XML 64 R14.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Allowance for Loan Losses
 12 Months Ended
Dec. 31, 2019
Receivables [Abstract]  
Allowance for Loan Losses Allowance for Loan Losses
The allowance for loan losses is management’s best estimate of incurred losses inherent in the loan portfolio as of the balance sheet date. The Corporation uses a methodology to systematically measure the amount of estimated loan loss exposure inherent in the loan portfolio for purposes of establishing a sufficient allowance for loan losses. The methodology includes: (1) the identification of loss allocations for individual loans deemed to be impaired and (2) the application of loss allocation factors for non-impaired loans based on historical loss experience and estimated loss emergence period, with adjustments for various exposures that management believes are not adequately represented by historical loss experience.

The following table presents the activity in the allowance for loan losses for the year ended December 31, 2019:
(Dollars in thousands)
Commercial
 
 
Consumer
 
 
 
CRE
C&I
Total Commercial
Residential Real Estate
Home Equity
Other
Total Consumer
Total
Beginning Balance

$15,381


$5,847


$21,228


$3,987


$1,603


$254


$1,857


$27,072

Charge-offs
(1,028
)
(21
)
(1,049
)
(486
)
(390
)
(95
)
(485
)
(2,020
)
Recoveries
125

168

293

—

72

22

94

387

Provision
263

(2,073
)
(1,810
)
3,114

105

166

271

1,575

Ending Balance

$14,741


$3,921


$18,662


$6,615


$1,390


$347


$1,737


$27,014



The following table presents the activity in the allowance for loan losses for the year ended December 31, 2018:
(Dollars in thousands)
Commercial
 
 
Consumer
 
 
 
CRE
C&I
Total Commercial
Residential Real Estate
Home Equity
Other
Total Consumer
Total
Beginning Balance

$12,729


$5,580


$18,309


$5,427


$2,412


$340


$2,752


$26,488

Charge-offs
(627
)
(10
)
(637
)
(250
)
(193
)
(107
)
(300
)
(1,187
)
Recoveries
25

119

144

21

29

27

56

221

Provision
3,254

158

3,412

(1,211
)
(645
)
(6
)
(651
)
1,550

Ending Balance

$15,381


$5,847


$21,228


$3,987


$1,603


$254


$1,857


$27,072



The following table presents the activity in the allowance for loan losses for the year ended December 31, 2017:
(Dollars in thousands)
Commercial
 
 
Consumer
 
 
 
CRE
C&I
Total Commercial
Residential Real Estate
Home Equity
Other
Total Consumer
Total
Beginning Balance

$11,166


$6,992


$18,158


$5,252


$1,889


$705


$2,594


$26,004

Charge-offs
(1,867
)
(336
)
(2,203
)
(74
)
(79
)
(106
)
(185
)
(2,462
)
Recoveries
82

169

251

39

33

23

56

346

Provision
3,348

(1,245
)
2,103

210

569

(282
)
287

2,600

Ending Balance

$12,729


$5,580


$18,309


$5,427


$2,412


$340


$2,752


$26,488



The following table presents the Corporation’s loan portfolio and associated allowance for loan losses by portfolio segment and by impairment methodology:
(Dollars in thousands)
December 31, 2019
 
December 31, 2018
 
 
 
Related
Allowance
 
 
 
Related
Allowance
 
Loans
 
 
Loans
 
Loans Individually Evaluated For Impairment
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
Commercial real estate

$603

 

$—

 

$925

 

$—

Commercial & industrial
657

 
580

 
4,714

 
—

Total commercial
1,260

 
580

 
5,639

 
—

Residential Real Estate:
 
 
 
 
 
 
 
Residential real estate
14,654

 
95

 
9,710

 
100

Consumer:
 
 
 
 
 
 
 
Home equity
1,763

 
291

 
1,445

 
24

Other
106

 
2

 
22

 
3

Total consumer
1,869

 
293

 
1,467

 
27

Subtotal
17,783

 
968

 
16,816

 
127

Loans Collectively Evaluated For Impairment
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
Commercial real estate
1,546,969

 
14,741

 
1,391,483

 
15,381

Commercial & industrial
584,632

 
3,341

 
615,990

 
5,847

Total commercial
2,131,601

 
18,082

 
2,007,473

 
21,228

Residential Real Estate:
 
 
 
 
 
 
 
Residential real estate
1,434,436

 
6,520

 
1,350,677

 
3,887

Consumer:
 
 
 
 
 
 
 
Home equity
289,111

 
1,099

 
279,182

 
1,579

Other
20,068

 
345

 
26,212

 
251

Total consumer
309,179

 
1,444

 
305,394

 
1,830

Subtotal
3,875,216

 
26,046

 
3,663,544

 
26,945

Total

$3,892,999

 

$27,014

 

$3,680,360

 

$27,072