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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 3 Months Ended
Mar. 31, 2018
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, 2018 and December 31, 2017 was as follows:   
 
March 31,
2018
 
December 31,
2017
Residential real estate
$
860,533

 
$
858,369

Commercial real estate
1,169,533

 
1,164,023

Commercial
378,015

 
373,400

Home equity
320,642

 
323,378

Consumer
18,011

 
18,149

HPFC
42,414

 
45,120

Total loans
$
2,789,148

 
$
2,782,439
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 totaling:
 
March 31,
2018
 
December 31,
2017
Net unamortized fair value mark discount on acquired loans
$
5,703

 
$
6,207

Net unamortized loan origination costs
(958
)
 
(963
)
Total
$
4,745

 
$
5,244
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, 2018 and 2017, and for the year ended December 31, 2017: 
 
 
Residential
Real Estate
 
Commercial
Real Estate
 
Commercial
 
Home
Equity
 
Consumer
 
HPFC
 
Total
For The Three Months Ended March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALL for the three months ended:
 
 

 
 

 
 

 
 

 
 

 
 
 
 

Beginning balance
 
$
5,086

 
$
11,863

 
$
4,171

 
$
2,367

 
$
233

 
$
451

 
$
24,171

Loans charged off
 
(31
)
 
(426
)
 
(171
)
 
(149
)
 
(26
)
 
—

 
(803
)
Recoveries
 
—

 
13

 
63

 
43

 
3

 
—

 
122

Provision (credit)(1)
 
442

 
(1,164
)
 
63

 
166

 
20

 
(27
)
 
(500
)
Ending balance
 
$
5,497

 
$
10,286

 
$
4,126

 
$
2,427

 
$
230

 
$
424

 
$
22,990

ALL balance attributable to loans:
 
 

 
 

 
 

 
 

 
 

 
 
 
 

Individually evaluated for impairment
 
$
553

 
$
368

 
$
—

 
$
112

 
$
—

 
$
—

 
$
1,033

Collectively evaluated for impairment
 
4,944

 
9,918

 
4,126

 
2,315

 
230

 
424

 
21,957

Total ending ALL
 
$
5,497

 
$
10,286

 
$
4,126

 
$
2,427

 
$
230

 
$
424

 
$
22,990

Loans:
 
 

 
 

 
 

 
 

 
 

 
 
 
 

Individually evaluated for impairment
 
$
5,059

 
$
3,961

 
$
1,714

 
$
491

 
$
—

 
$
—

 
$
11,225

Collectively evaluated for impairment
 
855,474

 
1,165,572

 
376,301

 
320,151

 
18,011

 
42,414

 
2,777,923

Total ending loans balance
 
$
860,533

 
$
1,169,533

 
$
378,015

 
$
320,642

 
$
18,011

 
$
42,414

 
$
2,789,148

For The Three Months Ended March 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALL for the three months ended:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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

 
 
Residential
Real Estate
 
Commercial
Real Estate
 
Commercial
 
Home
Equity
 
Consumer
 
HPFC
 
Total
For The Year Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALL:
 
 

 
 

 
 

 
 

 
 

 
 
 
 

Beginning balance
 
$
4,160

 
$
12,154

 
$
3,755

 
$
2,194

 
$
181

 
$
672

 
$
23,116

Loans charged off
 
(482
)
 
(124
)
 
(1,014
)
 
(434
)
 
(124
)
 
(290
)
 
(2,468
)
Recoveries
 
30

 
141

 
301

 
2

 
17

 
6

 
497

Provision (credit)(1)
 
1,378

 
(308
)
 
1,129

 
605

 
159

 
63

 
3,026

Ending balance
 
$
5,086

 
$
11,863

 
$
4,171

 
$
2,367

 
$
233

 
$
451

 
$
24,171

ALL balance attributable to loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
 
$
568

 
$
1,441

 
$
—

 
$
—

 
$
—

 
$
—

 
$
2,009

Collectively evaluated for impairment
 
4,518

 
10,422

 
4,171

 
2,367

 
233

 
451

 
22,162

Total ending ALL
 
$
5,086

 
$
11,863

 
$
4,171

 
$
2,367

 
$
233

 
$
451

 
$
24,171

Loans:
 
  

 
  

 
  

 
  

 
  

 
 
 
  

Individually evaluated for impairment
 
$
5,171

 
$
6,199

 
$
1,791

 
$
429

 
$
—

 
$
—

 
$
13,590

Collectively evaluated for impairment
 
853,198

 
1,157,824

 
371,609

 
322,949

 
18,149

 
45,120

 
2,768,849

Total ending loans balance
 
$
858,369

 
$
1,164,023

 
$
373,400

 
$
323,378

 
$
18,149

 
$
45,120

 
$
2,782,439


(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, 2018 and 2017, and December 31, 2017, the reserve for unfunded commitments was $23,000, $9,000 and $20,000, respectively.
Schedule of Provision for Credit Losses
The following reconciles the three months ended March 31, 2018 and 2017, and year ended December 31, 2017 (credit) provision for loan losses to the (credit) provision for credit losses as presented on the consolidated statement of income:
 
 
Three Months Ended 
 March 31,
 
Year Ended December 31,
2017
 
 
2018
 
2017
 
(Credit) provision for loan losses
 
$
(500
)
 
$
581

 
$
3,026

Change in reserve for unfunded commitments
 
3

 
(2
)
 
9

(Credit) provision for credit losses
 
$
(497
)
 
$
579

 
$
3,035
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, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass (Grades 1-6)
 
$
847,822

 
$
1,146,947

 
$
361,377

 
$
—

 
$
—

 
$
40,768

 
$
2,396,914

Performing
 
—

 
—

 
—

 
319,178

 
18,011

 
—

 
337,189

Special Mention (Grade 7)
 
662

 
8,510

 
12,437

 
—

 
—

 
174

 
21,783

Substandard (Grade 8)
 
12,049

 
14,076

 
4,201

 
—

 
—

 
1,472

 
31,798

Non-performing
 
—

 
—

 
—

 
1,464

 
—

 
—

 
1,464

Total
 
$
860,533

 
$
1,169,533

 
$
378,015

 
$
320,642

 
$
18,011

 
$
42,414

 
$
2,789,148

December 31, 2017
 
 

 
 

 
 

 
 

 
 

 
 
 
 
Pass (Grades 1-6)
 
$
846,394

 
$
1,130,235

 
$
354,904

 
$
—

 
$
—

 
$
43,049

 
$
2,374,582

Performing
 
—

 
—

 
—

 
321,727

 
18,149

 
—

 
339,876

Special Mention (Grade 7)
 
922

 
9,154

 
12,517

 
—

 
—

 
191

 
22,784

Substandard (Grade 8)
 
11,053

 
24,634

 
5,979

 
—

 
—

 
1,880

 
43,546

Non-performing
 
—

 
—

 
—

 
1,651

 
—

 
—

 
1,651

Total
 
$
858,369

 
$
1,164,023

 
$
373,400

 
$
323,378

 
$
18,149

 
$
45,120

 
$
2,782,439
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, 2018
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential real estate
$
2,969

 
$
533

 
$
4,762

 
$
8,264

 
$
852,269

 
$
860,533

 
$
—

 
$
6,185

Commercial real estate
1,455

 
72

 
4,167

 
5,694

 
1,163,839

 
1,169,533

 
—

 
4,603

Commercial
144

 
103

 
1,532

 
1,779

 
376,236

 
378,015

 
—

 
1,991

Home equity
1,121

 
101

 
1,083

 
2,305

 
318,337

 
320,642

 
—

 
1,464

Consumer
14

 
9

 
—

 
23

 
17,988

 
18,011

 
—

 
—

HPFC
109

 
419

 
655

 
1,183

 
41,231

 
42,414

 
—

 
655

Total
$
5,812

 
$
1,237

 
$
12,199

 
$
19,248

 
$
2,769,900

 
$
2,789,148

 
$
—

 
$
14,898

December 31, 2017
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential real estate
$
3,871

 
$
1,585

 
$
4,021

 
$
9,477

 
$
848,892

 
$
858,369

 
$
—

 
$
4,979

Commercial real estate
849

 
323

 
5,528

 
6,700

 
1,157,323

 
1,164,023

 
—

 
5,642

Commercial
329

 
359

 
1,535

 
2,223

 
371,177

 
373,400

 
—

 
2,000

Home equity
1,046

 
173

 
1,329

 
2,548

 
320,830

 
323,378

 
—

 
1,650

Consumer
57

 
10

 
—

 
67

 
18,082

 
18,149

 
—

 
—

HPFC
139

 
1,372

 
419

 
1,930

 
43,190

 
45,120

 
—

 
1,043

Total
$
6,291

 
$
3,822

 
$
12,832

 
$
22,945

 
$
2,759,494

 
$
2,782,439

 
$
—

 
$
15,314
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, 2018
 
December 31, 2017
 
March 31, 2018
 
December 31, 2017
 
March 31, 2018
 
December 31, 2017
Residential real estate
 
24

 
24

 
$
3,581

 
$
3,604

 
$
410

 
$
452

Commercial real estate
 
2

 
3

 
354

 
976

 
20

 
16

Commercial
 
7

 
7

 
1,339

 
1,345

 
—

 
—

Home equity
 
2

 
2

 
306

 
307

 
—

 
—

Total
 
35

 
36

 
$
5,580

 
$
6,232

 
$
430

 
$
468
Schedule of Loan Modifications
The following represents loan modifications that qualify as TDRs that occurred for the three months ended March 31, 2018 and 2017:
 
 
Number of Contracts
 
Pre-Modification
Outstanding
Recorded Investment
 
Post-Modification
Outstanding
Recorded Investment
 
Specific Reserve
 
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
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, 2018 and 2017, and as of and for the year-ended December 31, 2017:
 
 
 
 
 
 
 
For the
Three Months Ended
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
March 31, 2018:
 
 
 
 
 
 
 
 
 
With an allowance recorded:
 

 
 

 
 

 
 

 
 

Residential real estate
$
3,544

 
$
3,544

 
$
553

 
$
3,745

 
$
30

Commercial real estate
3,591

 
3,591

 
368

 
4,275

 
1

Commercial
—

 
—

 
—

 
—

 
—

Home equity
147

 
147

 
112

 
49

 
—

Consumer
—

 
—

 
—

 
—

 
—

HPFC
—

 
—

 
—

 
—

 
—

Ending balance
7,282

 
7,282

 
1,033

 
8,069

 
31

Without an allowance recorded:
 

 
 

 
 

 
 

 
 

Residential real estate
1,515

 
1,791

 
—

 
1,350

 
7

Commercial real estate
370

 
677

 
—

 
637

 
3

Commercial
1,714

 
2,923

 
—

 
1,740

 
2

Home equity
344

 
468

 
—

 
396

 
2

Consumer
—

 
—

 
—

 
—

 
—

HPFC
—

 
—

 
—

 
—

 
—

Ending balance
3,943

 
5,859

 
—

 
4,123

 
14

Total impaired loans
$
11,225

 
$
13,141

 
$
1,033

 
$
12,192

 
$
45

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



 
 
 
 
 
 
 
For the
Year Ended
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
December 31, 2017:
 
 
 
 
 
 
 
 
 
With an allowance recorded:
 
 
 

 
 

 
 

 
 

Residential real estate
$
3,858

 
$
3,858

 
$
568

 
$
3,177

 
$
131

Commercial real estate
5,422

 
5,422

 
1,441

 
8,900

 
22

Commercial
—

 
—

 
—

 
31

 
—

Home equity
—

 
—

 
—

 
125

 
—

Consumer
—

 
—

 
—

 
—

 
—

HPFC
—

 
—

 
—

 
24

 
—

Ending Balance
9,280

 
9,280

 
2,009

 
12,257

 
153

Without an allowance recorded:
  

 
  

 
  

 
  

 
  

Residential real estate
1,313

 
1,673

 
—

 
1,345

 
15

Commercial real estate
777

 
1,084

 
—

 
1,132

 
29

Commercial
1,791

 
2,964

 
—

 
1,920

 
10

Home equity
429

 
495

 
—

 
310

 
8

Consumer
—

 
—

 
—

 
2

 
—

HPFC
—

 
—

 
—

 
—

 
—

Ending Balance
4,310

 
6,216

 
—

 
4,709

 
62

Total impaired loans
$
13,590

 
$
15,496

 
$
2,009

 
$
16,966

 
$
215