Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 12, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CATC | ||
Entity Registrant Name | CAMBRIDGE BANCORP | ||
Entity Central Index Key | 0000711772 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Title of 12(b) Security | Common Stock | ||
Security Exchange Name | NASDAQ | ||
Entity Public Float | $ 361.1 | ||
Entity Common Stock, Shares Outstanding | 5,412,221 | ||
Entity File Number | 001-38184 | ||
Entity Incorporation, State or Country Code | MA | ||
Entity Tax Identification Number | 04-2777442 | ||
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 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of the Registrant’s Definitive Proxy Statement relating to the Annual Meeting of Shareholders, scheduled to be held on May 18, 2020, are incorporated by reference into Part III of this Report. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 61,335,000 | $ 18,473,000 |
Investment securities | ||
Available for sale, at fair value (amortized cost $141,109 and $172,290, respectively) | 140,330,000 | 168,163,000 |
Held to maturity, at amortized cost (fair value $264,114 and $281,310, respectively) | 258,172,000 | 282,869,000 |
Total investment securities | 398,502,000 | 451,032,000 |
Loans held for sale, at lower of cost or fair value | 1,546,000 | |
Loans | ||
Total loans | 2,226,728,000 | 1,559,772,000 |
Less: allowance for loan losses | (18,180,000) | (16,768,000) |
Net loans | 2,208,548,000 | 1,543,004,000 |
Federal Home Loan Bank of Boston Stock, at cost | 7,854,000 | 6,844,000 |
Bank owned life insurance | 37,319,000 | 30,933,000 |
Banking premises and equipment, net | 14,756,000 | 8,578,000 |
Right-of-use asset operating leases | 33,587,000 | |
Deferred income taxes, net | 8,229,000 | 8,717,000 |
Accrued interest receivable | 7,052,000 | 5,762,000 |
Goodwill | 31,206,000 | 412,000 |
Merger related intangibles, net | 3,338,000 | |
Other assets | 42,291,000 | 27,629,000 |
Total assets | 2,855,563,000 | 2,101,384,000 |
Deposits | ||
Demand | 630,593,000 | 494,492,000 |
Interest bearing checking | 450,098,000 | 431,702,000 |
Money market | 181,406,000 | 135,585,000 |
Savings | 914,499,000 | 628,212,000 |
Certificates of deposit | 182,282,000 | 121,419,000 |
Total deposits | 2,358,878,000 | 1,811,410,000 |
Short-term borrowings | 135,691,000 | 90,000,000 |
Long-term borrowings | 3,409,000 | |
Operating lease liabilities | 35,054,000 | |
Other liabilities | 39,379,000 | 29,539,000 |
Total liabilities | 2,569,002,000 | 1,934,358,000 |
Shareholders’ Equity | ||
Common stock, par value $1.00; Authorized 10,000,000 shares; Outstanding: 4,082,188 shares and 4,036,879 shares, respectively | 5,401,000 | 4,107,000 |
Additional paid-in capital | 136,766,000 | 38,271,000 |
Retained earnings | 146,875,000 | 131,135,000 |
Accumulated other comprehensive loss | (2,481,000) | (6,487,000) |
Total shareholders’ equity | 286,561,000 | 167,026,000 |
Total liabilities and shareholders’ equity | 2,855,563,000 | 2,101,384,000 |
Residential Mortgage | ||
Loans | ||
Total loans | 917,566,000 | 604,331,000 |
Commercial Mortgage | ||
Loans | ||
Total loans | 1,060,574,000 | 757,957,000 |
Home Equity | ||
Loans | ||
Total loans | 80,675,000 | 69,336,000 |
Commercial & Industrial | ||
Loans | ||
Total loans | 133,236,000 | 93,712,000 |
Consumer | ||
Loans | ||
Total loans | $ 34,677,000 | $ 34,436,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Available for sale securities, amortized cost | $ 141,109 | $ 172,290 |
Held-to-maturity securities, fair value | $ 264,114 | $ 281,310 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares, outstanding | 5,400,868 | 4,107,051 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest and dividend income | |||
Interest on taxable loans | $ 84,382 | $ 57,941 | $ 51,238 |
Interest on tax-exempt loans | 584 | 371 | 496 |
Interest on taxable investment securities | 7,963 | 7,457 | 6,321 |
Interest on tax-exempt investment securities | 2,289 | 2,404 | 2,600 |
Dividends on FHLB of Boston stock | 390 | 287 | 245 |
Interest on overnight investments | 731 | 595 | 291 |
Total interest and dividend income | 96,339 | 69,055 | 61,191 |
Interest expense | |||
Interest on deposits | 15,641 | 5,023 | 3,125 |
Interest on borrowed funds | 2,002 | 444 | 462 |
Total interest expense | 17,643 | 5,467 | 3,587 |
Net interest and dividend income | 78,696 | 63,588 | 57,604 |
Provision for Loan Losses | 3,004 | 1,502 | 362 |
Net interest and dividend income after provision for loan losses | 75,692 | 62,086 | 57,242 |
Noninterest income | |||
Bank owned life insurance income | 612 | 526 | 584 |
Gain (loss) on disposition of investment securities | (79) | 2 | (3) |
Gain on loans sold | 1,170 | 99 | 355 |
Loan related derivative income | 1,674 | 1,651 | 780 |
Other income | 1,927 | 1,269 | 1,155 |
Total noninterest income | 36,401 | 32,989 | 30,224 |
Noninterest expense | |||
Salaries and employee benefits | 47,494 | 41,212 | 36,455 |
Occupancy and equipment | 10,855 | 9,072 | 9,114 |
Data processing | 6,232 | 5,177 | 4,956 |
Professional services | 3,623 | 3,258 | 3,374 |
Marketing | 1,760 | 2,229 | 1,620 |
FDIC insurance | 291 | 574 | 629 |
Nonoperating expenses | 4,721 | 201 | |
Other expenses | 3,199 | 2,264 | 3,144 |
Total noninterest expense | 78,175 | 63,987 | 59,292 |
Income before income taxes | 33,918 | 31,088 | 28,174 |
Income tax expense | 8,661 | 7,207 | 13,358 |
Net income | $ 25,257 | $ 23,881 | $ 14,816 |
Share data: | |||
Weighted average number of shares outstanding, basic | 4,629,255 | 4,061,529 | 4,030,530 |
Weighted average number of shares outstanding, diluted | 4,661,720 | 4,098,633 | 4,065,754 |
Basic earnings per share | $ 5.41 | $ 5.82 | $ 3.64 |
Diluted earnings per share | $ 5.37 | $ 5.77 | $ 3.61 |
Wealth Management Revenue | |||
Noninterest income | |||
Noninterest income | $ 26,499 | $ 25,191 | $ 23,029 |
Deposit Account Fees | |||
Noninterest income | |||
Noninterest income | 3,185 | 3,071 | 3,142 |
ATM/Debit Card Income | |||
Noninterest income | |||
Noninterest income | $ 1,413 | $ 1,180 | $ 1,182 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 25,257 | $ 23,881 | $ 14,816 |
Unrealized gains/(losses) on available for sale securities | |||
Unrealized holding gains/(losses) arising during period | 2,500 | (242) | 128 |
Less: reclassification adjustment for losses/(gains) included in net income | 62 | (2) | 1 |
Total unrealized gains/(losses) on securities | 2,562 | (244) | 129 |
Derivatives | |||
Change in interest rate contracts | 821 | 751 | |
Defined benefit retirement plans | |||
Change in retirement liabilities | 623 | 89 | 3,871 |
Other comprehensive income/(loss) | 4,006 | 596 | 4,000 |
Comprehensive income | $ 29,263 | $ 24,477 | $ 18,816 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income |
Beginning balance at Dec. 31, 2016 | $ 134,671 | $ 4,037 | $ 33,253 | $ 107,262 | $ (9,881) |
Net income | 14,816 | 14,816 | |||
Other comprehensive income (loss) | 4,000 | 4,000 | |||
Share based compensation | 2,052 | 45 | 2,410 | (403) | |
Dividends declared | (7,582) | (7,582) | |||
Ending balance at Dec. 31, 2017 | 147,957 | 4,082 | 35,663 | 114,093 | (5,881) |
Cumulative effect of accounting changes | 1,202 | (1,202) | |||
Net income | 23,881 | 23,881 | |||
Other comprehensive income (loss) | 596 | 596 | |||
Share based compensation | 2,633 | 25 | 2,608 | ||
Dividends declared | (8,041) | (8,041) | |||
Ending balance at Dec. 31, 2018 | 167,026 | 4,107 | 38,271 | 131,135 | (6,487) |
Net income | 25,257 | 25,257 | |||
Other comprehensive income (loss) | 4,006 | 4,006 | |||
Share based compensation | 2,170 | 20 | 2,150 | ||
Dividends declared | (9,517) | (9,517) | |||
Common stock issued for merger | 59,417 | 723 | 58,694 | ||
Common stock offering | 38,202 | 551 | 37,651 | ||
Ending balance at Dec. 31, 2019 | $ 286,561 | $ 5,401 | $ 136,766 | $ 146,875 | $ (2,481) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retained Earnings | |||
Dividends declared, per share | $ 2.04 | $ 1.96 | $ 1.86 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 25,257 | $ 23,881 | $ 14,816 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 3,004 | 1,502 | 362 |
Amortization of deferred charges and fees, net | 166 | 777 | 972 |
Net (Accretion)/Amortization of merger-related intangibles | (1,176) | ||
Depreciation and amortization | 2,004 | 1,888 | 1,948 |
Bank owned life insurance income | (612) | (526) | (584) |
Loss/(gain) on disposition of investment securities | 79 | (2) | 3 |
Share based compensation | 2,170 | 2,633 | 2,052 |
Change in accrued interest receivable | (162) | (634) | (501) |
Deferred income tax expense/(benefit) | 110 | (721) | 2,687 |
Change in other assets, net | (11,667) | (12,231) | (758) |
Change in other liabilities, net | 11,166 | 7,455 | 2,264 |
Change in loans held for sale | (1,546) | 6,506 | |
Net cash provided by operating activities | 28,793 | 24,022 | 29,767 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Origination of loans | (790,097) | (596,259) | (354,657) |
Proceeds from principal payments of loans | 524,907 | 387,537 | 323,632 |
Proceeds from principal loan pool sales | 74,412 | ||
Purchase of securities available for sale | (23,450) | (5,091) | |
Proceeds from calls/maturities of securities available for sale | 49,832 | 35,415 | 47,955 |
Proceeds from sales of securities available for sale and held to maturity | 26,552 | 702 | 77,369 |
Proceeds from calls/maturities of securities held to maturity | 72,655 | 33,064 | 34,488 |
Purchase of securities held to maturity | (48,906) | (84,261) | (184,505) |
Proceeds from settlement of bank owned life insurance policies | 676 | ||
Redemption/(purchase) of FHLB of Boston stock | 456 | (2,602) | (144) |
Purchase of banking premises and equipment | (1,896) | (1,155) | (807) |
Net cash acquired in business combinations | 2,063 | ||
Net cash (used in) provided by investing activities | (113,472) | (226,883) | (61,760) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Change in demand, interest bearing, money market and savings accounts | 171,961 | 74,421 | 100,694 |
Change in certificates of deposit | (101,928) | (38,467) | (11,411) |
Change in borrowings | 28,823 | 89,830 | (167) |
Proceeds from common stock offering (net of underwriting fees) | 38,202 | ||
Cash dividends paid on common stock | (9,517) | (8,041) | (7,582) |
Net cash provided by (used in) financing activities | 127,541 | 117,743 | 81,534 |
Net (decrease)/increase in cash and cash equivalents | 42,862 | (85,118) | 49,541 |
Cash and cash equivalents at beginning of period | 18,473 | 103,591 | 54,050 |
Cash and cash equivalents at end of period | 61,335 | 18,473 | 103,591 |
Cash paid during the period for: | |||
Interest | 17,918 | 5,457 | 3,579 |
Income taxes | 7,770 | $ 8,330 | $ 10,100 |
Significant non-cash transactions | |||
Right-of-use assets for lessee operating leases | 33,587 | ||
Right-of-use liabilities for lessee operating leases | 35,054 | ||
Transfer of other real estate owned | 163 | ||
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 |
The Business
The Business | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
The Business | 1. THE BUSINESS The accompanying consolidated financial statements include the accounts of Cambridge Bancorp (the “Company”) and its wholly-owned subsidiary, Cambridge Trust Company (the “Bank”), and the Bank’s subsidiaries, Cambridge Trust Company of New Hampshire, Inc., CTC Security Corporation, and CTC Security Corporation III. References to the Company herein relate to the consolidated group of companies. All significant intercompany accounts and transactions have been eliminated in preparation of the consolidated financial statements. The Company is a state-chartered, federally registered bank holding company headquartered in Cambridge, Massachusetts, incorporated in 1983. The Company is the sole shareholder of the Bank, a Massachusetts trust company chartered in 1890 which is a commercial bank. We are a private bank offering a full range of private banking and wealth management services to our clients. The private banking business, the Company’s only reportable operating segment, is managed as a single strategic unit. As a private bank, the Company focuses on four core services that center around client needs. The core services include Wealth Management, Commercial Banking, Residential Lending, and Personal Banking. The Bank offers a full range of commercial and consumer banking services through its network of 16 private banking offices in Massachusetts and New Hampshire. The Bank is engaged principally in the business of attracting deposits from the public and investing those deposits. The Bank invests those funds in various types of loans, including residential and commercial real estate, and a variety of commercial and consumer loans. The Bank also invests its deposits and borrowed funds in investment securities and has two wholly-owned Massachusetts security corporations, CTC Security Corporation and CTC Security Corporation III, for this purpose. Deposits at the Bank are insured by the Federal Deposit Insurance Corporation (“FDIC”) for the maximum amount permitted by FDIC Regulations. Trust and investment management services are offered through the Bank’s private banking offices in Massachusetts and New Hampshire, and its wealth management offices located in Boston, Concord, Manchester, and Portsmouth New Hampshire. The Bank also has a non-depository trust company, Cambridge Trust Company of New Hampshire, Inc., which allows non-New Hampshire residents the opportunity to take advantage of the state’s favorable trust laws. The assets held for wealth management clients are not assets of the Bank and, accordingly, are not reflected in the accompanying consolidated balance sheets. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for loan losses and the valuation of deferred tax assets are particularly subject to change. Reclassifications Certain amounts in the prior year’s financial statements may have been reclassified to conform with the current year’s presentation. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, amounts due from banks, and overnight investments. Investment Securities Investment securities are classified as either ‘held to maturity’ or ‘available for sale’ in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 320, “ Investments – Debt and Equity Securities. Debt and equity securities not classified as held to maturity are classified as available for sale and carried at fair value with unrealized after-tax gains and losses reported net as a separate component of shareholders’ equity. The Company classifies its securities based on its intention at the time of purchase. Declines in the fair value of investment securities below their amortized cost that are deemed to be other-than-temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income. In estimating other-than-temporary impairment losses, management considers: (1) the length of time and the extent to which the fair value has been less than cost; (2) the financial condition and near-term prospects of the issuer; and (3) the Company’s intent to sell the security or whether it is more likely than not that the Company will be required to sell the debt security before its anticipated recovery. Loans and the Allowance for Loan Losses Loans are reported at the amount of their outstanding principal, including deferred loan origination fees and costs, reduced by unearned discounts, and the allowance for loan losses. Loan origination fees, net of related direct incremental loan origination costs, are deferred and amortized as an adjustment to yield over the life of the related loans. Unearned discount is recognized as an adjustment to the loan yield, using the interest method over the contractual life of the related loan. When a loan is paid off, the unamortized portion of net fees or unearned discount is recognized as interest income. Loans are considered delinquent when a payment of principal and/or interest becomes past due 30 days following its scheduled payment due date. Loans on which the accrual of interest has been discontinued are designated as non-accrual loans. Accrual of interest income is discontinued when concern exists as to the collectability of principal or interest or typically when a loan becomes over 90 days delinquent. Additionally, when a loan is placed on non-accrual status, all interest previously accrued but not collected is reversed against current period income. Loans are removed from non-accrual when they become less than 90 days past due and when concern no longer exists as to the collectability of principal or interest. Interest collected on non-accruing loans is either applied against principal or reported as income according to management’s judgment as to the collectability of principal. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Under certain circumstances, the Company may restructure the terms of a loan as a concession to a borrower. These restructured loans are generally also considered impaired loans. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. The provision for loan losses and the level of the allowance for loan losses reflects management’s estimate of probable loan losses inherent in the loan portfolio at the balance sheet date. Management uses a systematic process and methodology to establish the allowance for loan losses each quarter. To determine the total allowance for loan losses, an estimate is made by management of the allowance needed for each of the following segments of the loan portfolio: (a) residential mortgage loans, (b) commercial mortgage loans, (c) home equity loans, (d) commercial & industrial loans, and (e) consumer loans. Portfolio segments are further disaggregated into classes of loans. The establishment of the allowance for each portfolio segment is based on a process that evaluates the risk characteristics relevant to each portfolio segment and takes into consideration multiple internal and external factors. Internal factors include, but are not limited to, (a) historic levels and trends in charge-offs, delinquencies, risk ratings, and foreclosures, (b) level and changes in industry, geographic, and credit concentrations, (c) underwriting policies and adherence to such policies, (d) the growth and vintage of the portfolios, and (e) the experience of, and any changes in, lending and credit personnel. External factors include, but are not limited to, (a) conditions and trends in the local and national economy and (b) levels and trends in national delinquent and non-performing loans. The Bank evaluates certain loans individually for specific impairment. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Loans are selected for evaluation based upon internal risk rating, delinquency status, or non-accrual status. A specific allowance amount is allocated to an individual loan when such loan has been deemed impaired and when the amount of the probable loss is able to be estimated. Estimates of loss may be determined by the present value of anticipated future cash flows, the loan’s observable fair market value, or the fair value of the collateral, if the loan is collateral dependent. Risk characteristics relevant to each portfolio segment are as follows: Residential mortgage and home equity loans – The Bank generally does not originate loans in these segments with a loan-to-value ratio greater than 80%, unless covered by private mortgage insurance, and in all cases not greater than a loan-to-value ratio of 97%. The Bank does not originate subprime loans. Loans in these segments are secured by one-to-four family residential real estate, and repayment is primarily dependent on the credit quality of the individual borrower. Commercial mortgage loans – This includes multi-family properties and construction. The Bank generally does not originate loans in this segment with a loan-to-value ratio greater than 75% . Loans in this segment are secured by owner-occupied and nonowner-occupied commercial real estate, and repayment is primarily dependent on the cash flows of the property (if nonowner-occupied) or of the business (if owner-occupied). Commercial loans – Loans in this segment are made to businesses and are generally secured by equipment, accounts receivable, or inventory, as well as the personal guarantees of the principal owners of the business, and repayment is primarily dependent on the cash flows generated by the business. Consumer loans – Loans in this segment are made to individuals and can be secured or unsecured. Repayment is primarily dependent on the credit quality of the individual borrower. The majority of the Bank’s loans are concentrated in Eastern Massachusetts and New Hampshire and therefore the overall health of the local economy, including unemployment rates, vacancy rates, and consumer spending levels, can have a material effect on the credit quality of all of these portfolio segments. The process to determine the allowance for loan losses requires management to exercise considerable judgment regarding the risk characteristics of the loan portfolio segments and the effect of relevant internal and external factors. The provision for loan losses charged to income is based on management’s judgment of the amount necessary to maintain the allowance at a level to provide for probable inherent loan losses as of the evaluation date. When management believes that the collectability of a loan’s principal balance, or portions thereof, is unlikely, the principal amount is charged against the allowance for loan losses. Recoveries on loans that have been previously charged off are credited to the allowance for loan losses as received. The allowance is an estimate, and ultimate losses may vary from current estimates. As adjustments become necessary, they are reported in the results of operations through the provision for loan losses in the period in which they become known. Residential mortgage loans originated and intended for sale in the secondary market are classified as held for sale at the time of their origination and are carried at the lower of cost or fair value on an individual loan basis. Changes in fair value relating to loans held for sale below the loans cost basis are charged against gain on loans held for sale. Gains and losses on the actual sale of the residential loans are recorded in earnings as net gains (losses) on loans held for sale on the consolidated statements of income. Bank Owned Life Insurance Bank owned life insurance (“BOLI”) represents life insurance on the lives of certain active and former employees who have provided positive consent allowing the Bank to be the beneficiary of such policies. Since the Bank is the primary beneficiary of the insurance policies, increases in the cash value of the policies, as well as insurance proceeds received, are recorded in other noninterest income, and are not subject to income taxes. Applicable regulations generally limit our investment in bank-owned life insurance to 25% of our Tier 1 capital plus our allowance for loan losses. The Bank reviews the financial strength of the insurance carriers prior to the purchase of BOLI and at least annually thereafter. Banking Premises and Equipment Land is stated at cost. Buildings, leasehold improvements, and equipment are stated at cost, less accumulated depreciation and amortization, which is computed using the straight-line method over the estimated useful lives of the assets or the terms of the leases, if shorter. The cost of ordinary maintenance and repairs is charged to expense when incurred. Leases The Company leases office space, certain branch locations under noncancelable operating leases, and an ATM location, several of which have renewal options to extend lease terms. Upon commencement of a new lease, the Company will recognize a right of use ("ROU") asset and corresponding lease liability. The Company makes the decision on whether to renew an option to extend a lease by Marketing Expense Advertising costs are expensed as incurred. Other Real Estate Owned Other real estate owned (“OREO”) consists of properties formerly pledged as collateral to loans, which have been acquired by the Bank through foreclosure proceedings or acceptance of a deed in lieu of foreclosure. Upon transfer of a loan to foreclosure status, an appraisal is obtained and any excess of the loan balance over the fair value, less estimated costs to sell, is charged against the allowance for loan losses. Expenses and subsequent adjustments to the fair value are treated as other operating expense. Goodwill, Core Deposit Intangibles, and Other Intangible Assets Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. Core deposit intangible represents a premium paid to acquire the core deposits of an institution and is recorded as an intangible asset. Goodwill and intangible assets that are not amortized are tested for impairment, based on their fair values, at least annually. Identifiable intangible assets that are subject to amortization are also reviewed for impairment based on their fair value. Any impairment is recognized as a charge to earnings and the adjusted carrying amount of the intangible asset becomes its new accounting basis. The remaining useful life of an intangible asset that is being amortized is also evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. Mortgage servicing assets are recognized as separate assets when rights are acquired through purchase or through sale of financial assets with servicing rights retained. The fair value of the servicing rights is determined by estimating the present value of future net cash flows, taking into consideration market loan prepayment speeds, discount rates, servicing costs, and other economic factors. For purposes of measuring impairment, the underlying loans are stratified into relatively homogeneous pools based on predominant risk characteristics which include product type (i.e., fixed or adjustable) and interest rate bands. If the aggregate carrying value of the capitalized mortgage servicing rights for a stratum exceeds its fair value, MSR impairment is recognized in earnings through a valuation allowance for the difference. As the loans are repaid and net servicing revenue is earned, the MSR asset is amortized as an offset to loan servicing income. Servicing revenues are expected to exceed this amortization expense. However, if actual prepayment experience or defaults exceed what was originally anticipated, net servicing revenues may be less than expected and mortgage servicing rights may be impaired. Income Taxes The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, the Commonwealth of Massachusetts, the state of New Hampshire, and other states as required. For the year 2019, the Company will file taxes in Massachusetts, New Hampshire, and Maine. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Deferred tax assets are reviewed quarterly and reduced by a valuation allowance if, based upon the information available, it is more likely than not that some or all of the deferred tax assets will not be realized. Interest and penalties related to unrecognized tax benefits, if incurred, are recognized as a component of income tax expense. The Tax Cuts and Jobs Act of 2017 was enacted on December 22, 2017. Effective in 2018, the change in tax law reduced the Company’s statutory federal tax rate from 35% to 21%. The Company recorded a one-time non-cash write-down of net deferred tax assets of $3.9 million as these deferred tax assets were required to be re-measured using the new lower tax rate in 2017. Fee Revenue Wealth management revenues include asset-based revenues (trust and investment advisory fees) that are primarily accrued as earned based upon a percentage of asset values under management, or administration. Also included in wealth management revenues are transaction-based revenues (financial planning fees and other service fees), which are recognized as revenue to the extent that services have been completed. Fee revenue from deposit service charges is generally recognized when earned. Pension and Retirement Plans The Company sponsored a defined benefit pension plan (the “Pension Plan”) and a postretirement health care plan covering substantially all employees hired before May 2, 2011. On October 23, 2017, the Company announced its decision to freeze the accrual of benefits for all participants in the Pension Plan, effective as of December 31, 2017. Benefits for the Pension Plan were based primarily on years of service and the employee’s average monthly pay during the five highest consecutive plan years of the employee’s final 10 years. Benefits for the postretirement health care plan are based on years of service. Expense for both of these plans is recognized over the employee’s service life utilizing the projected unit credit actuarial cost method. The Company also sponsors non-qualified retirement programs that provide supplemental retirement benefits to certain current and former executives. Prior to 2016, the Company provided individual non-qualified defined benefit supplemental executive retirement plans (“DB SERPs”) to certain executives. The DB SERPs generally provide for an annual benefit payable in equal monthly installments following the executive’s retirement and continuing for at least the remainder of his or her lifetime, with such annual benefit generally based on the executive’s years of service and his or her highest three consecutive years of base salary and bonus. In 2016, the Company’s Board discontinued the use of DB SERPs for new entrants to the Company’s non-qualified retirement programs. Instead, new entrants are provided with individual non-qualified defined contribution supplemental executive retirement plans (“DC SERPs”). Under the DC SERPs, the Company may contribute an amount equal to 10% of the executive’s base salary and bonus to his or her account under the Company’s non-qualified deferred compensation plan, the Executive Deferred Compensation Plan. Expense for the DB SERPs is recognized over the executive’s service life utilizing the projected unit credit actuarial cost method. Expense for the DC SERPs is recognized as incurred. The Company maintains a Profit Sharing Plan (“PSP”) that provides for deferral of federal and state income taxes on employee contributions allowed under Section 401(k) of federal law. Beginning in 2018, the Company matched employee contributions up to 100% of the first 4% of each participant’s salary, , up from 3% in 2017. Each year, the Company may also make a discretionary contribution to the PSP of up to 4% salary, eligible bonus and eligible incentive. Share-Based Compensation Share-based compensation plans provide for stock option awards, restricted stock awards, nonvested time based share units, and nonvested performance based share units. Compensation expense for nonvested restricted stock awards is recognized over the service period based on the fair value at the date of grant. Awards of nonvested time based share units and nonvested performance share units are valued at the fair market value of the Company’s common stock as of the award date. Nonvested performance share unit compensation expense is based on the most recent performance assumption available and is adjusted as assumptions change. If the goals are not met, vesting does not occur and no compensation cost will be recognized and any recognized compensation costs will be reversed. Stock-based awards that do not require future service are expensed in the year of grant. Derivative Instruments and Hedging Activities Derivatives are recognized as either assets or liabilities on the balance sheet and are measured at fair value. The accounting for changes in the fair value of such derivatives depends on the intended use of the derivative and resulting designation. For derivatives not designated as hedges, changes in fair value of the derivative instruments are recognized in earnings in noninterest income. For derivatives designated as fair value hedges, changes in the fair value of such derivatives are recognized in earnings together with the changes in the fair value of the related hedged item. The net amount, if any, represents hedge ineffectiveness and is reflected in earnings. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is recorded in other comprehensive income (loss) and recognized in earnings when the hedged transaction affects earnings. The ineffective portion of changes in the fair value of cash flow hedges is recognized directly in earnings. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company measures the fair values of its financial instruments in accordance with accounting guidance that requires an entity to base fair value on exit price and maximize the use of observable inputs and minimize the use of unobservable inputs to determine the exit price. ASC 820, “ Fair Value Measurements and Disclosures” Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The type of financial instruments included in Level 1 are highly liquid cash instruments with quoted prices such as government or agency securities, listed equities and money market securities, as well as listed derivative instruments. Level 2 – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these financial instruments includes cash instruments for which quoted prices are available but traded less frequently, derivative instruments whose fair value has been derived using a model where inputs to the model are directly observable in the market, or can be derived principally from or corroborated by observable market data, and instruments that are fair valued using other financial instruments, the parameters of which can be directly observed. Instruments which are generally included in this category are corporate bonds and loans, mortgage whole loans, municipal bonds and over-the-counter derivatives. Level 3 – Instruments that have little to no pricing observability as of the reported date. These financial instruments do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment to estimation. Instruments that are included in this category generally include certain commercial mortgage loans, certain private equity investments, distressed debt, non-investment grade residual interests in securitizations, as well as certain highly structured over-the-counter derivative contracts. Earnings per Common Share Earnings per common share is computed using the two-class method prescribed under ASC Topic 260, “Earnings Per Share.” ASC Topic 260 provides that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. We have determined that our outstanding non-vested stock awards are participating securities. Under the two-class method, basic earnings per common share is computed by dividing net earnings allocated to common stock by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of common stock equivalents. A reconciliation of the weighted-average shares used in calculating basic earnings per common share and the weighted average common shares used in calculating diluted earnings per common share for the reported periods is provided in Note 22 - Earnings Per Share. Subsequent Events Management has reviewed events occurring through March 16, 2020, the date the consolidated financial statements were issued and determined that no subsequent events occurred requiring adjustment to or disclosure in these financial statements. |
Recently Issued and Adopted Acc
Recently Issued and Adopted Accounting Standards | 12 Months Ended |
Dec. 31, 2019 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recently Issued and Adopted Accounting Standards | 3. Recently Issued and Adopted Accounting Standards Accounting Standards Update 2018-16 - Inclusion of the Secured Overnight Financing Rate (“SOFR”) Overnight Index Swap (“OIS”) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes 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 23 – DERIVATIVE AND HEDGING ACTIVITIES Accounting Standards Update No. 2016-02 - Leases Targeted Improvements See note 17 – commitments and contingencies. Accounting Standards Update No. 2014-09 - Revenue from Contracts with Customers 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 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
Mergers | 12 Months Ended |
Dec. 31, 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, 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 consideration for the transaction structured as 95% common stock and 5% cash. As a result of the merger with Optima, former Optima shareholders received an aggregate of 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 with Optima using the acquisition method pursuant to the Business Combinations Topic of the FASB’s Accounting Standards Codification (“ASC”). Accordingly, for the year ended December 31, 2019 and 2018, the Company recorded merger expenses of $3.9 million and $201,000 related to the merger with Optima. 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 accreted/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. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 5. CASH AND CASH EQUIVALENT At December 31, 2019 and December 31, 2018, cash and due from banks totaled $61.3 million and $18.5 million |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | 6. INVESTMENT SECURITIES Investment securities have been classified in the accompanying consolidated balance sheets according to management’s intent. The carrying amounts of securities and their approximate fair values were as follows: December 31, 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 $ 38,000 $ — $ (152 ) $ 37,848 $ 75,004 $ — $ (965 ) $ 74,039 Mortgage-backed securities 103,109 231 (858 ) 102,482 92,271 118 (3,121 ) 89,268 Corporate debt securities — — — — 5,015 — (159 ) 4,856 Total available for sale securities $ 141,109 $ 231 $ (1,010 ) $ 140,330 $ 172,290 $ 118 $ (4,245 ) $ 168,163 Held to maturity securities U.S. GSE obligations $ 5,000 $ — — $ 5,000 $ 32,571 $ — $ (238 ) $ 32,333 Mortgage-backed securities 161,759 2,751 (111 ) 164,399 168,118 134 (2,290 ) 165,962 Corporate debt securities 6,980 116 — 7,096 6,972 — (107 ) 6,865 Municipal securities 84,433 3,252 (66 ) 87,619 75,208 1,297 (355 ) 76,150 Total held to maturity securities $ 258,172 $ 6,119 $ (177 ) $ 264,114 $ 282,869 $ 1,431 $ (2,990 ) $ 281,310 Total $ 399,281 $ 6,350 $ (1,187 ) $ 404,444 $ 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 amortized cost and fair value of debt investments, aggregated by contractual maturity, are shown below. Maturities of mortgage-backed securities do not take into consideration scheduled amortization or prepayments. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Within One Year After One, But Within Five Years After Five, But Within Ten Years After Ten Years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value At December 31, 2019 (dollars in thousands) Available for sale securities U.S. GSE obligations $ 5,000 $ 4,997 $ 20,000 $ 19,939 $ 5,000 $ 4,934 $ 8,000 $ 7,978 $ 38,000 $ 37,848 Mortgage-backed securities — — 37 38 36,393 35,997 66,679 66,447 103,109 102,482 Corporate debt securities — — — — — — — — — — Total available for sale securities $ 5,000 $ 4,997 $ 20,037 $ 19,977 $ 41,393 $ 40,931 $ 74,679 $ 74,425 $ 141,109 $ 140,330 Held to maturity securities U.S. GSE obligations $ 5,000 $ 5,000 $ — $ — $ — $ — $ — $ — $ 5,000 $ 5,000 Mortgage-backed securities — — 2 2 48,088 49,117 113,669 115,280 161,759 164,399 Corporate debt securities — — 6,980 7,096 — — — — 6,980 7,096 Municipal securities 3,270 3,291 10,606 10,902 45,201 47,523 25,356 25,903 84,433 87,619 Total held to maturity securities $ 8,270 $ 8,291 $ 17,588 $ 18,000 $ 93,289 $ 96,640 $ 139,025 $ 141,183 $ 258,172 $ 264,114 Total $ 13,270 $ 13,288 $ 37,625 $ 37,977 $ 134,682 $ 137,571 $ 213,704 $ 215,608 $ 399,281 $ 404,444 The following tables show the Company’s securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position: December 31, 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 $ 12,912 $ (88 ) $ 24,936 $ (64 ) $ 37,848 $ (152 ) Mortgage-backed securities 33,381 (265 ) 50,766 (593 ) 84,147 (858 ) Corporate debt securities — — — — — — Total available for sale securities $ 46,293 $ (353 ) $ 75,702 $ (657 ) $ 121,995 $ (1,010 ) Held to maturity securities U.S. GSE obligations $ — $ — $ 5,000 $ — $ 5,000 $ — Mortgage-backed securities 14,838 (27 ) 12,928 (84 ) 27,766 (111 ) Corporate debt securities — — — — — — Municipal securities 4,934 (66 ) — — 4,934 (66 ) Total held to maturity securities $ 19,772 $ (93 ) $ 17,928 $ (84 ) $ 37,700 $ (177 ) Total temporarily impaired securities $ 66,065 $ (446 ) $ 93,630 $ (741 ) $ 159,695 $ (1,187 ) 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 ) Securities are evaluated by management for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. Consideration is given to: (1) the length of time and the extent to which the fair value has been less than cost; (2) the financial condition and near-term prospects of the issuer; and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. As of December 31, 2019, 68 debt securities had gross unrealized losses, with an aggregate depreciation of 0.74% from the Company’s amortized cost basis. The largest unrealized loss percentage of any single security was 3.15%, or $63,000, of its amortized cost. The largest unrealized dollar loss of any single security was $96,000, or 1.93%, 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 following table sets forth information regarding sales of investment securities and the resulting gains or losses from such sales: For the Year Ended December 31, 2019 2018 2017 (dollars in thousands) Amortized cost of securities sold $ 26,631 $ 700 $ 77,372 Gain/(loss) realized on securities sold (79 ) 2 (3 ) Net proceeds from securities sold $ 26,552 $ 702 $ 77,369 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | 7. LOANS AND ALLOWANCE FOR LOAN LOSSES The Company’s lending activities are conducted primarily in Eastern Massachusetts. The Company grants single- and multi-family residential loans, commercial & industrial (“C&I”), commercial real estate (“CRE”), construction loans, and a variety of consumer loans. Most of the loans granted by the Company are secured by real estate collateral. Repayment of the Company’s residential loans are generally dependent on the health of the employment market in the borrowers’ geographic areas and that of the general economy with liquidation of the underlying real estate collateral being typically viewed as the primary source of repayment in the event of borrower default. The repayment of C&I loans depends primarily on the cash flow and credit worthiness of the borrower and secondarily on the underlying collateral provided by the borrower. As borrower cash flow may be difficult to predict, liquidation of the underlying collateral securing these loans is typically viewed as the primary source of repayment in the event of borrower default. However, collateral typically consists of equipment, inventory, accounts receivable, or other business assets that may fluctuate in value, so the liquidation of collateral in the event of default is often an insufficient source of repayment. The Company’s CRE loans are primarily made based on the cash flow from the collateral property and secondarily on the underlying collateral provided by the borrower, with liquidation of the underlying real estate collateral typically being viewed as the primary source of repayment in the event of borrower default. The Company’s construction loans are primarily made based on the borrower’s expected ability to execute and the future completed value of the collateral property, with sale of the underlying real estate collateral typically being viewed as the primary source of repayment. Loans outstanding are detailed by category as follows: December 31, 2019 December 31, 2018 (dollars in thousands) Residential mortgage Mortgages - fixed rate $ 430,877 $ 293,267 Mortgages - adjustable rate 467,139 309,656 Construction 17,374 — Deferred costs net of unearned fees 2,176 1,408 Total residential mortgages 917,566 604,331 Commercial mortgage Mortgages - nonowner occupied 870,047 654,394 Mortgages - owner occupied 114,095 59,335 Construction 76,288 44,146 Deferred costs net of unearned fees 144 82 Total commercial mortgages 1,060,574 757,957 Home equity Home equity - lines of credit 73,880 63,421 Home equity - term loans 6,555 5,665 Deferred costs net of unearned fees 240 250 Total home equity 80,675 69,336 Commercial & industrial Commercial & industrial 133,337 93,728 Deferred costs (fees) net of unearned fees (101 ) (16 ) Total commercial & industrial 133,236 93,712 Consumer Secured 33,453 33,252 Unsecured 1,199 1,171 Deferred costs net of unearned fees 25 13 Total consumer 34,677 34,436 Total loans $ 2,226,728 $ 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 December 31, 2019 and December 31, 2018, total loans outstanding to such directors and officers were $3,000 and $488,000, respectively. During the year ended December 31, 2019, $85,000 of additions and $570,000 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 December 31, 2019 and 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: December 31, 2019 . Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Total (dollars in thousands) Non-performing loans: Non-accrual loans $ 1,298 $ 2,800 $ 12 $ 50 $ — $ 4,160 Loans past due >90 days, but still accruing 527 486 — 251 — 1,264 Troubled debt restructurings 99 — — 128 — 227 Total $ 1,924 $ 3,286 $ 12 $ 429 $ — $ 5,651 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. During the year ended December 31, 2019, the Company modified one loan with a carrying value of $128,000. At December 31, 2019, three loans were determined to be TDRs with a total carrying value of $227,000. One TDR loan was paid off during the first quarter of 2019. There were no TDR defaults during the year ended December 31, 2019 . As of 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. The allowance for loan losses includes a specific reserve for these TDRs of approximately $87,000 as of December 31, 2019. There were no specific reserves for the troubled debt restructurings at December 31, 2018 . As of December 31, 2019 and 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: December 31, 2019 Residential Mortgages Home Equity Consumer (dollars in thousands) Credit risk profile based on payment activity: Performing $ 915,642 $ 80,663 $ 34,677 Non-performing 1,924 12 — Total $ 917,566 $ 80,675 $ 34,677 Commercial Mortgages Commercial & Industrial Credit risk profile by internally assigned grade: 1-6 (Pass) $ 1,050,037 $ 123,900 7 (Special Mention) 7,360 4,289 8 (Substandard) 3,177 5,047 9 (Doubtful) — — 10 (Loss) — — Total $ 1,060,574 $ 133,236 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: December 31, 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 $ 8,710 $ 1,089 $ 1,047 $ 10,846 $ 906,720 $ 917,566 Commercial Mortgages 811 — 3,161 3,972 1,056,602 1,060,574 Home Equity 57 12 — 69 80,606 80,675 Commercial & Industrial 272 226 251 749 132,487 133,236 Consumer loans 4 5 — 9 34,668 34,677 Total $ 9,854 $ 1,332 $ 4,459 $ 15,645 $ 2,211,083 $ 2,226,728 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 December 31, 2019. Foreclosure Proceedings Other Real Estate Owned (“OREO”) As of December 31, 2019, the Company recorded other real estate owned assets of $163,000. 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 December 31, 2019 and 2018 loans secured by one- to four-family residential property amounting to $344,000 and $351,000, respectively, were 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 is information pertaining to impaired loans: For the Year Ended December 31, 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 3,161 1,385 4,376 — 35 Residential mortgage 765 691 940 — 5 Home equity 93 96 133 — 1 Total 4,019 2,172 5,449 — 41 With required reserve recorded: Commercial and industrial 128 59 167 87 — Commercial mortgage — — — — — Residential mortgage — — — — — Home equity — — — — — Total 128 59 167 87 — Total: Commercial and industrial 128 59 167 87 — Commercial mortgage 3,161 1,385 4,376 — 35 Residential mortgage 765 691 940 — 5 Home equity 93 96 133 — 1 Total $ 4,147 $ 2,231 $ 5,616 $ 87 $ 41 For the Year Ended December 31, 2018 Carrying Value Average Carrying Value Unpaid Principal Balance Related Allowance Interest Income Recognized (dollars in thousands) With no required reserve recorded: Commercial and industrial $ 6 $ 17 $ 6 $ — $ 1 Commercial mortgage — — — — — Residential mortgage 634 647 786 — 4 Home equity 100 104 135 — 1 Total 740 768 927 — 6 With required reserve recorded: Commercial and industrial — — — — — Commercial mortgage — — — — — Residential mortgage — — — — — Home equity — — — — — Total — — — — — Total: Commercial and industrial 6 17 6 — 1 Commercial mortgage — — — — — Residential mortgage 634 647 786 — 4 Home equity 100 104 135 — 1 Total $ 740 $ 768 $ 927 $ — $ 6 For the Year Ended December 31, 2017 Carrying Value Average Carrying Value Unpaid Principal Balance Related Allowance Interest Income Recognized (dollars in thousands) With no required reserve recorded: Commercial and industrial $ 29 $ 36 $ 29 $ — $ 2 Commercial mortgage 213 224 227 — 3 Residential mortgage 904 931 1,103 — — Home equity 86 91 116 — — Total 1,232 1,282 1,475 — 5 With required reserve recorded: Commercial and industrial — — — — — Commercial mortgage — — — — — Residential mortgage 64 66 64 93 1 Home equity — — — — — Total 64 66 64 93 1 Total: Commercial and industrial 29 36 29 — 2 Commercial mortgage 213 224 227 — 3 Residential mortgage 968 997 1,167 93 1 Home equity 86 91 116 — — Total $ 1,296 $ 1,348 $ 1,539 $ 93 $ 6 Allowance for Loan Losses The Company maintains an allowance for loan losses in an amount determined by management on the basis of the character of the loans, loan performance, financial condition of borrowers, the value of collateral securing loans, and other relevant factors. We provide for loan losses based upon the consistent application of our documented allowance for loan loss methodology. All loan losses are charged to the allowance for loan losses and all recoveries are credited to it. Additions to the allowance for loan losses are provided by charges to income based on various factors which, in our judgment, deserve current recognition in estimating probable losses. We regularly review the loan portfolio, including a review of our classified assets, and make provisions for loan losses in order to maintain the allowance for loan losses in accordance with GAAP. The allowance for loan losses consists primarily of two components: 1. Specific allowances established for impaired loans, as defined by GAAP. The amount of impairment provided for as a specific allowance is measured based on the deficiency, if any, between the present value of expected future cash flows discounted at the loan’s effective interest rate at the time of impairment or, as a practical expedient, at the loan’s observable market price, or the fair value of the collateral if the loan is collateral-dependent, and the carrying value of the loan; and 2. General allowances established for loan losses on a portfolio basis for loans that do not meet the definition of impaired loans. The portfolio is grouped into homogenous pools by similar risk characteristics, primarily by loan type and regulatory classification. We apply an estimated incurred loss rate to each loan group. The loss rates applied are based upon our historical loss experience over a designated look back period adjusted, as appropriate, for the quantitative, qualitative, and environmental factors discussed below. This evaluation is inherently subjective, as it requires material estimates that may be susceptible to significant revisions based upon changes in economic and real estate market conditions. Actual loan losses may be significantly more than the allowance for loan losses we have established, which could have a material negative effect on our financial results. The adjustments to historical loss experience are based on our evaluation of several quantitative, qualitative, and environmental factors, including: • the loss emergence period, which represents the average amount of time between when loss events occur for specific loan types and when such problem loans are identified and the related loss amounts are confirmed through charge-offs; • changes in any concentration of credit (including, but not limited to, concentrations by geography, industry, or collateral type); • changes in the number and amount of non-accrual loans and past due loans; • changes in national, state, and local economic trends; • changes in the types of loans in the loan portfolio; • changes in the experience and ability of personnel; • changes in lending strategies; and • changes in lending policies and procedures. In addition, we may establish an unallocated allowance to provide for probable losses that have been incurred as of the reporting date but are not reflected in the allocated allowance. We evaluate the allowance for loan losses based upon the combined total of the specific and general components. Generally, when the loan portfolio increases, absent other factors, the allowance for loan loss methodology results in a higher dollar amount of estimated probable losses than would be the case without the increase. Generally, when the loan portfolio decreases, absent other factors, the allowance for loan losses methodology results in a lower dollar amount of estimated probable losses than would be the case without the decrease. Periodically, management conducts an analysis to estimate the loss emergence period for various loan categories based on samples of historical charge-offs. Model output by loan category is reviewed to evaluate the reasonableness of the reserve levels in comparison to the estimated loss emergence period applied to historical loss experience. We evaluate the loan portfolio on a quarterly basis and the allowance is adjusted accordingly. While we use the best information available to make evaluations, future adjustments to the allowance may be necessary if conditions differ substantially from the information used in making the evaluations. In addition, various regulatory agencies, as an integral part of their examination process, will periodically review the allowance for loan losses. Such agencies may require us to recognize additions to the allowance based on their analysis of information available to them at the time of their examination. The following tables contain changes in the allowance for loan losses disaggregated by loan type for the periods noted: For the Year Ended December 31, 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 — (1,270 ) — (338 ) (48 ) — (1,656 ) Recoveries — — — 53 11 — 64 Provision for (Release of) 195 2,549 (56 ) 258 (29 ) 87 3,004 Balance at December 31, 2019 $ 5,141 $ 10,905 $ 461 $ 1,388 $ 198 $ 87 $ 18,180 For the Year Ended December 31, 2018 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Impaired Total (dollars in thousands) Allowance for loan losses: Balance at December 31, 2017 $ 5,047 $ 8,289 $ 630 $ 946 $ 315 $ 93 $ 15,320 Charge-offs — — — (73 ) (36 ) — (109 ) Recoveries — — — 48 7 — 55 Provision for (Release of) (101 ) 1,337 (113 ) 494 (22 ) (93 ) 1,502 Balance at December 31, 2018 $ 4,946 $ 9,626 $ 517 $ 1,415 $ 264 $ — $ 16,768 For the Year Ended December 31, 2017 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Impaired Total (dollars in thousands) Allowance for loan losses: Balance at December 31, 2016 $ 4,898 $ 8,451 $ 651 $ 807 $ 264 $ 190 $ 15,261 Charge-offs — — — (284 ) (39 ) — (323 ) Recoveries — — — 13 7 — 20 Provision for (Release of) 149 (162 ) (21 ) 410 83 (97 ) 362 Balance at December 31, 2017 $ 5,047 $ 8,289 $ 630 $ 946 $ 315 $ 93 $ 15,320 The following tables contain period-end balances of the allowance for loan losses and related loans receivable disaggregated by impairment method: December 31, 2019 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Total (dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ — $ — $ — $ 87 $ — $ 87 Collectively evaluated for impairment 5,141 10,905 461 1,388 198 18,093 Total $ 5,141 $ 10,905 $ 461 $ 1,475 $ 198 $ 18,180 Loans receivable Individually evaluated for impairment $ 764 $ 3,161 $ 92 $ 128 $ — $ 4,145 Collectively evaluated for impairment 916,802 1,057,413 80,583 133,108 34,677 2,222,583 Total $ 917,566 $ 1,060,574 $ 80,675 $ 133,236 $ 34,677 $ 2,226,728 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 As discussed in Note 2, Summary of Significant Accounting Policies |
Federal Home Loan Bank of Bosto
Federal Home Loan Bank of Boston Stock | 12 Months Ended |
Dec. 31, 2019 | |
Federal Home Loan Bank of Boston | |
Federal Home Loan Bank Stock [Line Items] | |
Federal Home Loan Bank of Boston Stock | 8. FEDERAL HOME LOAN BANK OF BOSTON STOCK As a voluntary member of the FHLB of Boston, the Bank is required to invest in stock of the FHLB of Boston (which is considered a restricted equity security) in an amount based upon its outstanding advances from the FHLB of Boston. At December 31, 2019 and December 31, 2018, the Bank’s investment in FHLB of Boston stock totaled $7.9 million and $6.8 million, respectively. No market exists for shares of this stock. The Bank’s cost for FHLB of Boston stock is equal to its par value. Upon redemption of the stock, which is at the discretion of the FHLB of Boston, the Bank would receive an amount equal to the par value of the stock. At its discretion, the FHLB of Boston may also declare dividends on its stock. The Bank’s investment in FHLB of Boston stock is reviewed for impairment at each reporting date based on the ultimate recoverability of the cost basis of the stock. As of December 31, 2019 and December 31, 2018, no impairment has been recognized. |
Banking Premises and Equipment
Banking Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Banking Premises and Equipment | 9. BANKING PREMISES AND EQUIPMENT A summary of the cost and accumulated depreciation and amortization of property, leasehold improvements, and equipment is presented below: December 31, Estimated 2019 2018 Useful Lives (dollars in thousands) Land $ 1,116 $ 1,116 Building and leasehold improvements 17,817 12,175 3-30 years Equipment, including vaults 13,686 11,613 3-20 years Work in process 550 84 Subtotal 33,169 24,988 Accumulated depreciation and amortization (18,413 ) (16,410 ) Total $ 14,756 $ 8,578 Total depreciation expense for the years ended December 31, 2019, 2018, and 2017 amounted to approximately $2.0 million, $1.9 million and $1.9 million, respectively, and is included in occupancy and equipment expenses in the accompanying consolidated statements of income. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 10. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill. At December 31, 2019 and 2018, the carrying value of goodwill, which is included in other assets, totaled $31.2 million and $412,000, respectively. Goodwill is tested for impairment, based on its fair value, at least annually. As of December 31, 2019 and 2018, no goodwill impairment has been recognized. Core deposit intangibles . The Company recorded an asset for the core deposit intangible (“CDI”) of $3.6 million related to the Optima merger. Amortization of CDI assets totaled $270,000 for the twelve months ended December 31, 2019. As of December 31, 2019, the carrying value of CDI assets totaled $3.3 million . The weighted-average remaining amortization period for CDI was approximately nine years at December 31, 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. The Company sells loans and either releases or retains the servicing rights. For loans sold with servicing rights retained, we provide the servicing for the loans on a per-loan fee basis. Mortgage loans sold and servicing rights retained during the years ended December 31, 2019, 2018, and 2017 were $82.9 million, $1.6 million, and $11.9 million, respectively, with net gains recognized in gain on loan sales of $685,000, $36,000, and $182,000, respectively. An analysis of mortgage servicing rights, which are included in other assets, follows: Mortgage Servicing Rights Valuation Allowance Total (dollars in thousands) Balance at December 31, 2016 $ 842 $ (30 ) $ 812 Mortgage servicing rights capitalized 132 — 132 Amortization charged against servicing income (151 ) — (151 ) Change in impairment reserve — — — Balance at December 31, 2017 $ 823 $ (30 ) $ 793 Mortgage servicing rights capitalized 20 — 20 Amortization charged against servicing income (147 ) — (147 ) Change in impairment reserve (30 ) 30 — Balance at December 31, 2018 $ 666 $ — $ 666 Mortgage servicing rights acquired as a result of the merger 334 — 334 Mortgage servicing rights capitalized 618 — 618 Amortization charged against servicing income (271 ) — (271 ) Change in impairment reserve — (26 ) (26 ) Balance at December 31, 2019 $ 1,347 $ (26 ) $ 1,321 The fair value of our mortgage servicing rights (“MSR”) portfolio was $1.5 million and $1.0 million as of December 31, 2019 and 2018. The fair value of mortgage servicing rights is estimated based on the present value of expected cash flows, incorporating assumptions for discount rate, prepayment speed, and servicing cost. The weighted-average amortization period for mortgage servicing rights portfolio was 5.2 years and 7.5 years at December 31, 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) 2020 $ 202 2021 166 2022 135 2023 110 2024 89 Thereafter 619 Total $ 1,321 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposit | 11. DEPOSITS Deposits are summarized as follows: December 31, 2019 December 31, 2018 (dollars in thousands) Demand deposits (non-interest bearing) $ 630,593 $ 494,492 Interest bearing checking 450,098 431,702 Money market 181,406 135,585 Savings 914,499 628,212 Retail certificates of deposit under $100,000 56,602 36,223 Retail certificates of deposit $100,000 or greater 118,596 57,692 Wholesale certificates of deposit 7,084 27,504 Total deposits $ 2,358,878 $ 1,811,410 Certificates of deposit had the following schedule of maturities: December 31, 2019 December 31, 2018 (dollars in thousands) Less than 3 months remaining $ 52,883 $ 24,219 3 to 5 months remaining 47,701 17,486 6 to 11 months remaining 38,981 37,987 12 to 23 months remaining 31,501 28,529 24 to 47 months remaining 9,448 9,652 48 months or more remaining 1,768 3,546 Total certificates of deposit $ 182,282 $ 121,419 Interest expense on retail certificates of deposit $100,000 or greater was $2.1 million, $467,000, and $446,000 for the years ended December 31, 2019, 2018, and 2017, respectively. The aggregate amount of certificates of deposit in denominations that meet or exceed the FDIC insurance limit of $250,000 at December 31, 2019 and 2018 was $60.8 million and $31.8 million, respectively. Related Party Deposits Deposit accounts of directors, executive officers, and their respective affiliates totaled $7.2 million and $6.8 million as of December 31, 2019 and 2018, respectively. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | 12. BORROWINGS Information relating to short-term borrowings is presented below: For the Year Ended December 31, 2019 2018 (dollars in thousands) FHLB of Boston short-term advances Ending balance $ 135,691 $ 90,000 Average daily balance 84,414 15,183 Highest month-end balance 135,691 90,000 Weighted average interest rate 2.31 % 2.47 % Information relating to long-term borrowings is presented below: December 31, 2019 December 31, 2018 Amount Rate Amount Rate (dollars in thousands) FHLB of Boston long-term advances Due 09/01/2020; amortizing $ — 0.00 % $ 3,409 1.94 % All short- and long-term borrowings with the FHLB of Boston are secured by the Bank’s stock in the FHLB of Boston and a blanket lien on “qualified collateral” defined principally as 95% of the market value of certain U.S. Government and GSE obligations and 75% of the carrying value of certain residential mortgage loans. Based upon collateral pledged, the Bank’s unused borrowing capacity with the FHLB of Boston at December 31, 2019 was approximately $345.5 million. The Bank also has a line of credit with the FRB Boston. At December 31, 2019 and 2018, the Bank had pledged commercial real estate and commercial & industrial loans with aggregate principal balances of approximately $316.4 million and $291.7 million, respectively, as collateral for this line of credit. Based upon the collateral pledged, the Bank’s unused borrowing capacity with the FRB Boston at December 31, 2019 and 2018 was approximately $134.9 million and $167.5 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. INCOME TAXES In accordance with the Tax Cuts and Jobs Act of 2017, the Company’s statutory federal tax rate decreased from 35% to 21% effective January 1, 2018. The change in tax law required a one-time non-cash write down of our net deferred tax assets of $3.9 million in 2017. The components of income tax expense were as follows: For the Year Ended December 31, 2019 2018 2017 (dollars in thousands) Current Federal $ 5,954 $ 5,524 $ 8,446 State 2,597 2,404 2,225 8,551 7,928 10,671 Deferred Federal (63 ) (490 ) 2,948 State 173 (231 ) (261 ) Total deferred 110 (721 ) 2,687 Total income tax expense $ 8,661 $ 7,207 $ 13,358 The following is a reconciliation of the total income tax provision, calculated at statutory federal income tax rates, to the income tax provision in the consolidated statements of income: For the Year Ended December 31, 2019 Rate 2018 Rate 2017 Rate (dollars in thousands) Provision at statutory rates $ 7,123 21.00 % $ 6,528 21.00 % $ 9,861 35.00 % Increase/(decrease) resulting from: State tax, net of federal tax benefit 2,188 6.45 1,717 5.52 1,277 4.53 Tax-exempt income (599 ) (1.77 ) (580 ) (1.87 ) (1,079 ) (3.83 ) ESOP dividends (124 ) (0.37 ) (127 ) (0.41 ) (216 ) (0.77 ) Bank owned life insurance (129 ) (0.38 ) (140 ) (0.45 ) (205 ) (0.73 ) Benefit from stock compensation (150 ) (0.44 ) (168 ) (0.54 ) (190 ) (0.67 ) Non-deductible Acquisition Costs 236 0.70 — — — — Impact of Tax Cuts and Jobs Act — — — — 3,870 13.74 Other 116 0.34 (23 ) (0.07 ) 40 0.15 Total income tax expense $ 8,661 25.53 % $ 7,207 23.18 % $ 13,358 47.42 % The Company’s 2019 and 2018 net deferred tax assets were measured using a 27.86% and 28.11% tax rate, respectively, and consisted of the following components: December 31, 2019 December 31, 2018 (dollars in thousands) Gross deferred tax assets Allowance for loan losses $ 5,029 $ 4,715 Accrued retirement benefits 1,592 2,082 Unrealized losses on AFS securities 171 957 Incentive compensation 1,248 1,189 Equity based compensation 1,034 849 Lease Liability 9,765 333 ESOP dividends 165 169 Loss carryforwards as a result of the Optima merger 877 — Intangibles (merger related) 472 — Other 252 155 Total gross deferred tax assets 20,605 10,449 Gross deferred tax liabilities Deferred loan origination costs (911 ) (459 ) Depreciation of premises and equipment (1,021 ) (678 ) Right of Use Asset (9,356 ) — Mortgage servicing rights (368 ) (187 ) Goodwill (113 ) (114 ) Derivative transactions (607 ) (294 ) Total gross deferred tax liabilities (12,376 ) (1,732 ) Net deferred tax asset $ 8,229 $ 8,717 It is management’s belief, that it is more likely than not, that the reversal of deferred tax liabilities and results of future operations will generate sufficient taxable income to realize the deferred tax assets. Therefore, no valuation allowance was required at either December 31, 2019 and 2018 for the deferred tax assets. It should be noted, however, that factors beyond management’s control, such as the general state of the economy and real estate values, can affect future levels of taxable income and that no assurance can be given that sufficient taxable income will be generated in future periods to fully absorb deductible temporary differences. At December 31, 2019 and 2018, the Company had no unrecognized tax benefits or any uncertain tax positions. The Company does not expect the total amount of unrecognized tax benefits to significantly increase in the next 12 months. The Company’s federal income tax returns are open and subject to examination from the 2016 tax return year and forward. The Company’s state income tax returns are open from the 2016 and later tax return years based on individual state statute of limitations. On January 1, 2017, The Company adopted Accounting Standards Update No. 2016-09 - “ Improvements to Employee Share-Based Payment Accounting |
Pension and Retirement Plans
Pension and Retirement Plans | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension and Retirement Plans | 14. PENSION AND RETIREMENT PLANS The Company has a noncontributory, defined benefit pension plan (“Pension Plan”) covering substantially all employees hired before May 2, 2011. Employees in positions requiring at least 1,000 hours of service per year were eligible to participate upon the attainment of age 21 and the completion of 12 months of service. Benefits are based primarily on years of service and the employee’s average monthly pay during the five highest consecutive plan years of the employee’s final ten years. On October 23, 2017, the Company announced its decision to freeze the accrual of benefits within the Pension Plan, effective December 31, 2017. The Company also provides supplemental retirement benefits to certain current and former executive officers of the Company under the terms of Supplemental Executive Retirement Agreements (“Supplemental Retirement Plan”). Prior to 2016, the Company provided individual non-qualified defined benefit supplemental executive retirement plans (“DB SERPs”) to certain executives. The DB SERPs generally provide for an annual benefit payable in equal monthly installments following the executive’s retirement and continuing for at least the remainder of his or her lifetime, with such annual benefit generally based on the executive’s years of service and his or her highest three consecutive years of base salary and bonus. In 2016, the Company’s Board discontinued the use of DB SERPs for new entrants to the Company’s non-qualified retirement programs. Instead, new entrants are provided with individual non-qualified defined contribution supplemental executive retirement plans (“DC SERPs”). Under the DC SERPs, the Company may contribute an amount equal to 10% of the executive’s base salary and bonus to his or her account under the Company’s non-qualified deferred compensation plan, the Executive Deferred Compensation Plan. The Company also offers postretirement health care benefits for current and future retirees of the Bank. Certain employees receive a fixed monthly benefit at age 65 toward the purchase of postretirement medical coverage. The benefit received is based on the employee’s years of active service. The Company uses a December 31 measurement date each year to determine the benefit obligations for these plans. Projected benefit obligations and funded status were as follows: Pension Plan Supplemental Retirement Plan 2019 2018 2019 2018 (dollars in thousands) Change in projected benefit obligation Obligation at beginning of year $ 40,522 $ 43,943 $ 8,830 $ 9,204 Service cost — — 283 354 Interest cost 1,680 1,557 349 309 Actuarial loss/(gain) 4,670 (3,659 ) 770 (499 ) Benefits paid (1,471 ) (1,319 ) (610 ) (538 ) Obligation at end of year 45,401 40,522 9,622 8,830 Change in plan assets Fair value at beginning of year 42,648 45,247 — — Actual return on plan assets 8,954 (1,280 ) — — Employer contribution — — 610 538 Benefits paid (1,471 ) (1,319 ) (610 ) (538 ) Fair value at end of year 50,131 42,648 — — Funded status at end of year $ 4,730 $ 2,126 $ (9,622 ) $ (8,830 ) Amounts recognized in the consolidated balance sheets consisted of: Pension Plan Supplemental Retirement Plan 2019 2018 2019 2018 (dollars in thousands) Other assets/(liabilities) $ 4,730 $ 2,126 $ (9,622 ) $ (8,830 ) Amounts recognized in accumulated other comprehensive loss consisted of: Pension Plan Supplemental Retirement Plan 2019 2018 2019 2018 (dollars in thousands) Net actuarial loss/(gain) $ 3,709 $ 5,427 $ 1,128 $ 358 Prior service (benefit) (7 ) (12 ) — — Total $ 3,702 $ 5,415 $ 1,128 $ 358 Certain disaggregated information related to our retirement plans were as follows: Pension Plan Supplemental Retirement Plan 2019 2018 2019 2018 (dollars in thousands) Projected benefit obligation $ 45,401 $ 40,522 $ 9,622 $ 8,830 Accumulated benefit obligation 45,401 40,522 9,207 8,567 Fair value of plan assets 50,131 42,648 — — Funded status at end of year 4,730 2,126 (9,622 ) (8,830 ) The components of net periodic benefit cost and amounts recognized in other comprehensive income/ (loss) were as follows: Pension Plan Supplemental Retirement Plan 2019 2018 2019 2018 (dollars in thousands) Net periodic benefit cost Service cost $ — $ — $ 283 $ 354 Interest cost 1,680 1,557 349 309 Expected return on assets (2,721 ) (2,891 ) — — Amortization of prior service credit (4 ) (4 ) — — Amortization of net actuarial loss/(gain) 154 106 — 4 Net periodic benefit cost (891 ) (1,232 ) 632 667 Amounts recognized in other comprehensive income/( loss) Net actuarial loss/(gain) (1,563 ) 512 770 (499 ) Amortization of prior service credit 4 4 (4 ) Amortization of net actuarial gain (154 ) (106 ) — — Total recognized in other comprehensive income/( loss) (1,713 ) 410 770 (503 ) Total recognized in net periodic benefit cost and other comprehensive income/( loss) $ (2,604 ) $ (822 ) $ 1,402 $ 164 Weighted-average assumptions used to determine projected benefit obligations are as follows: Pension Plan Supplemental Retirement Plan 2019 2018 2019 2018 Discount rate 3.22 % 4.23 % 3.04 % 4.10 % Rate of compensation increase N/A N/A 4.00 % 4.00 % Weighted-average assumptions used to determine net periodic benefit cost are as follows: Pension Plan Supplemental Retirement Plan 2019 2018 2019 2018 Discount rate 4.23 % 3.58 % 4.10 % 3.39 % Expected long-term return on plan assets 6.50 % 6.50 % N/A N/A Rate of compensation increase N/A N/A 4.00 % 4.00 % To develop the expected long-term rate of return on assets assumption for the Pension Plan, the Company considered the historical returns and the future expectations for returns for each asset class, as well as target asset allocations of the pension portfolio. Based on this analysis, the Company selected 6.50% as the long-term rate of return on asset assumption. The Company maintains an Investment Policy for its Pension Plan. The objective of this policy is to seek a balance between capital appreciation, current income, and preservation of capital, with a longer term weighting towards equities because of the extended time horizon of the Pension Plan. The Investment Policy guidelines suggest that the target asset allocation percentages are from 30% to 60% in domestic large cap equities, from 5% to 20% in domestic small/mid cap equities, from 0% to 20% in international equities, and from 20% to 50% in cash and fixed income. The Company’s Pension Plan weighted-average asset allocations by asset category were as follows: December 31, 2019 2018 Equity securities 53 % 60 % Debt securities 36 35 Other 3 1 Cash and equivalents 8 4 Total 100 % 100 % The three broad levels of fair values used to measure the Pension Plan assets are as follows: • Level 1 – Quoted prices for identical assets in active markets. • Level 2 – Quoted prices for similar assets in active markets; quoted prices for identical or similar assets in inactive markets; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3 – Valuations derived from techniques in which one or more significant inputs or significant value drivers are unobservable in the markets and which reflect the Company’s market assumptions. The following table summarizes the various categories of the Pension Plan’s assets: Fair Value as of December 31, 2019 Level 1 Level 2 Level 3 Total (dollars in thousands) Asset category Cash and cash equivalents $ 4,834 $ — $ — $ 4,834 Fixed Income — 7,197 — 7,197 Equity securities Common Stock Large cap core 17,180 — — 17,180 Mid cap core — — — — Small cap core 2,627 — — 2,627 Mutual funds Domestic Equity 3,931 — — 3,931 International 3,650 — — 3,650 Domestic Fixed Income 10,712 10,712 Preferred Stock — — — — Total $ 42,934 $ 7,197 $ — $ 50,131 Fair Value as of December 31, 2018 Level 1 Level 2 Level 3 Total (dollars in thousands) Asset category Cash and cash equivalents $ 3,520 $ — $ — $ 3,520 Fixed Income — 6,534 — 6,534 Equity securities Common Stock Large cap core 16,127 — — 16,127 Mid cap core — — — — Small cap core 2,090 — — 2,090 Mutual funds Domestic Equity 4,320 — — 4,320 International 3,409 — — 3,409 Domestic Fixed Income 6,648 6,648 Preferred Stock — — — — Total $ 36,114 $ 6,534 $ — $ 42,648 There were no transfers between fair value levels during the years ended December 31, 2019 and 2018. The Company offers postretirement health care benefits for current and future retirees of the Bank. Employees receive a fixed monthly benefit at age 65 toward the purchase of postretirement medical coverage. The benefit received is based on the employee’s years of active service. The Company uses a December 31 measurement date each year to determine the benefit obligation for this plan. On November 7, 2019, the Company announced its decision to freeze the accrual of benefits to new hires within the plan. Projected benefit obligations and funded status were as follows: Postretirement Healthcare Plan 2019 2018 (dollars in thousands) Change in projected benefit obligation Obligation at beginning of year $ 598 $ 617 Service cost 25 23 Interest cost 25 22 Actuarial loss/(gain) 76 (30 ) Benefits paid (35 ) (34 ) Obligation at end of year 689 598 Change in plan assets Fair value at beginning of year — — Actual return on plan assets — — Employer contribution 35 33 Benefits paid (35 ) (33 ) Fair value at end of year — — Funded status at end of year $ (689 ) $ (598 ) Amounts recognized in the consolidated balance sheets consisted of: Postretirement Healthcare Plan 2019 2018 (dollars in thousands) Other liabilities $ (689 ) $ (598 ) Amounts recognized in accumulated other comprehensive loss consisted of: Postretirement Healthcare Plan 2019 2018 (dollars in thousands) Net actuarial (gain)/loss $ (34 ) $ (113 ) Prior service cost — — Total $ (34 ) $ (113 ) Information for retirement plans with an accumulated benefit obligation in excess of plan assets: Postretirement Healthcare Plan 2019 2018 (dollars in thousands) Projected benefit obligation $ 689 $ 598 Accumulated benefit obligation 689 598 Fair value of plan assets — — The components of net periodic benefit cost and amounts recognized in other comprehensive income were as follows: Postretirement Healthcare Plan 2019 2018 (dollars in thousands) Net periodic benefit cost Service cost $ 25 $ 23 Interest cost 25 22 Expected return on assets — — Amortization of prior service credit — — Amortization of net actuarial gain (3 ) — Net periodic benefit cost 47 45 Amounts recognized in other comprehensive income/( loss) Net actuarial (gain) loss 76 (30 ) Amortization of prior service credit — — Amortization of net actuarial gain 3 — Total recognized in other comprehensive income/( loss) 79 (30 ) Total recognized in net periodic benefit cost and other comprehensive income/( loss) $ 126 $ 15 Weighted-average assumptions used to determine projected benefit obligations are as follows: Postretirement Healthcare Plan 2019 2018 Discount rate 3.26 % 4.22 % Rate of compensation increase N/A N/A Weighted-average assumptions used to determine net periodic benefit cost are as follows: Postretirement Healthcare Plan 2019 2018 Discount rate 4.22 % 3.58 % Expected long-term return on plan assets N/A N/A Rate of compensation increase N/A N/A Assumed health care cost trend rates are as follows: Postretirement Healthcare Plan 2019 2018 Health care cost trend rate assumed for next year 4.00 % 4.00 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.00 % 4.00 % Year that the rate reaches the ultimate trend rate 2019 2018 Assumed health care trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects: One Percentage Point Increase Decrease (dollars in thousands) Effect on total service and interest cost $ — $ — Effect on postretirement benefit obligation 2 (2 ) Benefits expected to be paid in the next ten years are as follows: Pension Plan Supplemental Retirement Plan Postretirement Healthcare Plan Total (dollars in thousands) Year-ended December 31, 2020 $ 1,751 $ 594 $ 30 $ 2,375 2021 1,813 591 30 2,434 2022 1,948 609 31 2,588 2023 2,061 605 31 2,697 2024 2,135 602 31 2,768 2025-2029 inclusive 11,784 2,916 166 14,866 Ten year total $ 21,492 $ 5,917 $ 319 $ 27,728 The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost during 2019 are as follows: Pension Plan Supplemental Retirement Plan Postretirement Healthcare Plan Total (dollars in thousands) Prior service cost $ (4 ) $ — $ — $ (4 ) Net (gain)/loss — — — — Total $ (4 ) $ — $ — $ (4 ) Employee Profit Sharing and 401(k) Plan The Company maintains a Profit Sharing Plan (“PSP”) that provides for deferral of federal and state income taxes on employee contributions allowed under Section 401(k) of federal law. Beginning in 2018, the Company matched employee contributions up to 100% of the first 4% of each participant’s salary, eligible bonus, and eligible incentive, up from 3% in 2017. Employees are eligible to participate in the PSP on the first day of their initial date of service. Each year, the Company may also make a discretionary contribution to the PSP. In 2018, employees were eligible to participate in the discretionary contribution portion of the PSP after completing 12 months of employment, and 1,000 hours of service. The employee must be employed on the last day of the calendar year, or retire at the normal retirement age of 65 during the calendar year to receive the discretionary contribution. Effective in 2019, employees are eligible to participate in the discretionary contribution portion of the PSP on the first day of their initial date of service. Employee Stock Ownership Plan The Company has an Employee Stock Ownership Plan (“ESOP”) for its eligible employees. Employees are eligible to participate upon the attainment of age 21 and the completion of 12 months of service consisting of at least 1,000 hours. Purchases of the Company’s stock by the ESOP will be funded by employer contributions or reinvestment of cash dividends. Total expenses related to the Profit Sharing and ESOP Plans for the years ended December 31, 2019, 2018 and 2017, amounted to approximately $2.8 million, $2.6 million, and $1.5 million, respectively. Defined Contribution SERP Plan (“DC SERP”) For executives participating in the DC SERP plan, the Company made a discretionary contribution of 10% of each executive’s base salary and bonus to his or her account under the Company’s DC SERP, the Executive Deferred Compensation Plan. Total expenses related to the Company’s DC SERP for the years ended December 31, 2019, 2018 and 2017, amounted to approximately $167,000, $209,000, and $126,000, respectively. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share Based Compensation [Abstract] | |
Share-Based Compensation | 15. SHARE-BASED COMPENSATION In 1993, the Company adopted a Stock Option Plan for key employees as an incentive for them to assist the Company in achieving long-range performance goals. During 2005, the Company’s shareholders amended the plan to permit the issuance of restricted stock, restricted stock units, and stock appreciation rights. In 2017, the Company adopted the 2017 Equity and Cash Incentive Plan (the “2017 Plan”) and all future awards will be made under the 2017 Plan. The 2017 plan permits the issuance of restricted stock, restricted stock units (both time and performance-based), stock options, and stock appreciation rights. Stock options time-vest over a five-year period. All options expire ten years from the date granted and have been issued at fair value at the date of grant which, in some instances, may be less than publicly traded values. There were no outstanding stock options at December 31, 2019. A summary of stock option transactions for the year ended December 31, 2018 is presented below: 2019 2018 Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Stock Options Outstanding at beginning of year — $ — 16,377 $ 29.21 Granted — — — — Forfeited — — — — Expired — — (2,600 ) 29.21 Exercised — — (13,777 ) 29.21 Outstanding at end of year — $ — — $ — Exercisable at end of year — $ — — $ — Restricted stock awards time-vest either over a three-year or five-year period and have been fair valued as of the date of grant. The holders of restricted stock awards participate fully in the rewards of stock ownership of the Company, including voting and dividend rights. A summary of restricted stock transactions for the periods of December 31, 2019 and 2018, and changes during the years ended on those dates, is presented below: 2019 2018 Number of Shares Weighted Average Grant Value Number of Shares Weighted Average Grant Value Restricted stock Non-vested at beginning of year 41,311 $ 65.10 43,240 $ 53.13 Granted 11,330 75.67 17,373 80.43 Vested (14,642 ) 60.55 (15,760 ) 50.10 Forfeited (1,878 ) 65.33 (3,542 ) 60.84 Non-vested at end of year 36,121 $ 70.25 41,311 $ 65.10 Performance-based restricted stock units vest based upon the Company’s performance over a three-year period and have been fair valued as of the date of grant. The holders of performance-based restricted stock units do not participate in the rewards of stock ownership of the Company until vested. A summary of non-vested performance-based restricted stock units outstanding as of December 31, 2019 and 2018, and changes during the years ended on those dates, is presented below: 2019 2018 Number of Units Weighted Average Grant Value Number of Units Weighted Average Grant Value Performance-based restricted stock units Non-vested at beginning of year 41,411 $ 66.39 21,613 $ 56.05 Granted 28,542 73.00 23,511 76.56 Vested (Performance achieved) (12,697 ) 46.00 — — Forfeited — — (3,713 ) 70.68 Expired (Performance not achieved) — — — — Non-vested at end of year 57,256 $ 72.82 41,411 $ 66.39 Time based restricted stock units vest over a three-year-period and have been fair valued as of the date of the grant. The holders of time based restricted stock units do not participate in the rewards of stock ownership of the company until vested. A summary of nonvested time based restricted stock units outstanding as of December 31, 2019 and 2018, and changes during the years ended on those dates, is presented below: 2019 2018 Number of Shares Weighted Average Grant Value Number of Shares Weighted Average Grant Value Time-based restricted stock units Non-vested at beginning of year 6,777 $ 76.56 — $ — Granted 8,132 73.00 7,839 76.56 Vested (2,251 ) 76.56 (225 ) 76.56 Forfeited — — (837 ) 76.56 Non-vested at end of year 12,658 $ 74.27 6,777 $ 76.56 The following table presents the amounts recognized in the consolidated income statement for restricted stock awards, time-based restricted stock units, and performance-based restricted stock units: December 31, 2019 2018 2017 (dollars in thousands) Share-based compensation expense $ 2,632 $ 2,592 $ 1,045 Related income tax benefit $ 733 $ 729 $ 427 The 2017 Plan allows Directors of the Company to receive their annual retainer fee in the form of stock in the Company. Total shares issued under the 2017 Plan in the years ended December 31, 2019 and 2018 were 4,484 and 4,164, respectively. |
Financial Instruments with Off-
Financial Instruments with Off-Balance-Sheet Risk | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments with Off-Balance-Sheet Risk | 16. FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK To meet the financing needs of its customers, the Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business. These financial instruments are primarily comprised of commitments to extend credit, commitments to sell residential real estate mortgage loans, risk participation agreements, and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and standby letters of credit is represented by the contractual amount of those instruments assuming that the amounts are fully advanced and that collateral or other security is of no value. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Off-balance-sheet financial instruments with contractual amounts that present credit risk included the following: December 31, 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 $ 428,020 $ 368,410 Origination of new loans 24,413 24,505 Standby letters of credit 9,150 8,752 Financial instruments whose notional amount exceeds the amount of credit risk: Commitments to sell residential mortgage loans 3,909 — Standby letters of credit are conditional commitments issued by the Bank to guarantee performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. Most guarantees extend for one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The collateral supporting those commitments varies and may include real property, accounts receivable, or inventory. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained upon extension of the credit is based on management’s credit evaluation of the customer. Collateral held varies, but may include primary residences, accounts receivable, inventory, property, plant and equipment, and income-producing commercial real estate. See Note 23 - Derivatives and Hedging Activities |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 17. COMMITMENTS AND CONTINGENCIES Lease Commitments . The Company is obligated under various lease agreements covering its main office, branch offices, and other locations. These agreements are accounted for as operating leases and their terms expire between 2019 and 2030 and, in some instances, contain options to renew for periods up to 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: December 31, 2019 Operating Leases Balance Sheet Location (dollars in thousands) Right-of-use asset $ 33,587 Right-of-use asset operating leases Lease liability $ 35,054 Operating lease 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: Twelve Months Ended December 31, 2019 (dollars in thousands) Operating lease cost $ 5,280 Short-term lease cost — Variable lease cost (Cost excluded from lease payments) 2 Sublease income (64 ) Total Operating Lease Cost $ 5,218 Other Information Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases $ 5,027 Operating Lease - Operating Cash Flows (Liability reduction) 3,868 Right-of-use assets obtained in exchange for new operating lease liabilities 37,728 Weighted average lease term - operating leases 8.15 Years Weighted average discount rate - operating leases 3.39 % The total minimum lease payments due in future periods under these agreements in effect at December 31, 2019 and December 31, 2018 were as follows: Year Ended Future Minimum December 31, 2019 Lease Payments (dollars in thousands) 2020 $ 5,478 2021 5,523 2022 5,371 2023 5,021 2024 4,355 Thereafter 14,553 Total minimum lease payments 40,301 Less: interest (5,247 ) Total lease liability $ 35,054 Year Ended Future Minimum December 31, 2018 Lease Payments (dollars in thousands) 2019 $ 4,448 2020 4,661 2021 4,662 2022 4,553 2023 4,455 Thereafter 17,128 Total minimum lease payments $ 39,907 Several lease agreements contain clauses calling for escalation of minimum lease payments contingent on increases in real estate taxes, gross income adjustments, percentage increases in the consumer price index, and certain ancillary maintenance costs. Total rental expense was $5.7 million, $4.7 million, and $4.7 million for the years ended December 31, 2019, 2018 and 2017, respectively. Change in Control Agreements . The Company has entered into agreements with its Chief Executive Officer and with certain other senior officers, whereby, following the occurrence of a change in control of the Company, if employment is terminated (except because of death, retirement, disability, or for “cause” as defined in the agreements) or is voluntarily terminated for “good reason,” as defined in the agreements, said officers will be entitled to receive additional compensation, as defined in the agreements. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | 18. SHAREHOLDERS’ EQUITY Capital guidelines issued by the Federal Reserve Bank (the “FRB”) and by the FDIC require that the Company and the Bank maintain minimum capital levels for capital adequacy purposes. These regulations also require banks and their holding companies to maintain higher capital levels to be considered “well-capitalized.” Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, there are specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The risk-based capital rules are designed to make regulatory capital more sensitive to differences in risk profiles among bank and bank holding companies, to account for off-balance-sheet exposure, and to minimize disincentives for holding liquid assets. In July 2013, the Federal Reserve, the Office of the Comptroller of the Currency (“OCC”), and the FDIC approved final rules (the “Capital Rules”) establishing a new comprehensive capital framework for U.S. banking organizations. The Capital Rules generally implement the Basel Committee on Banking Supervision’s (the “Basel Committee”) December 2010 final capital framework referred to as “Basel III” for strengthening international capital standards. The Capital Rules revise the definitions and the components of regulatory capital, as well as address other issues affecting the numerator in banking institutions’ regulatory capital ratios. The Capital Rules also address asset risk weights and other matters affecting the denominator in banking institutions’ regulatory capital ratios and replace the existing general risk-weighting approach with a more risk-sensitive approach. The Capital Rules: (i) include “Common Equity Tier 1” (“CET1”) and related regulatory capital ratio of CET1 to risk-weighted assets; (ii) specify that Tier 1 capital consists of CET1 and “Additional Tier 1 capital” instruments meeting certain revised requirements; (iii) mandate that most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital; and (iv) expand the scope of the deductions from and adjustments to capital as compared to existing regulations. Under the Capital Rules, for most banking organizations, including the Company, the most common form of Additional Tier 1 capital is non-cumulative perpetual preferred stock, and the most common forms of Tier 2 capital are subordinated notes and a portion of the allocation for loan and lease losses, in each case, subject to the Capital Rules’ specific requirements. Pursuant to the Capital Rules, effective January 1, 2015, the minimum capital ratios are as follows: • 4.5% CET1 to risk-weighted assets; • 6.0% Tier 1 capital (that is, CET1 plus Additional Tier 1 capital) to risk-weighted assets; • 8.0% Total capital (that is, Tier 1 capital plus Tier 2 capital) to risk-weighted assets; and • 4.0% Tier 1 capital to average consolidated assets as reported on consolidated financial statements (called “leverage ratio”). The Capital Rules also include a “capital conservation buffer,” composed entirely of CET1, in addition to these minimum risk-weighted asset ratios. The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions that do not hold the requisite capital conservation buffer will face constraints on dividends, capital instrument repurchases, interest payments on capital instruments and discretionary bonus payments based on the amount of the shortfall. Thus, the capital standards applicable to the Company include an additional capital conservation buffer of 2.5% of CET1, effectively resulting in minimum ratios inclusive of the capital conservation buffer of (i) CET1 to risk-weighted assets of at least 7%, (ii) Tier 1 capital to risk-weighted assets of at least 8.5%, and (iii) total capital to risk-weighted assets of at least 10.5%. The Capital Rules provide for a number of deductions from and adjustments to CET1. These include, for example, the requirement that mortgage servicing assets, deferred tax assets arising from temporary differences that could not be realized through net operating loss carrybacks, and significant investments in non-consolidated financial entities be deducted from CET1 to the extent that any one such category exceeds 10% of CET1 or all such items, in the aggregate, exceed 15% of CET1. In November 2017, the Federal Reserve finalized a rule pausing the phase-in of these deductions and adjustments for non-advanced approaches institutions. In July 2019, the OCC, the Federal Reserve Board and the FDIC adopted a final rule intended to simply the Capital Rules described above for non-advanced approaches institutions. Institutions may implement the provisions of the simplification rule beginning on January 1, 2020 and must implement them by April 1, 2020. The transition provisions to the Capital Rules issued by these agencies in November 2017 will cease to apply to an institution in the quarter in which it adopts the simplification rule. In addition, under the current general risk-based capital rules, the effects of accumulated other comprehensive income or loss items included in shareholders’ equity (for example, mark-to-market of securities held in the available for sale portfolio) under U.S. generally accepted accounting principles The Capital Rules also preclude certain hybrid securities, such as trust preferred securities, from inclusion in bank holding companies’ Tier 1 capital, although bank holding companies that had total consolidated assets of less than $15 billion at December 31, 2009 may include trust preferred securities issued prior to May 19, 2010 as a component of Tier 1 capital. The risk-weighting categories in the Capital Rules are standardized and include a risk-sensitive number of categories, depending on the nature of the assets, generally ranging from 0% for U.S. government and agency securities, to 1,250% for certain credit exposures, and resulting in higher risk weights for a variety of asset classes. Management believes that as of December 31, 2019 and 2018, the Company and the Bank met all applicable minimum capital requirements and were considered “well-capitalized” by both the FRB and the FDIC. There have been no events or conditions since the end of the year that management believes would have changed the Company’s or the Bank’s category. In September 2019, the OCC, the Federal Reserve Board and the FDIC adopted a final rule that is intended to further simply the Capital Rules for depository institutions and their holding companies that have less than $10 billion in total consolidated assets, such as us, if such institutions meet certain qualifying criteria. This final rule became effective on January 1, 2020. Under this final rule, if we meet the qualifying criteria, including having a leverage ratio (equal to tier 1 capital divided by average total consolidated assets) of greater than 9 percent, we will be eligible to opt into the community bank leverage ratio framework. If we opt into this framework, we will be considered to have satisfied the generally applicable risk-based and leverage capital requirements in the Capital Rules (as modified pursuant to the simplification rule) and will be considered to have met the well-capitalized ratio requirements for PCA purposes. We are currently evaluating the requirements of this rule. The Company’s and the Bank’s actual and required capital measures were as follows: Actual 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 (dollars in thousands) At December 31, 2019 Cambridge Bancorp: Total capital (to risk-weighted assets) $ 272,727 13.6 % $ 210,342 10.5 % N/A N/A Tier I capital (to risk-weighted assets) 254,497 12.7 % 170,277 8.5 % N/A N/A Common equity tier I capital (to risk-weighted assets) 254,497 12.7 % 140,228 7.0 % N/A N/A Tier I capital (to average assets) 254,497 9.0 % 113,365 4.0 % N/A N/A Cambridge Trust Company: Total capital (to risk-weighted assets) $ 271,034 13.5 % $ 210,341 10.5 % $ 200,325 10.0 % Tier I capital (to risk-weighted assets) 252,804 12.6 % 170,276 8.5 % 160,260 8.0 % Common equity tier I capital (to risk-weighted assets) 252,804 12.6 % 140,227 7.0 % 130,211 6.5 % Tier I capital (to average assets) 252,804 8.9 % 113,364 4.0 % 141,705 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 Income
Other Income | 12 Months Ended |
Dec. 31, 2019 | |
Other Income And Expenses [Abstract] | |
Other Income | 19. OTHER INCOME The components of other income were as follows: For the Year Ended December 31, 2019 2018 2017 (dollars in thousands) Safe deposit box income $ 333 $ 342 $ 348 Loan fee income 1,030 358 473 Miscellaneous income 564 569 334 Total other income $ 1,927 $ 1,269 $ 1,155 |
Other Operating Expenses
Other Operating Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Other Income And Expenses [Abstract] | |
Other Operating Expenses | 20. OTHER OPERATING EXPENSES The components of other operating expenses were as follows: For the Year Ended December 31, 2019 2018 2017 (dollars in thousands) Director fees $ 527 $ 724 $ 576 Charitable donations & sponsorships 575 518 432 Printing and supplies 437 272 251 Travel and entertainment 579 456 339 Dues and memberships 412 293 260 Physical security 86 131 172 Postage and mailing 246 201 229 Miscellaneous expense 337 (331 ) 885 Total other operating expenses $ 3,199 $ 2,264 $ 3,144 Miscellaneous expense in 2018 and 2017 includes the reclassification adjustment for retirement plan expenses as required upon adoption of ASU 2017-07. |
Other Comprehensive Income
Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Other Comprehensive Income | 21. OTHER COMPREHENSIVE INCOME Comprehensive income is defined as all changes to equity except investments by and distributions to shareholders. Net income is a component of comprehensive income, with all other components referred to in the aggregate as “other comprehensive income.” The Company’s other comprehensive income consists of unrealized gains or losses on securities held at year-end classified as available for sale and the component of the unfunded retirement liability computed in accordance with the requirements of ASC 715, “ Compensation – Retirement Benefits. For the Year Ended December 31, 2019 For the Year Ended December 31, 2018 For the Year Ended December 31, 2017 Before Tax Amount Tax (Expense) or Benefit Net-of- tax Amount Before Tax Amount Tax (Expense) or Benefit Net-of- tax Amount Before Tax Amount Tax (Expense) or Benefit Net-of- tax Amount (dollars in thousands) Unrealized (losses)/gains on available for sale securities Unrealized holding (losses)/gains arising during the period $ 3,267 $ (767 ) $ 2,500 $ (231 ) $ (11 ) $ (242 ) $ 187 $ (59 ) $ 128 Reclassification adjustment for (gains)/losses recognized in net income 81 (19 ) 62 (2 ) — (2 ) 3 (2 ) 1 Derivatives Change in interest rate contracts 1,134 (313 ) 821 1,045 (294 ) 751 — — — Defined benefit retirement plans Net change in retirement liability 864 (241 ) 623 124 (35 ) 89 6,545 (2,674 ) 3,871 Total Other Comprehensive Income/(Loss) $ 5,346 $ (1,340 ) $ 4,006 $ 936 $ (340 ) $ 596 $ 6,735 $ (2,735 ) $ 4,000 Reclassifications out of accumulated other comprehensive income (“AOCI”) are presented below: For the Year Ended December 31, Details about Accumulated Other Comprehensive Income (Loss) Components 2019 2018 2017 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 $ (3 ) (Loss) gain on disposition of investment securities Tax benefit or (expense) 19 — 2 Provision for income taxes Net of tax $ (62 ) $ 2 $ (1 ) Net income |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 22. EARNINGS PER SHARE The following represents a reconciliation between basic and diluted earnings per share: For the Year Ended December 31, 2019 2018 2017 (dollars in thousands, except per share data) Earnings per common share - basic: Numerator: Net income $ 25,257 $ 23,881 $ 14,816 Less dividends and undistributed earnings allocated to participating securities (210 ) (239 ) (157 ) Net income applicable to common shareholders $ 25,047 $ 23,642 $ 14,659 Denominator: Weighted average common shares outstanding 4,629 4,062 4,031 Earnings per common share - basic $ 5.41 $ 5.82 $ 3.64 Earnings per common share - diluted: Numerator: Net income $ 25,257 $ 23,881 $ 14,816 Less dividends and undistributed earnings allocated to participating securities (210 ) (239 ) (157 ) Net income applicable to common shareholders $ 25,047 $ 23,642 $ 14,659 Denominator: Weighted average common shares outstanding 4,629 4,062 4,031 Dilutive effect of common stock equivalents 33 37 35 Weighted average diluted common shares outstanding 4,662 4,099 4,066 Earnings per common share - diluted $ 5.37 $ 5.77 $ 3.61 |
Derivative And Hedging Activiti
Derivative And Hedging Activities | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative And Hedging Activities | 23. DERIVATIVES and Hedging Activities The Company utilizes interest rate swaps and floors to mitigate exposure to interest rate risk and to facilitate the needs of our customers. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts principally related to the Company’s assets. Cash Flow Hedges of Interest Rate Risk The Company uses interest floors to manage its exposure to interest rate movements. Interest rate floors designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates fall below the strike rate on the contract in exchange for an up-front premium. The Company executed an interest rate floor with a notional value of $150.0 million during the fourth quarter of 2018. The Company did not execute any new cash flow hedges in 2019. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income and subsequently reclassified into interest income in the same period(s) during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge components excluded from the assessment of effectiveness are recognized over the life of the hedge on a systematic and rational basis. The earnings recognition of excluded components is presented in interest income. Amounts reported in accumulated other comprehensive income related to derivatives is 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 through other loan related derivative income. The credit risk associated with swap transactions is the risk of default by the counterparty. To minimize this risk, the Company enters into interest rate agreements only with highly rated counterparties that management believes to be creditworthy. The notional amounts of these agreements do not represent amounts exchanged by the parties and, thus, are not a measure of the potential loss exposure. Risk Participation Agreements. The Company enters into risk participation agreements (“RPAs”) with other banks participating in commercial loan arrangements. Participating banks guarantee the performance on borrower-related interest rate swap contracts. RPAs are derivative financial instruments and are recorded at fair value. These derivatives are not designated as hedges and therefore, changes in fair value are recognized in earnings with a corresponding offset within other assets or other liabilities. Under a risk participation-out agreement, a derivative asset, the Company participates out a portion of the credit risk associated with the interest rate swap position executed with the commercial borrower, for a fee paid to the participating bank. Under a risk participation-in agreement, a derivative liability, the Company assumes, or participates in, a portion of the credit risk associated with the interest rate swap position with the commercial borrower 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: December 31, 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 $ 2,911 $ — Other Liabilities $ — Total derivatives designated as hedging instruments $ 2,911 $ — Derivatives not designated as hedging instruments Loan related derivative contracts Interest rate swaps with customers 241,187 Other Assets $ 12,980 — Other Liabilities $ — Mirror swaps with counterparties — Other Assets — 241,187 Other Liabilities 12,980 Risk participation agreements out to counterparties 19,000 Other Assets 21 — Other Liabilities — Risk participation agreements in with counterparties — Other Assets — 88,489 Other Liabilities 250 Total derivatives not designated as hedging instruments $ 13,001 $ 13,230 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 tables presents the effect of cash flow hedge accounting on AOCI as of the periods presented: 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 2019 2019 (dollars in thousands) (dollars in thousands) Interest rate contracts $ 984 $ 2,120 $ (1,136 ) Interest Income $ (194 ) $ — $ (194 ) Total $ 984 $ 2,120 $ (1,136 ) $ (194 ) $ — $ (194 ) 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 2018 2018 (dollars in thousands) (dollars in thousands) Interest rate contracts $ 1,002 $ — $ 1,002 Interest Income $ (43 ) $ — $ (43 ) Total $ 1,002 $ — $ 1,002 $ (43 ) $ — $ (43 ) During 2019, the Company estimates that an additional $295,000 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 as of the periods presented: Year Ended December 31, 2019 Year Ended December 31, 2018 Interest Income Interest Income (dollars in thousands) (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 $ (194 ) $ (43 ) The effects of fair value and cash flow hedging: Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest rate contracts Amount of gain or (loss) reclassed from AOCI into income $ (194 ) $ (43 ) Amount of gain or (loss) reclassed from AOCI into income - Included Component — — Amount of gain or (loss) reclassed from AOCI into income - Excluded Component $ (194 ) $ (43 ) The following table presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Income Statement as of the periods presented: Amount of Gain or (Loss) Recognized in Income on Derivative Year Ended December 31 Year Ended December 31 Year Ended December 31 2019 2018 2017 Location of Gain or (Loss) (dollars in thousands) Other contracts Other income $ 311 $ 276 $ 426 Total $ 311 $ 276 $ 426 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 position(s), and the Company would be required to settle its obligations under the agreements. As of December 31, 2019 and December 31, 2018, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $9.6 million and $811,000, respectively. As of December 31, 2019 and December 31, 2018, the Company has minimum collateral posting thresholds with certain of its derivative counterparties and has posted cash collateral of $10.4 million and $260,000, respectively. If the Company had breached any of these provisions at December 31, 2019 or December 31, 2018, it could have been required to settle its obligations under the agreements at their termination value of $ 9.6 million and $811,000, respectively. Balance Sheet Offsetting Certain financial instruments may be eligible for offset in the consolidated balance sheet and/or subject to master netting arrangements or similar agreements. The Company’s derivative transactions with institutional counterparties are generally executed under International Swaps and Derivative Association (“ISDA”) master agreements which include “right of set-off” provisions. In such cases there is generally a legally enforceable right to offset recognized amounts and there may be an intention to settle such amounts on a net basis. Generally, the Company does not offset such financial instruments for financial reporting purposes. The following tables present the information about financial instruments that are eligible for offset in the consolidated balance sheet as December 31, 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 December 31, 2019 (dollars in thousands) Offsetting of Derivative Assets Derivative Assets $ 15,912 $ — $ 15,912 $ 3,128 $ — $ 12,784 Offsetting of Derivative Liabilities Derivative Liabilities $ 13,230 $ — $ 13,230 $ 3,128 $ 9,645 $ 457 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 | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 24. FAIR VALUE MEASUREMENTS The following is a summary of the carrying values and estimated fair values of the Company’s significant financial instruments as of the dates indicated: December 31, 2019 December 31, 2018 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (dollars in thousands) Financial assets Cash and cash equivalents $ 61,335 $ 61,335 $ 18,473 $ 18,473 Securities available for sale 140,330 140,330 168,163 168,163 Securities held to maturity 258,172 264,114 282,869 281,310 Loans, net 2,208,548 2,160,087 1,543,004 1,484,905 Loans held for sale 1,546 2,051 — — FHLB Boston stock 7,854 7,854 6,844 6,844 Accrued interest receivable 7,052 7,052 5,762 5,762 Mortgage servicing rights 1,321 1,526 666 941 Interest rate contracts 2,911 2,911 1,970 1,970 Loan level interest rate swaps 12,980 12,980 5,782 5,782 Risk participation agreements out to counterparties 21 21 28 28 Financial liabilities Deposits 2,358,878 2,358,089 1,811,410 1,809,051 Short-term borrowings 135,691 135,744 90,000 90,000 Long-term borrowings — — 3,409 3,363 Loan level interest rate swaps 12,980 12,980 5,782 5,782 Risk participation agreements in with counterparties 250 250 179 179 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. The following tables summarize certain assets reported at fair value on a recurring basis: Fair Value as of December 31, 2019 Level 1 Level 2 Level 3 Total (dollars in thousands) Measured on a recurring basis Securities available for sale U.S. GSE obligations $ — $ 37,848 $ — $ 37,848 Mortgage-backed securities — 102,482 — 102,482 Corporate debt securities — — — — Other assets Interest rate swaps with customers — 12,980 — 12,980 Risk participation agreements out to counterparties — 21 — 21 Interest rate contracts — 2,911 — 2,911 Other liabilities Mirror swaps with counterparties — 12,980 — 12,980 Risk participation agreements in with counterparties — 250 — 250 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 December 31, 2019, which were measured at fair value on a non-recurring basis: December 31, 2019 Level 1 Level 2 Level 3 Total (dollars in thousands) Items recorded at fair value on a non-recurring basis Assets Collateral dependent impaired loans $ — $ — $ 2,541 $ 2,541 Loans held for sale 1,546 — — 1,546 Other real estate owned — — 163 163 Total $ 1,546 $ — $ 2,704 $ 4,250 Collateral dependent impaired loans . Collateral dependent loans are carried at the lower of cost or fair value of the collateral less estimated costs to sell which approximates fair value. The Company uses the appraisal value of the collateral and applies certain adjustments depending on the nature, quality, and type of collateral securing the loan. Loans held for sale . Loans held for sale are carried at the lower of fair value or carrying value (unpaid principal and unamortized loans fees). Other Real Estate Owned . These properties are carried at fair value less estimated costs to sell. 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 fair value levels for the years ended December 31, 2019 and 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. |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | 25. Quarterly Results of Operations (unaudited) 2019 Quarters Fourth Third Second First (dollars in thousands, except share data) Interest and Dividend Income $ 26,415 $ 26,336 $ 24,470 $ 19,118 Interest Expense 4,807 5,285 4,694 2,857 Net Interest and Dividend Income 21,608 21,051 19,776 16,261 Provision for (Release of) Loan Losses 331 2,170 596 (93 ) Net Interest and Dividend Income after Provision for Loan Losses 21,277 18,881 19,180 16,354 Noninterest Income 9,933 10,366 8,145 7,957 Noninterest Expense 21,428 18,863 21,513 16,373 Income Before Taxes 9,782 10,384 5,812 7,938 Income Taxes 2,673 2,708 1,540 1,740 Net Income $ 7,109 $ 7,676 $ 4,272 $ 6,198 Share Data: Average Shares Outstanding, Basic 4,939,973 4,815,020 4,682,109 4,072,805 Average Shares Outstanding, Diluted 4,980,439 4,842,965 4,715,724 4,106,658 Basic Earnings Per Share $ 1.43 $ 1.58 $ 0.91 $ 1.51 Diluted Earnings Per Share $ 1.42 $ 1.57 $ 0.90 $ 1.49 2018 Quarters Fourth Third Second First (dollars in thousands, except share data) Interest and Dividend Income $ 18,385 $ 17,602 $ 16,936 $ 16,132 Interest Expense 1,975 1,431 1,082 979 Net Interest and Dividend Income 16,410 16,171 15,854 15,153 Provision for (Release of) Loan Losses 715 457 (79 ) 409 Net Interest and Dividend Income after Provision for Loan Losses 15,695 15,714 15,933 14,744 Noninterest Income 8,038 8,929 7,844 8,178 Noninterest Expense 16,842 15,879 15,765 15,501 Income Before Taxes 6,891 8,764 8,012 7,421 Income Taxes 1,585 2,105 1,901 1,616 Net Income $ 5,306 $ 6,659 $ 6,111 $ 5,805 Share Data: Average Shares Outstanding, Basic 4,065,681 4,064,620 4,059,927 4,053,355 Average Shares Outstanding, Diluted 4,102,546 4,101,378 4,094,489 4,071,975 Basic Earnings Per Share $ 1.29 $ 1.62 $ 1.49 $ 1.42 Diluted Earnings Per Share $ 1.28 $ 1.61 $ 1.48 $ 1.41 |
Condensed Financial Statements
Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Statements of Parent Company | 26. Condensed Financial Statements of Parent Company The condensed balance sheets of Cambridge Bancorp, the Parent Company, as of December 31, 2019 Condensed Balance Sheet December 31, 2019 2018 (dollars in thousands) ASSETS Cash and cash equivalents $ 1,680 $ 4,412 Other assets 13 — Investment in subsidiary 284,868 162,614 Total assets $ 286,561 $ 167,026 SHAREHOLDERS’ EQUITY Shareholders’ equity $ 286,561 $ 167,026 Total shareholders’ equity $ 286,561 $ 167,026 Condensed Statements of Income For the Year Ended December 31, 2019 2018 2017 (dollars in thousands) Income Dividends from subsidiary $ 10,732 $ 8,615 $ 8,052 Total income 10,732 8,615 8,052 Expenses Other expenses 132 116 — Total expenses 132 116 — Income before income taxes and equity in undistributed income of subsidiary 10,600 8,499 8,052 Income tax benefit (36 ) (32 ) — Income of parent company 10,636 8,531 8,052 Equity in undistributed income of subsidiary 14,621 15,350 6,764 Net income $ 25,257 $ 23,881 $ 14,816 Condensed Statements of Cash Flows For the Year Ended December 31, 2019 2018 2017 (dollars in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 25,257 $ 23,881 $ 14,816 Adjustments to reconcile net income to net cash provided by operating activities Change in other assets, net (13 ) — — Undistributed income of subsidiary (14,621 ) (15,350 ) (6,764 ) Net cash provided by operating activities 10,623 8,531 8,052 CASH FLOWS FROM INVESTING ACTIVITIES: Cash paid in business combinations (3,525 ) — — Investment in subsidiary (38,202 ) — — Net cash (used in)/provided by investing activities (41,727 ) — — CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from the issuance of common stock 38,576 761 1,522 Repurchase of common stock (687 ) (574 ) (470 ) Cash dividends paid on common stock (9,517 ) (8,041 ) (7,582 ) Net cash provided by/(used in) financing activities 28,372 (7,854 ) (6,530 ) Net increase (decrease) in cash (2,732 ) 677 1,522 Cash at beginning of year 4,412 3,735 2,213 Cash at end of year $ 1,680 $ 4,412 $ 3,735 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for loan losses and the valuation of deferred tax assets are particularly subject to change. |
Reclassifications | Reclassifications Certain amounts in the prior year’s financial statements may have been reclassified to conform with the current year’s presentation. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, amounts due from banks, and overnight investments. |
Investment Securities | Investment Securities Investment securities are classified as either ‘held to maturity’ or ‘available for sale’ in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 320, “ Investments – Debt and Equity Securities. Debt and equity securities not classified as held to maturity are classified as available for sale and carried at fair value with unrealized after-tax gains and losses reported net as a separate component of shareholders’ equity. The Company classifies its securities based on its intention at the time of purchase. Declines in the fair value of investment securities below their amortized cost that are deemed to be other-than-temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income. In estimating other-than-temporary impairment losses, management considers: (1) the length of time and the extent to which the fair value has been less than cost; (2) the financial condition and near-term prospects of the issuer; and (3) the Company’s intent to sell the security or whether it is more likely than not that the Company will be required to sell the debt security before its anticipated recovery. |
Loans and the Allowance for Loan Losses | Loans and the Allowance for Loan Losses Loans are reported at the amount of their outstanding principal, including deferred loan origination fees and costs, reduced by unearned discounts, and the allowance for loan losses. Loan origination fees, net of related direct incremental loan origination costs, are deferred and amortized as an adjustment to yield over the life of the related loans. Unearned discount is recognized as an adjustment to the loan yield, using the interest method over the contractual life of the related loan. When a loan is paid off, the unamortized portion of net fees or unearned discount is recognized as interest income. Loans are considered delinquent when a payment of principal and/or interest becomes past due 30 days following its scheduled payment due date. Loans on which the accrual of interest has been discontinued are designated as non-accrual loans. Accrual of interest income is discontinued when concern exists as to the collectability of principal or interest or typically when a loan becomes over 90 days delinquent. Additionally, when a loan is placed on non-accrual status, all interest previously accrued but not collected is reversed against current period income. Loans are removed from non-accrual when they become less than 90 days past due and when concern no longer exists as to the collectability of principal or interest. Interest collected on non-accruing loans is either applied against principal or reported as income according to management’s judgment as to the collectability of principal. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Under certain circumstances, the Company may restructure the terms of a loan as a concession to a borrower. These restructured loans are generally also considered impaired loans. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. The provision for loan losses and the level of the allowance for loan losses reflects management’s estimate of probable loan losses inherent in the loan portfolio at the balance sheet date. Management uses a systematic process and methodology to establish the allowance for loan losses each quarter. To determine the total allowance for loan losses, an estimate is made by management of the allowance needed for each of the following segments of the loan portfolio: (a) residential mortgage loans, (b) commercial mortgage loans, (c) home equity loans, (d) commercial & industrial loans, and (e) consumer loans. Portfolio segments are further disaggregated into classes of loans. The establishment of the allowance for each portfolio segment is based on a process that evaluates the risk characteristics relevant to each portfolio segment and takes into consideration multiple internal and external factors. Internal factors include, but are not limited to, (a) historic levels and trends in charge-offs, delinquencies, risk ratings, and foreclosures, (b) level and changes in industry, geographic, and credit concentrations, (c) underwriting policies and adherence to such policies, (d) the growth and vintage of the portfolios, and (e) the experience of, and any changes in, lending and credit personnel. External factors include, but are not limited to, (a) conditions and trends in the local and national economy and (b) levels and trends in national delinquent and non-performing loans. The Bank evaluates certain loans individually for specific impairment. A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Loans are selected for evaluation based upon internal risk rating, delinquency status, or non-accrual status. A specific allowance amount is allocated to an individual loan when such loan has been deemed impaired and when the amount of the probable loss is able to be estimated. Estimates of loss may be determined by the present value of anticipated future cash flows, the loan’s observable fair market value, or the fair value of the collateral, if the loan is collateral dependent. Risk characteristics relevant to each portfolio segment are as follows: Residential mortgage and home equity loans – The Bank generally does not originate loans in these segments with a loan-to-value ratio greater than 80%, unless covered by private mortgage insurance, and in all cases not greater than a loan-to-value ratio of 97%. The Bank does not originate subprime loans. Loans in these segments are secured by one-to-four family residential real estate, and repayment is primarily dependent on the credit quality of the individual borrower. Commercial mortgage loans – This includes multi-family properties and construction. The Bank generally does not originate loans in this segment with a loan-to-value ratio greater than 75% . Loans in this segment are secured by owner-occupied and nonowner-occupied commercial real estate, and repayment is primarily dependent on the cash flows of the property (if nonowner-occupied) or of the business (if owner-occupied). Commercial loans – Loans in this segment are made to businesses and are generally secured by equipment, accounts receivable, or inventory, as well as the personal guarantees of the principal owners of the business, and repayment is primarily dependent on the cash flows generated by the business. Consumer loans – Loans in this segment are made to individuals and can be secured or unsecured. Repayment is primarily dependent on the credit quality of the individual borrower. The majority of the Bank’s loans are concentrated in Eastern Massachusetts and New Hampshire and therefore the overall health of the local economy, including unemployment rates, vacancy rates, and consumer spending levels, can have a material effect on the credit quality of all of these portfolio segments. The process to determine the allowance for loan losses requires management to exercise considerable judgment regarding the risk characteristics of the loan portfolio segments and the effect of relevant internal and external factors. The provision for loan losses charged to income is based on management’s judgment of the amount necessary to maintain the allowance at a level to provide for probable inherent loan losses as of the evaluation date. When management believes that the collectability of a loan’s principal balance, or portions thereof, is unlikely, the principal amount is charged against the allowance for loan losses. Recoveries on loans that have been previously charged off are credited to the allowance for loan losses as received. The allowance is an estimate, and ultimate losses may vary from current estimates. As adjustments become necessary, they are reported in the results of operations through the provision for loan losses in the period in which they become known. Residential mortgage loans originated and intended for sale in the secondary market are classified as held for sale at the time of their origination and are carried at the lower of cost or fair value on an individual loan basis. Changes in fair value relating to loans held for sale below the loans cost basis are charged against gain on loans held for sale. Gains and losses on the actual sale of the residential loans are recorded in earnings as net gains (losses) on loans held for sale on the consolidated statements of income. |
Bank Owned Life Insurance | Bank Owned Life Insurance Bank owned life insurance (“BOLI”) represents life insurance on the lives of certain active and former employees who have provided positive consent allowing the Bank to be the beneficiary of such policies. Since the Bank is the primary beneficiary of the insurance policies, increases in the cash value of the policies, as well as insurance proceeds received, are recorded in other noninterest income, and are not subject to income taxes. Applicable regulations generally limit our investment in bank-owned life insurance to 25% of our Tier 1 capital plus our allowance for loan losses. The Bank reviews the financial strength of the insurance carriers prior to the purchase of BOLI and at least annually thereafter. |
Banking Premises and Equipment | Banking Premises and Equipment Land is stated at cost. Buildings, leasehold improvements, and equipment are stated at cost, less accumulated depreciation and amortization, which is computed using the straight-line method over the estimated useful lives of the assets or the terms of the leases, if shorter. The cost of ordinary maintenance and repairs is charged to expense when incurred. |
Leases | Leases The Company leases office space, certain branch locations under noncancelable operating leases, and an ATM location, several of which have renewal options to extend lease terms. Upon commencement of a new lease, the Company will recognize a right of use ("ROU") asset and corresponding lease liability. The Company makes the decision on whether to renew an option to extend a lease by |
Marketing Expense | Marketing Expense Advertising costs are expensed as incurred. |
Other Real Estate Owned | Other Real Estate Owned Other real estate owned (“OREO”) consists of properties formerly pledged as collateral to loans, which have been acquired by the Bank through foreclosure proceedings or acceptance of a deed in lieu of foreclosure. Upon transfer of a loan to foreclosure status, an appraisal is obtained and any excess of the loan balance over the fair value, less estimated costs to sell, is charged against the allowance for loan losses. Expenses and subsequent adjustments to the fair value are treated as other operating expense. |
Goodwill, Core Deposit Intangibles, and Other Intangible Assets | Goodwill, Core Deposit Intangibles, and Other Intangible Assets Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. Core deposit intangible represents a premium paid to acquire the core deposits of an institution and is recorded as an intangible asset. Goodwill and intangible assets that are not amortized are tested for impairment, based on their fair values, at least annually. Identifiable intangible assets that are subject to amortization are also reviewed for impairment based on their fair value. Any impairment is recognized as a charge to earnings and the adjusted carrying amount of the intangible asset becomes its new accounting basis. The remaining useful life of an intangible asset that is being amortized is also evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. Mortgage servicing assets are recognized as separate assets when rights are acquired through purchase or through sale of financial assets with servicing rights retained. The fair value of the servicing rights is determined by estimating the present value of future net cash flows, taking into consideration market loan prepayment speeds, discount rates, servicing costs, and other economic factors. For purposes of measuring impairment, the underlying loans are stratified into relatively homogeneous pools based on predominant risk characteristics which include product type (i.e., fixed or adjustable) and interest rate bands. If the aggregate carrying value of the capitalized mortgage servicing rights for a stratum exceeds its fair value, MSR impairment is recognized in earnings through a valuation allowance for the difference. As the loans are repaid and net servicing revenue is earned, the MSR asset is amortized as an offset to loan servicing income. Servicing revenues are expected to exceed this amortization expense. However, if actual prepayment experience or defaults exceed what was originally anticipated, net servicing revenues may be less than expected and mortgage servicing rights may be impaired. |
Income Taxes | Income Taxes The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, the Commonwealth of Massachusetts, the state of New Hampshire, and other states as required. For the year 2019, the Company will file taxes in Massachusetts, New Hampshire, and Maine. Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Deferred tax assets are reviewed quarterly and reduced by a valuation allowance if, based upon the information available, it is more likely than not that some or all of the deferred tax assets will not be realized. Interest and penalties related to unrecognized tax benefits, if incurred, are recognized as a component of income tax expense. The Tax Cuts and Jobs Act of 2017 was enacted on December 22, 2017. Effective in 2018, the change in tax law reduced the Company’s statutory federal tax rate from 35% to 21%. The Company recorded a one-time non-cash write-down of net deferred tax assets of $3.9 million as these deferred tax assets were required to be re-measured using the new lower tax rate in 2017. |
Fee Revenue | Fee Revenue Wealth management revenues include asset-based revenues (trust and investment advisory fees) that are primarily accrued as earned based upon a percentage of asset values under management, or administration. Also included in wealth management revenues are transaction-based revenues (financial planning fees and other service fees), which are recognized as revenue to the extent that services have been completed. Fee revenue from deposit service charges is generally recognized when earned. |
Pension and Retirement Plans | Pension and Retirement Plans The Company sponsored a defined benefit pension plan (the “Pension Plan”) and a postretirement health care plan covering substantially all employees hired before May 2, 2011. On October 23, 2017, the Company announced its decision to freeze the accrual of benefits for all participants in the Pension Plan, effective as of December 31, 2017. Benefits for the Pension Plan were based primarily on years of service and the employee’s average monthly pay during the five highest consecutive plan years of the employee’s final 10 years. Benefits for the postretirement health care plan are based on years of service. Expense for both of these plans is recognized over the employee’s service life utilizing the projected unit credit actuarial cost method. The Company also sponsors non-qualified retirement programs that provide supplemental retirement benefits to certain current and former executives. Prior to 2016, the Company provided individual non-qualified defined benefit supplemental executive retirement plans (“DB SERPs”) to certain executives. The DB SERPs generally provide for an annual benefit payable in equal monthly installments following the executive’s retirement and continuing for at least the remainder of his or her lifetime, with such annual benefit generally based on the executive’s years of service and his or her highest three consecutive years of base salary and bonus. In 2016, the Company’s Board discontinued the use of DB SERPs for new entrants to the Company’s non-qualified retirement programs. Instead, new entrants are provided with individual non-qualified defined contribution supplemental executive retirement plans (“DC SERPs”). Under the DC SERPs, the Company may contribute an amount equal to 10% of the executive’s base salary and bonus to his or her account under the Company’s non-qualified deferred compensation plan, the Executive Deferred Compensation Plan. Expense for the DB SERPs is recognized over the executive’s service life utilizing the projected unit credit actuarial cost method. Expense for the DC SERPs is recognized as incurred. The Company maintains a Profit Sharing Plan (“PSP”) that provides for deferral of federal and state income taxes on employee contributions allowed under Section 401(k) of federal law. Beginning in 2018, the Company matched employee contributions up to 100% of the first 4% of each participant’s salary, , up from 3% in 2017. Each year, the Company may also make a discretionary contribution to the PSP of up to 4% salary, eligible bonus and eligible incentive. |
Share-Based Compensation | Share-Based Compensation Share-based compensation plans provide for stock option awards, restricted stock awards, nonvested time based share units, and nonvested performance based share units. Compensation expense for nonvested restricted stock awards is recognized over the service period based on the fair value at the date of grant. Awards of nonvested time based share units and nonvested performance share units are valued at the fair market value of the Company’s common stock as of the award date. Nonvested performance share unit compensation expense is based on the most recent performance assumption available and is adjusted as assumptions change. If the goals are not met, vesting does not occur and no compensation cost will be recognized and any recognized compensation costs will be reversed. Stock-based awards that do not require future service are expensed in the year of grant. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Derivatives are recognized as either assets or liabilities on the balance sheet and are measured at fair value. The accounting for changes in the fair value of such derivatives depends on the intended use of the derivative and resulting designation. For derivatives not designated as hedges, changes in fair value of the derivative instruments are recognized in earnings in noninterest income. For derivatives designated as fair value hedges, changes in the fair value of such derivatives are recognized in earnings together with the changes in the fair value of the related hedged item. The net amount, if any, represents hedge ineffectiveness and is reflected in earnings. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is recorded in other comprehensive income (loss) and recognized in earnings when the hedged transaction affects earnings. The ineffective portion of changes in the fair value of cash flow hedges is recognized directly in earnings. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company measures the fair values of its financial instruments in accordance with accounting guidance that requires an entity to base fair value on exit price and maximize the use of observable inputs and minimize the use of unobservable inputs to determine the exit price. ASC 820, “ Fair Value Measurements and Disclosures” Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The type of financial instruments included in Level 1 are highly liquid cash instruments with quoted prices such as government or agency securities, listed equities and money market securities, as well as listed derivative instruments. Level 2 – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these financial instruments includes cash instruments for which quoted prices are available but traded less frequently, derivative instruments whose fair value has been derived using a model where inputs to the model are directly observable in the market, or can be derived principally from or corroborated by observable market data, and instruments that are fair valued using other financial instruments, the parameters of which can be directly observed. Instruments which are generally included in this category are corporate bonds and loans, mortgage whole loans, municipal bonds and over-the-counter derivatives. Level 3 – Instruments that have little to no pricing observability as of the reported date. These financial instruments do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment to estimation. Instruments that are included in this category generally include certain commercial mortgage loans, certain private equity investments, distressed debt, non-investment grade residual interests in securitizations, as well as certain highly structured over-the-counter derivative contracts. |
Earnings per Common Share | Earnings per Common Share Earnings per common share is computed using the two-class method prescribed under ASC Topic 260, “Earnings Per Share.” ASC Topic 260 provides that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. We have determined that our outstanding non-vested stock awards are participating securities. Under the two-class method, basic earnings per common share is computed by dividing net earnings allocated to common stock by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of common stock equivalents. A reconciliation of the weighted-average shares used in calculating basic earnings per common share and the weighted average common shares used in calculating diluted earnings per common share for the reported periods is provided in Note 22 - Earnings Per Share. |
Subsequent Events | Subsequent Events Management has reviewed events occurring through March 16, 2020, the date the consolidated financial statements were issued and determined that no subsequent events occurred requiring adjustment to or disclosure in these financial statements. |
Recently Issued and Adopted Accounting Standards | Recently Issued and Adopted Accounting Standards Accounting Standards Update 2018-16 - Inclusion of the Secured Overnight Financing Rate (“SOFR”) Overnight Index Swap (“OIS”) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes 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 23 – DERIVATIVE AND HEDGING ACTIVITIES Accounting Standards Update No. 2016-02 - Leases Targeted Improvements See note 17 – commitments and contingencies. Accounting Standards Update No. 2014-09 - Revenue from Contracts with Customers 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 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) | 12 Months Ended |
Dec. 31, 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 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 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 accompanying consolidated balance sheets according to management’s intent. The carrying amounts of securities and their approximate fair values were as follows: December 31, 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 $ 38,000 $ — $ (152 ) $ 37,848 $ 75,004 $ — $ (965 ) $ 74,039 Mortgage-backed securities 103,109 231 (858 ) 102,482 92,271 118 (3,121 ) 89,268 Corporate debt securities — — — — 5,015 — (159 ) 4,856 Total available for sale securities $ 141,109 $ 231 $ (1,010 ) $ 140,330 $ 172,290 $ 118 $ (4,245 ) $ 168,163 Held to maturity securities U.S. GSE obligations $ 5,000 $ — — $ 5,000 $ 32,571 $ — $ (238 ) $ 32,333 Mortgage-backed securities 161,759 2,751 (111 ) 164,399 168,118 134 (2,290 ) 165,962 Corporate debt securities 6,980 116 — 7,096 6,972 — (107 ) 6,865 Municipal securities 84,433 3,252 (66 ) 87,619 75,208 1,297 (355 ) 76,150 Total held to maturity securities $ 258,172 $ 6,119 $ (177 ) $ 264,114 $ 282,869 $ 1,431 $ (2,990 ) $ 281,310 Total $ 399,281 $ 6,350 $ (1,187 ) $ 404,444 $ 455,159 $ 1,549 $ (7,235 ) $ 449,473 |
Schedule of Amortized Cost and Fair Value of Debt Securities, Aggregated By Earlier of Guaranteed Call Date or Contractual Maturity | The amortized cost and fair value of debt investments, aggregated by contractual maturity, are shown below. Maturities of mortgage-backed securities do not take into consideration scheduled amortization or prepayments. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Within One Year After One, But Within Five Years After Five, But Within Ten Years After Ten Years Total Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value Amortized Cost Fair Value At December 31, 2019 (dollars in thousands) Available for sale securities U.S. GSE obligations $ 5,000 $ 4,997 $ 20,000 $ 19,939 $ 5,000 $ 4,934 $ 8,000 $ 7,978 $ 38,000 $ 37,848 Mortgage-backed securities — — 37 38 36,393 35,997 66,679 66,447 103,109 102,482 Corporate debt securities — — — — — — — — — — Total available for sale securities $ 5,000 $ 4,997 $ 20,037 $ 19,977 $ 41,393 $ 40,931 $ 74,679 $ 74,425 $ 141,109 $ 140,330 Held to maturity securities U.S. GSE obligations $ 5,000 $ 5,000 $ — $ — $ — $ — $ — $ — $ 5,000 $ 5,000 Mortgage-backed securities — — 2 2 48,088 49,117 113,669 115,280 161,759 164,399 Corporate debt securities — — 6,980 7,096 — — — — 6,980 7,096 Municipal securities 3,270 3,291 10,606 10,902 45,201 47,523 25,356 25,903 84,433 87,619 Total held to maturity securities $ 8,270 $ 8,291 $ 17,588 $ 18,000 $ 93,289 $ 96,640 $ 139,025 $ 141,183 $ 258,172 $ 264,114 Total $ 13,270 $ 13,288 $ 37,625 $ 37,977 $ 134,682 $ 137,571 $ 213,704 $ 215,608 $ 399,281 $ 404,444 |
Gross Unrealized Losses of Aggregated by Investment Category and Length of Time that Individual Securities have been in Continuous Loss Position | The following tables show the Company’s securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous loss position: December 31, 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 $ 12,912 $ (88 ) $ 24,936 $ (64 ) $ 37,848 $ (152 ) Mortgage-backed securities 33,381 (265 ) 50,766 (593 ) 84,147 (858 ) Corporate debt securities — — — — — — Total available for sale securities $ 46,293 $ (353 ) $ 75,702 $ (657 ) $ 121,995 $ (1,010 ) Held to maturity securities U.S. GSE obligations $ — $ — $ 5,000 $ — $ 5,000 $ — Mortgage-backed securities 14,838 (27 ) 12,928 (84 ) 27,766 (111 ) Corporate debt securities — — — — — — Municipal securities 4,934 (66 ) — — 4,934 (66 ) Total held to maturity securities $ 19,772 $ (93 ) $ 17,928 $ (84 ) $ 37,700 $ (177 ) Total temporarily impaired securities $ 66,065 $ (446 ) $ 93,630 $ (741 ) $ 159,695 $ (1,187 ) 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 ) |
Summary of Gains (Losses) from Sale of Investment Securities | The following table sets forth information regarding sales of investment securities and the resulting gains or losses from such sales: For the Year Ended December 31, 2019 2018 2017 (dollars in thousands) Amortized cost of securities sold $ 26,631 $ 700 $ 77,372 Gain/(loss) realized on securities sold (79 ) 2 (3 ) Net proceeds from securities sold $ 26,552 $ 702 $ 77,369 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans Outstanding by Category | Loans outstanding are detailed by category as follows: December 31, 2019 December 31, 2018 (dollars in thousands) Residential mortgage Mortgages - fixed rate $ 430,877 $ 293,267 Mortgages - adjustable rate 467,139 309,656 Construction 17,374 — Deferred costs net of unearned fees 2,176 1,408 Total residential mortgages 917,566 604,331 Commercial mortgage Mortgages - nonowner occupied 870,047 654,394 Mortgages - owner occupied 114,095 59,335 Construction 76,288 44,146 Deferred costs net of unearned fees 144 82 Total commercial mortgages 1,060,574 757,957 Home equity Home equity - lines of credit 73,880 63,421 Home equity - term loans 6,555 5,665 Deferred costs net of unearned fees 240 250 Total home equity 80,675 69,336 Commercial & industrial Commercial & industrial 133,337 93,728 Deferred costs (fees) net of unearned fees (101 ) (16 ) Total commercial & industrial 133,236 93,712 Consumer Secured 33,453 33,252 Unsecured 1,199 1,171 Deferred costs net of unearned fees 25 13 Total consumer 34,677 34,436 Total loans $ 2,226,728 $ 1,559,772 |
Non-performing Loans Disaggregated by Loan Category | The following tables set forth information regarding non-performing loans disaggregated by loan category: December 31, 2019 . Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Total (dollars in thousands) Non-performing loans: Non-accrual loans $ 1,298 $ 2,800 $ 12 $ 50 $ — $ 4,160 Loans past due >90 days, but still accruing 527 486 — 251 — 1,264 Troubled debt restructurings 99 — — 128 — 227 Total $ 1,924 $ 3,286 $ 12 $ 429 $ — $ 5,651 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: December 31, 2019 Residential Mortgages Home Equity Consumer (dollars in thousands) Credit risk profile based on payment activity: Performing $ 915,642 $ 80,663 $ 34,677 Non-performing 1,924 12 — Total $ 917,566 $ 80,675 $ 34,677 Commercial Mortgages Commercial & Industrial Credit risk profile by internally assigned grade: 1-6 (Pass) $ 1,050,037 $ 123,900 7 (Special Mention) 7,360 4,289 8 (Substandard) 3,177 5,047 9 (Doubtful) — — 10 (Loss) — — Total $ 1,060,574 $ 133,236 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: December 31, 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 $ 8,710 $ 1,089 $ 1,047 $ 10,846 $ 906,720 $ 917,566 Commercial Mortgages 811 — 3,161 3,972 1,056,602 1,060,574 Home Equity 57 12 — 69 80,606 80,675 Commercial & Industrial 272 226 251 749 132,487 133,236 Consumer loans 4 5 — 9 34,668 34,677 Total $ 9,854 $ 1,332 $ 4,459 $ 15,645 $ 2,211,083 $ 2,226,728 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 is information pertaining to impaired loans: For the Year Ended December 31, 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 3,161 1,385 4,376 — 35 Residential mortgage 765 691 940 — 5 Home equity 93 96 133 — 1 Total 4,019 2,172 5,449 — 41 With required reserve recorded: Commercial and industrial 128 59 167 87 — Commercial mortgage — — — — — Residential mortgage — — — — — Home equity — — — — — Total 128 59 167 87 — Total: Commercial and industrial 128 59 167 87 — Commercial mortgage 3,161 1,385 4,376 — 35 Residential mortgage 765 691 940 — 5 Home equity 93 96 133 — 1 Total $ 4,147 $ 2,231 $ 5,616 $ 87 $ 41 For the Year Ended December 31, 2018 Carrying Value Average Carrying Value Unpaid Principal Balance Related Allowance Interest Income Recognized (dollars in thousands) With no required reserve recorded: Commercial and industrial $ 6 $ 17 $ 6 $ — $ 1 Commercial mortgage — — — — — Residential mortgage 634 647 786 — 4 Home equity 100 104 135 — 1 Total 740 768 927 — 6 With required reserve recorded: Commercial and industrial — — — — — Commercial mortgage — — — — — Residential mortgage — — — — — Home equity — — — — — Total — — — — — Total: Commercial and industrial 6 17 6 — 1 Commercial mortgage — — — — — Residential mortgage 634 647 786 — 4 Home equity 100 104 135 — 1 Total $ 740 $ 768 $ 927 $ — $ 6 For the Year Ended December 31, 2017 Carrying Value Average Carrying Value Unpaid Principal Balance Related Allowance Interest Income Recognized (dollars in thousands) With no required reserve recorded: Commercial and industrial $ 29 $ 36 $ 29 $ — $ 2 Commercial mortgage 213 224 227 — 3 Residential mortgage 904 931 1,103 — — Home equity 86 91 116 — — Total 1,232 1,282 1,475 — 5 With required reserve recorded: Commercial and industrial — — — — — Commercial mortgage — — — — — Residential mortgage 64 66 64 93 1 Home equity — — — — — Total 64 66 64 93 1 Total: Commercial and industrial 29 36 29 — 2 Commercial mortgage 213 224 227 — 3 Residential mortgage 968 997 1,167 93 1 Home equity 86 91 116 — — Total $ 1,296 $ 1,348 $ 1,539 $ 93 $ 6 |
Summary of Changes in Allowance for Loan Losses Disaggregated by Loan Type | The following tables contain changes in the allowance for loan losses disaggregated by loan type for the periods noted: For the Year Ended December 31, 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 — (1,270 ) — (338 ) (48 ) — (1,656 ) Recoveries — — — 53 11 — 64 Provision for (Release of) 195 2,549 (56 ) 258 (29 ) 87 3,004 Balance at December 31, 2019 $ 5,141 $ 10,905 $ 461 $ 1,388 $ 198 $ 87 $ 18,180 For the Year Ended December 31, 2018 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Impaired Total (dollars in thousands) Allowance for loan losses: Balance at December 31, 2017 $ 5,047 $ 8,289 $ 630 $ 946 $ 315 $ 93 $ 15,320 Charge-offs — — — (73 ) (36 ) — (109 ) Recoveries — — — 48 7 — 55 Provision for (Release of) (101 ) 1,337 (113 ) 494 (22 ) (93 ) 1,502 Balance at December 31, 2018 $ 4,946 $ 9,626 $ 517 $ 1,415 $ 264 $ — $ 16,768 For the Year Ended December 31, 2017 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Impaired Total (dollars in thousands) Allowance for loan losses: Balance at December 31, 2016 $ 4,898 $ 8,451 $ 651 $ 807 $ 264 $ 190 $ 15,261 Charge-offs — — — (284 ) (39 ) — (323 ) Recoveries — — — 13 7 — 20 Provision for (Release of) 149 (162 ) (21 ) 410 83 (97 ) 362 Balance at December 31, 2017 $ 5,047 $ 8,289 $ 630 $ 946 $ 315 $ 93 $ 15,320 |
Summary of Allowance for Loan Losses and Related Loans Receivable Disaggregated by Impairment Method | The following tables contain period-end balances of the allowance for loan losses and related loans receivable disaggregated by impairment method: December 31, 2019 Residential Mortgages Commercial Mortgages Home Equity Commercial & Industrial Consumer Total (dollars in thousands) Allowance for loan losses Individually evaluated for impairment $ — $ — $ — $ 87 $ — $ 87 Collectively evaluated for impairment 5,141 10,905 461 1,388 198 18,093 Total $ 5,141 $ 10,905 $ 461 $ 1,475 $ 198 $ 18,180 Loans receivable Individually evaluated for impairment $ 764 $ 3,161 $ 92 $ 128 $ — $ 4,145 Collectively evaluated for impairment 916,802 1,057,413 80,583 133,108 34,677 2,222,583 Total $ 917,566 $ 1,060,574 $ 80,675 $ 133,236 $ 34,677 $ 2,226,728 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 |
Banking Premises and Equipment
Banking Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Summary of Cost and Accumulated Depreciation and Amortization of Property, Leasehold Improvements and Equipment | A summary of the cost and accumulated depreciation and amortization of property, leasehold improvements, and equipment is presented below: December 31, Estimated 2019 2018 Useful Lives (dollars in thousands) Land $ 1,116 $ 1,116 Building and leasehold improvements 17,817 12,175 3-30 years Equipment, including vaults 13,686 11,613 3-20 years Work in process 550 84 Subtotal 33,169 24,988 Accumulated depreciation and amortization (18,413 ) (16,410 ) Total $ 14,756 $ 8,578 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 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, 2016 $ 842 $ (30 ) $ 812 Mortgage servicing rights capitalized 132 — 132 Amortization charged against servicing income (151 ) — (151 ) Change in impairment reserve — — — Balance at December 31, 2017 $ 823 $ (30 ) $ 793 Mortgage servicing rights capitalized 20 — 20 Amortization charged against servicing income (147 ) — (147 ) Change in impairment reserve (30 ) 30 — Balance at December 31, 2018 $ 666 $ — $ 666 Mortgage servicing rights acquired as a result of the merger 334 — 334 Mortgage servicing rights capitalized 618 — 618 Amortization charged against servicing income (271 ) — (271 ) Change in impairment reserve — (26 ) (26 ) Balance at December 31, 2019 $ 1,347 $ (26 ) $ 1,321 |
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) 2020 $ 202 2021 166 2022 135 2023 110 2024 89 Thereafter 619 Total $ 1,321 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Summary of Deposits | Deposits are summarized as follows: December 31, 2019 December 31, 2018 (dollars in thousands) Demand deposits (non-interest bearing) $ 630,593 $ 494,492 Interest bearing checking 450,098 431,702 Money market 181,406 135,585 Savings 914,499 628,212 Retail certificates of deposit under $100,000 56,602 36,223 Retail certificates of deposit $100,000 or greater 118,596 57,692 Wholesale certificates of deposit 7,084 27,504 Total deposits $ 2,358,878 $ 1,811,410 |
Scheduled Maturities of Certificates of Deposits | Certificates of deposit had the following schedule of maturities: December 31, 2019 December 31, 2018 (dollars in thousands) Less than 3 months remaining $ 52,883 $ 24,219 3 to 5 months remaining 47,701 17,486 6 to 11 months remaining 38,981 37,987 12 to 23 months remaining 31,501 28,529 24 to 47 months remaining 9,448 9,652 48 months or more remaining 1,768 3,546 Total certificates of deposit $ 182,282 $ 121,419 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Information Relating to Short-term Borrowings | Information relating to short-term borrowings is presented below: For the Year Ended December 31, 2019 2018 (dollars in thousands) FHLB of Boston short-term advances Ending balance $ 135,691 $ 90,000 Average daily balance 84,414 15,183 Highest month-end balance 135,691 90,000 Weighted average interest rate 2.31 % 2.47 % |
Schedule of Information Relating to Long-term Borrowings | Information relating to long-term borrowings is presented below: December 31, 2019 December 31, 2018 Amount Rate Amount Rate (dollars in thousands) FHLB of Boston long-term advances Due 09/01/2020; amortizing $ — 0.00 % $ 3,409 1.94 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The components of income tax expense were as follows: For the Year Ended December 31, 2019 2018 2017 (dollars in thousands) Current Federal $ 5,954 $ 5,524 $ 8,446 State 2,597 2,404 2,225 8,551 7,928 10,671 Deferred Federal (63 ) (490 ) 2,948 State 173 (231 ) (261 ) Total deferred 110 (721 ) 2,687 Total income tax expense $ 8,661 $ 7,207 $ 13,358 |
Reconciliation of Total Income Tax Provision, Calculated at Statutory Federal Income Tax Expense in Consolidated Statements of Income | The following is a reconciliation of the total income tax provision, calculated at statutory federal income tax rates, to the income tax provision in the consolidated statements of income: For the Year Ended December 31, 2019 Rate 2018 Rate 2017 Rate (dollars in thousands) Provision at statutory rates $ 7,123 21.00 % $ 6,528 21.00 % $ 9,861 35.00 % Increase/(decrease) resulting from: State tax, net of federal tax benefit 2,188 6.45 1,717 5.52 1,277 4.53 Tax-exempt income (599 ) (1.77 ) (580 ) (1.87 ) (1,079 ) (3.83 ) ESOP dividends (124 ) (0.37 ) (127 ) (0.41 ) (216 ) (0.77 ) Bank owned life insurance (129 ) (0.38 ) (140 ) (0.45 ) (205 ) (0.73 ) Benefit from stock compensation (150 ) (0.44 ) (168 ) (0.54 ) (190 ) (0.67 ) Non-deductible Acquisition Costs 236 0.70 — — — — Impact of Tax Cuts and Jobs Act — — — — 3,870 13.74 Other 116 0.34 (23 ) (0.07 ) 40 0.15 Total income tax expense $ 8,661 25.53 % $ 7,207 23.18 % $ 13,358 47.42 % |
Summary of Net Deferred Tax Asset | The Company’s 2019 and 2018 net deferred tax assets were measured using a 27.86% and 28.11% tax rate, respectively, and consisted of the following components: December 31, 2019 December 31, 2018 (dollars in thousands) Gross deferred tax assets Allowance for loan losses $ 5,029 $ 4,715 Accrued retirement benefits 1,592 2,082 Unrealized losses on AFS securities 171 957 Incentive compensation 1,248 1,189 Equity based compensation 1,034 849 Lease Liability 9,765 333 ESOP dividends 165 169 Loss carryforwards as a result of the Optima merger 877 — Intangibles (merger related) 472 — Other 252 155 Total gross deferred tax assets 20,605 10,449 Gross deferred tax liabilities Deferred loan origination costs (911 ) (459 ) Depreciation of premises and equipment (1,021 ) (678 ) Right of Use Asset (9,356 ) — Mortgage servicing rights (368 ) (187 ) Goodwill (113 ) (114 ) Derivative transactions (607 ) (294 ) Total gross deferred tax liabilities (12,376 ) (1,732 ) Net deferred tax asset $ 8,229 $ 8,717 |
Pension and Retirement Plans (T
Pension and Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Projected Benefit Obligations and Funded Status | Projected benefit obligations and funded status were as follows: Pension Plan Supplemental Retirement Plan 2019 2018 2019 2018 (dollars in thousands) Change in projected benefit obligation Obligation at beginning of year $ 40,522 $ 43,943 $ 8,830 $ 9,204 Service cost — — 283 354 Interest cost 1,680 1,557 349 309 Actuarial loss/(gain) 4,670 (3,659 ) 770 (499 ) Benefits paid (1,471 ) (1,319 ) (610 ) (538 ) Obligation at end of year 45,401 40,522 9,622 8,830 Change in plan assets Fair value at beginning of year 42,648 45,247 — — Actual return on plan assets 8,954 (1,280 ) — — Employer contribution — — 610 538 Benefits paid (1,471 ) (1,319 ) (610 ) (538 ) Fair value at end of year 50,131 42,648 — — Funded status at end of year $ 4,730 $ 2,126 $ (9,622 ) $ (8,830 ) Projected benefit obligations and funded status were as follows: Postretirement Healthcare Plan 2019 2018 (dollars in thousands) Change in projected benefit obligation Obligation at beginning of year $ 598 $ 617 Service cost 25 23 Interest cost 25 22 Actuarial loss/(gain) 76 (30 ) Benefits paid (35 ) (34 ) Obligation at end of year 689 598 Change in plan assets Fair value at beginning of year — — Actual return on plan assets — — Employer contribution 35 33 Benefits paid (35 ) (33 ) Fair value at end of year — — Funded status at end of year $ (689 ) $ (598 ) |
Schedule of Amounts Recognized in Consolidated Balance Sheets | Amounts recognized in the consolidated balance sheets consisted of: Pension Plan Supplemental Retirement Plan 2019 2018 2019 2018 (dollars in thousands) Other assets/(liabilities) $ 4,730 $ 2,126 $ (9,622 ) $ (8,830 ) Amounts recognized in the consolidated balance sheets consisted of: Postretirement Healthcare Plan 2019 2018 (dollars in thousands) Other liabilities $ (689 ) $ (598 ) |
Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss | Amounts recognized in accumulated other comprehensive loss consisted of: Pension Plan Supplemental Retirement Plan 2019 2018 2019 2018 (dollars in thousands) Net actuarial loss/(gain) $ 3,709 $ 5,427 $ 1,128 $ 358 Prior service (benefit) (7 ) (12 ) — — Total $ 3,702 $ 5,415 $ 1,128 $ 358 Amounts recognized in accumulated other comprehensive loss consisted of: Postretirement Healthcare Plan 2019 2018 (dollars in thousands) Net actuarial (gain)/loss $ (34 ) $ (113 ) Prior service cost — — Total $ (34 ) $ (113 ) |
Certain Disaggregated Information to Retirement Plans | Certain disaggregated information related to our retirement plans were as follows: Pension Plan Supplemental Retirement Plan 2019 2018 2019 2018 (dollars in thousands) Projected benefit obligation $ 45,401 $ 40,522 $ 9,622 $ 8,830 Accumulated benefit obligation 45,401 40,522 9,207 8,567 Fair value of plan assets 50,131 42,648 — — Funded status at end of year 4,730 2,126 (9,622 ) (8,830 ) |
Components of Net Periodic Benefit Cost and Amounts Recognized in Other Comprehensive Income/ (Loss) | The components of net periodic benefit cost and amounts recognized in other comprehensive income/ (loss) were as follows: Pension Plan Supplemental Retirement Plan 2019 2018 2019 2018 (dollars in thousands) Net periodic benefit cost Service cost $ — $ — $ 283 $ 354 Interest cost 1,680 1,557 349 309 Expected return on assets (2,721 ) (2,891 ) — — Amortization of prior service credit (4 ) (4 ) — — Amortization of net actuarial loss/(gain) 154 106 — 4 Net periodic benefit cost (891 ) (1,232 ) 632 667 Amounts recognized in other comprehensive income/( loss) Net actuarial loss/(gain) (1,563 ) 512 770 (499 ) Amortization of prior service credit 4 4 (4 ) Amortization of net actuarial gain (154 ) (106 ) — — Total recognized in other comprehensive income/( loss) (1,713 ) 410 770 (503 ) Total recognized in net periodic benefit cost and other comprehensive income/( loss) $ (2,604 ) $ (822 ) $ 1,402 $ 164 The components of net periodic benefit cost and amounts recognized in other comprehensive income were as follows: Postretirement Healthcare Plan 2019 2018 (dollars in thousands) Net periodic benefit cost Service cost $ 25 $ 23 Interest cost 25 22 Expected return on assets — — Amortization of prior service credit — — Amortization of net actuarial gain (3 ) — Net periodic benefit cost 47 45 Amounts recognized in other comprehensive income/( loss) Net actuarial (gain) loss 76 (30 ) Amortization of prior service credit — — Amortization of net actuarial gain 3 — Total recognized in other comprehensive income/( loss) 79 (30 ) Total recognized in net periodic benefit cost and other comprehensive income/( loss) $ 126 $ 15 |
Schedule of Weighted-average Assumptions Used to Determine Projected Benefit Obligations and Net Periodic Benefit Cost | Weighted-average assumptions used to determine projected benefit obligations are as follows: Pension Plan Supplemental Retirement Plan 2019 2018 2019 2018 Discount rate 3.22 % 4.23 % 3.04 % 4.10 % Rate of compensation increase N/A N/A 4.00 % 4.00 % Weighted-average assumptions used to determine net periodic benefit cost are as follows: Pension Plan Supplemental Retirement Plan 2019 2018 2019 2018 Discount rate 4.23 % 3.58 % 4.10 % 3.39 % Expected long-term return on plan assets 6.50 % 6.50 % N/A N/A Rate of compensation increase N/A N/A 4.00 % 4.00 % Weighted-average assumptions used to determine projected benefit obligations are as follows: Postretirement Healthcare Plan 2019 2018 Discount rate 3.26 % 4.22 % Rate of compensation increase N/A N/A Weighted-average assumptions used to determine net periodic benefit cost are as follows: Postretirement Healthcare Plan 2019 2018 Discount rate 4.22 % 3.58 % Expected long-term return on plan assets N/A N/A Rate of compensation increase N/A N/A |
Schedule of Pension Plan Weighted-average Asset Allocations by Asset | The Company’s Pension Plan weighted-average asset allocations by asset category were as follows: December 31, 2019 2018 Equity securities 53 % 60 % Debt securities 36 35 Other 3 1 Cash and equivalents 8 4 Total 100 % 100 % |
Summary of Various Categories of Pension Plan Assets | The following table summarizes the various categories of the Pension Plan’s assets: Fair Value as of December 31, 2019 Level 1 Level 2 Level 3 Total (dollars in thousands) Asset category Cash and cash equivalents $ 4,834 $ — $ — $ 4,834 Fixed Income — 7,197 — 7,197 Equity securities Common Stock Large cap core 17,180 — — 17,180 Mid cap core — — — — Small cap core 2,627 — — 2,627 Mutual funds Domestic Equity 3,931 — — 3,931 International 3,650 — — 3,650 Domestic Fixed Income 10,712 10,712 Preferred Stock — — — — Total $ 42,934 $ 7,197 $ — $ 50,131 |
Information to Retirement Plans with Accumulated Benefit Obligation in Excess of Plan Assets | Information for retirement plans with an accumulated benefit obligation in excess of plan assets: Postretirement Healthcare Plan 2019 2018 (dollars in thousands) Projected benefit obligation $ 689 $ 598 Accumulated benefit obligation 689 598 Fair value of plan assets — — |
Schedule of Assumed Health Care Cost Trend Rates | Assumed health care cost trend rates are as follows: Postretirement Healthcare Plan 2019 2018 Health care cost trend rate assumed for next year 4.00 % 4.00 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.00 % 4.00 % Year that the rate reaches the ultimate trend rate 2019 2018 |
Schedule of Effect on One-percentage-point Change in Assumed Health Care Cost Trend Rates | A one-percentage-point change in assumed health care cost trend rates would have the following effects: One Percentage Point Increase Decrease (dollars in thousands) Effect on total service and interest cost $ — $ — Effect on postretirement benefit obligation 2 (2 ) |
Schedule of Benefits Expected to be Paid in the Next Ten Years | Benefits expected to be paid in the next ten years are as follows: Pension Plan Supplemental Retirement Plan Postretirement Healthcare Plan Total (dollars in thousands) Year-ended December 31, 2020 $ 1,751 $ 594 $ 30 $ 2,375 2021 1,813 591 30 2,434 2022 1,948 609 31 2,588 2023 2,061 605 31 2,697 2024 2,135 602 31 2,768 2025-2029 inclusive 11,784 2,916 166 14,866 Ten year total $ 21,492 $ 5,917 $ 319 $ 27,728 |
Schedule of Estimated Amounts That will be Amortized from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost | The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost during 2019 are as follows: Pension Plan Supplemental Retirement Plan Postretirement Healthcare Plan Total (dollars in thousands) Prior service cost $ (4 ) $ — $ — $ (4 ) Net (gain)/loss — — — — Total $ (4 ) $ — $ — $ (4 ) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Stock Options Transactions and Changes | A summary of stock option transactions for the year ended December 31, 2018 is presented below: 2019 2018 Number of Options Weighted Average Exercise Price Number of Options Weighted Average Exercise Price Stock Options Outstanding at beginning of year — $ — 16,377 $ 29.21 Granted — — — — Forfeited — — — — Expired — — (2,600 ) 29.21 Exercised — — (13,777 ) 29.21 Outstanding at end of year — $ — — $ — Exercisable at end of year — $ — — $ — |
Summary of Non-vested Restricted Shares Outstanding | A summary of restricted stock transactions for the periods of December 31, 2019 and 2018, and changes during the years ended on those dates, is presented below 2019 2018 Number of Shares Weighted Average Grant Value Number of Shares Weighted Average Grant Value Restricted stock Non-vested at beginning of year 41,311 $ 65.10 43,240 $ 53.13 Granted 11,330 75.67 17,373 80.43 Vested (14,642 ) 60.55 (15,760 ) 50.10 Forfeited (1,878 ) 65.33 (3,542 ) 60.84 Non-vested at end of year 36,121 $ 70.25 41,311 $ 65.10 |
Schedule of Amounts Recognized in Consolidated Income Statement for Restricted Stock Awards, Time Based Restricted Stock Units and Performance Based Restricted Stock Units | The following table presents the amounts recognized in the consolidated income statement for restricted stock awards, time-based restricted stock units, and performance-based restricted stock units: December 31, 2019 2018 2017 (dollars in thousands) Share-based compensation expense $ 2,632 $ 2,592 $ 1,045 Related income tax benefit $ 733 $ 729 $ 427 |
Performance-Based Restricted Stock Units | |
Summary of Non-vested Restricted Stock Units Outstanding | A summary of non-vested performance-based restricted stock units outstanding as of December 31, 2019 and 2018, and changes during the years ended on those dates, is presented below 2019 2018 Number of Units Weighted Average Grant Value Number of Units Weighted Average Grant Value Performance-based restricted stock units Non-vested at beginning of year 41,411 $ 66.39 21,613 $ 56.05 Granted 28,542 73.00 23,511 76.56 Vested (Performance achieved) (12,697 ) 46.00 — — Forfeited — — (3,713 ) 70.68 Expired (Performance not achieved) — — — — Non-vested at end of year 57,256 $ 72.82 41,411 $ 66.39 |
Time Based Restricted Stock Units | |
Summary of Non-vested Restricted Stock Units Outstanding | A summary of nonvested time based restricted stock units outstanding as of December 31, 2019 and 2018, and changes during the years ended on those dates, is presented below: 2019 2018 Number of Shares Weighted Average Grant Value Number of Shares Weighted Average Grant Value Time-based restricted stock units Non-vested at beginning of year 6,777 $ 76.56 — $ — Granted 8,132 73.00 7,839 76.56 Vested (2,251 ) 76.56 (225 ) 76.56 Forfeited — — (837 ) 76.56 Non-vested at end of year 12,658 $ 74.27 6,777 $ 76.56 |
Financial Instruments with Of_2
Financial Instruments with Off-Balance-Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 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 included the following: December 31, 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 $ 428,020 $ 368,410 Origination of new loans 24,413 24,505 Standby letters of credit 9,150 8,752 Financial instruments whose notional amount exceeds the amount of credit risk: Commitments to sell residential mortgage loans 3,909 — |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [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: December 31, 2019 Operating Leases Balance Sheet Location (dollars in thousands) Right-of-use asset $ 33,587 Right-of-use asset operating leases Lease liability $ 35,054 Operating lease 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: Twelve Months Ended December 31, 2019 (dollars in thousands) Operating lease cost $ 5,280 Short-term lease cost — Variable lease cost (Cost excluded from lease payments) 2 Sublease income (64 ) Total Operating Lease Cost $ 5,218 Other Information Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases $ 5,027 Operating Lease - Operating Cash Flows (Liability reduction) 3,868 Right-of-use assets obtained in exchange for new operating lease liabilities 37,728 Weighted average lease term - operating leases 8.15 Years Weighted average discount rate - operating leases 3.39 % |
Schedule of Total Minimum Lease Payments Due in Future Periods under Lease Agreements | The total minimum lease payments due in future periods under these agreements in effect at December 31, 2019 and December 31, 2018 were as follows: Year Ended Future Minimum December 31, 2019 Lease Payments (dollars in thousands) 2020 $ 5,478 2021 5,523 2022 5,371 2023 5,021 2024 4,355 Thereafter 14,553 Total minimum lease payments 40,301 Less: interest (5,247 ) Total lease liability $ 35,054 Year Ended Future Minimum December 31, 2018 Lease Payments (dollars in thousands) 2019 $ 4,448 2020 4,661 2021 4,662 2022 4,553 2023 4,455 Thereafter 17,128 Total minimum lease payments $ 39,907 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Minimum Capital Requirements Considered Well Capitalized by FRB and FDIC | The Company’s and the Bank’s actual and required capital measures were as follows: Actual Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer (1) Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) At December 31, 2019 Cambridge Bancorp: Total capital (to risk-weighted assets) $ 272,727 13.6 % $ 210,342 10.5 % N/A N/A Tier I capital (to risk-weighted assets) 254,497 12.7 % 170,277 8.5 % N/A N/A Common equity tier I capital (to risk-weighted assets) 254,497 12.7 % 140,228 7.0 % N/A N/A Tier I capital (to average assets) 254,497 9.0 % 113,365 4.0 % N/A N/A Cambridge Trust Company: Total capital (to risk-weighted assets) $ 271,034 13.5 % $ 210,341 10.5 % $ 200,325 10.0 % Tier I capital (to risk-weighted assets) 252,804 12.6 % 170,276 8.5 % 160,260 8.0 % Common equity tier I capital (to risk-weighted assets) 252,804 12.6 % 140,227 7.0 % 130,211 6.5 % Tier I capital (to average assets) 252,804 8.9 % 113,364 4.0 % 141,705 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 Income (Tables)
Other Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income And Expenses [Abstract] | |
Schedule of Components of Other Income | The components of other income were as follows: For the Year Ended December 31, 2019 2018 2017 (dollars in thousands) Safe deposit box income $ 333 $ 342 $ 348 Loan fee income 1,030 358 473 Miscellaneous income 564 569 334 Total other income $ 1,927 $ 1,269 $ 1,155 |
Other Operating Expenses (Table
Other Operating Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income And Expenses [Abstract] | |
Components of Other Operating Expenses | The components of other operating expenses were as follows: For the Year Ended December 31, 2019 2018 2017 (dollars in thousands) Director fees $ 527 $ 724 $ 576 Charitable donations & sponsorships 575 518 432 Printing and supplies 437 272 251 Travel and entertainment 579 456 339 Dues and memberships 412 293 260 Physical security 86 131 172 Postage and mailing 246 201 229 Miscellaneous expense 337 (331 ) 885 Total other operating expenses $ 3,199 $ 2,264 $ 3,144 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Summary of Other Comprehensive Income | The Company’s other comprehensive income consists of unrealized gains or losses on securities held at year-end classified as available for sale and the component of the unfunded retirement liability computed in accordance with the requirements of ASC 715, “ Compensation – Retirement Benefits. For the Year Ended December 31, 2019 For the Year Ended December 31, 2018 For the Year Ended December 31, 2017 Before Tax Amount Tax (Expense) or Benefit Net-of- tax Amount Before Tax Amount Tax (Expense) or Benefit Net-of- tax Amount Before Tax Amount Tax (Expense) or Benefit Net-of- tax Amount (dollars in thousands) Unrealized (losses)/gains on available for sale securities Unrealized holding (losses)/gains arising during the period $ 3,267 $ (767 ) $ 2,500 $ (231 ) $ (11 ) $ (242 ) $ 187 $ (59 ) $ 128 Reclassification adjustment for (gains)/losses recognized in net income 81 (19 ) 62 (2 ) — (2 ) 3 (2 ) 1 Derivatives Change in interest rate contracts 1,134 (313 ) 821 1,045 (294 ) 751 — — — Defined benefit retirement plans Net change in retirement liability 864 (241 ) 623 124 (35 ) 89 6,545 (2,674 ) 3,871 Total Other Comprehensive Income/(Loss) $ 5,346 $ (1,340 ) $ 4,006 $ 936 $ (340 ) $ 596 $ 6,735 $ (2,735 ) $ 4,000 |
Summary of Reclassifications out of Accumulated Other Comprehensive Income ("AOCI") | Reclassifications out of accumulated other comprehensive income (“AOCI”) are presented below: For the Year Ended December 31, Details about Accumulated Other Comprehensive Income (Loss) Components 2019 2018 2017 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 $ (3 ) (Loss) gain on disposition of investment securities Tax benefit or (expense) 19 — 2 Provision for income taxes Net of tax $ (62 ) $ 2 $ (1 ) Net income |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 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: For the Year Ended December 31, 2019 2018 2017 (dollars in thousands, except per share data) Earnings per common share - basic: Numerator: Net income $ 25,257 $ 23,881 $ 14,816 Less dividends and undistributed earnings allocated to participating securities (210 ) (239 ) (157 ) Net income applicable to common shareholders $ 25,047 $ 23,642 $ 14,659 Denominator: Weighted average common shares outstanding 4,629 4,062 4,031 Earnings per common share - basic $ 5.41 $ 5.82 $ 3.64 Earnings per common share - diluted: Numerator: Net income $ 25,257 $ 23,881 $ 14,816 Less dividends and undistributed earnings allocated to participating securities (210 ) (239 ) (157 ) Net income applicable to common shareholders $ 25,047 $ 23,642 $ 14,659 Denominator: Weighted average common shares outstanding 4,629 4,062 4,031 Dilutive effect of common stock equivalents 33 37 35 Weighted average diluted common shares outstanding 4,662 4,099 4,066 Earnings per common share - diluted $ 5.37 $ 5.77 $ 3.61 |
Derivative And Hedging Activi_2
Derivative And Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, 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 $ 2,911 $ — Other Liabilities $ — Total derivatives designated as hedging instruments $ 2,911 $ — Derivatives not designated as hedging instruments Loan related derivative contracts Interest rate swaps with customers 241,187 Other Assets $ 12,980 — Other Liabilities $ — Mirror swaps with counterparties — Other Assets — 241,187 Other Liabilities 12,980 Risk participation agreements out to counterparties 19,000 Other Assets 21 — Other Liabilities — Risk participation agreements in with counterparties — Other Assets — 88,489 Other Liabilities 250 Total derivatives not designated as hedging instruments $ 13,001 $ 13,230 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 tables presents the effect of cash flow hedge accounting on AOCI as of the periods presented: 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 2019 2019 (dollars in thousands) (dollars in thousands) Interest rate contracts $ 984 $ 2,120 $ (1,136 ) Interest Income $ (194 ) $ — $ (194 ) Total $ 984 $ 2,120 $ (1,136 ) $ (194 ) $ — $ (194 ) 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 2018 2018 (dollars in thousands) (dollars in thousands) Interest rate contracts $ 1,002 $ — $ 1,002 Interest Income $ (43 ) $ — $ (43 ) Total $ 1,002 $ — $ 1,002 $ (43 ) $ — $ (43 ) |
Summary of Derivative Financial Instruments Income Statement | The following table presents the effect of the Company’s derivative financial instruments on the Income Statement as of the periods presented: Year Ended December 31, 2019 Year Ended December 31, 2018 Interest Income Interest Income (dollars in thousands) (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 $ (194 ) $ (43 ) The effects of fair value and cash flow hedging: Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest rate contracts Amount of gain or (loss) reclassed from AOCI into income $ (194 ) $ (43 ) Amount of gain or (loss) reclassed from AOCI into income - Included Component — — Amount of gain or (loss) reclassed from AOCI into income - Excluded Component $ (194 ) $ (43 ) |
Summary of Derivative Financial Instruments Not Designated as Hedging Instruments | The following table presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Income Statement as of the periods presented: Amount of Gain or (Loss) Recognized in Income on Derivative Year Ended December 31 Year Ended December 31 Year Ended December 31 2019 2018 2017 Location of Gain or (Loss) (dollars in thousands) Other contracts Other income $ 311 $ 276 $ 426 Total $ 311 $ 276 $ 426 |
Schedule of Financial Instruments Eligible for Offset in Consolidated Balance Sheet | The following tables present the information about financial instruments that are eligible for offset in the consolidated balance sheet as December 31, 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 December 31, 2019 (dollars in thousands) Offsetting of Derivative Assets Derivative Assets $ 15,912 $ — $ 15,912 $ 3,128 $ — $ 12,784 Offsetting of Derivative Liabilities Derivative Liabilities $ 13,230 $ — $ 13,230 $ 3,128 $ 9,645 $ 457 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) | 12 Months Ended |
Dec. 31, 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: December 31, 2019 December 31, 2018 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (dollars in thousands) Financial assets Cash and cash equivalents $ 61,335 $ 61,335 $ 18,473 $ 18,473 Securities available for sale 140,330 140,330 168,163 168,163 Securities held to maturity 258,172 264,114 282,869 281,310 Loans, net 2,208,548 2,160,087 1,543,004 1,484,905 Loans held for sale 1,546 2,051 — — FHLB Boston stock 7,854 7,854 6,844 6,844 Accrued interest receivable 7,052 7,052 5,762 5,762 Mortgage servicing rights 1,321 1,526 666 941 Interest rate contracts 2,911 2,911 1,970 1,970 Loan level interest rate swaps 12,980 12,980 5,782 5,782 Risk participation agreements out to counterparties 21 21 28 28 Financial liabilities Deposits 2,358,878 2,358,089 1,811,410 1,809,051 Short-term borrowings 135,691 135,744 90,000 90,000 Long-term borrowings — — 3,409 3,363 Loan level interest rate swaps 12,980 12,980 5,782 5,782 Risk participation agreements in with counterparties 250 250 179 179 |
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 December 31, 2019 Level 1 Level 2 Level 3 Total (dollars in thousands) Measured on a recurring basis Securities available for sale U.S. GSE obligations $ — $ 37,848 $ — $ 37,848 Mortgage-backed securities — 102,482 — 102,482 Corporate debt securities — — — — Other assets Interest rate swaps with customers — 12,980 — 12,980 Risk participation agreements out to counterparties — 21 — 21 Interest rate contracts — 2,911 — 2,911 Other liabilities Mirror swaps with counterparties — 12,980 — 12,980 Risk participation agreements in with counterparties — 250 — 250 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 December 31, 2019, which were measured at fair value on a non-recurring basis: December 31, 2019 Level 1 Level 2 Level 3 Total (dollars in thousands) Items recorded at fair value on a non-recurring basis Assets Collateral dependent impaired loans $ — $ — $ 2,541 $ 2,541 Loans held for sale 1,546 — — 1,546 Other real estate owned — — 163 163 Total $ 1,546 $ — $ 2,704 $ 4,250 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | 2019 Quarters Fourth Third Second First (dollars in thousands, except share data) Interest and Dividend Income $ 26,415 $ 26,336 $ 24,470 $ 19,118 Interest Expense 4,807 5,285 4,694 2,857 Net Interest and Dividend Income 21,608 21,051 19,776 16,261 Provision for (Release of) Loan Losses 331 2,170 596 (93 ) Net Interest and Dividend Income after Provision for Loan Losses 21,277 18,881 19,180 16,354 Noninterest Income 9,933 10,366 8,145 7,957 Noninterest Expense 21,428 18,863 21,513 16,373 Income Before Taxes 9,782 10,384 5,812 7,938 Income Taxes 2,673 2,708 1,540 1,740 Net Income $ 7,109 $ 7,676 $ 4,272 $ 6,198 Share Data: Average Shares Outstanding, Basic 4,939,973 4,815,020 4,682,109 4,072,805 Average Shares Outstanding, Diluted 4,980,439 4,842,965 4,715,724 4,106,658 Basic Earnings Per Share $ 1.43 $ 1.58 $ 0.91 $ 1.51 Diluted Earnings Per Share $ 1.42 $ 1.57 $ 0.90 $ 1.49 2018 Quarters Fourth Third Second First (dollars in thousands, except share data) Interest and Dividend Income $ 18,385 $ 17,602 $ 16,936 $ 16,132 Interest Expense 1,975 1,431 1,082 979 Net Interest and Dividend Income 16,410 16,171 15,854 15,153 Provision for (Release of) Loan Losses 715 457 (79 ) 409 Net Interest and Dividend Income after Provision for Loan Losses 15,695 15,714 15,933 14,744 Noninterest Income 8,038 8,929 7,844 8,178 Noninterest Expense 16,842 15,879 15,765 15,501 Income Before Taxes 6,891 8,764 8,012 7,421 Income Taxes 1,585 2,105 1,901 1,616 Net Income $ 5,306 $ 6,659 $ 6,111 $ 5,805 Share Data: Average Shares Outstanding, Basic 4,065,681 4,064,620 4,059,927 4,053,355 Average Shares Outstanding, Diluted 4,102,546 4,101,378 4,094,489 4,071,975 Basic Earnings Per Share $ 1.29 $ 1.62 $ 1.49 $ 1.42 Diluted Earnings Per Share $ 1.28 $ 1.61 $ 1.48 $ 1.41 |
Condensed Financial Statement_2
Condensed Financial Statements of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheet | Condensed Balance Sheet December 31, 2019 2018 (dollars in thousands) ASSETS Cash and cash equivalents $ 1,680 $ 4,412 Other assets 13 — Investment in subsidiary 284,868 162,614 Total assets $ 286,561 $ 167,026 SHAREHOLDERS’ EQUITY Shareholders’ equity $ 286,561 $ 167,026 Total shareholders’ equity $ 286,561 $ 167,026 |
Condensed Statements of Income | Condensed Statements of Income For the Year Ended December 31, 2019 2018 2017 (dollars in thousands) Income Dividends from subsidiary $ 10,732 $ 8,615 $ 8,052 Total income 10,732 8,615 8,052 Expenses Other expenses 132 116 — Total expenses 132 116 — Income before income taxes and equity in undistributed income of subsidiary 10,600 8,499 8,052 Income tax benefit (36 ) (32 ) — Income of parent company 10,636 8,531 8,052 Equity in undistributed income of subsidiary 14,621 15,350 6,764 Net income $ 25,257 $ 23,881 $ 14,816 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows For the Year Ended December 31, 2019 2018 2017 (dollars in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 25,257 $ 23,881 $ 14,816 Adjustments to reconcile net income to net cash provided by operating activities Change in other assets, net (13 ) — — Undistributed income of subsidiary (14,621 ) (15,350 ) (6,764 ) Net cash provided by operating activities 10,623 8,531 8,052 CASH FLOWS FROM INVESTING ACTIVITIES: Cash paid in business combinations (3,525 ) — — Investment in subsidiary (38,202 ) — — Net cash (used in)/provided by investing activities (41,727 ) — — CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from the issuance of common stock 38,576 761 1,522 Repurchase of common stock (687 ) (574 ) (470 ) Cash dividends paid on common stock (9,517 ) (8,041 ) (7,582 ) Net cash provided by/(used in) financing activities 28,372 (7,854 ) (6,530 ) Net increase (decrease) in cash (2,732 ) 677 1,522 Cash at beginning of year 4,412 3,735 2,213 Cash at end of year $ 1,680 $ 4,412 $ 3,735 |
The Business - Additional Infor
The Business - Additional Information (Details) - Cambridge Bancorp | 12 Months Ended |
Dec. 31, 2019ServiceBankCorporation | |
Description Of Business [Line Items] | |
Number of core services | Service | 4 |
Number of wholly owned investment in corporations | Corporation | 2 |
Massachusetts and New Hampshire | |
Description Of Business [Line Items] | |
Number of private banking office | Bank | 16 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Lessee, operating lease, existence of option to extend | true | |||
Statutory federal tax rate | 21.00% | 21.00% | 35.00% | |
Tax cuts and jobs act of 2017, one-time non-cash write-down of net deferred tax assets | $ 3,900,000 | |||
Defined benefit pension highest consecutive plan period | 5 years | 3 years | ||
Defined benefit pension plan employees final service period | 10 years | |||
Defined contribution plan, employer matching contribution, percent | 10.00% | |||
Compensation cost | $ 0 | |||
Profit Sharing Plan | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Defined contribution plan, maximum employee contribution, percent | 100.00% | |||
Defined contribution plan, employer matching contribution, percent | 4.00% | 3.00% | ||
Defined contribution plan, minimum number of hours of service per year required for eligibility | 1000 hours | |||
Defined contribution plan, minimum service period required for eligibility | 12 months | |||
Normal retirement age of employees | 65 years | |||
Commercial Mortgage | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of loan to value ratio | 75.00% | |||
Minimum | Residential Mortgage and Home Equity Loans | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of loan to value ratio | 80.00% | |||
Maximum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of bank-owned life insurance | 25.00% | |||
Maximum | Profit Sharing Plan | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Defined discretionary contribution plan, employer matching contribution, percent | 4.00% | |||
Maximum | Residential Mortgage and Home Equity Loans | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Percentage of loan to value ratio | 97.00% |
Recently Issued and Adopted A_2
Recently Issued and Adopted Accounting Standards - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Right-of-use asset | $ 33,587 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||
Right-of-use asset | $ 32,900 |
Mergers - Additional Informatio
Mergers - Additional Information (Details) - Optima Bank And Trust Company | Apr. 17, 2019USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
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 | $ 3,500,000 | ||
Total consideration paid | $ 64,300,000 | ||
Merger expenses | $ 3,900,000 | $ 201,000 |
Mergers - Summary of Estimated
Mergers - Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) | Dec. 31, 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 | 30,794,000 | ||
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 |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Cash And Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 61,335,000 | $ 18,473,000 |
Federal Reserve Bank of Boston | ||
Cash And Cash Equivalents [Line Items] | ||
Reserve balance of cash and due from banks | 31,500,000 | 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 | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Amortized Cost | $ 141,109 | $ 172,290 |
Available for sale securities, Gross Unrealized Gains | 231 | 118 |
Available for sale securities, Gross Unrealized Losses | (1,010) | (4,245) |
Available for sale securities, Fair Value | 140,330 | 168,163 |
Held to maturity securities, Amortized Cost | 258,172 | 282,869 |
Held to maturity securities, Gross Unrealized Gains | 6,119 | 1,431 |
Held to maturity securities, Gross Unrealized Losses | (177) | (2,990) |
Held to maturity securities, Fair Value | 264,114 | 281,310 |
Total, Amortized Cost | 399,281 | 455,159 |
Total, Gross Unrealized Gains | 6,350 | 1,549 |
Total, Gross Unrealized Losses | (1,187) | (7,235) |
Total, Fair Value | 404,444 | 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 | 38,000 | 75,004 |
Available for sale securities, Gross Unrealized Losses | (152) | (965) |
Available for sale securities, Fair Value | 37,848 | 74,039 |
Held to maturity securities, Amortized Cost | 5,000 | 32,571 |
Held to maturity securities, Gross Unrealized Losses | (238) | |
Held to maturity securities, Fair Value | 5,000 | 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 | 6,980 | 6,972 |
Held to maturity securities, Gross Unrealized Gains | 116 | |
Held to maturity securities, Gross Unrealized Losses | (107) | |
Held to maturity securities, Fair Value | 7,096 | 6,865 |
Mortgage Backed Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Available for sale securities, Amortized Cost | 103,109 | 92,271 |
Available for sale securities, Gross Unrealized Gains | 231 | 118 |
Available for sale securities, Gross Unrealized Losses | (858) | (3,121) |
Available for sale securities, Fair Value | 102,482 | 89,268 |
Held to maturity securities, Amortized Cost | 161,759 | 168,118 |
Held to maturity securities, Gross Unrealized Gains | 2,751 | 134 |
Held to maturity securities, Gross Unrealized Losses | (111) | (2,290) |
Held to maturity securities, Fair Value | 164,399 | 165,962 |
Municipal Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Held to maturity securities, Amortized Cost | 84,433 | 75,208 |
Held to maturity securities, Gross Unrealized Gains | 3,252 | 1,297 |
Held to maturity securities, Gross Unrealized Losses | (66) | (355) |
Held to maturity securities, Fair Value | $ 87,619 | $ 76,150 |
Investment Securities - Schedul
Investment Securities - Schedule of Amortized Cost and Fair Value of Debt Securities, Aggregated By Earlier of Guaranteed Call Date or Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 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 | $ 5,000 | |
Available for sale securities, Within One Year, Fair Value | 4,997 | |
Available for sale securities, After One, But Within Five Years, Amortized Cost | 20,037 | |
Available for sale securities, After One, But Within Five Years, Fair Value | 19,977 | |
Available for sale securities, After Five, But Within Ten Years, Amortized Cost | 41,393 | |
Available for sale securities, After Five, But Within Ten Years, Fair Value | 40,931 | |
Available for sale securities, After Ten Years, Amortized Cost | 74,679 | |
Available for sale securities, After Ten Years, Fair Value | 74,425 | |
Available for sale securities, Total, Amortized Cost | 141,109 | |
Available for sale securities, Total, Fair Value | 140,330 | |
Held to maturity securities, Within One Year, Amortized Cost | 8,270 | |
Held to maturity securities, Within One Year, Fair Value | 8,291 | |
Held to maturity securities, After One, But Within Five Years, Amortized Cost | 17,588 | |
Held to maturity securities, After One, But Within Five Years, Fair Value | 18,000 | |
Held to maturity securities, After Five, But Within Ten Years, Amortized Cost | 93,289 | |
Held to maturity securities, After Five, But Within Ten Years, Fair Value | 96,640 | |
Held to maturity securities, After Ten Years, Amortized Cost | 139,025 | |
Held to maturity securities, After Ten Years, Fair Value | 141,183 | |
Held to maturity securities, Amortized Cost | 258,172 | $ 282,869 |
Held to maturity securities, Fair Value | 264,114 | 281,310 |
Available for sale securities and Held to maturity securities, Within One Year, Amortized Cost | 13,270 | |
Available for sale securities and Held to maturity securities, Within One Year, Fair Value | 13,288 | |
Available for sale securities and Held to maturity securities, After One, But Within Five Years, Amortized Cost | 37,625 | |
Available for sale securities and Held to maturity securities, After One, But Within Five Years, Fair Value | 37,977 | |
Available for sale securities and Held to maturity securities, After Five, But Within Ten Years, Amortized Cost | 134,682 | |
Available for sale securities and Held to maturity securities, After Five, But Within Ten Years, Fair Value | 137,571 | |
Available for sale securities and Held to maturity securities, After Ten Years, Amortized Cost | 213,704 | |
Available for sale securities and Held to maturity securities, After Ten Years, Fair Value | 215,608 | |
Available for sale securities and Held to maturity securities, Total, Amortized Cost | 399,281 | |
Available for sale securities and Held to maturity securities, Total, Fair Value | 404,444 | |
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 | 5,000 | |
Available for sale securities, Within One Year, Fair Value | 4,997 | |
Available for sale securities, After One, But Within Five Years, Amortized Cost | 20,000 | |
Available for sale securities, After One, But Within Five Years, Fair Value | 19,939 | |
Available for sale securities, After Five, But Within Ten Years, Amortized Cost | 5,000 | |
Available for sale securities, After Five, But Within Ten Years, Fair Value | 4,934 | |
Available for sale securities, After Ten Years, Amortized Cost | 8,000 | |
Available for sale securities, After Ten Years, Fair Value | 7,978 | |
Available for sale securities, Total, Amortized Cost | 38,000 | |
Available for sale securities, Total, Fair Value | 37,848 | |
Held to maturity securities, Within One Year, Amortized Cost | 5,000 | |
Held to maturity securities, Within One Year, Fair Value | 5,000 | |
Held to maturity securities, Amortized Cost | 5,000 | |
Held to maturity securities, Fair Value | 5,000 | |
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 | 37 | |
Available for sale securities, After One, But Within Five Years, Fair Value | 38 | |
Available for sale securities, After Five, But Within Ten Years, Amortized Cost | 36,393 | |
Available for sale securities, After Five, But Within Ten Years, Fair Value | 35,997 | |
Available for sale securities, After Ten Years, Amortized Cost | 66,679 | |
Available for sale securities, After Ten Years, Fair Value | 66,447 | |
Available for sale securities, Total, Amortized Cost | 103,109 | |
Available for sale securities, Total, Fair Value | 102,482 | |
Held to maturity securities, After One, But Within Five Years, Amortized Cost | 2 | |
Held to maturity securities, After One, But Within Five Years, Fair Value | 2 | |
Held to maturity securities, After Five, But Within Ten Years, Amortized Cost | 48,088 | |
Held to maturity securities, After Five, But Within Ten Years, Fair Value | 49,117 | |
Held to maturity securities, After Ten Years, Amortized Cost | 113,669 | |
Held to maturity securities, After Ten Years, Fair Value | 115,280 | |
Held to maturity securities, Amortized Cost | 161,759 | |
Held to maturity securities, Fair Value | 164,399 | |
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 | 6,980 | |
Held to maturity securities, After One, But Within Five Years, Fair Value | 7,096 | |
Held to maturity securities, Amortized Cost | 6,980 | |
Held to maturity securities, Fair Value | 7,096 | |
Municipal Securities | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Held to maturity securities, Within One Year, Amortized Cost | 3,270 | |
Held to maturity securities, Within One Year, Fair Value | 3,291 | |
Held to maturity securities, After One, But Within Five Years, Amortized Cost | 10,606 | |
Held to maturity securities, After One, But Within Five Years, Fair Value | 10,902 | |
Held to maturity securities, After Five, But Within Ten Years, Amortized Cost | 45,201 | |
Held to maturity securities, After Five, But Within Ten Years, Fair Value | 47,523 | |
Held to maturity securities, After Ten Years, Amortized Cost | 25,356 | |
Held to maturity securities, After Ten Years, Fair Value | 25,903 | |
Held to maturity securities, Amortized Cost | 84,433 | 75,208 |
Held to maturity securities, Fair Value | $ 87,619 | $ 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 | Dec. 31, 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 | $ 46,293 | $ 902 |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses, Less than 12 months | (353) | (98) |
Temporarily Impaired Securities, Available for sale securities, Fair Value, 12 months or longer | 75,702 | 164,808 |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses, 12 months or longer | (657) | (4,147) |
Temporarily Impaired Securities, Available for sale securities, Fair Value | 121,995 | 165,710 |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses | (1,010) | (4,245) |
Temporarily Impaired Securities, Held to maturity securities, Fair Value, Less than 12 months | 19,772 | 51,063 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses, Less than 12 months | (93) | (410) |
Temporarily Impaired Securities, Held to maturity securities, Fair Value, 12 months or longer | 17,928 | 128,876 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses, 12 months or longer | (84) | (2,580) |
Temporarily Impaired Securities, Held to maturity securities, Fair Value | 37,700 | 179,939 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses | (177) | (2,990) |
Temporarily Impaired Securities, Fair Value, Less than 12 months | 66,065 | 51,965 |
Temporarily Impaired Securities, Unrealized Losses, Less than 12 months | (446) | (508) |
Temporarily Impaired Securities, Fair Value, 12 months or longer | 93,630 | 293,684 |
Temporarily Impaired Securities, Unrealized Losses, 12 months or longer | (741) | (6,727) |
Temporarily Impaired Securities, Fair Value | 159,695 | 345,649 |
Temporarily Impaired Securities, Unrealized Losses | (1,187) | (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, Less than 12 months | 12,912 | |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses, Less than 12 months | (88) | |
Temporarily Impaired Securities, Available for sale securities, Fair Value, 12 months or longer | 24,936 | 74,039 |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses, 12 months or longer | (64) | (965) |
Temporarily Impaired Securities, Available for sale securities, Fair Value | 37,848 | 74,039 |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses | (152) | (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 | 5,000 | 27,338 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses, 12 months or longer | (233) | |
Temporarily Impaired Securities, Held to maturity securities, Fair Value | 5,000 | 32,333 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses | (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 | 33,381 | |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses, Less than 12 months | (265) | |
Temporarily Impaired Securities, Available for sale securities, Fair Value, 12 months or longer | 50,766 | 86,815 |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses, 12 months or longer | (593) | (3,121) |
Temporarily Impaired Securities, Available for sale securities, Fair Value | 84,147 | 86,815 |
Temporarily Impaired Securities, Available for sale securities, Unrealized Losses | (858) | (3,121) |
Temporarily Impaired Securities, Held to maturity securities, Fair Value, Less than 12 months | 14,838 | 30,719 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses, Less than 12 months | (27) | (216) |
Temporarily Impaired Securities, Held to maturity securities, Fair Value, 12 months or longer | 12,928 | 93,225 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses, 12 months or longer | (84) | (2,074) |
Temporarily Impaired Securities, Held to maturity securities, Fair Value | 27,766 | 123,944 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses | (111) | (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 | 4,934 | 8,484 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses, Less than 12 months | (66) | (82) |
Temporarily Impaired Securities, Held to maturity securities, Fair Value, 12 months or longer | 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 | 4,934 | 16,797 |
Temporarily Impaired Securities, Held to maturity securities, Unrealized Losses | $ (66) | $ (355) |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | Dec. 31, 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 | 0.74% | 2.05% |
Maximum | ||
Schedule of Available for Sale Securities and Held to Maturity Securities [Line Items] | ||
Percentage of unrealized loss on amortized cost | 3.15% | 9.79% |
Unrealized loss of amortized cost basis | $ 63,000 | $ 98,000 |
Unrealized dollar loss of amortized cost basis | $ 96,000 | $ 189,000 |
Percentage of unrealized dollar loss on amortized cost | 1.93% | 5.34% |
Investment Securities - Summa_2
Investment Securities - Summary of Gains (Losses) from Sale of Investment Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |||
Amortized cost of securities sold | $ 26,631 | $ 700 | $ 77,372 |
Gain/(loss) realized on securities sold | (79) | 2 | (3) |
Net proceeds from securities sold | $ 26,552 | $ 702 | $ 77,369 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Loans Outstanding by Category (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loans And Leases Receivable Disclosure [Line Items] | ||
Total loans | $ 2,226,728 | $ 1,559,772 |
Residential Mortgage | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Deferred costs (fees) net of unearned fees | 2,176 | 1,408 |
Total loans | 917,566 | 604,331 |
Residential Mortgage | Construction | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 17,374 | |
Residential Mortgage | Mortgages - Fixed Rate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 430,877 | 293,267 |
Residential Mortgage | Mortgages - Adjustable Rate | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 467,139 | 309,656 |
Commercial Mortgage | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Deferred costs (fees) net of unearned fees | 144 | 82 |
Total loans | 1,060,574 | 757,957 |
Commercial Mortgage | Construction | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 76,288 | 44,146 |
Commercial Mortgage | Mortgages - Nonowner Occupied | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 870,047 | 654,394 |
Commercial Mortgage | Mortgages - Owner Occupied | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 114,095 | 59,335 |
Home Equity | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Deferred costs (fees) net of unearned fees | 240 | 250 |
Total loans | 80,675 | 69,336 |
Home Equity | Home Equity - Lines of Credit | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 73,880 | 63,421 |
Home Equity | Home Equity - Term Loans | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 6,555 | 5,665 |
Commercial & Industrial | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 133,337 | 93,728 |
Deferred costs (fees) net of unearned fees | (101) | (16) |
Total loans | 133,236 | 93,712 |
Consumer | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Deferred costs (fees) net of unearned fees | 25 | 13 |
Total loans | 34,677 | 34,436 |
Consumer | Secured | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | 33,453 | 33,252 |
Consumer | Unsecured | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Loans outstanding by category gross | $ 1,199 | $ 1,171 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan | |
Financing Receivable Modifications [Line Items] | ||
Loans outstanding to directors and officers | $ 3,000 | $ 488,000 |
Loans to directors and officers, additions | 85,000 | 139,000 |
Loans to directors and officers, repayments | 570,000 | 167,000 |
Commitments to lend additional funds to borrowers whose loans were on non-accrual status | $ 0 | $ 0 |
Number of loans modified during the period | Loan | 1 | |
Number of loans determined to be troubled debt restructurings | Loan | 3 | 3 |
Troubled debt restructuring carrying value | $ 227,000 | $ 117,000 |
Number of TDRs defaulted during the period | Loan | 0 | 0 |
Allowance for loan losses includes specific reserve for troubled deb restructurings | $ 87,000,000 | |
Specific reserve for troubled debt restructurings | $ 0 | |
Other real estate owned | 163,000 | |
Loans secured by one- to-four family residential properties in process of foreclosure | 344,000 | $ 351,000 |
Troubled Debt Restructurings | ||
Financing Receivable Modifications [Line Items] | ||
Troubled debt restructuring carrying value | $ 128,000 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Non-performing Loans Disaggregated by Loan Category (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Troubled debt restructurings | $ 227,000 | $ 117,000 |
Non-Performing Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | 4,160,000 | 525,000 |
Loans past due >90 days, but still accruing | 1,264,000 | |
Troubled debt restructurings | 227,000 | 117,000 |
Total | 5,651,000 | 642,000 |
Non-Performing Loans | Residential Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | 1,298,000 | 512,000 |
Loans past due >90 days, but still accruing | 527,000 | |
Troubled debt restructurings | 99,000 | 111,000 |
Total | 1,924,000 | 623,000 |
Non-Performing Loans | Commercial Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | 2,800,000 | |
Loans past due >90 days, but still accruing | 486,000 | |
Total | 3,286,000 | |
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 | 50,000 | |
Loans past due >90 days, but still accruing | 251,000 | |
Troubled debt restructurings | 128,000 | 6,000 |
Total | $ 429,000 | $ 6,000 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Loans Receivable Disaggregated by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | $ 2,226,728 | $ 1,559,772 |
Residential Mortgage | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 917,566 | 604,331 |
Residential Mortgage | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 915,642 | 603,708 |
Residential Mortgage | Non-Performing Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 1,924 | 623 |
Home Equity | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 80,675 | 69,336 |
Home Equity | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 80,663 | 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 | 34,677 | 34,436 |
Consumer | Performing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 34,677 | 34,436 |
Commercial Mortgage | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 1,060,574 | 757,957 |
Commercial Mortgage | 1-6 (Pass) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 1,050,037 | 753,338 |
Commercial Mortgage | 7 (Special Mention) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 7,360 | 4,619 |
Commercial Mortgage | 8 (Substandard) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 3,177 | |
Commercial & Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 133,236 | 93,712 |
Commercial & Industrial | 1-6 (Pass) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 123,900 | 85,821 |
Commercial & Industrial | 7 (Special Mention) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | 4,289 | 4,186 |
Commercial & Industrial | 8 (Substandard) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans receivable | $ 5,047 | $ 3,705 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Schedule of Loans Receivable Disaggregated by Past Due Status (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | $ 15,645 | $ 1,614 |
Current Loans | 2,211,083 | 1,558,158 |
Total loans | 2,226,728 | 1,559,772 |
30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 9,854 | 1,142 |
60-89 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 1,332 | 121 |
90 Days or Greater | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 4,459 | 351 |
Residential Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 10,846 | 1,506 |
Current Loans | 906,720 | 602,825 |
Total loans | 917,566 | 604,331 |
Residential Mortgage | 30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 8,710 | 1,034 |
Residential Mortgage | 60-89 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 1,089 | 121 |
Residential Mortgage | 90 Days or Greater | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 1,047 | 351 |
Commercial Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 3,972 | |
Current Loans | 1,056,602 | 757,957 |
Total loans | 1,060,574 | 757,957 |
Commercial Mortgage | 30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 811 | |
Commercial Mortgage | 90 Days or Greater | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 3,161 | |
Commercial & Industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 749 | |
Current Loans | 132,487 | 93,712 |
Total loans | 133,236 | 93,712 |
Commercial & Industrial | 30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 272 | |
Commercial & Industrial | 60-89 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 226 | |
Commercial & Industrial | 90 Days or Greater | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 251 | |
Consumer loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 9 | 108 |
Current Loans | 34,668 | 34,328 |
Total loans | 34,677 | 34,436 |
Consumer loans | 30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 4 | 108 |
Consumer loans | 60-89 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 5 | |
Home Equity | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 69 | |
Current Loans | 80,606 | 69,336 |
Total loans | 80,675 | $ 69,336 |
Home Equity | 30-59 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | 57 | |
Home Equity | 60-89 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Total Past Due | $ 12 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Information Pertaining to Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
With no required reserve recorded, Carrying Value | $ 4,019 | $ 740 | $ 1,232 |
With no required reserve recorded, Average Carrying Value | 2,172 | 768 | 1,282 |
With no required reserve recorded, Unpaid Principal Balance | 5,449 | 927 | 1,475 |
With no required reserve recorded, Interest Income Recognized | 41 | 6 | 5 |
With required reserve recorded, Carrying Value | 128 | 64 | |
With required reserve recorded, Average Carrying Value | 59 | 66 | |
With required reserve recorded, Unpaid Principal Balance | 167 | 64 | |
With required reserve recorded, Related Allowance | 87 | 93 | |
With required reserve recorded, Interest Income Recognized | 1 | ||
Carrying Value | 4,147 | 740 | 1,296 |
Average Carrying Value | 2,231 | 768 | 1,348 |
Unpaid Principal Balance | 5,616 | 927 | 1,539 |
Interest Income Recognized | 41 | 6 | 6 |
Commercial and Industrial | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
With no required reserve recorded, Carrying Value | 6 | 29 | |
With no required reserve recorded, Average Carrying Value | 17 | 36 | |
With no required reserve recorded, Unpaid Principal Balance | 6 | 29 | |
With no required reserve recorded, Interest Income Recognized | 1 | 2 | |
With required reserve recorded, Carrying Value | 128 | ||
With required reserve recorded, Average Carrying Value | 59 | ||
With required reserve recorded, Unpaid Principal Balance | 167 | ||
With required reserve recorded, Related Allowance | 87 | ||
Carrying Value | 128 | 6 | 29 |
Average Carrying Value | 59 | 17 | 36 |
Unpaid Principal Balance | 167 | 6 | 29 |
Interest Income Recognized | 1 | 2 | |
Commercial Mortgage | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
With no required reserve recorded, Carrying Value | 3,161 | 213 | |
With no required reserve recorded, Average Carrying Value | 1,385 | 224 | |
With no required reserve recorded, Unpaid Principal Balance | 4,376 | 227 | |
With no required reserve recorded, Interest Income Recognized | 35 | 3 | |
Carrying Value | 3,161 | 213 | |
Average Carrying Value | 1,385 | 224 | |
Unpaid Principal Balance | 4,376 | 227 | |
Interest Income Recognized | 35 | 3 | |
Residential Mortgage | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
With no required reserve recorded, Carrying Value | 765 | 634 | 904 |
With no required reserve recorded, Average Carrying Value | 691 | 647 | 931 |
With no required reserve recorded, Unpaid Principal Balance | 940 | 786 | 1,103 |
With no required reserve recorded, Interest Income Recognized | 5 | 4 | |
With required reserve recorded, Carrying Value | 64 | ||
With required reserve recorded, Average Carrying Value | 66 | ||
With required reserve recorded, Unpaid Principal Balance | 64 | ||
With required reserve recorded, Related Allowance | 93 | ||
With required reserve recorded, Interest Income Recognized | 1 | ||
Carrying Value | 765 | 634 | 968 |
Average Carrying Value | 691 | 647 | 997 |
Unpaid Principal Balance | 940 | 786 | 1,167 |
Interest Income Recognized | 5 | 4 | 1 |
Home Equity | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
With no required reserve recorded, Carrying Value | 93 | 100 | 86 |
With no required reserve recorded, Average Carrying Value | 96 | 104 | 91 |
With no required reserve recorded, Unpaid Principal Balance | 133 | 135 | 116 |
With no required reserve recorded, Interest Income Recognized | 1 | 1 | |
Carrying Value | 93 | 100 | 86 |
Average Carrying Value | 96 | 104 | 91 |
Unpaid Principal Balance | 133 | 135 | $ 116 |
Interest Income Recognized | $ 1 | $ 1 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Summary of Changes in Allowance for Loan Losses Disaggregated by Loan Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for loan losses, Beginning balance | $ 16,768 | $ 15,320 | $ 15,261 |
Charge-offs | (1,656) | (109) | (323) |
Recoveries | 64 | 55 | 20 |
Provision for (Release of) | 3,004 | 1,502 | 362 |
Allowance for loan losses, Ending balance | 18,180 | 16,768 | 15,320 |
Residential Mortgage | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for loan losses, Beginning balance | 4,946 | 5,047 | 4,898 |
Provision for (Release of) | 195 | (101) | 149 |
Allowance for loan losses, Ending balance | 5,141 | 4,946 | 5,047 |
Commercial Mortgage | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for loan losses, Beginning balance | 9,626 | 8,289 | 8,451 |
Charge-offs | (1,270) | ||
Provision for (Release of) | 2,549 | 1,337 | (162) |
Allowance for loan losses, Ending balance | 10,905 | 9,626 | 8,289 |
Home Equity | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for loan losses, Beginning balance | 517 | 630 | 651 |
Provision for (Release of) | (56) | (113) | (21) |
Allowance for loan losses, Ending balance | 461 | 517 | 630 |
Commercial & Industrial | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for loan losses, Beginning balance | 1,415 | 946 | 807 |
Charge-offs | (338) | (73) | (284) |
Recoveries | 53 | 48 | 13 |
Provision for (Release of) | 258 | 494 | 410 |
Allowance for loan losses, Ending balance | 1,388 | 1,415 | 946 |
Consumer | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for loan losses, Beginning balance | 264 | 315 | 264 |
Charge-offs | (48) | (36) | (39) |
Recoveries | 11 | 7 | 7 |
Provision for (Release of) | (29) | (22) | 83 |
Allowance for loan losses, Ending balance | 198 | 264 | 315 |
Impaired | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for loan losses, Beginning balance | 93 | 190 | |
Provision for (Release of) | 87 | $ (93) | (97) |
Allowance for loan losses, Ending balance | $ 87 | $ 93 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Summary of Allowance for Loan Losses and Related Loans Receivable Disaggregated by Impairment Method (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Individually evaluated for impairment | $ 87 | |
Collectively evaluated for impairment | 18,093 | $ 16,768 |
Total loans | 18,180 | 16,768 |
Individually evaluated for impairment | 4,145 | 740 |
Collectively evaluated for impairment | 2,222,583 | 1,559,032 |
Total loans | 2,226,728 | 1,559,772 |
Residential Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Collectively evaluated for impairment | 5,141 | 4,946 |
Total loans | 5,141 | 4,946 |
Individually evaluated for impairment | 764 | 647 |
Collectively evaluated for impairment | 916,802 | 603,684 |
Total loans | 917,566 | 604,331 |
Commercial Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Collectively evaluated for impairment | 10,905 | 9,626 |
Total loans | 10,905 | 9,626 |
Individually evaluated for impairment | 3,161 | |
Collectively evaluated for impairment | 1,057,413 | 757,957 |
Total loans | 1,060,574 | 757,957 |
Home Equity | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Collectively evaluated for impairment | 461 | 517 |
Total loans | 461 | 517 |
Individually evaluated for impairment | 92 | 88 |
Collectively evaluated for impairment | 80,583 | 69,248 |
Total loans | 80,675 | 69,336 |
Commercial & Industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Individually evaluated for impairment | 87 | |
Collectively evaluated for impairment | 1,388 | 1,415 |
Total loans | 1,475 | 1,415 |
Individually evaluated for impairment | 128 | 5 |
Collectively evaluated for impairment | 133,108 | 93,707 |
Total loans | 133,236 | 93,712 |
Consumer | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Collectively evaluated for impairment | 198 | 264 |
Total loans | 198 | 264 |
Collectively evaluated for impairment | 34,677 | 34,436 |
Total loans | $ 34,677 | $ 34,436 |
Federal Home Loan Bank of Bos_2
Federal Home Loan Bank of Boston Stock - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank Stock [Line Items] | ||
Federal Home Loan Bank of Boston Stock, at cost | $ 7,854,000 | $ 6,844,000 |
Federal Home Loan Bank of Boston | ||
Federal Home Loan Bank Stock [Line Items] | ||
Federal Home Loan Bank of Boston Stock, at cost | 7,900,000 | 6,800,000 |
Impairment on investment of federal home loan bank stock | $ 0 | $ 0 |
Banking Premises and Equipmen_2
Banking Premises and Equipment - Summary of Cost and Accumulated Depreciation and Amortization of Property, Leasehold Improvements and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Line Items] | ||
Banking premises and equipment, Subtotal | $ 33,169 | $ 24,988 |
Accumulated depreciation and amortization | (18,413) | (16,410) |
Total | 14,756 | 8,578 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Banking premises and equipment, Subtotal | 1,116 | 1,116 |
Building and leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Banking premises and equipment, Subtotal | $ 17,817 | 12,175 |
Building and leasehold improvements | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Building and leasehold improvements | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Estimated Useful Lives | 30 years | |
Equipment, including vaults | ||
Property Plant And Equipment [Line Items] | ||
Banking premises and equipment, Subtotal | $ 13,686 | 11,613 |
Equipment, including vaults | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Equipment, including vaults | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Estimated Useful Lives | 20 years | |
Work in process | ||
Property Plant And Equipment [Line Items] | ||
Banking premises and equipment, Subtotal | $ 550 | $ 84 |
Banking Premises and Equipmen_3
Banking Premises and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 2 | $ 1.9 | $ 1.9 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 17, 2019 | |
Finite Lived Intangible Assets [Line Items] | ||||
Carrying value of goodwill | $ 31,206,000 | $ 412,000 | ||
Impairment of goodwill recognized | 0 | $ 0 | ||
Carrying value of intangible asset | $ 3,338,000 | |||
Mortgage Servicing Rights | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Weighted average amortization period | 5 years 2 months 12 days | 7 years 6 months | ||
Amount of mortgage loans sold and servicing rights retained | $ 82,900,000 | $ 1,600,000 | $ 11,900,000 | |
Net gains recognized in gain on loans held for sale | 685,000 | 36,000 | $ 182,000 | |
Fair value of mortgage servicing rights portfolio | 1,500,000 | $ 1,000,000 | ||
Optima Bank And Trust Company | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Carrying value of goodwill | $ 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 | 270,000,000 | |||
Carrying value of intangible asset | $ 3,300,000 | |||
Weighted average amortization period | 9 years |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Beginning Balance, Mortgage servicing rights | $ 666 | $ 823 | $ 842 |
Mortgage servicing rights acquired as a result of the merger, Mortgage servicing rights | 334 | ||
Mortgage servicing rights capitalized, Mortgage servicing rights | 618 | 20 | 132 |
Amortization charged against servicing income, Mortgage servicing rights | (271) | (147) | (151) |
Change in impairment reserve, Mortgage servicing rights | (30) | ||
Ending Balance, Mortgage servicing rights | 1,347 | 666 | 823 |
Beginning Balance, Valuation allowance | (30) | (30) | |
Change in impairment reserve, Valuation allowance | (26) | 30 | |
Ending Balance, Valudation allowance | (26) | (30) | |
Beginning Balance, Total | 666 | 793 | 812 |
Mortgage servicing rights acquired as a result of the merger, Total | 334 | ||
Mortgage servicing rights capitalized, Total | 618 | 20 | 132 |
Amortization charged against servicing income, Total | (271) | (147) | (151) |
Change in impairment reserve, Total | (26) | ||
Ending Balance, Total | $ 1,321 | $ 666 | $ 793 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Aggregate Estimated Future Amortization Expense (Details) - Mortgage Servicing Rights $ in Thousands | Dec. 31, 2019USD ($) |
Future Amortization Expense | |
2020 | $ 202 |
2021 | 166 |
2022 | 135 |
2023 | 110 |
2024 | 89 |
Thereafter | 619 |
Total | $ 1,321 |
Deposits - Summary of Deposits
Deposits - Summary of Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Demand deposits (non-interest bearing) | $ 630,593 | $ 494,492 |
Interest bearing checking | 450,098 | 431,702 |
Money market | 181,406 | 135,585 |
Savings | 914,499 | 628,212 |
Retail certificates of deposit under $100,000 | 56,602 | 36,223 |
Retail certificates of deposit $100,000 or greater | 118,596 | 57,692 |
Wholesale certificates of deposit | 7,084 | 27,504 |
Total deposits | $ 2,358,878 | $ 1,811,410 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Less than 3 months remaining | $ 52,883 | $ 24,219 |
3 to 5 months remaining | 47,701 | 17,486 |
6 to 11 months remaining | 38,981 | 37,987 |
12 to 23 months remaining | 31,501 | 28,529 |
24 to 47 months remaining | 9,448 | 9,652 |
48 months or more remaining | 1,768 | 3,546 |
Total certificates of deposit | $ 182,282 | $ 121,419 |
Deposits - Additional Informati
Deposits - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deposits [Abstract] | |||
Interest expense on retail certificates of deposit $100,000 or greater | $ 2,100,000 | $ 467,000 | $ 446,000 |
Certificates of deposit, at or above FDIC insurance limit of 250,000 | 60,800,000 | 31,800,000 | |
Deposit accounts of directors, executive officers and their respective affiliates | $ 7,200,000 | $ 6,800,000 |
Borrowings - Schedule of Inform
Borrowings - Schedule of Information Relating to Short-term Borrowings (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Advances From Federal Home Loan Banks [Abstract] | ||
Ending balance | $ 135,691,000 | $ 90,000,000 |
Average daily balance | 84,414,000 | 15,183,000 |
Highest month-end balance | $ 135,691,000 | $ 90,000,000 |
Weighted average interest rate | 2.31% | 2.47% |
Borrowings - Schedule of Info_2
Borrowings - Schedule of Information Relating to Long-term Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Banks [Abstract] | ||
FHLB of Boston long-term advances due amortizing, amount | $ 3,409 | |
FHLB of Boston long-term advances due amortizing, interest rate | 0.00% | 1.94% |
Borrowings - Schedule of Info_3
Borrowings - Schedule of Information Relating to Long-term Borrowings (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Federal Home Loan Banks [Abstract] | |
FHLB of long-term advances due date | Sep. 1, 2020 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Percentage of market value, secured blanket lien on qualified collateral | 95.00% | |
Percentage of carrying value, secured blanket lien on qualified collateral | 75.00% | |
Unused borrowing capacity based upon collateral pledged | $ 345.5 | |
Commercial Real Estate And Commercial And Industrial Loans | Line of Credit | ||
Debt Instrument [Line Items] | ||
Collateral pledged amount | 316.4 | $ 291.7 |
FRB Boston | Commercial Real Estate And Commercial And Industrial Loans | ||
Debt Instrument [Line Items] | ||
Line of credit unused borrowing capacity | $ 134.9 | $ 167.5 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||
Tax cuts and jobs act of 2017, one-time non-cash write-down of net deferred tax assets | $ 3,900,000 | ||
Federal tax rate | 21.00% | 21.00% | 35.00% |
Tax rate deferred tax assets were measured | 27.86% | 28.11% | |
Deferred tax assets, valuation allowance | $ 0 | $ 0 | |
Unrecognized tax benefits | 0 | 0 | |
Tax benefit resulting from share based compensation | 733,000 | 729,000 | $ 427,000 |
Accounting Standards Update 2016-09 | |||
Income Taxes [Line Items] | |||
Tax benefit resulting from share based compensation | $ 199,000 | $ 225,000 | $ 221,000 |
Federal Income Tax | Earliest Tax Year | |||
Income Taxes [Line Items] | |||
Income tax returns year open and subject to examination | 2016 | ||
State Income Tax | Earliest Tax Year | |||
Income Taxes [Line Items] | |||
Income tax returns year open and subject to examination | 2016 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current | |||||||||||
Federal | $ 5,954 | $ 5,524 | $ 8,446 | ||||||||
State | 2,597 | 2,404 | 2,225 | ||||||||
Total current expense | 8,551 | 7,928 | 10,671 | ||||||||
Deferred | |||||||||||
Federal | (63) | (490) | 2,948 | ||||||||
State | 173 | (231) | (261) | ||||||||
Total deferred | 110 | (721) | 2,687 | ||||||||
Total income tax expense | $ 2,673 | $ 2,708 | $ 1,540 | $ 1,740 | $ 1,585 | $ 2,105 | $ 1,901 | $ 1,616 | $ 8,661 | $ 7,207 | $ 13,358 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Total Income Tax Provision, Calculated at Statutory Federal Income Tax Rates, to Income Tax Expense in Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Provision at statutory rates | $ 7,123 | $ 6,528 | $ 9,861 | ||||||||
Increase/(decrease) resulting from: | |||||||||||
State tax, net of federal tax benefit | 2,188 | 1,717 | 1,277 | ||||||||
Tax-exempt income | (599) | (580) | (1,079) | ||||||||
ESOP dividends | (124) | (127) | (216) | ||||||||
Bank owned life insurance | (129) | (140) | (205) | ||||||||
Benefit from stock compensation | (150) | (168) | (190) | ||||||||
Non-deductible Acquisition Costs | 236 | ||||||||||
Impact of Tax Cuts and Jobs Act | 3,870 | ||||||||||
Other | 116 | (23) | 40 | ||||||||
Total income tax expense | $ 2,673 | $ 2,708 | $ 1,540 | $ 1,740 | $ 1,585 | $ 2,105 | $ 1,901 | $ 1,616 | $ 8,661 | $ 7,207 | $ 13,358 |
Provision at statutory rates, Rate | 21.00% | 21.00% | 35.00% | ||||||||
Increase/(decrease) resulting from: (Rate) | |||||||||||
State tax, net of federal tax benefit, Rate | 6.45% | 5.52% | 4.53% | ||||||||
Tax-exempt income, Rate | (1.77%) | (1.87%) | (3.83%) | ||||||||
ESOP dividends, Rate | (0.37%) | (0.41%) | (0.77%) | ||||||||
Bank owned life insurance, Rate | (0.38%) | (0.45%) | (0.73%) | ||||||||
Benefit from stock compensation, Rate | (0.44%) | (0.54%) | (0.67%) | ||||||||
Non-deductible Acquisition Costs, Rate | 0.70% | ||||||||||
Impact of Tax Cuts and Jobs Act, Rate | 13.74% | ||||||||||
Other, Rate | 0.34% | (0.07%) | 0.15% | ||||||||
Total income tax expense, Rate | 25.53% | 23.18% | 47.42% |
Income Taxes - Summary of Net D
Income Taxes - Summary of Net Deferred Tax Asset (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Gross deferred tax assets | ||
Allowance for loan losses | $ 5,029 | $ 4,715 |
Accrued retirement benefits | 1,592 | 2,082 |
Unrealized losses on AFS securities | 171 | 957 |
Incentive compensation | 1,248 | 1,189 |
Equity based compensation | 1,034 | 849 |
Lease Liability | 9,765 | 333 |
ESOP dividends | 165 | 169 |
Loss carryforwards as a result of the Optima merger | 877 | |
Intangibles (merger related) | 472 | |
Other | 252 | 155 |
Total gross deferred tax assets | 20,605 | 10,449 |
Gross deferred tax liabilities | ||
Deferred loan origination costs | (911) | (459) |
Depreciation of premises and equipment | (1,021) | (678) |
Right of Use Asset | (9,356) | |
Mortgage servicing rights | (368) | (187) |
Goodwill | (113) | (114) |
Derivative transactions | (607) | (294) |
Total gross deferred tax liabilities | (12,376) | (1,732) |
Net deferred tax asset | $ 8,229 | $ 8,717 |
Pension and Retirement Plans -
Pension and Retirement Plans - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit pension highest consecutive plan period | 5 years | 3 years | ||
Defined contribution plan, employer matching contribution, percent | 10.00% | |||
Transfers between fair value levels | $ 0 | $ 0 | ||
Minimum | Domestic Large Cap Equities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation percentages | 30.00% | |||
Minimum | Domestic Small/Mid Cap Equities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation percentages | 5.00% | |||
Minimum | International Equities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation percentages | 0.00% | |||
Minimum | Cash and Fixed Income | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation percentages | 20.00% | |||
Maximum | Domestic Large Cap Equities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation percentages | 60.00% | |||
Maximum | Domestic Small/Mid Cap Equities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation percentages | 20.00% | |||
Maximum | International Equities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation percentages | 20.00% | |||
Maximum | Cash and Fixed Income | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Target asset allocation percentages | 50.00% | |||
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, description | The Company has a noncontributory, defined benefit pension plan (“Pension Plan”) covering substantially all employees hired before May 2, 2011. Employees in positions requiring at least 1,000 hours of service per year were eligible to participate upon the attainment of age 21 and the completion of 12 months of service. Benefits are based primarily on years of service and the employee’s average monthly pay during the five highest consecutive plan years of the employee’s final ten years. On October 23, 2017, the Company announced its decision to freeze the accrual of benefits within the Pension Plan, effective December 31, 2017. The Company also provides supplemental retirement benefits to certain current and former executive officers of the Company under the terms of Supplemental Executive Retirement Agreements (“Supplemental Retirement Plan”). | |||
Minimum number of hours of service per year required for eligibility | 1000 hours | |||
Employee eligibility age under the plan | 21 years | |||
Minimum number of years of service required for eligibility | 12 months | |||
Long-term rate of return on asset assumption | 6.50% | 6.50% | ||
Contributions to pension plan | $ 0 | |||
Supplemental Retirement Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit pension highest consecutive plan period | 3 years | |||
Defined contribution plan, employer matching contribution, percent | 10.00% | |||
Contributions to pension plan | 610,000 | $ 538,000 | ||
Postretirement Medical Coverage | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employee eligibility age under the plan | 65 years | |||
Contributions to pension plan | $ 35,000 | $ 33,000 | ||
Profit Sharing Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, maximum employee contribution, percent | 100.00% | |||
Defined contribution plan, employer matching contribution, percent | 4.00% | 3.00% | ||
Defined contribution plan, minimum number of hours of service per year required for eligibility | 1000 hours | |||
Defined contribution plan, minimum service period required for eligibility | 12 months | |||
Profit Sharing Plan | 401(k) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, maximum employee contribution, percent | 100.00% | |||
Profit Sharing Plan | Discretionary Contribution | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, minimum number of hours of service per year required for eligibility | 1000 hours | |||
Defined contribution plan, minimum service period required for eligibility | 12 months | |||
Normal retirement age of employees | 65 years | |||
Profit Sharing Plan | Minimum | 401(k) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, employer matching contribution, percent | 3.00% | |||
Profit Sharing Plan | Maximum | 401(k) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, employer matching contribution, percent | 4.00% | |||
Employee Stock Ownership Plan (ESOP) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, minimum number of hours of service per year required for eligibility | 1000 hours | |||
Defined contribution plan, minimum service period required for eligibility | 12 months | |||
Employee Stock Ownership Plan (ESOP) | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employee eligibility age under the plan | 21 years | |||
Profit Sharing and ESOP Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contribution expense related to plans | $ 2,800,000 | $ 2,600,000 | $ 1.5 | |
'Defined Contribution SERP Plan (“DC SERP”) | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, employer matching contribution, percent | 10.00% | |||
Contribution expense related to plans | $ 167,000 | $ 209,000 | $ 126,000 |
Pension and Retirement Plans _2
Pension and Retirement Plans - Schedule of Projected Benefit Obligations and Funded Status (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plan | ||
Change in projected benefit obligation | ||
Obligation at beginning of year | $ 40,522,000 | $ 43,943,000 |
Interest cost | 1,680,000 | 1,557,000 |
Actuarial loss/(gain) | 4,670,000 | (3,659,000) |
Benefits paid | (1,471,000) | (1,319,000) |
Obligation at end of year | 45,401,000 | 40,522,000 |
Change in plan assets | ||
Fair value at beginning of year | 42,648,000 | 45,247,000 |
Actual return on plan assets | 8,954,000 | (1,280,000) |
Employer contribution | 0 | |
Benefits paid | (1,471,000) | (1,319,000) |
Fair value at end of year | 50,131,000 | 42,648,000 |
Funded (underfunded) status at end of year | 4,730,000 | 2,126,000 |
Supplemental Retirement Plan | ||
Change in projected benefit obligation | ||
Obligation at beginning of year | 8,830,000 | 9,204,000 |
Service cost | 283,000 | 354,000 |
Interest cost | 349,000 | 309,000 |
Actuarial loss/(gain) | 770,000 | (499,000) |
Benefits paid | (610,000) | (538,000) |
Obligation at end of year | 9,622,000 | 8,830,000 |
Change in plan assets | ||
Employer contribution | 610,000 | 538,000 |
Benefits paid | (610,000) | (538,000) |
Funded (underfunded) status at end of year | (9,622,000) | (8,830,000) |
Postretirement Healthcare Plan | ||
Change in projected benefit obligation | ||
Obligation at beginning of year | 598,000 | 617,000 |
Service cost | 25,000 | 23,000 |
Interest cost | 25,000 | 22,000 |
Actuarial loss/(gain) | 76,000 | (30,000) |
Benefits paid | (35,000) | (34,000) |
Obligation at end of year | 689,000 | 598,000 |
Change in plan assets | ||
Employer contribution | 35,000 | 33,000 |
Benefits paid | (35,000) | (33,000) |
Funded (underfunded) status at end of year | $ (689,000) | $ (598,000) |
Pension and Retirement Plans _3
Pension and Retirement Plans - Schedule of Amounts Recognized in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets/(liabilities) | $ 4,730 | $ 2,126 |
Supplemental Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets/(liabilities) | (9,622) | (8,830) |
Postretirement Healthcare Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets/(liabilities) | $ (689) | $ (598) |
Pension and Retirement Plans _4
Pension and Retirement Plans - Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss/(gain) | $ 3,709 | $ 5,427 |
Prior service (benefit) | (7) | (12) |
Total | 3,702 | 5,415 |
Supplemental Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss/(gain) | 1,128 | 358 |
Total | 1,128 | 358 |
Postretirement Healthcare Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss/(gain) | (34) | (113) |
Total | $ (34) | $ (113) |
Pension and Retirement Plans _5
Pension and Retirement Plans - Certain Disaggregated Information to Retirement Plans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | $ 45,401 | $ 40,522 | $ 43,943 |
Accumulated benefit obligation | 45,401 | 40,522 | |
Fair value of plan assets | 50,131 | 42,648 | 45,247 |
Funded status at end of year | 4,730 | 2,126 | |
Supplemental Retirement Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | 9,622 | 8,830 | $ 9,204 |
Accumulated benefit obligation | 9,207 | 8,567 | |
Funded status at end of year | $ (9,622) | $ (8,830) |
Pension and Retirement Plans _6
Pension and Retirement Plans - Components of Net Periodic Benefit Cost and Amounts Recognized in Other Comprehensive Income/ (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amounts recognized in other comprehensive income/( loss) | |||
Total recognized in other comprehensive income/( loss) | $ (864) | $ (124) | $ (6,545) |
Pension Plan | |||
Net periodic benefit cost | |||
Interest cost | 1,680 | 1,557 | |
Expected return on assets | (2,721) | (2,891) | |
Amortization of prior service credit | (4) | (4) | |
Amortization of net actuarial loss/(gain) | 154 | 106 | |
Net periodic benefit cost | (891) | (1,232) | |
Amounts recognized in other comprehensive income/( loss) | |||
Net actuarial loss/(gain) | (1,563) | 512 | |
Amortization of prior service credit | 4 | 4 | |
Amortization of net actuarial gain | (154) | (106) | |
Total recognized in other comprehensive income/( loss) | (1,713) | 410 | |
Total recognized in net periodic benefit cost and other comprehensive income/( loss) | (2,604) | (822) | |
Supplemental Retirement Plan | |||
Net periodic benefit cost | |||
Service cost | 283 | 354 | |
Interest cost | 349 | 309 | |
Amortization of net actuarial loss/(gain) | 4 | ||
Net periodic benefit cost | 632 | 667 | |
Amounts recognized in other comprehensive income/( loss) | |||
Net actuarial loss/(gain) | 770 | (499) | |
Amortization of prior service credit | (4) | ||
Total recognized in other comprehensive income/( loss) | 770 | (503) | |
Total recognized in net periodic benefit cost and other comprehensive income/( loss) | 1,402 | 164 | |
Postretirement Healthcare Plan | |||
Net periodic benefit cost | |||
Service cost | 25 | 23 | |
Interest cost | 25 | 22 | |
Amortization of net actuarial loss/(gain) | (3) | ||
Net periodic benefit cost | 47 | 45 | |
Amounts recognized in other comprehensive income/( loss) | |||
Net actuarial loss/(gain) | 76 | (30) | |
Amortization of net actuarial gain | 3 | ||
Total recognized in other comprehensive income/( loss) | 79 | (30) | |
Total recognized in net periodic benefit cost and other comprehensive income/( loss) | $ 126 | $ 15 |
Pension and Retirement Plans _7
Pension and Retirement Plans - Schedule of Weighted-average Assumptions Used to Determine Projected Benefit Obligations and Net Periodic Benefit Cost (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.22% | 4.23% |
Discount rate | 4.23% | 3.58% |
Expected long-term return on plan assets | 6.50% | 6.50% |
Supplemental Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.04% | 4.10% |
Rate of compensation increase | 4.00% | 4.00% |
Discount rate | 4.10% | 3.39% |
Rate of compensation increase | 4.00% | 4.00% |
Postretirement Healthcare Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.26% | 4.22% |
Discount rate | 4.22% | 3.58% |
Pension and Retirement Plans _8
Pension and Retirement Plans - Schedule of Pension Plan Weighted-average Asset Allocations by Asset (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations percentage | 100.00% | 100.00% |
Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations percentage | 53.00% | 60.00% |
Debt Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations percentage | 36.00% | 35.00% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations percentage | 3.00% | 1.00% |
Cash and Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted average asset allocations percentage | 8.00% | 4.00% |
Pension and Retirement Plans _9
Pension and Retirement Plans - Summary of Various Categories of Pension Plan Assets (Details) - Pension Plan - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 50,131 | $ 42,648 | $ 45,247 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 42,934 | 36,114 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 7,197 | 6,534 | |
Cash and Cash Equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 4,834 | 3,520 | |
Cash and Cash Equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 4,834 | 3,520 | |
Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 7,197 | 6,534 | |
Fixed Income | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 7,197 | 6,534 | |
Common Stock, Large Cap Core | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 17,180 | 16,127 | |
Common Stock, Large Cap Core | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 17,180 | 16,127 | |
Common Stock, Small Cap Core | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 2,627 | 2,090 | |
Common Stock, Small Cap Core | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 2,627 | 2,090 | |
Mutual Funds, Domestic Equity | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 3,931 | 4,320 | |
Mutual Funds, Domestic Equity | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 3,931 | 4,320 | |
Mutual Funds, International | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 3,650 | 3,409 | |
Mutual Funds, International | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 3,650 | 3,409 | |
Mutual Funds, Domestic Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 10,712 | 6,648 | |
Mutual Funds, Domestic Fixed Income | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 10,712 | $ 6,648 |
Pension and Retirement Plans_10
Pension and Retirement Plans - Information to Retirement Plans with Accumulated Benefit Obligation in Excess of Plan Assets (Details) - Postretirement Healthcare Plan - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 689 | $ 598 |
Accumulated benefit obligation | $ 689 | $ 598 |
Pension and Retirement Plans_11
Pension and Retirement Plans - Schedule of Assumed Health Care Cost Trend Rates (Details) - Postretirement Healthcare Plan | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Health care cost trend rate assumed for next year | 4.00% | 4.00% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.00% | 4.00% |
Year that the rate reaches the ultimate trend rate | 2019 | 2018 |
Pension and Retirement Plans_12
Pension and Retirement Plans - Schedule of Effect on One-percentage-point Change in Assumed Health Care Cost Trend Rates (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |
Effect on postretirement benefit obligation, one percentage point increase | $ 2 |
Effect on postretirement benefit obligation, one percentage point decrease | $ (2) |
Pension and Retirement Plans_13
Pension and Retirement Plans - Schedule of Benefits Expected to be Paid in the Next Ten Years (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Year-ended December 31, | |
2020 | $ 2,375 |
2021 | 2,434 |
2022 | 2,588 |
2023 | 2,697 |
2024 | 2,768 |
2025-2029 inclusive | 14,866 |
Ten year total | 27,728 |
Pension Plan | |
Year-ended December 31, | |
2020 | 1,751 |
2021 | 1,813 |
2022 | 1,948 |
2023 | 2,061 |
2024 | 2,135 |
2025-2029 inclusive | 11,784 |
Ten year total | 21,492 |
Supplemental Retirement Plan | |
Year-ended December 31, | |
2020 | 594 |
2021 | 591 |
2022 | 609 |
2023 | 605 |
2024 | 602 |
2025-2029 inclusive | 2,916 |
Ten year total | 5,917 |
Postretirement Healthcare Plan | |
Year-ended December 31, | |
2020 | 30 |
2021 | 30 |
2022 | 31 |
2023 | 31 |
2024 | 31 |
2025-2029 inclusive | 166 |
Ten year total | $ 319 |
Pension and Retirement Plans_14
Pension and Retirement Plans - Schedule of Estimated Amounts That will be Amortized from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service cost | $ (4) |
Total | (4) |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service cost | (4) |
Total | $ (4) |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding stock options | 0 | 16,377 | |
DSP Plan and 2017 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total shares issued under this plan | 4,484 | 4,164 | |
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options time-vest period | 5 years | ||
Options expire period | 10 years | ||
Restricted Stock | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options time-vest period | 3 years | ||
Restricted Stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options time-vest period | 5 years | ||
Performance-Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options time-vest period | 3 years | ||
Time Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options time-vest period | 3 years |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Stock Options Transactions and Changes (Details) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Number of Options, Outstanding at beginning of year | 16,377 |
Number of Options, Expired | (2,600) |
Number of Options, Exercised | (13,777) |
Number of Options, Outstanding at end of year | 0 |
Weighted Average Exercise Price, Outstanding at beginning of year | $ / shares | $ 29.21 |
Weighted Average Exercise Price, Expired | $ / shares | 29.21 |
Weighted Average Exercise Price, Exercised | $ / shares | $ 29.21 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Non-vested Restricted Shares Outstanding (Details) - Restricted Stock - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Non-vested at beginning of year | 41,311 | 43,240 |
Number of Shares, Granted | 11,330 | 17,373 |
Number of Shares, Vested | (14,642) | (15,760) |
Number of Shares, Forfeited | (1,878) | (3,542) |
Number of Shares, Non-vested at end of year | 36,121 | 41,311 |
Weighted Average Grant Value, Non-vested at beginning of year | $ 65.10 | $ 53.13 |
Weighted Average Grant Value, Granted | 75.67 | 80.43 |
Weighted Average Grant Value, Vested | 60.55 | 50.10 |
Weighted Average Grant Value, Forfeited | 65.33 | 60.84 |
Weighted Average Grant Value, Non-vested at end of year | $ 70.25 | $ 65.10 |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Non-vested Performance-Based Restricted Stock Units Outstanding (Details) - Performance-Based Restricted Stock Units - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Units, Non-vested at beginning of year | 41,411 | 21,613 |
Number of Units, Granted | 28,542 | 23,511 |
Number of Units, Vested (Performance achieved) | (12,697) | |
Number of Units, Forfeited | (3,713) | |
Number of Units, Non-vested at end of year | 57,256 | 41,411 |
Weighted Average Grant Value, Non-vested at beginning of year | $ 66.39 | $ 56.05 |
Weighted Average Grant Value, Granted | 73 | 76.56 |
Weighted Average Grant Value, Vested (Performance achieved) | 46 | |
Weighted Average Grant Value, Forfeited | 70.68 | |
Weighted Average Grant Value, Non-vested at end of year | $ 72.82 | $ 66.39 |
Share-Based Compensation - Su_4
Share-Based Compensation - Summary of Non-vested Time-Based Restricted Stock Units Outstanding (Details) - Time Based Restricted Stock Units - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares, Non-vested at beginning of year | 6,777 | |
Number of Shares, Granted | 8,132 | 7,839 |
Number of Shares, Vested | (2,251) | (225) |
Number of Shares, Forfeited | (837) | |
Number of Shares, Non-vested at end of year | 12,658 | 6,777 |
Weighted Average Grant Value, Non-vested at beginning of year | $ 76.56 | |
Weighted Average Grant Value, Granted | 73 | $ 76.56 |
Weighted Average Grant Value, Vested | 76.56 | 76.56 |
Weighted Average Grant Value, Forfeited | 76.56 | |
Weighted Average Grant Value, Non-vested at end of year | $ 74.27 | $ 76.56 |
Share-Based Compensation - Sche
Share-Based Compensation - Schedule of Amounts Recognized in Consolidated Income Statement for Restricted Stock Awards, Time Based Restricted Stock Units and Performance Based Restricted Stock Units (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation [Abstract] | |||
Share-based compensation expense | $ 2,632 | $ 2,592 | $ 1,045 |
Related income tax benefit | $ 733 | $ 729 | $ 427 |
Financial Instruments with Of_3
Financial Instruments with Off-Balance-Sheet Risk - Summary of Off-Balance-Sheet Financial Instruments with Contractual Amounts Include Present Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Standby Letters of Credit | ||
Financial instruments whose contractual amount represents credit risk: | ||
Financial instruments with off-balance-sheet risk | $ 9,150 | $ 8,752 |
Unused Portion of Existing Lines of Credit | ||
Financial instruments whose contractual amount represents credit risk: | ||
Financial instruments with off-balance-sheet risk | 428,020 | 368,410 |
Origination of New Loans | ||
Financial instruments whose contractual amount represents credit risk: | ||
Financial instruments with off-balance-sheet risk | 24,413 | $ 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 | $ 3,909 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |||
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 | ||
Existence of option to expire | true | ||
Total rental expense | $ 5.7 | $ 4.7 | $ 4.7 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Right-of-Use Asset and Net Lease Liability (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Right-of-use asset | $ 33,587 |
Operating lease liabilities | $ 35,054 |
Commitments and Contingencies_3
Commitments and Contingencies - Summary of Components of Operating Lease Cost and Other Related Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | |
Operating lease cost | $ 5,280 |
Variable lease cost (Cost excluded from lease payments) | 2 |
Sublease income | (64) |
Total Operating Lease Cost | 5,218 |
Other Information | |
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows from operating leases | 5,027 |
Operating Lease - Operating Cash Flows (Liability reduction) | 3,868 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 37,728 |
Weighted average lease term - operating leases | 8 years 1 month 24 days |
Weighted average discount rate - operating leases | 3.39% |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule of Total Minimum Lease Payments Due in Future Periods under Lease Agreements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Leases Future Minimum Payments Due [Abstract] | ||
2020 | $ 5,478 | |
2021 | 5,523 | |
2022 | 5,371 | |
2023 | 5,021 | |
2024 | 4,355 | |
Thereafter | 14,553 | |
Total minimum lease payments | 40,301 | |
Less: interest | (5,247) | |
Total lease liability | $ 35,054 | |
2019 | $ 4,448 | |
2020 | 4,661 | |
2021 | 4,662 | |
2022 | 4,553 | |
2023 | 4,455 | |
Thereafter | 17,128 | |
Total minimum lease payments | $ 39,907 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) $ in Billions | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2015 | Dec. 31, 2009 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||
Tier 1 risk based capital to risk weighted assets | 12.70% | 12.10% | |||
Capital to risk weighted assets | 13.60% | 13.20% | |||
Tier 1 capital to average assets of leverage ratio | 9.00% | 8.50% | |||
Excess tier one capital deduction category one percentage | 10.00% | ||||
Excess tier one capital deduction percentage | 15.00% | ||||
Minimum | |||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||
Common equity tier 1 risk based capital to risk weighted assets | 7.00% | 4.50% | |||
Tier 1 risk based capital to risk weighted assets | 8.50% | 6.00% | |||
Capital to risk weighted assets | 10.50% | 8.00% | |||
Tier 1 capital to average assets of leverage ratio | 9.00% | 4.00% | |||
Capital conservation buffer rate | 2.50% | ||||
Minimum | U.S. Government and Agency Securities | Standardized Approach | |||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||
Tier 1 risk based capital to risk weighted assets | 0.00% | ||||
Maximum | |||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||
Total consolidated assets | $ 10 | $ 15 | |||
Maximum | U.S. Government and Agency Securities | Standardized Approach | |||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | |||||
Tier 1 risk based capital to risk weighted assets | 1250.00% |
Shareholders' Equity - Minimum
Shareholders' Equity - Minimum Capital Requirements were Considered Well Capitalized by FRB and FDIC (Details) - USD ($) | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Jan. 01, 2015 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Total capital (to risk-weighted assets), Actual, Amount | $ 272,727,000 | $ 189,888,000 | ||
Tier I capital (to risk-weighted assets), Actual, Amount | 254,497,000 | 173,070,000 | ||
Common equity tier I capital (to risk-weighted assets), Actual, Amount | 254,497,000 | 173,070,000 | ||
Tier I capital (to average assets), Actual, Amount | $ 254,497,000 | $ 173,070,000 | ||
Total capital (to risk-weighted assets), Actual, Ratio | 13.60% | 13.20% | ||
Tier I capital (to risk-weighted assets), Actual, Ratio | 12.70% | 12.10% | ||
Common equity tier I capital (to risk-weighted assets), Actual, Ratio | 12.70% | 12.10% | ||
Tier I capital (to average assets), Actual, Ratio | 9.00% | 8.50% | ||
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Amount | $ 210,342,000 | $ 114,666,000 | ||
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Amount | 170,277,000 | 86,000,000 | ||
Common equity tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Amount | 140,228,000 | 64,500,000 | ||
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Amount | $ 113,365,000 | $ 81,507,000 | ||
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Ratio | 10.50% | 8.00% | ||
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Ratio | 8.50% | 6.00% | ||
Common equity tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Ratio | 7.00% | 4.50% | ||
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Ratio | 4.00% | 4.00% | ||
Minimum | ||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Total capital (to risk-weighted assets), Actual, Ratio | 10.50% | 8.00% | ||
Tier I capital (to risk-weighted assets), Actual, Ratio | 8.50% | 6.00% | ||
Tier I capital (to average assets), Actual, Ratio | 9.00% | 4.00% | ||
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Phase-In Schedule, Amount | $ 141,541,000 | |||
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 | $ 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 | 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 | 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 | $ 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% | |||
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% | |||
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% | |||
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Ratio | 4.00% | |||
Cambridge Trust Company | ||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Total capital (to risk-weighted assets), Actual, Amount | $ 271,034,000 | $ 185,507,000 | ||
Tier I capital (to risk-weighted assets), Actual, Amount | 252,804,000 | 168,689,000 | ||
Common equity tier I capital (to risk-weighted assets), Actual, Amount | 252,804,000 | 168,689,000 | ||
Tier I capital (to average assets), Actual, Amount | $ 252,804,000 | $ 168,689,000 | ||
Total capital (to risk-weighted assets), Actual, Ratio | 13.50% | 12.90% | ||
Tier I capital (to risk-weighted assets), Actual, Ratio | 12.60% | 11.80% | ||
Common equity tier I capital (to risk-weighted assets), Actual, Ratio | 12.60% | 11.80% | ||
Tier I capital (to average assets), Actual, Ratio | 8.90% | 8.30% | ||
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Amount | $ 210,341,000 | $ 114,666,000 | ||
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Amount | 170,276,000 | 86,000,000 | ||
Common equity tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Amount | 140,227,000 | 64,500,000 | ||
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Amount | $ 113,364,000 | $ 81,507,000 | ||
Total capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Ratio | 10.50% | 8.00% | ||
Tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Ratio | 8.50% | 6.00% | ||
Common equity tier I capital (to risk-weighted assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, Ratio | 7.00% | 4.50% | ||
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer, 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 | $ 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 | 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 | 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 | $ 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% | |||
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% | |||
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% | |||
Tier I capital (to average assets), Minimum Capital Required For Capital Adequacy Plus Capital Conservation Buffer Basel III Fully Phased In, Ratio | 4.00% | |||
Total capital (to risk-weighted assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 200,325,000 | $ 143,333,000 | ||
Tier I capital (to risk-weighted assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | 160,260,000 | 114,666,000 | ||
Common equity tier I capital (to risk-weighted assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | 130,211,000 | 93,166,000 | ||
Tier I capital (to average assets), Minimum To Be Well-Capitalized Under Prompt Corrective Action Provisions, Amount | $ 141,705,000 | $ 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% |
Other Income - Schedule of Comp
Other Income - Schedule of Components of Other Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income And Expenses [Abstract] | |||
Safe deposit box income | $ 333 | $ 342 | $ 348 |
Loan fee income | 1,030 | 358 | 473 |
Miscellaneous income | 564 | 569 | 334 |
Total other income | $ 1,927 | $ 1,269 | $ 1,155 |
Other Operating Expenses - Comp
Other Operating Expenses - Components of Other Operating Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Director fees | $ 527 | $ 724 | $ 576 |
Charitable donations & sponsorships | 575 | 518 | 432 |
Printing and supplies | 437 | 272 | 251 |
Travel and entertainment | 579 | 456 | 339 |
Physical security | 86 | 131 | 172 |
Postage and mailing | 246 | 201 | 229 |
Miscellaneous expense | 337 | (331) | 885 |
Total other operating expenses | 3,199 | 2,264 | 3,144 |
Membership | |||
Dues and memberships | $ 412 | $ 293 | $ 260 |
Other Comprehensive Income - Su
Other Comprehensive Income - Summary of Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unrealized (losses)/gains on available for sale securities, before tax amount | |||
Unrealized holding (losses)/gains arising during the period, before tax amount | $ 3,267 | $ (231) | $ 187 |
Reclassification adjustment for (gains)/losses recognized in net income, before tax amount | 81 | (2) | 3 |
Derivatives, before tax amount | |||
Change in interest rate contracts, before tax amount | 1,134 | 1,045 | |
Defined benefit retirement plans, before tax amount | |||
Net change in retirement liability, before tax amount | 864 | 124 | 6,545 |
Total Other Comprehensive Income/(Loss), before tax amount | 5,346 | 936 | 6,735 |
Unrealized (losses)/gains on available for sale securities, tax (expense) or benefit | |||
Unrealized holding (losses)/gains arising during the period, tax (expense) or benefit | (767) | (11) | (59) |
Reclassification adjustment for (gains)/losses recognized in net income, tax (expense) or benefit | (19) | (2) | |
Derivatives, tax (expense) or benefit | |||
Change in interest rate contracts, tax (expense) or benefit | (313) | (294) | |
Defined benefit retirement plans, tax (expense) or benefit | |||
Net change in retirement liability, tax (expense) or benefit | (241) | (35) | (2,674) |
Total Other Comprehensive Income/(Loss), tax (expense) or benefit | (1,340) | (340) | (2,735) |
Unrealized (losses)/gains on available for sale securities, net-of-tax amount | |||
Unrealized holding (losses)/gains arising during the period, net-of-tax amount | 2,500 | (242) | 128 |
Reclassification adjustment for (gains)/losses recognized in net income, net-of-tax amount | 62 | (2) | 1 |
Derivatives, net-of-tax amount | |||
Change in interest rate contracts, net-of-tax amount | 821 | 751 | |
Defined benefit retirement plans, net-of-tax amount | |||
Net change in retirement liability, net-of-tax amount | 623 | 89 | 3,871 |
Other comprehensive income/(loss) | $ 4,006 | $ 596 | $ 4,000 |
Other Comprehensive Income - _2
Other Comprehensive Income - Summary of Reclassifications out of Accumulated Other Comprehensive Income ("AOCI") (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Unrealized gains and losses on available for sale securities | $ (79) | $ 2 | $ (3) | ||||||||
Tax benefit or (expense) | $ (2,673) | $ (2,708) | $ (1,540) | $ (1,740) | $ (1,585) | $ (2,105) | $ (1,901) | $ (1,616) | (8,661) | (7,207) | (13,358) |
Net income | $ 7,109 | $ 7,676 | $ 4,272 | $ 6,198 | $ 5,306 | $ 6,659 | $ 6,111 | $ 5,805 | 25,257 | 23,881 | 14,816 |
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 | (81) | 2 | (3) | ||||||||
Tax benefit or (expense) | 19 | 2 | |||||||||
Net income | $ (62) | $ 2 | $ (1) |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Reconciliation Between Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||||||||||
Net income | $ 7,109 | $ 7,676 | $ 4,272 | $ 6,198 | $ 5,306 | $ 6,659 | $ 6,111 | $ 5,805 | $ 25,257 | $ 23,881 | $ 14,816 |
Less dividends and undistributed earnings allocated to participating securities | (210) | (239) | (157) | ||||||||
Net income applicable to common shareholders | $ 25,047 | $ 23,642 | $ 14,659 | ||||||||
Denominator: | |||||||||||
Weighted average number of shares outstanding, basic | 4,939,973 | 4,815,020 | 4,682,109 | 4,072,805 | 4,065,681 | 4,064,620 | 4,059,927 | 4,053,355 | 4,629,255 | 4,061,529 | 4,030,530 |
Earnings per common share - basic | $ 1.43 | $ 1.58 | $ 0.91 | $ 1.51 | $ 1.29 | $ 1.62 | $ 1.49 | $ 1.42 | $ 5.41 | $ 5.82 | $ 3.64 |
Numerator: | |||||||||||
Net income | $ 7,109 | $ 7,676 | $ 4,272 | $ 6,198 | $ 5,306 | $ 6,659 | $ 6,111 | $ 5,805 | $ 25,257 | $ 23,881 | $ 14,816 |
Less dividends and undistributed earnings allocated to participating securities | (210) | (239) | (157) | ||||||||
Net income applicable to common shareholders | $ 25,047 | $ 23,642 | $ 14,659 | ||||||||
Denominator: | |||||||||||
Weighted average number of shares outstanding, basic | 4,939,973 | 4,815,020 | 4,682,109 | 4,072,805 | 4,065,681 | 4,064,620 | 4,059,927 | 4,053,355 | 4,629,255 | 4,061,529 | 4,030,530 |
Dilutive effect of common stock equivalents | 33,000 | 37,000 | 35,000 | ||||||||
Weighted average diluted common shares outstanding | 4,980,439 | 4,842,965 | 4,715,724 | 4,106,658 | 4,102,546 | 4,101,378 | 4,094,489 | 4,071,975 | 4,661,720 | 4,098,633 | 4,065,754 |
Earnings per common share - diluted | $ 1.42 | $ 1.57 | $ 0.90 | $ 1.49 | $ 1.28 | $ 1.61 | $ 1.48 | $ 1.41 | $ 5.37 | $ 5.77 | $ 3.61 |
Derivative And Hedging Activi_3
Derivative And Hedging Activities - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Notional amount | $ 9,600,000 | $ 811,000 |
Estimated amount will be reclassified out of AOCI in to earnings | 295,000 | |
Fair value of derivative liability | 13,230,000 | 5,961,000 |
Minimum | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Minimum collateral posting threshold of derivative counterparties | 10,400,000 | 260,000 |
Accrued Interest | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Fair value of derivative liability | $ 9,600,000 | 811,000 |
Interest Rate Floor | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Notional amount | $ 150,000,000 |
Derivative And Hedging Activi_4
Derivative And Hedging Activities - Summary of Fair Values of Derivative Instruments in the Company's Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Fair value | $ 15,912 | $ 7,780 |
Derivative Liabilities, Fair value | 13,230 | 5,961 |
Derivatives Designated as Hedging Instruments | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Fair value | 2,911 | 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 | 2,911 | 1,970 |
Derivatives Not Designated as Hedging Instruments | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Derivative Assets, Fair value | 13,001 | 5,810 |
Derivative Liabilities, Fair value | 13,230 | 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 | 241,187 | 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 | 12,980 | 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 | 241,187 | 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 | 12,980 | 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 | 21 | 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 | 88,489 | 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 | $ 250 | $ 179 |
Derivative And Hedging Activi_5
Derivative And Hedging Activities - Summary of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Details) - Cash Flow Hedging - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI | $ 984 | $ 1,002 |
Amount of Gain or (Loss) Recognized in OCI Included Component | 2,120 | |
Amount of Gain or (Loss) Recognized in OCI Excluded Component | (1,136) | 1,002 |
Amount of Gain or (Loss) Reclassified from AOCI into Income | (194) | (43) |
Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component | (194) | (43) |
Interest Income | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Amount of Gain or (Loss) Reclassified from AOCI into Income | (194) | (43) |
Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component | (194) | (43) |
Interest Rate Contracts | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Amount of Gain or (Loss) Recognized in OCI | 984 | 1,002 |
Amount of Gain or (Loss) Recognized in OCI Included Component | 2,120 | |
Amount of Gain or (Loss) Recognized in OCI Excluded Component | $ (1,136) | $ 1,002 |
Derivative And Hedging Activi_6
Derivative And Hedging Activities - Summary of Derivative Financial Instruments Income Statement (Details) - Interest Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
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 | $ (194) | $ (43) |
Interest Rate Contracts | ||
The effects of fair value and cash flow hedging: | ||
Amount of gain or (loss) reclassed from AOCI into income | (194) | (43) |
Amount of gain or (loss) reclassed from AOCI into income - Excluded Component | $ (194) | $ (43) |
Derivative And Hedging Activi_7
Derivative And Hedging Activities - Summary of Derivative Financial Instruments Not Designated as Hedging Instruments (Details) - Derivatives Not Designated as Hedging Instruments - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Amount of Gain or (Loss) Recognized in Income on Derivative | $ 311 | $ 276 | $ 426 |
Other contracts | Other Income | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Amount of Gain or (Loss) Recognized in Income on Derivative | $ 311 | $ 276 | $ 426 |
Derivative And Hedging Activi_8
Derivative And Hedging Activities - Schedule of Financial Instruments Eligible for Offset in Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Offsetting [Abstract] | ||
Gross Amounts of Recognized, Derivative assets | $ 15,912 | $ 7,780 |
Net Amounts Recognized, Derivative Assets | 15,912 | 7,780 |
Gross Amounts Not Offset, Financial Instruments, Derivative Assets | 3,128 | 3,099 |
Gross Amounts Not Offset, Collateral Pledged (Received), Derivative Assets | (743) | |
Gross Amounts Not Offset, Net amount, Derivative Assets | 12,784 | 3,938 |
Gross Amounts of Recognized, Derivative Liablities | 13,230 | 5,961 |
Net Amounts Recognized, Derivative Liablities | 13,230 | 5,961 |
Gross Amounts Not Offset, Financial Instruments, Derivative Liablities | 3,128 | 3,099 |
Gross Amounts Not Offset, Collateral Pledged (Received), Derivative Liablities | 9,645 | 260 |
Gross Amounts Not Offset, Net amount, Derivative Liablities | $ 457 | $ 2,602 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Values and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets | ||
Securities available for sale | $ 140,330 | $ 168,163 |
Securities held to maturity | 264,114 | 281,310 |
FHLB Boston stock | 7,854 | 6,844 |
Recurring Basis | Carrying Value | ||
Financial assets | ||
Cash and cash equivalents | 61,335 | 18,473 |
Securities available for sale | 140,330 | 168,163 |
Securities held to maturity | 258,172 | 282,869 |
Loans, net | 2,208,548 | 1,543,004 |
Loans held for sale | 1,546 | |
FHLB Boston stock | 7,854 | 6,844 |
Accrued interest receivable | 7,052 | 5,762 |
Mortgage servicing rights | 1,321 | 666 |
Interest rate contracts | 2,911 | 1,970 |
Loan level interest rate swaps | 12,980 | 5,782 |
Risk participation agreements out to counterparties | 21 | 28 |
Financial liabilities | ||
Deposits | 2,358,878 | 1,811,410 |
Short-term borrowings | 135,691 | 90,000 |
Long-term borrowings | 3,409 | |
Loan level interest rate swaps | 12,980 | 5,782 |
Risk participation agreements in with counterparties | 250 | 179 |
Recurring Basis | Estimated Fair Value | ||
Financial assets | ||
Cash and cash equivalents | 61,335 | 18,473 |
Securities available for sale | 140,330 | 168,163 |
Securities held to maturity | 264,114 | 281,310 |
Loans, net | 2,160,087 | 1,484,905 |
Loans held for sale | 2,051 | |
FHLB Boston stock | 7,854 | 6,844 |
Accrued interest receivable | 7,052 | 5,762 |
Mortgage servicing rights | 1,526 | 941 |
Interest rate contracts | 2,911 | 1,970 |
Loan level interest rate swaps | 12,980 | 5,782 |
Risk participation agreements out to counterparties | 21 | 28 |
Financial liabilities | ||
Deposits | 2,358,089 | 1,809,051 |
Short-term borrowings | 135,744 | 90,000 |
Long-term borrowings | 3,363 | |
Loan level interest rate swaps | 12,980 | 5,782 |
Risk participation agreements in with counterparties | $ 250 | $ 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 | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 140,330 | $ 168,163 |
U.S. GSE Obligations | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 37,848 | 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 | 37,848 | 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 | 37,848 | 74,039 |
Recurring Basis | Mortgage Backed Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Securities available for sale | 102,482 | 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 | 102,482 | 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 | 12,980 | 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 | 12,980 | 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 | 21 | 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 | 21 | 28 |
Recurring Basis | Interest Rate Contracts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other assets | 2,911 | 1,970 |
Recurring Basis | Interest Rate Contracts | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other assets | 2,911 | 1,970 |
Recurring Basis | Mirror Swaps with Counterparties | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other liabilities | 12,980 | 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 | 12,980 | 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 | 250 | 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 | $ 250 | $ 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 ($) | Dec. 31, 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 | $ 4,250,000 | |
Non-recurring | Collateral Dependent Impaired Loans | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | 2,541,000 | |
Non-recurring | Loans Held for Sale | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | 1,546,000 | |
Non-recurring | Other Real Estate Owned | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | 163,000 | |
Non-recurring | Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | 1,546,000 | |
Non-recurring | Level 1 | Loans Held for Sale | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | 1,546,000 | |
Non-recurring | Level 3 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | 2,704,000 | |
Non-recurring | Level 3 | Collateral Dependent Impaired Loans | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | 2,541,000 | |
Non-recurring | Level 3 | Other Real Estate Owned | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Assets, fair value, non-recurring basis | $ 163,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Assets, fair value, non-recurring basis | $ 0 | |
Transfers between levels | $ 0 | $ 0 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest and Dividend Income | $ 26,415 | $ 26,336 | $ 24,470 | $ 19,118 | $ 18,385 | $ 17,602 | $ 16,936 | $ 16,132 | $ 96,339 | $ 69,055 | $ 61,191 |
Interest Expense | 4,807 | 5,285 | 4,694 | 2,857 | 1,975 | 1,431 | 1,082 | 979 | 17,643 | 5,467 | 3,587 |
Net interest and dividend income | 21,608 | 21,051 | 19,776 | 16,261 | 16,410 | 16,171 | 15,854 | 15,153 | 78,696 | 63,588 | 57,604 |
Provision for (Release of) Loan Losses | 331 | 2,170 | 596 | (93) | 715 | 457 | (79) | 409 | 3,004 | 1,502 | 362 |
Net interest and dividend income after provision for loan losses | 21,277 | 18,881 | 19,180 | 16,354 | 15,695 | 15,714 | 15,933 | 14,744 | 75,692 | 62,086 | 57,242 |
Noninterest Income | 9,933 | 10,366 | 8,145 | 7,957 | 8,038 | 8,929 | 7,844 | 8,178 | 36,401 | 32,989 | 30,224 |
Noninterest Expense | 21,428 | 18,863 | 21,513 | 16,373 | 16,842 | 15,879 | 15,765 | 15,501 | 78,175 | 63,987 | 59,292 |
Income before income taxes | 9,782 | 10,384 | 5,812 | 7,938 | 6,891 | 8,764 | 8,012 | 7,421 | 33,918 | 31,088 | 28,174 |
Income tax expense | 2,673 | 2,708 | 1,540 | 1,740 | 1,585 | 2,105 | 1,901 | 1,616 | 8,661 | 7,207 | 13,358 |
Net income | $ 7,109 | $ 7,676 | $ 4,272 | $ 6,198 | $ 5,306 | $ 6,659 | $ 6,111 | $ 5,805 | $ 25,257 | $ 23,881 | $ 14,816 |
Share Data: | |||||||||||
Average Shares Outstanding, Basic | 4,939,973 | 4,815,020 | 4,682,109 | 4,072,805 | 4,065,681 | 4,064,620 | 4,059,927 | 4,053,355 | 4,629,255 | 4,061,529 | 4,030,530 |
Average Shares Outstanding, Diluted | 4,980,439 | 4,842,965 | 4,715,724 | 4,106,658 | 4,102,546 | 4,101,378 | 4,094,489 | 4,071,975 | 4,661,720 | 4,098,633 | 4,065,754 |
Basic Earnings Per Share | $ 1.43 | $ 1.58 | $ 0.91 | $ 1.51 | $ 1.29 | $ 1.62 | $ 1.49 | $ 1.42 | $ 5.41 | $ 5.82 | $ 3.64 |
Diluted earnings per share | $ 1.42 | $ 1.57 | $ 0.90 | $ 1.49 | $ 1.28 | $ 1.61 | $ 1.48 | $ 1.41 | $ 5.37 | $ 5.77 | $ 3.61 |
Condensed Financial Statement_3
Condensed Financial Statements of Parent Company - Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||||
Cash and cash equivalents | $ 61,335 | $ 18,473 | ||
Other assets | 42,291 | 27,629 | ||
Total assets | 2,855,563 | 2,101,384 | ||
Shareholders’ Equity | ||||
Total shareholders' equity | 286,561 | 167,026 | $ 147,957 | $ 134,671 |
Cambridge Bancorp [Member] | ||||
Assets | ||||
Cash and cash equivalents | 1,680 | 4,412 | ||
Other assets | 13 | |||
Investment in subsidiary | 284,868 | 162,614 | ||
Total assets | 286,561 | 167,026 | ||
Shareholders’ Equity | ||||
Total shareholders' equity | $ 286,561 | $ 167,026 |
Condensed Financial Statement_4
Condensed Financial Statements of Parent Company - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest expense | |||||||||||
Total interest expense | $ 4,807 | $ 5,285 | $ 4,694 | $ 2,857 | $ 1,975 | $ 1,431 | $ 1,082 | $ 979 | $ 17,643 | $ 5,467 | $ 3,587 |
Income tax benefit | 2,673 | 2,708 | 1,540 | 1,740 | 1,585 | 2,105 | 1,901 | 1,616 | 8,661 | 7,207 | 13,358 |
Income of parent company | 25,257 | 23,881 | 14,816 | ||||||||
Net income | $ 7,109 | $ 7,676 | $ 4,272 | $ 6,198 | $ 5,306 | $ 6,659 | $ 6,111 | $ 5,805 | 25,257 | 23,881 | 14,816 |
Cambridge Bancorp [Member] | |||||||||||
Interest and dividend income | |||||||||||
Dividends from subsidiary | 10,732 | 8,615 | 8,052 | ||||||||
Total income | 10,732 | 8,615 | 8,052 | ||||||||
Interest expense | |||||||||||
Other expenses | 132 | 116 | |||||||||
Total interest expense | 132 | 116 | |||||||||
Income before income taxes and equity in undistributed income of subsidiary | 10,600 | 8,499 | 8,052 | ||||||||
Income tax benefit | (36) | (32) | |||||||||
Income of parent company | 10,636 | 8,531 | 8,052 | ||||||||
Equity in undistributed income of subsidiary | 14,621 | 15,350 | 6,764 | ||||||||
Net income | $ 25,257 | $ 23,881 | $ 14,816 |
Condensed Financial Statement_5
Condensed Financial Statements of Parent Company - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ 7,109 | $ 7,676 | $ 4,272 | $ 6,198 | $ 5,306 | $ 6,659 | $ 6,111 | $ 5,805 | $ 25,257 | $ 23,881 | $ 14,816 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Change in other assets, net | (11,667) | (12,231) | (758) | ||||||||
Net cash provided by operating activities | 28,793 | 24,022 | 29,767 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Net cash (used in) provided by investing activities | (113,472) | (226,883) | (61,760) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from the issuance of common stock | 38,202 | ||||||||||
Cash dividends paid on common stock | (9,517) | (8,041) | (7,582) | ||||||||
Net cash provided by (used in) financing activities | 127,541 | 117,743 | 81,534 | ||||||||
Net (decrease)/increase in cash and cash equivalents | 42,862 | (85,118) | 49,541 | ||||||||
Cash and cash equivalents at beginning of period | 18,473 | 103,591 | 18,473 | 103,591 | 54,050 | ||||||
Cash and cash equivalents at end of period | 61,335 | 18,473 | 61,335 | 18,473 | 103,591 | ||||||
Cambridge Bancorp [Member] | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | 25,257 | 23,881 | 14,816 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Change in other assets, net | (13) | ||||||||||
Undistributed income of subsidiary | (14,621) | (15,350) | (6,764) | ||||||||
Net cash provided by operating activities | 10,623 | 8,531 | 8,052 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Cash paid in business combinations | (3,525) | ||||||||||
Investment in subsidiary | (38,202) | ||||||||||
Net cash (used in) provided by investing activities | (41,727) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Proceeds from the issuance of common stock | 38,576 | 761 | 1,522 | ||||||||
Repurchase of common stock | (687) | (574) | (470) | ||||||||
Cash dividends paid on common stock | (9,517) | (8,041) | (7,582) | ||||||||
Net cash provided by (used in) financing activities | 28,372 | (7,854) | (6,530) | ||||||||
Net (decrease)/increase in cash and cash equivalents | (2,732) | 677 | 1,522 | ||||||||
Cash and cash equivalents at beginning of period | $ 4,412 | $ 3,735 | 4,412 | 3,735 | 2,213 | ||||||
Cash and cash equivalents at end of period | $ 1,680 | $ 4,412 | $ 1,680 | $ 4,412 | $ 3,735 |