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

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

Financing Receivable, Allowance for Credit Loss [Table Text Block]

The following table summarizes the change in allowance for credit losses by loan category, and bifurcates the amount of loans allocated to each loan category for the period indicated:

	Three Months Ended March 31, 2020
	(Dollars in thousands)
	Commercial and Industrial			Commercial Real Estate			Commercial Construction			Small Business		Residential Real Estate		Home  Equity		Other Consumer		Total
Allowance for credit losses
Beginning balance, pre adoption of Topic 326	$	17,594		$	32,935		$	6,053		$	1,746	$	3,440	$	5,576	$	396	$	67,740
Cumulative effect accounting adjustment (1)	(1,984		)	(13,048		)	(3,652		)	495		9,828		7,012		212		(1,137		)
Cumulative effect accounting adjustment (2)	49			337			—			—		423		319		29		1,157
Charge-offs	—			—			—			109		—		138		487		734
Recoveries	42			—			—			3		1		58		246		350
Provision for credit loss expense	5,948			9,274			1,346			1,694		1,155		5,083		500		25,000
Ending balance (3)	$	21,649		$	29,498		$	3,747		$	3,829	$	14,847	$	17,910	$	896	$	92,376

(1) Represents adjustment needed to reflect the cumulative day one impact pursuant to the Company's adoption of Accounting Standards Update 2016-13. The adjustment represents a $1.1 million decrease to the allowance attributable to the change in accounting methodology for estimating the allowance for credit losses resulting from the Company's adoption of the standard.

(2) Represents adjustment needed to reflect the day one re-class of the Company's PCI loan balances to PCD and the associated gross-up, pursuant to the Company's adoption of Accounting Standards Update 2016-13. The adjustment represents a $1.2 million increase to the allowance resulting from the day one re-class.

(3)

Balances of accrued interest receivable excluded from amortized cost and the calculation of allowance for credit losses amounted to $25.9 million as of March 31, 2020.

The following table summarizes changes in allowance for loan losses by loan category for the period indicated:

	Three Months Ended March 31, 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	—		—			—		(145		)	—		(113		)	(301		)	(559		)
Recoveries	124		33			—		27			1		66			155			406
Provision (benefit)	988		(354		)	197		146			14		(54		)	63			1,000
Ending balance	$	16,872	$	32,049		$	5,355	$	1,784		$	3,234	$	5,507		$	339		$	65,140
Ending balance: collectively evaluated for impairment	$	16,814	$	31,974		$	5,355	$	1,783		$	2,432	$	5,346		$	332		$	64,036
Ending balance: individually evaluated for impairment	$	58	$	75		$	—	$	1		$	802	$	161		$	7		$	1,104

Financing Receivable Credit Quality Indicators [Table Text Block]

he following table details the amortized cost balances of the Company's loan portfolios, presented by credit quality indicator and origination year as of March 31, 2020:

	March 31, 2020
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving converted to Term		Total
	(Dollars in thousands)
Commercial and industrial
Pass	$	119,886	$	213,925	$	138,376	$	50,323	$	36,685	$	33,576	$	736,304	$	327	$	1,329,402
Potential weakness	362		5,432		1,489		4,909		725		697		21,780		50		35,444
Definite weakness - loss unlikely	495		2,128		26,006		5,589		2,604		1,575		44,932		—		83,329
Partial loss probable	—		—		—		—		—		49		—		—		49
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	120,743	$	221,485	$	165,871	$	60,821	$	40,014	$	35,897	$	803,016	$	377	$	1,448,224
Commercial real estate
Pass	$	260,217	$	943,205	$	586,125	$	651,335	$	468,824	$	945,248	$	48,056	$	2,987	$	3,905,997
Potential weakness	1,809		8,303		33,755		8,506		9,851		42,382		—		—		104,606
Definite weakness - loss unlikely	—		3,612		7,432		20,395		6,993		12,312		—		—		50,744
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	$	262,026	$	955,120	$	627,312	$	680,236	$	485,668	$	999,942	$	48,056	$	2,987	$	4,061,347
Commercial construction
Pass	$	43,369	$	221,773	$	114,561	$	73,493	$	—	$	6,867	$	44,225	$	325	$	504,613
Potential weakness	—		554		347		19,044		—		—		347		—		20,292
Definite weakness - loss unlikely	—		—		1,887		—		—		—		346		—		2,233
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial construction	$	43,369	$	222,327	$	116,795	$	92,537	$	—	$	6,867	$	44,918	$	325	$	527,138
Small business
Pass	$	8,414	$	31,651	$	25,184	$	17,848	$	17,594	$	26,734	$	47,109	$	—	$	174,534
Potential weakness	—		12		18		13		753		259		597		—		1,652
Definite weakness - loss unlikely	—		47		133		51		169		598		636		—		1,634
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total small business	$	8,414	$	31,710	$	25,335	$	17,912	$	18,516	$	27,591	$	48,342	$	—	$	177,820
Residential real estate
Pass	$	39,122	$	204,524	$	260,899	$	210,662	$	283,255	$	523,742	$	—	$	—	$	1,522,204
Default	—		—		427		435		—		5,350		—		—		6,212
Total residential real estate	$	39,122	$	204,524	$	261,326	$	211,097	$	283,255	$	529,092	$	—	$	—	$	1,528,416
Home equity
Pass	$	23,397	$	75,161	$	70,081	$	67,740	$	51,106	$	138,733	$	715,169	$	1,853	$	1,143,240
Default	—		—		—		18		—		579		2,372		61		3,030
Total home equity	$	23,397	$	75,161	$	70,081	$	67,758	$	51,106	$	139,312	$	717,541	$	1,914	$	1,146,270

Other consumer
Pass	$	414	$	705	$	356	$	1,049	$	1,000	$	10,850	$	12,767	$	—	$	27,141
Default	—		—		—		19		—		39		16		—		74
Total other consumer	$	414	$	705	$	356	$	1,068	$	1,000	$	10,889	$	12,783	$	—	$	27,215
Total	$	497,485	$	1,711,032	$	1,267,076	$	1,131,429	$	879,559	$	1,749,590	$	1,674,656	$	5,603	$	8,916,430

The following tables detail the amount of outstanding principal balances relative to each of the risk-rating categories for the Company’s loan portfolio as of December 31, 2019:

		December 31, 2019
Category	Risk Rating	Commercial  and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Total
		(Dollars in thousands)
Pass	1 - 6	$	1,274,155	$	3,860,555	$	542,608	$	171,213	$	5,848,531
Potential weakness	7	63,485		97,268		2,247		1,416		164,416
Definite weakness-loss unlikely	8	57,396		44,536		2,438		1,868		106,238
Partial loss probable	9	—		—		—		—		—
Definite loss	10	—		—		—		—		—
Total		$	1,395,036	$	4,002,359	$	547,293	$	174,497	$	6,119,185

Foreclosed Residential Real Estate Property [Table Text Block]

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

	March 31, 2020		December 31, 2019
	(Dollars in thousands)
Foreclosed residential real estate property held by the creditor	$	—	$	—
Recorded investment in mortgage loans collateralized by residential real estate property that are in the process of foreclosure	$	4,580	$	3,294

Financing Receivable Credit Quality Indicators For Consumer And Residential Portfolio Table Text Block

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

	March 31 2020		December 31 2019
Residential portfolio
FICO score (re-scored)(1)	749		749
LTV (re-valued)(2)	58.1	%	59.0	%
Home equity portfolio
FICO score (re-scored)(1)	768		767
LTV (re-valued)(2)(3)	46.9	%	46.6	%

 

(1) The average FICO scores at March 31, 2020 are based upon rescores available from February 2020 and origination score data for loans booked in March 2020.  The average FICO scores at December 31, 2019 were based upon rescores available from November 2019 and origination score data for loans booked in December 2019.

(2) The combined LTV ratios for March 31, 2020 are based upon updated automated valuations as of March 2020, when available, and/or the most current valuation data available.  The combined LTV ratios for December 31, 2019 were based upon updated automated valuations as of November 2019, 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.

Financing Receivable, Past Due [Table Text Block]

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

	March 31, 2020
	30-59 days			60-89 days			90 days or more			Total Past Due					Total Financing Receivables		Amortized Cost >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	13	$	1,930	—	$	—	6	$	1,078	19	$	3,008	$	1,445,216	$	1,448,224	$	—
Commercial real estate	18	6,989		2	383		7	1,499		27	8,871		4,052,476		4,061,347		—
Commercial construction	1	331		—	—		—	—		1	331		526,807		527,138		—
Small business	12	1,030		8	185		5	176		25	1,391		176,429		177,820		—
Residential real estate	19	2,614		5	994		39	6,258		63	9,866		1,518,550		1,528,416		—
Home equity	22	1,507		7	801		36	3,030		65	5,338		1,140,932		1,146,270		—
Other consumer (1)	335	386		11	67		16	99		362	552		26,663		27,215		25
Total	420	$	14,787	33	$	2,430	109	$	12,140	562	$	29,357	$	8,887,073	$	8,916,430	$	25

	December 31, 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	$	253	2	$	323	5	$	760	8	$	1,336	$	1,393,700	$	1,395,036	$	—
Commercial real estate	7	1,690		1	194		8	2,038		16	3,922		3,998,437		4,002,359		218		(2	)
Commercial construction	1	560		—	—		—	—		1	560		546,733		547,293		—
Small business	11	837		3	15		6	115		20	967		173,530		174,497		—
Residential real estate	17	2,237		17	3,055		38	7,020		72	12,312		1,578,257		1,590,569		1,652		(2	)
Home equity	23	1,689		8	524		40	3,854		71	6,067		1,127,731		1,133,798		265		(2	)
Other consumer (1)	387	245		12	44		16	32		415	321		29,766		30,087		22
Total	447	$	7,511	43	$	4,155	113	$	13,819	603	$	25,485	$	8,848,154	$	8,873,639	$	2,157

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

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

Financing Receivable, Nonaccrual [Table Text Block]

The following table shows information regarding nonaccrual loans as of the dates indicated:

	Nonaccrual Balances
	March 31, 2020							December 31, 2019
	With Allowance for Credit Losses		Without Allowance for Credit Losses		Total			Total
	(Dollars in thousands)
Commercial and industrial	$	1,078	$	20,357	$	21,435		$	22,574
Commercial real estate	1,305		3,644		4,949			3,016
Commercial construction	—		—		—			—
Small business	450		—		450			311
Residential real estate	11,001		3,501		14,502			13,360
Home equity	6,463		108		6,571			6,570
Other consumer	108		—		108			61
Total nonaccrual loans	$	20,405	$	27,610	$	48,015	(1)	$	45,892	(1)

(1)Included in these amounts were $23.8 million and $24.8 million of nonaccruing TDRs at March 31, 2020 and December 31, 2019, re

Financing Receivable, Troubled Debt Restructuring [Table Text Block]

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

		March 31, 2020		December 31, 2019
	(Dollars in thousands)
TDRs on accrual status		$	18,129	$	19,599
TDRs on nonaccrual		23,842		24,766
Total TDRs		$	41,971	$	44,365
Amount of specific reserves included in the allowance for loan loss associated with TDRs		n/a		$	855
Additional commitments to lend to a borrower who has been a party to a TDR		$	163	$	63

Schedule of Debtor Troubled Debt Restructuring, Subsequent Periods [Table Text Block]

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

	Three Months Ended
	March 31, 2020
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars in thousands)
Troubled debt restructurings
Commercial and industrial	2	$	268	$	268
Commercial real estate	1	604		604
Small business	1	49		25
Residential real estate	1	177		209
Total	5	$	1,098	$	1,106

	Three Months Ended
	March 31, 2019
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars in thousands)
Troubled debt restructurings
Commercial real estate	1	150		150
Home equity	1	75		75
Total	2	$	225	$	225

Troubled Debt Restructurings On Financing Receivables Post Modifications Table Text Block

	Three Months Ended
	March 31, 2019
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars in thousands)
Troubled debt restructurings
Commercial real estate	1	150		150
Home equity	1	75		75
Total	2	$	225	$	225

 

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

	Three Months Ended
	March 31
	2020		2019
	(Dollars in thousands)
Adjusted interest rate	$	604	$	150
Court ordered concession	25		75
Extended maturity	477		—
Total	$	1,106	$	225