Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2020

Financing Receivable, Troubled Debt Restructuring [Line Items]

Financing Receivables by Evaluation Method

The balances of loans as of June 30, 2020 by portfolio classification and evaluation method are summarized as follows: 

(Dollars in thousands)	Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Gross Loans
Commercial real estate	$	14,310	$	1,457,276	$	1,471,586
Commercial and industrial	9,513		444,942		454,455
Commercial construction	8,294		395,714		404,008
SBA PPP loans	—		505,557		505,557
Residential mortgages	888		260,898		261,786
Home equity	473		87,684		88,157
Consumer	39		9,135		9,174
Total gross loans	$	33,517	$	3,161,206	$	3,194,723

The balances of loans as of December 31, 2019 by portfolio classification and evaluation method are summarized as follows:

(Dollars in thousands)	Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Gross Loans
Commercial real estate	$	17,515	$	1,376,664	$	1,394,179
Commercial and industrial	9,332		491,895		501,227
Commercial construction	3,347		314,130		317,477
Residential mortgages	1,229		246,144		247,373
Home equity	411		97,841		98,252
Consumer	44		10,010		10,054
Total gross loans	$	31,878	$	2,536,684	$	2,568,562

Financing Receivable Credit Quality Indicators

The following tables present the Company's credit risk profile for each portfolio classification by internally assigned adverse risk rating category as of the periods indicated:

	June 30, 2020
	Adversely Classified						Not Adversely
(Dollars in thousands)	Substandard		Doubtful		Loss		Classified		Gross Loans
Commercial real estate	$	18,311	$	—	$	—	$	1,453,275	$	1,471,586
Commercial and industrial	9,872		2,452		—		442,131		454,455
Commercial construction	8,798		—		—		395,210		404,008
SBA PPP loans	—		—		—		505,557		505,557
Residential mortgages	983		—		—		260,803		261,786
Home equity	556		—		—		87,601		88,157
Consumer	61		—		—		9,113		9,174
Total gross loans	$	38,581	$	2,452	$	—	$	3,153,690	$	3,194,723

	December 31, 2019
	Adversely Classified						Not Adversely
(Dollars in thousands)	Substandard		Doubtful		Loss		Classified		Gross Loans
Commercial real estate	$	16,664	$	—	$	—	$	1,377,515	$	1,394,179
Commercial and industrial	10,900		2,370		—		487,957		501,227
Commercial construction	4,836		—		—		312,641		317,477
Residential mortgages	1,825		—		—		245,548		247,373
Home equity	455		—		—		97,797		98,252
Consumer	69		3		—		9,982		10,054
Total gross loans	$	34,749	$	2,373	$	—	$	2,531,440	$	2,568,562

Past Due Financing Receivables

The following tables present an age analysis of past due loans by portfolio classification as of the dates indicated:

	Balance at June 30, 2020
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Past Due 90 days or more		Total Past Due Loans		Current Loans		Gross Loans		Non-accrual Loans
Commercial real estate	$	3,375	$	2,282	$	4,382	$	10,039	$	1,461,547	$	1,471,586	$	8,789
Commercial and industrial	345		602		1,074		2,021		452,434		454,455		5,549
Commercial construction	—		—		5,295		5,295		398,713		404,008		5,801
SBA PPP loans	—		—		—		—		505,557		505,557		—
Residential mortgages	674		—		—		674		261,112		261,786		473
Home equity	—		—		254		254		87,903		88,157		705
Consumer	20		15		—		35		9,139		9,174		18
Total gross loans	$	4,414	$	2,899	$	11,005	$	18,318	$	3,176,405	$	3,194,723	$	21,335

	Balance at December 31, 2019
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		Past Due 90 days or more		Total Past Due Loans		Current Loans		Gross Loans		Non-accrual Loans
Commercial real estate	$	1,469	$	3,914	$	4,158	$	9,541	$	1,384,638	$	1,394,179	$	8,280
Commercial and industrial	576		1,034		265		1,875		499,352		501,227		3,285
Commercial construction	576		3,325		1,735		5,636		311,841		317,477		1,735
Residential mortgages	700		283		623		1,606		245,767		247,373		411
Home equity	645		—		169		814		97,438		98,252		1,040
Consumer	12		—		6		18		10,036		10,054		20
Total gross loans	$	3,978	$	8,556	$	6,956	$	19,490	$	2,549,072	$	2,568,562	$	14,771

Impaired Financing Receivables

The following tables set forth the recorded investment in impaired loans and the related specific allowance allocated by portfolio classification as of the dates indicated:

	Balance at June 30, 2020
(Dollars in thousands)	Unpaid contractual principal balance		Total recorded investment in impaired loans		Recorded investment with no allowance		Recorded investment with allowance		Related specific allowance
Commercial real estate	$	15,410	$	14,310	$	13,816	$	494	$	37
Commercial and industrial	11,557		9,513		5,533		3,980		2,351
Commercial construction	8,333		8,294		6,263		2,031		1,440
SBA PPP loans	—		—		—		—		—
Residential mortgages	996		888		888		—		—
Home equity	657		473		473		—		—
Consumer	40		39		—		39		39
Total	$	36,993	$	33,517	$	26,973	$	6,544	$	3,867

	Balance at December 31, 2019
(Dollars in thousands)	Unpaid contractual principal  balance		Total recorded investment in impaired loans		Recorded investment with no allowance		Recorded investment with allowance		Related specific allowance
Commercial real estate	$	18,537	$	17,515	$	17,129	$	386	$	31
Commercial and industrial	11,455		9,332		7,405		1,927		974
Commercial construction	3,359		3,347		3,347		—		—
Residential mortgages	1,331		1,229		1,229		—		—
Home equity	607		411		411		—		—
Consumer	44		44		—		44		44
Total	$	35,333	$	31,878	$	29,521	$	2,357	$	1,049

The following table presents the average recorded investment in impaired loans by portfolio classification and the related interest recognized during the three months indicated:

	Three months ended June 30, 2020					Three months ended June 30, 2019
(Dollars in thousands)	Average recorded investment		Interest income recognized			Average recorded investment		Interest income recognized
Commercial real estate	$	14,289	$	70		$	16,425	$	122
Commercial and industrial	8,664		40			11,474		94
Commercial construction	7,674		5			1,738		27
SBA PPP loans	—		—			—		—
Residential mortgages	898		2			939		17
Home equity	419		(1		)	436		—
Consumer	41		1			24		(1		)
Total	$	31,985	$	117		$	31,036	$	259

The following table presents the average recorded investment in impaired loans by portfolio classification and the related interest recognized during the six months indicated:

	Six months ended June 30, 2020					Six months ended June 30, 2019
(Dollars in thousands)	Average recorded investment		Interest income recognized			Average recorded investment		Interest income recognized
Commercial real estate	$	14,781	$	142		$	16,114	$	242
Commercial and industrial	8,236		68			11,696		209
Commercial construction	6,215		5			1,736		52
SBA PPP loans	—		—			—		—
Residential mortgages	1,059		4			914		18
Home equity	410		(1		)	472		—
Consumer	41		1			21		(1		)
Total	$	30,742	$	219		$	30,953	$	520

Troubled Debt Restructurings on Financing Receivables

Payment defaults, during the three month periods ended June 30, 2020 on loans modified as TDRs within the preceding twelve months are detailed below:

	Three months ended
	June 30, 2020
(Dollars in thousands)	Number of TDRs that defaulted	Post- modification outstanding recorded investment
Commercial real estate	—	$	—
Commercial and industrial	2	64
Commercial construction	—	—
SBA PPP loans	—	—
Residential mortgages	—	—
Home equity loans and lines	—	—
Consumer	—	—
Total	2	$	64

There were no payment defaults during the three month period ended June 30, 2019.

Loans modified as TDRs during the six month periods ended June 30, 2020 and June 30, 2019 are detailed below:

	Six months ended
	June 30, 2020					June 30, 2019
(Dollars in thousands)	Number of restructurings	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Number of restructurings	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Commercial real estate	—	$	—	$	—	3	$	2,047	$	1,626
Commercial and industrial	1	474		402		7	406		299
Commercial construction	6	4,754		4,825		—	—		—
SBA PPP loans	—	—		—		—	—		—
Residential mortgages	—	—		—		1	315		312
Home equity	—	—		—		—	—		—
Consumer	1	1		—		1	6		6
Total	8	$	5,229	$	5,227	12	$	2,774	$	2,243

Payment defaults, during the six month periods ended June 30, 2020 and June 30, 2019 on loans modified as TDRs within the preceding twelve months are detailed below:

	Six months ended
	June 30, 2020			June 30, 2019
(Dollars in thousands)	Number of TDRs that defaulted	Post- modification outstanding recorded investment		Number of TDRs that defaulted	Post- modification outstanding recorded investment
Commercial real estate	—	$	—	—	$	—
Commercial and industrial	2	64		2	172
Commercial construction	2	1,743		—	—
SBA PPP loans	—	—		—	—
Residential mortgages	—	—		—	—
Home equity	—	—		—	—
Consumer	—	—		—	—
Total	4	$	1,807	2	$	172

The following table sets forth the post modification balances of TDRs listed by type of modification for TDRs that occurred during the periods indicated:

	Six months ended
	June 30, 2020			June 30, 2019
(Dollars in thousands)	Number of restructurings	Amount		Number of restructurings	Amount
Extended maturity date	2	$	1,743	—	$	—
Temporary payment reduction and payment re-amortization of remaining principal over extended term	2	975		7	89
Temporary interest only payment plan	—	—		2	395
Forbearance of post default rights	4	2,509		—	—
Other payment concessions	—	—		3	1,759
Total	8	$	5,227	12	$	2,243
Amount of specific reserves included in the allowance for loan losses associated with TDRs listed above		$	1,320		$	89

Loans modified as TDRs during the three month periods ended June 30, 2020 and June 30, 2019 are detailed below:

	Three months ended
	June 30, 2020					June 30, 2019
(Dollars in thousands)	Number of restructurings	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Number of restructurings	Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Commercial real estate	—	$	—	$	—	2	$	1,626	$	1,626
Commercial and industrial	—	—		—		2	212		216
Commercial construction	2	1,314		1,518		—	—		—
SBA PPP loans	—	—		—		—	—		—
Residential mortgages	—	—		—		—	—		—
Home equity loans and lines	—	—		—		—	—		—
Consumer	—	—		—		1	6		6
Total	2	$	1,314	$	1,518	5	$	1,844	$	1,848

Allowance for Credit Losses on Financing Receivables

Changes in the allowance for loan losses by portfolio classification for the three months ended June 30, 2020 are presented below: 

(Dollars in thousands)	Cmml Real Estate		Cmml and Industrial			Cmml Constr		Resid. Mortgage		Home Equity			Consumer			Total
Beginning Balance at March 31, 2020	$	20,861	$	10,235		$	6,161	$	1,598	$	636		$	273		$	39,764
Provision	1,616		(345		)	1,337		130		(26		)	(37		)	2,675
Recoveries	—		67			—		—		3			15			85
Less: Charge offs	—		194			—		—		—			6			200
Ending Balance at June 30, 2020	$	22,477	$	9,763		$	7,498	$	1,728	$	613		$	245		$	42,324

Changes in the allowance for loan losses by portfolio classification for the six months ended June 30, 2020 are presented below: 

(Dollars in thousands)	Cmml Real Estate		Cmml and Industrial		Cmml Constr		Resid. Mortgage		Home Equity		Consumer			Total
Beginning Balance at December 31, 2019	$	18,338	$	9,129	$	4,149	$	1,195	$	536	$	267		$	33,614
Provision	4,139		759		3,349		533		71		(29		)	8,822
Recoveries	—		174		—		—		6		25			205
Less: Charge offs	—		299		—		—		—		18			317
Ending Balance at June 30, 2020	$	22,477	$	9,763	$	7,498	$	1,728	$	613	$	245		$	42,324
Ending allowance balance:
Allocated to loans individually evaluated for impairment	$	37	$	2,351	$	1,440	$	—	$	—	$	39		$	3,867
Allocated to loans collectively evaluated for impairment	$	22,440	$	7,412	$	6,058	$	1,728	$	613	$	206		$	38,457

Changes in the allowance for loan losses by portfolio classification for the three months ended June 30, 2019 are presented below: 

(Dollars in thousands)	Cmml Real Estate		Cmml and Industrial		Cmml Constr		Resid. Mortgage		Home Equity			Consumer		Total
Beginning Balance at March 31, 2019	$	17,826	$	10,403	$	3,452	$	1,184	$	627		$	237	$	33,729
Provision	2		647		265		3		(1		)	39		955
Recoveries	—		140		—		—		3			8		151
Less: Charge offs	—		459		—		—		—			25		484
Ending Balance at June 30, 2019	$	17,828	$	10,731	$	3,717	$	1,187	$	629		$	259	$	34,351

Changes in the allowance for loan losses by portfolio classification for the six months ended June 30, 2019 are presented below: 

(Dollars in thousands)	Cmml Real Estate			Cmml and Industrial		Cmml Constr		Resid. Mortgage		Home Equity			Consumer		Total
Beginning Balance at December 31, 2018	$	18,014		$	10,493	$	3,307	$	1,160	$	629		$	246	$	33,849
Provision	(186		)	241		410		27		(5		)	68		555
Recoveries	—			456		—		—		5			13		474
Less: Charge offs	—			459		—		—		—			68		527
Ending Balance at June 30, 2019	$	17,828		$	10,731	$	3,717	$	1,187	$	629		$	259	$	34,351
Ending allowance balance:
Allocated to loans individually evaluated for impairment	$	5		$	2,307	$	—	$	5	$	—		$	32	$	2,349
Allocated to loans collectively evaluated for impairment	$	17,823		$	8,424	$	3,717	$	1,182	$	629		$	227	$	32,002