Allowance for Loan Losses and Credit Quality Information (Tables)

6 Months Ended

Jun. 30, 2016

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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, 2016:

				Owner- Occupied Commercial			Commercial Mortgages												Complexity Risk (1)
(In Thousands)	Commercial									Construction			Residential			Consumer						Total
Three months ended June 30, 2016
Allowance for loan losses
Beginning balance	$	11,482		$	6,702		$	6,516		$	3,609		$	2,269		$	5,954		$	1,024		$	37,556
Charge-offs		(727	)		(141	)		(61	)		(3	)		(15	)		(818	)		—			(1,765	)
Recoveries		224			13			34			—			57			373			—			701
Provision (credit)		353			133			1,598			(352	)		22			317			(1,024	)		1,047
Provision for acquired loans		70			16			48			54			19			—			—			207
Ending balance	$	11,402		$	6,723		$	8,135		$	3,308		$	2,352		$	5,826		$	—		$	37,746
Six months ended June 30, 2016
Allowance for loan losses
Beginning balance	$	11,156		$	6,670		$	6,487		$	3,521		$	2,281		$	5,964		$	1,010		$	37,089
Charge-offs		(906	)		(141	)		(78	)		(29	)		(29	)		(1,449	)		—			(2,632	)
Recoveries		334			51			113			46			79			632			—			1,255
Provision (credit)		837			127			1,561			(280	)		2			717			(1,010	)	$	1,954
Provision for acquired loans		(19	)		16			52			50			19			(38	)		—			80
Ending balance	$	11,402		$	6,723		$	8,135		$	3,308		$	2,352		$	5,826		$	—		$	37,746
Period-end allowance allocated to:
Loans individually evaluated for impairment	$	426		$	—		$	—		$	211		$	992		$	205		$	—		$	1,834
Loans collectively evaluated for impairment		10,923			6,686			8,009			3,038			1,340			5,621			—			35,617
Acquired loans evaluated for impairment		53			37			126			59			20			—			—			295
Ending balance	$	11,402		$	6,723		$	8,135		$	3,308		$	2,352		$	5,826		$	—		$	37,746
Period-end loan balances evaluated for:
Loans individually evaluated for impairment	$	2,558		$	838		$	1,702		$	1,419		$	14,416		$	7,965		$	—		$	28,898	(2)
Loans collectively evaluated for impairment		1,045,918			857,270			869,771			181,440			153,811			352,675			—			3,460,885
Acquired nonimpaired loans		58,423			70,465			108,212			12,086			67,484			13,990			—			330,660
Acquired impaired loans		1,711			9,757			10,560			4,094			946			4			—			27,072
Ending balance	$	1,108,610		$	938,330		$	990,245		$	199,039		$	236,657		$	374,634		$	—		$	3,847,515	(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, 2015:

				Owner Occupied Commercial			Commercial Mortgages											Complexity Risk(1)
(In Thousands)	Commercial									Construction		Residential			Consumer						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)

⁽¹⁾  Represents the portion of the allowance for loan losses established to capture factors not already included in other components in our allowance for loan losses methodology.

⁽²⁾  The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $14.1 million and $13.6 million for the periods ending June 30, 2016 and 2015, 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:

June 30, 2016 (In Thousands)	30–59 Days Past Due and Still Accruing			60–89 Days Past Due and Still Accruing			Greater Than 90 Days Past Due and Still Accruing			Total Past Due And Still Accruing			Accruing Current Balances			Acquired Impaired Loans			Nonaccrual Loans			Total Loans
Commercial	$	720		$	132		$	85		$	937		$	1,103,908		$	1,711		$	2,054		$	1,108,610
Owner-occupied commercial		—			—			—			—			927,735			9,757			838			938,330
Commercial mortgages		2,424			5,643			—			8,067			969,996			10,560			1,622			990,245
Construction		—			—			—			—			194,945			4,094			—			199,039
Residential		4,598			533			416			5,547			224,341			946			5,823			236,657
Consumer		734			224			219			1,177			369,209			4			4,244			374,634
Total (1)	$	8,476		$	6,532		$	720		$	15,728		$	3,790,134		$	27,072		$	14,581		$	3,847,515
% of Total Loans		0.22	%		0.17	%		0.02	%		0.41	%		98.51	%		0.70	%		0.38	%		100	%

(1) The balances of above include $330.7 million of acquired nonimpaired loans.

December 31, 2015 (In Thousands)	30–59 Days Past Due and Still Accruing			60–89 Days Past Due and Still Accruing			Greater Than 90 Days Past Due and Still Accruing			Total Past Due And Still Accruing			Accruing Current Balances			Acquired Impaired Loans			Nonaccrual Loans			Total Loans
Commercial	$	1,686		$	270		$	12,355		$	14,311		$	1,028,973		$	12,985		$	5,328		$	1,061,597
Owner-occupied commercial		713			217			4,886			5,816			869,048			4,688			1,091			880,643
Commercial mortgages		141			4			288			433			952,426			10,513			3,326			966,698
Construction		—			—			—			—			242,229			3,544			—			245,773
Residential		5,263			621			251			6,135			245,307			950			7,287			259,679
Consumer		1,222			36			252			1,510			354,599			7			4,133			360,249
Total (1)	$	9,025		$	1,148		$	18,032		$	28,205		$	3,692,582		$	32,687		$	21,165		$	3,774,639
% of Total Loans		0.24	%		0.03	%		0.48	%		0.75	%		97.83	%		0.86	%		0.56	%		100	%

(1) The balances of above include $371.1 million of acquired nonimpaired loans.

Analysis of Impaired Loans

The following tables provide an analysis of our impaired loans at June 30, 2016 and December 31, 2015:

June 30, 2016 (In Thousands)	Ending Loan Balances		Loans with No Related Reserve (1)		Loans with Related Reserve		Related Reserve		Contractual Principal Balances		Average Loan Balances
Commercial	$	3,765	$	1,565	$	2,200	$	479	$	4,567	$	6,472
Owner-occupied commercial		3,483		486		2,997		37		3,833		2,459
Commercial mortgages		3,765		1,703		2,062		126		6,271		5,903
Construction		2,856		—		2,856		270		2,979		1,736
Residential		15,254		7,823		7,431		1,012		17,768		15,316
Consumer		7,965		6,785		1,180		205		9,714		7,446
Total (2)	$	37,088	$	18,362	$	18,726	$	2,129	$	45,132	$	39,332

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

⁽²⁾  The above includes acquired impaired loans totaling $8.2 million in the ending loan balance and $9.4 million in the contractual principal balance.

December 31, 2015 (In Thousands)	Ending Loan Balances		Loans with No Related Reserve (1)		Loans with Related Reserve		Related Reserve		Contractual Principal Balances		Average Loan Balances
Commercial	$	6,137	$	951	$	5,186	$	1,168	$	20,206	$	9,391
Owner-occupied commercial		2,127		1,090		1,037		22		2,947		2,111
Commercial mortgages		4,652		3,410		1,242		103		11,826		7,540
Construction		1,419		—		1,419		211		1,419		1,448
Residential		15,710		9,034		6,676		920		18,655		15,264
Consumer		7,665		6,498		1,167		200		9,353		6,801
Total (2)	$	37,710	$	20,983	$	16,727	$	2,624	$	64,406	$	42,555

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

⁽²⁾  The above includes acquired impaired loans totaling $2.9 million in the ending loan balance and $3.5 million in the contractual principal balance.

Schedule of Commercial Credit Exposure

The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the Allowance for Loan Loss.

Commercial Credit Exposure

					Owner-Occupied				Commercial								Total
(In Thousands)	Commercial				Commercial				Mortgages				Construction				Commercial(1)
	June 30, 2016		Dec. 31 2015		June 30, 2016		Dec. 31 2015		June 30, 2016		Dec. 31 2015		June 30, 2016		Dec. 31 2015		June 30, 2016					Dec. 31, 2015
																	Amount		%			Amount		%
Risk Rating:
Special mention	$	4,379	$	5,620	$	6,427	$	9,535	$	21,185	$	12,323	$	—	$	—	$	31,991				$	27,478
Substandard:
Accrual		40,140		33,883		23,351		22,901		9,868		2,547		—		8,296		73,359					67,627
Nonaccrual		1,627		4,164		838		1,090		1,622		3,326		—		—		4,087					8,580
Doubtful		427		1,164		—		—		—		—		—		—		427					1,164
Total Special and Substandard		46,573		44,831		30,616		33,526		32,675		18,196		—		8,296		109,864		3	%		104,849		3	%
Acquired impaired		1,711		12,985		9,757		4,688		10,560		10,513		4,094		3,544		26,122		1			31,730		1
Pass		1,060,326		1,003,781		897,957		842,429		947,010		937,989		194,945		233,933		3,100,238		96			3,018,132		96
Total	$	1,108,610	$	1,061,597	$	938,330	$	880,643	$	990,245	$	966,698	$	199,039	$	245,773	$	3,236,224		100	%	$	3,154,711		100	%

⁽¹⁾  Table includes $249.2 million and $277.0 million of acquired nonimpaired loans as of June 30, 2016 and December 31, 2015, respectively.

Schedule of Consumer Credit Exposure

Residential and Consumer Credit Exposure

(In Thousands)	Residential				Consumer				Total Residential and Consumer(2)
	June 30, 2016		Dec. 31 2015		June 30, 2016		Dec. 31 2015		30-Jun-16					Dec. 31, 2015
									Amount		Percent			Amount		Percent
Nonperforming(1)	$	14,416	$	15,548	$	7,965	$	7,664	$	22,381		4	%	$	23,212		4	%
Acquired impaired loans		946		950		4		7		950		—			957		—
Performing		221,295		243,181		366,665		352,578		587,960		96			595,759		96
Total	$	236,657	$	259,679	$	374,634	$	360,249	$	611,291		100	%	$	619,928		100	%

⁽¹⁾  Includes $14.1 million as of June 30, 2016 and $13.6 million as of December 31, 2015 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 $81.5 million and $94.2 million in acquired nonimpaired loans as of June 30, 2016 and December 31, 2015, 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, 2016 and 2015.

(In Thousands)	Three Months Ended June 30, 2016		Three Months Ended June 30, 2015		Six Months Ended June 30, 2016		Six Months Ended June 30, 2015
Commercial	$	141	$	557	$	1,125	$	557
Owner Occupied Commercial		—		—		—		—
Commercial mortgages		—		—		—		—
Construction		—		—		—		—
Residential		112		197		726		409
Consumer		240		528		455		663
Total	$	493	$	1,282	$	2,306	$	1,629