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

9 Months Ended

Sep. 30, 2018

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

Tabular disclosure of financing receivables bifurcated by type of impairment evaluation [Table Text Block]

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

	September 30, 2018
	(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:
Collectively evaluated for impairment	$	972,842	$	3,114,414	$	352,491	$	148,609	$	784,533	$	1,067,389	$	13,425	$	6,453,703
Individually evaluated for impairment	$	30,938	$	13,023	$	—	$	591	$	12,825	$	6,410	$	244	$	64,031
Purchased credit impaired loans	$	—	$	5,054	$	—	$	—	$	4,452	$	162	$	—	$	9,668
Total loans by group	$	1,003,780	$	3,132,491	$	352,491	$	149,200	$	801,810	$	1,073,961	$	13,669	$	6,527,402	(1	)

	December 31, 2017
	(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:
Collectively evaluated for impairment	$	853,885	$	3,093,945	$	401,797	$	131,667	$	733,809	$	1,045,053	$	9,573	$	6,269,729
Individually evaluated for impairment	$	34,643	$	16,638	$	—	$	703	$	13,684	$	6,826	$	307	$	72,801
Purchased credit impaired loans	$	—	$	5,978	$	—	$	—	$	6,836	$	209	$	—	$	13,023
Total loans by group	$	888,528	$	3,116,561	$	401,797	$	132,370	$	754,329	$	1,052,088	$	9,880	$	6,355,553	(1	)

 

(1)

The amount of net deferred costs on originated loans included in the ending balance was $6.9 million and $6.1 million at September 30, 2018 and December 31, 2017, respectively. Net unamortized discounts on acquired loans not deemed to be purchased credit impaired ("PCI") included in the ending balance was $8.6 million and $9.4 million at September 30, 2018 and December 31, 2017, 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, 2018
	(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	$	14,788		$	32,095		$	5,216		$	1,709		$	2,909		$	5,468		$	372		$	62,557
Charge-offs	(218		)	(82		)	—			(111		)	—			(87		)	(349		)	(847		)
Recoveries	108			29			—			10			9			71			223			450
Provision (benefit)	430			226			(189		)	160			153			102			193			1,075
Ending balance	$	15,108		$	32,268		$	5,027		$	1,768		$	3,071		$	5,554		$	439		$	63,235
	Three Months Ended September 30, 2017
	(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	$	13,544		$	30,947		$	4,814		$	1,613		$	2,693		$	5,353		$	515		$	59,479
Charge-offs	(124		)	—			—			(164		)	(43		)	(81		)	(405		)	(817		)
Recoveries	404			286			—			17			15			65			261			1,048
Provision (benefit)	(994		)	(233		)	806			140			111			89			81			—
Ending balance	$	12,830		$	31,000		$	5,620		$	1,606		$	2,776		$	5,426		$	452		$	59,710

	Nine Months Ended September 30, 2018
	(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	$	13,256		$	31,453		$	5,698		$	1,577		$	2,822		$	5,390		$	447		$	60,643
Charge-offs	(355		)	(82		)	—			(237		)	(148		)	(261		)	(926		)	(2,009		)
Recoveries	179			67			—			29			12			128			611			1,026
Provision (benefit)	2,028			830			(671		)	399			385			297			307			3,575
Ending balance	$	15,108		$	32,268		$	5,027		$	1,768		$	3,071		$	5,554		$	439		$	63,235
Ending balance: collectively evaluated for impairment	$	15,101		$	32,234		$	5,027		$	1,767		$	2,197		$	5,386		$	426		$	62,138
Ending balance: individually evaluated for impairment	$	7		$	34		$	—		$	1		$	874		$	168		$	13		$	1,097
	Nine Months Ended September 30, 2017
	(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	$	16,921		$	30,369		$	4,522		$	1,502		$	2,621		$	5,238		$	393		$	61,566
Charge-offs	(3,715		)	—			—			(258		)	(182		)	(217		)	(1,151		)	(5,523		)
Recoveries	604			343			—			96			29			167			778			2,017
Provision (benefit)	(980		)	288			1,098			266			308			238			432			1,650
Ending balance	$	12,830		$	31,000		$	5,620		$	1,606		$	2,776		$	5,426		$	452		$	59,710
Ending balance: collectively evaluated for impairment	$	12,759		$	30,951		$	5,620		$	1,605		$	1,756		$	5,169		$	433		$	58,293
Ending balance: individually evaluated for impairment	$	71		$	49		$	—		$	1		$	1,020		$	257		$	19		$	1,417

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

The following tables detail the amount of outstanding principal balances relative to each of the risk-rating categories for the Company’s commercial portfolio:

		September 30, 2018
Category	Risk Rating	Commercial  and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Total
		(Dollars in thousands)
Pass	1 - 6	$	935,769	$	3,041,551	$	352,190	$	146,809	$	4,476,319
Potential weakness	7	17,655		52,089		301		1,053		71,098
Definite weakness-loss unlikely	8	45,399		38,453		—		1,338		85,190
Partial loss probable	9	4,957		398		—		—		5,355
Definite loss	10	—		—		—		—		—
Total		$	1,003,780	$	3,132,491	$	352,491	$	149,200	$	4,637,962

		December 31, 2017
Category	Risk Rating	Commercial  and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Total
		(Dollars in thousands)
Pass	1 - 6	$	806,331	$	3,007,672	$	400,964	$	130,265	$	4,345,232
Potential weakness	7	16,563		69,788		—		1,471		87,822
Definite weakness-loss unlikely	8	59,415		38,637		833		631		99,516
Partial loss probable	9	6,219		464		—		3		6,686
Definite loss	10	—		—		—		—		—
Total		$	888,528	$	3,116,561	$	401,797	$	132,370	$	4,539,256

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, 2018		December 31, 2017
Residential portfolio
FICO score (re-scored)(1)	748		745
LTV (re-valued)(2)	58.2	%	59.2	%
Home equity portfolio
FICO score (re-scored)(1)	767		766
LTV (re-valued)(2)(3)	48.9	%	50.1	%

 

(1) The average FICO scores at September 30, 2018 are based upon rescores available from August 2018 and origination score data for loans booked in September 2018. The average FICO scores at December 31, 2017 are based upon rescores available from August 2017 and origination score data for loans booked between September and December 2017.

(2) The combined LTV ratios for September 30, 2018 are based upon updated automated valuations as of August 2018, when available or the most current valuation data available. The combined LTV ratios for December 31, 2017 are based upon updated automated valuations as of August 2017, when available, or the most current valuation data available. The updated automated valuations provide new information on loans that may be available since the previous valuation was obtained. If no new information is available, the valuation will default to the previously obtained data or most recent appraisal.

(3)

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 information regarding nonaccrual loans at the dates indicated:

	September 30, 2018		December 31, 2017
	(Dollars in thousands)
Commercial and industrial	$	28,742	$	32,055
Commercial real estate	1,960		3,123
Small business	191		230
Residential real estate	8,076		8,129
Home equity	6,367		6,022
Other consumer	49		71
Total nonaccrual loans (1)	$	45,385	$	49,630

(1)Included in these amounts were $3.4 million and $6.1 million of nonaccruing TDRs at September 30, 2018 and December 31, 2017, respectively.

Foreclosed Residential Real Estate Property [Table Text Block]

The following table shows information regarding foreclosed residential real estate property at the dates indicated:

	September 30, 2018		December 31, 2017
	(Dollars in thousands)
Foreclosed residential real estate property held by the creditor	$	190	$	612
Recorded investment in mortgage loans collateralized by residential real estate property that are in the process of foreclosure	$	3,880	$	2,971

Age analysis of past due financing receivables

The following tables show the age analysis of past due financing receivables as of the dates indicated:

	September 30, 2018
	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	3	$	265	5	$	431	10	$	28,694	18	$	29,390	$	974,390	$	1,003,780	$	—
Commercial real estate	7	2,188		5	849		6	1,430		18	4,467		3,128,024		3,132,491		—
Commercial construction	—	—		—	—		—	—		—	—		352,491		352,491		—
Small business	9	483		6	60		17	139		32	682		148,518		149,200		—
Residential real estate	10	1,129		12	2,367		19	3,367		41	6,863		794,947		801,810		—
Home equity	16	909		9	797		25	2,825		50	4,531		1,069,430		1,073,961		—
Other consumer (1)	272	118		8	20		13	46		293	184		13,485		13,669		9
Total	317	$	5,092	45	$	4,524	90	$	36,501	452	$	46,117	$	6,481,285	$	6,527,402	$	9

	December 31, 2017
	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	2	$	195	2	$	370	14	$	32,007	18	$	32,572	$	855,956	$	888,528	$	—
Commercial real estate	7	3,060		—	—		9	1,793		16	4,853		3,111,708		3,116,561		—
Commercial construction	—	—		—	—		—	—		—	—		401,797		401,797		—
Small business	17	339		11	144		10	57		38	540		131,830		132,370		—
Residential real estate	6	870		13	2,385		22	3,471		41	6,726		747,603		754,329		—
Home equity	22	1,310		6	451		20	2,025		48	3,786		1,048,302		1,052,088		—
Other consumer (1)	265	197		16	27		17	45		298	269		9,611		9,880		8
Total	319	$	5,971	48	$	3,377	92	$	39,398	459	$	48,746	$	6,306,807	$	6,355,553	$	8

(1) Other consumer portfolio is inclusive of deposit account overdrafts recorded as loan balances.

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, 2018		December 31, 2017
	(Dollars in thousands)
TDRs on accrual status	$	24,554	$	25,852
TDRs on nonaccrual	3,370		6,067
Total TDRs	$	27,924	$	31,919
Amount of specific reserves included in the allowance for loan losses associated with TDRs	$	1,097	$	1,342
Additional commitments to lend to a borrower who has been a party to a TDR	$	1,224	$	487

Change in investment recorded subsequent to modifications

The following tables show 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, 2018					September 30, 2018
	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 and industrial	2	$	126	$	126	2	$	126	$	126
Commercial real estate	1	205		205		2	650		650
Residential real estate	3	503		523		4	652		672
Home equity	2	74		74		8	546		546
Total	8	$	908	$	928	16	$	1,974	$	1,994

 

	Three Months Ended					Nine Months Ended
	September 30, 2017					September 30, 2017
	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 and industrial	1	$	196	$	196	9	$	1,575	$	1,575
Commercial real estate	—	—		—		6	1,884		1,884
Small business	2	183		183		10	447		447
Residential real estate	—	—		—		5	889		900
Home equity	4	436		436		14	1,427		1,430
Total	7	$	815	$	815	44	$	6,222	$	6,236

 

(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.

Post modification balance of Troubled Debt Restructuring

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

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2018		2017		2018		2017
	(Dollars in thousands)				(Dollars in thousands)
Extended maturity	$	617	$	486	$	1,062	$	4,565
Combination rate and maturity	237		196		237		196
Court ordered concession	74		133		695		1,475
Total	$	928	$	815	$	1,994	$	6,236

Impaired loans by loan portfolio

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

	September 30, 2018
	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Dollars in thousands)
With no related allowance recorded
Commercial and industrial	$	30,618	$	38,297	$	—
Commercial real estate	11,329		11,962		—
Small business	445		523		—
Residential real estate	4,783		4,925		—
Home equity	4,973		5,181		—
Other consumer	60		61		—
Subtotal	52,208		60,949		—
With an allowance recorded
Commercial and industrial	$	320	$	320	$	7
Commercial real estate	1,694		1,694		34
Small business	146		152		1
Residential real estate	8,042		8,921		874
Home equity	1,437		1,620		168
Other consumer	184		187		13
Subtotal	11,823		12,894		1,097
Total	$	64,031	$	73,843	$	1,097

	December 31, 2017
	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Dollars in thousands)
With no related allowance recorded
Commercial and industrial	$	34,267	$	38,329	$	—
Commercial real estate	13,245		14,374		—
Small business	556		619		—
Residential real estate	4,264		4,397		—
Home equity	4,950		5,056		—
Other consumer	91		92		—
Subtotal	57,373		62,867		—
With an allowance recorded
Commercial and industrial	$	376	$	376	$	10
Commercial real estate	3,393		3,399		42
Small business	147		153		1
Residential real estate	9,420		10,154		1,007
Home equity	1,876		2,110		265
Other consumer	216		217		17
Subtotal	15,428		16,409		1,342
Total	$	72,801	$	79,276	$	1,342

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, 2018				September 30, 2018
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
With no related allowance recorded
Commercial and industrial	$	31,376	$	28	$	32,424	$	89
Commercial real estate	12,040		135		12,423		428
Small business	432		4		478		13
Residential real estate	4,798		56		4,826		173
Home equity	5,078		58		5,185		168
Other consumer	62		1		66		3
Subtotal	53,786		282		55,402		874
With an allowance recorded
Commercial and industrial	$	324	$	4	$	330	$	11
Commercial real estate	1,701		24		1,715		71
Small business	148		3		154		8
Residential real estate	8,057		69		8,194		207
Home equity	1,453		14		1,467		39
Other consumer	187		1		194		4
Subtotal	11,870		115		12,054		340
Total	$	65,656	$	397	$	67,456	$	1,214

	Three Months Ended				Nine Months Ended
	September 30, 2017				September 30, 2017
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
With no related allowance recorded
Commercial and industrial	$	33,935	$	18	$	36,329	$	179
Commercial real estate	14,569		151		14,798		460
Small business	682		5		702		17
Residential real estate	3,928		51		3,962		152
Home equity	4,883		50		4,935		146
Other consumer	99		2		104		5
Subtotal	58,096		277		60,830		959
With an allowance recorded
Commercial and industrial	$	1,698	$	21	$	1,768	$	65
Commercial real estate	4,569		65		4,599		195
Small business	305		3		315		11
Residential real estate	9,752		79		9,838		234
Home equity	1,765		14		1,782		41
Other consumer	229		2		237		5
Subtotal	18,318		184		18,539		551
Total	$	76,414	$	461	$	79,369	$	1,510

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

The following table displays certain information pertaining to PCI loans at the dates indicated:

	September 30, 2018		December 31, 2017
	(Dollars in thousands)
Outstanding balance	$	10,725	$	14,485
Carrying amount	$	9,668	$	13,023

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:

	Three Months Ended September 30						Nine Months Ended September 30
	2018			2017			2018			2017
	(Dollars in thousands)
Beginning balance	$	1,604		$	2,185		$	1,791		$	2,370
Accretion	(518		)	(359		)	(931		)	(968		)
Other change in expected cash flows (1)	104			167			308			573
Reclassification from nonaccretable difference for loans which have paid off (2)	203			70			225			88
Ending balance	$	1,393		$	2,063		$	1,393		$	2,063

(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 interest income during the period in which the loan paid off at amount greater than originally expected.