XML 34 R24.htm IDEA: XBRL DOCUMENT v3.8.0.1
Loans And Allowance For Loan Losses (Tables)
 9 Months Ended
Sep. 30, 2017
Loans And Allowance For Loan Losses [Abstract]  
Summary Classification Of Held To Maturity Loan Portfolio
Major classifications within the Company’s held for investment loan portfolio at September 30, 2017 and December 31, 2016 are as follows:

(In thousands)
 
September 30, 2017
 
December 31, 2016
Commercial:
 
 
 
 
Business
 
$
4,834,037

 
$
4,776,365

Real estate – construction and land
 
921,609

 
791,236

Real estate – business
 
2,700,174

 
2,643,374

Personal Banking:
 
 
 
 
Real estate – personal
 
2,029,302

 
2,010,397

Consumer
 
2,113,438

 
1,990,801

Revolving home equity
 
391,308

 
413,634

Consumer credit card
 
752,379

 
776,465

Overdrafts
 
3,245

 
10,464

Total loans
 
$
13,745,492

 
$
13,412,736
Summary Of Activity In The Allowance For Loan Losses
A summary of the activity in the allowance for loan losses during the three and nine months ended September 30, 2017 and 2016, respectively, follows:
 
 
For the Three Months Ended September 30
 
For the Nine Months Ended September 30
(In thousands)
 
Commercial
Personal Banking

Total
 
Commercial
Personal Banking

Total
Balance at beginning of period
$
92,739

$
65,093

$
157,832

 
$
91,361

$
64,571

$
155,932

Provision
24

10,680

10,704

 
1,026

31,564

32,590

Deductions:
 
 
 
 
 
 
 
   Loans charged off
378

13,592

13,970

 
1,455

39,337

40,792

   Less recoveries on loans
651

2,615

3,266

 
2,104

7,998

10,102

Net loan charge-offs (recoveries)
(273
)
10,977

10,704

 
(649
)
31,339

30,690

Balance September 30, 2017
$
93,036

$
64,796

$
157,832

 
$
93,036

$
64,796

$
157,832

Balance at beginning of period
$
89,198

$
64,634

$
153,832

 
$
82,086

$
69,446

$
151,532

Provision
(1,411
)
8,674

7,263

 
4,309

21,609

25,918

Deductions:
 
 
 
 
 
 
 
   Loans charged off
291

11,872

12,163

 
2,465

35,633

38,098

   Less recoveries on loans
2,759

2,841

5,600

 
6,325

8,855

15,180

Net loan charge-offs (recoveries)
(2,468
)
9,031

6,563

 
(3,860
)
26,778

22,918

Balance September 30, 2016
$
90,255

$
64,277

$
154,532

 
$
90,255

$
64,277

$
154,532
Allowance For Loan Losses And Related Loan Balance Disaggregated On The Basis Of Impairment Methodology
The following table shows the balance in the allowance for loan losses and the related loan balance at September 30, 2017 and December 31, 2016, disaggregated on the basis of impairment methodology. Impaired loans evaluated under ASC 310-10-35 include loans on non-accrual status, which are individually evaluated for impairment, and other impaired loans discussed below, which are deemed to have similar risk characteristics and are collectively evaluated. All other loans are collectively evaluated for impairment under ASC 450-20.
 
Impaired Loans
 
All Other Loans

(In thousands)
Allowance for Loan Losses
Loans Outstanding
 
Allowance for Loan Losses
Loans Outstanding
September 30, 2017
 
 
 
 
 
Commercial
$
1,789

$
55,969

 
$
91,247

$
8,399,851

Personal Banking
1,322

23,571

 
63,474

5,266,101

Total
$
3,111

$
79,540

 
$
154,721

$
13,665,952

December 31, 2016
 
 
 
 
 
Commercial
$
1,817

$
44,795

 
$
89,544

$
8,166,180

Personal Banking
1,292

19,737

 
63,279

5,182,024

Total
$
3,109

$
64,532

 
$
152,823

$
13,348,204
Investment In Impaired Loans
The table below shows the Company’s investment in impaired loans at September 30, 2017 and December 31, 2016. These loans consist of all loans on non-accrual status and other restructured loans whose terms have been modified and classified as troubled debt restructurings. These restructured loans are performing in accordance with their modified terms, and because the Company believes it probable that all amounts due under the modified terms of the agreements will be collected, interest on these loans is being recognized on an accrual basis. They are discussed further in the "Troubled debt restructurings" section on page 14.
(In thousands)
 
Sept. 30, 2017
 
Dec. 31, 2016
Non-accrual loans
 
$
13,640

 
$
14,283

Restructured loans (accruing)
 
65,900

 
50,249

Total impaired loans
 
$
79,540

 
$
64,532
Additional Information About Impaired Loans Held
The following table provides additional information about impaired loans held by the Company at September 30, 2017 and December 31, 2016, segregated between loans for which an allowance for credit losses has been provided and loans for which no allowance has been provided.


(In thousands)
Recorded Investment
Unpaid Principal
Balance
 Related
Allowance
September 30, 2017
 
 
 
With no related allowance recorded:
 
 
 
Business
$
6,196

$
9,725

$
—

Real estate – business
587

587

—

Consumer
1,023

1,047

—

 
$
7,806

$
11,359

$
—

With an allowance recorded:
 
 
 
Business
$
35,708

$
36,219

$
1,141

Real estate – construction and land
1,367

1,595

37

Real estate – business
12,111

13,319

611

Real estate – personal
9,723

12,537

607

Consumer
5,232

5,271

52

Revolving home equity
578

578

5

Consumer credit card
7,015

7,015

658

 
$
71,734

$
76,534

$
3,111

Total
$
79,540

$
87,893

$
3,111

December 31, 2016
 
 
 
With no related allowance recorded:
 
 
 
Business
$
7,375

$
10,470

$
—

Real estate – construction and land
557

752

—

 
$
7,932

$
11,222

$
—

With an allowance recorded:
 
 
 
Business
$
29,924

$
31,795

$
1,318

Real estate – construction and land
69

72

3

Real estate – business
6,870

8,072

496

Real estate – personal
6,394

9,199

642

Consumer
5,281

5,281

57

Revolving home equity
584

584

1

Consumer credit card
7,478

7,478

592

 
$
56,600

$
62,481

$
3,109

Total
$
64,532

$
73,703

$
3,109
Total Average Impaired Loans
Total average impaired loans for the three and nine month periods ended September 30, 2017 and 2016, respectively, are shown in the table below.

(In thousands)
Commercial
Personal Banking
Total
Average Impaired Loans:
 
 
 
For the three months ended September 30, 2017
 
 
 
Non-accrual loans
$
8,938

$
4,238

$
13,176

Restructured loans (accruing)
42,930

18,691

61,621

Total
$
51,868

$
22,929

$
74,797

For the nine months ended September 30, 2017
 
 
 
Non-accrual loans
$
9,800

$
4,098

$
13,898

Restructured loans (accruing)
36,567

16,901

53,468

Total
$
46,367

$
20,999

$
67,366

For the three months ended September 30, 2016
 
 
 
Non-accrual loans
$
15,106

$
3,928

$
19,034

Restructured loans (accruing)
31,372

17,082

48,454

Total
$
46,478

$
21,010

$
67,488

For the nine months ended September 30, 2016
 
 
 
Non-accrual loans
$
19,387

$
4,336

$
23,723

Restructured loans (accruing)
29,117

17,359

46,476

Total
$
48,504

$
21,695

$
70,199
Interest Income Recognized On Impaired Loans
The table below shows interest income recognized during the three and nine month periods ended September 30, 2017 and 2016, respectively, for impaired loans held at the end of each period. This interest all relates to accruing restructured loans, as discussed in the "Troubled debt restructurings" section on page 14.
 
For the Three Months Ended September 30
 
For the Nine Months Ended September 30
(In thousands)
2017
2016
 
2017
2016
Interest income recognized on impaired loans:
 
 
 
 
 
Business
$
473

$
277

 
$
1,418

$
830

Real estate – construction and land
10

2

 
30

7

Real estate – business
118

42

 
354

126

Real estate – personal
104

39

 
311

118

Consumer
79

89

 
236

267

Revolving home equity
7

7

 
20

22

Consumer credit card
162

174

 
486

522

Total
$
953

$
630

 
$
2,855

$
1,892
Aging Information On Past Due And Nonaccrual Loans
The following table provides aging information on the Company’s past due and accruing loans, in addition to the balances of loans on non-accrual status, at September 30, 2017 and December 31, 2016.




(In thousands)
Current or Less Than 30 Days Past Due

30 – 89
Days Past Due
90 Days Past Due and Still Accruing
Non-accrual



Total
September 30, 2017
 
 
 
 
 
Commercial:
 
 
 
 
 
Business
$
4,823,779

$
2,630

$
807

$
6,821

$
4,834,037

Real estate – construction and land
917,128

3,913

35

533

921,609

Real estate – business
2,688,625

8,580

623

2,346

2,700,174

Personal Banking:
 
 
 
 
 
Real estate – personal
2,013,632

11,141

1,666

2,863

2,029,302

Consumer
2,082,203

27,450

2,708

1,077

2,113,438

Revolving home equity
388,346

1,530

1,432

—

391,308

Consumer credit card
734,215

8,971

9,193

—

752,379

Overdrafts
2,933

312

—

—

3,245

Total
$
13,650,861

$
64,527

$
16,464

$
13,640

$
13,745,492

December 31, 2016
 
 
 
 
 
Commercial:
 
 
 
 
 
Business
$
4,763,274

$
3,735

$
674

$
8,682

$
4,776,365

Real estate – construction and land
789,633

1,039

—

564

791,236

Real estate – business
2,639,586

2,154

—

1,634

2,643,374

Personal Banking:
 
 
 
 
 
Real estate – personal
1,995,724

9,162

2,108

3,403

2,010,397

Consumer
1,957,358

29,783

3,660

—

1,990,801

Revolving home equity
411,483

1,032

1,119

—

413,634

Consumer credit card
757,443

10,187

8,835

—

776,465

Overdrafts
10,014

450

—

—

10,464

Total
$
13,324,515

$
57,542

$
16,396

$
14,283

$
13,412,736
Credit Quality Of Commercial Loan Portfolio
The following table provides information about the credit quality of the Commercial loan portfolio, using the Company’s internal rating system as an indicator. The internal rating system is a series of grades reflecting management’s risk assessment, based on its analysis of the borrower’s financial condition. The “pass” category consists of a range of loan grades that reflect increasing, though still acceptable, risk. Movement of risk through the various grade levels in the “pass” category is monitored for early identification of credit deterioration. The “special mention” rating is applied to loans where the borrower exhibits negative financial trends due to borrower specific or systemic conditions that, if left uncorrected, threaten its capacity to meet its debt obligations. The borrower is believed to have sufficient financial flexibility to react to and resolve its negative financial situation. It is a transitional grade that is closely monitored for improvement or deterioration. The “substandard” rating is applied to loans where the borrower exhibits well-defined weaknesses that jeopardize its continued performance and are of a severity that the distinct possibility of default exists. Loans are placed on “non-accrual” when management does not expect to collect payments consistent with acceptable and agreed upon terms of repayment.
Commercial Loans


(In thousands)


Business
Real
 Estate-Construction
Real
Estate-
Business


Total
September 30, 2017
 
 
 
 
Pass
$
4,593,958

$
915,279

$
2,586,349

$
8,095,586

Special mention
123,549

2,527

57,319

183,395

Substandard
109,709

3,270

54,160

167,139

Non-accrual
6,821

533

2,346

9,700

Total
$
4,834,037

$
921,609

$
2,700,174

$
8,455,820

December 31, 2016
 
 
 
 
Pass
$
4,607,553

$
788,778

$
2,543,348

$
7,939,679

Special mention
116,642

722

45,479

162,843

Substandard
43,488

1,172

52,913

97,573

Non-accrual
8,682

564

1,634

10,880

Total
$
4,776,365

$
791,236

$
2,643,374

$
8,210,975
Summary Of Loans In The Personal Banking Portfolio Percentage Of Balances Outstanding
For the remainder of loans in the Personal Banking portfolio, the table below shows the percentage of balances outstanding at September 30, 2017 and December 31, 2016 by FICO score.
   Personal Banking Loans
 
% of Loan Category
 
Real Estate - Personal
Consumer
Revolving Home Equity
Consumer Credit Card
September 30, 2017
 
 
 
 
FICO score:
 
 
 
 
Under 600
1.4
%
3.3
%
.9
%
5.0
%
600 - 659
2.2

5.7

2.1

15.1

660 - 719
10.1

17.1

9.0

34.9

720 - 779
24.8

26.1

21.2

25.9

780 and over
61.5

47.8

66.8

19.1

Total
100.0
%
100.0
%
100.0
%
100.0
%
December 31, 2016
 
 
 
 
FICO score:
 
 
 
 
Under 600
1.3
%
3.4
%
1.0
%
4.9
%
600 - 659
2.6

6.4

1.8

15.5

660 - 719
10.4

19.7

9.7

34.9

720 - 779
25.4

26.3

21.1

25.1

780 and over
60.3

44.2

66.4

19.6

Total
100.0
%
100.0
%
100.0
%
100.0
%
Outstanding Balance Of Loans Classified As Troubled Debt Restructurings
The following table shows the outstanding balances of loans classified as troubled debt restructurings at September 30, 2017, in addition to the outstanding balances of these restructured loans which the Company considers to have been in default at any time during the past twelve months. For purposes of this disclosure, the Company considers "default" to mean 90 days or more past due as to interest or principal.
(In thousands)
September 30, 2017
Balance 90 days past due at any time during previous 12 months
Commercial:
 
 
Business
$
40,608

$
—

Real estate - construction and land
1,304

—

Real estate - business
10,353

623

Personal Banking:
 
 
Real estate - personal
7,996

397

Consumer
5,235

32

Revolving home equity
578

42

Consumer credit card
7,015

800

Total restructured loans
$
73,089

$
1,894