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Delaware
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04-3510455
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer Identification No.)
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60 State Street, Boston, Massachusetts
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02109
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Name of Exchange on which registered
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Common stock, par value $0.01 per share
|
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New York Stock Exchange
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Large Accelerated Filer
x
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Accelerated Filer
o
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Non-Accelerated Filer
o
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Smaller Reporting Company
o
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ITEM 16
.
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TABLE INDEX
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•
|
Greater Boston,
where the Company has relocated its headquarters in a prominent downtown Boston financial district location. This region includes 19 branch offices and several lending offices. The Company expanded in this region with its acquisition of Commerce Bancshares Corp. (“Commerce”) in October 2017. Berkshire’s asset based lending operations and the headquarters of its Firestone Financial subsidiary are located in this region. Greater Boston is the largest economic area in New England. The Greater Boston combined statistical area, including Worcester, is the sixth largest in the country. Boston is viewed as a leading commercial real estate market nationally, including foreign demand for investment real estate. Major local industries include biotechnology, technology, education, healthcare, trade, and financial service. The Boston MSA 2016 GDP was $423 billion and the Worcester 2016 MSA GDP was $42 billion.
|
•
|
Western New England
, with 23 branches, includes the Company’s traditional Berkshire County market, where it has a leading market share in many of its product lines. This region also includes Southern Vermont, and many of the region’s branches are in communities close to Route 7, which runs north/south through the valleys to the west of the Berkshire Hills and Green Mountains. This region is within commuting range of both Albany, N.Y., and Springfield, Mass., and is known throughout the world as a tourist and recreational destination area, with vacation and second home traffic from Boston and New York City. The Pittsfield 2016 MSA GDP totaled $6 billion.
|
•
|
New York,
with 39 branches serving the Albany Capital District and Central New York. Albany is the state capital and is part of New York’s Tech Valley which is gaining prominence as a world technology hub including leading edge nanotechnology initiatives representing a blend of private enterprise and public investment. The Company’s Central New York area includes operations in the Rome/Utica MSA and in the Syracuse MSA. These are markets along Interstate 90 with longstanding local industries and expansion influences from the Albany Capital District. The Albany/Schenectady 2016 MSA GDP was $52 billion, and the Rome/Utica/Syracuse total 2016 MSA GDP was $38 billion.
|
•
|
Hartford/Springfield,
with 24 branches serving the market along the Connecticut River in this region, which is the second largest economic area in New England. This region is centrally located between Boston and New York City at the crossroads of Interstate 91, which traverses the length of New England, and Interstate 90, which traverses the width of Massachusetts. This region also has easy access to Bradley International Airport, which is a major airport serving central New England. Major local industries include insurance, defense manufacturing, education, and assembly/distribution. The Springfield area is receiving major commercial investment including the first Massachusetts casino/entertainment complex. The Hartford/Springfield combined 2016 MSA GDP was $114 billion.
|
•
|
Mid-Atlantic
, with 8 branches and mortgage banking and SBA lending operations. Berkshire established its presence in this region in 2016 with its acquisition of First Choice Bank (“First Choice”) located in the Princeton, New Jersey area and its acquisition of the business assets and operations of 44 Business Capital, LLC ("44 Business Capital"), located in the greater Philadelphia area. Major local industries include bio-science, financial services, trade, iron, steel and rubber. The Philadelphia MSA 2016 GDP was $431 billion, while the Trenton 2016 MSA GDP was $27 billion.
|
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||||||||||||
|
|
|
|
Percent
|
|
|
|
Percent
|
|
|
|
Percent
|
|
|
|
Percent
|
|
|
|
Percent
|
|||||||||||||||
|
|
|
|
of
|
|
|
|
of
|
|
|
|
of
|
|
|
|
of
|
|
|
|
of
|
|||||||||||||||
(In millions)
|
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|
Amount
|
|
Total
|
|||||||||||||||
Commercial real estate
|
|
$
|
3,264
|
|
|
39
|
%
|
|
$
|
2,617
|
|
|
40
|
%
|
|
$
|
2,060
|
|
|
36
|
%
|
|
$
|
1,612
|
|
|
35
|
%
|
|
$
|
1,417
|
|
|
34
|
%
|
Commercial and industrial loans
|
|
1,804
|
|
|
22
|
|
|
1,062
|
|
|
16
|
|
|
1,048
|
|
|
18
|
|
|
804
|
|
|
17
|
|
|
687
|
|
|
16
|
|
|||||
Total commercial loans
|
|
5,068
|
|
|
61
|
|
|
3,679
|
|
|
56
|
|
|
3,108
|
|
|
54
|
|
|
2,416
|
|
|
52
|
|
|
2,104
|
|
|
50
|
|
|||||
Residential mortgages
|
|
2,103
|
|
|
25
|
|
|
1,893
|
|
|
29
|
|
|
1,815
|
|
|
32
|
|
|
1,496
|
|
|
32
|
|
|
1,384
|
|
|
33
|
|
|||||
Consumer
|
|
1,128
|
|
|
14
|
|
|
978
|
|
|
15
|
|
|
802
|
|
|
14
|
|
|
768
|
|
|
16
|
|
|
692
|
|
|
17
|
|
|||||
Total loans
|
|
$
|
8,299
|
|
|
100
|
%
|
|
$
|
6,550
|
|
|
100
|
%
|
|
$
|
5,725
|
|
|
100
|
%
|
|
$
|
4,680
|
|
|
100
|
%
|
|
$
|
4,180
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Allowance for loan losses
|
|
(52
|
)
|
|
|
|
|
(44
|
)
|
|
|
|
|
(39
|
)
|
|
|
|
|
(35
|
)
|
|
|
|
|
(33
|
)
|
|
|
|
|||||
Net loans
|
|
$
|
8,247
|
|
|
|
|
|
$
|
6,506
|
|
|
|
|
|
$
|
5,686
|
|
|
|
|
|
$
|
4,645
|
|
|
|
|
|
$
|
4,147
|
|
|
|
|
Contractual Maturity
|
|
One Year
|
|
One to
|
|
More Than
|
|
|
||||||||
(In thousands)
|
|
or Less
|
|
Five Years
|
|
Five Years
|
|
Total
|
||||||||
Construction real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial
|
|
$
|
59,909
|
|
|
$
|
206,427
|
|
|
$
|
—
|
|
|
$
|
266,336
|
|
Residential
|
|
2,717
|
|
|
124
|
|
|
2,569
|
|
|
5,410
|
|
||||
Commercial and industrial loans
|
|
307,577
|
|
|
918,136
|
|
|
578,226
|
|
|
1,803,939
|
|
||||
Total
|
|
$
|
370,203
|
|
|
$
|
1,124,687
|
|
|
$
|
580,795
|
|
|
$
|
2,075,685
|
|
(In thousands)
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Non-accruing loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial real estate
|
|
$
|
7,267
|
|
|
$
|
5,883
|
|
|
$
|
4,882
|
|
|
$
|
12,878
|
|
|
$
|
13,739
|
|
Commercial and industrial loans
|
|
7,311
|
|
|
7,523
|
|
|
8,259
|
|
|
1,705
|
|
|
2,355
|
|
|||||
Residential mortgages
|
|
2,883
|
|
|
3,795
|
|
|
3,966
|
|
|
3,908
|
|
|
7,868
|
|
|||||
Consumer
|
|
5,438
|
|
|
5,039
|
|
|
3,768
|
|
|
3,214
|
|
|
3,493
|
|
|||||
Total non-performing loans
|
|
22,899
|
|
|
22,240
|
|
|
20,875
|
|
|
21,705
|
|
|
27,455
|
|
|||||
Real estate owned
|
|
—
|
|
|
151
|
|
|
1,725
|
|
|
2,049
|
|
|
2,758
|
|
|||||
Repossessed assets
|
|
1,147
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total non-performing assets
|
|
$
|
24,046
|
|
|
$
|
22,391
|
|
|
$
|
22,600
|
|
|
$
|
23,754
|
|
|
$
|
30,213
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Troubled debt restructurings (accruing)
|
|
$
|
36,172
|
|
|
$
|
28,241
|
|
|
$
|
12,497
|
|
|
$
|
12,612
|
|
|
$
|
8,344
|
|
Accruing loans 90+ days past due
|
|
$
|
16,480
|
|
|
$
|
9,863
|
|
|
$
|
5,229
|
|
|
$
|
4,568
|
|
|
$
|
9,223
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total non-performing loans/total loans
|
|
0.28
|
%
|
|
0.34
|
%
|
|
0.36
|
%
|
|
0.46
|
%
|
|
0.66
|
%
|
|||||
Total non-performing assets/total assets
|
|
0.21
|
%
|
|
0.24
|
%
|
|
0.29
|
%
|
|
0.37
|
%
|
|
0.53
|
%
|
(In thousands)
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Balance at beginning of year
|
|
$
|
43,998
|
|
|
$
|
39,308
|
|
|
$
|
35,662
|
|
|
$
|
33,323
|
|
|
$
|
33,208
|
|
Charged-off loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial real estate
|
|
4,646
|
|
|
3,104
|
|
|
7,546
|
|
|
5,684
|
|
|
5,026
|
|
|||||
Commercial and industrial loans
|
|
4,217
|
|
|
5,715
|
|
|
3,110
|
|
|
3,010
|
|
|
2,917
|
|
|||||
Residential mortgages
|
|
1,603
|
|
|
2,865
|
|
|
1,857
|
|
|
2,596
|
|
|
2,426
|
|
|||||
Consumer
|
|
4,118
|
|
|
2,342
|
|
|
2,175
|
|
|
2,563
|
|
|
2,467
|
|
|||||
Total charged-off loans
|
|
14,584
|
|
|
14,026
|
|
|
14,688
|
|
|
13,853
|
|
|
12,836
|
|
|||||
Recoveries on charged-off loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial real estate
|
|
235
|
|
|
303
|
|
|
582
|
|
|
270
|
|
|
549
|
|
|||||
Commercial and industrial loans
|
|
424
|
|
|
389
|
|
|
458
|
|
|
228
|
|
|
211
|
|
|||||
Residential mortgages
|
|
313
|
|
|
304
|
|
|
205
|
|
|
365
|
|
|
399
|
|
|||||
Consumer
|
|
423
|
|
|
358
|
|
|
363
|
|
|
361
|
|
|
414
|
|
|||||
Total recoveries
|
|
1,395
|
|
|
1,354
|
|
|
1,608
|
|
|
1,224
|
|
|
1,573
|
|
|||||
Net loans charged-off
|
|
13,189
|
|
|
12,672
|
|
|
13,080
|
|
|
12,629
|
|
|
11,263
|
|
|||||
Provision for loan losses
|
|
21,025
|
|
|
17,362
|
|
|
16,726
|
|
|
14,968
|
|
|
11,378
|
|
|||||
Balance at end of year
|
|
$
|
51,834
|
|
|
$
|
43,998
|
|
|
$
|
39,308
|
|
|
$
|
35,662
|
|
|
$
|
33,323
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net charge-offs/average loans
|
|
0.19
|
%
|
|
0.21
|
%
|
|
0.25
|
%
|
|
0.29
|
%
|
|
0.29
|
%
|
|||||
Recoveries/charged-off loans
|
|
9.57
|
|
|
9.65
|
|
|
10.95
|
|
|
8.84
|
|
|
12.25
|
|
|||||
Net loans charged-off/allowance for loan losses
|
|
25.44
|
|
|
28.80
|
|
|
33.28
|
|
|
35.41
|
|
|
33.80
|
|
|||||
Allowance for loan losses/total loans
|
|
0.62
|
|
|
0.67
|
|
|
0.69
|
|
|
0.76
|
|
|
0.80
|
|
|||||
Allowance for loan losses/non-accruing loans
|
|
226.36
|
|
|
197.83
|
|
|
188.30
|
|
|
164.30
|
|
|
121.37
|
|
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
|
Amount
Allocated |
|
Percent Allocated to Total Loans in Each Category
|
|
Amount
Allocated |
|
Percent Allocated to Total Loans in Each Category
|
|
Amount
Allocated |
|
Percent Allocated to Total Loans in Each Category
|
|
Amount
Allocated |
|
Percent Allocated to Total Loans in Each Category
|
|
Amount
Allocated |
|
Percent Allocated to Total Loans in Each Category
|
|||||||||||||||
Commercial real estate
|
|
$
|
20,699
|
|
|
0.63
|
%
|
|
$
|
18,801
|
|
|
0.72
|
%
|
|
$
|
16,494
|
|
|
0.80
|
%
|
|
$
|
15,539
|
|
|
0.96
|
%
|
|
$
|
16,112
|
|
|
1.13
|
%
|
Commercial and industrial loans
|
|
14,975
|
|
|
0.83
|
%
|
|
10,611
|
|
|
1.00
|
%
|
|
8,715
|
|
|
0.83
|
%
|
|
6,322
|
|
|
0.79
|
%
|
|
5,770
|
|
|
0.85
|
%
|
|||||
Residential mortgages
|
|
10,018
|
|
|
0.48
|
%
|
|
8,571
|
|
|
0.45
|
%
|
|
8,589
|
|
|
0.47
|
%
|
|
7,480
|
|
|
0.50
|
%
|
|
7,562
|
|
|
0.55
|
%
|
|||||
Consumer
|
|
6,142
|
|
|
0.54
|
%
|
|
6,015
|
|
|
0.61
|
%
|
|
5,510
|
|
|
0.69
|
%
|
|
6,321
|
|
|
0.82
|
%
|
|
3,879
|
|
|
0.56
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total
|
|
$
|
51,834
|
|
|
0.62
|
%
|
|
$
|
43,998
|
|
|
0.67
|
%
|
|
$
|
39,308
|
|
|
0.69
|
%
|
|
$
|
35,662
|
|
|
0.76
|
%
|
|
$
|
33,323
|
|
|
0.80
|
%
|
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
|
Amount
Allocated |
|
Percent of
Loans in Each Category to Total Loans |
|
Amount
Allocated |
|
Percent of
Loans in Each Category to Total Loans |
|
Amount
Allocated |
|
Percent of
Loans in Each Category to Total Loans |
|
Amount
Allocated |
|
Percent of
Loans in Each Category to Total Loans |
|
Amount
Allocated |
|
Percent of
Loans in Each Category to Total Loans |
|||||||||||||||
Commercial real estate
|
|
$
|
20,699
|
|
|
39.33
|
%
|
|
$
|
18,801
|
|
|
39.95
|
%
|
|
$
|
16,494
|
|
|
41.96
|
%
|
|
$
|
15,539
|
|
|
34.43
|
%
|
|
$
|
16,112
|
|
|
41.26
|
%
|
Commercial and industrial loans
|
|
14,975
|
|
|
21.74
|
%
|
|
10,611
|
|
|
16.22
|
%
|
|
8,715
|
|
|
22.10
|
%
|
|
6,322
|
|
|
17.19
|
%
|
|
5,770
|
|
|
9.08
|
%
|
|||||
Residential mortgages
|
|
10,018
|
|
|
25.34
|
%
|
|
8,571
|
|
|
28.90
|
%
|
|
8,589
|
|
|
21.91
|
%
|
|
7,480
|
|
|
31.97
|
%
|
|
7,562
|
|
|
33.11
|
%
|
|||||
Consumer
|
|
6,142
|
|
|
13.59
|
%
|
|
6,015
|
|
|
14.93
|
%
|
|
5,510
|
|
|
14.03
|
%
|
|
6,321
|
|
|
16.41
|
%
|
|
3,879
|
|
|
16.55
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total
|
|
$
|
51,834
|
|
|
100.00
|
%
|
|
$
|
43,998
|
|
|
100.00
|
%
|
|
$
|
39,308
|
|
|
100.00
|
%
|
|
$
|
35,662
|
|
|
100.00
|
%
|
|
$
|
33,323
|
|
|
100.00
|
%
|
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||||||||
(In thousands)
|
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||
Securities available for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Municipal bonds and obligations
|
|
$
|
113,427
|
|
|
$
|
118,233
|
|
|
$
|
117,910
|
|
|
$
|
119,816
|
|
|
$
|
99,922
|
|
|
$
|
104,561
|
|
Mortgage-backed securities
|
|
1,142,656
|
|
|
1,130,403
|
|
|
948,661
|
|
|
945,129
|
|
|
960,907
|
|
|
959,865
|
|
||||||
Other bonds and obligations
|
|
131,167
|
|
|
132,278
|
|
|
78,877
|
|
|
79,051
|
|
|
57,742
|
|
|
56,064
|
|
||||||
Marketable equity securities
|
|
36,483
|
|
|
45,185
|
|
|
47,858
|
|
|
65,541
|
|
|
30,522
|
|
|
33,967
|
|
||||||
Total securities available for sale
|
|
$
|
1,423,733
|
|
|
$
|
1,426,099
|
|
|
$
|
1,193,306
|
|
|
$
|
1,209,537
|
|
|
$
|
1,149,093
|
|
|
$
|
1,154,457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities held to maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Municipal bonds and obligations
|
|
$
|
270,310
|
|
|
$
|
278,895
|
|
|
$
|
203,463
|
|
|
$
|
204,986
|
|
|
$
|
94,642
|
|
|
$
|
97,967
|
|
Mortgage-backed securities
|
|
92,115
|
|
|
92,242
|
|
|
95,302
|
|
|
95,495
|
|
|
68
|
|
|
71
|
|
||||||
Tax advantaged economic development bonds
|
|
34,357
|
|
|
33,818
|
|
|
35,278
|
|
|
36,874
|
|
|
36,613
|
|
|
38,537
|
|
||||||
Other bonds and obligations
|
|
321
|
|
|
321
|
|
|
325
|
|
|
325
|
|
|
329
|
|
|
329
|
|
||||||
Total securities held to maturity
|
|
$
|
397,103
|
|
|
$
|
405,276
|
|
|
$
|
334,368
|
|
|
$
|
337,680
|
|
|
$
|
131,652
|
|
|
$
|
136,904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trading account security
|
|
$
|
10,755
|
|
|
$
|
12,277
|
|
|
$
|
11,387
|
|
|
$
|
13,229
|
|
|
$
|
11,984
|
|
|
$
|
14,189
|
|
Restricted equity securities
|
|
$
|
63,085
|
|
|
$
|
63,085
|
|
|
$
|
71,112
|
|
|
$
|
71,112
|
|
|
$
|
71,018
|
|
|
$
|
71,018
|
|
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||||||||
(In thousands)
|
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||||||
U.S. Treasuries, other Government agencies and corporations
|
|
$
|
1,271,254
|
|
|
$
|
1,267,830
|
|
|
$
|
1,091,821
|
|
|
$
|
1,106,165
|
|
|
$
|
991,497
|
|
|
$
|
993,903
|
|
Municipal bonds and obligations
|
|
428,849
|
|
|
443,223
|
|
|
368,038
|
|
|
374,905
|
|
|
243,161
|
|
|
255,254
|
|
||||||
Other bonds and obligations
|
|
194,573
|
|
|
195,684
|
|
|
150,314
|
|
|
150,488
|
|
|
129,089
|
|
|
127,411
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Securities
|
|
$
|
1,894,676
|
|
|
$
|
1,906,737
|
|
|
$
|
1,610,173
|
|
|
$
|
1,631,558
|
|
|
$
|
1,363,747
|
|
|
$
|
1,376,568
|
|
|
One Year or Less
|
|
More than One
Year to Five Years |
|
More than Five Years
to Ten Years |
|
More than Ten Years
|
|
Total
|
|||||||||||||||||||||||||
(In millions)
|
Amortized
Cost |
|
Weighted
Average Yield |
|
Amortized
Cost |
|
Weighted
Average Yield |
|
Amortized
Cost |
|
Weighted
Average Yield |
|
Amortized
Cost |
|
Weighted
Average Yield |
|
Amortized
Cost |
|
Weighted
Average Yield |
|||||||||||||||
Municipal bonds and obligations
|
$
|
1.6
|
|
|
3.6
|
%
|
|
$
|
28.7
|
|
|
3.8
|
%
|
|
$
|
26.4
|
|
|
4.8
|
%
|
|
$
|
327.0
|
|
|
5.0
|
%
|
|
$
|
383.7
|
|
|
4.9
|
%
|
Mortgage-backed securities
|
0.1
|
|
|
3.0
|
%
|
|
4.1
|
|
|
2.4
|
%
|
|
45.8
|
|
|
2.3
|
%
|
|
1,184.6
|
|
|
2.5
|
%
|
|
1,234.6
|
|
|
2.5
|
%
|
|||||
Other bonds and obligations
|
0.3
|
|
|
4.7
|
%
|
|
29.8
|
|
|
5.0
|
%
|
|
57.6
|
|
|
5.4
|
%
|
|
78.4
|
|
|
3.5
|
%
|
|
166.1
|
|
|
4.4
|
%
|
|||||
Total
|
$
|
2.0
|
|
|
3.7
|
%
|
|
$
|
62.6
|
|
|
4.3
|
%
|
|
$
|
129.8
|
|
|
4.2
|
%
|
|
$
|
1,590.0
|
|
|
3.1
|
%
|
|
$
|
1,784.4
|
|
|
3.2
|
%
|
|
|
2017
|
|
2016
|
|
2015
|
||||||||||||||||||||||||
(In millions)
|
|
Average
Balance |
|
Percent
of Total Average Deposits |
|
Weighted
Average Rate |
|
Average
Balance |
|
Percent
of Total Average Deposits |
|
Weighted
Average Rate |
|
Average
Balance |
|
Percent
of Total Average Deposits |
|
Weighted
Average Rate |
||||||||||||
Demand
|
|
$
|
1,296.4
|
|
|
18
|
%
|
|
—
|
%
|
|
$
|
1,081.0
|
|
|
19
|
%
|
|
—
|
%
|
|
$
|
972.6
|
|
|
19
|
%
|
|
—
|
%
|
NOW
|
|
591.0
|
|
|
8
|
|
|
0.3
|
|
|
487.8
|
|
|
8
|
|
|
0.1
|
|
|
462.9
|
|
|
9
|
|
|
0.2
|
|
|||
Money market
|
|
1,935.8
|
|
|
27
|
|
|
0.6
|
|
|
1,470.3
|
|
|
26
|
|
|
0.5
|
|
|
1,444.1
|
|
|
28
|
|
|
0.4
|
|
|||
Savings
|
|
680.1
|
|
|
10
|
|
|
0.1
|
|
|
610.8
|
|
|
11
|
|
|
0.1
|
|
|
582.4
|
|
|
11
|
|
|
0.2
|
|
|||
Time
|
|
2,581.1
|
|
|
37
|
|
|
1.2
|
|
|
2,094.8
|
|
|
36
|
|
|
1.1
|
|
|
1,684.8
|
|
|
33
|
|
|
0.9
|
|
|||
Total
|
|
$
|
7,084.4
|
|
|
100
|
%
|
|
0.6
|
%
|
|
$
|
5,744.7
|
|
|
100
|
%
|
|
0.5
|
%
|
|
$
|
5,146.8
|
|
|
100
|
%
|
|
0.5
|
%
|
Maturity Period
|
|
Amount
|
|
Weighted Average Rate
|
|||
(In thousands)
|
|
|
|
|
|
|
|
Three months or less
|
|
$
|
656,814
|
|
|
1.10
|
%
|
Over 3 months through 6 months
|
|
350,824
|
|
|
1.31
|
|
|
Over 6 months through 12 months
|
|
395,429
|
|
|
1.39
|
|
|
Over 12 months
|
|
753,353
|
|
|
1.72
|
|
|
Total
|
|
$
|
2,156,420
|
|
|
1.40
|
%
|
•
|
difficulty in estimating the value of the target company
|
•
|
payment of a premium over book and market values that may dilute the Company’s tangible book value and earnings per share in the short and long term;
|
•
|
exposure to unknown or contingent liabilities, or asset quality problems, of the target company;
|
•
|
unexpected regulatory responses to merger related applications
|
•
|
larger than anticipated merger-related expenses;
|
•
|
difficulty and expense of integrating the operations and personnel of the target company, and retaining key employees and customers;
|
•
|
inability to realize the expected revenue increases, cost savings, increases in geographic or product presence, and/or other projected benefits; and
|
•
|
potential diversion of Company management’s time and attention.
|
2017
|
|
High
|
|
Low
|
|
Dividends
Declared |
||||||
First quarter
|
|
$
|
37.45
|
|
|
$
|
32.90
|
|
|
$
|
0.21
|
|
Second quarter
|
|
38.65
|
|
|
33.55
|
|
|
0.21
|
|
|||
Third quarter
|
|
39.00
|
|
|
32.85
|
|
|
0.21
|
|
|||
Fourth quarter
|
|
40.00
|
|
|
35.10
|
|
|
0.21
|
|
2016
|
|
|
|
|
|
|
||||||
First quarter
|
|
$
|
28.93
|
|
|
$
|
24.71
|
|
|
$
|
0.20
|
|
Second quarter
|
|
28.18
|
|
|
24.80
|
|
|
0.20
|
|
|||
Third quarter
|
|
28.37
|
|
|
25.90
|
|
|
0.20
|
|
|||
Fourth quarter
|
|
37.35
|
|
|
27.25
|
|
|
0.20
|
|
Period
|
|
Total number of
shares purchased |
|
Average price
paid per share |
|
Total number of shares
purchased as part of publicly announced plans or programs |
|
Maximum number of
shares that may yet be purchased under the plans or programs |
|||||
October 1-31, 2017
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
500,000
|
|
November 1-30, 2017
|
|
—
|
|
|
—
|
|
|
—
|
|
|
500,000
|
|
|
December 1-31, 2017
|
|
—
|
|
|
—
|
|
|
—
|
|
|
500,000
|
|
|
Total
|
|
—
|
|
|
—
|
|
|
—
|
|
|
500,000
|
|
|
|
Period Ending
|
||||||||||||||||
Index
|
|
12/31/12
|
|
12/31/13
|
|
12/31/14
|
|
12/31/15
|
|
12/31/16
|
|
12/31/17
|
||||||
Berkshire Hills Bancorp, Inc.
|
|
100.00
|
|
|
117.53
|
|
|
118.35
|
|
|
132.76
|
|
|
173.10
|
|
|
175.94
|
|
NYSE Composite Index
|
|
100.00
|
|
|
126.06
|
|
|
134.62
|
|
|
129.40
|
|
|
144.72
|
|
|
171.66
|
|
PHLX KBW Regional Banking Index
|
|
100.00
|
|
|
146.30
|
|
|
149.67
|
|
|
158.62
|
|
|
219.27
|
|
|
223.02
|
|
|
|
At or For the Years Ended December 31,
|
||||||||||||||||||
(In thousands, except per share data)
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Per Common Share Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net earnings, diluted
|
|
$
|
1.39
|
|
|
$
|
1.88
|
|
|
$
|
1.74
|
|
|
$
|
1.36
|
|
|
$
|
1.65
|
|
Total book value per common share
|
|
32.14
|
|
|
30.65
|
|
|
28.64
|
|
|
28.17
|
|
|
27.08
|
|
|||||
Dividends
|
|
0.84
|
|
|
0.80
|
|
|
0.76
|
|
|
0.72
|
|
|
0.72
|
|
|||||
Common stock price:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
High
|
|
40.00
|
|
|
37.35
|
|
|
30.40
|
|
|
27.28
|
|
|
29.38
|
|
|||||
Low
|
|
32.85
|
|
|
24.71
|
|
|
24.32
|
|
|
22.06
|
|
|
23.38
|
|
|||||
Close
|
|
36.60
|
|
|
36.85
|
|
|
29.11
|
|
|
26.66
|
|
|
27.27
|
|
|||||
Performance Ratios: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Return on assets
|
|
0.56
|
%
|
|
0.74
|
%
|
|
0.68
|
%
|
|
0.55
|
%
|
|
0.78
|
%
|
|||||
Return on equity
|
|
4.45
|
|
|
6.44
|
|
|
6.14
|
|
|
4.87
|
|
|
6.09
|
|
|||||
Net interest margin, fully taxable equivalent (FTE) (2)
|
|
3.40
|
|
|
3.31
|
|
|
3.34
|
|
|
3.30
|
|
|
3.67
|
|
|||||
Fee income/Net interest and fee income
|
|
29.41
|
|
|
22.80
|
|
|
21.18
|
|
|
23.02
|
|
|
23.04
|
|
|||||
Growth Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total commercial loans
|
|
37.79%
|
|
|
18.39
|
%
|
|
28.65
|
%
|
|
14.80
|
%
|
|
4.51
|
%
|
|||||
Total loans
|
|
26.71
|
|
|
14.41
|
|
|
22.32
|
|
|
11.96
|
|
|
4.81
|
|
|||||
Total deposits
|
|
32.13
|
|
|
18.48
|
|
|
20.08
|
|
|
20.95
|
|
|
(6.14
|
)
|
|||||
Total net revenues, (compared to prior year)
|
|
41.05
|
|
|
11.18
|
|
|
18.40
|
|
|
(0.23
|
)
|
|
14.96
|
|
|||||
Earnings per share, (compared to prior year)
|
|
(26.06
|
)
|
|
8.62
|
|
|
27.21
|
|
|
(17.58
|
)
|
|
10.74
|
|
|||||
Selected Financial Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total assets
|
|
$
|
11,570,751
|
|
|
$
|
9,162,542
|
|
|
$
|
7,831,086
|
|
|
$
|
6,501,079
|
|
|
$
|
5,671,724
|
|
Total earning assets
|
|
10,509,163
|
|
|
8,340,287
|
|
|
7,140,387
|
|
|
5,923,462
|
|
|
5,085,152
|
|
|||||
Securities
|
|
1,898,564
|
|
|
1,628,246
|
|
|
1,371,316
|
|
|
1,205,794
|
|
|
870,091
|
|
|||||
Total loans
|
|
8,299,338
|
|
|
6,549,787
|
|
|
5,725,236
|
|
|
4,680,600
|
|
|
4,180,523
|
|
|||||
Allowance for loan losses
|
|
(51,834
|
)
|
|
(43,998
|
)
|
|
(39,308
|
)
|
|
(35,662
|
)
|
|
(33,323
|
)
|
|||||
Total intangible assets
|
|
557,583
|
|
|
422,551
|
|
|
334,607
|
|
|
276,270
|
|
|
270,662
|
|
|||||
Total deposits
|
|
8,749,530
|
|
|
6,622,092
|
|
|
5,589,135
|
|
|
4,654,679
|
|
|
3,848,529
|
|
|||||
Total borrowings
|
|
1,137,075
|
|
|
1,313,997
|
|
|
1,263,318
|
|
|
1,051,371
|
|
|
1,063,032
|
|
|||||
Total shareholders’ equity
|
|
1,496,264
|
|
|
1,093,298
|
|
|
887,189
|
|
|
709,287
|
|
|
678,062
|
|
|
|
At or For the Years Ended December 31,
|
||||||||||||||||||
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||
Selected Operating Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total interest and dividend income
|
|
$
|
360,258
|
|
|
$
|
280,439
|
|
|
$
|
247,030
|
|
|
$
|
207,042
|
|
|
$
|
203,741
|
|
Total interest expense
|
|
65,463
|
|
|
48,172
|
|
|
33,181
|
|
|
28,351
|
|
|
34,989
|
|
|||||
Net interest income (3)
|
|
294,795
|
|
|
232,267
|
|
|
213,849
|
|
|
178,691
|
|
|
168,752
|
|
|||||
Fee income
|
|
122,801
|
|
|
68,606
|
|
|
57,480
|
|
|
53,434
|
|
|
50,525
|
|
|||||
All other non-interest income (loss)
|
|
2,888
|
|
|
(2,755
|
)
|
|
(3,192
|
)
|
|
(5,664
|
)
|
|
7,707
|
|
|||||
Total net revenue
|
|
420,484
|
|
|
298,118
|
|
|
268,137
|
|
|
226,461
|
|
|
226,984
|
|
|||||
Provision for loan losses
|
|
21,025
|
|
|
17,362
|
|
|
16,726
|
|
|
14,968
|
|
|
11,378
|
|
|||||
Total non-interest expense
|
|
299,710
|
|
|
203,302
|
|
|
196,829
|
|
|
165,986
|
|
|
157,359
|
|
|||||
Income tax expense - continuing operations
|
|
44,502
|
|
|
18,784
|
|
|
5,064
|
|
|
11,763
|
|
|
17,104
|
|
|||||
Net income
|
|
$
|
55,247
|
|
|
$
|
58,670
|
|
|
$
|
49,518
|
|
|
$
|
33,744
|
|
|
$
|
41,143
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends per preferred share
|
|
$
|
0.42
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Dividends per common share
|
|
0.84
|
|
|
0.80
|
|
|
0.76
|
|
|
0.72
|
|
|
0.72
|
|
|||||
Basic earnings per common share
|
|
1.40
|
|
|
1.89
|
|
|
1.74
|
|
|
1.36
|
|
|
1.66
|
|
|||||
Diluted earnings per common share
|
|
1.39
|
|
|
1.88
|
|
|
1.73
|
|
|
1.36
|
|
|
1.65
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average common shares outstanding - basic
|
|
39,456
|
|
|
30,988
|
|
|
28,393
|
|
|
24,730
|
|
|
24,802
|
|
|||||
Weighted average common shares outstanding - diluted
|
|
39,695
|
|
|
31,167
|
|
|
28,564
|
|
|
24,854
|
|
|
24,965
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset Quality and Condition Ratios: (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net loans charged-off/average loans
|
|
0.19
|
%
|
|
0.21
|
%
|
|
0.25
|
%
|
|
0.29
|
%
|
|
0.29
|
%
|
|||||
Allowance for loan losses/total loans
|
|
0.62
|
|
|
0.67
|
|
|
0.69
|
|
|
0.76
|
|
|
0.80
|
|
|||||
Loans/deposits
|
|
95
|
|
|
99
|
|
|
102
|
|
|
101
|
|
|
109
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital Ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Tier 1 capital to average assets - Company (5)
|
|
9.01
|
%
|
|
7.88
|
%
|
|
7.71
|
%
|
|
7.01
|
%
|
|
N/A
|
|
|||||
Total capital to risk-weighted assets - Company (5)
|
|
12.43
|
|
|
11.87
|
|
|
11.91
|
|
|
11.38
|
|
|
N/A
|
|
|||||
Tier 1 capital to risk-weighted assets - Company (5)
|
|
11.15
|
|
|
10.07
|
|
|
9.94
|
|
|
9.03
|
|
|
N/A
|
|
|||||
Shareholders’ equity/total assets
|
|
12.93
|
|
|
11.93
|
|
|
11.33
|
|
|
10.91
|
|
|
11.95
|
|
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||||
(Dollars in millions)
|
|
Average
Balance
|
|
Interest
|
|
Average
Yield/
Rate
|
|
Average
Balance
|
|
Interest
|
|
Average
Yield/
Rate
|
|
Average
Balance
|
|
Interest
|
|
Average
Yield/
Rate
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans: (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate
|
|
$
|
2,789.8
|
|
|
$
|
130.0
|
|
|
4.66
|
%
|
|
$
|
2,239.6
|
|
|
$
|
95.8
|
|
|
4.28
|
%
|
|
$
|
1,881.2
|
|
|
$
|
81.1
|
|
|
4.31
|
%
|
Commercial and industrial loans
|
|
1,259.9
|
|
|
65.7
|
|
|
5.21
|
|
|
1,019.7
|
|
|
51.2
|
|
|
5.02
|
|
|
932.4
|
|
|
41.8
|
|
|
4.48
|
|
||||||
Residential loans
|
|
1,962.4
|
|
|
71.5
|
|
|
3.64
|
|
|
1,808.8
|
|
|
66.1
|
|
|
3.66
|
|
|
1,622.8
|
|
|
62.6
|
|
|
3.86
|
|
||||||
Consumer loans
|
|
1,032.6
|
|
|
39.4
|
|
|
3.82
|
|
|
873.3
|
|
|
29.9
|
|
|
3.42
|
|
|
802.5
|
|
|
26.1
|
|
|
3.25
|
|
||||||
Total loans
|
|
7,044.7
|
|
|
306.6
|
|
|
4.35
|
|
|
5,941.4
|
|
|
243.0
|
|
|
4.09
|
|
|
5,238.9
|
|
|
211.6
|
|
|
4.04
|
|
||||||
Investment securities (2)
|
|
1,757.3
|
|
|
60.3
|
|
|
3.43
|
|
|
1,260.5
|
|
|
41.4
|
|
|
3.28
|
|
|
1,300.9
|
|
|
38.9
|
|
|
2.99
|
|
||||||
Short-term investments and loans held for sale
|
|
134.5
|
|
|
4.6
|
|
|
3.38
|
|
|
51.6
|
|
|
0.9
|
|
|
1.70
|
|
|
62.2
|
|
|
0.7
|
|
|
1.10
|
|
||||||
Total interest-earning assets
|
|
8,936.5
|
|
|
371.5
|
|
|
4.16
|
|
|
7,253.5
|
|
|
285.3
|
|
|
3.93
|
|
|
6,602.0
|
|
|
251.2
|
|
|
3.81
|
|
||||||
Intangible assets
|
|
449.7
|
|
|
0
|
|
|
|
|
|
347.7
|
|
|
|
|
|
|
|
|
311.5
|
|
|
|
|
|
|
|
||||||
Other non-interest earning assets
|
|
428.4
|
|
|
0
|
|
|
|
|
|
357.9
|
|
|
|
|
|
|
|
|
341.0
|
|
|
|
|
|
|
|
||||||
Total assets
|
|
$
|
9,814.6
|
|
|
|
|
|
|
|
|
$
|
7,959.1
|
|
|
|
|
|
|
|
|
$
|
7,254.5
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Liabilities and shareholders' equity
|
|||||||||||||||||||||||||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
NOW
|
|
$
|
591.0
|
|
|
$
|
1.5
|
|
|
0.25
|
%
|
|
$
|
487.8
|
|
|
$
|
0.7
|
|
|
0.14
|
%
|
|
$
|
462.9
|
|
|
$
|
0.7
|
|
|
0.15
|
%
|
Money market
|
|
1,935.8
|
|
|
11.2
|
|
|
0.58
|
|
|
1,470.3
|
|
|
7.0
|
|
|
0.48
|
|
|
1,444.1
|
|
|
5.9
|
|
|
0.41
|
|
||||||
Savings
|
|
680.1
|
|
|
0.9
|
|
|
0.14
|
|
|
610.8
|
|
|
0.7
|
|
|
0.12
|
|
|
582.4
|
|
|
0.9
|
|
|
0.15
|
|
||||||
Certificates of deposit
|
|
2,581.1
|
|
|
30.3
|
|
|
1.17
|
|
|
2,094.8
|
|
|
22.5
|
|
|
1.07
|
|
|
1,684.8
|
|
|
15.5
|
|
|
0.92
|
|
||||||
Total interest-bearing deposits
|
|
5,788.0
|
|
|
43.9
|
|
|
0.76
|
|
|
4,663.7
|
|
|
30.9
|
|
|
0.66
|
|
|
4,174.2
|
|
|
23.0
|
|
|
0.55
|
|
||||||
Borrowings and notes (3)
|
|
1,373.8
|
|
|
21.6
|
|
|
1.57
|
|
|
1,218.2
|
|
|
17.3
|
|
|
1.42
|
|
|
1,212.5
|
|
|
10.2
|
|
|
0.84
|
|
||||||
Total interest-bearing liabilities
|
|
7,161.8
|
|
|
65.5
|
|
|
0.91
|
|
|
5,881.9
|
|
|
48.2
|
|
|
0.82
|
|
|
5,386.7
|
|
|
33.2
|
|
|
0.62
|
|
||||||
Non-interest-bearing demand deposits
|
|
1,296.4
|
|
|
|
|
|
|
|
|
1,081.0
|
|
|
|
|
|
|
|
|
972.6
|
|
|
|
|
|
|
|
||||||
Other non-interest-bearing liabilities
|
|
112.6
|
|
|
|
|
|
|
|
|
85.2
|
|
|
|
|
|
|
|
|
89.1
|
|
|
|
|
|
|
|
||||||
Total liabilities
|
|
8,570.8
|
|
|
|
|
|
|
|
|
7,048.1
|
|
|
|
|
|
|
|
|
6,448.4
|
|
|
|
|
|
|
|
||||||
Total shareholders' equity
|
|
1,243.8
|
|
|
|
|
|
|
|
|
911.0
|
|
|
|
|
|
|
|
|
806.1
|
|
|
|
|
|
|
|
||||||
Total liabilities and equity
|
|
$
|
9,814.6
|
|
|
|
|
|
|
|
|
$
|
7,959.1
|
|
|
|
|
|
|
|
|
$
|
7,254.5
|
|
|
|
|
|
|
|
|||
Net interest-earning assets
|
|
$
|
1,774.7
|
|
|
|
|
|
|
|
|
$
|
1,371.6
|
|
|
|
|
|
|
|
|
$
|
1,215.3
|
|
|
|
|
|
|
|
|||
Net interest income
|
|
|
|
$
|
306.0
|
|
|
|
|
|
|
$
|
237.1
|
|
|
|
|
|
|
$
|
218.0
|
|
|
|
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||||
(Dollars in millions)
|
|
Average
Balance
|
|
Interest
|
|
Average
Yield/
Rate
|
|
Average
Balance
|
|
Interest
|
|
Average
Yield/
Rate
|
|
Average
Balance
|
|
Interest
|
|
Average
Yield/
Rate
|
|||||||||||||||
Net interest spread
|
|
|
|
|
|
|
|
3.25
|
%
|
|
|
|
|
|
|
|
3.11
|
%
|
|
|
|
|
|
|
|
3.19
|
%
|
||||||
Net interest margin (4)
|
|
|
|
|
|
|
|
3.40
|
|
|
|
|
|
|
|
|
3.31
|
|
|
|
|
|
|
|
|
3.34
|
|
||||||
Cost of funds
|
|
|
|
|
|
|
|
0.77
|
|
|
|
|
|
|
|
|
0.69
|
|
|
|
|
|
|
|
|
0.52
|
|
||||||
Cost of deposits
|
|
|
|
|
|
|
|
0.62
|
|
|
|
|
|
|
|
|
0.54
|
|
|
|
|
|
|
|
|
0.45
|
|
||||||
Interest-earning assets/interest-bearing liabilities
|
|
|
|
|
|
|
|
124.78
|
|
|
|
|
|
|
|
|
123.32
|
|
|
|
|
|
|
|
|
122.56
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Supplementary data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total non-maturity deposits
|
|
$
|
4,503.3
|
|
|
|
|
|
|
|
|
$
|
3,649.9
|
|
|
|
|
|
|
|
|
$
|
3,462.0
|
|
|
|
|
|
|
|
|||
Total deposits
|
|
7,084.4
|
|
|
|
|
|
|
|
|
5,744.7
|
|
|
|
|
|
|
|
|
5,146.8
|
|
|
|
|
|
|
|
||||||
Fully taxable equivalent adjustment
|
|
11.2
|
|
|
|
|
|
|
|
|
8.1
|
|
|
|
|
|
|
|
|
6.4
|
|
|
|
|
|
|
|
|
|
2017 Compared with 2016
|
|
2016 Compared with 2015
|
||||||||||||||||||||
|
|
(Decrease) Increase Due to
|
|
(Decrease) Increase Due to
|
||||||||||||||||||||
(In thousands)
|
|
Rate
|
|
Volume
|
|
Net
|
|
Rate
|
|
Volume
|
|
Net
|
||||||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial real estate
|
|
$
|
9,145
|
|
|
$
|
25,080
|
|
|
$
|
34,225
|
|
|
$
|
(591
|
)
|
|
$
|
15,335
|
|
|
$
|
14,744
|
|
Commercial and industrial loans
|
|
1,999
|
|
|
12,457
|
|
|
14,456
|
|
|
5,294
|
|
|
4,120
|
|
|
9,414
|
|
||||||
Residential loans
|
|
(259
|
)
|
|
5,595
|
|
|
5,336
|
|
|
(3,427
|
)
|
|
6,920
|
|
|
3,493
|
|
||||||
Consumer loans
|
|
3,698
|
|
|
5,839
|
|
|
9,537
|
|
|
1,416
|
|
|
2,379
|
|
|
3,795
|
|
||||||
Total loans
|
|
14,583
|
|
|
48,971
|
|
|
63,554
|
|
|
2,692
|
|
|
28,754
|
|
|
31,446
|
|
||||||
Investment securities
|
|
1,985
|
|
|
16,978
|
|
|
18,963
|
|
|
3,667
|
|
|
(1,238
|
)
|
|
2,429
|
|
||||||
Short-term investments and loans held for sale
|
|
1,405
|
|
|
2,271
|
|
|
3,676
|
|
|
324
|
|
|
(132
|
)
|
|
192
|
|
||||||
Total interest income
|
|
$
|
17,973
|
|
|
$
|
68,220
|
|
|
$
|
86,193
|
|
|
$
|
6,683
|
|
|
$
|
27,384
|
|
|
$
|
34,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
NOW accounts
|
|
$
|
627
|
|
|
$
|
165
|
|
|
$
|
792
|
|
|
$
|
(39
|
)
|
|
$
|
35
|
|
|
$
|
(4
|
)
|
Money market accounts
|
|
1,698
|
|
|
2,506
|
|
|
4,204
|
|
|
1,000
|
|
|
109
|
|
|
1,109
|
|
||||||
Savings accounts
|
|
122
|
|
|
88
|
|
|
210
|
|
|
(212
|
)
|
|
42
|
|
|
(170
|
)
|
||||||
Certificates of deposit
|
|
2,205
|
|
|
5,561
|
|
|
7,766
|
|
|
2,861
|
|
|
4,140
|
|
|
7,001
|
|
||||||
Total deposits
|
|
4,652
|
|
|
8,320
|
|
|
12,972
|
|
|
3,610
|
|
|
4,326
|
|
|
7,936
|
|
||||||
Borrowings
|
|
1,981
|
|
|
2,338
|
|
|
4,319
|
|
|
7,008
|
|
|
48
|
|
|
7,056
|
|
||||||
Total interest expense
|
|
$
|
6,633
|
|
|
$
|
10,658
|
|
|
$
|
17,291
|
|
|
$
|
10,618
|
|
|
$
|
4,374
|
|
|
$
|
14,992
|
|
Change in net interest income
|
|
$
|
11,340
|
|
|
$
|
57,562
|
|
|
$
|
68,902
|
|
|
$
|
(3,935
|
)
|
|
$
|
23,010
|
|
|
$
|
19,075
|
|
|
|
At or For the Years Ended
|
||||||||||
(Dollars in thousands)
|
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||
GAAP Net income
|
|
$
|
55,247
|
|
|
$
|
58,670
|
|
|
$
|
49,518
|
|
Non-GAAP measures
|
|
|
|
|
|
|
|
|
||||
Adj: Gain on sale of securities, net
|
|
(12,598
|
)
|
|
551
|
|
|
(2,110
|
)
|
|||
Adj: Net gains on sale of business operations
|
|
(296
|
)
|
|
(1,085
|
)
|
|
—
|
|
|||
Adj: Loss on termination of hedges
|
|
6,629
|
|
|
—
|
|
|
—
|
|
|||
Adj: Acquisition, restructuring, conversion, and other related expenses (1)
|
|
31,558
|
|
|
15,761
|
|
|
17,611
|
|
|||
Adj: Employee and Community Investment
|
|
3,400
|
|
|
—
|
|
|
—
|
|
|||
Adj: Deferred tax asset impairment
|
|
18,145
|
|
|
—
|
|
|
—
|
|
|||
Adj: Income taxes
|
|
(11,277
|
)
|
|
(5,455
|
)
|
|
(5,409
|
)
|
|||
Net non-operating charges
|
|
35,561
|
|
|
9,772
|
|
|
10,092
|
|
|||
Total adjusted net income (non-GAAP)
|
|
$
|
90,808
|
|
|
$
|
68,442
|
|
|
$
|
59,610
|
|
GAAP Total revenue
|
|
$
|
420,484
|
|
|
$
|
298,118
|
|
|
$
|
268,137
|
|
Adj: Gain on sale of securities, net
|
|
(12,598
|
)
|
|
551
|
|
|
(2,110
|
)
|
|||
Adj: Net gains on sale of business operations
|
|
(296
|
)
|
|
(1,085
|
)
|
|
—
|
|
|||
Adj: Loss on termination of hedges
|
|
6,629
|
|
|
—
|
|
|
—
|
|
|||
Total adjusted operating revenue (non-GAAP)
|
|
$
|
414,219
|
|
|
$
|
297,584
|
|
|
$
|
266,027
|
|
GAAP Total non-interest expense
|
|
$
|
299,710
|
|
|
$
|
203,302
|
|
|
$
|
196,830
|
|
Less: Total non-operating expense (see above)
|
|
(31,558
|
)
|
|
(15,761
|
)
|
|
(17,611
|
)
|
|||
Less: Employee and Community Reinvestment
|
|
(3,400
|
)
|
|
—
|
|
|
—
|
|
|||
Adjusted operating non-interest expense (non-GAAP)
|
|
$
|
264,752
|
|
|
$
|
187,541
|
|
|
$
|
179,219
|
|
(in millions, except per share data)
|
|
|
|
|
|
|
||||||
Total average assets
|
|
$
|
9,815
|
|
|
$
|
7,958
|
|
|
$
|
7,249
|
|
Total average shareholders' equity
|
|
1,244
|
|
|
911
|
|
|
805
|
|
|||
Total average tangible shareholders equity
|
|
793
|
|
|
563
|
|
|
494
|
|
|||
Total average tangible common shareholders equity
|
|
784
|
|
|
563
|
|
|
494
|
|
|||
Total tangible shareholders’ equity, period-end
|
|
939
|
|
|
671
|
|
|
553
|
|
|||
Total tangible common shareholders’ equity, period-end
|
|
898
|
|
|
671
|
|
|
553
|
|
|||
Total tangible assets, period-end
|
|
11,013
|
|
|
8,740
|
|
|
7,496
|
|
|||
Total common shares outstanding, period-end (thousands)
|
|
45,290
|
|
|
35,673
|
|
|
30,974
|
|
|||
Average diluted shares outstanding
(thousands)
|
|
39,695
|
|
|
31,167
|
|
|
28,564
|
|
|||
Earnings per share, diluted
|
|
$
|
1.39
|
|
|
$
|
1.88
|
|
|
$
|
1.73
|
|
Plus: Net adjustments per share, diluted
|
|
0.90
|
|
|
0.32
|
|
|
0.36
|
|
|||
Adjusted earnings per share, diluted
|
|
2.29
|
|
|
2.20
|
|
|
2.09
|
|
|||
Book value per common share, period-end
|
|
32.14
|
|
|
30.65
|
|
|
28.64
|
|
|||
Tangible book value per common share, period-end
|
|
19.83
|
|
|
18.81
|
|
|
17.84
|
|
|||
Total shareholders' equity/total assets
|
|
12.93
|
|
|
11.93
|
|
|
11.33
|
|
|||
Total tangible shareholders' equity/total tangible assets
|
|
8.52
|
|
|
7.68
|
|
|
7.37
|
|
|||
Average operating diluted shares outstanding
(thousands)
|
|
39,695
|
|
|
31,167
|
|
|
28,564
|
|
|||
Performance Ratios
|
|
|
|
|
|
|
||||||
GAAP return on assets
|
|
0.56
|
|
|
0.74
|
|
|
0.68
|
|
|||
Adjusted return on assets
|
|
0.93
|
|
|
0.86
|
|
|
0.82
|
|
|||
GAAP return on equity
|
|
4.45
|
|
|
6.44
|
|
|
6.15
|
|
|||
Adjusted return on equity
|
|
7.31
|
|
|
7.51
|
|
|
7.40
|
|
|||
Adjusted return on tangible common equity
|
|
11.82
|
|
|
12.47
|
|
|
12.49
|
|
|||
Efficiency ratio
|
|
59.97
|
|
|
58.27
|
|
|
60.88
|
|
|||
Supplementary Data
(in thousands)
|
|
|
|
|
|
|
||||||
Tax benefit on tax-credit investments
|
|
10,182
|
|
|
11,134
|
|
|
16,127
|
|
|||
Non-interest income charge on tax-credit investments
|
|
(8,693
|
)
|
|
(8,993
|
)
|
|
(11,406
|
)
|
|||
Net income on tax-credit investments
|
|
1,489
|
|
|
2,143
|
|
|
4,721
|
|
|||
Intangible amortization
|
|
3,493
|
|
|
2,927
|
|
|
3,563
|
|
|||
Fully taxable equivalent income adjustment
|
|
11,227
|
|
|
8,098
|
|
|
6,354
|
|
(1)
|
Acquisition, restructuring, conversion, and other related expenses included $24.9 million of merger and acquisition expenses and $6.7 million of restructuring expenses for the year-ended December 31, 2017. For the year-ended 2016, these expenses included $13.5 million in merger and acquisition expenses and $2.3 million of restructuring expenses. For the year-ended 2015, these expenses included $13.2 million in merger and acquisition expenses and $4.5 million of restructuring, conversion, and other expenses.
|
•
|
Growing revenue by more than 40%
|
•
|
Gaining a major position in Worcester - an important regional market
|
•
|
Moving the corporate headquarters to Boston and expanding the Boston market team
|
•
|
Crossing the $10 billion threshold for total assets
|
•
|
Completing the largest acquisition and largest public stock offering since its initial public offering
|
(In thousands)
|
|
Total
|
|
Less than One
Year
|
|
One to Three
Years
|
|
Three to Five
Years
|
|
After Five
Years
|
||||||||||
FHLBB borrowings (1)
|
|
$
|
1,047,736
|
|
|
$
|
836,115
|
|
|
$
|
204,183
|
|
|
$
|
7,438
|
|
|
$
|
—
|
|
Subordinated notes
|
|
89,339
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
89,339
|
|
|||||
Operating lease obligations (2)
|
|
96,356
|
|
|
12,830
|
|
|
20,080
|
|
|
15,859
|
|
|
47,587
|
|
|||||
Purchase obligations (3)
|
|
102,002
|
|
|
16,321
|
|
|
31,086
|
|
|
27,507
|
|
|
27,088
|
|
|||||
Total Contractual Obligations
|
|
$
|
1,335,433
|
|
|
$
|
865,266
|
|
|
$
|
255,349
|
|
|
$
|
50,804
|
|
|
$
|
164,014
|
|
Change in
Interest Rates-Basis
Points (Rate Ramp)
|
|
|
|
|
|
|
|
|
||||||
|
1- 12 Months
|
|
13- 24 Months
|
|||||||||||
|
$ Change
|
|
% Change
|
|
$ Change
|
|
% Change
|
|||||||
(In thousands)
|
|
|
|
|
|
|
|
|
||||||
At December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||
+300
|
|
$
|
9,806
|
|
|
2.95
|
%
|
|
$
|
11,193
|
|
|
3.40
|
%
|
+200
|
|
7,940
|
|
|
2.39
|
|
|
9,374
|
|
|
2.85
|
|
||
+100
|
|
4,683
|
|
|
1.41
|
|
|
5,890
|
|
|
1.79
|
|
||
-100
|
|
(6,424
|
)
|
|
(1.93
|
)
|
|
(12,532
|
)
|
|
(3.81
|
)
|
||
|
|
|
|
|
|
|
|
|
||||||
At December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||
+300
|
|
$
|
9,904
|
|
|
3.96
|
%
|
|
$
|
7,659
|
|
|
3.07
|
%
|
+200
|
|
7,497
|
|
|
3.00
|
|
|
6,527
|
|
|
2.62
|
|
||
+100
|
|
4,632
|
|
|
1.85
|
|
|
4,448
|
|
|
1.78
|
|
||
-100
|
|
(5,853
|
)
|
|
(2.34
|
)
|
|
(10,100
|
)
|
|
(4.05
|
)
|
Name
|
Age
|
Position
|
Michael P. Daly
|
56
|
President and Chief Executive Officer of the Company; Chief Executive Officer - Berkshire Bank
|
Richard M. Marotta
|
59
|
Senior Executive Vice President of the Company; President - Berkshire Bank
|
Sean A. Gray
|
42
|
Senior Executive Vice President of the Company; Chief Operating Officer - Berkshire Bank
|
James M. Moses
|
41
|
Senior Executive Vice President, Chief Financial Officer of the Company; Chief Financial Officer - Berkshire Bank
|
George F. Bacigalupo
|
63
|
Senior Executive Vice President, Commercial Banking - Berkshire Bank
|
Michael D. Carroll
|
56
|
Executive Vice President, Commercial Banking and Specialty Lending - Berkshire Bank
|
Tami F. Gunsch
|
55
|
Executive Vice President & Director of Relationship Banking - Berkshire Bank
|
Gregory D. Lindenmuth
|
50
|
Executive Vice President, Chief Risk Officer - Berkshire Bank
|
Allison P. O'Rourke
|
42
|
Executive Vice President, Finance & Investor Relations - Berkshire Bank
|
Michael P. Daly. Age 56.
Mr. Daly has served as President and Chief Executive Officer of the Company and Chief Executive Officer of the Bank since October 2002. Before these appointments, he served as Executive Vice President and Senior Loan Officer of the Bank. He has been an employee since 1986. He has served as a Director of the Company and the Bank since 2002.
|
|
Richard M. Marotta. Age 59.
Mr. Marotta was promoted to Senior Executive Vice President of the Company and President of the Bank in September 2015, having previously served as Executive Vice President, Chief Risk Officer since January 2010, as well as Chief Administrative Officer since July 2013. He is responsible for overall risk management, compliance, human resources, information technology, legal, and strategic services, and oversees audit, which reports to the Board. Mr. Marotta was previously Executive Vice President and Group Head, Asset Recovery at KeyBank.
|
|
Sean A. Gray. Age 42. Mr. Gray was promoted to Senior Executive Vice President of the Company and Chief Operating Officer of the Bank in September 2015, having previously served as Executive Vice President, Retail Banking since 2010 and as a Senior Vice President since April 2008. Mr. Gray is responsible for the operating teams of the bank, including retail banking, commercial banking, specialty lending, mortgage banking, wealth management, insurance, and marketing. Mr. Gray joined the Company in January 2007 as First Vice President, Retail Banking. Prior to joining the Bank, Mr. Gray was Vice President and Consumer Market Manager at Bank of America, in Waltham, Massachusetts.
|
|
James M. Moses. Age 41.
Mr. Moses is Senior Executive Vice President, Chief Financial Officer of the Company and the Bank, since joining the Bank in July 2016. He is responsible for the accounting, treasury, tax, and capital markets functions. Mr. Moses previously served at Webster Bank as Senior Vice President and Asset/Liability Manager. Mr. Moses joined Webster Bank in 2011 from M&T Bank where he spent four years in various roles including head mortgage trader, deposit products pricing manager and consumer credit card product manager.
|
|
George F. Bacigalupo. Age 63.
Mr. Bacigalupo was promoted to Senior Executive Vice President, Commercial Banking in September 2015, having previously served as an Executive Vice President since October 2013 and Senior Vice President, Chief Credit Officer since 2011. Mr. Bacigalupo is responsible for commercial banking, including the middle-market, business banking and asset based lending teams in Eastern and Central Massachusetts and Connecticut. Previously, Mr. Bacigalupo was EVP of Specialty Lending at TD Banknorth, where he established the ABL and other middle-market lending groups. Subsequently, at TD Bank, he was the Senior Lender for New England.
|
|
Michael D. Carroll. Age 56.
Mr. Carroll is Executive Vice President, Commercial Banking and Specialty Lending of Berkshire Bank, a position he was promoted to in October 2017. Mr. Carroll has previously held the positions of EVP, Chief Risk Officer and SVP, Chief Credit Officer managing the risk and credit departments of the Bank. In his role as EVP, Commercial Banking and Specialty Lending he is responsible for Firestone Financial (equipment leasing) and 44 Business Capital (SBA Lending) and is the executive leader of the regional commercial teams in Berkshire County, Vermont, Albany, Syracuse, and the Mid-Atlantic region. He joined the company in 2009 as SVP, New York Regional Commercial Leader. Previously, Mr. Carroll was Senior Vice President, Middle Market banking at KeyBank.
|
|
Tami F. Gunsch. Age 55.
Ms. Gunsch is Executive Vice President & Director of Relationship Banking, a position she was promoted to in January 2018. In this role, Ms. Gunsch will develop and lead the relationship banking strategy across all lines of business. She is further responsible for all aspects of the retail banking consumer experience, including branch operations, consumer lending, call center, and electronic/mobile banking. Ms. Gunsch has previously held the positions of EVP, Retail Banking and Senior Vice President since October 2011. Ms. Gunsch joined Berkshire from Citizens Bank in 2009 as First VP of Retail Banking.
|
|
Gregory D. Lindenmuth. Age 50.
Mr. Lindenmuth is the Executive Vice President, Chief Risk Officer of Berkshire Bank. Mr. Lindenmuth is responsible for Credit, credit/risk administration, and loan workout. Mr. Lindenmuth previously served as Senior Risk Examiner for the Division of Risk Management Supervision with the FDIC, where he was employed for 24 years. With the FDIC, Mr. Lindenmuth was also a Capital Markets, Mortgage Banking and Fraud Specialist and a member of the National Examination Procedures Committee.
|
|
Allison P. O’Rourke. Age 42.
Ms. O’Rourke is Executive Vice President, Finance & Investor Relations, a position she assumed in January 2017, having previously served as Executive Vice President, Investor Relations Officer and Financial Institutions Banking. She joined the Company in 2013 and is responsible for investor relations, financial institutions banking, and financial planning and analysis. Ms. O’Rourke joined the Bank as Vice President in 2013 from the NYSE Euronext and previously worked in securities brokerage with Goldman Sachs and Speer Leeds and Kellogg.
|
|
Plan category
|
|
Number of securities
to be issued upon
exercise of
outstanding options, warrants and rights
|
|
Weighted-average
exercise price of
outstanding options, warrants and rights
|
|
Number of securities
remaining available for
future issuance under
equity compensation plans
(excluding securities reflected in the first column)
|
||||
Equity compensation plans approved by security holders
|
|
75,589
|
|
|
$
|
13.59
|
|
|
389,536
|
|
Equity compensation plans not approved by security holders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
|
75,589
|
|
|
$
|
13.59
|
|
|
389,536
|
|
(a)
|
[1]
Consolidated Financial Statements
|
•
|
•
|
•
|
•
|
•
|
•
|
•
|
[2]
|
Financial Statement Schedules
|
[3]
|
Exhibits
|
3.1
|
|
|
|
3.2
|
|
|
|
3.3
|
|
|
|
3.4
|
|
|
|
4.1
|
|
|
|
4.2
|
|
|
|
10.1
|
|
|
|
10.2
|
|
|
|
10.3
|
|
|
|
10.4
|
|
|
|
10.5
|
|
|
|
10.6
|
|
|
|
10.7
|
|
|
|
10.8
|
|
|
|
10.9
|
|
|
|
10.10
|
|
|
|
10.11
|
|
|
|
10.12
|
|
|
|
10.13
|
|
|
|
11.0
|
|
|
|
21.0
|
|
|
|
23.1
|
|
|
|
23.2
|
|
|
|
31.1
|
|
|
|
31.2
|
|
|
|
32.1
|
|
|
|
32.2
|
|
|
|
101
|
|
|
|
|
|
(1)
|
|
Incorporated herein by reference from the Exhibits to Form S-1, Registration Statement and amendments thereto, initially filed on March 10, 2000, Registration No. 333-32146.
|
(2)
|
|
Incorporated herein by reference from the Exhibits to the Form 8-K as filed on June 26, 2017.
|
(3)
|
|
Incorporated herein by reference from the Exhibits to the Form 10-Q as filed on November 9, 2017.
|
(4)
|
|
Incorporated herein by reference from the Exhibits to the Form 8-K as filed on October 16, 2017.
|
(5)
|
|
Incorporated by reference from the Exhibits to the Form 8-K as filed on September 26, 2012.
|
(6)
|
|
Incorporated herein by reference from the Exhibits to the Form 8-K as filed on January 6, 2009.
|
(7)
|
|
Incorporated herein by reference from the Exhibits to Form 10-K as filed on March 16, 2009.
|
(8)
|
|
Incorporated herein by reference from the Exhibit to the Form 10-K as filed on March 17, 2014.
|
(9)
|
|
Incorporated herein by reference from the Exhibits to the Form 8-K as filed on September 23, 2016.
|
(10)
|
|
Incorporated herein by reference from the Exhibits to the Form 10-K as filed on March 16, 2010.
|
(11)
|
|
Incorporated herein by reference from the Exhibits to the Form 8-K as filed on June 29, 2016.
|
(12)
|
|
Incorporated herein by reference from the Exhibits to the Form 10-K as filed on March 16, 2011.
|
(13)
|
|
Incorporated herein by reference from the Exhibit to the Form 8-K as filed on January 19, 2011.
|
(14)
|
|
Incorporated by reference from Exhibit 10.16 to the Form 10-Q as filed on August 9, 2012.
|
(15)
|
|
Incorporated herein by reference from the Appendix to the Proxy Statement as filed on March 24, 2011.
|
(16)
|
|
Incorporated herein by reference from the Appendix to the Proxy Statement as filed on April 2, 2013.
|
(17)
|
|
Incorporated herein by reference from the Exhibits to the Form 8-K as filed on January 23, 2015.
|
|
Berkshire Hills Bancorp, Inc.
|
|
Date: March 1, 2018
|
By:
|
/s/ Michael P. Daly
|
|
|
Michael P. Daly
|
|
|
President & Chief Executive Officer
|
/s/ Michael P. Daly
|
|
President & Chief Executive Officer
|
|
March 1, 2018
|
Michael P. Daly
|
|
(principal executive officer)
|
|
|
|
|
|
|
|
/s/ James M. Moses
|
|
Senior Executive Vice President, Chief Financial Officer
|
|
March 1, 2018
|
James M. Moses
|
|
(principal financial and accounting officer)
|
|
|
|
|
|
|
|
/s/ William J. Ryan
|
|
Non-Executive Chairman
|
|
March 1, 2018
|
William J. Ryan
|
|
|
|
|
|
|
|
|
|
/s/ Paul T. Bossidy
|
|
Director
|
|
March 1, 2018
|
Paul T. Bossidy
|
|
|
|
|
|
|
|
|
|
/s/ David M. Brunelle
|
|
Director
|
|
March 1, 2018
|
David M. Brunelle
|
|
|
|
|
|
|
|
|
|
/s/ Robert M. Curley
|
|
Director
|
|
March 1, 2018
|
Robert M. Curley
|
|
|
|
|
|
|
|
|
|
/s/ John B. Davies
|
|
Director
|
|
March 1, 2018
|
John B. Davies
|
|
|
|
|
|
|
|
|
|
/s/ J. Williar Dunlaevy
|
|
Director
|
|
March 1, 2018
|
J. Williar Dunlaevy
|
|
|
|
|
|
|
|
|
|
/s/ Cornelius D. Mahoney
|
|
Director
|
|
March 1, 2018
|
Cornelius D. Mahoney
|
|
|
|
|
|
|
|
|
|
/s/ Pamela A. Massad
|
|
Director
|
|
March 1, 2018
|
Pamela A. Massad
|
|
|
|
|
|
|
|
|
|
/s/ Laurie Norton Moffatt
|
|
Director
|
|
March 1, 2018
|
Laurie Norton Moffatt
|
|
|
|
|
|
|
|
|
|
/s/ Richard J. Murphy
|
|
Director
|
|
March 1, 2018
|
Richard J. Murphy
|
|
|
|
|
|
|
|
|
|
/s/ Patrick J. Sheehan
|
|
Director
|
|
March 1, 2018
|
Patrick J. Sheehan
|
|
|
|
|
|
|
|
|
|
/s/ D. Jeffrey Templeton
|
|
Director
|
|
March 1, 2018
|
D. Jeffrey Templeton
|
|
|
|
|
/s/ Michael P. Daly
|
|
/s/ James M. Moses
|
Michael P. Daly
|
|
James M. Moses
|
President & Chief Executive Officer
|
|
Senior Executive Vice President & Chief Financial Officer
|
March 1, 2018
|
|
March 1, 2018
|
|
|
December 31,
|
||||||
(In thousands, except share data)
|
|
2017
|
|
2016
|
||||
Assets
|
|
|
|
|
|
|
||
Cash and due from banks
|
|
$
|
91,122
|
|
|
$
|
71,494
|
|
Short-term investments
|
|
157,641
|
|
|
41,581
|
|
||
Total cash and cash equivalents
|
|
248,763
|
|
|
113,075
|
|
||
|
|
|
|
|
||||
Trading security
|
|
12,277
|
|
|
13,229
|
|
||
Securities available for sale, at fair value
|
|
1,426,099
|
|
|
1,209,537
|
|
||
Securities held to maturity (fair values of 405,276 in 2017 and $337,680 in 2016)
|
|
397,103
|
|
|
334,368
|
|
||
Federal Home Loan Bank stock and other restricted securities
|
|
63,085
|
|
|
71,112
|
|
||
Total securities
|
|
1,898,564
|
|
|
1,628,246
|
|
||
|
|
|
|
|
||||
Loans held for sale, at fair value
|
|
153,620
|
|
|
120,673
|
|
||
|
|
|
|
|
||||
Commercial real estate
|
|
3,264,742
|
|
|
2,616,438
|
|
||
Commercial and industrial loans
|
|
1,803,939
|
|
|
1,062,038
|
|
||
Residential mortgages
|
|
2,102,807
|
|
|
1,893,131
|
|
||
Consumer loans
|
|
1,127,850
|
|
|
978,180
|
|
||
Total loans
|
|
8,299,338
|
|
|
6,549,787
|
|
||
Less: Allowance for loan losses
|
|
(51,834
|
)
|
|
(43,998
|
)
|
||
Net loans
|
|
8,247,504
|
|
|
6,505,789
|
|
||
|
|
|
|
|
||||
Premises and equipment, net
|
|
109,352
|
|
|
93,215
|
|
||
Other real estate owned
|
|
—
|
|
|
151
|
|
||
Goodwill
|
|
519,287
|
|
|
403,106
|
|
||
Other intangible assets
|
|
38,296
|
|
|
19,445
|
|
||
Cash surrender value of bank-owned life insurance
|
|
191,221
|
|
|
139,257
|
|
||
Deferred tax assets, net
|
|
47,061
|
|
|
41,128
|
|
||
Other assets
|
|
117,083
|
|
|
98,457
|
|
||
Total assets
|
|
$
|
11,570,751
|
|
|
$
|
9,162,542
|
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
|
|
||
Demand deposits
|
|
$
|
1,667,323
|
|
|
$
|
1,278,875
|
|
NOW deposits
|
|
673,891
|
|
|
570,583
|
|
||
Money market deposits
|
|
2,776,157
|
|
|
1,781,605
|
|
||
Savings deposits
|
|
741,954
|
|
|
657,486
|
|
||
Time deposits
|
|
2,890,205
|
|
|
2,333,543
|
|
||
Total deposits
|
|
8,749,530
|
|
|
6,622,092
|
|
||
Short-term debt
|
|
667,300
|
|
|
1,082,044
|
|
||
Long-term Federal Home Loan Bank advances
|
|
380,436
|
|
|
142,792
|
|
||
Subordinated notes
|
|
89,339
|
|
|
89,161
|
|
||
Total borrowings
|
|
1,137,075
|
|
|
1,313,997
|
|
||
Other liabilities
|
|
187,882
|
|
|
133,155
|
|
||
Total liabilities
|
|
10,074,487
|
|
|
8,069,244
|
|
Shareholders’ equity
|
|
|
|
|
|
|
||
Preferred Stock (Series B non-voting convertible preferred stock - $0.01 par value; 1,000,000 shares authorized, 521,607 shares issued and outstanding in 2017; 1,000,000 shares authorized, no shares issued and outstanding in 2016)
|
|
40,633
|
|
|
—
|
|
||
Common stock ($.01 par value; 50,000,000 shares authorized, 46,211,894 shares issued, and 45,290,433 shares outstanding in 2017; 50,000,000 shares authorized, 36,732,129 shares issued, and 35,672,817 shares outstanding in 2016)
|
|
460
|
|
|
366
|
|
||
Additional paid-in capital - common stock
|
|
1,242,487
|
|
|
898,989
|
|
||
Unearned compensation
|
|
(6,531
|
)
|
|
(6,374
|
)
|
||
Retained earnings
|
|
239,179
|
|
|
217,494
|
|
||
Accumulated other comprehensive income (loss)
|
|
4,161
|
|
|
9,766
|
|
||
Treasury stock, at cost (921,461 shares in 2017 and 1,059,312 shares in 2016)
|
|
(24,125
|
)
|
|
(26,943
|
)
|
||
Total shareholders’ equity
|
|
1,496,264
|
|
|
1,093,298
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
11,570,751
|
|
|
$
|
9,162,542
|
|
|
|
Years Ended December 31,
|
||||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Interest and dividend income
|
|
|
|
|
|
|
|
|
|
|||
Loans
|
|
$
|
308,099
|
|
|
$
|
242,600
|
|
|
$
|
211,347
|
|
Securities and other
|
|
52,159
|
|
|
37,839
|
|
|
35,683
|
|
|||
Total interest and dividend income
|
|
360,258
|
|
|
280,439
|
|
|
247,030
|
|
|||
Interest expense
|
|
|
|
|
|
|
|
|
|
|||
Deposits
|
|
43,855
|
|
|
30,883
|
|
|
22,948
|
|
|||
Borrowings and subordinated notes
|
|
21,608
|
|
|
17,289
|
|
|
10,233
|
|
|||
Total interest expense
|
|
65,463
|
|
|
48,172
|
|
|
33,181
|
|
|||
Net interest income
|
|
294,795
|
|
|
232,267
|
|
|
213,849
|
|
|||
Non-interest income
|
|
|
|
|
|
|
|
|
|
|||
Mortgage banking income
|
|
54,251
|
|
|
7,555
|
|
|
4,133
|
|
|||
Loan related income
|
|
21,401
|
|
|
16,694
|
|
|
8,310
|
|
|||
Deposit related fees
|
|
27,165
|
|
|
24,963
|
|
|
25,084
|
|
|||
Insurance commissions and fees
|
|
10,589
|
|
|
10,477
|
|
|
10,251
|
|
|||
Wealth management fees
|
|
9,395
|
|
|
8,917
|
|
|
9,702
|
|
|||
Total fee income
|
|
122,801
|
|
|
68,606
|
|
|
57,480
|
|
|||
Other
|
|
(3,377
|
)
|
|
(3,289
|
)
|
|
(5,302
|
)
|
|||
Gain (Loss) on securities, net
|
|
12,598
|
|
|
(551
|
)
|
|
2,110
|
|
|||
Gain on sale of business operations, net
|
|
296
|
|
|
1,085
|
|
|
—
|
|
|||
Loss on termination of hedges
|
|
(6,629
|
)
|
|
—
|
|
|
—
|
|
|||
Total non-interest income
|
|
125,689
|
|
|
65,851
|
|
|
54,288
|
|
|||
Total net revenue
|
|
420,484
|
|
|
298,118
|
|
|
268,137
|
|
|||
Provision for loan losses
|
|
21,025
|
|
|
17,362
|
|
|
16,726
|
|
|||
Non-interest expense
|
|
|
|
|
|
|
|
|
|
|||
Compensation and benefits
|
|
152,979
|
|
|
104,600
|
|
|
97,370
|
|
|||
Occupancy and equipment
|
|
35,422
|
|
|
27,220
|
|
|
28,486
|
|
|||
Technology and communications
|
|
25,900
|
|
|
19,883
|
|
|
16,881
|
|
|||
Marketing and promotion
|
|
11,877
|
|
|
3,161
|
|
|
3,306
|
|
|||
Professional services
|
|
9,165
|
|
|
6,199
|
|
|
5,172
|
|
|||
FDIC premiums and assessments
|
|
6,457
|
|
|
5,066
|
|
|
4,649
|
|
|||
Other real estate owned and foreclosures
|
|
44
|
|
|
691
|
|
|
833
|
|
|||
Amortization of intangible assets
|
|
3,493
|
|
|
2,927
|
|
|
3,563
|
|
|||
Merger, restructuring and conversion related expenses
|
|
31,558
|
|
|
15,461
|
|
|
17,611
|
|
|||
Other
|
|
22,815
|
|
|
18,094
|
|
|
18,958
|
|
|||
Total non-interest expense
|
|
299,710
|
|
|
203,302
|
|
|
196,829
|
|
|||
Income from continuing operations before income taxes
|
|
99,749
|
|
|
77,454
|
|
|
54,582
|
|
|||
Income tax expense
|
|
44,502
|
|
|
18,784
|
|
|
5,064
|
|
|||
Net income
|
|
$
|
55,247
|
|
|
$
|
58,670
|
|
|
$
|
49,518
|
|
Preferred stock dividend
|
|
219
|
|
|
—
|
|
|
—
|
|
|||
Income available to common shareholders
|
|
$
|
55,028
|
|
|
$
|
58,670
|
|
|
$
|
49,518
|
|
|
|
|
|
|
|
|
||||||
Earnings per common share:
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
1.40
|
|
|
$
|
1.89
|
|
|
$
|
1.74
|
|
Diluted
|
|
$
|
1.39
|
|
|
$
|
1.88
|
|
|
$
|
1.73
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|||
Basic
|
|
39,456
|
|
|
30,988
|
|
|
28,393
|
|
|||
Diluted
|
|
39,695
|
|
|
31,167
|
|
|
28,564
|
|
|
|
Years Ended December 31,
|
||||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Net income
|
|
$
|
55,247
|
|
|
$
|
58,670
|
|
|
$
|
49,518
|
|
Other comprehensive income (loss), before tax:
|
|
|
|
|
|
|
|
|
|
|||
Changes in unrealized gains and losses on securities available-for-sale
|
|
(15,142
|
)
|
|
18,859
|
|
|
(9,677
|
)
|
|||
Changes in unrealized gains and losses on derivative hedges
|
|
6,573
|
|
|
1,959
|
|
|
(5,232
|
)
|
|||
Changes in unrealized gains and losses on pension
|
|
(94
|
)
|
|
515
|
|
|
(1,177
|
)
|
|||
Total other comprehensive income (loss), before tax
|
|
(8,663
|
)
|
|
21,333
|
|
|
(16,086
|
)
|
|||
Income taxes related to other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|||
Changes in unrealized gains and losses on securities available-for-sale
|
|
5,610
|
|
|
(7,199
|
)
|
|
3,640
|
|
|||
Changes in unrealized gains and losses on derivative hedges
|
|
(2,589
|
)
|
|
(835
|
)
|
|
2,094
|
|
|||
Changes in unrealized gains and losses on pension
|
|
37
|
|
|
(228
|
)
|
|
468
|
|
|||
Total income tax (expense) benefit related to other comprehensive income (loss)
|
|
3,058
|
|
|
(8,262
|
)
|
|
6,202
|
|
|||
Total other comprehensive income (loss)
|
|
(5,605
|
)
|
|
13,071
|
|
|
(9,884
|
)
|
|||
Total comprehensive income
|
|
$
|
49,642
|
|
|
$
|
71,741
|
|
|
$
|
39,634
|
|
|
Preferred Stock
|
Common Stock
|
Additional paid-in
|
Unearned
|
Retained
|
Accumulated other comprehensive
|
Treasury
|
|
|||||||||||||||||||
(In thousands, except per share data)
|
Shares
|
Amount
|
Shares
|
Amount
|
capital
|
compensation
|
earnings
|
(loss) income
|
stock
|
Total
|
|||||||||||||||||
Balance at January 1, 2015
|
—
|
|
—
|
|
25,183
|
|
$
|
265
|
|
$
|
585,289
|
|
$
|
(6,147
|
)
|
$
|
156,446
|
|
$
|
6,579
|
|
$
|
(33,145
|
)
|
$
|
709,287
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
49,518
|
|
—
|
|
—
|
|
49,518
|
|
|||||||
Other net comprehensive (loss)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(9,884
|
)
|
—
|
|
(9,884
|
)
|
|||||||
Total comprehensive income
|
=sum(J5:J6)
|
|
=sum(J5:J6)
|
|
=sum(J5:J6)
|
|
=sum(J5:J6)
|
|
=sum(J5:J6)
|
|
=sum(J5:J6)
|
|
49,518
|
|
(9,884
|
)
|
—
|
|
39,634
|
|
|||||||
Acquisition of Hampden Bancorp, Inc
|
—
|
|
—
|
|
4,186
|
|
42
|
|
114,562
|
|
—
|
|
—
|
|
—
|
|
—
|
|
114,604
|
|
|||||||
Acquisition of Firestone Financial
|
—
|
|
—
|
|
1,442
|
|
15
|
|
42,092
|
|
—
|
|
—
|
|
—
|
|
—
|
|
42,107
|
|
|||||||
Cash dividends declared on common shares ($0.76 per share)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(21,903
|
)
|
—
|
|
—
|
|
(21,903
|
)
|
|||||||
Treasury stock purchased
|
—
|
|
—
|
|
(18
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(550
|
)
|
(550
|
)
|
|||||||
Forfeited shares
|
—
|
|
—
|
|
(20
|
)
|
—
|
|
47
|
|
509
|
|
—
|
|
—
|
|
(556
|
)
|
—
|
|
|||||||
Exercise of stock options
|
—
|
|
—
|
|
16
|
|
—
|
|
—
|
|
—
|
|
(176
|
)
|
—
|
|
415
|
|
239
|
|
|||||||
Restricted stock grants
|
—
|
|
—
|
|
226
|
|
—
|
|
440
|
|
(6,029
|
)
|
—
|
|
—
|
|
5,589
|
|
—
|
|
|||||||
Stock-based compensation
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4,670
|
|
—
|
|
—
|
|
—
|
|
4,670
|
|
|||||||
Net tax benefit related to stock-based compensation
|
—
|
|
—
|
|
—
|
|
—
|
|
167
|
|
—
|
|
—
|
|
—
|
|
—
|
|
167
|
|
|||||||
Other, net
|
—
|
|
—
|
|
(41
|
)
|
—
|
|
22
|
|
—
|
|
—
|
|
—
|
|
(1,088
|
)
|
(1,066
|
)
|
|||||||
Balance at December 31, 2015
|
—
|
|
—
|
|
30,974
|
|
$
|
322
|
|
$
|
742,619
|
|
$
|
(6,997
|
)
|
$
|
183,885
|
|
$
|
(3,305
|
)
|
$
|
(29,335
|
)
|
$
|
887,189
|
|
Comprehensive income:
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
58,670
|
|
—
|
|
—
|
|
58,670
|
|
|||||||
Other net comprehensive income
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
13,071
|
|
—
|
|
13,071
|
|
|||||||
Total comprehensive income
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
58,670
|
|
13,071
|
|
—
|
|
71,741
|
|
|||||||
Acquisition of 44 Business Capital
|
—
|
|
—
|
|
45
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,217
|
|
1,217
|
|
|||||||
Acquisition of First Choice Bank
|
—
|
|
—
|
|
4,410
|
|
44
|
|
151,004
|
|
—
|
|
—
|
|
—
|
|
—
|
|
151,048
|
|
|||||||
Cash dividends declared on common shares ($0.80 per share)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(24,916
|
)
|
—
|
|
—
|
|
(24,916
|
)
|
|||||||
Treasury stock adjustment (1)
|
—
|
|
—
|
|
—
|
|
—
|
|
4,632
|
|
—
|
|
—
|
|
—
|
|
(4,632
|
)
|
—
|
|
|||||||
Forfeited shares
|
—
|
|
—
|
|
(70
|
)
|
—
|
|
148
|
|
1,789
|
|
—
|
|
—
|
|
(1,937
|
)
|
—
|
|
|||||||
Exercise of stock options
|
—
|
|
—
|
|
151
|
|
—
|
|
—
|
|
—
|
|
(145
|
)
|
—
|
|
3,857
|
|
3,712
|
|
|||||||
Restricted stock grants
|
—
|
|
—
|
|
211
|
|
—
|
|
575
|
|
(5,787
|
)
|
—
|
|
—
|
|
5,212
|
|
—
|
|
|||||||
Stock-based compensation
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4,621
|
|
—
|
|
—
|
|
—
|
|
4,621
|
|
|||||||
Net tax benefit related to stock-based compensation
|
—
|
|
—
|
|
—
|
|
—
|
|
(1
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(1
|
)
|
|||||||
Other, net
|
—
|
|
—
|
|
(48
|
)
|
—
|
|
12
|
|
—
|
|
—
|
|
—
|
|
(1,325
|
)
|
(1,313
|
)
|
|||||||
Balance at December 31, 2016
|
—
|
|
—
|
|
35,673
|
|
$
|
366
|
|
$
|
898,989
|
|
$
|
(6,374
|
)
|
$
|
217,494
|
|
$
|
9,766
|
|
$
|
(26,943
|
)
|
$
|
1,093,298
|
|
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net income
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
55,247
|
|
—
|
|
—
|
|
55,247
|
|
|||||||
Other net comprehensive (loss)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(5,605
|
)
|
—
|
|
(5,605
|
)
|
|||||||
Total comprehensive income
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
55,247
|
|
(5,605
|
)
|
—
|
|
49,642
|
|
|||||||
Acquisition of Commerce Bank
|
522
|
|
40,633
|
|
4,842
|
|
48
|
|
188,552
|
|
—
|
|
—
|
|
—
|
|
—
|
|
229,233
|
|
|||||||
Common stock issued, net of $7.1 million offering costs
|
—
|
|
—
|
|
4,638
|
|
46
|
|
152,938
|
|
—
|
|
—
|
|
—
|
|
—
|
|
152,984
|
|
|||||||
Cash dividends declared on common shares ($0.84 per share)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(33,022
|
)
|
—
|
|
—
|
|
(33,022
|
)
|
|||||||
Cash dividends declared on preferred shares ($0.42 per share)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(219
|
)
|
—
|
|
—
|
|
(219
|
)
|
|||||||
Forfeited shares
|
—
|
|
—
|
|
(17
|
)
|
—
|
|
102
|
|
516
|
|
—
|
|
—
|
|
(618
|
)
|
—
|
|
|||||||
Exercise of stock options
|
—
|
|
—
|
|
19
|
|
—
|
|
—
|
|
—
|
|
(158
|
)
|
—
|
|
487
|
|
329
|
|
|||||||
Restricted stock grants
|
—
|
|
—
|
|
161
|
|
—
|
|
1,650
|
|
(5,775
|
)
|
—
|
|
—
|
|
4,125
|
|
—
|
|
|||||||
Stock-based compensation
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
5,102
|
|
—
|
|
—
|
|
—
|
|
5,102
|
|
|||||||
Other, net
|
—
|
|
—
|
|
(26
|
)
|
—
|
|
256
|
|
—
|
|
(163
|
)
|
—
|
|
(1,176
|
)
|
(1,083
|
)
|
|||||||
Balance at December 31, 2017
|
522
|
|
40,633
|
|
45,290
|
|
$
|
460
|
|
$
|
1,242,487
|
|
$
|
(6,531
|
)
|
$
|
239,179
|
|
$
|
4,161
|
|
$
|
(24,125
|
)
|
$
|
1,496,264
|
|
|
|
Years Ended December 31,
|
||||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|||
Net income
|
|
$
|
55,247
|
|
|
$
|
58,670
|
|
|
$
|
49,518
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|||
Provision for loan losses
|
|
21,025
|
|
|
17,362
|
|
|
16,726
|
|
|||
Net amortization of securities
|
|
1,678
|
|
|
4,052
|
|
|
3,010
|
|
|||
Net change in unamortized loan origination costs and premium
|
|
2,232
|
|
|
(4,138
|
)
|
|
(961
|
)
|
|||
Premises and equipment depreciation and amortization expense
|
|
9,916
|
|
|
8,393
|
|
|
8,594
|
|
|||
Stock-based compensation expense
|
|
5,102
|
|
|
4,621
|
|
|
4,686
|
|
|||
Accretion of purchase accounting entries, net
|
|
(18,189
|
)
|
|
(9,407
|
)
|
|
(10,074
|
)
|
|||
Amortization of other intangibles
|
|
3,493
|
|
|
2,927
|
|
|
3,563
|
|
|||
Write down of other real estate owned
|
|
10
|
|
|
395
|
|
|
480
|
|
|||
Excess tax loss from stock-based payment arrangements
|
|
—
|
|
|
(105
|
)
|
|
(167
|
)
|
|||
Income from cash surrender value of bank-owned life insurance policies
|
|
(3,615
|
)
|
|
(3,913
|
)
|
|
(3,356
|
)
|
|||
(Loss) gain on sales of securities, net
|
|
(12,598
|
)
|
|
551
|
|
|
(2,110
|
)
|
|||
Net (increase) decrease in loans held for sale
|
|
(32,947
|
)
|
|
5,185
|
|
|
(3,212
|
)
|
|||
Loss on disposition of assets
|
|
912
|
|
|
1,318
|
|
|
3,514
|
|
|||
(Gain) loss on sale of real estate
|
|
(51
|
)
|
|
40
|
|
|
191
|
|
|||
Amortization of tax credits
|
|
8,477
|
|
|
8,882
|
|
|
11,428
|
|
|||
Remeasurement of deferred tax asset
|
|
18,145
|
|
|
—
|
|
|
—
|
|
|||
Net change in other
|
|
19,254
|
|
|
3,309
|
|
|
4,458
|
|
|||
Net cash provided by operating activities
|
|
78,091
|
|
|
98,142
|
|
|
86,288
|
|
|||
|
|
|
|
|
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|||
Net decrease in trading security
|
|
632
|
|
|
599
|
|
|
570
|
|
|||
Proceeds from sales of securities available for sale
|
|
188,921
|
|
|
421,843
|
|
|
41,169
|
|
|||
Proceeds from maturities, calls and prepayments of securities available for sale
|
|
206,648
|
|
|
166,736
|
|
|
184,753
|
|
|||
Purchases of securities available for sale
|
|
(498,646
|
)
|
|
(400,053
|
)
|
|
(285,637
|
)
|
|||
Proceeds from maturities, calls and prepayments of securities held to maturity
|
|
12,600
|
|
|
7,734
|
|
|
8,534
|
|
|||
Purchases of securities held to maturity
|
|
(77,208
|
)
|
|
(7,115
|
)
|
|
(62,274
|
)
|
|||
Net change in loans
|
|
(468,331
|
)
|
|
(334,347
|
)
|
|
(388,091
|
)
|
|||
Acquisitions, net of cash paid
|
|
374,611
|
|
|
(48,180
|
)
|
|
74,324
|
|
|||
Net cash used for branch sale
|
|
—
|
|
|
—
|
|
|
(11,715
|
)
|
|||
Proceeds from surrender of bank-owned life insurance
|
|
310
|
|
|
258
|
|
|
554
|
|
|||
Purchase of bank-owned life insurance
|
|
(20,000
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from sale of Federal Home Loan Bank stock
|
|
96,378
|
|
|
19,461
|
|
|
2,357
|
|
|||
Purchase of Federal Home Loan Bank stock
|
|
(88,351
|
)
|
|
(19,555
|
)
|
|
(10,706
|
)
|
|||
Proceeds from premises and equipment
|
|
—
|
|
|
226
|
|
|
2,261
|
|
|||
Purchase of premises and equipment, net
|
|
(12,528
|
)
|
|
(9,101
|
)
|
|
(7,340
|
)
|
|||
Net investment in limited partnership tax credits
|
|
(5,102
|
)
|
|
(7,616
|
)
|
|
(5,105
|
)
|
|||
Payment to terminate cash flow hedges
|
|
6,573
|
|
|
—
|
|
|
—
|
|
|||
Proceeds from sale of other real estate
|
|
590
|
|
|
1,515
|
|
|
1,854
|
|
|||
Net cash used in investing activities
|
|
(282,903
|
)
|
|
(207,595
|
)
|
|
(454,492
|
)
|
|
|
Years ended December 31,
|
||||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|||
Net increase in deposits
|
|
$
|
418,550
|
|
|
$
|
140,730
|
|
|
$
|
475,823
|
|
Proceeds from Federal Home Loan Bank advances and other borrowings
|
|
5,978,358
|
|
|
9,364,599
|
|
|
8,566,300
|
|
|||
Repayments of Federal Home Loan Bank advances and other borrowings
|
|
(6,174,781
|
)
|
|
(9,365,159
|
)
|
|
(8,620,064
|
)
|
|||
Issuance of common stock, net of $7.1 million offering costs
|
|
152,985
|
|
|
—
|
|
|
—
|
|
|||
Purchase of treasury stock
|
|
—
|
|
|
—
|
|
|
(550
|
)
|
|||
Exercise of stock options
|
|
329
|
|
|
3,712
|
|
|
239
|
|
|||
Excess tax loss from stock-based payment arrangements
|
|
—
|
|
|
—
|
|
|
167
|
|
|||
Cash dividends paid
|
|
(33,241
|
)
|
|
(24,916
|
)
|
|
(21,903
|
)
|
|||
Acquisition contingent consideration paid
|
|
(1,700
|
)
|
|
—
|
|
|
—
|
|
|||
Net cash provided by financing activities
|
|
340,500
|
|
|
118,966
|
|
|
400,012
|
|
|||
|
|
|
|
|
|
|
||||||
Net change in cash and cash equivalents
|
|
135,688
|
|
|
9,513
|
|
|
31,808
|
|
|||
|
|
|
|
|
|
|
||||||
Cash and cash equivalents at beginning of year
|
|
113,075
|
|
|
103,562
|
|
|
71,754
|
|
|||
|
|
|
|
|
|
|
||||||
Cash and cash equivalents at end of year
|
|
$
|
248,763
|
|
|
$
|
113,075
|
|
|
$
|
103,562
|
|
|
|
|
|
|
|
|
||||||
Supplemental cash flow information:
|
|
|
|
|
|
|
|
|
|
|||
Interest paid on deposits
|
|
$
|
43,133
|
|
|
$
|
28,777
|
|
|
$
|
22,130
|
|
Interest paid on borrowed funds
|
|
21,336
|
|
|
16,674
|
|
|
9,974
|
|
|||
Income taxes paid, net
|
|
18,323
|
|
|
16,229
|
|
|
429
|
|
|||
|
|
|
|
|
|
|
||||||
Acquisition of non-cash assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|||
Assets acquired
|
|
1,584,786
|
|
|
1,169,086
|
|
|
948,796
|
|
|||
Liabilities assumed
|
|
(1,959,489
|
)
|
|
(965,529
|
)
|
|
(762,261
|
)
|
|||
|
|
|
|
|
|
|
||||||
Other non-cash changes:
|
|
|
|
|
|
|
|
|
|
|||
Other net comprehensive (loss) income
|
|
(5,605
|
)
|
|
13,071
|
|
|
(9,884
|
)
|
|||
Real estate owned acquired in settlement of loans
|
|
490
|
|
|
340
|
|
|
2,085
|
|
•
|
National and local economic conditions, regulatory/legislative changes, or other competitive factors affecting the collectability of the portfolio
|
•
|
Trends in underwriting characteristics, composition of the portfolio, and/or asset quality
|
•
|
Changes in underwriting standards and/or collection, charge off, recovery, and account management practice
|
•
|
The existence and effect of any concentrations of credit
|
•
|
ASU No. 2016-05, Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships;
|
•
|
ASU No. 2016-06, Contingent Put and Call Options in Debt Instruments;
|
•
|
ASU No. 2016-07, Simplifying the Transition to the Equity Method of Accounting
|
•
|
ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments; and
|
•
|
ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities
|
|
|
|
|
Fair Value
|
|
|
|
As Recorded by
|
||||||
(in thousands)
|
|
As Acquired
|
|
Adjustments
|
|
|
|
the Company
|
||||||
Consideration Paid:
|
|
|
|
|
|
|
|
|
||||||
Company common stock issued to Commerce common shareholders
|
|
$
|
188,599
|
|
||||||||||
Company preferred stock issued to certain Commerce shareholders
|
|
|
|
|
|
|
|
40,633
|
|
|||||
Cash in lieu paid to Commerce shareholders
|
|
|
|
|
|
|
|
1
|
|
|||||
Total consideration paid
|
|
|
|
|
|
|
|
$
|
229,233
|
|
||||
Recognized amounts of identifiable assets acquired and (liabilities) assumed, at fair value:
|
||||||||||||||
Cash and short-term investments
|
|
$
|
374,611
|
|
|
$
|
—
|
|
|
|
|
$
|
374,611
|
|
Investment securities
|
|
115,274
|
|
|
(1,427
|
)
|
|
(a)
|
|
113,847
|
|
|||
Loans, net
|
|
1,327,256
|
|
|
(86,505
|
)
|
|
(b)
|
|
1,240,751
|
|
|||
Premises and equipment
|
|
8,931
|
|
|
5,346
|
|
|
(c)
|
|
14,277
|
|
|||
Core deposit intangibles
|
|
—
|
|
|
22,400
|
|
|
(d)
|
|
22,400
|
|
|||
Deferred tax assets, net
|
|
7,956
|
|
|
26,580
|
|
|
(e)
|
|
34,536
|
|
|||
Goodwill and other intangibles
|
|
11,233
|
|
|
(11,233
|
)
|
|
(f)
|
|
—
|
|
|||
Other assets
|
|
52,709
|
|
|
(3,664
|
)
|
|
(g)
|
|
49,045
|
|
|||
Deposits
|
|
(1,710,872
|
)
|
|
(1,180
|
)
|
|
(h)
|
|
(1,712,052
|
)
|
|||
Borrowings
|
|
(19,542
|
)
|
|
—
|
|
|
|
|
(19,542
|
)
|
|||
Other liabilities
|
|
(5,086
|
)
|
|
265
|
|
|
|
|
(4,821
|
)
|
|||
Total identifiable net assets
|
|
$
|
162,470
|
|
|
$
|
(49,418
|
)
|
|
|
|
$
|
113,052
|
|
|
|
|
|
|
|
|
|
|
||||||
Goodwill
|
|
|
|
|
|
|
|
$
|
116,181
|
|
(a)
|
The adjustment represents the write down of the book value of securities to their estimated fair value at the date of acquisition.
|
(b)
|
The adjustment represents the write-off of
$15.0 million
in allowance for loan and lease losses and the write down of the book value of loans to their estimated fair value based on interest rates and expected cash flows as of the acquisition date, which includes an estimate of expected loan loss inherent in the portfolio. The valuation of the loans is provisional. Loans with evidence of credit deterioration at acquisition are accounted for under ASC 310-30 and had a book value of
$163.1 million
and had a fair value of
$71.1 million
. Non-impaired loans accounted for under ASC 310-20 had a book value of
$1.18 billion
and have a fair value of
$1.17 billion
. ASC 310-30 loans have a
$10.8 million
fair value adjustment that is accretable in earnings. ASC 310-20 loans have a
$4.0 million
fair value adjustment premium that is amortized over the remaining term of the loans using the effective interest method, or a straight-line method if the loan is a revolving credit facility.
|
(c)
|
The adjustment represents an increased fair value based on the appraised value of Commerce’s owned branches and headquarters comprised of
$5.7 million
for buildings and
$0.7 million
for land. This was offset by a
$1.0 million
reduction of the book value of furniture, fixtures, and equipment, to their estimated fair value and the immediate expensing of equipment not meeting the thresholds for capitalization in accordance with Company policy. The adjustments will be depreciated over the remaining estimated economic lives of the assets.
|
(d)
|
The adjustment represents the value of the core deposit base assumed in the acquisition. The core deposit asset was recorded as an identifiable intangible asset and will be amortized over the estimated useful life of the deposit base (
10 years
).
|
(e)
|
Represents net deferred tax assets resulting from the fair value adjustments related to the acquired assets and liabilities, identifiable intangibles, and other purchase accounting adjustments.
|
(f)
|
Represents the write-off of goodwill and intangible assets from a prior Commerce acquisition.
|
(g)
|
The adjustment includes a
$3.5 million
write-down of repossessed assets based on market report data.
|
(h)
|
The adjustment is necessary because the weighted average interest rate of time deposits exceeded the cost of similar funding at the time of acquisition. The amount will be amortized over the estimated useful life of nine months.
|
|
ASC 310-30 Loans
|
||
Gross contractual receivable amounts at acquisition
|
$
|
163,125
|
|
Contractual cash flows not expected to be collected (nonaccretable discount)
|
(81,205
|
)
|
|
Expected cash flows at acquisition
|
81,920
|
|
|
Interest component of expected cash flows (accretable discount)
|
(10,815
|
)
|
|
Fair value of acquired loans
|
$
|
71,105
|
|
|
|
Pro Forma (unaudited)
Years ended December 31, |
||||||
|
|
2017
|
|
2016
|
||||
Net interest income
|
|
$
|
344,797
|
|
|
$
|
302,012
|
|
Non-interest income
|
|
134,818
|
|
|
77,192
|
|
||
Income available to common shareholders
|
|
77,340
|
|
|
78,859
|
|
(In thousands)
|
|
Amortized
Cost |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses |
|
Fair Value
|
||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Securities available for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Municipal bonds and obligations
|
|
$
|
113,427
|
|
|
$
|
5,012
|
|
|
$
|
(206
|
)
|
|
$
|
118,233
|
|
Agency collateralized mortgage obligations
|
|
859,705
|
|
|
397
|
|
|
(8,944
|
)
|
|
851,158
|
|
||||
Agency mortgage-backed securities
|
|
218,926
|
|
|
279
|
|
|
(2,265
|
)
|
|
216,940
|
|
||||
Agency commercial mortgage-backed securities
|
|
64,025
|
|
|
41
|
|
|
(1,761
|
)
|
|
62,305
|
|
||||
Corporate bonds
|
|
110,076
|
|
|
882
|
|
|
(237
|
)
|
|
110,721
|
|
||||
Trust preferred securities
|
|
11,334
|
|
|
343
|
|
|
—
|
|
|
11,677
|
|
||||
Other bonds and obligations
|
|
9,757
|
|
|
154
|
|
|
(31
|
)
|
|
9,880
|
|
||||
Total debt securities
|
|
1,387,250
|
|
|
7,108
|
|
|
(13,444
|
)
|
|
1,380,914
|
|
||||
Marketable equity securities
|
|
36,483
|
|
|
9,211
|
|
|
(509
|
)
|
|
45,185
|
|
||||
Total securities available for sale
|
|
1,423,733
|
|
|
16,319
|
|
|
(13,953
|
)
|
|
1,426,099
|
|
||||
Securities held to maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Municipal bonds and obligations
|
|
270,310
|
|
|
8,675
|
|
|
(90
|
)
|
|
278,895
|
|
||||
Agency collateralized mortgage obligations
|
|
73,742
|
|
|
1,045
|
|
|
(486
|
)
|
|
74,301
|
|
||||
Agency mortgage-backed securities
|
|
7,892
|
|
|
—
|
|
|
(164
|
)
|
|
7,728
|
|
||||
Agency commercial mortgage-backed securities
|
|
10,481
|
|
|
—
|
|
|
(268
|
)
|
|
10,213
|
|
||||
Tax advantaged economic development bonds
|
|
34,357
|
|
|
596
|
|
|
(1,135
|
)
|
|
33,818
|
|
||||
Other bonds and obligations
|
|
321
|
|
|
—
|
|
|
—
|
|
|
321
|
|
||||
Total securities held to maturity
|
|
397,103
|
|
|
10,316
|
|
|
(2,143
|
)
|
|
405,276
|
|
||||
Total
|
|
$
|
1,820,836
|
|
|
$
|
26,635
|
|
|
$
|
(16,096
|
)
|
|
$
|
1,831,375
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Securities available for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Municipal bonds and obligations
|
|
$
|
117,910
|
|
|
$
|
2,955
|
|
|
$
|
(1,049
|
)
|
|
$
|
119,816
|
|
Agency collateralized mortgage obligations
|
|
652,680
|
|
|
2,522
|
|
|
(3,291
|
)
|
|
651,911
|
|
||||
Agency mortgage-backed securities
|
|
230,308
|
|
|
557
|
|
|
(2,181
|
)
|
|
228,684
|
|
||||
Agency commercial mortgage-backed securities
|
|
65,673
|
|
|
229
|
|
|
(1,368
|
)
|
|
64,534
|
|
||||
Corporate bonds
|
|
56,320
|
|
|
408
|
|
|
(722
|
)
|
|
56,006
|
|
||||
Trust preferred securities
|
|
11,578
|
|
|
368
|
|
|
(59
|
)
|
|
11,887
|
|
||||
Other bonds and obligations
|
|
10,979
|
|
|
195
|
|
|
(16
|
)
|
|
11,158
|
|
||||
Total debt securities
|
|
1,145,448
|
|
|
7,234
|
|
|
(8,686
|
)
|
|
1,143,996
|
|
||||
Marketable equity securities
|
|
47,858
|
|
|
19,296
|
|
|
(1,613
|
)
|
|
65,541
|
|
||||
Total securities available for sale
|
|
1,193,306
|
|
|
26,530
|
|
|
(10,299
|
)
|
|
1,209,537
|
|
||||
Securities held to maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Municipal bonds and obligations
|
|
203,463
|
|
|
3,939
|
|
|
(2,416
|
)
|
|
204,986
|
|
||||
Agency collateralized mortgage-backed securities
|
|
75,655
|
|
|
1,281
|
|
|
(411
|
)
|
|
76,525
|
|
||||
Agency mortgage-backed securities
|
|
9,102
|
|
|
—
|
|
|
(243
|
)
|
|
8,859
|
|
||||
Agency commercial mortgage-backed securities
|
|
10,545
|
|
|
—
|
|
|
(434
|
)
|
|
10,111
|
|
||||
Tax advantaged economic development bonds
|
|
35,278
|
|
|
1,596
|
|
|
—
|
|
|
36,874
|
|
||||
Other bonds and obligations
|
|
325
|
|
|
—
|
|
|
—
|
|
|
325
|
|
||||
Total securities held to maturity
|
|
334,368
|
|
|
6,816
|
|
|
(3,504
|
)
|
|
337,680
|
|
||||
Total
|
|
$
|
1,527,674
|
|
|
$
|
33,346
|
|
|
$
|
(13,803
|
)
|
|
$
|
1,547,217
|
|
|
|
Available for sale
|
|
Held to maturity
|
||||||||||||
(In thousands)
|
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||
Within 1 year
|
|
$
|
622
|
|
|
$
|
623
|
|
|
$
|
1,261
|
|
|
$
|
1,261
|
|
Over 1 year to 5 years
|
|
32,659
|
|
|
32,972
|
|
|
25,892
|
|
|
26,422
|
|
||||
Over 5 years to 10 years
|
|
75,261
|
|
|
76,745
|
|
|
8,752
|
|
|
8,917
|
|
||||
Over 10 years
|
|
136,052
|
|
|
140,171
|
|
|
269,083
|
|
|
276,434
|
|
||||
Total bonds and obligations
|
|
244,594
|
|
|
250,511
|
|
|
304,988
|
|
|
313,034
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Marketable equity securities
|
|
36,483
|
|
|
45,185
|
|
|
—
|
|
|
—
|
|
||||
Mortgage-backed securities
|
|
1,142,656
|
|
|
1,130,403
|
|
|
92,115
|
|
|
92,242
|
|
||||
Total
|
|
$
|
1,423,733
|
|
|
$
|
1,426,099
|
|
|
$
|
397,103
|
|
|
$
|
405,276
|
|
|
|
2017
|
|
2016
|
||||||||||||
(In thousands)
|
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
||||||||
Securities pledged to swap counterparties
|
|
$
|
24,410
|
|
|
$
|
24,240
|
|
|
$
|
51,292
|
|
|
$
|
51,290
|
|
Securities pledged for municipal deposits
|
|
210,382
|
|
|
214,513
|
|
|
147,950
|
|
|
148,435
|
|
||||
Total
|
|
$
|
234,792
|
|
|
$
|
238,753
|
|
|
$
|
199,242
|
|
|
$
|
199,725
|
|
(In thousands)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Gross realized gains
|
|
$
|
13,877
|
|
|
$
|
2,762
|
|
|
$
|
4,567
|
|
Gross realized losses
|
|
(1,279
|
)
|
|
(3,313
|
)
|
|
(2,457
|
)
|
|||
Net realized gains/(losses)
|
|
$
|
12,598
|
|
|
$
|
(551
|
)
|
|
$
|
2,110
|
|
|
|
Less Than Twelve Months
|
|
Over Twelve Months
|
|
Total
|
||||||||||||||||||
(In thousands)
|
|
Gross
Unrealized Losses |
|
Fair
Value |
|
Gross
Unrealized Losses |
|
Fair
Value |
|
Gross
Unrealized Losses |
|
Fair
Value |
||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Securities available for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Municipal bonds and obligations
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
206
|
|
|
$
|
8,985
|
|
|
$
|
206
|
|
|
$
|
8,985
|
|
Agency collateralized mortgage obligations
|
|
6,849
|
|
|
655,479
|
|
|
2,095
|
|
|
80,401
|
|
|
8,944
|
|
|
735,880
|
|
||||||
Agency mortgage-backed securities
|
|
765
|
|
|
95,800
|
|
|
1,500
|
|
|
65,323
|
|
|
2,265
|
|
|
161,123
|
|
||||||
Agency commercial mortgage-back securities
|
|
334
|
|
|
17,379
|
|
|
1,427
|
|
|
39,268
|
|
|
1,761
|
|
|
56,647
|
|
||||||
Corporate bonds
|
|
1
|
|
|
328
|
|
|
236
|
|
|
15,769
|
|
|
237
|
|
|
16,097
|
|
||||||
Trust preferred securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other bonds and obligations
|
|
11
|
|
|
1,096
|
|
|
20
|
|
|
2,004
|
|
|
31
|
|
|
3,100
|
|
||||||
Total debt securities
|
|
7,960
|
|
|
770,082
|
|
|
5,484
|
|
|
211,750
|
|
|
13,444
|
|
|
981,832
|
|
||||||
Marketable equity securities
|
|
509
|
|
|
3,731
|
|
|
—
|
|
|
—
|
|
|
509
|
|
|
3,731
|
|
||||||
Total securities available for sale
|
|
$
|
8,469
|
|
|
$
|
773,813
|
|
|
$
|
5,484
|
|
|
$
|
211,750
|
|
|
$
|
13,953
|
|
|
$
|
985,563
|
|
Securities held to maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Municipal bonds and obligations
|
|
35
|
|
|
10,213
|
|
|
55
|
|
|
2,059
|
|
|
90
|
|
|
12,272
|
|
||||||
Agency collateralized mortgage obligations
|
|
—
|
|
|
—
|
|
|
486
|
|
|
12,946
|
|
|
486
|
|
|
12,946
|
|
||||||
Agency mortgage-backed securities
|
|
—
|
|
|
—
|
|
|
164
|
|
|
7,728
|
|
|
164
|
|
|
7,728
|
|
||||||
Agency commercial mortgage-back securities
|
|
—
|
|
|
—
|
|
|
268
|
|
|
10,213
|
|
|
268
|
|
|
10,213
|
|
||||||
Tax advantaged economic development bonds
|
|
1,135
|
|
|
7,305
|
|
|
—
|
|
|
—
|
|
|
1,135
|
|
|
7,305
|
|
||||||
Total securities held to maturity
|
|
1,170
|
|
|
17,518
|
|
|
973
|
|
|
32,946
|
|
|
2,143
|
|
|
50,464
|
|
||||||
Total
|
|
$
|
9,639
|
|
|
$
|
791,331
|
|
|
$
|
6,457
|
|
|
$
|
244,696
|
|
|
$
|
16,096
|
|
|
$
|
1,036,027
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Securities available for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Municipal bonds and obligations
|
|
$
|
1,049
|
|
|
$
|
13,839
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,049
|
|
|
$
|
13,839
|
|
Agency collateralized mortgage obligations
|
|
3,291
|
|
|
319,448
|
|
|
—
|
|
|
—
|
|
|
3,291
|
|
|
319,448
|
|
||||||
Agency mortgage-backed securities
|
|
2,153
|
|
|
130,766
|
|
|
28
|
|
|
2,061
|
|
|
2,181
|
|
|
132,827
|
|
||||||
Agency commercial mortgage-backed securities
|
|
1,368
|
|
|
44,860
|
|
|
—
|
|
|
—
|
|
|
1,368
|
|
|
44,860
|
|
||||||
Corporate bonds
|
|
11
|
|
|
4,780
|
|
|
711
|
|
|
19,655
|
|
|
722
|
|
|
24,435
|
|
||||||
Trust preferred securities
|
|
—
|
|
|
—
|
|
|
59
|
|
|
1,204
|
|
|
59
|
|
|
1,204
|
|
||||||
Other bonds and obligations
|
|
15
|
|
|
3,014
|
|
|
1
|
|
|
27
|
|
|
16
|
|
|
3,041
|
|
||||||
Total debt securities
|
|
7,887
|
|
|
516,707
|
|
|
799
|
|
|
22,947
|
|
|
8,686
|
|
|
539,654
|
|
||||||
Marketable equity securities
|
|
157
|
|
|
6,600
|
|
|
1,456
|
|
|
5,927
|
|
|
1,613
|
|
|
12,527
|
|
||||||
Total securities available for sale
|
|
$
|
8,044
|
|
|
$
|
523,307
|
|
|
$
|
2,255
|
|
|
$
|
28,874
|
|
|
$
|
10,299
|
|
|
$
|
552,181
|
|
Securities held to maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Municipal bonds and obligations
|
|
2,416
|
|
|
69,308
|
|
|
—
|
|
|
—
|
|
|
2,416
|
|
|
69,308
|
|
||||||
Agency collateralized mortgage obligations
|
|
411
|
|
|
14,724
|
|
|
—
|
|
|
—
|
|
|
411
|
|
|
14,724
|
|
||||||
Agency mortgage-backed securities
|
|
243
|
|
|
8,859
|
|
|
—
|
|
|
—
|
|
|
243
|
|
|
8,859
|
|
||||||
Agency commercial mortgage-back securities
|
|
434
|
|
|
10,111
|
|
|
—
|
|
|
—
|
|
|
434
|
|
|
10,111
|
|
||||||
Total securities held to maturity
|
|
3,504
|
|
|
103,002
|
|
|
—
|
|
|
—
|
|
|
3,504
|
|
|
103,002
|
|
||||||
Total
|
|
$
|
11,548
|
|
|
$
|
626,309
|
|
|
$
|
2,255
|
|
|
$
|
28,874
|
|
|
$
|
13,803
|
|
|
$
|
655,183
|
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
(In thousands)
|
|
Business Activities Loans
|
|
Acquired Loans
|
|
Total
|
|
Business Activities Loans
|
|
Acquired Loans
|
|
Total
|
||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Construction
|
|
$
|
181,371
|
|
|
$
|
84,965
|
|
|
$
|
266,336
|
|
|
$
|
253,302
|
|
|
$
|
34,207
|
|
|
$
|
287,509
|
|
Single and multi-family
|
|
217,083
|
|
|
206,082
|
|
|
423,165
|
|
|
191,819
|
|
|
125,672
|
|
|
317,491
|
|
||||||
Other commercial real estate
|
|
1,819,253
|
|
|
755,988
|
|
|
2,575,241
|
|
|
1,481,223
|
|
|
530,215
|
|
|
2,011,438
|
|
||||||
Total commercial real estate
|
|
2,217,707
|
|
|
1,047,035
|
|
|
3,264,742
|
|
|
1,926,344
|
|
|
690,094
|
|
|
2,616,438
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial loans
|
|
1,182,569
|
|
|
621,370
|
|
|
1,803,939
|
|
|
908,102
|
|
|
153,936
|
|
|
1,062,038
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total commercial loans
|
|
3,400,276
|
|
|
1,668,405
|
|
|
5,068,681
|
|
|
2,834,446
|
|
|
844,030
|
|
|
3,678,476
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
1-4 family
|
|
1,808,024
|
|
|
289,373
|
|
|
2,097,397
|
|
|
1,583,794
|
|
|
297,355
|
|
|
1,881,149
|
|
||||||
Construction
|
|
5,177
|
|
|
233
|
|
|
5,410
|
|
|
11,178
|
|
|
804
|
|
|
11,982
|
|
||||||
Total residential mortgages
|
|
1,813,201
|
|
|
289,606
|
|
|
2,102,807
|
|
|
1,594,972
|
|
|
298,159
|
|
|
1,893,131
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Home equity
|
|
294,954
|
|
|
115,227
|
|
|
410,181
|
|
|
313,521
|
|
|
80,279
|
|
|
393,800
|
|
||||||
Auto and other
|
|
603,767
|
|
|
113,902
|
|
|
717,669
|
|
|
478,368
|
|
|
106,012
|
|
|
584,380
|
|
||||||
Total consumer loans
|
|
898,721
|
|
|
229,129
|
|
|
1,127,850
|
|
|
791,889
|
|
|
186,291
|
|
|
978,180
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total loans
|
|
$
|
6,112,198
|
|
|
$
|
2,187,140
|
|
|
$
|
8,299,338
|
|
|
$
|
5,221,307
|
|
|
$
|
1,328,480
|
|
|
$
|
6,549,787
|
|
(In thousands)
|
|
December 31, 2017
|
|
December 31, 2016
|
||||
Unamortized net loan origination costs
|
|
$
|
24,669
|
|
|
$
|
21,972
|
|
Unamortized net premium on purchased loans
|
|
4,311
|
|
|
4,849
|
|
||
Total unamortized net costs and premiums
|
|
$
|
28,980
|
|
|
$
|
26,821
|
|
(In thousands)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Balance at beginning of period
|
|
$
|
8,738
|
|
|
$
|
6,925
|
|
|
$
|
2,541
|
|
Acquisitions
|
|
10,815
|
|
|
6,125
|
|
|
4,777
|
|
|||
Reclassification from nonaccretable difference for loans with improved cash flows
|
|
(23
|
)
|
|
2,488
|
|
|
3,640
|
|
|||
Changes in expected cash flows that do not affect nonaccretable difference
|
|
(2,380
|
)
|
|
(3,018
|
)
|
|
—
|
|
|||
Reclassification to TDR
|
|
—
|
|
|
(185
|
)
|
|
—
|
|
|||
Accretion
|
|
(5,589
|
)
|
|
(3,597
|
)
|
|
(4,033
|
)
|
|||
Balance at end of period
|
|
$
|
11,561
|
|
|
$
|
8,738
|
|
|
$
|
6,925
|
|
(in thousands)
|
|
30-59 Days
Past Due |
|
60-89 Days
Past Due |
|
>90 Days Past Due
|
|
Total Past
Due |
|
Current
|
|
Total Loans
|
|
Past Due >
90 days and Accruing |
||||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Construction
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
181,371
|
|
|
$
|
181,371
|
|
|
$
|
—
|
|
Single and multi-family
|
|
—
|
|
|
—
|
|
|
451
|
|
|
451
|
|
|
216,632
|
|
|
217,083
|
|
|
—
|
|
|||||||
Commercial real estate
|
|
1,925
|
|
|
48
|
|
|
5,023
|
|
|
6,996
|
|
|
1,812,257
|
|
|
1,819,253
|
|
|
457
|
|
|||||||
Total
|
|
1,925
|
|
|
48
|
|
|
5,474
|
|
|
7,447
|
|
|
2,210,260
|
|
|
2,217,707
|
|
|
457
|
|
|||||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total
|
|
4,031
|
|
|
1,912
|
|
|
6,023
|
|
|
11,966
|
|
|
1,170,603
|
|
|
1,182,569
|
|
|
128
|
|
|||||||
Residential mortgages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
1-4 family
|
|
2,412
|
|
|
242
|
|
|
2,186
|
|
|
4,840
|
|
|
1,803,184
|
|
|
1,808,024
|
|
|
520
|
|
|||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,177
|
|
|
5,177
|
|
|
—
|
|
|||||||
Total
|
|
2,412
|
|
|
242
|
|
|
2,186
|
|
|
4,840
|
|
|
1,808,361
|
|
|
1,813,201
|
|
|
520
|
|
|||||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Home equity
|
|
444
|
|
|
1,235
|
|
|
1,747
|
|
|
3,426
|
|
|
291,528
|
|
|
294,954
|
|
|
120
|
|
|||||||
Auto and other
|
|
3,389
|
|
|
599
|
|
|
1,597
|
|
|
5,585
|
|
|
598,182
|
|
|
603,767
|
|
|
143
|
|
|||||||
Total
|
|
3,833
|
|
|
1,834
|
|
|
3,344
|
|
|
9,011
|
|
|
889,710
|
|
|
898,721
|
|
|
263
|
|
|||||||
Total
|
|
$
|
12,201
|
|
|
$
|
4,036
|
|
|
$
|
17,027
|
|
|
$
|
33,264
|
|
|
$
|
6,078,934
|
|
|
$
|
6,112,198
|
|
|
$
|
1,368
|
|
(in thousands)
|
|
30-59 Days
Past Due |
|
60-89 Days
Past Due |
|
>90 Days Past Due
|
|
Total Past
Due |
|
Current
|
|
Total Loans
|
|
Past Due >
90 days and Accruing |
||||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Construction
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
253,302
|
|
|
$
|
253,302
|
|
|
$
|
—
|
|
Single and multi-family
|
|
618
|
|
|
110
|
|
|
624
|
|
|
1,352
|
|
|
190,467
|
|
|
191,819
|
|
|
155
|
|
|||||||
Commercial real estate
|
|
481
|
|
|
2,243
|
|
|
4,212
|
|
|
6,936
|
|
|
1,474,287
|
|
|
1,481,223
|
|
|
—
|
|
|||||||
Total
|
|
1,099
|
|
|
2,353
|
|
|
4,836
|
|
|
8,288
|
|
|
1,918,056
|
|
|
1,926,344
|
|
|
155
|
|
|||||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total
|
|
3,090
|
|
|
1,301
|
|
|
6,290
|
|
|
10,681
|
|
|
897,421
|
|
|
908,102
|
|
|
5
|
|
|||||||
Residential mortgages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
1-4 family
|
|
1,393
|
|
|
701
|
|
|
4,179
|
|
|
6,273
|
|
|
1,577,521
|
|
|
1,583,794
|
|
|
1,956
|
|
|||||||
Construction
|
|
10
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
11,168
|
|
|
11,178
|
|
|
—
|
|
|||||||
Total
|
|
1,403
|
|
|
701
|
|
|
4,179
|
|
|
6,283
|
|
|
1,588,689
|
|
|
1,594,972
|
|
|
1,956
|
|
|||||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Home equity
|
|
99
|
|
|
—
|
|
|
2,981
|
|
|
3,080
|
|
|
310,441
|
|
|
313,521
|
|
|
306
|
|
|||||||
Auto and other
|
|
2,483
|
|
|
494
|
|
|
968
|
|
|
3,945
|
|
|
474,423
|
|
|
478,368
|
|
|
16
|
|
|||||||
Total
|
|
2,582
|
|
|
494
|
|
|
3,949
|
|
|
7,025
|
|
|
784,864
|
|
|
791,889
|
|
|
322
|
|
|||||||
Total
|
|
$
|
8,174
|
|
|
$
|
4,849
|
|
|
$
|
19,254
|
|
|
$
|
32,277
|
|
|
$
|
5,189,030
|
|
|
$
|
5,221,307
|
|
|
$
|
2,438
|
|
(in thousands)
|
|
30-59 Days
Past Due |
|
60-89 Days
Past Due |
|
>90 Days Past Due
|
|
Total Past
Due |
|
Acquired
Credit Impaired |
|
Total Loans
|
|
Past Due >
90 days and Accruing |
||||||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Construction
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,655
|
|
|
$
|
84,965
|
|
|
$
|
—
|
|
Single and multi-family
|
|
671
|
|
|
—
|
|
|
203
|
|
|
874
|
|
|
2,846
|
|
|
206,082
|
|
|
—
|
|
|||||||
Commercial real estate
|
|
816
|
|
|
1,875
|
|
|
2,156
|
|
|
4,847
|
|
|
42,801
|
|
|
755,988
|
|
|
109
|
|
|||||||
Total
|
|
1,487
|
|
|
1,875
|
|
|
2,359
|
|
|
5,721
|
|
|
53,302
|
|
|
1,047,035
|
|
|
109
|
|
|||||||
Commercial and industrial loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total
|
|
1,252
|
|
|
268
|
|
|
1,439
|
|
|
2,959
|
|
|
34,629
|
|
|
621,370
|
|
|
23
|
|
|||||||
Residential mortgages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
1-4 family
|
|
957
|
|
|
2,581
|
|
|
1,247
|
|
|
4,785
|
|
|
6,974
|
|
|
289,373
|
|
|
30
|
|
|||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
233
|
|
|
—
|
|
|||||||
Total
|
|
957
|
|
|
2,581
|
|
|
1,247
|
|
|
4,785
|
|
|
6,974
|
|
|
289,606
|
|
|
30
|
|
|||||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Home equity
|
|
286
|
|
|
40
|
|
|
1,965
|
|
|
2,291
|
|
|
1,956
|
|
|
115,227
|
|
|
—
|
|
|||||||
Auto and other
|
|
346
|
|
|
135
|
|
|
430
|
|
|
911
|
|
|
483
|
|
|
113,902
|
|
|
38
|
|
|||||||
Total
|
|
632
|
|
|
175
|
|
|
2,395
|
|
|
3,202
|
|
|
2,439
|
|
|
229,129
|
|
|
38
|
|
|||||||
Total
|
|
$
|
4,328
|
|
|
$
|
4,899
|
|
|
$
|
7,440
|
|
|
$
|
16,667
|
|
|
$
|
97,344
|
|
|
$
|
2,187,140
|
|
|
$
|
200
|
|
(in thousands)
|
|
30-59 Days
Past Due |
|
60-89 Days
Past Due |
|
>90 Days Past Due
|
|
Total Past
Due |
|
Acquired
Credit Impaired |
|
Total Loans
|
|
Past Due >
90 days and Accruing |
||||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Construction
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
47
|
|
|
$
|
34,207
|
|
|
$
|
—
|
|
Single and multi-family
|
|
2
|
|
|
—
|
|
|
437
|
|
|
439
|
|
|
4,726
|
|
|
125,672
|
|
|
—
|
|
|||||||
Commercial real estate
|
|
1,555
|
|
|
—
|
|
|
765
|
|
|
2,320
|
|
|
30,047
|
|
|
530,215
|
|
|
—
|
|
|||||||
Total
|
|
1,557
|
|
|
—
|
|
|
1,202
|
|
|
2,759
|
|
|
34,820
|
|
|
690,094
|
|
|
—
|
|
|||||||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total
|
|
1,850
|
|
|
15
|
|
|
1,262
|
|
|
3,127
|
|
|
3,369
|
|
|
153,936
|
|
|
24
|
|
|||||||
Residential mortgages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
1-4 family
|
|
321
|
|
|
343
|
|
|
2,015
|
|
|
2,679
|
|
|
7,283
|
|
|
297,355
|
|
|
443
|
|
|||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
804
|
|
|
—
|
|
|||||||
Total
|
|
321
|
|
|
343
|
|
|
2,015
|
|
|
2,679
|
|
|
7,283
|
|
|
298,159
|
|
|
443
|
|
|||||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Home equity
|
|
753
|
|
|
—
|
|
|
870
|
|
|
1,623
|
|
|
957
|
|
|
80,279
|
|
|
353
|
|
|||||||
Auto and other
|
|
542
|
|
|
314
|
|
|
1,686
|
|
|
2,542
|
|
|
387
|
|
|
106,012
|
|
|
791
|
|
|||||||
Total
|
|
1,295
|
|
|
314
|
|
|
2,556
|
|
|
4,165
|
|
|
1,344
|
|
|
186,291
|
|
|
1,144
|
|
|||||||
Total
|
|
$
|
5,023
|
|
|
$
|
672
|
|
|
$
|
7,035
|
|
|
$
|
12,730
|
|
|
$
|
46,816
|
|
|
$
|
1,328,480
|
|
|
$
|
1,611
|
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
(In thousands)
|
|
Business Activities
Loans |
|
Acquired Loans (1)
|
|
Total
|
|
Business Activities
Loans |
|
Acquired Loans (2)
|
|
Total
|
||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Single and multi-family
|
|
451
|
|
|
203
|
|
|
654
|
|
|
469
|
|
|
437
|
|
|
906
|
|
||||||
Other commercial real estate
|
|
4,566
|
|
|
2,047
|
|
|
6,613
|
|
|
4,212
|
|
|
765
|
|
|
4,977
|
|
||||||
Total
|
|
5,017
|
|
|
2,250
|
|
|
7,267
|
|
|
4,681
|
|
|
1,202
|
|
|
5,883
|
|
||||||
Commercial and industrial loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total
|
|
5,895
|
|
|
1,333
|
|
|
7,228
|
|
|
6,285
|
|
|
1,155
|
|
|
7,440
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgages:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
1-4 family
|
|
$
|
1,666
|
|
|
$
|
1,217
|
|
|
$
|
2,883
|
|
|
$
|
2,223
|
|
|
$
|
1,572
|
|
|
$
|
3,795
|
|
Construction
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
1,666
|
|
|
1,217
|
|
|
2,883
|
|
|
2,223
|
|
|
1,572
|
|
|
3,795
|
|
||||||
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Home equity
|
|
1,627
|
|
|
1,965
|
|
|
3,592
|
|
|
2,675
|
|
|
517
|
|
|
3,192
|
|
||||||
Auto and other
|
|
1,454
|
|
|
392
|
|
|
1,846
|
|
|
952
|
|
|
895
|
|
|
1,847
|
|
||||||
Total
|
|
3,081
|
|
|
2,357
|
|
|
5,438
|
|
|
3,627
|
|
|
1,412
|
|
|
5,039
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total non-accrual loans
|
|
$
|
15,659
|
|
|
$
|
7,157
|
|
|
$
|
22,816
|
|
|
$
|
16,816
|
|
|
$
|
5,341
|
|
|
$
|
22,157
|
|
(In thousands)
2017 |
|
Commercial
real estate |
|
Commercial
and industrial |
|
Residential
mortgages |
|
Consumer
|
|
Total
|
||||||||||
Loans receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance at end of year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Individually evaluated for impairment
|
|
$
|
33,732
|
|
|
$
|
5,761
|
|
|
$
|
3,872
|
|
|
$
|
—
|
|
|
$
|
43,365
|
|
Collectively evaluated
|
|
2,183,975
|
|
|
1,176,808
|
|
|
1,809,329
|
|
|
898,721
|
|
|
6,068,833
|
|
|||||
Total
|
|
$
|
2,217,707
|
|
|
$
|
1,182,569
|
|
|
$
|
1,813,201
|
|
|
$
|
898,721
|
|
|
$
|
6,112,198
|
|
(In thousands)
2016 |
|
Commercial
real estate |
|
Commercial
and industrial |
|
Residential
mortgages |
|
Consumer
|
|
Total
|
||||||||||
Loans receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance at end of year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Individually evaluated for impairment
|
|
$
|
25,549
|
|
|
$
|
5,705
|
|
|
$
|
2,775
|
|
|
$
|
2,703
|
|
|
$
|
36,732
|
|
Collectively evaluated
|
|
1,900,795
|
|
|
902,397
|
|
|
1,592,197
|
|
|
789,186
|
|
|
5,184,575
|
|
|||||
Total
|
|
$
|
1,926,344
|
|
|
$
|
908,102
|
|
|
$
|
1,594,972
|
|
|
$
|
791,889
|
|
|
$
|
5,221,307
|
|
(In thousands)
2017 |
|
Commercial
real estate |
|
Commercial
and industrial |
|
Residential
mortgages |
|
Consumer
|
|
Total
|
||||||||||
Loans receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance at end of year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Individually evaluated for impairment
|
|
$
|
4,244
|
|
|
$
|
421
|
|
|
$
|
2,617
|
|
|
$
|
27
|
|
|
$
|
7,309
|
|
Purchased credit-impaired loans
|
|
53,302
|
|
|
34,629
|
|
|
6,974
|
|
|
2,439
|
|
|
97,344
|
|
|||||
Collectively evaluated
|
|
989,489
|
|
|
586,320
|
|
|
280,015
|
|
|
226,663
|
|
|
2,082,487
|
|
|||||
Total
|
|
$
|
1,047,035
|
|
|
$
|
621,370
|
|
|
$
|
289,606
|
|
|
$
|
229,129
|
|
|
$
|
2,187,140
|
|
(In thousands)
2016 |
|
Commercial
real estate |
|
Commercial
and industrial |
|
Residential
mortgages |
|
Consumer
|
|
Total
|
||||||||||
Loans receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance at end of year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Individually evaluated for impairment
|
|
$
|
4,256
|
|
|
$
|
635
|
|
|
$
|
308
|
|
|
$
|
406
|
|
|
$
|
5,605
|
|
Purchased credit-impaired loans
|
|
34,820
|
|
|
3,369
|
|
|
7,283
|
|
|
1,344
|
|
|
46,816
|
|
|||||
Collectively evaluated
|
|
651,018
|
|
|
149,932
|
|
|
290,568
|
|
|
184,541
|
|
|
1,276,059
|
|
|||||
Total
|
|
$
|
690,094
|
|
|
$
|
153,936
|
|
|
$
|
298,159
|
|
|
$
|
186,291
|
|
|
$
|
1,328,480
|
|
|
|
At December 31, 2017
|
||||||||||
(In thousands)
|
|
Recorded Investment (1)
|
|
Unpaid Principal
Balance (2) |
|
Related Allowance
|
||||||
With no related allowance:
|
|
|
|
|
|
|
|
|
|
|||
Commercial real estate - construction
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commercial real estate - single and multifamily
|
|
1,077
|
|
|
3,607
|
|
|
—
|
|
|||
Other commercial real estate
|
|
18,285
|
|
|
18,611
|
|
|
—
|
|
|||
Other commercial and industrial loans
|
|
2,060
|
|
|
2,629
|
|
|
—
|
|
|||
Residential mortgages - 1-4 family
|
|
660
|
|
|
1,075
|
|
|
—
|
|
|||
Consumer - home equity
|
|
867
|
|
|
1,504
|
|
|
—
|
|
|||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial real estate - construction
|
|
$
|
159
|
|
|
$
|
159
|
|
|
$
|
1
|
|
Commercial real estate - single and multifamily
|
|
159
|
|
|
171
|
|
|
1
|
|
|||
Other commercial real estate
|
|
14,321
|
|
|
15,235
|
|
|
227
|
|
|||
Other commercial and industrial loans
|
|
3,716
|
|
|
4,249
|
|
|
66
|
|
|||
Residential mortgages - 1-4 family
|
|
1,344
|
|
|
1,446
|
|
|
130
|
|
|||
Consumer - home equity
|
|
1,014
|
|
|
999
|
|
|
34
|
|
|||
Consumer - other
|
|
17
|
|
|
17
|
|
|
1
|
|
|||
|
|
|
|
|
|
|
||||||
Total
|
|
|
|
|
|
|
|
|
|
|||
Commercial real estate
|
|
$
|
34,001
|
|
|
$
|
37,783
|
|
|
$
|
229
|
|
Commercial and industrial
|
|
5,776
|
|
|
6,878
|
|
|
66
|
|
|||
Residential mortgages
|
|
2,004
|
|
|
2,521
|
|
|
130
|
|
|||
Consumer
|
|
1,898
|
|
|
2,520
|
|
|
35
|
|
|||
Total impaired loans
|
|
$
|
43,679
|
|
|
$
|
49,702
|
|
|
$
|
460
|
|
|
|
At December 31, 2016
|
||||||||||
(In thousands)
|
|
Recorded Investment (1)
|
|
Unpaid Principal
Balance (2) |
|
Related Allowance
|
||||||
With no related allowance:
|
|
|
|
|
|
|
|
|
|
|||
Other commercial real estate
|
|
$
|
18,905
|
|
|
$
|
18,905
|
|
|
$
|
—
|
|
Other commercial and industrial loans
|
|
382
|
|
|
382
|
|
|
—
|
|
|||
Residential mortgages - 1-4 family
|
|
2,101
|
|
|
2,101
|
|
|
—
|
|
|||
Consumer - home equity
|
|
1,605
|
|
|
1,605
|
|
|
—
|
|
|||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial real estate - single and multifamily
|
|
$
|
179
|
|
|
$
|
181
|
|
|
$
|
2
|
|
Other commercial real estate
|
|
6,306
|
|
|
6,462
|
|
|
156
|
|
|||
Other commercial and industrial loans
|
|
5,060
|
|
|
5,324
|
|
|
264
|
|
|||
Residential mortgages - 1-4 family
|
|
538
|
|
|
674
|
|
|
136
|
|
|||
Consumer - home equity
|
|
942
|
|
|
1,098
|
|
|
156
|
|
|||
Total
|
|
|
|
|
|
|
|
|
|
|||
Commercial real estate
|
|
$
|
25,390
|
|
|
$
|
25,548
|
|
|
$
|
158
|
|
Commercial and industrial
|
|
5,442
|
|
|
5,706
|
|
|
264
|
|
|||
Residential mortgages
|
|
2,639
|
|
|
2,775
|
|
|
136
|
|
|||
Consumer
|
|
2,547
|
|
|
2,703
|
|
|
156
|
|
|||
Total impaired loans
|
|
$
|
36,018
|
|
|
$
|
36,732
|
|
|
$
|
714
|
|
|
|
At December 31, 2017
|
||||||||||
(In thousands)
|
|
Recorded Investment (1)
|
|
Unpaid Principal
Balance (2) |
|
Related Allowance
|
||||||
With no related allowance:
|
|
|
|
|
|
|
|
|
|
|||
Commercial real estate - single and multifamily
|
|
$
|
204
|
|
|
$
|
290
|
|
|
$
|
—
|
|
Other commercial real estate loans
|
|
1,123
|
|
|
2,794
|
|
|
—
|
|
|||
Other commercial and industrial loans
|
|
255
|
|
|
310
|
|
|
—
|
|
|||
Residential mortgages - 1-4 family
|
|
658
|
|
|
671
|
|
|
—
|
|
|||
Consumer - home equity
|
|
1,374
|
|
|
1,654
|
|
|
—
|
|
|||
Consumer - other
|
|
27
|
|
|
27
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial real estate - single and multifamily
|
|
$
|
887
|
|
|
$
|
880
|
|
|
$
|
18
|
|
Other commercial real estate loans
|
|
2,043
|
|
|
1,661
|
|
|
38
|
|
|||
Other commercial and industrial loans
|
|
165
|
|
|
166
|
|
|
1
|
|
|||
Residential mortgages - 1-4 family
|
|
166
|
|
|
185
|
|
|
9
|
|
|||
Consumer - home equity
|
|
433
|
|
|
540
|
|
|
45
|
|
|||
|
|
|
|
|
|
|
||||||
Total
|
|
|
|
|
|
|
|
|
|
|||
Commercial real estate
|
|
$
|
4,257
|
|
|
$
|
5,625
|
|
|
$
|
56
|
|
Commercial and industrial
|
|
420
|
|
|
476
|
|
|
1
|
|
|||
Residential mortgages
|
|
824
|
|
|
856
|
|
|
9
|
|
|||
Consumer
|
|
1,834
|
|
|
2,221
|
|
|
45
|
|
|||
Total impaired loans
|
|
$
|
7,335
|
|
|
$
|
9,178
|
|
|
$
|
111
|
|
|
|
December 31, 2016
|
||||||||||
(In thousands)
|
|
Recorded Investment (1)
|
|
Unpaid Principal
Balance (2) |
|
Related Allowance
|
||||||
With no related allowance:
|
|
|
|
|
|
|
|
|
|
|||
Other commercial real estate loans
|
|
$
|
547
|
|
|
$
|
547
|
|
|
$
|
—
|
|
Residential mortgages - 1-4 family
|
|
208
|
|
|
208
|
|
|
—
|
|
|||
Consumer - home equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer - other
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial real estate - single and multifamily
|
|
$
|
1,250
|
|
|
$
|
1,358
|
|
|
$
|
108
|
|
Other commercial real estate loans
|
|
2,209
|
|
|
2,351
|
|
|
142
|
|
|||
Other Commercial and industrial loans
|
|
576
|
|
|
635
|
|
|
59
|
|
|||
Residential mortgages - 1-4 family
|
|
89
|
|
|
100
|
|
|
11
|
|
|||
Consumer - home equity
|
|
292
|
|
|
406
|
|
|
114
|
|
|||
|
|
|
|
|
|
|
||||||
Total
|
|
|
|
|
|
|
|
|
|
|||
Commercial real estate
|
|
$
|
4,006
|
|
|
$
|
4,256
|
|
|
$
|
250
|
|
Commercial and industrial
|
|
576
|
|
|
635
|
|
|
59
|
|
|||
Residential mortgages
|
|
297
|
|
|
308
|
|
|
11
|
|
|||
Consumer
|
|
292
|
|
|
406
|
|
|
114
|
|
|||
Total impaired loans
|
|
$
|
5,171
|
|
|
$
|
5,605
|
|
|
$
|
434
|
|
|
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||
(in thousands)
|
|
Average Recorded
Investment |
|
Cash Basis Interest
Income Recognized |
|
Average Recorded
Investment |
|
Cash Basis Interest
Income Recognized |
|
Average Recorded
Investment |
|
Cash Basis Interest
Income Recognized |
||||||||||||
With no related allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate - construction
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,245
|
|
|
$
|
92
|
|
Commercial real estate - single and multifamily
|
|
341
|
|
|
214
|
|
|
36
|
|
|
1
|
|
|
60
|
|
|
—
|
|
||||||
Other commercial real estate
|
|
20,867
|
|
|
1,123
|
|
|
6,463
|
|
|
1,155
|
|
|
12,487
|
|
|
302
|
|
||||||
Other commercial and industrial
|
|
4,437
|
|
|
265
|
|
|
3,349
|
|
|
131
|
|
|
3,870
|
|
|
177
|
|
||||||
Residential mortgages - 1-4 family
|
|
1,128
|
|
|
31
|
|
|
2,403
|
|
|
91
|
|
|
1,353
|
|
|
38
|
|
||||||
Consumer-home equity
|
|
1,291
|
|
|
30
|
|
|
612
|
|
|
5
|
|
|
442
|
|
|
13
|
|
||||||
Consumer-other
|
|
72
|
|
|
3
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial mortgages - construction
|
|
$
|
41
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commercial real estate - single and multifamily
|
|
169
|
|
|
12
|
|
|
15
|
|
|
6
|
|
|
—
|
|
|
—
|
|
||||||
Other commercial real estate
|
|
11,372
|
|
|
520
|
|
|
7,576
|
|
|
349
|
|
|
3,214
|
|
|
132
|
|
||||||
Other commercial and industrial
|
|
3,251
|
|
|
267
|
|
|
2,002
|
|
|
225
|
|
|
810
|
|
|
37
|
|
||||||
Residential mortgages - 1-4 family
|
|
1,289
|
|
|
59
|
|
|
682
|
|
|
26
|
|
|
1,704
|
|
|
72
|
|
||||||
Consumer-home equity
|
|
1,007
|
|
|
29
|
|
|
999
|
|
|
35
|
|
|
83
|
|
|
—
|
|
||||||
Consumer - other
|
|
4
|
|
|
1
|
|
|
103
|
|
|
4
|
|
|
112
|
|
|
4
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
|
$
|
32,790
|
|
|
$
|
1,872
|
|
|
$
|
14,090
|
|
|
$
|
1,511
|
|
|
$
|
18,006
|
|
|
$
|
526
|
|
Commercial and industrial
|
|
7,688
|
|
|
532
|
|
|
5,351
|
|
|
356
|
|
|
4,680
|
|
|
214
|
|
||||||
Residential mortgages
|
|
2,417
|
|
|
90
|
|
|
3,085
|
|
|
117
|
|
|
3,057
|
|
|
110
|
|
||||||
Consumer loans
|
|
2,374
|
|
|
63
|
|
|
1,716
|
|
|
44
|
|
|
637
|
|
|
17
|
|
||||||
Total impaired loans
|
|
$
|
45,269
|
|
|
$
|
2,557
|
|
|
$
|
24,242
|
|
|
$
|
2,028
|
|
|
$
|
26,380
|
|
|
$
|
867
|
|
|
|
December 31, 2017
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||
(in thousands)
|
|
Average Recorded
Investment |
|
Cash Basis Interest
Income Recognized |
|
Average Recorded
Investment |
|
Cash Basis Interest
Income Recognized |
|
Average Recorded
Investment |
|
Cash Basis Interest
Income Recognized |
||||||||||||
With no related allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate - construction
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
445
|
|
|
$
|
60
|
|
Commercial real estate - single and multifamily
|
|
342
|
|
|
82
|
|
|
—
|
|
|
—
|
|
|
2,014
|
|
|
57
|
|
||||||
Other commercial real estate
|
|
487
|
|
|
239
|
|
|
521
|
|
|
20
|
|
|
1,721
|
|
|
37
|
|
||||||
Other commercial and industrial
|
|
581
|
|
|
43
|
|
|
492
|
|
|
9
|
|
|
—
|
|
|
—
|
|
||||||
Residential mortgages - 1-4 family
|
|
390
|
|
|
28
|
|
|
293
|
|
|
12
|
|
|
463
|
|
|
6
|
|
||||||
Consumer - home equity
|
|
773
|
|
|
22
|
|
|
—
|
|
|
—
|
|
|
152
|
|
|
5
|
|
||||||
Consumer - other
|
|
7
|
|
|
1
|
|
|
105
|
|
|
1
|
|
|
59
|
|
|
5
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate - construction
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commercial real estate - single and multifamily
|
|
903
|
|
|
47
|
|
|
1,064
|
|
|
115
|
|
|
623
|
|
|
33
|
|
||||||
Other commercial real estate
|
|
1,719
|
|
|
91
|
|
|
2,618
|
|
|
165
|
|
|
1,384
|
|
|
96
|
|
||||||
Other commercial and industrial
|
|
47
|
|
|
13
|
|
|
369
|
|
|
17
|
|
|
31
|
|
|
3
|
|
||||||
Residential mortgages - 1-4 family
|
|
173
|
|
|
9
|
|
|
214
|
|
|
25
|
|
|
304
|
|
|
9
|
|
||||||
Consumer - home equity
|
|
400
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
195
|
|
|
7
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
|
$
|
3,451
|
|
|
$
|
459
|
|
|
$
|
4,203
|
|
|
$
|
300
|
|
|
$
|
6,187
|
|
|
$
|
283
|
|
Commercial and industrial
|
|
628
|
|
|
56
|
|
|
861
|
|
|
26
|
|
|
31
|
|
|
3
|
|
||||||
Residential mortgages
|
|
563
|
|
|
37
|
|
|
507
|
|
|
37
|
|
|
767
|
|
|
15
|
|
||||||
Consumer loans
|
|
1,180
|
|
|
44
|
|
|
105
|
|
|
1
|
|
|
406
|
|
|
17
|
|
||||||
Total impaired loans
|
|
$
|
5,822
|
|
|
$
|
596
|
|
|
$
|
5,676
|
|
|
$
|
364
|
|
|
$
|
7,391
|
|
|
$
|
318
|
|
|
|
Modifications by Class
For the twelve months ending December 31, 2017 |
|||||||||
|
|
Number of
Modifications |
|
Pre-Modification
Outstanding Recorded Investment (In thousands) |
|
Post-Modification
Outstanding Recorded Investment |
|||||
Troubled Debt Restructurings
|
|
|
|
|
|
|
|
|
|
||
Commercial - Single and multifamily
|
|
1
|
|
|
$
|
235
|
|
|
$
|
235
|
|
Commercial - Other
|
|
15
|
|
|
13,445
|
|
|
11,718
|
|
||
Commercial and industrial - Other
|
|
12
|
|
|
3,507
|
|
|
3,507
|
|
||
Residential - 1-4 Family
|
|
4
|
|
|
331
|
|
|
314
|
|
||
Consumer - Home Equity
|
|
3
|
|
|
122
|
|
|
122
|
|
||
|
|
35
|
|
|
$
|
17,640
|
|
|
$
|
15,896
|
|
|
|
Modifications by Class
For the twelve months ending December 31, 2016 |
|||||||||
|
|
Number of
Modifications |
|
Pre-Modification
Outstanding Recorded Investment (In thousands) |
|
Post-Modification
Outstanding Recorded Investment |
|||||
Troubled Debt Restructurings
|
|
|
|
|
|
|
|
|
|
||
Commercial - Single and multifamily
|
|
5
|
|
|
$
|
437
|
|
|
$
|
437
|
|
Commercial - Other
|
|
5
|
|
|
16,651
|
|
|
16,651
|
|
||
Commercial and industrial - Other
|
|
4
|
|
|
555
|
|
|
555
|
|
||
Residential - 1-4 Family
|
|
2
|
|
|
5
|
|
|
5
|
|
||
Consumer - Home Equity
|
|
1
|
|
|
117
|
|
|
117
|
|
||
|
|
17
|
|
|
$
|
17,765
|
|
|
$
|
17,765
|
|
|
|
Modifications by Class
For the twelve months ending December 31, 2015 |
|||||||||
|
|
Number of
Modifications |
|
Pre-Modification
Outstanding Recorded Investment (In thousands) |
|
Post-Modification
Outstanding Recorded Investment |
|||||
Troubled Debt Restructurings
|
|
|
|
|
|
|
|
|
|
||
Commercial - Construction
|
|
1
|
|
|
$
|
123
|
|
|
$
|
123
|
|
Commercial - Single and multifamily
|
|
2
|
|
|
307
|
|
|
307
|
|
||
Commercial - Other
|
|
4
|
|
|
8,577
|
|
|
7,274
|
|
||
Commercial and industrial - Other
|
|
6
|
|
|
9,041
|
|
|
8,904
|
|
||
Consumer - Other
|
|
1
|
|
|
999
|
|
|
999
|
|
||
|
|
14
|
|
|
$
|
19,047
|
|
|
$
|
17,607
|
|
|
|
Modifications that subsequently defaulted
for the twelve months ending December 31, 2017
|
|||||
|
|
Number of Contracts
|
|
Recorded Investment
|
|||
Troubled Debt Restructurings
|
|
|
|
|
|
|
|
Commercial - Single and multifamily
|
|
—
|
|
|
$
|
—
|
|
Commercial - Other
|
|
1
|
|
|
113
|
|
|
Commercial and industrial - Other
|
|
2
|
|
|
492
|
|
|
Residential - 1-4 Family
|
|
—
|
|
|
—
|
|
|
|
|
3
|
|
|
$
|
605
|
|
|
|
Modifications that subsequently defaulted
for the twelve months ending December 31, 2015
|
|||||
|
|
Number of Contracts
|
|
Recorded Investment
|
|||
Troubled Debt Restructurings
|
|
|
|
|
|
|
|
Commercial - Single and multifamily
|
|
1
|
|
|
$
|
—
|
|
Commercial - Other
|
|
1
|
|
|
373
|
|
|
Commercial and industrial - Other
|
|
4
|
|
|
6,579
|
|
|
Residential - 1-4 Family
|
|
2
|
|
|
169
|
|
|
|
|
8
|
|
|
$
|
7,121
|
|
(In thousands)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Balance at beginning of year
|
|
$
|
33,829
|
|
|
$
|
22,048
|
|
|
$
|
16,714
|
|
Principal payments
|
|
(3,213
|
)
|
|
(5,870
|
)
|
|
(5,460
|
)
|
|||
TDR status change (1)
|
|
—
|
|
|
2,235
|
|
|
—
|
|
|||
Other reductions (2)
|
|
(4,522
|
)
|
|
(2,349
|
)
|
|
(3,160
|
)
|
|||
Newly identified TDRs
|
|
15,896
|
|
|
17,765
|
|
|
13,954
|
|
|||
Balance at end of year
|
|
$
|
41,990
|
|
|
$
|
33,829
|
|
|
$
|
22,048
|
|
(1)
|
TDR status change classification represents TDR loans with a specified interest rate equal to or greater than the rate that the Company was willing to accept at the time of the restructuring for a new loan with comparable risk and the loan was on current payment status and not impaired based on the terms specified by the restructuring agreement.
|
(In thousands)
2017 |
|
Commercial
real estate |
|
Commercial
and industrial |
|
Residential
mortgages |
|
Consumer
|
|
Total
|
||||||||||
Balance at beginning of year
|
|
$
|
16,498
|
|
|
$
|
9,447
|
|
|
$
|
7,805
|
|
|
$
|
5,479
|
|
|
$
|
39,229
|
|
Charged-off loans
|
|
3,875
|
|
|
3,373
|
|
|
806
|
|
|
3,470
|
|
|
11,524
|
|
|||||
Recoveries on charged-off loans
|
|
170
|
|
|
179
|
|
|
270
|
|
|
270
|
|
|
889
|
|
|||||
Provision for loan losses
|
|
4,050
|
|
|
7,597
|
|
|
2,151
|
|
|
3,528
|
|
|
17,326
|
|
|||||
Balance at end of year
|
|
$
|
16,843
|
|
|
$
|
13,850
|
|
|
$
|
9,420
|
|
|
$
|
5,807
|
|
|
$
|
45,920
|
|
Individually evaluated for impairment
|
|
229
|
|
|
66
|
|
|
130
|
|
|
35
|
|
|
460
|
|
|||||
Collectively evaluated
|
|
16,614
|
|
|
13,784
|
|
|
9,290
|
|
|
5,772
|
|
|
45,460
|
|
|||||
Total
|
|
$
|
16,843
|
|
|
$
|
13,850
|
|
|
$
|
9,420
|
|
|
$
|
5,807
|
|
|
$
|
45,920
|
|
(In thousands)
2016 |
|
Commercial real estate
|
|
Commercial
and industrial |
|
Residential
mortgages |
|
Consumer
|
|
Total
|
||||||||||
Balance at beginning of year
|
|
$
|
14,591
|
|
|
$
|
7,385
|
|
|
$
|
7,613
|
|
|
$
|
4,985
|
|
|
$
|
34,574
|
|
Charged-off loans
|
|
2,127
|
|
|
4,620
|
|
|
2,036
|
|
|
1,722
|
|
|
10,505
|
|
|||||
Recoveries on charged-off loans
|
|
243
|
|
|
123
|
|
|
159
|
|
|
267
|
|
|
792
|
|
|||||
Provision for loan losses
|
|
3,791
|
|
|
6,559
|
|
|
2,069
|
|
|
1,949
|
|
|
14,368
|
|
|||||
Balance at end of year
|
|
$
|
16,498
|
|
|
$
|
9,447
|
|
|
$
|
7,805
|
|
|
$
|
5,479
|
|
|
$
|
39,229
|
|
Individually evaluated for impairment
|
|
158
|
|
|
264
|
|
|
136
|
|
|
156
|
|
|
714
|
|
|||||
Collectively evaluated
|
|
16,340
|
|
|
9,183
|
|
|
7,669
|
|
|
5,323
|
|
|
38,515
|
|
|||||
Total
|
|
$
|
16,498
|
|
|
$
|
9,447
|
|
|
$
|
7,805
|
|
|
$
|
5,479
|
|
|
$
|
39,229
|
|
(In thousands)
2015 |
|
Commercial
real estate |
|
Commercial
and industrial |
|
Residential
mortgages |
|
Consumer
|
|
Total
|
||||||||||
Balance at beginning of year
|
|
$
|
14,740
|
|
|
$
|
5,246
|
|
|
$
|
6,864
|
|
|
$
|
5,945
|
|
|
$
|
32,795
|
|
Charged-off loans
|
|
6,865
|
|
|
2,358
|
|
|
1,215
|
|
|
1,183
|
|
|
11,621
|
|
|||||
Recoveries on charged-off loans
|
|
164
|
|
|
169
|
|
|
141
|
|
|
285
|
|
|
759
|
|
|||||
Provision for loan losses
|
|
6,552
|
|
|
4,328
|
|
|
1,823
|
|
|
(62
|
)
|
|
12,641
|
|
|||||
Balance at end of year
|
|
$
|
14,591
|
|
|
$
|
7,385
|
|
|
$
|
7,613
|
|
|
$
|
4,985
|
|
|
$
|
34,574
|
|
Individually evaluated for impairment
|
|
149
|
|
|
21
|
|
|
153
|
|
|
103
|
|
|
426
|
|
|||||
Collectively evaluated
|
|
14,442
|
|
|
7,364
|
|
|
7,460
|
|
|
4,882
|
|
|
34,148
|
|
|||||
Total
|
|
$
|
14,591
|
|
|
$
|
7,385
|
|
|
$
|
7,613
|
|
|
$
|
4,985
|
|
|
$
|
34,574
|
|
(In thousands)
2017 |
|
Commercial
real estate |
|
Commercial
and industrial |
|
Residential
mortgages |
|
Consumer
|
|
Total
|
||||||||||
Balance at beginning of year
|
|
$
|
2,303
|
|
|
$
|
1,164
|
|
|
$
|
766
|
|
|
$
|
536
|
|
|
$
|
4,769
|
|
Charged-off loans
|
|
771
|
|
|
844
|
|
|
797
|
|
|
648
|
|
|
3,060
|
|
|||||
Recoveries on charged-off loans
|
|
65
|
|
|
245
|
|
|
43
|
|
|
153
|
|
|
506
|
|
|||||
Provision for loan losses
|
|
2,259
|
|
|
560
|
|
|
586
|
|
|
294
|
|
|
3,699
|
|
|||||
Balance at end of year
|
|
$
|
3,856
|
|
|
$
|
1,125
|
|
|
$
|
598
|
|
|
$
|
335
|
|
|
$
|
5,914
|
|
Individually evaluated for impairment
|
|
56
|
|
|
1
|
|
|
9
|
|
|
45
|
|
|
111
|
|
|||||
Collectively evaluated
|
|
3,800
|
|
|
1,124
|
|
|
589
|
|
|
290
|
|
|
5,803
|
|
|||||
Total
|
|
$
|
3,856
|
|
|
$
|
1,125
|
|
|
$
|
598
|
|
|
$
|
335
|
|
|
$
|
5,914
|
|
(In thousands)
2016 |
|
Commercial
real estate |
|
Commercial
and industrial |
|
Residential
mortgages |
|
Consumer
|
|
Total
|
||||||||||
Balance at beginning of year
|
|
$
|
1,903
|
|
|
$
|
1,330
|
|
|
$
|
976
|
|
|
$
|
525
|
|
|
$
|
4,734
|
|
Charged-off loans
|
|
977
|
|
|
1,095
|
|
|
829
|
|
|
620
|
|
|
3,521
|
|
|||||
Recoveries on charged-off loans
|
|
61
|
|
|
266
|
|
|
144
|
|
|
91
|
|
|
562
|
|
|||||
Provision for loan losses
|
|
1,316
|
|
|
663
|
|
|
475
|
|
|
540
|
|
|
2,994
|
|
|||||
Balance at end of year
|
|
$
|
2,303
|
|
|
$
|
1,164
|
|
|
$
|
766
|
|
|
$
|
536
|
|
|
$
|
4,769
|
|
Individually evaluated for impairment
|
|
250
|
|
|
59
|
|
|
11
|
|
|
114
|
|
|
434
|
|
|||||
Collectively evaluated
|
|
2,053
|
|
|
1,105
|
|
|
755
|
|
|
422
|
|
|
4,335
|
|
|||||
Total
|
|
$
|
2,303
|
|
|
$
|
1,164
|
|
|
$
|
766
|
|
|
$
|
536
|
|
|
$
|
4,769
|
|
(In thousands)
2015 |
|
Commercial
real estate |
|
Commercial
and industrial |
|
Residential
mortgages |
|
Consumer
|
|
Total
|
||||||||||
Balance at beginning of year
|
|
$
|
790
|
|
|
$
|
1,093
|
|
|
$
|
615
|
|
|
$
|
369
|
|
|
$
|
2,867
|
|
Charged-off loans
|
|
681
|
|
|
752
|
|
|
642
|
|
|
992
|
|
|
3,067
|
|
|||||
Recoveries on charged-off loans
|
|
418
|
|
|
289
|
|
|
64
|
|
|
78
|
|
|
849
|
|
|||||
Provision for loan losses
|
|
1,376
|
|
|
700
|
|
|
939
|
|
|
1,070
|
|
|
4,085
|
|
|||||
Balance at end of year
|
|
$
|
1,903
|
|
|
$
|
1,330
|
|
|
$
|
976
|
|
|
$
|
525
|
|
|
$
|
4,734
|
|
Individually evaluated for impairment
|
|
43
|
|
|
—
|
|
|
30
|
|
|
25
|
|
|
98
|
|
|||||
Purchased credit-impaired loans
|
|
42
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|||||
Collectively evaluated
|
|
1,818
|
|
|
1,330
|
|
|
946
|
|
|
500
|
|
|
4,594
|
|
|||||
Total
|
|
$
|
1,903
|
|
|
$
|
1,330
|
|
|
$
|
976
|
|
|
$
|
525
|
|
|
$
|
4,734
|
|
|
|
Construction
|
|
Single and multi-family
|
|
Real Estate
|
|
Total commercial real estate
|
||||||||||||||||||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||
Grade:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Pass
|
|
$
|
181,371
|
|
|
$
|
253,302
|
|
|
$
|
214,289
|
|
|
$
|
189,310
|
|
|
$
|
1,775,091
|
|
|
$
|
1,434,762
|
|
|
$
|
2,170,751
|
|
|
$
|
1,877,374
|
|
Special mention
|
|
—
|
|
|
—
|
|
|
504
|
|
|
334
|
|
|
12,999
|
|
|
5,827
|
|
|
13,503
|
|
|
6,161
|
|
||||||||
Substandard
|
|
—
|
|
|
—
|
|
|
2,290
|
|
|
2,175
|
|
|
31,163
|
|
|
40,598
|
|
|
33,453
|
|
|
42,773
|
|
||||||||
Doubtful
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
—
|
|
|
36
|
|
||||||||
Total
|
|
$
|
181,371
|
|
|
$
|
253,302
|
|
|
$
|
217,083
|
|
|
$
|
191,819
|
|
|
$
|
1,819,253
|
|
|
$
|
1,481,223
|
|
|
$
|
2,217,707
|
|
|
$
|
1,926,344
|
|
|
|
|
Total comm. and industrial
|
||||||
(In thousands)
|
|
|
2017
|
|
2016
|
||||
Grade:
|
|
|
|
|
|
|
|
||
Pass
|
|
|
$
|
1,156,240
|
|
|
$
|
890,974
|
|
Special mention
|
|
|
12,806
|
|
|
123
|
|
||
Substandard
|
|
|
11,123
|
|
|
13,825
|
|
||
Doubtful
|
|
|
2,400
|
|
|
3,180
|
|
||
Total
|
|
|
$
|
1,182,569
|
|
|
$
|
908,102
|
|
|
|
1-4 family
|
|
Construction
|
|
Total residential mortgages
|
||||||||||||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||
Grade:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pass
|
|
$
|
1,805,596
|
|
|
$
|
1,578,913
|
|
|
$
|
5,177
|
|
|
$
|
11,178
|
|
|
$
|
1,810,773
|
|
|
$
|
1,590,091
|
|
Special mention
|
|
242
|
|
|
701
|
|
|
—
|
|
|
—
|
|
|
242
|
|
|
701
|
|
||||||
Substandard
|
|
2,186
|
|
|
4,179
|
|
|
—
|
|
|
—
|
|
|
2,186
|
|
|
4,179
|
|
||||||
Total
|
|
$
|
1,808,024
|
|
|
$
|
1,583,793
|
|
|
$
|
5,177
|
|
|
$
|
11,178
|
|
|
$
|
1,813,201
|
|
|
$
|
1,594,971
|
|
|
|
Home equity
|
|
Auto and other
|
|
Total consumer
|
||||||||||||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||
Performing
|
|
$
|
293,327
|
|
|
$
|
310,846
|
|
|
$
|
602,313
|
|
|
$
|
477,416
|
|
|
$
|
895,640
|
|
|
$
|
788,262
|
|
Nonperforming
|
|
1,627
|
|
|
2,675
|
|
|
1,454
|
|
|
952
|
|
|
3,081
|
|
|
3,627
|
|
||||||
Total
|
|
$
|
294,954
|
|
|
$
|
313,521
|
|
|
$
|
603,767
|
|
|
$
|
478,368
|
|
|
$
|
898,721
|
|
|
$
|
791,889
|
|
|
|
Construction
|
|
Single and multi-family
|
|
Real Estate
|
|
Total commercial real estate
|
||||||||||||||||||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||
Grade:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Pass
|
|
$
|
76,611
|
|
|
$
|
33,461
|
|
|
$
|
203,624
|
|
|
$
|
119,414
|
|
|
$
|
684,846
|
|
|
$
|
496,562
|
|
|
$
|
965,081
|
|
|
$
|
649,437
|
|
Special mention
|
|
—
|
|
|
—
|
|
|
603
|
|
|
907
|
|
|
22,070
|
|
|
1,622
|
|
|
22,673
|
|
|
2,529
|
|
||||||||
Substandard
|
|
8,354
|
|
|
746
|
|
|
1,855
|
|
|
5,351
|
|
|
49,072
|
|
|
32,031
|
|
|
59,281
|
|
|
38,128
|
|
||||||||
Total
|
|
$
|
84,965
|
|
|
$
|
34,207
|
|
|
$
|
206,082
|
|
|
$
|
125,672
|
|
|
$
|
755,988
|
|
|
$
|
530,215
|
|
|
$
|
1,047,035
|
|
|
$
|
690,094
|
|
|
|
|
Total comm. and industrial
|
||||||
(In thousands)
|
|
|
2017
|
|
2016
|
||||
Grade:
|
|
|
|
|
|
|
|
||
Pass
|
|
|
$
|
606,922
|
|
|
$
|
147,102
|
|
Special mention
|
|
|
1,241
|
|
|
1,260
|
|
||
Substandard
|
|
|
13,207
|
|
|
5,574
|
|
||
Total
|
|
|
$
|
621,370
|
|
|
$
|
153,936
|
|
|
|
1-4 family
|
|
Construction
|
|
Total residential mortgages
|
||||||||||||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||
Grade:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Pass
|
|
$
|
281,160
|
|
|
$
|
294,983
|
|
|
$
|
233
|
|
|
$
|
804
|
|
|
$
|
281,393
|
|
|
$
|
295,787
|
|
Special mention
|
|
2,704
|
|
|
343
|
|
|
—
|
|
|
—
|
|
|
2,704
|
|
|
343
|
|
||||||
Substandard
|
|
5,509
|
|
|
2,029
|
|
|
—
|
|
|
—
|
|
|
5,509
|
|
|
2,029
|
|
||||||
Total
|
|
$
|
289,373
|
|
|
$
|
297,355
|
|
|
$
|
233
|
|
|
$
|
804
|
|
|
$
|
289,606
|
|
|
$
|
298,159
|
|
|
|
Home equity
|
|
Auto and other
|
|
Total consumer
|
||||||||||||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||
Performing
|
|
$
|
113,262
|
|
|
$
|
79,762
|
|
|
$
|
113,510
|
|
|
$
|
105,117
|
|
|
$
|
226,772
|
|
|
$
|
184,879
|
|
Nonperforming
|
|
1,965
|
|
|
517
|
|
|
392
|
|
|
895
|
|
|
2,357
|
|
|
1,412
|
|
||||||
Total
|
|
$
|
115,227
|
|
|
$
|
80,279
|
|
|
$
|
113,902
|
|
|
$
|
106,012
|
|
|
$
|
229,129
|
|
|
$
|
186,291
|
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
(In thousands)
|
|
Business
Activities Loans |
|
Acquired Loans
|
|
Total
|
|
Business
Activities Loans |
|
Acquired Loans
|
|
Total
|
||||||||||||
Non-Accrual
|
|
$
|
15,659
|
|
|
$
|
7,240
|
|
|
$
|
22,899
|
|
|
$
|
16,816
|
|
|
$
|
5,424
|
|
|
$
|
22,240
|
|
Substandard Accruing
|
|
36,846
|
|
|
73,412
|
|
|
110,258
|
|
|
51,125
|
|
|
44,177
|
|
|
95,302
|
|
||||||
Total Classified
|
|
52,505
|
|
|
80,652
|
|
|
133,157
|
|
|
67,941
|
|
|
49,601
|
|
|
117,542
|
|
||||||
Special Mention
|
|
28,387
|
|
|
26,802
|
|
|
55,189
|
|
|
7,479
|
|
|
4,323
|
|
|
11,802
|
|
||||||
Total Criticized
|
|
$
|
80,892
|
|
|
$
|
107,454
|
|
|
$
|
188,346
|
|
|
$
|
75,420
|
|
|
$
|
53,924
|
|
|
$
|
129,344
|
|
(In thousands)
|
|
2017
|
|
2016
|
|
Estimated Useful
Life |
||||
Land
|
|
$
|
14,177
|
|
|
$
|
10,563
|
|
|
N/A
|
Buildings and improvements
|
|
99,821
|
|
|
85,319
|
|
|
5 - 39 years
|
||
Furniture and equipment
|
|
49,600
|
|
|
42,693
|
|
|
3 - 7 years
|
||
Construction in process
|
|
5,177
|
|
|
4,084
|
|
|
|
||
Premises and equipment, gross
|
|
168,775
|
|
|
142,659
|
|
|
|
||
Accumulated depreciation and amortization
|
|
(59,423
|
)
|
|
(49,444
|
)
|
|
|
||
Premises and equipment, net
|
|
$
|
109,352
|
|
|
$
|
93,215
|
|
|
|
(In thousands)
|
|
2017
|
|
2016
|
||||
Balance, beginning of the period
|
|
$
|
403,106
|
|
|
$
|
323,943
|
|
Goodwill acquired and adjusted:
|
|
|
|
|
||||
Commerce Bank
|
|
116,181
|
|
|
—
|
|
||
44 Business Capital
|
|
—
|
|
|
15,892
|
|
||
Ronald N. Lazzaro, PC
|
|
—
|
|
|
5,492
|
|
||
First Choice Bank
|
|
—
|
|
|
58,036
|
|
||
Adjustments (1)
|
|
—
|
|
|
(257
|
)
|
||
Balance, end of the period
|
|
$
|
519,287
|
|
|
$
|
403,106
|
|
(1)
|
In 2016, goodwill related to the Hampden and Firestone acquisitions was adjusted since acquisition dates to reflect new information available during the one-year measurement period.
|
(In thousands)
|
|
Gross Intangible
Assets
|
|
Accumulated
Amortization
|
|
Net Intangible
Assets
|
||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|||
Non-maturity deposits (core deposit intangible)
|
|
$
|
66,923
|
|
|
$
|
(33,024
|
)
|
|
$
|
33,899
|
|
Insurance contracts
|
|
7,558
|
|
|
(7,526
|
)
|
|
32
|
|
|||
All other intangible assets
|
|
7,810
|
|
|
(3,445
|
)
|
|
4,365
|
|
|||
Total
|
|
$
|
82,291
|
|
|
$
|
(43,995
|
)
|
|
$
|
38,296
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|||
Non-maturity deposits (core deposit intangible)
|
|
$
|
44,523
|
|
|
$
|
(30,099
|
)
|
|
$
|
14,424
|
|
Insurance contracts
|
|
7,558
|
|
|
(7,504
|
)
|
|
54
|
|
|||
All other intangible assets
|
|
7,866
|
|
|
(2,899
|
)
|
|
4,967
|
|
|||
Total
|
|
$
|
59,947
|
|
|
$
|
(40,502
|
)
|
|
$
|
19,445
|
|
(In thousands)
|
|
2017
|
|
2016
|
||||
Capitalized servicing rights
|
|
$
|
16,361
|
|
|
$
|
11,524
|
|
Accrued interest receivable
|
|
33,739
|
|
|
26,113
|
|
||
Accrued federal and state tax receivable (1)
|
|
33,101
|
|
|
19,076
|
|
||
Derivative assets
|
|
19,308
|
|
|
21,617
|
|
||
Assets held for sale
|
|
1,392
|
|
|
—
|
|
||
Other
|
|
13,182
|
|
|
20,127
|
|
||
Total other assets
|
|
$
|
117,083
|
|
|
$
|
98,457
|
|
(1)
|
Accrued federal and state tax receivable as of December 31, 2017 includes
$4.3 million
of New York State refundable tax credits from investment in historical tax credit partnerships in New York State. This balance was
$5.9
million at year-end 2016.
|
(In thousands)
|
|
2017
|
|
2016
|
||||
Balance at beginning of year
|
|
$
|
11,524
|
|
|
$
|
5,187
|
|
Acquired from 44 Business Capital
|
|
—
|
|
|
3,489
|
|
||
Acquired from First Choice Bank (1)
|
|
—
|
|
|
696
|
|
||
Additions
|
|
7,604
|
|
|
4,116
|
|
||
Amortization
|
|
(2,446
|
)
|
|
(1,964
|
)
|
||
Change in fair value
|
|
(221
|
)
|
|
—
|
|
||
Allowance adjustment
|
|
(100
|
)
|
|
—
|
|
||
Balance at end of year
|
|
$
|
16,361
|
|
|
$
|
11,524
|
|
(1)
|
Amounts acquired from First Choice Bank are accounted for at fair value. The balance as of December 31, 2017 and December 31, 2016 were
$3.8 million
and
$0.8 million
, respectively.
|
(In thousands)
|
|
2017
|
|
2016
|
||||
Maturity date:
|
|
|
|
|
|
|
||
Within 1 year
|
|
$
|
1,790,056
|
|
|
$
|
1,316,973
|
|
Over 1 year to 2 years
|
|
546,381
|
|
|
582,764
|
|
||
Over 2 years to 3 years
|
|
268,897
|
|
|
142,160
|
|
||
Over 3 years to 4 years
|
|
161,314
|
|
|
150,388
|
|
||
Over 4 years to 5 years
|
|
121,400
|
|
|
137,845
|
|
||
Over 5 years
|
|
2,157
|
|
|
3,413
|
|
||
Total
|
|
$
|
2,890,205
|
|
|
$
|
2,333,543
|
|
Account balances:
|
|
|
|
|
|
|
||
Less than $100,000
|
|
$
|
733,785
|
|
|
$
|
656,055
|
|
$100,000 or more
|
|
2,156,420
|
|
|
1,677,488
|
|
||
Total
|
|
$
|
2,890,205
|
|
|
$
|
2,333,543
|
|
|
|
2017
|
|
2016
|
||||||||||
(in thousands, except rates)
|
|
Principal
|
|
Weighted
Average Rate |
|
Principal
|
|
Weighted
Average Rate |
||||||
Short-term borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Advances from the FHLBB
|
|
$
|
667,300
|
|
|
1.48
|
%
|
|
$
|
1,072,044
|
|
|
0.71
|
%
|
Other Borrowings
|
|
—
|
|
|
—
|
|
|
10,000
|
|
|
2.42
|
|
||
Total short-term borrowings:
|
|
667,300
|
|
|
1.48
|
|
|
1,082,044
|
|
|
0.72
|
|
||
Long-term borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Advances from the FHLBB
|
|
380,436
|
|
|
1.54
|
|
|
142,792
|
|
|
1.53
|
|
||
Subordinated notes
|
|
73,875
|
|
|
7.00
|
|
|
73,697
|
|
|
7.00
|
|
||
Junior subordinated notes
|
|
15,464
|
|
|
3.30
|
|
|
15,464
|
|
|
2.77
|
|
||
Total long-term borrowings:
|
|
469,775
|
|
|
2.46
|
|
|
231,953
|
|
|
3.35
|
|
||
Total
|
|
$
|
1,137,075
|
|
|
1.88
|
%
|
|
$
|
1,313,997
|
|
|
1.19
|
%
|
|
|
2017
|
|||||
(In thousands)
|
|
Amount
|
|
Weighted
Average Rate |
|||
Fixed rate advances maturing:
|
|
|
|
|
|
|
|
2018
|
|
$
|
836,115
|
|
|
1.43
|
%
|
2019
|
|
150,082
|
|
|
1.64
|
|
|
2020
|
|
54,101
|
|
|
2.04
|
|
|
2021
|
|
220
|
|
|
3.21
|
|
|
2022 and beyond
|
|
7,218
|
|
|
2.64
|
|
|
Total fixed rate advances
|
|
$
|
1,047,736
|
|
|
1.50
|
|
|
|
|
|
|
|||
Total FHLBB advances
|
|
$
|
1,047,736
|
|
|
1.50
|
%
|
|
|
December 31,
|
||||||
(In thousands)
|
|
2017
|
|
2016
|
||||
Derivative liabilities
|
|
$
|
15,838
|
|
|
$
|
24,420
|
|
Capital lease obligation
|
|
11,323
|
|
|
11,639
|
|
||
Asset purchase settlement payable
|
|
70,637
|
|
|
29,158
|
|
||
Employee benefits liability
|
|
27,093
|
|
|
17,972
|
|
||
Level lease liability
|
|
5,766
|
|
|
6,997
|
|
||
Accrued interest payable
|
|
6,813
|
|
|
4,394
|
|
||
Customer transaction clearing accounts
|
|
9,118
|
|
|
1,786
|
|
||
Other
|
|
41,294
|
|
|
36,789
|
|
||
Total other liabilities
|
|
$
|
187,882
|
|
|
$
|
133,155
|
|
|
|
December 31,
|
||||||
(In thousands)
|
|
2017
|
|
2016
|
||||
Change in projected benefit obligation:
|
|
|
|
|
|
|
||
Projected benefit obligation at beginning of year
|
|
$
|
6,126
|
|
|
$
|
6,585
|
|
Service Cost
|
|
66
|
|
|
76
|
|
||
Interest cost
|
|
237
|
|
|
267
|
|
||
Actuarial gain
|
|
309
|
|
|
(308
|
)
|
||
Benefits paid
|
|
(324
|
)
|
|
(318
|
)
|
||
Settlements
|
|
(61
|
)
|
|
(176
|
)
|
||
Projected benefit obligation at end of year
|
|
6,353
|
|
|
6,126
|
|
||
Accumulated benefit obligation
|
|
6,353
|
|
|
6,126
|
|
||
|
|
|
|
|
||||
Change in fair value of plan assets:
|
|
|
|
|
|
|
||
Fair value of plan assets at plan beginning of year
|
|
5,121
|
|
|
5,211
|
|
||
Actual return on plan assets
|
|
710
|
|
|
404
|
|
||
Benefits paid
|
|
(324
|
)
|
|
(318
|
)
|
||
Settlements
|
|
(61
|
)
|
|
(176
|
)
|
||
Fair value of plan assets at end of year
|
|
5,446
|
|
|
5,121
|
|
||
|
|
|
|
|
||||
Underfunded status
|
|
$
|
907
|
|
|
$
|
1,005
|
|
Amounts Recognized in Consolidated Balance Sheet
|
|
|
|
|
||||
Other Liabilities
|
|
$
|
907
|
|
|
$
|
1,005
|
|
|
|
December 31,
|
||||||
(In thousands)
|
|
2017
|
|
2016
|
||||
Service Cost
|
|
$
|
66
|
|
|
$
|
76
|
|
Interest Cost
|
|
237
|
|
|
267
|
|
||
Expected return on plan assets
|
|
(346
|
)
|
|
(361
|
)
|
||
Amortization of unrecognized actuarial loss
|
|
100
|
|
|
163
|
|
||
Net periodic pension costs
|
|
$
|
57
|
|
|
$
|
145
|
|
|
|
December 31,
|
||||||
(In thousands)
|
|
2017
|
|
2016
|
||||
Amortization of actuarial (loss)
|
|
$
|
(100
|
)
|
|
$
|
(163
|
)
|
Actuarial (gain) loss
|
|
(54
|
)
|
|
(351
|
)
|
||
Total recognized in accumulated other comprehensive income
|
|
(154
|
)
|
|
(514
|
)
|
||
Total recognized in net periodic pension cost recognized and other comprehensive income
|
|
$
|
(97
|
)
|
|
$
|
(369
|
)
|
|
|
December 31,
|
||||
|
|
2017
|
|
2016
|
||
Projected benefit obligation
|
|
|
|
|
|
|
Discount rate
|
|
3.510
|
%
|
|
3.980
|
%
|
Net periodic pension cost
|
|
|
|
|
|
|
Discount rate
|
|
3.980
|
%
|
|
4.170
|
%
|
Long term rate of return on plan assets
|
|
7.000
|
%
|
|
7.000
|
%
|
|
|
December 31, 2017
|
||||||||||
Asset Category (In thousands)
|
|
Total
|
|
Level 1
|
|
Level 2
|
||||||
Equity Mutual Funds:
|
|
|
|
|
|
|
|
|
||||
Large-Cap
|
|
$
|
1,820
|
|
|
$
|
—
|
|
|
$
|
1,820
|
|
Mid-Cap
|
|
439
|
|
|
—
|
|
|
439
|
|
|||
Small-Cap
|
|
438
|
|
|
—
|
|
|
438
|
|
|||
International
|
|
893
|
|
|
—
|
|
|
893
|
|
|||
Fixed Income Funds
|
|
|
|
|
|
|
||||||
Fixed Income - US Core
|
|
1,308
|
|
|
—
|
|
|
1,308
|
|
|||
Intermediate Duration
|
|
437
|
|
|
—
|
|
|
437
|
|
|||
Cash Equivalents - money market
|
|
111
|
|
|
29
|
|
|
82
|
|
|||
Total
|
|
$
|
5,446
|
|
|
$
|
29
|
|
|
$
|
5,417
|
|
|
|
December 31, 2016
|
||||||||||
Asset Category (In thousands)
|
|
Total
|
|
Level 1
|
|
Level 2
|
||||||
Equity Mutual Funds:
|
|
|
|
|
|
|
|
|
|
|||
Large-Cap
|
|
$
|
1,624
|
|
|
$
|
—
|
|
|
$
|
1,624
|
|
Mid-Cap
|
|
401
|
|
|
—
|
|
|
401
|
|
|||
Small-Cap
|
|
415
|
|
|
—
|
|
|
415
|
|
|||
International
|
|
757
|
|
|
—
|
|
|
757
|
|
|||
Fixed Income Funds
|
|
|
|
|
|
|
|
|
|
|||
Fixed Income - US Core
|
|
1,378
|
|
|
—
|
|
|
1,378
|
|
|||
Intermediate Duration
|
|
472
|
|
|
—
|
|
|
472
|
|
|||
Cash Equivalents - money market
|
|
74
|
|
|
30
|
|
|
44
|
|
|||
Total
|
|
$
|
5,121
|
|
|
$
|
30
|
|
|
$
|
5,091
|
|
Year
|
|
Payments (In thousands)
|
|
2018
|
|
343
|
|
2019
|
|
380
|
|
2020
|
|
372
|
|
2021
|
|
361
|
|
2022
|
|
386
|
|
2023 - 2027
|
|
1,792
|
|
|
|
December 31,
|
||||||
(In thousands)
|
|
2017
|
|
2016
|
||||
Change in accumulated postretirement benefit obligation:
|
|
|
|
|
|
|
||
Accumulated post-retirement benefit obligation at beginning of year
|
|
$
|
3,249
|
|
|
$
|
3,039
|
|
Service Cost
|
|
35
|
|
|
32
|
|
||
Interest cost
|
|
131
|
|
|
129
|
|
||
Participant contributions
|
|
46
|
|
|
47
|
|
||
Actuarial loss (gain)
|
|
326
|
|
|
130
|
|
||
Benefits paid
|
|
(94
|
)
|
|
(128
|
)
|
||
Accumulated post-retirement benefit obligation at end of year
|
|
$
|
3,693
|
|
|
$
|
3,249
|
|
|
|
|
|
|
||||
Change in plan assets:
|
|
|
|
|
|
|
||
Fair value of plan assets at beginning of year
|
|
$
|
—
|
|
|
$
|
—
|
|
Contributions by employer
|
|
48
|
|
|
81
|
|
||
Contributions by participant
|
|
46
|
|
|
47
|
|
||
Benefits paid
|
|
(94
|
)
|
|
(128
|
)
|
||
Fair value of plan assets at end of year
|
|
$
|
—
|
|
|
$
|
—
|
|
Amounts Recognized in Consolidated Balance Sheet
|
|
|
|
|
|
|
||
Other Liabilities
|
|
$
|
3,693
|
|
|
$
|
3,249
|
|
|
|
December 31,
|
||||||
(In thousands)
|
|
2017
|
|
2016
|
||||
Service cost
|
|
$
|
35
|
|
|
$
|
32
|
|
Interest costs
|
|
131
|
|
|
129
|
|
||
Amortization of net prior service credit
|
|
83
|
|
|
83
|
|
||
Amortization of net actuarial loss
|
|
—
|
|
|
—
|
|
||
Net periodic post-retirement costs
|
|
$
|
249
|
|
|
$
|
244
|
|
|
|
December 31,
|
||||||
(In thousands)
|
|
2017
|
|
2016
|
||||
Amortization of actuarial loss
|
|
$
|
—
|
|
|
$
|
—
|
|
Amortization of prior service credit
|
|
(83
|
)
|
|
(83
|
)
|
||
Net actuarial (gain) loss
|
|
199
|
|
|
(126
|
)
|
||
Total recognized in accumulated other comprehensive income
|
|
116
|
|
|
(209
|
)
|
||
Accrued post-retirement liability recognized
|
|
$
|
1,918
|
|
|
$
|
1,718
|
|
|
|
December 31,
|
||||||
(In thousands)
|
|
2017
|
|
2016
|
||||
Net prior service cost (credit)
|
|
$
|
1,576
|
|
|
$
|
1,659
|
|
Net actuarial (gain) loss
|
|
199
|
|
|
(126
|
)
|
||
Total recognized in accumulated other comprehensive income
|
|
$
|
1,775
|
|
|
$
|
1,533
|
|
Year
|
|
Payments (In thousands)
|
|
2018
|
|
103
|
|
2019
|
|
103
|
|
2020
|
|
102
|
|
2021
|
|
106
|
|
2022
|
|
109
|
|
2023 - 2027
|
|
548
|
|
(In thousands)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Current:
|
|
|
|
|
|
|
|
|
|
|||
Federal tax expense
|
|
$
|
11,686
|
|
|
$
|
6,758
|
|
|
$
|
4,696
|
|
State tax expense
|
|
1,112
|
|
|
1,101
|
|
|
(1,631
|
)
|
|||
Total current expense
|
|
12,798
|
|
|
7,859
|
|
|
3,065
|
|
|||
Deferred:
|
|
|
|
|
|
|
|
|
|
|||
Federal tax expense
|
|
29,824
|
|
|
9,438
|
|
|
2,023
|
|
|||
State tax expense
|
|
1,805
|
|
|
1,591
|
|
|
(24
|
)
|
|||
Total deferred tax expense (1)
|
|
31,629
|
|
|
11,029
|
|
|
1,999
|
|
|||
Change in valuation allowance
|
|
75
|
|
|
(104
|
)
|
|
—
|
|
|||
Total income tax expense
|
|
$
|
44,502
|
|
|
$
|
18,784
|
|
|
$
|
5,064
|
|
(1)
|
2017 Deferred tax expense of
$31.6 million
includes an
$18.1 million
charge to re-measure the net deferred tax asset at December 31, 2017 pursuant to the reduction in the corporate income tax rate from 35% to 21%, effective January 1, 2018, per the Tax Cuts and Jobs Act enacted on December 22, 2017.
|
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||
(In thousands, except rates)
|
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
|||||||||
Statutory tax rate
|
|
$
|
34,912
|
|
|
35.0
|
%
|
|
$
|
27,108
|
|
|
35.0
|
%
|
|
$
|
19,104
|
|
|
35.0
|
%
|
Increase (decrease) resulting from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
State taxes, net of federal tax benefit
|
|
2,232
|
|
|
2.2
|
|
|
1,675
|
|
|
2.2
|
|
|
(974
|
)
|
|
(1.8
|
)
|
|||
Tax exempt income - investments, net
|
|
(5,395
|
)
|
|
(5.4
|
)
|
|
(3,849
|
)
|
|
(5.0
|
)
|
|
(3,463
|
)
|
|
(6.3
|
)
|
|||
Bank-owned life insurance
|
|
(1,556
|
)
|
|
(1.6
|
)
|
|
(1,364
|
)
|
|
(1.8
|
)
|
|
(1,284
|
)
|
|
(2.4
|
)
|
|||
Non-deductible merger costs
|
|
368
|
|
|
0.4
|
|
|
542
|
|
|
0.7
|
|
|
422
|
|
|
0.8
|
|
|||
Non-deductible goodwill on disposal operations sale
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
313
|
|
|
0.6
|
|
|||
Tax credits, net of basis reduction
|
|
(4,656
|
)
|
|
(4.7
|
)
|
|
(6,225
|
)
|
|
(8.0
|
)
|
|
(8,308
|
)
|
|
(15.2
|
)
|
|||
Change in valuation allowance
|
|
75
|
|
|
0.1
|
|
|
125
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|||
Impact of federal tax reform enactment
|
|
18,145
|
|
|
18.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other, net
|
|
377
|
|
|
0.4
|
|
|
772
|
|
|
1.0
|
|
|
(746
|
)
|
|
(1.4
|
)
|
|||
Effective tax rate
|
|
$
|
44,502
|
|
|
44.6
|
%
|
|
$
|
18,784
|
|
|
24.3
|
%
|
|
$
|
5,064
|
|
|
9.3
|
%
|
(In thousands)
|
|
2017
|
|
2016
|
||||
Deferred tax assets:
|
|
|
|
|
|
|
||
Allowance for loan losses
|
|
$
|
14,578
|
|
|
$
|
17,747
|
|
Tax credit carryforwards
|
|
4,100
|
|
|
4,100
|
|
||
Unrealized capital loss on tax credit investments
|
|
6,502
|
|
|
6,999
|
|
||
Employee benefit plans
|
|
4,983
|
|
|
7,813
|
|
||
Purchase accounting adjustments
|
|
37,843
|
|
|
23,520
|
|
||
Net operating loss carryforwards
|
|
1,374
|
|
|
2,643
|
|
||
Other
|
|
2,332
|
|
|
4,997
|
|
||
Deferred tax assets, net before valuation allowances
|
|
71,712
|
|
|
67,819
|
|
||
Valuation allowance
|
|
(200
|
)
|
|
(125
|
)
|
||
Deferred tax assets, net of valuation allowances
|
|
$
|
71,512
|
|
|
$
|
67,694
|
|
|
|
|
|
|
||||
Deferred tax liabilities:
|
|
|
|
|
|
|
||
Net unrealized gain on swaps, securities available for sale, and pension in OCI
|
|
$
|
(1,888
|
)
|
|
$
|
(5,884
|
)
|
Premises and equipment
|
|
(1,126
|
)
|
|
(2,519
|
)
|
||
Loan servicing rights
|
|
(2,174
|
)
|
|
(4,546
|
)
|
||
Deferred loan fees
|
|
(3,900
|
)
|
|
—
|
|
||
Intangible amortization
|
|
(15,001
|
)
|
|
(11,543
|
)
|
||
Other
|
|
(362
|
)
|
|
(2,074
|
)
|
||
Deferred tax liabilities
|
|
$
|
(24,451
|
)
|
|
$
|
(26,566
|
)
|
Deferred tax assets, net
|
|
$
|
47,061
|
|
|
$
|
41,128
|
|
(in thousands)
|
|
2017
|
|
2016
|
||||
State tax basis difference, net of Federal tax benefit
|
|
$
|
(200
|
)
|
|
$
|
(125
|
)
|
Valuation allowances
|
|
$
|
(200
|
)
|
|
$
|
(125
|
)
|
(In thousands)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Unrecognized tax benefits at January 1
|
|
$
|
460
|
|
|
$
|
307
|
|
|
$
|
553
|
|
Increase in gross amounts of tax positions related to prior years
|
|
—
|
|
|
270
|
|
|
—
|
|
|||
Decrease in gross amounts of tax positions related to prior years
|
|
(156
|
)
|
|
—
|
|
|
—
|
|
|||
Decrease due to settlement with taxing authority
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Increase in gross amounts of tax positions related to current year
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Decrease due to lapse in statute of limitations
|
|
—
|
|
|
(117
|
)
|
|
(246
|
)
|
|||
Unrecognized tax benefits at December 31
|
|
$
|
304
|
|
|
$
|
460
|
|
|
$
|
307
|
|
|
|
Notional
Amount
|
|
Weighted
Average
Maturity
|
|
Weighted Average Rate
|
|
Estimated
Fair Value
Asset (Liability)
|
||||||||
December 31, 2017
|
|
|
|
Received
|
|
Contract pay rate
|
|
|||||||||
|
|
(In thousands)
|
|
(In years)
|
|
|
|
|
|
(In thousands)
|
||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Interest rate swaps on FHLBB borrowings
|
|
$
|
—
|
|
|
0
|
|
—
|
%
|
|
—
|
%
|
|
$
|
—
|
|
Total cash flow hedges
|
|
—
|
|
|
|
|
|
|
|
|
|
|
—
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||
Economic hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Interest rate swap on tax advantaged economic development bond
|
|
10,755
|
|
|
11.9
|
|
1.73
|
%
|
|
5.09
|
%
|
|
(1,649
|
)
|
||
Interest rate swaps on loans with commercial loan customers
|
|
943,795
|
|
|
5.9
|
|
3.26
|
%
|
|
4.25
|
%
|
|
(3,195
|
)
|
||
Reverse interest rate swaps on loans with commercial loan customers
|
|
943,795
|
|
|
5.9
|
|
4.25
|
%
|
|
3.26
|
%
|
|
3,204
|
|
||
Risk participation agreements with dealer banks
|
|
142,054
|
|
|
8.4
|
|
|
|
|
|
(26
|
)
|
||||
Forward sale commitments
|
|
276,572
|
|
|
0.2
|
|
|
|
|
|
|
|
(123
|
)
|
||
Total economic hedges
|
|
2,316,971
|
|
|
|
|
|
|
|
|
|
|
(1,789
|
)
|
||
|
|
|
|
|
|
|
|
|
|
|
||||||
Non-hedging derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Commitments to lend
|
|
193,966
|
|
|
0.2
|
|
|
|
|
|
|
|
5,259
|
|
||
Total non-hedging derivatives
|
|
193,966
|
|
|
|
|
|
|
|
|
|
|
5,259
|
|
||
Total
|
|
$
|
2,510,937
|
|
|
|
|
|
|
|
|
|
|
$
|
3,470
|
|
|
|
Notional
Amount
|
|
Weighted
Average
Maturity
|
|
Weighted Average Rate
|
|
Estimated
Fair Value
Asset (Liability)
|
||||||||
December 31, 2016
|
|
|
|
Received
|
|
Contract pay rate
|
|
|||||||||
|
|
(In thousands)
|
|
(In years)
|
|
|
|
|
|
(In thousands)
|
||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Forward-starting interest rate swaps on FHLBB borrowings
|
|
$
|
300,000
|
|
|
2.3
|
|
0.63
|
%
|
|
2.29
|
%
|
|
$
|
(6,573
|
)
|
Total cash flow hedges
|
|
300,000
|
|
|
|
|
|
|
|
|
|
|
(6,573
|
)
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Economic hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Interest rate swap on tax advantaged economic development bond
|
|
11,386
|
|
|
12.9
|
|
0.98
|
%
|
|
5.09
|
%
|
|
(2,021
|
)
|
||
Interest rate swaps on loans with commercial loan customers
|
|
668,541
|
|
|
6.2
|
|
2.43
|
%
|
|
4.21
|
%
|
|
(6,752
|
)
|
||
Reverse interest rate swaps on loans with commercial loan customers
|
|
668,541
|
|
|
6.2
|
|
4.21
|
%
|
|
2.43
|
%
|
|
7,077
|
|
||
Risk participation agreements with dealer banks
|
|
83,360
|
|
|
11.6
|
|
|
|
|
|
|
|
5
|
|
||
Forward sale commitments
|
|
259,889
|
|
|
0.2
|
|
|
|
|
|
|
|
722
|
|
||
Total economic hedges
|
|
1,691,717
|
|
|
|
|
|
|
|
|
|
|
(969
|
)
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-hedging derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Commitments to lend
|
|
208,145
|
|
|
0.2
|
|
|
|
|
|
|
|
4,738
|
|
||
Total non-hedging derivatives
|
|
208,145
|
|
|
|
|
|
|
|
|
|
|
4,738
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total
|
|
$
|
2,199,862
|
|
|
|
|
|
|
|
|
|
|
$
|
(2,804
|
)
|
|
|
Years Ended December 31,
|
||||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Interest rate swaps on FHLBB borrowings:
|
|
|
|
|
|
|
|
|
||||
Unrealized (loss) recognized in accumulated other comprehensive loss
|
|
$
|
(449
|
)
|
|
$
|
(2,023
|
)
|
|
$
|
(5,232
|
)
|
Less: Reclassification of unrealized (loss) from accumulated other comprehensive loss to interest expense
|
|
(393
|
)
|
|
(3,981
|
)
|
|
—
|
|
|||
Less: reclassification of unrealized (loss) from accumulated other
comprehensive income to other non-interest expense |
|
(6,629
|
)
|
|
—
|
|
|
—
|
|
|||
Net tax effect on items recognized in accumulated other comprehensive income
|
|
(2,589
|
)
|
|
(835
|
)
|
|
2,094
|
|
|||
Other comprehensive income recorded in accumulated other comprehensive income, net of reclassification adjustments and tax effects
|
|
$
|
3,984
|
|
|
$
|
1,123
|
|
|
$
|
(3,138
|
)
|
•
|
Best efforts loan sales,
|
•
|
Mandatory delivery loan sales, and
|
•
|
To be announced (TBA) mortgage-backed securities sales.
|
|
|
Years Ended December 31,
|
||||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Economic hedges
|
|
|
|
|
|
|
|
|
||||
Interest rate swap on industrial revenue bond:
|
|
|
|
|
|
|
|
|
||||
Unrealized gain (loss) recognized in other non-interest income
|
|
$
|
371
|
|
|
$
|
(75
|
)
|
|
$
|
(344
|
)
|
Interest rate swaps on loans with commercial loan customers:
|
|
|
|
|
|
|
|
|
||||
Unrealized gain recognized in other non-interest income
|
|
3,557
|
|
|
1,312
|
|
|
(4,852
|
)
|
|||
Reverse interest rate swaps on loans with commercial loan customers:
|
|
|
|
|
|
|
|
|
||||
Unrealized (loss) recognized in other non-interest income
|
|
(3,557
|
)
|
|
(1,312
|
)
|
|
4,852
|
|
|||
(Unfavorable) Favorable change in credit valuation adjustment recognized in other non-interest income
|
|
(316
|
)
|
|
338
|
|
|
(51
|
)
|
|||
Risk Participation Agreements:
|
|
|
|
|
|
|
|
|
||||
Unrealized (loss) recognized in other non-interest income
|
|
(31
|
)
|
|
(61
|
)
|
|
(36
|
)
|
|||
Forward Commitments:
|
|
|
|
|
|
|
|
|
||||
Unrealized gain (loss) recognized in non-interest income
|
|
(123
|
)
|
|
(1,176
|
)
|
|
(247
|
)
|
|||
Realized (loss) in non-interest income
|
|
(1,764
|
)
|
|
(3,705
|
)
|
|
45
|
|
|||
|
|
|
|
|
|
|
||||||
Non-hedging derivatives
|
|
|
|
|
|
|
|
|
||||
Commitments to lend:
|
|
|
|
|
|
|
|
|
||||
Unrealized gain recognized in non-interest income
|
|
$
|
5,259
|
|
|
$
|
8,373
|
|
|
$
|
2,436
|
|
Realized gain in non-interest income
|
|
50,879
|
|
|
3,650
|
|
|
1,899
|
|
|
|
Gross
Amounts of Recognized Assets |
|
Gross Amounts
Offset in the Statements of Condition |
|
Net Amounts of Assets
Presented in the Statements of Condition |
|
Gross Amounts Not Offset in the Statements
of Condition |
|
|
||||||||||||||
|
|
|
|
|
Financial
Instruments |
|
Cash
Collateral Received |
|
|
|||||||||||||||
(in thousands)
|
|
|
|
|
|
|
Net Amount
|
|||||||||||||||||
As of December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest Rate Swap Agreements:
|
||||||||||||||||||||||||
Institutional counterparties
|
|
$
|
2,692
|
|
|
$
|
(1,622
|
)
|
|
$
|
1,070
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,070
|
|
Commercial counterparties
|
|
8,577
|
|
|
—
|
|
|
8,577
|
|
|
—
|
|
|
—
|
|
|
8,577
|
|
||||||
Total
|
|
$
|
11,269
|
|
|
$
|
(1,622
|
)
|
|
$
|
9,647
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,647
|
|
|
|
Gross
Amounts of Recognized Liabilities |
|
Gross Amounts
Offset in the Statements of Condition |
|
Net Amounts of Liabilities
Presented in the Statement of Condition |
|
Gross Amounts Not Offset in the Statements
of Condition |
|
|
||||||||||||||
|
|
|
|
|
Financial
Instruments |
|
Cash
Collateral Received |
|
|
|||||||||||||||
(in thousands)
|
|
|
|
|
|
|
Net Amount
|
|||||||||||||||||
As of December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest Rate Swap Agreements:
|
||||||||||||||||||||||||
Institutional counterparties
|
|
$
|
(8,777
|
)
|
|
$
|
2,835
|
|
|
$
|
(5,942
|
)
|
|
$
|
3,982
|
|
|
$
|
1,960
|
|
|
$
|
—
|
|
Commercial counterparties
|
|
(5,375
|
)
|
|
2
|
|
|
(5,373
|
)
|
|
—
|
|
|
—
|
|
|
(5,373
|
)
|
||||||
Total
|
|
$
|
(14,152
|
)
|
|
$
|
2,837
|
|
|
$
|
(11,315
|
)
|
|
$
|
3,982
|
|
|
$
|
1,960
|
|
|
$
|
(5,373
|
)
|
|
|
Gross
Amounts of Recognized Assets |
|
Gross Amounts
Offset in the Statements of Condition |
|
Net Amounts of Assets
Presented in the Statements of Condition |
|
Gross Amounts Not Offset in the Statements
of Condition |
|
|
||||||||||||||
|
|
|
|
|
Financial
Instruments |
|
Cash
Collateral Received |
|
|
|||||||||||||||
(in thousands)
|
|
|
|
|
|
|
Net Amount
|
|||||||||||||||||
As of December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest Rate Swap Agreements:
|
||||||||||||||||||||||||
Institutional counterparties
|
|
$
|
49
|
|
|
$
|
—
|
|
|
$
|
49
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
49
|
|
Commercial counterparties
|
|
11,461
|
|
|
—
|
|
|
11,461
|
|
|
—
|
|
|
—
|
|
|
11,461
|
|
||||||
Total
|
|
$
|
11,510
|
|
|
$
|
—
|
|
|
$
|
11,510
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,510
|
|
|
|
Gross
Amounts of Recognized Liabilities |
|
Gross Amounts
Offset in the Statements of Condition |
|
Net Amounts of Liabilities
Presented in the Statement of Condition |
|
Gross Amounts Not Offset in the Statements
of Condition |
|
|
|||||||||||||
|
|
|
|
|
Financial
Instruments |
Cash
Collateral Received |
|
|
|||||||||||||||
(in thousands)
|
|
|
|
|
|
Net Amount
|
|||||||||||||||||
As of December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest Rate Swap Agreements:
|
|||||||||||||||||||||||
Institutional counterparties
|
|
$
|
(20,077
|
)
|
|
$
|
4,689
|
|
|
$
|
(15,388
|
)
|
|
$
|
14,738
|
|
$
|
650
|
|
|
$
|
—
|
|
Commercial counterparties
|
|
(4,407
|
)
|
|
23
|
|
|
(4,384
|
)
|
|
—
|
|
—
|
|
|
(4,384
|
)
|
||||||
Total
|
|
$
|
(24,484
|
)
|
|
$
|
4,712
|
|
|
$
|
(19,772
|
)
|
|
$
|
14,738
|
|
$
|
650
|
|
|
$
|
(4,384
|
)
|
(In thousands)
|
|
2017
|
|
2016
|
||||
Commitments to originate new loans
|
|
$
|
244,252
|
|
|
$
|
243,519
|
|
Unused funds on commercial and other lines of credit
|
|
678,567
|
|
|
574,043
|
|
||
Unadvanced funds on home equity lines of credit
|
|
297,367
|
|
|
281,621
|
|
||
Unadvanced funds on construction and real estate loans
|
|
360,472
|
|
|
320,635
|
|
||
Standby letters of credit
|
|
13,613
|
|
|
14,939
|
|
||
Lease obligation
|
|
11,323
|
|
|
11,639
|
|
||
Total
|
|
$
|
1,605,594
|
|
|
$
|
1,446,396
|
|
|
|
|
|
|
|
Minimum
Capital
Requirement
|
|
Minimum to be Well
Capitalized Under
Prompt Corrective
Action Provisions
|
|||||||||||||
|
|
Actual
|
|
|
|||||||||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Company (Consolidated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total capital to risk-weighted assets
|
|
$
|
1,063,843
|
|
|
12.43
|
%
|
|
$
|
684,692
|
|
|
8.00
|
%
|
|
$
|
855,865
|
|
|
N/A
|
|
Common Equity Tier 1 Capital to risk weighted assets
|
|
942,389
|
|
|
11.01
|
|
|
385,139
|
|
|
4.50
|
|
|
556,312
|
|
|
N/A
|
|
|||
Tier 1 capital to risk-weighted assets
|
|
954,103
|
|
|
11.15
|
|
|
513,519
|
|
|
6.00
|
|
|
684,692
|
|
|
N/A
|
|
|||
Tier 1 capital to average assets
|
|
954,103
|
|
|
9.01
|
|
|
342,346
|
|
|
4.00
|
|
|
427,932
|
|
|
N/A
|
|
|||
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total capital to risk-weighted assets
|
|
$
|
954,172
|
|
|
11.17
|
%
|
|
$
|
683,103
|
|
|
8.00
|
%
|
|
$
|
853,879
|
|
|
10.00
|
%
|
Common Equity Tier 1 Capital to risk weighted assets
|
|
881,324
|
|
|
10.32
|
|
|
384,245
|
|
|
4.50
|
|
|
555,021
|
|
|
6.50
|
|
|||
Tier 1 capital to risk-weighted assets
|
|
881,324
|
|
|
10.32
|
|
|
512,327
|
|
|
6.00
|
|
|
683,103
|
|
|
8.00
|
|
|||
Tier 1 capital to average assets
|
|
881,324
|
|
|
8.32
|
|
|
341,552
|
|
|
4.00
|
|
|
426,939
|
|
|
5.00
|
|
|||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Company (Consolidated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total capital to risk-weighted assets
|
|
$
|
803,618
|
|
|
11.87
|
%
|
|
$
|
541,603
|
|
|
8.00
|
%
|
|
$
|
677,004
|
|
|
N/A
|
|
Common Equity Tier 1 Capital to risk weighted assets
|
|
670,120
|
|
|
9.90
|
|
|
304,652
|
|
|
4.50
|
|
|
440,053
|
|
|
N/A
|
|
|||
Tier 1 capital to risk-weighted assets
|
|
681,500
|
|
|
10.07
|
|
|
406,202
|
|
|
6.00
|
|
|
541,603
|
|
|
N/A
|
|
|||
Tier 1 capital to average assets
|
|
681,500
|
|
|
7.88
|
|
|
270,802
|
|
|
4.00
|
|
|
338,502
|
|
|
N/A
|
|
|||
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total capital to risk-weighted assets
|
|
$
|
756,792
|
|
|
11.21
|
%
|
|
$
|
539,893
|
|
|
8.00
|
%
|
|
$
|
674,866
|
|
|
10.00
|
%
|
Common Equity Tier 1 Capital to risk weighted assets
|
|
672,244
|
|
|
9.96
|
|
|
303,690
|
|
|
4.50
|
|
|
438,663
|
|
|
6.50
|
|
|||
Tier 1 capital to risk-weighted assets
|
|
672,244
|
|
|
9.96
|
|
|
404,920
|
|
|
6.00
|
|
|
539,893
|
|
|
8.00
|
|
|||
Tier 1 capital to average assets
|
|
672,244
|
|
|
7.84
|
|
|
269,920
|
|
|
4.00
|
|
|
337,433
|
|
|
5.00
|
|
(In thousands)
|
|
2017
|
|
2016
|
||||
Other accumulated comprehensive income/(loss), before tax:
|
|
|
|
|
|
|
||
Net unrealized holding gain on AFS securities
|
|
$
|
10,034
|
|
|
$
|
25,176
|
|
Net (loss) on effective cash flow hedging derivatives
|
|
—
|
|
|
(6,573
|
)
|
||
Net unrealized holding (loss) on pension plans
|
|
(3,048
|
)
|
|
(2,954
|
)
|
||
|
|
|
|
|
||||
Income taxes related to items of accumulated other comprehensive income/(loss):
|
|
|
|
|
|
|
||
Net unrealized holding (gain) on AFS securities
|
|
(4,026
|
)
|
|
(9,636
|
)
|
||
Net loss on effective cash flow hedging derivatives
|
|
—
|
|
|
2,589
|
|
||
Net unrealized holding loss on pension plans
|
|
1,201
|
|
|
1,164
|
|
||
Accumulated other comprehensive income/(loss)
|
|
$
|
4,161
|
|
|
$
|
9,766
|
|
(In thousands)
|
|
Before Tax
|
|
Tax Effect
|
|
Net of Tax
|
||||||
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|||
Net unrealized holding gain on AFS securities:
|
|
|
|
|
|
|
|
|
|
|||
Net unrealized (loss) arising during the period
|
|
$
|
(2,544
|
)
|
|
$
|
1,075
|
|
|
$
|
(1,469
|
)
|
Less: reclassification adjustment for gains realized in net income
|
|
12,598
|
|
|
(4,535
|
)
|
|
8,063
|
|
|||
Net unrealized holding (loss) on AFS securities
|
|
(15,142
|
)
|
|
5,610
|
|
|
(9,532
|
)
|
|||
|
|
|
|
|
|
|
||||||
Net loss on cash flow hedging derivatives:
|
|
|
|
|
|
|
|
|
|
|||
Net unrealized (loss) arising during the period
|
|
(449
|
)
|
|
180
|
|
|
(269
|
)
|
|||
Less: reclassification adjustment for (losses) realized in net income
|
|
(7,022
|
)
|
|
2,769
|
|
|
(4,253
|
)
|
|||
Net gain on cash flow hedging derivatives
|
|
6,573
|
|
|
(2,589
|
)
|
|
3,984
|
|
|||
|
|
|
|
|
|
|
||||||
Net unrealized holding (loss) on pension plans
|
|
|
|
|
|
|
|
|
|
|||
Net unrealized (loss) arising during the period
|
|
(311
|
)
|
|
124
|
|
|
(187
|
)
|
|||
Less: reclassification adjustment for losses realized in net income
|
|
(217
|
)
|
|
87
|
|
|
(130
|
)
|
|||
Net unrealized holding (loss) on pension plans
|
|
(94
|
)
|
|
37
|
|
|
(57
|
)
|
|||
Other Comprehensive Income(Loss)
|
|
$
|
(8,663
|
)
|
|
$
|
3,058
|
|
|
$
|
(5,605
|
)
|
(In thousands)
|
|
Before Tax
|
|
Tax Effect
|
|
Net of Tax
|
||||||
Year Ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|||
Net unrealized holding gain on AFS securities:
|
|
|
|
|
|
|
|
|
|
|||
Net unrealized gain arising during the period
|
|
$
|
18,308
|
|
|
$
|
(6,979
|
)
|
|
$
|
11,329
|
|
Less: reclassification adjustment for (losses) realized in net income
|
|
(551
|
)
|
|
220
|
|
|
(331
|
)
|
|||
Net unrealized holding gain on AFS securities
|
|
18,859
|
|
|
(7,199
|
)
|
|
11,660
|
|
|||
|
|
|
|
|
|
|
||||||
Net (loss) on cash flow hedging derivatives:
|
|
|
|
|
|
|
|
|
|
|||
Net unrealized (loss) arising during the period
|
|
(2,022
|
)
|
|
754
|
|
|
(1,268
|
)
|
|||
Less: reclassification adjustment for (losses) realized in net income
|
|
(3,981
|
)
|
|
1,589
|
|
|
(2,392
|
)
|
|||
Net gain on cash flow hedging derivatives
|
|
1,959
|
|
|
(835
|
)
|
|
1,124
|
|
|||
|
|
|
|
|
|
|
||||||
Net unrealized holding gain on pension plans
|
|
|
|
|
|
|
|
|
|
|||
Net unrealized gain arising during the period
|
|
351
|
|
|
(155
|
)
|
|
196
|
|
|||
Less: reclassification adjustment for (losses) realized in net income
|
|
(164
|
)
|
|
73
|
|
|
(91
|
)
|
|||
Net unrealized holding gain on pension plans
|
|
515
|
|
|
(228
|
)
|
|
287
|
|
|||
Other Comprehensive Income
|
|
$
|
21,333
|
|
|
$
|
(8,262
|
)
|
|
$
|
13,071
|
|
(In thousands)
|
|
Before Tax
|
|
Tax Effect
|
|
Net of Tax
|
||||||
Year Ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|||
Net unrealized holding gain on AFS securities:
|
|
|
|
|
|
|
|
|
|
|||
Net unrealized loss arising during the period
|
|
$
|
(7,567
|
)
|
|
$
|
2,793
|
|
|
$
|
(4,774
|
)
|
Less: reclassification adjustment for gains realized in net income
|
|
2,110
|
|
|
(847
|
)
|
|
1,263
|
|
|||
Net unrealized holding loss on AFS securities
|
|
(9,677
|
)
|
|
3,640
|
|
|
(6,037
|
)
|
|||
|
|
|
|
|
|
|
||||||
Net (loss) on cash flow hedging derivatives:
|
|
|
|
|
|
|
|
|
|
|||
Net unrealized (loss) arising during the period
|
|
(5,232
|
)
|
|
2,094
|
|
|
(3,138
|
)
|
|||
Less: reclassification adjustment for (losses) realized in net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net (loss) on cash flow hedging derivatives
|
|
(5,232
|
)
|
|
2,094
|
|
|
(3,138
|
)
|
|||
|
|
|
|
|
|
|
||||||
Net unrealized holding (loss) on pension plans
|
|
|
|
|
|
|
|
|
|
|||
Net unrealized (loss) arising during the period
|
|
(1,436
|
)
|
|
572
|
|
|
(864
|
)
|
|||
Less: reclassification adjustment for (losses) realized in net income
|
|
(259
|
)
|
|
104
|
|
|
(155
|
)
|
|||
Net unrealized holding (loss) on pension plans
|
|
(1,177
|
)
|
|
468
|
|
|
(709
|
)
|
|||
Other Comprehensive Loss
|
|
$
|
(16,086
|
)
|
|
$
|
6,202
|
|
|
$
|
(9,884
|
)
|
(in thousands)
|
|
Net unrealized holding gain (loss) on AFS Securities
|
|
Net loss on effective cash flow hedging derivatives
|
|
Net unrealized holding gain (loss) on pension plans
|
|
Total
|
||||||||
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Balance at Beginning of Year
|
|
$
|
15,540
|
|
|
$
|
(3,984
|
)
|
|
$
|
(1,790
|
)
|
|
$
|
9,766
|
|
Other comprehensive gain (loss) before reclassifications
|
|
(1,469
|
)
|
|
(269
|
)
|
|
(187
|
)
|
|
(1,925
|
)
|
||||
Amounts reclassified from accumulated other comprehensive income
|
|
8,063
|
|
|
(4,253
|
)
|
|
(130
|
)
|
|
3,680
|
|
||||
Total Other Comprehensive (Loss) Income
|
|
(9,532
|
)
|
|
3,984
|
|
|
(57
|
)
|
|
(5,605
|
)
|
||||
Balance at End of Period
|
|
$
|
6,008
|
|
|
$
|
—
|
|
|
$
|
(1,847
|
)
|
|
$
|
4,161
|
|
|
|
|
|
|
|
|
|
|
||||||||
Year Ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Balance at Beginning of Year
|
|
$
|
3,880
|
|
|
$
|
(5,108
|
)
|
|
$
|
(2,077
|
)
|
|
$
|
(3,305
|
)
|
Other comprehensive gain (loss) before reclassifications
|
|
11,329
|
|
|
(1,268
|
)
|
|
196
|
|
|
10,257
|
|
||||
Amounts reclassified from accumulated other comprehensive income
|
|
(331
|
)
|
|
(2,392
|
)
|
|
(91
|
)
|
|
(2,814
|
)
|
||||
Total Other Comprehensive Income
|
|
11,660
|
|
|
1,124
|
|
|
287
|
|
|
13,071
|
|
||||
Balance at End of Period
|
|
$
|
15,540
|
|
|
$
|
(3,984
|
)
|
|
$
|
(1,790
|
)
|
|
$
|
9,766
|
|
|
|
|
|
|
|
|
|
|
||||||||
Year Ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Balance at Beginning of Year
|
|
$
|
9,916
|
|
|
$
|
(1,969
|
)
|
|
$
|
(1,368
|
)
|
|
$
|
6,579
|
|
Other comprehensive gain (loss) Before reclassifications
|
|
(4,774
|
)
|
|
(3,138
|
)
|
|
(864
|
)
|
|
(8,776
|
)
|
||||
Amounts reclassified from accumulated other comprehensive income
|
|
1,263
|
|
|
—
|
|
|
(155
|
)
|
|
1,108
|
|
||||
Total Other Comprehensive (Loss)
|
|
(6,037
|
)
|
|
(3,138
|
)
|
|
(709
|
)
|
|
(9,884
|
)
|
||||
Balance at End of Period
|
|
$
|
3,880
|
|
|
$
|
(5,108
|
)
|
|
$
|
(2,077
|
)
|
|
$
|
(3,305
|
)
|
|
|
|
|
|
|
|
|
Affected Line Item in the
Statement Where Net Income Is Presented |
||||||
|
|
Years Ended December 31,
|
|
|||||||||||
(in thousands)
|
|
2017
|
|
2016
|
|
2015
|
|
|||||||
Realized (losses) gains on AFS securities:
|
||||||||||||||
|
|
$
|
12,598
|
|
|
$
|
(551
|
)
|
|
$
|
2,110
|
|
|
Non-interest income
|
|
|
(4,535
|
)
|
|
220
|
|
|
(847
|
)
|
|
Tax expense
|
|||
|
|
8,063
|
|
|
(331
|
)
|
|
1,263
|
|
|
|
|||
Realized (losses) on cash flow hedging derivatives:
|
||||||||||||||
|
|
(393
|
)
|
|
—
|
|
|
—
|
|
|
Interest expense
|
|||
|
|
(6,629
|
)
|
|
—
|
|
|
—
|
|
|
Non-interest income
|
|||
|
|
—
|
|
|
(3,981
|
)
|
|
—
|
|
|
Non-interest expense
|
|||
|
|
2,769
|
|
|
1,589
|
|
|
—
|
|
|
Tax benefit
|
|||
|
|
(4,253
|
)
|
|
(2,392
|
)
|
|
—
|
|
|
|
|||
Realized (losses) on pension plans
|
|
|
|
|
|
|
|
|
||||||
|
|
(217
|
)
|
|
(164
|
)
|
|
(259
|
)
|
|
Non-interest expense
|
|||
|
|
87
|
|
|
73
|
|
|
104
|
|
|
Tax expense
|
|||
|
|
(130
|
)
|
|
(91
|
)
|
|
(155
|
)
|
|
|
|||
Total reclassifications for the period
|
|
$
|
3,680
|
|
|
$
|
(2,814
|
)
|
|
$
|
1,108
|
|
|
|
|
|
Years Ended December 31,
|
||||||||||
(In thousands, except per share data)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Net income
|
|
$
|
55,247
|
|
|
$
|
58,670
|
|
|
$
|
49,518
|
|
|
|
|
|
|
|
|
||||||
Average number of common shares issued
|
|
40,627
|
|
|
32,604
|
|
|
30,074
|
|
|||
Less: average number of treasury shares
|
|
963
|
|
|
1,116
|
|
|
1,215
|
|
|||
Less: average number of unvested stock award shares
|
|
437
|
|
|
500
|
|
|
466
|
|
|||
Plus: average participating preferred shares
|
|
229
|
|
|
—
|
|
|
—
|
|
|||
Average number of basic common shares outstanding
|
|
39,456
|
|
|
30,988
|
|
|
28,393
|
|
|||
Plus: dilutive effect of unvested stock award shares
|
|
202
|
|
|
122
|
|
|
106
|
|
|||
Plus: dilutive effect of stock options outstanding
|
|
37
|
|
|
57
|
|
|
65
|
|
|||
Average number of diluted common shares outstanding
|
|
39,695
|
|
|
31,167
|
|
|
28,564
|
|
|||
|
|
|
|
|
|
|
||||||
Basic earning per common share
|
|
$
|
1.40
|
|
|
$
|
1.89
|
|
|
$
|
1.74
|
|
|
|
|
|
|
|
|
||||||
Diluted earnings per common share
|
|
$
|
1.39
|
|
|
$
|
1.88
|
|
|
$
|
1.73
|
|
|
|
Non-vested Stock
Awards Outstanding |
|
Stock Options Outstanding
|
||||||||||
(Shares in thousands)
|
|
Number of Shares
|
|
Weighted- Average
Grant Date Fair Value |
|
Number of Shares
|
|
Weighted- Average Exercise Price
|
||||||
Balance, December 31, 2016
|
|
448
|
|
|
$
|
26.28
|
|
|
109
|
|
|
$
|
15.72
|
|
Granted
|
|
161
|
|
|
35.84
|
|
|
—
|
|
|
—
|
|
||
Stock options exercised
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
17.74
|
|
||
Stock awards vested
|
|
(174
|
)
|
|
25.68
|
|
|
—
|
|
|
—
|
|
||
Forfeited
|
|
(17
|
)
|
|
30.04
|
|
|
—
|
|
|
—
|
|
||
Expired
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
29.35
|
|
||
Balance, December 31, 2017
|
|
418
|
|
|
$
|
29.68
|
|
|
76
|
|
|
$
|
13.59
|
|
|
|
December 31, 2017
|
||||||||||||||
(In thousands)
|
|
Level 1
Inputs |
|
Level 2
Inputs |
|
Level 3
Inputs |
|
Total
Fair Value |
||||||||
Trading security
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,277
|
|
|
$
|
12,277
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Municipal bonds and obligations
|
|
—
|
|
|
118,233
|
|
|
—
|
|
|
118,233
|
|
||||
Agency collateralized mortgage obligations
|
|
—
|
|
|
851,158
|
|
|
—
|
|
|
851,158
|
|
||||
Agency residential mortgage-backed securities
|
|
—
|
|
|
216,940
|
|
|
—
|
|
|
216,940
|
|
||||
Agency commercial mortgage-backed securities
|
|
—
|
|
|
62,305
|
|
|
—
|
|
|
62,305
|
|
||||
Corporate bonds
|
|
—
|
|
|
110,721
|
|
|
—
|
|
|
110,721
|
|
||||
Trust preferred securities
|
|
—
|
|
|
11,677
|
|
|
—
|
|
|
11,677
|
|
||||
Other bonds and obligations
|
|
—
|
|
|
9,880
|
|
|
—
|
|
|
9,880
|
|
||||
Marketable equity securities
|
|
44,851
|
|
|
334
|
|
|
—
|
|
|
45,185
|
|
||||
Loans held for sale
|
|
—
|
|
|
153,620
|
|
|
—
|
|
|
153,620
|
|
||||
Derivative assets
|
|
—
|
|
|
14,049
|
|
|
5,259
|
|
|
19,308
|
|
||||
Other assets
|
|
—
|
|
|
—
|
|
|
3,834
|
|
|
3,834
|
|
||||
Derivative liabilities
|
|
104
|
|
|
15,715
|
|
|
19
|
|
|
15,838
|
|
|
|
December 31, 2016
|
||||||||||||||
(In thousands)
|
|
Level 1
Inputs |
|
Level 2
Inputs |
|
Level 3
Inputs |
|
Total
Fair Value |
||||||||
Trading security
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13,229
|
|
|
$
|
13,229
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Municipal bonds and obligations
|
|
—
|
|
|
119,816
|
|
|
—
|
|
|
119,816
|
|
||||
Agency collateralized mortgage obligations
|
|
—
|
|
|
651,911
|
|
|
—
|
|
|
651,911
|
|
||||
Agency residential mortgage-backed securities
|
|
—
|
|
|
228,684
|
|
|
—
|
|
|
228,684
|
|
||||
Agency commercial mortgage-backed securities
|
|
—
|
|
|
64,534
|
|
|
—
|
|
|
64,534
|
|
||||
Corporate bonds
|
|
—
|
|
|
56,006
|
|
|
—
|
|
|
56,006
|
|
||||
Trust preferred securities
|
|
—
|
|
|
11,887
|
|
|
—
|
|
|
11,887
|
|
||||
Other bonds and obligations
|
|
—
|
|
|
11,158
|
|
|
—
|
|
|
11,158
|
|
||||
Marketable equity securities
|
|
62,284
|
|
|
3,257
|
|
|
—
|
|
|
65,541
|
|
||||
Loans held for sale
|
|
—
|
|
|
120,673
|
|
|
—
|
|
|
120,673
|
|
||||
Derivative assets
|
|
622
|
|
|
16,157
|
|
|
4,838
|
|
|
21,617
|
|
||||
Other assets
|
|
—
|
|
|
—
|
|
|
798
|
|
|
798
|
|
||||
Derivative liabilities
|
|
—
|
|
|
24,420
|
|
|
—
|
|
|
24,420
|
|
|
|
Aggregate
Fair Value |
|
Aggregate
Unpaid Principal |
|
Aggregate Fair Value
Less Aggregate Unpaid Principal |
||||||
December 31, 2017 (In thousands)
|
|
|
|
|||||||||
Loans Held for Sale
|
|
$
|
153,620
|
|
|
$
|
149,022
|
|
|
$
|
4,598
|
|
|
|
Aggregate
Fair Value |
|
Aggregate
Unpaid Principal |
|
Aggregate Fair Value
Less Aggregate Unpaid Principal |
||||||
December 31, 2016 (In thousands)
|
|
|
|
|||||||||
Loans Held for Sale
|
|
$
|
120,673
|
|
|
$
|
118,178
|
|
|
$
|
2,495
|
|
|
|
Assets (Liabilities)
|
||||||||||||||||||
(In thousands)
|
|
Trading
Security |
|
Securities Available for Sale
|
|
Commitments to Lend
|
|
Forward
Commitments |
|
Capitalized Servicing Rights
|
||||||||||
Balance as of December 31, 2015
|
|
$
|
14,189
|
|
|
$
|
708
|
|
|
$
|
323
|
|
|
$
|
9
|
|
|
$
|
—
|
|
Amounts acquired from First Choice Bank
|
|
—
|
|
|
—
|
|
|
3,900
|
|
|
—
|
|
|
696
|
|
|||||
Unrealized (loss) gain, net recognized in other non-interest income
|
|
(362
|
)
|
|
—
|
|
|
13,563
|
|
|
91
|
|
|
102
|
|
|||||
Unrealized gain included in accumulated other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Transfers to Level 2
|
|
—
|
|
|
(708
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Paydown of trading security
|
|
(598
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Transfers to loans held for sale
|
|
—
|
|
|
—
|
|
|
(13,048
|
)
|
|
—
|
|
|
—
|
|
|||||
Balance as of December 31, 2016
|
|
$
|
13,229
|
|
|
$
|
—
|
|
|
$
|
4,738
|
|
|
$
|
100
|
|
|
$
|
798
|
|
Unrealized (loss) gain, net recognized in other non-interest income
|
|
(320
|
)
|
|
—
|
|
|
63,894
|
|
|
(81
|
)
|
|
(221
|
)
|
|||||
Unrealized gain included in accumulated other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Transfers to Level 2
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Paydown of trading security
|
|
(632
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Transfers to loans held for sale
|
|
—
|
|
|
—
|
|
|
(63,373
|
)
|
|
—
|
|
|
—
|
|
|||||
Additions to servicing rights
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,257
|
|
|||||
Balance as of December 31, 2017
|
|
$
|
12,277
|
|
|
$
|
—
|
|
|
$
|
5,259
|
|
|
$
|
19
|
|
|
$
|
3,834
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized gains (losses) relating to instruments still held at December 31, 2017
|
|
$
|
1,522
|
|
|
$
|
—
|
|
|
$
|
5,259
|
|
|
$
|
19
|
|
|
$
|
(221
|
)
|
Unrealized gains relating to instruments still held at December 31, 2016
|
|
$
|
1,843
|
|
|
$
|
—
|
|
|
$
|
4,738
|
|
|
$
|
100
|
|
|
$
|
102
|
|
|
|
Fair Value
|
|
|
|
|
|
Significant Unobservable Input Value
|
||||
(In thousands)
|
|
December 31, 2017
|
|
Valuation Techniques
|
|
Unobservable Inputs
|
|
|||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||
Trading Security
|
|
$
|
12,277
|
|
|
Discounted Cash Flow
|
|
Discount Rate
|
|
2.74
|
%
|
|
Forward Commitments
|
|
19
|
|
|
Historical Trend
|
|
Closing Ratio
|
|
81.53
|
%
|
||
|
|
|
|
Pricing Model
|
|
Origination Costs, per loan
|
|
$
|
3,692
|
|
||
Commitments to Lend
|
|
5,259
|
|
|
Historical Trend
|
|
Closing Ratio
|
|
81.53
|
%
|
||
|
|
|
|
Pricing Model
|
|
Origination Costs, per loan
|
|
$
|
3,692
|
|
||
Capitalized Servicing Rights
|
|
3,834
|
|
|
Discounted cash flow
|
|
Constant prepayment rate (CPR)
|
|
10.00
|
%
|
||
|
|
|
|
|
|
Discount rate
|
|
10.95
|
%
|
|||
Total
|
|
$
|
21,389
|
|
|
|
|
|
|
|
|
|
|
Fair Value
|
|
|
|
|
|
Significant
Unobservable Input Value |
||||
(In thousands)
|
|
December 31, 2016
|
|
Valuation Techniques
|
|
Unobservable Inputs
|
|
|||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||
Trading Security
|
|
$
|
13,229
|
|
|
Discounted Cash Flow
|
|
Discount Rate
|
|
2.62
|
%
|
|
Forward Commitments
|
|
100
|
|
|
Historical Trend
|
|
Closing Ratio
|
|
80.36
|
%
|
||
Commitments to Lend
|
|
4,738
|
|
|
Pricing Model
|
|
Origination Costs, per loan
|
|
$
|
3.692
|
|
|
|
|
|
|
Historical Trend
|
|
Closing Ratio
|
|
80.36
|
%
|
|||
Capitalized Servicing Rights
|
|
798
|
|
|
Pricing Model
|
|
Origination Costs, per loan
|
|
$
|
3.692
|
|
|
|
|
|
|
Discounted cash flow
|
|
Constant prepayment rate (CPR)
|
|
10.40
|
%
|
|||
|
|
|
|
|
|
Discount rate
|
|
11.00
|
%
|
|||
Total
|
|
$
|
18,865
|
|
|
|
|
|
|
|
|
|
|
December 31, 2017
|
|
|
Fair Value Measurements as of December 31, 2017
|
||
(In thousands)
|
|
Level 3
Inputs |
|
|
Level 3
Inputs
|
||
Assets
|
|
|
|
|
|
|
|
Impaired loans
|
|
$
|
23,853
|
|
|
|
December 2017
|
Capitalized servicing rights
|
|
12,527
|
|
|
|
December 2017
|
|
Other real estate owned
|
|
—
|
|
|
|
—
|
|
Total
|
|
$
|
36,380
|
|
|
|
|
|
|
December 31, 2016
|
|
|
Fair Value Measurements as of December 31, 2016
|
||
(In thousands)
|
|
Level 3
Inputs |
|
|
Level 3
Inputs |
||
Assets
|
|
|
|
|
|
|
|
Impaired loans
|
|
$
|
17,761
|
|
|
|
December 2016
|
Capitalized servicing rights
|
|
10,726
|
|
|
|
December 2016
|
|
Other real estate owned
|
|
151
|
|
|
|
Feb. 2016 - July 2016
|
|
Total
|
|
$
|
28,638
|
|
|
|
|
(in thousands)
|
|
December 31, 2016
|
|
Valuation Techniques
|
|
Unobservable Inputs
|
|
Range (Weighted Average) (a)
|
||
Assets
|
|
|
|
|
|
|
|
|
|
|
Impaired loans
|
|
$
|
17,761
|
|
|
Fair value of collateral
|
|
Loss severity
|
|
0% to 88.70% (9.73%)
|
|
|
|
|
|
|
|
Appraised value
|
|
$0 to $2,192 ($1,026)
|
|
Capitalized servicing rights
|
|
10,726
|
|
|
Discounted cash flow
|
|
Constant prepayment rate (CPR)
|
|
7.35% to 14.28% (10.44%)
|
|
|
|
|
|
|
|
|
Discount rate
|
|
10.00% to 14.00% (11.77%)
|
|
Other real estate owned
|
|
151
|
|
|
Fair value of collateral
|
|
Appraised value
|
|
$101 to $129 ($122)
|
|
Total Assets
|
|
$
|
28,638
|
|
|
|
|
|
|
|
|
|
December 31, 2017
|
||||||||||||||||||
|
|
Carrying
Amount |
|
Fair
Value |
|
|
|
|
|
|
||||||||||
(In thousands)
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
|
$
|
248,763
|
|
|
$
|
248,763
|
|
|
$
|
248,763
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Trading security
|
|
12,277
|
|
|
12,277
|
|
|
—
|
|
|
—
|
|
|
12,277
|
|
|||||
Securities available for sale
|
|
1,426,099
|
|
|
1,426,099
|
|
|
44,850
|
|
|
1,381,249
|
|
|
—
|
|
|||||
Securities held to maturity
|
|
397,103
|
|
|
405,276
|
|
|
—
|
|
|
371,458
|
|
|
33,818
|
|
|||||
FHLB stock and restricted equity securities
|
|
63,085
|
|
|
N/A
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
|||||
Net loans
|
|
8,247,504
|
|
|
8,422,034
|
|
|
—
|
|
|
—
|
|
|
8,422,034
|
|
|||||
Loans held for sale
|
|
153,620
|
|
|
153,620
|
|
|
—
|
|
|
153,620
|
|
|
—
|
|
|||||
Accrued interest receivable
|
|
33,739
|
|
|
33,739
|
|
|
—
|
|
|
33,739
|
|
|
—
|
|
|||||
Derivative assets
|
|
19,308
|
|
|
19,308
|
|
|
—
|
|
|
14,049
|
|
|
5,259
|
|
|||||
Assets held for sale
|
|
1,392
|
|
|
1,392
|
|
|
—
|
|
|
1,392
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total deposits
|
|
8,749,530
|
|
|
8,731,527
|
|
|
—
|
|
|
8,731,527
|
|
|
—
|
|
|||||
Short-term debt
|
|
667,300
|
|
|
667,246
|
|
|
—
|
|
|
667,246
|
|
|
—
|
|
|||||
Long-term FHLB advances
|
|
380,436
|
|
|
378,766
|
|
|
—
|
|
|
378,766
|
|
|
—
|
|
|||||
Subordinated notes
|
|
89,339
|
|
|
97,414
|
|
|
—
|
|
|
97,414
|
|
|
—
|
|
|||||
Derivative liabilities
|
|
15,838
|
|
|
15,838
|
|
|
104
|
|
|
15,715
|
|
|
19
|
|
|
|
December 31, 2016
|
||||||||||||||||||
|
|
Carrying
Amount |
|
Fair
Value |
|
|
|
|
|
|
||||||||||
(In thousands)
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
|
$
|
113,075
|
|
|
$
|
113,075
|
|
|
$
|
113,075
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Trading security
|
|
13,229
|
|
|
13,229
|
|
|
—
|
|
|
—
|
|
|
13,229
|
|
|||||
Securities available for sale
|
|
1,209,537
|
|
|
1,209,537
|
|
|
62,284
|
|
|
1,147,253
|
|
|
—
|
|
|||||
Securities held to maturity
|
|
334,368
|
|
|
337,680
|
|
|
—
|
|
|
300,806
|
|
|
36,874
|
|
|||||
FHLB stock and restricted equity securities
|
|
71,112
|
|
|
N/A
|
|
|
—
|
|
|
N/A
|
|
|
—
|
|
|||||
Net loans
|
|
6,505,789
|
|
|
6,532,745
|
|
|
—
|
|
|
—
|
|
|
6,532,745
|
|
|||||
Loans held for sale
|
|
120,673
|
|
|
120,673
|
|
|
—
|
|
|
120,673
|
|
|
—
|
|
|||||
Accrued interest receivable
|
|
26,113
|
|
|
26,113
|
|
|
—
|
|
|
26,113
|
|
|
—
|
|
|||||
Derivative assets
|
|
21,617
|
|
|
21,617
|
|
|
622
|
|
|
16,157
|
|
|
4,838
|
|
|||||
Assets held for sale
|
|
322
|
|
|
322
|
|
|
—
|
|
|
322
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total deposits
|
|
6,622,092
|
|
|
6,624,108
|
|
|
—
|
|
|
6,624,108
|
|
|
—
|
|
|||||
Short-term debt
|
|
1,082,044
|
|
|
1,081,996
|
|
|
—
|
|
|
1,081,996
|
|
|
—
|
|
|||||
Long-term FHLB advances
|
|
142,792
|
|
|
143,151
|
|
|
—
|
|
|
143,151
|
|
|
—
|
|
|||||
Subordinated notes
|
|
89,161
|
|
|
96,973
|
|
|
—
|
|
|
96,973
|
|
|
—
|
|
|||||
Derivative liabilities
|
|
24,420
|
|
|
24,420
|
|
|
—
|
|
|
24,420
|
|
|
—
|
|
|
|
December 31,
|
||||||
(In thousands)
|
|
2017
|
|
2016
|
||||
Assets
|
|
|
|
|
|
|
||
Cash due from Berkshire Bank
|
|
$
|
83,380
|
|
|
$
|
43,018
|
|
Investment in subsidiaries
|
|
1,470,859
|
|
|
1,127,706
|
|
||
Securities available for sale, at fair value
|
|
21,827
|
|
|
23,651
|
|
||
Other assets
|
|
12,138
|
|
|
1,372
|
|
||
Total assets
|
|
$
|
1,588,204
|
|
|
$
|
1,195,747
|
|
|
|
|
|
|
||||
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
||
Short term debt
|
|
$
|
—
|
|
|
$
|
10,000
|
|
Subordinated notes
|
|
89,339
|
|
|
89,161
|
|
||
Accrued expenses
|
|
2,601
|
|
|
3,288
|
|
||
Shareholders’ equity
|
|
1,496,264
|
|
|
1,093,298
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
1,588,204
|
|
|
$
|
1,195,747
|
|
|
|
Years Ended December 31,
|
||||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Income:
|
|
|
|
|
|
|
|
|
|
|||
Dividends from subsidiaries
|
|
$
|
39,000
|
|
|
$
|
33,000
|
|
|
$
|
34,000
|
|
Other
|
|
5,864
|
|
|
4,072
|
|
|
2,763
|
|
|||
Total income
|
|
44,864
|
|
|
37,072
|
|
|
36,763
|
|
|||
Interest expense
|
|
5,338
|
|
|
5,743
|
|
|
5,674
|
|
|||
Non-interest expenses
|
|
6,042
|
|
|
3,740
|
|
|
3,670
|
|
|||
Total expense
|
|
11,380
|
|
|
9,483
|
|
|
9,344
|
|
|||
Income before income taxes and equity in undistributed income of subsidiaries
|
|
33,484
|
|
|
27,589
|
|
|
27,419
|
|
|||
Income tax benefit
|
|
(1,783
|
)
|
|
(2,123
|
)
|
|
(2,518
|
)
|
|||
Income before equity in undistributed income of subsidiaries
|
|
35,267
|
|
|
29,712
|
|
|
29,937
|
|
|||
Equity in undistributed income of subsidiaries
|
|
19,980
|
|
|
28,958
|
|
|
19,581
|
|
|||
Net income
|
|
55,247
|
|
|
58,670
|
|
|
49,518
|
|
|||
Preferred stock dividend
|
|
219
|
|
|
—
|
|
|
—
|
|
|||
Income available to common shareholders
|
|
$
|
55,028
|
|
|
$
|
58,670
|
|
|
$
|
49,518
|
|
|
|
Years Ended December 31,
|
||||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|||
Net income
|
|
$
|
55,247
|
|
|
$
|
58,670
|
|
|
$
|
49,518
|
|
Adjustments to reconcile net income to net cash (used) provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|||
Equity in undistributed income of subsidiaries
|
|
(19,980
|
)
|
|
(28,958
|
)
|
|
(19,581
|
)
|
|||
Other, net
|
|
(7,964
|
)
|
|
1,988
|
|
|
10,904
|
|
|||
Net cash provided by operating activities
|
|
27,303
|
|
|
31,700
|
|
|
40,841
|
|
|||
|
|
|
|
|
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|||
Advances to subsidiaries
|
|
(100,000
|
)
|
|
—
|
|
|
—
|
|
|||
Acquisitions, net of cash paid
|
|
—
|
|
|
—
|
|
|
(3,293
|
)
|
|||
Purchase of securities
|
|
(1,057
|
)
|
|
(18,016
|
)
|
|
(18
|
)
|
|||
Sale of securities
|
|
2,101
|
|
|
—
|
|
|
—
|
|
|||
Other, net
|
|
1,508
|
|
|
9,728
|
|
|
—
|
|
|||
Net cash (used) in investing activities
|
|
(97,448
|
)
|
|
(8,288
|
)
|
|
(3,311
|
)
|
|||
|
|
|
|
|
|
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|||
Proceed from issuance of short term debt
|
|
—
|
|
|
9,349
|
|
|
—
|
|
|||
Repayment of short term debt
|
|
(9,822
|
)
|
|
—
|
|
|
(9,935
|
)
|
|||
Net proceeds from common stock
|
|
153,313
|
|
|
3,712
|
|
|
—
|
|
|||
Net proceeds from preferred stock
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net proceeds from reissuance of treasury stock
|
|
—
|
|
|
—
|
|
|
240
|
|
|||
Payment to repurchase common stock
|
|
—
|
|
|
(4,632
|
)
|
|
(550
|
)
|
|||
Common stock cash dividends paid
|
|
(33,022
|
)
|
|
(24,916
|
)
|
|
(21,903
|
)
|
|||
Preferred stock cash dividends paid
|
|
(219
|
)
|
|
—
|
|
|
—
|
|
|||
Other, net
|
|
257
|
|
|
11
|
|
|
167
|
|
|||
Net cash provided provided/(used) by financing activities
|
|
110,507
|
|
|
(16,476
|
)
|
|
(31,981
|
)
|
|||
|
|
|
|
|
|
|
||||||
Net change in cash and cash equivalents
|
|
40,362
|
|
|
6,936
|
|
|
5,549
|
|
|||
|
|
|
|
|
|
|
||||||
Cash and cash equivalents at beginning of year
|
|
43,018
|
|
|
36,082
|
|
|
30,533
|
|
|||
|
|
|
|
|
|
|
||||||
Cash and cash equivalents at end of year
|
|
$
|
83,380
|
|
|
$
|
43,018
|
|
|
$
|
36,082
|
|
|
|
2017
|
|
2016
|
||||||||||||||||||||||||||||
(In thousands, except per share data)
|
|
Fourth Quarter
|
|
Third Quarter
|
|
Second Quarter
|
|
First Quarter
|
|
Fourth Quarter
|
|
Third Quarter
|
|
Second Quarter
|
|
First Quarter
|
||||||||||||||||
Interest and dividend income
|
|
$
|
105,823
|
|
|
$
|
89,060
|
|
|
$
|
84,666
|
|
|
$
|
80,709
|
|
|
$
|
72,434
|
|
|
$
|
70,511
|
|
|
$
|
69,018
|
|
|
$
|
68,476
|
|
Interest expense
|
|
19,457
|
|
|
17,062
|
|
|
15,121
|
|
|
13,823
|
|
|
13,276
|
|
|
12,540
|
|
|
11,577
|
|
|
10,779
|
|
||||||||
Net interest income
|
|
86,366
|
|
|
71,998
|
|
|
69,545
|
|
|
66,886
|
|
|
59,158
|
|
|
57,971
|
|
|
57,441
|
|
|
57,697
|
|
||||||||
Non-interest income
|
|
29,298
|
|
|
28,836
|
|
|
32,798
|
|
|
34,757
|
|
|
16,725
|
|
|
18,941
|
|
|
14,555
|
|
|
15,630
|
|
||||||||
Total revenue
|
|
115,664
|
|
|
100,834
|
|
|
102,343
|
|
|
101,643
|
|
|
75,883
|
|
|
76,912
|
|
|
71,996
|
|
|
73,327
|
|
||||||||
Provision for loan losses
|
|
6,141
|
|
|
4,900
|
|
|
4,889
|
|
|
5,095
|
|
|
4,100
|
|
|
4,734
|
|
|
4,522
|
|
|
4,006
|
|
||||||||
Non-interest expense
|
|
90,041
|
|
|
65,820
|
|
|
69,523
|
|
|
74,326
|
|
|
61,090
|
|
|
48,844
|
|
|
46,268
|
|
|
47,100
|
|
||||||||
Income before income taxes
|
|
19,482
|
|
|
30,114
|
|
|
27,931
|
|
|
22,222
|
|
|
10,693
|
|
|
23,334
|
|
|
21,206
|
|
|
22,221
|
|
||||||||
Income tax expense (1)
|
|
22,292
|
|
|
7,211
|
|
|
8,237
|
|
|
6,762
|
|
|
362
|
|
|
6,953
|
|
|
5,249
|
|
|
6,220
|
|
||||||||
Net (loss)/income
|
|
$
|
(2,810
|
)
|
|
$
|
22,903
|
|
|
$
|
19,694
|
|
|
$
|
15,460
|
|
|
$
|
10,331
|
|
|
$
|
16,381
|
|
|
$
|
15,957
|
|
|
$
|
16,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic (loss)/earnings per common share
|
|
$
|
(0.06
|
)
|
|
$
|
0.57
|
|
|
$
|
0.53
|
|
|
$
|
0.44
|
|
|
$
|
0.32
|
|
|
$
|
0.53
|
|
|
$
|
0.52
|
|
|
$
|
0.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Diluted (loss)/earnings per share
|
|
$
|
(0.06
|
)
|
|
$
|
0.57
|
|
|
$
|
0.53
|
|
|
$
|
0.44
|
|
|
$
|
0.32
|
|
|
$
|
0.53
|
|
|
$
|
0.52
|
|
|
$
|
0.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
45,122
|
|
|
39,984
|
|
|
37,324
|
|
|
35,280
|
|
|
32,185
|
|
|
30,621
|
|
|
30,605
|
|
|
30,511
|
|
||||||||
Diluted
|
|
45,122
|
|
|
40,145
|
|
|
37,474
|
|
|
35,452
|
|
|
32,381
|
|
|
30,811
|
|
|
30,765
|
|
|
30,688
|
|
(1)
|
2017 income tax expense includes
$18.1 million
charge to re-measure the net deferred tax asset at December 31, 2017 pursuant to the reduction in the corporate income tax rate from 35% to 21%, effective January 1, 2018, per the Tax Cuts and Jobs Act enacted on December 22, 2017.
|
|
|
Years Ended December 31,
|
||||||||||
(In thousands)
|
|
2017
|
|
2016
|
|
2015
|
||||||
Net interest income
|
|
$
|
294,795
|
|
|
$
|
232,267
|
|
|
$
|
213,849
|
|
Provision for loan losses
|
|
21,025
|
|
|
17,362
|
|
|
16,726
|
|
|||
Net interest income after provision for loan losses
|
|
273,770
|
|
|
214,905
|
|
|
197,123
|
|
|||
Total non-interest income
|
|
125,689
|
|
|
65,851
|
|
|
54,288
|
|
|||
Total non-interest expense
|
|
299,710
|
|
|
203,302
|
|
|
196,829
|
|
|||
Income from continuing operations before income taxes
|
|
99,749
|
|
|
77,454
|
|
|
54,582
|
|
|||
Income tax expense
|
|
44,502
|
|
|
18,784
|
|
|
5,064
|
|
|||
Net income
|
|
$
|
55,247
|
|
|
$
|
58,670
|
|
|
$
|
49,518
|
|
Tier
|
Incentive Opportunity
(% of Base Salary)
|
CEO
|
60%
|
President
|
45%
|
Senior EVP
|
40%
|
Incentive Target Opportunities for all Participants
|
x
|
Corporate Financial Performance
Scorecard
(0% - 150%)
|
x
|
Strategic Plan Multiplier
(85% - 115%)
|
=
|
Funded Incentive Pool
|
BERKSHIRE BANK 2017 CORPORATE FINANCIAL PERFORMANCE SCORECARD
|
|||||
Performance Measure
|
Definition*
|
Weight
|
Threshold
(funds 50% of award/pool)
|
Target
(funds 100% of award/pool)
|
Stretch
(funds 150% of award/pool)
|
|
|
|
95% of Total Core NI
|
100% of Total Core NI
|
105% of Total Core NI
|
Core Earnings
|
Total Core Net Income
|
25%
|
$75,484,496
|
$81,921,737
|
$83,430,232
|
Expense Management
|
Annual Core Efficiency Ratio
|
25%
|
65%
|
63%
|
61%
|
Asset Quality
|
Criticized Assets
(Tier 1 + ALLL)
|
25%
|
27%
|
23%
|
19%
|
ROA
|
Core ROA
|
25%
|
0.83%
|
0.87%
|
0.91%
|
X
|
|||||
Strategic Plan Multiplier: The Compensation Committee has the discretion to modify the pool +/- 15% based on the level of achievement of strategic goals. In addition, the Committee will consider and discuss overall risk and can adjust the pool downward to reflect any risk or regulatory issues.
|
1.
|
The first step will evaluate performance based on the Corporate Scorecard and Strategic Plan achievement. The result of the Corporate Scorecard and Strategic Plan Modifier determines the pool of incentives available for distribution to all executives.
|
•
|
Core Net Income (25% x 100% performance) + Efficiency Ratio (25% x 115%) + Criticized Assets (25% x130%) + Core ROA (25% x 100%) = 111.25% funding for Corporate Financial Performance.
|
Corporate Financial Performance Scorecard
|
x
|
Strategic Plan Multiplier
|
=
|
120%
Total Incentive Pool
|
||||
Performance Measure
|
Performance Goal
|
Weight
|
Actual Performance
|
Pool Allocation
|
||||
Total Core Net Income
|
TBD
|
25%
|
Target
|
100%
|
Upon the Committee’s evaluation of strategic goals achievement and overall risk
(85% - 115%)
|
|||
Annual Core Efficiency Ratio
|
TBD
|
25%
|
Above target
|
115%
|
||||
Criticized Assets
(Tier 1 + ALLL)
|
TBD
|
25%
|
Near Stretch
|
130%
|
||||
Core ROA
|
TBD
|
25%
|
Target
|
100%
|
||||
TOTAL
|
100%
|
111.25%
|
108%
|
2.
|
Individual performance is considered to determine the actual award. Individual performance can adjust the incentive award up or down, although total awards cannot exceed the pool and no single award should exceed 200% of target (e.g. $200k for our example).
|
•
|
If the senior executive did not meet all goals, the award may be less than target.
|
•
|
If the senior executive exceeded all goals, the award may be higher than target.
|
•
|
The senior executive’s award cannot exceed $200k (200% of $100,000 target incentive opportunity)
|
Name
|
|
State or Other Jurisdiction of Incorporation or Organization
|
|
||
|
|
|
Berkshire Hills Bancorp, Inc.
|
|
Delaware
|
Berkshire Bank
|
|
Massachusetts
|
Beacon Comprehensive Services Corp.
|
|
New York
|
RSB Properties, Inc.
|
|
New York
|
CSB Service Corp.
|
|
Massachusetts
|
Legacy Insurance Services of the Berkshires, LLC
|
|
Delaware
|
North Street Securities Corporation
|
|
Massachusetts
|
Woodland Securities, Inc.
|
|
Massachusetts
|
Hampden Investment Corporation II
|
|
Massachusetts
|
Firestone Financial, LLC
|
|
Massachusetts
|
First Choice Loan Services Inc.
|
|
New Jersey
|
Old Spot Properties, LLC
|
|
New Jersey
|
FCB New Jersey Investment Company
|
|
New Jersey
|
Novus Asset Management Inc.
|
|
Delaware
|
Metro Commerce Real Estate
|
|
Massachusetts
|
Berkshire Insurance Group, Inc.
|
|
Massachusetts
|
|
|
|
Date: March 1, 2018
|
/s/ Michael P. Daly
|
|
Michael P. Daly
|
|
President and Chief Executive Officer
|
Date: March 1, 2018
|
/s/ James M. Moses
|
|
James M. Moses
|
|
Senior Executive Vice President,
|
|
Chief Financial Officer
|
March 1, 2018
|
|
/s/ Michael P. Daly
|
|
|
Michael P. Daly
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
|
March 1, 2018
|
|
/s/ James M. Moses
|
|
|
James M. Moses
|
|
|
Senior Executive Vice President
|
|
|
Chief Financial Officer
|
|
|
|