XML 24 R41.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Allowance for Loan Losses and Credit Quality of Loans (Tables)
 12 Months Ended
Dec. 31, 2019
Allowance for Loan Losses and Credit Quality of Loans [Abstract]  
Portfolio and Class Segments
Portfolio
Class - 2019 & 2018
Class - 2017
 Commercial Loans
Commercial and Industrial
Commercial
 
Commercial Real Estate
Commercial Real Estate
 
Business Banking
Agricultural
   
Agricultural Real Estate
   
Business Banking
 Consumer Loans
Indirect Auto
Indirect
 
Specialty Lending
Home Equity
 
Direct
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 December 31, 2018
  
$
32,759
    
$
37,178
    
$
2,568
    
$
72,505
  
Charge-offs
    
(3,151
)
    
(28,398
)
    
(991
)
    
(32,540
)
Recoveries
    
534
      
6,913
      
141
      
7,588
  
Provision
    
4,383
      
19,954
      
1,075
      
25,412
  
Ending Balance as of December 31, 2019
  
$
34,525
    
$
35,647
    
$
2,793
    
$
72,965
  
                                 
Balance as of December 31, 2017
  
$
27,606
    
$
36,830
    
$
5,064
    
$
69,500
  
Charge-offs
    
(3,463
)
    
(29,752
)
    
(913
)
    
(34,128
)
Recoveries
    
1,178
      
6,821
      
306
      
8,305
  
Provision
    
7,438
      
23,279
      
(1,889
)
    
28,828
  
Ending Balance as of December 31, 2018
  
$
32,759
    
$
37,178
    
$
2,568
    
$
72,505
  
                                 
Balance as of December 31, 2016
  
$
25,444
    
$
33,375
    
$
6,381
    
$
65,200
  
Charge-offs
    
(4,169
)
    
(27,072
)
    
(1,846
)
    
(33,087
)
Recoveries
    
1,077
      
5,142
      
180
      
6,399
  
Provision
    
5,254
      
25,385
      
349
      
30,988
  
Ending Balance as of December 31, 2017
  
$
27,606
    
$
36,830
    
$
5,064
    
$
69,500
  

The following table illustrates the allowance for loan losses and the recorded investment by portfolio segment: 

 (In thousands)
  
Commercial
Loans
    
Consumer
Loans
    
Residential
Real Estate
    
Total
  
As of December 31, 2019
                        
Allowance for loan losses
  
$
34,525
    
$
35,647
    
$
2,793
    
$
72,965
  
Allowance for loans individually evaluated for impairment
    
-
      
-
      
-
      
-
  
Allowance for loans collectively evaluated for impairment
  
$
34,525
    
$
35,647
    
$
2,793
    
$
72,965
  
Ending balance of loans
  
$
3,444,266
    
$
2,246,676
    
$
1,445,156
    
$
7,136,098
  
Ending balance of originated loans individually evaluated for impairment
    
3,488
      
7,044
      
7,721
      
18,253
  
Ending balance of acquired loans collectively evaluated for impairment
    
115,266
      
23,733
      
125,879
      
264,878
  
Ending balance of originated loans collectively evaluated for impairment
  
$
3,325,512
    
$
2,215,899
    
$
1,311,556
    
$
6,852,967
  
                                 
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 table sets 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 December 31, 2019
                                          
Originated
                                          
Commercial Loans:
                                          
C&I
  
$
1,227
    
$
-
    
$
-
    
$
1,227
    
$
1,177
    
$
838,502
    
$
840,906
  
CRE
    
3,576
      
-
      
-
      
3,576
      
4,847
      
1,941,143
      
1,949,566
  
Business Banking
    
794
      
162
      
-
      
956
      
7,035
      
530,537
      
538,528
  
Total Commercial Loans
  
$
5,597
    
$
162
    
$
-
    
$
5,759
    
$
13,059
    
$
3,310,182
    
$
3,329,000
  
Consumer Loans:
                                                        
Indirect Auto
  
$
11,860
    
$
2,108
    
$
1,005
    
$
14,973
    
$
2,175
    
$
1,176,487
    
$
1,193,635
  
Specialty Lending
    
3,153
      
2,087
      
1,307
      
6,547
      
-
      
535,516
      
542,063
  
Direct
    
2,564
      
564
      
478
      
3,606
      
2,475
      
481,164
      
487,245
  
Total Consumer Loans
  
$
17,577
    
$
4,759
    
$
2,790
    
$
25,126
    
$
4,650
    
$
2,193,167
    
$
2,222,943
  
Residential Real Estate
  
$
1,179
    
$
190
    
$
663
    
$
2,032
    
$
5,872
    
$
1,311,373
    
$
1,319,277
  
Total Originated Loans 
  
$
24,353
    
$
5,111
    
$
3,453
    
$
32,917
    
$
23,581
    
$
6,814,722
    
$
6,871,220
  
                                                         
Acquired
                                                        
Commercial Loans:
                                                        
C&I
  
$
149
    
$
-
    
$
-
    
$
149
    
$
-
    
$
19,215
    
$
19,364
  
CRE
    
-
      
-
      
-
      
-
      
-
      
60,937
      
60,937
  
Business Banking
    
397
      
287
      
-
      
684
      
382
      
33,899
      
34,965
  
Total Commercial Loans
  
$
546
    
$
287
    
$
-
    
$
833
    
$
382
    
$
114,051
    
$
115,266
  
Consumer Loans:
                                                        
Direct
  
$
136
    
$
58
    
$
-
    
$
194
    
$
105
    
$
23,434
    
$
23,733
  
Total Consumer Loans
  
$
136
    
$
58
    
$
-
    
$
194
    
$
105
    
$
23,434
    
$
23,733
  
Residential Real Estate
  
$
575
    
$
20
    
$
264
    
$
859
    
$
1,106
    
$
123,914
    
$
125,879
  
Total Acquired Loans
  
$
1,257
    
$
365
    
$
264
    
$
1,886
    
$
1,593
    
$
261,399
    
$
264,878
  
                                                         
Total Loans
  
$
25,610
    
$
5,476
    
$
3,717
    
$
34,803
    
$
25,174
    
$
7,076,121
    
$
7,136,098
  

(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:
                                                        
Indirect Auto
  
$
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:
                                                        
Indirect Auto
  
$
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:


 
December 31, 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
  
$
76
    
$
302
          
$
228
    
$
497
        
CRE
    
2,410
      
2,437
      
-
      
4,312
      
6,330
      
-
  
Business Banking
    
1,002
      
1,443
              
1,013
      
2,001
          
Total Commercial Loans
  
$
3,488
    
$
4,182
            
$
5,553
    
$
8,828
          
Consumer Loans:
                                                
Indirect Auto
  
$
154
    
$
242
            
$
143
    
$
241
          
Direct
    
6,862
      
8,335
              
7,744
      
9,831
          
Specialty Lending
    
28
      
28
              
-
      
-
          
Total Consumer Loans
  
$
7,044
    
$
8,605
            
$
7,887
    
$
10,072
          
Residential Real Estate
  
$
7,721
    
$
9,754
            
$
6,905
    
$
9,414
          
Total
  
$
18,253
    
$
22,541
            
$
20,345
    
$
28,314
          
With an allowance recorded:
                                                
Commercial Loans:
                                                
C&I
  
$
-
    
$
-
    
$
-
    
$
233
    
$
238
    
$
25
  
    Total Commercial Loans
  
$
-
    
$
-
    
$
-
    
$
233
    
$
238
    
$
25
  
                                                 
Total Loans
  
$
18,253
    
$
22,541
    
$
-
    
$
20,578
    
$
28,552
    
$
25
  

There were no acquired impaired loans specifically evaluated for impairment as of December 31, 2019 and 2018.

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


  
December 31, 2019
    
December 31, 2018
    
December 31, 2017
  
(In thousands)
  
Average
Recorded
Investment
    
Interest Income
Recognized
    
Average
Recorded
Investment
    
Interest Income
Recognized
    
Average
Recorded
Investment
    
Interest Income
Recognized
  
Originated
                                    
Commercial Loans:
                                    
C&I
  
$
242
    
$
1
    
$
453
    
$
1
    
$
-
    
$
-
  
CRE
    
3,311
      
123
      
4,078
      
128
      
-
      
-
  
Commercial
    
-
      
-
      
-
      
-
      
1,841
      
-
  
Commercial Real Estate
    
-
      
-
      
-
      
-
      
3,534
      
115
  
Agricultural
    
-
      
-
      
-
      
-
      
224
      
1
  
Agricultural Real Estate
    
-
      
-
      
-
      
-
      
1,709
      
43
  
Business Banking
    
1,089
      
24
      
1,018
      
26
      
875
      
12
  
Total Commercial Loans
  
$
4,642
    
$
148
    
$
5,549
    
$
155
    
$
8,183
    
$
171
  
Consumer Loans:
                                                
Indirect Auto
  
$
192
    
$
10
    
$
179
    
$
10
    
$
-
    
$
-
  
Direct
    
7,387
      
382
      
7,922
      
431
      
-
      
-
  
Specialty Lending
    
7
      
1
      
-
      
-
      
-
      
-
  
Indirect
    
-
      
-
      
-
      
-
      
35
      
3
  
Home Equity
    
-
      
-
      
-
      
-
      
8,226
      
446
  
Direct
    
-
      
-
      
-
      
-
      
178
      
8
  
Total Consumer Loans
  
$
7,586
    
$
393
    
$
8,101
    
$
441
    
$
8,439
    
$
457
  
Residential Real Estate
  
$
7,505
    
$
350
    
$
6,779
    
$
305
    
$
6,523
    
$
296
  
Total Originated
  
$
19,733
    
$
891
    
$
20,429
    
$
901
    
$
23,145
    
$
924
  
                                                 
Acquired
                                                
Commercial Loans:
                                                
Commercial Real Estate
  
$
-
    
$
-
    
$
-
    
$
-
    
$
93
    
$
-
  
Total Commercial Loans
  
$
-
    
$
-
    
$
-
    
$
-
    
$
93
    
$
-
  
Total Acquired Loans
  
$
-
    
$
-
    
$
-
    
$
-
    
$
93
    
$
-
  
                                                 
Total Loans
  
$
19,733
    
$
891
    
$
20,429
    
$
901
    
$
23,238
    
$
924
  
Financing Receivable Credit Quality by Loan Class
The following tables illustrate the Company’s credit quality by loan class:

(In thousands)
  
As of December 31, 2019
  
Originated
                  
Commercial Credit Exposure
                  
By Internally Assigned Grade:
  
C&I
    
CRE
    
Total
  
Pass
  
$
782,763
    
$
1,868,678
    
$
2,651,441
  
Special Mention
    
28,380
      
30,519
      
58,899
  
Substandard
    
29,257
      
50,369
      
79,626
  
Doubtful
    
506
      
-
      
506
  
Total
  
$
840,906
    
$
1,949,566
    
$
2,790,472
  

Business Banking Credit Exposure
            
By Internally Assigned Grade:
  
Business Banking
    
Total
  
Non-classified
  
$
524,725
    
$
524,725
  
Classified
    
13,803
      
13,803
  
Total
  
$
538,528
    
$
538,528
  

Consumer Credit Exposure
                        
By Payment Activity:
  
Indirect Auto
    
Specialty Lending
    
Direct
    
Total
  
Performing
  
$
1,190,455
    
$
540,756
    
$
484,292
    
$
2,215,503
  
Nonperforming
    
3,180
      
1,307
      
2,953
      
7,440
  
Total
  
$
1,193,635
    
$
542,063
    
$
487,245
    
$
2,222,943
  

Residential Real Estate Credit Exposure
            
By Payment Activity:
  
Residential Real Estate
    
Total
  
Performing
  
$
1,312,742
    
$
1,312,742
  
Nonperforming
    
6,535
      
6,535
  
Total
  
$
1,319,277
    
$
1,319,277
  

Acquired
                  
Commercial Credit Exposure
                  
By Internally Assigned Grade:
  
C&I
    
CRE
    
Total
  
Pass
  
$
17,801
    
$
60,545
    
$
78,346
  
Special Mention
    
1,269
      
-
      
1,269
  
Substandard
    
294
      
392
      
686
  
Total
  
$
19,364
    
$
60,937
    
$
80,301
  

Business Banking Credit Exposure
            
By Internally Assigned Grade:
  
Business Banking
    
Total
  
Non-classified
  
$
32,030
    
$
32,030
  
Classified
    
2,935
      
2,935
  
Total
  
$
34,965
    
$
34,965
  

Consumer Credit Exposure
            
By Payment Activity:
  
Direct
    
Total
  
Performing
  
$
23,628
    
$
23,628
  
Nonperforming
    
105
      
105
  
Total
  
$
23,733
    
$
23,733
  

Residential Real Estate Credit Exposure
            
By Payment Activity:
  
Residential Real Estate
    
Total
  
Performing
  
$
124,509
    
$
124,509
  
Nonperforming
    
1,370
      
1,370
  
Total
  
$
125,879
    
$
125,879
  

(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
  

Business Banking Credit Exposure
  
Business
        
By Internally Assigned Grade:
  
Banking
    
Total
  
Non-classified
  
$
476,052
    
$
476,052
  
Classified
    
13,219
      
13,219
  
Total
  
$
489,271
    
$
489,271
  

Consumer Credit Exposure
                        
By Payment Activity:
  
Indirect Auto
    
Specialty Lending
    
Direct
    
Total
  
Performing
  
$
1,212,955
    
$
523,366
    
$
508,755
    
$
2,245,076
  
Nonperforming
    
3,157
      
1,562
      
3,144
      
7,863
  
Total
  
$
1,216,112
    
$
524,928
    
$
511,899
    
$
2,252,939
  

Residential Real Estate Credit Exposure
  
Residential
        
By Payment Activity:
  
Real Estate
    
Total
  
Performing
  
$
1,225,599
    
$
1,225,599
  
Nonperforming
    
7,960
      
7,960
  
Total
  
$
1,233,559
    
$
1,233,559
  

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
  

Business Banking Credit Exposure
  
Business
        
By Internally Assigned Grade:
  
Banking
    
Total
  
Non-classified
  
$
29,945
    
$
29,945
  
Classified
    
3,129
      
3,129
  
Total
  
$
33,074
    
$
33,074
  

Consumer Credit Exposure
                  
By Payment Activity:
  
Indirect Auto
    
Direct
    
Total
  
Performing
  
$
32
    
$
31,350
    
$
31,382
  
Nonperforming
    
-
      
242
      
242
  
Total
  
$
32
    
$
31,592
    
$
31,624
  

Residential Real Estate Credit Exposure
  
Residential
        
By Payment Activity:
  
Real Estate
    
Total
  
Performing
  
$
145,779
    
$
145,779
  
Nonperforming
    
1,498
      
1,498
  
Total
  
$
147,277
    
$
147,277
  
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:


  
Year ended December 31, 2019
  
(Dollars in thousands)
  
Number of
Contracts
    
Pre-
Modification
Outstanding
Recorded
Investment
    
Post-
Modification
Outstanding
Recorded
Investment
  
Commercial Loans:
                  
C&I
    
1
    
$
65
    
$
65
  
CRE
    
1
      
402
      
402
  
Business Banking
    
3
      
425
      
431
  
Total Commercial Loans
    
5
    
$
892
    
$
898
  
Consumer Loans:
                        
Indirect Auto
    
9
    
$
134
    
$
134
  
Direct
    
11
      
450
      
480
  
Total Consumer Loans
    
20
    
$
584
    
$
614
  
Residential Real Estate
    
12
    
$
1,032
    
$
1,091
  
Total Troubled Debt Restructurings
    
37
    
$
2,508
    
$
2,603
  


 
Year ended December 31, 2018
  
(Dollars In thousands)
  
Number of
Contracts
    
Pre-
Modification
Outstanding
Recorded
Investment
    
Post-
Modification
Outstanding
Recorded
Investment
  
Commercial Loans:
                  
Business Banking
    
5
    
$
581
    
$
581
  
Total Commercial Loans
    
5
    
$
581
    
$
581
  
Consumer Loans:
                        
Indirect Auto
    
17
    
$
204
    
$
202
  
Direct
    
10
      
401
      
399
  
Total Consumer Loans
    
27
    
$
605
    
$
601
  
Residential Real Estate
    
14
    
$
1,099
    
$
1,098
  
Total Troubled Debt Restructurings
    
46
    
$
2,285
    
$
2,280
  

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


  
Year ended December 31, 2019
    
Year ended December 31, 2018
  
(Dollars in thousands)
  
Number of
Contracts
    
Recorded
Investment
    
Number of
Contracts
    
Recorded
Investment
  
Commercial Loans:
                        
Business Banking
    
-
    
$
-
      
3
    
$
338
  
Total Commercial Loans
    
-
    
$
-
      
3
    
$
338
  
Consumer Loans:
                                
Indirect Auto
    
3
    
$
18
      
-
    
$
-
  
Direct
    
29
      
1,385
      
37
      
1,931
  
Total Consumer Loans
    
32
    
$
1,403
      
37
    
$
1,931
  
Residential Real Estate
    
23
    
$
1,203
      
26
    
$
1,786
  
Total Troubled Debt Restructurings
    
55
    
$
2,606
      
66
    
$
4,055