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Loans receivable
3 Months Ended
Mar. 31, 2014
Loans receivable  
Loans receivable

(4)                                 Loans receivable

 

The following table shows a summary of our loans receivable at March 31, 2014 and December 31, 2013 (in thousands):

 

 

 

March 31,

 

December 31,

 

 

 

2014

 

2013

 

Personal Banking:

 

 

 

 

 

Loans held for sale

 

$

 

221

 

Residential mortgage loans

 

2,493,684

 

2,491,917

 

Home equity loans

 

1,065,988

 

1,083,939

 

Other consumer loans

 

223,045

 

228,348

 

Total Personal Banking

 

3,782,717

 

3,804,425

 

 

 

 

 

 

 

Business Banking:

 

 

 

 

 

Commercial real estate

 

1,740,973

 

1,665,274

 

Commercial loans

 

446,175

 

437,559

 

Total Business Banking

 

2,187,148

 

2,102,833

 

Total loans receivable, gross

 

5,969,865

 

5,907,258

 

 

 

 

 

 

 

Deferred loan costs

 

2,846

 

2,461

 

Allowance for loan losses

 

(76,234

)

(71,348

)

Undisbursed loan proceeds:

 

 

 

 

 

Residential mortgage loans

 

(10,842

)

(11,595

)

Commercial real estate

 

(76,718

)

(56,875

)

Commercial loans

 

(34,077

)

(34,958

)

Total loans receivable, net

 

$

5,774,840

 

5,734,943

 

 

The following table provides information related to the allowance for loan losses by portfolio segment and by class of financing receivable for the quarter ended March 31, 2014 (in thousands):

 

 

 

Balance
March 31,
2014

 

Current
period
provision

 

Charge-offs

 

Recoveries

 

Balance
December 31,
2013

 

Personal Banking:

 

 

 

 

 

 

 

 

 

 

 

Residental mortgage loans

 

$

7,467

 

35

 

(459

)

16

 

7,875

 

Home equity loans

 

6,958

 

37

 

(372

)

48

 

7,245

 

Other consumer loans

 

5,280

 

1,184

 

(1,716

)

325

 

5,487

 

Total Personal Banking

 

19,705

 

1,256

 

(2,547

)

389

 

20,607

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Banking:

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

36,209

 

1,551

 

(932

)

621

 

34,969

 

Commercial loans

 

16,169

 

5,189

 

(770

)

640

 

11,110

 

Total Business Banking

 

52,378

 

6,740

 

(1,702

)

1,261

 

46,079

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated

 

4,151

 

(511

)

 

 

4,662

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

76,234

 

7,485

 

(4,249

)

1,650

 

71,348

 

 

The following table provides information related to the allowance for loan losses by portfolio segment and by class of financing receivable for the quarter ended March 31, 2013 (in thousands):

 

 

 

Balance
March 31,
2013

 

Current
period
provision

 

Charge-offs

 

Recoveries

 

Balance
December 31,
2012

 

Personal Banking:

 

 

 

 

 

 

 

 

 

 

 

Residental mortgage loans

 

$

7,878

 

452

 

(679

)

103

 

8,002

 

Home equity loans

 

8,211

 

224

 

(370

)

63

 

8,294

 

Other consumer loans

 

4,860

 

796

 

(1,404

)

312

 

5,156

 

Total Personal Banking

 

20,949

 

1,472

 

(2,453

)

478

 

21,452

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Banking:

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

35,560

 

4,857

 

(3,990

)

194

 

34,499

 

Commercial loans

 

11,473

 

828

 

(2,680

)

83

 

13,242

 

Total Business Banking

 

47,033

 

5,685

 

(6,670

)

277

 

47,741

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated

 

4,027

 

1

 

 

 

4,026

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

72,009

 

7,158

 

(9,123

)

755

 

73,219

 

 

The following table provides information related to the loan portfolio by portfolio segment and by class of financing receivable at March 31, 2014 (in thousands):

 

 

 

Recorded
investment in
loans
receivable

 

Allowance for
loan losses

 

Recorded
investment in
loans on
nonaccrual
(1)

 

Recorded
investment in
loans past
due 90 days
or more and
still accruing

 

TDRs

 

Allowance
related to
TDRs

 

Additional
commitments
to customers
with loans
classified as
TDRs

 

Personal Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residental mortgage loans

 

$

2,485,688

 

7,467

 

24,283

 

1

 

5,210

 

972

 

 

Home equity loans

 

1,065,988

 

6,958

 

10,831

 

 

2,214

 

392

 

 

Other consumer loans

 

223,045

 

5,280

 

2,089

 

686

 

 

 

 

Total Personal Banking

 

3,774,721

 

19,705

 

37,203

 

687

 

7,424

 

1,364

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

1,664,255

 

36,209

 

47,682

 

 

45,932

 

7,412

 

615

 

Commercial loans

 

412,098

 

16,169

 

24,197

 

22

 

21,155

 

5,333

 

455

 

Total Business Banking

 

2,076,353

 

52,378

 

71,879

 

22

 

67,087

 

12,745

 

1,070

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

5,851,074

 

72,083

 

109,082

 

709

 

74,511

 

14,109

 

1,070

 

 

(1)   Includes $34.3 million of nonaccrual TDRs.

 

The following table provides information related to the loan portfolio by portfolio segment and by class of financing receivable at December 31, 2013 (in thousands):

 

 

 

Recorded
investment in
loans 
receivable

 

Allowance for
loan losses

 

Recorded
investment in
loans on
nonaccrual
(1)

 

Recorded
investment in
loans past
due 90 days
or more and
still accruing

 

TDRs

 

Allowance
related to
TDRs

 

Additional
commitments
to customers
with loans
classified as
TDRs

 

Personal Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residental mortgage loans

 

$

2,483,004

 

7,875

 

27,277

 

 

4,004

 

863

 

 

Home equity loans

 

1,083,939

 

7,245

 

9,863

 

1

 

2,240

 

371

 

 

Other consumer loans

 

228,348

 

5,487

 

2,257

 

666

 

 

 

 

Total Personal Banking

 

3,795,291

 

20,607

 

39,397

 

667

 

6,244

 

1,234

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

1,608,399

 

34,969

 

41,803

 

 

48,829

 

4,503

 

301

 

Commercial loans

 

402,601

 

11,110

 

26,021

 

23

 

24,093

 

2,778

 

454

 

Total Business Banking

 

2,011,000

 

46,079

 

67,824

 

23

 

72,922

 

7,281

 

755

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

5,806,291

 

66,686

 

107,221

 

690

 

79,166

 

8,515

 

755

 

 

(1)   Includes $28.9 million of nonaccrual TDRS.

 

The following table provides geographical and delinquency information related to the loan portfolio by portfolio segment and class of financing receivable at March 31, 2014 (in thousands):

 

 

 

Pennsylvania

 

New York

 

Ohio

 

Maryland

 

Other

 

Total

 

Recorded investment in loans receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

Personal Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage loans

 

$

2,114,607

 

160,813

 

18,636

 

137,119

 

54,513

 

2,485,688

 

Home equity loans

 

908,780

 

114,567

 

9,872

 

26,832

 

5,937

 

1,065,988

 

Other consumer loans

 

205,977

 

9,977

 

2,995

 

1,209

 

2,887

 

223,045

 

Total Personal Banking

 

3,229,364

 

285,357

 

31,503

 

165,160

 

63,337

 

3,774,721

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

913,257

 

525,951

 

25,180

 

137,987

 

61,880

 

1,664,255

 

Commercial loans

 

277,043

 

79,542

 

16,386

 

27,904

 

11,223

 

412,098

 

Total Business Banking

 

1,190,300

 

605,493

 

41,566

 

165,891

 

73,103

 

2,076,353

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

4,419,664

 

890,850

 

73,069

 

331,051

 

136,440

 

5,851,074

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentage of total loans receivable

 

75.6

%

15.2

%

1.2

%

5.7

%

2.3

%

100.0

%

 

 

 

Pennsylvania

 

New York

 

Ohio

 

Maryland

 

Other

 

Total

 

Loans 90 or more days delinquent:

 

 

 

 

 

 

 

 

 

 

 

 

 

Personal Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage loans

 

$

13,863

 

1,280

 

294

 

2,640

 

2,487

 

20,564

 

Home equity loans

 

5,784

 

1,194

 

139

 

1,144

 

159

 

8,420

 

Other consumer loans

 

1,726

 

67

 

1

 

11

 

13

 

1,818

 

Total Personal Banking

 

21,373

 

2,541

 

434

 

3,795

 

2,659

 

30,802

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

13,699

 

1,827

 

41

 

417

 

114

 

16,098

 

Commercial loans

 

2,973

 

1,071

 

 

157

 

293

 

4,494

 

Total Business Banking

 

16,672

 

2,898

 

41

 

574

 

407

 

20,592

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

38,045

 

5,439

 

475

 

4,369

 

3,066

 

51,394

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentage of total loans 90 or more days denliquent

 

74.0

%

10.6

%

0.9

%

8.5

%

6.0

%

100.0

%

 

The following table provides geographical and delinquency information related to the loan portfolio by portfolio segment and class of financing receivable at December 31, 2013 (in thousands):

 

 

 

Pennsylvania

 

New York

 

Ohio

 

Maryland

 

Other

 

Total

 

Recorded investment in loans receivable:

 

 

 

 

 

 

 

 

 

 

 

 

 

Personal Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage loans

 

$

2,108,018

 

160,931

 

19,468

 

140,087

 

54,500

 

2,483,004

 

Home equity loans

 

923,365

 

117,081

 

10,152

 

27,400

 

5,941

 

1,083,939

 

Other consumer loans

 

207,243

 

9,890

 

3,007

 

1,256

 

6,952

 

228,348

 

Total Personal Banking

 

3,238,626

 

287,902

 

32,627

 

168,743

 

67,393

 

3,795,291

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

876,359

 

484,071

 

27,136

 

123,279

 

97,554

 

1,608,399

 

Commercial loans

 

276,469

 

63,689

 

14,645

 

27,496

 

20,302

 

402,601

 

Total Business Banking

 

1,152,828

 

547,760

 

41,781

 

150,775

 

117,856

 

2,011,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

4,391,454

 

835,662

 

74,408

 

319,518

 

185,249

 

5,806,291

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentage of total loans receivable

 

75.6

%

14.4

%

1.3

%

5.5

%

3.2

%

100.0

%

 

 

 

Pennsylvania

 

New York

 

Ohio

 

Maryland

 

Other

 

Total

 

Loans 90 or more days delinquent:

 

 

 

 

 

 

 

 

 

 

 

 

 

Personal Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage loans

 

$

15,995

 

1,184

 

229

 

3,891

 

3,326

 

24,625

 

Home equity loans

 

5,279

 

1,783

 

116

 

1,095

 

71

 

8,344

 

Other consumer loans

 

2,006

 

35

 

3

 

 

13

 

2,057

 

Total Personal Banking

 

23,280

 

3,002

 

348

 

4,986

 

3,410

 

35,026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

15,581

 

1,669

 

962

 

108

 

113

 

18,433

 

Commercial loans

 

3,045

 

645

 

 

314

 

294

 

4,298

 

Total Business Banking

 

18,626

 

2,314

 

962

 

422

 

407

 

22,731

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

41,906

 

5,316

 

1,310

 

5,408

 

3,817

 

57,757

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentage of total loans 90 or more days delinquent

 

72.5

%

9.2

%

2.3

%

9.4

%

6.6

%

100.0

%

 

The following table provides information related to the composition of impaired loans by portfolio segment and by class of financing receivable at and for the quarter ended March 31, 2014 (in thousands):

 

 

 

Nonaccrual
loans 90 or
more days
delinquent

 

Nonaccrual
loans less
than 90
days
delinquent

 

Loans less
than 90
days
delinquent
reviewed for
impairment

 

TDRs less
than 90
days
delinquent
not included
elsewhere

 

Total
impaired
loans

 

Average
recorded
investment
in impaired
loans

 

Interest
income
recognized
on impaired
loans

 

Personal Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residental mortgage loans

 

$

20,564

 

3,719

 

 

4,369

 

28,652

 

28,422

 

187

 

Home equity loans

 

8,420

 

2,411

 

 

1,787

 

12,618

 

12,047

 

143

 

Other consumer loans

 

1,818

 

271

 

 

 

2,089

 

2,355

 

17

 

Total Personal Banking

 

30,802

 

6,401

 

 

6,156

 

43,359

 

42,824

 

347

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

16,098

 

31,584

 

25,336

 

14,230

 

87,248

 

83,858

 

860

 

Commercial loans

 

4,494

 

19,703

 

4,239

 

3,364

 

31,800

 

34,897

 

226

 

Total Business Banking

 

20,592

 

51,287

 

29,575

 

17,594

 

119,048

 

118,755

 

1,086

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

51,394

 

57,688

 

29,575

 

23,750

 

162,407

 

161,579

 

1,433

 

 

The following table provides information related to the composition of impaired loans by portfolio segment and by class of financing receivable at and for the year ended December 31, 2013 (in thousands):

 

 

 

Nonaccrual
loans 90 or
more days
delinquent

 

Nonaccrual
loans less
than 90
days
delinquent

 

Loans less
than 90
days
delinquent
reviewed for
impairment

 

TDRs less
than 90
days
delinquent
not included
elsewhere

 

Total
impaired
loans

 

Average
recorded
investment
in impaired
loans

 

Interest
income
recognized
on impaired
loans

 

Personal Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residental mortgage loans

 

$

24,625

 

2,652

 

 

3,372

 

30,649

 

29,994

 

723

 

Home equity loans

 

8,344

 

1,519

 

 

1,810

 

11,673

 

10,828

 

383

 

Other consumer loans

 

2,057

 

200

 

 

 

2,257

 

1,976

 

44

 

Total Personal Banking

 

35,026

 

4,371

 

 

5,182

 

44,579

 

42,798

 

1,150

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

18,433

 

23,370

 

39,199

 

13,060

 

94,062

 

90,912

 

3,678

 

Commercial loans

 

4,298

 

21,723

 

5,219

 

3,963

 

35,203

 

41,303

 

1,127

 

Total Business Banking

 

22,731

 

45,093

 

44,418

 

17,023

 

129,265

 

132,215

 

4,805

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

57,757

 

49,464

 

44,418

 

22,205

 

173,844

 

175,013

 

5,955

 

 

The following table provides information related to the evaluation of impaired loans by portfolio segment and by class of financing receivable at March 31, 2014 (in thousands):

 

 

 

Loans
collectively
evaluated for
impairment

 

Loans
individually
evaluated for
impairment

 

Loans
individually
evaluated for
impairment
for which
there is a
related
impairment
reserve

 

Related
impairment
reserve

 

Loans
individually
evaluated for
impairment
for which
there is no
related
reserve

 

Personal Banking:

 

 

 

 

 

 

 

 

 

 

 

Residental mortgage loans

 

$

2,479,167

 

6,521

 

6,521

 

1,240

 

 

Home equity loans

 

1,063,743

 

2,245

 

2,245

 

347

 

 

Other consumer loans

 

222,955

 

90

 

90

 

17

 

 

Total Personal Banking

 

3,765,865

 

8,856

 

8,856

 

1,604

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Banking:

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

1,577,687

 

86,568

 

50,176

 

8,520

 

36,392

 

Commercial loans

 

384,954

 

27,144

 

18,966

 

7,242

 

8,178

 

Total Business Banking

 

1,962,641

 

113,712

 

69,142

 

15,762

 

44,570

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

5,728,506

 

122,568

 

77,998

 

17,366

 

44,570

 

 

The following table provides information related to the evaluation of impaired loans by portfolio segment and by class of financing receivable at December 31, 2013 (in thousands):

 

 

 

Loans
collectively
evaluated for
impairment

 

Loans
individually
evaluated for
impairment

 

Loans
individually
evaluated for
impairment
for which
there is a
related
impairment
reserve

 

Related
impairment
reserve

 

Loans
individually
evaluated for
impairment
for which
there is no
related
reserve

 

Personal Banking:

 

 

 

 

 

 

 

 

 

 

 

Residental mortgage loans

 

$

2,477,888

 

5,116

 

5,116

 

1,136

 

 

Home equity loans

 

1,081,699

 

2,240

 

2,240

 

333

 

 

Other consumer loans

 

228,227

 

121

 

121

 

1

 

 

Total Personal Banking

 

3,787,814

 

7,477

 

7,477

 

1,470

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Banking:

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

1,532,117

 

76,282

 

45,761

 

6,300

 

30,521

 

Commercial loans

 

371,287

 

31,314

 

21,395

 

4,133

 

9,919

 

Total Business Banking

 

1,903,404

 

107,596

 

67,156

 

10,433

 

40,440

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

5,691,218

 

115,073

 

74,633

 

11,903

 

40,440

 

 

Our loan portfolios include loans that have been modified in a troubled debt restructuring (TDR), where concessions have been granted to borrowers who have experienced financial difficulties. These concessions typically result from our loss mitigation activities and could include: extending the note’s maturity date, permitting interest only payments, reducing the interest rate to a rate lower than current market rates for new debt with similar risk, reducing the principal payment, principal forbearance or other actions.  These concessions are applicable to all loan segments and classes. Certain TDRs are classified as nonperforming at the time of restructuring and may be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period of at least six months.

 

When we modify loans in a TDR, we evaluate any possible impairment similar to other impaired loans based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, the loan’s observable market price or the current fair value of the collateral, less selling costs, for collateral dependent loans.  If we determine that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance.  In periods subsequent to modification, we evaluate all TDRs, including those that have payment defaults, for possible impairment, using ASC 310-10. As a result, loans modified in a TDR may have the financial effect of increasing the specific allowance associated with the loan.

 

Loans modified in a TDR are closely monitored for delinquency as an early indicator of possible future default.  If loans modified in a TDR subsequently default, we evaluate the loan for possible further impairment. The allowance may be increased, adjustments may be made in the allocation of the allowance, partial charge-offs may be taken to further write-down the carrying value of the loan, or the loan may be charged-off completely.

 

The following table provides a roll forward of troubled debt restructurings for the periods indicated (in thousands):

 

 

 

For the quarters ended March 31,

 

 

 

2014

 

2013

 

 

 

Number of
contracts

 

 

 

Number of
contracts

 

 

 

Beginning TDR balance:

 

276

 

$

79,166

 

225

 

$

89,444

 

New TDRs

 

11

 

1,468

 

58

 

5,611

 

Net paydowns

 

 

 

(4,494

)

 

 

(2,337

)

Charge-offs:

 

 

 

 

 

 

 

 

 

Home equity loans

 

 

 

1

 

(23

)

Commercial real estate loans

 

2

 

(31

)

2

 

(650

)

Commercial loans

 

1

 

(7

)

2

 

(17

)

Paid-off loans:

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

2

 

(277

)

1

 

(310

)

Commercial loans

 

6

 

(1,314

)

8

 

(353

)

Ending TDR balance:

 

276

 

$

74,511

 

269

 

$

91,365

 

 

 

 

 

 

 

 

 

 

 

Accruing TDRs

 

 

 

$

40,243

 

 

 

$

45,256

 

Non-accrual TDRs

 

 

 

34,268

 

 

 

46,109

 

 

The following table provides information related to troubled debt restructurings (including re-modified TDRs) by portfolio segment and by class of financing receivable during the periods indicated (dollars in thousands):

 

 

 

For the quarter ended
March 31, 2014

 

 

 

Number 
of
contracts

 

Recorded
investment
at the time of
modification

 

Current
recorded
investment

 

Current
allowance

 

Troubled debt restructurings:

 

 

 

 

 

 

 

 

 

Personal Banking:

 

 

 

 

 

 

 

 

 

Residential mortgage loans

 

6

 

$

1,290

 

1,289

 

119

 

Home equity loans

 

 

 

 

 

Other consumer loans

 

 

 

 

 

Total Personal Banking

 

6

 

1,290

 

1,289

 

119

 

 

 

 

 

 

 

 

 

 

 

Business Banking:

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

3

 

89

 

87

 

32

 

Commercial loans

 

2

 

89

 

107

 

10

 

Total Business Banking

 

5

 

178

 

194

 

42

 

 

 

 

 

 

 

 

 

 

 

Total

 

11

 

$

1,468

 

1,483

 

161

 

 

 

 

 

 

 

 

 

 

 

Troubled debt restructurings that subsequently defaulted:

 

 

 

 

 

 

 

 

 

Personal Banking:

 

 

 

 

 

 

 

 

 

Residential mortgage loans

 

2

 

$

259

 

227

 

58

 

Home equity loans

 

 

 

 

 

Other consumer loans

 

 

 

 

 

Total Personal Banking

 

2

 

259

 

227

 

58

 

 

 

 

 

 

 

 

 

 

 

Business Banking:

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

2

 

505

 

484

 

67

 

Commercial loans

 

2

 

327

 

331

 

98

 

Total Business Banking

 

4

 

832

 

815

 

165

 

 

 

 

 

 

 

 

 

 

 

Total

 

6

 

$

1,091

 

1,042

 

223

 

 

The following table provides information related to troubled debt restructurings (including re-modified TDRs) by portfolio segment and by class of financing receivable during the periods indicated (dollars in thousands):

 

 

 

For the quarter ended
March 31, 2013

 

 

 

Number
of
contracts

 

Recorded
investment
at the time of
modification

 

Current
recorded
investment

 

Current
allowance

 

Troubled debt restructurings:

 

 

 

 

 

 

 

 

 

Personal Banking:

 

 

 

 

 

 

 

 

 

Residential mortgage loans

 

2

 

$

179

 

162

 

26

 

Home equity loans

 

3

 

287

 

285

 

133

 

Other consumer loans

 

 

 

 

 

Total Personal Banking

 

5

 

466

 

447

 

159

 

 

 

 

 

 

 

 

 

 

 

Business Banking:

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

32

 

3,417

 

2,878

 

270

 

Commercial loans

 

21

 

1,728

 

1,513

 

171

 

Total Business Banking

 

53

 

5,145

 

4,391

 

441

 

 

 

 

 

 

 

 

 

 

 

Total

 

58

 

$

5,611

 

4,838

 

600

 

 

 

 

 

 

 

 

 

 

 

Troubled debt restructurings that subsequently defaulted:

 

 

 

 

 

 

 

 

 

Personal Banking:

 

 

 

 

 

 

 

 

 

Residential mortgage loans

 

1

 

$

244

 

237

 

30

 

Home equity loans

 

1

 

183

 

130

 

106

 

Other consumer loans

 

 

 

 

 

Total Personal Banking

 

2

 

427

 

367

 

136

 

 

 

 

 

 

 

 

 

 

 

Business Banking:

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

3

 

778

 

713

 

38

 

Commercial loans

 

6

 

16,267

 

11,708

 

2,174

 

Total Business Banking

 

9

 

17,045

 

12,421

 

2,212

 

 

 

 

 

 

 

 

 

 

 

Total

 

11

 

$

17,472

 

12,788

 

2,348

 

 

The following table provides information for troubled debt restructurings (including re-modified TDRs) by type of modification by portfolio segment and by class of financing receivable for the quarter ended March 31, 2014 (dollars in thousands):

 

 

 

 

 

Type of modification

 

 

 

 

 

Number of
contracts

 

Rate

 

Payment

 

Maturity
date

 

Other

 

Total

 

Personal Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

Residental mortgage loans

 

6

 

$

 

 

1,289

 

 

1,289

 

Home equity loans

 

 

 

 

 

 

 

Other consumer loans

 

 

 

 

 

 

 

Total Personal Banking

 

6

 

 

 

1,289

 

 

1,289

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

3

 

 

 

59

 

28

 

87

 

Commercial loans

 

2

 

 

102

 

 

5

 

107

 

Total Business Banking

 

5

 

 

102

 

59

 

33

 

194

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

11

 

$

 

102

 

1,348

 

33

 

1,483

 

 

The following table provides information for troubled debt restructurings (including re-modified TDRs) by type of modification by portfolio segment and by class of financing receivable for the quarter ended March 31, 2013 (dollars in thousands):

 

 

 

 

 

Type of modification

 

 

 

 

 

Number of
contracts

 

Rate

 

Payment

 

Maturity
date

 

Other

 

Total

 

Personal Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

Residental mortgage loans

 

2

 

$

 

 

162

 

 

162

 

Home equity loans

 

3

 

 

 

285

 

 

285

 

Other consumer loans

 

 

 

 

 

 

 

Total Personal Banking

 

5

 

 

 

447

 

 

447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

32

 

990

 

458

 

474

 

956

 

2,878

 

Commercial loans

 

21

 

139

 

452

 

806

 

116

 

1,513

 

Total Business Banking

 

53

 

1,129

 

910

 

1,280

 

1,072

 

4,391

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

58

 

$

1,129

 

910

 

1,727

 

1,072

 

4,838

 

 

The following table provides information related to re-modified troubled debt restructurings by portfolio segment and by class of financing receivable for the quarter ended March 31, 2014 (dollars in thousands):

 

 

 

Number of re-

 

Type of re-modification

 

 

 

 

 

modified
TDRs

 

Rate

 

Payment

 

Maturity
date

 

Other

 

Total

 

Personal Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

Residental mortgage loans

 

1

 

$

 

 

77

 

 

77

 

Home equity loans

 

 

 

 

 

 

 

Other consumer loans

 

 

 

 

 

 

 

Total Personal Banking

 

1

 

 

 

77

 

 

77

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

2

 

 

 

59

 

18

 

77

 

Commercial loans

 

1

 

 

 

 

5

 

5

 

Total Business Banking

 

3

 

 

 

59

 

23

 

82

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

4

 

$

 

 

136

 

23

 

159

 

 

No troubled debt restructurings were re-modified during the quarter ended March 31, 2013.

 

The following table provides information related to loan payment delinquencies at March 31, 2014 (in thousands):

 

 

 

30-59 Days
delinquent

 

60-89 Days
delinquent

 

90 Days or
greater
delinquent

 

Total
delinquency

 

Current

 

Recorded
investment
in loans
receivable

 

Personal Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage loans

 

$

26,874

 

3,674

 

20,564

 

51,112

 

2,434,576

 

2,485,688

 

Home equity loans

 

5,449

 

1,437

 

8,420

 

15,306

 

1,050,682

 

1,065,988

 

Other consumer loans

 

3,412

 

1,289

 

1,818

 

6,519

 

216,526

 

223,045

 

Total Personal Banking

 

35,735

 

6,400

 

30,802

 

72,937

 

3,701,784

 

3,774,721

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

26,518

 

2,570

 

16,098

 

45,186

 

1,619,069

 

1,664,255

 

Commercial loans

 

1,375

 

473

 

4,494

 

6,342

 

405,756

 

412,098

 

Total Business Banking

 

27,893

 

3,043

 

20,592

 

51,528

 

2,024,825

 

2,076,353

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

63,628

 

9,443

 

51,394

 

124,465

 

5,726,609

 

5,851,074

 

 

The following table provides information related to loan payment delinquencies at December 31, 2013 (in thousands):

 

 

 

30-59 Days
delinquent

 

60-89 Days
delinquent

 

90 Days or
greater
delinquent

 

Total
delinquency

 

Current

 

Recorded
investment
in loans
receivable

 

Personal Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage loans

 

$

27,486

 

7,568

 

24,625

 

59,679

 

2,423,325

 

2,483,004

 

Home equity loans

 

6,946

 

2,243

 

8,344

 

17,533

 

1,066,406

 

1,083,939

 

Other consumer loans

 

4,515

 

1,866

 

2,057

 

8,438

 

219,910

 

228,348

 

Total Personal Banking

 

38,947

 

11,677

 

35,026

 

85,650

 

3,709,641

 

3,795,291

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

8,449

 

3,968

 

18,433

 

30,850

 

1,577,549

 

1,608,399

 

Commercial loans

 

9,243

 

1,555

 

4,298

 

15,096

 

387,505

 

402,601

 

Total Business Banking

 

17,692

 

5,523

 

22,731

 

45,946

 

1,965,054

 

2,011,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

56,639

 

17,200

 

57,757

 

131,596

 

5,674,695

 

5,806,291

 

 

Credit quality indicators:  We categorize loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. We analyze loans individually by classifying the loans by credit risk.  Credit relationships greater than or equal to $1.0 million classified as special mention or substandard are reviewed quarterly for deterioration or improvement to determine if the loan is appropriately classified.  We use the following definitions for risk ratings other than pass:

 

Special mention — Loans designated as special mention have specific, well-defined risk issues, which create a high level of uncertainty regarding the long-term viability of the business. Loans in this class are considered to have high-risk characteristics.  A special mention loan exhibits material negative financial trends due to company-specific or systemic conditions.  If these potential weaknesses are not mitigated, they threaten the borrower’s capacity to meet its debt obligations.  Special mention loans still demonstrate sufficient financial flexibility to react to and positively address the root cause of the adverse financial trends without significant deviations from their current business strategy. Their potential weaknesses deserve our close attention and warrant enhanced monitoring.

 

Substandard — Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any.  Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt.  They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected.

 

Doubtful — Loans classified as doubtful have all the weaknesses inherent in those classified as substandard.   In addition, those weaknesses make collection or liquidation in full highly questionable and improbable.   A loan classified as doubtful exhibits discernible loss potential, but a complete loss seems very unlikely.  The possibility of a loss on a doubtful loan is high, but because of certain important and reasonably specific pending factors that may strengthen the loan, its classification as an estimated loss is deferred until a more exact status can be determined.

 

Loss Loans classified as loss are considered uncollectible and of such value that the continuance as a loan is not warranted.  A loss classification does not mean that the loan has no recovery or salvage value; instead, it means that it is not practical or desirable to defer writing off all or a portion of a basically worthless loan even though partial recovery may be possible in the future.

 

The following table sets forth information about credit quality indicators, which were updated during the quarter ended March 31, 2014 (in thousands):

 

 

 

Pass

 

Special
mention

 

Substandard

 

Doubtful

 

Loss

 

Recorded
investment
in loans
receivable

 

Personal Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage loans

 

$

2,469,561

 

 

14,649

 

 

1,478

 

2,485,688

 

Home equity loans

 

1,057,568

 

 

8,420

 

 

 

1,065,988

 

Other consumer loans

 

221,776

 

 

1,269

 

 

 

223,045

 

Total Personal Banking

 

3,748,905

 

 

24,338

 

 

1,478

 

3,774,721

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

1,456,037

 

54,004

 

151,248

 

2,966

 

 

1,664,255

 

Commercial loans

 

357,778

 

11,987

 

33,515

 

8,818

 

 

412,098

 

Total Business Banking

 

1,813,815

 

65,991

 

184,763

 

11,784

 

 

2,076,353

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

5,562,720

 

65,991

 

209,101

 

11,784

 

1,478

 

5,851,074

 

 

The following table sets forth information about credit quality indicators, which were updated during the year ended December 31, 2013 (in thousands):

 

 

 

Pass

 

Special
mention

 

Substandard

 

Doubtful

 

Loss

 

Recorded
investment
in loans
receivable

 

Personal Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage loans

 

$

2,464,057

 

 

17,626

 

 

1,321

 

2,483,004

 

Home equity loans

 

1,075,595

 

 

8,344

 

 

 

1,083,939

 

Other consumer loans

 

226,922

 

 

1,426

 

 

 

228,348

 

Total Personal Banking

 

3,766,574

 

 

27,396

 

 

1,321

 

3,795,291

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Banking:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

1,398,652

 

46,557

 

161,906

 

1,284

 

 

1,608,399

 

Commercial loans

 

345,612

 

12,045

 

43,040

 

1,904

 

 

402,601

 

Total Business Banking

 

1,744,264

 

58,602

 

204,946

 

3,188

 

 

2,011,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

5,510,838

 

58,602

 

232,342

 

3,188

 

1,321

 

5,806,291