XML 71 R31.htm IDEA: XBRL DOCUMENT v3.19.3
Allowance for Loan Losses and Credit Quality of Loans (Tables)
 9 Months Ended
Sep. 30, 2019
Allowance for Loan Losses and Credit Quality of Loans [Abstract]  
Portfolio and Class Segments
Portfolio
Class
Commercial Loans
Commercial and Industrial
 
Commercial Real Estate
 
Business Banking
Consumer Loans
Dealer Finance
 
Specialty Lending
 
Direct
Residential Real Estate
  

Allowance for Loan Losses by Portfolio The following tables illustrate the changes in the allowance for loan losses by our portfolio segments:

(In thousands)
  
Commercial
Loans
    
Consumer
Loans
    
Residential
Real Estate
    
Total
  
Balance as of June 30, 2019
  
$
33,152
    
$
36,534
    
$
2,479
    
$
72,165
  
Charge-offs
    
(865
)
    
(6,976
)
    
(174
)
    
(8,015
)
Recoveries
    
132
      
1,746
      
13
      
1,891
  
Provision
    
1,021
      
5,031
      
272
      
6,324
  
Ending Balance as of September 30, 2019
  
$
33,440
    
$
36,335
    
$
2,590
    
$
72,365
  
                                 
Balance as of June 30, 2018
  
$
31,059
    
$
36,479
    
$
4,912
    
$
72,450
  
Charge-offs
    
(823
)
    
(6,818
)
    
(123
)
    
(7,764
)
Recoveries
    
410
      
1,602
      
81
      
2,093
  
Provision
    
1,086
      
6,044
      
(1,104
)
    
6,026
  
Ending Balance as of September 30, 2018
  
$
31,732
    
$
37,307
    
$
3,766
    
$
72,805
  

(In thousands)
  
Commercial
Loans
    
Consumer
Loans
    
Residential
Real Estate
    
Total
  
Balance as of December 31, 2018
  
$
32,759
    
$
37,178
    
$
2,568
    
$
72,505
  
Charge-offs
    
(2,783
)
    
(21,336
)
    
(782
)
    
(24,901
)
Recoveries
    
344
      
4,887
      
122
      
5,353
  
Provision
    
3,120
      
15,606
      
682
      
19,408
  
Ending Balance as of September 30, 2019
  
$
33,440
    
$
36,335
    
$
2,590
    
$
72,365
  
                                 
Balance as of December 31, 2017
  
$
27,606
    
$
36,830
    
$
5,064
    
$
69,500
  
Charge-offs
    
(2,535
)
    
(21,947
)
    
(513
)
    
(24,995
)
Recoveries
    
780
      
4,946
      
274
      
6,000
  
Provision
    
5,881
      
17,478
      
(1,059
)
    
22,300
  
Ending Balance as of September 30, 2018
  
$
31,732
    
$
37,307
    
$
3,766
    
$
72,805
  

The following tables illustrate the allowance for loan losses and the recorded investment by portfolio segments:


(In thousands)
  
Commercial
Loans
    
Consumer
Loans
    
Residential
Real Estate
    
Total
  
As of September 30, 2019
                        
Allowance for loan losses
  
$
33,440
    
$
36,335
    
$
2,590
    
$
72,365
  
Allowance for loans individually evaluated for impairment
    
-
      
-
      
-
      
-
  
Allowance for loans collectively evaluated for impairment
  
$
33,440
    
$
36,335
    
$
2,590
    
$
72,365
  
Ending balance of loans
  
$
3,351,201
    
$
2,245,688
    
$
1,416,920
    
$
7,013,809
  
Ending balance of originated loans individually evaluated for impairment
    
3,117
      
7,267
      
7,673
      
18,057
  
Ending balance of acquired loans collectively evaluated for impairment
    
132,811
      
25,421
      
131,457
      
289,689
  
Ending balance of originated loans collectively evaluated for impairment
  
$
3,215,273
    
$
2,213,000
    
$
1,277,790
    
$
6,706,063
  
                                 
As of December 31, 2018
                                
Allowance for loan losses
  
$
32,759
    
$
37,178
    
$
2,568
    
$
72,505
  
Allowance for loans individually evaluated for impairment
    
25
      
-
      
-
      
25
  
Allowance for loans collectively evaluated for impairment
  
$
32,734
    
$
37,178
    
$
2,568
    
$
72,480
  
Ending balance of loans
  
$
3,222,310
    
$
2,284,563
    
$
1,380,836
    
$
6,887,709
  
Ending balance of originated loans individually evaluated for impairment
    
5,786
      
7,887
      
6,905
      
20,578
  
Ending balance of acquired loans collectively evaluated for impairment
    
143,690
      
31,624
      
147,277
      
322,591
  
Ending balance of originated loans collectively evaluated for impairment
  
$
3,072,834
    
$
2,245,052
    
$
1,226,654
    
$
6,544,540
  

Past due and Nonperforming Loans by Loan Class The following tables set forth information with regard to past due and nonperforming loans by loan class:

(In thousands)
  
31-60 Days
Past Due
Accruing
    
61-90 Days
Past Due
Accruing
    
Greater
Than 90
Days Past
Due
Accruing
    
Total Past
Due
Accruing
    
Nonaccrual
    
Current
    
Recorded
Total
Loans
  
As of September 30, 2019
                                          
Originated
                                          
Commercial Loans:
                                          
C&I
  
$
505
    
$
-
    
$
-
    
$
505
    
$
729
    
$
836,593
    
$
837,827
  
CRE
    
3,646
      
-
      
4,839
      
8,485
      
4,664
      
1,832,708
      
1,845,857
  
Business Banking
    
2,118
      
313
      
67
      
2,498
      
6,524
      
525,684
      
534,706
  
Total Commercial Loans
  
$
6,269
    
$
313
    
$
4,906
    
$
11,488
    
$
11,917
    
$
3,194,985
    
$
3,218,390
  
Consumer Loans:
                                                        
Dealer Finance
  
$
11,167
    
$
1,965
    
$
1,094
    
$
14,226
    
$
2,241
    
$
1,179,316
    
$
1,195,783
  
Specialty Lending
    
3,681
      
1,655
      
1,568
      
6,904
      
-
      
521,601
      
528,505
  
Direct
    
1,778
      
1,090
      
208
      
3,076
      
2,553
      
490,350
      
495,979
  
Total Consumer Loans
  
$
16,626
    
$
4,710
    
$
2,870
    
$
24,206
    
$
4,794
    
$
2,191,267
    
$
2,220,267
  
Residential Real Estate
  
$
1,582
    
$
100
    
$
500
    
$
2,182
    
$
6,311
    
$
1,276,970
    
$
1,285,463
  
Total Originated Loans
  
$
24,477
    
$
5,123
    
$
8,276
    
$
37,876
    
$
23,022
    
$
6,663,222
    
$
6,724,120
  
                                                         
Acquired
                                                        
Commercial Loans:
                                                        
C&I
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
28,823
    
$
28,823
  
CRE
    
-
      
-
      
-
      
-
      
-
      
67,853
      
67,853
  
Business Banking
    
445
      
-
      
-
      
445
      
366
      
35,324
      
36,135
  
Total Commercial Loans
  
$
445
    
$
-
    
$
-
    
$
445
    
$
366
    
$
132,000
    
$
132,811
  
Consumer Loans:
                                                        
Direct
  
$
276
    
$
43
    
$
-
    
$
319
    
$
131
    
$
24,971
    
$
25,421
  
Total Consumer Loans
  
$
276
    
$
43
    
$
-
    
$
319
    
$
131
    
$
24,971
    
$
25,421
  
Residential Real Estate
  
$
1,102
    
$
-
    
$
66
    
$
1,168
    
$
1,104
    
$
129,185
    
$
131,457
  
Total Acquired Loans
  
$
1,823
    
$
43
    
$
66
    
$
1,932
    
$
1,601
    
$
286,156
    
$
289,689
  
                                                         
Total Loans
  
$
26,300
    
$
5,166
    
$
8,342
    
$
39,808
    
$
24,623
    
$
6,949,378
    
$
7,013,809
  

(In thousands)
  
31-60 Days
Past Due
Accruing
    
61-90 Days
Past Due
Accruing
    
Greater
Than 90
Days Past
Due
Accruing
    
Total Past
Due
Accruing
    
Nonaccrual
    
Current
    
Recorded
Total
Loans
  
As of December 31, 2018
                                          
Originated
                                          
Commercial Loans:
                                          
C&I
  
$
909
    
$
-
    
$
-
    
$
909
    
$
1,062
    
$
846,148
    
$
848,119
  
CRE
    
1,089
      
-
      
588
      
1,677
      
4,995
      
1,734,558
      
1,741,230
  
Business Banking
    
1,092
      
302
      
-
      
1,394
      
5,974
      
481,903
      
489,271
  
Total Commercial Loans
  
$
3,090
    
$
302
    
$
588
    
$
3,980
    
$
12,031
    
$
3,062,609
    
$
3,078,620
  
Consumer Loans:
                                                        
Dealer Finance
  
$
14,519
    
$
2,300
    
$
1,186
    
$
18,005
    
$
1,971
    
$
1,196,136
    
$
1,216,112
  
Specialty Lending
    
3,479
      
1,773
      
1,562
      
6,814
      
-
      
518,114
      
524,928
  
Direct
    
2,962
      
1,437
      
552
      
4,951
      
2,592
      
504,356
      
511,899
  
Total Consumer Loans
  
$
20,960
    
$
5,510
    
$
3,300
    
$
29,770
    
$
4,563
    
$
2,218,606
    
$
2,252,939
  
Residential Real Estate
  
$
1,426
    
$
157
    
$
1,182
    
$
2,765
    
$
6,778
    
$
1,224,016
    
$
1,233,559
  
Total Originated Loans
  
$
25,476
    
$
5,969
    
$
5,070
    
$
36,515
    
$
23,372
    
$
6,505,231
    
$
6,565,118
  
                                                         
Acquired
                                                        
Commercial Loans:
                                                        
C&I
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
26,124
    
$
26,124
  
CRE
    
-
      
-
      
-
      
-
      
-
      
84,492
      
84,492
  
Business Banking
    
466
      
288
      
-
      
754
      
390
      
31,930
      
33,074
  
Total Commercial Loans
  
$
466
    
$
288
    
$
-
    
$
754
    
$
390
    
$
142,546
    
$
143,690
  
Consumer Loans:
                                                        
Dealer Finance
  
$
1
    
$
1
    
$
-
    
$
2
    
$
-
    
$
30
    
$
32
  
Direct
    
152
      
41
      
15
      
208
      
227
      
31,157
      
31,592
  
Total Consumer Loans
  
$
153
    
$
42
    
$
15
    
$
210
    
$
227
    
$
31,187
    
$
31,624
  
Residential Real Estate
  
$
546
    
$
42
    
$
-
    
$
588
    
$
1,498
    
$
145,191
    
$
147,277
  
Total Acquired Loans
  
$
1,165
    
$
372
    
$
15
    
$
1,552
    
$
2,115
    
$
318,924
    
$
322,591
  
                                                         
Total Loans
  
$
26,641
    
$
6,341
    
$
5,085
    
$
38,067
    
$
25,487
    
$
6,824,155
    
$
6,887,709
  

Impaired Loans and Specific Reserve Allocations The following table provides information on loans specifically evaluated for impairment:


 
September 30, 2019
    
December 31, 2018
  
(In thousands)
  
Recorded
Investment
Balance
(Book)
    
Unpaid
Principal
Balance
(Legal)
    
Related
Allowance
    
Recorded
Investment
Balance
(Book)
    
Unpaid
Principal
Balance
(Legal)
    
Related
Allowance
  
Originated
                                    
With no related allowance recorded:
                                    
Commercial Loans:
                                    
C&I
  
$
78
    
$
304
    
$
      
$
228
    
$
497
    
$
    
CRE
    
2,046
      
2,046
              
4,312
      
6,330
          
Business Banking
    
993
      
1,412
              
1,013
      
2,001
          
Total Commercial Loans
  
$
3,117
    
$
3,762
            
$
5,553
    
$
8,828
          
Consumer Loans:
                                                
Dealer Finance
  
$
194
    
$
279
            
$
143
    
$
241
          
Direct
    
7,073
      
8,464
              
7,744
      
9,831
          
Total Consumer Loans
  
$
7,267
    
$
8,743
            
$
7,887
    
$
10,072
          
Residential Real Estate
  
$
7,673
    
$
9,620
            
$
6,905
    
$
9,414
          
Total
  
$
18,057
    
$
22,125
            
$
20,345
    
$
28,314
          
                                                 
With an allowance recorded:
                                                
Commercial Loans:
                                                
C&I
  
$
-
    
$
-
    
$
-
    
$
233
    
$
238
    
$
25
  
Total Commercial Loans
  
$
-
    
$
-
    
$
-
    
$
233
    
$
238
    
$
25
  
                                                 
Total Loans
  
$
18,057
    
$
22,125
    
$
-
    
$
20,578
    
$
28,552
    
$
25
  

The following tables summarize the average recorded investments on loans specifically evaluated for impairment and the interest income recognized:


 
For the Three Months Ended
  
   
September 30, 2019
    
September 30, 2018
  
(In thousands)
  
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Average
Recorded
Investment
    
Interest
Income
Recognized
  
Originated
                        
Commercial Loans:
                        
C&I
  
$
115
    
$
-
    
$
433
    
$
-
  
CRE
    
2,554
      
30
      
3,645
      
32
  
Business Banking
    
1,002
      
7
      
1,024
      
4
  
Total Commercial Loans
  
$
3,671
    
$
37
    
$
5,102
    
$
36
  
Consumer Loans:
                                
Dealer Finance
  
$
213
    
$
3
    
$
177
    
$
4
  
Direct
    
7,293
      
95
      
7,730
      
102
  
Total Consumer Loans
  
$
7,506
    
$
98
    
$
7,907
    
$
106
  
Residential Real Estate
  
$
7,629
    
$
93
    
$
6,519
    
$
68
  
Total Originated
  
$
18,806
    
$
228
    
$
19,528
    
$
210
  
                                 
Total Loans
  
$
18,806
    
$
228
    
$
19,528
    
$
210
  


 
For the Nine Months Ended
  
   
September 30, 2019
    
September 30, 2018
  
(In thousands)
  
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Average
Recorded
Investment
    
Interest
Income
Recognized
  
Originated
                        
Commercial Loans:
                        
C&I
  
$
291
    
$
1
    
$
449
    
$
1
  
CRE
    
3,577
      
91
      
3,999
      
96
  
Business Banking
    
1,111
      
18
      
998
      
12
  
Total Commercial Loans
  
$
4,979
    
$
110
    
$
5,446
    
$
109
  
Consumer Loans:
                                
Dealer Finance
  
$
201
    
$
9
    
$
187
    
$
8
  
Direct
    
7,518
      
291
      
7,953
      
317
  
Total Consumer Loans
  
$
7,719
    
$
300
    
$
8,140
    
$
325
  
Residential Real Estate
  
$
7,428
    
$
252
    
$
6,719
    
$
212
  
Total Originated
  
$
20,126
    
$
662
    
$
20,305
    
$
646
  
                                 
Total Loans
  
$
20,126
    
$
662
    
$
20,305
    
$
646
  

Financing Receivable Credit Quality by Loan Class The following tables illustrate the Company’s credit quality by loan class:

(In thousands)
  
As of September 30, 2019
  
Originated
                  
Commercial Credit Exposure
By Internally Assigned Grade:
  
C&I
    
CRE
    
Total
  
Pass
  
$
771,776
    
$
1,762,016
    
$
2,533,792
  
Special Mention
    
32,992
      
39,368
      
72,360
  
Substandard
    
33,059
      
44,473
      
77,532
  
Total
  
$
837,827
    
$
1,845,857
    
$
2,683,684
  

Business Banking Credit Exposure
By Internally Assigned Grade:
  
Business
Banking
    
Total
  
Non-classified
  
$
520,830
    
$
520,830
  
Classified
    
13,876
      
13,876
  
Total
  
$
534,706
    
$
534,706
  

Consumer Credit Exposure
By Payment Activity:
  
Dealer
Finance
    
Specialty
Lending
    
Direct
    
Total
  
Performing
  
$
1,192,448
    
$
526,937
    
$
493,218
    
$
2,212,603
  
Nonperforming
    
3,335
      
1,568
      
2,761
      
7,664
  
Total
  
$
1,195,783
    
$
528,505
    
$
495,979
    
$
2,220,267
  

Residential Real Estate Credit Exposure
By Payment Activity:
  
Residential
Real Estate
    
Total
  
Performing
  
$
1,278,652
    
$
1,278,652
  
Nonperforming
    
6,811
      
6,811
  
Total
  
$
1,285,463
    
$
1,285,463
  

Acquired
                  
Commercial Credit Exposure
                  
By Internally Assigned Grade:
  
C&I
    
CRE
    
Total
  
Pass
  
$
21,781
    
$
67,441
    
$
89,222
  
Special Mention
    
2,860
      
-
      
2,860
  
Substandard
    
4,182
      
412
      
4,594
  
Total
  
$
28,823
    
$
67,853
    
$
96,676
  

Business Banking Credit Exposure
By Internally Assigned Grade:
  
Business
Banking
    
Total
  
Non-classified
  
$
33,499
    
$
33,499
  
Classified
    
2,636
      
2,636
  
Total
  
$
36,135
    
$
36,135
  

Consumer Credit Exposure
            
By Payment Activity:
  
Direct
    
Total
  
Performing
  
$
25,290
    
$
25,290
  
Nonperforming
    
131
      
131
  
Total
  
$
25,421
    
$
25,421
  

Residential Real Estate Credit Exposure
By Payment Activity:
  
Residential
Real Estate
    
Total
  
Performing
  
$
130,287
    
$
130,287
  
Nonperforming
    
1,170
      
1,170
  
Total
  
$
131,457
      
131,457
  


(In thousands)
  
As of December 31, 2018
  
Originated
                  
Commercial Credit Exposure
                  
By Internally Assigned Grade:
  
C&I
    
CRE
    
Total
  
Pass
  
$
796,778
    
$
1,681,330
    
$
2,478,108
  
Special Mention
    
11,348
      
13,894
      
25,242
  
Substandard
    
39,993
      
46,006
      
85,999
  
Total
  
$
848,119
    
$
1,741,230
    
$
2,589,349
  

Business Banking Credit Exposure
By Internally Assigned Grade:
  
Business
Banking
    
Total
  
Non-classified
  
$
476,052
    
$
476,052
  
Classified
    
13,219
      
13,219
  
Total
  
$
489,271
    
$
489,271
  

Consumer Credit Exposure
By Payment Activity:
  
Dealer
Finance
    
Specialty
Lending
    
Direct
    
Total
  
Performing
  
$
1,212,955
    
$
523,366
    
$
508,755
    
$
2,245,076
  
Nonperforming
    
3,157
      
1,562
      
3,144
      
7,863
  
Total
  
$
1,216,112
    
$
524,928
    
$
511,899
    
$
2,252,939
  

Residential Real Estate Credit Exposure
By Payment Activity:
  
Residential
Real Estate
    
Total
  
Performing
  
$
1,225,599
    
$
1,225,599
  
Nonperforming
    
7,960
      
7,960
  
Total
  
$
1,233,559
    
$
1,233,559
  

Acquired
                  
Commercial Credit Exposure
                  
By Internally Assigned Grade:
  
C&I
    
CRE
    
Total
  
Pass
  
$
23,283
    
$
83,762
    
$
107,045
  
Special Mention
    
2,831
      
92
      
2,923
  
Substandard
    
10
      
638
      
648
  
Total
  
$
26,124
    
$
84,492
    
$
110,616
  

Business Banking Credit Exposure
By Internally Assigned Grade:
  
Business
Banking
    
Total
  
Non-classified
  
$
29,945
    
$
29,945
  
Classified
    
3,129
      
3,129
  
Total
  
$
33,074
    
$
33,074
  

Consumer Credit Exposure
By Payment Activity:
  
Dealer
Finance
    
Direct
    
Total
  
Performing
  
$
32
    
$
31,350
    
$
31,382
  
Nonperforming
    
-
      
242
      
242
  
Total
  
$
32
    
$
31,592
    
$
31,624
  

Residential Real Estate Credit Exposure
By Payment Activity:
  
Residential
Real Estate
    
Total
  
Performing
  
$
145,779
    
$
145,779
  
Nonperforming
    
1,498
      
1,498
  
Total
  
$
147,277
    
$
147,277
  

Troubled Debt Restructurings on Financing Receivables The following tables illustrate the recorded investment and number of modifications for modified loans, including the recorded investment in the loans prior to a modification and the recorded investment in the loans after restructuring:


 
Three Months Ended
September 30, 2019
    
Three Months Ended
September 30, 2018
  
(Dollars in thousands)
  
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
  
Consumer Loans:
                                    
Dealer Finance
    
-
    
$
-
    
$
-
      
8
    
$
90
    
$
89
  
Direct
    
1
      
30
      
37
      
-
      
-
      
-
  
Total Consumer Loans
    
1
    
$
30
    
$
37
      
8
    
$
90
    
$
89
  
Residential Real Estate
    
2
    
$
186
    
$
203
      
-
    
$
-
    
$
-
  
Total Troubled Debt Restructurings
    
3
    
$
216
    
$
240
      
8
    
$
90
    
$
89
  


 
Nine Months Ended
September 30, 2019
    
Nine Months Ended
September 30, 2018
  
(Dollars in thousands)
  
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
  
Commercial Loans:
                                    
C&I
    
1
    
$
65
    
$
65
      
-
    
$
-
    
$
-
  
Business Banking
    
2
      
388
      
388
      
3
      
369
      
371
  
Total Commercial Loans
    
3
    
$
453
    
$
453
      
3
    
$
369
    
$
371
  
Consumer Loans:
                                                
Dealer Finance
    
9
    
$
134
    
$
134
      
15
    
$
185
    
$
183
  
Direct
    
9
      
418
      
434
      
2
      
41
      
41
  
Total Consumer Loans
    
18
    
$
552
    
$
568
      
17
    
$
226
    
$
224
  
Residential Real Estate
    
10
    
$
942
    
$
990
      
5
    
$
323
    
$
323
  
Total Troubled Debt Restructurings
    
31
    
$
1,947
    
$
2,011
      
25
    
$
918
    
$
918
  

The following tables illustrate the recorded investment and number of modifications for TDRs where a concession has been made and subsequently defaulted during the period:


  
Three Months Ended
September 30, 2019
    
Three Months Ended
September 30, 2018
  
(Dollars in thousands)
  
Number of
Contracts
    
Recorded
Investment
    
Number of
Contracts
    
Recorded
Investment
  
Consumer Loans:
                        
Dealer Finance
    
1
    
$
10
      
-
    
$
-
  
Direct
    
9
      
332
      
17
      
816
  
Total Consumer Loans
    
10
    
$
342
      
17
    
$
816
  
Residential Real Estate
    
9
    
$
572
      
5
    
$
398
  
Total Troubled Debt Restructurings
    
19
    
$
914
      
22
    
$
1,214
  


 
Nine Months Ended
September 30, 2019
    
Nine Months Ended
September 30, 2018
  
(Dollars in thousands)
  
Number of
Contracts
    
Recorded
Investment
    
Number of
Contracts
    
Recorded
Investment
  
Commercial Loans:
                        
Business Banking
    
-
    
$
-
      
2
    
$
258
  
Total Commercial Loans
    
-
    
$
-
      
2
    
$
258
  
Consumer Loans:
                                
Dealer Finance
    
2
    
$
17
      
-
    
$
-
  
Direct
    
24
      
1,109
      
35
      
1,740
  
Total Consumer Loans
    
26
    
$
1,126
      
35
    
$
1,740
  
Residential Real Estate
    
19
    
$
1,087
      
17
    
$
1,239
  
Total Troubled Debt Restructurings
    
45
    
$
2,213
      
54
    
$
3,237