10-Q

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

___________________________________________________ 

FORM 10-Q

___________________________________________________

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2021

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 1-9047

___________________________________________________

Independent Bank Corp.

(Exact name of registrant as specified in its charter)

 ___________________________________________________

MA	04-2870273
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Office Address:	2036 Washington Street,	Hanover,	MA	02339
Mailing Address:	288 Union Street,	Rockland,	MA	02370
(Address of principal executive offices, including zip code)

(781) 878-6100

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each Class	Trading Symbol	Name of each exchange on which registered
Common Stock, $0.01 par value per share	INDB	The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes x    No  o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x    No  o

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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	x	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller Reporting Company	☐
		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.) Yes ☐ No ☒

As of November 3, 2021, there were 33,049,880 shares of the issuer’s common stock outstanding, par value $0.01 per share.

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	PAGE
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited)
Consolidated Balance Sheets - September 30, 2021 and December 31, 2020	4
Consolidated Statements of Income - Three and Nine months ended September 30, 2021 and 2020	6
Consolidated Statements of Comprehensive Income -Three and Nine months ended September 30, 2021 and 2020	7
Consolidated Statements of Stockholders’ Equity - Three and Nine months ended September 30, 2021 and 2020	8
Consolidated Statements of Cash Flows - Nine months ended September 30, 2021 and 2020	10
Condensed Notes to Consolidated Financial Statements - September 30, 2021
Note 1 - Basis of Presentation	12
Note 2 - Recent Accounting Standards Updates	12
Note 3 - Securities	13
Note 4 - Loans, Allowance for Credit Losses, and Credit Quality	17
Note 5 - Stock Based Compensation	28
Note 6 - Derivative and Hedging Activities	29
Note 7 - Fair Value Measurements	35
Note 8 - Revenue Recognition	42
Note 9 - Comprehensive Income (Loss)	45
Note 10 - Commitments and Contingencies	46
Note 11 - Low Income Housing Project Investments	48
Note 12 - Subsequent Event	48
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	48
Table 1 - Closed Residential Real Estate Loans	62
Table 2 - Residential Mortgage Loan Sales	62
Table 3 - Mortgage Servicing Asset	63
Table 4 - Nonperforming Assets	68
Table 5 - Activity in Nonperforming Assets	68
Table 6 - Troubled Debt Restructurings	69

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Table 7 - Activity in Troubled Debt Restructurings	69
Table 8 - Interest Income - Nonaccrual Loans and Troubled Debt Restructurings	70
Table 9 - Deferral by Modification Type	70
Table 10 - Industries Highly Impacted By COVID-19 - Details	71
Table 11 - Summary of Changes in the Allowance for Credit Losses	74
Table 12 - Summary of Allocation of the Allowance for Credit Losses	75
Table 13 - Borrowings	76
Table 14 - Company and Bank’s Capital Amounts and Ratios	77
Table 15 - Summary of Results of Operations	79
Table 16 - Average Balance, Interest Earned/Paid & Average Yields Quarter-to-Date	80
Table 17 - Average Balance, Interest Earned/Paid & Average Yields Year-to-Date	82
Table 18 - Volume Rate Analysis	84
Table 19 - Noninterest Income	85
Table 20 - Noninterest Expense	87
Table 21 - Tax Provision and Applicable Tax Rates	88
Table 22 - Sources of Liquidity	90
Table 23 - Interest Rate Sensitivity	92

Item 3. Quantitative and Qualitative Disclosures About Market Risk	93
Item 4. Controls and Procedures	93
PART II. OTHER INFORMATION	93
Item 1. Legal Proceedings	93
Item 1A. Risk Factors	94
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	95
Item 3. Defaults Upon Senior Securities	95
Item 4. Mine Safety Disclosures	95
Item 5. Other Information	95
Item 6. Exhibits	95
Signatures	97

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PART 1. FINANCIAL INFORMATION

Item 1. Financial Statements

INDEPENDENT BANK CORP.

CONSOLIDATED BALANCE SHEETS

(Unaudited—Dollars in thousands)

	September 30 2021		December 31 2020
Assets
Cash and due from banks	$	138,148	$	169,460
Interest-earning deposits with banks	1,869,683		1,127,176
Securities
Trading	3,504		2,838
Equity	22,794		22,107
Available for sale (amortized cost $1,425,392 and $395,453)	1,427,210		412,860
Held to maturity (fair value $875,306 and $752,177)	865,249		724,512
Total securities	2,318,757		1,162,317
Loans held for sale (at fair value)	33,553		58,104
Loans
Commercial and industrial	1,640,709		2,103,152
Commercial real estate	4,221,259		4,173,927
Commercial construction	515,415		553,929
Small business	184,138		175,023
Residential real estate	1,222,849		1,296,183
Home equity - first position	592,564		633,142
Home equity - subordinate positions	407,904		435,648
Other consumer	23,175		21,862
Total loans	8,808,013		9,392,866
Less: allowance for credit losses	(92,246)		(113,392)
Net loans	8,715,767		9,279,474
Federal Home Loan Bank stock	8,666		10,250
Bank premises and equipment, net	123,528		116,393
Goodwill	506,206		506,206
Other intangible assets	19,055		23,107
Cash surrender value of life insurance policies	244,573		200,525
Other assets	555,375		551,289
Total assets	$	14,533,311	$	13,204,301
Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing demand deposits	$	4,590,492	$	3,762,306
Savings and interest checking accounts	4,484,208		4,047,332
Money market	2,399,878		2,232,903
Time certificates of deposit of $100,000 and over	412,129		525,424
Other time certificates of deposits	373,433		425,205
Total deposits	12,260,140		10,993,170
Borrowings
Federal Home Loan Bank borrowings	25,675		35,740
Long-term borrowings (less unamortized debt issuance costs of $0 and $40)	18,750		32,773

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Junior subordinated debentures (less unamortized debt issuance costs of $35 and $37)	62,853		62,851
Subordinated debentures (less unamortized debt issuance costs of $233 and $304)	49,767		49,696
Total borrowings	157,045		181,060
Other liabilities	360,172		327,386
Total liabilities	12,777,357		11,501,616
Commitments and contingencies	—		—
Stockholders' equity
Preferred stock, $0.01 par value, authorized: 1,000,000 shares, outstanding: none	—		—
Common stock, $0.01 par value, authorized: 75,000,000 shares, issued and outstanding: 33,043,812 shares at September 30, 2021 and 32,965,692 shares at December 31, 2020 (includes 135,485 and 135,205 shares of unvested participating restricted stock awards, respectively)	329		328
Value of shares held in rabbi trust at cost: 84,207 shares at September 30, 2021 and 84,126 shares at December 31, 2020	(3,157)		(3,066)
Deferred compensation and other retirement benefit obligations	3,157		3,066
Additional paid in capital	949,316		945,638
Retained earnings	787,742		716,024
Accumulated other comprehensive income, net of tax	18,567		40,695
Total stockholders’ equity	1,755,954		1,702,685
Total liabilities and stockholders' equity	$	14,533,311	$	13,204,301

The accompanying condensed notes are an integral part of these unaudited consolidated financial statements.

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INDEPENDENT BANK CORP.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited—Dollars in thousands, except per share data)

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2021		2020		2021		2020
Interest income
Interest and fees on loans	$	84,212	$	90,112	$	265,409	$	280,768
Taxable interest and dividends on securities	7,792		7,218		21,603		23,006
Nontaxable interest and dividends on securities	4		9		14		27
Interest on loans held for sale	193		326		675		917
Interest on federal funds sold and short-term investments	815		254		1,654		546
Total interest and dividend income	93,016		97,919		289,355		305,264
Interest expense
Interest on deposits	1,633		5,432		6,361		23,351
Interest on borrowings	1,292		1,604		3,965		5,628
Total interest expense	2,925		7,036		10,326		28,979
Net interest income	90,091		90,883		279,029		276,285
Provision for credit losses	(10,000)		7,500		(17,500)		52,500
Net interest income after provision for credit losses	100,091		83,383		296,529		223,785
Noninterest income
Deposit account fees	4,298		3,428		11,704		11,227
Interchange and ATM fees	3,441		3,044		9,229		13,154
Investment management	9,174		7,571		26,350		21,696
Mortgage banking income	2,825		7,704		11,270		13,570
Increase in cash surrender value of life insurance policies	1,596		1,314		4,508		3,902
Gain on life insurance benefits	—		—		258		692
Loan level derivative income	586		2,457		875		8,918
Unrealized gain on equity securities	—		308		723		1,694
Other noninterest income	4,537		3,521		11,753		9,119
Total noninterest income	26,457		29,347		76,670		83,972
Noninterest expenses
Salaries and employee benefits	42,235		38,409		124,759		113,027
Occupancy and equipment expenses	8,564		9,273		26,543		27,863
Data processing and facilities management	1,673		1,567		5,024		4,684
FDIC assessment	980		1,034		2,805		1,537
Advertising	884		1,215		2,949		3,107
Consulting expense	1,560		1,305		5,443		4,244
Amortization of intangible assets	1,310		1,449		4,037		4,704
Debit card expense	1,347		1,105		3,693		3,312
Loss on termination of derivatives	—		684		—		684
Merger and acquisition expense	1,943		—		3,674		—
Software maintenance	2,018		1,753		5,903		5,218
Other noninterest expenses	9,905		8,864		30,573		31,725
Total noninterest expenses	72,419		66,658		215,403		200,105
Income before income taxes	54,129		46,072		157,796		107,652
Provision for income taxes	14,122		11,199		38,506		21,126
Net income	$	40,007	$	34,873	$	119,290	$	86,526
Basic earnings per share	$	1.21	$	1.06	$	3.61	$	2.59
Diluted earnings per share	$	1.21	$	1.06	$	3.61	$	2.59
Weighted average common shares (basic)	33,043,716		32,951,918		33,024,386		33,358,879
Common share equivalents	15,554		24,758		18,238		27,871
Weighted average common shares (diluted)	33,059,270		32,976,676		33,042,624		33,386,750
Cash dividends declared per common share	$	0.48	$	0.46	$	1.44	$	1.38

The accompanying condensed notes are an integral part of these unaudited consolidated financial statements.

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INDEPENDENT BANK CORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited—Dollars in thousands)

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2021		2020		2021		2020
Net income	$	40,007	$	34,873	$	119,290	$	86,526
Other comprehensive income (loss), net of tax
Net change in fair value of securities available for sale	(7,897)		(709)		(11,878)		10,333
Net change in fair value of cash flow hedges	(3,383)		(2,729)		(11,559)		20,452
Net change in other comprehensive income for defined benefit postretirement plans	280		225		1,309		(322)
Total other comprehensive income (loss)	(11,000)		(3,213)		(22,128)		30,463
Total comprehensive income	$	29,007	$	31,660	$	97,162	$	116,989

The accompanying condensed notes are an integral part of these unaudited consolidated financial statements.

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INDEPENDENT BANK CORP.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Three Months Ended September 30, 2021 and 2020

(Unaudited—Dollars in thousands, except per share data)

	Common Stock Outstanding	Common Stock		Value of Shares Held in Rabbi Trust at Cost		Deferred Compensation Obligation		Additional Paid in Capital		Retained Earnings		Accumulated Other Comprehensive Income		Total
Balance June 30, 2021	33,037,859	$	329	$	(3,116)	$	3,116	$	948,130	$	763,596	$	29,567	$	1,741,622
Net income	—	—		—		—		—		40,007		—		40,007
Other comprehensive loss	—	—		—		—		—		—		(11,000)		(11,000)
Common dividend declared ($0.48 per share)	—	—		—		—		—		(15,861)		—		(15,861)
Stock based compensation	—	—		—		—		707		—		—		707
Restricted stock awards issued, net of awards surrendered	(763)	—		—		—		(3)		—		—		(3)
Shares issued under direct stock purchase plan	6,716	—		—		—		482		—		—		482
Deferred compensation and other retirement benefit obligations	—	—		(41)		41		—		—		—		—
Balance September 30, 2021	33,043,812	$	329	$	(3,157)	$	3,157	$	949,316	$	787,742	$	18,567	$	1,755,954
Balance June 30, 2020	32,942,110	$	328	$	(4,649)	$	4,649	$	942,685	$	676,834	$	51,845	$	1,671,692
Net income	—	—		—		—		—		34,873		—		34,873
Other comprehensive income	—	—		—		—		—		—		(3,213)		(3,213)
Common dividend declared ($0.46 per share)	—	—		—		—		—		(15,161)		—		(15,161)
Proceeds from exercise of stock options, net of cash paid	5,000	—		—		—		140		—		—		140
Stock based compensation	—	—		—		—		868		—		—		868
Restricted stock awards issued, net of awards surrendered	(43)	—		—		—		(3)		—		—		(3)
Shares issued under direct stock purchase plan	8,480	—		—		—		528		—		—		528
Deferred compensation and other retirement benefit obligations	—	—		(63)		63		—		—		—		—
Balance September 30, 2020	32,955,547	$	328	$	(4,712)	$	4,712	$	944,218	$	696,546	$	48,632	$	1,689,724

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INDEPENDENT BANK CORP.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Nine Months Ended September 30, 2021 and 2020

(Unaudited—Dollars in thousands, except per share data)

	Common Stock Outstanding	Common Stock		Value of Shares Held in Rabbi Trust at Cost		Deferred Compensation Obligation		Additional Paid in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total
Balance December 31, 2020	32,965,692	$	328	$	(3,066)	$	3,066	$	945,638	$	716,024	$	40,695	$	1,702,685
Net income	—	—		—		—		—		119,290		—		119,290
Other comprehensive loss	—	—		—		—		—		—		(22,128)		(22,128)
Common dividend declared ($1.44 per share)	—	—		—		—		—		(47,572)		—		(47,572)
Proceeds from exercise of stock options, net of cash paid	4,744	—		—		—		(57)		—		—		(57)
Stock based compensation	—	—		—		—		3,467		—		—		3,467
Restricted stock awards issued, net of awards surrendered	53,795	1		—		—		(1,247)		—		—		(1,246)
Shares issued under direct stock purchase plan	19,581	—		—		—		1,515		—		—		1,515
Deferred compensation and other retirement benefit obligations	—	—		(91)		91		—		—		—		—
Balance September 30, 2021	33,043,812	$	329	$	(3,157)	$	3,157	$	949,316	$	787,742	$	18,567	$	1,755,954
Balance December 31, 2019	34,377,388	$	342	$	(4,735)	$	4,735	$	1,035,450	$	654,182	$	18,169	$	1,708,143
Cumulative effect accounting adjustment (1)	—	—		—		—		—		1,553		—		1,553
Net income	—	—		—		—		—		86,526		—		86,526
Other comprehensive income	—	—		—		—		—		—		30,463		30,463
Common dividend declared ($1.38 per share)	—	—		—		—		—		(45,715)		—		(45,715)
Proceeds from exercise of stock options, net of cash paid	5,873	—		—		—		114		—		—		114
Stock based compensation	—	—		—		—		3,297		—		—		3,297
Restricted stock awards issued, net of awards surrendered	49,249	1		—		—		(1,187)		—		—		(1,186)
Shares issued under direct stock purchase plan	23,037	—		—		—		1,620		—		—		1,620
Shares repurchased under share repurchase program	(1,500,000)	(15)		—		—		(95,076)		—		—		(95,091)
Deferred compensation and other retirement benefit obligations	—	—		23		(23)		—		—		—		—
Balance September 30, 2020	32,955,547	$	328	$	(4,712)	$	4,712	$	944,218	$	696,546	$	48,632	$	1,689,724

(1)     Represents adjustment needed to reflect the cumulative impact on retained earnings pursuant to the Company's adoption of Accounting Standards Update 2016-13. The adjustment presented includes $1.1 million ($817,000, net of tax) attributable to the change in accounting methodology for estimating the allowance for credit losses and $1.0 million ($736,000, net of tax) related to the reserve for unfunded commitments resulting from the Company's adoption of the standard. Amount shown in the table above is presented net of tax.

The accompanying condensed notes are an integral part of these unaudited consolidated financial statements.

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INDEPENDENT BANK CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited—Dollars in thousands)

	Nine Months Ended
	September 30
	2021		2020
Cash flow from operating activities
Net income	$	119,290	$	86,526
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Depreciation and amortization	24,586		21,071
Change in unamortized net loan costs and premiums	(22,566)		(9,406)
Provision for credit losses	(17,500)		52,500
Deferred income tax expense	271		2,802
Net (gain) loss on equity securities	(695)		107
Net loss on bank premises and equipment	32		363
Loss on termination of derivatives	—		684
Realized gain on sale leaseback transaction	(433)		(433)
Stock based compensation	3,467		3,297
Increase in cash surrender value of life insurance policies	(4,508)		(3,902)
Gain on life insurance benefits	(258)		(692)
Operating lease payments	(8,993)		(8,899)
Operating lease termination payments	(4,750)		—
Change in fair value on loans held for sale	1,534		(1,252)
Net change in:
Trading assets	(666)		(433)
Loans held for sale	23,017		(20,154)
Other assets	16,700		(200,520)
Other liabilities	28,267		89,164
Total adjustments	37,505		(75,703)
Net cash provided by operating activities	156,795		10,823
Cash flows used in investing activities
Proceeds from sales of equity securities	1,164		—
Purchases of equity securities	(1,522)		(331)
Proceeds from maturities and principal repayments of securities available for sale	75,442		74,898
Purchases of securities available for sale	(1,106,079)		(58,704)
Proceeds from maturities and principal repayments of securities held to maturity	199,304		176,841
Purchases of securities held to maturity	(340,713)		(95,017)
Net redemption (purchases) of Federal Home Loan Bank stock	1,584		(666)
Investments in low income housing projects	(19,236)		(15,586)
Purchases of life insurance policies	(40,116)		(116)
Proceeds from life insurance policies	576		2,629
Net decrease (increase) in loans	603,773		(525,626)
Purchases of bank premises and equipment	(16,114)		(8,283)
Proceeds from the sale of bank premises and equipment	78		283
Payments on early termination of hedging relationship	—		(684)
Net cash used in investing activities	(641,859)		(450,362)
Cash flows provided by financing activities

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Net decrease in time deposits	(165,052)		(336,289)
Net increase in other deposits	1,432,037		2,040,615
Net advances of short-term Federal Home Loan Bank borrowings	—		55,000
Repayments of long-term Federal Home Loan Bank borrowings	(10,000)		(25,000)
Repayments of long-term debt, net of issuance costs	(14,063)		(37,500)
Net payments for exercise of stock options	(57)		114
Restricted stock awards issued, net of awards surrendered	(1,246)		(1,186)
Proceeds from shares issued under direct stock purchase plan	1,515		1,620
Payments for shares repurchased under share repurchase program	—		(95,091)
Common dividends paid	(46,875)		(45,681)
Net cash provided by financing activities	1,196,259		1,556,602
Net increase in cash and cash equivalents	711,195		1,117,063
Cash and cash equivalents at beginning of year	1,296,636		150,974
Cash and cash equivalents at end of period	$	2,007,831	$	1,268,037
Supplemental schedule of noncash activities
Net increase in capital commitments relating to low income housing project investments	$	34,127	$	28,027
Right-of-use assets obtained in exchange for new lease obligations	$	5,888	$	7,693

The accompanying condensed notes are an integral part of these unaudited consolidated financial statements.

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CONDENSED NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - BASIS OF PRESENTATION

Independent Bank Corp. (the “Company”) is a state chartered, federally registered bank holding company, incorporated in 1985. The Company is the sole stockholder of Rockland Trust Company (“Rockland Trust” or the “Bank”), a Massachusetts trust company chartered in 1907.

As announced on April 22, 2021, the Company has signed a definitive merger agreement under which the Company will acquire Meridian Bancorp, Inc. (“Meridian”), with the Company as the surviving entity, and East Boston Savings Bank will merge with and into Rockland trust. The Company anticipates the merger to close during the fourth quarter of 2021.

All material intercompany balances and transactions have been eliminated in consolidation. Certain previously reported amounts have been reclassified to conform to the current year’s presentation.

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements, primarily consisting of normal recurring adjustments, have been included. Results for the nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021 or any other interim period.

For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (the "2020 Form 10-K").

NOTE 2 - RECENT ACCOUNTING STANDARDS UPDATES

    Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 848 "Reference Rate Reform" Update No. 2020-04. Update No. 2020-04 was issued in March 2020 to provide optional expedients and exceptions for applying GAAP to certain contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. The amendments will not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022 for which an entity has elected certain optional expedients that are retained through the end of the hedging relationship. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022 and do not apply to contract modifications made after December 31, 2022. FASB ASC Topic 848 "Reference Rate Reform" Update No. 2021-01 was subsequently issued in January 2021 and expanded application of the optional expedients to derivative transactions affected by the discounting transition. The Company has not yet adopted the amendments in these updates, but has established a working group to guide the Company’s transition from LIBOR and has begun efforts to transition off the LIBOR index consistent with industry timelines. The working group has identified its products that utilize LIBOR and has implemented fallback language to facilitate the transition to alternative rates. The Company is also evaluating existing platforms and systems as well as alternative indices in its preparation to offer new products tied to the alternative indices.

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NOTE 3 - SECURITIES

Trading Securities

The Company had trading securities of $3.5 million and $2.8 million as of September 30, 2021 and December 31, 2020, respectively. These securities are held in a rabbi trust and will be used for future payments associated with the Company’s non-qualified 401(k) Restoration Plan and Non-qualified Deferred Compensation Plan.

Equity Securities

The Company had equity securities of $22.8 million and $22.1 million as of September 30, 2021 and December 31, 2020, respectively. These securities consist primarily of mutual funds held in a rabbi trust and will be used for future payments associated with the Company’s supplemental executive retirement plans.

The following table represents a summary of the gains and losses recognized within non-interest income and non-interest expense within the consolidated statements of income that relate to equity securities for the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2021		2020		2021		2020
	Dollars in thousands
Net gains (losses) recognized during the period on equity securities	$	(169)	$	308	695		(107)
Less: net gains recognized during the period on equity securities sold during the period	50		—		191		6
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date	$	(219)	$	308	$	504	$	(113)

Available for Sale Securities

The following table summarizes the amortized cost, allowance for credit losses, and fair value of available for sale securities and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) as of the dates indicated:

	September 30, 2021										December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for credit losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for credit losses		Fair Value
	(Dollars in thousands)
Available for sale securities
U.S. government agency securities	$	217,613	$	1,511	$	(1,779)	$	—	$	217,345	$	22,476	$	1,640	$	—	$	—	$	24,116
U.S. treasury securities	774,492		—		(4,490)		—		770,002		—		—		—		—		—
Agency mortgage-backed securities	294,387		6,120		(3,288)		—		297,219		224,293		9,337		(1)		—		233,629
Agency collateralized mortgage obligations	85,076		1,933		(522)		—		86,487		88,687		3,083		(87)		—		91,683
State, county, and municipal securities	276		12		—		—		288		790		17		—		—		807
Single issuer trust preferred securities issued by banks	489		2		—		—		491		489		—		(1)		—		488
Pooled trust preferred securities issued by banks and insurers	1,341		—		(331)		—		1,010		1,429		—		(373)		—		1,056
Small business administration pooled securities	51,718		2,650		—		—		54,368		57,289		3,792		—		—		61,081
Total available for sale securities	$	1,425,392	$	12,228	$	(10,410)	$	—	$	1,427,210	$	395,453	$	17,869	$	(462)	$	—	$	412,860

The Company did not record a provision for estimated credit losses on any available for sale securities during the three and nine months ended September 30, 2021 and 2020. Excluded from the table above is accrued interest on available for sale securities of $3.3 million and $1.2 million as of September 30, 2021 and December 31, 2020, respectively, which is included within other assets on the consolidated balance sheets. Additionally, the Company did not record any write-offs of accrued interest income on available for sale securities during the three and nine months ended September 30, 2021 and 2020.

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Furthermore, no securities held by the Company were delinquent on contractual payments nor were any securities placed on non-accrual status as of September 30, 2021 and December 31, 2020.

When securities are sold, the adjusted cost of the specific security sold is used to compute the gain or loss on the sale. The Company had no sales of securities available for sale during the three or nine months ended September 30, 2021 and 2020, and therefore no gains or losses were realized during the periods presented.

The following tables show the gross unrealized losses and fair value of the Company’s available for sale securities in an unrealized loss position, and for which the Company has not recorded a provision for credit losses, as of the dated indicated. These available for sale securities are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position:

	September 30, 2021
		Less than 12 months				12 months or longer				Total
	# of  holdings	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
U.S. government agency securities	5	$	138,262	$	(1,779)	$	—	$	—	$	138,262	$	(1,779)
U.S. treasury securities	16	770,002		(4,490)		—		—		770,002		(4,490)
Agency mortgage-backed securities	9	131,548		(3,287)		304		(1)		131,852		(3,288)
Agency collateralized mortgage obligations	1	22,994		(522)		—		—		22,994		(522)
Pooled trust preferred securities issued by banks and insurers	1	—		—		1,010		(331)		1,010		(331)
Total impaired available for sale securities	32	$	1,062,806	$	(10,078)	$	1,314	$	(332)	$	1,064,120	$	(10,410)
	December 31, 2020
		Less than 12 months				12 months or longer				Total
	# of  holdings	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
Agency mortgage-backed securities	3	$	437	$	(1)	$	—	$	—	$	437	$	(1)
Agency collateralized mortgage obligations	2	23,323		(87)		—		—		23,323		(87)
Single issuer trust preferred securities issued by banks and insurers	1	488		(1)		—		—		488		(1)
Pooled trust preferred securities issued by banks and insurers	1	—		—		1,056		(373)		1,056		(373)
Total impaired available for sale securities	7	$	24,248	$	(89)	$	1,056	$	(373)	$	25,304	$	(462)

The Company does not intend to sell these investments and has determined, based upon available evidence, that it is more likely than not that the Company will not be required to sell each security before the recovery of its amortized cost basis. In addition, management does not believe that any of the securities are impaired due to reasons of credit quality. As a result, the Company did not recognize a provision for credit losses on these investments during the three and nine months ended September 30, 2021 and 2020. The Company made this determination by reviewing various qualitative and quantitative factors regarding each investment category, such as current market conditions, extent and nature of changes in fair value, issuer rating changes and trends, volatility of earnings, and current analysts’ evaluations.

As a result of the Company’s review of these qualitative and quantitative factors, the causes of the impairments listed in the table above by category were as follows at September 30, 2021:

•U.S. Government Agency Securities, U.S. Treasury Securities, Agency Mortgage-Backed Securities and Agency Collateralized Mortgage Obligations: These portfolios have contractual terms that generally do not permit the issuer to settle the securities at a price less than the current par value of the investment. The decline in market value of these securities is attributable to changes in interest rates and not credit quality. Additionally, these securities are implicitly guaranteed by the U.S. Government or one of its agencies.

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•Pooled Trust Preferred Securities: This portfolio consists of one below investment grade security which is performing. The unrealized loss on this security is attributable to the illiquid nature of the trust preferred market in the current economic and regulatory environment. Management evaluates collateral credit and instrument structure, including current and expected deferral and default rates and timing. In addition, discount rates are determined by evaluating comparable spreads observed currently in the market for similar instruments.

Held to Maturity Securities

The following table summarizes the amortized cost, fair value and allowance for credit losses of held to maturity securities and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) as of the dates indicated:

	September 30, 2021										December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for credit losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for credit losses		Fair Value
	(Dollars in thousands)
U.S. government agency securities	$	33,422	$	—	$	(127)	$	—	$	33,295	$	—	$	—	$	—	$	—	$	—
U.S. treasury securities	3,007		17		—		—		3,024		4,017		60		—		—		4,077
Agency mortgage-backed securities	352,483		10,911		(2,781)		—		360,613		356,085		18,036		—		—		374,121
Agency collateralized mortgage obligations	451,151		5,089		(4,202)		—		452,038		335,993		8,466		(340)		—		344,119
Single issuer trust preferred securities issued by banks	1,500		8		—		—		1,508		1,500		—		(2)		—		1,498
Small business administration pooled securities	23,686		1,142		—		—		24,828		26,917		1,445		—		—		28,362
Total held to maturity securities	$	865,249	$	17,167	$	(7,110)	$	—	$	875,306	$	724,512	$	28,007	$	(342)	$	—	$	752,177

The Company did not record a provision for estimated credit losses on any held to maturity securities during the three and nine months ended September 30, 2021 and 2020. Excluded from the table above is accrued interest on held to maturity securities of $2.2 million and $1.5 million as of September 30, 2021 and December 31, 2020, respectively, which is included within other assets on the consolidated balance sheets. Additionally, the Company did not record any write-offs of accrued interest income on held to maturity securities during the three and nine months ended September 30, 2021 and 2020. Furthermore, no securities held by the Company were delinquent on contractual payments nor were any securities placed on non-accrual status as of September 30, 2021 and December 31, 2020.

When securities are sold, the adjusted cost of the specific security sold is used to compute the gain or loss on the sale. The Company had no sales of held to maturity securities during the three and nine months ended September 30, 2021 and 2020, and therefore no gains or losses were realized during the periods presented.

The Company monitors the credit quality of held to maturity securities through the use of credit ratings. Credit ratings are monitored by the Company on at least a quarterly basis. As of September 30, 2021, all held to maturity securities held by the Company were rated investment grade or higher.

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The actual maturities of certain available for sale or held to maturity securities may differ from the contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. A schedule of the contractual maturities of available for sale and held to maturity securities as of September 30, 2021 is presented below:

	Due in one year or less				Due after one year to five years				Due after five to ten years				Due after ten years				Total
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(Dollars in thousands)
Available for sale securities
U.S. government agency securities	$	10,000	$	10,066	$	31,422	$	31,275	$	176,191	$	176,004	$	—	$	—	$	217,613	$	217,345
U.S. treasury securities	—		—		541,282		538,755		233,210		231,247		—		—		774,492		770,002
Agency mortgage-backed securities	2,273		2,292		81,194		83,434		88,655		87,152		122,265		124,341		294,387		297,219
Agency collateralized mortgage obligations	—		—		—		—		—		—		85,076		86,487		85,076		86,487
State, county, and municipal securities	85		85		—		—		191		203		—		—		276		288
Single issuer trust preferred securities issued by banks	—		—		—		—		—		—		489		491		489		491
Pooled trust preferred securities issued by banks and insurers	—		—		—		—		—		—		1,341		1,010		1,341		1,010
Small business administration pooled securities	—		—		—		—		—		—		51,718		54,368		51,718		54,368
Total available for sale securities	$	12,358	$	12,443	$	653,898	$	653,464	$	498,247	$	494,606	$	260,889	$	266,697	$	1,425,392	$	1,427,210
Held to maturity securities
U.S. government agency securities	$	—	$	—	$	33,422	$	33,295	$	—	$	—	$	—	$	—	$	33,422	$	33,295
U.S. treasury securities	3,007		3,024		—		—		—		—		—		—		3,007		3,024
Agency mortgage-backed securities	—		—		3,482		3,677		125,204		125,407		223,797		231,529		352,483		360,613
Agency collateralized mortgage obligations	—		—		—		—		—		—		451,151		452,038		451,151		452,038
Single issuer trust preferred securities issued by banks	—		—		—		—		1,500		1,508		—		—		1,500		1,508
Small business administration pooled securities	—		—		—		—		—		—		23,686		24,828		23,686		24,828
Total held to maturity securities	$	3,007	$	3,024	$	36,904	$	36,972	$	126,704	$	126,915	$	698,634	$	708,395	$	865,249	$	875,306
Total	$	15,365	$	15,467	$	690,802	$	690,436	$	624,951	$	621,521	$	959,523	$	975,092	$	2,290,641	$	2,302,516

Included in the table above are $3.2 million of callable securities at September 30, 2021.

The carrying value of securities pledged to secure public funds, trust deposits, and for other purposes, as required or permitted by law, was $678.4 million and $419.6 million at September 30, 2021 and December 31, 2020, respectively.

At September 30, 2021 and December 31, 2020, the Company had no investments in obligations of individual states, counties, or municipalities which exceeded 10% of consolidated stockholders’ equity.

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NOTE 4 - LOANS, ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY

Loans Held for Investment and Allowance for Credit 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 period indicated:

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	Three Months Ended September 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	$	17,032	$	44,325	$	4,865	$	3,612	$	12,014	$	20,087	$	422	$	102,357
Charge-offs	(1)		—		—		(83)		—		—		(248)		(332)
Recoveries	1		—		—		50		—		49		121		221
Provision for credit loss expense	(1,018)		(6,527)		(397)		88		(967)		(1,268)		89		(10,000)
Ending balance (1)	$	16,014	$	37,798	$	4,468	$	3,667	$	11,047	$	18,868	$	384	$	92,246
	Three Months Ended September 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	$	25,662	$	36,956	$	4,501	$	4,561	$	15,046	$	24,860	$	590	$	112,176
Charge-offs	(185)		(3,885)		—		(49)		—		—		(185)		(4,304)
Recoveries	1		9		—		2		1		21		219		253
Provision for credit loss expense	2,741		6,306		709		79		(884)		(1,309)		(142)		7,500
Ending balance (1)	$	28,219	$	39,386	$	5,210	$	4,593	$	14,163	$	23,572	$	482	$	115,625
	Nine Months Ended September 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	(3,474)		—		—		(184)		—		(69)		(772)		(4,499)
Recoveries	100		57		—		65		1		107		523		853
Provision for credit loss expense	(1,698)		(7,268)		(929)		(1,309)		(3,229)		(3,230)		163		(17,500)
Ending balance (1)	$	16,014	$	37,798	$	4,468	$	3,667	$	11,047	$	18,868	$	384	$	92,246
	Nine Months Ended September 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	(185)		(3,885)		—		(194)		—		(142)		(1,342)		(5,748)
Recoveries	47		9		—		8		2		174		873		1,113
Provision for credit loss expense	12,698		23,038		2,809		2,538		470		10,633		314		52,500
Ending balance (1)	$	28,219	$	39,386	$	5,210	$	4,593	$	14,163	$	23,572	$	482	$	115,625

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(1)Balances of accrued interest receivable excluded from amortized cost and the calculation of allowance for credit losses amounted to $29.1 million and $36.7 million as of September 30, 2021 and September 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.

The balance of allowance for credit losses of $92.2 million as of September 30, 2021 represents a decrease of $10.1 million, or 9.9%, compared to June 30, 2021. The decrease in the allowance was primarily driven by a release of the provision for credit losses of $10.0 million recorded during the quarter, reflecting improvements in expected overall macro-economic forecast assumptions and continued strong asset quality metrics, along with lower loan levels. While management is unable to know with certainty the direct, indirect, and future impacts of the COVID-19 pandemic, it is expected that the pandemic could have a significant adverse impact on future losses across a broad range of loan segments.  As such, the allowance for credit losses at September 30, 2021 continues to reflect increased reserve allocations to loan segments that are considered to have elevated loss exposure associated with the COVID-19 pandemic, in addition to other economic uncertainties, including labor and supply shortages, as well as inflationary factors.  These loan segments primarily include commercial relationships within industries that have been subject to mandated closures and capacity limits that have impeded and could potentially impede the borrowers’ ability to make loan payments, including loans in the following industry sections: Accommodations, Food Services, Retail Trade, Other Services (excluding Public Administration), and Arts, Entertainment and Recreation.  In addition to these industry exposures, additional risk of loss was attributable to non-owner occupied real estate borrowers with significant retail tenant exposure, as well as home equity loans within a junior lien position.  Leveraging actual historical loss given default (LGD) rates combined with stressing of assumptions over probability of default rates over these higher risk segments, qualitative adjustments were made to the initially model-driven calculated loss reserves.

    For the purpose of estimating the allowance for credit losses, management segregated the loan portfolio into the portfolio segments detailed in the above tables.  Each of these loan categories possesses unique risk characteristics that are considered when determining the appropriate level of allowance for each segment.  Some of the characteristics unique to each loan category include:

Commercial Portfolio

•Commercial and Industrial: Loans in this category consist of revolving and term loan obligations extended to business and corporate enterprises for the purpose of financing working capital and/or capital investment.  Collateral generally consists of pledges of business assets including, but not limited to: accounts receivable, inventory, plant and equipment, or real estate, if applicable. Repayment sources consist of primarily, operating cash flow, and secondarily, liquidation of assets.

•Commercial Real Estate: Loans in this category consist of mortgage loans to finance investment in real property such as multi-family residential, commercial/retail, office, industrial, hotels, educational and healthcare facilities and other specific use properties.  Loans are typically written with amortizing payment structures.  Collateral values are determined based upon third party appraisals and evaluations.  Loan to value ratios at origination are governed by established policy and regulatory guidelines. Repayment sources consist of, primarily, cash flow from operating leases and rents and, secondarily, liquidation of assets.

•Commercial Construction: Loans in this category consist of short-term construction loans, revolving and nonrevolving credit lines and construction/permanent loans to finance the acquisition, development and construction or rehabilitation of real property.  Project types include residential land development, 1-4 family, condominium, and multi-family home construction, commercial/retail, office, industrial, hotels, educational and healthcare facilities and other specific use properties.  Loans may be written with nonamortizing or hybrid payment structures depending upon the type of project.  Collateral values are determined based upon third party appraisals and evaluations.  Loan to value ratios at origination are governed by established policy and regulatory guidelines.  Repayment sources vary depending upon the type of project and may consist of sale or lease of units, operating cash flows or liquidation of other assets.

•Small Business: Loans in this category consist of revolving, term loan and mortgage obligations extended to sole proprietors and small businesses for purposes of financing working capital and/or capital investment.  Collateral generally consists of pledges of business assets including, but not limited to, accounts receivable, inventory, plant and equipment, or real estate if applicable.  Repayment sources consist primarily of operating cash flows and, secondarily, liquidation of assets.

For the commercial portfolio it is the Company’s policy to obtain personal guarantees for payment from individuals holding material ownership interests in the borrowing entities.

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Consumer Portfolio

•Residential Real Estate: Residential mortgage loans held in the Company’s portfolio are made to borrowers who demonstrate the ability to make scheduled payments with full consideration to underwriting factors such as current and expected income, employment status, current assets, other financial resources, credit history and the value of the collateral.  Collateral consists of mortgage liens on 1-4 family residential properties.  Residential mortgage loans also include loans to construct owner-occupied 1-4 family residential properties.

•Home Equity: Home equity loans and credit lines are made to qualified individuals and are primarily secured by senior or junior mortgage liens on owner-occupied 1-4 family homes, condominiums or vacation homes. Each home equity loan has a fixed rate and is billed in equal payments comprised of principal and interest. The majority of home equity lines of credit have a variable rate and are billed in interest-only payments during the draw period. At the end of the draw period, the home equity line of credit is billed as a percentage of the then outstanding principal balance plus all accrued interest over a predetermined repayment period, as set forth in the note. Additionally, the Company has the option of renewing each line of credit for additional draw periods.  Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan to value ratios within established policy guidelines.

•Other Consumer: Other consumer loan products include personal lines of credit and amortizing loans made to qualified individuals for various purposes such as education, debt consolidation, personal expenses or overdraft protection.  Borrower qualifications include favorable credit history combined with supportive income and collateral requirements within established policy guidelines.  These loans may be secured or unsecured.

Credit Quality

The Company continually monitors the asset quality of the loan portfolio using all available information. Based on this information, loans demonstrating certain payment issues or other weaknesses may be categorized as adversely risk-rated, delinquent, nonperforming and/or put on nonaccrual status. Additionally, in the course of resolving such loans, the Company may choose to restructure the contractual terms of certain loans to match the borrower’s ability to repay the loan based on their current financial condition.

The Company reviews numerous credit quality indicators when assessing the risk in its loan portfolio. For the commercial portfolio, the Company utilizes a 10-point credit risk-rating system, which assigns a risk-grade to each loan obligation based on a number of quantitative and qualitative factors associated with a commercial or small business loan transaction. Factors considered include industry and market conditions, position within the industry, earnings trends, operating cash flow, asset/liability values, debt capacity, guarantor strength, management and controls, financial reporting, collateral, and other considerations. The risk-rating categories for the commercial portfolio are defined as follows:

•Pass: Risk-rating “1” through “6” comprises of loans ranging from ‘Substantially Risk Free’ which indicates borrowers are of unquestioned credit standing and the pinnacle of credit quality, well established companies with a very strong financial condition, and loans fully secured by cash collateral, through ‘Acceptable Risk’, which indicates borrowers may exhibit declining earnings, strained cash flow, increasing or above average leverage and/or weakening market fundamentals that indicate below average asset quality, margins and market share. Collateral coverage is protective.

•Potential Weakness: Borrowers exhibit potential credit weaknesses or downward trends deserving management’s close attention. If not checked or corrected, these trends will weaken the Company’s asset and position. While potentially weak, currently these borrowers are marginally acceptable; no loss of principal or interest is envisioned.

•Definite Weakness Loss Unlikely: Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt. Loans may be inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Normal repayment from the borrower is in jeopardy, although no loss of principal is envisioned. However, there is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected. Collateral coverage may be inadequate to cover the principal obligation.

•Partial Loss Probable: Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt with the added provision that the weaknesses make collection of the debt in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Serious problems exist to the point where partial loss of principal is likely.

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•Definite Loss: Borrowers deemed incapable of repayment. Loans to such borrowers are considered uncollectible and of such little value that continuation as active assets of the Company is not warranted.

The Company utilizes a comprehensive, continuous strategy for evaluating and monitoring commercial credit quality. Initially, credit quality is determined at loan origination and is re-evaluated when subsequent actions, such as renewals, modifications or reviews, occur. Actively managed commercial borrowers are required to provide updated financial information at least annually which is carefully evaluated for any changes in credit quality. Larger loan relationships are subject to a full annual credit review by experienced credit professionals, while continuous portfolio monitoring techniques are employed to evaluate changes in credit quality for smaller loan relationships. Any changes in credit quality are reflected in risk-rating changes. Additionally, the Company retains an independent loan review firm to evaluate the credit quality of the commercial loan portfolio. The independent loan review process achieves significant penetration into the commercial loan portfolio and reports the results of these reviews to the Audit Committee of the Board of Directors on a quarterly basis. Commercial loan modifications granted by the Company allowing payment deferrals for qualifying borrowers in accordance with the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") were assessed for potential downgrades of risk ratings.

For the Company’s consumer portfolio, the quality of the loan is best indicated by the repayment performance of an individual borrower. As a result, for this portfolio the Company utilizes a pass/default risk-rating system, based on an age analysis (i.e., days past due) associated with each consumer loan. Under this structure, consumer loans less than 90 days past due are assigned a "pass" rating, while any consumer loans 90 days or more past due are assigned a "default" rating. Consumer loan modifications granted by the Company allowing payment deferrals for qualifying borrowers in accordance with the CARES Act were not categorized as delinquent loans.

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:

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	September 30, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving converted to Term		Total (1)
	(Dollars in thousands)
Commercial and industrial
Pass (2)	$	590,532	$	185,706	$	97,095	$	74,381	$	15,175	$	16,731	$	605,718	$	66	$	1,585,404
Potential weakness	1,338		9,035		3,286		1,672		980		1,632		10,262		—		28,205
Definite weakness - loss unlikely	16,597		332		793		1,034		2,678		214		5,452		—		27,100
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	608,467	$	195,073	$	101,174	$	77,087	$	18,833	$	18,577	$	621,432	$	66	$	1,640,709
Commercial real estate
Pass	$	699,565	$	1,019,453	$	606,645	$	347,874	$	442,306	$	794,263	$	17,068	$	—	$	3,927,174
Potential weakness	22,106		29,091		51,976		14,628		21,350		82,655		13,615		—		235,421
Definite weakness - loss unlikely	9,331		16,336		3,399		13,657		9,762		6,179		—		—		58,664
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	$	731,002	$	1,064,880	$	662,020	$	376,159	$	473,418	$	883,097	$	30,683	$	—	$	4,221,259
Commercial construction
Pass	$	127,945	$	216,573	$	82,559	$	22,851	$	22,873	$	6,505	$	16,424	$	2,134	$	497,864
Potential weakness	—		12,991		—		—		—		—		—		—		12,991
Definite weakness - loss unlikely	—		4,560		—		—		—		—		—		—		4,560
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial construction	$	127,945	$	234,124	$	82,559	$	22,851	$	22,873	$	6,505	$	16,424	$	2,134	$	515,415
Small business
Pass	$	40,736	$	38,804	$	22,075	$	14,241	$	10,675	$	21,809	$	32,679	$	—	$	181,019
Potential weakness	14		—		383		200		5		174		627		—		1,403
Definite weakness - loss unlikely	138		637		41		26		10		284		580		—		1,716
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total small business	$	40,888	$	39,441	$	22,499	$	14,467	$	10,690	$	22,267	$	33,886	$	—	$	184,138
Residential real estate
Pass	$	277,949	$	184,974	$	92,723	$	97,915	$	102,581	$	463,397	$	—	$	—	$	1,219,539
Default	—		123		—		1,024		—		2,163		—		—		3,310
Total residential real estate	$	277,949	$	185,097	$	92,723	$	98,939	$	102,581	$	465,560	$	—	$	—	$	1,222,849
Home equity
Pass	$	58,897	$	68,629	$	42,083	$	37,644	$	41,792	$	117,488	$	628,575	$	3,575	$	998,683
Default	—		—		—		—		—		33		1,717		35		1,785
Total home equity	$	58,897	$	68,629	$	42,083	$	37,644	$	41,792	$	117,521	$	630,292	$	3,610	$	1,000,468
Other consumer
Pass	$	307	$	347	$	244	$	78	$	500	$	5,338	$	16,359	$	—	$	23,173
Default	—		—		—		—		—		—		2		—		2
Total other consumer	$	307	$	347	$	244	$	78	$	500	$	5,338	$	16,361	$	—	$	23,175
Total	$	1,845,455	$	1,787,591	$	1,003,302	$	627,225	$	670,687	$	1,518,865	$	1,349,078	$	5,810	$	8,808,013

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	September 30, 2020
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving converted to Term		Total (1)
	(Dollars in thousands)
Commercial and industrial
Pass (2)	$	1,012,974	$	153,137	$	107,318	$	34,826	$	23,065	$	22,334	$	601,937	$	2,577	$	1,958,168
Potential weakness	2,560		2,302		7,833		4,573		1,219		318		15,248		50		34,103
Definite weakness - loss unlikely	2,732		1,553		22,748		5,500		2,483		1,419		33,496		—		69,931
Partial loss probable	—		—		—		—		—		143		—		—		143
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	1,018,266	$	156,992	$	137,899	$	44,899	$	26,767	$	24,214	$	650,681	$	2,627	$	2,062,345
Commercial real estate
Pass	$	753,415	$	859,548	$	512,371	$	587,345	$	399,442	$	751,629	$	39,998	$	16,341	$	3,920,089
Potential weakness	20,639		15,957		20,313		7,941		27,253		47,875		—		—		139,978
Definite weakness - loss unlikely	4,261		2,265		10,092		21,081		2,170		6,605		—		—		46,474
Partial loss probable	—		—		18,923		—		—		—		—		—		18,923
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	$	778,315	$	877,770	$	561,699	$	616,367	$	428,865	$	806,109	$	39,998	$	16,341	$	4,125,464
Commercial construction
Pass	$	182,291	$	196,420	$	73,298	$	66,406	$	—	$	6,750	$	31,372	$	1,077	$	557,614
Potential weakness	—		9,352		5,037		—		—		—		328		—		14,717
Definite weakness - loss unlikely	—		—		1,003		—		—		—		—		—		1,003
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial construction	$	182,291	$	205,772	$	79,338	$	66,406	$	—	$	6,750	$	31,700	$	1,077	$	573,334
Small business
Pass	$	27,457	$	28,766	$	20,806	$	14,627	$	14,528	$	22,644	$	34,569	$	—	$	163,397
Potential weakness	—		10		16		10		755		232		736		—		1,759
Definite weakness - loss unlikely	184		408		78		170		98		723		786		—		2,447
Partial loss probable	—		—		—		—		—		—		29		—		29
Definite loss	—		—		—		—		—		—		—		—		—
Total small business	$	27,641	$	29,184	$	20,900	$	14,807	$	15,381	$	23,599	$	36,120	$	—	$	167,632
Residential real estate
Pass	$	131,691	$	167,901	$	187,194	$	168,048	$	241,638	$	449,219	$	—	$	—	$	1,345,691
Default	728		—		760		235		167		4,724		—		—		6,614
Total residential real estate	$	132,419	$	167,901	$	187,954	$	168,283	$	241,805	$	453,943	$	—	$	—	$	1,352,305
Home equity
Pass	$	60,274	$	66,238	$	59,534	$	59,387	$	44,817	$	122,397	$	681,784	$	4,057	$	1,098,488
Default	—		—		—		—		—		455		2,044		67		2,566
Total home equity	$	60,274	$	66,238	$	59,534	$	59,387	$	44,817	$	122,852	$	683,828	$	4,124	$	1,101,054
Other consumer
Pass	$	679	$	450	$	209	$	739	$	696	$	7,737	$	12,493	$	—	$	23,003
Default	—		—		—		20		—		34		2		—		56
Total other consumer	$	679	$	450	$	209	$	759	$	696	$	7,771	$	12,495	$	—	$	23,059

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Total $ 2,199,885  $ 1,504,307  $ 1,047,533  $ 970,908  $ 758,331  $ 1,445,238  $ 1,454,822  $ 24,169  $ 9,405,193 

(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 $383.6 million as of September 30, 2021, including $16.3 million and $367.3 million originated in 2020 and 2021, respectively, while outstanding PPP loans as of September 30, 2020 totaled $811.7 million.

    For the Company’s consumer portfolio, the quality of the loan is best indicated by the repayment performance of an individual borrower. However, the Company does supplement performance data with current Fair Isaac Corporation (“FICO”) scores and Loan to Value (“LTV”) estimates. Current FICO data is purchased and appended to all consumer loans on a regular basis. In addition, automated valuation services and broker opinions of value are used to supplement original value data for the residential real estate and home equity portfolios, periodically. The following table shows the weighted average FICO scores and the weighted average combined LTV ratios at the dates indicated below:

	September 30 2021		December 31 2020
Residential real estate portfolio
FICO score (re-scored)(1)	750		749
LTV (re-valued)(2)	55.4	%	57.4	%
Home equity portfolio
FICO score (re-scored)(1)	773		771
LTV (re-valued)(2)(3)	43.3	%	46.0	%

(1)The average FICO scores at September 30, 2021 are based upon rescores from September 2021, as available for previously originated loans, or origination score data for loans booked in September 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 September 30, 2021 are based upon updated automated valuations as of August 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.

Unfunded Commitments

Management evaluates the need for a reserve on unfunded lending commitments in a manner consistent with loans held for investment. At September 30, 2021 and December 31, 2020, the Company's estimated reserve for unfunded commitments amounted to $1.3 million and $1.2 million, respectively.

Asset Quality

The Company’s philosophy toward managing its loan portfolios is predicated upon careful monitoring, which stresses early detection and response to delinquent and default situations. Delinquent loans are managed by a team of collection specialists and the Company seeks to make arrangements to resolve any delinquent or default situation over the shortest possible time frame.  As a general rule, loans 90 days or more past due with respect to principal or interest are classified as nonaccrual loans. The Company also may use discretion regarding other loans 90 days or more delinquent if the loan is well secured and/or in process of collection.

In response to the COVID-19 pandemic, the Company has granted loan modifications to allow deferral of payments for borrowers negatively impacted by the pandemic. The balance of loans with active deferrals as of September 30, 2021 and December 31, 2020 was $222.9 million and $173.6 million, respectively. The majority of these loans with active deferrals as of September 30, 2021 continue to be characterized as current loans. In accordance with regulatory guidance, these modifications are not considered to be troubled debt restructures ("TDRs") if they were performing as of December 31, 2019. Additionally, a majority of these modified loans are characterized as current and therefore are not impacting nonaccrual or delinquency totals as of September 30, 2021 and December 31, 2020. The Company does, however, consider all active deferrals when estimating loss reserves. As loans reach their deferral maturity date, consideration of TDR and delinquency status will resume in accordance with the Company's accounting policy.

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

	Nonaccrual Balances
	September 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	$	3,468	$	15,807	$	19,275	$	3,804	$	30,925	$	34,729
Commercial real estate	8,541		3,247		11,788		10,195		—		10,195
Small business	46		—		46		815		10		825
Residential real estate	6,486		4,386		10,872		10,935		4,593		15,528
Home equity	3,746		—		3,746		5,427		—		5,427
Other consumer	83		—		83		156		—		156
Total nonaccrual loans (1)	$	22,370	$	23,440	$	45,810	$	31,332	$	35,528	$	66,860

(1)Included in these amounts were $21.1 million and $22.2 million of nonaccruing TDRs at September 30, 2021 and December 31, 2020, respectively.

    It is the Company's policy to reverse any accrued interest when a loan is put on nonaccrual status, and, as such, the Company did not record any interest income on nonaccrual loans during the nine months ended September 30, 2021 and September 30, 2020.

In accordance with government moratorium orders established in response to the COVID-19 pandemic, new foreclosures pursued by the Company were on hold through August 31, 2021, at which point such orders were lifted. The following table shows information regarding foreclosed residential real estate property at the dates indicated:

	September 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	$	1,215	$	1,750

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

	September 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	2	$	343	1	$	87	—	$	—	3	$	430	$	1,640,279	$	1,640,709	$	—
Commercial real estate	6	5,142		1	487		5	3,674		12	9,303		4,211,956		4,221,259		—
Commercial construction	—	—		—	—		—	—		—	—		515,415		515,415		—
Small business	8	243		2	35		5	27		15	305		183,833		184,138		—
Residential real estate	13	2,037		2	848		22	2,822		37	5,707		1,217,142		1,222,849		—
Home equity	9	479		5	218		24	1,784		38	2,481		997,987		1,000,468		—
Other consumer (1)	230	109		12	32		3	2		245	143		23,032		23,175		—
Total	268	$	8,353	23	$	1,707	59	$	8,309	350	$	18,369	$	8,789,644	$	8,808,013	$	—

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	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.

Troubled Debt Restructurings

In the course of resolving nonperforming loans, the Bank may choose to restructure the contractual terms of certain loans. The Bank attempts to work out an alternative payment schedule with the borrower in order to avoid foreclosure actions. Any loans that are modified are reviewed by the Bank to identify if a TDR has occurred, which is when, for economic or legal reasons related to a borrower’s financial difficulties, the Bank grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status and the restructuring of the loan may include the transfer of assets from the borrower to satisfy the debt, a modification of loan terms, or a combination of the two.

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

		September 30, 2021		December 31, 2020
	(Dollars in thousands)
TDRs on accrual status		$	15,950	$	16,983
TDRs on nonaccrual		21,104		22,209
Total TDRs		$	37,054	$	39,192
Additional commitments to lend to a borrower who has been a party to a TDR		$	352	$	263

The Company’s policy is to have any restructured loan which is on nonaccrual status prior to being modified remain on nonaccrual status for six months subsequent to being modified before management considers its return to accrual status. If the restructured loan is on accrual status prior to being modified, it is reviewed to determine if the modified loan should remain on accrual status. Additionally, loans classified as TDRs are adjusted to reflect the changes in value of the recorded investment in the loan, if any, resulting from the granting of a concession. For all residential real estate loan modifications, the borrower must perform during a 90 day trial period before the modification is finalized.

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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					Nine Months Ended
	September 30, 2021					September 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	—	—		—		2	189		189
Total (1)	—	$	—	$	—	8	$	18,301	$	18,301

	Three Months Ended					Nine Months Ended
	September 30, 2020					September 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	2	$	83	$	83	5	$	391	$	391
Commercial real estate	3	744		744		8	2,518		2,518
Small business	—	—		—		2	112		88
Residential real estate	—	—		—		2	559		642
Total (1)	5	$	827	$	827	17	$	3,580	$	3,639

(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 September 30, 2021, $14.3 million of modifications on existing TDRs during the nine months ended September 30, 2021, and $83,000 and $1.5 million of modifications on existing TDRs during the three and nine months ended September 30, 2020, respectively.

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

	Three Months Ended		Nine Months Ended
	September 30		September 30
	2021	2020	2021		2020
	(Dollars in thousands)
Adjusted interest rate	—	218	$	—	$	822
Combination rate and maturity	—	—	14,148		—
Court ordered concession	—	—	—		25
Extended maturity	—	609	4,153		2,792
Total	—	827	$	18,301	$	3,639

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The Company considers a loan to have defaulted when it reaches 90 days past due. There was one commercial real estate loan modified during the preceding twelve months with a recorded investment of $3.2 million, which subsequently defaulted during the nine month period ended September 30, 2021. There were no defaults on such loans modified during the prior twelve months for the three and nine month periods ended September 30, 2020, respectively. The Company determines the amount of allowance on TDRs in accordance with CECL methodology using a discounted cash flow approach, or a fair value of collateral approach if the loan is determined to be individually evaluated.

NOTE 5 - STOCK BASED COMPENSATION

During the nine months ended September 30, 2021, the Company had the following activity related to stock based compensation:

Time Vested Restricted Stock Awards

The Company made the following awards of time vested restricted stock:

Date	Shares Granted	Plan	Grant Date Fair Value Per Share		Vesting Period
2/18/2021	49,550	2005 Employee Stock Plan	$	81.84	Ratably over 5 years from grant date
5/25/2021	7,680	2018 Non-Employee Director Stock Plan	$	78.18	Shares vested immediately
9/1/2021	640	2018 Non-Employee Director Stock Plan	$	76.78	Shares vested immediately

Performance-Based Restricted Stock Awards

    On February 18, 2021, the Company granted 18,900 performance-based restricted stock awards to certain executive level employees. These performance-based restricted stock awards were issued from the 2005 Employee Stock Plan and were determined to have a grant date fair value per share of $81.84. The number of shares to be vested are contingent upon the Company's attainment of certain performance criteria to be measured at the end of a three year performance period, ending December 31, 2023. The awards will vest upon the earlier of the date on which it is determined if the performance goal is achieved subsequent to the performance period or March 31, 2024.

    On March 12, 2021, the performance-based restricted stock awards that were awarded on February 15, 2018 vested at 85% of the maximum target shares awarded, or 13,005 shares.

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NOTE 6 - DERIVATIVE AND HEDGING ACTIVITIES

The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally to manage the Company’s interest rate risk. Additionally, the Company enters into interest rate derivatives, foreign exchange contracts and risk participation agreements to accommodate the business requirements of its customers (“customer related positions”). The Company minimizes the market and liquidity risks of customer related positions by entering into similar offsetting positions with broker-dealers. Derivative instruments are carried at fair value in the Company's financial statements. The accounting for changes in the fair value of a derivative instrument is dependent upon whether or not it qualifies as a hedge for accounting purposes, and further, by the type of hedging relationship.

The Company does not enter into proprietary trading positions for any derivatives.

The Company is subject to over-the-counter derivative clearing requirements which require certain derivatives to be cleared through central clearing houses. Accordingly, the Company clears certain derivative transactions through the Chicago Mercantile Exchange Clearing House ("CME"). This clearing house requires the Company to post initial and variation margin to mitigate the risk of non-payment, the latter of which is received or paid daily based on the net asset or liability position of the contracts.

Interest Rate Positions

The Company may utilize various interest rate derivatives as hedging instruments against interest rate risk associated with the Company’s borrowings and loan portfolios. An interest rate derivative is an agreement whereby one party agrees to pay a floating rate of interest on a notional principal amount in exchange for receiving a fixed rate of interest on the same notional amount, for a predetermined period of time, from a second party. The amounts relating to the notional principal amount are not actually exchanged.

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The following tables reflect the Company's derivative positions as of the dates indicated below for interest rate derivatives which qualify as cash flow hedges for accounting purposes:

September 30, 2021
				Weighted Average Rate
	Notional Amount		Average Maturity	Current Rate Received		Pay Fixed Swap Rate		Fair Value
	(in thousands)		(in years)					(in thousands)
Interest rate swaps on borrowings	$	75,000	0.43	0.12	%	1.53	%	$	(593)
				Current Rate Paid		Receive Fixed Swap Rate
Interest rate swaps on loans	550,000		2.83	0.08	%	2.16	%	18,016
				Current Rate Paid		Receive Fixed Swap Rate Cap - Floor
Interest rate collars on loans	400,000		1.91	0.08	%	2.73% - 2.20%		13,971
Total	$	1,025,000						$	31,394
December 31, 2020
				Weighted Average Rate
	Notional Amount		Average Maturity	Current Rate Received		Pay Fixed Swap Rate		Fair Value
	(in thousands)		(in years)					(in thousands)
Interest rate swaps on borrowings	$	75,000	1.18	0.22	%	1.53	%	$	(1,341)
				Current Rate Paid		Receive Fixed Swap Rate
Interest rate swaps on loans	450,000		2.66	0.15	%	2.37	%	27,021
				Current Rate Paid		Receive Fixed Swap Rate Cap - Floor
Interest rate collars on loans	400,000		2.66	0.15	%	2.73% - 2.20%		21,764
Total	$	925,000						$	47,444

The maximum length of time over which the Company is currently hedging its exposure to the variability in future cash flows for forecasted transactions related to the payment of variable interest on existing financial instruments is 7.5 years.

For derivative instruments that are designated and qualify as cash flow hedging instruments, the effective portion of the gains or losses is reported as a component of other comprehensive income ("OCI"), and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings.  The Company expects approximately $19.0 million (pre-tax) to be reclassified as an increase to interest income and $509,000 (pre-tax) to be reclassified as an increase to interest expense, from OCI related to the Company’s cash flow hedges in the next twelve months.  This reclassification is due to anticipated payments that will be made and/or received on the swaps based upon the forward curve as of September 30, 2021.

The Company had no fair value hedges as of September 30, 2021 or December 31, 2020.

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Customer Related Positions

Loan level derivatives, primarily interest rate swaps, offered to commercial borrowers through the Company’s loan level derivative program do not qualify as hedges for accounting purposes. The Company believes that its exposure to commercial customer derivatives is limited because these contracts are simultaneously matched at inception with an offsetting dealer transaction. Derivatives with dealer counterparties are then either cleared through a clearinghouse or settled directly with a single counterparty. The commercial customer derivative program allows the Company to retain variable-rate commercial loans while allowing the customer to synthetically fix the loan rate by entering into a variable-to-fixed interest rate swap. The amounts relating to the notional principal amount are not actually exchanged.

Foreign exchange contracts offered to commercial borrowers through the Company’s derivative program do not qualify as hedges for accounting purposes. The Company acts as a seller and buyer of foreign exchange contracts to accommodate its customers. To mitigate the market and liquidity risk associated with these derivatives, the Company enters into similar offsetting positions. The amounts relating to the notional principal amount are exchanged.

The Company has entered into risk participation agreements with other dealer banks in commercial loan agreements. Participating banks guarantee the performance on borrower-related interest rate swap contracts. These derivatives are not designated as hedges and, therefore, changes in fair value are recognized in earnings. Under a risk participation-out agreement, a derivative asset, the Company participates out a portion of the credit risk associated with the interest rate swap position executed with the commercial borrower for a fee paid to the participating bank. Under a risk participation-in agreement, a derivative liability, the Company assumes, or participates in, a portion of the credit risk associated with the interest rate swap position with the commercial borrower for a fee received from the other bank.

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The following table reflects the Company’s customer related derivative positions as of the dates indicated below for those derivatives not designated as hedging:

		Notional Amount Maturing
	Number of  Positions  (1)	Less than 1 year		Less than 2 years		Less than 3 years		Less than 4 years		Thereafter		Total		Fair Value
	September 30, 2021
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	293	$	30,047	$	148,874	$	129,939	$	288,580	$	980,166	$	1,577,606	$	67,126
Pay fixed, receive variable	293	30,047		148,874		129,939		288,580		980,166		1,577,606		(67,122)
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	45	148,253		6,087		—		—		—		154,340		(5,529)
Buys U.S. currency, sells foreign currency	45	148,253		6,087		—		—		—		154,340		5,530
Risk participation agreements
Participation out	11	—		2,645		—		31,719		67,767		102,131		236
Participation in	7	18,450		23,375		16,768		—		8,372		66,965		(64)
		Notional Amount Maturing
	Number of  Positions  (1)	Less than 1 year		Less than 2 years		Less than 3 years		Less than 4 years		Thereafter		Total		Fair Value
	December 31, 2020
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	322	$	102,999	$	76,487	$	149,265	$	147,422	$	1,222,557	$	1,698,730	$	127,226
Pay fixed, receive variable	313	102,999		76,487		149,265		147,422		1,222,557		1,698,730		(127,216)
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	33	87,557		5,300		—		—		—		92,857		(4,214)
Buys U.S. currency, sells foreign currency	33	87,557		5,300		—		—		—		92,857		4,224
Risk participation agreements
Participation out	12	6,721		—		2,675		7,307		93,378		110,081		512
Participation in	8	—		30,649		29,072		—		15,844		75,565		(118)

(1)The Company may enter into one dealer swap agreement which offsets multiple commercial borrower swap agreements.

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Mortgage Derivatives

The Company enters into commitments to fund residential mortgage loans at specified rates and times in the future, with the intention that loans may be sold subsequently in the secondary market. Mortgage loan commitments are referred to as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. These commitments are recognized at fair value on the consolidated balance sheet in other assets and other liabilities with changes in their fair values recorded within mortgage banking income. In addition, the Company has elected the fair value option to carry loans held for sale at fair value. The change in fair value of loans held for sale is recorded in current period earnings as a component of mortgage banking income in accordance with the Company's fair value election. The fair value of loans held for sale decreased by $75,000 and increased by $413,000 for the three month periods ended September 30, 2021 and 2020, respectively. The fair value of loans held for sale decreased by $1.5 million and increased by $1.3 million for the nine month periods ended September 30, 2021 and 2020, respectively. These amounts were offset in earnings by the change in the fair value of mortgage derivatives.

Outstanding loan commitments expose the Company to the risk that the price of the loans arising from exercise of the loan commitment might change from inception of the rate lock to funding of the loan due to changes in mortgage interest rates. If interest rates increase, the value of these loan commitments decreases. Conversely, if interest rates decrease, the value of these loan commitments increases. To protect against the price risk inherent in derivative loan commitments, the Company utilizes both "mandatory delivery" and "best efforts" forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. Mandatory delivery contracts are accounted for as derivative instruments. Included in the mandatory delivery forward commitments are To Be Announced securities ("TBAs"). Certain assumptions, including pull through rates and rate lock periods, are used in managing the existing and future hedges. The accuracy of underlying assumptions will impact the ultimate effectiveness of any hedging strategies.

With mandatory delivery contracts, the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date. If the Company fails to deliver the amount of mortgages necessary to fulfill the commitment by the specified date, it is obligated to pay a "pair-off" fee, based on then-current market prices, to the investor/counterparty to compensate the investor for the shortfall. Generally, the Company makes this type of commitment once mortgage loans have been funded and are held for sale, in order to minimize the risk of failure to deliver the requisite volume of loans to the investor and paying pair-off fees as a result. The Company also sells TBA securities to offset potential changes in the fair value of derivative loan commitments. Generally, the Company sells TBA securities by entering into derivative loan commitments for settlement in 30 to 90 days. The Company expects that mandatory delivery contracts, including TBA securities, will experience changes in fair value opposite to the changes in the fair value of derivative loan commitments.

With best effort contracts, the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the loan to the underlying borrower closes. Generally, best efforts cash contracts have no pair off risk regardless of market movement. The price the investor will pay the seller for an individual loan is specified prior to the loan being funded (e.g., on the same day the lender commits to lend funds to a potential borrower). The Company expects that these best efforts forward loan sale commitments will experience a net neutral shift in fair value with related derivative loan commitments.

The aggregate amount of net realized gains or losses on sales of such loans included within mortgage banking income was $4.9 million and $10.0 million for the three month periods ended September 30, 2021 and 2020, respectively, and $17.2 million and $20.7 million for the nine months ended September 30, 2021 and 2020, respectively.

Balance Sheet Offsetting

The Company does not offset fair value amounts recognized for derivative instruments. The Company does net the amount recognized for the right to reclaim cash collateral against the obligation to return cash collateral arising from derivative instruments executed with the same counterparty under a master netting arrangement. Collateral legally required to be maintained at dealer banks by the Company is monitored and adjusted as necessary.

A daily settlement occurs through the CME for changes in the fair value of centrally cleared derivatives. Not all of the derivatives are required to be cleared through the daily clearing agent. As a result, the total fair values of loan level derivative assets and liabilities recognized on the Company's financial statements are not equal and offsetting.

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The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the balance sheet and the potential effect of netting arrangements on its financial position, at the dates indicated:

	Asset Derivatives (1)						Liability Derivatives (2)
	Fair Value at			Fair Value at			Fair Value at			Fair Value at
	September 30 2021			December 31 2020			September 30 2021			December 31 2020
	(Dollars in thousands)
Derivatives designated as hedges
Interest rate derivatives	$	32,380	(3)	$	48,786	(3)	$	986	(4)	$	1,342	(4)
Derivatives not designated as hedges
Customer Related Positions
Loan level derivatives	76,552		(3)	127,228		(3)	76,548		(4)	127,218		(4)
Foreign exchange contracts	5,531			4,359			5,530			4,349
Risk participation agreements	236			513			64			119
Mortgage Derivatives
Interest rate lock commitments	1,202			6,513			—			—
Forward sale loan commitments	—			—			22			1
Forward sale hedge commitments	457			—			—			1,035
Total derivatives not designated as hedges	83,978			138,613			82,164			132,722
Total	116,358			187,399			83,150			134,064
Netting Adjustments (5)	(4,808)			23			6,454			16,105
Net Derivatives on the Balance Sheet	111,550			187,422			76,696			117,959
Financial instruments (6)	36,914			48,786			36,914			48,786
Cash collateral pledged (received)	—			—			33,249			62,460
Net Derivative Amounts	$	74,636		$	138,636		$	6,533		$	6,713

(1)All asset derivatives are located in other assets on the balance sheet.

(2)All liability derivatives are located in other liabilities on the balance sheet.

(3)Approximately $1.2 million and $1.6 million of accrued interest receivable is included in the fair value of the interest rate and loan level asset derivatives, respectively, as of September 30, 2021. Accrued interest receivable of approximately $1.2 million and $2.0 million is included in the fair value of the interest rate and loan level asset derivatives, respectively, as of December 31, 2020.

(4)Approximately $60,000 and $1.6 million of accrued interest payable is included in the fair value of the interest rate and loan level liability derivatives, respectively, as of September 30, 2021. Accrued interest payable of approximately $81,000 and $2.0 million is included in the fair value of the interest rate and loan level derivative liabilities, respectively, as of December 31, 2020.

(5)Netting adjustments represent the amounts recorded to convert derivative assets and liabilities cleared through CME from a gross basis to a net basis, inclusive of the variation margin payments, in accordance with applicable accounting guidance. As displayed in the table above, derivatives that cleared through the CME were either in a net asset position or a net liability position as of September 30, 2021.

(6)Reflects offsetting derivative positions with the same counterparty that are not netted on the balance sheet.

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The table below presents the effect of the Company’s derivative financial instruments included in OCI and current earnings for the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2021		2020		2021		2020
	(Dollars in thousands)
Derivatives designated as hedges
Gain (loss) in OCI on derivatives (effective portion), net of tax	$	(3,383)	$	(2,729)	$	(11,559)	$	20,452
Gain reclassified from OCI into interest income or interest expense (effective portion)	$	4,791	$	4,339	$	13,869	$	9,901
Loss reclassified from OCI into noninterest expense (loss on termination)	$	—	$	(684)	$	—	$	(684)
Interest expense	$	—	$	—	$	—	$	—
Other expense	—		—		—		—
Total	$	—	$	—	$	—	$	—
Derivatives not designated as hedges
Changes in fair value of customer related positions
Other income	$	54	$	21	$	137	$	46
Other expense	(80)		(28)		(374)		(52)
Changes in fair value of mortgage derivatives
Mortgage banking income	(213)		2,027		(3,840)		4,653
Total	$	(239)	$	2,020	$	(4,077)	$	4,647

    The Company's derivative agreements with institutional counterparties contain various credit-risk related contingent provisions, such as requiring the Company to maintain a well-capitalized capital position. If the Company fails to meet these conditions, the counterparties could request the Company make immediate payment or demand that the Company provide immediate and ongoing full collateralization on derivative positions in net liability positions. The aggregate fair value of all derivative instruments with credit-risk related contingent features that were in a net liability position was $35.9 million and $79.8 million at September 30, 2021 and December 31, 2020, respectively. Although none of the contingency provisions have applied as of September 30, 2021 and December 31, 2020, the Company has posted collateral to offset the net liability exposure with institutional counterparties.

    By using derivatives, the Company is exposed to credit risk to the extent that counterparties to the derivative contracts do not perform as required. Should a counterparty fail to perform under the terms of a derivative contract, the Company's credit exposure on interest rate swaps is limited to the net positive fair value and accrued interest of all swaps with each counterparty. The Company seeks to minimize counterparty credit risk through credit approvals, limits, monitoring procedures, and obtaining collateral, where appropriate. Institutional counterparties must have an investment grade credit rating and be approved by the Company's Board of Directors. As such, management believes the risk of incurring credit losses on derivative contracts with institutional counterparties is remote. The Company's exposure relating to institutional counterparties was $37.1 million and $48.8 million at September 30, 2021 and December 31, 2020, respectively. The Company’s exposure relating to customer counterparties was approximately $71.8 million and $127.2 million at September 30, 2021 and December 31, 2020, respectively. Credit exposure may be reduced by the value of collateral pledged by the counterparty.

NOTE 7 - FAIR VALUE MEASUREMENTS

Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the assumptions applied by the Company when determining fair value reflect those that the Company determines market participants would use to price the asset or liability at the measurement date. If there has been a significant decrease in the volume and level of activity for the asset or liability, regardless of the valuation technique(s) used, the objective of a fair value measurement remains the same. Fair value is the price that would be received if the asset were to be sold or that would be or paid if the liability were to be transferred in an orderly market transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. When determining fair value, the Company considers pricing information and other inputs that are current as of the measurement date. In periods of market dislocation, the observability of prices and other inputs

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may be reduced for certain instruments, or not available at all. The unavailability or reduced availability of pricing or other input information could cause an instrument to be reclassified from one level to another.

The Fair Value Measurements and Disclosures Topic of the FASB ASC defines fair value and establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under the Fair Value Measurements and Disclosures Topic of the FASB ASC are described below:

Level 1 – Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 – Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

Valuation Techniques

There have been no changes in the valuation techniques used during the nine months ended September 30, 2021.

Securities

Trading and Equity Securities

These equity securities are valued based on market quoted prices. These securities are categorized in Level 1 as they are actively traded and no valuation adjustments have been applied.

U.S. Government Agency and U.S. Treasury Securities

Fair value is estimated using either multi-dimensional spread tables or benchmarks. The inputs used include benchmark yields, reported trades, and broker/dealer quotes. These securities are classified as Level 2.

Agency Mortgage-Backed Securities

Fair value is estimated using either a matrix or benchmarks. The inputs used include benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. These securities are categorized as Level 2.

Agency Collateralized Mortgage Obligations and Small Business Administration Pooled Securities

The valuation model for these securities is volatility-driven and ratings based, and uses multi-dimensional spread tables. The inputs used include benchmark yields, reported trades, new issue data, broker dealer quotes, and collateral performance. If there is at least one significant model assumption or input that is not observable, these securities are categorized as Level 3 within the fair value hierarchy; otherwise, they are classified as Level 2.

State, County, and Municipal Securities

The fair value is estimated using a valuation matrix with inputs including bond interest rate tables, recent transactions, and yield relationships. These securities are categorized as Level 2.

Single and Pooled Issuer Trust Preferred Securities

The fair value of trust preferred securities, including pooled and single issuer preferred securities, is estimated using external pricing models, discounted cash flow methodologies or similar techniques. The inputs used in these valuations include benchmark yields, reported trades, new issue data, broker dealer quotes, and collateral performance. If there is at least one significant model assumption or input that is not observable, these securities are classified as Level 3 within the fair value hierarchy; otherwise, they are classified as Level 2.

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Loans Held for Sale

The Company has elected the fair value option to account for originated closed loans intended for sale. The fair value is measured on an individual loan basis using quoted market prices and when not available, comparable market value or discounted cash flow analysis may be utilized. These assets are typically classified as Level 2.

Derivative Instruments

Derivatives

The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilizes. The Company incorporates credit valuation adjustments to appropriately reflect nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings. Additionally, in conjunction with fair value measurement guidance, the Company has made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Although the Company has determined that the majority of the inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its interest rate derivatives and risk participation agreements may also utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. However, as of September 30, 2021 and December 31, 2020, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are properly classified as Level 2.

Mortgage Derivatives

The fair value of mortgage derivatives is determined based on current market prices for similar assets in the secondary market and, therefore, classified as Level 2 within the fair value hierarchy.

Individually Assessed Collateral Dependent Loans

In accordance with the CECL standard, expected credit losses on individually assessed loans deemed to be collateral dependent are valued based upon the lower of amortized cost or fair value of the underlying collateral less costs to sell.  The inputs used in the appraisals of the collateral are not always observable, and in such cases the loans may be classified as Level 3 within the fair value hierarchy; otherwise, they are classified as Level 2.

Other Real Estate Owned and Other Foreclosed Assets

Other Real Estate Owned ("OREO") and Other Foreclosed Assets are valued at the lower of cost or fair value of the property, less estimated costs to sell. The fair values are generally estimated based upon recent appraisal values of the property less costs to sell the property. Certain inputs used in appraisals are not always observable, and therefore OREO and Other Foreclosed Assets may be classified as Level 3 within the fair value hierarchy.

Goodwill and Other Intangible Assets

Goodwill and other intangible assets are subject to impairment testing. The Company conducts an annual impairment test of goodwill in the third quarter of each year, or more frequently if necessary. Other intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. To estimate the fair value of goodwill and, if necessary, other intangible assets, the Company utilizes both a comparable analysis of relevant price multiples in recent market transactions and a discounted cash flow analysis. Both valuation models require a significant degree of management judgment. In the event the fair value as determined by the valuation model is less than the carrying value, the intangibles may be impaired. If the impairment testing resulted in impairment, the Company would classify the impaired goodwill and other intangible assets subjected to nonrecurring fair value adjustments as Level 3.

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Assets and liabilities measured at fair value on a recurring and nonrecurring basis were as follows as of the dates indicated:

			Fair Value Measurements at Reporting Date Using
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	September 30, 2021
	(Dollars in thousands)
Recurring fair value measurements
Assets
Trading securities	$	3,504	$	3,504	$	—	$	—
Equity securities	22,794		22,794		—		—
Securities available for sale
U.S. government agency securities	217,345		—		217,345		—
U.S. treasury securities	770,002		—		770,002		—
Agency mortgage-backed securities	297,219		—		297,219		—
Agency collateralized mortgage obligations	86,487		—		86,487		—
State, county, and municipal securities	288		—		288		—
Single issuer trust preferred securities issued by banks and insurers	491		—		491		—
Pooled trust preferred securities issued by banks and insurers	1,010		—		1,010		—
Small business administration pooled securities	54,368		—		54,368		—
Loans held for sale	33,553		—		33,553		—
Derivative instruments	116,358		—		116,358		—
Liabilities
Derivative instruments	83,150		—		83,150		—
Total recurring fair value measurements	$	1,520,269	$	26,298	$	1,493,971	$	—
Nonrecurring fair value measurements
Assets
Individually assessed collateral dependent loans (1)	$	34,799	$	—	$	—	$	34,799
Total nonrecurring fair value measurements	$	34,799	$	—	$	—	$	34,799

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			Fair Value Measurements at Reporting Date Using
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	December 31, 2020
	(Dollars in thousands)
Recurring fair value measurements
Assets
Trading securities	$	2,838	$	2,838	$	—	$	—
Equity securities	22,107		22,107		—		—
Securities available for sale
U.S. government agency securities	24,116		—		24,116		—
Agency mortgage-backed securities	233,629		—		233,629		—
Agency collateralized mortgage obligations	91,683		—		91,683		—
State, county, and municipal securities	807		—		807		—
Single issuer trust preferred securities issued by banks and insurers	488		—		488		—
Pooled trust preferred securities issued by banks and insurers	1,056		—		1,056		—
Small business administration pooled securities	61,081		—		61,081		—
Loans held for sale	58,104		—		58,104		—
Derivative instruments	187,399		—		187,399		—
Liabilities
Derivative instruments	134,064		—		134,064		—
Total recurring fair value measurements	$	549,244	$	24,945	$	524,299	$	—
Nonrecurring fair value measurements:
Assets
Individually assessed collateral dependent loans (1)	$	31,510	$	—	$	—	$	31,510
Total nonrecurring fair value measurements	$	31,510	$	—	$	—	$	31,510

(1) The fair value of individually assessed collateral dependent loans is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of these possible adjustments may vary.

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The estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below as of the dates indicated:

					Fair Value Measurements at Reporting Date Using
	Carrying Value		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	September 30, 2021
	(Dollars in thousands)
Financial assets
Securities held to maturity (a)
U.S. government agency securities	$	33,422	$	33,295	$	—	$	33,295	$	—
U.S. treasury securities	$	3,007	$	3,024	$	—	$	3,024	$	—
Agency mortgage-backed securities	352,483		360,613		—		360,613		—
Agency collateralized mortgage obligations	451,151		452,038		—		452,038		—
Single issuer trust preferred securities issued by banks	1,500		1,508		—		1,508		—
Small business administration pooled securities	23,686		24,828		—		24,828		—
Loans, net of allowance for credit losses (b)	8,680,968		8,663,615		—		—		8,663,615
Federal Home Loan Bank stock (c)	8,666		8,666		—		8,666		—
Cash surrender value of life insurance policies (d)	244,573		244,573		—		244,573		—
Financial liabilities
Deposit liabilities, other than time deposits (e)	$	11,474,578	$	11,474,578	$	—	$	11,474,578	$	—
Time certificates of deposits (f)	785,562		786,514		—		786,514		—
Federal Home Loan Bank borrowings (f)	25,675		25,679		—		25,679		—
Long-term borrowings (f)	18,750		18,571		—		18,571		—
Junior subordinated debentures (g)	62,853		68,098		—		68,098		—
Subordinated debentures (f)	49,767		46,403		—		—		46,403

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					Fair Value Measurements at Reporting Date Using
	Carrying Value		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	December 31, 2020
	(Dollars in thousands)
Financial assets
Securities held to maturity (a)
U.S. treasury securities	$	4,017	$	4,077	$	—	$	4,077	$	—
Agency mortgage-backed securities	356,085		374,121		—		374,121		—
Agency collateralized mortgage obligations	335,993		344,119		—		344,119		—
Single issuer trust preferred securities issued by banks	1,500		1,498		—		1,498		—
Small business administration pooled securities	26,917		28,362		—		28,362		—
Loans, net of allowance for credit losses (b)	9,247,964		9,253,381		—		—		9,253,381
Federal Home Loan Bank stock (c)	10,250		10,250		—		10,250		—
Cash surrender value of life insurance policies (d)	200,525		200,525		—		200,525		—
Financial liabilities
Deposit liabilities, other than time deposits (e)	$	10,042,541	$	10,042,541	$	—	$	10,042,541	$	—
Time certificates of deposits (f)	950,629		955,598		—		955,598		—
Federal Home Loan Bank borrowings (f)	35,740		35,885		—		35,885		—
Long-term borrowings (f)	32,773		32,033		—		32,033		—
Junior subordinated debentures (g)	62,851		70,238		—		70,238		—
Subordinated debentures (f)	49,696		46,486		—		—		46,486

(a)The fair values presented are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments and/or discounted cash flow analysis.

(b)Fair value of loans is measured using the exit price valuation method, determined primarily by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities or cash flows, while incorporating liquidity and credit assumptions. Additionally, this amount excludes individually assessed collateral dependent loans, which are deemed to be marked to fair value on a nonrecurring basis.

(c)Federal Home Loan Bank stock has no quoted market value and is carried at cost; therefore the carrying amount approximates fair value.

(d)Cash surrender value of life insurance policies is recorded at its cash surrender value (or the amount that can be realized upon surrender of the policy), therefore, carrying amount approximates fair value.

(e)Fair value of demand deposits, savings and interest checking accounts and money market deposits is the amount payable on demand at the reporting date.

(f)Fair value was determined by discounting anticipated future cash payments using rates currently available for instruments with similar remaining maturities.

(g)Fair value was determined based upon market prices of securities with similar terms and maturities.

This summary excludes certain financial assets and liabilities for which the carrying value approximates fair value. For financial assets, these may include cash and due from banks, federal funds sold and short-term investments. For financial liabilities, these may include federal funds purchased. These instruments would all be considered to be classified as Level 1 within the fair value hierarchy. Also excluded from the summary are financial instruments measured at fair value on a recurring and nonrecurring basis, as previously described.

The Company considers its current use of financial instruments to be the highest and best use of the instruments.

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NOTE 8 - REVENUE RECOGNITION

A portion of the Company's noninterest income is derived from contracts with customers, and as such, the revenue recognized depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company considers the terms of the contract and all relevant facts and circumstances when applying this guidance. To ensure its alignment with this core principle, the Company measures revenue and the timing of recognition by applying the following five steps:

1.Identify the contract(s) with customers

2.Identify the performance obligations

3.Determine the transaction price

4.Allocate the transaction price to the performance obligations

5.Recognize revenue when (or as) the entity satisfies a performance obligation

The Company has disaggregated its revenue from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The following table presents the revenue streams that the Company has disaggregated as of the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30 2021		September 30 2020		September 30 2021		September 30 2020
	(Dollars in thousands)
Deposit account fees (inclusive of cash management fees)	$	4,298	$	3,428	$	11,704	$	11,227
Interchange fees	2,223		2,025		6,267		10,665
ATM fees	817		708		2,177		1,872
Investment management - wealth management and advisory services	8,147		6,997		23,576		20,113
Investment management - retail investments and insurance revenue	1,027		574		2,774		1,583
Merchant processing income	365		330		1,024		1,000
Credit card income	334		216		883		550
Other noninterest income	1,362		905		3,732		2,651
Total noninterest income in-scope of ASC 606	18,573		15,183		52,137		49,661
Total noninterest income out-of-scope of ASC 606	7,884		14,164		24,533		34,311
Total noninterest income	$	26,457	$	29,347	$	76,670	$	83,972

In each of the revenue streams identified above, there were no significant judgments made in determining or allocating the transaction price, as the consideration and service requirements are generally explicitly identified in the associated contracts. Additional information related to each of the revenue streams is further noted below.

Deposit Account Fees

The Company offers various deposit account products to its customers governed by specific deposit agreements applicable to either personal customers or business customers. These agreements identify the general conditions and obligations of both parties, and include standard information regarding deposit account related fees.

Deposit account services include providing access to deposit accounts as well as access to the various deposit transactional services of the Company. These transactional services are primarily those that are identified in the standard fee schedule, and include, but are not limited to, services such as overdraft protection, wire transfer, and check collection. Revenue is recognized in conjunction with the various services being provided. For example, the Company may assess monthly fixed service fees associated with the customer having access to a deposit account, which can vary depending on the account type and daily account balance. In addition, the Company may also assess separate fixed fees associated with and at the time specific transactions are entered into by the customer. As such, the Company considers its performance obligations to be met concurrently with providing the account access or completing the requested deposit transaction.

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Cash Management

Cash management services are a subset of the deposit account fees revenue stream. These services primarily include ACH transaction processing, positive pay and remote deposit services. These services are also governed by separate agreements entered into with the customer. The fee arrangement for these services is structured to assess fees under one of two scenarios, either a per transaction fee arrangement or an earnings credit analysis arrangement. Under the per transaction fee arrangement, fixed fees are assessed concurrently with customers executing the transactions, and as such, the Company considers its performance obligations to be met concurrently with completing the requested transaction. Under the earnings credit analysis arrangement, the Company provides a monthly earnings credit to the customer that is negotiated and determined based on various factors. The credit is then available to absorb the per transaction fees that are assessed on the customer's deposit account activity for the month. Any amount of the transactional fees in excess of the earnings credit is recognized as revenue in that month.

Interchange Fees

The Company earns interchange revenue from its issuance of credit and debit cards granted through its membership in various card payment networks. The Company provides credit cards and debit cards to its customers which are authorized and settled through these payment networks, and in exchange, the Company earns revenue as determined by each payment network's interchange program. The revenue is recognized concurrently with the settlement of card transactions within each network.

ATM Fees

The Company deploys automated teller machines (ATMs) as part of its overall branch network. Certain transactions performed at the ATMs require customers to acknowledge and pay a fee for the requested service. Certain ATM fees are disclosed in the deposit account agreement fee schedules, whereas those assessed to non-Rockland Trust deposit holders are solely determined during the transaction at the machine.

The ATM fee is a fixed dollar per transaction amount, and as such, is recognized concurrently with the overall daily processing and settlement of the ATM activity.

Investment Management - Wealth Management and Advisory Services

The Company offers investment management and trust services to individuals, institutions, small businesses and charitable institutions. Each investment management product is governed by its own contract along with a separate identifiable fee schedule unique to that product. The Company also offers additional services, such as estate settlement, financial planning, tax services and other special services quoted at the client's request.

The asset management and/or custody fees are based upon a percentage of the monthly valuation of the principal assets in the customer's account, whereas fees for additional or special services are fixed in nature and are charged as services are rendered. As the fees are dependent on assets under management, which are susceptible to market factors outside of the Company's control, this variable consideration is constrained and therefore no revenue is estimated at contract initiation. As such, all revenue is recognized in correlation to the monthly management fee determinations or as transactional services are provided. Due to the fact that payments are primarily made subsequent to the valuation period, the Company records a receivable for revenue earned but not received. The following table provides the amount of investment management revenue earned but not received as of the dates indicated:

	September 30, 2021		December 31, 2020
	(Dollars in thousands)
Receivables, included in other assets	$	5,292	$	4,636

Investment Management - Retail Investments and Insurance Revenue

The Company offers the sale of mutual fund shares, unit investment trust shares, general securities, fixed and variable annuities and life insurance products through registered representatives who are both employed by the Company and licensed and contracted with various broker general agents to offer these products to the Company’s customer base. As such, the Company performs these services as an agent and earns a fixed commission on the sales of these products and services. To a lesser degree, production bonus commissions can also be earned based upon the Company meeting certain volume thresholds.

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In general, the Company recognizes commission revenue at the point of sale, and for certain insurance products, may also earn and recognize annual residual commissions commensurate with annual premiums being paid.

Merchant Processing Income

The Company refers customers to third party merchant processing partners in exchange for commission and fee income. The income earned is comprised of multiple components, including a fixed referral fee per each referred customer, a rebate amount determined primarily as a percentage of net revenue earned by the third party from services provided to each referred customer, and overall production bonus commissions if certain new account production thresholds are met. Merchant processing income is recognized in conjunction with either completing the referral to earn the fixed fee amount or as the merchant activity is processed to derive the Company's rebate and/or production bonus amounts.

Credit Card Income

The Company provides consumer and business credit card solutions to its customers by soliciting new accounts on behalf of a third party credit card provider in exchange for a fee. The income earned is comprised of new account incentive payments as well as a percentage of interchange income earned by the third party provider offering the consumer and business purpose revolving credit accounts. The credit card income is recognized in conjunction with the establishment of each new credit card member or as the interchange is earned by the third party in connection with net purchase transactions made by the credit card member.

Other Noninterest Income

The Company earns various types of other noninterest income that fall within the scope of the new revenue recognition rules, and have been aggregated into one general revenue stream in the table noted above. This amount includes, but is not limited to, the following types of revenue with customers:

Safe Deposit Rent

    The Company rents out the use of safe deposit boxes to its customers, which can be accessed when the bank is open for business. The safe deposit box rental fee is paid upfront and is recognized as revenue ratably over the annual term of the contract.

1031 Exchange Fee Revenue

    The Company provides like-kind exchange services pursuant to Section 1031 of the Internal Revenue Code. Fee income is recognized in conjunction with completing the exchange transactions.

Foreign Currency

    The Company earns fee income associated with various transactions related to foreign currency product offerings, including foreign currency bank notes and drafts and foreign currency wires. The majority of this income is derived from commissions earned related to customers executing the above mentioned foreign currency transactions through arrangements with third party correspondents.

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NOTE 9 - OTHER COMPREHENSIVE INCOME (LOSS)

The following tables present a reconciliation of the changes in the components of other comprehensive income (loss) for the periods indicated, including the amount of income tax (expense) benefit allocated to each component of other comprehensive income (loss):

	Three Months Ended September 30, 2021						Nine Months Ended September 30, 2021
	Pre Tax Amount		Tax (Expense) Benefit		After Tax Amount		Pre Tax Amount		Tax (Expense) Benefit		After Tax Amount
	(Dollars in thousands)
Change in fair value of securities available for sale	$	(10,337)	$	2,440	$	(7,897)	$	(15,589)	$	3,711	$	(11,878)
Less: net security losses reclassified into other noninterest expense	—		—		—		—		—		—
Net change in fair value of securities available for sale	(10,337)		2,440		(7,897)		(15,589)		3,711		(11,878)
Change in fair value of cash flow hedges	84		(23)		61		(2,214)		624		(1,590)
Less: net cash flow hedge gains reclassified into interest income or interest expense	4,791		(1,347)		3,444		13,869		(3,900)		9,969
Net change in fair value of cash flow hedges	(4,707)		1,324		(3,383)		(16,083)		4,524		(11,559)
Net unamortized gain related to defined benefit pension and other postretirement adjustments arising during the period	—		—		—		653		(184)		469
Amortization of net actuarial losses	346		(97)		249		1,037		(291)		746
Amortization of net prior service costs	44		(13)		31		131		(37)		94
Net change in other comprehensive income for defined benefit postretirement plans (1)	390		(110)		280		1,821		(512)		1,309
Total other comprehensive loss	$	(14,654)	$	3,654	$	(11,000)	$	(29,851)	$	7,723	$	(22,128)

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	Three Months Ended September 30, 2020						Nine Months Ended September 30, 2020
	Pre Tax Amount		Tax (Expense) Benefit		After Tax Amount		Pre Tax Amount		Tax (Expense) Benefit		After Tax Amount
	(Dollars in thousands)
Change in fair value of securities available for sale	$	(857)	$	148	$	(709)	$	13,598	$	(3,265)	$	10,333
Less: net security losses reclassified into other noninterest expense	—		—		—		—		—		—
Net change in fair value of securities available for sale	(857)		148		(709)		13,598		(3,265)		10,333
Change in fair value of cash flow hedges	(143)		41		(102)		37,674		(10,597)		27,077
Less: net cash flow hedge gains reclassified into interest income or interest expense	4,339		(1,220)		3,119		9,901		(2,784)		7,117
Less: loss on termination of hedge reclassified into noninterest expense	(684)		192		(492)		(684)		192		(492)
Net change in fair value of cash flow hedges	(3,798)		1,069		(2,729)		28,457		(8,005)		20,452
Net unamortized loss related to defined benefit pension and other postretirement adjustments arising during the period	(2)		1		(1)		(1,392)		392		(1,000)
Amortization of net actuarial losses	245		(69)		176		736		(207)		529
Amortization of net prior service costs	69		(19)		50		207		(58)		149
Net change in other comprehensive income for defined benefit postretirement plans (1)	312		(87)		225		(449)		127		(322)
Total other comprehensive income (loss)	$	(4,343)	$	1,130	$	(3,213)	$	41,606	$	(11,143)	$	30,463

(1)The amortization of prior service costs is included in the computation of net periodic pension cost as disclosed in Note 15 "Employee Benefit Plans" within the Notes to the Consolidated Financial Statements included in Item 8 of the Company's 2020 Form 10-K.

Information on the Company’s accumulated other comprehensive income (loss), net of tax, is comprised of the following components as of the dates indicated:

	Unrealized Gain (Loss) on Securities		Unrealized Gain (Loss) on Cash Flow Hedge		Defined Benefit Postretirement Plans		Accumulated Other Comprehensive Income (Loss)
	(Dollars in thousands)
	2021
Beginning balance: January 1, 2021	$	13,255	$	33,276	$	(5,836)	$	40,695
Net change in other comprehensive income (loss)	(11,878)		(11,559)		1,309		(22,128)
Ending balance: September 30, 2021	$	1,377	$	21,717	$	(4,527)	$	18,567
	2020
Beginning balance: January 1, 2020	$	4,398	$	16,479	$	(2,708)	$	18,169
Net change in other comprehensive income (loss)	10,333		20,452		(322)		30,463
Ending balance: September 30, 2020	$	14,731	$	36,931	$	(3,030)	$	48,632

NOTE 10 - COMMITMENTS AND CONTINGENCIES

Financial Instruments with Off-Balance Sheet Risk

    In the normal course of business, the Company enters into various transactions to meet the financing needs of its customers, which, in accordance with GAAP, are not included in its consolidated balance sheets. These transactions include commitments to extend credit and standby letters of credit, and loan exposures with recourse, which involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Company minimizes its exposure to loss under these commitments by subjecting them to credit approval and monitoring procedures.

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    The Company enters into contractual commitments to extend credit, normally with fixed expiration dates or termination clauses, at specified rates and for specific purposes. Substantially all of these commitments to extend credit are contingent upon customers maintaining specific credit standards at the time of loan funding.

The Company has certain loan exposures for which there is recourse. These loan relationships could require the Company to repurchase or cover certain losses per agreements for certain loans that are either sold or referred to third parties.

    Standby letters of credit are written conditional commitments issued to guarantee the performance of a customer to a third party. In the event the customer does not perform in accordance with the terms of the agreement with the third party, the Company would be required to fund the commitment. The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount of the commitment. If the commitment were funded, the Company would be entitled to seek recovery from the customer. The Company’s policies generally require that standby letter of credit arrangements contain security and debt covenants similar to those contained in loan agreements.

    The fees collected in connection with the issuance of standby letters of credit are representative of the fair value of the Company's obligation undertaken in issuing the guarantee. In accordance with applicable accounting standards related to guarantees, fees collected in connection with the issuance of standby letters of credit are deferred. The fees are then recognized in income proportionately over the life of the standby letter of credit agreement. The deferred standby letter of credit fees represent the fair value of the Company's potential obligations under the standby letter of credit guarantees.

    The following table summarizes the above financial instruments at the dates indicated:

	September 30, 2021		December 31, 2020
	(Dollars in thousands)
Commitments to extend credit	$	3,591,456	$	3,301,692
Standby letters of credit	20,081		20,686
Deferred standby letter of credit fees	146		164
Loan exposures with recourse	208,833		303,265

Lease Commitments

The Company leases office space, space for ATM locations, and certain branch locations under noncancellable operating leases. Several of these leases contain renewal options to extend lease terms for a period of 3 to 10 years. During the fourth quarter of 2020, the Company recognized $4.8 million in lease termination costs associated with two branch closure decisions. These termination fees were paid by the Company during the second quarter of 2021.

There has been no significant change in the future minimum lease payments payable by the Company since December 31, 2020. See the Company's 2020 Form 10-K for information regarding leases and other commitments.

Other Contingencies

At September 30, 2021, the Bank was involved in pending lawsuits that arose in the ordinary course of business. Management has reviewed these pending lawsuits with legal counsel and has taken into consideration the view of counsel as to their outcome. In the opinion of management, the final disposition of pending lawsuits is not expected to have a material adverse effect on the Company’s financial position or results of operations.

Historically, the Bank was required to maintain certain reserve requirements of vault cash and/or deposits with the Federal Reserve Bank of Boston, however the reserve requirement was reduced to zero by the Federal Reserve during the first quarter of 2020 in response to the COVID-19 pandemic, and as such, there was no reserve requirement at September 30, 2021 or at December 31, 2020.

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NOTE 11 - LOW INCOME HOUSING PROJECT INVESTMENTS

The Company has invested in low income housing projects that generate Low Income Housing Tax Credits (“LIHTC”) which provide the Company with tax credits and operating loss tax benefits over a period of approximately 15 years. None of the original investment is expected to be repaid.

The following table presents certain information related to the Company's investments in low income housing projects as of the dates indicated:

	September 30 2021			December 31 2020
	(Dollars in thousands)
Original investment value	$	162,879		$	128,752
Current recorded investment	121,992			97,435
Unfunded liability obligation	74,157			49,586
Tax credits and benefits	14,251		(1)	9,404
Discrete tax adjustment	1,572		(2)	n/a
Adjusted tax credits and benefits	15,823			9,404
Amortization of investments	12,437		(1)	7,552
Net income tax benefit	3,386		(1)	1,852

(1)Amounts shown represent the estimated full year impact for the year ended December 31, 2021.

(2)Discrete adjustment recognized for difference in actual benefits as reported on Schedule K-1 versus estimated benefits for the year ended December 31, 2020.

NOTE 12 - SUBSEQUENT EVENTS

On October 29, 2021, the Company sold one large commercial and industrial loan relationship, the aggregate balance of which totaled $15.8 million as of September 30, 2021 and was included within non-performing assets. The Company expects to recognize a gain of approximately $2.5 million based on proceeds from the sale.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with the consolidated financial statements, notes and tables included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, filed with the Securities and Exchange Commission (the "2020 Form 10-K").

Cautionary Statement Regarding Forward-Looking Statements

    This Quarterly Report on Form 10-Q (this "Report"), in Management's Discussion and Analysis of Financial Condition and Results of Operations and elsewhere, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about new and existing programs and products, acquisitions, relationships, opportunities, taxation, technology, market conditions and economic expectations. These statements may be identified by forward-looking terminology such as “should,” “could,” “will,” “may,” “expect,” “believe,” “forecast,” “view,” “opportunity,” “allow,” “continues,” “reflects,” “typically,” “usually,” “anticipate,” “intend,” or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties and our actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, in addition to those risk factors listed under the “Risk Factors” section of the 2020 Form 10-K and the Quarterly Reports on Form 10-Q for the periods ended March 31, 2021 and June 30, 2021 include, but are not limited to:

•further weakening in the United States economy in general and the regional and local economies within the New England region and the Company’s market area, including future weakening caused by the COVID-19 pandemic and variables such as global supply chain disruptions, labor shortages and inflation;

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•the length and extent of economic contraction as a result of the COVID-19 pandemic and variables such as global supply chain disruptions, labor shortages and stoppages and inflation (which could adversely impact us or our customers or suppliers);

•unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather, pandemics or other external events;

•adverse changes or volatility in the local real estate market;

•adverse changes in asset quality and any unanticipated credit deterioration in our loan portfolio including those related to one or more large commercial relationships;

•failure to consummate or a delay in consummating the acquisition of Meridian Bancorp, Inc. ("Meridian"), which is subject to standard closing conditions, including the receipt of regulatory approvals;

•acquisitions, including the acquisition of Meridian, may not produce results at levels or within time frames originally anticipated and may result in unforeseen integration issues or impairment of goodwill and/or other intangibles;

•additional regulatory oversight and related compliance costs, including the additional costs associated with the Company's increase in assets to over $10 billion;

•changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System;

•higher than expected tax expense, resulting from failure to comply with general tax laws and changes in tax laws;

•changes in market interest rates for interest earning assets and/or interest bearing liabilities and changes related to the phase-out of LIBOR;

•increased competition in the Company’s market areas;

•adverse weather, changes in climate, natural disasters, the emergence of widespread health emergencies or pandemics, including the magnitude and duration of the COVID-19 pandemic, other public health crises or man-made events could negatively affect our local economies or disrupt our operations, which would have an adverse effect on our business or results of operations;

•a deterioration in the conditions of the securities markets;

•a deterioration of the credit rating for U.S. long-term sovereign debt;

•inability to adapt to changes in information technology, including changes to industry accepted delivery models driven by a migration to the internet as a means of service delivery;

•electronic fraudulent activity within the financial services industry, especially in the commercial banking sector;

•adverse changes in consumer spending and savings habits;

•the inability to retain customers and employees, including those of previous and pending mergers;

•the effect of laws and regulations regarding the financial services industry;

•changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) generally applicable to the Company’s business;

•the Company's potential judgments, claims, damages, penalties, fines and reputational damage resulting from pending or future litigation and regulatory and government actions, including as a result of our participation in and execution of government programs related to the COVID-19 pandemic;

•changes in accounting policies, practices and standards, as may be adopted by the regulatory agencies as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters including, but not limited to, changes to how the Company accounts for credit losses;

•cyber security attacks or intrusions that could adversely impact our businesses; and

•other unexpected material adverse changes in our operations or earnings.

Further, the foregoing factors may be exacerbated by the ultimate impact of the COVID-19 pandemic, which is unknown at this time, particularly given the threats posed by the rise and spread of variants of the virus that causes COVID-19. Statements about the COVID-19 pandemic and its potential impact on our business, financial condition, liquidity and results of operations may constitute forward-looking statements and are subject to the risk that actual results may differ, possibly materially, from what is reflected in such statements due to factors and future developments that are uncertain, unpredictable and, in many cases, beyond our control, including the scope, duration and extent of the pandemic and any resurgences, vaccination rates, actions taken by governmental authorities in response to the pandemic and the direct and indirect impact on the Company’s employees, customers, business and third-parties with which the Company conducts business.

    Except as required by law, the Company disclaims any intent or obligation to update publicly any such forward-looking statements, whether in response to new information, future events or otherwise. Any public statements or disclosures by the Company following this Report which modify or impact any of the forward-looking statements contained in this Report will be deemed to modify or supersede such statements in this Report.

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Selected Quarterly Financial Data

The selected consolidated financial and other data of the Company set forth below does not purport to be complete and should be read in conjunction with, and is qualified in its entirety by, the more detailed information, including the Consolidated Financial Statements and related notes, appearing elsewhere in this Report.

				Three Months Ended
	September 30 2021			June 30 2021			March 31 2021			December 31 2020			September 30 2020
	(Dollars in thousands, except per share data)
Financial condition data
Securities	$	2,318,757		$	1,682,751		$	1,431,430		$	1,162,317		$	1,106,782
Loans	8,808,013			8,938,988			9,246,691			9,392,866			9,405,193
Allowance for credit losses	(92,246)			(102,357)			(107,549)			(113,392)			(115,625)
Goodwill and other intangible assets	525,261			526,576			527,894			529,313			530,749
Total assets	14,533,311			14,194,207			13,773,914			13,204,301			13,173,665
Total deposits	12,260,140			11,986,971			11,593,524			10,993,170			10,851,308
Total borrowings	157,045			171,713			176,387			181,060			295,734
Stockholders’ equity	1,755,954			1,741,622			1,715,371			1,702,685			1,689,724
Nonperforming loans	45,810			47,818			59,201			66,861			98,025
Nonperforming assets	45,810			47,818			59,201			66,861			98,025
Income statement
Interest income	$	93,016		$	96,702		$	99,637		$	96,805		$	97,919
Interest expense	2,925			3,348			4,053			5,362			7,036
Net interest income	90,091			93,354			95,584			91,443			90,883
Provision for credit losses	(10,000)			(5,000)			(2,500)			—			7,500
Noninterest income	26,457			24,967			25,246			27,468			29,347
Noninterest expenses	72,419			73,302			69,682			73,727			66,658
Net income	40,007			37,572			41,711			34,641			34,873
Per share data
Net income—basic	$	1.21		$	1.14		$	1.26		$	1.05		$	1.06
Net income—diluted	1.21			1.14			1.26			1.05			1.06
Cash dividends declared	0.48			0.48			0.48			0.46			0.46
Book value per share	53.14			52.72			51.94			51.65			51.27
Tangible book value per share (1)	37.24			36.78			35.96			35.59			35.17
Performance ratios
Return on average assets	1.11		%	1.08		%	1.26		%	1.04		%	1.07		%
Return on average common equity	9.04		%	8.70		%	9.87		%	8.10		%	8.21		%
Net interest margin (on a fully tax equivalent basis)	2.78		%	2.99		%	3.25		%	3.10		%	3.13		%
Dividend payout ratio	39.64		%	42.19		%	36.35		%	43.76		%	43.45		%
Asset Quality Ratios
Nonperforming loans as a percent of gross loans	0.52		%	0.53		%	0.64		%	0.71		%	1.04		%
Nonperforming assets as a percent of total assets	0.32		%	0.34		%	0.43		%	0.51		%	0.74		%
Allowance for credit losses as a percent of total loans	1.05		%	1.15		%	1.16		%	1.21		%	1.23		%
Allowance for credit losses as a percent of nonperforming loans	201.37		%	214.06		%	181.67		%	169.59		%	117.95		%
Capital ratios

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Equity to assets	12.08	%	12.27	%	12.45	%	12.89	%	12.83	%
Tangible equity to tangible assets (1)	8.79	%	8.89	%	8.96	%	9.26	%	9.17	%
Tier 1 leverage capital ratio	9.36	%	9.41	%	9.63	%	9.56	%	9.52	%
Common equity tier 1 capital ratio	13.53	%	13.31	%	13.16	%	12.67	%	12.41	%
Tier 1 risk-based capital ratio	14.21	%	13.98	%	13.85	%	13.34	%	13.08	%
Total risk-based capital ratio	15.78	%	15.67	%	15.61	%	15.13	%	14.87	%

(1)     Represents a non-GAAP measure. For reconciliation to GAAP book value per share, see Item 2 "Management's Discussion and Analysis of Financial Condition and Results of Operations - Executive Level Overview - Non-GAAP Measures" below.

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Executive Level Overview

    Management evaluates the Company's operating results and financial condition using measures that include net income, earnings per share, return on assets and equity, return on tangible common equity, net interest margin, tangible book value per share, asset quality indicators, and many others. These metrics are used by management to make key decisions regarding the Company's balance sheet, liquidity, interest rate sensitivity, and capital resources and assist with identifying opportunities for improving the Company's financial position or operating results. The Company is focused on organic growth, but will also consider acquisition opportunities that can provide a satisfactory financial return.

On April 22, 2021 the Company announced the signing of a definitive merger agreement under which the Company will acquire Meridian, with the Company as the surviving entity, and East Boston Savings Bank will merge with and into Rockland Trust (the “Merger Agreement”). Under the Merger Agreement, each share of Meridian common stock will be exchanged for 0.2750 shares of the Company’s common stock. The transaction is intended to qualify as a tax-free reorganization for federal income tax purposes and to provide Meridian stockholders with a tax-free exchange for the Company common stock consideration they will receive in the merger. The Company anticipates issuing approximately 14.2 million shares of its common stock in the merger. Based upon the closing price of $79.57 per share of the Company’s common stock on April 21, 2021, the transaction is valued at approximately $1.15 billion. The closing of the Meridian acquisition, which is expected to occur during the fourth quarter of 2021, was approved by the Company's shareholders and by Meridian's stockholders on August 5, 2021, and remains subject to required regulatory approvals and satisfaction of other customary closing conditions set forth in the Merger Agreement.

    During the ongoing COVID-19 pandemic, the Company has been and remains committed to supporting and working with its customers as they navigate these unprecedented times. The Company has abided by government mandates requiring a temporary moratorium on foreclosures and has offered a variety of relief measures to its customers consistent with prudent banking principles and regulatory guidance. These relief measures have included temporary deferrals of loan payments, waiving certain fees and permitting customers easier access to their deposits. The Company’s charitable foundations have engaged and will continue to engage in outreach to local communities during this difficult time and have committed funds to be made available to key nonprofits with urgent needs, such as local food banks. The Company concluded its participation in the government-sponsored Paycheck Protection Program ("PPP"), designed to help deploy stimulus funds in the form of loans to businesses within the community, after the second round PPP closed to new applicants. During the first half of 2021, the Company funded an additional $370.0 million of PPP loans in the second round of the program.

While the full macroeconomic impacts of the COVID-19 pandemic have yet to be fully determined, overall conditions have begun to improve as a result of vaccine availability, leading to the re-opening of businesses and loosening of certain travel restrictions and social distancing measures. Despite the observed improvements, the future outlook of the COVID-19 pandemic remains highly dependent on the speed of vaccine administration, the efficacy of the vaccines and the possibility for resurgences of COVID-19 or other variants of the virus, including the Delta variant. As a result, the Company is not able to provide any assurances that the Company’s earnings, asset quality, regulatory capital ratios and economic condition will not be materially adversely impacted on a short term or long term basis.

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Interest-Earning Assets

    The results depicted in the following table reflect the trend of the Company's interest-earning assets over the past five quarters. Management’s asset strategy typically emphasizes loan growth, however, the mix of interest earning assets has experienced volatility over the last five quarters due to the unique operating environment. With significant growth in deposits over this time period, along with over $400 million of PPP loans being forgiven and repaid during the first three quarters of 2021, securities and interest earning cash balances have increased significantly, while loan growth has been challenging due to elevated payoffs and lower line utilization. However, during the third quarter of 2021, the Company continued to execute its strategy to deploy excess cash balances into investment securities, resulting in net growth of the securities portfolio of $636.0 million, or 37.8%, from the prior quarter.

    Management strives to be disciplined about loan pricing and considers interest rate sensitivity when generating loan assets. In addition, management takes a disciplined approach to credit underwriting, seeking to avoid undue credit risk and loan losses.

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Funding and Net Interest Margin

    The Company's overall sources of funding reflect strong business and retail deposit growth with a management emphasis on core deposit growth to fund loans. During the third quarter of 2021, the Company realized growth in deposits, which increased $273.2 million, or 2.3%, from June 30, 2021 to $12.3 billion at September 30, 2021, reflecting continued robust new account activity in both consumer and business products, as well as increases on existing balances. Core deposits remained at 92.0% of total deposits at September 30, 2021, as higher-cost time deposits continued to run-off. The following chart shows the sources of funding and the percentage of core deposits to total deposits for the trailing five quarters:

    The 2021 third quarter net interest margin continued to be heavily impacted by the increased excess liquidity position, decreasing by 21 basis points from the prior quarter to 2.78%. Net interest income for the third quarter decreased to $90.1 million compared to $93.4 million for the prior quarter, driven by a $5.0 million reduction in PPP fee income as compared to the prior quarter, along with increases in balances of lower yielding, short term assets.

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    The following table shows the net interest margin and cost of deposits trends for the trailing five quarters:

Noninterest Income

    Noninterest income is primarily comprised of deposit account fees, interchange and ATM fees, investment management fees and mortgage banking income. The increases in deposit fees, interchange and ATM fees for the three months ended September 30, 2021 were primarily volume driven and reflected a rise in customer spending. Investment management income also increased for the third quarter, primarily attributable to increased insurance commissions. The following chart shows the components of noninterest income over the past five quarters:

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Expense Control

    Management seeks to take a balanced approach to noninterest expense control by monitoring ongoing operating expenses while making needed capital expenditures and prudently investing in growth initiatives. The Company’s primary expenses arise from Rockland Trust’s employee salaries and benefits, as well as expenses associated with buildings and equipment. Noninterest expense decreased slightly during the third quarter of 2021, however when combined with lower total revenues, the efficiency ratio remained elevated for the three months ended September 30, 2021. The following chart depicts the Company's efficiency ratio on a GAAP basis (calculated by dividing noninterest expense by the sum of noninterest income and net interest income), as well as the Company's efficiency ratio on a non-GAAP operating basis, if applicable (calculated by dividing noninterest expense, excluding certain noncore items, by the sum of noninterest income, excluding certain noncore items, and net interest income), over the past five quarters:

*See "Non-GAAP Measures" below for a reconciliation to GAAP financial measures.

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Capital

    The Company's approach with respect to revenue and expense is designed to promote long-term earnings growth, which in turn contributes to capital growth. Strong earnings retention has contributed to capital growth, both on an absolute level and per share basis. The following chart shows the Company's book value and tangible book value per share over the past five quarters (see "Non-GAAP Measures" below for a reconciliation to GAAP financial measures):

*See "Non-GAAP Measures" below for a reconciliation to GAAP financial measures.

    The Company declared quarterly cash dividends of $0.48 per share for each of the first three quarters of 2021, representing an increase of 4.3% from the 2020 quarterly dividend rate of $0.46 per share.

Third Quarter 2021 Results

    Net income for the third quarter of 2021 was $40.0 million, or $1.21 on a diluted earnings per share basis, and increased 14.7% and 14.2%, respectively, as compared to $34.9 million, or $1.06 on a diluted earnings per share basis, for the prior year third quarter. Third quarter 2021 results were positively impacted by a release of provision for credit losses of $10.0 million, in contrast to the prior year period results, which included a provision for credit losses of $7.5 million reflecting management's assumptions and expectations related to the COVID-19 pandemic at that time. The third quarter of 2021 included merger and acquisition costs, while the third quarter of 2020 included a loss on the termination of a derivative contract, which the Company deems to be noncore. Excluding these noncore items, third quarter 2021 and 2020 operating net income was $41.4 million and $35.4 million, respectively. See "Non-GAAP Measures" below for a reconciliation of non-GAAP measures.

2021 Outlook

During the Company's third quarter 2021 earnings call, the Company's Chief Financial Officer provided the following key expectations regarding business activity to serve as near term guidance for the remainder of 2021:

•Loan growth is expected to mirror third quarter results, such that continued payoffs will mitigate strong anticipated closing activity, resulting in relatively flat balances. However, any increase in line utilization rates could also serve as a catalyst to stronger loan growth;

•Deposit growth is expected to be in the low single digits;

•Near term deployment of excess liquidity is expected to continue to be in the form of increased securities balances;

•Assuming an anticipated trend of improving general economic factors and no significant unexpected changes in overall asset quality, the provision for credit losses is expected to continue to track at levels below net charge-offs;

•Non-interest income is expected to decrease slightly primarily due to anticipated seasonal declines in deposit fees, reduced mortgage banking income attributable to compressed gain on sale margins and an anticipated increase in loan production retained in the portfolio, as well as reduced equity investment gains which positively impacted both second and third quarter results in 2021;

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•Non-interest expense is expected to increase slightly.

Non-GAAP Measures

    When management assesses the Company’s financial performance for purposes of making day-to-day and strategic decisions, it does so based upon the performance of its core banking business, which is primarily derived from the combination of net interest income and noninterest or fee income, reduced by operating expenses, the provision for credit losses, and the impact of income taxes and other noncore items shown in the tables that follow. There are items that impact the Company's results that management believes are unrelated to its core banking business such as merger and acquisition expenses and other items. Management, therefore, computes certain non-GAAP measures including operating net income and operating EPS, noninterest income on an operating basis, noninterest expense on an operating basis, operating return on average assets, operating return on average equity, and efficiency ratio on an operating basis, which exclude items management considers to be noncore. Management believes excluding these items facilitates greater visibility into the Company’s core banking business and underlying trends that may, to some extent, be obscured by inclusion of such items.

    Management also supplements its evaluation of financial performance with analyses of tangible book value per share (which is computed by dividing stockholders' equity less goodwill and identifiable intangible assets, or "tangible common equity", by common shares outstanding) and the tangible common equity to tangible assets ratio (which is computed by dividing tangible common equity by "tangible assets", defined as total assets less goodwill and other intangibles). The Company has included information on tangible book value per share and the tangible common equity to tangible assets ratio because management believes that investors may find it useful to have access to the same analytical tools used by management.  As a result of merger and acquisition activity, the Company has recognized goodwill and other intangible assets in conjunction with business combination accounting principles.  Excluding the impact of goodwill and other intangibles in measuring asset and capital values for the ratios provided, along with other bank standard capital ratios, provides a framework to compare the capital adequacy of the Company to other companies in the financial services industry.

    These non-GAAP measures should not be viewed as a substitute for operating results and other financial measures determined in accordance with GAAP. An item which management deems to be noncore and excludes when computing these non-GAAP measures can be of substantial importance to the Company’s results for any particular quarter or year. The Company’s non-GAAP performance measures including those non-GAAP measures referenced above, are not necessarily comparable to non-GAAP performance measures which may be presented by other companies.

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The following tables summarize adjustments for noncore items for the periods indicated below and reconcile non-GAAP measures:

	Three Months Ended September 30
	Net Income				Diluted Earnings Per Share
	2021		2020		2021		2020
	(Dollars in thousands, except per share data)
Net income available to common shareholders (GAAP)	$	40,007	$	34,873	$	1.21	$	1.06
Non-GAAP adjustments
Noninterest expense components
Add: loss on termination of derivatives	—		684		—		0.02
Add: merger and acquisition expenses	1,943		—		0.06		—
Noncore increases to income before taxes	1,943		684		0.06		0.02
Net tax benefit associated with noncore items (1)	(546)		(192)		(0.02)		(0.01)
Total tax impact	(546)		(192)		(0.02)		(0.01)
Noncore increases to net income	1,397		492		0.04		0.01
Operating net income (Non-GAAP)	$	41,404	$	35,365	$	1.25	$	1.07
	Nine Months Ended September 30
	Net Income				Diluted Earnings Per Share
	2021		2020		2021		2020
	(Dollars in thousands, except per share data)
Net income available to common shareholders (GAAP)	$	119,290	$	86,526	$	3.61	$	2.59
Non-GAAP adjustments
Noninterest expense components
Add: loss on termination of derivatives	—		684		—		0.02
Add: merger and acquisition expenses	3,674		—		0.11		—
Noncore increases to income before taxes	3,674		684		0.11		0.02
Net tax benefit associated with noncore items (1)	(1,033)		(192)		(0.03)		(0.01)
Noncore increases to net income	2,641		492		0.08		0.01
Operating net income (Non-GAAP)	$	121,931	$	87,018	$	3.69	$	2.61

(1)The net tax benefit associated with noncore items is determined by assessing whether each noncore item is included or excluded from net taxable income and applying the Company's combined marginal tax rate to only those items included in net taxable income.

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	Three Months Ended
	September 30 2021			June 30 2021			March 31 2021			December 31 2020			September 30 2020
	(Dollars in thousands)
Net interest income (GAAP)	$	90,091		$	93,354		$	95,584		$	91,443		$	90,883		(a)
Noninterest income (GAAP)	$	26,457		$	24,967		$	25,246		$	27,468		$	29,347		(b)
Noninterest expense (GAAP)	$	72,419		$	73,302		$	69,682		$	73,727		$	66,658		(c)
Less:
Merger and acquisition expense	1,943			1,731			—			—			—
Loss on termination of derivatives	—			—			—			—			684
Noninterest expense on an operating basis (Non-GAAP)	$	70,476		$	71,571		$	69,682		$	73,727		$	65,974		(d)
Total revenue (GAAP)	$	116,548		$	118,321		$	120,830		$	118,911		$	120,230		(a+b)
Ratios
Noninterest income as a % of revenue (GAAP based)	22.70		%	21.10		%	20.89		%	23.10		%	24.41		%	(b/(a+b))
Efficiency ratio (GAAP based)	62.14		%	61.95		%	57.67		%	62.00		%	55.44		%	(c/(a+b))
Efficiency ratio on an operating basis (Non-GAAP)	60.47		%	60.49		%	57.67		%	62.00		%	54.87		%	(d/(a+b))

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    The following table summarizes the calculation of the Company's tangible common equity to tangible assets ratio, tangible book value per share, and loan and allowance metrics, exclusive of PPP loan balances as of the dates indicated:

	September 30 2021			June 30 2021			March 31 2021			December 31 2020			September 30 2020
	(Dollars in thousands, except per share data)
Tangible common equity
Stockholders' equity (GAAP)	$	1,755,954		$	1,741,622		$	1,715,371		$	1,702,685		$	1,689,724		(a)
Less: Goodwill and other intangibles	525,261			526,576			527,895			529,313			530,749
Tangible common equity (Non-GAAP)	1,230,693			1,215,046			1,187,476			1,173,372			1,158,975			(b)
Tangible assets
Assets (GAAP)	14,533,311			14,194,207			13,773,914			13,204,301			13,173,665			(c)
Less: Goodwill and other intangibles	525,261			526,576			527,895			529,313			530,749
Tangible assets (Non-GAAP)	$	14,008,050		$	13,667,631		$	13,246,019		$	12,674,988		$	12,642,916		(d)
Common shares	33,043,812			33,037,859			33,024,882			32,965,692			32,955,547			(e)
Common equity to assets ratio (GAAP)	12.08		%	12.27		%	12.45		%	12.89		%	12.83		%	(a/c)
Tangible common equity to tangible assets ratio (Non-GAAP)	8.79		%	8.89		%	8.96		%	9.26		%	9.17		%	(b/d)
Book value per share (GAAP)	$	53.14		$	52.72		$	51.94		$	51.65		$	51.27		(a/e)
Tangible book value per share (Non-GAAP)	$	37.24		$	36.78		$	35.96		$	35.59		$	35.17		(b/e)
Total loans (GAAP)	$	8,808,013		$	8,938,988		$	9,246,691		$	9,392,866		$	9,405,193
Total loans, excluding PPP (Non-GAAP)	$	8,424,442		$	8,456,338		$	8,400,390		$	8,600,956		$	8,593,470
Allowance as a % of total loans (GAAP)	1.05		%	1.15		%	1.16		%	1.21		%	1.23		%
Allowance as a % of total loans, excluding PPP (Non-GAAP)	1.09		%	1.21		%	1.28		%	1.32		%	1.35		%

Critical Accounting Policies

Critical accounting policies are defined as those that are reflective of significant judgments and uncertainties, and could potentially result in materially different results under different assumptions and conditions. The Company believes that the most critical accounting policies are those which the Company’s financial condition depends upon, and which involve the most complex or subjective decisions or assessments.

There have been no material changes in critical accounting policies during the first nine months of 2021. Refer to the Company's 2020 Form 10-K for a complete listing of critical accounting policies.

FINANCIAL POSITION

Securities Portfolio The Company’s securities portfolio consists of trading securities, equity securities, securities available for sale, and securities which management intends to hold until maturity. Securities increased by $1.2 billion, or 99.5%, at September 30, 2021 as compared to December 31, 2020, reflecting $1.4 billion of purchases offset by paydowns, called securities, and maturities. Purchases made during 2021 reflect the Company's continued direct strategy to deploy a portion of excess cash balances into investment securities. The ratio of securities to total assets was 16.0% and 8.8% at September 30, 2021 and December 31, 2020, respectively. The Company estimates expected credit losses for its available for sale and held to maturity securities in accordance with the current expected credit loss ("CECL") methodology. Further details regarding the Company's measurement of expected credit losses on securities can be found in Note 3 “Securities” within the Notes to Consolidated Financial Statements included in Part I. Item 1 of this Report.

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    Residential Mortgage Loan Sales The Company’s primary loan sale activity arises from the sale of government sponsored enterprise eligible residential mortgage loans. The Company originates residential loans with the intention of selling them in the secondary market or holding them in the Company's residential real estate portfolio. When a loan is sold, the Company enters into agreements that contain representations and warranties about the characteristics of the loans sold and their origination. The Company may be required to either repurchase mortgage loans or to indemnify the purchaser from losses if representations and warranties are breached. The Company incurred no material losses related to residential mortgage repurchases during the three and nine months ended September 30, 2021 and 2020, respectively.

    The Company experienced strong closing volumes within the residential real estate portfolio during the three and nine months ended September 30, 2021, with a larger portion of residential real estate closings being retained in the portfolio rather than sold into the secondary market as compared to prior year periods. The following table shows the total residential real estate loans that were closed and whether the amounts were held in the portfolio or sold/held for sale in the secondary market during the periods indicated:

Table 1 - Closed Residential Real Estate Loans

	Three Months Ended September 30				Nine Months Ended September 30
	2021		2020		2021		2020
	(Dollars in thousands)
Held in portfolio	$	65,832	$	54,826	$	279,176	$	125,392
Sold or held for sale in the secondary market	183,794		262,323		611,795		654,772
Total closed loans	$	249,626	$	317,149	$	890,971	$	780,164

    The table below reflects additional information related to the loans which were sold during the periods indicated:

Table 2 - Residential Mortgage Loan Sales

	Three Months Ended September 30				Nine Months Ended September 30
	2021		2020		2021		2020
	(Dollars in thousands)
Sold with servicing rights released	$	171,256	$	252,907	$	618,171	$	581,206
Sold with servicing rights retained (1)	3,029		—		11,116		45,394
Total loans sold	$	174,285	$	252,907	$	629,287	$	626,600

(1) All loans sold with servicing rights retained during the nine months ended September 30, 2021 were sold without recourse.

    When a loan is sold, the Company may decide to also sell the servicing of sold loans for a servicing release premium, simultaneously with the sale of the loan, or the Company may opt to sell the loan and retain the servicing. In the event of a sale with servicing rights retained, a mortgage servicing asset is established, which represents the then current estimated fair value based on market prices for comparable mortgage servicing contracts, when available, or alternatively is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Servicing rights are recorded in other assets in the consolidated balance sheets, are amortized in proportion to and over the period of estimated net servicing income, and are assessed for impairment based on fair value at each reporting date. Impairment is determined by stratifying the rights based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance, to the extent that fair value is less than the capitalized amount. If the Company later determines that all or a portion of the impairment no longer exists, a reduction of the allowance may be recorded as an increase to income. The principal balance of loans serviced by the Bank on behalf of investors was $342.3 million, $453.7 million and $508.7 million at September 30, 2021, December 31, 2020, and September 30, 2020, respectively.

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    The following table shows the adjusted cost of the servicing rights associated with these loans and the changes for the periods indicated:

Table 3 - Mortgage Servicing Asset

	Three Months Ended September 30				Nine Months Ended September 30
	2021		2020		2021		2020
	(Dollars in thousands)
Balance at beginning of period	$	2,295	$	3,321	$	2,365	$	5,116
Additions	30		—		95		424
Amortization	(244)		(316)		(769)		(927)
Change in valuation allowance	122		(250)		512		(1,858)
Balance at end of period	$	2,203	$	2,755	$	2,203	$	2,755

See Note 6, “Derivative and Hedging Activities” within the Notes to Consolidated Financial Statements included in Part I. Item 1 of this Report for more information on mortgage activity and mortgage related derivatives.

Loan Portfolio Total loans at September 30, 2021 decreased by $584.9 million, or 6.23%, when compared to December 31, 2020, which was primarily attributable to a net reduction in PPP loan balances of $408.3 million, or 51.6%. Despite strong origination volumes and loan pipelines across all products, overall portfolio growth continued to be constrained by ongoing paydowns and re-financing activity. Excluding PPP loans of $383.6 million and $791.9 million outstanding at September 30, 2021 and December 31, 2020, respectively, total loans declined by $176.5 million or 2.05%, for the nine months ended September 30, 2021. Exclusive of PPP loans, commercial loan balances decreased by $36.2 million, or 0.6%, from December 31, 2020 to September 30, 2021, as strong pipelines and closing activity continued to be counterbalanced by elevated payoffs and lower line utilization levels. Consumer loan balances also declined with increased prepayments and refinancing activity, as well as lower home equity line utilization, which resulted in reductions of 5.7% and 6.4% within the residential mortgage and home equity portfolios, respectively, for the nine months ended September 30, 2021. (See "Non-GAAP Measures" in the "Executive Level Overview" above for a reconciliation to the GAAP financial measure, including the measure of total loans, excluding PPP).

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    The Company's commercial loan portfolio is comprised primarily of commercial and industrial loans, commercial real estate loans. Management considers the Company’s commercial and industrial portfolio to be well-diversified with loans to various types of industries. The Company's participation in the PPP resulted in significant loan fundings within the commercial and industrial category throughout 2020 and first half of 2021, with outstanding balances totaling $383.6 million at September 30, 2021, comprising 23.4% of the total commercial and industrial category. Accordingly, the composition of the portfolio by sector is skewed as compared to periods prior to the commencement of the PPP in the second quarter of 2020, as the PPP loans are reflected within the various sectors below. In connection with PPP loan originations during the first half of 2021, the Company recognized fee revenue of $18.3 million, which is deferred and amortized over the life of the loan. During the three and nine months ended September 30, 2021, the Company amortized into income $2.2 million and $18.9 million, respectively, in PPP fee revenue related to loans forgiven under the program. The following pie chart shows the diversification of the commercial and industrial portfolio as of September 30, 2021:

	(Dollars in thousands)
Average loan size (excluding floor plan tranches)	$	218
Largest individual commercial and industrial loan outstanding	$	24,962
Commercial and industrial nonperforming loans/commercial and industrial loans	1.17		%

The Company’s commercial real estate loan portfolio, inclusive of commercial construction, is the Company’s largest loan type concentration. The Company believes that this portfolio is also well-diversified with loans secured by a variety of property types, such as owner-occupied and nonowner-occupied commercial, retail, office, industrial, warehouse, and other special purpose properties, such as hotels, motels, nursing homes, restaurants, churches, recreational facilities, marinas, and golf courses. Commercial real estate also includes loans secured by certain residential-related property types, including multi-family apartment buildings, residential development tracts and condominiums. The following pie chart shows the diversification of the commercial real estate loan portfolio as of September 30, 2021:

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	(Dollars in thousands)
Average loan size	$	1,117
Largest individual commercial real estate mortgage outstanding	$	33,354
Commercial real estate nonperforming loans/commercial real estate loans	0.25		%
Owner occupied commercial real estate loans/commercial real estate loans	15.1		%

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    The Company's consumer portfolio primarily consists of both fixed-rate and adjustable-rate residential real estate loans as well as residential construction lending related to single-home residential development within the Company's market area. The Company also provides home equity loans and lines of credit that may be made as a fixed-rate term loan or under a variable rate revolving line of credit secured by a first or junior mortgage on the borrower's residence or second home. Additionally, the Company makes loans for a wide variety of other personal needs. Other consumer loans primarily consist of installment loans and overdraft protections. The residential real estate, home equity and other consumer portfolios totaled $2.2 billion at September 30, 2021, as noted below:

Asset Quality   The Company continually monitors the asset quality of the loan portfolio using all available information. Based on this assessment, loans demonstrating certain payment issues or other weaknesses may be categorized as delinquent, nonperforming and/or put on nonaccrual status. In the course of resolving such loans, the Company may choose to restructure the contractual terms of certain loans to match the borrower’s ability to repay the loan based on their current financial condition. If a restructured loan meets certain criteria, it may be categorized as a troubled debt restructuring ("TDR"). In addition, the Company has offered need-based payment relief options for commercial and small business loans, residential mortgages, and home equity loans and lines of credit in response to the COVID-19 pandemic. In accordance with the Coronavirus Aid, Relief and Economic Security Act ("CARES Act"), these modifications are not accounted for as TDRs or reflected as delinquent or non-accrual loans if the borrower was in compliance with the loan terms as of December 31, 2019.

Delinquency    The Company’s philosophy toward managing its loan portfolios is predicated upon careful monitoring, which stresses early detection and response to delinquent and default situations.  The Company seeks to make arrangements to resolve any delinquent or default situation over the shortest possible time frame.  Generally, the Company requires that a delinquency notice be mailed to a borrower upon expiration of a grace period (typically no longer than 15 days beyond the due date).  Reminder notices may be sent and telephone calls may be made prior to the expiration of the grace period. If the delinquent status is not resolved within a reasonable time frame following the mailing of a delinquency notice, the Bank’s personnel charged with managing its loan portfolios contacts the borrower to ascertain the reasons for delinquency and the prospects for payment.  Any subsequent actions taken to resolve the delinquency will depend upon the nature of the loan and the length of time that the loan has been delinquent. The borrower’s needs are considered as much as reasonably possible without jeopardizing the Bank’s position. A late charge is usually assessed on loans upon expiration of the grace period.

Nonaccrual Loans    As a general rule, loans 90 days or more past due with respect to principal or interest are classified as nonaccrual loans. However, certain loans that are 90 days or more past due may be kept on an accruing status if the loans are well secured and in the process of collection. Income accruals are suspended on all nonaccrual loans and all previously accrued

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and uncollected interest is reversed against current income. A loan remains on nonaccrual status until it becomes current with respect to principal and interest (and in certain instances remains current for up to six months), the loan is liquidated, or when the loan is determined to be uncollectible and is charged-off against the allowance for credit losses.

Troubled Debt Restructurings      In the course of resolving problem loans, the Company may choose to restructure the contractual terms of certain loans. The Company attempts to work out an alternative payment schedule with the borrower in order to avoid or cure a default. Loans that are modified are reviewed by the Company to identify if a TDR has occurred, which is when, for economic or legal reasons related to a borrower’s financial difficulties, the Bank grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status and the restructuring of the loan may include adjustments to interest rates, extensions of maturity, consumer loans where the borrower's obligations have been effectively discharged through Chapter 7 Bankruptcy and the borrower has not reaffirmed the debt to the Bank, and other actions intended to minimize economic loss and avoid foreclosure or repossession of collateral. If such efforts by the Bank do not result in satisfactory performance, the loan is referred to legal counsel, at which time foreclosure proceedings are initiated. At any time prior to a sale of the property at foreclosure, the Bank may terminate foreclosure proceedings if the borrower is able to work out a satisfactory payment plan.

    It is the Company’s policy to have any restructured loans which are on nonaccrual status prior to being modified remain on nonaccrual status for six months, subsequent to being modified, before management considers their return to accrual status. If the restructured loan is on accrual status prior to being modified, it is reviewed to determine if the modified loan should remain on accrual status. Loans that are considered TDRs are classified as performing, unless they are on nonaccrual status or are delinquent for 90 days or more. Loans classified as TDRs remain classified as such for the life of the loan, except in limited circumstances, when it may be determined that the borrower is performing under modified terms and the restructuring agreement specified an interest rate greater than or equal to an acceptable market rate for a comparable new loan at the time of the restructuring.

    Purchased Credit Deteriorated Loans    Purchased Credit Deteriorated ("PCD") loans are acquired loans which have shown a more-than-insignificant deterioration in credit quality since origination. PCD loans are recorded at amortized cost with an allowance for credit losses recorded upon purchase, as appropriate.

Nonperforming Assets     Nonperforming assets are typically comprised of nonperforming loans and other real estate owned. Nonperforming loans consist of nonaccrual loans and loans that are 90 days or more past due but still accruing interest.

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The following table sets forth information regarding nonperforming assets held by the Company at the dates indicated:

Table 4 - Nonperforming Assets

	September 30 2021			December 31 2020			September 30 2020
	(Dollars in thousands)
Loans accounted for on a nonaccrual basis
Commercial and industrial	$	19,275		$	34,729		$	36,851
Commercial real estate	11,788			10,195			38,164
Small business	46			825			542
Residential real estate	10,872			15,528			16,229
Home equity	3,746			5,427			6,159
Other consumer	83			156			79
Total (1)	$	45,810		$	66,860		$	98,024
Loans past due 90 days or more but still accruing
Other consumer	—			1			1
Total	$	—		$	1		$	1
Total nonperforming loans	$	45,810		$	66,861		$	98,025
Other real estate owned	—			—			—
Total nonperforming assets	$	45,810		$	66,861		$	98,025
Nonperforming loans as a percent of gross loans	0.52		%	0.71		%	1.04		%
Nonperforming assets as a percent of total assets	0.32		%	0.51		%	0.74		%

(1)Inclusive of TDRs on nonaccrual status of $21.1 million, $22.2 million, and $23.8 million at September 30, 2021, December 31, 2020, and September 30, 2020, respectively.

    The following table summarizes the changes in nonperforming assets for the periods indicated:

Table 5 - Activity in Nonperforming Assets

	Three Months Ended
	March 31
	2021				2020
	Three Months Ended				Nine Months Ended
	September 30 2021		September 30 2020		September 30 2021		September 30 2020
	(Dollars in thousands)
Nonperforming assets beginning balance	$	47,818	$	48,814	$	66,861	$	48,049
New to nonperforming (1)	4,613		60,850		9,205		75,580
Loans charged-off	(332)		(4,304)		(4,499)		(5,748)
Loans paid-off	(3,488)		(5,050)		(17,877)		(12,339)
Loans restored to performing status	(2,813)		(2,229)		(8,143)		(7,319)
Other	12		(56)		263		(198)
Nonperforming assets ending balance	$	45,810	$	98,025	$	45,810	$	98,025

(1)The higher balance for the periods ended September 30, 2020 primarily reflect three large commercial relationships that were newly nonperforming, all related to industries previously identified as being highly impacted by the COVID-19 pandemic.

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The following table sets forth information regarding troubled debt restructured loans as of the dates indicated:

Table 6 - Troubled Debt Restructurings

	September 30 2021			December 31 2020			September 30 2020
	(Dollars in thousands)
Performing troubled debt restructurings	$	15,950		$	16,983		$	17,521
Nonaccrual troubled debt restructurings	21,104			22,209			23,810
Total	$	37,054		$	39,192		$	41,331
Performing troubled debt restructurings as a % of total loans	0.18		%	0.18		%	0.19		%
Nonaccrual troubled debt restructurings as a % of total loans	0.24		%	0.24		%	0.25		%
Total troubled debt restructurings as a % of total loans	0.42		%	0.42		%	0.44		%

The following table summarizes changes in TDRs for the periods indicated:

Table 7 - Activity in Troubled Debt Restructurings

	Three Months Ended				Nine Months Ended
	September 30 2021		September 30 2020		September 30 2021		September 30 2020
	(Dollars in thousands)
TDRs beginning balance	$	39,707	$	41,839	$	39,192	$	44,365
New to TDR status	—		625		3,918		1,874
Paydowns	(2,637)		(1,133)		(6,040)		(4,886)
Charge-offs	(16)		—		(16)		(22)
TDRs ending balance	$	37,054	$	41,331	$	37,054	$	41,331

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    Income accruals are suspended on all nonaccrual loans and all previously accrued and uncollected interest is reversed against current income. The table below shows interest income that was recognized or collected on all nonaccrual loans and TDRs for the periods indicated:

Table 8 - Interest Income - Nonaccrual Loans and Troubled Debt Restructurings

	Three Months Ended				Nine Months Ended
	September 30 2021		September 30 2020		September 30 2021		September 30 2020
	(Dollars in thousands)
The amount of incremental gross interest income that would have been recorded if nonaccrual loans had been current in accordance with their original terms	$	678	$	744	$	2,289	$	1,909
The amount of interest income on nonaccrual loans and performing TDRs that was included in net income	$	257	$	345	$	673	$	804

Potential problem loans are any loans which are not included in nonaccrual or nonperforming loans, where known information about possible credit problems of the borrowers causes management to have concerns as to the ability of such borrowers to comply with present loan repayment terms. At September 30, 2021, there were 79 relationships, with an aggregate balance of $135.7 million, deemed to be potential problem loans. These potential problem loans continued to perform with respect to payments. Management actively monitors these loans and strives to minimize any possible adverse impact to the Company. A portion of the potential problem loans identified by management were granted a deferral in accordance with the relief options offered in response to the COVID-19 pandemic. If applicable, these potential problem loans with an active deferral as of September 30, 2021 have been included in the table below.

As previously noted, the Company has offered need-based payment relief options to its customers in response to the COVID-19 pandemic, primarily in the form of payment deferrals, all of which were granted prior to December 31, 2020. Loans that were modified are not accounted for as TDRs or reflected as delinquent or nonaccrual loans if the borrower was in compliance with their loan terms as of December 31, 2019. The following table summarizes active deferrals by modification type as of September 30, 2021:

Table 9 - Deferrals by Modification Type

	Deferral of Principal and Interest		Deferral of Principal Only		Deferral of Interest Only		Total Deferrals		Total Portfolio		% Deferral
	(Dollars in thousands)
Commercial and industrial	$	2,300	$	560	$	1,165	$	4,025	$	1,640,709	0.2	%
Commercial real estate (1)	7,950		210,335		—		218,285		4,736,674		4.6	%
Business banking	—		588		—		588		184,138		0.3	%
Residential real estate	—		—		—		—		1,222,849		—	%
Home equity	—		—		—		—		1,000,468		—	%
Consumer	—		—		—		—		23,175		—	%
Total active deferrals as of September 30, 2021	$	10,250	$	211,483	$	1,165	$	222,898	$	8,808,013	2.5	%

(1) Balances include commercial construction deferrals.

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As a result of the COVID-19 pandemic, management has also enhanced monitoring of loan portfolios in certain industries that have been highly impacted. While management is unable to predict the full impact on all industries affected by the COVID-19 pandemic, there are assumptions as to which industries have been, and may continue to be, more greatly impacted by social distancing and other restrictive measures, as well as the duration or re-imposition of any such restrictions. Management has identified approximately $1.3 billion of loans within highly impacted industries, including Accommodations, Food Services, Retail Trade, Other Services (except Public Administration), and Arts, Entertainment and Recreation. Loss exposure within these industries is mitigated by a number of factors such as collateral values, loan-to-value ratios, and other key indicators, however, some degree of credit loss is expected and has been incorporated into the allowance for credit loss recognition under the CECL model.

The table below provides total outstanding balances of commercial loans as of the date indicated within industries that management has deemed to be highly impacted by the COVID-19 pandemic:

Table 10 - Industries Highly Impacted By COVID-19 - Details

	September 30, 2021
	(Dollars in thousands)
Accommodations
Balance	$	388,083
Average borrower loan size	$	4,283
% secured by real estate	99.8		%
Weighted average loan to value	54.0		%
Other information:
–The accommodation portfolio consists of 65 properties representing a combination of flagged (61%) and non-flagged (39%) hotels, motels and inns.
–Loans secured by hotel properties deemed to be located in areas of leisure comprise $146.6 million, or 38% of the hotel portfolio.
–Approximately 89% of the balances outstanding are secured by properties located within the six New England states with the largest concentration in Massachusetts (60%).
Food Services
Balance	$	142,059
Average borrower loan size	$	384
% secured by real estate	67.7		%
Weighted average loan to value	50.5		%
Other information:
–The food services portfolio includes full-service restaurants (55%), limited service restaurants and fast food (43%), and other types of food service (caterers, bars, and mobile food service 2%).
Retail Trade
Balance	$	527,957
Average borrower loan size	$	499
% secured by real estate	43.3		%
Weighted average loan to value	57.4		%
Other information:
–The retail trade portfolio consists broadly of food and beverage stores (47%), motor vehicle and parts dealers (24%), and gasoline stations (14%). All other retailers account for 15% of the current outstanding balance.
–Collateral for these loans varies and may consist of real estate, motor vehicles inventories, other types of inventories and general business assets.
Other Services (except Public Administration)
Balance	$	139,679

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Average borrower loan size	$	250
% secured by real estate	51.6		%
Weighted average loan to value	48.8		%
Other information:
–The other services portfolio consists of various for-profit and not-for-profit services diversified across religious, civic and social service organizations (43%), repair and maintenance business (31%) and other personal services, including beauty salons, laundry services, pet care and other types of services (26%).
Arts, Entertainment, and Recreation
Balance	$	99,699
Average borrower loan size	$	793
% secured by real estate	85.5		%
Weighted average loan to value	52.3		%
Other information:
–Amusement, gambling and recreational industries make up a majority of this category (95%) and include amusement/theme parks, bowling centers, fitness centers, golf courses, marinas, and other recreational industries. Other industries including museums, performing arts, and spectator sports account for the remaining outstanding balances (5%).

Allowance for Credit Losses  The allowance for credit losses is maintained at a level that management considers appropriate to provide for the Company's current estimate of expected lifetime credit losses on loans measured at amortized cost. The allowance is increased by providing for credit losses through a charge to expense and by credits for recoveries of loans previously charged-off and is reduced by loans being charged-off.

In accordance with the CECL methodology, the Company estimates credit losses for financial assets on a collective basis for loans sharing similar risk characteristics using a quantitative model combined with an assessment of certain qualitative factors designed to address forecast risk and model risk inherent in the quantitative model output. The model estimates expected credit losses using loan level data over the contractual life of the exposure, considering the effect of prepayments. Economic forecasts are incorporated into the estimate over a reasonable and supportable forecast period of one year, beyond which is a reversion to the Company's historical long-run average for a period of 6 months. The Company's qualitative assessment is structured based upon nine environmental factors impacting the expected risk of loss within the loan portfolio. Loans that do not share similar risk characteristics with any pools of assets are subject to individual assessment and are removed from the collectively assessed pools to avoid double counting. For the loans that will be individually assessed, the Company uses either a discounted cash flow (“DCF”) approach or a fair value of collateral approach. The latter approach is used for loans deemed to be collateral dependent or when foreclosure is probable.

The allowance for credit losses of $92.2 million at September 30, 2021 represents a decrease of $21.1 million, or 18.6% compared to December 31, 2020. The Company recorded a release of provision for credit losses of $17.5 million during the nine months ended September 30, 2021, reflecting improvements in expected overall macro-economic forecast assumptions and continued strong asset quality metrics, along with lower loan levels. As a result, the allowance for credit losses at September 30, 2021 includes a release of qualitative reserves that reflects a general reduction in potential risk previously assessed on portions of the portfolio related to industries expected to be at heightened risk due to the COVID-19 pandemic, while reserves related to loans with non-owner occupied real estate and junior lien home equity collateral positions were also reduced as performance trends within these portfolio segments remained relatively strong during the third quarter of 2021. Quantitative reserves also decreased as of September 30, 2021, attributable to continued improvements in credit quality, including decreases in the weighted average probability of default across most portfolios, as well as increased stability in economic variables.

While management is unable to know with certainty the direct, indirect, and future impacts of the COVID-19 pandemic, it is expected that the pandemic could potentially have a significant impact on future losses across a broad range of loan segments. As such, the allowance for credit losses at September 30, 2021 continues to reflect elevated reserve allocations to those loan segments that management considers to have heightened loss exposure associated with the COVID-19 pandemic. The reasonable and supportable forecast modeled in the allowance for credit losses incorporates an economic scenario which reflects management's assumption that some uncertainty remains as the economy recovers, such as that the federal funds rates

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will remain near 0% through 2023, and that recent federal stimulus activity will be less effective as consumers are reluctant to spend the funds, some concerns about the speed of widespread vaccine administration, and the efficacy of the vaccines and the possibility for resurgences of COVID-19 or other variants of the virus.

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    The following table summarizes changes in the allowance for credit losses and other selected statistics for the periods presented:

Table 11 - Summary of Changes in the Allowance for Credit Losses

	Three Months Ended
	September 30 2021			June 30 2021			March 31 2021			December 31 2020			September 30 2020
	(Dollars in thousands)
Average total loans	$	8,827,249		$	9,107,446		$	9,343,769		$	9,396,192		$	9,375,522
Allowance for credit losses, beginning of period	$	102,357		$	107,549		$	113,392		$	115,625		$	112,176
Charged-off loans
Commercial and industrial	1			142			3,331			2,124			185
Commercial real estate	—			—			—			—			3,885
Commercial construction	—			—			—			—			—
Small business	83			35			66			186			49
Residential real estate	—			—			—			105			—
Home equity	—			69			—			—			—
Other consumer	248			235			289			283			185
Total charged-off loans	332			481			3,686			2,698			4,304
Recoveries on loans previously charged-off
Commercial and industrial	1			35			64			242			1
Commercial real estate	—			—			57			—			9
Commercial construction	—			—			—			—			—
Small business	50			4			11			25			2
Residential real estate	—			—			1			—			1
Home equity	49			45			13			36			21
Other consumer	121			205			197			162			219
Total recoveries	221			289			343			465			253
Net loans charged-off (recovered)
Commercial and industrial	—			107			3,267			1,882			184
Commercial real estate	—			—			(57)			—			3,876
Commercial construction	—			—			—			—			—
Small business	33			31			55			161			47
Residential real estate	—			—			(1)			105			(1)
Home equity	(49)			24			(13)			(36)			(21)
Other consumer	127			30			92			121			(34)
Total net loans charged-off	111			192			3,343			2,233			4,051
Provision for credit losses	(10,000)			(5,000)			(2,500)			—			7,500
Total allowance for credit losses, end of period	$	92,246		$	102,357		$	107,549		$	113,392		$	115,625
Net loans charged-off as a percent of average total loans (annualized)	0.00		%	0.01		%	0.15		%	0.09		%	0.17		%
Allowance for credit losses as a percent of total loans	1.05		%	1.15		%	1.16		%	1.21		%	1.23		%
Allowance for credit losses as a percent of nonperforming loans	201.37		%	214.06		%	181.67		%	169.59		%	117.95		%

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For purposes of the allowance for credit losses, management segregates the loan portfolio into the portfolio segments detailed in the table below. The allocation of the allowance for credit losses is made to each loan category using the analytical techniques and estimation methods described in this Report. While these amounts represent management’s best estimate of credit losses at the evaluation dates, they are not necessarily indicative of either the categories in which actual losses may occur or the extent of such actual losses that may be recognized within each category. Each of these loan categories possess unique risk characteristics that are considered when determining the appropriate level of allowance for each segment. The total allowance is available to absorb losses from any segment of the loan portfolio.

The following table sets forth the allocation of the allowance for credit losses by loan category at the dates indicated:

Table 12 - Summary of Allocation of Allowance for Credit Losses

	September 30 2021				December 31 2020
	Allowance Amount		Percent of Loans In  Category To Total Loans		Allowance Amount		Percent of Loans In  Category To Total Loans
	(Dollars in thousands)
Commercial and industrial (1)	$	16,014	18.5	%	$	21,086	22.4	%
Commercial real estate	37,798		47.9	%	45,009		44.4	%
Commercial construction	4,468		5.9	%	5,397		5.9	%
Small business	3,667		2.1	%	5,095		1.9	%
Residential real estate	11,047		13.9	%	14,275		13.8	%
Home equity	18,868		11.4	%	22,060		11.4	%
Other consumer	384		0.3	%	470		0.2	%
Total allowance for credit losses	$	92,246	100.0	%	$	113,392	100.0	%

(1)This loan category includes loans originated as part of the PPP established by the CARES Act, which have been excluded from the credit loss calculations because these loans are 100% guaranteed by the U.S. Government.

To determine if a loan should be charged-off, all possible sources of repayment are analyzed. Possible sources of repayment include the potential for future cash flows, the value of the Bank’s collateral, and the strength of co-makers or guarantors. When available information confirms that specific loans or portions thereof are uncollectible, these amounts are promptly charged-off against the allowance for credit losses and any recoveries of such previously charged-off amounts are credited to the allowance.

Regardless of whether a loan is unsecured or collateralized, the Company charges off the amount of any confirmed loan loss in the period when the loans, or portions of loans, are deemed uncollectible. For troubled, collateral-dependent loans, loss-confirming events may include an appraisal or other valuation that reflects a shortfall between the value of the collateral and the carrying value of the loan or receivable, or a deficiency balance following the sale of the collateral.

For additional information regarding the Company’s allowance for credit losses, see Note 4 "Loans, Allowance for Credit Losses and Credit Quality" within the Notes to Consolidated Financial Statements included in Part I. Item 1 of this Report.

Federal Home Loan Bank Stock The Bank held investments in FHLB of Boston stock of $8.7 million and $10.3 million at September 30, 2021 and December 31, 2020, respectively. The FHLB is a cooperative that provides services to its member banking institutions. The primary reason for the FHLB of Boston membership is to gain access to a reliable source of wholesale funding as a tool to manage liquidity and interest rate risk. The purchase of stock in the FHLB is a requirement for a member to gain access to funding. The Company either purchases additional FHLB stock or is subject to redemption of FHLB stock proportional to the volume of funding received. The Company views the holdings as a necessary long-term investment for the purpose of balance sheet liquidity and not for investment return.

    Goodwill and Other Intangible Assets Goodwill and other intangible assets were $525.3 million and $529.3 million at September 30, 2021 and December 31, 2020, respectively. The decrease was primarily due to amortization of definite-lived intangibles.

The Company typically performs its annual goodwill impairment testing during the third quarter of the year, unless certain indicators suggest earlier testing to be warranted. Accordingly, the Company last performed its annual goodwill

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impairment testing during the third quarter of 2021 and determined that the Company's goodwill was not impaired as of September 30, 2021. Other intangible assets are also reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. There were no events or changes during the third quarter of 2021 that indicated impairment of goodwill and other intangible assets.

Cash Surrender Value of Life Insurance Policies The Bank holds life insurance policies for the purpose of offsetting its future obligations to its employees under its retirement and benefits plans. The cash surrender value of life insurance policies was $244.6 million at September 30, 2021 compared to $200.5 million at December 31, 2020, representing an increase of $44.0 million, or 22.0%, primarily due to new policy purchases. The Company recorded tax exempt income from life insurance policies of $1.6 million and $1.3 million for the three months ended September 30, 2021 and 2020, respectively, and $4.5 million and $3.9 million for the nine months ended September 30, 2021 and 2020, respectively. There were no gains on life insurance benefits recorded for the three months ended September 30, 2021 and September 30, 2020. The Company recorded gains on life insurance benefits of $258,000, and $692,000 for the nine months ended September 30, 2021 and 2020, respectively.

Deposits As of September 30, 2021, total deposits were $12.3 billion, representing a $1.3 billion, or 11.5%, increase from December 31, 2020, as robust new account opening activity and the ongoing impact of government stimulus payments continued to fuel significant growth. The total cost of deposits was 0.05% and 0.20% for the three months ended September 30, 2021 and 2020, respectively and 0.07% and 0.31% for the nine months ended September 30, 2021 and 2020, respectively. Core deposits increased from 91.6% of total deposits as of June 30, 2021 to 92.0% of total deposits as of September 30, 2021, while noncore time deposits continued to runoff.

    The Company also participates in the IntraFi Network, allowing the Bank to provide easy access to multi-million dollar Federal Deposit Insurance Corporation ("FDIC") deposit insurance protection on certificate of deposit and money market investments for consumers, businesses and public entities. This channel allows the Company to seek additional funding in potentially large quantities by attracting deposits from outside the Bank’s core market, and amounted to $244.6 million and $237.9 million at September 30, 2021 and December 31, 2020, respectively. In addition, the Company may occasionally raise funds through the use of brokered deposits outside of the IntraFi Network, which amounted to $6.0 million and $8.5 million at September 30, 2021 and December 31, 2020, respectively.

Borrowings The Company’s borrowings consist of both short-term and long-term borrowings and provide the Bank with one of its primary sources of funding. Maintaining available borrowing capacity provides the Bank with a contingent source of liquidity.

The following table presents the components of borrowings as of the dates indicated:

Table 13 - Borrowings

	September 30 2021		December 31 2020
	(Dollars in thousands)
Federal Home Loan Bank borrowings	$	25,675	$	35,740
Long-term borrowings	18,750		32,773
Junior subordinated debentures	62,853		62,851
Subordinated debentures	49,767		49,696
Total borrowings	$	157,045	$	181,060

Additionally, the Bank had $3.6 billion and $4.1 billion of assets pledged as collateral against borrowings at September 30, 2021 and December 31, 2020, respectively. These assets are primarily pledged to the FHLB of Boston and the Federal Reserve Bank of Boston.

76

Capital Resources On September 16, 2021, the Company’s Board of Directors declared a cash dividend of $0.48 per share to shareholders of record as of the close of business on September 27, 2021. This dividend was paid on October 8, 2021.

    The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of Total, Tier 1 Capital and Common Equity Tier 1 Capital (as defined for regulatory purposes) to risk weighted assets (as defined for regulatory purposes) and Tier 1 Capital to average assets (as defined for regulatory purposes). At September 30, 2021 and December 31, 2020, the Company and the Bank exceeded the minimum requirements for all applicable ratios that were in effect during the respective periods. The Company’s and the Bank’s capital amounts and ratios are presented in the following table, along with the applicable minimum requirements as of each date indicated:

Table 14 - Company and Bank's Capital Amounts and Ratios 

	Actual				For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount			Ratio		Amount			Ratio
	September 30, 2021
	(Dollars in thousands)
Company (consolidated)
Total capital (to risk weighted assets)	$	1,432,353	15.78	%	$	726,292	≥	8.0	%	N/A			N/A
Common equity tier 1 capital (to risk weighted assets)	1,228,670		13.53	%	408,539		≥	4.5	%	N/A			N/A
Tier 1 capital (to risk weighted assets)	1,289,672		14.21	%	544,719		≥	6.0	%	N/A			N/A
Tier 1 capital (to average assets)	1,289,672		9.36	%	571,437		≥	4.0	%	N/A			N/A
Bank
Total capital (to risk weighted assets)	$	1,389,105	15.30	%	$	726,448	≥	8.0	%	$	908,060	≥	10.0	%
Common equity tier 1 capital (to risk weighted assets)	1,296,191		14.27	%	408,627		≥	4.5	%	590,239		≥	6.5	%
Tier 1 capital (to risk weighted assets)	1,296,191		14.27	%	544,836		≥	6.0	%	726,448		≥	8.0	%
Tier 1 capital (to average assets)	1,296,191		9.40	%	571,492		≥	4.0	%	714,365		≥	5.0	%
	December 31, 2020
	(Dollars in thousands)
Company (consolidated)
Total capital (to risk weighted assets)	$	1,374,349	15.13	%	$	726,482	≥	8.0	%	N/A			N/A
Common equity tier 1 capital (to risk weighted assets)	1,150,177		12.67	%	408,646		≥	4.5	%	N/A			N/A
Tier 1 capital (to risk weighted assets)	1,211,177		13.34	%	544,861		≥	6.0	%	N/A			N/A
Tier 1 capital (to average assets)	1,211,177		9.56	%	506,805		≥	4.0	%	N/A			N/A
Bank
Total capital (to risk weighted assets)	$	1,320,056	14.54	%	$	726,313	≥	8.0	%	$	907,892	≥	10.0	%
Common equity tier 1 capital (to risk weighted assets)	1,206,566		13.29	%	408,551		≥	4.5	%	590,130		≥	6.5	%
Tier 1 capital (to risk weighted assets)	1,206,566		13.29	%	544,735		≥	6.0	%	726,313		≥	8.0	%
Tier 1 capital (to average assets)	1,206,566		9.54	%	505,747		≥	4.0	%	632,184		≥	5.0	%

77

    In addition to the minimum risk-based capital requirements outlined in the table above, the Company is required to maintain a minimum capital conservation buffer, in the form of common equity, in order to avoid restrictions on capital distributions and discretionary bonuses. The required amount of the capital conservation buffer is 2.5%. At September 30, 2021, the Company's capital levels exceeded the buffer.

Dividend Restrictions The Company is subject to capital and dividend requirements administered by federal and state bank regulators, and the Company will not declare a cash dividend that would cause the Company to violate regulatory requirements. The Company is, in the ordinary course of business, dependent upon the receipt of cash dividends from the Bank to pay cash dividends to shareholders and satisfy the Company’s other cash needs. Federal and state law impose limits on capital distributions by the Bank. Massachusetts-chartered banks, such as the Bank, may declare from net profits cash dividends not more frequently than quarterly and non-cash dividends at any time. No dividends may be declared, credited, or paid if the Bank’s capital stock would be impaired. Massachusetts Bank Commissioner approval is required if the total of all dividends declared by the Bank in any calendar year would exceed the total of its net profits for that year combined with its retained net profits of the preceding two years, less any required transfer to surplus or a fund for the retirement of any preferred stock. Dividends of $33.9 million and $16.2 million were paid by the Bank to the Company for the three months ended September 30, 2021 and September 30, 2020, respectively, and dividends of $38.9 million and $139.8 million were paid by the Bank to the Company for the nine months ended September 30, 2021 and September 30, 2020, respectively.

Trust Preferred Securities In accordance with the applicable accounting standard related to variable interest entities, the common stock of trusts which have issued trust preferred securities has not been included in the consolidated financial statements of the Company. At each of September 30, 2021 and December 31, 2020 there were $61.0 million in trust preferred securities included in the Tier 1 capital of the Company for regulatory reporting purposes pursuant to the Federal Reserve's capital adequacy guidelines.

Investment Management As of September 30, 2021, the Rockland Trust Investment Management Group had assets under administration of $5.4 billion, representing 6,368 trust, fiduciary, and agency accounts. At December 31, 2020, assets under administration were $4.9 billion, representing approximately 6,175 trust, fiduciary, and agency accounts. Included in these amounts as of September 30, 2021 and December 31, 2020 were assets under administration of $405.9 million and $369.6 million, respectively, relating to the Company’s registered investment advisor, Bright Rock Capital Management, LLC, which provides institutional quality investment management services to institutional and high net worth clients. Revenue from the Investment Management Group was $8.1 million and $7.0 million for the three months ended September 30, 2021 and 2020, respectively, and $23.6 million and $20.1 million for the nine months ended September 30, 2021 and 2020, respectively.

Retail investments and insurance revenue was $1.0 million and $573,000 for the three months ended September 30, 2021 and 2020, respectively, and $2.8 million and $1.6 million for the nine months ended September 30, 2021 and 2020, respectively.

Retail investments and insurance revenue include commission revenue from LPL Financial (“LPL”) and its affiliates and their insurance subsidiary, LPL Insurance Associates, Inc., which offers the sale of mutual fund shares, unit investment trust shares, general securities, fixed and variable annuities and life insurance. Registered representatives who are both employed by the Bank and licensed and contracted with LPL are onsite to offer these products to the Bank’s customer base. These same agents are also approved and appointed with various other broker general agents for the purpose of processing insurance solutions for clients.

78

RESULTS OF OPERATIONS

    The following table provides a summary of results of operations for the three and nine months ended September 30, 2021 and 2020:

Table 15 - Summary of Results of Operations

	Three Months Ended September 30						Nine Months Ended September 30
	2021			2020			2021			2020
	(Dollars in thousands, except per share data)
Net income	$	40,007		$	34,873		$	119,290		$	86,526
Diluted earnings per share	$	1.21		$	1.06		$	3.61		$	2.59
Return on average assets	1.11		%	1.07		%	1.15		%	0.93		%
Return on average equity	9.04		%	8.21		%	9.20		%	6.80		%
Net interest margin	2.78		%	3.13		%	3.00		%	3.36		%

    The Company's results of operations for the nine months ended September 30, 2021 were positively impacted by a release of provision for credit losses in the amount of $17.5 million, as well as elevated interest income from forgiven PPP loans. In comparison, results for the same nine ended September 30, 2020 reflected an increased provision for credit loss of $52.5 million, driven by anticipated credit losses related to the COVID-19 pandemic.

Net Interest Income The amount of net interest income is affected by changes in interest rates and by the volume, mix, and interest rate sensitivity of interest-earning assets and interest-bearing liabilities.

On a fully tax equivalent basis ("FTE"), net interest income for the third quarter of 2021 was $90.3 million, representing a decrease of $801,000, or 0.9%, when compared to the third quarter of 2020. For the nine months ended September 30, 2021, the net interest income on a FTE basis was $279.7 million, representing an increase of $2.7 million, or 1.0%, when compared to the year ago period.

79

The following tables present the Company’s average balances, net interest income, interest rate spread, and net interest margin for the three and nine months ended September 30, 2021 and 2020. Nontaxable income from loans and securities is presented on a FTE basis by adjusting tax-exempt income upward by an amount equivalent to the prevailing income tax rate that would have been paid if the income had been fully taxable.

Table 16 - Average Balance, Interest Earned/Paid & Average Yields Quarter-to-Date

	Three Months Ended September 30
	2021						2020
	Average Balance		Interest Earned/ Paid		Yield/Rate		Average Balance		Interest Earned/ Paid		Yield/Rate
	(Dollars in thousands)
Interest-earning assets
Interest-earning deposits with banks, federal funds sold, and short term investments	$	2,135,031	$	815	0.15	%	$	997,921	$	254	0.10	%
Securities
Securities - trading	3,498		—		—	%	2,607		—		—	%
Securities - taxable investments	1,880,863		7,792		1.64	%	1,139,843		7,218		2.52	%
Securities - nontaxable investments (1)	468		5		4.24	%	1,146		11		3.82	%
Total securities	$	1,884,829	$	7,797	1.64	%	$	1,143,596	$	7,229	2.51	%
Loans held for sale	30,143		193		2.54	%	50,709		326		2.56	%
Loans (2)
Commercial and industrial (1)	1,640,422		15,309		3.70	%	2,033,385		17,724		3.47	%
Commercial real estate (1)	4,232,575		41,469		3.89	%	4,086,594		41,578		4.05	%
Commercial construction	507,393		4,916		3.84	%	568,007		5,126		3.59	%
Small business	181,953		2,341		5.10	%	168,662		2,303		5.43	%
Total commercial	6,562,343		64,035		3.87	%	6,856,648		66,731		3.87	%
Residential real estate	1,231,606		10,955		3.53	%	1,387,055		13,436		3.85	%
Home equity	1,007,371		9,043		3.56	%	1,107,685		9,658		3.47	%
Total consumer real estate	2,238,977		19,998		3.54	%	2,494,740		23,094		3.68	%
Other consumer	25,929		398		6.09	%	24,134		515		8.49	%
Total loans	$	8,827,249	$	84,431	3.79	%	$	9,375,522	$	90,340	3.83	%
Total interest-earning assets	$	12,877,252	$	93,236	2.87	%	$	11,567,748	$	98,149	3.38	%
Cash and due from banks	144,556						124,482
Federal Home Loan Bank stock	8,904						15,090
Other assets	1,268,199						1,313,194
Total assets	$	14,298,911					$	13,020,514
Interest-bearing liabilities
Deposits
Savings and interest checking accounts	$	4,426,106	$	338	0.03	%	$	3,836,488	$	838	0.09	%
Money market	2,375,492		443		0.07	%	2,087,822		945		0.18	%
Time deposits	795,943		852		0.42	%	1,076,546		3,649		1.35	%
Total interest-bearing deposits	$	7,597,541	$	1,633	0.09	%	$	7,000,856	$	5,432	0.31	%
Borrowings
Federal Home Loan Bank borrowings	$	31,118	$	165	2.10	%	$	145,766	$	408	1.11	%
Long-term borrowings	18,742		77		1.63	%	37,439		141		1.50	%
Junior subordinated debentures	62,852		432		2.73	%	62,850		438		2.77	%
Subordinated debentures	49,753		617		4.92	%	49,659		617		4.94	%

80

Total borrowings	$	162,465	$	1,291	3.15	%	$	295,714	$	1,604	2.16	%
Total interest-bearing liabilities	$	7,760,006	$	2,924	0.15	%	$	7,296,570	$	7,036	0.38	%
Noninterest bearing demand deposits	4,502,045						3,700,902
Other liabilities	280,754						332,937
Total liabilities	$	12,542,805					$	11,330,409
Stockholders' equity	1,756,106						1,690,105
Total liabilities and stockholders' equity	$	14,298,911					$	13,020,514
Net interest income (1)			$	90,312					$	91,113
Interest rate spread (3)					2.72	%					3.00	%
Net interest margin (4)					2.78	%					3.13	%
Supplemental information
Total deposits, including demand deposits	$	12,099,586	$	1,633			$	10,701,758	$	5,432
Cost of total deposits					0.05	%					0.20	%
Total funding liabilities, including demand deposits	$	12,262,051	$	2,924			$	10,997,472	$	7,036
Cost of total funding liabilities					0.09	%					0.25	%

(1)The total amount of adjustment to interest income and yield on a FTE basis was $220,000 and $230,000 for the three months ended September 30, 2021 and 2020, respectively. The FTE adjustment relates to tax exempt income relating to securities with average balances of $468,000 and $1.1 million and tax exempt income relating to loans with average balances of $61.2 million and $81.6 million, for the three months ended September 30, 2021 and 2020, respectively.

(2)Includes average nonaccruing loans.

(3)Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(4)Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.

81

Table 17 - Average Balance, Interest Earned/Paid & Average Yields Year-to-Date

	Nine Months Ended September 30
	2021						2020
	Average Balance		Interest Earned/ Paid		Yield/ Rate		Average Balance		Interest Earned/ Paid		Yield/ Rate
	(Dollars in thousands)
Interest-earning assets
Interest-earning deposits with banks, federal funds sold, and short-term investments	$	1,782,463	$	1,654	0.12	%	$	599,827	$	546	0.12	%
Securities
Securities - trading	3,267		—		—	%	2,421		—		—	%
Securities - taxable investments	1,550,859		21,603		1.86	%	1,178,671		23,006		2.61	%
Securities - nontaxable investments (1)	555		17		4.10	%	1,176		34		3.86	%
Total securities	$	1,554,681	$	21,620	1.86	%	$	1,182,268	$	23,040	2.60	%
Loans held for sale	35,953		675		2.51	%	43,150		917		2.84	%
Loans (2)
Commercial and industrial (1)	1,898,100		58,706		4.14	%	1,784,715		52,027		3.89	%
Commercial real estate (1)	4,195,200		123,377		3.93	%	4,050,154		129,800		4.28	%
Commercial construction	525,652		14,976		3.81	%	554,222		17,341		4.18	%
Small business	178,294		6,924		5.19	%	172,575		7,253		5.61	%
Total commercial	6,797,246		203,983		4.01	%	6,561,666		206,421		4.20	%
Residential real estate	1,242,991		34,449		3.71	%	1,473,812		41,856		3.79	%
Home equity	1,027,311		26,391		3.43	%	1,125,817		31,617		3.75	%
Total consumer real estate	2,270,302		60,840		3.58	%	2,599,629		73,473		3.78	%
Other consumer	23,382		1,241		7.10	%	25,643		1,587		8.27	%
Total loans	$	9,090,930	$	266,064	3.91	%	$	9,186,938	$	281,481	4.09	%
Total interest-earning assets	$	12,464,027	$	290,013	3.11	%	$	11,012,183	$	305,984	3.71	%
Cash and due from banks	147,269						122,302
Federal Home Loan Bank stock	9,516						17,645
Other assets	1,256,066						1,256,074
Total assets	$	13,876,878					$	12,408,204
Interest-bearing liabilities
Deposits
Savings and interest checking accounts	$	4,292,992	$	1,145	0.04	%	$	3,592,069	$	3,873	0.14	%
Money market	2,337,445		1,393		0.08	%	1,978,006		5,495		0.37	%
Time deposits	848,143		3,823		0.60	%	1,202,746		13,983		1.55	%
Total interest-bearing deposits	$	7,478,580	$	6,361	0.11	%	$	6,772,821	$	23,351	0.46	%
Borrowings
Federal Home Loan Bank borrowings	$	34,185	$	544	2.13	%	$	205,244	$	1,369	0.89	%
Long-term borrowings	23,434		282		1.61	%	61,240		1,045		2.28	%
Junior subordinated debentures	62,852		1,287		2.74	%	62,849		1,362		2.89	%
Subordinated debentures	49,729		1,852		4.98	%	49,635		1,852		4.98	%
Total borrowings	$	170,200	$	3,965	3.11	%	$	378,968	$	5,628	1.98	%
Total interest-bearing liabilities	$	7,648,780	$	10,326	0.18	%	$	7,151,789	$	28,979	0.54	%
Noninterest bearing demand deposits	4,213,764						3,257,058
Other liabilities	280,002						300,248

82

Total liabilities	$	12,142,546					$	10,709,095
Stockholders' equity	1,734,332						1,699,109
Total liabilities and stockholders' equity	$	13,876,878					$	12,408,204
Net interest income (1)			$	279,687					$	277,005
Interest rate spread (3)					2.93	%					3.17	%
Net interest margin (4)					3.00	%					3.36	%
Supplemental information
Total deposit, including demand deposits	$	11,692,344	$	6,361			$	10,029,879	$	23,351
Cost of total deposits					0.07	%					0.31	%
Total funding liabilities, including demand deposits	$	11,862,544	$	10,326			$	10,408,847	$	28,979
Cost of total funding liabilities					0.12	%					0.37	%

(1)The total amount of adjustment to present interest income and yield on a FTE basis was $658,000 and $720,000 for the nine months ended September 30, 2021 and 2020, respectively. The FTE adjustment relates to nontaxable investment securities with average balances of $555,000 and $1.2 million and tax exempt income relating to loans with average balances of $63.9 million and $83.0 million for the nine months ended September 30, 2021 and 2020, respectively.

(2)Includes average nonaccruing loans.

(3)Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.

(4)Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.

83

The following table presents certain information on a FTE basis regarding changes in the Company’s interest income and interest expense for the periods indicated. For each category of interest-earning assets and interest-bearing liabilities, information is provided with respect to changes attributable to: (1) changes in rate (change in rate multiplied by prior period volume), (2) changes in volume (change in volume multiplied by old rate), and (3) changes in volume/rate (change in volume multiplied by change in rate) which is allocated to the change due to rate column:

Table 18 - Volume Rate Analysis

	Three Months Ended September 30						Nine Months Ended September 30
	2021 Compared To 2020						2021 Compared To 2020
	Change Due to Rate		Change Due to Volume		Total Change		Change Due to Rate		Change Due to Volume		Total Change
	(Dollars in thousands)
Income on interest-earning assets
Interest earning deposits, federal funds sold and short term investments	$	272	$	289	$	561	$	31	$	1,077	$	1,108
Securities
Securities - taxable investments	(4,118)		4,692		574		(8,668)		7,265		(1,403)
Securities - nontaxable investments (1)	1		(7)		(6)		1		(18)		(17)
Total securities					568						(1,420)
Loans held for sale	(1)		(132)		(133)		(89)		(153)		(242)
Loans
Commercial and industrial (1)	1,010		(3,425)		(2,415)		3,374		3,305		6,679
Commercial real estate (1)	(1,594)		1,485		(109)		(11,071)		4,648		(6,423)
Commercial construction	337		(547)		(210)		(1,471)		(894)		(2,365)
Small business	(143)		181		38		(569)		240		(329)
Total commercial					(2,696)						(2,438)
Residential real estate	(975)		(1,506)		(2,481)		(852)		(6,555)		(7,407)
Home equity	260		(875)		(615)		(2,460)		(2,766)		(5,226)
Total consumer real estate					(3,096)						(12,633)
Other consumer	(155)		38		(117)		(206)		(140)		(346)
Total loans (1)(2)					(5,909)						(15,417)
Total income of interest-earning assets					$	(4,913)					$	(15,971)
Expense of interest-bearing liabilities
Deposits
Savings and interest checking accounts	$	(629)	$	129	$	(500)	$	(3,484)	$	756	$	(2,728)
Money market	(632)		130		(502)		(5,101)		999		(4,102)
Time certificates of deposits	(1,846)		(951)		(2,797)		(6,037)		(4,123)		(10,160)
Total interest bearing deposits					(3,799)						(16,990)
Borrowings
Federal Home Loan Bank borrowings	78		(321)		(243)		316		(1,141)		(825)
Line of Credit	—		—		—						—
Long-term borrowings	6		(70)		(64)		(118)		(645)		(763)
Junior subordinated debentures	(6)		—		(6)		(75)		—		(75)
Subordinated debentures	(1)		1		—		(4)		4		—
Total borrowings					(313)						(1,663)
Total expense of interest-bearing liabilities					(4,112)						(18,653)
Change in net interest income					$	(801)					$	2,682

(1)Reflects income determined on a FTE basis. See footnote (1) to tables 16 and 17 in this Report for the related adjustments.

(2)Loans include portfolio loans and nonaccrual loans; however, unpaid interest on nonaccrual loans has not been included for purposes of determining interest income.

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Provision For Credit Losses The provision for credit losses represents the charge to expense that is required to maintain an adequate level of allowance for credit losses. The Company recorded a release of provision for credit losses of $10.0 million and $17.5 million for the three and nine months ended September 30, 2021, primarily due to improvements in expected overall macro-economic forecast assumptions and continued strong asset quality metrics, as well as lower loan balances during 2021. In comparison, the Company recorded a provision expense of $7.5 million and $52.5 million for the three and nine months ended September 30, 2020, which was primarily driven by anticipated loan losses related to the COVID-19 pandemic. The Company’s allowance for credit losses, as a percentage of total loans, was 1.05% at September 30, 2021, 1.21% at December 31, 2020, and 1.23% at September 30, 2020. The Company recorded net charge-offs of $111,000 and $3.6 million for the three and nine months ended September 30, 2021, respectively, as compared to $4.1 million and $4.6 million for the three and nine months ended September 30, 2020, respectively. Refer to Note 4, "Loans, Allowance for Credit Losses and Credit Quality" within the Notes to Consolidated Financial Statements included in Part I. Item 1 of this Report, for further details surrounding the primary drivers of the provision for credit losses for the period.

Noninterest Income The following table sets forth information regarding noninterest income for the periods shown:

Table 19 - Noninterest Income

	Three Months Ended
	September 30				Change
	2021		2020		Amount		%
	(Dollars in thousands)
Deposit account fees	$	4,298	$	3,428	$	870	25.38	%
Interchange and ATM fees	3,441		3,044		397		13.04	%
Investment management	9,174		7,571		1,603		21.17	%
Mortgage banking income	2,825		7,704		(4,879)		(63.33)	%
Increase in cash surrender value of life insurance policies	1,596		1,314		282		21.46	%
Loan level derivative income	586		2,457		(1,871)		(76.15)	%
Unrealized gain on equity securities	—		308		(308)		(100.00)	%
Other noninterest income	4,537		3,521		1,016		28.86	%
Total	$	26,457	$	29,347	$	(2,890)	(9.85)	%
	Nine Months Ended
	September 30				Change
	2021		2020		Amount		%
	(Dollars in thousands)
Deposit account fees	$	11,704	$	11,227	$	477	4.25	%
Interchange and ATM fees	9,229		13,154		(3,925)		(29.84)	%
Investment management	26,350		21,696		4,654		21.45	%
Mortgage banking income	11,270		13,570		(2,300)		(16.95)	%
Gain on life insurance benefits	258		692		(434)		(62.72)	%
Increase in cash surrender value of life insurance policies	4,508		3,902		606		15.53	%
Loan level derivative income	875		8,918		(8,043)		(90.19)	%
Unrealized gain on equity securities	723		1,694		(971)		(57.32)	%
Other noninterest income	11,753		9,119		2,634		28.88	%
Total	$	76,670	$	83,972	$	(7,302)	(8.70)	%

The primary reasons for the variances in the noninterest income categories for the three and nine months ended September 30, 2021 as compared to the respective prior year periods shown in the preceding table include:

•Deposit fee income was impacted by the timing and extent of government mandated shutdowns and social distancing measures, as well as the timing of economic stimulus payments received by customers.

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•Interchange and ATM fees increased for the three months ended September 30, 2021 due to increased volume and rise in customer spending in comparison to the prior year period. Such fees decreased for the nine months ended September 30, 2021 in comparison to the year ago period, reflecting the negative impact of the Durbin Amendment, which the Company became subject to effective July 1, 2020 as a result of crossing the $10 billion asset threshold, coupled with an overall decrease in consumer spending as customers focused on retaining liquidity following the onset of COVID-19 pandemic late in the first quarter of 2020.

•Investment management income increased for the three and nine months ended September 30, 2021 in comparison to the year ago periods, primarily driven by more favorable market conditions during 2021, along with overall growth in assets under administration which increased 19.7% to $5.4 billion at September 30, 2021 from $4.5 billion at September 30, 2020.

•Mortgage banking income decreased during the three and nine months ended September 30, 2021 in comparison to the year ago periods. The changes are driven primarily by demand within the respective prevailing interest rate environments in those periods, as well as percentage of closings sold in the secondary market versus retained in the portfolio.

•Loan level derivative income decreased for the three and nine months ended September 30, 2021, primarily as a result of lower customer demand in comparison to the year ago periods.

•Unrealized gain on equity securities decreased for the three and nine months ended September 30, 2021, due primarily to significant market volatility during the first half of 2020 caused by the onset of the COVID-19 pandemic, the result of which was a sell-off late in the first quarter of 2020, followed by a period of elevated growth during the second and third quarters of 2020.

•Other noninterest income increased for the three and nine months ended September 30, 2021 compared to the prior year periods, primarily attributable to income recognized from other investments, income from like-kind exchanges and business credit card income.

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Noninterest Expense The following table sets forth information regarding non-interest expense for the periods shown:

Table 20 - Noninterest Expense

	Three Months Ended
	September 30				Change
	2021		2020		Amount		%
	(Dollars in thousands)
Salaries and employee benefits	$	42,235	$	38,409	$	3,826	9.96	%
Occupancy and equipment expenses	8,564		9,273		(709)		(7.65)	%
Data processing & facilities management	1,673		1,567		106		6.76	%
FDIC assessment	980		1,034		(54)		(5.22)	%
Advertising expense	884		1,215		(331)		(27.24)	%
Consulting expense	1,560		1,305		255		19.54	%
Amortization of intangible assets	1,310		1,449		(139)		(9.59)	%
Debit card expense	1,347		1,105		242		21.90	%
Loss on termination of derivatives	—		684		(684)		(100.00)	%
Merger and acquisition expenses	1,943		—		1,943		100.00%
Software maintenance	2,018		1,753		265		15.12	%
Other noninterest expenses	9,905		8,864		1,041		11.74	%
Total	$	72,419	$	66,658	$	5,761	8.64	%
	Nine Months Ended
	September 30				Change
	2021		2020		Amount		%
	(Dollars in thousands)
Salaries and employee benefits	$	124,759	$	113,027	$	11,732	10.38	%
Occupancy and equipment expenses	26,543		27,863		(1,320)		(4.74)	%
Data processing & facilities management	5,024		4,684		340		7.26	%
FDIC assessment	2,805		1,537		1,268		82.50	%
Advertising expense	2,949		3,107		(158)		(5.09)	%
Consulting expense	5,443		4,244		1,199		28.25	%
Amortization of intangible assets	4,037		4,704		(667)		(14.18)	%
Debit card expense	3,693		3,312		381		11.50	%
Loss on termination of derivatives	—		684		(684)		(100.00)	%
Merger and acquisition expenses	3,674		—		3,674		100.00%
Software maintenance	5,903		5,218		685		13.13	%
Other noninterest expenses	30,573		31,725		(1,152)		(3.63)	%
Total	$	215,403	$	200,105	$	15,298	7.64	%

The primary reasons for the variances in the noninterest expense categories for the three and nine months ended September 30, 2021 as compared to the respective prior year periods shown in the preceding table include:

•The increase in salaries and employee benefits for the three and nine months ended September 30, 2021 as compared to the prior year periods is primarily due to increases in incentive programs, commissions, payroll taxes, general salary increases, and retirement costs.

•Occupancy and equipment decreased during both the three and nine months ended September 30, 2021 as compared to the prior year periods. These decreases were primarily due to reductions in depreciation expense

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from disposals of equipment, as well as decreased computer hardware and software costs which were elevated in the prior year to facilitate remote work for employees after onset of the COVID-19 pandemic. Partially offsetting the decrease for the nine months ended September 30, 2021 were increases in cleaning costs and snow removal expenses in comparison to the prior year period.

•Data processing and facilities management expenses increased for both the three and nine months ended September 30, 2021 as compared to the prior year periods, primarily due to timing of certain initiatives and system upgrades.

•FDIC assessment increased for the nine months ended September 30, 2021, in comparison to year ago period as the Company previously benefited from a small bank assessment credit, which resulted in no expense during the first quarter of 2020 and reduced expense during the second quarter of 2020. Assessment fees for the three months ended September 30, 2021 were slightly lower than the year ago period, due to normal fluctuations in the company's assessment base.

•Consulting expense increased for the three and nine months ended September 30, 2021, in comparison to the prior year periods, primarily due to the Company's overall growth and implementation of strategic initiatives.

•The Company recorded merger and acquisitions expenses of $1.9 million and $3.7 million during the three and nine months ended September 30, 2021, respectively, relating to the Meridian acquisition. No such costs were incurred during either period in 2020.

•Software maintenance increased for the three and nine months ended September 30, 2021, as compared to the prior year periods, primarily due to the Company's continued investment in its technology infrastructure.

•Other noninterest expense for the three months ended September 30, 2021 increased when compared to the prior year period, with increases in recruitment expense, sponsorships, unrealized loss on equity securities, and legal fees. Other noninterest expense decreased for the nine months ended September 30, 2021 as compared to the prior year period, mainly due to decreases in unrealized loss on equity securities, prepayment fees on borrowings, loss on the sale of fixed assets, office supplies, retail branch traffic control, and miscellaneous other expenses.

Income Taxes The tax effect of all income and expense transactions is recognized by the Company in each year’s consolidated statements of income, regardless of the year in which the transactions are reported for income tax purposes. The following table sets forth information regarding the Company’s tax provision and applicable tax rates for the periods indicated:

Table 21 - Tax Provision and Applicable Tax Rates

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2021			2020			2021			2020
	(Dollars in thousands)
Combined federal and state income tax provision	$	14,122		$	11,199		$	38,506		$	21,126
Effective income tax rate	26.09		%	24.31		%	24.40		%	19.62		%
Blended statutory tax rate	27.92		%	27.89		%	27.92		%	27.89		%

    The Company’s effective tax rate in 2021 thus far is higher as compared to the year ago period primarily due to higher pre-tax income, as well as the impact of discrete items, including tax benefits related to low income housing tax credits and equity compensation.  The discrete tax amounts for the nine months ended September 30, 2020 also reflect a benefit of $4.7 million associated with the net operating loss (NOL) carryback provision of the CARES Act.  The NOL was generated in relation to the acquisition of Blue Hills Bancorp, Inc. in 2019. The effective tax rates in the table above are lower than the blended statutory tax rates due to the aforementioned discrete items as well as certain tax preference assets such as life insurance policies, tax exempt bonds, and federal tax credits. The Company’s blended statutory tax rate for the three and nine months ended September 30, 2021 are comparable to the year ago periods.

The Company invests in various low income housing projects, which are real estate limited partnerships that acquire, develop, own and operate low and moderate-income housing developments. As a limited partner in these operating partnerships, the Company will receive tax credits and tax deductions for losses incurred by the underlying properties. The investments are accounted for using the proportional amortization method and will be amortized over various periods through 2039, which represents the period that the tax credits and other tax benefits will be utilized. The total committed investment in

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these partnerships is $162.9 million, of which $88.7 million had been funded as of September 30, 2021. It is expected that the limited partnership investments will generate a net tax benefit of approximately $3.4 million for the fiscal year 2021 and a total of $22.4 million over the remaining life of the investments from the combination of the tax credits and operating losses.

Risk Management

The Board of Directors has approved an Enterprise Risk Management Policy to state the Company’s goals and objectives in identifying, measuring, and managing the risks associated with the Company’s current and near future anticipated size and complexity. Management is responsible for comprehensive enterprise risk management, and continually strives to adopt and implement practices that strike an appropriate balance between risk and reward and permit the achievement of strategic goals in a controlled environment.

The Company has implemented the “three lines of defense” enterprise risk management model. The first line of defense are the executives in charge of business units, operational areas, and corporate functions who, sometimes assisted by management committees, teams, and working groups, own and manage risks. The second line of defense is the Chief Risk Officer and the risk department, who monitor and provide advice with respect to first line risk management. The third line of defense is independent assurance performed by the Chief Internal Auditor, who reports to the Audit Committee of the Company's Board of Directors, and by the Company's internal audit department.

The Board of Directors, with the assistance of its Risk Committee, oversees management’s enterprise risk management practices. As risks must be taken to create value, the Board of Directors has approved a Risk Appetite Statement that defines the acceptable residual risk tolerances for the Company and the seven major risk types identified as having the potential to create significant adverse impacts on the Company, such as financial losses, reputational damage, legal or regulatory actions, non‐achievement of strategic objectives, diminished customer experience, and/or cultural erosion. The seven major risk types identified by the Company and addressed in the Risk Appetite Statement are strategic risk, culture risk, credit risk, liquidity risk, market risk, operational risk, and reputation risk, each of which is discussed below.

Strategic Risk   Strategic risk is the risk arising from adverse strategic or business decisions, misalignment of strategic direction with the Company’s mission and values, failure to execute strategies or tactics, or an inadequate adaptation or lack of responsiveness to industry and/or operating environment changes. Management seeks to mitigate strategic risk through strategic planning, frequent executive review of strategic plan progress, monitoring of competitors and technology, assessment of new products, new branches, and new business initiatives, customer advocacy, and crisis management planning.

Culture Risk    Culture risk is the risk arising from failed leadership and/or ineffective colleague engagement and workplace management that causes the Company to lose sight of core values and, through acts or omissions, damage the relationship-based culture which has been one of the foundations of the Company’s consistent success. Management mitigates culture risk through effective employee relations, leadership that encourages continuous improvement, cultural development and reinforcement of core values, communication of clear ethical and behavioral standards, consistent enforcement of policies and programs, discipline of misbehavior, alignment of incentives and compensation, and by promoting diversity, equity, and inclusion.

Credit Risk    Credit risk is the risk arising from the failure of a borrower or a counterparty to a contract to make payments as agreed, and includes the risks arising from inadequate collateral and mismanagement of loan concentrations. While the collateral securing loans may be sufficient in some cases to recover the amount due, in other cases the Company may experience significant credit losses which could have an adverse effect on its operating results. The Company makes assumptions and judgments about the collectability of its loan portfolio, including the creditworthiness of its borrowers and counterparties and the value of collateral for the repayment of loans. For further discussion regarding the credit risk and the credit quality of the Company’s loan portfolio, see Note 4, “Loans, Allowance for Credit Losses and Credit Quality” within the Notes to Consolidated Financial Statements included in Part I. Item 1 of this Report.

Liquidity Risk    Liquidity risk is the risk arising from the Company being unable to meet obligations when due. Liquidity risk includes the inability to access funding sources or manage fluctuations in available funding levels. Liquidity risk also results from a failure to recognize or address market condition changes that affect the ability to liquidate assets quickly with minimal value loss.

The Company’s primary sources of funds are deposits, borrowings, and the amortization, prepayment, and maturities of loans and securities. The Bank utilizes its extensive branch network to access retail customers who provide a base of in-market core deposits. These funds are principally comprised of demand deposits, interest checking accounts, savings accounts, and money market accounts. Deposit levels are greatly influenced by interest rates, economic conditions, and competitive factors.

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The Company’s primary measure of short-term liquidity is the Total Basic Surplus/Deficit as a percentage of assets. This ratio, which is an analysis of the relationship between liquid assets plus available Federal Home Loan Bank funding, less short-term liabilities relative to total assets, was within policy limits at September 30, 2021. The Total Basic Surplus/Deficit measure is affected primarily by changes in deposits, securities and short-term investments, loans, and borrowings. An increase in deposits, without a corresponding increase in nonliquid assets, will improve the Total Basic Surplus/Deficit measure, whereas, an increase in loans, with no increase in deposits, will decrease the measure. Other factors affecting the Total Basic Surplus/Deficit include Federal Home Loan Bank collateral requirements, securities portfolio changes, and the mix of deposits.

The Company seeks to increase deposits without adversely impacting its weighted average funding cost. As a result of PPP loan funding, government stimulus programs, and a customer focus on retaining liquidity, the Company has experienced significant deposit growth and a buildup of liquidity throughout the first three quarters of 2021.

The Company also maintains a variety of liquidity sources, including Federal Home Loan Bank advances, Federal Reserve borrowing capacity, and repurchase agreement lines. These funding sources serve as a contingent source of liquidity and, when profitable lending and investment opportunities exist, the Company may access them to provide the liquidity needed to grow the balance sheet. The amount and type of assets that the Company has available to pledge impacts the Company's Federal Home Loan Bank and Federal Reserve borrowing capacity. For example, a prime one-to-four family residential loan may provide 75 cents of borrowing capacity for every $1.00 pledged, whereas a pledged commercial loan may increase borrowing capacity in a lower amount. The Company’s lending decisions, therefore, can also affect its liquidity position.

The Company can also raise additional funds through the issuance of equity or unsecured debt privately or publicly and has done so in the past. Additionally, the Company is able to enter into repurchase agreements or acquire brokered deposits at its discretion. The availability and cost of equity or debt on an unsecured basis is dependent on many factors, including the Company’s financial position, the market environment, and the Company’s credit rating. The Company monitors the factors that could impact its ability to raise liquidity through these channels.

The following table depicts current and unused liquidity capacity from various sources as of the dates indicated:

Table 22 - Liquidity Sources

	September 30, 2021				December 31, 2020
	Outstanding		Additional Borrowing Capacity		Outstanding		Additional Borrowing  Capacity
	(Dollars in thousands)
Federal Home Loan Bank of Boston (1)	$	25,675	$	1,354,115	$	35,740	$	1,372,671
Federal Reserve Bank of Boston (2)	—		1,067,818		—		1,355,809
Unpledged Securities	—		1,613,818		—		716,961
Line of Credit	—		50,000		—		50,000
Long-term borrowing (3)	18,750		—		32,773		—
Junior subordinated debentures (3)	62,853		—		62,851		—
Subordinated debt (3)	49,767		—		49,696		—
Reciprocal deposits (3)	244,586		—		237,902		—
Brokered deposits (3)	6,000		—		8,538		—
	$	407,631	$	4,085,751	$	427,500	$	3,495,441

(1)Loans with a carrying value of $2.0 billion and $2.1 billion at September 30, 2021 and December 31, 2020, respectively, were pledged to the Federal Home Loan Bank of Boston resulting in this additional unused borrowing capacity.

(2)Loans with a carrying value of $1.6 billion and $1.9 billion at September 30, 2021 and December 31, 2020, respectively, were pledged to the Federal Reserve Bank of Boston resulting in this additional unused borrowing capacity.

(3)The additional borrowing capacity has not been assessed for these categories.

In addition to customary operational liquidity practices, the Board of Directors and management recognize the need to establish reasonable guidelines to manage a heightened liquidity risk environment. Catalysts for elevated liquidity risk can be Company-specific issues and/or systemic industry-wide events. It is therefore the responsibility of management to institute systems and controls designed to provide advanced detection of potentially significant funding shortages, establish methods for assessing and monitoring risk levels, and institute responses that may alleviate or circumvent a potential liquidity crisis. Management has established a Liquidity Contingency Plan to provide a framework to detect potential liquidity problems and

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appropriately address them in a timely manner. In a period of perceived heightened liquidity risk, the Liquidity Contingency Plan provides for the establishment of a Liquidity Crisis Task Force to monitor the potential for a liquidity crisis and establish and execute an appropriate response.

Market Risk Market risk is the risk arising from changes in interest rates and the value of investments due to market conditions or other external factors or events. The Company’s primary market risk exposure is interest rate risk.

Interest rate risk is the sensitivity of income to changes in interest rates. Interest rate changes, as well as fluctuations in the level and duration of assets and liabilities, affect net interest income, the Company’s primary source of revenue. Interest rate risk arises directly from the Company’s core banking activities. In addition to directly impacting net interest income, changes in the level of interest rates can also affect the amount of loans originated, the timing of cash flows on loans and securities, and the fair value of securities and derivatives, and have other effects.

Management strives to control interest rate risk within limits approved by the Board of Directors that reflect the Company’s tolerance for interest rate risk over short-term and long-term horizons. The Company attempts to manage interest rate risk by identifying, quantifying, and, where appropriate, hedging exposure. If assets and liabilities do not re-price simultaneously and in equal volume, the potential for interest rate exposure exists. It is the Company's objective to maintain stability in the growth of net interest income through the maintenance of an appropriate mix of interest-earning assets and interest-bearing liabilities and, when necessary within limits management deems prudent, through the use of off-balance sheet hedging instruments such as interest rate swaps, floors, and caps.

The Company quantifies its interest rate exposures using net interest income simulation models, as well as simpler gap analysis, and an Economic Value of Equity analysis. Key assumptions in these analyses relate to behavior of interest rates and behavior of the Company’s deposit and loan customers. The most material assumptions relate to the prepayment of mortgage assets (including mortgage loans and mortgage-backed securities) and the life and sensitivity of non-maturity deposits (e.g., demand deposit, negotiable order of withdrawal, savings, and money market accounts). In the case of prepayment of mortgage assets, assumptions are derived from published dealer median prepayment estimates for comparable mortgage loans. The risk of prepayment tends to increase when interest rates fall. Since future prepayment behavior of loan customers is uncertain, interest rate sensitivity of loans cannot be determined with precision and actual behavior may differ from assumptions to a significant degree.

Based upon the net interest income simulation models, the Company currently forecasts that assets are anticipated to re-price faster than liabilities. As a result, net interest income will be positively impacted as market rates increase and negatively impacted if market rates decrease. The Company runs several scenarios to quantify and effectively assist in managing interest rate risk, including instantaneous parallel shifts in market rates as well as gradual (12-24 months) shifts in market rates, and may also include other alternative scenarios as management deems necessary given the interest rate environment.

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The results of all scenarios and the impact to net interest income are outlined in the table below:

Table 23 - Interest Rate Sensitivity

	September 30
	2021				2020
	Year 1		Year 2		Year 1		Year 2
Parallel rate shocks (basis points)
-100	(3.4)	%	(9.8)	%	(0.8)	%	(9.9)	%
+100	8.4	%	9.6	%	6.0	%	1.6	%
+200	18.0	%	22.8	%	12.5	%	11.0	%
+300	27.9	%	36.4	%	19.4	%	20.5	%
+400	37.5	%	49.5	%	25.9	%	29.5	%
Gradual rate shifts (basis points)
-100 over 12 months	(1.4)	%	(8.0)	%	0.1	%	(9.3)	%
+200 over 12 months	8.6	%	20.3	%	5.8	%	8.5	%
+400 over 24 months	8.6	%	31.6	%	5.8	%	15.4	%
Alternative scenarios
Yield Curve Twist (1)	n/a		n/a		1.6	%	2.9	%
Flat up 200 basis points scenario	8.0	%	17.8		n/a		n/a

(1)In the yield curve twist scenario, rates increase 200 basis points over a two year horizon. The parallel shift occurs faster on the long end of the curve than it does on the short end, creating a temporary increase in the steepness of the curve during the interim period of the twist.

The results depicted in the table above are dependent on material assumptions. For instance, asymmetrical rate behavior can have a material impact on the simulation results. If competition for deposits prompts the Company to raise rates on those liabilities more quickly than is assumed in the simulation analysis without a corresponding increase in asset yields, net interest income would be negatively impacted. Alternatively, if the Company is able to lag increases in deposit rates as loans re-price upward, net interest income would be positively impacted.

The most significant market factors affecting the Company’s net interest income during the nine months ended September 30, 2021 were the shape of the U.S. Government securities and interest rate swap yield curve, the U.S. prime interest rate and LIBOR rates, and the interest rates being offered on long-term fixed rate loans. The full economic impact of the COVID-19 pandemic on these factors remains uncertain.

The Company manages the interest rate risk inherent in both its loan and borrowing portfolios by using interest rate swap agreements and interest rate caps and floors. An interest rate swap is an agreement in which one party agrees to pay a floating rate of interest on a notional principal amount in exchange for receiving a fixed rate of interest on the same notional amount for a predetermined period of time from the other party. Interest rate caps and floors are agreements where one party agrees to pay a floating rate of interest on a notional principal amount for a predetermined period of time to a second party if certain market interest rate thresholds are realized. While interest is paid or received in swap, cap, and floors agreements, the notional principal amount is not actually exchanged. The Company may also manage the interest rate risk inherent in its mortgage banking operations by entering into forward sales contracts under which the Company agrees to deliver whole mortgage loans to various investors. See Note 6, “Derivative and Hedging Activities” within the Notes to Consolidated Financial Statements included in Part I. Item 1 of this Report for additional information regarding the Company’s derivative financial instruments.

The Company’s earnings are not directly or materially impacted by movements in foreign currency rates or commodity prices. Movements in equity prices may have a modest impact on earnings by affecting the volume of activity or the amount of fees from investment-related business lines. See Note 3, “Securities” within the Notes to Consolidated Financial Statements included in Part I. Item 1 of this Report.

There were no material changes in off-balance sheet financial instruments during the three months ended September 30, 2021. See Note 6, “Derivative and Hedging Activities” and Note 10, "Commitments and Contingencies" within the Notes to

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Consolidated Financial Statements included in Part I. of Item 1 of this Report for more information relating to the Company's other off-balance sheet financial instruments.

Operational Risk    Operational risk is the risk arising from human error or misconduct, transaction errors or delays, inadequate or failed internal systems or processes, data unavailability, loss, or poor quality, or adverse external events. Operational risk includes business resiliency risk, consumer compliance risk, data governance risk, fraud risk, information security risk, information technology risk, legal risk, model risk, regulatory compliance risk, and third party vendor risk. Potential operational risk exposure exists throughout the Company. The continued effectiveness of colleagues, technical systems, operational infrastructure, and relationships with key third party service providers are integral to mitigating operational risk, and any shortcomings subject the Company to risks that vary in size, scale and scope. Operational risks include operational or technical failures, unlawful tampering with technical systems, cyber security, terrorist activities, ineffectiveness or exposure due to interruption in third party support, as well as the loss of key individuals or a failure of key individuals to perform properly.

Reputation Risk Reputational risk is the risk arising from negative public opinion of the Company and the Bank. Management seeks to mitigate reputation risk through actions that include a structured process of customer complaint resolution and ongoing reputational monitoring.

Contractual Obligations, Commitments, Contingencies, and Off-Balance Sheet Financial Information

Off-Balance Sheet Arrangements There were no material changes in off-balance sheet financial instruments during the three months ended September 30, 2021.

See Note 6, "Derivative and Hedging Activities" and Note 10, "Commitments and Contingencies" within the Notes to Consolidated Financial Statements included in Part I. Item 1 of this Report for more information relating to the Company's other off-balance sheet financial instruments.

Contractual Obligations, Commitments, and Contingencies There were no material changes in contractual obligations, commitments, or contingencies during the three months ended September 30, 2021.

Refer to the 2020 Form 10-K for a complete table of contractual obligations, commitments and contingencies.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Information required by this Item 3 is included in the "Risk Management" section of Part I. Item 2 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Report and is incorporated herein by reference.

Item 4. Controls and Procedures

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures.  The Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer along with the Company’s Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures, as such term is defined under Rules 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended. Based upon that evaluation, the Company’s Chief Executive Officer along with the Company’s Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by this quarterly report.

Changes in Internal Control over Financial Reporting. There were no changes in the Company's internal control over financial reporting that occurred during the third quarter of 2021 that have materially affected or are reasonably likely to materially affect the Company’s internal control over financial reporting. The Company has not experienced any material impact to the Company’s internal control over financial reporting due to the fact that most of the Company’s employees responsible for financial reporting are working remotely during the COVID-19 pandemic. The Company is continually monitoring and assessing the impact of the COVID-19 pandemic on the Company’s internal control over financial reporting to minimize any impact on the design and operating effectiveness.

PART II. OTHER INFORMATION

Item  1. Legal Proceedings

93

At September 30, 2021, the Bank was involved in pending lawsuits that arose in the ordinary course of business. Management has reviewed these pending lawsuits with legal counsel, including those lawsuits filed in connection with the Meridian acquisition as described in the Company's Form 8-K filed in July 27, 2021, and has taken into consideration the view of counsel as to their outcome. In the opinion of management, the final disposition of pending lawsuits is not expected to have a material adverse effect on the Company’s financial position or results of operations.

Item 1A. Risk Factors

    The section titled Risk Factors in Part I, Item 1A of the 2020 Form 10-K includes a discussion of the material risks and uncertainties the Company faces, any one or more of which could have a material adverse effect on the Company's business, results of operations, or financial condition (including capital and liquidity). The information presented below provides an update to, and should be read in conjunction with, the risk factors and other information contained in the 2020 Form 10-K as well as any updated to our risk factors included in subsequent Quarterly Reports on Form 10-Q.

    Except as presented below, there have been no material changes to the risk factors described in the 2020 Form 10-K.

Failure to complete the acquisition of Meridian Bancorp, Inc. for any reason could negatively impact future business and financial results of the Company.

On April 22, 2021, the Company announced the entry into a definitive agreement (the “Merger Agreement”) under which the Company will acquire Meridian Bancorp, Inc. (“Meridian”) and Rockland Trust Company will acquire East Boston Savings Bank (the “Merger”). Completion of the Merger is subject to customary closing conditions, including, among others, (i) authorization for listing on the Nasdaq Stock Market of the shares of the Company’s common stock to be issued in the Merger, subject to official notice of issuance, (ii) the receipt of all required regulatory approvals, including the approval of the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Massachusetts Commissioner of Banks, the Massachusetts Housing Partnership Fund and the Depositors Insurance Fund, without the imposition of a burdensome condition, (iv) the effectiveness of the registration statement on Form S-4 to be filed with the Securities and Exchange Commission by the Company in connection with the transactions contemplated by the Merger Agreement and (v) the absence of any order, injunction, decree or other legal restraint preventing the completion of the transactions contemplated by the Merger Agreement or making them illegal. Each party’s obligation to complete the Merger is also subject to additional customary conditions, including, subject to certain exceptions, the accuracy of the representations and warranties of the other party and the performance in all material respects by each party of its obligations under the Merger Agreement.

The Merger Agreement provides certain termination rights for both the Company and Meridian.

If the Merger is not completed for any reason, the business of the Company may be adversely affected and, without realizing any of the benefits of having completed the Merger, the Company could be subject to a number of risks. In this regard, the Company faces risks and uncertainties due both to the pendency of the Merger and the potential failure to consummate the merger, including:

•the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement;

•the risk that the necessary regulatory approvals may not be obtained or may be obtained subject to conditions that are not anticipated;

•delays in closing the Merger or other risks that any of the closing conditions to the Merger may not be satisfied in a timely manner;

•the diversion of management’s time and resources from ongoing business operations due to issues relating to the Merger;

•material adverse changes in the Company’s or Meridian’s operations or earnings; and

•the outcome of litigation in connection with the Merger.

In addition, the Company has incurred and will incur substantial expenses in connection with the negotiation and completion of the transactions contemplated by the Merger Agreement. If the Merger is not consummated, the Company could have to recognize these and other expenses without realized the expected benefits of the Merger.

The acquisition of Meridian may be more difficult, costly or time consuming than expected, and the expected benefits of the merger may not be realized.

94

Cost or difficulties relating to integration matters might be greater than expected and the Company may be unable to realize expected cost savings and synergies from the Merger in the amounts and in the timeframe anticipated. For example, it is possible that the integration process could result in the loss of key employees, the disruption of the Company’s ongoing business or inconsistencies in standards, controls, procedures and policies that adversely affect the combined bank’s ability to maintain relationships with customers and employees or to achieve the anticipated benefits and cost savings of the Merger. The loss of key employees could adversely affect the Company’s ability to successfully conduct its business in the markets in which Meridian now operates, which could have an adverse effect on the Company’s financial results and the value of its common stock. The Company’s belief that cost savings and revenue enhancements are achievable is a forward-looking statement that is inherently uncertain. The combined company’s actual cost savings and revenue enhancements, if any, cannot be quantified at this time. Any actual cost savings or revenue enhancements will depend on future expense levels and operating results, the timing of certain events and general industry, regulatory and business conditions. Many of these events will be beyond the control of the combined company.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a) Not applicable.

(b) Not applicable.

(c) The following table sets forth information regarding the Company’s repurchases of its common stock during the three months ended September 30, 2021:

	Issuer Purchases of Equity Securities
	Total Number of Shares Purchased (1)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan or Program	Maximum Number of Shares That May Yet Be Purchased Under the Plan or Program
Period
July 1 to July 31, 2021	—	$	—	—	—
August 1 to August 31, 2021	—	$	—	—	—
September 1 to September 30, 2021	43	$	70.81	—	—
Total	43	$	70.81	—

(1)Reflects shares withheld in connection with the exercise and/or vesting of equity compensation grants to satisfy related tax withholding obligations.

Item 3. Defaults Upon Senior Securities - None.

Item 4. Mine Safety Disclosures - Not Applicable.

Item 5. Other Information - None.

Item 6. Exhibits

Exhibit Index

No. Exhibit

31.1	Section 302 Certification of Sarbanes-Oxley Act of 2002 is attached hereto.*
31.2	Section 302 Certification of Sarbanes-Oxley Act of 2002 is attached hereto.*
32.1	Section 906 Certification of Sarbanes-Oxley Act of 2002 is attached hereto.+
32.2	Section 906 Certification of Sarbanes-Oxley Act of 2002 is attached hereto.+
99.1	Notice to Shareholders of Dismissal of Derivative Action
101	The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.*
104	Cover page interactive data file (formatted as inline XBRL and contained in Exhibit 101).*

* Filed herewith

+ Furnished herewith

95

96

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

INDEPENDENT BANK CORP.

(registrant)

November 4, 2021	/s/ Christopher Oddleifson
	Christopher Oddleifson President and Chief Executive Officer (Principal Executive Officer)

November 4, 2021	/s/ Mark J. Ruggiero
	Mark J. Ruggiero Chief Financial Officer (Principal Financial Officer)

97

EX-31.1

Exhibit 31.1

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

PURSUANT TO RULE 13A-14 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Christopher Oddleifson, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Independent Bank Corp.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 4, 2021

/s/ CHRISTOPHER ODDLEIFSON

Christopher Oddleifson

Chief Executive Officer/President

EX-31.2

Exhibit 31.2

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER

PURSUANT TO RULE 13A-14 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Mark J. Ruggiero, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Independent Bank Corp.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 4, 2021

/s/  MARK J. RUGGIERO

Mark J. Ruggiero

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Independent Bank Corp. (the “Company”) on Form 10-Q for the period ended September 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certifies, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the undersigned’s best knowledge and belief:

(a)the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 as amended; and

(b)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: November 4, 2021

Independent Bank Corp.

(“Company”)

/s/ CHRISTOPHER ODDLEIFSON

Christopher Oddleifson

Chief Executive Officer/President

A signed original of this written statement required by Section 906 has been provided to Independent Bank Corp. and will be retained by Independent Bank Corp. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Independent Bank Corp. (the “Company”) on Form 10-Q for the period ended September 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certifies, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the undersigned’s best knowledge and belief:

(a)the Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 as amended; and

(b)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: November 4, 2021

Independent Bank Corp.

(“Company”)

/s/  MARK J. RUGGIERO

Mark J. Ruggiero

Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to Independent Bank Corp. and will be retained by Independent Bank Corp. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-99.1

EXHIBIT 99.1

As previously disclosed, a derivative action was filed by a purported shareholder of the Company against the Company and its board of directors in connection with the Company’s Agreement and Plan of Merger with Meridian Bancorp, Inc.: Drulias v. Abelli, et al., Civil Action No. 2183CV00518, filed in Massachusetts Superior Court, Plymouth County, on June 29, 2021. The Company and Meridian Bancorp Inc. voluntarily made mooting supplemental disclosures relating to the transaction in Form 8-Ks filed on July 27, 2021, following which the plaintiff in the derivative action filed a motion for voluntary dismissal without prejudice to any other shareholder on August 5, 2021 which was endorsed by the Court on August 13, 2021. The dismissal does not affect the rights of any other shareholder. This statement operates as notice of the dismissal to shareholders as required for derivative suits under Massachusetts law.

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2021	Nov. 04, 2021	Jun. 30, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Entity Information [Line Items]
Document Transition Report	false
Common Stock, Shares, Outstanding	33,043,812			32,965,692
City Area Code	(781)
Entity Incorporation, State or Country Code	MA
Entity File Number	1-9047
Document Quarterly Report	true
Entity Registrant Name	Independent Bank Corp.
Entity Tax Identification Number	04-2870273
Entity Central Index Key	0000776901
Document Type	10-Q
Document Period End Date	Sep. 30, 2021
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		33,049,880
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Local Phone Number	878-6100
Entity Address, Address Line One	2036 Washington Street,
Entity Address, City or Town	Hanover,
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02339
Entity Shell Company	false
NASDAQ/NGS (GLOBAL SELECT MARKET) [Member]
Entity Information [Line Items]
Security Exchange Name	NASDAQ
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	INDB
Common Class A [Member]
Entity Information [Line Items]
Common Stock, Shares, Outstanding	33,043,812		33,037,859	32,965,692	32,955,547	32,942,110	34,377,388
Mailing Address [Member]
Entity Information [Line Items]
Entity Address, Address Line One	288 Union Street,
Entity Address, City or Town	Rockland,
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02370

XML

Consolidated Balance Sheets (Unaudited) - USD ($)		Sep. 30, 2021		Dec. 31, 2020
Assets
Cash and due from banks		$ 138,148,000		$ 169,460,000
Interest-earning deposits with banks		1,869,683,000		1,127,176,000
Securities
Trading		3,504,000		2,838,000
Equity Securities, FV-NI		22,794,000		22,107,000
Debt Securities, Available-for-sale		1,427,210,000		412,860,000
Held to maturity (fair value $875,306 and $752,177)		865,249,000		724,512,000
Total securities		2,318,757,000		1,162,317,000
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group		33,553,000		58,104,000
Loans
Total loans		8,808,013,000	[1]	9,392,866,000
Less: allowance for credit losses		(92,246,000)	[2]	(113,392,000)
Net loans		8,715,767,000		9,279,474,000
Federal Home Loan Bank stock		8,666,000		10,250,000
Bank premises and equipment, net		123,528,000		116,393,000
Goodwill		506,206,000		506,206,000
Other intangible assets		19,055,000		23,107,000
Cash surrender value of life insurance policies		244,573,000		200,525,000
Other assets		555,375,000		551,289,000
Total assets		14,533,311,000		13,204,301,000
Deposits
Noninterest-bearing demand deposits		4,590,492,000		3,762,306,000
Savings and interest checking accounts		4,484,208,000		4,047,332,000
Money market		2,399,878,000		2,232,903,000
Time certificates of deposit of $100,000 and over		412,129,000		525,424,000
Other time certificates of deposits		373,433,000		425,205,000
Total deposits		12,260,140,000		10,993,170,000
Borrowings
Federal Home Loan Bank borrowings		25,675,000		35,740,000
Long-term Debt		18,750,000		32,773,000
Junior Subordinated Notes		62,853,000		62,851,000
Subordinated Debt		49,767,000		49,696,000
Total borrowings		157,045,000		181,060,000
Other liabilities		360,172,000		327,386,000
Total liabilities		12,777,357,000		11,501,616,000
Commitments and contingencies		0		0
Stockholders' equity
Preferred stock, $0.01 par value, authorized: 1,000,000 shares, outstanding: none		0		0
Common stock, $0.01 par value, authorized: 75,000,000 shares, issued and outstanding: 33,043,812 shares at September 30, 2021 and 32,965,692 shares at December 31, 2020 (includes 135,485 and 135,205 shares of unvested participating restricted stock awards, respectively)		329,000		328,000
Value of shares held in rabbi trust at cost: 84,207 shares at September 30, 2021 and 84,126 shares at December 31, 2020		(3,157,000)		(3,066,000)
Deferred compensation and other retirement benefit obligations		3,157,000		3,066,000
Additional paid in capital		949,316,000		945,638,000
Retained earnings		787,742,000		716,024,000
Accumulated other comprehensive income, net of tax		18,567,000		40,695,000
Total stockholders’ equity		1,755,954,000		1,702,685,000
Total liabilities and stockholders' equity		14,533,311,000		13,204,301,000
Debt Securities, Available-for-sale, Amortized Cost		1,425,392,000		395,453,000
Debt Securities, Held-to-maturity, Fair Value		875,306,000		752,177,000
Interest-bearing Deposit Liabilities		$ 100,000		$ 100,000
Preferred Stock, Shares Authorized		$ 0.01		$ 0.01
Preferred Stock, Shares Authorized		1,000,000		1,000,000
Preferred Stock, Shares Outstanding		0		0
Common Stock, Par or Stated Value Per Share		$ 0.01		$ 0.01
Common Stock, Shares Authorized		75,000,000		75,000,000
Common Stock, Shares, Issued		33,043,812		32,965,692
Common Stock, Shares, Outstanding		33,043,812		32,965,692
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number		135,485		135,205
Shares Held in Rabbi Trust at Cost		84,207		84,126
Common Class A [Member]
Stockholders' equity
Common Stock, Shares, Outstanding		33,043,812		32,965,692
Long-term Debt [Member]
Stockholders' equity
Unamortized Debt Issuance Expense		$ 0		$ 40,000
Subordinated Debt [Member]
Stockholders' equity
Unamortized Debt Issuance Expense		233,000		304,000
Junior Subordinated Debt [Member]
Stockholders' equity
Unamortized Debt Issuance Expense		35,000		37,000
Commercial And Industrial [Member]
Loans
Financing Receivable, before Allowance for Credit Loss		1,640,709,000		2,103,152,000
Total loans		1,640,709,000	[1]	2,103,152,000
Less: allowance for credit losses	[2]	(16,014,000)
Commercial Real Estate [Member]
Loans
Financing Receivable, before Allowance for Credit Loss		4,221,259,000		4,173,927,000
Total loans		4,221,259,000	[1]	4,173,927,000
Less: allowance for credit losses	[2]	(37,798,000)
Construction Loans [Member]
Loans
Financing Receivable, before Allowance for Credit Loss		515,415,000		553,929,000
Total loans		515,415,000	[1]	553,929,000
Less: allowance for credit losses	[2]	(4,468,000)
Small Business [Member]
Loans
Financing Receivable, before Allowance for Credit Loss		184,138,000		175,023,000
Total loans		184,138,000	[1]	175,023,000
Less: allowance for credit losses	[2]	(3,667,000)
Residential Real Estate [Member]
Loans
Financing Receivable, before Allowance for Credit Loss		1,222,849,000		1,296,183,000
Total loans		1,222,849,000	[1]	1,296,183,000
Less: allowance for credit losses	[2]	(11,047,000)
Home Equity Loan [Member]
Loans
Total loans	[1]	1,000,468,000
Consumer Portfolio Segment [Member]
Loans
Financing Receivable, before Allowance for Credit Loss		23,175,000		21,862,000
Total loans	[3]	23,175,000		21,862,000
Less: allowance for credit losses	[2]	(384,000)
Senior Lien [Member] | Home Equity Loan [Member]
Loans
Financing Receivable, before Allowance for Credit Loss		592,564,000		633,142,000
Junior Lien [Member] | Home Equity Loan [Member]
Loans
Financing Receivable, before Allowance for Credit Loss		$ 407,904,000		$ 435,648,000

[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] Balances of accrued interest receivable excluded from amortized cost and the calculation of allowance for credit losses amounted to $29.1 million and $36.7 million as of September 30, 2021 and September 30, 2020, respectively.

[3] Other consumer portfolio is inclusive of deposit account overdrafts recorded as loan balances.

XML

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Time certificates of deposit least amount	$ 100,000	$ 100,000
Held to Maturity, Fair Value, Total	875,306,000	752,177,000
Debt Securities, Available-for-sale, Amortized Cost	$ 1,425,392,000	$ 395,453,000
Preferred Stock, par value	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	1,000,000	1,000,000
Preferred Stock, shares outstanding	0	0
Common Stock, par value	$ 0.01	$ 0.01
Common Stock, shares authorized	75,000,000	75,000,000
Common Stock, Shares, Outstanding	33,043,812	32,965,692
Common Stock, unvested restricted Stock awards	135,485	135,205
Shares Held in Rabbi Trust	84,207	84,126
Common Stock Outstanding
Common Stock, Shares, Outstanding	33,043,812	32,965,692
Subordinated Debt [Member]
Unamortized Debt Issuance Expense	$ 233,000	$ 304,000
Long-term Debt [Member]
Unamortized Debt Issuance Expense	$ 0	$ 40,000

XML

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Advertising Expense	$ 884	$ 1,215	$ 2,949	$ 3,107
Professional Fees	1,560	1,305	5,443	4,244
Amortization of Intangible Assets	1,310	1,449	4,037	4,704
Debit card expense	1,347	1,105	3,693	3,312
Loss on Contract Termination	0	684	0	684
Business Combination, Acquisition Related Costs	1,943	0	3,674	0
Software Maintenance	2,018	1,753	5,903	5,218
Interest income
Interest and fees on loans	84,212	90,112	265,409	280,768
Interest Income, Securities, Operating, Taxable	7,792	7,218	21,603	23,006
Nontaxable interest and dividends on securities	4	9	14	27
Interest on loans held for sale	193	326	675	917
Interest on federal funds sold and short-term investments	815	254	1,654	546
Total interest and dividend income	93,016	97,919	289,355	305,264
Interest expense
Interest on deposits	1,633	5,432	6,361	23,351
Interest on borrowings	1,292	1,604	3,965	5,628
Total interest expense	2,925	7,036	10,326	28,979
Net interest income	90,091	90,883	279,029	276,285
Provision for credit losses	(10,000)	7,500	(17,500)	52,500
Net interest income after provision for credit losses	100,091	83,383	296,529	223,785
Noninterest income
Deposit account fees	4,298	3,428	11,704	11,227
Interchange and ATM fees	3,441	3,044	9,229	13,154
Investment Banking, Advisory, Brokerage, and Underwriting Fees and Commissions	9,174	7,571	26,350	21,696
Mortgage banking income	2,825	7,704	11,270	13,570
Bank Owned Life Insurance Income	1,596	1,314	4,508	3,902
Gain Realized on Life Insurance Policies	0	0	(258)	(692)
Loan level derivative income	586	2,457	875	8,918
Debt and Equity Securities, Unrealized Gain (Loss)	0	308	723	1,694
Other noninterest income	4,537	3,521	11,753	9,119
Total noninterest income	26,457	29,347	76,670	83,972
Noninterest expenses
Salaries and employee benefits	42,235	38,409	124,759	113,027
Occupancy and equipment expenses	8,564	9,273	26,543	27,863
Data processing & facilities management	1,673	1,567	5,024	4,684
FDIC assessment	980	1,034	2,805	1,537
Professional Fees	1,560	1,305	5,443	4,244
Amortization of Intangible Assets	1,310	1,449	4,037	4,704
Debit card expense	1,347	1,105	3,693	3,312
Business Combination, Acquisition Related Costs	1,943	0	3,674	0
Software Maintenance	2,018	1,753	5,903	5,218
Other noninterest expenses	9,905	8,864	30,573	31,725
Total noninterest expenses	72,419	66,658	215,403	200,105
Income before income taxes	54,129	46,072	157,796	107,652
Current Federal, State and Local, Tax Expense (Benefit)	14,122	11,199	38,506	21,126
Net income	$ 40,007	$ 34,873	$ 119,290	$ 86,526
Basic earnings per share (in dollars per share)	$ 1.21	$ 1.06	$ 3.61	$ 2.59
Diluted earnings per share (in dollars per share)	$ 1.21	$ 1.06	$ 3.61	$ 2.59
Weighted average common shares (basic) (in shares)	33,043,716	32,951,918	33,024,386	33,358,879
Common shares equivalents (in shares)	15,554	24,758	18,238	27,871
Weighted average common shares (diluted) (in shares)	33,059,270	32,976,676	33,042,624	33,386,750
Advertising Expense	$ 884	$ 1,215	$ 2,949	$ 3,107
Retained Earnings [Member]
Noninterest expenses
Net income	$ 40,007	$ 34,873	$ 119,290	$ 86,526
Cash dividends declared per common share (in dollars per share)	$ 0.48	$ 0.46	$ 1.44	$ 1.38

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Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income		$ 40,007	$ 34,873	$ 119,290	$ 86,526
Other comprehensive income (loss), net of tax
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax		(7,897)	(709)	(11,878)	10,333
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax		(3,383)	(2,729)	(11,559)	20,452
Net change in other comprehensive income for defined benefit postretirement plans	[1]	280	225	1,309	(322)
Total other comprehensive income (loss)		(11,000)	(3,213)	(22,128)	30,463
Total comprehensive income		$ 29,007	$ 31,660	$ 97,162	$ 116,989

[1] The following tables present a reconciliation of the changes in the components of other comprehensive income (loss) for the periods indicated, including the amount of income tax (expense) benefit allocated to each component of other comprehensive income (loss): Three Months Ended
September 30, 2021Nine Months Ended
September 30, 2021Pre Tax
AmountTax (Expense)
BenefitAfter Tax
AmountPre Tax
AmountTax (Expense)
BenefitAfter Tax
Amount (Dollars in thousands)Change in fair value of securities available for sale$(10,337)$2,440 $(7,897)$(15,589)$3,711 $(11,878)Less: net security losses reclassified into other noninterest expense— — — — — — Net change in fair value of securities available for sale(10,337)2,440 (7,897)(15,589)3,711 (11,878)Change in fair value of cash flow hedges84 (23)61 (2,214)624 (1,590)Less: net cash flow hedge gains reclassified into interest income or interest expense 4,791 (1,347)3,444 13,869 (3,900)9,969 Net change in fair value of cash flow hedges(4,707)1,324 (3,383)(16,083)4,524 (11,559)Net unamortized gain related to defined benefit pension and other postretirement adjustments arising during the period— — — 653 (184)469 Amortization of net actuarial losses346 (97)249 1,037 (291)746 Amortization of net prior service costs44 (13)31 131 (37)94 Net change in other comprehensive income for defined benefit postretirement plans (1)390 (110)280 1,821 (512)1,309 Total other comprehensive loss$(14,654)$3,654 $(11,000)$(29,851)$7,723 $(22,128)  Three Months Ended
September 30, 2020Nine Months Ended
September 30, 2020 Pre Tax
AmountTax (Expense)
BenefitAfter Tax
AmountPre Tax
AmountTax (Expense)
BenefitAfter Tax
Amount (Dollars in thousands)Change in fair value of securities available for sale$(857)$148 $(709)$13,598 $(3,265)$10,333 Less: net security losses reclassified into other noninterest expense— — — — — — Net change in fair value of securities available for sale(857)148 (709)13,598 (3,265)10,333 Change in fair value of cash flow hedges(143)41 (102)37,674 (10,597)27,077 Less: net cash flow hedge gains reclassified into interest income or interest expense 4,339 (1,220)3,119 9,901 (2,784)7,117 Less: loss on termination of hedge reclassified into noninterest expense(684)192 (492)(684)192 (492)Net change in fair value of cash flow hedges(3,798)1,069 (2,729)28,457 (8,005)20,452 Net unamortized loss related to defined benefit pension and other postretirement adjustments arising during the period(2)1 (1)(1,392)392 (1,000)Amortization of net actuarial losses245 (69)176 736 (207)529 Amortization of net prior service costs69 (19)50 207 (58)149 Net change in other comprehensive income for defined benefit postretirement plans (1)312 (87)225 (449)127 (322)Total other comprehensive income (loss)$(4,343)$1,130 $(3,213)$41,606 $(11,143)$30,463 
(1)The amortization of prior service costs is included in the computation of net periodic pension cost as disclosed in Note 15 "Employee Benefit Plans" within the Notes to the Consolidated Financial Statements included in Item 8 of the Company's 2020 Form 10-K.

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Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)		Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock Outstanding	Common Stock	Value of Shares Held in Rabbi Trust at Cost	Deferred Compensation and Other Retirement Benefit Obligations	Additional Paid in Capital	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Income/(Loss)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Shares, Outstanding				34,377,388
Net income		$ 86,526,000							$ 86,526,000
Other comprehensive income		30,463,000									$ 30,463,000
Cash dividends declared per common share (in dollars per share)									$ 1.38
Common dividend declared		(45,715,000)							$ (45,715,000)
Proceeds from exercise of stock options, net of cash paid				5,873
Proceeds from exercise of stock options, net of cash paid		114,000			$ 0			$ 114,000
Stock based compensation		3,297,000						3,297,000
Restricted stock awards issued, net of awards surrendered				49,249
Restricted stock awards issued, net of awards surrendered		(1,186,000)			1,000			(1,187,000)
Shares issued under direct stock purchase plan				23,037
Shares issued under direct stock purchase plan		1,620,000			0			1,620,000
Stock Repurchased During Period, Shares				(1,500,000)
Stock Repurchased During Period, Value		(95,091,000)			(15,000)			(95,076,000)
Increase (Decrease) in Deferred Compensation and Other Retirement Benefits						$ 23,000	$ (23,000)
Increase (Decrease) in Deferred Compensation		0
Period End Balance at Sep. 30, 2020		1,689,724,000			328,000	(4,712,000)	4,712,000	944,218,000	696,546,000		48,632,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Financing Receivable, Allowance for Credit Losses, Effect of Change in Method, net of tax.		817,000
Financing Receivable, Allowance for Credit Losses, Effect of Change in Method	[1]	(1,137,000)
Off-Balance Sheet, Credit Loss, Liability, Change in Method, Credit Loss Expense (Reversal)		(1,000,000)
Off-Balance Sheet, Credit Loss, Liability, Change in Method, Credit Loss Expense (Reversal), net of tax.		736,000
Common Stock, Shares, Outstanding				32,942,110
Net income		34,873,000							$ 34,873,000
Other comprehensive income		(3,213,000)									(3,213,000)
Cash dividends declared per common share (in dollars per share)									$ 0.46
Common dividend declared		(15,161,000)							$ (15,161,000)
Proceeds from exercise of stock options, net of cash paid				5,000
Stock Repurchased During Period, Value, as a result of Stock Options Exercised		140,000						140,000
Stock based compensation		868,000						868,000
Restricted stock awards issued, net of awards surrendered				(43)
Restricted stock awards issued, net of awards surrendered		(3,000)						(3,000)
Shares issued under direct stock purchase plan				8,480
Shares issued under direct stock purchase plan		528,000						528,000
Increase (Decrease) in Deferred Compensation and Other Retirement Benefits						(63,000)	63,000
Increase (Decrease) in Deferred Compensation		0
Period End Balance at Sep. 30, 2020		$ 1,689,724,000			328,000	(4,712,000)	4,712,000	944,218,000	696,546,000		48,632,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Shares, Outstanding				32,955,547
Common Stock, Shares, Outstanding		32,965,692		32,965,692
Cumulative Effect of New Accounting Principle in Period of Adoption (Deprecated 2020-01-31)	[2]		$ 1,553,000							$ 1,553,000
Net income		$ 119,290,000							$ 119,290,000
Other comprehensive income		(22,128,000)									(22,128,000)
Cash dividends declared per common share (in dollars per share)									$ 1.44
Common dividend declared		(47,572,000)							$ (47,572,000)
Proceeds from exercise of stock options, net of cash paid				4,744
Stock Repurchased During Period, Value, as a result of Stock Options Exercised		57,000						57,000
Stock based compensation		3,467,000						3,467,000
Restricted stock awards issued, net of awards surrendered				53,795
Restricted stock awards issued, net of awards surrendered		(1,246,000)			1,000			(1,247,000)
Shares issued under direct stock purchase plan				19,581
Shares issued under direct stock purchase plan		1,515,000						1,515,000
Increase (Decrease) in Deferred Compensation and Other Retirement Benefits						(91,000)	91,000
Increase (Decrease) in Deferred Compensation		0
Period End Balance at Sep. 30, 2021		1,755,954,000			329,000	(3,157,000)	3,157,000	949,316,000	787,742,000		18,567,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Shares, Outstanding				33,037,859
Net income		40,007,000							$ 40,007,000
Other comprehensive income		(11,000,000)									(11,000,000)
Cash dividends declared per common share (in dollars per share)									$ 0.48
Common dividend declared		(15,861,000)							$ (15,861,000)
Stock based compensation		707,000						707,000
Restricted stock awards issued, net of awards surrendered				(763)
Restricted stock awards issued, net of awards surrendered		(3,000)						(3,000)
Shares issued under direct stock purchase plan				6,716
Shares issued under direct stock purchase plan		482,000						482,000
Increase (Decrease) in Deferred Compensation and Other Retirement Benefits						(41,000)	41,000
Increase (Decrease) in Deferred Compensation		0
Period End Balance at Sep. 30, 2021		$ 1,755,954,000			$ 329,000	$ (3,157,000)	$ 3,157,000	$ 949,316,000	$ 787,742,000		$ 18,567,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common Stock, Shares, Outstanding		33,043,812		33,043,812

[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 cumulative impact on retained earnings pursuant to the Company's adoption of Accounting Standards Update 2016-13. The adjustment presented includes $1.1 million ($817,000, net of tax) attributable to the change in accounting methodology for estimating the allowance for credit losses and $1.0 million ($736,000, net of tax) related to the reserve for unfunded commitments resulting from the Company's adoption of the standard. Amount shown in the table above is presented net of tax.

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Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Common Stock, Shares, Outstanding	33,043,812		33,043,812			32,965,692
Stockholders' Equity Attributable to Parent	$ 1,755,954	$ 1,689,724	$ 1,755,954	$ 1,689,724	$ 1,741,622	$ 1,702,685	$ 1,671,692	$ 1,708,143
Held In Rabbi Trust At Cost [Member]
Stockholders' Equity Attributable to Parent	$ (3,157)	$ (4,712)	$ (3,157)	$ (4,712)	(3,116)	(3,066)	(4,649)	(4,735)
Retained Earnings
Cash dividends declared per common share (in dollars per share)	$ 0.48	$ 0.46	$ 1.44	$ 1.38
Stockholders' Equity Attributable to Parent	$ 787,742	$ 696,546	$ 787,742	$ 696,546	763,596	716,024	676,834	654,182
Deferred Compensation, Share-based Payments [Member]
Stockholders' Equity Attributable to Parent	3,157	4,712	3,157	4,712	3,116	3,066	4,649	4,735
AOCI Attributable to Parent [Member]
Stockholders' Equity Attributable to Parent	18,567	48,632	18,567	48,632	29,567	40,695	51,845	18,169
Common Stock [Member]
Stockholders' Equity Attributable to Parent	329	328	329	328	329	328	328	342
Additional Paid-in Capital [Member]
Stockholders' Equity Attributable to Parent	$ 949,316	$ 944,218	$ 949,316	$ 944,218	$ 948,130	$ 945,638	$ 942,685	$ 1,035,450
Common Class A [Member]
Common Stock, Shares, Outstanding	33,043,812	32,955,547	33,043,812	32,955,547	33,037,859	32,965,692	32,942,110	34,377,388

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Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 119,290,000	$ 86,526,000
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Depreciation and amortization	24,586,000	21,071,000
Change In Unamortized Net Loan Costs And Premiums	(22,566,000)	(9,406,000)
Provision for credit losses	(17,500,000)	52,500,000
Deferred income tax expense	271,000	2,802,000
Net unrealized (gain) loss on equity securities	(695,000)	107,000
Gain (Loss) on Disposition of Property Plant Equipment	32,000	363,000
Loss on Termination of Derivatives	0	684,000
Sale and Leaseback Transaction, Gain (Loss), Net	433,000	433,000
Stock based compensation	3,467,000	3,297,000
Increase in cash surrender value of life insurance policies	(4,508,000)	(3,902,000)
Gain Realized on Life Insurance Policies	(258,000)	(692,000)
Operating Lease, Payments	(8,993,000)	(8,899,000)
Operating lease termination payments	(4,750,000)	0
Change in Fair Value on Loans Held for Sale	1,534,000	(1,252,000)
Net change in:
Trading assets	(666,000)	(433,000)
Loans held for sale	23,017,000	(20,154,000)
Other assets	16,700,000	(200,520,000)
Increase (Decrease) in Other Operating Liabilities	28,267,000	89,164,000
Total adjustments	37,505,000	(75,703,000)
Net cash provided by operating activities	156,795,000	10,823,000
Proceeds from Sale of Debt and Equity Securities, FV-NI, Held-for-investment	1,164,000	0
Cash flows used in investing activities
Increase (Decrease) in Equity Securities, FV-NI	(1,522,000)	(331,000)
Proceeds from maturities and principal repayments of securities available for sale	75,442,000	74,898,000
Payments to Acquire Debt Securities, Available-for-sale	(1,106,079,000)	(58,704,000)
Proceeds from maturities and principal repayments of securities held to maturity	199,304,000	176,841,000
Purchases of securities held to maturity	(340,713,000)	(95,017,000)
Net redemption (purchases) of Federal Home Loan Bank stock	1,584,000	(666,000)
Investments in low income housing projects	(19,236,000)	(15,586,000)
Purchases of life insurance policies	(40,116,000)	(116,000)
Proceeds from Life Insurance Policy	576,000	2,629,000
Net decrease (increase) in loans	603,773,000	(525,626,000)
Purchases of bank premises and equipment	(16,114,000)	(8,283,000)
Proceeds from the sale of bank premises and equipment	78,000	283,000
Payments on early termination of hedging relationship	0	(684,000)
Net cash used in investing activities	(641,859,000)	(450,362,000)
Cash flows provided by financing activities
Net decrease in time deposits	(165,052,000)	(336,289,000)
Net increase in other deposits	1,432,037,000	2,040,615,000
Increase (Decrease) in Federal Funds Purchased and Securities Sold under Agreements to Repurchase, Net	0	55,000,000
Increase Decrease in Federal Home Loan Bank Advances Long Term	(10,000,000)	(25,000,000)
Repayments of Debt	(14,063,000)	(37,500,000)
Net Purchases from Stock Options Exercised	(57,000)	114,000
Restricted stock awards issued, net of awards surrendered	(1,246,000)	(1,186,000)
Proceeds from shares issued under direct stock purchase plan	1,515,000	1,620,000
Payments for shares repurchased under share repurchase program	0	(95,091,000)
Common dividends paid	(46,875,000)	(45,681,000)
Net cash provided by financing activities	1,196,259,000	1,556,602,000
Net increase in cash and cash equivalents	711,195,000	1,117,063,000
Cash and cash equivalents at beginning of year	1,296,636,000	150,974,000
Cash and cash equivalents at end of period	2,007,831,000	1,268,037,000
Supplemental schedule of noncash activities
Net increase in capital commitments relating to low income housing project investments	34,127,000	28,027,000
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	$ 5,888,000	$ 7,693,000

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Investments is Low Income Housing Tax Credits Investments in Low Income Housing Tax Credits

9 Months Ended

Sep. 30, 2021

Equity Method Investments and Joint Ventures [Abstract]

Investments in Low Income Housing Projects [Text Block]

LOW INCOME HOUSING PROJECT INVESTMENTS

The Company has invested in low income housing projects that generate Low Income Housing Tax Credits (“LIHTC”) which provide the Company with tax credits and operating loss tax benefits over a period of approximately 15 years. None of the original investment is expected to be repaid.

The following table presents certain information related to the Company's investments in low income housing projects as of the dates indicated:

	September 30 2021			December 31 2020
	(Dollars in thousands)
Original investment value	$	162,879		$	128,752
Current recorded investment	121,992			97,435
Unfunded liability obligation	74,157			49,586
Tax credits and benefits	14,251		(1)	9,404
Discrete tax adjustment	1,572		(2)	n/a
Adjusted tax credits and benefits	15,823			9,404
Amortization of investments	12,437		(1)	7,552
Net income tax benefit	3,386		(1)	1,852

(1)Amounts shown represent the estimated full year impact for the year ended December 31, 2021.

(2)Discrete adjustment recognized for difference in actual benefits as reported on Schedule K-1 versus estimated benefits for the year ended December 31, 2020.

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Investments is Low Income Housing Tax Credits Investments in Low Income Housing Tax Credits - Tables

9 Months Ended

Sep. 30, 2021

Equity Method Investments and Joint Ventures [Abstract]

Investments in Low Income Housing Projects [Table Text Block]

The following table presents certain information related to the Company's investments in low income housing projects as of the dates indicated:

	September 30 2021			December 31 2020
	(Dollars in thousands)
Original investment value	$	162,879		$	128,752
Current recorded investment	121,992			97,435
Unfunded liability obligation	74,157			49,586
Tax credits and benefits	14,251		(1)	9,404
Discrete tax adjustment	1,572		(2)	n/a
Adjusted tax credits and benefits	15,823			9,404
Amortization of investments	12,437		(1)	7,552
Net income tax benefit	3,386		(1)	1,852

(1)Amounts shown represent the estimated full year impact for the year ended December 31, 2021.

(2)Discrete adjustment recognized for difference in actual benefits as reported on Schedule K-1 versus estimated benefits for the year ended December 31, 2020.

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Investments is Low Income Housing Tax Credits Investments in Qualified Affordable Housing Projects - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2021		Dec. 31, 2020
Investments in Affordable Housing Projects [Abstract]
Original investment value	$ 162,879		$ 128,752
Amortization Method Qualified Affordable Housing Project Investments	121,992		97,435
Capital commitment relating to low income housing project investments	74,157		49,586
Tax credits and benefits	14,251	[1]	9,404
Income Tax Credits and Adjustments	1,572
Adjusted tax credits and benefits	15,823		9,404
Amortization of investments	12,437	[1]	7,552
Net income tax benefit	3,386	[1]	$ 1,852
Interest Receivable	$ 29,100

[1] Amounts shown represent the estimated full year impact for the year ended December 31, 2021.(2)Discrete adjustment recognized for difference in actual benefits as reported on Schedule K-1 versus estimated benefits for the year ended December 31, 2020.

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Basis of Presentation

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

BASIS OF PRESENTATION

Independent Bank Corp. (the “Company”) is a state chartered, federally registered bank holding company, incorporated in 1985. The Company is the sole stockholder of Rockland Trust Company (“Rockland Trust” or the “Bank”), a Massachusetts trust company chartered in 1907.

As announced on April 22, 2021, the Company has signed a definitive merger agreement under which the Company will acquire Meridian Bancorp, Inc. (“Meridian”), with the Company as the surviving entity, and East Boston Savings Bank will merge with and into Rockland trust. The Company anticipates the merger to close during the fourth quarter of 2021.

All material intercompany balances and transactions have been eliminated in consolidation. Certain previously reported amounts have been reclassified to conform to the current year’s presentation.

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements, primarily consisting of normal recurring adjustments, have been included. Results for the nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021 or any other interim period.

For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (the "2020 Form 10-K").

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Recent Accounting Standards	9 Months Ended
	Sep. 30, 2021
Recent Accounting Standards [Abstract]
RECENT ACCOUNTING STANDARDS	RECENT ACCOUNTING STANDARDS UPDATES     Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 848 "Reference Rate Reform" Update No. 2020-04. Update No. 2020-04 was issued in March 2020 to provide optional expedients and exceptions for applying GAAP to certain contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform. The amendments will not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022 for which an entity has elected certain optional expedients that are retained through the end of the hedging relationship. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022 and do not apply to contract modifications made after December 31, 2022. FASB ASC Topic 848 "Reference Rate Reform" Update No. 2021-01 was subsequently issued in January 2021 and expanded application of the optional expedients to derivative transactions affected by the discounting transition. The Company has not yet adopted the amendments in these updates, but has established a working group to guide the Company’s transition from LIBOR and has begun efforts to transition off the LIBOR index consistent with industry timelines. The working group has identified its products that utilize LIBOR and has implemented fallback language to facilitate the transition to alternative rates. The Company is also evaluating existing platforms and systems as well as alternative indices in its preparation to offer new products tied to the alternative indices.

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Securities

9 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure

SECURITIES

Trading Securities

The Company had trading securities of $3.5 million and $2.8 million as of September 30, 2021 and December 31, 2020, respectively. These securities are held in a rabbi trust and will be used for future payments associated with the Company’s non-qualified 401(k) Restoration Plan and Non-qualified Deferred Compensation Plan.

Equity Securities

The Company had equity securities of $22.8 million and $22.1 million as of September 30, 2021 and December 31, 2020, respectively. These securities consist primarily of mutual funds held in a rabbi trust and will be used for future payments associated with the Company’s supplemental executive retirement plans.

The following table represents a summary of the gains and losses recognized within non-interest income and non-interest expense within the consolidated statements of income that relate to equity securities for the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2021		2020		2021		2020
	Dollars in thousands
Net gains (losses) recognized during the period on equity securities	$	(169)	$	308	695		(107)
Less: net gains recognized during the period on equity securities sold during the period	50		—		191		6
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date	$	(219)	$	308	$	504	$	(113)

Available for Sale Securities

The following table summarizes the amortized cost, allowance for credit losses, and fair value of available for sale securities and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) as of the dates indicated:

	September 30, 2021										December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for credit losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for credit losses		Fair Value
	(Dollars in thousands)
Available for sale securities
U.S. government agency securities	$	217,613	$	1,511	$	(1,779)	$	—	$	217,345	$	22,476	$	1,640	$	—	$	—	$	24,116
U.S. treasury securities	774,492		—		(4,490)		—		770,002		—		—		—		—		—
Agency mortgage-backed securities	294,387		6,120		(3,288)		—		297,219		224,293		9,337		(1)		—		233,629
Agency collateralized mortgage obligations	85,076		1,933		(522)		—		86,487		88,687		3,083		(87)		—		91,683
State, county, and municipal securities	276		12		—		—		288		790		17		—		—		807
Single issuer trust preferred securities issued by banks	489		2		—		—		491		489		—		(1)		—		488
Pooled trust preferred securities issued by banks and insurers	1,341		—		(331)		—		1,010		1,429		—		(373)		—		1,056
Small business administration pooled securities	51,718		2,650		—		—		54,368		57,289		3,792		—		—		61,081
Total available for sale securities	$	1,425,392	$	12,228	$	(10,410)	$	—	$	1,427,210	$	395,453	$	17,869	$	(462)	$	—	$	412,860

The Company did not record a provision for estimated credit losses on any available for sale securities during the three and nine months ended September 30, 2021 and 2020. Excluded from the table above is accrued interest on available for sale securities of $3.3 million and $1.2 million as of September 30, 2021 and December 31, 2020, respectively, which is included within other assets on the consolidated balance sheets. Additionally, the Company did not record any write-offs of accrued interest income on available for sale securities during the three and nine months ended September 30, 2021 and 2020.

Furthermore, no securities held by the Company were delinquent on contractual payments nor were any securities placed on non-accrual status as of September 30, 2021 and December 31, 2020.

When securities are sold, the adjusted cost of the specific security sold is used to compute the gain or loss on the sale. The Company had no sales of securities available for sale during the three or nine months ended September 30, 2021 and 2020, and therefore no gains or losses were realized during the periods presented.

The following tables show the gross unrealized losses and fair value of the Company’s available for sale securities in an unrealized loss position, and for which the Company has not recorded a provision for credit losses, as of the dated indicated. These available for sale securities are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position:

	September 30, 2021
		Less than 12 months				12 months or longer				Total
	# of  holdings	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
U.S. government agency securities	5	$	138,262	$	(1,779)	$	—	$	—	$	138,262	$	(1,779)
U.S. treasury securities	16	770,002		(4,490)		—		—		770,002		(4,490)
Agency mortgage-backed securities	9	131,548		(3,287)		304		(1)		131,852		(3,288)
Agency collateralized mortgage obligations	1	22,994		(522)		—		—		22,994		(522)
Pooled trust preferred securities issued by banks and insurers	1	—		—		1,010		(331)		1,010		(331)
Total impaired available for sale securities	32	$	1,062,806	$	(10,078)	$	1,314	$	(332)	$	1,064,120	$	(10,410)
	December 31, 2020
		Less than 12 months				12 months or longer				Total
	# of  holdings	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
Agency mortgage-backed securities	3	$	437	$	(1)	$	—	$	—	$	437	$	(1)
Agency collateralized mortgage obligations	2	23,323		(87)		—		—		23,323		(87)
Single issuer trust preferred securities issued by banks and insurers	1	488		(1)		—		—		488		(1)
Pooled trust preferred securities issued by banks and insurers	1	—		—		1,056		(373)		1,056		(373)
Total impaired available for sale securities	7	$	24,248	$	(89)	$	1,056	$	(373)	$	25,304	$	(462)

The Company does not intend to sell these investments and has determined, based upon available evidence, that it is more likely than not that the Company will not be required to sell each security before the recovery of its amortized cost basis. In addition, management does not believe that any of the securities are impaired due to reasons of credit quality. As a result, the Company did not recognize a provision for credit losses on these investments during the three and nine months ended September 30, 2021 and 2020. The Company made this determination by reviewing various qualitative and quantitative factors regarding each investment category, such as current market conditions, extent and nature of changes in fair value, issuer rating changes and trends, volatility of earnings, and current analysts’ evaluations.

As a result of the Company’s review of these qualitative and quantitative factors, the causes of the impairments listed in the table above by category were as follows at September 30, 2021:

•U.S. Government Agency Securities, U.S. Treasury Securities, Agency Mortgage-Backed Securities and Agency Collateralized Mortgage Obligations: These portfolios have contractual terms that generally do not permit the issuer to settle the securities at a price less than the current par value of the investment. The decline in market value of these securities is attributable to changes in interest rates and not credit quality. Additionally, these securities are implicitly guaranteed by the U.S. Government or one of its agencies.

•Pooled Trust Preferred Securities: This portfolio consists of one below investment grade security which is performing. The unrealized loss on this security is attributable to the illiquid nature of the trust preferred market in the current economic and regulatory environment. Management evaluates collateral credit and instrument structure, including current and expected deferral and default rates and timing. In addition, discount rates are determined by evaluating comparable spreads observed currently in the market for similar instruments.

Held to Maturity Securities

The following table summarizes the amortized cost, fair value and allowance for credit losses of held to maturity securities and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) as of the dates indicated:

	September 30, 2021										December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for credit losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for credit losses		Fair Value
	(Dollars in thousands)
U.S. government agency securities	$	33,422	$	—	$	(127)	$	—	$	33,295	$	—	$	—	$	—	$	—	$	—
U.S. treasury securities	3,007		17		—		—		3,024		4,017		60		—		—		4,077
Agency mortgage-backed securities	352,483		10,911		(2,781)		—		360,613		356,085		18,036		—		—		374,121
Agency collateralized mortgage obligations	451,151		5,089		(4,202)		—		452,038		335,993		8,466		(340)		—		344,119
Single issuer trust preferred securities issued by banks	1,500		8		—		—		1,508		1,500		—		(2)		—		1,498
Small business administration pooled securities	23,686		1,142		—		—		24,828		26,917		1,445		—		—		28,362
Total held to maturity securities	$	865,249	$	17,167	$	(7,110)	$	—	$	875,306	$	724,512	$	28,007	$	(342)	$	—	$	752,177

The Company did not record a provision for estimated credit losses on any held to maturity securities during the three and nine months ended September 30, 2021 and 2020. Excluded from the table above is accrued interest on held to maturity securities of $2.2 million and $1.5 million as of September 30, 2021 and December 31, 2020, respectively, which is included within other assets on the consolidated balance sheets. Additionally, the Company did not record any write-offs of accrued interest income on held to maturity securities during the three and nine months ended September 30, 2021 and 2020. Furthermore, no securities held by the Company were delinquent on contractual payments nor were any securities placed on non-accrual status as of September 30, 2021 and December 31, 2020.

When securities are sold, the adjusted cost of the specific security sold is used to compute the gain or loss on the sale. The Company had no sales of held to maturity securities during the three and nine months ended September 30, 2021 and 2020, and therefore no gains or losses were realized during the periods presented.

The Company monitors the credit quality of held to maturity securities through the use of credit ratings. Credit ratings are monitored by the Company on at least a quarterly basis. As of September 30, 2021, all held to maturity securities held by the Company were rated investment grade or higher.

The actual maturities of certain available for sale or held to maturity securities may differ from the contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. A schedule of the contractual maturities of available for sale and held to maturity securities as of September 30, 2021 is presented below:

	Due in one year or less				Due after one year to five years				Due after five to ten years				Due after ten years				Total
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(Dollars in thousands)
Available for sale securities
U.S. government agency securities	$	10,000	$	10,066	$	31,422	$	31,275	$	176,191	$	176,004	$	—	$	—	$	217,613	$	217,345
U.S. treasury securities	—		—		541,282		538,755		233,210		231,247		—		—		774,492		770,002
Agency mortgage-backed securities	2,273		2,292		81,194		83,434		88,655		87,152		122,265		124,341		294,387		297,219
Agency collateralized mortgage obligations	—		—		—		—		—		—		85,076		86,487		85,076		86,487
State, county, and municipal securities	85		85		—		—		191		203		—		—		276		288
Single issuer trust preferred securities issued by banks	—		—		—		—		—		—		489		491		489		491
Pooled trust preferred securities issued by banks and insurers	—		—		—		—		—		—		1,341		1,010		1,341		1,010
Small business administration pooled securities	—		—		—		—		—		—		51,718		54,368		51,718		54,368
Total available for sale securities	$	12,358	$	12,443	$	653,898	$	653,464	$	498,247	$	494,606	$	260,889	$	266,697	$	1,425,392	$	1,427,210
Held to maturity securities
U.S. government agency securities	$	—	$	—	$	33,422	$	33,295	$	—	$	—	$	—	$	—	$	33,422	$	33,295
U.S. treasury securities	3,007		3,024		—		—		—		—		—		—		3,007		3,024
Agency mortgage-backed securities	—		—		3,482		3,677		125,204		125,407		223,797		231,529		352,483		360,613
Agency collateralized mortgage obligations	—		—		—		—		—		—		451,151		452,038		451,151		452,038
Single issuer trust preferred securities issued by banks	—		—		—		—		1,500		1,508		—		—		1,500		1,508
Small business administration pooled securities	—		—		—		—		—		—		23,686		24,828		23,686		24,828
Total held to maturity securities	$	3,007	$	3,024	$	36,904	$	36,972	$	126,704	$	126,915	$	698,634	$	708,395	$	865,249	$	875,306
Total	$	15,365	$	15,467	$	690,802	$	690,436	$	624,951	$	621,521	$	959,523	$	975,092	$	2,290,641	$	2,302,516

Included in the table above are $3.2 million of callable securities at September 30, 2021.

The carrying value of securities pledged to secure public funds, trust deposits, and for other purposes, as required or permitted by law, was $678.4 million and $419.6 million at September 30, 2021 and December 31, 2020, respectively.

At September 30, 2021 and December 31, 2020, the Company had no investments in obligations of individual states, counties, or municipalities which exceeded 10% of consolidated stockholders’ equity.

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

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Loans, Allowance for Credit Losses and Credit Quality [Text Block]

LOANS, ALLOWANCE FOR CREDIT LOSSES AND CREDIT QUALITY

Loans Held for Investment and Allowance for Credit 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 period indicated:

	Three Months Ended September 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	$	17,032	$	44,325	$	4,865	$	3,612	$	12,014	$	20,087	$	422	$	102,357
Charge-offs	(1)		—		—		(83)		—		—		(248)		(332)
Recoveries	1		—		—		50		—		49		121		221
Provision for credit loss expense	(1,018)		(6,527)		(397)		88		(967)		(1,268)		89		(10,000)
Ending balance (1)	$	16,014	$	37,798	$	4,468	$	3,667	$	11,047	$	18,868	$	384	$	92,246
	Three Months Ended September 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	$	25,662	$	36,956	$	4,501	$	4,561	$	15,046	$	24,860	$	590	$	112,176
Charge-offs	(185)		(3,885)		—		(49)		—		—		(185)		(4,304)
Recoveries	1		9		—		2		1		21		219		253
Provision for credit loss expense	2,741		6,306		709		79		(884)		(1,309)		(142)		7,500
Ending balance (1)	$	28,219	$	39,386	$	5,210	$	4,593	$	14,163	$	23,572	$	482	$	115,625
	Nine Months Ended September 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	(3,474)		—		—		(184)		—		(69)		(772)		(4,499)
Recoveries	100		57		—		65		1		107		523		853
Provision for credit loss expense	(1,698)		(7,268)		(929)		(1,309)		(3,229)		(3,230)		163		(17,500)
Ending balance (1)	$	16,014	$	37,798	$	4,468	$	3,667	$	11,047	$	18,868	$	384	$	92,246
	Nine Months Ended September 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	(185)		(3,885)		—		(194)		—		(142)		(1,342)		(5,748)
Recoveries	47		9		—		8		2		174		873		1,113
Provision for credit loss expense	12,698		23,038		2,809		2,538		470		10,633		314		52,500
Ending balance (1)	$	28,219	$	39,386	$	5,210	$	4,593	$	14,163	$	23,572	$	482	$	115,625

(1)Balances of accrued interest receivable excluded from amortized cost and the calculation of allowance for credit losses amounted to $29.1 million and $36.7 million as of September 30, 2021 and September 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.

The balance of allowance for credit losses of $92.2 million as of September 30, 2021 represents a decrease of $10.1 million, or 9.9%, compared to June 30, 2021. The decrease in the allowance was primarily driven by a release of the provision for credit losses of $10.0 million recorded during the quarter, reflecting improvements in expected overall macro-economic forecast assumptions and continued strong asset quality metrics, along with lower loan levels. While management is unable to know with certainty the direct, indirect, and future impacts of the COVID-19 pandemic, it is expected that the pandemic could have a significant adverse impact on future losses across a broad range of loan segments.  As such, the allowance for credit losses at September 30, 2021 continues to reflect increased reserve allocations to loan segments that are considered to have elevated loss exposure associated with the COVID-19 pandemic, in addition to other economic uncertainties, including labor and supply shortages, as well as inflationary factors.  These loan segments primarily include commercial relationships within industries that have been subject to mandated closures and capacity limits that have impeded and could potentially impede the borrowers’ ability to make loan payments, including loans in the following industry sections: Accommodations, Food Services, Retail Trade, Other Services (excluding Public Administration), and Arts, Entertainment and Recreation.  In addition to these industry exposures, additional risk of loss was attributable to non-owner occupied real estate borrowers with significant retail tenant exposure, as well as home equity loans within a junior lien position.  Leveraging actual historical loss given default (LGD) rates combined with stressing of assumptions over probability of default rates over these higher risk segments, qualitative adjustments were made to the initially model-driven calculated loss reserves.

    For the purpose of estimating the allowance for credit losses, management segregated the loan portfolio into the portfolio segments detailed in the above tables.  Each of these loan categories possesses unique risk characteristics that are considered when determining the appropriate level of allowance for each segment.  Some of the characteristics unique to each loan category include:

Commercial Portfolio

•Commercial and Industrial: Loans in this category consist of revolving and term loan obligations extended to business and corporate enterprises for the purpose of financing working capital and/or capital investment.  Collateral generally consists of pledges of business assets including, but not limited to: accounts receivable, inventory, plant and equipment, or real estate, if applicable. Repayment sources consist of primarily, operating cash flow, and secondarily, liquidation of assets.

•Commercial Real Estate: Loans in this category consist of mortgage loans to finance investment in real property such as multi-family residential, commercial/retail, office, industrial, hotels, educational and healthcare facilities and other specific use properties.  Loans are typically written with amortizing payment structures.  Collateral values are determined based upon third party appraisals and evaluations.  Loan to value ratios at origination are governed by established policy and regulatory guidelines. Repayment sources consist of, primarily, cash flow from operating leases and rents and, secondarily, liquidation of assets.

•Commercial Construction: Loans in this category consist of short-term construction loans, revolving and nonrevolving credit lines and construction/permanent loans to finance the acquisition, development and construction or rehabilitation of real property.  Project types include residential land development, 1-4 family, condominium, and multi-family home construction, commercial/retail, office, industrial, hotels, educational and healthcare facilities and other specific use properties.  Loans may be written with nonamortizing or hybrid payment structures depending upon the type of project.  Collateral values are determined based upon third party appraisals and evaluations.  Loan to value ratios at origination are governed by established policy and regulatory guidelines.  Repayment sources vary depending upon the type of project and may consist of sale or lease of units, operating cash flows or liquidation of other assets.

•Small Business: Loans in this category consist of revolving, term loan and mortgage obligations extended to sole proprietors and small businesses for purposes of financing working capital and/or capital investment.  Collateral generally consists of pledges of business assets including, but not limited to, accounts receivable, inventory, plant and equipment, or real estate if applicable.  Repayment sources consist primarily of operating cash flows and, secondarily, liquidation of assets.

For the commercial portfolio it is the Company’s policy to obtain personal guarantees for payment from individuals holding material ownership interests in the borrowing entities.

Consumer Portfolio

•Residential Real Estate: Residential mortgage loans held in the Company’s portfolio are made to borrowers who demonstrate the ability to make scheduled payments with full consideration to underwriting factors such as current and expected income, employment status, current assets, other financial resources, credit history and the value of the collateral.  Collateral consists of mortgage liens on 1-4 family residential properties.  Residential mortgage loans also include loans to construct owner-occupied 1-4 family residential properties.

•Home Equity: Home equity loans and credit lines are made to qualified individuals and are primarily secured by senior or junior mortgage liens on owner-occupied 1-4 family homes, condominiums or vacation homes. Each home equity loan has a fixed rate and is billed in equal payments comprised of principal and interest. The majority of home equity lines of credit have a variable rate and are billed in interest-only payments during the draw period. At the end of the draw period, the home equity line of credit is billed as a percentage of the then outstanding principal balance plus all accrued interest over a predetermined repayment period, as set forth in the note. Additionally, the Company has the option of renewing each line of credit for additional draw periods.  Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan to value ratios within established policy guidelines.

•Other Consumer: Other consumer loan products include personal lines of credit and amortizing loans made to qualified individuals for various purposes such as education, debt consolidation, personal expenses or overdraft protection.  Borrower qualifications include favorable credit history combined with supportive income and collateral requirements within established policy guidelines.  These loans may be secured or unsecured.

Credit Quality

The Company continually monitors the asset quality of the loan portfolio using all available information. Based on this information, loans demonstrating certain payment issues or other weaknesses may be categorized as adversely risk-rated, delinquent, nonperforming and/or put on nonaccrual status. Additionally, in the course of resolving such loans, the Company may choose to restructure the contractual terms of certain loans to match the borrower’s ability to repay the loan based on their current financial condition.

The Company reviews numerous credit quality indicators when assessing the risk in its loan portfolio. For the commercial portfolio, the Company utilizes a 10-point credit risk-rating system, which assigns a risk-grade to each loan obligation based on a number of quantitative and qualitative factors associated with a commercial or small business loan transaction. Factors considered include industry and market conditions, position within the industry, earnings trends, operating cash flow, asset/liability values, debt capacity, guarantor strength, management and controls, financial reporting, collateral, and other considerations. The risk-rating categories for the commercial portfolio are defined as follows:

•Pass: Risk-rating “1” through “6” comprises of loans ranging from ‘Substantially Risk Free’ which indicates borrowers are of unquestioned credit standing and the pinnacle of credit quality, well established companies with a very strong financial condition, and loans fully secured by cash collateral, through ‘Acceptable Risk’, which indicates borrowers may exhibit declining earnings, strained cash flow, increasing or above average leverage and/or weakening market fundamentals that indicate below average asset quality, margins and market share. Collateral coverage is protective.

•Potential Weakness: Borrowers exhibit potential credit weaknesses or downward trends deserving management’s close attention. If not checked or corrected, these trends will weaken the Company’s asset and position. While potentially weak, currently these borrowers are marginally acceptable; no loss of principal or interest is envisioned.

•Definite Weakness Loss Unlikely: Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt. Loans may be inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Normal repayment from the borrower is in jeopardy, although no loss of principal is envisioned. However, there is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected. Collateral coverage may be inadequate to cover the principal obligation.

•Partial Loss Probable: Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt with the added provision that the weaknesses make collection of the debt in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Serious problems exist to the point where partial loss of principal is likely.

•Definite Loss: Borrowers deemed incapable of repayment. Loans to such borrowers are considered uncollectible and of such little value that continuation as active assets of the Company is not warranted.

The Company utilizes a comprehensive, continuous strategy for evaluating and monitoring commercial credit quality. Initially, credit quality is determined at loan origination and is re-evaluated when subsequent actions, such as renewals, modifications or reviews, occur. Actively managed commercial borrowers are required to provide updated financial information at least annually which is carefully evaluated for any changes in credit quality. Larger loan relationships are subject to a full annual credit review by experienced credit professionals, while continuous portfolio monitoring techniques are employed to evaluate changes in credit quality for smaller loan relationships. Any changes in credit quality are reflected in risk-rating changes. Additionally, the Company retains an independent loan review firm to evaluate the credit quality of the commercial loan portfolio. The independent loan review process achieves significant penetration into the commercial loan portfolio and reports the results of these reviews to the Audit Committee of the Board of Directors on a quarterly basis. Commercial loan modifications granted by the Company allowing payment deferrals for qualifying borrowers in accordance with the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") were assessed for potential downgrades of risk ratings.

For the Company’s consumer portfolio, the quality of the loan is best indicated by the repayment performance of an individual borrower. As a result, for this portfolio the Company utilizes a pass/default risk-rating system, based on an age analysis (i.e., days past due) associated with each consumer loan. Under this structure, consumer loans less than 90 days past due are assigned a "pass" rating, while any consumer loans 90 days or more past due are assigned a "default" rating. Consumer loan modifications granted by the Company allowing payment deferrals for qualifying borrowers in accordance with the CARES Act were not categorized as delinquent loans.

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:

	September 30, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving converted to Term		Total (1)
	(Dollars in thousands)
Commercial and industrial
Pass (2)	$	590,532	$	185,706	$	97,095	$	74,381	$	15,175	$	16,731	$	605,718	$	66	$	1,585,404
Potential weakness	1,338		9,035		3,286		1,672		980		1,632		10,262		—		28,205
Definite weakness - loss unlikely	16,597		332		793		1,034		2,678		214		5,452		—		27,100
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	608,467	$	195,073	$	101,174	$	77,087	$	18,833	$	18,577	$	621,432	$	66	$	1,640,709
Commercial real estate
Pass	$	699,565	$	1,019,453	$	606,645	$	347,874	$	442,306	$	794,263	$	17,068	$	—	$	3,927,174
Potential weakness	22,106		29,091		51,976		14,628		21,350		82,655		13,615		—		235,421
Definite weakness - loss unlikely	9,331		16,336		3,399		13,657		9,762		6,179		—		—		58,664
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	$	731,002	$	1,064,880	$	662,020	$	376,159	$	473,418	$	883,097	$	30,683	$	—	$	4,221,259
Commercial construction
Pass	$	127,945	$	216,573	$	82,559	$	22,851	$	22,873	$	6,505	$	16,424	$	2,134	$	497,864
Potential weakness	—		12,991		—		—		—		—		—		—		12,991
Definite weakness - loss unlikely	—		4,560		—		—		—		—		—		—		4,560
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial construction	$	127,945	$	234,124	$	82,559	$	22,851	$	22,873	$	6,505	$	16,424	$	2,134	$	515,415
Small business
Pass	$	40,736	$	38,804	$	22,075	$	14,241	$	10,675	$	21,809	$	32,679	$	—	$	181,019
Potential weakness	14		—		383		200		5		174		627		—		1,403
Definite weakness - loss unlikely	138		637		41		26		10		284		580		—		1,716
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total small business	$	40,888	$	39,441	$	22,499	$	14,467	$	10,690	$	22,267	$	33,886	$	—	$	184,138
Residential real estate
Pass	$	277,949	$	184,974	$	92,723	$	97,915	$	102,581	$	463,397	$	—	$	—	$	1,219,539
Default	—		123		—		1,024		—		2,163		—		—		3,310
Total residential real estate	$	277,949	$	185,097	$	92,723	$	98,939	$	102,581	$	465,560	$	—	$	—	$	1,222,849
Home equity
Pass	$	58,897	$	68,629	$	42,083	$	37,644	$	41,792	$	117,488	$	628,575	$	3,575	$	998,683
Default	—		—		—		—		—		33		1,717		35		1,785
Total home equity	$	58,897	$	68,629	$	42,083	$	37,644	$	41,792	$	117,521	$	630,292	$	3,610	$	1,000,468
Other consumer
Pass	$	307	$	347	$	244	$	78	$	500	$	5,338	$	16,359	$	—	$	23,173
Default	—		—		—		—		—		—		2		—		2
Total other consumer	$	307	$	347	$	244	$	78	$	500	$	5,338	$	16,361	$	—	$	23,175
Total	$	1,845,455	$	1,787,591	$	1,003,302	$	627,225	$	670,687	$	1,518,865	$	1,349,078	$	5,810	$	8,808,013

	September 30, 2020
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving converted to Term		Total (1)
	(Dollars in thousands)
Commercial and industrial
Pass (2)	$	1,012,974	$	153,137	$	107,318	$	34,826	$	23,065	$	22,334	$	601,937	$	2,577	$	1,958,168
Potential weakness	2,560		2,302		7,833		4,573		1,219		318		15,248		50		34,103
Definite weakness - loss unlikely	2,732		1,553		22,748		5,500		2,483		1,419		33,496		—		69,931
Partial loss probable	—		—		—		—		—		143		—		—		143
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	1,018,266	$	156,992	$	137,899	$	44,899	$	26,767	$	24,214	$	650,681	$	2,627	$	2,062,345
Commercial real estate
Pass	$	753,415	$	859,548	$	512,371	$	587,345	$	399,442	$	751,629	$	39,998	$	16,341	$	3,920,089
Potential weakness	20,639		15,957		20,313		7,941		27,253		47,875		—		—		139,978
Definite weakness - loss unlikely	4,261		2,265		10,092		21,081		2,170		6,605		—		—		46,474
Partial loss probable	—		—		18,923		—		—		—		—		—		18,923
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	$	778,315	$	877,770	$	561,699	$	616,367	$	428,865	$	806,109	$	39,998	$	16,341	$	4,125,464
Commercial construction
Pass	$	182,291	$	196,420	$	73,298	$	66,406	$	—	$	6,750	$	31,372	$	1,077	$	557,614
Potential weakness	—		9,352		5,037		—		—		—		328		—		14,717
Definite weakness - loss unlikely	—		—		1,003		—		—		—		—		—		1,003
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial construction	$	182,291	$	205,772	$	79,338	$	66,406	$	—	$	6,750	$	31,700	$	1,077	$	573,334
Small business
Pass	$	27,457	$	28,766	$	20,806	$	14,627	$	14,528	$	22,644	$	34,569	$	—	$	163,397
Potential weakness	—		10		16		10		755		232		736		—		1,759
Definite weakness - loss unlikely	184		408		78		170		98		723		786		—		2,447
Partial loss probable	—		—		—		—		—		—		29		—		29
Definite loss	—		—		—		—		—		—		—		—		—
Total small business	$	27,641	$	29,184	$	20,900	$	14,807	$	15,381	$	23,599	$	36,120	$	—	$	167,632
Residential real estate
Pass	$	131,691	$	167,901	$	187,194	$	168,048	$	241,638	$	449,219	$	—	$	—	$	1,345,691
Default	728		—		760		235		167		4,724		—		—		6,614
Total residential real estate	$	132,419	$	167,901	$	187,954	$	168,283	$	241,805	$	453,943	$	—	$	—	$	1,352,305
Home equity
Pass	$	60,274	$	66,238	$	59,534	$	59,387	$	44,817	$	122,397	$	681,784	$	4,057	$	1,098,488
Default	—		—		—		—		—		455		2,044		67		2,566
Total home equity	$	60,274	$	66,238	$	59,534	$	59,387	$	44,817	$	122,852	$	683,828	$	4,124	$	1,101,054
Other consumer
Pass	$	679	$	450	$	209	$	739	$	696	$	7,737	$	12,493	$	—	$	23,003
Default	—		—		—		20		—		34		2		—		56
Total other consumer	$	679	$	450	$	209	$	759	$	696	$	7,771	$	12,495	$	—	$	23,059

Total $ 2,199,885  $ 1,504,307  $ 1,047,533  $ 970,908  $ 758,331  $ 1,445,238  $ 1,454,822  $ 24,169  $ 9,405,193 

(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 $383.6 million as of September 30, 2021, including $16.3 million and $367.3 million originated in 2020 and 2021, respectively, while outstanding PPP loans as of September 30, 2020 totaled $811.7 million.

    For the Company’s consumer portfolio, the quality of the loan is best indicated by the repayment performance of an individual borrower. However, the Company does supplement performance data with current Fair Isaac Corporation (“FICO”) scores and Loan to Value (“LTV”) estimates. Current FICO data is purchased and appended to all consumer loans on a regular basis. In addition, automated valuation services and broker opinions of value are used to supplement original value data for the residential real estate and home equity portfolios, periodically. The following table shows the weighted average FICO scores and the weighted average combined LTV ratios at the dates indicated below:

	September 30 2021		December 31 2020
Residential real estate portfolio
FICO score (re-scored)(1)	750		749
LTV (re-valued)(2)	55.4	%	57.4	%
Home equity portfolio
FICO score (re-scored)(1)	773		771
LTV (re-valued)(2)(3)	43.3	%	46.0	%

(1)The average FICO scores at September 30, 2021 are based upon rescores from September 2021, as available for previously originated loans, or origination score data for loans booked in September 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 September 30, 2021 are based upon updated automated valuations as of August 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.

Unfunded Commitments

Management evaluates the need for a reserve on unfunded lending commitments in a manner consistent with loans held for investment. At September 30, 2021 and December 31, 2020, the Company's estimated reserve for unfunded commitments amounted to $1.3 million and $1.2 million, respectively.

Asset Quality

The Company’s philosophy toward managing its loan portfolios is predicated upon careful monitoring, which stresses early detection and response to delinquent and default situations. Delinquent loans are managed by a team of collection specialists and the Company seeks to make arrangements to resolve any delinquent or default situation over the shortest possible time frame.  As a general rule, loans 90 days or more past due with respect to principal or interest are classified as nonaccrual loans. The Company also may use discretion regarding other loans 90 days or more delinquent if the loan is well secured and/or in process of collection.

In response to the COVID-19 pandemic, the Company has granted loan modifications to allow deferral of payments for borrowers negatively impacted by the pandemic. The balance of loans with active deferrals as of September 30, 2021 and December 31, 2020 was $222.9 million and $173.6 million, respectively. The majority of these loans with active deferrals as of September 30, 2021 continue to be characterized as current loans. In accordance with regulatory guidance, these modifications are not considered to be troubled debt restructures ("TDRs") if they were performing as of December 31, 2019. Additionally, a majority of these modified loans are characterized as current and therefore are not impacting nonaccrual or delinquency totals as of September 30, 2021 and December 31, 2020. The Company does, however, consider all active deferrals when estimating loss reserves. As loans reach their deferral maturity date, consideration of TDR and delinquency status will resume in accordance with the Company's accounting policy.

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

	Nonaccrual Balances
	September 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	$	3,468	$	15,807	$	19,275	$	3,804	$	30,925	$	34,729
Commercial real estate	8,541		3,247		11,788		10,195		—		10,195
Small business	46		—		46		815		10		825
Residential real estate	6,486		4,386		10,872		10,935		4,593		15,528
Home equity	3,746		—		3,746		5,427		—		5,427
Other consumer	83		—		83		156		—		156
Total nonaccrual loans (1)	$	22,370	$	23,440	$	45,810	$	31,332	$	35,528	$	66,860

(1)Included in these amounts were $21.1 million and $22.2 million of nonaccruing TDRs at September 30, 2021 and December 31, 2020, respectively.

    It is the Company's policy to reverse any accrued interest when a loan is put on nonaccrual status, and, as such, the Company did not record any interest income on nonaccrual loans during the nine months ended September 30, 2021 and September 30, 2020.

In accordance with government moratorium orders established in response to the COVID-19 pandemic, new foreclosures pursued by the Company were on hold through August 31, 2021, at which point such orders were lifted. The following table shows information regarding foreclosed residential real estate property at the dates indicated:

	September 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	$	1,215	$	1,750

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

	September 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	2	$	343	1	$	87	—	$	—	3	$	430	$	1,640,279	$	1,640,709	$	—
Commercial real estate	6	5,142		1	487		5	3,674		12	9,303		4,211,956		4,221,259		—
Commercial construction	—	—		—	—		—	—		—	—		515,415		515,415		—
Small business	8	243		2	35		5	27		15	305		183,833		184,138		—
Residential real estate	13	2,037		2	848		22	2,822		37	5,707		1,217,142		1,222,849		—
Home equity	9	479		5	218		24	1,784		38	2,481		997,987		1,000,468		—
Other consumer (1)	230	109		12	32		3	2		245	143		23,032		23,175		—
Total	268	$	8,353	23	$	1,707	59	$	8,309	350	$	18,369	$	8,789,644	$	8,808,013	$	—

	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.

Troubled Debt Restructurings

In the course of resolving nonperforming loans, the Bank may choose to restructure the contractual terms of certain loans. The Bank attempts to work out an alternative payment schedule with the borrower in order to avoid foreclosure actions. Any loans that are modified are reviewed by the Bank to identify if a TDR has occurred, which is when, for economic or legal reasons related to a borrower’s financial difficulties, the Bank grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status and the restructuring of the loan may include the transfer of assets from the borrower to satisfy the debt, a modification of loan terms, or a combination of the two.

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

		September 30, 2021		December 31, 2020
	(Dollars in thousands)
TDRs on accrual status		$	15,950	$	16,983
TDRs on nonaccrual		21,104		22,209
Total TDRs		$	37,054	$	39,192
Additional commitments to lend to a borrower who has been a party to a TDR		$	352	$	263

The Company’s policy is to have any restructured loan which is on nonaccrual status prior to being modified remain on nonaccrual status for six months subsequent to being modified before management considers its return to accrual status. If the restructured loan is on accrual status prior to being modified, it is reviewed to determine if the modified loan should remain on accrual status. Additionally, loans classified as TDRs are adjusted to reflect the changes in value of the recorded investment in the loan, if any, resulting from the granting of a concession. For all residential real estate loan modifications, the borrower must perform during a 90 day trial period before the modification is finalized.

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					Nine Months Ended
	September 30, 2021					September 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	—	—		—		2	189		189
Total (1)	—	$	—	$	—	8	$	18,301	$	18,301

	Three Months Ended					Nine Months Ended
	September 30, 2020					September 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	2	$	83	$	83	5	$	391	$	391
Commercial real estate	3	744		744		8	2,518		2,518
Small business	—	—		—		2	112		88
Residential real estate	—	—		—		2	559		642
Total (1)	5	$	827	$	827	17	$	3,580	$	3,639

(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 September 30, 2021, $14.3 million of modifications on existing TDRs during the nine months ended September 30, 2021, and $83,000 and $1.5 million of modifications on existing TDRs during the three and nine months ended September 30, 2020, respectively.

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

	Three Months Ended		Nine Months Ended
	September 30		September 30
	2021	2020	2021		2020
	(Dollars in thousands)
Adjusted interest rate	—	218	$	—	$	822
Combination rate and maturity	—	—	14,148		—
Court ordered concession	—	—	—		25
Extended maturity	—	609	4,153		2,792
Total	—	827	$	18,301	$	3,639

The Company considers a loan to have defaulted when it reaches 90 days past due. There was one commercial real estate loan modified during the preceding twelve months with a recorded investment of $3.2 million, which subsequently defaulted during the nine month period ended September 30, 2021. There were no defaults on such loans modified during the prior twelve months for the three and nine month periods ended September 30, 2020, respectively. The Company determines the amount of allowance on TDRs in accordance with CECL methodology using a discounted cash flow approach, or a fair value of collateral approach if the loan is determined to be individually evaluated.

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Stock Based Compensation

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION

During the nine months ended September 30, 2021, the Company had the following activity related to stock based compensation:

Time Vested Restricted Stock Awards

The Company made the following awards of time vested restricted stock:

Date	Shares Granted	Plan	Grant Date Fair Value Per Share		Vesting Period
2/18/2021	49,550	2005 Employee Stock Plan	$	81.84	Ratably over 5 years from grant date
5/25/2021	7,680	2018 Non-Employee Director Stock Plan	$	78.18	Shares vested immediately
9/1/2021	640	2018 Non-Employee Director Stock Plan	$	76.78	Shares vested immediately

Performance-Based Restricted Stock Awards

    On February 18, 2021, the Company granted 18,900 performance-based restricted stock awards to certain executive level employees. These performance-based restricted stock awards were issued from the 2005 Employee Stock Plan and were determined to have a grant date fair value per share of $81.84. The number of shares to be vested are contingent upon the Company's attainment of certain performance criteria to be measured at the end of a three year performance period, ending December 31, 2023. The awards will vest upon the earlier of the date on which it is determined if the performance goal is achieved subsequent to the performance period or March 31, 2024.

    On March 12, 2021, the performance-based restricted stock awards that were awarded on February 15, 2018 vested at 85% of the maximum target shares awarded, or 13,005 shares.

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Derivatives and Hedging Activities

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Fair Value

DERIVATIVE AND HEDGING ACTIVITIES

The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally to manage the Company’s interest rate risk. Additionally, the Company enters into interest rate derivatives, foreign exchange contracts and risk participation agreements to accommodate the business requirements of its customers (“customer related positions”). The Company minimizes the market and liquidity risks of customer related positions by entering into similar offsetting positions with broker-dealers. Derivative instruments are carried at fair value in the Company's financial statements. The accounting for changes in the fair value of a derivative instrument is dependent upon whether or not it qualifies as a hedge for accounting purposes, and further, by the type of hedging relationship.

The Company does not enter into proprietary trading positions for any derivatives.

The Company is subject to over-the-counter derivative clearing requirements which require certain derivatives to be cleared through central clearing houses. Accordingly, the Company clears certain derivative transactions through the Chicago Mercantile Exchange Clearing House ("CME"). This clearing house requires the Company to post initial and variation margin to mitigate the risk of non-payment, the latter of which is received or paid daily based on the net asset or liability position of the contracts.

Interest Rate Positions

The Company may utilize various interest rate derivatives as hedging instruments against interest rate risk associated with the Company’s borrowings and loan portfolios. An interest rate derivative is an agreement whereby one party agrees to pay a floating rate of interest on a notional principal amount in exchange for receiving a fixed rate of interest on the same notional amount, for a predetermined period of time, from a second party. The amounts relating to the notional principal amount are not actually exchanged.

The following tables reflect the Company's derivative positions as of the dates indicated below for interest rate derivatives which qualify as cash flow hedges for accounting purposes:

September 30, 2021
				Weighted Average Rate
	Notional Amount		Average Maturity	Current Rate Received		Pay Fixed Swap Rate		Fair Value
	(in thousands)		(in years)					(in thousands)
Interest rate swaps on borrowings	$	75,000	0.43	0.12	%	1.53	%	$	(593)
				Current Rate Paid		Receive Fixed Swap Rate
Interest rate swaps on loans	550,000		2.83	0.08	%	2.16	%	18,016
				Current Rate Paid		Receive Fixed Swap Rate Cap - Floor
Interest rate collars on loans	400,000		1.91	0.08	%	2.73% - 2.20%		13,971
Total	$	1,025,000						$	31,394
December 31, 2020
				Weighted Average Rate
	Notional Amount		Average Maturity	Current Rate Received		Pay Fixed Swap Rate		Fair Value
	(in thousands)		(in years)					(in thousands)
Interest rate swaps on borrowings	$	75,000	1.18	0.22	%	1.53	%	$	(1,341)
				Current Rate Paid		Receive Fixed Swap Rate
Interest rate swaps on loans	450,000		2.66	0.15	%	2.37	%	27,021
				Current Rate Paid		Receive Fixed Swap Rate Cap - Floor
Interest rate collars on loans	400,000		2.66	0.15	%	2.73% - 2.20%		21,764
Total	$	925,000						$	47,444

The maximum length of time over which the Company is currently hedging its exposure to the variability in future cash flows for forecasted transactions related to the payment of variable interest on existing financial instruments is 7.5 years.

For derivative instruments that are designated and qualify as cash flow hedging instruments, the effective portion of the gains or losses is reported as a component of other comprehensive income ("OCI"), and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings.  The Company expects approximately $19.0 million (pre-tax) to be reclassified as an increase to interest income and $509,000 (pre-tax) to be reclassified as an increase to interest expense, from OCI related to the Company’s cash flow hedges in the next twelve months.  This reclassification is due to anticipated payments that will be made and/or received on the swaps based upon the forward curve as of September 30, 2021.

The Company had no fair value hedges as of September 30, 2021 or December 31, 2020.

Customer Related Positions

Loan level derivatives, primarily interest rate swaps, offered to commercial borrowers through the Company’s loan level derivative program do not qualify as hedges for accounting purposes. The Company believes that its exposure to commercial customer derivatives is limited because these contracts are simultaneously matched at inception with an offsetting dealer transaction. Derivatives with dealer counterparties are then either cleared through a clearinghouse or settled directly with a single counterparty. The commercial customer derivative program allows the Company to retain variable-rate commercial loans while allowing the customer to synthetically fix the loan rate by entering into a variable-to-fixed interest rate swap. The amounts relating to the notional principal amount are not actually exchanged.

Foreign exchange contracts offered to commercial borrowers through the Company’s derivative program do not qualify as hedges for accounting purposes. The Company acts as a seller and buyer of foreign exchange contracts to accommodate its customers. To mitigate the market and liquidity risk associated with these derivatives, the Company enters into similar offsetting positions. The amounts relating to the notional principal amount are exchanged.

The Company has entered into risk participation agreements with other dealer banks in commercial loan agreements. Participating banks guarantee the performance on borrower-related interest rate swap contracts. These derivatives are not designated as hedges and, therefore, changes in fair value are recognized in earnings. Under a risk participation-out agreement, a derivative asset, the Company participates out a portion of the credit risk associated with the interest rate swap position executed with the commercial borrower for a fee paid to the participating bank. Under a risk participation-in agreement, a derivative liability, the Company assumes, or participates in, a portion of the credit risk associated with the interest rate swap position with the commercial borrower for a fee received from the other bank.

The following table reflects the Company’s customer related derivative positions as of the dates indicated below for those derivatives not designated as hedging:

		Notional Amount Maturing
	Number of  Positions  (1)	Less than 1 year		Less than 2 years		Less than 3 years		Less than 4 years		Thereafter		Total		Fair Value
	September 30, 2021
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	293	$	30,047	$	148,874	$	129,939	$	288,580	$	980,166	$	1,577,606	$	67,126
Pay fixed, receive variable	293	30,047		148,874		129,939		288,580		980,166		1,577,606		(67,122)
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	45	148,253		6,087		—		—		—		154,340		(5,529)
Buys U.S. currency, sells foreign currency	45	148,253		6,087		—		—		—		154,340		5,530
Risk participation agreements
Participation out	11	—		2,645		—		31,719		67,767		102,131		236
Participation in	7	18,450		23,375		16,768		—		8,372		66,965		(64)
		Notional Amount Maturing
	Number of  Positions  (1)	Less than 1 year		Less than 2 years		Less than 3 years		Less than 4 years		Thereafter		Total		Fair Value
	December 31, 2020
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	322	$	102,999	$	76,487	$	149,265	$	147,422	$	1,222,557	$	1,698,730	$	127,226
Pay fixed, receive variable	313	102,999		76,487		149,265		147,422		1,222,557		1,698,730		(127,216)
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	33	87,557		5,300		—		—		—		92,857		(4,214)
Buys U.S. currency, sells foreign currency	33	87,557		5,300		—		—		—		92,857		4,224
Risk participation agreements
Participation out	12	6,721		—		2,675		7,307		93,378		110,081		512
Participation in	8	—		30,649		29,072		—		15,844		75,565		(118)

(1)The Company may enter into one dealer swap agreement which offsets multiple commercial borrower swap agreements.

Mortgage Derivatives

The Company enters into commitments to fund residential mortgage loans at specified rates and times in the future, with the intention that loans may be sold subsequently in the secondary market. Mortgage loan commitments are referred to as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. These commitments are recognized at fair value on the consolidated balance sheet in other assets and other liabilities with changes in their fair values recorded within mortgage banking income. In addition, the Company has elected the fair value option to carry loans held for sale at fair value. The change in fair value of loans held for sale is recorded in current period earnings as a component of mortgage banking income in accordance with the Company's fair value election. The fair value of loans held for sale decreased by $75,000 and increased by $413,000 for the three month periods ended September 30, 2021 and 2020, respectively. The fair value of loans held for sale decreased by $1.5 million and increased by $1.3 million for the nine month periods ended September 30, 2021 and 2020, respectively. These amounts were offset in earnings by the change in the fair value of mortgage derivatives.

Outstanding loan commitments expose the Company to the risk that the price of the loans arising from exercise of the loan commitment might change from inception of the rate lock to funding of the loan due to changes in mortgage interest rates. If interest rates increase, the value of these loan commitments decreases. Conversely, if interest rates decrease, the value of these loan commitments increases. To protect against the price risk inherent in derivative loan commitments, the Company utilizes both "mandatory delivery" and "best efforts" forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. Mandatory delivery contracts are accounted for as derivative instruments. Included in the mandatory delivery forward commitments are To Be Announced securities ("TBAs"). Certain assumptions, including pull through rates and rate lock periods, are used in managing the existing and future hedges. The accuracy of underlying assumptions will impact the ultimate effectiveness of any hedging strategies.

With mandatory delivery contracts, the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date. If the Company fails to deliver the amount of mortgages necessary to fulfill the commitment by the specified date, it is obligated to pay a "pair-off" fee, based on then-current market prices, to the investor/counterparty to compensate the investor for the shortfall. Generally, the Company makes this type of commitment once mortgage loans have been funded and are held for sale, in order to minimize the risk of failure to deliver the requisite volume of loans to the investor and paying pair-off fees as a result. The Company also sells TBA securities to offset potential changes in the fair value of derivative loan commitments. Generally, the Company sells TBA securities by entering into derivative loan commitments for settlement in 30 to 90 days. The Company expects that mandatory delivery contracts, including TBA securities, will experience changes in fair value opposite to the changes in the fair value of derivative loan commitments.

With best effort contracts, the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the loan to the underlying borrower closes. Generally, best efforts cash contracts have no pair off risk regardless of market movement. The price the investor will pay the seller for an individual loan is specified prior to the loan being funded (e.g., on the same day the lender commits to lend funds to a potential borrower). The Company expects that these best efforts forward loan sale commitments will experience a net neutral shift in fair value with related derivative loan commitments.

The aggregate amount of net realized gains or losses on sales of such loans included within mortgage banking income was $4.9 million and $10.0 million for the three month periods ended September 30, 2021 and 2020, respectively, and $17.2 million and $20.7 million for the nine months ended September 30, 2021 and 2020, respectively.

Balance Sheet Offsetting

The Company does not offset fair value amounts recognized for derivative instruments. The Company does net the amount recognized for the right to reclaim cash collateral against the obligation to return cash collateral arising from derivative instruments executed with the same counterparty under a master netting arrangement. Collateral legally required to be maintained at dealer banks by the Company is monitored and adjusted as necessary.

A daily settlement occurs through the CME for changes in the fair value of centrally cleared derivatives. Not all of the derivatives are required to be cleared through the daily clearing agent. As a result, the total fair values of loan level derivative assets and liabilities recognized on the Company's financial statements are not equal and offsetting.

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the balance sheet and the potential effect of netting arrangements on its financial position, at the dates indicated:

	Asset Derivatives (1)						Liability Derivatives (2)
	Fair Value at			Fair Value at			Fair Value at			Fair Value at
	September 30 2021			December 31 2020			September 30 2021			December 31 2020
	(Dollars in thousands)
Derivatives designated as hedges
Interest rate derivatives	$	32,380	(3)	$	48,786	(3)	$	986	(4)	$	1,342	(4)
Derivatives not designated as hedges
Customer Related Positions
Loan level derivatives	76,552		(3)	127,228		(3)	76,548		(4)	127,218		(4)
Foreign exchange contracts	5,531			4,359			5,530			4,349
Risk participation agreements	236			513			64			119
Mortgage Derivatives
Interest rate lock commitments	1,202			6,513			—			—
Forward sale loan commitments	—			—			22			1
Forward sale hedge commitments	457			—			—			1,035
Total derivatives not designated as hedges	83,978			138,613			82,164			132,722
Total	116,358			187,399			83,150			134,064
Netting Adjustments (5)	(4,808)			23			6,454			16,105
Net Derivatives on the Balance Sheet	111,550			187,422			76,696			117,959
Financial instruments (6)	36,914			48,786			36,914			48,786
Cash collateral pledged (received)	—			—			33,249			62,460
Net Derivative Amounts	$	74,636		$	138,636		$	6,533		$	6,713

(1)All asset derivatives are located in other assets on the balance sheet.

(2)All liability derivatives are located in other liabilities on the balance sheet.

(3)Approximately $1.2 million and $1.6 million of accrued interest receivable is included in the fair value of the interest rate and loan level asset derivatives, respectively, as of September 30, 2021. Accrued interest receivable of approximately $1.2 million and $2.0 million is included in the fair value of the interest rate and loan level asset derivatives, respectively, as of December 31, 2020.

(4)Approximately $60,000 and $1.6 million of accrued interest payable is included in the fair value of the interest rate and loan level liability derivatives, respectively, as of September 30, 2021. Accrued interest payable of approximately $81,000 and $2.0 million is included in the fair value of the interest rate and loan level derivative liabilities, respectively, as of December 31, 2020.

(5)Netting adjustments represent the amounts recorded to convert derivative assets and liabilities cleared through CME from a gross basis to a net basis, inclusive of the variation margin payments, in accordance with applicable accounting guidance. As displayed in the table above, derivatives that cleared through the CME were either in a net asset position or a net liability position as of September 30, 2021.

(6)Reflects offsetting derivative positions with the same counterparty that are not netted on the balance sheet.

The table below presents the effect of the Company’s derivative financial instruments included in OCI and current earnings for the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2021		2020		2021		2020
	(Dollars in thousands)
Derivatives designated as hedges
Gain (loss) in OCI on derivatives (effective portion), net of tax	$	(3,383)	$	(2,729)	$	(11,559)	$	20,452
Gain reclassified from OCI into interest income or interest expense (effective portion)	$	4,791	$	4,339	$	13,869	$	9,901
Loss reclassified from OCI into noninterest expense (loss on termination)	$	—	$	(684)	$	—	$	(684)
Interest expense	$	—	$	—	$	—	$	—
Other expense	—		—		—		—
Total	$	—	$	—	$	—	$	—
Derivatives not designated as hedges
Changes in fair value of customer related positions
Other income	$	54	$	21	$	137	$	46
Other expense	(80)		(28)		(374)		(52)
Changes in fair value of mortgage derivatives
Mortgage banking income	(213)		2,027		(3,840)		4,653
Total	$	(239)	$	2,020	$	(4,077)	$	4,647

    The Company's derivative agreements with institutional counterparties contain various credit-risk related contingent provisions, such as requiring the Company to maintain a well-capitalized capital position. If the Company fails to meet these conditions, the counterparties could request the Company make immediate payment or demand that the Company provide immediate and ongoing full collateralization on derivative positions in net liability positions. The aggregate fair value of all derivative instruments with credit-risk related contingent features that were in a net liability position was $35.9 million and $79.8 million at September 30, 2021 and December 31, 2020, respectively. Although none of the contingency provisions have applied as of September 30, 2021 and December 31, 2020, the Company has posted collateral to offset the net liability exposure with institutional counterparties.

    By using derivatives, the Company is exposed to credit risk to the extent that counterparties to the derivative contracts do not perform as required. Should a counterparty fail to perform under the terms of a derivative contract, the Company's credit exposure on interest rate swaps is limited to the net positive fair value and accrued interest of all swaps with each counterparty. The Company seeks to minimize counterparty credit risk through credit approvals, limits, monitoring procedures, and obtaining collateral, where appropriate. Institutional counterparties must have an investment grade credit rating and be approved by the Company's Board of Directors. As such, management believes the risk of incurring credit losses on derivative contracts with institutional counterparties is remote. The Company's exposure relating to institutional counterparties was $37.1 million and $48.8 million at September 30, 2021 and December 31, 2020, respectively. The Company’s exposure relating to customer counterparties was approximately $71.8 million and $127.2 million at September 30, 2021 and December 31, 2020, respectively. Credit exposure may be reduced by the value of collateral pledged by the counterparty.

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Fair Value Measurements

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the assumptions applied by the Company when determining fair value reflect those that the Company determines market participants would use to price the asset or liability at the measurement date. If there has been a significant decrease in the volume and level of activity for the asset or liability, regardless of the valuation technique(s) used, the objective of a fair value measurement remains the same. Fair value is the price that would be received if the asset were to be sold or that would be or paid if the liability were to be transferred in an orderly market transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. When determining fair value, the Company considers pricing information and other inputs that are current as of the measurement date. In periods of market dislocation, the observability of prices and other inputs

may be reduced for certain instruments, or not available at all. The unavailability or reduced availability of pricing or other input information could cause an instrument to be reclassified from one level to another.

The Fair Value Measurements and Disclosures Topic of the FASB ASC defines fair value and establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under the Fair Value Measurements and Disclosures Topic of the FASB ASC are described below:

Level 1 – Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 – Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

Valuation Techniques

There have been no changes in the valuation techniques used during the nine months ended September 30, 2021.

Securities

Trading and Equity Securities

These equity securities are valued based on market quoted prices. These securities are categorized in Level 1 as they are actively traded and no valuation adjustments have been applied.

U.S. Government Agency and U.S. Treasury Securities

Fair value is estimated using either multi-dimensional spread tables or benchmarks. The inputs used include benchmark yields, reported trades, and broker/dealer quotes. These securities are classified as Level 2.

Agency Mortgage-Backed Securities

Fair value is estimated using either a matrix or benchmarks. The inputs used include benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. These securities are categorized as Level 2.

Agency Collateralized Mortgage Obligations and Small Business Administration Pooled Securities

The valuation model for these securities is volatility-driven and ratings based, and uses multi-dimensional spread tables. The inputs used include benchmark yields, reported trades, new issue data, broker dealer quotes, and collateral performance. If there is at least one significant model assumption or input that is not observable, these securities are categorized as Level 3 within the fair value hierarchy; otherwise, they are classified as Level 2.

State, County, and Municipal Securities

The fair value is estimated using a valuation matrix with inputs including bond interest rate tables, recent transactions, and yield relationships. These securities are categorized as Level 2.

Single and Pooled Issuer Trust Preferred Securities

The fair value of trust preferred securities, including pooled and single issuer preferred securities, is estimated using external pricing models, discounted cash flow methodologies or similar techniques. The inputs used in these valuations include benchmark yields, reported trades, new issue data, broker dealer quotes, and collateral performance. If there is at least one significant model assumption or input that is not observable, these securities are classified as Level 3 within the fair value hierarchy; otherwise, they are classified as Level 2.

Loans Held for Sale

The Company has elected the fair value option to account for originated closed loans intended for sale. The fair value is measured on an individual loan basis using quoted market prices and when not available, comparable market value or discounted cash flow analysis may be utilized. These assets are typically classified as Level 2.

Derivative Instruments

Derivatives

The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilizes. The Company incorporates credit valuation adjustments to appropriately reflect nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings. Additionally, in conjunction with fair value measurement guidance, the Company has made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Although the Company has determined that the majority of the inputs used to value its interest rate derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its interest rate derivatives and risk participation agreements may also utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. However, as of September 30, 2021 and December 31, 2020, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are properly classified as Level 2.

Mortgage Derivatives

The fair value of mortgage derivatives is determined based on current market prices for similar assets in the secondary market and, therefore, classified as Level 2 within the fair value hierarchy.

Individually Assessed Collateral Dependent Loans

In accordance with the CECL standard, expected credit losses on individually assessed loans deemed to be collateral dependent are valued based upon the lower of amortized cost or fair value of the underlying collateral less costs to sell.  The inputs used in the appraisals of the collateral are not always observable, and in such cases the loans may be classified as Level 3 within the fair value hierarchy; otherwise, they are classified as Level 2.

Other Real Estate Owned and Other Foreclosed Assets

Other Real Estate Owned ("OREO") and Other Foreclosed Assets are valued at the lower of cost or fair value of the property, less estimated costs to sell. The fair values are generally estimated based upon recent appraisal values of the property less costs to sell the property. Certain inputs used in appraisals are not always observable, and therefore OREO and Other Foreclosed Assets may be classified as Level 3 within the fair value hierarchy.

Goodwill and Other Intangible Assets

Goodwill and other intangible assets are subject to impairment testing. The Company conducts an annual impairment test of goodwill in the third quarter of each year, or more frequently if necessary. Other intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. To estimate the fair value of goodwill and, if necessary, other intangible assets, the Company utilizes both a comparable analysis of relevant price multiples in recent market transactions and a discounted cash flow analysis. Both valuation models require a significant degree of management judgment. In the event the fair value as determined by the valuation model is less than the carrying value, the intangibles may be impaired. If the impairment testing resulted in impairment, the Company would classify the impaired goodwill and other intangible assets subjected to nonrecurring fair value adjustments as Level 3.

Assets and liabilities measured at fair value on a recurring and nonrecurring basis were as follows as of the dates indicated:

			Fair Value Measurements at Reporting Date Using
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	September 30, 2021
	(Dollars in thousands)
Recurring fair value measurements
Assets
Trading securities	$	3,504	$	3,504	$	—	$	—
Equity securities	22,794		22,794		—		—
Securities available for sale
U.S. government agency securities	217,345		—		217,345		—
U.S. treasury securities	770,002		—		770,002		—
Agency mortgage-backed securities	297,219		—		297,219		—
Agency collateralized mortgage obligations	86,487		—		86,487		—
State, county, and municipal securities	288		—		288		—
Single issuer trust preferred securities issued by banks and insurers	491		—		491		—
Pooled trust preferred securities issued by banks and insurers	1,010		—		1,010		—
Small business administration pooled securities	54,368		—		54,368		—
Loans held for sale	33,553		—		33,553		—
Derivative instruments	116,358		—		116,358		—
Liabilities
Derivative instruments	83,150		—		83,150		—
Total recurring fair value measurements	$	1,520,269	$	26,298	$	1,493,971	$	—
Nonrecurring fair value measurements
Assets
Individually assessed collateral dependent loans (1)	$	34,799	$	—	$	—	$	34,799
Total nonrecurring fair value measurements	$	34,799	$	—	$	—	$	34,799

			Fair Value Measurements at Reporting Date Using
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	December 31, 2020
	(Dollars in thousands)
Recurring fair value measurements
Assets
Trading securities	$	2,838	$	2,838	$	—	$	—
Equity securities	22,107		22,107		—		—
Securities available for sale
U.S. government agency securities	24,116		—		24,116		—
Agency mortgage-backed securities	233,629		—		233,629		—
Agency collateralized mortgage obligations	91,683		—		91,683		—
State, county, and municipal securities	807		—		807		—
Single issuer trust preferred securities issued by banks and insurers	488		—		488		—
Pooled trust preferred securities issued by banks and insurers	1,056		—		1,056		—
Small business administration pooled securities	61,081		—		61,081		—
Loans held for sale	58,104		—		58,104		—
Derivative instruments	187,399		—		187,399		—
Liabilities
Derivative instruments	134,064		—		134,064		—
Total recurring fair value measurements	$	549,244	$	24,945	$	524,299	$	—
Nonrecurring fair value measurements:
Assets
Individually assessed collateral dependent loans (1)	$	31,510	$	—	$	—	$	31,510
Total nonrecurring fair value measurements	$	31,510	$	—	$	—	$	31,510

(1) The fair value of individually assessed collateral dependent loans is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of these possible adjustments may vary.

The estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below as of the dates indicated:

					Fair Value Measurements at Reporting Date Using
	Carrying Value		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	September 30, 2021
	(Dollars in thousands)
Financial assets
Securities held to maturity (a)
U.S. government agency securities	$	33,422	$	33,295	$	—	$	33,295	$	—
U.S. treasury securities	$	3,007	$	3,024	$	—	$	3,024	$	—
Agency mortgage-backed securities	352,483		360,613		—		360,613		—
Agency collateralized mortgage obligations	451,151		452,038		—		452,038		—
Single issuer trust preferred securities issued by banks	1,500		1,508		—		1,508		—
Small business administration pooled securities	23,686		24,828		—		24,828		—
Loans, net of allowance for credit losses (b)	8,680,968		8,663,615		—		—		8,663,615
Federal Home Loan Bank stock (c)	8,666		8,666		—		8,666		—
Cash surrender value of life insurance policies (d)	244,573		244,573		—		244,573		—
Financial liabilities
Deposit liabilities, other than time deposits (e)	$	11,474,578	$	11,474,578	$	—	$	11,474,578	$	—
Time certificates of deposits (f)	785,562		786,514		—		786,514		—
Federal Home Loan Bank borrowings (f)	25,675		25,679		—		25,679		—
Long-term borrowings (f)	18,750		18,571		—		18,571		—
Junior subordinated debentures (g)	62,853		68,098		—		68,098		—
Subordinated debentures (f)	49,767		46,403		—		—		46,403

					Fair Value Measurements at Reporting Date Using
	Carrying Value		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	December 31, 2020
	(Dollars in thousands)
Financial assets
Securities held to maturity (a)
U.S. treasury securities	$	4,017	$	4,077	$	—	$	4,077	$	—
Agency mortgage-backed securities	356,085		374,121		—		374,121		—
Agency collateralized mortgage obligations	335,993		344,119		—		344,119		—
Single issuer trust preferred securities issued by banks	1,500		1,498		—		1,498		—
Small business administration pooled securities	26,917		28,362		—		28,362		—
Loans, net of allowance for credit losses (b)	9,247,964		9,253,381		—		—		9,253,381
Federal Home Loan Bank stock (c)	10,250		10,250		—		10,250		—
Cash surrender value of life insurance policies (d)	200,525		200,525		—		200,525		—
Financial liabilities
Deposit liabilities, other than time deposits (e)	$	10,042,541	$	10,042,541	$	—	$	10,042,541	$	—
Time certificates of deposits (f)	950,629		955,598		—		955,598		—
Federal Home Loan Bank borrowings (f)	35,740		35,885		—		35,885		—
Long-term borrowings (f)	32,773		32,033		—		32,033		—
Junior subordinated debentures (g)	62,851		70,238		—		70,238		—
Subordinated debentures (f)	49,696		46,486		—		—		46,486

(a)The fair values presented are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments and/or discounted cash flow analysis.

(b)Fair value of loans is measured using the exit price valuation method, determined primarily by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities or cash flows, while incorporating liquidity and credit assumptions. Additionally, this amount excludes individually assessed collateral dependent loans, which are deemed to be marked to fair value on a nonrecurring basis.

(c)Federal Home Loan Bank stock has no quoted market value and is carried at cost; therefore the carrying amount approximates fair value.

(d)Cash surrender value of life insurance policies is recorded at its cash surrender value (or the amount that can be realized upon surrender of the policy), therefore, carrying amount approximates fair value.

(e)Fair value of demand deposits, savings and interest checking accounts and money market deposits is the amount payable on demand at the reporting date.

(f)Fair value was determined by discounting anticipated future cash payments using rates currently available for instruments with similar remaining maturities.

(g)Fair value was determined based upon market prices of securities with similar terms and maturities.

This summary excludes certain financial assets and liabilities for which the carrying value approximates fair value. For financial assets, these may include cash and due from banks, federal funds sold and short-term investments. For financial liabilities, these may include federal funds purchased. These instruments would all be considered to be classified as Level 1 within the fair value hierarchy. Also excluded from the summary are financial instruments measured at fair value on a recurring and nonrecurring basis, as previously described.

The Company considers its current use of financial instruments to be the highest and best use of the instruments.

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Revenue Recognition (Notes)

9 Months Ended

Sep. 30, 2021

Revenue Recognition [Abstract]

Revenue from Contract with Customer [Text Block]

REVENUE RECOGNITION

A portion of the Company's noninterest income is derived from contracts with customers, and as such, the revenue recognized depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company considers the terms of the contract and all relevant facts and circumstances when applying this guidance. To ensure its alignment with this core principle, the Company measures revenue and the timing of recognition by applying the following five steps:

1.Identify the contract(s) with customers

2.Identify the performance obligations

3.Determine the transaction price

4.Allocate the transaction price to the performance obligations

5.Recognize revenue when (or as) the entity satisfies a performance obligation

The Company has disaggregated its revenue from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The following table presents the revenue streams that the Company has disaggregated as of the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30 2021		September 30 2020		September 30 2021		September 30 2020
	(Dollars in thousands)
Deposit account fees (inclusive of cash management fees)	$	4,298	$	3,428	$	11,704	$	11,227
Interchange fees	2,223		2,025		6,267		10,665
ATM fees	817		708		2,177		1,872
Investment management - wealth management and advisory services	8,147		6,997		23,576		20,113
Investment management - retail investments and insurance revenue	1,027		574		2,774		1,583
Merchant processing income	365		330		1,024		1,000
Credit card income	334		216		883		550
Other noninterest income	1,362		905		3,732		2,651
Total noninterest income in-scope of ASC 606	18,573		15,183		52,137		49,661
Total noninterest income out-of-scope of ASC 606	7,884		14,164		24,533		34,311
Total noninterest income	$	26,457	$	29,347	$	76,670	$	83,972

In each of the revenue streams identified above, there were no significant judgments made in determining or allocating the transaction price, as the consideration and service requirements are generally explicitly identified in the associated contracts. Additional information related to each of the revenue streams is further noted below.

Deposit Account Fees

The Company offers various deposit account products to its customers governed by specific deposit agreements applicable to either personal customers or business customers. These agreements identify the general conditions and obligations of both parties, and include standard information regarding deposit account related fees.

Deposit account services include providing access to deposit accounts as well as access to the various deposit transactional services of the Company. These transactional services are primarily those that are identified in the standard fee schedule, and include, but are not limited to, services such as overdraft protection, wire transfer, and check collection. Revenue is recognized in conjunction with the various services being provided. For example, the Company may assess monthly fixed service fees associated with the customer having access to a deposit account, which can vary depending on the account type and daily account balance. In addition, the Company may also assess separate fixed fees associated with and at the time specific transactions are entered into by the customer. As such, the Company considers its performance obligations to be met concurrently with providing the account access or completing the requested deposit transaction.

Cash Management

Cash management services are a subset of the deposit account fees revenue stream. These services primarily include ACH transaction processing, positive pay and remote deposit services. These services are also governed by separate agreements entered into with the customer. The fee arrangement for these services is structured to assess fees under one of two scenarios, either a per transaction fee arrangement or an earnings credit analysis arrangement. Under the per transaction fee arrangement, fixed fees are assessed concurrently with customers executing the transactions, and as such, the Company considers its performance obligations to be met concurrently with completing the requested transaction. Under the earnings credit analysis arrangement, the Company provides a monthly earnings credit to the customer that is negotiated and determined based on various factors. The credit is then available to absorb the per transaction fees that are assessed on the customer's deposit account activity for the month. Any amount of the transactional fees in excess of the earnings credit is recognized as revenue in that month.

Interchange Fees

The Company earns interchange revenue from its issuance of credit and debit cards granted through its membership in various card payment networks. The Company provides credit cards and debit cards to its customers which are authorized and settled through these payment networks, and in exchange, the Company earns revenue as determined by each payment network's interchange program. The revenue is recognized concurrently with the settlement of card transactions within each network.

ATM Fees

The Company deploys automated teller machines (ATMs) as part of its overall branch network. Certain transactions performed at the ATMs require customers to acknowledge and pay a fee for the requested service. Certain ATM fees are disclosed in the deposit account agreement fee schedules, whereas those assessed to non-Rockland Trust deposit holders are solely determined during the transaction at the machine.

The ATM fee is a fixed dollar per transaction amount, and as such, is recognized concurrently with the overall daily processing and settlement of the ATM activity.

Investment Management - Wealth Management and Advisory Services

The Company offers investment management and trust services to individuals, institutions, small businesses and charitable institutions. Each investment management product is governed by its own contract along with a separate identifiable fee schedule unique to that product. The Company also offers additional services, such as estate settlement, financial planning, tax services and other special services quoted at the client's request.

The asset management and/or custody fees are based upon a percentage of the monthly valuation of the principal assets in the customer's account, whereas fees for additional or special services are fixed in nature and are charged as services are rendered. As the fees are dependent on assets under management, which are susceptible to market factors outside of the Company's control, this variable consideration is constrained and therefore no revenue is estimated at contract initiation. As such, all revenue is recognized in correlation to the monthly management fee determinations or as transactional services are provided. Due to the fact that payments are primarily made subsequent to the valuation period, the Company records a receivable for revenue earned but not received. The following table provides the amount of investment management revenue earned but not received as of the dates indicated:

	September 30, 2021		December 31, 2020
	(Dollars in thousands)
Receivables, included in other assets	$	5,292	$	4,636

Investment Management - Retail Investments and Insurance Revenue

The Company offers the sale of mutual fund shares, unit investment trust shares, general securities, fixed and variable annuities and life insurance products through registered representatives who are both employed by the Company and licensed and contracted with various broker general agents to offer these products to the Company’s customer base. As such, the Company performs these services as an agent and earns a fixed commission on the sales of these products and services. To a lesser degree, production bonus commissions can also be earned based upon the Company meeting certain volume thresholds.

In general, the Company recognizes commission revenue at the point of sale, and for certain insurance products, may also earn and recognize annual residual commissions commensurate with annual premiums being paid.

Merchant Processing Income

The Company refers customers to third party merchant processing partners in exchange for commission and fee income. The income earned is comprised of multiple components, including a fixed referral fee per each referred customer, a rebate amount determined primarily as a percentage of net revenue earned by the third party from services provided to each referred customer, and overall production bonus commissions if certain new account production thresholds are met. Merchant processing income is recognized in conjunction with either completing the referral to earn the fixed fee amount or as the merchant activity is processed to derive the Company's rebate and/or production bonus amounts.

Credit Card Income

The Company provides consumer and business credit card solutions to its customers by soliciting new accounts on behalf of a third party credit card provider in exchange for a fee. The income earned is comprised of new account incentive payments as well as a percentage of interchange income earned by the third party provider offering the consumer and business purpose revolving credit accounts. The credit card income is recognized in conjunction with the establishment of each new credit card member or as the interchange is earned by the third party in connection with net purchase transactions made by the credit card member.

Other Noninterest Income

The Company earns various types of other noninterest income that fall within the scope of the new revenue recognition rules, and have been aggregated into one general revenue stream in the table noted above. This amount includes, but is not limited to, the following types of revenue with customers:

Safe Deposit Rent

    The Company rents out the use of safe deposit boxes to its customers, which can be accessed when the bank is open for business. The safe deposit box rental fee is paid upfront and is recognized as revenue ratably over the annual term of the contract.

1031 Exchange Fee Revenue

    The Company provides like-kind exchange services pursuant to Section 1031 of the Internal Revenue Code. Fee income is recognized in conjunction with completing the exchange transactions.

Foreign Currency

    The Company earns fee income associated with various transactions related to foreign currency product offerings, including foreign currency bank notes and drafts and foreign currency wires. The majority of this income is derived from commissions earned related to customers executing the above mentioned foreign currency transactions through arrangements with third party correspondents.

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Comprehensive Income/Loss

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

COMPREHENSIVE INCOME/LOSS

OTHER COMPREHENSIVE INCOME (LOSS)

The following tables present a reconciliation of the changes in the components of other comprehensive income (loss) for the periods indicated, including the amount of income tax (expense) benefit allocated to each component of other comprehensive income (loss):

	Three Months Ended September 30, 2021						Nine Months Ended September 30, 2021
	Pre Tax Amount		Tax (Expense) Benefit		After Tax Amount		Pre Tax Amount		Tax (Expense) Benefit		After Tax Amount
	(Dollars in thousands)
Change in fair value of securities available for sale	$	(10,337)	$	2,440	$	(7,897)	$	(15,589)	$	3,711	$	(11,878)
Less: net security losses reclassified into other noninterest expense	—		—		—		—		—		—
Net change in fair value of securities available for sale	(10,337)		2,440		(7,897)		(15,589)		3,711		(11,878)
Change in fair value of cash flow hedges	84		(23)		61		(2,214)		624		(1,590)
Less: net cash flow hedge gains reclassified into interest income or interest expense	4,791		(1,347)		3,444		13,869		(3,900)		9,969
Net change in fair value of cash flow hedges	(4,707)		1,324		(3,383)		(16,083)		4,524		(11,559)
Net unamortized gain related to defined benefit pension and other postretirement adjustments arising during the period	—		—		—		653		(184)		469
Amortization of net actuarial losses	346		(97)		249		1,037		(291)		746
Amortization of net prior service costs	44		(13)		31		131		(37)		94
Net change in other comprehensive income for defined benefit postretirement plans (1)	390		(110)		280		1,821		(512)		1,309
Total other comprehensive loss	$	(14,654)	$	3,654	$	(11,000)	$	(29,851)	$	7,723	$	(22,128)

	Three Months Ended September 30, 2020						Nine Months Ended September 30, 2020
	Pre Tax Amount		Tax (Expense) Benefit		After Tax Amount		Pre Tax Amount		Tax (Expense) Benefit		After Tax Amount
	(Dollars in thousands)
Change in fair value of securities available for sale	$	(857)	$	148	$	(709)	$	13,598	$	(3,265)	$	10,333
Less: net security losses reclassified into other noninterest expense	—		—		—		—		—		—
Net change in fair value of securities available for sale	(857)		148		(709)		13,598		(3,265)		10,333
Change in fair value of cash flow hedges	(143)		41		(102)		37,674		(10,597)		27,077
Less: net cash flow hedge gains reclassified into interest income or interest expense	4,339		(1,220)		3,119		9,901		(2,784)		7,117
Less: loss on termination of hedge reclassified into noninterest expense	(684)		192		(492)		(684)		192		(492)
Net change in fair value of cash flow hedges	(3,798)		1,069		(2,729)		28,457		(8,005)		20,452
Net unamortized loss related to defined benefit pension and other postretirement adjustments arising during the period	(2)		1		(1)		(1,392)		392		(1,000)
Amortization of net actuarial losses	245		(69)		176		736		(207)		529
Amortization of net prior service costs	69		(19)		50		207		(58)		149
Net change in other comprehensive income for defined benefit postretirement plans (1)	312		(87)		225		(449)		127		(322)
Total other comprehensive income (loss)	$	(4,343)	$	1,130	$	(3,213)	$	41,606	$	(11,143)	$	30,463

(1)The amortization of prior service costs is included in the computation of net periodic pension cost as disclosed in Note 15 "Employee Benefit Plans" within the Notes to the Consolidated Financial Statements included in Item 8 of the Company's 2020 Form 10-K.

Information on the Company’s accumulated other comprehensive income (loss), net of tax, is comprised of the following components as of the dates indicated:

	Unrealized Gain (Loss) on Securities		Unrealized Gain (Loss) on Cash Flow Hedge		Defined Benefit Postretirement Plans		Accumulated Other Comprehensive Income (Loss)
	(Dollars in thousands)
	2021
Beginning balance: January 1, 2021	$	13,255	$	33,276	$	(5,836)	$	40,695
Net change in other comprehensive income (loss)	(11,878)		(11,559)		1,309		(22,128)
Ending balance: September 30, 2021	$	1,377	$	21,717	$	(4,527)	$	18,567
	2020
Beginning balance: January 1, 2020	$	4,398	$	16,479	$	(2,708)	$	18,169
Net change in other comprehensive income (loss)	10,333		20,452		(322)		30,463
Ending balance: September 30, 2020	$	14,731	$	36,931	$	(3,030)	$	48,632

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Commitments and contingencies

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

COMMITMENTS AND CONTINGENCIES

Financial Instruments with Off-Balance Sheet Risk

    In the normal course of business, the Company enters into various transactions to meet the financing needs of its customers, which, in accordance with GAAP, are not included in its consolidated balance sheets. These transactions include commitments to extend credit and standby letters of credit, and loan exposures with recourse, which involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Company minimizes its exposure to loss under these commitments by subjecting them to credit approval and monitoring procedures.

    The Company enters into contractual commitments to extend credit, normally with fixed expiration dates or termination clauses, at specified rates and for specific purposes. Substantially all of these commitments to extend credit are contingent upon customers maintaining specific credit standards at the time of loan funding.

The Company has certain loan exposures for which there is recourse. These loan relationships could require the Company to repurchase or cover certain losses per agreements for certain loans that are either sold or referred to third parties.

    Standby letters of credit are written conditional commitments issued to guarantee the performance of a customer to a third party. In the event the customer does not perform in accordance with the terms of the agreement with the third party, the Company would be required to fund the commitment. The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount of the commitment. If the commitment were funded, the Company would be entitled to seek recovery from the customer. The Company’s policies generally require that standby letter of credit arrangements contain security and debt covenants similar to those contained in loan agreements.

    The fees collected in connection with the issuance of standby letters of credit are representative of the fair value of the Company's obligation undertaken in issuing the guarantee. In accordance with applicable accounting standards related to guarantees, fees collected in connection with the issuance of standby letters of credit are deferred. The fees are then recognized in income proportionately over the life of the standby letter of credit agreement. The deferred standby letter of credit fees represent the fair value of the Company's potential obligations under the standby letter of credit guarantees.

    The following table summarizes the above financial instruments at the dates indicated:

	September 30, 2021		December 31, 2020
	(Dollars in thousands)
Commitments to extend credit	$	3,591,456	$	3,301,692
Standby letters of credit	20,081		20,686
Deferred standby letter of credit fees	146		164
Loan exposures with recourse	208,833		303,265

Lease Commitments

The Company leases office space, space for ATM locations, and certain branch locations under noncancellable operating leases. Several of these leases contain renewal options to extend lease terms for a period of 3 to 10 years. During the fourth quarter of 2020, the Company recognized $4.8 million in lease termination costs associated with two branch closure decisions. These termination fees were paid by the Company during the second quarter of 2021.

There has been no significant change in the future minimum lease payments payable by the Company since December 31, 2020. See the Company's 2020 Form 10-K for information regarding leases and other commitments.

Other Contingencies

At September 30, 2021, the Bank was involved in pending lawsuits that arose in the ordinary course of business. Management has reviewed these pending lawsuits with legal counsel and has taken into consideration the view of counsel as to their outcome. In the opinion of management, the final disposition of pending lawsuits is not expected to have a material adverse effect on the Company’s financial position or results of operations.

Historically, the Bank was required to maintain certain reserve requirements of vault cash and/or deposits with the Federal Reserve Bank of Boston, however the reserve requirement was reduced to zero by the Federal Reserve during the first quarter of 2020 in response to the COVID-19 pandemic, and as such, there was no reserve requirement at September 30, 2021 or at December 31, 2020.

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Subsequent Events	9 Months Ended
	Sep. 30, 2021
Subsequent Events [Abstract]
Subsequent Events [Text Block]	SUBSEQUENT EVENTS On October 29, 2021, the Company sold one large commercial and industrial loan relationship, the aggregate balance of which totaled $15.8 million as of September 30, 2021 and was included within non-performing assets. The Company expects to recognize a gain of approximately $2.5 million based on proceeds from the sale.

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Basis of Presentation Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Accounting Policy

Independent Bank Corp. (the “Company”) is a state chartered, federally registered bank holding company, incorporated in 1985. The Company is the sole stockholder of Rockland Trust Company (“Rockland Trust” or the “Bank”), a Massachusetts trust company chartered in 1907.

As announced on April 22, 2021, the Company has signed a definitive merger agreement under which the Company will acquire Meridian Bancorp, Inc. (“Meridian”), with the Company as the surviving entity, and East Boston Savings Bank will merge with and into Rockland trust. The Company anticipates the merger to close during the fourth quarter of 2021.

All material intercompany balances and transactions have been eliminated in consolidation. Certain previously reported amounts have been reclassified to conform to the current year’s presentation.

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation of the financial statements, primarily consisting of normal recurring adjustments, have been included. Results for the nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021 or any other interim period.

For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (the "2020 Form 10-K").

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Securities (Tables)

9 Months Ended

Sep. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Schedule of Equity securities gains and losses [Table Text Block]

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2021		2020		2021		2020
	Dollars in thousands
Net gains (losses) recognized during the period on equity securities	$	(169)	$	308	695		(107)
Less: net gains recognized during the period on equity securities sold during the period	50		—		191		6
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date	$	(219)	$	308	$	504	$	(113)

Debt Securities, Available-for-sale [Table Text Block]

The following table summarizes the amortized cost, allowance for credit losses, and fair value of available for sale securities and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) as of the dates indicated:

	September 30, 2021										December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for credit losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for credit losses		Fair Value
	(Dollars in thousands)
Available for sale securities
U.S. government agency securities	$	217,613	$	1,511	$	(1,779)	$	—	$	217,345	$	22,476	$	1,640	$	—	$	—	$	24,116
U.S. treasury securities	774,492		—		(4,490)		—		770,002		—		—		—		—		—
Agency mortgage-backed securities	294,387		6,120		(3,288)		—		297,219		224,293		9,337		(1)		—		233,629
Agency collateralized mortgage obligations	85,076		1,933		(522)		—		86,487		88,687		3,083		(87)		—		91,683
State, county, and municipal securities	276		12		—		—		288		790		17		—		—		807
Single issuer trust preferred securities issued by banks	489		2		—		—		491		489		—		(1)		—		488
Pooled trust preferred securities issued by banks and insurers	1,341		—		(331)		—		1,010		1,429		—		(373)		—		1,056
Small business administration pooled securities	51,718		2,650		—		—		54,368		57,289		3,792		—		—		61,081
Total available for sale securities	$	1,425,392	$	12,228	$	(10,410)	$	—	$	1,427,210	$	395,453	$	17,869	$	(462)	$	—	$	412,860

Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value [Table Text Block]

These available for sale securities are aggregated by major security type and length of time that individual securities have been in a continuous unrealized loss position:

	September 30, 2021
		Less than 12 months				12 months or longer				Total
	# of  holdings	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
U.S. government agency securities	5	$	138,262	$	(1,779)	$	—	$	—	$	138,262	$	(1,779)
U.S. treasury securities	16	770,002		(4,490)		—		—		770,002		(4,490)
Agency mortgage-backed securities	9	131,548		(3,287)		304		(1)		131,852		(3,288)
Agency collateralized mortgage obligations	1	22,994		(522)		—		—		22,994		(522)
Pooled trust preferred securities issued by banks and insurers	1	—		—		1,010		(331)		1,010		(331)
Total impaired available for sale securities	32	$	1,062,806	$	(10,078)	$	1,314	$	(332)	$	1,064,120	$	(10,410)
	December 31, 2020
		Less than 12 months				12 months or longer				Total
	# of  holdings	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(Dollars in thousands)
Agency mortgage-backed securities	3	$	437	$	(1)	$	—	$	—	$	437	$	(1)
Agency collateralized mortgage obligations	2	23,323		(87)		—		—		23,323		(87)
Single issuer trust preferred securities issued by banks and insurers	1	488		(1)		—		—		488		(1)
Pooled trust preferred securities issued by banks and insurers	1	—		—		1,056		(373)		1,056		(373)
Total impaired available for sale securities	7	$	24,248	$	(89)	$	1,056	$	(373)	$	25,304	$	(462)

Debt Securities, Held-to-maturity [Table Text Block]

The following table summarizes the amortized cost, fair value and allowance for credit losses of held to maturity securities and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) as of the dates indicated:

	September 30, 2021										December 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for credit losses		Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for credit losses		Fair Value
	(Dollars in thousands)
U.S. government agency securities	$	33,422	$	—	$	(127)	$	—	$	33,295	$	—	$	—	$	—	$	—	$	—
U.S. treasury securities	3,007		17		—		—		3,024		4,017		60		—		—		4,077
Agency mortgage-backed securities	352,483		10,911		(2,781)		—		360,613		356,085		18,036		—		—		374,121
Agency collateralized mortgage obligations	451,151		5,089		(4,202)		—		452,038		335,993		8,466		(340)		—		344,119
Single issuer trust preferred securities issued by banks	1,500		8		—		—		1,508		1,500		—		(2)		—		1,498
Small business administration pooled securities	23,686		1,142		—		—		24,828		26,917		1,445		—		—		28,362
Total held to maturity securities	$	865,249	$	17,167	$	(7,110)	$	—	$	875,306	$	724,512	$	28,007	$	(342)	$	—	$	752,177

Schedule of contractual maturities of securities [Table Text Block]

A schedule of the contractual maturities of available for sale and held to maturity securities as of September 30, 2021 is presented below:

	Due in one year or less				Due after one year to five years				Due after five to ten years				Due after ten years				Total
	Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(Dollars in thousands)
Available for sale securities
U.S. government agency securities	$	10,000	$	10,066	$	31,422	$	31,275	$	176,191	$	176,004	$	—	$	—	$	217,613	$	217,345
U.S. treasury securities	—		—		541,282		538,755		233,210		231,247		—		—		774,492		770,002
Agency mortgage-backed securities	2,273		2,292		81,194		83,434		88,655		87,152		122,265		124,341		294,387		297,219
Agency collateralized mortgage obligations	—		—		—		—		—		—		85,076		86,487		85,076		86,487
State, county, and municipal securities	85		85		—		—		191		203		—		—		276		288
Single issuer trust preferred securities issued by banks	—		—		—		—		—		—		489		491		489		491
Pooled trust preferred securities issued by banks and insurers	—		—		—		—		—		—		1,341		1,010		1,341		1,010
Small business administration pooled securities	—		—		—		—		—		—		51,718		54,368		51,718		54,368
Total available for sale securities	$	12,358	$	12,443	$	653,898	$	653,464	$	498,247	$	494,606	$	260,889	$	266,697	$	1,425,392	$	1,427,210
Held to maturity securities
U.S. government agency securities	$	—	$	—	$	33,422	$	33,295	$	—	$	—	$	—	$	—	$	33,422	$	33,295
U.S. treasury securities	3,007		3,024		—		—		—		—		—		—		3,007		3,024
Agency mortgage-backed securities	—		—		3,482		3,677		125,204		125,407		223,797		231,529		352,483		360,613
Agency collateralized mortgage obligations	—		—		—		—		—		—		451,151		452,038		451,151		452,038
Single issuer trust preferred securities issued by banks	—		—		—		—		1,500		1,508		—		—		1,500		1,508
Small business administration pooled securities	—		—		—		—		—		—		23,686		24,828		23,686		24,828
Total held to maturity securities	$	3,007	$	3,024	$	36,904	$	36,972	$	126,704	$	126,915	$	698,634	$	708,395	$	865,249	$	875,306
Total	$	15,365	$	15,467	$	690,802	$	690,436	$	624,951	$	621,521	$	959,523	$	975,092	$	2,290,641	$	2,302,516

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

9 Months Ended

Sep. 30, 2021

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 September 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	$	17,032	$	44,325	$	4,865	$	3,612	$	12,014	$	20,087	$	422	$	102,357
Charge-offs	(1)		—		—		(83)		—		—		(248)		(332)
Recoveries	1		—		—		50		—		49		121		221
Provision for credit loss expense	(1,018)		(6,527)		(397)		88		(967)		(1,268)		89		(10,000)
Ending balance (1)	$	16,014	$	37,798	$	4,468	$	3,667	$	11,047	$	18,868	$	384	$	92,246
	Three Months Ended September 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	$	25,662	$	36,956	$	4,501	$	4,561	$	15,046	$	24,860	$	590	$	112,176
Charge-offs	(185)		(3,885)		—		(49)		—		—		(185)		(4,304)
Recoveries	1		9		—		2		1		21		219		253
Provision for credit loss expense	2,741		6,306		709		79		(884)		(1,309)		(142)		7,500
Ending balance (1)	$	28,219	$	39,386	$	5,210	$	4,593	$	14,163	$	23,572	$	482	$	115,625
	Nine Months Ended September 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	(3,474)		—		—		(184)		—		(69)		(772)		(4,499)
Recoveries	100		57		—		65		1		107		523		853
Provision for credit loss expense	(1,698)		(7,268)		(929)		(1,309)		(3,229)		(3,230)		163		(17,500)
Ending balance (1)	$	16,014	$	37,798	$	4,468	$	3,667	$	11,047	$	18,868	$	384	$	92,246
	Nine Months Ended September 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	(185)		(3,885)		—		(194)		—		(142)		(1,342)		(5,748)
Recoveries	47		9		—		8		2		174		873		1,113
Provision for credit loss expense	12,698		23,038		2,809		2,538		470		10,633		314		52,500
Ending balance (1)	$	28,219	$	39,386	$	5,210	$	4,593	$	14,163	$	23,572	$	482	$	115,625

(1)Balances of accrued interest receivable excluded from amortized cost and the calculation of allowance for credit losses amounted to $29.1 million and $36.7 million as of September 30, 2021 and September 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:

	September 30, 2021
	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving converted to Term		Total (1)
	(Dollars in thousands)
Commercial and industrial
Pass (2)	$	590,532	$	185,706	$	97,095	$	74,381	$	15,175	$	16,731	$	605,718	$	66	$	1,585,404
Potential weakness	1,338		9,035		3,286		1,672		980		1,632		10,262		—		28,205
Definite weakness - loss unlikely	16,597		332		793		1,034		2,678		214		5,452		—		27,100
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	608,467	$	195,073	$	101,174	$	77,087	$	18,833	$	18,577	$	621,432	$	66	$	1,640,709
Commercial real estate
Pass	$	699,565	$	1,019,453	$	606,645	$	347,874	$	442,306	$	794,263	$	17,068	$	—	$	3,927,174
Potential weakness	22,106		29,091		51,976		14,628		21,350		82,655		13,615		—		235,421
Definite weakness - loss unlikely	9,331		16,336		3,399		13,657		9,762		6,179		—		—		58,664
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	$	731,002	$	1,064,880	$	662,020	$	376,159	$	473,418	$	883,097	$	30,683	$	—	$	4,221,259
Commercial construction
Pass	$	127,945	$	216,573	$	82,559	$	22,851	$	22,873	$	6,505	$	16,424	$	2,134	$	497,864
Potential weakness	—		12,991		—		—		—		—		—		—		12,991
Definite weakness - loss unlikely	—		4,560		—		—		—		—		—		—		4,560
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial construction	$	127,945	$	234,124	$	82,559	$	22,851	$	22,873	$	6,505	$	16,424	$	2,134	$	515,415
Small business
Pass	$	40,736	$	38,804	$	22,075	$	14,241	$	10,675	$	21,809	$	32,679	$	—	$	181,019
Potential weakness	14		—		383		200		5		174		627		—		1,403
Definite weakness - loss unlikely	138		637		41		26		10		284		580		—		1,716
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total small business	$	40,888	$	39,441	$	22,499	$	14,467	$	10,690	$	22,267	$	33,886	$	—	$	184,138
Residential real estate
Pass	$	277,949	$	184,974	$	92,723	$	97,915	$	102,581	$	463,397	$	—	$	—	$	1,219,539
Default	—		123		—		1,024		—		2,163		—		—		3,310
Total residential real estate	$	277,949	$	185,097	$	92,723	$	98,939	$	102,581	$	465,560	$	—	$	—	$	1,222,849
Home equity
Pass	$	58,897	$	68,629	$	42,083	$	37,644	$	41,792	$	117,488	$	628,575	$	3,575	$	998,683
Default	—		—		—		—		—		33		1,717		35		1,785
Total home equity	$	58,897	$	68,629	$	42,083	$	37,644	$	41,792	$	117,521	$	630,292	$	3,610	$	1,000,468
Other consumer
Pass	$	307	$	347	$	244	$	78	$	500	$	5,338	$	16,359	$	—	$	23,173
Default	—		—		—		—		—		—		2		—		2
Total other consumer	$	307	$	347	$	244	$	78	$	500	$	5,338	$	16,361	$	—	$	23,175
Total	$	1,845,455	$	1,787,591	$	1,003,302	$	627,225	$	670,687	$	1,518,865	$	1,349,078	$	5,810	$	8,808,013

	September 30, 2020
	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving converted to Term		Total (1)
	(Dollars in thousands)
Commercial and industrial
Pass (2)	$	1,012,974	$	153,137	$	107,318	$	34,826	$	23,065	$	22,334	$	601,937	$	2,577	$	1,958,168
Potential weakness	2,560		2,302		7,833		4,573		1,219		318		15,248		50		34,103
Definite weakness - loss unlikely	2,732		1,553		22,748		5,500		2,483		1,419		33,496		—		69,931
Partial loss probable	—		—		—		—		—		143		—		—		143
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial and industrial	$	1,018,266	$	156,992	$	137,899	$	44,899	$	26,767	$	24,214	$	650,681	$	2,627	$	2,062,345
Commercial real estate
Pass	$	753,415	$	859,548	$	512,371	$	587,345	$	399,442	$	751,629	$	39,998	$	16,341	$	3,920,089
Potential weakness	20,639		15,957		20,313		7,941		27,253		47,875		—		—		139,978
Definite weakness - loss unlikely	4,261		2,265		10,092		21,081		2,170		6,605		—		—		46,474
Partial loss probable	—		—		18,923		—		—		—		—		—		18,923
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial real estate	$	778,315	$	877,770	$	561,699	$	616,367	$	428,865	$	806,109	$	39,998	$	16,341	$	4,125,464
Commercial construction
Pass	$	182,291	$	196,420	$	73,298	$	66,406	$	—	$	6,750	$	31,372	$	1,077	$	557,614
Potential weakness	—		9,352		5,037		—		—		—		328		—		14,717
Definite weakness - loss unlikely	—		—		1,003		—		—		—		—		—		1,003
Partial loss probable	—		—		—		—		—		—		—		—		—
Definite loss	—		—		—		—		—		—		—		—		—
Total commercial construction	$	182,291	$	205,772	$	79,338	$	66,406	$	—	$	6,750	$	31,700	$	1,077	$	573,334
Small business
Pass	$	27,457	$	28,766	$	20,806	$	14,627	$	14,528	$	22,644	$	34,569	$	—	$	163,397
Potential weakness	—		10		16		10		755		232		736		—		1,759
Definite weakness - loss unlikely	184		408		78		170		98		723		786		—		2,447
Partial loss probable	—		—		—		—		—		—		29		—		29
Definite loss	—		—		—		—		—		—		—		—		—
Total small business	$	27,641	$	29,184	$	20,900	$	14,807	$	15,381	$	23,599	$	36,120	$	—	$	167,632
Residential real estate
Pass	$	131,691	$	167,901	$	187,194	$	168,048	$	241,638	$	449,219	$	—	$	—	$	1,345,691
Default	728		—		760		235		167		4,724		—		—		6,614
Total residential real estate	$	132,419	$	167,901	$	187,954	$	168,283	$	241,805	$	453,943	$	—	$	—	$	1,352,305
Home equity
Pass	$	60,274	$	66,238	$	59,534	$	59,387	$	44,817	$	122,397	$	681,784	$	4,057	$	1,098,488
Default	—		—		—		—		—		455		2,044		67		2,566
Total home equity	$	60,274	$	66,238	$	59,534	$	59,387	$	44,817	$	122,852	$	683,828	$	4,124	$	1,101,054
Other consumer
Pass	$	679	$	450	$	209	$	739	$	696	$	7,737	$	12,493	$	—	$	23,003
Default	—		—		—		20		—		34		2		—		56
Total other consumer	$	679	$	450	$	209	$	759	$	696	$	7,771	$	12,495	$	—	$	23,059

Total $ 2,199,885  $ 1,504,307  $ 1,047,533  $ 970,908  $ 758,331  $ 1,445,238  $ 1,454,822  $ 24,169  $ 9,405,193 

(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 $383.6 million as of September 30, 2021, including $16.3 million and $367.3 million originated in 2020 and 2021, respectively, while outstanding PPP loans as of September 30, 2020 totaled $811.7 million.

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, 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	$	1,215	$	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:

	September 30 2021		December 31 2020
Residential real estate portfolio
FICO score (re-scored)(1)	750		749
LTV (re-valued)(2)	55.4	%	57.4	%
Home equity portfolio
FICO score (re-scored)(1)	773		771
LTV (re-valued)(2)(3)	43.3	%	46.0	%

(1)The average FICO scores at September 30, 2021 are based upon rescores from September 2021, as available for previously originated loans, or origination score data for loans booked in September 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 September 30, 2021 are based upon updated automated valuations as of August 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:

	September 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	2	$	343	1	$	87	—	$	—	3	$	430	$	1,640,279	$	1,640,709	$	—
Commercial real estate	6	5,142		1	487		5	3,674		12	9,303		4,211,956		4,221,259		—
Commercial construction	—	—		—	—		—	—		—	—		515,415		515,415		—
Small business	8	243		2	35		5	27		15	305		183,833		184,138		—
Residential real estate	13	2,037		2	848		22	2,822		37	5,707		1,217,142		1,222,849		—
Home equity	9	479		5	218		24	1,784		38	2,481		997,987		1,000,468		—
Other consumer (1)	230	109		12	32		3	2		245	143		23,032		23,175		—
Total	268	$	8,353	23	$	1,707	59	$	8,309	350	$	18,369	$	8,789,644	$	8,808,013	$	—

	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
	September 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	$	3,468	$	15,807	$	19,275	$	3,804	$	30,925	$	34,729
Commercial real estate	8,541		3,247		11,788		10,195		—		10,195
Small business	46		—		46		815		10		825
Residential real estate	6,486		4,386		10,872		10,935		4,593		15,528
Home equity	3,746		—		3,746		5,427		—		5,427
Other consumer	83		—		83		156		—		156
Total nonaccrual loans (1)	$	22,370	$	23,440	$	45,810	$	31,332	$	35,528	$	66,860

(1)Included in these amounts were $21.1 million and $22.2 million of nonaccruing TDRs at September 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:

		September 30, 2021		December 31, 2020
	(Dollars in thousands)
TDRs on accrual status		$	15,950	$	16,983
TDRs on nonaccrual		21,104		22,209
Total TDRs		$	37,054	$	39,192
Additional commitments to lend to a borrower who has been a party to a TDR		$	352	$	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					Nine Months Ended
	September 30, 2021					September 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	—	—		—		2	189		189
Total (1)	—	$	—	$	—	8	$	18,301	$	18,301

	Three Months Ended					Nine Months Ended
	September 30, 2020					September 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	2	$	83	$	83	5	$	391	$	391
Commercial real estate	3	744		744		8	2,518		2,518
Small business	—	—		—		2	112		88
Residential real estate	—	—		—		2	559		642
Total (1)	5	$	827	$	827	17	$	3,580	$	3,639

(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 September 30, 2021, $14.3 million of modifications on existing TDRs during the nine months ended September 30, 2021, and $83,000 and $1.5 million of modifications on existing TDRs during the three and nine months ended September 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		Nine Months Ended
	September 30		September 30
	2021	2020	2021		2020
	(Dollars in thousands)
Adjusted interest rate	—	218	$	—	$	822
Combination rate and maturity	—	—	14,148		—
Court ordered concession	—	—	—		25
Extended maturity	—	609	4,153		2,792
Total	—	827	$	18,301	$	3,639

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Stock Based Compensation (Tables)

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block]

The Company made the following awards of time vested restricted stock:

Date	Shares Granted	Plan	Grant Date Fair Value Per Share		Vesting Period
2/18/2021	49,550	2005 Employee Stock Plan	$	81.84	Ratably over 5 years from grant date
5/25/2021	7,680	2018 Non-Employee Director Stock Plan	$	78.18	Shares vested immediately
9/1/2021	640	2018 Non-Employee Director Stock Plan	$	76.78	Shares vested immediately

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Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Details of derivative positions for interest rate swaps which qualify as hedges for accounting purposes

The following tables reflect the Company's derivative positions as of the dates indicated below for interest rate derivatives which qualify as cash flow hedges for accounting purposes:

September 30, 2021
				Weighted Average Rate
	Notional Amount		Average Maturity	Current Rate Received		Pay Fixed Swap Rate		Fair Value
	(in thousands)		(in years)					(in thousands)
Interest rate swaps on borrowings	$	75,000	0.43	0.12	%	1.53	%	$	(593)
				Current Rate Paid		Receive Fixed Swap Rate
Interest rate swaps on loans	550,000		2.83	0.08	%	2.16	%	18,016
				Current Rate Paid		Receive Fixed Swap Rate Cap - Floor
Interest rate collars on loans	400,000		1.91	0.08	%	2.73% - 2.20%		13,971
Total	$	1,025,000						$	31,394
December 31, 2020
				Weighted Average Rate
	Notional Amount		Average Maturity	Current Rate Received		Pay Fixed Swap Rate		Fair Value
	(in thousands)		(in years)					(in thousands)
Interest rate swaps on borrowings	$	75,000	1.18	0.22	%	1.53	%	$	(1,341)
				Current Rate Paid		Receive Fixed Swap Rate
Interest rate swaps on loans	450,000		2.66	0.15	%	2.37	%	27,021
				Current Rate Paid		Receive Fixed Swap Rate Cap - Floor
Interest rate collars on loans	400,000		2.66	0.15	%	2.73% - 2.20%		21,764
Total	$	925,000						$	47,444

Summary of customer related derivative positions, not designated as hedging

The following table reflects the Company’s customer related derivative positions as of the dates indicated below for those derivatives not designated as hedging:

		Notional Amount Maturing
	Number of  Positions  (1)	Less than 1 year		Less than 2 years		Less than 3 years		Less than 4 years		Thereafter		Total		Fair Value
	September 30, 2021
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	293	$	30,047	$	148,874	$	129,939	$	288,580	$	980,166	$	1,577,606	$	67,126
Pay fixed, receive variable	293	30,047		148,874		129,939		288,580		980,166		1,577,606		(67,122)
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	45	148,253		6,087		—		—		—		154,340		(5,529)
Buys U.S. currency, sells foreign currency	45	148,253		6,087		—		—		—		154,340		5,530
Risk participation agreements
Participation out	11	—		2,645		—		31,719		67,767		102,131		236
Participation in	7	18,450		23,375		16,768		—		8,372		66,965		(64)
		Notional Amount Maturing
	Number of  Positions  (1)	Less than 1 year		Less than 2 years		Less than 3 years		Less than 4 years		Thereafter		Total		Fair Value
	December 31, 2020
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	322	$	102,999	$	76,487	$	149,265	$	147,422	$	1,222,557	$	1,698,730	$	127,226
Pay fixed, receive variable	313	102,999		76,487		149,265		147,422		1,222,557		1,698,730		(127,216)
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	33	87,557		5,300		—		—		—		92,857		(4,214)
Buys U.S. currency, sells foreign currency	33	87,557		5,300		—		—		—		92,857		4,224
Risk participation agreements
Participation out	12	6,721		—		2,675		7,307		93,378		110,081		512
Participation in	8	—		30,649		29,072		—		15,844		75,565		(118)

(1)The Company may enter into one dealer swap agreement which offsets multiple commercial borrower swap agreements.

Fair value of derivative financial instruments as well as their classification on the balance sheet

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the balance sheet and the potential effect of netting arrangements on its financial position, at the dates indicated:

	Asset Derivatives (1)						Liability Derivatives (2)
	Fair Value at			Fair Value at			Fair Value at			Fair Value at
	September 30 2021			December 31 2020			September 30 2021			December 31 2020
	(Dollars in thousands)
Derivatives designated as hedges
Interest rate derivatives	$	32,380	(3)	$	48,786	(3)	$	986	(4)	$	1,342	(4)
Derivatives not designated as hedges
Customer Related Positions
Loan level derivatives	76,552		(3)	127,228		(3)	76,548		(4)	127,218		(4)
Foreign exchange contracts	5,531			4,359			5,530			4,349
Risk participation agreements	236			513			64			119
Mortgage Derivatives
Interest rate lock commitments	1,202			6,513			—			—
Forward sale loan commitments	—			—			22			1
Forward sale hedge commitments	457			—			—			1,035
Total derivatives not designated as hedges	83,978			138,613			82,164			132,722
Total	116,358			187,399			83,150			134,064
Netting Adjustments (5)	(4,808)			23			6,454			16,105
Net Derivatives on the Balance Sheet	111,550			187,422			76,696			117,959
Financial instruments (6)	36,914			48,786			36,914			48,786
Cash collateral pledged (received)	—			—			33,249			62,460
Net Derivative Amounts	$	74,636		$	138,636		$	6,533		$	6,713

(1)All asset derivatives are located in other assets on the balance sheet.

(2)All liability derivatives are located in other liabilities on the balance sheet.

(3)Approximately $1.2 million and $1.6 million of accrued interest receivable is included in the fair value of the interest rate and loan level asset derivatives, respectively, as of September 30, 2021. Accrued interest receivable of approximately $1.2 million and $2.0 million is included in the fair value of the interest rate and loan level asset derivatives, respectively, as of December 31, 2020.

(4)Approximately $60,000 and $1.6 million of accrued interest payable is included in the fair value of the interest rate and loan level liability derivatives, respectively, as of September 30, 2021. Accrued interest payable of approximately $81,000 and $2.0 million is included in the fair value of the interest rate and loan level derivative liabilities, respectively, as of December 31, 2020.

(5)Netting adjustments represent the amounts recorded to convert derivative assets and liabilities cleared through CME from a gross basis to a net basis, inclusive of the variation margin payments, in accordance with applicable accounting guidance. As displayed in the table above, derivatives that cleared through the CME were either in a net asset position or a net liability position as of September 30, 2021.

(6)Reflects offsetting derivative positions with the same counterparty that are not netted on the balance sheet.

Effect of derivative financial instruments included in OCI and current earnings

The table below presents the effect of the Company’s derivative financial instruments included in OCI and current earnings for the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2021		2020		2021		2020
	(Dollars in thousands)
Derivatives designated as hedges
Gain (loss) in OCI on derivatives (effective portion), net of tax	$	(3,383)	$	(2,729)	$	(11,559)	$	20,452
Gain reclassified from OCI into interest income or interest expense (effective portion)	$	4,791	$	4,339	$	13,869	$	9,901
Loss reclassified from OCI into noninterest expense (loss on termination)	$	—	$	(684)	$	—	$	(684)
Interest expense	$	—	$	—	$	—	$	—
Other expense	—		—		—		—
Total	$	—	$	—	$	—	$	—
Derivatives not designated as hedges
Changes in fair value of customer related positions
Other income	$	54	$	21	$	137	$	46
Other expense	(80)		(28)		(374)		(52)
Changes in fair value of mortgage derivatives
Mortgage banking income	(213)		2,027		(3,840)		4,653
Total	$	(239)	$	2,020	$	(4,077)	$	4,647

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

Assets and liabilities measured at fair value on a recurring and nonrecurring basis were as follows as of the dates indicated:

			Fair Value Measurements at Reporting Date Using
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	September 30, 2021
	(Dollars in thousands)
Recurring fair value measurements
Assets
Trading securities	$	3,504	$	3,504	$	—	$	—
Equity securities	22,794		22,794		—		—
Securities available for sale
U.S. government agency securities	217,345		—		217,345		—
U.S. treasury securities	770,002		—		770,002		—
Agency mortgage-backed securities	297,219		—		297,219		—
Agency collateralized mortgage obligations	86,487		—		86,487		—
State, county, and municipal securities	288		—		288		—
Single issuer trust preferred securities issued by banks and insurers	491		—		491		—
Pooled trust preferred securities issued by banks and insurers	1,010		—		1,010		—
Small business administration pooled securities	54,368		—		54,368		—
Loans held for sale	33,553		—		33,553		—
Derivative instruments	116,358		—		116,358		—
Liabilities
Derivative instruments	83,150		—		83,150		—
Total recurring fair value measurements	$	1,520,269	$	26,298	$	1,493,971	$	—
Nonrecurring fair value measurements
Assets
Individually assessed collateral dependent loans (1)	$	34,799	$	—	$	—	$	34,799
Total nonrecurring fair value measurements	$	34,799	$	—	$	—	$	34,799

			Fair Value Measurements at Reporting Date Using
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	December 31, 2020
	(Dollars in thousands)
Recurring fair value measurements
Assets
Trading securities	$	2,838	$	2,838	$	—	$	—
Equity securities	22,107		22,107		—		—
Securities available for sale
U.S. government agency securities	24,116		—		24,116		—
Agency mortgage-backed securities	233,629		—		233,629		—
Agency collateralized mortgage obligations	91,683		—		91,683		—
State, county, and municipal securities	807		—		807		—
Single issuer trust preferred securities issued by banks and insurers	488		—		488		—
Pooled trust preferred securities issued by banks and insurers	1,056		—		1,056		—
Small business administration pooled securities	61,081		—		61,081		—
Loans held for sale	58,104		—		58,104		—
Derivative instruments	187,399		—		187,399		—
Liabilities
Derivative instruments	134,064		—		134,064		—
Total recurring fair value measurements	$	549,244	$	24,945	$	524,299	$	—
Nonrecurring fair value measurements:
Assets
Individually assessed collateral dependent loans (1)	$	31,510	$	—	$	—	$	31,510
Total nonrecurring fair value measurements	$	31,510	$	—	$	—	$	31,510

(1) The fair value of individually assessed collateral dependent loans is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of these possible adjustments may vary.

The estimated fair values and related carrying amounts for assets and liabilities

The estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below as of the dates indicated:

					Fair Value Measurements at Reporting Date Using
	Carrying Value		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	September 30, 2021
	(Dollars in thousands)
Financial assets
Securities held to maturity (a)
U.S. government agency securities	$	33,422	$	33,295	$	—	$	33,295	$	—
U.S. treasury securities	$	3,007	$	3,024	$	—	$	3,024	$	—
Agency mortgage-backed securities	352,483		360,613		—		360,613		—
Agency collateralized mortgage obligations	451,151		452,038		—		452,038		—
Single issuer trust preferred securities issued by banks	1,500		1,508		—		1,508		—
Small business administration pooled securities	23,686		24,828		—		24,828		—
Loans, net of allowance for credit losses (b)	8,680,968		8,663,615		—		—		8,663,615
Federal Home Loan Bank stock (c)	8,666		8,666		—		8,666		—
Cash surrender value of life insurance policies (d)	244,573		244,573		—		244,573		—
Financial liabilities
Deposit liabilities, other than time deposits (e)	$	11,474,578	$	11,474,578	$	—	$	11,474,578	$	—
Time certificates of deposits (f)	785,562		786,514		—		786,514		—
Federal Home Loan Bank borrowings (f)	25,675		25,679		—		25,679		—
Long-term borrowings (f)	18,750		18,571		—		18,571		—
Junior subordinated debentures (g)	62,853		68,098		—		68,098		—
Subordinated debentures (f)	49,767		46,403		—		—		46,403

					Fair Value Measurements at Reporting Date Using
	Carrying Value		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	December 31, 2020
	(Dollars in thousands)
Financial assets
Securities held to maturity (a)
U.S. treasury securities	$	4,017	$	4,077	$	—	$	4,077	$	—
Agency mortgage-backed securities	356,085		374,121		—		374,121		—
Agency collateralized mortgage obligations	335,993		344,119		—		344,119		—
Single issuer trust preferred securities issued by banks	1,500		1,498		—		1,498		—
Small business administration pooled securities	26,917		28,362		—		28,362		—
Loans, net of allowance for credit losses (b)	9,247,964		9,253,381		—		—		9,253,381
Federal Home Loan Bank stock (c)	10,250		10,250		—		10,250		—
Cash surrender value of life insurance policies (d)	200,525		200,525		—		200,525		—
Financial liabilities
Deposit liabilities, other than time deposits (e)	$	10,042,541	$	10,042,541	$	—	$	10,042,541	$	—
Time certificates of deposits (f)	950,629		955,598		—		955,598		—
Federal Home Loan Bank borrowings (f)	35,740		35,885		—		35,885		—
Long-term borrowings (f)	32,773		32,033		—		32,033		—
Junior subordinated debentures (g)	62,851		70,238		—		70,238		—
Subordinated debentures (f)	49,696		46,486		—		—		46,486

(a)The fair values presented are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments and/or discounted cash flow analysis.

(b)Fair value of loans is measured using the exit price valuation method, determined primarily by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities or cash flows, while incorporating liquidity and credit assumptions. Additionally, this amount excludes individually assessed collateral dependent loans, which are deemed to be marked to fair value on a nonrecurring basis.

(c)Federal Home Loan Bank stock has no quoted market value and is carried at cost; therefore the carrying amount approximates fair value.

(d)Cash surrender value of life insurance policies is recorded at its cash surrender value (or the amount that can be realized upon surrender of the policy), therefore, carrying amount approximates fair value.

(e)Fair value of demand deposits, savings and interest checking accounts and money market deposits is the amount payable on demand at the reporting date.

(f)Fair value was determined by discounting anticipated future cash payments using rates currently available for instruments with similar remaining maturities.

(g)Fair value was determined based upon market prices of securities with similar terms and maturities.

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Revenue Recognition Revenue (Tables)

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue [Table Text Block]

The following table presents the revenue streams that the Company has disaggregated as of the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30 2021		September 30 2020		September 30 2021		September 30 2020
	(Dollars in thousands)
Deposit account fees (inclusive of cash management fees)	$	4,298	$	3,428	$	11,704	$	11,227
Interchange fees	2,223		2,025		6,267		10,665
ATM fees	817		708		2,177		1,872
Investment management - wealth management and advisory services	8,147		6,997		23,576		20,113
Investment management - retail investments and insurance revenue	1,027		574		2,774		1,583
Merchant processing income	365		330		1,024		1,000
Credit card income	334		216		883		550
Other noninterest income	1,362		905		3,732		2,651
Total noninterest income in-scope of ASC 606	18,573		15,183		52,137		49,661
Total noninterest income out-of-scope of ASC 606	7,884		14,164		24,533		34,311
Total noninterest income	$	26,457	$	29,347	$	76,670	$	83,972

Contract with Customer, Asset and Liability [Table Text Block]

The following table provides the amount of investment management revenue earned but not received as of the dates indicated:

	September 30, 2021		December 31, 2020
	(Dollars in thousands)
Receivables, included in other assets	$	5,292	$	4,636

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Comprehensive Income/Loss (Tables)

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Comprehensive income

The following tables present a reconciliation of the changes in the components of other comprehensive income (loss) for the periods indicated, including the amount of income tax (expense) benefit allocated to each component of other comprehensive income (loss):

	Three Months Ended September 30, 2021						Nine Months Ended September 30, 2021
	Pre Tax Amount		Tax (Expense) Benefit		After Tax Amount		Pre Tax Amount		Tax (Expense) Benefit		After Tax Amount
	(Dollars in thousands)
Change in fair value of securities available for sale	$	(10,337)	$	2,440	$	(7,897)	$	(15,589)	$	3,711	$	(11,878)
Less: net security losses reclassified into other noninterest expense	—		—		—		—		—		—
Net change in fair value of securities available for sale	(10,337)		2,440		(7,897)		(15,589)		3,711		(11,878)
Change in fair value of cash flow hedges	84		(23)		61		(2,214)		624		(1,590)
Less: net cash flow hedge gains reclassified into interest income or interest expense	4,791		(1,347)		3,444		13,869		(3,900)		9,969
Net change in fair value of cash flow hedges	(4,707)		1,324		(3,383)		(16,083)		4,524		(11,559)
Net unamortized gain related to defined benefit pension and other postretirement adjustments arising during the period	—		—		—		653		(184)		469
Amortization of net actuarial losses	346		(97)		249		1,037		(291)		746
Amortization of net prior service costs	44		(13)		31		131		(37)		94
Net change in other comprehensive income for defined benefit postretirement plans (1)	390		(110)		280		1,821		(512)		1,309
Total other comprehensive loss	$	(14,654)	$	3,654	$	(11,000)	$	(29,851)	$	7,723	$	(22,128)

	Three Months Ended September 30, 2020						Nine Months Ended September 30, 2020
	Pre Tax Amount		Tax (Expense) Benefit		After Tax Amount		Pre Tax Amount		Tax (Expense) Benefit		After Tax Amount
	(Dollars in thousands)
Change in fair value of securities available for sale	$	(857)	$	148	$	(709)	$	13,598	$	(3,265)	$	10,333
Less: net security losses reclassified into other noninterest expense	—		—		—		—		—		—
Net change in fair value of securities available for sale	(857)		148		(709)		13,598		(3,265)		10,333
Change in fair value of cash flow hedges	(143)		41		(102)		37,674		(10,597)		27,077
Less: net cash flow hedge gains reclassified into interest income or interest expense	4,339		(1,220)		3,119		9,901		(2,784)		7,117
Less: loss on termination of hedge reclassified into noninterest expense	(684)		192		(492)		(684)		192		(492)
Net change in fair value of cash flow hedges	(3,798)		1,069		(2,729)		28,457		(8,005)		20,452
Net unamortized loss related to defined benefit pension and other postretirement adjustments arising during the period	(2)		1		(1)		(1,392)		392		(1,000)
Amortization of net actuarial losses	245		(69)		176		736		(207)		529
Amortization of net prior service costs	69		(19)		50		207		(58)		149
Net change in other comprehensive income for defined benefit postretirement plans (1)	312		(87)		225		(449)		127		(322)
Total other comprehensive income (loss)	$	(4,343)	$	1,130	$	(3,213)	$	41,606	$	(11,143)	$	30,463

(1)The amortization of prior service costs is included in the computation of net periodic pension cost as disclosed in Note 15 "Employee Benefit Plans" within the Notes to the Consolidated Financial Statements included in Item 8 of the Company's 2020 Form 10-K.

Company's accumulated other comprehensive loss, net of tax

Information on the Company’s accumulated other comprehensive income (loss), net of tax, is comprised of the following components as of the dates indicated:

	Unrealized Gain (Loss) on Securities		Unrealized Gain (Loss) on Cash Flow Hedge		Defined Benefit Postretirement Plans		Accumulated Other Comprehensive Income (Loss)
	(Dollars in thousands)
	2021
Beginning balance: January 1, 2021	$	13,255	$	33,276	$	(5,836)	$	40,695
Net change in other comprehensive income (loss)	(11,878)		(11,559)		1,309		(22,128)
Ending balance: September 30, 2021	$	1,377	$	21,717	$	(4,527)	$	18,567
	2020
Beginning balance: January 1, 2020	$	4,398	$	16,479	$	(2,708)	$	18,169
Net change in other comprehensive income (loss)	10,333		20,452		(322)		30,463
Ending balance: September 30, 2020	$	14,731	$	36,931	$	(3,030)	$	48,632

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Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Fair Value, Off-balance Sheet Risks [Table Text Block]

The following table summarizes the above financial instruments at the dates indicated:

	September 30, 2021		December 31, 2020
	(Dollars in thousands)
Commitments to extend credit	$	3,591,456	$	3,301,692
Standby letters of credit	20,081		20,686
Deferred standby letter of credit fees	146		164
Loan exposures with recourse	208,833		303,265

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Securities Securities (Equity gains and losses) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Equity securities gains and losses [Abstract]
Equity Securities, FV-NI, Gain (Loss)	$ (169)	$ 308	$ 695	$ (107)
Equity Securities, FV-NI, Realized Gain (Loss)	50	0	191	6
Equity Securities, FV-NI, Unrealized Gain (Loss)	$ (219)	$ 308	$ 504	$ (113)

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Securities (Reconciliation of fair value of available for sale securities) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Reconciliation of fair value of securities
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	$ 12,228	$ 17,869
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	(10,410)	(462)
Debt Securities, Available-for-sale, Allowance for Credit Loss	0	0
Debt Securities, Available-for-sale	1,427,210	412,860
Debt Securities, Available-for-sale, Amortized Cost	1,425,392	395,453
U.S. government agency securities
Reconciliation of fair value of securities
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	1,511	1,640
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	(1,779)	0
Debt Securities, Available-for-sale, Allowance for Credit Loss	0	0
Debt Securities, Available-for-sale	217,345	24,116
Debt Securities, Available-for-sale, Amortized Cost	217,613	22,476
U.S. treasury securities
Reconciliation of fair value of securities
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	(4,490)	0
Debt Securities, Available-for-sale, Allowance for Credit Loss	0	0
Debt Securities, Available-for-sale	770,002
Debt Securities, Available-for-sale, Amortized Cost	774,492	0
Agency mortgage-backed securities
Reconciliation of fair value of securities
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	6,120	9,337
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	(3,288)	(1)
Debt Securities, Available-for-sale, Allowance for Credit Loss	0	0
Debt Securities, Available-for-sale	297,219	233,629
Debt Securities, Available-for-sale, Amortized Cost	294,387	224,293
Agency Collateralized Mortgage Obligations [Member]
Reconciliation of fair value of securities
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	1,933	3,083
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	(522)	(87)
Debt Securities, Available-for-sale, Allowance for Credit Loss	0	0
Debt Securities, Available-for-sale	86,487	91,683
Debt Securities, Available-for-sale, Amortized Cost	85,076	88,687
US States and Political Subdivisions Debt Securities [Member]
Reconciliation of fair value of securities
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	12	17
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	0	0
Debt Securities, Available-for-sale, Allowance for Credit Loss	0	0
Debt Securities, Available-for-sale	288	807
Debt Securities, Available-for-sale, Amortized Cost	276	790
Single Issuer Trust Preferred Securities Issued by Banks and Insurers [Member]
Reconciliation of fair value of securities
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	2	0
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	0	(1)
Debt Securities, Available-for-sale, Allowance for Credit Loss	0	0
Debt Securities, Available-for-sale	491	488
Debt Securities, Available-for-sale, Amortized Cost	489	489
Pooled trust preferred securities issued by banks and insurers
Reconciliation of fair value of securities
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	0	0
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	(331)	(373)
Debt Securities, Available-for-sale, Allowance for Credit Loss	0	0
Debt Securities, Available-for-sale	1,010	1,056
Debt Securities, Available-for-sale, Amortized Cost	1,341	1,429
Small Business Administration Pooled Securities [Member]
Reconciliation of fair value of securities
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax	2,650	3,792
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax	0	0
Debt Securities, Available-for-sale, Allowance for Credit Loss	0	0
Debt Securities, Available-for-sale	54,368	61,081
Debt Securities, Available-for-sale, Amortized Cost	$ 51,718	$ 57,289

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Securities Securities (Available for sale securities in continuous unrealized loss position) (Details) $ in Thousands	Sep. 30, 2021 USD ($) holding	Dec. 31, 2020 USD ($) holding
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | holding	32	7
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	$ 1,062,806	$ 24,248
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(10,078)	(89)
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer	1,314	1,056
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(332)	(373)
Debt Securities, Available-for-sale, Unrealized Loss Position	1,064,120	25,304
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	$ 10,410	$ 462
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | holding	9	3
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	$ 131,548	$ 437
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(3,287)	(1)
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer	304	0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(1)	0
Debt Securities, Available-for-sale, Unrealized Loss Position	131,852	437
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	$ 3,288	$ 1
Collateralized Debt Obligations [Member]
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | holding	1	2
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	$ 22,994	$ 23,323
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(522)	(87)
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer	0	0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	0
Debt Securities, Available-for-sale, Unrealized Loss Position	22,994	23,323
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	$ 522	$ 87
Single issuer trust preferred securities issued by banks and insurers
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | holding		1
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months		$ 488
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss		(1)
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer		0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss		0
Debt Securities, Available-for-sale, Unrealized Loss Position		488
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss		$ 1
Pooled trust preferred securities issued by banks and insurers
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | holding	1	1
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	$ 0	$ 0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer	1,010	1,056
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(331)	(373)
Debt Securities, Available-for-sale, Unrealized Loss Position	1,010	1,056
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	$ 331	$ 373
U.S. government agency securities
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | holding	5
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	$ 138,262
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(1,779)
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer	0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0
Debt Securities, Available-for-sale, Unrealized Loss Position	138,262
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	$ 1,779
US Treasury Securities [Member]
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | holding	16
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	$ 770,002
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(4,490)
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer	0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0
Debt Securities, Available-for-sale, Unrealized Loss Position	770,002
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	$ 4,490

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Securities Securities (Reconciliation of amortized cost of held to maturity securities) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Schedule of Held-to-maturity Securities [Line Items]
Debt Securities, Held-to-maturity	$ 865,249	$ 724,512
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain	17,167	28,007
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss	(7,110)	(342)
Debt Securities, Held-to-maturity, Allowance for Credit Loss	0	0
Debt Securities, Held-to-maturity, Fair Value	875,306	752,177
Small Business Administration Pooled Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Debt Securities, Held-to-maturity	23,686	26,917
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain	1,142	1,445
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss	0	0
Debt Securities, Held-to-maturity, Allowance for Credit Loss	0	0
Debt Securities, Held-to-maturity, Fair Value	24,828	28,362
Trust Preferred Securities Subject to Mandatory Redemption [Member]
Schedule of Held-to-maturity Securities [Line Items]
Debt Securities, Held-to-maturity	1,500	1,500
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain	8	0
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss	0	(2)
Debt Securities, Held-to-maturity, Allowance for Credit Loss	0	0
Debt Securities, Held-to-maturity, Fair Value	1,508	1,498
Collateralized Debt Obligations [Member]
Schedule of Held-to-maturity Securities [Line Items]
Debt Securities, Held-to-maturity	451,151	335,993
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain	5,089	8,466
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss	(4,202)	(340)
Debt Securities, Held-to-maturity, Allowance for Credit Loss	0	0
Debt Securities, Held-to-maturity, Fair Value	452,038	344,119
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Schedule of Held-to-maturity Securities [Line Items]
Debt Securities, Held-to-maturity	352,483	356,085
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain	10,911	18,036
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss	(2,781)	0
Debt Securities, Held-to-maturity, Allowance for Credit Loss	0	0
Debt Securities, Held-to-maturity, Fair Value	360,613	374,121
US Treasury Securities [Member]
Schedule of Held-to-maturity Securities [Line Items]
Debt Securities, Held-to-maturity	3,007	4,017
Debt Securities, Held-to-maturity, Accumulated Unrecognized Gain	17	60
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss	0	0
Debt Securities, Held-to-maturity, Allowance for Credit Loss	0	0
Debt Securities, Held-to-maturity, Fair Value	3,024	4,077
U.S. government agency securities
Schedule of Held-to-maturity Securities [Line Items]
Debt Securities, Held-to-maturity	33,422	0
Debt Securities, Held-to-maturity, Accumulated Unrecognized Loss	(127)	0
Debt Securities, Held-to-maturity, Allowance for Credit Loss	0	0
Debt Securities, Held-to-maturity, Fair Value	$ 33,295	$ 0

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Securities (Schedule of Contractual Maturities of Securities) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Available for Sale, Fair Value
Debt Securities, Available-for-sale, Amortized Cost	$ 1,425,392	$ 395,453
Debt Securities, Available-for-sale	1,427,210	412,860
Held to Maturity, Fair Value
Debt Securities, Held-to-maturity	865,249	724,512
Held to Maturity, Fair Value, Total	875,306	752,177
Available for Sale Securities and Held to Maturity Securities Amortized Cost	2,290,641
Debt Securities, Available-for-sale and Held-to-maturity	2,302,516
Debt Securities, Available-for-sale and Held-to-maturity, Maturity, Allocated and Single Maturity Date, within One Year, Amortized Cost	15,365
Debt Securities, Available-for-sale and Held-to-maturity, Maturity, Allocated and Single Maturity Date, within One Year, Fair Value	15,467
Debt Securities, Available-for-sale and Held-to-maturity, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Amortized Cost	690,802
Debt Securities, Available-for-sale and Held-to-maturity, Maturity, Allocated and Single Maturity Date, after One Through Five Years, Fair Value	690,436
Debt Securities, Available-for-sale and Held-to-maturity, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Amortized Cost	624,951
Debt Securities, Available-for-sale and Held-to-maturity, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Fair Value	621,521
Debt Securities, Available-for-sale and Held-to-maturity, Maturity, Allocated and Single Maturity Date, after Ten Years, Amortized Cost	959,523
Debt Securities, Available-for-sale and Held-to-maturity, Maturity, Allocated and Single Maturity Date, after Ten Years, Fair Value	975,092
U.S. government agency securities
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Available for Sale, Amortized Cost, Due in one year or less	10,000
Available for Sale, Amortized Cost, Due after one year to five years	31,422
Available for Sale, Amortized Cost, Due after five to ten years	176,191
Available for Sale, Amortized Cost, Due after ten years	0
Available for Sale, Fair Value
Available for Sale, Fair Value, Due in one year or less	10,066
Available for Sale, Fair Value, Due after one year to five years	31,275
Available for Sale, Fair Value, Due after five to ten years	176,004
Available for Sale, Fair Value, Due after ten years	0
Debt Securities, Available-for-sale, Amortized Cost	217,613	22,476
Debt Securities, Available-for-sale	217,345	24,116
Held to Maturity, Amortized Cost
Held to Maturity, Amortized Cost, Due in one year or less	0
Held to Maturity, Amortized Cost, Due after one year to five years	33,422
Held to Maturity, Amortized Cost, Due after five to ten years	0
Held to Maturity, Amortized Cost, Due after ten years	0
Held to Maturity, Fair Value
Held to Maturity, Fair Value, Due in one year or less	0
Held to Maturity, Fair Value, Due after one year to five years	33,295
Held to Maturity, Fair Value, Due after five to ten years	0
Held to Maturity, Fair Value, Due after ten years	0
Debt Securities, Held-to-maturity	33,422	0
Held to Maturity, Fair Value, Total	33,295	0
Small Business Administration Pooled Securities [Member]
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Available for Sale, Amortized Cost, Due in one year or less	0
Available for Sale, Amortized Cost, Due after one year to five years	0
Available for Sale, Amortized Cost, Due after five to ten years	0
Available for Sale, Amortized Cost, Due after ten years	51,718
Available for Sale, Fair Value
Available for Sale, Fair Value, Due in one year or less	0
Available for Sale, Fair Value, Due after one year to five years	0
Available for Sale, Fair Value, Due after five to ten years	0
Available for Sale, Fair Value, Due after ten years	54,368
Debt Securities, Available-for-sale, Amortized Cost	51,718	57,289
Debt Securities, Available-for-sale	54,368	61,081
Held to Maturity, Amortized Cost
Held to Maturity, Amortized Cost, Due in one year or less	0
Held to Maturity, Amortized Cost, Due after one year to five years	0
Held to Maturity, Amortized Cost, Due after five to ten years	0
Held to Maturity, Amortized Cost, Due after ten years	23,686
Held to Maturity, Fair Value
Held to Maturity, Fair Value, Due in one year or less	0
Held to Maturity, Fair Value, Due after one year to five years	0
Held to Maturity, Fair Value, Due after five to ten years	0
Held to Maturity, Fair Value, Due after ten years	24,828
Debt Securities, Held-to-maturity	23,686	26,917
Held to Maturity, Fair Value, Total	24,828	28,362
Debt Securities [Member]
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Available for Sale, Amortized Cost, Due in one year or less	12,358
Available for Sale, Amortized Cost, Due after one year to five years	653,898
Available for Sale, Amortized Cost, Due after five to ten years	498,247
Available for Sale, Amortized Cost, Due after ten years	260,889
Available for Sale, Fair Value
Available for Sale, Fair Value, Due in one year or less	12,443
Available for Sale, Fair Value, Due after one year to five years	653,464
Available for Sale, Fair Value, Due after five to ten years	494,606
Available for Sale, Fair Value, Due after ten years	266,697
Held to Maturity, Amortized Cost
Held to Maturity, Amortized Cost, Due in one year or less	3,007
Held to Maturity, Amortized Cost, Due after one year to five years	36,904
Held to Maturity, Amortized Cost, Due after five to ten years	126,704
Held to Maturity, Amortized Cost, Due after ten years	698,634
Held to Maturity, Fair Value
Held to Maturity, Fair Value, Due in one year or less	3,024
Held to Maturity, Fair Value, Due after one year to five years	36,972
Held to Maturity, Fair Value, Due after five to ten years	126,915
Held to Maturity, Fair Value, Due after ten years	708,395
Held to Maturity, Fair Value, Total	875,306
Pooled trust preferred securities issued by banks and insurers
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Available for Sale, Amortized Cost, Due in one year or less	0
Available for Sale, Amortized Cost, Due after one year to five years	0
Available for Sale, Amortized Cost, Due after five to ten years	0
Available for Sale, Amortized Cost, Due after ten years	1,341
Available for Sale, Fair Value
Available for Sale, Fair Value, Due in one year or less	0
Available for Sale, Fair Value, Due after one year to five years	0
Available for Sale, Fair Value, Due after five to ten years	0
Available for Sale, Fair Value, Due after ten years	1,010
Debt Securities, Available-for-sale, Amortized Cost	1,341	1,429
Debt Securities, Available-for-sale	1,010	1,056
Single Issuer Trust Preferred Securities Issued by Banks and Insurers [Member]
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Available for Sale, Amortized Cost, Due in one year or less	0
Available for Sale, Amortized Cost, Due after one year to five years	0
Available for Sale, Amortized Cost, Due after five to ten years	0
Available for Sale, Amortized Cost, Due after ten years	489
Available for Sale, Fair Value
Available for Sale, Fair Value, Due in one year or less	0
Available for Sale, Fair Value, Due after one year to five years	0
Available for Sale, Fair Value, Due after five to ten years	0
Available for Sale, Fair Value, Due after ten years	491
Debt Securities, Available-for-sale, Amortized Cost	489	489
Debt Securities, Available-for-sale	491	488
Held to Maturity, Amortized Cost
Held to Maturity, Amortized Cost, Due in one year or less	0
Held to Maturity, Amortized Cost, Due after one year to five years	0
Held to Maturity, Amortized Cost, Due after five to ten years	1,500
Held to Maturity, Amortized Cost, Due after ten years	0
Held to Maturity, Fair Value
Held to Maturity, Fair Value, Due in one year or less	0
Held to Maturity, Fair Value, Due after one year to five years	0
Held to Maturity, Fair Value, Due after five to ten years	1,508
Held to Maturity, Fair Value, Due after ten years	0
Debt Securities, Held-to-maturity	1,500	1,500
Held to Maturity, Fair Value, Total	1,508	1,498
US States and Political Subdivisions Debt Securities [Member]
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Available for Sale, Amortized Cost, Due in one year or less	85
Available for Sale, Amortized Cost, Due after one year to five years	0
Available for Sale, Amortized Cost, Due after five to ten years	191
Available for Sale, Amortized Cost, Due after ten years	0
Available for Sale, Fair Value
Available for Sale, Fair Value, Due in one year or less	85
Available for Sale, Fair Value, Due after one year to five years	0
Available for Sale, Fair Value, Due after five to ten years	203
Available for Sale, Fair Value, Due after ten years	0
Debt Securities, Available-for-sale, Amortized Cost	276	790
Debt Securities, Available-for-sale	288	807
Agency Collateralized Mortgage Obligations [Member]
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Available for Sale, Amortized Cost, Due in one year or less	0
Available for Sale, Amortized Cost, Due after one year to five years	0
Available for Sale, Amortized Cost, Due after five to ten years	0
Available for Sale, Amortized Cost, Due after ten years	85,076
Available for Sale, Fair Value
Available for Sale, Fair Value, Due in one year or less	0
Available for Sale, Fair Value, Due after one year to five years	0
Available for Sale, Fair Value, Due after five to ten years	0
Available for Sale, Fair Value, Due after ten years	86,487
Debt Securities, Available-for-sale, Amortized Cost	85,076	88,687
Debt Securities, Available-for-sale	86,487	91,683
Held to Maturity, Amortized Cost
Held to Maturity, Amortized Cost, Due in one year or less	0
Held to Maturity, Amortized Cost, Due after one year to five years	0
Held to Maturity, Amortized Cost, Due after five to ten years	0
Held to Maturity, Amortized Cost, Due after ten years	451,151
Held to Maturity, Fair Value
Held to Maturity, Fair Value, Due in one year or less	0
Held to Maturity, Fair Value, Due after one year to five years	0
Held to Maturity, Fair Value, Due after five to ten years	0
Held to Maturity, Fair Value, Due after ten years	452,038
Debt Securities, Held-to-maturity	451,151	335,993
Held to Maturity, Fair Value, Total	452,038	344,119
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Available for Sale, Amortized Cost, Due in one year or less	2,273
Available for Sale, Amortized Cost, Due after one year to five years	81,194
Available for Sale, Amortized Cost, Due after five to ten years	88,655
Available for Sale, Amortized Cost, Due after ten years	122,265
Available for Sale, Fair Value
Available for Sale, Fair Value, Due in one year or less	2,292
Available for Sale, Fair Value, Due after one year to five years	83,434
Available for Sale, Fair Value, Due after five to ten years	87,152
Available for Sale, Fair Value, Due after ten years	124,341
Debt Securities, Available-for-sale, Amortized Cost	294,387	224,293
Debt Securities, Available-for-sale	297,219	233,629
Held to Maturity, Amortized Cost
Held to Maturity, Amortized Cost, Due in one year or less	0
Held to Maturity, Amortized Cost, Due after one year to five years	3,482
Held to Maturity, Amortized Cost, Due after five to ten years	125,204
Held to Maturity, Amortized Cost, Due after ten years	223,797
Held to Maturity, Fair Value
Held to Maturity, Fair Value, Due in one year or less	0
Held to Maturity, Fair Value, Due after one year to five years	3,677
Held to Maturity, Fair Value, Due after five to ten years	125,407
Held to Maturity, Fair Value, Due after ten years	231,529
Debt Securities, Held-to-maturity	352,483	356,085
Held to Maturity, Fair Value, Total	360,613	374,121
US Treasury Securities [Member]
Schedule of Available-for-sale Securities and Held-to-maturity Securities [Line Items]
Available for Sale, Amortized Cost, Due in one year or less	0
Available for Sale, Amortized Cost, Due after one year to five years	541,282
Available for Sale, Amortized Cost, Due after five to ten years	233,210
Available for Sale, Amortized Cost, Due after ten years	0
Available for Sale, Fair Value
Available for Sale, Fair Value, Due in one year or less	0
Available for Sale, Fair Value, Due after one year to five years	538,755
Available for Sale, Fair Value, Due after five to ten years	231,247
Available for Sale, Fair Value, Due after ten years	0
Debt Securities, Available-for-sale, Amortized Cost	774,492	0
Debt Securities, Available-for-sale	770,002
Held to Maturity, Amortized Cost
Held to Maturity, Amortized Cost, Due in one year or less	3,007
Held to Maturity, Amortized Cost, Due after one year to five years	0
Held to Maturity, Amortized Cost, Due after five to ten years	0
Held to Maturity, Amortized Cost, Due after ten years	0
Held to Maturity, Fair Value
Held to Maturity, Fair Value, Due in one year or less	3,024
Held to Maturity, Fair Value, Due after one year to five years	0
Held to Maturity, Fair Value, Due after five to ten years	0
Held to Maturity, Fair Value, Due after ten years	0
Debt Securities, Held-to-maturity	3,007	4,017
Held to Maturity, Fair Value, Total	$ 3,024	$ 4,077

XML

Securities (Details Textual) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Debt Securities, Available-for-sale [Line Items]
Interest Receivable	$ 29,100		$ 36,700
Trading	3,504	$ 2,838
Debt Securities, Available-for-sale	1,427,210	412,860
Debt Securities, Available-for-sale, Past due	0	0
Investments in obligations of individual states, counties or municipalities which exceed 10% of equity	0	0
Debt Securities, Available-for-sale, Past due	0	0
Debt Securities, Available-for-sale, Nonaccrual	0	0
Debt Securities, Held-to-maturity, Nonaccrual	0	0
Securities (Textual) [Abstract]
Callable Securities in Investment Portfolio	3,200
Pledged Financial Instruments, Not Separately Reported, Securities	678,400	419,600
Investments in obligations of individual states, counties or municipalities which exceed 10% of equity	0	0
Debt Securities, Held-to-maturity	865,249	724,512
Equity Securities, FV-NI	22,794	22,107
Debt Securities, Held-to-maturity, 90 Days or More Past Due, Still Accruing	0	0
Available-for-sale Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Interest Receivable	3,300	1,200
Held-to-maturity Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Interest Receivable	$ 2,200	$ 1,500

XML

Loans, Allowance for Credit Losses and Credit Quality Financing Receivable, Allowance for Credit Loss (Details) - USD ($) $ in Thousands		3 Months Ended				9 Months Ended
		Sep. 30, 2021		Sep. 30, 2020		Sep. 30, 2021		Sep. 30, 2020		Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing Receivable, Allowance for Credit Loss		$ 92,246	[1]			$ 92,246	[1]			$ 102,357	$ 113,392	$ 112,176	$ 67,740
Financing Receivable, Allowance for Credit Losses, Effect of Change in Method	[2]							$ (1,137)
Financing Receivable, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase	[3]							1,157
Allowance for Loan and Lease Losses, Write-offs		(332)
Allowance for Loan and Lease Loss, Recovery of Bad Debts		221
Provision for Loan and Lease Losses		(10,000)
Loans and Leases Receivable, Allowance		92,246	[1]	$ 115,625	[1]	92,246	[1]	115,625	[1]		113,392
Provision for credit losses		(10,000)		7,500		(17,500)		52,500
Allowance for Loan and Lease Loss, Recovery of Bad Debts				253		853		1,113
Allowance for Loan and Lease Losses, Write-offs				(4,304)		(4,499)		(5,748)
Commercial And Industrial [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing Receivable, Allowance for Credit Loss		16,014	[1]			16,014	[1]			17,032	21,086	25,662	17,594
Financing Receivable, Allowance for Credit Losses, Effect of Change in Method	[2]							(1,984)
Financing Receivable, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase	[3]							49
Allowance for Loan and Lease Losses, Write-offs		(1)
Allowance for Loan and Lease Loss, Recovery of Bad Debts		1
Provision for Loan and Lease Losses		(1,018)
Loans and Leases Receivable, Allowance	[1]	16,014		28,219		16,014		28,219
Provision for credit losses				2,741		(1,698)		12,698
Allowance for Loan and Lease Loss, Recovery of Bad Debts				1		100		47
Allowance for Loan and Lease Losses, Write-offs				(185)		(3,474)		(185)
Commercial Real Estate [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing Receivable, Allowance for Credit Loss		37,798	[1]			37,798	[1]			44,325	45,009	36,956	32,935
Financing Receivable, Allowance for Credit Losses, Effect of Change in Method	[2]							(13,048)
Financing Receivable, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase	[3]							337
Allowance for Loan and Lease Losses, Write-offs		0
Allowance for Loan and Lease Loss, Recovery of Bad Debts		0
Provision for Loan and Lease Losses		(6,527)
Loans and Leases Receivable, Allowance	[1]	37,798		39,386		37,798		39,386
Provision for credit losses				6,306		(7,268)		23,038
Allowance for Loan and Lease Loss, Recovery of Bad Debts				9		57		9
Allowance for Loan and Lease Losses, Write-offs				(3,885)		0		(3,885)
Construction Loans [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing Receivable, Allowance for Credit Loss		4,468	[1]			4,468	[1]			4,865	5,397	4,501	6,053
Financing Receivable, Allowance for Credit Losses, Effect of Change in Method	[2]							(3,652)
Financing Receivable, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase	[3]							0
Allowance for Loan and Lease Losses, Write-offs		0
Allowance for Loan and Lease Loss, Recovery of Bad Debts		0
Provision for Loan and Lease Losses		(397)
Loans and Leases Receivable, Allowance	[1]	4,468		5,210		4,468		5,210
Provision for credit losses				709		(929)		2,809
Allowance for Loan and Lease Loss, Recovery of Bad Debts				0		0		0
Allowance for Loan and Lease Losses, Write-offs				0		0		0
Small Business [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing Receivable, Allowance for Credit Loss		3,667	[1]			3,667	[1]			3,612	5,095	4,561	1,746
Financing Receivable, Allowance for Credit Losses, Effect of Change in Method	[2]							495
Financing Receivable, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase	[3]							0
Allowance for Loan and Lease Losses, Write-offs		(83)
Allowance for Loan and Lease Loss, Recovery of Bad Debts		50
Provision for Loan and Lease Losses		88
Loans and Leases Receivable, Allowance	[1]	3,667		4,593		3,667		4,593
Provision for credit losses				79		(1,309)		2,538
Allowance for Loan and Lease Loss, Recovery of Bad Debts				2		65		8
Allowance for Loan and Lease Losses, Write-offs				(49)		(184)		(194)
Residential Real Estate [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing Receivable, Allowance for Credit Loss		11,047	[1]			11,047	[1]			12,014	14,275	15,046	3,440
Financing Receivable, Allowance for Credit Losses, Effect of Change in Method	[2]							9,828
Financing Receivable, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase	[3]							423
Allowance for Loan and Lease Losses, Write-offs		0
Allowance for Loan and Lease Loss, Recovery of Bad Debts		0
Provision for Loan and Lease Losses		(967)
Loans and Leases Receivable, Allowance	[1]	11,047		14,163		11,047		14,163
Provision for credit losses				(884)		(3,229)		470
Allowance for Loan and Lease Loss, Recovery of Bad Debts				1		1		2
Allowance for Loan and Lease Losses, Write-offs				0		0		0
Home Equity Line of Credit [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing Receivable, Allowance for Credit Loss		18,868	[1]			18,868	[1]			20,087	22,060	24,860	5,576
Financing Receivable, Allowance for Credit Losses, Effect of Change in Method	[2]							7,012
Financing Receivable, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase	[3]							319
Allowance for Loan and Lease Losses, Write-offs		0
Allowance for Loan and Lease Loss, Recovery of Bad Debts		49
Provision for Loan and Lease Losses		(1,268)
Loans and Leases Receivable, Allowance	[1]	18,868		23,572		18,868		23,572
Provision for credit losses				(1,309)		(3,230)		10,633
Allowance for Loan and Lease Loss, Recovery of Bad Debts				21		107		174
Allowance for Loan and Lease Losses, Write-offs				0		(69)		(142)
Consumer - Other [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing Receivable, Allowance for Credit Loss		384	[1]			384	[1]			$ 422	$ 470	$ 590	$ 396
Financing Receivable, Allowance for Credit Losses, Effect of Change in Method	[2]							212
Financing Receivable, Allowance for Credit Loss, Purchased with Credit Deterioration, Increase	[3]							29
Allowance for Loan and Lease Losses, Write-offs		(248)
Allowance for Loan and Lease Loss, Recovery of Bad Debts		121
Provision for Loan and Lease Losses		89
Loans and Leases Receivable, Allowance	[1]	$ 384		482		384		482
Provision for credit losses				(142)		163		314
Allowance for Loan and Lease Loss, Recovery of Bad Debts				219		523		873
Allowance for Loan and Lease Losses, Write-offs				$ (185)		$ (772)		$ (1,342)

[1] Balances of accrued interest receivable excluded from amortized cost and the calculation of allowance for credit losses amounted to $29.1 million and $36.7 million as of September 30, 2021 and September 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.

XML

Loans, Allowance for Credit Losses and Credit Quality Finance Receivable Credit Quality Indicators (Details) - USD ($) $ in Thousands		Sep. 30, 2021		Dec. 31, 2020	Sep. 30, 2020
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		$ 1,787,591			$ 1,504,307
Financing Receivable, Originated Two Years before Latest Fiscal Year		1,003,302			1,047,533
Financing Receivable, Originated Three Years before Latest Fiscal Year		627,225			970,908
Financing Receivable, Originated Four Years before Latest Fiscal Year		670,687			758,331
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		1,518,865			1,445,238
Financing Receivable, Revolving		1,349,078			1,454,822
Financing Receivable, after Allowance for Credit Loss		1,845,455			2,199,885
Loans and Leases Receivable, Gross		8,808,013	[1]	$ 9,392,866	9,405,193
Commercial Real Estate [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		1,064,880			877,770
Financing Receivable, Originated Two Years before Latest Fiscal Year		662,020			561,699
Financing Receivable, Originated Three Years before Latest Fiscal Year		376,159			616,367
Financing Receivable, Originated Four Years before Latest Fiscal Year		473,418			428,865
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		883,097			806,109
Financing Receivable, Revolving		30,683			39,998
Financing Receivable, after Allowance for Credit Loss		731,002			778,315
Loans and Leases Receivable, Gross		4,221,259	[1]	4,173,927	4,125,464	[1]
Commercial Real Estate [Member] | Potential Weakness [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		29,091			15,957
Financing Receivable, Originated Two Years before Latest Fiscal Year		51,976			20,313
Financing Receivable, Originated Three Years before Latest Fiscal Year		14,628			7,941
Financing Receivable, Originated Four Years before Latest Fiscal Year		21,350			27,253
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		82,655			47,875
Financing Receivable, Revolving		13,615			0
Financing Receivable, after Allowance for Credit Loss		22,106			20,639
Loans and Leases Receivable, Gross	[1]	235,421			139,978
Commercial Real Estate [Member] | Pass [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		1,019,453			859,548
Financing Receivable, Originated Two Years before Latest Fiscal Year		606,645			512,371
Financing Receivable, Originated Three Years before Latest Fiscal Year		347,874			587,345
Financing Receivable, Originated Four Years before Latest Fiscal Year		442,306			399,442
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		794,263			751,629
Financing Receivable, Revolving		17,068			39,998
Financing Receivable, after Allowance for Credit Loss		699,565			753,415
Loans and Leases Receivable, Gross	[1]	3,927,174			3,920,089
Commercial Real Estate [Member] | Definite Weakness Loss Unlikely [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		16,336			2,265
Financing Receivable, Originated Two Years before Latest Fiscal Year		3,399			10,092
Financing Receivable, Originated Three Years before Latest Fiscal Year		13,657			21,081
Financing Receivable, Originated Four Years before Latest Fiscal Year		9,762			2,170
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		6,179			6,605
Financing Receivable, Revolving		0			0
Financing Receivable, after Allowance for Credit Loss		9,331			4,261
Loans and Leases Receivable, Gross	[1]	58,664			46,474
Commercial Real Estate [Member] | Partial Loss Probable [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		0			0
Financing Receivable, Originated Two Years before Latest Fiscal Year		0			18,923
Financing Receivable, Originated Three Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Four Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		0			0
Financing Receivable, Revolving		0			0
Financing Receivable, after Allowance for Credit Loss		0			0
Loans and Leases Receivable, Gross	[1]	0			18,923
Commercial Real Estate [Member] | Definite Loss [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		0			0
Financing Receivable, Originated Two Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Three Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Four Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		0			0
Financing Receivable, Revolving		0			0
Financing Receivable, after Allowance for Credit Loss		0			0
Loans and Leases Receivable, Gross	[1]	0			0
Commercial And Industrial [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		195,073			156,992
Financing Receivable, Originated Two Years before Latest Fiscal Year		101,174			137,899
Financing Receivable, Originated Three Years before Latest Fiscal Year		77,087			44,899
Financing Receivable, Originated Four Years before Latest Fiscal Year		18,833			26,767
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		18,577			24,214
Financing Receivable, Revolving		621,432			650,681
Financing Receivable, after Allowance for Credit Loss		608,467			1,018,266
Loans and Leases Receivable, Gross		1,640,709	[1]	2,103,152	2,062,345	[1]
Commercial And Industrial [Member] | Potential Weakness [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		9,035			2,302
Financing Receivable, Originated Two Years before Latest Fiscal Year		3,286			7,833
Financing Receivable, Originated Three Years before Latest Fiscal Year		1,672			4,573
Financing Receivable, Originated Four Years before Latest Fiscal Year		980			1,219
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		1,632			318
Financing Receivable, Revolving		10,262			15,248
Financing Receivable, after Allowance for Credit Loss		1,338			2,560
Loans and Leases Receivable, Gross	[1]	28,205			34,103
Commercial And Industrial [Member] | Pass [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year	[2]	185,706			153,137
Financing Receivable, Originated Two Years before Latest Fiscal Year	[2]	97,095			107,318
Financing Receivable, Originated Three Years before Latest Fiscal Year	[2]	74,381			34,826
Financing Receivable, Originated Four Years before Latest Fiscal Year	[2]	15,175			23,065
Financing Receivable, Originated Five or More Years before Latest Fiscal Year	[2]	16,731			22,334
Financing Receivable, Revolving	[2]	605,718			601,937
Financing Receivable, after Allowance for Credit Loss	[2]	590,532			1,012,974
Loans and Leases Receivable, Gross	[1],[2]	1,585,404			1,958,168
Commercial And Industrial [Member] | Definite Weakness Loss Unlikely [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		332			1,553
Financing Receivable, Originated Two Years before Latest Fiscal Year		793			22,748
Financing Receivable, Originated Three Years before Latest Fiscal Year		1,034			5,500
Financing Receivable, Originated Four Years before Latest Fiscal Year		2,678			2,483
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		214			1,419
Financing Receivable, Revolving		5,452			33,496
Financing Receivable, after Allowance for Credit Loss		16,597			2,732
Loans and Leases Receivable, Gross	[1]	27,100			69,931
Commercial And Industrial [Member] | Partial Loss Probable [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		0			0
Financing Receivable, Originated Two Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Three Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Four Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		0			143
Financing Receivable, Revolving		0			0
Financing Receivable, after Allowance for Credit Loss		0			0
Loans and Leases Receivable, Gross	[1]	0			143
Commercial And Industrial [Member] | Definite Loss [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		0			0
Financing Receivable, Originated Two Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Three Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Four Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		0			0
Financing Receivable, Revolving		0			0
Financing Receivable, after Allowance for Credit Loss		0			0
Loans and Leases Receivable, Gross	[1]	0			0
Construction Loans [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		234,124			205,772
Financing Receivable, Originated Two Years before Latest Fiscal Year		82,559			79,338
Financing Receivable, Originated Three Years before Latest Fiscal Year		22,851			66,406
Financing Receivable, Originated Four Years before Latest Fiscal Year		22,873			0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		6,505			6,750
Financing Receivable, Revolving		16,424			31,700
Financing Receivable, after Allowance for Credit Loss		127,945			182,291
Loans and Leases Receivable, Gross		515,415	[1]	553,929	573,334	[1]
Construction Loans [Member] | Potential Weakness [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		12,991			9,352
Financing Receivable, Originated Two Years before Latest Fiscal Year		0			5,037
Financing Receivable, Originated Three Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Four Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		0			0
Financing Receivable, Revolving					328
Financing Receivable, after Allowance for Credit Loss		0			0
Loans and Leases Receivable, Gross	[1]	12,991			14,717
Construction Loans [Member] | Pass [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		216,573			196,420
Financing Receivable, Originated Two Years before Latest Fiscal Year		82,559			73,298
Financing Receivable, Originated Three Years before Latest Fiscal Year		22,851			66,406
Financing Receivable, Originated Four Years before Latest Fiscal Year		22,873			0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		6,505			6,750
Financing Receivable, Revolving		16,424			31,372
Financing Receivable, after Allowance for Credit Loss		127,945			182,291
Loans and Leases Receivable, Gross	[1]	497,864			557,614
Construction Loans [Member] | Definite Weakness Loss Unlikely [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		4,560			0
Financing Receivable, Originated Two Years before Latest Fiscal Year		0			1,003
Financing Receivable, Originated Three Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Four Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		0			0
Financing Receivable, Revolving		0			0
Financing Receivable, after Allowance for Credit Loss		0			0
Loans and Leases Receivable, Gross	[1]	4,560			1,003
Construction Loans [Member] | Partial Loss Probable [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		0			0
Financing Receivable, Originated Two Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Three Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Four Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		0			0
Financing Receivable, Revolving		0			0
Financing Receivable, after Allowance for Credit Loss		0			0
Loans and Leases Receivable, Gross	[1]	0			0
Construction Loans [Member] | Definite Loss [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		0			0
Financing Receivable, Originated Two Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Three Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Four Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		0			0
Financing Receivable, Revolving		0			0
Financing Receivable, after Allowance for Credit Loss		0			0
Loans and Leases Receivable, Gross	[1]	0			0
Small Business [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		39,441			29,184
Financing Receivable, Originated Two Years before Latest Fiscal Year		22,499			20,900
Financing Receivable, Originated Three Years before Latest Fiscal Year		14,467			14,807
Financing Receivable, Originated Four Years before Latest Fiscal Year		10,690			15,381
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		22,267			23,599
Financing Receivable, Revolving		33,886			36,120
Financing Receivable, after Allowance for Credit Loss		40,888			27,641
Loans and Leases Receivable, Gross		184,138	[1]	175,023	167,632	[1]
Small Business [Member] | Potential Weakness [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		0			10
Financing Receivable, Originated Two Years before Latest Fiscal Year		383			16
Financing Receivable, Originated Three Years before Latest Fiscal Year		200			10
Financing Receivable, Originated Four Years before Latest Fiscal Year		5			755
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		174			232
Financing Receivable, Revolving		627			736
Financing Receivable, after Allowance for Credit Loss		14			0
Loans and Leases Receivable, Gross	[1]	1,403			1,759
Small Business [Member] | Pass [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		38,804			28,766
Financing Receivable, Originated Two Years before Latest Fiscal Year		22,075			20,806
Financing Receivable, Originated Three Years before Latest Fiscal Year		14,241			14,627
Financing Receivable, Originated Four Years before Latest Fiscal Year		10,675			14,528
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		21,809			22,644
Financing Receivable, Revolving		32,679			34,569
Financing Receivable, after Allowance for Credit Loss		40,736			27,457
Loans and Leases Receivable, Gross	[1]	181,019			163,397
Small Business [Member] | Definite Weakness Loss Unlikely [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		637			408
Financing Receivable, Originated Two Years before Latest Fiscal Year		41			78
Financing Receivable, Originated Three Years before Latest Fiscal Year		26			170
Financing Receivable, Originated Four Years before Latest Fiscal Year		10			98
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		284			723
Financing Receivable, Revolving		580			786
Financing Receivable, after Allowance for Credit Loss		138			184
Loans and Leases Receivable, Gross	[1]	1,716			2,447
Small Business [Member] | Partial Loss Probable [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		0			0
Financing Receivable, Originated Two Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Three Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Four Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		0			0
Financing Receivable, Revolving		0			29
Financing Receivable, after Allowance for Credit Loss		0			0
Loans and Leases Receivable, Gross	[1]	0			29
Small Business [Member] | Definite Loss [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		0			0
Financing Receivable, Originated Two Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Three Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Four Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		0			0
Financing Receivable, Revolving		0			0
Financing Receivable, after Allowance for Credit Loss		0			0
Loans and Leases Receivable, Gross	[1]	0			0
Residential Real Estate [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		185,097			167,901
Financing Receivable, Originated Two Years before Latest Fiscal Year		92,723			187,954
Financing Receivable, Originated Three Years before Latest Fiscal Year		98,939			168,283
Financing Receivable, Originated Four Years before Latest Fiscal Year		102,581			241,805
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		465,560			453,943
Financing Receivable, Revolving		0			0
Financing Receivable, after Allowance for Credit Loss		277,949			132,419
Loans and Leases Receivable, Gross		1,222,849	[1]	$ 1,296,183	1,352,305	[1]
Residential Real Estate [Member] | Default [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		123			0
Financing Receivable, Originated Two Years before Latest Fiscal Year		0			760
Financing Receivable, Originated Three Years before Latest Fiscal Year		1,024			235
Financing Receivable, Originated Four Years before Latest Fiscal Year		0			167
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		2,163			4,724
Financing Receivable, Revolving		0			0
Financing Receivable, after Allowance for Credit Loss		0			728
Loans and Leases Receivable, Gross	[1]	3,310			6,614
Residential Real Estate [Member] | Pass [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		184,974			167,901
Financing Receivable, Originated Two Years before Latest Fiscal Year		92,723			187,194
Financing Receivable, Originated Three Years before Latest Fiscal Year		97,915			168,048
Financing Receivable, Originated Four Years before Latest Fiscal Year		102,581			241,638
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		463,397			449,219
Financing Receivable, Revolving		0			0
Financing Receivable, after Allowance for Credit Loss		277,949			131,691
Loans and Leases Receivable, Gross	[1]	1,219,539			1,345,691
Home Equity Loan [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		68,629			66,238
Financing Receivable, Originated Two Years before Latest Fiscal Year		42,083			59,534
Financing Receivable, Originated Three Years before Latest Fiscal Year		37,644			59,387
Financing Receivable, Originated Four Years before Latest Fiscal Year		41,792			44,817
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		117,521			122,852
Financing Receivable, Revolving		630,292			683,828
Financing Receivable, after Allowance for Credit Loss		58,897			60,274
Loans and Leases Receivable, Gross	[1]	1,000,468			1,101,054
Home Equity Loan [Member] | Default [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		0			0
Financing Receivable, Originated Two Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Three Years before Latest Fiscal Year		0
Financing Receivable, Originated Four Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		33			455
Financing Receivable, Revolving		1,717			2,044
Financing Receivable, after Allowance for Credit Loss		0			0
Loans and Leases Receivable, Gross	[1]	1,785			2,566
Home Equity Loan [Member] | Pass [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		68,629			66,238
Financing Receivable, Originated Two Years before Latest Fiscal Year		42,083			59,534
Financing Receivable, Originated Three Years before Latest Fiscal Year		37,644			59,387
Financing Receivable, Originated Four Years before Latest Fiscal Year		41,792			44,817
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		117,488			122,397
Financing Receivable, Revolving		628,575			681,784
Financing Receivable, after Allowance for Credit Loss		58,897			60,274
Loans and Leases Receivable, Gross	[1]	998,683			1,098,488
Consumer Loan [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		347			450
Financing Receivable, Originated Two Years before Latest Fiscal Year		244			209
Financing Receivable, Originated Three Years before Latest Fiscal Year		78			759
Financing Receivable, Originated Four Years before Latest Fiscal Year		500			696
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		5,338			7,771
Financing Receivable, Revolving		16,361			12,495
Financing Receivable, after Allowance for Credit Loss		307			679
Loans and Leases Receivable, Gross	[1]	23,175			23,059
Consumer Loan [Member] | Default [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		0			0
Financing Receivable, Originated Two Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Three Years before Latest Fiscal Year		0			20
Financing Receivable, Originated Four Years before Latest Fiscal Year		0			0
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		0			34
Financing Receivable, Revolving		2			2
Financing Receivable, after Allowance for Credit Loss		0			0
Loans and Leases Receivable, Gross	[1]	2			56
Consumer Loan [Member] | Pass [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Originated in Fiscal Year before Latest Fiscal Year		347			450
Financing Receivable, Originated Two Years before Latest Fiscal Year		244			209
Financing Receivable, Originated Three Years before Latest Fiscal Year		78			739
Financing Receivable, Originated Four Years before Latest Fiscal Year		500			696
Financing Receivable, Originated Five or More Years before Latest Fiscal Year		5,338			7,737
Financing Receivable, Revolving		16,359			12,493
Financing Receivable, after Allowance for Credit Loss		307			679
Loans and Leases Receivable, Gross	[1]	23,173			23,003
Revolving converted to term [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		5,810			24,169
Revolving converted to term [Member] | Commercial Real Estate [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		0			16,341
Revolving converted to term [Member] | Commercial Real Estate [Member] | Potential Weakness [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		0			0
Revolving converted to term [Member] | Commercial Real Estate [Member] | Pass [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		0			16,341
Revolving converted to term [Member] | Commercial Real Estate [Member] | Definite Weakness Loss Unlikely [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		0			0
Revolving converted to term [Member] | Commercial Real Estate [Member] | Partial Loss Probable [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		0			0
Revolving converted to term [Member] | Commercial Real Estate [Member] | Definite Loss [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		0			0
Revolving converted to term [Member] | Commercial And Industrial [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		66			2,627
Revolving converted to term [Member] | Commercial And Industrial [Member] | Potential Weakness [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		0			50
Revolving converted to term [Member] | Commercial And Industrial [Member] | Pass [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving	[2]	66			2,577
Revolving converted to term [Member] | Commercial And Industrial [Member] | Definite Weakness Loss Unlikely [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		0			0
Revolving converted to term [Member] | Commercial And Industrial [Member] | Partial Loss Probable [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		0			0
Revolving converted to term [Member] | Commercial And Industrial [Member] | Definite Loss [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		0			0
Revolving converted to term [Member] | Construction Loans [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		2,134			1,077
Revolving converted to term [Member] | Construction Loans [Member] | Potential Weakness [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		0			0
Revolving converted to term [Member] | Construction Loans [Member] | Pass [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		2,134			1,077
Revolving converted to term [Member] | Construction Loans [Member] | Definite Weakness Loss Unlikely [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		0			0
Revolving converted to term [Member] | Construction Loans [Member] | Partial Loss Probable [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		0			0
Revolving converted to term [Member] | Construction Loans [Member] | Definite Loss [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		0			0
Revolving converted to term [Member] | Small Business [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		0			0
Revolving converted to term [Member] | Small Business [Member] | Potential Weakness [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		0			0
Revolving converted to term [Member] | Small Business [Member] | Pass [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		0			0
Revolving converted to term [Member] | Small Business [Member] | Definite Weakness Loss Unlikely [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		0			0
Revolving converted to term [Member] | Small Business [Member] | Partial Loss Probable [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		0			0
Revolving converted to term [Member] | Small Business [Member] | Definite Loss [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		0			0
Revolving converted to term [Member] | Residential Real Estate [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		0			0
Revolving converted to term [Member] | Residential Real Estate [Member] | Default [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		0			0
Revolving converted to term [Member] | Residential Real Estate [Member] | Pass [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		0			0
Revolving converted to term [Member] | Home Equity Loan [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		3,610			4,124
Revolving converted to term [Member] | Home Equity Loan [Member] | Default [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		35			67
Revolving converted to term [Member] | Home Equity Loan [Member] | Pass [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		3,575			4,057
Revolving converted to term [Member] | Consumer Loan [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		0			0
Revolving converted to term [Member] | Consumer Loan [Member] | Default [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		0			0
Revolving converted to term [Member] | Consumer Loan [Member] | Pass [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Revolving		$ 0			$ 0

[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 $383.6 million as of September 30, 2021, including $16.3 million and $367.3 million originated in 2020 and 2021, respectively, while outstanding PPP loans as of September 30, 2020 totaled $811.7 million

XML

Loans, Allowance for Credit Losses and Credit Quality FICO and LTV (Details) - score		Sep. 30, 2021	Dec. 31, 2020
Residential Portfolio Segment [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable With Quality Of Loan Based On Weighted Average Fico Rating	[1]	750	749
Financing Receivable With Credit Quality Of Loan Based Upon the Weighted Average Loan-To-Value Ratio	[2]	55.40%	57.40%
Home Equity Line of Credit [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable With Quality Of Loan Based On Weighted Average Fico Rating	[1]	773	771
Financing Receivable With Credit Quality Of Loan Based Upon the Weighted Average Loan-To-Value Ratio	[2],[3]	43.30%	46.00%

[1] The average FICO scores at September 30, 2021 are based upon rescores from September 2021, as available for previously originated loans, or origination score data for loans booked in September 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 September 30, 2021 are based upon updated automated valuations as of August 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.

XML

Loans, Allowance for Credit Losses and Credit Quality Finance Receivable, Nonaccrual (Details) - USD ($) $ in Thousands		Sep. 30, 2021	Dec. 31, 2020
Financing Receivable, Nonaccrual [Line Items]
Finance Receivable, Nonaccrual, with allowance		$ 22,370	$ 31,332
Financing Receivable, Nonaccrual, No Allowance		23,440	35,528
Tdrs Recorded Investment On Nonaccrual Status		21,104	22,209
Financing Receivable Recorded Investment Trouble Debt Restructuring		37,054	39,192
Additional Commitments To Lend To Borrower For Trouble Debt Restructuring		352	263
Financing Receivable, Nonaccrual	[1]	45,810	66,860
Tdrs Recorded Investment On Accrual Status		15,950	16,983
Commercial And Industrial [Member]
Financing Receivable, Nonaccrual [Line Items]
Finance Receivable, Nonaccrual, with allowance		3,468	3,804
Financing Receivable, Nonaccrual, No Allowance		15,807	30,925
Financing Receivable, Nonaccrual		19,275	34,729
Commercial Real Estate [Member]
Financing Receivable, Nonaccrual [Line Items]
Finance Receivable, Nonaccrual, with allowance		8,541	10,195
Financing Receivable, Nonaccrual, No Allowance		3,247	0
Financing Receivable, Nonaccrual		11,788	10,195
Small Business [Member]
Financing Receivable, Nonaccrual [Line Items]
Finance Receivable, Nonaccrual, with allowance		46	815
Financing Receivable, Nonaccrual, No Allowance		0	10
Financing Receivable, Nonaccrual		46	825
Residential Real Estate [Member]
Financing Receivable, Nonaccrual [Line Items]
Finance Receivable, Nonaccrual, with allowance		6,486	10,935
Financing Receivable, Nonaccrual, No Allowance		4,386	4,593
Financing Receivable, Nonaccrual		10,872	15,528
Home Equity Line of Credit [Member]
Financing Receivable, Nonaccrual [Line Items]
Finance Receivable, Nonaccrual, with allowance		3,746	5,427
Financing Receivable, Nonaccrual, No Allowance		0	0
Financing Receivable, Nonaccrual		3,746	5,427
Consumer - Other [Member]
Financing Receivable, Nonaccrual [Line Items]
Finance Receivable, Nonaccrual, with allowance		83	156
Financing Receivable, Nonaccrual, No Allowance		0	0
Financing Receivable, Nonaccrual		$ 83	$ 156

[1] Included in these amounts were $21.1 million and $22.2 million of nonaccruing TDRs at September 30, 2021 and December 31, 2020, respectively.

XML

Loans, Allowance for Credit Losses and Credit Quality Foreclosed Residential Real Estate Property (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Foreclosed residential real estate property held by the creditor	$ 0	$ 0
Mortgage Loans in Process of Foreclosure, Amount	$ 1,215	$ 1,750

XML

Loans, Allowance for Credit Losses and Credit Quality Financing Receivable Past Due (Details) $ in Thousands		Sep. 30, 2021 USD ($) loan		Dec. 31, 2020 USD ($) loan	Sep. 30, 2020 USD ($)
Financing Receivable, Past Due [Line Items]
Number Of Financing Receivables Thirty To Fifty Nine Days Past Due | loan		268		301
Financing Receivable, 90 Days or More Past Due, Still Accruing		$ 0		$ 1
Loans and Leases Receivable, Gross		$ 8,808,013	[1]	$ 9,392,866	$ 9,405,193
Number Of Financing Receivables Total Past Due | loan		350		408
Number of Financing Receivables Sixty to Eighty Nine Days Past Due | loan		23		25
Number Of Financing Receivables Equal To Greater Than Ninety Days | loan		59		82
Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		$ 8,353		$ 4,168
Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		1,707		9,450
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		8,309		7,778
Financial Asset, Not Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		8,789,644		9,371,470
Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		$ 18,369		$ 21,396
Commercial And Industrial [Member]
Financing Receivable, Past Due [Line Items]
Number Of Financing Receivables Thirty To Fifty Nine Days Past Due | loan		2		2
Financing Receivable, 90 Days or More Past Due, Still Accruing		$ 0		$ 0
Loans and Leases Receivable, Gross		$ 1,640,709	[1]	$ 2,103,152	2,062,345	[1]
Number Of Financing Receivables Total Past Due | loan		3		11
Number of Financing Receivables Sixty to Eighty Nine Days Past Due | loan		1		1
Number Of Financing Receivables Equal To Greater Than Ninety Days | loan		0		8
Financing Receivable, before Allowance for Credit Loss		$ 1,640,709		$ 2,103,152
Commercial And Industrial [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		343		318
Commercial And Industrial [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		87		672
Commercial And Industrial [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		0		785
Commercial And Industrial [Member] | Financial Asset, Not Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		1,640,279		2,101,377
Commercial And Industrial [Member] | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		$ 430		$ 1,775
Commercial Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Number Of Financing Receivables Thirty To Fifty Nine Days Past Due | loan		6		3
Financing Receivable, 90 Days or More Past Due, Still Accruing		$ 0		$ 0
Loans and Leases Receivable, Gross		$ 4,221,259	[1]	$ 4,173,927	4,125,464	[1]
Number Of Financing Receivables Total Past Due | loan		12		7
Number of Financing Receivables Sixty to Eighty Nine Days Past Due | loan		1		0
Number Of Financing Receivables Equal To Greater Than Ninety Days | loan		5		4
Financing Receivable, before Allowance for Credit Loss		$ 4,221,259		$ 4,173,927
Commercial Real Estate [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		5,142		409
Commercial Real Estate [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		487		0
Commercial Real Estate [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		3,674		515
Commercial Real Estate [Member] | Financial Asset, Not Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		4,211,956		4,173,003
Commercial Real Estate [Member] | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		$ 9,303		$ 924
Construction Loans [Member]
Financing Receivable, Past Due [Line Items]
Number Of Financing Receivables Thirty To Fifty Nine Days Past Due | loan		0		0
Financing Receivable, 90 Days or More Past Due, Still Accruing		$ 0		$ 0
Loans and Leases Receivable, Gross		$ 515,415	[1]	$ 553,929	573,334	[1]
Number Of Financing Receivables Total Past Due | loan		0		2
Number of Financing Receivables Sixty to Eighty Nine Days Past Due | loan		0		2
Number Of Financing Receivables Equal To Greater Than Ninety Days | loan		0		0
Financing Receivable, before Allowance for Credit Loss		$ 515,415		$ 553,929
Construction Loans [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		0		0
Construction Loans [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		0		2,794
Construction Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		0		0
Construction Loans [Member] | Financial Asset, Not Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		515,415		551,135
Construction Loans [Member] | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		$ 0		$ 2,794
Small Business [Member]
Financing Receivable, Past Due [Line Items]
Number Of Financing Receivables Thirty To Fifty Nine Days Past Due | loan		8		14
Financing Receivable, 90 Days or More Past Due, Still Accruing		$ 0		$ 0
Loans and Leases Receivable, Gross		$ 184,138	[1]	$ 175,023	167,632	[1]
Number Of Financing Receivables Total Past Due | loan		15		24
Number of Financing Receivables Sixty to Eighty Nine Days Past Due | loan		2		6
Number Of Financing Receivables Equal To Greater Than Ninety Days | loan		5		4
Financing Receivable, before Allowance for Credit Loss		$ 184,138		$ 175,023
Small Business [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		243		421
Small Business [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		35		273
Small Business [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		27		59
Small Business [Member] | Financial Asset, Not Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		183,833		174,270
Small Business [Member] | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		$ 305		$ 753
Residential Real Estate [Member]
Financing Receivable, Past Due [Line Items]
Number Of Financing Receivables Thirty To Fifty Nine Days Past Due | loan		13		12
Financing Receivable, 90 Days or More Past Due, Still Accruing		$ 0		$ 0
Loans and Leases Receivable, Gross		$ 1,222,849	[1]	$ 1,296,183	$ 1,352,305	[1]
Number Of Financing Receivables Total Past Due | loan		37		47
Number of Financing Receivables Sixty to Eighty Nine Days Past Due | loan		2		8
Number Of Financing Receivables Equal To Greater Than Ninety Days | loan		22		27
Financing Receivable, before Allowance for Credit Loss		$ 1,222,849		$ 1,296,183
Residential Real Estate [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		2,037		2,150
Residential Real Estate [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		848		5,507
Residential Real Estate [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		2,822		3,648
Residential Real Estate [Member] | Financial Asset, Not Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		1,217,142		1,284,878
Residential Real Estate [Member] | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		$ 5,707		$ 11,305
Home Equity Line of Credit [Member]
Financing Receivable, Past Due [Line Items]
Number Of Financing Receivables Thirty To Fifty Nine Days Past Due | loan		9		10
Financing Receivable, 90 Days or More Past Due, Still Accruing		$ 0		$ 0
Loans and Leases Receivable, Gross		$ 1,000,468		$ 1,068,790
Number Of Financing Receivables Total Past Due | loan		38		48
Number of Financing Receivables Sixty to Eighty Nine Days Past Due | loan		5		5
Number Of Financing Receivables Equal To Greater Than Ninety Days | loan		24		33
Home Equity Line of Credit [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		$ 479		$ 733
Home Equity Line of Credit [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		218		203
Home Equity Line of Credit [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		1,784		2,633
Home Equity Line of Credit [Member] | Financial Asset, Not Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		997,987		1,065,221
Home Equity Line of Credit [Member] | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss		$ 2,481		$ 3,569
Consumer - Other [Member]
Financing Receivable, Past Due [Line Items]
Number Of Financing Receivables Thirty To Fifty Nine Days Past Due | loan	[2]	230		260
Financing Receivable, 90 Days or More Past Due, Still Accruing	[2]	$ 0		$ 1
Loans and Leases Receivable, Gross	[2]	$ 23,175		$ 21,862
Number Of Financing Receivables Total Past Due | loan	[2]	245		269
Number of Financing Receivables Sixty to Eighty Nine Days Past Due | loan	[2]	12		3
Number Of Financing Receivables Equal To Greater Than Ninety Days | loan	[2]	3		6
Financing Receivable, before Allowance for Credit Loss		$ 23,175		$ 21,862
Consumer - Other [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	[2]	109		137
Consumer - Other [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	[2]	32		1
Consumer - Other [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	[2]	2		138
Consumer - Other [Member] | Financial Asset, Not Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	[2]	23,032		21,586
Consumer - Other [Member] | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	[2]	$ 143		$ 276

[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] Other consumer portfolio is inclusive of deposit account overdrafts recorded as loan balances.

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Loans, Allowance for Credit Losses and Credit Quality Troubled Debt Restructurings (Details) $ in Thousands		3 Months Ended			9 Months Ended
		Sep. 30, 2021 USD ($) contract	Sep. 30, 2020 USD ($) contract		Sep. 30, 2021 USD ($) contract		Sep. 30, 2020 USD ($) contract
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Modifications, Number of Contracts | contract		0	5		8		17
Financing Receivable, Troubled Debt Restructuring, Premodification	[1]		$ 827		$ 18,301		$ 3,580
Financing Receivable, Troubled Debt Restructuring, Postmodification		$ 0	$ 827	[1]	$ 18,301	[1]	$ 3,639	[1]
Commercial And Industrial [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Modifications, Number of Contracts | contract		0	2		1		5
Financing Receivable, Troubled Debt Restructuring, Premodification		$ 0	$ 83		$ 14,148		$ 391
Financing Receivable, Troubled Debt Restructuring, Postmodification		$ 0	$ 83		$ 14,148		$ 391
Commercial Real Estate [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Modifications, Number of Contracts | contract		0	3		5		8
Financing Receivable, Troubled Debt Restructuring, Premodification		$ 0	$ 744		$ 3,964		$ 2,518
Financing Receivable, Troubled Debt Restructuring, Postmodification		$ 0	$ 744		$ 3,964		$ 2,518
Small Business [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Modifications, Number of Contracts | contract		0	0		2		2
Financing Receivable, Troubled Debt Restructuring, Premodification		$ 0	$ 0		$ 189		$ 112
Financing Receivable, Troubled Debt Restructuring, Postmodification		$ 0	$ 0		$ 189		$ 88
Residential Real Estate [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Modifications, Number of Contracts | contract			0				2
Financing Receivable, Troubled Debt Restructuring, Premodification			$ 0				$ 559
Financing Receivable, Troubled Debt Restructuring, Postmodification			$ 0				$ 642

[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 September 30, 2021, $14.3 million of modifications on existing TDRs during the nine months ended September 30, 2021, and $83,000 and $1.5 million of modifications on existing TDRs during the three and nine months ended September 30, 2020, respectively.

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Loans, Allowance for Credit Losses and Credit Quality Schedule of Debtor Troubled Debt Restructurings, Subsequent Period (Details) $ in Thousands		3 Months Ended			9 Months Ended
		Sep. 30, 2021 USD ($) contract	Sep. 30, 2020 USD ($) contract		Sep. 30, 2021 USD ($) contract		Sep. 30, 2020 USD ($) contract
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Financing Receivable, Modifications, Number of Contracts | contract		0	5		8		17
Financing Receivable, Troubled Debt Restructuring, Premodification	[1]		$ 827		$ 18,301		$ 3,580
Financing Receivable, Troubled Debt Restructuring, Postmodification		$ 0	$ 827	[1]	$ 18,301	[1]	$ 3,639	[1]
Commercial And Industrial [Member]
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Financing Receivable, Modifications, Number of Contracts | contract		0	2		1		5
Financing Receivable, Troubled Debt Restructuring, Premodification		$ 0	$ 83		$ 14,148		$ 391
Financing Receivable, Troubled Debt Restructuring, Postmodification		$ 0	$ 83		$ 14,148		$ 391
Commercial Real Estate [Member]
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Financing Receivable, Modifications, Number of Contracts | contract		0	3		5		8
Financing Receivable, Troubled Debt Restructuring, Premodification		$ 0	$ 744		$ 3,964		$ 2,518
Financing Receivable, Troubled Debt Restructuring, Postmodification		$ 0	$ 744		$ 3,964		$ 2,518
Small Business [Member]
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Financing Receivable, Modifications, Number of Contracts | contract		0	0		2		2
Financing Receivable, Troubled Debt Restructuring, Premodification		$ 0	$ 0		$ 189		$ 112
Financing Receivable, Troubled Debt Restructuring, Postmodification		$ 0	$ 0		$ 189		$ 88
Residential Real Estate [Member]
Troubled Debt Restructuring, Debtor, Subsequent Periods [Line Items]
Financing Receivable, Modifications, Number of Contracts | contract			0				2
Financing Receivable, Troubled Debt Restructuring, Premodification			$ 0				$ 559
Financing Receivable, Troubled Debt Restructuring, Postmodification			$ 0				$ 642

[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 September 30, 2021, $14.3 million of modifications on existing TDRs during the nine months ended September 30, 2021, and $83,000 and $1.5 million of modifications on existing TDRs during the three and nine months ended September 30, 2020, respectively.

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Loans, Allowance for Credit Losses and Credit Quality TDR on Financing Receivables Post Modification (Details) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020		Sep. 30, 2021		Sep. 30, 2020
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0	$ 827,000	[1]	$ 18,301,000	[1]	$ 3,639,000	[1]
Financing Receivable, Troubled Debt Restructuring, Increase (Decrease) from Modification						3,639,000
Financing Receivable, Troubled Debt Restructuring, Subsequent Default		0		3,200,000		0
Contractual Interest Rate Reduction [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification	0	218,000		0		822,000
Court ordered concession
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification	0	0		0		25,000
Extended Maturity [Member]
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification	0	609,000		4,153,000		2,792,000
Combination rate and maturity
Financing Receivable, Troubled Debt Restructuring [Line Items]
Financing Receivable, Troubled Debt Restructuring, Postmodification	$ 0	$ 0		$ 14,148,000		$ 0

[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 September 30, 2021, $14.3 million of modifications on existing TDRs during the nine months ended September 30, 2021, and $83,000 and $1.5 million of modifications on existing TDRs during the three and nine months ended September 30, 2020, respectively.

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Loans, Allowance for Credit Losses and Credit Quality Textual (Details)		3 Months Ended				9 Months Ended
		Sep. 30, 2021 USD ($)		Sep. 30, 2020 USD ($)		Sep. 30, 2021 USD ($) loan		Sep. 30, 2020 USD ($)		Dec. 31, 2020 USD ($)
Financing Receivable, Allowance for Credit Loss [Line Items]
Days To Be Termed As Non Accrual Loans						90 days
Financing Receivable, Allowance for Credit Loss, Period Increase (Decrease) by percentage		(9.90%)
Provision for credit losses		$ (10,000,000)		$ 7,500,000		$ (17,500,000)		$ 52,500,000
Interest Receivable		29,100,000		36,700,000		29,100,000		36,700,000
Off-Balance Sheet, Credit Loss, Liability		1,300,000				1,300,000				$ 1,200,000
Loans with active Deferrals		222,900,000				222,900,000				173,600,000
Allowance for Loan and Lease Losses, Write-offs		(332,000)
Financing Receivable, Troubled Debt Restructuring, Increase (Decrease) from Modification								3,639,000
us-gaap_FinancingReceivableTroubledDebtRestructuringIncreaseDecreaseFromModification		14,300,000		83,000				1,500,000
Financing Receivable, after Allowance for Credit Loss		1,845,455,000		2,199,885,000		1,845,455,000		2,199,885,000
Financing Receivable, Troubled Debt Restructuring, Subsequent Default				0		$ 3,200,000		0
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | loan						1
Loans with active Deferrals		222,900,000				$ 222,900,000				173,600,000
Financing Receivable, Allowance for Credit Losses, Effect of Change in Method	[1]							(1,137,000)
Interest Receivable		29,100,000		36,700,000		29,100,000		36,700,000
Loans and Leases Receivable, Allowance		(92,246,000)	[2]	(115,625,000)	[2]	(92,246,000)	[2]	(115,625,000)	[2]	(113,392,000)
Off-Balance Sheet, Credit Loss, Liability		1,300,000				1,300,000				1,200,000
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease)		10,100,000
Financing Receivable, Troubled Debt Restructuring, Subsequent Default				0		3,200,000		0
US Government Insured Loan Program [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing Receivable, before Allowance for Credit Loss		367,300,000		811,700,000		367,300,000		811,700,000		16,300,000
Commercial And Industrial [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Provision for credit losses				2,741,000		(1,698,000)		12,698,000
Financing Receivable, before Allowance for Credit Loss		1,640,709,000				1,640,709,000				$ 2,103,152,000
Allowance for Loan and Lease Losses, Write-offs		(1,000)
Financing Receivable, after Allowance for Credit Loss		608,467,000		1,018,266,000		608,467,000		1,018,266,000
Financing Receivable, Allowance for Credit Losses, Effect of Change in Method	[1]							(1,984,000)
Loans and Leases Receivable, Allowance	[2]	(16,014,000)		(28,219,000)		(16,014,000)		(28,219,000)
Commercial And Industrial [Member] | Definite Weakness Loss Unlikely [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing Receivable, after Allowance for Credit Loss		16,597,000		$ 2,732,000		16,597,000		$ 2,732,000
Loans Insured or Guaranteed by US Government Authorities
Financing Receivable, Allowance for Credit Loss [Line Items]
Financing Receivable, before Allowance for Credit Loss		$ 383,600,000				$ 383,600,000

[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] Balances of accrued interest receivable excluded from amortized cost and the calculation of allowance for credit losses amounted to $29.1 million and $36.7 million as of September 30, 2021 and September 30, 2020, respectively.

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Stock Based Compensation (Awards of Restricted Stock) (Details) - Restricted Stock [Member]	9 Months Ended
	Sep. 30, 2021 $ / shares shares
Ratably Over Period [Member] | 2/18/2021 | Employee Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Granted | shares	49,550
Grant Date Fair Value Per Share | $ / shares	$ 81.84
Vesting Period	Ratably over 5 years from grant date
Immediate Vest on grant date [Member] | 5/25/2021 | Two Thousand Eighteen Nonemployee Director Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Granted | shares	7,680
Grant Date Fair Value Per Share | $ / shares	$ 78.18
Vesting Period	Shares vested immediately
Immediate Vest on grant date [Member] | 9/1/2021 | Two Thousand Eighteen Nonemployee Director Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Granted | shares	640
Grant Date Fair Value Per Share | $ / shares	$ 76.78
Vesting Period	Shares vested immediately

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Stock Based Compensation Performance-based Restricted Stock Textual (Details) - Employee Stock Plan [Member] - Performance Shares [Member]	9 Months Ended
	Sep. 30, 2021 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted	18,900
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares	$ 81.84
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	85.00%
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	13,005

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Derivatives and Hedging Activities (Derivative Positions for Interest Rate Swaps which Qualify as Hedges) (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Details of derivative positions for interest rate swaps which qualify as hedges for accounting purposes
Change in Fair Value on Loans Held for Sale	$ (75,000)	$ 413,000	$ (1,534,000)	$ 1,252,000
Fair Value Hedges, Net	0		0		$ 0
Interest Receivable	29,100,000	$ 36,700,000	29,100,000	$ 36,700,000
Derivative, Net Liability Position, Aggregate Fair Value	35,900,000		35,900,000		79,800,000
Exposure to Institutional Counterparties	37,100,000		37,100,000		48,800,000
Exposure To Counterparties Relating To Customer Related Positions	71,800,000		71,800,000		127,200,000
Interest rate collars on loans [Member]
Details of derivative positions for interest rate swaps which qualify as hedges for accounting purposes
Derivative, Notional Amount	$ 400,000,000		$ 400,000,000		$ 400,000,000
Derivative, Average Remaining Maturity			1 year 10 months 28 days		2 years 7 months 28 days
Derivative, Average Variable Interest Rate	0.08%		0.08%		0.15%
Fair Value	$ 13,971,000		$ 13,971,000		$ 21,764,000
Derivative, Average Cap Interest Rate	2.73%		2.73%		2.73%
Derivative, Average Floor Interest Rate	2.20%		2.20%		2.20%
Interest rate swaps on loans [Member]
Details of derivative positions for interest rate swaps which qualify as hedges for accounting purposes
Derivative, Notional Amount	$ 550,000,000		$ 550,000,000		$ 450,000,000
Derivative, Average Remaining Maturity			2 years 9 months 29 days		2 years 7 months 28 days
Derivative, Average Variable Interest Rate	0.08%		0.08%		0.15%
Derivative, Average Fixed Interest Rate	2.16%		2.16%		2.37%
Fair Value	$ 18,016,000		$ 18,016,000		$ 27,021,000
Interest rate swaps on borrowings [Member]
Details of derivative positions for interest rate swaps which qualify as hedges for accounting purposes
Derivative, Notional Amount	$ 75,000,000		$ 75,000,000		$ 75,000,000
Derivative, Average Remaining Maturity			5 months 4 days		1 year 2 months 4 days
Derivative, Average Variable Interest Rate	0.12%		0.12%		0.22%
Derivative, Average Fixed Interest Rate	1.53%		1.53%		1.53%
Fair Value	$ (593,000)		$ (593,000)		$ (1,341,000)
Interest rate swaps
Details of derivative positions for interest rate swaps which qualify as hedges for accounting purposes
Derivative, Notional Amount	1,025,000,000		1,025,000,000		925,000,000
Fair Value	31,394,000		31,394,000		47,444,000
Interest Receivable	1,200,000		1,200,000		1,200,000
Interest Payable, Current	$ (60,000)		$ (60,000)		$ (81,000)

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Derivatives and Hedging Activities (Customer Related Derivative Positions - Not Designated as Hedges) (Details) - Not Designated as Hedging Instrument $ in Thousands		Sep. 30, 2021 USD ($) position	Dec. 31, 2020 USD ($) position
Receive fixed, pay variable | Loan level swaps
Summary of customer related derivative positions, not designated as hedging
Number of Positions | position	[1]	293	322
Less than 1 year		$ 30,047	$ 102,999
Less than 2 years		148,874	76,487
Less than 3 years		129,939	149,265
Less than 4 years		288,580	147,422
Thereafter		980,166	1,222,557
Derivative, Notional Amount		1,577,606	1,698,730
Fair Value		$ 67,126	$ 127,226
Pay fixed, receive variable | Loan level swaps
Summary of customer related derivative positions, not designated as hedging
Number of Positions | position	[1]	293	313
Less than 1 year		$ 30,047	$ 102,999
Less than 2 years		148,874	76,487
Less than 3 years		129,939	149,265
Less than 4 years		288,580	147,422
Thereafter		980,166	1,222,557
Derivative, Notional Amount		1,577,606	1,698,730
Fair Value		$ (67,122)	$ (127,216)
Buys foreign currency, sells U.S. currency | Foreign exchange contracts
Summary of customer related derivative positions, not designated as hedging
Number of Positions | position	[1]	45	33
Less than 1 year		$ 148,253	$ 87,557
Less than 2 years		6,087	5,300
Less than 3 years		0	0
Less than 4 years		0	0
Thereafter		0	0
Derivative, Notional Amount		154,340	92,857
Fair Value		$ (5,529)	$ (4,214)
Buys U.S. currency, sells foreign currency | Foreign exchange contracts
Summary of customer related derivative positions, not designated as hedging
Number of Positions | position	[1]	45	33
Less than 1 year		$ 148,253	$ 87,557
Less than 2 years		6,087	5,300
Less than 3 years		0	0
Less than 4 years		0	0
Thereafter		0	0
Derivative, Notional Amount		154,340	92,857
Fair Value		$ 5,530	$ 4,224
Risk Participated Out | Risk Participation Agreement
Summary of customer related derivative positions, not designated as hedging
Number of Positions | position		11	12
Less than 1 year			$ 6,721
Less than 2 years		$ 2,645	0
Less than 3 years			2,675
Less than 4 years		31,719	7,307
Thereafter		67,767	93,378
Derivative, Notional Amount		102,131	110,081
Fair Value		$ 236	$ 512
Risk Participated In | Risk Participation Agreement
Summary of customer related derivative positions, not designated as hedging
Number of Positions | position		7	8
Less than 1 year		$ 18,450	$ 0
Less than 2 years		23,375	30,649
Less than 3 years		16,768	29,072
Less than 4 years			0
Thereafter		8,372	15,844
Derivative, Notional Amount		66,965	75,565
Fair Value		$ (64)	$ (118)

[1] The Company may enter into one dealer swap agreement which offsets multiple commercial borrower swap agreements.

XML

Derivatives and Hedging Activities (FV of Derivative Financial Instruments and Classification on Balance Sheet) (Details) - USD ($) $ in Thousands		Sep. 30, 2021	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
Derivative Asset	[1]	$ 111,550	$ 187,422
Derivative Liability	[2]	76,696	117,959
Derivative Asset, Fair Value, Amount Offset Against Collateral	[1]	74,636	138,636
Derivative, Collateral, Obligation to Return Securities	[3]	36,914	48,786
Derivative, Collateral, Right to Reclaim Securities	[3]	36,914	48,786
Derivative, Collateral, Obligation to Return Cash		0	0
Derivative, Collateral, Right to Reclaim Cash		33,249	62,460
Derivative Liability, Fair Value, Amount Offset Against Collateral	[2]	6,533	6,713
Other Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value	[1]	83,978	138,613
Derivative Asset, Fair Value, Gross Asset	[1]	116,358	187,399
Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value	[2]	82,164	132,722
Liability Derivatives	[2]	83,150	134,064
Interest rate swaps [Member] | Derivatives designated as hedges [Member] | Other Assets [Member]
Derivatives, Fair Value [Line Items]
Interest Rate Derivative Assets, at Fair Value	[1],[4]	32,380	48,786
Interest rate swaps [Member] | Derivatives designated as hedges [Member] | Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Interest Rate Derivative Liabilities, at Fair Value	[2],[5]	986	1,342
Loan level swaps [Member] | Other Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	[1],[4]	76,552	127,228
Loan level swaps [Member] | Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Liability Derivatives	[2],[5]	76,548	127,218
Foreign exchange contracts | Other Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Fair Value, Gross Asset	[1]	5,531	4,359
Foreign exchange contracts | Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Liability Derivatives	[2]	5,530	4,349
Risk Participation Agreement | Other Assets [Member]
Derivatives, Fair Value [Line Items]
Credit Risk Derivative Assets, at Fair Value	[1]	236	513
Risk Participation Agreement | Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Credit Risk Derivative Liabilities, at Fair Value	[2]	64	119
Interest Rate Lock Commitments [Member] | Not Designated as Hedging Instrument | Other Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Instrument Not Designated as a Hedge, Interest Rate Lock Commitments, Asset at Fair Value	[1]	1,202	6,513
Derivative Instrument Not Designated as a Hedge, Forward Sales Agreements, Asset at Fair Value	[1]	0	0
Derivative Instrument Not Designated as a Hedge, Forward Sale Hedge Commitment, Asset at Fair Value	[1]	457	0
Interest Rate Lock Commitments [Member] | Not Designated as Hedging Instrument | Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Instrument Not Designated as a Hedge, Interest Rate Lock Commitments, Liabilities at Fair Value	[2]	0	0
Derivative Instrument Not Designated as a Hedge, Forward Sales Agreements, Liabilities at Fair Value	[2]	22	1
Derivative Instrument Not Designated as a Hedge, Forward Sale Hedge Commitment, Liability at Fair Value	[2]	0	1,035
CME [Member]
Derivatives, Fair Value [Line Items]
Derivative, Collateral, Obligation to Return Cash	[6]	4,808	(23)
Derivative, Collateral, Right to Reclaim Cash	[6]	$ 6,454	$ 16,105

[1] All asset derivatives are located in other assets on the balance sheet.

[2] All liability derivatives are located in other liabilities on the balance sheet.

[3] Reflects offsetting derivative positions with the same counterparty that are not netted on the balance sheet.

[4] Approximately $1.2 million and $1.6 million of accrued interest receivable is included in the fair value of the interest rate and loan level asset derivatives, respectively, as of September 30, 2021. Accrued interest receivable of approximately $1.2 million and $2.0 million is included in the fair value of the interest rate and loan level asset derivatives, respectively, as of December 31, 2020.

[5] Approximately $60,000 and $1.6 million of accrued interest payable is included in the fair value of the interest rate and loan level liability derivatives, respectively, as of September 30, 2021. Accrued interest payable of approximately $81,000 and $2.0 million is included in the fair value of the interest rate and loan level derivative liabilities, respectively, as of December 31, 2020.

[6] Netting adjustments represent the amounts recorded to convert derivative assets and liabilities cleared through CME from a gross basis to a net basis, inclusive of the variation margin payments, in accordance with applicable accounting guidance. As displayed in the table above, derivatives that cleared through the CME were either in a net asset position or a net liability position as of September 30, 2021.

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Derivatives and Hedging Activities (Derivative Financial Instruments included in OCI and Current Earnings) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax	$ (3,383)	$ (2,729)	$ (11,559)	$ 20,452
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Loss on Termination of Derivatives, before Tax	0	(684)	0	(684)
Derivatives designated as hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain reclassified from OCI into interest income or interest expense (effective portion)	4,791	4,339	13,869	9,901
Derivative, Excluded Component, Gain (Loss), Recognized in Earnings	0	0	0	0
Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Other income	(239)	2,020	(4,077)	4,647
Interest Expense [Member] | Derivatives designated as hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Excluded Component, Gain (Loss), Recognized in Earnings	0	0	0	0
Other expense | Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Other income	54	21	137	46
Changes in fair value of mortgage derivatives | Derivatives designated as hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, Excluded Component, Gain (Loss), Recognized in Earnings	0	0	0	0
Changes in fair value of mortgage derivatives | Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Other income	(80)	(28)	(374)	(52)
Total | Not Designated as Hedging Instrument
Derivative Instruments, Gain (Loss) [Line Items]
Mortgage banking income	(213)	2,027	(3,840)	4,653
Derivatives designated as hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax	$ (3,383)	$ (2,729)	$ (11,559)	$ 20,452

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Derivatives and Hedging Activities (Textual) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Derivative [Line Items]
Interest Receivable	$ 29,100,000	$ 36,700,000	$ 29,100,000	$ 36,700,000
Derivative, Net Liability Position, Aggregate Fair Value	35,900,000		$ 35,900,000		$ 79,800,000
Maximum Length of Time Hedged in Interest Rate Cash Flow Hedge			7 years 6 months
Gain (Loss) on Sales of Loans, Net	4,900,000	10,000,000	$ 17,200,000	20,700,000
Exposure to Institutional Counterparties	37,100,000		37,100,000		48,800,000
Customer related positions	71,800,000		71,800,000		127,200,000
Fair Value Hedges, Net	0		0		0
Change in Fair Value on Loans Held for Sale	(75,000)	413,000	(1,534,000)	1,252,000
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Loss on Termination of Derivatives, before Tax	0	$ 684,000	0	$ 684,000
Interest rate swaps
Derivative [Line Items]
Interest Receivable	1,200,000		1,200,000		1,200,000
Derivative, Notional Amount	1,025,000,000		1,025,000,000		925,000,000
Interest Payable, Current	$ (60,000)		$ (60,000)		$ (81,000)
Interest rate collars on loans [Member]
Derivative [Line Items]
Derivative, Average Cap Interest Rate	2.73%		2.73%		2.73%
Derivative, Average Floor Interest Rate	2.20%		2.20%		2.20%
Derivative, Notional Amount	$ 400,000,000		$ 400,000,000		$ 400,000,000
Loan level swaps
Derivative [Line Items]
Interest Receivable	1,600,000		1,600,000		2,000,000
Interest Payable, Current	(1,600,000)		(1,600,000)		(2,000,000)
Interest rate swaps on borrowings [Member]
Derivative [Line Items]
Derivative, Notional Amount	$ 75,000,000		75,000,000		$ 75,000,000
Interest Income [Member]
Derivative [Line Items]
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months			19,000,000
Interest Expense [Member]
Derivative [Line Items]
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months			$ (509,000)

XML

Fair Value Measurements (Details 1) - USD ($) $ in Thousands		Sep. 30, 2021	Dec. 31, 2020
ASSETS
Trading		$ 3,504	$ 2,838
Equity Securities, FV-NI		22,794	22,107
Debt Securities, Available-for-sale		1,427,210	412,860
U.S. government agency securities
ASSETS
Debt Securities, Available-for-sale		217,345	24,116
Agency mortgage-backed securities
ASSETS
Debt Securities, Available-for-sale		297,219	233,629
Pooled trust preferred securities issued by banks and insurers
ASSETS
Debt Securities, Available-for-sale		1,010	1,056
Small Business Administration Pooled Securities [Member]
ASSETS
Debt Securities, Available-for-sale		54,368	61,081
US Treasury Securities [Member]
ASSETS
Debt Securities, Available-for-sale		770,002
Recurring fair value measurements
ASSETS
Trading		3,504	2,838
LIABILITIES
TOTAL RECURRING FAIR VALUE MEASUREMENTS		1,520,269	549,244
Recurring fair value measurements | Equity Securities [Member]
ASSETS
Equity Securities, FV-NI		22,794	22,107
Recurring fair value measurements | U.S. government agency securities
ASSETS
Debt Securities, Available-for-sale		217,345	24,116
Recurring fair value measurements | Agency mortgage-backed securities
ASSETS
Debt Securities, Available-for-sale		297,219	233,629
Recurring fair value measurements | Agency collateralized mortgage obligations
ASSETS
Debt Securities, Available-for-sale		86,487	91,683
Recurring fair value measurements | Municipal Bonds [Member]
ASSETS
Debt Securities, Available-for-sale		288	807
Recurring fair value measurements | Single issuer trust preferred securities issued by banks and insurers
ASSETS
Debt Securities, Available-for-sale		491	488
Recurring fair value measurements | Pooled trust preferred securities issued by banks and insurers
ASSETS
Debt Securities, Available-for-sale		1,010	1,056
Recurring fair value measurements | Small Business Administration Pooled Securities [Member]
ASSETS
Debt Securities, Available-for-sale		54,368	61,081
Recurring fair value measurements | Loans held for sale
ASSETS
Loans Held-for-sale, Fair Value Disclosure		33,553	58,104
Recurring fair value measurements | Derivative Financial Instruments, Assets [Member]
ASSETS
Derivative Asset, Fair Value, Gross Asset		116,358	187,399
Recurring fair value measurements | Derivative instruments
LIABILITIES
Financial and Nonfinancial Liabilities, Fair Value Disclosure		83,150	134,064
Recurring fair value measurements | US Treasury Securities [Member]
ASSETS
Debt Securities, Available-for-sale		770,002
Nonrecurring fair value measurements
LIABILITIES
TOTAL NONRECURRING FAIR VALUE MEASUREMENTS		34,799	31,510
Nonrecurring fair value measurements | Collateral Dependent Loans [Member]
ASSETS
Assets, Fair Value Disclosure	[1]	34,799	31,510
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements
ASSETS
Trading		3,504	2,838
LIABILITIES
TOTAL RECURRING FAIR VALUE MEASUREMENTS		26,298	24,945
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | Equity Securities [Member]
ASSETS
Equity Securities, FV-NI		22,794	22,107
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | Municipal Bonds [Member]
ASSETS
Debt Securities, Available-for-sale			0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | Small Business Administration Pooled Securities [Member]
ASSETS
Debt Securities, Available-for-sale		0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Nonrecurring fair value measurements
LIABILITIES
TOTAL NONRECURRING FAIR VALUE MEASUREMENTS		0	0
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements
LIABILITIES
TOTAL RECURRING FAIR VALUE MEASUREMENTS		1,493,971	524,299
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Equity Securities [Member]
ASSETS
Equity Securities, FV-NI		0	0
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | U.S. government agency securities
ASSETS
Debt Securities, Available-for-sale		217,345	24,116
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Agency mortgage-backed securities
ASSETS
Debt Securities, Available-for-sale		297,219	233,629
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Agency collateralized mortgage obligations
ASSETS
Debt Securities, Available-for-sale		86,487	91,683
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Municipal Bonds [Member]
ASSETS
Debt Securities, Available-for-sale		288	807
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Single issuer trust preferred securities issued by banks and insurers
ASSETS
Debt Securities, Available-for-sale		491	488
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Pooled trust preferred securities issued by banks and insurers
ASSETS
Debt Securities, Available-for-sale		1,010	1,056
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Small Business Administration Pooled Securities [Member]
ASSETS
Debt Securities, Available-for-sale		54,368	61,081
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Loans held for sale
ASSETS
Loans Held-for-sale, Fair Value Disclosure		33,553	58,104
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Derivative Financial Instruments, Assets [Member]
ASSETS
Derivative Asset, Fair Value, Gross Asset		116,358	187,399
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Derivative instruments
LIABILITIES
Financial and Nonfinancial Liabilities, Fair Value Disclosure		83,150	134,064
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | US Treasury Securities [Member]
ASSETS
Debt Securities, Available-for-sale		770,002
Significant Other Observable Inputs (Level 2) | Nonrecurring fair value measurements
LIABILITIES
TOTAL NONRECURRING FAIR VALUE MEASUREMENTS		0	0
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements
LIABILITIES
TOTAL RECURRING FAIR VALUE MEASUREMENTS		0	0
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | Equity Securities [Member]
ASSETS
Equity Securities, FV-NI		0	0
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | Municipal Bonds [Member]
ASSETS
Debt Securities, Available-for-sale			0
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | Small Business Administration Pooled Securities [Member]
ASSETS
Debt Securities, Available-for-sale		0	0
Significant Unobservable Inputs (Level 3) | Nonrecurring fair value measurements
LIABILITIES
TOTAL NONRECURRING FAIR VALUE MEASUREMENTS		34,799	31,510
Significant Unobservable Inputs (Level 3) | Nonrecurring fair value measurements | Collateral Dependent Loans [Member]
ASSETS
Assets, Fair Value Disclosure	[1]	$ 34,799	$ 31,510

[1] The fair value of individually assessed collateral dependent loans is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of these possible adjustments may vary.

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Fair Value Measurements (Details 2) - USD ($) $ in Thousands		Sep. 30, 2021	Dec. 31, 2020
ASSETS
Debt Securities, Held-to-maturity		$ 865,249	$ 724,512
Held to Maturity, Fair Value, Total		875,306	752,177
Loans, net of allowance for credit losses (b)		8,715,767	9,279,474
Federal Home Loan Bank Stock		8,666	10,250
Bank Owned Life Insurance		244,573	200,525
LIABILITIES
Federal Home Loan Bank borrowings (f)		25,675	35,740
Long-term Debt	[1]	18,750	32,773
Long-term Debt, Fair Value	[1]	18,571	32,033
Subordinated Debt		49,767	49,696
Deposits [Member]
LIABILITIES
Time certificates of deposits (f)	[2]	11,474,578	10,042,541
Accrued Liabilities, Fair Value Disclosure	[2]	11,474,578	10,042,541
Time certificates of deposits (f)
LIABILITIES
Time certificates of deposits (f)	[1]	785,562	950,629
Accrued Liabilities, Fair Value Disclosure	[1]	786,514	955,598
Federal Home Loan Bank borrowings (f)
LIABILITIES
Federal Home Loan Bank borrowings (f)	[1]	25,675	35,740
Federal Home Loan Bank Borrowings, Fair Value Disclosure	[1]	25,679	35,885
Junior subordinated debentures (g)
LIABILITIES
Junior Subordinated Debenture Owed to Unconsolidated Subsidiary Trust	[3]	62,853	62,851
Accrued Liabilities, Fair Value Disclosure	[3]	68,098	70,238
Subordinated debentures (f)
LIABILITIES
Subordinated Debt	[1]	49,767	49,696
Accrued Liabilities, Fair Value Disclosure	[1]	46,403	46,486
Quoted Prices in Active Markets for Identical Assets (Level 1) | Long-term Debt [Member]
LIABILITIES
Long-term Debt, Fair Value	[1]	0	0
Significant Other Observable Inputs (Level 2) | Deposits [Member]
LIABILITIES
Accrued Liabilities, Fair Value Disclosure	[2]	11,474,578	10,042,541
Significant Other Observable Inputs (Level 2) | Time certificates of deposits (f)
LIABILITIES
Accrued Liabilities, Fair Value Disclosure	[1]	786,514	955,598
Significant Other Observable Inputs (Level 2) | Federal Home Loan Bank borrowings (f)
LIABILITIES
Federal Home Loan Bank Borrowings, Fair Value Disclosure	[1]	25,679	35,885
Significant Other Observable Inputs (Level 2) | Long-term Debt [Member]
LIABILITIES
Long-term Debt, Fair Value	[1]	18,571	32,033
Significant Other Observable Inputs (Level 2) | Junior subordinated debentures (g)
LIABILITIES
Accrued Liabilities, Fair Value Disclosure	[3]	68,098	70,238
Significant Unobservable Inputs (Level 3) | Long-term Debt [Member]
LIABILITIES
Long-term Debt, Fair Value	[1]	0	0
Significant Unobservable Inputs (Level 3) | Subordinated debentures (f)
LIABILITIES
Accrued Liabilities, Fair Value Disclosure	[1]	46,403	46,486
U.S. Government agency securities
ASSETS
Debt Securities, Held-to-maturity		33,422
Held to Maturity, Fair Value, Total		33,295
U.S. Government agency securities | Significant Other Observable Inputs (Level 2)
ASSETS
Held to Maturity, Fair Value, Total		33,295
U.S. treasury securities
ASSETS
Debt Securities, Held-to-maturity	[4]	3,007	4,017
Held to Maturity, Fair Value, Total	[4]	3,024	4,077
U.S. treasury securities | Significant Other Observable Inputs (Level 2)
ASSETS
Held to Maturity, Fair Value, Total	[4]	3,024	4,077
Agency mortgage-backed securities
ASSETS
Debt Securities, Held-to-maturity	[4]	352,483	356,085
Held to Maturity, Fair Value, Total	[4]	360,613	374,121
Agency mortgage-backed securities | Significant Other Observable Inputs (Level 2)
ASSETS
Held to Maturity, Fair Value, Total	[4]	360,613	374,121
Agency collateralized mortgage obligations
ASSETS
Debt Securities, Held-to-maturity	[4]	451,151	335,993
Held to Maturity, Fair Value, Total	[4]	452,038	344,119
Agency collateralized mortgage obligations | Significant Other Observable Inputs (Level 2)
ASSETS
Held to Maturity, Fair Value, Total	[4]	452,038	344,119
Single issuer trust preferred securities issued by banks
ASSETS
Debt Securities, Held-to-maturity	[4]	1,500	1,500
Held to Maturity, Fair Value, Total	[4]	1,508	1,498
Single issuer trust preferred securities issued by banks | Significant Other Observable Inputs (Level 2)
ASSETS
Held to Maturity, Fair Value, Total	[4]	1,508	1,498
Small Business Administration Pooled Securities [Member]
ASSETS
Debt Securities, Held-to-maturity	[4]	23,686	26,917
Held to Maturity, Fair Value, Total	[4]	24,828	28,362
Small Business Administration Pooled Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1)
ASSETS
Held to Maturity, Fair Value, Total	[4]	0	0
Small Business Administration Pooled Securities [Member] | Significant Other Observable Inputs (Level 2)
ASSETS
Held to Maturity, Fair Value, Total	[4]	24,828	28,362
Small Business Administration Pooled Securities [Member] | Significant Unobservable Inputs (Level 3)
ASSETS
Held to Maturity, Fair Value, Total	[4]	0	0
Loans, net of allowance for credit losses (b)
ASSETS
Loans, net of allowance for credit losses (b)	[5]	8,680,968	9,247,964
Loans Receivable, Fair Value Disclosure	[5]	8,663,615	9,253,381
Loans, net of allowance for credit losses (b) | Significant Unobservable Inputs (Level 3)
ASSETS
Loans Receivable, Fair Value Disclosure	[5]	8,663,615	9,253,381
Investment in Federal Home Loan Bank Stock [Member]
ASSETS
Federal Home Loan Bank Stock	[6]	8,666	10,250
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure	[6]	8,666	10,250
Investment in Federal Home Loan Bank Stock [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1)
ASSETS
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure	[6]	0	0
Investment in Federal Home Loan Bank Stock [Member] | Significant Other Observable Inputs (Level 2)
ASSETS
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure	[6]	8,666	10,250
Investment in Federal Home Loan Bank Stock [Member] | Significant Unobservable Inputs (Level 3)
ASSETS
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure	[6]	0	0
Cash Surrender Value [Member]
ASSETS
Cash Surrender Value, Fair Value Disclosure	[7]	244,573	200,525
Bank Owned Life Insurance	[7]	244,573	200,525
Cash Surrender Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1)
ASSETS
Cash Surrender Value, Fair Value Disclosure	[7]	0	0
Cash Surrender Value [Member] | Significant Other Observable Inputs (Level 2)
ASSETS
Cash Surrender Value, Fair Value Disclosure	[7]	244,573	200,525
Cash Surrender Value [Member] | Significant Unobservable Inputs (Level 3)
ASSETS
Cash Surrender Value, Fair Value Disclosure	[7]	$ 0	$ 0

[1] Fair value was determined by discounting anticipated future cash payments using rates currently available for instruments with similar remaining maturities.

[2] Fair value of demand deposits, savings and interest checking accounts and money market deposits is the amount payable on demand at the reporting date.

[3] Fair value was determined based upon market prices of securities with similar terms and maturities.

[4] The fair values presented are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments and/or discounted cash flow analysis.

[5] Fair value of loans is measured using the exit price valuation method, determined primarily by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities or cash flows, while incorporating liquidity and credit assumptions. Additionally, this amount excludes individually assessed collateral dependent loans, which are deemed to be marked to fair value on a nonrecurring basis.

[6] Federal Home Loan Bank stock has no quoted market value and is carried at cost; therefore the carrying amount approximates fair value.

[7] Cash surrender value of life insurance policies is recorded at its cash surrender value (or the amount that can be realized upon surrender of the policy), therefore, carrying amount approximates fair value.

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Revenue Recognition Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Other noninterest income - ASC 606	$ 1,362	$ 905	$ 3,732	$ 2,651
Total noninterest income in scope of ASC 606	18,573	15,183	52,137	49,661
Total noninterest income out of scope of ASC 606	7,884	14,164	24,533	34,311
Noninterest Income	26,457	29,347	76,670	83,972
Deposit Account [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	4,298	3,428	11,704	11,227
Credit Card, Merchant Discount [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	2,223	2,025	6,267	10,665
ATM Charge [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	817	708	2,177	1,872
Investment Advisory, Management and Administrative Service [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	8,147	6,997	23,576	20,113
Investment Advisory, Retail Investment and Insurance Service [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	1,027	574	2,774	1,583
Merchant Processing [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	365	330	1,024	1,000
Credit Card Income [Member]
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 334	$ 216	$ 883	$ 550

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Revenue Recognition Contract with Customer, Asset (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Investment Management Income Receivable	$ 5,292	$ 4,636

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Comprehensive Income/Loss (Comprehensive Income/(Loss) Presented Net of Taxes) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Equity [Abstract]
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, before Tax		$ (4,707)	$ (3,798)	$ (16,083)	$ 28,457
Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), after Adjustments, Tax		1,324	1,069	4,524	(8,005)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax		(3,383)	(2,729)	(11,559)	20,452
COMPREHENSIVE INCOME
Change in fair value of securities available for sale, pre tax amount		(10,337)	(857)	(15,589)	13,598
Change in fair value of securities available for sale, tax (expense) benefit		2,440	148	3,711	(3,265)
Change in fair value of securities available for sale, after tax amount		(7,897)	(709)	(11,878)	10,333
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax		0	0	0	0
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax		0	0	0	0
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax		0	0	0	0
Change in fair value of securities available for sale, pre tax amount		(10,337)	(857)	(15,589)	13,598
Change in fair value of securities available for sale, tax (expense) benefit		2,440	148	3,711	(3,265)
Change in fair value of securities available for sale, after tax amount		(7,897)	(709)	(11,878)	10,333
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax		84	(143)	(2,214)	37,674
Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), before Adjustments, Tax		(23)	41	624	(10,597)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax		61	(102)	(1,590)	27,077
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax		4,791	4,339	13,869	9,901
Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), Adjustments, Tax		(1,347)	(1,220)	(3,900)	(2,784)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax		3,444	3,119	9,969	7,117
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Loss on Termination of Derivatives, before Tax		0	(684)	0	(684)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Loss on Termination of Derviatives, Tax			192		192
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Loss on Termination of Derivatives, After Tax			(492)		(492)
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, before Tax		0	(2)	653	(1,392)
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, Tax		0	1	(184)	392
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax		0	(1)	469	(1,000)
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax		346	245	1,037	736
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax		(97)	(69)	(291)	(207)
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax		249	176	746	529
Amortization of certain costs included in net periodic retirement costs, pre tax amount		44	69	131	207
Amortization of certain costs included in net periodic retirement costs, tax (expense) benefit		(13)	(19)	(37)	(58)
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, after Tax		31	50	94	149
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax	[1]	390	312	1,821	(449)
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax	[1]	(110)	(87)	(512)	127
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax	[1]	280	225	1,309	(322)
Total other comprehensive income, pre tax amount		(14,654)	(4,343)	(29,851)	41,606
Total other comprehensive income, tax (expense) benefit		3,654	1,130	7,723	(11,143)
Total other comprehensive income, after tax amount		(11,000)	(3,213)	(22,128)	30,463
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Loss on Termination of Derivatives, before Tax		$ 0	$ (684)	$ 0	$ (684)

[1] The following tables present a reconciliation of the changes in the components of other comprehensive income (loss) for the periods indicated, including the amount of income tax (expense) benefit allocated to each component of other comprehensive income (loss): Three Months Ended
September 30, 2021Nine Months Ended
September 30, 2021Pre Tax
AmountTax (Expense)
BenefitAfter Tax
AmountPre Tax
AmountTax (Expense)
BenefitAfter Tax
Amount (Dollars in thousands)Change in fair value of securities available for sale$(10,337)$2,440 $(7,897)$(15,589)$3,711 $(11,878)Less: net security losses reclassified into other noninterest expense— — — — — — Net change in fair value of securities available for sale(10,337)2,440 (7,897)(15,589)3,711 (11,878)Change in fair value of cash flow hedges84 (23)61 (2,214)624 (1,590)Less: net cash flow hedge gains reclassified into interest income or interest expense 4,791 (1,347)3,444 13,869 (3,900)9,969 Net change in fair value of cash flow hedges(4,707)1,324 (3,383)(16,083)4,524 (11,559)Net unamortized gain related to defined benefit pension and other postretirement adjustments arising during the period— — — 653 (184)469 Amortization of net actuarial losses346 (97)249 1,037 (291)746 Amortization of net prior service costs44 (13)31 131 (37)94 Net change in other comprehensive income for defined benefit postretirement plans (1)390 (110)280 1,821 (512)1,309 Total other comprehensive loss$(14,654)$3,654 $(11,000)$(29,851)$7,723 $(22,128)  Three Months Ended
September 30, 2020Nine Months Ended
September 30, 2020 Pre Tax
AmountTax (Expense)
BenefitAfter Tax
AmountPre Tax
AmountTax (Expense)
BenefitAfter Tax
Amount (Dollars in thousands)Change in fair value of securities available for sale$(857)$148 $(709)$13,598 $(3,265)$10,333 Less: net security losses reclassified into other noninterest expense— — — — — — Net change in fair value of securities available for sale(857)148 (709)13,598 (3,265)10,333 Change in fair value of cash flow hedges(143)41 (102)37,674 (10,597)27,077 Less: net cash flow hedge gains reclassified into interest income or interest expense 4,339 (1,220)3,119 9,901 (2,784)7,117 Less: loss on termination of hedge reclassified into noninterest expense(684)192 (492)(684)192 (492)Net change in fair value of cash flow hedges(3,798)1,069 (2,729)28,457 (8,005)20,452 Net unamortized loss related to defined benefit pension and other postretirement adjustments arising during the period(2)1 (1)(1,392)392 (1,000)Amortization of net actuarial losses245 (69)176 736 (207)529 Amortization of net prior service costs69 (19)50 207 (58)149 Net change in other comprehensive income for defined benefit postretirement plans (1)312 (87)225 (449)127 (322)Total other comprehensive income (loss)$(4,343)$1,130 $(3,213)$41,606 $(11,143)$30,463 
(1)The amortization of prior service costs is included in the computation of net periodic pension cost as disclosed in Note 15 "Employee Benefit Plans" within the Notes to the Consolidated Financial Statements included in Item 8 of the Company's 2020 Form 10-K.

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Comprehensive Income/Loss (Comprised of the following Components) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			$ 40,695	$ 18,169
Net change in other comprehensive income (loss)	$ (11,000)	$ (3,213)	(22,128)	30,463
Ending Balance	18,567	48,632	18,567	48,632
Unrealized Gain (Loss) on Securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			13,255	4,398
Net change in other comprehensive income (loss)			(11,878)	10,333
Ending Balance	1,377	14,731	1,377	14,731
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			33,276	16,479
Net change in other comprehensive income (loss)			(11,559)	20,452
Ending Balance	21,717	36,931	21,717	36,931
Defined Benefit Postretirement Plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance			(5,836)	(2,708)
Net change in other comprehensive income (loss)			1,309	(322)
Ending Balance	(4,527)	(3,030)	(4,527)	(3,030)
AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net change in other comprehensive income (loss)	$ (11,000)	$ (3,213)	$ (22,128)	$ 30,463

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Commitments and contingencies Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Commitments to Extend Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability	$ 3,591,456	$ 3,301,692
Standby Letters of Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability	20,081	20,686
Deferred standby letter of credit fees [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability	146	164
Obligation to Repurchase Receivables Sold [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Liability	$ 208,833	$ 303,265

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Commitments and contingencies Textual (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Sep. 30, 2021
Gain (Loss) on Termination of Lease	$ 4,800
Cash Reserve Deposit Required and Made		$ 0
Minimum [Member]
Lessee, Operating Lease, Renewal Term		3 years
Maximum [Member]
Lessee, Operating Lease, Renewal Term		10 years

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Subsequent Events (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Subsequent Event [Line Items]
Financing Recievable, Commercial and Industrial	$ 15,800		$ 15,800
Gain (Loss) on Sales of Loans, Net	$ 4,900	$ 10,000	17,200	$ 20,700
Commercial And Industrial [Member]
Subsequent Event [Line Items]
Gain (Loss) on Sales of Loans, Net			$ 2,500