Loans, Allowance for Loan Losses and Credit Quality (Tables)

6 Months Ended

Jun. 30, 2013

Loans, Allowance for Loan Losses and Credit Quality [Abstract]

Allowance for loans based on collective and individual evaluation of impairment by loan category

The following tables bifurcates the amount of allowance allocated to each loan category based on the type of impairment analysis as of the periods indicated:

	June 30, 2013
	(Dollars in thousands)
	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Residential Real Estate		Home Equity		Other Consumer		Total
Financing receivables
Ending balance: total loans by group	$	742,343	$	2,150,833	$	231,719	$	77,283	$	513,551	$	792,450	$	21,932	$	4,530,111	(1	)
Ending balance: individually evaluated for impairment	$	9,759	$	36,439	$	1,608	$	2,039	$	15,883	$	4,069	$	1,584	$	71,381
Ending balance: purchase credit impaired loans	$	—	$	18,304	$	—	$	—	$	8,991	$	380	$	—	$	27,675
Ending balance: collectively evaluated for impairment	$	732,584	$	2,096,090	$	230,111	$	75,244	$	488,677	$	788,001	$	20,348	$	4,431,055

	December 31, 2012
	(Dollars in thousands)
	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Residential Real Estate		Home Equity		Other Consumer		Total
Financing receivables
Ending balance: total loans by group	$	687,511	$	2,122,153	$	188,768	$	78,594	$	612,881	$	802,149	$	26,955	$	4,519,011	(1	)
Ending balance: individually evaluated for impairment	$	8,575	$	33,868	$	—	$	2,279	$	15,373	$	4,435	$	2,129	$	66,659
Ending Balance: purchase credit impaired loans	$	—	$	21,853	$	—	$	—	$	9,821	$	380	$	—	$	32,054
Ending balance: collectively evaluated for impairment	$	678,936	$	2,066,432	$	188,768	$	76,315	$	587,687	$	797,334	$	24,826	$	4,420,298

(1) The amount of deferred fees included in the ending balance was $2.6 million and $3.1 million at June 30, 2013 and December 31, 2012, respectively.

Summary of changes in allowance for loan losses

The following tables summarize changes in allowance for loan losses by loan category for the periods indicated:

	Three Months Ended June 30, 2013
	(Dollars in thousands)
	Commercial and Industrial			Commercial Real Estate			Commercial Construction		Small Business			Residential Real Estate			Home Equity			Other Consumer			Total
Allowance for loan losses
Beginning balance	$	13,443		$	22,569		$	3,139	$	1,244		$	3,048		$	7,716		$	747		$	51,906
Charge-offs	(1,302		)	(196		)	—		(276		)	(186		)	(257		)	(260		)	(2,477		)
Recoveries	103			8			—		37			86			30			183			447
Provision	2,081			648			283		290			11			(222		)	9			3,100
Ending balance	$	14,325		$	23,029		$	3,422	$	1,295		$	2,959		$	7,267		$	679		$	52,976

	Three Months Ended June 30, 2012
	(Dollars in thousands)
	Commercial and Industrial			Commercial Real Estate			Commercial Construction			Small Business			Residential Real Estate			Home Equity			Other Consumer			Total
Allowance for loan losses
Beginning balance	$	11,454		$	22,829		$	2,233		$	1,459		$	3,072		$	6,077		$	1,216		$	48,340
Charge-offs	(4,707		)	(2,133		)	—			(136		)	(105		)	(1,391		)	(296		)	(8,768		)
Recoveries	113			—			—			46			—			18			154			331
Provision	4,698			680			(13		)	(49		)	14			3,150			20			8,500
Ending balance	$	11,558		$	21,376		$	2,220		$	1,320		$	2,981		$	7,854		$	1,094		$	48,403

	Six Months Ended June 30, 2013
	(Dollars in thousands)
	Commercial and Industrial			Commercial Real Estate			Commercial Construction		Small Business			Residential Real Estate			Home Equity			Other Consumer			Total
Allowance for loan losses
Beginning balance	$	13,461		$	22,598		$	2,811	$	1,524		$	2,930		$	7,703		$	807		$	51,834
Charge-offs	(1,725		)	(603		)	—		(421		)	(247		)	(534		)	(521		)	(4,051		)
Recoveries	239			8			—		76			86			51			333			793
Provision	2,350			1,026			611		116			190			47			60			4,400
Ending balance	$	14,325		$	23,029		$	3,422	$	1,295		$	2,959		$	7,267		$	679		$	52,976
Ending balance: Individually evaluated for impairment	$	775		$	410		$	—	$	153		$	1,670		$	52		$	92		$	3,152
Ending balance: Collectively evaluated for impairment	$	13,550		$	22,619		$	3,422	$	1,142		$	1,289		$	7,215		$	587		$	49,824
	Six Months Ended June 30, 2012
	(Dollars in thousands)
	Commercial and Industrial			Commercial Real Estate			Commercial Construction		Small Business			Residential Real Estate			Home Equity			Other Consumer			Total
Allowance for loan losses
Beginning balance	$	11,682		$	23,514		$	2,076	$	1,896		$	3,113		$	4,597		$	1,382		$	48,260
Charge-offs	(4,722		)	(2,737		)	—		(306		)	(214		)	(2,141		)	(593		)	(10,713		)
Recoveries	313			—			—		98			—			31			314			756
Provision	4,285			599			144		(368		)	82			5,367			(9		)	10,100
Ending balance	$	11,558		$	21,376		$	2,220	$	1,320		$	2,981		$	7,854		$	1,094		$	48,403
Ending balance: Individually evaluated for impairment	$	278		$	445		$	—	$	140		$	1,209		$	30		$	178		$	2,280
Ending balance: Collectively evaluated for impairment	$	11,280		$	20,931		$	2,220	$	1,180		$	1,772		$	7,824		$	916		$	46,123

Internal risk-rating categories for the Company's commercial portfolio

The following table details the internal risk-rating categories for the Company’s commercial portfolio:

		June 30, 2013
Category	Risk Rating	Commercial  and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Total
		(Dollars in thousands)
Pass	1 - 6	$	704,065	$	1,976,410	$	217,096	$	70,108	$	2,967,679
Potential weakness	7	17,088		74,143		6,955		3,036		101,222
Definite weakness-loss unlikely	8	20,410		98,818		7,668		4,106		131,002
Partial loss probable	9	780		1,462		—		33		2,275
Definite loss	10	—		—		—		—		—
Total		$	742,343	$	2,150,833	$	231,719	$	77,283	$	3,202,178

		December 31, 2012
Category	Risk Rating	Commercial  and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Total
		(Dollars in thousands)
Pass	1 - 6	$	647,984	$	1,928,148	$	177,693	$	71,231	$	2,825,056
Potential weakness	7	16,420		92,651		6,195		3,213		118,479
Definite weakness-loss unlikely	8	21,979		98,688		4,880		4,080		129,627
Partial loss probable	9	1,128		2,666		—		70		3,864
Definite loss	10	—		—		—		—		—
Total		$	687,511	$	2,122,153	$	188,768	$	78,594	$	3,077,026

Weighted average FICO scores and the weighted average combined LTV ratio

The following table shows the weighted average FICO scores and the weighted average combined LTV ratios as of the periods indicated below:

	June 30, 2013		December 31, 2012
Residential portfolio
FICO score (re-scored) (1)	739		727
LTV (re-valued) (2)	70.0	%	67.0	%
Home equity portfolio
FICO score (re-scored) (1)	763		763
LTV (re-valued) (2)	55.0	%	54.0	%

(1) The average FICO scores for June 30, 2013 are based upon rescores available from May 2013 and actual score data for loans booked between June 1 and June 30, 2013. The average FICO scores for December 31, 2012 are based upon rescores available from November 2012 and actual score data for loans booked between December 1 and December 31, 2012.

(2) The combined LTV ratios for June 30, 2013 are based upon updated automated valuations as of February 2013. The combined LTV ratios for December 31, 2012 are based upon updated automated valuations as of November 30, 2011. For home equity loans and lines in a subordinate lien, the LTV data represents a combined LTV, taking into account the senior lien data for loans and lines.

Summary of nonaccrual loans

The following table shows nonaccrual loans at the dates indicated:

	June 30, 2013		December 31, 2012
	(Dollars in thousands)
Commercial and industrial	$	3,009	$	2,666
Commercial real estate	8,526		6,574
Commercial construction	1,608		—
Small business	698		570
Residential real estate	12,496		11,472
Home equity (1)	10,024		7,311
Other consumer	134		121
Total nonaccrual loans (2)	$	36,495	$	28,714

(1) Includes home equity loans which are currently performing but have been placed on nonaccrual as a result of delinquency with respect to the first position, which is held by another financial institution.

(2) Included in these amounts were $9.8 million and $6.6 million of nonaccruing TDRs at June 30, 2013 and December 31, 2012, respectively.

Age analysis of past due financing receivables

The following table shows the age analysis of past due financing receivables as of the dates indicated:

	June 30, 2013
	30-59 days			60-89 days			90 days or more			Total Past Due					Total Financing Receivables		Recorded Investment >90 Days and Accruing
	Number of Loans	Principal Balance		Number of Loans	Principal Balance		Number of Loans	Principal Balance		Number of Loans	Principal Balance		Current
	(Dollars in thousands)
Loan Portfolio
Commercial and industrial	15	$	1,481	13	$	1,821	22	$	2,407	50	$	5,709	$	736,634	$	742,343	$	—
Commercial real estate	51	5,454		10	9,581		27	6,529		88	21,564		2,129,269		2,150,833		—
Commercial construction	—	—		—	—		1	1,608		1	1,608		230,111		231,719		—
Small business	25	717		11	149		13	359		49	1,225		76,058		77,283		—
Residential real estate	15	3,359		4	1,768		38	6,982		57	12,109		501,442		513,551		—
Home equity	16	592		12	1,174		23	2,009		51	3,775		788,675		792,450		—
Other consumer	112	559		14	39		28	180		154	778		21,154		21,932		54
Total	234	$	12,162	64	$	14,532	152	$	20,074	450	$	46,768	$	4,483,343	$	4,530,111	$	54

	December 31, 2012
	30-59 days			60-89 days			90 days or more			Total Past Due					Total Financing Receivables		Recorded Investment >90 Days and Accruing
	Number of Loans	Principal Balance		Number of Loans	Principal Balance		Number of Loans	Principal Balance		Number of Loans	Principal Balance		Current
	(Dollars in thousands)
Loan Portfolio
Commercial and industrial	14	$	1,305	7	$	336	23	$	1,875	44	$	3,516	$	683,995	$	687,511	$	—
Commercial real estate	19	5,028		8	2,316		31	6,054		58	13,398		2,108,755		2,122,153		—
Commercial construction	—	—		—	—		—	—		—	—		188,768		188,768		—
Small business	20	750		8	94		10	320		38	1,164		77,430		78,594		—
Residential real estate	17	3,053		7	1,848		40	7,501		64	12,402		600,479		612,881		—
Home equity	32	2,756		10	632		17	1,392		59	4,780		797,369		802,149		—
Other consumer	208	1,217		32	224		28	153		268	1,594		25,361		26,955		52
Total	310	$	14,109	72	$	5,450	149	$	17,295	531	$	36,854	$	4,482,157	$	4,519,011	$	52

Summary of Troubled Debt Restructuring and other pertinent information

The following table shows the Company’s total TDRs and other pertinent information as of the dates indicated:

	June 30, 2013		December 31, 2012
	(Dollars in thousands)
TDRs on accrual status	$	38,898	$	46,764
TDRs on nonaccrual	9,777		6,554
Total TDRs	$	48,675	$	53,318
Amount of specific reserves included in the allowance for loan losses associated with TDRs:	$	2,796	$	3,049
Additional commitments to lend to a borrower who has been a party to a TDR:	$	1,921	$	1,847

Change in investment recorded subsequent to modifications

The following table shows the modifications which occurred during the periods indicated and the change in the recorded investment subsequent to the modifications occurring:

	Three Months Ended					Six Months Ended
	June 30, 2013					June 30, 2013
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment (1)		Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment (1)
	(Dollars in thousands)
Troubled debt restructurings
Commercial & industrial	2	$	282	$	282	2	$	282	$	282
Commercial real estate	1	664		664		2	1,063		1,063
Small business	1	$	18	$	18	5	282		282
Residential real estate	2	744		744		6	1,900		1,926
Home equity	1	29		29		3	194		194
Other consumer	—	—		—		2	11		11
Total	7	$	1,737	$	1,737	20	$	3,732	$	3,758

	Three Months Ended					Six Months Ended
	June 30, 2012					June 30, 2012
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment (1)		Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment (1)
	(Dollars in thousands)
Troubled debt restructurings
Commercial & industrial	7	$	1,115	$	1,115	11	$	1,273	$	1,273
Commercial real estate	7	3,839		3,839		9	4,907		4,907
Small business	1	17		17		8	360		360
Residential real estate	1	261		261		2	378		378
Home equity	1	64		66		1	64		66
Other consumer	2	65		65		4	150		150
Total	19	$	5,361	$	5,363	35	$	7,132	$	7,134

(1) The post-modification balances represent the balance of the loan on the date of modifications. These amounts may show an increase when modifications include a capitalization of interest.

Post modification balance of Troubled Debt Restructuring

The following table shows the Company’s post-modification balance of TDRs listed by type of modification as of the periods indicated:

	Three Months Ended June 30				Six Months Ended June 30
	2013		2012		2013		2012
	(Dollars in thousands)				(Dollars in thousands)
Extended maturity	$	329	$	313	$	991	$	354
Adjusted interest rate	—		2,119		—		3,557
Combination rate & maturity	1,408		2,931		2,756		3,223
Court ordered concession	—		—		11		—
Total	$	1,737	$	5,363	$	3,758	$	7,134

Troubled Debt Restructurings that subsequently defaulted

The following table shows the loans that have been modified during the past twelve months which have subsequently defaulted during the periods indicated. The Company considers a loan to have defaulted when it reaches 90 days past due.

	Three Months Ended June 30
	2013			2012
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(Dollars in thousands)
Troubled debt restructurings that subsequently defaulted
Commercial & industrial	2	$	1,767	—	$	—
Commercial real estate	1	398		—	—
Small business	2	22		—	—
Total	5	$	2,187	—	$	—
	Six Months Ended June 30
	2013			2012
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(Dollars in thousands)
Troubled debt restructurings that subsequently defaulted
Commercial & industrial	2	$	1,767	—	$	—
Commercial real estate	1	398		1	250
Small business	3	253		—	—
Other consumer	—	—		1	6
Total	6	$	2,418	2	$	256

Impaired loans by loan portfolio

The tables below set forth information regarding the Company’s impaired loans by loan portfolio as of the dates indicated:

	June 30, 2013
	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Dollars in thousands)
With no related allowance recorded
Commercial & industrial	$	6,780	$	8,577	$	—
Commercial real estate	18,252		18,928		—
Commercial construction	1,608		1,608		—
Small business	1,297		1,455		—
Residential real estate	2,221		2,330		—
Home equity	3,664		3,717		—
Other consumer	541		542		—
Subtotal	34,363		37,157		—
With an allowance recorded
Commercial & industrial	$	2,979	$	3,751	$	775
Commercial real estate	18,187		18,330		410
Commercial construction	—		—		—
Small business	742		778		153
Residential real estate	13,662		14,502		1,670
Home equity	405		457		52
Other consumer	1,043		1,069		92
Subtotal	37,018		38,887		3,152
Total	$	71,381	$	76,044	$	3,152

	December 31, 2012
	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Dollars in thousands)
With no related allowance recorded
Commercial & industrial	$	5,849	$	7,343	$	—
Commercial real estate	12,999		13,698		—
Commercial construction	—		—		—
Small business	1,085		1,147		—
Residential real estate	2,545		2,630		—
Home equity	4,119		4,166		—
Other consumer	700		705		—
Subtotal	27,297		29,689		—
With an allowance recorded
Commercial & industrial	$	2,726	$	2,851	$	1,084
Commercial real estate	20,869		21,438		516
Commercial construction	—		—		—
Small business	1,194		1,228		353
Residential real estate	12,828		13,601		1,302
Home equity	316		389		35
Other consumer	1,429		1,453		130
Subtotal	39,362		40,960		3,420
Total	$	66,659	$	70,649	$	3,420

Interest income recognized on impaired loans

The following tables set forth information regarding interest income recognized on impaired loans, by portfolio, for the periods indicated:

	Three Months Ended				Six Months Ended
	June 30, 2013				June 30, 2013
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
With no related allowance recorded
Commercial & industrial	$	8,396	$	114	$	8,836	$	230
Commercial real estate	18,392		312		18,448		628
Commercial construction	1,608		13		1,608		26
Small business	1,393		22		1,454		46
Residential real estate	2,236		25		2,253		44
Home equity	3,674		43		3,691		85
Other consumer	560		10		585		23
Subtotal	36,259		539		36,875		1,082
With an allowance recorded
Commercial & industrial	$	3,076	$	43	$	3,221	$	89
Commercial real estate	18,242		263		18,235		526
Commercial construction	—		—		—		—
Small business	748		12		760		23
Residential real estate	13,688		127		13,732		255
Home equity	407		5		410		10
Other consumer	1,074		10		1,113		20
Subtotal	37,235		460		37,471		923
Total	$	73,494	$	999	$	74,346	$	2,005

	Three Months Ended				Six Months Ended
	June 30, 2012				June 30, 2012
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
With no related allowance recorded
Commercial & industrial	$	6,401	$	85	$	6,490	$	172
Commercial real estate	20,214		350		20,407		707
Commercial construction	—		—		—		—
Small business	1,474		25		1,517		52
Residential real estate	—		—		—		—
Home equity	100		2		100		3
Other consumer	72		1		56		1
Subtotal	28,261		463		28,570		935
With an allowance recorded
Commercial & industrial	$	1,343	$	28	$	1,398	$	60
Commercial real estate	15,685		229		16,432		473
Commercial construction	—		—		—		—
Small business	1,043		16		1,082		32
Residential real estate	12,958		157		13,053		296
Home equity	240		4		241		8
Other consumer	1,781		16		1,822		34
Subtotal	33,050		450		34,028		903
Total	$	61,311	$	913	$	62,598	$	1,838

Certain Loans Acquired In Transfer Accounted For As Debt Securities Acquired During Period

The following table displays certain information pertaining to purchased credit impaired loans at the dated indicated:

	June 30, 2013		December 31, 2012
	(Dollars in thousands)
Outstanding balance	$	30,705	$	36,278
Carrying amount	$	27,675	$	32,054

Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule

The following table summarizes activity in the accretable yield for the PCI loan portfolio:

	(Dollars in thousands)
Balance at January 1, 2012	$	—
Acquisition	3,095
Accretion	(903		)
Reclassification from nonaccretable difference for loans with improved cash flows (1)	272
Balance at December 31, 2012	2,464
Balance at January 1, 2013	$	2,464
Accretion	(1,142		)
Other change in expected cash flows (2)	439
Reclassification from nonaccretable difference for loans with improved cash flows (1)	335
Balance at June 30, 2013	$	2,096

(1) Results in increased interest income during the period in which the loan paid off.

(2) Represents changes in cash flows expected to be collected and resulting in increased interest income as a prospective yield adjustment over the remaining life of the loan(s).