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FAIR VALUE MEASUREMENT AND DISCLOSURE (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	Fair Value				Readily Available Market Prices (Level 1)				Observable Market Data (Level 2)				Company Determined Fair Value (Level 3)
June 30, 2017
Financial assets:
Loans held for sale	$	10,784			$	—			$	10,784			$	—
AFS securities:
Obligations of states and political subdivisions	7,392				—				7,392				—
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises	521,676				—				521,676				—
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises	274,872				—				274,872				—
Subordinated corporate bonds	5,676				—				5,676				—
Equity securities	1,242				—				1,242				—
Customer loan swaps	3,615				—				3,615				—
Fixed-rate interest rate lock commitments	431				—				431				—
Forward delivery commitments	304				—				304				—
Financial liabilities:
Junior subordinated debt interest rate swaps	8,312				—				8,312				—
FHLBB advance interest rate swaps	153				—				153				—
Customer loan swaps	3,615				—				3,615				—
Fixed-rate interest rate lock commitments	21				—				21				—
Forward delivery commitments	7				—				7				—
December 31, 2016
Financial assets:
Loans held for sale	$	14,836			$	—			$	14,836			$	—
AFS securities:
Obligations of states and political subdivisions	9,001				—				9,001				—
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises	480,622				—				480,622				—
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises	283,890				—				283,890				—
Subordinated corporate bonds	5,613				—				5,613				—
Equity securities	741				—				741				—
Customer loan swaps	1,945				—				1,945				—
Fixed-rate interest rate lock commitments	202				—				202				—
Forward delivery commitments	587				—				587				—
Financial liabilities:
Junior subordinated debt interest rate swaps	8,372				—				8,372				—
FHLBB advance interest rate swaps	389				—				389				—
Customer loan swaps	1,945				—				1,945				—
Fixed-rate interest rate lock commitments	15				—				15				—
Forward delivery commitments	309				—				309				—

Summary of Assets Measured at Fair Value on Non Recurring Basis

The table below highlights financial and non-financial assets measured and recorded at fair value on a non-recurring basis as of June 30, 2017 and December 31, 2016.

	Fair Value				Readily Available Market Prices (Level 1)				Observable Market Data (Level 2)				Company Determined Fair Value (Level 3)
June 30, 2017
Financial assets:
Collateral-dependent impaired loans	$	176			$	—			$	—			$	176
MSRs(1)	302				—				—				302
Non-financial assets:
OREO	341				—				—				341
December 31, 2016
Financial assets:
Collateral-dependent impaired loans	$	500			$	—			$	—			$	500
MSRs(1)	1,090				—				—				1,090
Non-financial assets:
OREO	922				—				—				922

(1) Represents MSRs deemed to be impaired and a valuation allowance was established to carry at fair value.

Valuation Methodology and Unobservable Inputs for Level Three Assets Measured at Fair Value on Non Recurring Basis

The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at June 30, 2017 and December 31, 2016:

	Fair Value				Valuation Methodology		Unobservable input		Discount Range (Weighted-Average)
June 30, 2017
Collateral-dependent impaired loans:
Partially charged-off	$	176			Market approach appraisal of collateral		Management adjustment of appraisal		0%	(0%)
							Estimated selling costs		0 - 10%	(7%)
MSR	302				Discounted cash flow		Prepayment rate		14%	(14%)
							Discount rate		7%	(7%)
OREO	341				Market approach appraisal of collateral		Management adjustment of appraisal		0%	(0%)
							Estimated selling cost		10%	(10%)
December 31, 2016
Collateral-dependent impaired loans:
Partially charged-off	$	166			Market approach appraisal of collateral		Management adjustment of appraisal		0%	(0%)
							Estimated selling costs		0 - 10%	(5%)
Specifically reserved	344				Market approach appraisal of collateral		Management adjustment of appraisal		0 - 50%	(13%)
							Estimated selling costs		10 - 28%	(12%)
MSR	1,090				Discounted cash flow		Prepayment rate		15%	(15%)
							Discount rate		8%	(8%)
OREO	922				Market approach appraisal of collateral		Management adjustment of appraisal		0 - 73%	(7%)
							Estimated selling costs		10%	(10%)

Carrying Amounts and Estimated Fair Value for Financial Instrument Assets and Liabilities

The following table presents the carrying amounts and estimated fair value for financial instrument assets and liabilities measured at June 30, 2017: 

	Carrying Amount				Fair Value				Readily Available Market Prices (Level 1)				Observable Market Prices (Level 2)				Company Determined Market Prices (Level 3)
Financial assets:
Cash and due from banks	$	93,033			$	93,033			$	93,033			$	—			$	—
AFS securities	810,858				810,858				—				810,858				—
HTM securities	94,340				95,008				—				95,008				—
Loans held for sale	10,784				10,784				—				10,784				—
Residential real estate loans(1)	827,096				836,195				—				—				836,195
Commercial real estate loans(1)	1,125,908				1,089,273				—				—				1,089,273
Commercial loans(1)(2)	417,029				415,614				—				—				415,614
Home equity loans(1)	324,989				322,917				—				—				322,917
Consumer loans(1)	16,853				16,489				—				—				16,489
MSRs(3)	1,093				1,794				—				—				1,794
Interest receivable	9,212				9,212				—				9,212				—
Customer loan swaps	3,615				3,615				—				3,615				—
Fixed-rate interest rate lock commitments	431				431				—				431				—
Forward delivery commitments	304				304				—				304				—
Financial liabilities:
Deposits	$	2,940,866			$	2,938,966			$	—			$	2,938,966			$	—
Short-term borrowings	572,073				571,991				—				571,991				—
Long-term borrowings	10,756				10,869				—				10,869				—
Subordinated debentures	58,833				42,090				—				42,090				—
Interest payable	667				667				—				667				—
Junior subordinated debt interest rate swaps	8,312				8,312				—				8,312				—
FHLBB advance interest rate swaps	153				153				—				153				—
Customer loan swaps	3,615				3,615				—				3,615				—
Fixed-rate interest rate lock commitments	21				21				—				21				—
Forward delivery commitments	7				7				—				7				—

(1) The presented carrying amount is net of the allocated ALL.

(2) Includes the HPFC loan portfolio.

(3) Reported fair value represents all MSRs currently being serviced by the Company.

The following table presents the carrying amounts and estimated fair value for financial instrument assets and liabilities measured at December 31, 2016:

	Carrying Amount				Fair Value				Readily Available Market Prices (Level 1)				Observable Market Prices (Level 2)				Company Determined Market Prices (Level 3)
Financial assets:
Cash and due from banks	$	87,707			$	87,707			$	87,707			$	—			$	—
AFS securities	779,867				779,867				—				779,867				—
HTM securities	94,609				94,596				—				94,596				—
Loans held for sale	14,836				14,836				—				14,836				—
Residential real estate loans(1)	798,334				800,122				—				—				800,122
Commercial real estate loans(1)	1,038,626				1,006,249				—				—				1,006,249
Commercial loans(1)(2)	389,624				391,493				—				—				391,493
Home equity loans(1)	327,713				327,292				—				—				327,292
Consumer loans(1)	17,151				16,845				—				—				16,845
MSRs(3)	1,210				1,701				—				—				1,701
Interest receivable	8,654				8,654				—				8,654				—
Customer loan swaps	1,945				1,945				—				1,945				—
Fixed-rate interest rate lock commitments	202				202				—				202				—
Forward delivery commitments	587				587				—				587				—
Financial liabilities:
Deposits	$	2,828,529			$	2,826,484			$	—			$	2,826,484			$	—
Short-term borrowings	530,129				530,435				—				530,435				—
Long-term borrowings	10,791				10,836				—				10,836				—
Subordinated debentures	58,755				41,660				—				41,660				—
Interest payable	534				534				—				534				—
Junior subordinated debt interest rate swaps	8,372				8,372				—				8,372				—
FHLBB advance interest rate swaps	389				389				—				389				—
Customer loan swaps	1,945				1,945				—				1,945				—
Fixed-rate interest rate lock commitments	15				15				—				15				—
Forward delivery commitments	309				309				—				309				—

(1) The presented carrying amount is net of the allocated ALL.

(2) Includes the HPFC loan portfolio.

(3) Reported fair value represents all MSRs currently being serviced by the Company.

X

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

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Tabular disclosure of the inputs and valuation techniques used to measure fair value, and a discussion of changes in valuation techniques and related inputs, if any, used to measure similar assets in prior periods (non-recurring basis) by class of asset or liability.

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Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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