 31, 2018 . These securities are CRA eligible investments. FHLB stock: The carrying value of FHLB stock approximates fair value based on the most recent redemption provisions of the FHLB. Loans receivable: For variable rate loans which reprice frequently and have no significant change in credit risk, fair values are based on carrying values. The fair value of fixed rate loans are estimated by discounting the future cash flows using the rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The fair value methodology includes prepayment, default and loss severity assumptions applied by the type of loan. The fair value estimate of the loans includes an expected credit loss. Other real estate owned: Fair values are generally determined based on third party appraisals which may be adjusted based on age of appraisal or market conditions identified while preparing the property to be listed for sale through broker quotes or otherwise. Appraisals are based on observable market data such as comparable sales, however, adjustments made to third party appraisals, for the age of the appraisal or market conditions identified while preparing the property to be listed for sale through broker quotes or otherwise are unobservable and therefore these assets are classified as Level 3 within the valuation hierarchy. Derivative asset (liability): The valuation of the Company’s interest rate swaps is obtained from a third-party pricing service and is determined using a discounted cash flow analysis on the expected cash flows of each derivative. The pricing analysis is based on observable inputs for the contractual terms of the derivatives, including the period to maturity and interest rate curves. The Company also considers the creditworthiness of each counterparty for assets and the creditworthiness of the Company for liabilities. Servicing asset (liability): Servicing assets and liabilities do not trade in an active, open market with readily observable prices. The Company estimates the fair value of servicing assets and liabilities using discounted cash flow models, incorporating numerous assumptions from the perspective of a market participant, including market discount rates. Deposits: The fair value of demand deposits, regular savings and certain money market deposits is the amount payable on demand at the reporting date. The fair value of certificates of deposit and other time deposits is estimated using a discounted cash flow calculation that applies interest rates currently being offered for deposits of similar remaining maturities to a schedule of aggregated expected maturities on such deposits. Borrowings and Subordinated Debentures: The fair value of the Company’s borrowings and subordinated debentures is estimated using a discounted cash flow calculation that applies discount rates currently offered based on similar maturities. The Company also considers its own creditworthiness in determining the fair value of its borrowings and subordinated debt. Contractual cash flows for the subordinated debt are reduced based on the estimated rates of default, the severity of losses to be incurred on a default, and the rates at which the subordinated debt is expected to prepay after the call date. Off-balance-sheet instruments: Loan commitments on which the committed interest rate is less than the current market rate are insignificant at June 30, 2019 and December 31, 2018 . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company is required to account for certain assets at fair value on a recurring or non-recurring basis. The Company determines fair value in accordance with GAAP, which defines fair value and establishes a framework for measuring fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. GAAP establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values: Level 1 — Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 — Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 — Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Valuation techniques based on unobservable inputs are highly subjective and require judgments regarding significant matters such as the amount and timing of future cash flows and the selection of discount rates that may appropriately reflect market and credit risks. Changes in these judgments often have a material impact on the fair value estimates. In addition, since these estimates are as of a specific point in time they are susceptible to material near-term changes. Financial instruments measured at fair value on a recurring basis The following table details the financial instruments carried at fair value on a recurring basis at June 30, 2019 and December 31, 2018 , and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value. The Company had no transfers into or out of Levels 1, 2 or 3 during the six months ended June 30, 2019 and for the year ended December 31, 2018 . Fair Value (In thousands) Level 1 Level 2 Level 3 June 30, 2019: Marketable equity securities $ 2,090 $ — $ — Available for sale investment securities: U.S. Government and agency obligations 13,986 78,530 — State agency and municipal obligations — 501 — Derivative asset — 1,987 — Derivative liability — 11,603 — December 31, 2018: Marketable equity securities $ 2,009 $ — $ — Available for sale investment securities: U.S. Government and agency obligations 9,798 72,338 — State agency and municipal obligations — 4,007 — Corporate bonds — 7,011 — Derivative asset — 2,867 — Derivative liability — 2,437 — Marketable equity securities and available for sale investment securities: The fair value of the Company’s investment securities are estimated by using pricing models or quoted prices of securities with similar characteristics (i.e., matrix pricing) and are classified within Level 1 or Level 2 of the valuation hierarchy. The pricing is primarily sourced from third party pricing services, overseen by management. Derivative assets and liabilities: The Company’s derivative assets and liabilities consist of transactions as part of management’s strategy to manage interest rate risk. The valuation of the Company’s interest rate swaps is obtained from a third-party pricing service and is determined using a discounted cash flow analysis on the expected cash flows of each derivative. The pricing analysis is based on observable inputs for the contractual terms of the derivatives, including the period to maturity and interest rate curves. The Company has determined that the majority of the inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy. Financial instruments measured at fair value on a nonrecurring basis Certain assets and liabilities are measured at fair value on a non-recurring basis in accordance with GAAP. These include assets that are measured at the lower-of-cost-or-market that were recognized at fair value below cost at the end of the period as well as assets that are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. The following table details the financial instruments measured at fair value on a nonrecurring basis at June 30, 2019 and December 31, 2018 , and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value: Fair Value (In thousands) Level 1 Level 2 Level 3 June 30, 2019: Impaired loans $ — $ — $ 14,847 Other real estate owned — — 1,217 Servicing asset, net — — 776 December 31, 2018: Impaired loans $ — $ — $ 18,709 Servicing asset, net — — 797 The following table presents information about quantitative inputs and assumptions for Level 3 financial instruments carried at fair value on a nonrecurring basis at June 30, 2019 and December 31, 2018 : Fair Value Valuation Methodology Unobservable Input Range (Dollars in thousands) June 30, 2019: Impaired loans $ 7,779 Appraisals Discount to appraised value 0.00 - 28.00% 7,068 Discounted cash flows Discount rate 3.60 - 8.00% $ 14,847 Other real estate owned $ 1,217 Appraisals Discount to appraised value 38.00 % Servicing asset, net $ 776 Discounted cash flows Discount rate 10.00 - 11.50% (1) Prepayment rate 3.00 - 17.15% December 31, 2018: Impaired loans $ 10,188 Appraisals Discount to appraised value 5.00 - 8.00% 8,521 Discounted cash flows Discount rate 3.25 - 8.00% $ 18,709 Servicing asset, net $ 797 Discounted cash flows Discount rate 10.00 - 12.00% (2) Prepayment rate 3.00 - 15.00% (1) Servicing liabilities totaling $68 thousand were valued using a discount rate of 1.9% (2) Servicing liabilities totaling $73 thousand were valued using a discount rate of 2.8% Impaired loans : Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Nonrecurring adjustments also include certain impairment amounts for collateral-dependent loans calculated in accordance with ASC 310-10 when establishing the allowance for credit losses. Such amounts are generally based on the fair value of the underlying collateral supporting the loan. Collateral is typically valued using appraisals or other indications of value based on recent comparable sales of similar properties or other assumptions. Estimates of fair value based on collateral are generally based on assumptions not observable in the marketplace and therefore such valuations have been classified as Level 3. For those loans where the primary source of repayment is cash flow from operations, adjustments include impairment amounts calculated based on the perceived collectability of interest payments on the basis of a discounted cash flow analysis utilizing a discount rate equivalent to the original note rate. Other real estate owned: The Company classifies property acquired through foreclosure or acceptance of deed-in lieu of foreclosure as other real estate owned in its financial statements. Upon taking title, the property securing the loan is written down to fair value less expected selling costs. The write-down is based upon differences between the estimated fair value and the net investment in the loan. Appraisals are based on observable market data such as comparable sales, however, adjustments made to third party appraisals, for the age of the appraisal or market conditions identified while preparing the property to be listed for sale through broker quotes or otherwise are unobservable and therefore these assets are classified as Level 3 within the valuation hierarchy. Servicing assets and liabilities: When loans are sold, on a servicing retained basis, servicing rights are initially recorded at fair value. All classes of servicing assets are subsequently measured using the amortization method, which requires servicing rights to be amortized. The fair value of servicing assets and liabilities are not measured on an ongoing basis but are subject to fair value adjustments when and if the assets or liabilities are deemed to be impaired. |
Subordinated debentures
Subordinated debentures | 6 Months Ended |
Jun. 30, 2019 | |
Subordinated Borrowings [Abstract] | |
Subordinated debentures | Subordinated debentures On August 19, 2015, the Company completed a private placement of $25.5 million in aggregate principal amount of fixed rate subordinated notes (the “Notes”) to certain institutional investors. The Notes are non-callable for five years, have a stated maturity of August 15, 2025 , and bear interest at a quarterly pay fixed rate of 5.75% per annum to the maturity date or the early redemption date. The Notes have been structured to qualify for the Company as Tier 2 capital under regulatory guidelines. We used the net proceeds for general corporate purposes, which included maintaining liquidity at the holding company, providing equity capital to the Bank to fund balance sheet growth and the Company's working capital needs. The Notes were assigned an investment grade rating of BBB by Kroll Bond Rating Agency, which was reaffirmed in the third quarter of 2018. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases Effective January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842). As of June 30, 2019, the Company leases real estate for ten branch offices under various operating lease agreements. The branch leases have maturities which range from 2019 to 2029, some of which include options to extend the lease term. The weighted average remaining life of the lease term for these leases was 6.8 years as of June 30, 2019. In addition, the Company’s headquarter building (included in premises and equipment) is on land that is leased from the local municipality. As of June 30, 2019 the land lease has a remaining life of 81.1 years . The Company utilized a weighted average discount rate of 6.0% in determining the lease liability as of June 30, 2019. The total operating lease costs were $0.5 million and $1.0 million for the three and six months ended June 30, 2019, respectively. The right-of-use asset, included in premises and equipment, net was $9.9 million as of June 30, 2019 and the corresponding lease liability, included in accrued expenses and other liabilities was $9.9 million as of June 30, 2019. Future minimum lease payments as of June 30, 2019 are as follows: June 30, 2019 (In thousands) 2019 $ 995 2020 1,842 2021 1,739 2022 1,118 2023 1,134 Thereafter 15,898 Total $ 22,726 A reconciliation of the undiscounted cash flows in the maturity table above and the lease liability recognized in the consolidated balance sheet as of June 30, 2019, is shown below: June 30, 2019 (In thousands) Undiscounted cash flows $ 22,726 Discount effect of cash flows (12,791 ) Lease liability $ 9,935 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 30, 2019, the Company’s Board of Directors declared a $0.13 per share cash dividend, payable on August 26, 2019 to shareholders of record on August 16, 2019. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the accounts of the Company and the Bank, including its wholly owned passive investment company subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of estimates | Use of estimates The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and general practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities as of the date of the consolidated balance sheet, and revenue and expenses for the period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the allowance for loan losses, the valuation of derivative instruments, investment securities and deferred income taxes, and the evaluation of investment securities for other than temporary impairment. |
Basis of consolidated financial statement presentation | Basis of consolidated financial statement presentation The unaudited consolidated financial statements presented herein have been prepared pursuant to the rules of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and Rule 10-1 of Regulation S-X and do not include all of the information and note disclosures required by GAAP. In the opinion of management, all adjustments (consisting of normal recurring adjustments) and disclosures considered necessary for the fair presentation of the accompanying unaudited interim consolidated financial statements have been included. Interim results are not necessarily reflective of the results that may be expected for the year ending December 31, 2019 . The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included on Form 10-K for the year ended December 31, 2018 . |
Significant concentrations of credit risk | Significant concentrations of credit risk Most of the Company’s activities are with customers located in the New York metropolitan area and throughout Fairfield and New Haven Counties and the surrounding region of Connecticut. Declines in property values in these areas could significantly impact the Company. The Company has a significant concentration in commercial real estate loans. Management does not believe this presents any special risk as loans are subject to an appropriate credit risk monitoring process. The Company does not have any significant concentrations in any one industry or customer. |
Common Shares Repurchases | Common Share Repurchases The Company is incorporated in the state of Connecticut. Connecticut law does not provide for treasury shares, rather shares repurchased by the Company constitute authorized, but unissued shares. GAAP states that accounting for treasury stock shall conform to state law. Therefore, the cost of shares repurchased by the Company has been allocated to common stock balances. |
Reclassification | Reclassification Certain prior period amounts have been reclassified to conform to the 2019 financial statement presentation. These reclassifications only changed the reporting categories and did not affect the consolidated results of operations or consolidated financial position of the Company. |
Recent accounting pronouncements | Recent accounting pronouncements The following section includes changes in accounting principles and potential effects of new accounting guidance and pronouncements. Recently issued accounting pronouncements not yet adopted ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): “Measurement of Credit Losses on Financial Instruments.” This ASU changes the impairment model for most financial assets and certain other instruments. For trade and other receivables, held to maturity debt securities, loans and other instruments, entities will be required to use a new forward-looking “expected loss” model that will replace today’s “incurred loss” model and can result in the earlier recognition of credit losses. For available for sale debt securities with unrealized losses, entities will measure credit losses in a manner similar to current practice, except that the losses will be recognized as an allowance. This update will be effective for the Company on January 1, 2020, including interim periods within that fiscal year. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Management is currently working with third-party consultants and continues to evaluate the impact of its pending adoption of this guidance on the Company's financial statements. On July 17, 2019, the FASB proposed deferring the effective date of ASC 326 for smaller reporting companies as defined by the SEC. Subject to any additional guidance or clarification from the FASB or the SEC, management believes the Company will qualify for this proposed deferral. The FASB has proposed a three-year deferral for smaller reporting companies, with an effective date of January 1, 2023. The deferral period may be reduced if the Company no longer meets the definition of a smaller reporting company. The Company will continue to monitor the progress of this proposal. ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): “Simplifying the Test for Goodwill Impairment.” This ASU simplifies the test for goodwill impairment by eliminating Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity was required to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, this ASU also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. Therefore, the same impairment assessment applies to all reporting units. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendments will be effective for the Company for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the application of this guidance to have a material impact on the Company’s financial statements. ASU No. 2018-13, Fair Value Measurement (Topic 820) : “Changes to the Disclosure Requirements for Fair Value Measurement.” The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The following disclosure requirements were removed from topic 820 for public entities: (1) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (2) the policy for timing of transfers between levels and (3) the valuation processes for Level 3 fair value measurements. This update also modified and added disclosure requirements to Topic 820, including adding (1) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and (2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 will be effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods in the year of adoption. Early adoption is permitted for any interim or annual period. The Company does not expect the application of this guidance to have a material impact on the Company’s financial statements. Recently adopted accounting pronouncements ASU No. 2016-02, Leases (Topic 842): The amendments in this ASU require lessees to recognize, on the balance sheet, assets and liabilities for the rights and obligations created by operating leases. Accounting by lessors will remain largely unchanged. In July 2018, the FASB issued a subsequent update which introduced a new transition method, under which, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The guidance was effective for the Company on January 1, 2019. The Company recognized $0.5 million , net of tax, as a cumulative-effect adjustment to the opening balance of retained earnings at the time of adoption on January 1, 2019. In addition, the Company recorded a right of use asset totaling $10.6 million and a lease liability totaling $10.6 million on the balance sheet for the Company's outstanding lease obligations on January 1, 2019. The Company utilized a 6% discount rate to calculate the present value of the right of use asset and lease liability on January 1, 2019. The right of use asset is disclosed within premises and equipment, net on the balance sheet and the lease liability is disclosed within accrued expenses and other liabilities on the balance sheet. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost, gross unrealized gains and losses and fair values of available for sale and held to maturity securities | The amortized cost, gross unrealized gains and losses and fair value of available for sale and held to maturity securities at June 30, 2019 were as follows: June 30, 2019 Amortized Cost Gross Unrealized Fair Value Gains Losses (In thousands) Available for sale securities: U.S. Government and agency obligations Less than one year $ 4,980 $ 3 $ (4 ) $ 4,979 Due from one through five years 12,037 66 (10 ) 12,093 Due from five through ten years 8,395 195 — 8,590 Due after ten years 66,256 608 (10 ) 66,854 91,668 872 (24 ) 92,516 State agency and municipal obligations Due from five through ten years 500 1 — 501 Total available for sale securities $ 92,168 $ 873 $ (24 ) $ 93,017 Held to maturity securities: State agency and municipal obligations Less than one year $ 3,900 $ — $ — $ 3,900 Due after ten years 16,334 1,792 — 18,126 20,234 1,792 — 22,026 Corporate bonds Less than one year 1,000 — (6 ) 994 Government-sponsored mortgage backed securities No contractual maturity 84 7 — 91 Total held to maturity securities $ 21,318 $ 1,799 $ (6 ) $ 23,111 The amortized cost, gross unrealized gains and losses and fair value of available for sale and held to maturity securities at December 31, 2018 were as follows: December 31, 2018 Amortized Cost Gross Unrealized Fair Value Gains Losses (In thousands) Available for sale securities: U.S. Government and agency obligations Less than one year $ 1,000 $ — $ (11 ) $ 989 Due from one through five years 12,025 — (161 ) 11,864 Due from five through ten years 100 — (5 ) 95 Due after ten years 70,690 7 (1,509 ) 69,188 83,815 7 (1,686 ) 82,136 State agency and municipal obligations Due from one through five years 2,234 18 — 2,252 Due from five through ten years 1,261 18 — 1,279 Due after ten years 528 — (52 ) 476 4,023 36 (52 ) 4,007 Corporate bonds Due from one through five years 7,061 — (50 ) 7,011 Total available for sale securities $ 94,899 $ 43 $ (1,788 ) $ 93,154 Held to maturity securities: State agency and municipal obligations Less than one year $ 3,894 $ 6 $ — $ 3,900 Due after ten years 16,434 669 (113 ) 16,990 20,328 675 (113 ) 20,890 Corporate bonds Less than one year 1,000 — — 1,000 Government-sponsored mortgage backed securities No contractual maturity 93 5 — 98 Total held to maturity securities $ 21,421 $ 680 $ (113 ) $ 21,988 |
Schedule of fair value and related unrealized losses of temporarily impaired investment securities, aggregated by investment category | The following table provides information regarding investment securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2019 and December 31, 2018 : Length of Time in Continuous Unrealized Loss Position Less Than 12 Months 12 Months or More Total Fair Value Unrealized Loss Percent Decline from Amortized Cost Fair Value Unrealized Loss Percent Decline from Amortized Cost Fair Value Unrealized Loss Percent Decline from Amortized Cost (Dollars in thousands) June 30, 2019 U.S. Government and agency obligations $ — $ — — % $ 4,291 $ (24 ) 0.56 % $ 4,291 $ (24 ) 0.56 % Corporate bonds 994 (6 ) 0.63 % — — — % 994 (6 ) 0.63 % Total investment securities $ 994 $ (6 ) 0.63 % $ 4,291 $ (24 ) 0.56 % $ 5,285 $ (30 ) 0.57 % December 31, 2018 U.S. Government and agency obligations $ 4,990 $ (38 ) 0.75 % $ 72,676 $ (1,648 ) 2.22 % $ 77,666 $ (1,686 ) 2.12 % State agency and municipal obligations 8,212 (113 ) 1.36 % 476 (52 ) 9.87 % 8,688 (165 ) 1.87 % Corporate bonds 2,033 (11 ) 0.51 % 4,978 (39 ) 0.78 % 7,011 (50 ) 0.70 % Total investment securities $ 15,235 $ (162 ) 1.05 % $ 78,130 $ (1,739 ) 2.18 % $ 93,365 $ (1,901 ) 2.00 % |
Loans Receivable and Allowanc_2
Loans Receivable and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Schedule of loan portfolio | The following table sets forth a summary of the loan portfolio at June 30, 2019 and December 31, 2018 : (In thousands) June 30, 2019 December 31, 2018 Real estate loans: Residential $ 164,066 $ 178,079 Commercial 1,080,846 1,094,066 Construction 89,236 73,191 1,334,148 1,345,336 Commercial business 233,364 258,978 Consumer 297 412 Total loans 1,567,809 1,604,726 Allowance for loan losses (13,890 ) (15,462 ) Deferred loan origination fees, net (2,302 ) (2,497 ) Unamortized loan premiums 3 8 Loans receivable, net $ 1,551,620 $ 1,586,775 |
Schedule of allowance for loan losses | The following tables set forth the activity in the Company’s allowance for loan losses for the three and six months ended June 30, 2019 and 2018 , by portfolio segment: Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Three Months Ended June 30, 2019 Beginning balance $ 719 $ 11,646 $ 213 $ 2,851 $ 1 $ 15,430 Charge-offs (565 ) — — (130 ) (13 ) (708 ) Recoveries — — — 6 3 9 Provisions (Credits) 769 (1,736 ) 46 70 10 (841 ) Ending balance $ 923 $ 9,910 $ 259 $ 2,797 $ 1 $ 13,890 Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Three Months Ended June 30, 2018 Beginning balance $ 1,695 $ 12,645 $ 767 $ 3,692 $ 2 $ 18,801 Charge-offs (56 ) — — — (57 ) (113 ) Recoveries — — — 4 4 8 (Credits) Provisions (889 ) 1,540 (286 ) (107 ) 52 310 Ending balance $ 750 $ 14,185 $ 481 $ 3,589 $ 1 $ 19,006 Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Six Months Ended June 30, 2019 Beginning balance $ 857 $ 11,562 $ 140 $ 2,902 $ 1 $ 15,462 Charge-offs (797 ) — — (136 ) (13 ) (946 ) Recoveries — — — 16 4 20 Provisions (Credits) 863 (1,652 ) 119 15 9 (646 ) Ending balance $ 923 $ 9,910 $ 259 $ 2,797 $ 1 $ 13,890 Residential Real Estate Commercial Real Estate Construction Commercial Business Consumer Total (In thousands) Six Months Ended June 30, 2018 Beginning balance $ 1,721 $ 12,777 $ 907 $ 3,498 $ 1 $ 18,904 Charge-offs (56 ) (18 ) — (96 ) (60 ) (230 ) Recoveries — — — 4 5 9 (Credits) Provisions (915 ) 1,426 (426 ) 183 55 323 Ending balance $ 750 $ 14,185 $ 481 $ 3,589 $ 1 $ 19,006 |
Schedule of portfolio segment and impairment methodology, of the allowance for loan losses and related portfolio | Loans evaluated for impairment and the related allowance for loan losses as of June 30, 2019 and December 31, 2018 were as follows: Portfolio Allowance (In thousands) June 30, 2019 Loans individually evaluated for impairment: Residential real estate $ 4,202 $ 107 Commercial real estate 4,986 97 Commercial business 6,663 801 Consumer 1 — Subtotal 15,852 1,005 Loans collectively evaluated for impairment: Residential real estate 159,864 816 Commercial real estate 1,075,860 9,813 Construction 89,236 259 Commercial business 226,701 1,996 Consumer 296 1 Subtotal 1,551,957 12,885 Total $ 1,567,809 $ 13,890 Portfolio Allowance (In thousands) December 31, 2018 Loans individually evaluated for impairment: Residential real estate $ 6,534 $ 233 Commercial real estate 6,383 — Commercial business 6,155 133 Consumer 3 — Subtotal 19,075 366 Loans collectively evaluated for impairment: Residential real estate 171,545 624 Commercial real estate 1,087,683 11,562 Construction 73,191 140 Commercial business 252,823 2,769 Consumer 409 1 Subtotal 1,585,651 15,096 Total $ 1,604,726 $ 15,462 |
Schedule of loan portfolio quality indicators by portfolio segment | The following tables present credit risk ratings by loan segment as of June 30, 2019 and December 31, 2018 : Commercial Credit Quality Indicators June 30, 2019 December 31, 2018 Commercial Real Estate Construction Commercial Business Total Commercial Real Estate Construction Commercial Business Total (In thousands) Pass $ 1,071,360 $ 89,236 $ 213,497 $ 1,374,093 $ 1,084,695 $ 73,191 $ 237,933 $ 1,395,819 Special Mention 4,500 — 13,204 17,704 2,988 — 14,890 17,878 Substandard 2,497 — 4,023 6,520 2,516 — 2,592 5,108 Doubtful 2,489 — 2,640 5,129 3,867 — 3,563 7,430 Loss — — — — — — — — Total loans $ 1,080,846 $ 89,236 $ 233,364 $ 1,403,446 $ 1,094,066 $ 73,191 $ 258,978 $ 1,426,235 Residential and Consumer Credit Quality Indicators June 30, 2019 December 31, 2018 Residential Real Estate Consumer Total Residential Real Estate Consumer Total (In thousands) Pass $ 159,734 $ 296 $ 160,030 $ 171,415 $ 409 $ 171,824 Special Mention 130 — 130 130 — 130 Substandard 4,202 1 4,203 6,534 3 6,537 Doubtful — — — — — — Loss — — — — — — Total loans $ 164,066 $ 297 $ 164,363 $ 178,079 $ 412 $ 178,491 |
Schedule of information with respect to our loan portfolio delinquencies by portfolio segment and amount | The following tables set forth certain information with respect to the Company's loan portfolio delinquencies by portfolio segment as of June 30, 2019 and December 31, 2018 : June 30, 2019 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans (In thousands) Real estate loans: Residential real estate $ 1,389 $ — $ 394 $ 1,783 $ 162,283 $ 164,066 Commercial real estate 551 3,439 3,083 7,073 1,073,773 1,080,846 Construction — — — — 89,236 89,236 Commercial business 657 273 4,215 5,145 228,219 233,364 Consumer — — — — 297 297 Total loans $ 2,597 $ 3,712 $ 7,692 $ 14,001 $ 1,553,808 $ 1,567,809 December 31, 2018 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Loans (In thousands) Real estate loans: Residential real estate $ 994 $ — $ 2,203 $ 3,197 $ 174,882 $ 178,079 Commercial real estate 668 133 4,386 5,187 1,088,879 1,094,066 Construction — — — — 73,191 73,191 Commercial business — 1 4,076 4,077 254,901 258,978 Consumer — — — — 412 412 Total loans $ 1,662 $ 134 $ 10,665 $ 12,461 $ 1,592,265 $ 1,604,726 |
Schedule of nonaccrual loans by portfolio segment | The following is a summary of nonaccrual loans by portfolio segment as of June 30, 2019 and December 31, 2018 : June 30, 2019 December 31, 2018 (In thousands) Residential real estate $ 1,716 $ 3,812 Commercial real estate 4,535 5,950 Commercial business 5,437 4,320 Total $ 11,688 $ 14,082 |
Schedule of summarizes impaired loans | The following table summarizes impaired loans by portfolio segment as of June 30, 2019 and December 31, 2018 : Carrying Amount Unpaid Principal Balance Associated Allowance June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 (In thousands) Impaired loans without a valuation allowance: Residential real estate $ 4,094 $ 4,520 $ 4,192 $ 4,613 $ — $ — Commercial real estate 2,376 6,383 2,615 12,191 — — Commercial business 1,980 5,212 2,263 6,051 — — Consumer 1 3 1 3 — — Total impaired loans without a valuation allowance 8,451 16,118 9,071 22,858 — — Impaired loans with a valuation allowance: Residential real estate $ 108 $ 2,014 $ 108 $ 2,054 $ 107 $ 233 Commercial real estate 2,610 — 8,236 — 97 — Commercial business 4,683 943 5,333 945 801 133 Total impaired loans with a valuation allowance 7,401 2,957 13,677 2,999 1,005 366 Total impaired loans $ 15,852 $ 19,075 $ 22,748 $ 25,857 $ 1,005 $ 366 The following table summarizes the average carrying amount of impaired loans and interest income recognized on impaired loans by portfolio segment as of June 30, 2019 and June 30, 2018 : Average Carrying Amount Interest Income Recognized Three Months Ended June 30, Three Months Ended June 30, 2019 2018 2019 2018 (In thousands) Impaired loans without a valuation allowance: Residential real estate $ 4,112 $ 7,334 $ 31 $ 29 Commercial real estate 2,411 8,827 4 4 Commercial business 2,117 2,060 48 76 Consumer 2 6 — — Total impaired loans without a valuation allowance 8,642 18,227 83 109 Impaired loans with a valuation allowance: Residential real estate $ 108 $ — $ — $ — Commercial real estate 3,301 15,168 1 — Commercial business 4,078 3,222 8 3 Total impaired loans with a valuation allowance 7,487 18,390 9 3 Total impaired loans $ 16,129 $ 36,617 $ 92 $ 112 Average Carrying Amount Interest Income Recognized Six Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands) Impaired loans without a valuation allowance: Residential real estate $ 4,129 $ 7,347 $ 60 $ 77 Commercial real estate 2,440 8,878 9 80 Commercial business 2,157 2,086 93 154 Consumer 2 6 — — Total impaired loans without a valuation allowance 8,728 18,317 162 311 Impaired loans with a valuation allowance: Residential real estate $ 108 $ — $ — $ — Commercial real estate 3,593 15,170 2 53 Commercial business 4,271 2,347 44 25 Total impaired loans with a valuation allowance 7,972 17,517 46 78 Total impaired loans $ 16,700 $ 35,834 $ 208 $ 389 |
Schedule of loans whose terms were modified as TDRs during the periods | The following table provides information on loans that were modified as TDRs during the periods indicated. Outstanding Recorded Investment Number of Loans Pre-Modification Post-Modification (Dollars in thousands) 2019 2018 2019 2018 2019 2018 Three Months Ended June 30, Residential real estate 1 — $ 34 $ — $ 34 $ — Commercial business 2 — 465 — 465 — Total 3 — $ 499 $ — $ 499 $ — Outstanding Recorded Investment Number of Loans Pre-Modification Post-Modification (Dollars in thousands) 2019 2018 2019 2018 2019 2018 Six Months Ended June 30, Residential real estate 1 2 $ 34 $ 2,826 $ 34 $ 2,822 Commercial business 2 1 465 37 465 29 Total 3 3 $ 499 $ 2,863 $ 499 $ 2,851 |
Schedule of information on how loans were modified as a TDR | The following table provides information on how loans were modified as TDRs during the three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands) Payment concession $ — $ — $ — $ 2,101 Maturity concession 125 — 125 — Maturity and payment concession — — — 750 Rate and payment concession 374 — 374 — Total $ 499 $ — $ 499 $ 2,851 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of changes in accumulated other comprehensive income (loss) by component | The following tables present the changes in accumulated other comprehensive income (loss) by component, net of tax for the three and six months ended June 30, 2019 and 2018 : Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at March 31, 2019 $ (281 ) $ (2,875 ) $ (3,156 ) Other comprehensive income (loss) before reclassifications, net of tax 1,011 (4,720 ) (3,709 ) Amounts reclassified from accumulated other comprehensive income, net of tax (60 ) — (60 ) Net other comprehensive income (loss) 951 (4,720 ) (3,769 ) Balance at June 30, 2019 $ 670 $ (7,595 ) $ (6,925 ) Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at March 31, 2018 $ (1,302 ) $ 3,191 $ 1,889 Other comprehensive loss before reclassifications, net of tax (462 ) (148 ) (610 ) Net other comprehensive loss (462 ) (148 ) (610 ) Balance at June 30, 2018 $ (1,764 ) $ 3,043 $ 1,279 Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at December 31, 2018 $ (1,379 ) $ 342 $ (1,037 ) Other comprehensive income (loss) before reclassifications, net of tax 2,109 (7,937 ) (5,828 ) Amounts reclassified from accumulated other comprehensive income, net of tax (60 ) — (60 ) Net other comprehensive income (loss) 2,049 (7,937 ) (5,888 ) Balance at June 30, 2019 $ 670 $ (7,595 ) $ (6,925 ) Net Unrealized Gain (Loss) on Available for Sale Securities Net Unrealized Gain (Loss) on Interest Rate Swaps Total (In thousands) Balance at December 31, 2017 $ 85 $ 1,609 $ 1,694 Other comprehensive (loss) income before reclassifications, net of tax (1,674 ) 1,434 (240 ) Amounts reclassified from accumulated other comprehensive income, net of tax (175 ) — (175 ) Net other comprehensive (loss) income (1,849 ) 1,434 (415 ) Balance at June 30, 2018 $ (1,764 ) $ 3,043 $ 1,279 |
Schedule of reclassified from accumulated other comprehensive income or loss | The following table provides information for the items reclassified from accumulated other comprehensive income or loss: Accumulated Other Comprehensive Income Components Three Months Ended June 30, Six Months Ended June 30, Associated Line Item in the Consolidated Statements of Income 2019 2018 2019 2018 (In thousands) Available for sale securities: Unrealized gains on investments $ 76 $ — $ 76 $ 222 Net gain on sale of available for sale securities Tax expense (16 ) — (16 ) (47 ) Income tax expense Net of tax $ 60 $ — $ 60 $ 175 |
Earnings per Share ("EPS") (Tab
Earnings per Share ("EPS") (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of earnings available to common stockholders and basic weighted-average common shares outstanding to diluted weighted average common shares outstanding | The following table is a reconciliation of earnings available to common shareholders and basic weighted average common shares outstanding to diluted weighted average common shares outstanding, reflecting the application of the two-class method: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (In thousands, except per share data) Net income $ 5,576 $ 4,715 $ 10,656 $ 9,315 Dividends to participating securities (1) (13 ) (13 ) (23 ) (26 ) Undistributed earnings allocated to participating securities (1) (56 ) (54 ) (99 ) (101 ) Net income for earnings per share calculation $ 5,507 $ 4,648 $ 10,534 $ 9,188 Weighted average shares outstanding, basic 7,773 7,723 7,767 7,700 Effect of dilutive equity-based awards (2) 18 39 25 47 Weighted average shares outstanding, diluted 7,791 7,762 7,792 7,747 Net earnings per common share: Basic earnings per common share $ 0.71 $ 0.60 $ 1.36 $ 1.19 Diluted earnings per common share $ 0.71 $ 0.60 $ 1.35 $ 1.19 (1) Represents dividends paid and undistributed earnings allocated to unvested stock-based awards that contain non-forfeitable rights to dividends. (2) Represents the effect of the assumed exercise of stock options and the vesting of restricted shares, as applicable, utilizing the treasury stock method. |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of capital amounts and ratios | The capital amounts and ratios for the Bank and the Company at June 30, 2019 and December 31, 2018 were as follows: Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions Actual Capital (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Bankwell Bank June 30, 2019 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 200,228 12.40 % $ 113,041 7.00 % $ 104,967 6.50 % Total Capital to Risk-Weighted Assets 214,118 13.26 % 169,562 10.50 % 161,488 10.00 % Tier I Capital to Risk-Weighted Assets 200,228 12.40 % 137,265 8.50 % 129,190 8.00 % Tier I Capital to Average Assets 200,228 10.75 % 74,533 4.00 % 93,166 5.00 % Bankwell Financial Group, Inc. June 30, 2019 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 181,078 11.19 % $ 113,247 7.00 % N/A N/A Total Capital to Risk-Weighted Assets 220,149 13.61 % 169,871 10.50 % N/A N/A Tier I Capital to Risk-Weighted Assets 181,078 11.19 % 137,514 8.50 % N/A N/A Tier I Capital to Average Assets 181,078 9.70 % 74,656 4.00 % N/A N/A Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer Minimum Regulatory Capital to be Well Capitalized Under Prompt Corrective Action Provisions Actual Capital (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Bankwell Bank December 31, 2018 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 191,128 11.56 % $ 105,392 6.38 % $ 107,459 6.50 % Total Capital to Risk-Weighted Assets 206,593 12.50 % 163,255 9.88 % 165,321 10.00 % Tier I Capital to Risk-Weighted Assets 191,128 11.56 % 130,190 7.88 % 132,257 8.00 % Tier I Capital to Average Assets 191,128 10.14 % 75,432 4.00 % 94,290 5.00 % Bankwell Financial Group, Inc. December 31, 2018 Common Equity Tier 1 Capital to Risk-Weighted Assets $ 172,415 10.41 % $ 105,575 6.38 % N/A N/A Total Capital to Risk-Weighted Assets 213,035 12.86 % 163,537 9.88 % N/A N/A Tier I Capital to Risk-Weighted Assets 172,415 10.41 % 130,416 7.88 % N/A N/A Tier I Capital to Average Assets 172,415 9.13 % 75,567 4.00 % N/A N/A |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of status of outstanding stock options | A summary of the status of outstanding stock options for the six months ended June 30, 2019 is presented below: Six Months Ended June 30, 2019 Number of Shares Weighted Average Exercise Price Options outstanding at beginning of period 19,030 $ 15.91 Exercised (2,350 ) 13.14 Options outstanding at end of period 16,680 16.30 Options exercisable at end of period 16,680 16.30 |
Schedule of activity for restricted stock | The following table presents the activity for restricted stock for the six months ended June 30, 2019 : Six Months Ended June 30, 2019 Number of Shares Weighted Average Grant Date Fair Value Unvested at beginning of period 77,624 (1) $ 30.78 Granted 34,450 (2) 29.69 Vested (13,676 ) 31.23 Forfeited (3,800 ) 22.82 Unvested at end of period 94,598 30.63 (1) Includes 11,250 shares of performance based restricted stock (2) Includes 7,500 shares of performance based restricted stock |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments | Information about derivative instruments at June 30, 2019 and December 31, 2018 is as follows: June 30, 2019: (Dollars in thousands) Notional Amount Original Maturity Received Paid Fair Value Asset (Liability) Derivatives designated as hedging instruments: Interest rate swap $ 25,000 5.0 years 3-month USD LIBOR 1.83% $ 41 Interest rate swap 25,000 5.0 years 3-month USD LIBOR 1.48% 137 Interest rate swap 25,000 5.0 years 3-month USD LIBOR 1.22% 272 Interest rate swap 25,000 7.0 years 3-month USD LIBOR 2.04% (367 ) Interest rate swap 25,000 7.0 years 3-month USD LIBOR 2.04% (373 ) Interest rate swap 25,000 15.0 years 3-month USD LIBOR 3.01% (3,078 ) Forward-starting interest rate swap (1) 25,000 15.0 years 3-month USD LIBOR 3.03% (3,160 ) Forward-starting interest rate swap (1) 25,000 15.0 years 3-month USD LIBOR 3.05% (3,088 ) $ 200,000 $ (9,616 ) Derivatives not designated as hedging instruments: (2) Interest rate swap $ 20,000 20.0 years 1-month USD LIBOR 5.00% $ (1,537 ) Interest rate swap 20,000 20.0 years 1-month USD LIBOR 5.00% 1,537 $ 40,000 $ — Total derivatives $ 240,000 $ (9,616 ) (1) The effective date of the forward-starting interest rate swaps listed above are January 2, 2020 and August 26, 2020, respectively. (2) Represents an interest rate swap with a commercial banking customer, which is offset by a derivative with a third party. December 31, 2018: (Dollars in thousands) Notional Amount Original Maturity Received Paid Fair Value Asset (Liability) Cash flow hedge: Interest rate swap $ 25,000 4.7 years 3-month USD LIBOR 1.62% $ 1 Interest rate swap 25,000 5.0 years 3-month USD LIBOR 1.83% 220 Interest rate swap 25,000 5.0 years 3-month USD LIBOR 1.48% 475 Interest rate swap 25,000 5.0 years 3-month USD LIBOR 1.22% 828 Interest rate swap 25,000 7.0 years 3-month USD LIBOR 2.04% 675 Interest rate swap 25,000 7.0 years 3-month USD LIBOR 2.04% 668 Forward-starting interest rate swap (1) 25,000 15.0 years 3-month USD LIBOR 3.01% (807 ) Forward-starting interest rate swap (1) 25,000 15.0 years 3-month USD LIBOR 3.03% (819 ) Forward-starting interest rate swap (1) 25,000 15.0 years 3-month USD LIBOR 3.05% (811 ) $ 225,000 $ 430 (1) The effective date of the forward-starting interest rate swaps listed above are January 2, 2019, January 2, 2020 and August 26, 2020, respectively. |
Schedule of interest rate swap transactions | The Company's cash flow hedge positions consist of interest rate swap transactions as detailed in the table below: Notional Amount Original Effective Date of Hedged Borrowing Duration of Borrowing Counterparty (Dollars in Thousands) $ 25,000 January 2, 2015 5.0 years Bank of Montreal 25,000 August 26, 2015 5.0 years Bank of Montreal 25,000 July 1, 2016 5.0 years Bank of Montreal 25,000 August 25, 2017 7.0 years Bank of Montreal 25,000 August 25, 2017 7.0 years FTN Financial Capital Markets 25,000 January 2, 2019 15.0 years Bank of Montreal $ 150,000 |
Schedule of changes in the consolidated statements of comprehensive income related to interest rate derivatives designated as hedges of cash flows | Changes in the consolidated statements of comprehensive income related to interest rate derivatives designated as hedges of cash flows were as follows for the three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2019 2018 2019 2018 Interest rate swap on FHLB advances and brokered deposits: Unrealized (losses) gains recognized in accumulated other comprehensive income $ (5,974 ) $ (187 ) $ (10,046 ) $ 1,815 Income tax benefit (expense) on items recognized in accumulated other comprehensive income 1,254 39 2,109 (381 ) Other comprehensive (loss) income $ (4,720 ) $ (148 ) $ (7,937 ) $ 1,434 Amount recognized in interest expense on hedged FHLB advances and brokered deposits $ 734 $ 646 $ 1,460 $ 1,285 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying values and fair values of the Company s financial instruments | The carrying values, fair values and placement in the fair value hierarchy of the Company's financial instruments at June 30, 2019 and December 31, 2018 were as follows: June 30, 2019 Carrying Value Fair Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and due from banks $ 75,647 $ 75,647 $ 75,647 $ — $ — Federal funds sold 3,237 3,237 3,237 — — Marketable equity securities 2,090 2,090 2,090 — — Available for sale securities 93,017 93,017 13,986 79,031 — Held to maturity securities 21,318 23,111 — 1,085 22,026 Loans receivable, net 1,551,620 1,558,609 — — 1,558,609 Other real estate owned 1,217 1,217 — — 1,217 Accrued interest receivable 6,165 6,165 — 6,165 — FHLB stock 7,475 7,475 — 7,475 — Servicing asset, net of valuation allowance 844 844 — — 844 Derivative asset 1,987 1,987 — 1,987 — Financial Liabilities: Noninterest bearing deposits $ 161,704 $ 161,704 $ — $ 161,704 $ — NOW and money market 502,178 502,178 — 502,178 — Savings 174,319 174,319 — 174,319 — Time deposits 639,530 643,354 — — 643,354 Accrued interest payable 1,895 1,895 — 1,895 — Advances from the FHLB 150,000 149,951 — — 149,951 Subordinated debentures 25,181 25,106 — — 25,106 Servicing liability 68 68 — — 68 Derivative liability 11,603 11,603 — 11,603 — December 31, 2018 Carrying Value Fair Value Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and due from banks $ 75,411 $ 75,411 $ 75,411 $ — $ — Federal funds sold 2,701 2,701 2,701 — — Marketable equity securities 2,009 2,009 2,009 — — Available for sale securities 93,154 93,154 9,798 83,356 — Held to maturity securities 21,421 21,988 — 1,098 20,890 Loans receivable, net 1,586,775 1,584,858 — — 1,584,858 Accrued interest receivable 6,375 6,375 — 6,375 — FHLB stock 8,110 8,110 — 8,110 — Servicing asset, net of valuation allowance 870 870 — — 870 Derivative asset 2,867 2,867 — 2,867 — Financial Liabilities: Noninterest bearing deposits $ 173,198 $ 173,198 $ — $ 173,198 $ — NOW and money market 533,837 533,837 — 533,837 — Savings 180,487 180,487 — 180,487 — Time deposits 614,722 616,973 — — 616,973 Accrued interest payable 1,381 1,381 — 1,381 — Advances from the FHLB 160,000 159,753 — — 159,753 Subordinated debentures 25,155 24,211 — — 24,211 Servicing liability 73 73 — — 73 Derivative liability 2,437 2,437 — 2,437 — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instruments carried at fair value on a recurring basis | The following table details the financial instruments carried at fair value on a recurring basis at June 30, 2019 and December 31, 2018 , and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value. The Company had no transfers into or out of Levels 1, 2 or 3 during the six months ended June 30, 2019 and for the year ended December 31, 2018 . Fair Value (In thousands) Level 1 Level 2 Level 3 June 30, 2019: Marketable equity securities $ 2,090 $ — $ — Available for sale investment securities: U.S. Government and agency obligations 13,986 78,530 — State agency and municipal obligations — 501 — Derivative asset — 1,987 — Derivative liability — 11,603 — December 31, 2018: Marketable equity securities $ 2,009 $ — $ — Available for sale investment securities: U.S. Government and agency obligations 9,798 72,338 — State agency and municipal obligations — 4,007 — Corporate bonds — 7,011 — Derivative asset — 2,867 — Derivative liability — 2,437 — |
Schedule of financial instruments carried at fair value on a nonrecurring basis | The following table details the financial instruments measured at fair value on a nonrecurring basis at June 30, 2019 and December 31, 2018 , and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value: Fair Value (In thousands) Level 1 Level 2 Level 3 June 30, 2019: Impaired loans $ — $ — $ 14,847 Other real estate owned — — 1,217 Servicing asset, net — — 776 December 31, 2018: Impaired loans $ — $ — $ 18,709 Servicing asset, net — — 797 |
Schedule of quantitative inputs and assumptions for Level 3 financial instruments carried at fair value on a nonrecurring basis | The following table presents information about quantitative inputs and assumptions for Level 3 financial instruments carried at fair value on a nonrecurring basis at June 30, 2019 and December 31, 2018 : Fair Value Valuation Methodology Unobservable Input Range (Dollars in thousands) June 30, 2019: Impaired loans $ 7,779 Appraisals Discount to appraised value 0.00 - 28.00% 7,068 Discounted cash flows Discount rate 3.60 - 8.00% $ 14,847 Other real estate owned $ 1,217 Appraisals Discount to appraised value 38.00 % Servicing asset, net $ 776 Discounted cash flows Discount rate 10.00 - 11.50% (1) Prepayment rate 3.00 - 17.15% December 31, 2018: Impaired loans $ 10,188 Appraisals Discount to appraised value 5.00 - 8.00% 8,521 Discounted cash flows Discount rate 3.25 - 8.00% $ 18,709 Servicing asset, net $ 797 Discounted cash flows Discount rate 10.00 - 12.00% (2) Prepayment rate 3.00 - 15.00% (1) Servicing liabilities totaling $68 thousand were valued using a discount rate of 1.9% (2) Servicing liabilities totaling $73 thousand were valued using a discount rate of |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Future Minimum Lease Payments | Future minimum lease payments as of June 30, 2019 are as follows: June 30, 2019 (In thousands) 2019 $ 995 2020 1,842 2021 1,739 2022 1,118 2023 1,134 Thereafter 15,898 Total $ 22,726 A reconciliation of the undiscounted cash flows in the maturity table above and the lease liability recognized in the consolidated balance sheet as of June 30, 2019, is shown below: June 30, 2019 (In thousands) Undiscounted cash flows $ 22,726 Discount effect of cash flows (12,791 ) Lease liability $ 9,935 |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 |
Retained Earnings Adjustments | ||
Right of use asset | $ 9,900 | |
Operating lease liability | $ 9,935 | |
Weighted average discount rate (percent) | 6.00% | 6.00% |
ASU 2016-02 | ||
Retained Earnings Adjustments | ||
ASU 2016-02 transition adjustment, net of tax | $ 481 | |
Right of use asset | 10,600 | |
Operating lease liability | 10,600 | |
ASU 2016-02 | Retained Earnings | ||
Retained Earnings Adjustments | ||
ASU 2016-02 transition adjustment, net of tax | $ 481 |
Investment Securities - Summary
Investment Securities - Summary of amortized cost, gross unrealized gains and losses and fair values of available for sale and held to maturity securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Held to maturity securities: | ||
Amortized cost | $ 21,318 | $ 21,421 |
Gross unrealized gains | 1,799 | 680 |
Gross unrealized losses | (6) | (113) |
Fair value | 23,111 | 21,988 |
Available for sale securities: | ||
Amortized cost | 92,168 | 94,899 |
Gross unrealized gains | 873 | 43 |
Gross unrealized losses | (24) | (1,788) |
Available for sale securities | 93,017 | 93,154 |
U.S. Government and agency obligations | ||
Available for sale securities: | ||
Amortized cost, less than one year | 4,980 | 1,000 |
Gross unrealized gains, less than one year | 3 | 0 |
Gross unrealized losses, less than one year | (4) | (11) |
Fair value, less than one year | 4,979 | 989 |
Amortized cost, due from one through five years | 12,037 | 12,025 |
Gross unrealized gains, due from one through five years | 66 | 0 |
Gross unrealized losses, due from one through five years | (10) | (161) |
Fair value, due from one through five years | 12,093 | 11,864 |
Amortized cost, due from five through ten years | 8,395 | 100 |
Gross unrealized gains, due from five through ten years | 195 | 0 |
Gross unrealized losses, due from five through ten years | 0 | (5) |
Fair value, due from five through ten years | 8,590 | 95 |
Amortized cost, due after ten years | 66,256 | 70,690 |
Gross unrealized gains, due after ten years | 608 | 7 |
Gross unrealized losses, due after ten years | (10) | (1,509) |
Fair value, due after ten years | 66,854 | 69,188 |
Amortized cost | 91,668 | 83,815 |
Gross unrealized gains | 872 | 7 |
Gross unrealized losses | (24) | (1,686) |
Available for sale securities | 92,516 | 82,136 |
State agency and municipal obligations | ||
Held to maturity securities: | ||
Amortized cost, due in less than one year | 3,900 | 3,894 |
Gross unrealized gains, due in less than one year | 0 | 6 |
Gross unrealized losses, due in less than one year | 0 | 0 |
Fair Value, due in less than one year | 3,900 | 3,900 |
Amortized cost, due after ten years | 16,334 | 16,434 |
Gross unrealized gains, due after ten years | 1,792 | 669 |
Gross unrealized losses, due after ten years | 0 | (113) |
Fair Value, due after ten years | 18,126 | 16,990 |
Amortized cost | 20,234 | 20,328 |
Gross unrealized gains | 1,792 | 675 |
Gross unrealized losses | 0 | (113) |
Fair value | 22,026 | 20,890 |
Available for sale securities: | ||
Amortized cost, due from one through five years | 2,234 | |
Gross unrealized gains, due from one through five years | 18 | |
Gross unrealized losses, due from one through five years | 0 | |
Fair value, due from one through five years | 2,252 | |
Amortized cost, due from five through ten years | 500 | 1,261 |
Gross unrealized gains, due from five through ten years | 1 | 18 |
Gross unrealized losses, due from five through ten years | 0 | 0 |
Fair value, due from five through ten years | 501 | 1,279 |
Amortized cost, due after ten years | 528 | |
Gross unrealized gains, due after ten years | 0 | |
Gross unrealized losses, due after ten years | (52) | |
Fair value, due after ten years | 476 | |
Amortized cost | 4,023 | |
Gross unrealized gains | 36 | |
Gross unrealized losses | (52) | |
Available for sale securities | 4,007 | |
Corporate bonds | ||
Held to maturity securities: | ||
Amortized cost, due in less than one year | 1,000 | 1,000 |
Gross unrealized gains, due in less than one year | 0 | 0 |
Gross unrealized losses, due in less than one year | (6) | 0 |
Fair Value, due in less than one year | 994 | 1,000 |
Available for sale securities: | ||
Amortized cost, due from one through five years | 7,061 | |
Gross unrealized gains, due from one through five years | 0 | |
Gross unrealized losses, due from one through five years | (50) | |
Fair value, due from one through five years | 7,011 | |
No contractual maturity | ||
Held to maturity securities: | ||
Amortized cost, no contractual maturity | 84 | 93 |
Gross unrealized gains, no contractual maturity | 7 | 5 |
Gross unrealized losses, no contractual maturity | 0 | 0 |
Fair Value, no contractual maturity | $ 91 | $ 98 |
Investment Securities - Informa
Investment Securities - Information regarding investment securities with unrealized losses, aggregated by investment category and length of time that individual securities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Length of Time in Continuous Unrealized Loss Position | ||
Less than 12 months - Fair Value | $ 994 | $ 15,235 |
Less than 12 months - Unrealized Loss | $ (6) | $ (162) |
Less than 12 months - Percent Decline from Amortized Cost | 0.63% | 1.05% |
12 Months or More - Fair Value | $ 4,291 | $ 78,130 |
12 Months or More - Unrealized Loss | $ (24) | $ (1,739) |
12 Months or More - Percent Decline from Amortized Cost | 0.56% | 2.18% |
Fair Value - Total | $ 5,285 | $ 93,365 |
Unrealized Loss - Total | $ (30) | $ (1,901) |
Percent Decline from Amortized Cost - Total | 0.57% | 2.00% |
U.S. Government and agency obligations | ||
Length of Time in Continuous Unrealized Loss Position | ||
Less than 12 months - Fair Value | $ 0 | $ 4,990 |
Less than 12 months - Unrealized Loss | $ 0 | $ (38) |
Less than 12 months - Percent Decline from Amortized Cost | 0.00% | 0.75% |
12 Months or More - Fair Value | $ 4,291 | $ 72,676 |
12 Months or More - Unrealized Loss | $ (24) | $ (1,648) |
12 Months or More - Percent Decline from Amortized Cost | 0.56% | 2.22% |
Fair Value - Total | $ 4,291 | $ 77,666 |
Unrealized Loss - Total | $ (24) | $ (1,686) |
Percent Decline from Amortized Cost - Total | 0.56% | 2.12% |
State agency and municipal obligations | ||
Length of Time in Continuous Unrealized Loss Position | ||
Less than 12 months - Fair Value | $ 8,212 | |
Less than 12 months - Unrealized Loss | $ (113) | |
Less than 12 months - Percent Decline from Amortized Cost | 1.36% | |
12 Months or More - Fair Value | $ 476 | |
12 Months or More - Unrealized Loss | $ (52) | |
12 Months or More - Percent Decline from Amortized Cost | 9.87% | |
Fair Value - Total | $ 8,688 | |
Unrealized Loss - Total | $ (165) | |
Percent Decline from Amortized Cost - Total | 1.87% | |
Corporate bonds | ||
Length of Time in Continuous Unrealized Loss Position | ||
Less than 12 months - Fair Value | $ 994 | $ 2,033 |
Less than 12 months - Unrealized Loss | $ (6) | $ (11) |
Less than 12 months - Percent Decline from Amortized Cost | 0.63% | 0.51% |
12 Months or More - Fair Value | $ 0 | $ 4,978 |
12 Months or More - Unrealized Loss | $ 0 | $ (39) |
12 Months or More - Percent Decline from Amortized Cost | 0.00% | 0.78% |
Fair Value - Total | $ 994 | $ 7,011 |
Unrealized Loss - Total | $ (6) | $ (50) |
Percent Decline from Amortized Cost - Total | 0.63% | 0.70% |
Investment Securities - Narrati
Investment Securities - Narratives (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)Security | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Security | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)Security | |
Investments, Debt and Equity Securities [Abstract] | |||||
Available for sale debt securities, realized gain | $ 76,000 | $ 0 | $ 76,000 | $ 222,000 | |
Available for sale debt securities, realized loss | 17,000 | 17,000 | 2,000 | ||
Proceeds from sales of securities | 11,000,000 | $ 0 | 11,000,000 | $ 12,100,000 | |
Marketable equity securities, at fair value | 2,090,000 | 2,090,000 | $ 2,009,000 | ||
Marketable equity securities at amortized cost | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | ||
Number of available for sales debt securities in continuous loss position (positions) | Security | 6 | 6 | 25 |
Loans Receivable and Allowanc_3
Loans Receivable and Allowance for Loan Losses - Summary of loan portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure | ||||||
Total loans | $ 1,567,809 | $ 1,604,726 | ||||
Allowance for loan losses | (13,890) | $ (15,430) | (15,462) | $ (19,006) | $ (18,801) | $ (18,904) |
Deferred loan origination fees, net | (2,302) | (2,497) | ||||
Unamortized loan premiums | 3 | 8 | ||||
Loans receivable, net | 1,551,620 | 1,586,775 | ||||
Real estate loan | ||||||
Loans and Leases Receivable Disclosure | ||||||
Total loans | 1,334,148 | 1,345,336 | ||||
Residential | ||||||
Loans and Leases Receivable Disclosure | ||||||
Total loans | 164,066 | 178,079 | ||||
Allowance for loan losses | (923) | (719) | (857) | (750) | (1,695) | (1,721) |
Commercial | ||||||
Loans and Leases Receivable Disclosure | ||||||
Total loans | 1,080,846 | 1,094,066 | ||||
Allowance for loan losses | (9,910) | (11,646) | (11,562) | (14,185) | (12,645) | (12,777) |
Construction | ||||||
Loans and Leases Receivable Disclosure | ||||||
Total loans | 89,236 | 73,191 | ||||
Allowance for loan losses | (259) | (213) | (140) | (481) | (767) | (907) |
Commercial business | ||||||
Loans and Leases Receivable Disclosure | ||||||
Total loans | 233,364 | 258,978 | ||||
Allowance for loan losses | (2,797) | (2,851) | (2,902) | (3,589) | (3,692) | (3,498) |
Consumer | ||||||
Loans and Leases Receivable Disclosure | ||||||
Total loans | 297 | 412 | ||||
Allowance for loan losses | (1) | $ (1) | (1) | $ (1) | $ (2) | $ (1) |
Real estate | Residential | ||||||
Loans and Leases Receivable Disclosure | ||||||
Total loans | 164,066 | 178,079 | ||||
Real estate | Commercial | ||||||
Loans and Leases Receivable Disclosure | ||||||
Total loans | $ 1,080,846 | $ 1,094,066 |
Loans Receivable and Allowanc_4
Loans Receivable and Allowance for Loan Losses - Summary of allowance for loan losses by portfolio segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Allowance for Loan and Lease Losses | ||||
Beginning balance | $ 15,430 | $ 18,801 | $ 15,462 | $ 18,904 |
Charge-offs | (708) | (113) | (946) | (230) |
Recoveries | 9 | 8 | 20 | 9 |
Provisions (Credits) | (841) | 310 | (646) | 323 |
Ending balance | 13,890 | 19,006 | 13,890 | 19,006 |
Residential Real Estate | ||||
Allowance for Loan and Lease Losses | ||||
Beginning balance | 719 | 1,695 | 857 | 1,721 |
Charge-offs | (565) | (56) | (797) | (56) |
Recoveries | 0 | 0 | 0 | 0 |
Provisions (Credits) | 769 | (889) | 863 | (915) |
Ending balance | 923 | 750 | 923 | 750 |
Commercial Real Estate | ||||
Allowance for Loan and Lease Losses | ||||
Beginning balance | 11,646 | 12,645 | 11,562 | 12,777 |
Charge-offs | 0 | 0 | 0 | (18) |
Recoveries | 0 | 0 | 0 | 0 |
Provisions (Credits) | (1,736) | 1,540 | (1,652) | 1,426 |
Ending balance | 9,910 | 14,185 | 9,910 | 14,185 |
Construction | ||||
Allowance for Loan and Lease Losses | ||||
Beginning balance | 213 | 767 | 140 | 907 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provisions (Credits) | 46 | (286) | 119 | (426) |
Ending balance | 259 | 481 | 259 | 481 |
Commercial Business | ||||
Allowance for Loan and Lease Losses | ||||
Beginning balance | 2,851 | 3,692 | 2,902 | 3,498 |
Charge-offs | (130) | 0 | (136) | (96) |
Recoveries | 6 | 4 | 16 | 4 |
Provisions (Credits) | 70 | (107) | 15 | 183 |
Ending balance | 2,797 | 3,589 | 2,797 | 3,589 |
Consumer | ||||
Allowance for Loan and Lease Losses | ||||
Beginning balance | 1 | 2 | 1 | 1 |
Charge-offs | (13) | (57) | (13) | (60) |
Recoveries | 3 | 4 | 4 | 5 |
Provisions (Credits) | 10 | 52 | 9 | 55 |
Ending balance | $ 1 | $ 1 | $ 1 | $ 1 |
Loans Receivable and Allowanc_5
Loans Receivable and Allowance for Loan Losses - Summary by portfolio segment and impairment methodology, of the allowance for loan losses and related portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, Portfolio | $ 15,852 | $ 19,075 | ||||
Loans individually evaluated for impairment, Allowance | 1,005 | 366 | ||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | 1,551,957 | 1,585,651 | ||||
Loans collectively evaluated for impairment, Allowance | 12,885 | 15,096 | ||||
Total Loans | 1,567,809 | 1,604,726 | ||||
Total Allowance | 13,890 | $ 15,430 | 15,462 | $ 19,006 | $ 18,801 | $ 18,904 |
Residential Real Estate | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, Portfolio | 4,202 | 6,534 | ||||
Loans individually evaluated for impairment, Allowance | 107 | 233 | ||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | 159,864 | 171,545 | ||||
Loans collectively evaluated for impairment, Allowance | 816 | 624 | ||||
Total Loans | 164,066 | 178,079 | ||||
Total Allowance | 923 | 719 | 857 | 750 | 1,695 | 1,721 |
Commercial Real Estate | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, Portfolio | 4,986 | 6,383 | ||||
Loans individually evaluated for impairment, Allowance | 97 | 0 | ||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | 1,075,860 | 1,087,683 | ||||
Loans collectively evaluated for impairment, Allowance | 9,813 | 11,562 | ||||
Total Loans | 1,080,846 | 1,094,066 | ||||
Total Allowance | 9,910 | 11,646 | 11,562 | 14,185 | 12,645 | 12,777 |
Construction | ||||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | 89,236 | 73,191 | ||||
Loans collectively evaluated for impairment, Allowance | 259 | 140 | ||||
Total Loans | 89,236 | 73,191 | ||||
Total Allowance | 259 | 213 | 140 | 481 | 767 | 907 |
Commercial business | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, Portfolio | 6,663 | 6,155 | ||||
Loans individually evaluated for impairment, Allowance | 801 | 133 | ||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | 226,701 | 252,823 | ||||
Loans collectively evaluated for impairment, Allowance | 1,996 | 2,769 | ||||
Total Loans | 233,364 | 258,978 | ||||
Total Allowance | 2,797 | 2,851 | 2,902 | 3,589 | 3,692 | 3,498 |
Consumer | ||||||
Loans individually evaluated for impairment: | ||||||
Loans individually evaluated for impairment, Portfolio | 1 | 3 | ||||
Loans individually evaluated for impairment, Allowance | 0 | 0 | ||||
Loans collectively evaluated for impairment: | ||||||
Loans collectively evaluated for impairment, Portfolio | 296 | 409 | ||||
Loans collectively evaluated for impairment, Allowance | 1 | 1 | ||||
Total Loans | 297 | 412 | ||||
Total Allowance | $ 1 | $ 1 | $ 1 | $ 1 | $ 2 | $ 1 |
Loans Receivable and Allowanc_6
Loans Receivable and Allowance for Loan Losses - Summary of credit risk ratings by loan segment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment | ||
Total loans | $ 1,567,809 | $ 1,604,726 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment | ||
Total loans | 1,080,846 | 1,094,066 |
Construction | ||
Financing Receivable, Recorded Investment | ||
Total loans | 89,236 | 73,191 |
Commercial business | ||
Financing Receivable, Recorded Investment | ||
Total loans | 233,364 | 258,978 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment | ||
Total loans | 164,066 | 178,079 |
Consumer | ||
Financing Receivable, Recorded Investment | ||
Total loans | 297 | 412 |
Commercial Credit Quality Indicators | ||
Financing Receivable, Recorded Investment | ||
Total loans | 1,403,446 | 1,426,235 |
Commercial Credit Quality Indicators | Pass | ||
Financing Receivable, Recorded Investment | ||
Total loans | 1,374,093 | 1,395,819 |
Commercial Credit Quality Indicators | Special Mention | ||
Financing Receivable, Recorded Investment | ||
Total loans | 17,704 | 17,878 |
Commercial Credit Quality Indicators | Substandard | ||
Financing Receivable, Recorded Investment | ||
Total loans | 6,520 | 5,108 |
Commercial Credit Quality Indicators | Doubtful | ||
Financing Receivable, Recorded Investment | ||
Total loans | 5,129 | 7,430 |
Commercial Credit Quality Indicators | Loss | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
Commercial Credit Quality Indicators | Commercial Real Estate | ||
Financing Receivable, Recorded Investment | ||
Total loans | 1,080,846 | 1,094,066 |
Commercial Credit Quality Indicators | Commercial Real Estate | Pass | ||
Financing Receivable, Recorded Investment | ||
Total loans | 1,071,360 | 1,084,695 |
Commercial Credit Quality Indicators | Commercial Real Estate | Special Mention | ||
Financing Receivable, Recorded Investment | ||
Total loans | 4,500 | 2,988 |
Commercial Credit Quality Indicators | Commercial Real Estate | Substandard | ||
Financing Receivable, Recorded Investment | ||
Total loans | 2,497 | 2,516 |
Commercial Credit Quality Indicators | Commercial Real Estate | Doubtful | ||
Financing Receivable, Recorded Investment | ||
Total loans | 2,489 | 3,867 |
Commercial Credit Quality Indicators | Commercial Real Estate | Loss | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
Commercial Credit Quality Indicators | Construction | ||
Financing Receivable, Recorded Investment | ||
Total loans | 89,236 | 73,191 |
Commercial Credit Quality Indicators | Construction | Pass | ||
Financing Receivable, Recorded Investment | ||
Total loans | 89,236 | 73,191 |
Commercial Credit Quality Indicators | Construction | Special Mention | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
Commercial Credit Quality Indicators | Construction | Substandard | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
Commercial Credit Quality Indicators | Construction | Doubtful | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
Commercial Credit Quality Indicators | Construction | Loss | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
Commercial Credit Quality Indicators | Commercial business | ||
Financing Receivable, Recorded Investment | ||
Total loans | 233,364 | 258,978 |
Commercial Credit Quality Indicators | Commercial business | Pass | ||
Financing Receivable, Recorded Investment | ||
Total loans | 213,497 | 237,933 |
Commercial Credit Quality Indicators | Commercial business | Special Mention | ||
Financing Receivable, Recorded Investment | ||
Total loans | 13,204 | 14,890 |
Commercial Credit Quality Indicators | Commercial business | Substandard | ||
Financing Receivable, Recorded Investment | ||
Total loans | 4,023 | 2,592 |
Commercial Credit Quality Indicators | Commercial business | Doubtful | ||
Financing Receivable, Recorded Investment | ||
Total loans | 2,640 | 3,563 |
Commercial Credit Quality Indicators | Commercial business | Loss | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
Residential and Consumer Credit Quality Indicators | ||
Financing Receivable, Recorded Investment | ||
Total loans | 164,363 | 178,491 |
Residential and Consumer Credit Quality Indicators | Pass | ||
Financing Receivable, Recorded Investment | ||
Total loans | 160,030 | 171,824 |
Residential and Consumer Credit Quality Indicators | Special Mention | ||
Financing Receivable, Recorded Investment | ||
Total loans | 130 | 130 |
Residential and Consumer Credit Quality Indicators | Substandard | ||
Financing Receivable, Recorded Investment | ||
Total loans | 4,203 | 6,537 |
Residential and Consumer Credit Quality Indicators | Doubtful | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
Residential and Consumer Credit Quality Indicators | Loss | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
Residential and Consumer Credit Quality Indicators | Residential Real Estate | ||
Financing Receivable, Recorded Investment | ||
Total loans | 164,066 | 178,079 |
Residential and Consumer Credit Quality Indicators | Residential Real Estate | Pass | ||
Financing Receivable, Recorded Investment | ||
Total loans | 159,734 | 171,415 |
Residential and Consumer Credit Quality Indicators | Residential Real Estate | Special Mention | ||
Financing Receivable, Recorded Investment | ||
Total loans | 130 | 130 |
Residential and Consumer Credit Quality Indicators | Residential Real Estate | Substandard | ||
Financing Receivable, Recorded Investment | ||
Total loans | 4,202 | 6,534 |
Residential and Consumer Credit Quality Indicators | Residential Real Estate | Doubtful | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
Residential and Consumer Credit Quality Indicators | Residential Real Estate | Loss | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
Residential and Consumer Credit Quality Indicators | Consumer | ||
Financing Receivable, Recorded Investment | ||
Total loans | 297 | 412 |
Residential and Consumer Credit Quality Indicators | Consumer | Pass | ||
Financing Receivable, Recorded Investment | ||
Total loans | 296 | 409 |
Residential and Consumer Credit Quality Indicators | Consumer | Special Mention | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
Residential and Consumer Credit Quality Indicators | Consumer | Substandard | ||
Financing Receivable, Recorded Investment | ||
Total loans | 1 | 3 |
Residential and Consumer Credit Quality Indicators | Consumer | Doubtful | ||
Financing Receivable, Recorded Investment | ||
Total loans | 0 | 0 |
Residential and Consumer Credit Quality Indicators | Consumer | Loss | ||
Financing Receivable, Recorded Investment | ||
Total loans | $ 0 | $ 0 |
Loans Receivable and Allowanc_7
Loans Receivable and Allowance for Loan Losses - Summary of loan portfolio delinquencies by portfolio segment and amount (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | $ 14,001 | $ 12,461 |
Current | 1,553,808 | 1,592,265 |
Total Loans | 1,567,809 | 1,604,726 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 2,597 | 1,662 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 3,712 | 134 |
90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 7,692 | 10,665 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 1,783 | 3,197 |
Current | 162,283 | 174,882 |
Total Loans | 164,066 | 178,079 |
Residential Real Estate | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 1,389 | 994 |
Residential Real Estate | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 0 | 0 |
Residential Real Estate | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 394 | 2,203 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 7,073 | 5,187 |
Current | 1,073,773 | 1,088,879 |
Total Loans | 1,080,846 | 1,094,066 |
Commercial Real Estate | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 551 | 668 |
Commercial Real Estate | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 3,439 | 133 |
Commercial Real Estate | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 3,083 | 4,386 |
Construction | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 0 | 0 |
Current | 89,236 | 73,191 |
Total Loans | 89,236 | 73,191 |
Construction | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 0 | 0 |
Construction | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 0 | 0 |
Construction | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 0 | 0 |
Commercial business | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 5,145 | 4,077 |
Current | 228,219 | 254,901 |
Total Loans | 233,364 | 258,978 |
Commercial business | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 657 | 0 |
Commercial business | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 273 | 1 |
Commercial business | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 4,215 | 4,076 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 0 | 0 |
Current | 297 | 412 |
Total Loans | 297 | 412 |
Consumer | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 0 | 0 |
Consumer | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 0 | 0 |
Consumer | 90 Days or Greater Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | $ 0 | $ 0 |
Loans Receivable and Allowanc_8
Loans Receivable and Allowance for Loan Losses - Summary of nonaccrual loans by portfolio segment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due | ||
Total nonaccrual loans | $ 11,688 | $ 14,082 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total nonaccrual loans | 1,716 | 3,812 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total nonaccrual loans | 4,535 | 5,950 |
Commercial business | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total nonaccrual loans | $ 5,437 | $ 4,320 |
Loans Receivable and Allowanc_9
Loans Receivable and Allowance for Loan Losses - Summary of impaired loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Impaired loans without a valuation allowance: | ||
Carrying Amount | $ 8,451 | $ 16,118 |
Unpaid Principal Balance | 9,071 | 22,858 |
Impaired loans with a valuation allowance: | ||
Carrying Amount | 7,401 | 2,957 |
Unpaid Principal Balance | 13,677 | 2,999 |
Associated Allowance | 1,005 | 366 |
Total impaired loans | ||
Carrying Amount | 15,852 | 19,075 |
Unpaid Principal Balance | 22,748 | 25,857 |
Associated Allowance | 1,005 | 366 |
Residential Real Estate | ||
Impaired loans without a valuation allowance: | ||
Carrying Amount | 4,094 | 4,520 |
Unpaid Principal Balance | 4,192 | 4,613 |
Impaired loans with a valuation allowance: | ||
Carrying Amount | 108 | 2,014 |
Unpaid Principal Balance | 108 | 2,054 |
Associated Allowance | 107 | 233 |
Total impaired loans | ||
Associated Allowance | 107 | 233 |
Commercial Real Estate | ||
Impaired loans without a valuation allowance: | ||
Carrying Amount | 2,376 | 6,383 |
Unpaid Principal Balance | 2,615 | 12,191 |
Impaired loans with a valuation allowance: | ||
Carrying Amount | 2,610 | 0 |
Unpaid Principal Balance | 8,236 | 0 |
Associated Allowance | 97 | 0 |
Total impaired loans | ||
Associated Allowance | 97 | 0 |
Commercial business | ||
Impaired loans without a valuation allowance: | ||
Carrying Amount | 1,980 | 5,212 |
Unpaid Principal Balance | 2,263 | 6,051 |
Impaired loans with a valuation allowance: | ||
Carrying Amount | 4,683 | 943 |
Unpaid Principal Balance | 5,333 | 945 |
Associated Allowance | 801 | 133 |
Total impaired loans | ||
Associated Allowance | 801 | 133 |
Consumer | ||
Impaired loans without a valuation allowance: | ||
Carrying Amount | 1 | 3 |
Unpaid Principal Balance | $ 1 | $ 3 |
Loans Receivable and Allowan_10
Loans Receivable and Allowance for Loan Losses - Summary of average recorded investment balance of impaired loans and interest income recognized on impaired loans by portfolio segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Impaired loans without a valuation allowance: | ||||
Average Carrying Amount | $ 8,642 | $ 18,227 | $ 8,728 | $ 18,317 |
Interest Income Recognized | 83 | 109 | 162 | 311 |
Impaired loans with a valuation allowance: | ||||
Average Carrying Amount | 7,487 | 18,390 | 7,972 | 17,517 |
Interest Income Recognized | 9 | 3 | 46 | 78 |
Total impaired loans | ||||
Average Carrying Amount | 16,129 | 36,617 | 16,700 | 35,834 |
Interest Income Recognized | 92 | 112 | 208 | 389 |
Residential Real Estate | ||||
Impaired loans without a valuation allowance: | ||||
Average Carrying Amount | 4,112 | 7,334 | 4,129 | 7,347 |
Interest Income Recognized | 31 | 29 | 60 | 77 |
Impaired loans with a valuation allowance: | ||||
Average Carrying Amount | 108 | 0 | 108 | 0 |
Interest Income Recognized | 0 | 0 | 0 | 0 |
Commercial Real Estate | ||||
Impaired loans without a valuation allowance: | ||||
Average Carrying Amount | 2,411 | 8,827 | 2,440 | 8,878 |
Interest Income Recognized | 4 | 4 | 9 | 80 |
Impaired loans with a valuation allowance: | ||||
Average Carrying Amount | 3,301 | 15,168 | 3,593 | 15,170 |
Interest Income Recognized | 1 | 0 | 2 | 53 |
Commercial business | ||||
Impaired loans without a valuation allowance: | ||||
Average Carrying Amount | 2,117 | 2,060 | 2,157 | 2,086 |
Interest Income Recognized | 48 | 76 | 93 | 154 |
Impaired loans with a valuation allowance: | ||||
Average Carrying Amount | 4,078 | 3,222 | 4,271 | 2,347 |
Interest Income Recognized | 8 | 3 | 44 | 25 |
Consumer | ||||
Impaired loans without a valuation allowance: | ||||
Average Carrying Amount | 2 | 6 | 2 | 6 |
Interest Income Recognized | $ 0 | $ 0 | $ 0 | $ 0 |
Loans Receivable and Allowan_11
Loans Receivable and Allowance for Loan Losses - Summary of loans whose terms were modified as TDRs (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)Loan | Jun. 30, 2018USD ($)Loan | Jun. 30, 2019USD ($)Loan | Jun. 30, 2018USD ($)Loan | |
Financing Receivable, Modifications | ||||
Number of TDR loans modified | Loan | 3 | 0 | 3 | 3 |
Outstanding recorded investment - pre-modification | $ 499 | $ 0 | $ 499 | $ 2,863 |
Outstanding recorded investment - post-modification | $ 499 | $ 0 | $ 499 | $ 2,851 |
Residential Real Estate | ||||
Financing Receivable, Modifications | ||||
Number of TDR loans modified | Loan | 1 | 0 | 1 | 2 |
Outstanding recorded investment - pre-modification | $ 34 | $ 0 | $ 34 | $ 2,826 |
Outstanding recorded investment - post-modification | $ 34 | $ 0 | $ 34 | $ 2,822 |
Commercial business | ||||
Financing Receivable, Modifications | ||||
Number of TDR loans modified | Loan | 2 | 0 | 2 | 1 |
Outstanding recorded investment - pre-modification | $ 465 | $ 0 | $ 465 | $ 37 |
Outstanding recorded investment - post-modification | $ 465 | $ 0 | $ 465 | $ 29 |
Loans Receivable and Allowan_12
Loans Receivable and Allowance for Loan Losses - Summary of loans were modified as TDR (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable, Modifications | ||||
Outstanding recorded investment - post-modification | $ 499 | $ 0 | $ 499 | $ 2,851 |
Payment concession | ||||
Financing Receivable, Modifications | ||||
Outstanding recorded investment - post-modification | 0 | 0 | 0 | 2,101 |
Maturity concession | ||||
Financing Receivable, Modifications | ||||
Outstanding recorded investment - post-modification | 125 | 0 | 125 | 0 |
Maturity and payment concession | ||||
Financing Receivable, Modifications | ||||
Outstanding recorded investment - post-modification | 0 | 0 | 0 | 750 |
Rate and payment concession | ||||
Financing Receivable, Modifications | ||||
Outstanding recorded investment - post-modification | $ 374 | $ 0 | $ 374 | $ 0 |
Loans Receivable and Allowan_13
Loans Receivable and Allowance for Loan Losses - Narratives (Details) | 6 Months Ended | ||
Jun. 30, 2019USD ($)Loan | Jun. 30, 2018USD ($)Loan | Dec. 31, 2018USD ($)Loan | |
Loans and Leases Receivable Disclosure | |||
Percentage of market value of the collateral | 80.00% | ||
Private mortgage percentage of appraised value property | 80.00% | ||
Maximum percent of the loan in comparison with original appraised value of the property | 80.00% | ||
Loans delinquent greater than 90 days | $ 0 | $ 0 | |
Non-accrual loans with no allowance for loans losses | 4,400,000 | 11,500,000 | |
Income contractually due but not recognized on originated nonaccrual loans | 600,000 | $ 400,000 | |
Actual interest income recognized | 43,000 | $ 71,000 | |
Recorded investment in TDR | $ 5,000,000 | $ 7,200,000 | |
Number of nonaccrual loans identified as TDRs | Loan | 3 | 6 | |
TDR on non accrual status | $ 1,700,000 | $ 3,600,000 | |
Number of loans re-defaulted | Loan | 2 | 1 | |
Total recorded investment | $ 1,300,000 | $ 2,100,000 | |
Real estate | Residential mortgage | |||
Loans and Leases Receivable Disclosure | |||
Private mortgage percentage of appraised value property | 80.00% | ||
Real estate | Home equity | |||
Loans and Leases Receivable Disclosure | |||
Private mortgage percentage of appraised value property | 80.00% |
Shareholders' Equity - Common S
Shareholders' Equity - Common Stock (Details) - shares | Jun. 30, 2019 | Dec. 31, 2018 |
Stockholders' Equity Note [Abstract] | ||
Common stock, shares authorized (shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (shares) | 7,841,103 | 7,842,271 |
Common stock, shares outstanding (shares) | 7,841,103 | 7,842,271 |
Shareholders' Equity - Warrants
Shareholders' Equity - Warrants (Details) - Quinnipiac Bank And Trust Company | Oct. 01, 2014$ / sharesshares |
Stockholders Equity Note | |
Number of warrants issued (shares) | 68,600 |
Number of common stock shares purchased under each warrant | 0.56 |
Exercise price of warrant (usd per share) | $ / shares | $ 17.86 |
Shareholders' Equity - Issuer P
Shareholders' Equity - Issuer Purchases of Equity Securities (Details) - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 19, 2018 | |
Stockholders Equity Note | ||||
Authorized shares for repurchase (shares) | 400,000 | |||
Shares repurchased (shares) | 34,168 | 0 | ||
Common Stock | ||||
Stockholders Equity Note | ||||
Shares repurchased (shares) | 34,168 | 34,168 | ||
Weighted average share repurchased (usd per share) | $ 28.87 |
Comprehensive Income - Summary
Comprehensive Income - Summary of changes in accumulated other comprehensive income (loss) by component, net of tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income Loss | ||||
Beginning balance | $ 176,841 | $ 165,947 | $ 174,196 | $ 161,027 |
Other comprehensive (loss) income before reclassifications, net of tax | (3,709) | (610) | (5,828) | (240) |
Amounts reclassified from accumulated other comprehensive income, net of tax | (60) | (60) | (175) | |
Total other comprehensive loss, net of tax | (3,769) | (610) | (5,888) | (415) |
Ending balance | 176,940 | 169,573 | 176,940 | 169,573 |
Accumulated Other Comprehensive (Loss) Income | ||||
Accumulated Other Comprehensive Income Loss | ||||
Beginning balance | (3,156) | 1,889 | (1,037) | 1,694 |
Total other comprehensive loss, net of tax | (3,769) | (610) | (5,888) | (415) |
Ending balance | (6,925) | 1,279 | (6,925) | 1,279 |
Net Unrealized Gain (Loss) on Available for Sale Securities | ||||
Accumulated Other Comprehensive Income Loss | ||||
Beginning balance | (281) | (1,302) | (1,379) | 85 |
Other comprehensive (loss) income before reclassifications, net of tax | 1,011 | (462) | 2,109 | (1,674) |
Amounts reclassified from accumulated other comprehensive income, net of tax | (60) | (60) | (175) | |
Total other comprehensive loss, net of tax | 951 | (462) | 2,049 | (1,849) |
Ending balance | 670 | (1,764) | 670 | (1,764) |
Net Unrealized Gain (Loss) on Interest Rate Swaps | ||||
Accumulated Other Comprehensive Income Loss | ||||
Beginning balance | (2,875) | 3,191 | 342 | 1,609 |
Other comprehensive (loss) income before reclassifications, net of tax | (4,720) | (148) | (7,937) | 1,434 |
Amounts reclassified from accumulated other comprehensive income, net of tax | 0 | 0 | 0 | |
Total other comprehensive loss, net of tax | (4,720) | (148) | (7,937) | 1,434 |
Ending balance | $ (7,595) | $ 3,043 | $ (7,595) | $ 3,043 |
Comprehensive Income - Summar_2
Comprehensive Income - Summary of reclassified from accumulated other comprehensive income or loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Available for sale securities: | ||||
Net gain on sale of available for sale securities | $ 951 | $ (462) | $ 2,049 | $ (1,849) |
Tax expense | (1,441) | (1,226) | (2,772) | (2,448) |
Net income | 5,576 | 4,715 | 10,656 | 9,315 |
Net Unrealized Gain (Loss) on Available for Sale Securities | Amount Reclassified from Accumulated Other Comprehensive Income | ||||
Available for sale securities: | ||||
Net gain on sale of available for sale securities | 76 | 0 | 76 | 222 |
Tax expense | (16) | 0 | (16) | (47) |
Net income | $ 60 | $ 0 | $ 60 | $ 175 |
Earnings per Share ("EPS") - Re
Earnings per Share ("EPS") - Reconciliation of earnings available to common stockholders and basic weighted-average common shares outstanding to diluted weighted average common shares outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 5,576 | $ 4,715 | $ 10,656 | $ 9,315 |
Dividends to participating securities | (13) | (13) | (23) | (26) |
Undistributed earnings allocated to participating securities | (56) | (54) | (99) | (101) |
Net income for earnings per share calculation | $ 5,507 | $ 4,648 | $ 10,534 | $ 9,188 |
Weighted average shares outstanding, basic (in shares) | 7,773,466 | 7,722,892 | 7,766,999 | 7,699,977 |
Effect of dilutive equity-based awards (in shares) | 18,000 | 39,000 | 25,000 | 47,000 |
Weighted average shares outstanding, diluted (in shares) | 7,790,760 | 7,761,560 | 7,791,975 | 7,747,068 |
Net earnings per common share: | ||||
Basic earnings per common share (in dollars per share) | $ 0.71 | $ 0.60 | $ 1.36 | $ 1.19 |
Diluted earnings per common share (in dollars per share) | $ 0.71 | $ 0.60 | $ 1.35 | $ 1.19 |
Regulatory Matters - Capital am
Regulatory Matters - Capital amounts and ratios for Bank (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Actual Capital, Amount | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, Actual Capital, Amount | $ 200,228 | $ 191,128 |
Total Capital to Risk-Weighted Assets, Actual Capital, Amount | 214,118 | 206,593 |
Tier I Capital to Risk-Weighted Assets, Actual Capital, Amount | 200,228 | 191,128 |
Tier I Capital to Average Assets, Actual Capital, Amount | $ 200,228 | $ 191,128 |
Actual Capital, Ratio | ||
Common Equity Tier 1 capital requirement | 12.40% | 11.56% |
Total Capital to Risk-Weighted Assets, Actual Capital, Ratio | 13.26% | 12.50% |
Tier I Capital to Risk-Weighted Assets, Actual Capital, Ratio | 12.40% | 11.56% |
Tier I Capital to Average Assets, Actual Capital, Ratio | 10.75% | 10.14% |
Minimum Regulatory Capital Required for Capital Adequacy Plus Capital Conservation Buffer, Amount | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Amount | $ 113,041 | $ 105,392 |
Total Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Amount | 169,562 | 163,255 |
Tier I Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Amount | 137,265 | 130,190 |
Tier I Capital to Average Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Amount | $ 74,533 | $ 75,432 |
Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio | 7.00% | 6.38% |
Total Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio | 10.50% | 9.88% |
Tier I Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio | 8.50% | 7.88% |
Tier I Capital to Average Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio | 4.00% | 4.00% |
Minimum Regulatory Capital To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 104,967 | $ 107,459 |
Total Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 161,488 | 165,321 |
Tier I Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | 129,190 | 132,257 |
Tier I Capital to Average Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 93,166 | $ 94,290 |
Minimum Regulatory Capital To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Total Capital to Risk-Weighted Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Tier I Capital to Risk-Weighted Assets To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% |
Tier I Capital to Average Assets, To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
Bankwell Financial Group Inc. | ||
Actual Capital, Amount | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, Actual Capital, Amount | $ 181,078 | $ 172,415 |
Total Capital to Risk-Weighted Assets, Actual Capital, Amount | 220,149 | 213,035 |
Tier I Capital to Risk-Weighted Assets, Actual Capital, Amount | 181,078 | 172,415 |
Tier I Capital to Average Assets, Actual Capital, Amount | $ 181,078 | $ 172,415 |
Actual Capital, Ratio | ||
Common Equity Tier 1 capital requirement | 11.19% | 10.41% |
Total Capital to Risk-Weighted Assets, Actual Capital, Ratio | 13.61% | 12.86% |
Tier I Capital to Risk-Weighted Assets, Actual Capital, Ratio | 11.19% | 10.41% |
Tier I Capital to Average Assets, Actual Capital, Ratio | 9.70% | 9.13% |
Minimum Regulatory Capital Required for Capital Adequacy Plus Capital Conservation Buffer, Amount | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Amount | $ 113,247 | $ 105,575 |
Total Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Amount | 169,871 | 163,537 |
Tier I Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Amount | 137,514 | 130,416 |
Tier I Capital to Average Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Amount | $ 74,656 | $ 75,567 |
Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio | 7.00% | 6.38% |
Total Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio | 10.50% | 9.88% |
Tier I Capital to Risk-Weighted Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio | 8.50% | 7.88% |
Tier I Capital to Average Assets, Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer, Ratio | 4.00% | 4.00% |
Regulatory Matters - Narratives
Regulatory Matters - Narratives (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Tier 1 capital to risk-weighted assets requirement (percent) | 12.40% | 11.56% | |
Total capital to risk-weighted assets requirement (percent) | 8.00% | 8.00% | |
Percentage of higher risk weight (percent) | 150.00% | ||
Risk weight of marketable equity securities (percent) | 300.00% | ||
Required minimum conservation buffer (percent) | 2.50% | 1.875% | |
Federal Reserve Bank | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Minimum reserve balance | $ 11.4 | $ 16.8 | |
Atlantic Community Bankers Bank | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Minimum reserve balance | $ 4.5 | $ 4.5 | |
Minimum | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Common equity Tier 1 capital requirement of risk-weighted assets (percent) | 4.50% | ||
Leverage ratio (percent) | 4.00% | ||
Tier 1 capital to risk-weighted assets requirement (percent) | 4.00% | ||
Percentage of capital ratio | 1.00% | ||
Regulatory risk based capital conservation buffer (percent) | 2.50% | ||
Maximum | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Tier 1 capital to risk-weighted assets requirement (percent) | 6.00% | ||
Percentage of capital ratio | 2.00% |
Stock-Based Compensation - Outs
Stock-Based Compensation - Outstanding share options (Details) - Employee Stock Options - $ / shares | 6 Months Ended |
Jun. 30, 2019 | |
Number of Shares | |
Options outstanding at beginning of period (shares) | 19,030 |
Exercised (shares) | (2,350) |
Options outstanding at end of period (shares) | 16,680 |
Options exercisable at end of period (shares) | 16,680 |
Weighted Average Exercise Price | |
Options outstanding at beginning of period (usd per share) | $ 15.91 |
Exercised (usd per share) | 13.14 |
Options outstanding at end of period (usd per share) | 16.30 |
Options exercisable at end of period (usd per share) | $ 16.30 |
Stock-Based Compensation - Acti
Stock-Based Compensation - Activity for restricted stock (Details) | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Number of Shares | |
Unvested at beginning of period (shares) | shares | 77,624 |
Granted (shares) | shares | 34,450 |
Vested (shares) | shares | (13,676) |
Forfeited (shares) | shares | (3,800) |
Unvested at end of period (shares) | shares | 94,598 |
Weighted Average Grant Date Fair Value | |
Unvested at beginning of period (usd per share) | $ / shares | $ 30.78 |
Granted (usd per share) | $ / shares | 29.69 |
Vested (usd per share) | $ / shares | 31.23 |
Forfeited (usd per share) | $ / shares | 22.82 |
Unvested at end of period (usd per share) | $ / shares | $ 30.63 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narratives (Details) | Mar. 18, 2019shares | Feb. 20, 2018shares | Jun. 30, 2019USD ($)Plan$ / sharesshares | Jun. 30, 2018USD ($) | Dec. 31, 2018shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unvested at beginning of period (shares) | 94,598 | 77,624 | |||
Share based payment award shares issued (shares) | 34,450 | ||||
Employee Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total intrinsic value of share options exercised | $ | $ 40,300 | ||||
Exercise price of exercisable shares (usd per share) | 16,680 | ||||
Exercise price lower range limit (usd per share) | $ / shares | $ 11 | ||||
Exercise price upper range limit (usd per share) | $ / shares | $ 17.86 | ||||
Exercisable shares (term) | 3 years | ||||
Intrinsic value of exercisable shares | $ | $ 200,000 | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate intrinsic value of awards other than options | $ | 400,000 | ||||
Share based compensation expenses | $ | 500,000 | $ 600,000 | |||
Unrecognized stock compensation expense for restricted stock | $ | $ 2,300,000 | ||||
Weighted average period for recognition of compensation expense for restricted stock | 1 year 8 months 18 days | ||||
Restricted Stock | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share based payment award, vesting period | 1 year | ||||
Percentage of grant as share quantity for which performance metric is met | 0.00% | ||||
Restricted Stock | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share based payment award, vesting period | 5 years | ||||
Percentage of grant as share quantity for which performance metric is met | 200.00% | ||||
Performance based restricted stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unvested at beginning of period (shares) | 11,250 | ||||
Share based payment award shares issued (shares) | 7,500 | 7,500 | |||
BNC Financial Group Inc Stock Option 2012 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of equity award plans | Plan | 3 | ||||
Number of common stock reserved for issuance (shares) | 593,597 | ||||
BNC Financial Group Inc Stock Option 2012 Plan | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share based payment award, vesting period | 3 years | ||||
Share based payment award shares issued (shares) | 11,250 |
Derivative Instruments - Narrat
Derivative Instruments - Narratives (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019USD ($)instrument | Dec. 31, 2018USD ($) | |
Derivatives | ||
Notional amount of interest rate swap | $ 240,000 | |
Rolling period of federal home loan bank advances converted to fixed rates | 90 days | |
Accrued interest excluded from derivative fair value | $ 200 | $ 200 |
Accrued interest included in derivative fair value | 9,500 | $ 700 |
Amount of cashflow hedge gain expected to be reclassified to interest expense in the next 12 months | $ 100 | |
Interest rate swap | ||
Derivatives | ||
Number of derivatives instruments held (instruments) | instrument | 6 | |
Notional amount of interest rate swap | $ 25,000 | |
Derivatives not designated as hedging instruments | ||
Derivatives | ||
Notional amount of interest rate swap | $ 40,000 | |
Derivatives not designated as hedging instruments | Interest rate swap | ||
Derivatives | ||
Number of derivatives instruments held (instruments) | instrument | 2 |
Derivative Instruments - Inform
Derivative Instruments - Information about derivative instruments (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Derivatives | ||
Notional Amount | $ 240,000 | |
Fair Value Asset (Liability), Net | (9,616) | |
Interest rate swap | ||
Derivatives | ||
Notional Amount | 25,000 | |
Derivatives designated as hedging instruments: | Cash Flow Hedging | ||
Derivatives | ||
Notional Amount | 200,000 | $ 225,000 |
Fair Value Asset (Liability), Net | (9,616) | 430 |
Derivatives designated as hedging instruments: | Cash Flow Hedging | Interest rate swap 1.83% | ||
Derivatives | ||
Notional Amount | $ 25,000 | $ 25,000 |
Original Maturity | 5 years | 5 years |
Received | 3-month USD LIBOR | 3-month USD LIBOR |
Paid (Interest Rate) | 1.83% | 1.83% |
Derivative asset fair value | $ 41 | $ 220 |
Derivatives designated as hedging instruments: | Cash Flow Hedging | Interest rate swap 1.48% | ||
Derivatives | ||
Notional Amount | $ 25,000 | $ 25,000 |
Original Maturity | 5 years | 5 years |
Received | 3-month USD LIBOR | 3-month USD LIBOR |
Paid (Interest Rate) | 1.48% | 1.48% |
Derivative asset fair value | $ 137 | $ 475 |
Derivatives designated as hedging instruments: | Cash Flow Hedging | Interest rate swap 1.22% | ||
Derivatives | ||
Notional Amount | $ 25,000 | $ 25,000 |
Original Maturity | 5 years | 5 years |
Received | 3-month USD LIBOR | 3-month USD LIBOR |
Paid (Interest Rate) | 1.22% | 1.22% |
Derivative asset fair value | $ 272 | $ 828 |
Derivatives designated as hedging instruments: | Cash Flow Hedging | Interest rate swap 2.04% | ||
Derivatives | ||
Notional Amount | $ 25,000 | $ 25,000 |
Original Maturity | 7 years | 7 years |
Received | 3-month USD LIBOR | 3-month USD LIBOR |
Paid (Interest Rate) | 2.04% | 2.04% |
Derivative asset fair value | $ 675 | |
Derivative liability fair value | $ (367) | |
Derivatives designated as hedging instruments: | Cash Flow Hedging | Interest rate swap 2.04% (2) | ||
Derivatives | ||
Notional Amount | $ 25,000 | $ 25,000 |
Original Maturity | 7 years | 7 years |
Received | 3-month USD LIBOR | 3-month USD LIBOR |
Paid (Interest Rate) | 2.04% | 2.04% |
Derivative asset fair value | $ 668 | |
Derivative liability fair value | $ (373) | |
Derivatives designated as hedging instruments: | Cash Flow Hedging | Forward-starting interest rate swap 3.01% | ||
Derivatives | ||
Notional Amount | $ 25,000 | $ 25,000 |
Original Maturity | 15 years | 15 years |
Received | 3-month USD LIBOR | 3-month USD LIBOR |
Paid (Interest Rate) | 3.01% | 3.01% |
Derivative liability fair value | $ (3,078) | $ (807) |
Derivatives designated as hedging instruments: | Cash Flow Hedging | Forward-starting interest rate swap 3.03% | ||
Derivatives | ||
Notional Amount | $ 25,000 | $ 25,000 |
Original Maturity | 15 years | 15 years |
Received | 3-month USD LIBOR | 3-month USD LIBOR |
Paid (Interest Rate) | 3.03% | 3.03% |
Derivative liability fair value | $ (3,160) | $ (819) |
Derivatives designated as hedging instruments: | Cash Flow Hedging | Forward-starting interest rate swap 3.05% | ||
Derivatives | ||
Notional Amount | $ 25,000 | $ 25,000 |
Original Maturity | 15 years | 15 years |
Received | 3-month USD LIBOR | 3-month USD LIBOR |
Paid (Interest Rate) | 3.05% | 3.05% |
Derivative liability fair value | $ (3,088) | $ (811) |
Derivatives designated as hedging instruments: | Cash Flow Hedging | Interest rate swap | ||
Derivatives | ||
Notional Amount | $ 25,000 | |
Original Maturity | 4 years 8 months 12 days | |
Received | 3-month USD LIBOR | |
Paid (Interest Rate) | 1.62% | |
Derivative asset fair value | $ 1 | |
Derivatives not designated as hedging instruments | ||
Derivatives | ||
Notional Amount | 40,000 | |
Fair Value Asset (Liability), Net | 0 | |
Derivatives not designated as hedging instruments | Interest rate swap 5.00% | ||
Derivatives | ||
Notional Amount | $ 20,000 | |
Original Maturity | 20 years | |
Received | 1-month USD LIBOR | |
Paid (Interest Rate) | 5.00% | |
Derivative liability fair value | $ (1,537) | |
Derivatives not designated as hedging instruments | Interest rate swap 5.00% (2) | ||
Derivatives | ||
Notional Amount | $ 20,000 | |
Original Maturity | 20 years | |
Received | 1-month USD LIBOR | |
Paid (Interest Rate) | 5.00% | |
Derivative asset fair value | $ 1,537 |
Derivative Instruments - Forwar
Derivative Instruments - Forward starting interest rate swap transactions (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Derivatives | |
Notional Amount | $ 240,000 |
Interest rate swap | |
Derivatives | |
Notional Amount | 25,000 |
Cash Flow Hedging | FHLB 90-day advance | Interest rate swap | |
Derivatives | |
Notional Amount | 150,000 |
Cash Flow Hedging | FHLB 90-day advance | Interest rate swap | January 2, 2015 | |
Derivatives | |
Notional Amount | $ 25,000 |
Duration of Borrowing | 5 years |
Cash Flow Hedging | FHLB 90-day advance | Interest rate swap | August 26, 2015 | |
Derivatives | |
Notional Amount | $ 25,000 |
Duration of Borrowing | 5 years |
Cash Flow Hedging | FHLB 90-day advance | Interest rate swap | July 1, 2016 | |
Derivatives | |
Notional Amount | $ 25,000 |
Duration of Borrowing | 5 years |
Cash Flow Hedging | FHLB 90-day advance | Interest rate swap | August 25, 2017 | |
Derivatives | |
Notional Amount | $ 25,000 |
Duration of Borrowing | 7 years |
Cash Flow Hedging | FHLB 90-day advance | Interest rate swap | August 25, 2017 | |
Derivatives | |
Notional Amount | $ 25,000 |
Duration of Borrowing | 7 years |
Cash Flow Hedging | FHLB 90-day advance | Interest rate swap | January 2, 2019 | |
Derivatives | |
Notional Amount | $ 25,000 |
Duration of Borrowing | 15 years |
Derivative Instruments - Change
Derivative Instruments - Changes in consolidated statements of comprehensive income related to interest rate derivatives (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest rate swap on FHLB advances and brokered deposits: | ||||
Unrealized (losses) gains recognized in accumulated other comprehensive income | $ (5,974) | $ (187) | $ (10,046) | $ 1,815 |
Income tax benefit (expense) on items recognized in accumulated other comprehensive income | 1,254 | 39 | 2,109 | (381) |
Other comprehensive (loss) income | (4,720) | (148) | (7,937) | 1,434 |
Amount recognized in interest expense on hedged FHLB advances and brokered deposits | $ 734 | $ 646 | $ 1,460 | $ 1,285 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Carrying values and fair values of financial instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financial Assets: | ||
Federal funds sold | $ 3,237 | $ 2,701 |
Marketable equity securities | 2,090 | 2,009 |
Available for sale securities | 93,017 | 93,154 |
Held to maturity securities | 21,318 | 21,421 |
Other real estate owned | 1,217 | 0 |
Level 1 | ||
Financial Assets: | ||
Cash and due from banks | 75,647 | 75,411 |
Federal funds sold | 3,237 | 2,701 |
Marketable equity securities | 2,090 | 2,009 |
Available for sale securities | 13,986 | 9,798 |
Held to maturity securities | 0 | 0 |
Loans receivable, net | 0 | 0 |
Other real estate owned | 0 | |
Accrued interest receivable | 0 | 0 |
FHLB stock | 0 | 0 |
Servicing asset, net of valuation allowance | 0 | 0 |
Derivative asset | 0 | 0 |
Financial Liabilities: | ||
Noninterest bearing deposits | 0 | 0 |
NOW and money market | 0 | 0 |
Savings | 0 | 0 |
Time deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
Advances from the FHLB | 0 | 0 |
Subordinated debentures | 0 | 0 |
Servicing liability | 0 | 0 |
Derivative liability | 0 | 0 |
Level 2 | ||
Financial Assets: | ||
Cash and due from banks | 0 | 0 |
Federal funds sold | 0 | 0 |
Marketable equity securities | 0 | 0 |
Available for sale securities | 79,031 | 83,356 |
Held to maturity securities | 1,085 | 1,098 |
Loans receivable, net | 0 | 0 |
Other real estate owned | 0 | |
Accrued interest receivable | 6,165 | 6,375 |
FHLB stock | 7,475 | 8,110 |
Servicing asset, net of valuation allowance | 0 | 0 |
Derivative asset | 1,987 | 2,867 |
Financial Liabilities: | ||
Noninterest bearing deposits | 161,704 | 173,198 |
NOW and money market | 502,178 | 533,837 |
Savings | 174,319 | 180,487 |
Time deposits | 0 | 0 |
Accrued interest payable | 1,895 | 1,381 |
Advances from the FHLB | 0 | 0 |
Subordinated debentures | 0 | 0 |
Servicing liability | 0 | 0 |
Derivative liability | 11,603 | 2,437 |
Level 3 | ||
Financial Assets: | ||
Cash and due from banks | 0 | 0 |
Federal funds sold | 0 | 0 |
Marketable equity securities | 0 | 0 |
Available for sale securities | 0 | 0 |
Held to maturity securities | 22,026 | 20,890 |
Loans receivable, net | 1,558,609 | 1,584,858 |
Other real estate owned | 1,217 | |
Accrued interest receivable | 0 | 0 |
FHLB stock | 0 | 0 |
Servicing asset, net of valuation allowance | 844 | 870 |
Derivative asset | 0 | 0 |
Financial Liabilities: | ||
Noninterest bearing deposits | 0 | 0 |
NOW and money market | 0 | 0 |
Savings | 0 | 0 |
Time deposits | 643,354 | 616,973 |
Accrued interest payable | 0 | 0 |
Advances from the FHLB | 149,951 | 159,753 |
Subordinated debentures | 25,106 | 24,211 |
Servicing liability | 68 | 73 |
Derivative liability | 0 | 0 |
Carrying Value | ||
Financial Assets: | ||
Cash and due from banks | 75,647 | 75,411 |
Federal funds sold | 3,237 | 2,701 |
Marketable equity securities | 2,090 | 2,009 |
Available for sale securities | 93,017 | 93,154 |
Held to maturity securities | 21,318 | 21,421 |
Loans receivable, net | 1,551,620 | 1,586,775 |
Other real estate owned | 1,217 | |
Accrued interest receivable | 6,165 | 6,375 |
FHLB stock | 7,475 | 8,110 |
Servicing asset, net of valuation allowance | 844 | 870 |
Derivative asset | 1,987 | 2,867 |
Financial Liabilities: | ||
Noninterest bearing deposits | 161,704 | 173,198 |
NOW and money market | 502,178 | 533,837 |
Savings | 174,319 | 180,487 |
Time deposits | 639,530 | 614,722 |
Accrued interest payable | 1,895 | 1,381 |
Advances from the FHLB | 150,000 | 160,000 |
Subordinated debentures | 25,181 | 25,155 |
Servicing liability | 68 | 73 |
Derivative liability | 11,603 | 2,437 |
Fair Value | ||
Financial Assets: | ||
Cash and due from banks | 75,647 | 75,411 |
Federal funds sold | 3,237 | 2,701 |
Marketable equity securities | 2,090 | 2,009 |
Available for sale securities | 93,017 | 93,154 |
Held to maturity securities | 23,111 | 21,988 |
Loans receivable, net | 1,558,609 | 1,584,858 |
Other real estate owned | 1,217 | |
Accrued interest receivable | 6,165 | 6,375 |
FHLB stock | 7,475 | 8,110 |
Servicing asset, net of valuation allowance | 844 | 870 |
Derivative asset | 1,987 | 2,867 |
Financial Liabilities: | ||
Noninterest bearing deposits | 161,704 | 173,198 |
NOW and money market | 502,178 | 533,837 |
Savings | 174,319 | 180,487 |
Time deposits | 643,354 | 616,973 |
Accrued interest payable | 1,895 | 1,381 |
Advances from the FHLB | 149,951 | 159,753 |
Subordinated debentures | 25,106 | 24,211 |
Servicing liability | 68 | 73 |
Derivative liability | $ 11,603 | $ 2,437 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Narratives (Details) - Discount rate | Jun. 30, 2019 | Dec. 31, 2018 |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities, measurement input | 0.040 | 0.047 |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt securities, measurement input | 0.043 | 0.051 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial instruments carried at fair value on recurring basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable equity securities | $ 2,090 | $ 2,009 |
Available for sale securities | 93,017 | 93,154 |
U.S. Government and agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 92,516 | 82,136 |
State agency and municipal obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 4,007 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable equity securities | 2,090 | 2,009 |
Available for sale securities | 13,986 | 9,798 |
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable equity securities | 0 | 0 |
Available for sale securities | 79,031 | 83,356 |
Derivative asset | 1,987 | 2,867 |
Derivative liability | 11,603 | 2,437 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable equity securities | 0 | 0 |
Available for sale securities | 0 | 0 |
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Fair Value Measurements Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable equity securities | 2,090 | 2,009 |
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Fair Value Measurements Recurring | Level 1 | U.S. Government and agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 13,986 | 9,798 |
Fair Value Measurements Recurring | Level 1 | State agency and municipal obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 0 | 0 |
Fair Value Measurements Recurring | Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 0 | |
Fair Value Measurements Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable equity securities | 0 | 0 |
Derivative asset | 1,987 | 2,867 |
Derivative liability | 11,603 | 2,437 |
Fair Value Measurements Recurring | Level 2 | U.S. Government and agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 78,530 | 72,338 |
Fair Value Measurements Recurring | Level 2 | State agency and municipal obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 501 | 4,007 |
Fair Value Measurements Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 7,011 | |
Fair Value Measurements Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Marketable equity securities | 0 | 0 |
Derivative asset | 0 | 0 |
Derivative liability | 0 | 0 |
Fair Value Measurements Recurring | Level 3 | U.S. Government and agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | 0 | 0 |
Fair Value Measurements Recurring | Level 3 | State agency and municipal obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | $ 0 | 0 |
Fair Value Measurements Recurring | Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Available for sale securities | $ 0 |
Fair Value Measurements - Fin_2
Fair Value Measurements - Financial instruments carried at fair value on nonrecurring basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Other real estate owned | $ 1,217 | $ 0 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Other real estate owned | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Other real estate owned | 0 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Other real estate owned | 1,217 | |
Fair Value Measurements Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | |
Servicing asset, net | 0 | 0 |
Fair Value Measurements Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | |
Servicing asset, net | 0 | 0 |
Fair Value Measurements Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loans | 14,847 | 18,709 |
Other real estate owned | 1,217 | |
Servicing asset, net | $ 776 | $ 797 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative inputs and assumptions for Level 3 financial instruments carried at fair value on nonrecurring basis (Details) $ in Thousands | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Other real estate owned | $ 1,217 | $ 0 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Other real estate owned | 1,217 | |
Servicing liability | 68 | 73 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Other real estate owned | 1,217 | |
Servicing liability | 68 | 73 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Other real estate owned | 1,217 | |
Servicing liability | 68 | 73 |
Fair Value Measurements Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loans | 14,847 | 18,709 |
Other real estate owned | 1,217 | |
Servicing asset, net | 776 | 797 |
Fair Value Measurements Nonrecurring | Level 3 | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loans | 14,847 | 18,709 |
Servicing asset, net | $ 776 | $ 797 |
Fair Value Measurements Nonrecurring | Level 3 | Discount rate | Fair Value | Discounted cash flows | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Servicing liability, measurement input (percent) | 0.019 | 0.028 |
Fair Value Measurements Nonrecurring | Level 3 | Discount rate | Fair Value | Minimum | Discounted cash flows | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Servicing asset, measurement input (percent) | 0.1000 | 0.1000 |
Fair Value Measurements Nonrecurring | Level 3 | Discount rate | Fair Value | Maximum | Discounted cash flows | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Servicing asset, measurement input (percent) | 0.1150 | 0.1200 |
Fair Value Measurements Nonrecurring | Level 3 | Prepayment rate | Fair Value | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Servicing asset, measurement input (percent) | 0.0300 | 0.0300 |
Fair Value Measurements Nonrecurring | Level 3 | Prepayment rate | Fair Value | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Servicing asset, measurement input (percent) | 0.1715 | 0.1500 |
Fair Value Measurements Nonrecurring | Level 3 | Impaired loans | Fair Value | Appraisals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loans | $ 7,779 | $ 10,188 |
Other real estate owned | 1,217 | |
Fair Value Measurements Nonrecurring | Level 3 | Impaired loans | Fair Value | Discounted cash flows | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loans | $ 7,068 | $ 8,521 |
Fair Value Measurements Nonrecurring | Level 3 | Impaired loans | Appraised value | Appraisals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Other real estate, measurement input (percent) | 0.3800 | |
Fair Value Measurements Nonrecurring | Level 3 | Impaired loans | Appraised value | Minimum | Appraisals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loan, measurement input (percent) | 0 | 0.0500 |
Fair Value Measurements Nonrecurring | Level 3 | Impaired loans | Appraised value | Maximum | Appraisals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loan, measurement input (percent) | 0.2800 | 0.0800 |
Fair Value Measurements Nonrecurring | Level 3 | Impaired loans | Discount rate | Minimum | Discounted cash flows | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loan, measurement input (percent) | 0.0360 | 0.0325 |
Fair Value Measurements Nonrecurring | Level 3 | Impaired loans | Discount rate | Maximum | Discounted cash flows | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loan, measurement input (percent) | 0.0800 | 0.0800 |
Subordinated debentures (Detail
Subordinated debentures (Detail Textuals) - Fixed rated subordinated notes | Aug. 19, 2015USD ($) |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 25,500,000 |
Notes non-callable term (in years) | 5 years |
Stated maturity date of notes | Aug. 15, 2025 |
Quarterly pay fixed interest rate of notes | 5.75% |
Leases - Narratives (Details)
Leases - Narratives (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019USD ($)Branch | Jun. 30, 2019USD ($)Branch | Jan. 01, 2019 | |
Lessee, Lease, Description | |||
Branches under operating lease agreement | Branch | 10 | 10 | |
Weighted average remaining lease term | 6 years 9 months 1 day | 6 years 9 months 1 day | |
Weighted average discount rate (percent) | 6.00% | 6.00% | 6.00% |
Operating lease cost | $ 500 | $ 1,000 | |
Right of use asset | 9,900 | 9,900 | |
Operating lease liability | $ 9,935 | $ 9,935 | |
Land | |||
Lessee, Lease, Description | |||
Remaining lease term | 81 years 1 month 18 days |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Operating Lease Liabilities, Payments Due | |
2019 | $ 995 |
2020 | 1,842 |
2021 | 1,739 |
2022 | 1,118 |
2023 | 1,134 |
Thereafter | 15,898 |
Total | 22,726 |
Discount effect of cash flows | (12,791) |
Operating Lease, Liability | $ 9,935 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Jul. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Subsequent Event | |||||
Dividends per common share (in dollars per share) | $ 0.13 | $ 0.12 | $ 0.26 | $ 0.24 | |
Subsequent Event | |||||
Subsequent Event | |||||
Dividends per common share (in dollars per share) | $ 0.13 |