Loans and the Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2016

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 and discounts on purchased loans. The deferred loan fees and costs were $0.3 million and $1.0 million at December 31, 2016 and 2015, respectively. The discounts on purchased loans from acquisitions were $24.1 million, including $11.0 million related to YCB, and $15.7 million at December 31, 2016 and 2015, respectively.

	December 31,		December 31,
(in thousands)	2016		2015
Commercial real estate:
Land and construction	$	496,539	$	344,748
Improved property		2,376,972		1,911,633
Total commercial real estate		2,873,511		2,256,381
Commercial and industrial		1,088,118		737,878
Residential real estate		1,383,390		1,247,800
Home equity		508,359		416,889
Consumer		396,058		406,894
Total portfolio loans		6,249,436		5,065,842
Loans held for sale		17,315		7,899
Total loans	$	6,266,751	$	5,073,741

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:

	For the Year Ended December 31, 2016
(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 beginning of year:
Allowance for loan losses	$	4,390		$	14,748		$	10,002		$	4,582		$	2,883		$	4,763		$	342		$	41,710
Allowance for loan commitments		157			26			260			7			117			46			—			613
Total beginning allowance for credit losses		4,547			14,774			10,262			4,589			3,000			4,809			342			42,323
Provision for credit losses:
Provision for loan losses		26			4,223			1,160			16			662			1,356			1,077			8,520
Provision for loan commitments		(6	)		(9	)		(72	)		2			45			(2	)		—			(42	)
Total provision for credit losses		20			4,214			1,088			18			707			1,354			1,077			8,478
Charge-offs		(73	)		(1,886	)		(3,070	)		(937	)		(397	)		(3,606	)		(884	)		(10,853	)
Recoveries		5			1,543			320			445			274			1,485			225			4,297
Net charge-offs		(68	)		(343	)		(2,750	)		(492	)		(123	)		(2,121	)		(659	)		(6,556	)
Balance at end of period:
Allowance for loan losses		4,348			18,628			8,412			4,106			3,422			3,998			760			43,674
Allowance for loan commitments		151			17			188			9			162			44			—			571
Total ending allowance for credit losses	$	4,499		$	18,645		$	8,600		$	4,115		$	3,584		$	4,042		$	760		$	44,245

	For the Year Ended December 31, 2015
(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 beginning of year:
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		(1,265	)		1,250			3,289			399			1,794			2,337			391			8,195
Provision for loan commitments		(37	)		16			148			(2	)		27			6			—			158
Total provision for credit losses		(1,302	)		1,266			3,437			397			1,821			2,343			391			8,353
Charge-offs		—			(4,915	)		(2,785	)		(1,803	)		(1,502	)		(2,892	)		(846	)		(14,743	)
Recoveries		1			840			435			604			262			1,240			222			3,604
Net charge-offs		1			(4,075	)		(2,350	)		(1,199	)		(1,240	)		(1,652	)		(624	)		(11,139	)
Balance at end of period:
Allowance for loan losses		4,390			14,748			10,002			4,582			2,883			4,763			342			41,710
Allowance for loan commitments		157			26			260			7			117			46			—			613
Total ending allowance for credit losses	$	4,547		$	14,774		$	10,262		$	4,589		$	3,000		$	4,809		$	342		$	42,323

	For the Year Ended December 31, 2014
(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 beginning of year:
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		(402	)		1,239			1,429			1,692			849			1,144			601			6,552
Provision for loan commitments		(107	)		(52	)		(18	)		4			5			21			—			(147	)
Total provision for credit losses		(509	)		1,187			1,411			1,696			854			1,165			601			6,405
Charge-offs		—			(2,426	)		(3,485	)		(2,437	)		(652	)		(3,120	)		(779	)		(12,899	)
Recoveries		—			603			1,194			454			115			1,034			233			3,633
Net charge-offs		—			(1,823	)		(2,291	)		(1,983	)		(537	)		(2,086	)		(546	)		(9,266	)
Balance at end of period:
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 ending allowance for credit losses	$	5,848		$	17,583		$	9,175		$	5,391		$	2,419		$	4,118		$	575		$	45,109

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
(in thousands)	Commercial Real Estate- Land and Construction		Commercial Real Estate- Improved Property		Commercial and Industrial		Residential Real Estate		Home Equity		Consumer		Deposit Over- draft		Total
December 31, 2016
Allowance for credit losses:
Allowance for loans individually evaluated for impairment	$	—	$	470	$	407	$	—	$	—	$	—	$	—	$	877
Allowance for loans collectively evaluated for impairment		4,348		18,158		8,005		4,106		3,422		3,998		760		42,797
Allowance for loan commitments		151		17		188		9		162		44		—		571
Total allowance for credit losses	$	4,499	$	18,645	$	8,600	$	4,115	$	3,584	$	4,042	$	760	$	44,245
Portfolio loans:
Individually evaluated for impairment (1)	$	—	$	3,012	$	1,270	$	—	$	—	$	—	$	—	$	4,282
Collectively evaluated for impairment		494,928		2,364,067		1,086,445		1,382,447		508,359		396,049		—		6,232,295
Acquired with deteriorated credit quality		1,611		9,893		403		943		—		9		—		12,859
Total portfolio loans	$	496,539	$	2,376,972	$	1,088,118	$	1,383,390	$	508,359	$	396,058	$	—	$	6,249,436
December 31, 2015
Allowance for credit losses:
Allowance for loans individually evaluated for impairment	$	—	$	668	$	853	$	—	$	—	$	—	$	—	$	1,521
Allowance for loans collectively evaluated for impairment		4,390		14,080		9,149		4,582		2,883		4,763		342		40,189
Allowance for loan commitments		157		26		260		7		117		46		—		613
Total allowance for credit losses	$	4,547	$	14,774	$	10,262	$	4,589	$	3,000	$	4,809	$	342	$	42,323
Portfolio loans:
Individually evaluated for impairment (1)	$	—	$	4,031	$	4,872	$	—	$	—	$	—	$	—	$	8,903
Collectively evaluated for impairment		343,832		1,899,738		732,957		1,247,639		416,862		406,622		—		5,047,650
Acquired with deteriorated credit quality		916		7,864		49		161		27		272		—		9,289
Total portfolio loans	$	344,748	$	1,911,633	$	737,878	$	1,247,800	$	416,889	$	406,894	$	—	$	5,065,842

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

Summary of Commercial Loans by Risk Grade

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

	Commercial Loans by Internally Assigned Risk Grade
(in thousands)	Commercial Real Estate- Land and Construction		Commercial Real Estate- Improved Property		Commercial & Industrial		Total Commercial Loans
As of December 31, 2016
Pass	$	489,380	$	2,324,755	$	1,072,751	$	3,886,886
Criticized—compromised		4,405		15,295		5,078		24,778
Classified—substandard		2,754		36,922		10,289		49,965
Classified—doubtful		—		—		—		—
Total	$	496,539	$	2,376,972	$	1,088,118	$	3,961,629
As of December 31, 2015
Pass	$	335,989	$	1,864,986	$	713,578	$	2,914,553
Criticized—compromised		5,527		10,911		9,860		26,298
Classified—substandard		3,232		35,736		14,440		53,408
Classified—doubtful		—		—		—		—
Total	$	344,748	$	1,911,633	$	737,878	$	2,994,259

Summary of Changes in Accretable Yield for Loans Acquired with Deteriorated Credit Quality

The following table provides changes in accretable yield for all loans acquired with deteriorated credit quality:

	For the Years Ended
(in thousands)	December 31, 2016			December 31, 2015
Balance at beginning of period	$	1,206		$	—
Acquisitions		837			1,815
Reduction due to change in projected cash flows		(484	)		—
Reclass from non-accretable difference		1,065			—
Transfers out		(328	)		—
Accretion		(579	)		(609	)
Balance at end of period	$	1,717		$	1,206

Summary of Age Analysis of Loan Categories

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

	Age Analysis of Loans
(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 December 31, 2016
Commercial real estate:
Land and construction	$	496,245	$	—	$	—	$	294	$	294	$	496,539	$	—
Improved property		2,367,790		1,154		363		7,665		9,182		2,376,972		318
Total commercial real estate		2,864,035		1,154		363		7,959		9,476		2,873,511		318
Commercial and industrial		1,082,390		2,508		1,011		2,209		5,728		1,088,118		229
Residential real estate		1,365,956		6,701		1,043		9,690		17,434		1,383,390		1,922
Home equity		502,087		2,358		862		3,052		6,272		508,359		626
Consumer		390,354		3,674		1,149		881		5,704		396,058		644
Total portfolio loans		6,204,822		16,395		4,428		23,791		44,614		6,249,436		3,739
Loans held for sale		17,315		—		—		—		—		17,315		—
Total loans	$	6,222,137	$	16,395	$	4,428	$	23,791	$	44,614	$	6,266,751	$	3,739
Impaired loans included above are as follows:
Non-accrual loans	$	7,570	$	3,479	$	923	$	19,812		24,214	$	31,784
TDRs accruing interest (1)		7,014		342		50		240		632		7,646
Total impaired	$	14,584	$	3,821	$	973	$	20,052	$	24,846	$	39,430
As of December 31, 2015
Commercial real estate:
Land and construction	$	344,184	$	—	$	—	$	564	$	564	$	344,748	$	—
Improved property		1,901,466		909		1,097		8,161		10,167		1,911,633		—
Total commercial real estate		2,245,650		909		1,097		8,725		10,731		2,256,381		—
Commercial and industrial		734,660		298		714		2,206		3,218		737,878		33
Residential real estate		1,234,839		1,389		2,871		8,701		12,961		1,247,800		2,159
Home equity		412,450		2,252		314		1,873		4,439		416,889		407
Consumer		401,242		4,115		764		773		5,652		406,894		527
Total portfolio loans		5,028,841		8,963		5,760		22,278		37,001		5,065,842		3,126
Loans held for sale		7,899		—		—		—		—		7,899		—
Total loans	$	5,036,740	$	8,963	$	5,760	$	22,278	$	37,001	$	5,073,741	$	3,126
Impaired loans included above are as follows:
Non-accrual loans	$	11,349	$	943	$	2,147	$	18,942	$	22,032	$	33,381
TDRs accruing interest (1)		10,710		390		238		210		838		11,548
Total impaired	$	22,059	$	1,333	$	2,385	$	19,152	$	22,870	$	44,929

(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
	December 31, 2016						December 31, 2015
(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	$	1,212	$	766	$	—	$	2,126	$	1,990	$	—
Improved property		9,826		8,141		—		14,817		10,559		—
Commercial and industrial		4,456		3,181		—		4,263		3,481		—
Residential real estate		20,152		18,305		—		18,560		16,688		—
Home equity		4,589		4,011		—		3,562		3,033		—
Consumer		884		744		—		1,603		1,294		—
Total impaired loans without a specific allowance		41,119		35,148		—		44,931		37,045		—
With a specific allowance recorded:
Commercial real estate:
Land and construction		—		—		—		—		—		—
Improved property		3,012		3,012		470		3,012		3,012		668
Commercial and industrial		4,875		1,270		407		6,176		4,872		853
Total impaired loans with a specific allowance		7,887		4,282		877		9,188		7,884		1,521
Total impaired loans	$	49,006	$	39,430	$	877	$	54,119	$	44,929	$	1,521

(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 Year Ended December 31, 2016				For the Year Ended December 31, 2015				For the Year Ended December 31, 2014
(in thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related specific allowance recorded:
Commercial real estate:
Land and construction	$	993	$	—	$	2,156	$	41	$	1,977	$	35
Improved property		9,128		115		17,192		437		17,669		441
Commercial and industrial		3,188		9		2,979		170		3,561		103
Residential real estate		17,021		308		17,876		862		18,829		855
Home equity		3,502		20		2,924		90		2,356		75
Consumer		909		8		1,199		105		1,122		97
Total impaired loans without a specific allowance		34,741		460		44,326		1,705		45,514		1,606
With a specific allowance recorded:
Commercial real estate:
Land and construction		—		—		—		—		—		—
Improved property		3,012		—		5,896		—		2,795		348
Commercial and industrial		3,214		—		3,579		292		2,075		95
Total impaired loans with a specific allowance		6,226		—		9,475		292		4,870		443
Total impaired loans	$	40,967	$	460	$	53,801	$	1,997	$	50,384	$	2,049

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)
(in thousands)	December 31, 2016		December 31, 2015
Commercial real estate:
Land and construction	$	766	$	1,023
Improved property		9,535		11,507
Total commercial real estate		10,301		12,530
Commercial and industrial		4,299		8,148
Residential real estate		12,994		9,461
Home equity		3,538		2,391
Consumer		652		851
Total	$	31,784	$	33,381

(1) At December 31, 2016, there were two borrowers with loans greater than $1.0 million totaling $4.3 million. 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
	December 31, 2016						December 31, 2015
(in thousands)	Accruing		Non-Accrual		Total		Accruing		Non-Accrual		Total
Commercial real estate:
Land and construction	$	—	$	8	$	8	$	967	$	431	$	1,398
Improved property		1,618		688		2,306		2,064		1,442		3,506
Total commercial real estate		1,618		696		2,314		3,031		1,873		4,904
Commercial and industrial		152		151		303		205		282		487
Residential real estate		5,311		2,212		7,523		7,227		2,060		9,287
Home equity		473		297		770		642		218		860
Consumer		92		190		282		443		184		627
Total	$	7,646	$	3,546	$	11,192	$	11,548	$	4,617	$	16,165

Loans Identified as TDRs

The following table presents details related to loans identified as TDRs during the years ended December 31, 2016 and 2015:

	New TDRs (1) For the Year Ended December 31, 2016						New TDRs (1) For the Year Ended December 31, 2015
(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		—	$	—	$	—		3	$	128	$	115
Improved property		—		—		—		5		1,084		603
Total commercial real estate		—		—		—		8		1,212		718
Commercial and industrial		2		125		120		1		57		43
Residential real estate		4		178		166		7		456		426
Home equity		1		44		40		1		7		6
Consumer		14		98		74		7		69		58
Total		21	$	445	$	400		24	$	1,801	$	1,251

(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 years ended December 31, 2016 and 2015 that were restructured within the last twelve months prior to December 31, 2016 and 2015:

	Defaulted TDRs (1) For the Year Ended December 31, 2016				Defaulted TDRs (1) For the Year Ended December 31, 2015
(dollars in thousands)	Number of Defaults		Recorded Investment		Number of Defaults		Recorded Investment
Commercial real estate:
Land and construction		—	$	—		—	$	—
Improved property		—		—		2		370
Total commercial real estate		—		—		2		370
Commercial and industrial		—		—		—		—
Residential real estate		—		—		1		22
Home equity		—		—		—		—
Consumer		1		16		—		—
Total		1	$	16		3	$	392

(1) Excludes loans that were either charged-off or cured by period end. The recorded investment is as of December 31, 2016 and 2015.

Recognition of Interest Income on Impaired Loans

The following table summarizes the recognition of interest income on impaired loans:

	For the years ended December 31,
(in thousands)	2016		2015		2014
Average impaired loans	$	40,967	$	53,801	$	50,384
Amount of contractual interest income on impaired loans		2,747		3,061		3,260
Amount of interest income recognized on impaired loans		460		1,997		2,049

Summary of Other Real Estate Owned and Repossessed Assets

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

	December 31,
(in thousands)	2016		2015
Other real estate owned	$	8,206	$	5,669
Repossessed assets		140		156
Total other real estate owned and repossessed assets	$	8,346	$	5,825