XML 103 R35.htm IDEA: XBRL DOCUMENT v2.4.1.9
LOANS, ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (Tables)
12 Months Ended
Dec. 31, 2014
Loans, Allowance for Loan Losses and Credit Quality [Abstract]  
Schedule of Allowance for Loan Losses
The following table summarizes changes in the allowance for loan losses by loan category and bifurcates the amount of allowance allocated to each loan category based on collective impairment analysis and loans evaluated individually for impairment:
 
December 31, 2014
 

Commercial
and
Industrial
 
Commercial
Real Estate
 
Commercial
Construction
 
Small
Business
 
Residential
Real
Estate
 
Home
Equity
 
Other Consumer
 
Total
 
 
(Dollars in thousands)
 
Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
15,622

 
$
24,541

 
$
3,371

 
$
1,215

 
$
2,760

 
$
5,036

 
$
694

 
$
53,239

  
Charge-offs
(2,097
)
 
(5,454
)
 

 
(605
)
 
(826
)
 
(750
)
 
(1,215
)
 
(10,947
)
  
Recoveries
462

 
404

 

 
275

 
424

 
249

 
591

 
2,405

  
Provision
1,586

 
6,382

 
574

 
286

 
476

 
421

 
678

 
10,403

  
Ending balance
$
15,573

 
$
25,873

 
$
3,945

 
$
1,171

 
$
2,834

 
$
4,956

 
$
748

 
$
55,100

  
Ending balance: individually evaluated for impairment
$
412

 
$
197

 
$

 
$
7

 
$
1,500

 
$
262

 
$
38

 
$
2,416

  
Ending balance: collectively evaluated for impairment
$
15,161

 
$
25,676

 
$
3,945

 
$
1,164

 
$
1,334

 
$
4,694

 
$
710

 
$
52,684

  
Financing receivables ending balance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
4,654

 
$
30,729

 
$
311

 
$
1,088

 
$
15,055

 
$
5,330

 
$
868

 
$
58,035

  
Collectively evaluated for impairment
856,185

 
2,304,099

 
265,501

 
84,159

 
505,799

 
858,305

 
16,335

 
4,890,383

 
Purchase credit impaired loans

 
12,495

 
182

 

 
9,405

 
228

 
5

 
22,315

 
Total loans by group
$
860,839

 
$
2,347,323

 
$
265,994

 
$
85,247

 
$
530,259

 
$
863,863

 
$
17,208

 
$
4,970,733

(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
 

Commercial
and
Industrial
 
Commercial
Real Estate
 
Commercial
Construction
 
Small
Business
 
Residential
Real
Estate
 
Home
Equity
 
Other Consumer
 
Total
 
 
(Dollars in thousands)
 
Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
13,461

 
$
22,598

 
$
2,811

 
$
1,524

 
$
2,930

 
$
7,703

 
$
807

 
$
51,834

  
Charge-offs
(2,683
)
 
(3,587
)
 
(308
)
 
(773
)
 
(622
)
 
(1,370
)
 
(1,175
)
 
(10,518
)
  
Recoveries
272

 
206

 
100

 
279

 
143

 
135

 
588

 
1,723

  
Provision
$
4,572

 
$
5,324

 
$
768

 
$
185

 
$
309

 
$
(1,432
)
 
$
474

 
$
10,200

  
Ending balance
$
15,622

 
$
24,541

 
$
3,371

 
$
1,215

 
$
2,760

 
$
5,036

 
$
694

 
$
53,239

  
Ending balance: individually evaluated for impairment
$
1,150

 
$
765

 
$

 
$
109

 
$
1,564

 
$
116

 
$
70

 
$
3,774

  
Ending balance: collectively evaluated for impairment
$
14,472

 
$
23,776

 
$
3,371

 
$
1,106

 
$
1,196

 
$
4,920

 
$
624

 
$
49,465

  
Financing receivables ending balance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
9,148

 
$
39,516

 
$
100

 
$
1,903

 
$
15,200

 
$
4,890

 
$
1,298

 
$
72,055

  
Collectively evaluated for impairment
775,053

 
2,191,132

 
223,562

 
75,337

 
515,854

 
816,925

 
18,845

 
4,616,708

  
Purchase credit impaired loans
1

 
18,612

 
197

 

 
10,389

 
326

 
19

 
29,544

 
Total loans by group
$
784,202

 
$
2,249,260

 
$
223,859

 
$
77,240

 
$
541,443

 
$
822,141

 
$
20,162

 
$
4,718,307

(1)
 
December 31, 2012
 

Commercial
and
Industrial
 
Commercial
Real Estate
 
Commercial
Construction
 
Small
Business
 
Residential
Real
Estate
 

Home
Equity
 
Other Consumer
 
Total
 
 
(Dollars in thousands)
 
Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
11,682

 
$
23,514

 
$
2,076

 
$
1,896

 
$
3,113

 
$
4,597

 
$
1,382

 
$
48,260

  
Charge-offs
(6,191
)
 
(4,348
)
 

 
(616
)
 
(1,094
)
 
(3,178
)
 
(1,165
)
 
(16,592
)
  
Recoveries
963

 
188

 

 
134

 
151

 
93

 
581

 
2,110

  
Provision
7,007

 
3,244

 
735

 
110

 
760

 
6,191

 
9

 
18,056

  
Ending balance
$
13,461

 
$
22,598

 
$
2,811

 
$
1,524

 
$
2,930

 
$
7,703

 
$
807

 
$
51,834

  
Ending balance: individually evaluated for impairment
$
1,084

 
$
516

 
$

 
$
353

 
$
1,302

 
$
35

 
$
130

 
$
3,420

  
Ending balance: collectively evaluated for impairment
$
12,377

 
$
22,082

 
$
2,811

 
$
1,171

 
$
1,628

 
$
7,668

 
$
677

 
$
48,414

  
Financing receivables ending balance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
8,575

 
$
33,868

 
$

 
$
2,279

 
$
15,373

 
$
4,435

 
$
2,129

 
$
66,659

  
Collectively evaluated for impairment
678,936

 
2,066,432

 
188,768

 
76,315

 
587,687

 
797,334

 
24,826

 
4,420,298

  
Purchase credit impaired loans

 
21,853

 

 

 
9,821

 
380

 

 
32,054

 
Total loans by group
$
687,511

 
$
2,122,153

 
$
188,768

 
$
78,594

 
$
612,881

 
$
802,149

 
$
26,955

 
$
4,519,011

(1)
(1)
The amount of net deferred fees included in the ending balance was $2.8 million, $2.3 million, and $3.1 million at December 31, 2014, 2013, and 2012, respectively.
Schedule of 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:
 
 
 
December 31, 2014
Category
Risk
Rating
 
Commercial and
Industrial
 
Commercial Real
Estate
 
Commercial
Construction
 
Small Business
 
Total
 
 
 
(Dollars in thousands)
Pass
1 - 6
 
$
801,578

 
$
2,196,109

 
$
248,696

 
$
81,255

 
$
3,327,638

Potential weakness
7
 
37,802

 
82,372

 
15,464

 
2,932

 
138,570

Definite weakness
8
 
20,241

 
67,571

 
1,834

 
949

 
90,595

Partial loss probable
9
 
1,218

 
1,271

 

 
111

 
2,600

Definite loss
10
 

 

 

 

 

Total
 
 
$
860,839

 
$
2,347,323

 
$
265,994

 
$
85,247

 
$
3,559,403

 
 
 
December 31, 2013
Category
Risk
Rating
 
Commercial and
Industrial
 
Commercial Real
Estate
 
Commercial
Construction
 
Small Business
 
Total
 
 
 
(Dollars in thousands)
Pass
1 - 6
 
$
736,996

 
$
2,068,995

 
$
210,372

 
$
71,514

 
$
3,087,877

Potential weakness
7
 
21,841

 
91,984

 
8,608

 
3,031

 
125,464

Definite weakness
8
 
24,409

 
85,767

 
4,779

 
2,552

 
117,507

Partial loss probable
9
 
956

 
2,514

 
100

 
143

 
3,713

Definite loss
10
 

 

 

 

 

Total
 
 
$
784,202

 
$
2,249,260

 
$
223,859

 
$
77,240

 
$
3,334,561

Schedule of Weighted Average FICO Scores and Weighted Average Combined LTV Ratio

 
December 31
 
2014
 
2013
Residential portfolio
 
 
 
FICO score (re-scored)(1)
739

 
738

LTV (re-valued)(2)
67.1
%
 
67.0
%
Home equity portfolio
 
 
 
FICO score (re-scored)(1)
764

 
763

LTV (re-valued)(2)
53.6
%
 
53.0
%
(1)
The average FICO scores above are based upon rescores available from November and origination score data for loans booked between December 1 and December 31, for the years indicated.
(2)
The combined LTV ratios for December 31, 2014 and 2013 are based upon updated automated valuations as of February 28, 2013 and actual score data for loans booked from March 1, 2013 through December 31, 2014.
Schedule of Nonaccrual Loans
The following table shows nonaccrual loans at the dates indicated:
 
December 31
 
2014
 
2013
 
(Dollars in thousands)
Commercial and industrial
$
2,822

 
$
4,178

Commercial real estate
7,279

 
11,734

Commercial construction
311

 
100

Small business
246

 
633

Residential real estate
8,697

 
10,329

Home equity
8,038

 
7,068

Other consumer

 
92

Total nonaccrual loans(1)
$
27,393

 
$
34,134


(1)
Included in these amounts were $5.2 million and $7.5 million nonaccruing TDRs at December 31, 2014 and 2013, respectively.
Schedule of the Age Analysis of Past Due Financing Receivables
The following table shows the age analysis of past due financing receivables as of the dates indicated:
 
December 31, 2014
 
30-59 days
 
60-89 days
 
90 days or more
 
Total Past Due
 
Current
 
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
 
 
(Dollars in thousands)
Commercial and industrial
18

 
$
3,192

 
10

 
$
1,007

 
19

 
$
2,320

 
47

 
$
6,519

 
$
854,320

 
$
860,839

 
$

Commercial real estate
19

 
13,428

 
6

 
1,480

 
16

 
4,225

 
41

 
19,133

 
2,328,190

 
2,347,323

 

Commercial construction
1

 
506

 

 

 
1

 
311

 
2

 
817

 
265,177

 
265,994

 

Small business
7

 
21

 
8

 
113

 
7

 
173

 
22

 
307

 
84,940

 
85,247

 

Residential real estate
13

 
1,670

 
10

 
1,798

 
36

 
4,826

 
59

 
8,294

 
521,965

 
530,259

 
106

Home equity
20

 
1,559

 
7

 
307

 
23

 
2,402

 
50

 
4,268

 
859,595

 
863,863

 

Other consumer
34

 
233

 
6

 
20

 
8

 
13

 
48

 
266

 
16,942

 
17,208

 
13

Total
112

 
$
20,609

 
47

 
$
4,725

 
110

 
$
14,270

 
269

 
$
39,604

 
$
4,931,129

 
$
4,970,733

 
$
119


 
December 31, 2013
 
30-59 days
 
60-89 days
 
90 days or more
 
Total Past Due
 
Current
 
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
 
 
(Dollars in thousands)
Commercial and industrial
9

 
$
743

 
6

 
$
327

 
20

 
$
3,763

 
35

 
$
4,833

 
$
779,369

 
$
784,202

 
$

Commercial real estate
21

 
8,643

 
2

 
356

 
30

 
8,155

 
53

 
17,154

 
2,232,106

 
2,249,260

 

Commercial construction
1

 
847

 

 

 
1

 
100

 
2

 
947

 
222,912

 
223,859

 

Small business
18

 
353

 
6

 
227

 
14

 
247

 
38

 
827

 
76,413

 
77,240

 

Residential real estate
23

 
2,903

 
8

 
1,630

 
39

 
6,648

 
70

 
11,181

 
530,262

 
541,443

 
462

Home equity
27

 
1,922

 
8

 
852

 
23

 
2,055

 
58

 
4,829

 
817,312

 
822,141

 

Other consumer
110

 
514

 
30

 
106

 
34

 
148

 
174

 
768

 
19,394

 
20,162

 
63

Total
209

 
$
15,925

 
60

 
$
3,498

 
161

 
$
21,116

 
430

 
$
40,539

 
$
4,677,768

 
$
4,718,307

 
$
525

Schedule of Troubled Debt Restructuring and Other Pertinent Information
 
December 31
 
2014
 
2013
 
(Dollars in thousands)
TDRs on accrual status
$
38,382

 
$
38,410

TDRs on nonaccrual status
5,248

 
7,454

Total TDRs
$
43,630

 
$
45,864

Amount of specific reserves included in the allowance for loan loss associated with TDRs:
$
2,004

 
$
2,474

Additional commitments to lend to a borrower who has been a party to a TDR:
$
1,400

 
$
1,877

Schedule of Troubled Debt Restructuring Modifications
 
Years Ended December 31
 
2014
 
Number
of Contracts
 
Pre-Modification
Outstanding Recorded
Investment
 
Post-Modification
Outstanding Recorded
Investment(1)
 
(Dollars in thousands)

 
 
 
 
 
Commercial & industrial
12

 
$
681

 
$
681

Commercial real estate
13

 
4,329

 
4,329

Small business
5

 
133

 
133

Residential real estate
9

 
1,535

 
1,568

Home equity
11

 
923

 
926

Other consumer
1

 
8

 
8

Total
51

 
$
7,609

 
$
7,645

 
 
 
 
 
 
 
2013
Commercial & industrial
11

 
$
732

 
$
732

Commercial real estate
9

 
8,100

 
8,100

Small business
12

 
556

 
556

Residential real estate
9

 
2,401

 
2,427

Home equity
17

 
1,347

 
1,347

Other consumer
9

 
27

 
27

Total
67

 
$
13,163

 
$
13,189

 
 
 
 
 
 
 
2012
Commercial & industrial
18

 
$
3,372

 
$
3,372

Commercial real estate
15

 
7,121

 
7,121

Small business
14

 
621

 
621

Residential real estate
20

 
3,495

 
3,499

Home equity
20

 
1,195

 
1,198

Other consumer
33

 
328

 
329

Total
120

 
$
16,132

 
$
16,140

(1)
The post-modification balances represent the balance of the loan on the date of modification. These amounts may show an increase when modifications include a capitalization of interest.
Schedule of Post-Modification Balance of Troubled Debt Restructuring by Type of Modification
The following table shows the Company’s post-modification balance of TDRs listed by type of modification as of the periods indicated:
 
Years Ended December 31
 
2014
 
2013
 
2012
 
(Dollars in thousands)
Extended maturity
$
3,441

 
$
3,582

 
$
5,867

Adjusted interest rate
727

 

 
2,182

Combination rate & maturity
2,640

 
8,917

 
5,007

Court ordered concession
837

 
690

 
3,084

Total
$
7,645

 
$
13,189

 
$
16,140

Schedule of Troubled Debt Restructurings Which Have 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:
 
Years Ended December 31
 
2014
 
2013
 
2012
 
Number
of Contracts
 
Recorded
Investment
 
Number
of Contracts
 
Recorded
Investment
 
Number
of Contracts
 
Recorded
Investment
 
(Dollars in thousands)
Troubled debt restructurings that subsequently defaulted
 
 
 
 
 
 
 
 
 
 
 
Commercial & industrial
2

 
$
196

 

 
$

 
1

 
$
231

Commercial real estate

 

 
1

 
176

 
3

 
696

Residential real estate
3

 
214

 

 

 
1

 
238

Other consumer

 

 
1

 
1

 

 

Total
5

 
$
410

 
2

 
$
177

 
5

 
$
1,165

Schedule of Impaired Loans by Loan Portfolio

The table below sets forth information regarding the Company’s impaired loans as of the dates indicated:
 
Years Ended December 31
 
2014
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest Income Recognized
 
(Dollars in thousands)
With no related allowance recorded
 
 
 
 
 
 
 
 
 
Commercial & industrial
$
3,005

 
$
3,278

 
$

 
$
4,557

 
$
258

Commercial real estate
15,982

 
17,164

 

 
16,703

 
1,025

Commercial construction
311

 
311

 

 
311

 
13

Small business
692

 
718

 

 
772

 
45

Residential real estate
2,439

 
2,502

 

 
2,493

 
102

Home equity
4,169

 
4,221

 

 
4,264

 
198

Other consumer
338

 
341

 

 
364

 
24

Subtotal
26,936

 
28,535

 

 
29,464

 
1,665

With an allowance recorded
 
 
 
 
 
 
 
 
 
Commercial & industrial
$
1,649

 
$
1,859

 
$
412

 
$
2,032

 
$
98

Commercial real estate
14,747

 
15,514

 
197

 
15,650

 
842

Commercial construction

 

 

 

 

Small business
396

 
458

 
7

 
456

 
32

Residential real estate
12,616

 
13,727

 
1,500

 
12,817

 
537

Home equity
1,161

 
1,264

 
262

 
1,203

 
46

Other consumer
530

 
530

 
38

 
580

 
22

Subtotal
31,099

 
33,352

 
2,416

 
32,738

 
1,577

Total
$
58,035

 
$
61,887

 
$
2,416

 
$
62,202

 
$
3,242

 
2013
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
(Dollars in thousands)
With no related allowance recorded
 
 
 
 
 
 
 
 
 
Commercial & industrial
$
7,147

 
$
7,288

 
$

 
$
7,338

 
$
338

Commercial real estate
14,283

 
15,891

 

 
15,728

 
1,075

Commercial construction
100

 
408

 

 
1,105

 
43

Small business
1,474

 
1,805

 

 
1,854

 
121

Residential real estate
1,972

 
2,026

 

 
2,021

 
95

Home equity
4,263

 
4,322

 

 
4,335

 
202

Other consumer
446

 
446

 

 
515

 
41

Subtotal
29,685

 
32,186

 

 
32,896

 
1,915

With an allowance recorded
 
 
 
 
 
 
 
 
 
Commercial & industrial
$
2,001

 
$
2,045

 
$
1,150

 
$
2,572

 
$
125

Commercial real estate
25,233

 
25,377

 
765

 
25,595

 
1,326

Commercial construction

 

 

 

 

Small business
429

 
462

 
109

 
459

 
28

Residential real estate
13,228

 
14,197

 
1,564

 
13,405

 
515

Home equity
627

 
694

 
116

 
642

 
26

Other consumer
852

 
856

 
70

 
954

 
33

Subtotal
42,370

 
43,631

 
3,774

 
43,627

 
2,053

Total
$
72,055

 
$
75,817

 
$
3,774

 
$
76,523

 
$
3,968

 
2012
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
(Dollars in thousands)
With no related allowance recorded
 
 
 
 
 
 
 
 
 
Commercial & industrial
$
5,849

 
$
7,343

 
$

 
$
6,993

 
$
391

Commercial real estate
12,999

 
13,698

 

 
13,984

 
952

Commercial construction

 

 

 

 

Small business
1,085

 
1,147

 

 
1,217

 
80

Residential real estate
2,545

 
2,630

 

 
2,589

 
118

Home equity
4,119

 
4,166

 

 
4,190

 
195

Other consumer
700

 
705

 

 
858

 
72

Subtotal
27,297

 
29,689

 

 
29,831

 
1,808

With an allowance recorded
 
 
 
 
 
 
 
 
 
Commercial & industrial
$
2,726

 
$
2,851

 
$
1,084

 
$
2,883

 
$
143

Commercial real estate
20,869

 
21,438

 
516

 
21,678

 
1,340

Commercial construction

 

 

 

 

Small business
1,194

 
1,228

 
353

 
1,255

 
77

Residential real estate
12,828

 
13,601

 
1,302

 
13,014

 
560

Home equity
316

 
389

 
35

 
324

 
23

Other consumer
1,429

 
1,453

 
130

 
1,610

 
60

Subtotal
39,362

 
40,960

 
3,420

 
40,764

 
2,203

Total
$
66,659

 
$
70,649

 
$
3,420

 
$
70,595

 
$
4,011

Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Table Text Block]
The following is a summary of these PCI loans associated with the acquisition as of the date acquired:
 
 
(Dollars in thousands)
Contractually required principal and interest at acquisition
 
$
47,548

Contractual cash flows not expected to be collected
 
(8,733
)
Expected cash flows at acquisition
 
38,815

Interest component of expected cash flows
 
(3,095
)
Basis in PCI loans at acquisition - estimated fair value
 
$
35,720

The following tables display certain information pertaining to purchased credit impaired loans at the dates indicated:
 
 
Mayflower Acquisition
 Central Acquisition
 
 
November 15, 2013
November 9, 2012
 
 
(Dollars in thousands)
Contractually required principal and interest payments receivable
(1)
$
4,440

$
47,548

Less: expected cash flows
(1)
3,144

38,815

Initial nonaccretable difference
 
$
1,296

$
8,733

 
 
 
 
Expected cash flows
(1)
$
3,144

$
38,815

Less: fair value (initial carrying amount)
 
2,758

35,720

Accretable Yield
 
$
386

$
3,095

(1) Reflective of anticipated prepayments.
 
 
December 31
 
 
2014
2013
 
 
(Dollars in thousands)
 
 
 
 
Outstanding balance
 
$
25,279

$
33,555

Carrying amount
 
$
22,315

$
29,544

Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Table Text Block]
The following table summarizes activity in the accretable yield for the PCI loan portfolio:
 
 
2014
 
2013
 
 
(Dollars in thousands)
Beginning balance
 
$
2,514

 
$
2,464

Acquisition
 

 
386

Accretion
 
(2,299
)
 
(1,812
)
Other change in expected cash flows (1)
 
2,565

 
1,142

Reclassification from nonaccretable difference for loans which have paid off (2)
 
194

 
334

Ending balance
 
$
2,974

 
$
2,514


(1)
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).
(2)
Results in increased income during the period when a loan pays off at amount greater than originally expected.
Schedule of Loans to Insiders
Annual activity consists of the following at the periods indicated:
 
2014
 
2013
 
(Dollars in thousands)
Principal balance of loans outstanding at beginning of year
$
52,510

 
$
47,859

Loan advances
21,310

 
107,461

Loan payments/payoffs
(21,913
)
 
(102,810
)
Reduction for former directors (1)
(25,913
)
 

Principal balance of loans outstanding at end of year
$
25,994

 
$
52,510

(1) Amounts relate to loans to individuals who are no longer current directors of the Company and therefore are not deemed to be an insider.