Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Mar. 24, 2021 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2020 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity File Number | 001-39610 | |
Entity Registrant Name | Eastern Bankshares, Inc. | |
Entity Incorporation, State or Country Code | MA | |
Entity Tax Identification Number | 84-4199750 | |
Entity Address, Address Line One | 265 Franklin Street | |
Entity Address, City or Town | Boston | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02110 | |
City Area Code | 800 | |
Local Phone Number | 327-8376 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | EBC | |
Security Exchange Name | NASDAQ | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
ICFR Auditor Attestation Flag | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 186,758,154 | |
Documents Incorporated by Reference | Portions of the Registrant's definitive proxy statement relating to its 2021 annual meeting of shareholders (the "2021 Proxy Statement") are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. The 2021 Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates. | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | FY | |
Entity Central Index Key | 0001810546 | |
Entity Public Float | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 116,591 | $ 135,503 |
Short-term investments | 1,937,479 | 227,099 |
Cash and cash equivalents | 2,054,070 | 362,602 |
Debt Securities [Abstract] | ||
Trading | 0 | 961 |
Available for sale | 3,183,861 | 1,508,236 |
Total securities | 3,183,861 | 1,509,197 |
Loans held for sale | 1,140 | 26 |
Loans: | ||
Total loans | 9,730,525 | 8,987,046 |
Less: allowance for loan losses | (113,031) | (82,297) |
Less: unamortized premiums, net of unearned discounts and deferred fees | (23,536) | (5,565) |
Net loans | 9,593,958 | 8,899,184 |
Federal Home Loan Bank stock, at cost | 8,805 | 9,027 |
Premises and equipment | 49,398 | 57,453 |
Bank-owned life insurance | 78,561 | 77,546 |
Goodwill and other intangibles, net | 376,534 | 377,734 |
Deferred income taxes, net | 13,229 | 28,207 |
Prepaid expenses | 148,680 | 61,336 |
Other assets | 455,954 | 246,463 |
Total assets | 15,964,190 | 11,628,775 |
Deposits: | ||
Demand | 4,910,794 | 3,517,447 |
Interest checking accounts | 2,380,497 | 1,814,327 |
Savings accounts | 1,256,736 | 971,119 |
Money market investment | 3,348,898 | 2,919,360 |
Certificates of deposit | 258,859 | 329,139 |
Total deposits | 12,155,784 | 9,551,392 |
Borrowed funds: | ||
Federal funds purchased | 0 | 201,082 |
Federal Home Loan Bank advances | 14,624 | 18,964 |
Escrow deposits of borrowers | 13,425 | 15,349 |
Total borrowed funds | 28,049 | 235,395 |
Other liabilities | 352,305 | 241,835 |
Total liabilities | 12,536,138 | 10,028,622 |
Commitments and contingencies (see footnote 16) | $ 0 | 0 |
Common stock outstanding (in shares) | 186,758,154 | |
Common stock issued (in shares) | 186,758,154 | |
Common stock, authorized (in shares) | 1,000,000,000 | |
Common stock, par value (in shares) | $ 0.01 | |
Common shares, $0.01 par value, 1,000,000,000 shares authorized, 186,758,154 shares issued and outstanding at December 31, 2020 | $ 1,868 | 0 |
Additional paid in capital | 1,854,068 | 0 |
Unallocated common shares held by the Employee Stock Ownership Plan | (147,725) | 0 |
Retained earnings | 1,665,607 | 1,644,000 |
Accumulated other comprehensive income, net of tax | 54,234 | (43,847) |
Total shareholders' equity | 3,428,052 | 1,600,153 |
Total liabilities and equity | 15,964,190 | 11,628,775 |
Commercial and industrial | ||
Loans: | ||
Total loans | 1,995,016 | 1,642,184 |
Commercial real estate | ||
Loans: | ||
Total loans | 3,573,630 | 3,535,441 |
Commercial construction | ||
Loans: | ||
Total loans | 305,708 | 273,774 |
Business banking | ||
Loans: | ||
Total loans | 1,339,164 | 771,498 |
Residential real estate | ||
Loans: | ||
Total loans | 1,370,957 | 1,428,630 |
Consumer home equity | ||
Loans: | ||
Total loans | 868,270 | 933,088 |
Other consumer | ||
Loans: | ||
Total loans | $ 277,780 | $ 402,431 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Oct. 16, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in shares) | $ 0.01 | |
Common stock, authorized (in shares) | 1,000,000,000 | |
Common stock issued (in shares) | 186,758,154 | 186,758,154 |
Common stock outstanding (in shares) | 186,758,154 | 186,758,154 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest and dividend income: | |||
Interest and fees on loans | $ 372,152 | $ 402,092 | $ 369,148 |
Taxable interest and dividends on available for sale securities | 31,825 | 31,400 | 31,988 |
Non-taxable interest and dividends on available for sale securities | 7,588 | 8,306 | 9,585 |
Interest on federal funds sold and other short-term investments | 1,757 | 2,977 | 3,412 |
Interest and dividends on trading securities | 6 | 242 | 1,033 |
Total interest and dividend income | 413,328 | 445,017 | 415,166 |
Interest expense: | |||
Interest on deposits | 11,315 | 27,301 | 17,384 |
Interest on borrowings | 762 | 6,452 | 7,738 |
Total interest expense | 12,077 | 33,753 | 25,122 |
Net interest income | 401,251 | 411,264 | 390,044 |
Provision for loan losses | 38,800 | 6,300 | 15,100 |
Net interest income after provision for credit losses | 362,451 | 404,964 | 374,944 |
Noninterest income: | |||
Insurance commissions | 94,495 | 90,587 | 91,885 |
Service charges on deposit accounts | 21,560 | 27,043 | 26,897 |
Trust and investment advisory fees | 21,102 | 19,653 | 19,128 |
Debit card processing fees | 10,277 | 10,452 | 16,162 |
Interest rate swap (losses) income | (1,381) | 4,362 | 5,012 |
Income (losses) from investments held in rabbi trusts | 10,337 | 9,866 | (1,542) |
(Losses) gains on trading securities, net | (4) | 1,297 | 2,156 |
Gains on sales of mortgage loans held for sale, net | 7,066 | 795 | 397 |
Gains on sales of securities available for sale, net | 288 | 2,016 | 50 |
Other | 14,633 | 16,228 | 20,450 |
Total noninterest income | 178,373 | 182,299 | 180,595 |
Noninterest expense: | |||
Salaries and employee benefits | 261,827 | 252,238 | 239,349 |
Office occupancy and equipment | 33,796 | 36,458 | 35,480 |
Data processing | 45,259 | 45,939 | 45,260 |
Professional services | 18,902 | 15,958 | 14,812 |
Charitable contributions | 95,272 | 12,905 | 13,251 |
Marketing | 8,879 | 9,619 | 11,100 |
Loan expenses | 6,727 | 4,593 | 3,852 |
FDIC insurance | 3,734 | 1,878 | 4,180 |
Amortization of intangible assets | 2,857 | 3,542 | 3,891 |
Other | 27,670 | 29,554 | 26,753 |
Total noninterest expense | 504,923 | 412,684 | 397,928 |
Income before income tax expense | 35,901 | 174,579 | 157,611 |
Income tax provision (benefit) | 13,163 | 39,481 | 34,884 |
Net income | $ 22,738 | $ 135,098 | $ 122,727 |
Basic (in dollars per share) | $ 0.13 | $ 0 | $ 0 |
Diluted (in dollars per share) | $ 0.13 | $ 0 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 22,738 | $ 135,098 | $ 122,727 |
Other comprehensive income, net of tax: | |||
Net change in fair value of securities available for sale | 23,874 | 41,158 | (30,525) |
Net change in fair value of cash flow hedges | 14,191 | 12,636 | 2,988 |
Net change in other comprehensive income for defined benefit postretirement plans | 60,016 | (21,880) | 7,437 |
Total other comprehensive income | 98,081 | 31,914 | (20,100) |
Total comprehensive income | $ 120,819 | $ 167,012 | $ 102,627 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Cumulative effect accounting adjustment | [3] | Common Stock [Member] | Additional Paid-in Capital | Retained Earnings [Member] | Retained Earnings [Member]Cumulative effect accounting adjustment | [3] | AOCI Attributable to Parent [Member] | Deferred compensation plans | ||
Beginning balance (in shares) at Dec. 31, 2017 | 0 | |||||||||||
Beginning balance at Dec. 31, 2017 | $ 1,330,514 | $ 0 | $ 0 | $ 1,379,006 | $ (48,492) | $ 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Opening balance reclassification - Unrealized appreciation on securities available for sale | [1] | 0 | (1,953) | 1,953 | ||||||||
Opening balance reclassification - Actuarial net loss of defined benefit pension plans | [1] | $ 0 | 9,122 | (9,122) | ||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201802Member | |||||||||||
Unrealized appreciation on securities available for sale | $ (30,525) | |||||||||||
Actuarial net loss of defined benefit pension plans | 1,926 | |||||||||||
Net income | 122,727 | 122,727 | ||||||||||
Other comprehensive income, net of tax | (20,100) | (20,100) | ||||||||||
Payments for deferred offering costs | 0 | |||||||||||
Issuance of common shares donated to the Eastern Bank Charitable Foundation | [2] | 0 | ||||||||||
Ending balance (in shares) at Dec. 31, 2018 | 0 | |||||||||||
Ending balance at Dec. 31, 2018 | 1,433,141 | $ 0 | 0 | 1,508,902 | (75,761) | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Unrealized appreciation on securities available for sale | 41,158 | |||||||||||
Actuarial net loss of defined benefit pension plans | (27,119) | |||||||||||
Net income | 135,098 | 135,098 | ||||||||||
Other comprehensive income, net of tax | 31,914 | 31,914 | ||||||||||
Payments for deferred offering costs | 346 | |||||||||||
Issuance of common shares donated to the Eastern Bank Charitable Foundation | [2] | 0 | ||||||||||
Ending balance (in shares) at Dec. 31, 2019 | 0 | |||||||||||
Ending balance at Dec. 31, 2019 | $ 1,600,153 | $ (1,131) | $ 0 | 0 | 1,644,000 | $ (1,131) | (43,847) | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | |||||||||||
Unrealized appreciation on securities available for sale | $ 23,874 | |||||||||||
Actuarial net loss of defined benefit pension plans | (42,279) | |||||||||||
Net income | 22,738 | 22,738 | ||||||||||
Other comprehensive income, net of tax | 98,081 | 98,081 | ||||||||||
Payments for deferred offering costs | 28,552 | |||||||||||
Proceeds of stock offering and issuance of common shares (net of costs of $28.9 million) (in shares) | 179,287,828 | |||||||||||
Proceeds of stock offering and issuance of common shares (net of costs of $28.9 million ) | 1,763,980 | $ 1,793 | 1,762,187 | |||||||||
Issuance of common shares donated to the Eastern Bank Charitable Foundation | $ 91,287 | [2] | $ 75 | 91,212 | ||||||||
Issuance of common shares to the Eastern Bank Charitable Foundation (in shares) | 7,470,326 | 7,470,326 | ||||||||||
Purchase of common shares by the ESOP (14,940,652 shares) | $ (149,407) | (149,407) | ||||||||||
ESOP shares committed to be released | $ 2,351 | 669 | 1,682 | |||||||||
Ending balance (in shares) at Dec. 31, 2020 | 186,758,154 | 186,758,154 | ||||||||||
Ending balance at Dec. 31, 2020 | $ 3,428,052 | $ 1,868 | $ 1,854,068 | $ 1,665,607 | $ 54,234 | $ (147,725) | ||||||
[1] | Represents adjustments needed to reflect the cumulative impact on retained earnings for reclassification of the income tax effect attributable to accumulated other comprehensive income, as a result of the Tax Cuts and Jobs Act (the “Tax Act”). Pursuant to the Company’s adoption of Accounting Standards Update 2018-02, the Company elected to reclassify amounts stranded in other comprehensive income to retained earnings. | |||||||||||
[2] | Represents a non-cash common stock donation of 7,470,326 shares at a fair value of $91.3 million to the Eastern Bank Charitable Foundation. The donation is included in charitable contributions as a non-interest expense in the Consolidated Income Statement for the year ended December 31, 2020. | |||||||||||
[3] | Represents cumulative impact on retained earnings pursuant to the Company’s adoption of Accounting Standards Update 2016-02 Leases. The transition adjustment to the opening balance of retained earnings on January 1, 2020 amounted to $1.1 million, net of tax, related to an incremental accrued rent adjustment calculated as a result of electing the hindsight practical expedient. |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity - Parenthetical $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)shares | |
Total shares (in shares) | shares | 14,940,652 |
Issuance cost | $ 28,900 |
Shareholders’ equity | 3,428,052 |
Retained Earnings [Member] | |
Shareholders’ equity | $ 1,665,607 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Operating activities | ||||
Net income | $ 22,738 | $ 135,098 | $ 122,727 | |
Adjustments to reconcile net income to net cash provided by operating activities | ||||
Provision for loan losses | 38,800 | 6,300 | 15,100 | |
Depreciation and amortization | 15,827 | 19,482 | 20,068 | |
Change in unamortized net loan costs and premiums | (14,574) | 5,130 | 1,491 | |
Deferred income tax expense (benefit) | (20,359) | 1,376 | (4,878) | |
Amortization of investment security premiums and discounts | 5,585 | 3,063 | 3,256 | |
Right-of-use asset amortization | 12,082 | 0 | 0 | |
Increase in cash surrender value of bank-owned life insurance | (2,188) | (2,112) | (15) | |
Gain on life insurance benefits | (174) | 0 | 0 | |
Net gain on sale of securities available for sale | (288) | (2,016) | (50) | |
Mark to market on loans held for sale | 19 | 0 | 0 | |
Amortization of gains from terminated interest rate swaps | (15,889) | 0 | 0 | |
Loss on sale and impairment of premises and equipment held for use | 73 | 271 | 145 | |
Net gain on other real estate owned | (606) | 0 | 0 | |
ESOP expense | 2,351 | 0 | 0 | |
Trading securities | 961 | 51,938 | (6,108) | |
Loans held for sale | (1,133) | (4) | 2,332 | |
Prepaid pension expense | (24,055) | (11,031) | 11,237 | |
Other assets | (89,590) | (30,952) | 21,536 | |
Other liabilities | 48,984 | 19,680 | 18,168 | |
Issuance of common shares donated to the Eastern Bank Charitable Foundation | [1] | 91,287 | 0 | 0 |
Net cash provided by operating activities | 69,851 | 196,223 | 205,009 | |
Investing activities | ||||
Proceeds from sales of securities available for sale | 9,097 | 47,985 | 11,672 | |
Proceeds from maturities and principal paydowns of securities available for sale | 452,392 | 204,065 | 162,425 | |
Purchases of securities available for sale | (2,111,773) | (252,571) | (167,584) | |
Proceeds from sale of Federal Home Loan Bank stock | 749 | 42,034 | 18,346 | |
Purchases of Federal Home Loan Bank stock | (527) | (33,102) | (12,035) | |
Contributions to low income housing tax credit investments | (12,372) | (6,349) | (3,270) | |
Contributions to other equity investments | (4,395) | (4,545) | (146) | |
Distributions from other equity investments | 201 | 62 | 226 | |
Proceeds from life insurance policies | 1,347 | 0 | 743 | |
Net increase in outstanding loans | (719,041) | (135,666) | (637,518) | |
Acquisition of businesses, net of cash acquired | (1,363) | 0 | (11,500) | |
Proceeds from sale of portion of insurance agency business | 0 | 0 | 571 | |
Purchased banking premises and equipment, net | (5,144) | (7,187) | (9,034) | |
Proceeds from sale of other real estate owned | 646 | 0 | 0 | |
Net cash used in investing activities | (2,390,183) | (145,274) | (647,104) | |
Financing activities | ||||
Net increase in demand, savings, interest checking, and money market investment deposit accounts | 2,674,672 | 297,708 | 485,087 | |
Net (decrease) increase in time deposits | (70,280) | (145,809) | 98,954 | |
Net decrease in borrowed funds | (207,346) | (98,892) | (192,218) | |
Contingent consideration paid | (165) | (716) | (1,173) | |
Proceeds from issuance of common shares | 1,792,878 | 0 | 0 | |
Purchase of shares by the ESOP | (149,407) | 0 | 0 | |
Payment of deferred offering costs | (28,552) | (346) | 0 | |
Net cash provided by financing activities | 4,011,800 | 51,945 | 390,650 | |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 1,691,468 | 102,894 | (51,445) | |
Cash, cash equivalents, and restricted cash at beginning of period | 362,602 | 259,708 | 311,153 | |
Cash, cash equivalents, and restricted cash at end of period | 2,054,070 | 362,602 | 259,708 | |
Supplemental disclosure of cash flow information | ||||
Interest paid | 13,684 | 34,217 | 23,732 | |
Income taxes | 35,128 | 31,308 | 29,731 | |
Non-cash activities | ||||
Net increase in capital commitments relating to low income housing tax credit projects | 25,816 | 10,000 | 13,000 | |
Initial recognition of operating lease right-of-use assets upon adoption of ASU 2016-02 | 92,948 | 0 | 0 | |
Initial recognition of operating lease liabilities upon adoption of ASU 2016-02 | $ 96,426 | $ 0 | $ 0 | |
[1] | Represents a non-cash common stock donation of 7,470,326 shares at a fair value of $91.3 million to the Eastern Bank Charitable Foundation. The donation is included in charitable contributions as a non-interest expense in the Consolidated Income Statement for the year ended December 31, 2020. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows - Parenthetical - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Statement of Cash Flows [Abstract] | ||||
Issuance of common shares to the Eastern Bank Charitable Foundation (in shares) | 7,470,326 | |||
Issuance of common shares donated to the Eastern Bank Charitable Foundation | [1] | $ 91,287 | $ 0 | $ 0 |
[1] | Represents a non-cash common stock donation of 7,470,326 shares at a fair value of $91.3 million to the Eastern Bank Charitable Foundation. The donation is included in charitable contributions as a non-interest expense in the Consolidated Income Statement for the year ended December 31, 2020. |
Corporate Structure and Nature
Corporate Structure and Nature of Operations; Plan of Reorganization and Conversion; Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Corporate Structure and Nature of Operations; Plan of Reorganization and Conversion; Basis of Presentation | Corporate Structure and Nature of Operations; Conversion and Reorganization; Basis of Presentation Corporate Structure and Nature of Operations Eastern Bankshares, Inc., a Massachusetts corporation (the “Company”), is a bank holding company. Through its wholly-owned subsidiaries, Eastern Bank (the “Bank”) and Eastern Insurance Group LLC, the Company provides a variety of banking, trust and investment services, and insurance services, through its full-service bank branches and insurance offices, located primarily in Eastern Massachusetts, southern and coastal New Hampshire and Rhode Island. Eastern Insurance Group LLC is a wholly-owned subsidiary of the Bank. The activities of the Company are subject to the regulatory supervision of the board of governors of the Federal Reserve system (“Federal Reserve”). The activities of the Bank are subject to the regulatory supervision of the Federal Deposit Insurance Corporation (“FDIC”) and the Consumer Financial Protection Bureau (“CFPB”). The Company and the activities of the Bank are also subject to various Massachusetts and New Hampshire business and banking regulations. Conversion and Reorganization Pursuant to a Plan of Conversion (the “Plan”), Eastern Bank Corporation, the predecessor of the Company, reorganized from a mutual holding company into a publicly traded stock form of organization on October 14, 2020. In connection with the reorganization, Eastern Bank Corporation transferred to the Company 100% of Eastern Bank’s common stock, and immediately thereafter merged into the Company. Pursuant to the Plan, the Company sold 179,287,828 shares of common stock in a public offering at $10.00 per share, including 14,940,652 shares of common stock purchased by the Bank’s employee stock ownership plan (the “ESOP”), for gross offering proceeds of approximately $1,792,878,000. The Company completed the offering on October 14, 2020. Effective as of October 15, 2020, the Company donated 7,470,326 shares of common stock to the Eastern Bank Charitable Foundation (the “Foundation”). A total of 186,758,154 shares of common stock of the Company were issued and outstanding immediately after the donation to the Foundation. The purchase of common stock by the ESOP was financed by a loan from the Company. Pursuant to the Plan, eligible account holders have received an interest in a liquidation account maintained by the Company in an amount equal to (i) Eastern Bank Corporation’s ownership interest in the Bank’s total shareholders’ equity as of March 31, 2020, the date of the latest statement of financial position included in the latest prospectus filed with the U.S. Securities and Exchange Commission (“SEC”) for the Company's initial public offering (“IPO”), plus (ii) the value of the net assets of Eastern Bank Corporation as of March 31, 2020 (excluding its ownership of Eastern Bank). Also pursuant to the Plan, a parallel liquidation account maintained at the Bank was established to support the Company’s liquidation account in the event the Company does not have sufficient assets to fund its obligations under its liquidation account. The Company and the Bank will hold the liquidation accounts for the benefit of eligible account holders who continue to maintain deposits in the Bank. The Company is not permitted to pay dividends on its capital stock if the shareholders’ equity of the Company would be reduced below the amount of the liquidation account. The liquidation account will be reduced annually to the extent that eligible account holders have reduced their qualifying deposits. Subsequent increases will not restore an eligible account holder’s interest in the liquidation accounts. In the event of a complete liquidation of the Bank, and only in such event, each account holder will be entitled to receive a distribution from the liquidation account in an amount proportionate to the adjusted qualifying account balances then held. Basis of Presentation The Company’s Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) as set forth by the Financial Accounting Standards Board (“FASB”) and its Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) as well as the rules and interpretive releases of the SEC under the authority of federal securities laws. The Consolidated Financial Statements include the accounts of the Company, its wholly-owned subsidiaries, and entities in which it holds a controlling financial interest through being the primary beneficiary or through holding a majority of the voting interest. All intercompany accounts and transactions have been eliminated in consolidation. Certain previously reported amounts have been reclassified to conform to the current year's presentation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Use of Estimates In preparing the Consolidated Financial Statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheets and income and expenses for the periods reported. Actual results could differ from those estimates based on changing conditions, including economic conditions and future events. Material estimates that are particularly susceptible to change relate to the determination of the allowance for loan losses, valuation and fair value measurements, other-than-temporary impairment on investment securities, the liabilities for benefit obligations (particularly pensions), the provision for income taxes and impairment of goodwill and other intangibles. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and amounts due from banks, federal funds sold, and other short-term investments including restricted cash pledged, all of which have an original maturity of 90 days or less. Cash and cash equivalents includes $49.2 million and $22.2 million of restricted cash pledged as collateral at December 31, 2020 and 2019, respectively, which for purposes of the Company’s consolidated statements of cash flows, is included in cash, cash equivalents and restricted cash. Securities Debt securities are classified at the time of purchase as either “trading,” “available for sale” or “held to maturity.” Equity securities are measured at fair value with changes in the fair value recognized through net income. Debt securities that are bought and held principally for the purpose of resale in the near terms are classified as trading securities and recorded at fair value, with subsequent changes in fair value included in net income. Debt securities that the Company has the positive intent and the ability to hold to maturity are classified as held to maturity securities and recorded at amortized cost. Debt securities not classified as either trading or held to maturity are classified as available for sale and recorded at fair value, with changes in fair value excluded from net income and reported in other comprehensive income, net of related tax. Amortization of premiums and accretion of discounts are computed using the effective interest rate method. Management evaluates impaired securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to the length of time and the extent to which the fair value has been less than cost, current market conditions, the financial condition and near-term prospects of the issuer, performance of collateral underlying the securities, the ratings of the individual securities, the interest rate environment, the Company’s intent to sell the security or whether it is more likely than not that the Company will be required to sell the debt security before its anticipated recovery, as well as other qualitative factors. If a decline in fair value below the amortized cost basis of an investment is judged to be other than temporary, the investment is written down to fair value. The portion of the impairment related to credit losses is included in net income, and the portion of the impairment related to other factors is included in other comprehensive income. Gains and losses on sales of securities are recognized at the time of sale on the specific-identification basis. Loans Loans are reported at their principal amount outstanding, net of deferred loan fees and any unearned discount or unamortized premium for acquired loans. Unearned discount and unamortized premium are accreted and amortized, respectively, to interest and dividend income on a basis that results in level rates of return over the terms of the loans. For originated loans, origination fees and related direct incremental origination costs are offset, and the resulting net amount is deferred and amortized over the life of the related loans using the interest method, assuming a certain level of prepayments. When loans are sold or repaid, the unamortized fees and costs are recorded to interest and dividend income. Interest income on loans is accrued based upon the daily principal amount outstanding except for loans on non-accrual status. For acquired loans with no signs of credit deterioration at acquisition, interest income is also accrued based upon the daily principal amount outstanding, adjusted further by the accretion of any discount or amortization of any premium associated with the loan. Non-performing Loans (“NPLs”) Non-accrual Loans Interest accruals are generally discontinued when management has determined that the borrower may be unable to meet contractual obligations and/or when loans are 90 days or more past due. Exceptions may be made if management believes that collateral held by the Company is clearly sufficient and in full satisfaction of both principal and interest or the loan is accounted for as a purchased credit-impaired loan. When a loan is placed on non-accrual, all interest previously accrued but not collected is reversed against current period income and amortization of deferred loan fees is discontinued. Interest received on non-accrual loans is either applied against principal or reported as income according to management’s judgment as to the collectability of principal. Non-accrual loans may be returned to an accrual status when principal and interest payments are no longer delinquent, and the risk characteristics of the loan have improved to the extent that there no longer exists a concern as to the collectability of principal and interest. Loans are considered past due based upon the number of days delinquent according to their contractual terms. Non-accrual loans and loans that are more than 90 days past due but still accruing interest are considered NPLs. Impaired Loans Impaired loans consist of all loans for which management has determined it is probable the Company will be unable to collect all amounts due according to the contractual terms of the loan agreements. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. The Company measures impairment of loans using a discounted cash flow method, the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. Troubled Debt Restructured (“TDR”) Loans In cases where a borrower experiences financial difficulties and the Company makes certain concessionary modifications to contractual terms, the loan is classified as a TDR. Modifications may include adjustments to interest rates, extensions of maturity, consumer loans where the borrower’s obligations have been effectively discharged through Chapter 7 bankruptcy and the borrower has not reaffirmed the debt to the Company, and other actions intended to minimize economic loss and avoid foreclosure or repossession of collateral. All TDR loans are considered impaired and therefore are subject to a specific review for impairment loss. The impairment analysis discounts the present value of the anticipated cash flows by the loan’s contractual rate of interest in effect prior to the loan’s modification or the fair value of collateral if the loan is collateral dependent. The amount of impairment loss, if any, is recorded as a specific loss allocation to each individual loan in the allowance for loan losses. Commercial loans (commercial and industrial, commercial real estate, commercial construction, and business banking loans) and residential loans that have been classified as TDRs and which subsequently default are reviewed to determine if the loan should be deemed collateral dependent. In such an instance, any shortfall between the value of the collateral and the book value of the loan is determined by measuring the recorded investment in the loan against the fair value of the collateral less costs to sell. The Company’s policy is to retain any restructured loans, which are on non-accrual status prior to being modified, on non-accrual status for approximately six months subsequent to being modified before the Company considers its return to accrual status. If the restructured loan is on accrual status prior to being modified, the Company reviews it to determine if the modified loan should remain on accrual status. Purchased Credit-impaired (“PCI”) Loans At acquisition, loans that have evidence of deterioration in credit quality since origination and for which it is probable that all contractually required payments will not be collected are initially recorded at fair value with no valuation allowance. Such loans are deemed to be PCI loans. Under the accounting model for PCI loans, the excess of cash flows expected to be collected over the carrying amount of the loans, referred to as the “accretable yield,” is accreted into interest income over the life of the loans using the effective yield method. Accordingly, PCI loans are not subject to classification as non-accrual in the same manner as originated loans. Rather, acquired loans are considered to be accruing loans because their interest income relates to the accretable yield recognized and not to contractual interest payments at the loan level. The difference between contractually required principal and interest payments and the cash flows expected to be collected, referred to as the “non-accretable difference,” includes estimates of both the impact of prepayments and future credit losses expected to be incurred over the life of the loans. The estimate of cash flows expected to be collected is regularly re-assessed subsequent to acquisition. These re-assessments involve updates, as necessary, of the key assumptions and estimates used in the initial estimate of fair value. Generally speaking, expected cash flows are affected by: • Changes in the expected principal and interest payments over the estimated life – Changes in expected cash flows may be driven by the credit outlook and actions taken with borrowers. Changes in expected future cash flows resulting from loan modifications are included in the assessment of expected cash flows. • Change in prepayment assumptions – Prepayments affect the estimated life of the loans, which may change the amount of interest income expected to be collected. • Change in interest rate indices for variable rate loans – Expected future cash flows are based, as applicable, on the variable rates in effect at the time of the assessment of expected cash flows. A decrease in expected cash flows in subsequent periods may indicate that the loan is impaired which would require the establishment of an allowance for loan losses by a charge to the provision for loan losses. An increase in expected cash flows in subsequent periods serves, first, to reduce any previously established allowance for loan losses by the increase in the present value of cash flows expected to be collected, and results in a recalculation of the amount of accretable yield for the loan. The adjustment of accretable yield due to an increase in expected cash flows is accounted for as a change in estimate. The additional cash flows expected to be collected are reclassified from the non-accretable difference to the accretable yield, and the amount of periodic accretion is adjusted accordingly over the remaining life of the loans. A PCI loan may be resolved either through receipt of payment (in full or in part) from the borrower, the sale of the loan to a third party, or foreclosure of the collateral. For PCI loans accounted for on an individual loan basis and resolved directly with the borrower, any amount received from resolution in excess of the carrying amount of the loan is recognized and reported within interest income. A refinancing or modification of a PCI loan accounted for individually is assessed to determine whether the modification represents a TDR. If the loan is considered to be a TDR, it will be included in the total impaired loans reported by the Company. The loan will continue to recognize interest income based upon the excess of cash flows expected to be collected over the carrying amount of the loan. Allowance for Loan Losses The allowance for loan losses is established to provide for probable losses incurred in the Company’s loan portfolio at the balance sheet date and is established through a provision for loan losses charged to net income. The allowance is based on management’s assessment of many factors, including the risk characteristics of the loan portfolio, current economic conditions, and trends in loan delinquencies and charge-offs. Charge-offs, net of recoveries, are charged directly to the allowance. Commercial and residential loans are charged-off in the period in which they are deemed uncollectible. Delinquent loans in these product types are subject to ongoing review and analysis to determine if a charge-off in the current period is appropriate. For consumer finance loans, policies and procedures exist that require charge-off consideration upon a certain triggering event depending on the product type. Charge-off triggers include: 120 days delinquent for automobile, home equity, and other consumer loans with the exception of cash reserve loans for which the trigger is 150 days delinquent; death of the borrower; or Chapter 7 bankruptcy. In addition to those events, the charge-off determination includes other loan quality indicators, such as collateral position and adequacy or the presence of other repayment sources. The allowance for loan losses is evaluated on a regular basis by management. While management uses current information in establishing the allowance for losses, future adjustments to the allowance may be necessary if economic conditions or conditions relative to borrowers differ substantially from the assumptions used in making the evaluation. Management uses a methodology to systematically estimate the amount of loss incurred in the portfolio. The Company’s commercial real estate, commercial and industrial, commercial construction and business banking loans are evaluated using a loan rating system, historical losses and other factors which form the basis for estimating incurred losses. Homogeneous populations of loans, including residential mortgages and consumer loans, are analyzed as groups taking into account delinquency ratios, historical loss experience and charge-offs. The allowance consists of specific and general components. The specific component consists of reserves for impaired loans (defined as those where management has determined it is probable it will not collect all payments when due), typically classified as either doubtful or substandard. For impaired loans, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the loan is lower than the carrying value of the loan. The general component covers non-impaired, non-classified loans and is based on the Company’s historical loss experience adjusted for qualitative factors, including internal infrastructure factors, external macroeconomic factors, internal portfolio factors and external industry data, all customized to loan pools that include loans with similar characteristics. In the ordinary course of business, the Company enters into commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the financial statements when they become payable. The credit risk associated with these commitments is evaluated in a manner similar to the allowance for loan losses. The reserve for unfunded lending commitments is included in other liabilities in the balance sheet. Additionally, various regulatory agencies, as an integral part of the Company’s examination process, periodically assess the appropriateness of the allowance for loan losses and may require the Company to increase its provision for loan losses or recognize further loan charge-offs, in accordance with GAAP. Mortgage Banking Activities Mortgage loans held for sale to the secondary market are carried at the lower of cost or estimated market value on an individual loan basis. The Company enters into commitments to fund residential mortgage loans with an offsetting forward commitment to sell them in the secondary markets in order to mitigate interest rate risk. Gains or losses on sales of mortgage loans are recognized in the consolidated statements of income at the time of sale. Interest income is recognized on loans held for sale between the time the loan is funded and the loan is sold. Direct loan origination costs and fees are deferred upon origination and are recognized in the consolidated statements of income on the date of sale. Other Real Estate Owned OREO consists of properties and other assets acquired through foreclosure proceedings or acceptance of a deed in lieu of foreclosure. OREO is recorded in other assets in consolidated balance sheets, on an individual asset basis at the lower of cost or fair value, less estimated selling costs. The Company relies primarily on third-party valuation information from certified appraisers and values are generally based upon recent appraisals of the underlying collateral, brokers’ opinions based upon recent sales of comparable properties, estimated equipment auction or liquidation values, income capitalization, or a combination of income capitalization and comparable sales. As of December 31, 2020 and 2019, the Company’s OREO was immaterial. Federal Home Loan Bank Stock The Company, as a member of the Federal Home Loan Bank ("FHLB") of Boston, is required to maintain an investment in capital stock of the FHLB. Based on redemption provisions, the stock has no quoted market value and is carried at cost. Premises and Equipment Land is carried at cost. Buildings, leasehold improvements and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the lease terms or the estimated lives of the improvements. Expected lease terms include lease options to the extent that the exercise of such options is reasonably assured. Banking premises and equipment held for sale are carried at the lower of cost or estimated fair value, less estimated costs to sell. Goodwill and Other Intangible Assets Acquisitions of businesses are accounted for using the acquisition method of accounting. Accordingly, the net assets of the companies acquired are recorded at their fair values at the date of acquisition. Goodwill represents the excess of purchase price over the fair value of net assets acquired. Other intangible assets represent acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights, or because the asset is capable of being sold or exchanged either on its own, or in combination with a related contract, asset, or liability. The Company evaluates goodwill for impairment at least annually, during the third quarter, or more often if warranted, using a quantitative impairment approach. The quantitative impairment test compares the book value to the fair value of each reporting unit. If the book value exceeds the fair value, an impairment is charged to net income. Management has identified two reporting units for purposes of testing goodwill for impairment: the banking business and the insurance agency business. Other intangible assets, all of which are definite-lived, are stated at cost less accumulated amortization. The Company evaluates other intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be fully recovered. The Company considers factors including, but not limited to, changes in legal factors and business climate that could affect the value of the intangible asset. Any impairment losses are charged to net income. The Company amortizes other intangible assets over their respective estimated useful lives. The estimated useful lives of core deposit identifiable intangible assets fall within a range of seven to ten years and the estimated useful life of customer lists from insurance agency acquisitions is ten years. The estimated useful life of non-compete agreements resulting from insurance agency acquisitions are dependent upon the terms of the agreement. The Company reassesses the useful lives of other intangible assets at least annually, or more frequently based on specific events or changes in circumstances. Retirement Plans The Company provides benefits to its employees and executive officers through various retirement plans, including a defined benefit plan, a defined benefit supplemental executive retirement plan, a defined contribution plan, a benefit equalization plan, and an outside directors’ retainer continuance plan. Effective November 1, 2020, the defined benefit plan and the benefit equalization plan were amended to convert the plans from a traditional final average earnings plan design to a cash balance plan design. Benefits earned under the final average earnings plan design were frozen at October 31, 2020. Starting November 1, 2020, future benefits are earned under the cash balance plan design. The defined benefit plan benefits are provided through membership in the Savings Banks Employees’ Retirement Association (“SBERA”). The plan is a noncontributory, defined benefit plan (“Defined Benefit Plan”). Under the final average earnings plan design, benefits became fully vested after three years of eligible service for individuals employed on or before October 31, 1989. For individuals employed subsequent to October 31, 1989 and who were already in the Defined Benefit Plan as of November 1, 2020, benefits became fully vested after five years of eligible service. Under the cash balance plan design and for employees who were not already in the Defined Benefit Plan as of November 1, 2020, benefits become fully vested after three years of eligible service. The annual contribution to the Defined Benefit Plan is based upon standards established by the Pension Protection Act. The contribution is based on an actuarial method intended to provide not only for benefits attributable to service to date, but also for those expected to be earned in the future. The Company also has an unfunded Defined Benefit Supplemental Executive Retirement Plan (“DB SERP”) that provides certain retired and currently employed officers with defined pension benefits in excess of qualified plan limits imposed by U.S. federal tax law. The DB SERP has a plan year end of December 31. The Company also has an unfunded Benefit Equalization Plan (“BEP”) to provide retirement benefits to certain employees whose retirement benefits under the Defined Benefit Plan are limited per the Internal Revenue Code. The BEP has a plan year end of October 31. The Company also has an unfunded Outside Directors’ Retainer Continuance Plan (“ODRCP”) that provides pension benefits to outside directors who retire from service. The Outside Directors’ Retainer Continuance Plan has a plan year end of December 31. Effective December 31, 2020, the Company closed the ODRCP to new participants and froze benefit accruals for active participants. Plan assets are invested in various investment funds and held at fair value which generally represents observable market prices. Pension liability is determined based on the actuarial cost method factoring in assumptions such as salary increases, expected retirement date, mortality rate, and employee turnover. The actuarial cost method used to compute the pension liabilities and related expense is the projected unit credit method. The projected benefit obligation is principally determined based on the present value of the projected benefit distributions at an assumed discount rate (which is the rate at which the projected benefit obligation could be effectively settled as of the measurement date). The discount rate which is utilized is determined using the spot rate approach whereby the individual spot rates on the Financial Times and Stock Exchange (“FTSE”) above-median yield curve are applied to each corresponding year’s projected cash flow used to measure the respective plan’s service cost and interest cost. Periodic pension expense (or income) includes service costs, interest costs based on the assumed discount rate, the expected return on plan assets, if applicable, based on the market value of assets and amortization of actuarial gains and losses. Net period benefit cost excluding service cost is included within other noninterest expense in the consolidated statements of income. Service cost for all plans except the ODRCP is included in salaries and employee benefits in the consolidated statements of income. Service cost for the ODRCP is included in professional services in the consolidated statements of income. The amortization of actuarial gains and losses for the DB SERP and ODRCP is determined using the 10% corridor minimum amortization approach and is taken over the average remaining future service of the plan participants for the ODRCP, and over the average remaining future life expectancy of plan participants for the DB SERP. The amortization of actuarial gains and losses for the Defined Benefit Plan and BEP is determined without using the 10% corridor minimum amortization approach and is taken over the average remaining future service of the plan participants. The overfunded or underfunded status of the plans is recorded as an asset or liability on the consolidated balance sheets, with changes in that status recognized through other comprehensive income, net of related taxes. Funded status represents the difference between the projected benefit obligation of the plan and the market value of the plan’s assets. Employee Tax Deferred Incentive Plan The Company has an employee tax deferred incentive plan (“401(k)”) under which the Company makes voluntary contributions within certain limitations. All employees who meet specified age and length of service requirements are eligible to participate in the 401(k) plan. The amount contributed by the Company is included in salaries and employee benefits expense. Defined Contribution Supplemental Executive Retirement Plan The Company has a defined contribution supplemental executive retirement plan (“DC SERP”), which allows certain senior officers to earn benefits calculated as a percentage of their compensation. The participant benefits are adjusted based upon a deemed investment performance of measurement funds selected by the participant. These measurement funds are for tracking purposes and are used only to track the performance of a mutual fund, market index, savings instrument, or other designated investment or portfolio of investments. Deferred Compensation The Company sponsors three plans which allow for elective compensation deferrals by directors, former trustees, and certain senior-level employees. Each plan allows its participants to designate deemed investments for deferred amounts from certain options which include diversified choices, such as exchange traded funds and mutual funds. Portfolios with various risk profiles are available to participants with the approval of the Compensation Committee. The Company purchases and sells investments which track the deemed investment choices, so that it has available funds to meet its payment liabilities. Deferred amounts, adjusted for deemed investment performance, are paid at the time of a participant designated date or event, such as separation from service, death, or disability. The total amounts due to participants under these plans are included in other liabilities on the Company’s consolidated balance sheets. Employee Stock Ownership Plan (“ESOP”) ESOP shares are shown as a reduction of equity and are presented in the consolidated statements of shareholders’ equity as unallocated common stock held by ESOP. Compensation expense for the Company’s ESOP is recorded at an amount equal to the shares committed to be allocated by the ESOP multiplied by the average fair market value of the shares during the year. The Company recognizes compensation expense ratably over the year based upon the Company’s estimate of the number of shares committed to be allocated by the ESOP. When the shares are released, unallocated common stock held by ESOP is reduced by the cost of the ESOP shares released and the difference between the average fair market value and the cost of the shares committed to be allocated by the ESOP is recorded as an adjustment to additional paid-in capital. The loan receivable from the ESOP is not reported as an asset nor is the Company’s guarantee to fund the ESOP reported as a liability on the Company’s consolidated balance sheet. Variable Interest Entities (“VIE”) and Voting Interest Entities (“VOE”) The Company is involved in the normal course of business with various types of special purpose entities, some of which meet the definition for VIEs and VOEs. VIEs are entities that possess any of the following characteristics: 1) the total equity investment at risk is insufficient to permit the legal entity to finance its activities without additional subordinated financial support from other parties; 2) as a group, the holders of the equity investment at risk lack any of the characteristics of a controlling financial interest; or 3) the equity investors’ voting rights are not proportional to the economics, and substantially all of the activities of the entity either involve or are conducted on behalf of an investor that has disproportionately few voting rights. The Company consolidates entities deemed to be VIEs when it, or a wholly-owned subsidiary, is determined to be the primary beneficiary. The primary beneficiary analysis is a qualitative analysis based on power and economics. An enterprise has a controlling financial interest in a VIE if it has both 1) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and 2) the obligation to absorb losses of the VIE that potentially could be significant to the VIE or the right to receive benefits from the VIE that potentially could be significant to the VIE. VOEs are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. The Company generally consolidates VOEs when it, or a wholly-owned subsidiary, holds the majority of the voting interest in the VOE. Rabbi Trusts The Company established rabbi trusts to meet its obligations under certain executive non-qualified retirement benefits and deferred compensation plans and to mitigate the expense volatility of the aforementioned retirement plans. The rabbi trusts are considered VIEs as the equity investment at risk is insufficient to permit the trust to finance its activities without additional subordinated financial support from the Company. The Company is considered the primary beneficiary of the rabbi trusts as it has the power to direct the activities of the rabbi trusts that significantly affect the rabbi trust’s economic performance and it has the obligation to absorb losses of the rabbi trusts that could potentially be significant to the rabbi trusts by virtue of its contingent call options on the rabbi trust’s assets in the event of the Company’s bankruptcy. As the primary beneficiary of these VIEs, the Company consolidates the rabbi trust investments. In general, the rabbi trust investments and any earnings received thereon are accumulated, reinvested and used exclusively for trust purposes. These rabbi trust investments consist primarily of cash and cash equivalents, U.S. government agency obligations, equity securities, mutual funds and other exchange-traded funds, and are recorded at fair value in the Company’s consolidated balance sheet. Changes in fair value are recorded in noninterest income in the statements of income. These rabbi trust assets are included within other assets in the Company’s consolidated balance sheet. Tax Credit Investment Through a wholly-owned subsidiary, the Company is the sole member of a tax credit investment company through which it consolidates a community development entity (“CDE”) that is considered a |
Mergers and Acquisitions
Mergers and Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Mergers and Acquisitions | Mergers and Acquisitions During the year ended December 31, 2020, the Company completed an acquisition of an insurance agency for total consideration of $1.4 million in cash. This acquisition was considered to be a business combination and was accounted for using the acquisition method. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed for the business combination described above: Balance (In Thousands) Assets acquired: Customer list intangible $ 1,130 Non-compete intangible 80 Total assets acquired 1,210 Consideration: Total cash paid (1,363) Contingent consideration (293) Total fair value of consideration (1,656) Goodwill $ 446 In connection with this acquisition, the Company recorded a contingent consideration liability related to attainment of revenue targets over a period of time after the acquisition date. The amount of contingent consideration recorded was based upon management’s best estimate of possible outcomes as of the date of acquisition. The Company recorded a contingent consideration liability of $0.3 million, and per the purchase agreement, the payouts ranged from $0 to $0.3 million. During the year ended December 31, 2020, the Company did not have any material charges to expense or payments to adjust the acquisition-related contingent consideration liability recorded. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2020 | |
Debt Securities [Abstract] | |
Securities | Securities Available for Sale Securities The amortized cost, gross unrealized gains and losses, and fair value of available for sale securities as of the dates indicated were as follows: As of December 31, 2020 Amortized Unrealized Unrealized Fair (In Thousands) Debt securities: Government-sponsored residential mortgage-backed securities $ 2,106,658 $ 42,142 $ — $ 2,148,800 Government-sponsored commercial mortgage-backed securities 17,054 27 — 17,081 U.S. Agency bonds 670,468 113 (3,872) 666,709 U.S. Treasury securities 70,106 263 — 70,369 State and municipal bonds and obligations 260,898 20,004 — 280,902 $ 3,125,184 $ 62,549 $ (3,872) $ 3,183,861 As of December 31, 2019 Amortized Unrealized Unrealized Fair (In Thousands) Debt securities: Government-sponsored residential mortgage-backed securities $ 1,151,305 $ 17,208 $ (545) $ 1,167,968 U.S. Treasury securities 50,155 265 — 50,420 State and municipal bonds and obligations 272,582 10,959 (3) 283,538 Qualified zone academy bond 6,155 155 — 6,310 $ 1,480,197 $ 28,587 $ (548) $ 1,508,236 The amortized cost and estimated fair value of available for sale securities by contractual maturities as of December 31, 2020 and 2019 are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without prepayment penalties. The scheduled contractual maturities of available for sale securities as of the dates indicated were as follows: As of December 31, 2020 Due in one year or less Due after one year to five years Due after five to ten years Due after ten years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value (In Thousands) Government-sponsored residential mortgage-backed securities $ — $ — $ 46,293 $ 48,925 $ 96,338 $ 100,278 $ 1,964,027 $ 1,999,597 $ 2,106,658 $ 2,148,800 Government-sponsored commercial mortgage-backed securities — — — — 17,054 17,081 — — 17,054 17,081 U.S. Agency bonds — — 99,772 99,834 570,696 566,875 — — 670,468 666,709 U.S. Treasury securities 50,023 50,251 20,083 20,118 — — — — 70,106 70,369 State and municipal bonds and obligations 406 408 20,511 21,431 74,980 79,635 165,001 179,428 260,898 280,902 Total $ 50,429 $ 50,659 $ 186,659 $ 190,308 $ 759,068 $ 763,869 $ 2,129,028 $ 2,179,025 $ 3,125,184 $ 3,183,861 As of December 31, 2019 Due in one year or less Due after one year to five years Due after five to ten years Due after ten years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value (In Thousands) Government-sponsored residential mortgage-backed securities $ — $ — $ 8,139 $ 8,464 $ 199,428 $ 203,706 $ 943,738 $ 955,798 $ 1,151,305 $ 1,167,968 U.S. Treasury securities 40 40 50,115 50,380 — — — — 50,155 50,420 State and municipal bonds and obligations 381 381 8,889 9,109 77,227 79,504 186,085 194,544 272,582 283,538 Qualified zone academy bond 6,155 6,310 — — — — — — 6,155 6,310 Total $ 6,576 $ 6,731 $ 67,143 $ 67,953 $ 276,655 $ 283,210 $ 1,129,823 $ 1,150,342 $ 1,480,197 $ 1,508,236 Mortgage-backed securities include investments in securities that are insured or guaranteed by Freddie Mac or Fannie Mae. Mortgage-backed securities are purchased to achieve positive interest rate spread with minimal administrative expense, and to lower the Company’s credit risk. Mortgage-backed securities and callable securities are shown at their contractual maturity dates. However, both are expected to have shorter average lives due to expected prepayments and callable features, respectively. Included in the available for sale securities as of December 31, 2020 and 2019 were $710.7 million, and $266.4 million, respectively, of callable securities at fair value. U.S. Treasury securities are purchased for liquidity purposes at zero risk weighting for capital purposes and as collateral for interest rate derivative positions. U.S. Agency bonds include securities issued by Fannie Mae, Freddie Mac, the Federal Home Loan Bank, and the Federal Farm Credit Bureau. State and municipal securities include fixed rate investment grade bonds issued primarily by municipalities in local communities within Massachusetts, and the Commonwealth of Massachusetts. The market value of these securities may be affected by call options, long dated maturities, general market liquidity and credit factors. As of December 31, 2020 and 2019, the Company had no investments in obligations of individual states, counties, or municipalities, which exceeded 10% of equity. Gross realized gains from sales of available for sale securities were $0.3 million, $2.1 million and $0.2 million during the years ended December 31, 2020, 2019, and 2018, respectively. The Company had no significant gross realized losses from sales of securities available for sale during the years ended December 31, 2020, 2019, and 2018. No other-than-temporary impairment ("OTTI") was recorded during the years ended December 31, 2020, 2019, and 2018. Management prepares an estimate of the expected cash flows for investment securities available for sale that potentially may be deemed to have been an OTTI. This estimate begins with the contractual cash flows of the security. This amount is then reduced by an estimate of probable credit losses associated with the security. When estimating the extent of probable losses on the securities, management considers the credit quality and the ability to pay of the underlying issuers. Indicators of diminished credit quality of the issuers include defaults, interest deferrals, or “payments in kind.” Management also considers those factors listed in the Investments – Debt and Equity Securities topic of the FASB ASC when estimating the ultimate realizability of the cash flows for each individual security. The resulting estimate of cash flows after considering credit is then subject to a present value computation using a discount rate equal to the current yield used to accrete the beneficial interest or the effective interest rate implicit in the security at the date of acquisition. If the present value of the estimated cash flows is less than the current amortized cost basis, an OTTI is considered to have occurred and the security is written down to the fair value indicated by the cash flow analysis. As part of the analysis, management considers whether it intends to sell the security or whether it is more than likely that it would be required to sell the security before the expected recovery of its amortized cost basis. Information pertaining to available for sale securities with gross unrealized losses as of December 31, 2020 and 2019, which the Company has not deemed to be OTTI, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: December 31, 2020 Less than 12 Months 12 Months or Longer Total # of Gross Fair Gross Fair Gross Fair (Dollars In Thousands) U.S. Agency bonds 6 $ 3,872 $ 416,824 $ — $ — $ 3,872 $ 416,824 6 $ 3,872 $ 416,824 $ — $ — $ 3,872 $ 416,824 December 31, 2019 Less than 12 Months 12 Months or Longer Total # of Gross Fair Gross Fair Gross Fair (Dollars In Thousands) Government-sponsored residential mortgage-backed securities 1 $ 545 $ 74,550 $ — $ — $ 545 $ 74,550 State and municipal bonds and obligations 2 3 850 — — 3 850 3 $ 548 $ 75,400 $ — $ — $ 548 $ 75,400 The Company does not intend to sell these investments and has determined based upon available evidence that it is more likely than not that the Company will not be required to sell each security before the expected recovery of its amortized cost basis. As a result, the Company does not consider these investments with gross unrealized losses to be OTTI. The Company made this determination by reviewing various qualitative and quantitative factors regarding each investment category, such as current market conditions, extent and nature of changes in fair value, issuer rating changes and trends, and volatility of earnings. As a result of the Company’s review of these qualitative and quantitative factors, the causes of the impairments listed in the tables above by category are as follows as of December 31, 2020 and 2019: • U.S. Agency bonds - The securities with unrealized losses in this portfolio as of December 31, 2020 have contractual terms that generally do not permit the issuer to settle the security at a price less than the current par value of the investment. The decline in market value of these securities is attributable to changes in interest rates and not credit quality. Additionally, these securities are implicitly guaranteed by the U.S. government or one of its agencies. • Government-sponsored residential mortgage-backed securities - The security with an unrealized loss in this portfolio as of December 31, 2019 has contractual terms that generally do not permit the issuer to settle the security at a price less than the current par value of the investment. The decline in market value of this security is attributable to changes in interest rates and not credit quality. The security at a loss position as of December 31, 2019 was subsequently in a gain position as of December 31, 2020. Additionally, these securities are implicitly guaranteed by the U.S. government or one of its agencies. • State and municipal bonds and obligations - The securities with unrealized losses in this portfolio as of December 31, 2019 have contractual terms that generally do not permit the issuer to settle the securities at a price less than the current par value of the investment. The decline in market value of these securities as of December 31, 2019 is attributable to changes in interest rates and not credit quality. These securities were subsequently in a gain position as of December 31, 2020. These bonds are investment grade and are rated AA by Standard and Poor’s. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Loans The following table provides a summary of the Company’s loan portfolio as of the dates indicated: As of December 31, 2020 2019 (In thousands) Commercial and industrial $ 1,995,016 $ 1,642,184 Commercial real estate 3,573,630 3,535,441 Commercial construction 305,708 273,774 Business banking 1,339,164 771,498 Residential real estate 1,370,957 1,428,630 Consumer home equity 868,270 933,088 Other consumer 277,780 402,431 Gross loans before unamortized premiums, unearned discounts and deferred fees 9,730,525 8,987,046 Allowance for credit losses (113,031) (82,297) Unamortized premiums, net of unearned discounts and deferred fees (23,536) (5,565) Loans after the allowance for credit losses, unamortized premiums, unearned discounts and deferred fees $ 9,593,958 $ 8,899,184 There are no other loan categories that exceed 10% of total loans not already reflected in the preceding table. The Company’s lending activities are conducted principally in the New England area with the exception of its Shared National Credit Program (“SNC Program”) portfolio. The Company participates in the SNC Program in an effort to improve its industry and geographical diversification. The SNC Program portfolio is included in the Company’s commercial and industrial, commercial real estate and commercial construction portfolios. The SNC Program portfolio is defined as loan syndications with exposure over $100 million and with three or more lenders participating. Most loans originated by the Company are either collateralized by real estate or other assets or guaranteed by federal and local governmental authorities. The ability and willingness of the single-family residential and consumer borrowers to honor their repayment commitments is generally dependent on the level of overall economic activity within the borrowers’ geographic areas and real estate values. The ability and willingness of commercial real estate, commercial and industrial, and construction loan borrowers to honor their repayment commitments is generally dependent on the health of the real estate economy in the borrowers’ geographic areas and the general economy. Loans Pledged as Collateral The carrying value of loans pledged to secure advances from the Federal Home Loan Bank ("FHLB") of Boston ("FHLBB") were $2.4 billion and $1.5 billion at December 31, 2020 and 2019, respectively. The balance of funds borrowed from the FHLBB were $14.6 million and $19.0 million at December 31, 2020 and 2019, respectively. The carrying value of loans pledged to secure advances from the Federal Reserve Bank (“FRB”) were $0.9 billion and $1.0 billion at December 31, 2020 and 2019, respectively. There were no funds borrowed from the FRB outstanding at December 31, 2020 and 2019. Serviced Loans At December 31, 2020 and 2019, mortgage loans partially or wholly-owned by others and serviced by the Company amounted to approximately $13.5 million and $15.6 million, respectively. Allowance for Loan Losses The allowance for loan losses is established to provide for probable losses incurred in the Company’s loan portfolio at the balance sheet date and is established through a provision for loan losses charged to net income. Charge-offs, net of recoveries, are charged directly to the allowance. Commercial and residential loans are charged-off in the period in which they are deemed uncollectible. Delinquent loans in these product types are subject to ongoing review and analysis to determine if a charge-off in the current period is appropriate. For consumer loans, policies and procedures exist that require charge-off consideration upon a certain triggering event depending on the product type. The following table summarizes the changes in the allowance for loan losses for the periods indicated: For the Year Ended December 31, 2020 2019 2018 (In thousands) Balance at the beginning of period $ 82,297 $ 80,655 $ 74,111 Loans charged off (9,853) (9,499) (12,461) Recoveries 1,787 4,841 3,905 Provision for loan losses 38,800 6,300 15,100 Balance at end of period $ 113,031 $ 82,297 $ 80,655 The following tables summarize changes in the allowance for loan losses by loan category and bifurcates the amount of allowance allocated to each loan category based on collective impairment analysis and loans evaluated individually for impairment: For the Year Ended December 31, 2020 Commercial Commercial Commercial Business Residential Consumer Other Other Total (In thousands) Allowance for loan losses: Beginning balance $ 20,919 $ 34,730 $ 3,424 $ 8,260 $ 6,380 $ 4,027 $ 4,173 $ 384 $ 82,297 Charge-offs (1,770) (24) — (5,147) — (574) (2,338) — (9,853) Recoveries 778 230 — 292 125 153 209 — 1,787 Provision (benefit) 6,690 19,633 1,129 9,747 (70) 138 1,423 110 38,800 Ending balance $ 26,617 $ 54,569 $ 4,553 $ 13,152 $ 6,435 $ 3,744 $ 3,467 $ 494 $ 113,031 Ending balance: individually evaluated for impairment $ 4,555 $ 210 $ — $ 1,435 $ 1,565 $ 289 $ — $ — $ 8,054 Ending balance: acquired with deteriorated credit quality $ 1,283 $ 822 $ — $ — $ 327 $ — $ — $ — $ 2,432 Ending balance: collectively evaluated for impairment $ 20,779 $ 53,537 $ 4,553 $ 11,717 $ 4,543 $ 3,455 $ 3,467 $ 494 $ 102,545 Loans ending balance: Individually evaluated for impairment $ 17,343 $ 4,435 $ — $ 21,901 $ 27,056 $ 4,845 $ 29 $ — $ 75,609 Acquired with deteriorated credit quality 3,432 2,749 — — 3,116 — — — 9,297 Collectively evaluated for impairment 1,974,241 3,566,446 305,708 1,317,263 1,340,785 863,425 277,751 — 9,645,619 Total loans by group $ 1,995,016 $ 3,573,630 $ 305,708 $ 1,339,164 $ 1,370,957 $ 868,270 $ 277,780 $ — $ 9,730,525 For the Year Ended December 31, 2019 Commercial Commercial Commercial Business Residential Consumer Other Other Total (In thousands) Allowance for loan losses: Beginning balance $ 19,321 $ 32,400 $ 4,606 $ 8,167 $ 7,059 $ 4,113 $ 4,600 $ 389 $ 80,655 Charge-offs (1,123) — — (5,974) (66) (205) (2,131) — (9,499) Recoveries 3,748 12 — 604 105 52 320 — 4,841 Provision (benefit) (1,027) 2,318 (1,182) 5,463 (718) 67 1,384 (5) 6,300 Ending balance $ 20,919 $ 34,730 $ 3,424 $ 8,260 $ 6,380 $ 4,027 $ 4,173 $ 384 $ 82,297 Ending balance: individually evaluated for impairment $ 2,337 $ 40 $ — $ 571 $ 1,399 $ 322 $ — $ — $ 4,669 Ending balance: acquired with deteriorated credit quality $ 936 $ — $ — $ — $ 256 $ — $ — $ — $ 1,192 Ending balance: collectively evaluated for impairment $ 17,646 $ 34,690 $ 3,424 $ 7,689 $ 4,725 $ 3,705 $ 4,173 $ 384 $ 76,436 Loans ending balance: Individually evaluated for impairment $ 32,370 $ 7,641 $ — $ 11,658 $ 29,532 $ 6,555 $ — $ — $ 87,756 Acquired with deteriorated credit quality 3,571 6,459 — — 3,421 — — — 13,451 Collectively evaluated for impairment 1,606,243 3,521,341 273,774 759,840 1,395,677 926,533 402,431 — 8,885,839 Total loans by group $ 1,642,184 $ 3,535,441 $ 273,774 $ 771,498 $ 1,428,630 $ 933,088 $ 402,431 $ — $ 8,987,046 For the Year Ended December 31, 2018 Commercial Commercial Commercial Business Residential Consumer Other Other Total (In thousands) Allowance for loan losses: Beginning balance $ 14,892 $ 30,807 $ 5,588 $ 6,497 $ 6,954 $ 4,040 $ 4,751 $ 582 $ 74,111 Charge-offs (3,646) (49) — (6,345) (27) (285) (2,109) — (12,461) Recoveries 2,753 132 — 375 152 60 433 — 3,905 Provision (benefit) 5,322 1,510 (982) 7,640 (20) 298 1,525 (193) 15,100 Ending balance $ 19,321 $ 32,400 $ 4,606 $ 8,167 $ 7,059 $ 4,113 $ 4,600 $ 389 $ 80,655 Ending balance: individually evaluated for impairment $ 1,361 $ 38 $ — $ 154 $ 1,804 $ 337 $ — $ — $ 3,694 Ending balance: acquired with deteriorated credit quality $ 239 $ 181 $ — $ — $ 393 $ — $ — $ — $ 813 Ending balance: collectively evaluated for impairment $ 17,721 $ 32,181 $ 4,606 $ 8,013 $ 4,862 $ 3,776 $ 4,600 $ 389 $ 76,148 Loans ending balance: Individually evaluated for impairment $ 13,954 $ 10,579 $ — $ 7,704 $ 27,713 $ 4,948 $ — $ — $ 64,898 Acquired with deteriorated credit quality 4,904 7,853 — — 4,134 — — — 16,891 Collectively evaluated for impairment 1,639,907 3,192,686 313,209 733,234 1,398,917 944,462 551,799 — 8,774,214 Total loans by group $ 1,658,765 $ 3,211,118 $ 313,209 $ 740,938 $ 1,430,764 $ 949,410 $ 551,799 $ — $ 8,856,003 Management uses a methodology to systematically estimate the amount of loss incurred in the portfolio. Commercial real estate, commercial and industrial, commercial construction and business banking loans are evaluated using a loan rating system, historical losses and other factors which form the basis for estimating incurred losses. Portfolios of more homogeneous populations of loans, including residential mortgages and consumer loans, are analyzed as groups taking into account delinquency ratios, historical loss experience and charge-offs. For the purpose of estimating the allowance for loan losses, management segregates the loan portfolio into the categories noted in the above tables. Each of these loan categories possesses unique risk characteristics such as the purpose of the loan, repayment source, and collateral. These characteristics are considered when determining the appropriate level of the allowance for each category. Some examples of these risk characteristics unique to each loan category include: Commercial Lending Commercial and industrial : The primary risk associated with commercial and industrial loans is the ability of borrowers to achieve business results consistent with those projected at origination. Collateral frequently consists of a first lien position on business assets including, but not limited to accounts receivable, inventory, airplanes and equipment. The primary repayment source is operating cash flow and, secondarily, the liquidation of assets. The Company often obtains personal guarantees from individuals holding material ownership in the borrowing entity. Commercial real estate : Collateral values are established by independent third-party appraisals and evaluations. Primary repayment sources include operating income generated by the real estate, permanent debt refinancing, sale of the real estate and, secondarily, liquidation of the collateral. The Company often obtains personal guarantees from individuals holding material ownership in the borrowing entity. Commercial construction : These loans are generally considered to present a higher degree of risk than other real estate loans and may be affected by a variety of factors, such as adverse changes in interest rates and the borrower’s ability to control costs and adhere to time schedules. Construction loans are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analysis of absorption and lease rates and financial analysis of the developers and property owners. Construction loans are generally based upon estimates of costs and value associated with the completed project. Construction loan repayment is substantially dependent on the ability of the borrower to complete the project and obtain permanent financing. Business banking : These loans are typically secured by all business assets or commercial real estate. Business banking originations include traditionally underwritten loans as well as partially automated scored loans. Business banking scored loans are determined by utilizing the Company’s proprietary decision matrix that has a number of quantitative factors including, but not limited to, a guarantor’s credit score, industry risk, and time in business. The Company also engages in Small Business Association (“SBA”) lending, both in the business banking and commercial banking divisions. The SBA guarantees reduce the Company’s loss due to default and are considered a credit enhancement to the loan structure. Residential Lending Residential real estate : These loans are made to borrowers who demonstrate the ability to repay principal and interest on a monthly basis. Underwriting considerations include, among others, income sources and their reliability, willingness to repay as evidenced by credit repayment history, financial resources (including cash reserves) and the value of the collateral. The Company maintains policy standards for minimum credit score and cash reserves and maximum loan to value consistent with a “prime” portfolio. Collateral consists of mortgage liens on 1-4 family residential dwellings. The Company does not originate or purchase sub-prime or other high-risk loans. Residential loans are originated either for sale to investors or retained in the Company’s loan portfolio. Decisions about whether to sell or retain residential loans are made based on the interest rate characteristics, pricing for loans in the secondary mortgage market, competitive factors and the Company’s capital needs. Consumer Lending Consumer home equity : Home equity lines of credit are granted for ten years with monthly interest-only repayment requirements. Full principal repayment is required at the end of the ten-year draw period. Home equity loans are term loans that require the monthly payment of principal and interest such that the loan will be fully amortized at maturity. Underwriting considerations are materially consistent with those utilized in residential real estate. Collateral consists of a senior or subordinate lien on owner-occupied residential property. Other consumer : The Company’s policy and underwriting in this category, which is comprised primarily of airplane and automobile loans, include the following factors, among others: income sources and reliability, credit histories, term of repayment, and collateral value, as applicable. These are typically granted on an unsecured basis, with the exception of airplane and automobile loans. Credit Quality Commercial Lending Credit Quality The Company monitors credit quality indicators and utilizes portfolio scorecards to assess the risk of its commercial portfolio. Specifically, the company utilizes a 15-point credit risk-rating system to manage risk and identify potential problem loans. Prior to December 31, 2020, the Company utilized a 12-point credit risk-rating system to manage risk and identify potential problem loans. In the fourth quarter of 2020, the Company realigned its credit risk-rating system, transitioning to a 15-point credit risk-rating system. The expansion from the prior 12-point scale will provide more refinement in the pass grade categories; new pass grades are 0-10. There are no changes to non-pass categories, which continue to align with regulatory guidelines and are found in ratings: special mention (11), substandard (12), doubtful (13) and loss (14). The Company believes that increasing granularity of the risk rating system allows for more robust portfolio management and increased precision and effectiveness of credit risk identification. Under both point systems, risk-rating assignments are based upon a number of quantitative and qualitative factors that are under continual review. Factors include cash flow, collateral coverage, liquidity, leverage, position within the industry, internal controls and management, financial reporting, and other considerations. The risk-rating categories under the new 15-point credit risk-rating system are defined as follows: 0 Risk Rating- Unrated Certain segments of the portfolios are not rated. These segments include airplane loans, business banking scored loan products, and other commercial loans managed by exception. Loans within this unrated loan segment are monitored by delinquency status; and for lines of credit greater than $100,000 in exposure, an annual review is conducted. The Company supplements performance data with current business credit scores for the business banking portfolio on a quarterly basis. Unrated commercial and business banking loans are generally restricted to commercial exposure less than $1 million. Loans included in this category have qualification requirements that include risk rating of 10 or better at time of recommendation for unrated status, acceptable management of deposit accounts, and no known negative changes in management, operations or financial performance. For purposes of estimating the allowance for loan losses, unrated loans are considered in the same manner as pass rated loans. 1-10 Risk Rating – Pass Loans with a risk rating of 1-10 are classified as “Pass” and are comprised of loans that range from “substantially risk free” which indicates borrowers of unquestioned credit standing, well-established national companies with a very strong financial condition, and loans fully secured by policy conforming cash levels, through “low pass” which indicates acceptable rated loans that may be experiencing weak cash flow, impending lease rollover or minor liquidity concerns. 11 Risk Rating – Special Mention (Potential Weakness) Loans to borrowers in this category exhibit potential weaknesses or downward trends deserving management’s close attention. While potentially weak, no loss of principal or interest is envisioned. Included in this category are borrowers who are performing as agreed, are weak when compared to industry standards, may be experiencing an interim loss and may be in declining industries. An element of asset quality, financial flexibility or management is below average. The Company does not consider borrowers within this category as new business prospects. Borrowers rated special mention may find it difficult to obtain alternative financing from traditional bank sources. 12 Risk Rating – Substandard (Well-Defined Weakness) Loans with a risk-rating of 12 exhibit well-defined weaknesses that, if not corrected, may jeopardize the orderly liquidation of the debt. A loan is classified as substandard if it is inadequately protected by the repayment capacity of the obligor or by the collateral pledged. Specifically, repayment under market rates and terms, or by the requirements under the existing loan documents, is in jeopardy, but no loss of principal or interest is envisioned. There is a possibility that a partial loss of principal and/or interest will occur in the future if the deficiencies are not corrected. Loss potential, while existing in the aggregate portfolio of substandard assets does not have to exist in individual assets classified as substandard. Non-accrual is possible, but not mandatory, in this class. 13 Risk Rating – Doubtful (Loss Probable) Loans classified as doubtful have comparable weaknesses as found in the loans classified as substandard, with the added provision that such weaknesses make collection of the debt in full (based on currently existing facts, conditions and values) highly questionable and improbable. Serious problems exist such that a partial loss of principal is likely. The probability of loss exists, however, because of reasonable specific pending factors that may work to strengthen the credit, estimated losses are deferred until a more exact status can be determined. Specific reserves will be the amount identified after specific review. Non-accrual is mandatory in this class. 14 Risk Rating – Loss Loans to borrowers in this category are deemed incapable of repayment. Loans to such borrowers are considered uncollectible and of such little value that continuance as active assets of the Company is not warranted. This classification does not mean that the loans have no recovery or salvage value, but rather, it is not practical or desirable to defer writing off these assets even though partial recovery may occur in the future. Loans in this category have a recorded investment of $0 at the time of the downgrade. The credit quality of the commercial loan portfolio is actively monitored and supported by a comprehensive credit approval process; and all large dollar transactions are sent for approval to a committee of seasoned business line and credit professionals. Risk ratings are periodically reviewed and the Company maintains an independent credit risk review function that reports directly to the Risk Management Committee of the Board of Directors. Credits that demonstrate significant deterioration in credit quality are transferred to a specialized group of experienced officers for individual attention. The following tables detail the internal risk-rating categories for the Company’s commercial and industrial, commercial real estate, commercial construction and business banking portfolios: As of December 31, 2020 Category Commercial and Commercial Commercial Business Total Unrated $ 655,346 $ 6,585 $ — $ 918,921 $ 1,580,852 Pass 1,199,522 3,256,697 280,792 336,657 5,073,668 Special mention 78,117 134,562 10,330 57,092 280,101 Substandard 47,525 173,308 14,586 24,788 260,207 Doubtful 14,506 2,478 — 1,706 18,690 Loss — — — — — Total $ 1,995,016 $ 3,573,630 $ 305,708 $ 1,339,164 $ 7,213,518 As of December 31, 2019 Category Commercial and Commercial Commercial Business Total Unrated $ 150,226 $ 48,266 $ 331 $ 445,201 $ 644,024 Pass 1,405,902 3,436,267 260,615 315,194 5,417,978 Special mention 24,171 28,606 9,438 2,006 64,221 Substandard 42,894 21,635 3,390 8,207 76,126 Doubtful 18,991 667 — 890 20,548 Loss — — — — — Total $ 1,642,184 $ 3,535,441 $ 273,774 $ 771,498 $ 6,222,897 Paycheck Protection Program (“PPP”) loans are included within the unrated category of the commercial and industrial and business banking portfolios in the table above. Commercial and industrial PPP and business banking PPP loans amounted to $568.8 million and $457.4 million, respectively, at December 31, 2020. The Company does not have an allowance for loan losses for PPP loans as they are 100% guaranteed by the SBA. Residential and Consumer Lending Credit Quality For the Company’s residential and consumer portfolios, the quality of the loan is best indicated by the repayment performance of an individual borrower. Updated appraisals, broker opinions of value and other collateral valuation methods are employed in the residential and consumer portfolios, typically for credits that are deteriorating. Delinquency status is determined using payment performance, while accrual status may be determined using a combination of payment performance, expected borrower viability and collateral value. Delinquent consumer loans are handled by a team of seasoned collection specialists. Asset Quality In response to the novel coronavirus ("COVID-19") pandemic, the Company has granted loan modifications to allow deferral of payments for borrowers negatively impacted by the COVID-19 pandemic. Modifications granted to customers allowed for full payment deferrals (principal and interest) or deferral of only principal payments. The balance of loans which underwent a modification and have not yet resumed payment as of December 31, 2020 was $332.7 million. The Company defines a modified loan to have resumed payment if it is one month past the modification end date and not more than 30 days past due. These modifications with active deferrals met the criteria of either Section 4013 of the CARES Act or the Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised) and therefore are not deemed TDRs. Additionally, loans that are performing in accordance with the contractual terms of the modification are not reflected as being past due and therefore are not impacting non-accrual or delinquency totals as of December 31, 2020. The Company continued to accrue interest on these COVID-19 modified loans and evaluated the deferred interest for collectability as of December 31, 2020. The Company manages its loan portfolio with careful monitoring. As a general rule, loans more than 90 days past due with respect to principal and interest are classified as non-accrual loans. Exceptions may be made if management believes that collateral held by the Company is clearly sufficient and in full satisfaction of both principal and interest, or the loan is accounted for as a PCI loan. Therefore, as permitted by banking regulations, certain consumer loans past due 90 days or more may continue to accrue interest. The Company may also use discretion regarding other loans over 90 days delinquent if the loan is well secured and in the process of collection. Non-accrual loans and loans that are more than 90 days past due but still accruing interest are considered non-performing loans. Non-accrual loans may be returned to an accrual status when principal and interest payments are no longer delinquent, and the risk characteristics of the loan have improved to the extent that there no longer exists a concern as to the collectability of principal and interest. Loans are considered past due based upon the number of days delinquent according to their contractual terms. Specifically, non-accrual residential loans that have been restructured must perform for a period of six months before being considered for accrual status. A loan is expected to remain on non-accrual status until it becomes current with respect to principal and interest, the loan is liquidated, or the loan is determined to be uncollectible and is charged-off against the allowance for loan losses. The following is a summary pertaining to the breakdown of the Company’s non-accrual loans: As of December 31, 2020 2019 (In thousands) Commercial and industrial $ 11,714 $ 21,471 Commercial real estate 915 4,120 Commercial construction — — Business banking 17,430 8,502 Residential real estate 6,815 5,598 Consumer home equity 3,602 2,137 Other consumer 529 623 Total non-accrual loans $ 41,005 $ 42,451 The following tables show the age analysis of past due loans as of the dates indicated: As of December 31, 2020 30-59 60-89 90 or More Total Past Current Total Recorded (In thousands) Commercial and industrial $ 4 $ 268 $ 1,924 $ 2,196 $ 1,992,820 $ 1,995,016 $ 848 Commercial real estate — 556 1,545 2,101 3,571,529 3,573,630 1,111 Commercial construction — — — — 305,708 305,708 — Business banking 5,279 3,311 10,196 18,786 1,320,378 1,339,164 — Residential real estate 9,184 2,517 4,904 16,605 1,354,352 1,370,957 279 Consumer home equity 1,806 364 3,035 5,205 863,065 868,270 9 Other consumer 1,978 234 517 2,729 275,051 277,780 — Total $ 18,251 $ 7,250 $ 22,121 $ 47,622 $ 9,682,903 $ 9,730,525 $ 2,247 As of December 31, 2019 30-59 60-89 90 or More Total Past Current Total Recorded (In thousands) Commercial and industrial $ 1,407 $ — $ 963 $ 2,370 $ 1,639,814 $ 1,642,184 $ — Commercial real estate 1,290 100 1,856 3,246 3,532,195 3,535,441 1,315 Commercial construction — — — — 273,774 273,774 — Business banking 3,031 763 6,095 9,889 761,609 771,498 — Residential real estate 14,030 2,563 3,030 19,623 1,409,007 1,428,630 — Consumer home equity 2,497 430 1,636 4,563 928,525 933,088 9 Other consumer 3,451 514 579 4,544 397,887 402,431 — Total $ 25,706 $ 4,370 $ 14,159 $ 44,235 $ 8,942,811 $ 8,987,046 $ 1,324 In the normal course of business, the Company may become aware of possible credit problems in which borrowers exhibit potential for the inability to comply with the contractual terms of their loans, but which currently do not yet meet the criteria for classification as non-performing loans. However, based upon the Company’s past experiences, some of these loans with potential weaknesses will ultimately be restructured or placed in non-accrual status. Troubled Debt Restructurings (“TDR”) In cases where a borrower experiences financial difficulty and the Company makes certain concessionary modifications to contractual terms, the loan is classified as a troubled debt restructured loan. The objective is to aid in the resolution of non-performing loans by modifying the contractual obligation to avoid the possibility of foreclosure. All TDR loans are considered impaired and therefore are subject to a specific review for impairment loss. The amount of impairment loss, if any, is recorded as a specific loss allocation to each individual loan in the allowance for loan losses. Commercial loans and residential loans that have been classified as TDRs and which subsequently default are reviewed to determine if the loan should be deemed collateral dependent. In such an instance, any shortfall between the value of the collateral and the book value of the loan is determined by measuring the recorded investment in the loan against the fair value of the collateral less costs to sell. The Company’s policy is to have any TDR loans which are on non-accrual status prior to being modified remain on non-accrual status for approximately six months subsequent to being modified before management considers its return to accrual status. If the TDR loan is on accrual status prior to being modified, it is reviewed to determine if the modified loan should remain on accrual status. The following table shows the TDR loans on accrual and non-accrual status as of the dates indicated: As of December 31, 2020 TDRs on Accrual Status TDRs on Non-accrual Status Total TDRs Number of Loans Balance of Number of Balance of Number of Balance of (Dollars in thousands) Commercial and industrial 1 $ 5,628 7 $ 6,819 8 $ 12,447 Commercial real estate 1 3,521 1 480 2 4,001 Business banking 6 4,471 6 722 12 5,193 Residential real estate 146 23,416 27 3,273 173 26,689 Consumer home equity 91 4,030 12 815 103 4,845 Other consumer 3 29 — — 3 29 Total 248 $ 41,095 53 $ 12,109 301 $ 53,204 As of December 31, 2019 TDRs on Accrual Status TDRs on Non-accrual Status Total TDRs Number of Loans Balance of Number of Loans Balance of Number of Loans Balance of (Dollars in thousands) Commercial and industrial 4 $ 10,899 14 $ 19,781 18 $ 30,680 Commercial real estate 1 3,520 3 3,338 4 6,858 Business banking 2 3,156 1 204 3 3,360 Residential real estate 152 25,093 27 3,977 179 29,070 Consumer home equity 89 5,955 5 600 94 6,555 Total 248 $ 48,623 50 $ 27,900 298 $ 76,523 The amount of specific reserve associated with the TDRs was $3.5 million and $3.2 million at December 31, 2020 and 2019, respectively. The amount of additional commitments to lend to borrowers who have been a party to a TDR was $0 and $2.5 million at December 31, 2020 and 2019, respectively. The following tables show the modifications which occurred during the periods and the change in the recorded investment subsequent to the modifications occurring: For the Year Ended December 31, 2020 2019 2018 Number Pre- Post- Number Pre- Post- Number Pre- Post- (Dollars in thousands) Commercial and industrial 1 $ 140 $ 140 16 $ 18,912 $ 19,212 7 $ 5,926 $ 6,786 Commercial real estate 1 506 506 2 3,277 3,277 — — — Business banking 6 1,642 1,642 2 3,184 3,184 — — — Residential real estate 6 920 920 11 2,659 2,696 14 2,235 2,278 Consumer home equity 22 969 973 9 2,053 2,392 10 1,122 1,128 Other consumer 4 58 58 — — — — — — Total 40 $ 4,235 $ 4,239 40 $ 30,085 $ 30,761 31 $ 9,283 $ 10,192 (1) The post-modification balances represent the balance of the loan on the date of modification. These amounts may show an increase when modification includes capitalization of interest. At December 31, 2020 and 2019, the outstanding recorded investment of loans that were new to TDR during the period was $3.9 million and $36.2 million, respectively. The following table shows the Company’s post-modification balance of TDRs listed by type of modification during the periods indicated: For the Year Ended December 31, 2020 2019 2018 (In thousands) Adjusted interest rate and extended maturity $ — $ 1,513 $ 1,338 Adjusted interest rate and principal deferred — 39 715 Adjusted interest rate — 3,352 676 Interest only/principal deferred 1,305 2,769 5,926 Extended maturity 35 — — Extended maturity and interest only/principal deferred 427 47 677 Additional underwriting- increased exposure — 10,822 — Principal and interest deferred 422 — — Court-ordered concession 1,995 355 — Subordination — 11,032 — Other 55 832 860 Total $ 4,239 $ 30,761 $ 10,192 The following table shows the loans that have been modified during the prior 12 months which have subsequently defaulted during the periods indicated. The Company considers a loan to have defaulted when it reaches 90 days past due or is transferred to non-accrual: For the Year Ended December 31, 2020 2019 2018 Number of Recorded Number of Recorded Number of Recorded (Dollars in thousands) Troubled debt restructurings that subsequently defaulted (1): Commercial and industrial — $ — 10 $ 18,808 — $ — Commercial real estate — — 2 3,125 — — Residential real estate — — — — 1 144 Consumer home equity 1 40 — — 1 116 Total 1 $ 40 12 $ 21,933 2 $ 260 (1) This table does not reflect any TDRs which were fully charged off, paid off, or otherwise settled during the period. During the years ended December 31, 2020, 2019, and 2018 the amounts charged-off on TDRs modified in the prior 12 months were $0.2 million, $0 and $1.5 million respectively. Impaire |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment The following table summarizes the Company’s premises and equipment: As of December 31, Estimated 2020 2019 Useful Life (In thousands) (In years) Premises and equipment used in operations: Land $ 7,410 $ 7,410 N/A Buildings 58,112 57,075 5-30 Equipment 55,919 57,720 3-5 Leasehold improvements 34,561 35,447 5-25 Total cost 156,002 157,652 Accumulated depreciation (107,334) (101,085) Premises and equipment used in operations, net 48,668 56,567 Premises and equipment held for sale (1) 730 886 Net premises and equipment $ 49,398 $ 57,453 (1) The Company classified a branch location as held for sale The Company had depreciation expense related to premises and equipment of $13.0 million, $15.9 million, and $16.2 million during the years ended December 31, 2020, 2019, and 2018, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain office space and equipment under various non-cancelable operating leases. These leases have original terms ranging from 1 year to 25 years. Operating lease liabilities and ROU assets are recognized at the lease commencement date based upon the present value of the future minimum lease payments over the lease term. Operating lease liabilities are recorded within other liabilities and ROU assets are recorded within other assets in the Company’s consolidated balance sheet. As of December 31, 2020, the Company had the following related to operating leases: As of December 31, 2020 (In thousands) Right-of-use assets $ 81,596 Lease liabilities 85,330 The following table is a summary of the Company’s components of net lease cost for the year ended December 31, 2020: For the Year Ended December 31, 2020 (In thousands) Operating lease cost $ 14,402 Finance lease cost 71 Variable lease cost 1,982 Total lease cost $ 16,455 During the year ended December 31, 2020, the Company made $14.2 million in cash payments for operating and finance leases. The rent expense for operating leases during the years ended December 31, 2019 and 2018 amounted to $16.2 million and $14.3 million, respectively. The rent expense for equipment operating leases amounted to $0.7 million for both the years ended December 31, 2019 and 2018. Finance leases are not material. Finance lease liabilities are recorded within other liabilities and finance ROU assets are recorded within other assets in the Company’s consolidated balance sheet. Supplemental balance sheet information related to operating leases as of December 31, 2020 is as follows: As of December 31, 2020 Weighted-average remaining lease term (in years) 8.50 Weighted-average discount rate 2.65 % The following table sets forth the undiscounted cash flows of base rent related to operating leases outstanding at December 31, 2020 with payments scheduled over the next five years and thereafter, including a reconciliation to the operating lease liability recognized in other liabilities in the Company’s consolidated balance sheet: Year (In thousands) 2021 $ 13,748 2022 12,733 2023 12,190 2024 11,430 2025 10,575 Thereafter 35,070 Total minimum lease payments 95,746 Less: amount representing interest 10,416 Present value of future minimum lease payments $ 85,330 |
Leases | Leases The Company leases certain office space and equipment under various non-cancelable operating leases. These leases have original terms ranging from 1 year to 25 years. Operating lease liabilities and ROU assets are recognized at the lease commencement date based upon the present value of the future minimum lease payments over the lease term. Operating lease liabilities are recorded within other liabilities and ROU assets are recorded within other assets in the Company’s consolidated balance sheet. As of December 31, 2020, the Company had the following related to operating leases: As of December 31, 2020 (In thousands) Right-of-use assets $ 81,596 Lease liabilities 85,330 The following table is a summary of the Company’s components of net lease cost for the year ended December 31, 2020: For the Year Ended December 31, 2020 (In thousands) Operating lease cost $ 14,402 Finance lease cost 71 Variable lease cost 1,982 Total lease cost $ 16,455 During the year ended December 31, 2020, the Company made $14.2 million in cash payments for operating and finance leases. The rent expense for operating leases during the years ended December 31, 2019 and 2018 amounted to $16.2 million and $14.3 million, respectively. The rent expense for equipment operating leases amounted to $0.7 million for both the years ended December 31, 2019 and 2018. Finance leases are not material. Finance lease liabilities are recorded within other liabilities and finance ROU assets are recorded within other assets in the Company’s consolidated balance sheet. Supplemental balance sheet information related to operating leases as of December 31, 2020 is as follows: As of December 31, 2020 Weighted-average remaining lease term (in years) 8.50 Weighted-average discount rate 2.65 % The following table sets forth the undiscounted cash flows of base rent related to operating leases outstanding at December 31, 2020 with payments scheduled over the next five years and thereafter, including a reconciliation to the operating lease liability recognized in other liabilities in the Company’s consolidated balance sheet: Year (In thousands) 2021 $ 13,748 2022 12,733 2023 12,190 2024 11,430 2025 10,575 Thereafter 35,070 Total minimum lease payments 95,746 Less: amount representing interest 10,416 Present value of future minimum lease payments $ 85,330 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | Goodwill and Other Intangibles The following tables set forth the carrying amount of goodwill and other intangible assets, net of accumulated amortization by reporting unit at the dates indicated below: As of December 31, 2020 Banking Insurance Net (In thousands) Balances not subject to amortization Goodwill $ 298,611 $ 70,866 $ 369,477 Balances subject to amortization Insurance agency — 6,899 6,899 Core deposits 158 — 158 Total other intangible assets 158 6,899 7,057 Total goodwill and other intangible assets $ 298,769 $ 77,765 $ 376,534 As of December 31, 2019 Banking Insurance Net (In thousands) Balances not subject to amortization Goodwill $ 298,611 $ 70,420 $ 369,031 Balances subject to amortization Insurance agency — 7,949 7,949 Core deposits 754 — 754 Total other intangible assets 754 7,949 8,703 Total goodwill and other intangible assets $ 299,365 $ 78,369 $ 377,734 The changes in the carrying value of goodwill for the periods indicated were as follows: For the Year Ended December 31, 2020 Banking Insurance Net (In thousands) Balance at beginning of year $ 298,611 $ 70,420 $ 369,031 Goodwill recorded during the year — 446 446 Goodwill disposed of during the year — — — Balance at end of year $ 298,611 $ 70,866 $ 369,477 For the Year Ended December 31, 2019 Banking Insurance Net (In thousands) Balance at beginning of year $ 298,611 $ 70,420 $ 369,031 Goodwill recorded during the year — — — Goodwill disposed of during the year — — — Balance at end of year $ 298,611 $ 70,420 $ 369,031 The gross carrying amount and accumulated amortization of other intangible assets were as follows at the dates indicated: As of December 31, 2020 2019 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net (In thousands) Insurance agency $ 28,515 $ (21,616) $ 6,899 $ 27,305 $ (19,356) $ 7,949 Core deposits 6,579 (6,421) 158 6,579 (5,825) 754 Total $ 35,094 $ (28,037) $ 7,057 $ 33,884 $ (25,181) $ 8,703 The Company quantitatively assesses goodwill for impairment at the reporting unit level on an annual basis or sooner, if an event occurs or circumstances change which might indicate that the fair value of a reporting unit is below its carrying amount. The quantitative assessment was most recently performed as of September 30, 2020, and during the fourth quarter there were no events or changes in circumstances not already considered in the Company’s annual assessment. The Company considered the economic conditions, including the potential impact of the COVID-19 pandemic in the goodwill impairment test and determined there was no indication of impairment related to goodwill during the year ended December 31, 2020. Additionally, the Company did not record any impairment charges during the years ended December 31, 2019 and 2018. The amortization expense of the Company’s intangible assets were $2.9 million, $3.5 million, and $3.9 million during the years ended December 31, 2020, 2019, and 2018, respectively. The total weighted-average original amortization period for intangible assets is ten years. The Company has estimated the remaining useful life of its insurance agency intangible assets, comprising primarily of customer lists and non-compete agreements, and its core deposit intangible assets to have a weighted-average of five years and one year, respectively. The estimated amortization expense for each of the five succeeding years and thereafter is as follows: Year (In thousands) 2021 $ 2,125 2022 1,606 2023 1,174 2024 878 2025 603 Thereafter 671 Total amortization expense $ 7,057 Other intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The Company considered the impact of the COVID-19 pandemic as it pertains to these intangible assets and determined that there was no indication of impairment related to other intangible assets during the year ended December 31, 2020. Additionally, the Company did not record any impairment charges during the years ended December 31, 2019 and 2018. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2020 | |
Banking and Thrift, Interest [Abstract] | |
Deposits | Deposits In order to manage reserve requirements at the Federal Reserve Bank of Boston, the Company has established overnight programs which sweep certain demand and interest checking accounts into money market investment accounts. Reported deposit balances do not reflect the impact of the overnight sweep programs. At December 31, 2020 and 2019, the Company swept $6.6 billion, and $4.7 billion, respectively, from demand deposit and interest checking balances into money market investments for reserve requirement purposes. Other time deposits of $100,000 and greater, including certificates of deposits of $100,000 and greater, at December 31, 2020 and 2019 totaled $115.3 million and $157.6 million, respectively. The following table summarizes the certificate of deposits by maturity at December 31, 2020: Balance Percentage of Total Year (Dollars in thousands) 2021 $ 222,103 85.8 % 2022 19,240 7.4 % 2023 7,485 2.9 % 2024 6,538 2.5 % 2025 3,392 1.3 % Thereafter 101 0.1 % Total certificates of deposit $ 258,859 100.0 % Interest expense related to deposits held by the Company for the years ended December 31, 2020, 2019, and 2018, was $11.3 million, $27.3 million and $17.4 million, respectively. At December 31, 2020 and 2019, securities with a carrying value of $31.3 million and $21.9 million, respectively, were pledged to secure public deposits and for other purposes required by law. At December 31, 2020, securities pledged as collateral for deposits included Eastern Wealth Management cash accounts and municipal housing authority accounts. At December 31, 2019, securities pledged as collateral for deposits included a debtor in possession account that exceeded the FDIC insurance limit, Eastern Wealth Management cash accounts and municipal housing authority accounts. |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2020 | |
Federal Home Loan Banks [Abstract] | |
Borrowed Funds | Borrowed Funds Borrowed funds were comprised of the following: As of December 31, 2020 2019 (In thousands) Federal funds purchased $ — $ 201,082 FHLB advances 14,624 18,964 Escrow deposits of borrowers 13,425 15,349 Interest rate swap collateral funds — — Total borrowed funds $ 28,049 $ 235,395 At December 31, 2020 and 2019, the Company had available and unused borrowing capacity of approximately $503.5 million and $637.0 million, respectively, at the Federal Reserve Discount Window. In addition, at December 31, 2020, the Company had $1.0 billion in PPP loans that could have been pledged to the Paycheck Protection Program Liquidity Facility. Interest expense on borrowed funds was as follows: For the Year Ended December 31, 2020 2019 2018 (In thousands) Federal funds purchased $ 570 $ 3,976 $ 3,384 Federal Home Loan Bank advances 190 2,406 3,885 Escrow deposits of borrowers 2 4 3 Interest rate swap collateral funds — 66 466 Total interest expense on borrowed funds $ 762 $ 6,452 $ 7,738 A summary of FHLB of Boston advances, by maturities were as follows: As of December 31, 2020 2019 Amount Weighted Average Amount Weighted Average (Dollars in thousands) Within one year $ — — % $ 4,946 1.81 % Over one year to three years 1,412 0.22 % 193 0.17 % Over three years to five years 2,309 1.31 % 1,587 0.35 % Over five years 10,903 1.22 % 12,238 1.39 % Total Federal Home Loan Bank advances $ 14,624 1.14 % $ 18,964 1.40 % At December 31, 2020, advances from the FHLB of Boston were secured by stock in FHLB of Boston, residential real estate loans and commercial real estate loans. At December 31, 2019, advances from the FHLB of Boston were secured by stock in the FHLB of Boston, residential real estate loans, commercial real estate loans and government-sponsored residential mortgage-backed securities. The collateral value of residential real estate and commercial real estate loans securing these advances was $913.7 million and $741.5 million, respectively, at December 31, 2020, and $952.5 million and $150.1 million, respectively, at December 31, 2019. The collateral value of government-sponsored residential mortgage-backed securities was $801.1 million at December 31, 2019. At December 31, 2020 and 2019, the Bank had available and unused borrowing capacity of approximately $1.6 billion and $1.8 billion, respectively, with the FHLB of Boston. As a member of the FHLB of Boston, the Company is required to hold FHLB of Boston stock. At December 31, 2020 and 2019, the Company had investments in the FHLB of Boston of $8.8 million and $9.0 million, respectively. At its discretion, the FHLB of Boston may declare dividends on the stock. Included in other noninterest income in the consolidated statements of income are dividends received of $0.4 million, $0.8 million, and $1.2 million during the years ended December 31, 2020, 2019, and 2018, respectively. |
Earnings Per Share ("EPS")
Earnings Per Share ("EPS") | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share ("EPS") | Earnings Per Share ( “ EPS ” ) Basic EPS represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the year. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common shares (such as stock options) were exercised or converted into additional common shares that would then share in the earnings of the entity. Diluted EPS is computed by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding for the year, plus the effect of potential dilutive common share equivalents computed using the treasury stock method. There were no securities that had a dilutive effect during the year ended December 31, 2020, and therefore the weighted-average common shares outstanding used to calculate both basic and diluted EPS are the same. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. Earnings per share data is not applicable for the years ended December 31, 2019 and 2018 as the Company had no shares outstanding. For the Year Ended December 31, 2020 (Dollars in thousands, except per share data) Net income applicable to common shares $ 22,738 Average number of common shares outstanding 186,663,593 Less: Average unallocated ESOP shares (14,851,058) Average number of common shares outstanding used to calculate basic earnings per common share 171,812,535 Common stock equivalents — Average number of common shares outstanding used to calculate diluted earnings per common share 171,812,535 Earnings per common share Basic and diluted $ 0.13 All unallocated ESOP shares have been excluded from the calculation of basic and diluted EPS. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table sets forth information regarding the Company’s tax provision and applicable tax rates for the periods indicated: For the Year Ended December 31, 2020 2019 2018 (Dollars in thousands) Combined federal and state income tax provisions $ 13,163 $ 39,481 $ 34,884 Effective income tax rates 36.7 % 22.6 % 22.1 % The Company’s provision for income taxes was $13.2 million, $39.5 million and $34.9 million for the years ended December 31, 2020, 2019, and 2018, respectively. The Company’s effective tax rate was 36.7% and is higher than the effective tax rate of 22.6% and 22.1% for the prior years ending December 31, 2019, and 2018. The decrease in income tax expense and the increase in the effective tax rate during the year ended December 31, 2020 compared to the year ended December 31, 2019, was primarily due to lower income before income tax expense, increasing the impact on the effective rate related to favorable permanent differences, including investment tax credits and tax-exempt income. The reduction in income tax expense related to lower income before income tax expense is partially offset by the establishment of a $12.0 million valuation allowance against the Company’s charitable contribution carryover deferred tax asset. The provision for income taxes is comprised of the following components: For the Year Ended December 31, 2020 2019 2018 (In thousands) Current tax expense: Federal $ 23,002 $ 26,365 $ 26,793 State 10,520 11,740 12,969 Total current tax expense 33,522 38,105 39,762 Deferred tax expense (benefit): Federal (13,736) 782 (1,360) State (6,623) 594 (3,518) Total deferred tax (benefit) expense (20,359) 1,376 (4,878) Total income tax expense $ 13,163 $ 39,481 $ 34,884 A reconciliation of the U.S. federal statutory rate to the Company’s effective income tax rate is detailed below: For the Year Ended December 31, 2020 2019 2018 (Dollars in thousands) Income tax expense at statutory rate $ 7,539 21.00 % $ 36,662 21.00 % $ 33,098 21.00 % Increase (decrease) resulting from: State income tax, net of federal tax benefit 43 0.12 % 9,744 5.58 % 7,466 4.74 % Valuation allowance 12,000 33.43 % — — % — — % Amortization of qualified low-income housing investments 4,977 13.86 % 4,782 2.74 % 2,750 1.74 % Tax credits (7,085) (19.73) % (7,570) (4.34) % (3,154) (2.00) % Tax-exempt income (4,091) (11.40) % (3,923) (2.25) % (4,269) (2.71) % Other, net (220) (0.61) % (214) (0.12) % (1,007) (0.64) % Actual income tax expense $ 13,163 36.67 % 39,481 22.61 % 34,884 22.13 % Significant components of the Company’s deferred tax assets and deferred tax liabilities are presented below: As of December 31, 2020 2019 (In thousands) Deferred tax assets: Allowance for loan losses $ 34,397 $ 25,641 Leases 24,098 — Charitable contribution limitation carryover 22,942 — Pension and deferred compensation plans — 25,455 Accrued expenses 5,047 5,854 Fixed assets 4,183 3,515 Loan basis difference fair value adjustments 461 1,949 PPP loans fee income 5,969 — Other 967 1,516 Total deferred tax assets before valuation allowance 98,064 63,930 Valuation allowance (12,000) — Total deferred tax assets 86,064 63,930 Deferred tax liabilities: Amortization of intangibles 13,585 13,400 Unrealized gain on available for sale securities 13,005 6,241 Partnerships 1,448 3,967 Cash flow hedges 11,658 6,109 Trading securities 5,110 3,316 Lease obligation 23,048 — Employee benefits 1,613 — Other 3,368 2,690 Total deferred tax liabilities 72,835 35,723 Net deferred income tax assets $ 13,229 $ 28,207 The Company assesses the realizability of deferred tax assets and whether it is more likely than not that all or a portion of the deferred tax assets will be realized. The Company considers projections of future taxable income during the periods in which deferred tax assets and liabilities are scheduled to reverse. Additionally, in determining the availability of operating loss carrybacks and other tax attributes, both projected future taxable income and tax planning strategies are considered in making this assessment. As of December 31, 2020, the Company established a valuation allowance of $12.0 million related to the $91.3 million stock donation and the $3.7 million cash contribution to the Foundation. Based upon the level of available historical taxable income and projections for future taxable income over the periods which the deferred tax assets are realizable, the Company believes it is more likely than not that the Company will realize the remainder of the net deferred tax asset of $13.2 million at December 31, 2020. Management has performed an evaluation of the Company’s uncertain tax positions and determined that a liability for unrecognized tax benefits at December 31, 2020 and 2019 was not needed. The Company had no net operating loss carryforwards for federal or state income tax purposes at December 31, 2020 and 2019, respectively. At December 31, 2020, the Bank’s federal pre-1988 reserve, for which no federal income tax provision has been made, was approximately $20.8 million. Under current federal law, these reserves are subject to recapture into taxable income, should the Company make non-dividend distributions, make distributions in excess of earnings and profits retained, as defined, or cease to maintain a banking type charter. A deferred tax liability is not recognized for the base year amount unless it becomes apparent that those temporary differences will reverse into taxable income in the foreseeable future. No deferred tax liability has been established as these two events are not expected to occur in the foreseeable future. The Company’s primary banking activities are in the states of Massachusetts, New Hampshire and Rhode Island; however the Company also files additional state corporate income and/or franchise tax returns in states in which the Company has nexus. The methods of filing, and the methods for calculating taxable and apportionable income, vary depending upon the laws of the taxing jurisdiction. The Company is subject to routine audits of its tax returns by the Internal Revenue Service and various state taxing authorities. The Company is no longer subject to federal and state income tax examinations by tax authorities for years before 2017. |
Low Income Housing Tax Credits
Low Income Housing Tax Credits and Other Tax Credit Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments in Affordable Housing Projects [Abstract] | |
Low Income Housing Tax Credits and Other Tax Credit Investments | Low Income Housing Tax Credits and Other Tax Credit Investments The Community Reinvestment Act (“CRA”) encourages banks to meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate income. The Company has primarily invested in separate LIHTC projects, also referred to as qualified affordable housing projects, which provide the Company with tax credits and operating loss tax benefits over a period of approximately 15 years. The return on these investments is generally generated through tax credits and tax losses. In addition to LIHTC projects, the Company invests in new market tax credit projects that qualify for CRA credits and eligible projects that qualify for renewable energy and historic tax credits. As of December 31, 2020 and 2019, the Company had $59.8 million and $46.1 million, respectively, in tax credit investments that were included in other assets in the consolidated balance sheets. When permissible, the Company accounts for its investments in LIHTC projects using the proportional amortization method, under which it amortizes the initial cost of the investment in proportion to the amount of the tax credits and other tax benefits received and recognizes that amortization as a component of income tax expense. The net investment performance in the housing projects is included in other assets. The Company will continue to use the proportional amortization method on any new qualifying LIHTC investments. The following table presents the Company’s investments in LIHTC projects using the proportional amortization method as of the dates indicated: As of December 31, 2020 2019 (In thousands) Investments in qualified affordable housing partnerships, net $ 58,504 $ 37,665 Commitments to fund qualified affordable housing projects included in recorded investment noted above 31,487 18,042 The following table presents additional information related to the Company’s investments in LIHTC projects for the periods indicated: For the Year Ended December 31, 2020 2019 2018 (In thousands) Tax credits and other tax benefits recognized $ 5,033 $ 5,962 $ 2,891 Amortization expense included in income tax expense 4,977 4,782 2,750 The Company is the sole member of a tax credit investment company through which it consolidates a VIE. The VIE made an equity investment to fund the construction of solar energy facilities in a manner to qualify for renewable energy investment tax credits. This equity investment is included in other assets on the consolidated balance sheet and totaled $0 and $4.2 million at December 31, 2020 and 2019, respectively. The minority interest associated with this investment was immaterial at December 31, 2020 and 2019. The Company accounts for certain other investments in renewable energy projects using the equity method of accounting. These investments in renewable energy projects are included in other assets on the consolidated balance sheet and totaled $1.2 million and $4.1 million at December 31, 2020 and 2019, respectively. There was $1.7 million and $0 in outstanding commitments relating to these investments as of December 31, 2020 and 2019, respectively In reviewing its tax credit equity investments for impairment, the Company identified an immaterial correction to the investment balances related to prior periods. In the year ended December 31, 2020, the Company wrote off $7.6 million of the tax credit equity investment balances as a component of noninterest expense and other assets to reflect the remaining benefits from these investments. Management evaluated the correction in relation to the current year, which is when the correction was recorded, as well as the preceding periods in which it originated. Management believes this correction is immaterial to the previous consolidated quarterly and annual financial statements. |
Minimum Regulatory Capital Requ
Minimum Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2020 | |
Banking and Thrift, Interest [Abstract] | |
Minimum Regulatory Capital Requirements | Minimum Regulatory Capital Requirements The Company is subject to various regulatory capital requirements administered by federal banking agencies, including U.S. Basel III. 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. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgements by the regulators about components, risk weightings, and other factors. Quantitative measures established by the regulators to ensure capital adequacy require the Company to maintain minimum capital amounts and ratios. All banking companies are required to have core capital (“Tier 1”) of at least 6% of risk-weighted assets, total capital of at least 8% of risk-weighted assets and a minimum of Tier 1 leverage ratio of 4% of adjusted average assets. As of December 31, 2020 and 2019, the Company was categorized as “well-capitalized” based on the regulatory framework for prompt corrective action. To be categorized as well-capitalized, the Company must maintain (1) a minimum of total risk-based capital ratio of 10%; (2) a minimum of Tier 1 risk-based capital ratio of 8%; (3) a minimum of common equity Tier 1 capital ratio of 6.5%; and (4) a minimum of Tier 1 leverage ratio of 5%. Management believes that the Company met all capital adequacy requirements to which it is subject to as of December 31, 2020 and 2019. There have been no conditions or events that management believes would cause a change in the Company’s categorization. The Company’s actual capital amounts and ratios are presented in the following table: Actual For Capital Adequacy To Be Well- Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2020 Total regulatory capital (to risk-weighted assets) $ 3,135,445 29.61 % $ 847,069 ≥8 % $ 1,058,836 ≥10 % Common equity Tier 1 capital (to risk-weighted assets) 3,013,079 28.46 476,476 4.5 688,243 6.5 Tier 1 capital (to risk-weighted assets) 3,013,079 28.46 635,302 6 847,069 8 Tier I capital (to average assets) 3,013,079 19.53 617,049 4 771,312 5 As of December 31, 2019 Total regulatory capital (to risk-weighted assets) $ 1,365,391 13.56 % $ 805,394 ≥8 % 1,006,742 ≥10 % Common equity Tier 1 capital (to risk-weighted assets) 1,274,174 12.66 453,034 4.5 654,382 6.5 Tier 1 capital (to risk-weighted assets) 1,274,174 12.66 604,045 6 805,394 8 Tier 1 capital (to average assets) 1,274,174 11.47 444,279 4 555,348 5 The Company is subject to various capital requirements in connection with seller/servicer agreements that have been entered into with secondary market investors. Failure to maintain minimum capital requirements could result in an inability to originate and service loans for the respective investor and, therefore, could have a direct material effect on the Company’s financial statements. Management believes that the Company met all capital requirements in connection with seller/servicer agreements as of December 31, 2020 and 2019. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits Conversion of Defined Benefit Pension Plan and Benefit Equalization Plan to Cash Balance Plan Design Effective November 1, 2020, the Qualified Defined Benefit Pension Plan ("Defined Benefit Plan") and the Non-Qualified Benefit Equalization Plan ("BEP") sponsored by the Company were amended to convert the plans from a traditional final average earnings plan design to a cash balance plan design. Benefits earned under the final average earnings plan design were frozen at October 31, 2020. Starting November 1, 2020, future benefits are earned under the cash balance plan design. Under the cash balance plan design, hypothetical account balances are established for each participant and pension benefits are generally stated as the lump sum amount in that hypothetical account. Contribution credits equal to a percentage of a participant’s annual compensation (if the participant works at least 1,000 hours during the year) and interest credits equal to the greater of the 30-Year Treasury rate for September preceding the current plan year or 3.5% are added to a participant’s account each year. For employees hired prior to November 1, 2020, annual contribution credits will generally increase as the participant remains employed with the Company. Employees hired on and after November 1, 2020 will receive annual contribution credits equal to 5% of annual compensation, with no future increases. Notwithstanding the preceding sentence, since a cash balance plan is a defined benefit plan, the annual retirement benefit payable at normal retirement (age 65) is an annuity, which is the actuarial equivalent of the participant’s account balance under the cash balance plan design, plus their frozen benefit under the final average earnings plan design. However, under the Defined Benefit Plan, participants may elect, with the consent of their spouses if they are married, to have the benefits distributed as a lump sum rather than an annuity. The lump sum is equal to the sum of the actuarial equivalent of their frozen benefit under the final average earnings plan design, plus their cash balance account. Under the BEP, benefits are generally only payable as a lump sum, which is equal to the sum of the actuarial equivalent of their frozen benefit under the final average earnings plan design, plus their cash balance account. Pension Plans The Company provides pension benefits for its employees using a noncontributory, defined benefit plan, through membership in the Savings Banks Employees Retirement Association ("SBERA"). The Company’s employees become eligible after attaining age 21 and completing one year of service. Under the final average earnings plan design, benefits became fully vested after three years of eligible service for individuals employed on or before October 31, 1989. For individuals employed subsequent to October 31, 1989 and who were already in the Defined Benefit Plan as of November 1, 2020, benefits became fully vested after five years of eligible service. Under the new cash balance plan design and for employees who were not already in the Defined Benefit Plan as of November 1, 2020, benefits become fully vested after three years of eligible service. The Company’s annual contribution to the plan is based upon standards established by the Pension Protection Act. The contribution is based on an actuarial method intended to provide not only for benefits attributable to service to date, but also for those expected to be earned in the future. SBERA offers a common and collective trust as the underlying investment structure for pension plans participating in the association. The target allocation mix for the common and collective trust portfolio calls for an equity-based investment deployment range of 47% to 61% of total common and collective trust portfolio assets. The remainder of the common and collective trust’s portfolio is allocated to fixed income securities with a target range of 24% to 38% and other investments, including global asset allocation and hedge funds, from 9% to 21%. The Trustees of SBERA, through the Association’s Investment Committee, select investment managers for the common and collective trust portfolio. A professional investment advisory firm is retained by the Investment Committee to provide allocation analysis, performance measurement and to assist with manager searches. The overall investment objective is to diversify investments across a spectrum of investment types to limit risks from large market swings. The Defined Benefit Plan has a plan year end of October 31. The Company has an unfunded Defined Benefit Supplemental Executive Retirement Plan ("DB SERP") that provides certain retired and currently employed officers with defined pension benefits in excess of qualified plan limits imposed by U.S. federal tax law. The DB SERP has a plan year end of December 31. The Company has an unfunded Benefit Equalization Plan ("BEP") to provide retirement benefits to certain employees whose retirement benefits under the Defined Benefit Plan are limited per the Internal Revenue Code. The BEP has a plan year end of October 31. The Company also has an unfunded Outside Directors’ Retainer Continuance Plan ("ODRCP") that provides pension benefits to outside directors who retire from service. The Outside Directors’ Retainer Continuance Plan has a plan year end of December 31. Effective December 31, 2020, the Company closed the ODRCP to new participants and froze benefit accruals for active participants. Obligations and Funded Status The funded status and amounts recognized in the Company’s Consolidated Financial Statements for the Defined Benefit Plan, the DB SERP, the BEP and the ODRCP are set forth in the following table: As of and for the Year Ended December 31, 2020 2019 2018 (In thousands) Change in benefit obligation: Benefit obligation at beginning of the year $ 396,769 $ 302,317 $ 328,409 Service cost 25,970 18,926 23,256 Interest cost 9,657 10,996 11,170 Amendments (133,439) — — Actuarial loss (gain) 78,095 74,828 (46,932) Benefits paid (15,905) (10,298) (13,586) Benefit obligation at end of the year $ 361,147 $ 396,769 $ 302,317 Change in plan assets: Fair value of plan assets at beginning of year $ 378,879 $ 305,154 $ 335,369 Actual return (loss) on plan assets 48,895 60,723 (18,918) Employer contribution 37,773 23,300 2,289 Benefits paid (15,904) (10,298) (13,586) Fair value of plan assets at end of year 449,643 378,879 305,154 Overfunded (underfunded) status $ 88,496 $ (17,890) $ 2,837 Reconciliation of funding status: Past service credit (cost) $ 131,482 $ (25) $ (69) Unrecognized net loss (161,045) (113,022) (82,542) Prepaid benefit cost 118,059 95,157 85,448 Overfunded (underfunded) status $ 88,496 $ (17,890) $ 2,837 Accumulated benefit obligation $ 361,147 $ 290,429 $ 223,865 Amounts recognized in accumulated other comprehensive income (“AOCI”), net of tax: Unrecognized past service credit (cost) $ 94,522 $ (18) $ (50) Unrecognized net loss (115,775) (81,251) (59,339) Net amount $ (21,253) $ (81,269) $ (59,389) Amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit cost over the next fiscal year: Unrecognized past service (credit) cost $ (8,469) $ 18 $ 32 Unrecognized net loss 10,171 6,790 5,207 Net amount $ 1,702 $ 6,808 $ 5,239 During the year ended December 31, 2020, the Company made contributions to the Defined Benefit Plan of $32.5 million. In accordance with the Pension Protection Act, the Company was not required to make any contributions the Defined Benefit Plan for the plan year beginning November 1, 2020. Actuarial Assumptions The assumptions used in determining the benefit obligations at December 31, 2020 and 2019 were as follows: DB Plan BEP DB SERP ODRCP As of December 31, As of December 31, As of December 31, As of December 31, 2020 2019 2020 2019 2020 2019 2020 2019 Discount rate 2.26 % 3.16 % 1.77 % 3.15 % 1.63 % 2.72 % 1.81 % 2.86 % Rate of increase in compensation levels 5.25 % 5.25 % 5.25 % 5.25 % — % — % — % 3.00 % Interest rate credit for determining projected cash balance 3.50 % N/A 3.50 % N/A N/A N/A N/A N/A The assumptions used in determining the net periodic benefit cost for the years ended December 31, 2020, 2019, and 2018 were as follows: DB Plan For the Year Ended December 31, 2020 2019 2018 Discount rate - benefit cost 3.16 % 4.25 % 3.50 % Rate of compensation increase 5.25 % 5.25 % 5.25 % Expected rate of return on plan assets 7.50 % 7.50 % 7.75 % BEP For the Year Ended December 31, 2020 2019 2018 Discount rate - benefit cost 3.15 % 4.25 % 3.50 % Rate of compensation increase 5.25 % 5.25 % 5.25 % Expected rate of return on plan assets — % — % — % DB SERP For the Year Ended December 31, 2020 2019 2018 Discount rate - benefit cost 2.72 % 4.25 % 3.50 % Rate of compensation increase — % — % — % Expected rate of return on plan assets — % — % — % ODRCP For the Year Ended December 31, 2020 2019 2018 Discount rate - benefit cost 2.86 % 4.25 % 3.50 % Rate of compensation increase 3.00 % 3.00 % 3.00 % Expected rate of return on plan assets — % — % — % In general, the Company has selected its assumptions with respect to the expected long-term rate of return based on prevailing yields on high quality fixed income investments increased by a premium for equity return expectations. During the year ended December 31, 2018, upon the hiring of a new actuarial firm, the Company refined its methodology for determining the discount rate used in calculating the benefit obligation and the benefit cost for all of its defined benefit plans. This change was effective in calculating the benefit obligations as of December 31, 2018 and the benefit costs beginning during the year ended December 31, 2019. The Company now uses the spot rate approach whereby the individual spot rates on the FTSE above-median yield curve are applied to each corresponding year’s projected cash flow used to measure the respective plan’s service cost and interest cost. The Company believes that the new methodology more accurately determines each plan’s service cost and interest cost for the fiscal year versus using the single equivalent discount rate by strengthening the correlation between the projected cash flows and the corresponding discount rate used to measure those components of net periodic pension cost. The Company owns a percentage of the SBERA defined benefit common collective trust. Based upon this ownership percentage, plan assets managed by SBERA on behalf of the Company amounted to $449.6 million and $378.9 million at December 31, 2020 and 2019, respectively. Investments held by the common collective trust include Level 1, 2 and 3 assets such as: collective funds, equity securities, mutual funds, hedge funds and short-term investments. The Fair Value Measurements and Disclosures Topic of the FASB ASC stipulates that an asset’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. As such, the Company classifies its interest in the common collective trust as a Level 3 asset. The table below presents a reconciliation of the Company’s interest in the SBERA common collective trust during the years indicated: For the Year Ended December 31, 2020 2019 (In Thousands) Balance at beginning of year $ 378,879 $ 305,154 Net realized and unrealized gains and (losses) 48,895 60,723 Contributions 32,515 20,000 Benefits paid (10,646) (6,998) Balance at end of year $ 449,643 $ 378,879 Components of Net Periodic Benefit Cost The components of net pension expense for the plans for the periods indicated are as follows: For the Year Ended December 31, 2020 2019 2018 (In Thousands) Components of net periodic benefit cost: Service cost $ 25,970 $ 18,926 $ 23,258 Interest cost 9,657 10,996 11,170 Expected return on plan assets (29,610) (23,617) (25,335) Past service (credit) cost (1,931) 44 44 Recognized net actuarial loss 10,787 7,242 7,621 Net periodic benefit cost $ 14,873 $ 13,591 $ 16,758 Service costs for the Defined Benefit Plan, the BEP, and the DB SERP are recognized within salaries and employee benefits in the statement of income. Service costs for the ODRCP are recognized within professional services in the statement of income. The remaining components of net periodic benefit cost are recognized in other noninterest expense in the statement of income. Benefits expected to be paid The following table summarizes estimated benefits to be paid from the Defined Benefit Plan and BEP for the plan years beginning on November 1, and the DB SERP and ODRCP for the plan years beginning January 1: Year (In thousands) 2021 $ 36,510 2022 29,553 2023 32,753 2024 31,131 2025 34,029 In aggregate for 2026-2030 176,164 Employee Tax Deferred Incentive Plan The Company has an employee tax deferred incentive plan, otherwise known as a 401(k) plan, under which the Company makes voluntary contributions within certain limitations. All employees who meet specified age and length of service requirements are eligible to participate in the 401(k) plan. The amount contributed by the Company is included in salaries and employee benefits expense. The amounts contributed to the plan for the years ended December 31, 2020, 2019, and 2018, were $4.4 million, $4.2 million and $3.9 million, respectively. Employee Stock Ownership Plan As part of the IPO completed on October 14, 2020, the Company established a tax-qualified Employee Stock Ownership Plan to provide eligible employees the opportunity to own Company shares. The ESOP borrowed $149.4 million from the Company to purchase 14,940,652 common shares during the IPO and in the open market. The loan is payable in annual installments over 30 years at an interest rate equal to the Prime rate as published in the The Wall Street Journal . As the loan is repaid to the Company, shares are released and allocated proportionally to eligible participants on the basis of each participant’s proportional share of compensation relative to the compensation of all participants. The unallocated ESOP shares are pledged as collateral on the loan. The Company accounts for its ESOP in accordance with FASB ASC 718-40, Compensation – Stock Compensation . Under this guidance, unreleased shares are deducted from shareholders’ equity as unearned ESOP shares in the accompanying consolidated balance sheets. The Company recognizes compensation expense equal to the fair value of the ESOP shares during the periods in which they are committed to be released. To the extent that the fair value of the Company’s ESOP shares differs from the cost of such shares, the difference will be credited or debited to equity. As the loan is internally leveraged, the loan receivable from the ESOP to the Company is not reported as an asset nor is the debt of the ESOP shown as a liability in the Company’s consolidated balance sheets. Dividends on unallocated shares are used to pay the ESOP debt. Total compensation expense recognized in connection with the ESOP was $2.4 million for the year ended December 31, 2020. The ESOP made an upfront principal payment of $1.0 million on the loan in 2020 which resulted in the release and allocation of 63,690 shares and compensation expense of $0.9 million. The Company recorded additional compensation expense of $1.5 million related to the accrual of the annual loan payment and 104,464 shares committed to be allocated. The number of shares committed to be released per year is 501,429 through 2049 and 335,533 in the year 2050. The following table presents share information held by the ESOP: As of December 31, 2020 (Dollars in thousands) Allocated shares 63,690 Shares committed to be allocated 104,464 Unallocated shares 14,772,498 Total shares 14,940,652 Fair value of unallocated shares $ 240,939 Defined Contribution Supplemental Executive Retirement Plan The Company’s DC SERP, a defined contribution supplemental executive retirement plan, allows certain senior officers to earn benefits calculated as a percentage of their compensation. The participant benefits are adjusted based upon a deemed investment performance of measurement funds selected by the participant. These measurement funds are for tracking purposes and are used only to track the performance of a mutual fund, market index, savings instrument, or other designated investment or portfolio of investments. The Company recorded expense related to the DC SERP of $0.9 million, $1.3 million and $1.4 million in the years ended December 31, 2020, 2019, and 2018, respectively. The total amount due to participants under this plan was included in other liabilities on the Company’s balance sheet and amounted to $27.6 million and $24.5 million at December 31, 2020 and 2019, respectively. Deferred Compensation Plans The Company sponsors three plans which allow for elective compensation deferrals by directors, former trustees, and certain senior-level employees. Each plan allows its participants to designate deemed investments for deferred amounts from certain options which include diversified choices, such as exchange traded funds and mutual funds. Portfolios with various risk profiles are available to participants with the approval of the Compensation Committee of the Board of Directors. The Company purchases and sells investments which track the deemed investment choices, so that it has available funds to meet its payment liabilities. Deferred amounts, adjusted for deemed investment performance, are paid at the time of a participant designated date or event, such as separation from service, death, or disability. The total amounts due to participants under the three plans were included in other liabilities on the Company’s balance sheet and amounted to $28.9 million and $21.0 million at December 31, 2020 and 2019, respectively. Rabbi Trust Variable Interest Entity The Company established a rabbi trust to meet its obligations under certain executive non-qualified retirement benefits and deferred compensation plans and to mitigate the expense volatility of the aforementioned retirement plans. The rabbi trust is considered a VIE as the equity investment at risk is insufficient to permit the trust to finance its activities without additional subordinated financial support from the Company. The Company is considered the primary beneficiary of the rabbi trust as it has the power to direct the activities of the rabbi trust that significantly affect the rabbi trust’s economic performance and it has the obligation to absorb losses of the rabbi trust that could potentially be significant to the rabbi trust by virtue of its contingent call options on the rabbi trust’s assets in the event of the Company’s bankruptcy. As the primary beneficiary of this VIE, the Company consolidates the rabbi trust investments. These rabbi trust investments consist primarily of cash and cash equivalents, U.S. government agency obligations, equity securities, mutual funds and other exchange-traded funds, and are recorded at fair value in other assets on the Company’s consolidated balance sheet. Changes in fair value are recorded in noninterest income. Assets held in rabbi trust accounts by plan type, at fair value, were as follows: As of December 31, 2020 2019 (In thousands) DB SERP $ 22,616 $ 20,003 BEP 7,198 5,934 ODRCP 4,251 3,575 DC SERP 28,134 24,564 Deferred compensation plans 29,484 23,936 Total rabbi trust assets $ 91,683 $ 78,012 Investments in rabbi trust accounts are recorded at fair value within the Company’s consolidated balance sheet with changes in fair value recorded through noninterest income. The following tables present the book value, net unrealized gain or loss, and market value of assets held in rabbi trust accounts by asset type for each of the plans included in the rabbi trust: DB SERP As of December 31, 2020 As of December 31, 2019 Book Value Unrealized Fair Value Book Value Unrealized Fair Value Asset Type (In thousands) Cash and cash equivalents $ 1,208 $ — $ 1,208 $ 821 $ — $ 821 Equities 10,822 5,508 16,330 10,711 3,909 14,620 Fixed income 4,854 224 5,078 4,450 112 4,562 Total assets $ 16,884 $ 5,732 $ 22,616 $ 15,982 $0 $ 4,021 $0 $ 20,003 BEP As of December 31, 2020 As of December 31, 2019 Book Value Unrealized Fair Value Book Value Unrealized Fair Value Asset Type (In thousands) Cash and cash equivalents $ 320 $ — $ 320 $ 158 $ — $ 158 Equities 3,504 1,730 5,234 3,276 1,224 4,500 Fixed income 1,565 79 1,644 1,244 32 1,276 Total assets $ 5,389 $ 1,809 $ 7,198 $ 4,678 $ 1,256 $0 $ 5,934 ODRCP As of December 31, 2020 As of December 31, 2019 Book Value Unrealized Fair Value Book Value Unrealized Fair Value Asset Type (In thousands) Cash and cash equivalents $ 230 $ — $ 230 $ 171 $ — $ 171 Equities 1,985 959 2,944 1,841 665 2,506 Fixed income 1,022 55 1,077 877 21 898 Total assets $ 3,237 $ 1,014 $ 4,251 $ 2,889 $0 $ 686 $0 $ 3,575 DC SERP As of December 31, 2020 As of December 31, 2019 Book Value Unrealized Fair Value Book Value Unrealized Fair Value Asset Type (In thousands) Cash and cash equivalents $ 240 $ — $ 240 $ 1,540 $ — $ 1,540 Equities 20,966 6,928 27,894 15,691 4,676 20,367 Fixed income — — — 2,619 38 2,657 Total assets $ 21,206 $ 6,928 $ 28,134 $ 19,850 $ 4,714 $ 24,564 Deferred Compensation Plans As of December 31, 2020 As of December 31, 2019 Book Value Unrealized Fair Value Book Value Unrealized Fair Value Asset Type (In thousands) Cash and cash equivalents $ 3,159 $ — $ 3,159 $ 2,738 $ — $ 2,738 Equities 21,958 4,367 26,325 14,135 2,385 16,520 Fixed income — — — 4,580 98 4,678 Total assets $ 25,117 $ 4,367 $ 29,484 $ 21,453 $ 2,483 $ 23,936 The Company had equity securities held in rabbi trust accounts of $78.7 million and $58.5 million as of December 31, 2020 and 2019, respectively. The following table presents a summary of the gains and losses related to equity securities for the periods indicated: For the Year Ended December 31, 2020 2019 (In thousands) Net gains recognized on equity securities $ 11,756 $ 11,283 Less: net gains realized on sale of equity securities (5,122) (1,774) Unrealized gains on equity securities held at end of period $ 6,634 $ 9,509 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Financial Instruments with Off-Balance Sheet Risk In order to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates, the Company is party to financial instruments with off-balance sheet risk in the normal course of business. These financial instruments include commitments to extend credit, standby letters of credit, and forward commitments to sell loans, all of which involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in each particular class of financial instruments. Substantially all of the Company’s commitments to extend credit, which normally have fixed expiration dates or termination clauses, are contingent upon customers maintaining specific credit standards at the time of loan funding. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. In the event the customer does not perform in accordance with terms of agreement with the third party, the Company would be required to fund the commitment. The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount of the commitment. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. For forward loan sale commitments, the contract or notional amount does not represent exposure to credit loss. The Company does not sell loans with recourse. The following table summarizes the above financial instruments as of the dates indicated: As of December 31, 2020 2019 (In Thousands) Commitments to extend credit $ 3,818,952 $ 3,606,182 Standby letters of credit 60,221 60,124 Forward commitments to sell loans 41,160 21,357 Other Contingencies The Company has been named a defendant in various legal proceedings arising in the normal course of business. In the opinion of management, based on the advice of legal counsel, the ultimate resolution of these proceedings will not have a material effect on the Company’s Consolidated Financial Statements. As a member of the Federal Reserve System, the Bank is required to maintain certain reserves of vault cash and/or deposits with the Federal Reserve Bank of Boston. However, in response to the COVID-19 pandemic, the Federal Reserve temporarily eliminated reserve requirements and therefore there was no minimum reserve requirement as of December 31, 2020. The amount of the Bank’s reserve requirement included in cash and cash equivalents was approximately $3.7 million as of December 31, 2019. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative financial instruments to manage the Company’s interest rate risk resulting from the differences in the amount, timing, and duration of known or expected cash receipts and known or expected cash payments. Additionally, the Company enters into interest rate derivatives and foreign exchange contracts to accommodate the business requirements of its customers (“customer-related positions”) and risk participation agreements entered into as financial guarantees of performance on customer-related interest rate swap derivatives. Derivative instruments are carried at fair value in the Company’s financial statements. The accounting for changes in the fair value of a derivative instrument is dependent upon whether or not the instrument qualifies as a hedge for accounting purposes, and further, by the type of hedging relationship. By using derivatives, the Company is exposed to credit risk to the extent that counterparties to the derivative contracts do not perform as required. Should a counterparty fail to perform under the terms of a derivative contract, the Company’s credit exposure on interest rate swaps is limited to the net positive fair value and accrued interest of all swaps with each counterparty plus any initial margin collateral posted. The Company seeks to minimize counterparty credit risk through credit approvals, limits, monitoring procedures, and obtaining collateral, where appropriate. As such, management believes the risk of incurring credit losses on derivative contracts with those counterparties is remote. Interest Rate Positions An interest rate swap is an agreement whereby one party agrees to pay a floating rate of interest on a notional principal amount in exchange for receiving a fixed rate of interest on the same notional amount, for a predetermined period of time, from a second party. The amounts relating to the notional principal amount are not actually exchanged. The Company may enter into interest rate swaps in which they pay floating and receive fixed interest in order to manage its interest rate risk exposure to the variability in interest cash flows on certain floating-rate commercial loans. For interest rate swaps that are accounted for as cash flow hedges, changes in fair value are included in other comprehensive income and reclassified into net income in the same period or periods during which the hedged forecasted transaction affects net income. As of December 31, 2020, the Company does not have any active interest rate swaps which qualify as cash flow hedges for accounting purposes. The following table reflects the Company’s derivative positions as of December 31, 2019 for interest rate swaps which qualify as cash flow hedges for accounting purposes. As of December 31, 2019 Weighted Average Rate Notional Weighted Average Current Receive Fixed Fair Value (1) (In Thousands) (In Years) (In Thousands) Interest rate swaps on loans $ 2,120,000 2.16 1.74 % 2.11 % $ (321) Total $ 2,120,000 $ (321) (1) Fair value included net accrued interest receivable of $0.4 million at December 31, 2019. Due to the phase-out, and eventual discontinuation, of the LIBOR, central clearinghouses have begun to transition to alternative rates for valuation purposes. As of October 16, 2020, the Company changed its valuation methodology to reflect changes made by the Chicago Mercantile Exchange (“CME”), through which the Company clears derivative financial instruments that are eligible for clearing. The changes from the CME changed the discounting methodology and interest calculation of cash margin from OIS to SOFR for U.S. dollar cleared interest rate swaps. Accordingly, the improvements to the Company’s valuation methodology will result in valuations for cleared interest rate swaps that better reflect prices obtainable in the markets in which the Company transacts. The changes in valuation methodology are applied prospectively as a change in accounting estimate and are immaterial to the Company’s financial statements. The following table presents the pre-tax impact of terminated cash flow hedges on AOCI. The balance of terminated cash flow hedges in AOCI will be amortized into earnings through January 2023. Year Ended December 31, 2020 2019 (Dollars in Thousands) Unrealized gains on terminated hedges included in AOCI — January 1 $ — $ — Unrealized gains on terminated hedges arising during the period 57,362 — Reclassification adjustments for amortization of unrealized (gains) into net interest income (15,889) — Unrealized gains on terminated hedges included in AOCI — December 31 $ 41,473 $ — The Company expects approximately $31.2 million to be reclassified into interest income from other comprehensive income related to the Company’s terminated cash flow hedges in the next 12 months as of December 31, 2020. Customer-Related Positions Interest rate swaps offered to commercial customers do not qualify as hedges for accounting purposes. These swaps allow the Company to retain variable rate commercial loans while allowing the commercial customer to synthetically fix the loan rate by entering into a variable-to-fixed rate interest rate swap. The Company believes that its exposure to commercial customer derivatives is limited to non-performance by either the customer or the dealer because these contracts are simultaneously matched at inception with an offsetting dealer transaction. Risk participation agreements are entered into as financial guarantees of performance on interest rate swap derivatives. The purchased (asset) or sold (liability) guarantee allow the Company to participate-out (fee paid) or participate-in (fee received) the risk associated with certain derivative positions executed with the borrower by the lead bank in a customer-related interest rate swap derivative. Foreign exchange contracts consist of those offered to commercial customers and those entered into to hedge the Company’s foreign currency risk associated with a foreign-currency loan. Neither qualifies as a hedge for accounting purposes. These commercial customer derivatives are offset with matching derivatives with correspondent-bank counterparties in order to minimize foreign exchange rate risk to the Company. Exposure with respect to these derivatives is largely limited to non-performance by either the customer or the other counterparty. Neither the Company nor the correspondent-bank counterparty are required to post collateral but each has established foreign-currency transaction limits to manage the exposure risk. The Company requires its customers to post collateral to minimize risk exposure. The following tables present the Company’s customer-related derivative positions as of the dates indicated below for those derivatives not designated as hedging: As of December 31, 2020 Number of Positions Total Notional (Dollars in thousands) Interest rate swaps 576 $ 3,652,385 Risk participation agreements 70 287,732 Foreign exchange contracts: Matched commercial customer book 40 4,242 Foreign currency loan 3 10,798 As of December 31, 2019 Number of Positions Total Notional (Dollars in thousands) Interest rate swaps 603 $ 3,749,474 Risk participation agreements 67 299,576 Foreign exchange contracts: Matched commercial customer book 62 29,990 Foreign currency loan 23 7,310 The level of interest rate swaps, risk participation agreements and foreign currency exchange contracts at the end of each period noted above was commensurate with the activity throughout those periods. The table below presents the fair value of the Company’s derivative financial instruments, as well as their classification on the balance sheet for the periods indicated: Asset Derivatives Liability Derivatives Balance Sheet Fair Value at December 31, Fair Value at December 31, Balance Sheet Fair Value at December 31, Fair Value at December 31, (In thousands) Derivatives designated as hedging instruments Interest rate swaps Other assets $ — $ — Other liabilities $ — $ 321 Derivatives not designated as hedging instruments Customer-related positions: Interest rate swaps Other assets $ 141,822 $ 64,463 Other liabilities $ 42,600 $ 18,057 Risk participation agreements Other assets 722 482 Other liabilities 1,230 606 Foreign currency exchange contracts — matched customer book Other assets 90 469 Other liabilities 77 428 Foreign currency exchange contracts — foreign currency loan Other assets 9 — Other liabilities 69 203 $ 142,643 $ 65,414 $ 43,976 $ 19,294 Total $ 142,643 $ 65,414 $ 43,976 $ 19,615 The table below presents the net effect of the Company’s derivative financial instruments on the consolidated income statements as well as the effect of the Company’s derivative financial instruments included in other comprehensive income (“OCI”) as follows: For the Year Ended December 31, 2020 2019 2018 (In thousands) Derivatives designated as hedges: Gain in OCI on derivatives $ 46,871 $ 20,275 $ 5,354 Gain reclassified from OCI into interest income (effective portion) $ 27,131 $ 2,698 $ 1,198 Gain recognized in income on derivatives (ineffective portion and amount excluded from effectiveness test) Interest income $ — $ — $ — Other income — — — Total $ — $ — $ — Derivatives not designated as hedges: Customer-related positions: Gain (loss) recognized in interest rate swap income $ (3,812) $ (2,833) $ (550) Gain (loss) recognized in interest rate swap income for risk participation agreements (384) (83) (35) Gain (loss) recognized in other income for foreign currency exchange contracts: Matched commercial customer book (28) (47) 36 Foreign currency loan 143 (203) — Total (loss) for derivatives not designated as hedges $ (4,081) $ (3,166) $ (549) The Company has agreements with its customer-related interest rate swap derivative counterparties that contain a provision whereby if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company also has agreements with certain of its customer-related interest rate swap derivative correspondent-bank counterparties that contain a provision whereby if the Company fails to maintain its status as a well-capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements. The Company’s exposure related to its customer-related interest rate swap derivative consists of exposure on cleared derivative transactions and exposure on non-cleared derivative transactions. Cleared derivative transactions are with CME and exposure is settled to market daily, with additional credit exposure related to initial-margin collateral pledged to CME at trade execution. At December 31, 2020 and 2019, the Company’s exposure to CME for settled variation margin in excess of the customer-related interest rate swap termination values was less than $0.1 million, and $1.5 million, respectively. In addition, at December 31, 2020 and 2019, the Company had posted initial-margin collateral in the form of a U.S. Treasury note amounting to $60.4 million and $27.6 million, respectively, to CME for these derivatives. The cash and U.S. Treasury note were considered restricted assets and were included in cash and due from banks and in available for sale securities, respectively. At December 31, 2020 and 2019 the fair value of all customer-related interest rate swap derivatives with credit-risk related contingent features that were in a net liability position, which includes accrued interest but excludes any adjustment for non-performance risk, was $42.6 million and $14.6 million, respectively. The Company has minimum collateral posting thresholds with its customer-related interest rate swap derivative correspondent-bank counterparties to the extent that the Company has a liability position with the correspondent-bank counterparties. At December 31, 2020 and 2019, the Company had posted collateral in the form of cash amounting to $49.2 million and $22.2 million, respectively, which was considered to be a restricted asset and was included in other short-term investments. If the Company had breached any of these provisions at December 31, 2020 or 2019, it would have been required to settle its obligations under the agreements at the termination value. In addition, the Company had cross-default provisions with its commercial customer loan agreements which provide cross-collateralization with the customer loan collateral. |
Balance Sheet Offsetting
Balance Sheet Offsetting | 12 Months Ended |
Dec. 31, 2020 | |
Offsetting [Abstract] | |
Balance Sheet Offsetting | Balance Sheet Offsetting Certain financial instruments, including derivatives, may be eligible for offset in the consolidated balance sheets and/or subject to master netting arrangements or similar agreements. The Company’s derivative transactions with upstream financial institution counterparties are generally executed under International Swaps and Derivative Association master agreements which include “right of set-off” provisions. In such cases there is generally a legally enforceable right to offset recognized amounts. However, the Company does not offset fair value amounts recognized for derivative instruments. The Company nets the amount recognized for the right to reclaim cash collateral against the obligation to return cash collateral arising from derivative instruments executed with the same counterparty under a master netting arrangement. Collateral legally required to be maintained at dealer banks by the Company is monitored and adjusted as necessary. As of December 31, 2020 and 2019, it was determined that no additional collateral would have to be posted to immediately settle these instruments. The following tables present the Company’s asset and liability positions that were eligible for offset and the potential effect of netting arrangements on its financial position, as of the dates indicated: Gross Gross Net Gross Amounts Not Offset Net Financial Collateral (In Thousands) As of December 31, 2020 Derivative Assets Interest rate swaps $ — $ — $ — $ — $ — $ — Customer-related positions: Interest rate swaps 141,822 — 141,822 48 — 141,774 Risk participation agreements 722 — 722 — — 722 Foreign currency exchange contracts – matched customer book 90 — 90 — (1) 89 Foreign currency exchange contracts – foreign currency loan 9 — 9 — — 9 $ 142,643 $ — $ 142,643 $ 48 $ (1) $ 142,594 Derivative Liabilities Interest rate swaps $ — $ — $ — $ — $ — $ — Customer-related positions: Interest rate swaps 42,600 — 42,600 48 42,552 — Risk participation agreements 1,230 — 1,230 — — 1,230 Foreign currency exchange contracts – matched customer book 77 — 77 — — 77 Foreign currency exchange contracts – foreign currency loan 69 — 69 — — 69 $ 43,976 $ — $ 43,976 $ 48 $ 42,552 $ 1,376 Gross Gross Net Gross Amounts Not Offset Net Financial Collateral (In Thousands) As of December 31, 2019 Derivative Assets Interest rate swaps $ — $ — $ — $ — $ — $ — Customer-related positions: Interest rate swaps 64,463 — 64,463 1,434 — 63,029 Risk participation agreements 482 — 482 — — 482 Foreign currency exchange contracts – matched customer book 469 — 469 7 (462) — $ 65,414 $ — $ 65,414 $ 1,441 $ (462) $ 63,511 Derivative Liabilities Interest rate swaps $ 321 $ — $ 321 $ 321 $ — $ — Customer-related positions: Interest rate swaps 18,057 — 18,057 1,434 16,623 — Risk participation agreements 606 — 606 — — 606 Foreign currency exchange contracts – matched customer book 428 — 428 7 — 421 Foreign currency exchange contracts – foreign currency loan 203 — 203 — — 203 $ 19,615 $ — $ 19,615 $ 1,762 $ 16,623 $ 1,230 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities The Company uses fair value measurements to record adjustments to certain assets and liabilities and to determine fair value disclosures. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. 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 rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Company’s own assumptions are set to reflect those that the Company believes market participants would use in pricing the asset or liability at the measurement date. The Company uses prices and inputs that are current as of the measurement date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from Level 1 to Level 2 or from Level 2 to Level 3. Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no active market exists for a portion of the Company’s financial instruments, fair value estimates are based on judgements regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgement, and therefore cannot be determined with precision. Changes in assumptions could significantly affect these estimates. The following methods and assumptions were used by the Company in estimating fair value disclosures: Cash and Cash Equivalents For these financial instruments, which have original maturities of 90 days or less, their carrying amounts reported in the consolidated balance sheets approximate fair value. Trading Securities Trading securities consisted of fixed income municipal securities and were recorded at fair value. All fixed income securities were categorized as Level 2 as the valuations were estimated by a third-party pricing vendor using a valuation matrix with inputs including observable bond interest rate tables, recent transactions, and yield relationships. Available for Sale Securities Available for sale securities recorded at fair value consisted of U.S. Treasury securities, U.S. government-sponsored residential and commercial mortgage-backed securities, U.S. Agency bonds, state and municipal bonds, and a qualified zone academy bond. The Company’s U.S. Treasury securities are traded on active markets and therefore these securities were classified as Level 1. The fair value of U.S. Agency bonds are evaluated using relevant trade data, benchmark quotes and spreads obtained from publicly available trade data, and generated on a price, yield or spread basis as determined by the observed market data. These securities were categorized as Level 2. The fair value of U.S. government-sponsored residential and commercial mortgage-backed securities, were estimated using either a matrix or benchmarks. The inputs used include benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. These securities were categorized as Level 2. State and municipal bonds were classified as Level 2 for the same reasons described for the trading municipal securities. The valuation technique for the qualified zone academy bond was a discounted cash flow methodology using market discount rates. The assumptions used included at least one significant model assumption or input that was unobservable, and therefore, this security was classified as Level 3. Fair value was based on the value of one unit without regard to any premium or discount that may result from concentrations of ownership of a financial instrument, possible tax ramifications, or estimated transaction costs. The estimated fair value of the Company’s securities available for sale, by type, is disclosed in the Securities footnote. Loans Held for Sale Fair value of loans held for sale, whose carrying amounts approximate fair value, was estimated using the anticipated market price based upon pricing indications provided by investor banks. Loans The fair value of commercial construction, commercial and industrial lines of credit, and certain other consumer loans was estimated by discounting the contractual cash flows using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. For commercial, commercial real estate, residential real estate, automobile, and consumer home equity loans, fair value was estimated by discounting contractual cash flows adjusted for prepayment estimates using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. The fair value of PPP loans, which are fully guaranteed by the SBA, approximates the carrying amount. Loans that are deemed to be impaired were recorded at the fair value of the underlying collateral, if the loan is collateral-dependent, or at a carrying value based upon expected cash flows discounted using the loan’s effective interest rate. FHLB Stock The fair value of FHLB stock approximates the carrying amount based on the redemption provisions of the FHLB. Rabbi Trust Investments Rabbi trust investments consisted primarily of cash and cash equivalents, U.S. government agency obligations, equity securities, mutual funds and other exchange-traded funds, and were recorded at fair value and included in other assets. The purpose of these rabbi trust investments is to fund certain executive non-qualified retirement benefits and deferred compensation. The fair value of other U.S. government agency obligations was estimated using either a matrix or benchmarks. The inputs used include benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. These securities were categorized as Level 2. The equity securities, mutual funds and other exchange-traded funds were valued based on quoted prices from the market. The equity securities, mutual funds and exchange-traded funds traded in an active market were categorized as Level 1. Mutual funds at net asset value amounted to $53.9 million and $16.2 million at December 31, 2020 and 2019, respectively. There were no redemption restrictions on these mutual funds at the end of any period presented. Bank-Owned Life Insurance The fair value of bank-owned life insurance was based upon quotations received from bank-owned life insurance dealers. Deposits The fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits, savings and interest checking accounts, and money market accounts, was equal to their carrying amount. The fair value of time deposits was based on the discounted value of contractual cash flows using current market interest rates. The fair value estimates of deposits do not include the benefit that results from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the wholesale market (core deposit intangibles). Other Borrowed Funds For other borrowed funds that mature in 90 days or less, the carrying amount reported in the consolidated balance sheets approximates fair value. For borrowed funds that mature in more than 90 days, the fair value was based on the discounted value of the contractual cash flows applying interest rates currently being offered in the market. FHLB Advances The fair value of FHLB advances was based on the discounted value of contractual cash flows. The discount rates used are representative of approximate rates currently offered on instruments with similar remaining maturities. Escrow Deposits of Borrowers The fair value of escrow deposits of borrowers, which have no stated maturity, approximates the carrying amount. Interest Rate Swaps The fair value of interest rate swaps was determined using discounted cash flow analysis on the expected cash flows of the interest rate swaps. This analysis reflects the contractual terms of the interest rate swaps, including the period of maturity, and uses observable market-based inputs, including interest rate curves and implied volatility. In addition, for customer-related interest rate swaps, the analysis reflects a credit valuation adjustment to reflect the Company’s own non-performance risk and the respective counterparty’s non-performance risk in the fair value measurements. The majority of inputs used to value its interest rate swaps fall within Level 2 of the fair value hierarchy, but the credit valuation adjustments associated with the interest rate swaps utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. However, at December 31, 2020 and 2019, the impact of the Level 3 inputs on the overall valuation of the interest rate swaps was deemed insignificant to the overall valuation. As a result, the interest rate swaps were categorized as Level 2 within the fair value hierarchy. Risk Participations The fair value of risk participations was determined based upon the total expected exposure of the derivative which considers the present value of cash flows discounted using market-based inputs and was categorized as Level 2 within the fair value hierarchy. The fair value also included a credit valuation adjustment which evaluates the credit risk of its counterparties by considering factors such as the likelihood of default by the counterparties, its net exposures, the remaining contractual life, as well as the amount of collateral securing the position. The change in value of derivative assets and liabilities attributable to credit risk was not significant during the reported periods. Foreign Currency Forward Contracts The fair values of foreign currency forward contracts were based upon the remaining expiration period of the contracts and bid quotations received from foreign exchange contract dealers and were categorized as Level 2 within the fair value hierarchy. Fair Value of Assets and Liabilities Measured on a Recurring Basis The following tables present the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2020 and 2019: Fair Value Measurements at Reporting Date Using Balance as of December 31, 2020 Quoted Prices in Significant Significant Description (Dollars in thousands) Assets Securities available for sale Government-sponsored residential mortgage-backed securities $ 2,148,800 $ — $ 2,148,800 $ — Government-sponsored commercial mortgage-backed securities 17,081 — 17,081 — U.S. Agency bonds 666,709 — 666,709 — U.S. Treasury securities 70,369 70,369 — — State and municipal bonds and obligations 280,902 — 280,902 — Rabbi trust investments 91,683 83,884 7,799 — Loans held for sale 1,140 — 1,140 — Interest rate swap contracts Customer-related positions 141,822 — 141,822 — Risk participation agreements 722 — 722 — Foreign currency forward contracts Matched customer book 90 — 90 — Foreign currency loan 9 — 9 — Total $ 3,419,327 $ 154,253 $ 3,265,074 $ — Liabilities Interest rate swap contracts Customer-related positions $ 42,600 $ — $ 42,600 $ — Risk participation agreements 1,230 — 1,230 — Foreign currency forward contracts Matched customer book 77 — 77 — Foreign currency loan 69 — 69 — Total $ 43,976 $ — $ 43,976 $ — Fair Value Measurements at Reporting Date Using Description Balance as of December 31, 2019 Quoted Prices in Significant Significant (In thousands) Assets Trading securities Municipal bonds $ 961 $ — $ 961 $ — Securities available for sale Government-sponsored residential mortgage-backed securities 1,167,968 — 1,167,968 — U.S. Treasury securities 50,420 50,420 — State and municipal bonds and obligations 283,538 — 283,538 — Qualified zone academy bond 6,310 — — 6,310 Rabbi trust investments 78,012 63,945 14,067 — Loans held for sale 26 — 26 — Interest rate swap contracts Customer-related positions 64,463 — 64,463 — Risk participation agreements 482 — 482 — Foreign currency forward contracts Matched customer book 469 — 469 — Total $ 1,652,649 $ 114,365 $ 1,531,974 $ 6,310 Liabilities Interest rate swap contracts Cash flow hedges – interest rate positions $ 321 $ — $ 321 $ — Customer-related positions 18,057 — 18,057 — Risk participation agreements 606 — 606 — Foreign currency forward contracts Matched customer book 428 — 428 — Foreign currency loan 203 — 203 — Total $ 19,615 $ — $ 19,615 $ — There were no transfers to or from Level 1, 2 and 3 during the years ended December 31, 2020 and 2019. For the fair value measurements which are classified as Level 3 within the fair value hierarchy, the Company’s Treasury and Finance groups determine the valuation policies and procedures. For the valuation of the qualified zone academy bond, the Company uses third-party valuation information. Management determined that no changes to the quantitative unobservable inputs were necessary. Management employs various techniques to analyze the valuation it receives from third parties, such as analyzing changes in market yields. Management reviews changes in fair value from period to period to ensure that values received from the third parties are consistent with their expectation of the market. The table below presents a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2020, 2019 and 2018: Securities (In thousands) Balance at January 1, 2018 $ 5,936 Gains and losses (realized/unrealized): Included in net income 109 Balance at December 31, 2018 $ 6,045 Gains and losses (realized/unrealized): Included in net income 109 Included in other comprehensive income 156 Balance at December 31, 2019 $ 6,310 Gains and losses (realized/unrealized): Included in net income 106 Included in other comprehensive income (156) Settlement (6,260) Balance at December 31, 2020 $ — Fair Value of Assets and Liabilities Measured on a Nonrecurring Basis The Company may also be required, from time to time, to measure certain other assets on a nonrecurring basis in accordance with generally accepted accounting principles. The following tables summarize the fair value of assets and liabilities measured at fair value on a nonrecurring basis, as of December 31, 2020 and 2019. Fair Value Measurements at Reporting Date Using Description Balance as of December 31, 2020 Quoted Prices Significant Significant (Dollars in thousands) Assets Collateral-dependent impaired loans whose fair value is based upon appraisals $ 11,036 $ — $ — $ 11,036 Fair Value Measurements at Reporting Date Using Description Balance as of December 31, 2019 Quoted Prices Significant Significant (Dollars in thousands) Assets Collateral-dependent impaired loans whose fair value is based upon appraisals $ 4,261 $ — $ — $ 4,261 For the valuation of the other real estate owned and collateral-dependent impaired loans, the Company relies primarily on third-party valuation information from certified appraisers and values are generally based upon recent appraisals of the underlying collateral, brokers’ opinions based upon recent sales of comparable properties, estimated equipment auction or liquidation values, income capitalization, or a combination of income capitalization and comparable sales. Depending on the type of underlying collateral, valuations may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of these possible adjustments may vary. Impaired loans in which a reserve was established based upon expected cash flows discounted at the loan’s effective interest rate are not deemed to be measured at fair value. Disclosures about Fair Value of Financial Instruments The estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below as of the dates indicated: Fair Value Measurements at Reporting Date Using Carrying Value as of December 31, 2020 Fair Value as of December 31, 2020 Quoted Prices Significant Significant (Dollars in thousands) Assets Loans, net of allowance for credit losses $ 9,593,958 $ 9,779,195 $ — $ — $ 9,779,195 FHLB stock 8,805 8,805 — 8,805 — Bank-owned life insurance 78,561 78,561 — 78,561 — Liabilities Deposits $ 12,155,784 $ 12,155,843 $ — $ 12,155,843 $ — FHLB advances 14,624 14,434 — 14,434 — Escrow deposits from borrowers 13,425 13,425 — 13,425 — Fair Value Measurements at Reporting Date Using Carrying Value as of December 31, 2019 Fair Value as of December 31, 2019 Quoted Prices Significant Significant (Dollars in thousands) Assets Loans, net of allowance for credit losses $ 8,889,184 $ 9,116,018 $ — $ — $ 9,116,018 FHLB stock 9,027 9,027 — 9,027 — Bank-owned life insurance 77,546 77,546 — 77,546 — Liabilities Deposits $ 9,551,392 $ 9,548,889 $ — $ 9,548,889 $ — FHLB advances 18,964 18,188 — 18,188 — Escrow deposits from borrowers 15,349 15,349 — 15,349 — This summary excludes certain financial assets and liabilities for which the carrying value approximates fair value. For financial assets, these may include cash and due from banks, federal funds sold and short-term investments. For financial liabilities, these may include federal funds purchased. These instruments would all be considered to be classified as Level 1 within the fair value hierarchy. Also excluded from the summary are financial instruments measured at fair value on a recurring and nonrecurring basis, as previously described. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company adopted the new revenue recognition standard under ASC 606 on January 1, 2019 using the modified retrospective approach. Revenue recognition remained substantially unchanged following adoption of ASC 606 and, therefore, there were no material changes to the Company’s Consolidated Financial Statements as of or for the year ended December 31, 2019, as a result of adopting the new guidance. The Company derives a portion of its noninterest income from contracts with customers, as such, revenue from such arrangements is recognized when control of goods or services is transferred to the customer, in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company considers the terms of the contract and all relevant facts and circumstances when applying this guidance. The Company measures revenue and timing of recognition by applying the following five steps: 1. Identify the contract(s) with the customers. 2. Identify the performance obligations. 3. Determine the transaction price. 4. Allocate the transaction price to the performance obligations. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Performance obligations The Company’s performance obligations are generally satisfied either at a point in time or over time, as services are rendered. Unsatisfied performance obligations at the report date are not material to the Company’s Consolidated Financial Statements. The Company has disaggregated its revenue within the scope of ASC 606 by type of service, as presented in the table below. These categories reflect how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. For the Year Ended December 31, 2020 2019 2018 (In thousands) Insurance commissions $ 94,495 $ 90,587 $ 91,885 Service charges on deposit accounts 21,560 27,043 26,897 Trust and investment advisory fees 21,102 19,653 19,128 Debit card processing fees 10,277 10,452 16,162 Other non-interest income 7,311 8,483 9,981 Total noninterest income in-scope of ASC 606 154,745 156,218 164,053 Total noninterest income out-of-scope of ASC 606 23,628 26,081 16,542 Total noninterest income $ 178,373 $ 182,299 $ 180,595 Additional information related to each of the revenue streams is further noted below. Insurance Commissions The Company acts as an agent in offering property, casualty, and life and health insurance to both commercial and consumer customers though Eastern Insurance Group LLC. The Company earns a fixed commission on the sales of these products and services. The Company may also earn bonus commissions based upon meeting certain volume thresholds. In general, the Company recognizes commission revenues when earned based upon the effective date of the policy. For certain insurance products, the Company may also earn and recognize annual residual commissions commensurate with annual premiums being paid. The Company also earns profit-sharing, or contingency revenues from the insurers with whom the Company places business. These profit-sharing revenues are performance bonuses from the insurers based upon certain performance metrics such as floors on written premiums, loss rates, and growth rates. Because the Company’s expectation of the ultimate profit-sharing revenue amounts to be earned can vary from period to period, the Company does not recognize this revenue until it has concluded that, based on all the facts and information available, it is probable that a significant revenue reversal will not occur in future periods. Insurance commissions earned but not yet received amounted to $15.8 million and $3.9 million as of December 31, 2020, and 2019 respectively, and were included in other assets. Deposit Service Charges The Company offers various deposit account products to its customers governed by specific deposit agreements applicable to either personal customers or business customers. These agreements identify the general conditions and obligations of both parties and include standard information regarding deposit account-related fees. Deposit account services include providing access to deposit accounts as well as access to the various deposit transactional services of the Company. These transactional services are primarily those that are identified in the standard fee schedule, and include, but are not limited to, services such as overdraft protection, wire transfer, and check collection. The Company charges monthly fixed service fees associated with the customer having access to the deposit account as well as separate fixed fees associated with and at the time specific transactions are entered into by the customer. As such, the Company considers that its performance obligations are fulfilled when customers are provided deposit account access or when the requested deposit transaction is completed. Cash management services are a subset of the deposit service charges revenue stream. These services include ACH transaction processing, positive pay, lockbox, and remote deposit services. These services are also governed by separate agreements entered into by the customer. The fee arrangement for these services is structured as a fixed fee per transaction which may be offset by earnings credits. An earnings credit is a discount that a customer receives based upon the investable balance in the applicable covered deposit account(s) for a given month. Earnings credits are only good for the given month. That is, if cash management fees for a given month are less than the month’s earnings credit, the remainder of the credit does not carry over to the following month. Cash management fees are recognized as revenue in the month that the services are provided. Cash management fees earned but not yet received amounted to $1.0 million and $0.8 million as of December 31, 2020 and 2019 respectively, and were included in other assets. Trust and Investment Advisory Fees The Company offers investment management and trust services to individuals, institutions, small businesses and charitable institutions. Each investment management product is governed by its own contract along with a separate identifiable fee schedule unique to that product. The Company also offers additional services, such as estate settlement, financial planning, tax services, and other special services quoted at the customer’s request. The asset management and/or custody fees are primarily based upon a percentage of the monthly valuation of the principal assets in the customer’s account. Customers are also charged a base fee which is prorated over a twelve-month period. Fees for additional or special services are generally fixed in nature and are charged as services are rendered. All revenue is recognized in correlation to the monthly management fee determinations or as transactional services are provided. Debit Card Processing Fees The Company provides debit cards to its customers which are authorized and settled through various card payment networks, and in exchange, the Company earns revenue as determined by each payment network’s interchange program. Regardless of the network that is utilized to authorize and settle the payment, the merchant that provides the product or service to the debit card holder is ultimately responsible for the interchange payment to the Company. Debit card processing fees are recognized as card transactions are settled within each network. Debit card processing fees earned but not yet received amounted to $0.3 million and $0.3 million as of December 31, 2020 and 2019, respectively, and were included in other assets. Other Noninterest Income The Company earns various types of other noninterest income that fall within the scope of the new revenue recognition rules and have been aggregated into one general revenue stream in the table noted above. Noninterest income includes, but is not limited to, the following types of revenue with customers: safe deposit rent, ATM surcharge fees, customer checkbook fees and insured cash sweep fee income. Individually, these sources of noninterest income are immaterial. |
Other Comprehensive Income
Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2020 | |
Statement of Other Comprehensive Income [Abstract] | |
Other Comprehensive Income | Other Comprehensive Income The following tables present a reconciliation of the changes in the components of other comprehensive income (loss) for the dates indicated including the amount of income tax (expense) benefit allocated to each component of other comprehensive income (loss): For the Year Ended December 31, 2020 Pre Tax Tax (Expense) After Tax (Dollars in thousands) Unrealized gains (losses) on securities available for sale: Change in fair value of securities available for sale $ 30,926 $ (6,828) $ 24,098 Less: reclassification adjustment for gains included in net income 288 (64) 224 Net change in fair value of securities available for sale 30,638 (6,764) 23,874 Unrealized gains (losses) on cash flow hedges: Change in fair value of cash flow hedges (1) 46,871 (13,175) 33,696 Less: net cash flow hedge gains reclassified into interest income 27,131 (7,626) 19,505 Net change in fair value of cash flow hedges 19,740 (5,549) 14,191 Defined benefit pension plans: Change in actuarial net loss (58,811) 16,532 (42,279) Less: amortization of actuarial net loss (10,787) 3,033 (7,754) Plan amendment – prior service credit 133,439 (37,510) 95,929 Less: net accretion of prior service credit 1,931 (543) 1,388 Net change in other comprehensive income for defined benefit postretirement plans 83,484 (23,468) 60,016 Total other comprehensive income $ 133,862 $ (35,781) $ 98,081 For the Year Ended December 31, 2019 Pre Tax Tax (Expense) After Tax (Dollars in thousands) Unrealized gains (losses) on securities available for sale: Change in fair value of securities available for sale $ 54,881 $ (12,166) $ 42,715 Less: reclassification adjustment for gains included in net income 2,016 (459) 1,557 Net change in fair value of securities available for sale 52,865 (11,707) 41,158 Unrealized gains (losses) on cash flow hedges: Change in fair value of cash flow hedges 20,275 (5,699) 14,576 Less: net cash flow hedge gains reclassified into interest income 2,698 (758) 1,940 Net change in fair value of cash flow hedges 17,577 (4,941) 12,636 Defined benefit pension plans: Change in actuarial net loss (37,722) 10,603 (27,119) Less: amortization of actuarial net loss (7,242) 2,036 (5,206) Less: amortization of prior service cost (44) 11 (33) Net change in other comprehensive income for defined benefit postretirement plans (30,436) 8,556 (21,880) Total other comprehensive income $ 40,006 $ (8,092) $ 31,914 For the Year Ended December 31, 2018 Pre Tax Tax (Expense) After Tax (Dollars in thousands) Unrealized gains (losses) on securities available for sale: Change in fair value of securities available for sale $ (39,144) $ 8,659 $ (30,485) Less: reclassification adjustment for gains included in net income 50 (10) 40 Net change in fair value of securities available for sale (39,194) 8,669 (30,525) Unrealized gains (losses) on cash flow hedges: Change in fair value of cash flow hedges 5,354 (1,505) 3,849 Less: net cash flow hedge gains reclassified into interest income 1,198 (337) 861 Net change in fair value of cash flow hedges 4,156 (1,168) 2,988 Defined benefit pension plans: Change in actuarial net loss 2,680 (754) 1,926 Less: amortization of actuarial net loss (7,621) 2,142 (5,479) Less: amortization of prior service cost (44) 12 (32) Net change in other comprehensive income for defined benefit postretirement plans 10,345 (2,908) 7,437 Total other comprehensive income $ (24,693) $ 4,593 $ (20,100) (1) Includes amortization of $11.4 million of the remaining balance of realized but unrecognized gains, net of tax, from the termination of interest rate swaps. The total realized gain of $41.2 million, net of tax, will be recognized in earnings through January 2023. The balance of this gain had amortized to $29.8 million, net of tax, at December 31, 2020. The following table illustrates the changes in the balances of each component of accumulated other comprehensive income (loss), net of tax: Unrealized Unrealized Defined Benefit Total (In thousands) Beginning balance: January 1, 2018 $ 11,165 $ — $ (66,826) $ (55,661) Other comprehensive income (loss) before reclassifications (30,485) 3,849 — (26,636) Less: Amounts reclassified from accumulated other comprehensive income 40 861 (7,437) (6,536) Net current-period other comprehensive income (30,525) 2,988 7,437 (20,100) Ending balance: December 31, 2018 $ (19,360) $ 2,988 $ (59,389) $ (75,761) Other comprehensive income (loss) before reclassifications 42,715 14,576 (27,119) 30,172 Less: Amounts reclassified from accumulated other comprehensive income 1,557 1,940 (5,239) (1,742) Net current-period other comprehensive income 41,158 12,636 (21,880) 31,914 Ending balance: December 31, 2019 $ 21,798 $ 15,624 $ (81,269) $ (43,847) Other comprehensive income (loss) before reclassifications 24,098 33,696 53,650 111,444 Less: Amounts reclassified from accumulated other comprehensive income 224 19,505 (6,366) 13,363 Net current-period other comprehensive income 23,874 14,191 60,016 98,081 Ending balance: December 31, 2020 $ 45,672 $ 29,815 $ (21,253) $ 54,234 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment ReportingThe Company’s primary reportable segment is its banking business, which offers a range of commercial, retail, wealth management and banking services, and consists primarily of attracting deposits from the general public and investing those deposits, together with borrowings and funds generated from operations, to originate loans in a variety of sectors and to invest in securities. Revenue from the banking business consists primarily of interest earned on loans and investment securities. In addition to its banking business reportable segment, the Company has an insurance agency business reportable segment, which consists of insurance-related activities, acting as an independent agent in offering commercial, personal and employee benefits insurance products to individual and commercial clients. Revenue from the insurance agency business consists primarily of commissions on sales of insurance products and services. Results of operations and selected financial information by segment and reconciliation to the Consolidated Financial Statements as of and for the years ended December 31, 2020, 2019, and 2018 were as follows: As of and for the year ended December 31, 2020 Banking Insurance Other / Total (In thousands) Net interest income $ 401,251 $ — $ — $ 401,251 Provision for loan losses 38,800 — — 38,800 Net interest income after provision for loan losses 362,451 — — 362,451 Noninterest income 82,334 96,739 (700) 178,373 Noninterest expense 431,705 77,806 (4,588) 504,923 Income before provision for income taxes 13,080 18,933 3,888 35,901 Income tax provision 7,870 5,293 — 13,163 Net income $ 5,210 $ 13,640 $ 3,888 $ 22,738 Total assets $ 15,831,175 $ 200,216 $ (67,201) $ 15,964,190 Total liabilities $ 12,547,838 $ 55,501 $ (67,201) $ 12,536,138 As of and for the year ended December 31, 2019 Banking Insurance Other / Total (In thousands) Net interest income $ 411,264 $ — $ — $ 411,264 Provision for loan losses 6,300 — — 6,300 Net interest income after provision for loan losses 404,964 — — 404,964 Noninterest income 89,840 92,705 (246) 182,299 Noninterest expense 337,323 79,043 (3,682) 412,684 Income before provision for income taxes 157,481 13,662 3,436 174,579 Income tax provision 35,542 3,939 — 39,481 Net income $ 121,939 $ 9,723 $ 3,436 $ 135,098 Total assets $ 11,515,117 $ 165,965 $ (52,307) $ 11,628,775 Total liabilities $ 10,046,189 $ 34,740 $ (52,307) $ 10,028,622 As of and for the year ended December 31, 2018 Banking Insurance Other / Total (In thousands) Net interest income $ 390,044 $ — $ — $ 390,044 Provision for loan losses 15,100 — — 15,100 Net interest income after provision for loan losses 374,944 — — 374,944 Noninterest income 86,596 94,233 (234) 180,595 Noninterest expense 326,956 73,852 (2,880) 397,928 Income before provision for income taxes 134,584 20,381 2,646 157,611 Income tax provision 29,313 5,571 — 34,884 Net income $ 105,271 $ 14,810 $ 2,646 $ 122,727 Total assets $ 11,265,752 $ 152,832 $ (40,297) $ 11,378,287 Total liabilities $ 9,954,112 $ 31,331 $ (40,297) $ 9,945,146 |
Parents Company Financial State
Parents Company Financial Statements | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Parents Company Financial Statements | Parent Company Financial Statements Condensed financial information relative to Eastern Bankshares Inc.'s ( “ the parent company") balance sheets at December 31, 2020 and 2019 and the related statements of income and cash flows for the years ended December 31, 2020, 2019 and 2018 are presented below. The statement of shareholders’ equity is not presented below as the parent company’s shareholders’ equity is that of the consolidated Company. BALANCE SHEETS As of December 31, 2020 2019 (Dollars in thousands) Assets Cash and cash equivalents (1) $ 741,034 $ 4,730 Goodwill and other intangibles, net 744 744 Deferred income taxes, net 10,817 — Investment in subsidiaries 2,674,133 1,594,024 Other assets 1,324 771 Total assets $ 3,428,052 $ 1,600,269 Liabilities and shareholders’ equity Other liabilities $ — $ 116 Total liabilities — 116 Shareholders’ equity 3,428,052 1,600,153 Total liabilities and shareholders’ equity $ 3,428,052 $ 1,600,269 (1) Entire balance eliminates in consolidation. STATEMENTS OF INCOME For the Year Ended December 31, 2020 2019 2018 (In thousands) Expenses Professional services $ 1,485 $ 360 $ 255 Charitable contributions 91,287 — — Other 151 105 129 Total expenses 92,923 465 384 Loss before income taxes and equity in undistributed income of subsidiaries (92,923) (465) (384) Income tax benefit (13,933) (131) (108) Loss before equity in undistributed income of subsidiaries (78,990) (334) (276) Equity in undistributed income of subsidiaries 101,728 135,432 123,003 Net income $ 22,738 $ 135,098 $ 122,727 STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2020 2019 2018 (In thousands) Cash flows provided by (used in) operating activities Net income $ 22,738 $ 135,098 $ 122,727 Adjustments to reconcile net income to cash provided by operating activities Equity in undistributed income of subsidiaries (101,728) (135,432) (123,003) Issuance of common shares donated to the Eastern Bank Charitable Foundation 91,287 — — ESOP expense 2,351 — — Change in: Deferred income taxes, net (10,817) — — Other, net (350) 25 (9) Net cash provided by operating activities 3,481 (309) (285) Cash flows used in investing activities Investment in Eastern Bank (882,096) — — Net cash used in investing activities (882,096) — — Cash flows provided by (used in) financing activities Proceeds from issuance of common shares 1,792,878 — — Purchase of shares by ESOP (149,407) — — Payments for deferred offering costs (28,552) (346) — Net cash provided by financing activities 1,614,919 (346) — Net increase in cash and cash equivalents 736,304 (655) (285) Cash and cash equivalents at beginning of year 4,730 5,385 5,670 Cash and cash equivalents at end of year $ 741,034 $ 4,730 $ 5,385 |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited) First Quarter Second Quarter Third Quarter Fourth Quarter 2020 2019 2020 2019 2020 2019 2020 2019 (Dollars in thousands, except per share data) Interest and dividend income $ 106,159 $ 111,483 $ 101,933 $ 112,838 $ 100,513 $ 112,723 $ 104,723 $ 107,973 Interest expense 6,013 8,811 3,178 9,315 1,771 8,575 1,115 7,052 Net interest income 100,146 102,672 98,755 103,523 98,742 104,148 103,608 100,921 Provision for loan losses 28,600 3,000 8,600 1,500 700 — 900 1,800 Net interest income after provision for loan losses 71,546 99,672 90,155 102,023 98,042 104,148 102,708 99,121 Noninterest income 33,369 47,800 47,657 45,632 47,709 41,590 49,638 47,277 Noninterest expense 95,172 104,829 100,765 101,570 109,817 100,666 199,169 105,619 Income before provision for income taxes 9,743 42,643 37,047 46,085 35,934 45,072 (46,823) 40,779 Income tax provision (benefit) 1,298 9,678 7,197 11,032 7,429 9,230 (2,761) 9,541 Net income (loss) $ 8,445 $ 32,965 $ 29,850 $ 35,053 $ 28,505 $ 35,842 $ (44,062) $ 31,238 Earnings (loss) per share: Basic $ — $ — $ — $ — $ — $ — $ (0.26) $ — Diluted — — — — — — (0.26) — Average common shares outstanding: Basic — — — — — — 171,812,535 — Diluted — — — — — — 171,812,535 — |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Parties | Related PartiesThe Company has, and expects to have in the future, related party transactions in the ordinary course of business.The transactions include, but are not limited to, lending activities and deposits services with directors and executive officers of the Company and their affiliates. Based on the Company’s assessment, such transactions are consistent with prudent banking practices and are within applicable banking regulations. Further details relating to certain party transactions are outlined below: At December 31, 2020 and 2019, the amount of deposits from related parties held by the Company totaled $10.4 million and $8.3 million, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn January 28, 2021, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.06 per share of common stock. Dividends amounting to $11.2 million were payable on March 15, 2021 to shareholders of record as of the close of business on March 3, 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s Consolidated Financial Statements have been prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) as set forth by the Financial Accounting Standards Board (“FASB”) and its Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) as well as the rules and interpretive releases of the SEC under the authority of federal securities laws. The Consolidated Financial Statements include the accounts of the Company, its wholly-owned subsidiaries, and entities in which it holds a controlling financial interest through being the primary beneficiary or through holding a majority of the voting interest. All intercompany accounts and transactions have been eliminated in consolidation. Certain previously reported amounts have been reclassified to conform to the current year's presentation. |
Use of Estimates | Use of Estimates In preparing the Consolidated Financial Statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheets and income and expenses for the periods reported. Actual results could differ from those estimates based on changing conditions, including economic conditions and future events. Material estimates that are particularly susceptible to change relate to the determination of the allowance for loan losses, valuation and fair value measurements, other-than-temporary impairment on investment securities, the liabilities for benefit obligations (particularly pensions), the provision for income taxes and impairment of goodwill and other intangibles. |
Cash and Cash Equivalents | Cash and Cash EquivalentsCash and cash equivalents include cash on hand and amounts due from banks, federal funds sold, and other short-term investments including restricted cash pledged, all of which have an original maturity of 90 days or less. |
Securities | Securities Debt securities are classified at the time of purchase as either “trading,” “available for sale” or “held to maturity.” Equity securities are measured at fair value with changes in the fair value recognized through net income. Debt securities that are bought and held principally for the purpose of resale in the near terms are classified as trading securities and recorded at fair value, with subsequent changes in fair value included in net income. Debt securities that the Company has the positive intent and the ability to hold to maturity are classified as held to maturity securities and recorded at amortized cost. Debt securities not classified as either trading or held to maturity are classified as available for sale and recorded at fair value, with changes in fair value excluded from net income and reported in other comprehensive income, net of related tax. Amortization of premiums and accretion of discounts are computed using the effective interest rate method. Management evaluates impaired securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to the length of time and the extent to which the fair value has been less than cost, current market conditions, the financial condition and near-term prospects of the issuer, performance of collateral underlying the securities, the ratings of the individual securities, the interest rate environment, the Company’s intent to sell the security or whether it is more likely than not that the Company will be required to sell the debt security before its anticipated recovery, as well as other qualitative factors. |
Loans | LoansLoans are reported at their principal amount outstanding, net of deferred loan fees and any unearned discount or unamortized premium for acquired loans. Unearned discount and unamortized premium are accreted and amortized, respectively, to interest and dividend income on a basis that results in level rates of return over the terms of the loans. For originated loans, origination fees and related direct incremental origination costs are offset, and the resulting net amount is deferred and amortized over the life of the related loans using the interest method, assuming a certain level of prepayments. When loans are sold or repaid, the unamortized fees and costs are recorded to interest and dividend income. Interest income on loans is accrued based upon the daily principal amount outstanding except for loans on non-accrual status. For acquired loans with no signs of credit deterioration at acquisition, interest income is also accrued based upon the daily principal amount outstanding, adjusted further by the accretion of any discount or amortization of any premium associated with the loan. |
Nonaccrual Loans | Non-accrual LoansInterest accruals are generally discontinued when management has determined that the borrower may be unable to meet contractual obligations and/or when loans are 90 days or more past due. Exceptions may be made if management believes that collateral held by the Company is clearly sufficient and in full satisfaction of both principal and interest or the loan is accounted for as a purchased credit-impaired loan. When a loan is placed on non-accrual, all interest previously accrued but not collected is reversed against current period income and amortization of deferred loan fees is discontinued. Interest received on non-accrual loans is either applied against principal or reported as income according to management’s judgment as to the collectability of principal. Non-accrual loans may be returned to an accrual status when principal and interest payments are no longer delinquent, and the risk characteristics of the loan have improved to the extent that there no longer exists a concern as to the collectability of principal and interest. Loans are considered past due based upon the number of days delinquent according to their contractual terms. Non-accrual loans and loans that are more than 90 days past due but still accruing interest are considered NPLs. |
Impaired Loans | Impaired Loans Impaired loans consist of all loans for which management has determined it is probable the Company will be unable to collect all amounts due according to the contractual terms of the loan agreements. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. The Company measures impairment of loans using a discounted cash flow method, the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. |
Troubled Debt Restructured ("TDR") Loans | Troubled Debt Restructured (“TDR”) Loans In cases where a borrower experiences financial difficulties and the Company makes certain concessionary modifications to contractual terms, the loan is classified as a TDR. Modifications may include adjustments to interest rates, extensions of maturity, consumer loans where the borrower’s obligations have been effectively discharged through Chapter 7 bankruptcy and the borrower has not reaffirmed the debt to the Company, and other actions intended to minimize economic loss and avoid foreclosure or repossession of collateral. All TDR loans are considered impaired and therefore are subject to a specific review for impairment loss. The impairment analysis discounts the present value of the anticipated cash flows by the loan’s contractual rate of interest in effect prior to the loan’s modification or the fair value of collateral if the loan is collateral dependent. The amount of impairment loss, if any, is recorded as a specific loss allocation to each individual loan in the allowance for loan losses. Commercial loans (commercial and industrial, commercial real estate, commercial construction, and business banking loans) and residential loans that have been classified as TDRs and which subsequently default are reviewed to determine if the loan should be deemed collateral dependent. In such an instance, any shortfall between the value of the collateral and the book value of the loan is determined by measuring the recorded investment in the loan against the fair value of the collateral less costs to sell. |
Purchased Credit-impaired ("PCI") Loans | Purchased Credit-impaired (“PCI”) Loans At acquisition, loans that have evidence of deterioration in credit quality since origination and for which it is probable that all contractually required payments will not be collected are initially recorded at fair value with no valuation allowance. Such loans are deemed to be PCI loans. Under the accounting model for PCI loans, the excess of cash flows expected to be collected over the carrying amount of the loans, referred to as the “accretable yield,” is accreted into interest income over the life of the loans using the effective yield method. Accordingly, PCI loans are not subject to classification as non-accrual in the same manner as originated loans. Rather, acquired loans are considered to be accruing loans because their interest income relates to the accretable yield recognized and not to contractual interest payments at the loan level. The difference between contractually required principal and interest payments and the cash flows expected to be collected, referred to as the “non-accretable difference,” includes estimates of both the impact of prepayments and future credit losses expected to be incurred over the life of the loans. The estimate of cash flows expected to be collected is regularly re-assessed subsequent to acquisition. These re-assessments involve updates, as necessary, of the key assumptions and estimates used in the initial estimate of fair value. Generally speaking, expected cash flows are affected by: • Changes in the expected principal and interest payments over the estimated life – Changes in expected cash flows may be driven by the credit outlook and actions taken with borrowers. Changes in expected future cash flows resulting from loan modifications are included in the assessment of expected cash flows. • Change in prepayment assumptions – Prepayments affect the estimated life of the loans, which may change the amount of interest income expected to be collected. • Change in interest rate indices for variable rate loans – Expected future cash flows are based, as applicable, on the variable rates in effect at the time of the assessment of expected cash flows. A decrease in expected cash flows in subsequent periods may indicate that the loan is impaired which would require the establishment of an allowance for loan losses by a charge to the provision for loan losses. An increase in expected cash flows in subsequent periods serves, first, to reduce any previously established allowance for loan losses by the increase in the present value of cash flows expected to be collected, and results in a recalculation of the amount of accretable yield for the loan. The adjustment of accretable yield due to an increase in expected cash flows is accounted for as a change in estimate. The additional cash flows expected to be collected are reclassified from the non-accretable difference to the accretable yield, and the amount of periodic accretion is adjusted accordingly over the remaining life of the loans. A PCI loan may be resolved either through receipt of payment (in full or in part) from the borrower, the sale of the loan to a third party, or foreclosure of the collateral. For PCI loans accounted for on an individual loan basis and resolved directly with the borrower, any amount received from resolution in excess of the carrying amount of the loan is recognized and reported within interest income. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established to provide for probable losses incurred in the Company’s loan portfolio at the balance sheet date and is established through a provision for loan losses charged to net income. The allowance is based on management’s assessment of many factors, including the risk characteristics of the loan portfolio, current economic conditions, and trends in loan delinquencies and charge-offs. Charge-offs, net of recoveries, are charged directly to the allowance. Commercial and residential loans are charged-off in the period in which they are deemed uncollectible. Delinquent loans in these product types are subject to ongoing review and analysis to determine if a charge-off in the current period is appropriate. For consumer finance loans, policies and procedures exist that require charge-off consideration upon a certain triggering event depending on the product type. Charge-off triggers include: 120 days delinquent for automobile, home equity, and other consumer loans with the exception of cash reserve loans for which the trigger is 150 days delinquent; death of the borrower; or Chapter 7 bankruptcy. In addition to those events, the charge-off determination includes other loan quality indicators, such as collateral position and adequacy or the presence of other repayment sources. The allowance for loan losses is evaluated on a regular basis by management. While management uses current information in establishing the allowance for losses, future adjustments to the allowance may be necessary if economic conditions or conditions relative to borrowers differ substantially from the assumptions used in making the evaluation. Management uses a methodology to systematically estimate the amount of loss incurred in the portfolio. The Company’s commercial real estate, commercial and industrial, commercial construction and business banking loans are evaluated using a loan rating system, historical losses and other factors which form the basis for estimating incurred losses. Homogeneous populations of loans, including residential mortgages and consumer loans, are analyzed as groups taking into account delinquency ratios, historical loss experience and charge-offs. The allowance consists of specific and general components. The specific component consists of reserves for impaired loans (defined as those where management has determined it is probable it will not collect all payments when due), typically classified as either doubtful or substandard. For impaired loans, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the loan is lower than the carrying value of the loan. The general component covers non-impaired, non-classified loans and is based on the Company’s historical loss experience adjusted for qualitative factors, including internal infrastructure factors, external macroeconomic factors, internal portfolio factors and external industry data, all customized to loan pools that include loans with similar characteristics. |
Mortgage Banking Activities | Mortgage Banking ActivitiesMortgage loans held for sale to the secondary market are carried at the lower of cost or estimated market value on an individual loan basis. The Company enters into commitments to fund residential mortgage loans with an offsetting forward commitment to sell them in the secondary markets in order to mitigate interest rate risk. Gains or losses on sales of mortgage loans are recognized in the consolidated statements of income at the time of sale. Interest income is recognized on loans held for sale between the time the loan is funded and the loan is sold. Direct loan origination costs and fees are deferred upon origination and are recognized in the consolidated statements of income on the date of sale. |
Other Real Estate Owned ("OREO") | Other Real Estate Owned OREO consists of properties and other assets acquired through foreclosure proceedings or acceptance of a deed in lieu of foreclosure. OREO is recorded in other assets in consolidated balance sheets, on an individual asset basis at the lower of cost or fair value, less estimated selling costs. The Company relies primarily on third-party valuation information from certified appraisers and values are generally based upon recent appraisals of the underlying collateral, brokers’ opinions based upon recent sales of comparable properties, estimated equipment auction or liquidation values, income capitalization, or a combination of income capitalization and comparable sales. |
Federal Home Loan Bank Stock | Federal Home Loan Bank StockThe Company, as a member of the Federal Home Loan Bank ("FHLB") of Boston, is required to maintain an investment in capital stock of the FHLB. Based on redemption provisions, the stock has no quoted market value and is carried at cost. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Buildings, leasehold improvements and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the shorter of the lease terms or the estimated lives of the improvements. Expected lease terms include lease options to the extent that the exercise of such options is reasonably assured. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Acquisitions of businesses are accounted for using the acquisition method of accounting. Accordingly, the net assets of the companies acquired are recorded at their fair values at the date of acquisition. Goodwill represents the excess of purchase price over the fair value of net assets acquired. Other intangible assets represent acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights, or because the asset is capable of being sold or exchanged either on its own, or in combination with a related contract, asset, or liability. The Company evaluates goodwill for impairment at least annually, during the third quarter, or more often if warranted, using a quantitative impairment approach. The quantitative impairment test compares the book value to the fair value of each reporting unit. If the book value exceeds the fair value, an impairment is charged to net income. Management has identified two reporting units for purposes of testing goodwill for impairment: the banking business and the insurance agency business. Other intangible assets, all of which are definite-lived, are stated at cost less accumulated amortization. The Company evaluates other intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be fully recovered. The Company considers factors including, but not limited to, changes in legal factors and business climate that could affect the value of the intangible asset. Any impairment losses are charged to net income. The Company amortizes other intangible assets over their respective estimated useful lives. The estimated useful lives |
Retirement Plans, Employee Tax Deferred Incentive Plan, Defined Contribution Supplemental Executive Retirement Plan, and Deferred Compensation | Retirement Plans The Company provides benefits to its employees and executive officers through various retirement plans, including a defined benefit plan, a defined benefit supplemental executive retirement plan, a defined contribution plan, a benefit equalization plan, and an outside directors’ retainer continuance plan. Effective November 1, 2020, the defined benefit plan and the benefit equalization plan were amended to convert the plans from a traditional final average earnings plan design to a cash balance plan design. Benefits earned under the final average earnings plan design were frozen at October 31, 2020. Starting November 1, 2020, future benefits are earned under the cash balance plan design. The defined benefit plan benefits are provided through membership in the Savings Banks Employees’ Retirement Association (“SBERA”). The plan is a noncontributory, defined benefit plan (“Defined Benefit Plan”). Under the final average earnings plan design, benefits became fully vested after three years of eligible service for individuals employed on or before October 31, 1989. For individuals employed subsequent to October 31, 1989 and who were already in the Defined Benefit Plan as of November 1, 2020, benefits became fully vested after five years of eligible service. Under the cash balance plan design and for employees who were not already in the Defined Benefit Plan as of November 1, 2020, benefits become fully vested after three years of eligible service. The annual contribution to the Defined Benefit Plan is based upon standards established by the Pension Protection Act. The contribution is based on an actuarial method intended to provide not only for benefits attributable to service to date, but also for those expected to be earned in the future. The Company also has an unfunded Defined Benefit Supplemental Executive Retirement Plan (“DB SERP”) that provides certain retired and currently employed officers with defined pension benefits in excess of qualified plan limits imposed by U.S. federal tax law. The DB SERP has a plan year end of December 31. The Company also has an unfunded Benefit Equalization Plan (“BEP”) to provide retirement benefits to certain employees whose retirement benefits under the Defined Benefit Plan are limited per the Internal Revenue Code. The BEP has a plan year end of October 31. The Company also has an unfunded Outside Directors’ Retainer Continuance Plan (“ODRCP”) that provides pension benefits to outside directors who retire from service. The Outside Directors’ Retainer Continuance Plan has a plan year end of December 31. Effective December 31, 2020, the Company closed the ODRCP to new participants and froze benefit accruals for active participants. Plan assets are invested in various investment funds and held at fair value which generally represents observable market prices. Pension liability is determined based on the actuarial cost method factoring in assumptions such as salary increases, expected retirement date, mortality rate, and employee turnover. The actuarial cost method used to compute the pension liabilities and related expense is the projected unit credit method. The projected benefit obligation is principally determined based on the present value of the projected benefit distributions at an assumed discount rate (which is the rate at which the projected benefit obligation could be effectively settled as of the measurement date). The discount rate which is utilized is determined using the spot rate approach whereby the individual spot rates on the Financial Times and Stock Exchange (“FTSE”) above-median yield curve are applied to each corresponding year’s projected cash flow used to measure the respective plan’s service cost and interest cost. Periodic pension expense (or income) includes service costs, interest costs based on the assumed discount rate, the expected return on plan assets, if applicable, based on the market value of assets and amortization of actuarial gains and losses. Net period benefit cost excluding service cost is included within other noninterest expense in the consolidated statements of income. Service cost for all plans except the ODRCP is included in salaries and employee benefits in the consolidated statements of income. Service cost for the ODRCP is included in professional services in the consolidated statements of income. The amortization of actuarial gains and losses for the DB SERP and ODRCP is determined using the 10% corridor minimum amortization approach and is taken over the average remaining future service of the plan participants for the ODRCP, and over the average remaining future life expectancy of plan participants for the DB SERP. The amortization of actuarial gains and losses for the Defined Benefit Plan and BEP is determined without using the 10% corridor minimum amortization approach and is taken over the average remaining future service of the plan participants. The overfunded or underfunded status of the plans is recorded as an asset or liability on the consolidated balance sheets, with changes in that status recognized through other comprehensive income, net of related taxes. Funded status represents the difference between the projected benefit obligation of the plan and the market value of the plan’s assets. Employee Tax Deferred Incentive Plan The Company has an employee tax deferred incentive plan (“401(k)”) under which the Company makes voluntary contributions within certain limitations. All employees who meet specified age and length of service requirements are eligible to participate in the 401(k) plan. The amount contributed by the Company is included in salaries and employee benefits expense. Defined Contribution Supplemental Executive Retirement Plan The Company has a defined contribution supplemental executive retirement plan (“DC SERP”), which allows certain senior officers to earn benefits calculated as a percentage of their compensation. The participant benefits are adjusted based upon a deemed investment performance of measurement funds selected by the participant. These measurement funds are for tracking purposes and are used only to track the performance of a mutual fund, market index, savings instrument, or other designated investment or portfolio of investments. Deferred Compensation |
Employee Stock Ownership Plan ("ESOP") | Employee Stock Ownership Plan (“ESOP”) ESOP shares are shown as a reduction of equity and are presented in the consolidated statements of shareholders’ equity as unallocated common stock held by ESOP. Compensation expense for the Company’s ESOP is recorded at an amount equal to the shares committed to be allocated by the ESOP multiplied by the average fair market value of the shares during the year. The Company recognizes compensation expense ratably over the year based upon the Company’s estimate of the number of shares committed to be allocated by the ESOP. When the shares are released, unallocated common stock held by ESOP is reduced by the cost of the ESOP shares released and the difference between the average fair market value and the cost of the shares committed to be allocated by the ESOP is recorded as an adjustment to additional paid-in capital. The loan receivable from the ESOP is not reported as an asset nor is the Company’s guarantee to fund the ESOP reported as a liability on the Company’s consolidated balance sheet. |
Variable Interest Entities ("VIE") and Voting Interest Entities ("VOE"), Rabbi Trust and Tax Credit Investment | Variable Interest Entities (“VIE”) and Voting Interest Entities (“VOE”) The Company is involved in the normal course of business with various types of special purpose entities, some of which meet the definition for VIEs and VOEs. VIEs are entities that possess any of the following characteristics: 1) the total equity investment at risk is insufficient to permit the legal entity to finance its activities without additional subordinated financial support from other parties; 2) as a group, the holders of the equity investment at risk lack any of the characteristics of a controlling financial interest; or 3) the equity investors’ voting rights are not proportional to the economics, and substantially all of the activities of the entity either involve or are conducted on behalf of an investor that has disproportionately few voting rights. The Company consolidates entities deemed to be VIEs when it, or a wholly-owned subsidiary, is determined to be the primary beneficiary. The primary beneficiary analysis is a qualitative analysis based on power and economics. An enterprise has a controlling financial interest in a VIE if it has both 1) the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and 2) the obligation to absorb losses of the VIE that potentially could be significant to the VIE or the right to receive benefits from the VIE that potentially could be significant to the VIE. VOEs are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. The Company generally consolidates VOEs when it, or a wholly-owned subsidiary, holds the majority of the voting interest in the VOE. Rabbi Trusts The Company established rabbi trusts to meet its obligations under certain executive non-qualified retirement benefits and deferred compensation plans and to mitigate the expense volatility of the aforementioned retirement plans. The rabbi trusts are considered VIEs as the equity investment at risk is insufficient to permit the trust to finance its activities without additional subordinated financial support from the Company. The Company is considered the primary beneficiary of the rabbi trusts as it has the power to direct the activities of the rabbi trusts that significantly affect the rabbi trust’s economic performance and it has the obligation to absorb losses of the rabbi trusts that could potentially be significant to the rabbi trusts by virtue of its contingent call options on the rabbi trust’s assets in the event of the Company’s bankruptcy. As the primary beneficiary of these VIEs, the Company consolidates the rabbi trust investments. In general, the rabbi trust investments and any earnings received thereon are accumulated, reinvested and used exclusively for trust purposes. These rabbi trust investments consist primarily of cash and cash equivalents, U.S. government agency obligations, equity securities, mutual funds and other exchange-traded funds, and are recorded at fair value in the Company’s consolidated balance sheet. Changes in fair value are recorded in noninterest income in the statements of income. These rabbi trust assets are included within other assets in the Company’s consolidated balance sheet. Tax Credit Investment |
Bank Owned Life Insurance | Bank Owned Life Insurance The Company holds bank-owned life insurance on the lives of certain participating executives, primarily as a result of mergers and acquisitions of certain insurance agencies. The amount reported as an asset on the balance sheet is the sum of the cash surrender values reported to the Company by the various insurance carriers. Certain policies are split-dollar life insurance policies whereby the Company recognizes a liability for the postretirement benefit related to the arrangement. This postretirement benefit is included in other liabilities on the balance sheet. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are established for the temporary differences between the accounting basis and the tax basis of the Company’s assets and liabilities at enacted tax rates expected to be in effect when the amounts related to such temporary differences are realized or settled. A valuation allowance is established if it is considered more likely than not that all or a portion of the deferred tax assets will not be realized. Interest and penalties paid on the underpayment of income taxes are classified as income tax expense. |
Low Income Housing Tax Credits and Other Tax Credit Investments | Low Income Housing Tax Credits and Other Tax Credit Investments As part of its community reinvestment initiatives, the Company primarily invests in qualified affordable housing projects in addition to other tax credit investment projects. The Company receives low-income housing tax credits, investment tax credits, rehabilitation tax credits, solar tax credits and other tax credits as a result of its investments in these limited partnership investments. The Company accounts for its investments in qualified affordable housing projects using the proportional amortization method and amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits allocated to the Company. The amortization of the excess of the carrying amount of the investment over its estimated residual value is included as a component of income tax expense. At investment inception, the Company records a liability for the committed amount of the investment; this liability is reduced as contributions are made. |
Advertising Cost | Advertising Costs All advertising costs are expensed in the period in which they are incurred. Advertising costs were not significant for any periods presented. |
Insurance Commissions | Insurance Commissions Through Eastern Insurance Group LLC, the Company acts as an agent in offering property, casualty, and life and health insurance to both consumer and commercial customers. Insurance commissions consist of the several types of insurance revenue related to insurance policy sales. The Company earns a fixed commission on the sale of these insurance products and services and may occasionally earn a bonus commission if certain volume thresholds are met. The Company recognizes insurance commission revenues as performance obligations of underlying agreements are satisfied, which is typically the effective date of the insurance policy. Additionally, for certain types of insurance products, the Company may earn and recognize revenue related to the annual residual commissions commensurate with annual premiums being paid. The Company’s contracts typically contain a single, material distinct performance obligation, therefore the Company does not estimate standalone selling prices as the entire transaction price is allocated to the single performance obligation. |
Trust Operations | Trust Operations The Bank is a full-service trust company that provides a wide range of trust services to customers that includes managing customer investments, safekeeping customer assets, supplying disbursement services, and providing other fiduciary services. Trust assets held in a fiduciary or agency capacity for customers are not included in the accompanying consolidated balance sheets as they are not assets of the Company. The fees charged are variable based on various factors such as the Company’s responsibility, the type of account, and account size. Revenue from administrative and management activities associated with these assets is recognized as performance obligations of underlying agreements are satisfied. |
Derivative Financial Instruments | Derivative Financial Instruments Derivative instruments are carried at fair value in the Company’s financial statements. The accounting for changes in the fair value of a derivative instrument is determined by whether it has been designated and qualifies as part of a hedging relationship, and further, by the type of hedging relationship. At the inception of a hedge, the Company documents certain items, including, but not limited to, the following: the relationship between hedging instruments and hedged items, the Company’s risk management objectives, hedging strategies, and the evaluation of hedge transaction effectiveness. Documentation includes linking all derivatives that are designated as hedges to specific assets or liabilities on the balance sheet or to specific forecasted transactions. The Company’s derivative instruments that are designated and qualify for hedge accounting are classified as cash flow hedges (i.e., hedging the exposure to variability in expected future cash flows associated with a recognized asset or liability, or a forecasted transaction). As such, changes in the fair value of the designated hedging instrument that is included in the assessment of hedge effectiveness are recorded in other comprehensive income and reclassified into net income in the same period or periods during which the hedged forecasted transaction affects net income. Such reclassifications shall be presented in the same income statement line item as the net income effect of the hedged item. If the hedging instrument is not highly effective at achieving offsetting cash flows attributable to the revised contractually specified interest rate(s), hedge accounting will be discontinued. At that time, accumulated other comprehensive income would be frozen and amortized, as long as the forecasted transactions are still probable of occurring. If a cash flow hedge is terminated, hedge accounting treatment would be retained, and accumulated other comprehensive income would be frozen and amortized, as long as the forecasted transactions are still probable of occurring. The Company’s derivative instruments not designated as hedging instruments are recorded at fair value and changes in fair value are recognized in other noninterest income. Derivative instruments not designated as hedging instruments include interest rate swaps, foreign exchange contracts offered to commercial customers to assist them in meeting their financing and investing objectives for their risk management purposes, and risk participation agreements entered into as financial guarantees of performance on customer-related interest rate swap derivatives. The interest rate and foreign exchange risks associated with customer interest rate swaps and foreign exchange contracts are mitigated by entering into similar derivatives having offsetting terms with correspondent bank counterparties. |
Fair Value Measurements | Fair Value Measurements ASC 820 “ Fair Value Measurements and Disclosures ” (“ASC 820”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date. Market participants are buyers and sellers in the principal market that are independent, knowledgeable, able and willing to transact. ASC 820 also establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements), and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 – Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 – Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 – Prices or valuations that require unobservable inputs that reflect the Company’s own assumptions that are significant to the fair value measurement. |
Leases | Leases The Company leases certain office space and equipment under various non-cancelable operating leases, some of which have renewal options to extend lease terms. At lease inception, the Company evaluates the lease terms to determine if the lease should be classified as an operating lease or a finance lease and recognizes a right of use (“ROU”) asset and corresponding lease liability. The Company makes the decision on whether to renew an option to extend a lease by considering various factors. The Company will recognize an adjustment to its ROU asset and lease liability when lease agreements are amended and executed. The discount rate used in determining the present value of lease payments is based on the Company’s incremental borrowing rate for borrowings with terms similar to each lease at commencement date. The Company has lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. The Company has elected the short-term lease recognition exemption for all leases that qualify. |
Earnings Per Share | Earnings Per Share Basic earnings per share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Unallocated ESOP shares are not deemed outstanding for earnings per share calculations. ESOP shares committed to be released are considered to be outstanding for purposes of the earnings per share computation. ESOP shares that have not been legally released, but that relate to employee services rendered during an accounting period (interim or annual) ending before the related debt service payment is made, are considered committed to be released. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options awards and are determined using the treasury stock method. |
Segment Reporting | Segment ReportingAn operating segment is defined as a component of a business for which separate financial information is available that is evaluated regularly by the chief operating decision-maker (“CODM”) in deciding how to allocate resources and evaluate performance. The Company has determined that its CODM is its President and Chief Executive Officer. The Company has two reportable segments: its banking business, which consists of a full range of banking lending, savings, and small business offerings, and its wealth management and trust operations; and its insurance agency business, which consists of insurance-related activities. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company qualifies as an emerging growth company under the Jumpstart Our Business Act of 2012 (“JOBS Act”) and has elected to defer the adoption of new or revised accounting standards until the nonpublic company effective dates. Relevant standards that were recently issued but not yet adopted as of December 31, 2020: In March 2020, the FASB issued ASU 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ( “ASU 2020-4”) . This update addresses optional expedients and exceptions for applying GAAP to certain contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The new guidance applies only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. For public and nonpublic entities, the guidance is effective as of March 12, 2020 through December 31, 2022 and does not apply to contract modifications made after December 31, 2022. The Company will adopt this standard on the nonpublic company effective date and is currently in the process of reviewing its contracts and existing processes in order to assess the risks and potential impact of the transition away from LIBOR. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848) ( “ASU 2021-1”) which expands the scope of guidance in ASC 848 so that companies can apply the optional expedients to derivative instruments affected by the clearinghouse changes. ASU 2021-01 also clarifies and updates several items in ASU 2020- 04 as part of the Board of Director’s monitoring of global reference rate reform activities. ASU 2021-01 permits entities to elect certain optional expedients and exceptions to modifications of interest rate indexes used for discounting, margining, or contract price alignment of derivative contracts and certain hedging relationships. ASU 2021-01 clarifies other aspects of the guidance in ASC 848 and provides new guidance on how to address the effects of the cash compensation adjustment that is provided as part of the above change on certain aspects of hedge accounting. The guidance was effective upon issuance and allows for retrospective or prospective application with certain conditions. The Company did not elect retrospective application. The adoption of this update did not have a material impact on its Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments–Credit Losses on Financial Instruments and relevant amendments (Topic 326) (“ASU 2016-13”). This update was created to replace the current GAAP method of calculating credit losses. Specifically, the standard replaces the existing incurred loss impairment guidance by requiring immediate recognition of expected credit losses. For financial assets carried at amortized cost that are held at the reporting date (including trade and other receivables, loans and commitments, held-to-maturity debt securities and other financial assets), credit losses are measured based on historical experience, current conditions and reasonable supportable forecasts. The standard also amends existing impairment guidance for available for sale securities, in which credit losses will be recorded as an allowance versus a write-down of the amortized cost basis of the security. It will also allow for a reversal of impairment loss when the credit of the issuer improves. The guidance requires a cumulative effect of the initial application to be recognized in retained earnings at the date of initial application. In November 2018, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses ( “Update 2018-19”). The amendments in Update No. 2018-19 were intended to clarify that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases (See further discussion below). In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses . This update requires entities to include expected recoveries of the amortized cost basis previously written off or expected to be written off in the valuation account for purchased financial assets with credit deterioration. In addition, the amendments in this update clarify and improve various aspects of the guidance for ASU 2016-13. For public entities that meet the definition of an SEC filer (excluding smaller reporting entities) the guidance is effective for annual reporting periods beginning after December 15, 2019. Early adoption is permitted for all entities as of the fiscal years beginning after December 15, 2018. For all other entities, the guidance is effective for annual reporting periods beginning after December 15, 2022, including interim periods within those fiscal years. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted in response to the COVID-19 pandemic in the United States to provide economic relief measures including the option to defer adoption of ASU 2016-13 to the earlier of the ending of the national emergency declaration related to the COVID-19 crisis or December 31, 2020. On December 27, 2020, the Consolidated Appropriations Act (the “Appropriations Act”) was enacted to fund the federal government through their fiscal year, extend certain expiring tax provisions and provide additional emergency relief to individuals and businesses related to the COVID-19 pandemic in the United States. Included within the provisions of the Appropriations Act is an extension of the adoption date for ASU 2016-13 from December 31, 2020 to the earlier of January 1, 2022 or 60 days after the date on which the COVID-19 national emergency terminates. The Company anticipates deferring adoption of this standard to January 1, 2022. To address the impact of ASU 2016-13, the Company has formed a committee, including the Chief Credit Officer, the Chief Financial Officer, and Chief Information Officer, to assist in identifying, implementing, and evaluating the impact of the required changes to loan loss estimation models and processes. The Company has evaluated portfolio segmentation and is currently evaluating methodologies and the control environment under the new standard. A third party has been engaged to assist the Company in project management, documentation, model governance and related internal controls implementation. The Company is currently assessing the impact of the new standard on its Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20) Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans (“ASU 2018-14”). This update modifies the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. The guidance eliminates requirements for certain disclosures that are no longer considered cost beneficial and requires new ones that the FASB considers pertinent. For public companies, ASU 2018-14 is effective for fiscal years ending after December 15, 2020. For nonpublic companies, ASU 2018-14 is effective for fiscal years ending after December 15, 2021. Early adoption is permitted. The Company will adopt this standard on the nonpublic company effective date. The Company expects the adoption of this standard will not have a material impact on its Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15, Intangibles–Goodwill and Other–Internal-use software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract (“ASU 2018-15”).This update addresses accounting for fees paid by a customer for implementation, set-up and other upfront costs incurred in a cloud computing arrangement that is hosted by the vendor (i.e., a service contract). The new guidance aligns treatment for capitalization of implementation costs with guidance on internal-use software. For public entities, the guidance is effective for annual reporting periods beginning after December 15, 2019. For nonpublic entities, the guidance is effective for annual reporting periods beginning after December 15, 2020, and for all interim periods beginning after December 15, 2021. The Company will adopt this standard on the nonpublic company effective date and is currently assessing the impact of the new standard on its Consolidated Financial Statements. Relevant standards that were adopted during the year ended December 31, 2020: In February 2016, the FASB issued ASU 2016-2, Leases (Topic 842) (“ASU 2016-2”). Topic 842 was subsequently amended by ASU 2018-1, Land Easement Practical Expedient for Transition to Topic 842 (“ASU 2018-1”); ASU 2018-10, Codification Improvements to Topic 842, Leases (“ASU 2018-10”); ASU 2018-11, Targeted Improvements (“ASU 2018-11”); and ASU 2018-20 Leases (Topic 842): Narrow-Scope Improvements for Lessors (“ASU 2018-20”). ASU 2018-1 permits an entity to elect an optional transition practical expedient to not evaluate under Topic 842 land easements that exist or expired before the entity’s adoption of Topic 842 and that were not previously accounted for as leases under Topic 840. ASU 2018-10 was issued to clarify the Accounting Standards Codification (“Codification”) or to correct unintended application of guidance within ASU 2016-2. ASU 2018-11 allows for an optional transition method in which the provisions of Topic 842 would be applied upon the adoption date and would not have to be retroactively applied to the earliest reporting period presented in the Consolidated Financial Statements. Lastly, ASU 2018-20 provided narrow-scope improvements for lessors, which was issued to increase transparency and comparability among organizations. ASU 2016-2 and the several additional amendments thereto are collectively referred to herein as ASC 842. ASC 842 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The standard represents a wholesale change to lease accounting and requires all leases with a term longer than 12 months to be reported on the balance sheet through recognition of a ROU asset and a corresponding liability for future lease obligations. Leases will be classified as financing or operating, with classification affecting the pattern and grouping of expenses in the income statement. The standard also requires extensive disclosures for assets, expenses, and cash flows associated with leases, as well as a maturity analysis of lease liabilities. In November 2019, the FASB issued guidance delaying the effective date for all entities except for public business entities that are SEC filers. For public business entities the guidance was effective for fiscal year beginning after December 15, 2018, and for all other entities the guidance is effective for fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities. The Company early adopted this standard on January 1, 2020. In accordance with ASU 2018-11, the Company used the effective date as the date of application and, therefore, periods prior to January 1, 2020, were not restated. The new standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients,” which permitted the Company to not reassess prior conclusions about lease identification, lease classification, and initial direct costs under ASC 842. The Company also elected the hindsight practical expedient and, therefore, used the hindsight knowledge as of the effective date when determining lease terms and impairment. In addition, the Company elected the practical expedient to not separate lease and non-lease components and, therefore, accounts for each separate lease component of a contract and its associated non-lease components as a single lease component. The new standard also provides a practical expedient for an entity’s ongoing accounting relating to leases of 12 months or less (“short-term leases”). The Company has elected the short-term lease recognition exemption for all leases that qualify and will not recognize ROU assets and lease liabilities for those leases. The adoption of this standard resulted in the recognition of ROU assets and lease liabilities on the Company’s balance sheet for its real estate and equipment operating leases of $92.9 million and $96.4 million, respectively. The Company recorded an adjustment to remove the Company’s existing deferred rent liability of approximately $3.5 million. The Company also recognized a transition adjustment to the opening balance of retained earnings on January 1, 2020 amounting to $1.1 million, net of tax, related to an incremental accrued rent adjustment calculated as a result of electing the hindsight practical expedient. The amount of ROU assets were determined based upon the present value of the remaining minimum rental payments under current leasing standards for existing operating leases, adjusted for options that the Company is reasonably certain to exercise, less accrued rent as of December 31, 2019 and the incremental accrued rent as a result of electing the hindsight practical expedient. Lastly, the amount of lease liabilities was determined based upon the present value of the remaining minimum rental payments under current leasing standards for existing operating leases, adjusted for options that the Company is reasonably certain to exercise. See Note 7, “Leases” for further discussion of the impact to the Company’s Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”) . This update modifies the disclosure requirements related to the fair value measurements in Topic 820. Specifically, this update amends disclosure around changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used in Level 3 fair value measurements and the description of measurement uncertainty. The Company adopted ASU 2018-13 on January 1, 2020. The adoption of this update did not have a material impact on its Consolidated Financial Statements. In October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (“ASU 2018-16”). This update permits the use of the Overnight Index Swap (“OIS”) rate based on the Secured Overnight Financing Rate (“SOFR”) as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815. The amendments should be adopted on a prospective basis for qualifying new or re-structured hedging relationships entered into on or after the date of adoption. The Company adopted this standard on January 1, 2020. The adoption of this update did not have a material impact on its Consolidated Financial Statements. |
Mergers and Acquisitions (Table
Mergers and Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair value of the assets acquired and liabilities assumed for the business combination described above: Balance (In Thousands) Assets acquired: Customer list intangible $ 1,130 Non-compete intangible 80 Total assets acquired 1,210 Consideration: Total cash paid (1,363) Contingent consideration (293) Total fair value of consideration (1,656) Goodwill $ 446 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Securities [Abstract] | |
Summary Of Debt Securities | The amortized cost, gross unrealized gains and losses, and fair value of available for sale securities as of the dates indicated were as follows: As of December 31, 2020 Amortized Unrealized Unrealized Fair (In Thousands) Debt securities: Government-sponsored residential mortgage-backed securities $ 2,106,658 $ 42,142 $ — $ 2,148,800 Government-sponsored commercial mortgage-backed securities 17,054 27 — 17,081 U.S. Agency bonds 670,468 113 (3,872) 666,709 U.S. Treasury securities 70,106 263 — 70,369 State and municipal bonds and obligations 260,898 20,004 — 280,902 $ 3,125,184 $ 62,549 $ (3,872) $ 3,183,861 As of December 31, 2019 Amortized Unrealized Unrealized Fair (In Thousands) Debt securities: Government-sponsored residential mortgage-backed securities $ 1,151,305 $ 17,208 $ (545) $ 1,167,968 U.S. Treasury securities 50,155 265 — 50,420 State and municipal bonds and obligations 272,582 10,959 (3) 283,538 Qualified zone academy bond 6,155 155 — 6,310 $ 1,480,197 $ 28,587 $ (548) $ 1,508,236 |
Summary Of Fair Value Of Available For Sale Securities By Contractual Maturities | The amortized cost and estimated fair value of available for sale securities by contractual maturities as of December 31, 2020 and 2019 are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without prepayment penalties. The scheduled contractual maturities of available for sale securities as of the dates indicated were as follows: As of December 31, 2020 Due in one year or less Due after one year to five years Due after five to ten years Due after ten years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value (In Thousands) Government-sponsored residential mortgage-backed securities $ — $ — $ 46,293 $ 48,925 $ 96,338 $ 100,278 $ 1,964,027 $ 1,999,597 $ 2,106,658 $ 2,148,800 Government-sponsored commercial mortgage-backed securities — — — — 17,054 17,081 — — 17,054 17,081 U.S. Agency bonds — — 99,772 99,834 570,696 566,875 — — 670,468 666,709 U.S. Treasury securities 50,023 50,251 20,083 20,118 — — — — 70,106 70,369 State and municipal bonds and obligations 406 408 20,511 21,431 74,980 79,635 165,001 179,428 260,898 280,902 Total $ 50,429 $ 50,659 $ 186,659 $ 190,308 $ 759,068 $ 763,869 $ 2,129,028 $ 2,179,025 $ 3,125,184 $ 3,183,861 As of December 31, 2019 Due in one year or less Due after one year to five years Due after five to ten years Due after ten years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value (In Thousands) Government-sponsored residential mortgage-backed securities $ — $ — $ 8,139 $ 8,464 $ 199,428 $ 203,706 $ 943,738 $ 955,798 $ 1,151,305 $ 1,167,968 U.S. Treasury securities 40 40 50,115 50,380 — — — — 50,155 50,420 State and municipal bonds and obligations 381 381 8,889 9,109 77,227 79,504 186,085 194,544 272,582 283,538 Qualified zone academy bond 6,155 6,310 — — — — — — 6,155 6,310 Total $ 6,576 $ 6,731 $ 67,143 $ 67,953 $ 276,655 $ 283,210 $ 1,129,823 $ 1,150,342 $ 1,480,197 $ 1,508,236 |
Summary Of Government-Sponsored Residential Mortgage-Backed Securities With Gross Unrealized Losses | Information pertaining to available for sale securities with gross unrealized losses as of December 31, 2020 and 2019, which the Company has not deemed to be OTTI, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: December 31, 2020 Less than 12 Months 12 Months or Longer Total # of Gross Fair Gross Fair Gross Fair (Dollars In Thousands) U.S. Agency bonds 6 $ 3,872 $ 416,824 $ — $ — $ 3,872 $ 416,824 6 $ 3,872 $ 416,824 $ — $ — $ 3,872 $ 416,824 December 31, 2019 Less than 12 Months 12 Months or Longer Total # of Gross Fair Gross Fair Gross Fair (Dollars In Thousands) Government-sponsored residential mortgage-backed securities 1 $ 545 $ 74,550 $ — $ — $ 545 $ 74,550 State and municipal bonds and obligations 2 3 850 — — 3 850 3 $ 548 $ 75,400 $ — $ — $ 548 $ 75,400 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Summary of Financing Receivable Composition of Loan Portfolio | The following table provides a summary of the Company’s loan portfolio as of the dates indicated: As of December 31, 2020 2019 (In thousands) Commercial and industrial $ 1,995,016 $ 1,642,184 Commercial real estate 3,573,630 3,535,441 Commercial construction 305,708 273,774 Business banking 1,339,164 771,498 Residential real estate 1,370,957 1,428,630 Consumer home equity 868,270 933,088 Other consumer 277,780 402,431 Gross loans before unamortized premiums, unearned discounts and deferred fees 9,730,525 8,987,046 Allowance for credit losses (113,031) (82,297) Unamortized premiums, net of unearned discounts and deferred fees (23,536) (5,565) Loans after the allowance for credit losses, unamortized premiums, unearned discounts and deferred fees $ 9,593,958 $ 8,899,184 |
Summary of the changes in the allowance for loan losses | The following table summarizes the changes in the allowance for loan losses for the periods indicated: For the Year Ended December 31, 2020 2019 2018 (In thousands) Balance at the beginning of period $ 82,297 $ 80,655 $ 74,111 Loans charged off (9,853) (9,499) (12,461) Recoveries 1,787 4,841 3,905 Provision for loan losses 38,800 6,300 15,100 Balance at end of period $ 113,031 $ 82,297 $ 80,655 |
Summary of allowance for credit losses on financing receivables by loan category | The following tables summarize changes in the allowance for loan losses by loan category and bifurcates the amount of allowance allocated to each loan category based on collective impairment analysis and loans evaluated individually for impairment: For the Year Ended December 31, 2020 Commercial Commercial Commercial Business Residential Consumer Other Other Total (In thousands) Allowance for loan losses: Beginning balance $ 20,919 $ 34,730 $ 3,424 $ 8,260 $ 6,380 $ 4,027 $ 4,173 $ 384 $ 82,297 Charge-offs (1,770) (24) — (5,147) — (574) (2,338) — (9,853) Recoveries 778 230 — 292 125 153 209 — 1,787 Provision (benefit) 6,690 19,633 1,129 9,747 (70) 138 1,423 110 38,800 Ending balance $ 26,617 $ 54,569 $ 4,553 $ 13,152 $ 6,435 $ 3,744 $ 3,467 $ 494 $ 113,031 Ending balance: individually evaluated for impairment $ 4,555 $ 210 $ — $ 1,435 $ 1,565 $ 289 $ — $ — $ 8,054 Ending balance: acquired with deteriorated credit quality $ 1,283 $ 822 $ — $ — $ 327 $ — $ — $ — $ 2,432 Ending balance: collectively evaluated for impairment $ 20,779 $ 53,537 $ 4,553 $ 11,717 $ 4,543 $ 3,455 $ 3,467 $ 494 $ 102,545 Loans ending balance: Individually evaluated for impairment $ 17,343 $ 4,435 $ — $ 21,901 $ 27,056 $ 4,845 $ 29 $ — $ 75,609 Acquired with deteriorated credit quality 3,432 2,749 — — 3,116 — — — 9,297 Collectively evaluated for impairment 1,974,241 3,566,446 305,708 1,317,263 1,340,785 863,425 277,751 — 9,645,619 Total loans by group $ 1,995,016 $ 3,573,630 $ 305,708 $ 1,339,164 $ 1,370,957 $ 868,270 $ 277,780 $ — $ 9,730,525 For the Year Ended December 31, 2019 Commercial Commercial Commercial Business Residential Consumer Other Other Total (In thousands) Allowance for loan losses: Beginning balance $ 19,321 $ 32,400 $ 4,606 $ 8,167 $ 7,059 $ 4,113 $ 4,600 $ 389 $ 80,655 Charge-offs (1,123) — — (5,974) (66) (205) (2,131) — (9,499) Recoveries 3,748 12 — 604 105 52 320 — 4,841 Provision (benefit) (1,027) 2,318 (1,182) 5,463 (718) 67 1,384 (5) 6,300 Ending balance $ 20,919 $ 34,730 $ 3,424 $ 8,260 $ 6,380 $ 4,027 $ 4,173 $ 384 $ 82,297 Ending balance: individually evaluated for impairment $ 2,337 $ 40 $ — $ 571 $ 1,399 $ 322 $ — $ — $ 4,669 Ending balance: acquired with deteriorated credit quality $ 936 $ — $ — $ — $ 256 $ — $ — $ — $ 1,192 Ending balance: collectively evaluated for impairment $ 17,646 $ 34,690 $ 3,424 $ 7,689 $ 4,725 $ 3,705 $ 4,173 $ 384 $ 76,436 Loans ending balance: Individually evaluated for impairment $ 32,370 $ 7,641 $ — $ 11,658 $ 29,532 $ 6,555 $ — $ — $ 87,756 Acquired with deteriorated credit quality 3,571 6,459 — — 3,421 — — — 13,451 Collectively evaluated for impairment 1,606,243 3,521,341 273,774 759,840 1,395,677 926,533 402,431 — 8,885,839 Total loans by group $ 1,642,184 $ 3,535,441 $ 273,774 $ 771,498 $ 1,428,630 $ 933,088 $ 402,431 $ — $ 8,987,046 |
Summary of details the internal risk-rating categories for the Company's commercial and industrial, commercial real estate, commercial construction and business banking portfolios | The following tables detail the internal risk-rating categories for the Company’s commercial and industrial, commercial real estate, commercial construction and business banking portfolios: As of December 31, 2020 Category Commercial and Commercial Commercial Business Total Unrated $ 655,346 $ 6,585 $ — $ 918,921 $ 1,580,852 Pass 1,199,522 3,256,697 280,792 336,657 5,073,668 Special mention 78,117 134,562 10,330 57,092 280,101 Substandard 47,525 173,308 14,586 24,788 260,207 Doubtful 14,506 2,478 — 1,706 18,690 Loss — — — — — Total $ 1,995,016 $ 3,573,630 $ 305,708 $ 1,339,164 $ 7,213,518 As of December 31, 2019 Category Commercial and Commercial Commercial Business Total Unrated $ 150,226 $ 48,266 $ 331 $ 445,201 $ 644,024 Pass 1,405,902 3,436,267 260,615 315,194 5,417,978 Special mention 24,171 28,606 9,438 2,006 64,221 Substandard 42,894 21,635 3,390 8,207 76,126 Doubtful 18,991 667 — 890 20,548 Loss — — — — — Total $ 1,642,184 $ 3,535,441 $ 273,774 $ 771,498 $ 6,222,897 |
Summary pertaining to the breakdown of the Company's nonaccrual loans | The following is a summary pertaining to the breakdown of the Company’s non-accrual loans: As of December 31, 2020 2019 (In thousands) Commercial and industrial $ 11,714 $ 21,471 Commercial real estate 915 4,120 Commercial construction — — Business banking 17,430 8,502 Residential real estate 6,815 5,598 Consumer home equity 3,602 2,137 Other consumer 529 623 Total non-accrual loans $ 41,005 $ 42,451 |
Summary of age analysis of past due loans | The following tables show the age analysis of past due loans as of the dates indicated: As of December 31, 2020 30-59 60-89 90 or More Total Past Current Total Recorded (In thousands) Commercial and industrial $ 4 $ 268 $ 1,924 $ 2,196 $ 1,992,820 $ 1,995,016 $ 848 Commercial real estate — 556 1,545 2,101 3,571,529 3,573,630 1,111 Commercial construction — — — — 305,708 305,708 — Business banking 5,279 3,311 10,196 18,786 1,320,378 1,339,164 — Residential real estate 9,184 2,517 4,904 16,605 1,354,352 1,370,957 279 Consumer home equity 1,806 364 3,035 5,205 863,065 868,270 9 Other consumer 1,978 234 517 2,729 275,051 277,780 — Total $ 18,251 $ 7,250 $ 22,121 $ 47,622 $ 9,682,903 $ 9,730,525 $ 2,247 As of December 31, 2019 30-59 60-89 90 or More Total Past Current Total Recorded (In thousands) Commercial and industrial $ 1,407 $ — $ 963 $ 2,370 $ 1,639,814 $ 1,642,184 $ — Commercial real estate 1,290 100 1,856 3,246 3,532,195 3,535,441 1,315 Commercial construction — — — — 273,774 273,774 — Business banking 3,031 763 6,095 9,889 761,609 771,498 — Residential real estate 14,030 2,563 3,030 19,623 1,409,007 1,428,630 — Consumer home equity 2,497 430 1,636 4,563 928,525 933,088 9 Other consumer 3,451 514 579 4,544 397,887 402,431 — Total $ 25,706 $ 4,370 $ 14,159 $ 44,235 $ 8,942,811 $ 8,987,046 $ 1,324 |
Summary of TDR loans on accrual and nonaccrual status | The following table shows the TDR loans on accrual and non-accrual status as of the dates indicated: As of December 31, 2020 TDRs on Accrual Status TDRs on Non-accrual Status Total TDRs Number of Loans Balance of Number of Balance of Number of Balance of (Dollars in thousands) Commercial and industrial 1 $ 5,628 7 $ 6,819 8 $ 12,447 Commercial real estate 1 3,521 1 480 2 4,001 Business banking 6 4,471 6 722 12 5,193 Residential real estate 146 23,416 27 3,273 173 26,689 Consumer home equity 91 4,030 12 815 103 4,845 Other consumer 3 29 — — 3 29 Total 248 $ 41,095 53 $ 12,109 301 $ 53,204 As of December 31, 2019 TDRs on Accrual Status TDRs on Non-accrual Status Total TDRs Number of Loans Balance of Number of Loans Balance of Number of Loans Balance of (Dollars in thousands) Commercial and industrial 4 $ 10,899 14 $ 19,781 18 $ 30,680 Commercial real estate 1 3,520 3 3,338 4 6,858 Business banking 2 3,156 1 204 3 3,360 Residential real estate 152 25,093 27 3,977 179 29,070 Consumer home equity 89 5,955 5 600 94 6,555 Total 248 $ 48,623 50 $ 27,900 298 $ 76,523 |
Summary of the modifications which occurred during the periods and the change in the recorded investment subsequent to the modifications occurring | The following tables show the modifications which occurred during the periods and the change in the recorded investment subsequent to the modifications occurring: For the Year Ended December 31, 2020 2019 2018 Number Pre- Post- Number Pre- Post- Number Pre- Post- (Dollars in thousands) Commercial and industrial 1 $ 140 $ 140 16 $ 18,912 $ 19,212 7 $ 5,926 $ 6,786 Commercial real estate 1 506 506 2 3,277 3,277 — — — Business banking 6 1,642 1,642 2 3,184 3,184 — — — Residential real estate 6 920 920 11 2,659 2,696 14 2,235 2,278 Consumer home equity 22 969 973 9 2,053 2,392 10 1,122 1,128 Other consumer 4 58 58 — — — — — — Total 40 $ 4,235 $ 4,239 40 $ 30,085 $ 30,761 31 $ 9,283 $ 10,192 (1) The post-modification balances represent the balance of the loan on the date of modification. These amounts may show an increase when modification includes capitalization of interest. |
Summary of postmodification balance of troubled debt restructuring listed by type of modification | The following table shows the Company’s post-modification balance of TDRs listed by type of modification during the periods indicated: For the Year Ended December 31, 2020 2019 2018 (In thousands) Adjusted interest rate and extended maturity $ — $ 1,513 $ 1,338 Adjusted interest rate and principal deferred — 39 715 Adjusted interest rate — 3,352 676 Interest only/principal deferred 1,305 2,769 5,926 Extended maturity 35 — — Extended maturity and interest only/principal deferred 427 47 677 Additional underwriting- increased exposure — 10,822 — Principal and interest deferred 422 — — Court-ordered concession 1,995 355 — Subordination — 11,032 — Other 55 832 860 Total $ 4,239 $ 30,761 $ 10,192 |
Summary of troubled debt restructurings on financing receivables loans modified as Tdrs in the past twelve months that have subsequently defaulted | The following table shows the loans that have been modified during the prior 12 months which have subsequently defaulted during the periods indicated. The Company considers a loan to have defaulted when it reaches 90 days past due or is transferred to non-accrual: For the Year Ended December 31, 2020 2019 2018 Number of Recorded Number of Recorded Number of Recorded (Dollars in thousands) Troubled debt restructurings that subsequently defaulted (1): Commercial and industrial — $ — 10 $ 18,808 — $ — Commercial real estate — — 2 3,125 — — Residential real estate — — — — 1 144 Consumer home equity 1 40 — — 1 116 Total 1 $ 40 12 $ 21,933 2 $ 260 (1) This table does not reflect any TDRs which were fully charged off, paid off, or otherwise settled during the period. |
summary of company's impaired loans by loan portfolio | The following table summarizes the Company’s impaired loans by loan portfolio as of the dates indicated: As of December 31, 2020 2019 Recorded Unpaid Related Recorded Unpaid Related (In thousands) With no related allowance recorded: Commercial and industrial $ 9,182 $ 11,212 $ — $ 22,074 $ 22,819 $ — Commercial real estate 3,955 3,974 — 7,553 7,808 — Business banking 5,250 7,659 — 2,738 4,062 — Residential real estate 14,730 17,010 — 16,517 17,858 — Consumer home equity 2,571 2,571 — 3,666 3,697 — Other consumer 29 29 — — — — Sub-total 35,717 42,455 — 52,548 56,244 — With an allowance recorded: Commercial and industrial 8,161 8,432 4,555 10,296 10,503 2,337 Commercial real estate 480 497 210 88 90 40 Business banking 16,651 21,146 1,435 8,920 13,176 571 Residential real estate 12,326 12,326 1,565 13,015 14,072 1,399 Consumer home equity 2,274 2,274 289 2,889 2,913 322 Sub-total 39,892 44,675 8,054 35,208 40,754 4,669 Total $ 75,609 $ 87,130 $ 8,054 $ 87,756 $ 96,998 $ 4,669 |
Summary of information regarding interest income recognized on impaired loans | The following tables display information regarding interest income recognized on impaired loans, by portfolio, for the periods indicated: For the Year Ended December 31, 2020 2019 2018 Average Total Average Total Average Total (In thousands) With no allowance recorded: Commercial and industrial $ 12,941 $ 206 $ 17,695 $ 615 $ 10,797 $ 429 Commercial real estate 5,124 179 9,987 179 8,993 328 Business banking 3,008 92 2,072 70 1,298 — Residential real estate 14,654 589 15,501 671 11,880 470 Consumer home equity 3,299 87 2,869 124 1,944 81 Other consumer 36 1 — — — — Sub-total 39,062 1,154 48,124 1,659 34,912 1,308 With an allowance recorded: Commercial and industrial 7,947 — 6,141 — 5,647 — Commercial real estate 644 — 391 — 919 — Business banking 13,663 62 7,730 86 7,015 — Residential real estate 12,194 521 12,215 528 16,072 636 Consumer home equity 2,334 77 2,261 99 2,629 111 Other consumer — — — — — — Sub-total 36,782 660 28,738 713 32,282 747 Total $ 75,844 $ 1,814 $ 76,862 $ 2,372 $ 67,194 $ 2,055 |
Summary of outstanding and carrying amounts of Purchased credit impaired loans | The following table displays the outstanding and carrying amounts of PCI loans as of the dates indicated: As of December 31, 2020 2019 (In Thousands) Outstanding balance $ 9,982 $ 15,149 Carrying amount 9,297 13,451 |
Summary of activity in the accretable yield for the PCI loan portfolio | The following table summarizes activity in the accretable yield for the PCI loan portfolio: For the Year Ended December 31, 2020 2019 2018 Balance at beginning of period $ 3,923 $ 6,161 $ 7,618 Acquisition — — — Accretion (1,374) (2,132) (2,559) Other change in expected cash flows (185) (898) (680) Reclassification (to) from non-accretable difference for loans with (deteriorated) improved cash flows 131 792 1,782 Balance at end of period $ 2,495 $ 3,923 $ 6,161 |
Summary of the Company's loan participations | The following table summarizes the Company’s loan participations: As of and for the Year Ended December 31, 2020 2019 Balance Non-performing Impaired Gross Balance Non-performing Impaired Gross (Dollars in thousands) Commercial and industrial $ 598,873 1.11 % 1.11 % $ — $ 586,346 2.76 % 2.76 % $ — Commercial real estate 306,202 0.00 % 0.00 % — 314,487 0.00 % 0.00 % — Commercial construction 119,600 0.00 % 0.00 % — 64,259 0.00 % 0.00 % — Business banking 34 0.00 % 0.00 % 15 57 0.00 % 0.00 % — Total loan participations $ 1,024,709 0.65 % 0.65 % $ 15 $ 965,149 1.68 % 1.68 % $ — |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | The following table summarizes the Company’s premises and equipment: As of December 31, Estimated 2020 2019 Useful Life (In thousands) (In years) Premises and equipment used in operations: Land $ 7,410 $ 7,410 N/A Buildings 58,112 57,075 5-30 Equipment 55,919 57,720 3-5 Leasehold improvements 34,561 35,447 5-25 Total cost 156,002 157,652 Accumulated depreciation (107,334) (101,085) Premises and equipment used in operations, net 48,668 56,567 Premises and equipment held for sale (1) 730 886 Net premises and equipment $ 49,398 $ 57,453 (1) The Company classified a branch location as held for sale |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Summary of Lease Cost | As of December 31, 2020, the Company had the following related to operating leases: As of December 31, 2020 (In thousands) Right-of-use assets $ 81,596 Lease liabilities 85,330 The following table is a summary of the Company’s components of net lease cost for the year ended December 31, 2020: For the Year Ended December 31, 2020 (In thousands) Operating lease cost $ 14,402 Finance lease cost 71 Variable lease cost 1,982 Total lease cost $ 16,455 |
Summary of Other Information Related to Leases | Supplemental balance sheet information related to operating leases as of December 31, 2020 is as follows: As of December 31, 2020 Weighted-average remaining lease term (in years) 8.50 Weighted-average discount rate 2.65 % |
Schedule of Future Minimum Lease Payments | The following table sets forth the undiscounted cash flows of base rent related to operating leases outstanding at December 31, 2020 with payments scheduled over the next five years and thereafter, including a reconciliation to the operating lease liability recognized in other liabilities in the Company’s consolidated balance sheet: Year (In thousands) 2021 $ 13,748 2022 12,733 2023 12,190 2024 11,430 2025 10,575 Thereafter 35,070 Total minimum lease payments 95,746 Less: amount representing interest 10,416 Present value of future minimum lease payments $ 85,330 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill and Other Intangible Assets | The following tables set forth the carrying amount of goodwill and other intangible assets, net of accumulated amortization by reporting unit at the dates indicated below: As of December 31, 2020 Banking Insurance Net (In thousands) Balances not subject to amortization Goodwill $ 298,611 $ 70,866 $ 369,477 Balances subject to amortization Insurance agency — 6,899 6,899 Core deposits 158 — 158 Total other intangible assets 158 6,899 7,057 Total goodwill and other intangible assets $ 298,769 $ 77,765 $ 376,534 As of December 31, 2019 Banking Insurance Net (In thousands) Balances not subject to amortization Goodwill $ 298,611 $ 70,420 $ 369,031 Balances subject to amortization Insurance agency — 7,949 7,949 Core deposits 754 — 754 Total other intangible assets 754 7,949 8,703 Total goodwill and other intangible assets $ 299,365 $ 78,369 $ 377,734 |
Schedule of Goodwill Carrying Value | The changes in the carrying value of goodwill for the periods indicated were as follows: For the Year Ended December 31, 2020 Banking Insurance Net (In thousands) Balance at beginning of year $ 298,611 $ 70,420 $ 369,031 Goodwill recorded during the year — 446 446 Goodwill disposed of during the year — — — Balance at end of year $ 298,611 $ 70,866 $ 369,477 For the Year Ended December 31, 2019 Banking Insurance Net (In thousands) Balance at beginning of year $ 298,611 $ 70,420 $ 369,031 Goodwill recorded during the year — — — Goodwill disposed of during the year — — — Balance at end of year $ 298,611 $ 70,420 $ 369,031 |
Summary of Carrying Amount and Accumulated Amortization of Other Intangible Assets | The gross carrying amount and accumulated amortization of other intangible assets were as follows at the dates indicated: As of December 31, 2020 2019 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net (In thousands) Insurance agency $ 28,515 $ (21,616) $ 6,899 $ 27,305 $ (19,356) $ 7,949 Core deposits 6,579 (6,421) 158 6,579 (5,825) 754 Total $ 35,094 $ (28,037) $ 7,057 $ 33,884 $ (25,181) $ 8,703 |
Schedule of Amortization Expense | The estimated amortization expense for each of the five succeeding years and thereafter is as follows: Year (In thousands) 2021 $ 2,125 2022 1,606 2023 1,174 2024 878 2025 603 Thereafter 671 Total amortization expense $ 7,057 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Banking and Thrift, Interest [Abstract] | |
Summary of Certificate of Deposits Maturities | The following table summarizes the certificate of deposits by maturity at December 31, 2020: Balance Percentage of Total Year (Dollars in thousands) 2021 $ 222,103 85.8 % 2022 19,240 7.4 % 2023 7,485 2.9 % 2024 6,538 2.5 % 2025 3,392 1.3 % Thereafter 101 0.1 % Total certificates of deposit $ 258,859 100.0 % |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Federal Home Loan Banks [Abstract] | |
Federal Home Loan Bank, Advances | Borrowed funds were comprised of the following: As of December 31, 2020 2019 (In thousands) Federal funds purchased $ — $ 201,082 FHLB advances 14,624 18,964 Escrow deposits of borrowers 13,425 15,349 Interest rate swap collateral funds — — Total borrowed funds $ 28,049 $ 235,395 Interest expense on borrowed funds was as follows: For the Year Ended December 31, 2020 2019 2018 (In thousands) Federal funds purchased $ 570 $ 3,976 $ 3,384 Federal Home Loan Bank advances 190 2,406 3,885 Escrow deposits of borrowers 2 4 3 Interest rate swap collateral funds — 66 466 Total interest expense on borrowed funds $ 762 $ 6,452 $ 7,738 A summary of FHLB of Boston advances, by maturities were as follows: As of December 31, 2020 2019 Amount Weighted Average Amount Weighted Average (Dollars in thousands) Within one year $ — — % $ 4,946 1.81 % Over one year to three years 1,412 0.22 % 193 0.17 % Over three years to five years 2,309 1.31 % 1,587 0.35 % Over five years 10,903 1.22 % 12,238 1.39 % Total Federal Home Loan Bank advances $ 14,624 1.14 % $ 18,964 1.40 % |
Earnings Per Share ("EPS") (Tab
Earnings Per Share ("EPS") (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share, Basic and Diluted | For the Year Ended December 31, 2020 (Dollars in thousands, except per share data) Net income applicable to common shares $ 22,738 Average number of common shares outstanding 186,663,593 Less: Average unallocated ESOP shares (14,851,058) Average number of common shares outstanding used to calculate basic earnings per common share 171,812,535 Common stock equivalents — Average number of common shares outstanding used to calculate diluted earnings per common share 171,812,535 Earnings per common share Basic and diluted $ 0.13 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Summary of Company's Tax Provision and Applicable Tax Rates | The following table sets forth information regarding the Company’s tax provision and applicable tax rates for the periods indicated: For the Year Ended December 31, 2020 2019 2018 (Dollars in thousands) Combined federal and state income tax provisions $ 13,163 $ 39,481 $ 34,884 Effective income tax rates 36.7 % 22.6 % 22.1 % The provision for income taxes is comprised of the following components: For the Year Ended December 31, 2020 2019 2018 (In thousands) Current tax expense: Federal $ 23,002 $ 26,365 $ 26,793 State 10,520 11,740 12,969 Total current tax expense 33,522 38,105 39,762 Deferred tax expense (benefit): Federal (13,736) 782 (1,360) State (6,623) 594 (3,518) Total deferred tax (benefit) expense (20,359) 1,376 (4,878) Total income tax expense $ 13,163 $ 39,481 $ 34,884 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the U.S. federal statutory rate to the Company’s effective income tax rate is detailed below: For the Year Ended December 31, 2020 2019 2018 (Dollars in thousands) Income tax expense at statutory rate $ 7,539 21.00 % $ 36,662 21.00 % $ 33,098 21.00 % Increase (decrease) resulting from: State income tax, net of federal tax benefit 43 0.12 % 9,744 5.58 % 7,466 4.74 % Valuation allowance 12,000 33.43 % — — % — — % Amortization of qualified low-income housing investments 4,977 13.86 % 4,782 2.74 % 2,750 1.74 % Tax credits (7,085) (19.73) % (7,570) (4.34) % (3,154) (2.00) % Tax-exempt income (4,091) (11.40) % (3,923) (2.25) % (4,269) (2.71) % Other, net (220) (0.61) % (214) (0.12) % (1,007) (0.64) % Actual income tax expense $ 13,163 36.67 % 39,481 22.61 % 34,884 22.13 % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and deferred tax liabilities are presented below: As of December 31, 2020 2019 (In thousands) Deferred tax assets: Allowance for loan losses $ 34,397 $ 25,641 Leases 24,098 — Charitable contribution limitation carryover 22,942 — Pension and deferred compensation plans — 25,455 Accrued expenses 5,047 5,854 Fixed assets 4,183 3,515 Loan basis difference fair value adjustments 461 1,949 PPP loans fee income 5,969 — Other 967 1,516 Total deferred tax assets before valuation allowance 98,064 63,930 Valuation allowance (12,000) — Total deferred tax assets 86,064 63,930 Deferred tax liabilities: Amortization of intangibles 13,585 13,400 Unrealized gain on available for sale securities 13,005 6,241 Partnerships 1,448 3,967 Cash flow hedges 11,658 6,109 Trading securities 5,110 3,316 Lease obligation 23,048 — Employee benefits 1,613 — Other 3,368 2,690 Total deferred tax liabilities 72,835 35,723 Net deferred income tax assets $ 13,229 $ 28,207 |
Low Income Housing Tax Credit_2
Low Income Housing Tax Credits and Other Tax Credit Investments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments in Affordable Housing Projects [Abstract] | |
Summary of the Company's Investments in Low Income Housing Projects Accounted for Using the Proportional Amortization Method | The following table presents the Company’s investments in LIHTC projects using the proportional amortization method as of the dates indicated: As of December 31, 2020 2019 (In thousands) Investments in qualified affordable housing partnerships, net $ 58,504 $ 37,665 Commitments to fund qualified affordable housing projects included in recorded investment noted above 31,487 18,042 The following table presents additional information related to the Company’s investments in LIHTC projects for the periods indicated: For the Year Ended December 31, 2020 2019 2018 (In thousands) Tax credits and other tax benefits recognized $ 5,033 $ 5,962 $ 2,891 Amortization expense included in income tax expense 4,977 4,782 2,750 |
Minimum Regulatory Capital Re_2
Minimum Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Banking and Thrift, Interest [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The Company’s actual capital amounts and ratios are presented in the following table: Actual For Capital Adequacy To Be Well- Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) As of December 31, 2020 Total regulatory capital (to risk-weighted assets) $ 3,135,445 29.61 % $ 847,069 ≥8 % $ 1,058,836 ≥10 % Common equity Tier 1 capital (to risk-weighted assets) 3,013,079 28.46 476,476 4.5 688,243 6.5 Tier 1 capital (to risk-weighted assets) 3,013,079 28.46 635,302 6 847,069 8 Tier I capital (to average assets) 3,013,079 19.53 617,049 4 771,312 5 As of December 31, 2019 Total regulatory capital (to risk-weighted assets) $ 1,365,391 13.56 % $ 805,394 ≥8 % 1,006,742 ≥10 % Common equity Tier 1 capital (to risk-weighted assets) 1,274,174 12.66 453,034 4.5 654,382 6.5 Tier 1 capital (to risk-weighted assets) 1,274,174 12.66 604,045 6 805,394 8 Tier 1 capital (to average assets) 1,274,174 11.47 444,279 4 555,348 5 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Defined Benefit Plan, Plan with Projected Benefit Obligation in Excess of Plan Assets | The funded status and amounts recognized in the Company’s Consolidated Financial Statements for the Defined Benefit Plan, the DB SERP, the BEP and the ODRCP are set forth in the following table: As of and for the Year Ended December 31, 2020 2019 2018 (In thousands) Change in benefit obligation: Benefit obligation at beginning of the year $ 396,769 $ 302,317 $ 328,409 Service cost 25,970 18,926 23,256 Interest cost 9,657 10,996 11,170 Amendments (133,439) — — Actuarial loss (gain) 78,095 74,828 (46,932) Benefits paid (15,905) (10,298) (13,586) Benefit obligation at end of the year $ 361,147 $ 396,769 $ 302,317 Change in plan assets: Fair value of plan assets at beginning of year $ 378,879 $ 305,154 $ 335,369 Actual return (loss) on plan assets 48,895 60,723 (18,918) Employer contribution 37,773 23,300 2,289 Benefits paid (15,904) (10,298) (13,586) Fair value of plan assets at end of year 449,643 378,879 305,154 Overfunded (underfunded) status $ 88,496 $ (17,890) $ 2,837 Reconciliation of funding status: Past service credit (cost) $ 131,482 $ (25) $ (69) Unrecognized net loss (161,045) (113,022) (82,542) Prepaid benefit cost 118,059 95,157 85,448 Overfunded (underfunded) status $ 88,496 $ (17,890) $ 2,837 Accumulated benefit obligation $ 361,147 $ 290,429 $ 223,865 Amounts recognized in accumulated other comprehensive income (“AOCI”), net of tax: Unrecognized past service credit (cost) $ 94,522 $ (18) $ (50) Unrecognized net loss (115,775) (81,251) (59,339) Net amount $ (21,253) $ (81,269) $ (59,389) Amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit cost over the next fiscal year: Unrecognized past service (credit) cost $ (8,469) $ 18 $ 32 Unrecognized net loss 10,171 6,790 5,207 Net amount $ 1,702 $ 6,808 $ 5,239 |
Defined Benefit Plan, Assumptions | The assumptions used in determining the benefit obligations at December 31, 2020 and 2019 were as follows: DB Plan BEP DB SERP ODRCP As of December 31, As of December 31, As of December 31, As of December 31, 2020 2019 2020 2019 2020 2019 2020 2019 Discount rate 2.26 % 3.16 % 1.77 % 3.15 % 1.63 % 2.72 % 1.81 % 2.86 % Rate of increase in compensation levels 5.25 % 5.25 % 5.25 % 5.25 % — % — % — % 3.00 % Interest rate credit for determining projected cash balance 3.50 % N/A 3.50 % N/A N/A N/A N/A N/A |
Reconciliation of Interest in SBERA Common Collective | The table below presents a reconciliation of the Company’s interest in the SBERA common collective trust during the years indicated: For the Year Ended December 31, 2020 2019 (In Thousands) Balance at beginning of year $ 378,879 $ 305,154 Net realized and unrealized gains and (losses) 48,895 60,723 Contributions 32,515 20,000 Benefits paid (10,646) (6,998) Balance at end of year $ 449,643 $ 378,879 |
Schedule of Net Benefit Costs | The assumptions used in determining the net periodic benefit cost for the years ended December 31, 2020, 2019, and 2018 were as follows: DB Plan For the Year Ended December 31, 2020 2019 2018 Discount rate - benefit cost 3.16 % 4.25 % 3.50 % Rate of compensation increase 5.25 % 5.25 % 5.25 % Expected rate of return on plan assets 7.50 % 7.50 % 7.75 % BEP For the Year Ended December 31, 2020 2019 2018 Discount rate - benefit cost 3.15 % 4.25 % 3.50 % Rate of compensation increase 5.25 % 5.25 % 5.25 % Expected rate of return on plan assets — % — % — % DB SERP For the Year Ended December 31, 2020 2019 2018 Discount rate - benefit cost 2.72 % 4.25 % 3.50 % Rate of compensation increase — % — % — % Expected rate of return on plan assets — % — % — % ODRCP For the Year Ended December 31, 2020 2019 2018 Discount rate - benefit cost 2.86 % 4.25 % 3.50 % Rate of compensation increase 3.00 % 3.00 % 3.00 % Expected rate of return on plan assets — % — % — % |
Summary of Components of Net Pension Expense | The components of net pension expense for the plans for the periods indicated are as follows: For the Year Ended December 31, 2020 2019 2018 (In Thousands) Components of net periodic benefit cost: Service cost $ 25,970 $ 18,926 $ 23,258 Interest cost 9,657 10,996 11,170 Expected return on plan assets (29,610) (23,617) (25,335) Past service (credit) cost (1,931) 44 44 Recognized net actuarial loss 10,787 7,242 7,621 Net periodic benefit cost $ 14,873 $ 13,591 $ 16,758 |
Schedule of Expected Benefit Payments | The following table summarizes estimated benefits to be paid from the Defined Benefit Plan and BEP for the plan years beginning on November 1, and the DB SERP and ODRCP for the plan years beginning January 1: Year (In thousands) 2021 $ 36,510 2022 29,553 2023 32,753 2024 31,131 2025 34,029 In aggregate for 2026-2030 176,164 |
Employee Stock Ownership Plan (ESOP) Disclosures | The following table presents share information held by the ESOP: As of December 31, 2020 (Dollars in thousands) Allocated shares 63,690 Shares committed to be allocated 104,464 Unallocated shares 14,772,498 Total shares 14,940,652 Fair value of unallocated shares $ 240,939 |
Schedule of Assets Held in Rabbi Trust | Assets held in rabbi trust accounts by plan type, at fair value, were as follows: As of December 31, 2020 2019 (In thousands) DB SERP $ 22,616 $ 20,003 BEP 7,198 5,934 ODRCP 4,251 3,575 DC SERP 28,134 24,564 Deferred compensation plans 29,484 23,936 Total rabbi trust assets $ 91,683 $ 78,012 DB SERP As of December 31, 2020 As of December 31, 2019 Book Value Unrealized Fair Value Book Value Unrealized Fair Value Asset Type (In thousands) Cash and cash equivalents $ 1,208 $ — $ 1,208 $ 821 $ — $ 821 Equities 10,822 5,508 16,330 10,711 3,909 14,620 Fixed income 4,854 224 5,078 4,450 112 4,562 Total assets $ 16,884 $ 5,732 $ 22,616 $ 15,982 $0 $ 4,021 $0 $ 20,003 BEP As of December 31, 2020 As of December 31, 2019 Book Value Unrealized Fair Value Book Value Unrealized Fair Value Asset Type (In thousands) Cash and cash equivalents $ 320 $ — $ 320 $ 158 $ — $ 158 Equities 3,504 1,730 5,234 3,276 1,224 4,500 Fixed income 1,565 79 1,644 1,244 32 1,276 Total assets $ 5,389 $ 1,809 $ 7,198 $ 4,678 $ 1,256 $0 $ 5,934 ODRCP As of December 31, 2020 As of December 31, 2019 Book Value Unrealized Fair Value Book Value Unrealized Fair Value Asset Type (In thousands) Cash and cash equivalents $ 230 $ — $ 230 $ 171 $ — $ 171 Equities 1,985 959 2,944 1,841 665 2,506 Fixed income 1,022 55 1,077 877 21 898 Total assets $ 3,237 $ 1,014 $ 4,251 $ 2,889 $0 $ 686 $0 $ 3,575 DC SERP As of December 31, 2020 As of December 31, 2019 Book Value Unrealized Fair Value Book Value Unrealized Fair Value Asset Type (In thousands) Cash and cash equivalents $ 240 $ — $ 240 $ 1,540 $ — $ 1,540 Equities 20,966 6,928 27,894 15,691 4,676 20,367 Fixed income — — — 2,619 38 2,657 Total assets $ 21,206 $ 6,928 $ 28,134 $ 19,850 $ 4,714 $ 24,564 Deferred Compensation Plans As of December 31, 2020 As of December 31, 2019 Book Value Unrealized Fair Value Book Value Unrealized Fair Value Asset Type (In thousands) Cash and cash equivalents $ 3,159 $ — $ 3,159 $ 2,738 $ — $ 2,738 Equities 21,958 4,367 26,325 14,135 2,385 16,520 Fixed income — — — 4,580 98 4,678 Total assets $ 25,117 $ 4,367 $ 29,484 $ 21,453 $ 2,483 $ 23,936 |
Schedule of Gain Related to Equity Securities Held in Rabbi Trust | The following table presents a summary of the gains and losses related to equity securities for the periods indicated: For the Year Ended December 31, 2020 2019 (In thousands) Net gains recognized on equity securities $ 11,756 $ 11,283 Less: net gains realized on sale of equity securities (5,122) (1,774) Unrealized gains on equity securities held at end of period $ 6,634 $ 9,509 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Financial Instruments as of the Dates Indicated | The following table summarizes the above financial instruments as of the dates indicated: As of December 31, 2020 2019 (In Thousands) Commitments to extend credit $ 3,818,952 $ 3,606,182 Standby letters of credit 60,221 60,124 Forward commitments to sell loans 41,160 21,357 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Schedule of Interest Rate Derivatives | As of December 31, 2019 Weighted Average Rate Notional Weighted Average Current Receive Fixed Fair Value (1) (In Thousands) (In Years) (In Thousands) Interest rate swaps on loans $ 2,120,000 2.16 1.74 % 2.11 % $ (321) Total $ 2,120,000 $ (321) (1) Fair value included net accrued interest receivable of $0.4 million at December 31, 2019. |
Summary of Pre-tax Impact of Terminated Cash Flow Hedged on AOCI | The following table presents the pre-tax impact of terminated cash flow hedges on AOCI. The balance of terminated cash flow hedges in AOCI will be amortized into earnings through January 2023. Year Ended December 31, 2020 2019 (Dollars in Thousands) Unrealized gains on terminated hedges included in AOCI — January 1 $ — $ — Unrealized gains on terminated hedges arising during the period 57,362 — Reclassification adjustments for amortization of unrealized (gains) into net interest income (15,889) — Unrealized gains on terminated hedges included in AOCI — December 31 $ 41,473 $ — |
Derivatives Not Designated as Hedging Instruments | The following tables present the Company’s customer-related derivative positions as of the dates indicated below for those derivatives not designated as hedging: As of December 31, 2020 Number of Positions Total Notional (Dollars in thousands) Interest rate swaps 576 $ 3,652,385 Risk participation agreements 70 287,732 Foreign exchange contracts: Matched commercial customer book 40 4,242 Foreign currency loan 3 10,798 As of December 31, 2019 Number of Positions Total Notional (Dollars in thousands) Interest rate swaps 603 $ 3,749,474 Risk participation agreements 67 299,576 Foreign exchange contracts: Matched commercial customer book 62 29,990 Foreign currency loan 23 7,310 |
Schedule of Derivative Financial Instruments | The table below presents the fair value of the Company’s derivative financial instruments, as well as their classification on the balance sheet for the periods indicated: Asset Derivatives Liability Derivatives Balance Sheet Fair Value at December 31, Fair Value at December 31, Balance Sheet Fair Value at December 31, Fair Value at December 31, (In thousands) Derivatives designated as hedging instruments Interest rate swaps Other assets $ — $ — Other liabilities $ — $ 321 Derivatives not designated as hedging instruments Customer-related positions: Interest rate swaps Other assets $ 141,822 $ 64,463 Other liabilities $ 42,600 $ 18,057 Risk participation agreements Other assets 722 482 Other liabilities 1,230 606 Foreign currency exchange contracts — matched customer book Other assets 90 469 Other liabilities 77 428 Foreign currency exchange contracts — foreign currency loan Other assets 9 — Other liabilities 69 203 $ 142,643 $ 65,414 $ 43,976 $ 19,294 Total $ 142,643 $ 65,414 $ 43,976 $ 19,615 |
Schedule of Derivative Financial Instruments On The Consolidated Income Statements | The table below presents the net effect of the Company’s derivative financial instruments on the consolidated income statements as well as the effect of the Company’s derivative financial instruments included in other comprehensive income (“OCI”) as follows: For the Year Ended December 31, 2020 2019 2018 (In thousands) Derivatives designated as hedges: Gain in OCI on derivatives $ 46,871 $ 20,275 $ 5,354 Gain reclassified from OCI into interest income (effective portion) $ 27,131 $ 2,698 $ 1,198 Gain recognized in income on derivatives (ineffective portion and amount excluded from effectiveness test) Interest income $ — $ — $ — Other income — — — Total $ — $ — $ — Derivatives not designated as hedges: Customer-related positions: Gain (loss) recognized in interest rate swap income $ (3,812) $ (2,833) $ (550) Gain (loss) recognized in interest rate swap income for risk participation agreements (384) (83) (35) Gain (loss) recognized in other income for foreign currency exchange contracts: Matched commercial customer book (28) (47) 36 Foreign currency loan 143 (203) — Total (loss) for derivatives not designated as hedges $ (4,081) $ (3,166) $ (549) |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Offsetting [Abstract] | |
Disclosure Detail Of Balance Sheet Offsetting Of Financial Assets And Liabilities | The following tables present the Company’s asset and liability positions that were eligible for offset and the potential effect of netting arrangements on its financial position, as of the dates indicated: Gross Gross Net Gross Amounts Not Offset Net Financial Collateral (In Thousands) As of December 31, 2020 Derivative Assets Interest rate swaps $ — $ — $ — $ — $ — $ — Customer-related positions: Interest rate swaps 141,822 — 141,822 48 — 141,774 Risk participation agreements 722 — 722 — — 722 Foreign currency exchange contracts – matched customer book 90 — 90 — (1) 89 Foreign currency exchange contracts – foreign currency loan 9 — 9 — — 9 $ 142,643 $ — $ 142,643 $ 48 $ (1) $ 142,594 Derivative Liabilities Interest rate swaps $ — $ — $ — $ — $ — $ — Customer-related positions: Interest rate swaps 42,600 — 42,600 48 42,552 — Risk participation agreements 1,230 — 1,230 — — 1,230 Foreign currency exchange contracts – matched customer book 77 — 77 — — 77 Foreign currency exchange contracts – foreign currency loan 69 — 69 — — 69 $ 43,976 $ — $ 43,976 $ 48 $ 42,552 $ 1,376 Gross Gross Net Gross Amounts Not Offset Net Financial Collateral (In Thousands) As of December 31, 2019 Derivative Assets Interest rate swaps $ — $ — $ — $ — $ — $ — Customer-related positions: Interest rate swaps 64,463 — 64,463 1,434 — 63,029 Risk participation agreements 482 — 482 — — 482 Foreign currency exchange contracts – matched customer book 469 — 469 7 (462) — $ 65,414 $ — $ 65,414 $ 1,441 $ (462) $ 63,511 Derivative Liabilities Interest rate swaps $ 321 $ — $ 321 $ 321 $ — $ — Customer-related positions: Interest rate swaps 18,057 — 18,057 1,434 16,623 — Risk participation agreements 606 — 606 — — 606 Foreign currency exchange contracts – matched customer book 428 — 428 7 — 421 Foreign currency exchange contracts – foreign currency loan 203 — 203 — — 203 $ 19,615 $ — $ 19,615 $ 1,762 $ 16,623 $ 1,230 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary Of The Balances Of Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following tables present the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2020 and 2019: Fair Value Measurements at Reporting Date Using Balance as of December 31, 2020 Quoted Prices in Significant Significant Description (Dollars in thousands) Assets Securities available for sale Government-sponsored residential mortgage-backed securities $ 2,148,800 $ — $ 2,148,800 $ — Government-sponsored commercial mortgage-backed securities 17,081 — 17,081 — U.S. Agency bonds 666,709 — 666,709 — U.S. Treasury securities 70,369 70,369 — — State and municipal bonds and obligations 280,902 — 280,902 — Rabbi trust investments 91,683 83,884 7,799 — Loans held for sale 1,140 — 1,140 — Interest rate swap contracts Customer-related positions 141,822 — 141,822 — Risk participation agreements 722 — 722 — Foreign currency forward contracts Matched customer book 90 — 90 — Foreign currency loan 9 — 9 — Total $ 3,419,327 $ 154,253 $ 3,265,074 $ — Liabilities Interest rate swap contracts Customer-related positions $ 42,600 $ — $ 42,600 $ — Risk participation agreements 1,230 — 1,230 — Foreign currency forward contracts Matched customer book 77 — 77 — Foreign currency loan 69 — 69 — Total $ 43,976 $ — $ 43,976 $ — Fair Value Measurements at Reporting Date Using Description Balance as of December 31, 2019 Quoted Prices in Significant Significant (In thousands) Assets Trading securities Municipal bonds $ 961 $ — $ 961 $ — Securities available for sale Government-sponsored residential mortgage-backed securities 1,167,968 — 1,167,968 — U.S. Treasury securities 50,420 50,420 — State and municipal bonds and obligations 283,538 — 283,538 — Qualified zone academy bond 6,310 — — 6,310 Rabbi trust investments 78,012 63,945 14,067 — Loans held for sale 26 — 26 — Interest rate swap contracts Customer-related positions 64,463 — 64,463 — Risk participation agreements 482 — 482 — Foreign currency forward contracts Matched customer book 469 — 469 — Total $ 1,652,649 $ 114,365 $ 1,531,974 $ 6,310 Liabilities Interest rate swap contracts Cash flow hedges – interest rate positions $ 321 $ — $ 321 $ — Customer-related positions 18,057 — 18,057 — Risk participation agreements 606 — 606 — Foreign currency forward contracts Matched customer book 428 — 428 — Foreign currency loan 203 — 203 — Total $ 19,615 $ — $ 19,615 $ — |
Summary Of The Reconciliation For All Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Significant Unobservable Inputs Level (3) | The table below presents a reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended December 31, 2020, 2019 and 2018: Securities (In thousands) Balance at January 1, 2018 $ 5,936 Gains and losses (realized/unrealized): Included in net income 109 Balance at December 31, 2018 $ 6,045 Gains and losses (realized/unrealized): Included in net income 109 Included in other comprehensive income 156 Balance at December 31, 2019 $ 6,310 Gains and losses (realized/unrealized): Included in net income 106 Included in other comprehensive income (156) Settlement (6,260) Balance at December 31, 2020 $ — |
Summary Of The Fair Value Of Assets And Liabilities Measured At Fair Value On A Nonrecurring Basis | The following tables summarize the fair value of assets and liabilities measured at fair value on a nonrecurring basis, as of December 31, 2020 and 2019. Fair Value Measurements at Reporting Date Using Description Balance as of December 31, 2020 Quoted Prices Significant Significant (Dollars in thousands) Assets Collateral-dependent impaired loans whose fair value is based upon appraisals $ 11,036 $ — $ — $ 11,036 Fair Value Measurements at Reporting Date Using Description Balance as of December 31, 2019 Quoted Prices Significant Significant (Dollars in thousands) Assets Collateral-dependent impaired loans whose fair value is based upon appraisals $ 4,261 $ — $ — $ 4,261 |
Schedule of Fair Value of Financial Instruments | The estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below as of the dates indicated: Fair Value Measurements at Reporting Date Using Carrying Value as of December 31, 2020 Fair Value as of December 31, 2020 Quoted Prices Significant Significant (Dollars in thousands) Assets Loans, net of allowance for credit losses $ 9,593,958 $ 9,779,195 $ — $ — $ 9,779,195 FHLB stock 8,805 8,805 — 8,805 — Bank-owned life insurance 78,561 78,561 — 78,561 — Liabilities Deposits $ 12,155,784 $ 12,155,843 $ — $ 12,155,843 $ — FHLB advances 14,624 14,434 — 14,434 — Escrow deposits from borrowers 13,425 13,425 — 13,425 — Fair Value Measurements at Reporting Date Using Carrying Value as of December 31, 2019 Fair Value as of December 31, 2019 Quoted Prices Significant Significant (Dollars in thousands) Assets Loans, net of allowance for credit losses $ 8,889,184 $ 9,116,018 $ — $ — $ 9,116,018 FHLB stock 9,027 9,027 — 9,027 — Bank-owned life insurance 77,546 77,546 — 77,546 — Liabilities Deposits $ 9,551,392 $ 9,548,889 $ — $ 9,548,889 $ — FHLB advances 18,964 18,188 — 18,188 — Escrow deposits from borrowers 15,349 15,349 — 15,349 — |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from External Customers by Products and Services | The Company has disaggregated its revenue within the scope of ASC 606 by type of service, as presented in the table below. These categories reflect how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. For the Year Ended December 31, 2020 2019 2018 (In thousands) Insurance commissions $ 94,495 $ 90,587 $ 91,885 Service charges on deposit accounts 21,560 27,043 26,897 Trust and investment advisory fees 21,102 19,653 19,128 Debit card processing fees 10,277 10,452 16,162 Other non-interest income 7,311 8,483 9,981 Total noninterest income in-scope of ASC 606 154,745 156,218 164,053 Total noninterest income out-of-scope of ASC 606 23,628 26,081 16,542 Total noninterest income $ 178,373 $ 182,299 $ 180,595 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement of Other Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) | The following tables present a reconciliation of the changes in the components of other comprehensive income (loss) for the dates indicated including the amount of income tax (expense) benefit allocated to each component of other comprehensive income (loss): For the Year Ended December 31, 2020 Pre Tax Tax (Expense) After Tax (Dollars in thousands) Unrealized gains (losses) on securities available for sale: Change in fair value of securities available for sale $ 30,926 $ (6,828) $ 24,098 Less: reclassification adjustment for gains included in net income 288 (64) 224 Net change in fair value of securities available for sale 30,638 (6,764) 23,874 Unrealized gains (losses) on cash flow hedges: Change in fair value of cash flow hedges (1) 46,871 (13,175) 33,696 Less: net cash flow hedge gains reclassified into interest income 27,131 (7,626) 19,505 Net change in fair value of cash flow hedges 19,740 (5,549) 14,191 Defined benefit pension plans: Change in actuarial net loss (58,811) 16,532 (42,279) Less: amortization of actuarial net loss (10,787) 3,033 (7,754) Plan amendment – prior service credit 133,439 (37,510) 95,929 Less: net accretion of prior service credit 1,931 (543) 1,388 Net change in other comprehensive income for defined benefit postretirement plans 83,484 (23,468) 60,016 Total other comprehensive income $ 133,862 $ (35,781) $ 98,081 For the Year Ended December 31, 2019 Pre Tax Tax (Expense) After Tax (Dollars in thousands) Unrealized gains (losses) on securities available for sale: Change in fair value of securities available for sale $ 54,881 $ (12,166) $ 42,715 Less: reclassification adjustment for gains included in net income 2,016 (459) 1,557 Net change in fair value of securities available for sale 52,865 (11,707) 41,158 Unrealized gains (losses) on cash flow hedges: Change in fair value of cash flow hedges 20,275 (5,699) 14,576 Less: net cash flow hedge gains reclassified into interest income 2,698 (758) 1,940 Net change in fair value of cash flow hedges 17,577 (4,941) 12,636 Defined benefit pension plans: Change in actuarial net loss (37,722) 10,603 (27,119) Less: amortization of actuarial net loss (7,242) 2,036 (5,206) Less: amortization of prior service cost (44) 11 (33) Net change in other comprehensive income for defined benefit postretirement plans (30,436) 8,556 (21,880) Total other comprehensive income $ 40,006 $ (8,092) $ 31,914 For the Year Ended December 31, 2018 Pre Tax Tax (Expense) After Tax (Dollars in thousands) Unrealized gains (losses) on securities available for sale: Change in fair value of securities available for sale $ (39,144) $ 8,659 $ (30,485) Less: reclassification adjustment for gains included in net income 50 (10) 40 Net change in fair value of securities available for sale (39,194) 8,669 (30,525) Unrealized gains (losses) on cash flow hedges: Change in fair value of cash flow hedges 5,354 (1,505) 3,849 Less: net cash flow hedge gains reclassified into interest income 1,198 (337) 861 Net change in fair value of cash flow hedges 4,156 (1,168) 2,988 Defined benefit pension plans: Change in actuarial net loss 2,680 (754) 1,926 Less: amortization of actuarial net loss (7,621) 2,142 (5,479) Less: amortization of prior service cost (44) 12 (32) Net change in other comprehensive income for defined benefit postretirement plans 10,345 (2,908) 7,437 Total other comprehensive income $ (24,693) $ 4,593 $ (20,100) (1) Includes amortization of $11.4 million of the remaining balance of realized but unrecognized gains, net of tax, from the termination of interest rate swaps. The total realized gain of $41.2 million, net of tax, will be recognized in earnings through January 2023. The balance of this gain had amortized to $29.8 million, net of tax, at December 31, 2020. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table illustrates the changes in the balances of each component of accumulated other comprehensive income (loss), net of tax: Unrealized Unrealized Defined Benefit Total (In thousands) Beginning balance: January 1, 2018 $ 11,165 $ — $ (66,826) $ (55,661) Other comprehensive income (loss) before reclassifications (30,485) 3,849 — (26,636) Less: Amounts reclassified from accumulated other comprehensive income 40 861 (7,437) (6,536) Net current-period other comprehensive income (30,525) 2,988 7,437 (20,100) Ending balance: December 31, 2018 $ (19,360) $ 2,988 $ (59,389) $ (75,761) Other comprehensive income (loss) before reclassifications 42,715 14,576 (27,119) 30,172 Less: Amounts reclassified from accumulated other comprehensive income 1,557 1,940 (5,239) (1,742) Net current-period other comprehensive income 41,158 12,636 (21,880) 31,914 Ending balance: December 31, 2019 $ 21,798 $ 15,624 $ (81,269) $ (43,847) Other comprehensive income (loss) before reclassifications 24,098 33,696 53,650 111,444 Less: Amounts reclassified from accumulated other comprehensive income 224 19,505 (6,366) 13,363 Net current-period other comprehensive income 23,874 14,191 60,016 98,081 Ending balance: December 31, 2020 $ 45,672 $ 29,815 $ (21,253) $ 54,234 The following table illustrates the significant amounts reclassified out of each component of accumulated other comprehensive income, net of tax: Year Ended December 31, Details about Accumulated Other Comprehensive Income Components 2020 2019 2018 Affected Line Item in the Statement Where Net Income is Presented (In Thousands) Unrealized gains and losses on available-for-sale securities $ 288 $ 2,016 $ 50 Gain/(loss) on sale of securities 288 288 2,016 50 Total before tax (64) (459) (10) Tax (expense) or benefit $ 224 $ 1,557 $ 40 Net of tax Unrealized gains and losses on cash flow hedges $ 27,131 $ 2,698 $ 1,198 Interest income 27,131 27,131 2,698 1,198 Total before tax (7,626) (758) (337) Tax (expense) or benefit $ 19,505 $ 1,940 $ 861 Net of tax Amortization of defined benefit pension items $ (10,787) $ (7,242) $ (7,621) Net periodic pension cost Accretion (amortization) of prior service credit (cost) 1,931 (44) (44) Employee Benefits footnote (8,856) (7,286) (7,665) Total before tax 2,490 2,047 2,154 Tax (expense) or benefit $ (6,366) $ (5,239) $ (5,511) Net of tax Total reclassifications for the period $ 13,363 $ (1,742) $ (4,610) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information, By Segment | Results of operations and selected financial information by segment and reconciliation to the Consolidated Financial Statements as of and for the years ended December 31, 2020, 2019, and 2018 were as follows: As of and for the year ended December 31, 2020 Banking Insurance Other / Total (In thousands) Net interest income $ 401,251 $ — $ — $ 401,251 Provision for loan losses 38,800 — — 38,800 Net interest income after provision for loan losses 362,451 — — 362,451 Noninterest income 82,334 96,739 (700) 178,373 Noninterest expense 431,705 77,806 (4,588) 504,923 Income before provision for income taxes 13,080 18,933 3,888 35,901 Income tax provision 7,870 5,293 — 13,163 Net income $ 5,210 $ 13,640 $ 3,888 $ 22,738 Total assets $ 15,831,175 $ 200,216 $ (67,201) $ 15,964,190 Total liabilities $ 12,547,838 $ 55,501 $ (67,201) $ 12,536,138 As of and for the year ended December 31, 2019 Banking Insurance Other / Total (In thousands) Net interest income $ 411,264 $ — $ — $ 411,264 Provision for loan losses 6,300 — — 6,300 Net interest income after provision for loan losses 404,964 — — 404,964 Noninterest income 89,840 92,705 (246) 182,299 Noninterest expense 337,323 79,043 (3,682) 412,684 Income before provision for income taxes 157,481 13,662 3,436 174,579 Income tax provision 35,542 3,939 — 39,481 Net income $ 121,939 $ 9,723 $ 3,436 $ 135,098 Total assets $ 11,515,117 $ 165,965 $ (52,307) $ 11,628,775 Total liabilities $ 10,046,189 $ 34,740 $ (52,307) $ 10,028,622 As of and for the year ended December 31, 2018 Banking Insurance Other / Total (In thousands) Net interest income $ 390,044 $ — $ — $ 390,044 Provision for loan losses 15,100 — — 15,100 Net interest income after provision for loan losses 374,944 — — 374,944 Noninterest income 86,596 94,233 (234) 180,595 Noninterest expense 326,956 73,852 (2,880) 397,928 Income before provision for income taxes 134,584 20,381 2,646 157,611 Income tax provision 29,313 5,571 — 34,884 Net income $ 105,271 $ 14,810 $ 2,646 $ 122,727 Total assets $ 11,265,752 $ 152,832 $ (40,297) $ 11,378,287 Total liabilities $ 9,954,112 $ 31,331 $ (40,297) $ 9,945,146 |
Parents Company Financial Sta_2
Parents Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet | BALANCE SHEETS As of December 31, 2020 2019 (Dollars in thousands) Assets Cash and cash equivalents (1) $ 741,034 $ 4,730 Goodwill and other intangibles, net 744 744 Deferred income taxes, net 10,817 — Investment in subsidiaries 2,674,133 1,594,024 Other assets 1,324 771 Total assets $ 3,428,052 $ 1,600,269 Liabilities and shareholders’ equity Other liabilities $ — $ 116 Total liabilities — 116 Shareholders’ equity 3,428,052 1,600,153 Total liabilities and shareholders’ equity $ 3,428,052 $ 1,600,269 (1) Entire balance eliminates in consolidation. |
Condensed Income Statement | STATEMENTS OF INCOME For the Year Ended December 31, 2020 2019 2018 (In thousands) Expenses Professional services $ 1,485 $ 360 $ 255 Charitable contributions 91,287 — — Other 151 105 129 Total expenses 92,923 465 384 Loss before income taxes and equity in undistributed income of subsidiaries (92,923) (465) (384) Income tax benefit (13,933) (131) (108) Loss before equity in undistributed income of subsidiaries (78,990) (334) (276) Equity in undistributed income of subsidiaries 101,728 135,432 123,003 Net income $ 22,738 $ 135,098 $ 122,727 |
Condensed Cash Flow Statement | STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2020 2019 2018 (In thousands) Cash flows provided by (used in) operating activities Net income $ 22,738 $ 135,098 $ 122,727 Adjustments to reconcile net income to cash provided by operating activities Equity in undistributed income of subsidiaries (101,728) (135,432) (123,003) Issuance of common shares donated to the Eastern Bank Charitable Foundation 91,287 — — ESOP expense 2,351 — — Change in: Deferred income taxes, net (10,817) — — Other, net (350) 25 (9) Net cash provided by operating activities 3,481 (309) (285) Cash flows used in investing activities Investment in Eastern Bank (882,096) — — Net cash used in investing activities (882,096) — — Cash flows provided by (used in) financing activities Proceeds from issuance of common shares 1,792,878 — — Purchase of shares by ESOP (149,407) — — Payments for deferred offering costs (28,552) (346) — Net cash provided by financing activities 1,614,919 (346) — Net increase in cash and cash equivalents 736,304 (655) (285) Cash and cash equivalents at beginning of year 4,730 5,385 5,670 Cash and cash equivalents at end of year $ 741,034 $ 4,730 $ 5,385 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Results of Operations | First Quarter Second Quarter Third Quarter Fourth Quarter 2020 2019 2020 2019 2020 2019 2020 2019 (Dollars in thousands, except per share data) Interest and dividend income $ 106,159 $ 111,483 $ 101,933 $ 112,838 $ 100,513 $ 112,723 $ 104,723 $ 107,973 Interest expense 6,013 8,811 3,178 9,315 1,771 8,575 1,115 7,052 Net interest income 100,146 102,672 98,755 103,523 98,742 104,148 103,608 100,921 Provision for loan losses 28,600 3,000 8,600 1,500 700 — 900 1,800 Net interest income after provision for loan losses 71,546 99,672 90,155 102,023 98,042 104,148 102,708 99,121 Noninterest income 33,369 47,800 47,657 45,632 47,709 41,590 49,638 47,277 Noninterest expense 95,172 104,829 100,765 101,570 109,817 100,666 199,169 105,619 Income before provision for income taxes 9,743 42,643 37,047 46,085 35,934 45,072 (46,823) 40,779 Income tax provision (benefit) 1,298 9,678 7,197 11,032 7,429 9,230 (2,761) 9,541 Net income (loss) $ 8,445 $ 32,965 $ 29,850 $ 35,053 $ 28,505 $ 35,842 $ (44,062) $ 31,238 Earnings (loss) per share: Basic $ — $ — $ — $ — $ — $ — $ (0.26) $ — Diluted — — — — — — (0.26) — Average common shares outstanding: Basic — — — — — — 171,812,535 — Diluted — — — — — — 171,812,535 — |
Corporate Structure and Natur_2
Corporate Structure and Nature of Operations; Plan of Reorganization and Conversion; Basis of Presentation (Details) - USD ($) | Oct. 15, 2020 | Oct. 14, 2020 | Dec. 31, 2020 | Oct. 16, 2020 |
Subsequent Event [Line Items] | ||||
Ownership percentage | 100.00% | |||
Common stock issued (in shares) | 186,758,154 | 186,758,154 | ||
Common stock outstanding (in shares) | 186,758,154 | 186,758,154 | ||
Public Offering | ||||
Subsequent Event [Line Items] | ||||
Shares sold (in shares) | 179,287,828 | |||
Stock price (in dollars per share) | $ 10 | |||
Proceeds from gross offering | $ 1,792,878,000 | |||
Employee Stock | ||||
Subsequent Event [Line Items] | ||||
Shares sold (in shares) | 14,940,652 | |||
Charitable Contribution | ||||
Subsequent Event [Line Items] | ||||
Shares sold (in shares) | 7,470,326 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Detail) - USD ($) $ in Thousands | Jan. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Restricted cash pledged as collateral | $ 49,200 | $ 22,200 | |
Right-of-use assets | $ 92,900 | 81,596 | |
Lease liabilities | $ 96,400 | $ 85,330 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities | |
Rent expense under operating leases | $ 3,500 | ||
Retained earnings | $ 1,665,607 | $ 1,644,000 | |
Cumulative effect accounting adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Retained earnings | $ 1,100 |
Mergers and Acquisitions - Narr
Mergers and Acquisitions - Narrative (Details) - Insurance Agency Acquisition $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Business Acquisition [Line Items] | |
Total cash paid | $ 1,363 |
Contingent consideration | 293 |
Acquisition-related and professional fee costs | 100 |
Minimum | |
Business Acquisition [Line Items] | |
Contingent consideration | 0 |
Maximum | |
Business Acquisition [Line Items] | |
Contingent consideration | $ 300 |
Mergers and Acquisitions - Summ
Mergers and Acquisitions - Summary of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $ 369,477 | $ 369,031 | $ 369,031 |
Insurance Agency Acquisition | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Total assets acquired | 1,210 | ||
Total cash paid | (1,363) | ||
Contingent consideration | (293) | ||
Total fair value of consideration | (1,656) | ||
Goodwill | 446 | ||
Customer list intangible | Insurance Agency Acquisition | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Total assets acquired | 1,130 | ||
Non-compete intangible | Insurance Agency Acquisition | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Total assets acquired | $ 80 |
Securities - Summary Of Debt Se
Securities - Summary Of Debt Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 3,125,184 | $ 1,480,197 |
Unrealized Gains | 62,549 | 28,587 |
Unrealized Losses | (3,872) | (548) |
Fair Value | 3,183,861 | 1,508,236 |
Government-sponsored residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,106,658 | 1,151,305 |
Unrealized Gains | 42,142 | 17,208 |
Unrealized Losses | 0 | (545) |
Fair Value | 2,148,800 | 1,167,968 |
Government-sponsored commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 17,054 | |
Unrealized Gains | 27 | |
Unrealized Losses | 0 | |
Fair Value | 17,081 | |
U.S. Agency bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 670,468 | |
Unrealized Gains | 113 | |
Unrealized Losses | (3,872) | |
Fair Value | 666,709 | |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 70,106 | 50,155 |
Unrealized Gains | 263 | 265 |
Unrealized Losses | 0 | 0 |
Fair Value | 70,369 | 50,420 |
State and municipal bonds and obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 260,898 | 272,582 |
Unrealized Gains | 20,004 | 10,959 |
Unrealized Losses | 0 | (3) |
Fair Value | $ 280,902 | 283,538 |
Qualified zone academy bond | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 6,155 | |
Unrealized Gains | 155 | |
Unrealized Losses | 0 | |
Fair Value | $ 6,310 |
Securities - Summary Of Fair Va
Securities - Summary Of Fair Value Of Available For Sale Securities By Contractual Maturities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Due in one year or less, Amortized Cost | $ 50,429 | $ 6,576 |
Due in one year or less, Fair value | 50,659 | 6,731 |
Due after one year to five years, Amortized Cost | 186,659 | 67,143 |
Due after one year to five years, Fair value | 190,308 | 67,953 |
Due after five to ten years, Amortized Cost | 759,068 | 276,655 |
Due after five to ten years, Fair value | 763,869 | 283,210 |
Due after ten years, Amortized Cost | 2,129,028 | 1,129,823 |
Due after ten years, Fair value | 2,179,025 | 1,150,342 |
Total Amortized Cost | 3,125,184 | 1,480,197 |
Available for sale | 3,183,861 | 1,508,236 |
Government-sponsored residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Due in one year or less, Amortized Cost | 0 | 0 |
Due in one year or less, Fair value | 0 | 0 |
Due after one year to five years, Amortized Cost | 46,293 | 8,139 |
Due after one year to five years, Fair value | 48,925 | 8,464 |
Due after five to ten years, Amortized Cost | 96,338 | 199,428 |
Due after five to ten years, Fair value | 100,278 | 203,706 |
Due after ten years, Amortized Cost | 1,964,027 | 943,738 |
Due after ten years, Fair value | 1,999,597 | 955,798 |
Total Amortized Cost | 2,106,658 | 1,151,305 |
Available for sale | 2,148,800 | 1,167,968 |
Government-sponsored commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Due in one year or less, Amortized Cost | 0 | |
Due in one year or less, Fair value | 0 | |
Due after one year to five years, Amortized Cost | 0 | |
Due after one year to five years, Fair value | 0 | |
Due after five to ten years, Amortized Cost | 17,054 | |
Due after five to ten years, Fair value | 17,081 | |
Due after ten years, Amortized Cost | 0 | |
Due after ten years, Fair value | 0 | |
Total Amortized Cost | 17,054 | |
Available for sale | 17,081 | |
U.S. Agency bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Due in one year or less, Amortized Cost | 0 | |
Due in one year or less, Fair value | 0 | |
Due after one year to five years, Amortized Cost | 99,772 | |
Due after one year to five years, Fair value | 99,834 | |
Due after five to ten years, Amortized Cost | 570,696 | |
Due after five to ten years, Fair value | 566,875 | |
Due after ten years, Amortized Cost | 0 | |
Due after ten years, Fair value | 0 | |
Total Amortized Cost | 670,468 | |
Available for sale | 666,709 | |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Due in one year or less, Amortized Cost | 50,023 | 40 |
Due in one year or less, Fair value | 50,251 | 40 |
Due after one year to five years, Amortized Cost | 20,083 | 50,115 |
Due after one year to five years, Fair value | 20,118 | 50,380 |
Due after five to ten years, Amortized Cost | 0 | 0 |
Due after five to ten years, Fair value | 0 | 0 |
Due after ten years, Amortized Cost | 0 | 0 |
Due after ten years, Fair value | 0 | 0 |
Total Amortized Cost | 70,106 | 50,155 |
Available for sale | 70,369 | 50,420 |
State and municipal bonds and obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Due in one year or less, Amortized Cost | 406 | 381 |
Due in one year or less, Fair value | 408 | 381 |
Due after one year to five years, Amortized Cost | 20,511 | 8,889 |
Due after one year to five years, Fair value | 21,431 | 9,109 |
Due after five to ten years, Amortized Cost | 74,980 | 77,227 |
Due after five to ten years, Fair value | 79,635 | 79,504 |
Due after ten years, Amortized Cost | 165,001 | 186,085 |
Due after ten years, Fair value | 179,428 | 194,544 |
Total Amortized Cost | 260,898 | 272,582 |
Available for sale | $ 280,902 | 283,538 |
Qualified zone academy bond | ||
Debt Securities, Available-for-sale [Line Items] | ||
Due in one year or less, Amortized Cost | 6,155 | |
Due in one year or less, Fair value | 6,310 | |
Due after one year to five years, Amortized Cost | 0 | |
Due after one year to five years, Fair value | 0 | |
Due after five to ten years, Amortized Cost | 0 | |
Due after five to ten years, Fair value | 0 | |
Due after ten years, Amortized Cost | 0 | |
Due after ten years, Fair value | 0 | |
Total Amortized Cost | 6,155 | |
Available for sale | $ 6,310 |
Securities - Narrative (Detail)
Securities - Narrative (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |||
Available for sale | $ 3,183,861,000 | $ 1,508,236,000 | |
Gross realized gains from sales of available for sale securities | 300,000 | 2,100,000 | $ 200,000 |
Gross realized losses from sales of available for sale securities | 0 | 0 | 0 |
Other-than-temporary impairment was recorded | 0 | 0 | $ 0 |
Callable Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available for sale | $ 710,700,000 | $ 266,400,000 |
Securities - Summary Of Governm
Securities - Summary Of Government-Sponsored Residential Mortgage-Backed Securities With Gross Unrealized Losses (Detail) $ in Thousands | Dec. 31, 2020USD ($)loans | Dec. 31, 2019USD ($) |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Number of holdings | 6 | 3 |
Less than 12 months, gross unrealized losses | $ 3,872 | $ 548 |
Less than 12 months, fair value | 416,824 | 75,400 |
12 months or longer, gross unrealized losses | 0 | 0 |
12 months or longer, fair value | 0 | 0 |
Gross Unrealized Losses | 3,872 | 548 |
Fair Value | $ 416,824 | $ 75,400 |
U.S. Agency bonds | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Number of holdings | loans | 6 | |
Less than 12 months, gross unrealized losses | $ 3,872 | |
Less than 12 months, fair value | 416,824 | |
12 months or longer, gross unrealized losses | 0 | |
12 months or longer, fair value | 0 | |
Gross Unrealized Losses | 3,872 | |
Fair Value | $ 416,824 | |
Government-sponsored residential mortgage-backed securities | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Number of holdings | 1 | |
Less than 12 months, gross unrealized losses | $ 545 | |
Less than 12 months, fair value | 74,550 | |
12 months or longer, gross unrealized losses | 0 | |
12 months or longer, fair value | 0 | |
Gross Unrealized Losses | 545 | |
Fair Value | $ 74,550 | |
State and municipal bonds and obligations | ||
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Line Items] | ||
Number of holdings | 2 | |
Less than 12 months, gross unrealized losses | $ 3 | |
Less than 12 months, fair value | 850 | |
12 months or longer, gross unrealized losses | 0 | |
12 months or longer, fair value | 0 | |
Gross Unrealized Losses | 3 | |
Fair Value | $ 850 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of Company's Loan Portfolio as of the Dates Indicated (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Gross loans before unamortized premiums, unearned discounts and deferred fees | $ 9,730,525 | $ 8,987,046 | $ 8,856,003 | |
Allowance for credit losses | (113,031) | (82,297) | (80,655) | $ (74,111) |
Unamortized premiums, net of unearned discounts and deferred fees | (23,536) | (5,565) | ||
Net loans | 9,593,958 | 8,899,184 | ||
Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 1,995,016 | 1,642,184 | 1,658,765 | |
Allowance for credit losses | (26,617) | (20,919) | (19,321) | (14,892) |
Commercial real estate | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 3,573,630 | 3,535,441 | 3,211,118 | |
Allowance for credit losses | (54,569) | (34,730) | (32,400) | (30,807) |
Commercial Construction [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 305,708 | 273,774 | 313,209 | |
Allowance for credit losses | (4,553) | (3,424) | (4,606) | (5,588) |
Business Banking | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 1,339,164 | 771,498 | 740,938 | |
Allowance for credit losses | (13,152) | (8,260) | (8,167) | (6,497) |
Residential Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 1,370,957 | 1,428,630 | 1,430,764 | |
Allowance for credit losses | (6,435) | (6,380) | (7,059) | (6,954) |
Consumer Home Equity [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 868,270 | 933,088 | 949,410 | |
Allowance for credit losses | (3,744) | (4,027) | (4,113) | (4,040) |
Other consumer | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 277,780 | 402,431 | 551,799 | |
Allowance for credit losses | $ (3,467) | $ (4,173) | $ (4,600) | $ (4,751) |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Narrative (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in lines of credit,resrticted to commercial exposure | ||||
Loan syndications, amount | $ 100,000,000 | |||
Mortgage loans partially or wholly-owned by others and serviced by the Company | 13,500,000 | $ 15,600,000 | ||
Recorded investment | 9,593,958,000 | 8,899,184,000 | ||
Total loans | $ 9,730,525,000 | 8,987,046,000 | $ 8,856,003,000 | |
Maximum number of days required for special mention | 90 days | |||
Amount of specific reserve associated with the TDR | $ 3,500,000 | 3,200,000 | ||
Amount of additional commitments to lend to borrowers who have been a party to a TDR | 0 | 2,500,000 | ||
Outstanding recorded investment of loans that were new to troubled debt restructuring | 3,900,000 | 36,200,000 | ||
Amounts charged-off on TDRs | 200,000 | 0 | 1,500,000 | |
Loan participation interest held | $ 965,100,000 | 1,000,000,000 | ||
Payment Deferral | CARES Act | ||||
Changes in lines of credit,resrticted to commercial exposure | ||||
Loan modifications | 332,700,000 | |||
Commercial and industrial | ||||
Changes in lines of credit,resrticted to commercial exposure | ||||
Total loans | 1,995,016,000 | 1,642,184,000 | 1,658,765,000 | |
Business Banking | ||||
Changes in lines of credit,resrticted to commercial exposure | ||||
Total loans | 1,339,164,000 | 771,498,000 | $ 740,938,000 | |
FHLB advances | ||||
Changes in lines of credit,resrticted to commercial exposure | ||||
Carrying value of loans pledged to secure advances from federal banks | 2,400,000,000 | 1,500,000,000 | ||
Funds borrowed from federal banks | 14,600,000 | 19,000,000 | ||
Federal Reserve Bank Advances | ||||
Changes in lines of credit,resrticted to commercial exposure | ||||
Carrying value of loans pledged to secure advances from federal banks | 900,000,000 | 1,000,000,000 | ||
Funds borrowed from federal banks | 0 | 0 | ||
Nonperforming Loans | ||||
Changes in lines of credit,resrticted to commercial exposure | ||||
Total loans | 7,213,518,000 | 6,222,897,000 | ||
Nonperforming Loans | Commercial and industrial | ||||
Changes in lines of credit,resrticted to commercial exposure | ||||
Total loans | 1,995,016,000 | 1,642,184,000 | ||
Nonperforming Loans | Business Banking | ||||
Changes in lines of credit,resrticted to commercial exposure | ||||
Total loans | 1,339,164,000 | 771,498,000 | ||
Unrated | Nonperforming Loans | ||||
Changes in lines of credit,resrticted to commercial exposure | ||||
Total loans | 1,580,852,000 | 644,024,000 | ||
Unrated | Nonperforming Loans | Commercial and industrial | ||||
Changes in lines of credit,resrticted to commercial exposure | ||||
Total loans | 655,346,000 | 150,226,000 | ||
Unrated | Nonperforming Loans | Business Banking | ||||
Changes in lines of credit,resrticted to commercial exposure | ||||
Total loans | 918,921,000 | 445,201,000 | ||
Unrated | Nonperforming Loans | Paycheck Protection Program | Commercial and industrial | ||||
Changes in lines of credit,resrticted to commercial exposure | ||||
Total loans | 568,800,000 | |||
Unrated | Nonperforming Loans | Paycheck Protection Program | Business Banking | ||||
Changes in lines of credit,resrticted to commercial exposure | ||||
Total loans | 457,400,000 | |||
Unrated | Line of Credit | Commercial and industrial | ||||
Changes in lines of credit,resrticted to commercial exposure | ||||
Lines of credit, exposure | 1,000,000 | |||
Unrated | Line of Credit | Business Banking | ||||
Changes in lines of credit,resrticted to commercial exposure | ||||
Lines of credit, exposure | 100,000 | |||
Loss | ||||
Changes in lines of credit,resrticted to commercial exposure | ||||
Recorded investment | 0 | |||
Loss | Nonperforming Loans | ||||
Changes in lines of credit,resrticted to commercial exposure | ||||
Total loans | 0 | 0 | ||
Loss | Nonperforming Loans | Commercial and industrial | ||||
Changes in lines of credit,resrticted to commercial exposure | ||||
Total loans | 0 | 0 | ||
Loss | Nonperforming Loans | Business Banking | ||||
Changes in lines of credit,resrticted to commercial exposure | ||||
Total loans | $ 0 | $ 0 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Summarizes the Changes in the Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of period | $ 82,297 | $ 80,655 | $ 74,111 |
Loans charged off | (9,853) | (9,499) | (12,461) |
Recoveries | 1,787 | 4,841 | 3,905 |
Provision for loan losses | 38,800 | 6,300 | 15,100 |
Balance at end of period | $ 113,031 | $ 82,297 | $ 80,655 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Summary of Changes in Allowance for Loan Losses by Loan Category (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of period | $ 82,297 | $ 80,655 | $ 74,111 |
Financing Receivable, Allowance for Credit Loss, Writeoff | (9,853) | (9,499) | (12,461) |
Financing Receivable, Allowance for Credit Loss, Recovery | 1,787 | 4,841 | 3,905 |
Provision for loan losses | 38,800 | 6,300 | 15,100 |
Balance at end of period | 113,031 | 82,297 | 80,655 |
Ending balance: individually evaluated for impairment | 8,054 | 4,669 | 3,694 |
Ending balance: acquired with deteriorated credit quality | 2,432 | 1,192 | 813 |
Ending balance: collectively evaluated for impairment | 102,545 | 76,436 | 76,148 |
Loans ending balance: | |||
Individually evaluated for impairment | 75,609 | 87,756 | 64,898 |
Acquired with deteriorated credit quality | 9,297 | 13,451 | 16,891 |
Collectively evaluated for impairment | 9,645,619 | 8,885,839 | 8,774,214 |
Total loans | 9,730,525 | 8,987,046 | 8,856,003 |
Commercial and industrial | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of period | 20,919 | 19,321 | 14,892 |
Financing Receivable, Allowance for Credit Loss, Writeoff | (1,770) | (1,123) | (3,646) |
Financing Receivable, Allowance for Credit Loss, Recovery | 778 | 3,748 | 2,753 |
Provision for loan losses | 6,690 | (1,027) | 5,322 |
Balance at end of period | 26,617 | 20,919 | 19,321 |
Ending balance: individually evaluated for impairment | 4,555 | 2,337 | 1,361 |
Ending balance: acquired with deteriorated credit quality | 1,283 | 936 | 239 |
Ending balance: collectively evaluated for impairment | 20,779 | 17,646 | 17,721 |
Loans ending balance: | |||
Individually evaluated for impairment | 17,343 | 32,370 | 13,954 |
Acquired with deteriorated credit quality | 3,432 | 3,571 | 4,904 |
Collectively evaluated for impairment | 1,974,241 | 1,606,243 | 1,639,907 |
Total loans | 1,995,016 | 1,642,184 | 1,658,765 |
Commercial real estate | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of period | 34,730 | 32,400 | 30,807 |
Financing Receivable, Allowance for Credit Loss, Writeoff | (24) | 0 | (49) |
Financing Receivable, Allowance for Credit Loss, Recovery | 230 | 12 | 132 |
Provision for loan losses | 19,633 | 2,318 | 1,510 |
Balance at end of period | 54,569 | 34,730 | 32,400 |
Ending balance: individually evaluated for impairment | 210 | 40 | 38 |
Ending balance: acquired with deteriorated credit quality | 822 | 0 | 181 |
Ending balance: collectively evaluated for impairment | 53,537 | 34,690 | 32,181 |
Loans ending balance: | |||
Individually evaluated for impairment | 4,435 | 7,641 | 10,579 |
Acquired with deteriorated credit quality | 2,749 | 6,459 | 7,853 |
Collectively evaluated for impairment | 3,566,446 | 3,521,341 | 3,192,686 |
Total loans | 3,573,630 | 3,535,441 | 3,211,118 |
Commercial Construction [Member] | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of period | 3,424 | 4,606 | 5,588 |
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | 0 | 0 |
Financing Receivable, Allowance for Credit Loss, Recovery | 0 | 0 | 0 |
Provision for loan losses | 1,129 | (1,182) | (982) |
Balance at end of period | 4,553 | 3,424 | 4,606 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 |
Ending balance: acquired with deteriorated credit quality | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 4,553 | 3,424 | 4,606 |
Loans ending balance: | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Acquired with deteriorated credit quality | 0 | 0 | 0 |
Collectively evaluated for impairment | 305,708 | 273,774 | 313,209 |
Total loans | 305,708 | 273,774 | 313,209 |
Business Banking | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of period | 8,260 | 8,167 | 6,497 |
Financing Receivable, Allowance for Credit Loss, Writeoff | (5,147) | (5,974) | (6,345) |
Financing Receivable, Allowance for Credit Loss, Recovery | 292 | 604 | 375 |
Provision for loan losses | 9,747 | 5,463 | 7,640 |
Balance at end of period | 13,152 | 8,260 | 8,167 |
Ending balance: individually evaluated for impairment | 1,435 | 571 | 154 |
Ending balance: acquired with deteriorated credit quality | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 11,717 | 7,689 | 8,013 |
Loans ending balance: | |||
Individually evaluated for impairment | 21,901 | 11,658 | 7,704 |
Acquired with deteriorated credit quality | 0 | 0 | 0 |
Collectively evaluated for impairment | 1,317,263 | 759,840 | 733,234 |
Total loans | 1,339,164 | 771,498 | 740,938 |
Residential Portfolio Segment [Member] | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of period | 6,380 | 7,059 | 6,954 |
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | (66) | (27) |
Financing Receivable, Allowance for Credit Loss, Recovery | 125 | 105 | 152 |
Provision for loan losses | (70) | (718) | (20) |
Balance at end of period | 6,435 | 6,380 | 7,059 |
Ending balance: individually evaluated for impairment | 1,565 | 1,399 | 1,804 |
Ending balance: acquired with deteriorated credit quality | 327 | 256 | 393 |
Ending balance: collectively evaluated for impairment | 4,543 | 4,725 | 4,862 |
Loans ending balance: | |||
Individually evaluated for impairment | 27,056 | 29,532 | 27,713 |
Acquired with deteriorated credit quality | 3,116 | 3,421 | 4,134 |
Collectively evaluated for impairment | 1,340,785 | 1,395,677 | 1,398,917 |
Total loans | 1,370,957 | 1,428,630 | 1,430,764 |
Consumer Home Equity [Member] | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of period | 4,027 | 4,113 | 4,040 |
Financing Receivable, Allowance for Credit Loss, Writeoff | (574) | (205) | (285) |
Financing Receivable, Allowance for Credit Loss, Recovery | 153 | 52 | 60 |
Provision for loan losses | 138 | 67 | 298 |
Balance at end of period | 3,744 | 4,027 | 4,113 |
Ending balance: individually evaluated for impairment | 289 | 322 | 337 |
Ending balance: acquired with deteriorated credit quality | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 3,455 | 3,705 | 3,776 |
Loans ending balance: | |||
Individually evaluated for impairment | 4,845 | 6,555 | 4,948 |
Acquired with deteriorated credit quality | 0 | 0 | 0 |
Collectively evaluated for impairment | 863,425 | 926,533 | 944,462 |
Total loans | 868,270 | 933,088 | 949,410 |
Other consumer | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of period | 4,173 | 4,600 | 4,751 |
Financing Receivable, Allowance for Credit Loss, Writeoff | (2,338) | (2,131) | (2,109) |
Financing Receivable, Allowance for Credit Loss, Recovery | 209 | 320 | 433 |
Provision for loan losses | 1,423 | 1,384 | 1,525 |
Balance at end of period | 3,467 | 4,173 | 4,600 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 |
Ending balance: acquired with deteriorated credit quality | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 3,467 | 4,173 | 4,600 |
Loans ending balance: | |||
Individually evaluated for impairment | 29 | 0 | 0 |
Acquired with deteriorated credit quality | 0 | 0 | 0 |
Collectively evaluated for impairment | 277,751 | 402,431 | 551,799 |
Total loans | 277,780 | 402,431 | 551,799 |
Other | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at the beginning of period | 384 | 389 | 582 |
Financing Receivable, Allowance for Credit Loss, Writeoff | 0 | 0 | 0 |
Financing Receivable, Allowance for Credit Loss, Recovery | 0 | 0 | 0 |
Provision for loan losses | 110 | (5) | (193) |
Balance at end of period | 494 | 384 | 389 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 |
Ending balance: acquired with deteriorated credit quality | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 494 | 384 | 389 |
Loans ending balance: | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Acquired with deteriorated credit quality | 0 | 0 | 0 |
Collectively evaluated for impairment | 0 | 0 | 0 |
Total loans | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Summary of Internal Risk-Rating Categories (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | $ 9,730,525 | $ 8,987,046 | $ 8,856,003 |
Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 7,213,518 | 6,222,897 | |
Unrated | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 1,580,852 | 644,024 | |
Pass | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 5,073,668 | 5,417,978 | |
Special mention | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 280,101 | 64,221 | |
Substandard | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 260,207 | 76,126 | |
Doubtful | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 18,690 | 20,548 | |
Loss | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 0 | 0 | |
Commercial and industrial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 1,995,016 | 1,642,184 | 1,658,765 |
Commercial and industrial | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 1,995,016 | 1,642,184 | |
Commercial and industrial | Unrated | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 655,346 | 150,226 | |
Commercial and industrial | Pass | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 1,199,522 | 1,405,902 | |
Commercial and industrial | Special mention | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 78,117 | 24,171 | |
Commercial and industrial | Substandard | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 47,525 | 42,894 | |
Commercial and industrial | Doubtful | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 14,506 | 18,991 | |
Commercial and industrial | Loss | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 0 | 0 | |
Commercial real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 3,573,630 | 3,535,441 | 3,211,118 |
Commercial real estate | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 3,573,630 | 3,535,441 | |
Commercial real estate | Unrated | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 6,585 | 48,266 | |
Commercial real estate | Pass | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 3,256,697 | 3,436,267 | |
Commercial real estate | Special mention | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 134,562 | 28,606 | |
Commercial real estate | Substandard | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 173,308 | 21,635 | |
Commercial real estate | Doubtful | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 2,478 | 667 | |
Commercial real estate | Loss | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 0 | 0 | |
Commercial Construction [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 305,708 | 273,774 | 313,209 |
Commercial Construction [Member] | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 305,708 | 273,774 | |
Commercial Construction [Member] | Unrated | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 0 | 331 | |
Commercial Construction [Member] | Pass | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 280,792 | 260,615 | |
Commercial Construction [Member] | Special mention | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 10,330 | 9,438 | |
Commercial Construction [Member] | Substandard | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 14,586 | 3,390 | |
Commercial Construction [Member] | Doubtful | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 0 | 0 | |
Commercial Construction [Member] | Loss | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 0 | 0 | |
Business Banking | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 1,339,164 | 771,498 | $ 740,938 |
Business Banking | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 1,339,164 | 771,498 | |
Business Banking | Unrated | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 918,921 | 445,201 | |
Business Banking | Pass | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 336,657 | 315,194 | |
Business Banking | Special mention | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 57,092 | 2,006 | |
Business Banking | Substandard | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 24,788 | 8,207 | |
Business Banking | Doubtful | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | 1,706 | 890 | |
Business Banking | Loss | Nonperforming Loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans before unamortized premiums, unearned discounts and deferred fees | $ 0 | $ 0 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Summary Pertaining to the Breakdown of the Company's Nonaccrual Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure Detail Of Non Accrual Loans [Line Items] | ||
Total non-accrual loans | $ 41,005 | $ 42,451 |
Commercial and industrial | ||
Disclosure Detail Of Non Accrual Loans [Line Items] | ||
Total non-accrual loans | 11,714 | 21,471 |
Commercial real estate | ||
Disclosure Detail Of Non Accrual Loans [Line Items] | ||
Total non-accrual loans | 915 | 4,120 |
Commercial Construction [Member] | ||
Disclosure Detail Of Non Accrual Loans [Line Items] | ||
Total non-accrual loans | 0 | 0 |
Business banking | ||
Disclosure Detail Of Non Accrual Loans [Line Items] | ||
Total non-accrual loans | 17,430 | 8,502 |
Residential real estate | ||
Disclosure Detail Of Non Accrual Loans [Line Items] | ||
Total non-accrual loans | 6,815 | 5,598 |
Consumer home equity | ||
Disclosure Detail Of Non Accrual Loans [Line Items] | ||
Total non-accrual loans | 3,602 | 2,137 |
Other consumer | ||
Disclosure Detail Of Non Accrual Loans [Line Items] | ||
Total non-accrual loans | $ 529 | $ 623 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Summary of Shows the Age Analysis of Past Due Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | $ 47,622 | $ 44,235 | |
Current | 9,682,903 | 8,942,811 | |
Total loans | 9,730,525 | 8,987,046 | $ 8,856,003 |
Recorded Investment > 90 Days and Accruing | 2,247 | 1,324 | |
30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 18,251 | 25,706 | |
60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 7,250 | 4,370 | |
90 or More Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 22,121 | 14,159 | |
Commercial and industrial | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,196 | 2,370 | |
Current | 1,992,820 | 1,639,814 | |
Total loans | 1,995,016 | 1,642,184 | 1,658,765 |
Recorded Investment > 90 Days and Accruing | 848 | 0 | |
Commercial and industrial | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 4 | 1,407 | |
Commercial and industrial | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 268 | 0 | |
Commercial and industrial | 90 or More Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,924 | 963 | |
Commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,101 | 3,246 | |
Current | 3,571,529 | 3,532,195 | |
Total loans | 3,573,630 | 3,535,441 | 3,211,118 |
Recorded Investment > 90 Days and Accruing | 1,111 | 1,315 | |
Commercial real estate | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 1,290 | |
Commercial real estate | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 556 | 100 | |
Commercial real estate | 90 or More Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,545 | 1,856 | |
Commercial Construction [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 305,708 | 273,774 | |
Total loans | 305,708 | 273,774 | 313,209 |
Recorded Investment > 90 Days and Accruing | 0 | 0 | |
Commercial Construction [Member] | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Commercial Construction [Member] | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Commercial Construction [Member] | 90 or More Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Business banking | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 18,786 | 9,889 | |
Current | 1,320,378 | 761,609 | |
Total loans | 1,339,164 | 771,498 | |
Recorded Investment > 90 Days and Accruing | 0 | 0 | |
Business banking | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 5,279 | 3,031 | |
Business banking | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 3,311 | 763 | |
Business banking | 90 or More Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 10,196 | 6,095 | |
Residential real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 16,605 | 19,623 | |
Current | 1,354,352 | 1,409,007 | |
Total loans | 1,370,957 | 1,428,630 | |
Recorded Investment > 90 Days and Accruing | 279 | 0 | |
Residential real estate | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 9,184 | 14,030 | |
Residential real estate | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,517 | 2,563 | |
Residential real estate | 90 or More Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 4,904 | 3,030 | |
Consumer home equity | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 5,205 | 4,563 | |
Current | 863,065 | 928,525 | |
Total loans | 868,270 | 933,088 | |
Recorded Investment > 90 Days and Accruing | 9 | 9 | |
Consumer home equity | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,806 | 2,497 | |
Consumer home equity | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 364 | 430 | |
Consumer home equity | 90 or More Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 3,035 | 1,636 | |
Other consumer | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,729 | 4,544 | |
Current | 275,051 | 397,887 | |
Total loans | 277,780 | 402,431 | $ 551,799 |
Recorded Investment > 90 Days and Accruing | 0 | 0 | |
Other consumer | 30-59 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,978 | 3,451 | |
Other consumer | 60-89 Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 234 | 514 | |
Other consumer | 90 or More Days Past Due | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | $ 517 | $ 579 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Summary of TDR Loans on Accrual and Nonaccrual (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2020loans | Jun. 30, 2020loans | Dec. 31, 2020USD ($)loans | Dec. 31, 2020USD ($)contract | Dec. 31, 2019USD ($)contract | Dec. 31, 2018contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Loans | 298 | 301 | 40 | 40 | 31 | |
Balance of Loans | $ 53,204 | $ 53,204 | $ 76,523 | |||
Special Mention | Contractual Obligation Modification | TDRs on Accrual Status | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Loans | loans | 248 | 248 | ||||
Balance of Loans | $ 41,095 | $ 41,095 | 48,623 | |||
Special Mention | Contractual Obligation Modification | TDRs on Non-accrual Status | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Loans | 50 | 53 | ||||
Balance of Loans | $ 12,109 | $ 12,109 | 27,900 | |||
Commercial and industrial | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Loans | loans | 18 | 8 | ||||
Balance of Loans | $ 12,447 | 12,447 | 30,680 | |||
Commercial and industrial | Special Mention | Contractual Obligation Modification | TDRs on Accrual Status | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Loans | loans | 4 | 1 | ||||
Balance of Loans | $ 5,628 | 5,628 | 10,899 | |||
Commercial and industrial | Special Mention | Contractual Obligation Modification | TDRs on Non-accrual Status | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Loans | loans | 14 | 7 | ||||
Balance of Loans | $ 6,819 | $ 6,819 | $ 19,781 | |||
Commercial real estate | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Loans | 4 | 2 | 1 | 2 | 0 | |
Balance of Loans | $ 4,001 | $ 4,001 | $ 6,858 | |||
Commercial real estate | Special Mention | Contractual Obligation Modification | TDRs on Accrual Status | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Loans | loans | 1 | 1 | ||||
Balance of Loans | $ 3,521 | 3,521 | 3,520 | |||
Commercial real estate | Special Mention | Contractual Obligation Modification | TDRs on Non-accrual Status | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Loans | loans | 3 | 1 | ||||
Balance of Loans | $ 480 | $ 480 | $ 3,338 | |||
Business banking | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Loans | 3 | 12 | 6 | 2 | 0 | |
Balance of Loans | $ 5,193 | $ 5,193 | $ 3,360 | |||
Business banking | Special Mention | Contractual Obligation Modification | TDRs on Accrual Status | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Loans | loans | 2 | 6 | ||||
Balance of Loans | $ 4,471 | 4,471 | 3,156 | |||
Business banking | Special Mention | Contractual Obligation Modification | TDRs on Non-accrual Status | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Loans | loans | 1 | 6 | ||||
Balance of Loans | $ 722 | $ 722 | $ 204 | |||
Residential real estate | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Loans | 179 | 173 | 6 | 11 | 14 | |
Balance of Loans | $ 26,689 | $ 26,689 | $ 29,070 | |||
Residential real estate | Special Mention | Contractual Obligation Modification | TDRs on Accrual Status | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Loans | loans | 152 | 146 | ||||
Balance of Loans | $ 23,416 | 23,416 | 25,093 | |||
Residential real estate | Special Mention | Contractual Obligation Modification | TDRs on Non-accrual Status | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Loans | loans | 27 | 27 | ||||
Balance of Loans | $ 3,273 | $ 3,273 | $ 3,977 | |||
Consumer home equity | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Loans | 94 | 103 | 22 | 9 | 10 | |
Balance of Loans | $ 4,845 | $ 4,845 | $ 6,555 | |||
Consumer home equity | Special Mention | Contractual Obligation Modification | TDRs on Accrual Status | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Loans | loans | 89 | 91 | ||||
Balance of Loans | $ 4,030 | 4,030 | 5,955 | |||
Consumer home equity | Special Mention | Contractual Obligation Modification | TDRs on Non-accrual Status | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Loans | loans | 5 | 12 | ||||
Balance of Loans | $ 815 | $ 815 | $ 600 | |||
Other consumer | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Loans | 3 | 4 | 0 | 0 | ||
Balance of Loans | $ 29 | $ 29 | ||||
Other consumer | Special Mention | Contractual Obligation Modification | TDRs on Accrual Status | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Loans | loans | 3 | |||||
Balance of Loans | $ 29 | 29 | ||||
Other consumer | Special Mention | Contractual Obligation Modification | TDRs on Non-accrual Status | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Loans | loans | 0 | |||||
Balance of Loans | $ 0 | $ 0 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Summary of the Modifications Which Occurred During the Periods and the Change in the Recorded Investment Subsequent to the Modifications Occurring (Detail) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020loans | Dec. 31, 2020loans | Dec. 31, 2020contract | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)contract | Dec. 31, 2018USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Contracts | 298 | 301 | 40 | 40 | 31 | |
Pre- Modification Outstanding Recorded Investment | $ 4,235 | $ 30,085 | $ 9,283 | |||
Post-Modification Modification Outstanding Recorded Investment | 4,239 | $ 30,761 | $ 10,192 | |||
Commercial and industrial | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Contracts | contract | 1 | 16 | 7 | |||
Pre- Modification Outstanding Recorded Investment | 140 | $ 18,912 | $ 5,926 | |||
Post-Modification Modification Outstanding Recorded Investment | 140 | $ 19,212 | $ 6,786 | |||
Commercial real estate | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Contracts | 4 | 2 | 1 | 2 | 0 | |
Pre- Modification Outstanding Recorded Investment | 506 | $ 3,277 | $ 0 | |||
Post-Modification Modification Outstanding Recorded Investment | 506 | $ 3,277 | $ 0 | |||
Business banking | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Contracts | 3 | 12 | 6 | 2 | 0 | |
Pre- Modification Outstanding Recorded Investment | 1,642 | $ 3,184 | $ 0 | |||
Post-Modification Modification Outstanding Recorded Investment | 1,642 | $ 3,184 | $ 0 | |||
Residential real estate | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Contracts | 179 | 173 | 6 | 11 | 14 | |
Pre- Modification Outstanding Recorded Investment | 920 | $ 2,659 | $ 2,235 | |||
Post-Modification Modification Outstanding Recorded Investment | 920 | $ 2,696 | $ 2,278 | |||
Consumer home equity | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Contracts | 94 | 103 | 22 | 9 | 10 | |
Pre- Modification Outstanding Recorded Investment | 969 | $ 2,053 | $ 1,122 | |||
Post-Modification Modification Outstanding Recorded Investment | 973 | $ 2,392 | $ 1,128 | |||
Other consumer | ||||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||||
Number of Contracts | 3 | 4 | 0 | 0 | ||
Pre- Modification Outstanding Recorded Investment | 58 | $ 0 | $ 0 | |||
Post-Modification Modification Outstanding Recorded Investment | $ 58 | $ 0 | $ 0 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Summary of Post-modification Balance of TDRs listed by Type of Modification (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post modification balance of TDRs | $ 4,239 | $ 30,761 | $ 10,192 |
Adjusted interest rate and extended maturity | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post modification balance of TDRs | 0 | 1,513 | 1,338 |
Adjusted interest rate and principal deferred | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post modification balance of TDRs | 0 | 39 | 715 |
Adjusted interest rate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post modification balance of TDRs | 0 | 3,352 | 676 |
Interest only/principal deferred | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post modification balance of TDRs | 1,305 | 2,769 | 5,926 |
Extended maturity | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post modification balance of TDRs | 35 | 0 | 0 |
Extended maturity and interest only/principal deferred | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post modification balance of TDRs | 427 | 47 | 677 |
Additional underwriting- increased exposure | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post modification balance of TDRs | 0 | 10,822 | 0 |
Principal and interest deferred | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post modification balance of TDRs | 422 | 0 | 0 |
Court-ordered concession | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post modification balance of TDRs | 1,995 | 355 | 0 |
Subordination | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post modification balance of TDRs | 0 | 11,032 | 0 |
Other | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Post modification balance of TDRs | $ 55 | $ 832 | $ 860 |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses - Summary of Company Considers a Loan to Have Defaulted When it Reaches 90 Days Past Due or is Transferred to Nonaccrual (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)contract | Dec. 31, 2019USD ($)contract | Dec. 31, 2018USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | contract | 1 | 12 | 2 |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $ | $ 40 | $ 21,933 | $ 260 |
Commercial and industrial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | contract | 0 | 10 | 0 |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $ | $ 0 | $ 18,808 | $ 0 |
Commercial real estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | contract | 0 | 2 | 0 |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $ | $ 0 | $ 3,125 | $ 0 |
Residential real estate | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | contract | 0 | 0 | 1 |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $ | $ 0 | $ 0 | $ 144 |
Consumer home equity | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | contract | 1 | 0 | 1 |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default | $ | $ 40 | $ 0 | $ 116 |
Loans and Allowance for Loan_14
Loans and Allowance for Loan Losses - Summary of Company's Impaired Loans by Loan Portfolio (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable, with no related allowance, Recorded Investment | $ 35,717 | $ 52,548 |
Impaired financing receivable, with no related allowance, Unpaid Principal Balance | 42,455 | 56,244 |
Impaired financing receivable, with no related allowance, Recorded Investment | 39,892 | 35,208 |
Impaired financing receivable, with no related allowance, Unpaid Principal Balance | 44,675 | 40,754 |
Impaired financing receivable, Related Allowance | 8,054 | 4,669 |
Impaired financing receivable, Recorded Investment | 75,609 | 87,756 |
Impaired financing receivable, Unpaid Principal Balance | 87,130 | 96,998 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable, with no related allowance, Recorded Investment | 9,182 | 22,074 |
Impaired financing receivable, with no related allowance, Unpaid Principal Balance | 11,212 | 22,819 |
Impaired financing receivable, with no related allowance, Recorded Investment | 8,161 | 10,296 |
Impaired financing receivable, with no related allowance, Unpaid Principal Balance | 8,432 | 10,503 |
Impaired financing receivable, Related Allowance | 4,555 | 2,337 |
Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable, with no related allowance, Recorded Investment | 3,955 | 7,553 |
Impaired financing receivable, with no related allowance, Unpaid Principal Balance | 3,974 | 7,808 |
Impaired financing receivable, with no related allowance, Recorded Investment | 480 | 88 |
Impaired financing receivable, with no related allowance, Unpaid Principal Balance | 497 | 90 |
Impaired financing receivable, Related Allowance | 210 | 40 |
Business banking | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable, with no related allowance, Recorded Investment | 5,250 | 2,738 |
Impaired financing receivable, with no related allowance, Unpaid Principal Balance | 7,659 | 4,062 |
Impaired financing receivable, with no related allowance, Recorded Investment | 16,651 | 8,920 |
Impaired financing receivable, with no related allowance, Unpaid Principal Balance | 21,146 | 13,176 |
Impaired financing receivable, Related Allowance | 1,435 | 571 |
Residential real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable, with no related allowance, Recorded Investment | 14,730 | 16,517 |
Impaired financing receivable, with no related allowance, Unpaid Principal Balance | 17,010 | 17,858 |
Impaired financing receivable, with no related allowance, Recorded Investment | 12,326 | 13,015 |
Impaired financing receivable, with no related allowance, Unpaid Principal Balance | 12,326 | 14,072 |
Impaired financing receivable, Related Allowance | 1,565 | 1,399 |
Consumer home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable, with no related allowance, Recorded Investment | 2,571 | 3,666 |
Impaired financing receivable, with no related allowance, Unpaid Principal Balance | 2,571 | 3,697 |
Impaired financing receivable, with no related allowance, Recorded Investment | 2,274 | 2,889 |
Impaired financing receivable, with no related allowance, Unpaid Principal Balance | 2,274 | 2,913 |
Impaired financing receivable, Related Allowance | 289 | 322 |
Other consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired financing receivable, with no related allowance, Recorded Investment | 29 | 0 |
Impaired financing receivable, with no related allowance, Unpaid Principal Balance | $ 29 | $ 0 |
Loans and Allowance for Loan_15
Loans and Allowance for Loan Losses - Summary of Information Regarding Interest Income Recognized on Impaired Loans,by Portfolio (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, Average Recorded Investment | $ 39,062 | $ 48,124 | $ 34,912 |
Impaired financing receivable, with no related allowance, Total Interest Recognized | 1,154 | 1,659 | 1,308 |
Impaired financing receivable, with related allowance, Average Recorded Investment | 36,782 | 28,738 | 32,282 |
Impaired financing receivable, with related allowance, Total Interest Recognized | 660 | 713 | 747 |
Impaired financing receivable, Average Recorded Investment | 75,844 | 76,862 | 67,194 |
Impaired financing receivable, Total Interest Recognized | 1,814 | 2,372 | 2,055 |
Commercial and industrial | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, Average Recorded Investment | 12,941 | 17,695 | 10,797 |
Impaired financing receivable, with no related allowance, Total Interest Recognized | 206 | 615 | 429 |
Impaired financing receivable, with related allowance, Average Recorded Investment | 7,947 | 6,141 | 5,647 |
Impaired financing receivable, with related allowance, Total Interest Recognized | 0 | 0 | 0 |
Commercial real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, Average Recorded Investment | 5,124 | 9,987 | 8,993 |
Impaired financing receivable, with no related allowance, Total Interest Recognized | 179 | 179 | 328 |
Impaired financing receivable, with related allowance, Average Recorded Investment | 644 | 391 | 919 |
Impaired financing receivable, with related allowance, Total Interest Recognized | 0 | 0 | 0 |
Business banking | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, Average Recorded Investment | 3,008 | 2,072 | 1,298 |
Impaired financing receivable, with no related allowance, Total Interest Recognized | 92 | 70 | 0 |
Impaired financing receivable, with related allowance, Average Recorded Investment | 13,663 | 7,730 | 7,015 |
Impaired financing receivable, with related allowance, Total Interest Recognized | 62 | 86 | 0 |
Residential real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, Average Recorded Investment | 14,654 | 15,501 | 11,880 |
Impaired financing receivable, with no related allowance, Total Interest Recognized | 589 | 671 | 470 |
Impaired financing receivable, with related allowance, Average Recorded Investment | 12,194 | 12,215 | 16,072 |
Impaired financing receivable, with related allowance, Total Interest Recognized | 521 | 528 | 636 |
Consumer home equity | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, Average Recorded Investment | 3,299 | 2,869 | 1,944 |
Impaired financing receivable, with no related allowance, Total Interest Recognized | 87 | 124 | 81 |
Impaired financing receivable, with related allowance, Average Recorded Investment | 2,334 | 2,261 | 2,629 |
Impaired financing receivable, with related allowance, Total Interest Recognized | 77 | 99 | 111 |
Other consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired financing receivable, with no related allowance, Average Recorded Investment | 36 | 0 | 0 |
Impaired financing receivable, with no related allowance, Total Interest Recognized | 1 | 0 | 0 |
Impaired financing receivable, with related allowance, Average Recorded Investment | 0 | 0 | 0 |
Impaired financing receivable, with related allowance, Total Interest Recognized | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Loan_16
Loans and Allowance for Loan Losses - Summary of Outstanding and Carrying Amounts of PCI Loans (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | ||||
Financing receivable, purchased with credit deterioration, amount at purchase price | $ 75,609 | $ 87,756 | $ 64,898 | |
Outstanding balance | ||||
Financing Receivable, Impaired [Line Items] | ||||
Financing receivable, purchased with credit deterioration, amount at purchase price | $ 15,149 | 9,982 | ||
Carrying amount | ||||
Financing Receivable, Impaired [Line Items] | ||||
Financing receivable, purchased with credit deterioration, amount at purchase price | $ 13,451 | $ 9,297 |
Loans and Allowance for Loan_17
Loans and Allowance for Loan Losses - Summary of Activity in the Accretable Yield for the PCI Loan Portfolio (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Balance at beginning of period | $ 3,923 | $ 6,161 | $ 7,618 |
Acquisition | 0 | 0 | 0 |
Accretion | (1,374) | (2,132) | (2,559) |
Other change in expected cash flows | (185) | (898) | (680) |
Reclassification (to) from non-accretable difference for loans with (deteriorated) improved cash flows | 131 | 792 | 1,782 |
Balance at end of period | $ 2,495 | $ 3,923 | $ 6,161 |
Loans and Allowance for Loan_18
Loans and Allowance for Loan Losses - Summary of the Company's Loan Participations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | $ 9,730,525 | $ 8,987,046 | $ 8,856,003 | |
Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 1,995,016 | 1,642,184 | 1,658,765 | |
Commercial real estate | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 3,573,630 | 3,535,441 | 3,211,118 | |
Commercial Construction [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 305,708 | 273,774 | $ 313,209 | |
Business banking | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total loans | 1,339,164 | 771,498 | ||
Loan Participations and Assignments | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Balance | $ 1,024,709 | $ 965,149 | ||
Non-performing Loan Rate (%) | 0.65% | 1.68% | ||
Impaired (%) | 0.65% | 1.68% | ||
Gross Charge-offs | $ 0 | $ 15 | ||
Loan Participations and Assignments | Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Balance | $ 598,873 | $ 586,346 | ||
Non-performing Loan Rate (%) | 1.11% | 2.76% | ||
Impaired (%) | 1.11% | 2.76% | ||
Gross Charge-offs | 0 | $ 0 | ||
Loan Participations and Assignments | Commercial real estate | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Balance | $ 306,202 | $ 314,487 | ||
Non-performing Loan Rate (%) | 0.00% | 0.00% | ||
Impaired (%) | 0.00% | 0.00% | ||
Gross Charge-offs | 0 | $ 0 | ||
Loan Participations and Assignments | Commercial Construction [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Balance | $ 119,600 | $ 64,259 | ||
Non-performing Loan Rate (%) | 0.00% | 0.00% | ||
Impaired (%) | 0.00% | 0.00% | ||
Gross Charge-offs | 0 | $ 0 | ||
Loan Participations and Assignments | Business banking | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Balance | $ 34 | $ 57 | ||
Non-performing Loan Rate (%) | 0.00% | 0.00% | ||
Impaired (%) | 0.00% | 0.00% | ||
Gross Charge-offs | $ 0 | $ 15 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 156,002 | $ 157,652 | |
Accumulated depreciation | (107,334) | (101,085) | |
Premises and equipment used in operations, net | 48,668 | 56,567 | |
Premises and equipment held for sale | 730 | 886 | |
Net premises and equipment | 49,398 | 57,453 | |
Depreciation | 13,000 | 15,900 | $ 16,200 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | 7,410 | 7,410 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 58,112 | 57,075 | |
Buildings | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life | 5 years | ||
Buildings | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life | 30 years | ||
Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 55,919 | 57,720 | |
Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life | 3 years | ||
Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life | 5 years | ||
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total cost | $ 34,561 | $ 35,447 | |
Leasehold improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life | 5 years | ||
Leasehold improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated Useful Life | 25 years |
Leases - Narrative (Detail)
Leases - Narrative (Detail) - USD ($) $ in Millions | Jan. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of Leases [Line Items] | ||||
Payment of lease payments | $ 14.2 | |||
Rent expense under operating leases | $ 3.5 | |||
Real Estate | ||||
Disclosure of Leases [Line Items] | ||||
Rent expense under operating leases | $ 16.2 | $ 14.3 | ||
Equipment | ||||
Disclosure of Leases [Line Items] | ||||
Rent expense under operating leases | $ 0.7 | $ 0.7 | ||
Minimum | ||||
Disclosure of Leases [Line Items] | ||||
Operating lease remaining lease term | 1 year | |||
Maximum | ||||
Disclosure of Leases [Line Items] | ||||
Operating lease remaining lease term | 25 years |
Leases - Summary of Information
Leases - Summary of Information Relating to Operating Leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Jan. 01, 2020 |
Leases [Abstract] | ||
Right-of-use assets | $ 81,596 | $ 92,900 |
Lease liabilities | $ 85,330 | $ 96,400 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
Leases - Summary of Net Lease C
Leases - Summary of Net Lease Cost (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 14,402 |
Finance lease cost | 71 |
Variable lease cost | 1,982 |
Total lease cost | $ 16,455 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Operating Leases (Detail) | Dec. 31, 2020 |
Leases [Abstract] | |
Weighted-average remaining lease term (in years) | 8 years 6 months |
Weighted-average discount rate | 2.65% |
Leases - Summary of Reconciliat
Leases - Summary of Reconciliation to the Operating Lease Liability Recognized in the Company's Consolidated Balance Sheet in Other Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Jan. 01, 2020 |
Leases [Abstract] | ||
2021 | $ 13,748 | |
2022 | 12,733 | |
2023 | 12,190 | |
2024 | 11,430 | |
2025 | 10,575 | |
Thereafter | 35,070 | |
Total minimum lease payments | 95,746 | |
Less: amount representing interest | 10,416 | |
Present value of future minimum lease payments | $ 85,330 | $ 96,400 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles - Summary of Goodwill and Other Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Balances not subject to amortization | |||
Goodwill | $ 369,477 | $ 369,031 | $ 369,031 |
Balances subject to amortization | |||
Balances subject to amortization | 7,057 | 8,703 | |
Total other intangible assets | 7,057 | 8,703 | |
Total goodwill and other intangible assets | 376,534 | 377,734 | |
Insurance agency | |||
Balances subject to amortization | |||
Balances subject to amortization | 6,899 | 7,949 | |
Core deposits | |||
Balances subject to amortization | |||
Balances subject to amortization | 158 | 754 | |
Banking Business | |||
Balances not subject to amortization | |||
Goodwill | 298,611 | 298,611 | 298,611 |
Balances subject to amortization | |||
Total other intangible assets | 158 | 754 | |
Total goodwill and other intangible assets | 298,769 | 299,365 | |
Banking Business | Insurance agency | |||
Balances subject to amortization | |||
Balances subject to amortization | 0 | 0 | |
Banking Business | Core deposits | |||
Balances subject to amortization | |||
Balances subject to amortization | 158 | 754 | |
Insurance Agency Business | |||
Balances not subject to amortization | |||
Goodwill | 70,866 | 70,420 | $ 70,420 |
Balances subject to amortization | |||
Total other intangible assets | 6,899 | 7,949 | |
Total goodwill and other intangible assets | 77,765 | 78,369 | |
Insurance Agency Business | Insurance agency | |||
Balances subject to amortization | |||
Balances subject to amortization | 6,899 | 7,949 | |
Insurance Agency Business | Core deposits | |||
Balances subject to amortization | |||
Balances subject to amortization | $ 0 | $ 0 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles - Schedule of Goodwill Carrying Value (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Balance at beginning of year | $ 369,031 | $ 369,031 |
Goodwill recorded during the year | 446 | 0 |
Goodwill disposed of during the year | 0 | 0 |
Balance at end of year | 369,477 | 369,031 |
Banking Business | ||
Goodwill [Roll Forward] | ||
Balance at beginning of year | 298,611 | 298,611 |
Goodwill recorded during the year | 0 | 0 |
Goodwill disposed of during the year | 0 | 0 |
Balance at end of year | 298,611 | 298,611 |
Insurance Agency Business | ||
Goodwill [Roll Forward] | ||
Balance at beginning of year | 70,420 | 70,420 |
Goodwill recorded during the year | 446 | 0 |
Goodwill disposed of during the year | 0 | 0 |
Balance at end of year | $ 70,866 | $ 70,420 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles - Carrying Amount and Accumulated Amortization of Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 35,094 | $ 33,884 |
Accumulated Amortization | (28,037) | (25,181) |
Total amortization expense | 7,057 | 8,703 |
Insurance agency | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 28,515 | 27,305 |
Accumulated Amortization | (21,616) | (19,356) |
Total amortization expense | 6,899 | 7,949 |
Core deposits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6,579 | 6,579 |
Accumulated Amortization | (6,421) | (5,825) |
Total amortization expense | $ 158 | $ 754 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 2,857 | $ 3,542 | $ 3,891 |
Weighted average useful life | 10 years | ||
Non-compete intangible | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 5 years | ||
Core deposits | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 1 year |
Goodwill and Other Intangible_6
Goodwill and Other Intangibles - Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2021 | $ 2,125 | |
2022 | 1,606 | |
2023 | 1,174 | |
2024 | 878 | |
2025 | 603 | |
Thereafter | 671 | |
Total amortization expense | $ 7,057 | $ 8,703 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Banking and Thrift, Interest [Abstract] | |||
Money market investments | $ 6,600,000 | $ 4,700,000 | |
Other time deposits of $100,000 and greater | 115,300 | 157,600 | |
Interest expense related to deposits | 11,315 | 27,301 | $ 17,384 |
Carrying value of securities pledged as collateral | 31,300 | 21,900 | |
Time deposits equal to or grater than $250,000 | $ 59,100 | $ 85,200 |
Deposits - Summary of the Certi
Deposits - Summary of the Certificates of Deposits by Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Time Deposits, Fiscal Year Maturity [Abstract] | ||
2021 | $ 222,103 | |
2022 | 19,240 | |
2023 | 7,485 | |
2024 | 6,538 | |
2025 | 3,392 | |
Thereafter | 101 | |
Total certificates of deposit | $ 258,859 | $ 329,139 |
Weighted Average Rate of Time Deposits [Abstract] | ||
2021 | 85.80% | |
2022 | 7.40% | |
2023 | 2.90% | |
2024 | 2.50% | |
2025 | 1.30% | |
Thereafter | 0.10% | |
Total certificates of deposit | 100.00% |
Borrowed Funds - Summary of Bor
Borrowed Funds - Summary of Borrowed Funds (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Federal Home Loan Bank, Advances [Line Items] | ||
Total borrowed funds | $ 28,049 | $ 235,395 |
FHLB advances | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Total borrowed funds | 14,624 | 18,964 |
Escrow deposits of borrowers | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Total borrowed funds | 13,425 | 15,349 |
Interest rate swap collateral funds | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Total borrowed funds | 0 | 0 |
Federal funds purchased | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Total borrowed funds | $ 0 | $ 201,082 |
Borrowed Funds - Narrative (Det
Borrowed Funds - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Federal Home Loan Bank, Advances [Line Items] | |||
PPP loans available to be pledged to the Paycheck Protection Program Liquidity Facility | $ 1,000,000 | ||
Federal Home Loan Bank stock, at cost | 8,805 | $ 9,027 | |
Dividends received from investment in FHLB of Boston | 400 | 800 | $ 1,200 |
Federal Home Loan Bank of Boston | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Federal Home Loan Bank stock, at cost | 8,800 | 9,000 | |
Federal Home Loan Bank of Boston | FHLB advances | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Federal Home Loan Bank, available and unused borrowing capacity | 1,600,000 | 1,800,000 | |
Federal Home Loan Bank of Boston | FHLB advances | Residential Mortgage Backed Securities | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Federal Home Loan Bank, advances secured by mortgage-backed securities | 913,700 | 952,500 | |
Federal Home Loan Bank of Boston | FHLB advances | Commercial Mortgage Backed Securities | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Federal Home Loan Bank, advances secured by mortgage-backed securities | 741,500 | 150,100 | |
Federal Home Loan Bank of Boston | FHLB advances | Government-sponsored residential mortgage-backed securities | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Federal Home Loan Bank, advances secured by mortgage-backed securities | 801,100 | ||
Federal Reserve Bank Advances | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Federal Reserve Discount Window, available and unused borrowing capacity | $ 503,500 | $ 637,000 |
Borrowed Funds - Interest Expen
Borrowed Funds - Interest Expense on Borrowed Funds (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Federal Home Loan Bank, Advances [Line Items] | |||
Total interest expense on borrowed funds | $ 762 | $ 6,452 | $ 7,738 |
FHLB advances | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Total interest expense on borrowed funds | 190 | 2,406 | 3,885 |
Escrow deposits of borrowers | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Total interest expense on borrowed funds | 2 | 4 | 3 |
Interest rate swap collateral funds | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Total interest expense on borrowed funds | 0 | 66 | 466 |
Federal funds purchased | |||
Federal Home Loan Bank, Advances [Line Items] | |||
Total interest expense on borrowed funds | $ 570 | $ 3,976 | $ 3,384 |
Borrowed Funds - Summary of FHL
Borrowed Funds - Summary of FHLB of Boston Advances (Details) - Federal Home Loan Bank of Boston - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Amount | ||
Within one year | $ 0 | $ 4,946 |
Over one year to three years | 1,412 | 193 |
Over three years to five years | 2,309 | 1,587 |
Over five years | 10,903 | 12,238 |
Total Federal Home Loan Bank advances | $ 14,624 | $ 18,964 |
Weighted Average Interest Rate | ||
Within one year | 0.00% | 1.81% |
Over one year to three years | 0.22% | 0.17% |
Over three years to five years | 1.31% | 0.35% |
Over five years | 1.22% | 1.39% |
Total Federal Home Loan Bank advances | 1.14% | 1.40% |
Earnings Per Share ("EPS") (Det
Earnings Per Share ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||||||||||
Net income applicable to common shares | $ 22,738 | ||||||||||
Average number of common shares outstanding used to calculated basic earnings per common share (in shares) | 186,663,593 | ||||||||||
Less: Average unallocated ESOP shares (in shares) | (14,851,058) | ||||||||||
Average number of common shares outstanding used to calculated basic earnings per common share (in shares) | 171,812,535 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 171,812,535 | 0 | 0 |
Common stock equivalents (in shares) | 0 | ||||||||||
Average number of common shares outstanding used to calculate diluted earnings per common share (in shares) | 171,812,535 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 171,812,535 | ||
Earnings per common share | |||||||||||
Basic and diluted (in dollars per share) | $ 0.13 |
Income Taxes - Summary of Compa
Income Taxes - Summary of Company's Tax Provision and Applicable Tax Rates (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||||||||
Income tax provision (benefit) | $ (2,761) | $ 7,429 | $ 7,197 | $ 1,298 | $ 9,541 | $ 9,230 | $ 11,032 | $ 9,678 | $ 13,163 | $ 39,481 | $ 34,884 |
Effective income tax rates | 36.67% | 22.61% | 22.13% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Income Tax Examination [Line Items] | ||||||||||||
Income tax provision (benefit) | $ (2,761,000) | $ 7,429,000 | $ 7,197,000 | $ 1,298,000 | $ 9,541,000 | $ 9,230,000 | $ 11,032,000 | $ 9,678,000 | $ 13,163,000 | $ 39,481,000 | $ 34,884,000 | |
Effective income tax rates | 36.67% | 22.61% | 22.13% | |||||||||
Deferred tax asset valuation allowance | 12,000,000 | 0 | $ 12,000,000 | $ 0 | ||||||||
Issuance of stock for charitable contributions | [1] | 91,287,000 | 0 | $ 0 | ||||||||
Charitable cash contribution | 3,700,000 | |||||||||||
Total deferred tax assets | 13,229,000 | 28,207,000 | 13,229,000 | 28,207,000 | ||||||||
Net operating loss carryforwards | 0 | $ 0 | 0 | 0 | ||||||||
Tax credits and other tax benefits recognized | $ 5,962,000 | 5,033,000 | $ 2,891,000 | |||||||||
Federal pre-1988 reserve with no tax provision | $ 20,800,000 | 20,800,000 | ||||||||||
Federal | ||||||||||||
Income Tax Examination [Line Items] | ||||||||||||
Tax credits and other tax benefits recognized | 7,100,000 | 7,600,000 | ||||||||||
State | ||||||||||||
Income Tax Examination [Line Items] | ||||||||||||
Tax credits and other tax benefits recognized | $ 300,000 | $ 300,000 | ||||||||||
[1] | Represents a non-cash common stock donation of 7,470,326 shares at a fair value of $91.3 million to the Eastern Bank Charitable Foundation. The donation is included in charitable contributions as a non-interest expense in the Consolidated Income Statement for the year ended December 31, 2020. |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provisions (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current tax expense: | |||||||||||
Federal | $ 23,002 | $ 26,365 | $ 26,793 | ||||||||
State | 10,520 | 11,740 | 12,969 | ||||||||
Total current tax expense | 33,522 | 38,105 | 39,762 | ||||||||
Deferred tax expense (benefit): | |||||||||||
Federal | (13,736) | 782 | (1,360) | ||||||||
State | (6,623) | 594 | (3,518) | ||||||||
Total deferred tax (benefit) expense | (20,359) | 1,376 | (4,878) | ||||||||
Income tax provision (benefit) | $ (2,761) | $ 7,429 | $ 7,197 | $ 1,298 | $ 9,541 | $ 9,230 | $ 11,032 | $ 9,678 | $ 13,163 | $ 39,481 | $ 34,884 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||||||||||
Income tax expense at statutory rate | $ 7,539 | $ 36,662 | $ 33,098 | ||||||||
State income tax, net of federal tax benefit | 43 | 9,744 | 7,466 | ||||||||
Valuation allowance | 12,000 | 0 | 0 | ||||||||
Amortization of qualified low-income housing investments | 4,977 | 4,782 | 2,750 | ||||||||
Tax credits | (7,085) | (7,570) | (3,154) | ||||||||
Tax-exempt income | (4,091) | (3,923) | (4,269) | ||||||||
Other, net | (220) | (214) | (1,007) | ||||||||
Income tax provision (benefit) | $ (2,761) | $ 7,429 | $ 7,197 | $ 1,298 | $ 9,541 | $ 9,230 | $ 11,032 | $ 9,678 | $ 13,163 | $ 39,481 | $ 34,884 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||||||||||
Income tax expense at statutory rate | 21.00% | 21.00% | 21.00% | ||||||||
State income tax, net of federal tax benefit | 0.12% | 5.58% | 4.74% | ||||||||
Valuation allowance | 33.43% | 0.00% | 0.00% | ||||||||
Amortization of qualified low-income housing investments | 13.86% | 2.74% | 1.74% | ||||||||
Tax credits | (19.73%) | (4.34%) | (2.00%) | ||||||||
Tax-exempt income | (11.40%) | (2.25%) | (2.71%) | ||||||||
Other, net | (0.61%) | (0.12%) | (0.64%) | ||||||||
Actual income tax expense | 36.67% | 22.61% | 22.13% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Allowance for loan losses | $ 34,397 | $ 25,641 |
Leases | 24,098 | 0 |
Charitable contribution limitation carryover | 22,942 | 0 |
Pension and deferred compensation plans | 0 | 25,455 |
Accrued expenses | 5,047 | 5,854 |
Fixed assets | 4,183 | 3,515 |
Loan basis difference fair value adjustments | 461 | 1,949 |
PPP loans fee income | 5,969 | 0 |
Other | 967 | 1,516 |
Deferred tax assets | 98,064 | 63,930 |
Valuation allowance | (12,000) | 0 |
Total deferred tax assets | 86,064 | 63,930 |
Deferred tax liabilities: | ||
Amortization of intangibles | 13,585 | 13,400 |
Unrealized gain on available for sale securities | 13,005 | 6,241 |
Partnerships | 1,448 | 3,967 |
Cash flow hedges | 11,658 | 6,109 |
Trading securities | 5,110 | 3,316 |
Lease obligation | 23,048 | 0 |
Employee benefits | 1,613 | 0 |
Other | 3,368 | 2,690 |
Total deferred tax liabilities | 72,835 | 35,723 |
Net deferred income tax assets | $ 13,229 | $ 28,207 |
Low Income Housing Tax Credit_3
Low Income Housing Tax Credits and Other Tax Credit Investments - Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments In Affordable Housing Projects [Line Items] | |||
Tax credit investments | $ 59.8 | $ 46.1 | |
Renewable Energy Program | |||
Investments In Affordable Housing Projects [Line Items] | |||
Equity investments | $ 1.2 | 1.2 | 4.1 |
Outstanding investment commitments | 1.7 | 1.7 | 0 |
Primary Beneficiary | |||
Investments In Affordable Housing Projects [Line Items] | |||
Equity investments | 0 | $ 0 | $ 4.2 |
Low income housing tax credit and other tax credit investments | |||
Investments In Affordable Housing Projects [Line Items] | |||
Tax credit period of benefits | 15 years | ||
Operating loss tax benefits period | 15 years | ||
Tax credit write off | $ 7.6 |
Low Income Housing Tax Credit_4
Low Income Housing Tax Credits and Other Tax Credit Investments - Summary of the Company's Investments in Low Income Housing Projects Accounted for Using the Proportional Amortization Method (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2019 | |
Investments in Affordable Housing Projects [Abstract] | ||||
Investments in qualified affordable housing partnerships, net | $ 58,504 | $ 37,665 | ||
Commitments to fund qualified affordable housing projects included in recorded investment noted above | 31,487 | $ 18,042 | ||
Tax credits and other tax benefits recognized | $ 5,962 | 5,033 | $ 2,891 | |
Amortization expense included in income tax expense | $ 4,782 | $ 4,977 | $ 2,750 |
Minimum Regulatory Capital Re_3
Minimum Regulatory Capital Requirements (Details) $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Total regulatory capital (to risk-weighted assets) | ||
Total regulatory capital (to risk-weighted assets), Actual, Amount | $ 3,135,445 | $ 1,365,391 |
Total regulatory capital (to risk-weighted assets), Actual, Ratio | 29.61 | 13.56 |
Total regulatory capital (to risk-weighted assets), For Capital Adequacy, Amount | $ 847,069 | $ 805,394 |
Total regulatory capital (to-risk weighted assets), For Capital Adequacy, Ratio (less than) | 0.08 | 0.08 |
Total regulatory capital (to risk-weighted assets), To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 1,058,836 | $ 1,006,742 |
Total regulatory capital (to-risk weighted assets), To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio (less than) | 0.10 | 0.10 |
Banking Regulation, Common Equity Tier One Risk-Based Capital [Abstract] | ||
Common Equity Tier I capital (to risk-weighted assets), Actual, Amount | $ 3,013,079 | $ 1,274,174 |
Common Equity Tier I capital (to risk-weighted assets), Actual, Ratio | 28.46 | 12.66 |
Common Equity Tier I capital (to risk-weighted assets), For Capital Adequacy, Amount | $ 476,476 | $ 453,034 |
Common Equity Tier I capital (to risk-weighted assets), For Capital Adequacy, Ratio | 4.5 | 4.5 |
Common Equity Tier I capital (to risk-weighted assets), To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 688,243 | $ 654,382 |
Common Equity Tier I capital (to risk-weighted assets), To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.5 | 6.5 |
Tier 1 capital (to risk-weighted assets) | ||
Tier 1 capital (to risk-weighted assets), Actual, Amount | $ 3,013,079 | $ 1,274,174 |
Tier 1 capital (to risk-weighted assets), Actual, Ratio | 28.46 | 12.66 |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy, Amount | $ 635,302 | $ 604,045 |
Tier 1 capital (to risk-weighted assets), For Capital Adequacy, Ratio | 6 | 6 |
Tier 1 capital (to risk-weighted assets), To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 847,069 | $ 805,394 |
Tier 1 capital (to risk-weighted assets), To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 8 | 8 |
Tier I capital (to average assets) | ||
Tier I capital (to average assets), Actual, Amount | $ 3,013,079 | $ 1,274,174 |
Tier I capital (to average assets), Actual, Ratio | 19.53 | 11.47 |
Tier I capital (to average assets), For Capital Adequacy, Amount | $ 617,049 | $ 444,279 |
Tier I capital (to average assets), For Capital Adequacy, Ratio | 4 | 4 |
Tier I capital (to average assets), To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 771,312 | $ 555,348 |
Tier I capital (to average assets), To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 5 | 5 |
Employee Benefits - Narrative (
Employee Benefits - Narrative (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 01, 2020 | Oct. 31, 2020 | Dec. 31, 2017 | |
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||
Discretionary contributions for the Defined Contribution Plan | $ 4,400 | $ 4,200 | $ 3,900 | |||
Amount borrowed under ESOP | $ 149,400 | |||||
Shares purchased under ESOP (in shares) | 14,940,652 | |||||
ESOP compensation expense | $ 2,400 | |||||
ESOP compensation expense related to releases and allocation | 900 | |||||
ESOP compensation expense related to accrued loan payments | 1,500 | |||||
ESOP upfront principal payment | $ 1,000 | |||||
Shares committed to be allocated (in shares) | 104,464 | |||||
Defined contribution liability | $ 27,600 | 24,500 | ||||
Deferred compensation plans, liabilities | $ 28,900 | 21,000 | ||||
Annual amount from 2022 through 2049 | ||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||
Shares committed to be allocated (in shares) | 501,429 | |||||
Annual amount for 2050 | ||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||
Shares committed to be allocated (in shares) | 335,533 | |||||
Asset Management Arrangement | ||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||
Benefit obligation | $ 449,643 | 378,879 | 305,154 | |||
Equities | ||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||
Rabbi trust investments | $ 78,700 | 58,500 | ||||
Fixed income | Minimum | ||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||
Plan asset, target allocation percentages | 24.00% | |||||
Fixed income | Maximum | ||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||
Plan asset, target allocation percentages | 38.00% | |||||
Hedge Funds | Minimum | ||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||
Plan asset, target allocation percentages | 9.00% | |||||
Hedge Funds | Maximum | ||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||
Plan asset, target allocation percentages | 21.00% | |||||
Defined Benefit Plan, Equity Securities | Minimum | ||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||
Plan asset, target allocation percentages | 47.00% | |||||
Defined Benefit Plan, Equity Securities | Maximum | ||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||
Plan asset, target allocation percentages | 61.00% | |||||
Pension Plan | ||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||
Contribution credits rate | 3.50% | |||||
Discretionary employer contribution to the Defined Benefit Plan | $ 32,500 | |||||
Benefit obligation | 361,147 | 396,769 | 302,317 | $ 328,409 | ||
Supplemental Employee Retirement Plan | Defined Contribution Supplemental Executive Retirement Plan | ||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||
Defined contribution expense | 900 | 1,300 | $ 1,400 | |||
Supplemental Employee Retirement Plan | Primary Beneficiary | Defined Contribution Supplemental Executive Retirement Plan | ||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||
Rabbi trust investments | 28,134 | 24,564 | ||||
Supplemental Employee Retirement Plan | Primary Beneficiary | Defined Contribution Supplemental Executive Retirement Plan | Equities | ||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||
Rabbi trust investments | 27,894 | 20,367 | ||||
Qualified Plan | Pension Plan | ||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||
Contribution credits rate | 3.50% | |||||
Nonqualified Plan | Primary Beneficiary | ||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||
Rabbi trust investments | 91,683 | 78,012 | ||||
Nonqualified Plan | Pension Plan | ||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||
Contribution credits rate | 5.00% | |||||
Nonqualified Plan | Supplemental Employee Retirement Plan | Primary Beneficiary | Defined Contribution Supplemental Executive Retirement Plan | ||||||
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||||||
Rabbi trust investments | $ 28,134 | $ 24,564 |
Employee Benefits - Obligations
Employee Benefits - Obligations and Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in benefit obligation: | |||
Service cost | $ 25,970 | $ 18,926 | $ 23,258 |
Interest cost | 9,657 | 10,996 | 11,170 |
Amounts recognized in accumulated other comprehensive income (“AOCI”), net of tax: | |||
Unrecognized past service credit (cost) | 1,388 | (33) | (32) |
Unrecognized net loss | (7,754) | (5,206) | (5,479) |
Pension Plan | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of the year | 396,769 | 302,317 | 328,409 |
Service cost | 25,970 | 18,926 | 23,256 |
Interest cost | 9,657 | 10,996 | 11,170 |
Amendments | (133,439) | 0 | 0 |
Actuarial loss (gain) | 78,095 | 74,828 | (46,932) |
Benefits paid | (15,905) | (10,298) | (13,586) |
Benefit obligation at end of the year | 361,147 | 396,769 | 302,317 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 378,879 | 305,154 | 335,369 |
Actual return (loss) on plan assets | 48,895 | 60,723 | (18,918) |
Employer contribution | 37,773 | 23,300 | 2,289 |
Benefits paid | (15,904) | (10,298) | (13,586) |
Fair value of plan assets at end of year | 449,643 | 378,879 | 305,154 |
Overfunded (underfunded) status | 88,496 | (17,890) | 2,837 |
Reconciliation of funding status: | |||
Past service credit (cost) | 131,482 | (25) | (69) |
Unrecognized net loss | (161,045) | (113,022) | (82,542) |
Prepaid benefit cost | 118,059 | 95,157 | 85,448 |
Accumulated benefit obligation | 361,147 | 290,429 | 223,865 |
Amounts recognized in accumulated other comprehensive income (“AOCI”), net of tax: | |||
Unrecognized past service credit (cost) | 94,522 | (18) | (50) |
Unrecognized net loss | (115,775) | (81,251) | (59,339) |
Net amount | (21,253) | (81,269) | (59,389) |
Amounts in accumulated other comprehensive income expected to be recognized in net periodic benefit cost over the next fiscal year: | |||
Unrecognized past service (credit) cost | (8,469) | 18 | 32 |
Unrecognized net loss | 10,171 | 6,790 | 5,207 |
Net amount | $ 1,702 | $ 6,808 | $ 5,239 |
Employee Benefits - Actuarial A
Employee Benefits - Actuarial Assumptions (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.26% | 3.16% |
Rate of increase in compensation levels | 5.25% | 5.25% |
Interest rate credit for determining projected cash balance | 3.50% | |
Pension Plan | Benefit Equalization Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 1.77% | 3.15% |
Rate of increase in compensation levels | 5.25% | 5.25% |
Interest rate credit for determining projected cash balance | 3.50% | |
Pension Plan | Outside Directors’ Retainer Continuance Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 1.81% | 2.86% |
Rate of increase in compensation levels | 0.00% | 3.00% |
Supplemental Employee Retirement Plan | Defined Benefit Supplemental Executive Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 1.63% | 2.72% |
Rate of increase in compensation levels | 0.00% | 0.00% |
Employee Benefits - Assumptions
Employee Benefits - Assumptions Used to Determine Net Periodic Benefit (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - benefit cost | 3.16% | 4.25% | 3.50% |
Rate of compensation increase | 5.25% | 5.25% | 5.25% |
Expected rate of return on plan assets | 7.50% | 7.50% | 7.75% |
Pension Plan | Benefit Equalization Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - benefit cost | 3.15% | 4.25% | 3.50% |
Rate of compensation increase | 5.25% | 5.25% | 5.25% |
Expected rate of return on plan assets | 0.00% | 0.00% | 0.00% |
Pension Plan | Outside Directors’ Retainer Continuance Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - benefit cost | 2.86% | 4.25% | 3.50% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Expected rate of return on plan assets | 0.00% | 0.00% | 0.00% |
Supplemental Employee Retirement Plan | Defined Benefit Supplemental Executive Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate - benefit cost | 2.72% | 4.25% | 3.50% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Expected rate of return on plan assets | 0.00% | 0.00% | 0.00% |
Employee Benefits - Reconciliat
Employee Benefits - Reconciliation of Interest SBERA Common Collective (Details) - Asset Management Arrangement - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Change in benefit obligation: | ||
Benefit obligation at beginning of the year | $ 378,879 | $ 305,154 |
Net realized and unrealized gains and (losses) | 48,895 | 60,723 |
Contributions | 32,515 | 20,000 |
Benefits paid | (10,646) | (6,998) |
Benefit obligation at end of the year | $ 449,643 | $ 378,879 |
Employee Benefits - Components
Employee Benefits - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Components of net periodic benefit cost: | |||
Service cost | $ 25,970 | $ 18,926 | $ 23,258 |
Interest cost | 9,657 | 10,996 | 11,170 |
Expected return on plan assets | (29,610) | (23,617) | (25,335) |
Past service (credit) cost | (1,931) | 44 | 44 |
Recognized net actuarial loss | 10,787 | 7,242 | 7,621 |
Net periodic benefit cost | $ 14,873 | $ 13,591 | $ 16,758 |
Employee Benefits - Benefits Ex
Employee Benefits - Benefits Expected to be Paid (Details) - Pension Plan $ in Thousands | Dec. 31, 2020USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | $ 36,510 |
2022 | 29,553 |
2023 | 32,753 |
2024 | 31,131 |
2025 | 34,029 |
In aggregate for 2026-2030 | $ 176,164 |
Employee Benefits - Employee St
Employee Benefits - Employee Stock Ownership Plan (Details) $ in Thousands | Dec. 31, 2020USD ($)shares |
Retirement Benefits [Abstract] | |
Allocated shares (in shares) | 63,690 |
Shares committed to be allocated (in shares) | 104,464 |
Unallocated shares (in shares) | 14,772,498 |
Total shares (in shares) | 14,940,652 |
Fair value of unallocated shares | $ | $ 240,939 |
Employee Benefits- Assets Held
Employee Benefits- Assets Held in Rabbi Trust (Details) - Primary Beneficiary - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred compensation plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rabbi trust investments | $ 29,484 | $ 23,936 |
Nonqualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rabbi trust investments | 91,683 | 78,012 |
Nonqualified Plan | Deferred compensation plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rabbi trust investments | 29,484 | 23,936 |
Supplemental Employee Retirement Plan | Defined Benefit Supplemental Executive Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rabbi trust investments | 22,616 | 20,003 |
Supplemental Employee Retirement Plan | Defined Contribution Supplemental Executive Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rabbi trust investments | 28,134 | 24,564 |
Supplemental Employee Retirement Plan | Nonqualified Plan | Defined Benefit Supplemental Executive Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rabbi trust investments | 22,616 | 20,003 |
Supplemental Employee Retirement Plan | Nonqualified Plan | Defined Contribution Supplemental Executive Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rabbi trust investments | 28,134 | 24,564 |
Pension Plan | Benefit Equalization Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rabbi trust investments | 7,198 | 5,934 |
Pension Plan | Outside Directors’ Retainer Continuance Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rabbi trust investments | 4,251 | 3,575 |
Pension Plan | Nonqualified Plan | Benefit Equalization Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rabbi trust investments | 7,198 | 5,934 |
Pension Plan | Nonqualified Plan | Outside Directors’ Retainer Continuance Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rabbi trust investments | $ 4,251 | $ 3,575 |
Employee Benefits - Asset Held
Employee Benefits - Asset Held In Rabbi Trust By Plan Type (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred compensation plans | Primary Beneficiary | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | $ 25,117 | $ 21,453 |
Unrealized Gain/(Loss) | 4,367 | 2,483 |
Fair Value | 29,484 | 23,936 |
Cash and cash equivalents | Deferred compensation plans | Primary Beneficiary | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | 3,159 | 2,738 |
Fair Value | 3,159 | 2,738 |
Equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value | 78,700 | 58,500 |
Equities | Deferred compensation plans | Primary Beneficiary | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | 21,958 | 14,135 |
Unrealized Gain/(Loss) | 4,367 | 2,385 |
Fair Value | 26,325 | 16,520 |
Fixed income | Deferred compensation plans | Primary Beneficiary | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | 0 | 4,580 |
Unrealized Gain/(Loss) | 0 | 98 |
Fair Value | 0 | 4,678 |
Supplemental Employee Retirement Plan | Defined Benefit Supplemental Executive Retirement Plan | Primary Beneficiary | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | 16,884 | 15,982 |
Unrealized Gain/(Loss) | 5,732 | 4,021 |
Fair Value | 22,616 | 20,003 |
Supplemental Employee Retirement Plan | Defined Benefit Supplemental Executive Retirement Plan | Cash and cash equivalents | Primary Beneficiary | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | 1,208 | 821 |
Fair Value | 1,208 | 821 |
Supplemental Employee Retirement Plan | Defined Benefit Supplemental Executive Retirement Plan | Equities | Primary Beneficiary | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | 10,822 | 10,711 |
Unrealized Gain/(Loss) | 5,508 | 3,909 |
Fair Value | 16,330 | 14,620 |
Supplemental Employee Retirement Plan | Defined Benefit Supplemental Executive Retirement Plan | Fixed income | Primary Beneficiary | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | 4,854 | 4,450 |
Unrealized Gain/(Loss) | 224 | 112 |
Fair Value | 5,078 | 4,562 |
Supplemental Employee Retirement Plan | Defined Contribution Supplemental Executive Retirement Plan | Primary Beneficiary | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | 21,206 | 19,850 |
Unrealized Gain/(Loss) | 6,928 | 4,714 |
Fair Value | 28,134 | 24,564 |
Supplemental Employee Retirement Plan | Defined Contribution Supplemental Executive Retirement Plan | Cash and cash equivalents | Primary Beneficiary | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | 240 | 1,540 |
Fair Value | 240 | 1,540 |
Supplemental Employee Retirement Plan | Defined Contribution Supplemental Executive Retirement Plan | Equities | Primary Beneficiary | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | 20,966 | 15,691 |
Unrealized Gain/(Loss) | 6,928 | 4,676 |
Fair Value | 27,894 | 20,367 |
Supplemental Employee Retirement Plan | Defined Contribution Supplemental Executive Retirement Plan | Fixed income | Primary Beneficiary | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | 0 | 2,619 |
Unrealized Gain/(Loss) | 0 | 38 |
Fair Value | 0 | 2,657 |
Pension Plan | Benefit Equalization Plan | Primary Beneficiary | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | 5,389 | 4,678 |
Unrealized Gain/(Loss) | 1,809 | 1,256 |
Fair Value | 7,198 | 5,934 |
Pension Plan | Benefit Equalization Plan | Cash and cash equivalents | Primary Beneficiary | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | 320 | 158 |
Fair Value | 320 | 158 |
Pension Plan | Benefit Equalization Plan | Equities | Primary Beneficiary | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | 3,504 | 3,276 |
Unrealized Gain/(Loss) | 1,730 | 1,224 |
Fair Value | 5,234 | 4,500 |
Pension Plan | Benefit Equalization Plan | Fixed income | Primary Beneficiary | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | 1,565 | 1,244 |
Unrealized Gain/(Loss) | 79 | 32 |
Fair Value | 1,644 | 1,276 |
Pension Plan | Outside Directors’ Retainer Continuance Plan | Primary Beneficiary | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | 3,237 | 2,889 |
Unrealized Gain/(Loss) | 1,014 | 686 |
Fair Value | 4,251 | 3,575 |
Pension Plan | Outside Directors’ Retainer Continuance Plan | Cash and cash equivalents | Primary Beneficiary | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | 230 | 171 |
Fair Value | 230 | 171 |
Pension Plan | Outside Directors’ Retainer Continuance Plan | Equities | Primary Beneficiary | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | 1,985 | 1,841 |
Unrealized Gain/(Loss) | 959 | 665 |
Fair Value | 2,944 | 2,506 |
Pension Plan | Outside Directors’ Retainer Continuance Plan | Fixed income | Primary Beneficiary | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Book Value | 1,022 | 877 |
Unrealized Gain/(Loss) | 55 | 21 |
Fair Value | $ 1,077 | $ 898 |
Employee Benefits - Summary of
Employee Benefits - Summary of Gains and Losses Related to Equity Securities (Details) - Primary Beneficiary - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan, Plan Assets, Category [Line Items] | ||
Net gains recognized on equity securities | $ 11,756 | $ 11,283 |
Less: net gains realized on sale of equity securities | (5,122) | (1,774) |
Unrealized gains on equity securities held at end of period | $ 6,634 | $ 9,509 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Financial Instruments as of the Dates Indicated (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments to extend credit | ||
Disclosure Of Financial Instruments Indicated [Line Items] | ||
Contractual obligation | $ 3,818,952 | $ 3,606,182 |
Standby letters of credit | ||
Disclosure Of Financial Instruments Indicated [Line Items] | ||
Contractual obligation | 60,221 | 60,124 |
Forward commitments to sell loans | ||
Disclosure Of Financial Instruments Indicated [Line Items] | ||
Contractual obligation | $ 41,160 | $ 21,357 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Cash and Cash Equivalents | |
Disclosure of Commitments and Contingencies [Line Items] | |
Other contingencies | $ 3.7 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Cash Flow Hedges for Accounting Purposes (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Derivative [Line Items] | |
Notional Amount | $ 2,120,000 |
Fair Value | (321) |
Interest rate swaps on loans | |
Derivative [Line Items] | |
Notional Amount | 2,120,000 |
Fair Value | (321) |
Interest receivable | $ 400 |
Weighted Average | Interest rate swaps on loans | |
Derivative [Line Items] | |
Weighted Average Maturity | 2 years 1 month 28 days |
Weighted Average Rate, Current Rate Paid | 1.74% |
Weighted Average Rate, Receive Fixed Swap Rate | 2.11% |
Derivative Financial Instrume_4
Derivative Financial Instruments - Pre-tax Impact of Terminated Cash Flow Hedges on AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Before Tax [Roll Forward] | ||
Beginning balance | $ 1,600,153 | $ 1,433,141 |
Unrealized gains on terminated hedges arising during the period | 57,362 | 0 |
Reclassification adjustments for amortization of unrealized (gains) into net interest income | (15,889) | 0 |
Ending balance | 3,428,052 | 1,600,153 |
Accumulated Gain (Loss), Net, Terminated Cash Flow Hedge, Parent | ||
AOCI Attributable to Parent, Before Tax [Roll Forward] | ||
Beginning balance | 0 | 0 |
Ending balance | $ 41,473 | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Narrative (Detail) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Credit exposure to settled variation margin in excess of customer related interest rate swap | $ 0.1 | $ 1.5 |
Non Cleared Derivative Transactions | Customer Related Interest Rate Swap Derivatives | ||
Derivative [Line Items] | ||
Fair value of interest rate swap liabilities that are net in a net liability position | 42.6 | 14.6 |
Cash and Cash Equivalents | Non Cleared Derivative Transactions | Customer Related Interest Rate Swap Derivatives | ||
Derivative [Line Items] | ||
Additional collateral posted | 49.2 | |
Available-for-sale Securities | Non Cleared Derivative Transactions | Customer Related Interest Rate Swap Derivatives | ||
Derivative [Line Items] | ||
Additional collateral posted | 22.2 | |
Restricted Assets | Cash and Cash Equivalents | Cleared Derivative Transaction | ||
Derivative [Line Items] | ||
Additional collateral posted | 60.4 | |
Restricted Assets | Available-for-sale Securities | Cleared Derivative Transaction | ||
Derivative [Line Items] | ||
Additional collateral posted | $ 27.6 | |
Interest Income | Termination Of Cash Flow Hedges | ||
Derivative [Line Items] | ||
Interest rate swap cash flow hedges amount expected to reclassified from other comprehensive income to income statement in the next twelve months | $ 31.2 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Customer-Related Derivative Positions (Detail) - Not Designated as Hedging Instrument $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Interest rate swaps | ||
Disclosure Of Customer Related Derivatives Not Designated As Hedging [Line Items] | ||
Number of Positions | 576 | 603 |
Total Notional | $ 3,652,385 | $ 3,749,474 |
Risk participation agreements | ||
Disclosure Of Customer Related Derivatives Not Designated As Hedging [Line Items] | ||
Number of Positions | 70 | 67 |
Total Notional | $ 287,732 | $ 299,576 |
Matched commercial customer book | ||
Disclosure Of Customer Related Derivatives Not Designated As Hedging [Line Items] | ||
Number of Positions | 40 | 62 |
Total Notional | $ 4,242 | $ 29,990 |
Foreign currency loan | ||
Disclosure Of Customer Related Derivatives Not Designated As Hedging [Line Items] | ||
Number of Positions | 3 | 23 |
Total Notional | $ 10,798 | $ 7,310 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Classification On The Balance Sheet For The Periods Indicated (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure Of Fair Value Of Derivative Instruments And Their Balance Sheet Classification [Line Items] | ||
Derivative designated as hedging instrument, Interest rate swaps, Other liabilities | $ 321 | |
Foreign currency exchange contracts — foreign currency loan | ||
Disclosure Of Fair Value Of Derivative Instruments And Their Balance Sheet Classification [Line Items] | ||
Total, Asset Derivatives | $ 9 | |
Asset Derivatives | ||
Disclosure Of Fair Value Of Derivative Instruments And Their Balance Sheet Classification [Line Items] | ||
Derivative instruments designated as hedging instruments, Interest rate swaps, Other assets | 0 | 0 |
Derivatives not designated as hedging instruments, Interest rate swaps, Other assets | 141,822 | 64,463 |
Derivatives not designated as hedging instruments, Other assets | 142,643 | 65,414 |
Total, Asset Derivatives | 142,643 | 65,414 |
Asset Derivatives | Risk participation agreements | ||
Disclosure Of Fair Value Of Derivative Instruments And Their Balance Sheet Classification [Line Items] | ||
Derivatives not designated as hedging instruments, Other assets | 722 | 482 |
Asset Derivatives | Foreign currency exchange contracts — matched customer book | ||
Disclosure Of Fair Value Of Derivative Instruments And Their Balance Sheet Classification [Line Items] | ||
Derivatives not designated as hedging instruments, Other assets | 90 | 469 |
Asset Derivatives | Foreign currency exchange contracts — foreign currency loan | ||
Disclosure Of Fair Value Of Derivative Instruments And Their Balance Sheet Classification [Line Items] | ||
Derivatives not designated as hedging instruments, Other assets | 9 | 0 |
Liability Derivatives | ||
Disclosure Of Fair Value Of Derivative Instruments And Their Balance Sheet Classification [Line Items] | ||
Derivative designated as hedging instrument, Interest rate swaps, Other liabilities | 0 | 321 |
Derivative not designated as hedging instruments, Interest rate swaps, Other liabilities | 42,600 | 18,057 |
Derivatives not designated as hedging instruments, Other liabilities | 43,976 | 19,294 |
Total, Liability Derivatives | 43,976 | 19,615 |
Liability Derivatives | Risk participation agreements | ||
Disclosure Of Fair Value Of Derivative Instruments And Their Balance Sheet Classification [Line Items] | ||
Derivatives not designated as hedging instruments, Other liabilities | 1,230 | 606 |
Liability Derivatives | Foreign currency exchange contracts — matched customer book | ||
Disclosure Of Fair Value Of Derivative Instruments And Their Balance Sheet Classification [Line Items] | ||
Derivatives not designated as hedging instruments, Other liabilities | 77 | 428 |
Liability Derivatives | Foreign currency exchange contracts — foreign currency loan | ||
Disclosure Of Fair Value Of Derivative Instruments And Their Balance Sheet Classification [Line Items] | ||
Derivatives not designated as hedging instruments, Other liabilities | $ 69 | $ 203 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Company's Derivative Financial Instruments Included in OCI (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain in OCI on derivatives | $ 46,871 | $ 20,275 | $ 46,871 | $ 20,275 | $ 5,354 |
Gain reclassified from OCI into interest income (effective portion) | 27,131 | $ 2,698 | 1,198 | ||
Gain recognized in income on derivatives (ineffective portion and amount excluded from effectiveness test) | 0 | 0 | 0 | ||
Gain (loss) recognized in other income for foreign currency exchange contracts: | (4,081) | (3,166) | (549) | ||
Interest Income | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain reclassified from OCI into interest income (effective portion) | 27,131 | 2,698 | $ 1,198 | ||
Interest Income | Net Investment Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain recognized in income on derivatives (ineffective portion and amount excluded from effectiveness test) | 0 | 0 | 0 | ||
Interest Income | Interest rate swaps | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) recognized in interest rate swap income | (3,812) | (2,833) | (550) | ||
Interest Income | Risk participation agreements | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (Loss) recognized in interest rate swap income | (384) | (83) | (35) | ||
Other Income | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain recognized in income on derivatives (ineffective portion and amount excluded from effectiveness test) | 0 | 0 | 0 | ||
Other Income | Foreign currency exchange contracts — matched customer book | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) recognized in other income for foreign currency exchange contracts: | (28) | (47) | 36 | ||
Other Income | Foreign currency exchange contracts — foreign currency loan | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) recognized in other income for foreign currency exchange contracts: | $ 143 | $ (203) | $ 0 |
Balance Sheet Offsetting - Disc
Balance Sheet Offsetting - Disclosure Detail Of Balance Sheet Offsetting Of Financial Assets And Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Customer-related positions | ||
Derivative Assets | ||
Gross Amounts Recognized | $ 142,643 | $ 65,414 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 142,643 | 65,414 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 48 | 1,441 |
Derivative Asset Collateral Pledged Received Net | (1) | (462) |
Net Amount | 142,594 | 63,511 |
Derivative Liabilities | ||
Gross Amounts Recognized | 43,976 | 19,615 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 43,976 | 19,615 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 48 | 1,762 |
Gross Amounts Not Offset in the Statement of Financial Position, Collateral Pledged (Received) | 42,552 | 16,623 |
Net Amount | 1,376 | 1,230 |
Interest rate swaps | ||
Derivative Assets | ||
Gross Amounts Recognized | 0 | 0 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | 0 |
Derivative Asset Collateral Pledged Received Net | 0 | 0 |
Net Amount | 0 | 0 |
Derivative Liabilities | ||
Gross Amounts Recognized | 0 | 321 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 0 | 321 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | 321 |
Gross Amounts Not Offset in the Statement of Financial Position, Collateral Pledged (Received) | 0 | 0 |
Net Amount | 0 | 0 |
Interest rate swaps | Customer-related positions | ||
Derivative Assets | ||
Gross Amounts Recognized | 141,822 | 64,463 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 141,822 | 64,463 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 48 | 1,434 |
Derivative Asset Collateral Pledged Received Net | 0 | 0 |
Net Amount | 141,774 | 63,029 |
Derivative Liabilities | ||
Gross Amounts Recognized | 42,600 | 18,057 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 42,600 | 18,057 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 48 | 1,434 |
Gross Amounts Not Offset in the Statement of Financial Position, Collateral Pledged (Received) | 42,552 | 16,623 |
Net Amount | 0 | 0 |
Risk participation agreements | Customer-related positions | ||
Derivative Assets | ||
Gross Amounts Recognized | 722 | 482 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 722 | 482 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | 0 |
Derivative Asset Collateral Pledged Received Net | 0 | 0 |
Net Amount | 722 | 482 |
Derivative Liabilities | ||
Gross Amounts Recognized | 1,230 | 606 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 1,230 | 606 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Position, Collateral Pledged (Received) | 0 | 0 |
Net Amount | 1,230 | 606 |
Foreign currency exchange contracts — matched customer book | Customer-related positions | ||
Derivative Assets | ||
Gross Amounts Recognized | 90 | 469 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 90 | 469 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | 7 |
Derivative Asset Collateral Pledged Received Net | (1) | (462) |
Net Amount | 89 | 0 |
Derivative Liabilities | ||
Gross Amounts Recognized | 77 | 428 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 77 | 428 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | 7 |
Gross Amounts Not Offset in the Statement of Financial Position, Collateral Pledged (Received) | 0 | 0 |
Net Amount | 77 | 421 |
Foreign currency exchange contracts — foreign currency loan | ||
Derivative Assets | ||
Gross Amounts Recognized | 9 | |
Gross Amounts Offset in the Statement of Financial Position | 0 | |
Net Amounts Presented in the Statement of Financial Position | 9 | |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | |
Derivative Asset Collateral Pledged Received Net | 0 | |
Net Amount | 9 | |
Foreign currency exchange contracts — foreign currency loan | Customer-related positions | ||
Derivative Liabilities | ||
Gross Amounts Recognized | 69 | 203 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts Presented in the Statement of Financial Position | 69 | 203 |
Gross Amounts Not Offset in the Statement of Financial Position, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Statement of Financial Position, Collateral Pledged (Received) | 0 | 0 |
Net Amount | $ 69 | $ 203 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Narrative (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Transfer from level one to level two fair value assets | $ 0 | $ 0 | |
Transfer from level two to level one fair value assets | 0 | 0 | |
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount | 0 | 0 | |
Transfer from level one to level three fair value assets | $ 0 | ||
Transfer from level three to level one fair value assets | 0 | ||
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3 | 0 | $ 0 | |
Minimum | Other Borrowed Funds | Valuation Technique, Discounted Cash Flow | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Other borrowed funds term | 90 days | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Transfer from level one to level three fair value assets | $ 0 | ||
Transfer from level three to level one fair value assets | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3 | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual Funds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Investment in mutual funds | 53,900,000 | $ 16,200,000 | |
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Transfer from level one to level three fair value assets | 0 | ||
Transfer from level three to level one fair value assets | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3 | $ 0 | $ 0 | |
Carrying amount | Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Financial instruments original maturity | 90 days | ||
Carrying amount | Maximum | Other Borrowed Funds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Other borrowed funds term | 90 days |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Summary Of The Balances Of Assets And Liabilities Measured At Fair Value On A Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Municipal bonds | $ 0 | $ 961 |
Available for sale | 3,183,861 | 1,508,236 |
Liabilities | ||
Cash flow hedges – interest rate positions | 321 | |
Government-sponsored residential mortgage-backed securities | ||
Assets | ||
Available for sale | 2,148,800 | 1,167,968 |
Government-sponsored commercial mortgage-backed securities | ||
Assets | ||
Available for sale | 17,081 | |
U.S. Agency bonds | ||
Assets | ||
Available for sale | 666,709 | |
U.S. Treasury securities | ||
Assets | ||
Available for sale | 70,369 | 50,420 |
Qualified zone academy bond | ||
Assets | ||
Available for sale | 6,310 | |
Fair Value, Recurring | ||
Assets | ||
Rabbi trust investments | 91,683 | 78,012 |
Loans held for sale | 1,140 | 26 |
Customer-related positions | 141,822 | 64,463 |
Risk participation agreements | 722 | 482 |
Matched customer book | 90 | 469 |
Foreign currency loan | 9 | |
Total | 3,419,327 | 1,652,649 |
Liabilities | ||
Cash flow hedges – interest rate positions | 321 | |
Customer-related positions | 42,600 | 18,057 |
Risk participation agreements | 1,230 | 606 |
Matched customer book | 77 | 428 |
Foreign currency loan | 69 | 203 |
Total | 43,976 | 19,615 |
Fair Value, Recurring | State and municipal bonds and obligations | ||
Assets | ||
Municipal bonds | 961 | |
Fair Value, Recurring | Government-sponsored residential mortgage-backed securities | ||
Assets | ||
Available for sale | 2,148,800 | 1,167,968 |
Fair Value, Recurring | Government-sponsored commercial mortgage-backed securities | ||
Assets | ||
Available for sale | 17,081 | |
Fair Value, Recurring | U.S. Agency bonds | ||
Assets | ||
Available for sale | 666,709 | |
Fair Value, Recurring | U.S. Treasury securities | ||
Assets | ||
Available for sale | 70,369 | 50,420 |
Fair Value, Recurring | State and municipal bonds and obligations | ||
Assets | ||
Available for sale | 283,538 | |
Fair Value, Recurring | State and municipal bonds and obligations | State and municipal bonds and obligations | ||
Assets | ||
Available for sale | 280,902 | |
Fair Value, Recurring | Qualified zone academy bond | ||
Assets | ||
Available for sale | 6,310 | |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Rabbi trust investments | 83,884 | 63,945 |
Loans held for sale | 0 | 0 |
Customer-related positions | 0 | 0 |
Risk participation agreements | 0 | 0 |
Matched customer book | 0 | 0 |
Foreign currency loan | 0 | |
Total | 154,253 | 114,365 |
Liabilities | ||
Cash flow hedges – interest rate positions | 0 | |
Customer-related positions | 0 | 0 |
Risk participation agreements | 0 | 0 |
Matched customer book | 0 | 0 |
Foreign currency loan | 0 | 0 |
Total | 0 | 0 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | State and municipal bonds and obligations | ||
Assets | ||
Municipal bonds | 0 | |
Available for sale | 0 | |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government-sponsored residential mortgage-backed securities | ||
Assets | ||
Available for sale | 0 | 0 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Government-sponsored commercial mortgage-backed securities | ||
Assets | ||
Available for sale | 0 | |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Agency bonds | ||
Assets | ||
Available for sale | 0 | |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury securities | ||
Assets | ||
Available for sale | 70,369 | 50,420 |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | State and municipal bonds and obligations | State and municipal bonds and obligations | ||
Assets | ||
Available for sale | 0 | |
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Qualified zone academy bond | ||
Assets | ||
Available for sale | 0 | |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Rabbi trust investments | 7,799 | 14,067 |
Loans held for sale | 1,140 | 26 |
Customer-related positions | 141,822 | 64,463 |
Risk participation agreements | 722 | 482 |
Matched customer book | 90 | 469 |
Foreign currency loan | 9 | |
Total | 3,265,074 | 1,531,974 |
Liabilities | ||
Cash flow hedges – interest rate positions | 321 | |
Customer-related positions | 42,600 | 18,057 |
Risk participation agreements | 1,230 | 606 |
Matched customer book | 77 | 428 |
Foreign currency loan | 69 | 203 |
Total | 43,976 | 19,615 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | State and municipal bonds and obligations | ||
Assets | ||
Municipal bonds | 961 | |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Government-sponsored residential mortgage-backed securities | ||
Assets | ||
Available for sale | 2,148,800 | 1,167,968 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Government-sponsored commercial mortgage-backed securities | ||
Assets | ||
Available for sale | 17,081 | |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Agency bonds | ||
Assets | ||
Available for sale | 666,709 | |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Treasury securities | ||
Assets | ||
Available for sale | 0 | 0 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | State and municipal bonds and obligations | State and municipal bonds and obligations | ||
Assets | ||
Available for sale | 280,902 | 283,538 |
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Qualified zone academy bond | ||
Assets | ||
Available for sale | 0 | |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Rabbi trust investments | 0 | 0 |
Loans held for sale | 0 | 0 |
Customer-related positions | 0 | 0 |
Risk participation agreements | 0 | 0 |
Matched customer book | 0 | 0 |
Foreign currency loan | 0 | |
Total | 0 | 6,310 |
Liabilities | ||
Cash flow hedges – interest rate positions | 0 | |
Customer-related positions | 0 | 0 |
Risk participation agreements | 0 | 0 |
Matched customer book | 0 | 0 |
Foreign currency loan | 0 | 0 |
Total | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | State and municipal bonds and obligations | ||
Assets | ||
Municipal bonds | 0 | |
Available for sale | 0 | |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Government-sponsored residential mortgage-backed securities | ||
Assets | ||
Available for sale | 0 | 0 |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Government-sponsored commercial mortgage-backed securities | ||
Assets | ||
Available for sale | 0 | |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | U.S. Agency bonds | ||
Assets | ||
Available for sale | 0 | |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | U.S. Treasury securities | ||
Assets | ||
Available for sale | $ 0 | |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | State and municipal bonds and obligations | State and municipal bonds and obligations | ||
Assets | ||
Available for sale | 0 | |
Fair Value, Recurring | Significant Unobservable Inputs (Level 3) | Qualified zone academy bond | ||
Assets | ||
Available for sale | $ 6,310 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Summary Of The Reconciliation For All Assets And Liabilities Measured At Fair Value On A Recurring Basis Using Significant Unobservable Inputs Level (3) (Detail) - Available-for-sale Securities - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | $ 6,045 | $ 5,936 | |
Gains and losses (realized/unrealized): | |||
Included in net income | $ 106 | 109 | $ 109 |
Included in other comprehensive income | (156) | (156) | |
Settlement | (6,260) | ||
Ending balance | $ 0 | $ 6,310 |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities - Summary Of The Fair Value Of Assets And Liabilities Measured At Fair Value On A Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Collateral-dependent impaired loans whose fair value is based upon appraisals | $ 0 | |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Collateral-dependent impaired loans whose fair value is based upon appraisals | 0 | |
Fair Value, Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Collateral-dependent impaired loans whose fair value is based upon appraisals | $ 11,036 | 4,261 |
Fair Value, Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Collateral-dependent impaired loans whose fair value is based upon appraisals | 0 | |
Fair Value, Nonrecurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Collateral-dependent impaired loans whose fair value is based upon appraisals | 0 | |
Fair Value, Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Collateral-dependent impaired loans whose fair value is based upon appraisals | $ 11,036 | $ 4,261 |
Fair Value of Assets and Liab_7
Fair Value of Assets and Liabilities - Schedule of Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Loans, net of allowance for credit losses | $ 9,593,958 | $ 8,899,184 |
FHLB stock | 8,805 | 9,027 |
Bank-owned life insurance | 78,561 | 77,546 |
Deposits | 12,155,784 | 9,551,392 |
FHLB advances | 14,624 | 18,964 |
Escrow deposits from borrowers | 13,425 | 15,349 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Loans, net of allowance for credit losses | 0 | 0 |
FHLB stock | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Deposits | 0 | 0 |
FHLB advances | 0 | 0 |
Escrow deposits from borrowers | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Loans, net of allowance for credit losses | 0 | 0 |
FHLB stock | 8,805 | 9,027 |
Bank-owned life insurance | 78,561 | 77,546 |
Deposits | 12,155,843 | 9,548,889 |
FHLB advances | 14,434 | 18,188 |
Escrow deposits from borrowers | 13,425 | 15,349 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Loans, net of allowance for credit losses | 9,779,195 | 9,116,018 |
FHLB stock | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Deposits | 0 | 0 |
FHLB advances | 0 | 0 |
Escrow deposits from borrowers | 0 | 0 |
Carrying Value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Loans, net of allowance for credit losses | 9,593,958 | 8,889,184 |
FHLB stock | 8,805 | 9,027 |
Bank-owned life insurance | 78,561 | 77,546 |
Deposits | 12,155,784 | 9,551,392 |
FHLB advances | 14,624 | 18,964 |
Escrow deposits from borrowers | 13,425 | 15,349 |
Fair Value | ||
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items] | ||
Loans, net of allowance for credit losses | 9,779,195 | 9,116,018 |
FHLB stock | 8,805 | 9,027 |
Bank-owned life insurance | 78,561 | 77,546 |
Deposits | 12,155,843 | 9,548,889 |
FHLB advances | 14,434 | 18,188 |
Escrow deposits from borrowers | $ 13,425 | $ 15,349 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Revenue from External Customers by Products and Services (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from External Customer [Line Items] | |||||||||||
Total noninterest income in-scope of ASC 606 | $ 154,745 | $ 156,218 | $ 164,053 | ||||||||
Total noninterest income out-of-scope of ASC 606 | 23,628 | 26,081 | 16,542 | ||||||||
Total noninterest income | $ 49,638 | $ 47,709 | $ 47,657 | $ 33,369 | $ 47,277 | $ 41,590 | $ 45,632 | $ 47,800 | 178,373 | 182,299 | 180,595 |
Insurance commissions | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total noninterest income in-scope of ASC 606 | 94,495 | 90,587 | 91,885 | ||||||||
Service charges on deposit accounts | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total noninterest income in-scope of ASC 606 | 21,560 | 27,043 | 26,897 | ||||||||
Trust and investment advisory fees | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total noninterest income in-scope of ASC 606 | 21,102 | 19,653 | 19,128 | ||||||||
Debit card processing fees | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total noninterest income in-scope of ASC 606 | 10,277 | 10,452 | 16,162 | ||||||||
Other non-interest income | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total noninterest income in-scope of ASC 606 | $ 7,311 | $ 8,483 | $ 9,981 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Narrative (Detail) - Other Assets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disaggregation of Revenue [Line Items] | ||
Insurance commission earned but not yet received | $ 15.8 | $ 3.9 |
Cash Management Fees | ||
Disaggregation of Revenue [Line Items] | ||
Fess earned but not yet received | 1 | 0.8 |
Debit Card | ||
Disaggregation of Revenue [Line Items] | ||
Fess earned but not yet received | $ 0.3 | $ 0.3 |
Other Comprehensive Income - Co
Other Comprehensive Income - Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Unrealized gains (losses) on securities available for sale: | |||||
Change in fair value of securities available for sale, Pre Tax Amount | $ 30,926 | $ 54,881 | $ (39,144) | ||
Less: reclassification adjustments for gains included in net income, Pre-Tax Amount | 288 | 2,016 | 50 | ||
Net change in fair value of securities available for sale, Pre Tax Amount | 30,638 | 52,865 | (39,194) | ||
Unrealized gains (losses) on cash flow hedges: | |||||
Change in fair value of cash flow hedges, Pre Tax Amount | $ 46,871 | $ 20,275 | 46,871 | 20,275 | 5,354 |
Less: net cash flow hedge losses reclassified into interest income, Pre Tax Amount | 27,131 | 2,698 | 1,198 | ||
Net change in fair value of cash flow hedges, Pre Tax Amount | 19,740 | 17,577 | 4,156 | ||
Defined benefit pension plans: | |||||
Change in actuarial loss, Pre Tax Amount | (58,811) | (37,722) | 2,680 | ||
Less: amortization of actuarial net loss, Pre Tax Amount | (10,787) | (7,242) | (7,621) | ||
Plan amendment – prior service credit, Pre Tax Amount | 133,439 | ||||
Less: amortization of prior service cost | 1,931 | (44) | (44) | ||
Net change in other comprehensive income for defined benefit postretirement plans, Pre Tax Amount | 83,484 | (30,436) | 10,345 | ||
Total other comprehensive income, Pre Tax Amount | 133,862 | 40,006 | (24,693) | ||
Unrealized gains (losses) on securities available for sale: | |||||
Change in fair value of securities available for sale, Tax (Expense) Benefit | (6,828) | (12,166) | 8,659 | ||
Less: reclassification adjustments for gains included in net income, Tax (Expense) Benefit | (64) | (459) | (10) | ||
Net change in fair value of securities available for sale, Tax (Expense) Benefit | (6,764) | (11,707) | 8,669 | ||
Unrealized gains (losses) on cash flow hedges: | |||||
Change in fair value of cash flow hedges, Tax (Expense) Benefit | (13,175) | (5,699) | (1,505) | ||
Less: net cash flow hedge losses reclassified into interest income, Tax (Expense) Benefit | (7,626) | (758) | (337) | ||
Net change in fair value of cash flow hedges, Tax (Expense) Benefit | (5,549) | (4,941) | (1,168) | ||
Defined benefit pension plans: | |||||
Change in actuarial net loss, Tax (Expense) Benefit | 16,532 | 10,603 | (754) | ||
Less: amortization of actuarial net loss, Tax (Expense) Benefit | 3,033 | (2,036) | (2,142) | ||
Plan amendment – prior service credit, Tax (Expense) Benefit | (37,510) | ||||
Less: net accretion of prior service credit, Tax (Expense) Benefit | (543) | 11 | 12 | ||
Net change in other comprehensive income for defined benefit postretirement plans, Tax (Expense) Benefit | (23,468) | 8,556 | (2,908) | ||
Total other comprehensive income, Tax (Expense) Benefit | (35,781) | (8,092) | 4,593 | ||
Unrealized gains (losses) on securities available for sale: | |||||
Change in fair value of securities available for sale, After Tax Amount | 24,098 | 42,715 | (30,485) | ||
Less: reclassification adjustment for gains included in net income, After Tax Amount | 224 | 1,557 | 40 | ||
Net change in fair value of securities available for sale, After Tax Amount | 23,874 | 41,158 | (30,525) | ||
Unrealized gains (losses) on cash flow hedges: | |||||
Change in fair value of cash flow hedges, After Tax Amount | 33,696 | 14,576 | 3,849 | ||
Less: net cash flow hedge losses reclassified into interest income, Amount After Tax | 19,505 | 1,940 | 861 | ||
Net change in fair value of cash flow hedges, Amount After Tax | 14,191 | 12,636 | 2,988 | ||
Defined benefit pension plans: | |||||
Change in actuarial net loss, After Tax Amount | (42,279) | (27,119) | 1,926 | ||
Less: amortization of actuarial net loss, After Tax Amount | (7,754) | (5,206) | (5,479) | ||
Plan amendment - prior service credit, After Tax | 95,929 | ||||
Less: amortization of prior service cost, After Tax Amount | 1,388 | (33) | (32) | ||
Net change in other comprehensive income for defined benefit postretirement plans, Amount After Tax | 60,016 | (21,880) | 7,437 | ||
Total other comprehensive income, After Tax Amount | 98,081 | 31,914 | (20,100) | ||
Amortization of gains from terminated interest rate swaps | (15,889) | $ 0 | $ 0 | ||
Total realized gain, net of tax | 41,200 | 41,200 | |||
Balance of gain after amortization, net of tax | 29,800 | $ 29,800 | |||
Interest rate swaps | |||||
Defined benefit pension plans: | |||||
Amortization of gains from terminated interest rate swaps | $ 11,400 |
Other Comprehensive Income - Sc
Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 1,600,153 | $ 1,433,141 | $ 1,330,514 |
Other comprehensive income (loss) before reclassifications | 111,444 | 30,172 | (26,636) |
Less: Amounts reclassified from accumulated other comprehensive income | 13,363 | (1,742) | (6,536) |
Net current-period other comprehensive income | 98,081 | 31,914 | (20,100) |
Ending balance | 3,428,052 | 1,600,153 | 1,433,141 |
Defined Benefit Pension Plans | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (81,269) | (59,389) | (66,826) |
Other comprehensive income (loss) before reclassifications | 53,650 | (27,119) | 0 |
Less: Amounts reclassified from accumulated other comprehensive income | (6,366) | (5,239) | (7,437) |
Net current-period other comprehensive income | 60,016 | (21,880) | 7,437 |
Ending balance | (21,253) | (81,269) | (59,389) |
AOCI Including Portion Attributable to Noncontrolling Interest | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (43,847) | (75,761) | (55,661) |
Ending balance | 54,234 | (43,847) | (75,761) |
Unrealized Gains and (Losses) on Cash Flow Hedges | Unrealized Gains and (Losses) on Cash Flow Hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 15,624 | 2,988 | 0 |
Other comprehensive income (loss) before reclassifications | 33,696 | 14,576 | 3,849 |
Less: Amounts reclassified from accumulated other comprehensive income | 19,505 | 1,940 | 861 |
Net current-period other comprehensive income | 14,191 | 12,636 | 2,988 |
Ending balance | 29,815 | 15,624 | 2,988 |
Unrealized Gains and (Losses) on Available for Sale Securities | Unrealized Gains and (Losses) on Available for Sale Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 21,798 | (19,360) | 11,165 |
Other comprehensive income (loss) before reclassifications | 24,098 | 42,715 | (30,485) |
Less: Amounts reclassified from accumulated other comprehensive income | 224 | 1,557 | 40 |
Net current-period other comprehensive income | 23,874 | 41,158 | (30,525) |
Ending balance | $ 45,672 | $ 21,798 | $ (19,360) |
Other Comprehensive Income - _2
Other Comprehensive Income - Schedule of Reclassified Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Tax (expense) or benefit | $ 2,761 | $ (7,429) | $ (7,197) | $ (1,298) | $ (9,541) | $ (9,230) | $ (11,032) | $ (9,678) | $ (13,163) | $ (39,481) | $ (34,884) |
Net of tax | $ (44,062) | $ 28,505 | $ 29,850 | $ 8,445 | $ 31,238 | $ 35,842 | $ 35,053 | $ 32,965 | 22,738 | 135,098 | 122,727 |
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Net of tax | 13,363 | (1,742) | (4,610) | ||||||||
Unrealized gains and losses on available-for-sale securities | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Gain/(loss) on sale of securities | 288 | 2,016 | 50 | ||||||||
Total before tax | 288 | 2,016 | 50 | ||||||||
Tax (expense) or benefit | (64) | (459) | (10) | ||||||||
Net of tax | 224 | 1,557 | 40 | ||||||||
Unrealized gains and losses on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Total before tax | 27,131 | 2,698 | 1,198 | ||||||||
Interest income | 27,131 | 2,698 | 1,198 | ||||||||
Tax (expense) or benefit | (7,626) | (758) | (337) | ||||||||
Net of tax | 19,505 | 1,940 | 861 | ||||||||
Amortization of defined benefit pension items | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Other Nonoperating Income (Expense) | (10,787) | (7,242) | (7,621) | ||||||||
Accretion (amortization) of prior service credit (cost) | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Total before tax | (8,856) | (7,286) | (7,665) | ||||||||
Tax (expense) or benefit | 2,490 | 2,047 | 2,154 | ||||||||
Other Nonoperating Income (Expense) | 1,931 | (44) | (44) | ||||||||
Net of tax | $ (6,366) | $ (5,239) | $ (5,511) |
Segment Reporting - Schedule Of
Segment Reporting - Schedule Of Segment Reporting Information, By Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Net interest income | $ 103,608 | $ 98,742 | $ 98,755 | $ 100,146 | $ 100,921 | $ 104,148 | $ 103,523 | $ 102,672 | $ 401,251 | $ 411,264 | $ 390,044 |
Provision for loan losses | 38,800 | 6,300 | 15,100 | ||||||||
Net interest income after provision for loan losses | 102,708 | 98,042 | 90,155 | 71,546 | 99,121 | 104,148 | 102,023 | 99,672 | 362,451 | 404,964 | 374,944 |
Noninterest income | 49,638 | 47,709 | 47,657 | 33,369 | 47,277 | 41,590 | 45,632 | 47,800 | 178,373 | 182,299 | 180,595 |
Noninterest expense | 199,169 | 109,817 | 100,765 | 95,172 | 105,619 | 100,666 | 101,570 | 104,829 | 504,923 | 412,684 | 397,928 |
Income before provision for income taxes | (46,823) | 35,934 | 37,047 | 9,743 | 40,779 | 45,072 | 46,085 | 42,643 | 35,901 | 174,579 | 157,611 |
Tax (expense) or benefit | (2,761) | 7,429 | 7,197 | 1,298 | 9,541 | 9,230 | 11,032 | 9,678 | 13,163 | 39,481 | 34,884 |
Net income | (44,062) | $ 28,505 | $ 29,850 | $ 8,445 | 31,238 | $ 35,842 | $ 35,053 | $ 32,965 | 22,738 | 135,098 | 122,727 |
Total assets | 15,964,190 | 11,628,775 | 15,964,190 | 11,628,775 | 11,378,287 | ||||||
Total liabilities | 12,536,138 | 10,028,622 | 12,536,138 | 10,028,622 | 9,945,146 | ||||||
Other/Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net interest income | 0 | 0 | 0 | ||||||||
Provision for loan losses | 0 | 0 | 0 | ||||||||
Net interest income after provision for loan losses | 0 | 0 | 0 | ||||||||
Noninterest income | (700) | (246) | (234) | ||||||||
Noninterest expense | (4,588) | (3,682) | (2,880) | ||||||||
Income before provision for income taxes | 3,888 | 3,436 | 2,646 | ||||||||
Tax (expense) or benefit | 0 | 0 | 0 | ||||||||
Net income | 3,888 | 3,436 | 2,646 | ||||||||
Total assets | (67,201) | (52,307) | (67,201) | (52,307) | (40,297) | ||||||
Total liabilities | (67,201) | (52,307) | (67,201) | (52,307) | (40,297) | ||||||
Banking Business | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net interest income | 401,251 | 411,264 | 390,044 | ||||||||
Provision for loan losses | 38,800 | 6,300 | 15,100 | ||||||||
Net interest income after provision for loan losses | 362,451 | 404,964 | 374,944 | ||||||||
Noninterest income | 82,334 | 89,840 | 86,596 | ||||||||
Noninterest expense | 431,705 | 337,323 | 326,956 | ||||||||
Income before provision for income taxes | 13,080 | 157,481 | 134,584 | ||||||||
Tax (expense) or benefit | 7,870 | 35,542 | 29,313 | ||||||||
Net income | 5,210 | 121,939 | 105,271 | ||||||||
Total assets | 15,831,175 | 11,515,117 | 15,831,175 | 11,515,117 | 11,265,752 | ||||||
Total liabilities | 12,547,838 | 10,046,189 | 12,547,838 | 10,046,189 | 9,954,112 | ||||||
Insurance Agency Business | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net interest income | 0 | 0 | 0 | ||||||||
Provision for loan losses | 0 | 0 | 0 | ||||||||
Net interest income after provision for loan losses | 0 | 0 | 0 | ||||||||
Noninterest income | 96,739 | 92,705 | 94,233 | ||||||||
Noninterest expense | 77,806 | 79,043 | 73,852 | ||||||||
Income before provision for income taxes | 18,933 | 13,662 | 20,381 | ||||||||
Tax (expense) or benefit | 5,293 | 3,939 | 5,571 | ||||||||
Net income | 13,640 | 9,723 | 14,810 | ||||||||
Total assets | 200,216 | 165,965 | 200,216 | 165,965 | 152,832 | ||||||
Total liabilities | $ 55,501 | $ 34,740 | $ 55,501 | $ 34,740 | $ 31,331 |
Parents Company Financial Sta_3
Parents Company Financial Statements - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets [Abstract] | ||||
Goodwill and other intangibles, net | $ 376,534 | $ 377,734 | ||
Deferred income taxes, net | 13,229 | 28,207 | ||
Other assets | 455,954 | 246,463 | ||
Total assets | 15,964,190 | 11,628,775 | $ 11,378,287 | |
Liabilities [Abstract] | ||||
Other liabilities | 352,305 | 241,835 | ||
Total liabilities | 12,536,138 | 10,028,622 | 9,945,146 | |
Shareholders’ equity | ||||
Total shareholders' equity | 3,428,052 | 1,600,153 | $ 1,433,141 | $ 1,330,514 |
Total liabilities and equity | 15,964,190 | 11,628,775 | ||
Parent Company | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 741,034 | 4,730 | ||
Goodwill and other intangibles, net | 744 | 744 | ||
Deferred income taxes, net | 10,817 | 0 | ||
Investment in subsidiaries | 2,674,133 | 1,594,024 | ||
Other assets | 1,324 | 771 | ||
Total assets | 3,428,052 | 1,600,269 | ||
Liabilities [Abstract] | ||||
Other liabilities | 0 | 116 | ||
Total liabilities | 0 | 116 | ||
Shareholders’ equity | ||||
Total shareholders' equity | 3,428,052 | 1,600,153 | ||
Total liabilities and equity | $ 3,428,052 | $ 1,600,269 |
Parents Company Financial Sta_4
Parents Company Financial Statements - Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Expenses | |||||||||||
Professional services | $ 18,902 | $ 15,958 | $ 14,812 | ||||||||
Charitable contributions | 95,272 | 12,905 | 13,251 | ||||||||
Other | 27,670 | 29,554 | 26,753 | ||||||||
Total noninterest expense | $ 199,169 | $ 109,817 | $ 100,765 | $ 95,172 | $ 105,619 | $ 100,666 | $ 101,570 | $ 104,829 | 504,923 | 412,684 | 397,928 |
Income tax provision (benefit) | (2,761) | 7,429 | 7,197 | 1,298 | 9,541 | 9,230 | 11,032 | 9,678 | 13,163 | 39,481 | 34,884 |
Net income | $ (44,062) | $ 28,505 | $ 29,850 | $ 8,445 | $ 31,238 | $ 35,842 | $ 35,053 | $ 32,965 | 22,738 | 135,098 | 122,727 |
Parent | |||||||||||
Expenses | |||||||||||
Professional services | 1,485 | 360 | 255 | ||||||||
Charitable contributions | 91,287 | 0 | 0 | ||||||||
Other | 151 | 105 | 129 | ||||||||
Total noninterest expense | 92,923 | 465 | 384 | ||||||||
Loss before income taxes and equity in undistributed income of subsidiaries | (92,923) | (465) | (384) | ||||||||
Income tax provision (benefit) | (13,933) | (131) | (108) | ||||||||
Loss before equity in undistributed income of subsidiaries | (78,990) | (334) | (276) | ||||||||
Equity in undistributed income of subsidiaries | 101,728 | 135,432 | 123,003 | ||||||||
Net income | $ 22,738 | $ 135,098 | $ 122,727 |
Parents Company Financial Sta_5
Parents Company Financial Statements - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities | |||||||||||
Net income | $ (44,062) | $ 28,505 | $ 29,850 | $ 8,445 | $ 31,238 | $ 35,842 | $ 35,053 | $ 32,965 | $ 22,738 | $ 135,098 | $ 122,727 |
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
ESOP expense | 2,351 | 0 | 0 | ||||||||
Net cash provided by operating activities | 69,851 | 196,223 | 205,009 | ||||||||
Investing activities | |||||||||||
Net cash used in investing activities | (2,390,183) | (145,274) | (647,104) | ||||||||
Financing activities | |||||||||||
Proceeds from issuance of common shares | 1,792,878 | 0 | 0 | ||||||||
Payments for deferred offering costs | (28,552) | (346) | 0 | ||||||||
Net cash provided by financing activities | 4,011,800 | 51,945 | 390,650 | ||||||||
Net increase in cash and cash equivalents | 1,691,468 | 102,894 | (51,445) | ||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 362,602 | 259,708 | 362,602 | 259,708 | 311,153 | ||||||
Cash, cash equivalents, and restricted cash at end of period | 2,054,070 | 362,602 | 2,054,070 | 362,602 | 259,708 | ||||||
Parent | |||||||||||
Operating activities | |||||||||||
Net income | 22,738 | 135,098 | 122,727 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Equity in undistributed income of subsidiaries | (101,728) | (135,432) | (123,003) | ||||||||
Issuance of common shares donated to the Eastern Bank Charitable Foundation | 91,287 | 0 | 0 | ||||||||
ESOP expense | 2,351 | 0 | 0 | ||||||||
Deferred income taxes, net | (10,817) | 0 | 0 | ||||||||
Other, net | (350) | 25 | (9) | ||||||||
Net cash provided by operating activities | 3,481 | (309) | (285) | ||||||||
Investing activities | |||||||||||
Investment in Eastern Bank | (882,096) | 0 | 0 | ||||||||
Net cash used in investing activities | (882,096) | 0 | 0 | ||||||||
Financing activities | |||||||||||
Proceeds from issuance of common shares | 1,792,878 | 0 | 0 | ||||||||
Purchase of shares by ESOP | (149,407) | 0 | 0 | ||||||||
Payments for deferred offering costs | (28,552) | (346) | 0 | ||||||||
Net cash provided by financing activities | 1,614,919 | (346) | 0 | ||||||||
Net increase in cash and cash equivalents | 736,304 | (655) | (285) | ||||||||
Cash, cash equivalents, and restricted cash at beginning of period | $ 4,730 | $ 5,385 | 4,730 | 5,385 | 5,670 | ||||||
Cash, cash equivalents, and restricted cash at end of period | $ 741,034 | $ 4,730 | $ 741,034 | $ 4,730 | $ 5,385 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total interest and dividend income | $ 104,723 | $ 100,513 | $ 101,933 | $ 106,159 | $ 107,973 | $ 112,723 | $ 112,838 | $ 111,483 | $ 413,328 | $ 445,017 | $ 415,166 |
Total interest expense | 1,115 | 1,771 | 3,178 | 6,013 | 7,052 | 8,575 | 9,315 | 8,811 | 12,077 | 33,753 | 25,122 |
Net interest income | 103,608 | 98,742 | 98,755 | 100,146 | 100,921 | 104,148 | 103,523 | 102,672 | 401,251 | 411,264 | 390,044 |
Provision for loan losses | 900 | 700 | 8,600 | 28,600 | 1,800 | 0 | 1,500 | 3,000 | 38,800 | 6,300 | 15,100 |
Net interest income after provision for loan losses | 102,708 | 98,042 | 90,155 | 71,546 | 99,121 | 104,148 | 102,023 | 99,672 | 362,451 | 404,964 | 374,944 |
Total noninterest income | 49,638 | 47,709 | 47,657 | 33,369 | 47,277 | 41,590 | 45,632 | 47,800 | 178,373 | 182,299 | 180,595 |
Total noninterest expense | 199,169 | 109,817 | 100,765 | 95,172 | 105,619 | 100,666 | 101,570 | 104,829 | 504,923 | 412,684 | 397,928 |
Income before income tax expense | (46,823) | 35,934 | 37,047 | 9,743 | 40,779 | 45,072 | 46,085 | 42,643 | 35,901 | 174,579 | 157,611 |
Income tax provision (benefit) | (2,761) | 7,429 | 7,197 | 1,298 | 9,541 | 9,230 | 11,032 | 9,678 | 13,163 | 39,481 | 34,884 |
Net income | $ (44,062) | $ 28,505 | $ 29,850 | $ 8,445 | $ 31,238 | $ 35,842 | $ 35,053 | $ 32,965 | $ 22,738 | $ 135,098 | $ 122,727 |
Earnings per common share | |||||||||||
Basic (in dollars per share) | $ (0.26) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0.13 | $ 0 | $ 0 |
Diluted (in dollars per share) | $ (0.26) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0.13 | $ 0 | $ 0 |
Basic (in shares) | 171,812,535 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 171,812,535 | 0 | 0 |
Diluted (in shares) | 171,812,535 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 171,812,535 |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transactions [Abstract] | ||
Deposits from related parties | $ 10.4 | $ 8.3 |
Loans with related parties | 21 | $ 15.5 |
Lending commitments to related parties | $ 17.3 |
Subsequent Events (Detail)
Subsequent Events (Detail) - Subsequent Event - USD ($) $ / shares in Units, $ in Millions | Jan. 28, 2021 | Mar. 15, 2021 |
Subsequent Event [Line Items] | ||
Dividends declared (in dollars per share) | $ 0.06 | |
Dividends payable | $ 11.2 |