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Allowance For Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2018
Receivables [Abstract]  
Schedule Of Allowance For Loan Loss By Portfolio Segment
The following table summarizes the activity in the allowance for loan losses, by portfolio loan classification, for the six months ended June 30, 2018 and 2017 (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 June 30, 2018 and December 31, 2017 (in thousands).
 
 
Commercial and
Commercial
Residential
 
 
DDA
 
 
Industrial
Real Estate
Real Estate
Home Equity
Consumer
Overdrafts
Total
Six months ended June 30, 2018
 
 
 
 
 
 
 
Allowance for loan losses
Beginning balance
$
4,571

$
6,183

$
5,212

$
1,138

$
62

$
1,670

$
18,836

Charge-offs
(724
)
(275
)
(220
)
(111
)
(354
)
(1,272
)
(2,956
)
Recoveries
1,477

372

159

—

105

765

2,878

(Recovery of) provision
(1,597
)
(350
)
(572
)
133

455

49

(1,882
)
Ending balance
$
3,727

$
5,930

$
4,579

$
1,160

$
268

$
1,212

$
16,876

 
 
 
 
 
 
 
 
Six months ended June 30, 2017
 

 

 

 

 

 

 

Allowance for loan losses
 

 

 

 

 

 

 

Beginning balance
$
4,206

$
6,573

$
6,680

$
1,417

$
82

$
772

$
19,730

Charge-offs
(110
)
(282
)
(884
)
(239
)
(29
)
(1,271
)
(2,815
)
Recoveries
55

31

156

—

25

690

957

(Recovery of) provision
(59
)
(165
)
695

176

(5
)
549

1,191

Ending balance
$
4,092

$
6,157

$
6,647

$
1,354

$
73

$
740

$
19,063

 
 
 
 
 
 
 
 
As of June 30, 2018
 

 

 

 

 

 

 

Allowance for loan losses
 

 

 

 

 

 

 

Evaluated for impairment:
 

 

 

 

 

 

 

Individually
$
—

$
320

$
—

$
—

$
—

$
—

$
320

Collectively
3,723

5,557

4,482

1,160

261

1,212

16,395

Acquired with deteriorated credit quality
4

53

97

—

7

—

161

Total
$
3,727

$
5,930

$
4,579

$
1,160

$
268

$
1,212

$
16,876

 
 
 
 
 
 
 
 
Loans
 

 

 

 

 

 

 

Evaluated for impairment:
 

 

 

 

 

 

 

Individually
$
667

$
10,030

$
—

$
—

$
—

$
—

$
10,697

Collectively
212,820

1,279,290

1,470,326

139,245

31,022

3,994

3,136,697

Acquired with deteriorated credit quality
200

5,169

2,590

—

115

—

8,074

Total
$
213,687

$
1,294,489

$
1,472,916

$
139,245

$
31,137

$
3,994

$
3,155,468

 
 
 
 
 
 
 
 
As of December 31, 2017
 

 

 

 

 

 

 

Allowance for loan losses
 

 

 

 

 

 

 

Evaluated for impairment:
 

 

 

 

 

 

 

Individually
$
—

$
647

$
—

$
—

$
—

$
—

$
647

Collectively
4,567

5,313

5,112

1,138

58

1,670

17,858

Acquired with deteriorated credit quality
4

223

100

—

4

—

331

Total
$
4,571

$
6,183

$
5,212

$
1,138

$
62

$
1,670

$
18,836

 
 
 
 
 
 
 
 
Loans
 

 

 

 

 

 

 

Evaluated for impairment:
 

 

 

 

 

 

 

Individually
$
849

$
8,818

$
—

$
—

$
—

$
—

$
9,667

Collectively
207,429

1,263,076

1,465,685

139,499

29,046

4,411

3,109,146

Acquired with deteriorated credit quality
206

5,682

2,593

—

116

—

8,597

Total
$
208,484

$
1,277,576

$
1,468,278

$
139,499

$
29,162

$
4,411

$
3,127,410
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 portfolio loan classification (in thousands):
 
Commercial and Industrial
Commercial Real Estate
Total
June 30, 2018
 
 
 
Pass
$
180,720

$
1,255,168

$
1,435,888

Special mention
26,614

6,629

33,243

Substandard
6,353

32,692

39,045

Doubtful
—

—

—

Total
$
213,687

$
1,294,489

$
1,508,176

 
 
 
 
December 31, 2017
 

 

 

Pass
$
175,951

$
1,231,256

$
1,407,207

Special mention
25,872

8,068

33,940

Substandard
6,661

38,252

44,913

Doubtful
—

—

—

Total
$
208,484

$
1,277,576

$
1,486,060
Schedule Of Noncommercial Loans By Payment Performance
The following table presents the Company's non-commercial loans by payment performance, by portfolio loan classification (in thousands):
 
Performing
Non-Performing
Total
June 30, 2018
 
 
 
Residential real estate
$
1,469,052

$
3,864

$
1,472,916

Home equity
139,013

232

139,245

Consumer
31,137

—

31,137

DDA overdrafts
3,994

—

3,994

Total
$
1,643,196

$
4,096

$
1,647,292

 
 
 
 
December 31, 2017
 
 
 
Residential real estate
$
1,465,445

$
2,833

$
1,468,278

Home equity
139,239

260

139,499

Consumer
29,162

—

29,162

DDA overdrafts
4,411

—

4,411

Total
$
1,638,257

$
3,093

$
1,641,350
Schedule Of Aging Analysis Of Accruing And Non-Accruing Loans
The following table presents an aging analysis of the Company’s accruing and non-accrual loans, by portfolio loan classification (in thousands):
 
 
June 30, 2018
 
Accruing
 
 
 
Current
30-59 days
60-89 days
Over 90 days
Non-accrual
Total
Residential real estate
$
1,463,135

$
5,097

$
820

$
81

$
3,783

$
1,472,916

Home equity
138,495

447

71

64

168

139,245

Commercial and industrial
212,200

624

—

—

863

213,687

Commercial real estate
1,286,381

188

213

—

7,707

1,294,489

Consumer
30,546

31

3

—

557

31,137

DDA overdrafts
3,469

505

20

—

—

3,994

Total
$
3,134,226

$
6,892

$
1,127

$
145

$
13,078

$
3,155,468

 
 
 
 
 
 
 
 
December 31, 2017
 
Accruing
 
 
 
Current
30-59 days
60-89 days
Over 90 days
Non-accrual
Total
Residential real estate
$
1,458,746

$
5,990

$
709

$
19

$
2,814

$
1,468,278

Home equity
138,480

671

88

92

168

139,499

Commercial and industrial
206,447

549

1

142

1,345

208,484

Commercial real estate
1,269,520

1,841

245

—

5,970

1,277,576

Consumer
29,108

39

13

2

—

29,162

DDA overdrafts
3,849

541

14

7

—

4,411

Total
$
3,106,150

$
9,631

$
1,070

$
262

$
10,297

$
3,127,410
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.

 
June 30, 2018
December 31, 2017
 
 
Unpaid
 
 
Unpaid
 
 
Recorded
Principal
Related
Recorded
Principal
Related
 
Investment
Balance
Allowance
Investment
Balance
Allowance
With no related allowance recorded:
 
 
 
 
 
 
Commercial and industrial
$
667

$
667

$
—

$
849

$
3,013

$
—

Commercial real estate
4,299

6,124

—

3,036

4,861

—

Total
$
4,966

$
6,791

$
—

$
3,885

$
7,874

$
—

 
 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
 
 
Commercial and industrial
$
—

$
—

$
—

$
—

$
—

$
—

Commercial real estate
5,731

5,731

320

5,782

5,782

647

Total
$
5,731

$
5,731

$
320

$
5,782

$
5,782

$
647
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):
 
Six months ended June 30,
 
2018
2017
 
Average
Interest
Average
Interest
 
Recorded
Income
Recorded
Income
 
Investment
Recognized
Investment
Recognized
With no related allowance recorded:
 
 
 
 
Commercial and industrial
$
1,036

—

$
1,282

$
—

Commercial real estate
3,715

6

6,022

63

Total
$
4,751

$
6

$
7,304

$
63

 
 
 
 
 
With an allowance recorded:
 
 
 
 
Commercial and industrial
$
—

$
—

$
—

$
—

Commercial real estate
5,741

110

2,832

38

Total
$
5,741

$
110

$
2,832

$
38
Schedule Of Troubled Debt Restructurings
The following tables set forth the Company’s TDRs (in thousands):

 
June 30, 2018
December 31, 2017
 
Non-
 
 
Non-
 
Accruing
Accruing
Total
Accruing
Accruing
Total
Commercial and industrial
$
119

$
—

$
119

$
135

$
—

$
135

Commercial real estate
8,279

—

8,279

8,381

—

8,381

Residential real estate
20,424

307

20,731

21,005

84

21,089

Home equity
3,156

40

3,196

3,047

50

3,097

Consumer
—

—

—

—

—

—

Total
$
31,978

$
347

$
32,325

$
32,568

$
134

$
32,702

 
 
New TDRs
 
Six months ended June 30,
 
2018
2017
 
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
—

—

—

—

—

—

Residential real estate
17

1,028

1,028

19

2,593

2,593

Home equity
9

194

194

5

154

154

Consumer
—

—

—

—

—

—

Total
26

$
1,222

$
1,222

24

$
2,747

$
2,747