Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 15, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CATC | ||
Entity Registrant Name | CAMBRIDGE BANCORP | ||
Entity Central Index Key | 0000711772 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Public Float | $ 315.4 | ||
Entity Common Stock, Shares Outstanding | 4,123,636 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 18,473 | $ 103,591 |
Investment securities | ||
Available for sale, at fair value (amortized cost $172,290 and $208,911, respectively) | 168,163 | 205,017 |
Held to maturity, at amortized cost (fair value $281,310 and $233,554, respectively) | 282,869 | 232,188 |
Total investment securities | 451,032 | 437,205 |
Loans | ||
Residential mortgage | 604,331 | 538,920 |
Commercial mortgage | 757,957 | 633,649 |
Home equity | 69,336 | 74,444 |
Commercial & Industrial | 93,712 | 65,295 |
Consumer | 34,436 | 38,591 |
Total loans | 1,559,772 | 1,350,899 |
Less: allowance for loan losses | (16,768) | (15,320) |
Net loans | 1,543,004 | 1,335,579 |
Federal Home Loan Bank of Boston Stock, at cost | 6,844 | 4,242 |
Bank owned life insurance | 30,933 | 31,083 |
Banking premises and equipment, net | 8,578 | 9,310 |
Deferred income taxes, net | 8,717 | 8,273 |
Accrued interest receivable | 5,762 | 5,128 |
Other assets | 28,041 | 15,523 |
Total assets | 2,101,384 | 1,949,934 |
Deposits | ||
Demand | 494,492 | 493,613 |
Interest bearing checking | 431,702 | 462,957 |
Money market | 135,585 | 69,259 |
Savings | 628,212 | 589,741 |
Certificates of deposit | 121,419 | 159,830 |
Total deposits | 1,811,410 | 1,775,400 |
Short-term borrowings | 90,000 | |
Long-term borrowings | 3,409 | 3,579 |
Other liabilities | 29,539 | 22,998 |
Total liabilities | 1,934,358 | 1,801,977 |
Shareholders’ Equity | ||
Common stock, par value $1.00; Authorized 10,000,000 shares; Outstanding: 4,082,188 shares and 4,036,879 shares, respectively | 4,107 | 4,082 |
Additional paid-in capital | 38,271 | 35,663 |
Retained earnings | 131,135 | 114,093 |
Accumulated other comprehensive loss | (6,487) | (5,881) |
Total shareholders’ equity | 167,026 | 147,957 |
Total liabilities and shareholders’ equity | $ 2,101,384 | $ 1,949,934 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Available for sale securities, amortized cost | $ 172,290 | $ 208,911 |
Held-to-maturity securities, fair value | $ 281,310 | $ 233,554 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares, outstanding | 4,107,051 | 4,082,188 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest and dividend income | |||
Interest on taxable loans | $ 57,941 | $ 51,238 | $ 48,353 |
Interest on tax-exempt loans | 371 | 496 | 415 |
Interest on taxable investment securities | 7,457 | 6,321 | 5,230 |
Interest on tax-exempt investment securities | 2,404 | 2,600 | 2,737 |
Dividends on FHLB of Boston stock | 287 | 245 | 179 |
Interest on overnight investments | 595 | 291 | 114 |
Total interest and dividend income | 69,055 | 61,191 | 57,028 |
Interest expense | |||
Interest on deposits | 5,023 | 3,125 | 3,260 |
Interest on borrowed funds | 444 | 462 | 95 |
Total interest expense | 5,467 | 3,587 | 3,355 |
Net interest and dividend income | 63,588 | 57,604 | 53,673 |
Provision for Loan Losses | 1,502 | 362 | 132 |
Net interest and dividend income after provision for loan losses | 62,086 | 57,242 | 53,541 |
Noninterest income | |||
Bank owned life insurance income | 526 | 584 | 612 |
Gain (loss) on disposition of investment securities | 2 | (3) | 438 |
Gain on loans held for sale | 99 | 355 | 916 |
Loan related derivative income | 1,651 | 780 | 1,323 |
Other income | 1,269 | 1,155 | 921 |
Total noninterest income | 32,989 | 30,224 | 28,661 |
Noninterest expense | |||
Salaries and employee benefits | 41,212 | 36,455 | 34,529 |
Occupancy and equipment | 9,072 | 9,114 | 9,331 |
Data processing | 5,177 | 4,956 | 5,024 |
Professional services | 3,258 | 3,374 | 2,394 |
Marketing | 2,229 | 1,620 | 1,706 |
FDIC Insurance | 574 | 629 | 834 |
Merger expenses | 201 | ||
Other expenses | 2,264 | 3,144 | 2,932 |
Total noninterest expense | 63,987 | 59,292 | 56,750 |
Income before income taxes | 31,088 | 28,174 | 25,452 |
Income tax expense | 7,207 | 13,358 | 8,556 |
Net income | $ 23,881 | $ 14,816 | $ 16,896 |
Share data: | |||
Weighted average number of shares outstanding, basic | 4,061,529 | 4,030,530 | 3,990,343 |
Weighted average number of shares outstanding, diluted | 4,098,633 | 4,065,754 | 4,028,944 |
Basic earnings per share | $ 5.82 | $ 3.64 | $ 4.19 |
Diluted earnings per share | $ 5.77 | $ 3.61 | $ 4.15 |
Wealth Management Revenue | |||
Noninterest income | |||
Noninterest income | $ 25,191 | $ 23,029 | $ 20,389 |
Deposit Account Fees | |||
Noninterest income | |||
Noninterest income | 3,071 | 3,142 | 2,922 |
ATM/Debit Card Income | |||
Noninterest income | |||
Noninterest income | $ 1,180 | $ 1,182 | $ 1,140 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 23,881 | $ 14,816 | $ 16,896 |
Unrealized (losses)/gains on available for sale securities | |||
Unrealized holding (losses)/gains arising during period | (242) | 128 | (735) |
Less: reclassification adjustment for (gains)/losses included in net income | (2) | 1 | (281) |
Total unrealized (losses)/gains on securities | (244) | 129 | (1,016) |
Derivatives | |||
Change in interest rate contracts | 751 | ||
Defined benefit retirement plans | |||
Change in retirement liabilities | 89 | 3,871 | (437) |
Other comprehensive income/(loss) | 596 | 4,000 | (1,453) |
Comprehensive income | $ 24,477 | $ 18,816 | $ 15,443 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income |
Beginning balance at Dec. 31, 2015 | $ 125,063 | $ 4,000 | $ 30,427 | $ 99,064 | $ (8,428) |
Net income | 16,896 | 16,896 | |||
Other comprehensive (loss) income | (1,453) | (1,453) | |||
Share based compensation | 1,593 | 37 | 2,826 | (1,270) | |
Dividends declared | (7,428) | (7,428) | |||
Ending balance at Dec. 31, 2016 | 134,671 | 4,037 | 33,253 | 107,262 | (9,881) |
Net income | 14,816 | 14,816 | |||
Other comprehensive (loss) income | 4,000 | 4,000 | |||
Share based compensation | 2,052 | 45 | 2,410 | (403) | |
Dividends declared | (7,582) | (7,582) | |||
Ending balance at Dec. 31, 2017 | 147,957 | 4,082 | 35,663 | 114,093 | (5,881) |
Cumulative effect of accounting changes | 1,202 | (1,202) | |||
Net income | 23,881 | 23,881 | |||
Other comprehensive (loss) income | 596 | 596 | |||
Share based compensation | 2,633 | 25 | 2,608 | ||
Dividends declared | (8,041) | (8,041) | |||
Ending balance at Dec. 31, 2018 | $ 167,026 | $ 4,107 | $ 38,271 | $ 131,135 | $ (6,487) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retained Earnings | |||
Dividends declared, per share | $ 1.96 | $ 1.86 | $ 1.84 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 23,881 | $ 14,816 | $ 16,896 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for Loan Losses | 1,502 | 362 | 132 |
Amortization of deferred charges and fees, net | 777 | 972 | 1,655 |
Depreciation and amortization | 1,888 | 1,948 | 2,107 |
Bank owned life insurance income | (526) | (584) | (612) |
(Gain)/loss on disposition of investment securities | (2) | 3 | (438) |
Share based compensation | 2,633 | 2,052 | 1,593 |
Change in accrued interest receivable | (634) | (501) | (405) |
Deferred income tax (benefit)/expense | (721) | 2,687 | (828) |
Change in other assets, net | (12,231) | (758) | (2,509) |
Change in other liabilities, net | 7,455 | 2,264 | 4,748 |
Change in loans held for sale | 6,506 | (6,506) | |
Net cash provided by operating activities | 24,022 | 29,767 | 15,833 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Origination of loans | (596,259) | (354,657) | (275,866) |
Proceeds from principal payments of loans | 387,537 | 323,632 | 147,282 |
Proceeds from calls/maturities of securities available for sale | 35,415 | 47,955 | 156,272 |
Proceeds from sales of securities available for sale and held to maturity | 702 | 77,369 | 18,070 |
Purchase of securities available for sale | (5,091) | (154,719) | |
Proceeds from calls/maturities of securities held to maturity | 33,064 | 34,488 | 11,450 |
Purchase of securities held to maturity | (84,261) | (184,505) | (11,238) |
Proceeds from settlement of bank owned life insurance policies | 676 | ||
(Purchase) sale of FHLB of Boston stock | (2,602) | (144) | 2,367 |
Purchase of banking premises and equipment | (1,155) | (807) | (1,187) |
Net cash used by investing activities | (226,883) | (61,760) | (107,569) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Change in demand, interest bearing, money market and savings accounts | 74,421 | 100,694 | 136,042 |
Change in certificates of deposit | (38,467) | (11,411) | (7,309) |
Change in short-term borrowings | 90,000 | ||
Repayment of long-term borrowings | (170) | (167) | (164) |
Cash dividends paid on common stock | (8,041) | (7,582) | (7,428) |
Net cash provided by financing activities | 117,743 | 81,534 | 121,141 |
Net (decrease)/increase in cash and cash equivalents | (85,118) | 49,541 | 29,405 |
Cash and cash equivalents at beginning of period | 103,591 | 54,050 | 24,645 |
Cash and cash equivalents at end of period | 18,473 | 103,591 | 54,050 |
Cash paid during the period for: | |||
Interest | 5,457 | 3,579 | 3,371 |
Income taxes | $ 8,330 | $ 10,100 | $ 9,205 |
The Business
The Business | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
The Business | 1. THE BUSINESS The accompanying consolidated financial statements include the accounts of Cambridge Bancorp (the “Company”) and its wholly-owned subsidiary, Cambridge Trust Company (the “Bank”), and the Bank’s subsidiaries, Cambridge Trust Company of New Hampshire, Inc., CTC Security Corporation, and CTC Security Corporation III. References to the Company herein relate to the consolidated group of companies. All significant intercompany accounts and transactions have been eliminated in preparation of the consolidated financial statements. The Company is a state-chartered, federally registered bank holding company headquartered in Cambridge, Massachusetts, incorporated in 1983. The Company is the sole shareholder of the Bank, a Massachusetts trust company chartered in 1890 which is a commercial bank. We are a private bank offering a full range of private banking and wealth management services to our clients. The Private Banking business, the Company’s only reportable operating segment, is managed as a single strategic unit. As a Private Bank, the Company focuses on four core services that center around client needs. The core services include Wealth Management, Commercial Banking, Residential Lending, and Personal Banking. The Bank offers a full range of commercial and consumer banking services through its network of 10 full-service private banking offices in Massachusetts. The Bank is engaged principally in the business of attracting deposits from the public and investing those deposits. The Bank invests those funds in various types of loans, including residential and commercial real estate, and a variety of commercial and consumer loans. The Bank also invests its deposits and borrowed funds in investment securities and has two wholly-owned Massachusetts security corporations, CTC Security Corporation and CTC Security Corporation III, for this purpose. Deposits at the Bank are insured by the Federal Deposit Insurance Corporation (“FDIC”) for the maximum amount permitted by FDIC Regulations. Trust and investment management services are offered through the Bank’s full-service branches in Massachusetts, two wealth management offices located in Boston, and three wealth management offices located in New Hampshire in Concord, Manchester, and Portsmouth. The Bank also utilizes its non-depository trust company, Cambridge Trust Company of New Hampshire, Inc., in providing wealth management services in New Hampshire. The assets held for wealth management customers are not assets of the Bank and, accordingly, are not reflected in the accompanying consolidated balance sheets. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for loan losses and the valuation of deferred tax assets are particularly subject to change. Reclassifications Certain amounts in the prior year’s financial statements may have been reclassified to conform with the current year’s presentation. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, amounts due from banks, and overnight investments. Investment Securities Investment securities are classified as either ‘held to maturity’ or ‘available for sale’ in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 320, “ Investments – Debt and Equity Securities. Debt and equity securities not classified as held to maturity are classified as available for sale and carried at fair value with unrealized after-tax gains and losses reported net as a separate component of shareholders’ equity. The Company classifies its securities based on its intention at the time of purchase. Declines in the fair value of investment securities below their amortized cost that are deemed to be other-than-temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income. In estimating other-than-temporary impairment losses, management considers: (1) the length of time and the extent to which the fair value has been less than cost; (2) the financial condition and near-term prospects of the issuer; and (3) 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. Loans and the Allowance for Loan Losses Loans are reported at the amount of their outstanding principal, including deferred loan origination fees and costs, reduced by unearned discounts, and the allowance for loan losses. Loan origination fees, net of related direct incremental loan origination costs, are deferred and amortized as an adjustment to yield over the life of the related loans. Unearned discount is recognized as an adjustment to the loan yield, using the interest method over the contractual life of the related loan. When a loan is paid off, the unamortized portion of net fees or unearned discount is recognized as interest income. Loans are considered delinquent when a payment of principal and/or interest becomes past due 30 days following its scheduled payment due date. Loans on which the accrual of interest has been discontinued are designated non-accrual loans. Accrual of interest income is discontinued when concern exists as to the collectability of principal or interest or typically when a loan becomes over 90 days delinquent. Additionally, when a loan is placed on non-accrual status, all interest previously accrued but not collected is reversed against current period income. Loans are removed from non-accrual when they become less than 90 days past due and when concern no longer exists as to the collectability of principal or interest. Interest collected on non-accruing loans is either applied against principal or reported as income according to management’s judgment as to the collectability of principal. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Under certain circumstances, the Company may restructure the terms of a loan as a concession to a borrower. These restructured loans are generally also considered impaired loans. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. The provision for loan losses and the level of the allowance for loan losses reflects management’s estimate of probable loan losses inherent in the loan portfolio at the balance sheet date. Management uses a systematic process and methodology to establish the allowance for loan losses each quarter. To determine the total allowance for loan losses, an estimate is made by management of the allowance needed for each of the following segments of the loan portfolio: (a) residential mortgage loans, (b) commercial mortgage loans, (c) home equity loans, (d) commercial & industrial loans, and (e) consumer loans. Portfolio segments are further disaggregated into classes of loans. The establishment of the allowance for each portfolio segment is based on a process that evaluates the risk characteristics relevant to each portfolio segment and takes into consideration multiple internal and external factors. Internal factors include, but are not limited to, (a) historic levels and trends in charge-offs, delinquencies, risk ratings, and foreclosures, (b) level and changes in industry, geographic, and credit concentrations, (c) underwriting policies and adherence to such policies, (d) the growth and vintage of the portfolios, and (e) the experience of, and any changes in, lending and credit personnel. External factors include, but are not limited to, (a) conditions and trends in the local and national economy and (b) levels and trends in national delinquent and non-performing loans. The Bank evaluates certain loans individually for specific impairment. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Loans are selected for evaluation based upon internal risk rating, delinquency status, or non-accrual status. A specific allowance amount is allocated to an individual loan when such loan has been deemed impaired and when the amount of the probable loss is able to be estimated. Estimates of loss may be determined by the present value of anticipated future cash flows, the loan’s observable fair market value, or the fair value of the collateral, if the loan is collateral dependent. Risk characteristics relevant to each portfolio segment are as follows: Residential mortgage and home equity loans – The Bank generally does not originate loans in these segments with a loan-to-value ratio greater than 80%, unless covered by private mortgage insurance, and in all cases not greater than a loan-to-value ratio of 97%. The Bank does not originate subprime loans. Loans in these segments are secured by one-to-four family residential real estate, and repayment is primarily dependent on the credit quality of the individual borrower. Commercial mortgage loans – This includes multi-family properties and construction. The Bank generally does not originate loans in this segment with a loan-to-value ratio greater than 75% . Loans in this segment are secured by owner-occupied and nonowner-occupied commercial real estate, and repayment is primarily dependent on the cash flows of the property (if nonowner-occupied) or of the business (if owner-occupied). Commercial loans – Loans in this segment are made to businesses and are generally secured by equipment, accounts receivable, or inventory, as well as the personal guarantees of the principal owners of the business, and repayment is primarily dependent on the cash flows generated by the business. Consumer loans – Loans in this segment are made to individuals and can be secured or unsecured. Repayment is primarily dependent on the credit quality of the individual borrower. The majority of the Bank’s loans are concentrated in Eastern Massachusetts and therefore the overall health of the local economy, including unemployment rates, vacancy rates, and consumer spending levels, can have a material effect on the credit quality of all of these portfolio segments. The process to determine the allowance for loan losses requires management to exercise considerable judgment regarding the risk characteristics of the loan portfolio segments and the effect of relevant internal and external factors. The provision for loan losses charged to income is based on management’s judgment of the amount necessary to maintain the allowance at a level to provide for probable inherent loan losses. When management believes that the collectability of a loan’s principal balance, or portions thereof, is unlikely, the principal amount is charged against the allowance for loan losses. Recoveries on loans that have been previously charged off are credited to the allowance for loan losses as received. The allowance is an estimate, and ultimate losses may vary from current estimates. As adjustments become necessary, they are reported in the results of operations through the provision for loan losses in the period in which they become known. Residential mortgage loans originated and intended for sale in the secondary market are classified as held for sale at the time of their origination and are carried at the lower of cost or fair value on an individual loan basis. Changes in fair value relating to loans held for sale below the loans cost basis are charged against gain on loans held for sale. Gains and losses on the actual sale of the residential loans are recorded in earnings as net gains (losses) on loans held for sale on the consolidated statements of income. Bank Owned Life Insurance Bank owned life insurance (“BOLI”) represents life insurance on the lives of certain active and former employees who have provided positive consent allowing the Bank to be the beneficiary of such policies. Since the Bank is the primary beneficiary of the insurance policies, increases in the cash value of the policies, as well as insurance proceeds received, are recorded in other noninterest income, and are not subject to income taxes. Applicable regulations generally limit our investment in bank-owned life insurance to 25% of our Tier 1 capital plus our allowance for loan losses. The Bank reviews the financial strength of the insurance carriers prior to the purchase of BOLI and at least annually thereafter. Banking Premises and Equipment Land is stated at cost. Buildings, leasehold improvements, and equipment are stated at cost, less accumulated depreciation and amortization, which is computed using the straight-line method over the estimated useful lives of the assets or the terms of the leases, if shorter. The cost of ordinary maintenance and repairs is charged to expense when incurred. Marketing Expense Advertising costs are expensed as incurred. Other Real Estate Owned Other real estate owned (“OREO”) consists of properties formerly pledged as collateral to loans, which have been acquired by the Bank through foreclosure proceedings or acceptance of a deed in lieu of foreclosure. Upon transfer of a loan to foreclosure status, an appraisal is obtained and any excess of the loan balance over the fair value, less estimated costs to sell, is charged against the allowance for loan losses. Expenses and subsequent adjustments to the fair value are treated as other operating expense. Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. Goodwill and intangible assets that are not amortized are tested for impairment, based on their fair values, at least annually. Identifiable intangible assets that are subject to amortization are also reviewed for impairment based on their fair value. Any impairment is recognized as a charge to earnings and the adjusted carrying amount of the intangible asset becomes its new accounting basis. The remaining useful life of an intangible asset that is being amortized is also evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. Mortgage servicing assets are recognized as separate assets when rights are acquired through purchase or through sale of financial assets with servicing rights retained. The fair value of the servicing rights is determined by estimating the present value of future net cash flows, taking into consideration market loan prepayment speeds, discount rates, servicing costs, and other economic factors. For purposes of measuring impairment, the underlying loans are stratified into relatively homogeneous pools based on predominant risk characteristics which include product type (i.e., fixed or adjustable) and interest rate bands. If the aggregate carrying value of the capitalized mortgage servicing rights for a stratum exceeds its fair value, MSR impairment is recognized in earnings through a valuation allowance for the difference. As the loans are repaid and net servicing revenue is earned, the MSR asset is amortized as an offset to loan servicing income. Servicing revenues are expected to exceed this amortization expense. However, if actual prepayment experience or defaults exceed what was originally anticipated, net servicing revenues may be less than expected and mortgage servicing rights may be impaired. Income Taxes The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, the Commonwealth of Massachusetts, the state of New Hampshire, and other states as required. For the year 2018, the Company will file taxes in Massachusetts and New Hampshire. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Deferred tax assets are reviewed quarterly and reduced by a valuation allowance if, based upon the information available, it is more likely than not that some or all of the deferred tax assets will not be realized. Interest and penalties related to unrecognized tax benefits, if incurred, are recognized as a component of income tax expense. The Tax Cuts and Jobs Act of 2017 was enacted on December 22, 2017. Effective in 2018, the change in tax law reduced the Company’s statutory federal tax rate from 35% to 21%. The Company recorded a one-time non-cash write-down of net deferred tax assets of $3.9 million as these deferred tax assets were required to be re-measured using the new lower tax rate in 2017. Fee Revenue Wealth management revenues include asset-based revenues (trust and investment advisory fees) that are primarily accrued as earned based upon a percentage of asset values under management, or administration. Also included in wealth management revenues are transaction-based revenues (financial planning fees and other service fees), which are recognized as revenue to the extent that services have been completed. Fee revenue from deposit service charges is generally recognized when earned. Pension and Retirement Plans The Company sponsored a defined benefit pension plan (the “Pension Plan”) and a postretirement health care plan covering substantially all employees hired before May 2, 2011. On October 23, 2017, the Company announced its decision to freeze the accrual of benefits for all participants in the Pension Plan, effective as of December 31, 2017. Benefits for the Pension Plan were based primarily on years of service and the employee’s average monthly pay during the five highest consecutive plan years of the employee’s final 10 years. Benefits for the postretirement health care plan are based on years of service. Expense for both of these plans is recognized over the employee’s service life utilizing the projected unit credit actuarial cost method. The Company also sponsors non-qualified retirement programs that provide supplemental retirement benefits to certain current and former executives. Prior to 2016, the Company provided individual non-qualified defined benefit supplemental executive retirement plans (“DB SERPs”) to certain executives. The DB SERPs generally provide for an annual benefit payable in equal monthly installments following the executive’s retirement and continuing for at least the remainder of his or her lifetime, with such annual benefit generally based on the executive’s years of service and his or her highest three consecutive years of base salary and bonus. In 2016, the Company’s Board discontinued the use of DB SERPs for new entrants to the Company’s non-qualified retirement programs. Instead, new entrants are provided with individual non-qualified defined contribution supplemental executive retirement plans (“DC SERPs”). Under the DC SERPs, the Company contributes an amount equal to 10% of the executive’s base salary and bonus to his or her account under the Company’s non-qualified deferred compensation plan, the Executive Deferred Compensation Plan. Expense for the DB SERPs is recognized over the executive’s service life utilizing the projected unit credit actuarial cost method. Expense for the DC SERPs is recognized as incurred. The Company maintains a Profit Sharing Plan (“PSP”) that provides for deferral of federal and state income taxes on employee contributions allowed under Section 401(k) of federal law. Beginning in 2018, the Company matched employee contributions up to 100% of the first 4% of each participant’s salary, , up from 3% in 2017. Each year, the Company may also make a discretionary contribution to the PSP. Share-Based Compensation Share-based compensation plans provide for stock option awards, restricted stock awards, nonvested time based share units, and nonvested performance based share units. Compensation expense for nonvested restricted stock awards is recognized over the service period based on the fair value at the date of grant. Awards of nonvested time based share units and nonvested performance share units are valued at the fair market value of the Company’s common stock as of the award date. Nonvested performance share unit compensation expense is based on the most recent performance assumption available and is adjusted as assumptions change. If the goals are not met, vesting does not occur and no compensation cost will be recognized and any recognized compensation costs will be reversed. Stock-based awards that do not require future service are expensed in the year of grant. Derivative Instruments and Hedging Activities Derivatives are recognized as either assets or liabilities on the balance sheet and are measured at fair value. The accounting for changes in the fair value of such derivatives depends on the intended use of the derivative and resulting designation. For derivatives not designated as hedges, changes in fair value of the derivative instruments are recognized in earnings in noninterest income. For derivatives designated as fair value hedges, changes in the fair value of such derivatives are recognized in earnings together with the changes in the fair value of the related hedged item. The net amount, if any, represents hedge ineffectiveness and is reflected in earnings. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is recorded in other comprehensive income (loss) and recognized in earnings when the hedged transaction affects earnings. The ineffective portion of changes in the fair value of cash flow hedges is recognized directly in earnings. Fair Value Measurements Fair value is defined as 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. The Company measures the fair values of its financial instruments in accordance with accounting guidance that requires an entity to base fair value on exit price and maximize the use of observable inputs and minimize the use of unobservable inputs to determine the exit price. ASC 820, “ Fair Value Measurements and Disclosures” Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The type of financial instruments included in Level 1 are highly liquid cash instruments with quoted prices such as government or agency securities, listed equities and money market securities, as well as listed derivative instruments. Level 2 – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these financial instruments includes cash instruments for which quoted prices are available but traded less frequently, derivative instruments whose fair value has been derived using a model where inputs to the model are directly observable in the market, or can be derived principally from or corroborated by observable market data, and instruments that are fair valued using other financial instruments, the parameters of which can be directly observed. Instruments which are generally included in this category are corporate bonds and loans, mortgage whole loans, municipal bonds and over-the-counter derivatives. Level 3 – Instruments that have little to no pricing observability as of the reported date. These financial instruments do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment to estimation. Instruments that are included in this category generally include certain commercial mortgage loans, certain private equity investments, distressed debt, non-investment grade residual interests in securitizations, as well as certain highly structured over-the-counter derivative contracts. Earnings per Common Share Earnings per common share is computed using the two-class method prescribed under ASC Topic 260, “Earnings Per Share.” ASC Topic 260 provides that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. We have determined that our outstanding non-vested stock awards are participating securities. Under the two-class method, basic earnings per common share is computed by dividing net earnings allocated to common stock by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of common stock equivalents. A reconciliation of the weighted-average shares used in calculating basic earnings per common share and the weighted average common shares used in calculating diluted earnings per common share for the reported periods is provided in Note 21 - Earnings Per Share. Subsequent Events Management has reviewed events occurring through March 18, 2019, the date the consolidated financial statements were issued and determined that no subsequent events occurred requiring adjustment to or disclosure in these financial statements. |
Recently Issued and Adopted Acc
Recently Issued and Adopted Accounting Standards | 12 Months Ended |
Dec. 31, 2018 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recently Issued and Adopted Accounting Standards | 3. Recently Issued and Adopted Accounting Standards Accounting Standards Update 2018-16 - Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes Accounting Standards Update 2018-15 - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . Accounting Standards Update 2018-14 - Changes to the Disclosure Requirements for Defined Benefit Plans . Accounting Standards Update 2018-13 - Changes to the Disclosure Requirements for Fair Value Measurement . Accounting Standards Update 2018-07 - Improvements to Nonemployee Share-Based Payment Accounting Revenue from Contracts with Customers Accounting Standards Update No. 2018-02 - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income • a description of the accounting policy for releasing income tax effects from AOCI, • whether we elect to reclassify the stranded income tax effects from the Tax Cuts and Jobs Act, and • information about the other income tax effects that are reclassified. The amendments in this ASU affect any organization that is required to apply the provisions of Topic 220, Income Statement —Reporting Comprehensive Income Accounting Standard Update No. Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities h is s e e s ta da r a a l l o c p a i e b t a l i e i e g a c c o n t i n a r i s a n a e ac t i v i t i es d c c o s a c m l e x i t a p l y i h d g a c c o n t i n T s ta d a r r q i r e c p a n i e c h a n h r c o n i t i a r s n t a t i o o t f c t h d g a c c o n ti b y • e li m i n a ti t q u i r e t s e a r a t l m a s r a p e g i e ff e c ti v n s s a n • re q i r i c m t p e s n a h l m n e a c o n i n a a e c e a a i n c m s t a e l i e d e i The standard also permits hedge accounting for strategies for which hedge accounting was not historically permitted and includes new alternatives for measuring the hedged item for fair value hedges of interest rate risk. Furthermore, the standard eases the requirements for effectiveness testing, hedge documentation, applying the critical terms match method, and introduces new alternatives that will permit companies to reduce the risk of material error corrections if they misapply the shortcut method. The new accounting standard is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years; early adoption is permitted. The new standard requires a modified retrospective transition method in which the Company will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. The Company early adopted the standard during the fourth quarter of 2018, using a modified retrospective transition method, and it did not have an effect on our consolidated balance sheets, statements of income, and cash flows. Accounting Standards Update No. 2017-08 - Premium Amortization on Purchased Callable Debt Securities Accounting Standards Update No. 2017-07 - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost Note 13 – Pension and Retirement Plans Accounting Standards Update No. 2016-18 - Restricted Cash Accounting Standards Update No. 2016-15 - Classification of Certain Cash Receipts and Cash Payments . Accounting Standards Update No. 2016-13 - Financial Instruments - Measurement of Credit Losses on Financial Instruments Accounting Standards Update No. 2016-02 - Leases Accounting Standards Update No. 2016-01 - Recognition and Measurement of Financial Assets and Financial Liabilities • requires equity investments (with certain exceptions) to be measured at fair value with changes in fair value recognized in net income, • requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, • requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the statement of condition or the accompanying notes to the financial statements, • clarifies that an entity must assess valuation allowances on a deferred tax asset related to available for sale debt securities in combination with its other deferred tax assets. • requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and • eliminates the requirement for public entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the statement of condition. The amendments, in general, are required to be applied by means of a cumulative-effect adjustment on the statement of condition as of the beginning of the period of adoption. The Company adopted the standard on January 1, 2018, and it did not have a material impact on our consolidated balance sheets, statements of income, or cash flows. Accounting Standards Update No. 2014-09 - Revenue from Contracts with Customers On January 1, 2018, the Company adopted ASU No. 2014-09 and all subsequent ASUs that modified Topic 606. Topic 606 is applicable to noninterest revenue streams such as trust and asset management income, deposit related fees, interchange fees, and merchant income. The Company completed its overall assessment of revenue streams and review of related contracts potentially affected by the ASU, including trust and asset management fees, deposit related fees, and other income within noninterest income. Based on this assessment, the Company concluded that ASU 2014-09 did not materially change the method in which the Company currently recognizes revenue for these revenue streams. The Company adopted ASU 2014-09 and its related amendments utilizing the modified retrospective approach. Since there was no net income impact upon adoption of the new guidance, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Noninterest income considered in-scope of Topic 606 is discussed below. Wealth management and trust fees The Company earns wealth management fees for providing investment management, trust administration, and financial planning services to clients. The Company’s performance obligation under these contracts is satisfied over time as the wealth management services are provided. Fees are recognized monthly based on the average monthly value of the assets under management and the applicable fee rate, or at a fixed annual rate, depending on the terms of the contract. No performance-based incentives are earned on wealth management contracts. The Company earns trust fees for serving as trustee for certain clients. As trustee, the Company serves as a fiduciary, administers the client’s trust and, in some cases, manages the assets of the trust. The Company’s performance obligation under these agreements is satisfied over time as the administration and management services are provided. Fees are recognized monthly based on a percentage of the market value of the account, or at a fixed annual rate, as outlined in the agreement. The Company also earns fees for trust related activities. The Company’s performance obligation under these agreements is satisfied at a point in time and recognized when these services have been performed. All of the wealth management and trust fee income on the consolidated statement of income is considered in-scope of Topic 606. Other banking fee income The Company charges a variety of fees to its clients for services provided on the deposit and deposit management related accounts. Each fee is either transaction-based or assessed monthly. The types of fees include service charges on accounts, overdraft fees, wire transfer fees, maintenance fees, ATM fee charges, and other miscellaneous charges related to the accounts. These fees are not governed by individual contracts with clients. They are charges to clients based on disclosures presented to clients upon opening these accounts along with updated disclosures when changes are made to the fee structures. The transaction-based fees are recognized in revenue when charged to the client based on specific activity on the client’s account. Monthly service and maintenance charges are recognized in the month they are earned and are charged directly to the client’s account. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 4. CASH AND CASH EQUIVALENT At December 31, 2018 and December 31, 2017, cash and due from banks totaled $18.5 million and $103.6 million, respectively. Of this amount, $12.7 million and $12.8 million, respectively, were maintained to satisfy the reserve requirements of the Federal Reserve Bank of Boston (“FRB Boston”). Additionally, at December 31, 2018 and 2017, the Company pledged $500,000 to the New Hampshire Banking Department relating to Cambridge Trust Company of New Hampshire, Inc.’s operations in that state. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | 5. INVESTMENT SECURITIES Investment securities have been classified in the accompanying consolidated balance sheets according to management’s intent. The carrying amounts of securities and their approximate fair values were as follows: December 31, 2018 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) Available for sale securities U.S. GSE obligations $ 75,004 $ — $ (965 ) $ 74,039 $ 90,021 $ — $ (1,230 ) $ 88,791 Mortgage-backed securities 92,271 118 (3,121 ) 89,268 113,184 248 (2,806 ) 110,626 Corporate debt securities 5,015 — (159 ) 4,856 5,034 12 (45 ) 5,001 Mutual funds — — — — 672 — (73 ) 599 Total available for sale securities $ 172,290 $ 118 $ (4,245 ) $ 168,163 $ 208,911 $ 260 $ (4,154 ) $ 205,017 Held to maturity securities U.S. GSE obligations $ 32,571 $ — $ (238 ) $ 32,333 $ 32,572 $ — $ (166 ) $ 32,406 Mortgage-backed securities 168,118 134 (2,290 ) 165,962 117,155 7 (906 ) 116,256 Corporate debt securities 6,972 — (107 ) 6,865 1,998 4 — 2,002 Municipal securities 75,208 1,297 (355 ) 76,150 80,463 2,544 (117 ) 82,890 Total held to maturity securities $ 282,869 $ 1,431 $ (2,990 ) $ 281,310 $ 232,188 $ 2,555 $ (1,189 ) $ 233,554 Total $ 455,159 $ 1,549 $ (7,235 ) $ 449,473 $ 441,099 $ 2,815 $ (5,343 ) $ 438,571 All of the Company’s mortgage-backed securities have been issued by, or are collateralized by securities issued by, either Government National Mortgage Association (Ginnie Mae), Federal National Mortgage Association (Fannie Mae), or Federal Home Loan Mortgage Corporation (Freddie Mac). The amortized cost and fair value of debt investments, aggregated by contractual maturity, are shown below. Maturities of mortgage-backed securities do not take into consideration scheduled amortization or prepayments. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Within One Year After One, But Within Five Years After Five, But Within Ten Years After Ten Years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value At December 31, 2018 (dollars in thousands) Available for sale securities U.S. GSE obligations $ 10,004 $ 9,946 $ 65,000 $ 64,093 $ — $ — $ — $ — $ 75,004 $ 74,039 Mortgage-backed securities — — 78 80 33,768 32,905 58,425 56,283 92,271 89,268 Corporate debt securities 2,008 1,994 3,007 2,862 — — — — 5,015 4,856 Total available for sale securities $ 12,012 $ 11,940 $ 68,085 $ 67,035 $ 33,768 $ 32,905 $ 58,425 $ 56,283 $ 172,290 $ 168,163 Held to maturity securities U.S. GSE obligations $ 5,001 $ 4,991 $ 27,570 $ 27,342 $ — $ — $ — $ — $ 32,571 $ 32,333 Mortgage-backed securities 50 51 — — 34,434 33,958 133,634 131,953 168,118 165,962 Corporate debt securities — — 6,972 6,865 — — — — 6,972 6,865 Municipal securities 4,630 4,654 13,259 13,427 41,390 42,273 15,929 15,796 75,208 76,150 Total held to maturity securities $ 9,681 $ 9,696 $ 47,801 $ 47,634 $ 75,824 $ 76,231 $ 149,563 $ 147,749 $ 282,869 $ 281,310 Total $ 21,693 $ 21,636 $ 115,886 $ 114,669 $ 109,592 $ 109,136 $ 207,988 $ 204,032 $ 455,159 $ 449,473 The following tables show the Company’s securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position: December 31, 2018 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (dollars in thousands) Temporarily Impaired Securities Available for sale securities U.S. GSE obligations $ — $ — $ 74,039 $ (965 ) $ 74,039 $ (965 ) Mortgage-backed securities — — 86,815 (3,121 ) 86,815 (3,121 ) Corporate debt securities 902 (98 ) 3,954 (61 ) 4,856 (159 ) Total available for sale securities $ 902 $ (98 ) $ 164,808 $ (4,147 ) $ 165,710 $ (4,245 ) Held to maturity securities U.S. GSE obligations $ 4,995 $ (5 ) $ 27,338 $ (233 ) $ 32,333 $ (238 ) Mortgage-backed securities 30,719 (216 ) 93,225 (2,074 ) 123,944 (2,290 ) Corporate debt securities 6,865 (107 ) — — 6,865 (107 ) Municipal securities 8,484 (82 ) 8,313 (273 ) 16,797 (355 ) Total held to maturity securities $ 51,063 $ (410 ) $ 128,876 $ (2,580 ) $ 179,939 $ (2,990 ) Total temporarily impaired securities $ 51,965 $ (508 ) $ 293,684 $ (6,727 ) $ 345,649 $ (7,235 ) December 31, 2017 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (dollars in thousands) Temporarily Impaired Securities Available for sale securities U.S. GSE obligations $ 4,979 $ (21 ) $ 83,812 $ (1,209 ) $ 88,791 $ (1,230 ) Mortgage-backed securities 12,526 (157 ) 94,663 (2,649 ) 107,189 (2,806 ) Corporate debt securities — — 3,990 (45 ) 3,990 (45 ) Mutual funds — — 599 (73 ) 599 (73 ) Total available for sale securities $ 17,505 $ (178 ) $ 183,064 $ (3,976 ) $ 200,569 $ (4,154 ) Held to maturity securities U.S. GSE obligations $ 27,407 $ (166 ) $ — $ — $ 27,407 $ (166 ) Mortgage-backed securities 115,926 (906 ) 3 — 115,929 (906 ) Corporate debt securities — — — — — — Municipal securities 2,041 (19 ) 6,459 (98 ) 8,500 (117 ) Total held to maturity securities $ 145,374 $ (1,091 ) $ 6,462 $ (98 ) $ 151,836 $ (1,189 ) Total temporarily impaired securities $ 162,879 $ (1,269 ) $ 189,526 $ (4,074 ) $ 352,405 $ (5,343 ) Securities are evaluated by management for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. Consideration is given to: (1) the length of time and the extent to which the fair value has been less than cost; (2) the financial condition and near-term prospects of the issuer; and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. As of December 31, 2018, 142 debt securities had gross unrealized losses, with an aggregate depreciation of 2.05% from the Company’s amortized cost basis. The largest unrealized loss percentage of any single security was 9.79%, or $98,000, of its amortized cost. The largest unrealized dollar loss of any single security was $189,000, or 5.34%, of its amortized cost. As of December 31, 2017, 118 debt securities and one equity security had gross unrealized losses, with an aggregate depreciation of 1.49% from the Company’s amortized cost basis. The largest unrealized loss percentage of any single security was 10.90%, or $73,000, of its amortized cost. The largest unrealized dollar loss of any single security was $185,000, or 3.71%, of its amortized cost. The Company believes that the nature and duration of impairment on its debt security positions are primarily a function of interest rate movements and changes in investment spreads and does not consider full repayment of principal on the reported debt obligations to be at risk. Since nearly all of these securities are rated “investment grade” and a) the Company does not intend to sell these securities before recovery and b) that it is more likely than not that the Company will not be required to sell these securities before recovery, the Company does not consider these securities to be other-than-temporarily impaired as of December 31, 2018 and 2017. The following table sets forth information regarding sales of investment securities and the resulting gains or losses from such sales: For the Year Ended December 31, 2018 2017 2016 (dollars in thousands) Amortized cost of securities sold $ 700 $ 77,372 $ 17,632 Gain/(loss) realized on securities sold 2 (3 ) 438 Net proceeds from securities sold $ 702 $ 77,369 $ 18,070 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | 6. LOANS AND ALLOWANCE FOR LOAN LOSSES The Company’s lending activities are conducted primarily in Eastern Massachusetts. The Company grants single- and multi-family residential loans, commercial & industrial (“C&I), commercial real estate (“CRE”), construction loans, and a variety of consumer loans. Most of the loans granted by the Company are secured by real estate collateral. Repayment of the Company’s residential loans are generally dependent on the health of the employment market in the borrowers’ geographic areas and that of the general economy with liquidation of the underlying real estate collateral being typically viewed as the primary source of repayment in the event of borrower default. The repayment of C&I loans depends primarily on the cash flow and credit worthiness of the borrower and secondarily on the underlying collateral provided by the borrower. As borrower cash flow may be difficult to predict, liquidation of the underlying collateral securing these loans is typically viewed as the primary source of repayment in the event of borrower default. However, collateral typically consists of equipment, inventory, accounts receivable, or other business assets that may fluctuate in value, so the liquidation of collateral in the event of default is often an insufficient source of repayment. The Company’s CRE loans are primarily made based on the cash flow from the collateral property and secondarily on the underlying collateral provided by the borrower, with liquidation of the underlying real estate collateral typically being viewed as the primary source of repayment in the event of borrower default. The Company’s construction loans are primarily made based on the borrower’s expected ability to execute and the future completed value of the collateral property, with sale of the underlying real estate collateral typically being viewed as the primary source of repayment. Loans outstanding are detailed by category as follows: December 31, 2018 December 31, 2017 (dollars in thousands) Residential mortgage Mortgages - fixed rate $ 293,267 $ 298,851 Mortgages - adjustable rate 309,656 239,027 Deferred costs net of unearned fees 1,408 1,042 Total residential mortgages 604,331 538,920 Commercial mortgage Mortgages - nonowner occupied 654,394 562,203 Mortgages - owner occupied 59,335 35,343 Construction 44,146 35,904 Deferred costs net of unearned fees 82 199 Total commercial mortgages 757,957 633,649 Home equity Home equity - lines of credit 63,421 70,326 Home equity - term loans 5,665 3,863 Deferred costs net of unearned fees 250 255 Total home equity 69,336 74,444 Commercial & industrial Commercial & industrial 93,728 65,305 Deferred costs (fees) net of unearned fees (16 ) (10 ) Total commercial & industrial 93,712 65,295 Consumer Secured 33,252 37,272 Unsecured 1,171 1,303 Deferred costs net of unearned fees 13 16 Total consumer 34,436 38,591 Total loans $ 1,559,772 $ 1,350,899 Directors and officers of the Company and their associates are customers of, and have other transactions with, the Company in the normal course of business. All loans and commitments included in such transactions were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons and do not involve more than normal risk of collection or present other unfavorable features. At December 31, 2018 and December 31, 2017, total loans outstanding to such directors and officers were $488,000 and $516,000, respectively. During the year ended December 31, 2018, $139,000 of additions and $167,000 of repayments were made to these loans. There were $124,000 of additions and $298,000 of repayments during the year ended December 31, 2017. At December 31, 2018 and 2017, all of the loans to directors and officers were performing according to their original terms. The following tables set forth information regarding non-performing loans disaggregated by loan category: December 31, 2018 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Total (dollars in thousands) Non-performing loans: Non-accrual loans $ 512 $ — $ 13 $ — $ — $ 525 Loans past due >90 days, but still accruing — — — — — — Troubled debt restructurings 111 — — 6 — 117 Total $ 623 $ — $ 13 $ 6 $ — $ 642 December 31, 2017 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Total (dollars in thousands) Non-performing loans: Non-accrual loans $ 918 $ 213 $ 17 $ — $ — $ 1,148 Loans past due >90 days, but still accruing — — — — — — Troubled debt restructurings 121 — — 29 — 150 Total $ 1,039 $ 213 $ 17 $ 29 $ — $ 1,298 Troubled Debt Restructurings (“TDRs”) Loans are considered restructured in a troubled debt restructuring when the Company has granted concessions to a borrower due to the borrower’s financial condition that it otherwise would not have considered. These concessions may include modifications of the terms of the debt such as deferral of payments, extension of maturity, reduction of principal balance, reduction of the stated interest rate other than normal market rate adjustments, or a combination of these concessions. Debt may be bifurcated with separate terms for each tranche of the restructured debt. Restructuring a loan in lieu of aggressively enforcing the collection of the loan may benefit the Company by increasing the ultimate probability of collection. Restructured loans are classified as accruing or non-accruing based on management’s assessment of the collectability of the loan. Loans which are already on nonaccrual status at the time of the restructuring generally remain on nonaccrual status for approximately six months or longer before management considers such loans for return to accruing status. Accruing restructured loans are placed into nonaccrual status if and when the borrower fails to comply with the restructured terms and management deems it unlikely that the borrower will return to a status of compliance in the near term. Troubled debt restructurings are classified as impaired loans. The Company identifies loss allocations for impaired loans on an individual loan basis. There were no new TDRs during the year ended December 31, 2018. At December 31, 2018, three loans were determined to be TDRs with a total carrying value of $117,000. There were no TDR defaults during the year ended December 31, 2018. During the year ended December 31, 2017, the Company modified five loans with a pre-modification carrying value (which consists of the unpaid principal balance, net of charge-offs and unamortized deferred loan origination fees and costs, at the time of the restructuring) of $65,000 and a post-modification carrying value of $48,000. At December 31, 2017, these loans had a carrying value of $29,000. As of December 31, 2017 three loans were determined to be TDRs with a total carrying value of $150,000. Two loans designated as TDRs were charged-off during the fourth quarter of 2017. There were no TDR defaults during the year ended December 31, 2017. There were no specific reserves for these troubled debt restructurings at December 31, 2018 and 2017, respectively. As of December 31, 2018 and 2017, there were no significant commitments to lend additional funds to borrowers whose loans were restructured. Loans by Credit Quality Indicator. The following tables contain period-end balances of loans receivable disaggregated by credit quality indicator: December 31, 2018 Residential Mortgages Home Equity Consumer (dollars in thousands) Credit risk profile based on payment activity: Performing $ 603,708 $ 69,323 $ 34,436 Non-performing 623 13 — Total $ 604,331 $ 69,336 $ 34,436 Commercial Mortgages Commercial & Industrial Credit risk profile by internally assigned grade: 1-6 (Pass) $ 753,338 $ 85,821 7 (Special Mention) 4,619 4,186 8 (Substandard) — 3,705 9 (Doubtful) — — 10 (Loss) — — Total $ 757,957 $ 93,712 December 31, 2017 Residential Mortgages Home Equity Consumer (dollars in thousands) Credit risk profile based on payment activity: Performing $ 537,881 $ 74,427 $ 38,591 Non-performing 1,039 17 — Total $ 538,920 $ 74,444 $ 38,591 Commercial Mortgages Commercial & Industrial Credit risk profile by internally assigned grade: 1-6 (Pass) $ 629,852 $ 56,755 7 (Special Mention) 3,584 8,126 8 (Substandard) 213 414 9 (Doubtful) — — 10 (Loss) — — Total $ 633,649 $ 65,295 With respect to residential real estate mortgages, home equity, and consumer loans, the Bank utilizes the following categories as indicators of credit quality: • Performing – These loans are accruing and are considered having low to moderate risk. • Non-performing – These loans have are on non-accrual, or are past due more than 90 days but are still accruing, or are restructured. These loans may contain greater than average risk. With respect to commercial real estate mortgages and commercial loans, the Bank utilizes a 10 grade internal loan rating system as an indicator of credit quality. The grades are as follows: • Loans rated 1-6 (Pass) – These loans are considered “pass” rated with low to moderate risk. • Loans rated 7 (Special Mention) – These loans have potential weaknesses warranting close attention, which, if left uncorrected, may result in deterioration of the credit at some future date. • Loans rated 8 (Substandard) – These loans have well-defined weaknesses that jeopardize the orderly liquidation of the debt under the original loan terms. Loss potential exists but is not identifiable in any one customer. • Loans rated 9 (Doubtful) – These loans have pronounced weaknesses that make full collection highly questionable and improbable. • Loans rated 10 (Loss) – These loans are considered uncollectible and continuance as a bankable asset is not warranted. Delinquencies The past due status of a loan is determined in accordance with its contractual repayment terms. All loan types are reported past due when one scheduled payment is due and unpaid for 30 days or more. Loan delinquencies can be attributed to many factors, such as but not limited to, a continuing weakness in, or deteriorating, economic conditions in the region in which the collateral is located, the loss of a tenant or lower lease rates for commercial borrowers, or the loss of income for consumers and the resulting liquidity impacts on the borrowers. The following tables contain period-end balances of loans receivable disaggregated by past due status: December 31, 2018 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Total Past Due Current Loans Total (dollars in thousands) Residential Mortgages $ 1,034 $ 121 $ 351 $ 1,506 $ 602,825 $ 604,331 Commercial Mortgages — — — — 757,957 757,957 Home Equity — — — — 69,336 69,336 Commercial & Industrial — — — — 93,712 93,712 Consumer loans 108 — — 108 34,328 34,436 Total $ 1,142 $ 121 $ 351 $ 1,614 $ 1,558,158 $ 1,559,772 December 31, 2017 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Total Past Due Current Loans Total (dollars in thousands) Residential Mortgages $ 1,353 $ 706 $ 64 $ 2,123 $ 536,797 $ 538,920 Commercial Mortgages — 32 — 32 633,617 633,649 Home Equity 1 — 17 18 74,426 74,444 Commercial & Industrial — — — — 65,295 65,295 Consumer loans 176 — — 176 38,415 38,591 Total $ 1,530 $ 738 $ 81 $ 2,349 $ 1,348,550 $ 1,350,899 As of December 31, 2018 and 2017, loans secured by one- to four-family residential property amounting to $351,000 and $64,000, respectively, were in process of foreclosure. There were no significant commitments to lend additional funds to borrowers whose loans were on nonaccrual status at December 31, 2018. Impaired Loans Impaired loans are loans for which it is probable that the Company will not be able to collect all amounts due according to the contractual terms of the loan agreements and loans restructured in a troubled debt restructuring. The recorded investment in impaired loans consists of unpaid principal balance, net of charge-offs, interest payments received applied to principal, and unamortized deferred loan origination fees and costs. The following is information pertaining to impaired loans: For the Year Ended December 31, 2018 Carrying Value Average Carrying Value Unpaid Principal Balance Related Allowance Interest Income Recognized (dollars in thousands) With no required reserve recorded: Commercial and industrial $ 6 $ 17 $ 6 $ — $ 1 Commercial mortgage — — — — — Residential mortgage 634 647 786 — 4 Home equity 100 104 135 — 1 Total 740 768 927 — 6 With required reserve recorded: Commercial and industrial — — — — — Commercial mortgage — — — — — Residential mortgage — — — — — Home equity — — — — — Total — — — — — Total: Commercial and industrial 6 17 6 — 1 Commercial mortgage — — — — — Residential mortgage 634 647 786 — 4 Home equity 100 104 135 — 1 Total $ 740 $ 768 $ 927 $ — $ 6 For the Year Ended December 31, 2017 Carrying Value Average Carrying Value Unpaid Principal Balance Related Allowance Interest Income Recognized (dollars in thousands) With no required reserve recorded: Commercial and industrial $ 29 $ 36 $ 29 $ — $ 2 Commercial mortgage 213 224 227 — 3 Residential mortgage 904 931 1,103 — — Home equity 86 91 116 — — Total 1,232 1,282 1,475 — 5 With required reserve recorded: Commercial and industrial — — — — — Commercial mortgage — — — — — Residential mortgage 64 66 64 93 1 Home equity — — — — — Total 64 66 64 93 1 Total: Commercial and industrial 29 36 29 — 2 Commercial mortgage 213 224 227 — 3 Residential mortgage 968 997 1,167 93 1 Home equity 86 91 116 — — Total $ 1,296 $ 1,348 $ 1,539 $ 93 $ 6 For the Year Ended December 31, 2016 Carrying Value Average Carrying Value Unpaid Principal Balance Related Allowance Interest Income Recognized (dollars in thousands) With no required reserve recorded: Commercial and industrial $ — $ — $ — $ — $ — Commercial mortgage — — — — — Residential mortgage 528 542 687 — — Home equity 102 105 126 — 1 Total 630 647 813 — 1 With required reserve recorded: Commercial and industrial 289 297 295 114 2 Commercial mortgage — — — — — Residential mortgage 499 505 509 76 21 Home equity — — — — — Total 788 802 804 190 23 Total: Commercial and industrial 289 297 295 114 2 Commercial mortgage — — — — — Residential mortgage 1,027 1,047 1,196 76 21 Home equity 102 105 126 — 1 Total $ 1,418 $ 1,449 $ 1,617 $ 190 $ 24 Allowance for Loan Losses The Company maintains an allowance for loan losses in an amount determined by management on the basis of the character of the loans, loan performance, financial condition of borrowers, the value of collateral securing loans, and other relevant factors. We provide for loan losses based upon the consistent application of our documented allowance for loan loss methodology. All loan losses are charged to the allowance for loan losses and all recoveries are credited to it. Additions to the allowance for loan losses are provided by charges to income based on various factors which, in our judgment, deserve current recognition in estimating probable losses. We regularly review the loan portfolio, including a review of our classified assets, and make provisions for loan losses in order to maintain the allowance for loan losses in accordance with GAAP. The allowance for loan losses consists primarily of two components: 1. Specific allowances established for impaired loans, as defined by GAAP. The amount of impairment provided for as a specific allowance is measured based on the deficiency, if any, between the present value of expected future cash flows discounted at the loan’s effective interest rate at the time of impairment or, as a practical expedient, at the loan’s observable market price, or the fair value of the collateral if the loan is collateral-dependent, and the carrying value of the loan; and 2. General allowances established for loan losses on a portfolio basis for loans that do not meet the definition of impaired loans. The portfolio is grouped into homogenous pools by similar risk characteristics, primarily by loan type and regulatory classification. We apply an estimated incurred loss rate to each loan group. The loss rates applied are based upon our historical loss experience over a designated look back period adjusted, as appropriate, for the quantitative, qualitative, and environmental factors discussed below. This evaluation is inherently subjective, as it requires material estimates that may be susceptible to significant revisions based upon changes in economic and real estate market conditions. Actual loan losses may be significantly more than the allowance for loan losses we have established, which could have a material negative effect on our financial results. The adjustments to historical loss experience are based on our evaluation of several quantitative, qualitative, and environmental factors, including: • the loss emergence period, which represents the average amount of time between when loss events occur for specific loan types and when such problem loans are identified and the related loss amounts are confirmed through charge-offs; • changes in any concentration of credit (including, but not limited to, concentrations by geography, industry, or collateral type); • changes in the number and amount of non-accrual loans and past due loans; • changes in national, state, and local economic trends; • changes in the types of loans in the loan portfolio; • changes in the experience and ability of personnel; • changes in lending strategies; and • changes in lending policies and procedures. In addition, we may establish an unallocated allowance to provide for probable losses that have been incurred as of the reporting date but are not reflected in the allocated allowance. We evaluate the allowance for loan losses based upon the combined total of the specific and general components. Generally, when the loan portfolio increases, absent other factors, the allowance for loan loss methodology results in a higher dollar amount of estimated probable losses than would be the case without the increase. Generally, when the loan portfolio decreases, absent other factors, the allowance for loan losses methodology results in a lower dollar amount of estimated probable losses than would be the case without the decrease. Periodically, management conducts an analysis to estimate the loss emergence period for various loan categories based on samples of historical charge-offs. Model output by loan category is reviewed to evaluate the reasonableness of the reserve levels in comparison to the estimated loss emergence period applied to historical loss experience. We evaluate the loan portfolio on a quarterly basis and the allowance is adjusted accordingly. While we use the best information available to make evaluations, future adjustments to the allowance may be necessary if conditions differ substantially from the information used in making the evaluations. In addition, various regulatory agencies, as an integral part of their examination process, will periodically review the allowance for loan losses. Such agencies may require us to recognize additions to the allowance based on their analysis of information available to them at the time of their examination. The following tables contain changes in the allowance for loan losses disaggregated by loan type for the periods noted: For the Year Ended December 31, 2018 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Impaired Total (dollars in thousands) Allowance for loan losses: Balance at December 31, 2017 $ 5,047 $ 8,289 $ 630 $ 946 $ 315 $ 93 $ 15,320 Charge-offs — — — (73 ) (36 ) — (109 ) Recoveries — — — 48 7 — 55 Provision for (Release of) (101 ) 1,337 (113 ) 494 (22 ) (93 ) 1,502 Balance at December 31, 2018 $ 4,946 $ 9,626 $ 517 $ 1,415 $ 264 $ — $ 16,768 For the Year Ended December 31, 2017 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Impaired Total (dollars in thousands) Allowance for loan losses: Balance at December 31, 2016 $ 4,898 $ 8,451 $ 651 $ 807 $ 264 $ 190 $ 15,261 Charge-offs — — — (284 ) (39 ) — (323 ) Recoveries — — — 13 7 — 20 Provision for (Release of) 149 (162 ) (21 ) 410 83 (97 ) 362 Balance at December 31, 2017 $ 5,047 $ 8,289 $ 630 $ 946 $ 315 $ 93 $ 15,320 For the Year Ended December 31, 2016 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Unallocated Impaired Total (dollars in thousands) Allowance for loan losses: Balance at December 31, 2015 $ 5,244 $ 8,094 $ 699 $ 615 $ 354 $ 11 $ 174 $ 15,191 Change in methodology 336 (377 ) (3 ) 136 (92 ) — — — Charge-offs — — — (71 ) (33 ) — — (104 ) Recoveries 13 7 1 14 7 — — 42 Provision for (Release of) (695 ) 727 (46 ) 113 28 (11 ) 16 132 Balance at December 31, 2016 $ 4,898 $ 8,451 $ 651 $ 807 $ 264 $ — $ 190 $ 15,261 The following tables contain period-end balances of the allowance for loan losses and related loans receivable disaggregated by impairment method: December 31, 2018 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Total (dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 4,945 9,626 517 1,415 265 16,768 Total $ 4,945 $ 9,626 $ 517 $ 1,415 $ 265 $ 16,768 Loans receivable Individually evaluated for impairment $ 647 $ — $ 88 $ 5 $ — $ 740 Collectively evaluated for impairment 603,684 757,957 69,248 93,707 34,436 1,559,032 Total $ 604,331 $ 757,957 $ 69,336 $ 93,712 $ 34,436 $ 1,559,772 December 31, 2017 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Total (dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 93 $ — $ — $ — $ — $ 93 Collectively evaluated for impairment 5,047 8,289 630 946 315 15,227 Total $ 5,140 $ 8,289 $ 630 $ 946 $ 315 $ 15,320 Loans receivable Individually evaluated for impairment $ 968 $ 213 $ 86 $ 29 $ — $ 1,296 Collectively evaluated for impairment 537,952 633,436 74,358 65,266 38,591 1,349,603 Total $ 538,920 $ 633,649 $ 74,444 $ 65,295 $ 38,591 $ 1,350,899 As discussed in Note 2, Summary of Significant Accounting Policies |
Federal Home Loan Bank of Bosto
Federal Home Loan Bank of Boston Stock | 12 Months Ended |
Dec. 31, 2018 | |
Federal Home Loan Bank of Boston | |
Federal Home Loan Bank Stock [Line Items] | |
Federal Home Loan Bank of Boston Stock | 7. FEDERAL HOME LOAN BANK OF BOSTON STOCK As a voluntary member of the FHLB of Boston, the Bank is required to invest in stock of the FHLB of Boston (which is considered a restricted equity security) in an amount based upon its outstanding advances from the FHLB of Boston. At December 31, 2018 and December 31, 2017, the Bank’s investment in FHLB of Boston stock totaled $6.8 million and $4.2 million, respectively. No market exists for shares of this stock. The Bank’s cost for FHLB of Boston stock is equal to its par value. Upon redemption of the stock, which is at the discretion of the FHLB of Boston, the Bank would receive an amount equal to the par value of the stock. At its discretion, the FHLB of Boston may also declare dividends on its stock. The Bank’s investment in FHLB of Boston stock is reviewed for impairment at each reporting date based on the ultimate recoverability of the cost basis of the stock. As of December 31, 2018 and December 31, 2017, no impairment has been recognized. |
Banking Premises and Equipment
Banking Premises and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Banking Premises and Equipment | 8. BANKING PREMISES AND EQUIPMENT A summary of the cost and accumulated depreciation and amortization of property, leasehold improvements, and equipment is presented below: December 31, Estimated 2018 2017 Useful Lives (dollars in thousands) Land $ 1,116 $ 1,116 Building and leasehold improvements 12,175 12,839 3-30 years Equipment, including vaults 11,613 11,185 3-20 years Work in process 84 9 Subtotal 24,988 25,149 Accumulated depreciation and amortization (16,410 ) (15,839 ) Total $ 8,578 $ 9,310 Total depreciation expense for the years ended December 31, 2018, 2017, and 2016 amounted to approximately $1.9 million, $1.9 million and $2.1 million, respectively, and is included in occupancy and equipment expenses in the accompanying consolidated statements of income. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 9. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill. At December 31, 2018 and 2017, the carrying value of goodwill, which is included in other assets, totaled $412,000. Goodwill is tested for impairment, based on its fair value, at least annually. As of December 31, 2018 and 2017, no goodwill impairment has been recognized. Mortgage servicing rights. Periodically, the Company sells certain residential mortgage loans to the secondary market. Generally, these loans are sold without recourse or other credit enhancements. The Company did not have any loans held for sale at December 31, 2018 and December 31, 2017. The Company sells loans and either releases or retains the servicing rights. For loans sold with servicing rights retained, we provide the servicing for the loans on a per-loan fee basis. Mortgage loans sold and servicing rights retained during the years ended December 31, 2018, 2017, and 2016 were $1.6 million, $11.9 million, and $50.0 million, respectively, with net gains recognized in gain on loans held for sale of $36,000, $182,000, and $998,000, respectively. An analysis of mortgage servicing rights, which are included in other assets, follows: Mortgage Servicing Rights Valuation Allowance Total (dollars in thousands) Balance at December 31, 2015 $ 499 $ (8 ) $ 491 Mortgage servicing rights capitalized 545 — 545 Amortization charged against servicing income (202 ) — (202 ) Change in impairment reserve — (22 ) (22 ) Balance at December 31, 2016 $ 842 $ (30 ) $ 812 Mortgage servicing rights capitalized 132 — 132 Amortization charged against servicing income (151 ) — (151 ) Change in impairment reserve — — — Balance at December 31, 2017 $ 823 $ (30 ) $ 793 Mortgage servicing rights capitalized 20 — 20 Amortization charged against servicing income (147 ) — (147 ) Change in impairment reserve (30 ) 30 — Balance at December 31, 2018 $ 666 $ — $ 666 The fair value of our mortgage servicing rights (“MSR”) portfolio was $1.0 million as of December 31, 2018 and 2017. The fair value of mortgage servicing rights is estimated based on the present value of expected cash flows, incorporating assumptions for discount rate, prepayment speed, and servicing cost. The weighted-average amortization period for mortgage servicing rights portfolio was 7.5 years and 7.3 years at December 31, 2018 and December 31, 2017, respectively. The estimated aggregate future amortization expense for mortgage servicing rights for each of the next five years and thereafter is as follows: Year ended December 31: Future Amortization Expense (dollars in thousands) 2019 $ 84 2020 75 2021 67 2022 59 2023 52 Thereafter 329 Total $ 666 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Deposit | 10. DEPOSITS Deposits are summarized as follows: December 31, 2018 December 31, 2017 (dollars in thousands) Demand deposits (non-interest bearing) $ 494,492 $ 493,613 Interest bearing checking 431,702 462,957 Money market 135,585 69,259 Savings 628,212 589,741 Retail certificates of deposit under $100,000 36,223 38,068 Retail certificates of deposit $100,000 or greater 57,692 69,093 Wholesale certificates of deposit 27,504 52,669 Total deposits $ 1,811,410 $ 1,775,400 Certificates of deposit had the following schedule of maturities: December 31, 2018 December 31, 2017 (dollars in thousands) Less than 3 months remaining $ 24,219 $ 40,716 3 to 5 months remaining 17,486 19,107 6 to 11 months remaining 37,987 30,545 12 to 23 months remaining 28,529 42,421 24 to 47 months remaining 9,652 20,017 48 months or more remaining 3,546 7,024 Total certificates of deposit $ 121,419 $ 159,830 Interest expense on retail certificates of deposit $100,000 or greater was $467,000, $446,000, and $475,000 for the years ended December 31, 2018, 2017, and 2016, respectively. The aggregate amount of certificates of deposit in denominations that meet or exceed the FDIC insurance limit of $250,000 at December 31, 2018 and 2017 was $31.8 million and $44.7 million, respectively. Related Party Deposits Deposit accounts of directors, executive officers, and their respective affiliates totaled $6.8 million and $3.1 million as of December 31, 2018 and 2017, respectively. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings | 11. BORROWINGS Information relating to short-term borrowings is presented below: For the Year Ended December 31, 2018 2017 (dollars in thousands) FHLB of Boston short-term advances Ending balance $ 90,000 $ — Average daily balance 15,183 32,418 Highest month-end balance 90,000 110,000 Weighted average interest rate 2.47 % 1.21 % Information relating to long-term borrowings is presented below: December 31, 2018 December 31, 2017 Amount Rate Amount Rate (dollars in thousands) FHLB of Boston long-term advances Due 09/01/2020; amortizing $ 3,409 1.94 % $ 3,579 1.94 % All short- and long-term borrowings with the FHLB of Boston are secured by the Bank’s stock in the FHLB of Boston and a blanket lien on “qualified collateral” defined principally as 90% of the market value of certain U.S. Government and GSE obligations and 75% of the carrying value of certain residential mortgage loans. Based upon collateral pledged, the Bank’s unused borrowing capacity with the FHLB of Boston at December 31, 2018 was approximately $320.1 million. The Bank also has a line of credit with the FRB Boston. At December 31, 2018 and 2017, the Bank had pledged commercial real estate and commercial & industrial loans with aggregate principal balances of approximately $291.7 million and $287.6 million, respectively, as collateral for this line of credit. Based upon the collateral pledged, the Bank’s unused borrowing capacity with the FRB Boston at December 31, 2018 and 2017 was approximately $167.5 million and $158.0 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. INCOME TAXES In accordance with the Tax Cuts and Jobs Act of 2017, the Company’s statutory federal tax rate decreased from 35% to 21% effective January 1, 2018. The change in tax law required a one-time non-cash write down of our net deferred tax assets of $3.9 million in 2017. The components of income tax expense were as follows: For the Year Ended December 31, 2018 2017 2016 (dollars in thousands) Current Federal $ 5,524 $ 8,446 $ 7,551 State 2,404 2,225 1,833 Total current expense 7,928 10,671 9,384 Deferred Federal (490 ) 2,948 (645 ) State (231 ) (261 ) (183 ) Total deferred (721 ) 2,687 (828 ) Total income tax expense $ 7,207 $ 13,358 $ 8,556 The following is a reconciliation of the total income tax provision, calculated at statutory federal income tax rates, to the income tax provision in the consolidated statements of income: For the Year Ended December 31, 2018 Rate 2017 Rate 2016 Rate (dollars in thousands) Provision at statutory rates $ 6,528 21.00 % $ 9,861 35.00 % $ 8,908 35.00 % Increase/(decrease) resulting from: State tax, net of federal tax benefit 1,717 5.52 1,277 4.53 1,073 4.22 Tax-exempt income (580 ) (1.87 ) (1,079 ) (3.83 ) (1,099 ) (4.32 ) ESOP dividends (127 ) (0.41 ) (216 ) (0.77 ) (214 ) (0.84 ) Bank owned life insurance (140 ) (0.45 ) (205 ) (0.73 ) (214 ) (0.84 ) Benefit from stock compensation (168 ) (0.54 ) (190 ) (0.67 ) — — Impact of Tax Cuts and Jobs Act — — 3,870 13.74 — — Other (23 ) (0.07 ) 40 0.15 102 0.40 Total income tax expense $ 7,207 23.18 % $ 13,358 47.42 % $ 8,556 33.62 % The Company’s 2018 and 2017 net deferred tax assets were measured using 21% and consisted of the following components: December 31, 2018 December 31, 2017 (dollars in thousands) Gross deferred tax assets Allowance for loan losses $ 4,715 $ 4,306 Accrued retirement benefits 2,082 2,430 Unrealized losses on AFS securities 957 905 Incentive compensation 1,189 1,082 Equity based compensation 849 351 Rent 333 266 ESOP dividends 169 174 Other 155 164 Total gross deferred tax assets 10,449 9,678 Gross deferred tax liabilities Deferred loan origination costs (459 ) (401 ) Depreciation of premises and equipment (678 ) (667 ) Mortgage servicing rights (187 ) (223 ) Goodwill (114 ) (114 ) Derivative transactions (294 ) — Total gross deferred tax liabilities (1,732 ) (1,405 ) Net deferred tax asset $ 8,717 $ 8,273 It is management’s belief, that it is more likely than not, that the reversal of deferred tax liabilities and results of future operations will generate sufficient taxable income to realize the deferred tax assets. Therefore, no valuation allowance was required at either December 31, 2018 and 2017 for the deferred tax assets. It should be noted, however, that factors beyond management’s control, such as the general state of the economy and real estate values, can affect future levels of taxable income and that no assurance can be given that sufficient taxable income will be generated in future periods to fully absorb deductible temporary differences. At December 31, 2018 and 2017, the Company had no unrecognized tax benefits or any uncertain tax positions. The Company does not expect the total amount of unrecognized tax benefits to significantly increase in the next 12 months. The Company’s federal income tax returns are open and subject to examination from the 2015 tax return year and forward. The Company’s state income tax returns are open from the 2015 and later tax return years based on individual state statute of limitations. On January 1, 2017, The Company adopted Accounting Standards Update No. 2016-09 - “ Improvements to Employee Share-Based Payment Accounting |
Pension and Retirement Plans
Pension and Retirement Plans | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension and Retirement Plans | 13. PENSION AND RETIREMENT PLANS The Company has a noncontributory, defined benefit pension plan (“Pension Plan”) covering substantially all employees hired before May 2, 2011. Employees in positions requiring at least 1,000 hours of service per year were eligible to participate upon the attainment of age 21 and the completion of 12 months of service. Benefits are based primarily on years of service and the employee’s average monthly pay during the five highest consecutive plan years of the employee’s final ten years. On October 23, 2017, the Company announced its decision to freeze the accrual of benefits within the Pension Plan, effective December 31, 2017. The Company also provides supplemental retirement benefits to certain current and former executive officers of the Company under the terms of Supplemental Executive Retirement Agreements (“Supplemental Retirement Plan”). Prior to 2016, the Company provided individual non-qualified defined benefit supplemental executive retirement plans (“DB SERPs”) to certain executives. The DB SERPs generally provide for an annual benefit payable in equal monthly installments following the executive’s retirement and continuing for at least the remainder of his or her lifetime, with such annual benefit generally based on the executive’s years of service and his or her highest three consecutive years of base salary and bonus. In 2016, the Company’s Board discontinued the use of DB SERPs for new entrants to the Company’s non-qualified retirement programs. Instead, new entrants are provided with individual non-qualified defined contribution supplemental executive retirement plans (“DC SERPs”). Under the DC SERPs, the Company contributes an amount equal to 10% of the executive’s base salary and bonus to his or her account under the Company’s non-qualified deferred compensation plan, the Executive Deferred Compensation Plan. The Company also offers postretirement health care benefits for current and future retirees of the Bank. Certain employees receive a fixed monthly benefit at age 65 toward the purchase of postretirement medical coverage. The benefit received is based on the employee’s years of active service. The Company uses a December 31 measurement date each year to determine the benefit obligations for these plans. Projected benefit obligations and funded status were as follows: Pension Plan Supplemental Retirement Plan 2018 2017 2018 2017 (dollars in thousands) Change in projected benefit obligation Obligation at beginning of year $ 43,943 $ 43,915 $ 9,204 $ 8,891 Service cost — 1,500 354 267 Interest cost 1,557 1,826 309 364 Effect of curtailment — (7,366 ) — — Actuarial loss/(gain) (3,659 ) 5,313 (499 ) 182 Benefits paid (1,319 ) (1,245 ) (538 ) (500 ) Obligation at end of year 40,522 43,943 8,830 9,204 Change in plan assets Fair value at beginning of year 45,247 39,821 — — Actual return on plan assets (1,280 ) 6,671 — — Employer contribution — — 538 500 Benefits paid (1,319 ) (1,245 ) (538 ) (500 ) Fair value at end of year 42,648 45,247 — — Funded status at end of year $ 2,126 $ 1,304 $ (8,830 ) $ (9,204 ) Amounts recognized in the consolidated balance sheets consisted of: Pension Plan Supplemental Retirement Plan 2018 2017 2018 2017 (dollars in thousands) Other assets/(liabilities) $ 2,126 $ 1,304 $ (8,830 ) $ (9,204 ) Amounts recognized in accumulated other comprehensive loss consisted of: Pension Plan Supplemental Retirement Plan 2018 2017 2018 2017 (dollars in thousands) Net actuarial loss/(gain) $ 5,427 $ 5,021 $ 358 $ 861 Prior service (benefit) (12 ) (16 ) — — Total $ 5,415 $ 5,005 $ 358 $ 861 Certain disaggregated information related to our retirement plans were as follows: Pension Plan Supplemental Retirement Plan 2018 2017 2018 2017 (dollars in thousands) Projected benefit obligation $ 40,522 $ 43,943 $ 8,830 $ 9,204 Accumulated benefit obligation 40,522 43,943 8,567 9,028 Fair value of plan assets 42,648 45,247 — — Funded status at end of year 2,126 1,304 (8,830 ) (9,204 ) The components of net periodic benefit cost and amounts recognized in other comprehensive income/ (loss) were as follows: Pension Plan Supplemental Retirement Plan 2018 2017 2018 2017 (dollars in thousands) Net periodic benefit cost Service cost $ — $ 1,500 $ 354 $ 267 Interest cost 1,557 1,826 309 364 Expected return on assets (2,891 ) (2,741 ) — — Amortization of prior service credit (4 ) (4 ) — — Amortization of net actuarial loss/(gain) 106 794 4 — Net periodic benefit cost (1,232 ) 1,375 667 631 Amounts recognized in other comprehensive income/( loss) Net actuarial loss/(gain) 512 1,383 (499 ) 182 Amortization of prior service credit 4 4 (4 ) — Amortization of net actuarial gain (106 ) (794 ) — — Curtailment gain — (7,366 ) — — Total recognized in other comprehensive income/( loss) 410 (6,773 ) (503 ) 182 Total recognized in net periodic benefit cost and other comprehensive income/( loss) $ (822 ) $ (5,398 ) $ 164 $ 813 Weighted-average assumptions used to determine projected benefit obligations are as follows: Pension Plan Supplemental Retirement Plan 2018 2017 2018 2017 Discount rate 4.23 % 3.58 % 4.10 % 3.39 % Rate of compensation increase N/A 4.00 % 4.00 % 4.00 % Weighted-average assumptions used to determine net periodic benefit cost are as follows: Pension Plan Supplemental Retirement Plan 2018 2017 2018 2017 Discount rate 3.58 % 4.25 % 3.39 % 4.25 % Expected long-term return on plan assets 6.50 % 7.00 % N/A N/A Rate of compensation increase N/A 4.00 % 4.00 % 4.00 % To develop the expected long-term rate of return on assets assumption for the Pension Plan, the Company considered the historical returns and the future expectations for returns for each asset class, as well as target asset allocations of the pension portfolio. Based on this analysis, the Company selected 6.50% as the long-term rate of return on asset assumption. The Company maintains an Investment Policy for its Pension Plan. The objective of this policy is to seek a balance between capital appreciation, current income, and preservation of capital, with a longer term weighting towards equities because of the extended time horizon of the Pension Plan. The Investment Policy guidelines suggest that the target asset allocation percentages are from 30% to 60% in domestic large cap equities, from 5% to 20% in domestic small/mid cap equities, from 0% to 20% in international equities, and from 20% to 50% in cash and fixed income. The Company did not make contributions to its Pension Plan in 2018. The Company’s Pension Plan weighted-average asset allocations by asset category were as follows: December 31, 2018 2017 Equity securities 60 % 65 % Debt securities 35 29 Other 1 2 Cash and equivalents 4 4 Total 100 % 100 % The three broad levels of fair values used to measure the Pension Plan assets are as follows: • Level 1 – Quoted prices for identical assets in active markets. • Level 2 – Quoted prices for similar assets in active markets; quoted prices for identical or similar assets in inactive markets; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3 – Valuations derived from techniques in which one or more significant inputs or significant value drivers are unobservable in the markets and which reflect the Company’s market assumptions. The following table summarizes the various categories of the Pension Plan’s assets: Fair Value as of December 31, 2018 Level 1 Level 2 Level 3 Total (dollars in thousands) Asset category Cash and cash equivalents $ 3,520 $ — $ — $ 3,520 Fixed Income — 6,534 — 6,534 Equity securities Common Stock Large cap core 16,127 — — 16,127 Mid cap core — — — — Small cap core 2,090 — — 2,090 Mutual funds Domestic Equity 4,320 — — 4,320 International 3,409 — — 3,409 Domestic Fixed Income 6,648 6,648 Preferred Stock — — — — Total $ 36,114 $ 6,534 $ — $ 42,648 Fair Value as of December 31, 2017 Level 1 Level 2 Level 3 Total (dollars in thousands) Asset category Cash and cash equivalents $ 1,627 $ — $ — $ 1,627 Fixed Income — 7,292 — 7,292 Equity securities Common Stock Large cap core 18,026 — — 18,026 Mid cap core 56 — — 56 Small cap core 2,333 — — 2,333 Mutual funds Domestic Equity 4,564 — — 4,564 International 3,818 — — 3,818 Domestic Fixed Income 7,531 7,531 Preferred Stock — — — — Total $ 37,955 $ 7,292 $ — $ 45,247 There were no transfers between fair value levels during the years ended December 31, 2018 and 2017. The Company offers postretirement health care benefits for current and future retirees of the Bank. Employees receive a fixed monthly benefit at age 65 toward the purchase of postretirement medical coverage. The benefit received is based on the employee’s years of active service. The Company uses a December 31 measurement date each year to determine the benefit obligation for this plan. Projected benefit obligations and funded status were as follows: Postretirement Healthcare Plan 2018 2017 (dollars in thousands) Change in projected benefit obligation Obligation at beginning of year $ 617 $ 568 Service cost 23 19 Interest cost 22 23 Actuarial loss/(gain) (30 ) 37 Benefits paid (34 ) (30 ) Obligation at end of year 598 617 Change in plan assets Fair value at beginning of year — — Actual return on plan assets — — Employer contribution 33 30 Benefits paid (33 ) (30 ) Fair value at end of year — — Funded status at end of year $ (598 ) $ (617 ) Amounts recognized in the consolidated balance sheets consisted of: Postretirement Healthcare Plan 2018 2017 (dollars in thousands) Other liabilities $ (598 ) $ (617 ) Amounts recognized in accumulated other comprehensive loss consisted of: Postretirement Healthcare Plan 2018 2017 (dollars in thousands) Net actuarial (gain)/loss $ (113 ) $ (82 ) Prior service cost — — Total $ (113 ) $ (82 ) Information for retirement plans with an accumulated benefit obligation in excess of plan assets: Postretirement Healthcare Plan 2018 2017 (dollars in thousands) Projected benefit obligation $ 598 $ 617 Accumulated benefit obligation 598 617 Fair value of plan assets — — The components of net periodic benefit cost and amounts recognized in other comprehensive income were as follows: Postretirement Healthcare Plan 2018 2017 (dollars in thousands) Net periodic benefit cost Service cost $ 23 $ 19 Interest cost 22 23 Expected return on assets — — Amortization of prior service credit — — Amortization of net actuarial gain — (9 ) Net periodic benefit cost 45 33 Amounts recognized in other comprehensive income/( loss) Net actuarial (gain) loss (30 ) 37 Amortization of prior service credit — — Amortization of net actuarial gain — 9 Total recognized in other comprehensive income/( loss) (30 ) 46 Total recognized in net periodic benefit cost and other comprehensive income/( loss) $ 15 $ 79 Weighted-average assumptions used to determine projected benefit obligations are as follows: Postretirement Healthcare Plan 2018 2017 Discount rate 4.22 % 3.58 % Rate of compensation increase N/A N/A Weighted-average assumptions used to determine net periodic benefit cost are as follows: Postretirement Healthcare Plan 2018 2017 Discount rate 3.58 % 4.25 % Expected long-term return on plan assets N/A N/A Rate of compensation increase N/A N/A Assumed health care cost trend rates are as follows: Postretirement Healthcare Plan 2018 2017 Health care cost trend rate assumed for next year 4.00 % 4.00 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.00 % 4.00 % Year that the rate reaches the ultimate trend rate 2018 2017 Assumed health care trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: One Percentage Point Increase Decrease (dollars in thousands) Effect on total service and interest cost $ — $ — Effect on postretirement benefit obligation 4 (4 ) Benefits expected to be paid in the next ten years are as follows: Pension Plan Supplemental Retirement Plan Postretirement Healthcare Plan Total (dollars in thousands) Year-ended December 31, 2019 $ 1,585 $ 577 $ 33 $ 2,195 2020 1,748 575 34 2,357 2021 1,811 572 33 2,416 2022 1,947 590 34 2,571 2023 2,063 587 34 2,684 2024-2028 inclusive 11,479 2,882 171 14,532 Ten year total $ 20,633 $ 5,783 $ 339 $ 26,755 The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost during 2019 are as follows: Pension Plan Supplemental Retirement Plan Postretirement Healthcare Plan Total (dollars in thousands) Prior service cost $ (4 ) $ — $ — $ (4 ) Net (gain)/loss 152 — (4 ) 148 Total $ 148 $ — $ (4 ) $ 144 Employee Profit Sharing and 401(k) Plan The Company maintains a Profit Sharing Plan (“PSP”) that provides for deferral of federal and state income taxes on employee contributions allowed under Section 401(k) of federal law. Beginning in 2018, the Company matched employee contributions up to 100% of the first 4% of each participant’s salary, eligible bonus, and eligible incentive, up from 3% in 2017. Employees are eligible to participate in the PSP on the first day of their initial date of service. Each year, the Company may also make a discretionary contribution to the PSP. In 2018, employees were eligible to participate in the discretionary contribution portion of the PSP after completing 12 months of employment, and 1,000 hours of service. The employee must be employed on the last day of the calendar year, or retire at the normal retirement age of 65 during the calendar year to receive the discretionary contribution. Effective in 2019, employees are eligible to participate in the discretionary contribution portion of the PSP on the first day of their initial date of service. Employee Stock Ownership Plan The Company has an Employee Stock Ownership Plan (“ESOP”) for its eligible employees. Employees are eligible to participate upon the attainment of age 21 and the completion of 12 months of service consisting of at least 1,000 hours. Purchases of the Company’s stock by the ESOP will be funded by employer contributions or reinvestment of cash dividends. Total expenses related to the Profit Sharing and ESOP Plans for the years ended December 31, 2018, 2017 and 2016, amounted to approximately $2.6 million, $1.5 million, and $949,000, respectively. Defined Contribution SERP Plan (“DC SERP”) For executives participating in the DC SERP plan, the Company made a discretionary contribution of 10% of each executive’s base salary and bonus to his or her account under the Company’s DC SERP, the Executive Deferred Compensation Plan. Total expenses related to the Company’s DC SERP for the years ended December 31, 2018, 2017 and 2016, amounted to approximately $209,000, $126,000, and $68,000, respectively. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Share Based Compensation [Abstract] | |
Share-Based Compensation | 14. SHARE-BASED COMPENSATION In 1993, the Company adopted a Stock Option Plan for key employees as an incentive for them to assist the Company in achieving long-range performance goals. During 2005, the Company’s shareholders amended the plan to permit the issuance of restricted stock, restricted stock units, and stock appreciation rights. In 2017, the Company adopted the 2017 Equity and Cash Incentive Plan (the “2017 Plan”) and all future awards will be made under the 2017 Plan. The 2017 plan permits the issuance of restricted stock, restricted stock units (both time and performance-based), stock options, and stock appreciation rights. Stock options time-vest over a five-year period. All options expire ten years from the date granted and have been issued at fair value at the date of grant which, in some instances, may be less than publicly traded values. There were no outstanding stock options at December 31, 2018. A summary of stock option transactions for the periods of December 31, 2018 and 2017, and changes during the years ended on those dates, is presented below: 2018 2017 Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Stock Options Outstanding at beginning of year 16,377 $ 29.21 45,612 $ 30.23 Granted — — — — Forfeited — — — — Expired (2,600 ) 29.21 (4,500 ) 30.11 Exercised (13,777 ) 29.21 (24,735 ) 30.93 Outstanding at end of year — $ — 16,377 29.21 Exercisable at end of year — $ — 16,377 $ 29.21 Restricted stock awards time-vest either over a three-year or five-year period and have been fair valued as of the date of grant. The holders of restricted stock awards participate fully in the rewards of stock ownership of the Company, including voting and dividend rights. A summary of non-vested restricted shares outstanding as of December 31, 2018 and 2017, and changes during the years ended on those dates, is presented below: 2018 2017 Number of Shares Weighted Average Grant Value Number of Shares Weighted Average Grant Value Restricted stock Non-vested at beginning of year 43,240 $ 53.13 41,957 $ 44.17 Granted 17,373 80.43 18,906 64.62 Vested (15,760 ) 50.10 (14,113 ) 42.62 Forfeited (3,542 ) 60.84 (3,510 ) 49.19 Non-vested at end of year 41,311 $ 65.10 43,240 $ 53.13 Performance-based restricted stock units vest based upon the Company’s performance over a three-year period and have been fair valued as of the date of grant. The holders of performance-based restricted stock units do not participate in the rewards of stock ownership of the Company until vested. A summary of non-vested performance-based restricted stock units outstanding as of December 31, 2018 and 2017, and changes during the years ended on those dates, is presented below: 2018 2017 Number of Units Weighted Average Grant Value Number of Units Weighted Average Grant Value Performance-based restricted stock units Non-vested at beginning of year 21,613 $ 56.05 25,941 $ 45.17 Granted 23,511 76.56 12,079 64.72 Vested (Performance achieved) — — — — Forfeited (3,713 ) 70.68 (8,597 ) 46.19 Expired (Performance not achieved) — — (7,810 ) 44.17 Non-vested at end of year 41,411 $ 66.39 21,613 $ 56.05 Time based restricted stock units vest over a three-year-period and have been fair valued as of the date of the grant. The holders of time based restricted stock units do not participate in the rewards of stock ownership of the company until vested. A summary of nonvested time based restricted stock units outstanding as of December, 31 2018 and 2017, and changes during the years ended on those dates, is presented below: 2018 2017 Number of Shares Weighted Average Grant Value Number of Shares Weighted Average Grant Value Time-based restricted stock units Non-vested at beginning of year — $ — — $ — Granted 7,839 76.56 — — Vested (225 ) 76.56 — — Forfeited (837 ) 76.56 — — Non-vested at end of year 6,777 $ 76.56 — $ — The following table presents the amounts recognized in the consolidated income statement for restricted stock awards, time-based restricted stock units, and performance-based restricted stock units: December 31, 2018 2017 2016 (dollars in thousands) Share-based compensation expense $ 2,592 $ 1,045 $ 997 Related income tax benefit $ 729 $ 427 $ 407 The 2017 Plan allows Directors of the Company to receive their annual retainer fee in the form of stock in the Company. Total shares issued under the 2017 Plan in the years ended December 31, 2018 and 2017 were 4,164 and 3,672, respectively. |
Financial Instruments with Off-
Financial Instruments with Off-Balance-Sheet Risk | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments with Off-Balance-Sheet Risk | 15. FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK To meet the financing needs of its customers, the Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business. These financial instruments are primarily comprised of commitments to extend credit, commitments to sell residential real estate mortgage loans, risk participation agreements, and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amount of those instruments assuming that the amounts are fully advanced and that collateral or other security is of no value. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Off-balance-sheet financial instruments with contractual amounts that present credit risk included the following: December 31, 2018 December 31, 2017 (dollars in thousands) Financial instruments whose contractual amount represents credit risk: Commitments to extend credit: Unused portion of existing lines of credit $ 368,410 $ 304,298 Origination of new loans 24,505 45,061 Standby letters of credit 8,752 8,322 Financial instruments whose notional amount exceeds the amount of credit risk: Commitments to sell residential mortgage loans — 1,490 Standby letters of credit are conditional commitments issued by the Bank to guarantee performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. Most guarantees extend for one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The collateral supporting those commitments varies and may include real property, accounts receivable, or inventory. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained upon extension of the credit is based on management’s credit evaluation of the customer. Collateral held varies, but may include primary residences, accounts receivable, inventory, property, plant and equipment, and income-producing commercial real estate. See Note 22 - Derivatives and Hedging Activities |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. COMMITMENTS AND CONTINGENCIES Lease Commitments . The Company is obligated under various lease agreements covering its main office, branch offices, and other locations. These agreements are accounted for as operating leases and their terms expire between 2019 and 2030 and, in some instances, contain options to renew for periods up to 25 years. Year Ended Future Minimum December 31, Lease Payments (dollars in thousands) 2019 4,448 2020 4,661 2021 4,662 2022 4,553 2023 4,455 Thereafter 17,128 Total minimum lease payments $ 39,907 Several lease agreements contain clauses calling for escalation of minimum lease payments contingent on increases in real estate taxes, gross income adjustments, percentage increases in the consumer price index, and certain ancillary maintenance costs. Total rental expense was $4.7 million, $4.7 million, and $4.6 million for the years ended December 31, 2018, 2017 and 2016, respectively. Under the terms of a sublease agreement, the Company will receive minimum annual rental payments of approximately $32,000 through July 31, 2019. Total rental income was $62,000, Change in Control Agreements . The Company has entered into agreements with its Chief Executive Officer and with certain other senior officers, whereby, following the occurrence of a change in control of the Company, if employment is terminated (except because of death, retirement, disability, or for “cause” as defined in the agreements) or is voluntarily terminated for “good reason,” as defined in the agreements, said officers will be entitled to receive additional compensation, as defined in the agreements. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | 17. SHAREHOLDERS’ EQUITY Capital guidelines issued by the Federal Reserve Bank (the “FRB”) and by the FDIC require that the Company and the Bank maintain minimum capital levels for capital adequacy purposes. These regulations also require banks and their holding companies to maintain higher capital levels to be considered “well-capitalized.” 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 financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, there are specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The risk-based capital rules are designed to make regulatory capital more sensitive to differences in risk profiles among bank and bank holding companies, to account for off-balance-sheet exposure, and to minimize disincentives for holding liquid assets. In July 2013, the Federal Reserve, the Office of the Comptroller of the Currency (“OCC”), and the FDIC approved final rules (the “Capital Rules”) establishing a new comprehensive capital framework for U.S. banking organizations. The Capital Rules generally implement the Basel Committee on Banking Supervision’s (the “Basel Committee”) December 2010 final capital framework referred to as “Basel III” for strengthening international capital standards. The Capital Rules revise the definitions and the components of regulatory capital, as well as address other issues affecting the numerator in banking institutions’ regulatory capital ratios. The Capital Rules also address asset risk weights and other matters affecting the denominator in banking institutions’ regulatory capital ratios and replace the existing general risk-weighting approach with a more risk-sensitive approach. The Capital Rules: (i) include “Common Equity Tier 1” (“CET1”) and related regulatory capital ratio of CET1 to risk-weighted assets; (ii) specify that Tier 1 capital consists of CET1 and “Additional Tier 1 capital” instruments meeting certain revised requirements; (iii) mandate that most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital; and (iv) expand the scope of the deductions from and adjustments to capital as compared to existing regulations. Under the Capital Rules, for most banking organizations, including the Company, the most common form of Additional Tier 1 capital is non-cumulative perpetual preferred stock, and the most common forms of Tier 2 capital are subordinated notes and a portion of the allocation for loan and lease losses, in each case, subject to the Capital Rules’ specific requirements. Pursuant to the Capital Rules, effective January 1, 2015, the minimum capital ratios are as follows: • 4.5% CET1 to risk-weighted assets; • 6.0% Tier 1 capital (that is, CET1 plus Additional Tier 1 capital) to risk-weighted assets; • 8.0% Total capital (that is, Tier 1 capital plus Tier 2 capital) to risk-weighted assets; and • 4.0% Tier 1 capital to average consolidated assets as reported on consolidated financial statements (called “leverage ratio”). The Capital Rules also include a “capital conservation buffer,” composed entirely of CET1, in addition to these minimum risk-weighted asset ratios. The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions that do not hold the requisite capital conservation buffer will face constraints on dividends, capital instrument repurchases, interest payments on capital instruments and discretionary bonus payments based on the amount of the shortfall. Thus, the capital standards applicable to the Company include an additional capital conservation buffer of 2.5% of CET1, effectively resulting in minimum ratios inclusive of the capital conservation buffer of (i) CET1 to risk-weighted assets of at least 7%, (ii) Tier 1 capital to risk-weighted assets of at least 8.5%, and (iii) total capital to risk-weighted assets of at least 10.5%. The Capital Rules provide for a number of deductions from and adjustments to CET1. These include, for example, the requirement that mortgage servicing assets, deferred tax assets arising from temporary differences that could not be realized through net operating loss carrybacks, and significant investments in non-consolidated financial entities be deducted from CET1 to the extent that any one such category exceeds 10% of CET1 or all such items, in the aggregate, exceed 15% of CET1. In November 2017, the Federal Reserve finalized a rule pausing the phase-in of these deductions and adjustments for non-advanced approaches institutions. This rule is in effect pending the comment period and review of the general proposal to simplify the Capital Rules for non-advanced approaches institutions. In addition, under the current general risk-based capital rules, the effects of accumulated other comprehensive income or loss items included in shareholders’ equity (for example, mark-to-market of securities held in the available for sale portfolio) under U.S. generally accepted accounting principles The Capital Rules also preclude certain hybrid securities, such as trust preferred securities, from inclusion in bank holding companies’ Tier 1 capital, although bank holding companies that had total consolidated assets of less than $15 billion at December 31, 2009 may include trust preferred securities issued prior to May 19, 2010 as a component of Tier 1 capital. The risk-weighting categories in the Capital Rules are standardized and include a risk-sensitive number of categories, depending on the nature of the assets, generally ranging from 0% for U.S. government and agency securities, to 1,250% for certain credit exposures, and resulting in higher risk weights for a variety of asset classes. Management believes that as of December 31, 2018 and 2017, the Company and the Bank met all applicable minimum capital requirements and were considered “well-capitalized” by both the FRB and the FDIC. There have been no events or conditions since the end of the year that management believes would have changed the Company’s or the Bank’s category. In November 2018, the federal banking agencies issued a proposed rule to simplify the regulatory capital requirements for depository institutions and their holding companies with assets of less than $10 billion that meet certain conditions. If a final rule is adopted, it would likely affect the capital requirements applicable to the Company and the Bank. The Company’s and the Bank’s actual and required capital measures were as follows: Actual Minimum Capital Required For Capital Adequacy Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Phase-In Schedule Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) At December 31, 2018 Cambridge Bancorp: Total capital (to risk-weighted assets) $ 189,888 13.2 % $ 114,666 8.0 % $ 141,541 9.875 % $ 150,500 10.5 % N/A N/A Tier I capital (to risk-weighted assets) 173,070 12.1 % 86,000 6.0 % 112,875 7.875 % 121,833 8.5 % N/A N/A Common equity tier I capital (to risk-weighted assets) 173,070 12.1 % 64,500 4.5 % 91,375 6.375 % 100,333 7.0 % N/A N/A Tier I capital (to average assets) 173,070 8.5 % 81,507 4.0 % 81,507 4.000 % 81,507 4.0 % N/A N/A Cambridge Trust Company: Total capital (to risk-weighted assets) $ 185,507 12.9 % $ 114,666 8.0 % $ 141,541 9.875 % $ 150,500 10.5 % $ 143,333 10.0 % Tier I capital (to risk-weighted assets) 168,689 11.8 % 86,000 6.0 % 112,875 7.875 % 121,833 8.5 % 114,666 8.0 % Common equity tier I capital (to risk-weighted assets) 168,689 11.8 % 64,500 4.5 % 91,375 6.375 % 100,333 7.0 % 93,166 6.5 % Tier I capital (to average assets) 168,689 8.3 % 81,507 4.0 % 81,507 4.000 % 81,507 4.0 % 101,884 5.0 % At December 31, 2017 Cambridge Bancorp: Total capital (to risk-weighted assets) $ 168,615 13.7 % $ 98,136 8.0 % $ 113,470 9.250 % $ 128,804 10.5 % N/A N/A Tier I capital (to risk-weighted assets) 153,281 12.5 % 73,602 6.0 % 88,936 7.250 % 104,270 8.5 % N/A N/A Common equity tier I capital (to risk-weighted assets) 153,281 12.5 % 55,202 4.5 % 70,535 5.750 % 85,869 7.0 % N/A N/A Tier I capital (to average assets) 153,281 8.1 % 76,026 4.0 % 76,026 4.000 % 76,026 4.0 % N/A N/A Cambridge Trust Company: Total capital (to risk-weighted assets) $ 164,880 13.4 % $ 98,136 8.0 % $ 113,470 9.250 % $ 128,804 10.5 % $ 122,670 10.0 % Tier I capital (to risk-weighted assets) 149,546 12.2 % 73,602 6.0 % 88,936 7.250 % 104,270 8.5 % 98,136 8.0 % Common equity tier I capital (to risk-weighted assets) 149,546 12.2 % 55,202 4.5 % 70,535 5.750 % 85,869 7.0 % 79,736 6.5 % Tier I capital (to average assets) 149,546 7.9 % 76,026 4.0 % 76,026 4.000 % 76,026 4.0 % 95,033 5.0 % |
Other Income
Other Income | 12 Months Ended |
Dec. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Other Income | 18. OTHER INCOME The components of other income were as follows: For the Year Ended December 31, 2018 2017 2016 (dollars in thousands) Safe deposit box income $ 342 $ 348 $ 366 Loan fee income 358 473 229 Miscellaneous income 569 334 326 Total other income $ 1,269 $ 1,155 $ 921 |
Other Operating Expenses
Other Operating Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Other Operating Expenses | 19. OTHER OPERATING EXPENSES The components of other operating expenses were as follows: For the Year Ended December 31, 2018 2017 2016 (dollars in thousands) Director fees $ 724 $ 576 $ 513 Charitable donations & sponsorships 518 432 434 Printing and supplies 272 251 291 Travel and entertainment 456 339 331 Dues and memberships 293 260 276 Physical security 131 172 233 Postage and mailing 201 229 241 Miscellaneous expense (331 ) 885 613 Total other operating expenses $ 2,264 $ 3,144 $ 2,932 Miscellaneous expense in 2018 and 2017 includes the reclassification adjustment for retirement plan expenses as required upon adoption of ASU 2017-07. |
Other Comprehensive Income
Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Other Comprehensive Income | 20. OTHER COMPREHENSIVE INCOME Comprehensive income is defined as all changes to equity except investments by and distributions to shareholders. Net income is a component of comprehensive income, with all other components referred to in the aggregate as “other comprehensive income.” The Company’s other comprehensive income consists of unrealized gains or losses on securities held at year-end classified as available for sale and the component of the unfunded retirement liability computed in accordance with the requirements of ASC 715, “ Compensation – Retirement Benefits. For the Year Ended December 31, 2018 For the Year Ended December 31, 2017 For the Year Ended December 31, 2016 Before Tax Amount Tax (Expense) or Benefit Net-of- tax Amount Before Tax Amount Tax (Expense) or Benefit Net-of- tax Amount Before Tax Amount Tax (Expense) or Benefit Net-of- tax Amount (dollars in thousands) Unrealized (losses)/gains on available for sale Securities Unrealized holding (losses)/gains arising during the period $ (231 ) $ (11 ) $ (242 ) $ 187 $ (59 ) $ 128 $ (1,224 ) $ 489 $ (735 ) Reclassification adjustment for (gains)/losses recognized in net income (2 ) — (2 ) 3 (2 ) 1 (438 ) 157 (281 ) Derivatives Change in interest rate contracts 1,045 (294 ) 751 — — — — — — Defined benefit retirement plans Net change in retirement liability 124 (35 ) 89 6,545 (2,674 ) 3,871 (738 ) 301 (437 ) Total Other Comprehensive Income/(Loss) $ 936 $ (340 ) $ 596 $ 6,735 $ (2,735 ) $ 4,000 $ (2,400 ) $ 947 $ (1,453 ) Reclassifications out of Accumulated Other Comprehensive Income (“AOCI”) are presented below: For the Year Ended December 31, Details about Accumulated Other Comprehensive Income (Loss) Components 2018 2017 2016 Affected Line Item in the Statement where Net Income is Presented (dollars in thousands) Unrealized gains and losses on available for sale securities $ 2 $ (3 ) $ 438 (Loss) gain on disposition of investment securities Tax benefit or (expense) — 2 (157 ) Provision for income taxes Net of tax $ 2 $ (1 ) $ 281 Net income |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 21. EARNINGS PER SHARE The following represents a reconciliation between basic and diluted earnings per share: For the Year Ended December 31, 2018 2017 2016 (dollars in thousands, except per share data) Earnings per common share - basic: Numerator: Net income $ 23,881 $ 14,816 $ 16,896 Less dividends and undistributed earnings allocated to participating securities (239 ) (157 ) (182 ) Net income applicable to common shareholders $ 23,642 $ 14,659 $ 16,714 Denominator: Weighted average common shares outstanding 4,062 4,031 3,990 Earnings per common share – basic $ 5.82 $ 3.64 $ 4.19 Earnings per common share - diluted: Numerator: Net income $ 23,881 $ 14,816 $ 16,896 Less dividends and undistributed earnings allocated to participating securities (239 ) (157 ) (181 ) Net income applicable to common shareholders $ 23,642 $ 14,659 $ 16,715 Denominator: Weighted average common shares outstanding 4,062 4,031 3,990 Dilutive effect of common stock equivalents 37 35 39 Weighted average diluted common shares outstanding 4,099 4,066 4,029 Earnings per common share – diluted $ 5.77 $ 3.61 $ 4.15 |
Derivative And Hedging Activiti
Derivative And Hedging Activities | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative And Hedging Activities | 22. DERIVATIVES and Hedging Activities The Company utilizes interest rate swaps and floors to mitigate exposure to interest rate risk and to facilitate the needs of our customers. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts principally related to the Company’s assets. Cash Flow Hedges of Interest Rate Risk The Company uses interest floors to manage its exposure to interest rate movements. Interest rate floors designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates fall below the strike rate on the contract in exchange for an up-front premium. The Company executed an interest rate floor with a notional value of $150.0 million during the fourth quarter of 2018. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income and subsequently reclassified into interest income in the same period(s) during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge components excluded from the assessment of effectiveness are recognized over the life of the hedge on a systematic and rational basis. The earnings recognition of excluded components is presented in interest income. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income as interest payments are received on the Company’s variable-rate assets. Non-designated Hedges Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. For the Company’s customers, these are interest rate swaps and risk participation agreements. Interest Rate Swaps. The Company enters into interest rate swap contracts to help commercial loan borrowers manage their interest rate risk. The interest rate swap contracts with commercial loan borrowers allow them to convert floating-rate loan payments to fixed-rate loan payments. When the Bank enters into an interest rate swap contract with a commercial loan borrower, it simultaneously enters into a “mirror” swap contract with a third party. The third party exchanges the client’s fixed‑rate loan payments for floating-rate loan payments. These derivatives are not designated as hedges and therefore, changes in fair value are recognized in earnings. Because these derivatives have mirror-image contractual terms, the changes in fair value substantially offset each other through earnings. Fees earned in connection with the execution of derivatives related to this program are recognized in earnings through other loan related derivative income. The credit risk associated with swap transactions is the risk of default by the counterparty. To minimize this risk, the Company enters into interest rate agreements only with highly rated counterparties that management believes to be creditworthy. The notional amounts of these agreements do not represent amounts exchanged by the parties and, thus, are not a measure of the potential loss exposure. Risk Participation Agreements. The Company enters into risk participation agreements (“RPAs”) with other banks participating in commercial loan arrangements. Participating banks guarantee the performance on borrower-related interest rate swap contracts. RPAs are derivative financial instruments and are recorded at fair value. These derivatives are not designated as hedges and therefore, changes in fair value are recognized in earnings with a corresponding offset within other assets or other liabilities. Under a risk participation-out agreement, a derivative asset, the Company participates out a portion of the credit risk associated with the interest rate swap position executed with the commercial borrower, for a fee paid to the participating bank. Under a risk participation-in agreement, a derivative liability, the Company assumes, or participates in, a portion of the credit risk associated with the interest rate swap position with the commercial borrower, for a fee received from the other bank. The following tables present the notional amount, the location, and fair values of derivative instruments in the Company’s Consolidated Balance Sheets: December 31, 2018 Derivative Assets Derivative Liabilities Notional Amount Balance Sheet Location Fair Value Notional Amount Balance Sheet Location Fair Value (dollars in thousands) (dollars in thousands) Derivatives designated as hedging instruments Interest rate contracts $ 150,000 Other Assets $ 1,970 $ — Other Liabilities $ — Total derivatives designated as hedging instruments $ 1,970 $ — Derivatives not designated as hedging instruments Loan related derivative contracts Interest rate swaps with customers $ 150,489 Other Assets $ 5,782 $ — Other Liabilities $ — Mirror swaps with counterparties — Other Assets — 150,489 Other Liabilities 5,782 Risk participation agreements out to counterparties 19,000 Other Assets 28 — Other Liabilities — Risk participation agreements in with counterparties — Other Assets — 63,825 Other Liabilities 179 Total derivatives not designated as hedging instruments $ 5,810 $ 5,961 December 31, 2017 Derivative Assets Derivative Liabilities Notional Amount Balance Sheet Location Fair Value Notional Amount Balance Sheet Location Fair Value (dollars in thousands) (dollars in thousands) Derivatives designated as hedging instruments Interest rate contracts $ — Other Assets $ — $ — Other Liabilities $ — Total derivatives designated as hedging instruments $ — $ — Derivatives not designated as hedging instruments Loan related derivative contracts Interest rate swaps with customers $ 74,758 Other Assets $ 1,859 $ — Other Liabilities $ — Mirror swaps with counterparties — Other Assets — 74,758 Other Liabilities 1,859 Risk participation agreements out to counterparties — Other Assets — — Other Liabilities — Risk participation agreements in with counterparties — Other Assets — 38,494 Other Liabilities 81 Total derivatives not designated as hedging instruments $ 1,859 $ 1,940 The following table presents the effect of cash flow hedge accounting on Accumulated Other Comprehensive Income as of Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Included Component Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Excluded Component 2018 2018 (dollars in thousands) (dollars in thousands) Interest rate contracts $ 1,002 $ — $ 1,002 Interest Income $ (43 ) $ — $ (43 ) Total $ 1,002 $ — $ 1,002 $ (43 ) $ — $ (43 ) The Company had no cash flow hedges for the year ended December 31, 2017. During 2019, the Company estimates that an additional $194,000 will be reclassified out of accumulated other comprehensive income into earnings, as a reduction to interest income. The following table presents the effect of the Company’s derivative financial instruments on the Income Statement as of Year Ended December 31, 2018 Interest Income (Expense) (dollars in thousands) Total amounts of income and expense line items presented in the income statement in which the effects of fair value or cash flow hedges are recorded $ (43 ) The effects of fair value and cash flow hedging: Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest rate contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ (43 ) Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Included Component — Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Excluded Component $ (43 ) The following table presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Income Statement as of the periods presented: Amount of Gain or (Loss) Recognized in Income on Derivative Year Ended December 31 Year Ended December 31 Year Ended December 31 2018 2017 2016 Location of Gain or (Loss) (dollars in thousands) Other contracts Other income $ 276 $ 426 $ 209 Total $ 276 $ 426 $ 209 Credit-risk-related Contingent Features The Company’s derivative agreements with institutional counterparties contain various credit-risk related contingent provisions, such as requiring the Company to maintain a well-capitalized capital position. If the Company fails to meet these conditions, the counterparties could request the Company make immediate payment or demand that the Company provide immediate and ongoing full collateralization on derivative positions in net liability positions. As of December 31, 2018, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $811,000. As of December 31, 2018, the Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $260,000. If the Company had breached any of these provisions at December 31, 2018, it could have been required to settle its obligations under the agreements at their termination value $811,000. 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. The Company seeks to minimize counterparty credit risk through credit approvals, limits, monitoring procedures, and obtaining collateral, where appropriate. Institutional counterparties must have an investment grade credit rating and be approved by the Company’s Board of Directors. As such, management believes the risk of incurring credit losses on derivative contracts with institutional counterparties is remote. The Company’s exposure relating to institutional counterparties was $743,000 and $1.2 million at December 31, 2018 and December 31, 2017, respectively. The Company’s exposure relating to customer counterparties was approximately $3.9 million and $342,000 at December 31, 2018 and December 31, 2017, respectively. Credit exposure may be reduced by the value of collateral pledged by the counterparty. Balance Sheet Offsetting Certain financial instruments may be eligible for offset in the consolidated balance sheet and/or subject to master netting arrangements or similar agreements. The Company’s derivative transactions with institutional counterparties are generally executed under International Swaps and Derivative Association (“ISDA”) master agreements which include “right of set-off” provisions. In such cases there is generally a legally enforceable right to offset recognized amounts and there may be an intention to settle such amounts on a net basis. Generally, the Company does not offset such financial instruments for financial reporting purposes. The following tables present the information about financial instruments that are eligible for offset in the consolidated balance sheet as December 31, 2018 and December 31, 2017: Gross Amounts Not Offset Gross Amounts of Recognized Gross Amounts Offset Net Amounts Recognized Financial Instruments Collateral Pledged (Received) Net Amount December 31, 2018 (dollars in thousands) Offsetting of Derivative Assets Derivative Assets $ 7,780 $ — $ 7,780 $ 3,099 $ (743 ) $ 3,938 Offsetting of Derivative Liabilities Derivative Liabilities $ 5,961 $ — $ 5,961 $ 3,099 $ 260 $ 2,602 Gross Amounts Not Offset Gross Amounts of Recognized Gross Amounts Offset Net Amounts Recognized Financial Instruments Collateral Pledged (Received) Net Amount December 31, 2017 (dollars in thousands) Offsetting of Derivative Assets Derivative Assets $ 1,859 $ — $ 1,859 $ 326 $ (1,131 ) $ 402 Offsetting of Derivative Liabilities Derivative Liabilities $ 1,940 $ — $ 1,940 $ 326 $ — $ 1,614 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 23. FAIR VALUE MEASUREMENTS The following is a summary of the carrying values and estimated fair values of the Company’s significant financial instruments as of the dates indicated: December 31, 2018 December 31, 2017 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (dollars in thousands) Financial assets Cash and cash equivalents $ 18,473 $ 18,473 $ 103,591 $ 103,591 Securities available for sale 168,163 168,163 205,017 205,017 Securities held to maturity 282,869 281,310 232,188 233,554 Loans, net 1,543,004 1,484,905 1,335,579 1,304,719 Loans held for sale — — — — FHLB Boston stock 6,844 6,844 4,242 4,242 Accrued interest receivable 5,762 5,762 5,128 5,128 Mortgage servicing rights 666 941 793 1,049 Interest rate contracts 1,970 1,970 — — Loan level interest rate swaps 5,782 5,782 1,859 1,859 Risk participation agreements out to counterparties 28 28 — — Financial liabilities Deposits 1,811,410 1,809,051 1,775,400 1,772,838 Short-term borrowings 90,000 90,000 — — Long-term borrowings 3,409 3,363 3,579 3,559 Loan level interest rate swaps 5,782 5,782 1,859 1,859 Risk participation agreements in with counterparties 179 179 81 81 The Company follows ASC 820, “Fair Value Measurements and Disclosures,” • Level 1 – Quoted prices for identical assets or liabilities in active markets. • Level 2 – Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3 – Valuations derived from techniques in which one or more significant inputs or significant value drivers are unobservable in the markets and which reflect the Company’s market assumptions. Under ASC 820, fair values are based on 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. When available, the Company uses quoted market prices to determine fair value. If quoted prices are not available, fair value is based upon valuation techniques, such as matrix pricing or other models that use, where possible, current market-based or independently sourced market parameters, such as interest rates. If observable market-based inputs are not available, the Company uses unobservable inputs to determine appropriate valuation adjustments using methodologies applied consistently over time. Valuation techniques based on unobservable inputs are highly subjective and require judgments regarding significant matters, such as the amount and timing of future cash flows and the selection of discount rates that may appropriately reflect market and credit risks. Changes in these judgments often have a material impact on the fair value estimates. In addition, since these estimates are as of a specific point in time, they are susceptible to material near-term changes. The fair values disclosed do not reflect any premium or discount that could result from offering significant holdings of financial instruments at bulk sale, nor do they reflect the possible tax ramifications or estimated transaction costs. Changes in economic conditions may also dramatically affect the estimated fair values. The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Securities available for sale, and derivative instruments and hedges are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as collateral dependent impaired loans. The following tables summarize certain assets reported at fair value on a recurring basis: Fair Value as of December 31, 2018 Level 1 Level 2 Level 3 Total (dollars in thousands) Measured on a recurring basis Securities available for sale U.S. GSE obligations $ — $ 74,039 $ — $ 74,039 Mortgage-backed securities — 89,268 — 89,268 Corporate debt securities — 4,856 — 4,856 Mutual funds — — — — Other assets Interest rate swaps with customers — 5,782 — 5,782 Risk participation agreements out to counterparties — 28 — 28 Interest rate contracts — 1,970 — 1,970 Other liabilities Mirror swaps with counterparties — 5,782 — 5,782 Risk participation agreements in with counterparties — 179 — 179 Fair Value as of December 31, 2017 Level 1 Level 2 Level 3 Total (dollars in thousands) Measured on a recurring basis Securities available for sale U.S. GSE obligations $ — $ 88,791 $ — $ 88,791 Mortgage-backed securities — 110,626 — 110,626 Corporate debt securities — 5,001 — 5,001 Mutual funds 599 — — 599 Other assets Interest rate swaps with customers — 1,859 — 1,859 Risk participation agreements out to counterparties — — — — Interest rate cash flow derivative — — — — Other liabilities Mirror swaps with counterparties — 1,859 — 1,859 Risk participation agreements in with counterparties — 81 — 81 There were no assets measured at fair value on a non-recurring basis during the year ended December 31, 2018 and 2017. There were no transfers between fair value levels for the years ended December 31, 2018 and 2017. The following is a description of the principal valuation methodologies used by the Company to estimate the fair values of its financial instruments. Investment Securities For investment securities, fair values are primarily based upon valuations obtained from a national pricing service which uses matrix pricing with inputs that are observable in the market or can be derived from, or corroborated by, observable market data. When available, quoted prices in active markets for identical securities are utilized. Loans Held for Sale For loans held for sale, fair values are estimated using projected future cash flows, discounted at rates based upon either trades of similar loans or mortgage-backed securities, or at current rates at which similar loans would be made to borrowers with similar credit ratings and for similar remaining maturities. Loans For most categories of loans, fair values are estimated using projected future cash flows, discounted at rates based upon current rates at which similar loans would be made to borrowers with similar credit ratings, and for similar remaining maturities. Projected estimated cash flows are adjusted for prepayment assumptions, liquidity premium assumptions, and credit loss assumptions. Loans that are deemed to be impaired in accordance with ASC 310, “Receivables,” are valued based upon the lower of cost or fair value of the underlying collateral. FHLB of Boston Stock The fair value of FHLB of Boston stock equals its carrying value since such stock is only redeemable at its par value. Deposits The fair value of non-maturity deposit accounts is the amount payable on demand at the reporting date. This amount does not take into account the value of the Bank’s long-term relationships with core depositors. The fair value of fixed-maturity certificates of deposit is estimated using a replacement cost of funds approach and is based upon rates currently offered for deposits of similar remaining maturities. Long-Term Borrowings For long-term borrowings, fair values are estimated using future cash flows, discounted at rates based upon current costs for debt securities with similar terms and remaining maturities. Other Financial Assets and Liabilities Cash and cash equivalents, accrued interest receivable, and short-term borrowings have fair values which approximate their respective carrying values because these instruments are payable on demand or have short-term maturities and present relatively low credit risk and interest rate risk. Derivative Instruments and Hedges The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Bank incorporates credit valuation adjustments to appropriately reflect nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Bank has considered the impact of netting and any applicable credit enhancements, such as collateral postings. Off-Balance-Sheet Financial Instruments In the course of originating loans and extending credit, the Bank will charge fees in exchange for its commitment. While these commitment fees have value, the Bank has not estimated their value due to the short-term nature of the underlying commitments and their immateriality. Values Not Determined In accordance with ASC 820, the Company has not estimated fair values for non-financial assets such as banking premises and equipment, goodwill, the intangible value of the Bank’s portfolio of loans serviced for itself, and the intangible value inherent in the Bank’s deposit relationships (i.e., core deposits), among others. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | 24. Quarterly Results of Operations (unaudited) 2018 Quarters Fourth Third Second First (dollars in thousands, except share data) Interest and Dividend Income $ 18,385 $ 17,602 $ 16,936 $ 16,132 Interest Expense 1,975 1,431 1,082 979 Net Interest and Dividend Income 16,410 16,171 15,854 15,153 Provision for (Release of) Loan Losses 715 457 (79 ) 409 Net Interest and Dividend Income after Provision for Loan Losses 15,695 15,714 15,933 14,744 Noninterest Income 8,038 8,929 7,844 8,178 Noninterest Expense 16,842 15,879 15,765 15,501 Income Before Taxes 6,891 8,764 8,012 7,421 Income Taxes 1,585 2,105 1,901 1,616 Net Income $ 5,306 $ 6,659 $ 6,111 $ 5,805 Share Data: Average Shares Outstanding, Basic 4,065,681 4,064,620 4,059,927 4,053,355 Average Shares Outstanding, Diluted 4,102,546 4,101,378 4,094,489 4,071,975 Basic Earnings Per Share $ 1.29 $ 1.62 $ 1.49 $ 1.42 Diluted Earnings Per Share $ 1.28 $ 1.61 $ 1.48 $ 1.41 2017 Quarters Fourth Third Second First (dollars in thousands, except share data) Interest and Dividend Income $ 15,744 $ 15,673 $ 15,101 $ 14,673 Interest Expense 970 1,034 871 712 Net Interest and Dividend Income 14,774 14,639 14,230 13,961 Provision for (Release of) Loan Losses 2 310 20 30 Net Interest and Dividend Income after Provision for Loan Losses 14,772 14,329 14,210 13,931 Noninterest Income 7,575 7,977 7,345 7,327 Noninterest Expense 15,012 14,602 14,732 14,946 Income Before Taxes 7,335 7,704 6,823 6,312 Income Taxes 6,371 2,694 2,309 1,984 Net Income $ 964 $ 5,010 $ 4,514 $ 4,328 Share Data: Average Shares Outstanding, Basic 4,038,948 4,037,026 4,034,397 4,011,925 Average Shares Outstanding, Diluted 4,073,707 4,070,332 4,068,360 4,050,791 Basic Earnings Per Share $ 0.24 $ 1.23 $ 1.11 $ 1.07 Diluted Earnings Per Share $ 0.23 $ 1.22 $ 1.10 $ 1.06 |
Condensed Financial Statements
Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Statements of Parent Company | 25. Condensed Financial Statements of Parent Company The condensed balance sheets of Cambridge Bancorp, the Parent Company, as of December 31, 2018 Condensed Balance Sheet December 31, 2018 2017 (dollars in thousands) ASSETS Cash $ 4,412 $ 3,735 Investment in subsidiary, at equity 162,614 144,222 Total assets $ 167,026 $ 147,957 SHAREHOLDERS’ EQUITY Shareholders’ equity $ 167,026 $ 147,957 Total shareholders’ equity $ 167,026 $ 147,957 Condensed Statements of Income For the Year Ended December 31, 2018 2017 2016 (dollars in thousands) Income Dividends from subsidiary $ 8,615 $ 8,052 $ 3,412 Total income 8,615 8,052 3,412 Expenses Other expenses 116 — — Total expenses 116 — — Income before income taxes and equity in undistributed income of subsidiary 8,499 8,052 3,412 Income tax benefit (32 ) — — Income of parent company 8,531 8,052 3,412 Equity in undistributed income of subsidiary 15,350 6,764 13,484 Net income $ 23,881 $ 14,816 $ 16,896 Condensed Statements of Cash Flows For the Year Ended December 31, 2018 2017 2016 (dollars in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 23,881 $ 14,816 $ 16,896 Adjustments to reconcile net income to net cash provided by operating activities Undistributed income of subsidiary (15,350 ) (6,764 ) (13,484 ) Net cash provided by operating activities 8,531 8,052 3,412 CASH FLOWS FROM BY FINANCING ACTIVITIES: Proceeds from the issuance of common stock 761 1,522 2,020 Repurchase of common stock (574 ) (470 ) (1,560 ) Cash dividends paid on common stock (8,041 ) (7,582 ) (7,428 ) Net cash used in financing activities (7,854 ) (6,530 ) (6,968 ) Net increase (decrease) in cash 677 1,522 (3,556 ) Cash at beginning of year 3,735 2,213 5,769 Cash at end of year $ 4,412 $ 3,735 $ 2,213 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for loan losses and the valuation of deferred tax assets are particularly subject to change. |
Reclassifications | Reclassifications Certain amounts in the prior year’s financial statements may have been reclassified to conform with the current year’s presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, amounts due from banks, and overnight investments. |
Investment Securities | Investment Securities Investment securities are classified as either ‘held to maturity’ or ‘available for sale’ in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 320, “ Investments – Debt and Equity Securities. Debt and equity securities not classified as held to maturity are classified as available for sale and carried at fair value with unrealized after-tax gains and losses reported net as a separate component of shareholders’ equity. The Company classifies its securities based on its intention at the time of purchase. Declines in the fair value of investment securities below their amortized cost that are deemed to be other-than-temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income. In estimating other-than-temporary impairment losses, management considers: (1) the length of time and the extent to which the fair value has been less than cost; (2) the financial condition and near-term prospects of the issuer; and (3) 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. |
Loans and the Allowance for Loan Losses | Loans and the Allowance for Loan Losses Loans are reported at the amount of their outstanding principal, including deferred loan origination fees and costs, reduced by unearned discounts, and the allowance for loan losses. Loan origination fees, net of related direct incremental loan origination costs, are deferred and amortized as an adjustment to yield over the life of the related loans. Unearned discount is recognized as an adjustment to the loan yield, using the interest method over the contractual life of the related loan. When a loan is paid off, the unamortized portion of net fees or unearned discount is recognized as interest income. Loans are considered delinquent when a payment of principal and/or interest becomes past due 30 days following its scheduled payment due date. Loans on which the accrual of interest has been discontinued are designated non-accrual loans. Accrual of interest income is discontinued when concern exists as to the collectability of principal or interest or typically when a loan becomes over 90 days delinquent. Additionally, when a loan is placed on non-accrual status, all interest previously accrued but not collected is reversed against current period income. Loans are removed from non-accrual when they become less than 90 days past due and when concern no longer exists as to the collectability of principal or interest. Interest collected on non-accruing loans is either applied against principal or reported as income according to management’s judgment as to the collectability of principal. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Under certain circumstances, the Company may restructure the terms of a loan as a concession to a borrower. These restructured loans are generally also considered impaired loans. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. The provision for loan losses and the level of the allowance for loan losses reflects management’s estimate of probable loan losses inherent in the loan portfolio at the balance sheet date. Management uses a systematic process and methodology to establish the allowance for loan losses each quarter. To determine the total allowance for loan losses, an estimate is made by management of the allowance needed for each of the following segments of the loan portfolio: (a) residential mortgage loans, (b) commercial mortgage loans, (c) home equity loans, (d) commercial & industrial loans, and (e) consumer loans. Portfolio segments are further disaggregated into classes of loans. The establishment of the allowance for each portfolio segment is based on a process that evaluates the risk characteristics relevant to each portfolio segment and takes into consideration multiple internal and external factors. Internal factors include, but are not limited to, (a) historic levels and trends in charge-offs, delinquencies, risk ratings, and foreclosures, (b) level and changes in industry, geographic, and credit concentrations, (c) underwriting policies and adherence to such policies, (d) the growth and vintage of the portfolios, and (e) the experience of, and any changes in, lending and credit personnel. External factors include, but are not limited to, (a) conditions and trends in the local and national economy and (b) levels and trends in national delinquent and non-performing loans. The Bank evaluates certain loans individually for specific impairment. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Loans are selected for evaluation based upon internal risk rating, delinquency status, or non-accrual status. A specific allowance amount is allocated to an individual loan when such loan has been deemed impaired and when the amount of the probable loss is able to be estimated. Estimates of loss may be determined by the present value of anticipated future cash flows, the loan’s observable fair market value, or the fair value of the collateral, if the loan is collateral dependent. Risk characteristics relevant to each portfolio segment are as follows: Residential mortgage and home equity loans – The Bank generally does not originate loans in these segments with a loan-to-value ratio greater than 80%, unless covered by private mortgage insurance, and in all cases not greater than a loan-to-value ratio of 97%. The Bank does not originate subprime loans. Loans in these segments are secured by one-to-four family residential real estate, and repayment is primarily dependent on the credit quality of the individual borrower. Commercial mortgage loans – This includes multi-family properties and construction. The Bank generally does not originate loans in this segment with a loan-to-value ratio greater than 75% . Loans in this segment are secured by owner-occupied and nonowner-occupied commercial real estate, and repayment is primarily dependent on the cash flows of the property (if nonowner-occupied) or of the business (if owner-occupied). Commercial loans – Loans in this segment are made to businesses and are generally secured by equipment, accounts receivable, or inventory, as well as the personal guarantees of the principal owners of the business, and repayment is primarily dependent on the cash flows generated by the business. Consumer loans – Loans in this segment are made to individuals and can be secured or unsecured. Repayment is primarily dependent on the credit quality of the individual borrower. The majority of the Bank’s loans are concentrated in Eastern Massachusetts and therefore the overall health of the local economy, including unemployment rates, vacancy rates, and consumer spending levels, can have a material effect on the credit quality of all of these portfolio segments. The process to determine the allowance for loan losses requires management to exercise considerable judgment regarding the risk characteristics of the loan portfolio segments and the effect of relevant internal and external factors. The provision for loan losses charged to income is based on management’s judgment of the amount necessary to maintain the allowance at a level to provide for probable inherent loan losses. When management believes that the collectability of a loan’s principal balance, or portions thereof, is unlikely, the principal amount is charged against the allowance for loan losses. Recoveries on loans that have been previously charged off are credited to the allowance for loan losses as received. The allowance is an estimate, and ultimate losses may vary from current estimates. As adjustments become necessary, they are reported in the results of operations through the provision for loan losses in the period in which they become known. Residential mortgage loans originated and intended for sale in the secondary market are classified as held for sale at the time of their origination and are carried at the lower of cost or fair value on an individual loan basis. Changes in fair value relating to loans held for sale below the loans cost basis are charged against gain on loans held for sale. Gains and losses on the actual sale of the residential loans are recorded in earnings as net gains (losses) on loans held for sale on the consolidated statements of income. |
Bank Owned Life Insurance | Bank Owned Life Insurance Bank owned life insurance (“BOLI”) represents life insurance on the lives of certain active and former employees who have provided positive consent allowing the Bank to be the beneficiary of such policies. Since the Bank is the primary beneficiary of the insurance policies, increases in the cash value of the policies, as well as insurance proceeds received, are recorded in other noninterest income, and are not subject to income taxes. Applicable regulations generally limit our investment in bank-owned life insurance to 25% of our Tier 1 capital plus our allowance for loan losses. The Bank reviews the financial strength of the insurance carriers prior to the purchase of BOLI and at least annually thereafter. |
Banking Premises and Equipment | Banking Premises and Equipment Land is stated at cost. Buildings, leasehold improvements, and equipment are stated at cost, less accumulated depreciation and amortization, which is computed using the straight-line method over the estimated useful lives of the assets or the terms of the leases, if shorter. The cost of ordinary maintenance and repairs is charged to expense when incurred. |
Advertising Costs | Marketing Expense Advertising costs are expensed as incurred. |
Other Real Estate Owned | Other Real Estate Owned Other real estate owned (“OREO”) consists of properties formerly pledged as collateral to loans, which have been acquired by the Bank through foreclosure proceedings or acceptance of a deed in lieu of foreclosure. Upon transfer of a loan to foreclosure status, an appraisal is obtained and any excess of the loan balance over the fair value, less estimated costs to sell, is charged against the allowance for loan losses. Expenses and subsequent adjustments to the fair value are treated as other operating expense. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. Goodwill and intangible assets that are not amortized are tested for impairment, based on their fair values, at least annually. Identifiable intangible assets that are subject to amortization are also reviewed for impairment based on their fair value. Any impairment is recognized as a charge to earnings and the adjusted carrying amount of the intangible asset becomes its new accounting basis. The remaining useful life of an intangible asset that is being amortized is also evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. Mortgage servicing assets are recognized as separate assets when rights are acquired through purchase or through sale of financial assets with servicing rights retained. The fair value of the servicing rights is determined by estimating the present value of future net cash flows, taking into consideration market loan prepayment speeds, discount rates, servicing costs, and other economic factors. For purposes of measuring impairment, the underlying loans are stratified into relatively homogeneous pools based on predominant risk characteristics which include product type (i.e., fixed or adjustable) and interest rate bands. If the aggregate carrying value of the capitalized mortgage servicing rights for a stratum exceeds its fair value, MSR impairment is recognized in earnings through a valuation allowance for the difference. As the loans are repaid and net servicing revenue is earned, the MSR asset is amortized as an offset to loan servicing income. Servicing revenues are expected to exceed this amortization expense. However, if actual prepayment experience or defaults exceed what was originally anticipated, net servicing revenues may be less than expected and mortgage servicing rights may be impaired. |
Income Taxes | Income Taxes The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, the Commonwealth of Massachusetts, the state of New Hampshire, and other states as required. For the year 2018, the Company will file taxes in Massachusetts and New Hampshire. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Deferred tax assets are reviewed quarterly and reduced by a valuation allowance if, based upon the information available, it is more likely than not that some or all of the deferred tax assets will not be realized. Interest and penalties related to unrecognized tax benefits, if incurred, are recognized as a component of income tax expense. The Tax Cuts and Jobs Act of 2017 was enacted on December 22, 2017. Effective in 2018, the change in tax law reduced the Company’s statutory federal tax rate from 35% to 21%. The Company recorded a one-time non-cash write-down of net deferred tax assets of $3.9 million as these deferred tax assets were required to be re-measured using the new lower tax rate in 2017. |
Fee Revenue | Fee Revenue Wealth management revenues include asset-based revenues (trust and investment advisory fees) that are primarily accrued as earned based upon a percentage of asset values under management, or administration. Also included in wealth management revenues are transaction-based revenues (financial planning fees and other service fees), which are recognized as revenue to the extent that services have been completed. Fee revenue from deposit service charges is generally recognized when earned. |
Pension and Retirement Plans | Pension and Retirement Plans The Company sponsored a defined benefit pension plan (the “Pension Plan”) and a postretirement health care plan covering substantially all employees hired before May 2, 2011. On October 23, 2017, the Company announced its decision to freeze the accrual of benefits for all participants in the Pension Plan, effective as of December 31, 2017. Benefits for the Pension Plan were based primarily on years of service and the employee’s average monthly pay during the five highest consecutive plan years of the employee’s final 10 years. Benefits for the postretirement health care plan are based on years of service. Expense for both of these plans is recognized over the employee’s service life utilizing the projected unit credit actuarial cost method. The Company also sponsors non-qualified retirement programs that provide supplemental retirement benefits to certain current and former executives. Prior to 2016, the Company provided individual non-qualified defined benefit supplemental executive retirement plans (“DB SERPs”) to certain executives. The DB SERPs generally provide for an annual benefit payable in equal monthly installments following the executive’s retirement and continuing for at least the remainder of his or her lifetime, with such annual benefit generally based on the executive’s years of service and his or her highest three consecutive years of base salary and bonus. In 2016, the Company’s Board discontinued the use of DB SERPs for new entrants to the Company’s non-qualified retirement programs. Instead, new entrants are provided with individual non-qualified defined contribution supplemental executive retirement plans (“DC SERPs”). Under the DC SERPs, the Company contributes an amount equal to 10% of the executive’s base salary and bonus to his or her account under the Company’s non-qualified deferred compensation plan, the Executive Deferred Compensation Plan. Expense for the DB SERPs is recognized over the executive’s service life utilizing the projected unit credit actuarial cost method. Expense for the DC SERPs is recognized as incurred. The Company maintains a Profit Sharing Plan (“PSP”) that provides for deferral of federal and state income taxes on employee contributions allowed under Section 401(k) of federal law. Beginning in 2018, the Company matched employee contributions up to 100% of the first 4% of each participant’s salary, , up from 3% in 2017. Each year, the Company may also make a discretionary contribution to the PSP. |
Share-Based Compensation | Share-Based Compensation Share-based compensation plans provide for stock option awards, restricted stock awards, nonvested time based share units, and nonvested performance based share units. Compensation expense for nonvested restricted stock awards is recognized over the service period based on the fair value at the date of grant. Awards of nonvested time based share units and nonvested performance share units are valued at the fair market value of the Company’s common stock as of the award date. Nonvested performance share unit compensation expense is based on the most recent performance assumption available and is adjusted as assumptions change. If the goals are not met, vesting does not occur and no compensation cost will be recognized and any recognized compensation costs will be reversed. Stock-based awards that do not require future service are expensed in the year of grant. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Derivatives are recognized as either assets or liabilities on the balance sheet and are measured at fair value. The accounting for changes in the fair value of such derivatives depends on the intended use of the derivative and resulting designation. For derivatives not designated as hedges, changes in fair value of the derivative instruments are recognized in earnings in noninterest income. For derivatives designated as fair value hedges, changes in the fair value of such derivatives are recognized in earnings together with the changes in the fair value of the related hedged item. The net amount, if any, represents hedge ineffectiveness and is reflected in earnings. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is recorded in other comprehensive income (loss) and recognized in earnings when the hedged transaction affects earnings. The ineffective portion of changes in the fair value of cash flow hedges is recognized directly in earnings. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as 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. The Company measures the fair values of its financial instruments in accordance with accounting guidance that requires an entity to base fair value on exit price and maximize the use of observable inputs and minimize the use of unobservable inputs to determine the exit price. ASC 820, “ Fair Value Measurements and Disclosures” Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The type of financial instruments included in Level 1 are highly liquid cash instruments with quoted prices such as government or agency securities, listed equities and money market securities, as well as listed derivative instruments. Level 2 – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these financial instruments includes cash instruments for which quoted prices are available but traded less frequently, derivative instruments whose fair value has been derived using a model where inputs to the model are directly observable in the market, or can be derived principally from or corroborated by observable market data, and instruments that are fair valued using other financial instruments, the parameters of which can be directly observed. Instruments which are generally included in this category are corporate bonds and loans, mortgage whole loans, municipal bonds and over-the-counter derivatives. Level 3 – Instruments that have little to no pricing observability as of the reported date. These financial instruments do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment to estimation. Instruments that are included in this category generally include certain commercial mortgage loans, certain private equity investments, distressed debt, non-investment grade residual interests in securitizations, as well as certain highly structured over-the-counter derivative contracts. |
Earnings per Common Share | Earnings per Common Share Earnings per common share is computed using the two-class method prescribed under ASC Topic 260, “Earnings Per Share.” ASC Topic 260 provides that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. We have determined that our outstanding non-vested stock awards are participating securities. Under the two-class method, basic earnings per common share is computed by dividing net earnings allocated to common stock by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of common stock equivalents. A reconciliation of the weighted-average shares used in calculating basic earnings per common share and the weighted average common shares used in calculating diluted earnings per common share for the reported periods is provided in Note 21 - Earnings Per Share. |
Subsequent Events | Subsequent Events Management has reviewed events occurring through March 18, 2019, the date the consolidated financial statements were issued and determined that no subsequent events occurred requiring adjustment to or disclosure in these financial statements. |
Recently Issued and Adopted Accounting Standards | Recently Issued and Adopted Accounting Standards Accounting Standards Update 2018-16 - Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes Accounting Standards Update 2018-15 - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . Accounting Standards Update 2018-14 - Changes to the Disclosure Requirements for Defined Benefit Plans . Accounting Standards Update 2018-13 - Changes to the Disclosure Requirements for Fair Value Measurement . Accounting Standards Update 2018-07 - Improvements to Nonemployee Share-Based Payment Accounting Revenue from Contracts with Customers Accounting Standards Update No. 2018-02 - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income • a description of the accounting policy for releasing income tax effects from AOCI, • whether we elect to reclassify the stranded income tax effects from the Tax Cuts and Jobs Act, and • information about the other income tax effects that are reclassified. The amendments in this ASU affect any organization that is required to apply the provisions of Topic 220, Income Statement —Reporting Comprehensive Income Accounting Standard Update No. Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities h is s e e s ta da r a a l l o c p a i e b t a l i e i e g a c c o n t i n a r i s a n a e ac t i v i t i es d c c o s a c m l e x i t a p l y i h d g a c c o n t i n T s ta d a r r q i r e c p a n i e c h a n h r c o n i t i a r s n t a t i o o t f c t h d g a c c o n ti b y • e li m i n a ti t q u i r e t s e a r a t l m a s r a p e g i e ff e c ti v n s s a n • re q i r i c m t p e s n a h l m n e a c o n i n a a e c e a a i n c m s t a e l i e d e i The standard also permits hedge accounting for strategies for which hedge accounting was not historically permitted and includes new alternatives for measuring the hedged item for fair value hedges of interest rate risk. Furthermore, the standard eases the requirements for effectiveness testing, hedge documentation, applying the critical terms match method, and introduces new alternatives that will permit companies to reduce the risk of material error corrections if they misapply the shortcut method. The new accounting standard is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years; early adoption is permitted. The new standard requires a modified retrospective transition method in which the Company will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. The Company early adopted the standard during the fourth quarter of 2018, using a modified retrospective transition method, and it did not have an effect on our consolidated balance sheets, statements of income, and cash flows. Accounting Standards Update No. 2017-08 - Premium Amortization on Purchased Callable Debt Securities Accounting Standards Update No. 2017-07 - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost Note 13 – Pension and Retirement Plans Accounting Standards Update No. 2016-18 - Restricted Cash Accounting Standards Update No. 2016-15 - Classification of Certain Cash Receipts and Cash Payments . Accounting Standards Update No. 2016-13 - Financial Instruments - Measurement of Credit Losses on Financial Instruments Accounting Standards Update No. 2016-02 - Leases Accounting Standards Update No. 2016-01 - Recognition and Measurement of Financial Assets and Financial Liabilities • requires equity investments (with certain exceptions) to be measured at fair value with changes in fair value recognized in net income, • requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, • requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the statement of condition or the accompanying notes to the financial statements, • clarifies that an entity must assess valuation allowances on a deferred tax asset related to available for sale debt securities in combination with its other deferred tax assets. • requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, and • eliminates the requirement for public entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the statement of condition. The amendments, in general, are required to be applied by means of a cumulative-effect adjustment on the statement of condition as of the beginning of the period of adoption. The Company adopted the standard on January 1, 2018, and it did not have a material impact on our consolidated balance sheets, statements of income, or cash flows. Accounting Standards Update No. 2014-09 - Revenue from Contracts with Customers On January 1, 2018, the Company adopted ASU No. 2014-09 and all subsequent ASUs that modified Topic 606. Topic 606 is applicable to noninterest revenue streams such as trust and asset management income, deposit related fees, interchange fees, and merchant income. The Company completed its overall assessment of revenue streams and review of related contracts potentially affected by the ASU, including trust and asset management fees, deposit related fees, and other income within noninterest income. Based on this assessment, the Company concluded that ASU 2014-09 did not materially change the method in which the Company currently recognizes revenue for these revenue streams. The Company adopted ASU 2014-09 and its related amendments utilizing the modified retrospective approach. Since there was no net income impact upon adoption of the new guidance, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Noninterest income considered in-scope of Topic 606 is discussed below. Wealth management and trust fees The Company earns wealth management fees for providing investment management, trust administration, and financial planning services to clients. The Company’s performance obligation under these contracts is satisfied over time as the wealth management services are provided. Fees are recognized monthly based on the average monthly value of the assets under management and the applicable fee rate, or at a fixed annual rate, depending on the terms of the contract. No performance-based incentives are earned on wealth management contracts. The Company earns trust fees for serving as trustee for certain clients. As trustee, the Company serves as a fiduciary, administers the client’s trust and, in some cases, manages the assets of the trust. The Company’s performance obligation under these agreements is satisfied over time as the administration and management services are provided. Fees are recognized monthly based on a percentage of the market value of the account, or at a fixed annual rate, as outlined in the agreement. The Company also earns fees for trust related activities. The Company’s performance obligation under these agreements is satisfied at a point in time and recognized when these services have been performed. All of the wealth management and trust fee income on the consolidated statement of income is considered in-scope of Topic 606. Other banking fee income The Company charges a variety of fees to its clients for services provided on the deposit and deposit management related accounts. Each fee is either transaction-based or assessed monthly. The types of fees include service charges on accounts, overdraft fees, wire transfer fees, maintenance fees, ATM fee charges, and other miscellaneous charges related to the accounts. These fees are not governed by individual contracts with clients. They are charges to clients based on disclosures presented to clients upon opening these accounts along with updated disclosures when changes are made to the fee structures. The transaction-based fees are recognized in revenue when charged to the client based on specific activity on the client’s account. Monthly service and maintenance charges are recognized in the month they are earned and are charged directly to the client’s account. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Carrying Amounts of Securities and Their Approximate Fair Values | Investment securities have been classified in the accompanying consolidated balance sheets according to management’s intent. The carrying amounts of securities and their approximate fair values were as follows: December 31, 2018 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) Available for sale securities U.S. GSE obligations $ 75,004 $ — $ (965 ) $ 74,039 $ 90,021 $ — $ (1,230 ) $ 88,791 Mortgage-backed securities 92,271 118 (3,121 ) 89,268 113,184 248 (2,806 ) 110,626 Corporate debt securities 5,015 — (159 ) 4,856 5,034 12 (45 ) 5,001 Mutual funds — — — — 672 — (73 ) 599 Total available for sale securities $ 172,290 $ 118 $ (4,245 ) $ 168,163 $ 208,911 $ 260 $ (4,154 ) $ 205,017 Held to maturity securities U.S. GSE obligations $ 32,571 $ — $ (238 ) $ 32,333 $ 32,572 $ — $ (166 ) $ 32,406 Mortgage-backed securities 168,118 134 (2,290 ) 165,962 117,155 7 (906 ) 116,256 Corporate debt securities 6,972 — (107 ) 6,865 1,998 4 — 2,002 Municipal securities 75,208 1,297 (355 ) 76,150 80,463 2,544 (117 ) 82,890 Total held to maturity securities $ 282,869 $ 1,431 $ (2,990 ) $ 281,310 $ 232,188 $ 2,555 $ (1,189 ) $ 233,554 Total $ 455,159 $ 1,549 $ (7,235 ) $ 449,473 $ 441,099 $ 2,815 $ (5,343 ) $ 438,571 |
Schedule of Amortized Cost and Fair Value of Debt Securities, Aggregated By Earlier of Guaranteed Call Date or Contractual Maturity | The amortized cost and fair value of debt investments, aggregated by contractual maturity, are shown below. Maturities of mortgage-backed securities do not take into consideration scheduled amortization or prepayments. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Within One Year After One, But Within Five Years After Five, But Within Ten Years After Ten Years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value At December 31, 2018 (dollars in thousands) Available for sale securities U.S. GSE obligations $ 10,004 $ 9,946 $ 65,000 $ 64,093 $ — $ — $ — $ — $ 75,004 $ 74,039 Mortgage-backed securities — — 78 80 33,768 32,905 58,425 56,283 92,271 89,268 Corporate debt securities 2,008 1,994 3,007 2,862 — — — — 5,015 4,856 Total available for sale securities $ 12,012 $ 11,940 $ 68,085 $ 67,035 $ 33,768 $ 32,905 $ 58,425 $ 56,283 $ 172,290 $ 168,163 Held to maturity securities U.S. GSE obligations $ 5,001 $ 4,991 $ 27,570 $ 27,342 $ — $ — $ — $ — $ 32,571 $ 32,333 Mortgage-backed securities 50 51 — — 34,434 33,958 133,634 131,953 168,118 165,962 Corporate debt securities — — 6,972 6,865 — — — — 6,972 6,865 Municipal securities 4,630 4,654 13,259 13,427 41,390 42,273 15,929 15,796 75,208 76,150 Total held to maturity securities $ 9,681 $ 9,696 $ 47,801 $ 47,634 $ 75,824 $ 76,231 $ 149,563 $ 147,749 $ 282,869 $ 281,310 Total $ 21,693 $ 21,636 $ 115,886 $ 114,669 $ 109,592 $ 109,136 $ 207,988 $ 204,032 $ 455,159 $ 449,473 |
Gross Unrealized Losses of Aggregated by Investment Category and Length of Time that Individual Securities have been in Continuous Loss Position | The following tables show the Company’s securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position: December 31, 2018 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (dollars in thousands) Temporarily Impaired Securities Available for sale securities U.S. GSE obligations $ — $ — $ 74,039 $ (965 ) $ 74,039 $ (965 ) Mortgage-backed securities — — 86,815 (3,121 ) 86,815 (3,121 ) Corporate debt securities 902 (98 ) 3,954 (61 ) 4,856 (159 ) Total available for sale securities $ 902 $ (98 ) $ 164,808 $ (4,147 ) $ 165,710 $ (4,245 ) Held to maturity securities U.S. GSE obligations $ 4,995 $ (5 ) $ 27,338 $ (233 ) $ 32,333 $ (238 ) Mortgage-backed securities 30,719 (216 ) 93,225 (2,074 ) 123,944 (2,290 ) Corporate debt securities 6,865 (107 ) — — 6,865 (107 ) Municipal securities 8,484 (82 ) 8,313 (273 ) 16,797 (355 ) Total held to maturity securities $ 51,063 $ (410 ) $ 128,876 $ (2,580 ) $ 179,939 $ (2,990 ) Total temporarily impaired securities $ 51,965 $ (508 ) $ 293,684 $ (6,727 ) $ 345,649 $ (7,235 ) December 31, 2017 Less than 12 months 12 months or longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (dollars in thousands) Temporarily Impaired Securities Available for sale securities U.S. GSE obligations $ 4,979 $ (21 ) $ 83,812 $ (1,209 ) $ 88,791 $ (1,230 ) Mortgage-backed securities 12,526 (157 ) 94,663 (2,649 ) 107,189 (2,806 ) Corporate debt securities — — 3,990 (45 ) 3,990 (45 ) Mutual funds — — 599 (73 ) 599 (73 ) Total available for sale securities $ 17,505 $ (178 ) $ 183,064 $ (3,976 ) $ 200,569 $ (4,154 ) Held to maturity securities U.S. GSE obligations $ 27,407 $ (166 ) $ — $ — $ 27,407 $ (166 ) Mortgage-backed securities 115,926 (906 ) 3 — 115,929 (906 ) Corporate debt securities — — — — — — Municipal securities 2,041 (19 ) 6,459 (98 ) 8,500 (117 ) Total held to maturity securities $ 145,374 $ (1,091 ) $ 6,462 $ (98 ) $ 151,836 $ (1,189 ) Total temporarily impaired securities $ 162,879 $ (1,269 ) $ 189,526 $ (4,074 ) $ 352,405 $ (5,343 ) |
Summary of Gains (Losses) from Sale of Investment Securities | The following table sets forth information regarding sales of investment securities and the resulting gains or losses from such sales: For the Year Ended December 31, 2018 2017 2016 (dollars in thousands) Amortized cost of securities sold $ 700 $ 77,372 $ 17,632 Gain/(loss) realized on securities sold 2 (3 ) 438 Net proceeds from securities sold $ 702 $ 77,369 $ 18,070 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans Outstanding by Category | Loans outstanding are detailed by category as follows: December 31, 2018 December 31, 2017 (dollars in thousands) Residential mortgage Mortgages - fixed rate $ 293,267 $ 298,851 Mortgages - adjustable rate 309,656 239,027 Deferred costs net of unearned fees 1,408 1,042 Total residential mortgages 604,331 538,920 Commercial mortgage Mortgages - nonowner occupied 654,394 562,203 Mortgages - owner occupied 59,335 35,343 Construction 44,146 35,904 Deferred costs net of unearned fees 82 199 Total commercial mortgages 757,957 633,649 Home equity Home equity - lines of credit 63,421 70,326 Home equity - term loans 5,665 3,863 Deferred costs net of unearned fees 250 255 Total home equity 69,336 74,444 Commercial & industrial Commercial & industrial 93,728 65,305 Deferred costs (fees) net of unearned fees (16 ) (10 ) Total commercial & industrial 93,712 65,295 Consumer Secured 33,252 37,272 Unsecured 1,171 1,303 Deferred costs net of unearned fees 13 16 Total consumer 34,436 38,591 Total loans $ 1,559,772 $ 1,350,899 |
Non-performing Loans Disaggregated by Loan Category | The following tables set forth information regarding non-performing loans disaggregated by loan category: December 31, 2018 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Total (dollars in thousands) Non-performing loans: Non-accrual loans $ 512 $ — $ 13 $ — $ — $ 525 Loans past due >90 days, but still accruing — — — — — — Troubled debt restructurings 111 — — 6 — 117 Total $ 623 $ — $ 13 $ 6 $ — $ 642 December 31, 2017 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Total (dollars in thousands) Non-performing loans: Non-accrual loans $ 918 $ 213 $ 17 $ — $ — $ 1,148 Loans past due >90 days, but still accruing — — — — — — Troubled debt restructurings 121 — — 29 — 150 Total $ 1,039 $ 213 $ 17 $ 29 $ — $ 1,298 |
Loans Receivable Disaggregated by Credit Quality Indicator | The following tables contain period-end balances of loans receivable disaggregated by credit quality indicator: December 31, 2018 Residential Mortgages Home Equity Consumer (dollars in thousands) Credit risk profile based on payment activity: Performing $ 603,708 $ 69,323 $ 34,436 Non-performing 623 13 — Total $ 604,331 $ 69,336 $ 34,436 Commercial Mortgages Commercial & Industrial Credit risk profile by internally assigned grade: 1-6 (Pass) $ 753,338 $ 85,821 7 (Special Mention) 4,619 4,186 8 (Substandard) — 3,705 9 (Doubtful) — — 10 (Loss) — — Total $ 757,957 $ 93,712 December 31, 2017 Residential Mortgages Home Equity Consumer (dollars in thousands) Credit risk profile based on payment activity: Performing $ 537,881 $ 74,427 $ 38,591 Non-performing 1,039 17 — Total $ 538,920 $ 74,444 $ 38,591 Commercial Mortgages Commercial & Industrial Credit risk profile by internally assigned grade: 1-6 (Pass) $ 629,852 $ 56,755 7 (Special Mention) 3,584 8,126 8 (Substandard) 213 414 9 (Doubtful) — — 10 (Loss) — — Total $ 633,649 $ 65,295 |
Schedule of Loans Receivable Disaggregated by Past Due Status | The following tables contain period-end balances of loans receivable disaggregated by past due status: December 31, 2018 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Total Past Due Current Loans Total (dollars in thousands) Residential Mortgages $ 1,034 $ 121 $ 351 $ 1,506 $ 602,825 $ 604,331 Commercial Mortgages — — — — 757,957 757,957 Home Equity — — — — 69,336 69,336 Commercial & Industrial — — — — 93,712 93,712 Consumer loans 108 — — 108 34,328 34,436 Total $ 1,142 $ 121 $ 351 $ 1,614 $ 1,558,158 $ 1,559,772 December 31, 2017 30-59 Days Past Due 60-89 Days Past Due 90 Days or Greater Total Past Due Current Loans Total (dollars in thousands) Residential Mortgages $ 1,353 $ 706 $ 64 $ 2,123 $ 536,797 $ 538,920 Commercial Mortgages — 32 — 32 633,617 633,649 Home Equity 1 — 17 18 74,426 74,444 Commercial & Industrial — — — — 65,295 65,295 Consumer loans 176 — — 176 38,415 38,591 Total $ 1,530 $ 738 $ 81 $ 2,349 $ 1,348,550 $ 1,350,899 |
Information Pertaining to Impaired Loans | The following is information pertaining to impaired loans: For the Year Ended December 31, 2018 Carrying Value Average Carrying Value Unpaid Principal Balance Related Allowance Interest Income Recognized (dollars in thousands) With no required reserve recorded: Commercial and industrial $ 6 $ 17 $ 6 $ — $ 1 Commercial mortgage — — — — — Residential mortgage 634 647 786 — 4 Home equity 100 104 135 — 1 Total 740 768 927 — 6 With required reserve recorded: Commercial and industrial — — — — — Commercial mortgage — — — — — Residential mortgage — — — — — Home equity — — — — — Total — — — — — Total: Commercial and industrial 6 17 6 — 1 Commercial mortgage — — — — — Residential mortgage 634 647 786 — 4 Home equity 100 104 135 — 1 Total $ 740 $ 768 $ 927 $ — $ 6 For the Year Ended December 31, 2017 Carrying Value Average Carrying Value Unpaid Principal Balance Related Allowance Interest Income Recognized (dollars in thousands) With no required reserve recorded: Commercial and industrial $ 29 $ 36 $ 29 $ — $ 2 Commercial mortgage 213 224 227 — 3 Residential mortgage 904 931 1,103 — — Home equity 86 91 116 — — Total 1,232 1,282 1,475 — 5 With required reserve recorded: Commercial and industrial — — — — — Commercial mortgage — — — — — Residential mortgage 64 66 64 93 1 Home equity — — — — — Total 64 66 64 93 1 Total: Commercial and industrial 29 36 29 — 2 Commercial mortgage 213 224 227 — 3 Residential mortgage 968 997 1,167 93 1 Home equity 86 91 116 — — Total $ 1,296 $ 1,348 $ 1,539 $ 93 $ 6 For the Year Ended December 31, 2016 Carrying Value Average Carrying Value Unpaid Principal Balance Related Allowance Interest Income Recognized (dollars in thousands) With no required reserve recorded: Commercial and industrial $ — $ — $ — $ — $ — Commercial mortgage — — — — — Residential mortgage 528 542 687 — — Home equity 102 105 126 — 1 Total 630 647 813 — 1 With required reserve recorded: Commercial and industrial 289 297 295 114 2 Commercial mortgage — — — — — Residential mortgage 499 505 509 76 21 Home equity — — — — — Total 788 802 804 190 23 Total: Commercial and industrial 289 297 295 114 2 Commercial mortgage — — — — — Residential mortgage 1,027 1,047 1,196 76 21 Home equity 102 105 126 — 1 Total $ 1,418 $ 1,449 $ 1,617 $ 190 $ 24 |
Summary of Changes in Allowance for Loan Losses Disaggregated by Loan Type | The following tables contain changes in the allowance for loan losses disaggregated by loan type for the periods noted: For the Year Ended December 31, 2018 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Impaired Total (dollars in thousands) Allowance for loan losses: Balance at December 31, 2017 $ 5,047 $ 8,289 $ 630 $ 946 $ 315 $ 93 $ 15,320 Charge-offs — — — (73 ) (36 ) — (109 ) Recoveries — — — 48 7 — 55 Provision for (Release of) (101 ) 1,337 (113 ) 494 (22 ) (93 ) 1,502 Balance at December 31, 2018 $ 4,946 $ 9,626 $ 517 $ 1,415 $ 264 $ — $ 16,768 For the Year Ended December 31, 2017 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Impaired Total (dollars in thousands) Allowance for loan losses: Balance at December 31, 2016 $ 4,898 $ 8,451 $ 651 $ 807 $ 264 $ 190 $ 15,261 Charge-offs — — — (284 ) (39 ) — (323 ) Recoveries — — — 13 7 — 20 Provision for (Release of) 149 (162 ) (21 ) 410 83 (97 ) 362 Balance at December 31, 2017 $ 5,047 $ 8,289 $ 630 $ 946 $ 315 $ 93 $ 15,320 For the Year Ended December 31, 2016 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Unallocated Impaired Total (dollars in thousands) Allowance for loan losses: Balance at December 31, 2015 $ 5,244 $ 8,094 $ 699 $ 615 $ 354 $ 11 $ 174 $ 15,191 Change in methodology 336 (377 ) (3 ) 136 (92 ) — — — Charge-offs — — — (71 ) (33 ) — — (104 ) Recoveries 13 7 1 14 7 — — 42 Provision for (Release of) (695 ) 727 (46 ) 113 28 (11 ) 16 132 Balance at December 31, 2016 $ 4,898 $ 8,451 $ 651 $ 807 $ 264 $ — $ 190 $ 15,261 |
Summary of Allowance for Loan Losses and Related Loans Receivable Disaggregated by Impairment Method | The following tables contain period-end balances of the allowance for loan losses and related loans receivable disaggregated by impairment method: December 31, 2018 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Total (dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 4,945 9,626 517 1,415 265 16,768 Total $ 4,945 $ 9,626 $ 517 $ 1,415 $ 265 $ 16,768 Loans receivable Individually evaluated for impairment $ 647 $ — $ 88 $ 5 $ — $ 740 Collectively evaluated for impairment 603,684 757,957 69,248 93,707 34,436 1,559,032 Total $ 604,331 $ 757,957 $ 69,336 $ 93,712 $ 34,436 $ 1,559,772 December 31, 2017 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Total (dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ 93 $ — $ — $ — $ — $ 93 Collectively evaluated for impairment 5,047 8,289 630 946 315 15,227 Total $ 5,140 $ 8,289 $ 630 $ 946 $ 315 $ 15,320 Loans receivable Individually evaluated for impairment $ 968 $ 213 $ 86 $ 29 $ — $ 1,296 Collectively evaluated for impairment 537,952 633,436 74,358 65,266 38,591 1,349,603 Total $ 538,920 $ 633,649 $ 74,444 $ 65,295 $ 38,591 $ 1,350,899 |
Banking Premises and Equipment
Banking Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Summary of Cost and Accumulated Depreciation and Amortization of Property, Leasehold Improvements and Equipment | A summary of the cost and accumulated depreciation and amortization of property, leasehold improvements, and equipment is presented below: December 31, Estimated 2018 2017 Useful Lives (dollars in thousands) Land $ 1,116 $ 1,116 Building and leasehold improvements 12,175 12,839 3-30 years Equipment, including vaults 11,613 11,185 3-20 years Work in process 84 9 Subtotal 24,988 25,149 Accumulated depreciation and amortization (16,410 ) (15,839 ) Total $ 8,578 $ 9,310 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Mortgage Servicing Rights | An analysis of mortgage servicing rights, which are included in other assets, follows: Mortgage Servicing Rights Valuation Allowance Total (dollars in thousands) Balance at December 31, 2015 $ 499 $ (8 ) $ 491 Mortgage servicing rights capitalized 545 — 545 Amortization charged against servicing income (202 ) — (202 ) Change in impairment reserve — (22 ) (22 ) Balance at December 31, 2016 $ 842 $ (30 ) $ 812 Mortgage servicing rights capitalized 132 — 132 Amortization charged against servicing income (151 ) — (151 ) Change in impairment reserve — — — Balance at December 31, 2017 $ 823 $ (30 ) $ 793 Mortgage servicing rights capitalized 20 — 20 Amortization charged against servicing income (147 ) — (147 ) Change in impairment reserve (30 ) 30 — Balance at December 31, 2018 $ 666 $ — $ 666 |
Mortgage Servicing Rights | |
Schedule of Aggregate Estimated Future Amortization Expense | The estimated aggregate future amortization expense for mortgage servicing rights for each of the next five years and thereafter is as follows: Year ended December 31: Future Amortization Expense (dollars in thousands) 2019 $ 84 2020 75 2021 67 2022 59 2023 52 Thereafter 329 Total $ 666 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Summary of Deposits | Deposits are summarized as follows: December 31, 2018 December 31, 2017 (dollars in thousands) Demand deposits (non-interest bearing) $ 494,492 $ 493,613 Interest bearing checking 431,702 462,957 Money market 135,585 69,259 Savings 628,212 589,741 Retail certificates of deposit under $100,000 36,223 38,068 Retail certificates of deposit $100,000 or greater 57,692 69,093 Wholesale certificates of deposit 27,504 52,669 Total deposits $ 1,811,410 $ 1,775,400 |
Scheduled Maturities of Certificates of Deposits | Certificates of deposit had the following schedule of maturities: December 31, 2018 December 31, 2017 (dollars in thousands) Less than 3 months remaining $ 24,219 $ 40,716 3 to 5 months remaining 17,486 19,107 6 to 11 months remaining 37,987 30,545 12 to 23 months remaining 28,529 42,421 24 to 47 months remaining 9,652 20,017 48 months or more remaining 3,546 7,024 Total certificates of deposit $ 121,419 $ 159,830 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Information Relating to Short-term Borrowings | Information relating to short-term borrowings is presented below: For the Year Ended December 31, 2018 2017 (dollars in thousands) FHLB of Boston short-term advances Ending balance $ 90,000 $ — Average daily balance 15,183 32,418 Highest month-end balance 90,000 110,000 Weighted average interest rate 2.47 % 1.21 % |
Schedule of Information Relating to Long-term Borrowings | Information relating to long-term borrowings is presented below: December 31, 2018 December 31, 2017 Amount Rate Amount Rate (dollars in thousands) FHLB of Boston long-term advances Due 09/01/2020; amortizing $ 3,409 1.94 % $ 3,579 1.94 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The components of income tax expense were as follows: For the Year Ended December 31, 2018 2017 2016 (dollars in thousands) Current Federal $ 5,524 $ 8,446 $ 7,551 State 2,404 2,225 1,833 Total current expense 7,928 10,671 9,384 Deferred Federal (490 ) 2,948 (645 ) State (231 ) (261 ) (183 ) Total deferred (721 ) 2,687 (828 ) Total income tax expense $ 7,207 $ 13,358 $ 8,556 |
Reconciliation of Total Income Tax Provision, Calculated at Statutory Federal Income Tax Expense in Consolidated Statements of Income | The following is a reconciliation of the total income tax provision, calculated at statutory federal income tax rates, to the income tax provision in the consolidated statements of income: For the Year Ended December 31, 2018 Rate 2017 Rate 2016 Rate (dollars in thousands) Provision at statutory rates $ 6,528 21.00 % $ 9,861 35.00 % $ 8,908 35.00 % Increase/(decrease) resulting from: State tax, net of federal tax benefit 1,717 5.52 1,277 4.53 1,073 4.22 Tax-exempt income (580 ) (1.87 ) (1,079 ) (3.83 ) (1,099 ) (4.32 ) ESOP dividends (127 ) (0.41 ) (216 ) (0.77 ) (214 ) (0.84 ) Bank owned life insurance (140 ) (0.45 ) (205 ) (0.73 ) (214 ) (0.84 ) Benefit from stock compensation (168 ) (0.54 ) (190 ) (0.67 ) — — Impact of Tax Cuts and Jobs Act — — 3,870 13.74 — — Other (23 ) (0.07 ) 40 0.15 102 0.40 Total income tax expense $ 7,207 23.18 % $ 13,358 47.42 % $ 8,556 33.62 % |
Summary of Net Deferred Tax Asset | The Company’s 2018 and 2017 net deferred tax assets were measured using 21% and consisted of the following components: December 31, 2018 December 31, 2017 (dollars in thousands) Gross deferred tax assets Allowance for loan losses $ 4,715 $ 4,306 Accrued retirement benefits 2,082 2,430 Unrealized losses on AFS securities 957 905 Incentive compensation 1,189 1,082 Equity based compensation 849 351 Rent 333 266 ESOP dividends 169 174 Other 155 164 Total gross deferred tax assets 10,449 9,678 Gross deferred tax liabilities Deferred loan origination costs (459 ) (401 ) Depreciation of premises and equipment (678 ) (667 ) Mortgage servicing rights (187 ) (223 ) Goodwill (114 ) (114 ) Derivative transactions (294 ) — Total gross deferred tax liabilities (1,732 ) (1,405 ) Net deferred tax asset $ 8,717 $ 8,273 |
Pension and Retirement Plans (T
Pension and Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Projected Benefit Obligations and Funded Status | Projected benefit obligations and funded status were as follows: Pension Plan Supplemental Retirement Plan 2018 2017 2018 2017 (dollars in thousands) Change in projected benefit obligation Obligation at beginning of year $ 43,943 $ 43,915 $ 9,204 $ 8,891 Service cost — 1,500 354 267 Interest cost 1,557 1,826 309 364 Effect of curtailment — (7,366 ) — — Actuarial loss/(gain) (3,659 ) 5,313 (499 ) 182 Benefits paid (1,319 ) (1,245 ) (538 ) (500 ) Obligation at end of year 40,522 43,943 8,830 9,204 Change in plan assets Fair value at beginning of year 45,247 39,821 — — Actual return on plan assets (1,280 ) 6,671 — — Employer contribution — — 538 500 Benefits paid (1,319 ) (1,245 ) (538 ) (500 ) Fair value at end of year 42,648 45,247 — — Funded status at end of year $ 2,126 $ 1,304 $ (8,830 ) $ (9,204 ) Projected benefit obligations and funded status were as follows: Postretirement Healthcare Plan 2018 2017 (dollars in thousands) Change in projected benefit obligation Obligation at beginning of year $ 617 $ 568 Service cost 23 19 Interest cost 22 23 Actuarial loss/(gain) (30 ) 37 Benefits paid (34 ) (30 ) Obligation at end of year 598 617 Change in plan assets Fair value at beginning of year — — Actual return on plan assets — — Employer contribution 33 30 Benefits paid (33 ) (30 ) Fair value at end of year — — Funded status at end of year $ (598 ) $ (617 ) |
Schedule of Amounts Recognized in Consolidated Balance Sheets | Amounts recognized in the consolidated balance sheets consisted of: Pension Plan Supplemental Retirement Plan 2018 2017 2018 2017 (dollars in thousands) Other assets/(liabilities) $ 2,126 $ 1,304 $ (8,830 ) $ (9,204 ) Amounts recognized in the consolidated balance sheets consisted of: Postretirement Healthcare Plan 2018 2017 (dollars in thousands) Other liabilities $ (598 ) $ (617 ) |
Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss | Amounts recognized in accumulated other comprehensive loss consisted of: Pension Plan Supplemental Retirement Plan 2018 2017 2018 2017 (dollars in thousands) Net actuarial loss/(gain) $ 5,427 $ 5,021 $ 358 $ 861 Prior service (benefit) (12 ) (16 ) — — Total $ 5,415 $ 5,005 $ 358 $ 861 Amounts recognized in accumulated other comprehensive loss consisted of: Postretirement Healthcare Plan 2018 2017 (dollars in thousands) Net actuarial (gain)/loss $ (113 ) $ (82 ) Prior service cost — — Total $ (113 ) $ (82 ) |
Certain Disaggregated Information to Retirement Plans | Certain disaggregated information related to our retirement plans were as follows: Pension Plan Supplemental Retirement Plan 2018 2017 2018 2017 (dollars in thousands) Projected benefit obligation $ 40,522 $ 43,943 $ 8,830 $ 9,204 Accumulated benefit obligation 40,522 43,943 8,567 9,028 Fair value of plan assets 42,648 45,247 — — Funded status at end of year 2,126 1,304 (8,830 ) (9,204 ) |
Components of Net Periodic Benefit Cost and Amounts Recognized in Other Comprehensive Income/ (Loss) | The components of net periodic benefit cost and amounts recognized in other comprehensive income/ (loss) were as follows: Pension Plan Supplemental Retirement Plan 2018 2017 2018 2017 (dollars in thousands) Net periodic benefit cost Service cost $ — $ 1,500 $ 354 $ 267 Interest cost 1,557 1,826 309 364 Expected return on assets (2,891 ) (2,741 ) — — Amortization of prior service credit (4 ) (4 ) — — Amortization of net actuarial loss/(gain) 106 794 4 — Net periodic benefit cost (1,232 ) 1,375 667 631 Amounts recognized in other comprehensive income/( loss) Net actuarial loss/(gain) 512 1,383 (499 ) 182 Amortization of prior service credit 4 4 (4 ) — Amortization of net actuarial gain (106 ) (794 ) — — Curtailment gain — (7,366 ) — — Total recognized in other comprehensive income/( loss) 410 (6,773 ) (503 ) 182 Total recognized in net periodic benefit cost and other comprehensive income/( loss) $ (822 ) $ (5,398 ) $ 164 $ 813 The components of net periodic benefit cost and amounts recognized in other comprehensive income were as follows: Postretirement Healthcare Plan 2018 2017 (dollars in thousands) Net periodic benefit cost Service cost $ 23 $ 19 Interest cost 22 23 Expected return on assets — — Amortization of prior service credit — — Amortization of net actuarial gain — (9 ) Net periodic benefit cost 45 33 Amounts recognized in other comprehensive income/( loss) Net actuarial (gain) loss (30 ) 37 Amortization of prior service credit — — Amortization of net actuarial gain — 9 Total recognized in other comprehensive income/( loss) (30 ) 46 Total recognized in net periodic benefit cost and other comprehensive income/( loss) $ 15 $ 79 |
Schedule of Weighted-average Assumptions Used to Determine Projected Benefit Obligations and Net Periodic Benefit Cost | Weighted-average assumptions used to determine projected benefit obligations are as follows: Pension Plan Supplemental Retirement Plan 2018 2017 2018 2017 Discount rate 4.23 % 3.58 % 4.10 % 3.39 % Rate of compensation increase N/A 4.00 % 4.00 % 4.00 % Weighted-average assumptions used to determine net periodic benefit cost are as follows: Pension Plan Supplemental Retirement Plan 2018 2017 2018 2017 Discount rate 3.58 % 4.25 % 3.39 % 4.25 % Expected long-term return on plan assets 6.50 % 7.00 % N/A N/A Rate of compensation increase N/A 4.00 % 4.00 % 4.00 % Weighted-average assumptions used to determine projected benefit obligations are as follows: Postretirement Healthcare Plan 2018 2017 Discount rate 4.22 % 3.58 % Rate of compensation increase N/A N/A Weighted-average assumptions used to determine net periodic benefit cost are as follows: Postretirement Healthcare Plan 2018 2017 Discount rate 3.58 % 4.25 % Expected long-term return on plan assets N/A N/A Rate of compensation increase N/A N/A |
Schedule of Pension Plan Weighted-average Asset Allocations by Asset | The Company’s Pension Plan weighted-average asset allocations by asset category were as follows: December 31, 2018 2017 Equity securities 60 % 65 % Debt securities 35 29 Other 1 2 Cash and equivalents 4 4 Total 100 % 100 % |
Summary of Various Categories of Pension Plan Assets | The following table summarizes the various categories of the Pension Plan’s assets: Fair Value as of December 31, 2018 Level 1 Level 2 Level 3 Total (dollars in thousands) Asset category Cash and cash equivalents $ 3,520 $ — $ — $ 3,520 Fixed Income — 6,534 — 6,534 Equity securities Common Stock Large cap core 16,127 — — 16,127 Mid cap core — — — — Small cap core 2,090 — — 2,090 Mutual funds Domestic Equity 4,320 — — 4,320 International 3,409 — — 3,409 Domestic Fixed Income 6,648 6,648 Preferred Stock — — — — Total $ 36,114 $ 6,534 $ — $ 42,648 |
Information to Retirement Plans with Accumulated Benefit Obligation in Excess of Plan Assets | Information for retirement plans with an accumulated benefit obligation in excess of plan assets: Postretirement Healthcare Plan 2018 2017 (dollars in thousands) Projected benefit obligation $ 598 $ 617 Accumulated benefit obligation 598 617 Fair value of plan assets — — |
Schedule of Assumed Health Care Cost Trend Rates | Assumed health care cost trend rates are as follows: Postretirement Healthcare Plan 2018 2017 Health care cost trend rate assumed for next year 4.00 % 4.00 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.00 % 4.00 % Year that the rate reaches the ultimate trend rate 2018 2017 |
Schedule of Effect on One-percentage-point Change in Assumed Health Care Cost Trend Rates | A one-percentage-point change in assumed health care cost trend rates would have the following effects: One Percentage Point Increase Decrease (dollars in thousands) Effect on total service and interest cost $ — $ — Effect on postretirement benefit obligation 4 (4 ) |
Schedule of Benefits Expected to be Paid in the Next Ten Years | Benefits expected to be paid in the next ten years are as follows: Pension Plan Supplemental Retirement Plan Postretirement Healthcare Plan Total (dollars in thousands) Year-ended December 31, 2019 $ 1,585 $ 577 $ 33 $ 2,195 2020 1,748 575 34 2,357 2021 1,811 572 33 2,416 2022 1,947 590 34 2,571 2023 2,063 587 34 2,684 2024-2028 inclusive 11,479 2,882 171 14,532 Ten year total $ 20,633 $ 5,783 $ 339 $ 26,755 |
Schedule of Estimated Amounts That will be Amortized from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost | The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost during 2019 are as follows: Pension Plan Supplemental Retirement Plan Postretirement Healthcare Plan Total (dollars in thousands) Prior service cost $ (4 ) $ — $ — $ (4 ) Net (gain)/loss 152 — (4 ) 148 Total $ 148 $ — $ (4 ) $ 144 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Stock Options Transactions and Changes | A summary of stock option transactions for the periods of December 31, 2018 and 2017, and changes during the years ended on those dates, is presented below: 2018 2017 Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Stock Options Outstanding at beginning of year 16,377 $ 29.21 45,612 $ 30.23 Granted — — — — Forfeited — — — — Expired (2,600 ) 29.21 (4,500 ) 30.11 Exercised (13,777 ) 29.21 (24,735 ) 30.93 Outstanding at end of year — $ — 16,377 29.21 Exercisable at end of year — $ — 16,377 $ 29.21 |
Summary of Non-vested Restricted Shares Outstanding | A summary of non-vested restricted shares outstanding as of December 31, 2018 and 2017, and changes during the years ended on those dates, is presented below: 2018 2017 Number of Shares Weighted Average Grant Value Number of Shares Weighted Average Grant Value Restricted stock Non-vested at beginning of year 43,240 $ 53.13 41,957 $ 44.17 Granted 17,373 80.43 18,906 64.62 Vested (15,760 ) 50.10 (14,113 ) 42.62 Forfeited (3,542 ) 60.84 (3,510 ) 49.19 Non-vested at end of year 41,311 $ 65.10 43,240 $ 53.13 |
Schedule of Amounts Recognized in Consolidated Income Statement for Restricted Stock Awards, Time Based Restricted Stock Units and Performance Based Restricted Stock Units | The following table presents the amounts recognized in the consolidated income statement for restricted stock awards, time-based restricted stock units, and performance-based restricted stock units: December 31, 2018 2017 2016 (dollars in thousands) Share-based compensation expense $ 2,592 $ 1,045 $ 997 Related income tax benefit $ 729 $ 427 $ 407 |
Performance-Based Restricted Stock Units | |
Summary of Non-vested Restricted Stock Units Outstanding | A summary of non-vested performance-based restricted stock units outstanding as of December 31, 2018 and 2017, and changes during the years ended on those dates, is presented below: 2018 2017 Number of Units Weighted Average Grant Value Number of Units Weighted Average Grant Value Performance-based restricted stock units Non-vested at beginning of year 21,613 $ 56.05 25,941 $ 45.17 Granted 23,511 76.56 12,079 64.72 Vested (Performance achieved) — — — — Forfeited (3,713 ) 70.68 (8,597 ) 46.19 Expired (Performance not achieved) — — (7,810 ) 44.17 Non-vested at end of year 41,411 $ 66.39 21,613 $ 56.05 |
Time Based Restricted Stock Units | |
Summary of Non-vested Restricted Stock Units Outstanding | A summary of nonvested time based restricted stock units outstanding as of December, 31 2018 and 2017, and changes during the years ended on those dates, is presented below: 2018 2017 Number of Shares Weighted Average Grant Value Number of Shares Weighted Average Grant Value Time-based restricted stock units Non-vested at beginning of year — $ — — $ — Granted 7,839 76.56 — — Vested (225 ) 76.56 — — Forfeited (837 ) 76.56 — — Non-vested at end of year 6,777 $ 76.56 — $ — |
Financial Instruments with Of_2
Financial Instruments with Off-Balance-Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Off-Balance-Sheet Financial Instruments with Contractual Amounts Include Present Credit Risk | Off-balance-sheet financial instruments with contractual amounts that present credit risk included the following: December 31, 2018 December 31, 2017 (dollars in thousands) Financial instruments whose contractual amount represents credit risk: Commitments to extend credit: Unused portion of existing lines of credit $ 368,410 $ 304,298 Origination of new loans 24,505 45,061 Standby letters of credit 8,752 8,322 Financial instruments whose notional amount exceeds the amount of credit risk: Commitments to sell residential mortgage loans — 1,490 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Total Minimum Rentals Due in Future Periods under Lease Agreements | The total minimum rentals due in future periods under these agreements in effect at December 31, 2018 were as follows: Year Ended Future Minimum December 31, Lease Payments (dollars in thousands) 2019 4,448 2020 4,661 2021 4,662 2022 4,553 2023 4,455 Thereafter 17,128 Total minimum lease payments $ 39,907 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Minimum Capital Requirements Considered Well Capitalized by FRB and FDIC | The Company’s and the Bank’s actual and required capital measures were as follows: Actual Minimum Capital Required For Capital Adequacy Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Phase-In Schedule Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) At December 31, 2018 Cambridge Bancorp: Total capital (to risk-weighted assets) $ 189,888 13.2 % $ 114,666 8.0 % $ 141,541 9.875 % $ 150,500 10.5 % N/A N/A Tier I capital (to risk-weighted assets) 173,070 12.1 % 86,000 6.0 % 112,875 7.875 % 121,833 8.5 % N/A N/A Common equity tier I capital (to risk-weighted assets) 173,070 12.1 % 64,500 4.5 % 91,375 6.375 % 100,333 7.0 % N/A N/A Tier I capital (to average assets) 173,070 8.5 % 81,507 4.0 % 81,507 4.000 % 81,507 4.0 % N/A N/A Cambridge Trust Company: Total capital (to risk-weighted assets) $ 185,507 12.9 % $ 114,666 8.0 % $ 141,541 9.875 % $ 150,500 10.5 % $ 143,333 10.0 % Tier I capital (to risk-weighted assets) 168,689 11.8 % 86,000 6.0 % 112,875 7.875 % 121,833 8.5 % 114,666 8.0 % Common equity tier I capital (to risk-weighted assets) 168,689 11.8 % 64,500 4.5 % 91,375 6.375 % 100,333 7.0 % 93,166 6.5 % Tier I capital (to average assets) 168,689 8.3 % 81,507 4.0 % 81,507 4.000 % 81,507 4.0 % 101,884 5.0 % At December 31, 2017 Cambridge Bancorp: Total capital (to risk-weighted assets) $ 168,615 13.7 % $ 98,136 8.0 % $ 113,470 9.250 % $ 128,804 10.5 % N/A N/A Tier I capital (to risk-weighted assets) 153,281 12.5 % 73,602 6.0 % 88,936 7.250 % 104,270 8.5 % N/A N/A Common equity tier I capital (to risk-weighted assets) 153,281 12.5 % 55,202 4.5 % 70,535 5.750 % 85,869 7.0 % N/A N/A Tier I capital (to average assets) 153,281 8.1 % 76,026 4.0 % 76,026 4.000 % 76,026 4.0 % N/A N/A Cambridge Trust Company: Total capital (to risk-weighted assets) $ 164,880 13.4 % $ 98,136 8.0 % $ 113,470 9.250 % $ 128,804 10.5 % $ 122,670 10.0 % Tier I capital (to risk-weighted assets) 149,546 12.2 % 73,602 6.0 % 88,936 7.250 % 104,270 8.5 % 98,136 8.0 % Common equity tier I capital (to risk-weighted assets) 149,546 12.2 % 55,202 4.5 % 70,535 5.750 % 85,869 7.0 % 79,736 6.5 % Tier I capital (to average assets) 149,546 7.9 % 76,026 4.0 % 76,026 4.000 % 76,026 4.0 % 95,033 5.0 % |
Other Income (Tables)
Other Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Schedule of Components of Other Income | The components of other income were as follows: For the Year Ended December 31, 2018 2017 2016 (dollars in thousands) Safe deposit box income $ 342 $ 348 $ 366 Loan fee income 358 473 229 Miscellaneous income 569 334 326 Total other income $ 1,269 $ 1,155 $ 921 |
Other Operating Expenses (Table
Other Operating Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Income And Expenses [Abstract] | |
Components of Other Operating Expenses | The components of other operating expenses were as follows: For the Year Ended December 31, 2018 2017 2016 (dollars in thousands) Director fees $ 724 $ 576 $ 513 Charitable donations & sponsorships 518 432 434 Printing and supplies 272 251 291 Travel and entertainment 456 339 331 Dues and memberships 293 260 276 Physical security 131 172 233 Postage and mailing 201 229 241 Miscellaneous expense (331 ) 885 613 Total other operating expenses $ 2,264 $ 3,144 $ 2,932 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Summary of Other Comprehensive Income | The Company’s other comprehensive income consists of unrealized gains or losses on securities held at year-end classified as available for sale and the component of the unfunded retirement liability computed in accordance with the requirements of ASC 715, “ Compensation – Retirement Benefits. For the Year Ended December 31, 2018 For the Year Ended December 31, 2017 For the Year Ended December 31, 2016 Before Tax Amount Tax (Expense) or Benefit Net-of- tax Amount Before Tax Amount Tax (Expense) or Benefit Net-of- tax Amount Before Tax Amount Tax (Expense) or Benefit Net-of- tax Amount (dollars in thousands) Unrealized (losses)/gains on available for sale Securities Unrealized holding (losses)/gains arising during the period $ (231 ) $ (11 ) $ (242 ) $ 187 $ (59 ) $ 128 $ (1,224 ) $ 489 $ (735 ) Reclassification adjustment for (gains)/losses recognized in net income (2 ) — (2 ) 3 (2 ) 1 (438 ) 157 (281 ) Derivatives Change in interest rate contracts 1,045 (294 ) 751 — — — — — — Defined benefit retirement plans Net change in retirement liability 124 (35 ) 89 6,545 (2,674 ) 3,871 (738 ) 301 (437 ) Total Other Comprehensive Income/(Loss) $ 936 $ (340 ) $ 596 $ 6,735 $ (2,735 ) $ 4,000 $ (2,400 ) $ 947 $ (1,453 ) |
Summary of Reclassifications out of Accumulated Other Comprehensive Income ("AOCI") | Reclassifications out of Accumulated Other Comprehensive Income (“AOCI”) are presented below: For the Year Ended December 31, Details about Accumulated Other Comprehensive Income (Loss) Components 2018 2017 2016 Affected Line Item in the Statement where Net Income is Presented (dollars in thousands) Unrealized gains and losses on available for sale securities $ 2 $ (3 ) $ 438 (Loss) gain on disposition of investment securities Tax benefit or (expense) — 2 (157 ) Provision for income taxes Net of tax $ 2 $ (1 ) $ 281 Net income |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Summary of Reconciliation Between Basic and Diluted Earnings Per Share | The following represents a reconciliation between basic and diluted earnings per share: For the Year Ended December 31, 2018 2017 2016 (dollars in thousands, except per share data) Earnings per common share - basic: Numerator: Net income $ 23,881 $ 14,816 $ 16,896 Less dividends and undistributed earnings allocated to participating securities (239 ) (157 ) (182 ) Net income applicable to common shareholders $ 23,642 $ 14,659 $ 16,714 Denominator: Weighted average common shares outstanding 4,062 4,031 3,990 Earnings per common share – basic $ 5.82 $ 3.64 $ 4.19 Earnings per common share - diluted: Numerator: Net income $ 23,881 $ 14,816 $ 16,896 Less dividends and undistributed earnings allocated to participating securities (239 ) (157 ) (181 ) Net income applicable to common shareholders $ 23,642 $ 14,659 $ 16,715 Denominator: Weighted average common shares outstanding 4,062 4,031 3,990 Dilutive effect of common stock equivalents 37 35 39 Weighted average diluted common shares outstanding 4,099 4,066 4,029 Earnings per common share – diluted $ 5.77 $ 3.61 $ 4.15 |
Derivative And Hedging Activi_2
Derivative And Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Fair Values of Derivative Instruments in the Company's Consolidated Balance Sheets | The following tables present the notional amount, the location, and fair values of derivative instruments in the Company’s Consolidated Balance Sheets: December 31, 2018 Derivative Assets Derivative Liabilities Notional Amount Balance Sheet Location Fair Value Notional Amount Balance Sheet Location Fair Value (dollars in thousands) (dollars in thousands) Derivatives designated as hedging instruments Interest rate contracts $ 150,000 Other Assets $ 1,970 $ — Other Liabilities $ — Total derivatives designated as hedging instruments $ 1,970 $ — Derivatives not designated as hedging instruments Loan related derivative contracts Interest rate swaps with customers $ 150,489 Other Assets $ 5,782 $ — Other Liabilities $ — Mirror swaps with counterparties — Other Assets — 150,489 Other Liabilities 5,782 Risk participation agreements out to counterparties 19,000 Other Assets 28 — Other Liabilities — Risk participation agreements in with counterparties — Other Assets — 63,825 Other Liabilities 179 Total derivatives not designated as hedging instruments $ 5,810 $ 5,961 December 31, 2017 Derivative Assets Derivative Liabilities Notional Amount Balance Sheet Location Fair Value Notional Amount Balance Sheet Location Fair Value (dollars in thousands) (dollars in thousands) Derivatives designated as hedging instruments Interest rate contracts $ — Other Assets $ — $ — Other Liabilities $ — Total derivatives designated as hedging instruments $ — $ — Derivatives not designated as hedging instruments Loan related derivative contracts Interest rate swaps with customers $ 74,758 Other Assets $ 1,859 $ — Other Liabilities $ — Mirror swaps with counterparties — Other Assets — 74,758 Other Liabilities 1,859 Risk participation agreements out to counterparties — Other Assets — — Other Liabilities — Risk participation agreements in with counterparties — Other Assets — 38,494 Other Liabilities 81 Total derivatives not designated as hedging instruments $ 1,859 $ 1,940 |
Summary of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income | The following table presents the effect of cash flow hedge accounting on Accumulated Other Comprehensive Income as of Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Included Component Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Excluded Component 2018 2018 (dollars in thousands) (dollars in thousands) Interest rate contracts $ 1,002 $ — $ 1,002 Interest Income $ (43 ) $ — $ (43 ) Total $ 1,002 $ — $ 1,002 $ (43 ) $ — $ (43 ) |
Summary of Derivative Financial Instruments Income Statement | The following table presents the effect of the Company’s derivative financial instruments on the Income Statement as of Year Ended December 31, 2018 Interest Income (Expense) (dollars in thousands) Total amounts of income and expense line items presented in the income statement in which the effects of fair value or cash flow hedges are recorded $ (43 ) The effects of fair value and cash flow hedging: Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest rate contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ (43 ) Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Included Component — Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Excluded Component $ (43 ) |
Summary of Derivative Financial Instruments Not Designated as Hedging Instruments | The following table presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Income Statement as of the periods presented: Amount of Gain or (Loss) Recognized in Income on Derivative Year Ended December 31 Year Ended December 31 Year Ended December 31 2018 2017 2016 Location of Gain or (Loss) (dollars in thousands) Other contracts Other income $ 276 $ 426 $ 209 Total $ 276 $ 426 $ 209 |
Schedule of Financial Instruments Eligible for Offset in Consolidated Balance Sheet | The following tables present the information about financial instruments that are eligible for offset in the consolidated balance sheet as December 31, 2018 and December 31, 2017: Gross Amounts Not Offset Gross Amounts of Recognized Gross Amounts Offset Net Amounts Recognized Financial Instruments Collateral Pledged (Received) Net Amount December 31, 2018 (dollars in thousands) Offsetting of Derivative Assets Derivative Assets $ 7,780 $ — $ 7,780 $ 3,099 $ (743 ) $ 3,938 Offsetting of Derivative Liabilities Derivative Liabilities $ 5,961 $ — $ 5,961 $ 3,099 $ 260 $ 2,602 Gross Amounts Not Offset Gross Amounts of Recognized Gross Amounts Offset Net Amounts Recognized Financial Instruments Collateral Pledged (Received) Net Amount December 31, 2017 (dollars in thousands) Offsetting of Derivative Assets Derivative Assets $ 1,859 $ — $ 1,859 $ 326 $ (1,131 ) $ 402 Offsetting of Derivative Liabilities Derivative Liabilities $ 1,940 $ — $ 1,940 $ 326 $ — $ 1,614 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Carrying Values and Estimated Fair Values of Financial Instruments | The following is a summary of the carrying values and estimated fair values of the Company’s significant financial instruments as of the dates indicated: December 31, 2018 December 31, 2017 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (dollars in thousands) Financial assets Cash and cash equivalents $ 18,473 $ 18,473 $ 103,591 $ 103,591 Securities available for sale 168,163 168,163 205,017 205,017 Securities held to maturity 282,869 281,310 232,188 233,554 Loans, net 1,543,004 1,484,905 1,335,579 1,304,719 Loans held for sale — — — — FHLB Boston stock 6,844 6,844 4,242 4,242 Accrued interest receivable 5,762 5,762 5,128 5,128 Mortgage servicing rights 666 941 793 1,049 Interest rate contracts 1,970 1,970 — — Loan level interest rate swaps 5,782 5,782 1,859 1,859 Risk participation agreements out to counterparties 28 28 — — Financial liabilities Deposits 1,811,410 1,809,051 1,775,400 1,772,838 Short-term borrowings 90,000 90,000 — — Long-term borrowings 3,409 3,363 3,579 3,559 Loan level interest rate swaps 5,782 5,782 1,859 1,859 Risk participation agreements in with counterparties 179 179 81 81 |
Summary of Certain Assets Reported at Fair Value on a Recurring Basis | The following tables summarize certain assets reported at fair value on a recurring basis: Fair Value as of December 31, 2018 Level 1 Level 2 Level 3 Total (dollars in thousands) Measured on a recurring basis Securities available for sale U.S. GSE obligations $ — $ 74,039 $ — $ 74,039 Mortgage-backed securities — 89,268 — 89,268 Corporate debt securities — 4,856 — 4,856 Mutual funds — — — — Other assets Interest rate swaps with customers — 5,782 — 5,782 Risk participation agreements out to counterparties — 28 — 28 Interest rate contracts — 1,970 — 1,970 Other liabilities Mirror swaps with counterparties — 5,782 — 5,782 Risk participation agreements in with counterparties — 179 — 179 Fair Value as of December 31, 2017 Level 1 Level 2 Level 3 Total (dollars in thousands) Measured on a recurring basis Securities available for sale U.S. GSE obligations $ — $ 88,791 $ — $ 88,791 Mortgage-backed securities — 110,626 — 110,626 Corporate debt securities — 5,001 — 5,001 Mutual funds 599 — — 599 Other assets Interest rate swaps with customers — 1,859 — 1,859 Risk participation agreements out to counterparties — — — — Interest rate cash flow derivative — — — — Other liabilities Mirror swaps with counterparties — 1,859 — 1,859 Risk participation agreements in with counterparties — 81 — 81 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | 2018 Quarters Fourth Third Second First (dollars in thousands, except share data) Interest and Dividend Income $ 18,385 $ 17,602 $ 16,936 $ 16,132 Interest Expense 1,975 1,431 1,082 979 Net Interest and Dividend Income 16,410 16,171 15,854 15,153 Provision for (Release of) Loan Losses 715 457 (79 ) 409 Net Interest and Dividend Income after Provision for Loan Losses 15,695 15,714 15,933 14,744 Noninterest Income 8,038 8,929 7,844 8,178 Noninterest Expense 16,842 15,879 15,765 15,501 Income Before Taxes 6,891 8,764 8,012 7,421 Income Taxes 1,585 2,105 1,901 1,616 Net Income $ 5,306 $ 6,659 $ 6,111 $ 5,805 Share Data: Average Shares Outstanding, Basic 4,065,681 4,064,620 4,059,927 4,053,355 Average Shares Outstanding, Diluted 4,102,546 4,101,378 4,094,489 4,071,975 Basic Earnings Per Share $ 1.29 $ 1.62 $ 1.49 $ 1.42 Diluted Earnings Per Share $ 1.28 $ 1.61 $ 1.48 $ 1.41 2017 Quarters Fourth Third Second First (dollars in thousands, except share data) Interest and Dividend Income $ 15,744 $ 15,673 $ 15,101 $ 14,673 Interest Expense 970 1,034 871 712 Net Interest and Dividend Income 14,774 14,639 14,230 13,961 Provision for (Release of) Loan Losses 2 310 20 30 Net Interest and Dividend Income after Provision for Loan Losses 14,772 14,329 14,210 13,931 Noninterest Income 7,575 7,977 7,345 7,327 Noninterest Expense 15,012 14,602 14,732 14,946 Income Before Taxes 7,335 7,704 6,823 6,312 Income Taxes 6,371 2,694 2,309 1,984 Net Income $ 964 $ 5,010 $ 4,514 $ 4,328 Share Data: Average Shares Outstanding, Basic 4,038,948 4,037,026 4,034,397 4,011,925 Average Shares Outstanding, Diluted 4,073,707 4,070,332 4,068,360 4,050,791 Basic Earnings Per Share $ 0.24 $ 1.23 $ 1.11 $ 1.07 Diluted Earnings Per Share $ 0.23 $ 1.22 $ 1.10 $ 1.06 |
Condensed Financial Statement_2
Condensed Financial Statements of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheet | Condensed Balance Sheet December 31, 2018 2017 (dollars in thousands) ASSETS Cash $ 4,412 $ 3,735 Investment in subsidiary, at equity 162,614 144,222 Total assets $ 167,026 $ 147,957 SHAREHOLDERS’ EQUITY Shareholders’ equity $ 167,026 $ 147,957 Total shareholders’ equity $ 167,026 $ 147,957 |
Condensed Statements of Income | Condensed Statements of Income For the Year Ended December 31, 2018 2017 2016 (dollars in thousands) Income Dividends from subsidiary $ 8,615 $ 8,052 $ 3,412 Total income 8,615 8,052 3,412 Expenses Other expenses 116 — — Total expenses 116 — — Income before income taxes and equity in undistributed income of subsidiary 8,499 8,052 3,412 Income tax benefit (32 ) — — Income of parent company 8,531 8,052 3,412 Equity in undistributed income of subsidiary 15,350 6,764 13,484 Net income $ 23,881 $ 14,816 $ 16,896 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows For the Year Ended December 31, 2018 2017 2016 (dollars in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 23,881 $ 14,816 $ 16,896 Adjustments to reconcile net income to net cash provided by operating activities Undistributed income of subsidiary (15,350 ) (6,764 ) (13,484 ) Net cash provided by operating activities 8,531 8,052 3,412 CASH FLOWS FROM BY FINANCING ACTIVITIES: Proceeds from the issuance of common stock 761 1,522 2,020 Repurchase of common stock (574 ) (470 ) (1,560 ) Cash dividends paid on common stock (8,041 ) (7,582 ) (7,428 ) Net cash used in financing activities (7,854 ) (6,530 ) (6,968 ) Net increase (decrease) in cash 677 1,522 (3,556 ) Cash at beginning of year 3,735 2,213 5,769 Cash at end of year $ 4,412 $ 3,735 $ 2,213 |
The Business - Additional Infor
The Business - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018ServiceBankCorporationOffice | |
Massachusetts | |
Description Of Business [Line Items] | |
Number of wealth management offices | 2 |
New Hampshire | |
Description Of Business [Line Items] | |
Number of wealth management offices | 3 |
Cambridge Bancorp | |
Description Of Business [Line Items] | |
Number of core services | Service | 4 |
Number of wholly owned investment in corporations | Corporation | 2 |
Cambridge Bancorp | Massachusetts | |
Description Of Business [Line Items] | |
Number of full service private banking office | Bank | 10 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Statutory federal tax rate | 21.00% | 35.00% | 35.00% |
Tax cuts and jobs act of 2017, one-time non-cash write-down of net deferred tax assets | $ 3,900,000 | ||
Defined benefit pension highest consecutive plan period | 5 years | 3 years | |
Defined benefit pension plan employees final service period | 10 years | ||
Defined contribution plan, employer matching contribution, percent | 10.00% | ||
Compensation cost | $ 0 | ||
Profit Sharing Plan | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Defined contribution plan, maximum employee contribution, percent | 100.00% | ||
Defined contribution plan, employer matching contribution, percent | 4.00% | 3.00% | |
Defined contribution plan, minimum number of hours of service per year required for eligibility | 1000 hours | ||
Defined contribution plan, minimum service period required for eligibility | 12 months | ||
Normal retirement age of employees | 65 years | ||
Commercial Mortgage | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of loan to value ratio | 75.00% | ||
Minimum | Residential Mortgage and Home Equity Loans | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of loan to value ratio | 80.00% | ||
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of bank-owned life insurance | 25.00% | ||
Maximum | Residential Mortgage and Home Equity Loans | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of loan to value ratio | 97.00% |
Recently Issued and Adopted A_2
Recently Issued and Adopted Accounting Standards - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Federal tax rate | 21.00% | 35.00% | 35.00% | ||
Accounting Standards Update 2018-02 | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Reclassification from AOCI to retained earnings | $ 1,300,000 | ||||
Reclassification effect on shareholder equity | $ 0 | ||||
Accounting Standards Update 2016-02 | Subsequent Event | Minimum | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Right-of-use asset | $ 32,000,000 | ||||
Accounting Standards Update 2016-02 | Subsequent Event | Maximum | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Right-of-use asset | $ 37,000,000 |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Cash And Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 18,473,000 | $ 103,591,000 | $ 54,050,000 | $ 24,645,000 |
Federal Reserve Bank of Boston | ||||
Cash And Cash Equivalents [Line Items] | ||||
Reserve balance of cash and due from banks | 12,700,000 | 12,800,000 | ||
New Hampshire | ||||
Cash And Cash Equivalents [Line Items] | ||||
Pledged amount to federal banking department | $ 500,000 | $ 500,000 |
Investment Securities - Summary
Investment Securities - Summary of Carrying Amounts of Securities and Their Approximate Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Amortized Cost | $ 172,290 | $ 208,911 |
Available for sale securities, Gross Unrealized Gains | 118 | 260 |
Available for sale securities, Gross Unrealized Losses | (4,245) | (4,154) |
Available for sale securities, Fair Value | 168,163 | 205,017 |
Held to maturity securities, Amortized Cost | 282,869 | 232,188 |
Held to maturity securities, Gross Unrealized Gains | 1,431 | 2,555 |
Held to maturity securities, Gross Unrealized Losses | (2,990) | (1,189) |
Held to maturity securities, Fair Value | 281,310 | 233,554 |
Total, Amortized Cost | 455,159 | 441,099 |
Total, Gross Unrealized Gains | 1,549 | 2,815 |
Total, Gross Unrealized Losses | (7,235) | (5,343) |
Total, Fair Value | 449,473 | 438,571 |
U.S. GSE Obligations | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Amortized Cost | 75,004 | 90,021 |
Available for sale securities, Gross Unrealized Losses | (965) | (1,230) |
Available for sale securities, Fair Value | 74,039 | 88,791 |
Held to maturity securities, Amortized Cost | 32,571 | 32,572 |
Held to maturity securities, Gross Unrealized Losses | (238) | (166) |
Held to maturity securities, Fair Value | 32,333 | 32,406 |
Corporate Debt Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Amortized Cost | 5,015 | 5,034 |
Available for sale securities, Gross Unrealized Gains | 12 | |
Available for sale securities, Gross Unrealized Losses | (159) | (45) |
Available for sale securities, Fair Value | 4,856 | 5,001 |
Held to maturity securities, Amortized Cost | 6,972 | 1,998 |
Held to maturity securities, Gross Unrealized Gains | 4 | |
Held to maturity securities, Gross Unrealized Losses | (107) | |
Held to maturity securities, Fair Value | 6,865 | 2,002 |
Mortgage Backed Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Amortized Cost | 92,271 | 113,184 |
Available for sale securities, Gross Unrealized Gains | 118 | 248 |
Available for sale securities, Gross Unrealized Losses | (3,121) | (2,806) |
Available for sale securities, Fair Value | 89,268 | 110,626 |
Held to maturity securities, Amortized Cost | 168,118 | 117,155 |
Held to maturity securities, Gross Unrealized Gains | 134 | 7 |
Held to maturity securities, Gross Unrealized Losses | (2,290) | (906) |
Held to maturity securities, Fair Value | 165,962 | 116,256 |
Mutual Funds | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Amortized Cost | 672 | |
Available for sale securities, Gross Unrealized Losses | (73) | |
Available for sale securities, Fair Value | 599 | |
Municipal Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Held to maturity securities, Amortized Cost | 75,208 | 80,463 |
Held to maturity securities, Gross Unrealized Gains | 1,297 | 2,544 |
Held to maturity securities, Gross Unrealized Losses | (355) | (117) |
Held to maturity securities, Fair Value | $ 76,150 | $ 82,890 |
Investment Securities - Schedul
Investment Securities - Schedule of Amortized Cost and Fair Value of Debt Securities, Aggregated By Earlier of Guaranteed Call Date or Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Within One Year, Amortized Cost | $ 12,012 | |
Available for sale securities, Within One Year, Fair Value | 11,940 | |
Available for sale securities, After One, But Within Five Years, Amortized Cost | 68,085 | |
Available for sale securities, After One, But Within Five Years, Fair Value | 67,035 | |
Available for sale securities, After Five, But Within Ten Years, Amortized Cost | 33,768 | |
Available for sale securities, After Five, But Within Ten Years, Fair Value | 32,905 | |
Available for sale securities, After Ten Years, Amortized Cost | 58,425 | |
Available for sale securities, After Ten Years, Fair Value | 56,283 | |
Available for sale securities, Total, Amortized Cost | 172,290 | |
Available for sale securities, Total, Fair Value | 168,163 | |
Held to maturity securities, Within One Year, Amortized Cost | 9,681 | |
Held to maturity securities, Within One Year, Fair Value | 9,696 | |
Held to maturity securities, After One, But Within Five Years, Amortized Cost | 47,801 | |
Held to maturity securities, After One, But Within Five Years, Fair Value | 47,634 | |
Held to maturity securities, After Five, But Within Ten Years, Amortized Cost | 75,824 | |
Held to maturity securities, After Five, But Within Ten Years, Fair Value | 76,231 | |
Held to maturity securities, After Ten Years, Amortized Cost | 149,563 | |
Held to maturity securities, After Ten Years, Fair Value | 147,749 | |
Held to maturity securities, Amortized Cost | 282,869 | $ 232,188 |
Held to maturity securities, Fair Value | 281,310 | 233,554 |
Available for sale securities and Held to maturity securities, Within One Year, Amortized Cost | 21,693 | |
Available for sale securities and Held to maturity securities, Within One Year, Fair Value | 21,636 | |
Available for sale securities and Held to maturity securities, After One, But Within Five Years, Amortized Cost | 115,886 | |
Available for sale securities and Held to maturity securities, After One, But Within Five Years, Fair Value | 114,669 | |
Available for sale securities and Held to maturity securities, After Five, But Within Ten Years, Amortized Cost | 109,592 | |
Available for sale securities and Held to maturity securities, After Five, But Within Ten Years, Fair Value | 109,136 | |
Available for sale securities and Held to maturity securities, After Ten Years, Amortized Cost | 207,988 | |
Available for sale securities and Held to maturity securities, After Ten Years, Fair Value | 204,032 | |
Available for sale securities and Held to maturity securities, Total, Amortized Cost | 455,159 | |
Available for sale securities and Held to maturity securities, Total, Fair Value | 449,473 | |
U.S. GSE Obligations | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Within One Year, Amortized Cost | 10,004 | |
Available for sale securities, Within One Year, Fair Value | 9,946 | |
Available for sale securities, After One, But Within Five Years, Amortized Cost | 65,000 | |
Available for sale securities, After One, But Within Five Years, Fair Value | 64,093 | |
Available for sale securities, Total, Amortized Cost | 75,004 | |
Available for sale securities, Total, Fair Value | 74,039 | |
Held to maturity securities, Within One Year, Amortized Cost | 5,001 | |
Held to maturity securities, Within One Year, Fair Value | 4,991 | |
Held to maturity securities, After One, But Within Five Years, Amortized Cost | 27,570 | |
Held to maturity securities, After One, But Within Five Years, Fair Value | 27,342 | |
Held to maturity securities, Amortized Cost | 32,571 | |
Held to maturity securities, Fair Value | 32,333 | |
Mortgage Backed Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, After One, But Within Five Years, Amortized Cost | 78 | |
Available for sale securities, After One, But Within Five Years, Fair Value | 80 | |
Available for sale securities, After Five, But Within Ten Years, Amortized Cost | 33,768 | |
Available for sale securities, After Five, But Within Ten Years, Fair Value | 32,905 | |
Available for sale securities, After Ten Years, Amortized Cost | 58,425 | |
Available for sale securities, After Ten Years, Fair Value | 56,283 | |
Available for sale securities, Total, Amortized Cost | 92,271 | |
Available for sale securities, Total, Fair Value | 89,268 | |
Held to maturity securities, Within One Year, Amortized Cost | 50 | |
Held to maturity securities, Within One Year, Fair Value | 51 | |
Held to maturity securities, After Five, But Within Ten Years, Amortized Cost | 34,434 | |
Held to maturity securities, After Five, But Within Ten Years, Fair Value | 33,958 | |
Held to maturity securities, After Ten Years, Amortized Cost | 133,634 | |
Held to maturity securities, After Ten Years, Fair Value | 131,953 | |
Held to maturity securities, Amortized Cost | 168,118 | |
Held to maturity securities, Fair Value | 165,962 | |
Corporate Debt Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Within One Year, Amortized Cost | 2,008 | |
Available for sale securities, Within One Year, Fair Value | 1,994 | |
Available for sale securities, After One, But Within Five Years, Amortized Cost | 3,007 | |
Available for sale securities, After One, But Within Five Years, Fair Value | 2,862 | |
Available for sale securities, Total, Amortized Cost | 5,015 | |
Available for sale securities, Total, Fair Value | 4,856 | |
Held to maturity securities, After One, But Within Five Years, Amortized Cost | 6,972 | |
Held to maturity securities, After One, But Within Five Years, Fair Value | 6,865 | |
Held to maturity securities, Amortized Cost | 6,972 | |
Held to maturity securities, Fair Value | 6,865 | |
Municipal Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Held to maturity securities, Within One Year, Amortized Cost | 4,630 | |
Held to maturity securities, Within One Year, Fair Value | 4,654 | |
Held to maturity securities, After One, But Within Five Years, Amortized Cost | 13,259 | |
Held to maturity securities, After One, But Within Five Years, Fair Value | 13,427 | |
Held to maturity securities, After Five, But Within Ten Years, Amortized Cost | 41,390 | |
Held to maturity securities, After Five, But Within Ten Years, Fair Value | 42,273 | |
Held to maturity securities, After Ten Years, Amortized Cost | 15,929 | |
Held to maturity securities, After Ten Years, Fair Value | 15,796 | |
Held to maturity securities, Amortized Cost | 75,208 | 80,463 |
Held to maturity securities, Fair Value | $ 76,150 | $ 82,890 |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Losses of Aggregated by Investment Category and Length of Time that Individual Securities have been in Continuous Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Temporarily Impaired Securities, Available for sale securities, Fair Value, Less than 12 months | $ 902 | $ 17,505 |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses, Less than 12 months | (98) | (178) |
Temporarily Impaired Securities, Available for sale securities, Fair Value, 12 months or longer | 164,808 | 183,064 |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses, 12 months or longer | (4,147) | (3,976) |
Temporarily Impaired Securities, Available for sale securities, Fair Value | 165,710 | 200,569 |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses | (4,245) | (4,154) |
Temporarily Impaired Securities, Held to maturity securities, Fair Value, Less than 12 months | 51,063 | 145,374 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses, Less than 12 months | (410) | (1,091) |
Temporarily Impaired Securities, Held to maturity securities, Fair Value, 12 months or longer | 128,876 | 6,462 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses, 12 months or longer | (2,580) | (98) |
Temporarily Impaired Securities, Held to maturity securities, Fair Value | 179,939 | 151,836 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses | (2,990) | (1,189) |
Temporarily Impaired Securities, Fair Value, Less than 12 months | 51,965 | 162,879 |
Temporarily Impaired Securities, Unrealized Losses, Less than 12 months | (508) | (1,269) |
Temporarily Impaired Securities, Fair Value, 12 months or longer | 293,684 | 189,526 |
Temporarily Impaired Securities, Unrealized Losses, 12 months or longer | (6,727) | (4,074) |
Temporarily Impaired Securities, Fair Value | 345,649 | 352,405 |
Temporarily Impaired Securities, Unrealized Losses | (7,235) | (5,343) |
U.S. GSE Obligations | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Temporarily Impaired Securities, Available for sale securities, Fair Value, Less than 12 months | 4,979 | |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses, Less than 12 months | (21) | |
Temporarily Impaired Securities, Available for sale securities, Fair Value, 12 months or longer | 74,039 | 83,812 |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses, 12 months or longer | (965) | (1,209) |
Temporarily Impaired Securities, Available for sale securities, Fair Value | 74,039 | 88,791 |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses | (965) | (1,230) |
Temporarily Impaired Securities, Held to maturity securities, Fair Value, Less than 12 months | 4,995 | 27,407 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses, Less than 12 months | (5) | (166) |
Temporarily Impaired Securities, Held to maturity securities, Fair Value, 12 months or longer | 27,338 | |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses, 12 months or longer | (233) | |
Temporarily Impaired Securities, Held to maturity securities, Fair Value | 32,333 | 27,407 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses | (238) | (166) |
Mortgage Backed Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Temporarily Impaired Securities, Available for sale securities, Fair Value, Less than 12 months | 12,526 | |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses, Less than 12 months | (157) | |
Temporarily Impaired Securities, Available for sale securities, Fair Value, 12 months or longer | 86,815 | 94,663 |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses, 12 months or longer | (3,121) | (2,649) |
Temporarily Impaired Securities, Available for sale securities, Fair Value | 86,815 | 107,189 |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses | (3,121) | (2,806) |
Temporarily Impaired Securities, Held to maturity securities, Fair Value, Less than 12 months | 30,719 | 115,926 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses, Less than 12 months | (216) | (906) |
Temporarily Impaired Securities, Held to maturity securities, Fair Value, 12 months or longer | 93,225 | 3 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses, 12 months or longer | (2,074) | |
Temporarily Impaired Securities, Held to maturity securities, Fair Value | 123,944 | 115,929 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses | (2,290) | (906) |
Corporate Debt Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Temporarily Impaired Securities, Available for sale securities, Fair Value, Less than 12 months | 902 | |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses, Less than 12 months | (98) | |
Temporarily Impaired Securities, Available for sale securities, Fair Value, 12 months or longer | 3,954 | 3,990 |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses, 12 months or longer | (61) | (45) |
Temporarily Impaired Securities, Available for sale securities, Fair Value | 4,856 | 3,990 |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses | (159) | (45) |
Temporarily Impaired Securities, Held to maturity securities, Fair Value, Less than 12 months | 6,865 | |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses, Less than 12 months | (107) | |
Temporarily Impaired Securities, Held to maturity securities, Fair Value | 6,865 | |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses | (107) | |
Municipal Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Temporarily Impaired Securities, Held to maturity securities, Fair Value, Less than 12 months | 8,484 | 2,041 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses, Less than 12 months | (82) | (19) |
Temporarily Impaired Securities, Held to maturity securities, Fair Value, 12 months or longer | 8,313 | 6,459 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses, 12 months or longer | (273) | (98) |
Temporarily Impaired Securities, Held to maturity securities, Fair Value | 16,797 | 8,500 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses | $ (355) | (117) |
Mutual Funds | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Temporarily Impaired Securities, Available for sale securities, Fair Value, 12 months or longer | 599 | |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses, 12 months or longer | (73) | |
Temporarily Impaired Securities, Available for sale securities, Fair Value | 599 | |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses | $ (73) |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | Dec. 31, 2018USD ($)Security | Dec. 31, 2017USD ($)Security |
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Number of debt securities with unrealized losses | Security | 142 | 118 |
Aggregate depreciation percentage of gross unrealized losses from amortized cost | 2.05% | 1.49% |
Number of equity securities with unrealized losses | Security | 1 | |
Maximum | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Percentage of unrealized loss on amortized cost | 9.79% | 10.90% |
Unrealized loss of amortized cost basis | $ | $ 98,000 | $ 73,000 |
Unrealized dollar loss of amortized cost basis | $ | $ 189,000 | $ 185,000 |
Percentage of unrealized dollar loss on amortized cost | 5.34% | 3.71% |
Investment Securities - Summa_2
Investment Securities - Summary of Gains (Losses) from Sale of Investment Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |||
Amortized cost of securities sold | $ 700 | $ 77,372 | $ 17,632 |
Gain/(loss) realized on securities sold | 2 | (3) | 438 |
Net proceeds from securities sold | $ 702 | $ 77,369 | $ 18,070 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Loans Outstanding by Category (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Loans And Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 1,559,772 | $ 1,350,899 |
Residential Mortgage | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Deferred costs (fees) net of unearned fees | 1,408 | 1,042 |
Total loans | 604,331 | 538,920 |
Residential Mortgage | Mortgages - Fixed Rate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 293,267 | 298,851 |
Residential Mortgage | Mortgages - Adjustable Rate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 309,656 | 239,027 |
Commercial Mortgage | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Deferred costs (fees) net of unearned fees | 82 | 199 |
Total loans | 757,957 | 633,649 |
Commercial Mortgage | Construction | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 44,146 | 35,904 |
Commercial Mortgage | Mortgages - Nonowner Occupied | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 654,394 | 562,203 |
Commercial Mortgage | Mortgages - Owner Occupied | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 59,335 | 35,343 |
Home Equity | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Deferred costs (fees) net of unearned fees | 250 | 255 |
Total loans | 69,336 | 74,444 |
Home Equity | Home Equity - Lines of Credit | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 63,421 | 70,326 |
Home Equity | Home Equity - Term Loans | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 5,665 | 3,863 |
Commercial & Industrial | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 93,728 | 65,305 |
Deferred costs (fees) net of unearned fees | (16) | (10) |
Total loans | 93,712 | 65,295 |
Consumer | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Deferred costs (fees) net of unearned fees | 13 | 16 |
Total loans | 34,436 | 38,591 |
Consumer | Secured | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 33,252 | 37,272 |
Consumer | Unsecured | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | $ 1,171 | $ 1,303 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2018USD ($)Loan | Dec. 31, 2017USD ($)Loan | |
Financing Receivable Modifications [Line Items] | ||
Loans outstanding to directors and officers | $ 488,000 | $ 516,000 |
Loans to directors and officers, additions | 139,000 | 124,000 |
Loans to directors and officers, repayments | $ 167,000 | $ 298,000 |
Number of TDRs defaulted during the period | Loan | 0 | 0 |
Number of loans determined to be troubled debt restructurings | Loan | 3 | 3 |
Troubled debt restructuring carrying value | $ 117,000 | $ 150,000 |
Number of loans modified as troubled debt restructuring | Loan | 0 | 5 |
Pre-modification carrying value | $ 65,000 | |
Post-modification carrying value | $ 48,000 | |
Number of loans designated to be troubled debt restructurings | Loan | 2 | |
Specific reserve for troubled debt restructurings | $ 0 | $ 0 |
Loans secured by one- to-four family residential properties in process of foreclosure | 351,000,000 | 64,000,000 |
Commitments to lend additional funds to borrowers whose loans were on non-accrual status | $ 0 | |
Troubled Debt Restructurings | ||
Financing Receivable Modifications [Line Items] | ||
Troubled debt restructuring carrying value | $ 29,000 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Non-performing Loans Disaggregated by Loan Category (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Troubled debt restructurings | $ 117,000 | $ 150,000 |
Non-Performing Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | 525,000 | 1,148,000 |
Troubled debt restructurings | 117,000 | 150,000 |
Total | 642,000 | 1,298,000 |
Non-Performing Loans | Residential Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | 512,000 | 918,000 |
Troubled debt restructurings | 111,000 | 121,000 |
Total | 623,000 | 1,039,000 |
Non-Performing Loans | Commercial Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | 213,000 | |
Total | 213,000 | |
Non-Performing Loans | Home Equity | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | 13,000 | 17,000 |
Total | 13,000 | 17,000 |
Non-Performing Loans | Commercial & Industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Troubled debt restructurings | 6,000 | 29,000 |
Total | $ 6,000 | $ 29,000 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Loans Receivable Disaggregated by Credit Quality Indicator (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | $ 1,559,772 | $ 1,350,899 |
Residential Mortgage | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 604,331 | 538,920 |
Residential Mortgage | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 603,708 | 537,881 |
Residential Mortgage | Non-Performing Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 623 | 1,039 |
Home Equity | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 69,336 | 74,444 |
Home Equity | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 69,323 | 74,427 |
Home Equity | Non-Performing Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 13 | 17 |
Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 34,436 | 38,591 |
Consumer | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 34,436 | 38,591 |
Commercial Mortgage | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 757,957 | 633,649 |
Commercial Mortgage | 1-6 (Pass) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 753,338 | 629,852 |
Commercial Mortgage | 7 (Special Mention) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 4,619 | 3,584 |
Commercial Mortgage | 8 (Substandard) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 213 | |
Commercial & Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 93,712 | 65,295 |
Commercial & Industrial | 1-6 (Pass) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 85,821 | 56,755 |
Commercial & Industrial | 7 (Special Mention) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 4,186 | 8,126 |
Commercial & Industrial | 8 (Substandard) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | $ 3,705 | $ 414 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Schedule of Loans Receivable Disaggregated by Past Due Status (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | $ 1,614 | $ 2,349 |
Current Loans | 1,558,158 | 1,348,550 |
Total loans | 1,559,772 | 1,350,899 |
30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 1,142 | 1,530 |
60-89 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 121 | 738 |
90 Days or Greater | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 351 | 81 |
Residential Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 1,506 | 2,123 |
Current Loans | 602,825 | 536,797 |
Total loans | 604,331 | 538,920 |
Residential Mortgage | 30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 1,034 | 1,353 |
Residential Mortgage | 60-89 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 121 | 706 |
Residential Mortgage | 90 Days or Greater | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 351 | 64 |
Commercial Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 32 | |
Current Loans | 757,957 | 633,617 |
Total loans | 757,957 | 633,649 |
Commercial Mortgage | 60-89 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 32 | |
Commercial & Industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Current Loans | 93,712 | 65,295 |
Total loans | 93,712 | 65,295 |
Consumer loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 108 | 176 |
Current Loans | 34,328 | 38,415 |
Total loans | 34,436 | 38,591 |
Consumer loans | 30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 108 | 176 |
Home Equity | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 18 | |
Current Loans | 69,336 | 74,426 |
Total loans | $ 69,336 | 74,444 |
Home Equity | 30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 1 | |
Home Equity | 90 Days or Greater | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | $ 17 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Information Pertaining to Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
With no required reserve recorded, Carrying Value | $ 740 | $ 1,232 | $ 630 |
With no required reserve recorded, Average Carrying Value | 768 | 1,282 | 647 |
With no required reserve recorded, Unpaid Principal Balance | 927 | 1,475 | 813 |
With no required reserve recorded, Interest Income Recognized | 6 | 5 | 1 |
With required reserve recorded, Carrying Value | 64 | 788 | |
With required reserve recorded, Average Carrying Value | 66 | 802 | |
With required reserve recorded, Unpaid Principal Balance | 64 | 804 | |
With required reserve recorded, Related Allowance | 93 | 190 | |
With required reserve recorded, Interest Income Recognized | 1 | 23 | |
Carrying Value | 740 | 1,296 | 1,418 |
Average Carrying Value | 768 | 1,348 | 1,449 |
Unpaid Principal Balance | 927 | 1,539 | 1,617 |
Interest Income Recognized | 6 | 6 | 24 |
Commercial and Industrial | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
With no required reserve recorded, Carrying Value | 6 | 29 | |
With no required reserve recorded, Average Carrying Value | 17 | 36 | |
With no required reserve recorded, Unpaid Principal Balance | 6 | 29 | |
With no required reserve recorded, Interest Income Recognized | 1 | 2 | |
With required reserve recorded, Carrying Value | 289 | ||
With required reserve recorded, Average Carrying Value | 297 | ||
With required reserve recorded, Unpaid Principal Balance | 295 | ||
With required reserve recorded, Related Allowance | 114 | ||
With required reserve recorded, Interest Income Recognized | 2 | ||
Carrying Value | 6 | 29 | 289 |
Average Carrying Value | 17 | 36 | 297 |
Unpaid Principal Balance | 6 | 29 | 295 |
Interest Income Recognized | 1 | 2 | 2 |
Commercial Mortgage | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
With no required reserve recorded, Carrying Value | 213 | ||
With no required reserve recorded, Average Carrying Value | 224 | ||
With no required reserve recorded, Unpaid Principal Balance | 227 | ||
With no required reserve recorded, Interest Income Recognized | 3 | ||
Carrying Value | 213 | ||
Average Carrying Value | 224 | ||
Unpaid Principal Balance | 227 | ||
Interest Income Recognized | 3 | ||
Residential Mortgage | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
With no required reserve recorded, Carrying Value | 634 | 904 | 528 |
With no required reserve recorded, Average Carrying Value | 647 | 931 | 542 |
With no required reserve recorded, Unpaid Principal Balance | 786 | 1,103 | 687 |
With no required reserve recorded, Interest Income Recognized | 4 | ||
With required reserve recorded, Carrying Value | 64 | 499 | |
With required reserve recorded, Average Carrying Value | 66 | 505 | |
With required reserve recorded, Unpaid Principal Balance | 64 | 509 | |
With required reserve recorded, Related Allowance | 93 | 76 | |
With required reserve recorded, Interest Income Recognized | 1 | 21 | |
Carrying Value | 634 | 968 | 1,027 |
Average Carrying Value | 647 | 997 | 1,047 |
Unpaid Principal Balance | 786 | 1,167 | 1,196 |
Interest Income Recognized | 4 | 1 | 21 |
Home Equity | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
With no required reserve recorded, Carrying Value | 100 | 86 | 102 |
With no required reserve recorded, Average Carrying Value | 104 | 91 | 105 |
With no required reserve recorded, Unpaid Principal Balance | 135 | 116 | 126 |
With no required reserve recorded, Interest Income Recognized | 1 | 1 | |
Carrying Value | 100 | 86 | 102 |
Average Carrying Value | 104 | 91 | 105 |
Unpaid Principal Balance | 135 | $ 116 | 126 |
Interest Income Recognized | $ 1 | $ 1 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Summary of Changes in Allowance for Loan Losses Disaggregated by Loan Type (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for loan losses, Beginning balance | $ 15,320 | $ 15,261 | $ 15,191 |
Charge-offs | (109) | (323) | (104) |
Recoveries | 55 | 20 | 42 |
Provision for (Release of) | 1,502 | 362 | 132 |
Allowance for loan losses, Ending balance | 16,768 | 15,320 | 15,261 |
Residential Mortgage | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for loan losses, Beginning balance | 5,047 | 4,898 | 5,244 |
Change in methodology | 336 | ||
Recoveries | 13 | ||
Provision for (Release of) | (101) | 149 | (695) |
Allowance for loan losses, Ending balance | 4,946 | 5,047 | 4,898 |
Commercial Mortgage | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for loan losses, Beginning balance | 8,289 | 8,451 | 8,094 |
Change in methodology | (377) | ||
Recoveries | 7 | ||
Provision for (Release of) | 1,337 | (162) | 727 |
Allowance for loan losses, Ending balance | 9,626 | 8,289 | 8,451 |
Home Equity | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for loan losses, Beginning balance | 630 | 651 | 699 |
Change in methodology | (3) | ||
Recoveries | 1 | ||
Provision for (Release of) | (113) | (21) | (46) |
Allowance for loan losses, Ending balance | 517 | 630 | 651 |
Commercial & Industrial | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for loan losses, Beginning balance | 946 | 807 | 615 |
Change in methodology | 136 | ||
Charge-offs | (73) | (284) | (71) |
Recoveries | 48 | 13 | 14 |
Provision for (Release of) | 494 | 410 | 113 |
Allowance for loan losses, Ending balance | 1,415 | 946 | 807 |
Consumer | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for loan losses, Beginning balance | 315 | 264 | 354 |
Change in methodology | (92) | ||
Charge-offs | (36) | (39) | (33) |
Recoveries | 7 | 7 | 7 |
Provision for (Release of) | (22) | 83 | 28 |
Allowance for loan losses, Ending balance | 264 | 315 | 264 |
Impaired | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for loan losses, Beginning balance | 93 | 190 | 174 |
Provision for (Release of) | $ (93) | (97) | 16 |
Allowance for loan losses, Ending balance | $ 93 | 190 | |
Unallocated | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for loan losses, Beginning balance | 11 | ||
Provision for (Release of) | $ (11) |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Summary of Allowance for Loan Losses and Related Loans Receivable Disaggregated by Impairment Method (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Individually evaluated for impairment | $ 93 | |
Collectively evaluated for impairment | $ 16,768 | 15,227 |
Allowance for loan losses | 16,768 | 15,320 |
Individually evaluated for impairment | 740 | 1,296 |
Collectively evaluated for impairment | 1,559,032 | 1,349,603 |
Total loans | 1,559,772 | 1,350,899 |
Residential Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Individually evaluated for impairment | 93 | |
Collectively evaluated for impairment | 4,945 | 5,047 |
Allowance for loan losses | 4,945 | 5,140 |
Individually evaluated for impairment | 647 | 968 |
Collectively evaluated for impairment | 603,684 | 537,952 |
Total loans | 604,331 | 538,920 |
Commercial Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Collectively evaluated for impairment | 9,626 | 8,289 |
Allowance for loan losses | 9,626 | 8,289 |
Individually evaluated for impairment | 213 | |
Collectively evaluated for impairment | 757,957 | 633,436 |
Total loans | 757,957 | 633,649 |
Home Equity | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Collectively evaluated for impairment | 517 | 630 |
Allowance for loan losses | 517 | 630 |
Individually evaluated for impairment | 88 | 86 |
Collectively evaluated for impairment | 69,248 | 74,358 |
Total loans | 69,336 | 74,444 |
Commercial & Industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Collectively evaluated for impairment | 1,415 | 946 |
Allowance for loan losses | 1,415 | 946 |
Individually evaluated for impairment | 5 | 29 |
Collectively evaluated for impairment | 93,707 | 65,266 |
Total loans | 93,712 | 65,295 |
Consumer | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Collectively evaluated for impairment | 265 | 315 |
Allowance for loan losses | 265 | 315 |
Collectively evaluated for impairment | 34,436 | 38,591 |
Total loans | $ 34,436 | $ 38,591 |
Federal Home Loan Bank of Bos_2
Federal Home Loan Bank of Boston Stock - Additional Information (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Federal Home Loan Bank Stock [Line Items] | ||
Federal Home Loan Bank of Boston Stock, at cost | $ 6,844,000 | $ 4,242,000 |
Federal Home Loan Bank of Boston | ||
Federal Home Loan Bank Stock [Line Items] | ||
Federal Home Loan Bank of Boston Stock, at cost | 6,800,000 | 4,200,000 |
Impairment on investment of federal home loan bank stock | $ 0 | $ 0 |
Banking Premises and Equipmen_2
Banking Premises and Equipment - Summary of Cost and Accumulated Depreciation and Amortization of Property, Leasehold Improvements and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Line Items] | ||
Banking premises and equipment, Subtotal | $ 24,988 | $ 25,149 |
Accumulated depreciation and amortization | (16,410) | (15,839) |
Total | 8,578 | 9,310 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Banking premises and equipment, Subtotal | 1,116 | 1,116 |
Building and leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Banking premises and equipment, Subtotal | $ 12,175 | 12,839 |
Building and leasehold improvements | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Building and leasehold improvements | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Estimated Useful Lives | 30 years | |
Equipment, including vaults | ||
Property Plant And Equipment [Line Items] | ||
Banking premises and equipment, Subtotal | $ 11,613 | 11,185 |
Equipment, including vaults | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Equipment, including vaults | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Estimated Useful Lives | 20 years | |
Work in process | ||
Property Plant And Equipment [Line Items] | ||
Banking premises and equipment, Subtotal | $ 84 | $ 9 |
Banking Premises and Equipmen_3
Banking Premises and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 1.9 | $ 1.9 | $ 2.1 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite Lived Intangible Assets [Line Items] | |||
Carrying value of goodwill | $ 412,000 | $ 412,000 | |
Impairment of goodwill recognized | 0 | 0 | |
Mortgage Servicing Rights | |||
Finite Lived Intangible Assets [Line Items] | |||
Loans held for sale | 0 | 0 | |
Amount of mortgage loans sold and servicing rights retained | 1,600,000 | 11,900,000 | $ 50,000,000 |
Net gains recognized in gain on loans held for sale | 36,000 | 182,000 | $ 998,000 |
Fair value of mortgage servicing rights portfolio | $ 1,000,000 | $ 1,000,000 | |
Weighted average amortization period | 7 years 6 months | 7 years 3 months 18 days |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Beginning Balance, Mortgage servicing rights | $ 823 | $ 842 | $ 499 |
Mortgage servicing rights capitalized, Mortgage servicing rights | 20 | 132 | 545 |
Amortization charged against servicing income, Mortgage servicing rights | (147) | (151) | (202) |
Change in impairment reserve, Mortgage servicing rights | (30) | 0 | 0 |
Ending Balance, Mortgage servicing rights | 666 | 823 | 842 |
Beginning Balance, Valuation allowance | (30) | (30) | (8) |
Mortgage servicing rights capitalized, Valuation allowance | 0 | 0 | 0 |
Amortization charged against servicing income, Valuation allowance | 0 | 0 | 0 |
Change in impairment reserve, Valuation allowance | 30 | 0 | (22) |
Ending Balance, Valudation allowance | 0 | (30) | (30) |
Beginning Balance, Total | 793 | 812 | 491 |
Mortgage servicing rights capitalized, Total | 20 | 132 | 545 |
Amortization charged against servicing income, Total | (147) | (151) | (202) |
Change in impairment reserve, Total | 0 | 0 | (22) |
Ending Balance, Total | $ 666 | $ 793 | $ 812 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Aggregate Estimated Future Amortization Expense (Details) - Mortgage Servicing Rights $ in Thousands | Dec. 31, 2018USD ($) |
Future Amortization Expense | |
2019 | $ 84 |
2020 | 75 |
2021 | 67 |
2022 | 59 |
2023 | 52 |
Thereafter | 329 |
Total | $ 666 |
Deposits - Summary of Deposits
Deposits - Summary of Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
Demand deposits (non-interest bearing) | $ 494,492 | $ 493,613 |
Interest bearing checking | 431,702 | 462,957 |
Money market | 135,585 | 69,259 |
Savings | 628,212 | 589,741 |
Retail certificates of deposit under $100,000 | 36,223 | 38,068 |
Retail certificates of deposit $100,000 or greater | 57,692 | 69,093 |
Wholesale certificates of deposit | 27,504 | 52,669 |
Total deposits | $ 1,811,410 | $ 1,775,400 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
Less than 3 months remaining | $ 24,219 | $ 40,716 |
3 to 5 months remaining | 17,486 | 19,107 |
6 to 11 months remaining | 37,987 | 30,545 |
12 to 23 months remaining | 28,529 | 42,421 |
24 to 47 months remaining | 9,652 | 20,017 |
48 months or more remaining | 3,546 | 7,024 |
Total certificates of deposit | $ 121,419 | $ 159,830 |
Deposits - Additional Informati
Deposits - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Deposits [Abstract] | |||
Interest expense on retail certificates of deposit $100,000 or greater | $ 467,000 | $ 446,000 | $ 475,000 |
Certificates of deposit, at or above FDIC insurance limit of 250,000 | 31,800,000 | 44,700,000 | |
Deposit accounts of directors, executive officers and their respective affiliates | $ 6,800,000 | $ 3,100,000 |
Borrowings - Schedule of Inform
Borrowings - Schedule of Information Relating to Short-term Borrowings (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Advances From Federal Home Loan Banks [Abstract] | ||
Ending balance | $ 90,000,000 | |
Average daily balance | 15,183,000 | $ 32,418,000 |
Highest month-end balance | $ 90,000,000 | $ 110,000,000 |
Weighted average interest rate | 2.47% | 1.21% |
Borrowings - Schedule of Info_2
Borrowings - Schedule of Information Relating to Long-term Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Federal Home Loan Banks [Abstract] | ||
FHLB of Boston long-term advances due amortizing, amount | $ 3,409 | $ 3,579 |
FHLB of Boston long-term advances due amortizing, interest rate | 1.94% | 1.94% |
Borrowings - Schedule of Info_3
Borrowings - Schedule of Information Relating to Long-term Borrowings (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Federal Home Loan Banks [Abstract] | |
FHLB of long-term advances due date | Sep. 1, 2020 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Percentage of market value, secured blanket lien on qualified collateral | 90.00% | |
Percentage of carrying value, secured blanket lien on qualified collateral | 75.00% | |
Unused borrowing capacity based upon collateral pledged | $ 320.1 | |
Commercial Real Estate And Commercial And Industrial Loans | Line of Credit | ||
Debt Instrument [Line Items] | ||
Collateral pledged amount | 291.7 | $ 287.6 |
FRB Boston | Commercial Real Estate And Commercial And Industrial Loans | ||
Debt Instrument [Line Items] | ||
Line of credit unused borrowing capacity | $ 167.5 | $ 158 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||
Tax cuts and jobs act of 2017, one-time non-cash write-down of net deferred tax assets | $ 3,900,000 | ||
Federal tax rate | 21.00% | 35.00% | 35.00% |
Tax rate deferred tax assets were measured | 21.00% | ||
Deferred tax assets, valuation allowance | $ 0 | $ 0 | |
Unrecognized tax benefits | 0 | 0 | |
Tax benefit resulting from share based compensation | 729,000 | $ 427,000 | $ 407,000 |
Accounting Standards Update 2016-09 | |||
Income Taxes [Line Items] | |||
Tax benefit resulting from share based compensation | $ 225,000 | ||
Federal Income Tax | Earliest Tax Year | |||
Income Taxes [Line Items] | |||
Income tax returns year open and subject to examination | 2015 | ||
State Income Tax | Earliest Tax Year | |||
Income Taxes [Line Items] | |||
Income tax returns year open and subject to examination | 2015 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current | |||||||||||
Federal | $ 5,524 | $ 8,446 | $ 7,551 | ||||||||
State | 2,404 | 2,225 | 1,833 | ||||||||
Total current expense | 7,928 | 10,671 | 9,384 | ||||||||
Deferred | |||||||||||
Federal | (490) | 2,948 | (645) | ||||||||
State | (231) | (261) | (183) | ||||||||
Total deferred | (721) | 2,687 | (828) | ||||||||
Total income tax expense | $ 1,585 | $ 2,105 | $ 1,901 | $ 1,616 | $ 6,371 | $ 2,694 | $ 2,309 | $ 1,984 | $ 7,207 | $ 13,358 | $ 8,556 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Total Income Tax Provision, Calculated at Statutory Federal Income Tax Rates, to Income Tax Expense in Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Provision at statutory rates | $ 6,528 | $ 9,861 | $ 8,908 | ||||||||
Increase/(decrease) resulting from: | |||||||||||
State tax, net of federal tax benefit | 1,717 | 1,277 | 1,073 | ||||||||
Tax-exempt income | (580) | (1,079) | (1,099) | ||||||||
ESOP dividends | (127) | (216) | (214) | ||||||||
Bank owned life insurance | (140) | (205) | (214) | ||||||||
Benefit from stock compensation | (168) | (190) | |||||||||
Impact of Tax Cuts and Jobs Act | 3,870 | ||||||||||
Other | (23) | 40 | 102 | ||||||||
Total income tax expense | $ 1,585 | $ 2,105 | $ 1,901 | $ 1,616 | $ 6,371 | $ 2,694 | $ 2,309 | $ 1,984 | $ 7,207 | $ 13,358 | $ 8,556 |
Provision at statutory rates, Rate | 21.00% | 35.00% | 35.00% | ||||||||
Increase/(decrease) resulting from: (Rate) | |||||||||||
State tax, net of federal tax benefit, Rate | 5.52% | 4.53% | 4.22% | ||||||||
Tax-exempt income, Rate | (1.87%) | (3.83%) | (4.32%) | ||||||||
ESOP dividends, Rate | (0.41%) | (0.77%) | (0.84%) | ||||||||
Bank owned life insurance, Rate | (0.45%) | (0.73%) | (0.84%) | ||||||||
Benefit from stock compensation, Rate | (0.54%) | (0.67%) | |||||||||
Impact of Tax Cuts and Jobs Act, Rate | 13.74% | ||||||||||
Other, Rate | (0.07%) | 0.15% | 0.40% | ||||||||
Total income tax expense, Rate | 23.18% | 47.42% | 33.62% |
Income Taxes - Summary of Net D
Income Taxes - Summary of Net Deferred Tax Asset (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Gross deferred tax assets | ||
Allowance for loan losses | $ 4,715 | $ 4,306 |
Accrued retirement benefits | 2,082 | 2,430 |
Unrealized losses on AFS securities | 957 | 905 |
Incentive compensation | 1,189 | 1,082 |
Equity based compensation | 849 | 351 |
Rent | 333 | 266 |
ESOP dividends | 169 | 174 |
Other | 155 | 164 |
Total gross deferred tax assets | 10,449 | 9,678 |
Gross deferred tax liabilities | ||
Deferred loan origination costs | (459) | (401) |
Depreciation of premises and equipment | (678) | (667) |
Mortgage servicing rights | (187) | (223) |
Goodwill | (114) | (114) |
Derivative transactions | (294) | |
Total gross deferred tax liabilities | (1,732) | (1,405) |
Net deferred tax asset | $ 8,717 | $ 8,273 |
Pension and Retirement Plans -
Pension and Retirement Plans - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit pension highest consecutive plan period | 5 years | 3 years | |
Defined contribution plan, employer matching contribution, percent | 10.00% | ||
Transfers between fair value levels | $ 0 | $ 0 | |
Minimum | Domestic Large Cap Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation percentages | 30.00% | ||
Minimum | Domestic Small/Mid Cap Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation percentages | 5.00% | ||
Minimum | International Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation percentages | 0.00% | ||
Minimum | Cash and Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation percentages | 20.00% | ||
Maximum | Domestic Large Cap Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation percentages | 60.00% | ||
Maximum | Domestic Small/Mid Cap Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation percentages | 20.00% | ||
Maximum | International Equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation percentages | 20.00% | ||
Maximum | Cash and Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target asset allocation percentages | 50.00% | ||
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, description | The Company has a noncontributory, defined benefit pension plan (“Pension Plan”) covering substantially all employees hired before May 2, 2011. Employees in positions requiring at least 1,000 hours of service per year were eligible to participate upon the attainment of age 21 and the completion of 12 months of service. Benefits are based primarily on years of service and the employee’s average monthly pay during the five highest consecutive plan years of the employee’s final ten years. On October 23, 2017, the Company announced its decision to freeze the accrual of benefits within the Pension Plan, effective December 31, 2017. The Company also provides supplemental retirement benefits to certain current and former executive officers of the Company under the terms of Supplemental Executive Retirement Agreements (“Supplemental Retirement Plan”). | ||
Minimum number of hours of service per year required for eligibility | 1000 hours | ||
Employee eligibility age under the plan | 21 years | ||
Minimum number of years of service required for eligibility | 12 months | ||
Long-term rate of return on asset assumption | 6.50% | 7.00% | |
Employer contribution | $ 0 | ||
Supplemental Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit pension highest consecutive plan period | 3 years | ||
Defined contribution plan, employer matching contribution, percent | 10.00% | ||
Employer contribution | 538,000 | $ 500,000 | |
Postretirement Medical Coverage | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employee eligibility age under the plan | 65 years | ||
Employer contribution | $ 33,000 | $ 30,000 | |
Profit Sharing Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, maximum employee contribution, percent | 100.00% | ||
Defined contribution plan, employer matching contribution, percent | 4.00% | 3.00% | |
Defined contribution plan, minimum number of hours of service per year required for eligibility | 1000 hours | ||
Defined contribution plan, minimum service period required for eligibility | 12 months | ||
Profit Sharing Plan | 401(k) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, maximum employee contribution, percent | 100.00% | ||
Profit Sharing Plan | Discretionary Contribution | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, minimum number of hours of service per year required for eligibility | 1000 hours | ||
Defined contribution plan, minimum service period required for eligibility | 12 months | ||
Normal retirement age of employees | 65 years | ||
Profit Sharing Plan | Minimum | 401(k) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer matching contribution, percent | 3.00% | ||
Profit Sharing Plan | Maximum | 401(k) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer matching contribution, percent | 4.00% | ||
Employee Stock Ownership Plan (ESOP) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, minimum number of hours of service per year required for eligibility | 1000 hours | ||
Defined contribution plan, minimum service period required for eligibility | 12 months | ||
Employee Stock Ownership Plan (ESOP) | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employee eligibility age under the plan | 21 years | ||
Profit Sharing and ESOP Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution expense related to plans | $ 2,600,000 | $ 1,500,000 | $ 949,000 |
Defined Contribution SERP Plan (“DC SERP”) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer matching contribution, percent | 10.00% | ||
Contribution expense related to plans | $ 209,000 | $ 126,000 | $ 68,000 |
Pension and Retirement Plans _2
Pension and Retirement Plans - Schedule of Projected Benefit Obligations and Funded Status (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plan | ||
Change in projected benefit obligation | ||
Obligation at beginning of year | $ 43,943,000 | $ 43,915,000 |
Service cost | 1,500,000 | |
Interest cost | 1,557,000 | 1,826,000 |
Effect of curtailment | (7,366,000) | |
Actuarial loss/(gain) | (3,659,000) | 5,313,000 |
Benefits paid | (1,319,000) | (1,245,000) |
Obligation at end of year | 40,522,000 | 43,943,000 |
Change in plan assets | ||
Fair value at beginning of year | 45,247,000 | 39,821,000 |
Actual return on plan assets | (1,280,000) | 6,671,000 |
Employer contribution | 0 | |
Benefits paid | (1,319,000) | (1,245,000) |
Fair value at end of year | 42,648,000 | 45,247,000 |
Funded (underfunded) status at end of year | 2,126,000 | 1,304,000 |
Supplemental Retirement Plan | ||
Change in projected benefit obligation | ||
Obligation at beginning of year | 9,204,000 | 8,891,000 |
Service cost | 354,000 | 267,000 |
Interest cost | 309,000 | 364,000 |
Actuarial loss/(gain) | (499,000) | 182,000 |
Benefits paid | (538,000) | (500,000) |
Obligation at end of year | 8,830,000 | 9,204,000 |
Change in plan assets | ||
Employer contribution | 538,000 | 500,000 |
Benefits paid | (538,000) | (500,000) |
Funded (underfunded) status at end of year | (8,830,000) | (9,204,000) |
Postretirement Healthcare Plan | ||
Change in projected benefit obligation | ||
Obligation at beginning of year | 617,000 | 568,000 |
Service cost | 23,000 | 19,000 |
Interest cost | 22,000 | 23,000 |
Actuarial loss/(gain) | (30,000) | 37,000 |
Benefits paid | (34,000) | (30,000) |
Obligation at end of year | 598,000 | 617,000 |
Change in plan assets | ||
Employer contribution | 33,000 | 30,000 |
Benefits paid | (33,000) | (30,000) |
Funded (underfunded) status at end of year | $ (598,000) | $ (617,000) |
Pension and Retirement Plans _3
Pension and Retirement Plans - Schedule of Amounts Recognized in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets/(liabilities) | $ 2,126 | $ 1,304 |
Supplemental Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets/(liabilities) | (8,830) | (9,204) |
Postretirement Healthcare Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets/(liabilities) | $ (598) | $ (617) |
Pension and Retirement Plans _4
Pension and Retirement Plans - Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss/(gain) | $ 5,427 | $ 5,021 |
Prior service (benefit) | (12) | (16) |
Total | 5,415 | 5,005 |
Supplemental Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss/(gain) | 358 | 861 |
Total | 358 | 861 |
Postretirement Healthcare Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss/(gain) | (113) | (82) |
Total | $ (113) | $ (82) |
Pension and Retirement Plans _5
Pension and Retirement Plans - Certain Disaggregated Information to Retirement Plans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | $ 40,522 | $ 43,943 | $ 43,915 |
Accumulated benefit obligation | 40,522 | 43,943 | |
Fair value of plan assets | 42,648 | 45,247 | 39,821 |
Funded status at end of year | 2,126 | 1,304 | |
Supplemental Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | 8,830 | 9,204 | $ 8,891 |
Accumulated benefit obligation | 8,567 | 9,028 | |
Funded status at end of year | $ (8,830) | $ (9,204) |
Pension and Retirement Plans _6
Pension and Retirement Plans - Components of Net Periodic Benefit Cost and Amounts Recognized in Other Comprehensive Income/ (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amounts recognized in other comprehensive income/( loss) | |||
Total recognized in other comprehensive income/( loss) | $ (124) | $ (6,545) | $ 738 |
Pension Plan | |||
Net periodic benefit cost | |||
Service cost | 1,500 | ||
Interest cost | 1,557 | 1,826 | |
Expected return on assets | (2,891) | (2,741) | |
Amortization of prior service credit | (4) | (4) | |
Amortization of net actuarial loss/(gain) | 106 | 794 | |
Net periodic benefit cost | (1,232) | 1,375 | |
Amounts recognized in other comprehensive income/( loss) | |||
Net actuarial loss/(gain) | 512 | 1,383 | |
Amortization of prior service credit | 4 | 4 | |
Amortization of net actuarial gain | (106) | (794) | |
Curtailment gain | (7,366) | ||
Total recognized in other comprehensive income/( loss) | 410 | (6,773) | |
Total recognized in net periodic benefit cost and other comprehensive income/( loss) | (822) | (5,398) | |
Supplemental Retirement Plan | |||
Net periodic benefit cost | |||
Service cost | 354 | 267 | |
Interest cost | 309 | 364 | |
Amortization of net actuarial loss/(gain) | 4 | ||
Net periodic benefit cost | 667 | 631 | |
Amounts recognized in other comprehensive income/( loss) | |||
Net actuarial loss/(gain) | (499) | 182 | |
Amortization of prior service credit | (4) | ||
Total recognized in other comprehensive income/( loss) | (503) | 182 | |
Total recognized in net periodic benefit cost and other comprehensive income/( loss) | 164 | 813 | |
Postretirement Healthcare Plan | |||
Net periodic benefit cost | |||
Service cost | 23 | 19 | |
Interest cost | 22 | 23 | |
Amortization of net actuarial loss/(gain) | (9) | ||
Net periodic benefit cost | 45 | 33 | |
Amounts recognized in other comprehensive income/( loss) | |||
Net actuarial loss/(gain) | (30) | 37 | |
Amortization of net actuarial gain | 9 | ||
Total recognized in other comprehensive income/( loss) | (30) | 46 | |
Total recognized in net periodic benefit cost and other comprehensive income/( loss) | $ 15 | $ 79 |
Pension and Retirement Plans _7
Pension and Retirement Plans - Schedule of Weighted-average Assumptions Used to Determine Projected Benefit Obligations and Net Periodic Benefit Cost (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.23% | 3.58% |
Rate of compensation increase | 4.00% | |
Discount rate | 3.58% | 4.25% |
Expected long-term return on plan assets | 6.50% | 7.00% |
Rate of compensation increase | 4.00% | |
Supplemental Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.10% | 3.39% |
Rate of compensation increase | 4.00% | 4.00% |
Discount rate | 3.39% | 4.25% |
Rate of compensation increase | 4.00% | 4.00% |
Postretirement Healthcare Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.22% | 3.58% |
Discount rate | 3.58% | 4.25% |
Pension and Retirement Plans _8
Pension and Retirement Plans - Schedule of Pension Plan Weighted-average Asset Allocations by Asset (Details) | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations percentage | 100.00% | 100.00% |
Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations percentage | 60.00% | 65.00% |
Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations percentage | 35.00% | 29.00% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations percentage | 1.00% | 2.00% |
Cash and Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations percentage | 4.00% | 4.00% |
Pension and Retirement Plans _9
Pension and Retirement Plans - Summary of Various Categories of Pension Plan Assets (Details) - Pension Plan - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 42,648 | $ 45,247 | $ 39,821 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 36,114 | 37,955 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 6,534 | 7,292 | |
Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 3,520 | 1,627 | |
Cash and Cash Equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 3,520 | 1,627 | |
Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 6,534 | 7,292 | |
Fixed Income | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 6,534 | 7,292 | |
Common Stock, Large Cap Core | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 16,127 | 18,026 | |
Common Stock, Large Cap Core | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 16,127 | 18,026 | |
Common Stock, Mid Cap Core | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 56 | ||
Common Stock, Mid Cap Core | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 56 | ||
Common Stock, Small Cap Core | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 2,090 | 2,333 | |
Common Stock, Small Cap Core | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 2,090 | 2,333 | |
Mutual Funds, Domestic Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 4,320 | 4,564 | |
Mutual Funds, Domestic Equity | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 4,320 | 4,564 | |
Mutual Funds, International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 3,409 | 3,818 | |
Mutual Funds, International | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 3,409 | 3,818 | |
Mutual Funds, Domestic Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 6,648 | 7,531 | |
Mutual Funds, Domestic Fixed Income | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 6,648 | $ 7,531 |
Pension and Retirement Plans_10
Pension and Retirement Plans - Information to Retirement Plans with Accumulated Benefit Obligation in Excess of Plan Assets (Details) - Postretirement Healthcare Plan - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 598 | $ 617 |
Accumulated benefit obligation | $ 598 | $ 617 |
Pension and Retirement Plans_11
Pension and Retirement Plans - Schedule of Assumed Health Care Cost Trend Rates (Details) - Postretirement Healthcare Plan | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Health care cost trend rate assumed for next year | 4.00% | 4.00% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.00% | 4.00% |
Year that the rate reaches the ultimate trend rate | 2018 | 2017 |
Pension and Retirement Plans_12
Pension and Retirement Plans - Schedule of Effect on One-percentage-point Change in Assumed Health Care Cost Trend Rates (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |
Effect on postretirement benefit obligation, one percentage point increase | $ 4 |
Effect on postretirement benefit obligation, one percentage point decrease | $ (4) |
Pension and Retirement Plans_13
Pension and Retirement Plans - Schedule of Benefits Expected to be Paid in the Next Ten Years (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Year-ended December 31, | |
2019 | $ 2,195 |
2020 | 2,357 |
2021 | 2,416 |
2022 | 2,571 |
2023 | 2,684 |
2024-2028 inclusive | 14,532 |
Ten year total | 26,755 |
Pension Plan | |
Year-ended December 31, | |
2019 | 1,585 |
2020 | 1,748 |
2021 | 1,811 |
2022 | 1,947 |
2023 | 2,063 |
2024-2028 inclusive | 11,479 |
Ten year total | 20,633 |
Supplemental Retirement Plan | |
Year-ended December 31, | |
2019 | 577 |
2020 | 575 |
2021 | 572 |
2022 | 590 |
2023 | 587 |
2024-2028 inclusive | 2,882 |
Ten year total | 5,783 |
Postretirement Healthcare Plan | |
Year-ended December 31, | |
2019 | 33 |
2020 | 34 |
2021 | 33 |
2022 | 34 |
2023 | 34 |
2024-2028 inclusive | 171 |
Ten year total | $ 339 |
Pension and Retirement Plans_14
Pension and Retirement Plans - Schedule of Estimated Amounts That will be Amortized from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service cost | $ (4) |
Net (gain)/loss | 148 |
Total | 144 |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service cost | (4) |
Net (gain)/loss | 152 |
Total | 148 |
Postretirement Healthcare Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Net (gain)/loss | (4) |
Total | $ (4) |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding stock options | 0 | 16,377 | 45,612 |
DSP Plan and 2017 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total shares issued under this plan | 4,164 | 3,672 | |
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options time-vest period | 5 years | ||
Options expire period | 10 years | ||
Restricted Stock | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options time-vest period | 3 years | ||
Restricted Stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options time-vest period | 5 years | ||
Performance-Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options time-vest period | 3 years | ||
Time Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options time-vest period | 3 years |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Options Transactions and Changes (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Number of Options, Outstanding at beginning of year | 16,377 | 45,612 |
Number of Options, Expired | (2,600) | (4,500) |
Number of Options, Exercised | (13,777) | (24,735) |
Number of Options, Outstanding at end of year | 0 | 16,377 |
Number of Options, Exercisable at end of year | 16,377 | |
Weighted Average Exercise Price, Outstanding at beginning of year | $ 29.21 | $ 30.23 |
Weighted Average Exercise Price, Expired | 29.21 | 30.11 |
Weighted Average Exercise Price, Exercised | $ 29.21 | 30.93 |
Weighted Average Exercise Price, Outstanding at end of year | 29.21 | |
Weighted Average Exercise Price, Exercisable at end of year | $ 29.21 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Non-vested Restricted Shares Outstanding (Details) - Restricted Stock - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Non-vested at beginning of year | 43,240 | 41,957 |
Number of Shares, Granted | 17,373 | 18,906 |
Number of Shares, Vested | (15,760) | (14,113) |
Number of Shares, Forfeited | (3,542) | (3,510) |
Number of Shares, Non-vested at end of year | 41,311 | 43,240 |
Weighted Average Grant Value, Non-vested at beginning of year | $ 53.13 | $ 44.17 |
Weighted Average Grant Value, Granted | 80.43 | 64.62 |
Weighted Average Grant Value, Vested | 50.10 | 42.62 |
Weighted Average Grant Value, Forfeited | 60.84 | 49.19 |
Weighted Average Grant Value, Non-vested at end of year | $ 65.10 | $ 53.13 |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Non-vested Performance-Based Restricted Stock Units Outstanding (Details) - Performance-Based Restricted Stock Units - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Units, Non-vested at beginning of year | 21,613 | 25,941 |
Number of Units, Granted | 23,511 | 12,079 |
Number of Units, Forfeited | (3,713) | (8,597) |
Number of Units, Expired (Performance not achieved) | (7,810) | |
Number of Units, Non-vested at end of year | 41,411 | 21,613 |
Weighted Average Grant Value, Non-vested at beginning of year | $ 56.05 | $ 45.17 |
Weighted Average Grant Value, Granted | 76.56 | 64.72 |
Weighted Average Grant Value, Forfeited | 70.68 | 46.19 |
Weighted Average Grant Value, Expired (Performance not achieved) | 44.17 | |
Weighted Average Grant Value, Non-vested at end of year | $ 66.39 | $ 56.05 |
Share-Based Compensation - Su_4
Share-Based Compensation - Summary of Non-vested Time-Based Restricted Stock Units Outstanding (Details) - Time Based Restricted Stock Units | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares, Granted | shares | 7,839 |
Number of Shares, Vested | shares | (225) |
Number of Shares, Forfeited | shares | (837) |
Number of Shares, Non-vested at end of year | shares | 6,777 |
Weighted Average Grant Value, Granted | $ / shares | $ 76.56 |
Weighted Average Grant Value, Vested | $ / shares | 76.56 |
Weighted Average Grant Value, Forfeited | $ / shares | 76.56 |
Weighted Average Grant Value, Non-vested at end of year | $ / shares | $ 76.56 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Amounts Recognized in Consolidated Income Statement for Restricted Stock Awards, Time Based Restricted Stock Units and Performance Based Restricted Stock Units (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation [Abstract] | |||
Share-based compensation expense | $ 2,592 | $ 1,045 | $ 997 |
Related income tax benefit | $ 729 | $ 427 | $ 407 |
Financial Instruments with Of_3
Financial Instruments with Off-Balance-Sheet Risk - Summary of Off-Balance-Sheet Financial Instruments with Contractual Amounts Include Present Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Standby Letters of Credit | ||
Financial instruments whose contractual amount represents credit risk: | ||
Financial instruments with off-balance-sheet risk | $ 8,752 | $ 8,322 |
Unused Portion of Existing Lines of Credit | ||
Financial instruments whose contractual amount represents credit risk: | ||
Financial instruments with off-balance-sheet risk | 368,410 | 304,298 |
Origination of New Loans | ||
Financial instruments whose contractual amount represents credit risk: | ||
Financial instruments with off-balance-sheet risk | $ 24,505 | 45,061 |
Commitments to Sell Residential Mortgage Loans | ||
Financial instruments whose notional amount exceeds the amount of credit risk: | ||
Financial instrument notional amount exceeds credit risk | $ 1,490 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies [Line Items] | |||
Description of operating lease expiration terms | operating leases and their terms expire between 2019 and 2030 and, in some instances, contain options to renew for periods up to 25 years. | ||
Operating leases, rental expense, net | $ 4,700,000 | $ 4,700,000 | $ 4,600,000 |
Operating leases, minimum annual rental payments, receivable under sublease | 32,000 | ||
Operating leases, rental income under sublease | $ 62,000 | $ 64,000 | $ 76,000 |
Operating leases, minimum annual rental payments receivable period under sublease | through July 31, 2019 | ||
Maximum | |||
Commitments and Contingencies [Line Items] | |||
Renewal option period for operating leases | 25 years |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Total Minimum Rentals Due in Future Periods under Lease Agreements (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2019 | $ 4,448 |
2020 | 4,661 |
2021 | 4,662 |
2022 | 4,553 |
2023 | 4,455 |
Thereafter | 17,128 |
Total minimum lease payments | $ 39,907 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) $ in Billions | Dec. 31, 2018 | Nov. 30, 2018 | Dec. 31, 2017 | Jan. 01, 2015 | Dec. 31, 2009 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||
Tier 1 risk based capital to risk weighted assets | 12.10% | 12.50% | |||
Capital to risk weighted assets | 13.20% | 13.70% | |||
Tier 1 capital to average assets of leverage ratio | 8.50% | 8.10% | |||
Excess tier one capital deduction category one percentage | 10.00% | ||||
Excess tier one capital deduction percentage | 15.00% | ||||
Minimum | |||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||
Common equity tier 1 risk based capital to risk weighted assets | 7.00% | 4.50% | |||
Tier 1 risk based capital to risk weighted assets | 8.50% | 6.00% | |||
Capital to risk weighted assets | 10.50% | 8.00% | |||
Tier 1 capital to average assets of leverage ratio | 4.00% | ||||
Capital conservation buffer rate | 2.50% | ||||
Minimum | U.S. Government and Agency Securities | Standardized Approach | |||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||
Tier 1 risk based capital to risk weighted assets | 0.00% | ||||
Maximum | |||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||
Total consolidated assets | $ 10 | $ 15 | |||
Maximum | U.S. Government and Agency Securities | Standardized Approach | |||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||
Tier 1 risk based capital to risk weighted assets | 1250.00% |
Shareholders' Equity - Minimum
Shareholders' Equity - Minimum Capital Requirements were Considered Well Capitalized by FRB and FDIC (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2015 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Total capital (to risk-weighted assets), Actual, Amount | $ 189,888,000 | $ 168,615,000 | |
Tier I capital (to risk-weighted assets), Actual, Amount | 173,070,000 | 153,281,000 | |
Common equity tier I capital (to risk-weighted assets), Actual, Amount | 173,070,000 | 153,281,000 | |
Tier I capital (to average assets), Actual, Amount | $ 173,070,000 | $ 153,281,000 | |
Total capital (to risk-weighted assets), Actual, Ratio | 13.20% | 13.70% | |
Tier I capital (to risk-weighted assets), Actual, Ratio | 12.10% | 12.50% | |
Common equity tier I capital (to risk-weighted assets), Actual, Ratio | 12.10% | 12.50% | |
Tier I capital (to average assets), Actual, Ratio | 8.50% | 8.10% | |
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy, Amount | $ 114,666,000 | $ 98,136,000 | |
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy, Amount | 86,000,000 | 73,602,000 | |
Common equity tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy, Amount | 64,500,000 | 55,202,000 | |
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy, Amount | $ 81,507,000 | $ 76,026,000 | |
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy, Ratio | 8.00% | 8.00% | |
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy, Ratio | 6.00% | 6.00% | |
Common equity tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy, Ratio | 4.50% | 4.50% | |
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy, Ratio | 4.00% | 4.00% | |
Minimum | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Total capital (to risk-weighted assets), Actual, Ratio | 10.50% | 8.00% | |
Tier I capital (to risk-weighted assets), Actual, Ratio | 8.50% | 6.00% | |
Tier I capital (to average assets), Actual, Ratio | 4.00% | ||
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Phase-In Schedule, Amount | $ 141,541,000 | $ 113,470,000 | |
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Phase-In Schedule, Amount | 112,875,000 | 88,936,000 | |
Common equity tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Phase-In Schedule, Amount | 91,375,000 | 70,535,000 | |
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Phase-In Schedule, Amount | $ 81,507,000 | $ 76,026,000 | |
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Phase-In Schedule, Ratio | 9.875% | 9.25% | |
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Phase-In Schedule, Ratio | 7.875% | 7.25% | |
Common equity tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Phase-In Schedule, Ratio | 6.375% | 5.75% | |
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Phase-In Schedule, Ratio | 4.00% | 4.00% | |
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Amount | $ 150,500,000 | $ 128,804,000 | |
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Amount | 121,833,000 | 104,270,000 | |
Common equity tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Amount | 100,333,000 | 85,869,000 | |
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Amount | $ 81,507,000 | $ 76,026,000 | |
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Ratio | 10.50% | 10.50% | |
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Ratio | 8.50% | 8.50% | |
Common equity tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Ratio | 7.00% | 7.00% | |
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Ratio | 4.00% | 4.00% | |
Cambridge Trust Company | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Total capital (to risk-weighted assets), Actual, Amount | $ 185,507,000 | $ 164,880,000 | |
Tier I capital (to risk-weighted assets), Actual, Amount | 168,689,000 | 149,546,000 | |
Common equity tier I capital (to risk-weighted assets), Actual, Amount | 168,689,000 | 149,546,000 | |
Tier I capital (to average assets), Actual, Amount | $ 168,689,000 | $ 149,546,000 | |
Total capital (to risk-weighted assets), Actual, Ratio | 12.90% | 13.40% | |
Tier I capital (to risk-weighted assets), Actual, Ratio | 11.80% | 12.20% | |
Common equity tier I capital (to risk-weighted assets), Actual, Ratio | 11.80% | 12.20% | |
Tier I capital (to average assets), Actual, Ratio | 8.30% | 7.90% | |
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy, Amount | $ 114,666,000 | $ 98,136,000 | |
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy, Amount | 86,000,000 | 73,602,000 | |
Common equity tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy, Amount | 64,500,000 | 55,202,000 | |
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy, Amount | $ 81,507,000 | $ 76,026,000 | |
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy, Ratio | 8.00% | 8.00% | |
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy, Ratio | 6.00% | 6.00% | |
Common equity tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy, Ratio | 4.50% | 4.50% | |
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy, Ratio | 4.00% | 4.00% | |
Cambridge Trust Company | Minimum | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Phase-In Schedule, Amount | $ 141,541,000 | $ 113,470,000 | |
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Phase-In Schedule, Amount | 112,875,000 | 88,936,000 | |
Common equity tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Phase-In Schedule, Amount | 91,375,000 | 70,535,000 | |
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Phase-In Schedule, Amount | $ 81,507,000 | $ 76,026,000 | |
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Phase-In Schedule, Ratio | 9.875% | 9.25% | |
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Phase-In Schedule, Ratio | 7.875% | 7.25% | |
Common equity tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Phase-In Schedule, Ratio | 6.375% | 5.75% | |
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Phase-In Schedule, Ratio | 4.00% | 4.00% | |
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Amount | $ 150,500,000 | $ 128,804,000 | |
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Amount | 121,833,000 | 104,270,000 | |
Common equity tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Amount | 100,333,000 | 85,869,000 | |
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Amount | $ 81,507,000 | $ 76,026,000 | |
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Ratio | 10.50% | 10.50% | |
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Ratio | 8.50% | 8.50% | |
Common equity tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Ratio | 7.00% | 7.00% | |
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Ratio | 4.00% | 4.00% | |
Total capital (to risk-weighted assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 143,333,000 | $ 122,670,000 | |
Tier I capital (to risk-weighted assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | 114,666,000 | 98,136,000 | |
Common equity tier I capital (to risk-weighted assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | 93,166,000 | 79,736,000 | |
Tier I capital (to average assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 101,884,000 | $ 95,033,000 | |
Total capital (to risk-weighted assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% | |
Tier I capital (to risk-weighted assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% | |
Common equity tier I capital (to risk-weighted assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% | |
Tier I capital (to average assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
Other Income - Schedule of Comp
Other Income - Schedule of Components of Other Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Income And Expenses [Abstract] | |||
Safe deposit box income | $ 342 | $ 348 | $ 366 |
Loan fee income | 358 | 473 | 229 |
Miscellaneous income | 569 | 334 | 326 |
Total other income | $ 1,269 | $ 1,155 | $ 921 |
Other Operating Expenses - Comp
Other Operating Expenses - Components of Other Operating Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Director fees | $ 724 | $ 576 | $ 513 |
Charitable donations & sponsorships | 518 | 432 | 434 |
Printing and supplies | 272 | 251 | 291 |
Travel and entertainment | 456 | 339 | 331 |
Physical security | 131 | 172 | 233 |
Postage and mailing | 201 | 229 | 241 |
Miscellaneous expense | (331) | 885 | 613 |
Total other operating expenses | 2,264 | 3,144 | 2,932 |
Membership | |||
Dues and memberships | $ 293 | $ 260 | $ 276 |
Other Comprehensive Income - Su
Other Comprehensive Income - Summary of Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Unrealized (losses)/gains on available for sale securities, before tax amount | |||
Unrealized holding (losses)/gains arising during the period, before tax amount | $ (231) | $ 187 | $ (1,224) |
Reclassification adjustment for (gains)/losses recognized in net income, before tax amount | (2) | 3 | (438) |
Derivatives, before tax amount | |||
Change in interest rate contracts, before tax amount | 1,045 | ||
Defined benefit retirement plans, before tax amount | |||
Net change in retirement liability, before tax amount | 124 | 6,545 | (738) |
Total Other Comprehensive Income/(Loss), before tax amount | 936 | 6,735 | (2,400) |
Unrealized (losses)/gains on available for sale securities, tax (expense) or benefit | |||
Unrealized holding (losses)/gains arising during the period, tax (expense) or benefit | (11) | (59) | 489 |
Reclassification adjustment for (gains)/losses recognized in net income, tax (expense) or benefit | (2) | 157 | |
Derivatives, tax (expense) or benefit | |||
Change in interest rate contracts, tax (expense) or benefit | (294) | ||
Defined benefit retirement plans, tax (expense) or benefit | |||
Net change in retirement liability, tax (expense) or benefit | (35) | (2,674) | 301 |
Total Other Comprehensive Income/(Loss), tax (expense) or benefit | (340) | (2,735) | 947 |
Unrealized (losses)/gains on available for sale securities, net-of-tax amount | |||
Unrealized holding (losses)/gains arising during the period, net-of-tax amount | (242) | 128 | (735) |
Reclassification adjustment for (gains)/losses recognized in net income, net-of-tax amount | (2) | 1 | (281) |
Derivatives, net-of-tax amount | |||
Change in interest rate contracts, net-of-tax amount | 751 | ||
Defined benefit retirement plans, net-of-tax amount | |||
Net change in retirement liability, net-of-tax amount | 89 | 3,871 | (437) |
Other comprehensive income/(loss) | $ 596 | $ 4,000 | $ (1,453) |
Other Comprehensive Income - _2
Other Comprehensive Income - Summary of Reclassifications out of Accumulated Other Comprehensive Income ("AOCI") (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Unrealized gains and losses on available for sale securities | $ 2 | $ (3) | $ 438 | ||||||||
Tax benefit or (expense) | $ (1,585) | $ (2,105) | $ (1,901) | $ (1,616) | $ (6,371) | $ (2,694) | $ (2,309) | $ (1,984) | (7,207) | (13,358) | (8,556) |
Net income | $ 5,306 | $ 6,659 | $ 6,111 | $ 5,805 | $ 964 | $ 5,010 | $ 4,514 | $ 4,328 | 23,881 | 14,816 | 16,896 |
Reclassifications out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Unrealized gains and losses on available for sale securities | 2 | (3) | 438 | ||||||||
Tax benefit or (expense) | 2 | (157) | |||||||||
Net income | $ 2 | $ (1) | $ 281 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Reconciliation Between Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | |||||||||||
Net income | $ 5,306 | $ 6,659 | $ 6,111 | $ 5,805 | $ 964 | $ 5,010 | $ 4,514 | $ 4,328 | $ 23,881 | $ 14,816 | $ 16,896 |
Less dividends and undistributed earnings allocated to participating securities | (239) | (157) | (182) | ||||||||
Net income applicable to common shareholders | $ 23,642 | $ 14,659 | $ 16,714 | ||||||||
Denominator: | |||||||||||
Weighted average number of shares outstanding, basic | 4,065,681 | 4,064,620 | 4,059,927 | 4,053,355 | 4,038,948 | 4,037,026 | 4,034,397 | 4,011,925 | 4,061,529 | 4,030,530 | 3,990,343 |
Earnings per common share – basic | $ 1.29 | $ 1.62 | $ 1.49 | $ 1.42 | $ 0.24 | $ 1.23 | $ 1.11 | $ 1.07 | $ 5.82 | $ 3.64 | $ 4.19 |
Numerator: | |||||||||||
Net income | $ 5,306 | $ 6,659 | $ 6,111 | $ 5,805 | $ 964 | $ 5,010 | $ 4,514 | $ 4,328 | $ 23,881 | $ 14,816 | $ 16,896 |
Less dividends and undistributed earnings allocated to participating securities | (239) | (157) | (181) | ||||||||
Net income applicable to common shareholders | $ 23,642 | $ 14,659 | $ 16,715 | ||||||||
Denominator: | |||||||||||
Weighted average number of shares outstanding, basic | 4,065,681 | 4,064,620 | 4,059,927 | 4,053,355 | 4,038,948 | 4,037,026 | 4,034,397 | 4,011,925 | 4,061,529 | 4,030,530 | 3,990,343 |
Dilutive effect of common stock equivalents | 37,000 | 35,000 | 39,000 | ||||||||
Weighted average diluted common shares outstanding | 4,102,546 | 4,101,378 | 4,094,489 | 4,071,975 | 4,073,707 | 4,070,332 | 4,068,360 | 4,050,791 | 4,098,633 | 4,065,754 | 4,028,944 |
Earnings per common share – diluted | $ 1.28 | $ 1.61 | $ 1.48 | $ 1.41 | $ 0.23 | $ 1.22 | $ 1.10 | $ 1.06 | $ 5.77 | $ 3.61 | $ 4.15 |
Derivative And Hedging Activite
Derivative And Hedging Activites - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Notional amount | $ 811,000 | ||
Cash flow hedges | $ 0 | ||
Fair value of derivative liability | 5,961,000 | 1,940,000 | |
Minimum | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Minimum collateral posting threshold of derivative counterparties | 260,000 | ||
Accrued Interest | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Fair value of derivative liability | 811,000 | ||
Institutional Counterparties | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Risk related exposure amount | 743,000 | 1,200,000 | |
Customer Counterparties | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Risk related exposure amount | 3,900,000 | $ 342,000 | |
Scenario Forecast | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Estimated amount will be reclassified out of AOCI in to earnings | $ 194,000 | ||
Interest Rate Floor | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Notional amount | $ 150,000,000 |
Derivative And Hedging Activi_3
Derivative And Hedging Activites - Summary of Fair Values of Derivative Instruments in the Company's Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Fair value | $ 7,780 | $ 1,859 |
Derivative Liabilities, Fair value | 5,961 | 1,940 |
Derivatives Designated as Hedging Instruments | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Fair value | 1,970 | |
Derivatives Designated as Hedging Instruments | Interest Rate Contracts | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Notional amount | 150,000 | |
Derivatives Designated as Hedging Instruments | Interest Rate Contracts | Other Assets | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Fair value | 1,970 | |
Derivatives Not Designated as Hedging Instruments | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Fair value | 5,810 | 1,859 |
Derivative Liabilities, Fair value | 5,961 | 1,940 |
Derivatives Not Designated as Hedging Instruments | Loan Related Derivative Contracts | Interest Rate Swaps with Customers | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Notional amount | 150,489 | 74,758 |
Derivatives Not Designated as Hedging Instruments | Loan Related Derivative Contracts | Interest Rate Swaps with Customers | Other Assets | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Fair value | 5,782 | 1,859 |
Derivatives Not Designated as Hedging Instruments | Loan Related Derivative Contracts | Mirror Swaps with Counterparties | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Liabilities, Notional Amount | 150,489 | 74,758 |
Derivatives Not Designated as Hedging Instruments | Loan Related Derivative Contracts | Mirror Swaps with Counterparties | Other Liabilities | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Liabilities, Fair value | 5,782 | 1,859 |
Derivatives Not Designated as Hedging Instruments | Loan Related Derivative Contracts | Risk Participation Agreements Out to Counterparties | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Notional amount | 19,000 | |
Derivatives Not Designated as Hedging Instruments | Loan Related Derivative Contracts | Risk Participation Agreements Out to Counterparties | Other Assets | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Fair value | 28 | |
Derivatives Not Designated as Hedging Instruments | Loan Related Derivative Contracts | Risk Participation Agreements with Counterparties | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Liabilities, Notional Amount | 63,825 | 38,494 |
Derivatives Not Designated as Hedging Instruments | Loan Related Derivative Contracts | Risk Participation Agreements with Counterparties | Other Liabilities | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Liabilities, Fair value | $ 179 | $ 81 |
Derivative And Hedging Activi_4
Derivative And Hedging Activites - Summary of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Details) - Cash Flow Hedging $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |
Amount of Gain or (Loss) Recognized in OCI on Derivative | $ 1,002 |
Amount of Gain or (Loss) Recognized in OCI Excluded Component | 1,002 |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income | (43) |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Excluded Component | (43) |
Interest Income | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income | (43) |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Excluded Component | (43) |
Interest Rate Contracts | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |
Amount of Gain or (Loss) Recognized in OCI on Derivative | 1,002 |
Amount of Gain or (Loss) Recognized in OCI Excluded Component | $ 1,002 |
Derivative And Hedging Activi_5
Derivative And Hedging Activites - Summary of Derivative Financial Instruments Income Statement (Details) - Interest Income (Expense) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |
Total amounts of income and expense line items presented in the income statement in which the effects of fair value or cash flow hedges are recorded | $ (43) |
Interest Rate Contracts | |
The effects of fair value and cash flow hedging: | |
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | (43) |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Excluded Component | $ (43) |
Derivative And Hedging Activi_6
Derivative And Hedging Activites - Summary of Derivative Financial Instruments Not Designated as Hedging Instruments (Details) - Derivatives Not Designated as Hedging Instruments - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Amount of Gain or (Loss) Recognized in Income on Derivative | $ 276 | $ 426 | $ 209 |
Other contracts | Other Income | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Amount of Gain or (Loss) Recognized in Income on Derivative | $ 276 | $ 426 | $ 209 |
Derivative And Hedging Activi_7
Derivative And Hedging Activites - Schedule of Financial Instruments Eligible for Offset in Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Offsetting [Abstract] | ||
Gross Amounts of Recognized, Derivative assets | $ 7,780 | $ 1,859 |
Net Amounts Recognized, Derivative Assets | 7,780 | 1,859 |
Gross Amounts Not Offset, Financial Instruments, Derivative Assets | 3,099 | 326 |
Gross Amounts Not Offset, Collateral Pledged (Received), Derivative Assets | (743) | (1,131) |
Gross Amounts Not Offset, Net amount, Derivative Assets | 3,938 | 402 |
Gross Amounts of Recognized, Derivative Liablities | 5,961 | 1,940 |
Net Amounts Recognized, Derivative Liablities | 5,961 | 1,940 |
Gross Amounts Not Offset, Financial Instruments, Derivative Liablities | 3,099 | 326 |
Gross Amounts Not Offset, Collateral Pledged (Received), Derivative Liablities | 260 | |
Gross Amounts Not Offset, Net amount, Derivative Liablities | $ 2,602 | $ 1,614 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Values and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets | ||
Securities available for sale | $ 168,163 | $ 205,017 |
Securities held to maturity | 281,310 | 233,554 |
FHLB Boston stock | 6,844 | 4,242 |
Recurring Basis | Carrying Value | ||
Financial assets | ||
Cash and cash equivalents | 18,473 | 103,591 |
Securities available for sale | 168,163 | 205,017 |
Securities held to maturity | 282,869 | 232,188 |
Loans, net | 1,543,004 | 1,335,579 |
FHLB Boston stock | 6,844 | 4,242 |
Accrued interest receivable | 5,762 | 5,128 |
Mortgage servicing rights | 666 | 793 |
Interest rate contracts | 1,970 | |
Loan level interest rate swaps | 5,782 | 1,859 |
Risk participation agreements out to counterparties | 28 | |
Financial liabilities | ||
Deposits | 1,811,410 | 1,775,400 |
Short-term borrowings | 90,000 | |
Long-term borrowings | 3,409 | 3,579 |
Loan level interest rate swaps | 5,782 | 1,859 |
Risk participation agreements in with counterparties | 179 | 81 |
Recurring Basis | Estimated Fair Value | ||
Financial assets | ||
Cash and cash equivalents | 18,473 | 103,591 |
Securities available for sale | 168,163 | 205,017 |
Securities held to maturity | 281,310 | 233,554 |
Loans, net | 1,484,905 | 1,304,719 |
FHLB Boston stock | 6,844 | 4,242 |
Accrued interest receivable | 5,762 | 5,128 |
Mortgage servicing rights | 941 | 1,049 |
Interest rate contracts | 1,970 | |
Loan level interest rate swaps | 5,782 | 1,859 |
Risk participation agreements out to counterparties | 28 | |
Financial liabilities | ||
Deposits | 1,809,051 | 1,772,838 |
Short-term borrowings | 90,000 | |
Long-term borrowings | 3,363 | 3,559 |
Loan level interest rate swaps | 5,782 | 1,859 |
Risk participation agreements in with counterparties | $ 179 | $ 81 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Certain Assets Reported at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 168,163 | $ 205,017 |
Mutual Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 599 | |
U.S. GSE Obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 74,039 | 88,791 |
Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 4,856 | 5,001 |
Recurring Basis | Mutual Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 599 | |
Recurring Basis | Level 1 | Mutual Funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 599 | |
Recurring Basis | U.S. GSE Obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 74,039 | 88,791 |
Recurring Basis | U.S. GSE Obligations | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 74,039 | 88,791 |
Recurring Basis | Mortgage Backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 89,268 | 110,626 |
Recurring Basis | Mortgage Backed Securities | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 89,268 | 110,626 |
Recurring Basis | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 4,856 | 5,001 |
Recurring Basis | Corporate Debt Securities | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 4,856 | 5,001 |
Recurring Basis | Interest Rate Swaps with Customers | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other assets | 5,782 | 1,859 |
Recurring Basis | Interest Rate Swaps with Customers | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other assets | 5,782 | 1,859 |
Recurring Basis | Risk Participation Agreements Out to Counterparties | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other assets | 28 | |
Recurring Basis | Risk Participation Agreements Out to Counterparties | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other assets | 28 | |
Recurring Basis | Interest Rate Contracts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other assets | 1,970 | |
Recurring Basis | Interest Rate Contracts | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other assets | 1,970 | |
Recurring Basis | Mirror Swaps with Counterparties | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other liabilities | 5,782 | 1,859 |
Recurring Basis | Mirror Swaps with Counterparties | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other liabilities | 5,782 | 1,859 |
Recurring Basis | Risk Participation Agreements in With Counterparties | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other liabilities | 179 | 81 |
Recurring Basis | Risk Participation Agreements in With Counterparties | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other liabilities | $ 179 | $ 81 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Assets, fair value, non-recurring basis | $ 0 | $ 0 |
Transfers between levels | $ 0 | $ 0 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest and Dividend Income | $ 18,385 | $ 17,602 | $ 16,936 | $ 16,132 | $ 15,744 | $ 15,673 | $ 15,101 | $ 14,673 | $ 69,055 | $ 61,191 | $ 57,028 |
Interest Expense | 1,975 | 1,431 | 1,082 | 979 | 970 | 1,034 | 871 | 712 | 5,467 | 3,587 | 3,355 |
Net interest and dividend income | 16,410 | 16,171 | 15,854 | 15,153 | 14,774 | 14,639 | 14,230 | 13,961 | 63,588 | 57,604 | 53,673 |
Provision for (Release of) Loan Losses | 715 | 457 | (79) | 409 | 2 | 310 | 20 | 30 | 1,502 | 362 | 132 |
Net interest and dividend income after provision for loan losses | 15,695 | 15,714 | 15,933 | 14,744 | 14,772 | 14,329 | 14,210 | 13,931 | 62,086 | 57,242 | 53,541 |
Noninterest Income | 8,038 | 8,929 | 7,844 | 8,178 | 7,575 | 7,977 | 7,345 | 7,327 | 32,989 | 30,224 | 28,661 |
Noninterest Expense | 16,842 | 15,879 | 15,765 | 15,501 | 15,012 | 14,602 | 14,732 | 14,946 | 63,987 | 59,292 | 56,750 |
Income before income taxes | 6,891 | 8,764 | 8,012 | 7,421 | 7,335 | 7,704 | 6,823 | 6,312 | 31,088 | 28,174 | 25,452 |
Income tax expense | 1,585 | 2,105 | 1,901 | 1,616 | 6,371 | 2,694 | 2,309 | 1,984 | 7,207 | 13,358 | 8,556 |
Net income | $ 5,306 | $ 6,659 | $ 6,111 | $ 5,805 | $ 964 | $ 5,010 | $ 4,514 | $ 4,328 | $ 23,881 | $ 14,816 | $ 16,896 |
Share Data: | |||||||||||
Average Shares Outstanding, Basic | 4,065,681 | 4,064,620 | 4,059,927 | 4,053,355 | 4,038,948 | 4,037,026 | 4,034,397 | 4,011,925 | 4,061,529 | 4,030,530 | 3,990,343 |
Average Shares Outstanding, Diluted | 4,102,546 | 4,101,378 | 4,094,489 | 4,071,975 | 4,073,707 | 4,070,332 | 4,068,360 | 4,050,791 | 4,098,633 | 4,065,754 | 4,028,944 |
Basic Earnings Per Share | $ 1.29 | $ 1.62 | $ 1.49 | $ 1.42 | $ 0.24 | $ 1.23 | $ 1.11 | $ 1.07 | $ 5.82 | $ 3.64 | $ 4.19 |
Diluted earnings per share | $ 1.28 | $ 1.61 | $ 1.48 | $ 1.41 | $ 0.23 | $ 1.22 | $ 1.10 | $ 1.06 | $ 5.77 | $ 3.61 | $ 4.15 |
Condensed Financial Statement_3
Condensed Financial Statements of Parent Company - Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||||
Total assets | $ 2,101,384 | $ 1,949,934 | ||
Shareholders’ Equity | ||||
Total shareholders' equity | 167,026 | 147,957 | $ 134,671 | $ 125,063 |
Cambridge Bancorp [Member] | ||||
Assets | ||||
Cash | 4,412 | 3,735 | ||
Investment in subsidiary, at equity | 162,614 | 144,222 | ||
Total assets | 167,026 | 147,957 | ||
Shareholders’ Equity | ||||
Total shareholders' equity | $ 167,026 | $ 147,957 |
Condensed Financial Statement_4
Condensed Financial Statements of Parent Company - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest expense | |||||||||||
Total interest expense | $ 1,975 | $ 1,431 | $ 1,082 | $ 979 | $ 970 | $ 1,034 | $ 871 | $ 712 | $ 5,467 | $ 3,587 | $ 3,355 |
Income tax benefit | 1,585 | 2,105 | 1,901 | 1,616 | 6,371 | 2,694 | 2,309 | 1,984 | 7,207 | 13,358 | 8,556 |
Income of parent company | 23,881 | 14,816 | 16,896 | ||||||||
Net income | $ 5,306 | $ 6,659 | $ 6,111 | $ 5,805 | $ 964 | $ 5,010 | $ 4,514 | $ 4,328 | 23,881 | 14,816 | 16,896 |
Cambridge Bancorp [Member] | |||||||||||
Interest and dividend income | |||||||||||
Dividends from subsidiary | 8,615 | 8,052 | 3,412 | ||||||||
Total income | 8,615 | 8,052 | 3,412 | ||||||||
Interest expense | |||||||||||
Other expenses | 116 | ||||||||||
Total interest expense | 116 | ||||||||||
Income before income taxes and equity in undistributed income of subsidiary | 8,499 | 8,052 | 3,412 | ||||||||
Income tax benefit | (32) | ||||||||||
Income of parent company | 8,531 | 8,052 | 3,412 | ||||||||
Equity in undistributed income of subsidiary | 15,350 | 6,764 | 13,484 | ||||||||
Net income | $ 23,881 | $ 14,816 | $ 16,896 |
Condensed Financial Statement_5
Condensed Financial Statements of Parent Company - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ 5,306 | $ 6,659 | $ 6,111 | $ 5,805 | $ 964 | $ 5,010 | $ 4,514 | $ 4,328 | $ 23,881 | $ 14,816 | $ 16,896 |
CASH FLOWS FROM BY FINANCING ACTIVITIES: | |||||||||||
Cash dividends paid on common stock | (8,041) | (7,582) | (7,428) | ||||||||
Net (decrease)/increase in cash and cash equivalents | (85,118) | 49,541 | 29,405 | ||||||||
Cash and cash equivalents at beginning of period | 103,591 | 54,050 | 103,591 | 54,050 | 24,645 | ||||||
Cash and cash equivalents at end of period | 18,473 | 103,591 | 18,473 | 103,591 | 54,050 | ||||||
Cambridge Bancorp [Member] | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | 23,881 | 14,816 | 16,896 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Undistributed income of subsidiary | (15,350) | (6,764) | (13,484) | ||||||||
Net cash provided by operating activities | 8,531 | 8,052 | 3,412 | ||||||||
CASH FLOWS FROM BY FINANCING ACTIVITIES: | |||||||||||
Proceeds from the issuance of common stock | 761 | 1,522 | 2,020 | ||||||||
Repurchase of common stock | (574) | (470) | (1,560) | ||||||||
Cash dividends paid on common stock | (8,041) | (7,582) | (7,428) | ||||||||
Net cash used in financing activities | (7,854) | (6,530) | (6,968) | ||||||||
Net (decrease)/increase in cash and cash equivalents | 677 | 1,522 | (3,556) | ||||||||
Cash and cash equivalents at beginning of period | $ 3,735 | $ 2,213 | 3,735 | 2,213 | 5,769 | ||||||
Cash and cash equivalents at end of period | $ 4,412 | $ 3,735 | $ 4,412 | $ 3,735 | $ 2,213 |