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Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2015
Receivables [Abstract]  
Composition of Loan Portfolio, Excluding Residential Loans Held for Sale
The composition of the Company’s loan portfolio, excluding residential loans held for sale, at December 31, 2015 and 2014 was as follows:
 
December 31,
  
2015
 
2014
Residential real estate loans
$
821,074

 
$
585,996

Commercial real estate loans
927,951

 
640,661

Commercial loans
297,721

 
257,515

Home equity loans
348,634

 
271,709

Consumer loans
17,953

 
17,257

HPFC(1)
77,243

 
—

Deferred loan fees, net
(370
)
 
(528
)
Total loans
$
2,490,206

 
$
1,772,610


(1)
HPFC is a wholly-owned subsidiary of the Bank that was acquired as part of the SBM acquisition.
Schedule of Loans Made to Related Parties
Loans, including any unused lines of credit, to related parties were as follows:
 
December 31,
  
2015
 
2014
Balance at beginning of year
$
17,469

 
$
17,428

Loans made/advanced and additions
374

 
251

Repayments and reductions
(1,215
)
 
(210
)
Balance at end of year
$
16,628

 
$
17,469
Activity in Allowance for Loan Losses by Portfolio Segment
The following tables presents the activity in the ALL and select loan information by portfolio segment for the years ended December 31, 2015, 2014, and 2013:
 
Residential Real Estate
 
Commercial Real Estate
 
Commercial
 
Home
Equity
 
Consumer
 
HPFC
 
Unallocated
 
Total
For The Year Ended
  December 31, 2015:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALL:
  

 
  

 
  

 
  

 
  

 
 
 
  

 
  

Beginning balance
$
4,899

 
$
4,482

 
$
6,823

 
$
2,247

 
$
281

 
$
—

 
$
2,384

 
$
21,116

Loans charged off
(801
)
 
(481
)
 
(655
)
 
(525
)
 
(154
)
 
—

 
—

 
(2,616
)
Recoveries
55

 
74

 
389

 
188

 
22

 
—

 
—

 
728

Provision (credit)(1)
392

 
2,117

 
924

 
821

 
44

 
24

 
(2,384
)
 
1,938

Ending balance
$
4,545

 
$
6,192

 
$
7,481

 
$
2,731

 
$
193

 
$
24

 
$
—

 
$
21,166

ALL balance attributable loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
818

 
$
710

 
$
166

 
$
245

 
$
7

 
$
—

 
$
—

 
$
1,946

Collectively evaluated for impairment
3,727

 
5,482

 
7,315

 
2,486

 
186

 
24

 
—

 
19,220

Total ending ALL
$
4,545

 
$
6,192

 
$
7,481

 
$
2,731

 
$
193

 
$
24

 
$
—

 
$
21,166

Loans:
  

 
  

 
  

 
  

 
  

 
 
 
  

 
  

Individually evaluated for impairment
$
10,567

 
$
5,744

 
$
4,820

 
$
1,933

 
$
118

 
$
—

 
$
—

 
$
23,182

Collectively evaluated for impairment
810,050

 
922,207

 
292,901

 
346,701

 
17,835

 
77,330

 
—

 
2,467,024

Total loan balances
$
820,617

 
$
927,951

 
$
297,721

 
$
348,634

 
$
17,953

 
$
77,330

 
$
—

 
$
2,490,206

For The Year Ended December 31, 2014:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALL:
  

 
  

 
  

 
  

 
  

 
 
 
  

 
  

Beginning balance
$
5,603

 
$
4,374

 
$
6,220

 
$
2,403

 
$
319

 
$
—

 
$
2,671

 
$
21,590

Loans charged off
(785
)
 
(361
)
 
(1,544
)
 
(611
)
 
(143
)
 
—

 
—

 
(3,444
)
Recoveries
165

 
135

 
395

 
19

 
32

 
—

 
—

 
746

Provision (credit)(1)
(84
)
 
334

 
1,752

 
436

 
73

 
—

 
(287
)
 
2,224

Ending balance
$
4,899

 
$
4,482

 
$
6,823

 
$
2,247

 
$
281

 
$
—

 
$
2,384

 
$
21,116

ALL balance attributable loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
1,220

 
$
251

 
$
168

 
$
496

 
$
104

 
$
—

 
$
—

 
$
2,239

Collectively evaluated for impairment
3,679

 
4,231

 
6,655

 
1,751

 
177

 
—

 
2,384

 
18,877

Total ending ALL
$
4,899

 
$
4,482

 
$
6,823

 
$
2,247

 
$
281

 
$
—

 
$
2,384

 
$
21,116

Loans:
  

 
  

 
  

 
  

 
  

 
 
 
  

 
  

Individually evaluated for impairment
$
9,656

 
$
7,658

 
$
1,853

 
$
1,741

 
$
271

 
$
—

 
$
—

 
$
21,179

Collectively evaluated for impairment
575,812

 
633,003

 
255,662

 
269,968

 
16,986

 
—

 
—

 
1,751,431

Total loan balances
$
585,468

 
$
640,661

 
$
257,515

 
$
271,709

 
$
17,257

 
$
—

 
$
—

 
$
1,772,610

For The Year Ended December 31, 2013:
Residential Real Estate
 
Commercial Real Estate
 
Commercial
 
Home
Equity
 
Consumer
 
HPFC
 
Unallocated
 
Total
ALL:
  

 
  

 
  

 
  

 
  

 
 
 
  

 
  

Beginning balance
$
6,996

 
$
4,549

 
$
5,933

 
$
2,520

 
$
184

 
$
—

 
$
2,862

 
$
23,044

Loans charged off
(1,059
)
 
(952
)
 
(1,426
)
 
(647
)
 
(190
)
 
—

 
—

 
(4,274
)
Recoveries
35

 
121

 
495

 
56

 
61

 
—

 
—

 
768

Provision (credit)(1)
(369
)
 
656

 
1,218

 
474

 
264

 
—

 
(191
)
 
2,052

Ending balance
$
5,603

 
$
4,374

 
$
6,220

 
$
2,403

 
$
319

 
$
—

 
$
2,671

 
$
21,590

ALL balance attributable loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
1,750

 
$
526

 
$
132

 
$
433

 
$
140

 
$
—

 
$
—

 
$
2,981

Collectively evaluated for impairment
3,853

 
3,848

 
6,088

 
1,970

 
179

 
—

 
2,671

 
18,609

Total ending ALL
$
5,603

 
$
4,374

 
$
6,220

 
$
2,403

 
$
319

 
$
—

 
$
2,671

 
$
21,590

Loans:
  

 
  

 
  

 
  

 
  

 
 
 
  

 
  

Individually evaluated for impairment
$
14,435

 
$
8,864

 
$
2,635

 
$
1,571

 
$
442

 
$
—

 
$
—

 
$
27,947

Collectively evaluated for impairment
555,384

 
532,235

 
176,568

 
271,059

 
17,209

 
—

 
—

 
1,552,455

Total loan balances
$
569,819

 
$
541,099

 
$
179,203

 
$
272,630

 
$
17,651

 
$
—

 
$
—

 
$
1,580,402


(1)
The provision (credit) for loan losses excludes any impact for the change in the reserve for unfunded commitments, which represents management's estimate of the amount required to reflect the probable inherent losses on outstanding letters of credit and unused lines of credit. The reserve for unfunded commitments is presented within accrued interest and other liabilities on the consolidated statements of condition. At December 31, 2015, 2014, and 2013, the reserve for unfunded commitments was $22,000, $17,000 and $21,000, respectively.
Schedule of Provision for Credit Losses
The following table reconciles the years ended December 31, 2015, 2014 and 2013 provision for loan losses to the provision for credit losses as presented on the consolidated statement of income:
 
 
 
For the Years Ended
December 31,
 
 
 
2015
 
2014
 
2013
Provision for loan losses
 
 
$
1,938

 
$
2,224

 
$
2,052

Change in reserve for unfunded commitments
 
 
(2
)
 
(4
)
 
(24
)
Provision for credit losses
 
 
$
1,936

 
$
2,220

 
$
2,028
Credit Risk Exposure Indicators by Portfolio Segment
The following table summarizes credit risk exposure indicators by portfolio segment as of the following dates:
 
 
Residential Real Estate
 
Commercial Real Estate
 
Commercial
 
Home Equity
 
Consumer
 
HPFC
 
Total
December 31, 2015:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass (Grades 1 – 6)
 
$
802,873

 
$
868,664

 
$
281,553

 
$
—

 
$
—

 
$
70,173

 
$
2,023,263

Performing
 
—

 
—

 
—

 
346,701

 
17,835

 
—

 
364,536

Special Mention (Grade 7)
 
3,282

 
20,732

 
7,527

 
—

 
—

 
3,179

 
34,720

Substandard (Grade 8)
 
14,462

 
38,555

 
8,641

 
—

 
—

 
3,978

 
65,636

Non-performing
 
—

 
—

 
—

 
1,933

 
118

 
—

 
2,051

Total
 
$
820,617

 
$
927,951

 
$
297,721

 
$
348,634

 
$
17,953

 
$
77,330

 
$
2,490,206

December 31, 2014:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass (Grades 1 – 6)
 
$
572,589

 
$
606,387

 
$
244,930

 
$
—

 
$
—

 
$
—

 
$
1,423,906

Performing
 
—

 
—

 
—

 
269,968

 
16,986

 
—

 
286,954

Special Mention (Grade 7)
 
3,579

 
4,690

 
6,023

 
—

 
—

 
—

 
14,292

Substandard (Grade 8)
 
9,300

 
29,584

 
6,562

 
—

 
—

 
—

 
45,446

Non-performing
 
—

 
—

 
—

 
1,741

 
271

 
—

 
2,012

Total
 
$
585,468

 
$
640,661

 
$
257,515

 
$
271,709

 
$
17,257

 
$
—

 
$
1,772,610
Loan Aging Analysis by Portfolio Segment (Including Loans Past Due Over Ninety Days and Non Accrual Loans) and Summary of Non Accrual Loans, Which Include Troubled Debt Restructured Loans, and Loans Past Due Over Ninety Days and Accruing
The following is a loan aging analysis by portfolio segment (including loans past due over 90 days and non-accrual loans) and a summary of non-accrual loans, which include TDRs, and loans past due over 90 days and accruing as of the following dates:
 
30 –  59 Days Past Due
 
60 – 89 Days Past Due
 
Greater Than 90 Days
 
Total Past Due
 
Current
 
Total Loans Outstanding
 
Loans > 90 Days Past Due and Accruing
 
Non-Accrual Loans
December 31, 2015:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
$
3,325

 
$
571

 
$
6,077

 
$
9,973

 
$
810,644

 
820,617

 
$
—

 
$
7,253

Commercial real estate
4,219

 
2,427

 
1,584

 
8,230

 
919,721

 
927,951

 
—

 
4,529

Commercial
267

 
550

 
1,002

 
1,819

 
295,902

 
297,721

 
—

 
4,489

Home equity
643

 
640

 
1,505

 
2,788

 
345,846

 
348,634

 
—

 
1,933

Consumer
112

 
7

 
118

 
237

 
17,716

 
17,953

 
—

 
118

HPFC
165

 
—

 
—

 
165

 
77,165

 
77,330

 
—

 
—

Total
$
8,731

 
$
4,195

 
$
10,286

 
$
23,212

 
$
2,466,994

 
$
2,490,206

 
$
—

 
$
18,322

December 31, 2014:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate
$
1,206

 
$
426

 
$
4,531

 
$
6,163

 
$
579,305

 
$
585,468

 
$
—

 
$
6,056

Commercial real estate
1,696

 
—

 
3,791

 
5,487

 
635,174

 
640,661

 
—

 
7,043

Commercial
456

 
269

 
1,139

 
1,864

 
255,651

 
257,515

 
—

 
1,529

Home equity
889

 
88

 
1,129

 
2,106

 
269,603

 
271,709

 
—

 
1,740

Consumer
28

 
—

 
254

 
282

 
16,975

 
17,257

 
—

 
271

Total
$
4,275

 
$
783

 
$
10,844

 
$
15,902

 
$
1,756,708

 
$
1,772,610

 
$
—

 
$
16,639
Troubled Debt Restructuring and Specific Reserve Related to TDRs
The following is a summary of TDRs, by portfolio segment, and the associated specific reserve included within the ALL as of December 31:
 
 
Number of Contracts
 
Recorded Investment
 
Specific Reserve
 
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
Residential real estate
 
22

 
24

 
$
3,398

 
$
3,786

 
$
544

 
$
635

Commercial real estate
 
6

 
7

 
1,459

 
1,702

 
48

 
—

Commercial
 
9

 
9

 
399

 
426

 
11

 
10

Consumer and home equity
 
1

 
1

 
21

 
29

 
—

 
—

Total
 
38

 
41

 
$
5,277

 
$
5,943

 
$
603

 
$
645
Summary of All Troubled Debt Restructuring Loans (Accruing and Non Accruing) by Portfolio Segment
The following is a summary of loans modified as a TDR within the previous 12 months and for which the borrower subsequently defaulted for the periods indicated:
 
2015
 
2014
 
2013
 
Number of Contracts
 
Recorded Investment
 
Number of Contracts
 
Recorded Investment
 
Number of Contracts
 
Recorded Investment
Commercial real estate
—

 
$
—

 
—

 
$
—

 
1

 
$
113

Total
—

 
$
—

 
—

 
$
—

 
1

 
$
113

The following represents loan modifications that occurred for the years ended December 31, 2015, 2014 and 2013 that qualify as TDRs and the type of loan modification made by portfolio segment at December 31:
 
 
Number of Contracts
 
Pre-Modification
Outstanding
Recorded Investment
 
Post-Modification
Outstanding
Recorded Investment
 
Specific Reserve
 
 
2015
 
2014
 
2013
 
2015
 
2014
 
2013
 
2015
 
2014
 
2013
 
2015
 
2014
 
2013
Residential real estate:
 


 


 
 
 


 


 
 
 


 


 
 
 


 


 
 
Maturity concession
 
—

 
1

 
2

 
$
—

 
$
136

 
$
200

 
$
—

 
$
149

 
213

 
$
—

 
$
43

 
$
—

Interest rate and maturity concession
 
—

 
—

 
4

 
—

 
—

 
636

 
—

 
—

 
665

 
—

 
—

 
114

Court ordered
 
1

 
—

 
—

 
74

 
—

 
—

 
78

 
—

 
—

 
27

 
—

 
—

Commercial real estate:
 


 


 
 
 


 


 
 
 


 


 
 
 


 


 
 
Maturity concession
 
—

 
1

 
3

 
—

 
235

 
466

 
—

 
235

 
462

 
—

 
—

 
—

Principal concession
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Commercial:
 


 


 
 
 


 


 
 
 


 


 
 
 


 


 
 
Maturity concession
 
—

 
—

 
4

 
—

 
—

 
335

 
—

 
—

 
335

 
—

 
—

 
—

Interest concession
 
—

 
—

 
1

 
—

 
—

 
19

 
—

 
—

 
19

 
—

 
—

 
—

Court ordered
 
—

 
3

 
—

 
—

 
77

 
—

 
—

 
77

 
—

 
—

 
6

 
—

Home equity:
 


 


 
 
 


 


 
 
 


 


 
 
 


 


 
 
Principal forgiveness and maturity
 
—

 
1

 
—

 
—

 
40

 
—

 
—

 
30

 
—

 
—

 
—

 
—

Total
 
1

 
6

 
14

 
$
74

 
$
488

 
$
1,656

 
$
78

 
$
491


$
1,694

 
$
27

 
$
49

 
$
114
Summary of Impaired Loan Balances and Associated Allowance by Portfolio Segment
Impaired loans consist of non-accrual and TDR loans. All impaired loans are allocated a portion of the allowance to cover potential losses as determined by the internal analysis. The following is a summary of impaired loan balances and the associated allowance by portfolio segment as of and for the years ended December 31, 2015, 2014 and 2013:
 
 
Recorded Investment
 
Unpaid Principal Balance
 
Related Allowance
 
Average Recorded Investment
 
Interest Income Recognized
December 31, 2015:
 
 
 
 
 
 
 
 
 
 
With related allowance recorded:
 
  

 
  

 
  

 
  

 
  

Residential real estate
 
$
5,223

 
$
5,223

 
$
818

 
$
7,888

 
$
112

Commercial real estate
 
2,680

 
2,713

 
710

 
2,424

 
—

Commercial
 
690

 
690

 
166

 
1,949

 
2

Home equity
 
743

 
743

 
245

 
1,305

 
—

Consumer
 
26

 
26

 
7

 
212

 
—

HPFC
 
—

 
—

 
—

 
—

 
—

Ending Balance
 
9,362

 
9,395

 
1,946

 
13,778

 
114

Without related allowance recorded:
 
  

 
  

 
  

 
  

 
  

Residential real estate
 
5,344

 
6,245

 
—

 
1,483

 
8

Commercial real estate
 
3,064

 
3,663

 
—

 
2,544

 
65

Commercial
 
4,130

 
4,336

 
—

 
587

 
17

Home equity
 
1,190

 
1,573

 
—

 
350

 
—

Consumer
 
92

 
168

 
—

 
20

 
—

HPFC
 
—

 
—

 
—

 
—

 
—

Ending Balance
 
13,820

 
15,985

 
—

 
4,984

 
90

Total impaired loans
 
$
23,182

 
$
25,380

 
$
1,946

 
$
18,762

 
$
204

December 31, 2014:
 
 
 
 
 
 
 
 
 
 
With related allowance recorded:
 
  

 
  

 
  

 
  

 
  

Residential real estate
 
$
7,713

 
$
7,713

 
$
1,220

 
$
9,524

 
$
125

Commercial real estate
 
3,419

 
3,419

 
251

 
4,911

 
—

Commercial
 
1,390

 
1,390

 
168

 
2,466

 
8

Home equity
 
1,410

 
1,410

 
496

 
1,545

 
—

Consumer
 
254

 
254

 
104

 
358

 
—

Ending Balance
 
14,186

 
14,186

 
2,239

 
18,804

 
133

Without related allowance recorded:
 
  

 
  

 
  

 
  

 
  

Residential real estate
 
1,943

 
2,604

 
—

 
2,257

 
13

Commercial real estate
 
4,239

 
4,502

 
—

 
2,869

 
59

Commercial
 
463

 
606

 
—

 
791

 
11

Home equity
 
331

 
581

 
—

 
399

 
—

Consumer
 
17

 
37

 
—

 
21

 
—

Ending Balance
 
6,993

 
8,330

 
—

 
6,337

 
83

Total impaired loans
 
$
21,179

 
$
22,516

 
$
2,239

 
$
25,141

 
$
216

 
 
Recorded Investment
 
Unpaid Principal Balance
 
Related Allowance
 
Average Recorded Investment
 
Interest Income Recognized
December 31, 2013:
 
 
 
 
 
 
 
 
 
 
With related allowance recorded:
  
 
  
 
  
 
  
 
  
 
Residential real estate
 
$
11,902

 
$
11,902

 
$
1,750

 
$
10,411

 
$
118

Commercial real estate
 
6,805

 
6,805

 
526

 
5,517

 
20

Commercial
 
1,876

 
1,876

 
132

 
2,543

 
10

Home equity
 
1,228

 
1,228

 
433

 
1,291

 
—

Consumer
 
425

 
425

 
140

 
460

 
—

Ending Balance
 
22,236

 
22,236

 
2,981

 
20,222

 
148

Without related allowance recorded:
 
  

 
  

 
  

 
  

 
  

Residential real estate
 
$
2,533

 
$
3,846

 
$
—

 
$
2,925

 
$
28

Commercial real estate
 
2,059

 
2,782

 
—

 
3,362

 
55

Commercial
 
759

 
871

 
—

 
765

 
8

Home equity
 
343

 
479

 
—

 
334

 
—

Consumer
 
17

 
37

 
—

 
11

 
—

Ending Balance
 
5,711

 
8,015

 
—

 
7,397

 
91

Total impaired loans
 
$
27,947

 
$
30,251

 
$
2,981

 
$
27,619

 
$
239