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x
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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Maine
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01-0413282
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(State or Other Jurisdiction of
Incorporation or Organization)
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(I.R.S. Employer
Identification No.)
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2 Elm Street, Camden, ME
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04843
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(Address of Principal Executive Offices)
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(Zip Code)
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Title of Each Class
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Name of Exchange on Which Registered
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Common Stock, without par value
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The NASDAQ Stock Market LLC
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Large accelerated filer
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o
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Accelerated filer
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x
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Non-accelerated filer
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o
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(Do not check if a smaller reporting company)
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Smaller reporting company
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o
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Emerging growth company
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o
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Page
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PART I
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PART II
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PART III
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PART IV
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•
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weakness in the United States economy in general and the regional and local economies within the New England region and Maine, which could result in a deterioration of credit quality, an increase in the allowance for loan losses or a reduced demand for the Company’s credit or fee-based products and services;
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•
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changes in trade, monetary, and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System;
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•
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inflation, interest rate, market, and monetary fluctuations;
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•
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competitive pressures, including continued industry consolidation and the increased financial services provided by non-banks;
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•
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volatility in the securities markets that could adversely affect the value or credit quality of the Company’s assets, impairment of goodwill, or the availability and terms of funding necessary to meet the Company’s liquidity needs, and that could lead to impairment in the value of securities in the Company's investment portfolio;
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•
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changes in information technology that require increased capital spending;
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•
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changes in consumer spending and savings habits;
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•
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changes in tax, banking, securities and insurance laws and regulations; and
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•
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changes in accounting policies, practices and standards, as may be adopted by the regulatory agencies as well as the Financial Accounting Standards Board ("FASB"), and other accounting standard setters.
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•
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2014 —
We achieved loan growth of $192.2 million. We expanded our franchise outside of Maine by opening our first commercial loan office in Manchester, New Hampshire. This commercial loan office provided us with a wider reach across northern New England and access to new markets.
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•
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2015 —
We completed the acquisition of SBM Financial, Inc. ("SBM"), the parent company of The Bank of Maine, on October 16, 2015. This was and continues to be the Company's largest acquisition to-date, with total acquired assets of $816.3 million, including loans of $628.0 million, and deposits and borrowings of $721.2 million. The acquisition provided us with an expanded presence in Southern and Central Maine, significant low-cost deposits (including interest and non-interest checking, savings and money market), and strengthened our mortgage banking platform.
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•
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2016 —
We achieved loan growth of $104.4 million, or 4%, and deposits growth of $102.2 million, or 4%.
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•
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2017 —
We achieved loan growth of $187.9 million, or 7% and deposits growth of $172.0 million, or 6%, driven by low-cost deposits growth of 11%.
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•
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2018 —
We achieved loan growth of $243.8 million, or 9% and deposits growth of $464.0 million, or 15%, driven by low-cost deposits growth of 15%.
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•
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Camden National Wealth Management
provides a broad range of fiduciary and asset management services to both individual and institutional clients. The wealth management services provided by Camden National Wealth Management complement the services provided by the Bank, offering high net worth individuals and families, businesses and not-for profit customers investment management, financial planning and trustee services.
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•
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Camden Financial Consultants
is in the business of helping clients meet all of their financial needs. Camden Financial Consultants provides full-service brokerage and insurance and its financial offerings include college, retirement, and estate planning, mutual funds, strategic asset management accounts, and variable and fixed annuities.
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Executive Officer
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Age
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Position
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Gregory A. Dufour
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58
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President and Chief Executive Officer
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Joanne T. Campbell
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56
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Executive Vice President, Risk Management Officer
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Deborah A. Jordan
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53
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Executive Vice President, Chief Operating and Financial Officer
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Timothy P. Nightingale
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61
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Executive Vice President, Senior Loan Officer
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Patricia A. Rose
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55
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Executive Vice President, Retail and Mortgage Banking Officer
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Facility Name
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Location
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General
Character of the Physical Property
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Primary Business Segment
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Property
Status
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Property
Square Feet
(1)
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Main Office
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Camden, Maine
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3 story building
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Branch and principal executive office
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Owned
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15,500
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Canal Plaza
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Portland, Maine
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2 floors
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Branch and executive office
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Leased
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16,355
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Hanley Center
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Rockport, Maine
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2 story building
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Service center
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Owned
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32,360
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Gardiner
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Gardiner, Maine
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3 story building
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Branch and service center
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Owned
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17,497
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Kennebunk
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Kennebunk, Maine
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2 story building
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Branch and service center
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Owned
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9,982
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Auburn
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Auburn, Maine
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3 story building
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Branch
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Owned
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13,000
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Bangor
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Bangor, Maine
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1 floor
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Branch
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Leased
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17,432
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Ellsworth
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Ellsworth, Maine
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3 story building
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Branch
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Owned
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44,000
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(2)
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Rockland
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Rockland, Maine
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3 story building
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Branch
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Owned
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21,600
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Waterville
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Waterville, Maine
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1 floor
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Branch
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Leased
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3,500
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(1)
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Total square footage for leased locations represents the amount of space the Company occupies.
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(2)
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Includes space leased to third parties.
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2018
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2017
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||||||||||||||||||||
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Market Price
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Dividends Declared per Share
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Market Price
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Dividends Declared per Share
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||||||||||||||||
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High
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Low
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High
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Low
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First Quarter
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$
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45.74
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$
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41.91
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$
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0.25
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$
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44.82
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$
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40.14
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$
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0.23
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Second Quarter
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47.43
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43.54
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0.30
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44.12
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40.20
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0.23
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||||||
Third Quarter
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47.05
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42.58
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0.30
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44.40
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37.33
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0.23
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||||||
Fourth Quarter
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42.23
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34.05
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0.30
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47.00
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41.70
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0.25
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Issuer's Purchases of Equity Securities
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|||||||||||||
Period
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Total
number of
shares (or units)
purchased
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Average
price paid
per share (or unit)
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Total number of
shares (or units) purchased
as part of publicly
announced plans or programs
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Maximum number (or appropriate dollar value) of shares (or units) that may yet be purchased under the plans or programs
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|||||
October 1-31, 2018
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—
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$
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—
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—
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750
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November 1-30, 2018
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—
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—
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—
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750
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December 1-31, 2018
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750
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36.19
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750
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—
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Total
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750
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$
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36.19
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750
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—
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At or For The Year Ended
December 31,
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||||||||||||||||||
(In Thousands, Except per Share Data)
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2018
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2017
(1)
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2016
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2015
(2)
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2014
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||||||||||
Financial Condition Data
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Investments
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$
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926,678
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$
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907,642
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$
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897,679
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$
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855,995
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$
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803,633
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Loans and loans held for sale
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3,030,625
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2,790,542
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2,609,400
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2,501,164
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1,772,610
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|||||
Allowance for loan losses
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(24,712
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)
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(24,171
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)
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(23,116
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)
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(21,166
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)
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(21,116
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)
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|||||
Total assets
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4,297,435
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4,065,398
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3,864,230
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3,709,344
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2,789,853
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|||||
Deposits
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3,464,474
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3,000,491
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2,828,529
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2,726,379
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1,932,097
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|||||
Borrowings
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341,515
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611,498
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599,675
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572,362
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577,002
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|||||
Shareholders’ equity
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435,825
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403,413
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391,547
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363,190
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245,109
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|||||
Operating Data
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||||||||||
Net interest income
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$
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120,393
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$
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115,300
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$
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113,072
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$
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86,452
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$
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76,257
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Provision for credit losses
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|
847
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3,035
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5,258
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1,936
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2,220
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|||||
Non-interest income
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|
38,176
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|
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38,599
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|
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39,621
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|
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27,482
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|
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24,370
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|
|||||
Non-interest expense
|
|
91,945
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|
|
88,510
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|
|
89,896
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|
|
81,139
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|
|
62,397
|
|
|||||
Income before income tax expense
|
|
65,777
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|
|
62,354
|
|
|
57,539
|
|
|
30,859
|
|
|
36,010
|
|
|||||
Income tax expense
|
|
12,706
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|
|
33,878
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|
|
17,472
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|
|
9,907
|
|
|
11,440
|
|
|||||
Net income
|
|
$
|
53,071
|
|
|
$
|
28,476
|
|
|
$
|
40,067
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|
|
$
|
20,952
|
|
|
$
|
24,570
|
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Ratios
|
|
|
|
|
|
|
|
|
|
|
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|||||||||
Return on average assets
|
|
1.28
|
%
|
|
0.71
|
%
|
|
1.04
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%
|
|
0.70
|
%
|
|
0.92
|
%
|
|||||
Return on average equity
|
|
12.92
|
%
|
|
7.00
|
%
|
|
10.47
|
%
|
|
7.54
|
%
|
|
10.37
|
%
|
|||||
Dividend payout ratio
|
|
33.85
|
%
|
|
51.43
|
%
|
|
32.22
|
%
|
|
50.60
|
%
|
|
33.73
|
%
|
|||||
Per common share data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings per share
|
|
$
|
3.40
|
|
|
$
|
1.83
|
|
|
$
|
2.59
|
|
|
$
|
1.73
|
|
|
$
|
2.19
|
|
Diluted earnings per share
|
|
3.39
|
|
|
1.82
|
|
|
2.57
|
|
|
1.73
|
|
|
2.19
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|
|||||
Cash dividends declared per share
|
|
1.15
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|
|
0.94
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|
|
0.83
|
|
|
0.80
|
|
|
0.74
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|
|||||
Book value per share
|
|
27.95
|
|
|
25.99
|
|
|
25.30
|
|
|
23.69
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|
|
22.00
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|||||
Non-GAAP measures
(3)
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|
|
|
|
|
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|
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||||||||||
Adjusted net income
|
|
$
|
53,071
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|
|
$
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42,739
|
|
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$
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40,630
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|
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$
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28,189
|
|
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$
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24,570
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|
Adjusted diluted earnings per share
|
|
3.39
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|
|
2.73
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|
|
2.61
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|
|
2.33
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|
|
2.19
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|
|||||
Adjusted return on average assets
|
|
1.28
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%
|
|
1.07
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%
|
|
1.06
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%
|
|
0.94
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%
|
|
0.92
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%
|
|||||
Adjusted return on average tangible equity
|
|
17.22
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%
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|
14.35
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%
|
|
14.95
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%
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|
13.20
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%
|
|
13.30
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%
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(1)
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In December 2017, the Tax Cuts and Jobs Act of 2017 was enacted, and the Company recognized a $14.3 million income tax charge upon the revaluation of its deferred tax assets and liabilities using the lower federal corporate income tax rate of 21.0%. Refer to Item 7.
"Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Income Tax Expense"
and Note 17 of the consolidated financial statements for further details.
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(2)
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On October 16, 2015, the Company completed its acquisition of SBM Financial, Inc., the parent company of The Bank of Maine. The impact of the acquisition was included within the presented financial data and results as of and for the year ended December 31, 2015.
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(3)
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Refer to Item 7.
"Management's Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures and Reconciliation to GAAP"
for discussion and reconciliations of non-GAAP measures.
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AFS:
|
Available-for-sale
|
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HPFC:
|
Healthcare Professional Funding Corporation, a wholly-owned subsidiary of Camden National Bank
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ALCO:
|
Asset/Liability Committee
|
|
HTM:
|
Held-to-maturity
|
ALL:
|
Allowance for loan losses
|
|
IRS:
|
Internal Revenue Service
|
AOCI:
|
Accumulated other comprehensive income (loss)
|
|
LIBOR:
|
London Interbank Offered Rate
|
ASC:
|
Accounting Standards Codification
|
|
LTIP:
|
Long-Term Performance Share Plan
|
ASU:
|
Accounting Standards Update
|
|
Management ALCO:
|
Management Asset/Liability Committee
|
Bank:
|
Camden National Bank, a wholly-owned subsidiary of Camden National Corporation
|
|
MBS:
|
Mortgage-backed security
|
BOLI:
|
Bank-owned life insurance
|
|
MSPP:
|
Management Stock Purchase Plan
|
Board ALCO:
|
Board of Directors' Asset/Liability Committee
|
|
N/A:
|
Not applicable
|
CCTA:
|
Camden Capital Trust A, an unconsolidated entity formed by Camden National Corporation
|
|
N.M.:
|
Not meaningful
|
CDs:
|
Certificate of deposits
|
|
OCC:
|
Office of the Comptroller of the Currency
|
Company:
|
Camden National Corporation
|
|
OCI:
|
Other comprehensive income (loss)
|
CMO:
|
Collateralized mortgage obligation
|
|
OREO:
|
Other real estate owned
|
DCRP:
|
Defined Contribution Retirement Plan
|
|
OTTI:
|
Other-than-temporary impairment
|
EPS:
|
Earnings per share
|
|
SBM:
|
SBM Financial, Inc., the parent company of The Bank of Maine, that was acquired by Camden National Corporation
|
FASB:
|
Financial Accounting Standards Board
|
|
SERP:
|
Supplemental executive retirement plans
|
FDIC:
|
Federal Deposit Insurance Corporation
|
|
Tax Act:
|
Tax Cuts and Jobs Act of 2017, enacted on December 22, 2017
|
FHLB:
|
Federal Home Loan Bank
|
|
TDR:
|
Troubled-debt restructured loan
|
FHLBB:
|
Federal Home Loan Bank of Boston
|
|
UBCT:
|
Union Bankshares Capital Trust I, an unconsolidated entity formed by Union Bankshares Company that was subsequently acquired by Camden National Corporation
|
FRB:
|
Federal Reserve System Board of Governors
|
|
U.S.:
|
United States of America
|
FRBB:
|
Federal Reserve Bank of Boston
|
|
2003 Plan:
|
2003 Stock Option and Incentive Plan
|
GAAP:
|
Generally accepted accounting principles in the United States
|
|
2012 Plan:
|
2012 Equity and Incentive Plan
|
|
|
For The Year Ended
December 31,
|
||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Adjusted Net Income:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income, as presented
|
|
$
|
53,071
|
|
|
$
|
28,476
|
|
|
$
|
40,067
|
|
|
$
|
20,952
|
|
|
$
|
24,570
|
|
Add: impact of the revaluation of deferred tax assets and liabilities due to the Tax Act
|
|
—
|
|
|
14,263
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Add: merger and acquisition costs and divestiture costs, net of tax
(1)
|
|
—
|
|
|
—
|
|
|
563
|
|
|
7,237
|
|
|
—
|
|
|||||
Adjusted net income
|
|
$
|
53,071
|
|
|
$
|
42,739
|
|
|
$
|
40,630
|
|
|
$
|
28,189
|
|
|
$
|
24,570
|
|
Adjusted Diluted EPS:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted EPS, as presented
|
|
$
|
3.39
|
|
|
$
|
1.82
|
|
|
$
|
2.57
|
|
|
$
|
1.73
|
|
|
$
|
2.19
|
|
Impact of adjustments to arrive at adjusted net income
|
|
—
|
|
|
0.91
|
|
|
0.04
|
|
|
0.60
|
|
|
—
|
|
|||||
Adjusted diluted EPS
|
|
$
|
3.39
|
|
|
$
|
2.73
|
|
|
$
|
2.61
|
|
|
$
|
2.33
|
|
|
$
|
2.19
|
|
Adjusted Return on Average Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets, as presented
|
|
1.28
|
%
|
|
0.71
|
%
|
|
1.04
|
%
|
|
0.70
|
%
|
|
0.92
|
%
|
|||||
Impact of adjustments to arrive at adjusted net income
|
|
—
|
%
|
|
0.36
|
%
|
|
0.02
|
%
|
|
0.24
|
%
|
|
—
|
%
|
|||||
Adjusted return on average assets
|
|
1.28
|
%
|
|
1.07
|
%
|
|
1.06
|
%
|
|
0.94
|
%
|
|
0.92
|
%
|
(1)
|
Reported on a tax-equivalent basis using the corporate federal income tax rate in effect for the respective period.
|
|
|
For The Year Ended
December 31,
|
||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Net income, as presented
|
|
$
|
53,071
|
|
|
$
|
28,476
|
|
|
$
|
40,067
|
|
|
$
|
20,952
|
|
|
$
|
24,570
|
|
Add: impact of the revaluation of deferred tax assets and liabilities due to the Tax Act
|
|
—
|
|
|
14,263
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Add: merger and acquisition costs and divestiture costs, net of tax
(1)
|
|
—
|
|
|
—
|
|
|
563
|
|
|
7,237
|
|
|
—
|
|
|||||
Adjusted net income
|
|
$
|
53,071
|
|
|
$
|
42,739
|
|
|
$
|
40,630
|
|
|
$
|
28,189
|
|
|
$
|
24,570
|
|
Add: amortization of intangible assets, net of tax
(1)
|
|
573
|
|
|
1,176
|
|
|
1,237
|
|
|
849
|
|
|
746
|
|
|||||
Adjusted tangible net income
|
|
$
|
53,644
|
|
|
$
|
43,915
|
|
|
$
|
41,867
|
|
|
$
|
29,038
|
|
|
$
|
25,316
|
|
Average equity, as presented
|
|
$
|
410,755
|
|
|
$
|
406,628
|
|
|
$
|
382,507
|
|
|
$
|
277,716
|
|
|
$
|
236,849
|
|
Less: average goodwill and other intangible assets
|
|
(99,287
|
)
|
|
(100,513
|
)
|
|
(102,711
|
)
|
|
(57,833
|
)
|
|
(48,735
|
)
|
|||||
Average tangible equity
|
|
$
|
311,468
|
|
|
$
|
306,115
|
|
|
$
|
279,796
|
|
|
$
|
219,883
|
|
|
$
|
188,114
|
|
Return on average equity
|
|
12.92
|
%
|
|
7.00
|
%
|
|
10.47
|
%
|
|
7.54
|
%
|
|
10.37
|
%
|
|||||
Adjusted return on average equity
|
|
12.92
|
%
|
|
10.51
|
%
|
|
10.62
|
%
|
|
10.15
|
%
|
|
10.37
|
%
|
|||||
Adjusted return on average tangible equity
|
|
17.22
|
%
|
|
14.35
|
%
|
|
14.96
|
%
|
|
13.21
|
%
|
|
13.46
|
%
|
(1)
|
Reported on a tax-equivalent basis using the corporate federal income tax rate in effect for the respective period.
|
|
|
For The Year Ended
December 31,
|
||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Non-interest expense, as presented
|
|
$
|
91,945
|
|
|
$
|
88,510
|
|
|
$
|
89,896
|
|
|
$
|
81,139
|
|
|
$
|
62,397
|
|
Less: merger and acquisition costs, and divestiture cost
|
|
—
|
|
|
—
|
|
|
(866
|
)
|
|
(10,415
|
)
|
|
—
|
|
|||||
Adjusted non-interest expense
|
|
$
|
91,945
|
|
|
$
|
88,510
|
|
|
$
|
89,030
|
|
|
$
|
70,724
|
|
|
$
|
62,397
|
|
Net interest income, as presented
|
|
$
|
120,393
|
|
|
$
|
115,300
|
|
|
$
|
113,072
|
|
|
$
|
86,452
|
|
|
$
|
76,257
|
|
Add: effect of tax-exempt income
(1)
|
|
1,022
|
|
|
2,105
|
|
|
2,121
|
|
|
1,763
|
|
|
1,157
|
|
|||||
Non-interest income, as presented
|
|
38,176
|
|
|
38,599
|
|
|
39,621
|
|
|
27,482
|
|
|
24,370
|
|
|||||
Less: net gains on sale of securities
|
|
(275
|
)
|
|
(855
|
)
|
|
(51
|
)
|
|
(4
|
)
|
|
(451
|
)
|
|||||
Adjusted net interest income plus non-interest income
|
|
$
|
159,316
|
|
|
$
|
155,149
|
|
|
$
|
154,763
|
|
|
$
|
115,693
|
|
|
$
|
101,333
|
|
GAAP efficiency ratio
|
|
57.98
|
%
|
|
57.51
|
%
|
|
58.87
|
%
|
|
71.22
|
%
|
|
62.01
|
%
|
|||||
Non-GAAP efficiency ratio
|
|
57.71
|
%
|
|
57.05
|
%
|
|
57.53
|
%
|
|
61.13
|
%
|
|
61.58
|
%
|
(1)
|
Reported on a tax-equivalent basis using the corporate federal income tax rate in effect for the respective period.
|
|
|
For The Year Ended
December 31,
|
||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Net interest income, as presented
|
|
$
|
120,393
|
|
|
$
|
115,300
|
|
|
$
|
113,072
|
|
|
$
|
86,452
|
|
|
$
|
76,257
|
|
Effect of tax-exempt income
(1)
|
|
1,022
|
|
|
2,105
|
|
|
2,121
|
|
|
1,763
|
|
|
1,157
|
|
|||||
Net interest income, tax equivalent
|
|
$
|
121,415
|
|
|
$
|
117,405
|
|
|
$
|
115,193
|
|
|
$
|
88,215
|
|
|
$
|
77,414
|
|
(1)
|
Reported on a tax-equivalent basis using the corporate federal income tax rate in effect for the respective period.
|
|
|
December 31,
|
||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Tangible Book Value Per Share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders' equity, as presented
|
|
$
|
435,825
|
|
|
$
|
403,413
|
|
|
$
|
391,547
|
|
|
$
|
363,190
|
|
|
$
|
245,109
|
|
Less: goodwill and other intangible assets
|
|
(98,927
|
)
|
|
(99,652
|
)
|
|
(101,461
|
)
|
|
(104,324
|
)
|
|
(48,171
|
)
|
|||||
Tangible shareholders' equity
|
|
$
|
336,898
|
|
|
$
|
303,761
|
|
|
$
|
290,086
|
|
|
$
|
258,866
|
|
|
$
|
196,938
|
|
Shares outstanding at period end
|
|
15,591,914
|
|
|
15,524,704
|
|
|
15,476,379
|
|
|
15,330,717
|
|
|
11,139,333
|
|
|||||
Tangible book value per share
|
|
$
|
21.61
|
|
|
$
|
19.57
|
|
|
$
|
18.74
|
|
|
$
|
16.89
|
|
|
$
|
17.68
|
|
Book value per share
|
|
$
|
27.95
|
|
|
$
|
25.99
|
|
|
$
|
25.30
|
|
|
$
|
23.69
|
|
|
$
|
22.00
|
|
Tangible Common Equity Ratio:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
|
$
|
4,297,435
|
|
|
$
|
4,065,398
|
|
|
$
|
3,864,230
|
|
|
$
|
3,709,344
|
|
|
$
|
2,789,853
|
|
Less: goodwill and other intangibles
|
|
(98,927
|
)
|
|
(99,652
|
)
|
|
(101,461
|
)
|
|
(104,324
|
)
|
|
(48,171
|
)
|
|||||
Tangible assets
|
|
$
|
4,198,508
|
|
|
$
|
3,965,746
|
|
|
$
|
3,762,769
|
|
|
$
|
3,605,020
|
|
|
$
|
2,741,682
|
|
Common equity ratio
|
|
10.14
|
%
|
|
9.92
|
%
|
|
10.13
|
%
|
|
9.79
|
%
|
|
8.79
|
%
|
|||||
Tangible common equity ratio
|
|
8.02
|
%
|
|
7.66
|
%
|
|
7.71
|
%
|
|
7.18
|
%
|
|
7.18
|
%
|
•
|
Lower income taxes
— Our effective tax rate for 2018 was 19.3%, compared to 54.3% for 2017. Effective January 1, 2018, the federal income tax rate was reduced from 35.0% to 21.0%, and the income tax benefit was $9.2 million for 2018. Our effective tax rate for 2017 was unusually high due to the $14.3 million income tax charge recorded after the Tax Act was enacted.
|
•
|
Low cost deposit growth of 15% —
Our total deposit base grew $464.0 million, or 15%, to $3.5 billion at December 31, 2018, which included checking account growth of $185.9 million, or 14%, and savings and money market growth of $151.8 million, or 15%.
|
•
|
Loan growth of 9%
—
Our loan portfolio grew $243.8 million, or 9%, in 2018 to $3.0 billion at December 31, 2018, led by residential and commercial real estate growth of $134.5 million and $105.5 million, respectively.
|
•
|
Superior asset quality —
Improved asset quality metrics in 2018, including the favorable resolution of two large commercial credit relationships that contributed to a net charge-offs to average loans ratio of 0.01% for 2018, resulted in a provision for credit losses of $847,000 for 2018. Provision for credit losses for 2018 decreased $2.2 million, compared to 2017.
|
|
|
Average Balance, Interest and Yield/Rate Analysis
|
|||||||||||||||||||||||||||||||
|
|
For The Year Ended
December 31,
|
|||||||||||||||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||||||||||||||
|
|
Average Balance
|
|
Interest
|
|
Yield/Rate
|
|
Average Balance
|
|
Interest
|
|
Yield/Rate
|
|
Average Balance
|
|
Interest
|
|
Yield/Rate
|
|||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing deposits in other banks
(1)
|
|
$
|
45,155
|
|
|
$
|
732
|
|
|
1.62
|
%
|
|
$
|
40,611
|
|
|
$
|
429
|
|
|
1.06
|
%
|
|
$
|
46,199
|
|
|
$
|
204
|
|
|
0.44
|
%
|
Securities – taxable
|
|
829,462
|
|
|
19,451
|
|
|
2.35
|
%
|
|
826,749
|
|
|
18,348
|
|
|
2.22
|
%
|
|
796,423
|
|
|
17,362
|
|
|
2.18
|
%
|
||||||
Securities – nontaxable
(2)
|
|
98,128
|
|
|
3,352
|
|
|
3.42
|
%
|
|
101,898
|
|
|
4,253
|
|
|
4.17
|
%
|
|
103,086
|
|
|
4,363
|
|
|
4.23
|
%
|
||||||
Loans
(3)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Residential real estate
|
|
913,593
|
|
|
38,293
|
|
|
4.19
|
%
|
|
838,781
|
|
|
34,517
|
|
|
4.12
|
%
|
|
822,690
|
|
|
34,366
|
|
|
4.18
|
%
|
||||||
Commercial real estate
|
|
1,195,544
|
|
|
53,420
|
|
|
4.47
|
%
|
|
1,120,591
|
|
|
46,080
|
|
|
4.11
|
%
|
|
1,004,169
|
|
|
41,228
|
|
|
4.11
|
%
|
||||||
Commercial
(2)
|
|
354,508
|
|
|
15,956
|
|
|
4.50
|
%
|
|
336,685
|
|
|
14,180
|
|
|
4.21
|
%
|
|
292,709
|
|
|
12,350
|
|
|
4.22
|
%
|
||||||
Municipal
(2)
|
|
20,361
|
|
|
648
|
|
|
3.18
|
%
|
|
19,428
|
|
|
667
|
|
|
3.43
|
%
|
|
19,238
|
|
|
572
|
|
|
2.97
|
%
|
||||||
Consumer and home equity
|
|
343,292
|
|
|
17,424
|
|
|
5.08
|
%
|
|
343,457
|
|
|
15,294
|
|
|
4.45
|
%
|
|
358,098
|
|
|
15,111
|
|
|
4.22
|
%
|
||||||
HPFC
|
|
39,588
|
|
|
3,123
|
|
|
7.89
|
%
|
|
52,031
|
|
|
4,441
|
|
|
8.53
|
%
|
|
70,188
|
|
|
6,191
|
|
|
8.82
|
%
|
||||||
Total loans
|
|
2,866,886
|
|
|
128,864
|
|
|
4.49
|
%
|
|
2,710,973
|
|
|
115,179
|
|
|
4.25
|
%
|
|
2,567,092
|
|
|
109,818
|
|
|
4.28
|
%
|
||||||
Total interest-earning assets
(1)
|
|
3,839,631
|
|
|
152,399
|
|
|
3.97
|
%
|
|
3,680,231
|
|
|
138,209
|
|
|
3.76
|
%
|
|
3,512,800
|
|
|
131,747
|
|
|
3.75
|
%
|
||||||
Cash and due from banks
|
|
45,503
|
|
|
|
|
|
|
|
|
44,678
|
|
|
|
|
|
|
|
|
41,120
|
|
|
|
|
|
|
|
||||||
Other assets
|
|
274,293
|
|
|
|
|
|
|
|
|
287,765
|
|
|
|
|
|
|
|
|
305,440
|
|
|
|
|
|
|
|
||||||
Less: ALL
|
|
(23,959
|
)
|
|
|
|
|
|
(24,068
|
)
|
|
|
|
|
|
(22,663
|
)
|
|
|
|
|
||||||||||||
Total assets
|
|
$
|
4,135,468
|
|
|
|
|
|
|
$
|
3,988,606
|
|
|
|
|
|
|
$
|
3,836,697
|
|
|
|
|
|
|||||||||
LIABILITIES & SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Non-interest checking
|
|
$
|
503,287
|
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
430,706
|
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
386,189
|
|
|
$
|
—
|
|
|
—
|
%
|
Interest checking
|
|
870,125
|
|
|
4,826
|
|
|
0.55
|
%
|
|
750,543
|
|
|
1,541
|
|
|
0.21
|
%
|
|
724,222
|
|
|
921
|
|
|
0.13
|
%
|
||||||
Savings
|
|
485,986
|
|
|
308
|
|
|
0.06
|
%
|
|
492,483
|
|
|
310
|
|
|
0.06
|
%
|
|
461,794
|
|
|
278
|
|
|
0.06
|
%
|
||||||
Money market
|
|
515,590
|
|
|
4,467
|
|
|
0.87
|
%
|
|
480,119
|
|
|
2,475
|
|
|
0.52
|
%
|
|
490,155
|
|
|
2,053
|
|
|
0.42
|
%
|
||||||
Certificates of deposit
|
|
467,631
|
|
|
5,267
|
|
|
1.13
|
%
|
|
466,418
|
|
|
4,124
|
|
|
0.88
|
%
|
|
489,040
|
|
|
3,793
|
|
|
0.78
|
%
|
||||||
Total deposits
|
|
2,842,619
|
|
|
14,868
|
|
|
0.52
|
%
|
|
2,620,269
|
|
|
8,450
|
|
|
0.32
|
%
|
|
2,551,400
|
|
|
7,045
|
|
|
0.28
|
%
|
||||||
Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Brokered deposits
|
|
264,711
|
|
|
5,245
|
|
|
1.98
|
%
|
|
296,261
|
|
|
3,361
|
|
|
1.13
|
%
|
|
231,610
|
|
|
1,588
|
|
|
0.69
|
%
|
||||||
Customer repurchase agreements
|
|
248,743
|
|
|
2,547
|
|
|
1.02
|
%
|
|
232,762
|
|
|
1,070
|
|
|
0.46
|
%
|
|
198,403
|
|
|
555
|
|
|
0.28
|
%
|
||||||
Subordinated debentures
|
|
58,990
|
|
|
3,415
|
|
|
5.79
|
%
|
|
58,834
|
|
|
3,408
|
|
|
5.79
|
%
|
|
58,718
|
|
|
3,415
|
|
|
5.82
|
%
|
||||||
Other borrowings
|
|
249,544
|
|
|
4,909
|
|
|
1.97
|
%
|
|
329,988
|
|
|
4,515
|
|
|
1.37
|
%
|
|
359,281
|
|
|
3,951
|
|
|
1.10
|
%
|
||||||
Total borrowings
|
|
821,988
|
|
|
16,116
|
|
|
1.96
|
%
|
|
917,845
|
|
|
12,354
|
|
|
1.35
|
%
|
|
848,012
|
|
|
9,509
|
|
|
1.12
|
%
|
||||||
Total funding liabilities
|
|
3,664,607
|
|
|
30,984
|
|
|
0.85
|
%
|
|
3,538,114
|
|
|
20,804
|
|
|
0.59
|
%
|
|
3,399,412
|
|
|
16,554
|
|
|
0.49
|
%
|
||||||
Other liabilities
|
|
60,106
|
|
|
|
|
|
|
|
|
43,864
|
|
|
|
|
|
|
|
|
54,778
|
|
|
|
|
|
|
|
||||||
Shareholders’ equity
|
|
410,755
|
|
|
|
|
|
|
406,628
|
|
|
|
|
|
|
382,507
|
|
|
|
|
|
||||||||||||
Total liabilities & shareholders’ equity
|
|
$
|
4,135,468
|
|
|
|
|
|
|
$
|
3,988,606
|
|
|
|
|
|
|
$
|
3,836,697
|
|
|
|
|
|
|||||||||
Net interest income (fully-taxable equivalent)
|
|
|
|
|
121,415
|
|
|
|
|
|
|
|
|
117,405
|
|
|
|
|
|
|
|
|
115,193
|
|
|
|
|
||||||
Less: fully-taxable equivalent adjustment
|
|
|
|
(1,022
|
)
|
|
|
|
|
|
(2,105
|
)
|
|
|
|
|
|
(2,121
|
)
|
|
|
||||||||||||
Net interest income
|
|
|
|
$
|
120,393
|
|
|
|
|
|
|
|
$
|
115,300
|
|
|
|
|
|
|
$
|
113,072
|
|
|
|
||||||||
Net interest rate spread (fully-taxable equivalent)
(1)
|
|
|
|
|
|
3.12
|
%
|
|
|
|
|
|
3.17
|
%
|
|
|
|
|
|
3.26
|
%
|
||||||||||||
Net interest margin (fully-taxable equivalent)
(1)
|
|
|
|
|
|
3.16
|
%
|
|
|
|
|
|
3.19
|
%
|
|
|
|
|
|
3.28
|
%
|
||||||||||||
Net interest margin (fully-taxable equivalent), excluding fair value mark accretion and collection of previously charged-off acquired loans
(1)(4)
|
|
|
|
|
|
3.10
|
%
|
|
|
|
|
|
3.10
|
%
|
|
|
|
|
|
3.11
|
%
|
(1)
|
Balances for 2017 and 2016 were revised to include average interest-bearing deposits in other banks in total average interest-earning assets. Previously, average interest-bearing deposits in other banks was presented in other assets.
|
(2)
|
Reported on a tax-equivalent basis calculated using the corporate federal income tax rate in effect for the period, including certain commercial loans. The corporate federal income tax rate for 2018 was 21.0%, and for 2017 and 2016 was 35.0%.
|
(3)
|
Non-accrual loans and loans held for sale are included in total average loans.
|
(4)
|
Excludes the impact of the fair value mark accretion on loans and CDs generated in purchase accounting and collection of previously charged-off acquired loans for 2018, 2017 and 2016 totaling $2.3 million, $3.2 million and $6.2 million, respectively.
|
|
|
December 31, 2018 vs. 2017
Increase (Decrease) Due to:
|
|
December 31, 2017 vs. 2016
Increase (Decrease) Due to:
|
||||||||||||||||||||
|
|
Volume
|
|
Rate
|
|
Net
|
|
Volume
|
|
Rate
|
|
Net
|
||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing deposits in other banks
|
|
$
|
48
|
|
|
$
|
255
|
|
|
$
|
303
|
|
|
$
|
(25
|
)
|
|
$
|
250
|
|
|
$
|
225
|
|
Securities – taxable
|
|
60
|
|
|
1,043
|
|
|
1,103
|
|
|
661
|
|
|
325
|
|
|
986
|
|
||||||
Securities – nontaxable
|
|
(157
|
)
|
|
(744
|
)
|
|
(901
|
)
|
|
(50
|
)
|
|
(60
|
)
|
|
(110
|
)
|
||||||
Residential real estate
|
|
3,082
|
|
|
694
|
|
|
3,776
|
|
|
673
|
|
|
(522
|
)
|
|
151
|
|
||||||
Commercial real estate
|
|
3,081
|
|
|
4,259
|
|
|
7,340
|
|
|
4,785
|
|
|
67
|
|
|
4,852
|
|
||||||
Commercial
|
|
750
|
|
|
1,026
|
|
|
1,776
|
|
|
1,856
|
|
|
(26
|
)
|
|
1,830
|
|
||||||
Municipal
|
|
32
|
|
|
(51
|
)
|
|
(19
|
)
|
|
6
|
|
|
89
|
|
|
95
|
|
||||||
Consumer and home equity
|
|
(7
|
)
|
|
2,137
|
|
|
2,130
|
|
|
(618
|
)
|
|
801
|
|
|
183
|
|
||||||
HPFC
|
|
(1,061
|
)
|
|
(257
|
)
|
|
(1,318
|
)
|
|
(1,601
|
)
|
|
(149
|
)
|
|
(1,750
|
)
|
||||||
Total interest income
|
|
5,828
|
|
|
8,362
|
|
|
14,190
|
|
|
5,687
|
|
|
775
|
|
|
6,462
|
|
||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest checking
|
|
251
|
|
|
3,034
|
|
|
3,285
|
|
|
34
|
|
|
586
|
|
|
620
|
|
||||||
Savings
|
|
(4
|
)
|
|
2
|
|
|
(2
|
)
|
|
18
|
|
|
14
|
|
|
32
|
|
||||||
Money market
|
|
184
|
|
|
1,808
|
|
|
1,992
|
|
|
(42
|
)
|
|
464
|
|
|
422
|
|
||||||
Certificates of deposit
|
|
11
|
|
|
1,132
|
|
|
1,143
|
|
|
(176
|
)
|
|
507
|
|
|
331
|
|
||||||
Brokered deposits
|
|
(357
|
)
|
|
2,241
|
|
|
1,884
|
|
|
446
|
|
|
1,327
|
|
|
1,773
|
|
||||||
Customer repurchase agreements
|
|
73
|
|
|
1,404
|
|
|
1,477
|
|
|
96
|
|
|
419
|
|
|
515
|
|
||||||
Subordinated debentures
|
|
9
|
|
|
(2
|
)
|
|
7
|
|
|
7
|
|
|
(14
|
)
|
|
(7
|
)
|
||||||
Other borrowings
|
|
(1,102
|
)
|
|
1,496
|
|
|
394
|
|
|
(322
|
)
|
|
886
|
|
|
564
|
|
||||||
Total interest expense
|
|
(935
|
)
|
|
11,115
|
|
|
10,180
|
|
|
61
|
|
|
4,189
|
|
|
4,250
|
|
||||||
Net interest income (fully-taxable equivalent)
|
|
$
|
6,763
|
|
|
$
|
(2,753
|
)
|
|
$
|
4,010
|
|
|
$
|
5,626
|
|
|
$
|
(3,414
|
)
|
|
$
|
2,212
|
|
|
|
Income Statement Location
|
|
For The Year Ended
December 31,
|
||||||||||
|
|
|
2018
|
|
2017
|
|
2016
|
|||||||
Loan fees (cost)
|
|
Interest income
|
|
$
|
(317
|
)
|
|
$
|
(209
|
)
|
|
$
|
(394
|
)
|
Net fair value mark accretion from purchase accounting
|
|
Interest income and Interest expense
|
|
1,908
|
|
|
2,837
|
|
|
5,082
|
|
|||
Recoveries on previously charged-off acquired loans
|
|
Interest income
|
|
348
|
|
|
320
|
|
|
1,078
|
|
|||
Total
|
|
|
|
$
|
1,939
|
|
|
$
|
2,948
|
|
|
$
|
5,766
|
|
|
|
For the Year Ended
December 31,
|
|
Change from
|
|||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018 to 2017
|
|||||||||||
|
|
|
|
|
$
|
|
%
|
||||||||||||
Debit card income
|
|
$
|
9,067
|
|
|
$
|
8,079
|
|
|
$
|
7,578
|
|
|
$
|
988
|
|
|
12
|
%
|
Service charges on deposit accounts
|
|
7,663
|
|
|
7,529
|
|
|
7,210
|
|
|
134
|
|
|
2
|
%
|
||||
Mortgage banking income, net
|
|
5,914
|
|
|
7,363
|
|
|
6,258
|
|
|
(1,449
|
)
|
|
(20
|
)%
|
||||
Income from fiduciary services
|
|
5,376
|
|
|
5,108
|
|
|
4,960
|
|
|
268
|
|
|
5
|
%
|
||||
Brokerage and insurance commissions
|
|
2,615
|
|
|
2,147
|
|
|
2,074
|
|
|
468
|
|
|
22
|
%
|
||||
Bank-owned life insurance income
|
|
2,430
|
|
|
2,370
|
|
|
2,594
|
|
|
60
|
|
|
3
|
%
|
||||
Other service charges and fees
|
|
2,080
|
|
|
2,029
|
|
|
1,962
|
|
|
51
|
|
|
3
|
%
|
||||
Customer loan swap fees
|
|
956
|
|
|
1,574
|
|
|
2,104
|
|
|
(618
|
)
|
|
(39
|
)%
|
||||
Net gain on sale of securities
|
|
275
|
|
|
855
|
|
|
51
|
|
|
(580
|
)
|
|
(68
|
)%
|
||||
Other income
|
|
1,800
|
|
|
1,545
|
|
|
4,830
|
|
|
255
|
|
|
17
|
%
|
||||
Total non-interest income
|
|
$
|
38,176
|
|
|
$
|
38,599
|
|
|
$
|
39,621
|
|
|
$
|
(423
|
)
|
|
(1
|
)%
|
Non-interest income as a percentage of total revenues
(1)
|
|
24
|
%
|
|
25
|
%
|
|
26
|
%
|
|
|
|
|
(1)
|
Revenue is defined as the sum of net interest income and non-interest income.
|
|
|
For The Year Ended
December 31,
|
|
Change from
|
|||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018 to 2017
|
|||||||||||
|
|
|
|
|
$
|
|
%
|
||||||||||||
Salaries and employee benefits expense
|
|
$
|
51,513
|
|
|
$
|
49,109
|
|
|
$
|
47,254
|
|
|
$
|
2,404
|
|
|
5
|
%
|
Furniture, equipment and data processing costs
|
|
10,359
|
|
|
9,894
|
|
|
9,557
|
|
|
465
|
|
|
5
|
%
|
||||
Net occupancy costs
|
|
6,876
|
|
|
6,884
|
|
|
7,088
|
|
|
(8
|
)
|
|
—
|
%
|
||||
Consulting and professional fees
|
|
3,752
|
|
|
3,118
|
|
|
3,234
|
|
|
634
|
|
|
20
|
%
|
||||
Debit card expense
|
|
3,180
|
|
|
2,755
|
|
|
2,584
|
|
|
425
|
|
|
15
|
%
|
||||
Regulatory assessments
|
|
1,937
|
|
|
2,166
|
|
|
2,777
|
|
|
(229
|
)
|
|
(11
|
)%
|
||||
OREO and collection costs, net
|
|
935
|
|
|
971
|
|
|
3,128
|
|
|
(36
|
)
|
|
(4
|
)%
|
||||
Amortization of intangible assets
|
|
725
|
|
|
1,809
|
|
|
1,903
|
|
|
(1,084
|
)
|
|
(60
|
)%
|
||||
Merger and acquisition costs
|
|
—
|
|
|
—
|
|
|
866
|
|
|
—
|
|
|
—
|
%
|
||||
Other expenses
|
|
12,668
|
|
|
11,804
|
|
|
11,505
|
|
|
864
|
|
|
7
|
%
|
||||
Total non-interest expense
|
|
$
|
91,945
|
|
|
$
|
88,510
|
|
|
$
|
89,896
|
|
|
$
|
3,435
|
|
|
4
|
%
|
Efficiency ratio (GAAP)
|
|
57.98
|
%
|
|
57.51
|
%
|
|
58.87
|
%
|
|
|
|
|
||||||
Efficiency ratio (non-GAAP)
|
|
57.71
|
%
|
|
57.05
|
%
|
|
57.53
|
%
|
|
|
|
|
|
|
December 31,
|
|||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
|
Carrying Value
|
|
Percent of Total Investments
|
|
Carrying Value
|
|
Percent of Total Investments
|
|
Carrying Value
|
|
Percent of Total Investments
|
|||||||||
AFS Investments (carried at fair value):
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Obligations of states and political subdivisions
(1)
|
|
$
|
93,752
|
|
|
10
|
%
|
|
$
|
7,335
|
|
|
1
|
%
|
|
$
|
9,001
|
|
|
1
|
%
|
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
|
|
453,672
|
|
|
49
|
%
|
|
503,302
|
|
|
55
|
%
|
|
480,622
|
|
|
53
|
%
|
|||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
|
|
342,894
|
|
|
37
|
%
|
|
272,799
|
|
|
30
|
%
|
|
283,890
|
|
|
32
|
%
|
|||
Subordinated corporate bonds
|
|
20,374
|
|
|
2
|
%
|
|
5,657
|
|
|
1
|
%
|
|
5,613
|
|
|
1
|
%
|
|||
Equity securities - bank stock
(2)
|
|
—
|
|
|
—
|
%
|
|
806
|
|
|
—
|
%
|
|
741
|
|
|
—
|
%
|
|||
Total AFS investments
|
|
910,692
|
|
|
98
|
%
|
|
789,899
|
|
|
87
|
%
|
|
779,867
|
|
|
87
|
%
|
|||
HTM Investments (carried at amortized cost):
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Obligations of states and political subdivisions
(1)
|
|
1,307
|
|
|
—
|
%
|
|
94,073
|
|
|
10
|
%
|
|
94,609
|
|
|
10
|
%
|
|||
Total HTM investments
|
|
1,307
|
|
|
—
|
%
|
|
94,073
|
|
|
10
|
%
|
|
94,609
|
|
|
10
|
%
|
|||
Other Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Equity securities - bank stock
(2)
(carried at fair value)
|
|
746
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
FHLBB stock (carried at cost)
(3)
|
|
8,559
|
|
|
1
|
%
|
|
18,296
|
|
|
2
|
%
|
|
17,829
|
|
|
2
|
%
|
|||
FRB stock (carried at cost)
|
|
5,374
|
|
|
1
|
%
|
|
5,374
|
|
|
1
|
%
|
|
5,374
|
|
|
1
|
%
|
|||
Total other investments
|
|
14,679
|
|
|
2
|
%
|
|
23,670
|
|
|
3
|
%
|
|
23,203
|
|
|
3
|
%
|
|||
Total
|
|
$
|
926,678
|
|
|
100
|
%
|
|
$
|
907,642
|
|
|
100
|
%
|
|
$
|
897,679
|
|
|
100
|
%
|
(1)
|
Upon adoption of ASU 2017-12, effective as of January 1, 2018, re-designated $92.0 million of qualifying HTM investments to AFS.
|
(2)
|
Upon adoption of ASU 2016-01, effective as of January 1, 2018, equity investments with a readily determinable fair value are no longer designated and accounted for as AFS, instead were presented within other investments at fair value.
|
(3)
|
The decrease in FHLBB stock of $9.7 million since December 31, 2017 to $8.6 million at December 31, 2018 was driven by the decrease FHLBB overnight borrowings and advances of $272.2 million between periods to $35.0 million at December 31, 2018.
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||||||||||
|
|
Due in
1 year or less
|
|
Due in
1 – 5 years
|
|
Due in
5 – 10 years
|
|
Due in
over 10 years
|
|
Book Value
|
|
Book Value
|
|
Book Value
|
||||||||||||||
Debt investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Obligations of states and political subdivisions
|
|
$
|
7,008
|
|
|
$
|
2,094
|
|
|
$
|
21,352
|
|
|
$
|
65,283
|
|
|
$
|
95,737
|
|
|
$
|
101,305
|
|
|
$
|
103,457
|
|
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
|
|
10,038
|
|
|
39,565
|
|
|
147,561
|
|
|
269,449
|
|
|
466,613
|
|
|
510,176
|
|
|
485,222
|
|
|||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
|
|
—
|
|
|
23,309
|
|
|
62,366
|
|
|
266,283
|
|
|
351,958
|
|
|
279,575
|
|
|
289,046
|
|
|||||||
Subordinated corporate bonds
|
|
—
|
|
|
3,096
|
|
|
17,302
|
|
|
—
|
|
|
20,398
|
|
|
5,484
|
|
|
5,481
|
|
|||||||
Total debt investments
|
|
$
|
17,046
|
|
|
$
|
68,064
|
|
|
$
|
248,581
|
|
|
$
|
601,015
|
|
|
$
|
934,706
|
|
|
$
|
896,540
|
|
|
$
|
883,206
|
|
Weighted-average yield on debt securities
|
|
2.24
|
%
|
|
2.24
|
%
|
|
2.55
|
%
|
|
2.59
|
%
|
|
2.55
|
%
|
|
2.36
|
%
|
|
2.33
|
%
|
|||||||
Equity investments
(1)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Bank stock
|
|
|
|
|
|
|
|
|
|
$
|
554
|
|
|
$
|
554
|
|
|
$
|
632
|
|
||||||||
FHLBB stock
|
|
|
|
|
|
|
|
|
|
8,559
|
|
|
18,296
|
|
|
17,829
|
|
|||||||||||
FRB stock
|
|
|
|
|
|
|
|
|
|
5,374
|
|
|
5,374
|
|
|
5,374
|
|
|||||||||||
Total equity investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
14,487
|
|
|
$
|
24,224
|
|
|
$
|
23,835
|
|
(1)
|
There is no scheduled maturity date on equity investments.
|
|
|
December 31,
|
|||||||||||||||||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||||||||
Residential real estate
|
|
$
|
992,866
|
|
|
33
|
%
|
|
$
|
858,369
|
|
|
31
|
%
|
|
$
|
802,494
|
|
|
31
|
%
|
|
$
|
820,617
|
|
|
33
|
%
|
|
$
|
585,468
|
|
|
33
|
%
|
Commercial real estate
|
|
1,269,533
|
|
|
42
|
%
|
|
1,164,023
|
|
|
42
|
%
|
|
1,050,780
|
|
|
41
|
%
|
|
927,951
|
|
|
37
|
%
|
|
640,661
|
|
|
36
|
%
|
|||||
Commercial
|
|
381,780
|
|
|
13
|
%
|
|
373,400
|
|
|
13
|
%
|
|
333,639
|
|
|
13
|
%
|
|
297,721
|
|
|
12
|
%
|
|
257,515
|
|
|
15
|
%
|
|||||
Consumer and home equity
|
|
348,387
|
|
|
11
|
%
|
|
341,527
|
|
|
12
|
%
|
|
347,239
|
|
|
13
|
%
|
|
366,587
|
|
|
15
|
%
|
|
288,966
|
|
|
16
|
%
|
|||||
HPFC
|
|
33,656
|
|
|
1
|
%
|
|
45,120
|
|
|
2
|
%
|
|
60,412
|
|
|
2
|
%
|
|
77,330
|
|
|
3
|
%
|
|
—
|
|
|
—
|
%
|
|||||
Total loans
|
|
$
|
3,026,222
|
|
|
100
|
%
|
|
$
|
2,782,439
|
|
|
100
|
%
|
|
$
|
2,594,564
|
|
|
100
|
%
|
|
$
|
2,490,206
|
|
|
100
|
%
|
|
$
|
1,772,610
|
|
|
100
|
%
|
Loan portfolio mix:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Retail
|
|
1,341,253
|
|
|
44
|
%
|
|
1,199,896
|
|
|
43
|
%
|
|
1,149,733
|
|
|
44
|
%
|
|
1,187,204
|
|
|
48
|
%
|
|
874,434
|
|
|
49
|
%
|
|||||
Commercial
|
|
1,684,969
|
|
|
56
|
%
|
|
1,582,543
|
|
|
57
|
%
|
|
1,444,831
|
|
|
56
|
%
|
|
1,303,002
|
|
|
52
|
%
|
|
898,176
|
|
|
51
|
%
|
|
|
December 31,
|
||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Non-accrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Residential real estate loans
|
|
$
|
5,492
|
|
|
$
|
4,979
|
|
|
$
|
3,945
|
|
|
$
|
7,253
|
|
|
$
|
6,056
|
|
Commercial real estate
|
|
1,380
|
|
|
5,642
|
|
|
12,849
|
|
|
4,529
|
|
|
7,043
|
|
|||||
Commercial loans
|
|
1,279
|
|
|
2,000
|
|
|
2,088
|
|
|
4,489
|
|
|
1,529
|
|
|||||
Consumer and home equity loans
|
|
1,861
|
|
|
1,650
|
|
|
1,624
|
|
|
2,051
|
|
|
2,011
|
|
|||||
HPFC
|
|
518
|
|
|
1,043
|
|
|
207
|
|
|
—
|
|
|
—
|
|
|||||
Non-accrual loans
|
|
10,530
|
|
|
15,314
|
|
|
20,713
|
|
|
18,322
|
|
|
16,639
|
|
|||||
Accruing loans past due 90 days
|
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Accruing TDRs (not included above)
|
|
3,893
|
|
|
5,012
|
|
|
4,338
|
|
|
4,861
|
|
|
4,539
|
|
|||||
Total non-performing loans
|
|
14,437
|
|
|
20,326
|
|
|
25,051
|
|
|
23,183
|
|
|
21,178
|
|
|||||
Other real estate owned
|
|
130
|
|
|
130
|
|
|
922
|
|
|
1,304
|
|
|
1,587
|
|
|||||
Total non-performing assets
|
|
$
|
14,567
|
|
|
$
|
20,456
|
|
|
$
|
25,973
|
|
|
$
|
24,487
|
|
|
$
|
22,765
|
|
Non-accrual loans to total loans
|
|
0.35
|
%
|
|
0.55
|
%
|
|
0.80
|
%
|
|
0.74
|
%
|
|
0.94
|
%
|
|||||
Non-performing loans to total loans
|
|
0.48
|
%
|
|
0.73
|
%
|
|
0.97
|
%
|
|
0.93
|
%
|
|
1.19
|
%
|
|||||
Allowance for loan losses to non-performing loans
|
|
171.17
|
%
|
|
118.92
|
%
|
|
92.28
|
%
|
|
91.30
|
%
|
|
99.71
|
%
|
|||||
Non-performing assets to total assets
|
|
0.34
|
%
|
|
0.50
|
%
|
|
0.67
|
%
|
|
0.66
|
%
|
|
0.82
|
%
|
|||||
Allowance for loan losses to non-performing assets
|
|
169.64
|
%
|
|
118.16
|
%
|
|
89.00
|
%
|
|
86.44
|
%
|
|
92.76
|
%
|
•
|
Commercial real estate non-accrual loans at December 31, 2018 decreased $4.3 million since December 31, 2017, primarily due to the favorable resolution of two credit relationships that had a recorded investment balance at December 31, 2017 of $5.1 million.
|
•
|
Commercial non-accrual loans at December 31, 2018 decreased $721,000 since December 31, 2017, primarily due the favorable resolution of one credit relationship, designated as a TDR, that had a recorded investment balance at December 31, 2017 of $1.4 million.
|
•
|
HPFC non-accrual loans at December 31, 2018 decreased $525,000 since December 31, 2017, primarily due to the resolution of one credit relationship with a recorded investment balance at December 31, 2017 of $497,000.
|
•
|
Partially offsetting the net decreases above, was an increase in residential real estate loans and consumer and home equity loans at December 31, 2018 of $513,000 and $211,000, respectively, since December 31, 2017.
|
|
|
For The Year Ended
December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Foregone interest income
|
|
$
|
600
|
|
|
$
|
843
|
|
|
$
|
888
|
|
Interest income recognized on non-performing loans and performing TDRs
|
|
193
|
|
|
215
|
|
|
182
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Loans 30 – 89 days past due:
|
|
|
|
|
|
|
||
Residential real estate loans
|
|
$
|
4,833
|
|
|
$
|
5,277
|
|
Commercial real estate loans
|
|
2,130
|
|
|
1,135
|
|
||
Commercial loans
|
|
169
|
|
|
518
|
|
||
Consumer and home equity loans
|
|
1,467
|
|
|
1,197
|
|
||
HPFC
|
|
183
|
|
|
887
|
|
||
Total loans 30 – 89 days past due
|
|
$
|
8,782
|
|
|
$
|
9,014
|
|
Loans 30 – 89 days past due to total loans
|
|
0.29
|
%
|
|
0.32
|
%
|
|
|
At or For the Year Ended
December 31,
|
||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
ALL at the beginning of period
|
|
$
|
24,171
|
|
|
$
|
23,116
|
|
|
$
|
21,166
|
|
|
$
|
21,116
|
|
|
$
|
21,590
|
|
Provision for loan losses
|
|
845
|
|
|
3,026
|
|
|
5,269
|
|
|
1,938
|
|
|
2,224
|
|
|||||
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Residential real estate
|
|
173
|
|
|
482
|
|
|
356
|
|
|
801
|
|
|
785
|
|
|||||
Commercial real estate
|
|
512
|
|
|
124
|
|
|
315
|
|
|
481
|
|
|
361
|
|
|||||
Commercial
|
|
736
|
|
|
1,014
|
|
|
2,218
|
|
|
655
|
|
|
1,544
|
|
|||||
Consumer and home equity
|
|
572
|
|
|
558
|
|
|
409
|
|
|
679
|
|
|
754
|
|
|||||
HPFC
|
|
255
|
|
|
290
|
|
|
507
|
|
|
—
|
|
|
—
|
|
|||||
Total loan charge-offs
|
|
2,248
|
|
|
2,468
|
|
|
3,805
|
|
|
2,616
|
|
|
3,444
|
|
|||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential real estate
|
|
90
|
|
|
30
|
|
|
95
|
|
|
55
|
|
|
165
|
|
|||||
Commercial real estate
|
|
28
|
|
|
141
|
|
|
50
|
|
|
74
|
|
|
135
|
|
|||||
Commercial
|
|
1,770
|
|
|
301
|
|
|
332
|
|
|
389
|
|
|
395
|
|
|||||
Consumer and home equity
|
|
55
|
|
|
19
|
|
|
9
|
|
|
210
|
|
|
51
|
|
|||||
HPFC
|
|
1
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total loan recoveries
|
|
1,944
|
|
|
497
|
|
|
486
|
|
|
728
|
|
|
746
|
|
|||||
Net charge-offs
|
|
304
|
|
|
1,971
|
|
|
3,319
|
|
|
1,888
|
|
|
2,698
|
|
|||||
ALL at the end of the period
|
|
$
|
24,712
|
|
|
$
|
24,171
|
|
|
$
|
23,116
|
|
|
$
|
21,166
|
|
|
$
|
21,116
|
|
Components of allowance for credit losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
ALL
|
|
$
|
24,712
|
|
|
$
|
24,171
|
|
|
$
|
23,116
|
|
|
$
|
21,166
|
|
|
$
|
21,116
|
|
Liability for unfunded credit commitments
|
|
22
|
|
|
20
|
|
|
11
|
|
|
22
|
|
|
17
|
|
|||||
Balance of allowance for credit losses at end of the period
|
|
$
|
24,734
|
|
|
$
|
24,191
|
|
|
$
|
23,127
|
|
|
$
|
21,188
|
|
|
$
|
21,133
|
|
Net charge-offs to average loans outstanding
|
|
0.01
|
%
|
|
0.07
|
%
|
|
0.13
|
%
|
|
0.10
|
%
|
|
0.16
|
%
|
|||||
Provision for loan losses to average loans outstanding
|
|
0.03
|
%
|
|
0.11
|
%
|
|
0.21
|
%
|
|
0.10
|
%
|
|
0.13
|
%
|
|||||
ALL to total loans
|
|
0.82
|
%
|
|
0.87
|
%
|
|
0.89
|
%
|
|
0.85
|
%
|
|
1.19
|
%
|
|||||
ALL to net charge-offs
|
|
8,128.95
|
%
|
|
1,226.33
|
%
|
|
696.47
|
%
|
|
1,121.08
|
%
|
|
782.65
|
%
|
|
|
December 31,
|
|||||||||||||||||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||||||||
|
|
ALL
Amount
|
|
Percent of Loans in Each Category to Total Loans
|
|
ALL
Amount
|
|
Percent of Loans in Each Category to Total Loans
|
|
ALL
Amount
|
|
Percent of Loans in Each Category to Total Loans
|
|
ALL
Amount
|
|
Percent of Loans in Each Category to Total Loans
|
|
ALL
Amount
|
|
Percent of Loans in Each Category to Total Loans
|
|||||||||||||||
Residential real estate loans
|
|
$
|
6,071
|
|
|
33
|
%
|
|
$
|
5,086
|
|
|
31
|
%
|
|
$
|
4,160
|
|
|
31
|
%
|
|
$
|
4,545
|
|
|
33
|
%
|
|
$
|
4,899
|
|
|
33
|
%
|
Commercial real estate loans
|
|
11,654
|
|
|
42
|
%
|
|
11,863
|
|
|
42
|
%
|
|
12,154
|
|
|
41
|
%
|
|
10,432
|
|
|
37
|
%
|
|
7,951
|
|
|
36
|
%
|
|||||
Commercial loans
|
|
3,620
|
|
|
13
|
%
|
|
4,171
|
|
|
13
|
%
|
|
3,755
|
|
|
13
|
%
|
|
3,241
|
|
|
12
|
%
|
|
3,354
|
|
|
15
|
%
|
|||||
Consumer and home equity loans
|
|
3,030
|
|
|
11
|
%
|
|
2,600
|
|
|
12
|
%
|
|
2,375
|
|
|
13
|
%
|
|
2,924
|
|
|
15
|
%
|
|
2,528
|
|
|
16
|
%
|
|||||
HPFC
|
|
337
|
|
|
1
|
%
|
|
451
|
|
|
2
|
%
|
|
672
|
|
|
2
|
%
|
|
24
|
|
|
3
|
%
|
|
—
|
|
|
—
|
%
|
|||||
Unallocated
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
2,384
|
|
|
—
|
%
|
|||||
|
|
$
|
24,712
|
|
|
100
|
%
|
|
$
|
24,171
|
|
|
100
|
%
|
|
$
|
23,116
|
|
|
100
|
%
|
|
$
|
21,166
|
|
|
100
|
%
|
|
$
|
21,116
|
|
|
100
|
%
|
•
|
Checking account growth at December 31, 2018 of $185.9 million, or 14%, since December 31, 2017, of which we estimate $75.0 million of interest checking balances were temporary funds that we anticipate being fully withdrawn by March 31, 2019.
|
•
|
Brokered deposits growth at December 31, 2018 of $157.3 million, or 76%, since December 31, 2017 as we actively manage funding costs in consideration of our overall asset/liability management strategies.
|
•
|
Savings and money market account growth at December 31, 2018 of $151.8 million, or 15%, since December 31, 2017.
|
•
|
Partially offset by a decrease in CDs at December 31, 2018 of $31.1 million, or 7%, since December 31, 2017.
|
|
|
For the Year Ended
December 31,
|
|||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
|
Average
Balance
|
|
Average
Rate Paid
|
|
Average
Balance
|
|
Average
Rate Paid
|
|
Average
Balance
|
|
Average
Rate Paid
|
|||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Non-interest checking
|
|
$
|
503,287
|
|
|
—
|
%
|
|
$
|
430,706
|
|
|
—
|
%
|
|
$
|
386,189
|
|
|
—
|
%
|
Interest checking
|
|
870,125
|
|
|
0.55
|
%
|
|
750,543
|
|
|
0.21
|
%
|
|
724,222
|
|
|
0.13
|
%
|
|||
Savings
|
|
485,986
|
|
|
0.06
|
%
|
|
492,483
|
|
|
0.06
|
%
|
|
461,794
|
|
|
0.06
|
%
|
|||
Money market
|
|
515,590
|
|
|
0.87
|
%
|
|
480,119
|
|
|
0.52
|
%
|
|
490,155
|
|
|
0.42
|
%
|
|||
Total low-cost deposits
|
|
2,374,988
|
|
|
0.40
|
%
|
|
2,153,851
|
|
|
0.20
|
%
|
|
2,062,360
|
|
|
0.16
|
%
|
|||
CDs
|
|
467,631
|
|
|
1.13
|
%
|
|
466,418
|
|
|
0.88
|
%
|
|
489,040
|
|
|
0.78
|
%
|
|||
Total deposits
|
|
2,842,619
|
|
|
0.52
|
%
|
|
2,620,269
|
|
|
0.32
|
%
|
|
2,551,400
|
|
|
0.28
|
%
|
|||
Brokered deposits
|
|
264,711
|
|
|
1.98
|
%
|
|
296,261
|
|
|
1.13
|
%
|
|
231,610
|
|
|
0.69
|
%
|
|||
Total deposits, including brokered deposits
|
|
$
|
3,107,330
|
|
|
0.65
|
%
|
|
$
|
2,916,530
|
|
|
0.40
|
%
|
|
$
|
2,783,010
|
|
|
0.31
|
%
|
•
|
Short-term borrowings include, but are not limited to, FHLBB and correspondent bank overnight borrowings, FHLBB advances with maturity within one year of origination, and customer repurchase agreements.
|
•
|
Long-term borrowings include, but are not limited to, FHLBB advances with maturity greater than one year, wholesale repurchase agreements, and subordinated debentures.
|
|
December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
FHLBB and correspondent bank overnight borrowings:
|
|
|
|
|
|
||||||
Balance outstanding at end of year
|
$
|
—
|
|
|
$
|
47,150
|
|
|
$
|
89,450
|
|
Average daily balance outstanding
|
60,836
|
|
|
73,487
|
|
|
36,492
|
|
|||
Maximum balance outstanding at any month end
|
161,350
|
|
|
135,550
|
|
|
157,197
|
|
|||
Weighted average interest rate for the year
|
2.06
|
%
|
|
1.19
|
%
|
|
0.57
|
%
|
|||
Weighted average interest rate at end of year
|
—
|
%
|
|
1.59
|
%
|
|
0.80
|
%
|
|||
FHLBB advances (less than one year):
|
|
|
|
|
|
||||||
Balance outstanding at end of year
|
$
|
25,000
|
|
|
$
|
250,000
|
|
|
$
|
190,000
|
|
Average daily balance outstanding
|
177,905
|
|
|
233,305
|
|
|
258,713
|
|
|||
Maximum balance outstanding at any month end
|
315,000
|
|
|
330,000
|
|
|
370,000
|
|
|||
Weighted average interest rate for the year
|
1.90
|
%
|
|
1.23
|
%
|
|
0.71
|
%
|
|||
Weighted average interest rate at end of year
|
2.71
|
%
|
|
1.53
|
%
|
|
0.76
|
%
|
|||
Customer repurchase agreements:
|
|
|
|
|
|
||||||
Balance outstanding at end of year
|
$
|
245,868
|
|
|
$
|
244,646
|
|
|
$
|
225,605
|
|
Average daily balance outstanding
|
248,743
|
|
|
232,762
|
|
|
198,403
|
|
|||
Maximum balance outstanding at any month end
|
278,787
|
|
|
265,627
|
|
|
239,862
|
|
|||
Weighted average interest rate for the year
|
1.02
|
%
|
|
0.46
|
%
|
|
0.28
|
%
|
|||
Weighted average interest rate at end of year
|
1.30
|
%
|
|
0.56
|
%
|
|
0.31
|
%
|
|
|
December 31,
|
|||||||
|
|
2018
|
|
2017
|
|
2016
|
|||
Return on average assets
|
|
1.28
|
%
|
|
0.71
|
%
|
|
1.04
|
%
|
Adjusted return on average assets (non-GAAP)
|
|
1.28
|
%
|
|
1.07
|
%
|
|
1.06
|
%
|
Return on average equity
|
|
12.92
|
%
|
|
7.00
|
%
|
|
10.47
|
%
|
Adjusted return on average equity (non-GAAP)
|
|
12.92
|
%
|
|
10.51
|
%
|
|
10.62
|
%
|
Average equity to average assets
|
|
9.93
|
%
|
|
10.19
|
%
|
|
9.97
|
%
|
Dividend payout ratio
|
|
33.85
|
%
|
|
51.43
|
%
|
|
32.22
|
%
|
Time remaining until maturity:
|
|
December 31,
2018
|
||
Less than 3 months
|
|
$
|
46,893
|
|
3 months through 6 months
|
|
38,386
|
|
|
6 months through 12 months
|
|
48,191
|
|
|
Over 12 months
|
|
92,939
|
|
|
Total
|
|
$
|
226,409
|
|
|
|
December 31, 2018
|
|||||||||||||||||
|
|
< 1 Year
|
|
1 - 5 Years
|
|
More than
5 Years
|
|
Total
|
|
Percent of Total Loans
|
|||||||||
Maturity Distribution:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Fixed Rate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Residential real estate
|
|
$
|
164
|
|
|
$
|
10,582
|
|
|
$
|
602,791
|
|
|
$
|
613,537
|
|
|
20
|
%
|
Commercial real estate
|
|
27,072
|
|
|
97,221
|
|
|
145,363
|
|
|
269,656
|
|
|
9
|
%
|
||||
Commercial
|
|
3,677
|
|
|
70,154
|
|
|
85,585
|
|
|
159,416
|
|
|
5
|
%
|
||||
Consumer and home equity
|
|
1,983
|
|
|
14,967
|
|
|
258,890
|
|
|
275,840
|
|
|
9
|
%
|
||||
Total fixed rate
|
|
32,896
|
|
|
192,924
|
|
|
1,092,629
|
|
|
1,318,449
|
|
|
44
|
%
|
||||
Variable Rate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential real estate
|
|
2,427
|
|
|
1,381
|
|
|
375,521
|
|
|
379,329
|
|
|
13
|
%
|
||||
Commercial real estate
|
|
16,184
|
|
|
106,048
|
|
|
877,648
|
|
|
999,880
|
|
|
33
|
%
|
||||
Commercial
|
|
70,343
|
|
|
89,363
|
|
|
96,313
|
|
|
256,019
|
|
|
8
|
%
|
||||
Consumer and home equity
|
|
50
|
|
|
18,467
|
|
|
54,028
|
|
|
72,545
|
|
|
2
|
%
|
||||
Total variable rate
|
|
89,004
|
|
|
215,259
|
|
|
1,403,510
|
|
|
1,707,773
|
|
|
56
|
%
|
||||
Total loans
|
|
$
|
121,900
|
|
|
$
|
408,183
|
|
|
$
|
2,496,139
|
|
|
$
|
3,026,222
|
|
|
100
|
%
|
|
|
Total Amount Committed
|
|
Commitment Expires in:
|
||||||||||||||||
Off-Balance Sheet Financial Instruments
|
|
|
< 1 Year
|
|
1 – 3 Years
|
|
3 – 5 Years
|
|
> 5 Years
|
|||||||||||
Home equity line of credit commitments
|
|
$
|
548,784
|
|
|
$
|
206,182
|
|
|
$
|
41,332
|
|
|
$
|
9,764
|
|
|
$
|
291,506
|
|
Commercial commitment letters
|
|
67,235
|
|
|
67,235
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Residential loan origination
|
|
36,109
|
|
|
36,109
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Letters of credit
|
|
3,063
|
|
|
3,063
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other commitments to extend credit
|
|
2,447
|
|
|
2,447
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Customer loan swaps - notional value
|
|
833,030
|
|
|
—
|
|
|
81,282
|
|
|
106,780
|
|
|
644,968
|
|
|||||
Junior subordinated debt interest rate swaps - notional value
|
|
43,000
|
|
|
—
|
|
|
10,000
|
|
|
—
|
|
|
33,000
|
|
|||||
FHLBB advance interest rate swaps - notional value
|
|
25,000
|
|
|
25,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Fixed-rate mortgage interest rate lock commitments -notional value
|
|
12,077
|
|
|
12,077
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Forward delivery commitments - notional value
|
|
4,315
|
|
|
4,315
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
1,575,060
|
|
|
$
|
356,428
|
|
|
$
|
132,614
|
|
|
$
|
116,544
|
|
|
$
|
969,474
|
|
|
|
Total Amount Committed
|
|
Payments Due Per Period
|
||||||||||||||||
Contractual obligations and commitments
|
|
|
< 1 Year
|
|
1 – 3 Years
|
|
3 – 5 Years
|
|
> 5 Years
|
|||||||||||
Operating leases
|
|
$
|
5,237
|
|
|
$
|
1,420
|
|
|
$
|
1,667
|
|
|
$
|
973
|
|
|
$
|
1,177
|
|
Capital leases
|
|
2,500
|
|
|
174
|
|
|
361
|
|
|
368
|
|
|
1,597
|
|
|||||
FHLBB advances
|
|
35,000
|
|
|
25,000
|
|
|
10,000
|
|
|
—
|
|
|
—
|
|
|||||
Retail repurchase agreements
|
|
245,868
|
|
|
245,868
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Junior subordinated debentures
|
|
44,433
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44,433
|
|
|||||
Subordinated debentures
|
|
14,634
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,634
|
|
|||||
Other contractual obligations
|
|
2,493
|
|
|
2,493
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
350,165
|
|
|
$
|
274,955
|
|
|
$
|
12,028
|
|
|
$
|
1,341
|
|
|
$
|
61,841
|
|
|
|
Estimated Changes in
Net Interest Income
|
||||
Rate Change from Year 1 – Base
|
|
2018
|
|
2017
|
||
Year 1
|
|
|
|
|
|
|
+200 basis points
|
|
0.09
|
%
|
|
(0.22
|
)%
|
-100 basis points
|
|
(0.63
|
)%
|
|
(3.06
|
)%
|
-200 basis points
(1)
|
|
(1.63
|
)%
|
|
Not measured
|
|
Year 2
|
|
|
|
|
||
+200 basis points
|
|
6.79
|
%
|
|
6.86
|
%
|
-100 basis points
|
|
(0.90
|
)%
|
|
(8.08
|
)%
|
-200 basis points
(1)
|
|
(7.74
|
)%
|
|
Not measured
|
|
(1)
|
The down 200 basis points scenario was not performed as part of the Company's December 31, 2017 net interest income sensitivity analysis given market interest rates at that time.
|
|
|
December 31,
|
||||||
(In thousands, except number of shares)
|
|
2018
|
|
2017
|
||||
ASSETS
|
|
|
|
|
|
|
||
Cash and due from banks
|
|
$
|
52,240
|
|
|
$
|
44,057
|
|
Interest-bearing deposits in other banks (including restricted cash)
|
|
14,759
|
|
|
58,914
|
|
||
Total cash, cash equivalents and restricted cash
|
|
66,999
|
|
|
102,971
|
|
||
Investments:
|
|
|
|
|
||||
Available-for-sale securities, at fair value (book value of $933,399 and $803,021, respectively)
|
|
910,692
|
|
|
789,899
|
|
||
Held-to-maturity securities, at amortized cost (fair value of $1,291 and $94,913, respectively)
|
|
1,307
|
|
|
94,073
|
|
||
Other investments
|
|
14,679
|
|
|
23,670
|
|
||
Total investments
|
|
926,678
|
|
|
907,642
|
|
||
Loans held for sale, at fair value (book value of $4,314 and $8,066, respectively)
|
|
4,403
|
|
|
8,103
|
|
||
Loans
|
|
3,026,222
|
|
|
2,782,439
|
|
||
Less: allowance for loan losses
|
|
(24,712
|
)
|
|
(24,171
|
)
|
||
Net loans
|
|
3,001,510
|
|
|
2,758,268
|
|
||
Goodwill
|
|
94,697
|
|
|
94,697
|
|
||
Other intangible assets
|
|
4,230
|
|
|
4,955
|
|
||
Bank-owned life insurance
|
|
89,919
|
|
|
87,489
|
|
||
Premises and equipment, net
|
|
42,495
|
|
|
41,891
|
|
||
Deferred tax assets
|
|
23,053
|
|
|
22,776
|
|
||
Other assets
|
|
43,451
|
|
|
36,606
|
|
||
Total assets
|
|
$
|
4,297,435
|
|
|
$
|
4,065,398
|
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
||
Liabilities
|
|
|
|
|
||||
Deposits:
|
|
|
|
|
|
|
||
Non-interest checking
|
|
$
|
592,781
|
|
|
$
|
478,643
|
|
Interest checking
|
|
927,321
|
|
|
855,570
|
|
||
Savings and money market
|
|
1,137,356
|
|
|
985,508
|
|
||
Certificates of deposit
|
|
443,912
|
|
|
475,010
|
|
||
Brokered deposits
|
|
363,104
|
|
|
205,760
|
|
||
Total deposits
|
|
3,464,474
|
|
|
3,000,491
|
|
||
Short-term borrowings
|
|
270,868
|
|
|
541,796
|
|
||
Long-term borrowings
|
|
11,580
|
|
|
10,791
|
|
||
Subordinated debentures
|
|
59,067
|
|
|
58,911
|
|
||
Accrued interest and other liabilities
|
|
55,621
|
|
|
49,996
|
|
||
Total liabilities
|
|
3,861,610
|
|
|
3,661,985
|
|
||
Commitments and contingencies
|
|
|
|
|
|
|
||
Shareholders’ Equity
|
|
|
|
|
||||
Common stock, no par value: authorized 40,000,000 shares, issued and outstanding 15,591,914 and 15,524,704 on December 31, 2018 and 2017, respectively
|
|
158,215
|
|
|
156,904
|
|
||
Retained earnings
|
|
302,030
|
|
|
266,723
|
|
||
Accumulated other comprehensive loss:
|
|
|
|
|
||||
Net unrealized losses on available-for-sale securities, net of tax
|
|
(17,826
|
)
|
|
(10,300
|
)
|
||
Net unrealized losses on cash flow hedging derivative instruments, net of tax
|
|
(4,437
|
)
|
|
(5,926
|
)
|
||
Net unrecognized losses on postretirement plans, net of tax
|
|
(2,157
|
)
|
|
(3,988
|
)
|
||
Total accumulated other comprehensive loss
|
|
(24,420
|
)
|
|
(20,214
|
)
|
||
Total shareholders’ equity
|
|
435,825
|
|
|
403,413
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
4,297,435
|
|
|
$
|
4,065,398
|
|
|
|
For The Year Ended
December 31,
|
||||||||||
(In thousands, except number of shares and per share data)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Interest Income
|
|
|
|
|
|
|
|
|
|
|||
Interest and fees on loans
|
|
$
|
128,546
|
|
|
$
|
114,563
|
|
|
$
|
109,224
|
|
Taxable interest income
|
|
17,727
|
|
|
16,879
|
|
|
16,082
|
|
|||
Nontaxable interest income
|
|
2,648
|
|
|
2,764
|
|
|
2,836
|
|
|||
Dividend income
|
|
1,315
|
|
|
1,135
|
|
|
1,005
|
|
|||
Other interest income
|
|
1,141
|
|
|
763
|
|
|
479
|
|
|||
Total interest income
|
|
151,377
|
|
|
136,104
|
|
|
129,626
|
|
|||
Interest Expense
|
|
|
|
|
|
|
|
|
|
|||
Interest on deposits
|
|
20,113
|
|
|
11,811
|
|
|
8,633
|
|
|||
Interest on borrowings
|
|
7,456
|
|
|
5,585
|
|
|
4,506
|
|
|||
Interest on subordinated debentures
|
|
3,415
|
|
|
3,408
|
|
|
3,415
|
|
|||
Total interest expense
|
|
30,984
|
|
|
20,804
|
|
|
16,554
|
|
|||
Net interest income
|
|
120,393
|
|
|
115,300
|
|
|
113,072
|
|
|||
Provision for credit losses
|
|
847
|
|
|
3,035
|
|
|
5,258
|
|
|||
Net interest income after provision for credit losses
|
|
119,546
|
|
|
112,265
|
|
|
107,814
|
|
|||
Non-Interest Income
|
|
|
|
|
|
|
|
|
|
|||
Debit card income
|
|
9,067
|
|
|
8,079
|
|
|
7,578
|
|
|||
Service charges on deposit accounts
|
|
7,663
|
|
|
7,529
|
|
|
7,210
|
|
|||
Mortgage banking income, net
|
|
5,914
|
|
|
7,363
|
|
|
6,258
|
|
|||
Income from fiduciary services
|
|
5,376
|
|
|
5,108
|
|
|
4,960
|
|
|||
Brokerage and insurance commissions
|
|
2,615
|
|
|
2,147
|
|
|
2,074
|
|
|||
Bank-owned life insurance income
|
|
2,430
|
|
|
2,370
|
|
|
2,594
|
|
|||
Other service charges and fees
|
|
2,080
|
|
|
2,029
|
|
|
1,962
|
|
|||
Customer loan swap fees
|
|
956
|
|
|
1,574
|
|
|
2,104
|
|
|||
Net gain on sale of securities
|
|
275
|
|
|
855
|
|
|
51
|
|
|||
Other income
|
|
1,800
|
|
|
1,545
|
|
|
4,830
|
|
|||
Total non-interest income
|
|
38,176
|
|
|
38,599
|
|
|
39,621
|
|
|||
Non-Interest Expense
|
|
|
|
|
|
|
|
|
|
|||
Salaries and employee benefits expense
|
|
51,513
|
|
|
49,109
|
|
|
47,254
|
|
|||
Furniture, equipment and data processing costs
|
|
10,359
|
|
|
9,894
|
|
|
9,557
|
|
|||
Net occupancy costs
|
|
6,876
|
|
|
6,884
|
|
|
7,088
|
|
|||
Consulting and professional fees
|
|
3,752
|
|
|
3,118
|
|
|
3,234
|
|
|||
Debit card expense
|
|
3,180
|
|
|
2,755
|
|
|
2,584
|
|
|||
Regulatory assessments
|
|
1,937
|
|
|
2,166
|
|
|
2,777
|
|
|||
Other real estate owned and collection costs, net
|
|
935
|
|
|
971
|
|
|
3,128
|
|
|||
Amortization of intangible assets
|
|
725
|
|
|
1,809
|
|
|
1,903
|
|
|||
Merger and acquisition costs
|
|
—
|
|
|
—
|
|
|
866
|
|
|||
Other expenses
|
|
12,668
|
|
|
11,804
|
|
|
11,505
|
|
|||
Total non-interest expense
|
|
91,945
|
|
|
88,510
|
|
|
89,896
|
|
|||
Income before income tax expense
|
|
65,777
|
|
|
62,354
|
|
|
57,539
|
|
|||
Income Tax Expense
|
|
12,706
|
|
|
33,878
|
|
|
17,472
|
|
|||
Net income
|
|
$
|
53,071
|
|
|
$
|
28,476
|
|
|
$
|
40,067
|
|
Per Share Data:
|
|
|
|
|
|
|
|
|
|
|||
Basic earnings per share
|
|
$
|
3.40
|
|
|
$
|
1.83
|
|
|
$
|
2.59
|
|
Diluted earnings per share
|
|
$
|
3.39
|
|
|
$
|
1.82
|
|
|
$
|
2.57
|
|
Weighted average number of common shares outstanding
|
|
15,571,387
|
|
|
15,509,665
|
|
|
15,422,160
|
|
|||
Diluted weighted average number of common shares outstanding
|
|
15,626,303
|
|
|
15,588,347
|
|
|
15,504,239
|
|
|||
Cash dividends declared per share
|
|
$
|
1.15
|
|
|
$
|
0.94
|
|
|
$
|
0.83
|
|
|
|
For The Year Ended
December 31,
|
||||||||||
(In thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net income
|
|
$
|
53,071
|
|
|
$
|
28,476
|
|
|
$
|
40,067
|
|
Other comprehensive loss:
|
|
|
|
|
|
|
|
|
|
|||
Net change in unrealized losses on available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|||
Net change in unrealized losses on available-for-sale securities, net of tax of $1,558, $1,017, and $1,212, respectively
|
|
(5,689
|
)
|
|
(1,888
|
)
|
|
(2,251
|
)
|
|||
Net unrealized losses on securities transferred to available-for-sale securities from held-to-maturity securities, net of tax of $591, $0, and $0, respectively
(1)
|
|
(2,160
|
)
|
|
—
|
|
|
—
|
|
|||
Net reclassification adjustment for net losses (gains) included in net income, net of tax of ($142), $299, and $18, respectively
(2)
|
|
521
|
|
|
(556
|
)
|
|
(33
|
)
|
|||
Net change in unrealized losses on available-for-sale securities, net of tax
|
|
(7,328
|
)
|
|
(2,444
|
)
|
|
(2,284
|
)
|
|||
Net change in unrealized losses on cash flow hedging derivatives:
|
|
|
|
|
|
|
||||||
Net change in unrealized losses on cash flow hedging derivatives, net of tax of ($229), $134, and $343, respectively
|
|
837
|
|
|
(248
|
)
|
|
(637
|
)
|
|||
Net reclassification adjustment for effective portion of cash flow hedges, net of tax of ($179), ($557), and ($709), respectively
(3)
|
|
652
|
|
|
1,035
|
|
|
1,317
|
|
|||
Net change in unrealized losses on cash flow hedging derivatives, net of tax
|
|
1,489
|
|
|
787
|
|
|
680
|
|
|||
Postretirement plans:
|
|
|
|
|
|
|
||||||
Net actuarial gain (loss), net of tax of ($375), $723, and $127, respectively
|
|
1,368
|
|
|
(1,342
|
)
|
|
(235
|
)
|
|||
Reclassification of amortization of net unrecognized actuarial loss and of net prior service cost included in net periodic cost, net of tax of ($126), ($92), and ($83), respectively
(4)
|
|
463
|
|
|
170
|
|
|
152
|
|
|||
Net gain (loss) on postretirement plans, net of tax
|
|
1,831
|
|
|
(1,172
|
)
|
|
(83
|
)
|
|||
Other comprehensive loss
|
|
(4,008
|
)
|
|
(2,829
|
)
|
|
(1,687
|
)
|
|||
Comprehensive income
|
|
$
|
49,063
|
|
|
$
|
25,647
|
|
|
$
|
38,380
|
|
(1)
|
In the fourth quarter of 2018, the Company adopted ASU 2017-12, effective January 1, 2018, and transferred its qualifying held-to-maturity debt securities to available-for-sale securities. Refer to Note 1 for further details.
|
(2)
|
Reclassified into the consolidated statements of income within net gain on sale of securities.
|
(3)
|
Reclassified into the consolidated statements of income within interest on borrowings and subordinated debentures.
|
(4)
|
Reclassified into the consolidated statements of income within salaries and employee benefits and other expenses.
|
|
|
Common Stock
|
|
Retained Earnings
|
|
Accumulated Other Comprehensive Loss
|
|
Total Shareholders’ Equity
|
|||||||||||
(In thousands, except number of shares and per share data)
|
|
Shares Outstanding
|
|
Amount
|
|
||||||||||||||
Balance at December 31, 2015
|
|
15,330,717
|
|
|
$
|
153,083
|
|
|
$
|
222,329
|
|
|
$
|
(12,222
|
)
|
|
$
|
363,190
|
|
Cumulative-effect adjustment (Note 1)
|
|
—
|
|
|
72
|
|
|
(72
|
)
|
|
—
|
|
|
—
|
|
||||
Cash in lieu for fractional shares paid due to the stock split (Note 13)
|
|
(173
|
)
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
||||
Net income
|
|
—
|
|
|
—
|
|
|
40,067
|
|
|
—
|
|
|
40,067
|
|
||||
Other comprehensive loss, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,687
|
)
|
|
(1,687
|
)
|
||||
Stock-based compensation expense
|
|
—
|
|
|
1,997
|
|
|
—
|
|
|
—
|
|
|
1,997
|
|
||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit
|
|
145,835
|
|
|
894
|
|
|
—
|
|
|
—
|
|
|
894
|
|
||||
Cash dividends declared ($0.83 per share)
|
|
—
|
|
|
—
|
|
|
(12,909
|
)
|
|
—
|
|
|
(12,909
|
)
|
||||
Balance at December 31, 2016
|
|
15,476,379
|
|
|
156,041
|
|
|
249,415
|
|
|
(13,909
|
)
|
|
391,547
|
|
||||
Reclassification of certain income tax effects from AOCI (Note 1)
|
|
—
|
|
|
—
|
|
|
3,476
|
|
|
(3,476
|
)
|
|
—
|
|
||||
Net income
|
|
—
|
|
|
—
|
|
|
28,476
|
|
|
—
|
|
|
28,476
|
|
||||
Other comprehensive loss, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,829
|
)
|
|
(2,829
|
)
|
||||
Stock-based compensation expense
|
|
—
|
|
|
1,469
|
|
|
—
|
|
|
—
|
|
|
1,469
|
|
||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit
|
|
48,325
|
|
|
(606
|
)
|
|
—
|
|
|
—
|
|
|
(606
|
)
|
||||
Cash dividends declared ($0.94 per share)
|
|
—
|
|
|
—
|
|
|
(14,644
|
)
|
|
—
|
|
|
(14,644
|
)
|
||||
Balance at December 31, 2017
|
|
15,524,704
|
|
|
156,904
|
|
|
266,723
|
|
|
(20,214
|
)
|
|
403,413
|
|
||||
Cumulative-effect adjustment
(Note 1)
|
|
—
|
|
|
—
|
|
|
198
|
|
|
(198
|
)
|
|
—
|
|
||||
Net income
|
|
—
|
|
|
—
|
|
|
53,071
|
|
|
—
|
|
|
53,071
|
|
||||
Other comprehensive loss, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,008
|
)
|
|
(4,008
|
)
|
||||
Stock-based compensation expense
|
|
—
|
|
|
1,688
|
|
|
—
|
|
|
—
|
|
|
1,688
|
|
||||
Exercise of stock options and issuance of vested share awards, net of repurchase for tax withholdings and tax benefit
|
|
67,960
|
|
|
(350
|
)
|
|
—
|
|
|
—
|
|
|
(350
|
)
|
||||
Common stock repurchased
|
|
(750
|
)
|
|
(27
|
)
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
||||
Cash dividends declared ($1.15 per share)
|
|
—
|
|
|
—
|
|
|
(17,962
|
)
|
|
—
|
|
|
(17,962
|
)
|
||||
Balance at December 31, 2018
|
|
15,591,914
|
|
|
$
|
158,215
|
|
|
$
|
302,030
|
|
|
$
|
(24,420
|
)
|
|
$
|
435,825
|
|
|
|
For The Year Ended
December 31,
|
||||||||||
(In thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
|||
Net income
|
|
$
|
53,071
|
|
|
$
|
28,476
|
|
|
$
|
40,067
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Originations of mortgage loans held for sale
|
|
(202,194
|
)
|
|
(211,568
|
)
|
|
(236,450
|
)
|
|||
Proceeds from the sale of mortgage loans
|
|
211,397
|
|
|
224,883
|
|
|
238,351
|
|
|||
Gain on sale of mortgage loans, net of origination costs
|
|
(5,451
|
)
|
|
(6,256
|
)
|
|
(6,201
|
)
|
|||
Depreciation and amortization expense
|
|
3,765
|
|
|
3,761
|
|
|
4,426
|
|
|||
Investment securities amortization and accretion, net
|
|
3,206
|
|
|
3,122
|
|
|
3,135
|
|
|||
Purchase accounting accretion, net
|
|
(2,316
|
)
|
|
(2,834
|
)
|
|
(5,048
|
)
|
|||
Stock-based compensation expense
|
|
1,688
|
|
|
1,469
|
|
|
1,997
|
|
|||
Provision for credit losses
|
|
847
|
|
|
3,035
|
|
|
5,258
|
|
|||
Amortization of intangible assets
|
|
725
|
|
|
1,809
|
|
|
1,903
|
|
|||
Net gain on sale of premises and equipment
|
|
(34
|
)
|
|
—
|
|
|
—
|
|
|||
Net gain on sale of investment securities
|
|
(275
|
)
|
|
(855
|
)
|
|
(51
|
)
|
|||
Net increase in other real estate owned valuation allowance and (gain) loss on disposition
|
|
(17
|
)
|
|
(15
|
)
|
|
35
|
|
|||
Income from bank-owned life insurance death benefits
|
|
—
|
|
|
—
|
|
|
(507
|
)
|
|||
(Increase) decrease in other assets
|
|
(6,353
|
)
|
|
12,060
|
|
|
11,836
|
|
|||
Increase (decrease) in other liabilities
|
|
6,275
|
|
|
1,247
|
|
|
(1,333
|
)
|
|||
Net cash provided by operating activities
|
|
64,334
|
|
|
58,334
|
|
|
57,418
|
|
|||
Investing Activities
|
|
|
|
|
|
|
|
|
|
|||
Proceeds from sales and maturity of available-for-sale securities
|
|
189,420
|
|
|
154,973
|
|
|
184,564
|
|
|||
Purchase of available-for-sale securities
|
|
(232,206
|
)
|
|
(170,495
|
)
|
|
(220,169
|
)
|
|||
Proceeds from maturities of held-to-maturity securities
|
|
750
|
|
|
—
|
|
|
—
|
|
|||
Purchase of securities held-to-maturity
|
|
—
|
|
|
—
|
|
|
(10,986
|
)
|
|||
Net increase in loans
|
|
(243,815
|
)
|
|
(187,740
|
)
|
|
(103,699
|
)
|
|||
Purchase of bank-owned life insurance
|
|
—
|
|
|
(7,000
|
)
|
|
(16,700
|
)
|
|||
Purchase of Federal Home Loan Bank stock
|
|
(15,127
|
)
|
|
(12,290
|
)
|
|
(7,342
|
)
|
|||
Proceeds from sale of Federal Home Loan Bank and Federal Reserve Bank stock
|
|
24,864
|
|
|
11,823
|
|
|
5,652
|
|
|||
Purchase of premises and equipment
|
|
(5,021
|
)
|
|
(2,844
|
)
|
|
(1,671
|
)
|
|||
Proceeds from the sale of premises and equipment
|
|
749
|
|
|
137
|
|
|
90
|
|
|||
Proceeds from bank-owned life insurance death benefits
|
|
—
|
|
|
—
|
|
|
1,092
|
|
|||
Proceeds from other investments
|
|
1,593
|
|
|
—
|
|
|
—
|
|
|||
Recoveries of previously charged-off loans
|
|
1,944
|
|
|
497
|
|
|
486
|
|
|||
Proceeds from sale of other real estate owned
|
|
72
|
|
|
808
|
|
|
730
|
|
|||
Net cash used in investing activities
|
|
(276,777
|
)
|
|
(212,131
|
)
|
|
(167,953
|
)
|
|||
Financing Activities
|
|
|
|
|
|
|
|
|
|
|||
Net increase in deposits
|
|
464,132
|
|
|
172,291
|
|
|
103,027
|
|
|||
(Repayments of) net proceeds from borrowings less than 90 days
|
|
(270,114
|
)
|
|
36,699
|
|
|
77,227
|
|
|||
Repayments of Federal Home Loan Bank long-term advances
|
|
—
|
|
|
(20,000
|
)
|
|
(25,000
|
)
|
|||
Repayments of wholesale repurchase agreements
|
|
—
|
|
|
(5,000
|
)
|
|
(25,000
|
)
|
|||
Common stock repurchase
|
|
(27
|
)
|
|
—
|
|
|
—
|
|
|||
Exercise of stock options and issuance of restricted stock, net of repurchase for tax withholdings
|
|
(350
|
)
|
|
(606
|
)
|
|
894
|
|
|||
Cash dividends paid on common stock and cash in lieu for fractional shares paid due to stock split
|
|
(17,170
|
)
|
|
(14,323
|
)
|
|
(12,394
|
)
|
|||
Net cash provided by financing activities
|
|
176,471
|
|
|
169,061
|
|
|
118,754
|
|
|||
Net (decrease) increase in cash, cash equivalents and restricted cash
|
|
(35,972
|
)
|
|
15,264
|
|
|
8,219
|
|
|||
Cash, cash equivalents and restricted cash at beginning of year
|
|
102,971
|
|
|
87,707
|
|
|
79,488
|
|
|||
Cash, cash equivalents and restricted cash at end of year
|
|
$
|
66,999
|
|
|
$
|
102,971
|
|
|
$
|
87,707
|
|
|
|
For The Year Ended
December 31,
|
||||||||||
(In thousands)
|
|
2018
|
|
2017
|
|
2016
|
||||||
Supplemental information
|
|
|
|
|
|
|
|
|
|
|||
Interest paid
|
|
$
|
30,177
|
|
|
$
|
20,774
|
|
|
$
|
16,661
|
|
Income taxes paid
|
|
10,667
|
|
|
16,841
|
|
|
10,647
|
|
|||
Transfer from loans to other real estate owned
|
|
55
|
|
|
—
|
|
|
383
|
|
|||
Measurement-period adjustments - SBM Financial, Inc. acquisition
|
|
—
|
|
|
—
|
|
|
960
|
|
AFS:
|
Available-for-sale
|
|
HPFC:
|
Healthcare Professional Funding Corporation, a wholly-owned subsidiary of Camden National Bank
|
ALCO:
|
Asset/Liability Committee
|
|
HTM:
|
Held-to-maturity
|
ALL:
|
Allowance for loan losses
|
|
IRS:
|
Internal Revenue Service
|
AOCI:
|
Accumulated other comprehensive income (loss)
|
|
LIBOR:
|
London Interbank Offered Rate
|
ASC:
|
Accounting Standards Codification
|
|
LTIP:
|
Long-Term Performance Share Plan
|
ASU:
|
Accounting Standards Update
|
|
Management ALCO:
|
Management Asset/Liability Committee
|
Bank:
|
Camden National Bank, a wholly-owned subsidiary of Camden National Corporation
|
|
MBS:
|
Mortgage-backed security
|
BOLI:
|
Bank-owned life insurance
|
|
MSPP:
|
Management Stock Purchase Plan
|
Board ALCO:
|
Board of Directors' Asset/Liability Committee
|
|
N/A:
|
Not applicable
|
CCTA:
|
Camden Capital Trust A, an unconsolidated entity formed by Camden National Corporation
|
|
N.M.:
|
Not meaningful
|
CDs:
|
Certificate of deposits
|
|
OCC:
|
Office of the Comptroller of the Currency
|
Company:
|
Camden National Corporation
|
|
OCI:
|
Other comprehensive income (loss)
|
CMO:
|
Collateralized mortgage obligation
|
|
OREO:
|
Other real estate owned
|
DCRP:
|
Defined Contribution Retirement Plan
|
|
OTTI:
|
Other-than-temporary impairment
|
EPS:
|
Earnings per share
|
|
SBM:
|
SBM Financial, Inc., the parent company of The Bank of Maine, that was acquired by Camden National Corporation
|
FASB:
|
Financial Accounting Standards Board
|
|
SERP:
|
Supplemental executive retirement plans
|
FDIC:
|
Federal Deposit Insurance Corporation
|
|
Tax Act:
|
Tax Cuts and Jobs Act of 2017, enacted on December 22, 2017
|
FHLB:
|
Federal Home Loan Bank
|
|
TDR:
|
Troubled-debt restructured loan
|
FHLBB:
|
Federal Home Loan Bank of Boston
|
|
UBCT:
|
Union Bankshares Capital Trust I, an unconsolidated entity formed by Union Bankshares Company that was subsequently acquired by Camden National Corporation
|
FRB:
|
Federal Reserve System Board of Governors
|
|
U.S.:
|
United States of America
|
FRBB:
|
Federal Reserve Bank of Boston
|
|
2003 Plan:
|
2003 Stock Option and Incentive Plan
|
GAAP:
|
Generally accepted accounting principles in the United States
|
|
2012 Plan:
|
2012 Equity and Incentive Plan
|
•
|
The Company's equity investments are no longer designated and accounted for as AFS securities, with the change in fair value recognized within AOCI, net of tax. Instead, the change in fair value of equity investments with a readily determinable fair value are to be recognized within net income. Refer to
Revenue from Contracts
with Customers
within Note 14 for further details.
|
•
|
Effective January 1, 2018, the Company used the "exit price" notion when measuring the fair value of financial instruments for disclosure purposes only. The Company previously used the "entry price" notion for purposes of measuring its loans held for investment for disclosure purposes only. The change in valuation methodology has been applied prospectively as it does not have a material effect on the comparability of the disclosure. Refer to Note 19 for disclosure of fair value of financial instruments.
|
•
|
The Company no longer discloses the method or significant assumptions used to estimate the fair value for its financial instruments measured at amortized cost on the consolidated statements of condition for which fair value is provided for disclosure purposes only.
|
•
|
An entity need not reassess whether any expired or existing contract are or contain leases.
|
•
|
An entity need not reassess the lease classification for any expired or existing leases.
|
•
|
An entity need not reassess initial direct costs for any existing leases.
|
•
|
An entity may elect to apply hindsight to leases that existed during the period from the beginning of the earliest period presented in the financial statements until the effective date.
|
•
|
Modified retrospective transition method, which allows companies to apply ASU 2016-02 at the date of adoption and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption.
|
•
|
A change in the Company's assessment of its ALL and allowance on unused commitments as it will transition from an incurred loss model to an expected loss model, which may result in an increase in the ALL upon adoption and may negatively impact the Company and Bank's regulatory capital ratios.
|
•
|
May reduce the carrying value of the Company's HTM investment securities as it will require an allowance on the expected losses over the life of these securities to be recorded upon adoption.
|
•
|
Changes to the considerations when assessing AFS debt securities for OTTI, including (i) no longer considering the amount of time a security has been in an unrealized loss position and (ii) no longer considering the historical and implied volatility of a security and recoveries or declines in the fair value after the balance sheet date, as well as the presentation of OTTI as an allowance rather than a permanent write-down of the debt security.
|
•
|
Changes to the disclosure requirements to reflect the transition from an incurred loss methodology to an expected credit loss methodology, as well as certain disclosures of credit quality indicators in relation to the amortized cost of financing receivables disaggregated by year of origination (or vintage).
|
|
Amortized Cost
|
|
Unrealized Gains
|
|
Unrealized Losses
|
|
Fair
Value
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||
AFS Investments (carried at fair value):
|
|
|
|
|
|
|
|
||||||||
Obligations of states and political subdivisions
|
$
|
94,430
|
|
|
$
|
216
|
|
|
$
|
(894
|
)
|
|
$
|
93,752
|
|
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
|
466,613
|
|
|
583
|
|
|
(13,524
|
)
|
|
453,672
|
|
||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
|
351,958
|
|
|
1,007
|
|
|
(10,071
|
)
|
|
342,894
|
|
||||
Subordinated corporate bonds
|
20,398
|
|
|
23
|
|
|
(47
|
)
|
|
20,374
|
|
||||
Total AFS investments
|
$
|
933,399
|
|
|
$
|
1,829
|
|
|
$
|
(24,536
|
)
|
|
$
|
910,692
|
|
HTM Investments (carried at amortized cost):
|
|
|
|
|
|
|
|
||||||||
Obligations of states and political subdivisions
|
$
|
1,307
|
|
|
$
|
8
|
|
|
$
|
(24
|
)
|
|
$
|
1,291
|
|
Total HTM investments
|
$
|
1,307
|
|
|
$
|
8
|
|
|
$
|
(24
|
)
|
|
$
|
1,291
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||
AFS Investments (carried at fair value):
|
|
|
|
|
|
|
|
||||||||
Obligations of states and political subdivisions
|
$
|
7,232
|
|
|
$
|
103
|
|
|
$
|
—
|
|
|
$
|
7,335
|
|
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
|
510,176
|
|
|
597
|
|
|
(7,471
|
)
|
|
503,302
|
|
||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
|
279,575
|
|
|
14
|
|
|
(6,790
|
)
|
|
272,799
|
|
||||
Subordinated corporate bonds
|
5,484
|
|
|
173
|
|
|
—
|
|
|
5,657
|
|
||||
Equity investments
(1)
|
554
|
|
|
252
|
|
|
—
|
|
|
806
|
|
||||
Total AFS investments
|
$
|
803,021
|
|
|
$
|
1,139
|
|
|
$
|
(14,261
|
)
|
|
$
|
789,899
|
|
HTM Securities (carried at amortized cost):
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of states and political subdivisions
|
$
|
94,073
|
|
|
$
|
1,077
|
|
|
$
|
(237
|
)
|
|
$
|
94,913
|
|
Total HTM investments
|
$
|
94,073
|
|
|
$
|
1,077
|
|
|
$
|
(237
|
)
|
|
$
|
94,913
|
|
(1)
|
As of December 31, 2017, equity investments with a readily determinable fair value were designated and presented as AFS investments on the consolidated statements of condition. Upon adoption of ASU 2016-01, effective January 1, 2018, these investments were no longer eligible for designation, accounting and presentation as AFS. At December 31, 2018, the Company's equity investments with a readily determinable fair value were presented within other investments on the consolidated statements of condition. Refer to Note 1 for further details.
|
|
Less Than 12 Months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
Fair Value
|
|
Unrealized Losses
|
|
Fair Value
|
|
Unrealized Losses
|
|
Fair Value
|
|
Unrealized Losses
|
||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
AFS Investments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of states and political subdivisions
|
$
|
36,218
|
|
|
$
|
(281
|
)
|
|
$
|
28,437
|
|
|
$
|
(613
|
)
|
|
$
|
64,655
|
|
|
$
|
(894
|
)
|
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
|
46,459
|
|
|
(252
|
)
|
|
364,430
|
|
|
(13,272
|
)
|
|
410,889
|
|
|
(13,524
|
)
|
||||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
|
5,956
|
|
|
(40
|
)
|
|
227,461
|
|
|
(10,031
|
)
|
|
233,417
|
|
|
(10,071
|
)
|
||||||
Subordinated corporate bonds
|
11,378
|
|
|
(26
|
)
|
|
966
|
|
|
(21
|
)
|
|
12,344
|
|
|
(47
|
)
|
||||||
Total AFS investments
|
$
|
100,011
|
|
|
$
|
(599
|
)
|
|
$
|
621,294
|
|
|
$
|
(23,937
|
)
|
|
$
|
721,305
|
|
|
$
|
(24,536
|
)
|
HTM Investments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of states and political subdivisions
|
$
|
509
|
|
|
$
|
(5
|
)
|
|
$
|
411
|
|
|
$
|
(19
|
)
|
|
$
|
920
|
|
|
$
|
(24
|
)
|
Total HTM investments
|
$
|
509
|
|
|
$
|
(5
|
)
|
|
$
|
411
|
|
|
$
|
(19
|
)
|
|
$
|
920
|
|
|
$
|
(24
|
)
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
AFS Investments:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
|
$
|
221,466
|
|
|
$
|
(2,393
|
)
|
|
$
|
233,971
|
|
|
$
|
(5,078
|
)
|
|
$
|
455,437
|
|
|
$
|
(7,471
|
)
|
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
|
102,612
|
|
|
(696
|
)
|
|
164,389
|
|
|
(6,094
|
)
|
|
267,001
|
|
|
(6,790
|
)
|
||||||
Total AFS investments
|
$
|
324,078
|
|
|
$
|
(3,089
|
)
|
|
$
|
398,360
|
|
|
$
|
(11,172
|
)
|
|
$
|
722,438
|
|
|
$
|
(14,261
|
)
|
HTM Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Obligations of states and political subdivisions
|
$
|
9,317
|
|
|
$
|
(57
|
)
|
|
$
|
9,436
|
|
|
$
|
(180
|
)
|
|
$
|
18,753
|
|
|
$
|
(237
|
)
|
Total HTM investments
|
$
|
9,317
|
|
|
$
|
(57
|
)
|
|
$
|
9,436
|
|
|
$
|
(180
|
)
|
|
$
|
18,753
|
|
|
$
|
(237
|
)
|
|
For The Year Ended
December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Proceeds from sales of AFS investments
|
$
|
56,155
|
|
|
$
|
20,366
|
|
|
$
|
28,850
|
|
Gross realized gains
|
32
|
|
|
869
|
|
|
125
|
|
|||
Gross realized losses
|
(695
|
)
|
|
(14
|
)
|
|
(74
|
)
|
|
Amortized Cost
|
|
Fair
Value
|
||||
AFS Investments
|
|
|
|
||||
Due in one year or less
|
$
|
17,046
|
|
|
$
|
16,987
|
|
Due after one year through five years
|
68,064
|
|
|
66,560
|
|
||
Due after five years through ten years
|
247,274
|
|
|
241,539
|
|
||
Due after ten years
|
601,015
|
|
|
585,606
|
|
||
|
$
|
933,399
|
|
|
$
|
910,692
|
|
HTM Investments
|
|
|
|
||||
Due in one year or less
|
$
|
—
|
|
|
$
|
—
|
|
Due after one year through five years
|
—
|
|
|
—
|
|
||
Due after five years through ten years
|
1,307
|
|
|
1,291
|
|
||
Due after ten years
|
—
|
|
|
—
|
|
||
|
$
|
1,307
|
|
|
$
|
1,291
|
|
|
Cost
|
|
Unrealized
Gains
|
|
Unrealized
Losses
|
|
Fair Value /
Carrying Value
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||
Equity securities - bank stock (carried at fair value)
(1)
|
$
|
544
|
|
|
$
|
202
|
|
|
$
|
—
|
|
|
$
|
746
|
|
FHLBB (carried at cost)
|
8,559
|
|
|
—
|
|
|
—
|
|
|
8,559
|
|
||||
FRB (carried at cost)
|
5,374
|
|
|
—
|
|
|
—
|
|
|
5,374
|
|
||||
Total other investments
|
$
|
14,477
|
|
|
$
|
202
|
|
|
$
|
—
|
|
|
$
|
14,679
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||
FHLBB (carried at cost)
|
$
|
18,296
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18,296
|
|
FRB (carried at cost)
|
5,374
|
|
|
—
|
|
|
—
|
|
|
5,374
|
|
||||
Total other investments
|
$
|
23,670
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23,670
|
|
(1)
|
Effective January 1, 2018 these investments were reclassified to other investments on the consolidated statements of condition as they are no longer eligible for AFS classification upon adoption of ASU 2016-01. Refer to Note 1 for further details.
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
Residential real estate loans
|
$
|
992,866
|
|
|
$
|
858,369
|
|
Commercial real estate loans
|
1,269,533
|
|
|
1,164,023
|
|
||
Commercial loans
|
381,780
|
|
|
373,400
|
|
||
Home equity loans
|
327,763
|
|
|
323,378
|
|
||
Consumer loans
|
20,624
|
|
|
18,149
|
|
||
HPFC
|
33,656
|
|
|
45,120
|
|
||
Total loans
|
$
|
3,026,222
|
|
|
$
|
2,782,439
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Net unamortized fair value mark discount on acquired loans
|
|
$
|
3,936
|
|
|
$
|
6,207
|
|
Net unamortized loan origination costs
|
|
(1,865
|
)
|
|
(963
|
)
|
||
Total
|
|
$
|
2,071
|
|
|
$
|
5,244
|
|
|
Residential Real Estate
|
|
Commercial Real Estate
|
|
Commercial
|
|
Home
Equity
|
|
Consumer
|
|
HPFC
|
|
Total
|
||||||||||||||
At or For The Year Ended
December 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
ALL:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
$
|
5,086
|
|
|
$
|
11,863
|
|
|
$
|
4,171
|
|
|
$
|
2,367
|
|
|
$
|
233
|
|
|
$
|
451
|
|
|
$
|
24,171
|
|
Loans charged off
|
(173
|
)
|
|
(512
|
)
|
|
(736
|
)
|
|
(476
|
)
|
|
(96
|
)
|
|
(255
|
)
|
|
(2,248
|
)
|
|||||||
Recoveries
|
90
|
|
|
28
|
|
|
1,770
|
|
|
44
|
|
|
11
|
|
|
1
|
|
|
1,944
|
|
|||||||
Provision (credit)
(1)
|
1,068
|
|
|
275
|
|
|
(1,585
|
)
|
|
861
|
|
|
86
|
|
|
140
|
|
|
845
|
|
|||||||
Ending balance
|
$
|
6,071
|
|
|
$
|
11,654
|
|
|
$
|
3,620
|
|
|
$
|
2,796
|
|
|
$
|
234
|
|
|
$
|
337
|
|
|
$
|
24,712
|
|
ALL balance attributable loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually evaluated for impairment
|
$
|
586
|
|
|
$
|
23
|
|
|
$
|
53
|
|
|
$
|
162
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
824
|
|
Collectively evaluated for impairment
|
5,485
|
|
|
11,631
|
|
|
3,567
|
|
|
2,634
|
|
|
234
|
|
|
337
|
|
|
23,888
|
|
|||||||
Total ending ALL
|
$
|
6,071
|
|
|
$
|
11,654
|
|
|
$
|
3,620
|
|
|
$
|
2,796
|
|
|
$
|
234
|
|
|
$
|
337
|
|
|
$
|
24,712
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
$
|
4,762
|
|
|
$
|
930
|
|
|
$
|
786
|
|
|
$
|
442
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
6,926
|
|
Collectively evaluated for impairment
|
988,104
|
|
|
1,268,603
|
|
|
380,994
|
|
|
327,321
|
|
|
20,618
|
|
|
33,656
|
|
|
3,019,296
|
|
|||||||
Total loan balances
|
$
|
992,866
|
|
|
$
|
1,269,533
|
|
|
$
|
381,780
|
|
|
$
|
327,763
|
|
|
$
|
20,624
|
|
|
$
|
33,656
|
|
|
$
|
3,026,222
|
|
At or For The Year Ended
December 31, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
ALL:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
$
|
4,160
|
|
|
$
|
12,154
|
|
|
$
|
3,755
|
|
|
$
|
2,194
|
|
|
$
|
181
|
|
|
$
|
672
|
|
|
$
|
23,116
|
|
Loans charged off
|
(482
|
)
|
|
(124
|
)
|
|
(1,014
|
)
|
|
(434
|
)
|
|
(124
|
)
|
|
(290
|
)
|
|
(2,468
|
)
|
|||||||
Recoveries
|
30
|
|
|
141
|
|
|
301
|
|
|
2
|
|
|
17
|
|
|
6
|
|
|
497
|
|
|||||||
Provision (credit)
(1)
|
1,378
|
|
|
(308
|
)
|
|
1,129
|
|
|
605
|
|
|
159
|
|
|
63
|
|
|
3,026
|
|
|||||||
Ending balance
|
$
|
5,086
|
|
|
$
|
11,863
|
|
|
$
|
4,171
|
|
|
$
|
2,367
|
|
|
$
|
233
|
|
|
$
|
451
|
|
|
$
|
24,171
|
|
ALL balance attributable loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually evaluated for impairment
|
$
|
568
|
|
|
$
|
1,441
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,009
|
|
Collectively evaluated for impairment
|
4,518
|
|
|
10,422
|
|
|
4,171
|
|
|
2,367
|
|
|
233
|
|
|
451
|
|
|
22,162
|
|
|||||||
Total ending ALL
|
$
|
5,086
|
|
|
$
|
11,863
|
|
|
$
|
4,171
|
|
|
$
|
2,367
|
|
|
$
|
233
|
|
|
$
|
451
|
|
|
$
|
24,171
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
$
|
5,171
|
|
|
$
|
6,199
|
|
|
$
|
1,791
|
|
|
$
|
429
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13,590
|
|
Collectively evaluated for impairment
|
853,198
|
|
|
1,157,824
|
|
|
371,609
|
|
|
322,949
|
|
|
18,149
|
|
|
45,120
|
|
|
2,768,849
|
|
|||||||
Total loan balances
|
$
|
858,369
|
|
|
$
|
1,164,023
|
|
|
$
|
373,400
|
|
|
$
|
323,378
|
|
|
$
|
18,149
|
|
|
$
|
45,120
|
|
|
$
|
2,782,439
|
|
|
Residential Real Estate
|
|
Commercial Real Estate
|
|
Commercial
|
|
Home
Equity
|
|
Consumer
|
|
HPFC
|
|
Total
|
||||||||||||||
At or For The Year Ended
December 31, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
ALL:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
$
|
4,545
|
|
|
$
|
10,432
|
|
|
$
|
3,241
|
|
|
$
|
2,731
|
|
|
$
|
193
|
|
|
$
|
24
|
|
|
$
|
21,166
|
|
Loans charged off
|
(356
|
)
|
|
(315
|
)
|
|
(2,218
|
)
|
|
(308
|
)
|
|
(101
|
)
|
|
(507
|
)
|
|
(3,805
|
)
|
|||||||
Recoveries
|
95
|
|
|
50
|
|
|
332
|
|
|
2
|
|
|
7
|
|
|
—
|
|
|
486
|
|
|||||||
Provision (credit)
(1)
|
(124
|
)
|
|
1,987
|
|
|
2,400
|
|
|
(231
|
)
|
|
82
|
|
|
1,155
|
|
|
5,269
|
|
|||||||
Ending balance
|
$
|
4,160
|
|
|
$
|
12,154
|
|
|
$
|
3,755
|
|
|
$
|
2,194
|
|
|
$
|
181
|
|
|
$
|
672
|
|
|
$
|
23,116
|
|
ALL balance attributable loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Individually evaluated for impairment
|
$
|
483
|
|
|
$
|
1,373
|
|
|
$
|
—
|
|
|
$
|
86
|
|
|
$
|
—
|
|
|
$
|
65
|
|
|
$
|
2,007
|
|
Collectively evaluated for impairment
|
3,677
|
|
|
10,781
|
|
|
3,755
|
|
|
2,108
|
|
|
181
|
|
|
607
|
|
|
21,109
|
|
|||||||
Total ending ALL
|
$
|
4,160
|
|
|
$
|
12,154
|
|
|
$
|
3,755
|
|
|
$
|
2,194
|
|
|
$
|
181
|
|
|
$
|
672
|
|
|
$
|
23,116
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
$
|
4,348
|
|
|
$
|
13,317
|
|
|
$
|
2,028
|
|
|
$
|
457
|
|
|
$
|
7
|
|
|
$
|
97
|
|
|
$
|
20,254
|
|
Collectively evaluated for impairment
|
798,146
|
|
|
1,037,463
|
|
|
331,611
|
|
|
329,450
|
|
|
17,325
|
|
|
60,315
|
|
|
2,574,310
|
|
|||||||
Total loan balances
|
$
|
802,494
|
|
|
$
|
1,050,780
|
|
|
$
|
333,639
|
|
|
$
|
329,907
|
|
|
$
|
17,332
|
|
|
$
|
60,412
|
|
|
$
|
2,594,564
|
|
(1)
|
The provision (credit) for loan losses excludes any impact for the change in the reserve for unfunded commitments, which represents management's estimate of the amount required to reflect the probable inherent losses on outstanding letters of credit and unused lines of credit. The reserve for unfunded commitments was presented within accrued interest and other liabilities on the consolidated statements of condition. At
December 31, 2018
,
2017
, and
2016
, the reserve for unfunded commitments was
$22,000
,
$20,000
and
$11,000
, respectively.
|
|
For the Year Ended
December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Provision for loan losses
|
$
|
845
|
|
|
$
|
3,026
|
|
|
$
|
5,269
|
|
Change in reserve for unfunded commitments
|
2
|
|
|
9
|
|
|
(11
|
)
|
|||
Provision for credit losses
|
$
|
847
|
|
|
$
|
3,035
|
|
|
$
|
5,258
|
|
•
|
Grade 1 through 6 — Grades 1 through 6 represent groups of loans that are not subject to adverse criticism as defined in regulatory guidance. Loans in these groups exhibit characteristics that represent low to moderate risks, which is measured using a variety of credit risk criteria, such as cash flow coverage, debt service coverage, balance sheet leverage, liquidity, management experience, industry position, prevailing economic conditions, support from secondary sources of repayment and other credit factors that may be relevant to a specific loan. In general, these loans are supported by properly margined collateral and guarantees of principal parties.
|
•
|
Grade 7 — Loans with potential weakness (Special Mention). Loans in this category are currently protected based on collateral and repayment capacity and do not constitute undesirable credit risk, but have potential weakness that may result in deterioration of the repayment process at some future date. This classification is used if a negative trend is evident in the obligor’s financial situation. Special mention loans do not sufficiently expose the Company to warrant adverse classification.
|
•
|
Grade 8 — Loans with definite weakness (Substandard). Loans classified as substandard are inadequately protected by the current sound worth and paying capacity of the obligor or by collateral pledged. Borrowers experience difficulty in meeting debt repayment requirements. Deterioration is sufficient to cause the Company to look to the sale of collateral.
|
•
|
Grade 9 — Loans with potential loss (Doubtful). Loans classified as doubtful have all the weaknesses inherent in the substandard grade with the added characteristic that the weaknesses make collection or liquidation of the loan in full highly questionable and improbable. The possibility of some loss is extremely high, but because of specific pending factors that may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined.
|
•
|
Grade 10 — Loans with definite loss (Loss). Loans classified as loss are considered uncollectible. The loss classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the asset because recovery and collection time may be protracted.
|
|
|
Residential Real Estate
|
|
Commercial Real Estate
|
|
Commercial
|
|
Home Equity
|
|
Consumer
|
|
HPFC
|
|
Total
|
||||||||||||||
December 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Pass (Grades 1 – 6)
|
|
$
|
983,086
|
|
|
$
|
1,247,190
|
|
|
$
|
374,429
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
32,261
|
|
|
$
|
2,636,966
|
|
Performing
|
|
—
|
|
|
—
|
|
|
—
|
|
|
325,917
|
|
|
20,595
|
|
|
—
|
|
|
346,512
|
|
|||||||
Special Mention (Grade 7)
|
|
887
|
|
|
7,921
|
|
|
3,688
|
|
|
—
|
|
|
—
|
|
|
123
|
|
|
12,619
|
|
|||||||
Substandard (Grade 8)
|
|
8,893
|
|
|
14,422
|
|
|
3,663
|
|
|
—
|
|
|
—
|
|
|
1,272
|
|
|
28,250
|
|
|||||||
Non-performing
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,846
|
|
|
29
|
|
|
—
|
|
|
1,875
|
|
|||||||
Total
|
|
$
|
992,866
|
|
|
$
|
1,269,533
|
|
|
$
|
381,780
|
|
|
$
|
327,763
|
|
|
$
|
20,624
|
|
|
$
|
33,656
|
|
|
$
|
3,026,222
|
|
December 31, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Pass (Grades 1 – 6)
|
|
$
|
846,394
|
|
|
$
|
1,130,235
|
|
|
$
|
354,904
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
43,049
|
|
|
$
|
2,374,582
|
|
Performing
|
|
—
|
|
|
—
|
|
|
—
|
|
|
321,727
|
|
|
18,149
|
|
|
—
|
|
|
339,876
|
|
|||||||
Special Mention (Grade 7)
|
|
922
|
|
|
9,154
|
|
|
12,517
|
|
|
—
|
|
|
—
|
|
|
191
|
|
|
22,784
|
|
|||||||
Substandard (Grade 8)
|
|
11,053
|
|
|
24,634
|
|
|
5,979
|
|
|
—
|
|
|
—
|
|
|
1,880
|
|
|
43,546
|
|
|||||||
Non-performing
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,651
|
|
|
—
|
|
|
—
|
|
|
1,651
|
|
|||||||
Total
|
|
$
|
858,369
|
|
|
$
|
1,164,023
|
|
|
$
|
373,400
|
|
|
$
|
323,378
|
|
|
$
|
18,149
|
|
|
$
|
45,120
|
|
|
$
|
2,782,439
|
|
|
30 – 59 Days Past Due
|
|
60 – 89 Days Past Due
|
|
Greater Than 90 Days
|
|
Total Past Due
|
|
Current
|
|
Total Loans Outstanding
|
|
Loans > 90 Days Past Due and Accruing
|
|
Non-Accrual Loans
|
||||||||||||||||
December 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential real estate
|
$
|
3,300
|
|
|
$
|
2,046
|
|
|
$
|
4,520
|
|
|
$
|
9,866
|
|
|
$
|
983,000
|
|
|
$
|
992,866
|
|
|
$
|
—
|
|
|
$
|
5,492
|
|
Commercial real estate
|
1,794
|
|
|
369
|
|
|
1,108
|
|
|
3,271
|
|
|
1,266,262
|
|
|
1,269,533
|
|
|
—
|
|
|
1,380
|
|
||||||||
Commercial
|
150
|
|
|
19
|
|
|
799
|
|
|
968
|
|
|
380,812
|
|
|
381,780
|
|
|
—
|
|
|
1,279
|
|
||||||||
Home equity
|
907
|
|
|
607
|
|
|
1,476
|
|
|
2,990
|
|
|
324,773
|
|
|
327,763
|
|
|
—
|
|
|
1,846
|
|
||||||||
Consumer
|
67
|
|
|
15
|
|
|
29
|
|
|
111
|
|
|
20,513
|
|
|
20,624
|
|
|
14
|
|
|
15
|
|
||||||||
HPFC
|
—
|
|
|
183
|
|
|
423
|
|
|
606
|
|
|
33,050
|
|
|
33,656
|
|
|
—
|
|
|
518
|
|
||||||||
Total
|
$
|
6,218
|
|
|
$
|
3,239
|
|
|
$
|
8,355
|
|
|
$
|
17,812
|
|
|
$
|
3,008,410
|
|
|
$
|
3,026,222
|
|
|
$
|
14
|
|
|
$
|
10,530
|
|
December 31, 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential real estate
|
$
|
3,871
|
|
|
$
|
1,585
|
|
|
$
|
4,021
|
|
|
$
|
9,477
|
|
|
$
|
848,892
|
|
|
$
|
858,369
|
|
|
$
|
—
|
|
|
$
|
4,979
|
|
Commercial real estate
|
849
|
|
|
323
|
|
|
5,528
|
|
|
6,700
|
|
|
1,157,323
|
|
|
1,164,023
|
|
|
—
|
|
|
5,642
|
|
||||||||
Commercial
|
329
|
|
|
359
|
|
|
1,535
|
|
|
2,223
|
|
|
371,177
|
|
|
373,400
|
|
|
—
|
|
|
2,000
|
|
||||||||
Home equity
|
1,046
|
|
|
173
|
|
|
1,329
|
|
|
2,548
|
|
|
320,830
|
|
|
323,378
|
|
|
—
|
|
|
1,650
|
|
||||||||
Consumer
|
57
|
|
|
10
|
|
|
—
|
|
|
67
|
|
|
18,082
|
|
|
18,149
|
|
|
—
|
|
|
—
|
|
||||||||
HPFC
|
139
|
|
|
1,372
|
|
|
419
|
|
|
1,930
|
|
|
43,190
|
|
|
45,120
|
|
|
—
|
|
|
1,043
|
|
||||||||
Total
|
$
|
6,291
|
|
|
$
|
3,822
|
|
|
$
|
12,832
|
|
|
$
|
22,945
|
|
|
$
|
2,759,494
|
|
|
$
|
2,782,439
|
|
|
$
|
—
|
|
|
$
|
15,314
|
|
|
|
Number of Contracts
|
|
Recorded Investment
|
|
Specific Reserve
|
||||||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||
Residential real estate
|
|
25
|
|
|
24
|
|
|
$
|
3,614
|
|
|
$
|
3,604
|
|
|
$
|
443
|
|
|
$
|
452
|
|
Commercial real estate
|
|
2
|
|
|
3
|
|
|
347
|
|
|
976
|
|
|
23
|
|
|
16
|
|
||||
Commercial
|
|
2
|
|
|
7
|
|
|
141
|
|
|
1,345
|
|
|
—
|
|
|
—
|
|
||||
Consumer and home equity
|
|
2
|
|
|
2
|
|
|
304
|
|
|
307
|
|
|
162
|
|
|
—
|
|
||||
Total
|
|
31
|
|
|
36
|
|
|
$
|
4,406
|
|
|
$
|
6,232
|
|
|
$
|
628
|
|
|
$
|
468
|
|
|
|
Number of Contracts
|
|
Pre-Modification
Outstanding
Recorded Investment
|
|
Post-Modification
Outstanding
Recorded Investment
|
|
Specific Reserve
|
|||||||||||||||||||||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||||||||
Residential real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Maturity concession
|
|
—
|
|
|
2
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
298
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
298
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15
|
|
|
$
|
—
|
|
Interest rate concession
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
134
|
|
|
—
|
|
|
—
|
|
|
145
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Interest rate and maturity concession
|
|
2
|
|
|
1
|
|
|
—
|
|
|
231
|
|
|
148
|
|
|
—
|
|
|
254
|
|
|
156
|
|
|
—
|
|
|
50
|
|
|
30
|
|
|
—
|
|
|||||||||
Payment deferral
|
|
1
|
|
|
—
|
|
|
—
|
|
|
166
|
|
|
—
|
|
|
—
|
|
|
166
|
|
|
—
|
|
|
—
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|||||||||
Commercial:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Maturity concession
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
2,973
|
|
|
—
|
|
|
—
|
|
|
2,973
|
|
|
—
|
|
|
—
|
|
|
1,400
|
|
|||||||||
Home equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest rate and maturity concession
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
315
|
|
|
—
|
|
|
—
|
|
|
315
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total
|
|
3
|
|
|
5
|
|
|
6
|
|
|
$
|
397
|
|
|
$
|
895
|
|
|
$
|
2,973
|
|
|
$
|
420
|
|
|
$
|
914
|
|
|
$
|
2,973
|
|
|
$
|
95
|
|
|
$
|
45
|
|
|
$
|
1,400
|
|
|
|
|
|
|
|
|
|
For the Year Ended
|
||||||||||||
|
|
Recorded Investment
|
|
Unpaid Principal Balance
|
|
Related Allowance
|
|
Average Recorded Investment
|
|
Interest Income Recognized
|
||||||||||
December 31, 2018:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
With related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential real estate
|
|
$
|
3,471
|
|
|
$
|
3,471
|
|
|
$
|
586
|
|
|
$
|
3,591
|
|
|
$
|
127
|
|
Commercial real estate
|
|
131
|
|
|
131
|
|
|
23
|
|
|
1,969
|
|
|
11
|
|
|||||
Commercial
|
|
556
|
|
|
556
|
|
|
53
|
|
|
111
|
|
|
—
|
|
|||||
Home equity
|
|
318
|
|
|
318
|
|
|
162
|
|
|
250
|
|
|
—
|
|
|||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
HPFC
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Ending balance
|
|
4,476
|
|
|
4,476
|
|
|
824
|
|
|
5,921
|
|
|
138
|
|
|||||
Without related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential real estate
|
|
1,291
|
|
|
1,415
|
|
|
—
|
|
|
1,524
|
|
|
34
|
|
|||||
Commercial real estate
|
|
799
|
|
|
975
|
|
|
—
|
|
|
2,269
|
|
|
13
|
|
|||||
Commercial
|
|
230
|
|
|
293
|
|
|
—
|
|
|
1,379
|
|
|
8
|
|
|||||
Home equity
|
|
124
|
|
|
305
|
|
|
—
|
|
|
195
|
|
|
—
|
|
|||||
Consumer
|
|
6
|
|
|
13
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
HPFC
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Ending balance
|
|
2,450
|
|
|
3,001
|
|
|
—
|
|
|
5,368
|
|
|
55
|
|
|||||
Total impaired loans
|
|
$
|
6,926
|
|
|
$
|
7,477
|
|
|
$
|
824
|
|
|
$
|
11,289
|
|
|
$
|
193
|
|
December 31, 2017:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
With related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential real estate
|
|
$
|
3,858
|
|
|
$
|
3,858
|
|
|
$
|
568
|
|
|
$
|
3,177
|
|
|
$
|
131
|
|
Commercial real estate
|
|
5,422
|
|
|
5,422
|
|
|
1,441
|
|
|
8,900
|
|
|
22
|
|
|||||
Commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|||||
Home equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
125
|
|
|
—
|
|
|||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
HPFC
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|||||
Ending balance
|
|
9,280
|
|
|
9,280
|
|
|
2,009
|
|
|
12,257
|
|
|
153
|
|
|||||
Without related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential real estate
|
|
1,313
|
|
|
1,673
|
|
|
—
|
|
|
1,345
|
|
|
15
|
|
|||||
Commercial real estate
|
|
777
|
|
|
1,084
|
|
|
—
|
|
|
1,132
|
|
|
29
|
|
|||||
Commercial
|
|
1,791
|
|
|
2,964
|
|
|
—
|
|
|
1,920
|
|
|
10
|
|
|||||
Home equity
|
|
429
|
|
|
495
|
|
|
—
|
|
|
310
|
|
|
8
|
|
|||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|||||
HPFC
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Ending balance
|
|
4,310
|
|
|
6,216
|
|
|
—
|
|
|
4,709
|
|
|
62
|
|
|||||
Total impaired loans
|
|
$
|
13,590
|
|
|
$
|
15,496
|
|
|
$
|
2,009
|
|
|
$
|
16,966
|
|
|
$
|
215
|
|
|
|
|
|
|
|
|
|
For the Year Ended
|
||||||||||||
|
|
Recorded Investment
|
|
Unpaid Principal Balance
|
|
Related Allowance
|
|
Average Recorded Investment
|
|
Interest Income Recognized
|
||||||||||
December 31, 2016:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
With related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential real estate
|
|
$
|
3,019
|
|
|
$
|
3,019
|
|
|
$
|
483
|
|
|
$
|
3,088
|
|
|
$
|
106
|
|
Commercial real estate
|
|
11,443
|
|
|
11,443
|
|
|
1,373
|
|
|
5,165
|
|
|
—
|
|
|||||
Commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
762
|
|
|
—
|
|
|||||
Home equity
|
|
299
|
|
|
299
|
|
|
86
|
|
|
305
|
|
|
—
|
|
|||||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
HPFC
|
|
97
|
|
|
97
|
|
|
65
|
|
|
98
|
|
|
—
|
|
|||||
Ending balance
|
|
14,858
|
|
|
14,858
|
|
|
2,007
|
|
|
9,418
|
|
|
106
|
|
|||||
Without related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Residential real estate
|
|
1,329
|
|
|
1,800
|
|
|
—
|
|
|
2,057
|
|
|
9
|
|
|||||
Commercial real estate
|
|
1,874
|
|
|
2,369
|
|
|
—
|
|
|
2,214
|
|
|
51
|
|
|||||
Commercial
|
|
2,028
|
|
|
3,209
|
|
|
—
|
|
|
2,507
|
|
|
16
|
|
|||||
Home equity
|
|
158
|
|
|
368
|
|
|
—
|
|
|
180
|
|
|
—
|
|
|||||
Consumer
|
|
7
|
|
|
10
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|||||
HPFC
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Ending balance
|
|
5,396
|
|
|
7,756
|
|
|
—
|
|
|
6,970
|
|
|
76
|
|
|||||
Total impaired loans
|
|
$
|
20,254
|
|
|
$
|
22,614
|
|
|
$
|
2,007
|
|
|
$
|
16,388
|
|
|
$
|
182
|
|
|
|
December 31,
|
||||||||||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||||||||||
|
|
Gross
Carrying
Amount
|
|
Accumulated Amortization
|
|
Net
Carrying
Amount
|
|
Gross
Carrying
Amount
|
|
Accumulated Amortization
|
|
Net
Carrying
Amount
|
||||||||||||
Core deposit intangible
|
|
$
|
23,908
|
|
|
$
|
(19,678
|
)
|
|
$
|
4,230
|
|
|
$
|
23,908
|
|
|
$
|
(18,953
|
)
|
|
$
|
4,955
|
|
Trust relationship intangible
|
|
—
|
|
|
—
|
|
|
—
|
|
|
753
|
|
|
(753
|
)
|
|
—
|
|
||||||
Total
|
|
$
|
23,908
|
|
|
$
|
(19,678
|
)
|
|
$
|
4,230
|
|
|
$
|
24,661
|
|
|
$
|
(19,706
|
)
|
|
$
|
4,955
|
|
|
|
Core Deposit
Intangible
|
||
2019
|
|
$
|
705
|
|
2020
|
|
682
|
|
|
2021
|
|
655
|
|
|
2022
|
|
625
|
|
|
2023
|
|
592
|
|
|
Thereafter
|
|
971
|
|
|
Total
|
|
$
|
4,230
|
|
|
|
2018
|
|
2017
|
||||
Buildings and leasehold improvements
|
|
$
|
39,594
|
|
|
$
|
37,054
|
|
Furniture, fixtures and equipment
|
|
37,210
|
|
|
36,053
|
|
||
Land and land improvements
|
|
3,069
|
|
|
2,985
|
|
||
Total cost
|
|
79,873
|
|
|
76,092
|
|
||
Accumulated depreciation and amortization
|
|
(37,378
|
)
|
|
(34,201
|
)
|
||
Net premises and equipment
|
|
$
|
42,495
|
|
|
$
|
41,891
|
|
|
|
|
|
For The Year Ended
December 31,
|
||||||||||
Fixed Asset Type
|
|
Income Statement Line Item
|
|
2018
|
|
2017
|
|
2016
|
||||||
Furniture, equipment and data
|
|
Furniture, equipment and data processing
|
|
$
|
1,938
|
|
|
$
|
1,874
|
|
|
$
|
1,942
|
|
Premises
|
|
Net occupancy costs
|
|
1,609
|
|
|
1,643
|
|
|
1,757
|
|
|||
Software
|
|
Furniture, equipment and data processing
|
|
218
|
|
|
244
|
|
|
275
|
|
|||
Equipment, data and premises
|
|
Merger and acquisition costs
|
|
—
|
|
|
—
|
|
|
452
|
|
|||
Total
|
|
|
|
$
|
3,765
|
|
|
$
|
3,761
|
|
|
$
|
4,426
|
|
|
Operating
|
|
Capital
|
||||
2019
|
$
|
1,420
|
|
|
$
|
179
|
|
2020
|
941
|
|
|
179
|
|
||
2021
|
726
|
|
|
182
|
|
||
2022
|
539
|
|
|
184
|
|
||
2023
|
434
|
|
|
184
|
|
||
Thereafter
|
1,268
|
|
|
1,592
|
|
||
Total minimum lease payments
|
$
|
5,328
|
|
|
2,500
|
|
|
Less: amount representing interest
(1)
|
|
|
920
|
|
|||
Present value of net minimum lease payments
(2)
|
|
|
$
|
1,580
|
|
(1)
|
Amount necessary to reduce net minimum lease payments to present value calculated at the Company's incremental borrowing rate at lease inception.
|
(2)
|
Reflects the liability reported within long-term borrowings on the consolidated statements of condition.
|
|
As of and For The Year Ended
December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Servicing Assets:
|
|
|
|
|
|
|
|
|
|||
Balance at beginning of year
|
$
|
1,025
|
|
|
$
|
1,210
|
|
|
$
|
2,161
|
|
Capitalized servicing right fees upon sale
(1)
|
—
|
|
|
22
|
|
|
9
|
|
|||
Amortization charged against mortgage servicing fee income
(1)
|
(200
|
)
|
|
(430
|
)
|
|
(734
|
)
|
|||
Valuation adjustment
|
6
|
|
|
223
|
|
|
(226
|
)
|
|||
Balance at end of year
|
$
|
831
|
|
|
$
|
1,025
|
|
|
$
|
1,210
|
|
Valuation Allowance:
|
|
|
|
|
|
|
|
|
|||
Balance at beginning of year
|
$
|
(7
|
)
|
|
$
|
(230
|
)
|
|
$
|
(4
|
)
|
Decrease (increase) in impairment reserve
(1)
|
6
|
|
|
223
|
|
|
(226
|
)
|
|||
Balance at end of year
|
$
|
(1
|
)
|
|
$
|
(7
|
)
|
|
$
|
(230
|
)
|
Fair value, beginning of year
|
$
|
1,766
|
|
|
$
|
1,701
|
|
|
$
|
2,947
|
|
Fair value, end of year
|
$
|
1,677
|
|
|
$
|
1,766
|
|
|
$
|
1,701
|
|
(1)
|
Reported within mortgage banking income, net on the Company's consolidated statements of income.
|
|
Retail
|
|
Brokered
|
|
Total
|
||||||
2019
|
$
|
250,838
|
|
|
$
|
210,369
|
|
|
$
|
461,207
|
|
2020
|
116,397
|
|
|
7,000
|
|
|
123,397
|
|
|||
2021
|
35,235
|
|
|
—
|
|
|
35,235
|
|
|||
2022
|
20,045
|
|
|
—
|
|
|
20,045
|
|
|||
2023
|
15,368
|
|
|
—
|
|
|
15,368
|
|
|||
Thereafter
|
6,029
|
|
|
—
|
|
|
6,029
|
|
|||
Total
|
$
|
443,912
|
|
|
$
|
217,369
|
|
|
$
|
661,281
|
|
|
December 31,
2018
|
|
Contractual Maturity
|
|
December 31,
2017
|
||||||||||||||||||||||||||||||||
|
Outstanding Balance
|
|
Weighted
Average
Contract Rate
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
|
Outstanding Balance
|
|
Weighted
Average
Contract Rate
|
||||||||||||||||||
Short-Term Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
FHLBB borrowings
|
$
|
25,000
|
|
|
|
|
$
|
25,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
250,000
|
|
|
|
||
Customer repurchase agreements
|
245,868
|
|
|
|
|
245,868
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
244,646
|
|
|
|
||||||||||
FHLBB and correspondent bank overnight borrowings
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47,150
|
|
|
|
||||||||||
Total short-term borrowings
|
$
|
270,868
|
|
|
1.43
|
%
|
|
$
|
270,868
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
541,796
|
|
|
1.10
|
%
|
Long-Term Borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
FHLBB borrowings
|
$
|
10,000
|
|
|
1.87
|
%
|
|
$
|
—
|
|
|
$
|
10,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,000
|
|
|
1.87
|
%
|
Capital lease obligation
|
1,580
|
|
|
4.20
|
%
|
|
89
|
|
|
96
|
|
|
106
|
|
|
115
|
|
|
123
|
|
|
1,051
|
|
|
791
|
|
|
4.06
|
%
|
||||||||
Total long-term borrowings
|
$
|
11,580
|
|
|
2.19
|
%
|
|
$
|
89
|
|
|
$
|
10,096
|
|
|
$
|
106
|
|
|
$
|
115
|
|
|
$
|
123
|
|
|
$
|
1,051
|
|
|
$
|
10,791
|
|
|
2.03
|
%
|
Subordinated Debentures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Subordinated debentures
(1)
|
$
|
14,634
|
|
|
5.50
|
%
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,634
|
|
|
$
|
14,580
|
|
|
5.50
|
%
|
CCTA
|
36,083
|
|
|
5.38
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36,083
|
|
|
36,083
|
|
|
5.38
|
%
|
||||||||
UBCT
|
8,350
|
|
|
4.14
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,350
|
|
|
8,248
|
|
|
4.14
|
%
|
||||||||
Total subordinated debentures
|
$
|
59,067
|
|
|
5.23
|
%
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
59,067
|
|
|
$
|
58,911
|
|
|
5.24
|
%
|
(1)
|
The outstanding balance of subordinated debentures was presented net of debt issuance costs of
$366,000
and
$420,000
at December 31, 2018 and 2017, respectively.
|
|
|
December 31,
|
|||||||||||||
|
|
2018
|
|
2017
|
|||||||||||
Stated Maturity
|
|
Outstanding Balance
|
|
Weighted Average Contractual Rate
|
|
|
Outstanding Balance
|
|
Weighted Average Contractual Rate
|
||||||
January 2018
|
|
$
|
—
|
|
|
—
|
|
|
|
$
|
247,150
|
|
|
1.54
|
%
|
February 2018
|
|
—
|
|
|
—
|
|
|
|
50,000
|
|
|
1.54
|
%
|
||
January 2019
|
|
25,000
|
|
|
2.71
|
%
|
|
|
—
|
|
|
—
|
|
||
April 2020
|
|
10,000
|
|
|
1.87
|
%
|
|
|
10,000
|
|
|
1.87
|
%
|
||
Total
|
|
$
|
35,000
|
|
|
|
|
|
$
|
307,150
|
|
|
|
•
|
The Bank had an available line of credit with the FHLBB of
$9.9 million
at
December 31, 2018
and
2017
. This line of credit serves as overdraft protection should the Company overdraw its account with the FHLBB. The interest rate for this line of credit is set daily by the FHLBB.
|
•
|
The Company has an unsecured
$10.0 million
line of credit with PNC Bank that has a maturity date of
December 20, 2019
for which the interest rate is LIBOR-based and is set daily by PNC Bank.
|
•
|
The Company, through the Bank, has an unsecured
$50.0 million
line of credit with PNC Bank for which the interest rate is set daily by PNC Bank.
|
•
|
The Company, through the Bank, has a secured line of credit of
$121.2 million
through the FRB's Discount Window for which the interest rate is set by the FRB daily. At December 31, 2018, the Bank pledged commercial loans with a carrying value of
$176.6 million
and investment securities of
$13,000
.
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Customer Repurchase Agreements
(1)(2)
:
|
|
|
|
|
||||
Obligations of states and political subdivisions
|
|
$
|
1,455
|
|
|
$
|
630
|
|
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
|
|
125,590
|
|
|
98,460
|
|
||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
|
|
118,823
|
|
|
145,556
|
|
||
Total
|
|
$
|
245,868
|
|
|
$
|
244,646
|
|
(1)
|
Presented within short-term borrowings on the consolidated statements of condition.
|
(2)
|
All customer repurchase agreements mature continuously or overnight for the dates indicated.
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
Lending-Related Instruments:
|
|
|
|
|
|
||
Loan origination commitments and unadvanced lines of credit:
|
|
|
|
|
|
||
Home equity
|
$
|
548,784
|
|
|
$
|
477,401
|
|
Commercial and commercial real estate
|
67,235
|
|
|
49,482
|
|
||
Residential
|
36,109
|
|
|
41,368
|
|
||
Letters of credit
|
3,063
|
|
|
2,848
|
|
||
Other commitments
|
2,447
|
|
|
523
|
|
||
Derivative Financial Instruments:
|
|
|
|
||||
Customer loan swaps
|
$
|
833,030
|
|
|
$
|
703,336
|
|
Junior subordinated debt interest rate swaps
|
43,000
|
|
|
43,000
|
|
||
FHLBB advance interest rate swaps
|
25,000
|
|
|
50,000
|
|
||
Fixed-rate mortgage interest rate lock commitments
|
12,077
|
|
|
21,746
|
|
||
Forward delivery commitments
|
4,315
|
|
|
8,065
|
|
|
|
|
|
December 31,
|
||||||||||||||||||||
|
|
|
|
2018
|
|
2017
|
||||||||||||||||||
|
|
Balance Sheet Location
|
|
Number of Positions
|
|
Notional
|
|
Fair Value
|
|
Number of Positions
|
|
Notional
|
|
Fair Value
|
||||||||||
Receive fixed, pay variable
|
|
Accrued interest and other liabilities
|
|
57
|
|
|
$
|
297,624
|
|
|
$
|
(7,841
|
)
|
|
42
|
|
|
$
|
226,884
|
|
|
$
|
(5,036
|
)
|
Receive fixed, pay variable
|
|
Other assets
|
|
25
|
|
|
118,891
|
|
|
3,467
|
|
|
23
|
|
|
124,784
|
|
|
1,799
|
|
||||
Pay fixed, receive variable
|
|
Other assets
|
|
82
|
|
|
416,515
|
|
|
4,374
|
|
|
65
|
|
|
351,668
|
|
|
3,237
|
|
||||
Total
|
|
|
|
164
|
|
|
$
|
833,030
|
|
|
$
|
—
|
|
|
130
|
|
|
$
|
703,336
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
2018
|
|
2017
|
||||||||||||
Trade
Date
|
|
Maturity Date
|
|
Variable Index
Received
|
|
Fixed Rate
Paid
|
|
Presentation on Consolidated Statements of Condition
|
|
Notional
Amount
|
|
Fair
Value
|
|
Notional
Amount
|
|
Fair
Value
|
||||||||
3/18/2009
|
|
6/30/2021
|
|
3-Month USD LIBOR
|
|
5.09%
|
|
Accrued interest and other liabilities
|
|
$
|
10,000
|
|
|
$
|
(272
|
)
|
|
$
|
10,000
|
|
|
$
|
(527
|
)
|
7/8/2009
|
|
6/30/2029
|
|
3-Month USD LIBOR
|
|
5.84%
|
|
Accrued interest and other liabilities
|
|
10,000
|
|
|
(1,655
|
)
|
|
10,000
|
|
|
(2,133
|
)
|
||||
5/6/2010
|
|
6/30/2030
|
|
3-Month USD LIBOR
|
|
5.71%
|
|
Accrued interest and other liabilities
|
|
10,000
|
|
|
(1,636
|
)
|
|
10,000
|
|
|
(2,129
|
)
|
||||
3/14/2011
|
|
3/30/2031
|
|
3-Month USD LIBOR
|
|
4.35%
|
|
Accrued interest and other liabilities
|
|
5,000
|
|
|
(877
|
)
|
|
5,000
|
|
|
(1,137
|
)
|
||||
5/4/2011
|
|
7/7/2031
|
|
3-Month USD LIBOR
|
|
4.14%
|
|
Accrued interest and other liabilities
|
|
8,000
|
|
|
(1,242
|
)
|
|
8,000
|
|
|
(1,645
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
$
|
43,000
|
|
|
$
|
(5,682
|
)
|
|
$
|
43,000
|
|
|
$
|
(7,571
|
)
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
2018
|
|
2017
|
||||||||||||
Trade
Date |
|
Maturity
Date
|
|
Variable Index
Received |
|
Fixed Rate
Paid |
|
Presentation on Consolidated Statements of Condition
|
|
Notional
Amount |
|
Fair
Value
|
|
Notional
Amount |
|
Fair
Value
|
||||||||
2/25/2015
|
|
2/25/2018
|
|
1-Month USD LIBOR
|
|
1.54%
|
|
Other assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
25,000
|
|
|
$
|
20
|
|
2/25/2015
|
|
2/25/2019
|
|
1-Month USD LIBOR
|
|
1.74%
|
|
Other assets
|
|
25,000
|
|
|
30
|
|
|
25,000
|
|
|
1
|
|
||||
|
|
|
|
|
|
|
|
|
|
$
|
25,000
|
|
|
$
|
30
|
|
|
$
|
50,000
|
|
|
$
|
21
|
|
|
|
|
|
December 31,
|
||||||||||||||
|
|
|
|
2018
|
|
2017
|
||||||||||||
|
|
Presentation on Consolidated Statements of Condition
|
|
Notional
|
|
Fair
Value
|
|
Notional
|
|
Fair
Value
|
||||||||
Fixed-rate mortgage interest rate locks
|
|
Other assets
|
|
$
|
8,239
|
|
|
$
|
95
|
|
|
$
|
19,886
|
|
|
$
|
307
|
|
Fixed-rate mortgage interest rate locks
|
|
Accrued interest and other liabilities
|
|
3,838
|
|
|
(28
|
)
|
|
1,860
|
|
|
(22
|
)
|
||||
Total
|
|
|
|
$
|
12,077
|
|
|
$
|
67
|
|
|
$
|
21,746
|
|
|
$
|
285
|
|
|
|
|
|
December 31,
|
||||||||||||||
|
|
|
|
2018
|
|
2017
|
||||||||||||
|
|
Balance Sheet Location
|
|
Notional
|
|
Fair
Value
|
|
Notional
|
|
Fair
Value
|
||||||||
Forward delivery commitments ("best-effort")
|
|
Other assets
|
|
$
|
2,593
|
|
|
$
|
32
|
|
|
$
|
6,692
|
|
|
$
|
158
|
|
Forward delivery commitments ("best-effort")
|
|
Accrued interest and other liabilities
|
|
1,722
|
|
|
(17
|
)
|
|
1,373
|
|
|
(16
|
)
|
||||
Total
|
|
|
|
$
|
4,315
|
|
|
$
|
15
|
|
|
$
|
8,065
|
|
|
$
|
142
|
|
|
|
For The Year Ended
December 31, |
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Derivatives designated as cash flow hedges
|
|
|
|
|
|
|
||||||
Effective portion of unrealized losses recognized within AOCI during the period, net of tax
|
|
$
|
837
|
|
|
$
|
(248
|
)
|
|
$
|
(637
|
)
|
Net reclassification adjustment for effective portion of cash flow hedges included in interest expense, gross
(1)
|
|
$
|
831
|
|
|
$
|
1,592
|
|
|
$
|
2,026
|
|
(1)
|
Reclassified into the consolidated statements of income within interest expense.
|
|
|
|
|
|
|
|
|
Gross Amount Not Offset in the Consolidated Statements of Condition
|
|
|
||||||||||||||
|
|
Gross Amount Recognized in the Consolidated Statements of Condition
|
|
Gross Amount Offset in the Consolidated Statements of Condition
|
|
Net Amount Presented in the Consolidated Statements of Condition
|
|
Financial Instruments Pledged (Received)
(1)
|
|
Cash Collateral Pledged (Received)
(1)
|
|
Net Amount
|
||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Customer loan swaps - dealer bank
|
|
$
|
4,374
|
|
|
$
|
—
|
|
|
$
|
4,374
|
|
|
$
|
—
|
|
|
$
|
(4,374
|
)
|
|
$
|
—
|
|
Customer loan swaps - commercial customer
|
|
3,467
|
|
|
—
|
|
|
3,467
|
|
|
—
|
|
|
—
|
|
|
3,467
|
|
||||||
FHLBB advance interest rate swaps
|
|
30
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|
(30
|
)
|
|
—
|
|
||||||
Total
|
|
$
|
7,871
|
|
|
$
|
—
|
|
|
$
|
7,871
|
|
|
$
|
—
|
|
|
$
|
(4,404
|
)
|
|
$
|
3,467
|
|
Derivative liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Junior subordinated debt interest rate swaps
|
|
$
|
5,682
|
|
|
$
|
—
|
|
|
$
|
5,682
|
|
|
$
|
—
|
|
|
$
|
5,682
|
|
|
$
|
—
|
|
Customer loan swaps - commercial customer
|
|
7,841
|
|
|
—
|
|
|
7,841
|
|
|
—
|
|
|
—
|
|
|
7,841
|
|
||||||
Total
|
|
$
|
13,523
|
|
|
$
|
—
|
|
|
$
|
13,523
|
|
|
$
|
—
|
|
|
$
|
5,682
|
|
|
$
|
7,841
|
|
Customer repurchase agreements
|
|
$
|
245,868
|
|
|
$
|
—
|
|
|
$
|
245,868
|
|
|
$
|
245,868
|
|
|
$
|
—
|
|
|
$
|
—
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Customer loan swaps - dealer bank
|
|
$
|
3,237
|
|
|
$
|
—
|
|
|
$
|
3,237
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,237
|
|
Customer loan swaps - commercial customer
|
|
1,799
|
|
|
—
|
|
|
1,799
|
|
|
—
|
|
|
—
|
|
|
1,799
|
|
||||||
FHLBB advance interest rate swaps
|
|
21
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
21
|
|
||||||
Total
|
|
$
|
5,057
|
|
|
$
|
—
|
|
|
$
|
5,057
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,057
|
|
Derivative liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Junior subordinated debt interest rate swaps
|
|
$
|
7,571
|
|
|
$
|
—
|
|
|
$
|
7,571
|
|
|
$
|
—
|
|
|
$
|
7,571
|
|
|
$
|
—
|
|
Customer loan swaps - commercial customer
|
|
5,036
|
|
|
—
|
|
|
5,036
|
|
|
—
|
|
|
—
|
|
|
5,036
|
|
||||||
Total
|
|
$
|
12,607
|
|
|
$
|
—
|
|
|
$
|
12,607
|
|
|
$
|
—
|
|
|
$
|
7,571
|
|
|
$
|
5,036
|
|
Customer repurchase agreements
|
|
$
|
244,646
|
|
|
$
|
—
|
|
|
$
|
244,646
|
|
|
$
|
244,646
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
The amount presented was the lesser of the amount pledged (received) or the net amount presented in the consolidated statements of condition.
|
|
|
December 31,
2018 |
|
Minimum Regulatory Capital Required for Capital Adequacy plus Capital Conservation Buffer
|
|
Minimum Regulatory Provision To Be "Well Capitalized" Under Prompt Corrective Action Provisions
|
|
December 31,
2017 |
|
Minimum Regulatory Capital Required For Capital Adequacy plus Capital Conservation Buffer
|
|
Minimum Regulatory Provision To Be "Well Capitalized" Under Prompt Corrective Action Provisions
|
||||||||||||||
|
|
Amount
|
|
Ratio
|
|
|
|
Amount
|
|
Ratio
|
|
|
||||||||||||||
Camden National Corporation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total risk-based capital ratio
|
|
$
|
434,331
|
|
|
14.36
|
%
|
|
9.875
|
%
|
|
N/A
|
|
|
$
|
396,451
|
|
|
14.14
|
%
|
|
9.25
|
%
|
|
N/A
|
|
Tier I risk-based capital ratio
|
|
394,597
|
|
|
13.04
|
%
|
|
7.875
|
%
|
|
N/A
|
|
|
357,261
|
|
|
12.74
|
%
|
|
7.25
|
%
|
|
N/A
|
|
||
Common equity Tier I risk-based capital ratio
|
|
351,597
|
|
|
11.62
|
%
|
|
6.375
|
%
|
|
N/A
|
|
|
316,677
|
|
|
11.30
|
%
|
|
5.75
|
%
|
|
N/A
|
|
||
Tier I leverage capital ratio
|
|
394,597
|
|
|
9.53
|
%
|
|
4.00
|
%
|
|
N/A
|
|
|
357,261
|
|
|
9.07
|
%
|
|
4.00
|
%
|
|
N/A
|
|
||
Camden National Bank:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total risk-based capital ratio
|
|
$
|
398,773
|
|
|
13.18
|
%
|
|
9.875
|
%
|
|
10.00
|
%
|
|
$
|
369,540
|
|
|
13.18
|
%
|
|
9.25
|
%
|
|
10.00
|
%
|
Tier I risk-based capital ratio
|
|
374,039
|
|
|
12.36
|
%
|
|
7.875
|
%
|
|
8.00
|
%
|
|
345,350
|
|
|
12.32
|
%
|
|
7.25
|
%
|
|
8.00
|
%
|
||
Common equity Tier I risk-based capital ratio
|
|
374,039
|
|
|
12.36
|
%
|
|
6.375
|
%
|
|
6.50
|
%
|
|
345,350
|
|
|
12.32
|
%
|
|
5.75
|
%
|
|
6.50
|
%
|
||
Tier I leverage capital ratio
|
|
374,039
|
|
|
9.06
|
%
|
|
4.00
|
%
|
|
5.00
|
%
|
|
345,350
|
|
|
8.80
|
%
|
|
4.00
|
%
|
|
5.00
|
%
|
•
|
Service charges on deposit accounts:
Deposit-related fees, include, but are not limited to, overdraft income, service charge income, and other fees generated by the depositor relationship with the Bank. For each depositor relationship, an agreement and related disclosures outline the terms of the contract between the depositor and the Bank, including the assessment of fees and fee structure for its various products. The contract is day-to-day and can be closed by the customer or the Bank at any time. As such, the Company recognizes revenue at the time of the transaction as the performance obligation has been met.
|
•
|
Debit card interchange income:
The Bank has separate contracts with intermediaries and earns interchange revenue and incurs related expenses on debit card transactions of its deposit customers. Income earned and expenses incurred by the Bank are dependent on its depositors' debit card usage, including depositor spend, transaction type and merchant. The rates earned are determined by the intermediaries. The Company determined that although the contract for which revenues are directly earned is with the intermediary rather than the depositor, that an underlying contract with each depositor is required for the generation of debit card interchange income and it is the depositors' debit card usage that drives the revenues earned and related expenses incurred. The contract with the depositor is day-to-day and can be closed by the customer or the Bank at any time. As such, the Company recognizes revenue at the time of the transaction as the performance obligation has been met.
|
•
|
Fiduciary services income:
The Company, through the Bank's wealth management and trust services department, doing business as Camden National Wealth Management, earns fees for its investment management and related services for its clients. Fees earned for its services are largely dependent on assets under management as of the last day of the month and do not contain performance clauses. Should the applicable services contract be terminated by either party, fees for services are earned up to the effective date of contract termination. As such, fiduciary services income is earned and recognized daily.
|
•
|
Investment program income:
Under an investment program offered by the Bank, doing business as Camden Financial Consultant (“Program”), its clients are provided access to brokerage, advisory and insurance products offered through an unaffiliated third party. Certain Bank employees are registered securities representatives and/or registered investment advisor representatives of the third party operating in such capacity under Camden Financial Consultants to provide clients with brokerage, investment advisory and insurance related services. The Bank receives a portion of the commissions and fees received by the unaffiliated third party brokerage firm from the sale of investment products and investment advisory services in accordance with the terms of the contract between the two parties.
|
•
|
Dividend yield is based on the dividend rate of the Company’s stock at the date of grant.
|
•
|
Risk-free interest rate is based on the U.S. Treasury bond rate with a term equaling the expected life of the granted options.
|
•
|
Expected volatility is based on the historical volatility of the Company’s stock price calculated over the expected life of the option.
|
•
|
Expected life represents the period of time that granted options are expected to be outstanding based on historical trends.
|
|
December 31,
|
||||||||
|
2018
|
|
2017
|
|
2016
|
||||
Weighted-average dividend yield
|
2.36
|
%
|
|
N/A
|
|
3.12
|
%
|
||
Weighted-average risk-free interest rate
|
2.38
|
%
|
|
N/A
|
|
1.52
|
%
|
||
Weighted-average expected volatility
|
22.80
|
%
|
|
N/A
|
|
29.64
|
%
|
||
Weighted-average expected life (in years)
|
5.3
|
|
|
N/A
|
|
5.3
|
|
||
Weighted-average fair value of options granted
|
$
|
7.78
|
|
|
N/A
|
|
$
|
5.17
|
|
|
|
Number of Options
|
|
Weighted-Average
Exercise Price per Option
|
|
Weighted-Average
Remaining
Contractual Term
(Years)
|
|
Aggregate Intrinsic Value
|
|||||
Options outstanding at January 1, 2018
|
|
43,077
|
|
|
$
|
21.00
|
|
|
|
|
|
||
Granted
|
|
1,000
|
|
|
42.44
|
|
|
|
|
|
|
||
Exercised
|
|
(15,975
|
)
|
|
19.64
|
|
|
|
|
|
|
||
Forfeited
|
|
(750
|
)
|
|
22.40
|
|
|
|
|
|
|||
Expired
|
|
—
|
|
|
—
|
|
|
|
|
|
|||
Options outstanding at December 31, 2018
|
|
27,352
|
|
|
$
|
22.53
|
|
|
3.4
|
|
$
|
374
|
|
Options exercisable at December 31, 2018
|
|
24,252
|
|
|
$
|
21.44
|
|
|
2.9
|
|
$
|
352
|
|
|
Options
|
|
Weighted-Average
Grant Date
Fair Value per Option
|
|||
Nonvested at January 1, 2018
|
3,450
|
|
|
$
|
6.11
|
|
Granted
|
1,000
|
|
|
7.78
|
|
|
Vested
|
(1,350
|
)
|
|
6.85
|
|
|
Forfeited
|
—
|
|
|
—
|
|
|
Nonvested at December 31, 2018
|
3,100
|
|
|
$
|
6.32
|
|
|
For The Year Ended
December 31, |
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Compensation expense
|
$
|
263
|
|
|
$
|
124
|
|
|
$
|
—
|
|
Income tax benefit
|
57
|
|
|
27
|
|
|
—
|
|
|||
Fair value of grants vested
|
149
|
|
|
—
|
|
|
—
|
|
|
|
Number of Units
|
|
Weighted-Average
Grant Date
Fair Value per Unit
|
|
Weighted-Average
Remaining
Contractual Term
(Years)
|
|
Aggregate Intrinsic Value
|
|
Unrecognized
Compensation
|
|||||||
Nonvested at January 1, 2018
|
|
17,477
|
|
|
$
|
43.04
|
|
|
|
|
|
|
|
|
|||
Granted
|
|
19,695
|
|
|
45.06
|
|
|
|
|
|
|
|
|
||||
Vested
|
|
(3,455
|
)
|
|
43.04
|
|
|
|
|
|
|
|
|||||
Forfeited
|
|
(3,492
|
)
|
|
44.13
|
|
|
|
|
|
|
|
|||||
Nonvested at December 31, 2018
|
|
30,225
|
|
|
$
|
44.23
|
|
|
3.7
|
|
$
|
1,087
|
|
|
$
|
1,090
|
|
|
For The Year Ended
December 31, |
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Compensation expense
|
$
|
916
|
|
|
$
|
762
|
|
|
$
|
703
|
|
Income tax benefit
|
197
|
|
|
164
|
|
|
246
|
|
|||
Fair value of grants vested
|
931
|
|
|
702
|
|
|
603
|
|
|
|
Number of Shares
|
|
Weighted-Average
Grant Date
Fair Value per Share
|
|
Weighted-Average
Remaining
Contractual Term
(Years)
|
|
Aggregate Intrinsic Value
|
|
Unrecognized
Compensation
|
|||||||
Nonvested at January 1, 2018
|
|
36,325
|
|
|
$
|
32.56
|
|
|
|
|
|
|
|
|
|||
Granted
|
|
17,033
|
|
|
44.19
|
|
|
|
|
|
|
|
|
||||
Vested
|
|
(26,527
|
)
|
|
35.11
|
|
|
|
|
|
|
|
|||||
Forfeited
|
|
(4,050
|
)
|
|
32.96
|
|
|
|
|
|
|
|
|||||
Nonvested at December 31, 2018
|
|
22,781
|
|
|
$
|
38.21
|
|
|
1.8
|
|
$
|
819
|
|
|
$
|
531
|
|
|
For The Year Ended
December 31, |
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Compensation expense
|
$
|
104
|
|
|
$
|
97
|
|
|
$
|
102
|
|
Income tax benefit
|
22
|
|
|
21
|
|
|
36
|
|
|||
Fair value of grants vested
|
130
|
|
|
91
|
|
|
57
|
|
|
|
Number of Shares
|
|
Weighted-Average
Grant Date
Fair Value per Share
|
|
Weighted-Average
Remaining
Contractual Term
(Years)
|
|
Aggregate Intrinsic Value
|
|
Unrecognized
Compensation
|
|||||||
Nonvested at January 1, 2018
|
|
20,219
|
|
|
$
|
9.77
|
|
|
|
|
|
|
|
|
|||
Granted
|
|
9,372
|
|
|
14.85
|
|
|
|
|
|
|
|
|
||||
Vested
|
|
(15,207
|
)
|
|
8.56
|
|
|
|
|
|
|
|
|||||
Forfeited
|
|
(1,371
|
)
|
|
14.34
|
|
|
|
|
|
|
|
|||||
Nonvested at December 31, 2018
|
|
13,013
|
|
|
$
|
14.35
|
|
|
0.8
|
|
$
|
84
|
|
|
$
|
71
|
|
|
For The Year Ended
December 31, |
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Compensation expense
|
$
|
291
|
|
|
$
|
370
|
|
|
$
|
1,080
|
|
Related income tax benefit
|
63
|
|
|
80
|
|
|
378
|
|
|||
Fair value of grants vested
|
284
|
|
|
843
|
|
|
725
|
|
|
|
Number of Shares
|
|
Weighted-Average
Grant Date
Fair Value per Share
|
|
Weighted-Average
Remaining
Contractual Term
(Years)
|
|
Aggregate Intrinsic Value
|
|
Unrecognized
Compensation
|
|||||||
Nonvested at January 1, 2018
|
|
31,623
|
|
|
$
|
35.60
|
|
|
|
|
|
|
|
|
|||
Granted
|
|
14,886
|
|
|
44.56
|
|
|
|
|
|
|
|
|
||||
Vested
|
|
(9,844
|
)
|
|
28.87
|
|
|
|
|
|
|
|
|||||
Forfeited
|
|
(10,288
|
)
|
|
32.75
|
|
|
|
|
|
|
|
|||||
Nonvested at December 31, 2018
|
|
26,377
|
|
|
$
|
44.28
|
|
|
1.7
|
|
$
|
949
|
|
|
$
|
314
|
|
|
For The Year Ended
December 31, |
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Compensation expense
|
$
|
106
|
|
|
$
|
97
|
|
|
$
|
81
|
|
Related income tax benefit
|
23
|
|
|
21
|
|
|
28
|
|
|||
Fair value of grants vested
|
105
|
|
|
90
|
|
|
75
|
|
|
|
Number of Deferred Stock Awards
|
|
Weighted-Average
Grant Date
Fair Value per Award
|
|
Weighted-Average
Remaining
Contractual Term
(Years)
|
|
Aggregate Intrinsic Value
|
|
Unrecognized
Compensation
|
|||||||
Nonvested at January 1, 2018
|
|
10,048
|
|
|
$
|
25.52
|
|
|
|
|
|
|
|
|
|||
Granted
|
|
3,434
|
|
|
45.23
|
|
|
|
|
|
|
|
|
||||
Vested
|
|
(2,899
|
)
|
|
36.46
|
|
|
|
|
|
|
|
|||||
Forfeited
|
|
(613
|
)
|
|
41.56
|
|
|
|
|
|
|
|
|||||
Nonvested at December 31, 2018
|
|
9,970
|
|
|
$
|
28.16
|
|
|
10.9
|
|
$
|
359
|
|
|
$
|
251
|
|
|
SERP
|
|
Other Postretirement
Benefits
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Benefit obligations:
|
|
|
|
|
|
|
|
|
|
|
|||||
Beginning of year
|
$
|
13,790
|
|
|
$
|
11,523
|
|
|
$
|
3,791
|
|
|
$
|
3,635
|
|
Service cost
|
446
|
|
|
335
|
|
|
46
|
|
|
53
|
|
||||
Interest cost
|
488
|
|
|
452
|
|
|
132
|
|
|
144
|
|
||||
Actuarial (gain) loss
|
(1,534
|
)
|
|
1,955
|
|
|
(209
|
)
|
|
110
|
|
||||
Benefits paid
|
(473
|
)
|
|
(475
|
)
|
|
(144
|
)
|
|
(151
|
)
|
||||
End of year
|
12,717
|
|
|
13,790
|
|
|
3,616
|
|
|
3,791
|
|
||||
Fair value of plan assets:
|
|
|
|
|
|
|
|
||||||||
Beginning of year
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Employer contributions
|
473
|
|
|
475
|
|
|
144
|
|
|
151
|
|
||||
Benefits paid
|
(473
|
)
|
|
(475
|
)
|
|
(144
|
)
|
|
(151
|
)
|
||||
End of year
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Unfunded status at end of year
(1)
|
$
|
12,717
|
|
|
$
|
13,790
|
|
|
$
|
3,616
|
|
|
$
|
3,791
|
|
Amounts recognized in AOCI, net of tax:
|
|
|
|
|
|
|
|
||||||||
Net actuarial loss
|
$
|
1,859
|
|
|
$
|
3,504
|
|
|
$
|
449
|
|
|
$
|
654
|
|
Prior service credit
|
—
|
|
|
—
|
|
|
(151
|
)
|
|
(170
|
)
|
||||
Total
|
$
|
1,859
|
|
|
$
|
3,504
|
|
|
$
|
298
|
|
|
$
|
484
|
|
(1)
|
Presented within other liabilities on the consolidated statements of condition.
|
|
SERP
|
|
Other Postretirement
Benefits
|
||||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|
2016
|
||||||||||||
Net periodic benefit cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Service cost
(1)
|
$
|
446
|
|
|
$
|
335
|
|
|
$
|
308
|
|
|
$
|
46
|
|
|
$
|
53
|
|
|
$
|
59
|
|
Interest cost
(2)
|
488
|
|
|
452
|
|
|
432
|
|
|
132
|
|
|
144
|
|
|
151
|
|
||||||
Recognized net actuarial loss
(2)
|
561
|
|
|
246
|
|
|
220
|
|
|
52
|
|
|
41
|
|
|
30
|
|
||||||
Amortization of prior service cost (credit)
(2)
|
—
|
|
|
—
|
|
|
7
|
|
|
(24
|
)
|
|
(24
|
)
|
|
(22
|
)
|
||||||
Net periodic benefit cost
|
1,495
|
|
|
1,033
|
|
|
967
|
|
|
206
|
|
|
214
|
|
|
218
|
|
||||||
Changes in funded status recognized in OCI, before taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net actuarial (gain) loss arising during period
|
(1,534
|
)
|
|
1,955
|
|
|
219
|
|
|
(209
|
)
|
|
110
|
|
|
143
|
|
||||||
Reclassifications to net periodic benefit cost:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amortization of net unrecognized actuarial loss
|
(561
|
)
|
|
(246
|
)
|
|
(220
|
)
|
|
(52
|
)
|
|
(41
|
)
|
|
(30
|
)
|
||||||
Amortization of prior service (cost) credit
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
24
|
|
|
24
|
|
|
22
|
|
||||||
Total recognized in OCI, before taxes
|
(2,095
|
)
|
|
1,709
|
|
|
(8
|
)
|
|
(237
|
)
|
|
93
|
|
|
135
|
|
||||||
Total recognized in net periodic benefit cost and OCI, before taxes
|
$
|
(600
|
)
|
|
$
|
2,742
|
|
|
$
|
959
|
|
|
$
|
(31
|
)
|
|
$
|
307
|
|
|
$
|
353
|
|
(1)
|
Presented in salaries and employee benefits on the consolidated statements of income.
|
(2)
|
Presented in other expenses on the consolidated statements of income.
|
|
SERP
|
|
Other Postretirement
Benefits
|
||||||||||||||
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|
2016
|
||||||
Weighted-average assumptions as of end of year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discount rate for benefit obligation
|
4.2
|
%
|
|
3.6
|
%
|
|
4.0
|
%
|
|
4.2
|
%
|
|
3.6
|
%
|
|
4.0
|
%
|
Discount rate for net periodic benefit cost
|
3.6
|
%
|
|
4.0
|
%
|
|
4.0
|
%
|
|
3.6
|
%
|
|
4.0
|
%
|
|
4.5
|
%
|
Rate of compensation increase for benefit obligation
|
3.0
|
%
|
|
5.0
|
%
|
|
4.0
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
Rate of compensation increase for net periodic benefit cost
|
3.0
|
%
|
|
5.0
|
%
|
|
4.0
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
Health care cost trend rate assumed for future years
|
—
|
|
|
—
|
|
|
—
|
|
|
6.0
|
%
|
|
6.5
|
%
|
|
7.0
|
%
|
|
SERP
|
|
Other Postretirement Benefits
|
||||
2019
|
$
|
477
|
|
|
$
|
166
|
|
2020
|
486
|
|
|
175
|
|
||
2021
|
536
|
|
|
183
|
|
||
2022
|
566
|
|
|
191
|
|
||
2023
|
526
|
|
|
197
|
|
||
Next 5 years
|
2,149
|
|
|
1,102
|
|
|
For The Year Ended
December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Current:
|
|
|
|
|
|
|
|
|
|||
Federal
|
$
|
14,102
|
|
|
$
|
14,529
|
|
|
$
|
17,854
|
|
State
|
1,206
|
|
|
1,289
|
|
|
930
|
|
|||
|
15,308
|
|
|
15,818
|
|
|
18,784
|
|
|||
Deferred:
|
|
|
|
|
|
|
|
|
|||
Change in federal corporate income tax rate
(1)
|
—
|
|
|
14,263
|
|
|
—
|
|
|||
Federal
|
(2,541
|
)
|
|
4,117
|
|
|
(1,258
|
)
|
|||
State
|
(61
|
)
|
|
(320
|
)
|
|
(54
|
)
|
|||
|
(2,602
|
)
|
|
18,060
|
|
|
(1,312
|
)
|
|||
Income tax expense
|
$
|
12,706
|
|
|
$
|
33,878
|
|
|
$
|
17,472
|
|
|
For The Year Ended
December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Computed tax expense
(1)
|
$
|
13,813
|
|
|
$
|
21,824
|
|
|
$
|
20,139
|
|
Increase (reduction) in income taxes resulting from:
|
|
|
|
|
|
||||||
Change in federal corporate income tax rate
(1)
|
—
|
|
|
14,263
|
|
|
—
|
|
|||
State taxes, net of federal benefit
|
905
|
|
|
630
|
|
|
565
|
|
|||
Tax exempt income
|
(741
|
)
|
|
(1,291
|
)
|
|
(1,312
|
)
|
|||
Income from life insurance
|
(510
|
)
|
|
(829
|
)
|
|
(908
|
)
|
|||
Low income housing credits
|
(465
|
)
|
|
(366
|
)
|
|
(376
|
)
|
|||
Share-based awards
|
(150
|
)
|
|
(390
|
)
|
|
(701
|
)
|
|||
Other
|
(146
|
)
|
|
37
|
|
|
65
|
|
|||
Income tax expense
|
$
|
12,706
|
|
|
$
|
33,878
|
|
|
$
|
17,472
|
|
Income before income taxes
|
$
|
65,777
|
|
|
$
|
62,354
|
|
|
$
|
57,539
|
|
Effective tax rate
|
19.3
|
%
|
|
54.3
|
%
|
|
30.4
|
%
|
(1)
|
On December 22, 2017, the Tax Act was enacted, reducing the U.S. federal corporate income tax rate from 35.0% to 21.0%. The Company recognized the effect of the tax law changes in the period of enactment, which resulted in a reduction to net deferred tax assets and a corresponding charge to income tax expense of
$14.3 million
.
|
|
December 31,
|
||||||||||||||
|
2018
|
|
2017
|
||||||||||||
|
Asset
|
|
Liability
|
|
Asset
|
|
Liability
|
||||||||
Net operating loss and tax credit carryforward
|
$
|
11,250
|
|
|
$
|
—
|
|
|
$
|
12,078
|
|
|
$
|
—
|
|
Allowance for loan losses
|
5,318
|
|
|
—
|
|
|
5,201
|
|
|
—
|
|
||||
Net unrealized losses on AFS securities
|
4,882
|
|
|
—
|
|
|
2,821
|
|
|
—
|
|
||||
Pension and other benefits
|
3,881
|
|
|
—
|
|
|
4,455
|
|
|
—
|
|
||||
Net unrealized losses on derivative instruments
|
1,215
|
|
|
—
|
|
|
1,623
|
|
|
—
|
|
||||
Deferred compensation and benefits
|
927
|
|
|
—
|
|
|
1,199
|
|
|
—
|
|
||||
Depreciation
|
—
|
|
|
(2,913
|
)
|
|
—
|
|
|
(2,857
|
)
|
||||
Deferred loan origination fees
|
—
|
|
|
(1,860
|
)
|
|
—
|
|
|
(1,510
|
)
|
||||
Other
|
353
|
|
|
—
|
|
|
—
|
|
|
(234
|
)
|
||||
|
27,826
|
|
|
(4,773
|
)
|
|
27,377
|
|
|
(4,601
|
)
|
||||
Valuation allowance on deferred tax assets
|
|
|
—
|
|
|
|
|
—
|
|
||||||
Net deferred tax assets
|
|
|
$
|
23,053
|
|
|
|
|
$
|
22,776
|
|
|
For The Year Ended
December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Net income
|
$
|
53,071
|
|
|
$
|
28,476
|
|
|
$
|
40,067
|
|
Dividends and undistributed earnings allocated to participating securities
(1)
|
(148
|
)
|
|
(118
|
)
|
|
(189
|
)
|
|||
Net income available to common shareholders
|
$
|
52,923
|
|
|
$
|
28,358
|
|
|
$
|
39,878
|
|
Weighted-average common shares outstanding for basic EPS
|
15,571,387
|
|
|
15,509,665
|
|
|
15,422,160
|
|
|||
Dilutive effect of stock-based awards
(2)
|
54,916
|
|
|
78,682
|
|
|
82,079
|
|
|||
Weighted-average common and potential common shares for diluted EPS
|
15,626,303
|
|
|
15,588,347
|
|
|
15,504,239
|
|
|||
Earnings per common share:
|
|
|
|
|
|
|
|
|
|||
Basic EPS
|
$
|
3.40
|
|
|
$
|
1.83
|
|
|
$
|
2.59
|
|
Diluted EPS
|
$
|
3.39
|
|
|
$
|
1.82
|
|
|
$
|
2.57
|
|
(1)
|
Represents dividends paid and undistributed earnings allocated to nonvested stock-based awards that contain non-forfeitable rights to dividends.
|
(2)
|
Represents the effect of the assumed exercise of stock options, vesting of restricted shares and restricted stock units, and issuance of LTIP awards that have met the performance criteria, utilizing the treasury stock method.
|
Level 1
:
|
Valuation is based upon unadjusted quoted prices in active markets for identical assets and liabilities that the entity has the ability to access as of the measurement date.
|
Level 2
:
|
Valuation is determined from quoted prices for similar assets or liabilities in active markets, from quoted prices for identical or similar instruments in markets that are not active or by model-based techniques in which all significant inputs are observable in the market.
|
Level 3
:
|
Valuation is derived from model-based and other techniques in which at least one significant input is unobservable and which may be based on the Company’s own estimates about the assumptions that market participants would use to value the asset or liability.
|
|
Fair Value
|
|
Readily Available Market Prices
(Level 1)
|
|
Observable Market Data
(Level 2)
|
|
Company Determined Fair Value
(Level 3)
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans held for sale
|
$
|
4,403
|
|
|
$
|
—
|
|
|
$
|
4,403
|
|
|
$
|
—
|
|
AFS investments:
|
|
|
|
|
|
|
|
|
|
||||||
Obligations of states and political subdivisions
|
93,752
|
|
|
—
|
|
|
93,752
|
|
|
—
|
|
||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
|
453,672
|
|
|
—
|
|
|
453,672
|
|
|
—
|
|
||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
|
342,894
|
|
|
—
|
|
|
342,894
|
|
|
—
|
|
||||
Subordinated corporate bonds
|
20,374
|
|
|
—
|
|
|
20,374
|
|
|
—
|
|
||||
Equity securities - bank stock
|
746
|
|
|
—
|
|
|
746
|
|
|
—
|
|
||||
Customer loan swaps
|
7,841
|
|
|
—
|
|
|
7,841
|
|
|
—
|
|
||||
Fixed-rate mortgage interest rate lock commitments
|
95
|
|
|
—
|
|
|
95
|
|
|
—
|
|
||||
Forward delivery commitments
|
32
|
|
|
—
|
|
|
32
|
|
|
—
|
|
||||
FHLBB advance interest rate swaps
|
30
|
|
|
—
|
|
|
30
|
|
|
—
|
|
||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||
Junior subordinated debt interest rate swaps
|
$
|
5,682
|
|
|
$
|
—
|
|
|
$
|
5,682
|
|
|
$
|
—
|
|
Customer loan swaps
|
7,841
|
|
|
—
|
|
|
7,841
|
|
|
—
|
|
||||
Fixed-rate mortgage interest rate lock commitments
|
28
|
|
|
—
|
|
|
28
|
|
|
—
|
|
||||
Forward delivery commitments
|
17
|
|
|
—
|
|
|
17
|
|
|
—
|
|
||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans held for sale
|
$
|
8,103
|
|
|
$
|
—
|
|
|
$
|
8,103
|
|
|
$
|
—
|
|
AFS investments:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Obligations of states and political subdivisions
|
7,335
|
|
|
—
|
|
|
7,335
|
|
|
—
|
|
||||
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises
|
503,302
|
|
|
—
|
|
|
503,302
|
|
|
—
|
|
||||
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises
|
272,799
|
|
|
—
|
|
|
272,799
|
|
|
—
|
|
||||
Subordinated corporate bonds
|
5,657
|
|
|
—
|
|
|
5,657
|
|
|
—
|
|
||||
Equity investments
|
806
|
|
|
—
|
|
|
806
|
|
|
—
|
|
||||
Customer loan swaps
|
5,036
|
|
|
—
|
|
|
5,036
|
|
|
—
|
|
||||
Fixed-rate mortgage interest rate lock commitments
|
307
|
|
|
—
|
|
|
307
|
|
|
—
|
|
||||
Forward delivery commitments
|
158
|
|
|
—
|
|
|
158
|
|
|
—
|
|
||||
FHLBB advance interest rate swaps
|
21
|
|
|
—
|
|
|
21
|
|
|
—
|
|
||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Junior subordinated debt interest rate swaps
|
$
|
7,571
|
|
|
$
|
—
|
|
|
$
|
7,571
|
|
|
$
|
—
|
|
Customer loan swaps
|
5,036
|
|
|
—
|
|
|
5,036
|
|
|
—
|
|
||||
Fixed-rate mortgage interest rate lock commitments
|
22
|
|
|
—
|
|
|
22
|
|
|
—
|
|
||||
Forward delivery commitments
|
16
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
Fair Value
|
|
Readily Available Market Prices
(Level 1)
|
|
Observable Market Data
(Level 2)
|
|
Company Determined
Fair Value
(Level 3)
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|||||
Collateral-dependent impaired loans
|
$
|
522
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
522
|
|
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|||||
Collateral-dependent impaired loans
|
$
|
3,696
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,696
|
|
Non-financial assets:
|
|
|
|
|
|
|
|
||||||||
OREO
|
130
|
|
|
—
|
|
|
—
|
|
|
130
|
|
|
Fair Value
|
|
Valuation Methodology
|
|
Unobservable input
|
|
Discount Range (Weighted-Average)
|
|||
December 31, 2018
|
|
|
|
|
|
|
|
|
||
Collateral-dependent impaired loans:
|
|
|
|
|
|
|
|
|
|
|
Partially charged-off
|
$
|
50
|
|
|
Market approach appraisal of collateral
|
|
Management adjustment
of appraisal
|
|
0%
|
(0%)
|
|
|
|
|
|
Estimated selling costs
|
|
10%
|
(10%)
|
||
Specifically reserved
|
472
|
|
|
Market approach appraisal of collateral
|
|
Management adjustment
of appraisal
|
|
0%
|
(0%)
|
|
|
|
|
|
|
Estimated selling costs
|
|
10%
|
(10%)
|
||
December 31, 2017
|
|
|
|
|
|
|
|
|
||
Collateral-dependent impaired loans:
|
|
|
|
|
|
|
|
|
|
|
Partially charged-off
|
$
|
86
|
|
|
Market approach appraisal of collateral
|
|
Management adjustment
of appraisal
|
|
0 - 50%
|
(18%)
|
|
|
|
|
|
|
Estimated selling costs
|
|
0 - 10%
|
(6%)
|
|
Specifically reserved
|
3,610
|
|
|
Market approach appraisal of collateral
|
|
Management adjustment
of appraisal
|
|
0%
|
(0%)
|
|
|
|
|
|
|
Estimated selling costs
|
|
10%
|
(10%)
|
||
OREO
|
130
|
|
|
Market approach appraisal of collateral
|
|
Management adjustment
of appraisal
|
|
20%
|
(20%)
|
|
|
|
|
|
|
Estimated selling costs
|
|
10%
|
(10%)
|
|
Carrying Amount
|
|
Fair Value
|
|
Readily Available Market Prices
(Level 1)
|
|
Observable Market Prices
(Level 2)
|
|
Company Determined Market Prices
(Level 3)
|
||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
HTM securities
|
$
|
1,307
|
|
|
$
|
1,291
|
|
|
$
|
—
|
|
|
$
|
1,291
|
|
|
$
|
—
|
|
Residential real estate loans
(1)
|
986,795
|
|
|
957,957
|
|
|
—
|
|
|
—
|
|
|
957,957
|
|
|||||
Commercial real estate loans
(1)
|
1,257,879
|
|
|
1,218,436
|
|
|
—
|
|
|
—
|
|
|
1,218,436
|
|
|||||
Commercial loans
(1)(2)
|
411,479
|
|
|
404,805
|
|
|
—
|
|
|
—
|
|
|
404,805
|
|
|||||
Home equity loans
(1)
|
324,967
|
|
|
317,359
|
|
|
—
|
|
|
—
|
|
|
317,359
|
|
|||||
Consumer loans
(1)
|
20,390
|
|
|
18,969
|
|
|
—
|
|
|
—
|
|
|
18,969
|
|
|||||
Servicing assets
|
831
|
|
|
1,677
|
|
|
—
|
|
|
—
|
|
|
1,677
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Time deposits
|
$
|
661,281
|
|
|
$
|
654,954
|
|
|
$
|
—
|
|
|
$
|
654,954
|
|
|
$
|
—
|
|
Short-term borrowings
|
270,868
|
|
|
270,598
|
|
|
—
|
|
|
270,598
|
|
|
—
|
|
|||||
Long-term borrowings
|
11,580
|
|
|
11,573
|
|
|
—
|
|
|
11,573
|
|
|
—
|
|
|||||
Subordinated debentures
|
59,067
|
|
|
49,060
|
|
|
—
|
|
|
49,060
|
|
|
—
|
|
|||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
HTM securities
|
$
|
94,073
|
|
|
$
|
94,913
|
|
|
$
|
—
|
|
|
$
|
94,913
|
|
|
$
|
—
|
|
Residential real estate loans
(1)
|
853,283
|
|
|
853,056
|
|
|
—
|
|
|
—
|
|
|
853,056
|
|
|||||
Commercial real estate loans
(1)
|
1,152,160
|
|
|
1,115,618
|
|
|
—
|
|
|
—
|
|
|
1,115,618
|
|
|||||
Commercial loans
(1)(2)
|
413,898
|
|
|
401,902
|
|
|
—
|
|
|
—
|
|
|
401,902
|
|
|||||
Home equity loans
(1)
|
321,011
|
|
|
318,230
|
|
|
—
|
|
|
—
|
|
|
318,230
|
|
|||||
Consumer loans
(1)
|
17,916
|
|
|
17,335
|
|
|
—
|
|
|
—
|
|
|
17,335
|
|
|||||
Servicing assets
|
1,025
|
|
|
1,766
|
|
|
—
|
|
|
—
|
|
|
1,766
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Time deposits
|
$
|
517,032
|
|
|
$
|
512,483
|
|
|
$
|
—
|
|
|
$
|
512,483
|
|
|
$
|
—
|
|
Short-term borrowings
|
541,796
|
|
|
541,605
|
|
|
—
|
|
|
541,605
|
|
|
—
|
|
|||||
Long-term borrowings
|
10,791
|
|
|
10,777
|
|
|
—
|
|
|
10,777
|
|
|
—
|
|
|||||
Subordinated debentures
|
58,911
|
|
|
44,333
|
|
|
—
|
|
|
44,333
|
|
|
—
|
|
(1)
|
The presented carrying amount is net of the allocated ALL.
|
(2)
|
Includes the HPFC loan portfolio.
|
|
December 31,
|
||||||
|
2018
|
|
2017
|
||||
ASSETS
|
|
|
|
|
|
||
Cash
|
$
|
32,367
|
|
|
$
|
29,365
|
|
Investment in subsidiary
|
464,885
|
|
|
444,235
|
|
||
Receivable from subsidiary
|
48
|
|
|
107
|
|
||
Other assets
|
15,458
|
|
|
14,806
|
|
||
Total assets
|
$
|
512,758
|
|
|
$
|
488,513
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
||
Subordinated debentures
|
$
|
59,067
|
|
|
$
|
58,911
|
|
Due to subsidiary
|
40
|
|
|
17
|
|
||
Other liabilities
|
17,826
|
|
|
26,172
|
|
||
Shareholders’ equity
|
435,825
|
|
|
403,413
|
|
||
Total liabilities and shareholders’ equity
|
$
|
512,758
|
|
|
$
|
488,513
|
|
|
For The Year Ended
December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Operating Income
|
|
|
|
|
|
|
|
|
|||
Dividend income from subsidiary
|
$
|
28,100
|
|
|
$
|
16,800
|
|
|
$
|
16,000
|
|
Other income
|
283
|
|
|
145
|
|
|
239
|
|
|||
Total operating income
|
28,383
|
|
|
16,945
|
|
|
16,239
|
|
|||
Operating Expenses
|
|
|
|
|
|
|
|
|
|||
Interest on borrowings
|
3,415
|
|
|
3,408
|
|
|
3,415
|
|
|||
Fees to Bank
|
160
|
|
|
160
|
|
|
160
|
|
|||
Other operating expenses
|
569
|
|
|
592
|
|
|
748
|
|
|||
Total operating expenses
|
4,144
|
|
|
4,160
|
|
|
4,323
|
|
|||
Income before equity in undistributed income of subsidiaries and income taxes
|
24,239
|
|
|
12,785
|
|
|
11,916
|
|
|||
Equity in undistributed income of subsidiaries
|
27,971
|
|
|
17,405
|
|
|
26,773
|
|
|||
Income before income taxes
|
52,210
|
|
|
30,190
|
|
|
38,689
|
|
|||
Income tax benefit (expense)
|
861
|
|
|
(1,714
|
)
|
|
1,378
|
|
|||
Net Income
|
$
|
53,071
|
|
|
$
|
28,476
|
|
|
$
|
40,067
|
|
|
For The Year Ended
December 31,
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|||
Net income
|
$
|
53,071
|
|
|
$
|
28,476
|
|
|
$
|
40,067
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Equity in undistributed income of subsidiaries
|
(27,971
|
)
|
|
(17,405
|
)
|
|
(26,655
|
)
|
|||
Gain on sale of investment securities
|
—
|
|
|
(32
|
)
|
|
(4
|
)
|
|||
(Increase) decrease in other assets
|
(1,772
|
)
|
|
(1,930
|
)
|
|
1,213
|
|
|||
Increase (decrease) in due to subsidiaries
|
82
|
|
|
(20
|
)
|
|
640
|
|
|||
Increase (decrease) in other liabilities
|
(4,763
|
)
|
|
3,721
|
|
|
(2,519
|
)
|
|||
Net cash provided by operating activities
|
18,647
|
|
|
12,810
|
|
|
12,742
|
|
|||
Investing Activities
|
|
|
|
|
|
|
|
|
|||
Proceeds from sale of investments
|
214
|
|
|
110
|
|
|
84
|
|
|||
Net cash provided by investing activities
|
214
|
|
|
110
|
|
|
84
|
|
|||
Financing Activities
|
|
|
|
|
|
|
|
|
|||
Net proceeds from issuance of common stock
|
1,338
|
|
|
863
|
|
|
2,891
|
|
|||
Repurchase of common stock
|
(27
|
)
|
|
—
|
|
|
—
|
|
|||
Cash dividends paid on common stock and cash in-lieu paid for fractional shares due to stock split
|
(17,170
|
)
|
|
(14,323
|
)
|
|
(12,393
|
)
|
|||
Net cash used in financing activities
|
(15,859
|
)
|
|
(13,460
|
)
|
|
(9,502
|
)
|
|||
Net increase (decrease) in cash
|
3,002
|
|
|
(540
|
)
|
|
3,324
|
|
|||
Cash at beginning of year
|
29,365
|
|
|
29,905
|
|
|
26,581
|
|
|||
Cash at end of year
|
$
|
32,367
|
|
|
$
|
29,365
|
|
|
$
|
29,905
|
|
|
|
December 31,
|
||||||||||||||||||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||||||||||||||||||
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
(1)
|
||||||||||||||||
Interest income
|
|
$
|
35,278
|
|
|
$
|
37,089
|
|
|
$
|
38,557
|
|
|
$
|
40,453
|
|
|
$
|
32,414
|
|
|
$
|
33,940
|
|
|
$
|
34,710
|
|
|
$
|
35,040
|
|
Interest expense
|
|
6,376
|
|
|
7,608
|
|
|
8,134
|
|
|
8,866
|
|
|
4,559
|
|
|
5,314
|
|
|
5,550
|
|
|
5,381
|
|
||||||||
Net interest income
|
|
28,902
|
|
|
29,481
|
|
|
30,423
|
|
|
31,587
|
|
|
27,855
|
|
|
28,626
|
|
|
29,160
|
|
|
29,659
|
|
||||||||
(Credit) provision for credit losses
|
|
(497
|
)
|
|
983
|
|
|
354
|
|
|
7
|
|
|
579
|
|
|
1,401
|
|
|
817
|
|
|
238
|
|
||||||||
Non-interest income
|
|
8,804
|
|
|
9,501
|
|
|
10,392
|
|
|
9,479
|
|
|
8,572
|
|
|
9,888
|
|
|
10,299
|
|
|
9,840
|
|
||||||||
Non-interest expense
|
|
22,304
|
|
|
22,895
|
|
|
23,166
|
|
|
23,580
|
|
|
21,428
|
|
|
22,158
|
|
|
21,825
|
|
|
23,099
|
|
||||||||
Income before income taxes
|
|
15,899
|
|
|
15,104
|
|
|
17,295
|
|
|
17,479
|
|
|
14,420
|
|
|
14,955
|
|
|
16,817
|
|
|
16,162
|
|
||||||||
Income tax expense
|
|
3,079
|
|
|
2,887
|
|
|
3,238
|
|
|
3,502
|
|
|
4,344
|
|
|
4,721
|
|
|
5,478
|
|
|
19,335
|
|
||||||||
Net income (loss)
|
|
$
|
12,820
|
|
|
$
|
12,217
|
|
|
$
|
14,057
|
|
|
$
|
13,977
|
|
|
$
|
10,076
|
|
|
$
|
10,234
|
|
|
$
|
11,339
|
|
|
$
|
(3,173
|
)
|
Per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic
|
|
$
|
0.82
|
|
|
$
|
0.78
|
|
|
$
|
0.90
|
|
|
$
|
0.90
|
|
|
$
|
0.65
|
|
|
$
|
0.66
|
|
|
$
|
0.72
|
|
|
$
|
(0.20
|
)
|
Diluted
|
|
$
|
0.82
|
|
|
$
|
0.78
|
|
|
$
|
0.90
|
|
|
$
|
0.89
|
|
|
$
|
0.64
|
|
|
$
|
0.66
|
|
|
$
|
0.72
|
|
|
$
|
(0.20
|
)
|
(1)
|
In the fourth quarter of 2017, the Company recognized
$14.3 million
of additional income tax expense upon the revaluation of its deferred tax assets and liabilities upon enactment of the Tax Act on December 22, 2017, which lowered the federal corporate tax rate from 35.0% to 21.0%, effective January 1, 2018. The impact to fourth quarter 2017 basic and diluted EPS was
$0.91
per share.
|
|
Number of Securities to Be Issued Upon Exercise of Outstanding Options, Warrants and Rights
(a)
|
|
Weighted Average Exercise Price of Outstanding Options, Warrants and Rights
(b)
|
|
Number of Securities Remaining Available for Future Issuance (Excluding Securities in Column (a))
(c)
(1)
|
|||||
Equity compensation plans approved by shareholders
|
145,136
|
|
|
$
|
5.53
|
|
|
936,891
|
|
|
Equity compensation plans not approved by shareholders
|
—
|
|
|
—
|
|
|
—
|
|
|
|
Total
|
145,136
|
|
|
$
|
5.53
|
|
|
936,891
|
|
|
(1)
|
Represents the 1.2 million shares available under the 2012 Equity and Incentive Plan less awards granted plus shares added back due to the forfeiture, cancellation or reacquisition by the Company for the settlement of an award to cover the exercise price or tax withholding under the current and previous plans.
|
|
|
|
Page
|
Exhibit
No.
|
|
Definition
|
|
||
|
||
21.1
*
|
|
|
23.1
*
|
|
|
31.1
*
|
|
|
31.2
*
|
|
|
32.1
**
|
|
|
32.2
**
|
|
|
101
|
|
The following materials from the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Stockholders’ Equity, (iv) the Consolidated Statements of Comprehensive Income (v) the Consolidated Statements of Cash Flows, and (vi) related notes to these financial statements.
|
*
|
Filed herewith
|
**
|
Furnished herewith
|
+
|
Management contract or a compensatory plan or arrangement.
|
Date: March 13, 2019
|
|
CAMDEN NATIONAL CORPORATION
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/s/ Gregory A. Dufour
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Gregory A. Dufour
President and Chief Executive Officer
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Name
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Position
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Date
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/s/ Gregory A. Dufour
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President, Director and Chief Executive Officer
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March 13, 2019
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Gregory A. Dufour
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/s/ Deborah A. Jordan
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Chief Operating Officer, Chief Financial Officer, and Principal Financial and Accounting Officer
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March 13, 2019
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Deborah A. Jordan
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/s/ Lawrence J. Sterrs
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Chair and Director
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March 13, 2019
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Lawrence J. Sterrs
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/s/ Ann W. Bresnahan
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Director
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March 13, 2019
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Ann W. Bresnahan
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/s/ Craig N. Denekas
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Director
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March 13, 2019
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Craig N. Denekas
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/s/ David C. Flanagan
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Director
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March 13, 2019
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David C. Flanagan
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/s/ S. Catherine Longley
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Director
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March 13, 2019
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S. Catherine Longley
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/s/ Marie J. McCarthy
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Director
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March 13, 2019
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Marie J. McCarthy
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/s/ James H. Page
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Director
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March 13, 2019
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James H. Page
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/s/ Carl J. Soderberg
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Director
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March 13, 2019
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Carl J. Soderberg
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/s/ Robin A. Sawyer
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Director
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March 13, 2019
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Robin A. Sawyer
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I.
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INTRODUCTION
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II.
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ADMINISTRATION
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III.
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ELIGIBILITY
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IV.
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PARTICIPATION
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V.
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VESTING OF RESTRICTED STOCK
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VI.
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DIVIDENDS
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CAMDEN NATIONAL CORPORATION
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By:
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Dated:
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Grantee’s Signature
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Grantee’s name and address:
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NAME:
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ADDRESS:
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/s/ RSM US LLP
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New York, New York
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March 13, 2019
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a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: March 13, 2019
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/s/ Gregory A. Dufour
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Gregory A. Dufour
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President and Chief Executive Officer
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a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: March 13, 2019
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/s/ Deborah A. Jordan
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Deborah A. Jordan
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Chief Operating Officer, Chief Financial Officer and Principal Financial & Accounting Officer
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Date: March 13, 2019
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/s/ Gregory A. Dufour
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Gregory A. Dufour
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President and Chief Executive Officer
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Date: March 13, 2019
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/s/ Deborah A. Jordan
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Deborah A. Jordan
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Chief Operating Officer, Chief Financial Officer and Principal Financial & Accounting Officer
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