Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes | |
Trading Symbol | CNBKA | |
Entity Registrant Name | CENTURY BANCORP INC | |
Entity Central Index Key | 0000812348 | |
Entity Shell Company | false | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Address, State or Province | MA | |
Title of 12(b) Security | Class A Common Stock | |
Security Exchange Name | NASDAQ | |
Class A Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 3,650,449 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,917,460 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 85,014 | $ 89,540 |
Federal funds sold and interest-bearing deposits in other banks | 249,091 | 252,963 |
Total cash and cash equivalents | 334,105 | 342,503 |
Securities available-for-sale, amortized cost $261,939 and $336,751, respectively | 261,739 | 336,759 |
Securities held-to-maturity, fair value $2,188,465 and $1,991,421, respectively | 2,164,135 | 2,046,647 |
Federal Home Loan Bank of Boston, stock at cost | 14,025 | 17,974 |
Equity securities, amortized cost $1,635 and $1,635, respectively | 1,672 | 1,596 |
Loans, net: | ||
Total loans, net | 2,375,661 | 2,285,578 |
Less: allowance for loan losses | 29,097 | 28,543 |
Net loans | 2,346,564 | 2,257,035 |
Bank premises and equipment | 31,520 | 23,921 |
Accrued interest receivable | 13,275 | 14,406 |
Goodwill | 2,714 | 2,714 |
Other assets | 129,432 | 120,380 |
Total assets | 5,299,181 | 5,163,935 |
Deposits: | ||
Demand deposits | 797,455 | 813,478 |
Savings and NOW deposits | 1,759,401 | 1,707,019 |
Money market accounts | 1,249,923 | 1,325,888 |
Time deposits | 533,074 | 560,579 |
Total deposits | 4,339,853 | 4,406,964 |
Securities sold under agreements to repurchase | 307,235 | 154,240 |
Other borrowed funds | 209,188 | 202,378 |
Subordinated debentures | 36,083 | 36,083 |
Other liabilities | 77,862 | 63,831 |
Total liabilities | 4,970,221 | 4,863,496 |
Stockholders' Equity | ||
Preferred Stock – $1.00 par value; 100,000 shares authorized; no shares issued and outstanding | ||
Additional paid-in capital | 12,292 | 12,292 |
Retained earnings | 328,801 | 301,488 |
Stockholders' equity before adjustment of accumulated other comprehensive income (loss) | 346,661 | 319,348 |
Unrealized losses on securities available-for-sale, net of taxes | (150) | 6 |
Unrealized losses on securities transferred to held-to-maturity, net of taxes | (1,991) | (2,565) |
Pension liability, net of taxes | (15,560) | (16,350) |
Total accumulated other comprehensive loss, net of taxes | (17,701) | (18,909) |
Total stockholders' equity | 328,960 | 300,439 |
Total liabilities and stockholders' equity | 5,299,181 | 5,163,935 |
Construction and land development [Member] | ||
Loans, net: | ||
Total loans, net | 7,824 | 13,628 |
Commercial and industrial [Member] | ||
Loans, net: | ||
Total loans, net | 783,950 | 761,625 |
Municipal [Member] | ||
Loans, net: | ||
Total loans, net | 121,802 | 97,290 |
Commercial real estate [Member] | ||
Loans, net: | ||
Total loans, net | 765,385 | 750,362 |
Residential real estate [Member] | ||
Loans, net: | ||
Total loans, net | 364,317 | 348,250 |
Consumer and overdrafts [Member] | ||
Loans, net: | ||
Total loans, net | 21,748 | 22,083 |
Home equity [Member] | ||
Loans, net: | ||
Total loans, net | 310,635 | 292,340 |
Class A Common Stock [Member] | ||
Stockholders' Equity | ||
Common stock value | 3,650 | 3,608 |
Total stockholders' equity | 3,650 | 3,608 |
Class B Common Stock [Member] | ||
Stockholders' Equity | ||
Common stock value | 1,918 | 1,960 |
Total stockholders' equity | $ 1,918 | $ 1,960 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Amortized cost | $ 261,939 | $ 336,751 |
Held-to-maturity securities, fair value | 2,188,465 | 1,991,421 |
Equity securities, amortized cost | $ 1,635 | $ 1,635 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 100,000 | 100,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A Common Stock [Member] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 3,650,449 | 3,608,329 |
Class B Common Stock [Member] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, shares issued | 1,917,460 | 1,959,580 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest income | ||||
Loans | $ 22,117 | $ 20,167 | $ 65,106 | $ 57,613 |
Securities held-to-maturity | 14,623 | 11,507 | 43,006 | 32,930 |
Securities available-for-sale | 2,184 | 2,500 | 7,305 | 6,821 |
Federal funds sold and interest-bearing deposits in other banks | 928 | 591 | 3,204 | 2,239 |
Total interest income | 39,852 | 34,765 | 118,621 | 99,603 |
Interest expense | ||||
Savings and NOW deposits | 5,445 | 2,972 | 16,788 | 7,778 |
Money market accounts | 5,050 | 3,652 | 15,805 | 9,039 |
Time deposits | 3,038 | 2,571 | 8,724 | 7,465 |
Securities sold under agreements to repurchase | 697 | 288 | 1,572 | 657 |
Other borrowed funds and subordinated debentures | 1,852 | 2,078 | 5,274 | 5,793 |
Total interest expense | 16,082 | 11,561 | 48,163 | 30,732 |
Net interest income | 23,770 | 23,204 | 70,458 | 68,871 |
Provision for loan losses | 75 | 700 | 900 | |
Net interest income after provision for loan losses | 23,695 | 23,204 | 69,758 | 67,971 |
Other operating income | ||||
Service charges on deposit accounts | 2,310 | 2,137 | 6,801 | 6,268 |
Lockbox fees | 937 | 892 | 3,018 | 2,304 |
Net gains on sales of securities | 53 | 105 | 61 | 302 |
Gains on sales of mortgage loans | 0 | 154 | ||
Other income | 986 | 1,035 | 3,676 | 3,210 |
Total other operating income | 4,286 | 4,169 | 13,710 | 12,084 |
Operating expenses | ||||
Salaries and employee benefits | 10,670 | 10,570 | 32,621 | 32,331 |
Occupancy | 1,463 | 1,481 | 4,686 | 4,579 |
Equipment | 862 | 781 | 2,440 | 2,355 |
Other | 4,467 | 4,516 | 14,170 | 13,243 |
Total operating expenses | 17,462 | 17,348 | 53,917 | 52,508 |
Income before income taxes | 10,519 | 10,025 | 29,551 | 27,547 |
Provision for income taxes | 435 | 444 | 584 | 1,259 |
Net income | $ 10,084 | $ 9,581 | $ 28,967 | $ 26,288 |
Class A Common Stock [Member] | ||||
Share data: | ||||
Weighted average number of shares outstanding, basic | 3,650,449 | 3,608,329 | 3,627,076 | 3,608,129 |
Weighted average number of shares outstanding, diluted | 5,567,909 | 5,567,909 | 5,567,909 | 5,567,909 |
Basic earnings per share | $ 2.19 | $ 2.09 | $ 6.30 | $ 5.73 |
Diluted earnings per share | $ 1.81 | $ 1.72 | $ 5.20 | $ 4.72 |
Class B Common Stock [Member] | ||||
Share data: | ||||
Weighted average number of shares outstanding, basic | 1,917,460 | 1,959,580 | 1,940,833 | 1,959,780 |
Weighted average number of shares outstanding, diluted | 1,917,460 | 1,959,580 | 1,940,833 | 1,959,780 |
Basic earnings per share | $ 1.09 | $ 1.04 | $ 3.15 | $ 2.86 |
Diluted earnings per share | $ 1.09 | $ 1.04 | $ 3.15 | $ 2.86 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 10,084 | $ 9,581 | $ 28,967 | $ 26,288 |
Unrealized gains (losses) on securities: | ||||
Unrealized gains (losses) arising during period | 113 | (88) | (112) | 412 |
Less: reclassification adjustment for gains included in net income | (39) | (76) | (44) | (217) |
Total unrealized gains (losses) on securities | 74 | (164) | (156) | 195 |
Accretion of net unrealized losses transferred | 155 | 238 | 574 | 872 |
Defined benefit pension plans: | ||||
Amortization of prior service cost and loss included in net periodic benefit cost | 263 | 292 | 790 | 877 |
Other comprehensive income | 492 | 366 | 1,208 | 1,944 |
Comprehensive income | $ 10,576 | $ 9,947 | $ 30,175 | $ 28,232 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Class A Common Stock [Member] | Class B Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Retained Earnings [Member]Class A Common Stock [Member] | Retained Earnings [Member]Class B Common Stock [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning balance at Dec. 31, 2017 | $ 260,297 | $ 3,606 | $ 1,962 | $ 12,292 | $ 263,666 | $ (21,229) | ||
Net income | 26,288 | 26,288 | ||||||
Other comprehensive income, net of tax: | ||||||||
Unrealized holding gains arising during period, net of taxes | 195 | 195 | ||||||
Accretion of net unrealized losses transferred during the period, net of taxes | 872 | 872 | ||||||
Pension liability adjustment, net of taxes | 877 | 877 | ||||||
Adoption of ASU 2018-2, Income Statement-Reporting Comprehensive Income (Topic 220)-Reclassification of Certain Tax Effects from AOCI | 3,783 | (3,783) | ||||||
Adoption of ASU 2016-1, Financial Instruments-Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities | 29 | (29) | ||||||
Conversion of Class B Common Stock to Class A Common Stock | 2 | (2) | ||||||
Cash dividends | (1,299) | (353) | $ (1,299) | $ (353) | ||||
Ending balance at Sep. 30, 2018 | 286,877 | 3,608 | 1,960 | 12,292 | 292,114 | (23,097) | ||
Beginning balance at Jun. 30, 2018 | 277,481 | 3,608 | 1,960 | 12,292 | 283,084 | (23,463) | ||
Net income | 9,581 | 9,581 | ||||||
Other comprehensive income, net of tax: | ||||||||
Unrealized holding gains arising during period, net of taxes | (164) | (164) | ||||||
Accretion of net unrealized losses transferred during the period, net of taxes | 238 | 238 | ||||||
Pension liability adjustment, net of taxes | 292 | 292 | ||||||
Cash dividends | (432) | (119) | (432) | (119) | ||||
Ending balance at Sep. 30, 2018 | 286,877 | 3,608 | 1,960 | 12,292 | 292,114 | (23,097) | ||
Beginning balance at Dec. 31, 2018 | 300,439 | 3,608 | 1,960 | 12,292 | 301,488 | (18,909) | ||
Net income | 28,967 | 28,967 | ||||||
Other comprehensive income, net of tax: | ||||||||
Unrealized holding gains arising during period, net of taxes | (156) | (156) | ||||||
Accretion of net unrealized losses transferred during the period, net of taxes | 574 | 574 | ||||||
Pension liability adjustment, net of taxes | 790 | 790 | ||||||
Conversion of Class B Common Stock to Class A Common Stock | 42 | (42) | ||||||
Cash dividends | (1,304) | (350) | (1,304) | (350) | ||||
Ending balance at Sep. 30, 2019 | 328,960 | 3,650 | 1,918 | 12,292 | 328,801 | (17,701) | ||
Beginning balance at Jun. 30, 2019 | 318,937 | 3,620 | 1,948 | 12,292 | 319,270 | (18,193) | ||
Net income | 10,084 | 0 | 10,084 | 0 | ||||
Other comprehensive income, net of tax: | ||||||||
Unrealized holding gains arising during period, net of taxes | 74 | 74 | ||||||
Accretion of net unrealized losses transferred during the period, net of taxes | 155 | 155 | ||||||
Pension liability adjustment, net of taxes | 263 | 263 | ||||||
Conversion of Class B Common Stock to Class A Common Stock | 30 | (30) | ||||||
Cash dividends | (438) | (115) | $ (438) | $ (115) | ||||
Ending balance at Sep. 30, 2019 | $ 328,960 | $ 3,650 | $ 1,918 | $ 12,292 | $ 328,801 | $ (17,701) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Unrealized holding gains arising during period, taxes | $ 23 | $ 30 | $ 52 | $ 39 |
Realized net gains | 53 | 61 | 302 | |
Accretion of net unrealized losses transferred during the period, taxes | 54 | 85 | 205 | 314 |
Pension liability adjustment, taxes | $ 103 | $ 114 | $ 309 | $ 342 |
Class A Common Stock [Member] | ||||
Conversion of Class B Common Stock to Class A Common Stock, shares | 30,000 | 42,120 | 2,500 | |
Cash dividends, per share | $ 0.12 | $ 0.12 | $ 0.36 | $ 0.36 |
Class B Common Stock [Member] | ||||
Conversion of Class B Common Stock to Class A Common Stock, shares | 30,000 | 42,120 | 2,500 | |
Cash dividends, per share | $ 0.06 | $ 0.06 | $ 0.18 | $ 0.18 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 28,967 | $ 26,288 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Gain on sales of mortgage loans | (154) | |
Net gains on sales of securities | (61) | (302) |
Net (gain) loss on equity securities | (76) | 47 |
Provision for loan losses | 700 | 900 |
Deferred income taxes | (593) | (1,270) |
Net depreciation and amortization | (1,693) | 1,116 |
Decrease (increase) in accrued interest receivable | 1,131 | (1,699) |
(Increase) decrease in other assets | (1,037) | 1,542 |
Increase in other liabilities | 2,029 | 4,825 |
Net cash provided by operating activities | 29,213 | 31,447 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from redemptions of Federal Home Loan Bank of Boston stock | 13,801 | 13,619 |
Purchase of Federal Home Loan Bank of Boston stock | (9,852) | (14,583) |
Proceeds from calls/maturities of securities available-for-sale | 115,574 | 111,922 |
Proceeds from sales of securities available-for-sale | 16,285 | 27,517 |
Purchase of securities available-for-sale | (57,005) | (108,871) |
Proceeds from calls/maturities of securities held-to-maturity | 313,358 | 187,009 |
Purchase of securities held-to-maturity | (427,124) | (358,824) |
Proceeds from sales of securities held-to-maturity | 1,194 | |
Proceeds from life insurance policies | 5,124 | 375 |
Net increase in loans | (98,915) | (83,967) |
Proceeds from sales of portfolio loans | 8,871 | |
Capital expenditures | (9,962) | (2,900) |
Net cash used in investing activities | (128,651) | (228,703) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net decrease in time deposits | (27,505) | (45,475) |
Net decrease (increase) in demand, savings, money market and NOW deposits | (39,606) | 92,915 |
Cash dividends | (1,654) | (1,652) |
Net increase (decrease) in securities sold under agreements to repurchase | 152,995 | (18,500) |
Net increase in other borrowed funds | 6,810 | 24,828 |
Net cash provided by financing activities | 91,040 | 52,116 |
Net decrease in cash and cash equivalents | (8,398) | (145,140) |
Cash and cash equivalents at beginning of period | 342,503 | 356,430 |
Cash and cash equivalents at end of period | 334,105 | 211,290 |
Cash paid (received) during the period for: | ||
Interest | 48,127 | 30,680 |
Income tax refunds | (6,604) | |
Income taxes | 590 | |
Change in unrealized gains (losses) on securities available-for-sale, net of taxes | (156) | 195 |
Change in unrealized losses on securities transferred to held-to-maturity, net of taxes | 574 | 872 |
Pension liability adjustment, net of taxes | $ 790 | 877 |
Change in due to (from) to broker | $ 897 |
Basis of Financial Statement Pr
Basis of Financial Statement Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Statement Presentation | Note 1. Basis of Financial Statement Presentation The consolidated financial statements include the accounts of Century Bancorp, Inc. (the “Company”) and its wholly owned subsidiary, Century Bank and Trust Company (the “Bank”). The consolidated financial statements also include the accounts of the Bank’s wholly owned subsidiaries, Century Subsidiary Investments, Inc. (“CSII”), Century Subsidiary Investments, Inc. II (“CSII II”), Century Subsidiary Investments, Inc. III (“CSII III”) and Century Financial Services Inc. (“CFSI”). CSII, CSII II, and CSII III are engaged in buying, selling and holding investment securities. CFSI has the power to engage in financial agency, securities brokerage, and investment and financial advisory services and related securities credit. The Company also owns 100% of Century Bancorp Capital Trust II (“CBCT II”). The entity is an unconsolidated subsidiary of the Company. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company provides a full range of banking services to individual, business and municipal customers in Massachusetts, New Hampshire, Rhode Island, Connecticut, and New York. As a bank holding company, the Company is subject to the regulation and supervision of the Federal Reserve Board. The Bank, a state chartered financial institution, is subject to supervision and regulation by applicable state and federal banking agencies, including the Federal Reserve Board, the Federal Deposit Insurance Corporation (the “FDIC”) and the Commonwealth of Massachusetts Commissioner of Banks. The Bank is also subject to various requirements and restrictions under federal and state law, including requirements to maintain reserves against deposits, restrictions on the types and amounts of loans that may be granted and the interest that may be charged thereon, and limitations on the types of investments that may be made and the types of services that may be offered. Various consumer laws and regulations also affect the operations of the Bank. In addition to the impact of regulation, commercial banks are affected significantly by the actions of the Federal Reserve Board as it attempts to control the money supply and credit availability in order to influence the economy. All aspects of the Company’s business are highly competitive. The Company faces aggressive competition from other lending institutions and from numerous other providers of financial services. The Company has one reportable operating segment. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and general practices within the banking industry. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ from those estimates. The Company’s quarterly report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, as filed with the Securities and Exchange Commission. Material estimates that are susceptible to change in the near term relate to the allowance for loan losses. Management believes that the allowance for loan losses is adequate based on a qualitative risk factors for each category and general economic factors. While management uses available information to recognize loan losses, future additions to the allowance for loan losses may be necessary based on changes in economic conditions. In addition, regulatory agencies periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance for loan losses based on their judgments about information available to them at the time of their examination. Certain reclassifications are made to prior-year amounts whenever necessary to conform with the current-year presentation. |
Recent Accounting Developments
Recent Accounting Developments | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Developments | Note 2. Recent Accounting Developments Recently Adopted Accounting Standards Updates In July 2017, FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interest with a Scope Exception. For public entities, this ASU is effective for annual reporting periods beginning after December 15, 2018. The effect of this update did not have a material impact on the Company’s consolidated financial position. In March 2017, the FASB issued ASU 2017-08, Receivables — Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization of Purchased Callable Debt. The FASB is issuing this ASU to amend the amortization period for certain purchased callable debt securities held at a premium. The FASB is shortening the amortization period for the premium to the earliest call date. Under current generally accepted accounting principles (GAAP), entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. For public business entities, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The effect of this update did not have a material impact on the Company’s consolidated financial position. In February 2016, the FASB issued ASU 2016-02, Leases. This ASU required lessees to put most leases on their balance sheet but recognize expenses on their income statements in a manner similar to today’s accounting. This ASU also eliminated today’s real estate-specific provisions for all companies. For lessors, this ASU modified the classification criteria and the accounting for sales-type and direct financing leases. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods therein. The Company also reviewed contracts to determine if they contain embedded leases. The Company’s balance sheet impact was $15.1 million as of January 1, 2019. This amount was recorded as a right of use asset , included in other assets, with a corresponding lease liability , included in other liabilities . In July 2018, ASU 2018-10, “Codification Improvements to Topic 842, Leases” (“ASU 2018-10”) was issued to provide more detailed guidance and additional clarification for implementing ASU 2016-02. Also in July 2018, ASU 2018-11, “Targeted Improvements” (“ASU 2018-11”) was issued and allows for an optional transition method in which the provisions of Topic 842 would be applied upon the adoption date and would not have to be retroactively applied to the earliest reporting period presented in the consolidated financial statements.” The Company used this optional transition method for the adoption of Topic 842. Accounting Standards Issued but not yet Adopted The following list identifies ASUs applicable to the Company that have been issued by the FASB but are not yet effective: In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU was issued to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is in the process of implementing this ASU, has purchased a software solution and is capturing information needed to implement this ASU. As part of the FASB ASC 326 implementation process the company is using two models: a rating migration model and a probability of default model. The probability of default model is based primarily on four components: loss history, product lifecycle, behavioral attributes and the economic environment. The ratings migration model is designed to estimate loss reserves according to the CECL standard for rated loans or similar instruments. The model structure follows a grade migration approach, where the default rate is based on the probability of each grade transition which is modeled using historical data. The Company has started to input information into the models, and is running the software program and comparing to existing results. In addition, the Company has also begun developing accounting policies, as well as designing and implementing new internal controls relevant to the updated methodologies and models. The Company has not determined the dollar impact as of September 30, 2019. The securities held-to-maturity 2016-13 Since ASU 2016-13, the FASB has issued amendments intended on improving the clarification of the amendment, ASU 2018-19 Codification Improvements to Topic 326, Financial Instruments – Credit Losses and ASU 2019-04 Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging. The amendment in ASU 2018-19 was issued in November 2018 and was intended to clarify that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. The amendment in ASU 2019-04 was issued in April 2019 and was intended to clarify stakeholders’ specific issues about certain aspects of the amendments in ASU 2016-13. ASU 2019-05 Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief was also issued in May 2019. This ASU provides entities the option to irrevocably elect the fair value option for certain financial assets previously measured at amortized costs basis. The fair value option election does not apply to held-to-maturity debt securities. An entity that elects the fair value option should subsequently apply the guidance in Subtopics 820-10, Fair Value Measurement—Overall. The amendments in this ASU should be applied on a modified-retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings balance in the statement of financial position as of the date that an entity early adopted the amendments in ASU 2016-13. In August 2018, FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). This ASU is effective for annual reporting periods beginning after December 15, 2019. The effect of this update is not expected to have a material impact on the Company’s consolidated financial position. In August 2018, FASB issued ASU 2018-14, 715-20): In August 2018, FASB issued ASU 2018-13, In January 2017, the FASB issued ASU 2017-04, Intangibles — Goodwill and Other (Topic 350). This ASU was issued to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. For public entities, this ASU is effective for the fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted and application should be on a prospective basis. The effect of this update is not expected to have a material impact on the Company’s consolidated financial position. Securities and Exchange Commission (SEC) ruling: In August 2018, the SEC issued a final rule that amends certain of the Commission’s disclosure requirements “that have become redundant, duplicative, overlapping, outdated, or superseded, in light of other Commission disclosure requirements, U.S. GAAP, or changes in the information environment.” The financial reporting implications of the final rule’s amendments may vary by company, but the changes are generally expected to reduce or eliminate some of an SEC registrant’s disclosure requirements. In limited circumstances, however, the amendments may expand those requirements, including those related to interim disclosures about changes in stockholders’ equity. Under the requirements, registrants must now analyze changes in stockholders’ equity, in the form of a reconciliation, for “the current and comparative year-to-date periods, with subtotals for each interim period.” Beginning with its March 31, 2019 filing, the Company included a reconciliation for the current quarter and year-to-date interim periods as well as the comparative periods of the prior years (i.e., a reconciliation covering each period for which an income statement is presented). |
Securities Available-for-Sale
Securities Available-for-Sale | 9 Months Ended |
Sep. 30, 2019 | |
Text Block [Abstract] | |
Securities Available-for-Sale | Note 3. Securities Available-for-Sale September 30, 2019 December 31, 2018 Amortized Gross Gross Fair Amortized Gross Gross Fair (in thousands) U.S. Treasury $ — $ — $ — $ — $ 2,000 $ — $ 8 $ 1,992 U.S. Government Sponsored Enterprises — — — — 3,946 — 31 3,915 SBA Backed Securities 58,714 51 101 58,664 70,477 1 284 70,194 U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities 170,532 189 439 170,282 162,604 536 250 162,890 Privately Issued Residential Mortgage-Backed Securities 574 6 1 579 679 3 10 672 Obligations Issued by States and Political Subdivisions 28,519 57 — 28,576 93,445 58 — 93,503 Other Debt Securities 3,600 64 26 3,638 3,600 37 44 3,593 Total $ 261,939 $ 367 $ 567 $ 261,739 $ 336,751 $ 635 $ 627 $ 336,759 Included in SBA Backed Securities, U.S. Government Sponsored Enterprise Securities and U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities are securities at fair value pledged to secure public deposits and repurchase agreements amounting to $196,356,000 and $197,304,000 at September 30, 2019 Debt securities of U.S. Government Sponsored Enterprises and U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities primarily refer to debt securities of Fannie Mae and Freddie Mac. The following table shows the maturity distribution of the Company’s securities available-for-sale at September 30, 2019. Amortized Fair (in thousands) Within one year $ 26,187 $ 26,184 After one but within five years 134,881 134,811 After five but within ten years 85,551 85,378 More than 10 years 15,320 15,366 Total $ 261,939 $ 261,739 The weighted average remaining life of investment securities available-for-sale at September 30, 2019 was 5.1 years. The contractual maturities, which were used in the table above, of mortgage-backed securities, will differ from the actual maturities, due to the ability of the issuers to prepay underlying obligations. Also $234,949,000 of the securities are floating rate or adjustable rate and reprice prior to maturity. As of September 30, 2019 and December 31, 2018, management concluded that the unrealized losses of its investment securities are temporary in nature since they are not related to the underlying credit quality of the issuers, and the Company does not intend to sell these debt securities and it is not more likely than not that it will be required to sell these debt securities before the anticipated recovery of its remaining amortized cost. In making its other-than-temporary impairment evaluation, the Company considered that the principal and interest on these securities are from issuers that are investment grade. The unrealized loss on SBA Backed Securities, U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities related primarily to interest rates and not credit quality, and because the Company has the ability and intent to hold these investments until recovery of fair value, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at September 30, 2019 or December 31, 2018. In evaluating the underlying credit quality of a security, management considers several factors such as the credit rating of the obligor and the issuer, if applicable. Internal reviews of issuer financial statements are performed as deemed necessary. In the case of privately issued mortgage-backed securities, the performance of the underlying loans is analyzed as deemed necessary to determine the estimated future cash flows of the securities. Factors considered include the level of subordination, current and estimated future default rates, current and estimated prepayment rates, estimated loss severity rates, geographic concentrations and origination dates of underlying loans. The following table shows the temporarily impaired securities of the Company’s available-for-sale portfolio at September 30, 2019. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for less than 12 months and a continuous loss position for 12 months or longer. There are 24 and 18 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 134 holdings at September 30, 2019. September 30, 2019 Less than 12 months 12 months or longer Total Temporarily Impaired Investments Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) U.S. Treasury $ — $ — $ — $ — $ — $ — U.S. Government Sponsored Enterprises — — — — — — SBA Backed Securities 11,133 11 24,944 90 36,077 101 U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities 81,305 264 27,872 175 109,177 439 Privately Issued Residential Mortgage-Backed Securities — — 282 1 282 1 Obligations Issued by States and Political Subdivisions — — — — — — Other Debt Securities 800 1 475 25 1,275 26 Total temporarily impaired securities $ 93,238 $ 276 $ 53,573 $ 291 $ 146,811 $ 567 The following table shows the temporarily impaired securities of the Company’s available-for-sale portfolio at December 31, 2018. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for less than 12 months and a continuous loss position for 12 months or longer. There are 10 and 30 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 190 holdings at December 31, 2018. December 31, 2018 Less than 12 months 12 months or longer Total Temporarily Impaired Investments Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) U.S. Treasury $ — $ — $ 1,992 $ 8 $ 1,992 $ 8 U.S. Government Sponsored Enterprises 3,914 31 — — 3,914 31 SBA Backed Securities 17,950 28 44,323 256 62,273 284 U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities 19,244 21 45,782 229 65,026 250 Privately Issued Residential Mortgage-Backed Securities — — 495 10 495 10 Obligations Issued by States and Political Subdivisions — — — — — — Other Debt Securities — — 455 44 455 44 Total temporarily impaired securities $ 41,108 $ 80 $ 93,047 $ 547 $ 134,155 $ 627 |
Investment Securities Held-to-M
Investment Securities Held-to-Maturity | 9 Months Ended |
Sep. 30, 2019 | |
Text Block [Abstract] | |
Investment Securities Held-to-Maturity | Note 4. Investment Securities Held-to-Maturity September 30, 2019 December 31, 2018 Amortized Gross Gross Losses Estimated Amortized Gross Gross Estimated (in thousands) U.S. Treasury $ — $ — $ — $ — $ 9,960 $ — $ 2 $ 9,958 U.S. Government Sponsored Enterprises 121,516 653 67 122,102 234,228 336 803 233,761 SBA Backed Securities 47,126 452 66 47,512 52,051 — 2,065 49,986 U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities 1,995,493 29,911 6,553 2,018,851 1,750,408 2,324 55,016 1,697,716 Total $ 2,164,135 $ 31,016 $ 6,686 $ 2,188,465 $ 2,046,647 $ 2,660 $ 57,886 $ 1,991,421 Included in U.S. Government and Agency Securities are securities pledged to secure public deposits and repurchase agreements at fair value amounting to $1,692,033,000 and $1,441,059,000 at September 30, 2019 and December 31, 2018, respectively. Also included are securities pledged for borrowing at the Federal Home Loan Bank of Boston at fair value amounting to $427,425,000 and $291,190,000 at September 30, 2019 and December 31, 2018, respectively. The Company realized gross gains of $48,000 from the proceeds of $1,194,000 from the sales of held-to-maturity securities for the nine months ended September 30, 2019. The sales of securities held-to-maturity relate to certain mortgage backed securities for which the company has previously collected a substantial portion of its principal investment. There were no sales of held-to-maturity securities for the nine months ended September 30, 2018. At September 30, 2019 and December 31, 2018, all mortgage-backed securities are obligations of U.S. Government Agencies and Government Sponsored Enterprises. Debt securities of U.S. Government Sponsored Enterprises and U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities primarily refer to debt securities of Fannie Mae and Freddie Mac. The following table shows the maturity distribution of the Company’s securities held-to-maturity at September 30, 2019. Amortized Fair (in thousands) Within one year $ 70,980 $ 71,260 After one but within five years 1,809,564 1,829,087 After five but within ten years 271,068 275,192 More than ten years 12,523 12,926 Total $ 2,164,135 $ 2,188,465 The weighted average remaining life of investment securities held-to-maturity at September 30, 2019 was 3.6 years. Included in the weighted average remaining life calculation at September 30, 2019 were $66,196,000 of U.S. Government Sponsored Enterprises obligations that are callable at the discretion of the issuer. The contractual maturities, which were used in the table above, of mortgage-backed securities, will differ from the actual maturities, due to the ability of the issuers to prepay underlying obligations. Also $111,000 of the securities are floating rate or adjustable rate and reprice prior to maturity. As of September 30, 2019 and December 31, 2018, management concluded that the unrealized losses of its investment securities are temporary in nature since they are not related to the underlying credit quality of the issuers, and the Company does not intend to sell these debt securities and it is not more likely than not that it will be required to sell these debt securities before the anticipated recovery of their remaining amortized costs. In making its other-than-temporary impairment evaluation, the Company considered the fact that the principal and interest on these securities are from issuers that are investment grade. The unrealized loss on U.S. Government Sponsored Enterprises, SBA Backed Securities, and U.S. Government Sponsored Enterprises Mortgage-Backed Securities related primarily to interest rates and not credit quality, and because the Company does not intend to sell any of these securities and it is not more likely than not that it will be required to sell these securities before the anticipated recovery of the remaining amortized cost, the Company does not consider these investments to be other-than-temporarily impaired at September 30, 2019 or December 31, 2018. In evaluating the underlying credit quality of a security, management considers several factors such as the credit rating of the obligor and the issuer, if applicable. Internal reviews of issuer financial statements are performed as deemed necessary. The following table shows the temporarily impaired securities of the Company’s held-to-maturity portfolio September 30, 2019. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months or longer. There are 44 and 112 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 505 holdings at September 30, 2019. September 30, 2019 Less Than 12 Months 12 Months or Longer Total Temporarily Impaired Investments Fair Value Unrealized Fair Unrealized Fair Unrealized (in thousands) U.S. Treasury $ — $ — $ — $ — $ — $ — U.S. Government Sponsored Enterprises 9,976 22 9,954 45 19,930 67 SBA Backed Securities 13,673 66 — — 13,673 66 U.S. Government Agency and Sponsored Enterprise Mortgage- Backed Securities 163,889 816 430,714 5,737 594,603 6,553 Total temporarily impaired securities $ 187,538 $ 904 $ 440,668 $ 5,782 $ 628,206 $ 6,686 The following table shows the temporarily impaired securities of the Company’s held-to-maturity portfolio at December 31, 2018. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for less than 12 months and a continuous loss position for 12 months or longer. There are 56 and 315 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 475 holdings at December 31, 2018. December 31, 2018 Less Than 12 Months 12 Months or Longer Total Temporarily Impaired Investments Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) U.S. Treasury $ 9,958 $ 2 $ — $ — $ 9,958 $ 2 U.S. Government Sponsored Enterprises 9,849 42 69,499 761 79,348 803 SBA Backed Securities — — 49,987 2,065 49,987 2,065 U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities 188,125 2,032 1,249,689 52,984 1,437,814 55,016 Total temporarily impaired securities $ 207,932 $ 2,076 $ 1,369,175 $ 55,810 $ 1,577,107 $ 57,886 |
Allowance for Loan Losses
Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Note 5. 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. The following table summarizes the changes in the Company’s allowance for loan losses for the periods indicated. Three months ended Nine months ended 2019 2018 2019 2018 (in thousands) Allowance for loan losses, beginning of period $ 29,070 $ 27,144 $ 28,543 $ 26,255 Loans charged off (118 ) (89 ) (336 ) (247 ) Recoveries on loans previously charged-off 70 1,490 190 1,637 Net recoveries (charge-offs) (48 ) 1,401 (146 ) 1,390 Provision charged to expense 75 — 700 900 Allowance for loan losses, end of period $ 29,097 $ 28,545 $ 29,097 $ 28,545 Further information pertaining to the allowance for loan losses for the three months ending September 30, 2019 is as Construction Commercial Municipal Commercial Residential Consumer Home Unallocated Total (in thousands) Allowance for loan losses: Balance at June 30, 2019 $ 1,052 $ 11,338 $ 1,832 $ 10,848 $ 2,210 $ 380 $ 1,120 $ 290 $ 29,070 Charge-offs — (57 ) — — — (61 ) — — (118 ) Recoveries — 23 — — — 47 — — 70 Provision (752 ) 9 751 53 (24 ) (84 ) (33 ) 155 75 Ending balance at September 30, 2019 $ 300 $ 11,313 $ 2,583 $ 10,901 $ 2,186 $ 282 $ 1,087 $ 445 $ 29,097 Amount of allowance for loan losses loans deemed to be impaired $ — $ 2 $ — $ 86 $ — $ — $ — $ — $ 88 Amount of allowance for loan losses for loans not deemed to be impaired $ 300 $ 11,311 $ 2,583 $ 10,815 $ 2,186 $ 282 $ 1,087 $ 445 $ 29,009 Loans: Ending balance $ 7,824 $ 783,950 $ 121,802 $ 765,385 $ 364,317 $ 21,748 $ 310,635 $ — $ 2,375,661 Loans deemed to be impaired $ — $ 203 $ — $ 2,373 $ — $ — $ — $ — $ 2,576 Loans not deemed to be impaired $ 7,824 $ 783,747 $ 121,802 $ 763,012 $ 364,317 $ 21,748 $ 310,635 $ — $ 2,373,085 Further information pertaining to the allowance for loan losses for the nine months ending September 30, 2019 is as Construction Commercial Municipal Commercial Residential Consumer Home Unallocated Total (in thousands) Allowance for loan losses: Balance at December 31, 2018 $ 1,092 $ 10,998 $ 1,838 $ 10,663 $ 2,190 $ 365 $ 1,111 $ 286 $ 28,543 Charge-offs — (108 ) — — — (228 ) — — (336 ) Recoveries — 49 — — — 141 — — 190 Provision (792 ) 374 745 238 (4 ) 4 (24 ) 159 700 Ending balance at September 30, 2019 $ 300 $ 11,313 $ 2,583 $ 10,901 $ 2,186 $ 282 $ 1,087 $ 445 $ 29,097 Amount of allowance for loan losses for loans deemed to be impaired $ — $ 2 $ — $ 86 $ — $ — $ — $ — $ 88 Amount of allowance for loan losses for loans not deemed to be impaired $ 300 $ 11,311 $ 2,583 $ 10,815 $ 2,186 $ 282 $ 1,087 $ 445 $ 29,009 Loans: Ending balance $ 7,824 $ 783,950 $ 121,802 $ 765,385 $ 364,317 $ 21,748 $ 310,635 $ — $ 2,375,661 Loans deemed to be impaired $ — $ 203 $ — $ 2,373 $ — $ — $ — $ — $ 2,576 Loans not deemed to be impaired $ 7,824 $ 783,747 $ 121,802 $ 763,012 $ 364,317 $ 21,748 $ 310,635 $ — $ 2,373,085 During the nine months ending September 30, 2019, the Company’s provision was primarily attributable to an increase in municipal, Commercial and industrial, and commercial real estate balances offset, somewhat, by a decrease in construction and land development balances. During the three months ending September 30, 201 9 Overall there were improvements in historical loss rates. Further information pertaining to the allowance for loan losses for the three months ending September 30, 2018 follows: Construction Commercial Municipal Commercial Residential Consumer Home Unallocated Total (in thousands) Allowance for loan losses: Balance at June 30, 2018 $ 633 $ 10,384 $ 1,704 $ 10,209 $ 2,493 $ 336 $ 1,078 $ 307 $ 27,144 Charge-offs — (11 ) — — — (78 ) — — (89 ) Recoveries 1,432 16 — — — 42 — — 1,490 Provision (1,155 ) 895 84 415 (182 ) 32 (28 ) (61 ) — Ending balance at September 30, 2018 $ 910 $ 11,284 $ 1,788 $ 10,624 $ 2,311 $ 332 $ 1,050 $ 246 $ 28,545 Amount of allowance for loan losses $ — $ 93 $ — $ 95 $ 350 $ — $ — $ — $ 538 Amount of allowance for loan losses $ 910 $ 11,191 $ 1,788 $ 10,529 $ 1,961 $ 332 $ 1,050 $ 246 $ 28,007 Loans: Ending balance $ 12,434 $ 783,960 $ 94,532 $ 730,265 $ 335,114 $ 21,216 $ 283,818 $ — $ 2,261,339 Loans deemed to be impaired $ — $ 660 $ — $ 2,680 $ 2,675 $ — $ — $ — $ 6,015 Loans not deemed to be impaired $ 12,434 $ 783,300 $ 94,532 $ 727,585 $ 332,439 $ 21,216 $ 283,818 $ — $ 2,255,324 Further information pertaining to the allowance for loan losses for the nine months ending September 30, 2018 follows: Construction Commercial Municipal Commercial Residential Consumer Home Unallocated Total (in thousands) Allowance for loan losses: Balance at December 31, 2 017 $ 1,645 $ 9,651 $ 1,720 $ 9,728 $ 1,873 $ 373 $ 989 $ 276 $ 26,255 Charge-offs — (16 ) — — — (231 ) — — (247 ) Recoveries 1,432 49 — — — 156 — — 1,637 Provision (2,167 ) 1,600 68 896 438 34 61 (30 ) 900 Ending balance at September 30, 2018 $ 910 $ 11,284 $ 1,788 $ 10,624 $ 2,311 $ 332 $ 1,050 $ 246 $ 28,545 Amount of allowance for loan losses for loans deemed to be impaired $ — $ 93 $ — $ 95 $ 350 $ — $ — $ — $ 538 Amount of allowance for loan losses for loans not deemed to be impaired $ 910 $ 11,191 $ 1,788 $ 10,529 $ 1,961 $ 332 $ 1,050 $ 246 $ 28,007 Loans: Ending balance $ 12,434 $ 783,960 $ 94,532 $ 730,265 $ 335,114 $ 21,216 $ 283,818 $ — $ 2,261,339 Loans deemed to be impaired $ — $ 660 $ — $ 2,680 $ 2,675 $ — $ — $ — $ 6,015 Loans not deemed to be impaired $ 12,434 $ 783,300 $ 94,532 $ 727,585 $ 332,439 $ 21,216 $ 283,818 $ — $ 2,255,324 During the nine months ending September 30, 2018, the Company’s provision was primarily attributable to an increase in residential real estate balances and increased qualitative allocations for commercial and industrial and commercial real estate loans, offset, somewhat by the recovery of a construction loan previously charged-off and a decrease in construction balances. During the three months ending September 30, 2018, the Company did not require a provision mainly as a result of recoveries of a construction loan previously charged-off and a decrease in construction loan balances offset by increased qualitative allocations for commercial and industrial and commercial real estate loans. The Company monitors the outlook for the industries in which our borrowers operate. Healthcare and higher education are two of the primary industries. In particular the Company utilizes outlooks and forecasts from various sources. Overall a general weakening in the outlook was noted resulting in a general increase in the general economic factors. The Company also monitors the volatility of the losses within the historical data. The Company utilizes a six grade internal loan rating system for commercial real estate, construction and commercial loans as follows: Loans rated 1-3 (Pass): Loans in this category are considered “pass” rated loans with low to average risk. Loans rated 4 (Monitor): These loans represent classified loans that management is closely monitoring for credit quality. These loans have had or may have minor credit quality deterioration as of September 30, 2019 and December 31, 2018. Loans rated 5 (Substandard): Substandard loans represent classified loans that management is closely monitoring for credit quality. These loans have had more significant credit quality deterioration as of September 30, 2019 and December 31, 2018. Loans rated 6 (Doubtful): Doubtful loans represent classified loans that management is closely monitoring for credit quality. These loans had more significant credit quality deterioration as of September 30, 2019 and December 31, 2018 and full collectability is Impaired: Impaired loans represent classified loans that management is closely monitoring for credit quality. A loan is classified as impaired when it is probable that the Company will be unable to collect all amounts due. The following table presents the Company’s loans by risk rating at September 30, 2019. Construction Commercial Municipal Commercial (in thousands) Grade: 1-3 (Pass) $ 7,824 $ 779,722 $ 121,802 $ 738,459 4 (Monitor) — 4,025 — 24,553 5 (Substandard) — — — — 6 (Doubtful) — — — — Impaired — 203 — 2,373 Total $ 7,824 $ 783,950 $ 121,802 $ 765,385 The following table presents the Company’s loans by risk rating at December 31, 2018. Construction Commercial Municipal Commercial (in thousands) Grade: 1-3 (Pass) $ 13,628 $ 757,089 $ 97,290 $ 723,170 4 (Monitor) — 4,135 — 24,542 5 (Substandard) — — — — 6 (Doubtful) — — — — Impaired — 401 — 2,650 Total $ 13,628 $ 761,625 $ 97,290 $ 750,362 Credit ratings issued by national organizations were utilized as credit quality indicators as presented in the following table at September 30, 2019 and are included within the total loan portfolio. Commercial Municipal Commercial Total (in thousands) Credit Rating: Aaa – Aa3 $ 497,124 $ 54,495 $ 40,759 $ 592,378 A1 – A3 187,970 7,479 148,735 344,184 Baa1 – Baa3 — 51,133 122,288 173,421 Ba2 — 5,895 — 5,895 Total $ 685,094 $ 119,002 $ 311,782 $ 1,115,878 Credit ratings issued by national organizations were utilized as credit quality indicators as presented in the following table at December 31, 2018. Commercial Municipal Commercial Total (in thousands) Credit Rating: Aaa – Aa3 $ 491,247 $ 54,105 $ 42,790 $ 588,142 A1 – A3 172,472 7,605 151,381 331,458 Baa1 – Baa3 — 26,970 118,197 145,167 Ba2 — 6,810 — 6,810 Total $ 663,719 $ 95,490 $ 312,368 $ 1,071,577 The Company utilized payment performance as credit quality indicators for the loan types listed below. The indicators are depicted in the table “aging of past due loans,” below. Further information pertaining to the allowance for loan losses at September 30, 2019 follows: Accruing 30-89 Days Non Accruing Total Current Total (in thousands) Construction and land development $ — $ — $ — $ — $ 7,824 $ 7,824 Commercial and industrial 108 19 — 127 783,823 783,950 Municipal — — — — 121,802 121,802 Commercial real estate 155 167 — 322 765,063 765,385 Residential real estate 1,129 334 — 1,463 362,854 364,317 Consumer and overdrafts 15 — — 15 21,733 21,748 Home equity 1,050 546 — 1,596 309,039 310,635 Total $ 2,457 $ 1,066 $ — $ 3,523 $ 2,372,138 $ 2,375,661 Further information pertaining to the allowance for loan losses at December 31, 2018 follows: Accruing 30-89 Days Non Accruing Total Current Total (in thousands) Construction and land development $ — $ — $ — $ — $ 13,628 $ 13,628 Commercial and industrial 187 115 — 302 761,323 761,625 Municipal — — — — 97,290 97,290 Commercial real estate 774 190 — 964 749,398 750,362 Residential real estate 2,554 569 — 3,123 345,127 348,250 Consumer and overdrafts 24 14 — 38 22,045 22,083 Home equity 1,108 425 — 1,533 290,807 292,340 Total $ 4,647 $ 1,313 $ — $ 5,960 $ 2,279,618 $ 2,285,578 Impaired loans A loan is impaired when, based on current information and events, it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. When a loan is impaired, the Company measures impairment based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except that as a practical expedient, the Company measures impairment based on a loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. Loans are charged-off when management believes that the collectability of the loan’s principal is not probable. The specific factors that management considers in making the determination that the collectability of the loan’s principal is not probable include: the delinquency status of the loan, the fair value of the collateral, if secured, and the financial strength of the borrower and/or guarantors. For collateral dependent loans, the amount of the recorded investment in a loan that exceeds the fair value of the collateral is charged-off against the allowance for loan losses in lieu of an allocation of a specific allowance amount when such an amount has been identified definitively as uncollectible. The Company’s policy for recognizing interest income on impaired loans is contained within Note 1 of the consolidated financial statements contained in the Company’s Annual Report for the fiscal year ended December 31, 2018. The following is information pertaining to impaired loans for September 30, 2019: Carrying Unpaid Required Average Interest Average Interest (in thousands) With no required reserve recorded: Construction and land development $ — $ — $ — $ — $ — $ — $ — Commercial and industrial 87 306 — 89 2 87 6 Municipal — — — — — — — Commercial real estate 167 194 — 729 — 529 — Residential real estate — — — — — — — Consumer — — — — — — — Home equity — — — — — — — Total $ 254 $ 500 $ — $ 818 $ 2 $ 616 $ 6 With required reserve recorded: Construction and land development $ — $ — $ — $ — $ — $ — $ — Commercial and industrial 116 116 2 310 2 299 6 Municipal — — — — — — — Commercial real estate 2,206 2,326 86 2,140 23 2,350 67 Residential real estate — — — — — — — Consumer — — — — — — — Home equity — — — — — — — Total $ 2,322 $ 2,442 $ 88 $ 2,450 $ 25 $ 2,649 $ 73 Total: Construction and land development $ — $ — $ — $ — $ — $ — $ — Commercial and industrial 203 422 2 399 4 386 12 Municipal — — — — — — — Commercial real estate 2,373 2,520 86 2,869 23 2,879 67 Residential real estate — — — — — — — Consumer — — — — — — — Home equity — — — — — — — Total $ 2,576 $ 2,942 $ 88 $ 3,268 $ 27 $ 3,265 $ 79 The following is information pertaining to impaired loans for September 30, 2018: Carrying Unpaid Required Average 9 Interest 9 Average 9 9 Interest 9 9 (in thousands) With no required reserve recorded: Construction and land development $ — $ — $ — $ — $ — $ — $ — Commercial and industrial 84 282 — 56 — 47 — Municipal — — — — — — — Commercial real estate 196 219 — 280 — 267 — Residential real estate — — — — — — — Consumer — — — — — — — Home equity — — — — — — — Total $ 280 $ 501 $ — $ 336 $ — $ 314 $ — With required reserve recorded: Construction and land development $ — $ — $ — $ — $ — $ — $ — Commercial and industrial 576 593 93 589 5 490 14 Municipal — — — — — — — Commercial real estate 2,484 2,597 95 2,262 24 2,278 71 Residential real estate 2,675 2,675 350 2,675 — 3,136 80 Consumer — — — — — — — Home equity — — — — — — — Total $ 5,735 $ 5,865 $ 538 $ 5,526 $ 29 $ 5,904 $ 165 Total: Construction and land development $ — $ — $ — $ — $ — $ — $ — Commercial and industrial 660 875 93 645 5 537 14 Municipal — — — — — — — Commercial real estate 2,680 2,816 95 2,542 24 2,545 71 Residential real estate 2,675 2,675 350 2,675 — 3,136 80 Consumer — — — — — — — Home equity — — — — — — — Total $ 6,015 $ 6,366 $ 538 $ 5,862 $ 29 $ 6,218 $ 165 Troubled debt restructurings are identified as modification s There was no troubled debt restructuring that occurred during the nine month period ended September 30, 2019. Also, there were no commitments to lend additional funds to troubled debt restructuring borrowers. There were no troubled debt restructurings that subsequently defaulted during the first nine months of 2019. There was one residential real estate loan and one consumer loan that were modified during the first quarter of 2018. The loans were modified by reducing the interest rates as well as extending the terms on both loans. The pre-modification and post-modification outstanding recorded investment was $ 2,675 1 2,675,000 This troubled debt restructuring became other real estate owned during the fourth quarter of 2018 and subsequently sold during the third quarter of 2019. |
Reclassifications Out of Accumu
Reclassifications Out of Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2019 | |
Text Block [Abstract] | |
Reclassifications Out of Accumulated Other Comprehensive Income | Note 6. Reclassifications Out of Accumulated Other Comprehensive Income Amount Reclassified from Accumulated Other Comprehensive Income Details about Accumulated Other Comprehensive Income Components Three Three Affected Line Item in the Statement where Net Income is Presented (in thousands) Unrealized gains and losses on available-for-sale securities $ 54 $ 105 Net gains on sales of Tax (expense) or benefit (15 ) (29 ) Provision for income taxes Net of tax $ 39 $ 76 Net income Accretion of unrealized losses transferred $ (209 ) $ (323 ) Interest on securities Tax (expense) or benefit 54 85 Provision for income taxes Net of tax $ (155 ) $ (238 ) Net income Amortization of defined benefit pension items Prior-service costs $ (29 ) $ (4 )(b) Salaries and employee benefits Actuarial gains (losses) (337 ) (402 )(b) Salaries and employee benefits Total before tax (366 ) (406 ) Income before taxes Tax (expense) or benefit 103 114 Provision for income taxes Net of tax $ (263 ) $ (292 ) Net income Details about Accumulated Other Comprehensive Income Components Nine Nine Affected Line Item in the Statement where Net Income is Presented (in thousands) Unrealized gains and losses on available-for-sale securities $ 61 $ 302 Net gains on sales of Tax (expense) or benefit (17 ) (85 ) Provision for income taxes Net of tax $ 44 $ 217 Net income Accretion of unrealized losses transferred $ (779 ) $ (1,186 ) Interest on securities Tax (expense) or benefit 205 314 Provision for income taxes Net of tax $ (574 ) $ (872 ) Net income Amortization of defined benefit pension items Prior-service costs $ (86 ) $ (12 ) ( b Salaries and employee benefits Actuarial gains (losses) (1,013 ) (1,207 ) ( b Salaries and employee benefits Total before tax (1,099 ) (1,219 ) Income before taxes Tax (expense) or benefit 309 342 Provision for income taxes Net of tax $ (790 ) $ (877 ) Net income (a) Amount in parentheses indicates reductions to net income. (b) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Employee Benefits footnote (Note 8) for additional details). |
Earnings per share ("EPS")
Earnings per share ("EPS") | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per share ("EPS") | Note 7. Earnings per Share (“EPS”) Class A and Class B shares participate equally in undistributed earnings. Under the Company’s Articles of Organization, the holders of Class A Common Stock are entitled to receive dividends per share equal to at least 200% of dividends paid, if any, from time to time, on each share of Class B Common Stock. Diluted EPS includes the dilutive effect of common stock equivalents; basic EPS excludes all common stock equivalents. The Company had no common stock equivalents outstanding for the periods ended September 30, 2019 and 2018. The following table is a reconciliation of basic EPS and diluted EPS. Three Months Ended Nine Months Ended (in thousands except share and per share data) 2019 2018 2019 2018 Basic EPS Computation: Numerator: Net income, Class A $ 7,986 $ 7,535 $ 22,849 $ 20,674 Net income, Class B 2,098 2,046 6,118 5,614 Denominator: Weighted average shares outstanding, Class A 3,650,449 3,608,329 3,627,076 3,608,129 Weighted average shares outstanding, Class B 1,917,460 1,959,580 1,940,833 1,959,780 Basic EPS, Class A $ 2.19 $ 2.09 $ 6.30 $ 5.73 Basic EPS, Class B 1.09 1.04 3.15 2.86 Diluted EPS Computation: Numerator: Net income, Class A $ 7,986 $ 7,535 $ 22,849 $ 20,674 Net income, Class B 2,098 2,046 6,118 5,614 Total net income, for diluted EPS, Class A computation 10,084 9,581 28,967 26,288 Denominator: Weighted average shares outstanding, basic, Class A 3,650,449 3,608,329 3,627,076 3,608,129 Weighted average shares outstanding, Class B 1,917,460 1,959,580 1,940,833 1,959,780 Weighted average shares outstanding diluted, Class A 5,567,909 5,567,909 5,567,909 5,567,909 Weighted average shares outstanding, Class B 1,917,460 1,959,580 1,940,833 1,959,780 Diluted EPS, Class A $ 1.81 $ 1.72 $ 5.20 $ 4.72 Diluted EPS, Class B 1.09 1.04 3.15 2.86 |
Employee Benefits
Employee Benefits | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Note 8. Employee Benefits The Company provides pension benefits to its employees under a noncontributory, defined benefit plan which is funded on a current basis in compliance with the requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”) and recognizes costs over the estimated employee service period. The Company also has a Supplemental Executive Insurance/Retirement Plan (the “Supplemental Plan”) which is limited to certain officers and employees of the Company. The Supplemental Plan is accrued on a current basis and recognizes costs over the estimated employee service period. Executive officers of the Company and its subsidiaries who have at least one year of service may participate in the Supplemental Plan. The Supplemental Plan is voluntary, and participants are required to contribute to its cost. Life insurance policies, which are owned by the Company, are purchased covering the lives of each participant. Components of Net Periodic Benefit Cost for the Three Months Ended September 30, Pension Benefits Supplemental Insurance/ 2019 2018 2019 2018 (in thousands) Service cost $ 276 $ 353 $ 256 $ 277 Interest 473 371 482 346 Expected return on plan assets (819 ) (954 ) — — Recognized prior service cost (benefit) — (25 ) 28 29 Recognized net actuarial losses 229 226 109 176 Net periodic benefit cost (credit) $ 159 $ (29 ) $ 875 $ 828 Components of Net Periodic Benefit Cost for the Nine Months Ended September 30, Pension Benefits Supplemental Insurance/ 2019 2018 2019 2018 (in thousands) Service cost $ 828 $ 1,059 $ 768 $ 831 Interest 1,419 1,111 1,445 1,040 Expected return on plan assets (2,457 ) (2,863 ) — — Recognized prior service cost (benefit) — (75 ) 86 87 Recognized net actuarial losses 687 680 326 527 Net periodic benefit cost (credit) $ 477 $ (88 ) $ 2,625 $ 2,485 Approximately $1,506,000 and $507,000 of costs other than service costs, from the table above, are included in other expenses for the nine months ended September 30, 2019 and 2018, respectively. Contributions The Company does not intend to contribute to the Defined Benefit Pension Plan in 2019. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 9. Fair Value Measurements The Company follows FASB ASC 820-10, Fair Value Measurements and Disclosures and ASU 2016-1, “Financial Instruments-Overall” (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities Level I – 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 I are highly liquid cash instruments with quoted prices such as G-7 government, agency securities, listed equities and money market securities, as well as listed derivative instruments. Level II – 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 include cash instruments for which quoted prices are available but traded less frequently, derivative instruments whose fair value have 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 OTC derivatives. Level III – 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 or estimation. Instruments that are included in this category generally include certain commercial mortgage loans, certain private equity investments, and distressed debt and non-investment grade residual interests in securitizations, as well as certain highly structured OTC derivative contracts. The results of the fair value hierarchy as of September 30, 2019, are as follows: Financial Instruments Measured at Fair Value on a Recurring Basis: Securities AFS Fair Value Measurements Using Carrying Quoted Prices Significant Significant (in thousands) SBA Backed Securities $ 58,664 $ — $ 58,664 $ — U.S. Government Agency and Sponsored Mortgage-Backed Securities 170,282 — 170,282 — Privately Issued Residential Mortgage- 579 — 579 — Obligations Issued by States and Political Subdivisions 28,576 — 4,775 23,801 Other Debt Securities 3,638 — 3,638 — Total $ 261,739 $ — $ 237,938 $ 23,801 Equity Securities $ 1,672 $ 324 $ 1,348 $ — Financial Instruments Measured at Fair Value on a Non-recurring Basis: Impaired Loans $ 173 $ — $ — $ 173 Impaired loan balances represent those collateral dependent loans where management has estimated the credit loss by comparing the loan’s carrying value against the expected realizable fair value of the collateral. Fair value is generally determined through a review process that includes independent appraisals, discounted cash flows, or other external assessments of the underlying collateral, which generally include various Level 3 inputs which are not observable. The Company discounts the fair values, as appropriate, based on management’s observations of the local real estate market for loans in this category. Appraisals, discounted cash flows and real estate tax assessments are reviewed quarterly. There is no specific policy regarding how frequently appraisals will be updated. Adjustments are made to appraisals and real estate tax assessments based on management’s estimate of changes in real estate values. All impaired loans have been reviewed during the past quarter using either a discounted cash flow analysis, appraisal of collateral or other type of real estate tax assessment. The types of adjustments that are made to specific provisions relate d The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands). Management continues to monitor the assumptions used to value the assets listed below. Asset Fair Value Valuation Technique Unobservable Input Unobservable Input Securities AFS (4) $ 23,801 Discounted cash flow Discount rate 1.7%-3.1% (3) Impaired Loans $ 173 Appraisal of collateral (1) Appraisal adjustments (2) 0%-30% discount (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses. (3) Weighted averages. (4) Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value. The changes in Level 3 securities for the nine month period ended September 30, 2019 are shown in the table below: Obligations (in thousands) Balance at December 31, 2018 $ 88,728 Purchases 13,290 Maturities and calls (78,196 ) Amortization (21 ) Balance at September 30, 2019 $ 23,801 The amortized cost of Level 3 securities was $23,801,000 at September 30, 2019 with an unrealized loss of $0. The securities in this category are generally municipal securities with no readily determinable fair value. Management evaluated the fair value of these securities based on an evaluation of the underlying issuer, prevailing rates and market liquidity. The fair value of impaired loans decreased by $78,000, for the first nine months of 2019, mainly attributable to one loan that was removed from impaired loans. There were no liabilities measured at fair value on a recurring or nonrecurring basis during the nine month period ended September 30, 2019. The changes in Level 3 securities for the nine month period ended September 30, 2018, are shown in the table below: Auction Rate Obligations Total (in thousands) Balance at December 31, 2017 $ 4,459 $ 78,141 $ 82,600 Purchases — 105,837 105,837 Maturities and calls — (72,640 ) (72,640 ) Transfer to Level 2 (4,459 ) — (4,459 ) Amortization — (104 ) (104 ) Changes in fair value — — — Balance at September 30, 2018 $ — $ 111,234 $ 111,234 The amortized cost of Level 3 securities was $111,234,000 at September 30, 2018 with an unrealized loss of $0. The securities in this category are generally municipal securities with no readily determinable fair. Management evaluated the fair value of these securities based on an evaluation of the underlying issuer, prevailing rates and market liquidity. There was one transfer of a security from level 3 to level 2 for the nine months ended September 30, 2018 as a result of increased trading activity and quoted market prices. There were no liabilities measured at fair value on a recurring or nonrecurring basis during the nine month period ended September 30, 2018. The results of the fair value hierarchy as of December 31, 2018, are as follows: Financial Instruments Measured at Fair Value on a Recurring Basis: Securities AFS Fair Value Measurements Using Carrying Quoted Prices Significant Significant (in thousands) U.S. Treasury $ 1,992 $ — $ 1,992 $ — U.S. Government Sponsored Enterprises 3,915 — 3,915 — SBA Backed Securities 70,194 — 70,194 — U.S. Government Agency and Sponsored Mortgage-Backed Securities 162,890 — 162,890 — Privately Issued Residential Mortgage- 672 — 672 — Obligations Issued by States and Political Subdivisions 93,503 — 4,775 88,728 Other Debt Securities 3,593 3,593 Total $ 336,759 $ — $ 248,031 $ 88,728 Equity Securities $ 1,596 $ 293 $ 1,303 $ — Financial Instruments Measured at Fair Value on a Non-recurring Basis: Other Real Estate Owned $ 2,225 $ — $ — $ 2,225 Impaired Loans $ 251 $ — $ — $ 251 Impaired loan balances represent those collateral dependent loans where management has estimated the credit loss by comparing the loan’s carrying value against the expected realizable fair value of the collateral. Fair value is generally determined through a review process that includes independent appraisals, discounted cash flows, or other external assessments of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. The Company discounts the fair values, as appropriate, based on management’s observations of the local real estate market for loans in this category. Appraisals, discounted cash flows and real estate tax assessments are reviewed quarterly. There is no specific policy regarding how frequently appraisals will be updated. Adjustments are made to appraisals and real estate tax assessments based on management’s estimate of changes in real estate values. Within the past twelve months there have been no updated appraisals, however, all impaired loans have been reviewed during the past quarter using either a discounted cash flow analysis, appraisal of collateral or other type of real estate tax assessment. The types of adjustments that are made to specific provisions relate to impaired loans recognized for 2018 for the estimated credit loss amounted to $540,000. There was a transfer of an auction rate security during 2018 from level 3 to level 2. Quoted prices on the auction rate security became available but traded infrequently. There were no other transfers between level 1, 2 and 3 for the year ended December 31, 2018. There were no liabilities measured at fair value on a recurring or nonrecurring basis during the year ended December 31, 2018. The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands). Management continues to monitor the assumptions used to value the assets listed below. Asset Fair Value Valuation Technique Unobservable Input Unobservable Input Securities AFS (4) $ 88,728 Discounted cash flow Discount rate 2.1%-4.1% (3) Other Real Estate Owned $ 2,225 Appraisal of collateral (1) Appraisal adjustments (2) 30% discount Impaired Loans $ 251 Appraisal of collateral (1) Appraisal adjustments (2) 0%-30% discount (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses. (3) Weighted averages. (4) Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value. |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Investments, All Other Investments [Abstract] | |
Fair Values of Financial Instruments | Note 10. Fair Values of Financial Instruments The following methods and assumptions were used by the Company in estimating fair values of its financial instruments. Excluded from this disclosure are all non-financial instruments. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The assumptions used below are expected to approximate those that market participants would use in valuing these financial instruments. Fair value estimates are made at a specific point in time, based on available market information and judgments about the financial instrument, including estimates of timing, amount of expected future cash flows and the credit standing of the issuer. Such estimates do not consider the tax impact of the realization of unrealized gains or losses. In some cases, the fair value estimates cannot be substantiated by comparison to independent markets. In addition, the disclosed fair value may not be realized in the immediate settlement of the financial instrument. Care should be exercised in deriving conclusions about our business, its value or financial position based on the fair value information of financial instruments presented below. Securities Held-to-Maturity The fair values of these securities were based on quoted market prices, where available, as provided by third-party investment portfolio pricing vendors. If quoted market prices were not available, fair values provided by the vendors were based on quoted market prices of comparable instruments in active markets and/or based on a matrix pricing methodology which employs The Bond Market Association’s standard calculations for cash flow and price/yield analysis, live benchmark bond pricing and terms/condition data available from major pricing sources. Management regards the inputs and methods used by third party pricing vendors to be “Level 2 inputs and methods” as defined in the “fair value hierarchy” provided by FASB. Loans The fair value of loans is estimated using the exit price notion consistent with Topic 820, Fair Value Measurement. Fair value is determined based on a discounted cash flow analysis. The discounted cash flow analysis was based on the contractual maturity of the loan and market indications of rates, prepayment speeds, defaults and credit risk. For certain non-performing assets , Time Deposits The fair value of time deposits was estimated using a discounted cash flow approach that applies prevailing market interest rates for similar maturity instruments. The fair values of the Company’s time deposit liabilities do not take into consideration the value of the Company’s long-term relationships with depositors, which may have significant value. Other Borrowed Funds The fair value of other borrowed funds is based on the discounted value of contractual cash flows. The discount rate used is estimated based on the rates currently offered for other borrowed funds of similar remaining maturities. Subordinated Debentures The fair value of subordinated debentures is based on the discounted value of contractual cash flows. The discount rate used is estimated based on the rates currently offered for other subordinated debentures of similar remaining maturities. The following presents (in thousands) the carrying amount, estimated fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2019 and December 31, 2018. This table excludes financial instruments for which the carrying amount approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, short-term investments, FHLBB stock and accrued interest receivable. Financial liabilities for which the fair value approximates carrying value include non-maturity deposits, short-term borrowings and accrued interest payable. September 30, 2019 Carrying Estimated Fair Value Level 2 Level 3 (in thousands) Financial assets: Securities held-to-maturity $ 2,164,135 $ 2,188,465 $ — $ 2,188,465 $ — Loans (1) 2,346,564 2,398,515 — — 2,398,515 Financial liabilities: Time deposits 533,074 532,135 — 532,135 — Other borrowed funds 209,188 209,263 — 209,263 — Subordinated debentures 36,083 36,083 — 36,083 — December 31, 2018 Financial assets: Securities held-to-maturity $ 2,046,647 $ 1,991,421 $ — $ 1,991,421 $ — Loans (1) 2,257,035 2,279,712 — — 2,279,712 Financial liabilities: Time deposits 560,579 559,988 — 559,988 — Other borrowed funds 202,378 203,122 — 203,122 — Subordinated debentures 36,083 36,083 — 36,083 — (1) Comprised of loans (including collateral dependent impaired loans), net of deferred loan costs and the allowance for loan losses. Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the type of financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Bank’s entire holdings of a particular financial instrument. Because no active market exists for some of the Bank’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, cash flows, current economic conditions, risk characteristics and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions and changes in the loan, debt and interest rate markets could significantly affect the estimates. Further, the income tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on the fair value estimates and have not been considered. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Note 11. Revenue from Contracts with Customers Revenue from contracts with customers in the scope of ASC Topic 606 is measured based on the consideration specified in the contract with a customer, and excludes amounts collected on behalf of third parties. The Company recognizes revenue from contracts with customers when it satisfies its performance obligations. The Company’s performance obligations are typically satisfied as services are rendered, and our contracts do not include multiple performance obligations. Payment is generally collected at the time services are rendered, or monthly. Unsatisfied performance obligations at the report date are not material to our consolidated financial statements. The Company pays sales commissions to its employees in accordance with certain incentive plans. The Company expenses sales commissions when incurred if we do not expect to recover these costs from the terms of the contract with the customer. Sales commissions are included in compensation expense. In certain cases, other parties are involved with providing products and services to our customers. If the Company is a principal in the transaction (providing goods or services itself), revenues are reported based on the gross consideration received from the customer and any related expenses are reported gross in noninterest expense. If the Company is an agent in the transaction (arranging for another party to provide goods or services), the Company reports its net fee or commission retained as revenue. Waivers and reversals are recorded as a reduction of revenue either when the revenue is recognized by the Company or at the time the waiver or reversal is earned by the customer. A. Change in accounting policy The Company adopted Topic 606 Revenue from Contracts with Customers third The Company applied Topic 606 using the cumulative effect method. There was no cumulative effect adjustment as of January 1, 2018, and there were no material changes to the financial statements at or for the nine months ended September 30, 2019 and September 30, 2018, respectively, as a result of adopting Topic 606. B. Practical Expedients The Company applies the practical expedient in paragraph 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less. The Company applies the practical expedient in paragraph 606-10-32-18 and does not adjust the consideration from customers for the effects of a significant financing component if at contract inception the period between when the entity transfers the goods or services and when the customer pays for that good or service will be one year or less. C. Nature of goods and services The vast majority of the Company’s revenue is specifically out-of-scope of Topic 606. For the revenue in-scope, the following is a description of principal activities, separated by the timing of revenue recognition, from which the Company generates its revenue from contracts with customers. a. Revenue earned at a point in time – Examples of revenue earned at a point in time are ATM transaction fees, wire transfer fees, NSF fees, credit and debit card interchange fees and foreign exchange transaction fees. Revenue is generally derived from transactional information accumulated by our systems and is recognized as revenue immediately as the transactions occur or upon providing the service to complete the customer’s transaction. The Company is the principal in each of these contracts, with the exception of credit and debit card interchange fees, in which case we are acting as the agent and record revenue net of expenses paid to the principal. b. Revenue earned over time – The Company earns revenue from contracts with customers in a variety of ways in which the revenue is earned over a period of time – generally monthly or quarterly. Examples of this type of revenue are deposit account service fees, lockbox fees, investment management fees, merchant referral services, and safe deposit box fees. Account service charges, management fees and referral fees are recognized on a monthly basis while any transaction based income is recorded as the activity occurs. Revenue is primarily based on the number and type of transactions or assets managed and is generally derived from transactional information accumulated by our systems. Revenue is recorded in the same period as the related transactions occur or services are rendered to the customer. D. Disaggregation of revenue The following table presents total revenues as presented in the Consolidated Statements of Income and the related amounts which are from contracts with customers within the scope of Topic 606. As illustrated here, the vast majority of our revenues are specifically excluded from the scope of Topic 606. Nine Revenue from Nine Revenue from (dollars in thousands) Net $ 70,458 $ — $ 68,871 $ — Noninterest income: Service charges on deposit accounts 6,801 6,801 6,268 6,268 Lockbox fees 3,018 3,018 2,304 2,304 Net gains on sales of securities 61 — 302 — Gains on sales of mortgage loans 154 — — — Other income 3,676 2,338 3,210 2,215 Total noninterest income 13,710 12,157 12,084 10,787 Total reven ues $ 84,168 $ 12,157 $ 80,955 $ 10,787 Three Revenue from Three Revenue from (dollars in thousands) Net $ 23,770 $ — $ 23,204 $ — Noninterest income: Service charges on deposit accounts 2,310 2,310 2,137 2,137 Lockbox fees 937 937 892 892 Net gains on sales of securities 53 — 105 — Gains on sales of mortgage loans — — — — Other income 986 728 1,035 751 Total noninterest income 4,286 3,975 4,169 3,780 Total revenues $ 28,056 $ 3,975 $ 27,373 $ 3,780 The following table provides information about receivables with customers. September 30, 2019 December 31, 2018 (dollars in thousands) Receivables, which are included in “Other assets” $ 1,142 $ 1,205 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 12. Leases The Company has operating leases primarily for branch locations as well as data processing centers. The Company’s operating leases have remaining lease terms of 1 year to 32 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within 1 year. The sublease expires in 2022 with an option to terminate and no option to extend. Variable lease costs include costs that are not included in the lease liability. The components of lease expense were as follows: Three Months Nine Months (in thousands) Operating lease cost $ 550 $ 1,676 Variable lease cost 121 405 Total lease cost $ 671 $ 2,081 Supplemental cash flow information related to leases was as follows: Three Months Nine Months (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 528 $ 1,605 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 433 $ 1,318 Supplemental balance sheet information related to leases was as follows: 9/30/2019 (in thousands, except lease term and discount rate) Operating Leases: Operating lease right-of-use assets $ 12,944 Operating lease liabilities $ 13,101 Weighted Average Remaining Lease Term: Operating Leases 11 Weighted Average Discount Rate: Operating Leases 3.5 % A summary of future minimum rental payments under such leases as the dates indicated follows: Minimum Rental Payments September 30, 2019 December 31, 2018 (in thousands) Year Ending December 31, 2019 $ 459 $ 2,490 2020 2,038 2,170 2021 1,759 1,694 2022 1,603 1,331 2023 1,541 1,104 Thereafter 8,570 1,074 Total lease payments $ 15,970 $ 9,863 Less imputed interest (2,869 ) Present value of lease liability $ 13,101 |
Recent Accounting Developments
Recent Accounting Developments (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Developments | Recently Adopted Accounting Standards Updates In July 2017, FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interest with a Scope Exception. For public entities, this ASU is effective for annual reporting periods beginning after December 15, 2018. The effect of this update did not have a material impact on the Company’s consolidated financial position. In March 2017, the FASB issued ASU 2017-08, Receivables — Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization of Purchased Callable Debt. The FASB is issuing this ASU to amend the amortization period for certain purchased callable debt securities held at a premium. The FASB is shortening the amortization period for the premium to the earliest call date. Under current generally accepted accounting principles (GAAP), entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. For public business entities, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The effect of this update did not have a material impact on the Company’s consolidated financial position. In February 2016, the FASB issued ASU 2016-02, Leases. This ASU required lessees to put most leases on their balance sheet but recognize expenses on their income statements in a manner similar to today’s accounting. This ASU also eliminated today’s real estate-specific provisions for all companies. For lessors, this ASU modified the classification criteria and the accounting for sales-type and direct financing leases. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods therein. The Company also reviewed contracts to determine if they contain embedded leases. The Company’s balance sheet impact was $15.1 million as of January 1, 2019. This amount was recorded as a right of use asset , included in other assets, with a corresponding lease liability , included in other liabilities . In July 2018, ASU 2018-10, “Codification Improvements to Topic 842, Leases” (“ASU 2018-10”) was issued to provide more detailed guidance and additional clarification for implementing ASU 2016-02. Also in July 2018, ASU 2018-11, “Targeted Improvements” (“ASU 2018-11”) was issued and allows for an optional transition method in which the provisions of Topic 842 would be applied upon the adoption date and would not have to be retroactively applied to the earliest reporting period presented in the consolidated financial statements.” The Company used this optional transition method for the adoption of Topic 842. Accounting Standards Issued but not yet Adopted The following list identifies ASUs applicable to the Company that have been issued by the FASB but are not yet effective: In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU was issued to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is in the process of implementing this ASU, has purchased a software solution and is capturing information needed to implement this ASU. As part of the FASB ASC 326 implementation process the company is using two models: a rating migration model and a probability of default model. The probability of default model is based primarily on four components: loss history, product lifecycle, behavioral attributes and the economic environment. The ratings migration model is designed to estimate loss reserves according to the CECL standard for rated loans or similar instruments. The model structure follows a grade migration approach, where the default rate is based on the probability of each grade transition which is modeled using historical data. The Company has started to input information into the models, and is running the software program and comparing to existing results. In addition, the Company has also begun developing accounting policies, as well as designing and implementing new internal controls relevant to the updated methodologies and models. The Company has not determined the dollar impact as of September 30, 2019. The securities held-to-maturity 2016-13 Since ASU 2016-13, the FASB has issued amendments intended on improving the clarification of the amendment, ASU 2018-19 Codification Improvements to Topic 326, Financial Instruments – Credit Losses and ASU 2019-04 Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging. The amendment in ASU 2018-19 was issued in November 2018 and was intended to clarify that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. The amendment in ASU 2019-04 was issued in April 2019 and was intended to clarify stakeholders’ specific issues about certain aspects of the amendments in ASU 2016-13. ASU 2019-05 Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief was also issued in May 2019. This ASU provides entities the option to irrevocably elect the fair value option for certain financial assets previously measured at amortized costs basis. The fair value option election does not apply to held-to-maturity debt securities. An entity that elects the fair value option should subsequently apply the guidance in Subtopics 820-10, Fair Value Measurement—Overall. The amendments in this ASU should be applied on a modified-retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings balance in the statement of financial position as of the date that an entity early adopted the amendments in ASU 2016-13. In August 2018, FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) The amendments in this ASU align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). This ASU is effective for annual reporting periods beginning after December 15, 2019. The effect of this update is not expected to have a material impact on the Company’s consolidated financial position. In August 2018, FASB issued ASU 2018-14, 715-20): In August 2018, FASB issued ASU 2018-13, In January 2017, the FASB issued ASU 2017-04, Intangibles — Goodwill and Other (Topic 350). This ASU was issued to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. For public entities, this ASU is effective for the fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted and application should be on a prospective basis. The effect of this update is not expected to have a material impact on the Company’s consolidated financial position. Securities and Exchange Commission (SEC) ruling: In August 2018, the SEC issued a final rule that amends certain of the Commission’s disclosure requirements “that have become redundant, duplicative, overlapping, outdated, or superseded, in light of other Commission disclosure requirements, U.S. GAAP, or changes in the information environment.” The financial reporting implications of the final rule’s amendments may vary by company, but the changes are generally expected to reduce or eliminate some of an SEC registrant’s disclosure requirements. In limited circumstances, however, the amendments may expand those requirements, including those related to interim disclosures about changes in stockholders’ equity. Under the requirements, registrants must now analyze changes in stockholders’ equity, in the form of a reconciliation, for “the current and comparative year-to-date periods, with subtotals for each interim period.” Beginning with its March 31, 2019 filing, the Company included a reconciliation for the current quarter and year-to-date interim periods as well as the comparative periods of the prior years (i.e., a reconciliation covering each period for which an income statement is presented). |
Securities Available-for-Sale (
Securities Available-for-Sale (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Text Block [Abstract] | |
Summary of Securities Available-for-Sale | September 30, 2019 December 31, 2018 Amortized Gross Gross Fair Amortized Gross Gross Fair (in thousands) U.S. Treasury $ — $ — $ — $ — $ 2,000 $ — $ 8 $ 1,992 U.S. Government Sponsored Enterprises — — — — 3,946 — 31 3,915 SBA Backed Securities 58,714 51 101 58,664 70,477 1 284 70,194 U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities 170,532 189 439 170,282 162,604 536 250 162,890 Privately Issued Residential Mortgage-Backed Securities 574 6 1 579 679 3 10 672 Obligations Issued by States and Political Subdivisions 28,519 57 — 28,576 93,445 58 — 93,503 Other Debt Securities 3,600 64 26 3,638 3,600 37 44 3,593 Total $ 261,939 $ 367 $ 567 $ 261,739 $ 336,751 $ 635 $ 627 $ 336,759 |
Estimated Maturity Distribution of Securities Available-for-Sale | The following table shows the maturity distribution of the Company’s securities available-for-sale at September 30, 2019. Amortized Fair (in thousands) Within one year $ 26,187 $ 26,184 After one but within five years 134,881 134,811 After five but within ten years 85,551 85,378 More than 10 years 15,320 15,366 Total $ 261,939 $ 261,739 |
Continuous Unrealized Loss Position for 12 Months or Less and 12 Months and Longer | The following table shows the temporarily impaired securities of the Company’s available-for-sale portfolio at September 30, 2019. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for less than 12 months and a continuous loss position for 12 months or longer. There are 24 and 18 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 134 holdings at September 30, 2019. September 30, 2019 Less than 12 months 12 months or longer Total Temporarily Impaired Investments Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) U.S. Treasury $ — $ — $ — $ — $ — $ — U.S. Government Sponsored Enterprises — — — — — — SBA Backed Securities 11,133 11 24,944 90 36,077 101 U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities 81,305 264 27,872 175 109,177 439 Privately Issued Residential Mortgage-Backed Securities — — 282 1 282 1 Obligations Issued by States and Political Subdivisions — — — — — — Other Debt Securities 800 1 475 25 1,275 26 Total temporarily impaired securities $ 93,238 $ 276 $ 53,573 $ 291 $ 146,811 $ 567 The following table shows the temporarily impaired securities of the Company’s available-for-sale portfolio at December 31, 2018. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for less than 12 months and a continuous loss position for 12 months or longer. There are 10 and 30 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 190 holdings at December 31, 2018. December 31, 2018 Less than 12 months 12 months or longer Total Temporarily Impaired Investments Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) U.S. Treasury $ — $ — $ 1,992 $ 8 $ 1,992 $ 8 U.S. Government Sponsored Enterprises 3,914 31 — — 3,914 31 SBA Backed Securities 17,950 28 44,323 256 62,273 284 U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities 19,244 21 45,782 229 65,026 250 Privately Issued Residential Mortgage-Backed Securities — — 495 10 495 10 Obligations Issued by States and Political Subdivisions — — — — — — Other Debt Securities — — 455 44 455 44 Total temporarily impaired securities $ 41,108 $ 80 $ 93,047 $ 547 $ 134,155 $ 627 |
Investment Securities Held-to_2
Investment Securities Held-to-Maturity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Text Block [Abstract] | |
Summary of Held-to-Maturity Securities | September 30, 2019 December 31, 2018 Amortized Gross Gross Losses Estimated Amortized Gross Gross Estimated (in thousands) U.S. Treasury $ — $ — $ — $ — $ 9,960 $ — $ 2 $ 9,958 U.S. Government Sponsored Enterprises 121,516 653 67 122,102 234,228 336 803 233,761 SBA Backed Securities 47,126 452 66 47,512 52,051 — 2,065 49,986 U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities 1,995,493 29,911 6,553 2,018,851 1,750,408 2,324 55,016 1,697,716 Total $ 2,164,135 $ 31,016 $ 6,686 $ 2,188,465 $ 2,046,647 $ 2,660 $ 57,886 $ 1,991,421 |
Company's Securities Held-to-Maturity | The following table shows the maturity distribution of the Company’s securities held-to-maturity at September 30, 2019. Amortized Fair (in thousands) Within one year $ 70,980 $ 71,260 After one but within five years 1,809,564 1,829,087 After five but within ten years 271,068 275,192 More than ten years 12,523 12,926 Total $ 2,164,135 $ 2,188,465 |
Unrealized Market Loss of Securities | The following table shows the temporarily impaired securities of the Company’s held-to-maturity portfolio September 30, 2019. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for 12 months or less and a continuous loss position for 12 months or longer. There are 44 and 112 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 505 holdings at September 30, 2019. September 30, 2019 Less Than 12 Months 12 Months or Longer Total Temporarily Impaired Investments Fair Value Unrealized Fair Unrealized Fair Unrealized (in thousands) U.S. Treasury $ — $ — $ — $ — $ — $ — U.S. Government Sponsored Enterprises 9,976 22 9,954 45 19,930 67 SBA Backed Securities 13,673 66 — — 13,673 66 U.S. Government Agency and Sponsored Enterprise Mortgage- Backed Securities 163,889 816 430,714 5,737 594,603 6,553 Total temporarily impaired securities $ 187,538 $ 904 $ 440,668 $ 5,782 $ 628,206 $ 6,686 The following table shows the temporarily impaired securities of the Company’s held-to-maturity portfolio at December 31, 2018. This table shows the unrealized market loss of securities that have been in a continuous unrealized loss position for less than 12 months and a continuous loss position for 12 months or longer. There are 56 and 315 securities that are temporarily impaired for less than 12 months and for 12 months or longer, respectively, out of a total of 475 holdings at December 31, 2018. December 31, 2018 Less Than 12 Months 12 Months or Longer Total Temporarily Impaired Investments Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) U.S. Treasury $ 9,958 $ 2 $ — $ — $ 9,958 $ 2 U.S. Government Sponsored Enterprises 9,849 42 69,499 761 79,348 803 SBA Backed Securities — — 49,987 2,065 49,987 2,065 U.S. Government Agency and Sponsored Enterprise Mortgage-Backed Securities 188,125 2,032 1,249,689 52,984 1,437,814 55,016 Total temporarily impaired securities $ 207,932 $ 2,076 $ 1,369,175 $ 55,810 $ 1,577,107 $ 57,886 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Analysis of the allowance for loan losses | The following table summarizes the changes in the Company’s allowance for loan losses for the periods indicated. Three months ended Nine months ended 2019 2018 2019 2018 (in thousands) Allowance for loan losses, beginning of period $ 29,070 $ 27,144 $ 28,543 $ 26,255 Loans charged off (118 ) (89 ) (336 ) (247 ) Recoveries on loans previously charged-off 70 1,490 190 1,637 Net recoveries (charge-offs) (48 ) 1,401 (146 ) 1,390 Provision charged to expense 75 — 700 900 Allowance for loan losses, end of period $ 29,097 $ 28,545 $ 29,097 $ 28,545 |
Summary of Allowance for Loan Losses | Further information pertaining to the allowance for loan losses for the three months ending September 30, 2019 is as Construction Commercial Municipal Commercial Residential Consumer Home Unallocated Total (in thousands) Allowance for loan losses: Balance at June 30, 2019 $ 1,052 $ 11,338 $ 1,832 $ 10,848 $ 2,210 $ 380 $ 1,120 $ 290 $ 29,070 Charge-offs — (57 ) — — — (61 ) — — (118 ) Recoveries — 23 — — — 47 — — 70 Provision (752 ) 9 751 53 (24 ) (84 ) (33 ) 155 75 Ending balance at September 30, 2019 $ 300 $ 11,313 $ 2,583 $ 10,901 $ 2,186 $ 282 $ 1,087 $ 445 $ 29,097 Amount of allowance for loan losses loans deemed to be impaired $ — $ 2 $ — $ 86 $ — $ — $ — $ — $ 88 Amount of allowance for loan losses for loans not deemed to be impaired $ 300 $ 11,311 $ 2,583 $ 10,815 $ 2,186 $ 282 $ 1,087 $ 445 $ 29,009 Loans: Ending balance $ 7,824 $ 783,950 $ 121,802 $ 765,385 $ 364,317 $ 21,748 $ 310,635 $ — $ 2,375,661 Loans deemed to be impaired $ — $ 203 $ — $ 2,373 $ — $ — $ — $ — $ 2,576 Loans not deemed to be impaired $ 7,824 $ 783,747 $ 121,802 $ 763,012 $ 364,317 $ 21,748 $ 310,635 $ — $ 2,373,085 Further information pertaining to the allowance for loan losses for the nine months ending September 30, 2019 is as Construction Commercial Municipal Commercial Residential Consumer Home Unallocated Total (in thousands) Allowance for loan losses: Balance at December 31, 2018 $ 1,092 $ 10,998 $ 1,838 $ 10,663 $ 2,190 $ 365 $ 1,111 $ 286 $ 28,543 Charge-offs — (108 ) — — — (228 ) — — (336 ) Recoveries — 49 — — — 141 — — 190 Provision (792 ) 374 745 238 (4 ) 4 (24 ) 159 700 Ending balance at September 30, 2019 $ 300 $ 11,313 $ 2,583 $ 10,901 $ 2,186 $ 282 $ 1,087 $ 445 $ 29,097 Amount of allowance for loan losses for loans deemed to be impaired $ — $ 2 $ — $ 86 $ — $ — $ — $ — $ 88 Amount of allowance for loan losses for loans not deemed to be impaired $ 300 $ 11,311 $ 2,583 $ 10,815 $ 2,186 $ 282 $ 1,087 $ 445 $ 29,009 Loans: Ending balance $ 7,824 $ 783,950 $ 121,802 $ 765,385 $ 364,317 $ 21,748 $ 310,635 $ — $ 2,375,661 Loans deemed to be impaired $ — $ 203 $ — $ 2,373 $ — $ — $ — $ — $ 2,576 Loans not deemed to be impaired $ 7,824 $ 783,747 $ 121,802 $ 763,012 $ 364,317 $ 21,748 $ 310,635 $ — $ 2,373,085 Further information pertaining to the allowance for loan losses for the three months ending September 30, 2018 follows: Construction Commercial Municipal Commercial Residential Consumer Home Unallocated Total (in thousands) Allowance for loan losses: Balance at June 30, 2018 $ 633 $ 10,384 $ 1,704 $ 10,209 $ 2,493 $ 336 $ 1,078 $ 307 $ 27,144 Charge-offs — (11 ) — — — (78 ) — — (89 ) Recoveries 1,432 16 — — — 42 — — 1,490 Provision (1,155 ) 895 84 415 (182 ) 32 (28 ) (61 ) — Ending balance at September 30, 2018 $ 910 $ 11,284 $ 1,788 $ 10,624 $ 2,311 $ 332 $ 1,050 $ 246 $ 28,545 Amount of allowance for loan losses $ — $ 93 $ — $ 95 $ 350 $ — $ — $ — $ 538 Amount of allowance for loan losses $ 910 $ 11,191 $ 1,788 $ 10,529 $ 1,961 $ 332 $ 1,050 $ 246 $ 28,007 Loans: Ending balance $ 12,434 $ 783,960 $ 94,532 $ 730,265 $ 335,114 $ 21,216 $ 283,818 $ — $ 2,261,339 Loans deemed to be impaired $ — $ 660 $ — $ 2,680 $ 2,675 $ — $ — $ — $ 6,015 Loans not deemed to be impaired $ 12,434 $ 783,300 $ 94,532 $ 727,585 $ 332,439 $ 21,216 $ 283,818 $ — $ 2,255,324 Further information pertaining to the allowance for loan losses for the nine months ending September 30, 2018 follows: Construction Commercial Municipal Commercial Residential Consumer Home Unallocated Total (in thousands) Allowance for loan losses: Balance at December 31, 2 017 $ 1,645 $ 9,651 $ 1,720 $ 9,728 $ 1,873 $ 373 $ 989 $ 276 $ 26,255 Charge-offs — (16 ) — — — (231 ) — — (247 ) Recoveries 1,432 49 — — — 156 — — 1,637 Provision (2,167 ) 1,600 68 896 438 34 61 (30 ) 900 Ending balance at September 30, 2018 $ 910 $ 11,284 $ 1,788 $ 10,624 $ 2,311 $ 332 $ 1,050 $ 246 $ 28,545 Amount of allowance for loan losses for loans deemed to be impaired $ — $ 93 $ — $ 95 $ 350 $ — $ — $ — $ 538 Amount of allowance for loan losses for loans not deemed to be impaired $ 910 $ 11,191 $ 1,788 $ 10,529 $ 1,961 $ 332 $ 1,050 $ 246 $ 28,007 Loans: Ending balance $ 12,434 $ 783,960 $ 94,532 $ 730,265 $ 335,114 $ 21,216 $ 283,818 $ — $ 2,261,339 Loans deemed to be impaired $ — $ 660 $ — $ 2,680 $ 2,675 $ — $ — $ — $ 6,015 Loans not deemed to be impaired $ 12,434 $ 783,300 $ 94,532 $ 727,585 $ 332,439 $ 21,216 $ 283,818 $ — $ 2,255,324 |
Loans by Risk Rating | The following table presents the Company’s loans by risk rating at September 30, 2019. Construction Commercial Municipal Commercial (in thousands) Grade: 1-3 (Pass) $ 7,824 $ 779,722 $ 121,802 $ 738,459 4 (Monitor) — 4,025 — 24,553 5 (Substandard) — — — — 6 (Doubtful) — — — — Impaired — 203 — 2,373 Total $ 7,824 $ 783,950 $ 121,802 $ 765,385 The following table presents the Company’s loans by risk rating at December 31, 2018. Construction Commercial Municipal Commercial (in thousands) Grade: 1-3 (Pass) $ 13,628 $ 757,089 $ 97,290 $ 723,170 4 (Monitor) — 4,135 — 24,542 5 (Substandard) — — — — 6 (Doubtful) — — — — Impaired — 401 — 2,650 Total $ 13,628 $ 761,625 $ 97,290 $ 750,362 |
Loans by Credit Rating | Credit ratings issued by national organizations were utilized as credit quality indicators as presented in the following table at September 30, 2019 and are included within the total loan portfolio. Commercial Municipal Commercial Total (in thousands) Credit Rating: Aaa – Aa3 $ 497,124 $ 54,495 $ 40,759 $ 592,378 A1 – A3 187,970 7,479 148,735 344,184 Baa1 – Baa3 — 51,133 122,288 173,421 Ba2 — 5,895 — 5,895 Total $ 685,094 $ 119,002 $ 311,782 $ 1,115,878 Credit ratings issued by national organizations were utilized as credit quality indicators as presented in the following table at December 31, 2018. Commercial Municipal Commercial Total (in thousands) Credit Rating: Aaa – Aa3 $ 491,247 $ 54,105 $ 42,790 $ 588,142 A1 – A3 172,472 7,605 151,381 331,458 Baa1 – Baa3 — 26,970 118,197 145,167 Ba2 — 6,810 — 6,810 Total $ 663,719 $ 95,490 $ 312,368 $ 1,071,577 |
Aging of Past Due Loan Losses | Further information pertaining to the allowance for loan losses at September 30, 2019 follows: Accruing 30-89 Days Non Accruing Total Current Total (in thousands) Construction and land development $ — $ — $ — $ — $ 7,824 $ 7,824 Commercial and industrial 108 19 — 127 783,823 783,950 Municipal — — — — 121,802 121,802 Commercial real estate 155 167 — 322 765,063 765,385 Residential real estate 1,129 334 — 1,463 362,854 364,317 Consumer and overdrafts 15 — — 15 21,733 21,748 Home equity 1,050 546 — 1,596 309,039 310,635 Total $ 2,457 $ 1,066 $ — $ 3,523 $ 2,372,138 $ 2,375,661 Further information pertaining to the allowance for loan losses at December 31, 2018 follows: Accruing 30-89 Days Non Accruing Total Current Total (in thousands) Construction and land development $ — $ — $ — $ — $ 13,628 $ 13,628 Commercial and industrial 187 115 — 302 761,323 761,625 Municipal — — — — 97,290 97,290 Commercial real estate 774 190 — 964 749,398 750,362 Residential real estate 2,554 569 — 3,123 345,127 348,250 Consumer and overdrafts 24 14 — 38 22,045 22,083 Home equity 1,108 425 — 1,533 290,807 292,340 Total $ 4,647 $ 1,313 $ — $ 5,960 $ 2,279,618 $ 2,285,578 |
Information Pertaining to Impaired Loans | The following is information pertaining to impaired loans for September 30, 2019: Carrying Unpaid Required Average Interest Average Interest (in thousands) With no required reserve recorded: Construction and land development $ — $ — $ — $ — $ — $ — $ — Commercial and industrial 87 306 — 89 2 87 6 Municipal — — — — — — — Commercial real estate 167 194 — 729 — 529 — Residential real estate — — — — — — — Consumer — — — — — — — Home equity — — — — — — — Total $ 254 $ 500 $ — $ 818 $ 2 $ 616 $ 6 With required reserve recorded: Construction and land development $ — $ — $ — $ — $ — $ — $ — Commercial and industrial 116 116 2 310 2 299 6 Municipal — — — — — — — Commercial real estate 2,206 2,326 86 2,140 23 2,350 67 Residential real estate — — — — — — — Consumer — — — — — — — Home equity — — — — — — — Total $ 2,322 $ 2,442 $ 88 $ 2,450 $ 25 $ 2,649 $ 73 Total: Construction and land development $ — $ — $ — $ — $ — $ — $ — Commercial and industrial 203 422 2 399 4 386 12 Municipal — — — — — — — Commercial real estate 2,373 2,520 86 2,869 23 2,879 67 Residential real estate — — — — — — — Consumer — — — — — — — Home equity — — — — — — — Total $ 2,576 $ 2,942 $ 88 $ 3,268 $ 27 $ 3,265 $ 79 The following is information pertaining to impaired loans for September 30, 2018: Carrying Unpaid Required Average 9 Interest 9 Average 9 9 Interest 9 9 (in thousands) With no required reserve recorded: Construction and land development $ — $ — $ — $ — $ — $ — $ — Commercial and industrial 84 282 — 56 — 47 — Municipal — — — — — — — Commercial real estate 196 219 — 280 — 267 — Residential real estate — — — — — — — Consumer — — — — — — — Home equity — — — — — — — Total $ 280 $ 501 $ — $ 336 $ — $ 314 $ — With required reserve recorded: Construction and land development $ — $ — $ — $ — $ — $ — $ — Commercial and industrial 576 593 93 589 5 490 14 Municipal — — — — — — — Commercial real estate 2,484 2,597 95 2,262 24 2,278 71 Residential real estate 2,675 2,675 350 2,675 — 3,136 80 Consumer — — — — — — — Home equity — — — — — — — Total $ 5,735 $ 5,865 $ 538 $ 5,526 $ 29 $ 5,904 $ 165 Total: Construction and land development $ — $ — $ — $ — $ — $ — $ — Commercial and industrial 660 875 93 645 5 537 14 Municipal — — — — — — — Commercial real estate 2,680 2,816 95 2,542 24 2,545 71 Residential real estate 2,675 2,675 350 2,675 — 3,136 80 Consumer — — — — — — — Home equity — — — — — — — Total $ 6,015 $ 6,366 $ 538 $ 5,862 $ 29 $ 6,218 $ 165 |
Reclassifications Out of Accu_2
Reclassifications Out of Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Text Block [Abstract] | |
Reclassifications Out of Accumulated Other Comprehensive Income | Amount Reclassified from Accumulated Other Comprehensive Income Details about Accumulated Other Comprehensive Income Components Three Three Affected Line Item in the Statement where Net Income is Presented (in thousands) Unrealized gains and losses on available-for-sale securities $ 54 $ 105 Net gains on sales of Tax (expense) or benefit (15 ) (29 ) Provision for income taxes Net of tax $ 39 $ 76 Net income Accretion of unrealized losses transferred $ (209 ) $ (323 ) Interest on securities Tax (expense) or benefit 54 85 Provision for income taxes Net of tax $ (155 ) $ (238 ) Net income Amortization of defined benefit pension items Prior-service costs $ (29 ) $ (4 )(b) Salaries and employee benefits Actuarial gains (losses) (337 ) (402 )(b) Salaries and employee benefits Total before tax (366 ) (406 ) Income before taxes Tax (expense) or benefit 103 114 Provision for income taxes Net of tax $ (263 ) $ (292 ) Net income Details about Accumulated Other Comprehensive Income Components Nine Nine Affected Line Item in the Statement where Net Income is Presented (in thousands) Unrealized gains and losses on available-for-sale securities $ 61 $ 302 Net gains on sales of Tax (expense) or benefit (17 ) (85 ) Provision for income taxes Net of tax $ 44 $ 217 Net income Accretion of unrealized losses transferred $ (779 ) $ (1,186 ) Interest on securities Tax (expense) or benefit 205 314 Provision for income taxes Net of tax $ (574 ) $ (872 ) Net income Amortization of defined benefit pension items Prior-service costs $ (86 ) $ (12 ) ( b Salaries and employee benefits Actuarial gains (losses) (1,013 ) (1,207 ) ( b Salaries and employee benefits Total before tax (1,099 ) (1,219 ) Income before taxes Tax (expense) or benefit 309 342 Provision for income taxes Net of tax $ (790 ) $ (877 ) Net income (a) Amount in parentheses indicates reductions to net income. (b) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Employee Benefits footnote (Note 8) for additional details). |
Earnings per share ("EPS") (Tab
Earnings per share ("EPS") (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic EPS and Diluted EPS | The following table is a reconciliation of basic EPS and diluted EPS. Three Months Ended Nine Months Ended (in thousands except share and per share data) 2019 2018 2019 2018 Basic EPS Computation: Numerator: Net income, Class A $ 7,986 $ 7,535 $ 22,849 $ 20,674 Net income, Class B 2,098 2,046 6,118 5,614 Denominator: Weighted average shares outstanding, Class A 3,650,449 3,608,329 3,627,076 3,608,129 Weighted average shares outstanding, Class B 1,917,460 1,959,580 1,940,833 1,959,780 Basic EPS, Class A $ 2.19 $ 2.09 $ 6.30 $ 5.73 Basic EPS, Class B 1.09 1.04 3.15 2.86 Diluted EPS Computation: Numerator: Net income, Class A $ 7,986 $ 7,535 $ 22,849 $ 20,674 Net income, Class B 2,098 2,046 6,118 5,614 Total net income, for diluted EPS, Class A computation 10,084 9,581 28,967 26,288 Denominator: Weighted average shares outstanding, basic, Class A 3,650,449 3,608,329 3,627,076 3,608,129 Weighted average shares outstanding, Class B 1,917,460 1,959,580 1,940,833 1,959,780 Weighted average shares outstanding diluted, Class A 5,567,909 5,567,909 5,567,909 5,567,909 Weighted average shares outstanding, Class B 1,917,460 1,959,580 1,940,833 1,959,780 Diluted EPS, Class A $ 1.81 $ 1.72 $ 5.20 $ 4.72 Diluted EPS, Class B 1.09 1.04 3.15 2.86 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost for the Three Months Ended September 30, Pension Benefits Supplemental Insurance/ 2019 2018 2019 2018 (in thousands) Service cost $ 276 $ 353 $ 256 $ 277 Interest 473 371 482 346 Expected return on plan assets (819 ) (954 ) — — Recognized prior service cost (benefit) — (25 ) 28 29 Recognized net actuarial losses 229 226 109 176 Net periodic benefit cost (credit) $ 159 $ (29 ) $ 875 $ 828 Components of Net Periodic Benefit Cost for the Nine Months Ended September 30, Pension Benefits Supplemental Insurance/ 2019 2018 2019 2018 (in thousands) Service cost $ 828 $ 1,059 $ 768 $ 831 Interest 1,419 1,111 1,445 1,040 Expected return on plan assets (2,457 ) (2,863 ) — — Recognized prior service cost (benefit) — (75 ) 86 87 Recognized net actuarial losses 687 680 326 527 Net periodic benefit cost (credit) $ 477 $ (88 ) $ 2,625 $ 2,485 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments Measured at Fair Value on a Recurring and Non-recurring Basis | The results of the fair value hierarchy as of September 30, 2019, are as follows: Financial Instruments Measured at Fair Value on a Recurring Basis: Securities AFS Fair Value Measurements Using Carrying Quoted Prices Significant Significant (in thousands) SBA Backed Securities $ 58,664 $ — $ 58,664 $ — U.S. Government Agency and Sponsored Mortgage-Backed Securities 170,282 — 170,282 — Privately Issued Residential Mortgage- 579 — 579 — Obligations Issued by States and Political Subdivisions 28,576 — 4,775 23,801 Other Debt Securities 3,638 — 3,638 — Total $ 261,739 $ — $ 237,938 $ 23,801 Equity Securities $ 1,672 $ 324 $ 1,348 $ — Financial Instruments Measured at Fair Value on a Non-recurring Basis: Impaired Loans $ 173 $ — $ — $ 173 Financial Instruments Measured at Fair Value on a Recurring Basis: Securities AFS Fair Value Measurements Using Carrying Quoted Prices Significant Significant (in thousands) U.S. Treasury $ 1,992 $ — $ 1,992 $ — U.S. Government Sponsored Enterprises 3,915 — 3,915 — SBA Backed Securities 70,194 — 70,194 — U.S. Government Agency and Sponsored Mortgage-Backed Securities 162,890 — 162,890 — Privately Issued Residential Mortgage- 672 — 672 — Obligations Issued by States and Political Subdivisions 93,503 — 4,775 88,728 Other Debt Securities 3,593 3,593 Total $ 336,759 $ — $ 248,031 $ 88,728 Equity Securities $ 1,596 $ 293 $ 1,303 $ — Financial Instruments Measured at Fair Value on a Non-recurring Basis: Other Real Estate Owned $ 2,225 $ — $ — $ 2,225 Impaired Loans $ 251 $ — $ — $ 251 |
Assets Measured at Fair Value | The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands). Management continues to monitor the assumptions used to value the assets listed below. Asset Fair Value Valuation Technique Unobservable Input Unobservable Input Securities AFS (4) $ 23,801 Discounted cash flow Discount rate 1.7%-3.1% (3) Impaired Loans $ 173 Appraisal of collateral (1) Appraisal adjustments (2) 0%-30% discount (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses. (3) Weighted averages. (4) Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value. The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands). Management continues to monitor the assumptions used to value the assets listed below. Asset Fair Value Valuation Technique Unobservable Input Unobservable Input Securities AFS (4) $ 88,728 Discounted cash flow Discount rate 2.1%-4.1% (3) Other Real Estate Owned $ 2,225 Appraisal of collateral (1) Appraisal adjustments (2) 30% discount Impaired Loans $ 251 Appraisal of collateral (1) Appraisal adjustments (2) 0%-30% discount (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses. (3) Weighted averages. (4) Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value. |
Changes in Level 3 Securities | The changes in Level 3 securities for the nine month period ended September 30, 2019 are shown in the table below: Obligations (in thousands) Balance at December 31, 2018 $ 88,728 Purchases 13,290 Maturities and calls (78,196 ) Amortization (21 ) Balance at September 30, 2019 $ 23,801 Auction Rate Obligations Total (in thousands) Balance at December 31, 2017 $ 4,459 $ 78,141 $ 82,600 Purchases — 105,837 105,837 Maturities and calls — (72,640 ) (72,640 ) Transfer to Level 2 (4,459 ) — (4,459 ) Amortization — (104 ) (104 ) Changes in fair value — — — Balance at September 30, 2018 $ — $ 111,234 $ 111,234 |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, All Other Investments [Abstract] | |
Carrying Amounts and Fair Values of Company's Financial Instruments | The following presents (in thousands) the carrying amount, estimated fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2019 and December 31, 2018. This table excludes financial instruments for which the carrying amount approximates fair value. Financial assets for which the fair value approximates carrying value include cash and cash equivalents, short-term investments, FHLBB stock and accrued interest receivable. Financial liabilities for which the fair value approximates carrying value include non-maturity deposits, short-term borrowings and accrued interest payable. September 30, 2019 Carrying Estimated Fair Value Level 2 Level 3 (in thousands) Financial assets: Securities held-to-maturity $ 2,164,135 $ 2,188,465 $ — $ 2,188,465 $ — Loans (1) 2,346,564 2,398,515 — — 2,398,515 Financial liabilities: Time deposits 533,074 532,135 — 532,135 — Other borrowed funds 209,188 209,263 — 209,263 — Subordinated debentures 36,083 36,083 — 36,083 — December 31, 2018 Financial assets: Securities held-to-maturity $ 2,046,647 $ 1,991,421 $ — $ 1,991,421 $ — Loans (1) 2,257,035 2,279,712 — — 2,279,712 Financial liabilities: Time deposits 560,579 559,988 — 559,988 — Other borrowed funds 202,378 203,122 — 203,122 — Subordinated debentures 36,083 36,083 — 36,083 — (1) Comprised of loans (including collateral dependent impaired loans), net of deferred loan costs and the allowance for loan losses. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue From Contracts | The following table presents total revenues as presented in the Consolidated Statements of Income and the related amounts which are from contracts with customers within the scope of Topic 606. As illustrated here, the vast majority of our revenues are specifically excluded from the scope of Topic 606. Nine Revenue from Nine Revenue from (dollars in thousands) Net $ 70,458 $ — $ 68,871 $ — Noninterest income: Service charges on deposit accounts 6,801 6,801 6,268 6,268 Lockbox fees 3,018 3,018 2,304 2,304 Net gains on sales of securities 61 — 302 — Gains on sales of mortgage loans 154 — — — Other income 3,676 2,338 3,210 2,215 Total noninterest income 13,710 12,157 12,084 10,787 Total reven ues $ 84,168 $ 12,157 $ 80,955 $ 10,787 Three Revenue from Three Revenue from (dollars in thousands) Net $ 23,770 $ — $ 23,204 $ — Noninterest income: Service charges on deposit accounts 2,310 2,310 2,137 2,137 Lockbox fees 937 937 892 892 Net gains on sales of securities 53 — 105 — Gains on sales of mortgage loans — — — — Other income 986 728 1,035 751 Total noninterest income 4,286 3,975 4,169 3,780 Total revenues $ 28,056 $ 3,975 $ 27,373 $ 3,780 |
Information about Receivables with Customers | The following table provides information about receivables with customers. September 30, 2019 December 31, 2018 (dollars in thousands) Receivables, which are included in “Other assets” $ 1,142 $ 1,205 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Components of lease expense | The components of lease expense were as follows: Three Months Nine Months (in thousands) Operating lease cost $ 550 $ 1,676 Variable lease cost 121 405 Total lease cost $ 671 $ 2,081 |
Supplemental cash flow information related to leases | Supplemental cash flow information related to leases was as follows: Three Months Nine Months (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 528 $ 1,605 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 433 $ 1,318 |
Supplemental balance sheet information related to leases | Supplemental balance sheet information related to leases was as follows: 9/30/2019 (in thousands, except lease term and discount rate) Operating Leases: Operating lease right-of-use assets $ 12,944 Operating lease liabilities $ 13,101 Weighted Average Remaining Lease Term: Operating Leases 11 Weighted Average Discount Rate: Operating Leases 3.5 % |
Maturities of lease liabilities | A summary of future minimum rental payments under such leases as the dates indicated follows: Minimum Rental Payments September 30, 2019 December 31, 2018 (in thousands) Year Ending December 31, 2019 $ 459 $ 2,490 2020 2,038 2,170 2021 1,759 1,694 2022 1,603 1,331 2023 1,541 1,104 Thereafter 8,570 1,074 Total lease payments $ 15,970 $ 9,863 Less imputed interest (2,869 ) Present value of lease liability $ 13,101 |
Basis of Financial Statement _2
Basis of Financial Statement Presentation - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019Segment | |
Number of Reportable Segments | 1 |
Century Bancorp Capital Trust II [Member] | |
Equity ownership interest | 100.00% |
Recent Accounting Development_2
Recent Accounting Developments - Additional Information (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Operating Lease, Right-of-Use Asset | $ 12,944 |
Accounting Standards Update 2016-02 [Member] | |
Operating Lease, Right-of-Use Asset | $ 15,100 |
Securities Available-for-Sale -
Securities Available-for-Sale - Summary of Securities Available-for-Sale (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 261,939 | $ 336,751 |
Gross Unrealized Gains | 367 | 635 |
Gross Unrealized Losses | 567 | 627 |
Total, Fair Value | 261,739 | 336,759 |
U.S. Treasury [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,000 | |
Gross Unrealized Losses | 8 | |
Total, Fair Value | 1,992 | |
U.S. Government Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,946 | |
Gross Unrealized Losses | 31 | |
Total, Fair Value | 3,915 | |
SBA Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 58,714 | 70,477 |
Gross Unrealized Gains | 51 | 1 |
Gross Unrealized Losses | 101 | 284 |
Total, Fair Value | 58,664 | 70,194 |
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 170,532 | 162,604 |
Gross Unrealized Gains | 189 | 536 |
Gross Unrealized Losses | 439 | 250 |
Total, Fair Value | 170,282 | 162,890 |
Privately Issued Residential Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 574 | 679 |
Gross Unrealized Gains | 6 | 3 |
Gross Unrealized Losses | 1 | 10 |
Total, Fair Value | 579 | 672 |
Obligations Issued by States and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 28,519 | 93,445 |
Gross Unrealized Gains | 57 | 58 |
Total, Fair Value | 28,576 | 93,503 |
Other Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,600 | 3,600 |
Gross Unrealized Gains | 64 | 37 |
Gross Unrealized Losses | 26 | 44 |
Total, Fair Value | $ 3,638 | $ 3,593 |
Securities Available-for-Sale_2
Securities Available-for-Sale - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($)Security | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)Security | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($)Security | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Securities at fair value pledged to secure public deposits and repurchase agreements | $ 1,692,033,000 | $ 1,692,033,000 | $ 1,441,059,000 | ||
Securities available-for-sale are securities at fair value pledged for borrowing | 32,590,000 | 32,590,000 | $ 34,787,000 | ||
Gross gains on sales of securities | 53,000 | $ 105,000 | 61,000 | $ 302,000 | |
Proceeds from sales of securities available-for-sale | 16,285,000 | $ 27,517,000 | |||
Securities at floating rate or adjustable rate | $ 234,949,000 | 234,949,000 | |||
Federal Home Loan Bank [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Gross gains on sales of securities | $ 13,000 | ||||
Securities AFS [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Weighted average remaining life of investment securities available-for-sale | 5 years 1 month 6 days | ||||
Number of securities, temporarily impaired for less than 12 months | Security | 24 | 24 | 10 | ||
Number of securities, temporarily impaired for 12 months or longer | Security | 18 | 18 | 30 | ||
Number of securities, temporarily impaired, total | Security | 134 | 134 | 190 | ||
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Securities at fair value pledged to secure public deposits and repurchase agreements | $ 196,356,000 | $ 196,356,000 | $ 197,304,000 |
Securities Available-for-Sale_3
Securities Available-for-Sale - Estimated Maturity Distribution of Securities Available-for-Sale (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Within one year, Amortized Cost | $ 26,187 | |
After one but within five years, Amortized Cost | 134,881 | |
After five but within ten years, Amortized Cost | 85,551 | |
More than ten years, Amortized Cost | 15,320 | |
Amortized Cost | 261,939 | $ 336,751 |
Within one year, Fair Value | 26,184 | |
After one but within five years, Fair Value | 134,811 | |
After five but within ten years, Fair Value | 85,378 | |
More than ten years, Fair Value | 15,366 | |
Total, Fair Value | $ 261,739 | $ 336,759 |
Securities Available-for-Sale_4
Securities Available-for-Sale - Continuous Unrealized Loss Position for 12 Months or Less and 12 Months and Longer (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | $ 93,238 | $ 41,108 |
Less Than 12 Months, Unrealized Losses | 276 | 80 |
12 Months or Longer, Fair Value | 53,573 | 93,047 |
12 Months or Longer, Unrealized Losses | 291 | 547 |
Total, Fair Value | 146,811 | 134,155 |
Total, Unrealized Losses | 567 | 627 |
U.S. Treasury [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 Months or Longer, Fair Value | 1,992 | |
12 Months or Longer, Unrealized Losses | 8 | |
Total, Fair Value | 1,992 | |
Total, Unrealized Losses | 8 | |
U.S. Government Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 3,914 | |
Less Than 12 Months, Unrealized Losses | 31 | |
Total, Fair Value | 3,914 | |
Total, Unrealized Losses | 31 | |
SBA Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 11,133 | 17,950 |
Less Than 12 Months, Unrealized Losses | 11 | 28 |
12 Months or Longer, Fair Value | 24,944 | 44,323 |
12 Months or Longer, Unrealized Losses | 90 | 256 |
Total, Fair Value | 36,077 | 62,273 |
Total, Unrealized Losses | 101 | 284 |
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 81,305 | 19,244 |
Less Than 12 Months, Unrealized Losses | 264 | 21 |
12 Months or Longer, Fair Value | 27,872 | 45,782 |
12 Months or Longer, Unrealized Losses | 175 | 229 |
Total, Fair Value | 109,177 | 65,026 |
Total, Unrealized Losses | 439 | 250 |
Privately Issued Residential Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
12 Months or Longer, Fair Value | 282 | 495 |
12 Months or Longer, Unrealized Losses | 1 | 10 |
Total, Fair Value | 282 | 495 |
Total, Unrealized Losses | 1 | 10 |
Other Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 800 | |
Less Than 12 Months, Unrealized Losses | 1 | |
12 Months or Longer, Fair Value | 475 | 455 |
12 Months or Longer, Unrealized Losses | 25 | 44 |
Total, Fair Value | 1,275 | 455 |
Total, Unrealized Losses | $ 26 | $ 44 |
Investment Securities Held-to_3
Investment Securities Held-to-Maturity - Summary of Held-to-Maturity Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 2,164,135 | $ 2,046,647 |
Gross Unrealized Gains | 31,016 | 2,660 |
Gross Unrealized Losses | 6,686 | 57,886 |
Estimated Fair Value | 2,188,465 | 1,991,421 |
U.S. Treasury [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 9,960 | |
Gross Unrealized Losses | 2 | |
Estimated Fair Value | 9,958 | |
U.S. Government Sponsored Enterprises [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 121,516 | 234,228 |
Gross Unrealized Gains | 653 | 336 |
Gross Unrealized Losses | 67 | 803 |
Estimated Fair Value | 122,102 | 233,761 |
SBA Backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 47,126 | 52,051 |
Gross Unrealized Gains | 452 | |
Gross Unrealized Losses | 66 | 2,065 |
Estimated Fair Value | 47,512 | 49,986 |
Mortgage-Backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 1,995,493 | 1,750,408 |
Gross Unrealized Gains | 29,911 | 2,324 |
Gross Unrealized Losses | 6,553 | 55,016 |
Estimated Fair Value | $ 2,018,851 | $ 1,697,716 |
Investment Securities Held-to_4
Investment Securities Held-to-Maturity - Additional Information (Detail) | 9 Months Ended | |
Sep. 30, 2019USD ($)Security | Dec. 31, 2018USD ($)Security | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities at fair value pledged to secure public deposits and repurchase agreements | $ 1,692,033,000 | $ 1,441,059,000 |
Securities held to maturity at floating rate or adjustable rate | 111,000 | |
Sales of held-to-maturity securities | 1,194,000 | |
Commercial Mortgage Backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Gross realised gains on sale of held to maturity securities | 48,000 | |
Sales of held-to-maturity securities | $ 1,194,000 | |
Held-to-Maturity Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Weighted average remaining life of investment securities held-to-maturity | 3 years 7 months 6 days | |
Number of securities, temporarily impaired for less than 12 months | Security | 44 | 56 |
Number of securities, temporarily impaired for 12 months or longer | Security | 112 | 315 |
Number of securities, temporarily impaired, total | Security | 505 | 475 |
Held-to-Maturity Securities [Member] | U.S. Government Sponsored Enterprises [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Weighted average remaining life | $ 66,196,000 | |
Federal Home Loan Bank [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities pledged for borrowing at the Federal Home Loan Bank | $ 427,425,000 | $ 291,190,000 |
Investment Securities Held-to_5
Investment Securities Held-to-Maturity - Company's Securities Held-to-Maturity (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Within one year, Amortized Cost | $ 70,980 | |
After one but within five years, Amortized Cost | 1,809,564 | |
After five but within ten years, Amortized Cost | 271,068 | |
More than ten years, Amortized Cost | 12,523 | |
Amortized Cost | 2,164,135 | $ 2,046,647 |
Within one year, Fair Value | 71,260 | |
After one but within five years, Fair Value | 1,829,087 | |
After five but within ten years, Fair Value | 275,192 | |
More than ten years, Fair Value | 12,926 | |
Estimated Fair Value | $ 2,188,465 | $ 1,991,421 |
Investment Securities Held-to_6
Investment Securities Held-to-Maturity - Unrealized Market Loss of Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Less Than 12 Months, Fair Value | $ 187,538 | $ 207,932 |
Less Than 12 Months, Unrealized Losses | 904 | 2,076 |
12 Months or Longer, Fair Value | 440,668 | 1,369,175 |
12 Months or Longer, Unrealized Losses | 5,782 | 55,810 |
Total, Fair Value | 628,206 | 1,577,107 |
Total, Unrealized Losses | 6,686 | 57,886 |
U.S. Treasury [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Less Than 12 Months, Fair Value | 9,958 | |
Less Than 12 Months, Unrealized Losses | 2 | |
Total, Fair Value | 9,958 | |
Total, Unrealized Losses | 2 | |
U.S. Government Sponsored Enterprises [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Less Than 12 Months, Fair Value | 9,976 | 9,849 |
Less Than 12 Months, Unrealized Losses | 22 | 42 |
12 Months or Longer, Fair Value | 9,954 | 69,499 |
12 Months or Longer, Unrealized Losses | 45 | 761 |
Total, Fair Value | 19,930 | 79,348 |
Total, Unrealized Losses | 67 | 803 |
SBA Backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Less Than 12 Months, Fair Value | 13,673 | |
Less Than 12 Months, Unrealized Losses | 66 | |
12 Months or Longer, Fair Value | 49,987 | |
12 Months or Longer, Unrealized Losses | 2,065 | |
Total, Fair Value | 13,673 | 49,987 |
Total, Unrealized Losses | 66 | 2,065 |
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Less Than 12 Months, Fair Value | 163,889 | 188,125 |
Less Than 12 Months, Unrealized Losses | 816 | 2,032 |
12 Months or Longer, Fair Value | 430,714 | 1,249,689 |
12 Months or Longer, Unrealized Losses | 5,737 | 52,984 |
Total, Fair Value | 594,603 | 1,437,814 |
Total, Unrealized Losses | $ 6,553 | $ 55,016 |
Allowance for Loan Losses - Ana
Allowance for Loan Losses - Analysis of Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Receivables [Abstract] | ||||
Allowance for loan losses, beginning of year | $ 29,070 | $ 27,144 | $ 28,543 | $ 26,255 |
Loans charged-off | (118) | (89) | (336) | (247) |
Recoveries on loans previously charged-off | 70 | 1,490 | 190 | 1,637 |
Net recoveries (charge-offs) | (48) | 1,401 | (146) | 1,390 |
Provision charged to expense | 75 | 700 | 900 | |
Allowance for loan losses, end of year | $ 29,097 | $ 28,545 | $ 29,097 | $ 28,545 |
Allowance for Loan Losses - Sum
Allowance for Loan Losses - Summary of Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Allowance for Loan Losses: | ||||||
Allowance for loan losses, beginning of year | $ 29,070 | $ 27,144 | $ 28,543 | $ 26,255 | ||
Charge-offs | (118) | (89) | (336) | (247) | ||
Recoveries | 70 | 1,490 | 190 | 1,637 | ||
Provision | 75 | 700 | 900 | |||
Allowance for loan losses, end of year | 29,097 | 28,545 | $ 27,144 | 29,097 | 28,545 | |
Amount of allowance for loan losses for loans deemed to be impaired | 88 | 538 | 88 | 538 | ||
Amount of allowance for loan losses for loans not deemed to be impaired | 29,009 | 28,007 | 29,009 | 28,007 | ||
Loans: | ||||||
Total loans, net | 2,375,661 | 2,261,339 | 2,375,661 | 2,261,339 | $ 2,285,578 | |
Loans deemed to be impaired | 2,576 | 6,015 | 2,576 | 6,015 | ||
Loans not deemed to be impaired | 2,373,085 | 2,255,324 | 2,373,085 | 2,255,324 | ||
Construction and Land Development [Member] | ||||||
Allowance for Loan Losses: | ||||||
Allowance for loan losses, beginning of year | 1,052 | 633 | 1,092 | 1,645 | ||
Recoveries | 1,432 | 1,432 | ||||
Provision | (752) | (1,155) | (792) | (2,167) | ||
Allowance for loan losses, end of year | 300 | 910 | 633 | 300 | 910 | |
Amount of allowance for loan losses for loans not deemed to be impaired | 300 | 910 | 300 | 910 | ||
Loans: | ||||||
Total loans, net | 7,824 | 12,434 | 7,824 | 12,434 | 13,628 | |
Loans not deemed to be impaired | 7,824 | 12,434 | 7,824 | 12,434 | ||
Commercial and Industrial [Member] | ||||||
Allowance for Loan Losses: | ||||||
Allowance for loan losses, beginning of year | 11,338 | 10,384 | 10,998 | 9,651 | ||
Charge-offs | (57) | (11) | (108) | (16) | ||
Recoveries | 23 | 16 | 49 | 49 | ||
Provision | 9 | 895 | 374 | 1,600 | ||
Allowance for loan losses, end of year | 11,313 | 11,284 | 10,384 | 11,313 | 11,284 | |
Amount of allowance for loan losses for loans deemed to be impaired | 2 | 93 | 2 | 93 | ||
Amount of allowance for loan losses for loans not deemed to be impaired | 11,311 | 11,191 | 11,311 | 11,191 | ||
Loans: | ||||||
Total loans, net | 783,950 | 783,960 | 783,950 | 783,960 | 761,625 | |
Loans deemed to be impaired | 203 | 660 | 203 | 660 | ||
Loans not deemed to be impaired | 783,747 | 783,300 | 783,747 | 783,300 | ||
Municipal [Member] | ||||||
Allowance for Loan Losses: | ||||||
Allowance for loan losses, beginning of year | 1,832 | 1,704 | 1,838 | 1,720 | ||
Provision | 751 | 84 | 745 | 68 | ||
Allowance for loan losses, end of year | 2,583 | 1,788 | 1,704 | 2,583 | 1,788 | |
Amount of allowance for loan losses for loans not deemed to be impaired | 2,583 | 1,788 | 2,583 | 1,788 | ||
Loans: | ||||||
Total loans, net | 121,802 | 94,532 | 121,802 | 94,532 | 97,290 | |
Loans not deemed to be impaired | 121,802 | 94,532 | 121,802 | 94,532 | ||
Commercial Real Estate [Member] | ||||||
Allowance for Loan Losses: | ||||||
Allowance for loan losses, beginning of year | 10,848 | 10,209 | 10,663 | 9,728 | ||
Provision | 53 | 415 | 238 | 896 | ||
Allowance for loan losses, end of year | 10,901 | 10,624 | 10,209 | 10,901 | 10,624 | |
Amount of allowance for loan losses for loans deemed to be impaired | 86 | 95 | 86 | 95 | ||
Amount of allowance for loan losses for loans not deemed to be impaired | 10,815 | 10,529 | 10,815 | 10,529 | ||
Loans: | ||||||
Total loans, net | 765,385 | 730,265 | 765,385 | 730,265 | 750,362 | |
Loans deemed to be impaired | 2,373 | 2,680 | 2,373 | 2,680 | ||
Loans not deemed to be impaired | 763,012 | 727,585 | 763,012 | 727,585 | ||
Residential Real Estate [Member] | ||||||
Allowance for Loan Losses: | ||||||
Allowance for loan losses, beginning of year | 2,210 | 2,493 | 2,190 | 1,873 | ||
Provision | (24) | (182) | (4) | 438 | ||
Allowance for loan losses, end of year | 2,186 | 2,311 | 2,493 | 2,186 | 2,311 | |
Amount of allowance for loan losses for loans deemed to be impaired | 350 | 350 | ||||
Amount of allowance for loan losses for loans not deemed to be impaired | 2,186 | 1,961 | 2,186 | 1,961 | ||
Loans: | ||||||
Total loans, net | 364,317 | 335,114 | 364,317 | 335,114 | 348,250 | |
Loans deemed to be impaired | 2,675 | 2,675 | ||||
Loans not deemed to be impaired | 364,317 | 332,439 | 364,317 | 332,439 | ||
Consumer [Member] | ||||||
Allowance for Loan Losses: | ||||||
Allowance for loan losses, beginning of year | 380 | 336 | 365 | 373 | ||
Charge-offs | (61) | (78) | (228) | (231) | ||
Recoveries | 47 | 42 | 141 | 156 | ||
Provision | (84) | 32 | 4 | 34 | ||
Allowance for loan losses, end of year | 282 | 332 | 336 | 282 | 332 | |
Amount of allowance for loan losses for loans not deemed to be impaired | 282 | 332 | 282 | 332 | ||
Loans: | ||||||
Total loans, net | 21,748 | 21,216 | 21,748 | 21,216 | 22,083 | |
Loans not deemed to be impaired | 21,748 | 21,216 | 21,748 | 21,216 | ||
Home Equity [Member] | ||||||
Allowance for Loan Losses: | ||||||
Allowance for loan losses, beginning of year | 1,120 | 1,078 | 1,111 | 989 | ||
Provision | (33) | (28) | (24) | 61 | ||
Allowance for loan losses, end of year | 1,087 | 1,050 | 1,078 | 1,087 | 1,050 | |
Amount of allowance for loan losses for loans not deemed to be impaired | 1,087 | 1,050 | 1,087 | 1,050 | ||
Loans: | ||||||
Total loans, net | 310,635 | 283,818 | 310,635 | 283,818 | $ 292,340 | |
Loans not deemed to be impaired | 310,635 | 283,818 | 310,635 | 283,818 | ||
Unallocated [Member] | ||||||
Allowance for Loan Losses: | ||||||
Allowance for loan losses, beginning of year | 290 | 307 | 286 | 276 | ||
Provision | 155 | (61) | 159 | (30) | ||
Allowance for loan losses, end of year | 445 | $ 246 | 307 | 445 | 246 | |
Amount of allowance for loan losses for loans not deemed to be impaired | 445 | $ 246 | 445 | $ 246 | ||
Loans: | ||||||
Total loans, net | $ 2,375,661 | $ 2,375,661 |
Allowance for Loan Losses - Loa
Allowance for Loan Losses - Loans by Risk Rating (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Loans by risk rating | |||
Financing Receivable, Net | $ 2,375,661 | $ 2,285,578 | $ 2,261,339 |
Construction and Land Development [Member] | |||
Loans by risk rating | |||
Financing Receivable, Net | 7,824 | 13,628 | 12,434 |
Commercial and Industrial [Member] | |||
Loans by risk rating | |||
Financing Receivable, Net | 783,950 | 761,625 | 783,960 |
Municipal [Member] | |||
Loans by risk rating | |||
Financing Receivable, Net | 121,802 | 97,290 | 94,532 |
Commercial Real Estate [Member] | |||
Loans by risk rating | |||
Financing Receivable, Net | 765,385 | 750,362 | $ 730,265 |
1-3 (Pass) [Member] | Construction and Land Development [Member] | |||
Loans by risk rating | |||
Financing Receivable, Net | 7,824 | 13,628 | |
1-3 (Pass) [Member] | Commercial and Industrial [Member] | |||
Loans by risk rating | |||
Financing Receivable, Net | 779,722 | 757,089 | |
1-3 (Pass) [Member] | Municipal [Member] | |||
Loans by risk rating | |||
Financing Receivable, Net | 121,802 | 97,290 | |
1-3 (Pass) [Member] | Commercial Real Estate [Member] | |||
Loans by risk rating | |||
Financing Receivable, Net | 738,459 | 723,170 | |
4 (Monitor) [Member] | Commercial and Industrial [Member] | |||
Loans by risk rating | |||
Financing Receivable, Net | 4,025 | 4,135 | |
4 (Monitor) [Member] | Commercial Real Estate [Member] | |||
Loans by risk rating | |||
Financing Receivable, Net | 24,553 | 24,542 | |
Impaired [Member] | Commercial and Industrial [Member] | |||
Loans by risk rating | |||
Financing Receivable, Net | 203 | 401 | |
Impaired [Member] | Commercial Real Estate [Member] | |||
Loans by risk rating | |||
Financing Receivable, Net | $ 2,373 | $ 2,650 |
Allowance for Loan Losses - L_2
Allowance for Loan Losses - Loans by Credit Rating (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable net of deferred income credit quality | $ 1,115,878 | $ 1,071,577 |
Aaa - Aa3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable net of deferred income credit quality | 592,378 | 588,142 |
A1 - A3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable net of deferred income credit quality | 344,184 | 331,458 |
Baa1 - Baa3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable net of deferred income credit quality | 173,421 | 145,167 |
Ba2 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable net of deferred income credit quality | 5,895 | 6,810 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable net of deferred income credit quality | 685,094 | 663,719 |
Commercial and Industrial [Member] | Aaa - Aa3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable net of deferred income credit quality | 497,124 | 491,247 |
Commercial and Industrial [Member] | A1 - A3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable net of deferred income credit quality | 187,970 | 172,472 |
Municipal [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable net of deferred income credit quality | 119,002 | 95,490 |
Municipal [Member] | Aaa - Aa3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable net of deferred income credit quality | 54,495 | 54,105 |
Municipal [Member] | A1 - A3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable net of deferred income credit quality | 7,479 | 7,605 |
Municipal [Member] | Baa1 - Baa3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable net of deferred income credit quality | 51,133 | 26,970 |
Municipal [Member] | Ba2 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable net of deferred income credit quality | 5,895 | 6,810 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable net of deferred income credit quality | 311,782 | 312,368 |
Commercial Real Estate [Member] | Aaa - Aa3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable net of deferred income credit quality | 40,759 | 42,790 |
Commercial Real Estate [Member] | A1 - A3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable net of deferred income credit quality | 148,735 | 151,381 |
Commercial Real Estate [Member] | Baa1 - Baa3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans and leases receivable net of deferred income credit quality | $ 122,288 | $ 118,197 |
Allowance for Loan Losses - Agi
Allowance for Loan Losses - Aging of Past Due Loans (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Accruing 30-89 Days Past Due | $ 2,457 | $ 4,647 | |
Non Accrual | 1,066 | 1,313 | |
Total Past Due | 3,523 | 5,960 | |
Current Loans | 2,372,138 | 2,279,618 | |
Total loans, net | 2,375,661 | 2,285,578 | $ 2,261,339 |
Construction and Land Development [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Current Loans | 7,824 | 13,628 | |
Total loans, net | 7,824 | 13,628 | 12,434 |
Commercial and Industrial [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Accruing 30-89 Days Past Due | 108 | 187 | |
Non Accrual | 19 | 115 | |
Total Past Due | 127 | 302 | |
Current Loans | 783,823 | 761,323 | |
Total loans, net | 783,950 | 761,625 | 783,960 |
Municipal [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Current Loans | 121,802 | 97,290 | |
Total loans, net | 121,802 | 97,290 | 94,532 |
Commercial Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Accruing 30-89 Days Past Due | 155 | 774 | |
Non Accrual | 167 | 190 | |
Total Past Due | 322 | 964 | |
Current Loans | 765,063 | 749,398 | |
Total loans, net | 765,385 | 750,362 | 730,265 |
Residential Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Accruing 30-89 Days Past Due | 1,129 | 2,554 | |
Non Accrual | 334 | 569 | |
Total Past Due | 1,463 | 3,123 | |
Current Loans | 362,854 | 345,127 | |
Total loans, net | 364,317 | 348,250 | 335,114 |
Consumer and overdrafts [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Accruing 30-89 Days Past Due | 15 | 24 | |
Non Accrual | 14 | ||
Total Past Due | 15 | 38 | |
Current Loans | 21,733 | 22,045 | |
Total loans, net | 21,748 | 22,083 | 21,216 |
Home Equity [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Accruing 30-89 Days Past Due | 1,050 | 1,108 | |
Non Accrual | 546 | 425 | |
Total Past Due | 1,596 | 1,533 | |
Current Loans | 309,039 | 290,807 | |
Total loans, net | $ 310,635 | $ 292,340 | $ 283,818 |
Allowance for Loan Losses - Inf
Allowance for Loan Losses - Information Pertaining to Impaired Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
With no required reserve recorded, Carrying Value | $ 254 | $ 280 | $ 254 | $ 280 |
With no required reserve recorded, Unpaid Balance Principal | 500 | 501 | 500 | 501 |
With no required reserve recorded, Average Carrying Value Recognized | 818 | 336 | 616 | 314 |
With no required reserve recorded, Interest Income | 2 | 6 | ||
With required reserve recorded, Carrying Value | 2,322 | 5,735 | 2,322 | 5,735 |
With required reserve recorded, Unpaid Balance Principal | 2,442 | 5,865 | 2,442 | 5,865 |
With required reserve recorded, Required Reserve | 88 | 538 | 88 | 538 |
With required reserve recorded, Average Carrying Value Recognized | 2,450 | 5,526 | 2,649 | 5,904 |
With required reserve recorded, Interest Income | 25 | 29 | 73 | 165 |
Carrying Value | 2,576 | 6,015 | 2,576 | 6,015 |
Unpaid Balance Principal | 2,942 | 6,366 | 2,942 | 6,366 |
With required reserve recorded, Required Reserve | 88 | 538 | 88 | 538 |
Average Carrying Value Recognized | 3,268 | 3,265 | 6,218 | |
Interest Income | 27 | 29 | 79 | 165 |
Construction and Land Development [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
With no required reserve recorded, Carrying Value | 84 | 84 | ||
With no required reserve recorded, Unpaid Balance Principal | 282 | 282 | ||
With no required reserve recorded, Average Carrying Value Recognized | 56 | 47 | ||
Commercial and Industrial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
With no required reserve recorded, Carrying Value | 87 | 87 | ||
With no required reserve recorded, Unpaid Balance Principal | 306 | 306 | ||
With no required reserve recorded, Average Carrying Value Recognized | 89 | 87 | ||
With no required reserve recorded, Interest Income | 2 | 6 | ||
With required reserve recorded, Carrying Value | 116 | 576 | 116 | 576 |
With required reserve recorded, Unpaid Balance Principal | 116 | 593 | 116 | 593 |
With required reserve recorded, Required Reserve | 2 | 93 | 2 | 93 |
With required reserve recorded, Average Carrying Value Recognized | 310 | 589 | 299 | 490 |
With required reserve recorded, Interest Income | 2 | 5 | 6 | 14 |
Carrying Value | 203 | 660 | 203 | 660 |
Unpaid Balance Principal | 422 | 875 | 422 | 875 |
With required reserve recorded, Required Reserve | 2 | 93 | 2 | 93 |
Average Carrying Value Recognized | 645 | 386 | 537 | |
Interest Income | 4 | 5 | 12 | 14 |
Municipal [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Average Carrying Value Recognized | 399 | |||
Commercial Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
With no required reserve recorded, Carrying Value | 167 | 196 | 167 | 196 |
With no required reserve recorded, Unpaid Balance Principal | 194 | 219 | 194 | 219 |
With no required reserve recorded, Average Carrying Value Recognized | 729 | 280 | 529 | 267 |
With required reserve recorded, Carrying Value | 2,206 | 2,484 | 2,206 | 2,484 |
With required reserve recorded, Unpaid Balance Principal | 2,326 | 2,597 | 2,326 | 2,597 |
With required reserve recorded, Required Reserve | 86 | 95 | 86 | 95 |
With required reserve recorded, Average Carrying Value Recognized | 2,140 | 2,262 | 2,350 | 2,278 |
With required reserve recorded, Interest Income | 23 | 24 | 67 | 71 |
Carrying Value | 2,373 | 2,680 | 2,373 | 2,680 |
Unpaid Balance Principal | 2,520 | 2,816 | 2,520 | 2,816 |
With required reserve recorded, Required Reserve | 86 | 95 | 86 | 95 |
Average Carrying Value Recognized | 2,869 | 2,542 | 2,879 | 2,545 |
Interest Income | $ 23 | 24 | $ 67 | 71 |
Residential Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
With required reserve recorded, Carrying Value | 2,675 | 2,675 | ||
With required reserve recorded, Unpaid Balance Principal | 2,675 | 2,675 | ||
With required reserve recorded, Required Reserve | 350 | 350 | ||
With required reserve recorded, Average Carrying Value Recognized | 2,675 | 3,136 | ||
With required reserve recorded, Interest Income | 80 | |||
Carrying Value | 2,675 | 2,675 | ||
Unpaid Balance Principal | 2,675 | 2,675 | ||
With required reserve recorded, Required Reserve | 350 | 350 | ||
Average Carrying Value Recognized | 2,675 | 3,136 | ||
Interest Income | $ 80 | |||
Home Equity [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Average Carrying Value Recognized | $ 5,862 |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional Information (Detail) | 9 Months Ended | |
Sep. 30, 2019USD ($)ContractsContract | Sep. 30, 2018USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Specific reserves | $ 88,000 | $ 538,000 |
Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of troubled debt restructurings | Contracts | 1 | |
Post-modification outstanding recorded investment | 2,675,000 | |
Specific reserves | 350,000 | |
Troubled debt restructurings, subsequently defaulted | $ 2,675,000 | |
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Number of troubled debt restructurings | Contract | 1 | |
Pre-modification outstanding recorded investment | $ 17,000 | |
Post-modification outstanding recorded investment | 17,000 | |
Specific reserves | $ 1,000 |
Reclassifications Out of Accu_3
Reclassifications Out of Accumulated Other Comprehensive Income - Reclassifications Out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net gains on sales of securities | $ 53 | $ 105 | $ 61 | $ 302 |
Provision for income taxes | (435) | (444) | (584) | (1,259) |
Net income | 10,084 | 9,581 | 28,967 | 26,288 |
Salaries and employee benefits | (10,670) | (10,570) | (32,621) | (32,331) |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains and Losses on Available-for-Sale Securities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net gains on sales of securities | 54 | 105 | 61 | 302 |
Provision for income taxes | (15) | (29) | (17) | (85) |
Net income | 39 | 76 | 44 | 217 |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Accretion of Unrealized Losses Transferred [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net gains on sales of securities | (209) | (323) | (779) | (1,186) |
Provision for income taxes | 54 | 85 | 205 | 314 |
Net income | (155) | (238) | (574) | (872) |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Prior-Service Costs [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Salaries and employee benefits | (29) | (4) | (86) | (12) |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Actuarial Gains (Losses) [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Salaries and employee benefits | (337) | (402) | (1,013) | (1,207) |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | Amortization of Defined Benefit Pension Items [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income before taxes | (366) | (406) | (1,099) | (1,219) |
Provision for income taxes | 103 | 114 | 309 | 342 |
Net income | $ (263) | $ (292) | $ (790) | $ (877) |
Earnings per Share ("EPS") - Ad
Earnings per Share ("EPS") - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019 | |
Class A Common Stock [Member] | Minimum [Member] | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Class A common stock entitled dividend per share percent in comparison to Class B common stock | 200.00% |
Earnings Per Share ("EPS") - Re
Earnings Per Share ("EPS") - Reconciliation of Basic EPS and Diluted EPS (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income | $ 10,084 | $ 9,581 | $ 28,967 | $ 26,288 |
Class A Common Stock [Member] | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income | $ 7,986 | $ 7,535 | $ 22,849 | $ 20,674 |
Weighted average shares outstanding, basic | 3,650,449 | 3,608,329 | 3,627,076 | 3,608,129 |
Basic earnings per share | $ 2.19 | $ 2.09 | $ 6.30 | $ 5.73 |
Net income | $ 7,986 | $ 7,535 | $ 22,849 | $ 20,674 |
Weighted average shares outstanding, diluted | 5,567,909 | 5,567,909 | 5,567,909 | 5,567,909 |
Diluted earnings per share | $ 1.81 | $ 1.72 | $ 5.20 | $ 4.72 |
Class B Common Stock [Member] | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income | $ 2,098 | $ 2,046 | $ 6,118 | $ 5,614 |
Weighted average shares outstanding, basic | 1,917,460 | 1,959,580 | 1,940,833 | 1,959,780 |
Basic earnings per share | $ 1.09 | $ 1.04 | $ 3.15 | $ 2.86 |
Net income | $ 2,098 | $ 2,046 | $ 6,118 | $ 5,614 |
Weighted average shares outstanding, diluted | 1,917,460 | 1,959,580 | 1,940,833 | 1,959,780 |
Diluted earnings per share | $ 1.09 | $ 1.04 | $ 3.15 | $ 2.86 |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Expected Future Employer Contributions, Current Fiscal Year | $ 0 | |
Accounting Standards Update 2017-07 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Reclassification from salaries and employee benefits to other expenses | $ 1,506,000 | $ 507,000 |
Employee Benefits - Components
Employee Benefits - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Defined Benefit Pension Plan [Member] | ||||
Components of net periodic benefit cost | ||||
Service cost | $ 276 | $ 353 | $ 828 | $ 1,059 |
Interest cost | 473 | 371 | 1,419 | 1,111 |
Expected return on plan assets | (819) | (954) | (2,457) | (2,863) |
Recognized prior service cost | (25) | (75) | ||
Recognized net losses | 229 | 226 | 687 | 680 |
Net periodic benefit cost (credit) | 159 | (29) | 477 | (88) |
Supplemental Insurance/ Retirement Plan [Member] | ||||
Components of net periodic benefit cost | ||||
Service cost | 256 | 277 | 768 | 831 |
Interest cost | 482 | 346 | 1,445 | 1,040 |
Recognized prior service cost | 28 | 29 | 86 | 87 |
Recognized net losses | 109 | 176 | 326 | 527 |
Net periodic benefit cost (credit) | $ 875 | $ 828 | $ 2,625 | $ 2,485 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Specific adjustments to impaired loans recognized | $ (204,837) | $ 37,099 | $ 540,000 | |
Amortized cost of Level 3 securities | 1,635,000 | 1,635,000 | 1,635,000 | |
Liabilities measured at fair value on a recurring or nonrecurring basis | 0 | 0 | $ 0 | $ 0 |
Unrealized loss | 0 | |||
Impaired Loans [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair value of loans | (78,000) | |||
Fair Value Measurements, Level 3 Inputs [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Amortized cost of Level 3 securities | 23,801,000,000 | 23,801,000,000 | $ 111,234,000,000 | |
Unrealized loss | $ 0 | $ 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value (Detail) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Fair Value | [1] | $ 88,728 | |
Securities AFS [Member] | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Fair Value | $ 23,801 | ||
Valuation Technique | [1] | Discounted cash flow | Discounted cash flow |
Unobservable Input | [1] | Discount rate | Discount rate |
Impaired Loans [Member] | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Fair Value | $ 173 | $ 251 | |
Valuation Technique | Appraisal of collateral | ||
Unobservable Input | Appraisal adjustments | ||
Other Real Estate Owned [Member] | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Fair Value | $ 2,225 | ||
Valuation Technique | Appraisal of collateral | Appraisal of collateral | |
Unobservable Input | Appraisal adjustments | Appraisal adjustments | |
Unobservable Input Value or Range | 30.00% | ||
Minimum [Member] | Securities AFS [Member] | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Securities AFS, Unobservable Input Value or Range | 1.7 | 2.1 | |
Minimum [Member] | Impaired Loans [Member] | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Impaired Loans, Unobservable Input Value or Range | 0 | 0 | |
Maximum [Member] | Securities AFS [Member] | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Securities AFS, Unobservable Input Value or Range | 3.1 | 4.1 | |
Maximum [Member] | Impaired Loans [Member] | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Impaired Loans, Unobservable Input Value or Range | 30 | 30 | |
[1] | Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Level 3 Securities (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | $ 82,600 | |
Purchases | 105,837 | |
Maturities/redemptions | (72,640) | |
Transfer to Level 2 | (4,459) | |
Amortization | (104) | |
Ending Balance | 111,234 | |
Auction Rate Securities [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | 4,459 | |
Transfer to Level 2 | (4,459) | |
Obligations Issued by States and Political Subdivisions [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | $ 88,728 | 78,141 |
Purchases | 13,290 | 105,837 |
Maturities/redemptions | (78,196) | (72,640) |
Amortization | (21) | (104) |
Ending Balance | $ 23,801 | $ 111,234 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Measured at Fair Value on a Recurring and Non-recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | $ 261,739 | $ 336,759 | |
Financial Instruments Measured at Fair Value on a Non-recurring Basis Impaired Loans | [1] | 88,728 | |
Fair Value Measurements, Level 2 Inputs [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | 237,938 | 248,031 | |
Fair Value Measurements, Level 3 Inputs [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | 23,801 | 88,728 | |
Other Real Estate Owned | 2,225 | ||
Financial Instruments Measured at Fair Value on a Non-recurring Basis Impaired Loans | 173 | 251 | |
U.S. Treasury [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | 1,992 | ||
U.S. Treasury [Member] | Fair Value Measurements, Level 2 Inputs [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | 1,992 | ||
U.S. Government Sponsored Enterprises [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | 3,915 | ||
U.S. Government Sponsored Enterprises [Member] | Fair Value Measurements, Level 2 Inputs [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | 3,915 | ||
SBA Backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | 58,664 | 70,194 | |
SBA Backed Securities [Member] | Fair Value Measurements, Level 2 Inputs [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | 58,664 | 70,194 | |
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | 170,282 | 162,890 | |
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities [Member] | Fair Value Measurements, Level 2 Inputs [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | 170,282 | 162,890 | |
Privately Issued Residential Mortgage-Backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | 579 | 672 | |
Privately Issued Residential Mortgage-Backed Securities [Member] | Fair Value Measurements, Level 2 Inputs [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | 579 | 672 | |
Obligations Issued by States and Political Subdivisions [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | 28,576 | 93,503 | |
Obligations Issued by States and Political Subdivisions [Member] | Fair Value Measurements, Level 2 Inputs [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | 4,775 | 4,775 | |
Obligations Issued by States and Political Subdivisions [Member] | Fair Value Measurements, Level 3 Inputs [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | 23,801 | 88,728 | |
Other Debt Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | 3,638 | 3,593 | |
Other Debt Securities [Member] | Fair Value Measurements, Level 2 Inputs [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | 3,638 | 3,593 | |
Equity Securities [Member] | Fair Value Measurements, Level 1 Inputs [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial Instruments Measured at Fair Value on a Non Recurring Basis Equity Securities | 324 | 293 | |
Equity Securities [Member] | Fair Value Measurements, Level 2 Inputs [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial Instruments Measured at Fair Value on a Non Recurring Basis Equity Securities | 1,348 | 1,303 | |
Carrying Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | 261,739 | 336,759 | |
Other Real Estate Owned | 2,225 | ||
Financial Instruments Measured at Fair Value on a Non-recurring Basis Impaired Loans | 173 | 251 | |
Carrying Value [Member] | U.S. Treasury [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | 1,992 | ||
Carrying Value [Member] | U.S. Government Sponsored Enterprises [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | 3,915 | ||
Carrying Value [Member] | SBA Backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | 58,664 | 70,194 | |
Carrying Value [Member] | U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | 170,282 | 162,890 | |
Carrying Value [Member] | Privately Issued Residential Mortgage-Backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | 579 | 672 | |
Carrying Value [Member] | Obligations Issued by States and Political Subdivisions [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | 28,576 | 93,503 | |
Carrying Value [Member] | Other Debt Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities AFS | 3,638 | 3,593 | |
Carrying Value [Member] | Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial Instruments Measured at Fair Value on a Non Recurring Basis Equity Securities | $ 1,672 | $ 1,596 | |
[1] | Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments - Carrying Amount and Fair Value of Company's Financial Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Financial assets: | |||
Securities held-to-maturity | $ 2,164,135 | $ 2,046,647 | |
Loans | 2,346,564 | 2,257,035 | |
Financial liabilities: | |||
Time deposits | 533,074 | 560,579 | |
Other borrowed funds | 209,188 | 202,378 | |
Subordinated debentures | 36,083 | 36,083 | |
Carrying Value [Member] | |||
Financial assets: | |||
Securities held-to-maturity | 2,164,135 | 2,046,647 | |
Loans | 2,346,564 | 2,257,035 | [1] |
Financial liabilities: | |||
Time deposits | 533,074 | 560,579 | |
Other borrowed funds | 209,188 | 202,378 | |
Subordinated debentures | 36,083 | 36,083 | |
Estimated Fair Value [Member] | |||
Financial assets: | |||
Securities held-to-maturity | 2,188,465 | 1,991,421 | |
Loans | 2,398,515 | 2,279,712 | [1] |
Financial liabilities: | |||
Time deposits | 532,135 | 559,988 | |
Other borrowed funds | 209,263 | 203,122 | |
Subordinated debentures | 36,083 | 36,083 | |
Fair Value Measurements, Level 2 Inputs [Member] | |||
Financial assets: | |||
Securities held-to-maturity | 2,188,465 | 1,991,421 | |
Financial liabilities: | |||
Time deposits | 532,135 | 559,988 | |
Other borrowed funds | 209,263 | 203,122 | |
Subordinated debentures | 36,083 | 36,083 | |
Fair Value Measurements, Level 3 Inputs [Member] | |||
Financial assets: | |||
Loans | $ 2,398,515 | $ 2,279,712 | |
[1] | Comprised of loans (including collateral dependent impaired loans), net of deferred loan costs and the allowance for loan losses. |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Schedule of Revenue from Contracts (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Net interest income | $ 23,770 | $ 23,204 | $ 70,458 | $ 68,871 |
Noninterest income: | ||||
Service charges on deposit accounts | 2,310 | 2,137 | 6,801 | 6,268 |
Lockbox fees | 937 | 892 | 3,018 | 2,304 |
Net gains on sales of securities | 53 | 105 | 61 | 302 |
Gains on sales of mortgage loans | 0 | 154 | ||
Other income | 986 | 1,035 | 3,676 | 3,210 |
Total noninterest income | 4,286 | 4,169 | 13,710 | 12,084 |
ASU 2014-09 [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net interest income | 23,770 | 23,204 | 70,458 | 68,871 |
Noninterest income: | ||||
Service charges on deposit accounts | 2,310 | 2,137 | 6,801 | 6,268 |
Lockbox fees | 937 | 892 | 3,018 | 2,304 |
Net gains on sales of securities | 53 | 105 | 61 | 302 |
Gains on sales of mortgage loans | 154 | |||
Other income | 986 | 1,035 | 3,676 | 3,210 |
Total noninterest income | 4,286 | 4,169 | 13,710 | 12,084 |
Total revenues | 28,056 | 27,373 | 84,168 | 80,955 |
ASU 2014-09 [Member] | Revenue Guidance Contracts in Scope of Topic 606 [Member] | ||||
Noninterest income: | ||||
Service charges on deposit accounts | 2,310 | 2,137 | 6,801 | 6,268 |
Lockbox fees | 937 | 892 | 3,018 | 2,304 |
Other income | 728 | 751 | 2,338 | 2,215 |
Total noninterest income | 3,975 | 3,780 | 12,157 | 10,787 |
Total revenues | $ 3,975 | $ 3,780 | $ 12,157 | $ 10,787 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Information about Receivables with Customers (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Other Assets [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Receivables, which are included in "Other assets" | $ 1,142 | $ 1,205 |
Leases - Additional Information
Leases - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Operating lease option to extend | options to extend the leases for up to 10 years, and some of which include options to terminate the leases within 1 year. |
Sublease Income | $ 29,000 |
Sublease option to terminate | sublease expires in 2022 with an option to terminate and no option to extend. |
Maximum [Member] | |
Operating lease remaining lease term | 32 years |
Minimum [Member] | |
Operating lease remaining lease term | 1 year |
Leases - Components of lease ex
Leases - Components of lease expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Operating lease cost | $ 550 | $ 1,676 |
Variable lease cost | 121 | 405 |
Total lease cost | $ 671 | $ 2,081 |
Leases - Supplemental cash flow
Leases - Supplemental cash flow information related to leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 528 | $ 1,605 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | $ 433 | $ 1,318 |
Leases - Supplemental balance s
Leases - Supplemental balance sheet information related to leases (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Operating Leases: | |
Operating lease right-of-use assets, included in other assets | $ 12,944 |
Operating lease liabilities, included in other liabilities | $ 13,101 |
Weighted Average Remaining Lease Term: | |
Operating Leases | 11 years |
Weighted Average Discount Rate: | |
Operating Leases | 3.50% |
Leases - Summary of Future Mini
Leases - Summary of Future Minimum Rental Payments (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Year Ending December 31, 2019 | $ 459 | $ 2,490 |
2020 | 2,038 | 2,170 |
2021 | 1,759 | 1,694 |
2022 | 1,603 | 1,331 |
2023 | 1,541 | 1,104 |
Thereafter | 8,570 | 1,074 |
Total lease payments | 15,970 | $ 9,863 |
Less imputed interest | (2,869) | |
Present value of lease liability | $ 13,101 |