XML 34 R22.htm IDEA: XBRL DOCUMENT

Allowance For Credit Losses (Tables)

6 Months Ended

Jun. 30, 2020

Financing Receivable, Allowance for Credit Loss

The following table summarizes the activity in the allowance for credit losses, by portfolio loan classification, for the six months ended June 30, 2020 and 2019 (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.


	Commercial and		Commercial		Residential						DDA
	Industrial		Real Estate		Real Estate		Home Equity		Consumer		Overdrafts		Total
Six months ended June 30, 2020
Beginning balance	$	2,059	$	2,606	$	3,448	$	1,187	$	975	$	1,314	$	11,589
Impact of adopting CECL	1,715		3,254		2,139		(598)		(810)		60		5,760
Charge-offs	(77)		(422)		(859)		(206)		(91)		(1,162)		(2,817)
Recoveries	14		331		103		56		141		800		1,445
Provision for credit losses	2,555		4,321		2,492		208		(95)		(259)		9,222
Ending balance	$	6,266	$	10,090	$	7,323	$	647	$	120	$	753	$	25,199

Six months ended June 30, 2019
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 for credit losses	(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

Three months ended June 30, 2020
Beginning balance	$	5,855	$	9,389	$	6,958	$	702	$	233	$	1,256	24,393
Charge-offs	—		(39)		(376)		(161)		(36)		(459)		(1,071)
Recoveries	5		128		8		9		128		349		627
(Recovery of) provision	406		612		733		97		(205)		(393)		1,250
Ending balance	$	6,266	$	10,090	$	7,323	$	647	$	120	$	753	$	25,199

Three months ended June 30, 2019
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

Financing Receivable, Nonaccrual

The following tables present the amortized cost basis of loans on non-accrual status and loans past due over 90 days still accruing as of June 30, 2020 (in thousands):


	Non-accrual With No		Non-accrual With		Loans Past Due
	Allowance for		Allowance for		Over 90 Days
	Credit Losses		Credit Losses		Still Accruing
Commercial & Industrial	$	207	$	880	$	—

1-4 Family	—		2,212		—
Hotels	—		2,748		—
Multi-family	—		—		—
Non Residential Non-Owner Occupied	—		346		3
Non Residential Owner Occupied	2,521		888		—
Commercial Real Estate	2,521		6,194		3

Residential Real Estate	232		3,245		4
Home Equity	—		265		61
Consumer	—		—		—
Total	$	2,960	$	10,584	$	68

The following table presents the Company's loans on non-accrual status and loans past due over 90 days still accruing as of December 31, 2019 (in thousands):


			Loans Past Due
			Over 90 Days
	Non-accrual		Still Accruing
Commercial and industrial	$	1,182	$	184
Commercial real estate	6,384		—
Residential real estate	3,393		83
Home equity	531		—
Consumer	—		—
Total	$	11,490	$	267

Impaired Financing Receivables

The following table presents the amortized cost basis of collateral-dependent loans as of June 30, 2020 (in thousands). Changes in the fair value of the collateral for collateral-dependent loans are reported as credit loss expense or a reversal of credit loss expense in the period of change.


	Secured by
	Real Estate		Equipment
Commercial and industrial	$	207	$	—

1-4 Family	—		—
Hotels	2,634		—
Multi-family	—		—
Non Residential Non-Owner Occupied	—		—
Non Residential Owner Occupied	2,520		—
Commercial real estate	5,154		—

Total	$	5,361	$	—

The following table presents the Company’s impaired loans, by class (in thousands) as of December 31, 2019. The difference between the unpaid principal balance and the recorded investment generally reflects amounts that have been previously charged-off. There were no impaired residential, home equity, or consumer loans.


	December 31, 2019
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
With no related allowance recorded:
Commercial and industrial	$	501	$	501	$	—
Commercial real estate	3,546		3,572		—
Total	$	4,047	$	4,073	$	—

With an allowance recorded:
Commercial and industrial	$	—	$	—	$	—
Commercial real estate	2,644		2,644		87
Total	$	2,644	$	2,644	$	87

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), for the three and six months ended June 30, 2019:


	Three months ended June 30, 2019						Six months ended June 30, 2019
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
With no related allowance recorded:
Commercial and industrial	$	589	—		$	603	$	—
Commercial real estate	3,614		2		5,067		38
Total	$	4,203	$	2	$	5,670	$	38

With an allowance recorded:
Commercial and industrial	$	—	$	—	$	—	$	—
Commercial real estate	5,667		76		4,326		106
Total	$	5,667	$	76	$	4,326	$	106

Financing Receivable, Past Due

The following table presents the aging of the amortized cost basis in past-due loans as of June 30, 2020 by class of loan (in thousands):


	30-59		60-89		90+		Total		Current		Total
	Past Due		Past Due		Past Due		Past Due		Loans		Loans
Commercial and industrial	$	130	$	30	$	—	$	160	$	368,962	$	369,122

1-4 Family	753		—		—		753		123,061		123,814
Hotels	—		—		—		—		295,179		295,179
Multi-family	—		—		—		—		204,580		204,580
Non Residential Non-Owner Occupied	—		—		3		3		628,625		628,628
Non Residential Owner Occupied	161		—		—		161		215,311		215,472
Commercial real estate	914		—		3		917		1,466,756		1,467,673

Residential real estate	3,923		1,334		4		5,261		1,625,890		1,631,151
Home Equity	223		108		61		392		142,280		142,672
Consumer	67		—		—		67		52,211		52,278
Overdrafts	272		1		—		273		2,427		2,700
Total	$	5,529	$	1,473	$	68	$	7,070	$	3,658,526	$	3,665,596

The following presents an aging analysis of the Company's past-due loans, by class, as of December 31, 2019 (in thousands):


	30-59		60-89		90+		Total		Current		Total
	Past Due		Past Due		Past Due		Past Due		Loans		Loans
Commercial and industrial	$	243	$	31	$	184	$	458	$	307,557	$	308,015
Commercial real estate	1,514		66		—		1,580		1,458,157		1,459,737
Residential real estate	5,758		1,643		83		7,484		1,632,912		1,640,396
Home equity	840		116		—		956		147,972		148,928
Consumer	156		32		—		188		54,075		54,263
Overdrafts	644		86		—		730		4,030		4,760
Total	$	9,155	$	1,974	$	267	$	11,396	$	3,604,703	$	3,616,099

Financing Receivable, Troubled Debt Restructuring

The following tables set forth the Company’s TDRs (in thousands). Substantially all of the Company's TDRs are accruing interest.


	June 30, 2020		December 31, 2019
Commercial and industrial	$	—	$	—

1-4 Family	126		N/R
Hotels	2,634		N/R
Multi-family	1,921		N/R
Non Residential Non-Owner Occupied	—		N/R
Non Residential Owner Occupied	234		N/R
Commercial real estate	4,915		4,973

Residential real estate	20,631		21,029
Home equity	2,138		3,628
Consumer	185		—
Total	$	27,869	$	29,630
N/R = Not reported. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326, while prior period amounts continue to be reported in accordance with previously applicable GAAP.

The following table presents loans by class, modified as TDRs, that occurred during the six months ended June 30, 2020 and 2019, respectively (dollars in thousands):


	June 30, 2020								June 30, 2019
		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	—	$	—	$	—	—	$	—	$	—

1-4 Family	—	—		—		N/R	N/R		N/R
Hotels	—	—		—		N/R	N/R		N/R
Multi-family	—	—		—		N/R	N/R		N/R
Non Owner Non-Owner Occupied	—	—		—		N/R	N/R		N/R
Non Owner Owner Occupied	—	—		—		N/R	N/R		N/R
Commercial real estate	—	—		—		—	—		—

Residential real estate	24	1,720		1,716		27	2,066		2,066
Home equity	2	70		70		7	194		194
Consumer	—	—		—		—	—		—
Total	26	$	1,790	$	1,786	34	$	2,260	$	2,260
N/R = Not reported. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326, while prior period amounts continue to be reported in accordance with previously applicable GAAP.

Financing Receivable, Credit Quality Indicators

Based on the most recent analysis performed, the risk category of loans by class of loans at June 30, 2020 is as follows (in thousands):


													Revolving
	Term Loans																Loans
	Amortized Cost Basis by Origination Year and Risk Level																Amortized
	2020		2019		2018		2017		2016		Prior		Cost Basis		Total
Commercial and industrial
Pass	$	74,977	$	74,675	$	63,750	$	38,259	$	10,177	$	11,707	$	62,386	$	335,931
Special mention	85		46		18		61		—		441		211		862
Substandard	64		830		1,196		816		8,729		2,195		18,499		32,329
Total	$	75,126	$	75,551	$	64,964	$	39,136	$	18,906	$	14,343	$	81,096	$	369,122


													Revolving
	Term Loans																Loans
	Amortized Cost Basis by Origination Year and Risk Level																Amortized
	2020		2019		2018		2017		2016		Prior		Cost Basis		Total
Commercial real estate -
Total
Pass	$	172,741	$	343,898	$	200,306	$	165,468	$	164,439	$	346,209	$	27,105	$	1,420,166
Special mention	—		5,156		1,222		691		359		6,211		—		13,639
Substandard	220		1,655		4,596		3,927		9,919		13,144		407		33,868
Total	$	172,961	$	350,709	$	206,124	$	170,086	$	174,717	$	365,564	$	27,512	$	1,467,673






Commercial real estate -
1-4 Family
Pass	$	19,584	$	21,409	$	10,445	$	8,686	$	6,918	$	37,060	$	9,734	$	113,836
Special mention	—		—		—		26		334		3,053		—		3,413
Substandard	—		229		—		952		109		5,268		7		6,565
Total	$	19,584	$	21,638	$	10,445	$	9,664	$	7,361	$	45,381	$	9,741	$	123,814






Commercial real estate -
Hotels
Pass	$	14,655	$	110,833	$	35,038	$	49,483	$	21,518	$	56,378	$	—	$	287,905
Substandard	—		—		—		—		4,526		2,748		—		7,274
Total	$	14,655	$	110,833	$	35,038	$	49,483	$	26,044	$	59,126	$	—	$	295,179






Commercial real estate -
Multi-family
Pass	$	57,954	$	57,159	$	2,836	$	22,528	$	32,957	$	27,812	$	770	$	202,016
Special mention	—		1,921		561		—		—		—		—		2,482
Substandard	—		—		—		—		—		82		—		82
Total	$	57,954	$	59,080	$	3,397	$	22,528	$	32,957	$	27,894	$	770	$	204,580






Commercial real estate -
Non Residential Non-Owner Occupied
Pass	$	69,473	$	120,792	$	121,420	$	57,873	$	81,033	$	160,184	$	11,318	$	622,093
Special mention	—		316		602		574		—		595		—		2,087
Substandard	58		98		1,181		78		1,446		1,347		240		4,448
Total	$	69,531	$	121,206	$	123,203	$	58,525	$	82,479	$	162,126	$	11,558	$	628,628






Commercial real estate -
Non Residential Owner Occupied
Pass	$	11,076	$	33,705	$	30,567	$	26,899	$	22,012	$	64,777	$	5,279	$	194,315
Special mention	—		2,919		58		91		24		2,563		—		5,655
Substandard	162		1,329		3,415		2,896		3,839		3,700		161		15,502
Total	$	11,238	$	37,953	$	34,040	$	29,886	$	25,875	$	71,040	$	5,440	$	215,472


													Revolving
	Term Loans																Loans
	Amortized Cost Basis by Origination Year and Risk Level																Amortized
	2020		2019		2018		2017		2016		Prior		Cost Basis		Total
Residential real estate
Performing	$	197,377	$	281,064	$	223,330	$	165,437	$	129,448	$	507,921	$	123,143	$	1,627,720
Non-performing	—		668		—		124		212		2,374		53		3,431
Total	$	197,377	$	281,732	$	223,330	$	165,561	$	129,660	$	510,295	$	123,196	$	1,631,151






Home equity
Performing	$	5,054	$	7,570	$	7,121	$	2,733	$	2,121	$	12,861	$	105,047	$	142,507
Non-performing	—		—		—		—		—		—		165		165
Total	$	5,054	$	7,570	$	7,121	$	2,733	$	2,121	$	12,861	$	105,212	$	142,672






Consumer
Performing	$	9,689	$	18,922	$	12,199	$	4,492	$	2,485	$	2,284	$	2,207	$	52,278
Non-performing	—		—		—		—		—		—		—		—
Total	$	9,689	$	18,922	$	12,199	$	4,492	$	2,485	$	2,284	$	2,207	$	52,278

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
December 31, 2019
Pass	$	276,847	$	1,408,644	$	1,685,491
Special mention	2,472		13,838		16,310
Substandard	28,696		37,255		65,951
Total	$	308,015	$	1,459,737	$	1,767,752

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


	Performing		Non-Performing		Total
December 31, 2019
Residential real estate	$	1,636,920	$	3,476	$	1,640,396
Home equity	148,397		531		148,928
Consumer	54,263		—		54,263
Total	$	1,839,580	$	4,007	$	1,843,587