LOANS, ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY (Tables)

12 Months Ended

Dec. 31, 2020

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

Schedule of Allowance for Loan Losses

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 year ended December 31, 2020:

	Years Ended December 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 ASU 2016-13	$	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	(2,309)		(3,885)		—		(380)		(105)		(142)		(1,625)		(8,446)
Recoveries	289		9		—		33		2		210		1,035		1,578
Provision for credit loss expense	7,447		28,661		2,996		3,201		687		9,085		423		52,500
Ending balance (3)	$	21,086	$	45,009	$	5,397	$	5,095	$	14,275	$	22,060	$	470	$	113,392

(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 reclassification 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 reclassification.

(3)Balances of accrued interest receivable excluded from amortized cost and the calculation of allowance for credit losses amounted to $36.0 million at December 31, 2020.

The following table bifurcates the amount of loans and the allowance allocated to each loan category based on the type of impairment analysis at December 31, 2019 and 2018:

	December 31, 2019
	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	$	15,760	$	32,370	$	5,158	$	1,756	$	3,219	$	5,608	$	422	$	64,293
Charge-offs	(244)		(2,614)		—		(509)		—		(240)		(1,598)		(5,205)
Recoveries	1,131		152		—		122		142		318		787		2,652
Provision (benefit)	947		3,027		895		377		79		(110)		785		6,000
Ending balance	$	17,594	$	32,935	$	6,053	$	1,746	$	3,440	$	5,576	$	396	$	67,740
Ending balance: collectively evaluated for impairment	$	17,468	$	32,887	$	6,053	$	1,738	$	2,803	$	5,420	$	391	$	66,760
Ending balance: individually evaluated for impairment	$	126	$	48	$	—	$	8	$	637	$	156	$	5	$	980
Financing receivables ending balance:
Collectively evaluated for impairment	$	1,370,580	$	3,987,848	$	547,293	$	173,960	$	1,571,848	$	1,127,963	$	29,663	$	8,809,155
Individually evaluated for impairment	24,456		8,337		—		537		11,228		4,948		122		49,628
Purchased credit impaired loans	—		6,174		—		—		7,493		887		302		14,856
Total loans by group	$	1,395,036	$	4,002,359	$	547,293	$	174,497	$	1,590,569	$	1,133,798	$	30,087	$	8,873,639	(1)

	December 31, 2018
	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	$	13,256	$	31,453	$	5,698	$	1,577	$	2,822	$	5,390	$	447	$	60,643
Charge-offs	(355)		(82)		—		(372)		(148)		(293)		(1,347)		(2,597)
Recoveries	182		188		—		46		12		156		888		1,472
Provision (benefit)	2,677		811		(540)		505		533		355		434		4,775
Ending balance	$	15,760	$	32,370	$	5,158	$	1,756	$	3,219	$	5,608	$	422	$	64,293
Ending balance: collectively evaluated for impairment	$	15,753	$	32,333	$	5,158	$	1,755	$	2,357	$	5,444	$	414	$	63,214
Ending balance: individually evaluated for impairment	$	7	$	37	$	—	$	1	$	862	$	164	$	8	$	1,079
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
Purchase 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 $7.1 million at December 31, 2019 and 2018. Net unamortized discounts on acquired loans not deemed to be purchased credit impaired ("PCI") included in the ending balance were $21.6 million and $15.2 million at December 31, 2019 and 2018 respectively.

Schedule of Internal Risk-Rating Categories for the Company's Commercial Portfolio

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

	2020			2019		2018		2017		2016		Prior		Revolving Loans		Revolving converted to Term		Total
	(Dollars in thousands)
Commercial and industrial
Pass	$	1,074,773	(1)	$	141,859	$	97,908	$	30,431	$	19,426	$	19,749	$	631,049	$	2,538	$	2,017,733
Potential weakness	9,020			1,869		670		4,997		1,539		294		20,766		—		39,155
Definite weakness - loss unlikely	2,009			1,310		19,575		2,997		320		429		6,991		—		33,631
Partial loss probable	672			—		—		—		156		143		11,662		—		12,633
Definite loss	—			—		—		—		—		—		—		—		—
Total commercial and industrial	$	1,086,474		$	145,038	$	118,153	$	38,425	$	21,441	$	20,615	$	670,468	$	2,538	$	2,103,152
Commercial real estate
Pass	$	1,054,345		$	726,276	$	480,725	$	544,826	$	372,542	$	664,256	$	19,085	$	14,737	$	3,876,792
Potential weakness	27,877			55,166		30,286		19,531		25,462		71,252		13,610		—		243,184
Definite weakness - loss unlikely	25,878			3,502		3,857		10,185		3,376		7,153		—		—		53,951
Partial loss probable	—			—		—		—		—		—		—		—		—
Definite loss	—			—		—		—		—		—		—		—		—
Total commercial real estate	$	1,108,100		$	784,944	$	514,868	$	574,542	$	401,380	$	742,661	$	32,695	$	14,737	$	4,173,927
Commercial construction
Pass	$	255,679		$	167,948	$	30,706	$	32,538	$	—	$	6,689	$	31,705	$	588	$	525,853
Potential weakness	17,528			9,953		520		—		—		—		75		—		28,076
Definite weakness - loss unlikely	—			—		—		—		—		—		—		—		—
Partial loss probable	—			—		—		—		—		—		—		—		—
Definite loss	—			—		—		—		—		—		—		—		—
Total commercial construction	$	273,207		$	177,901	$	31,226	$	32,538	$	—	$	6,689	$	31,780	$	588	$	553,929
Small business
Pass	$	41,713		$	27,751	$	19,497	$	13,411	$	13,837	$	19,624	$	35,451	$	—	$	171,284
Potential weakness	—			10		15		15		6		217		822		—		1,085
Definite weakness - loss unlikely	684			438		122		11		137		353		883		—		2,628
Partial loss probable	—			—		—		—		—		—		26		—		26
Definite loss	—			—		—		—		—		—		—		—		—
Total small business	$	42,397		$	28,199	$	19,634	$	13,437	$	13,980	$	20,194	$	37,182	$	—	$	175,023
Residential real estate
Pass	$	219,595		$	146,058	$	160,422	$	144,638	$	215,568	$	401,279	$	—	$	—	$	1,287,560
Default	—			—		427		—		4,158		4,038		—		—		8,623
Total residential real estate	$	219,595		$	146,058	$	160,849	$	144,638	$	219,726	$	405,317	$	—	$	—	$	1,296,183
Home equity
Pass	$	82,312		$	59,409	$	52,088	$	53,570	$	41,181	$	111,360	$	661,575	$	4,663	$	1,066,158
Default	—			—		—		—		—		440		1,837		355		2,632
Total home equity	$	82,312		$	59,409	$	52,088	$	53,570	$	41,181	$	111,800	$	663,412	$	5,018	$	1,068,790
Other consumer
Pass	$	816		$	398	$	165	$	665	$	615	$	6,749	$	12,317	$	—	$	21,725

Default	—		—		—		15		—		111		11		—		137
Total other consumer	$	816	$	398	$	165	$	680	$	615	$	6,860	$	12,328	$	—	$	21,862
Total	$	2,812,901	$	1,341,947	$	896,983	$	857,830	$	698,323	$	1,314,136	$	1,447,865	$	22,881	$	9,392,866

(1)Loans originated as part of the Paycheck Protection Program ("PPP") established by the CARES Act are reported as commercial and industrial under the 2020 vintage year and as"Pass" because these loans are 100% guaranteed by the U.S. Government. Funded PPP loans outstanding totaled $791.9 million at December 31, 2020.

The following table shows the weighted average FICO scores and the weighted average combined LTV ratios at the dates indicated below:

	December 31 2020		December 31 2019
Residential portfolio
FICO score (re-scored)(1)	749		749
LTV (re-valued)(2)	57.4	%	59.0	%
Home equity portfolio
FICO score (re-scored)(1)	771		767
LTV (re-valued)(2)(3)	46.0	%	46.6	%

(1)The average FICO scores at December 31, 2020 are based upon rescores from December 2020, as available for previously originated loans, or origination score data for loans booked in December 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 December 31, 2020 are based upon updated automated valuations as of November 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 as of such date.  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.

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

		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

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

	December 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	$	1,750	$	3,294

Schedule of the Age Analysis of Past Due Financing Receivables

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

	December 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	2	$	318	1	$	672	8	$	785	11	$	1,775	$	2,101,377	$	2,103,152	$	—
Commercial real estate	3	409		—	—		4	515		7	924		4,173,003		4,173,927		—
Commercial construction	—	—		2	2,794		—	—		2	2,794		551,135		553,929		—
Small business	14	421		6	273		4	59		24	753		174,270		175,023		—
Residential real estate	12	2,150		8	5,507		27	3,648		47	11,305		1,284,878		1,296,183		—
Home equity	10	733		5	203		33	2,633		48	3,569		1,065,221		1,068,790		—
Other consumer (1)	260	137		3	1		6	138		269	276		21,586		21,862		1
Total	301	$	4,168	25	$	9,450	82	$	7,778	408	$	21,396	$	9,371,470	$	9,392,866	$	1

	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 ("PCI") loans that were accruing interest due to expectations of future cash collections.

Schedule of Troubled Debt Restructuring and Other Pertinent Information

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

		December 31, 2020		December 31, 2019
	(Dollars in thousands)
TDRs on accrual status		$	16,983	$	19,599
TDRs on nonaccrual		22,209		24,766
Total TDRs		$	39,192	$	44,365
Amount of specific reserves associated with TDRs		n/a		$	855
Additional commitments to lend to a borrower who has been a party to a TDR		$	263	$	63

Schedule of Post-Modification Balance of Troubled Debt Restructuring by Type of Modification

The following table shows the troubled debt restructurings which occurred for the periods indicated and the change in the recorded investment subsequent to the modifications occurring:

	Year Ended
	December 31, 2020
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled debt restructurings
Commercial and industrial	8	$	732	$	732
Commercial real estate	10	2,865		2,865
Small business	10	752		728
Residential real estate	2	559		642
Total	30	$	4,908	$	4,967

	Year Ended
	December 31, 2019
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled debt restructurings
Commercial and industrial	3	$	268	$	268
Commercial real estate	4	819		819
Small business	1	14		14
Residential real estate	3	967		1,009
Home equity	2	121		121
Total	13	$	2,189	$	2,231

	Year Ended
	December 31, 2018
	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled debt restructurings
Commercial and industrial	$	12	$	35,688	$	39,224
Commercial real estate	3		1,600		1,600
Residential real estate	5		1,048		1,071
Home equity	9		562		562
Total	$	29	$	38,898	$	42,457

Schedule of Impaired Loans by Loan Portfolio

	As of and For the Years Ended December 31
	2019
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
With no related allowance recorded
Commercial and industrial	$	23,786	$	34,970	$	—	$	27,056	$	136
Commercial real estate	6,213		12,101		—		12,595		523
Small business	469		484		—		471		22
Residential real estate	4,976		5,123		—		5,045		222
Home equity	3,764		3,893		—		3,869		184
Other consumer	34		34		—		41		3
Subtotal	39,242		56,605		—		49,077		1,090
With an allowance recorded
Commercial and industrial	670		670		126		718		29
Commercial real estate	2,124		2,124		48		2,176		122
Small business	68		105		8		74		2
Residential real estate	6,252		7,163		637		6,326		239
Home equity	1,184		1,382		156		1,214		52
Other consumer	88		91		5		97		3
Subtotal	10,386		11,535		980		10,605		447
Total	$	49,628	$	68,140	$	980	$	59,682	$	1,537

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 for the year ended December 31, 2019:

	2019
	(Dollars in thousands)
Beginning balance	$	1,191
Acquisition	1,464
Accretion	(1,751)
Other change in expected cash flows (1)	803
Reclassification from nonaccretable difference for loans which have paid off (2)	227
Ending balance	$	1,934

(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

^[1]

[1] Results in increased income during the period when a loan pays off at amount greater than originally expected.