Loans, Allowance for Loan Losses and Credit Quality (Tables)

9 Months Ended

Sep. 30, 2016

Loans, Allowance for Loan Losses and Credit Quality [Abstract]

Tabular disclosure of financing receivables bifurcated by type of impairment evaluation [Table Text Block]

The following tables bifurcate the amount of loans and the allowance allocated to each loan category based on the type of impairment analysis as of the periods indicated:



	September 30, 2016
	(Dollars in thousands)
	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Residential Real Estate		Home Equity		Other Consumer		Total
Financing receivables ending balance:
Collectively evaluated for impairment	$	853,245	$	2,759,158	$	376,245	$	114,085	$	609,854	$	958,999	$	11,244	$	5,682,830
Individually evaluated for impairment	$	4,468	$	18,077	$	—	$	969	$	14,193	$	5,904	$	418	$	44,029
Purchased credit impaired loans	$	—	$	10,425	$	—	$	—	$	8,638	$	209	$	2	$	19,274
Total loans by group	$	857,713	$	2,787,660	$	376,245	$	115,054	$	632,685	$	965,112	$	11,664	$	5,746,133	(1	)



	December 31, 2015
	(Dollars in thousands)
	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Residential Real Estate		Home Equity		Other Consumer		Total
Financing receivables ending balance:
Collectively evaluated for impairment	$	838,129	$	2,619,294	$	373,064	$	95,225	$	614,014	$	921,563	$	14,427	$	5,475,716
Individually evaluated for impairment	$	5,147	$	22,986	$	304	$	1,021	$	15,405	$	5,989	$	558	$	51,410
Purchased credit impaired loans	$	—	$	11,154	$	—	$	—	$	9,187	$	251	$	3	$	20,595
Total loans by group	$	843,276	$	2,653,434	$	373,368	$	96,246	$	638,606	$	927,803	$	14,988	$	5,547,721	(1	)


(1)	The amount of net deferred fees on loans and net unamortized discounts on acquired loans not deemed to be purchased credit impaired ("PCI") included in the ending balance was $10.9 million at both September 30, 2016 and December 31, 2015 respectively.

Summary of changes in allowance for loan losses

The following tables summarize changes in allowance for loan losses by loan category for the periods indicated:



	Three Months Ended September 30, 2016
	(Dollars in thousands)
	Commercial and Industrial			Commercial Real Estate			Commercial Construction		Small Business			Residential Real Estate			Home Equity			Other Consumer			Total
Allowance for loan losses
Beginning balance	$	14,027		$	29,011		$	5,216	$	1,441		$	2,578		$	4,986		$	468		$	57,727
Charge-offs	(27		)	(341		)	—		(98		)	—			(154		)	(523		)	(1,143		)
Recoveries	63			124			—		28			130			24			302			671
Provision (benefit)	(189		)	609			117		113			(44		)	196			148			950
Ending balance	$	13,874		$	29,403		$	5,333	$	1,484		$	2,664		$	5,052		$	395		$	58,205



	Three Months Ended September 30, 2015
	(Dollars in thousands)
	Commercial and Industrial			Commercial Real Estate			Commercial Construction		Small Business			Residential Real Estate			Home Equity			Other Consumer			Total
Allowance for loan losses
Beginning balance	$	15,279		$	26,359		$	4,071	$	1,248		$	2,551		$	4,871		$	616		$	54,995
Charge-offs	(497		)	(28		)	—		(2		)	(40		)	(249		)	(349		)	(1,165		)
Recoveries	22			152			—		57			6			130			208			575
Provision (benefit)	(518		)	582			422		(20		)	75			128			131			800
Ending balance	$	14,286		$	27,065		$	4,493	$	1,283		$	2,592		$	4,880		$	606		$	55,205



	Nine Months Ended September 30, 2016
	(Dollars in thousands)
	Commercial and Industrial			Commercial Real Estate			Commercial Construction			Small Business			Residential Real Estate			Home Equity			Other Consumer			Total
Allowance for loan losses
Beginning balance	$	13,802		$	27,327		$	5,366		$	1,264		$	2,590		$	4,889		$	587		$	55,825
Charge-offs	(31		)	(365		)	—			(191		)	(27		)	(491		)	(1,152		)	(2,257		)
Recoveries	850			535			—			122			182			77			796			2,562
Provision (benefit)	(747		)	1,906			(33		)	289			(81		)	577			164			2,075
Ending balance	$	13,874		$	29,403		$	5,333		$	1,484		$	2,664		$	5,052		$	395		$	58,205
Ending balance: individually evaluated for impairment	$	134		$	355		$	—		$	2		$	1,156		$	223		$	23		$	1,893
Ending balance: collectively evaluated for impairment	$	13,740		$	29,048		$	5,333		$	1,482		$	1,508		$	4,829		$	372		$	56,312
	Nine Months Ended September 30, 2015
	(Dollars in thousands)
	Commercial and Industrial			Commercial Real Estate			Commercial Construction			Small Business			Residential Real Estate			Home Equity			Other Consumer			Total
Allowance for loan losses
Beginning balance	$	15,573		$	25,873		$	3,945		$	1,171		$	2,834		$	4,956		$	748		$	55,100
Charge-offs	(1,531		)	(236		)	—			(198		)	(242		)	(659		)	(922		)	(3,788		)
Recoveries	903			1,006			—			189			52			234			509			2,893
Provision (benefit)	(659		)	422			548			121			(52		)	349			271			1,000
Ending balance	$	14,286		$	27,065		$	4,493		$	1,283		$	2,592		$	4,880		$	606		$	55,205
Ending balance: individually evaluated for impairment	$	252		$	225		$	—		$	28		$	1,313		$	245		$	27		$	2,090
Ending balance: collectively evaluated for impairment	$	14,034		$	26,840		$	4,493		$	1,255		$	1,279		$	4,635		$	579		$	53,115

Internal risk-rating categories for the Company's commercial portfolio

The following table details the amount of outstanding principal balances relative to each of the risk-rating categories for the Company’s commercial portfolio:



		September 30, 2016
Category	Risk Rating	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Total
		(Dollars in thousands)
Pass	1 - 6	$	746,616	$	2,648,658	$	370,149	$	112,442	$	3,877,865
Potential weakness	7	83,166		86,408		4,516		1,965		176,055
Definite weakness-loss unlikely	8	27,909		50,162		1,580		619		80,270
Partial loss probable	9	22		2,432		—		28		2,482
Definite loss	10	—		—		—		—		—
Total		$	857,713	$	2,787,660	$	376,245	$	115,054	$	4,136,672



		December 31, 2015
Category	Risk Rating	Commercial and Industrial		Commercial Real Estate		Commercial Construction		Small Business		Total
		(Dollars in thousands)
Pass	1 - 6	$	765,753	$	2,484,025	$	363,781	$	93,008	$	3,706,567
Potential weakness	7	54,375		112,022		7,678		2,444		176,519
Definite weakness-loss unlikely	8	23,073		56,276		1,909		732		81,990
Partial loss probable	9	75		1,111		—		62		1,248
Definite loss	10	—		—		—		—		—
Total		$	843,276	$	2,653,434	$	373,368	$	96,246	$	3,966,324

Weighted average FICO scores and the weighted average combined LTV ratio

The following table shows the weighted average FICO scores and the weighted average combined LTV ratios as of the periods indicated below:



	September 30, 2016		December 31, 2015
Residential portfolio
FICO score (re-scored)(1)	743		742
LTV (re-valued)(2)	62.7	%	61.4	%
Home equity portfolio
FICO score (re-scored)(1)	767		765
LTV (re-valued)(2)	56.2	%	55.8	%


(1)	The average FICO scores for September 30, 2016 are based upon rescores available from August 31, 2016 and origination score data for loans booked between September 1, 2016 and September 30, 2016. The average FICO scores for December 31, 2015 are based upon rescores available from November 30, 2015 and origination score data for loans booked between December 1, 2015 and December 31, 2015.

(2)

The combined LTV ratios for September 30, 2016 are based upon updated automated valuations as of March 31, 2015 and origination value data for loans booked between April 1, 2015 and September 30, 2016. The combined LTV ratios for December 31, 2015 are based upon updated automated valuations as of March 31, 2015 and actual score data for loans booked from April 1, 2015 through December 31, 2015. For home equity loans and lines in a subordinate lien position, the LTV data represents a combined LTV, taking into account the senior lien data for loans and lines.

Summary of nonaccrual loans

The following table shows information regarding nonaccrual loans at the dates indicated:



	September 30, 2016		December 31, 2015
	(Dollars in thousands)
Commercial and industrial	$	3,065	$	3,699
Commercial real estate	7,399		7,856
Commercial construction	—		304
Small business	288		239
Residential real estate	7,684		8,795
Home equity	6,311		6,742
Other consumer	44		55
Total nonaccrual loans(1)	$	24,791	$	27,690


(1)	Included in these amounts were $5.9 million and $5.2 million of nonaccruing TDRs at September 30, 2016 and December 31, 2015, respectively.

Foreclosed Residential Real Estate Property [Table Text Block]

The following table shows information regarding foreclosed residential real estate property at the dates indicated:



	September 30, 2016		December 31, 2015
	(Dollars in thousands)
Foreclosed residential real estate property held by the creditor	$	1,384	$	1,430
Recorded investment in mortgage loans collateralized by residential real estate property that are in the process of foreclosure	$	1,557	$	1,059

Age analysis of past due financing receivables

The following table shows the age analysis of past due financing receivables as of the dates indicated:



	September 30, 2016
	30-59 days			60-89 days			90 days or more			Total Past Due					Total Financing Receivables		Recorded Investment >90 Days and Accruing
	Number of Loans	Principal Balance		Number of Loans	Principal Balance		Number of Loans	Principal Balance		Number of Loans	Principal Balance		Current		Total Financing Receivables		Recorded Investment >90 Days and Accruing
	(Dollars in thousands)
Loan Portfolio
Commercial and industrial	5	$	436	2	$	205	6	$	2,584	13	$	3,225	$	854,488	$	857,713	$	—
Commercial real estate	6	3,396		9	2,200		8	3,772		23	9,368		2,778,292		2,787,660		—
Commercial construction	—	—		—	—		—	—		—	—		376,245		376,245		—
Small business	16	218		5	90		18	203		39	511		114,543		115,054		—
Residential real estate	13	2,621		11	1,692		27	4,222		51	8,535		624,150		632,685		—
Home equity	14	1,199		11	611		30	1,794		55	3,604		961,508		965,112		—
Other consumer (1)	250	230		19	32		15	11		284	273		11,391		11,664		2
Total	304	$	8,100	57	$	4,830	104	$	12,586	465	$	25,516	$	5,720,617	$	5,746,133	$	2



	December 31, 2015
	30-59 days			60-89 days			90 days or more			Total Past Due					Total Financing Receivables		Recorded Investment >90 Days and Accruing
	Number of Loans	Principal Balance		Number of Loans	Principal Balance		Number of Loans	Principal Balance		Number of Loans	Principal Balance		Current		Total Financing Receivables		Recorded Investment >90 Days and Accruing
	(Dollars in thousands)
Loan Portfolio
Commercial and industrial	9	$	399	4	$	1,021	8	$	3,039	21	$	4,459	$	838,817	$	843,276	$	—
Commercial real estate	19	7,349		6	1,627		13	4,458		38	13,434		2,640,000		2,653,434		—
Commercial construction	—	—		—	—		1	304		1	304		373,064		373,368		—
Small business	11	93		4	9		13	69		28	171		96,075		96,246		—
Residential real estate	20	3,119		11	2,049		19	3,433		50	8,601		630,005		638,606		—
Home equity	21	1,526		11	903		20	1,338		52	3,767		924,036		927,803		—
Other consumer (1)	297	231		12	65		13	25		322	321		14,667		14,988		—
Total	377	$	12,717	48	$	5,674	87	$	12,666	512	$	31,057	$	5,516,664	$	5,547,721	$	—

(1) Other consumer portfolio is inclusive of deposit account overdrafts recorded as loan balances.

Summary of Troubled Debt Restructuring and other pertinent information

The following table shows the Company’s total TDRs and other pertinent information as of the dates indicated:



	September 30, 2016		December 31, 2015
	(Dollars in thousands)
TDRs on accrual status	$	27,644	$	32,849
TDRs on nonaccrual	5,910		5,225
Total TDRs	$	33,554	$	38,074
Amount of specific reserves included in the allowance for loan losses associated with TDRs	$	1,515	$	1,628
Additional commitments to lend to a borrower who has been a party to a TDR	$	1,097	$	972

Change in investment recorded subsequent to modifications

The following table shows the modifications which occurred during the periods indicated and the change in the recorded investment subsequent to the modifications occurring:



	Three Months Ended					Nine Months Ended
	September 30, 2016					September 30, 2016
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment (1)		Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment (1)
	(Dollars in thousands)
Troubled debt restructurings
Commercial and industrial	—	$	—	$	—	7	$	528	$	528
Commercial real estate	3	986		986		9	2,329		2,329
Small business	1	59		59		3	168		168
Residential real estate	—	—		—		5	1,167		1,209
Home equity	4	328		328		8	632		632
Other consumer	—	—		—		5	107		107
Total	8	$	1,373	$	1,373	37	$	4,931	$	4,973



	Three Months Ended					Nine Months Ended
	September 30, 2015					September 30, 2015
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment (1)		Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment (1)
	(Dollars in thousands)
Troubled debt restructurings
Commercial and industrial	1	$	100	$	100	10	$	1,153	$	1,153
Commercial real estate	1	653		653		6	2,963		2,963
Small business	2	103		103		7	269		269
Residential real estate	2	218		245		5	376		403
Home equity	1	36		36		4	251		251
Total	7	$	1,110	$	1,137	32	$	5,012	$	5,039


(1)	The post-modification balances represent the legal principal balance of the loan on the date of modification. These amounts may show an increase when modifications include a capitalization of interest.

Post modification balance of Troubled Debt Restructuring

The following table shows the Company’s post-modification balance of TDRs listed by type of modification as of the periods indicated:



	Three Months Ended September 30				Nine Months Ended September 30
	2016		2015		2016		2015
	(Dollars in thousands)				(Dollars in thousands)
Extended maturity	$	256	$	855	$	2,638	$	2,204
Adjusted interest rate	—		—		92		—
Combination rate and maturity	730		246		990		2,769
Court ordered concession	387		36		1,253		66
Total	$	1,373	$	1,137	$	4,973	$	5,039

Troubled Debt Restructurings that subsequently defaulted

The following table shows loans that have been modified during the past twelve months which have subsequently defaulted during the periods indicated:



	Three Months Ended September 30
	2016			2015
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(Dollars in thousands)
Troubled debt restructurings that subsequently defaulted
Home equity	1	$	141	—	$	—
	1	$	141	—	$	—

	Nine Months Ended September 30
	2016			2015
	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	(Dollars in thousands)
Troubled debt restructurings that subsequently defaulted
Commercial real estate	—	$	—	2	$	880
Commercial and industrial	—	—		3	339
Home equity	1	$	141	—	$	—
	1	$	141	5	$	1,219

Impaired loans by loan portfolio

The tables below set forth information regarding the Company’s impaired loans by loan portfolio at the dates indicated:



	September 30, 2016
	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Dollars in thousands)
With no related allowance recorded
Commercial and industrial	$	2,382	$	2,750	$	—
Commercial real estate	11,481		12,567		—
Small business	612		703		—
Residential real estate	4,226		4,399		—
Home equity	4,611		4,733		—
Other consumer	158		159		—
Subtotal	23,470		25,311		—
With an allowance recorded
Commercial and industrial	$	2,086	$	2,252	$	134
Commercial real estate	6,596		7,023		355
Small business	357		369		2
Residential real estate	9,967		10,968		1,156
Home equity	1,293		1,459		223
Other consumer	260		261		23
Subtotal	20,559		22,332		1,893
Total	$	44,029	$	47,643	$	1,893



	December 31, 2015
	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(Dollars in thousands)
With no related allowance recorded
Commercial and industrial	$	2,613	$	3,002	$	—
Commercial real estate	12,008		13,128		—
Commercial construction	304		305		—
Small business	527		618		—
Residential real estate	3,874		4,033		—
Home equity	4,893		5,005		—
Other consumer	184		185		—
Subtotal	24,403		26,276		—
With an allowance recorded
Commercial and industrial	$	2,534	$	2,648	$	183
Commercial real estate	10,978		11,047		204
Small business	494		523		4
Residential real estate	11,531		12,652		1,278
Home equity	1,096		1,287		238
Other consumer	374		389		23
Subtotal	27,007		28,546		1,930
Total	$	51,410	$	54,822	$	1,930

Interest income recognized on impaired loans

The following tables set forth information regarding interest income recognized on impaired loans, by portfolio, for the periods indicated:



	Three Months Ended				Nine Months Ended
	September 30, 2016				September 30, 2016
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
With no related allowance recorded
Commercial and industrial	$	2,444	$	16	$	2,584	$	48
Commercial real estate	11,549		115		11,775		348
Small business	646		5		679		18
Residential real estate	4,255		42		4,286		134
Home equity	4,616		45		4,677		138
Other consumer	162		3		168		9
Subtotal	23,672		226		24,169		695
With an allowance recorded
Commercial and industrial	$	2,097	$	4	$	2,135	$	13
Commercial real estate	6,854		42		6,977		126
Small business	367		6		384		17
Residential real estate	10,004		92		10,071		272
Home equity	1,299		13		1,310		36
Other consumer	265		2		272		6
Subtotal	20,886		159		21,149		470
Total	$	44,558	$	385	$	45,318	$	1,165



	Three Months Ended				Nine Months Ended
	September 30, 2015				September 30, 2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
With no related allowance recorded
Commercial and industrial	$	2,080	$	11	$	2,204	$	41
Commercial real estate	13,876		89		14,433		337
Commercial construction	307		—		309		—
Small business	465		4		484		14
Residential real estate	3,566		42		3,601		123
Home equity	4,585		44		4,670		134
Other consumer	198		4		207		12
Subtotal	25,077		194		25,908		661
With an allowance recorded
Commercial and industrial	$	3,687	$	10	$	3,894	$	57
Commercial real estate	15,830		204		15,993		609
Small business	540		7		564		22
Residential real estate	11,698		106		11,764		358
Home equity	1,221		4		1,238		13
Other consumer	421		4		443		11
Subtotal	33,397		335		33,896		1,070
Total	$	58,474	$	529	$	59,804	$	1,731

Certain Loans Acquired In Transfer Accounted For As Debt Securities Acquired During Period

The following table displays certain information pertaining to PCI loans at the dates indicated:



	September 30, 2016		December 31, 2015
	(Dollars in thousands)
Outstanding balance	$	21,481	$	23,199
Carrying amount	$	19,274	$	20,595

Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule

The following table summarizes activity in the accretable yield for the PCI loan portfolio:



	Three Months Ended September 30						Nine Months Ended September 30
	2016			2015			2016			2015
	(Dollars in thousands)
Beginning balance	$	2,625		$	2,527		$	2,827		$	2,974
Acquisition	—			—			—			319
Accretion	(359		)	(592		)	(1,188		)	(2,138		)
Other change in expected cash flows (1)	213			278			744			978
Reclassification from nonaccretable difference for loans which have paid off (2)	—			218			96			298
Ending balance	$	2,479		$	2,431		$	2,479		$	2,431

(1) Represents changes in cash flows expected to be collected and resulting in increased interest income as a prospective yield adjustment over the remaining life of the loan(s).

(2) Results in increased interest income during the period in which the loan paid off at amount greater than originally expected.