þ
|
Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
o
|
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
|
|
Maryland
|
46-5429062
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
|
|
320 Norwood Park South,
Norwood, Massachusetts
|
02062
Zip Code
|
(Address of Principal Executive Offices)
|
|
|
|
Title of Each Class
|
Name of Each Exchange on Which Registered
|
Common Stock, $0.01 par value
|
The NASDAQ Stock Market, LLC
|
|
|
|
|
|
|
|
|
Large Accelerated Filer
|
o
|
Accelerated Filer
|
o
|
Non-Accelerated Filer
|
þ
|
Smaller Reporting Company
|
o
|
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|
Page
|
|
PART I
|
|
Item 1.
|
||
Item 1A.
|
||
Item 1B.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
PART II
|
|
Item 5.
|
||
Item 6.
|
||
Item 7.
|
||
Item 7A.
|
||
Item 8.
|
||
Item 9.
|
||
Item 9A.
|
||
Item 9B.
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||
|
PART III
|
|
Item 10.
|
||
Item 11.
|
||
Item 12.
|
||
Item 13.
|
||
Item 14.
|
||
|
PART IV
|
|
Item 15.
|
||
|
|
|
|
Signatures
|
|
•
|
statements of our goals, intentions and expectations;
|
•
|
statements regarding our business plans, prospects, growth and operating strategies;
|
•
|
statements regarding the asset quality of our loan and investment portfolios; and
|
•
|
estimates of our risks and future costs and benefits.
|
•
|
our ability to implement successfully our new business strategy, which includes significant asset and liability growth;
|
•
|
our ability to increase our market share in our market areas and capitalize on growth opportunities;
|
•
|
our ability to implement successfully our branch network expansion strategy;
|
•
|
general economic conditions, either nationally or in our market areas, that are worse than expected;
|
•
|
competition among depository and other financial institutions;
|
•
|
inflation and changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments;
|
•
|
adverse changes in the securities markets which, given the significant size of our investment securities portfolio, could cause a material decline in our reported equity and/or our net income if we must record impairment charges or a decline in the fair value of our securities, which are all available for sale;
|
•
|
changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements;
|
•
|
changes in consumer spending, borrowing and savings habits;
|
•
|
changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission and the Public Company Accounting Oversight Board;
|
•
|
changes in our organization, compensation and benefit plans;
|
•
|
changes in our financial condition or results of operations that reduce capital available to pay dividends; and
|
•
|
changes in the financial condition or future prospects of issuers of securities that we own.
|
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|||||||||||||||||||||||||
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||
Real estate loans and lines:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
1-4 family residential
|
$
|
460,273
|
|
|
40.13
|
%
|
|
$
|
364,942
|
|
|
47.26
|
%
|
|
$
|
311,713
|
|
|
63.27
|
%
|
|
$
|
264,167
|
|
|
94.64
|
%
|
|
$
|
191,591
|
|
|
94.04
|
%
|
Home equity
|
61,750
|
|
|
5.38
|
|
|
25,535
|
|
|
3.31
|
%
|
|
25,062
|
|
|
5.09
|
|
|
2,925
|
|
|
1.05
|
|
|
3,044
|
|
|
1.49
|
%
|
|||||
Commercial
|
387,807
|
|
|
33.81
|
|
|
228,688
|
|
|
29.61
|
%
|
|
100,904
|
|
|
20.48
|
|
|
7,656
|
|
|
2.74
|
|
|
6,327
|
|
|
3.10
|
%
|
|||||
Construction
|
53,606
|
|
|
4.67
|
|
|
16,559
|
|
|
2.14
|
%
|
|
5,753
|
|
|
1.17
|
|
|
656
|
|
|
0.24
|
|
|
1,236
|
|
|
0.60
|
%
|
|||||
Total real estate loans and lines
|
963,436
|
|
|
83.99
|
|
|
635,724
|
|
|
82.32
|
|
|
443,432
|
|
|
90.01
|
|
|
275,404
|
|
|
98.67
|
|
|
202,198
|
|
|
99.23
|
%
|
|||||
Commercial business loans
|
151,823
|
|
|
13.24
|
|
|
111,154
|
|
|
14.39
|
|
|
33,762
|
|
|
6.85
|
|
|
1,000
|
|
|
0.36
|
|
|
1,000
|
|
|
0.49
|
%
|
|||||
Consumer loans
|
31,778
|
|
|
2.77
|
|
|
25,372
|
|
|
3.29
|
|
|
15,473
|
|
|
3.14
|
|
|
2,710
|
|
|
0.97
|
|
|
549
|
|
|
0.28
|
%
|
|||||
Total loans
|
1,147,037
|
|
|
100.00
|
%
|
|
772,250
|
|
|
100.00
|
%
|
|
492,667
|
|
|
100.00
|
%
|
|
279,114
|
|
|
100.00
|
%
|
|
203,747
|
|
|
100.00
|
%
|
|||||
Other items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Allowance for loan losses
|
(12,973
|
)
|
|
|
|
(9,671
|
)
|
|
|
|
(5,550
|
)
|
|
|
|
(3,501
|
)
|
|
|
|
(2,478
|
)
|
|
|
||||||||||
Deferred loan costs and discounts
|
(1,150
|
)
|
|
|
|
2,003
|
|
|
|
|
1,090
|
|
|
|
|
915
|
|
|
|
|
165
|
|
|
|
||||||||||
Total loans, net
|
$
|
1,132,914
|
|
|
|
|
$
|
764,582
|
|
|
|
|
$
|
488,207
|
|
|
|
|
$
|
276,528
|
|
|
|
|
$
|
201,434
|
|
|
|
|
1-4 Family
Residential Loans |
|
Home Equity Loans
and Lines of Credit
|
|
Commercial Real
Estate Loans
|
|
Construction
|
||||||||||||||||||||
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||
Due During the Years
Ending December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2015
|
$
|
28
|
|
|
4.74
|
%
|
|
$
|
1
|
|
|
8.00
|
%
|
|
$
|
17,310
|
|
|
3.06
|
%
|
|
$
|
14,694
|
|
|
2.42
|
%
|
2016
|
94
|
|
|
6.07
|
|
|
47
|
|
|
5.00
|
|
|
717
|
|
|
4.84
|
|
|
3,948
|
|
|
3.17
|
|
||||
2017
|
466
|
|
|
5.62
|
|
|
64
|
|
|
6.47
|
|
|
52,130
|
|
|
2.87
|
|
|
20,585
|
|
|
3.73
|
|
||||
2018 to 2019
|
2,702
|
|
|
5.07
|
|
|
108
|
|
|
5.87
|
|
|
88,308
|
|
|
3.02
|
|
|
95
|
|
|
2.91
|
|
||||
2020 to 2024
|
13,490
|
|
|
3.92
|
|
|
1,166
|
|
|
6.07
|
|
|
203,339
|
|
|
3.06
|
|
|
13,116
|
|
|
3.38
|
|
||||
2025 to 2029
|
39,632
|
|
|
3.68
|
|
|
3,600
|
|
|
5.18
|
|
|
12,607
|
|
|
3.31
|
|
|
900
|
|
|
3.38
|
|
||||
2030 and beyond
|
404,129
|
|
|
3.97
|
|
|
56,764
|
|
|
3.44
|
|
|
13,396
|
|
|
3.63
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
460,541
|
|
|
3.95
|
%
|
|
$
|
61,750
|
|
|
3.60
|
%
|
|
$
|
387,807
|
|
|
3.05
|
%
|
|
$
|
53,338
|
|
|
3.25
|
%
|
|
Commercial Business
Loans
|
|
Consumer Loans
|
|
Total Loans
|
|||||||||||||||
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Due During the Years
Ending December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2015
|
$
|
18,337
|
|
|
2.85
|
%
|
|
$
|
264
|
|
|
11.86
|
%
|
|
$
|
50,634
|
|
|
2.84
|
%
|
2016
|
2,685
|
|
|
2.37
|
|
|
62
|
|
|
10.38
|
|
|
7,553
|
|
|
3.15
|
|
|||
2017
|
33,551
|
|
|
2.61
|
|
|
316
|
|
|
6.83
|
|
|
107,112
|
|
|
2.98
|
|
|||
2018 to 2019
|
77,132
|
|
|
3.24
|
|
|
1,483
|
|
|
6.54
|
|
|
169,828
|
|
|
3.19
|
|
|||
2020 to 2024
|
18,618
|
|
|
5.05
|
|
|
15,277
|
|
|
6.25
|
|
|
265,006
|
|
|
3.45
|
|
|||
2025 to 2029
|
1,500
|
|
|
2.91
|
|
|
14,351
|
|
|
5.42
|
|
|
72,590
|
|
|
4.02
|
|
|||
2030 and beyond
|
—
|
|
|
—
|
|
|
25
|
|
|
3.57
|
|
|
474,314
|
|
|
3.90
|
|
|||
Total
|
$
|
151,823
|
|
|
3.26
|
%
|
|
$
|
31,778
|
|
|
5.95
|
%
|
|
$
|
1,147,037
|
|
|
3.56
|
%
|
|
Due After December 31, 2015
|
||||||||||
|
Fixed
|
|
Adjustable
|
|
Total
|
||||||
|
(Dollars in thousands)
|
||||||||||
Real estate loans and lines:
|
|
|
|
|
|
||||||
1-4 family residential
|
$
|
279,298
|
|
|
$
|
181,215
|
|
|
$
|
460,513
|
|
Home equity
|
3,338
|
|
|
58,411
|
|
|
61,749
|
|
|||
Commercial real estate
|
69,171
|
|
|
301,326
|
|
|
370,497
|
|
|||
Construction
|
8,151
|
|
|
30,493
|
|
|
38,644
|
|
|||
Total real estate loans and lines
|
359,958
|
|
|
571,445
|
|
|
931,403
|
|
|||
Commercial business loans
|
16,161
|
|
|
117,325
|
|
|
133,486
|
|
|||
Consumer loans
|
31,514
|
|
|
—
|
|
|
31,514
|
|
|||
Total loans
|
$
|
407,633
|
|
|
$
|
688,770
|
|
|
$
|
1,096,403
|
|
|
For the Years Ended December 31,
|
||||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Originations by type
:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real Estate Loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
1-4 family
|
$
|
154,188
|
|
|
$
|
70,107
|
|
|
$
|
75,988
|
|
|
$
|
45,606
|
|
|
$
|
55,733
|
|
Commercial real estate
|
125,370
|
|
|
142,768
|
|
|
96,558
|
|
|
2,138
|
|
|
—
|
|
|||||
Construction
|
35,991
|
|
|
1,327
|
|
|
3,705
|
|
|
—
|
|
|
—
|
|
|||||
Home equity
|
7,988
|
|
|
3,235
|
|
|
2,096
|
|
|
325
|
|
|
793
|
|
|||||
Total real estate loans
|
323,537
|
|
|
217,437
|
|
|
178,347
|
|
|
48,069
|
|
|
56,526
|
|
|||||
Commercial business loans
|
31,627
|
|
|
50,177
|
|
|
10,928
|
|
|
210
|
|
|
—
|
|
|||||
Consumer loans
|
1,204
|
|
|
132
|
|
|
605
|
|
|
699
|
|
|
826
|
|
|||||
Total loans originated
|
356,368
|
|
|
267,746
|
|
|
189,880
|
|
|
48,978
|
|
|
57,352
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Acquired: (1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Real Estate Loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate
|
57,967
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Home equity
|
39,996
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total real estate loans
|
97,963
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial business loans
|
3,862
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer loans
|
444
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total loans acquired
|
102,269
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases
(2):
|
|
|
|
|
|
|
|
|
|
||||||||||
Real Estate Loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
1-4 family
|
65,091
|
|
|
104,556
|
|
|
89,136
|
|
|
88,006
|
|
|
14,805
|
|
|||||
Commercial real estate
|
—
|
|
|
13,168
|
|
|
19,055
|
|
|
—
|
|
|
240
|
|
|||||
Construction
|
22,262
|
|
|
18,534
|
|
|
494
|
|
|
—
|
|
|
—
|
|
|||||
Home equity
|
—
|
|
|
—
|
|
|
22,304
|
|
|
—
|
|
|
—
|
|
|||||
Total real estate loans
|
87,353
|
|
|
136,258
|
|
|
130,989
|
|
|
88,006
|
|
|
15,045
|
|
|||||
Commercial business loans
|
87,502
|
|
|
88,846
|
|
|
36,469
|
|
|
—
|
|
|
—
|
|
|||||
Consumer loans
|
15,654
|
|
|
17,367
|
|
|
16,906
|
|
|
2,909
|
|
|
—
|
|
|||||
Total loans purchased
|
190,509
|
|
|
242,471
|
|
|
184,364
|
|
|
90,915
|
|
|
15,045
|
|
|||||
Sales
(3):
|
|
|
|
|
|
|
|
|
|
||||||||||
Real Estate Loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
1-4 family
|
(41,417
|
)
|
|
(51,022
|
)
|
|
(24,957
|
)
|
|
(1,623
|
)
|
|
(28,225
|
)
|
|||||
Commercial real estate
|
—
|
|
|
(3,600
|
)
|
|
(15,806
|
)
|
|
—
|
|
|
—
|
|
|||||
Construction
|
(95
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total real estate loans
|
(41,512
|
)
|
|
(54,622
|
)
|
|
(40,763
|
)
|
|
(1,623
|
)
|
|
(28,225
|
)
|
|||||
Commercial business loans
|
(208
|
)
|
|
(11,868
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total loans sold
|
(41,720
|
)
|
|
(66,490
|
)
|
|
(40,763
|
)
|
|
(1,623
|
)
|
|
(28,225
|
)
|
|||||
Principal repayments
:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total principal repayments
|
(218,798
|
)
|
|
(163,394
|
)
|
|
(119,928
|
)
|
|
(62,903
|
)
|
|
(54,909
|
)
|
|||||
Net increase (decrease)
|
$
|
388,628
|
|
|
$
|
280,333
|
|
|
$
|
213,553
|
|
|
$
|
75,367
|
|
|
$
|
(10,737
|
)
|
(1)
|
Includes loans acquired in the Nantucket Bank Acquisition.
|
(2)
|
Includes loan purchases and participations by the Bank in loans originated or syndicated by other financial institutions.
|
(3)
|
Includes loan sales and participations by other financial institutions in loans originated or syndicated by the Bank.
|
|
At December 31,
|
||||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Non-accrual loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
1-4 family
|
$
|
3,876
|
|
|
$
|
1,706
|
|
|
$
|
2,209
|
|
|
$
|
1,437
|
|
|
$
|
1,596
|
|
Home equity loans and lines
|
578
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
27
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total non-accrual loans
|
$
|
4,481
|
|
|
$
|
1,742
|
|
|
$
|
2,209
|
|
|
$
|
1,437
|
|
|
$
|
1,596
|
|
Loans delinquent 90 days or greater and still accruing:
|
|
|
|
|
|
|
|
|
|
||||||||||
1-4 family
|
—
|
|
|
—
|
|
|
—
|
|
|
193
|
|
|
—
|
|
|||||
Commercial real estate
|
—
|
|
|
—
|
|
|
—
|
|
|
1,098
|
|
|
—
|
|
|||||
Total loans delinquent 90 days or greater and still accruing
|
—
|
|
|
—
|
|
|
—
|
|
|
1,291
|
|
|
—
|
|
|||||
Total non-performing assets
|
$
|
4,481
|
|
|
$
|
1,742
|
|
|
$
|
2,209
|
|
|
$
|
2,728
|
|
|
$
|
1,596
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratios:
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-performing loans to total loans
|
0.39
|
%
|
|
0.23
|
%
|
|
0.45
|
%
|
|
0.98
|
%
|
|
0.78
|
%
|
|||||
Non-performing assets to total assets
|
0.26
|
%
|
|
0.13
|
%
|
|
0.18
|
%
|
|
0.28
|
%
|
|
0.18
|
%
|
|
At December 31,
|
||||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Performing troubled debt restructurings
|
$
|
255
|
|
|
$
|
279
|
|
|
$
|
—
|
|
|
$
|
22
|
|
|
$
|
—
|
|
Nonaccrual troubled debt restructurings
|
467
|
|
|
260
|
|
|
568
|
|
|
—
|
|
|
30
|
|
|||||
Total
|
722
|
|
|
539
|
|
|
568
|
|
|
22
|
|
|
30
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Performing troubled debt restructurings as a % of total loans
|
0.02
|
%
|
|
0.04
|
%
|
|
—
|
%
|
|
0.01
|
%
|
|
—
|
%
|
|||||
Nonaccrual troubled debt restructurings as a % of total loans
|
0.04
|
%
|
|
0.03
|
%
|
|
0.12
|
%
|
|
—
|
%
|
|
0.01
|
%
|
|||||
Total troubled debt restructurings as a % of total loans
|
0.06
|
%
|
|
0.07
|
%
|
|
0.12
|
%
|
|
0.01
|
%
|
|
0.01
|
%
|
|
Loans Delinquent For
|
|
Total
|
|||||||||||||||||
|
60-89 Days
|
|
90 Days and Over
|
|
||||||||||||||||
|
Number
|
|
Amount
|
|
Number
|
|
Amount
|
|
Number
|
|
Amount
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
At December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
1-4 Family
|
3
|
|
|
$
|
522
|
|
|
8
|
|
|
$
|
1,370
|
|
|
11
|
|
|
$
|
1,892
|
|
Home equity
|
—
|
|
|
—
|
|
|
1
|
|
|
475
|
|
|
1
|
|
|
475
|
|
|||
Consumer loans
|
—
|
|
|
—
|
|
|
1
|
|
|
5
|
|
|
1
|
|
|
5
|
|
|||
Total loans
|
3
|
|
|
$
|
522
|
|
|
10
|
|
|
$
|
1,850
|
|
|
13
|
|
|
$
|
2,372
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
At December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
1-4 Family
|
2
|
|
|
$
|
196
|
|
|
6
|
|
|
$
|
828
|
|
|
8
|
|
|
$
|
1,024
|
|
Home equity
|
—
|
|
|
—
|
|
|
1
|
|
|
36
|
|
|
1
|
|
|
36
|
|
|||
Total loans
|
2
|
|
|
$
|
196
|
|
|
7
|
|
|
$
|
864
|
|
|
9
|
|
|
$
|
1,060
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
At December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
1-4 Family
|
1
|
|
|
$
|
232
|
|
|
5
|
|
|
$
|
978
|
|
|
6
|
|
|
$
|
1,210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
At December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
1-4 Family
|
1
|
|
|
$
|
156
|
|
|
7
|
|
|
$
|
1,630
|
|
|
8
|
|
|
$
|
1,786
|
|
Construction
|
—
|
|
|
—
|
|
|
1
|
|
|
1,098
|
|
|
1
|
|
|
1,098
|
|
|||
Consumer loans
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|||
Total loans
|
2
|
|
|
$
|
157
|
|
|
8
|
|
|
$
|
2,728
|
|
|
10
|
|
|
$
|
2,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
At December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
1-4 Family
|
1
|
|
|
$
|
298
|
|
|
7
|
|
|
$
|
2,049
|
|
|
8
|
|
|
$
|
2,347
|
|
Consumer loans
|
2
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
4
|
|
|||
Total loans
|
3
|
|
|
$
|
302
|
|
|
7
|
|
|
$
|
2,049
|
|
|
10
|
|
|
$
|
2,351
|
|
|
At December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
|
(In thousands)
|
||||||||||
Classified loans:
|
|
|
|
|
|
||||||
Substandard
|
$
|
1,362
|
|
|
$
|
1,707
|
|
|
$
|
1,286
|
|
Doubtful
|
709
|
|
|
693
|
|
|
646
|
|
|||
Loss
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total classified loans
|
2,071
|
|
|
2,400
|
|
|
1,932
|
|
|||
Special mention
|
4,966
|
|
|
2,819
|
|
|
1,932
|
|
|||
Total criticized loans
|
$
|
7,037
|
|
|
$
|
5,219
|
|
|
$
|
3,864
|
|
|
At or For the Years Ended December 31,
|
||||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Balance at beginning of period
|
$
|
9,671
|
|
|
$
|
5,550
|
|
|
$
|
3,501
|
|
|
$
|
2,478
|
|
|
$
|
3,081
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
1-4 Family
|
(18
|
)
|
|
(165
|
)
|
|
(714
|
)
|
|
(328
|
)
|
|
(1,141
|
)
|
|||||
Consumer loans
|
(61
|
)
|
|
(44
|
)
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|||||
Total charge-offs
|
(79
|
)
|
|
(209
|
)
|
|
(714
|
)
|
|
(341
|
)
|
|
(1,141
|
)
|
|||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
1-4 Family
|
—
|
|
|
236
|
|
|
402
|
|
|
232
|
|
|
36
|
|
|||||
Consumer loans
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|||||
Total recoveries
|
—
|
|
|
236
|
|
|
402
|
|
|
238
|
|
|
36
|
|
|||||
Net (charge-offs) recoveries
|
(79
|
)
|
|
27
|
|
|
(312
|
)
|
|
(103
|
)
|
|
(1,105
|
)
|
|||||
Provision for loan losses
|
3,381
|
|
|
4,094
|
|
|
2,361
|
|
|
1,126
|
|
|
502
|
|
|||||
Balance at end of period
|
$
|
12,973
|
|
|
$
|
9,671
|
|
|
$
|
5,550
|
|
|
$
|
3,501
|
|
|
$
|
2,478
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net charge-offs to average loans outstanding
|
—
|
%
|
|
—
|
%
|
|
(0.08
|
)%
|
|
(0.04
|
)%
|
|
(0.54
|
)%
|
|||||
Allowance for loan losses to non-performing loans at end of period
|
290
|
%
|
|
555
|
%
|
|
251
|
%
|
|
128
|
%
|
|
155
|
%
|
|||||
Allowance for loan losses to total loans at end of period (1)
|
1.13
|
%
|
|
1.25
|
%
|
|
1.13
|
%
|
|
1.25
|
%
|
|
1.21
|
%
|
(1)
|
Total loans do not include deferred costs and discounts.
|
|
At December 31,
|
|||||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||
|
Allowance for
Loan Losses
|
|
Percent of
Loans in Each
Category to
Total Loans
|
|
Allowance for
Loan Losses
|
|
Percent of
Loans in Each
Category to
Total Loans
|
|
Allowance for
Loan Losses
|
|
Percent of
Loans in Each
Category to
Total Loans
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Real Estate:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
1-4 family residential
|
$
|
3,222
|
|
|
40.13
|
%
|
|
$
|
2,835
|
|
|
47.31
|
%
|
|
$
|
2,725
|
|
|
63.27
|
%
|
Home equity
|
340
|
|
|
5.38
|
|
|
247
|
|
|
3.30
|
|
|
316
|
|
|
5.09
|
|
|||
Commercial
|
3,551
|
|
|
33.81
|
|
|
2,608
|
|
|
29.59
|
|
|
1,343
|
|
|
20.48
|
|
|||
Construction
|
1,056
|
|
|
4.67
|
|
|
303
|
|
|
2.14
|
|
|
106
|
|
|
1.17
|
|
|||
Commercial business loans
|
3,410
|
|
|
13.24
|
|
|
2,416
|
|
|
14.38
|
|
|
565
|
|
|
6.85
|
|
|||
Consumer loans
|
736
|
|
|
2.77
|
|
|
574
|
|
|
3.28
|
|
|
313
|
|
|
3.14
|
|
|||
Total allocated allowance
|
$
|
12,315
|
|
|
100.00
|
%
|
|
$
|
8,983
|
|
|
100.00
|
%
|
|
$
|
5,368
|
|
|
100.00
|
%
|
Unallocated
|
658
|
|
|
|
|
688
|
|
|
|
|
182
|
|
|
|
||||||
Total
|
$
|
12,973
|
|
|
|
|
$
|
9,671
|
|
|
|
|
$
|
5,550
|
|
|
|
|
At December 31,
|
||||||||||||
|
2011
|
|
2010
|
||||||||||
|
Allowance for
Loan Losses
|
|
Percent of
Loans in Each
Category to
Total Loans
|
|
Allowance for
Loan Losses
|
|
Percent of
Loans in Each
Category to
Total Loans
|
||||||
|
(Dollars in thousands)
|
||||||||||||
Real Estate:
|
|
|
|
|
|
|
|
||||||
1-4 family residential
|
$
|
3,267
|
|
|
94.64
|
%
|
|
$
|
2,207
|
|
|
94.05
|
%
|
Home equity
|
—
|
|
|
1.05
|
|
|
—
|
|
|
1.49
|
|
||
Commercial
|
160
|
|
|
2.74
|
|
|
221
|
|
|
3.10
|
|
||
Construction
|
—
|
|
|
0.24
|
|
|
—
|
|
|
0.60
|
|
||
Commercial business loans
|
—
|
|
|
0.36
|
|
|
—
|
|
|
0.49
|
|
||
Consumer loans
|
24
|
|
|
0.97
|
|
|
5
|
|
|
0.27
|
|
||
Total allocated allowance
|
$
|
3,451
|
|
|
100.00
|
%
|
|
$
|
2,433
|
|
|
100.00
|
%
|
Unallocated
|
50
|
|
|
|
|
45
|
|
|
|
||||
Total
|
$
|
3,501
|
|
|
|
|
$
|
2,478
|
|
|
|
•
|
Liquidity pool
- The liquidity pool is managed internally. The primary objective of this pool is to place the highest priority on the safety of principal and liquidity. A secondary objective is to maximize income while maintaining acceptable levels of risk and market value volatility as well as to provide adequate short-term liquidity to meet any cash flow demands. Permissible investments in this pool include, among other investments, U.S. Treasury securities, U.S. Government Agency and Government-Sponsored Enterprise debt and mortgage-backed securities, and certain money market portfolios.
|
•
|
Income pool
-
The income pool management is apportioned separately to the Bank’s Treasury function and a third party investment advisor.
The primary investment objective of this pool is to maximize return while maintaining acceptable levels of risk and market value volatility.
The internally managed portion of the pool seeks to maximize income while maintaining high quality intermediate duration primarily through investment in U.S. government and government agency securities.
The third party investment advisor seeks to outperform the Barclays Intermediate Credit Index.
Permissible investments in the externally managed portion of the pool include corporate debt, municipal bonds and asset-backed and commercial mortgage backed securities.
Purchases of securities are limited to securities that would be characterized as investment grade at the time of purchase. Credit quality of the issuers is carefully monitored by the investment manager with continuous management oversight by the Bank.
|
•
|
Total return pool
- The total return pool is comprised of a diverse set of mutual funds selected by the Bank with the guidance of an external institutional investment consultant. The primary objective of this pool is to maximize income and total return via capital appreciation, while conferring benefits of diversification and providing exposure to asset classes that are less correlated with fixed income securities, within the parameters established by the Bank with regard to risk exposure and market value volatility. As of December 31, 2014, the Bank had investments in three different mutual funds, including two global asset allocation funds, and a world stock market index fund.
|
|
At December 31,
|
||||||||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||||||||||||||
|
Amortized
Cost
|
|
Fair Value
|
|
Amortized
Cost
|
|
Fair Value
|
|
Amortized
Cost
|
|
Fair Value
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury
|
$
|
13,037
|
|
|
$
|
13,219
|
|
|
$
|
131,781
|
|
|
$
|
128,202
|
|
|
$
|
108,087
|
|
|
$
|
108,789
|
|
U.S. government agency and government-sponsored enterprise obligations
|
26,335
|
|
|
26,437
|
|
|
13,985
|
|
|
13,957
|
|
|
14,278
|
|
|
14,786
|
|
||||||
U.S. government-sponsored mortgage-backed and collateralized mortgage obligations
|
160,091
|
|
|
160,553
|
|
|
67,787
|
|
|
67,493
|
|
|
109,802
|
|
|
114,158
|
|
||||||
Other mortgage and asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Private label commercial mortgage-backed securities
|
22,100
|
|
|
21,929
|
|
|
22,828
|
|
|
22,674
|
|
|
21,899
|
|
|
22,270
|
|
||||||
Private label residential mortgage-backed securities
|
—
|
|
|
—
|
|
|
3,021
|
|
|
3,383
|
|
|
8,170
|
|
|
8,852
|
|
||||||
SBA asset-backed securities
|
27,765
|
|
|
28,046
|
|
|
9,787
|
|
|
9,394
|
|
|
925
|
|
|
938
|
|
||||||
Other asset-backed securities
|
16,235
|
|
|
16,192
|
|
|
10,974
|
|
|
11,022
|
|
|
19,704
|
|
|
20,028
|
|
||||||
Total other mortgage and asset backed
|
66,100
|
|
|
66,167
|
|
|
46,610
|
|
|
46,473
|
|
|
50,698
|
|
|
52,088
|
|
||||||
Other bonds and obligations:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
State and political subdivisions
|
15,619
|
|
|
16,183
|
|
|
15,628
|
|
|
15,739
|
|
|
17,845
|
|
|
18,588
|
|
||||||
Financial services:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Banks
|
12,364
|
|
|
12,889
|
|
|
12,535
|
|
|
13,350
|
|
|
18,181
|
|
|
19,850
|
|
||||||
Diversified financials
|
15,796
|
|
|
16,132
|
|
|
14,023
|
|
|
14,528
|
|
|
7,055
|
|
|
7,634
|
|
||||||
Insurance and REITs
|
9,387
|
|
|
9,516
|
|
|
15,635
|
|
|
15,793
|
|
|
4,977
|
|
|
5,381
|
|
||||||
Total financial services
|
37,547
|
|
|
38,537
|
|
|
42,193
|
|
|
43,671
|
|
|
30,213
|
|
|
32,865
|
|
||||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Industrials
|
34,408
|
|
|
35,035
|
|
|
32,920
|
|
|
33,450
|
|
|
52,418
|
|
|
55,338
|
|
||||||
Utilities
|
16,873
|
|
|
17,018
|
|
|
12,000
|
|
|
12,086
|
|
|
9,314
|
|
|
9,849
|
|
||||||
Total other corporate
|
51,281
|
|
|
52,053
|
|
|
44,920
|
|
|
45,536
|
|
|
61,732
|
|
|
65,187
|
|
||||||
Total debt securities
|
370,010
|
|
|
373,149
|
|
|
362,904
|
|
|
361,071
|
|
|
392,655
|
|
|
406,461
|
|
||||||
Marketable equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Global equity
|
5,000
|
|
|
5,623
|
|
|
5,000
|
|
|
5,540
|
|
|
27,590
|
|
|
27,182
|
|
||||||
Domestic community
|
3,216
|
|
|
3,297
|
|
|
3,216
|
|
|
3,221
|
|
|
22,777
|
|
|
24,576
|
|
||||||
Global asset allocation
|
32,956
|
|
|
34,378
|
|
|
32,956
|
|
|
37,124
|
|
|
40,210
|
|
|
40,940
|
|
||||||
Diversified bonds
|
—
|
|
|
—
|
|
|
34,392
|
|
|
34,350
|
|
|
33,460
|
|
|
34,626
|
|
||||||
Total marketable equity securities
|
41,172
|
|
|
43,298
|
|
|
75,564
|
|
|
80,235
|
|
|
124,037
|
|
|
127,324
|
|
||||||
Total securities available for sale
|
$
|
411,182
|
|
|
$
|
416,447
|
|
|
$
|
438,468
|
|
|
$
|
441,306
|
|
|
$
|
516,692
|
|
|
$
|
533,785
|
|
|
One Year or Less
|
|
More than One Year
through Five Years
|
|
More than Five Years
through Ten Years
|
|
More than Ten Years
|
|
Total Securities
|
|||||||||||||||||||||||||||||
|
Amortized
Cost
|
|
Weighted
Average
Yield
|
|
Amortized
Cost
|
|
Weighted
Average
Yield
|
|
Amortized
Cost
|
|
Weighted
Average
Yield
|
|
Amortized
Cost
|
|
Weighted
Average
Yield
|
|
Amortized
Cost
|
|
Fair Value
|
|
Weighted
Average
Yield
|
|||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
U.S. Treasury
|
$
|
—
|
|
|
—
|
%
|
|
$
|
598
|
|
|
0.65
|
%
|
|
$
|
12,439
|
|
|
2.00
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
13,037
|
|
|
$
|
13,219
|
|
|
1.94
|
%
|
U.S. government agency and government-sponsored enterprise obligations
|
3,199
|
|
|
0.03
|
|
|
9,280
|
|
|
0.92
|
|
|
8,942
|
|
|
2.64
|
|
|
4,914
|
|
|
2.45
|
|
|
26,335
|
|
|
26,437
|
|
|
1.68
|
|
||||||
U.S. government-sponsored residential mortgage-backed and collateralized mortgage obligations
|
—
|
|
|
—
|
|
|
2,693
|
|
|
0.88
|
|
|
28,781
|
|
|
1.75
|
|
|
128,617
|
|
|
2.09
|
|
|
160,091
|
|
|
160,553
|
|
|
2.01
|
|
||||||
Other mortgage and asset-backed securities
|
—
|
|
|
—
|
|
|
10,238
|
|
|
1.36
|
|
|
5,996
|
|
|
1.65
|
|
|
49,866
|
|
|
2.26
|
|
|
66,100
|
|
|
66,167
|
|
|
2.07
|
|
||||||
Other bonds and obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
State and political subdivisions
|
—
|
|
|
—
|
|
|
5,485
|
|
|
1.06
|
|
|
9,998
|
|
|
1.85
|
|
|
136
|
|
|
3.89
|
|
|
15,619
|
|
|
16,183
|
|
|
1.59
|
|
||||||
Financial services
|
546
|
|
|
1.08
|
|
|
23,244
|
|
|
2.02
|
|
|
13,757
|
|
|
3.16
|
|
|
—
|
|
|
—
|
|
|
37,547
|
|
|
38,537
|
|
|
2.43
|
|
||||||
Other corporate
|
3,334
|
|
|
0.95
|
|
|
22,607
|
|
|
1.93
|
|
|
21,701
|
|
|
3.28
|
|
|
3,639
|
|
|
4.10
|
|
|
51,281
|
|
|
52,053
|
|
|
2.59
|
|
||||||
Total debt securities
|
$
|
7,079
|
|
|
0.55
|
%
|
|
$
|
74,145
|
|
|
1.64
|
%
|
|
$
|
101,614
|
|
|
2.38
|
%
|
|
$
|
187,172
|
|
|
2.19
|
%
|
|
$
|
370,010
|
|
|
$
|
373,149
|
|
|
2.10
|
%
|
|
For the Years Ended December 31,
|
||||||||||||||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||||||||||||||||||||
|
Average
Balance
|
|
Percent
|
|
Weighted
Average
Rate
|
|
Average
Balance
|
|
Percent
|
|
Weighted
Average
Rate
|
|
Average
Balance
|
|
Percent
|
|
Weighted
Average
Rate
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Deposit type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-interest bearing deposits
|
$
|
112,260
|
|
|
9.87
|
%
|
|
—
|
%
|
|
$
|
29,716
|
|
|
3.40
|
%
|
|
—
|
%
|
|
$
|
19,681
|
|
|
2.55
|
%
|
|
—
|
%
|
Interest bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
NOW
|
124,372
|
|
|
10.95
|
|
|
0.05
|
|
|
66,580
|
|
|
7.63
|
|
|
0.06
|
|
|
60,241
|
|
|
7.82
|
|
|
0.11
|
|
|||
Regular savings
|
335,631
|
|
|
29.52
|
|
|
0.44
|
|
|
344,783
|
|
|
39.49
|
|
|
0.47
|
|
|
243,507
|
|
|
31.60
|
|
|
0.81
|
|
|||
Money market
|
207,538
|
|
|
18.25
|
|
|
0.73
|
|
|
81,225
|
|
|
9.30
|
|
|
0.39
|
|
|
105,783
|
|
|
13.73
|
|
|
0.79
|
|
|||
Brokered money market
|
2,572
|
|
|
0.23
|
|
|
0.29
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Certificates of deposit
|
298,944
|
|
|
26.29
|
|
|
1.08
|
|
|
312,596
|
|
|
35.80
|
|
|
1.10
|
|
|
339,122
|
|
|
44.00
|
|
|
1.20
|
|
|||
Brokered certificates of deposit
|
55,585
|
|
|
4.89
|
|
|
0.39
|
|
|
38,265
|
|
|
4.38
|
|
|
0.28
|
|
|
2,331
|
|
|
0.30
|
|
|
0.67
|
|
|||
Total interest bearing deposits
|
1,024,642
|
|
|
90.13
|
|
|
0.64
|
%
|
|
843,449
|
|
|
96.60
|
|
|
0.62
|
%
|
|
750,984
|
|
|
97.45
|
|
|
0.91
|
%
|
|||
Total deposits
|
$
|
1,136,902
|
|
|
100.00
|
%
|
|
0.57
|
%
|
|
$
|
873,165
|
|
|
100.00
|
%
|
|
0.59
|
%
|
|
$
|
770,665
|
|
|
100.00
|
%
|
|
0.88
|
%
|
|
At December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
|
(In thousands)
|
||||||||||
Interest rate range:
|
|
|
|
|
|
||||||
Less than 0.50%
|
$
|
101,162
|
|
|
$
|
118,590
|
|
|
$
|
24,166
|
|
0.50% to 0.99%
|
105,214
|
|
|
56,516
|
|
|
45,579
|
|
|||
1.00% to 1.49%
|
86,406
|
|
|
174,895
|
|
|
208,041
|
|
|||
1.50% to 1.99%
|
14,829
|
|
|
23,322
|
|
|
32,743
|
|
|||
2.00% to 2.99%
|
52,849
|
|
|
15,018
|
|
|
21,053
|
|
|||
3.00% and greater
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
$
|
360,460
|
|
|
$
|
388,341
|
|
|
$
|
331,582
|
|
|
At December 31, 2014
|
|||||||||||||||||||||
|
Period to Maturity
|
|||||||||||||||||||||
|
Less Than
or Equal to
One Year
|
|
More Than
One to
Two Years
|
|
More Than
Two to
Three Years
|
|
More Than
Three Years
|
|
Total
|
|
Percent of
Total
|
|||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||
Interest rate range:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Less than 0.50%
|
$
|
100,373
|
|
|
$
|
639
|
|
|
$
|
50
|
|
|
$
|
100
|
|
|
$
|
101,162
|
|
|
28.07
|
%
|
0.50% to 0.99%
|
62,372
|
|
|
30,807
|
|
|
8,086
|
|
|
3,949
|
|
|
105,214
|
|
|
29.19
|
|
|||||
1.00% to 1.49%
|
28,027
|
|
|
9,220
|
|
|
36,354
|
|
|
12,805
|
|
|
86,406
|
|
|
23.97
|
|
|||||
1.50% to 1.99%
|
701
|
|
|
2,571
|
|
|
10,080
|
|
|
1,477
|
|
|
14,829
|
|
|
4.11
|
|
|||||
2.00% to 2.99%
|
2,025
|
|
|
15,311
|
|
|
154
|
|
|
35,359
|
|
|
52,849
|
|
|
14.66
|
|
|||||
3.00% and greater
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
$
|
193,498
|
|
|
$
|
58,548
|
|
|
$
|
54,724
|
|
|
$
|
53,690
|
|
|
$
|
360,460
|
|
|
100.00
|
%
|
|
At December 31, 2014
|
||
|
(In thousands)
|
||
Maturing in:
|
|
||
Three months or less
|
$
|
20,013
|
|
Over three months through six months
|
21,673
|
|
|
Over six months through one year
|
24,502
|
|
|
Over one year to three years
|
45,105
|
|
|
Over three years
|
31,276
|
|
|
Total
|
$
|
142,569
|
|
|
At or For the Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
|
(In thousands)
|
||||||||||
Balance at end of period
|
$
|
75,000
|
|
|
$
|
215,000
|
|
|
$
|
152,000
|
|
Average balance during period
|
149,841
|
|
|
127,501
|
|
|
102,266
|
|
|||
Maximum outstanding at any month end
|
215,000
|
|
|
215,000
|
|
|
160,000
|
|
|||
Weighted average interest rate at end of period
|
1.25
|
%
|
|
0.61
|
%
|
|
0.81
|
%
|
|||
Average interest rate during period
|
0.94
|
%
|
|
0.92
|
%
|
|
1.09
|
%
|
•
|
Truth-In-Lending Act, governing disclosures of credit terms to consumer borrowers;
|
•
|
Real Estate Settlement Procedures Act, requiring that borrowers for mortgage loans for one- to four-family residential real estate receive various disclosures, including good faith estimates of settlement costs, lender servicing and escrow account practices, and prohibiting certain practices that increase the cost of settlement services;
|
•
|
Home Mortgage Disclosure Act, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves;
|
•
|
Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, creed, or other prohibited factors in extending credit;
|
•
|
Fair Credit Reporting Act, governing the use and provision of information to credit reporting agencies; and
|
•
|
Fair Debt Collection Act, governing the manner in which consumer debts may be collected by collection agencies.
|
•
|
Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records;
|
•
|
Electronic Funds Transfer Act and Regulation E promulgated thereunder, that govern automatic deposits to and withdrawals from deposit accounts and customers’ rights and liabilities arising from the use of automated teller machines and other electronic banking services;
|
•
|
Gramm-Leach-Bliley Act privacy statute which requires each depository institution to disclose its privacy policy, identify parties with whom certain nonpublic customer information is shared and provide customers with certain rights to “opt out” of disclosure to certain third parties; and
|
•
|
Title III of The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (referred to as the “USA PATRIOT Act”), which significantly expanded the responsibilities of financial institutions, in preventing the use of the United States financial system to fund terrorist activities. Among other things, the USA PATRIOT Act and the related regulations required banks operating in the United States to develop anti-money laundering compliance programs, due diligence policies and controls to facilitate the detection and reporting of money laundering.
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 1B.
|
UNRESOLVED STAFF COMMENTS
|
ITEM 2.
|
PROPERTIES
|
Office Name and Address
|
Leased or Owned
|
|
Year Acquired or
Leased
|
|
Month of lease
expiration
|
|
|
|
|
|
|
Full Service Banking Offices:
|
|
|
|
|
|
Blue Hills Bank – River Street (Main Office)
1196 River Street
Hyde Park, MA 02136
|
Owned (1)
|
|
1871
|
|
|
Blue Hills Bank – Truman
1065 Truman Parkway
Hyde Park, MA 02136
|
Owned/Leased (2)
|
|
1977
|
|
March 2021
|
Blue Hills Bank – Brookline
1337 Beacon Street
Brookline, MA 02446
|
Leased
|
|
2007
|
|
February 2017
|
Blue Hills Bank – Dedham
749 Providence Highway
Dedham, MA 02026
|
Leased
|
|
1988
|
|
May 2016
|
Blue Hills Bank – Norwood
111 Lenox Street
Norwood, MA 02062
|
Leased
|
|
1998
|
|
October 2016
|
Blue Hills Bank – West Roxbury
1920 Centre Street West
Roxbury, MA 02132
|
Leased
|
|
2004
|
|
February 2019
|
Blue Hills Bank – Milton
480 Adams Street Milton, MA 02186 |
Leased
|
|
2014
|
|
September 2023
|
Nantucket Bank – Pleasant Street
104 Pleasant Street
Nantucket, MA 02554
|
Owned
|
|
2014
|
|
|
Nantucket Bank – Orange Street
2 Orange Street
Nantucket, MA 02554
|
Owned
|
|
2014
|
|
|
Nantucket Bank – Amelia Drive
1 Amelia Drive
Nantucket, MA 02554
|
Owned
|
|
2014
|
|
|
Administrative and Other Facilities:
|
|
|
|
|
|
Blue Hills Bank (3)
81 Newbury St., 2nd Floor
Boston, MA 02115
|
Leased
|
|
2014
|
|
March 2016
|
Blue Hills Bank (3)
10 Cordage Park Circle, Suite 222 Plymouth, MA 02360 |
Leased
|
|
2014
|
|
December 2019
|
320 Norwood Park South
Norwood, MA 02062
|
Leased
|
|
2011
|
|
November 2016
|
9 Bayberry Court
Nantucket, MA 02554
|
Owned
|
|
2014
|
|
|
3 Madison Court
Nantucket, MA 02554
|
Owned
|
|
2014
|
|
|
_________________________
(1) We lease 1,500 square feet of additional office space adjacent to this location at 1202 River Street. This lease expires in March 2021.
(2) This office building is owned and located on land that is leased.
(3) This property is used as a loan production office.
|
ITEM 3.
|
LEGAL PROCEEDINGS
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
ITEM 5.
|
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
2014
|
High
|
Low
|
Dividends Declared
|
||||||
Fourth quarter
|
$
|
13.74
|
|
$
|
11.25
|
|
$
|
—
|
|
Third quarter (from July 22, 2014)
|
$
|
13.60
|
|
$
|
12.15
|
|
—
|
|
|
Second quarter
|
N/A
|
|
N/A
|
|
—
|
|
|||
First quarter
|
N/A
|
|
N/A
|
|
—
|
|
|
Period Ending
|
|||||||||||||
Index
|
7/22/2014
|
|
7/31/2014
|
|
8/31/2014
|
|
9/30/2014
|
|
10/31/2014
|
|
11/30/2014
|
|
12/31/2014
|
|
Blue Hills Bancorp, Inc.
|
100.00
|
|
100.16
|
|
104.12
|
|
105.98
|
|
107.67
|
|
106.79
|
|
109.69
|
|
Russell 2000
|
100.00
|
|
96.90
|
|
101.71
|
|
95.56
|
|
101.85
|
|
101.95
|
|
104.85
|
|
SNL Thrift $1B-$5B
|
100.00
|
|
100.15
|
|
103.36
|
|
99.14
|
|
106.12
|
|
104.79
|
|
107.95
|
|
|
At December 31,
|
||||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Selected Financial Condition Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
1,728,148
|
|
|
$
|
1,314,287
|
|
|
$
|
1,228,636
|
|
|
$
|
970,674
|
|
|
$
|
910,689
|
|
Cash and cash equivalents
|
60,146
|
|
|
40,316
|
|
|
73,819
|
|
|
87,331
|
|
|
111,759
|
|
|||||
Securities available for sale
|
416,447
|
|
|
441,306
|
|
|
533,785
|
|
|
547,475
|
|
|
543,890
|
|
|||||
Loans receivable, net
|
1,132,914
|
|
|
764,582
|
|
|
488,207
|
|
|
276,528
|
|
|
202,016
|
|
|||||
Federal Home Loan Bank stock
|
11,702
|
|
|
10,766
|
|
|
9,669
|
|
|
3,846
|
|
|
3,293
|
|
|||||
Bank-owned life insurance
|
30,595
|
|
|
29,831
|
|
|
33,344
|
|
|
32,220
|
|
|
31,178
|
|
|||||
Deposits
|
1,212,716
|
|
|
915,223
|
|
|
817,877
|
|
|
756,481
|
|
|
754,228
|
|
|||||
Borrowings
|
75,000
|
|
|
215,000
|
|
|
154,424
|
|
|
40,000
|
|
|
—
|
|
|||||
Total equity
|
411,606
|
|
|
171,534
|
|
|
176,938
|
|
|
163,832
|
|
|
144,784
|
|
|
Years ended December 31,
|
||||||||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Selected Operating Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and dividend income
|
$
|
49,275
|
|
|
$
|
33,092
|
|
|
$
|
31,816
|
|
|
$
|
31,995
|
|
|
$
|
34,186
|
|
Interest expense
|
6,898
|
|
|
7,971
|
|
|
8,372
|
|
|
8,938
|
|
|
12,083
|
|
|||||
Net interest income
|
42,377
|
|
|
25,121
|
|
|
23,444
|
|
|
23,057
|
|
|
22,103
|
|
|||||
Provision for loan losses
|
3,381
|
|
|
4,094
|
|
|
2,361
|
|
|
1,126
|
|
|
502
|
|
|||||
Net interest income, after provision for loan losses
|
38,996
|
|
|
21,027
|
|
|
21,083
|
|
|
21,931
|
|
|
21,601
|
|
|||||
Realized securities gains and impairment losses, net
|
2,515
|
|
|
4,999
|
|
|
11,931
|
|
|
5,557
|
|
|
25,677
|
|
|||||
Other non interest income
|
7,092
|
|
|
8,012
|
|
|
4,235
|
|
|
3,644
|
|
|
3,236
|
|
|||||
Total noninterest income
|
9,607
|
|
|
13,011
|
|
|
16,166
|
|
|
9,201
|
|
|
28,913
|
|
|||||
Noninterest expenses
|
49,408
|
|
|
31,659
|
|
|
26,283
|
|
|
21,041
|
|
|
17,362
|
|
|||||
Income (loss) before income taxes
|
(805
|
)
|
|
2,379
|
|
|
10,966
|
|
|
10,091
|
|
|
33,152
|
|
|||||
Provision (benefit) for income taxes
|
(622
|
)
|
|
(284
|
)
|
|
3,112
|
|
|
2,530
|
|
|
3,542
|
|
|||||
Net income (loss)
|
$
|
(183
|
)
|
|
$
|
2,663
|
|
|
$
|
7,854
|
|
|
$
|
7,561
|
|
|
$
|
29,610
|
|
|
At or For the Years Ended December 31,
|
|||||||||||||
|
2014
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|||||
Selected Financial Ratios and Other Data:
|
|
|
|
|
|
|
|
|
|
|||||
Performance Ratios:
|
|
|
|
|
|
|
|
|
|
|||||
Return on average assets (ratio of net income to average total assets)
|
(0.01
|
)%
|
|
0.22
|
%
|
|
0.74
|
%
|
|
0.82
|
%
|
|
3.21
|
%
|
Return on average equity (ratio of net income to average equity)
|
(0.07
|
)%
|
|
1.52
|
%
|
|
4.57
|
%
|
|
5.01
|
%
|
|
18.48
|
%
|
Interest rate spread (1)
|
2.64
|
%
|
|
2.09
|
%
|
|
2.18
|
%
|
|
2.51
|
%
|
|
2.39
|
%
|
Net interest margin (2)
|
2.78
|
%
|
|
2.21
|
%
|
|
2.33
|
%
|
|
2.68
|
%
|
|
2.57
|
%
|
Efficiency ratio (3)
|
95.00
|
%
|
|
83.02
|
%
|
|
66.35
|
%
|
|
65.23
|
%
|
|
34.03
|
%
|
Noninterest expense to average total assets
|
3.07
|
%
|
|
2.65
|
%
|
|
2.46
|
%
|
|
2.29
|
%
|
|
1.88
|
%
|
Average interest-earning assets to average interest-bearing liabilities
|
129.81
|
%
|
|
117.24
|
%
|
|
117.88
|
%
|
|
116.51
|
%
|
|
112.38
|
%
|
Average equity to average total assets
|
17.41
|
%
|
|
14.68
|
%
|
|
16.11
|
%
|
|
16.43
|
%
|
|
17.39
|
%
|
Asset Quality Ratios:
|
|
|
|
|
|
|
|
|
|
|||||
Non-performing assets to total assets
|
0.26
|
%
|
|
0.13
|
%
|
|
0.18
|
%
|
|
0.28
|
%
|
|
0.18
|
%
|
Non-performing loans to total loans
|
0.39
|
%
|
|
0.23
|
%
|
|
0.45
|
%
|
|
0.98
|
%
|
|
0.78
|
%
|
Allowance for loan losses to non-performing loans
|
290
|
%
|
|
555
|
%
|
|
251
|
%
|
|
128
|
%
|
|
155
|
%
|
Allowance for loan losses to total loans
|
1.13
|
%
|
|
1.25
|
%
|
|
1.13
|
%
|
|
1.25
|
%
|
|
1.21
|
%
|
Consolidated Capital Ratios:
|
|
|
|
|
|
|
|
|
|
|||||
Total capital to risk-weighted assets
|
32.60
|
%
|
|
19.80
|
%
|
|
21.70
|
%
|
|
30.50
|
%
|
|
N/A
|
|
Tier 1 capital to risk-weighted assets
|
31.49
|
%
|
|
18.50
|
%
|
|
20.80
|
%
|
|
29.80
|
%
|
|
N/A
|
|
Tier 1 capital to average assets
|
23.29
|
%
|
|
13.20
|
%
|
|
14.40
|
%
|
|
16.20
|
%
|
|
N/A
|
|
Capital Ratios for the Bank:
|
|
|
|
|
|
|
|
|
|
|||||
Total capital to risk-weighted assets
|
22.68
|
%
|
|
16.60
|
%
|
|
18.60
|
%
|
|
28.60
|
%
|
|
35.6
|
%
|
Tier 1 capital to risk-weighted assets
|
21.57
|
%
|
|
15.30
|
%
|
|
17.70
|
%
|
|
27.90
|
%
|
|
34.8
|
%
|
Tier 1 capital to average assets
|
15.92
|
%
|
|
11.10
|
%
|
|
12.20
|
%
|
|
15.10
|
%
|
|
15.2
|
%
|
Other Data:
|
|
|
|
|
|
|
|
|
|
|||||
Number of full service offices
|
10
|
|
|
6
|
|
|
6
|
|
|
6
|
|
|
6
|
|
Number of full time equivalent employees
|
202
|
|
|
147
|
|
|
141
|
|
|
122
|
|
|
103
|
|
(1)
|
The average interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities for the period.
|
(2)
|
The net interest margin represents net interest income as a percent of average interest-earning assets for the period on a non tax equivalent basis.
|
(3)
|
The efficiency ratio represents noninterest expense divided by the sum of net interest income and noninterest income, including gains on securities available for sale, net.
|
ITEM 7.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
Successfully completed the mutual to stock conversion in July. The Company sold 27,772,500 shares of common stock, representing the adjusted maximum of the offering range, at $10.00 per share, for gross offering proceeds of $277,725,000, including the sale of 2,277,345 shares to the employee stock ownership plan. Additionally, 694,313 shares of Company common stock and $57,000 in cash were contributed to the Blue Hills Bank Foundation in connection with the conversion and offering.
|
•
|
Acquired Nantucket Bank in January and successfully completed the integration. Despite the normal seasonal decline experienced in the fourth quarter, Nantucket deposits were up slightly at the end of 2014 from $274.6 million on the acquisition date.
|
•
|
Loans increased 48.2% to $1.1 billion at December 31, 2014 from the end of 2013 as the Company continued to execute on its balance sheet diversification strategy through an expansion of the residential mortgage, commercial real estate and commercial business loan portfolios. The acquisition of Nantucket Bank, in January 2014, attributed to $97.5 million, or 26.5%, of the $368.3 million increase in loans.
|
•
|
Continued to expand the geographic reach of the commercial lending business by hiring a new lending team to cover the South Shore and South Coast areas of Massachusetts (a new loan production office was opened in Plymouth, Massachusetts in January 2015).
|
•
|
Over the past few years, the Company has expanded the capabilities of its residential mortgage department. In 2014, residential mortgages originated by the department totaled $154.2 million, representing an increase of 119.9% from 2013. Also in 2014, the department also originated approximately $16.0 million of construction and commercial real estate loans and there was another $65.1 million of residential mortgages originated by third parties that were purchased by the Company.
|
•
|
Maintained strong asset quality with net charge-offs for the year equal to 0.00% of average loans. The reserve/loans ratio was 1.13% and the reserve/non-performing assets ratio was 274% at December 31, 2014.
|
•
|
Reduced the overall cost of interest-bearing deposits to 0.56% for the year ended December 31, 2014 from 0.81% for the year ended December 31, 2013. This helped net interest margin improve to 2.78% for the year ended December 31, 2014 from 2.21% in the prior year.
|
•
|
In July, the Company redeemed the $18.7 million of Series A Preferred Stock issued to the U.S. Treasury under the Small Business Lending Fund (SBLF) preferred stock program.
|
•
|
Continued the expansion of the Company's brand by obtaining the naming rights to the Blue Hills Bank Pavilion concert venue in the Seaport District of Boston.
|
•
|
Opened a new branch office in Milton, Massachusetts in October. Deposits at the branch rose to $15 million at December 31, 2014.
|
•
|
During the course of 2014, donations in excess of $1.0 million were made to various non-profits reflecting the Company's active involvement in the communities it serves. The bulk of the donations were made through the Blue Hills Bank foundations which support nonprofits in the fields of education and the arts, health and human services, affordable housing and community services.
|
•
|
The Company's stock was added to the Russell 2000 Index at the end of September and to the ABA NASDAQ Community Bank Index at the beginning of December.
|
•
|
A pre-tax expense of $7,000,000 for the year ended December 31, 2014 related to the Company's funding of a new charitable foundation at the time of the mutual to stock conversion that was completed on July 21, 2014.
|
•
|
A pre-tax pension curtailment gain of $1,304,000 for the year ended December 31, 2014 related to the Company's decision to freeze its defined benefit pension plan as of October 31, 2014.
|
•
|
Pre-tax expenses of $869,000 for year ended December 31, 2014 and $184,000 for the year ended December 31, 2013 related to the Company's mutual to stock conversion.
|
•
|
Pre-tax expenses of $950,000 for the year ended December 31, 2014 and $583,000 for the year ended December 31, 2013 related to the January 2014 Nantucket Bank acquisition.
|
•
|
A pre-tax expense of $1,677,000 for the year ended December 31, 2013 related to the restructuring of incentive and benefit plans.
|
•
|
Pre-tax gains of $182,000 for the year ended December 31, 2014 and $1,872,000 for the year ended December 31, 2013 related to death benefits received on bank-owned life insurance.
|
|
For the Year Ended December 31, 2014
|
|||||||||
|
Average
Outstanding
Balance
|
|
Interest
|
|
Yield / Cost
|
|||||
|
(in thousands)
|
|||||||||
Interest-earning assets:
|
|
|
|
|
|
|||||
Total loans
|
$
|
1,022,128
|
|
|
$
|
37,382
|
|
|
3.66
|
%
|
Securities
|
424,190
|
|
|
11,589
|
|
|
2.73
|
|
||
Other interest earning assets
(1)
|
78,260
|
|
|
304
|
|
|
0.39
|
|
||
Total interest-earning assets
|
1,524,578
|
|
|
49,275
|
|
|
3.23
|
|
||
Non-interest-earning assets
|
87,137
|
|
|
|
|
|
||||
Total assets
|
$
|
1,611,715
|
|
|
|
|
|
|||
Interest-bearing liabilities:
|
|
|
|
|
|
|||||
NOW accounts
|
$
|
124,372
|
|
|
$
|
103
|
|
|
0.08
|
%
|
Regular savings accounts
|
335,631
|
|
|
1,372
|
|
|
0.41
|
|
||
Money market accounts
|
210,110
|
|
|
1,199
|
|
|
0.57
|
|
||
Certificates of deposit
|
354,529
|
|
|
3,076
|
|
|
0.87
|
|
||
Total interest-bearing deposits
|
1,024,642
|
|
|
5,750
|
|
|
0.56
|
|
||
Borrowings
|
149,841
|
|
|
1,148
|
|
|
0.77
|
|
||
Total interest-bearing liabilities
|
1,174,483
|
|
|
6,898
|
|
|
0.59
|
|
||
Non-interest-bearing deposits
|
112,260
|
|
|
|
|
|
||||
Other non-interest-bearing liabilities
|
44,354
|
|
|
|
|
|
||||
Total liabilities
|
1,331,097
|
|
|
|
|
|
||||
Equity
|
280,618
|
|
|
|
|
|
||||
Total liabilities and equity
|
$
|
1,611,715
|
|
|
|
|
|
|||
Net interest and dividend income
|
|
|
$
|
42,377
|
|
|
|
|||
Net interest rate spread
(2)
|
|
|
|
|
2.64
|
%
|
||||
Net interest-earning assets
(3)
|
$
|
350,095
|
|
|
|
|
|
|||
Net interest margin
(4)
|
|
|
|
|
2.78
|
%
|
||||
Average interest-earning assets to interest-bearing liabilities
|
129.81
|
%
|
|
|
|
|
||||
Total cost of deposits
|
|
|
|
|
0.51
|
%
|
|
For the Years Ended December 31,
|
||||||||||||||||||||
|
2013
|
|
2012
|
||||||||||||||||||
|
Average
Outstanding
Balance
|
|
Interest
|
|
Yield/
Cost
|
|
Average
Outstanding
Balance
|
|
Interest
|
|
Yield/
Cost
|
||||||||||
|
(in thousands)
|
||||||||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total loans
|
$
|
591,990
|
|
|
$
|
21,876
|
|
|
3.70
|
%
|
|
$
|
384,432
|
|
|
$
|
16,545
|
|
|
4.30
|
%
|
Securities
|
500,499
|
|
|
11,114
|
|
|
2.22
|
|
|
565,584
|
|
|
15,151
|
|
|
2.68
|
|
||||
Other interest earning assets
(1)
|
45,828
|
|
|
102
|
|
|
0.22
|
|
|
55,768
|
|
|
120
|
|
|
0.22
|
|
||||
Total interest-earning assets
|
1,138,317
|
|
|
33,092
|
|
|
2.91
|
|
|
1,005,784
|
|
|
31,816
|
|
|
3.16
|
|
||||
Non-interest-earning assets
|
55,958
|
|
|
|
|
|
|
60,862
|
|
|
|
|
|
||||||||
Total assets
|
$
|
1,194,275
|
|
|
|
|
|
|
$
|
1,066,646
|
|
|
|
|
|
||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NOW accounts
|
$
|
66,580
|
|
|
$
|
68
|
|
|
0.10
|
%
|
|
60,241
|
|
|
$
|
80
|
|
|
0.13
|
%
|
|
Regular savings accounts
|
344,783
|
|
|
2,420
|
|
|
0.70
|
|
|
243,507
|
|
|
1,756
|
|
|
0.72
|
|
||||
Money market accounts
|
81,225
|
|
|
531
|
|
|
0.65
|
|
|
105,783
|
|
|
893
|
|
|
0.84
|
|
||||
Certificates of deposit
|
350,861
|
|
|
3,784
|
|
|
1.08
|
|
|
341,453
|
|
|
4,530
|
|
|
1.33
|
|
||||
Total interest-bearing deposits
|
843,449
|
|
|
6,803
|
|
|
0.81
|
|
|
750,984
|
|
|
7,259
|
|
|
0.97
|
|
||||
Borrowings
|
127,501
|
|
|
1,168
|
|
|
0.92
|
|
|
102,266
|
|
|
1,113
|
|
|
1.09
|
|
||||
Total interest-bearing liabilities
|
970,950
|
|
|
7,971
|
|
|
0.82
|
|
|
853,250
|
|
|
8,372
|
|
|
0.98
|
|
||||
Non-interest-bearing deposits
|
29,716
|
|
|
|
|
|
|
19,681
|
|
|
|
|
|
||||||||
Other non-interest-bearing liabilities
|
18,279
|
|
|
|
|
|
|
21,921
|
|
|
|
|
|
||||||||
Total liabilities
|
1,018,945
|
|
|
|
|
|
|
894,852
|
|
|
|
|
|
||||||||
Equity
|
175,330
|
|
|
|
|
|
|
171,794
|
|
|
|
|
|
||||||||
Total liabilities and equity
|
$
|
1,194,275
|
|
|
|
|
|
|
$
|
1,066,646
|
|
|
|
|
|
||||||
Net interest and dividend income
|
|
|
$
|
25,121
|
|
|
|
|
|
|
$
|
23,444
|
|
|
|
||||||
Net interest rate spread
(2)
|
|
|
|
|
2.09
|
%
|
|
|
|
|
|
2.18
|
%
|
||||||||
Net interest-earning assets
(3)
|
$
|
167,367
|
|
|
|
|
|
|
$
|
152,534
|
|
|
|
|
|
||||||
Net interest margin
(4)
|
|
|
|
|
2.21
|
%
|
|
|
|
|
|
2.33
|
%
|
||||||||
Average interest-earning assets to interest-bearing liabilities
|
117.24
|
%
|
|
|
|
|
|
117.88
|
%
|
|
|
|
|
||||||||
Total cost of deposits
|
|
|
|
|
0.78
|
%
|
|
|
|
|
|
0.94
|
%
|
(1)
|
Includes Federal Home Loan Bank stock and short-term investments.
|
(2)
|
Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
|
(3)
|
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
|
(4)
|
Net interest margin represents net interest and dividend income as a percentage of average interest-earning assets.
|
|
Year Ended December 31,
2014 vs. 2013 |
||||||||||
|
Increase (Decrease)
Due to
|
|
Total
Increase
(Decrease)
|
||||||||
|
Volume
|
|
Rate
|
|
|||||||
Interest-earning assets:
|
|
|
|
|
|
||||||
Loans
|
$
|
15,746
|
|
|
$
|
(240
|
)
|
|
$
|
15,506
|
|
Securities
|
(1,541
|
)
|
|
2,016
|
|
|
475
|
|
|||
Other
|
46
|
|
|
156
|
|
|
202
|
|
|||
Total interest-earning assets
|
$
|
14,251
|
|
|
$
|
1,932
|
|
|
$
|
16,183
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
||||||
NOW accounts
|
$
|
50
|
|
|
$
|
(15
|
)
|
|
$
|
35
|
|
Savings
|
(63
|
)
|
|
(985
|
)
|
|
(1,048
|
)
|
|||
Money market
|
741
|
|
|
(73
|
)
|
|
668
|
|
|||
Certificates of Deposit
|
39
|
|
|
(747
|
)
|
|
(708
|
)
|
|||
Total interest-bearing deposits
|
767
|
|
|
(1,820
|
)
|
|
(1,053
|
)
|
|||
Borrowings
|
188
|
|
|
(208
|
)
|
|
(20
|
)
|
|||
Total interest-bearing liabilities
|
$
|
955
|
|
|
$
|
(2,028
|
)
|
|
$
|
(1,073
|
)
|
Change in net interest and dividend income
|
$
|
13,296
|
|
|
$
|
3,960
|
|
|
$
|
17,256
|
|
|
Year Ended December 31,
2013 vs. 2012 |
||||||||||
|
Increase (Decrease)
Due to
|
|
Total
Increase
(Decrease)
|
||||||||
|
Volume
|
|
Rate
|
|
|||||||
Interest-earning assets:
|
|
|
|
|
|
||||||
Loans
|
$
|
7,222
|
|
|
$
|
(1,891
|
)
|
|
$
|
5,331
|
|
Securities
|
(1,620
|
)
|
|
(2,417
|
)
|
|
(4,037
|
)
|
|||
Other
|
(18
|
)
|
|
—
|
|
|
(18
|
)
|
|||
Total interest-earning assets
|
$
|
5,584
|
|
|
$
|
(4,308
|
)
|
|
$
|
1,276
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
||||||
NOW accounts
|
$
|
10
|
|
|
$
|
(22
|
)
|
|
$
|
(12
|
)
|
Savings accounts
|
710
|
|
|
(46
|
)
|
|
664
|
|
|||
Money market
|
(184
|
)
|
|
(178
|
)
|
|
(362
|
)
|
|||
Certificates of Deposit
|
129
|
|
|
(875
|
)
|
|
(746
|
)
|
|||
Total interest-bearing deposits
|
665
|
|
|
(1,121
|
)
|
|
(456
|
)
|
|||
Borrowings
|
153
|
|
|
(98
|
)
|
|
55
|
|
|||
Total interest-bearing liabilities
|
$
|
818
|
|
|
$
|
(1,219
|
)
|
|
$
|
(401
|
)
|
Change in net interest and dividend income
|
$
|
4,766
|
|
|
$
|
(3,089
|
)
|
|
$
|
1,677
|
|
•
|
A $1.6 million increase in dividend income due to a higher level of dividends received on mutual fund investments.
|
•
|
A significant increase in noninterest-bearing funds as average equity increased $105.3 million, or 60.1%, to $280.6 million due to the Company's mutual to stock conversion and average noninterest-bearing deposits increased $82.5 million, or 277.8%, to $112.3 million.
|
•
|
A 23 basis point decline in the cost of interest-bearing liabilities to 0.59% in 2014.
|
•
|
Purchase accounting accretion related to the January 2014 Nantucket Bank acquisition which contributed $1.2 million to net interest income and approximately 20 basis points to net interest margin in 2014.
|
•
|
A $7.0 million expense in 2014 related to the Company's funding of a new charitable foundation that was set up at the time of the July 2014 mutual-to-stock conversion.
|
•
|
The January 2014 Nantucket Bank acquisition which caused a $6.4 million increase in expenses in 2014 compared to 2013, taking into account operating expenses, core deposit intangible amortization, and one-time acquisition costs.
|
•
|
A $993,000 million expense in 2014 related to the implementation of the employee stock ownership plan.
|
•
|
A $685,000 increase in expenses related to the mutual-to-stock conversion.
|
•
|
Higher advertising of approximately $600,000 as the Company increased brand awareness, including obtaining the naming rights to the Blue Hills Bank Pavilion concert venue in the Seaport District of Boston.
|
Change in Interest
Rates (basis points) (1)
|
|
Change in Net Interest Income
Year One
(% Change From Year One Base)
|
+200
|
|
2.25%
|
-100
|
|
(0.02)%
|
(1)
|
The calculated change in net interest income assumes a gradual parallel shift across the yield curve over a one-year period.
|
|
December 31, 2014
|
||||||||||||||||||
|
One year or less
|
|
More than one year to three years
|
|
More than three years to five years
|
|
More than five years
|
|
Total
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Federal Home Loan Bank of Boston advances
|
$
|
—
|
|
|
$
|
25,000
|
|
|
$
|
10,000
|
|
|
$
|
—
|
|
|
$
|
35,000
|
|
Certificates of deposit
|
193,498
|
|
|
113,272
|
|
|
53,690
|
|
|
—
|
|
|
360,460
|
|
|||||
Operating leases
|
1,221
|
|
|
2,246
|
|
|
1,452
|
|
|
3,626
|
|
|
8,545
|
|
|||||
Music venue naming rights
|
410
|
|
|
881
|
|
|
972
|
|
|
2,253
|
|
|
4,516
|
|
|||||
Total contractual obligations
|
$
|
195,129
|
|
|
$
|
141,399
|
|
|
$
|
66,114
|
|
|
$
|
5,879
|
|
|
$
|
408,521
|
|
ITEM 8.
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
|
Page
|
Report of Independent Registered Public Accounting Firm
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
(In thousands, except share data)
|
|
||||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
15,345
|
|
|
$
|
8,151
|
|
Short-term investments
|
44,801
|
|
|
32,165
|
|
||
Total cash and cash equivalents
|
60,146
|
|
|
40,316
|
|
||
Trading assets
|
—
|
|
|
750
|
|
||
Securities available for sale, at fair value
|
416,447
|
|
|
441,306
|
|
||
Federal Home Loan Bank stock, at cost
|
11,702
|
|
|
10,766
|
|
||
Loans held for sale
|
14,591
|
|
|
765
|
|
||
Loans, net of allowance for loan losses of $12,973 in 2014 and $9,671 in 2013
|
1,132,914
|
|
|
764,582
|
|
||
Premises and equipment, net
|
18,788
|
|
|
7,478
|
|
||
Accrued interest receivable
|
4,433
|
|
|
4,290
|
|
||
Goodwill
|
9,160
|
|
|
—
|
|
||
Core deposit intangible
|
4,232
|
|
|
—
|
|
||
Net deferred tax asset
|
6,233
|
|
|
2,831
|
|
||
Bank-owned life insurance
|
30,595
|
|
|
29,831
|
|
||
Other assets
|
18,907
|
|
|
11,372
|
|
||
|
$
|
1,728,148
|
|
|
$
|
1,314,287
|
|
Liabilities and Equity
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Non-interest bearing
|
$
|
123,392
|
|
|
$
|
43,471
|
|
Interest bearing
|
1,089,324
|
|
|
871,752
|
|
||
Total deposits
|
1,212,716
|
|
|
915,223
|
|
||
Short-term borrowings
|
40,000
|
|
|
170,000
|
|
||
Long-term debt
|
35,000
|
|
|
45,000
|
|
||
Accrued expenses and other liabilities
|
28,826
|
|
|
12,530
|
|
||
Total liabilities
|
1,316,542
|
|
|
1,142,753
|
|
||
Commitments and contingencies (Notes 6 and 13)
|
|
|
|
||||
Equity:
|
|
|
|
||||
Preferred stock, zero par value, (50,000,000 shares authorized; none issued and outstanding)
|
—
|
|
|
—
|
|
||
SBLF Preferred stock, Series A, $1.00 par value, $1,000 liquidation value (50,000 shares authorized; zero and 18,724 issued and outstanding at December 31, 2014 and December 31, 2013 respectively)
|
—
|
|
|
18,724
|
|
||
Common stock, $0.01 par value; 100,000,000 shares authorized, 28,466,813 issued and outstanding at December 31, 2014; none issued at December 31, 2013
|
285
|
|
|
—
|
|
||
Additional paid-in capital
|
281,035
|
|
|
—
|
|
||
Unearned compensation- ESOP
|
(22,014
|
)
|
|
—
|
|
||
Retained earnings
|
149,723
|
|
|
150,345
|
|
||
Accumulated other comprehensive income
|
2,577
|
|
|
2,465
|
|
||
Total equity
|
411,606
|
|
|
171,534
|
|
||
|
$
|
1,728,148
|
|
|
$
|
1,314,287
|
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
(In thousands)
|
||||||||||
Interest and dividend income:
|
|
|
|
|
|
||||||
Interest and fees on loans
|
$
|
37,382
|
|
|
$
|
21,876
|
|
|
$
|
16,545
|
|
Interest on securities
|
7,859
|
|
|
8,821
|
|
|
12,280
|
|
|||
Dividends
|
3,894
|
|
|
2,329
|
|
|
2,871
|
|
|||
Other
|
140
|
|
|
66
|
|
|
120
|
|
|||
Total interest and dividend income
|
49,275
|
|
|
33,092
|
|
|
31,816
|
|
|||
Interest expense:
|
|
|
|
|
|
||||||
Interest on deposits
|
5,750
|
|
|
6,803
|
|
|
7,259
|
|
|||
Interest on borrowings
|
1,148
|
|
|
1,168
|
|
|
1,113
|
|
|||
Total interest expense
|
6,898
|
|
|
7,971
|
|
|
8,372
|
|
|||
Net interest and dividend income
|
42,377
|
|
|
25,121
|
|
|
23,444
|
|
|||
Provision for loan losses
|
3,381
|
|
|
4,094
|
|
|
2,361
|
|
|||
Net interest income, after provision for loan losses
|
38,996
|
|
|
21,027
|
|
|
21,083
|
|
|||
Noninterest income:
|
|
|
|
|
|
||||||
Total other than temporary impairment losses
|
(307
|
)
|
|
(92
|
)
|
|
—
|
|
|||
Portion of impairment losses on debt securities recognized in other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net impairment losses recognized in earnings
|
(307
|
)
|
|
(92
|
)
|
|
—
|
|
|||
Deposit account fees
|
1,313
|
|
|
579
|
|
|
516
|
|
|||
Interchange and ATM fees
|
1,397
|
|
|
821
|
|
|
724
|
|
|||
Mortgage banking
|
344
|
|
|
754
|
|
|
997
|
|
|||
Gain on sale of jumbo residential mortgage portfolio loans
|
440
|
|
|
536
|
|
|
—
|
|
|||
Loan level derivative income
|
660
|
|
|
1,392
|
|
|
456
|
|
|||
Gains on sales of securities available for sale, net
|
2,822
|
|
|
5,091
|
|
|
11,931
|
|
|||
Gains on trading assets, net
|
25
|
|
|
505
|
|
|
148
|
|
|||
Bank-owned life insurance income
|
1,006
|
|
|
1,023
|
|
|
1,124
|
|
|||
Bank-owned life insurance death benefit gains
|
182
|
|
|
1,872
|
|
|
—
|
|
|||
Pension curtailment gain
|
1,304
|
|
|
—
|
|
|
—
|
|
|||
Miscellaneous
|
421
|
|
|
530
|
|
|
270
|
|
|||
Total noninterest income
|
9,607
|
|
|
13,011
|
|
|
16,166
|
|
|||
Noninterest expense:
|
|
|
|
|
|
||||||
Salaries and employee benefits
|
21,308
|
|
|
16,903
|
|
|
12,439
|
|
|||
Occupancy and equipment
|
5,305
|
|
|
3,996
|
|
|
3,410
|
|
|||
Data processing
|
2,989
|
|
|
1,934
|
|
|
1,774
|
|
|||
Professional fees
|
3,551
|
|
|
3,348
|
|
|
2,370
|
|
|||
Advertising
|
2,427
|
|
|
1,823
|
|
|
1,660
|
|
|||
FDIC deposit insurance
|
1,266
|
|
|
520
|
|
|
506
|
|
|||
Directors’ fees
|
486
|
|
|
688
|
|
|
1,346
|
|
|||
Amortization of core deposit intangible
|
1,808
|
|
|
—
|
|
|
—
|
|
|||
Charitable foundation contribution
|
7,000
|
|
|
120
|
|
|
611
|
|
|||
Other general and administrative
|
3,268
|
|
|
2,327
|
|
|
2,167
|
|
|||
Total noninterest expense
|
49,408
|
|
|
31,659
|
|
|
26,283
|
|
|||
Income (loss) before income taxes
|
(805
|
)
|
|
2,379
|
|
|
10,966
|
|
|||
Provision (benefit) for income taxes
|
(622
|
)
|
|
(284
|
)
|
|
3,112
|
|
|||
Net income (loss)
|
$
|
(183
|
)
|
|
$
|
2,663
|
|
|
$
|
7,854
|
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
(In thousands)
|
||||||||||
Net income (loss)
|
$
|
(183
|
)
|
|
$
|
2,663
|
|
|
$
|
7,854
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
||||||
Securities available for sale:
|
|
|
|
|
|
||||||
Change in unrealized holding gains (losses)
|
4,942
|
|
|
(9,256
|
)
|
|
20,596
|
|
|||
Reclassification adjustment for net gains realized in net income (1)
|
(2,515
|
)
|
|
(4,999
|
)
|
|
(11,931
|
)
|
|||
Net unrealized gain (loss)
|
2,427
|
|
|
(14,255
|
)
|
|
8,665
|
|
|||
Tax effect
|
(1,018
|
)
|
|
5,433
|
|
|
(2,997
|
)
|
|||
Net-of-tax amount
|
1,409
|
|
|
(8,822
|
)
|
|
5,668
|
|
|||
Defined benefit pension plan:
|
|
|
|
|
|
||||||
Reclassification adjustments for losses (gains) recognized in net periodic benefit cost (2)
|
(70
|
)
|
|
104
|
|
|
117
|
|
|||
Actuarial gains (losses) arising during the period
|
(2,090
|
)
|
|
2,033
|
|
|
731
|
|
|||
Net actuarial gains (losses)
|
(2,160
|
)
|
|
2,137
|
|
|
848
|
|
|||
Tax effect
|
863
|
|
|
(853
|
)
|
|
(339
|
)
|
|||
Net-of-tax amount
|
(1,297
|
)
|
|
1,284
|
|
|
509
|
|
|||
Other comprehensive income (loss)
|
112
|
|
|
(7,538
|
)
|
|
6,177
|
|
|||
Comprehensive income (loss)
|
$
|
(71
|
)
|
|
$
|
(4,875
|
)
|
|
$
|
14,031
|
|
(1)
|
Amounts are included in gains on sales of securities available for sale and net impairment losses, net in noninterest income in the consolidated statements of operations. Income tax expense associated with the reclassification adjustment for the years ended December 31, 2014, 2013 and 2012 was approximately
$940,000
,
$1,680,000
and
$4,302,000
, respectively.
|
(2)
|
Amounts are included in salaries and employee benefits, in noninterest expense in the consolidated statements of operations. Income tax expense (benefit) associated with the reclassification adjustment for the years ended December 31, 2014, 2013 and 2012 were
$24,000
,
$(35,000)
and
$(40,000)
, respectively.
|
|
SBLF Preferred
Stock
|
Common Stock
|
Additional paid-in capital
|
Unearned Compensation- ESOP
|
Retained
Earnings
|
Accumulated Other Comprehensive Income
|
Total
|
||||||||||||||||
Shares
|
Amount
|
||||||||||||||||||||||
(in thousands, except share data)
|
|
||||||||||||||||||||||
Balance at December 31, 2011
|
$
|
18,724
|
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
141,282
|
|
$
|
3,826
|
|
$
|
163,832
|
|
Comprehensive income
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
7,854
|
|
6,177
|
|
14,031
|
|
|||||||
Preferred stock dividends declared
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(925
|
)
|
—
|
|
(925
|
)
|
|||||||
Balance at December 31, 2012
|
18,724
|
|
—
|
|
—
|
|
—
|
|
—
|
|
148,211
|
|
10,003
|
|
176,938
|
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||
Comprehensive income (loss)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2,663
|
|
(7,538
|
)
|
(4,875
|
)
|
|||||||
Preferred stock dividends declared
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(529
|
)
|
—
|
|
(529
|
)
|
|||||||
Balance at December 31, 2013
|
18,724
|
|
—
|
|
—
|
|
—
|
|
—
|
|
150,345
|
|
2,465
|
|
171,534
|
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||
Comprehensive income (loss)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(183
|
)
|
112
|
|
(71
|
)
|
|||||||
Issuance of common stock for initial public offering, net of expenses of $3,583
|
—
|
|
27,772,500
|
|
278
|
|
273,865
|
|
—
|
|
—
|
|
—
|
|
274,143
|
|
|||||||
Issuance of common stock to Blue Hills Bank Foundation
|
—
|
|
694,313
|
|
7
|
|
6,936
|
|
—
|
|
—
|
|
—
|
|
6,943
|
|
|||||||
Stock purchased by the ESOP
|
—
|
|
—
|
|
—
|
|
—
|
|
(22,773
|
)
|
—
|
|
—
|
|
(22,773
|
)
|
|||||||
ESOP shares committed to be released
|
—
|
|
—
|
|
—
|
|
234
|
|
759
|
|
—
|
|
—
|
|
993
|
|
|||||||
Redemption of SBLF preferred stock
|
(18,724
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(18,724
|
)
|
|||||||
Preferred stock dividends paid
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(439
|
)
|
—
|
|
(439
|
)
|
|||||||
Balance at December 31, 2014
|
$
|
—
|
|
28,466,813
|
|
$
|
285
|
|
$
|
281,035
|
|
$
|
(22,014
|
)
|
$
|
149,723
|
|
$
|
2,577
|
|
$
|
411,606
|
|
Blue Hills Bancorp, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
Years Ended December 31, 2014, 2013 and 2012
|
|||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
|
(In thousands)
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income (loss)
|
$
|
(183
|
)
|
|
$
|
2,663
|
|
|
$
|
7,854
|
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Provision for loan losses
|
3,381
|
|
|
4,094
|
|
|
2,361
|
|
|||
Net amortization of securities available for sale
|
2,184
|
|
|
14,112
|
|
|
2,167
|
|
|||
Gains on sales of securities available for sale, net
|
(2,822
|
)
|
|
(5,091
|
)
|
|
(11,931
|
)
|
|||
Impairment losses on securities
|
307
|
|
|
92
|
|
|
—
|
|
|||
Proceeds from sale of loans
|
14,315
|
|
|
24,995
|
|
|
25,954
|
|
|||
Loans originated for sale
|
(13,282
|
)
|
|
(25,050
|
)
|
|
(24,957
|
)
|
|||
Gains on sale of loans, net
|
(268
|
)
|
|
(710
|
)
|
|
(997
|
)
|
|||
Gain on sale of jumbo residential loans
|
(440
|
)
|
|
(536
|
)
|
|
—
|
|
|||
Net amortization of deferred loan origination costs and discounts
|
(336
|
)
|
|
595
|
|
|
505
|
|
|||
Depreciation and amortization of premises and equipment
|
1,475
|
|
|
1,449
|
|
|
1,231
|
|
|||
Issuance of common stock to charitable foundation
|
6,943
|
|
|
—
|
|
|
—
|
|
|||
Amortization of core deposit intangible
|
1,808
|
|
|
—
|
|
|
—
|
|
|||
Bank-owned life insurance income
|
(1,188
|
)
|
|
(2,895
|
)
|
|
(1,124
|
)
|
|||
ESOP expense
|
993
|
|
|
—
|
|
|
—
|
|
|||
Pension curtailment gain
|
(1,304
|
)
|
|
—
|
|
|
—
|
|
|||
Deferred tax benefit
|
(3,557
|
)
|
|
(1,416
|
)
|
|
(689
|
)
|
|||
Net change in:
|
|
|
|
|
|
||||||
Trading assets
|
750
|
|
|
(266
|
)
|
|
(67
|
)
|
|||
Accrued interest receivable
|
161
|
|
|
1,131
|
|
|
470
|
|
|||
Other assets
|
(7,033
|
)
|
|
(824
|
)
|
|
(937
|
)
|
|||
Accrued expenses and other liabilities
|
14,220
|
|
|
3,966
|
|
|
1,159
|
|
|||
Net cash provided by operating activities
|
16,124
|
|
|
16,309
|
|
|
999
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Activity in securities available for sale:
|
|
|
|
|
|
||||||
Purchases
|
(367,511
|
)
|
|
(335,943
|
)
|
|
(493,272
|
)
|
|||
Sales
|
362,941
|
|
|
314,947
|
|
|
343,825
|
|
|||
Maturities/calls
|
9,615
|
|
|
11,616
|
|
|
133,340
|
|
|||
Principal paydowns
|
22,572
|
|
|
78,442
|
|
|
48,226
|
|
|||
Loan (originations and purchases) net of paydowns
|
(315,872
|
)
|
|
(307,845
|
)
|
|
(214,545
|
)
|
|||
Proceeds from portfolio loan sales
|
27,810
|
|
|
27,317
|
|
|
—
|
|
|||
Net purchases of premises and equipment
|
(2,023
|
)
|
|
(1,050
|
)
|
|
(934
|
)
|
|||
Purchases of FHLBB stock
|
(936
|
)
|
|
(1,481
|
)
|
|
(5,823
|
)
|
|||
Redemption of FHLBB stock
|
—
|
|
|
384
|
|
|
—
|
|
|||
Proceeds from bank-owned life insurance
|
424
|
|
|
6,408
|
|
|
—
|
|
|||
Cash provided by business combination, net of purchase price
|
151,587
|
|
|
—
|
|
|
—
|
|
|||
Net cash used in investing activities
|
(111,393
|
)
|
|
(207,205
|
)
|
|
(189,183
|
)
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
(In thousands)
|
||||||||||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Net change in deposits, excluding brokered
|
32,644
|
|
|
17,723
|
|
|
49,396
|
|
|||
Net change in brokered deposits
|
(9,752
|
)
|
|
79,623
|
|
|
12,000
|
|
|||
Net change in short-term borrowings
|
(130,000
|
)
|
|
60,576
|
|
|
109,424
|
|
|||
Repayments of long-term debt
|
(10,000
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from long-term debt
|
—
|
|
|
—
|
|
|
5,000
|
|
|||
Net proceeds from issuance of common stock
|
274,143
|
|
|
—
|
|
|
—
|
|
|||
Acquisition of common stock by ESOP
|
(22,773
|
)
|
|
—
|
|
|
—
|
|
|||
Redemption of SBLF preferred stock
|
(18,724
|
)
|
|
—
|
|
|
—
|
|
|||
Preferred stock dividends paid
|
(439
|
)
|
|
(529
|
)
|
|
(1,148
|
)
|
|||
Net cash provided by financing activities
|
115,099
|
|
|
157,393
|
|
|
174,672
|
|
|||
Net change in cash and cash equivalents
|
19,830
|
|
|
(33,503
|
)
|
|
(13,512
|
)
|
|||
Cash and cash equivalents at beginning of year
|
40,316
|
|
|
73,819
|
|
|
87,331
|
|
|||
Cash and cash equivalents at end of year
|
$
|
60,146
|
|
|
$
|
40,316
|
|
|
$
|
73,819
|
|
Supplementary information:
|
|
|
|
|
|
||||||
Interest paid
|
$
|
6,921
|
|
|
$
|
7,923
|
|
|
$
|
8,335
|
|
Income taxes paid, net of refunds
|
257
|
|
|
3,292
|
|
|
4,275
|
|
|||
Preferred stock dividends declared
|
439
|
|
|
529
|
|
|
925
|
|
|||
Fair value of non-cash assets acquired
|
123,733
|
|
|
—
|
|
|
—
|
|
|||
Fair value of liabilities assumed
|
275,320
|
|
|
—
|
|
|
—
|
|
|||
Portfolio loans transferred to loans held for sale designation
|
14,591
|
|
|
—
|
|
|
—
|
|
Assets acquired
:
|
|
||
Cash
|
$
|
161,900
|
|
Loans:
|
|
||
Home equity
|
39,966
|
|
|
Commercial real estate
|
57,967
|
|
|
Commercial business
|
3,862
|
|
|
Consumer
|
444
|
|
|
Discount on purchased loans
|
(4,773
|
)
|
|
Loans, net
|
97,466
|
|
|
Premises and equipment, net
|
10,762
|
|
|
Core deposit intangible
|
6,041
|
|
|
Goodwill
|
9,160
|
|
|
Accrued interest receivable
|
304
|
|
|
Total assets acquired
|
285,633
|
|
|
|
|
||
Liabilities assumed
:
|
|
||
Deposits:
|
|
||
NOW and demand
|
107,241
|
|
|
Regular savings
|
24,511
|
|
|
Money market deposits
|
113,764
|
|
|
Term certificates
|
29,085
|
|
|
Total deposits
|
274,601
|
|
|
Accrued expenses and other liabilities
|
719
|
|
|
Total liabilities assumed
|
275,320
|
|
|
|
|
||
Net purchase price
|
$
|
10,313
|
|
|
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
(In thousands)
|
||||||||||||||
December 31, 2014
|
|
|
|
|
|
|
|
||||||||
Debt securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
13,037
|
|
|
$
|
182
|
|
|
$
|
—
|
|
|
$
|
13,219
|
|
Government-sponsored enterprises
|
26,335
|
|
|
131
|
|
|
(29
|
)
|
|
26,437
|
|
||||
Government-sponsored mortgage-backed and collateralized mortgage obligations
|
160,091
|
|
|
756
|
|
|
(294
|
)
|
|
160,553
|
|
||||
Other mortgage- and asset-backed:
|
|
|
|
|
|
|
|
|
|||||||
Privately issued commercial mortgage-backed securities
|
22,100
|
|
|
30
|
|
|
(201
|
)
|
|
21,929
|
|
||||
SBA asset-backed securities
|
27,765
|
|
|
308
|
|
|
(27
|
)
|
|
28,046
|
|
||||
Other asset-backed securities
|
16,235
|
|
|
—
|
|
|
(43
|
)
|
|
16,192
|
|
||||
Total other mortgage- and asset-backed securities
|
66,100
|
|
|
338
|
|
|
(271
|
)
|
|
66,167
|
|
||||
State and political
|
15,619
|
|
|
567
|
|
|
(3
|
)
|
|
16,183
|
|
||||
Financial services:
|
|
|
|
|
|
|
|
|
|||||||
Banks
|
12,364
|
|
|
531
|
|
|
(6
|
)
|
|
12,889
|
|
||||
Diversified financials
|
15,796
|
|
|
354
|
|
|
(18
|
)
|
|
16,132
|
|
||||
Insurance and REITs
|
9,387
|
|
|
138
|
|
|
(9
|
)
|
|
9,516
|
|
||||
Total financial services
|
37,547
|
|
|
1,023
|
|
|
(33
|
)
|
|
38,537
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
||||||||
Industrials
|
34,408
|
|
|
681
|
|
|
(54
|
)
|
|
35,035
|
|
||||
Utilities
|
16,873
|
|
|
265
|
|
|
(120
|
)
|
|
17,018
|
|
||||
Total other corporate
|
51,281
|
|
|
946
|
|
|
(174
|
)
|
|
52,053
|
|
||||
Total debt securities
|
370,010
|
|
|
3,943
|
|
|
(804
|
)
|
|
373,149
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Marketable equity securities:
|
|
|
|
|
|
|
|
||||||||
Mutual funds:
|
|
|
|
|
|
|
|
||||||||
Global equity
|
5,000
|
|
|
623
|
|
|
—
|
|
|
5,623
|
|
||||
Domestic community
|
3,216
|
|
|
86
|
|
|
(5
|
)
|
|
3,297
|
|
||||
Global asset allocation
|
32,956
|
|
|
1,498
|
|
|
(76
|
)
|
|
34,378
|
|
||||
Total marketable equity securities
|
41,172
|
|
|
2,207
|
|
|
(81
|
)
|
|
43,298
|
|
||||
Total securities available for sale
|
$
|
411,182
|
|
|
$
|
6,150
|
|
|
$
|
(885
|
)
|
|
$
|
416,447
|
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
(In thousands)
|
||||||||||||||
December 31, 2013
|
|
|
|
|
|
|
|
||||||||
Debt securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
131,781
|
|
|
$
|
145
|
|
|
$
|
(3,724
|
)
|
|
$
|
128,202
|
|
Government-sponsored enterprises
|
13,985
|
|
|
81
|
|
|
(109
|
)
|
|
13,957
|
|
||||
Government-sponsored mortgage-backed and collateralized mortgage obligations
|
67,787
|
|
|
778
|
|
|
(1,072
|
)
|
|
67,493
|
|
||||
Other mortgage- and asset-backed:
|
|
|
|
|
|
|
|
||||||||
Privately issued commercial mortgage-backed securities
|
22,828
|
|
|
127
|
|
|
(281
|
)
|
|
22,674
|
|
||||
Privately issued residential mortgage-backed securities
|
3,021
|
|
|
362
|
|
|
—
|
|
|
3,383
|
|
||||
SBA asset-backed securities
|
9,787
|
|
|
—
|
|
|
(393
|
)
|
|
9,394
|
|
||||
Other asset-backed securities
|
10,974
|
|
|
57
|
|
|
(9
|
)
|
|
11,022
|
|
||||
Total other mortgage- and asset-backed securities
|
46,610
|
|
|
546
|
|
|
(683
|
)
|
|
46,473
|
|
||||
State and political
|
15,628
|
|
|
218
|
|
|
(107
|
)
|
|
15,739
|
|
||||
Financial services:
|
|
|
|
|
|
|
|
|
|||||||
Banks
|
12,535
|
|
|
889
|
|
|
(74
|
)
|
|
13,350
|
|
||||
Diversified financials
|
14,023
|
|
|
557
|
|
|
(52
|
)
|
|
14,528
|
|
||||
Insurance and REITs
|
15,635
|
|
|
250
|
|
|
(92
|
)
|
|
15,793
|
|
||||
Total financial services
|
42,193
|
|
|
1,696
|
|
|
(218
|
)
|
|
43,671
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
||||||||
Industrials
|
32,920
|
|
|
842
|
|
|
(312
|
)
|
|
33,450
|
|
||||
Utilities
|
12,000
|
|
|
286
|
|
|
(200
|
)
|
|
12,086
|
|
||||
Total other corporate
|
44,920
|
|
|
1,128
|
|
|
(512
|
)
|
|
45,536
|
|
||||
Total debt securities
|
362,904
|
|
|
4,592
|
|
|
(6,425
|
)
|
|
361,071
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Marketable equity securities:
|
|
|
|
|
|
|
|
||||||||
Mutual funds:
|
|
|
|
|
|
|
|
||||||||
Global equity
|
5,000
|
|
|
540
|
|
|
—
|
|
|
5,540
|
|
||||
Domestic community
|
3,216
|
|
|
48
|
|
|
(43
|
)
|
|
3,221
|
|
||||
Global asset allocation
|
32,956
|
|
|
4,168
|
|
|
—
|
|
|
37,124
|
|
||||
Diversified bonds
|
34,392
|
|
|
71
|
|
|
(113
|
)
|
|
34,350
|
|
||||
Total marketable equity securities
|
75,564
|
|
|
4,827
|
|
|
(156
|
)
|
|
80,235
|
|
||||
Total securities available for sale
|
$
|
438,468
|
|
|
$
|
9,419
|
|
|
$
|
(6,581
|
)
|
|
$
|
441,306
|
|
|
Amortized
Cost
|
|
Fair
Value
|
||||
|
(In thousands)
|
||||||
Within 1 year
|
$
|
7,079
|
|
|
$
|
7,132
|
|
After 1 year through 5 years
|
61,214
|
|
|
62,195
|
|
||
After 5 years through 10 years
|
66,837
|
|
|
68,034
|
|
||
After 10 years
|
8,689
|
|
|
9,068
|
|
||
|
143,819
|
|
|
146,429
|
|
||
Mortgage- and asset-backed securities and collateralized mortgage obligations
|
226,191
|
|
|
226,720
|
|
||
|
$
|
370,010
|
|
|
$
|
373,149
|
|
|
Less Than Twelve Months
|
|
More Than Twelve Months
|
||||||||||||
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
(In thousands)
|
||||||||||||||
December 31, 2014
|
|
|
|
|
|
|
|
||||||||
Debt securities:
|
|
|
|
|
|
|
|
||||||||
Government-sponsored enterprises
|
$
|
(12
|
)
|
|
$
|
5,932
|
|
|
$
|
(17
|
)
|
|
$
|
1,080
|
|
Government-sponsored mortgage-backed and collateralized mortgage obligations
|
(190
|
)
|
|
93,364
|
|
|
(104
|
)
|
|
8,425
|
|
||||
Other mortgage- and asset-backed:
|
|
|
|
|
|
|
|
||||||||
Privately issued commercial mortgage- backed securities
|
(69
|
)
|
|
9,412
|
|
|
(132
|
)
|
|
8,759
|
|
||||
SBA asset-backed securities
|
(27
|
)
|
|
5,529
|
|
|
—
|
|
|
—
|
|
||||
Other asset-backed securities
|
(43
|
)
|
|
16,192
|
|
|
—
|
|
|
—
|
|
||||
Total other mortgage- and asset-backed securities
|
(139
|
)
|
|
31,133
|
|
|
(132
|
)
|
|
8,759
|
|
||||
State and political
|
(3
|
)
|
|
1,955
|
|
|
—
|
|
|
—
|
|
||||
Financial services:
|
|
|
|
|
|
|
|
||||||||
Banks
|
(6
|
)
|
|
2,907
|
|
|
—
|
|
|
—
|
|
||||
Diversified financials
|
(18
|
)
|
|
7,676
|
|
|
—
|
|
|
—
|
|
||||
Insurance and REITs
|
(9
|
)
|
|
4,177
|
|
|
—
|
|
|
—
|
|
||||
Total financial services
|
(33
|
)
|
|
14,760
|
|
|
—
|
|
|
—
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
||||||||
Industrials
|
(54
|
)
|
|
9,575
|
|
|
—
|
|
|
—
|
|
||||
Utilities
|
(120
|
)
|
|
7,291
|
|
|
—
|
|
|
—
|
|
||||
Total other corporate
|
(174
|
)
|
|
16,866
|
|
|
—
|
|
|
—
|
|
||||
Total debt securities
|
(551
|
)
|
|
164,010
|
|
|
(253
|
)
|
|
18,264
|
|
||||
Marketable equity securities:
|
|
|
|
|
|
|
|
||||||||
Mutual funds:
|
|
|
|
|
|
|
|
||||||||
Domestic community
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
462
|
|
||||
Global asset allocation
|
(76
|
)
|
|
7,057
|
|
|
—
|
|
|
—
|
|
||||
Total marketable equity securities
|
(76
|
)
|
|
7,057
|
|
|
(5
|
)
|
|
462
|
|
||||
Total temporarily impaired securities
|
$
|
(627
|
)
|
|
$
|
171,067
|
|
|
$
|
(258
|
)
|
|
$
|
18,726
|
|
|
Less Than Twelve Months
|
|
More Than Twelve Months
|
||||||||||||
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
(In thousands)
|
||||||||||||||
December 31, 2013
|
|
|
|
|
|
|
|
||||||||
Debt securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
(3,724
|
)
|
|
$
|
117,043
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Government-sponsored enterprises
|
(109
|
)
|
|
3,920
|
|
|
—
|
|
|
—
|
|
||||
Government-sponsored mortgage-backed and collateralized mortgage obligations
|
(973
|
)
|
|
37,265
|
|
|
(99
|
)
|
|
3,341
|
|
||||
Other mortgage- and asset-backed:
|
|
|
|
|
|
|
|
||||||||
Privately issued commercial mortgage- backed securities
|
(130
|
)
|
|
10,926
|
|
|
(151
|
)
|
|
4,153
|
|
||||
SBA asset-backed securities
|
(393
|
)
|
|
8,499
|
|
|
—
|
|
|
—
|
|
||||
Other asset-backed securities
|
(9
|
)
|
|
7,809
|
|
|
—
|
|
|
—
|
|
||||
Total other mortgage- and asset-backed securities
|
(532
|
)
|
|
27,234
|
|
|
(151
|
)
|
|
4,153
|
|
||||
State and political
|
(107
|
)
|
|
5,904
|
|
|
|
|
—
|
|
|||||
Financial services:
|
|
|
|
|
|
|
|
||||||||
Banks
|
(74
|
)
|
|
1,773
|
|
|
—
|
|
|
—
|
|
||||
Diversified financials
|
(52
|
)
|
|
1,380
|
|
|
—
|
|
|
—
|
|
||||
Insurance and REITs
|
(92
|
)
|
|
5,466
|
|
|
—
|
|
|
—
|
|
||||
Total financial services
|
(218
|
)
|
|
8,619
|
|
|
—
|
|
|
—
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
||||||||
Industrials
|
(312
|
)
|
|
10,947
|
|
|
—
|
|
|
—
|
|
||||
Utilities
|
(200
|
)
|
|
12,671
|
|
|
—
|
|
|
—
|
|
||||
Total other corporate
|
(512
|
)
|
|
23,618
|
|
|
—
|
|
|
—
|
|
||||
Total debt securities
|
(6,175
|
)
|
|
223,603
|
|
|
(250
|
)
|
|
7,494
|
|
||||
Marketable equity securities:
|
|
|
|
|
|
|
|
||||||||
Mutual funds:
|
|
|
|
|
|
|
|
||||||||
Domestic community
|
(30
|
)
|
|
2,767
|
|
|
(13
|
)
|
|
453
|
|
||||
Diversified bonds
|
(109
|
)
|
|
21,450
|
|
|
(4
|
)
|
|
71
|
|
||||
Total marketable equity securities
|
(139
|
)
|
|
24,217
|
|
|
(17
|
)
|
|
524
|
|
||||
Total temporarily impaired securities
|
$
|
(6,314
|
)
|
|
$
|
247,820
|
|
|
$
|
(267
|
)
|
|
$
|
8,018
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
|
(In thousands)
|
||||||
Real estate:
|
|
|
|
||||
1-4 family residential
|
$
|
460,273
|
|
|
$
|
364,942
|
|
Home equity
|
61,750
|
|
|
25,535
|
|
||
Commercial real estate
|
387,807
|
|
|
228,688
|
|
||
Construction
|
53,606
|
|
|
16,559
|
|
||
|
963,436
|
|
|
635,724
|
|
||
Commercial business
|
151,823
|
|
|
111,154
|
|
||
Consumer
|
31,778
|
|
|
25,372
|
|
||
Total loans
|
1,147,037
|
|
|
772,250
|
|
||
Allowance for loan losses
|
(12,973
|
)
|
|
(9,671
|
)
|
||
Discount and fair value adjustments on purchased loans
|
(3,850
|
)
|
|
(340
|
)
|
||
Deferred loan costs and fees, net
|
2,700
|
|
|
2,343
|
|
||
Loans, net
|
$
|
1,132,914
|
|
|
$
|
764,582
|
|
|
1-4 Family
Residential
|
|
Home
Equity
|
|
Commercial
Real Estate
|
|
Construction
|
|
Commercial
Business
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance
|
$
|
2,835
|
|
|
$
|
247
|
|
|
$
|
2,608
|
|
|
$
|
303
|
|
|
$
|
2,416
|
|
|
$
|
574
|
|
|
$
|
688
|
|
|
$
|
9,671
|
|
Provision (credit) for loan losses
|
405
|
|
|
93
|
|
|
943
|
|
|
753
|
|
|
994
|
|
|
223
|
|
|
(30
|
)
|
|
3,381
|
|
||||||||
Loans charged-off
|
(18
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(61
|
)
|
|
—
|
|
|
(79
|
)
|
||||||||
Recoveries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Ending Balance
|
$
|
3,222
|
|
|
$
|
340
|
|
|
$
|
3,551
|
|
|
$
|
1,056
|
|
|
$
|
3,410
|
|
|
$
|
736
|
|
|
$
|
658
|
|
|
$
|
12,973
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance
|
$
|
2,725
|
|
|
$
|
316
|
|
|
$
|
1,343
|
|
|
$
|
106
|
|
|
$
|
565
|
|
|
$
|
313
|
|
|
$
|
182
|
|
|
$
|
5,550
|
|
Provision (credit) for loan losses
|
39
|
|
|
(69
|
)
|
|
1,265
|
|
|
197
|
|
|
1,851
|
|
|
305
|
|
|
506
|
|
|
4,094
|
|
||||||||
Loans charged-off
|
(165
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(44
|
)
|
|
—
|
|
|
(209
|
)
|
||||||||
Recoveries
|
236
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
236
|
|
||||||||
Ending Balance
|
$
|
2,835
|
|
|
$
|
247
|
|
|
$
|
2,608
|
|
|
$
|
303
|
|
|
$
|
2,416
|
|
|
$
|
574
|
|
|
$
|
688
|
|
|
$
|
9,671
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance
|
$
|
3,267
|
|
|
$
|
—
|
|
|
$
|
160
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24
|
|
|
$
|
50
|
|
|
$
|
3,501
|
|
Provision (credit) for loan losses
|
(230
|
)
|
|
316
|
|
|
1,183
|
|
|
106
|
|
|
565
|
|
|
289
|
|
|
132
|
|
|
2,361
|
|
||||||||
Loans charged-off
|
(714
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(714
|
)
|
||||||||
Recoveries
|
402
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
402
|
|
||||||||
Ending Balance
|
$
|
2,725
|
|
|
$
|
316
|
|
|
$
|
1,343
|
|
|
$
|
106
|
|
|
$
|
565
|
|
|
$
|
313
|
|
|
$
|
182
|
|
|
$
|
5,550
|
|
|
1-4 Family
Residential |
|
Home
Equity |
|
Commercial
Real Estate |
|
Construction
|
|
Commercial
Business |
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance related to impaired loans
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Allowance related to non-impaired loans
|
3,222
|
|
|
340
|
|
|
3,551
|
|
|
1,056
|
|
|
3,410
|
|
|
736
|
|
|
658
|
|
|
12,973
|
|
||||||||
Total allowance for loan losses
|
$
|
3,222
|
|
|
$
|
340
|
|
|
$
|
3,551
|
|
|
$
|
1,056
|
|
|
$
|
3,410
|
|
|
$
|
736
|
|
|
$
|
658
|
|
|
$
|
12,973
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Impaired loans
|
$
|
4,419
|
|
|
$
|
578
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
5,024
|
|
Non-impaired loans
|
455,854
|
|
|
61,172
|
|
|
387,807
|
|
|
53,606
|
|
|
151,823
|
|
|
31,751
|
|
|
—
|
|
|
1,142,013
|
|
||||||||
Total loans
|
$
|
460,273
|
|
|
$
|
61,750
|
|
|
$
|
387,807
|
|
|
$
|
53,606
|
|
|
$
|
151,823
|
|
|
$
|
31,778
|
|
|
$
|
—
|
|
|
$
|
1,147,037
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance related to impaired loans
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Allowance related to non-impaired loans
|
2,835
|
|
|
247
|
|
|
2,608
|
|
|
303
|
|
|
2,416
|
|
|
574
|
|
|
688
|
|
|
9,671
|
|
||||||||
Total allowance for loan losses
|
$
|
2,835
|
|
|
$
|
247
|
|
|
$
|
2,608
|
|
|
$
|
303
|
|
|
$
|
2,416
|
|
|
$
|
574
|
|
|
$
|
688
|
|
|
$
|
9,671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Impaired loans
|
$
|
3,118
|
|
|
$
|
36
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,154
|
|
Non-impaired loans
|
361,824
|
|
|
25,499
|
|
|
228,688
|
|
|
16,559
|
|
|
111,154
|
|
|
25,372
|
|
|
—
|
|
|
769,096
|
|
||||||||
Total loans
|
$
|
364,942
|
|
|
$
|
25,535
|
|
|
$
|
228,688
|
|
|
$
|
16,559
|
|
|
$
|
111,154
|
|
|
$
|
25,372
|
|
|
$
|
—
|
|
|
$
|
772,250
|
|
|
30-59 Days
Past Due
|
|
60-89 Days
Past Due
|
|
Past Due 90
Days or More
|
|
Total
Past Due
|
|
Loans on
Non-accrual
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
December 31, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
1-4 family residential
|
$
|
3,137
|
|
|
$
|
522
|
|
|
$
|
1,370
|
|
|
$
|
5,029
|
|
|
$
|
3,876
|
|
Home equity
|
680
|
|
|
—
|
|
|
475
|
|
|
1,155
|
|
|
578
|
|
|||||
Consumer
|
217
|
|
|
—
|
|
|
5
|
|
|
222
|
|
|
27
|
|
|||||
Total
|
$
|
4,034
|
|
|
$
|
522
|
|
|
$
|
1,850
|
|
|
$
|
6,406
|
|
|
$
|
4,481
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
1-4 family residential
|
$
|
1,426
|
|
|
$
|
196
|
|
|
$
|
828
|
|
|
$
|
2,450
|
|
|
$
|
1,706
|
|
Home equity
|
—
|
|
|
—
|
|
|
36
|
|
|
36
|
|
|
36
|
|
|||||
Total
|
$
|
1,426
|
|
|
$
|
196
|
|
|
$
|
864
|
|
|
$
|
2,486
|
|
|
$
|
1,742
|
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
||||||
December 31, 2014
|
(In thousands)
|
||||||||||
Impaired loans without a valuation allowance:
|
|
|
|
|
|
||||||
Real estate:
|
|
|
|
|
|
||||||
1-4 family residential
|
$
|
4,419
|
|
|
$
|
5,211
|
|
|
$
|
—
|
|
Home equity
|
578
|
|
|
804
|
|
|
—
|
|
|||
Consumer
|
27
|
|
|
25
|
|
|
—
|
|
|||
Total
|
$
|
5,024
|
|
|
$
|
6,040
|
|
|
$
|
—
|
|
|
|
|
|
|
|
||||||
December 31, 2013
|
|
|
|
|
|
||||||
Impaired loans without a valuation allowance:
|
|
|
|
|
|
||||||
Real estate:
|
|
|
|
|
|
||||||
1-4 family residential
|
$
|
3,118
|
|
|
$
|
3,893
|
|
|
$
|
—
|
|
Home Equity
|
36
|
|
|
36
|
|
|
—
|
|
|||
Total
|
$
|
3,154
|
|
|
$
|
3,929
|
|
|
$
|
—
|
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
|
Interest Income Recognized On Cash Basis
|
||||||
2014
|
|
|
|
|
|
||||||
Real estate:
|
|
|
|
|
|
||||||
1-4 family residential
|
$
|
4,076
|
|
|
$
|
213
|
|
|
$
|
213
|
|
Home equity
|
476
|
|
|
17
|
|
|
17
|
|
|||
Consumer
|
34
|
|
|
2
|
|
|
2
|
|
|||
Total
|
$
|
4,586
|
|
|
$
|
232
|
|
|
$
|
232
|
|
|
|
|
|
|
|
||||||
2013
|
|
|
|
|
|
||||||
Real estate:
|
|
|
|
|
|
||||||
1-4 family residential
|
$
|
2,586
|
|
|
$
|
61
|
|
|
$
|
61
|
|
Home equity
|
32
|
|
|
—
|
|
|
—
|
|
|||
Total
|
$
|
2,618
|
|
|
$
|
61
|
|
|
$
|
61
|
|
|
|
|
|
|
|
||||||
2012
|
|
|
|
|
|
||||||
Real estate:
|
|
|
|
|
|
||||||
1-4 family residential
|
$
|
1,725
|
|
|
$
|
84
|
|
|
$
|
84
|
|
Construction
|
220
|
|
|
48
|
|
|
48
|
|
|||
Consumer
|
3
|
|
|
—
|
|
|
—
|
|
|||
Total
|
$
|
1,948
|
|
|
$
|
132
|
|
|
$
|
132
|
|
|
1-4 Family
Residential
|
|
Home
Equity
|
|
Commercial
Real Estate
|
|
Construction
|
|
Commercial
Business
|
|
Consumer
|
|
Total
Loans
|
||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loans rated 1 - 6
|
$
|
3,381
|
|
|
$
|
473
|
|
|
$
|
387,651
|
|
|
$
|
53,606
|
|
|
$
|
150,960
|
|
|
$
|
5
|
|
|
$
|
596,076
|
|
Loans rated 7
|
3,095
|
|
|
852
|
|
|
156
|
|
|
—
|
|
|
863
|
|
|
—
|
|
|
4,966
|
|
|||||||
Loans rated 8
|
1,331
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
|
|
1,362
|
|
|||||||
Loans rated 9
|
709
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
709
|
|
|||||||
Loans rated 10
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Loans not rated
|
451,757
|
|
|
60,425
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31,742
|
|
|
543,924
|
|
|||||||
|
$
|
460,273
|
|
|
$
|
61,750
|
|
|
$
|
387,807
|
|
|
$
|
53,606
|
|
|
$
|
151,823
|
|
|
$
|
31,778
|
|
|
$
|
1,147,037
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loans rated 1 - 6
|
$
|
1,701
|
|
|
$
|
4,610
|
|
|
$
|
226,349
|
|
|
$
|
16,559
|
|
|
$
|
111,142
|
|
|
$
|
—
|
|
|
$
|
360,361
|
|
Loans rated 7
|
468
|
|
|
—
|
|
|
2,339
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
2,819
|
|
|||||||
Loans rated 8
|
1,647
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
|
1,707
|
|
|||||||
Loans rated 9
|
693
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
693
|
|
|||||||
Loans rated 10
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Loans not rated
|
360,433
|
|
|
20,889
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,348
|
|
|
406,670
|
|
|||||||
|
$
|
364,942
|
|
|
$
|
25,535
|
|
|
$
|
228,688
|
|
|
$
|
16,559
|
|
|
$
|
111,154
|
|
|
$
|
25,372
|
|
|
$
|
772,250
|
|
|
December 31,
|
|
Estimated
Useful
Lives
|
||||||
|
2014
|
|
2013
|
|
|||||
|
(In thousands)
|
|
|
||||||
Land
|
$
|
4,087
|
|
|
$
|
75
|
|
|
|
Buildings
|
10,293
|
|
|
3,575
|
|
|
5 to 40 years
|
||
Leasehold improvements
|
6,109
|
|
|
5,265
|
|
|
5 to 10 years
|
||
Furniture and fixtures
|
2,014
|
|
|
1,751
|
|
|
3 to 5 years
|
||
Technology equipment
|
4,266
|
|
|
3,027
|
|
|
1 to 3 years
|
||
Construction in progress
|
75
|
|
|
366
|
|
|
|
||
|
26,844
|
|
|
14,059
|
|
|
|
||
Less accumulated depreciation and amortization
|
(8,056
|
)
|
|
(6,581
|
)
|
|
|
||
|
$
|
18,788
|
|
|
$
|
7,478
|
|
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
|
(In thousands)
|
||||||
NOW and demand
|
$
|
245,117
|
|
|
$
|
118,648
|
|
Regular savings
|
303,834
|
|
|
332,518
|
|
||
Money market deposits
|
280,139
|
|
|
75,716
|
|
||
Brokered money market
|
23,166
|
|
|
—
|
|
||
Total non-certificate accounts
|
852,256
|
|
|
526,882
|
|
||
|
|
|
|
||||
Term certificates of $100,000 or more
|
142,569
|
|
|
128,990
|
|
||
Term certificates less than $100,000
|
159,186
|
|
|
167,728
|
|
||
Brokered certificates of deposit
|
58,705
|
|
|
91,623
|
|
||
Total certificate accounts
|
360,460
|
|
|
388,341
|
|
||
Total deposits
|
$
|
1,212,716
|
|
|
$
|
915,223
|
|
|
Amount
|
|
Weighted
Average
Rate
|
|||
|
(Dollars in thousands)
|
|||||
2015
|
$
|
193,498
|
|
|
0.56
|
%
|
2016
|
58,548
|
|
|
1.29
|
|
|
2017
|
54,724
|
|
|
1.28
|
|
|
2018
|
9,314
|
|
|
1.17
|
|
|
2019
|
44,376
|
|
|
1.89
|
|
|
|
$
|
360,460
|
|
|
0.97
|
%
|
|
December 31, 2014
|
|||||
|
Amount
|
|
Weighted Average Rate
|
|||
|
(Dollars in thousands)
|
|||||
Fixed-rate advances maturing:
|
|
|
|
|||
2016
|
$
|
10,000
|
|
|
2.29
|
%
|
2017
|
15,000
|
|
|
1.99
|
|
|
2018
|
10,000
|
|
|
3.16
|
|
|
|
$
|
35,000
|
|
|
2.41
|
%
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
|
|
|
(In thousands)
|
|
|
||||||
Current tax provision:
|
|
|
|
|
|
||||||
Federal
|
$
|
2,695
|
|
|
$
|
960
|
|
|
$
|
3,552
|
|
State
|
240
|
|
|
172
|
|
|
249
|
|
|||
|
2,935
|
|
|
1,132
|
|
|
3,801
|
|
|||
Deferred tax provision (benefit):
|
|
|
|
|
|
||||||
Federal
|
(3,183
|
)
|
|
(1,609
|
)
|
|
(405
|
)
|
|||
State
|
(1,014
|
)
|
|
(502
|
)
|
|
(241
|
)
|
|||
|
(4,197
|
)
|
|
(2,111
|
)
|
|
(646
|
)
|
|||
Change in valuation reserve
|
640
|
|
|
695
|
|
|
(43
|
)
|
|||
|
(3,557
|
)
|
|
(1,416
|
)
|
|
(689
|
)
|
|||
Provision (benefit) for income taxes
|
$
|
(622
|
)
|
|
$
|
(284
|
)
|
|
$
|
3,112
|
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
|
(Dollars in thousands)
|
||||||||||
Statutory federal tax provision (benefit) at 34%
|
$
|
(274
|
)
|
|
$
|
809
|
|
|
$
|
3,728
|
|
Increase (decrease) resulting from:
|
|
|
|
|
|
||||||
State taxes, net of federal tax benefit
|
(511
|
)
|
|
(218
|
)
|
|
5
|
|
|||
Dividends received deduction
|
(201
|
)
|
|
(134
|
)
|
|
(116
|
)
|
|||
Tax-exempt bank-owned life insurance
|
(404
|
)
|
|
(984
|
)
|
|
(382
|
)
|
|||
Tax-exempt interest
|
(277
|
)
|
|
(224
|
)
|
|
(12
|
)
|
|||
Change in valuation reserve
|
640
|
|
|
695
|
|
|
(43
|
)
|
|||
Nondeductible IPO costs
|
202
|
|
|
—
|
|
|
—
|
|
|||
Utilization of contribution carryover
|
—
|
|
|
—
|
|
|
(140
|
)
|
|||
Other, net
|
203
|
|
|
(228
|
)
|
|
72
|
|
|||
Tax provision (benefit)
|
$
|
(622
|
)
|
|
$
|
(284
|
)
|
|
$
|
3,112
|
|
Effective tax rates
|
77.3
|
%
|
|
(11.9
|
)%
|
|
28.4
|
%
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
|
(In thousands)
|
||||||
Deferred tax assets:
|
|
|
|
||||
Federal
|
$
|
8,453
|
|
|
$
|
4,400
|
|
State
|
2,543
|
|
|
1,370
|
|
||
|
10,996
|
|
|
5,770
|
|
||
Valuation reserve
|
(2,012
|
)
|
|
(1,372
|
)
|
||
|
8,984
|
|
|
4,398
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Federal
|
(2,429
|
)
|
|
(1,429
|
)
|
||
State
|
(322
|
)
|
|
(138
|
)
|
||
|
(2,751
|
)
|
|
(1,567
|
)
|
||
Net deferred tax asset
|
$
|
6,233
|
|
|
$
|
2,831
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
|
(In thousands)
|
||||||
Deferred tax assets:
|
|
|
|
||||
Depreciation and amortization
|
$
|
603
|
|
|
$
|
110
|
|
Employee benefit plans and share-based compensation plans
|
682
|
|
|
891
|
|
||
Allowance for loan losses
|
5,181
|
|
|
3,863
|
|
||
Contribution carryover
|
3,281
|
|
|
677
|
|
||
Net unrealized losses on defined benefit pension plan
|
543
|
|
|
—
|
|
||
Other
|
71
|
|
|
81
|
|
||
Valuation reserve
|
(2,012
|
)
|
|
(1,372
|
)
|
||
Deferred tax liabilities:
|
|
|
|
||||
Net unrealized gains on defined benefit pension plan
|
—
|
|
|
(321
|
)
|
||
Deferred loan origination costs
|
(243
|
)
|
|
(243
|
)
|
||
Net unrealized gain on securities available for sale
|
(1,873
|
)
|
|
(855
|
)
|
||
Net deferred tax asset
|
$
|
6,233
|
|
|
$
|
2,831
|
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
|
(In thousands)
|
||||||||||
Balance at beginning of year
|
$
|
2,831
|
|
|
$
|
(3,165
|
)
|
|
$
|
(518
|
)
|
Deferred tax benefit
|
3,557
|
|
|
1,416
|
|
|
689
|
|
|||
Tax effect of changes in accumulated other comprehensive income
|
(155
|
)
|
|
4,580
|
|
|
(3,336
|
)
|
|||
Balance at end of year
|
$
|
6,233
|
|
|
$
|
2,831
|
|
|
$
|
(3,165
|
)
|
|
Actual
|
|
Minimum
Capital
Requirement
|
|
Minimum
To Be Well
Capitalized Under
Prompt Corrective
Action Provisions
|
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Blue Hills Bancorp, Inc.:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital (to risk weighted assets)
|
$
|
409,545
|
|
|
32.6
|
%
|
|
$
|
100,513
|
|
|
8.0
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Tier 1 capital (to risk weighted assets)
|
395,615
|
|
|
31.5
|
|
|
50,257
|
|
|
4.0
|
|
|
N/A
|
|
|
N/A
|
|
|||
Tier 1 capital (to average assets)
|
395,615
|
|
|
23.3
|
|
|
67,820
|
|
|
4.0
|
|
|
N/A
|
|
|
N/A
|
|
|||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital (to risk weighted assets)
|
$
|
178,090
|
|
|
19.8
|
%
|
|
$
|
71,870
|
|
|
8.0
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Tier 1 capital (to risk weighted assets)
|
166,316
|
|
|
18.5
|
|
|
35,935
|
|
|
4.0
|
|
|
N/A
|
|
|
N/A
|
|
|||
Tier 1 capital (to average assets)
|
166,316
|
|
|
13.2
|
|
|
50,541
|
|
|
4.0
|
|
|
N/A
|
|
|
N/A
|
|
|||
Blue Hills Bank:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital (to risk weighted assets)
|
$
|
283,443
|
|
|
22.7
|
%
|
|
$
|
99,973
|
|
|
8.0
|
%
|
|
$
|
124,966
|
|
|
10.0
|
%
|
Tier 1 capital (to risk weighted assets)
|
269,513
|
|
|
21.6
|
|
|
49,987
|
|
|
4.0
|
|
|
74,980
|
|
|
6.0
|
|
|||
Tier 1 capital (to average assets)
|
269,513
|
|
|
15.9
|
|
|
67,707
|
|
|
4.0
|
|
|
84,634
|
|
|
5.0
|
|
|||
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital (to risk weighted assets)
|
$
|
148,872
|
|
|
16.6
|
%
|
|
$
|
71,864
|
|
|
8.0
|
%
|
|
$
|
89,831
|
|
|
10.0
|
%
|
Tier 1 capital (to risk weighted assets)
|
137,099
|
|
|
15.3
|
|
|
35,932
|
|
|
4.0
|
|
|
53,898
|
|
|
6.0
|
|
|||
Tier 1 capital (to average assets)
|
137,099
|
|
|
11.1
|
|
|
49,370
|
|
|
4.0
|
|
|
61,712
|
|
|
5.0
|
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
|
(In thousands)
|
||||||||||
Change in plan assets:
|
|
|
|
|
|
||||||
Fair value of plan assets at beginning of year
|
$
|
9,535
|
|
|
$
|
9,331
|
|
|
$
|
7,419
|
|
Actual return on plan assets
|
391
|
|
|
1,513
|
|
|
847
|
|
|||
Employer contribution
|
—
|
|
|
—
|
|
|
1,200
|
|
|||
Benefits paid
|
(483
|
)
|
|
(1,309
|
)
|
|
(135
|
)
|
|||
|
9,443
|
|
|
9,535
|
|
|
9,331
|
|
|||
Change in benefit obligation:
|
|
|
|
|
|
||||||
Benefit obligation at beginning of year
|
9,287
|
|
|
10,818
|
|
|
10,491
|
|
|||
Service cost
|
484
|
|
|
708
|
|
|
453
|
|
|||
Interest cost
|
407
|
|
|
423
|
|
|
453
|
|
|||
Actuarial loss (gain)
|
2,230
|
|
|
(1,353
|
)
|
|
(444
|
)
|
|||
Benefits paid
|
(483
|
)
|
|
(1,309
|
)
|
|
(135
|
)
|
|||
Curtailment gain
|
(1,790
|
)
|
|
—
|
|
|
—
|
|
|||
Benefit obligation at end of year
|
10,135
|
|
|
9,287
|
|
|
10,818
|
|
|||
Funded status and prepaid expense (accrued liability) at end of year
|
$
|
(692
|
)
|
|
$
|
248
|
|
|
$
|
(1,487
|
)
|
|
|
|
|
|
|
||||||
Accumulated benefit obligation at end of year
|
$
|
10,136
|
|
|
$
|
7,507
|
|
|
$
|
8,679
|
|
|
December 31,
|
||||
|
2014
|
|
2013
|
||
Discount rate
|
4.00
|
%
|
|
5.00
|
%
|
Rate of compensation increase
|
n/a
|
|
|
3.00
|
%
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
|
(In thousands)
|
||||||||||
Service cost
|
$
|
484
|
|
|
$
|
708
|
|
|
$
|
453
|
|
Interest cost
|
407
|
|
|
423
|
|
|
453
|
|
|||
Expected return on plan assets
|
(735
|
)
|
|
(728
|
)
|
|
(560
|
)
|
|||
Amortization of net actuarial loss (gain)
|
(70
|
)
|
|
104
|
|
|
117
|
|
|||
Settlement gain
|
—
|
|
|
(107
|
)
|
|
—
|
|
|||
Curtailment gain
|
$
|
(1,304
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Net periodic pension cost (benefit)
|
$
|
(1,218
|
)
|
|
$
|
400
|
|
|
$
|
463
|
|
|
Years Ended December 31,
|
|||||||
|
2014
|
|
2013
|
|
2012
|
|||
Discount rate
|
4.25
|
%
|
|
4.00
|
%
|
|
4.50
|
%
|
Expected long-term rate of return on plan assets
|
8.00
|
%
|
|
8.00
|
%
|
|
8.00
|
%
|
Rate of compensation increase
|
n/a
|
|
|
3.00
|
%
|
|
3.00
|
%
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Fair Value
|
||||||||
|
(In thousands)
|
||||||||||||||
December 31, 2014
|
|
|
|
|
|
|
|
||||||||
Collective funds
|
$
|
770
|
|
|
$
|
4,276
|
|
|
$
|
—
|
|
|
$
|
5,046
|
|
Equity securities
|
2,178
|
|
|
—
|
|
|
—
|
|
|
2,178
|
|
||||
Mutual funds
|
1,330
|
|
|
134
|
|
|
—
|
|
|
1,464
|
|
||||
Hedge funds
|
—
|
|
|
—
|
|
|
659
|
|
|
659
|
|
||||
Short-term investments
|
96
|
|
|
—
|
|
|
—
|
|
|
96
|
|
||||
|
$
|
4,374
|
|
|
$
|
4,410
|
|
|
$
|
659
|
|
|
$
|
9,443
|
|
December 31, 2013
|
|
|
|
|
|
|
|
||||||||
Collective funds
|
$
|
252
|
|
|
$
|
4,790
|
|
|
$
|
—
|
|
|
$
|
5,042
|
|
Equity securities
|
2,465
|
|
|
—
|
|
|
—
|
|
|
2,465
|
|
||||
Mutual funds
|
1,130
|
|
|
123
|
|
|
—
|
|
|
1,253
|
|
||||
Hedge funds
|
—
|
|
|
—
|
|
|
666
|
|
|
666
|
|
||||
Short-term investments
|
73
|
|
|
36
|
|
|
—
|
|
|
109
|
|
||||
|
$
|
3,920
|
|
|
$
|
4,949
|
|
|
$
|
666
|
|
|
$
|
9,535
|
|
|
|
||
|
Hedge
Funds
|
||
|
(In thousands)
|
||
|
|
||
December 31, 2012
|
$
|
658
|
|
Purchases
|
1
|
|
|
Total unrealized gains
|
7
|
|
|
December 31, 2013
|
666
|
|
|
Purchases
|
2
|
|
|
Total unrealized gains
|
(5
|
)
|
|
Redemptions
|
(4
|
)
|
|
December 31, 2014
|
$
|
659
|
|
|
|
||
Year Ending December 31,
|
Amount
|
||
|
(In thousands)
|
||
2015
|
$
|
255
|
|
2016
|
252
|
|
|
2017
|
419
|
|
|
2018
|
642
|
|
|
2019
|
359
|
|
|
2020-2024
|
3,641
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
|
(In thousands)
|
||||||
Commitments to originate loans
|
$
|
44,504
|
|
|
$
|
28,073
|
|
Letters of credit
|
7,133
|
|
|
7,147
|
|
||
Unused lines-of-credit:
|
|
|
|
||||
Commercial
|
81,607
|
|
|
50,046
|
|
||
Home equity
|
37,580
|
|
|
13,178
|
|
||
Consumer
|
16,057
|
|
|
11,136
|
|
||
Undisbursed construction loans
|
6,679
|
|
|
21,655
|
|
Year Ending December 31,
|
Amount
|
||
|
(In thousands)
|
||
2015
|
$
|
1,221
|
|
2016
|
1,356
|
|
|
2017
|
890
|
|
|
2018
|
819
|
|
|
2019
|
633
|
|
|
Thereafter
|
3,626
|
|
|
|
$
|
8,545
|
|
|
Derivative Gains
|
|
Derivative Losses
|
||||||||||||
|
Notional
Amount
|
|
Fair
Value
|
|
Notional
Amount
|
|
Fair
Value
|
||||||||
|
(In thousands)
|
||||||||||||||
December 31, 2014
|
|
|
|
|
|
|
|
||||||||
Economic hedges:
|
|
|
|
|
|
|
|
||||||||
Commercial loan level interest rate swap agreements
|
$
|
202,970
|
|
|
$
|
5,446
|
|
|
$
|
202,970
|
|
|
$
|
5,759
|
|
Other contracts
|
8,616
|
|
|
8
|
|
|
8,287
|
|
|
83
|
|
||||
Total derivatives
|
$
|
211,586
|
|
|
$
|
5,454
|
|
|
$
|
211,257
|
|
|
$
|
5,842
|
|
December 31, 2013
|
|
|
|
|
|
|
|
||||||||
Economic hedges:
|
|
|
|
|
|
|
|
||||||||
Commercial loan level interest rate swap agreements
|
$
|
171,747
|
|
|
$
|
2,482
|
|
|
$
|
171,747
|
|
|
$
|
2,379
|
|
Other contracts
|
8,932
|
|
|
5
|
|
|
7,988
|
|
|
14
|
|
||||
Total derivatives
|
$
|
180,679
|
|
|
$
|
2,487
|
|
|
$
|
179,735
|
|
|
$
|
2,393
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Fair Value
|
||||||||
|
(In thousands)
|
||||||||||||||
December 31, 2014
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
||||||||
Debt securities
|
$
|
13,219
|
|
|
$
|
359,930
|
|
|
$
|
—
|
|
|
$
|
373,149
|
|
Marketable equity securities
|
43,298
|
|
|
—
|
|
|
—
|
|
|
43,298
|
|
||||
Derivative assets
|
—
|
|
|
5,454
|
|
|
—
|
|
|
5,454
|
|
||||
Total assets
|
$
|
56,517
|
|
|
$
|
365,384
|
|
|
$
|
—
|
|
|
$
|
421,901
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
$
|
—
|
|
|
$
|
5,842
|
|
|
$
|
—
|
|
|
$
|
5,842
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2013
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Trading assets
|
$
|
—
|
|
|
$
|
750
|
|
|
$
|
—
|
|
|
$
|
750
|
|
Securities available for sale:
|
|
|
|
|
|
|
|
||||||||
Debt securities
|
128,202
|
|
|
232,869
|
|
|
—
|
|
|
361,071
|
|
||||
Marketable equity securities
|
80,235
|
|
|
—
|
|
|
—
|
|
|
80,235
|
|
||||
Derivative assets
|
—
|
|
|
2,487
|
|
|
—
|
|
|
2,487
|
|
||||
Total assets
|
$
|
208,437
|
|
|
$
|
236,106
|
|
|
$
|
—
|
|
|
$
|
444,543
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities
|
$
|
—
|
|
|
$
|
2,393
|
|
|
$
|
—
|
|
|
$
|
2,393
|
|
|
December 31, 2014
|
|
For the year ended December 31, 2014
|
||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total Losses
|
|
(In thousands)
|
||||||
Impaired loans
|
$—
|
|
$—
|
|
$120
|
|
$18
|
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||
December 31, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
60,146
|
|
|
$
|
60,146
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
60,146
|
|
Securities available for sale
|
416,447
|
|
|
56,517
|
|
|
359,930
|
|
|
—
|
|
|
416,447
|
|
|||||
Federal Home Loan Bank stock
|
11,702
|
|
|
—
|
|
|
—
|
|
|
11,702
|
|
|
11,702
|
|
|||||
Loans and loans held for sale, net
|
1,147,505
|
|
|
—
|
|
|
—
|
|
|
1,132,024
|
|
|
1,132,024
|
|
|||||
Accrued interest receivable
|
4,433
|
|
|
—
|
|
|
—
|
|
|
4,433
|
|
|
4,433
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
1,212,716
|
|
|
—
|
|
|
—
|
|
|
1,214,251
|
|
|
1,214,251
|
|
|||||
Borrowings
|
75,000
|
|
|
—
|
|
|
76,074
|
|
|
—
|
|
|
76,074
|
|
|||||
On-balance sheet derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate swap agreements:
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
5,454
|
|
|
—
|
|
|
5,454
|
|
|
—
|
|
|
5,454
|
|
|||||
Liabilities
|
5,842
|
|
|
—
|
|
|
5,842
|
|
|
—
|
|
|
5,842
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
40,316
|
|
|
$
|
40,316
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
40,316
|
|
Trading assets
|
750
|
|
|
—
|
|
|
750
|
|
|
—
|
|
|
750
|
|
|||||
Securities available for sale
|
441,306
|
|
|
208,437
|
|
|
232,869
|
|
|
—
|
|
|
441,306
|
|
|||||
Federal Home Loan Bank stock
|
10,766
|
|
|
—
|
|
|
—
|
|
|
10,766
|
|
|
10,766
|
|
|||||
Loans and loans held for sale, net
|
765,347
|
|
|
—
|
|
|
—
|
|
|
769,578
|
|
|
769,578
|
|
|||||
Accrued interest receivable
|
4,290
|
|
|
—
|
|
|
—
|
|
|
4,290
|
|
|
4,290
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
915,223
|
|
|
—
|
|
|
—
|
|
|
917,121
|
|
|
917,121
|
|
|||||
Borrowings
|
215,000
|
|
|
—
|
|
|
216,332
|
|
|
—
|
|
|
216,332
|
|
|||||
On-balance sheet derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate swap agreements:
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
2,487
|
|
|
—
|
|
|
2,482
|
|
|
—
|
|
|
2,482
|
|
|||||
Liabilities
|
2,393
|
|
|
—
|
|
|
2,379
|
|
|
—
|
|
|
2,379
|
|
|
Year ended December 31, 2014
|
||||||||||
|
Securities Available for Sale
|
|
Defined Benefit Pension Plan
|
|
Total
|
||||||
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
1,983
|
|
|
$
|
482
|
|
|
$
|
2,465
|
|
Other comprehensive income before reclassifications
|
4,942
|
|
|
(2,090
|
)
|
|
2,852
|
|
|||
Amounts reclassified
|
(2,515
|
)
|
|
(70
|
)
|
|
(2,585
|
)
|
|||
Tax effects
|
(1,018
|
)
|
|
863
|
|
|
(155
|
)
|
|||
Net current-period other comprehensive income
|
1,409
|
|
|
(1,297
|
)
|
|
112
|
|
|||
Ending balance
|
$
|
3,392
|
|
|
$
|
(815
|
)
|
|
$
|
2,577
|
|
|
|
|
|
|
|
||||||
|
Year ended December 31, 2013
|
||||||||||
|
Securities Available for Sale
|
|
Defined Benefit Pension Plan
|
|
Total
|
||||||
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
10,805
|
|
|
$
|
(802
|
)
|
|
$
|
10,003
|
|
Other comprehensive income before reclassifications
|
(9,256
|
)
|
|
2,033
|
|
|
(7,223
|
)
|
|||
Amounts reclassified
|
(4,999
|
)
|
|
104
|
|
|
(4,895
|
)
|
|||
Tax effects
|
5,433
|
|
|
(853
|
)
|
|
4,580
|
|
|||
Net current-period other comprehensive income
|
(8,822
|
)
|
|
1,284
|
|
|
(7,538
|
)
|
|||
Ending balance
|
$
|
1,983
|
|
|
$
|
482
|
|
|
$
|
2,465
|
|
|
|
|
|
|
|
||||||
|
Year ended December 31, 2012
|
||||||||||
|
Securities Available for Sale
|
|
Defined Benefit Pension Plan
|
|
Total
|
||||||
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
5,137
|
|
|
$
|
(1,311
|
)
|
|
$
|
3,826
|
|
Other comprehensive income before reclassifications
|
20,596
|
|
|
731
|
|
|
21,327
|
|
|||
Amounts reclassified
|
(11,931
|
)
|
|
117
|
|
|
(11,814
|
)
|
|||
Tax effects
|
(2,997
|
)
|
|
(339
|
)
|
|
(3,336
|
)
|
|||
Net current-period other comprehensive income
|
5,668
|
|
|
509
|
|
|
6,177
|
|
|||
Ending balance
|
$
|
10,805
|
|
|
$
|
(802
|
)
|
|
$
|
10,003
|
|
|
December 31,
|
||||||
|
2014
|
|
2013
|
||||
|
(In thousands)
|
||||||
Securities available for sale:
|
|
|
|
||||
Net unrealized gain
|
$
|
5,265
|
|
|
$
|
2,838
|
|
Tax effect
|
(1,873
|
)
|
|
(855
|
)
|
||
Net-of-tax amount
|
3,392
|
|
|
1,983
|
|
||
Defined benefit pension plan:
|
|
|
|
||||
Unrecognized net actuarial gain (loss)
|
(1,358
|
)
|
|
803
|
|
||
Tax effect
|
543
|
|
|
(321
|
)
|
||
Net-of-tax amount
|
(815
|
)
|
|
482
|
|
||
|
$
|
2,577
|
|
|
$
|
2,465
|
|
Category
|
|
Reclassification Amount
|
|
Affected Line Item on Consolidated Statements of Operations
|
||||||
|
|
Years Ended December 31,
|
|
|
||||||
|
|
2014
|
|
2013
|
|
|
||||
|
|
(In thousands)
|
|
|
||||||
Securities available for sale
|
|
(2,822
|
)
|
|
(5,091
|
)
|
|
Gains on sale of securities available for sale, net
|
||
Securities available for sale
|
|
307
|
|
|
92
|
|
|
Net impairment losses recognized in earnings
|
||
Defined benefit pension plan
|
|
(70
|
)
|
|
104
|
|
|
Salaries and employee benefits
|
||
Total before tax
|
|
(2,585
|
)
|
|
(4,895
|
)
|
|
|
||
Tax effect
|
|
964
|
|
|
1,723
|
|
|
Provision (benefit) for income taxes
|
||
Total reclassification, net of tax
|
|
$
|
(1,621
|
)
|
|
$
|
(3,172
|
)
|
|
|
|
December 31,
|
||||||
BALANCE SHEETS
|
2014
|
|
2013
|
||||
|
(In thousands)
|
||||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
—
|
|
|
$
|
19,542
|
|
Short-term investments Blue Hills Bank
|
121,632
|
|
|
79
|
|
||
Short-term investments
|
—
|
|
|
9,527
|
|
||
Total cash and cash equivalents
|
121,632
|
|
|
29,148
|
|
||
Investment in common stock of Blue Hills Bank
|
286,681
|
|
|
142,318
|
|
||
Other assets
|
3,561
|
|
|
72
|
|
||
Total assets
|
$
|
411,874
|
|
|
$
|
171,538
|
|
|
|
|
|
||||
Liabilities and Stockholders' Equity
|
|
|
|
||||
Accrued expenses
|
$
|
269
|
|
|
$
|
2
|
|
Stockholders' equity
|
411,605
|
|
|
171,536
|
|
||
Total liabilities and stockholders' equity
|
$
|
411,874
|
|
|
$
|
171,538
|
|
|
Years Ended December 31,
|
||||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||||
STATEMENTS OF OPERATIONS
|
(In thousands)
|
||||||||||||
Total income
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
20,018
|
|
||
Operating expenses
|
9,432
|
|
|
—
|
|
|
186
|
|
|||||
Income (loss) before income taxes and equity in undistributed net income (loss) of Blue Hills Bank
|
(9,432
|
)
|
|
—
|
|
|
19,832
|
|
|||||
Applicable income tax provision (benefit)
|
(3,277
|
)
|
|
—
|
|
|
(57
|
)
|
|||||
(Loss) income before equity in income of subsidiaries
|
(6,155
|
)
|
|
—
|
|
|
19,889
|
|
|||||
Equity in undistributed net income (loss) of Blue Hills Bank
|
5,972
|
|
|
2,663
|
|
|
(12,035
|
)
|
|||||
Net (loss) income
|
$
|
(183
|
)
|
|
$
|
2,663
|
|
$
|
—
|
|
$
|
7,854
|
|
|
Years Ended December 31,
|
||||||||||
|
2014
|
|
2013
|
|
2012
|
||||||
STATEMENTS OF CASH FLOWS
|
(In thousands)
|
||||||||||
|
|
|
|
|
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net (loss) income
|
$
|
(183
|
)
|
|
$
|
2,663
|
|
|
7,854
|
|
|
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
|
|
|
|
|
|
||||||
Equity in undistributed net (income) loss of Blue Hills Bank
|
(5,972
|
)
|
|
(2,663
|
)
|
|
12,035
|
|
|||
Issuance of common stock to Charitable Foundation
|
6,943
|
|
|
—
|
|
|
—
|
|
|||
Net change in other assets
|
(2,062
|
)
|
|
(44
|
)
|
|
(53
|
)
|
|||
Net change in other liabilities
|
267
|
|
|
—
|
|
|
—
|
|
|||
Net cash (used in) provided by operating activities
|
(1,007
|
)
|
|
(44
|
)
|
|
19,836
|
|
|||
|
|
|
|
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Investment in Blue Hills Bank
|
(161,489
|
)
|
|
—
|
|
|
—
|
|
|||
Net cash used for investing activities
|
(161,489
|
)
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Proceeds from the issuance of common stock
|
274,143
|
|
|
—
|
|
|
—
|
|
|||
Redemption of SBLF preferred stock
|
(18,724
|
)
|
|
—
|
|
|
—
|
|
|||
Dividend paid
|
(439
|
)
|
|
(529
|
)
|
|
(1,148
|
)
|
|||
Net cash provided by (used for) financing activities
|
254,980
|
|
|
(529
|
)
|
|
(1,148
|
)
|
|||
|
|
|
|
|
|
||||||
Net change in cash and cash equivalents
|
$
|
92,484
|
|
|
$
|
(573
|
)
|
|
$
|
18,688
|
|
Cash and cash equivalents at beginning of year
|
29,148
|
|
|
29,721
|
|
|
11,033
|
|
|||
|
|
|
|
|
|
||||||
Cash and cash equivalents at end of year
|
$
|
121,632
|
|
|
$
|
29,148
|
|
|
$
|
29,721
|
|
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
||||||||||||||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||||||||||
|
(In thousands, except share data)
|
||||||||||||||||||||||||||||||
Interest and dividend income
|
$
|
10,169
|
|
|
$
|
7,348
|
|
|
$
|
11,551
|
|
|
$
|
7,850
|
|
|
$
|
13,070
|
|
|
$
|
7,984
|
|
|
$
|
14,485
|
|
|
$
|
9,907
|
|
Interest expense
|
1,655
|
|
|
2,104
|
|
|
1,674
|
|
|
2,093
|
|
|
1,651
|
|
|
1,979
|
|
|
1,918
|
|
|
1,795
|
|
||||||||
Net interest and dividend income
|
8,514
|
|
|
5,244
|
|
|
9,877
|
|
|
5,757
|
|
|
11,419
|
|
|
6,005
|
|
|
12,567
|
|
|
8,112
|
|
||||||||
Provision for loan losses
|
714
|
|
|
864
|
|
|
959
|
|
|
1,092
|
|
|
1,438
|
|
|
1,136
|
|
|
270
|
|
|
1,001
|
|
||||||||
Other noninterest income
|
1,088
|
|
|
1,152
|
|
|
1,119
|
|
|
3,579
|
|
|
3,025
|
|
|
1,893
|
|
|
1,860
|
|
|
1,394
|
|
||||||||
Realized securities gains and impairment losses, net
|
541
|
|
|
4,290
|
|
|
1,191
|
|
|
86
|
|
|
349
|
|
|
1,253
|
|
|
434
|
|
|
(633
|
)
|
||||||||
Total noninterest income
|
1,629
|
|
|
5,442
|
|
|
2,310
|
|
|
3,665
|
|
|
3,374
|
|
|
3,146
|
|
|
2,294
|
|
|
761
|
|
||||||||
Total noninterest expenses
|
10,256
|
|
|
7,470
|
|
|
10,662
|
|
|
7,622
|
|
|
17,748
|
|
|
7,610
|
|
|
10,742
|
|
|
8,955
|
|
||||||||
Provision (benefit) for income taxes
|
(428
|
)
|
|
818
|
|
|
137
|
|
|
(421
|
)
|
|
(1,435
|
)
|
|
(214
|
)
|
|
1,104
|
|
|
(468
|
)
|
||||||||
Net income (loss)
|
$
|
(399
|
)
|
|
$
|
1,534
|
|
|
$
|
429
|
|
|
$
|
1,129
|
|
|
$
|
(2,958
|
)
|
|
$
|
619
|
|
|
$
|
2,745
|
|
|
$
|
(615
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic earnings per share
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
|
$
|
0.10
|
|
|
n/a
|
|
|||||||||||||
Diluted earnings per share
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
|
$
|
0.10
|
|
|
n/a
|
|
|||||||||||||
Weighted average common shares (basic)
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
|
26,243,957
|
|
|
n/a
|
|
||||||||||||||
Weighted average common shares (diluted)
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
|
n/a
|
|
26,243,957
|
|
|
n/a
|
|
ITEM 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM 9A.
|
CONTROLS AND PROCEDURES
|
ITEM 9B.
|
OTHER INFORMATION
|
ITEM 10.
|
DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT AND CORPORATE GOVERNANCE
|
Name
|
Age
|
Positions Held
(1)
|
William M. Parent
|
53
|
President and Chief Executive Officer of Blue Hills Bank and Blue Hills Bancorp
|
James E. Kivlehan
|
54
|
Executive Vice President, Chief Financial Officer of Blue Hills Bank and Blue Hills Bancorp
|
Thomas E. O’Leary
|
62
|
Executive Vice President, Commercial Banking
|
Thomas R. Sommerfield
|
59
|
Senior Vice President, Chief Risk Officer
|
Name
|
Position(s) Held With
Blue Hills Bancorp
|
Age
|
Director
Since
|
Current Term Expires
|
David J. Houston, Jr.
|
Chairman of the Board
|
68
|
1977
|
2017
|
George E. Clancy
|
Director
|
56
|
1996
|
2016
|
Ken D’Amato
(1)
|
Director
|
54
|
2010
|
2015
|
Brian G. Leary
|
Director
|
59
|
2012
|
2015
|
Peter J. Manning
|
Director
|
75
|
2010
|
2017
|
Karen B. O’Connell
(2)
|
Director
|
51
|
2003
|
2015
|
William M. Parent
|
President, Chief Executive Officer and Director
|
53
|
2010
|
2016
|
Ronald K. Perry
|
Director
|
56
|
2012
|
2015
|
David A. Powers
|
Director
|
66
|
1998
|
2016
|
Janice L. Shields
|
Director
|
67
|
2010
|
2017
|
Scott Smith
|
Director
|
49
|
1998
|
2016
|
•
|
A statement that the writer is a stockholder and is proposing a candidate for consideration by the Nominating and Corporate Governance Committee;
|
•
|
The name and address of the stockholder as they appear on the Company’s books, and of the beneficial owner, if any, on whose behalf the nomination is made;
|
•
|
The class or series and number of shares of the Company’s capital stock that are owned beneficially or of record by such stockholder and such beneficial owner;
|
•
|
A description of all arrangements or understandings between such stockholder and each proposed nominee and any other person or persons (including their names) pursuant to which the nomination(s) are to be made by such stockholder;
|
•
|
A representation that such stockholder intends to appear in person or by proxy at the meeting to nominate the nominee named in the stockholder’s notice;
|
•
|
The name, age, personal and business address of the candidate, the principal occupation or employment of the candidate;
|
•
|
The candidate’s written consent to serve as a director;
|
•
|
A statement of the candidate’s business and educational experience and all other information relating to such person that would indicates such person’s qualification to serve on the Company’s Board of Directors; and
|
•
|
Such other information regarding the candidate or the stockholder as would be required to be included in the Company’s proxy statement pursuant to SEC Regulation 14A.
|
•
|
To attract, retain and motivate an experienced, competent executive management team;
|
•
|
To reward the executive management team for the enhancement of shareholder value based on annual earnings performance and the market price of Blue Hills Bancorp’s stock;
|
•
|
To provide compensation rewards that are adequately balanced between short-term and long-term performance goals;
|
•
|
To encourage ownership of Blue Hills Bancorp’s common stock through stock-based compensation; and
|
•
|
To maintain compensation levels that are competitive with other financial institutions and particularly those in Blue Hills Bancorp’s peer group based on asset size and market area.
|
Summary Compensation Table
|
|||||||
Name and Principal Position
|
Year
|
Salary
($)
|
Bonus
(1)
($)
|
Non-equity incentive plan compensation
($)
(2)
|
Nonqualified
Deferred
Compensation Earnings
($)
(3)
|
All Other Compensation
($)
(4)
|
Total
($)
|
William M. Parent
,
President and Chief
Executive Officer
|
2014
|
500,000
|
60,000
|
300,000
|
—
|
24,145
|
884,145
|
2013
|
472,313
|
—
|
267,346
|
1,612
|
141,700
|
882,971
|
|
|
|
|
|
|
|
|
|
James E. Kivlehan,
Executive Vice President
and Chief Financial Officer
|
2014
|
253,750
|
105,812
|
114,188
|
—
|
11,886
|
485,636
|
2013
|
78,847
(5)
|
56,200
(6)
|
37,500
|
—
|
50,000
|
222,547
|
|
|
|
|
|
|
|
|
|
Thomas E. O’Leary,
Executive Vice President,
Commercial Banking
|
2014
|
250,000
|
102,500
|
112,500
|
—
|
24,145
|
489,145
|
2013
|
225,000
|
10,000
|
175,000
|
496
|
40,000
|
450,496
|
(1)
|
Consists of bonus amounts earned above the maximum achievement level under the short-term incentive plan for the year ended December 31, 2014.
|
(2)
|
For calendar year 2014, consists of amounts earned under the short-term incentive Plan. For calendar year 2013, consists of amounts earned under the short-term and long term incentive plans. For 2013, Messrs. Parent, O’Leary and Kivlehan earned $133,673, $95,000 and $25,000, respectively, under the short-term incentive plan. Similarly, for 2013, Messrs. Parent, O’Leary and Kivlehan, earned $133,673, $80,000 and $12,500, respectively, under the long-term incentive plan (i.e., the Blue Hills Bank Phantom Stock Plan).
|
(3)
|
Reflects above-market interest earned in the Blue Hills Bank Amended and Restated Supplemental Executive Retirement Plan. The Plan terminated in the fiscal year ended December 31, 2013.
|
(4)
|
Consists of the following payments:
|
All Other Compensation
|
|||||
Name
|
Year
|
Perquisites
(a)
($)
|
401(k) Plan
(b)
($)
|
ESOP
(c)
($)
|
Total
($)
|
William M. Parent
|
2014
|
—
|
7,800
|
16,345
|
24,145
|
James E. Kivlehan
|
2014
|
—
|
7,800
|
4,086
|
11,886
|
Thomas E. O'Leary
|
2014
|
—
|
7,800
|
16,345
|
24,145
|
(a)
|
For the year ended December 31, 2014, none of the named executive officers received perquisites or personal benefits that, in the aggregate, were greater than or equal to $10,000.
|
(b)
|
Represents the profit sharing contribution made by Blue Hills Bank to the Named Executive Officer’s 401(k) Plan account for the plan year 2014.
|
(c)
|
Represents the aggregate value of the shares allocated to the Named Executive Officer’s ESOP account for plan year, the value of which was determined based on a $13.58 fair market value of Blue Hills Bancorp common stock as of December 31, 2014.
|
(5)
|
James E. Kivlehan was hired September 9, 2013 as Executive Vice President and Chief Financial Officer. Mr. Kivlehan’s annual rate of base salary was $250,000 in 2013.
|
(6)
|
Represents a sign-on bonus paid to Mr. Kivlehan during 2013.
|
|
Bonus as a % of Salary
|
Goal Weighting
|
|||
Position
|
Threshold
|
Target
|
Maximum
|
Bank
|
Dept./Individual
|
President/CEO
|
20%
|
40%
|
60%
|
100%
|
−
|
EVPs
|
15%
|
30%
|
45%
|
75%
|
25%
|
Director Compensation Table for the Year Ended December 31, 2014
|
||
|
Fees earned or paid in cash ($)
|
|
Name
|
|
|
David Houston
|
67,720
|
|
George Clancy
|
53,720
|
|
Ken D’Amato
(1)
|
39,720
|
|
Brian Leary
|
44,220
|
|
Peter Manning
|
56,610
|
|
Karen O’Connell
(2)
|
33,110
|
|
Ron Perry
|
48,220
|
|
David Powers
|
33,220
|
|
Jan Shields
|
45,970
|
|
Scott Smith
|
51,220
|
|
Thomas Menino
(3)
|
11,610
|
|
Total
|
485,340
|
|
(1)
|
Mr. D’Amato resigned as a director in January 2015.
|
(2)
|
Ms. O’Connell died February 26, 2015
|
(3)
|
Mr. Menino died October 30, 2014.
|
ITEM 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
*
|
Less than 1%.
|
(1)
|
In accordance with Rule 13d-3 under the Securities Exchange Act of 1934, a person is deemed to be the beneficial owner for purposes of this table, of any shares of common stock if he has shared voting or investment power with respect to such security, or has a right to acquire beneficial ownership at any time within 60 days from the date as of which beneficial ownership is being determined. As used herein, “voting power” is the power to vote or direct the voting of shares and “investment power” is the power to dispose or direct the disposition of shares, and includes all shares held directly as well as by spouses and minor children, in trust and other indirect ownership, over which shares the named individuals effectively exercise sole or shared voting or investment power.
|
(2)
|
None of the shares held in our employee stock ownership plan have been allocated to participant accounts.
|
(3)
|
Includes 41,000 shares held in SERP Rabbi Trust, 28,000 shares held in family trust, 8,580 shares held in 401k, and 3,650 shares held in an IRA.
|
(4)
|
Includes 44,532 shares held in an IRA, 5,000 shares held in a spouse's IRA, 2,613 shares held in SERP Rabbi Trust and 1,000 shares held in a business partnership.
|
(5)
|
Includes 7,500 shares held in a spouse's IRA and 2,609 shares held in SERP Rabbi Trust.
|
(6)
|
Includes 10,896 shares held in an IRA and 1,675 shares held in SERP Rabbi Trust.
|
(7)
|
Includes 20,851 shares held in an IRA and 2,206 shares held in SERP Rabbi Trust.
|
(8)
|
Includes 2,613 shares held in SERP Rabbi Trust.
|
(9)
|
Includes 13,035 shares held in an IRA and 1,651 shares held in SERP Rabbi Trust.
|
(10)
|
Includes 2,613 shares held in SERP Rabbi Trust.
|
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
ITEM 14.
|
PRINCIPAL ACCOUNTING FEES AND SERVICES
|
|
2014
|
2013
|
||||
Audit fees
|
$
|
384,400
|
|
$
|
150,575
|
|
Audit-Related fees
|
—
|
|
—
|
|
||
All other fees
|
94,649
|
|
86,267
|
|
ITEM 15.
|
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|
(A)
|
Report of Independent Registered Public Accounting Firm
|
(B)
|
Consolidated Balance Sheets as of December 31, 2014 and 2013
|
(C)
|
Consolidated Statements of Operations for the Years ended December 31, 2014, 2013 and 2012
|
(D)
|
Consolidated Statements of Comprehensive Income (Loss) for the Years ended December 31, 2014, 2013 and 2012
|
(E)
|
Consolidated Statements of Changes in Stockholders’ Equity for the Years ended December 31, 2014, 2013 and 2012
|
(F)
|
Consolidated Statements of Cash Flows for the Years ended December 31, 2014, 2013 and 2012
|
(G)
|
Notes to Consolidated Financial Statements.
|
|
|
3.1
|
Articles of Incorporation of Blue Hills Bancorp, Inc.*
|
3.2
|
Bylaws of Blue Hills Bancorp, Inc.*
|
4
|
Form of Common Stock Certificate of Blue Hills Bancorp, Inc.*
|
10.1
|
Amended and Restated Employment Agreement between Hyde Park Bancorp, Inc., Hyde Park Bancorp, MHC, Blue Hills Bank and William M. Parent*
+
|
10.2
|
Form of Two-Year Change in Control Agreement between Hyde Park Bancorp, Inc., Hyde Park Bancorp, MHC, Blue Hills and certain executive officers*
+
|
10.3
|
Amended and Restated Blue Hills Bank Supplemental Executive Retirement Plan*
+
|
10.4
|
Amended and Restated Blue Hills Bank Director Supplemental Executive Retirement Plan*
+
|
10.5
|
Blue Hills Bank Phantom Stock Plan*
+
|
10.6
|
Blue Hills Bank Amendment One to the Phantom Stock Plan*
+
|
10.7
|
Form of Blue Hills Bank Employee Stock Ownership Plan*
+
|
10.8
|
Severance and Change in Control Agreement with James E. Kivlehan.
+
|
21
|
Subsidiaries of Registrant*
|
23
|
Consent of Independent Registered Public Accounting Firm
|
31.1
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
31.2
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
32
|
Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
101
|
The following financial statements for the year ended December 31, 2014, formatted in XBRL, which are furnished, and not filed: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income (Loss), (iv) Consolidated Statements of Changes in Stockholders’ Equity (v) Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements.
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
XBRL Taxonomy Extension Labels Linkbase Document
|
101.PRE
|
XBRL XBRL Taxonomy Extension Presentation Linkbase Document
|
*
|
Incorporated by reference to the Registration Statement on Form S-1 of Blue Hills Bancorp, Inc. (File No. 333-194486), originally filed with the Securities and Exchange Commission on March 11, 2014.
|
|
|
BLUE HILLS BANCORP, INC.
(Registrant)
|
|
|
|
|
|
Date: March 26, 2015
|
|
By:
|
|
|
|
|
William M. Parent
President and Chief Executive Officer
(Duly Authorized Representative)
|
Signatures
|
|
Title
|
|
Date
|
|
|
|
|
|
William M. Parent
|
|
President, Chief Executive Officer and Director (Principal Executive Officer)
|
|
March 26, 2015
|
|
|
|
|
|
James E. Kivlehan
|
|
Executive Vice President and Chief Financial Officer (Principal Accounting and Financial Officer)
|
|
March 26, 2015
|
|
|
|
|
|
David J. Houston, Jr.
|
|
Chairman of the Board
|
|
March 26, 2015
|
|
|
|
|
|
George E. Clancy
|
|
Director
|
|
March 26, 2015
|
|
|
|
|
|
Brian G. Leary
|
|
Director
|
|
March 26, 2015
|
|
|
|
|
|
Peter J. Manning
|
|
Director
|
|
March 26, 2015
|
|
|
|
|
|
Ronald K. Perry
|
|
Director
|
|
March 26, 2015
|
|
|
|
|
|
David Powers
|
|
Director
|
|
March 26, 2015
|
|
|
|
|
|
Janice L. Shields
|
|
Director
|
|
March 26, 2015
|
|
|
|
|
|
Scott Smith
|
|
Director
|
|
March 26, 2015
|
|
|
/s/ Wolf & Company, P.C.
|
Boston, Massachusetts
|
March 26, 2015
|
|
|
|
|
Date: March 26, 2015
|
|
|
|
|
|
|
William M. Parent
President and Chief Executive Officer
|
|
|
Date: March 26, 2015
|
|
|
James E. Kivlehan
Executive Vice President and Chief Financial Officer
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
|
Date: March 26, 2015
|
|
|
William M. Parent
President and Chief Executive Officer
|
|
|
Date: March 26, 2015
|
|
|
James E. Kivlehan
Executive Vice President and Chief Financial Officer
|