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LOANS, ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (Tables)
12 Months Ended
Dec. 31, 2016
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, 2016
 

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
$
13,802

 
$
27,327

 
$
5,366

 
$
1,264

 
$
2,590

 
$
4,889

 
$
587

 
$
55,825

  
Charge-offs
(593
)
 
(414
)
 

 
(228
)
 
(28
)
 
(602
)
 
(1,607
)
 
(3,472
)
  
Recoveries
859

 
564

 

 
195

 
299

 
141

 
1,080

 
3,138

  
Provision (benefit)
2,853

 
2,892

 
(844
)
 
271

 
(240
)
 
810

 
333

 
6,075

  
Ending balance
$
16,921

 
$
30,369

 
$
4,522

 
$
1,502

 
$
2,621

 
$
5,238

 
$
393

 
$
61,566

  
Ending balance: collectively evaluated for impairment
$
13,260

 
$
30,173

 
$
4,522

 
$
1,494

 
$
1,535

 
$
4,996

 
$
372

 
$
56,352

  
Ending balance: individually evaluated for impairment
$
3,661

 
$
196

 
$

 
$
8

 
$
1,086

 
$
242

 
$
21

 
$
5,214

  
Financing receivables ending balance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment
$
862,875

 
$
2,983,642

 
$
320,391

 
$
121,855

 
$
622,392

 
$
982,095

 
$
10,666

 
$
5,903,916

 
Individually evaluated for impairment
39,178

 
16,813

 

 
871

 
14,175

 
5,863

 
397

 
77,297

  
Purchased credit impaired loans

 
10,343

 

 

 
7,859

 
189

 
1

 
18,392

 
Total loans by group
$
902,053

 
$
3,010,798

 
$
320,391

 
$
122,726

 
$
644,426

 
$
988,147

 
$
11,064

 
$
5,999,605

(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
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
$
15,573

 
$
25,873

 
$
3,945

 
$
1,171

 
$
2,834

 
$
4,956

 
$
748

 
$
55,100

  
Charge-offs
(2,010
)
 
(330
)
 

 
(267
)
 
(285
)
 
(710
)
 
(1,316
)
 
(4,918
)
  
Recoveries
1,593

 
1,073

 

 
264

 
133

 
356

 
724

 
4,143

  
Provision (benefit)
$
(1,354
)
 
$
711

 
$
1,421

 
$
96

 
$
(92
)
 
$
287

 
$
431

 
$
1,500

  
Ending balance
$
13,802

 
$
27,327

 
$
5,366

 
$
1,264

 
$
2,590

 
$
4,889

 
$
587

 
$
55,825

  
Ending balance: collectively evaluated for impairment
$
13,619

 
$
27,123

 
$
5,366

 
$
1,260

 
$
1,312

 
$
4,651

 
$
564

 
$
53,895

  
Ending balance: individually evaluated for impairment
$
183

 
$
204

 
$

 
$
4

 
$
1,278

 
$
238

 
$
23

 
$
1,930

  
Financing receivables ending balance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment
$
838,129

 
$
2,619,294

 
$
373,064

 
$
95,225

 
$
614,014

 
$
921,563

 
$
14,427

 
$
5,475,716

  
Individually evaluated for impairment
5,147

 
22,986

 
304

 
1,021

 
15,405

 
5,989

 
558

 
51,410

  
Purchased credit impaired loans

 
11,154

 

 

 
9,187

 
251

 
3

 
20,595

 
Total loans by group
$
843,276

 
$
2,653,434

 
$
373,368

 
$
96,246

 
$
638,606

 
$
927,803

 
$
14,988

 
$
5,547,721

(1)
 
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:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment
$
856,185

 
$
2,304,099

 
$
265,501

 
$
84,159

 
$
505,799

 
$
858,305

 
$
16,335

 
$
4,890,383

  
Individually evaluated for impairment
4,654

 
30,729

 
311

 
1,088

 
15,055

 
5,330

 
868

 
58,035

  
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)
(1)
The amount of net deferred costs on originated loans included in the ending balance was $5.1 million, $4.3 million, and $2.8 million at December 31, 2016, 2015, and 2014, respectively. Net unamortized discounts on acquired loans not deemed to be PCI included in the ending balance was $8.6 million, $6.6 million, and $1.9 million at December 31, 2016, 2015, and 2014, respectively.
Schedule of Internal Risk-Rating Categories for the Company's Commercial Portfolio
The following table details the amount of outstanding principal balances relative to each of the risk-rating categories for the Company’s commercial portfolio:
 
 
 
December 31, 2016
Category
Risk
Rating
 
Commercial and
Industrial
 
Commercial Real
Estate
 
Commercial
Construction
 
Small Business
 
Total
 
 
 
(Dollars in thousands)
Pass
1 - 6
 
$
783,825

 
$
2,876,570

 
$
317,099

 
$
120,304

 
$
4,097,798

Potential weakness
7
 
46,176

 
84,641

 
1,363

 
1,859

 
134,039

Definite weakness - loss unlikely
8
 
71,991

 
47,164

 
1,929

 
556

 
121,640

Partial loss probable
9
 
61

 
2,423

 

 
7

 
2,491

Definite loss
10
 

 

 

 

 

Total
 
 
$
902,053

 
$
3,010,798

 
$
320,391

 
$
122,726

 
$
4,355,968

 
 
 
December 31, 2015
Category
Risk
Rating
 
Commercial and
Industrial
 
Commercial Real
Estate
 
Commercial
Construction
 
Small Business
 
Total
 
 
 
(Dollars in thousands)
Pass
1 - 6
 
$
765,753

 
$
2,484,025

 
$
363,781

 
$
93,008

 
$
3,706,567

Potential weakness
7
 
54,375

 
112,022

 
7,678

 
2,444

 
176,519

Definite weakness - loss unlikely
8
 
23,073

 
56,276

 
1,909

 
732

 
81,990

Partial loss probable
9
 
75

 
1,111

 

 
62

 
1,248

Definite loss
10
 

 

 

 

 

Total
 
 
$
843,276

 
$
2,653,434

 
$
373,368

 
$
96,246

 
$
3,966,324

Schedule of Weighted Average FICO Scores and 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:
 
December 31
 
2016
 
2015
Residential portfolio
 
 
 
FICO score (re-scored)(1)
743

 
742

LTV (re-valued)(2)
63.2
%
 
61.4
%
Home equity portfolio
 
 
 
FICO score (re-scored)(1)
767

 
765

LTV (re-valued)(2)
55.9
%
 
55.8
%
(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, 2016 and 2015 are based upon updated automated valuations as of March 31, 2015 and original valuation data for loans booked from April 1, 2015 through the dates indicated. 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.
Schedule of Nonaccrual Loans
The following table shows nonaccrual loans at the dates indicated:
 
December 31
 
2016
 
2015
 
(Dollars in thousands)
Commercial and industrial (1)
$
37,455

 
$
3,699

Commercial real estate
6,266

 
7,856

Commercial construction

 
304

Small business
302

 
239

Residential real estate
7,782

 
8,795

Home equity
5,553

 
6,742

Other consumer
47

 
55

Total nonaccrual loans (2)
$
57,405

 
$
27,690


(1)
$34.6 million of this balance relates to one large relationship that was contractually current but instead placed on discretionary nonaccrual as of December 31, 2016.
(2)
Included in these amounts were $5.2 million of nonaccruing TDRs at both December 31, 2016 and 2015, respectively.
Foreclosed Residential Real Estate Property [Table Text Block]
The following table shows information regarding foreclosed residential real estate property at the date indicated:
 
December 31, 2016
 
December 31, 2015
 
(Dollars in thousands)
Foreclosed residential real estate property held by the creditor
$
3,775

(1)
$
1,430

Recorded investment in mortgage loans collateralized by residential real estate property that are in the process of foreclosure
$
1,715

 
$
1,059


(1) Inclusive of acquired other real estate owned of $2.1 million relating to the NEB acquisition.

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, 2016
 
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
8

 
$
100

 
32

 
$
253

 
6

 
$
2,480

 
46

 
$
2,833

 
$
899,220

 
$
902,053

 
$

Commercial real estate
5

 
1,518

 
8

 
1,957

 
8

 
3,105

 
21

 
6,580

 
3,004,218

 
3,010,798

 

Commercial construction

 

 

 

 

 

 

 

 
320,391

 
320,391

 

Small business
9

 
323

 

 

 
19

 
140

 
28

 
463

 
122,263

 
122,726

 

Residential real estate
11

 
1,277

 
9

 
1,950

 
27

 
3,507

 
47

 
6,734

 
637,692

 
644,426

 

Home equity
19

 
1,117

 
11

 
767

 
16

 
1,209

 
46

 
3,093

 
985,054

 
988,147

 

Other consumer (1)
249

 
184

 
12

 
17

 
15

 
7

 
276

 
208

 
10,856

 
11,064

 
2

Total
301

 
$
4,519

 
72

 
$
4,944

 
91

 
$
10,448

 
464

 
$
19,911

 
$
5,979,694

 
$
5,999,605

 
$
2


 
December 31, 2015
 
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

 
$
399

 
4

 
$
1,021

 
8

 
$
3,039

 
21

 
$
4,459

 
$
838,817

 
$
843,276

 
$

Commercial real estate
19

 
7,349

 
6

 
1,627

 
13

 
4,458

 
38

 
13,434

 
2,640,000

 
2,653,434

 

Commercial construction

 

 

 

 
1

 
304

 
1

 
304

 
373,064

 
373,368

 

Small business
11

 
93

 
4

 
9

 
13

 
69

 
28

 
171

 
96,075

 
96,246

 

Residential real estate
20

 
3,119

 
11

 
2,049

 
19

 
3,433

 
50

 
8,601

 
630,005

 
638,606

 

Home equity
21

 
1,526

 
11

 
903

 
20

 
1,338

 
52

 
3,767

 
924,036

 
927,803

 

Other consumer (1)
297

 
231

 
12

 
65

 
13

 
25

 
322

 
321

 
14,667

 
14,988

 

Total
377

 
$
12,717

 
48

 
$
5,674

 
87

 
$
12,666

 
512

 
$
31,057

 
$
5,516,664

 
$
5,547,721

 
$



(1) Other consumer portfolio is inclusive of deposit account overdrafts recorded as loan balances.
Schedule 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:
 
December 31
 
2016
 
2015
 
(Dollars in thousands)
TDRs on accrual status
$
27,093

 
$
32,849

TDRs on nonaccrual status
5,199

 
5,225

Total TDRs
$
32,292

 
$
38,074

Amount of specific reserves included in the allowance for loan loss associated with TDRs:
$
1,417

 
$
1,628

Additional commitments to lend to a borrower who has been a party to a TDR:
$
1,378

 
$
972

Schedule of Troubled Debt Restructuring 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:
 
Years Ended December 31
 
2016
 
Number
of Contracts
 
Pre-Modification
Outstanding Recorded
Investment
 
Post-Modification
Outstanding Recorded
Investment(1)
 
(Dollars in thousands)
Troubled debt restructurings
 
 
 
 
 
Commercial and industrial
10

 
$
1,623

 
$
1,623

Commercial real estate
10

 
2,959

 
2,959

Small business
3

 
188

 
188

Residential real estate
8

 
1,808

 
1,850

Home equity
13

 
932

 
932

Other consumer
6

 
153

 
153

Total
50

 
$
7,663

 
$
7,705

 
 
 
 
 
 
 
2015
Troubled debt restructurings
 
 
 
 
 
Commercial and industrial
13

 
$
1,314

 
$
1,314

Commercial real estate
6

 
2,941

 
2,941

Small business
9

 
293

 
293

Residential real estate
8

 
843

 
870

Home equity
8

 
694

 
694

Total
44

 
$
6,085

 
$
6,112

 
 
 
 
 
 
 
2014
Troubled debt restructurings
 
 
 
 
 
Commercial and 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

(1)
The post-modification balances represent the legal principal 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
 
2016
 
2015
 
2014
 
(Dollars in thousands)
Extended maturity
$
5,044

 
$
2,936

 
$
3,441

Adjusted interest rate
92

 

 
727

Combination rate and maturity
1,035

 
2,199

 
2,640

Court ordered concession
1,534

 
977

 
837

Total
$
7,705

 
$
6,112

 
$
7,645

Schedule of Troubled Debt Restructurings Which Have Subsequently Defaulted
The Company considers a loan to have defaulted when it reaches 90 days past due. The following table shows loans that were modified during the prior twelve months and subsequently defaulted during the periods indicated:
 
Years Ended December 31
 
2016
 
2015
 
2014
 
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

 
$

 
3

 
$
339

 
2

 
$
196

Commercial real estate
1

 
249

 
1

 
502

 

 

Residential real estate

 

 
2

 
326

 
3

 
214

Home equity

 

 
1

 
100

 

 

Total
1

 
$
249

 
7

 
$
1,267

 
5

 
$
410

Schedule of Impaired Loans by Loan Portfolio

The table below sets forth information regarding the Company’s impaired loans. The information for average recorded investment and interest income recognized is reflective of the full period being presented and does not take into account the date at which a loan was deemed to be impaired. See information below as of the dates indicated:
 
As of and For the Years Ended December 31
 
2016
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest Income Recognized
 
(Dollars in thousands)
With no related allowance recorded
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
28,776

 
$
29,772

 
$

 
$
26,472

 
$
927

Commercial real estate
11,628

 
12,891

 

 
12,744

 
437

Small business
494

 
569

 

 
534

 
20

Residential real estate
4,216

 
4,427

 

 
4,302

 
185

Home equity
4,485

 
4,572

 

 
4,602

 
184

Other consumer
146

 
146

 

 
160

 
11

Subtotal
49,745

 
52,377

 

 
48,814

 
1,764

With an allowance recorded
 
 
 
 
 
 
 
 
 
Commercial and industrial
10,402

 
10,440

 
3,661

 
10,760

 
325

Commercial real estate
5,185

 
5,533

 
196

 
5,491

 
200

Small business
377

 
392

 
8

 
408

 
21

Residential real estate
9,959

 
10,530

 
1,086

 
10,065

 
332

Home equity
1,378

 
1,547

 
242

 
1,403

 
50

Other consumer
251

 
252

 
21

 
268

 
8

Subtotal
27,552

 
28,694

 
5,214

 
28,395

 
936

Total
$
77,297

 
$
81,071

 
$
5,214

 
$
77,209

 
$
2,700

 
2015
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
(Dollars in thousands)
With no related allowance recorded
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
2,613

 
$
3,002

 
$

 
$
3,024

 
$
71

Commercial real estate
12,008

 
13,128

 

 
11,676

 
375

Commercial construction
304

 
305

 

 
308

 

Small business
527

 
618

 

 
584

 
22

Residential real estate
3,874

 
4,033

 

 
3,958

 
157

Home equity
4,893

 
5,005

 

 
5,023

 
195

Other consumer
184

 
185

 

 
201

 
15

Subtotal
24,403

 
26,276

 

 
24,774

 
835

With an allowance recorded
 
 
 
 
 
 
 
 
 
Commercial and industrial
2,534

 
2,648

 
183

 
2,848

 
48

Commercial real estate
10,978

 
11,047

 
204

 
10,789

 
592

Small business
494

 
523

 
4

 
535

 
30

Residential real estate
11,531

 
12,652

 
1,278

 
11,669

 
460

Home equity
1,096

 
1,287

 
238

 
655

 
14

Other consumer
374

 
389

 
23

 
408

 
14

Subtotal
27,007

 
28,546

 
1,930

 
26,904

 
1,158

Total
$
51,410

 
$
54,822

 
$
1,930

 
$
51,678

 
$
1,993

 
2014
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
(Dollars in thousands)
With no related allowance recorded
 
 
 
 
 
 
 
 
 
Commercial and 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 and industrial
1,649

 
1,859

 
412

 
2,032

 
98

Commercial real estate
14,747

 
15,514

 
197

 
15,650

 
842

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

Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Table Text Block]
he following table displays certain information pertaining to PCI loans at the dates indicated:
 
 
December 31
 
 
2016
 
2015
 
 
(Dollars in thousands)
Outstanding balance
 
$
20,477

 
$
23,199

Carrying amount
 
$
18,392

 
$
20,595

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:
 
 
2016
 
2015
 
 
(Dollars in thousands)
Beginning balance
 
$
2,827

 
$
2,974

Acquisition
 

 
319

Accretion
 
(1,540
)
 
(2,485
)
Other change in expected cash flows (1)
 
953

 
1,721

Reclassification from nonaccretable difference for loans which have paid off (2)
 
130

 
298

Ending balance
 
$
2,370

 
$
2,827


(1)
Represents changes in cash flows expected to be collected 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.