Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
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 Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 4,851,047 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-38184 | |
Entity Tax Identification Number | 042777442 | |
Entity Address, Address Line One | 1336 Massachusetts Avenue | |
Entity Address, City or Town | Cambridge | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02138 | |
City Area Code | (617) | |
Local Phone Number | 876-5500 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 38,557,000 | $ 18,473,000 |
Investment securities | ||
Available for sale, at fair value (amortized cost $153,765 and $172,290, respectively) | 153,053,000 | 168,163,000 |
Held to maturity, at amortized cost (fair value $291,993 and $281,310, respectively) | 286,350,000 | 282,869,000 |
Total investment securities | 439,403,000 | 451,032,000 |
Loans held for sale, at lower of cost or fair value | 384,000 | |
Loans | ||
Residential mortgage | 938,559,000 | 604,331,000 |
Commercial mortgage | 905,442,000 | 757,957,000 |
Home equity | 85,814,000 | 69,336,000 |
Commercial & Industrial | 134,307,000 | 93,712,000 |
Consumer | 32,428,000 | 34,436,000 |
Total loans | 2,096,550,000 | 1,559,772,000 |
Less: allowance for loan losses | (17,099,000) | (16,768,000) |
Net loans | 2,079,451,000 | 1,543,004,000 |
Federal Home Loan Bank of Boston Stock, at cost | 8,245,000 | 6,844,000 |
Bank owned life insurance | 36,996,000 | 30,933,000 |
Banking premises and equipment, net | 14,863,000 | 8,578,000 |
Deferred income taxes, net | 7,267,000 | 8,717,000 |
Accrued interest receivable | 7,485,000 | 5,762,000 |
Goodwill | 31,206,000 | 412,000 |
Merger related intangibles | 3,519,000 | |
Other assets | 73,932,000 | 27,629,000 |
Total assets | 2,741,308,000 | 2,101,384,000 |
Deposits | ||
Demand | 587,030,000 | 494,492,000 |
Interest bearing checking | 422,426,000 | 431,702,000 |
Money market | 200,935,000 | 135,585,000 |
Savings | 853,356,000 | 628,212,000 |
Certificates of deposit | 265,918,000 | 121,419,000 |
Total deposits | 2,329,665,000 | 1,811,410,000 |
Short-term borrowings | 103,000,000 | 90,000,000 |
Long-term borrowings | 3,323,000 | 3,409,000 |
Other liabilities | 68,226,000 | 29,539,000 |
Total liabilities | 2,504,214,000 | 1,934,358,000 |
Shareholders’ Equity | ||
Common stock, par value $1.00; Authorized 10,000,000 shares; Outstanding: 4,850,230 shares and 4,107,051 shares, respectively | 4,850,000 | 4,107,000 |
Additional paid-in capital | 97,844,000 | 38,271,000 |
Retained earnings | 137,036,000 | 131,135,000 |
Accumulated other comprehensive loss | (2,636,000) | (6,487,000) |
Total shareholders’ equity | 237,094,000 | 167,026,000 |
Total liabilities and shareholders’ equity | $ 2,741,308,000 | $ 2,101,384,000 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Available for sale securities, amortized cost | $ 153,765 | $ 172,290 |
Held-to-maturity securities, fair value | $ 291,993 | $ 281,310 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares, outstanding | 4,850,230 | 4,107,051 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest and dividend income | ||||
Interest on taxable loans | $ 21,355 | $ 14,132 | $ 37,639 | $ 27,510 |
Interest on tax-exempt loans | 124 | 92 | 213 | 188 |
Interest on taxable investment securities | 2,116 | 1,920 | 4,096 | 3,634 |
Interest on tax-exempt investment securities | 575 | 604 | 1,146 | 1,226 |
Dividends on FHLB of Boston stock | 81 | 58 | 157 | 109 |
Interest on overnight investments | 219 | 130 | 337 | 401 |
Total interest and dividend income | 24,470 | 16,936 | 43,588 | 33,068 |
Interest expense | ||||
Interest on deposits | 4,379 | 1,053 | 6,880 | 2,015 |
Interest on borrowed funds | 315 | 29 | 671 | 46 |
Total interest expense | 4,694 | 1,082 | 7,551 | 2,061 |
Net interest and dividend income | 19,776 | 15,854 | 36,037 | 31,007 |
Provision for (Release of) Loan Losses | 596 | (79) | 503 | 330 |
Net interest and dividend income after provision for loan losses | 19,180 | 15,933 | 35,534 | 30,677 |
Noninterest income | ||||
Bank owned life insurance income | 162 | 136 | 289 | 264 |
Gain (loss) on disposition of investment securities | 6 | 2 | (81) | 2 |
Gain on loans held for sale | 15 | 18 | 31 | 45 |
Loan related derivative income | 5 | 112 | 441 | 584 |
Other income | 316 | 353 | 643 | 757 |
Total noninterest income | 8,145 | 7,844 | 16,102 | 16,022 |
Noninterest expense | ||||
Salaries and employee benefits | 11,459 | 10,443 | 22,286 | 20,516 |
Occupancy and equipment | 2,691 | 2,219 | 5,021 | 4,446 |
Data processing | 1,534 | 1,289 | 2,880 | 2,519 |
Professional services | 760 | 829 | 1,567 | 1,716 |
Marketing | 508 | 336 | 912 | 774 |
FDIC insurance | 278 | 135 | 278 | 286 |
Merger expenses | 3,450 | 3,541 | ||
Other expenses | 833 | 514 | 1,401 | 1,009 |
Total noninterest expense | 21,513 | 15,765 | 37,886 | 31,266 |
Income before income taxes | 5,812 | 8,012 | 13,750 | 15,433 |
Income tax expense | 1,540 | 1,901 | 3,280 | 3,517 |
Net income | $ 4,272 | $ 6,111 | $ 10,470 | $ 11,916 |
Share data: | ||||
Weighted average number of shares outstanding, basic | 4,682,109 | 4,059,927 | 4,379,141 | 4,057,156 |
Weighted average number of shares outstanding, diluted | 4,715,724 | 4,094,489 | 4,412,239 | 4,087,790 |
Basic earnings per share | $ 0.91 | $ 1.49 | $ 2.37 | $ 2.91 |
Diluted earnings per share | $ 0.90 | $ 1.48 | $ 2.35 | $ 2.89 |
Wealth Management Revenue | ||||
Noninterest income | ||||
Noninterest income | $ 6,419 | $ 6,139 | $ 12,543 | $ 12,265 |
Deposit Account Fees | ||||
Noninterest income | ||||
Noninterest income | 843 | 774 | 1,581 | 1,524 |
ATM/Debit Card Income | ||||
Noninterest income | ||||
Noninterest income | $ 379 | $ 310 | $ 655 | $ 581 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 4,272 | $ 6,111 | $ 10,470 | $ 11,916 |
Unrealized gains/(losses) on available for sale securities | ||||
Unrealized holding gains/(losses) arising during period | 1,453 | (423) | 2,548 | (1,775) |
Less: reclassification adjustment for losses/(gains) included in net income | (4) | (2) | 62 | (2) |
Total unrealized gains/(losses) on securities | 1,449 | (425) | 2,610 | (1,777) |
Derivatives | ||||
Change in interest rate contracts | 1,219 | 1,189 | ||
Defined benefit retirement plans | ||||
Change in retirement liabilities | 26 | 10 | 52 | 20 |
Other comprehensive income/(loss) | 2,694 | (415) | 3,851 | (1,757) |
Comprehensive income | $ 6,966 | $ 5,696 | $ 14,321 | $ 10,159 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY' (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income |
Beginning 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 | 11,916 | 11,916 | |||
Other comprehensive income (loss) | (1,757) | (1,757) | |||
Share based compensation | 1,511 | 22 | 1,489 | ||
Dividends declared | (3,935) | (3,935) | |||
Ending balance at Jun. 30, 2018 | 155,692 | 4,104 | 37,152 | 123,276 | (8,840) |
Beginning balance at Mar. 31, 2018 | 150,873 | 4,101 | 36,065 | 119,196 | (8,489) |
Cumulative effect of accounting changes | (64) | 64 | |||
Net income | 6,111 | 6,111 | |||
Other comprehensive income (loss) | (415) | (415) | |||
Share based compensation | 1,090 | 3 | 1,087 | ||
Dividends declared | (1,967) | (1,967) | |||
Ending balance at Jun. 30, 2018 | 155,692 | 4,104 | 37,152 | 123,276 | (8,840) |
Beginning balance at Dec. 31, 2018 | 167,026 | 4,107 | 38,271 | 131,135 | (6,487) |
Net income | 10,470 | 10,470 | |||
Other comprehensive income (loss) | 3,851 | 3,851 | |||
Share based compensation | 899 | 20 | 879 | ||
Dividends declared | (4,569) | (4,569) | |||
Common stock issued for merger | 59,417 | 723 | 58,694 | ||
Ending balance at Jun. 30, 2019 | 237,094 | 4,850 | 97,844 | 137,036 | (2,636) |
Beginning balance at Mar. 31, 2019 | 172,268 | 4,124 | 38,239 | 135,235 | (5,330) |
Net income | 4,272 | 4,272 | |||
Other comprehensive income (loss) | 2,694 | 2,694 | |||
Share based compensation | 914 | 3 | 911 | ||
Dividends declared | (2,471) | (2,471) | |||
Common stock issued for merger | 59,417 | 723 | 58,694 | ||
Ending balance at Jun. 30, 2019 | $ 237,094 | $ 4,850 | $ 97,844 | $ 137,036 | $ (2,636) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Retained Earnings | ||||
Dividends declared, per share | $ 0.51 | $ 0.48 | $ 1.02 | $ 0.96 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 10,470 | $ 11,916 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 503 | 330 |
Amortization of deferred charges and fees, net | 255 | 459 |
Net (Accretion)/Amortization of merger-related intangibles | (247) | |
Depreciation and amortization | 881 | 919 |
Bank owned life insurance income | (289) | (264) |
Loss/(gain) on disposition of investment securities | 81 | (2) |
Share based compensation | 899 | 1,511 |
Change in accrued interest receivable | (595) | (151) |
Deferred income tax (benefit)/expense | 885 | 350 |
Change in other assets, net | (5,860) | (6,247) |
Change in other liabilities, net | 774 | 1,302 |
Change in loans held for sale | (384) | (566) |
Net cash provided by operating activities | 7,373 | 9,557 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Origination of loans | (273,385) | (245,108) |
Proceeds from principal payments of loans | 212,719 | 194,855 |
Proceeds from calls/maturities of securities available for sale | 13,876 | 10,770 |
Proceeds from sales of securities available for sale | 26,150 | 702 |
Proceeds from calls/maturities of securities held to maturity | 32,216 | 17,200 |
Purchase of securities held to maturity | (35,958) | (64,960) |
Proceeds from settlement of bank owned life insurance policies | 676 | |
Redemption (purchase) of FHLB of Boston stock | 65 | (271) |
Purchase of banking premises and equipment | (880) | (726) |
Net cash acquired in business combinations | 2,063 | |
Net cash (used in) provided by investing activities | (23,134) | (86,862) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Change in demand, interest bearing, money market and savings accounts | 59,049 | 35,461 |
Change in certificates of deposit | (18,090) | (22,608) |
Change in short-term borrowings | (459) | |
Repayment of long-term borrowings | (86) | (85) |
Cash dividends paid on common stock | (4,569) | (3,935) |
Net cash provided by (used in) financing activities | 35,845 | 8,833 |
Net (decrease)/increase in cash and cash equivalents | 20,084 | (68,472) |
Cash and cash equivalents at beginning of period | 18,473 | 103,591 |
Cash and cash equivalents at end of period | 38,557 | 35,119 |
Cash paid during the period for: | ||
Interest | 7,719 | 2,074 |
Income taxes | 4,060 | $ 4,160 |
Significant non-cash transactions | ||
Right-of-use assets obtained in exchange for lessee operating lease liabilities | 37,550 | |
Other real estate owned | 185 | |
Common Stock issued to Optima shareholders | 59,417 | |
Fair value of assets acquired, net of cash acquired | 548,801 | |
Fair value of liabilities assumed | $ 491,447 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. BASIS OF PRESENTATION The unaudited 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 wholly owned 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 and was 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. The unaudited consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) and disclosures necessary to present fairly the Company’s financial position, as of June 30, 2019 and December 31, 2018, respectively, and the results of operations and cash flows for the interim periods presented in accordance with U.S. generally accepted accounting principles (“GAAP”). Interim results are not necessarily reflective of the results of the entire year. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission. |
Use of Estimates
Use of Estimates | 6 Months Ended |
Jun. 30, 2019 | |
Use Of Estimates [Abstract] | |
Use of Estimates | 2. 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. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 3. Subsequent Events Management has reviewed events occurring through August 8, 2019, the date the unaudited consolidated financial statements were available to be issued, and determined that no other subsequent events occurred requiring adjustment to or disclosure in these financial statements. |
Mergers
Mergers | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Mergers | 4. Mergers Optima Bank & Trust Company The Company completed its merger with Optima Bank & Trust Company (“Optima”) on April 17, 2019. Under the terms of the Agreement and Plan of Merger (the “Merger Agreement”), each outstanding share of Optima common stock was converted into $32.00 in cash or 0.3468 shares of the Company’s common stock, with the transaction structured as 95 percent common stock and 5 percent cash. As a result of the merger, former Optima shareholders received an aggregate of approximately 722,746 shares of the Company’s common stock and an aggregate of approximately $3.5 million in cash. The total consideration paid amounted to $64.3 million. The Company accounted for the merger using the acquisition method pursuant to the Business Combinations Topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). Accordingly, the Company recorded merger expenses during the three months and six months ended June 30, 2019 of approximately $3.5 million. Additionally, the acquisition method requires the acquirer to recognize the assets acquired and the liabilities assumed at their fair values as of the acquisition date. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed as of the date of the acquisition: Net Assets Acquired at Fair Value (dollars in thousands) Assets Cash and cash equivalents $ 6,902 Investments 23,298 Loans 475,406 Premises and equipment 6,286 Goodwill 30,794 Core deposit and other intangibles 3,609 Other assets 9,408 Total assets acquired 555,703 Liabilities Deposits 477,189 Borrowings 13,459 Other liabilities 799 Total liabilities assumed 491,447 Purchase price $ 64,256 Fair value adjustments to assets acquired and liabilities assumed are generally amortized using either an effective yield or straight-line basis over periods consistent with the average life, useful life, and/or contractual term of the related assets and liabilities. Fair values of the major categories of assets acquired and liabilities assumed were determined as follows: Cash and Cash Equivalents The fair values of cash and cash equivalents approximate the respective carrying amounts because the instruments are payable on demand or have short-term maturities. Investments The fair values of securities were based on quoted market prices for identical securities received from an independent, nationally-recognized, third-party pricing service. Prices provided by the independent pricing service were based on recent trading activity and other observable information including, but not limited to, market interest rate curves, referenced credit spreads, and estimated prepayment rates where applicable. Loans The loans acquired were recorded at fair value without a carryover of the allowance for loan losses. Fair value of the loans portfolio is determined using market participant assumptions in estimating the amount and timing of both principal and interest cash flows expected to be collected, as adjusted for an estimate of future credit losses and prepayments, and then applying a market-based discount rate to those cash flows. The overall discount on the loans acquired in this transaction was due to anticipated credit loss, as well as considerations for liquidity and market interest rates. Premises and Equipment The fair value of the premises, including buildings and improvements, was determined based upon appraisals by licensed real estate appraisers. The appraisals were based upon the best and highest use of the property with final values determined based upon an analysis of the cost, sales comparison, and income capitalization approaches for each property appraised. Core Deposit Intangible The fair value of the core deposit intangible is derived by comparing the interest rate and servicing costs that the financial institution pays on the core deposit liability versus the current market rate for alternative sources of financing, while factoring in estimates over the remaining life and attrition rate of the deposit accounts. The intangible asset represents the stable and relatively low cost source of funds that the deposits and accompanying relationships provide the Company, when compared to alternative funding sources. Deposits The fair value of acquired savings and transaction deposit accounts was assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand. The fair value of time deposits were determined based on the present value of the contractual cash flows over the remaining period to maturity using a market interest rate. Borrowings Federal Home Loan Bank (“FHLB”) borrowings were recorded at their carrying value which approximates fair value. Selected Pro Forma Results The following summarizes the unaudited pro forma results of operations as if the Company merged with Optima on January 1, 2019 (2018 amounts represent combined results for the Company and Optima). The selected pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the financial results of the combined companies had the acquisition actually been completed at the beginning of the periods presented, nor does it indicate future results for any other interim or full-year Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (dollars in thousands) Net interest and dividend income after provision for loan losses $ 19,780 $ 19,364 $ 39,776 $ 37,737 Net Income 8,075 6,646 14,988 13,207 Excluded from the pro forma results of operations for the three months and six months ended June 30, 2019 are merger-related costs of approximately $3.5 million recognized by the Company. These costs were primarily made up of contract terminations arising due to the change in control, the acceleration of certain compensation and benefit costs, and other merger expenses. |
Recently Issued and Adopted Acc
Recently Issued and Adopted Accounting Guidance | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recently Issued and Adopted Accounting Guidance | 5. Recently Issued and Adopted Accounting Guidance 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 Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities 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 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 was effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. 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. See note 18 – DERIVATIVE AND HEDGING ACTIVITIES. 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. 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 | 6 Months Ended |
Jun. 30, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 6. Cash and cash equivalents At June 30, 2019 and December 31, 2018, cash and cash equivalents totaled $38.6 million and $18.5 million, respectively. Of this amount, $26.9 million and $12.7 million, respectively, were maintained to satisfy the reserve requirements of the Federal Reserve Bank of Boston (“FRB Boston”). Additionally, at June 30, 2019 and December 31, 2018, 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 | 6 Months Ended |
Jun. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | 7. Investment Securities Investment securities have been classified in the unaudited consolidated balance sheets according to management’s intent. The carrying amounts of securities and their approximate fair values were as follows: June 30, 2019 December 31, 2018 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 $ 50,000 $ 1 $ (186 ) $ 49,815 $ 75,004 $ — $ (965 ) $ 74,039 Mortgage-backed securities 103,765 358 (885 ) 103,238 92,271 118 (3,121 ) 89,268 Corporate debt securities — — — — 5,015 — (159 ) 4,856 Total available for sale securities $ 153,765 $ 359 $ (1,071 ) $ 153,053 $ 172,290 $ 118 $ (4,245 ) $ 168,163 Held to maturity securities U.S. GSE obligations $ 22,572 $ 3 $ (17 ) $ 22,558 $ 32,571 $ — $ (238 ) $ 32,333 Mortgage-backed securities 181,776 2,790 (138 ) 184,428 168,118 134 (2,290 ) 165,962 Corporate debt securities 6,977 92 — 7,069 6,972 — (107 ) 6,865 Municipal securities 75,025 2,913 — 77,938 75,208 1,297 (355 ) 76,150 Total held to maturity securities $ 286,350 $ 5,798 $ (155 ) $ 291,993 $ 282,869 $ 1,431 $ (2,990 ) $ 281,310 Total $ 440,115 $ 6,157 $ (1,226 ) $ 445,046 $ 455,159 $ 1,549 $ (7,235 ) $ 449,473 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 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: June 30, 2019 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 $ — $ — $ 44,814 $ (186 ) $ 44,814 $ (186 ) Mortgage-backed securities 6,844 (41 ) 71,244 (844 ) 78,088 (885 ) Corporate debt securities — — — — — — Total available for sale securities $ 6,844 $ (41 ) $ 116,058 $ (1,030 ) $ 122,902 $ (1,071 ) Held to maturity securities U.S. GSE obligations $ — $ — $ 14,980 $ (17 ) $ 14,980 $ (17 ) Mortgage-backed securities — — 47,096 (138 ) 47,096 (138 ) Corporate debt securities — — — — — — Municipal securities — — 312 — 312 — Total held to maturity securities $ — $ — $ 62,388 $ (155 ) $ 62,388 $ (155 ) Total temporarily impaired securities $ 6,844 $ (41 ) $ 178,446 $ (1,185 ) $ 185,290 $ (1,226 ) 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 ) Management evaluates securities 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 June 30, 2019, 68 debt securities had gross unrealized losses, with an aggregate depreciation of 0.66% from the Company’s amortized cost basis. The largest unrealized loss percentage and largest unrealized loss dollar amount of any single security was 2.43%, or $79,000, of its amortized cost. 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. 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 June 30, 2019 and December 31, 2018. The amortized cost and fair value of debt securities, aggregated by the earlier of guaranteed call date or 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 June 30, 2019 (dollars in thousands) Available for sale securities U.S. GSE obligations $ 10,000 $ 9,971 $ 40,000 $ 39,844 $ — $ — $ — $ — $ 50,000 $ 49,815 Mortgage-backed securities — — 58 59 29,462 29,176 74,245 74,003 103,765 103,238 Corporate debt securities — — — — — — — — — — Total available for sale securities $ 10,000 $ 9,971 $ 40,058 $ 39,903 $ 29,462 $ 29,176 $ 74,245 $ 74,003 $ 153,765 $ 153,053 Held to maturity securities U.S. GSE obligations $ 4,997 $ 4,982 $ 17,575 $ 17,576 $ — $ — $ — $ — $ 22,572 $ 22,558 Mortgage-backed securities 8 8 — — 52,063 53,202 129,705 131,218 181,776 184,428 Corporate debt securities — — 6,977 7,069 — — — — 6,977 7,069 Municipal securities 2,424 2,445 12,746 12,970 43,956 46,051 15,899 16,472 75,025 77,938 Total held to maturity securities $ 7,429 $ 7,435 $ 37,298 $ 37,615 $ 96,019 $ 99,253 $ 145,604 $ 147,690 $ 286,350 $ 291,993 Total $ 17,429 $ 17,406 $ 77,356 $ 77,518 $ 125,481 $ 128,429 $ 219,849 $ 221,693 $ 440,115 $ 445,046 The following table sets forth information regarding sales of investment securities and the resulting gains (losses) from such sales: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (dollars in thousands) Amortized cost of securities sold $ 10,231 $ 700 $ 26,231 $ 700 Gain/(loss) realized on securities sold 6 2 (81 ) 2 Net proceeds from securities sold $ 10,237 $ 702 $ 26,150 $ 702 |
Loans and the Allowance for Loa
Loans and the Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Loans and the Allowance for Loan Losses | 8. LOANS AND THE ALLOWANCE FOR LOAN LOSSES The Company’s lending activities are conducted primarily in Eastern Massachusetts and New Hampshire. 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: June 30, 2019 December 31, 2018 (dollars in thousands) Residential mortgage Mortgages - fixed rate $ 409,706 $ 293,267 Mortgages - adjustable rate 498,694 309,656 Construction 28,437 — Deferred costs net of unearned fees 1,722 1,408 Total residential mortgages 938,559 604,331 Commercial mortgage Mortgages - nonowner occupied 788,982 654,394 Mortgages - owner occupied 64,520 59,335 Construction 51,816 44,146 Deferred costs net of unearned fees 124 82 Total commercial mortgages 905,442 757,957 Home equity Home equity - lines of credit 79,814 63,421 Home equity - term loans 5,763 5,665 Deferred costs net of unearned fees 237 250 Total home equity 85,814 69,336 Commercial & industrial Commercial & industrial 134,338 93,728 Deferred costs (fees) net of unearned fees (31 ) (16 ) Total commercial & industrial 134,307 93,712 Consumer Secured 31,380 33,252 Unsecured 1,035 1,171 Deferred costs net of unearned fees 13 13 Total consumer 32,428 34,436 Total loans $ 2,096,550 $ 1,559,772 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 June 30, 2019 and December 31, 2018, total loans outstanding to such directors and officers were $36,000 and $488,000, respectively. During the six months ended June 30, 2019, $67,000 of additions and $519,000 of repayments and other adjustments were made to these loans. There were $139,000 of additions and $167,000 of repayments during the year ended December 31, 2018. At June 30, 2019 and December 31, 2018, 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: June 30, 2019 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Total (dollars in thousands) Non-performing loans: Non-accrual loans $ 507 $ 135 $ 12 $ 298 $ — $ 952 Loans past due >90 days, but still accruing — — — — — — Troubled debt restructurings 105 — — — — 105 Total $ 612 $ 135 $ 12 $ 298 $ — $ 1,057 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 There were no 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 three and six months ended June 30, 2019. At June 30, 2019, two loans were determined to be TDRs with a total carrying value of $105,000. One TDR loan was paid off during the first quarter of 2019. There were no TDR defaults during the three and six months ended June 30, 2019. 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. There were no specific allowances for TDRs at June 30, 2019 or December 31, 2018. As of June 30, 2019 and December 31, 2018, 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: June 30, 2019 Residential Mortgages Home Equity Consumer (dollars in thousands) Credit risk profile based on payment activity: Performing $ 937,947 $ 85,802 $ 32,428 Non-performing 612 12 — Total $ 938,559 $ 85,814 $ 32,428 Commercial Mortgages Commercial & Industrial Credit risk profile by internally assigned grade: 1-6 (Pass) $ 895,336 $ 125,763 7 (Special Mention) 9,571 3,487 8 (Substandard) 535 5,057 9 (Doubtful) — — 10 (Loss) — — Total $ 905,442 $ 134,307 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 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 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: June 30, 2019 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 $ 2,093 $ 721 $ 385 $ 3,199 $ 935,360 $ 938,559 Commercial Mortgages 1,943 — — 1,943 903,499 905,442 Home Equity — 12 — 12 85,802 85,814 Commercial & Industrial 425 — 159 584 133,723 134,307 Consumer loans 2 4 — 6 32,422 32,428 Total $ 4,463 $ 737 $ 544 $ 5,744 $ 2,090,806 $ 2,096,550 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 There were no significant commitments to lend additional funds to borrowers whose loans were on nonaccrual status at June 30, 2019 and December 31, 2018. Foreclosure Proceedings Other Real Estate Owned (“OREO”) During the quarter ended June 30, 2019, the Company recorded other real estate owned assets of $185,000. OREO consists of real estate properties, which have primarily served as collateral to secure loans that are controlled or owned by the Bank. These properties are recorded at fair value less estimated costs to sell at the date control is established, resulting in a new cost basis. The amount by which the recorded investment in the loan exceeds the fair value (net of estimated costs to sell) of the foreclosed asset is charged to the allowance for loan losses. Subsequent declines in the fair value of the foreclosed asset below the new cost basis are recorded through the use of a valuation allowance. Subsequent increases in the fair value are recorded as reductions in the valuation allowance, but not below zero. All costs incurred thereafter in maintaining the property are generally charged to noninterest expense. In Process of Foreclosure As of June 30, 2019, there were no loans in process of foreclosure. As of December 31, 2018, one loan secured by one- to four-family residential property with a carrying value of $351,000 was in process of foreclosure. 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 tables present information pertaining to impaired loans: For the Three Months Ended June 30, 2019 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 616 620 778 — 1 Home equity 96 97 133 — — Total 712 717 911 — 1 With required reserve recorded: Commercial and industrial — — — — — Commercial mortgage — — — — — Residential mortgage — — — — — Home equity — — — — — Total — — — — — Total: Commercial and industrial — — — — — Commercial mortgage — — — — — Residential mortgage 616 620 778 — 1 Home equity 96 97 133 — — Total $ 712 $ 717 $ 911 $ — $ 1 For the Six Months Ended June 30, 2019 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 616 625 778 — 2 Home equity 96 97 133 — 1 Total 712 722 911 — 3 With required reserve recorded: Commercial and industrial — — — — — Commercial mortgage — — — — — Residential mortgage — — — — — Home equity — — — — — Total — — — — — Total: Commercial and industrial — — — — — Commercial mortgage — — — — — Residential mortgage 616 625 778 — 2 Home equity 96 97 133 — 1 Total $ 712 $ 722 $ 911 $ — $ 3 For the Three Months Ended June 30, 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 $ 17 $ 20 $ 17 $ — $ — Commercial mortgage 213 213 227 — — Residential mortgage 845 848 1,051 — — Home equity 66 67 98 — — Total 1,141 1,148 1,393 — — With required reserve recorded: Commercial and industrial — — — — — Commercial mortgage — — — — — Residential mortgage — — — — — Home equity — — — — — Total — — — — — Total: Commercial and industrial 17 20 17 — — Commercial mortgage 213 213 227 — — Residential mortgage 845 848 1,051 — — Home equity 66 67 98 — — Total $ 1,141 $ 1,148 $ 1,393 $ — $ — For the Six Months Ended June 30, 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 $ 17 $ 22 $ 17 $ — $ 1 Commercial mortgage 213 213 227 — — Residential mortgage 845 851 1,051 — — Home equity 66 68 98 — — Total 1,141 1,154 1,393 — 1 With required reserve recorded: Commercial and industrial — — — — — Commercial mortgage — — — — — Residential mortgage — — — — — Home equity — — — — — Total — — — — — Total: Commercial and industrial 17 22 17 — 1 Commercial mortgage 213 213 227 — — Residential mortgage 845 851 1,051 — — Home equity 66 68 98 — — Total $ 1,141 $ 1,154 $ 1,393 $ — $ 1 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 category June 30, 2019: For the Three Months Ended June 30, 2019 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Impaired Total (dollars in thousands) Allowance for loan losses: Balance at March 31, 2019 $ 5,256 $ 9,369 $ 534 $ 1,245 $ 248 $ — $ 16,652 Charge-offs — (55 ) — (100 ) (9 ) — (164 ) Recoveries — — — 12 4 — 16 Provision for (Release of) 207 115 (3 ) 288 (12 ) — 595 Balance at June 30, 2019 $ 5,463 $ 9,429 $ 531 $ 1,445 $ 231 $ — $ 17,099 For the Six Months Ended June 30, 2019 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Impaired Total (dollars in thousands) Allowance for loan losses: Balance at December 31, 2018 $ 4,946 $ 9,626 $ 517 $ 1,415 $ 264 $ — $ 16,768 Charge-offs — (55 ) — (130 ) (20 ) — (205 ) Recoveries — — — 25 8 — 33 Provision for (Release of) 517 (142 ) 14 135 (21 ) — 503 Balance at June 30, 2019 $ 5,463 $ 9,429 $ 531 $ 1,445 $ 231 $ — $ 17,099 For the Three Months Ended June 30, 2018 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Impaired Total (dollars in thousands) Allowance for loan losses: Balance at March 31, 2018 $ 4,692 $ 8,937 $ 570 $ 1,145 $ 298 $ 90 $ 15,732 Charge-offs — — — (6 ) (17 ) — (23 ) Recoveries — — — 12 3 — 15 Provision for (Release of) 187 (263 ) 31 44 12 (90 ) (79 ) Balance at June 30, 2018 $ 4,879 $ 8,674 $ 601 $ 1,195 $ 296 $ — $ 15,645 For the Six Months Ended June 30, 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 — — — (11 ) (21 ) — (32 ) Recoveries — — — 22 5 — 27 Provision for (Release of) (168 ) 385 (29 ) 238 (3 ) (93 ) 330 Balance at June 30, 2018 $ 4,879 $ 8,674 $ 601 $ 1,195 $ 296 $ — $ 15,645 The following tables contain period-end balances of the allowance for loan losses and related loans receivable disaggregated by impairment method: June 30, 2019 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 5,463 9,429 531 1,445 231 17,099 Total $ 5,463 $ 9,429 $ 531 $ 1,445 $ 231 $ 17,099 Loans receivable Individually evaluated for impairment $ 616 $ — $ 96 $ — $ — $ 712 Collectively evaluated for impairment 937,943 905,442 85,718 134,307 32,428 2,095,838 Total $ 938,559 $ 905,442 $ 85,814 $ 134,307 $ 32,428 $ 2,096,550 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 4,946 9,626 517 1,415 264 16,768 Total $ 4,946 $ 9,626 $ 517 $ 1,415 $ 264 $ 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 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 9. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill. As of June 30, 2019 and December 31, 2018, the carrying value of goodwill totaled $31.2 million and $412,000, respectively. The Company recorded additional goodwill of $30.8 million related to the Optima merger during the second quarter of 2019. Goodwill is tested for impairment, based on its fair value, at least annually. As of June 30, 2019 and December 31, 2018, no goodwill impairment has been recognized. Core deposit intangibles . During the second quarter of 2019, the Company recorded an asset for core deposit intangibles (“CDI”) of $3.6 million related to the Optima merger. Amortization of CDI assets totaled $90,000 for the three and six months ended June 30, 2019. As of June 30, 2019, the carrying value of CDI assets totaled $3.5 million. The weighted-average amortization period for CDI was approximately ten years at June 30, 2019. 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. As of June 30, 2019, loans held for sale totaled $384,000. The Company did not have any loans held for sale at and December 31, 2018. 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 period ended June 30, 2019 and the year ended December 31, 2018 were $867,000 and $1.6 million, respectively. Total gain on loans held for sale were $15,000 and $18,000, for the three months ended June 30, 2019 and June 30, 2018, respectively. Total gain on loans held for sale were $31,000 and $45,000, for the six months ended June 30, 2019 and June 30, 2018, 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, 2017 $ 823 $ (30 ) $ 793 Mortgage servicing rights capitalized 5 — 5 Amortization charged against servicing income (70 ) — (70 ) Change in impairment reserve (30 ) 30 — Balance at June 30, 2018 $ 728 $ — $ 728 Balance at December 31, 2018 $ 666 $ — $ 666 Mortgage servicing rights acquired as a result of the merger 334 — 334 Mortgage servicing rights capitalized 7 — 7 Amortization charged against servicing income (106 ) — (106 ) Change in impairment reserve — (10 ) (10 ) Balance at June 30, 2019 $ 901 $ (10 ) $ 891 The fair value of our mortgage servicing rights (“MSR”) portfolio was $1.1 million and $1.0 million as of June 30, 2019 and June 30, 2018, respectively. 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 the mortgage servicing rights portfolio was 6.0 years and 7.5 years at June 30, 2019 and December 31, 2018, respectively. The estimated aggregate future amortization expense for mortgage servicing rights for each of the next five years and thereafter is as follows: Future Amortization Expense (dollars in thousands) Remainder of 2019 $ 74 2020 133 2021 113 2022 96 2023 81 Thereafter 404 Total $ 901 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The effective tax rate was 26.5% and 23.9% for the three and six months ended June 30, 2019, respectively, as compared to 23.7% and 22.8% for the three and six months ended June 30, 2018, respectively. Net deferred tax assets totaled $7.3 million at June 30, 2019 and $8.7 million at December 31, 2018. The Company recorded no valuation allowance for deferred tax assets at June 30, 2019 or December 31, 2018. The components of income tax expense were as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (dollars in thousands) Current Federal $ 1,305 $ 1,642 $ 1,676 $ 2,235 State 552 679 719 932 Total current expense 1,857 2,321 2,395 3,167 Deferred Federal (217 ) (286 ) 601 238 State (100 ) (134 ) 284 112 Total deferred (317 ) (420 ) 885 350 Total income tax expense $ 1,540 $ 1,901 $ 3,280 $ 3,517 |
Pension and Retirement Plans
Pension and Retirement Plans | 6 Months Ended |
Jun. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension and Retirement Plans | 11. Pension and Retirement Plans The components of net periodic benefit cost (credit) were as follows: Three Months Ended June 30, Pension Plan Supplemental Retirement Plan Retirement Healthcare Plan 2019 2018 2019 2018 2019 2018 (dollars in thousands) Net periodic benefit cost Service cost $ — $ — $ 75 $ 88 $ 5 $ 5 Interest cost 414 392 85 77 6 6 Expected return on assets (651 ) (722 ) — — — — Amortization of prior service cost (credit) (1 ) (1 ) — — — — Amortization of net actuarial loss 77 37 — 1 (1 ) (5 ) Net periodic benefit cost (credit) $ (161 ) $ (294 ) $ 160 $ 166 $ 10 $ 6 Six Months Ended June 30, Pension Plan Supplemental Retirement Plan Retirement Healthcare Plan 2019 2018 2019 2018 2019 2018 (dollars in thousands) Net periodic benefit cost Service cost $ — $ — 143 $ 177 10 $ 11 Interest cost 840 778 175 154 12 11 Expected return on assets (1,360 ) (1,445 ) — — — — Amortization of prior service (credit) (2 ) (2 ) — — — — Amortization of net actuarial loss 77 53 — 2 (2 ) — Net periodic benefit cost (credit) $ (445 ) $ (616 ) $ 318 $ 333 $ 20 $ 22 The Company made no contributions to the qualified defined benefit pension plan during the three and six months ended June 30, 2019. We do not expect to make any contributions to the qualified defined benefit plan during the remainder of 2019. 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 in the ESOP on January 1 or July 1 following the completion of 12 months of service consisting of at least 1,000 hours and upon the attainment of age 21. 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 PSP and ESOP for the three months ended June 30, 2019 and June 30, 2018 amounted to approximately $552,000 and $584,000, respectively. Total expenses related to the PSP and ESOP for the six months ended June 30, 2019 . Defined Contribution SERP Plan For executives participating in the Defined Contribution SERP Plan (“DC SERP”), the Company made a discretionary contribution of 10% of each executive’s base salary and bonus to his or her account. Total expenses related to the DC SERP for the three months ended June 30, 2019 and June 30, 2018 amounted to approximately $43,000 and $75,000, respectively. Total expenses related to the DC SERP for the six months ended June 30, 2019 and June 30, 2018 amounted to approximately $86,000 and $126,000, respectively. |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Share Based Compensation [Abstract] | |
Stock Based Compensation | 12. STOCK BASED COMPENSATION Time Vested Restricted Stock Awards (“RSAs”) and Time Vested Restricted Stock Units (“RSUs”) During the three months ended June 30, 2019, the Company issued the following RSAs from the 2017 Equity and Cash Incentive Plan. T he fair value of RSAs is based upon the Company’s common stock closing share price on the date of the grant. The holders of RSAs participate fully in the rewards of stock ownership of the Company, including voting and dividend rights. There were no RSUs issued during the three months ended Weighted- Average Shares Granted Fair Value at Grant Date Type of Award 950 $ 84.66 RSAs Performance-Based Restricted Stock Units (“PRSUs”) There were no PRSUs issued during the three months ended June 30, 2019 The following table presents the pre-tax expense associated with all outstanding non-vested RSAs, RSUs, PRSUs, and the related tax benefits recognized: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (dollars in thousands) Stock based compensation expense $ 699 $ 807 $ 1,318 $ 1,347 Related tax benefits $ 197 $ 227 $ 370 $ 379 |
Financial Instruments with Off-
Financial Instruments with Off-Balance-Sheet Risk | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments with Off-Balance-Sheet Risk | 13. Financial Instruments with Off-Balance-Sheet Risk To meet the financing needs of its customers, the Company 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 mortgage loans, derivatives contracts, 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 Company’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 Company 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 include the following: June 30, 2019 December 31, 2018 (dollars in thousands) Financial instruments whose contractual amount represents credit risk: Commitments to extend credit: Unused portion of existing lines of credit $ 405,900 $ 368,410 Origination of new loans 59,930 24,505 Standby letters of credit 8,439 8,752 Financial instruments whose notional amount exceeds the amount of credit risk: Commitments to sell residential mortgage loans 3,188 — |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | 14. LEASES The Company is obligated under various lease agreements covering its main office, private banking 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 30 years. The Company adopted Accounting Standards Update No. 2016-02 - Leases The following table summarizes information related to the Company’s right-of-use asset and net lease liability: June 30, 2019 Operating Leases Balance Sheet Location (dollars in thousands) Right-of-use asset $ 35,604 Other assets Lease liability $ 36,982 Other liabilities Operating lease expenses are comprised of operating lease costs and variable lease costs, net of sublease income. The pattern and measurement of expense recognition of these costs were not significantly impacted by ASU 2016-02 and subsequent ASUs issued to amend this Topic. Variable lease payments that are not dependent on an index or a rate or changes in variable payments based on an index or rate after the commencement date are excluded from the measurement of the lease liability, recognized in the period incurred and included within variable lease costs below. The Company determines whether a contract contains a lease based on whether a contract, or a part of a contract, conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The discount rate is determined as either the rate implicit in the lease or when a rate cannot be readily determined, the Company’s incremental borrowing rate. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term. The components of operating lease cost and other related information are as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2019 (dollars in thousands) Operating lease cost $ 1,321 $ 2,501 Short-term lease cost — — Variable lease cost (Cost excluded from lease payments) — — Sublease income (16 ) (32 ) Total Operating Lease Cost $ 1,305 $ 2,469 Other Information Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases $ 1,231 $ 2,308 Operating Lease - Operating Cash Flows (Liability reduction) 937 1,744 Right-of-use assets obtained in exchange for new operating lease liabilities 4,656 4,656 Weighted average lease term - operating Leases 8.56 Years 8.56 Years Weighted average discount Rate - operating leases 3.38 % 3.38 % The Company recorded additional ROU assets of $4.7 million during the second quarter of 2019 associated with leases acquired from the merger with Optima. The total minimum rentals due in future periods under these agreements in effect at June 30, 2019 and December 31, 2018 were as follows: Future Minimum June 30, 2019 Lease Payments (dollars in thousands) Remainder of 2019 5,426 2020 5,527 2021 5,428 2022 5,181 2023 4,864 Thereafter 16,380 Total minimum lease payments 42,806 Less: interest (5,824 ) Total lease liability $ 36,982 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 of the Company’s 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 $1.4 million and $1.1 million for the quarter ended June 30, 2019 and June 30, 2018, respectively. Total rental expense was $2.7 million and $2.2 million for the six months ended June 30, 2019 and June 30, 2018, respectively. Under the terms of the Company’s sole sublease agreement, the Company will receive minimum annual rental payments of approximately $32,000. This agreement expired on July 31, 2019. Total rental income was $16,000 for the quarters ended June 30, 2019 and June 30, 2018. Total rental income was $32,000 for the six months ended June 30, 2019 and June 30, 2018. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | 15. Shareholders’ Equity As of June 30, 2019 and December 31, 2018, the Company and the Bank met all applicable minimum capital requirements and were considered “well-capitalized” by both the FRB and the FDIC. Actual Minimum Capital Required For Capital Adequacy Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer (1) Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) At June 30, 2019 Cambridge Bancorp: Total capital (to risk-weighted assets) $ 222,152 11.8 % $ 150,732 8.0 % $ 197,836 10.5 % N/A N/A Tier I capital (to risk-weighted assets) 205,002 10.9 % 113,049 6.0 % 160,153 8.5 % N/A N/A Common equity tier I capital (to risk-weighted assets) 205,002 10.9 % 84,787 4.5 % 131,891 7.0 % N/A N/A Tier I capital (to average assets) 205,002 7.9 % 103,327 4.0 % 103,327 4.0 % N/A N/A Cambridge Trust Company: Total capital (to risk-weighted assets) $ 218,012 11.6 % $ 150,732 8.0 % $ 197,836 10.5 % $ 188,415 10.0 % Tier I capital (to risk-weighted assets) 200,862 10.7 % 113,049 6.0 % 160,153 8.5 % 150,732 8.0 % Common equity tier I capital (to risk-weighted assets) 200,862 10.7 % 84,787 4.5 % 131,891 7.0 % 122,470 6.5 % Tier I capital (to average assets) 200,862 7.8 % 103,327 4.0 % 103,327 4.0 % 129,158 5.0 % (1) The 2013 Capital Rules adopted by the Federal Reserve, Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation implementing Basel III were fully phased-in effective January 1, 2019. 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 % |
Other Comprehensive Income
Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Other Comprehensive Income | 16. Other Comprehensive Income The following table presents the changes in accumulated other comprehensive income (loss) during the period, by component, net of tax: Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 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 period $ 1,909 $ (456 ) $ 1,453 $ (550 ) $ 127 $ (423 ) Reclassification adjustment for (gains)/losses recognized in net income (6 ) 2 (4 ) (2 ) — (2 ) Derivatives Change in interest rate contracts 1,696 (477 ) 1,219 — — — Defined benefit retirement plans Change in retirement liability 36 (10 ) 26 15 (5 ) 10 Total Other Comprehensive (Loss)/Income $ 3,635 $ (941 ) $ 2,694 $ (537 ) $ 122 $ (415 ) Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 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 period $ 3,334 $ (786 ) $ 2,548 $ (2,228 ) $ 453 $ (1,775 ) Reclassification adjustment for (gains)/losses recognized in net income 81 (19 ) 62 (2 ) — (2 ) Derivatives Change in interest rate contracts 1,654 (465 ) 1,189 — — — Defined benefit retirement plans Change in retirement liability 72 (20 ) 52 29 (9 ) 20 Total Other Comprehensive (Loss)/Income $ 5,141 $ (1,290 ) $ 3,851 $ (2,201 ) $ 444 $ (1,757 ) Reclassifications out of Accumulated Other Comprehensive Income (“AOCI”) that have an impact on net income are presented below: Three Months Ended June 30, Details about Accumulated Other Comprehensive Income Components 2019 2018 Affected Line Item in the Statement where Net Income is Presented (dollars in thousands) Unrealized gains and losses on available for sale securities $ 6 $ 2 Gain/(loss) on disposition of investment securities Tax benefit or (expense) (2 ) — Provision for income taxes Net of tax $ 4 $ 2 Net income Six Months Ended June 30, Details about Accumulated Other Comprehensive Income Components 2019 2018 Affected Line Item in the Statement where Net Income is Presented (dollars in thousands) Unrealized gains and losses on available for sale securities $ (81 ) $ 2 Gain/(loss) on disposition of investment securities Tax benefit or (expense) 19 — Provision for income taxes Net of tax $ (62 ) $ 2 Net income |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 17. Earnings per Share The following represents a reconciliation between basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (dollars in thousands, except per share data) Earnings per common share - basic: Numerator: Net income $ 4,272 $ 6,111 $ 10,470 $ 11,916 Less dividends and undistributed earnings allocated to participating securities (35 ) (60 ) (94 ) (121 ) Net income applicable to common shareholders $ 4,237 $ 6,051 $ 10,376 $ 11,795 Denominator: Weighted average common shares outstanding 4,682 4,060 4,379 4,057 Earnings per common share - basic $ 0.91 $ 1.49 $ 2.37 $ 2.91 Earnings per common share - diluted: Numerator: Net income $ 4,272 $ 6,111 $ 10,470 $ 11,916 Less dividends and undistributed earnings allocated to participating securities (35 ) (60 ) (94 ) (121 ) Net income applicable to common shareholders $ 4,237 $ 6,051 $ 10,376 $ 11,795 Denominator: Weighted average common shares outstanding 4,682 4,060 4,379 4,057 Dilutive effect of common stock equivalents 34 34 33 31 Weighted average diluted common shares outstanding 4,716 4,094 4,412 4,088 Earnings per common share - diluted $ 0.90 $ 1.48 $ 2.35 $ 2.89 |
Derivative And Hedging Activiti
Derivative And Hedging Activities | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative And Hedging Activities | 18. Derivative 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 rate 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. 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 reclassed into interest income in the same period(s) during which the hedged transaction affects earnings. The earnings recognition of excluded components is presented in interest income. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassed to interest income as the Company receives interest payments on its 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 in 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 only enters into interest rate agreements 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 and pays a fee 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 and receives a fee 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: June 30, 2019 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 $ 3,528 $ — Other Liabilities $ — Total derivatives designated as hedging instruments $ 3,528 $ — Derivatives not designated as hedging instruments Loan related derivative contracts Interest rate swaps with customers $ 181,291 Other Assets $ 12,348 $ — Other Liabilities $ — Mirror swaps with counterparties — Other Assets — 181,291 Other Liabilities 12,348 Risk participation agreements out to counterparties 19,000 Other Assets 46 — Other Liabilities — Risk participation agreements in with counterparties — Other Assets — 78,700 Other Liabilities 459 Total derivatives not designated as hedging instruments $ 12,394 $ 12,807 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 The following table presents the effect of cash flow hedge accounting on accumulated other comprehensive income (“AOCI”) at June 30, 2019: Amount of Gain or (Loss) Recognized in OCI 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 AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Three Months Ended June 30, 2019 Three Months Ended June 30, 2019 (dollars in thousands) (dollars in thousands) Interest rate contracts $ 1,647 $ 2,080 $ (433 ) Interest Income $ (48 ) $ — $ (48 ) Total $ 1,647 $ 2,080 $ (433 ) $ (48 ) $ — $ (48 ) Amount of Gain or (Loss) Recognized in OCI 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 AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Six Months Ended June 30, 2019 Six Months Ended June 30, 2019 (dollars in thousands) (dollars in thousands) Interest rate contracts $ 1,558 $ 2,080 $ (522 ) Interest Income $ (96 ) $ — $ (96 ) Total $ 1,558 $ 2,080 $ (522 ) $ (96 ) $ — $ (96 ) Over the next 12 months, the Company estimates that an additional $28,000 will be reclassified out of AOCI 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 at June 30, 2019: Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Interest Income Interest Income (dollars in thousands) Total amount of income presented in the income statement in which the effects of fair value or cash flow hedges are recorded $ (48 ) $ (96 ) 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) reclassed from AOCI into income $ (48 ) $ (96 ) Amount of gain or (loss) reclassed from AOCI into income - Included Component — — Amount of gain or (loss) reclassed from AOCI into income - Excluded Component $ (48 ) $ (96 ) The following tables present 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 Three Months Ended June 30, Three Months Ended June 30, 2019 2018 Location of Gain or (Loss) (dollars in thousands) Other contracts Other income $ (61 ) $ 12 Total $ (61 ) $ 12 Amount of Gain or (Loss) Recognized in Income on Derivative Six Months Ended June 30, Six Months Ended June 30, 2019 2018 Location of Gain or (Loss) (dollars in thousands) Other contracts Other income $ 13 $ 40 Total $ 13 $ 40 Credit-risk-related Contingent Features 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 has agreements with its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. In addition, the Company also has agreements with certain of its derivative counterparties that contain a provision where if the Company fails to maintain its status as a well-capitalized institution, then the counterparty could terminate the derivative positions, and the Company would be required to settle its obligations under the agreements. As of June 30, 2019, 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 $8.5 million. As of June 30, 2019, the Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted collateral of $8.4 million. If the Company had breached any of these provisions at June 30, 2019, then it could have been required to settle its obligations under the agreements at their termination value of $8.5 million. 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 June 30, 2019 and December 31, 2018: Gross Amounts Not Offset Gross Amounts of Recognized Gross Amounts Offset Net Amounts Recognized Financial Instruments Collateral Pledged (Received) Net Amount June 30, 2019 (dollars in thousands) Offsetting of Derivative Assets Derivative Assets $ 15,922 $ — $ 15,922 $ 3,663 $ — $ 12,259 Offsetting of Derivative Liabilities Derivative Liabilities $ 12,807 $ — $ 12,807 $ 3,663 $ 8,428 $ 716 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 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 19. 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: June 30, 2019 December 31, 2018 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (dollars in thousands) Financial assets Cash and cash equivalents $ 38,557 $ 38,557 $ 18,473 $ 18,473 Securities available for sale 153,053 153,053 168,163 168,163 Securities held to maturity 286,350 291,993 282,869 281,310 Loans, net 2,079,451 2,036,666 1,543,004 1,484,905 Loans held for sale 384 384 — — FHLB Boston stock 8,245 8,245 6,844 6,844 Accrued interest receivable 7,485 7,485 5,762 5,762 Mortgage servicing rights 891 1,105 666 941 Interest rate contracts 3,528 3,528 1,970 1,970 Loan level interest rate swaps 12,348 12,348 5,782 5,782 Risk participation agreements out to counterparties 46 46 28 28 Financial liabilities Deposits 2,329,665 2,328,568 1,811,410 1,809,051 Short-term borrowings 103,000 103,031 90,000 90,000 Long-term borrowings 3,323 3,316 3,409 3,363 Loan level interest rate swaps 12,348 12,348 5,782 5,782 Risk participation agreements in with counterparties 459 459 179 179 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 liabilities and to determine fair value disclosures. Securities available for sale, 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. In accordance with the requirements of ASU 2016-01, the Company uses an exit price notion for its fair value disclosures as of June 30, 2019. The following tables summarize certain assets reported at fair value on a recurring basis: Fair Value as of June 30, 2019 Level 1 Level 2 Level 3 Total (dollars in thousands) Measured on a recurring basis Securities available for sale U.S. GSE obligations $ — $ 49,815 $ — $ 49,815 Mortgage-backed securities — 103,238 — 103,238 Corporate debt securities — — — — Other assets Interest rate swaps with customers — 12,348 — 12,348 Risk participation agreements out to counterparties — 46 — 46 Interest rate contracts — 3,528 — 3,528 Other liabilities Mirror swaps with counterparties — 12,348 — 12,348 Risk participation agreements in with counterparties — 459 — 459 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 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 The following table presents the carrying value of assets held at June 30, 2019, which were measured at fair value on a non-recurring basis during the three and six months ended June 30, 2019: June 30, 2019 Level 1 Level 2 Level 3 Total (dollars in thousands) Items recorded at fair value on a nonrecurring basis Assets Collateral dependent impaired loans $ — $ — $ — $ — Loans held for sale — — 384 384 Other real estate owned — — 185 185 Total $ — $ — $ 569 $ 569 During the three months ended June 30, 2019, the Company recorded total OREO of $185,000. These properties are recorded at fair value less estimated costs to sell at the date control is established. There were no assets measured at fair value on a non-recurring basis during the year ended December 31, 2018. There were no transfers between levels for the three and six months ended June 30, 2019 and the three and six months ended June 30, 2018. 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 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. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
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. |
Recently Issued and Adopted Accounting Guidance | Recently Issued and Adopted Accounting Guidance 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 Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities 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 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 was effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. 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. See note 18 – DERIVATIVE AND HEDGING ACTIVITIES. 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. 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. |
Mergers (Tables)
Mergers (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair value of the assets acquired and liabilities assumed as of the date of the acquisition: Net Assets Acquired at Fair Value (dollars in thousands) Assets Cash and cash equivalents $ 6,902 Investments 23,298 Loans 475,406 Premises and equipment 6,286 Goodwill 30,794 Core deposit and other intangibles 3,609 Other assets 9,408 Total assets acquired 555,703 Liabilities Deposits 477,189 Borrowings 13,459 Other liabilities 799 Total liabilities assumed 491,447 Purchase price $ 64,256 |
Summary of Selected Pro Forma Financial Information | The selected pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the financial results of the combined companies had the acquisition actually been completed at the beginning of the periods presented, nor does it indicate future results for any other interim or full-year Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (dollars in thousands) Net interest and dividend income after provision for loan losses $ 19,780 $ 19,364 $ 39,776 $ 37,737 Net Income 8,075 6,646 14,988 13,207 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Carrying Amounts of Securities and Their Approximate Fair Values | Investment securities have been classified in the unaudited consolidated balance sheets according to management’s intent. The carrying amounts of securities and their approximate fair values were as follows: June 30, 2019 December 31, 2018 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 $ 50,000 $ 1 $ (186 ) $ 49,815 $ 75,004 $ — $ (965 ) $ 74,039 Mortgage-backed securities 103,765 358 (885 ) 103,238 92,271 118 (3,121 ) 89,268 Corporate debt securities — — — — 5,015 — (159 ) 4,856 Total available for sale securities $ 153,765 $ 359 $ (1,071 ) $ 153,053 $ 172,290 $ 118 $ (4,245 ) $ 168,163 Held to maturity securities U.S. GSE obligations $ 22,572 $ 3 $ (17 ) $ 22,558 $ 32,571 $ — $ (238 ) $ 32,333 Mortgage-backed securities 181,776 2,790 (138 ) 184,428 168,118 134 (2,290 ) 165,962 Corporate debt securities 6,977 92 — 7,069 6,972 — (107 ) 6,865 Municipal securities 75,025 2,913 — 77,938 75,208 1,297 (355 ) 76,150 Total held to maturity securities $ 286,350 $ 5,798 $ (155 ) $ 291,993 $ 282,869 $ 1,431 $ (2,990 ) $ 281,310 Total $ 440,115 $ 6,157 $ (1,226 ) $ 445,046 $ 455,159 $ 1,549 $ (7,235 ) $ 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: June 30, 2019 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 $ — $ — $ 44,814 $ (186 ) $ 44,814 $ (186 ) Mortgage-backed securities 6,844 (41 ) 71,244 (844 ) 78,088 (885 ) Corporate debt securities — — — — — — Total available for sale securities $ 6,844 $ (41 ) $ 116,058 $ (1,030 ) $ 122,902 $ (1,071 ) Held to maturity securities U.S. GSE obligations $ — $ — $ 14,980 $ (17 ) $ 14,980 $ (17 ) Mortgage-backed securities — — 47,096 (138 ) 47,096 (138 ) Corporate debt securities — — — — — — Municipal securities — — 312 — 312 — Total held to maturity securities $ — $ — $ 62,388 $ (155 ) $ 62,388 $ (155 ) Total temporarily impaired securities $ 6,844 $ (41 ) $ 178,446 $ (1,185 ) $ 185,290 $ (1,226 ) 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 ) |
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 securities, aggregated by the earlier of guaranteed call date or 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 June 30, 2019 (dollars in thousands) Available for sale securities U.S. GSE obligations $ 10,000 $ 9,971 $ 40,000 $ 39,844 $ — $ — $ — $ — $ 50,000 $ 49,815 Mortgage-backed securities — — 58 59 29,462 29,176 74,245 74,003 103,765 103,238 Corporate debt securities — — — — — — — — — — Total available for sale securities $ 10,000 $ 9,971 $ 40,058 $ 39,903 $ 29,462 $ 29,176 $ 74,245 $ 74,003 $ 153,765 $ 153,053 Held to maturity securities U.S. GSE obligations $ 4,997 $ 4,982 $ 17,575 $ 17,576 $ — $ — $ — $ — $ 22,572 $ 22,558 Mortgage-backed securities 8 8 — — 52,063 53,202 129,705 131,218 181,776 184,428 Corporate debt securities — — 6,977 7,069 — — — — 6,977 7,069 Municipal securities 2,424 2,445 12,746 12,970 43,956 46,051 15,899 16,472 75,025 77,938 Total held to maturity securities $ 7,429 $ 7,435 $ 37,298 $ 37,615 $ 96,019 $ 99,253 $ 145,604 $ 147,690 $ 286,350 $ 291,993 Total $ 17,429 $ 17,406 $ 77,356 $ 77,518 $ 125,481 $ 128,429 $ 219,849 $ 221,693 $ 440,115 $ 445,046 |
Summary of Gains (Losses) from Sale of Investment Securities | The following table sets forth information regarding sales of investment securities and the resulting gains (losses) from such sales: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (dollars in thousands) Amortized cost of securities sold $ 10,231 $ 700 $ 26,231 $ 700 Gain/(loss) realized on securities sold 6 2 (81 ) 2 Net proceeds from securities sold $ 10,237 $ 702 $ 26,150 $ 702 |
Loans and the Allowance for L_2
Loans and the Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Loans Outstanding by Category | Loans outstanding are detailed by category as follows: June 30, 2019 December 31, 2018 (dollars in thousands) Residential mortgage Mortgages - fixed rate $ 409,706 $ 293,267 Mortgages - adjustable rate 498,694 309,656 Construction 28,437 — Deferred costs net of unearned fees 1,722 1,408 Total residential mortgages 938,559 604,331 Commercial mortgage Mortgages - nonowner occupied 788,982 654,394 Mortgages - owner occupied 64,520 59,335 Construction 51,816 44,146 Deferred costs net of unearned fees 124 82 Total commercial mortgages 905,442 757,957 Home equity Home equity - lines of credit 79,814 63,421 Home equity - term loans 5,763 5,665 Deferred costs net of unearned fees 237 250 Total home equity 85,814 69,336 Commercial & industrial Commercial & industrial 134,338 93,728 Deferred costs (fees) net of unearned fees (31 ) (16 ) Total commercial & industrial 134,307 93,712 Consumer Secured 31,380 33,252 Unsecured 1,035 1,171 Deferred costs net of unearned fees 13 13 Total consumer 32,428 34,436 Total loans $ 2,096,550 $ 1,559,772 |
Non-performing Loans Disaggregated by Loan Category | The following tables set forth information regarding non-performing loans disaggregated by loan category: June 30, 2019 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Total (dollars in thousands) Non-performing loans: Non-accrual loans $ 507 $ 135 $ 12 $ 298 $ — $ 952 Loans past due >90 days, but still accruing — — — — — — Troubled debt restructurings 105 — — — — 105 Total $ 612 $ 135 $ 12 $ 298 $ — $ 1,057 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 |
Loans Receivable Disaggregated by Credit Quality Indicator | . The following tables contain period-end balances of loans receivable disaggregated by credit quality indicator: June 30, 2019 Residential Mortgages Home Equity Consumer (dollars in thousands) Credit risk profile based on payment activity: Performing $ 937,947 $ 85,802 $ 32,428 Non-performing 612 12 — Total $ 938,559 $ 85,814 $ 32,428 Commercial Mortgages Commercial & Industrial Credit risk profile by internally assigned grade: 1-6 (Pass) $ 895,336 $ 125,763 7 (Special Mention) 9,571 3,487 8 (Substandard) 535 5,057 9 (Doubtful) — — 10 (Loss) — — Total $ 905,442 $ 134,307 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 |
Schedule of Loans Receivable Disaggregated by Past Due Status | The following tables contain period-end balances of loans receivable disaggregated by past due status: June 30, 2019 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 $ 2,093 $ 721 $ 385 $ 3,199 $ 935,360 $ 938,559 Commercial Mortgages 1,943 — — 1,943 903,499 905,442 Home Equity — 12 — 12 85,802 85,814 Commercial & Industrial 425 — 159 584 133,723 134,307 Consumer loans 2 4 — 6 32,422 32,428 Total $ 4,463 $ 737 $ 544 $ 5,744 $ 2,090,806 $ 2,096,550 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 |
Information Pertaining to Impaired Loans | The following tables present information pertaining to impaired loans: For the Three Months Ended June 30, 2019 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 616 620 778 — 1 Home equity 96 97 133 — — Total 712 717 911 — 1 With required reserve recorded: Commercial and industrial — — — — — Commercial mortgage — — — — — Residential mortgage — — — — — Home equity — — — — — Total — — — — — Total: Commercial and industrial — — — — — Commercial mortgage — — — — — Residential mortgage 616 620 778 — 1 Home equity 96 97 133 — — Total $ 712 $ 717 $ 911 $ — $ 1 For the Six Months Ended June 30, 2019 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 616 625 778 — 2 Home equity 96 97 133 — 1 Total 712 722 911 — 3 With required reserve recorded: Commercial and industrial — — — — — Commercial mortgage — — — — — Residential mortgage — — — — — Home equity — — — — — Total — — — — — Total: Commercial and industrial — — — — — Commercial mortgage — — — — — Residential mortgage 616 625 778 — 2 Home equity 96 97 133 — 1 Total $ 712 $ 722 $ 911 $ — $ 3 For the Three Months Ended June 30, 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 $ 17 $ 20 $ 17 $ — $ — Commercial mortgage 213 213 227 — — Residential mortgage 845 848 1,051 — — Home equity 66 67 98 — — Total 1,141 1,148 1,393 — — With required reserve recorded: Commercial and industrial — — — — — Commercial mortgage — — — — — Residential mortgage — — — — — Home equity — — — — — Total — — — — — Total: Commercial and industrial 17 20 17 — — Commercial mortgage 213 213 227 — — Residential mortgage 845 848 1,051 — — Home equity 66 67 98 — — Total $ 1,141 $ 1,148 $ 1,393 $ — $ — For the Six Months Ended June 30, 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 $ 17 $ 22 $ 17 $ — $ 1 Commercial mortgage 213 213 227 — — Residential mortgage 845 851 1,051 — — Home equity 66 68 98 — — Total 1,141 1,154 1,393 — 1 With required reserve recorded: Commercial and industrial — — — — — Commercial mortgage — — — — — Residential mortgage — — — — — Home equity — — — — — Total — — — — — Total: Commercial and industrial 17 22 17 — 1 Commercial mortgage 213 213 227 — — Residential mortgage 845 851 1,051 — — Home equity 66 68 98 — — Total $ 1,141 $ 1,154 $ 1,393 $ — $ 1 |
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 category June 30, 2019: For the Three Months Ended June 30, 2019 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Impaired Total (dollars in thousands) Allowance for loan losses: Balance at March 31, 2019 $ 5,256 $ 9,369 $ 534 $ 1,245 $ 248 $ — $ 16,652 Charge-offs — (55 ) — (100 ) (9 ) — (164 ) Recoveries — — — 12 4 — 16 Provision for (Release of) 207 115 (3 ) 288 (12 ) — 595 Balance at June 30, 2019 $ 5,463 $ 9,429 $ 531 $ 1,445 $ 231 $ — $ 17,099 For the Six Months Ended June 30, 2019 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Impaired Total (dollars in thousands) Allowance for loan losses: Balance at December 31, 2018 $ 4,946 $ 9,626 $ 517 $ 1,415 $ 264 $ — $ 16,768 Charge-offs — (55 ) — (130 ) (20 ) — (205 ) Recoveries — — — 25 8 — 33 Provision for (Release of) 517 (142 ) 14 135 (21 ) — 503 Balance at June 30, 2019 $ 5,463 $ 9,429 $ 531 $ 1,445 $ 231 $ — $ 17,099 For the Three Months Ended June 30, 2018 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Impaired Total (dollars in thousands) Allowance for loan losses: Balance at March 31, 2018 $ 4,692 $ 8,937 $ 570 $ 1,145 $ 298 $ 90 $ 15,732 Charge-offs — — — (6 ) (17 ) — (23 ) Recoveries — — — 12 3 — 15 Provision for (Release of) 187 (263 ) 31 44 12 (90 ) (79 ) Balance at June 30, 2018 $ 4,879 $ 8,674 $ 601 $ 1,195 $ 296 $ — $ 15,645 For the Six Months Ended June 30, 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 — — — (11 ) (21 ) — (32 ) Recoveries — — — 22 5 — 27 Provision for (Release of) (168 ) 385 (29 ) 238 (3 ) (93 ) 330 Balance at June 30, 2018 $ 4,879 $ 8,674 $ 601 $ 1,195 $ 296 $ — $ 15,645 |
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: June 30, 2019 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 5,463 9,429 531 1,445 231 17,099 Total $ 5,463 $ 9,429 $ 531 $ 1,445 $ 231 $ 17,099 Loans receivable Individually evaluated for impairment $ 616 $ — $ 96 $ — $ — $ 712 Collectively evaluated for impairment 937,943 905,442 85,718 134,307 32,428 2,095,838 Total $ 938,559 $ 905,442 $ 85,814 $ 134,307 $ 32,428 $ 2,096,550 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 4,946 9,626 517 1,415 264 16,768 Total $ 4,946 $ 9,626 $ 517 $ 1,415 $ 264 $ 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 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2017 $ 823 $ (30 ) $ 793 Mortgage servicing rights capitalized 5 — 5 Amortization charged against servicing income (70 ) — (70 ) Change in impairment reserve (30 ) 30 — Balance at June 30, 2018 $ 728 $ — $ 728 Balance at December 31, 2018 $ 666 $ — $ 666 Mortgage servicing rights acquired as a result of the merger 334 — 334 Mortgage servicing rights capitalized 7 — 7 Amortization charged against servicing income (106 ) — (106 ) Change in impairment reserve — (10 ) (10 ) Balance at June 30, 2019 $ 901 $ (10 ) $ 891 |
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: Future Amortization Expense (dollars in thousands) Remainder of 2019 $ 74 2020 133 2021 113 2022 96 2023 81 Thereafter 404 Total $ 901 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The components of income tax expense were as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (dollars in thousands) Current Federal $ 1,305 $ 1,642 $ 1,676 $ 2,235 State 552 679 719 932 Total current expense 1,857 2,321 2,395 3,167 Deferred Federal (217 ) (286 ) 601 238 State (100 ) (134 ) 284 112 Total deferred (317 ) (420 ) 885 350 Total income tax expense $ 1,540 $ 1,901 $ 3,280 $ 3,517 |
Pension and Retirement Plans (T
Pension and Retirement Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost (Credit) | The components of net periodic benefit cost (credit) were as follows: Three Months Ended June 30, Pension Plan Supplemental Retirement Plan Retirement Healthcare Plan 2019 2018 2019 2018 2019 2018 (dollars in thousands) Net periodic benefit cost Service cost $ — $ — $ 75 $ 88 $ 5 $ 5 Interest cost 414 392 85 77 6 6 Expected return on assets (651 ) (722 ) — — — — Amortization of prior service cost (credit) (1 ) (1 ) — — — — Amortization of net actuarial loss 77 37 — 1 (1 ) (5 ) Net periodic benefit cost (credit) $ (161 ) $ (294 ) $ 160 $ 166 $ 10 $ 6 Six Months Ended June 30, Pension Plan Supplemental Retirement Plan Retirement Healthcare Plan 2019 2018 2019 2018 2019 2018 (dollars in thousands) Net periodic benefit cost Service cost $ — $ — 143 $ 177 10 $ 11 Interest cost 840 778 175 154 12 11 Expected return on assets (1,360 ) (1,445 ) — — — — Amortization of prior service (credit) (2 ) (2 ) — — — — Amortization of net actuarial loss 77 53 — 2 (2 ) — Net periodic benefit cost (credit) $ (445 ) $ (616 ) $ 318 $ 333 $ 20 $ 22 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share Based Compensation [Abstract] | |
Schedule of Shares Issued and Fair Value of RSAs | During the three months ended June 30, 2019, the Company issued the following RSAs from the 2017 Equity and Cash Incentive Plan. T he fair value of RSAs is based upon the Company’s common stock closing share price on the date of the grant. The holders of RSAs participate fully in the rewards of stock ownership of the Company, including voting and dividend rights. There were no RSUs issued during the three months ended Weighted- Average Shares Granted Fair Value at Grant Date Type of Award 950 $ 84.66 RSAs |
Schedule of Pre-tax Expense Associated with All Outstanding Non-vested RSAs, RSUs, Performance Based Restricted Stock Units and Related Tax Benefits | The following table presents the pre-tax expense associated with all outstanding non-vested RSAs, RSUs, PRSUs, and the related tax benefits recognized: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (dollars in thousands) Stock based compensation expense $ 699 $ 807 $ 1,318 $ 1,347 Related tax benefits $ 197 $ 227 $ 370 $ 379 |
Financial Instruments with Of_2
Financial Instruments with Off-Balance-Sheet Risk (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 include the following: June 30, 2019 December 31, 2018 (dollars in thousands) Financial instruments whose contractual amount represents credit risk: Commitments to extend credit: Unused portion of existing lines of credit $ 405,900 $ 368,410 Origination of new loans 59,930 24,505 Standby letters of credit 8,439 8,752 Financial instruments whose notional amount exceeds the amount of credit risk: Commitments to sell residential mortgage loans 3,188 — |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Summary of Right-of-Use Asset and Net Lease Liability | The following table summarizes information related to the Company’s right-of-use asset and net lease liability: June 30, 2019 Operating Leases Balance Sheet Location (dollars in thousands) Right-of-use asset $ 35,604 Other assets Lease liability $ 36,982 Other liabilities |
Summary of Components of Operating Lease Cost and Other Related Information | The components of operating lease cost and other related information are as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2019 (dollars in thousands) Operating lease cost $ 1,321 $ 2,501 Short-term lease cost — — Variable lease cost (Cost excluded from lease payments) — — Sublease income (16 ) (32 ) Total Operating Lease Cost $ 1,305 $ 2,469 Other Information Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases $ 1,231 $ 2,308 Operating Lease - Operating Cash Flows (Liability reduction) 937 1,744 Right-of-use assets obtained in exchange for new operating lease liabilities 4,656 4,656 Weighted average lease term - operating Leases 8.56 Years 8.56 Years Weighted average discount Rate - operating leases 3.38 % 3.38 % |
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 June 30, 2019 and December 31, 2018 were as follows: Future Minimum June 30, 2019 Lease Payments (dollars in thousands) Remainder of 2019 5,426 2020 5,527 2021 5,428 2022 5,181 2023 4,864 Thereafter 16,380 Total minimum lease payments 42,806 Less: interest (5,824 ) Total lease liability $ 36,982 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) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Minimum Capital Requirements Considered Well Capitalized by FRB and FDIC | As of June 30, 2019 and December 31, 2018, the Company and the Bank met all applicable minimum capital requirements and were considered “well-capitalized” by both the FRB and the FDIC. Actual Minimum Capital Required For Capital Adequacy Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer (1) Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) At June 30, 2019 Cambridge Bancorp: Total capital (to risk-weighted assets) $ 222,152 11.8 % $ 150,732 8.0 % $ 197,836 10.5 % N/A N/A Tier I capital (to risk-weighted assets) 205,002 10.9 % 113,049 6.0 % 160,153 8.5 % N/A N/A Common equity tier I capital (to risk-weighted assets) 205,002 10.9 % 84,787 4.5 % 131,891 7.0 % N/A N/A Tier I capital (to average assets) 205,002 7.9 % 103,327 4.0 % 103,327 4.0 % N/A N/A Cambridge Trust Company: Total capital (to risk-weighted assets) $ 218,012 11.6 % $ 150,732 8.0 % $ 197,836 10.5 % $ 188,415 10.0 % Tier I capital (to risk-weighted assets) 200,862 10.7 % 113,049 6.0 % 160,153 8.5 % 150,732 8.0 % Common equity tier I capital (to risk-weighted assets) 200,862 10.7 % 84,787 4.5 % 131,891 7.0 % 122,470 6.5 % Tier I capital (to average assets) 200,862 7.8 % 103,327 4.0 % 103,327 4.0 % 129,158 5.0 % (1) The 2013 Capital Rules adopted by the Federal Reserve, Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation implementing Basel III were fully phased-in effective January 1, 2019. 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 % |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Summary of Other Comprehensive Income | The following table presents the changes in accumulated other comprehensive income (loss) during the period, by component, net of tax: Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 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 period $ 1,909 $ (456 ) $ 1,453 $ (550 ) $ 127 $ (423 ) Reclassification adjustment for (gains)/losses recognized in net income (6 ) 2 (4 ) (2 ) — (2 ) Derivatives Change in interest rate contracts 1,696 (477 ) 1,219 — — — Defined benefit retirement plans Change in retirement liability 36 (10 ) 26 15 (5 ) 10 Total Other Comprehensive (Loss)/Income $ 3,635 $ (941 ) $ 2,694 $ (537 ) $ 122 $ (415 ) Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 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 period $ 3,334 $ (786 ) $ 2,548 $ (2,228 ) $ 453 $ (1,775 ) Reclassification adjustment for (gains)/losses recognized in net income 81 (19 ) 62 (2 ) — (2 ) Derivatives Change in interest rate contracts 1,654 (465 ) 1,189 — — — Defined benefit retirement plans Change in retirement liability 72 (20 ) 52 29 (9 ) 20 Total Other Comprehensive (Loss)/Income $ 5,141 $ (1,290 ) $ 3,851 $ (2,201 ) $ 444 $ (1,757 ) |
Summary of Reclassifications out of Accumulated Other Comprehensive Income ("AOCI") | Reclassifications out of Accumulated Other Comprehensive Income (“AOCI”) that have an impact on net income are presented below: Three Months Ended June 30, Details about Accumulated Other Comprehensive Income Components 2019 2018 Affected Line Item in the Statement where Net Income is Presented (dollars in thousands) Unrealized gains and losses on available for sale securities $ 6 $ 2 Gain/(loss) on disposition of investment securities Tax benefit or (expense) (2 ) — Provision for income taxes Net of tax $ 4 $ 2 Net income Six Months Ended June 30, Details about Accumulated Other Comprehensive Income Components 2019 2018 Affected Line Item in the Statement where Net Income is Presented (dollars in thousands) Unrealized gains and losses on available for sale securities $ (81 ) $ 2 Gain/(loss) on disposition of investment securities Tax benefit or (expense) 19 — Provision for income taxes Net of tax $ (62 ) $ 2 Net income |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (dollars in thousands, except per share data) Earnings per common share - basic: Numerator: Net income $ 4,272 $ 6,111 $ 10,470 $ 11,916 Less dividends and undistributed earnings allocated to participating securities (35 ) (60 ) (94 ) (121 ) Net income applicable to common shareholders $ 4,237 $ 6,051 $ 10,376 $ 11,795 Denominator: Weighted average common shares outstanding 4,682 4,060 4,379 4,057 Earnings per common share - basic $ 0.91 $ 1.49 $ 2.37 $ 2.91 Earnings per common share - diluted: Numerator: Net income $ 4,272 $ 6,111 $ 10,470 $ 11,916 Less dividends and undistributed earnings allocated to participating securities (35 ) (60 ) (94 ) (121 ) Net income applicable to common shareholders $ 4,237 $ 6,051 $ 10,376 $ 11,795 Denominator: Weighted average common shares outstanding 4,682 4,060 4,379 4,057 Dilutive effect of common stock equivalents 34 34 33 31 Weighted average diluted common shares outstanding 4,716 4,094 4,412 4,088 Earnings per common share - diluted $ 0.90 $ 1.48 $ 2.35 $ 2.89 |
Derivative And Hedging Activi_2
Derivative And Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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: June 30, 2019 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 $ 3,528 $ — Other Liabilities $ — Total derivatives designated as hedging instruments $ 3,528 $ — Derivatives not designated as hedging instruments Loan related derivative contracts Interest rate swaps with customers $ 181,291 Other Assets $ 12,348 $ — Other Liabilities $ — Mirror swaps with counterparties — Other Assets — 181,291 Other Liabilities 12,348 Risk participation agreements out to counterparties 19,000 Other Assets 46 — Other Liabilities — Risk participation agreements in with counterparties — Other Assets — 78,700 Other Liabilities 459 Total derivatives not designated as hedging instruments $ 12,394 $ 12,807 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 |
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 (“AOCI”) at June 30, 2019: Amount of Gain or (Loss) Recognized in OCI 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 AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Three Months Ended June 30, 2019 Three Months Ended June 30, 2019 (dollars in thousands) (dollars in thousands) Interest rate contracts $ 1,647 $ 2,080 $ (433 ) Interest Income $ (48 ) $ — $ (48 ) Total $ 1,647 $ 2,080 $ (433 ) $ (48 ) $ — $ (48 ) Amount of Gain or (Loss) Recognized in OCI 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 AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Six Months Ended June 30, 2019 Six Months Ended June 30, 2019 (dollars in thousands) (dollars in thousands) Interest rate contracts $ 1,558 $ 2,080 $ (522 ) Interest Income $ (96 ) $ — $ (96 ) Total $ 1,558 $ 2,080 $ (522 ) $ (96 ) $ — $ (96 ) |
Summary of Derivative Financial Instruments Income Statement | The following table presents the effect of the Company’s derivative financial instruments on the Income Statement at June 30, 2019: Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Interest Income Interest Income (dollars in thousands) Total amount of income presented in the income statement in which the effects of fair value or cash flow hedges are recorded $ (48 ) $ (96 ) 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) reclassed from AOCI into income $ (48 ) $ (96 ) Amount of gain or (loss) reclassed from AOCI into income - Included Component — — Amount of gain or (loss) reclassed from AOCI into income - Excluded Component $ (48 ) $ (96 ) |
Summary of Derivative Financial Instruments Not Designated as Hedging Instruments | The following tables present 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 Three Months Ended June 30, Three Months Ended June 30, 2019 2018 Location of Gain or (Loss) (dollars in thousands) Other contracts Other income $ (61 ) $ 12 Total $ (61 ) $ 12 Amount of Gain or (Loss) Recognized in Income on Derivative Six Months Ended June 30, Six Months Ended June 30, 2019 2018 Location of Gain or (Loss) (dollars in thousands) Other contracts Other income $ 13 $ 40 Total $ 13 $ 40 |
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 June 30, 2019 and December 31, 2018: Gross Amounts Not Offset Gross Amounts of Recognized Gross Amounts Offset Net Amounts Recognized Financial Instruments Collateral Pledged (Received) Net Amount June 30, 2019 (dollars in thousands) Offsetting of Derivative Assets Derivative Assets $ 15,922 $ — $ 15,922 $ 3,663 $ — $ 12,259 Offsetting of Derivative Liabilities Derivative Liabilities $ 12,807 $ — $ 12,807 $ 3,663 $ 8,428 $ 716 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 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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: June 30, 2019 December 31, 2018 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (dollars in thousands) Financial assets Cash and cash equivalents $ 38,557 $ 38,557 $ 18,473 $ 18,473 Securities available for sale 153,053 153,053 168,163 168,163 Securities held to maturity 286,350 291,993 282,869 281,310 Loans, net 2,079,451 2,036,666 1,543,004 1,484,905 Loans held for sale 384 384 — — FHLB Boston stock 8,245 8,245 6,844 6,844 Accrued interest receivable 7,485 7,485 5,762 5,762 Mortgage servicing rights 891 1,105 666 941 Interest rate contracts 3,528 3,528 1,970 1,970 Loan level interest rate swaps 12,348 12,348 5,782 5,782 Risk participation agreements out to counterparties 46 46 28 28 Financial liabilities Deposits 2,329,665 2,328,568 1,811,410 1,809,051 Short-term borrowings 103,000 103,031 90,000 90,000 Long-term borrowings 3,323 3,316 3,409 3,363 Loan level interest rate swaps 12,348 12,348 5,782 5,782 Risk participation agreements in with counterparties 459 459 179 179 |
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 June 30, 2019 Level 1 Level 2 Level 3 Total (dollars in thousands) Measured on a recurring basis Securities available for sale U.S. GSE obligations $ — $ 49,815 $ — $ 49,815 Mortgage-backed securities — 103,238 — 103,238 Corporate debt securities — — — — Other assets Interest rate swaps with customers — 12,348 — 12,348 Risk participation agreements out to counterparties — 46 — 46 Interest rate contracts — 3,528 — 3,528 Other liabilities Mirror swaps with counterparties — 12,348 — 12,348 Risk participation agreements in with counterparties — 459 — 459 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 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 |
Schedule of Carrying Value of Assets Measured at Fair Value on a Non-Recurring Basis | The following table presents the carrying value of assets held at June 30, 2019, which were measured at fair value on a non-recurring basis during the three and six months ended June 30, 2019: June 30, 2019 Level 1 Level 2 Level 3 Total (dollars in thousands) Items recorded at fair value on a nonrecurring basis Assets Collateral dependent impaired loans $ — $ — $ — $ — Loans held for sale — — 384 384 Other real estate owned — — 185 185 Total $ — $ — $ 569 $ 569 |
Mergers - Additional Informatio
Mergers - Additional Information (Details) $ / shares in Units, $ in Thousands | Apr. 17, 2019USD ($)$ / sharesshares | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) |
Business Acquisition [Line Items] | |||
Merger expenses | $ 3,450 | $ 3,541 | |
Optima Bank And Trust Company | |||
Business Acquisition [Line Items] | |||
Business combination, conversion price per share | $ / shares | $ 32 | ||
Business combination, share conversion ratio | 0.3468 | ||
Business combination percentage of common stock transaction | 95.00% | ||
Business combination percentage of cash transaction | 5.00% | ||
Common stock issued related to merger | shares | 722,746 | ||
Cash payment related to merger | $ 3,500 | ||
Total consideration paid | $ 64,300 | ||
Merger expenses | 3,500 | 3,500 | |
Merger-related costs | $ 3,500 | $ 3,500 |
Mergers - Summary of Estimated
Mergers - Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) | Jun. 30, 2019 | Apr. 17, 2019 | Dec. 31, 2018 |
Assets | |||
Goodwill | $ 31,206,000 | $ 412,000 | |
Optima Bank And Trust Company | |||
Assets | |||
Cash and cash equivalents | $ 6,902,000 | ||
Investments | 23,298,000 | ||
Loans | 475,406,000 | ||
Premises and equipment | 6,286,000 | ||
Goodwill | $ 30,800,000 | 30,794,000 | |
Core deposit and other intangibles | 3,609,000 | ||
Other assets | 9,408,000 | ||
Total assets acquired | 555,703,000 | ||
Liabilities | |||
Deposits | 477,189,000 | ||
Borrowings | 13,459,000 | ||
Other liabilities | 799,000 | ||
Total liabilities assumed | 491,447,000 | ||
Purchase price | $ 64,256,000 |
Mergers - Summary of Selected P
Mergers - Summary of Selected Pro Forma Financial Information (Details) - Optima Bank And Trust Company - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Business Acquisition [Line Items] | ||||
Net interest and dividend income after provision for loan losses | $ 19,780 | $ 19,364 | $ 39,776 | $ 37,737 |
Net Income | $ 8,075 | $ 6,646 | $ 14,988 | $ 13,207 |
Recently Issued and Adopted A_2
Recently Issued and Adopted Accounting Standards - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Right-of-use asset | $ 35,604 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Right-of-use asset | $ 32,900 |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Cash And Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 38,557,000 | $ 18,473,000 | $ 35,119,000 | $ 103,591,000 |
Federal Reserve Bank of Boston | ||||
Cash And Cash Equivalents [Line Items] | ||||
Reserve balance of cash and due from banks | 26,900,000 | 12,700,000 | ||
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Amortized Cost | $ 153,765 | $ 172,290 |
Available for sale securities, Gross Unrealized Gains | 359 | 118 |
Available for sale securities, Gross Unrealized Losses | (1,071) | (4,245) |
Available for sale securities, Fair Value | 153,053 | 168,163 |
Held to maturity securities, Amortized Cost | 286,350 | 282,869 |
Held to maturity securities, Gross Unrealized Gains | 5,798 | 1,431 |
Held to maturity securities, Gross Unrealized Losses | (155) | (2,990) |
Held to maturity securities, Fair Value | 291,993 | 281,310 |
Total, Amortized Cost | 440,115 | 455,159 |
Total, Gross Unrealized Gains | 6,157 | 1,549 |
Total, Gross Unrealized Losses | (1,226) | (7,235) |
Total, Fair Value | 445,046 | 449,473 |
U.S. GSE Obligations | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Amortized Cost | 50,000 | 75,004 |
Available for sale securities, Gross Unrealized Gains | 1 | |
Available for sale securities, Gross Unrealized Losses | (186) | (965) |
Available for sale securities, Fair Value | 49,815 | 74,039 |
Held to maturity securities, Amortized Cost | 22,572 | 32,571 |
Held to maturity securities, Gross Unrealized Gains | 3 | |
Held to maturity securities, Gross Unrealized Losses | (17) | (238) |
Held to maturity securities, Fair Value | 22,558 | 32,333 |
Corporate Debt Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Amortized Cost | 5,015 | |
Available for sale securities, Gross Unrealized Losses | (159) | |
Available for sale securities, Fair Value | 4,856 | |
Held to maturity securities, Amortized Cost | 6,977 | 6,972 |
Held to maturity securities, Gross Unrealized Gains | 92 | |
Held to maturity securities, Gross Unrealized Losses | (107) | |
Held to maturity securities, Fair Value | 7,069 | 6,865 |
Mortgage Backed Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Amortized Cost | 103,765 | 92,271 |
Available for sale securities, Gross Unrealized Gains | 358 | 118 |
Available for sale securities, Gross Unrealized Losses | (885) | (3,121) |
Available for sale securities, Fair Value | 103,238 | 89,268 |
Held to maturity securities, Amortized Cost | 181,776 | 168,118 |
Held to maturity securities, Gross Unrealized Gains | 2,790 | 134 |
Held to maturity securities, Gross Unrealized Losses | (138) | (2,290) |
Held to maturity securities, Fair Value | 184,428 | 165,962 |
Municipal Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Held to maturity securities, Amortized Cost | 75,025 | 75,208 |
Held to maturity securities, Gross Unrealized Gains | 2,913 | 1,297 |
Held to maturity securities, Gross Unrealized Losses | (355) | |
Held to maturity securities, Fair Value | $ 77,938 | $ 76,150 |
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 | Jun. 30, 2019 | Dec. 31, 2018 |
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 | $ 6,844 | $ 902 |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses, Less than 12 months | (41) | (98) |
Temporarily Impaired Securities, Available for sale securities, Fair Value, 12 months or longer | 116,058 | 164,808 |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses, 12 months or longer | (1,030) | (4,147) |
Temporarily Impaired Securities, Available for sale securities, Fair Value | 122,902 | 165,710 |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses | (1,071) | (4,245) |
Temporarily Impaired Securities, Held to maturity securities, Fair Value, Less than 12 months | 51,063 | |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses, Less than 12 months | (410) | |
Temporarily Impaired Securities, Held to maturity securities, Fair Value, 12 months or longer | 62,388 | 128,876 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses, 12 months or longer | (155) | (2,580) |
Temporarily Impaired Securities, Held to maturity securities, Fair Value | 62,388 | 179,939 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses | (155) | (2,990) |
Temporarily Impaired Securities, Fair Value, Less than 12 months | 6,844 | 51,965 |
Temporarily Impaired Securities, Unrealized Losses, Less than 12 months | (41) | (508) |
Temporarily Impaired Securities, Fair Value, 12 months or longer | 178,446 | 293,684 |
Temporarily Impaired Securities, Unrealized Losses, 12 months or longer | (1,185) | (6,727) |
Temporarily Impaired Securities, Fair Value | 185,290 | 345,649 |
Temporarily Impaired Securities, Unrealized Losses | (1,226) | (7,235) |
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, 12 months or longer | 44,814 | 74,039 |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses, 12 months or longer | (186) | (965) |
Temporarily Impaired Securities, Available for sale securities, Fair Value | 44,814 | 74,039 |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses | (186) | (965) |
Temporarily Impaired Securities, Held to maturity securities, Fair Value, Less than 12 months | 4,995 | |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses, Less than 12 months | (5) | |
Temporarily Impaired Securities, Held to maturity securities, Fair Value, 12 months or longer | 14,980 | 27,338 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses, 12 months or longer | (17) | (233) |
Temporarily Impaired Securities, Held to maturity securities, Fair Value | 14,980 | 32,333 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses | (17) | (238) |
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 | 6,844 | |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses, Less than 12 months | (41) | |
Temporarily Impaired Securities, Available for sale securities, Fair Value, 12 months or longer | 71,244 | 86,815 |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses, 12 months or longer | (844) | (3,121) |
Temporarily Impaired Securities, Available for sale securities, Fair Value | 78,088 | 86,815 |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses | (885) | (3,121) |
Temporarily Impaired Securities, Held to maturity securities, Fair Value, Less than 12 months | 30,719 | |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses, Less than 12 months | (216) | |
Temporarily Impaired Securities, Held to maturity securities, Fair Value, 12 months or longer | 47,096 | 93,225 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses, 12 months or longer | (138) | (2,074) |
Temporarily Impaired Securities, Held to maturity securities, Fair Value | 47,096 | 123,944 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses | (138) | (2,290) |
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 | |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses, 12 months or longer | (61) | |
Temporarily Impaired Securities, Available for sale securities, Fair Value | 4,856 | |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses | (159) | |
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 | |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses, Less than 12 months | (82) | |
Temporarily Impaired Securities, Held to maturity securities, Fair Value, 12 months or longer | 312 | 8,313 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses, 12 months or longer | (273) | |
Temporarily Impaired Securities, Held to maturity securities, Fair Value | $ 312 | 16,797 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses | $ (355) |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | Jun. 30, 2019USD ($)Security | Dec. 31, 2018USD ($)Security |
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Number of debt securities with unrealized losses | Security | 68 | 142 |
Aggregate depreciation percentage of gross unrealized losses from amortized cost | 0.66% | 2.05% |
Maximum | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Percentage of unrealized loss on amortized cost | 2.43% | 9.79% |
Unrealized dollar loss of amortized cost basis | $ 79,000 | $ 189,000 |
Unrealized loss of amortized cost basis | $ 98,000 | |
Percentage of unrealized dollar loss on amortized cost | 5.34% |
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Within One Year, Amortized Cost | $ 10,000 | |
Available for sale securities, Within One Year, Fair Value | 9,971 | |
Available for sale securities, After One, But Within Five Years, Amortized Cost | 40,058 | |
Available for sale securities, After One, But Within Five Years, Fair Value | 39,903 | |
Available for sale securities, After Five, But Within Ten Years, Amortized Cost | 29,462 | |
Available for sale securities, After Five, But Within Ten Years, Fair Value | 29,176 | |
Available for sale securities, After Ten Years, Amortized Cost | 74,245 | |
Available for sale securities, After Ten Years, Fair Value | 74,003 | |
Available for sale securities, Total, Amortized Cost | 153,765 | |
Available for sale securities, Total, Fair Value | 153,053 | |
Held to maturity securities, Within One Year, Amortized Cost | 7,429 | |
Held to maturity securities, Within One Year, Fair Value | 7,435 | |
Held to maturity securities, After One, But Within Five Years, Amortized Cost | 37,298 | |
Held to maturity securities, After One, But Within Five Years, Fair Value | 37,615 | |
Held to maturity securities, After Five, But Within Ten Years, Amortized Cost | 96,019 | |
Held to maturity securities, After Five, But Within Ten Years, Fair Value | 99,253 | |
Held to maturity securities, After Ten Years, Amortized Cost | 145,604 | |
Held to maturity securities, After Ten Years, Fair Value | 147,690 | |
Held to maturity securities, Amortized Cost | 286,350 | $ 282,869 |
Held to maturity securities, Fair Value | 291,993 | 281,310 |
Available for sale securities and Held to maturity securities, Within One Year, Amortized Cost | 17,429 | |
Available for sale securities and Held to maturity securities, Within One Year, Fair Value | 17,406 | |
Available for sale securities and Held to maturity securities, After One, But Within Five Years, Amortized Cost | 77,356 | |
Available for sale securities and Held to maturity securities, After One, But Within Five Years, Fair Value | 77,518 | |
Available for sale securities and Held to maturity securities, After Five, But Within Ten Years, Amortized Cost | 125,481 | |
Available for sale securities and Held to maturity securities, After Five, But Within Ten Years, Fair Value | 128,429 | |
Available for sale securities and Held to maturity securities, After Ten Years, Amortized Cost | 219,849 | |
Available for sale securities and Held to maturity securities, After Ten Years, Fair Value | 221,693 | |
Available for sale securities and Held to maturity securities, Total, Amortized Cost | 440,115 | |
Available for sale securities and Held to maturity securities, Total, Fair Value | 445,046 | |
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 | 10,000 | |
Available for sale securities, Within One Year, Fair Value | 9,971 | |
Available for sale securities, After One, But Within Five Years, Amortized Cost | 40,000 | |
Available for sale securities, After One, But Within Five Years, Fair Value | 39,844 | |
Available for sale securities, Total, Amortized Cost | 50,000 | |
Available for sale securities, Total, Fair Value | 49,815 | |
Held to maturity securities, Within One Year, Amortized Cost | 4,997 | |
Held to maturity securities, Within One Year, Fair Value | 4,982 | |
Held to maturity securities, After One, But Within Five Years, Amortized Cost | 17,575 | |
Held to maturity securities, After One, But Within Five Years, Fair Value | 17,576 | |
Held to maturity securities, Amortized Cost | 22,572 | |
Held to maturity securities, Fair Value | 22,558 | |
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 | 58 | |
Available for sale securities, After One, But Within Five Years, Fair Value | 59 | |
Available for sale securities, After Five, But Within Ten Years, Amortized Cost | 29,462 | |
Available for sale securities, After Five, But Within Ten Years, Fair Value | 29,176 | |
Available for sale securities, After Ten Years, Amortized Cost | 74,245 | |
Available for sale securities, After Ten Years, Fair Value | 74,003 | |
Available for sale securities, Total, Amortized Cost | 103,765 | |
Available for sale securities, Total, Fair Value | 103,238 | |
Held to maturity securities, Within One Year, Amortized Cost | 8 | |
Held to maturity securities, Within One Year, Fair Value | 8 | |
Held to maturity securities, After Five, But Within Ten Years, Amortized Cost | 52,063 | |
Held to maturity securities, After Five, But Within Ten Years, Fair Value | 53,202 | |
Held to maturity securities, After Ten Years, Amortized Cost | 129,705 | |
Held to maturity securities, After Ten Years, Fair Value | 131,218 | |
Held to maturity securities, Amortized Cost | 181,776 | |
Held to maturity securities, Fair Value | 184,428 | |
Corporate Debt Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Held to maturity securities, After One, But Within Five Years, Amortized Cost | 6,977 | |
Held to maturity securities, After One, But Within Five Years, Fair Value | 7,069 | |
Held to maturity securities, Amortized Cost | 6,977 | |
Held to maturity securities, Fair Value | 7,069 | |
Municipal Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Held to maturity securities, Within One Year, Amortized Cost | 2,424 | |
Held to maturity securities, Within One Year, Fair Value | 2,445 | |
Held to maturity securities, After One, But Within Five Years, Amortized Cost | 12,746 | |
Held to maturity securities, After One, But Within Five Years, Fair Value | 12,970 | |
Held to maturity securities, After Five, But Within Ten Years, Amortized Cost | 43,956 | |
Held to maturity securities, After Five, But Within Ten Years, Fair Value | 46,051 | |
Held to maturity securities, After Ten Years, Amortized Cost | 15,899 | |
Held to maturity securities, After Ten Years, Fair Value | 16,472 | |
Held to maturity securities, Amortized Cost | 75,025 | 75,208 |
Held to maturity securities, Fair Value | $ 77,938 | $ 76,150 |
Investment Securities - Summa_2
Investment Securities - Summary of Gains (Losses) from Sale of Investment Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | ||||
Amortized cost of securities sold | $ 10,231 | $ 700 | $ 26,231 | $ 700 |
Gain/(loss) realized on securities sold | 6 | 2 | (81) | 2 |
Net proceeds from securities sold | $ 10,237 | $ 702 | $ 26,150 | $ 702 |
Loans and the Allowance for L_3
Loans and the Allowance for Loan Losses - Loans Outstanding by Category (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Loans And Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 2,096,550 | $ 1,559,772 |
Residential Mortgage | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Deferred costs (fees) net of unearned fees | 1,722 | 1,408 |
Total loans | 938,559 | 604,331 |
Residential Mortgage | Construction | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 28,437 | |
Residential Mortgage | Mortgages - Fixed Rate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 409,706 | 293,267 |
Residential Mortgage | Mortgages - Adjustable Rate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 498,694 | 309,656 |
Commercial Mortgage | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Deferred costs (fees) net of unearned fees | 124 | 82 |
Total loans | 905,442 | 757,957 |
Commercial Mortgage | Construction | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 51,816 | 44,146 |
Commercial Mortgage | Mortgages - Nonowner Occupied | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 788,982 | 654,394 |
Commercial Mortgage | Mortgages - Owner Occupied | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 64,520 | 59,335 |
Home Equity | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Deferred costs (fees) net of unearned fees | 237 | 250 |
Total loans | 85,814 | 69,336 |
Home Equity | Home Equity - Lines of Credit | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 79,814 | 63,421 |
Home Equity | Home Equity - Term Loans | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 5,763 | 5,665 |
Commercial & Industrial | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 134,338 | 93,728 |
Deferred costs (fees) net of unearned fees | (31) | (16) |
Total loans | 134,307 | 93,712 |
Consumer | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Deferred costs (fees) net of unearned fees | 13 | 13 |
Total loans | 32,428 | 34,436 |
Consumer | Secured | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 31,380 | 33,252 |
Consumer | Unsecured | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | $ 1,035 | $ 1,171 |
Loans and the Allowance for L_4
Loans and the Allowance for Loan Losses - Additional Information (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019USD ($)Loan | Jun. 30, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan | |
Receivables [Abstract] | |||
Loans outstanding to directors and officers | $ 36,000 | $ 36,000 | $ 488,000 |
Loans to directors and officers, additions | 67,000 | 139,000 | |
Loans to directors and officers, repayments | 519,000 | 167,000 | |
Commitments to lend additional funds to borrowers whose loans were on non-accrual status | $ 0 | $ 0 | $ 0 |
Number of TDRs defaulted during the period | Loan | 0 | 0 | 0 |
Number of loans determined to be troubled debt restructurings | Loan | 2 | 3 | |
Troubled debt restructuring carrying value | $ 105,000 | $ 105,000 | $ 117,000 |
Number of loans modified as troubled debt restructuring | Loan | 0 | 0 | 0 |
Specific allowances for troubled debt restructurings | $ 0 | $ 0 | $ 0 |
Other real estate owned | 185,000 | 185,000 | |
Loans secured by one- to-four family residential properties in process of foreclosure | $ 0 | $ 0 | $ 351,000 |
Loans and the Allowance for L_5
Loans and the Allowance for Loan Losses - Non-performing Loans Disaggregated by Loan Category (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Troubled debt restructurings | $ 105,000 | $ 117,000 |
Non-Performing Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | 952,000 | 525,000 |
Troubled debt restructurings | 105,000 | 117,000 |
Total | 1,057,000 | 642,000 |
Non-Performing Loans | Residential Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | 507,000 | 512,000 |
Troubled debt restructurings | 105,000 | 111,000 |
Total | 612,000 | 623,000 |
Non-Performing Loans | Commercial Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | 135,000 | |
Total | 135,000 | |
Non-Performing Loans | Home Equity | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | 12,000 | 13,000 |
Total | 12,000 | 13,000 |
Non-Performing Loans | Commercial & Industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | 298,000 | |
Troubled debt restructurings | 6,000 | |
Total | $ 298,000 | $ 6,000 |
Loans and the Allowance for L_6
Loans and the Allowance for Loan Losses - Loans Receivable Disaggregated by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | $ 2,096,550 | $ 1,559,772 |
Residential Mortgage | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 938,559 | 604,331 |
Residential Mortgage | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 937,947 | 603,708 |
Residential Mortgage | Non-Performing Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 612 | 623 |
Home Equity | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 85,814 | 69,336 |
Home Equity | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 85,802 | 69,323 |
Home Equity | Non-Performing Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 12 | 13 |
Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 32,428 | 34,436 |
Consumer | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 32,428 | 34,436 |
Commercial Mortgage | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 905,442 | 757,957 |
Commercial Mortgage | 1-6 (Pass) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 895,336 | 753,338 |
Commercial Mortgage | 7 (Special Mention) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 9,571 | 4,619 |
Commercial Mortgage | 8 (Substandard) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 535 | |
Commercial & Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 134,307 | 93,712 |
Commercial & Industrial | 1-6 (Pass) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 125,763 | 85,821 |
Commercial & Industrial | 7 (Special Mention) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 3,487 | 4,186 |
Commercial & Industrial | 8 (Substandard) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | $ 5,057 | $ 3,705 |
Loans and the Allowance for L_7
Loans and the Allowance for Loan Losses - Schedule of Loans Receivable Disaggregated by Past Due Status (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | $ 5,744 | $ 1,614 |
Current Loans | 2,090,806 | 1,558,158 |
Total loans | 2,096,550 | 1,559,772 |
30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 4,463 | 1,142 |
60-89 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 737 | 121 |
90 Days or Greater | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 544 | 351 |
Residential Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 3,199 | 1,506 |
Current Loans | 935,360 | 602,825 |
Total loans | 938,559 | 604,331 |
Residential Mortgage | 30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 2,093 | 1,034 |
Residential Mortgage | 60-89 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 721 | 121 |
Residential Mortgage | 90 Days or Greater | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 385 | 351 |
Commercial Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 1,943 | |
Current Loans | 903,499 | 757,957 |
Total loans | 905,442 | 757,957 |
Commercial Mortgage | 30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 1,943 | |
Commercial & Industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 584 | |
Current Loans | 133,723 | 93,712 |
Total loans | 134,307 | 93,712 |
Commercial & Industrial | 30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 425 | |
Commercial & Industrial | 90 Days or Greater | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 159 | |
Consumer loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 6 | 108 |
Current Loans | 32,422 | 34,328 |
Total loans | 32,428 | 34,436 |
Consumer loans | 30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 2 | 108 |
Consumer loans | 60-89 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 4 | |
Home Equity | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 12 | |
Current Loans | 85,802 | 69,336 |
Total loans | 85,814 | $ 69,336 |
Home Equity | 60-89 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | $ 12 |
Loans and the Allowance for L_8
Loans and the Allowance for Loan Losses - Information Pertaining to Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
With no required reserve recorded, Carrying Value | $ 712 | $ 1,141 | $ 712 | $ 1,141 |
With no required reserve recorded, Average Carrying Value | 717 | 1,148 | 722 | 1,154 |
With no required reserve recorded, Unpaid Principal Balance | 911 | 1,393 | 911 | 1,393 |
With no required reserve recorded, Interest Income Recognized | 1 | 3 | 1 | |
Carrying Value | 712 | 1,141 | 712 | 1,141 |
Average Carrying Value | 717 | 1,148 | 722 | 1,154 |
Unpaid Principal Balance | 911 | 1,393 | 911 | 1,393 |
Interest Income Recognized | 1 | 3 | 1 | |
Commercial and Industrial | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
With no required reserve recorded, Carrying Value | 17 | 17 | ||
With no required reserve recorded, Average Carrying Value | 20 | 22 | ||
With no required reserve recorded, Unpaid Principal Balance | 17 | 17 | ||
With no required reserve recorded, Interest Income Recognized | 1 | |||
Carrying Value | 17 | 17 | ||
Average Carrying Value | 20 | 22 | ||
Unpaid Principal Balance | 17 | 17 | ||
Interest Income Recognized | 1 | |||
Commercial Mortgage | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
With no required reserve recorded, Carrying Value | 213 | 213 | ||
With no required reserve recorded, Average Carrying Value | 213 | 213 | ||
With no required reserve recorded, Unpaid Principal Balance | 227 | 227 | ||
Carrying Value | 213 | 213 | ||
Average Carrying Value | 213 | 213 | ||
Unpaid Principal Balance | 227 | 227 | ||
Residential Mortgage | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
With no required reserve recorded, Carrying Value | 616 | 845 | 616 | 845 |
With no required reserve recorded, Average Carrying Value | 620 | 848 | 625 | 851 |
With no required reserve recorded, Unpaid Principal Balance | 778 | 1,051 | 778 | 1,051 |
With no required reserve recorded, Interest Income Recognized | 1 | 2 | ||
Carrying Value | 616 | 845 | 616 | 845 |
Average Carrying Value | 620 | 848 | 625 | 851 |
Unpaid Principal Balance | 778 | 1,051 | 778 | 1,051 |
Interest Income Recognized | 1 | 2 | ||
Home Equity | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
With no required reserve recorded, Carrying Value | 96 | 66 | 96 | 66 |
With no required reserve recorded, Average Carrying Value | 97 | 67 | 97 | 68 |
With no required reserve recorded, Unpaid Principal Balance | 133 | 98 | 133 | 98 |
With no required reserve recorded, Interest Income Recognized | 1 | |||
Carrying Value | 96 | 66 | 96 | 66 |
Average Carrying Value | 97 | 67 | 97 | 68 |
Unpaid Principal Balance | $ 133 | $ 98 | 133 | $ 98 |
Interest Income Recognized | $ 1 |
Loans and the Allowance for L_9
Loans and the Allowance for Loan Losses - Summary of Changes in Allowance for Loan Losses Disaggregated by Loan Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses, Beginning balance | $ 16,652 | $ 15,732 | $ 16,768 | $ 15,320 |
Charge-offs | (164) | (23) | (205) | (32) |
Recoveries | 16 | 15 | 33 | 27 |
Provision for (Release of) | 595 | (79) | 503 | 330 |
Allowance for loan losses, Ending balance | 17,099 | 15,645 | 17,099 | 15,645 |
Residential Mortgage | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses, Beginning balance | 5,256 | 4,692 | 4,946 | 5,047 |
Provision for (Release of) | 207 | 187 | 517 | (168) |
Allowance for loan losses, Ending balance | 5,463 | 4,879 | 5,463 | 4,879 |
Commercial Mortgage | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses, Beginning balance | 9,369 | 8,937 | 9,626 | 8,289 |
Charge-offs | (55) | (55) | ||
Provision for (Release of) | 115 | (263) | (142) | 385 |
Allowance for loan losses, Ending balance | 9,429 | 8,674 | 9,429 | 8,674 |
Home Equity | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses, Beginning balance | 534 | 570 | 517 | 630 |
Provision for (Release of) | (3) | 31 | 14 | (29) |
Allowance for loan losses, Ending balance | 531 | 601 | 531 | 601 |
Commercial & Industrial | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses, Beginning balance | 1,245 | 1,145 | 1,415 | 946 |
Charge-offs | (100) | (6) | (130) | (11) |
Recoveries | 12 | 12 | 25 | 22 |
Provision for (Release of) | 288 | 44 | 135 | 238 |
Allowance for loan losses, Ending balance | 1,445 | 1,195 | 1,445 | 1,195 |
Consumer | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses, Beginning balance | 248 | 298 | 264 | 315 |
Charge-offs | (9) | (17) | (20) | (21) |
Recoveries | 4 | 3 | 8 | 5 |
Provision for (Release of) | (12) | 12 | (21) | (3) |
Allowance for loan losses, Ending balance | $ 231 | 296 | $ 231 | 296 |
Impaired | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses, Beginning balance | 90 | 93 | ||
Provision for (Release of) | $ (90) | $ (93) |
Loans and the Allowance for _10
Loans and the Allowance for Loan Losses - Summary of Allowance for Loan Losses and Related Loans Receivable Disaggregated by Impairment Method (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Collectively evaluated for impairment | $ 17,099 | $ 16,768 | ||||
Allowance for loan losses | 17,099 | $ 16,652 | 16,768 | $ 15,645 | $ 15,732 | $ 15,320 |
Individually evaluated for impairment | 712 | 740 | ||||
Collectively evaluated for impairment | 2,095,838 | 1,559,032 | ||||
Total loans | 2,096,550 | 1,559,772 | ||||
Residential Mortgage | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Collectively evaluated for impairment | 5,463 | 4,946 | ||||
Allowance for loan losses | 5,463 | 5,256 | 4,946 | 4,879 | 4,692 | 5,047 |
Individually evaluated for impairment | 616 | 647 | ||||
Collectively evaluated for impairment | 937,943 | 603,684 | ||||
Total loans | 938,559 | 604,331 | ||||
Commercial Mortgage | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Collectively evaluated for impairment | 9,429 | 9,626 | ||||
Allowance for loan losses | 9,429 | 9,369 | 9,626 | 8,674 | 8,937 | 8,289 |
Collectively evaluated for impairment | 905,442 | 757,957 | ||||
Total loans | 905,442 | 757,957 | ||||
Home Equity | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Collectively evaluated for impairment | 531 | 517 | ||||
Allowance for loan losses | 531 | 534 | 517 | 601 | 570 | 630 |
Individually evaluated for impairment | 96 | 88 | ||||
Collectively evaluated for impairment | 85,718 | 69,248 | ||||
Total loans | 85,814 | 69,336 | ||||
Commercial & Industrial | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Collectively evaluated for impairment | 1,445 | 1,415 | ||||
Allowance for loan losses | 1,445 | 1,245 | 1,415 | 1,195 | 1,145 | 946 |
Individually evaluated for impairment | 5 | |||||
Collectively evaluated for impairment | 134,307 | 93,707 | ||||
Total loans | 134,307 | 93,712 | ||||
Consumer | ||||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||||
Collectively evaluated for impairment | 231 | 264 | ||||
Allowance for loan losses | 231 | $ 248 | 264 | $ 296 | $ 298 | $ 315 |
Collectively evaluated for impairment | 32,428 | 34,436 | ||||
Total loans | $ 32,428 | $ 34,436 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Apr. 17, 2019 | |
Finite Lived Intangible Assets [Line Items] | ||||||
Carrying value of goodwill | $ 31,206,000 | $ 31,206,000 | $ 412,000 | |||
Impairment of goodwill recognized | 0 | $ 0 | ||||
Carrying value of intangible asset | 3,519,000 | $ 3,519,000 | ||||
Mortgage Servicing Rights | ||||||
Finite Lived Intangible Assets [Line Items] | ||||||
Weighted average amortization period | 6 years | 7 years 6 months | ||||
Loans held for sale | 384,000 | $ 384,000 | $ 0 | |||
Amount of mortgage loans sold and servicing rights retained | 867,000 | $ 1,600,000 | ||||
Net gains recognized in gain on loans held for sale | 15,000 | $ 18,000 | 31,000 | $ 45,000 | ||
Fair value of mortgage servicing rights portfolio | 1,100,000 | $ 1,000,000 | 1,100,000 | $ 1,000,000 | ||
Optima Bank And Trust Company | ||||||
Finite Lived Intangible Assets [Line Items] | ||||||
Carrying value of goodwill | 30,800,000 | 30,800,000 | $ 30,794,000 | |||
Optima Bank And Trust Company | Core Deposit Intangibles | ||||||
Finite Lived Intangible Assets [Line Items] | ||||||
Intangible assets acquired | 3,600,000 | |||||
Amortization of intangible asset | 90,000 | 90,000 | ||||
Carrying value of intangible asset | $ 3,500,000 | $ 3,500,000 | ||||
Weighted average amortization period | 10 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Beginning Balance, Mortgage servicing rights | $ 666 | $ 823 |
Mortgage servicing rights acquired as a result of the merger, Mortgage servicing rights | 334 | |
Mortgage servicing rights capitalized, Mortgage servicing rights | 7 | 5 |
Amortization charged against servicing income, Mortgage servicing rights | (106) | (70) |
Change in impairment reserve, Mortgage servicing rights | (30) | |
Ending Balance, Mortgage servicing rights | 901 | 728 |
Beginning Balance, Valuation allowance | (30) | |
Change in impairment reserve, Valuation allowance | (10) | 30 |
Ending Balance, Valudation allowance | (10) | |
Beginning Balance, Total | 666 | 793 |
Mortgage servicing rights acquired as a result of the merger, Total | 334 | |
Mortgage servicing rights capitalized, Total | 7 | 5 |
Amortization charged against servicing income, Total | (106) | (70) |
Change in impairment reserve, Total | (10) | |
Ending Balance, Total | $ 891 | $ 728 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Aggregate Estimated Future Amortization Expense (Details) - Mortgage Servicing Rights $ in Thousands | Jun. 30, 2019USD ($) |
Future Amortization Expense | |
Remainder of 2019 | $ 74 |
2020 | 133 |
2021 | 113 |
2022 | 96 |
2023 | 81 |
Thereafter | 404 |
Total | $ 901 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate | 26.50% | 23.70% | 23.90% | 22.80% | |
Net deferred tax assets | $ 7,267,000 | $ 7,267,000 | $ 8,717,000 | ||
Deferred tax assets, valuation allowance | $ 0 | $ 0 | $ 0 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Current | ||||
Federal | $ 1,305 | $ 1,642 | $ 1,676 | $ 2,235 |
State | 552 | 679 | 719 | 932 |
Total current expense | 1,857 | 2,321 | 2,395 | 3,167 |
Deferred | ||||
Federal | (217) | (286) | 601 | 238 |
State | (100) | (134) | 284 | 112 |
Total deferred | (317) | (420) | 885 | 350 |
Total income tax expense | $ 1,540 | $ 1,901 | $ 3,280 | $ 3,517 |
Pension and Retirement Plans -
Pension and Retirement Plans - Components of Net Periodic Benefit Cost (Credit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Pension Plan | ||||
Net periodic benefit cost | ||||
Interest cost | $ 414 | $ 392 | $ 840 | $ 778 |
Expected return on assets | (651) | (722) | (1,360) | (1,445) |
Amortization of prior service cost (credit) | (1) | (1) | (2) | (2) |
Amortization of net actuarial loss | 77 | 37 | 77 | 53 |
Net periodic benefit cost (credit) | (161) | (294) | (445) | (616) |
Supplemental Retirement Plan | ||||
Net periodic benefit cost | ||||
Service cost | 75 | 88 | 143 | 177 |
Interest cost | 85 | 77 | 175 | 154 |
Amortization of net actuarial loss | 1 | 2 | ||
Net periodic benefit cost (credit) | 160 | 166 | 318 | 333 |
Postretirement Healthcare Plan | ||||
Net periodic benefit cost | ||||
Service cost | 5 | 5 | 10 | 11 |
Interest cost | 6 | 6 | 12 | 11 |
Amortization of net actuarial loss | (1) | (5) | (2) | |
Net periodic benefit cost (credit) | $ 10 | $ 6 | $ 20 | $ 22 |
Pension and Retirement Plans _2
Pension and Retirement Plans - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Profit Sharing Plan | 401(k) | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined contribution plan, maximum employee contribution, percent | 100.00% | ||||||
Profit Sharing Plan | 401(k) | Maximum | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined contribution plan, employer matching contribution, percent | 4.00% | ||||||
Profit Sharing Plan | 401(k) | Minimum | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined contribution plan, employer matching contribution, percent | 3.00% | ||||||
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 | ||||||
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 | $ 552,000 | $ 584,000 | $ 1,100,000 | $ 1,400,000 | |||
Defined Contribution SERP Plan (“DC SERP”) | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Contribution expense related to plans | 43,000 | $ 75,000 | $ 86,000 | $ 126,000 | |||
Defined contribution plan, employer matching contribution, percent | 10.00% | ||||||
Qualified Defined Benefit Pension Plan | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Contributions to defined benefit pension plan | $ 0 | $ 0 | |||||
Qualified Defined Benefit Pension Plan | Scenario Forecast | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Contributions to defined benefit pension plan | $ 0 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) - 2017 Equity and Cash Incentive Plan | 3 Months Ended |
Jun. 30, 2019shares | |
RSUs | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares issued | 0 |
Performance Based Restricted Stock Units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares issued | 0 |
Stock Based Compensation - Sche
Stock Based Compensation - Schedule of Shares Issued and Fair Value of RSAs (Details) - RSAs - 2017 Equity and Cash Incentive Plan | 3 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares Granted | shares | 950 |
Weighted Average Fair Value at Grant Date | $ / shares | $ 84.66 |
Stock Based Compensation - Sc_2
Stock Based Compensation - Schedule of Pre-tax Expense Associated with All Outstanding Non-vested RSAs, RSUs, Performance Based Restricted Stock Units and Related Tax Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share Based Compensation [Abstract] | ||||
Stock based compensation expense | $ 699 | $ 807 | $ 1,318 | $ 1,347 |
Related tax benefits | $ 197 | $ 227 | $ 370 | $ 379 |
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Standby Letters of Credit | ||
Financial instruments whose contractual amount represents credit risk: | ||
Financial instruments with off-balance-sheet risk | $ 8,439 | $ 8,752 |
Unused Portion of Existing Lines of Credit | ||
Financial instruments whose contractual amount represents credit risk: | ||
Financial instruments with off-balance-sheet risk | 405,900 | 368,410 |
Origination of New Loans | ||
Financial instruments whose contractual amount represents credit risk: | ||
Financial instruments with off-balance-sheet risk | 59,930 | $ 24,505 |
Commitments to Sell Residential Mortgage Loans | ||
Financial instruments whose notional amount exceeds the amount of credit risk: | ||
Financial instrument notional amount exceeds credit risk | $ 3,188 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Lessee Lease Description [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 30 years. | |||
Renewal option period for operating leases | 30 years | 30 years | ||
Existence of option to expire | true | |||
Right-of-use asset | $ 35,604,000 | $ 35,604,000 | ||
Total rental expense | 1,400,000 | $ 1,100,000 | 2,700,000 | $ 2,200,000 |
Operating leases, minimum annual rental payments, receivable under sublease | $ 32,000 | |||
Operating leases minimum annual rental payments receivable under sublease agreement expired date | Jul. 31, 2019 | |||
Operating leases, rental income under sublease | 16,000 | $ 16,000 | $ 32,000 | $ 32,000 |
Optima Bank And Trust Company | ||||
Lessee Lease Description [Line Items] | ||||
Right-of-use asset | $ 4,700,000 | $ 4,700,000 |
Leases - Summary of Right-of-Us
Leases - Summary of Right-of-Use Asset and Net Lease Liability (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Right-of-use asset | $ 35,604 |
Operating lease, right-of-use asset, statement of financial position [extensible list] | us-gaap:OtherAssetsMember |
Lease liability | $ 36,982 |
Operating lease, liability, statement of financial position [extensible list] | us-gaap:OtherLiabilitiesMember |
Leases - Summary of Components
Leases - Summary of Components of Operating Lease Cost and Other Related Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Leases [Abstract] | ||||
Operating lease cost | $ 1,321,000 | $ 2,501,000 | ||
Sublease income | (16,000) | $ (16,000) | (32,000) | $ (32,000) |
Total Operating Lease Cost | 1,305,000 | 2,469,000 | ||
Other Information | ||||
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases | 1,231,000 | 2,308,000 | ||
Operating Lease - Operating Cash Flows (Liability reduction) | 937,000 | 1,744,000 | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 4,656,000 | $ 4,656,000 | ||
Weighted average lease term - operating Leases | 8 years 6 months 21 days | 8 years 6 months 21 days | ||
Weighted average discount Rate - operating leases | 3.38% | 3.38% |
Leases - Schedule of Total Mini
Leases - Schedule of Total Minimum Rentals Due in Future Periods under Lease Agreements (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Operating Leases Future Minimum Payments Due [Abstract] | ||
Remainder of 2019 | $ 5,426 | |
2020 | 5,527 | |
2021 | 5,428 | |
2022 | 5,181 | |
2023 | 4,864 | |
Thereafter | 16,380 | |
Total minimum lease payments | 42,806 | |
Less: interest | (5,824) | |
Total lease liability | $ 36,982 | |
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 - Minimum
Shareholders' Equity - Minimum Capital Requirements were Considered Well Capitalized by FRB and FDIC (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Total capital (to risk-weighted assets), Actual, Amount | $ 222,152,000 | $ 189,888,000 | |
Tier I capital (to risk-weighted assets), Actual, Amount | 205,002,000 | 173,070,000 | |
Common equity tier I capital (to risk-weighted assets), Actual, Amount | 205,002,000 | 173,070,000 | |
Tier I capital (to average assets), Actual, Amount | $ 205,002,000 | $ 173,070,000 | |
Total capital (to risk-weighted assets), Actual, Ratio | 11.80% | 13.20% | |
Tier I capital (to risk-weighted assets), Actual, Ratio | 10.90% | 12.10% | |
Common equity tier I capital (to risk-weighted assets), Actual, Ratio | 10.90% | 12.10% | |
Tier I capital (to average assets), Actual, Ratio | 7.90% | 8.50% | |
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy, Amount | $ 150,732,000 | $ 114,666,000 | |
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy, Amount | 113,049,000 | 86,000,000 | |
Common equity tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy, Amount | 84,787,000 | 64,500,000 | |
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy, Amount | $ 103,327,000 | $ 81,507,000 | |
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), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Phase-In Schedule, Amount | $ 141,541,000 | ||
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 | ||
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 | ||
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 | ||
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Phase-In Schedule, Ratio | 9.875% | ||
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% | ||
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% | ||
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Phase-In Schedule, Ratio | 4.00% | ||
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Amount | $ 197,836,000 | [1] | $ 150,500,000 |
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Amount | 160,153,000 | [1] | 121,833,000 |
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 | 131,891,000 | [1] | 100,333,000 |
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Amount | $ 103,327,000 | [1] | $ 81,507,000 |
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Ratio | 10.50% | [1] | 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% | [1] | 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% | [1] | 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% | [1] | 4.00% |
Cambridge Trust Company | |||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||
Total capital (to risk-weighted assets), Actual, Amount | $ 218,012,000 | $ 185,507,000 | |
Tier I capital (to risk-weighted assets), Actual, Amount | 200,862,000 | 168,689,000 | |
Common equity tier I capital (to risk-weighted assets), Actual, Amount | 200,862,000 | 168,689,000 | |
Tier I capital (to average assets), Actual, Amount | $ 200,862,000 | $ 168,689,000 | |
Total capital (to risk-weighted assets), Actual, Ratio | 11.60% | 12.90% | |
Tier I capital (to risk-weighted assets), Actual, Ratio | 10.70% | 11.80% | |
Common equity tier I capital (to risk-weighted assets), Actual, Ratio | 10.70% | 11.80% | |
Tier I capital (to average assets), Actual, Ratio | 7.80% | 8.30% | |
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy, Amount | $ 150,732,000 | $ 114,666,000 | |
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy, Amount | 113,049,000 | 86,000,000 | |
Common equity tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy, Amount | 84,787,000 | 64,500,000 | |
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy, Amount | $ 103,327,000 | $ 81,507,000 | |
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 | ||
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 | ||
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 | ||
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 | ||
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Phase-In Schedule, Ratio | 9.875% | ||
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% | ||
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% | ||
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Phase-In Schedule, Ratio | 4.00% | ||
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Amount | $ 197,836,000 | [1] | $ 150,500,000 |
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Amount | 160,153,000 | [1] | 121,833,000 |
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 | 131,891,000 | [1] | 100,333,000 |
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Amount | $ 103,327,000 | [1] | $ 81,507,000 |
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Ratio | 10.50% | [1] | 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% | [1] | 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% | [1] | 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% | [1] | 4.00% |
Total capital (to risk-weighted assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 188,415,000 | $ 143,333,000 | |
Tier I capital (to risk-weighted assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | 150,732,000 | 114,666,000 | |
Common equity tier I capital (to risk-weighted assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | 122,470,000 | 93,166,000 | |
Tier I capital (to average assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 129,158,000 | $ 101,884,000 | |
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% | |
[1] | The 2013 Capital Rules adopted by the Federal Reserve, Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation implementing Basel III were fully phased-in effective January 1, 2019. |
Other Comprehensive Income - Su
Other Comprehensive Income - Summary of Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Unrealized (losses)/gains on available for sale securities, before tax amount | ||||
Unrealized holding (losses)/gains arising during the period, before tax amount | $ 1,909 | $ (550) | $ 3,334 | $ (2,228) |
Reclassification adjustment for (gains)/losses recognized in net income, before tax amount | (6) | (2) | 81 | (2) |
Derivatives, before tax amount | ||||
Change in interest rate contracts, before tax amount | 1,696 | 1,654 | ||
Defined benefit retirement plans, before tax amount | ||||
Change in retirement liability, before tax amount | 36 | 15 | 72 | 29 |
Total Other Comprehensive (Loss)/Income, before tax amount | 3,635 | (537) | 5,141 | (2,201) |
Unrealized (losses)/gains on available for sale securities, tax (expense) or benefit | ||||
Unrealized holding (losses)/gains arising during the period, tax (expense) or benefit | (456) | 127 | (786) | 453 |
Reclassification adjustment for (gains)/losses recognized in net income, tax (expense) or benefit | 2 | (19) | ||
Derivatives, tax (expense) or benefit | ||||
Change in interest rate contracts, tax (expense) or benefit | (477) | (465) | ||
Defined benefit retirement plans, tax (expense) or benefit | ||||
Change in retirement liability, tax (expense) or benefit | (10) | (5) | (20) | (9) |
Total Other Comprehensive (Loss)/Income, tax (expense) or benefit | (941) | 122 | (1,290) | 444 |
Unrealized (losses)/gains on available for sale securities, net-of-tax amount | ||||
Unrealized holding (losses)/gains arising during the period, net-of-tax amount | 1,453 | (423) | 2,548 | (1,775) |
Reclassification adjustment for (gains)/losses recognized in net income, net-of-tax amount | (4) | (2) | 62 | (2) |
Derivatives, net-of-tax amount | ||||
Change in interest rate contracts, net-of-tax amount | 1,219 | 1,189 | ||
Defined benefit retirement plans, net-of-tax amount | ||||
Change in retirement liability, net-of-tax amount | 26 | 10 | 52 | 20 |
Other comprehensive income/(loss) | $ 2,694 | $ (415) | $ 3,851 | $ (1,757) |
Other Comprehensive Income - _2
Other Comprehensive Income - Summary of Reclassifications out of Accumulated Other Comprehensive Income ("AOCI") (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Unrealized gains and losses on available for sale securities | $ 6 | $ 2 | $ (81) | $ 2 |
Tax benefit or (expense) | (1,540) | (1,901) | (3,280) | (3,517) |
Net income | 4,272 | 6,111 | 10,470 | 11,916 |
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 | 6 | 2 | (81) | 2 |
Tax benefit or (expense) | (2) | 19 | ||
Net income | $ 4 | $ 2 | $ (62) | $ 2 |
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||||
Net income | $ 4,272 | $ 6,111 | $ 10,470 | $ 11,916 |
Less dividends and undistributed earnings allocated to participating securities | (35) | (60) | (94) | (121) |
Net income applicable to common shareholders | $ 4,237 | $ 6,051 | $ 10,376 | $ 11,795 |
Denominator: | ||||
Weighted average number of shares outstanding, basic | 4,682,109 | 4,059,927 | 4,379,141 | 4,057,156 |
Earnings per common share - basic | $ 0.91 | $ 1.49 | $ 2.37 | $ 2.91 |
Numerator: | ||||
Net income | $ 4,272 | $ 6,111 | $ 10,470 | $ 11,916 |
Less dividends and undistributed earnings allocated to participating securities | (35) | (60) | (94) | (121) |
Net income applicable to common shareholders | $ 4,237 | $ 6,051 | $ 10,376 | $ 11,795 |
Denominator: | ||||
Weighted average number of shares outstanding, basic | 4,682,109 | 4,059,927 | 4,379,141 | 4,057,156 |
Dilutive effect of common stock equivalents | 34,000 | 34,000 | 33,000 | 31,000 |
Weighted average diluted common shares outstanding | 4,715,724 | 4,094,489 | 4,412,239 | 4,087,790 |
Earnings per common share - diluted | $ 0.90 | $ 1.48 | $ 2.35 | $ 2.89 |
Derivative And Hedging Activite
Derivative And Hedging Activites - Summary of Fair Values of Derivative Instruments in the Company's Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Fair value | $ 15,922 | $ 7,780 |
Derivative Liabilities, Fair value | 12,807 | 5,961 |
Derivatives Designated as Hedging Instruments | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Fair value | 3,528 | 1,970 |
Derivatives Designated as Hedging Instruments | Interest Rate Contracts | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Notional amount | 150,000 | 150,000 |
Derivatives Designated as Hedging Instruments | Interest Rate Contracts | Other Assets | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Fair value | 3,528 | 1,970 |
Derivatives Not Designated as Hedging Instruments | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Fair value | 12,394 | 5,810 |
Derivative Liabilities, Fair value | 12,807 | 5,961 |
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 | 181,291 | 150,489 |
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 | 12,348 | 5,782 |
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 | 181,291 | 150,489 |
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 | 12,348 | 5,782 |
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 | 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 | 46 | 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 | 78,700 | 63,825 |
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 | $ 459 | $ 179 |
Derivative And Hedging Activi_3
Derivative And Hedging Activites - Summary of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Details) - Cash Flow Hedging - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI | $ 1,647 | $ 1,558 |
Amount of Gain or (Loss) Recognized in OCI Included Component | 2,080 | 2,080 |
Amount of Gain or (Loss) Recognized in OCI Excluded Component | (433) | (522) |
Amount of Gain or (Loss) Reclassified from AOCI into Income | (48) | (96) |
Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component | (48) | (96) |
Interest Income | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Amount of Gain or (Loss) Reclassified from AOCI into Income | (48) | (96) |
Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component | (48) | (96) |
Interest Rate Contracts | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI | 1,647 | 1,558 |
Amount of Gain or (Loss) Recognized in OCI Included Component | 2,080 | 2,080 |
Amount of Gain or (Loss) Recognized in OCI Excluded Component | $ (433) | $ (522) |
Derivative And Hedging Activi_4
Derivative And Hedging Activites - Additional Information (Details) - USD ($) | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Fair value of derivative liability | $ 12,807,000 | $ 5,961,000 | |
Notional amount | 8,500,000 | ||
Minimum | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Minimum collateral posting threshold of derivative counterparties | 8,400,000 | ||
Accrued Interest | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Fair value of derivative liability | $ 8,500,000 | ||
Scenario Forecast | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Estimated amount will be reclassified out of AOCI in to earnings | $ 28,000 |
Derivative And Hedging Activi_5
Derivative And Hedging Activites - Summary of Derivative Financial Instruments Income Statement (Details) - Interest Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Total amount of income presented in the income statement in which the effects of fair value or cash flow hedges are recorded | $ (48) | $ (96) |
Interest Rate Contracts | ||
The effects of fair value and cash flow hedging: | ||
Amount of gain or (loss) reclassed from AOCI into income | (48) | (96) |
Amount of gain or (loss) reclassed from AOCI into income - Excluded Component | $ (48) | $ (96) |
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 | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative | $ (61) | $ 12 | $ 13 | $ 40 |
Other contracts | Other Income | ||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative | $ (61) | $ 12 | $ 13 | $ 40 |
Derivative And Hedging Activi_7
Derivative And Hedging Activites - Schedule of Financial Instruments Eligible for Offset in Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Offsetting [Abstract] | ||
Gross Amounts of Recognized, Derivative assets | $ 15,922 | $ 7,780 |
Net Amounts Recognized, Derivative Assets | 15,922 | 7,780 |
Gross Amounts Not Offset, Financial Instruments, Derivative Assets | 3,663 | 3,099 |
Gross Amounts Not Offset, Collateral Pledged (Received), Derivative Assets | (743) | |
Gross Amounts Not Offset, Net amount, Derivative Assets | 12,259 | 3,938 |
Gross Amounts of Recognized, Derivative Liablities | 12,807 | 5,961 |
Net Amounts Recognized, Derivative Liablities | 12,807 | 5,961 |
Gross Amounts Not Offset, Financial Instruments, Derivative Liablities | 3,663 | 3,099 |
Gross Amounts Not Offset, Collateral Pledged (Received), Derivative Liablities | 8,428 | 260 |
Gross Amounts Not Offset, Net amount, Derivative Liablities | $ 716 | $ 2,602 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Values and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financial assets | ||
Securities available for sale | $ 153,053 | $ 168,163 |
Securities held to maturity | 291,993 | 281,310 |
FHLB Boston stock | 8,245 | 6,844 |
Recurring Basis | Carrying Value | ||
Financial assets | ||
Cash and cash equivalents | 38,557 | 18,473 |
Securities available for sale | 153,053 | 168,163 |
Securities held to maturity | 286,350 | 282,869 |
Loans, net | 2,079,451 | 1,543,004 |
Loans held for sale | 384 | |
FHLB Boston stock | 8,245 | 6,844 |
Accrued interest receivable | 7,485 | 5,762 |
Mortgage servicing rights | 891 | 666 |
Interest rate contracts | 3,528 | 1,970 |
Loan level interest rate swaps | 12,348 | 5,782 |
Risk participation agreements out to counterparties | 46 | 28 |
Financial liabilities | ||
Deposits | 2,329,665 | 1,811,410 |
Short-term borrowings | 103,000 | 90,000 |
Long-term borrowings | 3,323 | 3,409 |
Loan level interest rate swaps | 12,348 | 5,782 |
Risk participation agreements in with counterparties | 459 | 179 |
Recurring Basis | Estimated Fair Value | ||
Financial assets | ||
Cash and cash equivalents | 38,557 | 18,473 |
Securities available for sale | 153,053 | 168,163 |
Securities held to maturity | 291,993 | 281,310 |
Loans, net | 2,036,666 | 1,484,905 |
Loans held for sale | 384 | |
FHLB Boston stock | 8,245 | 6,844 |
Accrued interest receivable | 7,485 | 5,762 |
Mortgage servicing rights | 1,105 | 941 |
Interest rate contracts | 3,528 | 1,970 |
Loan level interest rate swaps | 12,348 | 5,782 |
Risk participation agreements out to counterparties | 46 | 28 |
Financial liabilities | ||
Deposits | 2,328,568 | 1,809,051 |
Short-term borrowings | 103,031 | 90,000 |
Long-term borrowings | 3,316 | 3,363 |
Loan level interest rate swaps | 12,348 | 5,782 |
Risk participation agreements in with counterparties | $ 459 | $ 179 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Certain Assets Reported at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 153,053 | $ 168,163 |
U.S. GSE Obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 49,815 | 74,039 |
Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 4,856 | |
Recurring Basis | U.S. GSE Obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 49,815 | 74,039 |
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 | 49,815 | 74,039 |
Recurring Basis | Mortgage Backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 103,238 | 89,268 |
Recurring Basis | Mortgage Backed Securities | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 103,238 | 89,268 |
Recurring Basis | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 4,856 | |
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 | |
Recurring Basis | Interest Rate Swaps with Customers | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other assets | 12,348 | 5,782 |
Recurring Basis | Interest Rate Swaps with Customers | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other assets | 12,348 | 5,782 |
Recurring Basis | Risk Participation Agreements Out to Counterparties | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other assets | 46 | 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 | 46 | 28 |
Recurring Basis | Interest Rate Contracts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other assets | 3,528 | 1,970 |
Recurring Basis | Interest Rate Contracts | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other assets | 3,528 | 1,970 |
Recurring Basis | Mirror Swaps with Counterparties | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other liabilities | 12,348 | 5,782 |
Recurring Basis | Mirror Swaps with Counterparties | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other liabilities | 12,348 | 5,782 |
Recurring Basis | Risk Participation Agreements in With Counterparties | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other liabilities | 459 | 179 |
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 | $ 459 | $ 179 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Carrying Value of Assets Measured at Fair Value on a Non-Recurring Basis (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | $ 0 | |
Non-recurring | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | $ 569,000 | |
Non-recurring | Loans Held for Sale | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | 384,000 | |
Non-recurring | Other Real Estate Owned | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | 185,000 | |
Level 3 | Non-recurring | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | 569,000 | |
Level 3 | Non-recurring | Loans Held for Sale | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | 384,000 | |
Level 3 | Non-recurring | Other Real Estate Owned | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | $ 185,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |||||
Other real estate owned | $ 185,000 | $ 185,000 | |||
Assets, fair value, non-recurring basis | $ 0 | ||||
Transfers between levels | $ 0 | $ 0 | $ 0 | $ 0 |