XML 113 R38.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Loans and the Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 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 $4.8 million and $3.2 million at December 31, 2019 and 2018, respectively. The unaccreted discount on purchased loans from acquisitions was $51.9 million at December 31, 2019, including $4.6 million related to FTSB, $15.3 million related to FFKT and $24.0 million related to OLBK. The unaccreted discount was $49.3 million at December 31, 2018.

 

 

 

December 31,

 

 

December 31,

 

(in thousands)

 

2019

 

 

2018

 

Commercial real estate:

 

 

 

 

 

 

 

 

Land and construction

 

$

777,151

 

 

$

528,072

 

Improved property

 

 

4,947,857

 

 

 

3,325,623

 

Total commercial real estate

 

 

5,725,008

 

 

 

3,853,695

 

Commercial and industrial

 

 

1,644,699

 

 

 

1,265,460

 

Residential real estate

 

 

1,873,647

 

 

 

1,611,607

 

Home equity

 

 

649,678

 

 

 

599,331

 

Consumer

 

 

374,953

 

 

 

326,188

 

Total portfolio loans

 

 

10,267,985

 

 

 

7,656,281

 

Loans held for sale

 

 

43,013

 

 

 

8,994

 

Total loans

 

$

10,310,998

 

 

$

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:

 

 

 

For the Year Ended December 31, 2019

 

(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

 

$

4,039

 

 

$

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

 

 

746

 

 

 

2,560

 

 

 

2,714

 

 

 

1,400

 

 

 

851

 

 

 

1,130

 

 

 

1,664

 

 

 

11,065

 

Provision for loan commitments

 

 

66

 

 

 

(11

)

 

 

49

 

 

 

3

 

 

 

24

 

 

 

2

 

 

 

—

 

 

 

133

 

Total provision for credit losses

 

 

812

 

 

 

2,549

 

 

 

2,763

 

 

 

1,403

 

 

 

875

 

 

 

1,132

 

 

 

1,664

 

 

 

11,198

 

Charge-offs

 

 

(107

)

 

 

(3,867

)

 

 

(1,816

)

 

 

(1,276

)

 

 

(1,213

)

 

 

(2,719

)

 

 

(1,659

)

 

 

(12,657

)

Recoveries

 

 

271

 

 

 

752

 

 

 

1,104

 

 

 

365

 

 

 

428

 

 

 

1,743

 

 

 

410

 

 

 

5,073

 

Net recoveries (charge-offs)

 

 

164

 

 

 

(3,115

)

 

 

(712

)

 

 

(911

)

 

 

(785

)

 

 

(976

)

 

 

(1,249

)

 

 

(7,584

)

Balance at end of period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 

 

4,949

 

 

 

20,293

 

 

 

14,116

 

 

 

4,311

 

 

 

4,422

 

 

 

2,951

 

 

 

1,387

 

 

 

52,429

 

Allowance for loan commitments

 

 

235

 

 

 

22

 

 

 

311

 

 

 

15

 

 

 

250

 

 

 

41

 

 

 

—

 

 

 

874

 

Total ending allowance for credit losses

 

$

5,184

 

 

$

20,315

 

 

$

14,427

 

 

$

4,326

 

 

$

4,672

 

 

$

2,992

 

 

$

1,387

 

 

$

53,303

 

 

 

 

For the Year Ended December 31, 2018

 

(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

 

$

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

 

 

650

 

 

 

(521

)

 

 

3,430

 

 

 

1,612

 

 

 

138

 

 

 

1,142

 

 

 

1,146

 

 

 

7,597

 

Provision for loan commitments

 

 

50

 

 

 

7

 

 

 

89

 

 

 

5

 

 

 

14

 

 

 

2

 

 

 

—

 

 

 

167

 

Total provision for credit losses

 

 

700

 

 

 

(514

)

 

 

3,519

 

 

 

1,617

 

 

 

152

 

 

 

1,144

 

 

 

1,146

 

 

 

7,764

 

Charge-offs

 

 

(137

)

 

 

(1,090

)

 

 

(1,830

)

 

 

(1,435

)

 

 

(1,193

)

 

 

(3,508

)

 

 

(1,374

)

 

 

(10,567

)

Recoveries

 

 

409

 

 

 

1,293

 

 

 

1,100

 

 

 

439

 

 

 

914

 

 

 

2,100

 

 

 

379

 

 

 

6,634

 

Net recoveries (charge-offs)

 

 

272

 

 

 

203

 

 

 

(730

)

 

 

(996

)

 

 

(279

)

 

 

(1,408

)

 

 

(995

)

 

 

(3,933

)

Balance at end of period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 ending allowance for credit losses

 

$

4,208

 

 

$

20,881

 

 

$

12,376

 

 

$

3,834

 

 

$

4,582

 

 

$

2,836

 

 

$

972

 

 

$

49,689

 

 

 

 

For the Year Ended December 31, 2017

 

(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

 

$

4,348

 

 

$

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 beginning allowance for credit losses

 

 

4,499

 

 

 

18,645

 

 

 

8,600

 

 

 

4,115

 

 

 

3,584

 

 

 

4,042

 

 

 

760

 

 

 

44,245

 

Provision for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

 

(1,259

)

 

 

4,386

 

 

 

2,733

 

 

 

(175

)

 

 

2,066

 

 

 

1,231

 

 

 

1,001

 

 

 

9,983

 

Provision for loan commitments

 

 

(32

)

 

 

9

 

 

 

(15

)

 

 

(2

)

 

 

50

 

 

 

(7

)

 

 

—

 

 

 

3

 

Total provision for credit losses

 

 

(1,291

)

 

 

4,395

 

 

 

2,718

 

 

 

(177

)

 

 

2,116

 

 

 

1,224

 

 

 

1,001

 

 

 

9,986

 

Charge-offs

 

 

(72

)

 

 

(2,381

)

 

 

(2,669

)

 

 

(1,064

)

 

 

(1,221

)

 

 

(3,989

)

 

 

(1,293

)

 

 

(12,689

)

Recoveries

 

 

100

 

 

 

533

 

 

 

938

 

 

 

339

 

 

 

230

 

 

 

1,823

 

 

 

353

 

 

 

4,316

 

Net recoveries (charge-offs)

 

 

28

 

 

 

(1,848

)

 

 

(1,731

)

 

 

(725

)

 

 

(991

)

 

 

(2,166

)

 

 

(940

)

 

 

(8,373

)

Balance at end of period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 ending allowance for credit losses

 

$

3,236

 

 

$

21,192

 

 

$

9,587

 

 

$

3,213

 

 

$

4,709

 

 

$

3,100

 

 

$

821

 

 

$

45,858

 

 
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

Overdraft

 

 

Total

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loans individually

   evaluated for impairment

 

$

—

 

 

$

93

 

 

$

10

 

 

$

14

 

 

$

6

 

 

$

1

 

 

$

—

 

 

$

124

 

Allowance for loans collectively

   evaluated for impairment

 

 

4,949

 

 

 

20,200

 

 

 

14,106

 

 

 

4,297

 

 

 

4,416

 

 

 

2,950

 

 

 

1,387

 

 

 

52,305

 

Allowance for loan commitments

 

 

235

 

 

 

22

 

 

 

311

 

 

 

15

 

 

 

250

 

 

 

41

 

 

 

—

 

 

 

874

 

Total allowance for credit losses

 

$

5,184

 

 

$

20,315

 

 

$

14,427

 

 

$

4,326

 

 

$

4,672

 

 

$

2,992

 

 

$

1,387

 

 

$

53,303

 

Portfolio loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated for impairment (1)

 

$

—

 

 

$

3,907

 

 

$

11,961

 

 

$

4,392

 

 

$

704

 

 

$

53

 

 

$

—

 

 

$

21,017

 

Collectively evaluated for impairment

 

 

777,033

 

 

 

4,935,383

 

 

 

1,631,855

 

 

 

1,865,151

 

 

 

648,221

 

 

 

374,812

 

 

 

—

 

 

 

10,232,455

 

Acquired with deteriorated credit quality

 

 

118

 

 

 

8,567

 

 

 

883

 

 

 

4,104

 

 

 

753

 

 

 

88

 

 

 

—

 

 

 

14,513

 

Total portfolio loans

 

$

777,151

 

 

$

4,947,857

 

 

$

1,644,699

 

 

$

1,873,647

 

 

$

649,678

 

 

$

374,953

 

 

$

—

 

 

$

10,267,985

 

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

 

(in thousands)

 

Commercial

Real Estate-

Land and

Construction

 

 

Commercial

Real Estate-

Improved

Property

 

 

Commercial

& Industrial

 

 

Total

Commercial

Loans

 

As of December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

769,537

 

 

$

4,807,003

 

 

$

1,570,689

 

 

$

7,147,229

 

Criticized—compromised

 

 

4,338

 

 

 

65,612

 

 

 

49,009

 

 

 

118,959

 

Classified—substandard

 

 

3,276

 

 

 

75,242

 

 

 

13,231

 

 

 

91,749

 

Classified—doubtful

 

 

—

 

 

 

—

 

 

 

11,770

 

 

 

11,770

 

Total

 

$

777,151

 

 

$

4,947,857

 

 

$

1,644,699

 

 

$

7,369,707

 

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 All Loans Acquired from Prior Acquisitions with Deteriorated Credit Quality

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

 

 

 

For the Years Ended

 

(in thousands)

 

December 31, 2019

 

 

December 31, 2018

 

Balance at beginning of period

 

$

6,203

 

 

$

1,724

 

Acquisitions

 

 

1,602

 

 

 

885

 

Reduction due to change in projected cash flows

 

 

(1,821

)

 

 

(776

)

Reclass from non-accretable

 

 

3,213

 

 

 

7,052

 

Transfers

 

 

—

 

 

 

-

 

Accretion

 

 

(6,125

)

 

 

(2,682

)

Balance at end of period

 

$

3,072

 

 

$

6,203

 

 
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, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land and construction

 

$

776,153

 

 

$

529

 

 

$

121

 

 

$

348

 

 

$

998

 

 

$

777,151

 

 

$

26

 

Improved property

 

 

4,921,721

 

 

 

10,207

 

 

 

5,639

 

 

 

10,290

 

 

 

26,136

 

 

 

4,947,857

 

 

 

4,709

 

Total commercial real estate

 

 

5,697,874

 

 

 

10,736

 

 

 

5,760

 

 

 

10,638

 

 

 

27,134

 

 

 

5,725,008

 

 

 

4,735

 

Commercial and industrial

 

 

1,635,232

 

 

 

2,519

 

 

 

2,813

 

 

 

4,135

 

 

 

9,467

 

 

 

1,644,699

 

 

 

1,793

 

Residential real estate

 

 

1,850,806

 

 

 

4,421

 

 

 

5,372

 

 

 

13,048

 

 

 

22,841

 

 

 

1,873,647

 

 

 

3,643

 

Home equity

 

 

641,026

 

 

 

3,323

 

 

 

621

 

 

 

4,708

 

 

 

8,652

 

 

 

649,678

 

 

 

985

 

Consumer

 

 

370,934

 

 

 

2,537

 

 

 

965

 

 

 

517

 

 

 

4,019

 

 

 

374,953

 

 

 

457

 

Total portfolio loans

 

 

10,195,872

 

 

 

23,536

 

 

 

15,531

 

 

 

33,046

 

 

 

72,113

 

 

 

10,267,985

 

 

 

11,613

 

Loans held for sale

 

 

43,013

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

43,013

 

 

 

—

 

Total loans

 

$

10,238,885

 

 

$

23,536

 

 

$

15,531

 

 

$

33,046

 

 

$

72,113

 

 

$

10,310,998

 

 

$

11,613

 

Impaired loans included above are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-accrual loans

 

$

21,061

 

 

$

897

 

 

$

1,559

 

 

$

21,396

 

 

 

23,852

 

 

$

44,913

 

 

 

 

 

TDRs accruing interest (1)

 

 

5,113

 

 

 

151

 

 

 

130

 

 

 

37

 

 

 

318

 

 

 

5,431

 

 

 

 

 

Total impaired

 

$

26,174

 

 

$

1,048

 

 

$

1,689

 

 

$

21,433

 

 

$

24,170

 

 

$

50,344

 

 

 

 

 

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

 

 

 

December 31, 2019

 

 

December 31, 2018

 

(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

 

$

616

 

 

$

580

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Improved property

 

 

5,097

 

 

 

4,229

 

 

 

—

 

 

 

14,038

 

 

 

9,293

 

 

 

—

 

Commercial and industrial

 

 

15,182

 

 

 

14,313

 

 

 

—

 

 

 

4,610

 

 

 

3,428

 

 

 

—

 

Residential real estate

 

 

17,753

 

 

 

15,952

 

 

 

—

 

 

 

20,270

 

 

 

18,016

 

 

 

—

 

Home equity

 

 

6,523

 

 

 

5,610

 

 

 

—

 

 

 

5,924

 

 

 

5,036

 

 

 

—

 

Consumer

 

 

546

 

 

 

413

 

 

 

—

 

 

 

846

 

 

 

671

 

 

 

—

 

Total impaired loans without a specific allowance

 

 

45,717

 

 

 

41,097

 

 

 

—

 

 

 

45,688

 

 

 

36,444

 

 

 

—

 

With a specific allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land and construction

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Improved property

 

 

4,207

 

 

 

3,907

 

 

 

93

 

 

 

—

 

 

 

—

 

 

 

—

 

      Commercial and industrial

 

 

193

 

 

 

191

 

 

 

10

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential real estate

 

 

4,772

 

 

 

4,392

 

 

 

14

 

 

 

—

 

 

 

—

 

 

 

—

 

Home equity

 

 

724

 

 

 

704

 

 

 

6

 

 

 

—

 

 

 

—

 

 

 

—

 

Consumer

 

 

104

 

 

 

53

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

Total impaired loans with a specific allowance

 

 

10,000

 

 

 

9,247

 

 

 

124

 

 

 

-

 

 

 

-

 

 

 

-

 

Total impaired loans

 

$

55,717

 

 

$

50,344

 

 

$

124

 

 

$

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 Year

Ended December 31, 2019

 

 

For the Year

Ended December 31, 2018

 

 

For the Year

Ended December 31, 2017

 

(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

 

$

343

 

 

$

—

 

 

$

208

 

 

$

—

 

 

$

460

 

 

$

—

 

Improved property

 

 

7,216

 

 

 

84

 

 

 

10,658

 

 

 

381

 

 

 

10,790

 

 

 

436

 

Commercial and industrial

 

 

5,207

 

 

 

15

 

 

 

3,076

 

 

 

12

 

 

 

3,577

 

 

 

8

 

Residential real estate

 

 

14,192

 

 

 

211

 

 

 

19,026

 

 

 

240

 

 

 

17,991

 

 

 

252

 

Home equity

 

 

4,930

 

 

 

28

 

 

 

5,005

 

 

 

25

 

 

 

4,599

 

 

 

19

 

Consumer

 

 

423

 

 

 

3

 

 

 

808

 

 

 

7

 

 

 

787

 

 

 

7

 

Total impaired loans without a specific allowance

 

 

32,311

 

 

 

341

 

 

 

38,781

 

 

 

665

 

 

 

38,204

 

 

 

722

 

With a specific allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land and construction

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Improved property

 

 

3,317

 

 

 

—

 

 

 

842

 

 

 

—

 

 

 

4,446

 

 

 

—

 

Commercial and industrial

 

 

175

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

254

 

 

 

—

 

Residential real estate

 

 

3,811

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Home equity

 

 

634

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Consumer

 

 

58

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total impaired loans with a specific allowance

 

 

7,995

 

 

 

—

 

 

 

842

 

 

 

—

 

 

 

4,700

 

 

 

—

 

Total impaired loans

 

$

40,306

 

 

$

341

 

 

$

39,623

 

 

$

665

 

 

$

42,904

 

 

$

722

 

 
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, 2019

 

 

December 31, 2018

 

Commercial real estate:

 

 

 

 

 

 

 

 

Land and construction

 

$

580

 

 

$

—

 

Improved property

 

 

6,815

 

 

 

8,413

 

Total commercial real estate

 

 

7,395

 

 

 

8,413

 

Commercial and industrial

 

 

14,313

 

 

 

3,260

 

Residential real estate

 

 

16,867

 

 

 

13,831

 

Home equity

 

 

5,903

 

 

 

4,610

 

Consumer

 

 

435

 

 

 

586

 

Total

 

$

44,913

 

 

$

30,700

 

 

(1)

At December 31, 2019, there were two borrowers with a loan balance greater than $1.0 million totaling $14.2 million, as compared to one borrower with a loan balance 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

 

 

 

December 31, 2019

 

 

December 31, 2018

 

(in thousands)

 

Accruing

 

 

Non-Accrual

 

 

Total

 

 

Accruing

 

 

Non-Accrual

 

 

Total

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land and construction

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Improved property

 

 

1,321

 

 

 

191

 

 

 

1,512

 

 

 

880

 

 

 

1,529

 

 

 

2,409

 

Total commercial real estate

 

 

1,321

 

 

 

191

 

 

 

1,512

 

 

 

880

 

 

 

1,529

 

 

 

2,409

 

Commercial and industrial

 

 

191

 

 

 

—

 

 

 

191

 

 

 

168

 

 

 

169

 

 

 

337

 

Residential real estate

 

 

3,477

 

 

 

909

 

 

 

4,386

 

 

 

4,185

 

 

 

921

 

 

 

5,106

 

Home equity

 

 

411

 

 

 

293

 

 

 

704

 

 

 

426

 

 

 

198

 

 

 

624

 

Consumer

 

 

31

 

 

 

29

 

 

 

60

 

 

 

85

 

 

 

38

 

 

 

123

 

Total

 

$

5,431

 

 

$

1,422

 

 

$

6,853

 

 

$

5,744

 

 

$

2,855

 

 

$

8,599

 

 
Loans Identified as TDRs

The following table presents details related to loans identified as TDRs during the years ended December 31, 2019 and 2018:

 

 

 

New TDRs (1)

For the Year

Ended December 31,2019

 

 

New TDRs (1)

For the Year

Ended December 31, 2018

 

(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

 

 

—

 

 

$

—

 

 

$

—

 

 

 

—

 

 

$

—

 

 

$

—

 

Improved property

 

 

1

 

 

 

610

 

 

 

603

 

 

 

2

 

 

 

837

 

 

 

805

 

Total commercial real estate

 

 

1

 

 

 

610

 

 

 

603

 

 

 

2

 

 

 

837

 

 

 

805

 

Commercial and industrial

 

 

2

 

 

 

57

 

 

 

48

 

 

 

4

 

 

 

240

 

 

 

188

 

Residential real estate

 

 

4

 

 

 

194

 

 

 

177

 

 

 

4

 

 

 

218

 

 

 

190

 

Home equity

 

 

2

 

 

 

187

 

 

 

181

 

 

 

2

 

 

 

91

 

 

 

84

 

Consumer

 

 

2

 

 

 

45

 

 

 

28

 

 

 

5

 

 

 

69

 

 

 

49

 

Total

 

 

11

 

 

$

1,093

 

 

$

1,037

 

 

 

17

 

 

$

1,455

 

 

$

1,316

 

 

(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 years ended December 31, 2019 and 2018 that were restructured within the last twelve months prior to December 31, 2019 and 2018:

 

 

 

Defaulted TDRs (1)

For the Year

Ended December 31, 2019

 

 

Defaulted TDRs (1)

For the Year

Ended December 31, 2018

 

(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

 

 

1

 

 

 

95

 

 

 

2

 

 

 

109

 

Home equity

 

 

1

 

 

 

97

 

 

 

—

 

 

 

—

 

Consumer

 

 

1

 

 

 

12

 

 

 

—

 

 

 

—

 

Total

 

 

3

 

 

$

204

 

 

 

2

 

 

$

109

 

 

(1)

Excludes loans that were either charged-off or cured by period end. The recorded investment is as of December 31, 2019 and 2018.
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)

 

2019

 

 

2018

 

 

2017

 

Average impaired loans

 

$

40,306

 

 

$

39,623

 

 

$

42,904

 

Amount of contractual interest income on impaired loans

 

 

3,047

 

 

 

2,631

 

 

 

3,089

 

Amount of interest income recognized on impaired loans

 

 

341

 

 

 

665

 

 

 

722

 

 
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)

 

2019

 

 

2018

 

Other real estate owned

 

$

4,062

 

 

$

7,173

 

Repossessed assets

 

 

116

 

 

 

92

 

Total other real estate owned and repossessed assets

 

$

4,178

 

 

$

7,265