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

6 Months Ended

Jun. 30, 2021

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 June 30, 2021
	(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	$	20,207	$	44,348	$	5,268	$	3,621	$	12,956	$	20,716	$	433	$	107,549


Charge-offs	(142)		—		—		(35)		—		(69)		(235)		(481)
Recoveries	35		—		—		4		—		45		205		289
Provision for credit loss expense	(3,068)		(23)		(403)		22		(942)		(605)		19		(5,000)
Ending balance (1)	$	17,032	$	44,325	$	4,865	$	3,612	$	12,014	$	20,087	$	422	$	102,357

	Three Months Ended June 30, 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	$	21,649	$	29,498	$	3,747	$	3,829	$	14,847	$	17,910	$	896	$	92,376
Charge-offs	—		—		—		(36)		—		(4)		(670)		(710)
Recoveries	4		—		—		3		—		95		408		510
Provision for credit loss expense	4,009		7,458		754		765		199		6,859		(44)		20,000
Ending balance (1)	$	25,662	$	36,956	$	4,501	$	4,561	$	15,046	$	24,860	$	590	$	112,176

	Six Months Ended June 30, 2021
	(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	$	21,086	$	45,009	$	5,397	$	5,095	$	14,275	$	22,060	$	470	$	113,392
Charge-offs	(3,473)		—		—		(101)		—		(69)		(524)		(4,167)
Recoveries	99		57		—		15		1		58		402		632
Provision for credit loss expense	(680)		(741)		(532)		(1,397)		(2,262)		(1,962)		74		(7,500)
Ending balance (1)	$	17,032	$	44,325	$	4,865	$	3,612	$	12,014	$	20,087	$	422	$	102,357

	Six Months Ended June 30, 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 (2)	(1,984)		(13,048)		(3,652)		495		9,828		7,012		212		(1,137)
Cumulative effect accounting adjustment (3)	49		337		—		—		423		319		29		1,157
Charge-offs	—		—		—		(145)		—		(142)		(1,157)		(1,444)
Recoveries	46		—		—		6		1		153		654		860
Provision for credit loss expense	9,957		16,732		2,100		2,459		1,354		11,942		456		45,000
Ending balance (1)	$	25,662	$	36,956	$	4,501	$	4,561	$	15,046	$	24,860	$	590	$	112,176

(1)Balances of accrued interest receivable excluded from amortized cost and the calculation of allowance for credit losses amounted to $29.9 million and $32.9 million as of June 30, 2021 and June 30, 2020, respectively.

(2)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.

(3)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.

Financing Receivable Credit Quality Indicators [Table Text Block]

The following table details the amortized cost balances of the Company's loan portfolios, presented by credit quality indicator and origination year as of the dates indicated below:


	June 30, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving converted to Term		Total (1)
	(Dollars in thousands)
Commercial and industrial
Pass (2)	$	552,640	$	296,008	$	113,698	$	83,243	$	18,357	$	20,908	$	577,872	$	—	$	1,662,726
Potential weakness	4,726		11,553		3,292		1,772		1,141		2,531		8,596		—		33,611
Definite weakness - loss unlikely	18,026		338		1,023		1,105		2,714		244		6,711		—		30,161
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	575,392	$	307,899	$	118,013	$	86,120	$	22,212	$	23,683	$	593,179	$	—	$	1,726,498




Commercial real estate
Pass	$	489,652	$	1,029,017	$	679,780	$	373,916	$	496,399	$	862,508	$	15,370	$	—	$	3,946,642
Potential weakness	15,416		29,480		54,436		32,476		18,923		86,135		13,614		—		250,480
Definite weakness - loss unlikely	9,505		22,090		3,665		2,210		9,874		7,077		—		—		54,421
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	$	514,573	$	1,080,587	$	737,881	$	408,602	$	525,196	$	955,720	$	28,984	$	—	$	4,251,543




Commercial construction
Pass	$	63,620	$	235,629	$	107,190	$	24,374	$	22,951	$	6,568	$	16,232	$	1,998	$	478,562
Potential weakness	—		17,560		—		—		—		—		417		—		17,977
Definite weakness - loss unlikely	—		—		—		—		—		—		—		—		—
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—


Total commercial construction	$	63,620	$	253,189	$	107,190	$	24,374	$	22,951	$	6,568	$	16,649	$	1,998	$	496,539




Small business
Pass	$	29,131	$	40,220	$	23,870	$	16,104	$	11,712	$	25,050	$	33,588	$	—	$	179,675
Potential weakness	15		—		386		202		8		188		655		—		1,454
Definite weakness - loss unlikely	—		657		44		45		11		289		688		—		1,734
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total small business	$	29,146	$	40,877	$	24,300	$	16,351	$	11,731	$	25,527	$	34,931	$	—	$	182,863




Residential real estate
Pass	$	214,476	$	201,684	$	103,045	$	109,323	$	111,755	$	496,981	$	—	$	—	$	1,237,264
Default	—		—		—		414		—		2,601		—		—		3,015

Total residential real estate	$	214,476	$	201,684	$	103,045	$	109,737	$	111,755	$	499,582	$	—	$	—	$	1,240,279




Home equity
Pass	$	46,378	$	72,942	$	45,918	$	41,749	$	45,468	$	127,241	$	633,065	$	3,962	$	1,016,723
Default	—		—		—		—		—		34		1,651		—		1,685

Total home equity	$	46,378	$	72,942	$	45,918	$	41,749	$	45,468	$	127,275	$	634,716	$	3,962	$	1,018,408




Other consumer
Pass	$	281	$	400	$	304	$	108	$	571	$	6,179	$	15,015	$	—	$	22,858
Default	—		—		—		—		—		—		—		—		—

Total other consumer	$	281	$	400	$	304	$	108	$	571	$	6,179	$	15,015	$	—	$	22,858

Total	$	1,443,866	$	1,957,578	$	1,136,651	$	687,041	$	739,884	$	1,644,534	$	1,323,474	$	5,960	$	8,938,988


	June 30, 2020
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving converted to Term		Total (1)
	(Dollars in thousands)
Commercial and industrial
Pass (2)	$	911,414	$	193,832	$	129,199	$	44,664	$	27,640	$	25,095	$	565,953	$	2,668	$	1,900,465
Potential weakness	1,896		1,818		1,426		4,787		1,609		544		12,515		50		24,645
Definite weakness - loss unlikely	2,124		1,779		23,609		5,552		2,555		1,430		42,437		—		79,486
Partial loss probable	—		—		—		—		—		49		—		—		49
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	915,434	$	197,429	$	154,234	$	55,003	$	31,804	$	27,118	$	620,905	$	2,718	$	2,004,645

Commercial real estate
Pass	$	490,280	$	895,594	$	546,513	$	607,633	$	438,455	$	846,195	$	48,889	$	14,854	$	3,888,413
Potential weakness	5,218		6,423		4,821		23,123		14,159		47,055		—		—		100,799
Definite weakness - loss unlikely	3,747		2,992		37,155		21,091		4,525		12,325		—		—		81,835
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	$	499,245	$	905,009	$	588,489	$	651,847	$	457,139	$	905,575	$	48,889	$	14,854	$	4,071,047

Commercial construction
Pass	$	91,981	$	241,910	$	95,253	$	66,282	$	—	$	6,810	$	32,012	$	1,095	$	535,343
Potential weakness	—		367		382		—		—		—		177		—		926
Definite weakness - loss unlikely	—		—		1,519		—		—		—		—		—		1,519
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—


Total commercial construction	$	91,981	$	242,277	$	97,154	$	66,282	$	—	$	6,810	$	32,189	$	1,095	$	537,788

Small business
Pass	$	14,711	$	30,764	$	22,702	$	16,803	$	16,109	$	25,521	$	39,804	$	—	$	166,414
Potential weakness	—		11		17		12		748		246		563		—		1,597
Definite weakness - loss unlikely	186		444		80		173		114		447		833		—		2,277
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total small business	$	14,897	$	31,219	$	22,799	$	16,988	$	16,971	$	26,214	$	41,200	$	—	$	170,288

Residential real estate
Pass	$	78,072	$	185,896	$	213,340	$	187,713	$	263,749	$	495,816	$	—	$	—	$	1,424,586
Default	—		—		427		939		369		4,808		—		—		6,543

Total residential real estate	$	78,072	$	185,896	$	213,767	$	188,652	$	264,118	$	500,624	$	—	$	—	$	1,431,129

Home equity
Pass	$	43,516	$	70,369	$	64,874	$	64,569	$	49,347	$	130,900	$	691,110	$	2,635	$	1,117,320
Default	—		—		—		15		—		419		2,466		303		3,203

Total home equity	$	43,516	$	70,369	$	64,874	$	64,584	$	49,347	$	131,319	$	693,576	$	2,938	$	1,120,523

Other consumer
Pass	$	451	$	566	$	266	$	916	$	836	$	9,193	$	11,965	$	—	$	24,193
Default	—		—		—		—		—		35		—		—		35

Total other consumer	$	451	$	566	$	266	$	916	$	836	$	9,228	$	11,965	$	—	$	24,228

Total	$	1,643,596	$	1,632,765	$	1,141,583	$	1,044,272	$	820,215	$	1,606,888	$	1,448,724	$	21,605	$	9,359,648

(1)Loan origination dates in the tables above reflect the original origination date, or the date of a material modification of a previously originated loan.

(2)Loans originated as part of the Paycheck Protection Program ("PPP") established by the CARES Act are included within commercial and industrial under the 2021 and 2020 vintage year and "pass" category as these loans are 100% guaranteed by the U.S. Government. Outstanding PPP loans totaled $482.7 million as of June 30, 2021, including $112.2 million and $370.5 million originated in 2020 and 2021, respectively, while outstanding PPP loans as of June 30, 2020 totaled $793.0 million.

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, 2021		December 31, 2020
	(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	$	1,401	$	1,750

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 at the dates indicated below:


	June 30 2021		December 31 2020
Residential portfolio
FICO score (re-scored)(1)	749		749
LTV (re-valued)(2)	56.6	%	57.4	%
Home equity portfolio
FICO score (re-scored)(1)	772		771
LTV (re-valued)(2)(3)	45.5	%	46.0	%

(1)The average FICO scores at June 30, 2021 are based upon rescores from June 2021, as available for previously originated loans, or origination score data for loans booked in June 2021. The average FICO scores at December 31, 2020 were based upon rescores available from December 2020, as available for previously originated loans, or origination score data for loans booked in December 2020.

(2)The combined LTV ratios for June 30, 2021 are based upon updated automated valuations as of May 2021, when available, and/or the most current valuation data available. The combined LTV ratios for December 31, 2020 were based upon updated automated valuations as of November 2020, 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.

Financing Receivable, Past Due [Table Text Block]

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


	June 30, 2021
	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	4	$	1,384	—	$	—	—	$	—	4	$	1,384	$	1,725,114	$	1,726,498	$	—
Commercial real estate	2	202		1	162		3	291		6	655		4,250,888		4,251,543		—
Commercial construction	—	—		—	—		—	—		—	—		496,539		496,539		—
Small business	4	18		1	61		4	32		9	111		182,752		182,863		—
Residential real estate	9	1,167		2	153		22	3,223		33	4,543		1,235,736		1,240,279		—
Home equity	12	572		7	520		20	1,684		39	2,776		1,015,632		1,018,408		—
Other consumer (1)	233	173		—	—		1	1		234	174		22,684		22,858		—
Total	264	$	3,516	11	$	896	50	$	5,231	325	$	9,643	$	8,929,345	$	8,938,988	$	—


	December 31, 2020
	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	$	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

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

Financing Receivable, Nonaccrual [Table Text Block]

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


	Nonaccrual Balances
	June 30, 2021						December 31, 2020
	With Allowance for Credit Losses		Without Allowance for Credit Losses		Total		With Allowance for Credit Losses		Without Allowance for Credit Losses		Total
	(Dollars in thousands)
Commercial and industrial	$	3,465	$	17,366	$	20,831	$	3,804	$	30,925	$	34,729
Commercial real estate	9,031		—		9,031		10,195		—		10,195

Small business	558		—		558		815		10		825
Residential real estate	8,952		3,834		12,786		10,935		4,593		15,528
Home equity	4,517		—		4,517		5,427		—		5,427
Other consumer	95		—		95		156		—		156
Total nonaccrual loans (1)	$	26,618	$	21,200	$	47,818	$	31,332	$	35,528	$	66,860

(1)Included in these amounts were $20.2 million and $22.2 million of nonaccruing TDRs at June 30, 2021 and December 31, 2020, respectively.

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:


		June 30, 2021		December 31, 2020
	(Dollars in thousands)
TDRs on accrual status		$	19,495	$	16,983
TDRs on nonaccrual		20,212		22,209
Total TDRs		$	39,707	$	39,192
Additional commitments to lend to a borrower who has been a party to a TDR		$	412	$	263

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

The following table shows the TDRs 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, 2021					June 30, 2021
	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	$	14,148	$	14,148
Commercial real estate	—	—		—		5	3,964		3,964
Small business	1	89		89		2	189		189



Total (1)	1	$	89	$	89	8	$	18,301	$	18,301


	Three Months Ended					Six Months Ended
	June 30, 2020					June 30, 2020
	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	$	40	$	40	3	$	308	$	308
Commercial real estate	4	1,170		1,170		5	1,774		1,774
Small business	1	63		63		2	112		88
Residential real estate	1	382		433		2	559		642


Total (1)	7	$	1,655	$	1,706	12	$	2,753	$	2,812

(1)The pre-modification and post-modification balances represent the legal principal balance of the loan. Activity presented in the tables above includes no modifications on existing TDRs during the three months ended June 30, 2021, $14.3 million of modifications on existing TDRs during the six months ended June 30, 2021, and $510,000 and $1.4 million of modifications on existing TDRs during the three and six months ended June 30, 2020, respectively.

Troubled Debt Restructurings On Financing Receivables Post Modifications Table Text Block

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


	Three Months Ended		Six Months Ended
	June 30		June 30
	2021	2020	2021		2020
	(Dollars in thousands)
Adjusted interest rate	—	—	$	—	$	604
Combination rate and maturity	—	—	14,148		—
Court ordered concession	—	—	—		25
Extended maturity	89	1,706	4,153		2,183
Total	89	1,706	$	18,301	$	2,812