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

9 Months Ended

Sep. 30, 2021

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

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


	Three Months Ended 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