XML 43 R31.htm IDEA: XBRL DOCUMENT v3.19.2
Allowance for Loan Losses and Credit Quality of Loans (Tables)
 6 Months Ended
Jun. 30, 2019
Allowance for Loan Losses and Credit Quality of Loans [Abstract]  
Portfolio and Class Segments
Portfolio
Class
Commercial Loans
Commercial and Industrial
 
Commercial Real Estate
 
Business Banking
Consumer Loans
Dealer Finance
 
Specialty Lending
 
Direct
Residential Real Estate
  

Allowance for Loan Losses by Portfolio The following tables illustrate the changes in the allowance for loan losses by our portfolio segments:

(In thousands)
  
Commercial
Loans
    
Consumer
Loans
    
Residential
Real Estate
    
Total
  
Balance as of March 31, 2019
  
$
32,159
    
$
36,804
    
$
2,442
    
$
71,405
  
Charge-offs
    
(1,171
)
    
(6,927
)
    
(334
)
    
(8,432
)
Recoveries
    
118
      
1,742
      
55
      
1,915
  
Provision
    
2,046
      
4,915
      
316
      
7,277
  
Ending Balance as of June 30, 2019
  
$
33,152
    
$
36,534
    
$
2,479
    
$
72,165
  
                                 
Balance as of March 31, 2018
  
$
28,190
    
$
36,973
    
$
5,037
    
$
70,200
  
Charge-offs
    
(907
)
    
(7,442
)
    
(208
)
    
(8,557
)
Recoveries
    
183
      
1,700
      
146
      
2,029
  
Provision
    
3,593
      
5,248
      
(63
)
    
8,778
  
Ending Balance as of June 30, 2018
  
$
31,059
    
$
36,479
    
$
4,912
    
$
72,450
  

(In thousands)
  
Commercial
Loans
    
Consumer
Loans
    
Residential
Real Estate
    
Total
  
Balance as of December 31, 2018
  
$
32,759
    
$
37,178
    
$
2,568
    
$
72,505
  
Charge-offs
    
(1,918
)
    
(14,360
)
    
(608
)
    
(16,886
)
Recoveries
    
212
      
3,141
      
109
      
3,462
  
Provision
    
2,099
      
10,575
      
410
      
13,084
  
Ending Balance as of June 30, 2019
  
$
33,152
    
$
36,534
    
$
2,479
    
$
72,165
  
                                 
Balance as of December 31, 2017
  
$
27,606
    
$
36,830
    
$
5,064
    
$
69,500
  
Charge-offs
    
(1,712
)
    
(15,129
)
    
(390
)
    
(17,231
)
Recoveries
    
370
      
3,344
      
193
      
3,907
  
Provision
    
4,795
      
11,434
      
45
      
16,274
  
Ending Balance as of June 30, 2018
  
$
31,059
    
$
36,479
    
$
4,912
    
$
72,450
  

The following tables illustrate the allowance for loan losses and the recorded investment by portfolio segments:


(In thousands)
  
Commercial
Loans
    
Consumer
Loans
    
Residential
Real Estate
    
Total
  
As of June 30, 2019
                        
Allowance for loan losses
  
$
33,152
    
$
36,534
    
$
2,479
    
$
72,165
  
Allowance for loans individually evaluated for impairment
    
11
      
-
      
-
      
11
  
Allowance for loans collectively evaluated for impairment
  
$
33,141
    
$
36,534
    
$
2,479
    
$
72,154
  
Ending balance of loans
  
$
3,325,064
    
$
2,234,130
    
$
1,404,079
    
$
6,963,273
  
Ending balance of originated loans individually evaluated for impairment
    
5,422
      
7,674
      
7,495
      
20,591
  
Ending balance of acquired loans collectively evaluated for impairment
    
139,710
      
27,582
      
137,622
      
304,914
  
Ending balance of originated loans collectively evaluated for impairment
  
$
3,179,932
    
$
2,198,874
    
$
1,258,962
    
$
6,637,768
  
                                 
As of December 31, 2018
                                
Allowance for loan losses
  
$
32,759
    
$
37,178
    
$
2,568
    
$
72,505
  
Allowance for loans individually evaluated for impairment
    
25
      
-
      
-
      
25
  
Allowance for loans collectively evaluated for impairment
  
$
32,734
    
$
37,178
    
$
2,568
    
$
72,480
  
Ending balance of loans
  
$
3,222,310
    
$
2,284,563
    
$
1,380,836
    
$
6,887,709
  
Ending balance of originated loans individually evaluated for impairment
    
5,786
      
7,887
      
6,905
      
20,578
  
Ending balance of acquired loans collectively evaluated for impairment
    
143,690
      
31,624
      
147,277
      
322,591
  
Ending balance of originated loans collectively evaluated for impairment
  
$
3,072,834
    
$
2,245,052
    
$
1,226,654
    
$
6,544,540
  

Past due and Nonperforming Loans by Loan Class The following tables set forth information with regard to past due and nonperforming loans by loan class:

(In thousands)
  
31-60 Days
Past Due
Accruing
    
61-90 Days
Past Due
Accruing
    
Greater
Than 90
Days Past
Due
Accruing
    
Total Past
Due
Accruing
    
Nonaccrual
    
Current
    
Recorded
Total
Loans
  
As of June 30, 2019
                                          
Originated
                                          
Commercial Loans:
                                          
C&I
  
$
43
    
$
1,100
    
$
-
    
$
1,143
    
$
952
    
$
867,661
    
$
869,756
  
CRE
    
4,791
      
370
      
-
      
5,161
      
4,596
      
1,822,746
      
1,832,503
  
Business Banking
    
1,537
      
295
      
-
      
1,832
      
6,314
      
474,949
      
483,095
  
Total Commercial Loans
  
$
6,371
    
$
1,765
    
$
-
    
$
8,136
    
$
11,862
    
$
3,165,356
    
$
3,185,354
  
Consumer Loans:
                                                        
Dealer Finance
  
$
11,710
    
$
1,842
    
$
741
    
$
14,293
    
$
1,737
    
$
1,173,640
    
$
1,189,670
  
Specialty Lending
    
3,452
      
1,880
      
1,481
      
6,813
      
-
      
513,161
      
519,974
  
Direct
    
2,554
      
631
      
145
      
3,330
      
2,650
      
490,924
      
496,904
  
Total Consumer Loans
  
$
17,716
    
$
4,353
    
$
2,367
    
$
24,436
    
$
4,387
    
$
2,177,725
    
$
2,206,548
  
Residential Real Estate
  
$
1,225
    
$
830
    
$
-
    
$
2,055
    
$
6,470
    
$
1,257,932
    
$
1,266,457
  
Total Originated Loans
  
$
25,312
    
$
6,948
    
$
2,367
    
$
34,627
    
$
22,719
    
$
6,601,013
    
$
6,658,359
  
                                                         
Acquired
                                                        
Commercial Loans:
                                                        
C&I
  
$
-
    
$
-
    
$
-
    
$
-
    
$
38
    
$
33,001
    
$
33,039
  
CRE
    
-
      
-
      
-
      
-
      
-
      
76,362
      
76,362
  
Business Banking
    
441
      
3
      
-
      
444
      
466
      
29,399
      
30,309
  
Total Commercial Loans
  
$
441
    
$
3
    
$
-
    
$
444
    
$
504
    
$
138,762
    
$
139,710
  
Consumer Loans:
                                                        
Direct
  
$
217
    
$
22
    
$
20
    
$
259
    
$
96
    
$
27,227
    
$
27,582
  
Total Consumer Loans
  
$
217
    
$
22
    
$
20
    
$
259
    
$
96
    
$
27,227
    
$
27,582
  
Residential Real Estate
  
$
648
    
$
488
    
$
-
    
$
1,136
    
$
1,350
    
$
135,136
    
$
137,622
  
Total Acquired Loans
  
$
1,306
    
$
513
    
$
20
    
$
1,839
    
$
1,950
    
$
301,125
    
$
304,914
  
                                                         
Total Loans
  
$
26,618
    
$
7,461
    
$
2,387
    
$
36,466
    
$
24,669
    
$
6,902,138
    
$
6,963,273
  

(In thousands)
  
31-60 Days
Past Due
Accruing
    
61-90 Days
Past Due
Accruing
    
Greater
Than 90
Days Past
Due
Accruing
    
Total Past
Due
Accruing
    
Nonaccrual
    
Current
    
Recorded
Total
Loans
  
As of December 31, 2018
                                          
Originated
                                          
Commercial Loans:
                                          
C&I
  
$
909
    
$
-
    
$
-
    
$
909
    
$
1,062
    
$
846,148
    
$
848,119
  
CRE
    
1,089
      
-
      
588
      
1,677
      
4,995
      
1,734,558
      
1,741,230
  
Business Banking
    
1,092
      
302
      
-
      
1,394
      
5,974
      
481,903
      
489,271
  
Total Commercial Loans
  
$
3,090
    
$
302
    
$
588
    
$
3,980
    
$
12,031
    
$
3,062,609
    
$
3,078,620
  
Consumer Loans:
                                                        
Dealer Finance
  
$
14,519
    
$
2,300
    
$
1,186
    
$
18,005
    
$
1,971
    
$
1,196,136
    
$
1,216,112
  
Specialty Lending
    
3,479
      
1,773
      
1,562
      
6,814
      
-
      
518,114
      
524,928
  
Direct
    
2,962
      
1,437
      
552
      
4,951
      
2,592
      
504,356
      
511,899
  
Total Consumer Loans
  
$
20,960
    
$
5,510
    
$
3,300
    
$
29,770
    
$
4,563
    
$
2,218,606
    
$
2,252,939
  
Residential Real Estate
  
$
1,426
    
$
157
    
$
1,182
    
$
2,765
    
$
6,778
    
$
1,224,016
    
$
1,233,559
  
Total Originated Loans
  
$
25,476
    
$
5,969
    
$
5,070
    
$
36,515
    
$
23,372
    
$
6,505,231
    
$
6,565,118
  
                                                         
Acquired
                                                        
Commercial Loans:
                                                        
C&I
  
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
26,124
    
$
26,124
  
CRE
    
-
      
-
      
-
      
-
      
-
      
84,492
      
84,492
  
Business Banking
    
466
      
288
      
-
      
754
      
390
      
31,930
      
33,074
  
Total Commercial Loans
  
$
466
    
$
288
    
$
-
    
$
754
    
$
390
    
$
142,546
    
$
143,690
  
Consumer Loans:
                                                        
Dealer Finance
  
$
1
    
$
1
    
$
-
    
$
2
    
$
-
    
$
30
    
$
32
  
Direct
    
152
      
41
      
15
      
208
      
227
      
31,157
      
31,592
  
Total Consumer Loans
  
$
153
    
$
42
    
$
15
    
$
210
    
$
227
    
$
31,187
    
$
31,624
  
Residential Real Estate
  
$
546
    
$
42
    
$
-
    
$
588
    
$
1,498
    
$
145,191
    
$
147,277
  
Total Acquired Loans
  
$
1,165
    
$
372
    
$
15
    
$
1,552
    
$
2,115
    
$
318,924
    
$
322,591
  
                                                         
Total Loans
  
$
26,641
    
$
6,341
    
$
5,085
    
$
38,067
    
$
25,487
    
$
6,824,155
    
$
6,887,709
  

Impaired Loans and Specific Reserve Allocations The following table provides information on loans specifically evaluated for impairment:


 
June 30, 2019
    
December 31, 2018
  
(In thousands)
  
Recorded
Investment
Balance
(Book)
    
Unpaid
Principal
Balance
(Legal)
    
Related
Allowance
    
Recorded
Investment
Balance
(Book)
    
Unpaid
Principal
Balance
(Legal)
    
Related
Allowance
  
Originated
                                    
With no related allowance recorded:
                                    
Commercial Loans:
                                    
C&I
  
$
119
    
$
363
    
$
      
$
228
    
$
497
    
$
    
CRE
    
4,181
      
6,195
              
4,312
      
6,330
          
Business Banking
    
1,011
      
1,961
              
1,013
      
2,001
          
Total Commercial Loans
  
$
5,311
    
$
8,519
            
$
5,553
    
$
8,828
          
Consumer Loans:
                                                
Dealer Finance
  
$
232
    
$
327
            
$
143
    
$
241
          
Direct
    
7,442
      
9,547
              
7,744
      
9,831
          
Total Consumer Loans
  
$
7,674
    
$
9,874
            
$
7,887
    
$
10,072
          
Residential Real Estate
  
$
7,495
    
$
10,190
            
$
6,905
    
$
9,414
          
Total
  
$
20,480
    
$
28,583
            
$
20,345
    
$
28,314
          
                                                 
With an allowance recorded:
                                                
Commercial Loans:
                                                
C&I
  
$
111
    
$
118
    
$
11
    
$
233
    
$
238
    
$
25
  
Total Commercial Loans
  
$
111
    
$
118
    
$
11
    
$
233
    
$
238
    
$
25
  
                                                 
Total Loans
  
$
20,591
    
$
28,701
    
$
11
    
$
20,578
    
$
28,552
    
$
25
  

The following tables summarize the average recorded investments on loans specifically evaluated for impairment and the interest income recognized:


 
For the Three Months Ended
  
   
June 30, 2019
    
June 30, 2018
  
(In thousands)
  
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Average
Recorded
Investment
    
Interest
Income
Recognized
  
Originated
                        
Commercial Loans:
                        
C&I
  
$
326
    
$
-
    
$
447
    
$
1
  
CRE
    
4,212
      
31
      
3,882
      
32
  
Business Banking
    
1,090
      
5
      
1,044
      
3
  
Total Commercial Loans
  
$
5,628
    
$
36
    
$
5,373
    
$
36
  
Consumer Loans:
                                
Dealer Finance
  
$
221
    
$
4
    
$
194
    
$
1
  
Direct
    
7,553
      
98
      
7,952
      
106
  
Total Consumer Loans
  
$
7,774
    
$
102
    
$
8,146
    
$
107
  
Residential Real Estate
  
$
7,455
    
$
82
    
$
6,738
    
$
71
  
Total Originated
  
$
20,857
    
$
220
    
$
20,257
    
$
214
  
                                 
Total Loans
  
$
20,857
    
$
220
    
$
20,257
    
$
214
  


 
For the Six Months Ended
  
   
June 30, 2019
    
June 30, 2018
  
(In thousands)
  
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Average
Recorded
Investment
    
Interest
Income
Recognized
  
Originated
                        
Commercial Loans:
                        
C&I
  
$
383
    
$
1
    
$
457
    
$
1
  
CRE
    
4,248
      
61
      
4,154
      
64
  
Business Banking
    
1,159
      
11
      
988
      
8
  
Total Commercial Loans
  
$
5,790
    
$
73
    
$
5,599
    
$
73
  
Consumer Loans:
                                
Dealer Finance
  
$
198
    
$
6
    
$
188
    
$
4
  
Direct
    
7,636
      
196
      
8,066
      
215
  
Total Consumer Loans
  
$
7,834
    
$
202
    
$
8,254
    
$
219
  
Residential Real Estate
  
$
7,323
    
$
159
    
$
6,815
    
$
144
  
Total Originated
  
$
20,947
    
$
434
    
$
20,668
    
$
436
  
                                 
Total Loans
  
$
20,947
    
$
434
    
$
20,668
    
$
436
  

Financing Receivable Credit Quality by Loan Class The following tables illustrate the Company’s credit quality by loan class:

(In thousands)
  
As of June 30, 2019
  
Originated
                  
Commercial Credit Exposure
By Internally Assigned Grade:
  
C&I
    
CRE
    
Total
  
Pass
  
$
799,988
    
$
1,750,029
    
$
2,550,017
  
Special Mention
    
30,012
      
33,912
      
63,924
  
Substandard
    
39,756
      
48,562
      
88,318
  
Total
  
$
869,756
    
$
1,832,503
    
$
2,702,259
  




Acquired
                  
Commercial Credit Exposure
                  
By Internally Assigned Grade:
  
C&I
    
CRE
    
Total
  
Pass
  
$
28,479
    
$
75,768
    
$
104,247
  
Special Mention
    
1,686
      
-
      
1,686
  
Substandard
    
2,874
      
594
      
3,468
  
Total
  
$
33,039
    
$
76,362
    
$
109,401
  


Consumer Credit Exposure
            
By Payment Activity:
  
Direct
    
Total
  
Performing
  
$
27,466
    
$
27,466
  
Nonperforming
    
116
      
116
  
Total
  
$
27,582
    
$
27,582
  


(In thousands)
  
As of December 31, 2018
  
Originated
                  
Commercial Credit Exposure
                  
By Internally Assigned Grade:
  
C&I
    
CRE
    
Total
  
Pass
  
$
796,778
    
$
1,681,330
    
$
2,478,108
  
Special Mention
    
11,348
      
13,894
      
25,242
  
Substandard
    
39,993
      
46,006
      
85,999
  
Total
  
$
848,119
    
$
1,741,230
    
$
2,589,349
  




Acquired
                  
Commercial Credit Exposure
                  
By Internally Assigned Grade:
  
C&I
    
CRE
    
Total
  
Pass
  
$
23,283
    
$
83,762
    
$
107,045
  
Special Mention
    
2,831
      
92
      
2,923
  
Substandard
    
10
      
638
      
648
  
Total
  
$
26,124
    
$
84,492
    
$
110,616
  




Troubled Debt Restructurings on Financing Receivables The following tables illustrate the recorded investment and number of modifications for modified loans, including the recorded investment in the loans prior to a modification and the recorded investment in the loans after restructuring:


 
Three Months Ended June 30, 2019
    
Three Months Ended June 30, 2018
  
(Dollars in thousands)
  
Number of
Contracts
    
Pre-
Modification
Outstanding
Recorded
Investment
    
Post-
Modification
Outstanding
Recorded
Investment
    
Number of
Contracts
    
Pre-
Modification
Outstanding
Recorded
Investment
    
Post-
Modification
Outstanding
Recorded
Investment
  
Commercial Loans:
                                    
Business Banking
    
-
    
$
-
    
$
-
      
1
    
$
6
    
$
5
  
Total Commercial Loans
    
-
    
$
-
    
$
-
      
1
    
$
6
    
$
5
  
Consumer Loans:
                                                
Dealer Finance
    
4
    
$
60
    
$
60
      
1
    
$
13
    
$
13
  
Direct
    
2
      
68
      
77
      
-
      
-
      
-
  
Total Consumer Loans
    
6
    
$
128
    
$
137
      
1
    
$
13
    
$
13
  
Residential Real Estate
    
2
    
$
369
    
$
381
      
-
    
$
-
    
$
-
  
Total Troubled Debt Restructurings
    
8
    
$
497
    
$
518
      
2
    
$
19
    
$
18
  


 
Six Months Ended June 30, 2019
    
Six Months Ended June 30, 2018
  
(Dollars in thousands)
  
Number of
Contracts
    
Pre-
Modification
Outstanding
Recorded
Investment
    
Post-
Modification
Outstanding
Recorded
Investment
    
Number of
Contracts
    
Pre-
Modification
Outstanding
Recorded
Investment
    
Post-
Modification
Outstanding
Recorded
Investment
  
Commercial Loans:
                                    
C&I
    
1
    
$
65
    
$
65
      
-
    
$
-
    
$
-
  
Business Banking
    
2
      
388
      
388
      
3
      
369
      
371
  
Total Commercial Loans
    
3
    
$
453
    
$
453
      
3
    
$
369
    
$
371
  
Consumer Loans:
                                                
Dealer Finance
    
9
    
$
134
    
$
134
      
7
    
$
95
    
$
94
  
Direct
    
8
      
388
      
398
      
2
      
41
      
41
  
Total Consumer Loans
    
17
    
$
522
    
$
532
      
9
    
$
136
    
$
135
  
Residential Real Estate
    
8
    
$
757
    
$
786
      
5
    
$
323
    
$
323
  
Total Troubled Debt Restructurings
    
28
    
$
1,732
    
$
1,771
      
17
    
$
828
    
$
829
  

The following tables illustrate the recorded investment and number of modifications for TDRs where a concession has been made and subsequently defaulted during the period:


  
Three Months Ended
June 30, 2019
    
Three Months Ended
June 30, 2018
  
(Dollars in thousands)
  
Number of
Contracts
    
Recorded
Investment
    
Number of
Contracts
    
Recorded
Investment
  
Commercial Loans:
                        
Business Banking
    
-
    
$
-
      
1
    
$
58
  
Total Commercial Loans
    
-
    
$
-
      
1
    
$
58
  
Consumer Loans:
                                
Direct
    
14
    
$
496
      
13
    
$
495
  
Total Consumer Loans
    
14
    
$
496
      
13
    
$
495
  
Residential Real Estate
    
8
    
$
429
      
7
    
$
599
  
Total Troubled Debt Restructurings
    
22
    
$
925
      
21
    
$
1,152
  


 
Six Months Ended
June 30, 2019
    
Six Months Ended
June 30, 2018
  
(Dollars in thousands)
  
Number of
Contracts
    
Recorded
Investment
    
Number of
Contracts
    
Recorded
Investment
  
Commercial Loans:
                        
Business Banking
    
-
    
$
-
      
2
    
$
258
  
Total Commercial Loans
    
-
    
$
-
      
2
    
$
258
  
Consumer Loans:
                                
Dealer Finance
    
2
    
$
17
      
-
    
$
-
  
Direct
    
19
      
958
      
25
      
1,260
  
Total Consumer Loans
    
21
    
$
975
      
25
    
$
1,260
  
Residential Real Estate
    
13
    
$
644
      
13
    
$
907
  
Total Troubled Debt Restructurings
    
34
    
$
1,619
      
40
    
$
2,425