Loans and the Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2015

Receivables [Abstract]

Schedule of Recorded Investment in Loans by Category

The recorded investment in loans is presented in the Consolidated Balance Sheets net of deferred loan fees and costs of $2.2 million and $2.4 million at March 31, 2015 and December 31, 2014, respectively.

(unaudited, in thousands)	March 31, 2015		December 31, 2014
Commercial real estate:
Land and construction	$	288,075	$	262,643
Improved property		1,908,869		1,682,817
Total commercial real estate		2,196,944		1,945,460
Commercial and industrial		709,621		638,410
Residential real estate		1,239,163		928,770
Home equity		362,163		330,031
Consumer		365,830		244,095
Total portfolio loans		4,873,721		4,086,766
Loans held for sale		6,064		5,865
Total loans	$	4,879,785	$	4,092,631

Summary of Changes in Allowance for Credit Losses

The following tables summarize changes in the allowance for credit losses applicable to each category of the loan portfolio:

	Allowance for Credit Losses By Category For the Three Months Ended March 31, 2015 and 2014
(unaudited, in thousands)	Commercial Real Estate- Land and Construction			Commercial Real Estate- Improved Property			Commercial & Industrial			Residential Real Estate			Home Equity			Consumer			Deposit Overdraft			Total
Balance at December 31, 2014:
Allowance for loan losses	$	5,654		$	17,573		$	9,063		$	5,382		$	2,329		$	4,078		$	575		$	44,654
Allowance for loan commitments		194			10			112			9			90			40			—			455
Total beginning allowance for credit losses		5,848			17,583			9,175			5,391			2,419			4,118			575			45,109
Provision for credit losses:
Provision for loan losses		(323	)		903			(44	)		(208	)		747			133			58			1,266
Provision for loan commitments		(16	)		8			8			4			17			2			—			23
Total provision for credit losses		(339	)		911			(36	)		(204	)		764			135			58			1,289
Charge-offs		—			(577	)		(122	)		(358	)		(589	)		(717	)		(154	)		(2,517	)
Recoveries		—			136			114			218			10			229			63			770
Net charge-offs		—			(441	)		(8	)		(140	)		(579	)		(488	)		(91	)		(1,747	)
Balance at March 31, 2015:
Allowance for loan losses		5,331			18,035			9,011			5,034			2,497			3,723			542			44,173
Allowance for loan commitments		178			18			120			13			107			42			—			478
Total ending allowance for credit losses	$	5,509		$	18,053		$	9,131		$	5,047		$	2,604		$	3,765		$	542		$	44,651
Balance at December 31, 2013:
Allowance for loan losses	$	6,056		$	18,157		$	9,925		$	5,673		$	2,017		$	5,020		$	520		$	47,368
Allowance for loan commitments		301			62			130			5			85			19			—			602
Total beginning allowance for credit losses		6,357			18,219			10,055			5,678			2,102			5,039			520			47,970
Provision for credit losses:
Provision for loan losses		(1,051	)		(509	)		2,128			869			153			305			361			2,256
Provision for loan commitments		(8	)		(53	)		3			—			1			—			—			(57	)
Total provision for credit losses		(1,059	)		(562	)		2,131			869			154			305			361			2,199
Charge-offs		—			(493	)		(2,276	)		(879	)		(155	)		(752	)		(180	)		(4,735	)
Recoveries		—			120			65			109			11			227			62			594
Net charge-offs		—			(373	)		(2,211	)		(770	)		(144	)		(525	)		(118	)		(4,141	)
Balance at March 31, 2014:
Allowance for loan losses		5,005			17,275			9,842			5,772			2,026			4,800			763			45,483
Allowance for loan commitments		293			9			133			5			86			19			—			545
Total ending allowance for credit losses	$	5,298		$	17,284		$	9,975		$	5,777		$	2,112		$	4,819		$	763		$	46,028

Allowance for Credit Losses and Recorded Investments in Loans

The following tables present the allowance for credit losses and recorded investments in loans by category:

	Allowance for Credit Losses and Recorded Investment in Loans
(unaudited, in thousands)	Commercial Real Estate- Land and Construction		Commercial Real Estate- Improved Property		Commercial and Industrial		Residential Real Estate		Home Equity		Consumer		Over-draft		Total
March 31, 2015
Allowance for credit losses:
Allowance for loans individually evaluated for impairment	$	—	$	2,828	$	873	$	—	$	—	$	—	$	—	$	3,701
Allowance for loans collectively evaluated for impairment		5,331		15,207		8,138		5,034		2,497		3,723		542		40,472
Allowance for loan commitments		178		18		120		13		107		42		—		478
Total allowance for credit losses	$	5,509	$	18,053	$	9,131	$	5,047	$	2,604	$	3,765	$	542	$	44,651
Portfolio loans:
Individually evaluated for impairment (1)	$	—	$	9,822	$	2,722	$	—	$	—	$	—	$	—	$	12,544
Collectively evaluated for impairment		288,075		1,899,047		706,899		1,239,163		362,163		365,830		—		4,861,177
Total portfolio loans	$	288,075	$	1,908,869	$	709,621	$	1,239,163	$	362,163	$	365,830	$	—	$	4,873,721
December 31, 2014
Allowance for credit losses:
Allowance for loans individually evaluated for impairment	$	—	$	2,765	$	1,033	$	—	$	—	$	—	$	—	$	3,798
Allowance for loans collectively evaluated for impairment		5,654		14,808		8,030		5,382		2,329		4,078		575		40,856
Allowance for loan commitments		194		10		112		9		90		40		—		455
Total allowance for credit losses	$	5,848	$	17,583	$	9,175	$	5,391	$	2,419	$	4,118	$	575	$	45,109
Portfolio loans:
Individually evaluated for impairment (1)	$	—	$	11,469	$	2,844	$	—	$	—	$	—	$	—	$	14,313
Collectively evaluated for impairment		262,643		1,671,348		635,566		928,770		330,031		244,095		—		4,072,453
Total portfolio loans	$	262,643	$	1,682,817	$	638,410	$	928,770	$	330,031	$	244,095	$	—	$	4,086,766

⁽¹⁾  Commercial loans greater than $1 million that are reported as non-accrual or as a troubled debt restructuring (“TDR”) are individually evaluated for impairment.

Summary of Commercial Loans by Risk Grade

The following tables summarize commercial loans by their assigned risk grade:

	Commerical Loans by Internally Assigned Risk Grade
(unaudited, in thousands)	Commercial Real Estate- Land and Construction		Commercial Real Estate- Improved Property		Commercial & Industrial		Total Commercial Loans
As of March 31, 2015
Pass	$	281,730	$	1,848,655	$	683,226	$	2,813,611
Criticized - compromised		3,653		18,049		18,957		40,659
Classified - substandard		2,692		42,165		7,438		52,295
Classified - doubtful		—		—		—		—
Total	$	288,075	$	1,908,869	$	709,621	$	2,906,565
As of December 31, 2014
Pass	$	257,218	$	1,627,771	$	617,742	$	2,502,731
Criticized - compromised		3,645		17,873		12,770		34,288
Classified - substandard		1,780		37,173		7,898		46,851
Classified - doubtful		—		—		—		—
Total	$	262,643	$	1,682,817	$	638,410	$	2,583,870

Summary of Age Analysis of Loan Categories

The following tables summarize the age analysis of all categories of loans:

	Age Analysis of Loans
(unaudited, in thousands)	Current		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Total Loans		90 Days or More Past Due and Accruing (1)
As of March 31, 2015
Commercial real estate:
Land and construction	$	286,883	$	—	$	—	$	1,192	$	1,192	$	288,075	$	—
Improved property		1,889,451		1,093		1,435		16,890		19,418		1,908,869		—
Total commercial real estate		2,176,334		1,093		1,435		18,082		20,610		2,196,944		—
Commercial and industrial		705,380		916		1,518		1,807		4,241		709,621		3
Residential real estate		1,226,131		4,981		1,673		6,378		13,032		1,239,163		74
Home equity		357,545		1,982		508		2,128		4,618		362,163		684
Consumer		362,338		2,117		868		507		3,492		365,830		270
Total portfolio loans		4,827,728		11,089		6,002		28,902		45,993		4,873,721		1,031
Loans held for sale		6,064		—		—		—		—		6,064		—
Total loans	$	4,833,792	$	11,089	$	6,002	$	28,902	$	45,993	$	4,879,785	$	1,031
Impaired loans included above are as follows:
Non-accrual loans	$	9,209	$	2,008	$	2,319	$	27,838	$	32,165	$	41,374
TDRs accruing interest (1)		16,536		582		179		33		794		17,330
Total impaired	$	25,745	$	2,590	$	2,498	$	27,871	$	32,959	$	58,704
As of December 31, 2014
Commercial real estate:
Land and construction	$	261,356	$	20	$	—	$	1,267	$	1,287	$	262,643	$	71
Improved property		1,665,363		961		4,772		11,721		17,454		1,682,817		—
Total commercial real estate		1,926,719		981		4,772		12,988		18,741		1,945,460		71
Commercial and industrial		634,482		1,834		240		1,854		3,928		638,410		22
Residential real estate		915,968		1,237		3,384		8,181		12,802		928,770		1,306
Home equity		325,291		1,877		895		1,968		4,740		330,031		570
Consumer		240,365		2,571		685		474		3,730		244,095		319
Total portfolio loans		4,042,825		8,500		9,976		25,465		43,941		4,086,766		2,288
Loans held for sale		5,865		—		—		—		—		5,865		—
Total loans	$	4,048,690	$	8,500	$	9,976	$	25,465	$	43,941	$	4,092,631	$	2,288
Impaired loans included above are as follows:
Non-accrual loans	$	7,562	$	2,884	$	5,552	$	22,820	$	31,256	$	38,818
TDRs accruing interest (1)		11,016		151		542		357		1,050		12,066
Total impaired	$	18,578	$	3,035	$	6,094	$	23,177	$	32,306	$	50,884

⁽¹⁾ Loans 90 days or more past due and accruing interest exclude TDRs 90 days or more past due and accruing interest.

Summary of Impaired Loans

The following tables summarize impaired loans:

	Impaired Loans
	March 31, 2015						December 31, 2014
(unaudited, in thousands)	Unpaid Principal Balance (1)		Recorded Investment		Related Allowance		Unpaid Principal Balance (1)		Recorded Investment		Related Allowance
With no related specific allowance recorded:
Commercial real estate:
Land and construction	$	3,101	$	2,476	$	—	$	1,588	$	1,488	$	—
Improved property		30,138		22,481		—		16,480		14,684		—
Commercial and industrial		3,094		2,432		—		3,152		2,597		—
Residential real estate		20,943		19,132		—		20,077		18,544		—
Home equity		2,824		2,617		—		2,890		2,663		—
Consumer		1,659		1,332		—		1,287		1,086		—
Total impaired loans without a specific allowance		61,759		50,470		—		45,474		41,062		—
With a specific allowance recorded:
Commercial real estate:
Land and construction		—		—		—		—		—		—
Improved property		6,466		6,466		2,828		7,980		7,980		2,765
Commercial and industrial		1,768		1,768		873		1,842		1,842		1,033
Total impaired loans with a specific allowance		8,234		8,234		3,701		9,822		9,822		3,798
Total impaired loans	$	69,993	$	58,704	$	3,701	$	55,296	$	50,884	$	3,798

⁽¹⁾ The difference between the unpaid principal balance and the recorded investment generally reflects amounts that have been previously charged-off and fair market value adjustments on acquired impaired loans.

	Impaired Loans
	For the Three Months Ended March 31, 2015				For the Three Months Ended March 31, 2014
(unaudited, in thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related specific allowance recorded:
Commercial real estate:
Land and construction	$	2,128	$	16	$	2,450	$	2
Improved property		18,932		223		19,158		20
Commercial and industrial		2,513		13		3,532		32
Residential real estate		18,715		230		19,463		182
Home equity		2,641		20		2,367		19
Consumer		1,194		20		1,174		28
Total impaired loans without a specific allowance		46,123		522		48,144		283
With a specific allowance recorded:
Commercial real estate:
Land and construction		—		—		—		—
Improved property		7,223		—		729		1
Commercial and industrial		1,805		19		2,329		12
Total impaired loans with a specific allowance		9,028		19		3,058		13
Total impaired loans	$	55,151	$	541	$	51,202	$	296

Recorded Investment in Non-Accrual Loans and TDRs

The following tables present the recorded investment in non-accrual loans and TDRs:

	Non-accrual Loans (1)
(unaudited, in thousands)	March 31, 2015		December 31, 2014
Commercial real estate:
Land and construction	$	1,463	$	1,488
Improved property		22,143		20,227
Total commercial real estate		23,606		21,715
Commercial and industrial		3,849		4,110
Residential real estate		11,249		10,329
Home equity		1,899		1,923
Consumer		771		741
Total	$	41,374	$	38,818

⁽¹⁾  Total non-accrual loans include loans that are also restructured. Such loans are also set forth in the following table as non-accrual TDRs.

	TDRs
	March 31, 2015						December 31, 2014
(unaudited, in thousands)	Accruing		Non-Accrual		Total		Accruing		Non-Accrual		Total
Commercial real estate:
Land and construction	$	1,013	$	504	$	1,517	$	—	$	464	$	464
Improved property		6,804		5,399		12,203		2,437		1,850		4,287
Total commercial real estate		7,817		5,903		13,720		2,437		2,314		4,751
Commercial and industrial		351		376		727		329		478		807
Residential real estate		7,883		2,386		10,269		8,215		2,074		10,289
Home equity		718		285		1,003		740		245		985
Consumer		561		274		835		345		309		654
Total	$	17,330	$	9,224	$	26,554	$	12,066	$	5,420	$	17,486

Loans Identified as TDRs

The following table presents details related to loans identified as TDRs during the three months ended March 31, 2015 and 2014, respectively:

	New TDRs (1) For the Three Months Ended
	March 31, 2015						March 31, 2014
(unaudited, dollars in thousands)	Number of Modifications		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Modifications		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial real estate:
Land and construction		11	$	1,414	$	1,056		—	$	—	$	—
Improved Property		7		8,568		8,289		1		91		90
Total commercial real estate		18		9,982		9,345		1		91		90
Commercial and industrial		2		42		57		—		—		—
Residential real estate		7		424		421		4		121		118
Home equity		1		7		6		—		—		—
Consumer		21		269		303		2		33		31
Total		49	$	10,724	$	10,132		7	$	245	$	239

⁽¹⁾  Excludes loans that were either paid off or charged-off by period end. The pre-modification balance represents the balance outstanding at the beginning of the period. The post-modification balance represents the outstanding balance at period end.

TDRs Defaulted Later Restructured

The following table summarizes TDRs which defaulted (defined as past due 90 days) during the three months ended March 31, 2015 and 2014, respectively, that were restructured within the last twelve months prior to March 31, 2015 and 2014, respectively:

	Defaulted TDRs (1) For the Three Months Ended				Defaulted TDRs (1) For the Three Months Ended
	March 31, 2015				March 31, 2014
(unaudited, dollars in thousands)	Number of Defaults		Recorded Investment		Number of Defaults		Recorded Investment
Commercial real estate:
Land and construction		—	$	—		—	$	—
Improved property		—		—		—		—
Total commercial real estate		—		—		—		—
Commercial and industrial		—		—		—		—
Residential real estate		—		—		8		481
Home equity		1		42		1		3
Consumer		1		27		—		—
Total		2	$	69		9	$	484

⁽¹⁾  Excludes loans that were either charged-off or cured by period end. The recorded investment is as of March 31, 2014 and 2013, respectively.

Summary of Other Real Estate Owned and Repossessed Assets

The following table summarizes other real estate owned and repossessed assets included in other assets:

(unaudited, in thousands)	March 31, 2015		December 31, 2014
Other real estate owned	$	5,886	$	4,920
Repossessed assets		340		162
Total other real estate owned and repossessed assets	$	6,226	$	5,082