XML 36 R26.htm IDEA: XBRL DOCUMENT v3.19.2
Loans and the Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2019
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. Net deferred loan costs were $4.2 million and $3.2 million at June 30, 2019 and December 31, 2018, respectively. The unamortized discount on purchased loans from acquisitions was $40.1 million at June 30, 2019, including $19.0 million related to FFKT, and $49.3 million at December 31, 2018.

 

 

June 30,

 

 

December 31,

 

(unaudited, in thousands)

 

2019

 

 

2018

 

Commercial real estate:

 

 

 

 

 

 

 

 

Land and construction

 

$

483,046

 

 

$

528,072

 

Improved property

 

 

3,394,587

 

 

 

3,325,623

 

Total commercial real estate

 

 

3,877,633

 

 

 

3,853,695

 

Commercial and industrial

 

 

1,300,577

 

 

 

1,265,460

 

Residential real estate

 

 

1,633,613

 

 

 

1,611,607

 

Home equity

 

 

590,303

 

 

 

599,331

 

Consumer

 

 

335,728

 

 

 

326,188

 

Total portfolio loans

 

 

7,737,854

 

 

 

7,656,281

 

Loans held for sale

 

 

18,649

 

 

 

8,994

 

Total loans

 

$

7,756,503

 

 

$

7,665,275

 

 
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 Six Months Ended June 30, 2019 and 2018

 

(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, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 

$

4,039

 

 

$

20,848

 

 

$

12,114

 

 

$

3,822

 

 

$

4,356

 

 

$

2,797

 

 

$

972

 

 

$

48,948

 

Allowance for loan commitments

 

 

169

 

 

 

33

 

 

 

262

 

 

 

12

 

 

 

226

 

 

 

39

 

 

 

—

 

 

 

741

 

Total beginning allowance for credit losses

 

 

4,208

 

 

 

20,881

 

 

 

12,376

 

 

 

3,834

 

 

 

4,582

 

 

 

2,836

 

 

 

972

 

 

 

49,689

 

Provision for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

 

(538

)

 

 

1,459

 

 

 

1,309

 

 

 

124

 

 

 

423

 

 

 

333

 

 

 

1,119

 

 

 

4,229

 

Provision for loan commitments

 

 

18

 

 

 

(9

)

 

 

995

 

 

 

1

 

 

 

23

 

 

 

(3

)

 

 

—

 

 

 

1,025

 

Total provision for credit losses

 

 

(520

)

 

 

1,450

 

 

 

2,304

 

 

 

125

 

 

 

446

 

 

 

330

 

 

 

1,119

 

 

 

5,254

 

Charge-offs

 

 

—

 

 

 

(285

)

 

 

(1,025

)

 

 

(679

)

 

 

(673

)

 

 

(1,344

)

 

 

(860

)

 

 

(4,866

)

Recoveries

 

 

200

 

 

 

345

 

 

 

489

 

 

 

188

 

 

 

215

 

 

 

896

 

 

 

215

 

 

 

2,548

 

Net charge-offs

 

 

200

 

 

 

60

 

 

 

(536

)

 

 

(491

)

 

 

(458

)

 

 

(448

)

 

 

(645

)

 

 

(2,318

)

Balance at June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 

 

3,701

 

 

 

22,367

 

 

 

12,887

 

 

 

3,455

 

 

 

4,321

 

 

 

2,682

 

 

 

1,446

 

 

 

50,859

 

Allowance for loan commitments

 

 

187

 

 

 

24

 

 

 

1,257

 

 

 

13

 

 

 

249

 

 

 

36

 

 

 

—

 

 

 

1,766

 

Total ending allowance for credit losses

 

$

3,888

 

 

$

22,391

 

 

$

14,144

 

 

$

3,468

 

 

$

4,570

 

 

$

2,718

 

 

$

1,446

 

 

$

52,625

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 

$

3,117

 

 

$

21,166

 

 

$

9,414

 

 

$

3,206

 

 

$

4,497

 

 

$

3,063

 

 

$

821

 

 

$

45,284

 

Allowance for loan commitments

 

 

119

 

 

 

26

 

 

 

173

 

 

 

7

 

 

 

212

 

 

 

37

 

 

 

—

 

 

 

574

 

Total beginning allowance for credit losses

 

 

3,236

 

 

 

21,192

 

 

 

9,587

 

 

 

3,213

 

 

 

4,709

 

 

 

3,100

 

 

 

821

 

 

 

45,858

 

Provision for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

 

1,465

 

 

 

(1,774

)

 

 

2,100

 

 

 

944

 

 

 

54

 

 

 

615

 

 

 

439

 

 

 

3,843

 

Provision for loan commitments

 

 

44

 

 

 

(8

)

 

 

2

 

 

 

2

 

 

 

(7

)

 

 

—

 

 

 

—

 

 

 

33

 

Total provision for credit losses

 

 

1,509

 

 

 

(1,782

)

 

 

2,102

 

 

 

946

 

 

 

47

 

 

 

615

 

 

 

439

 

 

 

3,876

 

Charge-offs

 

 

(136

)

 

 

(692

)

 

 

(616

)

 

 

(509

)

 

 

(672

)

 

 

(1,793

)

 

 

(541

)

 

 

(4,959

)

Recoveries

 

 

264

 

 

 

776

 

 

 

636

 

 

 

252

 

 

 

279

 

 

 

1,066

 

 

 

197

 

 

 

3,470

 

Net charge-offs

 

 

128

 

 

 

84

 

 

 

20

 

 

 

(257

)

 

 

(393

)

 

 

(727

)

 

 

(344

)

 

 

(1,489

)

Balance at June 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 

 

4,710

 

 

 

19,476

 

 

 

11,534

 

 

 

3,893

 

 

 

4,158

 

 

 

2,951

 

 

 

916

 

 

 

47,638

 

Allowance for loan commitments

 

 

163

 

 

 

18

 

 

 

175

 

 

 

9

 

 

 

205

 

 

 

37

 

 

 

—

 

 

 

607

 

Total ending allowance for credit losses

 

$

4,873

 

 

$

19,494

 

 

$

11,709

 

 

$

3,902

 

 

$

4,363

 

 

$

2,988

 

 

$

916

 

 

$

48,245

 

 
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

 

 

Deposit

Over-

draft

 

 

Total

 

June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loans individually

   evaluated for impairment

 

$

—

 

 

$

1,479

 

 

$

11

 

 

$

12

 

 

$

8

 

 

$

1

 

 

$

—

 

 

$

1,511

 

Allowance for loans collectively

   evaluated for impairment

 

 

3,701

 

 

 

20,888

 

 

 

12,876

 

 

 

3,443

 

 

 

4,313

 

 

 

2,681

 

 

 

1,446

 

 

 

49,348

 

Allowance for loan commitments

 

 

187

 

 

 

24

 

 

 

1,257

 

 

 

13

 

 

 

249

 

 

 

36

 

 

 

—

 

 

 

1,766

 

Total allowance for credit losses

 

$

3,888

 

 

$

22,391

 

 

$

14,144

 

 

$

3,468

 

 

$

4,570

 

 

$

2,718

 

 

$

1,446

 

 

$

52,625

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for

   impairment (1)

 

$

—

 

 

$

5,157

 

 

$

192

 

 

$

4,922

 

 

$

922

 

 

$

74

 

 

$

—

 

 

$

11,267

 

Collectively evaluated for

   impairment

 

 

482,804

 

 

 

3,381,541

 

 

 

1,299,528

 

 

 

1,627,047

 

 

 

589,381

 

 

 

335,654

 

 

 

—

 

 

 

7,715,955

 

Acquired with deteriorated credit

   quality

 

 

242

 

 

 

7,889

 

 

 

857

 

 

 

1,644

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10,632

 

Total portfolio loans

 

$

483,046

 

 

$

3,394,587

 

 

$

1,300,577

 

 

$

1,633,613

 

 

$

590,303

 

 

$

335,728

 

 

$

—

 

 

$

7,737,854

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loans individually

   evaluated for impairment

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Allowance for loans collectively

   evaluated for impairment

 

 

4,039

 

 

 

20,848

 

 

 

12,114

 

 

 

3,822

 

 

 

4,356

 

 

 

2,797

 

 

 

972

 

 

 

48,948

 

Allowance for loan commitments

 

 

169

 

 

 

33

 

 

 

262

 

 

 

12

 

 

 

226

 

 

 

39

 

 

 

—

 

 

 

741

 

Total allowance for credit losses

 

$

4,208

 

 

$

20,881

 

 

$

12,376

 

 

$

3,834

 

 

$

4,582

 

 

$

2,836

 

 

$

972

 

 

$

49,689

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for

   impairment (1)

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Collectively evaluated for

   impairment

 

 

527,737

 

 

 

3,319,672

 

 

 

1,264,560

 

 

 

1,609,177

 

 

 

599,331

 

 

 

326,063

 

 

 

—

 

 

 

7,646,540

 

Acquired with deteriorated credit

   quality

 

 

335

 

 

 

5,951

 

 

 

900

 

 

 

2,430

 

 

 

—

 

 

 

125

 

 

 

—

 

 

 

9,741

 

Total portfolio loans

 

$

528,072

 

 

$

3,325,623

 

 

$

1,265,460

 

 

$

1,611,607

 

 

$

599,331

 

 

$

326,188

 

 

$

—

 

 

$

7,656,281

 

(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

 

(unaudited, in thousands)

 

Commercial

Real Estate-

Land and

Construction

 

 

Commercial

Real Estate-

Improved

Property

 

 

Commercial

& Industrial

 

 

Total

Commercial

Loans

 

As of June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

476,109

 

 

$

3,319,270

 

 

$

1,268,591

 

 

$

5,063,970

 

Criticized - compromised

 

 

5,794

 

 

 

52,657

 

 

 

14,785

 

 

 

73,236

 

Classified - substandard

 

 

1,143

 

 

 

22,660

 

 

 

17,201

 

 

 

41,004

 

Classified - doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

483,046

 

 

$

3,394,587

 

 

$

1,300,577

 

 

$

5,178,210

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

523,707

 

 

$

3,267,304

 

 

$

1,245,190

 

 

$

5,036,201

 

Criticized - compromised

 

 

2,297

 

 

 

35,566

 

 

 

13,847

 

 

 

51,710

 

Classified - substandard

 

 

2,068

 

 

 

22,753

 

 

 

6,423

 

 

 

31,244

 

Classified - doubtful

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

528,072

 

 

$

3,325,623

 

 

$

1,265,460

 

 

$

5,119,155

 

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

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

 

 

For the Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

(unaudited, in thousands)

 

2019

 

 

2018

 

Balance at beginning of period

 

$

6,203

 

 

$

1,724

 

Acquisitions

 

 

1,300

 

 

 

—

 

Reduction due to change in projected cash flows

 

 

(960

)

 

 

(86

)

Reclass from non-accretable difference

 

 

839

 

 

 

5,877

 

Transfers out

 

 

—

 

 

 

—

 

Accretion

 

 

(2,240

)

 

 

(440

)

Balance at end of period

 

$

5,142

 

 

$

7,075

 

 
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 June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land and construction

 

$

482,016

 

 

$

965

 

 

$

45

 

 

$

20

 

 

$

1,030

 

 

$

483,046

 

 

$

—

 

Improved property

 

 

3,382,311

 

 

 

2,297

 

 

 

1,486

 

 

 

8,493

 

 

 

12,276

 

 

 

3,394,587

 

 

 

587

 

Total commercial real estate

 

 

3,864,327

 

 

 

3,262

 

 

 

1,531

 

 

 

8,513

 

 

 

13,306

 

 

 

3,877,633

 

 

 

587

 

Commercial and industrial

 

 

1,296,878

 

 

 

922

 

 

 

142

 

 

 

2,635

 

 

 

3,699

 

 

 

1,300,577

 

 

 

97

 

Residential real estate

 

 

1,617,430

 

 

 

5,962

 

 

 

2,449

 

 

 

7,772

 

 

 

16,183

 

 

 

1,633,613

 

 

 

1,173

 

Home equity

 

 

584,058

 

 

 

2,073

 

 

 

412

 

 

 

3,760

 

 

 

6,245

 

 

 

590,303

 

 

 

533

 

Consumer

 

 

333,279

 

 

 

1,682

 

 

 

506

 

 

 

261

 

 

 

2,449

 

 

 

335,728

 

 

 

244

 

Total portfolio loans

 

 

7,695,972

 

 

 

13,901

 

 

 

5,040

 

 

 

22,941

 

 

 

41,882

 

 

 

7,737,854

 

 

 

2,634

 

Loans held for sale

 

 

18,649

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

18,649

 

 

 

—

 

Total loans

 

$

7,714,621

 

 

$

13,901

 

 

$

5,040

 

 

$

22,941

 

 

$

41,882

 

 

$

7,756,503

 

 

$

2,634

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans included above are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans

 

$

9,310

 

 

$

1,170

 

 

$

2,169

 

 

$

20,249

 

 

 

23,588

 

 

$

32,898

 

 

 

 

 

TDRs accruing interest (1)

 

 

5,273

 

 

 

10

 

 

 

146

 

 

 

58

 

 

 

214

 

 

 

5,487

 

 

 

 

 

Total impaired

 

$

14,583

 

 

$

1,180

 

 

$

2,315

 

 

$

20,307

 

 

$

23,802

 

 

$

38,385

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land and construction

 

$

526,660

 

 

$

62

 

 

$

1,350

 

 

$

—

 

 

$

1,412

 

 

$

528,072

 

 

$

—

 

Improved property

 

 

3,314,765

 

 

 

2,266

 

 

 

2,250

 

 

 

6,342

 

 

 

10,858

 

 

 

3,325,623

 

 

 

175

 

Total commercial real estate

 

 

3,841,425

 

 

 

2,328

 

 

 

3,600

 

 

 

6,342

 

 

 

12,270

 

 

 

3,853,695

 

 

 

175

 

Commercial and industrial

 

 

1,261,536

 

 

 

323

 

 

 

594

 

 

 

3,007

 

 

 

3,924

 

 

 

1,265,460

 

 

 

13

 

Residential real estate

 

 

1,593,519

 

 

 

2,717

 

 

 

5,001

 

 

 

10,370

 

 

 

18,088

 

 

 

1,611,607

 

 

 

2,820

 

Home equity

 

 

591,623

 

 

 

2,500

 

 

 

1,273

 

 

 

3,935

 

 

 

7,708

 

 

 

599,331

 

 

 

705

 

Consumer

 

 

322,584

 

 

 

2,084

 

 

 

1,007

 

 

 

513

 

 

 

3,604

 

 

 

326,188

 

 

 

364

 

Total portfolio loans

 

 

7,610,687

 

 

 

9,952

 

 

 

11,475

 

 

 

24,167

 

 

 

45,594

 

 

 

7,656,281

 

 

 

4,077

 

Loans held for sale

 

 

8,994

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

8,994

 

 

 

—

 

Total loans

 

$

7,619,681

 

 

$

9,952

 

 

$

11,475

 

 

$

24,167

 

 

$

45,594

 

 

$

7,665,275

 

 

$

4,077

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans included above are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans

 

$

8,910

 

 

$

337

 

 

$

1,370

 

 

$

20,083

 

 

 

21,790

 

 

$

30,700

 

 

 

 

 

TDRs accruing interest (1)

 

 

5,586

 

 

 

59

 

 

 

92

 

 

 

7

 

 

 

158

 

 

 

5,744

 

 

 

 

 

Total impaired

 

$

14,496

 

 

$

396

 

 

$

1,462

 

 

$

20,090

 

 

$

21,948

 

 

$

36,444

 

 

 

 

 

(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

 

 

 

June 30, 2019

 

 

December 31, 2018

 

 

 

Unpaid

 

 

 

 

 

 

 

 

 

 

Unpaid

 

 

 

 

 

 

 

 

 

 

 

Principal

 

 

Recorded

 

 

Related

 

 

Principal

 

 

Recorded

 

 

Related

 

(unaudited, in thousands)

 

Balance (1)

 

 

Investment

 

 

Allowance

 

 

Balance (1)

 

 

Investment

 

 

Allowance

 

With no related specific allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land and construction

 

$

347

 

 

$

295

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Improved property

 

 

13,499

 

 

 

7,312

 

 

 

—

 

 

 

14,038

 

 

 

9,293

 

 

 

—

 

Commercial and industrial

 

 

4,086

 

 

 

2,854

 

 

 

—

 

 

 

4,610

 

 

 

3,428

 

 

 

—

 

Residential real estate

 

 

13,572

 

 

 

11,896

 

 

 

—

 

 

 

20,270

 

 

 

18,016

 

 

 

—

 

Home equity

 

 

5,247

 

 

 

4,450

 

 

 

—

 

 

 

5,924

 

 

 

5,036

 

 

 

—

 

Consumer

 

 

416

 

 

 

311

 

 

 

—

 

 

 

846

 

 

 

671

 

 

 

—

 

Total impaired loans without a specific allowance

 

 

37,167

 

 

 

27,118

 

 

 

—

 

 

 

45,688

 

 

 

36,444

 

 

 

—

 

With a specific allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land and construction

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Improved property

 

 

5,211

 

 

 

5,157

 

 

 

1,479

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial and industrial

 

 

194

 

 

 

192

 

 

 

11

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential real estate

 

 

5,358

 

 

 

4,922

 

 

 

12

 

 

 

—

 

 

 

—

 

 

 

—

 

Home equity

 

 

990

 

 

 

922

 

 

 

8

 

 

 

—

 

 

 

—

 

 

 

—

 

Consumer

 

 

113

 

 

 

74

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

Total impaired loans with a specific allowance

 

 

11,866

 

 

 

11,267

 

 

 

1,511

 

 

 

—

 

 

 

—

 

 

 

—

 

Total impaired loans

 

$

49,033

 

 

$

38,385

 

 

$

1,511

 

 

$

45,688

 

 

$

36,444

 

 

$

—

 

(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

 

 

For the Six Months Ended

 

 

 

June 30, 2019

 

 

June 30, 2018

 

 

June 30, 2019

 

 

June 30, 2018

 

 

 

Average

 

 

Interest

 

 

Average

 

 

Interest

 

 

Average

 

 

Interest

 

 

Average

 

 

Interest

 

 

 

Recorded

 

 

Income

 

 

Recorded

 

 

Income

 

 

Recorded

 

 

Income

 

 

Recorded

 

 

Income

 

(unaudited, in thousands)

 

Investment

 

 

Recognized

 

 

Investment

 

 

Recognized

 

 

Investment

 

 

Recognized

 

 

Investment

 

 

Recognized

 

With no related specific allowance

   recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land and construction

 

$

290

 

 

$

—

 

 

$

400

 

 

$

—

 

 

$

193

 

 

$

—

 

 

$

346

 

 

$

—

 

Improved property

 

 

7,287

 

 

 

—

 

 

 

10,604

 

 

 

23

 

 

 

7,955

 

 

 

—

 

 

 

11,357

 

 

 

368

 

Commercial and industrial

 

 

2,961

 

 

 

—

 

 

 

3,036

 

 

 

2

 

 

 

3,116

 

 

 

—

 

 

 

3,008

 

 

 

4

 

Residential real estate

 

 

11,845

 

 

 

—

 

 

 

18,264

 

 

 

61

 

 

 

13,902

 

 

 

—

 

 

 

18,434

 

 

 

127

 

Home equity

 

 

4,487

 

 

 

—

 

 

 

5,068

 

 

 

6

 

 

 

4,670

 

 

 

—

 

 

 

5,098

 

 

 

11

 

Consumer

 

 

337

 

 

 

—

 

 

 

758

 

 

 

2

 

 

 

448

 

 

 

—

 

 

 

823

 

 

 

5

 

Total impaired loans without a specific

   allowance

 

 

27,207

 

 

 

—

 

 

 

38,130

 

 

 

94

 

 

 

30,284

 

 

 

—

 

 

 

39,066

 

 

 

515

 

With a specific allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land and construction

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Improved property

 

 

3,645

 

 

 

14

 

 

 

1,052

 

 

 

—

 

 

 

2,430

 

 

 

28

 

 

 

1,403

 

 

 

—

 

Commercial and industrial

 

 

250

 

 

 

4

 

 

 

—

 

 

 

—

 

 

 

166

 

 

 

7

 

 

 

—

 

 

 

—

 

Residential real estate

 

 

5,000

 

 

 

60

 

 

 

—

 

 

 

—

 

 

 

3,333

 

 

 

118

 

 

 

—

 

 

 

—

 

Home equity

 

 

859

 

 

 

7

 

 

 

—

 

 

 

—

 

 

 

573

 

 

 

15

 

 

 

—

 

 

 

—

 

Consumer

 

 

89

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

59

 

 

 

2

 

 

 

—

 

 

 

—

 

Total impaired loans with a specific allowance

 

 

9,843

 

 

 

86

 

 

 

1,052

 

 

 

—

 

 

 

6,561

 

 

 

170

 

 

 

1,403

 

 

 

—

 

Total impaired loans

 

$

37,050

 

 

$

86

 

 

$

39,182

 

 

$

94

 

 

$

36,845

 

 

$

170

 

 

$

40,469

 

 

$

515

 

 
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)

 

 

 

June 30,

 

 

December 31,

 

(unaudited, in thousands)

 

2019

 

 

2018

 

Commercial real estate:

 

 

 

 

 

 

 

 

Land and construction

 

$

295

 

 

$

—

 

Improved property

 

 

11,726

 

 

 

8,413

 

Total commercial real estate

 

 

12,021

 

 

 

8,413

 

Commercial and industrial

 

 

2,854

 

 

 

3,260

 

Residential real estate

 

 

12,813

 

 

 

13,831

 

Home equity

 

 

4,886

 

 

 

4,610

 

Consumer

 

 

324

 

 

 

586

 

Total

 

$

32,898

 

 

$

30,700

 

(1) At June 30, 2019, there were three borrowers with loans greater than $1.0 million totaling $8.2 million, as compared to one borrower with a loan greater than $1.0 million totaling $3.4 million at December 31, 2018.  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

 

 

 

June 30, 2019

 

 

December 31, 2018

 

(unaudited, in thousands)

 

Accruing

 

 

Non-Accrual

 

 

Total

 

 

Accruing

 

 

Non-Accrual

 

 

Total

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land and construction

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Improved property

 

 

743

 

 

 

558

 

 

 

1,301

 

 

 

880

 

 

 

1,529

 

 

 

2,409

 

Total commercial real estate

 

 

743

 

 

 

558

 

 

 

1,301

 

 

 

880

 

 

 

1,529

 

 

 

2,409

 

Commercial and industrial

 

 

192

 

 

 

—

 

 

 

192

 

 

 

168

 

 

 

169

 

 

 

337

 

Residential real estate

 

 

4,005

 

 

 

917

 

 

 

4,922

 

 

 

4,185

 

 

 

921

 

 

 

5,106

 

Home equity

 

 

486

 

 

 

436

 

 

 

922

 

 

 

426

 

 

 

198

 

 

 

624

 

Consumer

 

 

61

 

 

 

13

 

 

 

74

 

 

 

85

 

 

 

38

 

 

 

123

 

Total

 

$

5,487

 

 

$

1,924

 

 

$

7,411

 

 

$

5,744

 

 

$

2,855

 

 

$

8,599

 

 
Loans Identified as TDRs

The following tables present details related to loans identified as TDRs during the three and six months ended June 30, 2019 and 2018, respectively:

 

 

 

New TDRs (1)

 

 

 

For the Three Months Ended

 

 

 

June 30, 2019

 

 

June 30, 2018

 

 

 

 

 

 

 

Pre-

 

 

Post-

 

 

 

 

 

 

Pre-

 

 

Post-

 

 

 

 

 

 

 

Modification

 

 

Modification

 

 

 

 

 

 

Modification

 

 

Modification

 

 

 

 

 

 

 

Outstanding

 

 

Outstanding

 

 

 

 

 

 

Outstanding

 

 

Outstanding

 

 

 

Number of

 

 

Recorded

 

 

Recorded

 

 

Number of

 

 

Recorded

 

 

Recorded

 

(unaudited, dollars in thousands)

 

Modifications

 

 

Investment

 

 

Investment

 

 

Modifications

 

 

Investment

 

 

Investment

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land and construction

 

 

—

 

 

$

—

 

 

$

—

 

 

 

—

 

 

$

—

 

 

$

—

 

Improved Property

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total commercial real estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial and industrial

 

 

1

 

 

 

44

 

 

 

40

 

 

 

1

 

 

 

9

 

 

 

9

 

Residential real estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Home equity

 

 

1

 

 

 

199

 

 

 

156

 

 

 

1

 

 

 

20

 

 

 

20

 

Consumer

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

 

 

39

 

 

 

36

 

Total

 

 

2

 

 

$

243

 

 

$

196

 

 

 

4

 

 

$

68

 

 

$

65

 

(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.

 

 

New TDRs (1)

 

 

 

For the Six Months Ended

 

 

 

June 30, 2019

 

 

June 30, 2018

 

 

 

 

 

 

 

Pre-

 

 

Post-

 

 

 

 

 

 

Pre-

 

 

Post-

 

 

 

 

 

 

 

Modification

 

 

Modification

 

 

 

 

 

 

Modification

 

 

Modification

 

 

 

 

 

 

 

Outstanding

 

 

Outstanding

 

 

 

 

 

 

Outstanding

 

 

Outstanding

 

 

 

Number of

 

 

Recorded

 

 

Recorded

 

 

Number of

 

 

Recorded

 

 

Recorded

 

(unaudited, dollars in thousands)

 

Modifications

 

 

Investment

 

 

Investment

 

 

Modifications

 

 

Investment

 

 

Investment

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land and construction

 

 

—

 

 

$

—

 

 

$

—

 

 

 

—

 

 

$

—

 

 

$

—

 

Improved Property

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total commercial real estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial and industrial

 

 

1

 

 

 

44

 

 

 

40

 

 

 

1

 

 

 

10

 

 

 

9

 

Residential real estate

 

 

4

 

 

 

194

 

 

 

188

 

 

 

5

 

 

 

203

 

 

 

185

 

Home equity

 

 

3

 

 

 

386

 

 

 

340

 

 

 

1

 

 

 

20

 

 

 

20

 

Consumer

 

 

1

 

 

 

15

 

 

 

13

 

 

 

4

 

 

 

45

 

 

 

38

 

Total

 

 

9

 

 

$

639

 

 

$

581

 

 

 

11

 

 

$

278

 

 

$

252

 

(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.

The following table summarizes TDRs which defaulted (defined as past due 90 days) during the six months ended June 30, 2019 and 2018, respectively, that were restructured within the last twelve months prior to June 30, 2019 and 2018, respectively:

 

 

Defaulted TDRs (1)

 

 

 

For the Six Months Ended

 

 

 

June 30, 2019

 

 

June 30, 2018

 

 

 

Number of

 

 

Recorded

 

 

Number of

 

 

Recorded

 

(unaudited, dollars in thousands)

 

Defaults

 

 

Investment

 

 

Defaults

 

 

Investment

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land and construction

 

 

—

 

 

$

—

 

 

 

—

 

 

$

—

 

Improved property

 

 

—

 

 

 

—

 

 

 

1

 

 

 

145

 

Total commercial real estate

 

 

—

 

 

 

—

 

 

 

1

 

 

 

145

 

Commercial and industrial

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential real estate

 

 

1

 

 

 

97

 

 

 

1

 

 

 

121

 

Home equity

 

 

—

 

 

 

—

 

 

 

1

 

 

 

7

 

Consumer

 

 

1

 

 

 

13

 

 

 

—

 

 

 

—

 

Total

 

 

2

 

 

$

110

 

 

 

3

 

 

$

273

 

(1) Excludes loans that were either charged-off or cured by period end.  The recorded investment is as of June 30, 2019 and 2018, 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:

 

 

June 30,

 

 

December 31,

 

(unaudited, in thousands)

 

2019

 

 

2018

 

Other real estate owned

 

$

4,891

 

 

$

7,173

 

Repossessed assets

 

 

82

 

 

 

92

 

Total other real estate owned and repossessed assets

 

$

4,973

 

 

$

7,265