XML 38 R27.htm IDEA: XBRL DOCUMENT v3.7.0.1
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 3 Months Ended
Mar. 31, 2017
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 March 31, 2017 and December 31, 2016 was as follows:   
 
March 31,
2017
 
December 31,
2016
Residential real estate
$
819,639

 
$
802,494

Commercial real estate
1,096,475

 
1,050,780

Commercial
333,607

 
333,639

Home equity
322,826

 
329,907

Consumer
16,669

 
17,332

HPFC
55,923

 
60,412

Total loans
$
2,645,139

 
$
2,594,564
Schedule of Loan Balances by Portfolio Segment
The loan balances for each portfolio segment presented above are net of their respective unamortized fair value mark discount on acquired loans and net of unamortized loan origination (costs) fees totaling:
 
March 31,
2017
 
December 31,
2016
Net unamortized fair value mark discount on acquired loans
$
8,125

 
$
8,810

Net unamortized loan origination (costs) fees
(248
)
 
(66
)
Total
$
7,877

 
$
8,744
Summary of Activity in Allowance for Loan Losses
The following presents the activity in the ALL and select loan information by portfolio segment for the three months ended March 31, 2017 and 2016, and for the year ended December 31, 2016: 
 
 
Residential
Real Estate
 
Commercial
Real Estate
 
Commercial
 
Home
Equity
 
Consumer
 
HPFC
 
Total
For The Three Months Ended March 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALL:
 
 

 
 

 
 

 
 

 
 

 
 
 
 

Beginning balance
 
$
4,160

 
$
12,154

 
$
3,755

 
$
2,194

 
$
181

 
$
672

 
$
23,116

Loans charged off
 
(5
)
 
(3
)
 
(136
)
 
(1
)
 
(14
)
 
—

 
(159
)
Recoveries
 
—

 
103

 
77

 
1

 
2

 
—

 
183

Provision (credit)(1)
 
116

 
472

 
119

 
(87
)
 
6

 
(45
)
 
581

Ending balance
 
$
4,271

 
$
12,726

 
$
3,815

 
$
2,107

 
$
175

 
$
627

 
$
23,721

ALL balance attributable to loans:
 
 

 
 

 
 

 
 

 
 

 
 
 
 

Individually evaluated for impairment
 
$
485

 
$
1,100

 
$
—

 
$
83

 
$
—

 
$
66

 
$
1,734

Collectively evaluated for impairment
 
3,786

 
11,626

 
3,815

 
2,024

 
175

 
561

 
21,987

Total ending ALL
 
$
4,271

 
$
12,726

 
$
3,815

 
$
2,107

 
$
175

 
$
627

 
$
23,721

Loans:
 
 

 
 

 
 

 
 

 
 

 
 
 
 

Individually evaluated for impairment
 
$
4,408

 
$
13,191

 
$
1,994

 
$
430

 
$
7

 
$
98

 
$
20,128

Collectively evaluated for impairment
 
815,231

 
1,083,284

 
331,613

 
322,396

 
16,662

 
55,825

 
2,625,011

Total ending loans balance
 
$
819,639

 
$
1,096,475

 
$
333,607

 
$
322,826

 
$
16,669

 
$
55,923

 
$
2,645,139

For The Three Months Ended March 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALL:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
4,545

 
$
10,432

 
$
3,241

 
$
2,731

 
$
193

 
$
24

 
$
21,166

Loans charged off
 
(210
)
 
(222
)
 
(226
)
 
(128
)
 
(15
)
 
—

 
(801
)
Recoveries
 
40

 
9

 
52

 
1

 
2

 
—

 
104

Provision(1)
 
141

 
161

 
231

 
18

 
2

 
317

 
870

Ending balance
 
$
4,516

 
$
10,380

 
$
3,298

 
$
2,622

 
$
182

 
$
341

 
$
21,339

ALL balance attributable to loans:
 
 

 
 

 
 

 
 

 
 

 
 
 
 

Individually evaluated for impairment
 
$
512

 
$
158

 
$
214

 
$
89

 
$
—

 
$
307

 
$
1,280

Collectively evaluated for impairment
 
4,004

 
10,222

 
3,084

 
2,533

 
182

 
34

 
20,059

Total ending ALL
 
$
4,516

 
$
10,380

 
$
3,298

 
$
2,622

 
$
182

 
$
341

 
$
21,339

Loans:
 
 

 
 

 
 

 
 

 
 

 
 
 
 

Individually evaluated for impairment
 
$
6,033

 
$
3,130

 
$
3,862

 
$
492

 
$
7

 
$
357

 
$
13,881

Collectively evaluated for impairment
 
805,941

 
949,351

 
288,202

 
344,005

 
17,182

 
74,072

 
2,478,753

Total ending loans balance
 
$
811,974

 
$
952,481

 
$
292,064

 
$
344,497

 
$
17,189

 
$
74,429

 
$
2,492,634

 
 
Residential
Real Estate
 
Commercial
Real Estate
 
Commercial
 
Home
Equity
 
Consumer
 
HPFC
 
Total
For The Year Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALL:
 
 

 
 

 
 

 
 

 
 

 
 
 
 

Beginning balance
 
$
4,545

 
$
10,432

 
$
3,241

 
$
2,731

 
$
193

 
$
24

 
$
21,166

Loans charged off
 
(356
)
 
(315
)
 
(2,218
)
 
(308
)
 
(101
)
 
(507
)
 
(3,805
)
Recoveries
 
95

 
50

 
332

 
2

 
7

 
—

 
486

Provision (credit)(1)
 
(124
)
 
1,987

 
2,400

 
(231
)
 
82

 
1,155

 
5,269

Ending balance
 
$
4,160

 
$
12,154

 
$
3,755

 
$
2,194

 
$
181

 
$
672

 
$
23,116

ALL balance attributable to loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
 
$
483

 
$
1,373

 
$
—

 
$
86

 
$
—

 
$
65

 
$
2,007

Collectively evaluated for impairment
 
3,677

 
10,781

 
3,755

 
2,108

 
181

 
607

 
21,109

Total ending ALL
 
$
4,160

 
$
12,154

 
$
3,755

 
$
2,194

 
$
181

 
$
672

 
$
23,116

Loans:
 
  

 
  

 
  

 
  

 
  

 
 
 
  

Individually evaluated for impairment
 
$
4,348

 
$
13,317

 
$
2,028

 
$
457

 
$
7

 
$
97

 
$
20,254

Collectively evaluated for impairment
 
798,146

 
1,037,463

 
331,611

 
329,450

 
17,325

 
60,315

 
2,574,310

Total ending loans balance
 
$
802,494

 
$
1,050,780

 
$
333,639

 
$
329,907

 
$
17,332

 
$
60,412

 
$
2,594,564


(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 March 31, 2017 and 2016, and December 31, 2016, the reserve for unfunded commitments was $9,000, $24,000 and $11,000, respectively.
Schedule of Provision for Credit Losses
The following reconciles the three months ended March 31, 2017 and 2016, and year ended December 31, 2016 provision for loan losses to the provision for credit losses as presented on the consolidated statement of income:
 
 
Three Months Ended 
 March 31,
 
Year Ended December 31,
2016
 
 
2017
 
2016
 
Provision for loan losses
 
$
581

 
$
870

 
$
5,269

Change in reserve for unfunded commitments
 
(2
)
 
2

 
(11
)
Provision for credit losses
 
$
579

 
$
872

 
$
5,258
Credit Risk Exposure Indicators by Portfolio Segment
The following 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
March 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass (Grades 1-6)
 
$
808,075

 
$
1,038,096

 
$
321,667

 
$
—

 
$
—

 
$
53,669

 
$
2,221,507

Performing
 
—

 
—

 
—

 
321,278

 
16,665

 
—

 
337,943

Special Mention (Grade 7)
 
952

 
15,625

 
5,486

 
—

 
—

 
239

 
22,302

Substandard (Grade 8)
 
10,612

 
42,754

 
5,017

 
—

 
—

 
2,015

 
60,398

Doubtful (Grade 9)
 
—

 
—

 
1,437

 
—

 
—

 
—

 
1,437

Non-performing
 
—

 
—

 
—

 
1,548

 
4

 
—

 
1,552

Total
 
$
819,639

 
$
1,096,475

 
$
333,607

 
$
322,826

 
$
16,669

 
$
55,923

 
$
2,645,139

December 31, 2016
 
 

 
 

 
 

 
 

 
 

 
 
 
 
Pass (Grades 1-6)
 
$
789,554

 
$
1,003,386

 
$
321,148

 
$
—

 
$
—

 
$
58,943

 
$
2,173,031

Performing
 
—

 
—

 
—

 
328,287

 
17,328

 
—

 
345,615

Special Mention (Grade 7)
 
2,387

 
5,724

 
5,598

 
—

 
—

 
257

 
13,966

Substandard (Grade 8)
 
10,553

 
41,670

 
5,437

 
—

 
—

 
1,212

 
58,872

Doubtful (Grade 9)
 
—

 
—

 
1,456

 
—

 
—

 
—

 
1,456

Non-performing
 
—

 
—

 
—

 
1,620

 
4

 
—

 
1,624

Total
 
$
802,494

 
$
1,050,780

 
$
333,639

 
$
329,907

 
$
17,332

 
$
60,412

 
$
2,594,564
Loan Aging Analysis by Portfolio Segment
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
March 31, 2017
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential real estate
$
2,188

 
$
354

 
$
3,376

 
$
5,918

 
$
813,721

 
$
819,639

 
$
—

 
$
4,105

Commercial real estate
2,393

 
127

 
12,653

 
15,173

 
1,081,302

 
1,096,475

 
—

 
12,858

Commercial
76

 
92

 
1,566

 
1,734

 
331,873

 
333,607

 
—

 
1,994

Home equity
870

 
188

 
1,346

 
2,404

 
320,422

 
322,826

 
—

 
1,548

Consumer
18

 
12

 
4

 
34

 
16,635

 
16,669

 
—

 
4

HPFC
1,056

 
259

 
476

 
1,791

 
54,132

 
55,923

 
—

 
1,014

Total
$
6,601

 
$
1,032

 
$
19,421

 
$
27,054

 
$
2,618,085

 
$
2,645,139

 
$
—

 
$
21,523

December 31, 2016
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential real estate
$
1,783

 
$
924

 
$
2,904

 
$
5,611

 
$
796,883

 
$
802,494

 
$
—

 
$
3,945

Commercial real estate
855

 
223

 
12,625

 
13,703

 
1,037,077

 
1,050,780

 
—

 
12,849

Commercial
633

 
218

 
1,675

 
2,526

 
331,113

 
333,639

 
—

 
2,088

Home equity
892

 
134

 
1,321

 
2,347

 
327,560

 
329,907

 
—

 
1,620

Consumer
38

 
—

 
4

 
42

 
17,290

 
17,332

 
—

 
4

HPFC
438

 
688

 
110

 
1,236

 
59,176

 
60,412

 
—

 
207

Total
$
4,639

 
$
2,187

 
$
18,639

 
$
25,465

 
$
2,569,099

 
$
2,594,564

 
$
—

 
$
20,713
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
 
 
March 31, 2017
 
December 31, 2016
 
March 31, 2017
 
December 31, 2016
 
March 31, 2017
 
December 31, 2016
Residential real estate
 
22

 
21

 
$
3,354

 
$
3,221

 
$
485

 
$
483

Commercial real estate
 
3

 
3

 
1,003

 
1,008

 
15

 
—

Commercial
 
10

 
10

 
1,497

 
1,502

 
—

 
—

Home equity
 
1

 
1

 
14

 
16

 
—

 
—

Total
 
36

 
35

 
$
5,868

 
$
5,747

 
$
500

 
$
483
Schedule of Loan Modifications
The following represents loan modifications that qualify as TDRs that occurred for the three months ended March 31, 2017 and 2016:
 
 
Number of Contracts
 
Pre-Modification
Outstanding
Recorded Investment
 
Post-Modification
Outstanding
Recorded Investment
 
Specific Reserve
 
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
 
2017
 
2016
Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maturity concession
 
1

 
—

 
$
151

 
$
—

 
$
151

 
$
—

 
$
15

 
$
—

Total
 
1

 
—

 
$
151

 
$
—

 
$
151

 
$
—

 
$
15

 
$
—
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 the three months ended March 31, 2017 and 2016, and as of and for the year-ended December 31, 2016:
 
 
 
 
 
 
 
Three Months Ended
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
March 31, 2017:
 
 
 
 
 
 
 
 
 
With an allowance recorded:
 

 
 

 
 

 
 

 
 

Residential real estate
$
3,048

 
$
3,048

 
$
485

 
$
3,025

 
$
26

Commercial real estate
11,791

 
11,791

 
1,100

 
11,654

 
—

Commercial
1

 
1

 
—

 
—

 
—

Home equity
297

 
297

 
83

 
298

 
—

Consumer
—

 
—

 
—

 
—

 
—

HPFC
98

 
98

 
66

 
98

 
—

Ending balance
15,235

 
15,235

 
1,734

 
15,075

 
26

Without an allowance recorded:
 

 
 

 
 

 
 

 
 

Residential real estate
1,360

 
1,740

 
—

 
1,292

 
2

Commercial real estate
1,400

 
1,707

 
—

 
1,704

 
10

Commercial
1,993

 
3,167

 
—

 
2,024

 
3

Home equity
133

 
269

 
—

 
139

 
—

Consumer
7

 
10

 
—

 
7

 
—

HPFC
—

 
—

 
—

 
—

 
—

Ending balance
4,893

 
6,893

 
—

 
5,166

 
15

Total impaired loans
$
20,128

 
$
22,128

 
$
1,734

 
$
20,241

 
$
41

March 31, 2016:
 
 
 
 
 
 
 
 
 
With an allowance recorded:
 

 
 

 
 

 
 

 
 

Residential real estate
$
3,137

 
$
3,137

 
$
512

 
$
3,156

 
$
27

Commercial real estate
540

 
538

 
158

 
1,256

 
—

Commercial
321

 
334

 
214

 
239

 
—

Home equity
303

 
303

 
89

 
303

 
—

Consumer
—

 
—

 
—

 
—

 
—

HPFC
357

 
383

 
307

 
230

 
—

Ending Balance
4,658

 
4,695

 
1,280

 
5,184

 
27

Without an allowance recorded:
 

 
 

 
 

 
 

 
 

Residential real estate
2,896

 
3,832

 
—

 
2,954

 
2

Commercial real estate
2,590

 
3,327

 
—

 
2,643

 
11

Commercial
3,541

 
3,996

 
—

 
3,664

 
4

Home equity
189

 
452

 
—

 
218

 
—

Consumer
7

 
10

 
—

 
7

 
—

HPFC
—

 
—

 
—

 
—

 
—

Ending Balance
9,223

 
11,617

 
—

 
9,486

 
17

Total impaired loans
$
13,881

 
$
16,312

 
$
1,280

 
$
14,670

 
$
44




 
 
 
 
 
 
 
Year Ended
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
December 31, 2016:
 
 
 
 
 
 
 
 
 
With an allowance recorded:
 
 
 

 
 

 
 

 
 

Residential real estate
$
3,019

 
$
3,019

 
$
483

 
$
3,088

 
$
106

Commercial real estate
11,443

 
11,443

 
1,373

 
5,165

 
—

Commercial
—

 
—

 
—

 
762

 
—

Home equity
299

 
299

 
86

 
305

 
—

Consumer
—

 
—

 
—

 
—

 
—

HPFC
97

 
97

 
65

 
98

 
—

Ending Balance
14,858

 
14,858

 
2,007

 
9,418

 
106

Without an allowance recorded:
  

 
  

 
  

 
  

 
  

Residential real estate
1,329

 
1,800

 
—

 
2,057

 
9

Commercial real estate
1,874

 
2,369

 
—

 
2,214

 
51

Commercial
2,028

 
3,209

 
—

 
2,507

 
16

Home equity
158

 
368

 
—

 
180

 
—

Consumer
7

 
10

 
—

 
12

 
—

HPFC
—

 
—

 
—

 
—

 
—

Ending Balance
5,396

 
7,756

 
—

 
6,970

 
76

Total impaired loans
$
20,254

 
$
22,614

 
$
2,007

 
$
16,388

 
$
182