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.)
|
500 River Ridge Drive
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
|
þ
|
Non-Accelerated Filer
|
o
|
Smaller Reporting Company
|
o
|
|
|
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.
|
||
|
PART III
|
|
Item 10.
|
||
Item 11.
|
||
Item 12.
|
||
Item 13.
|
||
Item 14.
|
||
|
PART IV
|
|
Item 15.
|
||
Item 16.
|
||
|
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 business strategy, which includes significant loan and deposit 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 asset quality including an unanticipated credit deterioration in our loan portfolio;
|
•
|
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;
|
•
|
changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees, capital requirements and the corporate tax rate;
|
•
|
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, or the Securities and Exchange Commission;
|
•
|
changes in our organization, compensation and benefit plans;
|
•
|
changes in our financial condition or results of operations that reduce capital available to pay dividends;
|
•
|
changes in the financial condition or future prospects of issuers of securities that we own; and
|
•
|
cyber security attacks or intrusions that could adversely impact our businesses.
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||||||||||||
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
1-4 family residential
|
$
|
851,154
|
|
|
44.12
|
%
|
|
$
|
599,938
|
|
|
38.98
|
%
|
|
$
|
460,273
|
|
|
40.13
|
%
|
|
$
|
364,942
|
|
|
47.26
|
%
|
|
$
|
311,713
|
|
|
63.27
|
%
|
Home equity
|
78,719
|
|
|
4.08
|
|
|
77,399
|
|
|
5.03
|
|
|
61,750
|
|
|
5.38
|
|
|
25,535
|
|
|
3.31
|
|
|
25,062
|
|
|
5.09
|
|
|||||
Commercial
|
687,289
|
|
|
35.63
|
|
|
561,203
|
|
|
36.46
|
|
|
387,807
|
|
|
33.81
|
|
|
228,688
|
|
|
29.61
|
|
|
100,904
|
|
|
20.48
|
|
|||||
Construction
|
76,351
|
|
|
3.96
|
|
|
79,773
|
|
|
5.18
|
|
|
53,606
|
|
|
4.67
|
|
|
16,559
|
|
|
2.14
|
|
|
5,753
|
|
|
1.17
|
|
|||||
Total real estate loans
|
1,693,513
|
|
|
87.79
|
|
|
1,318,313
|
|
|
85.65
|
|
|
963,436
|
|
|
83.99
|
|
|
635,724
|
|
|
82.32
|
|
|
443,432
|
|
|
90.01
|
|
|||||
Commercial business loans
|
206,234
|
|
|
10.69
|
|
|
182,677
|
|
|
11.87
|
|
|
151,823
|
|
|
13.24
|
|
|
111,154
|
|
|
14.39
|
|
|
33,762
|
|
|
6.85
|
|
|||||
Consumer loans
|
29,281
|
|
|
1.52
|
|
|
38,186
|
|
|
2.48
|
|
|
31,778
|
|
|
2.77
|
|
|
25,372
|
|
|
3.29
|
|
|
15,473
|
|
|
3.14
|
|
|||||
Total loans
|
1,929,028
|
|
|
100.00
|
%
|
|
1,539,176
|
|
|
100.00
|
%
|
|
1,147,037
|
|
|
100.00
|
%
|
|
772,250
|
|
|
100.00
|
%
|
|
492,667
|
|
|
100.00
|
%
|
|||||
Other items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Allowance for loan losses
|
(18,750
|
)
|
|
|
|
(17,102
|
)
|
|
|
|
(12,973
|
)
|
|
|
|
(9,671
|
)
|
|
|
|
(5,550
|
)
|
|
|
||||||||||
Deferred loan costs (fees) and discounts
|
2,593
|
|
|
|
|
1,201
|
|
|
|
|
(1,150
|
)
|
|
|
|
2,003
|
|
|
|
|
1,090
|
|
|
|
||||||||||
Total loans, net
|
$
|
1,912,871
|
|
|
|
|
$
|
1,523,275
|
|
|
|
|
$
|
1,132,914
|
|
|
|
|
$
|
764,582
|
|
|
|
|
$
|
488,207
|
|
|
|
|
1-4 Family
Residential Loans |
|
Home Equity Loans
and Lines of Credit
|
|
Commercial Real
Estate Loans
|
|
Construction Loans
|
||||||||||||||||||||
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||
Due During the Years
Ending December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2017
|
$
|
1,528
|
|
|
3.53
|
%
|
|
$
|
11
|
|
|
6.62
|
%
|
|
$
|
47,296
|
|
|
3.35
|
%
|
|
$
|
5,694
|
|
|
5.18
|
%
|
2018
|
652
|
|
|
5.15
|
|
|
10
|
|
|
4.75
|
|
|
55,779
|
|
|
3.18
|
|
|
35,699
|
|
|
3.28
|
|
||||
2019
|
343
|
|
|
4.57
|
|
|
18
|
|
|
5.52
|
|
|
69,253
|
|
|
3.07
|
|
|
—
|
|
|
—
|
|
||||
2020 to 2021
|
884
|
|
|
5.15
|
|
|
240
|
|
|
5.23
|
|
|
103,676
|
|
|
3.01
|
|
|
—
|
|
|
—
|
|
||||
2022 to 2026
|
14,875
|
|
|
3.72
|
|
|
1,038
|
|
|
5.73
|
|
|
377,348
|
|
|
3.18
|
|
|
10,593
|
|
|
4.42
|
|
||||
2027 to 2031
|
52,892
|
|
|
3.33
|
|
|
5,092
|
|
|
4.60
|
|
|
20,795
|
|
|
3.23
|
|
|
8,388
|
|
|
4.32
|
|
||||
2032 and beyond
|
779,980
|
|
|
3.67
|
|
|
72,310
|
|
|
3.39
|
|
|
13,142
|
|
|
3.64
|
|
|
15,977
|
|
|
5.17
|
|
||||
Total
|
$
|
851,154
|
|
|
3.65
|
%
|
|
$
|
78,719
|
|
|
3.51
|
%
|
|
$
|
687,289
|
|
|
3.17
|
%
|
|
$
|
76,351
|
|
|
4.09
|
%
|
|
Commercial Business
Loans
|
|
Consumer Loans
|
|
Total Loans
|
|||||||||||||||
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Due During the Years
Ending December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2017
|
$
|
14,701
|
|
|
4.03
|
%
|
|
$
|
269
|
|
|
10.99
|
%
|
|
$
|
69,499
|
|
|
3.68
|
%
|
2018
|
18,545
|
|
|
3.43
|
|
|
179
|
|
|
6.49
|
|
|
110,864
|
|
|
3.27
|
|
|||
2019
|
21,038
|
|
|
3.55
|
|
|
444
|
|
|
7.31
|
|
|
91,096
|
|
|
3.21
|
|
|||
2020 to 2021
|
79,578
|
|
|
3.51
|
|
|
2,479
|
|
|
5.42
|
|
|
186,857
|
|
|
3.27
|
|
|||
2022 to 2026
|
46,010
|
|
|
4.56
|
|
|
21,162
|
|
|
4.73
|
|
|
471,026
|
|
|
3.44
|
|
|||
2027 to 2031
|
—
|
|
|
—
|
|
|
4,738
|
|
|
5.52
|
|
|
91,905
|
|
|
3.58
|
|
|||
2032 and beyond
|
26,362
|
|
|
3.50
|
|
|
10
|
|
|
9.00
|
|
|
907,781
|
|
|
3.67
|
|
|||
Total
|
$
|
206,234
|
|
|
3.78
|
%
|
|
$
|
29,281
|
|
|
5.03
|
%
|
|
$
|
1,929,028
|
|
|
3.53
|
%
|
|
Due After December 31, 2017
|
||||||||||
|
Fixed
|
|
Adjustable
|
|
Total
|
||||||
|
(In thousands)
|
||||||||||
Real estate loans and lines:
|
|
|
|
|
|
||||||
1-4 family residential
|
$
|
591,655
|
|
|
$
|
257,971
|
|
|
$
|
849,626
|
|
Home equity
|
3,070
|
|
|
75,638
|
|
|
78,708
|
|
|||
Commercial real estate
|
56,203
|
|
|
583,790
|
|
|
639,993
|
|
|||
Construction
|
12,770
|
|
|
57,887
|
|
|
70,657
|
|
|||
Total real estate loans and lines
|
663,698
|
|
|
975,286
|
|
|
1,638,984
|
|
|||
Commercial business loans
|
39,695
|
|
|
151,838
|
|
|
191,533
|
|
|||
Consumer loans
|
29,012
|
|
|
—
|
|
|
29,012
|
|
|||
Total loans
|
$
|
732,405
|
|
|
$
|
1,127,124
|
|
|
$
|
1,859,529
|
|
|
For the Years Ended December 31,
|
||||||||||||||||||
|
2016
|
|
2015
(4)
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Originations by type
:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
1-4 family
|
$
|
508,447
|
|
|
$
|
224,316
|
|
|
$
|
154,188
|
|
|
$
|
70,107
|
|
|
$
|
75,988
|
|
Commercial real estate
|
170,210
|
|
|
217,433
|
|
|
125,370
|
|
|
142,768
|
|
|
96,558
|
|
|||||
Construction
|
65,087
|
|
|
45,102
|
|
|
35,991
|
|
|
1,327
|
|
|
3,705
|
|
|||||
Home equity
|
15,769
|
|
|
24,721
|
|
|
7,988
|
|
|
3,235
|
|
|
2,096
|
|
|||||
Total real estate loans
|
759,513
|
|
|
511,572
|
|
|
323,537
|
|
|
217,437
|
|
|
178,347
|
|
|||||
Commercial business loans
|
55,297
|
|
|
56,066
|
|
|
31,627
|
|
|
50,177
|
|
|
10,928
|
|
|||||
Consumer loans
|
2,850
|
|
|
3,049
|
|
|
1,204
|
|
|
132
|
|
|
605
|
|
|||||
Total loans originated
|
817,660
|
|
|
570,687
|
|
|
356,368
|
|
|
267,746
|
|
|
189,880
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
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
|
12,955
|
|
|
35,917
|
|
|
65,091
|
|
|
104,556
|
|
|
89,136
|
|
|||||
Commercial real estate
|
2,168
|
|
|
—
|
|
|
—
|
|
|
13,168
|
|
|
19,055
|
|
|||||
Construction
|
19,203
|
|
|
26,163
|
|
|
22,262
|
|
|
18,534
|
|
|
494
|
|
|||||
Home equity
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,304
|
|
|||||
Total real estate loans
|
34,326
|
|
|
62,080
|
|
|
87,353
|
|
|
136,258
|
|
|
130,989
|
|
|||||
Commercial business loans
|
63,949
|
|
|
73,362
|
|
|
87,502
|
|
|
88,846
|
|
|
36,469
|
|
|||||
Consumer loans
|
—
|
|
|
14,803
|
|
|
15,654
|
|
|
17,367
|
|
|
16,906
|
|
|||||
Total loans purchased
|
98,275
|
|
|
150,245
|
|
|
190,509
|
|
|
242,471
|
|
|
184,364
|
|
|||||
Sales
(3):
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
1-4 family
|
(128,945
|
)
|
|
(39,080
|
)
|
|
(41,417
|
)
|
|
(51,022
|
)
|
|
(24,957
|
)
|
|||||
Commercial real estate
|
(13,807
|
)
|
|
—
|
|
|
—
|
|
|
(3,600
|
)
|
|
(15,806
|
)
|
|||||
Construction
|
(15,830
|
)
|
|
(7,517
|
)
|
|
(95
|
)
|
|
—
|
|
|
—
|
|
|||||
Total real estate loans
|
(158,582
|
)
|
|
(46,597
|
)
|
|
(41,512
|
)
|
|
(54,622
|
)
|
|
(40,763
|
)
|
|||||
Commercial business loans
|
(20,902
|
)
|
|
(796
|
)
|
|
(208
|
)
|
|
(11,868
|
)
|
|
—
|
|
|||||
Total loans sold
|
(179,484
|
)
|
|
(47,393
|
)
|
|
(41,720
|
)
|
|
(66,490
|
)
|
|
(40,763
|
)
|
|||||
Principal repayments
:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total principal repayments
|
(356,715
|
)
|
|
(283,114
|
)
|
|
(218,798
|
)
|
|
(163,394
|
)
|
|
(119,928
|
)
|
|||||
Net increase
|
$
|
379,736
|
|
|
$
|
390,425
|
|
|
$
|
388,628
|
|
|
$
|
280,333
|
|
|
$
|
213,553
|
|
(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.
|
(4)
|
Certain amounts in the 2015 presentation have been reclassified to conform to the 2016 presentation.
|
|
At December 31,
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Non-accrual loans:
|
|
|
|
|
|
|
|
|
|
||||||||||
1-4 family
|
$
|
6,478
|
|
|
$
|
5,688
|
|
|
$
|
3,876
|
|
|
$
|
1,706
|
|
|
$
|
2,209
|
|
Home equity loans and lines
|
1,153
|
|
|
270
|
|
|
578
|
|
|
36
|
|
|
—
|
|
|||||
Commercial real estate
|
941
|
|
|
4,631
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial business
|
241
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
170
|
|
|
145
|
|
|
27
|
|
|
—
|
|
|
—
|
|
|||||
Total non-accrual loans
|
8,983
|
|
|
10,744
|
|
|
4,481
|
|
|
1,742
|
|
|
2,209
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans delinquent 90 days or greater and still accruing
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other real estate owned
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total non-performing assets
|
$
|
8,983
|
|
|
$
|
10,744
|
|
|
$
|
4,481
|
|
|
$
|
1,742
|
|
|
$
|
2,209
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ratios:
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-performing loans to total loans
|
0.47
|
%
|
|
0.70
|
%
|
|
0.39
|
%
|
|
0.23
|
%
|
|
0.45
|
%
|
|||||
Non-performing assets to total assets
|
0.36
|
%
|
|
0.51
|
%
|
|
0.26
|
%
|
|
0.13
|
%
|
|
0.18
|
%
|
|
At December 31,
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Performing troubled debt restructurings
|
$
|
138
|
|
|
$
|
148
|
|
|
$
|
255
|
|
|
$
|
279
|
|
|
$
|
—
|
|
Non-accrual troubled debt restructurings
|
1,274
|
|
|
1,183
|
|
|
467
|
|
|
260
|
|
|
568
|
|
|||||
Total
|
$
|
1,412
|
|
|
$
|
1,331
|
|
|
$
|
722
|
|
|
$
|
539
|
|
|
$
|
568
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Performing troubled debt restructurings as a % of total loans
|
0.01
|
%
|
|
0.01
|
%
|
|
0.02
|
%
|
|
0.04
|
%
|
|
—
|
%
|
|||||
Non-accrual troubled debt restructurings as a % of total loans
|
0.07
|
%
|
|
0.08
|
%
|
|
0.04
|
%
|
|
0.03
|
%
|
|
0.12
|
%
|
|||||
Total troubled debt restructurings as a % of total loans
|
0.08
|
%
|
|
0.09
|
%
|
|
0.06
|
%
|
|
0.07
|
%
|
|
0.12
|
%
|
|
Loans Delinquent For
|
|
Total
|
|||||||||||||||||
|
60-89 Days
|
|
90 Days and Over
|
|
||||||||||||||||
|
Number
|
|
Amount
|
|
Number
|
|
Amount
|
|
Number
|
|
Amount
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
At December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
1-4 Family
|
2
|
|
|
$
|
373
|
|
|
14
|
|
|
$
|
2,322
|
|
|
16
|
|
|
$
|
2,695
|
|
Home equity
|
4
|
|
|
496
|
|
|
6
|
|
|
775
|
|
|
10
|
|
|
1,271
|
|
|||
Commercial business
|
1
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
13
|
|
|||
Consumer loans
|
2
|
|
|
5
|
|
|
1
|
|
|
7
|
|
|
3
|
|
|
12
|
|
|||
Total loans
|
9
|
|
|
$
|
887
|
|
|
21
|
|
|
$
|
3,104
|
|
|
30
|
|
|
$
|
3,991
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
At December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
1-4 Family
|
—
|
|
|
$
|
—
|
|
|
5
|
|
|
$
|
990
|
|
|
5
|
|
|
$
|
990
|
|
Home equity
|
1
|
|
|
19
|
|
|
2
|
|
|
176
|
|
|
3
|
|
|
195
|
|
|||
Commercial real estate (1)
|
1
|
|
|
1,249
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1,249
|
|
|||
Consumer loans
|
1
|
|
|
80
|
|
|
2
|
|
|
120
|
|
|
3
|
|
|
200
|
|
|||
Total loans
|
3
|
|
|
$
|
1,348
|
|
|
9
|
|
|
$
|
1,286
|
|
|
12
|
|
|
$
|
2,634
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
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,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In thousands)
|
||||||||||
Classified loans:
|
|
|
|
|
|
||||||
Substandard
|
$
|
8,452
|
|
|
$
|
6,963
|
|
|
$
|
1,362
|
|
Doubtful
|
645
|
|
|
712
|
|
|
709
|
|
|||
Loss
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total classified loans
|
9,097
|
|
|
7,675
|
|
|
2,071
|
|
|||
Special mention
|
31,857
|
|
|
13,421
|
|
|
4,966
|
|
|||
Total criticized loans
|
$
|
40,954
|
|
|
$
|
21,096
|
|
|
$
|
7,037
|
|
|
At or For the Years Ended December 31,
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Balance at beginning of year
|
$
|
17,102
|
|
|
$
|
12,973
|
|
|
$
|
9,671
|
|
|
$
|
5,550
|
|
|
$
|
3,501
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
1-4 family
|
—
|
|
|
—
|
|
|
(18
|
)
|
|
(165
|
)
|
|
(714
|
)
|
|||||
Commercial real estate
|
(321
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial business
|
(3,098
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Consumer loans
|
(56
|
)
|
|
(43
|
)
|
|
(61
|
)
|
|
(44
|
)
|
|
—
|
|
|||||
Total charge-offs
|
(3,475
|
)
|
|
(43
|
)
|
|
(79
|
)
|
|
(209
|
)
|
|
(714
|
)
|
|||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
1-4 family
|
100
|
|
|
82
|
|
|
—
|
|
|
236
|
|
|
402
|
|
|||||
Commercial real estate
|
101
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Commercial business
|
37
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total recoveries
|
238
|
|
|
82
|
|
|
—
|
|
|
236
|
|
|
402
|
|
|||||
Net (charge-offs) recoveries
|
(3,237
|
)
|
|
39
|
|
|
(79
|
)
|
|
27
|
|
|
(312
|
)
|
|||||
Provision for loan losses
|
4,885
|
|
|
4,090
|
|
|
3,381
|
|
|
4,094
|
|
|
2,361
|
|
|||||
Balance at end of year
|
$
|
18,750
|
|
|
$
|
17,102
|
|
|
$
|
12,973
|
|
|
$
|
9,671
|
|
|
$
|
5,550
|
|
Ratios:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net (charge-offs) recoveries to average loans outstanding
|
(0.19
|
)%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
(0.08
|
)%
|
|||||
Allowance for loan losses to non-performing loans at end of year
|
209
|
%
|
|
159
|
%
|
|
290
|
%
|
|
555
|
%
|
|
251
|
%
|
|||||
Allowance for loan losses to total loans at end of year (1)
|
0.97
|
%
|
|
1.11
|
%
|
|
1.13
|
%
|
|
1.25
|
%
|
|
1.13
|
%
|
(1)
|
Total loans do not include deferred costs and discounts.
|
|
At December 31,
|
|||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||
|
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
|
$
|
4,846
|
|
|
44.12
|
%
|
|
$
|
3,916
|
|
|
38.98
|
%
|
|
$
|
3,222
|
|
|
40.13
|
%
|
Home equity
|
537
|
|
|
4.08
|
|
|
636
|
|
|
5.03
|
|
|
340
|
|
|
5.38
|
|
|||
Commercial
|
8,374
|
|
|
35.63
|
|
|
7,147
|
|
|
36.46
|
|
|
3,551
|
|
|
33.81
|
|
|||
Construction
|
1,353
|
|
|
3.96
|
|
|
1,364
|
|
|
5.18
|
|
|
1,056
|
|
|
4.67
|
|
|||
Commercial business loans
|
3,206
|
|
|
10.69
|
|
|
2,839
|
|
|
11.87
|
|
|
3,410
|
|
|
13.24
|
|
|||
Consumer loans
|
434
|
|
|
1.52
|
|
|
772
|
|
|
2.48
|
|
|
736
|
|
|
2.77
|
|
|||
Total allocated allowance
|
$
|
18,750
|
|
|
100.00
|
%
|
|
$
|
16,674
|
|
|
100.00
|
%
|
|
$
|
12,315
|
|
|
100.00
|
%
|
Unallocated
|
—
|
|
|
|
|
428
|
|
|
|
|
658
|
|
|
|
||||||
Total
|
$
|
18,750
|
|
|
|
|
$
|
17,102
|
|
|
|
|
$
|
12,973
|
|
|
|
|
At December 31,
|
||||||||||||
|
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
|
||||||
|
(Dollars in thousands)
|
||||||||||||
Real Estate:
|
|
|
|
|
|
|
|
||||||
1-4 family residential
|
$
|
2,835
|
|
|
47.31
|
%
|
|
$
|
2,725
|
|
|
63.27
|
%
|
Home equity
|
247
|
|
|
3.30
|
|
|
316
|
|
|
5.09
|
|
||
Commercial
|
2,608
|
|
|
29.59
|
|
|
1,343
|
|
|
20.48
|
|
||
Construction
|
303
|
|
|
2.14
|
|
|
106
|
|
|
1.17
|
|
||
Commercial business loans
|
2,416
|
|
|
14.38
|
|
|
565
|
|
|
6.85
|
|
||
Consumer loans
|
574
|
|
|
3.28
|
|
|
313
|
|
|
3.14
|
|
||
Total allocated allowance
|
$
|
8,983
|
|
|
100.00
|
%
|
|
$
|
5,368
|
|
|
100.00
|
%
|
Unallocated
|
688
|
|
|
|
|
182
|
|
|
|
||||
Total
|
$
|
9,671
|
|
|
|
|
$
|
5,550
|
|
|
|
•
|
Fixed Income pool
- Management of the fixed income pool 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 as well as to provide adequate short-term liquidity to meet any cash flow demands. Permissible investments in this pool include U.S. Government Agency and Government-Sponsored Enterprise debt and mortgage-backed securities and certain money market instruments.
|
▪
|
The externally managed portion of the pool 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 oversight by Management. Sales of securities are restricted to securities with an unrealized gain position unless approved in advance by Management.
|
•
|
Equity pool
- The primary objective of this pool is to maximize income and total return via dividends and 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,
2016
, the Bank had investments in two different global asset allocation mutual funds.
|
|
At December 31,
|
||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||||||||||||||
|
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
|
|
Government-sponsored enterprises
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26,335
|
|
|
26,437
|
|
||||||
Government-sponsored mortgage-backed and collateralized mortgage obligations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
160,091
|
|
|
160,553
|
|
||||||
Mortgage and other asset-backed securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Privately issued commercial mortgage-backed securities
|
10,530
|
|
|
10,489
|
|
|
13,126
|
|
|
12,931
|
|
|
22,100
|
|
|
21,929
|
|
||||||
SBA asset-backed securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,765
|
|
|
28,046
|
|
||||||
Other asset-backed securities
|
9,174
|
|
|
8,985
|
|
|
11,395
|
|
|
11,253
|
|
|
16,235
|
|
|
16,192
|
|
||||||
Total mortgage and other asset-backed
|
19,704
|
|
|
19,474
|
|
|
24,521
|
|
|
24,184
|
|
|
66,100
|
|
|
66,167
|
|
||||||
Other bonds and obligations:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
State and political
|
12,730
|
|
|
12,693
|
|
|
16,016
|
|
|
16,315
|
|
|
15,619
|
|
|
16,183
|
|
||||||
Financial services:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Banks
|
20,263
|
|
|
20,022
|
|
|
18,813
|
|
|
18,861
|
|
|
12,364
|
|
|
12,889
|
|
||||||
Diversified financial entities
|
17,198
|
|
|
17,190
|
|
|
23,124
|
|
|
23,300
|
|
|
15,796
|
|
|
16,132
|
|
||||||
Insurance and REITs
|
18,304
|
|
|
18,238
|
|
|
16,883
|
|
|
16,602
|
|
|
9,387
|
|
|
9,516
|
|
||||||
Total financial services
|
55,765
|
|
|
55,450
|
|
|
58,820
|
|
|
58,763
|
|
|
37,547
|
|
|
38,537
|
|
||||||
Other corporate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Industrials
|
49,217
|
|
|
48,964
|
|
|
55,470
|
|
|
54,532
|
|
|
34,408
|
|
|
35,035
|
|
||||||
Utilities
|
24,895
|
|
|
25,087
|
|
|
31,952
|
|
|
30,320
|
|
|
16,873
|
|
|
17,018
|
|
||||||
Total other corporate
|
74,112
|
|
|
74,051
|
|
|
87,422
|
|
|
84,852
|
|
|
51,281
|
|
|
52,053
|
|
||||||
Total debt securities
|
162,311
|
|
|
161,668
|
|
|
186,779
|
|
|
184,114
|
|
|
370,010
|
|
|
373,149
|
|
||||||
Marketable equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mutual funds:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Global equity
|
—
|
|
|
—
|
|
|
5,000
|
|
|
5,388
|
|
|
5,000
|
|
|
5,623
|
|
||||||
Domestic community
|
3,216
|
|
|
3,222
|
|
|
3,216
|
|
|
3,273
|
|
|
3,216
|
|
|
3,297
|
|
||||||
Global asset allocation
|
42,396
|
|
|
39,946
|
|
|
42,396
|
|
|
38,915
|
|
|
32,956
|
|
|
34,378
|
|
||||||
Total marketable equity securities
|
45,612
|
|
|
43,168
|
|
|
50,612
|
|
|
47,576
|
|
|
41,172
|
|
|
43,298
|
|
||||||
Total securities available for sale
|
$
|
207,923
|
|
|
$
|
204,836
|
|
|
$
|
237,391
|
|
|
$
|
231,690
|
|
|
$
|
411,182
|
|
|
$
|
416,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Treasury
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
636
|
|
|
$
|
634
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Government-sponsored enterprises
|
32,667
|
|
|
31,737
|
|
|
28,256
|
|
|
28,224
|
|
|
—
|
|
|
—
|
|
||||||
Government-sponsored mortgage-backed and collateralized mortgage obligations
|
153,938
|
|
|
152,146
|
|
|
155,232
|
|
|
154,410
|
|
|
—
|
|
|
—
|
|
||||||
SBA asset-backed securities
|
14,422
|
|
|
14,210
|
|
|
16,017
|
|
|
15,958
|
|
|
—
|
|
|
—
|
|
||||||
Total securities held to maturity
|
$
|
201,027
|
|
|
$
|
198,093
|
|
|
$
|
200,141
|
|
|
$
|
199,226
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Mortgage- and other asset-backed securities
|
$
|
—
|
|
|
—
|
%
|
|
$
|
3,682
|
|
|
1.82
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
16,022
|
|
|
2.09
|
%
|
|
$
|
19,704
|
|
|
$
|
19,474
|
|
|
2.04
|
%
|
Other bonds and obligations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
State and political subdivisions
|
—
|
|
|
—
|
|
|
8,194
|
|
|
2.76
|
|
|
4,402
|
|
|
3.47
|
|
|
134
|
|
|
4.64
|
|
|
12,730
|
|
|
12,693
|
|
|
3.03
|
|
||||||
Financial services
|
1,920
|
|
|
1.64
|
|
|
18,938
|
|
|
2.69
|
|
|
33,839
|
|
|
3.12
|
|
|
1,068
|
|
|
3.64
|
|
|
55,765
|
|
|
55,450
|
|
|
2.93
|
|
||||||
Other corporate
|
1,102
|
|
|
3.64
|
|
|
29,541
|
|
|
2.57
|
|
|
37,195
|
|
|
3.43
|
|
|
6,274
|
|
|
4.36
|
|
|
74,112
|
|
|
74,051
|
|
|
3.13
|
|
||||||
Total debt securities available for sale
|
$
|
3,022
|
|
|
|
|
|
$
|
60,355
|
|
|
|
|
|
$
|
75,436
|
|
|
|
|
|
$
|
23,498
|
|
|
|
|
|
$
|
162,311
|
|
|
$
|
161,668
|
|
|
2.92
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Government-sponsored enterprises
|
$
|
5,006
|
|
|
0.92
|
%
|
|
$
|
9,687
|
|
|
1.46
|
%
|
|
$
|
17,974
|
|
|
1.92
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
32,667
|
|
|
$
|
31,737
|
|
|
1.63
|
%
|
Government-sponsored mortgage-backed and collateralized mortgage obligations
|
—
|
|
|
—
|
|
|
37
|
|
|
2.86
|
|
|
25,723
|
|
|
2.01
|
|
|
128,178
|
|
|
2.14
|
|
|
153,938
|
|
|
152,146
|
|
|
2.12
|
|
||||||
SBA asset-backed securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,081
|
|
|
1.42
|
|
|
10,341
|
|
|
1.96
|
|
|
14,422
|
|
|
14,210
|
|
|
1.81
|
|
||||||
Total debt securities held to maturity
|
$
|
5,006
|
|
|
|
|
|
$
|
9,724
|
|
|
|
|
|
$
|
47,778
|
|
|
|
|
|
$
|
138,519
|
|
|
|
|
|
$
|
201,027
|
|
|
$
|
198,093
|
|
|
2.02
|
%
|
|
At December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In thousands)
|
||||||||||
Interest rate range:
|
|
|
|
|
|
||||||
Less than 0.50%
|
$
|
76,658
|
|
|
$
|
123,629
|
|
|
$
|
101,162
|
|
0.50% to 0.99%
|
252,662
|
|
|
122,370
|
|
|
105,214
|
|
|||
1.00% to 1.49%
|
138,502
|
|
|
94,031
|
|
|
86,406
|
|
|||
1.50% to 1.99%
|
71,687
|
|
|
45,285
|
|
|
14,829
|
|
|||
2.00% to 2.99%
|
48,125
|
|
|
63,190
|
|
|
52,849
|
|
|||
Total
|
$
|
587,634
|
|
|
$
|
448,505
|
|
|
$
|
360,460
|
|
|
At December 31, 2016
|
|||||||||||||||||||||
|
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%
|
$
|
76,497
|
|
|
$
|
70
|
|
|
$
|
91
|
|
|
$
|
—
|
|
|
$
|
76,658
|
|
|
13.04
|
%
|
0.50% to 0.99%
|
232,389
|
|
|
20,125
|
|
|
148
|
|
|
—
|
|
|
252,662
|
|
|
43.00
|
|
|||||
1.00% to 1.49%
|
54,093
|
|
|
53,353
|
|
|
30,351
|
|
|
705
|
|
|
138,502
|
|
|
23.57
|
|
|||||
1.50% to 1.99%
|
9,322
|
|
|
14,620
|
|
|
2,930
|
|
|
44,815
|
|
|
71,687
|
|
|
12.20
|
|
|||||
2.00% to 2.99%
|
160
|
|
|
52
|
|
|
35,408
|
|
|
12,505
|
|
|
48,125
|
|
|
8.19
|
|
|||||
Total
|
$
|
372,461
|
|
|
$
|
88,220
|
|
|
$
|
68,928
|
|
|
$
|
58,025
|
|
|
$
|
587,634
|
|
|
100.00
|
%
|
|
At December 31, 2016
|
||
|
(In thousands)
|
||
Maturing in:
|
|
||
Three months or less
|
$
|
5,341
|
|
Over three months through six months
|
10,450
|
|
|
Over six months through one year
|
8,586
|
|
|
Over one year to three years
|
38,409
|
|
|
Over three years
|
14,764
|
|
|
Total
|
$
|
77,550
|
|
|
At or For the Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In thousands)
|
||||||||||
Balance at end of year
|
$
|
251,000
|
|
|
$
|
260,000
|
|
|
$
|
75,000
|
|
Average balance during year
|
249,226
|
|
|
146,720
|
|
|
149,841
|
|
|||
Maximum outstanding at any month end
|
325,000
|
|
|
260,000
|
|
|
215,000
|
|
|||
Weighted average interest rate at end of year
|
0.97
|
%
|
|
0.76
|
%
|
|
1.25
|
%
|
|||
Average interest rate during year
|
0.84
|
%
|
|
0.83
|
%
|
|
0.94
|
%
|
•
|
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.
|
Name
|
Age
|
Positions Held
(1)
|
William M. Parent
|
55
|
President and Chief Executive Officer of Blue Hills Bank and Blue Hills Bancorp
|
James E. Kivlehan
|
56
|
Executive Vice President, Chief Financial Officer of Blue Hills Bank and Blue Hills Bancorp
|
Thomas E. O’Leary
(2)
|
64
|
Executive Vice President, Commercial Banking
|
Thomas R. Sommerfield
|
61
|
Senior Vice President, Chief Risk Officer
|
•
|
excessive upfront points and fees (those exceeding 3% of the total loan amount, less "bona fide discount points" for prime loans);
|
•
|
interest-only payments;
|
•
|
negative-amortization; and
|
•
|
terms longer than 30 years.
|
ITEM 2.
|
PROPERTIES
|
ITEM 3.
|
LEGAL PROCEEDINGS
|
ITEM 5.
|
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
|
2016
|
High
|
Low
|
Dividends Declared
|
||||||
Fourth quarter
|
$
|
19.00
|
|
$
|
14.51
|
|
$
|
0.03
|
|
Third quarter
|
15.09
|
|
13.78
|
|
0.03
|
|
|||
Second quarter
|
14.96
|
|
13.36
|
|
0.03
|
|
|||
First quarter
|
15.51
|
|
13.22
|
|
0.02
|
|
|||
2015
|
High
|
Low
|
Dividends Declared
|
||||||
Fourth quarter
|
$
|
16.58
|
|
$
|
13.65
|
|
$
|
0.02
|
|
Third quarter
|
15.06
|
|
13.52
|
|
0.02
|
|
|||
Second quarter
|
14.48
|
|
13.09
|
|
—
|
|
|||
First quarter
|
13.58
|
|
12.78
|
|
—
|
|
Equity Compensation Plan Information
|
|||||||
|
Number of Securities to Be Issued Upon Exercise of Outstanding Options, Warrants and Rights
|
Weighted-average Exercise Price of Outstanding Options, Warrants and Rights
(1)
|
Number of Securities Remaining Available for Future Issuance Under Share-based Compensation Plans (excluding securities reflected in first column)
|
||||
Equity compensation plans approved by security holders
|
2,486,120
|
|
$
|
14.06
|
|
683,164
|
|
Equity compensation plans not approved by security holders
|
—
|
|
$
|
—
|
|
—
|
|
Period
|
|
Total Number of Shares (or Units) Purchased
|
|
Average Price Paid Per Share (or Unit)
|
|
Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Number (or Appropriate Dollar Value) of Shares (Or Units) that May Yet be Purchased Under the Plans or Programs
|
|||||
|
|
|
|
|
|
|
|
|
|||||
October 1, 2016-October 31, 2016
|
|
168,400
|
|
|
$
|
14.71
|
|
|
168,400
|
|
|
1,271,887
|
|
November 1, 2016-November 30, 2016
|
|
22,100
|
|
|
$
|
15.50
|
|
|
22,100
|
|
|
1,249,787
|
|
December 1, 2016-December 31, 2016
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
1,249,787
|
|
|
|
190,500
|
|
|
$
|
14.80
|
|
|
190,500
|
|
|
1,249,787
|
|
Period Ending
|
||||||||||||
Index
|
7/22/2014
|
|
12/31/2014
|
|
6/30/2015
|
|
12/31/2015
|
|
6/30/2016
|
|
12/31/2016
|
|
Blue Hills Bancorp, Inc.
|
100.00
|
|
109.69
|
|
113.09
|
|
123.99
|
|
119.96
|
|
152.94
|
|
Russell 2000
|
100.00
|
|
104.85
|
|
109.84
|
|
100.22
|
|
102.44
|
|
121.58
|
|
SNL Thrift $1B-$5B
|
100.00
|
|
107.95
|
|
118.00
|
|
126.72
|
|
127.59
|
|
172.72
|
|
|
At December 31,
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
|
(In thousands)
|
||||||||||||||||||
Selected Financial Condition Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
2,469,692
|
|
|
$
|
2,114,343
|
|
|
$
|
1,728,148
|
|
|
$
|
1,314,287
|
|
|
$
|
1,228,636
|
|
Cash and cash equivalents
|
30,496
|
|
|
33,298
|
|
|
60,146
|
|
|
40,316
|
|
|
73,819
|
|
|||||
Securities
|
405,863
|
|
|
431,831
|
|
|
416,447
|
|
|
441,306
|
|
|
533,785
|
|
|||||
Loans receivable, net
|
1,912,871
|
|
|
1,523,275
|
|
|
1,132,914
|
|
|
764,582
|
|
|
488,207
|
|
|||||
Federal Home Loan Bank stock
|
13,352
|
|
|
13,567
|
|
|
11,702
|
|
|
10,766
|
|
|
9,669
|
|
|||||
Bank-owned life insurance
|
32,015
|
|
|
31,626
|
|
|
30,595
|
|
|
29,831
|
|
|
33,344
|
|
|||||
Deposits
|
1,808,687
|
|
|
1,433,849
|
|
|
1,212,716
|
|
|
915,223
|
|
|
817,877
|
|
|||||
Borrowings
|
251,000
|
|
|
260,000
|
|
|
75,000
|
|
|
215,000
|
|
|
154,424
|
|
|||||
Total equity
|
386,907
|
|
|
398,829
|
|
|
411,606
|
|
|
171,534
|
|
|
176,938
|
|
|
Years Ended December 31,
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
|
(Dollars in thousands, except per share data
|
||||||||||||||||||
Selected Operating Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and dividend income
|
$
|
69,538
|
|
|
$
|
58,301
|
|
|
$
|
49,275
|
|
|
$
|
33,092
|
|
|
$
|
31,816
|
|
Interest expense
|
12,576
|
|
|
8,744
|
|
|
6,898
|
|
|
7,971
|
|
|
8,372
|
|
|||||
Net interest and dividend income
|
56,962
|
|
|
49,557
|
|
|
42,377
|
|
|
25,121
|
|
|
23,444
|
|
|||||
Provision for loan losses
|
4,885
|
|
|
4,090
|
|
|
3,381
|
|
|
4,094
|
|
|
2,361
|
|
|||||
Net interest and dividend income, after provision for loan losses
|
52,077
|
|
|
45,467
|
|
|
38,996
|
|
|
21,027
|
|
|
21,083
|
|
|||||
Realized securities gains and impairment losses, net
|
1,280
|
|
|
1,968
|
|
|
2,515
|
|
|
4,999
|
|
|
11,931
|
|
|||||
Other noninterest income
|
10,847
|
|
|
6,711
|
|
|
7,092
|
|
|
8,012
|
|
|
4,235
|
|
|||||
Total noninterest income
|
12,127
|
|
|
8,679
|
|
|
9,607
|
|
|
13,011
|
|
|
16,166
|
|
|||||
Noninterest expenses
|
51,746
|
|
|
44,082
|
|
|
49,408
|
|
|
31,659
|
|
|
26,283
|
|
|||||
Income (loss) before income taxes
|
12,458
|
|
|
10,064
|
|
|
(805
|
)
|
|
2,379
|
|
|
10,966
|
|
|||||
Provision (benefit) for income taxes
|
3,805
|
|
|
2,837
|
|
|
(622
|
)
|
|
(284
|
)
|
|
3,112
|
|
|||||
Net income (loss)
|
$
|
8,653
|
|
|
$
|
7,227
|
|
|
$
|
(183
|
)
|
|
$
|
2,663
|
|
|
$
|
7,854
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
0.35
|
|
|
$
|
0.28
|
|
|
N/A
|
|
N/A
|
|
N/A
|
||||||
Diluted
|
$
|
0.35
|
|
|
$
|
0.28
|
|
|
N/A
|
|
N/A
|
|
N/A
|
||||||
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
24,420,405
|
|
|
26,064,947
|
|
|
N/A
|
|
N/A
|
|
N/A
|
||||||||
Diluted
|
24,540,929
|
|
|
26,069,589
|
|
|
N/A
|
|
N/A
|
|
N/A
|
|
At or For the Years Ended December 31,
|
||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||
Selected Financial Ratios and Other Data:
|
|
|
|
|
|
|
|
|
|
||||||||
Performance Ratios:
|
|
|
|
|
|
|
|
|
|
||||||||
Return on average assets (ratio of net income (loss)/ to average assets)
|
0.39
|
%
|
|
0.39
|
%
|
|
(0.01
|
)%
|
|
0.22
|
%
|
|
0.74
|
%
|
|||
Return on average equity (ratio of net income (loss) to average equity)
|
2.20
|
|
|
1.76
|
|
|
(0.07
|
)
|
|
1.52
|
|
|
4.57
|
|
|||
Dividend payout ratio (dividends declared/earnings per share)
|
31.43
|
|
|
14.29
|
|
|
N/A
|
|
N/A
|
|
N/A
|
||||||
Interest rate spread (1)
|
2.51
|
|
|
2.65
|
|
|
2.67
|
|
|
2.12
|
|
|
2.18
|
|
|||
Net interest margin (2)
|
2.68
|
|
|
2.83
|
|
|
2.81
|
|
|
2.24
|
|
|
2.33
|
|
|||
Efficiency ratio (3)
|
75.00
|
|
|
76.00
|
|
|
95.00
|
|
|
83.02
|
|
|
66.35
|
|
|||
Noninterest expense to average total assets
|
2.31
|
|
|
2.38
|
|
|
3.07
|
|
|
2.65
|
|
|
2.46
|
|
|||
Average interest-earning assets to average interest-bearing liabilities
|
129.17
|
|
|
137.29
|
|
|
129.81
|
|
|
117.24
|
|
|
117.88
|
|
|||
Average equity to average total assets
|
17.53
|
|
|
22.20
|
|
|
17.41
|
|
|
14.68
|
|
|
16.11
|
|
|||
Asset Quality Ratios:
|
|
|
|
|
|
|
|
|
|
||||||||
Non-performing assets to total assets
|
0.36
|
%
|
|
0.51
|
%
|
|
0.26
|
%
|
|
0.13
|
%
|
|
0.18
|
%
|
|||
Non-performing loans to total loans
|
0.47
|
|
|
0.70
|
|
|
0.39
|
|
|
0.23
|
|
|
0.45
|
|
|||
Allowance for loan losses to non-performing loans
|
209
|
|
|
159
|
|
|
290
|
|
|
555
|
|
|
251
|
|
|||
Allowance for loan losses to total loans
|
0.97
|
|
|
1.11
|
|
|
1.13
|
|
|
1.25
|
|
|
1.13
|
|
|||
Consolidated Capital Ratios:
|
|
|
|
|
|
|
|
|
|
||||||||
Total capital to risk-weighted assets
|
20.5
|
%
|
|
24.8
|
%
|
|
32.6
|
%
|
|
19.8
|
%
|
|
21.7
|
%
|
|||
Tier 1 capital to risk-weighted assets
|
19.5
|
|
|
23.8
|
|
|
31.5
|
|
|
18.5
|
|
|
20.8
|
|
|||
Common equity Tier 1 to risk-weighted assets
|
19.5
|
|
|
23.8
|
|
|
N/A
|
|
N/A
|
|
N/A
|
||||||
Tier 1 capital to average assets
|
16.0
|
|
|
19.6
|
|
|
23.3
|
|
|
13.2
|
|
|
14.4
|
|
|||
Book value per share
|
$
|
14.46
|
|
|
$
|
14.00
|
|
|
$
|
14.46
|
|
|
N/A
|
|
N/A
|
||
Tangible book value per share
|
$
|
14.06
|
|
|
$
|
13.58
|
|
|
$
|
13.99
|
|
|
N/A
|
|
N/A
|
||
Capital Ratios for the Bank:
|
|
|
|
|
|
|
|
|
|
||||||||
Total capital to risk-weighted assets
|
16.3
|
%
|
|
18.1
|
%
|
|
22.7
|
%
|
|
16.6
|
%
|
|
18.6
|
%
|
|||
Tier 1 capital to risk-weighted assets
|
15.3
|
|
|
17.1
|
|
|
21.6
|
|
|
15.3
|
|
|
17.7
|
|
|||
Common equity Tier 1 to risk-weighted assets
|
15.3
|
|
|
17.1
|
|
|
N/A
|
|
N/A
|
|
N/A
|
||||||
Tier 1 capital to average assets
|
12.5
|
|
|
14.0
|
|
|
15.9
|
|
|
11.1
|
|
|
12.2
|
|
|||
Other Data:
|
|
|
|
|
|
|
|
|
|
||||||||
Number of full service offices
|
12
|
|
|
11
|
|
|
10
|
|
|
6
|
|
|
6
|
|
|||
Number of full time equivalent employees
|
228
|
|
|
209
|
|
|
202
|
|
|
147
|
|
|
141
|
|
(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 fully taxable-equivalent (FTE) basis for the years ended December 31, 2016, 2015, 2014 and 2013. No tax equivalent adjustments were made for the year ended December 31, 2012.
|
(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
|
•
|
Loans grew 25% to
$1.9 billion
at December 31, 2016 from the end of 2015 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 Company continued to expand its mortgage banking capabilities, including opening new Massachusetts offices in Franklin, Cambridge, and Winchester during 2016. In addition, new offices will be opened in Concord and Hingham during the first quarter of 2017. Mortgage banking income grew to $2.5 million in 2016 from $282,000 in 2015 as mortgage originations totaled $539 million in 2016, approximately double the amount of originations in 2015. In 2016, 98% of mortgage originations were in-house compared to 87% in 2015.
|
•
|
Commercial loan originations (real estate and non-real estate combined) were $359 million in 2016, up $28 million, or 8%, from $331 million in 2015. The commercial banking business added an asset-based lending team during the year which contributed to the loan growth. In addition, during the fourth quarter the Company upgraded to a new cash management system for commercial customers and conversion of customers to the new platform should be completed in the first quarter of 2017.
|
•
|
The Company opened a new branch in the Seaport District of Boston in October, and by the end of 2016 the branch had taken in $30 million of deposits. The previous two branches opened by the Company also continued to have success in 2016. At the end of 2016, the Milton branch, which was opened in the fourth quarter of 2014, had $59 million in deposits, while the Westwood branch, which was opened in the fourth quarter of 2015, had $91 million in deposits. The Brookline branch closed in the first quarter of 2017 as the Company focuses its resources on growing market share and deepening customer relationships at its other locations. Overall, total deposits increased 26% during 2016 while customer deposits were up 18%.
|
•
|
A new Business Banking team was added to expand the Company's small business customer base, including capitalizing on the attractive location of the new Seaport branch.
|
•
|
The Government Banking division added to the growth in deposits during the course of the year, as municipal deposits more than doubled during 2016 to $104 million at December 31, 2016.
|
•
|
The Company grew its quarterly dividend from $0.02 per share in the first quarter, to $0.03 per share in the subsequent 2016 quarters, and $0.05 per share in the first quarter of 2017, an increase of 150%.
|
•
|
In late February 2016, the Company announced the completion of its first stock repurchase program and the adoption of a second program. The second program was completed in October and a third program began upon completion of the second program. As of December 31, 2016, a total of 2,637,640 shares have been repurchased under these programs at an average price of $14.20 per share for a total cost of $37.4 million.
|
•
|
In October, the Company relocated to a new headquarters building at 500 River Ridge in Norwood to accommodate the additional space needed due to the Company's expansion over the past few years.
|
•
|
The Company and its foundations made donations in excess of $1 million in each of the last three years to various non-profits reflecting the Company's active involvement in the communities it serves. Most of the donations were made through the Blue Hills Bank charitable foundations which support non-profits in the fields of education and the arts, health and human services, affordable housing, financial literacy, and community services.
|
|
For the Year Ended December 31, 2016
|
|||||||||
|
Average
Outstanding
Balance
|
|
Interest
|
|
Yield / Cost
|
|||||
|
(Dollars in thousands)
|
|||||||||
Interest-earning assets:
|
|
|
|
|
|
|||||
Total loans
|
$
|
1,688,878
|
|
|
$
|
59,174
|
|
|
3.50
|
%
|
Securities
|
415,220
|
|
|
10,068
|
|
|
2.42
|
|
||
Other interest earning assets
(1)
|
33,427
|
|
|
603
|
|
|
1.80
|
|
||
Total interest-earning assets
|
2,137,525
|
|
|
69,845
|
|
|
3.27
|
|
||
Non-interest-earning assets
|
102,868
|
|
|
|
|
|
||||
Total assets
|
$
|
2,240,393
|
|
|
|
|
|
|||
Interest-bearing liabilities:
|
|
|
|
|
|
|||||
NOW accounts
|
$
|
139,829
|
|
|
67
|
|
|
0.05
|
%
|
|
Regular savings accounts
|
275,347
|
|
|
938
|
|
|
0.34
|
|
||
Money market accounts
|
517,474
|
|
|
4,321
|
|
|
0.84
|
|
||
Certificates of deposit
|
472,985
|
|
|
5,162
|
|
|
1.09
|
|
||
Total interest-bearing deposits
|
1,405,635
|
|
|
10,488
|
|
|
0.75
|
|
||
Borrowings
|
249,226
|
|
|
2,088
|
|
|
0.84
|
|
||
Total interest-bearing liabilities
|
1,654,861
|
|
|
12,576
|
|
|
0.76
|
|
||
Non-interest-bearing deposits
|
163,403
|
|
|
|
|
|
||||
Other non-interest-bearing liabilities
|
29,459
|
|
|
|
|
|
||||
Total liabilities
|
1,847,723
|
|
|
|
|
|
||||
Equity
|
392,670
|
|
|
|
|
|
||||
Total liabilities and equity
|
$
|
2,240,393
|
|
|
|
|
|
|||
|
|
|
|
|
|
|||||
Net interest-earning assets
(2)
|
$
|
482,664
|
|
|
|
|
|
|||
|
|
|
|
|
|
|||||
Net interest and dividend income (FTE)
|
|
|
57,269
|
|
|
|
||||
Less: FTE adjustment
|
|
|
(307
|
)
|
|
|
||||
Net interest and dividend income (GAAP)
|
|
|
$
|
56,962
|
|
|
|
|||
|
|
|
|
|
|
|||||
Net interest rate spread (FTE)
(3)
|
|
|
|
|
2.51
|
%
|
||||
Net interest margin (FTE)
(4)
|
|
|
|
|
2.68
|
%
|
||||
Average interest-earning assets to interest-bearing liabilities
|
129.17
|
%
|
|
|
|
|
||||
Total cost of deposits
|
|
|
|
|
0.67
|
%
|
|
For the Years Ended December 31,
|
||||||||||||||||||||
|
2015
|
|
2014
|
||||||||||||||||||
|
Average
Outstanding
Balance
|
|
Interest
|
|
Yield/
Cost
|
|
Average
Outstanding
Balance
|
|
Interest
|
|
Yield/
Cost
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total loans
|
$
|
1,292,909
|
|
|
$
|
45,544
|
|
|
3.52
|
%
|
|
$
|
1,022,128
|
|
|
$
|
37,590
|
|
|
3.68
|
%
|
Securities
|
427,237
|
|
|
12,738
|
|
|
2.98
|
|
|
424,190
|
|
|
11,777
|
|
|
2.78
|
|
||||
Other interest earning assets
(1)
|
40,115
|
|
|
360
|
|
|
0.90
|
|
|
78,260
|
|
|
304
|
|
|
0.39
|
|
||||
Total interest-earning assets
|
1,760,261
|
|
|
58,642
|
|
|
3.33
|
|
|
1,524,578
|
|
|
49,671
|
|
|
3.26
|
|
||||
Non-interest-earning assets
|
92,634
|
|
|
|
|
|
|
87,137
|
|
|
|
|
|
||||||||
Total assets
|
$
|
1,852,895
|
|
|
|
|
|
|
$
|
1,611,715
|
|
|
|
|
|
||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NOW accounts
|
$
|
127,183
|
|
|
62
|
|
|
0.05
|
%
|
|
$
|
124,372
|
|
|
103
|
|
|
0.08
|
%
|
||
Regular savings accounts
|
294,004
|
|
|
1,144
|
|
|
0.39
|
|
|
335,631
|
|
|
1,372
|
|
|
0.41
|
|
||||
Money market accounts
|
335,791
|
|
|
2,314
|
|
|
0.69
|
|
|
210,110
|
|
|
1,199
|
|
|
0.57
|
|
||||
Certificates of deposit
|
378,494
|
|
|
4,007
|
|
|
1.06
|
|
|
354,529
|
|
|
3,076
|
|
|
0.87
|
|
||||
Total interest-bearing deposits
|
1,135,472
|
|
|
7,527
|
|
|
0.66
|
|
|
1,024,642
|
|
|
5,750
|
|
|
0.56
|
|
||||
Borrowings
|
146,720
|
|
|
1,217
|
|
|
0.83
|
|
|
149,841
|
|
|
1,148
|
|
|
0.77
|
|
||||
Total interest-bearing liabilities
|
1,282,192
|
|
|
8,744
|
|
|
0.68
|
|
|
1,174,483
|
|
|
6,898
|
|
|
0.59
|
|
||||
Non-interest-bearing deposits
|
138,438
|
|
|
|
|
|
|
112,260
|
|
|
|
|
|
||||||||
Other non-interest-bearing liabilities
|
20,993
|
|
|
|
|
|
|
44,354
|
|
|
|
|
|
||||||||
Total liabilities
|
1,441,623
|
|
|
|
|
|
|
1,331,097
|
|
|
|
|
|
||||||||
Equity
|
411,272
|
|
|
|
|
|
|
280,618
|
|
|
|
|
|
||||||||
Total liabilities and equity
|
$
|
1,852,895
|
|
|
|
|
|
|
$
|
1,611,715
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest-earning assets
(2)
|
$
|
478,069
|
|
|
|
|
|
|
$
|
350,095
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest and dividend income (FTE)
|
|
|
49,898
|
|
|
|
|
|
|
42,773
|
|
|
|
||||||||
Less FTE adjustment
|
|
|
(341
|
)
|
|
|
|
|
|
(396
|
)
|
|
|
||||||||
Net interest and dividend income (GAAP)
|
|
|
$
|
49,557
|
|
|
|
|
|
|
$
|
42,377
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest rate spread
(3)
|
|
|
|
|
2.65
|
%
|
|
|
|
|
|
2.67
|
%
|
||||||||
Net interest margin
(4)
|
|
|
|
|
2.83
|
%
|
|
|
|
|
|
2.81
|
%
|
||||||||
Average interest-earning assets to interest-bearing liabilities
|
137.29
|
%
|
|
|
|
|
|
129.81
|
%
|
|
|
|
|
||||||||
Total cost of deposits
|
|
|
|
|
0.59
|
%
|
|
|
|
|
|
0.51
|
%
|
(1)
|
Includes Federal Home Loan Bank stock and short-term investments.
|
(2)
|
Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
|
(3)
|
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.
|
(4)
|
Net interest margin represents net interest and dividend income as a percentage of average interest-earning assets.
|
|
Year Ended December 31,
2016 vs. 2015 |
||||||||||
|
Increase (Decrease)
Due to
|
|
Total
Increase
(Decrease)
|
||||||||
|
Volume
|
|
Rate
|
|
|||||||
Interest-earning assets:
|
(In thousands)
|
||||||||||
Loans
|
$
|
13,890
|
|
|
$
|
(260
|
)
|
|
$
|
13,630
|
|
Securities
|
(347
|
)
|
|
(2,323
|
)
|
|
(2,670
|
)
|
|||
Other
|
(52
|
)
|
|
295
|
|
|
243
|
|
|||
Total interest-earning assets
|
$
|
13,491
|
|
|
$
|
(2,288
|
)
|
|
$
|
11,203
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
||||||
NOW accounts
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
5
|
|
Savings
|
(68
|
)
|
|
(138
|
)
|
|
(206
|
)
|
|||
Money market
|
1,076
|
|
|
931
|
|
|
2,007
|
|
|||
Certificates of deposit
|
967
|
|
|
188
|
|
|
1,155
|
|
|||
Total interest-bearing deposits
|
1,980
|
|
|
981
|
|
|
2,961
|
|
|||
Borrowings
|
846
|
|
|
25
|
|
|
871
|
|
|||
Total interest-bearing liabilities
|
$
|
2,826
|
|
|
$
|
1,006
|
|
|
$
|
3,832
|
|
Change in net interest and dividend income
|
$
|
10,665
|
|
|
$
|
(3,294
|
)
|
|
$
|
7,371
|
|
|
Year Ended December 31,
2015 vs. 2014 |
||||||||||
|
Increase (Decrease)
Due to
|
|
Total
Increase
(Decrease)
|
||||||||
|
Volume
|
|
Rate
|
|
|||||||
Interest-earning assets:
|
(In thousands)
|
||||||||||
Loans
|
$
|
9,642
|
|
|
$
|
(1,688
|
)
|
|
$
|
7,954
|
|
Securities
|
82
|
|
|
879
|
|
|
961
|
|
|||
Other
|
(96
|
)
|
|
152
|
|
|
56
|
|
|||
Total interest-earning assets
|
$
|
9,628
|
|
|
$
|
(657
|
)
|
|
$
|
8,971
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
||||||
NOW accounts
|
$
|
2
|
|
|
$
|
(43
|
)
|
|
$
|
(41
|
)
|
Savings accounts
|
(164
|
)
|
|
(64
|
)
|
|
(228
|
)
|
|||
Money market
|
607
|
|
|
508
|
|
|
1,115
|
|
|||
Certificates of deposit
|
196
|
|
|
735
|
|
|
931
|
|
|||
Total interest-bearing deposits
|
641
|
|
|
1,136
|
|
|
1,777
|
|
|||
Borrowings
|
(23
|
)
|
|
92
|
|
|
69
|
|
|||
Total interest-bearing liabilities
|
$
|
618
|
|
|
$
|
1,228
|
|
|
$
|
1,846
|
|
Change in net interest and dividend income
|
$
|
9,010
|
|
|
$
|
(1,885
|
)
|
|
$
|
7,125
|
|
•
|
A pre-tax expense of $7.0 million 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 $1.3 million related to the Company's decision to freeze its defined benefit pension plan as of October 31, 2014.
|
•
|
A pre-tax expense of $950,000 related to the January 2014 Nantucket Bank acquisition.
|
•
|
A pre-tax expense of $869,000 related to the Company's mutual to stock conversion.
|
•
|
A pre-tax gain of $182,000 related to death benefits received on bank-owned life insurance.
|
Change in Interest
Rates (basis points) (1)
|
|
Change in Net Interest Income
Year One
(% Change From Year One Base)
|
-100
|
|
0.12%
|
+100
|
|
0.24%
|
+200
|
|
0.39%
|
(1)
|
The calculated change in net interest income assumes a gradual parallel shift across the yield curve over a one-year period.
|
|
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
|
$
|
161,000
|
|
|
$
|
45,000
|
|
|
$
|
45,000
|
|
|
$
|
—
|
|
|
$
|
251,000
|
|
Certificates of deposit
|
372,461
|
|
|
157,148
|
|
|
58,025
|
|
|
—
|
|
|
587,634
|
|
|||||
Operating leases
|
2,530
|
|
|
5,144
|
|
|
4,686
|
|
|
12,408
|
|
|
24,768
|
|
|||||
Music venue naming rights
|
454
|
|
|
980
|
|
|
1,084
|
|
|
1,200
|
|
|
3,718
|
|
|||||
Total contractual obligations
|
$
|
536,445
|
|
|
$
|
208,272
|
|
|
$
|
108,795
|
|
|
$
|
13,608
|
|
|
$
|
867,120
|
|
ITEM 8.
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
|
Page
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
(In thousands, except share data)
|
|
||||||
Assets
|
|
|
|
||||
Cash and due from banks
|
$
|
14,752
|
|
|
$
|
10,932
|
|
Short-term investments
|
15,744
|
|
|
22,366
|
|
||
Total cash and cash equivalents
|
30,496
|
|
|
33,298
|
|
||
Securities available for sale, at fair value
|
204,836
|
|
|
231,690
|
|
||
Securities held to maturity, at amortized cost
|
201,027
|
|
|
200,141
|
|
||
Federal Home Loan Bank stock, at cost
|
13,352
|
|
|
13,567
|
|
||
Loans held for sale
|
2,761
|
|
|
12,877
|
|
||
Loans, net of allowance for loan losses of $18,750 in 2016 and $17,102 in 2015
|
1,912,871
|
|
|
1,523,275
|
|
||
Premises and equipment, net
|
22,034
|
|
|
20,015
|
|
||
Accrued interest receivable
|
6,057
|
|
|
5,344
|
|
||
Goodwill
|
9,160
|
|
|
9,160
|
|
||
Core deposit intangible
|
1,400
|
|
|
2,625
|
|
||
Net deferred tax asset
|
10,146
|
|
|
10,665
|
|
||
Bank-owned life insurance
|
32,015
|
|
|
31,626
|
|
||
Other assets
|
23,537
|
|
|
20,060
|
|
||
|
$
|
2,469,692
|
|
|
$
|
2,114,343
|
|
Liabilities and Stockholders' Equity
|
|
|
|
||||
Deposits:
|
|
|
|
||||
Non-interest bearing
|
$
|
184,982
|
|
|
$
|
153,155
|
|
Interest bearing
|
1,623,705
|
|
|
1,280,694
|
|
||
Total deposits
|
1,808,687
|
|
|
1,433,849
|
|
||
Short-term borrowings
|
146,000
|
|
|
205,000
|
|
||
Long-term debt
|
105,000
|
|
|
55,000
|
|
||
Accrued expenses and other liabilities
|
23,098
|
|
|
21,665
|
|
||
Total liabilities
|
2,082,785
|
|
|
1,715,514
|
|
||
Commitments and contingencies (Notes 4 and 13)
|
|
|
|
||||
Stockholders' Equity:
|
|
|
|
||||
Preferred stock, zero par value, (50,000,000 shares authorized; none issued and outstanding)
|
—
|
|
|
—
|
|
||
Common stock, $0.01 par value; 100,000,000 shares authorized, 26,759,953 and 28,492,732 issued and outstanding at December 31, 2016 and 2015, respectively
|
259
|
|
|
276
|
|
||
Additional paid-in capital
|
249,317
|
|
|
269,078
|
|
||
Unearned compensation- ESOP
|
(20,496
|
)
|
|
(21,255
|
)
|
||
Retained earnings
|
161,896
|
|
|
155,918
|
|
||
Accumulated other comprehensive loss
|
(4,069
|
)
|
|
(5,188
|
)
|
||
Total stockholders' equity
|
386,907
|
|
|
398,829
|
|
||
|
$
|
2,469,692
|
|
|
$
|
2,114,343
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
(Dollars in thousands, except per share data)
|
||||||||||
Interest and dividend income:
|
|
|
|
|
|
||||||
Interest and fees on loans
|
$
|
58,953
|
|
|
$
|
45,342
|
|
|
$
|
37,382
|
|
Interest on securities
|
8,895
|
|
|
8,828
|
|
|
7,859
|
|
|||
Dividends
|
1,596
|
|
|
4,068
|
|
|
3,894
|
|
|||
Other
|
94
|
|
|
63
|
|
|
140
|
|
|||
Total interest and dividend income
|
69,538
|
|
|
58,301
|
|
|
49,275
|
|
|||
Interest expense:
|
|
|
|
|
|
||||||
Interest on deposits
|
10,488
|
|
|
7,527
|
|
|
5,750
|
|
|||
Interest on borrowings
|
2,088
|
|
|
1,217
|
|
|
1,148
|
|
|||
Total interest expense
|
12,576
|
|
|
8,744
|
|
|
6,898
|
|
|||
Net interest and dividend income
|
56,962
|
|
|
49,557
|
|
|
42,377
|
|
|||
Provision for loan losses
|
4,885
|
|
|
4,090
|
|
|
3,381
|
|
|||
Net interest and dividend income, after provision for loan losses
|
52,077
|
|
|
45,467
|
|
|
38,996
|
|
|||
Noninterest income:
|
|
|
|
|
|
||||||
Net impairment losses recognized in earnings
|
—
|
|
|
—
|
|
|
(307
|
)
|
|||
Deposit account fees
|
1,327
|
|
|
1,314
|
|
|
1,313
|
|
|||
Interchange and ATM fees
|
1,546
|
|
|
1,511
|
|
|
1,397
|
|
|||
Mortgage banking
|
2,473
|
|
|
282
|
|
|
784
|
|
|||
Loan level derivative fee income
|
2,371
|
|
|
2,120
|
|
|
660
|
|
|||
Gains on sales and calls of securities, net
|
1,280
|
|
|
1,968
|
|
|
2,822
|
|
|||
Gains on trading assets, net
|
—
|
|
|
—
|
|
|
25
|
|
|||
Bank-owned life insurance income
|
1,048
|
|
|
1,031
|
|
|
1,006
|
|
|||
Bank-owned life insurance death benefit gains
|
506
|
|
|
—
|
|
|
182
|
|
|||
Pension curtailment gain
|
—
|
|
|
—
|
|
|
1,304
|
|
|||
Miscellaneous
|
1,576
|
|
|
453
|
|
|
421
|
|
|||
Total noninterest income
|
12,127
|
|
|
8,679
|
|
|
9,607
|
|
|||
Noninterest expense:
|
|
|
|
|
|
||||||
Salaries and employee benefits
|
28,853
|
|
|
22,570
|
|
|
21,308
|
|
|||
Occupancy and equipment
|
7,370
|
|
|
6,267
|
|
|
5,305
|
|
|||
Data processing
|
3,460
|
|
|
3,510
|
|
|
2,989
|
|
|||
Professional fees
|
2,638
|
|
|
2,689
|
|
|
3,551
|
|
|||
Advertising
|
2,423
|
|
|
2,458
|
|
|
2,427
|
|
|||
FDIC deposit insurance
|
1,125
|
|
|
999
|
|
|
1,266
|
|
|||
Directors’ fees
|
1,458
|
|
|
644
|
|
|
486
|
|
|||
Amortization of core deposit intangible
|
1,225
|
|
|
1,607
|
|
|
1,808
|
|
|||
Charitable foundation contribution
|
—
|
|
|
—
|
|
|
7,000
|
|
|||
Other general and administrative
|
3,194
|
|
|
3,338
|
|
|
3,268
|
|
|||
Total noninterest expense
|
51,746
|
|
|
44,082
|
|
|
49,408
|
|
|||
Income (loss) before income taxes
|
12,458
|
|
|
10,064
|
|
|
(805
|
)
|
|||
Provision (benefit) for income taxes
|
3,805
|
|
|
2,837
|
|
|
(622
|
)
|
|||
Net income (loss)
|
$
|
8,653
|
|
|
$
|
7,227
|
|
|
$
|
(183
|
)
|
Earnings per common share:
|
|
|
|
|
|
||||||
Basic
|
$
|
0.35
|
|
|
$
|
0.28
|
|
|
N/A
|
||
Diluted
|
$
|
0.35
|
|
|
$
|
0.28
|
|
|
N/A
|
||
Weighted average shares outstanding:
|
|
|
|
|
|
||||||
Basic
|
24,420,405
|
|
|
26,064,947
|
|
|
N/A
|
||||
Diluted
|
24,540,929
|
|
|
26,069,589
|
|
|
N/A
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In thousands)
|
||||||||||
Net income (loss)
|
$
|
8,653
|
|
|
$
|
7,227
|
|
|
$
|
(183
|
)
|
Other comprehensive income (loss):
|
|
|
|
|
|
||||||
Securities available for sale:
|
|
|
|
|
|
||||||
Change in unrealized holding gains (losses)
|
3,849
|
|
|
(8,332
|
)
|
|
4,942
|
|
|||
Reclassification adjustment for net gains realized in net income (1)
|
(1,235
|
)
|
|
(1,968
|
)
|
|
(2,515
|
)
|
|||
Reclassification of unrealized gains on securities transferred to held to maturity
|
—
|
|
|
(666
|
)
|
|
—
|
|
|||
Net unrealized gains (losses)
|
2,614
|
|
|
(10,966
|
)
|
|
2,427
|
|
|||
Tax effect
|
(938
|
)
|
|
3,818
|
|
|
(1,018
|
)
|
|||
Net-of-tax amount
|
1,676
|
|
|
(7,148
|
)
|
|
1,409
|
|
|||
Securities held to maturity:
|
|
|
|
|
|
||||||
Reclassification of unrealized gains on securities transferred from available-for-sale
|
—
|
|
|
666
|
|
|
—
|
|
|||
Amortization of amounts previously recorded upon transfer from available-for-sale (2)
|
(234
|
)
|
|
(95
|
)
|
|
—
|
|
|||
Net change in unrealized gains
|
(234
|
)
|
|
571
|
|
|
—
|
|
|||
Tax effect
|
83
|
|
|
(197
|
)
|
|
—
|
|
|||
Net-of-tax amount
|
(151
|
)
|
|
374
|
|
|
—
|
|
|||
Defined benefit pension plan:
|
|
|
|
|
|
||||||
Losses arising during the period
|
(895
|
)
|
|
(1,610
|
)
|
|
(2,090
|
)
|
|||
Reclassification adjustment for losses (gains) recognized in net periodic benefit cost (3)
|
271
|
|
|
110
|
|
|
(70
|
)
|
|||
Net losses
|
(624
|
)
|
|
(1,500
|
)
|
|
(2,160
|
)
|
|||
Tax effect
|
218
|
|
|
509
|
|
|
863
|
|
|||
Net-of-tax amount
|
(406
|
)
|
|
(991
|
)
|
|
(1,297
|
)
|
|||
Other comprehensive income (loss)
|
1,119
|
|
|
(7,765
|
)
|
|
112
|
|
|||
Comprehensive income (loss)
|
$
|
9,772
|
|
|
$
|
(538
|
)
|
|
$
|
(71
|
)
|
(1)
|
Amounts are included in gains on sales and calls of securities, net and net impairment losses, in noninterest income in the consolidated statements of operations. Income tax expense associated with the reclassification adjustment for the years ended December 31,
2016
,
2015
and
2014
was approximately
$431,000
,
$691,000
and
$940,000
, respectively. For the year ended December 31, 2016, included in net g
ains on sales and calls of securities, amounting to
$1.3 million
, in
net income, was
$45,000
related to a gain on a called security classified as held to maturity.
|
(2)
|
Amounts are included in interest income on securities in the consolidated statements of operations. Income tax expense associated with the amortization amount for the years ended December 31,
2016
and 2015 was
$83,000
and
$35,000
, respectively.
|
(3)
|
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,
2016
,
2015
and
2014
was
$(97,000)
,
$(37,000)
and
$24,000
, respectively.
|
|
SBLF Preferred
Stock
|
Common Stock
|
Additional paid-in capital
|
Unearned Compensation- ESOP
|
Retained
Earnings
|
Accumulated Other Comprehensive Income (Loss)
|
Total
|
||||||||||||||||
Shares
|
Amount
|
||||||||||||||||||||||
(In thousands, except share data)
|
|
||||||||||||||||||||||
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 declared
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(439
|
)
|
—
|
|
(439
|
)
|
|||||||
Balance at December 31, 2014
|
—
|
|
28,466,813
|
|
285
|
|
281,035
|
|
(22,014
|
)
|
149,723
|
|
2,577
|
|
411,606
|
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||
Comprehensive income (loss)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
7,227
|
|
(7,765
|
)
|
(538
|
)
|
|||||||
ESOP shares committed to be released
|
—
|
|
—
|
|
—
|
|
304
|
|
759
|
|
—
|
|
—
|
|
1,063
|
|
|||||||
Common stock dividends declared ($0.04 per share)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,032
|
)
|
—
|
|
(1,032
|
)
|
|||||||
Repurchase of common stock
|
—
|
|
(929,300
|
)
|
(10
|
)
|
(13,111
|
)
|
—
|
|
—
|
|
—
|
|
(13,121
|
)
|
|||||||
Share redemption for tax withholdings on deferred compensation obligation
|
—
|
|
(27,956
|
)
|
—
|
|
(439
|
)
|
—
|
|
—
|
|
—
|
|
(439
|
)
|
|||||||
Restricted stock awards granted
|
—
|
|
983,175
|
|
1
|
|
(1
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Stock based compensation expenses
|
—
|
|
—
|
|
—
|
|
1,124
|
|
—
|
|
—
|
|
—
|
|
1,124
|
|
|||||||
Tax benefit from deferred compensation
|
—
|
|
—
|
|
—
|
|
166
|
|
—
|
|
—
|
|
—
|
|
166
|
|
|||||||
Balance at December 31, 2015
|
—
|
|
28,492,732
|
|
276
|
|
269,078
|
|
(21,255
|
)
|
155,918
|
|
(5,188
|
)
|
398,829
|
|
|||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||
Comprehensive income
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
8,653
|
|
1,119
|
|
9,772
|
|
|||||||
ESOP shares committed to be released
|
—
|
|
—
|
|
—
|
|
371
|
|
759
|
|
—
|
|
—
|
|
1,130
|
|
|||||||
Common stock dividends declared ($0.11 per share)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(2,675
|
)
|
—
|
|
(2,675
|
)
|
|||||||
Repurchase of common stock
|
—
|
|
(1,708,340
|
)
|
(17
|
)
|
(24,415
|
)
|
—
|
|
—
|
|
—
|
|
(24,432
|
)
|
|||||||
Restricted stock awards granted
|
—
|
|
31,450
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Restricted stock awards forfeited
|
—
|
|
(11,800
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||
Stock based compensation expenses
|
—
|
|
—
|
|
—
|
|
4,868
|
|
—
|
|
—
|
|
—
|
|
4,868
|
|
|||||||
Share redemption for tax withholdings for restricted stock vesting
|
—
|
|
(46,969
|
)
|
—
|
|
(730
|
)
|
—
|
|
—
|
|
—
|
|
(730
|
)
|
|||||||
Proceeds from exercise of options
|
—
|
|
2,880
|
|
—
|
|
40
|
|
—
|
|
—
|
|
—
|
|
40
|
|
|||||||
Excess tax benefit from deferred and stock based compensation
|
—
|
|
—
|
|
—
|
|
105
|
|
—
|
|
—
|
|
—
|
|
105
|
|
|||||||
Balance at December 31, 2016
|
$
|
—
|
|
26,759,953
|
|
$
|
259
|
|
$
|
249,317
|
|
$
|
(20,496
|
)
|
$
|
161,896
|
|
$
|
(4,069
|
)
|
$
|
386,907
|
|
|
|||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In thousands)
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income (loss)
|
$
|
8,653
|
|
|
$
|
7,227
|
|
|
$
|
(183
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Provision for loan losses
|
4,885
|
|
|
4,090
|
|
|
3,381
|
|
|||
Net amortization of securities
|
2,924
|
|
|
3,710
|
|
|
2,184
|
|
|||
Gains on sales and calls of securities, net
|
(1,280
|
)
|
|
(1,968
|
)
|
|
(2,822
|
)
|
|||
Impairment losses on securities
|
—
|
|
|
—
|
|
|
307
|
|
|||
Net change in loans held for sale
|
(1,106
|
)
|
|
(374
|
)
|
|
765
|
|
|||
Loss (gains) on sales of portfolio loans, net
|
(319
|
)
|
|
44
|
|
|
(440
|
)
|
|||
Net amortization of deferred loan origination costs and discounts
|
(374
|
)
|
|
100
|
|
|
(336
|
)
|
|||
Depreciation and amortization of premises and equipment
|
2,011
|
|
|
1,824
|
|
|
1,475
|
|
|||
Issuance of common stock to charitable foundation
|
—
|
|
|
—
|
|
|
6,943
|
|
|||
Amortization of core deposit intangible
|
1,225
|
|
|
1,607
|
|
|
1,808
|
|
|||
Bank-owned life insurance income, including death benefit gains
|
(1,554
|
)
|
|
(1,031
|
)
|
|
(1,188
|
)
|
|||
ESOP expense
|
1,130
|
|
|
1,063
|
|
|
993
|
|
|||
Pension curtailment gain
|
—
|
|
|
—
|
|
|
(1,304
|
)
|
|||
Deferred income tax benefit
|
(118
|
)
|
|
(302
|
)
|
|
(3,557
|
)
|
|||
Stock based compensation expense
|
4,868
|
|
|
1,124
|
|
|
—
|
|
|||
Excess tax benefit from deferred and stock based compensation
|
(105
|
)
|
|
(166
|
)
|
|
—
|
|
|||
Net change in:
|
|
|
|
|
|
||||||
Trading assets
|
—
|
|
|
—
|
|
|
750
|
|
|||
Accrued interest receivable
|
(713
|
)
|
|
(911
|
)
|
|
161
|
|
|||
Other assets
|
(3,477
|
)
|
|
(1,153
|
)
|
|
(7,033
|
)
|
|||
Accrued expenses and other liabilities
|
914
|
|
|
(8,495
|
)
|
|
14,220
|
|
|||
Net cash provided by operating activities
|
17,564
|
|
|
6,389
|
|
|
16,124
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Activity in securities available for sale:
|
|
|
|
|
|
||||||
Purchases
|
(76,512
|
)
|
|
(153,222
|
)
|
|
(367,511
|
)
|
|||
Sales
|
97,824
|
|
|
99,522
|
|
|
362,941
|
|
|||
Maturities/calls
|
4,133
|
|
|
5,632
|
|
|
9,615
|
|
|||
Principal paydowns
|
3,497
|
|
|
24,487
|
|
|
22,572
|
|
|||
Activity in securities held to maturity:
|
|
|
|
|
|
||||||
Purchases
|
(59,939
|
)
|
|
(23,361
|
)
|
|
—
|
|
|||
Maturities/calls
|
22,835
|
|
|
9,000
|
|
|
—
|
|
|||
Principal paydowns
|
34,866
|
|
|
10,421
|
|
|
—
|
|
|||
Loan originations and purchases, net of paydowns
|
(403,729
|
)
|
|
(400,115
|
)
|
|
(315,872
|
)
|
|||
Proceeds from portfolio loan sales
|
21,163
|
|
|
7,608
|
|
|
27,810
|
|
|||
Net purchases of premises and equipment
|
(4,030
|
)
|
|
(3,051
|
)
|
|
(2,023
|
)
|
|||
Purchases of FHLBB stock
|
(5,487
|
)
|
|
(3,296
|
)
|
|
(936
|
)
|
|||
Redemption of FHLBB stock
|
5,702
|
|
|
1,431
|
|
|
—
|
|
|||
Proceeds from bank-owned life insurance death benefits
|
1,165
|
|
|
—
|
|
|
424
|
|
|||
Cash provided by business combination, net of purchase price
|
—
|
|
|
—
|
|
|
151,587
|
|
|||
Net cash used in investing activities
|
(358,512
|
)
|
|
(424,944
|
)
|
|
(111,393
|
)
|
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In thousands)
|
||||||||||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Net change in deposits, excluding brokered
|
252,295
|
|
|
124,670
|
|
|
32,644
|
|
|||
Net change in brokered deposits
|
122,543
|
|
|
96,463
|
|
|
(9,752
|
)
|
|||
Net change in short-term borrowings
|
(59,000
|
)
|
|
165,000
|
|
|
(130,000
|
)
|
|||
Repayments of long-term debt
|
(20,000
|
)
|
|
—
|
|
|
(10,000
|
)
|
|||
Proceeds from long-term debt
|
70,000
|
|
|
20,000
|
|
|
—
|
|
|||
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
|
)
|
|||
Repurchase of common stock
|
(24,432
|
)
|
|
(13,121
|
)
|
|
—
|
|
|||
Share redemption for tax withholdings on deferred compensation obligation
|
—
|
|
|
(439
|
)
|
|
—
|
|
|||
Share redemption for tax withholdings for restricted stock vesting
|
(730
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from exercise of stock options
|
40
|
|
|
—
|
|
|
—
|
|
|||
Excess tax benefit from deferred and stock based compensation
|
105
|
|
|
166
|
|
|
—
|
|
|||
Common stock dividends paid
|
(2,675
|
)
|
|
(1,032
|
)
|
|
—
|
|
|||
Net cash provided by financing activities
|
338,146
|
|
|
391,707
|
|
|
115,099
|
|
|||
Net change in cash and cash equivalents
|
(2,802
|
)
|
|
(26,848
|
)
|
|
19,830
|
|
|||
Cash and cash equivalents at beginning of year
|
33,298
|
|
|
60,146
|
|
|
40,316
|
|
|||
Cash and cash equivalents at end of year
|
$
|
30,496
|
|
|
$
|
33,298
|
|
|
$
|
60,146
|
|
Supplementary information:
|
|
|
|
|
|
||||||
Interest paid
|
$
|
12,378
|
|
|
$
|
8,700
|
|
|
$
|
6,921
|
|
Income taxes paid, net of refunds
|
4,390
|
|
|
4,280
|
|
|
257
|
|
|||
Securities transferred from available-for-sale to held-to-maturity
|
—
|
|
|
196,958
|
|
|
—
|
|
|||
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
|
—
|
|
|
11,222
|
|
|
14,591
|
|
|
December 31, 2016
|
||||||||||||||
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
(In thousands)
|
||||||||||||||
Securities Available for Sale:
|
|
|
|
|
|
|
|
||||||||
Debt securities:
|
|
|
|
|
|
|
|
||||||||
Mortgage- and other asset-backed securities:
|
|
|
|
|
|
|
|
|
|||||||
Privately issued commercial mortgage-backed securities
|
$
|
10,530
|
|
|
$
|
—
|
|
|
$
|
(41
|
)
|
|
$
|
10,489
|
|
Other asset-backed securities
|
9,174
|
|
|
6
|
|
|
(195
|
)
|
|
8,985
|
|
||||
Total mortgage- and other asset-backed securities
|
19,704
|
|
|
6
|
|
|
(236
|
)
|
|
19,474
|
|
||||
State and political
|
12,730
|
|
|
120
|
|
|
(157
|
)
|
|
12,693
|
|
||||
Financial services:
|
|
|
|
|
|
|
|
|
|||||||
Banks
|
20,263
|
|
|
57
|
|
|
(298
|
)
|
|
20,022
|
|
||||
Diversified financial entities
|
17,198
|
|
|
190
|
|
|
(198
|
)
|
|
17,190
|
|
||||
Insurance and REITs
|
18,304
|
|
|
150
|
|
|
(216
|
)
|
|
18,238
|
|
||||
Total financial services
|
55,765
|
|
|
397
|
|
|
(712
|
)
|
|
55,450
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
||||||||
Industrials
|
49,217
|
|
|
508
|
|
|
(761
|
)
|
|
48,964
|
|
||||
Utilities
|
24,895
|
|
|
292
|
|
|
(100
|
)
|
|
25,087
|
|
||||
Total other corporate
|
74,112
|
|
|
800
|
|
|
(861
|
)
|
|
74,051
|
|
||||
Total debt securities
|
162,311
|
|
|
1,323
|
|
|
(1,966
|
)
|
|
161,668
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Marketable equity securities:
|
|
|
|
|
|
|
|
||||||||
Mutual funds:
|
|
|
|
|
|
|
|
||||||||
Domestic community
|
3,216
|
|
|
25
|
|
|
(19
|
)
|
|
3,222
|
|
||||
Global asset allocation
|
42,396
|
|
|
48
|
|
|
(2,498
|
)
|
|
39,946
|
|
||||
Total marketable equity securities
|
45,612
|
|
|
73
|
|
|
(2,517
|
)
|
|
43,168
|
|
||||
Total securities available for sale
|
$
|
207,923
|
|
|
$
|
1,396
|
|
|
$
|
(4,483
|
)
|
|
$
|
204,836
|
|
Securities Held to Maturity:
|
|
|
|
|
|
|
|
||||||||
Debt securities:
|
|
|
|
|
|
|
|
||||||||
Government-sponsored enterprises
|
$
|
32,667
|
|
|
$
|
4
|
|
|
$
|
(934
|
)
|
|
$
|
31,737
|
|
Government-sponsored mortgage-backed and collateralized mortgage obligations
|
153,938
|
|
|
14
|
|
|
(1,806
|
)
|
|
152,146
|
|
||||
SBA asset-backed securities
|
14,422
|
|
|
—
|
|
|
(212
|
)
|
|
14,210
|
|
||||
Total securities held to maturity
|
$
|
201,027
|
|
|
$
|
18
|
|
|
$
|
(2,952
|
)
|
|
$
|
198,093
|
|
|
December 31, 2015
|
||||||||||||||
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
(In thousands)
|
||||||||||||||
Securities Available for Sale:
|
|
|
|
|
|
|
|
||||||||
Debt securities:
|
|
|
|
|
|
|
|
||||||||
Mortgage- and other asset-backed securities:
|
|
|
|
|
|
|
|
||||||||
Privately issued commercial mortgage-backed securities
|
$
|
13,126
|
|
|
$
|
—
|
|
|
$
|
(195
|
)
|
|
$
|
12,931
|
|
Other asset-backed securities
|
11,395
|
|
|
—
|
|
|
(142
|
)
|
|
11,253
|
|
||||
Total mortgage- and other asset-backed securities
|
24,521
|
|
|
—
|
|
|
(337
|
)
|
|
24,184
|
|
||||
State and political
|
16,016
|
|
|
354
|
|
|
(55
|
)
|
|
16,315
|
|
||||
Financial services:
|
|
|
|
|
|
|
|
|
|||||||
Banks
|
18,813
|
|
|
138
|
|
|
(90
|
)
|
|
18,861
|
|
||||
Diversified financial entities
|
23,124
|
|
|
349
|
|
|
(173
|
)
|
|
23,300
|
|
||||
Insurance and REITs
|
16,883
|
|
|
1
|
|
|
(282
|
)
|
|
16,602
|
|
||||
Total financial services
|
58,820
|
|
|
488
|
|
|
(545
|
)
|
|
58,763
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
||||||||
Industrials
|
55,470
|
|
|
306
|
|
|
(1,244
|
)
|
|
54,532
|
|
||||
Utilities
|
31,952
|
|
|
7
|
|
|
(1,639
|
)
|
|
30,320
|
|
||||
Total other corporate
|
87,422
|
|
|
313
|
|
|
(2,883
|
)
|
|
84,852
|
|
||||
Total debt securities
|
186,779
|
|
|
1,155
|
|
|
(3,820
|
)
|
|
184,114
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Marketable equity securities:
|
|
|
|
|
|
|
|
||||||||
Mutual funds:
|
|
|
|
|
|
|
|
||||||||
Global equity
|
5,000
|
|
|
388
|
|
|
—
|
|
|
5,388
|
|
||||
Domestic community
|
3,216
|
|
|
70
|
|
|
(13
|
)
|
|
3,273
|
|
||||
Global asset allocation
|
42,396
|
|
|
3
|
|
|
(3,484
|
)
|
|
38,915
|
|
||||
Total marketable equity securities
|
50,612
|
|
|
461
|
|
|
(3,497
|
)
|
|
47,576
|
|
||||
Total securities available for sale
|
$
|
237,391
|
|
|
$
|
1,616
|
|
|
$
|
(7,317
|
)
|
|
$
|
231,690
|
|
|
|
|
|
|
|
|
|
||||||||
Securities Held to Maturity:
|
|
|
|
|
|
|
|
||||||||
Debt securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
636
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
|
$
|
634
|
|
Government-sponsored enterprises
|
28,256
|
|
|
94
|
|
|
(126
|
)
|
|
28,224
|
|
||||
Government-sponsored mortgage-backed and collateralized mortgage obligations
|
155,232
|
|
|
10
|
|
|
(832
|
)
|
|
154,410
|
|
||||
SBA asset-backed securities
|
16,017
|
|
|
—
|
|
|
(59
|
)
|
|
15,958
|
|
||||
Total securities held to maturity
|
$
|
200,141
|
|
|
$
|
104
|
|
|
$
|
(1,019
|
)
|
|
$
|
199,226
|
|
|
Available for Sale
|
|
Held to Maturity
|
||||||||||||
|
Amortized
Cost
|
|
Fair
Value
|
|
Amortized
Cost
|
|
Fair
Value
|
||||||||
|
(In thousands)
|
||||||||||||||
Within 1 year
|
$
|
3,021
|
|
|
$
|
3,022
|
|
|
$
|
5,006
|
|
|
$
|
5,007
|
|
After 1 year through 5 years
|
56,673
|
|
|
56,850
|
|
|
9,687
|
|
|
9,439
|
|
||||
After 5 years through 10 years
|
75,437
|
|
|
74,787
|
|
|
17,974
|
|
|
17,291
|
|
||||
After 10 years
|
7,476
|
|
|
7,535
|
|
|
—
|
|
|
—
|
|
||||
|
142,607
|
|
|
142,194
|
|
|
32,667
|
|
|
31,737
|
|
||||
Mortgage- and asset-backed securities and collateralized mortgage obligations amortizing monthly
|
19,704
|
|
|
19,474
|
|
|
168,360
|
|
|
166,356
|
|
||||
Total debt securities
|
$
|
162,311
|
|
|
$
|
161,668
|
|
|
$
|
201,027
|
|
|
$
|
198,093
|
|
|
December 31, 2016
|
||||||||||||||
|
Less Than Twelve Months
|
|
More Than Twelve Months
|
||||||||||||
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
(In thousands)
|
||||||||||||||
Securities Available for Sale:
|
|
|
|
|
|
|
|
||||||||
Debt securities:
|
|
|
|
|
|
|
|
||||||||
Mortgage- and other asset-backed securities:
|
|
|
|
|
|
|
|
||||||||
Privately issued commercial mortgage- backed securities
|
$
|
(11
|
)
|
|
$
|
3,163
|
|
|
$
|
(30
|
)
|
|
$
|
7,326
|
|
Other asset-backed securities
|
(43
|
)
|
|
3,924
|
|
|
(152
|
)
|
|
3,732
|
|
||||
Total mortgage- and other asset-backed securities
|
(54
|
)
|
|
7,087
|
|
|
(182
|
)
|
|
11,058
|
|
||||
State and political
|
(157
|
)
|
|
5,301
|
|
|
—
|
|
|
—
|
|
||||
Financial services:
|
|
|
|
|
|
|
|
||||||||
Banks
|
(298
|
)
|
|
14,553
|
|
|
—
|
|
|
—
|
|
||||
Diversified financial entities
|
(198
|
)
|
|
9,369
|
|
|
—
|
|
|
—
|
|
||||
Insurance and REITs
|
(216
|
)
|
|
6,900
|
|
|
—
|
|
|
—
|
|
||||
Total financial services
|
(712
|
)
|
|
30,822
|
|
|
—
|
|
|
—
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
||||||||
Industrials
|
(655
|
)
|
|
24,630
|
|
|
(106
|
)
|
|
2,284
|
|
||||
Utilities
|
(99
|
)
|
|
11,200
|
|
|
(1
|
)
|
|
794
|
|
||||
Total other corporate
|
(754
|
)
|
|
35,830
|
|
|
(107
|
)
|
|
3,078
|
|
||||
Total debt securities
|
(1,677
|
)
|
|
79,040
|
|
|
(289
|
)
|
|
14,136
|
|
||||
Marketable equity securities:
|
|
|
|
|
|
|
|
||||||||
Mutual funds:
|
|
|
|
|
|
|
|
||||||||
Domestic community
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
448
|
|
||||
Global asset allocation
|
(424
|
)
|
|
15,153
|
|
|
(2,074
|
)
|
|
22,442
|
|
||||
Total marketable equity securities
|
(424
|
)
|
|
15,153
|
|
|
(2,093
|
)
|
|
22,890
|
|
||||
Total temporarily impaired securities available for sale
|
$
|
(2,101
|
)
|
|
$
|
94,193
|
|
|
$
|
(2,382
|
)
|
|
$
|
37,026
|
|
Securities Held to Maturity:
|
|
|
|
|
|
|
|
||||||||
Debt securities:
|
|
|
|
|
|
|
|
||||||||
Government-sponsored enterprises
|
$
|
(934
|
)
|
|
$
|
28,533
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Government-sponsored mortgage-backed and collateralized mortgage obligations
|
(1,763
|
)
|
|
146,098
|
|
|
(43
|
)
|
|
3,827
|
|
||||
SBA asset-backed securities
|
(104
|
)
|
|
9,157
|
|
|
(108
|
)
|
|
5,053
|
|
||||
Total temporarily impaired securities held to maturity
|
$
|
(2,801
|
)
|
|
$
|
183,788
|
|
|
$
|
(151
|
)
|
|
$
|
8,880
|
|
|
December 31, 2015
|
||||||||||||||
|
Less Than Twelve Months
|
|
More Than Twelve Months
|
||||||||||||
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
(In thousands)
|
||||||||||||||
Securities Available for Sale:
|
|
|
|
|
|
|
|
||||||||
Debt securities:
|
|
|
|
|
|
|
|
||||||||
Mortgage- and other asset-backed securities:
|
|
|
|
|
|
|
|
||||||||
Privately issued commercial mortgage- backed securities
|
$
|
(84
|
)
|
|
$
|
5,166
|
|
|
$
|
(111
|
)
|
|
$
|
7,765
|
|
Other asset-backed securities
|
(142
|
)
|
|
11,253
|
|
|
—
|
|
|
—
|
|
||||
Total mortgage- and other asset-backed securities
|
(226
|
)
|
|
16,419
|
|
|
(111
|
)
|
|
7,765
|
|
||||
State and political
|
(55
|
)
|
|
3,324
|
|
|
—
|
|
|
—
|
|
||||
Financial services:
|
|
|
|
|
|
|
|
||||||||
Banks
|
(90
|
)
|
|
14,070
|
|
|
—
|
|
|
—
|
|
||||
Diversified financial entities
|
(173
|
)
|
|
15,397
|
|
|
—
|
|
|
—
|
|
||||
Insurance and REITs
|
(282
|
)
|
|
14,487
|
|
|
—
|
|
|
—
|
|
||||
Total financial services
|
(545
|
)
|
|
43,954
|
|
|
—
|
|
|
—
|
|
||||
Other corporate:
|
|
|
|
|
|
|
|
||||||||
Industrials
|
(957
|
)
|
|
43,848
|
|
|
(287
|
)
|
|
395
|
|
||||
Utilities
|
(1,387
|
)
|
|
25,353
|
|
|
(252
|
)
|
|
1,618
|
|
||||
Total other corporate
|
(2,344
|
)
|
|
69,201
|
|
|
(539
|
)
|
|
2,013
|
|
||||
Total debt securities
|
(3,170
|
)
|
|
132,898
|
|
|
(650
|
)
|
|
9,778
|
|
||||
Marketable equity securities:
|
|
|
|
|
|
|
|
||||||||
Mutual funds:
|
|
|
|
|
|
|
|
||||||||
Domestic community
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
453
|
|
||||
Global asset allocation
|
(3,484
|
)
|
|
36,609
|
|
|
—
|
|
|
—
|
|
||||
Total marketable equity securities
|
(3,484
|
)
|
|
36,609
|
|
|
(13
|
)
|
|
453
|
|
||||
Total temporarily impaired securities available for sale
|
$
|
(6,654
|
)
|
|
$
|
169,507
|
|
|
$
|
(663
|
)
|
|
$
|
10,231
|
|
|
|
|
|
|
|
|
|
||||||||
Securities Held to Maturity:
|
|
|
|
|
|
|
|
||||||||
Debt securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury
|
$
|
(2
|
)
|
|
$
|
634
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Government-sponsored enterprises
|
(126
|
)
|
|
14,084
|
|
|
—
|
|
|
—
|
|
||||
Government-sponsored mortgage-backed and collateralized mortgage obligations
|
(832
|
)
|
|
144,820
|
|
|
—
|
|
|
—
|
|
||||
SBA asset-backed securities
|
(59
|
)
|
|
15,958
|
|
|
—
|
|
|
—
|
|
||||
Total temporarily impaired securities held to maturity
|
$
|
(1,019
|
)
|
|
$
|
175,496
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Real estate:
|
|
|
|
||||
1-4 family residential
|
$
|
851,154
|
|
|
$
|
599,938
|
|
Home equity
|
78,719
|
|
|
77,399
|
|
||
Commercial real estate
|
687,289
|
|
|
561,203
|
|
||
Construction
|
76,351
|
|
|
79,773
|
|
||
|
1,693,513
|
|
|
1,318,313
|
|
||
Commercial business
|
206,234
|
|
|
182,677
|
|
||
Consumer
|
29,281
|
|
|
38,186
|
|
||
Total loans
|
1,929,028
|
|
|
1,539,176
|
|
||
Allowance for loan losses
|
(18,750
|
)
|
|
(17,102
|
)
|
||
Discount and fair value adjustments on purchased loans
|
(1,846
|
)
|
|
(1,959
|
)
|
||
Deferred loan costs and fees, net
|
4,439
|
|
|
3,160
|
|
||
Loans, net
|
$
|
1,912,871
|
|
|
$
|
1,523,275
|
|
|
1-4 Family
Residential
|
|
Home
Equity
|
|
Commercial
Real Estate
|
|
Construction
|
|
Commercial
Business
|
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance
|
$
|
3,916
|
|
|
$
|
636
|
|
|
$
|
7,147
|
|
|
$
|
1,364
|
|
|
$
|
2,839
|
|
|
$
|
772
|
|
|
$
|
428
|
|
|
$
|
17,102
|
|
Provision (credit) for loan losses
|
830
|
|
|
(99
|
)
|
|
1,447
|
|
|
(11
|
)
|
|
3,428
|
|
|
(282
|
)
|
|
(428
|
)
|
|
4,885
|
|
||||||||
Loans charged-off
|
—
|
|
|
—
|
|
|
(321
|
)
|
|
—
|
|
|
(3,098
|
)
|
|
(56
|
)
|
|
—
|
|
|
(3,475
|
)
|
||||||||
Recoveries
|
100
|
|
|
—
|
|
|
101
|
|
|
—
|
|
|
37
|
|
|
—
|
|
|
—
|
|
|
238
|
|
||||||||
Ending Balance
|
$
|
4,846
|
|
|
$
|
537
|
|
|
$
|
8,374
|
|
|
$
|
1,353
|
|
|
$
|
3,206
|
|
|
$
|
434
|
|
|
$
|
—
|
|
|
$
|
18,750
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Beginning balance
|
$
|
3,222
|
|
|
$
|
340
|
|
|
$
|
3,551
|
|
|
$
|
1,056
|
|
|
$
|
3,410
|
|
|
$
|
736
|
|
|
$
|
658
|
|
|
$
|
12,973
|
|
Provision (credit) for loan losses
|
612
|
|
|
296
|
|
|
3,596
|
|
|
308
|
|
|
(571
|
)
|
|
79
|
|
|
(230
|
)
|
|
4,090
|
|
||||||||
Loans charged-off
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(43
|
)
|
|
—
|
|
|
(43
|
)
|
||||||||
Recoveries
|
82
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
82
|
|
||||||||
Ending Balance
|
$
|
3,916
|
|
|
$
|
636
|
|
|
$
|
7,147
|
|
|
$
|
1,364
|
|
|
$
|
2,839
|
|
|
$
|
772
|
|
|
$
|
428
|
|
|
$
|
17,102
|
|
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
|
|
|
1-4 Family
Residential |
|
Home
Equity |
|
Commercial
Real Estate |
|
Construction
|
|
Commercial
Business |
|
Consumer
|
|
Unallocated
|
|
Total
|
||||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance related to impaired loans
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
17
|
|
Allowance related to non-impaired loans
|
4,829
|
|
|
537
|
|
|
8,374
|
|
|
1,353
|
|
|
3,206
|
|
|
434
|
|
|
—
|
|
|
18,733
|
|
||||||||
Total allowance for loan losses
|
$
|
4,846
|
|
|
$
|
537
|
|
|
$
|
8,374
|
|
|
$
|
1,353
|
|
|
$
|
3,206
|
|
|
$
|
434
|
|
|
$
|
—
|
|
|
$
|
18,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Impaired loans
|
$
|
6,726
|
|
|
$
|
1,153
|
|
|
$
|
941
|
|
|
$
|
—
|
|
|
$
|
241
|
|
|
$
|
170
|
|
|
$
|
—
|
|
|
$
|
9,231
|
|
Non-impaired loans
|
844,428
|
|
|
77,566
|
|
|
686,348
|
|
|
76,351
|
|
|
205,993
|
|
|
29,111
|
|
|
—
|
|
|
1,919,797
|
|
||||||||
Total loans
|
$
|
851,154
|
|
|
$
|
78,719
|
|
|
$
|
687,289
|
|
|
$
|
76,351
|
|
|
$
|
206,234
|
|
|
$
|
29,281
|
|
|
$
|
—
|
|
|
$
|
1,929,028
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance related to impaired loans
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
384
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
404
|
|
Allowance related to non-impaired loans
|
3,916
|
|
|
636
|
|
|
6,763
|
|
|
1,364
|
|
|
2,829
|
|
|
762
|
|
|
428
|
|
|
16,698
|
|
||||||||
Total allowance for loan losses
|
$
|
3,916
|
|
|
$
|
636
|
|
|
$
|
7,147
|
|
|
$
|
1,364
|
|
|
$
|
2,839
|
|
|
$
|
772
|
|
|
$
|
428
|
|
|
$
|
17,102
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Impaired loans
|
$
|
6,114
|
|
|
$
|
270
|
|
|
$
|
4,631
|
|
|
$
|
—
|
|
|
$
|
10
|
|
|
$
|
145
|
|
|
$
|
—
|
|
|
$
|
11,170
|
|
Non-impaired loans
|
593,824
|
|
|
77,129
|
|
|
556,572
|
|
|
79,773
|
|
|
182,667
|
|
|
38,041
|
|
|
—
|
|
|
1,528,006
|
|
||||||||
Total loans
|
$
|
599,938
|
|
|
$
|
77,399
|
|
|
$
|
561,203
|
|
|
$
|
79,773
|
|
|
$
|
182,677
|
|
|
$
|
38,186
|
|
|
$
|
—
|
|
|
$
|
1,539,176
|
|
|
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, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
1-4 family residential
|
$
|
584
|
|
|
$
|
373
|
|
|
$
|
2,322
|
|
|
$
|
3,279
|
|
|
$
|
6,478
|
|
Home equity
|
452
|
|
|
496
|
|
|
775
|
|
|
1,723
|
|
|
1,153
|
|
|||||
Commercial real estate
|
1,393
|
|
|
—
|
|
|
—
|
|
|
1,393
|
|
|
941
|
|
|||||
Commercial business
|
4,996
|
|
|
13
|
|
|
—
|
|
|
5,009
|
|
|
241
|
|
|||||
Consumer
|
175
|
|
|
5
|
|
|
7
|
|
|
187
|
|
|
170
|
|
|||||
Total
|
$
|
7,600
|
|
|
$
|
887
|
|
|
$
|
3,104
|
|
|
$
|
11,591
|
|
|
$
|
8,983
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
1-4 family residential
|
$
|
2,287
|
|
|
$
|
—
|
|
|
$
|
990
|
|
|
$
|
3,277
|
|
|
$
|
5,688
|
|
Home equity
|
1,031
|
|
|
19
|
|
|
176
|
|
|
1,226
|
|
|
270
|
|
|||||
Commercial real estate
|
—
|
|
|
1,249
|
|
|
—
|
|
|
1,249
|
|
|
4,631
|
|
|||||
Commercial business
|
23
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
10
|
|
|||||
Consumer
|
3
|
|
|
80
|
|
|
120
|
|
|
203
|
|
|
145
|
|
|||||
Total
|
$
|
3,344
|
|
|
$
|
1,348
|
|
|
$
|
1,286
|
|
|
$
|
5,978
|
|
|
$
|
10,744
|
|
|
Recorded
Investment
|
|
Unpaid
Principal
Balance
|
|
Related
Allowance
|
||||||
December 31, 2016
|
(In thousands)
|
||||||||||
Impaired loans without a valuation allowance:
|
|
|
|
|
|
||||||
Real estate:
|
|
|
|
|
|
||||||
1-4 family residential
|
$
|
6,605
|
|
|
$
|
7,023
|
|
|
$
|
—
|
|
Home equity
|
1,153
|
|
|
1,225
|
|
|
—
|
|
|||
Commercial real estate
|
941
|
|
|
1,207
|
|
|
—
|
|
|||
Commercial business
|
241
|
|
|
3,279
|
|
|
—
|
|
|||
Consumer
|
170
|
|
|
183
|
|
|
—
|
|
|||
Total
|
9,110
|
|
|
12,917
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Impaired loans with a valuation allowance:
|
|
|
|
|
|
||||||
1-4 family residential
|
121
|
|
|
313
|
|
|
17
|
|
|||
|
|
|
|
|
|
||||||
Total impaired loans
|
$
|
9,231
|
|
|
$
|
13,230
|
|
|
$
|
17
|
|
|
|
|
|
|
|
||||||
December 31, 2015
|
|
|
|
|
|
||||||
Impaired loans without a valuation allowance:
|
|
|
|
|
|
||||||
Real estate:
|
|
|
|
|
|
||||||
1-4 family residential
|
$
|
6,114
|
|
|
$
|
6,824
|
|
|
$
|
—
|
|
Home equity
|
270
|
|
|
425
|
|
|
—
|
|
|||
Consumer
|
35
|
|
|
39
|
|
|
—
|
|
|||
Total
|
6,419
|
|
|
7,288
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
Impaired loans with a valuation allowance:
|
|
|
|
|
|
||||||
Commercial real estate
|
4,631
|
|
|
4,631
|
|
|
384
|
|
|||
Commercial business
|
10
|
|
|
11
|
|
|
10
|
|
|||
Consumer
|
110
|
|
|
110
|
|
|
10
|
|
|||
Total
|
4,751
|
|
|
4,752
|
|
|
404
|
|
|||
|
|
|
|
|
|
||||||
Total impaired loans
|
$
|
11,170
|
|
|
$
|
12,040
|
|
|
$
|
404
|
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||
2016
|
(In thousands)
|
||||||
Real estate:
|
|
|
|
||||
1-4 family residential
|
$
|
6,451
|
|
|
$
|
449
|
|
Home equity
|
555
|
|
|
29
|
|
||
Commercial real estate
|
3,192
|
|
|
206
|
|
||
Commercial business
|
672
|
|
|
55
|
|
||
Consumer
|
160
|
|
|
12
|
|
||
Total
|
$
|
11,030
|
|
|
$
|
751
|
|
|
|
|
|
||||
2015
|
|
|
|
||||
Real estate:
|
|
|
|
||||
1-4 family residential
|
$
|
4,869
|
|
|
$
|
270
|
|
Home equity
|
575
|
|
|
14
|
|
||
Commercial real estate
|
926
|
|
|
161
|
|
||
Commercial business
|
2
|
|
|
1
|
|
||
Consumer
|
78
|
|
|
6
|
|
||
Total
|
$
|
6,450
|
|
|
$
|
452
|
|
|
|
|
|
||||
2014
|
|
|
|
||||
Real estate:
|
|
|
|
||||
1-4 family residential
|
$
|
4,076
|
|
|
$
|
213
|
|
Home equity
|
476
|
|
|
17
|
|
||
Consumer
|
34
|
|
|
2
|
|
||
Total
|
$
|
4,586
|
|
|
$
|
232
|
|
|
1-4 Family
Residential
|
|
Home
Equity
|
|
Commercial
Real Estate
|
|
Construction
|
|
Commercial
Business
|
|
Consumer
|
|
Total
Loans
|
||||||||||||||
|
(In thousands)
|
||||||||||||||||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loans rated 1 - 6
|
$
|
1,054
|
|
|
$
|
293
|
|
|
$
|
671,872
|
|
|
$
|
76,351
|
|
|
$
|
188,706
|
|
|
$
|
4
|
|
|
$
|
938,280
|
|
Loans rated 7
|
3,514
|
|
|
967
|
|
|
9,720
|
|
|
—
|
|
|
17,510
|
|
|
146
|
|
|
31,857
|
|
|||||||
Loans rated 8
|
2,442
|
|
|
258
|
|
|
5,697
|
|
|
—
|
|
|
18
|
|
|
37
|
|
|
8,452
|
|
|||||||
Loans rated 9
|
645
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
645
|
|
|||||||
Loans rated 10
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Loans not rated
|
843,499
|
|
|
77,201
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29,094
|
|
|
949,794
|
|
|||||||
|
$
|
851,154
|
|
|
$
|
78,719
|
|
|
$
|
687,289
|
|
|
$
|
76,351
|
|
|
$
|
206,234
|
|
|
$
|
29,281
|
|
|
$
|
1,929,028
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loans rated 1 - 6
|
$
|
1,950
|
|
|
$
|
465
|
|
|
$
|
548,360
|
|
|
$
|
79,773
|
|
|
$
|
181,792
|
|
|
$
|
6
|
|
|
$
|
812,346
|
|
Loans rated 7
|
4,461
|
|
|
321
|
|
|
7,765
|
|
|
—
|
|
|
874
|
|
|
—
|
|
|
13,421
|
|
|||||||
Loans rated 8
|
1,592
|
|
|
144
|
|
|
5,078
|
|
|
—
|
|
|
—
|
|
|
149
|
|
|
6,963
|
|
|||||||
Loans rated 9
|
701
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
712
|
|
|||||||
Loans rated 10
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Loans not rated
|
591,234
|
|
|
76,469
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,031
|
|
|
705,734
|
|
|||||||
|
$
|
599,938
|
|
|
$
|
77,399
|
|
|
$
|
561,203
|
|
|
$
|
79,773
|
|
|
$
|
182,677
|
|
|
$
|
38,186
|
|
|
$
|
1,539,176
|
|
|
December 31,
|
|
Estimated
Useful
Lives
|
||||||
|
2016
|
|
2015
|
|
|||||
|
(In thousands)
|
|
|
||||||
Land
|
$
|
4,087
|
|
|
$
|
4,087
|
|
|
|
Buildings
|
10,322
|
|
|
10,322
|
|
|
5 to 40 years
|
||
Leasehold improvements
|
9,334
|
|
|
7,727
|
|
|
5 to 10 years
|
||
Furniture and fixtures
|
3,874
|
|
|
2,601
|
|
|
3 to 5 years
|
||
Technology equipment
|
6,139
|
|
|
5,088
|
|
|
1 to 3 years
|
||
Construction in progress
|
169
|
|
|
70
|
|
|
|
||
Premises and equipment, gross
|
33,925
|
|
|
29,895
|
|
|
|
||
Less accumulated depreciation and amortization
|
(11,891
|
)
|
|
(9,880
|
)
|
|
|
||
Premises and equipment, net
|
$
|
22,034
|
|
|
$
|
20,015
|
|
|
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
NOW and demand
|
$
|
331,508
|
|
|
$
|
288,143
|
|
Regular savings
|
262,984
|
|
|
287,344
|
|
||
Money market
|
573,204
|
|
|
368,050
|
|
||
Brokered money market
|
53,357
|
|
|
41,807
|
|
||
Total non-certificate accounts
|
1,221,053
|
|
|
985,344
|
|
||
|
|
|
|
||||
Term certificates of $250,000 or more
|
77,550
|
|
|
65,364
|
|
||
Term certificates less than $250,000
|
262,564
|
|
|
246,614
|
|
||
Brokered certificates of deposit
|
247,520
|
|
|
136,527
|
|
||
Total certificate accounts
|
587,634
|
|
|
448,505
|
|
||
Total deposits
|
$
|
1,808,687
|
|
|
$
|
1,433,849
|
|
|
Amount
|
|
Weighted
Average
Rate
|
|||
|
(Dollars in thousands)
|
|||||
2017
|
372,461
|
|
|
0.67
|
%
|
|
2018
|
88,220
|
|
|
1.26
|
|
|
2019
|
68,928
|
|
|
1.69
|
|
|
2020
|
38,393
|
|
|
1.90
|
|
|
2021
|
19,632
|
|
|
1.76
|
|
|
|
$
|
587,634
|
|
|
1.00
|
%
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
|
|
(In thousands)
|
|
|
||||||
Current tax provision:
|
|
|
|
|
|
||||||
Federal
|
$
|
3,617
|
|
|
$
|
2,933
|
|
|
$
|
2,695
|
|
State
|
306
|
|
|
206
|
|
|
240
|
|
|||
|
3,923
|
|
|
3,139
|
|
|
2,935
|
|
|||
Deferred tax provision (benefit):
|
|
|
|
|
|
||||||
Federal
|
55
|
|
|
7
|
|
|
(3,183
|
)
|
|||
State
|
47
|
|
|
(148
|
)
|
|
(1,014
|
)
|
|||
Federal and State
|
102
|
|
|
(141
|
)
|
|
(4,197
|
)
|
|||
Change in valuation reserve
|
(220
|
)
|
|
(161
|
)
|
|
640
|
|
|||
Deferred income tax benefit
|
(118
|
)
|
|
(302
|
)
|
|
(3,557
|
)
|
|||
Provision (benefit) for income taxes
|
$
|
3,805
|
|
|
$
|
2,837
|
|
|
$
|
(622
|
)
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
(Dollars in thousands)
|
||||||||||
Statutory federal tax provision (benefit) at 34%
|
$
|
4,236
|
|
|
$
|
3,429
|
|
|
$
|
(274
|
)
|
Increase (decrease) resulting from:
|
|
|
|
|
|
||||||
State taxes, net of federal tax benefit
|
233
|
|
|
39
|
|
|
(511
|
)
|
|||
Dividends received deduction
|
(41
|
)
|
|
(211
|
)
|
|
(201
|
)
|
|||
Tax-exempt bank-owned life insurance
|
(528
|
)
|
|
(351
|
)
|
|
(404
|
)
|
|||
Tax-exempt interest
|
(189
|
)
|
|
(222
|
)
|
|
(277
|
)
|
|||
Change in valuation reserve
|
(220
|
)
|
|
(161
|
)
|
|
640
|
|
|||
Nondeductible IPO costs
|
—
|
|
|
—
|
|
|
202
|
|
|||
Equity incentives
|
339
|
|
|
52
|
|
|
—
|
|
|||
Amortization of low income housing partnership
|
219
|
|
|
—
|
|
|
—
|
|
|||
Tax credits utilized
|
(286
|
)
|
|
(45
|
)
|
|
—
|
|
|||
Accrual adjustment
|
207
|
|
|
13
|
|
|
—
|
|
|||
Statutory rate change for net deferred tax asset from 34% to 35%
|
(289
|
)
|
|
—
|
|
|
—
|
|
|||
Other, net
|
124
|
|
|
294
|
|
|
203
|
|
|||
Tax provision (benefit)
|
$
|
3,805
|
|
|
$
|
2,837
|
|
|
$
|
(622
|
)
|
Effective tax rates
|
30.5
|
%
|
|
28.2
|
%
|
|
77.3
|
%
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Deferred tax assets:
|
|
|
|
||||
Federal
|
$
|
11,700
|
|
|
$
|
12,091
|
|
State
|
3,258
|
|
|
3,188
|
|
||
Deferred tax assets, gross
|
14,958
|
|
|
15,279
|
|
||
Valuation reserve
|
(1,790
|
)
|
|
(1,966
|
)
|
||
Deferred tax assets, net
|
13,168
|
|
|
13,313
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Federal
|
(2,427
|
)
|
|
(2,138
|
)
|
||
State
|
(595
|
)
|
|
(510
|
)
|
||
Deferred tax liabilities
|
(3,022
|
)
|
|
(2,648
|
)
|
||
Net deferred tax asset
|
$
|
10,146
|
|
|
$
|
10,665
|
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Deferred tax assets:
|
|
|
|
||||
Depreciation and amortization
|
$
|
747
|
|
|
$
|
929
|
|
Employee benefit plans and share-based compensation plans
|
571
|
|
|
901
|
|
||
Allowance for loan losses
|
7,660
|
|
|
6,831
|
|
||
Contribution carryover
|
2,317
|
|
|
2,675
|
|
||
Net unrealized loss on securities held as, or transferred from, available for sale
|
893
|
|
|
1,748
|
|
||
Net unrealized losses on defined benefit pension plan
|
1,270
|
|
|
1,052
|
|
||
Deferred rent expense
|
123
|
|
|
28
|
|
||
Other
|
302
|
|
|
131
|
|
||
Valuation reserve
|
(1,790
|
)
|
|
(1,966
|
)
|
||
Deferred tax liabilities:
|
|
|
|
||||
Deferred loan origination costs
|
(1,947
|
)
|
|
(1,664
|
)
|
||
Net deferred tax asset
|
$
|
10,146
|
|
|
$
|
10,665
|
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In thousands)
|
||||||||||
Balance at beginning of year
|
$
|
10,665
|
|
|
$
|
6,233
|
|
|
$
|
2,831
|
|
Deferred tax benefit
|
118
|
|
|
302
|
|
|
3,557
|
|
|||
Tax effect of changes in accumulated other comprehensive income
|
(637
|
)
|
|
4,130
|
|
|
(155
|
)
|
|||
Balance at end of year
|
$
|
10,146
|
|
|
$
|
10,665
|
|
|
$
|
6,233
|
|
|
For the Year Ended December 31, 2016
|
||||||||||
|
Federal
|
|
State
|
|
Total
|
||||||
|
(In thousands)
|
||||||||||
Balance at beginning of year
|
$
|
(200
|
)
|
|
$
|
(1,766
|
)
|
|
$
|
(1,966
|
)
|
Change through the income statement
|
200
|
|
|
20
|
|
|
220
|
|
|||
Change through other comprehensive income
|
—
|
|
|
(44
|
)
|
|
(44
|
)
|
|||
Balance at end of year
|
$
|
—
|
|
|
$
|
(1,790
|
)
|
|
$
|
(1,790
|
)
|
|
Actual
|
|
Minimum
Capital
Requirement
|
|
Minimum
To Be Well
Capitalized
|
|||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
Blue Hills Bancorp, Inc.:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital (to risk weighted assets)
|
$
|
395,325
|
|
|
20.5
|
%
|
|
$
|
154,471
|
|
|
8.0
|
%
|
|
$
|
193,089
|
|
|
10.0
|
%
|
Tier 1 capital (to risk weighted assets)
|
376,575
|
|
|
19.5
|
|
|
115,854
|
|
|
6.0
|
|
|
154,471
|
|
|
8.0
|
|
|||
Common equity Tier 1 (to risk weighted assets)
|
376,575
|
|
|
19.5
|
|
|
86,890
|
|
|
4.5
|
|
|
125,508
|
|
|
6.5
|
|
|||
Tier 1 capital (to average assets)
|
376,575
|
|
|
16.0
|
|
|
94,166
|
|
|
4.0
|
|
|
117,708
|
|
|
5.0
|
|
|||
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital (to risk weighted assets)
|
407,444
|
|
|
24.8
|
|
|
131,231
|
|
|
8.0
|
|
|
164,039
|
|
|
10.0
|
|
|||
Tier 1 capital (to risk weighted assets)
|
390,342
|
|
|
23.8
|
|
|
98,423
|
|
|
6.0
|
|
|
131,231
|
|
|
8.0
|
|
|||
Common equity Tier 1 (to risk weighted assets)
|
390,342
|
|
|
23.8
|
|
|
73,818
|
|
|
4.5
|
|
|
106,625
|
|
|
6.5
|
|
|||
Tier 1 capital (to average assets)
|
390,342
|
|
|
19.6
|
|
|
79,658
|
|
|
4.0
|
|
|
99,573
|
|
|
5.0
|
|
|||
Blue Hills Bank:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital (to risk weighted assets)
|
313,457
|
|
|
16.3
|
|
|
154,196
|
|
|
8.0
|
|
|
192,745
|
|
|
10.0
|
|
|||
Tier 1 capital (to risk weighted assets)
|
294,707
|
|
|
15.3
|
|
|
115,647
|
|
|
6.0
|
|
|
154,196
|
|
|
8.0
|
|
|||
Common equity Tier 1 (to risk weighted assets)
|
294,707
|
|
|
15.3
|
|
|
86,735
|
|
|
4.5
|
|
|
125,284
|
|
|
6.5
|
|
|||
Tier 1 capital (to average assets)
|
294,707
|
|
|
12.5
|
|
|
94,099
|
|
|
4.0
|
|
|
117,623
|
|
|
5.0
|
|
|||
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total capital (to risk weighted assets)
|
296,309
|
|
|
18.1
|
|
|
130,832
|
|
|
8.0
|
|
|
163,540
|
|
|
10.0
|
|
|||
Tier 1 capital (to risk weighted assets)
|
279,207
|
|
|
17.1
|
|
|
98,124
|
|
|
6.0
|
|
|
130,832
|
|
|
8.0
|
|
|||
Common equity Tier 1 (to risk weighted assets)
|
279,207
|
|
|
17.1
|
|
|
73,593
|
|
|
4.5
|
|
|
106,301
|
|
|
6.5
|
|
|||
Tier 1 capital (to average assets)
|
279,207
|
|
|
14.0
|
|
|
79,867
|
|
|
4.0
|
|
|
99,608
|
|
|
5.0
|
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In thousands)
|
||||||||||
Change in plan assets:
|
|
|
|
|
|
||||||
Fair value of plan assets at beginning of year
|
$
|
8,814
|
|
|
$
|
9,443
|
|
|
$
|
9,535
|
|
Actual return (loss) on plan assets
|
847
|
|
|
(304
|
)
|
|
391
|
|
|||
Employer contribution
|
470
|
|
|
—
|
|
|
—
|
|
|||
Benefits paid
|
(320
|
)
|
|
(325
|
)
|
|
(483
|
)
|
|||
Fair value of plan assets at end of year
|
9,811
|
|
|
8,814
|
|
|
9,443
|
|
|||
Change in benefit obligation:
|
|
|
|
|
|
||||||
Benefit obligation at beginning of year
|
10,772
|
|
|
10,135
|
|
|
9,287
|
|
|||
Service cost
|
—
|
|
|
—
|
|
|
484
|
|
|||
Interest cost
|
422
|
|
|
401
|
|
|
407
|
|
|||
Actuarial loss
|
1,022
|
|
|
561
|
|
|
2,230
|
|
|||
Benefits paid
|
(320
|
)
|
|
(325
|
)
|
|
(483
|
)
|
|||
Curtailment gain
|
—
|
|
|
—
|
|
|
(1,790
|
)
|
|||
Benefit obligation at end of year
|
11,896
|
|
|
10,772
|
|
|
10,135
|
|
|||
Funded status and accrued liability at end of year
|
$
|
(2,085
|
)
|
|
$
|
(1,958
|
)
|
|
$
|
(692
|
)
|
|
|
|
|
|
|
||||||
Accumulated benefit obligation at end of year
|
$
|
11,896
|
|
|
$
|
10,772
|
|
|
$
|
10,135
|
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||
Discount rate
|
3.86
|
%
|
|
4.01
|
%
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In thousands)
|
||||||||||
Service cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
484
|
|
Interest cost
|
422
|
|
|
401
|
|
|
407
|
|
|||
Expected return on plan assets
|
(720
|
)
|
|
(745
|
)
|
|
(735
|
)
|
|||
Amortization of net actuarial loss (gain)
|
271
|
|
|
110
|
|
|
(70
|
)
|
|||
Curtailment gain
|
—
|
|
|
—
|
|
|
(1,304
|
)
|
|||
Net periodic pension benefit
|
$
|
(27
|
)
|
|
$
|
(234
|
)
|
|
$
|
(1,218
|
)
|
|
Years Ended December 31,
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
Discount rate
|
4.01
|
%
|
|
4.00
|
%
|
|
4.25
|
%
|
Expected long-term rate of return on plan assets
|
8.00
|
%
|
|
8.00
|
%
|
|
8.00
|
%
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Fair Value
|
||||||||
|
(In thousands)
|
||||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
||||||||
Collective funds
|
$
|
681
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
681
|
|
Equity securities
|
1,929
|
|
|
—
|
|
|
—
|
|
|
1,929
|
|
||||
Mutual funds
|
1,209
|
|
|
—
|
|
|
—
|
|
|
1,209
|
|
||||
Short-term investments
|
124
|
|
|
—
|
|
|
—
|
|
|
124
|
|
||||
Total investments measured in the fair value hierarchy
|
3,943
|
|
|
—
|
|
|
—
|
|
|
3,943
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Investments measured at net asset value (a)
|
—
|
|
|
—
|
|
|
—
|
|
|
5,868
|
|
||||
|
$
|
3,943
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,811
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
December 31, 2015
|
|
|
|
|
|
|
|
||||||||
Collective funds
|
$
|
1,126
|
|
|
$
|
4,266
|
|
|
$
|
—
|
|
|
$
|
5,392
|
|
Equity securities
|
1,566
|
|
|
—
|
|
|
—
|
|
|
1,566
|
|
||||
Mutual funds
|
1,046
|
|
|
—
|
|
|
—
|
|
|
1,046
|
|
||||
Hedge funds
|
—
|
|
|
—
|
|
|
660
|
|
|
660
|
|
||||
Short-term investments
|
150
|
|
|
—
|
|
|
—
|
|
|
150
|
|
||||
|
$
|
3,888
|
|
|
$
|
4,266
|
|
|
$
|
660
|
|
|
$
|
8,814
|
|
|
Amount
|
||
Year Ending December 31,
|
(In thousands)
|
||
2017
|
$
|
785
|
|
2018
|
1,087
|
|
|
2019
|
614
|
|
|
2020
|
710
|
|
|
2021
|
930
|
|
|
2022-2026
|
3,223
|
|
Shares held by the ESOP include the following:
|
December 31, 2016
|
|
December 31, 2015
|
||
|
|
|
|
||
Allocated
|
149,613
|
|
|
75,912
|
|
Committed to be allocated
|
75,912
|
|
|
75,912
|
|
Unallocated
|
2,049,608
|
|
|
2,124,846
|
|
|
2,275,133
|
|
|
2,276,670
|
|
•
|
Volatility is based on peer group volatility because the Company does not have a sufficient trading history.
|
•
|
Expected life represents the period of time that the option is expected to be outstanding, taking into account the contractual term, and the vesting period.
|
•
|
Expected dividend yield is based on the Company's history and expectation of dividend payouts.
|
•
|
The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for a period equivalent to the expected life of the option.
|
Date of grant
|
February 29, 2016
|
|
|
October 7, 2015
|
|
||
Options granted
|
55,000
|
|
|
2,434,000
|
|
||
Vesting period (years)
|
5
|
|
|
5
|
|
||
Expiration date
|
February 28, 2026
|
|
|
October 7, 2025
|
|
||
Expected volatility
|
28.47
|
%
|
|
28.85
|
%
|
||
Expected life (years)
|
6.5
|
|
|
6.5
|
|
||
Expected dividend yield
|
0.58
|
%
|
|
0.54
|
%
|
||
Risk free interest rate
|
1.38
|
%
|
|
1.55
|
%
|
||
Fair value per option
|
$
|
4.02
|
|
|
$
|
4.23
|
|
Options
|
Stock Option Awards
|
|
Weighted Average Exercise Price
|
|
Weighted Average Remaining Contractual Term (years)
|
|
Aggregate Intrinsic Value
|
||||||
Balance at January 1, 2016
|
2,434,000
|
|
|
$
|
14.07
|
|
|
—
|
|
|
$
|
—
|
|
Granted
|
55,000
|
|
|
13.80
|
|
|
—
|
|
|
—
|
|
||
Forfeited
|
(36,450
|
)
|
|
14.07
|
|
|
—
|
|
|
—
|
|
||
Exercised
|
(2,880
|
)
|
|
14.07
|
|
|
—
|
|
|
—
|
|
||
Balance at December 31, 2016
|
2,449,670
|
|
|
$
|
14.06
|
|
|
8.77
|
|
|
$
|
11,479,306
|
|
Outstanding and expected to vest at December 31, 2016
|
2,449,670
|
|
|
$
|
14.06
|
|
|
8.77
|
|
|
$
|
11,479,306
|
|
Exercisable at December 31, 2016
|
478,390
|
|
|
$
|
14.07
|
|
|
3.78
|
|
|
$
|
2,238,865
|
|
Unrecognized compensation cost at December 31, 2016
|
$7,827,000
|
|
|
|
|
|
|
||||||
Weighted average remaining recognition period (years) at December 31, 2016
|
3.78
|
|
|
|
|
|
|
|
Outstanding Restricted Stock Awards
|
|
Weighted Average Grant Price
|
||||
|
|
||||||
Non-vested stock awards at January 1, 2016
|
983,175
|
|
|
$
|
14.07
|
|
|
Granted
|
31,450
|
|
|
13.83
|
|
||
Vested
|
(186,755
|
)
|
|
14.07
|
|
||
Forfeited
|
(11,800
|
)
|
|
14.07
|
|
||
Non-vested stock awards at December 31, 2016
|
816,070
|
|
|
$
|
14.06
|
|
|
Unrecognized compensation cost, inclusive of directors' fees at December 31, 2016
|
$
|
10,645,000
|
|
|
|
||
Weighted average remaining recognition period (years) at December 31, 2016
|
3.78
|
|
|
|
|
2016
|
|
2015
|
||||
|
(Dollars in thousands, except per share amounts)
|
||||||
Net income applicable to common stock
|
$
|
8,653
|
|
|
$
|
7,227
|
|
|
|
|
|
||||
Average number of common shares outstanding
|
27,464,996
|
|
|
28,460,077
|
|
||
Less: Average unvested restricted stock awards
|
(957,364
|
)
|
|
(231,652
|
)
|
||
Less: Average unallocated ESOP shares
|
(2,087,227
|
)
|
|
(2,163,478
|
)
|
||
Average number of common shares outstanding used to calculate basic earnings per common share
|
24,420,405
|
|
|
26,064,947
|
|
||
|
|
|
|
|
|||
Effect of dilutive unvested restricted stock awards
|
120,524
|
|
|
4,642
|
|
||
Average number of common shares outstanding used to calculate diluted earnings per common share
|
24,540,929
|
|
|
26,069,589
|
|
||
|
|
|
|
||||
Earnings per common share:
|
|
|
|
||||
Basic
|
$
|
0.35
|
|
|
$
|
0.28
|
|
Diluted
|
$
|
0.35
|
|
|
$
|
0.28
|
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Commitments to originate loans
|
$
|
51,622
|
|
|
$
|
69,554
|
|
Letters of credit
|
3,277
|
|
|
3,571
|
|
||
Unused lines-of-credit:
|
|
|
|
||||
Commercial
|
164,185
|
|
|
128,748
|
|
||
Home equity
|
55,344
|
|
|
44,968
|
|
||
Consumer
|
15,995
|
|
|
16,033
|
|
||
Undisbursed construction loans
|
96,169
|
|
|
80,336
|
|
Year Ending December 31,
|
Amount
|
||
|
(In thousands)
|
||
2017
|
$
|
2,530
|
|
2018
|
2,665
|
|
|
2019
|
2,479
|
|
|
2020
|
2,398
|
|
|
2021
|
2,288
|
|
|
Thereafter
|
12,408
|
|
|
|
$
|
24,768
|
|
|
Derivative Gains
|
|
Derivative Losses
|
||||||||||||
|
Notional
Amount
|
|
Fair
Value
|
|
Notional
Amount
|
|
Fair
Value
|
||||||||
|
(In thousands)
|
||||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
||||||||
Economic hedges:
|
|
|
|
|
|
|
|
||||||||
Commercial loan level interest rate swap agreements
|
$
|
419,488
|
|
|
$
|
9,016
|
|
|
$
|
419,488
|
|
|
$
|
8,932
|
|
Other contracts
|
15,865
|
|
|
8
|
|
|
33,045
|
|
|
56
|
|
||||
Total derivatives
|
$
|
435,353
|
|
|
$
|
9,024
|
|
|
$
|
452,533
|
|
|
$
|
8,988
|
|
December 31, 2015
|
|
|
|
|
|
|
|
||||||||
Economic hedges:
|
|
|
|
|
|
|
|
||||||||
Commercial loan level interest rate swap agreements
|
$
|
282,546
|
|
|
$
|
7,956
|
|
|
$
|
282,546
|
|
|
$
|
8,411
|
|
Other contracts
|
8,300
|
|
|
6
|
|
|
12,698
|
|
|
78
|
|
||||
Total derivatives
|
$
|
290,846
|
|
|
$
|
7,962
|
|
|
$
|
295,244
|
|
|
$
|
8,489
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Fair Value
|
||||||||
|
(In thousands)
|
||||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
||||||||
Debt securities
|
$
|
—
|
|
|
$
|
161,668
|
|
|
$
|
—
|
|
|
$
|
161,668
|
|
Marketable equity securities
|
43,168
|
|
|
—
|
|
|
—
|
|
|
43,168
|
|
||||
Derivative assets:
|
|
|
|
|
|
|
|
||||||||
Interest rate swap agreements
|
—
|
|
|
9,024
|
|
|
—
|
|
|
9,024
|
|
||||
Forward loan sale commitments
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
||||
Mortgage loan commitments
|
—
|
|
|
—
|
|
|
111
|
|
|
111
|
|
||||
Total assets
|
$
|
43,168
|
|
|
$
|
170,692
|
|
|
$
|
126
|
|
|
$
|
213,986
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Derivative liabilities:
|
|
|
|
|
|
|
|
||||||||
Interest rate swap agreements
|
$
|
—
|
|
|
$
|
8,988
|
|
|
$
|
—
|
|
|
$
|
8,988
|
|
Forward loan sale commitments
|
—
|
|
|
—
|
|
|
74
|
|
|
74
|
|
||||
Mortgage loan commitments
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
||||
Total liabilities
|
$
|
—
|
|
|
$
|
8,988
|
|
|
$
|
77
|
|
|
$
|
9,065
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2015
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Securities available for sale:
|
|
|
|
|
|
|
|
||||||||
Debt securities
|
$
|
—
|
|
|
$
|
184,114
|
|
|
$
|
—
|
|
|
$
|
184,114
|
|
Marketable equity securities
|
47,576
|
|
|
—
|
|
|
—
|
|
|
47,576
|
|
||||
Interest rate swap agreements
|
—
|
|
|
7,962
|
|
|
—
|
|
|
7,962
|
|
||||
Total assets
|
$
|
47,576
|
|
|
$
|
192,076
|
|
|
$
|
—
|
|
|
$
|
239,652
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Interest rate swap agreements
|
$
|
—
|
|
|
$
|
8,489
|
|
|
$
|
—
|
|
|
$
|
8,489
|
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||||||
Impaired loans
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
136
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,752
|
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
(In thousands)
|
||||||||||
Impaired loans
|
$
|
(2,911
|
)
|
|
$
|
(404
|
)
|
|
$
|
(18
|
)
|
|
Carrying
Amount |
|
Fair Value
|
||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
30,496
|
|
|
$
|
30,496
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
30,496
|
|
Securities available for sale
|
204,836
|
|
|
43,168
|
|
|
161,668
|
|
|
—
|
|
|
204,836
|
|
|||||
Securities held to maturity
|
201,027
|
|
|
—
|
|
|
198,093
|
|
|
—
|
|
|
198,093
|
|
|||||
Federal Home Loan Bank stock
|
13,352
|
|
|
—
|
|
|
—
|
|
|
13,352
|
|
|
13,352
|
|
|||||
Loans and loans held for sale, net
|
1,915,632
|
|
|
—
|
|
|
—
|
|
|
1,903,978
|
|
|
1,903,978
|
|
|||||
Accrued interest receivable
|
6,057
|
|
|
—
|
|
|
—
|
|
|
6,057
|
|
|
6,057
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Deposits
|
1,808,687
|
|
|
—
|
|
|
—
|
|
|
1,808,629
|
|
|
1,808,629
|
|
|||||
Borrowings
|
251,000
|
|
|
—
|
|
|
250,648
|
|
|
—
|
|
|
250,648
|
|
|||||
On-balance sheet derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest rate swap agreements
|
9,024
|
|
|
—
|
|
|
9,024
|
|
|
—
|
|
|
9,024
|
|
|||||
Forward loan sale commitments
|
15
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
|||||
Mortgage loan commitments
|
111
|
|
|
—
|
|
|
—
|
|
|
111
|
|
|
111
|
|
|||||
Derivative liabilities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest rate swap agreements:
|
8,988
|
|
|
—
|
|
|
8,988
|
|
|
—
|
|
|
8,988
|
|
|||||
Forward loan sale commitments
|
74
|
|
|
—
|
|
|
—
|
|
|
74
|
|
|
74
|
|
|||||
Mortgage loan commitments
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||
|
(In thousands)
|
||||||||||||||||||
December 31, 2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
33,298
|
|
|
$
|
33,298
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
33,298
|
|
Securities available for sale
|
231,690
|
|
|
47,576
|
|
|
184,114
|
|
|
—
|
|
|
231,690
|
|
|||||
Securities held to maturity
|
200,141
|
|
|
634
|
|
|
198,592
|
|
|
—
|
|
|
199,226
|
|
|||||
Federal Home Loan Bank stock
|
13,567
|
|
|
—
|
|
|
—
|
|
|
13,567
|
|
|
13,567
|
|
|||||
Loans and loans held for sale, net
|
1,536,152
|
|
|
—
|
|
|
—
|
|
|
1,538,809
|
|
|
1,538,809
|
|
|||||
Accrued interest receivable
|
5,344
|
|
|
—
|
|
|
—
|
|
|
5,344
|
|
|
5,344
|
|
|||||
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Deposits
|
1,433,849
|
|
|
—
|
|
|
—
|
|
|
1,434,179
|
|
|
1,434,179
|
|
|||||
Borrowings
|
260,000
|
|
|
—
|
|
|
260,244
|
|
|
—
|
|
|
260,244
|
|
|||||
On-balance sheet derivative financial instruments:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Derivative assets:
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest rate swap agreements
|
7,962
|
|
|
—
|
|
|
7,962
|
|
|
—
|
|
|
7,962
|
|
|||||
Derivative liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest rate swap agreements:
|
8,489
|
|
|
—
|
|
|
8,489
|
|
|
—
|
|
|
8,489
|
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Securities available for sale:
|
|
|
|
||||
Net unrealized loss
|
$
|
(3,087
|
)
|
|
$
|
(5,701
|
)
|
Tax effect
|
1,007
|
|
|
1,945
|
|
||
Net-of-tax amount
|
(2,080
|
)
|
|
(3,756
|
)
|
||
Securities held to maturity:
|
|
|
|
||||
Net unrealized gain on transferred securities
|
337
|
|
|
571
|
|
||
Tax effect
|
(114
|
)
|
|
(197
|
)
|
||
Net-of-tax amount
|
223
|
|
|
374
|
|
||
Defined benefit pension plan:
|
|
|
|
||||
Unrecognized net actuarial loss
|
(3,482
|
)
|
|
(2,858
|
)
|
||
Tax effect
|
1,270
|
|
|
1,052
|
|
||
Net-of-tax amount
|
(2,212
|
)
|
|
(1,806
|
)
|
||
|
$
|
(4,069
|
)
|
|
$
|
(5,188
|
)
|
|
|
|
|
|
Securities Available for Sale
|
|
Securities Held to Maturity
|
|
Defined Benefit Pension Plan
|
|
Total
|
||||||||
Year Ended December 31, 2016
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
$
|
(3,756
|
)
|
|
$
|
374
|
|
|
$
|
(1,806
|
)
|
|
$
|
(5,188
|
)
|
Other comprehensive income (loss) before reclassifications
|
3,849
|
|
|
—
|
|
|
(895
|
)
|
|
2,954
|
|
||||
Realized gains reclassified
|
(1,235
|
)
|
|
—
|
|
|
—
|
|
|
(1,235
|
)
|
||||
Amortization of actuarial losses
|
—
|
|
|
—
|
|
|
271
|
|
|
271
|
|
||||
Amortization of amounts previously recorded upon transfer to held-to-maturity from available-for-sale
|
—
|
|
|
(234
|
)
|
|
—
|
|
|
(234
|
)
|
||||
Tax effects
|
(938
|
)
|
|
83
|
|
|
218
|
|
|
(637
|
)
|
||||
Net current-period other comprehensive income (loss)
|
1,676
|
|
|
(151
|
)
|
|
(406
|
)
|
|
1,119
|
|
||||
Ending balance
|
$
|
(2,080
|
)
|
|
$
|
223
|
|
|
$
|
(2,212
|
)
|
|
$
|
(4,069
|
)
|
|
|
|
|
|
|
|
|
||||||||
Year ended December 31, 2015
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
$
|
3,392
|
|
|
$
|
—
|
|
|
$
|
(815
|
)
|
|
$
|
2,577
|
|
Other comprehensive loss before reclassifications
|
(8,332
|
)
|
|
—
|
|
|
(1,610
|
)
|
|
(9,942
|
)
|
||||
Realized gains reclassified
|
(1,968
|
)
|
|
—
|
|
|
—
|
|
|
(1,968
|
)
|
||||
Amortization of actuarial losses
|
—
|
|
|
—
|
|
|
110
|
|
|
110
|
|
||||
Unrealized gains on securities reclassified as held to maturity
|
(666
|
)
|
|
666
|
|
|
—
|
|
|
—
|
|
||||
Amortization of amounts previously recorded upon transfer to held-to-maturity from available-for-sale
|
—
|
|
|
(95
|
)
|
|
—
|
|
|
(95
|
)
|
||||
Tax effects
|
3,818
|
|
|
(197
|
)
|
|
509
|
|
|
4,130
|
|
||||
Net current-period other comprehensive income (loss)
|
(7,148
|
)
|
|
374
|
|
|
(991
|
)
|
|
(7,765
|
)
|
||||
Ending balance
|
$
|
(3,756
|
)
|
|
$
|
374
|
|
|
$
|
(1,806
|
)
|
|
$
|
(5,188
|
)
|
|
|
|
|
|
|
|
|
||||||||
Year Ended December 31, 2014
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
$
|
1,983
|
|
|
$
|
—
|
|
|
$
|
482
|
|
|
$
|
2,465
|
|
Other comprehensive income (loss) before reclassifications
|
4,942
|
|
|
—
|
|
|
(2,090
|
)
|
|
2,852
|
|
||||
Realized gains reclassified
|
(2,515
|
)
|
|
—
|
|
|
—
|
|
|
(2,515
|
)
|
||||
Amortization of actuarial gains
|
—
|
|
|
—
|
|
|
(70
|
)
|
|
(70
|
)
|
||||
Tax effects
|
(1,018
|
)
|
|
—
|
|
|
863
|
|
|
(155
|
)
|
||||
Net current-period other comprehensive income (loss)
|
1,409
|
|
|
—
|
|
|
(1,297
|
)
|
|
112
|
|
||||
Ending balance
|
$
|
3,392
|
|
|
$
|
—
|
|
|
$
|
(815
|
)
|
|
$
|
2,577
|
|
|
December 31,
|
||||||
BALANCE SHEETS
|
2016
|
|
2015
|
||||
|
(In thousands)
|
||||||
Assets
|
|
|
|
||||
Cash balances at Blue Hills Bank
|
$
|
66,326
|
|
|
$
|
100,965
|
|
Total cash and cash equivalents
|
66,326
|
|
|
100,965
|
|
||
Investment in subsidiaries
|
328,201
|
|
|
311,357
|
|
||
Other assets
|
13,499
|
|
|
7,993
|
|
||
Total assets
|
$
|
408,026
|
|
|
$
|
420,315
|
|
|
|
|
|
||||
Liabilities and Stockholders' Equity
|
|
|
|
||||
Liability to ESOP
|
$
|
20,995
|
|
|
$
|
21,459
|
|
Accrued expenses
|
124
|
|
|
27
|
|
||
Stockholders' equity
|
386,907
|
|
|
398,829
|
|
||
Total liabilities and stockholders' equity
|
$
|
408,026
|
|
|
$
|
420,315
|
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
STATEMENTS OF OPERATIONS
|
(In thousands)
|
||||||||||
Loss before income taxes and equity in undistributed net income of subsidiaries
|
$
|
(2,478
|
)
|
|
$
|
(1,860
|
)
|
|
$
|
(9,432
|
)
|
Applicable income tax benefit
|
(758
|
)
|
|
(1,112
|
)
|
|
(3,277
|
)
|
|||
Loss before equity in income of subsidiaries
|
(1,720
|
)
|
|
(748
|
)
|
|
(6,155
|
)
|
|||
Equity in undistributed net income of subsidiaries
|
10,373
|
|
|
7,975
|
|
|
5,972
|
|
|||
Net income (loss)
|
$
|
8,653
|
|
|
$
|
7,227
|
|
|
$
|
(183
|
)
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
STATEMENTS OF CASH FLOWS
|
(In thousands)
|
||||||||||
|
|
|
|
|
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income (loss)
|
$
|
8,653
|
|
|
$
|
7,227
|
|
|
(183
|
)
|
|
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
|
|
|
|
|
|
||||||
Equity in undistributed net income of subsidiaries
|
(10,373
|
)
|
|
(7,975
|
)
|
|
(5,972
|
)
|
|||
Charitable Foundation contribution
|
—
|
|
|
—
|
|
|
6,943
|
|
|||
Excess tax benefit from deferred and stock based compensation
|
(105
|
)
|
|
(166
|
)
|
|
—
|
|
|||
Net change in other assets
|
11,625
|
|
|
(1,157
|
)
|
|
(1,731
|
)
|
|||
Net change in other liabilities
|
97
|
|
|
(241
|
)
|
|
267
|
|
|||
Net cash provided by (used for) operating activities
|
9,897
|
|
|
(2,312
|
)
|
|
(676
|
)
|
|||
|
|
|
|
|
|
||||||
Cash flows used for investing activities:
|
|
|
|
|
|
||||||
Investment in Blue Hills Bank
|
(16,844
|
)
|
|
(3,929
|
)
|
|
(161,820
|
)
|
|||
Net cash used for investing activities
|
(16,844
|
)
|
|
(3,929
|
)
|
|
(161,820
|
)
|
|||
|
|
|
|
|
|
||||||
Cash flows provided by (used for) financing activities:
|
|
|
|
|
|
||||||
Proceeds from the issuance of common stock
|
—
|
|
|
—
|
|
|
274,143
|
|
|||
Redemption of SBLF preferred stock
|
—
|
|
|
—
|
|
|
(18,724
|
)
|
|||
Excess tax benefit from deferred and stock based compensation
|
105
|
|
|
166
|
|
|
—
|
|
|||
Repurchase of common stock
|
(24,432
|
)
|
|
(13,121
|
)
|
|
—
|
|
|||
Share redemption for tax withholdings
|
(730
|
)
|
|
(439
|
)
|
|
—
|
|
|||
Proceeds from exercise of stock options
|
40
|
|
|
—
|
|
|
—
|
|
|||
Common and preferred stock dividends paid
|
(2,675
|
)
|
|
(1,032
|
)
|
|
(439
|
)
|
|||
Net cash provided by (used for) financing activities
|
(27,692
|
)
|
|
(14,426
|
)
|
|
254,980
|
|
|||
|
|
|
|
|
|
||||||
Net change in cash and cash equivalents
|
(34,639
|
)
|
|
(20,667
|
)
|
|
92,484
|
|
|||
Cash and cash equivalents at beginning of year
|
100,965
|
|
|
121,632
|
|
|
29,148
|
|
|||
Cash and cash equivalents at end of year
|
$
|
66,326
|
|
|
$
|
100,965
|
|
|
$
|
121,632
|
|
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||
|
(In thousands, except share data)
|
||||||||||||||||||||||||||||||
Interest and dividend income
|
$
|
16,063
|
|
|
$
|
12,682
|
|
|
$
|
16,356
|
|
|
$
|
13,130
|
|
|
$
|
17,685
|
|
|
$
|
15,418
|
|
|
$
|
19,434
|
|
|
$
|
17,071
|
|
Interest expense
|
2,862
|
|
|
2,017
|
|
|
3,040
|
|
|
2,015
|
|
|
3,190
|
|
|
2,213
|
|
|
3,484
|
|
|
2,499
|
|
||||||||
Net interest and dividend income
|
13,201
|
|
|
10,665
|
|
|
13,316
|
|
|
11,115
|
|
|
14,495
|
|
|
13,205
|
|
|
15,950
|
|
|
14,572
|
|
||||||||
Provision (credit) for loan losses
|
(27
|
)
|
|
279
|
|
|
1,113
|
|
|
544
|
|
|
2,872
|
|
|
1,318
|
|
|
927
|
|
|
1,949
|
|
||||||||
Other noninterest income
|
1,621
|
|
|
866
|
|
|
2,147
|
|
|
2,210
|
|
|
3,834
|
|
|
1,456
|
|
|
3,509
|
|
|
2,179
|
|
||||||||
Realized securities gains (losses), net
|
(244
|
)
|
|
1,318
|
|
|
664
|
|
|
267
|
|
|
298
|
|
|
238
|
|
|
298
|
|
|
145
|
|
||||||||
Total noninterest income
|
1,377
|
|
|
2,184
|
|
|
2,811
|
|
|
2,477
|
|
|
4,132
|
|
|
1,694
|
|
|
3,807
|
|
|
2,324
|
|
||||||||
Total noninterest expense
|
12,068
|
|
|
10,626
|
|
|
12,935
|
|
|
10,660
|
|
|
13,234
|
|
|
10,848
|
|
|
13,509
|
|
|
11,948
|
|
||||||||
Provision for income taxes
|
870
|
|
|
638
|
|
|
721
|
|
|
689
|
|
|
891
|
|
|
923
|
|
|
1,323
|
|
|
587
|
|
||||||||
Net income
|
$
|
1,667
|
|
|
$
|
1,306
|
|
|
$
|
1,358
|
|
|
$
|
1,699
|
|
|
$
|
1,630
|
|
|
$
|
1,810
|
|
|
$
|
3,998
|
|
|
$
|
2,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic earnings per share
|
$
|
0.07
|
|
|
$
|
0.05
|
|
|
$
|
0.06
|
|
|
$
|
0.06
|
|
|
$
|
0.07
|
|
|
$
|
0.07
|
|
|
$
|
0.17
|
|
|
$
|
0.09
|
|
Diluted earnings per share
|
$
|
0.07
|
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.06
|
|
|
$
|
0.07
|
|
|
$
|
0.07
|
|
|
$
|
0.17
|
|
|
$
|
0.09
|
|
Weighted average common shares (basic)
|
25,066,086
|
|
|
26,274,738
|
|
|
24,575,211
|
|
|
26,293,560
|
|
|
24,129,512
|
|
|
26,183,381
|
|
|
23,919,483
|
|
|
25,500,755
|
|
||||||||
Weighted average common shares (diluted)
|
25,132,441
|
|
|
26,274,738
|
|
|
24,699,794
|
|
|
26,293,560
|
|
|
24,307,540
|
|
|
26,183,381
|
|
|
24,032,613
|
|
|
25,554,961
|
|
ITEM 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM 9A.
|
CONTROLS AND PROCEDURES
|
ITEM 9B.
|
OTHER INFORMATION
|
ITEM 11.
|
EXECUTIVE COMPENSATION
|
ITEM 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
ITEM 14.
|
PRINCIPAL ACCOUNTING FEES AND SERVICES
|
ITEM 15.
|
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|
(A)
|
Reports of Independent Registered Public Accounting Firm
|
(B)
|
Consolidated Balance Sheets as of December 31,
2016
and
2015
|
(C)
|
Consolidated Statements of Operations for the years ended December 31,
2016
,
2015
and
2014
|
(D)
|
Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31,
2016
,
2015
and
2014
|
(E)
|
Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31,
2016
,
2015
and
2014
|
(F)
|
Consolidated Statements of Cash Flows for the years ended December 31,
2016
,
2015
and
2014
|
(G)
|
Notes to Consolidated Financial Statements.
|
3.1
|
Articles of Incorporation of Blue Hills Bancorp, Inc. (Incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form S-1 (File No. 333-194486), as amended, initially filed with the SEC on March 11, 2014)
|
3.2
|
Bylaws of Blue Hills Bancorp, Inc. (Incorporated by reference to Exhibit 3.2 to the Company’s Registration Statement on Form S-1 (File No. 333-194486), as amended, initially filed with the SEC on March 11, 2014)
|
4
|
Form of Common Stock Certificate of Blue Hills Bancorp, Inc. (Incorporated by reference to Exhibit 4 to the Company’s Registration Statement on Form S-1 (File No. 333-194486), as amended, initially filed with the SEC on March 11, 2014)
|
10.1
|
Amended and Restated Employment Agreement between Hyde Park Bancorp, Inc., Hyde Park Bancorp, MHC, Blue Hills Bank and William M. Parent (Incorporated by reference to Exhibit 10.1 to the Company’s Registration Statement on Form S-1 (File No. 333-194486), as amended, initially filed with the SEC on March 11, 2014)+
|
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 (Incorporated by reference to Exhibit 10.2 to the Company’s Registration Statement on Form S-1 (File No. 333-194486), as amended, initially filed with the SEC on March 11, 2014)+
|
10.3
|
Amended and Restated Blue Hills Bank Supplemental Executive Retirement Plan (Incorporated by reference to Exhibit 10.3 to the Company’s Registration Statement on Form S-1 (File No. 333-194486), as amended, initially filed with the SEC on March 11, 2014)+
|
10.4
|
Amended and Restated Blue Hills Bank Director Supplemental Executive Retirement Plan (Incorporated by reference to Exhibit 10.4 to the Company’s Registration Statement on Form S-1 (File No. 333-194486), as amended, initially filed with the SEC on March 11, 2014)+
|
10.5
|
Blue Hills Bancorp, Inc. 2015 Equity Incentive Plan (Incorporated by reference to Appendix A of the Proxy Statement for the 2015 Annual Meeting of Stockholders (File No. 1-36551), filed July 24, 2015).
|
10.6
|
Performance Based Annual Incentive Plan for 2016+
|
10.7
|
Form of Employee Stock Option Agreement Under the Blue Hills Bancorp, Inc 2015 Equity Incentive Plan (Incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q (File No. 1-36551), as filed with the SEC on November 13, 2015)
|
10.8
|
Form of Director Stock Option Agreement under the Blue Hills Bancorp, Inc. 2015 Equity Incentive Plan (Incorporating by reference to Exhibit 10.2 to the Company's Form the Company's Form 10-Q (File No. 1-36551), as filed with the SEC on November 13, 2015)
|
10.9
|
Form of Restricted Stock Award Agreement under the Blue Hills Bancorp, Inc. 2015 Equity Incentive Plan (Incorporating by reference to Exhibit 10.2 to the Company's Form the Company's Form 10-Q (File No. 1-36551), as filed with the SEC on November 13, 2015)
|
10.10
|
Form of Performance-Based Restricted Stock Award Agreement with William M. Parent under the Blue Hills Bancorp, Inc. 2015 Equity Incentive Plan (Incorporating by reference to Exhibit 10.2 to the Company's Form the Company's Form 10-Q (File No. 1-36551), as filed with the SEC on November 13, 2015)
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21
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Subsidiaries of Registrant (Incorporated by reference to Exhibit 21 to the Company’s Registration Statement on Form S-1 (File No. 333-194486), as amended, initially filed with the SEC on March 11, 2014)
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23
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Consent of Independent Registered Public Accounting Firm
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31.1
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Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
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31.2
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Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
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32
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Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
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101
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The following financial statements for the year ended December 31, 2016, 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.
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101.INS
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XBRL Instance Document
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101.SCH
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XBRL Taxonomy Extension Schema Document
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101.CAL
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XBRL Taxonomy Extension Calculation Linkbase Document
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase Document
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101.LAB
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XBRL Taxonomy Extension Labels Linkbase Document
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101.PRE
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XBRL XBRL Taxonomy Extension Presentation Linkbase Document
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ITEM 16.
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FORM 10-K SUMMARY
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BLUE HILLS BANCORP, INC.
(Registrant)
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Date: March 8, 2017
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By:
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/s/ William M. Parent
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William M. Parent
President and Chief Executive Officer
(Duly Authorized Representative)
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Signatures
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Title
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Date
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/s/ William M. Parent
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William M. Parent
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President, Chief Executive Officer and Director (Principal Executive Officer)
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March 8, 2017
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/s/ James E. Kivlehan
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James E. Kivlehan
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Executive Vice President and Chief Financial Officer (Principal Accounting and Financial Officer)
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March 8, 2017
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/s/ David J. Houston, Jr.
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David J. Houston, Jr.
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Chairman of the Board
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March 8, 2017
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/s/ George E. Clancy
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George E. Clancy
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Director
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March 8, 2017
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/s/ Anthony LaCava
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Anthony LaCava
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Director
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March 8, 2017
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/s/ Brian G. Leary
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Brian G. Leary
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Director
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March 8, 2017
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/s/ Peter J. Manning
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Peter J. Manning
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Director
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March 8, 2017
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/s/ Ronald K. Perry
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Ronald K. Perry
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Director
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March 8, 2017
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/s/ David Powers
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David Powers
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Director
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March 8, 2017
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/s/ Pamela C. Scott
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Pamela C. Scott
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Director
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March 8, 2017
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/s/ Janice L. Shields
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Janice L. Shields
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Director
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March 8, 2017
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/s/ Scott Smith
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Scott Smith
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Director
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March 8, 2017
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•
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All employees must be in good standing with the Bank, meaning that employees must (a) not be on a performance improvement plan at any time during the Plan Year; (b) have had an overall “Meets Expectations” or higher rating on the annual performance evaluation performed during the Plan Year, and (3) have complied with all Bank policies and conduct during the Plan Period.
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•
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New employees must be employed by September 30
th
in a given plan year to be eligible for an award.
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•
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Employees hired after September 30
th
must wait until the next fiscal year to be eligible to participate.
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•
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Employees hired before September 30
th
who works a partial year will receive pro-rated award.
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•
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Eligible employees who terminate employment due to disability or death can receive a partial award for the year, even if they are not employed as of the award payout date.
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•
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Employees who terminate employment for reasons other than those noted above, shall not be entitled to an award as employees must be employed as of the award payout date.
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Tier
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Grade
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Bonus as % of Salary
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Goal Weighting
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|
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Threshold Target Max
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Company/Dept Individual
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I
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22+
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20% 40% 60%
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100%
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II
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20-21
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15% 30% 45%
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75% 25%
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III
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16-19
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10% 20% 30%
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75% 25%
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IV
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14-15
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7.5% 15% 22.5%
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60% 40%
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V
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10-13
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6% 12% 18%
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50% 50%
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VI
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2-9
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3% 5% 7%
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25% 75%
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/s/ Wolf & Company, P.C.
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Boston, Massachusetts
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March 8, 2017
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Date: March 8, 2017
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/s/ William M. Parent
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William M. Parent
President and Chief Executive Officer
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Date: March 8, 2017
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/s/ James E. Kivlehan
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James E. Kivlehan
Executive Vice President and Chief Financial Officer
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1.
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2.
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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|
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Date: March 8, 2017
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/s/ William M. Parent
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William M. Parent
President and Chief Executive Officer
|
|
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Date: March 8, 2017
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/s/ James E. Kivlehan
|
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James E. Kivlehan
Executive Vice President and Chief Financial Officer
|