Loans, Allowance for Loan Losses and Credit Quality (Tables)

9 Months Ended

Sep. 30, 2013

Loans, Allowance for Loan Losses and Credit Quality [Abstract]

Allowance for loans based on collective and individual evaluation of impairment by loan category

The following tables bifurcate the amount of allowance allocated to each loan category based on the type of impairment analysis as of the periods indicated:

	September 30, 2013
	(Dollars in thousands)
	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Residential Real Estate		Home Equity		Other Consumer		Total
Financing receivables
Ending balance: total loans by group	$	756,222	$	2,166,281	$	236,466	$	75,273	$	496,464	$	804,670	$	20,653	$	4,556,029	(1	)
Ending balance: individually evaluated for impairment	$	9,646	$	39,805	$	100	$	2,062	$	15,786	$	4,131	$	1,437	$	72,967
Ending balance: purchase credit impaired loans	$	—	$	18,114	$	—	$	—	$	8,888	$	330	$	—	$	27,332
Ending balance: collectively evaluated for impairment	$	746,576	$	2,108,362	$	236,366	$	73,211	$	471,790	$	800,209	$	19,216	$	4,455,730

	December 31, 2012
	(Dollars in thousands)
	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Residential Real Estate		Home Equity		Other Consumer		Total
Financing receivables
Ending balance: total loans by group	$	687,511	$	2,122,153	$	188,768	$	78,594	$	612,881	$	802,149	$	26,955	$	4,519,011	(1	)
Ending balance: individually evaluated for impairment	$	8,575	$	33,868	$	—	$	2,279	$	15,373	$	4,435	$	2,129	$	66,659
Ending Balance: purchase credit impaired loans	$	—	$	21,853	$	—	$	—	$	9,821	$	380	$	—	$	32,054
Ending balance: collectively evaluated for impairment	$	678,936	$	2,066,432	$	188,768	$	76,315	$	587,687	$	797,334	$	24,826	$	4,420,298

(1) The amount of deferred fees included in the ending balance was $2.4 million and $3.1 million at September 30, 2013 and December 31, 2012, respectively.

Summary of changes in allowance for loan losses

The following tables summarize changes in allowance for loan losses by loan category for the periods indicated:

	Three Months Ended September 30, 2013
	(Dollars in thousands)
	Commercial and Industrial			Commercial Real Estate			Commercial Construction			Small Business			Residential Real Estate			Home Equity			Other Consumer			Total
Allowance for loan losses
Beginning balance	$	14,325		$	23,029		$	3,422		$	1,295		$	2,959		$	7,267		$	679		$	52,976
Charge-offs	(866		)	(209		)	(308		)	(84		)	(210		)	(420		)	(273		)	(2,370		)
Recoveries	24			89			—			47			5			22			119			306
Provision	1,531			2,069			387			(43		)	141			(1,555		)	120			2,650
Ending balance	$	15,014		$	24,978		$	3,501		$	1,215		$	2,895		$	5,314		$	645		$	53,562

	Three Months Ended September 30, 2012
	(Dollars in thousands)
	Commercial and Industrial			Commercial Real Estate			Commercial Construction		Small Business			Residential Real Estate			Home Equity			Other Consumer			Total
Allowance for loan losses
Beginning balance	$	11,558		$	21,376		$	2,220	$	1,320		$	2,981		$	7,854		$	1,094		$	48,403
Charge-offs	(1,267		)	(621		)	—		(98		)	(227		)	(365		)	(247		)	(2,825		)
Recoveries	122			188			—		21			79			36			116			562
Provision	1,555			962			359		128			101			443			58			3,606
Ending balance	$	11,968		$	21,905		$	2,579	$	1,371		$	2,934		$	7,968		$	1,021		$	49,746

	Nine Months Ended September 30, 2013
	(Dollars in thousands)
	Commercial and Industrial			Commercial Real Estate			Commercial Construction			Small Business			Residential Real Estate			Home Equity			Other Consumer			Total
Allowance for loan losses
Beginning balance	$	13,461		$	22,598		$	2,811		$	1,524		$	2,930		$	7,703		$	807		$	51,834
Charge-offs	(2,591		)	(812		)	(308		)	(505		)	(457		)	(954		)	(794		)	(6,421		)
Recoveries	263			97			—			123			91			73			452			1,099
Provision	3,881			3,095			998			73			331			(1,508		)	180			7,050
Ending balance	$	15,014		$	24,978		$	3,501		$	1,215		$	2,895		$	5,314		$	645		$	53,562
Ending balance: Individually evaluated for impairment	$	1,174		$	2,150		$	—		$	111		$	1,651		$	112		$	83		$	5,281
Ending balance: Collectively evaluated for impairment	$	13,840		$	22,828		$	3,501		$	1,104		$	1,244		$	5,202		$	562		$	48,281
	Nine Months Ended September 30, 2012
	(Dollars in thousands)
	Commercial and Industrial			Commercial Real Estate			Commercial Construction			Small Business			Residential Real Estate			Home Equity			Other Consumer			Total
Allowance for loan losses
Beginning balance	$	11,682		$	23,514		$	2,076		$	1,896		$	3,113		$	4,597		$	1,382		$	48,260
Charge-offs	(5,989		)	(3,358		)	—			(404		)	(441		)	(2,506		)	(840		)	(13,538		)
Recoveries	435			188			—			119			79			67			430			1,318
Provision	5,840			1,561			503			(240		)	183			5,810			49			13,706
Ending balance	$	11,968		$	21,905		$	2,579		$	1,371		$	2,934		$	7,968		$	1,021		$	49,746
Ending balance: Individually evaluated for impairment	$	281		$	737		$	—		$	201		$	1,326		$	36		$	174		$	2,755
Ending balance: Collectively evaluated for impairment	$	11,687		$	21,168		$	2,579		$	1,170		$	1,608		$	7,932		$	847		$	46,991

Internal risk-rating categories for the Company's commercial portfolio

The following table details the internal risk-rating categories for the Company’s commercial portfolio:

		September 30, 2013
Category	Risk Rating	Commercial  and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Total
		(Dollars in thousands)
Pass	1 - 6	$	710,761	$	1,999,924	$	223,420	$	68,489	$	3,002,594
Potential weakness	7	24,668		71,371		7,881		2,940		106,860
Definite weakness-loss unlikely	8	20,403		93,899		5,065		3,780		123,147
Partial loss probable	9	390		1,087		100		64		1,641
Definite loss	10	—		—		—		—		—
Total		$	756,222	$	2,166,281	$	236,466	$	75,273	$	3,234,242

		December 31, 2012
Category	Risk Rating	Commercial  and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Total
		(Dollars in thousands)
Pass	1 - 6	$	647,984	$	1,928,148	$	177,693	$	71,231	$	2,825,056
Potential weakness	7	16,420		92,651		6,195		3,213		118,479
Definite weakness-loss unlikely	8	21,979		98,688		4,880		4,080		129,627
Partial loss probable	9	1,128		2,666		—		70		3,864
Definite loss	10	—		—		—		—		—
Total		$	687,511	$	2,122,153	$	188,768	$	78,594	$	3,077,026

Weighted average FICO scores and the weighted average combined LTV ratio

The following table shows the weighted average FICO scores and the weighted average combined LTV ratios as of the periods indicated below:

	September 30, 2013		December 31, 2012
Residential portfolio
FICO score (re-scored) (1)	739		727
LTV (re-valued) (2)	69.0	%	67.0	%
Home equity portfolio
FICO score (re-scored) (1)	763		763
LTV (re-valued) (2)	55.0	%	54.0	%

(1) The average FICO scores for September 30, 2013 are based upon rescores available from August 2013 and actual score data for loans booked between September 1 and September 30, 2013. The average FICO scores for December 31, 2012 are based upon rescores available from November 2012 and actual score data for loans booked between December 1 and December 31, 2012.

(2) The combined LTV ratios for September 30, 2013 are based upon updated automated valuations as of February 2013 and actual score data for loans booked between March 1 and September 30, 2013. The combined LTV ratios for December 31, 2012 are based upon updated automated valuations as of November 30, 2011 and actual score data for loans through December 31, 2012. For home equity loans and lines in a subordinate lien, the LTV data represents a combined LTV, taking into account the senior lien data for loans and lines.

Summary of nonaccrual loans

The following table shows nonaccrual loans at the dates indicated:

	September 30, 2013		December 31, 2012
	(Dollars in thousands)
Commercial and industrial	$	4,557	$	2,666
Commercial real estate	12,800		6,574
Commercial construction	100		—
Small business	615		570
Residential real estate	11,817		11,472
Home equity (1)	7,320		7,311
Other consumer	134		121
Total nonaccrual loans (2)	$	37,343	$	28,714

(1) Includes home equity loans which are currently performing but have been placed on nonaccrual as a result of delinquency with respect to the first position, which is held by another financial institution.

(2) Included in these amounts were $8.6 million and $6.6 million of nonaccruing TDRs at September 30, 2013 and December 31, 2012, respectively.

Age analysis of past due financing receivables

The following table shows the age analysis of past due financing receivables as of the dates indicated:

	September 30, 2013
	30-59 days			60-89 days			90 days or more			Total Past Due					Total Financing Receivables		Recorded Investment >90 Days and Accruing
	Number of Loans	Principal Balance		Number of Loans	Principal Balance		Number of Loans	Principal Balance		Number of Loans	Principal Balance		Current
	(Dollars in thousands)
Loan Portfolio
Commercial and industrial	7	$	837	5	$	851	22	$	4,033	34	$	5,721	$	750,501	$	756,222	$	—
Commercial real estate	17	8,175		6	2,150		29	8,987		52	19,312		2,146,969		2,166,281		—
Commercial construction	—	—		—	—		1	100		1	100		236,366		236,466		—
Small business	14	328		8	295		18	278		40	901		74,372		75,273		—
Residential real estate	17	2,315		9	1,679		38	6,335		64	10,329		486,135		496,464		433
Home equity	19	1,558		7	646		23	1,598		49	3,802		800,868		804,670		—
Other consumer	114	554		28	96		31	231		173	881		19,772		20,653		111
Total	188	$	13,767	63	$	5,717	162	$	21,562	413	$	41,046	$	4,514,983	$	4,556,029	$	544

	December 31, 2012
	30-59 days			60-89 days			90 days or more			Total Past Due					Total Financing Receivables		Recorded Investment >90 Days and Accruing
	Number of Loans	Principal Balance		Number of Loans	Principal Balance		Number of Loans	Principal Balance		Number of Loans	Principal Balance		Current
	(Dollars in thousands)
Loan Portfolio
Commercial and industrial	14	$	1,305	7	$	336	23	$	1,875	44	$	3,516	$	683,995	$	687,511	$	—
Commercial real estate	19	5,028		8	2,316		31	6,054		58	13,398		2,108,755		2,122,153		—
Commercial construction	—	—		—	—		—	—		—	—		188,768		188,768		—
Small business	20	750		8	94		10	320		38	1,164		77,430		78,594		—
Residential real estate	17	3,053		7	1,848		40	7,501		64	12,402		600,479		612,881		—
Home equity	32	2,756		10	632		17	1,392		59	4,780		797,369		802,149		—
Other consumer	208	1,217		32	224		28	153		268	1,594		25,361		26,955		52
Total	310	$	14,109	72	$	5,450	149	$	17,295	531	$	36,854	$	4,482,157	$	4,519,011	$	52

Summary of Troubled Debt Restructuring and other pertinent information

The following table shows the Company’s total TDRs and other pertinent information as of the dates indicated:

	September 30, 2013		December 31, 2012
	(Dollars in thousands)
TDRs on accrual status	$	36,429	$	46,764
TDRs on nonaccrual	8,567		6,554
Total TDRs	$	44,996	$	53,318
Amount of specific reserves included in the allowance for loan losses associated with TDRs:	$	2,544	$	3,049
Additional commitments to lend to a borrower who has been a party to a TDR:	$	1,582	$	1,847

Change in investment recorded subsequent to modifications

The following table shows the modifications which occurred during the periods indicated and the change in the recorded investment subsequent to the modifications occurring:

	Three Months Ended					Nine Months Ended
	September 30, 2013					September 30, 2013
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment (1)		Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment (1)
	(Dollars in thousands)
Troubled debt restructurings
Commercial & industrial	1	$	37	$	37	3	$	319	$	319
Commercial real estate	2	463		463		4	1,526		1,526
Small business	4	$	261	$	261	9	543		543
Residential real estate	1	228		228		7	2,128		2,154
Home equity	1	184		184		4	378		378
Other consumer	—	—		—		2	11		11
Total	9	$	1,173	$	1,173	29	$	4,905	$	4,931

	Three Months Ended					Nine Months Ended
	September 30, 2012					September 30, 2012
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment (1)		Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment (1)
	(Dollars in thousands)
Troubled debt restructurings
Commercial & industrial	4	$	329	$	329	15	$	1,602	$	1,602
Commercial real estate	5	1,624		1,624		13	6,274		6,274
Small business	8	327		327		16	724		724
Residential real estate	5	889		893		9	1,539		1,543
Home equity	3	111		113		12	767		769
Other consumer	8	57		57		30	459		459
Total	33	$	3,337	$	3,343	95	$	11,365	$	11,371

(1) The post-modification balances represent the balance of the loan on the date of modifications. These amounts may show an increase when modifications include a capitalization of interest.

Post modification balance of Troubled Debt Restructuring

The following table shows the Company’s post-modification balance of TDRs listed by type of modification as of the periods indicated:

	Three Months Ended September 30				Nine Months Ended September 30
	2013		2012		2013		2012
	(Dollars in thousands)				(Dollars in thousands)
Extended maturity	$	438	$	721	$	1,429	$	4,058
Adjusted interest rate	—		1,207		—		1,561
Combination rate & maturity	735		1,136		3,491		4,358
Court ordered concession	—		279		11		1,394
Total	$	1,173	$	3,343	$	4,931	$	11,371

Troubled Debt Restructurings that subsequently defaulted

The following table shows the loans that have been modified during the past twelve months which have subsequently defaulted during the periods indicated. The Company considers a loan to have defaulted when it reaches 90 days past due.

	Three Months Ended September 30
	2013			2012
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(Dollars in thousands)
Troubled debt restructurings that subsequently defaulted
Commercial real estate	—	—		1	202
Residential real estate	—	—		1	190
Total	—	$	—	2	$	392
	Nine Months Ended September 30
	2013			2012
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(Dollars in thousands)
Troubled debt restructurings that subsequently defaulted
Commercial & industrial	1	$	1,614	—	$	—
Commercial real estate	—	—		1	202
Small business	1	231		—	—
Residential real estate	—	—		1	190
Total	2	$	1,845	2	$	392

Impaired loans by loan portfolio

The tables below set forth information regarding the Company’s impaired loans by loan portfolio as of the dates indicated:

	September 30, 2013
	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Dollars in thousands)
With no related allowance recorded
Commercial & industrial	$	7,512	$	7,815	$	—
Commercial real estate	14,872		15,674		—
Commercial construction	100		408		—
Small business	1,446		1,611		—
Residential real estate	2,053		2,311		—
Home equity	3,559		3,614		—
Other consumer	485		486		—
Subtotal	30,027		31,919		—
With an allowance recorded
Commercial & industrial	$	2,134	$	2,154	$	1,174
Commercial real estate	24,933		25,007		2,150
Commercial construction	—		—		—
Small business	616		644		111
Residential real estate	13,733		14,678		1,651
Home equity	572		637		112
Other consumer	952		971		83
Subtotal	42,940		44,091		5,281
Total	$	72,967	$	76,010	$	5,281

	December 31, 2012
	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Dollars in thousands)
With no related allowance recorded
Commercial & industrial	$	5,849	$	7,343	$	—
Commercial real estate	12,999		13,698		—
Commercial construction	—		—		—
Small business	1,085		1,147		—
Residential real estate	2,545		2,630		—
Home equity	4,119		4,166		—
Other consumer	700		705		—
Subtotal	27,297		29,689		—
With an allowance recorded
Commercial & industrial	$	2,726	$	2,851	$	1,084
Commercial real estate	20,869		21,438		516
Commercial construction	—		—		—
Small business	1,194		1,228		353
Residential real estate	12,828		13,601		1,302
Home equity	316		389		35
Other consumer	1,429		1,453		130
Subtotal	39,362		40,960		3,420
Total	$	66,659	$	70,649	$	3,420

Interest income recognized on impaired loans

The following tables set forth information regarding interest income recognized on impaired loans, by portfolio, for the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30, 2013				September 30, 2013
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
With no related allowance recorded
Commercial & industrial	$	7,553	$	91	$	7,762	$	275
Commercial real estate	15,175		262		15,638		788
Commercial construction	1,105		13		1,441		39
Small business	1,479		26		1,631		79
Residential real estate	2,159		24		2,221		68
Home equity	3,570		41		3,604		126
Other consumer	500		9		543		32
Subtotal	31,541		466		32,840		1,407
With an allowance recorded
Commercial & industrial	$	2,360	$	30	$	2,684	$	96
Commercial real estate	24,984		330		25,128		1,013
Commercial construction	—		—		—		—
Small business	624		10		652		30
Residential real estate	13,773		135		13,884		391
Home equity	575		6		585		18
Other consumer	973		9		1,041		27
Subtotal	43,289		520		43,974		1,575
Total	$	74,830	$	986	$	76,814	$	2,982

	Three Months Ended				Nine Months Ended
	September 30, 2012				September 30, 2012
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
With no related allowance recorded
Commercial & industrial	$	8,181	$	107	$	8,584	$	323
Commercial real estate	18,625		329		19,033		1,005
Commercial construction	—		—		—		—
Small business	1,461		25		1,543		79
Residential real estate	2,709		81		2,730		84
Home equity	3,527		39		3,571		117
Other consumer	81		1		78		3
Subtotal	34,584		582		35,539		1,611
With an allowance recorded
Commercial & industrial	$	1,077	$	23	$	1,487	$	74
Commercial real estate	17,444		255		18,103		790
Commercial construction	—		—		—		—
Small business	1,176		16		1,171		49
Residential real estate	13,592		168		13,720		434
Home equity	803		14		815		41
Other consumer	2,283		30		2,447		98
Subtotal	36,375		506		37,743		1,486
Total	$	70,959	$	1,088	$	73,282	$	3,097

Certain Loans Acquired In Transfer Accounted For As Debt Securities Acquired During Period

The following table displays certain information pertaining to purchased credit impaired loans at the dated indicated:

	September 30, 2013		December 31, 2012
	(Dollars in thousands)
Outstanding balance	$	30,305	$	36,278
Carrying amount	$	27,333	$	32,054

Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule

The following table summarizes activity in the accretable yield for the PCI loan portfolio:

	(Dollars in thousands)
Balance at January 1, 2012	$	—
Acquisition	3,095
Accretion	(903		)
Reclassification from nonaccretable difference for loans with improved cash flows (1)	272
Balance at December 31, 2012	2,464
Balance at January 1, 2013	$	2,464
Accretion	(1,453		)
Other change in expected cash flows (2)	1,142
Reclassification from nonaccretable difference for loans with improved cash flows (1)	335
Balance at September 30, 2013	$	2,488

(1) Results in increased interest income during the period in which the loan paid off.

(2) Represents changes in cash flows expected to be collected and resulting in increased interest income as a prospective yield adjustment over the remaining life of the loan(s).