XML 42 R31.htm IDEA: XBRL DOCUMENT v3.20.2
Allowance for Credit Losses and Credit Quality of Loans (Tables)
 6 Months Ended
Jun. 30, 2020
Allowance for Credit Losses and Credit Quality of Loans [Abstract]  
Allowance for Loan Losses by Portfolio
The following tables present the activity in the allowance for credit losses by portfolio segment:

(In thousands)
  
Commercial
Loans
    
Consumer
Loans
    
Residential
    
Total
  
Balance as of March 31, 2020
  
$
42,212
    
$
37,546
    
$
20,242
    
$
100,000
  
Charge-offs
    
(709
)
    
(6,178
)
    
(490
)
    
(7,377
)
Recoveries
    
113
      
1,810
      
114
      
2,037
  
Provision
    
8,770
      
6,916
      
3,154
      
18,840
  
Ending Balance as of June 30, 2020
  
$
50,386
    
$
40,094
    
$
23,020
    
$
113,500
  

(In thousands)
  
Commercial
Loans
    
Consumer
Loans
    
Residential
    
Total
  
Balance as of January 1, 2020 (after adoption of ASC 326)
  
$
27,156
    
$
32,122
    
$
16,721
    
$
75,999
  
Charge-offs
    
(1,729
)
    
(13,069
)
    
(805
)
    
(15,603
)
Recoveries
    
341
      
4,045
      
238
      
4,624
  
Provision
    
24,618
      
16,996
      
6,866
      
48,480
  
Ending Balance as of June 30, 2020
  
$
50,386
    
$
40,094
    
$
23,020
    
$
113,500
  
The following table illustrates 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
  

(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
  

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

(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
  
Past due and Nonperforming Loans by Loan Class
The following table sets forth information with regard to past due and nonperforming loans by loan segment:

(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, 2020
                                          
Commercial Loans:
                                          
Commercial & Industrial
  
$
550
    
$
39
    
$
90
    
$
679
    
$
2,992
    
$
1,125,180
    
$
1,128,851
  
Commercial Real Estate
    
371
      
1,197
      
-
      
1,568
      
8,550
      
2,325,876
      
2,335,994
  
Paycheck Protection Plan
    
-
      
-
      
-
      
-
      
-
      
510,097
      
510,097
  
Total Commercial Loans
  
$
921
    
$
1,236
    
$
90
    
$
2,247
    
$
11,542
    
$
3,961,153
    
$
3,974,942
  
Consumer Loans:
                                                        
Auto
  
$
6,012
    
$
1,418
    
$
673
    
$
8,103
    
$
2,452
    
$
1,038,232
    
$
1,048,787
  
Other Consumer
    
3,310
      
1,546
      
1,042
      
5,898
      
243
      
586,108
      
592,249
  
Total Consumer Loans
  
$
9,322
    
$
2,964
    
$
1,715
    
$
14,001
    
$
2,695
    
$
1,624,340
    
$
1,641,036
  
Residential
  
$
4,688
    
$
1,238
    
$
252
    
$
6,178
    
$
11,330
    
$
1,994,505
    
$
2,012,013
  
Total Loans
  
$
14,931
    
$
5,438
    
$
2,057
    
$
22,426
    
$
25,567
    
$
7,579,998
    
$
7,627,991
  
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 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
  
Financing Receivable Credit Quality by Loan Class
The following tables illustrate the Company’s credit quality by loan class by vintage:

(In thousands)
  
2020
    
2019
    
2018
    
2017
    
2016
    
Prior
    
Revolving
Loans
Amortized
Cost Basis
    
Revolving
Loans
Converted
to Term
    
Total
  
                                                       
Commercial & Industrial
                                                      
By Internally Assigned Grade:
                                                      
Pass
  
$
188,416
    
$
215,181
    
$
109,174
    
$
61,336
    
$
46,937
    
$
42,658
    
$
361,229
    
$
976
    
$
1,025,907
  
Special Mention
    
700
      
16,231
      
7,001
      
5,833
      
4,111
      
3,923
      
30,708
      
-
      
68,507
  
Substandard
    
1,186
      
3,574
      
9,791
      
3,336
      
1,147
      
6,468
      
8,715
      
1
      
34,218
  
Doubtful
    
-
      
-
      
-
      
219
      
-
      
-
      
-
      
-
      
219
  
Total Commercial & Industrial
  
$
190,302
    
$
234,986
    
$
125,966
    
$
70,724
    
$
52,195
    
$
53,049
    
$
400,652
    
$
977
    
$
1,128,851
  
                                                                         
Commercial Real Estate
                                                                        
By Internally Assigned Grade:
                                                                        
Pass
  
$
241,844
    
$
395,753
    
$
263,881
    
$
320,976
    
$
225,572
    
$
452,302
    
$
82,421
    
$
703
    
$
1,983,452
  
Special Mention
    
3,221
      
45,851
      
38,192
      
57,295
      
41,079
      
65,378
      
10,713
      
-
      
261,729
  
Substandard
    
196
      
4,528
      
6,197
      
3,976
      
4,597
      
60,062
      
11,257
      
-
      
90,813
  
Total Commercial Real Estate
  
$
245,261
    
$
446,132
    
$
308,270
    
$
382,247
    
$
271,248
    
$
577,742
    
$
104,391
    
$
703
    
$
2,335,994
  
                                                                         
Paycheck Protection Plan
                                                                        
By Internally Assigned Grade:
                                                                        
Pass
  
$
510,097
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
510,097
  
Total Paycheck Protection Plan
  
$
510,097
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
-
    
$
510,097
  
                                                                         
Auto
                                                                        
By Payment Activity:
                                                                        
Performing
  
$
134,078
    
$
381,783
    
$
261,558
    
$
164,661
    
$
73,374
    
$
30,184
    
$
24
    
$
-
    
$
1,045,662
  
Nonperforming
    
69
      
872
      
1,169
      
576
      
439
      
-
      
-
      
-
      
3,125
  
Total Auto
  
$
134,147
    
$
382,655
    
$
262,727
    
$
165,237
    
$
73,813
    
$
30,184
    
$
24
    
$
-
    
$
1,048,787
  
                                                                         
Other Consumer
                                                                        
By Payment Activity:
                                                                        
Performing
  
$
107,544
    
$
196,607
    
$
153,420
    
$
70,130
    
$
21,537
    
$
22,642
    
$
19,065
    
$
18
    
$
590,963
  
Nonperforming
    
148
      
231
      
330
      
263
      
178
      
124
      
12
      
-
      
1,286
  
Total Other Consumer
  
$
107,692
    
$
196,838
    
$
153,750
    
$
70,393
    
$
21,715
    
$
22,766
    
$
19,077
    
$
18
    
$
592,249
  
                                                                         
Residential
                                                                        
By Payment Activity:
                                                                        
Performing
  
$
109,485
    
$
229,947
    
$
235,193
    
$
198,283
    
$
179,197
    
$
766,771
    
$
266,042
    
$
15,514
    
$
2,000,432
  
Nonperforming
    
34
      
485
      
651
      
1,365
      
351
      
8,695
      
-
      
-
      
11,581
  
Total Residential
  
$
109,519
    
$
230,432
    
$
235,844
    
$
199,648
    
$
179,548
    
$
775,466
    
$
266,042
    
$
15,514
    
$
2,012,013
  
                                                                         
Total Loans
  
$
1,297,018
    
$
1,491,043
    
$
1,086,557
    
$
888,249
    
$
598,519
    
$
1,459,207
    
$
790,186
    
$
17,212
    
$
7,627,991
  

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
  
Troubled Debt Restructurings on Financing Receivables
The following tables illustrate the recorded investment and number of modifications designated as TDRs, 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, 2020
    
Six Months Ended June 30, 2020
  
(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
  
Consumer Loans:
                                    
Auto
    
-
    
$
-
    
$
-
      
1
    
$
44
    
$
44
  
Total Consumer Loans
    
-
    
$
-
    
$
-
      
1
    
$
44
    
$
44
  
Residential
    
7
    
$
269
    
$
294
      
14
    
$
960
    
$
1,029
  
Total Troubled Debt Restructurings
    
7
    
$
269
    
$
294
      
15
    
$
1,004
    
$
1,073
  

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:

  
Three Months Ended
June 30, 2020
    
Six Months Ended
June 30, 2020
  
(Dollars in thousands)
  
Number of
Contracts
    
Recorded
Investment
    
Number of
Contracts
    
Recorded
Investment
  
Commercial Loans:
                        
Commercial & Industrial
    
-
    
$
-
      
1
    
$
387
  
Commercial Real Estate
    
1
      
168
      
1
      
168
  
Total Commercial Loans
    
1
    
$
168
      
2
    
$
555
  
Residential
    
26
    
$
1,505
      
38
    
$
2,192
  
Total Troubled Debt Restructurings
    
27
    
$
1,673
      
40
    
$
2,747
  
The following table illustrates 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
    
Six Months Ended
June 30, 2019
  
(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
  
Total Commercial Loans
    
-
    
$
-
    
$
-
      
3
    
$
453
    
$
453
  
Consumer Loans:
                                                
Indirect Auto
    
4
    
$
60
    
$
60
      
9
    
$
134
    
$
134
  
Direct
    
2
      
68
      
77
      
8
      
388
      
398
  
Total Consumer Loans
    
6
    
$
128
    
$
137
      
17
    
$
522
    
$
532
  
Residential Real Estate
    
2
    
$
369
    
$
381
      
8
    
$
757
    
$
786
  
Total Troubled Debt Restructurings
    
8
    
$
497
    
$
518
      
28
    
$
1,732
    
$
1,771
  

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:

  
Three Months Ended
June 30, 2019
    
Six Months Ended
June 30, 2019
  
(Dollars in thousands)
  
Number of
Contracts
    
Recorded
Investment
    
Number of
Contracts
    
Recorded
Investment
  
Consumer Loans:
                        
Indirect Auto
    
-
    
$
-
      
2
    
$
17
  
Direct
    
14
      
496
      
19
      
958
  
Total Consumer Loans
    
14
    
$
496
      
21
    
$
975
  
Residential Real Estate
    
8
    
$
429
      
13
    
$
644
  
Total Troubled Debt Restructurings
    
22
    
$
925
      
34
    
$
1,619
  
Impaired Loans and Specific Reserve Allocations
The following table provides information on impaired loans specifically evaluated for impairment:

  
December 31, 2019
  
(In thousands)
  
Recorded Investment
Balance (Book)
    
Unpaid
Principal
Balance (Legal)
    
Related
Allowance
  
Originated
                  
With no related allowance recorded:
                  
Commercial Loans:
                  
C&I
  
$
76
    
$
302
    
$
    
CRE
    
2,410
      
2,437
          
Business Banking
    
1,002
      
1,443
          
Total Commercial Loans
  
$
3,488
    
$
4,182
          
Consumer Loans:
                        
Indirect Auto
  
$
154
    
$
242
          
Direct
    
6,862
      
8,335
          
Specialty Lending
    
28
      
28
          
Total Consumer Loans
  
$
7,044
    
$
8,605
          
Residential Real Estate
  
$
7,721
    
$
9,754
          
Total
  
$
18,253
    
$
22,541
          
                         
Total Loans
  
$
18,253
    
$
22,541
    
$
-
  

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

  
Three Months Ended
    
Six Months Ended
  
   
June 30, 2019
    
June 30, 2019
  
(In thousands)
  
Average
Recorded
Investment
    
Interest
Income
Recognized
    
Average
Recorded
Investment
    
Interest
Income
Recognized
  
Originated
                        
Commercial Loans:
                        
C&I
  
$
326
    
$
-
    
$
383
    
$
1
  
CRE
    
4,212
      
31
      
4,248
      
61
  
Business Banking
    
1,090
      
5
      
1,159
      
11
  
Total Commercial Loans
  
$
5,628
    
$
36
    
$
5,790
    
$
73
  
Consumer Loans:
                                
Indirect Auto
  
$
221
    
$
4
    
$
198
    
$
6
  
Direct
    
7,553
      
98
      
7,636
      
196
  
Total Consumer Loans
  
$
7,774
    
$
102
    
$
7,834
    
$
202
  
Residential Real Estate
  
$
7,455
    
$
82
    
$
7,323
    
$
159
  
Total Originated
  
$
20,857
    
$
220
    
$
20,947
    
$
434
  
                                 
Total Loans
  
$
20,857
    
$
220
    
$
20,947
    
$
434