Allowance For Loan Losses (Tables)

9 Months Ended

Sep. 30, 2017

Schedule Of Allowance For Loan Loss By Portfolio Segment

The following table summarizes the activity in the allowance for loan loss, by portfolio segment, for the nine months ended September 30, 2017 and 2016 (in thousands). The allocation of a portion of the allowance in one portfolio segment does not preclude its availability to absorb losses in other portfolio segments. The following table also presents the balance in the allowance for loan loss disaggregated on the basis of the Company’s impairment measurement method and the related recorded investment in loans, by portfolio segment, as of September 30, 2017 and December 31, 2016 (in thousands).



	Commercial &			Commercial			Residential									DDA
	Industrial			Real Estate			Real Estate			Home Equity			Consumer			Overdrafts			Total
Nine months ended September 30, 2017
Allowance for loan loss
Beginning balance	$	4,206		$	6,573		$	6,680		$	1,417		$	82		$	772		$	19,730
Charge-offs	(150		)	(564		)	(1,295		)	(256		)	(47		)	(1,989		)	(4,301		)
Recoveries	57			92			286			45			46			1,015			1,541
Provision for acquired loans	—			39			—			—			—			—			39
Provision	946			166			218			68			(25		)	1,172			2,545
Ending balance	$	5,059		$	6,306		$	5,889		$	1,274		$	56		$	970		$	19,554

Nine months ended September 30, 2016
Allowance for loan loss
Beginning balance	$	3,271		$	6,985		$	6,778		$	1,463		$	97		$	657		$	19,251
Charge-offs	(148		)	(1,213		)	(1,281		)	(300		)	(102		)	(1,017		)	(4,061		)
Recoveries	13			447			113			—			109			585			1,267
Provision for acquired loans	—			164			—			—			—			—			164
Provision	918			(112		)	1,414			284			(29		)	454			2,929
Ending balance	$	4,054		$	6,271		$	7,024		$	1,447		$	75		$	679		$	19,550

As of September 30, 2017
Allowance for loan loss
Evaluated for impairment:
Individually	$	—		$	705		$	—		$	—		$	—		$	—		$	705
Collectively	5,057			5,424			5,861			1,274			54			970			18,640
Acquired with deteriorated
credit quality	2			177			28			—			2			—			209
Total	$	5,059		$	6,306		$	5,889		$	1,274		$	56		$	970		$	19,554

Loans
Evaluated for impairment:
Individually	$	1,095		$	8,866		$	—		$	—		$	—		$	—		$	9,961
Collectively	203,588			1,245,347			1,463,344			139,702			30,206			4,317			3,086,504
Acquired with deteriorated
credit quality	39			6,693			2,598			—			117			—			9,447
Total	$	204,722		$	1,260,906		$	1,465,942		$	139,702		$	30,323		$	4,317		$	3,105,912

As of December 31, 2016
Allowance for loan loss
Evaluated for impairment:
Individually	$	—		$	665		$	—		$	—		$	—		$	—		$	665
Collectively	4,200			5,788			6,589			1,417			82			772			18,848
Acquired with deteriorated
credit quality	6			120			91			—			—			—			217
Total	$	4,206		$	6,573		$	6,680		$	1,417		$	82		$	772		$	19,730

Loans
Evaluated for impairment:
Individually	$	1,611		$	5,970		$	—		$	—		$	—		$	—		$	7,581
Collectively	183,741			1,216,050			1,448,830			141,965			32,545			5,071			3,028,202
Acquired with deteriorated



credit quality	315		7,496		2,632		—		—		—		10,443
Total	$	185,667	$	1,229,516	$	1,451,462	$	141,965	$	32,545	$	5,071	$	3,046,226

Schedule Of Credit Quality Indicators

The Company uses the following definitions for its risk ratings:



Risk Rating	Description
Pass ratings:
(a) Exceptional	Loans classified as exceptional are secured with liquid collateral conforming to the internal loan policy. Loans rated within this category pose minimal risk of loss to the bank.
(b) Good	Loans classified as good have similar characteristics that include a strong balance sheet, satisfactory debt service coverage ratios, strong management and/or guarantors, and little exposure to economic cycles. Loans in this category generally have a low chance of loss to the bank.
(c) Acceptable	Loans classified as acceptable have acceptable liquidity levels, adequate debt service coverage ratios, experienced management, and have average exposure to economic cycles. Loans within this category generally have a low risk of loss to the bank.
(d) Pass/watch	Loans classified as pass/watch have erratic levels of leverage and/or liquidity, cash flow is volatile and the borrower is subject to moderate economic risk. A borrower in this category poses a low to moderate risk of loss to the bank.
Special mention	Loans classified as special mention have a potential weakness(es) that deserves management’s close attention. The potential weakness could result in deterioration of the loan repayment or the bank’s credit position at some future date. A loan rated in this category poses a moderate loss risk to the bank.
Substandard	Loans classified as substandard reflect a customer with a well defined weakness that jeopardizes the liquidation of the debt. Loans in this category have the possibility that the bank will sustain some loss if the deficiencies are not corrected and the bank’s collateral value is weakened by the financial deterioration of the borrower.
Doubtful	Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristics that make collection of the full contract amount highly improbable. Loans rated in this category are most likely to cause the bank to have a loss due to a collateral shortfall or a negative capital position.

The following table presents the Company’s commercial loans by credit quality indicators, by class (in thousands):



	Commercial and Industrial		Commercial Real Estate		Total
September 30, 2017
Pass	$	166,408	$	1,214,526	$	1,380,934
Special mention	26,228		12,680		38,908
Substandard	12,086		33,700		45,786
Doubtful	—		—		—
Total	$	204,722	$	1,260,906	$	1,465,628

December 31, 2016
Pass	$	176,823	$	1,178,288	$	1,355,111
Special mention	2,427		16,031		18,458
Substandard	6,417		35,197		41,614
Doubtful	—		—		—
Total	$	185,667	$	1,229,516	$	1,415,183

Schedule Of Noncommercial Loans By Payment Performance

The following table presents the Company's non-commercial loans by payment performance, by class (in thousands):



	Performing		Non-Performing		Total
September 30, 2017
Residential real estate	$	1,463,386	$	2,556	$	1,465,942
Home equity	139,610		92		139,702
Consumer	30,323		—		30,323
DDA overdrafts	4,317		—		4,317
Total	$	1,637,636	$	2,648	$	1,640,284

December 31, 2016
Residential real estate	$	1,447,087	$	4,375	$	1,451,462
Home equity	141,834		131		141,965
Consumer	32,545		—		32,545
DDA overdrafts	5,071		—		5,071
Total	$	1,626,537	$	4,506	$	1,631,043

Schedule Of Aging Analysis Of Accruing And Non-Accruing Loans

The following table presents an aging analysis of the Company’s accruing and non-accruing loans, by class (in thousands):



	September 30, 2017
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	1,458,091	$	4,684	$	611	$	—	$	—	$	2,556	$	1,465,942
Home equity	138,737		797		57		19		—		92		139,702
Commercial and industrial	203,093		304		—		—		—		1,325		204,722
Commercial real estate	1,253,686		240		133		—		147		6,700		1,260,906
Consumer	30,298		23		2		—		—		—		30,323
DDA overdrafts	3,765		542		7		3		—		—		4,317
Total	$	3,087,670	$	6,590	$	810	$	22	$	147	$	10,673	$	3,105,912

	December 31, 2016
	Accruing
	Current		30-59 days		60-89 days		Over 90 days		Purchased-Credit Impaired		Non-accrual		Total
Residential real estate	$	1,441,086	$	5,364	$	637	$	73	$	—	$	4,302	$	1,451,462
Home equity	141,192		423		219		31		—		100		141,965
Commercial and industrial	183,615		94		—		—		—		1,958		185,667
Commercial real estate	1,221,344		553		—		278		—		7,341		1,229,516
Consumer	32,506		38		1		—		—		—		32,545
DDA overdrafts	4,472		595		4		—		—		—		5,071
Total	$	3,024,215	$	7,067	$	861	$	382	$	—	$	13,701	$	3,046,226

Schedule Of Impaired Loans

The following table presents the Company’s impaired loans, by class (in thousands). The difference between the unpaid principal balance and the recorded investment generally reflects amounts that have been previously charged-off. There are no impaired residential, home equity, or consumer loans.



	September 30, 2017						December 31, 2016
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
With no related allowance recorded:
Commercial and industrial	$	1,095	$	3,259	$	—	$	1,611	$	3,775	$	—
Commercial real estate	3,062		4,887		—		3,138		4,963		—
Total	$	4,157	$	8,146	$	—	$	4,749	$	8,738	$	—

With an allowance recorded:
Commercial and industrial	$	—	$	—	$	—	$	—	$	—	$	—
Commercial real estate	5,804		5,804		705		2,832		2,832		665
Total	$	5,804	$	5,804	$	705	$	2,832	$	2,832	$	665

Schedule Of Information Related To Average Recorded Investment And Interest Income Recognized On Impaired Loans

The following table presents information related to the average recorded investment and interest income recognized on the Company’s impaired loans, by class (in thousands):



	Nine months ended September 30,
	2017				2016
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
With no related allowance recorded:
Commercial and industrial	$	1,165	—		$	2,234	$	—
Commercial real estate	5,035		64		4,286		9
Total	$	6,200	$	64	$	6,520	$	9

With an allowance recorded:
Commercial and industrial	$	—	$	—	$	—	$	—
Commercial real estate	3,821		83		—		—
Total	$	3,821	$	83	$	—	$	—

Schedule Of Troubled Debt Restructurings

The following tables set forth the Company’s TDRs (in thousands):



	September 30, 2017						December 31, 2016
			Non-						Non-
	Accruing		Accruing		Total		Accruing		Accruing		Total
Commercial and industrial	$	31	$	—	$	31	$	42	$	—	$	42
Commercial real estate	8,427		—		8,427		5,525		—		5,525
Residential real estate	20,741		47		20,788		20,424		391		20,815
Home equity	2,947		—		2,947		3,105		30		3,135
Consumer	—		—		—		—		—		—
Total	$	32,146	$	47	$	32,193	$	29,096	$	421	$	29,517



	New TDRs
	Nine months ended September 30,
	2017					2016
		Pre		Post			Pre		Post
		Modification		Modification			Modification		Modification
		Outstanding		Outstanding			Outstanding		Outstanding
	Number of	Recorded		Recorded		Number of	Recorded		Recorded
	Contracts	Investment		Investment		Contracts	Investment		Investment
Commercial and industrial	—	$	—	$	—	—	$	—	$	—
Commercial real estate	—	—		—		1	2,207		2,207
Residential real estate	27	3,009		3,009		30	2,924		2,924
Home equity	7	145		145		7	190		190
Consumer	—	—		—		—	—		—
Total	34	$	3,154	$	3,154	38	$	5,321	$	5,321