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Allowance For Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2019
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, 2019 and 2018 (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, 2019 and December 31, 2018 (in thousands). 
 
Commercial and
Commercial
Residential
 
 
DDA
 
 
Industrial
Real Estate
Real Estate
Home Equity
Consumer
Overdrafts
Total
Six months ended June 30, 2019
 
 
 
 
 
 
 
Allowance for loan losses
Beginning balance
$
4,060

$
4,495

$
4,116

$
1,268

$
319

$
1,708

$
15,966

Charge-offs
(51
)
(178
)
(631
)
(117
)
(296
)
(1,213
)
(2,486
)
Recoveries
140

607

125

—

143

749

1,764

(Recovery of) provision
(1,353
)
(1,455
)
349

60

343

607

(1,449
)
Ending balance
$
2,796

$
3,469

$
3,959

$
1,211

$
509

$
1,851

$
13,795

 
 
 
 
 
 
 
 
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

 
 
 
 
 
 
 
 
Three months ended June 30, 2019
 
 
 
 
 
 
 
Allowance for loan losses
Beginning balance
$
2,970

$
4,640

$
3,820

$
1,248

$
468

$
1,500

$
14,646

Charge-offs
(51
)
(133
)
(303
)
(71
)
(111
)
(588
)
(1,257
)
Recoveries
5

575

50

—

46

330

1,006

(Recovery of) provision
(128
)
(1,613
)
392

34

106

609

(600
)
Ending balance
$
2,796

$
3,469

$
3,959

$
1,211

$
509

$
1,851

$
13,795

 
 
 
 
 
 
 
 
Three months ended June 30, 2018
 

 

 

 

 

 

 

Allowance for loan losses
 

 

 

 

 

 

 

Beginning balance
$
4,763

$
5,769

$
4,943

$
1,200

$
212

$
1,494

$
18,381

Charge-offs
(385
)
(118
)
(96
)
(33
)
(255
)
(636
)
(1,523
)
Recoveries
1,475

149

53

—

59

345

2,081

(Recovery of) provision
(2,126
)
130

(321
)
(7
)
252

9

(2,063
)
Ending balance
$
3,727

$
5,930

$
4,579

$
1,160

$
268

$
1,212

$
16,876

 
 
 
 
 
 
 
 
As of June 30, 2019
 

 

 

 

 

 

 

Allowance for loan losses
 

 

 

 

 

 

 

Evaluated for impairment:
 

 

 

 

 

 

 

Individually
$
—

$
626

$
—

$
—

$
—

$
—

$
626

Collectively
2,795

2,787

3,959

1,211

502

1,851

13,105

Acquired with deteriorated credit quality
1

56

—

—

7

—

64

Total
$
2,796

$
3,469

$
3,959

$
1,211

$
509

$
1,851

$
13,795

 
 
 
 
 
 
 
 
Loans
 

 

 

 

 

 

 

Evaluated for impairment:
 

 

 

 

 

 

 

Individually
$
582

$
9,309

$
—

$
—

$
—

$
—

$
9,891

Collectively
287,060

1,359,010

1,642,334

150,676

53,252

3,922

3,496,254

Acquired with deteriorated credit quality
1,161

9,797

2,160

—

104

—

13,222

Total
$
288,803

$
1,378,116

$
1,644,494

$
150,676

$
53,356

$
3,922

$
3,519,367

 
 
 
 
 
 
 
 
As of December 31, 2018
 

 

 

 

 

 

 

Allowance for loan losses
 

 

 

 

 

 

 

Evaluated for impairment:
 

 

 

 

 

 

 

Individually
$
—

$
428

$
—

$
—

$
—

$
—

$
428

Collectively
4,059

4,015

4,116

1,268

312

1,708

15,478

Acquired with deteriorated credit quality
1

52

—

—

7

—

60

Total
$
4,060

$
4,495

$
4,116

$
1,268

$
319

$
1,708

$
15,966

 
 
 
 
 
 
 
 
Loans
 

 

 

 

 

 

 

Evaluated for impairment:
 

 

 

 

 

 

 

Individually
$
651

$
9,855

$
—

$
—

$
—

$
—

$
10,506

Collectively
284,018

1,433,674

1,633,241

153,496

51,077

6,328

3,561,834

Acquired with deteriorated credit quality
1,645

11,413

2,097

—

113

—

15,268

Total
$
286,314

$
1,454,942

$
1,635,338

$
153,496

$
51,190

$
6,328

$
3,587,608
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, 2019
 
 
 
Pass
$
254,449

$
1,322,276

$
1,576,725

Special mention
2,293

10,023

12,316

Substandard
32,061

45,817

77,878

Doubtful
—

—

—

Total
$
288,803

$
1,378,116

$
1,666,919

 
 
 
 
December 31, 2018
 

 

 

Pass
$
250,856

$
1,402,821

$
1,653,677

Special mention
27,886

5,696

33,582

Substandard
7,572

46,425

53,997

Doubtful
—

—

—

Total
$
286,314

$
1,454,942

$
1,741,256
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, 2019
 
 
 
Residential real estate
$
1,642,063

$
2,431

$
1,644,494

Home equity
150,499

177

150,676

Consumer
53,356

—

53,356

DDA overdrafts
3,921

1

3,922

Total
$
1,849,839

$
2,609

$
1,852,448

 
 
 
 
December 31, 2018
 
 
 
Residential real estate
$
1,630,892

$
4,446

$
1,635,338

Home equity
153,334

162

153,496

Consumer
51,188

2

51,190

DDA overdrafts
6,322

6

6,328

Total
$
1,841,736

$
4,616

$
1,846,352
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, 2019
 
Accruing
 
 
 
Current
30-59 days
60-89 days
Over 90 days
Non-accrual
Total
Residential real estate
$
1,634,837

$
6,262

$
964

$
77

$
2,354

$
1,644,494

Home equity
150,193

283

23

16

161

150,676

Commercial and industrial
286,488

161

5

—

2,149

288,803

Commercial real estate
1,369,886

972

54

—

7,204

1,378,116

Consumer
53,184

162

10

—

—

53,356

DDA overdrafts
3,435

478

8

1

—

3,922

Total
$
3,498,023

$
8,318

$
1,064

$
94

$
11,868

$
3,519,367

 
 
 
 
 
 
 
 
December 31, 2018
 
Accruing
 
 
 
Current
30-59 days
60-89 days
Over 90 days
Non-accrual
Total
Residential real estate
$
1,621,073

$
8,607

$
1,213

$
170

$
4,275

$
1,635,338

Home equity
152,083

1,240

11

24

138

153,496

Commercial and industrial
284,140

397

49

52

1,676

286,314

Commercial real estate
1,445,896

487

94

4

8,461

1,454,942

Consumer
50,894

253

41

1

1

51,190

DDA overdrafts
5,840

467

15

6

—

6,328

Total
$
3,559,926

$
11,451

$
1,423

$
257

$
14,551

$
3,587,608
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, 2019
December 31, 2018
 
 
Unpaid
 
 
Unpaid
 
 
Recorded
Principal
Related
Recorded
Principal
Related
 
Investment
Balance
Allowance
Investment
Balance
Allowance
With no related allowance recorded:
 
 
 
 
 
 
Commercial and industrial
$
582

$
582

$
—

$
651

$
651

$
—

Commercial real estate
3,642

3,667

—

6,870

6,895

—

Total
$
4,224

$
4,249

$
—

$
7,521

$
7,546

$
—

 
 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
 
 
Commercial and industrial
$
—

$
—

$
—

$
—

$
—

$
—

Commercial real estate
5,667

5,667

626

2,985

2,985

428

Total
$
5,667

$
5,667

$
626

$
2,985

$
2,985

$
428
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,
 
2019
2018
 
Average
Interest
Average
Interest
 
Recorded
Income
Recorded
Income
 
Investment
Recognized
Investment
Recognized
With no related allowance recorded:
 
 
 
 
Commercial and industrial
$
603

—

$
1,036

$
—

Commercial real estate
5,067

38

3,715

6

Total
$
5,670

$
38

$
4,751

$
6

 
 
 
 
 
With an allowance recorded:
 
 
 
 
Commercial and industrial
$
—

$
—

$
—

$
—

Commercial real estate
4,326

106

5,741

110

Total
$
4,326

$
106

$
5,741

$
110
Schedule Of Troubled Debt Restructurings
The following tables set forth the Company’s TDRs (in thousands). Substantially all of the Company's TDRs are accruing interest.
 
June 30, 2019
December 31, 2018
 
 
Total
Total
Commercial and industrial
$
83

$
98

Commercial real estate
8,044

8,205

Residential real estate
22,373

23,521

Home equity
3,062

3,030

Consumer
—

—

Total
$
33,562

$
34,854

 
 
New TDRs
 
Six months ended June 30,
 
2019
2018
 
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
27

2,066

2,066

17

1,028

1,028

Home equity
7

194

194

9

194

194

Consumer
—

—

—

—

—

—

Total
34

$
2,260

$
2,260

26

$
1,222

$
1,222