Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2020

Receivables [Abstract]

Schedule of Loans Credit Quality Indicators

The following table presents loan balances by year of origination and internally assigned risk rating for our portfolio segments as of June 30, 2020:

	Risk Rating
(dollars in thousands)	2020		2019		2018		2017		2016		2015 and Prior		Revolving		Revolving-Term		Total
Commercial Real Estate
Pass	$	231,670	$	468,786	$	443,243	$	327,871	$	401,126	$	769,224	$	48,527	—		$	2,690,447
Special Mention	—		8,741		187		13,182		8,172		50,717		2,350		—		83,349
Substandard	—		—		938		9,098		22,059		49,912		2,890		—		84,897
Doubtful	—		—		—		—		471		2,859		80		—		3,410
Total Commercial Real Estate	231,670		477,527		444,368		350,151		431,828		872,712		53,847		—		2,862,103
Commercial and Industrial
Pass	350,890		224,067		162,559		88,479		56,286		301,155		383,176		44		1,566,656
Special Mention	39		14,104		3,722		917		6,977		10,302		42,199		—		78,260
Substandard	75		5,417		2,799		14,979		75		11,354		3,061		—		37,760
Doubtful	—		—		—		—		—		—		—		—		—
Total Commercial and Industrial	351,004		243,588		169,080		104,375		63,338		322,811		428,436		44		1,682,676
Commercial Construction
Pass	67,685		206,187		107,927		17,499		17,335		10,533		11,844		—		439,010
Special Mention	—		—		3,581		—		—		5,076		91		—		8,748
Substandard	—		—		—		1,742		—		3,598		—		—		5,340
Doubtful	—		—		—		—		—		—		—		—		—
Total Commercial Construction	67,685		206,187		111,508		19,241		17,335		19,207		11,935		—		453,098
Business Banking
Pass	289,837		171,903		142,912		99,586		88,874		310,932		110,498		1,247		1,215,789
Special Mention	—		100		1,341		1,742		1,144		7,071		733		69		12,200
Substandard	—		627		3,115		4,616		4,036		27,566		680		206		40,846
Doubtful	—		—		—		—		—		—		—		—		—
Total Business Banking	289,837		172,630		147,368		105,944		94,054		345,569		111,911		1,522		1,268,835
Consumer Real Estate
Pass	59,273		143,091		81,972		79,203		87,809		309,636		421,987		7,123		1,190,094
Special Mention	—		—		—		—		798		300		—		—		1,098
Substandard	—		188		299		812		973		8,447		202		—		10,921
Doubtful	—		—		—		—		—		—		—		—		—
Total Consumer Real Estate	59,273		143,279		82,271		80,015		89,580		318,383		422,189		7,123		1,202,113
Other consumer
Pass	4,720		16,987		9,223		5,323		4,256		1,561		30,377		268		72,715
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		559		145		117		691		4,839		408		259		7,018
Doubtful	—		—		—		—		—		—		—		—		—
Total Other Consumer	4,720		17,546		9,368		5,440		4,947		6,400		30,785		527		79,733
Total Loan Balance	$	1,004,189	$	1,260,757	$	963,963	$	665,166	$	701,082	$	1,885,082	$	1,059,103	$	9,216	$	7,548,558

The following table presents loan balances by year of origination and performing and nonperforming status for our portfolio segments as of June 30, 2020:

(dollars in thousands)	2020		2019		2018		2017		2016		2015 and Prior		Revolving		Revolving-Term		Total
Commercial Real Estate
Performing	$	231,670	$	477,527	$	444,368	$	350,151	$	411,792	$	839,942	$	50,877	$	—	$	2,806,327
Nonperforming	—		—		—		—		20,036		32,770		2,970		—		55,776
Total Commercial Real Estate	231,670		477,527		444,368		350,151		431,828		872,712		53,847		—		2,862,103
Commercial and Industrial
Performing	351,004		243,588		168,814		104,375		63,338		322,811		426,076		44		1,680,050
Nonperforming	—		—		266		—		—		—		2,360		—		2,626
Total Commercial and Industrial	351,004		243,588		169,080		104,375		63,338		322,811		428,436		44		1,682,676
Commercial Construction
Performing	67,685		206,187		111,508		18,200		17,335		18,744		11,935		—		451,594
Nonperforming	—		—		—		1,041		—		463		—		—		1,504
Total Commercial Construction	67,685		206,187		111,508		19,241		17,335		19,207		11,935		—		453,098
Business Banking
Performing	289,837		172,290		145,563		104,549		92,708		334,316		111,696		1,401		1,252,360
Nonperforming	—		340		1,805		1,395		1,346		11,253		215		121		16,475
Total Business Banking	289,837		172,630		147,368		105,944		94,054		345,569		111,911		1,522		1,268,835
Consumer Real Estate
Performing	59,273		143,174		81,327		78,888		88,576		309,984		421,895		7,123		1,190,240
Nonperforming	—		105		944		1,127		1,004		8,399		294		—		11,873
Total Consumer Real Estate	59,273		143,279		82,271		80,015		89,580		318,383		422,189		7,123		1,202,113
Other Consumer
Performing	4,720		17,069		9,368		5,338		4,664		5,630		30,594		491		77,874
Nonperforming	—		477		—		102		283		770		191		36		1,859
Total Other Consumer	4,720		17,546		9,368		5,440		4,947		6,400		30,785		527		79,733
Performing	1,004,189		1,259,835		960,948		661,501		678,413		1,831,427		1,053,073		9,059		7,458,445
Nonperforming	—		922		3,015		3,665		22,668		53,655		6,030		157		90,113
Total Loan Balance	$	1,004,189	$	1,260,757	$	963,963	$	665,166	$	701,082	$	1,885,082	$	1,059,103	$	9,216	$	7,548,558

The following table presents collateral-dependent loans by class of loan:

	June 30, 2020
	Type of Collateral
(dollars in thousands)	Real Estate	Blanket Lien	Investment/Cash	Other
Commercial real estate	$55,447	$40	$—	$—
Commercial and industrial	2,762	3,694	—	—
Commercial construction	5,215	—	—	—
Business banking	2,906	896	—	689
Consumer real estate	398	—	—	—
Total	$66,728	$4,630	$—	$689

The following table presents the recorded investment in commercial loan classes by internally assigned risk ratings as of December 31, 2019:

	December 31, 2019
(dollars in thousands)	Commercial Real Estate		% of Total		Commercial and Industrial		% of Total		Commercial Construction		% of Total		Total		% of Total
Pass	$	3,270,437	95.7	%	$	1,636,314	93.4	%	$	347,324	92.5	%	$	5,254,076	95.3	%
Special mention	57,285		1.7	%	36,484		1.7	%	10,109		2.7	%	103,878		1.9	%
Substandard	86,772		2.5	%	47,980		4.9	%	17,899		4.8	%	152,651		2.8	%
Doubtful	2,023		—	%	55		—	%	133		—	%	2,191		—	%
Total	$	3,416,518	100.0	%	$	1,720,833	100.0	%	$	375,445	100.0	%	$	5,512,796	100.0	%

Schedule of Age Analysis of Past Due Loans Segregated by Class of Loans

The following tables present the age analysis of past due loans segregated by class of loans as of the dates presented:

	June 30, 2020(2)
(dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days Past Due(1)		Non - performing		Total Past Due Loans		Total Loans
Commercial real estate	$	2,806,327	$	—	$	—	$	—	$	55,776	$	55,776	$	2,862,103
Commercial and industrial	1,678,314		—		230		1,506		2,626		4,362		1,682,676
Commercial construction	451,594		—		—		—		1,504		1,504		453,098
Business banking	1,248,611		839		2,910		—		16,475		20,224		1,268,835
Consumer real estate	1,184,530		1,429		3,709		572		11,873		17,583		1,202,113
Other consumer	77,420		201		131		122		1,859		2,313		79,733
Total	$	7,446,796	$	2,469	$	6,980	$	2,200	$	90,113	$	101,762	$	7,548,558

⁽¹⁾ Represents acquired loans that were recorded at fair value at the acquisition date and remain performing at June 30, 2020.

⁽²⁾ We had 2,360 loans that were modified totaling $1.4 billion under the CARES Act at June 30, 2020. These customers were not considered past due as a result of their delayed payments. Upon exiting the loan modification deferral program, the measurement of loan delinquency will resume where it left off upon entry into the program. Due to the modification program, this delinquency table may not accurately reflect the credit risk associated with these loans.

	December 31, 2019
(dollars in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days Past Due(1)		Non - performing		Total Past Due Loans		Total Loans
Commercial real estate	$	3,025,505	$	7,749	$	71	$	911	$	25,356	$	34,087	$	3,059,592
Commercial and industrial	1,466,460		126		1,589		1,443		10,911		14,069		1,480,529
Commercial construction	367,204		956		1,163		—		737		2,856		370,060
Business banking	830,735		5,093		1,099		—		9,863		16,055		846,790
Consumer real estate	1,283,591		2,620		1,758		1,175		6,063		11,616		1,295,207
Other consumer	81,866		1,448		305		228		1,127		3,108		84,974
Total	$	7,055,361	$	17,992	$	5,985	$	3,757	$	54,057	$	81,791	$	7,137,152

⁽¹⁾Represents acquired loans that were recorded at fair value at the acquisition date and remain performing at December 31, 2019.

Schedule of Loans on Nonaccrual Status and Loans Past Due 90 days Or More

The following table is a summary of nonperforming assets as of the dates presented:

	Nonperforming Assets
(dollars in thousands)	June 30, 2020			December 31, 2019
Nonperforming Assets
Nonaccrual loans		$	58,358		$	45,145
Nonaccrual TDRs		31,755			8,912
Total Nonaccrual Loans		90,113			54,057
OREO		2,740			3,525
Total Nonperforming Assets		$	92,853		$	57,582

The following table presents loans on nonaccrual status and loans past due 90 days or more and still accruing by class of loan:

								June 30, 2020
	June 30, 2020							For the three months ended	For the six months ended
(dollars in thousands)	Beginning of Period Nonaccrual		End of Period Nonaccrual		Nonaccrual With No Related Allowance	Past Due 90+ Days Still Accruing		Interest Income Recognized on Nonaccrual(1)	Interest Income Recognized on Nonaccrual(1)
Commercial real estate	$	25,356	$	55,776	$14,889	$	—	$3	$12
Commercial and industrial	10,911		2,626		—	1,506		9	23
Commercial construction	737		1,504		1,218	—		—	—
Business banking	9,863		16,475		3,002	—		57	104
Consumer real estate	6,063		11,873		398	572		75	170
Other consumer	1,127		1,859		—	122		1	3
Total	$	54,057	$	90,113	$19,507	$	2,200	$145	$312

⁽¹⁾ Represents only cash payments received and applied to interest on nonaccrual loans.

Schedule of Allowance for Credit Loss

The following table presents activity in the ACL for the three and six months ended June 30, 2020:

	Three Months Ended June 30, 2020
(dollars in thousands)	Commercial Real Estate		Commercial and Industrial		Commercial Construction		Business Banking		Consumer Real Estate		Other Consumer		Total Loans
Allowance for credit losses on loans:
Balance at beginning of period	$	42,611	$	19,870	$	6,606	$	13,706	$	11,200	$	2,857	$	96,850
Provision for credit losses on loans	20,681		60,906		2,249		918		400		677		85,831
Charge-offs	(5,600)		(61,616)		—		(260)		(37)		(790)		(68,303)
Recoveries	38		4		19		40		22		108		231
Net (Charge-offs)/Recoveries	(5,562)		(61,612)		19		(220)		(15)		(682)		(68,072)
Balance at End of Period	$	57,730	$	19,164	$	8,874	$	14,404	$	11,585	$	2,852	$	114,609

	Six Months Ended June 30, 2020
(dollars in thousands)	Commercial Real Estate		Commercial and Industrial		Commercial Construction		Business Banking(1)		Consumer Real Estate		Other Consumer		Total Loans
Allowance for credit losses on loans:
Balance at beginning of period	$	30,577	$	15,681	$	7,900	$	—	$	6,337	$	1,729	$	62,224
Impact of CECL adoption	4,810		7,853		(3,376)		12,898		4,525		642		27,352
Provision for credit losses on loans	28,345		67,104		4,329		2,126		829		1,529		104,262
Charge-offs	(6,042)		(71,496)		—		(721)		(218)		(1,272)		(79,749)
Recoveries	40		22		21		101		112		224		520
Net (Charge-offs)/Recoveries	(6,002)		(71,474)		21		(620)		(106)		(1,048)		(79,229)
Balance at End of Period	$	57,730	$	19,164	$	8,874	$	14,404	$	11,585	$	2,852	$	114,609

(1) In connection with our adoption of ASU 2016-13, we made changes to our loan portfolio segments to align with the methodology applied in determining the allowance under CECL. Our new segmentation breaks out business banking loans from our other loan segments: CRE, C&I, commercial construction, consumer real estate and other consumer. The business banking allowance balance at the beginning of period is included in the other segments and reclassified to business banking through the impact of CECL adoption line.

Schedule of Recorded Investment in Consumer Loan Classes by Performing and Nonperforming Status

The following table presents the recorded investment in consumer loan classes by performing and nonperforming status as of December 31, 2019:

	December 31, 2019
(dollars in thousands)	Residential Mortgage		% of Total		Home Equity		% of Total		Installment and Other Consumer		% of Total		Consumer Construction		% of Total		Total		% of Total
Performing	$	991,066	99.2	%	$	535,709	99.5	%	$	78,993	99.9	%	$	8,390	100.0	%	$	1,614,158	99.4	%
Nonperforming	7,519		0.8	%	2,639		0.5	%	40		0.1	%	—		—	%	10,198		0.6	%
Total	$	998,585	100.0	%	$	538,348	100.0	%	$	79,033	100.0	%	$	8,390	100.0	%	$	1,624,356	100.0	%

Schedule of Investments in Loans Considered to be Impaired and Related Information on Impaired Loans

The following table presents investments in loans considered to be impaired and related information on those impaired loans as of December 31, 2019:

	December 31, 2019
(dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance
With a related allowance recorded:
Commercial real estate	$	13,011	$	14,322	$	2,023
Commercial and industrial	10,001		10,001		55
Commercial construction	489		489		113
Consumer real estate	—		—		—
Other consumer	9		9		9
Total with a Related Allowance Recorded	23,510		24,821		2,200
Without a related allowance recorded:
Commercial real estate	34,909		40,201		—
Commercial and industrial	7,605		10,358		—
Commercial construction	1,425		2,935		—
Consumer real estate	7,884		8,445		—
Other consumer	4		11		—
Total without a Related Allowance Recorded	51,827		61,950		—
Total:
Commercial real estate	47,920		54,523		2,023
Commercial and industrial	17,606		20,359		55
Commercial construction	1,914		3,424		113
Consumer real estate	7,884		8,445		—
Other consumer	13		20		9
Total	$	75,337	$	86,771	$	2,200

The following table presents average recorded investment and interest income recognized on impaired loans for the three and six months ended June 30, 2019:

	Three months ended				Six months ended
	June 30, 2019				June 30, 2019
(dollars in thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With a related allowance recorded:
Commercial real estate	$	7,703	$	—	$	7,704	$	—
Commercial and industrial	758		13		772		26
Commercial construction	489		—		489		—
Consumer real estate	666		—		666		—
Other consumer	16		—		18		1
Total with a Related Allowance Recorded	9,632		13		9,649		27
Without a related allowance recorded:
Commercial real estate	21,802		77		22,093		124
Commercial and industrial	7,568		131		5,329		189
Commercial construction	2,319		48		2,319		83
Consumer real estate	7,952		93		7,979		188
Other consumer	3		—		4		—
Total without a Related Allowance Recorded	39,644		349		37,724		584
Total:
Commercial real estate	29,505		77		29,797		124
Commercial and industrial	8,326		144		6,101		215
Commercial construction	2,808		48		2,808		83
Consumer real estate	8,618		93		8,645		188
Other consumer	19		—		22		1
Total	$	49,276	$	362	$	47,373	$	611

Schedule of Summary of Allowance for Loan Losses

The following table details activity in the allowance for loan losses for the three and six months ended June 30, 2019:

	Three Months Ended June 30, 2019
(dollars in thousands)	Commercial Real Estate		Commercial and Industrial		Commercial Construction		Consumer Real Estate		Other Consumer		Total Loans
Balance at beginning of period	$	34,903	$	11,996	$	6,757	$	6,178	$	1,575	$	61,409
Charge-offs	(528)		(1,435)		—		(247)		(457)		(2,667)
Recoveries	6		91		2		344		89		532
Net (Charge-offs)/Recoveries	(522)		(1,344)		2		97		(368)		(2,135)
Provision for credit losses	(1,545)		2,575		495		296		384		2,205
Balance at End of Period	$	32,836	$	13,227	$	7,254	$	6,571	$	1,591	$	61,479

	Six Months Ended June 30, 2019
(dollars in thousands)	Commercial Real Estate		Commercial and Industrial		Commercial Construction		Consumer Real Estate		Other Consumer		Total Loans
Balance at beginning of period	$	33,707	$	11,596	$	7,983	$	6,187	$	1,523	$	60,996
Charge-offs	(529)		(6,912)		—		(410)		(840)		(8,691)
Recoveries	128		508		3		492		189		1,320
Net (Charge-offs)/Recoveries	(401)		(6,404)		3		82		(651)		(7,371)
Provision for credit losses	(470)		8,035		(732)		302		719		7,854
Balance at End of Period	$	32,836	$	13,227	$	7,254	$	6,571	$	1,591	$	61,479

Schedule of Summary of Allowance for Loan Losses and Recorded Investments

The following tables present the allowance for loan losses and recorded investments in loans by category as of December 31, 2019:

	December 31, 2019
	Allowance for Loan Losses						Portfolio Loans
(dollars in thousands)	Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total		Individually Evaluated for Impairment		Collectively Evaluated for Impairment		Total
Commercial real estate	$	2,023	$	28,554	$	30,577	$	47,920	$	3,368,598	$	3,416,518
Commercial and industrial	55		15,626		15,681		17,606		1,703,227		1,720,833
Commercial construction	113		7,787		7,900		1,914		373,531		375,445
Consumer real estate	—		6,337		6,337		7,884		1,537,439		1,545,323
Other consumer	9		1,720		1,729		13		79,020		79,033
Total	$	2,200	$	60,024	$	62,224	$	75,337	$	7,061,815	$	7,137,152