XML 38 R27.htm IDEA: XBRL DOCUMENT v3.5.0.2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 6 Months Ended
Jun. 30, 2016
Loans and Leases Receivable Disclosure [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 June 30, 2016 and December 31, 2015 was as follows:   
 
June 30,
2016
 
December 31,
2015
Residential real estate(1)
$
801,965

 
$
821,074

Commercial real estate(1)
1,018,643

 
927,951

Commercial(1)
336,114

 
297,721

Home equity(1)
340,623

 
348,634

Consumer(1)
17,732

 
17,953

HPFC(1)
70,532

 
77,243

Deferred loan fees, net
(309
)
 
(370
)
Total loans
$
2,585,300

 
$
2,490,206


(1)
The loan balances are presented net of the unamortized fair value mark discount associated with the purchase accounting for acquired loans of $10.4 million and $13.1 million at June 30, 2016 and December 31, 2015, respectively.
Summary of Activity in Allowance for Loan Losses
The following tables present the activity in the ALL and select loan information by portfolio segment for the three and six months ended June 30, 2016 and 2015, and for the year ended December 31, 2015: 
 
Residential
Real Estate
 
Commercial
Real Estate
 
Commercial
 
Home
Equity
 
Consumer
 
HPFC
 
Unallocated
 
Total
For The Three and Six Months Ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALL for the three months ended:
 

 
 

 
 

 
 

 
 

 
 
 
 

 
 

Beginning balance
$
4,516

 
$
10,380

 
$
3,298

 
$
2,622

 
$
182

 
$
341

 
$
—

 
$
21,339

Loans charged off
(19
)
 
(19
)
 
(203
)
 
(57
)
 
(26
)
 
(302
)
 
—

 
(626
)
Recoveries
31

 
34

 
82

 
1

 
2

 
—

 
—

 
150

Provision (credit)(1)
(97
)
 
1,164

 
1,381

 
380

 
35

 
(9
)
 
—

 
2,854

Ending balance
$
4,431

 
$
11,559

 
$
4,558

 
$
2,946

 
$
193

 
$
30

 
$
—

 
$
23,717

ALL for the six months ended:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
4,545

 
$
10,432

 
$
3,241

 
$
2,731

 
$
193

 
$
24

 
$
—

 
$
21,166

Loans charged off
(229
)
 
(241
)
 
(429
)
 
(185
)
 
(41
)
 
(302
)
 
—

 
(1,427
)
Recoveries
71

 
43

 
134

 
2

 
4

 
—

 
—

 
254

Provision(1)
44

 
1,325

 
1,612

 
398

 
37

 
308

 
—

 
3,724

Ending balance
$
4,431

 
$
11,559

 
$
4,558

 
$
2,946

 
$
193

 
$
30

 
$
—

 
$
23,717

ALL balance attributable to loans:
 

 
 

 
 

 
 

 
 

 
 
 
 

 
 

Individually evaluated for impairment
$
497

 
$
29

 
$
1,400

 
$
89

 
$
—

 
$
—

 
$
—

 
$
2,015

Collectively evaluated for impairment
3,934

 
11,530

 
3,158

 
2,857

 
193

 
30

 
—

 
21,702

Total ending ALL
$
4,431

 
$
11,559

 
$
4,558

 
$
2,946

 
$
193

 
$
30

 
$
—

 
$
23,717

Loans:
 

 
 

 
 

 
 

 
 

 
 
 
 

 
 

Individually evaluated for impairment
$
4,926

 
$
2,340

 
$
3,461

 
$
503

 
$
7

 
$
—

 
$
—

 
$
11,237

Collectively evaluated for impairment
795,630

 
1,015,437

 
333,056

 
341,478

 
17,811

 
70,651

 
—

 
2,574,063

Total ending loans balance
$
800,556

 
$
1,017,777

 
$
336,517

 
$
341,981

 
$
17,818

 
$
70,651

 
$
—

 
$
2,585,300

For The Three and Six Months Ended June 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALL for the three months ended:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
4,835

 
$
8,234

 
$
3,427

 
$
2,247

 
$
270

 
$
—

 
$
2,252

 
$
21,265

Loans charged off
(179
)
 
(48
)
 
(84
)
 
(152
)
 
(11
)
 
—

 
—

 
(474
)
Recoveries
17

 
54

 
78

 
—

 
3

 
—

 
—

 
152

Provision (credit)(1)
16

 
(80
)
 
(106
)
 
49

 
6

 
—

 
366

 
251

Ending balance
$
4,689

 
$
8,160

 
$
3,315

 
$
2,144

 
$
268

 
$
—

 
$
2,618

 
$
21,194

ALL for the six months ended:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
4,899

 
$
7,951

 
$
3,354

 
$
2,247

 
$
281

 
$
—

 
$
2,384

 
$
21,116

Loans charged off
(292
)
 
(103
)
 
(243
)
 
(241
)
 
(19
)
 
—

 
—

 
(898
)
Recoveries
20

 
64

 
182

 
5

 
14

 
—

 
—

 
285

Provision (credit)(1)
62

 
248

 
22

 
133

 
(8
)
 
—

 
234

 
691

Ending balance
$
4,689

 
$
8,160

 
$
3,315

 
$
2,144

 
$
268

 
$
—

 
$
2,618

 
$
21,194

ALL balance attributable to loans:
 

 
 

 
 

 
 

 
 

 
 
 
 

 
 

Individually evaluated for impairment
$
724

 
$
240

 
$
136

 
$
89

 
$
78

 
$
—

 
$
—

 
$
1,267

Collectively evaluated for impairment
3,965

 
7,920

 
3,179

 
2,055

 
190

 
—

 
2,618

 
19,927

Total ending ALL
$
4,689

 
$
8,160

 
$
3,315

 
$
2,144

 
$
268

 
$
—

 
$
2,618

 
$
21,194

Loans:
 

 
 

 
 

 
 

 
 

 
 
 
 

 
 

Individually evaluated for impairment
$
5,562

 
$
3,034

 
$
800

 
$
986

 
$
157

 
$
—

 
$
—

 
$
10,539

Collectively evaluated for impairment
581,682

 
657,101

 
261,387

 
280,071

 
16,227

 
—

 
—

 
1,796,468

Total ending loans balance
$
587,244

 
$
660,135

 
$
262,187

 
$
281,057

 
$
16,384

 
$
—

 
$
—

 
$
1,807,007

 
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

 
$
7,951

 
$
3,354

 
$
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

 
2,888

 
153

 
821

 
44

 
24

 
(2,384
)
 
1,938

Ending balance
$
4,545

 
$
10,432

 
$
3,241

 
$
2,731

 
$
193

 
$
24

 
$
—

 
$
21,166

ALL balance attributable to loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
544

 
$
644

 
$
92

 
$
89

 
$
—

 
$
—

 
$
—

 
$
1,369

Collectively evaluated for impairment
4,001

 
9,788

 
3,149

 
2,642

 
193

 
24

 
—

 
19,797

Total ending ALL
$
4,545

 
$
10,432

 
$
3,241

 
$
2,731

 
$
193

 
$
24

 
$
—

 
$
21,166

Loans:
  

 
  

 
  

 
  

 
  

 
 
 
  

 
  

Individually evaluated for impairment
$
6,026

 
$
4,610

 
$
3,937

 
$
588

 
$
74

 
$
—

 
$
—

 
$
15,235

Collectively evaluated for impairment
814,591

 
923,341

 
293,784

 
348,046

 
17,879

 
77,330

 
—

 
2,474,971

Total ending loans balance
$
820,617

 
$
927,951

 
$
297,721

 
$
348,634

 
$
17,953

 
$
77,330

 
$
—

 
$
2,490,206


(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 June 30, 2016 and 2015, and December 31, 2015, the reserve for unfunded commitments was $22,000, $26,000 and $22,000, respectively.
Schedule of Provision for Credit Losses
The following table reconciles the three and six months ended June 30, 2016 and 2015, and year ended December 31, 2015 provision for loan losses to the provision for credit losses as presented on the consolidated statement of income:
 
 
Three Months Ended
June 30,
 
Six Months Ended 
June 30,
 
Year Ended December 31,
 
 
2016
 
2015
 
2016
 
2015
 
2015
Provision for loan losses
 
$
2,854

 
$
251

 
$
3,724

 
$
691

 
$
1,938

Change in reserve for unfunded commitments
 
(2
)
 
3

 
—

 
9

 
(2
)
Provision for credit losses
 
$
2,852

 
$
254

 
$
3,724

 
$
700

 
$
1,936
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
June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass (Grades 1-6)
 
$
785,673

 
$
957,457

 
$
322,590

 
$
—

 
$
—

 
$
68,497

 
$
2,134,217

Performing
 
—

 
—

 
—

 
340,370

 
17,814

 
—

 
358,184

Special Mention (Grade 7)
 
3,025

 
18,087

 
8,043

 
—

 
—

 
302

 
29,457

Substandard (Grade 8)
 
11,858

 
42,233

 
5,884

 
—

 
—

 
1,852

 
61,827

Non-performing
 
—

 
—

 
—

 
1,611

 
4

 
—

 
1,615

Total
 
$
800,556

 
$
1,017,777

 
$
336,517

 
$
341,981

 
$
17,818

 
$
70,651

 
$
2,585,300

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
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
June 30, 2016
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential real estate
$
1,862

 
$
456

 
$
3,592

 
$
5,910

 
$
794,646

 
$
800,556

 
$
—

 
$
4,697

Commercial real estate
1,519

 
12,516

 
1,726

 
15,761

 
1,002,016

 
1,017,777

 
—

 
13,752

Commercial
3,296

 
78

 
756

 
4,130

 
332,387

 
336,517

 
—

 
3,539

Home equity
941

 
161

 
1,289

 
2,391

 
339,590

 
341,981

 
—

 
1,611

Consumer
13

 
—

 
7

 
20

 
17,798

 
17,818

 
—

 
4

HPFC
687

 
188

 
222

 
1,097

 
69,554

 
70,651

 
112

 
110

Total
$
8,318

 
$
13,399

 
$
7,592

 
$
29,309

 
$
2,555,991

 
$
2,585,300

 
$
112

 
$
23,713

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
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 the periods indicated:
 
 
Number of Contracts
 
Recorded Investment
 
Specific Reserve
 
 
June 30,
 2016
 
December 31, 2015
 
June 30,
 2016
 
December 31, 2015
 
June 30,
 2016
 
December 31, 2015
Residential real estate
 
21

 
22

 
$
3,273

 
$
3,398

 
$
497

 
$
544

Commercial real estate
 
3

 
6

 
1,024

 
1,459

 
—

 
48

Commercial
 
7

 
9

 
316

 
399

 
—

 
11

Home equity
 
1

 
1

 
19

 
21

 
—

 
—

Total
 
32

 
38

 
$
4,632

 
$
5,277

 
$
497

 
$
603
Summary of Impaired Loan Balances and Associated Allowance by Portfolio Segment
The following is a summary of impaired loan balances and the associated allowance by portfolio segment as of and for three and six months ended June 30, 2016 and 2015, and as of and for the year-ended December 31, 2015:
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
June 30, 2016:
 
 
 
 
 
 
 
 
 
 
 
 
 
With an allowance recorded:
 

 
 

 
 

 
 

 
 

 
 
 
 
Residential real estate
$
3,067

 
$
3,067

 
$
497

 
$
3,156

 
$
25

 
$
3,137

 
$
52

Commercial real estate
99

 
99

 
29

 
1,256

 
—

 
847

 
—

Commercial
2,744

 
2,744

 
1,400

 
239

 
—

 
633

 
—

Home equity
303

 
303

 
89

 
303

 
—

 
309

 
—

Consumer
—

 
—

 
—

 
—

 
—

 
(11
)
 
—

HPFC
—

 
—

 
—

 
256

 
—

 
128

 
—

Ending balance
6,213

 
6,213

 
2,015

 
5,210

 
25

 
5,043

 
52

Without an allowance recorded:
 

 
 

 
 

 
 

 
 

 
 
 
 
Residential real estate
1,859

 
2,347

 
—

 
3,071

 
4

 
2,547

 
4

Commercial real estate
2,241

 
2,765

 
—

 
2,655

 
23

 
2,475

 
25

Commercial
717

 
814

 
—

 
3,978

 
(3
)
 
3,281

 
8

Home equity
200

 
387

 
—

 
220

 
(4
)
 
178

 
—

Consumer
7

 
10

 
—

 
7

 
—

 
18

 
—

HPFC
—

 
—

 
—

 
—

 
—

 
—

 
—

Ending balance
5,024

 
6,323

 
—

 
9,931

 
20

 
8,499

 
37

Total impaired loans
$
11,237

 
$
12,536

 
$
2,015

 
$
15,141

 
$
45

 
$
13,542

 
$
89

June 30, 2015:
 
 
 
 
 
 
 
 
 
 
 
 
 
With an allowance recorded:
 

 
 

 
 

 
 

 
 

 
 
 
 
Residential real estate
$
4,111

 
$
4,111

 
$
724

 
$
4,298

 
$
27

 
$
4,187

 
$
56

Commercial real estate
468

 
501

 
240

 
154

 
—

 
223

 
—

Commercial
217

 
217

 
136

 
213

 
1

 
228

 
1

Home equity
303

 
303

 
89

 
50

 
—

 
101

 
—

Consumer
140

 
140

 
78

 
140

 
—

 
140

 
—

HPFC
—

 
—

 
—

 
—

 
—

 
—

 
—

Ending Balance
5,239

 
5,272

 
1,267

 
4,855

 
28

 
4,879

 
57

Without an allowance recorded:
 

 
 

 
 

 
 

 
 

 
 
 
 
Residential real estate
1,451

 
1,865

 
—

 
1,663

 
2

 
1,553

 
4

Commercial real estate
2,566

 
2,656

 
—

 
2,769

 
27

 
2,437

 
35

Commercial
583

 
712

 
—

 
544

 
4

 
585

 
8

Home equity
683

 
927

 
—

 
474

 
—

 
644

 
—

Consumer
17

 
37

 
—

 
17

 
—

 
17

 
—

HPFC
—

 
—

 
—

 
—

 
—

 
—

 
—

Ending Balance
5,300

 
6,197

 
—

 
5,467

 
33

 
5,236

 
47

Total impaired loans
$
10,539

 
$
11,469

 
$
1,267

 
$
10,322

 
$
61

 
$
10,115

 
$
104



 
 
 
 
 
 
 
Year Ended
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
December 31, 2015:
 
 
 
 
 
 
 
 
 
With an allowance recorded:
 
 
 

 
 

 
 

 
 

Residential real estate
$
3,191

 
$
3,191

 
$
544

 
$
6,064

 
$
112

Commercial real estate
1,825

 
1,857

 
644

 
1,753

 
—

Commercial
156

 
156

 
92

 
945

 
2

Home equity
303

 
303

 
89

 
900

 
—

Consumer
—

 
—

 
—

 
195

 
—

HPFC
—

 
—

 
—

 
—

 
—

Ending Balance
5,475

 
5,507

 
1,369

 
9,857

 
114

Without an allowance recorded:
  

 
  

 
  

 
  

 
  

Residential real estate
2,835

 
4,353

 
—

 
2,175

 
8

Commercial real estate
2,785

 
3,426

 
—

 
2,719

 
65

Commercial
3,781

 
4,325

 
—

 
1,412

 
17

Home equity
285

 
688

 
—

 
369

 
—

Consumer
74

 
150

 
—

 
20

 
—

HPFC
—

 
—

 
—

 
—

 
—

Ending Balance
9,760

 
12,942

 
—

 
6,695

 
90

Total impaired loans
$
15,235

 
$
18,449

 
$
1,369

 
$
16,552

 
$
204