ý
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Massachusetts
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04-3308902
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(State or other jurisdiction of incorporation of organization)
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(IRS Employer Identification No.)
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222 Merrimack Street, Lowell, Massachusetts
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01852
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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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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, $0.01 par value per share
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EBTC
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NASDAQ Stock Market
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Large accelerated filer o
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Accelerated filer x
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Non-accelerated filer o
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Smaller reporting company o
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Emerging growth company o
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Page Number
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Item 1.
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Business
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•
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Enterprise Insurance Services, LLC, organized in 2000 in the State of Delaware for the purpose of engaging in insurance sales activities;
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•
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Enterprise Wealth Services, LLC, organized in 2000 in the State of Delaware for the purpose of offering non-deposit investment products and services, under the name of "Enterprise Wealth Services;" and
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•
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Three Massachusetts security corporations, Enterprise Security Corporation (2005), Enterprise Security Corporation II (2007) and Enterprise Security Corporation III (2007), which hold various types of qualifying securities. The security corporations are limited to conducting securities investment activities that the Bank itself would be allowed to conduct under applicable laws.
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Basel III Minimum for Capital Adequacy Purposes
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Basel III Additional Capital Conservation Buffer
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Basel III Ratio with Capital Conservation Buffer
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Total Risk Based Capital (total capital to risk weighted assets)
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8.00%
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2.50%
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10.50%
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Tier 1 Risk Based Capital (tier 1 to risk weighted assets)
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6.00%
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2.50%
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8.50%
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Tier 1 Leverage Ratio (tier 1 to average assets)
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4.00%
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—%
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4.00%
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Common Equity Tier 1 Risk Based Capital (CET1 to risk weighted assets)
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4.50%
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2.50%
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7.00%
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•
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Requiring the Bank to take affirmative action to correct any conditions resulting from any violation or practice;
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•
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Directing the Bank to increase capital and maintain higher specific minimum capital ratios, which may preclude the Bank from being deemed to be well-capitalized and restrict its ability to engage in various activities;
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•
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Restricting the Bank's growth geographically, by products and services, or by mergers and acquisitions;
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•
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Requiring the Bank to enter into an informal or formal enforcement action to take corrective measures and cease unsafe and unsound practices, including requesting the board of directors to adopt a binding resolution, sign a memorandum of understanding or enter into a consent order;
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•
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Requiring prior approval for any changes in senior management or the board of directors;
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•
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Removing officers and directors and assessing civil monetary penalties; and
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•
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Taking possession of, closing and liquidating the Bank or appointing the FDIC as receiver under certain circumstances.
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•
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loans or extensions of credit to affiliates;
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•
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investment in affiliates;
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•
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assets that may be purchased from affiliates, except for real and personal property exempted by the Federal Reserve Board;
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•
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the amount of loans or extensions of credit to third parties collateralized by the securities or obligations of affiliates; and
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•
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the guarantee, acceptance or letter of credit issued on behalf of an affiliate.
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•
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Repeal of the federal prohibitions on the payment of interest on demand deposits effective July 21, 2011, thereby permitting, but not requiring, depository institutions to pay interest on business transaction and other accounts.
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•
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Imposition of comprehensive regulation of the over-the-counter derivatives market, including provisions that effectively prohibit insured depository institutions from conducting certain derivatives activities from within the institution.
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•
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Implementation of corporate governance revisions, including proxy access requirements for all publicly traded companies.
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•
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Increase in the Federal Reserve Board's examination authority with respect to bank holding companies' non-banking subsidiaries.
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•
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Limitations on the amount of any interchange fee charged by a debit card issuer to be reasonable and proportional to the cost incurred by the issuer. The interchange rate cap has been set at $0.24 per transaction. While these restrictions do not apply to banks like Enterprise with less than $10 billion in assets, the rule could affect the competitiveness of debit cards issued by smaller banks. We believe that market forces may erode the effectiveness of this exemption now that merchants can select more than one network for transaction routing.
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•
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Significant increases in the regulation of mortgage lending and servicing by banks and non-banks. In particular, requirements that mortgage originators act in the best interests of a consumer and seek to ensure that a consumer will have the capacity to repay a loan that the consumer enters into; requirements that mortgage originators be properly qualified, registered, and licensed and comply with any regulations designed by the Consumer Financial Protection Bureau ("CFPB") to monitor their operations; mandates of comprehensive additional and enhanced residential mortgage loan related disclosures, both prior to loan origination and after; mandates of additional appraisal practices for loans secured by residential dwellings, including potential additional appraisals at the banks cost; mandates of additional collection and reporting requirements on transactions that are reportable under the Home Mortgage Disclosure Act; additional restrictions on the compensation of loan originators; and requirements that mortgage loan securitizers retain a certain amount of risk (as established by the regulatory agencies). However, mortgages that conform to the new regulatory standards as "qualified residential mortgages" will not be subject to risk retention requirements.
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•
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The Company's technology administration includes policies and guidelines for the design, procurement, installation, management and acceptable use of hardware, software and network devices. The Company's project management standards are designed to provide risk-based oversight, coordinate and communicate ideas, and to prioritize and manage project implementation in a manner consistent with corporate objectives.
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•
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The Company has implemented layered security approaches for all electronic delivery channels to detect, prevent and respond to rising cybersecurity risks. Management utilizes a combination of third-party information security assessments, key technologies and ongoing internal and external evaluations to provide a level of protection of non-public personal information, to continually monitor and attempt to safeguard information on its operating systems and those of third-party service providers, and to quickly detect attacks. The Company also utilizes firewall technology and a combination of software and third-party monitoring to detect intrusion, and cybersecurity threats, guard against unauthorized access, and continuously identify and prevent computer viruses on the Company's information systems. To minimize debit card losses, the Company works with a third-party provider to establish parameters for allowable transaction activity, monitor transactions, and alert customers of potentially fraudulent activity.
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•
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The Company has a third-party risk management program designed to enable management to determine what risk, if any, a particular vendor and indirect vendors or subcontractors, exposes the Company to, and to rate and mitigate that risk by properly performing initial and ongoing due diligence when selecting or maintaining relationships with critical third-party providers and their subcontractors, for both on-premise and off-premise technology solutions.
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•
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The Company's Disaster Recovery and Business Continuity Program consists of the information and procedures required to enable a rapid recovery from an occurrence that would disable the Company's operations for an extended period, due to circumstances such as: loss of personnel; loss of data and/or loss of facilities under various scenarios, including unintentional, malicious or criminal intentions; or loss of access to, or the physical destruction or damage of facilities, infrastructure or systems; or denial of access to our systems or information by outside parties. The plan, which is reviewed annually, establishes responsibility for assessing a disruption of business, contains alternative strategies for the continuance of critical business functions during an emergency, assigns responsibility for restoring services, and sets priorities by which critical services will be restored. A bank-owned and maintained secondary data center location provides the Company back-up network processing capabilities if needed.
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•
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The Company has developed an Incident Response Plan in order to guide its actions in responding to real and suspected information security incidents. This includes unlawful, unauthorized, or unacceptable actions that involve a computer system or a computer network such as Distributed Denial of Service attacks, Corporate Account Takeover schemes, or ransomware. Additionally, an event that disrupts one of the Bank's service
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•
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The Bank Technology Committee of the Board oversees the technology and cybersecurity strategies and their alignment with business strategies. The Committee also oversees the effectiveness of the information security program and monitors the results of third-party testing and risk assessments and responses to breaches of customer data, among other project management, cybersecurity and business continuity oversight functions.
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Item 1A.
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Risk Factors
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Item 1B.
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Unresolved Staff Comments
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Item 2.
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Properties
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Item 3.
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Legal Proceedings
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Item 4.
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Mine Safety Disclosures
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Plan Category
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Number of Securities
to be issued upon
exercise of
outstanding options,
warrants and rights
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Weighted-average
exercise price of
outstanding options,
warrants and rights
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Number of Securities
remaining available for
future issuance under
equity compensation plans
(excluding securities
reflected in second
column from left)
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Equity compensation plans approved by security holders
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159,372
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$
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23.45
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271,838
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Equity compensation plans not approved by security holders
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—
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—
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—
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TOTAL
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159,372
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$
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23.45
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271,838
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Period Ending
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||||||||||||||||||||||
Index
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12/31/14
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12/31/15
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12/31/16
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12/31/17
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12/31/18
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12/31/19
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||||||||||||
Enterprise Bancorp, Inc.
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$
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100.00
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$
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92.56
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$
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155.49
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$
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143.30
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$
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137.67
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$
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148.10
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S&P 500 Index
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100.00
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101.38
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113.51
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138.29
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132.23
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173.86
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||||||
SNL Bank $1B - $5B Index
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100.00
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111.94
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161.04
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171.69
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150.42
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182.85
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Item 6.
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Selected Financial Data
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Year Ended December 31,
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||||||||||||||||||
(Dollars in thousands, except per share data)
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2019
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2018
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2017
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2016
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2015
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EARNINGS DATA
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Net interest income
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$
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115,857
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$
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108,835
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$
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97,522
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$
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86,792
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$
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78,294
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Provision for loan losses
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1,180
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2,250
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1,430
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2,993
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3,267
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|||||
Net interest income after provision for loan loss
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114,677
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106,585
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96,092
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83,799
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75,027
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Non-interest income
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16,173
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14,940
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14,958
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13,639
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13,139
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|||||
Net gains (losses) on sales of available for sale securities
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146
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(2,950
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)
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716
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802
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1,828
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Non-interest expense
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86,415
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80,878
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76,145
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70,328
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65,732
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|||||
Income before income taxes
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44,581
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37,697
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35,621
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27,912
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24,262
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|||||
Provision for income taxes
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10,381
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8,816
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16,228
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9,161
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8,114
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|||||
Net income
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$
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34,200
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$
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28,881
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$
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19,393
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$
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18,751
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$
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16,148
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COMMON SHARE DATA
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Basic earnings per share
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$
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2.90
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$
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2.47
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$
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1.68
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$
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1.71
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$
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1.56
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Diluted earnings per share
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2.89
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2.46
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1.66
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1.70
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1.55
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|||||
Book value per share at year end
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25.09
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21.80
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19.97
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18.72
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17.38
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Dividends paid per share
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$
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0.64
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$
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0.58
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$
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0.54
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$
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0.52
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$
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0.50
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Basic weighted average shares outstanding
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11,789,570
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11,679,520
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11,568,430
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10,966,333
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10,323,016
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Diluted weighted average shares outstanding
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11,829,818
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11,750,462
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11,651,763
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11,039,511
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10,389,934
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YEAR END BALANCE SHEET AND OTHER DATA
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Total assets
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$
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3,235,049
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$
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2,964,358
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$
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2,817,564
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$
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2,526,269
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$
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2,285,531
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Loans serviced for others
|
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95,905
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89,232
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89,059
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80,996
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71,272
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Investment assets under management
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916,623
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800,751
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844,977
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725,338
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678,377
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Total assets under management(1)
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$
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4,247,577
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$
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3,854,341
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$
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3,751,600
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$
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3,332,603
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$
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3,035,180
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||||||||||
Total loans
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$
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2,565,459
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$
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2,387,506
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$
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2,269,904
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$
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2,022,729
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$
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1,859,962
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Allowance for loan losses
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33,614
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|
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33,849
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|
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32,915
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|
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31,342
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|
|
29,008
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|
|||||
Investment securities
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505,255
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|
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432,921
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405,206
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|
|
374,790
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|
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300,358
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|
|||||
Interest-earning deposits
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23,867
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|
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19,255
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|
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14,496
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|
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17,428
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|
|
19,177
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|
|||||
Customer deposits
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|
2,786,730
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|
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2,507,999
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|
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2,293,872
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2,209,559
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1,911,378
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|||||
Total deposits (including brokered deposits)
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2,786,730
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2,564,782
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2,441,362
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|
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2,268,921
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|
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2,018,148
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|||||
Borrowed funds
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96,173
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|
|
100,492
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|
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89,000
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|
|
10,671
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|
|
53,671
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|
|||||
Subordinated debt
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14,872
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|
|
14,860
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|
|
14,847
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|
|
14,834
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|
|
14,822
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|
|||||
Total stockholders' equity
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296,641
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|
|
255,297
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|
|
231,810
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|
|
214,786
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|
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180,327
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|||||
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||||||||||
RATIOS
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|
|||||
Return on average total assets
|
|
1.10
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%
|
|
1.00
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%
|
|
0.73
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%
|
|
0.78
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%
|
|
0.76
|
%
|
|||||
Return on average stockholders' equity
|
|
12.31
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%
|
|
12.15
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%
|
|
8.58
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%
|
|
9.33
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%
|
|
9.29
|
%
|
|||||
Allowance for loan losses to total loans
|
|
1.31
|
%
|
|
1.42
|
%
|
|
1.45
|
%
|
|
1.55
|
%
|
|
1.56
|
%
|
|||||
Stockholders' equity to total assets
|
|
9.17
|
%
|
|
8.61
|
%
|
|
8.23
|
%
|
|
8.50
|
%
|
|
7.89
|
%
|
|||||
Dividend payout ratio
|
|
22.07
|
%
|
|
23.48
|
%
|
|
32.14
|
%
|
|
30.41
|
%
|
|
32.05
|
%
|
Item 7.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
•
|
the banking environment and the economy;
|
•
|
competition and market expansion opportunities;
|
•
|
the interest-rate environment, credit risk and the level of future non-performing assets and charge-offs;
|
•
|
potential asset and deposit growth, future non-interest expenditures and non-interest income growth;
|
•
|
expansion strategy; and
|
•
|
borrowing capacity.
|
(i)
|
failure of risk management controls and procedures;
|
(ii)
|
risk specific to commercial loans and borrowers and the adequacy of the allowance for loan losses;
|
(iii)
|
changes in the business cycle and downturns in the local, regional or national economies, including deterioration in the local real estate market, could negatively impact credit and/or asset quality and result in credit losses and increases in the Company's allowance for loan losses;
|
(iv)
|
deterioration of securities markets could adversely affect the value or credit quality of the Company's assets and the availability of funding sources necessary to meet the Company's liquidity needs;
|
(v)
|
changes in interest rates could negatively impact net interest income;
|
(vi)
|
liquidity risks;
|
(vii)
|
technology-related risk, including technological changes and technology service interruptions or failure could adversely impact the Company's operations and increase technology-related expenditures;
|
(viii)
|
cybersecurity risk including security breaches and identity theft could impact the Company's reputation, increase regulatory oversight and impact the financial results of the Company;
|
(ix)
|
increasing competition from larger regional and out-of-state banking organizations as well as non-bank providers of various financial services could adversely affect the Company's competitive position within its market area and reduce demand for the Company's products and services;
|
(x)
|
our ability to retain and increase our aggregate assets under management;
|
(xi)
|
our ability to enter new markets successfully and capitalize on growth opportunities, including the receipt of required regulatory approvals;
|
(xii)
|
damage to our reputation in the markets we serve;
|
(xiii)
|
exposure to legal claims and litigation;
|
(xiv)
|
the inability to raise capital, on terms favorable to us, could cause us to fall below regulatory minimum capital adequacy levels and consequently restrict our business and operations;
|
(xv)
|
changes in laws and regulations that apply to the Company's business and operations, and any additional regulations, or repeals that may be forthcoming as a result thereof, could cause the Company to incur additional costs and adversely affect the Company's business environment, operations and financial results;
|
(xvi)
|
future regulatory compliance costs, including any increase caused by new regulations imposed by the government's current administration; and
|
(xvii)
|
changes in accounting and/or auditing standards, policies and practices, as may be adopted or established by the regulatory agencies, FASB, or the Public Company Accounting Oversight Board could negatively impact the Company's financial results.
|
•
|
The ratio of impaired and classified loans to total loans amounted to 2.25% at December 31, 2019, compared to 2.41% at December 31, 2018.
|
•
|
The provision for loan loss related to impaired and classified loans was lower in 2019 than in 2018, contributing to a decrease in the overall provision.
|
•
|
Loan growth for the year ended December 31, 2019 was $178.0 million, compared to $117.6 million during the year ended December 31, 2018.
|
•
|
The allowance allocated to non-classified loans was relatively flat for the year ended December 31, 2019 compared to 2018, as provisions necessary for loan growth were largely offset by continued positive credit and economic metrics.
|
|
|
December 31,
|
|||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||||
Federal agency obligations(1)
|
|
$
|
1,004
|
|
|
0.2
|
%
|
|
$
|
7,975
|
|
|
1.9
|
%
|
|
$
|
51,717
|
|
|
12.8
|
%
|
Residential federal agency MBS(1)
|
|
192,658
|
|
|
38.2
|
%
|
|
172,726
|
|
|
40.0
|
%
|
|
140,154
|
|
|
34.6
|
%
|
|||
Commercial federal agency MBS(1)
|
|
114,635
|
|
|
22.7
|
%
|
|
93,979
|
|
|
21.8
|
%
|
|
66,500
|
|
|
16.4
|
%
|
|||
Municipal securities taxable
|
|
81,687
|
|
|
16.2
|
%
|
|
34,741
|
|
|
8.1
|
%
|
|
11,420
|
|
|
2.8
|
%
|
|||
Municipal securities tax exempt
|
|
100,038
|
|
|
19.8
|
%
|
|
107,302
|
|
|
24.8
|
%
|
|
122,926
|
|
|
30.4
|
%
|
|||
Corporate bonds
|
|
14,311
|
|
|
2.8
|
%
|
|
13,806
|
|
|
3.2
|
%
|
|
11,542
|
|
|
2.8
|
%
|
|||
CDs(2)
|
|
455
|
|
|
0.1
|
%
|
|
944
|
|
|
0.2
|
%
|
|
947
|
|
|
0.2
|
%
|
|||
Total debt securities
|
|
$
|
504,788
|
|
|
100.0
|
%
|
|
$
|
431,473
|
|
|
100.0
|
%
|
|
$
|
405,206
|
|
|
100.0
|
%
|
(1)
|
These categories may include investments issued or guaranteed by government sponsored enterprises such as Fannie Mae ("FNMA"), Freddie Mac ("FHLMC"), Federal Farm Credit Bank ("FFCB"), or one of several Federal Home Loan Banks, as well as investments guaranteed by Ginnie Mae ("GNMA"), a wholly-owned government entity.
|
(2)
|
CDs represent term deposits issued by banks that are subject to FDIC insurance and purchased on the open market.
|
|
|
Under 1 Year
|
|
>1 – 5 Years
|
|
>5 – 10 Years
|
|
Over 10 Years
|
||||||||||||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
||||||||||||
At amortized cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal agency obligations
|
|
$
|
999
|
|
|
2.56
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Residential federal agency MBS
|
|
2
|
|
|
2.71
|
%
|
|
—
|
|
|
—
|
%
|
|
6,406
|
|
|
2.87
|
%
|
|
183,984
|
|
|
2.81
|
%
|
||||
Commercial federal agency MBS
|
|
990
|
|
|
3.17
|
%
|
|
51,578
|
|
|
2.88
|
%
|
|
58,614
|
|
|
3.03
|
%
|
|
—
|
|
|
—
|
%
|
||||
Municipal securities taxable
|
|
—
|
|
|
—
|
%
|
|
3,865
|
|
|
3.17
|
%
|
|
71,129
|
|
|
3.16
|
%
|
|
4,101
|
|
|
2.84
|
%
|
||||
Municipal securities tax exempt
|
|
1,419
|
|
|
3.61
|
%
|
|
9,524
|
|
|
3.49
|
%
|
|
45,548
|
|
|
3.02
|
%
|
|
38,851
|
|
|
2.68
|
%
|
||||
Corporate bonds
|
|
2,766
|
|
|
2.70
|
%
|
|
6,728
|
|
|
2.79
|
%
|
|
4,332
|
|
|
3.61
|
%
|
|
—
|
|
|
—
|
%
|
||||
CDs
|
|
454
|
|
|
2.30
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
||||
Total debt securities
|
|
$
|
6,630
|
|
|
2.92
|
%
|
|
$
|
71,695
|
|
|
2.97
|
%
|
|
$
|
186,029
|
|
|
3.08
|
%
|
|
$
|
226,936
|
|
|
2.78
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
At fair value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total debt securities
|
|
$
|
6,660
|
|
|
|
|
$
|
73,737
|
|
|
|
|
$
|
193,368
|
|
|
|
|
$
|
231,023
|
|
|
|
|
|
December 31,
|
|||||||||||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||||||||||
Commercial real estate
|
|
$
|
1,394,179
|
|
|
54.3
|
%
|
|
$
|
1,303,879
|
|
|
54.6
|
%
|
|
$
|
1,201,351
|
|
|
52.9
|
%
|
|
$
|
1,038,082
|
|
|
51.3
|
%
|
|
$
|
936,921
|
|
|
50.3
|
%
|
Commercial & industrial
|
|
501,227
|
|
|
19.5
|
%
|
|
514,253
|
|
|
21.5
|
%
|
|
498,802
|
|
|
21.9
|
%
|
|
490,799
|
|
|
24.2
|
%
|
|
458,553
|
|
|
24.7
|
%
|
|||||
Commercial construction
|
|
317,477
|
|
|
12.4
|
%
|
|
234,430
|
|
|
9.8
|
%
|
|
274,905
|
|
|
12.1
|
%
|
|
213,447
|
|
|
10.5
|
%
|
|
202,993
|
|
|
10.9
|
%
|
|||||
Total commercial loans
|
|
2,212,883
|
|
|
86.2
|
%
|
|
2,052,562
|
|
|
85.9
|
%
|
|
1,975,058
|
|
|
86.9
|
%
|
|
1,742,328
|
|
|
86.0
|
%
|
|
1,598,467
|
|
|
85.9
|
%
|
|||||
Residential mortgages
|
|
247,373
|
|
|
9.6
|
%
|
|
231,501
|
|
|
9.7
|
%
|
|
195,492
|
|
|
8.6
|
%
|
|
180,560
|
|
|
8.9
|
%
|
|
169,188
|
|
|
9.1
|
%
|
|||||
Home equity loans and lines
|
|
98,252
|
|
|
3.8
|
%
|
|
96,116
|
|
|
4.0
|
%
|
|
91,706
|
|
|
4.0
|
%
|
|
91,065
|
|
|
4.5
|
%
|
|
83,373
|
|
|
4.4
|
%
|
|||||
Consumer
|
|
10,054
|
|
|
0.4
|
%
|
|
10,241
|
|
|
0.4
|
%
|
|
10,293
|
|
|
0.5
|
%
|
|
10,845
|
|
|
0.6
|
%
|
|
10,747
|
|
|
0.6
|
%
|
|||||
Total retail loans
|
|
355,679
|
|
|
13.8
|
%
|
|
337,858
|
|
|
14.1
|
%
|
|
297,491
|
|
|
13.1
|
%
|
|
282,470
|
|
|
14.0
|
%
|
|
263,308
|
|
|
14.1
|
%
|
|||||
Gross loans
|
|
2,568,562
|
|
|
100.0
|
%
|
|
2,390,420
|
|
|
100.0
|
%
|
|
2,272,549
|
|
|
100.0
|
%
|
|
2,024,798
|
|
|
100.0
|
%
|
|
1,861,775
|
|
|
100.0
|
%
|
|||||
Deferred fees, net
|
|
(3,103
|
)
|
|
|
|
|
(2,914
|
)
|
|
|
|
|
(2,645
|
)
|
|
|
|
|
(2,069
|
)
|
|
|
|
|
(1,813
|
)
|
|
|
|
|||||
Total loans
|
|
2,565,459
|
|
|
|
|
|
2,387,506
|
|
|
|
|
|
2,269,904
|
|
|
|
|
|
2,022,729
|
|
|
|
|
|
1,859,962
|
|
|
|
|
|||||
Allowance for loan losses
|
|
(33,614
|
)
|
|
|
|
|
(33,849
|
)
|
|
|
|
|
(32,915
|
)
|
|
|
|
|
(31,342
|
)
|
|
|
|
|
(29,008
|
)
|
|
|
|
|||||
Net loans
|
|
$
|
2,531,845
|
|
|
|
|
|
$
|
2,353,657
|
|
|
|
|
|
$
|
2,236,989
|
|
|
|
|
|
$
|
1,991,387
|
|
|
|
|
|
$
|
1,830,954
|
|
|
|
|
(Dollars in thousands)
|
|
Commercial
real estate
|
|
Commercial &
industrial
|
|
Commercial
construction
|
||||||
Amounts due(1):
|
|
|
|
|
|
|
|
|
|
|||
One year or less, and demand notes
|
|
$
|
68,342
|
|
|
$
|
246,087
|
|
|
$
|
150,921
|
|
After one year through five years
|
|
249,559
|
|
|
132,558
|
|
|
54,164
|
|
|||
Beyond five years
|
|
1,076,278
|
|
|
122,582
|
|
|
112,392
|
|
|||
|
|
$
|
1,394,179
|
|
|
$
|
501,227
|
|
|
$
|
317,477
|
|
|
|
|
|
|
|
|
||||||
Interest rate terms on amounts due after one year:
|
|
|
|
|
|
|
|
|
|
|||
Fixed
|
|
$
|
45,229
|
|
|
$
|
119,541
|
|
|
$
|
2,933
|
|
Adjustable(2)
|
|
$
|
1,280,608
|
|
|
$
|
135,599
|
|
|
$
|
163,623
|
|
(1)
|
Scheduled contractual maturities may not reflect the actual maturities of loans. The average maturity of loans may be shorter than their contractual terms principally due to prepayments and demand features.
|
(2)
|
Adjustable rate loans may have fixed initial periods before periodic rate adjustments begin.
|
|
|
December 31,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Non-accrual loan summary:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
|
$
|
8,280
|
|
|
$
|
6,894
|
|
|
$
|
6,751
|
|
|
$
|
4,876
|
|
|
$
|
8,506
|
|
Commercial and industrial
|
|
3,285
|
|
|
3,417
|
|
|
1,294
|
|
|
3,174
|
|
|
4,323
|
|
|||||
Commercial construction
|
|
1,735
|
|
|
176
|
|
|
193
|
|
|
519
|
|
|
335
|
|
|||||
Residential mortgages
|
|
411
|
|
|
763
|
|
|
262
|
|
|
289
|
|
|
366
|
|
|||||
Home equity
|
|
1,040
|
|
|
514
|
|
|
463
|
|
|
616
|
|
|
288
|
|
|||||
Consumer
|
|
20
|
|
|
17
|
|
|
34
|
|
|
—
|
|
|
19
|
|
|||||
Total non-accrual loans
|
|
14,771
|
|
|
11,781
|
|
|
8,997
|
|
|
9,474
|
|
|
13,837
|
|
|||||
Overdrafts > 90 days past due
|
|
—
|
|
|
3
|
|
|
35
|
|
|
11
|
|
|
8
|
|
|||||
Total non-performing loans
|
|
14,771
|
|
|
11,784
|
|
|
9,032
|
|
|
9,485
|
|
|
13,845
|
|
|||||
OREO
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total non-performing assets
|
|
$
|
14,771
|
|
|
$
|
11,784
|
|
|
$
|
9,032
|
|
|
$
|
9,485
|
|
|
$
|
13,845
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Loans
|
|
$
|
2,565,459
|
|
|
$
|
2,387,506
|
|
|
$
|
2,269,904
|
|
|
$
|
2,022,729
|
|
|
$
|
1,859,962
|
|
Accruing TDR loans not included above
|
|
$
|
17,103
|
|
|
$
|
19,389
|
|
|
$
|
17,356
|
|
|
$
|
22,418
|
|
|
$
|
10,053
|
|
Delinquent loans 60-89 days past due and still accruing
|
|
$
|
7,776
|
|
|
$
|
205
|
|
|
$
|
1,026
|
|
|
$
|
940
|
|
|
$
|
2,021
|
|
Loans 60-89 days past due and still accruing to total loans
|
|
0.30
|
%
|
|
0.01
|
%
|
|
0.05
|
%
|
|
0.05
|
%
|
|
0.11
|
%
|
|||||
Adversely classified loans to total loans
|
|
1.45
|
%
|
|
1.49
|
%
|
|
1.16
|
%
|
|
1.70
|
%
|
|
1.33
|
%
|
|||||
Non-performing loans to total loans
|
|
0.58
|
%
|
|
0.49
|
%
|
|
0.40
|
%
|
|
0.47
|
%
|
|
0.74
|
%
|
|||||
Non-performing assets to total assets
|
|
0.46
|
%
|
|
0.40
|
%
|
|
0.32
|
%
|
|
0.38
|
%
|
|
0.61
|
%
|
|||||
Allowance for loan losses
|
|
$
|
33,614
|
|
|
$
|
33,849
|
|
|
$
|
32,915
|
|
|
$
|
31,342
|
|
|
$
|
29,008
|
|
Allowance for loan losses to non-performing loans
|
|
227.57
|
%
|
|
287.25
|
%
|
|
364.43
|
%
|
|
330.44
|
%
|
|
209.52
|
%
|
|||||
Allowance for loan losses to total loans
|
|
1.31
|
%
|
|
1.42
|
%
|
|
1.45
|
%
|
|
1.55
|
%
|
|
1.56
|
%
|
|
|
December 31,
|
|||||||||||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
|
Allowance
allocation
|
|
Loan
category
as % of
gross
loans
|
|
Allowance
allocation
|
|
Loan
category
as % of
gross
loans
|
|
Allowance
allocation
|
|
Loan
category
as % of
gross
loans
|
|
Allowance
allocation
|
|
Loan
category
as % of
gross
loans
|
|
Allowance
allocation
|
|
Loan
category
as % of
gross
loans
|
|||||||||||||||
Comml real estate
|
|
$
|
18,338
|
|
|
54.3
|
%
|
|
$
|
18,014
|
|
|
54.6
|
%
|
|
$
|
17,545
|
|
|
52.9
|
%
|
|
$
|
14,902
|
|
|
51.3
|
%
|
|
$
|
13,514
|
|
|
50.3
|
%
|
Comml and industrial
|
|
9,129
|
|
|
19.5
|
%
|
|
10,493
|
|
|
21.5
|
%
|
|
9,669
|
|
|
21.9
|
%
|
|
11,204
|
|
|
24.2
|
%
|
|
9,758
|
|
|
24.7
|
%
|
|||||
Comml constr
|
|
4,149
|
|
|
12.4
|
%
|
|
3,307
|
|
|
9.8
|
%
|
|
3,947
|
|
|
12.1
|
%
|
|
3,406
|
|
|
10.5
|
%
|
|
3,905
|
|
|
10.9
|
%
|
|||||
Resid: mortg and home equity
|
|
1,731
|
|
|
13.4
|
%
|
|
1,789
|
|
|
13.7
|
%
|
|
1,512
|
|
|
12.6
|
%
|
|
1,594
|
|
|
13.4
|
%
|
|
1,601
|
|
|
13.5
|
%
|
|||||
Consumer
|
|
267
|
|
|
0.4
|
%
|
|
246
|
|
|
0.4
|
%
|
|
242
|
|
|
0.5
|
%
|
|
236
|
|
|
0.6
|
%
|
|
230
|
|
|
0.6
|
%
|
|||||
Total
|
|
$
|
33,614
|
|
|
100.0
|
%
|
|
$
|
33,849
|
|
|
100.0
|
%
|
|
$
|
32,915
|
|
|
100.0
|
%
|
|
$
|
31,342
|
|
|
100.0
|
%
|
|
$
|
29,008
|
|
|
100.0
|
%
|
|
|
Years Ended December 31,
|
||||||||||||||||||
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Balance at beginning of year
|
|
$
|
33,849
|
|
|
$
|
32,915
|
|
|
$
|
31,342
|
|
|
$
|
29,008
|
|
|
$
|
27,121
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision charged to operations
|
|
1,180
|
|
|
2,250
|
|
|
1,430
|
|
|
2,993
|
|
|
3,267
|
|
|||||
Recoveries on charged-off loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
|
—
|
|
|
51
|
|
|
193
|
|
|
20
|
|
|
74
|
|
|||||
Commercial and industrial
|
|
734
|
|
|
278
|
|
|
550
|
|
|
681
|
|
|
279
|
|
|||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|||||
Residential mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity
|
|
9
|
|
|
55
|
|
|
4
|
|
|
3
|
|
|
15
|
|
|||||
Consumer
|
|
35
|
|
|
47
|
|
|
8
|
|
|
5
|
|
|
16
|
|
|||||
Total recovered
|
|
$
|
778
|
|
|
$
|
431
|
|
|
$
|
755
|
|
|
$
|
709
|
|
|
$
|
409
|
|
Charged-off loans:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
|
—
|
|
|
—
|
|
|
178
|
|
|
328
|
|
|
133
|
|
|||||
Commercial and industrial
|
|
2,069
|
|
|
1,593
|
|
|
348
|
|
|
980
|
|
|
1,571
|
|
|||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|||||
Residential mortgages
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|||||
Consumer
|
|
124
|
|
|
154
|
|
|
86
|
|
|
49
|
|
|
85
|
|
|||||
Total charged-off
|
|
$
|
2,193
|
|
|
$
|
1,747
|
|
|
$
|
612
|
|
|
$
|
1,368
|
|
|
$
|
1,789
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net loans charged-off (recovered)
|
|
$
|
1,415
|
|
|
$
|
1,316
|
|
|
$
|
(143
|
)
|
|
$
|
659
|
|
|
$
|
1,380
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance at December 31
|
|
$
|
33,614
|
|
|
$
|
33,849
|
|
|
$
|
32,915
|
|
|
$
|
31,342
|
|
|
$
|
29,008
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Average loans outstanding
|
|
$
|
2,430,912
|
|
|
$
|
2,303,708
|
|
|
$
|
2,130,048
|
|
|
$
|
1,919,826
|
|
|
$
|
1,740,962
|
|
Net loans charged-off (recovered) to average loans
|
|
0.06
|
%
|
|
0.06
|
%
|
|
(0.01
|
)%
|
|
0.03
|
%
|
|
0.08
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Recoveries to charge-offs
|
|
35.48
|
%
|
|
24.67
|
%
|
|
123.37
|
%
|
|
51.83
|
%
|
|
22.86
|
%
|
|||||
Net loans charged-off (recovered) to allowance
|
|
4.21
|
%
|
|
3.89
|
%
|
|
(0.43
|
)%
|
|
2.10
|
%
|
|
4.76
|
%
|
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2017
|
|||||||||||||||
(Dollars in thousands)
|
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|
Amount
|
|
% of
Total
|
|||||||||
Non-interest checking
|
|
$
|
794,583
|
|
|
28.5
|
%
|
|
$
|
765,029
|
|
|
29.8
|
%
|
|
$
|
705,846
|
|
|
28.9
|
%
|
Interest-bearing checking
|
|
467,988
|
|
|
16.8
|
%
|
|
403,497
|
|
|
15.8
|
%
|
|
391,111
|
|
|
16.0
|
%
|
|||
Total checking
|
|
1,262,571
|
|
|
45.3
|
%
|
|
1,168,526
|
|
|
45.6
|
%
|
|
1,096,957
|
|
|
44.9
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Savings
|
|
203,236
|
|
|
7.3
|
%
|
|
193,214
|
|
|
7.5
|
%
|
|
193,385
|
|
|
7.9
|
%
|
|||
Money markets
|
|
1,009,972
|
|
|
36.2
|
%
|
|
862,028
|
|
|
33.6
|
%
|
|
807,931
|
|
|
33.1
|
%
|
|||
Total savings/money markets
|
|
1,213,208
|
|
|
43.5
|
%
|
|
1,055,242
|
|
|
41.1
|
%
|
|
1,001,316
|
|
|
41.0
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
CDs
|
|
310,951
|
|
|
11.2
|
%
|
|
284,231
|
|
|
11.1
|
%
|
|
195,599
|
|
|
8.0
|
%
|
|||
Total customer deposits
|
|
2,786,730
|
|
|
100.0
|
%
|
|
2,507,999
|
|
|
97.8
|
%
|
|
2,293,872
|
|
|
93.9
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Brokered deposits(1)
|
|
—
|
|
|
—
|
%
|
|
56,783
|
|
|
2.2
|
%
|
|
147,490
|
|
|
6.1
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total deposits
|
|
$
|
2,786,730
|
|
|
100.0
|
%
|
|
$
|
2,564,782
|
|
|
100.0
|
%
|
|
$
|
2,441,362
|
|
|
100.0
|
%
|
(1)
|
Brokered CDs $250,000 and under.
|
(Dollars in thousands)
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Due in three months or less
|
|
$
|
22,515
|
|
|
$
|
9,435
|
|
Due in greater than three months through six months
|
|
15,476
|
|
|
12,353
|
|
||
Due in greater than six months through twelve months
|
|
29,325
|
|
|
18,012
|
|
||
Due in greater than twelve months
|
|
22,884
|
|
|
29,231
|
|
||
Total CDs
|
|
$
|
90,200
|
|
|
$
|
69,031
|
|
|
|
Year ended December 31,
|
||||||||||||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||
(Dollars in thousands)
|
|
Average
Balance
|
|
Avg
Rate
|
|
% of
Total
|
|
Average
Balance
|
|
Avg
Rate
|
|
% of
Total
|
|
Average
Balance
|
|
Avg
Rate
|
|
% of
Total
|
||||||||||||
Non-interest checking
|
|
$
|
790,915
|
|
|
—
|
%
|
|
28.6
|
%
|
|
$
|
744,820
|
|
|
—
|
%
|
|
28.8
|
%
|
|
$
|
697,247
|
|
|
—
|
%
|
|
29.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interest checking
|
|
434,074
|
|
|
0.38
|
%
|
|
15.7
|
%
|
|
391,209
|
|
|
0.30
|
%
|
|
15.1
|
%
|
|
357,252
|
|
|
0.14
|
%
|
|
15.3
|
%
|
|||
Savings
|
|
204,977
|
|
|
0.18
|
%
|
|
7.4
|
%
|
|
197,420
|
|
|
0.13
|
%
|
|
7.6
|
%
|
|
195,465
|
|
|
0.15
|
%
|
|
8.3
|
%
|
|||
Money market
|
|
1,020,363
|
|
|
1.14
|
%
|
|
36.9
|
%
|
|
867,318
|
|
|
0.61
|
%
|
|
33.5
|
%
|
|
827,867
|
|
|
0.32
|
%
|
|
35.4
|
%
|
|||
Total interest-bearing non-term deposits
|
|
1,659,414
|
|
|
0.82
|
%
|
|
60.0
|
%
|
|
1,455,947
|
|
|
0.46
|
%
|
|
56.2
|
%
|
|
1,380,584
|
|
|
0.25
|
%
|
|
59.0
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
CDs
|
|
300,810
|
|
|
1.99
|
%
|
|
10.8
|
%
|
|
242,077
|
|
|
1.46
|
%
|
|
9.4
|
%
|
|
170,427
|
|
|
0.84
|
%
|
|
7.3
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total non-brokered deposits
|
|
2,751,139
|
|
|
0.71
|
%
|
|
99.4
|
%
|
|
2,442,844
|
|
|
0.42
|
%
|
|
94.4
|
%
|
|
2,248,258
|
|
|
0.22
|
%
|
|
96.1
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Brokered deposits
|
|
15,466
|
|
|
1.88
|
%
|
|
0.6
|
%
|
|
145,645
|
|
|
1.70
|
%
|
|
5.6
|
%
|
|
91,522
|
|
|
1.22
|
%
|
|
3.9
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total
|
|
$
|
2,766,605
|
|
|
0.72
|
%
|
|
100.0
|
%
|
|
$
|
2,588,489
|
|
|
0.49
|
%
|
|
100.0
|
%
|
|
$
|
2,339,780
|
|
|
0.26
|
%
|
|
100.0
|
%
|
|
|
Year ended December 31,
|
|||||||||||||||||||
|
|
2019
|
2018
|
|
2017
|
||||||||||||||||
(Dollars in thousands)
|
|
Average
Balance
|
|
Average
Cost
|
|
Average
Balance
|
|
Average
Cost |
|
Average
Balance
|
|
Average
Cost |
|||||||||
FHLB advances
|
|
$
|
15,885
|
|
|
2.42
|
%
|
|
$
|
22,250
|
|
|
1.72
|
%
|
|
$
|
49,546
|
|
|
1.19
|
%
|
Other borrowed funds
|
|
55
|
|
|
2.64
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|||
Total borrowed funds
|
|
$
|
15,940
|
|
|
2.42
|
%
|
|
$
|
22,250
|
|
|
1.72
|
%
|
|
$
|
49,546
|
|
|
1.19
|
%
|
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2017
|
|||||||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||||
Brokered deposits
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
56,783
|
|
|
36.1
|
%
|
|
$
|
147,490
|
|
|
62.4
|
%
|
Borrowed funds
|
|
96,173
|
|
|
100.0
|
%
|
|
100,492
|
|
|
63.9
|
%
|
|
89,000
|
|
|
37.6
|
%
|
|||
Wholesale funding
|
|
$
|
96,173
|
|
|
100.0
|
%
|
|
$
|
157,275
|
|
|
100.0
|
%
|
|
$
|
236,490
|
|
|
100.0
|
%
|
|
|
Payments Due by Period
|
||||||||||||||||||
(Dollars in thousands)
|
|
Total
|
|
With-in
1 Year
|
|
>1 – 3
Years
|
|
>3 – 5
Years
|
|
After 5
Years
|
||||||||||
Contractual Cash Obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
CDs
|
|
$
|
310,951
|
|
|
$
|
229,616
|
|
|
$
|
78,204
|
|
|
$
|
2,907
|
|
|
$
|
224
|
|
FHLB borrowings
|
|
96,173
|
|
|
95,697
|
|
|
—
|
|
|
—
|
|
|
476
|
|
|||||
Subordinated debt
|
|
15,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,000
|
|
|||||
Supplemental retirement plans
|
|
2,492
|
|
|
276
|
|
|
552
|
|
|
552
|
|
|
1,112
|
|
|||||
Operating lease obligations
|
|
29,579
|
|
|
1,242
|
|
|
2,487
|
|
|
2,507
|
|
|
23,343
|
|
|||||
Vendor contracts
|
|
15,807
|
|
|
7,364
|
|
|
5,709
|
|
|
2,541
|
|
|
193
|
|
|||||
Total contractual obligations
|
|
$
|
470,002
|
|
|
$
|
334,195
|
|
|
$
|
86,952
|
|
|
$
|
8,507
|
|
|
$
|
40,348
|
|
|
|
Commitment Expiration — By Period
|
||||||||||||||||||
(Dollars in thousands)
|
|
Total
|
|
With-in
1 Year
|
|
>1 – 3
Years
|
|
>3 – 5
Years
|
|
After 5
Years
|
||||||||||
Other Commitments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Unadvanced loans and lines
|
|
$
|
905,245
|
|
|
$
|
587,119
|
|
|
$
|
182,863
|
|
|
$
|
44,406
|
|
|
$
|
90,857
|
|
Commitments to originate loans
|
|
25,930
|
|
|
25,930
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Letters of credit
|
|
25,284
|
|
|
17,260
|
|
|
7,984
|
|
|
40
|
|
|
—
|
|
|||||
Commitments to originate loans for sale
|
|
1,095
|
|
|
1,095
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commitments to sell loans
|
|
1,696
|
|
|
1,696
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Customer related interest-rate swaps notional amount(1)
|
|
22,775
|
|
|
—
|
|
|
1,921
|
|
|
—
|
|
|
20,854
|
|
|||||
Total commitments
|
|
$
|
982,025
|
|
|
$
|
633,100
|
|
|
$
|
192,768
|
|
|
$
|
44,446
|
|
|
$
|
111,711
|
|
(1)
|
Offsetting positions to these interest-rate swaps offered to commercial loan customers are entered into with a counterparty. Notional principal amounts are not actually exchanged.
|
|
|
December 31,
|
||||||||||
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Total assets
|
|
$
|
3,235,049
|
|
|
$
|
2,964,358
|
|
|
$
|
2,817,564
|
|
Loans serviced for others
|
|
95,905
|
|
|
89,232
|
|
|
89,059
|
|
|||
Investment assets under management
|
|
916,623
|
|
|
800,751
|
|
|
844,977
|
|
|||
Total assets under management
|
|
$
|
4,247,577
|
|
|
$
|
3,854,341
|
|
|
$
|
3,751,600
|
|
|
|
December 31,
|
|
||||||||
|
|
2019 vs 2018
|
|
||||||||
|
|
|
Increase (Decrease) due to
|
|
|||||||
(Dollars in thousands)
|
|
Net
Change
|
Volume
|
Rate
|
|
||||||
Interest Income
|
|
|
|
|
|
|
|
|
|||
Loans and loans held for sale (tax equivalent)
|
|
$
|
10,929
|
|
$
|
6,212
|
|
$
|
4,717
|
|
|
Investment securities (tax equivalent)
|
|
2,225
|
|
870
|
|
1,355
|
|
|
|||
Other interest-earning assets(1)
|
|
806
|
|
715
|
|
91
|
|
|
|||
Total interest-earning assets (tax equivalent)
|
|
13,960
|
|
7,797
|
|
6,163
|
|
|
|||
|
|
|
|
|
|
||||||
Interest Expense
|
|
|
|
|
|
|
|
|
|||
Interest checking, savings, and money market
|
|
6,893
|
|
1,044
|
|
5,849
|
|
|
|||
CDs
|
|
2,469
|
|
989
|
|
1,480
|
|
|
|||
Brokered CDs
|
|
(2,181
|
)
|
(2,419
|
)
|
238
|
|
|
|||
Borrowed funds
|
|
2
|
|
(127
|
)
|
129
|
|
|
|||
Subordinated debt
|
|
—
|
|
1
|
|
(1
|
)
|
|
|||
Total interest-bearing funding
|
|
7,183
|
|
(512
|
)
|
7,695
|
|
|
|||
|
|
|
|
|
|
||||||
Change in net interest income (tax equivalent)
|
|
$
|
6,777
|
|
$
|
8,309
|
|
$
|
(1,532
|
)
|
|
(1)
|
Income on other interest-earning assets includes interest on deposits, and fed funds sold, and dividends on FHLB stock.
|
|
|
Average Balances, Interest and Average Yields
|
|||||||||||||||||||||||||||||||
|
|
Year ended December 31, 2019
|
|
Year ended December 31, 2018
|
|
Year ended December 31, 2017
|
|||||||||||||||||||||||||||
(Dollars in thousands)
|
|
Average
Balance
|
|
Interest(1)
|
|
Average
Yield(1)
|
|
Average
Balance
|
|
Interest(1)
|
|
Average
Yield (1)
|
|
Average
Balance
|
|
Interest(1)
|
|
Average
Yield(1)
|
|||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans and loans held for sale(2) (tax equivalent)
|
|
$
|
2,432,195
|
|
|
$
|
122,635
|
|
|
5.04
|
%
|
|
$
|
2,303,781
|
|
|
$
|
111,706
|
|
|
4.85
|
%
|
|
$
|
2,130,752
|
|
|
$
|
97,741
|
|
|
4.59
|
%
|
Investment securities(3) (tax equivalent)
|
|
462,017
|
|
|
14,160
|
|
|
3.06
|
%
|
|
431,835
|
|
|
11,935
|
|
|
2.76
|
%
|
|
379,324
|
|
|
10,242
|
|
|
2.70
|
%
|
||||||
Other interest-earning assets(4)
|
|
80,740
|
|
|
1,891
|
|
|
2.34
|
%
|
|
49,970
|
|
|
1,085
|
|
|
2.17
|
%
|
|
30,225
|
|
|
428
|
|
|
1.42
|
%
|
||||||
Total interest-earning assets (tax equivalent)
|
|
2,974,952
|
|
|
138,686
|
|
|
4.66
|
%
|
|
2,785,586
|
|
|
124,726
|
|
|
4.48
|
%
|
|
2,540,301
|
|
|
108,411
|
|
|
4.27
|
%
|
||||||
Other assets
|
|
138,205
|
|
|
|
|
|
|
|
|
98,148
|
|
|
|
|
|
|
|
|
107,729
|
|
|
|
|
|
|
|
||||||
Total assets
|
|
$
|
3,113,157
|
|
|
|
|
|
|
|
|
$
|
2,883,734
|
|
|
|
|
|
|
|
|
$
|
2,648,030
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Liabilities and stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest checking, savings and money market
|
|
$
|
1,659,414
|
|
|
13,650
|
|
|
0.82
|
%
|
|
$
|
1,455,947
|
|
|
6,757
|
|
|
0.46
|
%
|
|
$
|
1,380,584
|
|
|
3,448
|
|
|
0.25
|
%
|
|||
CDs
|
|
300,810
|
|
|
6,000
|
|
|
1.99
|
%
|
|
242,077
|
|
|
3,531
|
|
|
1.46
|
%
|
|
170,427
|
|
|
1,433
|
|
|
0.84
|
%
|
||||||
Brokered CDs
|
|
15,466
|
|
|
291
|
|
|
1.88
|
%
|
|
145,645
|
|
|
2,472
|
|
|
1.70
|
%
|
|
91,522
|
|
|
1,114
|
|
|
1.22
|
%
|
||||||
Borrowed funds
|
|
15,940
|
|
|
385
|
|
|
2.42
|
%
|
|
22,250
|
|
|
383
|
|
|
1.72
|
%
|
|
49,546
|
|
|
590
|
|
|
1.19
|
%
|
||||||
Subordinated debt(5)
|
|
14,866
|
|
|
925
|
|
|
6.22
|
%
|
|
14,853
|
|
|
925
|
|
|
6.23
|
%
|
|
14,840
|
|
|
925
|
|
|
6.23
|
%
|
||||||
Total interest-bearing funding
|
|
2,006,496
|
|
|
21,251
|
|
|
1.06
|
%
|
|
1,880,772
|
|
|
14,068
|
|
|
0.75
|
%
|
|
1,706,919
|
|
|
7,510
|
|
|
0.44
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest-rate spread (tax equivalent)
|
|
|
|
|
|
|
|
3.60
|
%
|
|
|
|
|
|
|
|
3.73
|
%
|
|
|
|
|
|
|
|
3.83
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Non-interest checking
|
|
790,915
|
|
|
—
|
|
|
|
|
|
744,820
|
|
|
—
|
|
|
|
|
|
697,247
|
|
|
—
|
|
|
|
|
||||||
Total deposits, borrowed funds and subordinated debt
|
|
2,797,411
|
|
|
21,251
|
|
|
0.76
|
%
|
|
2,625,592
|
|
|
14,068
|
|
|
0.54
|
%
|
|
2,404,166
|
|
|
7,510
|
|
|
0.31
|
%
|
||||||
Other liabilities
|
|
37,913
|
|
|
|
|
|
|
|
|
20,459
|
|
|
|
|
|
|
|
|
17,919
|
|
|
|
|
|
|
|
||||||
Total liabilities
|
|
2,835,324
|
|
|
|
|
|
|
|
|
2,646,051
|
|
|
|
|
|
|
|
|
2,422,085
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Stockholders' equity
|
|
277,833
|
|
|
|
|
|
|
|
|
237,683
|
|
|
|
|
|
|
|
|
225,945
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total liabilities and stockholders' equity
|
|
$
|
3,113,157
|
|
|
|
|
|
|
|
|
$
|
2,883,734
|
|
|
|
|
|
|
|
|
$
|
2,648,030
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net interest income (tax equivalent)
|
|
|
|
|
117,435
|
|
|
|
|
|
|
|
|
110,658
|
|
|
|
|
|
|
|
|
100,901
|
|
|
|
|
||||||
Net interest margin (tax equivalent)
|
|
|
|
|
|
3.95
|
%
|
|
|
|
|
|
3.97
|
%
|
|
|
|
|
|
3.97
|
%
|
||||||||||||
Less tax equivalent adjustment
|
|
|
|
1,578
|
|
|
|
|
|
|
1,823
|
|
|
|
|
|
|
3,379
|
|
|
|
||||||||||||
Net interest income
|
|
|
|
$
|
115,857
|
|
|
|
|
|
|
$
|
108,835
|
|
|
|
|
|
|
$
|
97,522
|
|
|
|
|||||||||
Net interest margin
|
|
|
|
|
|
|
|
3.89
|
%
|
|
|
|
|
|
|
|
3.91
|
%
|
|
|
|
|
|
|
|
3.84
|
%
|
(1)
|
Average yields and interest income are presented on a tax equivalent basis, calculated using a U.S federal income tax rate of 21% in both 2019 and 2018, and 35% in 2017, based on tax equivalent adjustments associated with tax exempt loans and investments interest income.
|
(2)
|
Average loans and loans held for sale include non-accrual loans and are net of average deferred loan fees.
|
(3)
|
Average investment balances are presented at average amortized cost.
|
(4)
|
Average other interest-earning assets includes interest-earning deposits, fed funds sold, and FHLB stock.
|
(5)
|
The subordinated debt is net of average deferred debt issuance costs.
|
|
|
Year Ended December 31,
|
|||||||||||||
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
Change
|
|
% Change
|
|||||||
Wealth management fees
|
|
$
|
5,494
|
|
|
$
|
5,624
|
|
|
$
|
(130
|
)
|
|
(2
|
)%
|
Deposit and interchange fees
|
|
6,870
|
|
|
6,234
|
|
|
636
|
|
|
10
|
%
|
|||
Income on bank-owned life insurance, net
|
|
638
|
|
|
672
|
|
|
(34
|
)
|
|
(5
|
)%
|
|||
Net gains (losses) on sales of available-for-sale securities
|
|
146
|
|
|
(2,950
|
)
|
|
3,096
|
|
|
(105
|
)%
|
|||
Net gains on sales of loans
|
|
469
|
|
|
260
|
|
|
209
|
|
|
80
|
%
|
|||
Other income
|
|
2,702
|
|
|
2,150
|
|
|
552
|
|
|
26
|
%
|
|||
Total non-interest income
|
|
$
|
16,319
|
|
|
$
|
11,990
|
|
|
$
|
4,329
|
|
|
36
|
%
|
|
|
Year Ended December 31,
|
|||||||||||||
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
Change
|
|
% Change
|
|||||||
Salaries and employee benefits
|
|
$
|
56,059
|
|
|
$
|
51,442
|
|
|
$
|
4,617
|
|
|
9
|
%
|
Occupancy and equipment expenses
|
|
8,417
|
|
|
8,526
|
|
|
(109
|
)
|
|
(1
|
)%
|
|||
Technology and telecommunications expenses
|
|
7,590
|
|
|
6,382
|
|
|
1,208
|
|
|
19
|
%
|
|||
Advertising and public relations expenses
|
|
2,962
|
|
|
3,182
|
|
|
(220
|
)
|
|
(7
|
)%
|
|||
Audit, legal and other professional fees
|
|
2,039
|
|
|
1,725
|
|
|
314
|
|
|
18
|
%
|
|||
Deposit insurance premiums
|
|
876
|
|
|
1,697
|
|
|
(821
|
)
|
|
(48
|
)%
|
|||
Supplies and postage expenses
|
|
971
|
|
|
989
|
|
|
(18
|
)
|
|
(2
|
)%
|
|||
Other operating expenses
|
|
7,501
|
|
|
6,935
|
|
|
566
|
|
|
8
|
%
|
|||
Total non-interest expense
|
|
$
|
86,415
|
|
|
$
|
80,878
|
|
|
$
|
5,537
|
|
|
7
|
%
|
1.
|
Management's qualitative assessment would take into consideration, among other items, macroeconomic conditions, industry and market considerations, cost or margin factors, financial performance and share price. Based on the qualitative assessment, if the Company were to conclude: (a) it is "more likely than not" that the fair value of a reporting unit exceeds its book value, goodwill is deemed not impaired, or (b) it is "more likely than not" that the fair value of a reporting unit is less than its book value, a quantitative goodwill analysis must be performed.
|
2.
|
The Company may elect to forgo the qualitative assessment and perform the quantitative analysis even if management does not believe that is "more likely than not" that goodwill is impaired. The quantitative goodwill analysis compares the fair value of the reporting unit with its book value, including goodwill. If the fair value of the reporting unit equals or exceeds its book value, goodwill is deemed not impaired. If the book value of the reporting unit exceeds its fair value, a goodwill impairment loss is recognized for the difference between these amounts, not exceeding the goodwill carrying amount.
|
Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk
|
|
|
December 31, 2019
|
|
|||||
|
|
24 Months
|
|
|||||
(Dollars in thousands)
|
|
Net interest income
|
|
Percentage Change
|
|
|||
Changes in interest rates
|
|
|
|
|
|
|
|
|
Rates Rise 400 Basis Points
|
|
$
|
237,216
|
|
|
0.77
|
%
|
|
Rates Rise 200 Basis Points
|
|
237,369
|
|
|
0.83
|
%
|
|
|
Rates Unchanged
|
|
235,414
|
|
|
—
|
%
|
|
|
Rates Decline 200 Basis Points
|
|
225,422
|
|
|
(4.24
|
)%
|
|
Item 8.
|
Financial Statements and Supplementary Data
|
|
Page
|
(Dollars in thousands, except per share data)
|
|
2019
|
|
2018
|
||||
Assets
|
|
|
|
|
|
|
||
Cash and cash equivalents:
|
|
|
|
|
|
|
||
Cash and due from banks
|
|
$
|
39,927
|
|
|
$
|
43,865
|
|
Interest-earning deposits
|
|
23,867
|
|
|
19,255
|
|
||
Total cash and cash equivalents
|
|
63,794
|
|
|
63,120
|
|
||
Investments:
|
|
|
|
|
||||
Debt securities at fair value
|
|
504,788
|
|
|
431,473
|
|
||
Equity securities at fair value
|
|
467
|
|
|
1,448
|
|
||
Total investment securities at fair value
|
|
505,255
|
|
|
432,921
|
|
||
Federal Home Loan Bank ("FHLB") stock
|
|
4,484
|
|
|
5,357
|
|
||
Loans held for sale
|
|
601
|
|
|
701
|
|
||
Loans, less allowance for loan losses of $33,614 at December 31, 2019 and $33,849 at December 31, 2018
|
|
2,531,845
|
|
|
2,353,657
|
|
||
Premises and equipment, net
|
|
45,419
|
|
|
37,588
|
|
||
Lease right-of-use asset
|
|
19,048
|
|
|
—
|
|
||
Accrued interest receivable
|
|
12,295
|
|
|
11,462
|
|
||
Deferred income taxes, net
|
|
8,732
|
|
|
11,747
|
|
||
Bank-owned life insurance
|
|
30,776
|
|
|
30,138
|
|
||
Prepaid income taxes
|
|
572
|
|
|
732
|
|
||
Prepaid expenses and other assets
|
|
6,572
|
|
|
11,279
|
|
||
Goodwill
|
|
5,656
|
|
|
5,656
|
|
||
Total assets
|
|
$
|
3,235,049
|
|
|
$
|
2,964,358
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
||
Liabilities
|
|
|
|
|
|
|
||
Deposits:
|
|
|
|
|
||||
Customer deposits
|
|
$
|
2,786,730
|
|
|
$
|
2,507,999
|
|
Brokered deposits
|
|
—
|
|
|
56,783
|
|
||
Total deposits
|
|
2,786,730
|
|
|
2,564,782
|
|
||
Borrowed funds
|
|
96,173
|
|
|
100,492
|
|
||
Subordinated debt
|
|
14,872
|
|
|
14,860
|
|
||
Lease liability
|
|
18,104
|
|
|
—
|
|
||
Accrued expenses and other liabilities
|
|
21,683
|
|
|
27,948
|
|
||
Accrued interest payable
|
|
846
|
|
|
979
|
|
||
Total liabilities
|
|
2,938,408
|
|
|
2,709,061
|
|
||
Commitments and Contingencies
|
|
|
|
|
|
|
||
Stockholders' Equity
|
|
|
|
|
|
|
||
Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued
|
|
—
|
|
|
—
|
|
||
Common stock $0.01 par value per share; 40,000,000 shares authorized; 11,825,331 shares issued and outstanding at December 31, 2019 and 11,708,218 shares issued and outstanding at December 31, 2018
|
|
118
|
|
|
117
|
|
||
Additional paid-in capital
|
|
94,170
|
|
|
91,281
|
|
||
Retained earnings
|
|
191,843
|
|
|
165,183
|
|
||
Accumulated other comprehensive income (loss)
|
|
10,510
|
|
|
(1,284
|
)
|
||
Total stockholders' equity
|
|
296,641
|
|
|
255,297
|
|
||
Total liabilities and stockholders' equity
|
|
$
|
3,235,049
|
|
|
$
|
2,964,358
|
|
(Dollars in thousands, except per share data)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Interest and dividend income:
|
|
|
|
|
|
|
|
|
|
|||
Loans and loans held for sale
|
|
$
|
122,082
|
|
|
$
|
111,090
|
|
|
$
|
96,559
|
|
Investment securities
|
|
13,135
|
|
|
10,728
|
|
|
8,045
|
|
|||
Other interest-earning assets
|
|
1,891
|
|
|
1,085
|
|
|
428
|
|
|||
Total interest and dividend income
|
|
137,108
|
|
|
122,903
|
|
|
105,032
|
|
|||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|||
Deposits
|
|
19,941
|
|
|
12,760
|
|
|
5,995
|
|
|||
Borrowed funds
|
|
385
|
|
|
383
|
|
|
590
|
|
|||
Subordinated debt
|
|
925
|
|
|
925
|
|
|
925
|
|
|||
Total interest expense
|
|
21,251
|
|
|
14,068
|
|
|
7,510
|
|
|||
Net interest income
|
|
115,857
|
|
|
108,835
|
|
|
97,522
|
|
|||
Provision for loan losses
|
|
1,180
|
|
|
2,250
|
|
|
1,430
|
|
|||
Net interest income after provision for loan losses
|
|
114,677
|
|
|
106,585
|
|
|
96,092
|
|
|||
Non-interest income:
|
|
|
|
|
|
|
|
|
|
|||
Wealth management fees
|
|
5,494
|
|
|
5,624
|
|
|
5,149
|
|
|||
Deposit and interchange fees
|
|
6,870
|
|
|
6,234
|
|
|
6,011
|
|
|||
Income on bank-owned life insurance, net
|
|
638
|
|
|
672
|
|
|
701
|
|
|||
Net gains (losses) on sales of available-for-sale debt securities
|
|
146
|
|
|
(2,950
|
)
|
|
(2,550
|
)
|
|||
Net gains on sales of available-for-sale equity securities
|
|
—
|
|
|
—
|
|
|
3,266
|
|
|||
Net gains on sales of loans
|
|
469
|
|
|
260
|
|
|
460
|
|
|||
Other income
|
|
2,702
|
|
|
2,150
|
|
|
2,637
|
|
|||
Total non-interest income
|
|
16,319
|
|
|
11,990
|
|
|
15,674
|
|
|||
Non-interest expense:
|
|
|
|
|
|
|
|
|
|
|||
Salaries and employee benefits
|
|
56,059
|
|
|
51,442
|
|
|
48,613
|
|
|||
Occupancy and equipment expenses
|
|
8,417
|
|
|
8,526
|
|
|
7,960
|
|
|||
Technology and telecommunications expenses
|
|
7,590
|
|
|
6,382
|
|
|
6,372
|
|
|||
Advertising and public relations expenses
|
|
2,962
|
|
|
3,182
|
|
|
2,621
|
|
|||
Audit, legal and other professional fees
|
|
2,039
|
|
|
1,725
|
|
|
1,565
|
|
|||
Deposit insurance premiums
|
|
876
|
|
|
1,697
|
|
|
1,535
|
|
|||
Supplies and postage expenses
|
|
971
|
|
|
989
|
|
|
999
|
|
|||
Other operating expenses
|
|
7,501
|
|
|
6,935
|
|
|
6,480
|
|
|||
Total non-interest expense
|
|
86,415
|
|
|
80,878
|
|
|
76,145
|
|
|||
Income before income taxes
|
|
44,581
|
|
|
37,697
|
|
|
35,621
|
|
|||
Provision for income taxes
|
|
10,381
|
|
|
8,816
|
|
|
16,228
|
|
|||
Net income
|
|
$
|
34,200
|
|
|
$
|
28,881
|
|
|
$
|
19,393
|
|
|
|
|
|
|
|
|
||||||
Basic earnings per share
|
|
$
|
2.90
|
|
|
$
|
2.47
|
|
|
$
|
1.68
|
|
Diluted earnings per share
|
|
$
|
2.89
|
|
|
$
|
2.46
|
|
|
$
|
1.66
|
|
|
|
|
|
|
|
|
||||||
Basic weighted average common shares outstanding
|
|
11,789,570
|
|
|
11,679,520
|
|
|
11,568,430
|
|
|||
Diluted weighted average common shares outstanding
|
|
11,829,818
|
|
|
11,750,462
|
|
|
11,651,763
|
|
|
|
|
||||||||||
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net income
|
|
$
|
34,200
|
|
|
$
|
28,881
|
|
|
$
|
19,393
|
|
Other comprehensive income (loss), net of taxes:
|
|
|
|
|
|
|
||||||
Gross unrealized holding gains (losses) on available-for-sale securities arising during the period
|
|
15,330
|
|
|
(5,143
|
)
|
|
2,424
|
|
|||
Income tax (expense) benefit
|
|
(3,422
|
)
|
|
1,162
|
|
|
(855
|
)
|
|||
Net unrealized holding gains (losses), net of tax
|
|
11,908
|
|
|
(3,981
|
)
|
|
1,569
|
|
|||
Less: Reclassification adjustment for net gains (losses) included in net income
|
|
|
|
|
|
|
||||||
Net realized gains (losses) on sales of available-for-sale securities during the period
|
|
146
|
|
|
(2,950
|
)
|
|
716
|
|
|||
Income tax (expense) benefit
|
|
(32
|
)
|
|
669
|
|
|
(247
|
)
|
|||
Reclassification adjustment for gains (losses) realized, net of tax
|
|
114
|
|
|
(2,281
|
)
|
|
469
|
|
|||
|
|
|
|
|
|
|
||||||
Total other comprehensive income (loss), net
|
|
11,794
|
|
|
(1,700
|
)
|
|
1,100
|
|
|||
Comprehensive income
|
|
$
|
45,994
|
|
|
$
|
27,181
|
|
|
$
|
20,493
|
|
|
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Retained Earnings
|
|
Accumulated Other
Comprehensive
Income/(Loss)
|
|
Total
Stockholders’ Equity
|
|||||||||||||
(Dollars in thousands, except share data)
|
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||
Balance at December 31, 2016
|
|
11,475,742
|
|
|
$
|
115
|
|
|
$
|
85,421
|
|
|
$
|
130,008
|
|
|
$
|
(758
|
)
|
|
$
|
214,786
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
19,393
|
|
|
|
|
|
19,393
|
|
|||||
Cumulative effect adjustment for adoption of new accounting pronouncements
|
|
|
|
|
|
13
|
|
|
(87
|
)
|
|
74
|
|
|
—
|
|
|||||||
Other comprehensive loss, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,100
|
|
|
1,100
|
|
|||||
Common stock dividend declared ($0.54 per share)
|
|
|
|
|
|
|
|
|
|
(6,241
|
)
|
|
|
|
(6,241
|
)
|
|||||||
Common stock issued under dividend reinvestment plan
|
|
44,752
|
|
|
—
|
|
|
1,494
|
|
|
|
|
|
|
|
1,494
|
|
||||||
Common stock issued, other
|
|
2,798
|
|
|
—
|
|
|
96
|
|
|
|
|
|
|
96
|
|
|||||||
Stock-based compensation
|
|
58,037
|
|
|
1
|
|
|
1,757
|
|
|
|
|
|
|
|
|
1,758
|
|
|||||
Net settlement for employee taxes on restricted stock and options
|
|
(15,185
|
)
|
|
—
|
|
|
(931
|
)
|
|
|
|
|
|
|
|
(931
|
)
|
|||||
Stock option exercised, net
|
|
43,709
|
|
|
—
|
|
|
355
|
|
|
|
|
|
|
355
|
|
|||||||
Balance at December 31, 2017
|
|
11,609,853
|
|
|
$
|
116
|
|
|
$
|
88,205
|
|
|
$
|
143,073
|
|
|
$
|
416
|
|
|
$
|
231,810
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
28,881
|
|
|
|
|
|
28,881
|
|
|||||
Other comprehensive income, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,700
|
)
|
|
(1,700
|
)
|
|||||
Common stock dividend declared ($0.58 per share)
|
|
|
|
|
|
|
|
|
|
|
(6,771
|
)
|
|
|
|
|
(6,771
|
)
|
|||||
Common stock issued under dividend reinvestment plan
|
|
37,999
|
|
|
—
|
|
|
1,328
|
|
|
|
|
|
|
|
|
1,328
|
|
|||||
Common stock issued, other
|
|
3,440
|
|
|
—
|
|
|
121
|
|
|
|
|
|
|
121
|
|
|||||||
Stock-based compensation
|
|
51,107
|
|
|
1
|
|
|
1,878
|
|
|
|
|
|
|
|
|
1,879
|
|
|||||
Net settlement for employee taxes on restricted stock and options
|
|
(15,106
|
)
|
|
—
|
|
|
(559
|
)
|
|
|
|
|
|
(559
|
)
|
|||||||
Stock options exercised, net
|
|
20,925
|
|
|
—
|
|
|
308
|
|
|
|
|
|
|
|
|
308
|
|
|||||
Balance at December 31, 2018
|
|
11,708,218
|
|
|
$
|
117
|
|
|
$
|
91,281
|
|
|
$
|
165,183
|
|
|
$
|
(1,284
|
)
|
|
$
|
255,297
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
34,200
|
|
|
|
|
|
34,200
|
|
|||||
Other comprehensive loss, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,794
|
|
|
11,794
|
|
|||||
Common stock dividend declared ($0.64 per share)
|
|
|
|
|
|
|
|
|
|
|
(7,540
|
)
|
|
|
|
|
(7,540
|
)
|
|||||
Common stock issued under dividend reinvestment plan
|
|
39,176
|
|
|
—
|
|
|
1,169
|
|
|
|
|
|
|
|
|
1,169
|
|
|||||
Common stock issued, other
|
|
2,305
|
|
|
—
|
|
|
69
|
|
|
|
|
|
|
69
|
|
|||||||
Stock-based compensation
|
|
61,318
|
|
|
1
|
|
|
1,868
|
|
|
|
|
|
|
|
|
1,869
|
|
|||||
Net settlement for employee taxes on restricted stock and options
|
|
(8,223
|
)
|
|
—
|
|
|
(402
|
)
|
|
|
|
|
|
(402
|
)
|
|||||||
Stock options exercised, net
|
|
22,537
|
|
|
—
|
|
|
185
|
|
|
|
|
|
|
|
|
185
|
|
|||||
Balance at December 31, 2019
|
|
11,825,331
|
|
|
$
|
118
|
|
|
$
|
94,170
|
|
|
$
|
191,843
|
|
|
$
|
10,510
|
|
|
$
|
296,641
|
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|||
Net income
|
|
$
|
34,200
|
|
|
$
|
28,881
|
|
|
$
|
19,393
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Provision for loan losses
|
|
1,180
|
|
|
2,250
|
|
|
1,430
|
|
|||
Depreciation and amortization
|
|
6,142
|
|
|
6,836
|
|
|
7,028
|
|
|||
Stock-based compensation expense
|
|
1,872
|
|
|
1,848
|
|
|
1,753
|
|
|||
Income on bank-owned life insurance, net
|
|
(638
|
)
|
|
(672
|
)
|
|
(701
|
)
|
|||
Net (gains) losses on sales of debt securities
|
|
(146
|
)
|
|
2,950
|
|
|
2,550
|
|
|||
Net (gains) losses on equity securities
|
|
(367
|
)
|
|
204
|
|
|
(3,266
|
)
|
|||
Mortgage loans originated for sale
|
|
(25,562
|
)
|
|
(13,026
|
)
|
|
(19,820
|
)
|
|||
Proceeds from mortgage loans sold
|
|
26,131
|
|
|
12,793
|
|
|
21,641
|
|
|||
Net gains on sales of loans
|
|
(469
|
)
|
|
(260
|
)
|
|
(460
|
)
|
|||
Net gains on sales of OREO
|
|
(34
|
)
|
|
—
|
|
|
—
|
|
|||
Changes in:
|
|
|
|
|
|
|
||||||
Decrease (increase) in other assets
|
|
136
|
|
|
(1,815
|
)
|
|
6,026
|
|
|||
Increase in other liabilities
|
|
1,174
|
|
|
1,812
|
|
|
2,357
|
|
|||
Net cash provided by operating activities
|
|
43,619
|
|
|
41,801
|
|
|
37,931
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|||
Proceeds from sales of debt securities
|
|
13,623
|
|
|
129,862
|
|
|
119,526
|
|
|||
Purchase of debt securities
|
|
(126,872
|
)
|
|
(208,978
|
)
|
|
(186,628
|
)
|
|||
Proceeds from maturities, calls and pay-downs of investment securities
|
|
48,805
|
|
|
42,278
|
|
|
32,643
|
|
|||
Net proceeds from the sale (purchases) of equity securities
|
|
1,348
|
|
|
(1,631
|
)
|
|
13,680
|
|
|||
Net proceeds (purchases of) from sales of FHLB capital stock
|
|
873
|
|
|
(142
|
)
|
|
(3,121
|
)
|
|||
Net increase in loans
|
|
(179,623
|
)
|
|
(118,918
|
)
|
|
(247,032
|
)
|
|||
Additions to premises and equipment, net
|
|
(12,498
|
)
|
|
(5,297
|
)
|
|
(8,211
|
)
|
|||
Proceeds from OREO sales
|
|
289
|
|
|
—
|
|
|
—
|
|
|||
Net cash used in investing activities
|
|
(254,055
|
)
|
|
(162,826
|
)
|
|
(279,143
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|||
Net increase in deposits
|
|
221,948
|
|
|
123,420
|
|
|
172,441
|
|
|||
Net (decrease) increase in borrowed funds
|
|
(4,319
|
)
|
|
11,492
|
|
|
78,329
|
|
|||
Cash dividends paid, net of DRP
|
|
(6,371
|
)
|
|
(5,443
|
)
|
|
(4,747
|
)
|
|||
Proceeds from issuance of common stock
|
|
69
|
|
|
121
|
|
|
96
|
|
|||
Net settlement for employee taxes on restricted stock and options
|
|
(402
|
)
|
|
(559
|
)
|
|
(931
|
)
|
|||
Net proceeds from stock option exercises
|
|
185
|
|
|
308
|
|
|
355
|
|
|||
Net cash provided by financing activities
|
|
211,110
|
|
|
129,339
|
|
|
245,543
|
|
|||
|
|
|
|
|
|
|
||||||
Net increase in cash and cash equivalents
|
|
674
|
|
|
8,314
|
|
|
4,331
|
|
|||
Cash and cash equivalents at beginning of year
|
|
63,120
|
|
|
54,806
|
|
|
50,475
|
|
|||
Cash and cash equivalents at end of year
|
|
$
|
63,794
|
|
|
$
|
63,120
|
|
|
$
|
54,806
|
|
|
|
|
|
|
|
|
(1)
|
Summary of Significant Accounting Policies
|
Bank premises, land improvements, and leasehold improvements
|
|
10 to 39 years
|
Computer software and equipment
|
|
3 to 5 years
|
Furniture, fixtures and equipment
|
|
3 to 10 years
|
(2)
|
Investment Securities
|
|
|
2019
|
||||||||||||||
(Dollars in thousands)
|
|
Amortized
cost
|
|
Unrealized
gains
|
|
Unrealized
losses
|
|
Fair Value
|
||||||||
Federal agency obligations(1)
|
|
$
|
999
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
1,004
|
|
Residential federal agency MBS(1)
|
|
190,392
|
|
|
2,599
|
|
|
333
|
|
|
192,658
|
|
||||
Commercial federal agency MBS(1)
|
|
111,182
|
|
|
3,453
|
|
|
—
|
|
|
114,635
|
|
||||
Municipal securities taxable
|
|
79,095
|
|
|
2,726
|
|
|
134
|
|
|
81,687
|
|
||||
Municipal securities tax exempt
|
|
95,342
|
|
|
4,696
|
|
|
—
|
|
|
100,038
|
|
||||
Corporate bonds
|
|
13,826
|
|
|
485
|
|
|
—
|
|
|
14,311
|
|
||||
CDs(2)
|
|
454
|
|
|
1
|
|
|
—
|
|
|
455
|
|
||||
Total debt securities, at fair value
|
|
$
|
491,290
|
|
|
$
|
13,965
|
|
|
$
|
467
|
|
|
$
|
504,788
|
|
|
|
2018
|
||||||||||||||
(Dollars in thousands)
|
|
Amortized
cost
|
|
Unrealized
gains
|
|
Unrealized
losses
|
|
Fair Value
|
||||||||
Federal agency obligations(1)
|
|
$
|
7,994
|
|
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
7,975
|
|
Residential federal agency MBS(1)
|
|
174,701
|
|
|
633
|
|
|
2,608
|
|
|
172,726
|
|
||||
Commercial federal agency MBS(1)
|
|
93,800
|
|
|
609
|
|
|
430
|
|
|
93,979
|
|
||||
Municipal securities taxable
|
|
34,491
|
|
|
448
|
|
|
198
|
|
|
34,741
|
|
||||
Municipal securities tax exempt
|
|
107,256
|
|
|
674
|
|
|
628
|
|
|
107,302
|
|
||||
Corporate bonds
|
|
13,967
|
|
|
24
|
|
|
185
|
|
|
13,806
|
|
||||
CDs(2)
|
|
950
|
|
|
—
|
|
|
6
|
|
|
944
|
|
||||
Total debt securities, at fair value
|
|
$
|
433,159
|
|
|
$
|
2,388
|
|
|
$
|
4,074
|
|
|
$
|
431,473
|
|
(1)
|
These categories may include investments issued or guaranteed by government sponsored enterprises such as Fannie Mae ("FNMA"), Freddie Mac ("FHLMC"), Federal Farm Credit Bank ("FFCB"), or one of several Federal Home Loan Banks, as well as, investments guaranteed by Ginnie Mae ("GNMA"), a wholly-owned government entity.
|
(2)
|
CDs represent term deposits issued by banks that are subject to FDIC insurance and purchased on the open market.
|
|
|
2019
|
|||||||||||||||||||||||||
|
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
|||||||||||||||||||||
(Dollars in thousands)
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
# of holdings
|
|||||||||||||
Residential federal agency MBS
|
|
$
|
36,464
|
|
|
$
|
263
|
|
|
$
|
5,060
|
|
|
$
|
70
|
|
|
$
|
41,524
|
|
|
$
|
333
|
|
|
11
|
|
Municipal securities taxable
|
|
16,826
|
|
|
134
|
|
|
—
|
|
|
—
|
|
|
16,826
|
|
|
134
|
|
|
15
|
|
||||||
Total temporarily impaired debt securities
|
|
$
|
53,290
|
|
|
$
|
397
|
|
|
$
|
5,060
|
|
|
$
|
70
|
|
|
$
|
58,350
|
|
|
$
|
467
|
|
|
26
|
|
|
|
2018
|
|||||||||||||||||||||||||
|
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
|||||||||||||||||||||
(Dollars in thousands)
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
# of holdings
|
|||||||||||||
Federal agency obligations
|
|
$
|
997
|
|
|
$
|
1
|
|
|
$
|
6,978
|
|
|
$
|
18
|
|
|
$
|
7,975
|
|
|
$
|
19
|
|
|
3
|
|
Residential federal agency MBS
|
|
26,147
|
|
|
597
|
|
|
81,158
|
|
|
2,011
|
|
|
107,305
|
|
|
2,608
|
|
|
25
|
|
||||||
Commercial federal agency MBS
|
|
3,258
|
|
|
11
|
|
|
18,717
|
|
|
419
|
|
|
21,975
|
|
|
430
|
|
|
9
|
|
||||||
Municipal securities taxable
|
|
491
|
|
|
9
|
|
|
8,730
|
|
|
189
|
|
|
9,221
|
|
|
198
|
|
|
14
|
|
||||||
Municipal securities tax exempt
|
|
14,545
|
|
|
99
|
|
|
32,535
|
|
|
529
|
|
|
47,080
|
|
|
628
|
|
|
69
|
|
||||||
Corporate bonds
|
|
5,277
|
|
|
36
|
|
|
5,653
|
|
|
149
|
|
|
10,930
|
|
|
185
|
|
|
63
|
|
||||||
CDs
|
|
—
|
|
|
—
|
|
|
944
|
|
|
6
|
|
|
944
|
|
|
6
|
|
|
4
|
|
||||||
Total temporarily impaired debt securities
|
|
$
|
50,715
|
|
|
$
|
753
|
|
|
$
|
154,715
|
|
|
$
|
3,321
|
|
|
$
|
205,430
|
|
|
$
|
4,074
|
|
|
187
|
|
(Dollars in thousands)
|
|
Amortized Cost
|
|
Fair Value
|
||||
Due in one year or less
|
|
$
|
6,630
|
|
|
$
|
6,660
|
|
Due after one, but within five years
|
|
71,695
|
|
|
73,737
|
|
||
Due after five, but within ten years
|
|
186,029
|
|
|
193,368
|
|
||
Due after ten years
|
|
226,936
|
|
|
231,023
|
|
||
Total debt securities
|
|
$
|
491,290
|
|
|
$
|
504,788
|
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Amortized cost of debt securities sold(1)
|
|
$
|
11,621
|
|
|
$
|
122,652
|
|
|
$
|
133,812
|
|
Gross realized gains on sales(2)
|
|
149
|
|
|
25
|
|
|
38
|
|
|||
Gross realized losses on sales
|
|
(3
|
)
|
|
(2,975
|
)
|
|
(2,588
|
)
|
|||
Total proceeds from sales of debt securities
|
|
$
|
11,767
|
|
|
$
|
119,702
|
|
|
$
|
131,262
|
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
||||
Net gains (losses) recognized during the period on equity securities
|
|
$
|
367
|
|
|
$
|
(204
|
)
|
Less: Net gains (losses) recognized on equity securities sold during the period
|
|
159
|
|
|
—
|
|
||
Unrealized gains (losses) recognized during the reporting period on equity securities still held at year end
|
|
$
|
208
|
|
|
$
|
(204
|
)
|
(Dollars in thousands)
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Commercial real estate
|
|
$
|
1,394,179
|
|
|
$
|
1,303,879
|
|
Commercial and industrial
|
|
501,227
|
|
|
514,253
|
|
||
Commercial construction
|
|
317,477
|
|
|
234,430
|
|
||
Total commercial loans
|
|
2,212,883
|
|
|
2,052,562
|
|
||
|
|
|
|
|
||||
Residential mortgages
|
|
247,373
|
|
|
231,501
|
|
||
Home equity loans and lines
|
|
98,252
|
|
|
96,116
|
|
||
Consumer
|
|
10,054
|
|
|
10,241
|
|
||
Total retail loans
|
|
355,679
|
|
|
337,858
|
|
||
|
|
|
|
|
||||
Gross loans
|
|
2,568,562
|
|
|
2,390,420
|
|
||
Deferred loan origination fees, net
|
|
(3,103
|
)
|
|
(2,914
|
)
|
||
Total loans
|
|
2,565,459
|
|
|
2,387,506
|
|
||
Allowance for loan losses
|
|
(33,614
|
)
|
|
(33,849
|
)
|
||
Net loans
|
|
$
|
2,531,845
|
|
|
$
|
2,353,657
|
|
(Dollars in thousands)
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Commercial real estate
|
|
$
|
246,865
|
|
|
$
|
311,024
|
|
Residential mortgages
|
|
231,028
|
|
|
220,815
|
|
||
Home equity
|
|
7,676
|
|
|
8,382
|
|
||
Total loans pledged to FHLB
|
|
$
|
485,569
|
|
|
$
|
540,221
|
|
(4)
|
Allowance for Loan Losses
|
•
|
Several key areas of expansion and growth, including geographic market, changes in lending staff, new or expanded product lines, changes in composition and portfolio concentrations;
|
•
|
Changes in the credit trend and current volume and severity of past due loans, non-accrual loans and the severity of adversely classified and impaired loans compared to historical levels; and
|
•
|
The current economic environment and conditions (local, state and national) and their general implications to each loan category.
|
(Dollars in thousands)
|
|
Loans individually evaluated for impairment
|
|
Loans collectively evaluated for impairment
|
|
Gross Loans
|
||||||
Commercial real estate
|
|
$
|
17,515
|
|
|
$
|
1,376,664
|
|
|
$
|
1,394,179
|
|
Commercial and industrial
|
|
9,332
|
|
|
491,895
|
|
|
501,227
|
|
|||
Commercial construction
|
|
3,347
|
|
|
314,130
|
|
|
317,477
|
|
|||
Residential mortgages
|
|
1,229
|
|
|
246,144
|
|
|
247,373
|
|
|||
Home equity
|
|
411
|
|
|
97,841
|
|
|
98,252
|
|
|||
Consumer
|
|
44
|
|
|
10,010
|
|
|
10,054
|
|
|||
Total gross loans
|
|
$
|
31,878
|
|
|
$
|
2,536,684
|
|
|
$
|
2,568,562
|
|
(Dollars in thousands)
|
|
Loans individually evaluated for impairment
|
|
Loans collectively evaluated for impairment
|
|
Gross Loans
|
||||||
Commercial real estate
|
|
$
|
16,318
|
|
|
$
|
1,287,561
|
|
|
$
|
1,303,879
|
|
Commercial and industrial
|
|
12,053
|
|
|
502,200
|
|
|
514,253
|
|
|||
Commercial construction
|
|
1,736
|
|
|
232,694
|
|
|
234,430
|
|
|||
Residential mortgages
|
|
893
|
|
|
230,608
|
|
|
231,501
|
|
|||
Home equity
|
|
514
|
|
|
95,602
|
|
|
96,116
|
|
|||
Consumer
|
|
16
|
|
|
10,225
|
|
|
10,241
|
|
|||
Total gross loans
|
|
$
|
31,530
|
|
|
$
|
2,358,890
|
|
|
$
|
2,390,420
|
|
|
|
December 31, 2019
|
||||||||||||||||||
(Dollars in thousands)
|
|
Adversely Classified
|
|
Not Adversely Classified
|
|
Gross Loans
|
||||||||||||||
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
|
|||||||||||||
Commercial real estate
|
|
$
|
16,664
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,377,515
|
|
|
$
|
1,394,179
|
|
Commercial and industrial
|
|
10,900
|
|
|
2,370
|
|
|
—
|
|
|
487,957
|
|
|
501,227
|
|
|||||
Commercial construction
|
|
4,836
|
|
|
—
|
|
|
—
|
|
|
312,641
|
|
|
317,477
|
|
|||||
Residential mortgages
|
|
1,825
|
|
|
—
|
|
|
—
|
|
|
245,548
|
|
|
247,373
|
|
|||||
Home equity
|
|
455
|
|
|
—
|
|
|
—
|
|
|
97,797
|
|
|
98,252
|
|
|||||
Consumer
|
|
69
|
|
|
3
|
|
|
—
|
|
|
9,982
|
|
|
10,054
|
|
|||||
Total gross loans
|
|
$
|
34,749
|
|
|
$
|
2,373
|
|
|
$
|
—
|
|
|
$
|
2,531,440
|
|
|
$
|
2,568,562
|
|
|
|
December 31, 2018
|
||||||||||||||||||
(Dollars in thousands)
|
|
Adversely Classified
|
|
Not Adversely Classified
|
|
Gross Loans
|
||||||||||||||
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
|
|||||||||||||
Commercial real estate
|
|
$
|
17,714
|
|
|
$
|
240
|
|
|
$
|
—
|
|
|
$
|
1,285,925
|
|
|
$
|
1,303,879
|
|
Commercial and industrial
|
|
12,821
|
|
|
—
|
|
|
—
|
|
|
501,432
|
|
|
514,253
|
|
|||||
Commercial construction
|
|
2,262
|
|
|
—
|
|
|
—
|
|
|
232,168
|
|
|
234,430
|
|
|||||
Residential mortgages
|
|
1,820
|
|
|
—
|
|
|
—
|
|
|
229,681
|
|
|
231,501
|
|
|||||
Home equity
|
|
561
|
|
|
—
|
|
|
—
|
|
|
95,555
|
|
|
96,116
|
|
|||||
Consumer
|
|
35
|
|
|
8
|
|
|
—
|
|
|
10,198
|
|
|
10,241
|
|
|||||
Total gross loans
|
|
$
|
35,213
|
|
|
$
|
248
|
|
|
$
|
—
|
|
|
$
|
2,354,959
|
|
|
$
|
2,390,420
|
|
|
|
Balance at December 31, 2019
|
||||||||||||||||||||||||||
(Dollars in thousands)
|
|
Past Due 30-59 Days
|
|
Past Due 60-89 Days
|
|
Past Due 90 Days or More
|
|
Total Past Due Loans
|
|
Current Loans
|
|
Gross Loans
|
|
Non-accrual Loans
|
||||||||||||||
Commercial real estate
|
|
$
|
1,469
|
|
|
$
|
3,914
|
|
|
$
|
4,158
|
|
|
$
|
9,541
|
|
|
$
|
1,384,638
|
|
|
$
|
1,394,179
|
|
|
$
|
8,280
|
|
Commercial and industrial
|
|
576
|
|
|
1,034
|
|
|
265
|
|
|
1,875
|
|
|
499,352
|
|
|
501,227
|
|
|
3,285
|
|
|||||||
Commercial construction
|
|
576
|
|
|
3,325
|
|
|
1,735
|
|
|
5,636
|
|
|
311,841
|
|
|
317,477
|
|
|
1,735
|
|
|||||||
Residential mortgages
|
|
700
|
|
|
283
|
|
|
623
|
|
|
1,606
|
|
|
245,767
|
|
|
247,373
|
|
|
411
|
|
|||||||
Home equity
|
|
645
|
|
|
—
|
|
|
169
|
|
|
814
|
|
|
97,438
|
|
|
98,252
|
|
|
1,040
|
|
|||||||
Consumer
|
|
12
|
|
|
—
|
|
|
6
|
|
|
18
|
|
|
10,036
|
|
|
10,054
|
|
|
20
|
|
|||||||
Total gross loans
|
|
$
|
3,978
|
|
|
$
|
8,556
|
|
|
$
|
6,956
|
|
|
$
|
19,490
|
|
|
$
|
2,549,072
|
|
|
$
|
2,568,562
|
|
|
$
|
14,771
|
|
|
|
Balance at December 31, 2018
|
||||||||||||||||||||||||||
(Dollars in thousands)
|
|
Past Due
30-59 Days
|
|
Past Due
60-89 Days
|
|
Past Due 90 Days or More
|
|
Total Past Due Loans
|
|
Current Loans
|
|
Gross Loans
|
|
Non-accrual Loans
|
||||||||||||||
Commercial real estate
|
|
$
|
7,596
|
|
|
$
|
21
|
|
|
$
|
3,821
|
|
|
$
|
11,438
|
|
|
$
|
1,292,441
|
|
|
$
|
1,303,879
|
|
|
$
|
6,894
|
|
Commercial and industrial
|
|
619
|
|
|
17
|
|
|
2,299
|
|
|
2,935
|
|
|
511,318
|
|
|
514,253
|
|
|
3,417
|
|
|||||||
Commercial construction
|
|
4,319
|
|
|
—
|
|
|
—
|
|
|
4,319
|
|
|
230,111
|
|
|
234,430
|
|
|
176
|
|
|||||||
Residential mortgages
|
|
114
|
|
|
—
|
|
|
377
|
|
|
491
|
|
|
231,010
|
|
|
231,501
|
|
|
763
|
|
|||||||
Home equity
|
|
14
|
|
|
168
|
|
|
209
|
|
|
391
|
|
|
95,725
|
|
|
96,116
|
|
|
514
|
|
|||||||
Consumer
|
|
23
|
|
|
31
|
|
|
6
|
|
|
60
|
|
|
10,181
|
|
|
10,241
|
|
|
20
|
|
|||||||
Total gross loans
|
|
$
|
12,685
|
|
|
$
|
237
|
|
|
$
|
6,712
|
|
|
$
|
19,634
|
|
|
$
|
2,370,786
|
|
|
$
|
2,390,420
|
|
|
$
|
11,784
|
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Income that would have been recognized if non-accrual loans had been current
|
|
$
|
1,893
|
|
|
$
|
2,106
|
|
|
$
|
1,906
|
|
Less income recognized
|
|
244
|
|
|
833
|
|
|
990
|
|
|||
Reduction in interest income
|
|
$
|
1,649
|
|
|
$
|
1,273
|
|
|
$
|
916
|
|
|
|
Balance at December 31, 2019
|
||||||||||||||||||
(Dollars in thousands)
|
|
Unpaid contractual principal balance
|
|
Total recorded investment in impaired loans
|
|
Recorded investment with no allowance
|
|
Recorded investment with allowance
|
|
Related specific allowance
|
||||||||||
Commercial real estate
|
|
$
|
18,537
|
|
|
$
|
17,515
|
|
|
$
|
17,129
|
|
|
$
|
386
|
|
|
$
|
31
|
|
Commercial and industrial
|
|
11,455
|
|
|
9,332
|
|
|
7,405
|
|
|
1,927
|
|
|
974
|
|
|||||
Commercial construction
|
|
3,359
|
|
|
3,347
|
|
|
3,347
|
|
|
—
|
|
|
—
|
|
|||||
Residential mortgages
|
|
1,331
|
|
|
1,229
|
|
|
1,229
|
|
|
—
|
|
|
—
|
|
|||||
Home equity
|
|
607
|
|
|
411
|
|
|
411
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
|
44
|
|
|
44
|
|
|
—
|
|
|
44
|
|
|
44
|
|
|||||
Total
|
|
$
|
35,333
|
|
|
$
|
31,878
|
|
|
$
|
29,521
|
|
|
$
|
2,357
|
|
|
$
|
1,049
|
|
|
|
Balance at December 31, 2018
|
||||||||||||||||||
(Dollars in thousands)
|
|
Unpaid contractual principal balance
|
|
Total recorded investment in impaired loans
|
|
Recorded investment with no allowance
|
|
Recorded investment with allowance
|
|
Related specific allowance
|
||||||||||
Commercial real estate
|
|
$
|
17,140
|
|
|
$
|
16,318
|
|
|
$
|
15,948
|
|
|
$
|
370
|
|
|
$
|
55
|
|
Commercial and industrial
|
|
12,538
|
|
|
12,053
|
|
|
7,752
|
|
|
4,301
|
|
|
2,140
|
|
|||||
Commercial construction
|
|
1,804
|
|
|
1,736
|
|
|
1,736
|
|
|
—
|
|
|
—
|
|
|||||
Residential mortgages
|
|
970
|
|
|
893
|
|
|
473
|
|
|
420
|
|
|
13
|
|
|||||
Home equity
|
|
685
|
|
|
514
|
|
|
514
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
|
16
|
|
|
16
|
|
|
—
|
|
|
16
|
|
|
16
|
|
|||||
Total
|
|
$
|
33,153
|
|
|
$
|
31,530
|
|
|
$
|
26,423
|
|
|
$
|
5,107
|
|
|
$
|
2,224
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||
(Dollars in thousands)
|
|
Average recorded investment
|
|
Interest income recognized
|
|
Average recorded investment
|
|
Interest income recognized
|
|
Average recorded investment
|
|
Interest income (loss) recognized
|
||||||||||||
Commercial real estate
|
|
$
|
17,033
|
|
|
$
|
509
|
|
|
$
|
13,971
|
|
|
$
|
385
|
|
|
$
|
14,473
|
|
|
$
|
363
|
|
Commercial and industrial
|
|
11,135
|
|
|
385
|
|
|
11,801
|
|
|
373
|
|
|
12,272
|
|
|
370
|
|
||||||
Commercial construction
|
|
2,158
|
|
|
81
|
|
|
1,691
|
|
|
93
|
|
|
1,818
|
|
|
92
|
|
||||||
Residential mortgages
|
|
1,024
|
|
|
18
|
|
|
644
|
|
|
—
|
|
|
320
|
|
|
2
|
|
||||||
Home equity
|
|
447
|
|
|
—
|
|
|
498
|
|
|
—
|
|
|
482
|
|
|
(1
|
)
|
||||||
Consumer
|
|
28
|
|
|
—
|
|
|
56
|
|
|
—
|
|
|
25
|
|
|
(1
|
)
|
||||||
Total
|
|
$
|
31,825
|
|
|
$
|
993
|
|
|
$
|
28,661
|
|
|
$
|
851
|
|
|
$
|
29,390
|
|
|
$
|
825
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||
(Dollars in thousands)
|
|
Number of restructurings
|
|
Pre-modification outstanding recorded investment
|
|
Post-modification outstanding recorded investment
|
|
Number of restructurings
|
|
Pre-modification outstanding recorded investment
|
|
Post-modification outstanding recorded investment
|
||||||||||
Commercial real estate
|
|
3
|
|
|
$
|
2,047
|
|
|
$
|
1,620
|
|
|
4
|
|
|
$
|
2,342
|
|
|
$
|
2,349
|
|
Commercial and industrial
|
|
11
|
|
|
505
|
|
|
319
|
|
|
10
|
|
|
1,283
|
|
|
921
|
|
||||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential mortgages
|
|
1
|
|
|
315
|
|
|
311
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Home equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
112
|
|
|
92
|
|
||||
Consumer
|
|
3
|
|
|
34
|
|
|
31
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
18
|
|
|
$
|
2,901
|
|
|
$
|
2,281
|
|
|
16
|
|
|
$
|
3,737
|
|
|
$
|
3,362
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||
(Dollars in thousands)
|
|
Number of TDRs that defaulted
|
|
Post-modification outstanding recorded investment
|
|
Number of TDRs that defaulted
|
|
Post-modification outstanding recorded investment
|
||||||
Commercial real estate
|
|
1
|
|
|
$
|
1,400
|
|
|
1
|
|
|
$
|
82
|
|
Commercial and industrial
|
|
3
|
|
|
79
|
|
|
3
|
|
|
273
|
|
||
Commercial construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Residential mortgages
|
|
1
|
|
|
311
|
|
|
—
|
|
|
—
|
|
||
Home equity
|
|
—
|
|
|
—
|
|
|
2
|
|
|
92
|
|
||
Consumer
|
|
1
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||
Total
|
|
6
|
|
|
$
|
1,794
|
|
|
6
|
|
|
$
|
447
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||
(Dollars in thousands)
|
|
Number of
restructurings
|
|
Amount
|
|
Number of
restructurings
|
|
Amount
|
||||||
Loan advances with adequate collateral
|
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
240
|
|
Extended maturity date
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Temporary payment reduction and payment re-amortization of remaining principal over extended term
|
|
10
|
|
|
112
|
|
|
8
|
|
|
304
|
|
||
Temporary interest-only payment plan
|
|
4
|
|
|
400
|
|
|
3
|
|
|
2,349
|
|
||
Other payment concessions
|
|
4
|
|
|
1,769
|
|
|
4
|
|
|
469
|
|
||
Total
|
|
18
|
|
|
$
|
2,281
|
|
|
16
|
|
|
$
|
3,362
|
|
Amount of specific reserves included in the allowance for loan losses associated with TDRs listed above
|
|
|
|
$
|
320
|
|
|
|
|
$
|
425
|
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Balance at beginning of year
|
|
$
|
33,849
|
|
|
$
|
32,915
|
|
|
$
|
31,342
|
|
Provision
|
|
1,180
|
|
|
2,250
|
|
|
1,430
|
|
|||
Recoveries
|
|
778
|
|
|
431
|
|
|
755
|
|
|||
Less: Charge-offs
|
|
2,193
|
|
|
1,747
|
|
|
612
|
|
|||
Balance at end of year
|
|
$
|
33,614
|
|
|
$
|
33,849
|
|
|
$
|
32,915
|
|
(Dollars in thousands)
|
|
Cmml Real Estate
|
|
Cmml and Industrial
|
|
Cmml Constr
|
|
Resid. Mortgage
|
|
Home Equity
|
|
Cnsmr
|
|
Total
|
||||||||||||||
Beginning Balance
|
|
$
|
18,014
|
|
|
$
|
10,493
|
|
|
$
|
3,307
|
|
|
$
|
1,160
|
|
|
$
|
629
|
|
|
$
|
246
|
|
|
$
|
33,849
|
|
Provision
|
|
324
|
|
|
(29
|
)
|
|
842
|
|
|
35
|
|
|
(102
|
)
|
|
110
|
|
|
1,180
|
|
|||||||
Recoveries
|
|
—
|
|
|
734
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
35
|
|
|
778
|
|
|||||||
Less: Charge-offs
|
|
—
|
|
|
2,069
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
124
|
|
|
2,193
|
|
|||||||
Ending Balance
|
|
$
|
18,338
|
|
|
$
|
9,129
|
|
|
$
|
4,149
|
|
|
$
|
1,195
|
|
|
$
|
536
|
|
|
$
|
267
|
|
|
$
|
33,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Ending allowance balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allocated to loans individually evaluated for impairment
|
|
$
|
31
|
|
|
$
|
974
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
44
|
|
|
$
|
1,049
|
|
Allocated to loans collectively evaluated for impairment
|
|
$
|
18,307
|
|
|
$
|
8,155
|
|
|
$
|
4,149
|
|
|
$
|
1,195
|
|
|
$
|
536
|
|
|
$
|
223
|
|
|
$
|
32,565
|
|
(Dollars in thousands)
|
|
Cmml Real Estate
|
|
Cmml and Industrial
|
|
Cmml Constr
|
|
Resid. Mortgage
|
|
Home Equity
|
|
Cnsmr
|
|
Total
|
||||||||||||||
Beginning Balance
|
|
$
|
17,545
|
|
|
$
|
9,669
|
|
|
$
|
3,947
|
|
|
$
|
904
|
|
|
$
|
608
|
|
|
$
|
242
|
|
|
$
|
32,915
|
|
Provision
|
|
418
|
|
|
2,139
|
|
|
(640
|
)
|
|
256
|
|
|
(34
|
)
|
|
111
|
|
|
2,250
|
|
|||||||
Recoveries
|
|
51
|
|
|
278
|
|
|
—
|
|
|
—
|
|
|
55
|
|
|
47
|
|
|
431
|
|
|||||||
Less: Charge-offs
|
|
—
|
|
|
1,593
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
154
|
|
|
1,747
|
|
|||||||
Ending Balance
|
|
$
|
18,014
|
|
|
$
|
10,493
|
|
|
$
|
3,307
|
|
|
$
|
1,160
|
|
|
$
|
629
|
|
|
$
|
246
|
|
|
$
|
33,849
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Ending allowance balance:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allocated to loans individually evaluated for impairment
|
|
$
|
55
|
|
|
$
|
2,140
|
|
|
$
|
—
|
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
16
|
|
|
$
|
2,224
|
|
Allocated to loans collectively evaluated for impairment
|
|
$
|
17,959
|
|
|
$
|
8,353
|
|
|
$
|
3,307
|
|
|
$
|
1,147
|
|
|
$
|
629
|
|
|
$
|
230
|
|
|
$
|
31,625
|
|
(5)
|
Premises and Equipment
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
||||
Land and land improvements
|
|
$
|
8,435
|
|
|
$
|
6,722
|
|
Bank premises and leasehold improvements
|
|
48,184
|
|
|
42,658
|
|
||
Computer software and equipment
|
|
12,652
|
|
|
10,054
|
|
||
Furniture, fixtures and equipment
|
|
21,406
|
|
|
21,568
|
|
||
Total premises and equipment, before accumulated depreciation
|
|
90,677
|
|
|
81,002
|
|
||
|
|
|
|
|
||||
Less accumulated depreciation
|
|
(45,258
|
)
|
|
(43,414
|
)
|
||
Total premises and equipment, net of accumulated depreciation
|
|
$
|
45,419
|
|
|
$
|
37,588
|
|
(6)
|
Leases
|
(Dollars in thousands)
|
|
Operating Leases
|
||
2020
|
|
$
|
1,242
|
|
2021
|
|
1,242
|
|
|
2022
|
|
1,245
|
|
|
2023
|
|
1,252
|
|
|
2024
|
|
1,255
|
|
|
Thereafter
|
|
23,343
|
|
|
Total lease payments
|
|
$
|
29,579
|
|
Less: Imputed interest
|
|
11,475
|
|
|
Total lease liability
|
|
$
|
18,104
|
|
(7)
|
Deposits
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
||||
Non-interest checking
|
|
$
|
794,583
|
|
|
$
|
765,029
|
|
Interest-bearing checking
|
|
467,988
|
|
|
403,497
|
|
||
Savings
|
|
203,236
|
|
|
193,214
|
|
||
Money market
|
|
1,009,972
|
|
|
862,028
|
|
||
CDs $250,000 or less
|
|
220,751
|
|
|
215,200
|
|
||
CDs greater than $250,000
|
|
90,200
|
|
|
69,031
|
|
||
Total customer deposits
|
|
2,786,730
|
|
|
2,507,999
|
|
||
Brokered deposits(1)
|
|
—
|
|
|
56,783
|
|
||
Total deposits
|
|
$
|
2,786,730
|
|
|
$
|
2,564,782
|
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
||||
Due in less than twelve months
|
|
$
|
229,616
|
|
|
$
|
223,611
|
|
Due in over one year through two years
|
|
69,357
|
|
|
93,770
|
|
||
Due in over two years through three years
|
|
8,847
|
|
|
16,228
|
|
||
Due in over three years through four years
|
|
2,101
|
|
|
5,216
|
|
||
Due in over four years through five years
|
|
806
|
|
|
1,885
|
|
||
Due in over five years
|
|
224
|
|
|
304
|
|
||
Total CDs
|
|
$
|
310,951
|
|
|
$
|
341,014
|
|
(8)
|
Borrowed Funds and Subordinated Debt
|
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Average
Rate
|
|
Amount
|
|
Average
Rate
|
|
Amount
|
|
Average
Rate
|
|||||||||
Borrowed funds
|
|
$
|
96,173
|
|
|
1.86
|
%
|
|
$
|
100,492
|
|
|
2.67
|
%
|
|
$
|
89,000
|
|
|
1.54
|
%
|
Subordinated debt
|
|
14,872
|
|
|
6.22
|
%
|
|
14,860
|
|
|
6.23
|
%
|
|
14,847
|
|
|
6.23
|
%
|
|||
Total borrowed funds and subordinated debt
|
|
$
|
111,045
|
|
|
2.44
|
%
|
|
$
|
115,352
|
|
|
3.13
|
%
|
|
$
|
103,847
|
|
|
2.21
|
%
|
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
(Dollars in thousands)
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|||||||||
Overnight
|
|
$
|
92,000
|
|
|
1.85
|
%
|
|
$
|
100,000
|
|
|
2.68
|
%
|
|
$
|
39,000
|
|
|
1.59
|
%
|
Within 12 months
|
|
3,697
|
|
|
2.22
|
%
|
|
—
|
|
|
—
|
%
|
|
50,000
|
|
|
1.50
|
%
|
|||
Over 5 years
|
|
476
|
|
|
—
|
%
|
|
492
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
|
Year ended December 31,
|
|||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
(Dollars in thousands)
|
|
Average
Balance
|
|
Average
Cost
|
|
Average
Balance
|
|
Average
Cost
|
|
Average
Balance
|
|
Average
Cost
|
|||||||||
FHLB advances
|
|
$
|
15,885
|
|
|
2.42
|
%
|
|
$
|
22,250
|
|
|
1.72
|
%
|
|
$
|
49,546
|
|
|
1.19
|
%
|
Other borrowings
|
|
55
|
|
|
2.64
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|||
Total borrowed funds
|
|
$
|
15,940
|
|
|
2.42
|
%
|
|
$
|
22,250
|
|
|
1.72
|
%
|
|
$
|
49,546
|
|
|
1.19
|
%
|
(9)
|
Derivatives and Hedging Activities
|
|
|
As of December 31, 2019
|
|
As of December 31, 2018
|
||||||||||||
(Dollars in thousands)
|
|
Asset Derivatives
|
|
Liability Derivatives
|
|
Asset Derivatives
|
|
Liability Derivatives
|
||||||||
Interest-rate contracts - pay floating, received fixed
|
|
$
|
625
|
|
|
$
|
187
|
|
|
$
|
45
|
|
|
$
|
723
|
|
Interest-rate contracts - pay fixed, receive floating
|
|
—
|
|
|
438
|
|
|
678
|
|
|
—
|
|
||||
Total interest-rate swaps
|
|
$
|
625
|
|
|
$
|
625
|
|
|
$
|
723
|
|
|
$
|
723
|
|
|
|
As of December 31, 2019
|
||||||||||
(Dollars in thousands)
|
|
Gross Amounts of Recognized Liabilities
|
|
Gross Amounts Offset in the Consolidated Balance Sheet
|
|
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet
|
||||||
Liabilities Derivatives
|
|
|
|
|
|
|
||||||
Interest-rate contracts - pay fixed, receive floating
|
|
$
|
625
|
|
|
$
|
187
|
|
|
$
|
438
|
|
|
|
As of December 31, 2018
|
||||||||||
(Dollars in thousands)
|
|
Gross Amounts of Recognized Assets
|
|
Gross Amounts Offset in the Consolidated Balance Sheet
|
|
Net Amounts of Assets Presented in the Consolidated Balance Sheet
|
||||||
Asset Derivatives
|
|
|
|
|
|
|
||||||
Interest-rate contracts - pay fixed, receive floating
|
|
$
|
723
|
|
|
$
|
45
|
|
|
$
|
678
|
|
(10)
|
Commitments, Contingencies and Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
||||
Commitments to originate loans
|
|
$
|
25,930
|
|
|
$
|
71,586
|
|
Commitments to originate residential mortgages loans for sale
|
|
1,095
|
|
|
—
|
|
||
Commitments to sell residential mortgage loans
|
|
1,696
|
|
|
701
|
|
||
Letters of credit
|
|
25,284
|
|
|
23,482
|
|
||
Unadvanced portions of commercial real estate loans
|
|
20,486
|
|
|
39,311
|
|
||
Unadvanced portions of commercial loans and lines
|
|
472,419
|
|
|
453,381
|
|
||
Unadvanced portions of construction loans (commercial & residential)
|
|
294,744
|
|
|
240,019
|
|
||
Unadvanced portions of home equity lines
|
|
113,387
|
|
|
100,227
|
|
||
Unadvanced portions of consumer loans
|
|
4,209
|
|
|
4,270
|
|
(11)
|
Stockholders' Equity
|
|
|
Actual
|
|
Minimum Capital
for Capital
Adequacy
Purposes(1)
|
|
Minimum Capital
To Be
Well
Capitalized(2)
|
|||||||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
As of December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
The Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total Capital (to risk weighted assets)
|
|
$
|
328,961
|
|
|
11.88
|
%
|
|
$
|
221,435
|
|
|
8.00
|
%
|
|
N/A
|
|
N/A
|
|||
Tier 1 Capital (to risk weighted assets)
|
|
280,475
|
|
|
10.13
|
%
|
|
166,077
|
|
|
6.00
|
%
|
|
N/A
|
|
N/A
|
|||||
Tier 1 Capital (to average assets) or Leverage Ratio
|
|
280,475
|
|
|
8.86
|
%
|
|
126,661
|
|
|
4.00
|
%
|
|
N/A
|
|
N/A
|
|||||
Common equity tier 1 capital (to risk-weighted assets)
|
|
280,475
|
|
|
10.13
|
%
|
|
124,557
|
|
|
4.50
|
%
|
|
N/A
|
|
N/A
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
The Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total Capital (to risk weighted assets)
|
|
$
|
328,489
|
|
|
11.87
|
%
|
|
$
|
221,435
|
|
|
8.00
|
%
|
|
$
|
276,794
|
|
|
10.00
|
%
|
Tier 1 Capital (to risk weighted assets)
|
|
294,875
|
|
|
10.65
|
%
|
|
166,077
|
|
|
6.00
|
%
|
|
221,435
|
|
|
8.00
|
%
|
|||
Tier 1 Capital (to average assets) or Leverage Ratio
|
|
294,875
|
|
|
9.31
|
%
|
|
126,661
|
|
|
4.00
|
%
|
|
158,326
|
|
|
5.00
|
%
|
|||
Common equity tier 1 capital (to risk-weighted assets)
|
|
294,875
|
|
|
10.65
|
%
|
|
124,557
|
|
|
4.50
|
%
|
|
179,916
|
|
|
6.50
|
%
|
|
|
Actual
|
|
Minimum Capital
for Capital Adequacy Purposes(1) |
|
Minimum Capital
To Be
Well
Capitalized(2)
|
|||||||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
As of December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
The Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total Capital (to risk weighted assets)
|
|
$
|
297,402
|
|
|
11.77
|
%
|
|
$
|
202,172
|
|
|
8.00
|
%
|
|
N/A
|
|
N/A
|
|||
Tier 1 Capital (to risk weighted assets)
|
|
250,925
|
|
|
9.93
|
%
|
|
151,629
|
|
|
6.00
|
%
|
|
N/A
|
|
N/A
|
|||||
Tier 1 Capital (to average assets) or Leverage Ratio
|
|
250,925
|
|
|
8.56
|
%
|
|
117,198
|
|
|
4.00
|
%
|
|
N/A
|
|
N/A
|
|||||
Common equity tier 1 capital (to risk-weighted assets)
|
|
250,925
|
|
|
9.93
|
%
|
|
113,722
|
|
|
4.50
|
%
|
|
N/A
|
|
N/A
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
The Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total Capital (to risk weighted assets)
|
|
$
|
297,162
|
|
|
11.76
|
%
|
|
$
|
202,172
|
|
|
8.00
|
%
|
|
$
|
252,715
|
|
|
10.00
|
%
|
Tier 1 Capital (to risk weighted assets)
|
|
265,545
|
|
|
10.51
|
%
|
|
151,629
|
|
|
6.00
|
%
|
|
202,172
|
|
|
8.00
|
%
|
|||
Tier 1 Capital (to average assets) or Leverage Ratio
|
|
265,545
|
|
|
9.06
|
%
|
|
117,198
|
|
|
4.00
|
%
|
|
146,498
|
|
|
5.00
|
%
|
|||
Common equity tier 1 capital (to risk-weighted assets)
|
|
265,545
|
|
|
10.51
|
%
|
|
113,722
|
|
|
4.50
|
%
|
|
164,265
|
|
|
6.50
|
%
|
(1)
|
Before application of the capital conservation buffer of 2.50% as of December 31, 2019 and 1.875% as of December 31, 2018, see discussion below.
|
(2)
|
For the Bank to qualify as "well-capitalized," it must maintain at least the minimum ratios listed under the regulatory prompt corrective action framework. This framework does not apply to the Company.
|
|
|
Basel III Minimum for Capital Adequacy Purposes
|
|
Basel III Additional Capital Conservation Buffer
|
|
Basel III "Adequate" Ratio with Capital Conservation Buffer
|
Total Capital (to risk weighted assets)
|
|
8.00%
|
|
2.50%
|
|
10.50%
|
Tier 1 Capital (to risk weighted assets)
|
|
6.00%
|
|
2.50%
|
|
8.50%
|
Tier 1 Capital (to average assets) or Leverage Ratio
|
|
4.00%
|
|
—
|
|
4.00%
|
Common equity tier 1 capital (to risk-weighted assets)
|
|
4.50%
|
|
2.50%
|
|
7.00%
|
(12)
|
Employee Benefit Plans
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Reconciliation of benefit obligation:
|
|
|
|
|
|
|
|
|
|
|||
Benefit obligation at beginning of year
|
|
$
|
2,174
|
|
|
$
|
2,372
|
|
|
$
|
2,502
|
|
Net periodic benefit cost:
|
|
|
|
|
|
|
||||||
Interest cost
|
|
84
|
|
|
110
|
|
|
110
|
|
|||
Actuarial loss (gain)
|
|
82
|
|
|
(32
|
)
|
|
36
|
|
|||
Net periodic benefit costs
|
|
$
|
166
|
|
|
$
|
78
|
|
|
$
|
146
|
|
|
|
|
|
|
|
|
||||||
Benefits paid
|
|
(276
|
)
|
|
(276
|
)
|
|
(276
|
)
|
|||
Benefit obligation at end of year
|
|
$
|
2,064
|
|
|
$
|
2,174
|
|
|
$
|
2,372
|
|
|
|
|
|
|
|
|
||||||
Funded status:
|
|
|
|
|
|
|
|
|
|
|||
Accrued liability as of December 31
|
|
$
|
(2,064
|
)
|
|
$
|
(2,174
|
)
|
|
$
|
(2,372
|
)
|
|
|
|
|
|
|
|
||||||
Discount rate used for benefit obligation(1)
|
|
4.00
|
%
|
|
4.75
|
%
|
|
4.50
|
%
|
(1)
|
Management utilizes the Moody's 20 year AA corporate bond rates to establish the reasonableness of the discount rate used. The Company reviews and periodically updates the discount rate to reflect changes in bond market rates. The impact of the discount rate change is reflected as the actuarial gain or loss.
|
(Dollars in thousands)
|
|
||
2020
|
$
|
276
|
|
2021
|
276
|
|
|
2022
|
276
|
|
|
2023
|
276
|
|
|
2024
|
276
|
|
|
2025-2029
|
1,088
|
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Reconciliation of benefit obligation:
|
|
|
|
|
|
|
|
|
|
|||
Benefit obligation at beginning of year
|
|
$
|
2,084
|
|
|
$
|
2,032
|
|
|
$
|
1,895
|
|
Net periodic benefit cost:
|
|
|
|
|
|
|
||||||
Service cost
|
|
(16
|
)
|
|
(13
|
)
|
|
(11
|
)
|
|||
Interest cost
|
|
95
|
|
|
94
|
|
|
91
|
|
|||
Actuarial loss (gain)
|
|
261
|
|
|
(29
|
)
|
|
57
|
|
|||
Total net period cost
|
|
$
|
340
|
|
|
$
|
52
|
|
|
$
|
137
|
|
|
|
|
|
|
|
|
||||||
Benefit obligation at end of year
|
|
$
|
2,424
|
|
|
$
|
2,084
|
|
|
$
|
2,032
|
|
|
|
|
|
|
|
|
||||||
Funded status:
|
|
|
|
|
|
|
|
|
|
|||
Accrued liability as of December 31
|
|
$
|
(2,424
|
)
|
|
$
|
(2,084
|
)
|
|
$
|
(2,032
|
)
|
|
|
|
|
|
|
|
||||||
Discount rate used for benefit obligation(1)
|
|
4.00
|
%
|
|
4.75
|
%
|
|
4.50
|
%
|
(1)
|
Management utilizes the Moody's 20 year AA corporate bond rates to establish the reasonableness of the discount rate used. The Company reviews and periodically updates the discount rate to reflect changes in bond market rates. The impact of the discount rate change is reflected as the actuarial gain or loss.
|
(13)
|
Stock-Based Compensation
|
Stock Option Awards
|
|
2019
|
|
2018
|
|
2017
|
||||||
Stock options granted
|
|
23,218
|
|
|
14,755
|
|
|
15,009
|
|
|||
Term in years
|
|
10
|
|
|
10
|
|
|
10
|
|
|||
Weighted average assumptions used in the fair value model:
|
|
|
|
|
|
|
|
|
|
|||
Expected volatility
|
|
33
|
%
|
|
37
|
%
|
|
40
|
%
|
|||
Expected dividend yield
|
|
2.75
|
%
|
|
2.10
|
%
|
|
2.09
|
%
|
|||
Expected life in years
|
|
6.5
|
|
|
6.5
|
|
|
7.0
|
|
|||
Risk-free interest rate
|
|
2.58
|
%
|
|
2.86
|
%
|
|
2.35
|
%
|
|||
Weighted average market price on date of grants
|
|
$
|
29.84
|
|
|
$
|
34.33
|
|
|
$
|
30.46
|
|
Per share weighted average fair value
|
|
$
|
8.70
|
|
|
$
|
11.98
|
|
|
$
|
11.34
|
|
Fair value as a percentage of market value at grant date
|
|
29
|
%
|
|
35
|
%
|
|
37
|
%
|
(Dollars in thousands, except per share data)
|
|
Options
|
|
Weighted Average Exercise
Price Per Share
|
|
Weighted Average Remaining Life in Years
|
|
Aggregate
Intrinsic
Value
|
|||||
Outstanding December 31, 2018
|
|
183,845
|
|
|
$
|
20.90
|
|
|
4.9
|
|
$
|
2,102
|
|
Granted
|
|
23,218
|
|
|
29.84
|
|
|
|
|
|
|
||
Exercised
|
|
47,142
|
|
|
16.61
|
|
|
|
|
|
|
||
Forfeited/Expired
|
|
549
|
|
|
26.33
|
|
|
|
|
|
|
||
Outstanding December 31, 2019
|
|
159,372
|
|
|
$
|
23.45
|
|
|
5.8
|
|
$
|
1,667
|
|
|
|
|
|
|
|
|
|
|
|||||
Vested and Exercisable at December 31, 2019
|
|
100,233
|
|
|
$
|
20.11
|
|
|
4.6
|
|
$
|
1,379
|
|
Unvested Options
|
|
Options
|
|
Weighted Average Grant Date Fair Value
|
|||
Unvested December 31, 2018
|
|
56,008
|
|
|
$
|
10.00
|
|
Granted
|
|
23,218
|
|
|
8.70
|
|
|
Vested
|
|
19,613
|
|
|
9.56
|
|
|
Forfeited
|
|
474
|
|
|
9.14
|
|
|
Unvested December 31, 2019
|
|
59,139
|
|
|
$
|
9.64
|
|
Restricted Stock Awards (number of underlying shares)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Two-year vesting
|
|
8,368
|
|
|
7,280
|
|
|
6,944
|
|
|||
Four-year vesting
|
|
22,403
|
|
|
16,666
|
|
|
16,253
|
|
|||
Performance-based vesting
|
|
24,427
|
|
|
20,559
|
|
|
25,623
|
|
|||
Total restricted stock awards
|
|
55,198
|
|
|
44,505
|
|
|
48,820
|
|
|||
|
|
|
|
|
|
|
||||||
Weighted average grant date fair value
|
|
$
|
29.84
|
|
|
$
|
34.33
|
|
|
$
|
30.46
|
|
(Dollars in thousands, except per share data)
|
|
Restricted
Stock
|
|
Weighted Average Grant Price Per Share
|
|||
Unvested December 31, 2018
|
|
91,708
|
|
|
$
|
30.39
|
|
Granted
|
|
55,198
|
|
|
29.84
|
|
|
Vested/released
|
|
43,348
|
|
|
28.30
|
|
|
Forfeited
|
|
1,502
|
|
|
30.40
|
|
|
Unvested December 31, 2019
|
|
102,056
|
|
|
$
|
30.98
|
|
(14)
|
Income Taxes
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Current tax expense:
|
|
|
|
|
|
|
|
|
|
|||
Federal
|
|
$
|
7,728
|
|
|
$
|
6,485
|
|
|
$
|
8,222
|
|
State
|
|
3,028
|
|
|
2,835
|
|
|
2,271
|
|
|||
Total current tax expense
|
|
10,756
|
|
|
9,320
|
|
|
10,493
|
|
|||
Deferred tax (benefit) expense:
|
|
|
|
|
|
|
||||||
Federal
|
|
(339
|
)
|
|
(392
|
)
|
|
5,646
|
|
|||
State
|
|
(36
|
)
|
|
(112
|
)
|
|
89
|
|
|||
Total deferred tax (benefit) expense
|
|
(375
|
)
|
|
(504
|
)
|
|
5,735
|
|
|||
|
|
|
|
|
|
|
||||||
Total income tax expense
|
|
$
|
10,381
|
|
|
$
|
8,816
|
|
|
$
|
16,228
|
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Computed income tax expense at statutory rate
|
|
$
|
9,362
|
|
|
$
|
7,916
|
|
|
$
|
12,467
|
|
State income taxes, net of federal tax benefit
|
|
2,364
|
|
|
2,151
|
|
|
1,534
|
|
|||
Tax-exempt income, net of disallowance
|
|
(894
|
)
|
|
(1,034
|
)
|
|
(1,665
|
)
|
|||
Bank-owned life insurance income, net
|
|
(134
|
)
|
|
(141
|
)
|
|
(245
|
)
|
|||
Impact of change in federal statutory rate on deferred tax assets
|
|
—
|
|
|
—
|
|
|
4,761
|
|
|||
Tax benefit from stock compensation
|
|
(137
|
)
|
|
(302
|
)
|
|
(922
|
)
|
|||
Other
|
|
(180
|
)
|
|
226
|
|
|
298
|
|
|||
Total income tax expense
|
|
$
|
10,381
|
|
|
$
|
8,816
|
|
|
$
|
16,228
|
|
|
|
|
|
|
|
|
||||||
Effective income tax rate
|
|
23.3
|
%
|
|
23.4
|
%
|
|
45.6
|
%
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
||||
Deferred tax asset:
|
|
|
|
|
|
|
||
Allowance for loan losses
|
|
$
|
9,383
|
|
|
$
|
9,515
|
|
Depreciation
|
|
2,355
|
|
|
2,118
|
|
||
Net unrealized losses on equity securities
|
|
—
|
|
|
43
|
|
||
Net unrealized losses on debt securities
|
|
—
|
|
|
402
|
|
||
Supplemental employee retirement plans
|
|
695
|
|
|
611
|
|
||
Non-accrual interest
|
|
793
|
|
|
624
|
|
||
Stock-based compensation expense
|
|
573
|
|
|
555
|
|
||
Lease liability
|
|
5,054
|
|
|
—
|
|
||
Other
|
|
334
|
|
|
359
|
|
||
Total
|
|
19,187
|
|
|
14,227
|
|
||
|
|
|
|
|
||||
Deferred tax liability:
|
|
|
|
|
|
|
||
Goodwill
|
|
1,579
|
|
|
1,590
|
|
||
Net unrealized gains on equity securities
|
|
37
|
|
|
—
|
|
||
Net unrealized gains on debt securities
|
|
2,988
|
|
|
—
|
|
||
Deferred origination costs
|
|
725
|
|
|
721
|
|
||
Lease ROU asset
|
|
5,054
|
|
|
—
|
|
||
Other
|
|
72
|
|
|
169
|
|
||
Total
|
|
10,455
|
|
|
2,480
|
|
||
|
|
|
|
|
||||
Net deferred tax asset
|
|
$
|
8,732
|
|
|
$
|
11,747
|
|
(15)
|
Earnings per Share
|
|
|
2019
|
|
2018
|
|
2017
|
|||
Basic weighted average common shares outstanding
|
|
11,789,570
|
|
|
11,679,520
|
|
|
11,568,430
|
|
Dilutive shares
|
|
40,248
|
|
|
70,942
|
|
|
83,333
|
|
Diluted weighted average common shares outstanding
|
|
11,829,818
|
|
|
11,750,462
|
|
|
11,651,763
|
|
(16)
|
Fair Value Measurements
|
|
|
December 31, 2019
|
||||||||||||||
|
|
|
|
Fair Value Measurements using:
|
||||||||||||
(Dollars in thousands)
|
|
Fair Value
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||
Assets measured on a recurring basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt securities
|
|
$
|
504,788
|
|
|
$
|
—
|
|
|
$
|
504,788
|
|
|
$
|
—
|
|
Equity securities
|
|
467
|
|
|
467
|
|
|
—
|
|
|
—
|
|
||||
FHLB stock
|
|
4,484
|
|
|
—
|
|
|
4,484
|
|
|
—
|
|
||||
Interest-rate swaps
|
|
625
|
|
|
—
|
|
|
625
|
|
|
—
|
|
||||
Assets measured on a non-recurring basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impaired loans (collateral dependent)
|
|
1,268
|
|
|
—
|
|
|
—
|
|
|
1,268
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Liabilities measured on a recurring basis:
|
|
|
|
|
|
|
|
|
||||||||
Interest-rate swaps
|
|
$
|
625
|
|
|
$
|
—
|
|
|
$
|
625
|
|
|
$
|
—
|
|
|
|
December 31, 2018
|
||||||||||||||
|
|
|
|
Fair Value Measurements using:
|
||||||||||||
(Dollars in thousands)
|
|
Fair Value
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||
Assets measured on a recurring basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt securities
|
|
$
|
431,473
|
|
|
$
|
—
|
|
|
$
|
431,473
|
|
|
$
|
—
|
|
Equity securities
|
|
1,448
|
|
|
1,448
|
|
|
—
|
|
|
—
|
|
||||
FHLB stock
|
|
5,357
|
|
|
—
|
|
|
5,357
|
|
|
—
|
|
||||
Interest-rate swaps
|
|
723
|
|
|
—
|
|
|
723
|
|
|
—
|
|
||||
Assets measured on a non-recurring basis:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impaired loans (collateral dependent)
|
|
2,574
|
|
|
—
|
|
|
—
|
|
|
2,574
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Liabilities measured on a recurring basis:
|
|
|
|
|
|
|
|
|
||||||||
Interest-rate swaps
|
|
$
|
723
|
|
|
$
|
—
|
|
|
$
|
723
|
|
|
$
|
—
|
|
|
|
Fair Value
|
|
|
|
|
|
|
||||
(Dollars in thousands)
|
|
December 31, 2019
|
|
December 31, 2018
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Unobservable Input Value or Range
|
||
Assets measured on a non-recurring basis:
|
|
|
|
|
|
|
|
|
||||
Impaired loans (collateral dependent)
|
|
$1,268
|
|
$
|
2,574
|
|
|
Appraisal of Collateral
|
|
Appraisal adjustments(1)
|
|
5% - 50%
|
(1)
|
Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses.
|
|
|
December 31, 2019
|
||||||||||||||||||
|
|
|
|
Fair value measurement
|
||||||||||||||||
(Dollars in thousands)
|
|
Carrying
Amount
|
|
Fair Value
|
|
Level 1 Inputs
|
|
Level 2 Inputs
|
|
Level 3 Inputs
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loans held for sale
|
|
$
|
601
|
|
|
$
|
609
|
|
|
$
|
—
|
|
|
$
|
609
|
|
|
$
|
—
|
|
Loans, net
|
|
2,531,845
|
|
|
2,542,577
|
|
|
—
|
|
|
—
|
|
|
2,542,577
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
CDs (including brokered)
|
|
310,951
|
|
|
311,975
|
|
|
—
|
|
|
311,975
|
|
|
—
|
|
|||||
Borrowed funds
|
|
96,173
|
|
|
96,045
|
|
|
—
|
|
|
96,045
|
|
|
—
|
|
|||||
Subordinated debt
|
|
14,872
|
|
|
14,957
|
|
|
—
|
|
|
—
|
|
|
14,957
|
|
|
|
December 31, 2018
|
||||||||||||||||||
|
|
|
|
Fair value measurement
|
||||||||||||||||
(Dollars in thousands)
|
|
Carrying
Amount
|
|
Fair Value
|
|
Level 1 Inputs
|
|
Level 2 Inputs
|
|
Level 3 Inputs
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loans held for sale
|
|
$
|
701
|
|
|
$
|
710
|
|
|
$
|
—
|
|
|
$
|
710
|
|
|
$
|
—
|
|
Loans, net
|
|
2,353,657
|
|
|
2,331,076
|
|
|
—
|
|
|
—
|
|
|
2,331,076
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
CDs (including brokered)
|
|
341,014
|
|
|
339,308
|
|
|
—
|
|
|
339,308
|
|
|
—
|
|
|||||
Borrowed funds
|
|
100,492
|
|
|
100,312
|
|
|
—
|
|
|
100,312
|
|
|
—
|
|
|||||
Subordinated debt
|
|
14,860
|
|
|
14,300
|
|
|
—
|
|
|
—
|
|
|
14,300
|
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Supplemental financial data:
|
|
|
|
|
|
|
||||||
Cash paid for: interest
|
|
$
|
21,384
|
|
|
$
|
13,567
|
|
|
$
|
7,295
|
|
Cash paid for: income taxes
|
|
10,557
|
|
|
8,694
|
|
|
10,459
|
|
|||
Cash paid for: lease liability
|
|
1,205
|
|
|
—
|
|
|
—
|
|
|||
Supplemental schedule of non-cash activity:
|
|
|
|
|
|
|
||||||
Net purchases of investment securities not yet settled
|
|
810
|
|
|
5,794
|
|
|
9,154
|
|
|||
Transfer from loans to other real estate owned
|
|
255
|
|
|
—
|
|
|
—
|
|
|||
ROU lease assets: operating leases(1)
|
|
19,635
|
|
|
—
|
|
|
—
|
|
(1)
|
This represents the ROU lease asset that was recorded upon adoption of ASC 842 and new leases added in the current year.
|
|
|
December 31,
|
||||||
(Dollars in thousands, except per share data)
|
|
2019
|
|
2018
|
||||
Assets
|
|
|
|
|
|
|
||
Cash
|
|
$
|
353
|
|
|
$
|
123
|
|
Investment in subsidiaries
|
|
311,040
|
|
|
269,917
|
|
||
Other assets
|
|
201
|
|
|
198
|
|
||
Total assets
|
|
$
|
311,594
|
|
|
$
|
270,238
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
||
Liabilities
|
|
|
|
|
||||
Subordinated debt
|
|
$
|
14,872
|
|
|
$
|
14,860
|
|
Accrued interest payable
|
|
78
|
|
|
78
|
|
||
Other liabilities
|
|
3
|
|
|
3
|
|
||
Total liabilities
|
|
14,953
|
|
|
14,941
|
|
||
Stockholders' equity:
|
|
|
|
|
|
|
||
Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued
|
|
—
|
|
|
—
|
|
||
Common stock $0.01 par value per share; 40,000,000 shares authorized; 11,825,331 shares issued and outstanding at December 31, 2019 and 11,708,218 shares issued and outstanding at December 31, 2018
|
|
118
|
|
|
117
|
|
||
Additional paid-in capital
|
|
94,170
|
|
|
91,281
|
|
||
Retained earnings
|
|
191,843
|
|
|
165,183
|
|
||
Accumulated other comprehensive income (loss)
|
|
10,510
|
|
|
(1,284
|
)
|
||
Total stockholders' equity
|
|
296,641
|
|
|
255,297
|
|
||
Total liabilities and stockholders' equity
|
|
$
|
311,594
|
|
|
$
|
270,238
|
|
|
|
For the years ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Equity in undistributed net income of subsidiaries
|
|
$
|
29,329
|
|
|
$
|
25,635
|
|
|
$
|
16,922
|
|
Dividends distributed by subsidiaries
|
|
5,700
|
|
|
4,100
|
|
|
3,000
|
|
|||
Total income
|
|
35,029
|
|
|
29,735
|
|
|
19,922
|
|
|||
Interest expense
|
|
925
|
|
|
925
|
|
|
925
|
|
|||
Other operating expenses
|
|
226
|
|
|
216
|
|
|
245
|
|
|||
Total operating expenses
|
|
1,151
|
|
|
1,141
|
|
|
1,170
|
|
|||
Income before income taxes
|
|
33,878
|
|
|
28,594
|
|
|
18,752
|
|
|||
Benefit from income taxes
|
|
(322
|
)
|
|
(287
|
)
|
|
(641
|
)
|
|||
Net income
|
|
$
|
34,200
|
|
|
$
|
28,881
|
|
|
$
|
19,393
|
|
|
|
For the years ended December 31,
|
||||||||||
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|||
Net income
|
|
$
|
34,200
|
|
|
$
|
28,881
|
|
|
$
|
19,393
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|||
Equity in undistributed net income of subsidiaries
|
|
(29,329
|
)
|
|
(25,635
|
)
|
|
(16,922
|
)
|
|||
Payment from subsidiary bank for stock compensation expense
|
|
1,869
|
|
|
1,879
|
|
|
1,758
|
|
|||
Changes in:
|
|
|
|
|
|
|
||||||
(Increase) decrease in other assets
|
|
(3
|
)
|
|
213
|
|
|
832
|
|
|||
Decrease in other liabilities
|
|
12
|
|
|
13
|
|
|
14
|
|
|||
Net cash provided by operating activities
|
|
6,749
|
|
|
5,351
|
|
|
5,075
|
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|||
Cash dividends paid, net of DRP
|
|
(6,371
|
)
|
|
(5,443
|
)
|
|
(4,747
|
)
|
|||
Proceeds from issuance of common stock
|
|
69
|
|
|
121
|
|
|
96
|
|
|||
Net settlement for employee tax withholdings on restricted stock and options
|
|
(402
|
)
|
|
(559
|
)
|
|
(931
|
)
|
|||
Net proceeds from exercise of stock options
|
|
185
|
|
|
308
|
|
|
355
|
|
|||
Net cash used in financing activities
|
|
(6,519
|
)
|
|
(5,573
|
)
|
|
(5,227
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
|
230
|
|
|
(222
|
)
|
|
(152
|
)
|
|||
Cash at beginning of year
|
|
123
|
|
|
345
|
|
|
497
|
|
|||
Cash at end of year
|
|
$
|
353
|
|
|
$
|
123
|
|
|
$
|
345
|
|
(19)
|
Quarterly Results of Operations (Unaudited)
|
|
|
2019
|
||||||||||||||
(Dollars in thousands, except share data)
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
||||||||
Interest and dividend income
|
|
$
|
33,297
|
|
|
$
|
34,301
|
|
|
$
|
34,848
|
|
|
$
|
34,662
|
|
Interest expense
|
|
5,213
|
|
|
5,523
|
|
|
5,427
|
|
|
5,088
|
|
||||
Net interest income
|
|
28,084
|
|
|
28,778
|
|
|
29,421
|
|
|
29,574
|
|
||||
Provision for loan losses
|
|
(400
|
)
|
|
955
|
|
|
1,025
|
|
|
(400
|
)
|
||||
Net interest income after provision for loan losses
|
|
28,484
|
|
|
27,823
|
|
|
28,396
|
|
|
29,974
|
|
||||
Non-interest income
|
|
3,837
|
|
|
3,893
|
|
|
4,149
|
|
|
4,294
|
|
||||
Net gains (losses) on sales of available-for-sale debt securities
|
|
(1
|
)
|
|
147
|
|
|
—
|
|
|
—
|
|
||||
Non-interest expense
|
|
20,850
|
|
|
21,753
|
|
|
21,098
|
|
|
22,714
|
|
||||
Income before income taxes
|
|
11,470
|
|
|
10,110
|
|
|
11,447
|
|
|
11,554
|
|
||||
Provision for income taxes
|
|
2,774
|
|
|
2,347
|
|
|
2,445
|
|
|
2,815
|
|
||||
Net income
|
|
$
|
8,696
|
|
|
$
|
7,763
|
|
|
$
|
9,002
|
|
|
$
|
8,739
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
|
$
|
0.74
|
|
|
$
|
0.66
|
|
|
$
|
0.76
|
|
|
$
|
0.74
|
|
Diluted earnings per share
|
|
$
|
0.74
|
|
|
$
|
0.66
|
|
|
$
|
0.76
|
|
|
$
|
0.74
|
|
|
|
2018
|
||||||||||||||
(Dollars in thousands, except share data)
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
||||||||
Interest and dividend income
|
|
$
|
28,771
|
|
|
$
|
30,320
|
|
|
$
|
31,348
|
|
|
$
|
32,464
|
|
Interest expense
|
|
2,756
|
|
|
3,102
|
|
|
3,936
|
|
|
4,274
|
|
||||
Net interest income
|
|
26,015
|
|
|
27,218
|
|
|
27,412
|
|
|
28,190
|
|
||||
Provision for loan losses
|
|
1,600
|
|
|
300
|
|
|
750
|
|
|
(400
|
)
|
||||
Net interest income after provision for loan losses
|
|
24,415
|
|
|
26,918
|
|
|
26,662
|
|
|
28,590
|
|
||||
Non-interest income
|
|
3,790
|
|
|
3,733
|
|
|
3,758
|
|
|
3,659
|
|
||||
Net gains (losses) on sales of available-for-sale debt securities
|
|
1
|
|
|
—
|
|
|
(34
|
)
|
|
(2,917
|
)
|
||||
Non-interest expense
|
|
19,447
|
|
|
20,808
|
|
|
19,975
|
|
|
20,648
|
|
||||
Income before income taxes
|
|
8,759
|
|
|
9,843
|
|
|
10,411
|
|
|
8,684
|
|
||||
Provision for income taxes
|
|
1,934
|
|
|
2,269
|
|
|
2,429
|
|
|
2,184
|
|
||||
Net income
|
|
$
|
6,825
|
|
|
$
|
7,574
|
|
|
$
|
7,982
|
|
|
$
|
6,500
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
|
$
|
0.59
|
|
|
$
|
0.65
|
|
|
$
|
0.68
|
|
|
$
|
0.56
|
|
Diluted earnings per share
|
|
$
|
0.58
|
|
|
$
|
0.64
|
|
|
$
|
0.68
|
|
|
$
|
0.55
|
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
Item 9A.
|
Controls and Procedures
|
Item 9B.
|
Other Information
|
Item 15.
|
Exhibits, Financial Statement Schedules
|
(a)
|
The following documents are filed as part of this annual report:
|
(1)
|
Financial Statements
|
(2)
|
Financial Statement Schedules
|
(3)
|
Exhibits
|
3.1.1
|
3.1.2
|
3.1.3
|
3.2
|
4.1
|
4.2
|
4.3*
|
4.4*
|
10.1
|
10.2.1
|
10.2.2
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10.3.1
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10.3.2
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10.4.1
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10.4.2
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10.4.3
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10.5.1
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10.5.2
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10.5.3
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10.6.1
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10.6.2
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10.7.1
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10.8.1
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10.8.2
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10.9.1
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10.09.2
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10.10.1
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10.10.2
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10.10.3
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10.11.1
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10.11.2
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10.11.3
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10.12
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10.13
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10.14
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10.15.1
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10.15.2
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21.0*
|
23.0*
|
31.1*
|
31.2*
|
32.0*
|
101*
|
Interactive data files pursuant to Rule 405 of Regulation S-T: The following materials from Enterprise Bancorp, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2019 were formatted in XBRL (eXtensible Business Reporting Language):
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(b)
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Exhibits required by Item 601 of Regulation S-K
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(c)
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Additional Financial Statement Schedules
|
Item 16.
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Form 10-K Summary
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ENTERPRISE BANCORP, INC.
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March 10, 2020
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By:
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/s/ Joseph R. Lussier
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Joseph R. Lussier
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Executive Vice President,
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Chief Financial Officer and Treasurer
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/s/ George L. Duncan
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Chairman
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March 10, 2020
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George L. Duncan
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/s/ Kenneth S. Ansin
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Director
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March 10, 2020
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Kenneth S. Ansin
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/s/ Gino J. Baroni
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Director
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March 10, 2020
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Gino J. Baroni
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/s/ John P. Clancy, Jr.
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Director, Chief Executive Officer
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March 10, 2020
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John P. Clancy, Jr.
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/s/ John R. Clementi
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Director
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|
March 10, 2020
|
John R. Clementi
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/s/ James F. Conway, III
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Lead Director, Vice Chairman
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|
March 10, 2020
|
James F. Conway, III
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/s/ Carole A. Cowan
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Director
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March 10, 2020
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Carole A. Cowan
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/s/ Normand E. Deschene
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Director
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March 10, 2020
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Normand E. Deschene
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/s/ John T. Grady, Jr.
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Director
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March 10, 2020
|
John T. Grady, Jr.
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/s/ Mary Jane King
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Director
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|
March 10, 2020
|
Mary Jane King
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/s/ John A. Koutsos
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Director, Secretary
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March 10, 2020
|
John A. Koutsos
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/s/ Joseph C. Lerner
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Director
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March 10, 2020
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Joseph C. Lerner
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/s/ Shelagh E. Mahoney
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Director
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March 10, 2020
|
Shelagh E. Mahoney
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/s/ Richard W. Main
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Director, President
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March 10, 2020
|
Richard W. Main
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/s/ Jacqueline F. Moloney
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Director
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March 10, 2020
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Jacqueline F. Moloney
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/s/ Luis M. Pedroso
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Director
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March 10, 2020
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Luis M. Pedroso
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/s/ Michael T. Putziger
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Director
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March 10, 2020
|
Michael T. Putziger
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/s/ Carol L. Reid
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Director
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March 10, 2020
|
Carol L. Reid
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/s/ Joseph R. Lussier
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Executive Vice President, Chief
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|
March 10, 2020
|
Joseph R. Lussier
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Financial Officer and Treasurer
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/s/ Michael K. Sullivan
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Controller of the Bank
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|
March 10, 2020
|
Michael K. Sullivan
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Subsidiary
|
State of Jurisdiction
|
Business Name
|
|
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Enterprise Bank and Trust Company*
|
Massachusetts
|
Enterprise Bank
|
|
|
|
Enterprise Investment Services LLC**
|
Delaware
|
Enterprise Investment Services
|
|
|
|
Enterprise Insurance Services LLC**
|
Delaware
|
Enterprise Insurance Services
|
|
|
|
Enterprise Security Corporation**
|
Massachusetts
|
Same
|
|
|
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Enterprise Security Corporation (II)**
|
Massachusetts
|
Same
|
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|
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Enterprise Security Corporation (III)**
|
Massachusetts
|
Same
|
Date:
|
March 10, 2020
|
/s/ John P. Clancy, Jr.
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|
|
John P. Clancy, Jr.
|
|
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Chief Executive Officer (Principal Executive Officer)
|
Date:
|
March 10, 2020
|
/s/ Joseph R. Lussier
|
|
|
Joseph R. Lussier
|
|
|
Executive Vice President, Chief Financial Officer and Treasurer, (Principal Financial Officer)
|
/s/ John P. Clancy, Jr.
|
John P. Clancy, Jr.
|
Chief Executive Officer (Principal Executive Officer)
|
|
/s/ Joseph R. Lussier
|
Joseph R. Lussier
|
Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)
|