XML 28 R13.htm IDEA: XBRL DOCUMENT v3.8.0.1
Allowance for Loan Losses
 9 Months Ended
Sep. 30, 2017
Receivables [Abstract]  
Allowance for Loan Losses
Allowance for Loan Losses
The allowance for loan losses is management’s best estimate of inherent risk of loss in the loan portfolio as of the balance sheet date. The Corporation uses a methodology to systematically measure the amount of estimated loan loss exposure inherent in the loan portfolio for purposes of establishing a sufficient allowance for loan losses. The methodology includes: (1) the identification of loss allocations for individual loans deemed to be impaired and (2) the application of loss allocation factors for non-impaired loans based on historical loss experience and estimated loss emergence period, with adjustments for various exposures that management believes are not adequately represented by historical loss experience.

The following table presents the activity in the allowance for loan losses for the three months ended September 30, 2017:
(Dollars in thousands)
Commercial
 
 
 
 
 
 
 
 
 
Mortgages
 
Construction
 
C&I (1)
 
Total Commercial
 
Residential
 
Consumer
 
Total
Beginning Balance

$10,735

 

$1,200

 

$7,067

 

$19,002

 

$5,369

 

$2,291

 

$26,662

Charge-offs
(535
)
 
—

 
(122
)
 
(657
)
 
—

 
(37
)
 
(694
)
Recoveries
—

 
—

 
8

 
8

 
1

 
31

 
40

Provision
1,482

 
(95
)
 
(301
)
 
1,086

 
70

 
144

 
1,300

Ending Balance

$11,682

 

$1,105

 

$6,652

 

$19,439

 

$5,440

 

$2,429

 

$27,308


(1) Commercial & industrial loans.

The following table presents the activity in the allowance for loan losses for the nine months ended September 30, 2017:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
Commercial
 
 
 
 
 
 
 
 
 
Mortgages
 
Construction
 
C&I (1)
 
Total Commercial
 
Residential
 
Consumer
 
Total
Beginning Balance

$9,971

 

$1,195

 

$6,992

 

$18,158

 

$5,252

 

$2,594

 

$26,004

Charge-offs
(935
)
 
—

 
(286
)
 
(1,221
)
 
(32
)
 
(162
)
 
(1,415
)
Recoveries
82

 
—

 
162

 
244

 
29

 
46

 
319

Provision
2,564

 
(90
)
 
(216
)
 
2,258

 
191

 
(49
)
 
2,400

Ending Balance

$11,682

 

$1,105

 

$6,652

 

$19,439

 

$5,440

 

$2,429

 

$27,308

(1) Commercial & industrial loans.

The following table presents the activity in the allowance for loan losses for the three months ended September 30, 2016:
(Dollars in thousands)
Commercial
 
 
 
 
 
 
 
 
 
Mortgages
 
Construction
 
C&I (1)
 
Total Commercial
 
Residential
 
Consumer
 
Total
Beginning Balance

$10,413

 

$904

 

$6,520

 

$17,837

 

$5,469

 

$2,520

 

$25,826

Charge-offs
(1,940
)
 
—

 
(3
)
 
(1,943
)
 
(52
)
 
(60
)
 
(2,055
)
Recoveries
4

 
—

 
46

 
50

 
5

 
23

 
78

Provision
1,981

 
78

 
(59
)
 
2,000

 
(21
)
 
(179
)
 
1,800

Ending Balance

$10,458

 

$982

 

$6,504

 

$17,944

 

$5,401

 

$2,304

 

$25,649

(1) Commercial & industrial loans.

The following table presents the activity in the allowance for loan losses for the nine months ended September 30, 2016:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
Commercial
 
 
 
 
 
 
 
 
 
Mortgages
 
Construction
 
C&I (1)
 
Total Commercial
 
Residential
 
Consumer
 
Total
Beginning Balance

$9,140

 

$1,758

 

$8,202

 

$19,100

 

$5,460

 

$2,509

 

$27,069

Charge-offs
(3,271
)
 
—

 
(757
)
 
(4,028
)
 
(192
)
 
(170
)
 
(4,390
)
Recoveries
21

 
—

 
134

 
155

 
9

 
56

 
220

Provision
4,568

 
(776
)
 
(1,075
)
 
2,717

 
124

 
(91
)
 
2,750

Ending Balance

$10,458

 

$982

 

$6,504

 

$17,944

 

$5,401

 

$2,304

 

$25,649


(1) Commercial & industrial loans.

The following table presents the Corporation’s loan portfolio and associated allowance for loan loss by portfolio segment and by impairment methodology:
(Dollars in thousands)
September 30, 2017
 
December 31, 2016
 
Loans
 
Related Allowance
 
Loans
 
Related Allowance
Loans Individually Evaluated for Impairment:
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
Mortgages

$6,659

 

$933

 

$9,776

 

$448

Construction & development
—

 
—

 
—

 
—

Commercial & industrial
5,791

 
48

 
7,098

 
3

Residential real estate
12,069

 
157

 
15,661

 
151

Consumer
628

 
7

 
1,280

 
4

Subtotal
25,147

 
1,145

 
33,815

 
606

Loans Collectively Evaluated for Impairment:
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
Mortgages

$1,078,876

 

$10,749

 

$1,064,410

 

$9,523

Construction & development
126,257

 
1,105

 
121,371

 
1,195

Commercial & industrial
582,533

 
6,604

 
569,011

 
6,989

Residential real estate
1,183,468

 
5,283

 
1,107,087

 
5,101

Consumer
326,797

 
2,422

 
338,677

 
2,590

Subtotal
3,297,931

 
26,163

 
3,200,556

 
25,398

Total

$3,323,078

 

$27,308

 

$3,234,371

 

$26,004