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

$
4,495

$
4,116

$
1,268

$
319

$
1,708

$
15,966

Charge-offs
(68
)
(394
)
(922
)
(160
)
(478
)
(1,985
)
(4,007
)
Recoveries
183

614

282

—

211

1,112

2,402

(Recovery of) provision
(1,471
)
(1,619
)
162

85

591

1,077

(1,175
)
Ending balance
$
2,704

$
3,096

$
3,638

$
1,193

$
643

$
1,912

$
13,186

 
 
 
 
 
 
 
 
Nine months ended September 30, 2018
 

 

 

 

 

 

 

Allowance for loan losses
 

 

 

 

 

 

 

Beginning balance
$
4,571

$
6,183

$
5,212

$
1,138

$
62

$
1,670

$
18,836

Charge-offs
(724
)
(349
)
(464
)
(219
)
(560
)
(1,976
)
(4,292
)
Recoveries
1,625

538

275

—

130

1,109

3,677

(Recovery of) provision
(1,583
)
(1,775
)
(557
)
385

709

911

(1,910
)
Ending balance
$
3,889

$
4,597

$
4,466

$
1,304

$
341

$
1,714

$
16,311

 
 
 
 
 
 
 
 
Three months ended September 30, 2019
 
 
 
 
 
 
 
Allowance for loan losses
Beginning balance
$
2,796

$
3,469

$
3,959

$
1,211

$
509

$
1,851

$
13,795

Charge-offs
(17
)
(216
)
(291
)
(43
)
(182
)
(772
)
(1,521
)
Recoveries
43

7

157

—

68

363

638

(Recovery of) provision
(118
)
(164
)
(187
)
25

248

470

274

Ending balance
$
2,704

$
3,096

$
3,638

$
1,193

$
643

$
1,912

$
13,186

 
 
 
 
 
 
 
 
Three months ended September 30, 2018
 

 

 

 

 

 

 

Allowance for loan losses
 

 

 

 

 

 

 

Beginning balance
$
3,727

$
5,930

$
4,579

$
1,160

$
268

$
1,212

$
16,876

Charge-offs
—

(74
)
(237
)
(115
)
(206
)
(704
)
(1,336
)
Recoveries
147

166

116

—

25

344

798

(Recovery of) provision
15

(1,425
)
8

259

254

862

(27
)
Ending balance
$
3,889

$
4,597

$
4,466

$
1,304

$
341

$
1,714

$
16,311

 
 
 
 
 
 
 
 
As of September 30, 2019
 

 

 

 

 

 

 

Allowance for loan losses
 

 

 

 

 

 

 

Evaluated for impairment:
 

 

 

 

 

 

 

Individually
$
—

$
884

$
—

$
—

$
—

$
—

$
884

Collectively
2,429

2,156

3,638

1,193

636

1,912

11,964

Acquired with deteriorated credit quality
275

56

—

—

7

—

338

Total
$
2,704

$
3,096

$
3,638

$
1,193

$
643

$
1,912

$
13,186

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Loans
 

 

 

 

 

 

 

Evaluated for impairment:
 

 

 

 

 

 

 

Individually
$
501

$
9,282

$
—

$
—

$
—

$
—

$
9,783

Collectively
295,183

1,413,933

1,641,254

150,808

54,695

4,638

3,560,511

Acquired with deteriorated credit quality
1,243

8,768

2,162

—

104

—

12,277

Total
$
296,927

$
1,431,983

$
1,643,416

$
150,808

$
54,799

$
4,638

$
3,582,571

 
 
 
 
 
 
 
 
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
September 30, 2019
 
 
 
Pass
$
262,591

$
1,374,974

$
1,637,565

Special mention
2,373

13,765

16,138

Substandard
31,963

43,244

75,207

Doubtful
—

—

—

Total
$
296,927

$
1,431,983

$
1,728,910

 
 
 
 
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
September 30, 2019
 
 
 
Residential real estate
$
1,640,496

$
2,920

$
1,643,416

Home equity
150,298

510

150,808

Consumer
54,799

—

54,799

DDA overdrafts
4,638

—

4,638

Total
$
1,850,231

$
3,430

$
1,853,661

 
 
 
 
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):
 
 
September 30, 2019
 
Accruing
 
 
 
Current
30-59 days
60-89 days
Over 90 days
Non-accrual
Total
Residential real estate
$
1,633,987

$
5,817

$
692

$
350

$
2,570

$
1,643,416

Home equity
149,544

749

6

40

469

150,808

Commercial and industrial
294,341

415

50

62

2,059

296,927

Commercial real estate
1,420,608

1,276

—

—

10,099

1,431,983

Consumer
54,675

124

—

—

—

54,799

DDA overdrafts
4,012

613

13

—

—

4,638

Total
$
3,557,167

$
8,994

$
761

$
452

$
15,197

$
3,582,571

 
 
 
 
 
 
 
 
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.

 
September 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
$
501

$
501

$
—

$
651

$
651

$
—

Commercial real estate
3,534

3,559

—

6,870

6,895

—

Total
$
4,035

$
4,060

$
—

$
7,521

$
7,546

$
—

 
 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
 
 
Commercial and industrial
$
—

$
—

$
—

$
—

$
—

$
—

Commercial real estate
5,748

5,748

884

2,985

2,985

428

Total
$
5,748

$
5,748

$
884

$
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):
 
Nine months ended September 30,
 
2019
2018
 
Average
Interest
Average
Interest
 
Recorded
Income
Recorded
Income
 
Investment
Recognized
Investment
Recognized
With no related allowance recorded:
 
 
 
 
Commercial and industrial
$
570

—

$
910

$
—

Commercial real estate
4,558

41

3,873

7

Total
$
5,128

$
41

$
4,783

$
7

 
 
 
 
 
With an allowance recorded:
 
 
 
 
Commercial and industrial
$
—

$
—

$
—

$
—

Commercial real estate
4,800

136

5,730

179

Total
$
4,800

$
136

$
5,730

$
179
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.
 
September 30, 2019
December 31, 2018
 
 
Total
Total
Commercial and industrial
$
83

$
98

Commercial real estate
8,100

8,205

Residential real estate
21,320

23,521

Home equity
3,034

3,030

Consumer
—

—

Total
$
32,537

$
34,854

 
 
New TDRs
 
Nine months ended September 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
29

2,076

2,076

22

1,465

1,465

Home equity
8

213

213

9

200

200

Consumer
—

—

—

—

—

—

Total
37

$
2,289

$
2,289

31

$
1,665

$
1,665