Loan Portfolio and Credit Quality (Tables)

6 Months Ended

Jun. 30, 2019

Loans and Leases Receivable Disclosure [Abstract]

Schedule of accounts, notes, loans and financing receivable

The following table presents a summary of the loan portfolio based on the portfolio segment as of the dates indicated:

	June 30, 2019		December 31, 2018
	(In thousands)
Commercial and industrial	$	656,186	$	623,037
Commercial tax-exempt	450,307		451,671
Total commercial and industrial	1,106,493		1,074,708
Commercial real estate	2,530,556		2,395,692
Construction and land	200,378		240,306
Residential	3,025,758		2,948,973
Home equity	89,930		90,421
Consumer and other	127,145		143,058
Total	$	7,080,260	$	6,893,158

Schedule of financing receivables, non accrual status

The following table presents nonaccrual loans receivable by class of receivable as of the dates indicated:

	June 30, 2019		December 31, 2018
	(In thousands)
Commercial and industrial	$	1,567	$	2,554
Commercial tax-exempt	—		—
Total commercial and industrial	1,567		2,554
Commercial real estate	—		546
Residential	12,572		7,914
Home equity	3,004		3,031
Consumer and other	12		12
Total	$	17,155	$	14,057

Past due financing receivables

The following tables show the payment status of loans receivable by class of receivable as of the dates indicated:

	June 30, 2019
	Accruing Past Due						Nonaccrual Loans
	30-59 Days Past Due		60-89 Days Past Due		Total Accruing Past Due		Current		30-89 Days Past Due		90 Days or Greater Past Due		Total Non-Accrual Loans		Current Accruing Loans		Total Loans Receivable
	(In thousands)
Commercial and industrial	$	251	$	—	$	251	$	1,194	$	155	$	218	$	1,567	$	654,368	$	656,186
Commercial tax-exempt	—		—		—		—		—		—		—		450,307		450,307
Commercial real estate	982		—		982		—		—		—		—		2,529,574		2,530,556
Construction and land	—		—		—		—		—		—		—		200,378		200,378
Residential (1)	—		334		1,266		4,238		2,961		5,373		12,572		3,011,920		3,025,758
Home equity	—		—		—		385		274		2,345		3,004		86,926		89,930
Consumer and other	867		—		867		7		—		5		12		126,266		127,145
Total	$	2,100	$	334	$	3,366	$	5,824	$	3,390	$	7,941	$	17,155	$	7,059,739	$	7,080,260

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(1) There was one residential loan that was 90+ days past due and accruing for $0.9 million. For this reason, the total accruing past due amount will not equal the sum of 30-59 days past due and 60-89 days past due. This loan was paid off in July 2019.

	December 31, 2018
	Accruing Past Due						Nonaccrual Loans
	30-59 Days Past Due		60-89 Days Past Due		Total Accruing Past Due		Current		30-89 Days Past Due		90 Days or Greater Past Due		Total Non-Accrual Loans		Current Accruing Loans		Total Loans Receivable
	(In thousands)
Commercial and industrial	$	9,794	$	—	$	9,794	$	979	$	—	$	1,575	$	2,554	$	610,689	$	623,037
Commercial tax-exempt	—		—		—		—		—		—		—		451,671		451,671
Commercial real estate	—		—		—		—		—		546		546		2,395,146		2,395,692
Construction and land	—		—		—		—		—		—		—		240,306		240,306
Residential	6,477		366		6,843		2,639		716		4,559		7,914		2,934,216		2,948,973
Home equity	252		350		602		—		48		2,983		3,031		86,788		90,421
Consumer and other	17		5,043		5,060		8		4		—		12		137,986		143,058
Total	$	16,540	$	5,759	$	22,299	$	3,626	$	768	$	9,663	$	14,057	$	6,856,802	$	6,893,158

Financing receivable credit quality indicators

The following tables present the loan portfolio’s credit risk profile by internally assigned grade and class of receivable as of the dates indicated:

	June 30, 2019
	By Loan Grade or Nonaccrual Status
	Pass		Special Mention		Accruing Classified (1)		Nonaccrual Loans		Total
	(In thousands)
Commercial and industrial	$	617,524	$	14,058	$	23,037	$	1,567	$	656,186
Commercial tax-exempt	443,577		2,679		4,051		—		450,307
Commercial real estate	2,452,821		53,940		23,795		—		2,530,556
Construction and land	200,378		—		—		—		200,378
Residential	3,010,186		—		3,000		12,572		3,025,758
Home equity	86,926		—		—		3,004		89,930
Consumer and other	127,133		—		—		12		127,145
Total	$	6,938,545	$	70,677	$	53,883	$	17,155	$	7,080,260

	December 31, 2018
	By Loan Grade or Nonaccrual Status
	Pass		Special Mention		Accruing Classified (1)		Nonaccrual Loans		Total
	(In thousands)
Commercial and industrial	$	581,278	$	16,213	$	22,992	$	2,554	$	623,037
Commercial tax-exempt	444,835		2,785		4,051		—		451,671
Commercial real estate	2,314,223		53,871		27,052		546		2,395,692
Construction and land	234,647		5,659		—		—		240,306
Residential	2,941,059		—		—		7,914		2,948,973
Home equity	87,390		—		—		3,031		90,421
Consumer and other	143,046		—		—		12		143,058
Total	$	6,746,478	$	78,528	$	54,095	$	14,057	$	6,893,158

______________________

(1)

Accruing Classified includes both Substandard and Doubtful classifications.

Impaired financing receivables

The following tables present, by class of receivable, the balance of impaired loans with and without a related allowance, the associated allowance for those impaired loans with a related allowance, and the total unpaid principal on impaired loans:

	As of and for the three and six months ended June 30, 2019
	Recorded Investment (1)		Unpaid Principal Balance		Related Allowance		QTD Average Recorded Investment		YTD Average Recorded Investment		QTD Interest Income Recognized while Impaired		YTD Interest Income Recognized while Impaired
	(In thousands)
With no related allowance recorded:
Commercial and industrial	$	1,669	$	2,616	n/a		$	1,520	$	1,328	$	10	$	25
Commercial tax-exempt	—		—		n/a		—		—		—		—
Commercial real estate	—		—		n/a		—		78		—		256
Construction and land	—		—		n/a		—		—		—		—
Residential	15,127		15,387		n/a		14,079		12,605		103		240
Home equity	2,497		3,059		n/a		2,359		2,018		1		1
Consumer and other	—		—		n/a		—		—		—		—
Subtotal	$	19,293	$	21,062	n/a		17,958		$	16,029	114		$	522
With an allowance recorded:
Commercial and industrial	$	441	$	441	$	93	596		$	1,036	4		$	20
Commercial tax-exempt	—		—		—		—		—		—		—
Commercial real estate	—		—		—		—		—		—		—
Construction and land	—		—		—		—		—		—		—
Residential	778		778		74		733		752		6		13
Home equity	274		274		24		69		776		1		1
Consumer and other	—		—		—		—		—		—		—
Subtotal	$	1,493	$	1,493	$	191	$	1,398	$	2,564	$	11	$	34
Total:
Commercial and industrial	$	2,110	$	3,057	$	93	$	2,116	$	2,364	$	14	$	45
Commercial tax-exempt	—		—		—		—		—		—		—
Commercial real estate	—		—		—		—		78		—		256
Construction and land	—		—		—		—		—		—		—
Residential	15,905		16,165		74		14,812		13,357		109		253
Home equity	2,771		3,333		24		2,428		2,794		2		2
Consumer and other	—		—		—		—		—		—		—
Total	$	20,786	$	22,555	$	191	$	19,356	$	18,593	$	125	$	556

_____________________

(1) Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, if applicable, which was applied to principal.

	As of and for the three and six months ended June 30, 2018
	Recorded Investment (1)		Unpaid Principal Balance		Related Allowance		QTD Average Recorded Investment		YTD Average Recorded Investment		QTD Interest Income Recognized while Impaired		YTD Interest Income Recognized while Impaired
	(In thousands)
With no related allowance recorded:
Commercial and industrial	$	2,015	$	2,954	n/a		$	2,048	$	1,835	$	14	$	22
Commercial tax-exempt	—		—		n/a		—		—		—		—
Commercial real estate	2,932		4,695		n/a		2,939		2,460		25		50
Construction and land	—		—		n/a		82		94		16		16
Residential	10,455		10,815		n/a		10,587		10,009		87		189
Home equity	—		—		n/a		1,311		1,509		15		24
Consumer and other	—		—		n/a		—		—		—		—
Subtotal	$	15,402	$	18,464	n/a		$	16,967	$	15,907	$	157	$	301
With an allowance recorded:
Commercial and industrial	$	303	$	403	$	134	$	76	$	147	$	—	$	2
Commercial tax-exempt	—		—		—		—		—		—		—
Commercial real estate	5,426		5,855		187		5,467		6,055		72		228
Construction and land	—		—		—		—		—		—		—
Residential	816		816		82		818		821		6		12
Home equity	1,769		1,769		597		469		284		—		—
Consumer and other	—		—		—		—		18		—		3
Subtotal	$	8,314	$	8,843	$	1,000	$	6,830	$	7,325	$	78	$	245
Total:
Commercial and industrial	$	2,318	$	3,357	$	134	$	2,124	$	1,982	$	14	$	24
Commercial tax-exempt	—		—		—		—		—		—		—
Commercial real estate	8,358		10,550		187		8,406		8,515		97		278
Construction and land	—		—		—		82		94		16		16
Residential	11,271		11,631		82		11,405		10,830		93		201
Home equity	1,769		1,769		597		1,780		1,793		15		24
Consumer and other	—		—		—		—		18		—		3
Total	$	23,716	$	27,307	$	1,000	$	23,797	$	23,232	$	235	$	546

_____________________

(1) Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, if applicable, which was applied to principal.

	As of and for the year ended December 31, 2018
	Recorded Investment (1)		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized while Impaired
	(In thousands)
With no related allowance recorded:
Commercial and industrial	$	1,435	$	2,397	n/a		$	1,614	$	69
Commercial tax-exempt	—		—		n/a		—		—
Commercial real estate	546		900		n/a		2,002		1,544
Construction and land	—		—		n/a		50		16
Residential	8,403		8,764		n/a		9,638		408
Home equity	990		990		n/a		1,041		24
Consumer and other	—		—		n/a		—		—
Subtotal	$	11,374	$	13,051	n/a		$	14,345	$	2,061
With an allowance recorded:
Commercial and industrial	$	1,770	$	1,972	$	598	$	631	$	15
Commercial tax-exempt	—		—		—		—		—
Commercial real estate	—		—		—		4,087		705
Construction and land	—		—		—		—		—
Residential	780		780		75		785		22
Home equity	1,719		1,719		562		959		11
Consumer and other	—		—		—		10		3
Subtotal	$	4,269	$	4,471	$	1,235	$	6,472	$	756
Total:
Commercial and industrial	$	3,205	$	4,369	$	598	$	2,245	$	84
Commercial tax-exempt	—		—		—		—		—
Commercial real estate	546		900		—		6,089		2,249
Construction and land	—		—		—		50		16
Residential	9,183		9,544		75		10,423		430
Home equity	2,709		2,709		562		2,000		35
Consumer and other	—		—		—		10		3
Total	$	15,643	$	17,522	$	1,235	$	20,817	$	2,817

_____________________

(1)

Recorded investment represents the client loan balance net of historical charge-offs and historical nonaccrual interest paid, if applicable, which was applied to principal.

Troubled debt restructurings on financing receivables

The following tables present the balance of TDRs that were restructured or defaulted during the periods indicated:

	As of and for the three months ended June 30, 2019
	Restructured Current Quarter					TDRs that defaulted in the Current Quarter that were restructured in prior twelve months
	# of Loans	Pre- modification recorded investment		Post- modification recorded investment		# of Loans	Post- modification recorded investment
	(In thousands, except number of loans)
Commercial and industrial	—	$	—	$	—	—	$	—
Commercial tax exempt	—	—		—		—	—
Commercial real estate	—	—		—		—	—
Construction and land	—	—		—		—	—
Residential (1)	1	222		222		—	—
Home equity (1)	1	274		274		—	—
Consumer and other	—	—		—		—	—
Total	2	$	496	$	496	—	$	—

_____________________

(1) Represents the following type of concession: temporary reduction of interest rate.

	As of and for the six months ended June 30, 2019
	Restructured Year to Date					TDRs that defaulted in the Year to Date that were restructured in prior twelve months
	# of Loans	Pre- modification recorded investment		Post- modification recorded investment		# of Loans	Post- modification recorded investment
	(In thousands, except number of loans)
Commercial and industrial	1	$	179	$	179	—	$	—
Commercial tax exempt	—	—		—		—	—
Commercial real estate	—	—		—		—	—
Construction and land	—	—		—		—	—
Residential	2	3,222		3,222		—	—
Home equity	1	274		274		—	—
Consumer and other	—	—		—		—	—
Total	4	$	3,675	$	3,675	—	$	—

	As of and for the three and six months ended June 30, 2019
	Extension of term			Temporary rate reduction			Payment deferral			Combination of concessions (1)			Total concessions
	# of Loans	Post- modifi- cation recorded invest- ment		# of Loans	Post- modifi- cation recorded invest- ment		# of Loans	Post- modifi- cation recorded invest- ment		# of Loans	Post- modifi- cation recorded invest- ment		# of Loans	Post- modifi- cation recorded invest- ment
	(Dollars in thousands)
Commercial and industrial	1	$	179	—	$	—	—	$	—	—	$	—	1	$	179
Commercial real estate	—	—		—	—		—	—		—	—		—	—
Construction and land	—	—		—	—		—	—		—	—		—	—
Residential	—	—		2	3,222		—	—		—	—		2	3,222
Home equity	—	—		1	274		—	—		—	—		1	274
Consumer and other	—	—		—	—		—	—		—	—		—	—

	As of and for the three and six months ended June 30, 2018
	Restructured Current Quarter					TDRs that defaulted in the Current Quarter that were restructured in prior twelve months
	# of Loans	Pre- modification recorded investment		Post- modification recorded investment		# of Loans	Post- modification recorded investment
	(Dollars in thousands)
Commercial and industrial (1)	1	$	100	$	100	—	$	—
Commercial real estate	—	—		—		—	—
Construction and land	—	—		—		—	—
Residential	—	—		—		—	—
Home equity	—	—		—		—	—
Consumer and other	—	—		—		—	—
Total	1	$	100	$	100	—	$	—

______________________

(1)    Represents the following type of concession: extension of term.

Loan participation amounts by loan type

The following table presents a summary of the loan participations serviced for others and loans serviced for others based on class of receivable as of the dates indicated:

	June 30, 2019		December 31, 2018
	(In thousands)
Commercial and industrial	$	9,269	$	8,024
Commercial tax-exempt	18,824		19,105
Commercial real estate	44,613		60,688
Construction and land	20,135		39,966
Total loan participations serviced for others	$	92,841	$	127,783
Residential	$	30,394	$	33,168
Total loans serviced for others	$	30,394	$	33,168