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

6 Months Ended

Jun. 30, 2019

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:

	June 30, 2019
	(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	$	1,373,573	$	4,042,092	$	491,598	$	173,397	$	1,636,033	$	1,137,736	$	26,083	$	8,880,512
Individually evaluated for impairment	$	27,351	$	9,069	$	—	$	530	$	11,351	$	5,689	$	173	$	54,163
Purchased credit impaired loans	$	—	$	6,905	$	—	$	—	$	7,798	$	1,074	$	335	$	16,112
Total loans by group	$	1,400,924	$	4,058,066	$	491,598	$	173,927	$	1,655,182	$	1,144,499	$	26,591	$	8,950,787	(1	)

	December 31, 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	$	1,064,800	$	3,235,418	$	365,165	$	164,135	$	906,959	$	1,085,961	$	15,901	$	6,838,339
Individually evaluated for impairment	$	28,829	$	10,839	$	—	$	541	$	12,706	$	5,948	$	197	$	59,060
Purchased credit impaired loans	$	—	$	4,991	$	—	$	—	$	3,629	$	175	$	—	$	8,795
Total loans by group	$	1,093,629	$	3,251,248	$	365,165	$	164,676	$	923,294	$	1,092,084	$	16,098	$	6,906,194	(1	)

 

(1)

The amount of net deferred costs on originated loans included in the ending balance was $7.9 million and $7.1 million at June 30, 2019 and December 31, 2018, respectively. Net unamortized discounts on acquired loans not deemed to be purchased credit impaired ("PCI") included in the ending balance was $29.8 million and $15.2 million at June 30, 2019 and December 31, 2018, 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 June 30, 2019
	(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	$	16,872		$	32,049	$	5,355		$	1,784		$	3,234		$	5,507		$	339		$	65,140
Charge-offs	—			—		—			(49		)	—			(71		)	(352		)	(472		)
Recoveries	—			13		—			20			—			18			241			292
Provision (benefit)	(15		)	598		238			13			62			93			11			1,000
Ending balance	$	16,857		$	32,660	$	5,593		$	1,768		$	3,296		$	5,547		$	239		$	65,960
	Three Months Ended June 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	$	13,533		$	31,459	$	5,679		$	1,593		$	2,837		$	5,359		$	402		$	60,862
Charge-offs	(4		)	—		—			(102		)	(109		)	(95		)	(259		)	(569		)
Recoveries	59			18		—			10			1			23			153			264
Provision (benefit)	1,200			618		(463		)	208			180			181			76			2,000
Ending balance	$	14,788		$	32,095	$	5,216		$	1,709		$	2,909		$	5,468		$	372		$	62,557

	Six Months Ended June 30, 2019
	(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	$	15,760		$	32,370	$	5,158		$	1,756		$	3,219		$	5,608		$	422		$	64,293
Charge-offs	—			—		—			(194		)	—			(184		)	(653		)	(1,031		)
Recoveries	124			46		—			47			1			84			396			698
Provision (benefit)	973			244		435			159			76			39			74			2,000
Ending balance	$	16,857		$	32,660	$	5,593		$	1,768		$	3,296		$	5,547		$	239		$	65,960
Ending balance: collectively evaluated for impairment	$	16,850		$	32,586	$	5,593		$	1,730		$	2,507		$	5,388		$	233		$	64,887
Ending balance: individually evaluated for impairment	$	7		$	74	$	—		$	38		$	789		$	159		$	6		$	1,073
	Six Months Ended June 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	(137		)	—		—			(126		)	(148		)	(174		)	(577		)	(1,162		)
Recoveries	71			38		—			19			3			57			388			576
Provision (benefit)	1,598			604		(482		)	239			232			195			114			2,500
Ending balance	$	14,788		$	32,095	$	5,216		$	1,709		$	2,909		$	5,468		$	372		$	62,557
Ending balance: collectively evaluated for impairment	$	14,780		$	32,021	$	5,216		$	1,708		$	2,050		$	5,237		$	358		$	61,370
Ending balance: individually evaluated for impairment	$	8		$	74	$	—		$	1		$	859		$	231		$	14		$	1,187

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:

		June 30, 2019
Category	Risk Rating	Commercial  and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Total
		(Dollars in thousands)
Pass	1 - 6	$	1,279,778	$	3,917,266	$	486,775	$	170,247	$	5,854,066
Potential weakness	7	61,051		103,537		2,883		1,533		169,004
Definite weakness-loss unlikely	8	60,095		37,263		1,940		2,147		101,445
Partial loss probable	9	—		—		—		—		—
Definite loss	10	—		—		—		—		—
Total		$	1,400,924	$	4,058,066	$	491,598	$	173,927	$	6,124,515

		December 31, 2018
Category	Risk Rating	Commercial  and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Total
		(Dollars in thousands)
Pass	1 - 6	$	1,014,370	$	3,156,989	$	361,884	$	161,851	$	4,695,094
Potential weakness	7	16,860		56,840		298		888		74,886
Definite weakness-loss unlikely	8	58,909		37,419		2,983		1,937		101,248
Partial loss probable	9	3,490		—		—		—		3,490
Definite loss	10	—		—		—		—		—
Total		$	1,093,629	$	3,251,248	$	365,165	$	164,676	$	4,874,718

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:

	June 30, 2019		December 31, 2018
Residential portfolio
FICO score (re-scored)(1)	749		749
LTV (re-valued)(2)	62.1	%	58.6	%
Home equity portfolio
FICO score (re-scored)(1)	767		767
LTV (re-valued)(2)(3)	47.9	%	49.3	%

 

(1) The average FICO scores at June 30, 2019 are based upon rescores available from June 2019 or origination data for loans booked from April through June 2019.  The average FICO scores at December 31, 2018 are based upon rescores available from November 2018 and origination score data for loans booked in December 2018.

(2) The combined LTV ratios for June 30, 2019 are based upon updated automated valuations as of April 2019, when available, or the most current valuation data available.  The combined LTV ratios for December 31, 2018 are based upon updated automated valuations as of November 2018, when available, and/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:

	June 30, 2019		December 31, 2018
	(Dollars in thousands)
Commercial and industrial	$	24,895	$	26,310
Commercial real estate	833		3,015
Commercial construction	—		311
Small business	168		235
Residential real estate	9,986		8,251
Home equity	6,973		7,278
Other consumer	111		13
Total nonaccrual loans (1)	$	42,966	$	45,413

(1)Included in these amounts were $27.8 million and $29.3 million of nonaccruing TDRs at June 30, 2019 and December 31, 2018, respectively.

Foreclosed Residential Real Estate Property [Table Text Block]

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

	June 30, 2019		December 31, 2018
	(Dollars in thousands)
Foreclosed residential real estate property held by the creditor	$	2,889	$	—
Recorded investment in mortgage loans collateralized by residential real estate property that are in the process of foreclosure	$	3,102	$	3,174

Age analysis of past due financing receivables

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

	June 30, 2019
	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	1	$	296	—	$	—	4	$	109	5	$	405	$	1,400,519	$	1,400,924	$	—
Commercial real estate	5	637		2	352		1	81		8	1,070		4,056,996		4,058,066		—
Commercial construction	2	706		—	—		—	—		2	706		490,892		491,598		—
Small business	2	51		5	95		9	139		16	285		173,642		173,927		—
Residential real estate	18	3,306		12	2,168		40	8,470		70	13,944		1,641,238		1,655,182		1,776		(1)
Home equity	25	1,185		10	618		34	3,439		69	5,242		1,139,257		1,144,499		541		(1)
Other consumer	336	254		20	39		19	102		375	395		26,196		26,591		11		(2)
Total	389	$	6,435	49	$	3,272	107	$	12,340	545	$	22,047	$	8,928,740	$	8,950,787	$	2,328

	December 31, 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	—	$	—	4	$	382	11	$	26,311	15	$	26,693	$	1,066,936	$	1,093,629	$	—
Commercial real estate	9	1,627		—	—		8	2,250		17	3,877		3,247,371		3,251,248		—
Commercial construction	1	1,271		—	—		1	311		2	1,582		363,583		365,165		—
Small business	15	506		19	87		24	162		58	755		163,921		164,676		—
Residential real estate	23	3,486		6	521		25	4,382		54	8,389		914,905		923,294		—
Home equity	22	1,331		12	855		29	2,663		63	4,849		1,087,235		1,092,084		—
Other consumer (2)	330	181		15	9		12	13		357	203		15,895		16,098		5
Total	400	$	8,402	56	$	1,854	110	$	36,092	566	$	46,348	$	6,859,846	$	6,906,194	$	5

(1) Represents purchased credit impaired loans that are accruing interest due to expectations of future cash collections.

(2) 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:

	June 30, 2019		December 31, 2018
	(Dollars in thousands)
TDRs on accrual status	$	22,423	$	23,849
TDRs on nonaccrual	27,841		29,348
Total TDRs	$	50,264	$	53,197
Amount of specific reserves included in the allowance for loan losses associated with TDRs	$	1,073	$	1,079
Additional commitments to lend to a borrower who has been a party to a TDR	$	377	$	982

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					Six Months Ended
	June 30, 2019					June 30, 2019
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars in thousands)
Troubled debt restructurings
Commercial and industrial	1	$	97	$	97	1	$	97	$	97
Commercial real estate	—	—		—		1	150		150
Small business	2	56		56		2	56		56
Home equity	—	—		—		1	75		75
Total	3	$	153	$	153	5	$	378	$	378

 

	Three Months Ended					Six Months Ended
	June 30, 2018					June 30, 2018
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars in thousands)
Troubled debt restructurings
Commercial real estate	—	—		—		1	445		445
Residential real estate	1	149		149		1	149		149
Home equity	4	230		230		6	472		472
Total	5	$	379	$	379	8	$	1,066	$	1,066

 

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				Six Months Ended
	June 30				June 30
	2019		2018		2019		2018
	(Dollars in thousands)				(Dollars in thousands)
Adjusted interest rate	$	—	$	—	$	150	$	—
Court ordered concession	—		379		75		621
Extended maturity	153		—		153		445
Total	$	153	$	379	$	378	$	1,066

Impaired loans by loan portfolio

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

	June 30, 2019
	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Dollars in thousands)
With no related allowance recorded
Commercial and industrial	$	27,085	$	37,169	$	—
Commercial real estate	7,414		7,634		—
Small business	342		389		—
Residential real estate	4,694		4,831		—
Home equity	4,723		4,976		—
Other consumer	42		43		—
Subtotal	44,300		55,042		—
With an allowance recorded
Commercial and industrial	$	266	$	266	$	7
Commercial real estate	1,655		1,655		74
Small business	188		229		38
Residential real estate	6,657		7,765		789
Home equity	966		1,127		159
Other consumer	131		133		6
Subtotal	9,863		11,175		1,073
Total	$	54,163	$	66,217	$	1,073

	December 31, 2018
	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Dollars in thousands)
With no related allowance recorded
Commercial and industrial	$	28,459	$	35,913	$	—
Commercial real estate	9,552		9,832		—
Small business	358		439		—
Residential real estate	4,518		4,686		—
Home equity	4,957		5,199		—
Other consumer	56		56		—
Subtotal	47,900		56,125		—
With an allowance recorded
Commercial and industrial	$	370	$	370	$	7
Commercial real estate	1,287		1,287		37
Small business	183		223		1
Residential real estate	8,188		9,217		862
Home equity	991		1,149		164
Other consumer	141		143		8
Subtotal	11,160		12,389		1,079
Total	$	59,060	$	68,514	$	1,079

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				Six Months Ended
	June 30, 2019				June 30, 2019
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
With no related allowance recorded
Commercial and industrial	$	27,406	$	34	$	28,971	$	70
Commercial real estate	7,496		92		7,582		186
Small business	309		2		319		6
Residential real estate	4,713		58		4,727		113
Home equity	4,751		53		4,783		107
Other consumer	42		1		45		1
Subtotal	44,717		240		46,427		483
With an allowance recorded
Commercial and industrial	$	268	$	3	$	270	$	6
Commercial real estate	1,662		24		1,672		49
Small business	190		2		192		5
Residential real estate	6,707		59		6,775		116
Home equity	972		11		978		22
Other consumer	132		2		135		2
Subtotal	9,931		101		10,022		200
Total	$	54,648	$	341	$	56,449	$	683

	Three Months Ended				Six Months Ended
	June 30, 2018				June 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	$	32,557	$	34	$	33,198	$	68
Commercial real estate	13,018		148		13,131		295
Small business	672		3		703		8
Residential real estate	4,825		60		4,842		119
Home equity	5,100		54		5,160		106
Other consumer	66		1		68		2
Subtotal	56,238		300		57,102		598
With an allowance recorded
Commercial and industrial	$	225	$	2	$	226	$	5
Commercial real estate	2,165		24		2,172		48
Small business	163		3		169		6
Residential real estate	8,003		68		8,045		136
Home equity	1,732		15		1,744		27
Other consumer	194		1		198		3
Subtotal	12,482		113		12,554		225
Total	$	68,720	$	413	$	69,656	$	823

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:

	June 30, 2019		December 31, 2018
	(Dollars in thousands)
Outstanding balance	$	20,221	$	9,749
Carrying amount	$	16,112	$	8,795

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 June 30						Six Months Ended June 30
	2019			2018			2019			2018
	(Dollars in thousands)
Beginning balance	$	1,164		$	1,642		$	1,191		$	1,791
Acquisition	1,464			—			1,464			—
Accretion	(662		)	(198		)	(803		)	(413		)
Other change in expected cash flows (1)	272			160			386			204
Reclassification from nonaccretable difference for loans which have paid off (2)	—			—			—			22
Ending balance	$	2,238		$	1,604		$	2,238		$	1,604

(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.