Allowance for Loan Losses and Credit Quality Information (Tables)

6 Months Ended

Jun. 30, 2015

Schedule of Allowance for Loan Losses and Loan Balances

The following tables provide the activity of our allowance for loan losses and loan balances for three and six months ended June 30, 2015:


(In Thousands)	Commercial			Owner- Occupied Commercial			Commercial Mortgages			Construction		Residential			Consumer			Complexity Risk ⁽¹⁾			Total
Three months ended June 30, 2015
Allowance for loan losses
Beginning balance	$	13,048		$	7,039		$	6,524		$	2,952	$	2,380		$	6,026		$	1,538		$	39,507
Charge-offs		(1,903	)		(272	)		—			—		(147	)		(620	)		—			(2,942	)
Recoveries		91			18			28			111		26			233			—			507
Provision (credit)		2,788			(80	)		50			249		448			149			(579	)		3,025
Provision for acquired loans		488			28			229			1		2			—			—			748

Ending balance	$	14,512		$	6,733		$	6,831		$	3,313	$	2,709		$	5,788		$	959		$	40,845

Six months ended June 30, 2015
Allowance for loan losses
Beginning balance	$	12,837		$	6,643		$	7,266		$	2,596	$	2,523		$	6,041		$	1,520		$	39,426
Charge-offs		(2,037	)		(597	)		(4	)		—		(267	)		(1,071	)		—			(3,976	)
Recoveries		114			22			69			160		37			434			—			836
Provision (credit)		3,110			637			(729	)		556		414			384			(561	)	$	3,811
Provision for acquired loans		488			28			229			1		2			—			—			748

Ending balance	$	14,512		$	6,733		$	6,831		$	3,313	$	2,709		$	5,788		$	959		$	40,845

Period-end allowance allocated to:
Loans individually evaluated for impairment	$	4,819		$	75		$	177		$	214	$	1,178		$	188		$	—		$	6,651
Loans collectively evaluated for impairment		9,205			6,630			6,425			3,098		1,529			5,600			959			33,446
Acquired loans evaluated for impairment		488			28			229			1		2			—			—			748

Ending balance	$	14,512		$	6,733		$	6,831		$	3,313	$	2,709		$	5,788		$	959		$	40,845

Period-end loan balances evaluated for:
Loans individually evaluated for impairment	$	9,938		$	1,389		$	7,329		$	1,419	$	15,198		$	6,055		$	—		$	41,328	⁽²⁾
Loans collectively evaluated for impairment		893,774			750,514			827,381			188,251		181,169			316,213			—			3,157,302
Acquired nonimpaired loans		29,894			39,132			29,558			8,696		15,970			6,608			—			129,858
Acquired impaired loans		3,159			2,027			5,884			3,479		460			8			—			15,017

Ending balance	$	936,765		$	793,062		$	870,152		$	201,845	$	212,797		$	328,884		$	—		$	3,343,505	⁽³⁾

The following table provides the activity of the allowance for loan losses and loan balances for the three and six months ended June 30, 2014:


(In Thousands)	Commercial			Owner Occupied Commercial			Commercial Mortgages			Construction			Residential			Consumer			Complexity Risk ⁽¹⁾		Total
Three months ended June 30, 2014
Allowance for loan losses
Beginning balance	$	12,404		$	8,789		$	7,363		$	2,716		$	2,765		$	6,249		$	1,042	$	41,328
Charge-offs		(382	)		(124	)		—			—			(163	)		(490	)		—		(1,159	)
Recoveries		483			161			2			177			25			314			—		1,162
Provision (credit)		841			(840	)		252			(574	)		132			226			13		50

Ending balance	$	13,346		$	7,986		$	7,617		$	2,319		$	2,759		$	6,299		$	1,055	$	41,381

Six months ended June 30, 2014
Allowance for loan losses
Beginning balance	$	12,751		$	7,638		$	6,932		$	3,326		$	3,078		$	6,494		$	1,025	$	41,244
Charge-offs		(1,495	)		(321	)		(160	)		(88	)		(527	)		(1,723	)		—		(4,314	)
Recoveries		807			167			39			184			43			531			—		1,771
Provision (credit)		1,283			502			806			(1,103	)		165			997			30		2,680

Ending balance	$	13,346		$	7,986		$	7,617		$	2,319		$	2,759		$	6,299		$	1,055	$	41,381

Period-end allowance allocated to:
Loans individually evaluated for impairment	$	1,881		$	1,157		$	307		$	—		$	872		$	184		$	—	$	4,401
Loans collectively evaluated for impairment		11,465			6,829			7,310			2,319			1,887			6,115			1,055		36,980

Ending balance	$	13,346		$	7,986		$	7,617		$	2,319		$	2,759		$	6,299		$	1,055	$	41,381

Period-end loan balances evaluated for:
Loans individually evaluated for impairment	$	4,109		$	4,928		$	13,483		$	—		$	17,743		$	5,577		$	—	$	45,840	⁽²⁾
Loans collectively evaluated for impairment		853,245			773,329			749,607			119,333			193,180			306,943			—		2,995,637

Ending balance	$	857,354		$	778,257		$	763,090		$	119,333		$	210,923		$	312,520		$	—	$	3,041,477	⁽³⁾

⁽¹⁾	Represents the portion of the allowance for loan losses established to account for the inherent complexity and uncertainty of estimates.

⁽²⁾	The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $13.6 million and $11.8 million for the periods ending June 30, 2015 and June 30, 2014, respectively. Accruing troubled debt restructured loans are considered impaired loans.

⁽³⁾	Ending loan balances do not include deferred costs.

Summary of Nonaccrual and Past Due Loans

The following tables show our nonaccrual and past due loans at the dates indicated:

Greater Than

Total
Past

30–59 Days

60–89 Days

90 Days

Due

Accruing

Acquired

June 30, 2015

Past Due and

And Still

Current

Impaired

Nonaccrual

Total

(In Thousands)

Still Accruing

Accruing

Balances

Loans

Commercial

135

—

135

923,924

3,159

9,547

936,765

Owner-Occupied commercial

144

—

144

789,501

2,027

1,390

793,062

Commercial mortgages

390

—

476

856,549

5,884

7,243

870,152

Construction

—

198,366

3,479

—

201,845

Residential

2,706

933

153

3,792

201,878

460

6,667

212,797

Consumer

1,050

113

—

1,163

324,841

2,872

328,884

Total ⁽¹⁾

4,425

1,132

153

5,710

3,295,059

15,017

27,719

3,343,505

% of Total Loans

0.13

0.03

0.01

0.17

98.55

0.45

0.83

100

⁽¹⁾	The balances of above include $129.9 million of acquired nonimpaired loans.


							Greater Than			Total Past
	30–59 Days			60–89 Days			90 Days			Due			Accruing			Acquired
December 31, 2014	Past Due and			Past Due and			Past Due and			And Still			Current			Impaired			Nonaccrual			Total
(In Thousands)	Still Accruing			Still Accruing			Still Accruing			Accruing			Balances			Loans			Loans			Loans
Commercial	$	715		$	—		$	—		$	715		$	913,382		$	3,269		$	2,706		$	920,072
Owner-occupied commercial		393			—			—			393			783,466			2,264			2,475			788,598
Commercial mortgages		203			—			—			203			791,035			5,976			8,245			805,459
Construction		—			—			—			—			138,634			3,863			—			142,497
Residential		3,879			604			—			4,483			206,266			512			7,068			218,329
Consumer		1,241			342			4			1,587			322,390			9			3,557			327,543

Total ⁽¹⁾	$	6,431		$	946		$	4		$	7,381		$	3,155,173		$	15,893		$	24,051		$	3,202,498

% of Total Loans		0.20	%		0.03	%		0.00	%		0.23	%		98.52	%		0.50	%		0.75	%		100	%

⁽¹⁾	The balances of above include $107.3 million of acquired nonimpaired loans

Analysis of Impaired Loans

The following tables provide an analysis of our impaired loans at June 30, 2015 and December 31, 2014:


	Ending		Loans with		Loans with				Contractual		Average
June 30, 2015	Loan		No Related		Related		Related		Principal		Loan
(In Thousands)	Balances		Reserve ⁽¹⁾		Reserve		Reserve		Balances		Balances
Commercial	$	10,590	$	1,188	$	9,402	$	5,234	$	13,089	$	8,494
Owner-occupied commercial		2,313		1,314		999		103		3,251		2,931
Commercial mortgages		9,221		3,946		5,275		465		12,867		9,479
Construction		1,492		—		1,492		215		1,520		1,150
Residential		15,484		8,407		7,077		1,180		17,815		16,090
Consumer		6,057		4,838		1,219		190		6,648		6,155

Total ⁽²⁾	$	45,157	$	19,693	$	25,464	$	7,387	$	55,190	$	44,299


	Ending		Loans with		Loans with				Contractual		Average
December 31, 2014	Loan		No Related		Related		Related		Principal		Loan
(In Thousands)	Balances		Reserve ⁽¹⁾		Reserve		Reserve		Balances		Balances
Commercial	$	12,381	$	580	$	11,801	$	3,034	$	20,924	$	5,952
Owner-occupied commercial		2,474		1,865		609		609		3,708		4,461
Commercial mortgages		8,335		4,732		3,603		319		14,383		11,005
Construction		1,419		—		1,419		334		1,419		1,013
Residential		15,666		7,068		8,598		790		18,967		17,296
Consumer		6,376		3,557		2,819		231		7,162		5,902

Total	$	46,651	$	17,802	$	28,849	$	5,317	$	66,563	$	45,629

⁽¹⁾	Reflects loan balances at or written down to their remaining book balance.

⁽²⁾	The above includes acquired impaired loans totaling $3.8 million in the ending loan balance and $5.2 million in the contractual principal balance.

Schedule of Commercial Credit Exposure

Commercial Credit Exposure


					Owner-Occupied				Commercial								Total
(In Thousands)	Commercial				Commercial				Mortgages				Construction				Commercial⁽¹⁾
																	June 30,					Dec. 31,
	June 30,		Dec. 31		June 30,		Dec. 31		June 30,		Dec. 31		June 30,		Dec. 31		2015					2014
	2015		2014		2015		2014		2015		2014		2015		2014		Amount		%			Amount		%
Risk Rating:
Special mention	$	16,078	$	4,744	$	18,713	$	6,989	$	10,302	$	9,065	$	—	$	—	$	45,093				$	20,798
Substandard:
Accrual		35,061		42,377		15,567		14,436		4,515		9,167		1,205		1,085		56,348					67,065
Nonaccrual		4,742		1,225		1,314		1,865		7,066		7,927		—				13,122					11,017
Doubtful/nonaccrual		4,814		3,034		75		609		177		319		214		334		5,280					4,296

Total Special and Substandard		60,695		51,380		35,669		23,899		22,060		26,478		1,419		1,419		119,843		4	%		103,176		4	%
Acquired impaired		3,159		3,269		2,027		2,264		5,884		5,976		3,479		3,863		14,549		1			15,372		—
Pass		872,911		865,423		755,366		762,435		842,208		773,005		196,947		137,215		2,667,432		95			2,538,078		96

Total	$	936,765	$	920,072	$	793,062	$	788,598	$	870,152	$	805,459	$	201,845	$	142,497	$	2,801,824		100	%	$	2,656,626		100	%

⁽¹⁾	Table includes $107.3 million and $119.8 million of acquired nonimpaired loans as of June 30, 2015 and December 31, 2014, respectively.

Schedule of Residential and Consumer Credit Exposure

Residential and Consumer Credit Exposure


(In Thousands)	Residential				Consumer				Total Residential and Consumer⁽²⁾
	June 30,		Dec. 31		June 30,		Dec. 31		June 30, 2015					Dec. 31, 2014
	2015		2014		2015		2014		Amount		Percent			Amount		Percent
Nonperforming⁽¹⁾	$	15,198	$	15,666	$	6,055	$	6,376	$	21,253		4	%	$	22,042		4	%
Acquired impaired Loans		460		512		8		9		468		—			521		—
Performing		197,139		202,151		322,821		321,158		519,960		96			523,309		96

Total	$	212,797	$	218,329	$	328,884	$	327,543	$	541,681		100	%	$	545,872		100	%

⁽¹⁾	Includes $11.7 million as of June 30, 2015 and $11.4 million as of December 31, 2014 of troubled debt restructured mortgages and home equity installment loans that are performing in accordance with the loans’ modified terms and are accruing interest.

⁽²⁾	Total includes $22.6 million and $26.0 million in acquired nonimpaired loans as of June 30, 2015 and December 31, 2014, respectively.

Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated

The following table presents loans identified as TDRs during the three and six months ended June 30, 2015 and 2014:


	Three		Three		Six		Six
	Months Ended		Months Ended		Months Ended		Months Ended
	June 30,		June 30,		June 30,		June 30,
(In Thousands)	2015		2014		2015		2014
Commercial	$	557	$	121	$	557	$	121
Residential		197		1,565		409		1,844
Consumer		528		152		663		515

Total	$	1,282	$	1,838	$	1,629	$	2,480