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

3 Months Ended

Mar. 31, 2019

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

Portfolio	Class
Commercial Loans	Commercial and Industrial
	Commercial Real Estate
	Business Banking
Consumer Loans	Dealer Finance
	Specialty Lending
	Direct
Residential Real Estate

Allowance for Loan Losses by Portfolio

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 December 31, 2018	$	32,759		$	37,178		$	2,568		$	72,505
Charge-offs		(747	)		(7,433	)		(274	)		(8,454	)
Recoveries		94			1,399			54			1,547
Provision		53			5,660			94			5,807
Ending Balance as of March 31, 2019	$	32,159		$	36,804		$	2,442		$	71,405

Balance as of December 31, 2017	$	27,606		$	36,830		$	5,064		$	69,500
Charge-offs		(805	)		(7,687	)		(182	)		(8,674	)
Recoveries		187			1,644			47			1,878
Provision		1,202			6,186			108			7,496
Ending Balance as of March 31, 2018	$	28,190		$	36,973		$	5,037		$	70,200

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 March 31, 2019
Allowance for loan losses	$	32,159	$	36,804	$	2,442	$	71,405
Allowance for loans individually evaluated for impairment		25		-		-		25
Allowance for loans collectively evaluated for impairment	$	32,134	$	36,804	$	2,442	$	71,380
Ending balance of loans	$	3,250,482	$	2,249,419	$	1,390,411	$	6,890,312
Ending balance of originated loans individually evaluated for impairment		6,009		7,813		7,220		21,042
Ending balance of acquired loans collectively evaluated for impairment		140,103		29,626		142,814		312,543
Ending balance of originated loans collectively evaluated for impairment	$	3,104,370	$	2,211,980	$	1,240,377	$	6,556,727

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 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 March 31, 2019
Originated
Commercial Loans:
C&I	$	74	$	-	$	-	$	74	$	899	$	858,653	$	859,626
CRE		5,794		420		-		6,214		4,818		1,753,079		1,764,111
Business Banking		1,149		235		-		1,384		5,970		479,288		486,642
Total Commercial Loans	$	7,017	$	655	$	-	$	7,672	$	11,687	$	3,091,020	$	3,110,379
Consumer Loans:
Dealer Finance	$	11,388	$	1,962	$	878	$	14,228	$	2,924	$	1,173,956	$	1,191,108
Specialty Lending		3,235		1,733		1,604		6,572		45		522,527		529,144
Direct		2,530		808		393		3,731		2,895		492,915		499,541
Total Consumer Loans	$	17,153	$	4,503	$	2,875	$	24,531	$	5,864	$	2,189,398	$	2,219,793
Residential Real Estate	$	1,573	$	398	$	315	$	2,286	$	6,141	$	1,239,170	$	1,247,597
Total Originated Loans	$	25,743	$	5,556	$	3,190	$	34,489	$	23,692	$	6,519,588	$	6,577,769

Acquired
Commercial Loans:
C&I	$	-	$	-	$	-	$	-	$	-	$	27,166	$	27,166
CRE		-		-		-		-		-		80,623		80,623
Business Banking		121		285		-		406		383		31,525		32,314
Total Commercial Loans	$	121	$	285	$	-	$	406	$	383	$	139,314	$	140,103
Consumer Loans:
Dealer Finance	$	-	$	-	$	-	$	-	$	-	$	3	$	3
Direct		76		2		-		78		219		29,326		29,623
Total Consumer Loans	$	76	$	2	$	-	$	78	$	219	$	29,329	$	29,626
Residential Real Estate	$	788	$	119	$	145	$	1,052	$	1,338	$	140,424	$	142,814
Total Acquired Loans	$	985	$	406	$	145	$	1,536	$	1,940	$	309,067	$	312,543

Total Loans	$	26,728	$	5,962	$	3,335	$	36,025	$	25,632	$	6,828,655	$	6,890,312

(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:
Dealer Finance	$	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:
Dealer Finance	$	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 impaired loans specifically evaluated for impairment:

	March 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	$	244	$	516			$	228	$	497
CRE		4,237		6,272				4,312		6,330
Business Banking		1,299		2,341				1,013		2,001
Total Commercial Loans	$	5,780	$	9,129			$	5,553	$	8,828
Consumer Loans:
Dealer Finance	$	187	$	283			$	143	$	241
Direct		7,626		9,763				7,744		9,831
Total Consumer Loans	$	7,813	$	10,046			$	7,887	$	10,072
Residential Real Estate	$	7,220	$	9,839			$	6,905	$	9,414
Total	$	20,813	$	29,014			$	20,345	$	28,314

With an allowance recorded:
Commercial Loans:
C&I	$	229	$	236	$	25	$	233	$	238	$	25
Total Commercial Loans	$	229	$	236	$	25	$	233	$	238	$	25

Total Loans	$	21,042	$	29,250	$	25	$	20,578	$	28,552	$	25

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

	For the three months ended
	March 31, 2019				March 31, 2018
(In thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Originated
Commercial Loans:
C&I	$	462	$	1	$	467	$	-
CRE		4,282		30		4,506		32
Business Banking		1,263		6		954		5
Total Commercial Loans	$	6,007	$	37	$	5,927	$	37
Consumer Loans:
Dealer Finance	$	173	$	2	$	184	$	3
Direct		7,716		98		8,190		109
Total Consumer Loans	$	7,889	$	100	$	8,374	$	112
Residential Real Estate	$	7,166	$	77	$	6,881	$	73
Total Originated	$	21,062	$	214	$	21,182	$	222

Total Loans	$	21,062	$	214	$	21,182	$	222

Financing Receivable Credit Quality by Loan Class

The following tables illustrate the Company’s credit quality by loan class:

(In thousands)	March 31, 2019
Originated
Commercial Credit Exposure
By Internally Assigned Grade:			C&I		CRE		Total
Pass			$	806,097	$	1,704,986	$	2,511,083
Special Mention				13,217		14,172		27,389
Substandard				40,312		44,953		85,265
Total			$	859,626	$	1,764,111	$	2,623,737

Business Banking Credit Exposure					Business Banking
By Internally Assigned Grade:					Business Banking		Total
Non-classified					$	473,402	$	473,402
Classified						13,240		13,240
Total					$	486,642	$	486,642

Consumer Credit Exposure	Dealer Finance		Specialty Lending
By Payment Activity:	Dealer Finance		Specialty Lending		Direct		Total
Performing	$	1,187,306	$	527,495	$	496,253	$	2,211,054
Nonperforming		3,802		1,649		3,288		8,739
Total	$	1,191,108	$	529,144	$	499,541	$	2,219,793

Residential Real Estate Credit Exposure					Residential Real Estate
By Payment Activity:					Residential Real Estate		Total
Performing					$	1,241,141	$	1,241,141
Nonperforming						6,456		6,456
Total					$	1,247,597	$	1,247,597

Acquired
Commercial Credit Exposure
By Internally Assigned Grade:	C&I		CRE		Total
Pass	$	24,488	$	76,934	$	101,422
Special Mention		2,670		3,074		5,744
Substandard		8		615		623
Total	$	27,166	$	80,623	$	107,789

Business Banking Credit Exposure			Business Banking
By Internally Assigned Grade:			Business Banking		Total
Non-classified			$	29,295	$	29,295
Classified				3,019		3,019
Total			$	32,314	$	32,314

Consumer Credit Exposure	Dealer Finance
By Payment Activity:	Dealer Finance		Direct		Total
Performing	$	3	$	29,404	$	29,407
Nonperforming		-		219		219
Total	$	3	$	29,623	$	29,626

Residential Real Estate Credit Exposure			Residential Real Estate
By Payment Activity:			Residential Real Estate		Total
Performing			$	141,331	$	141,331
Nonperforming				1,483		1,483
Total			$	142,814	$	142,814

(In thousands)	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 Banking
By Internally Assigned Grade:					Business Banking		Total
Non-classified					$	476,052	$	476,052
Classified						13,219		13,219
Total					$	489,271	$	489,271

Consumer Credit Exposure	Dealer Finance		Specialty Lending
By Payment Activity:	Dealer Finance		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 Real Estate
By Payment Activity:					Residential 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 Banking
By Internally Assigned Grade:			Business Banking		Total
Non-classified			$	29,945	$	29,945
Classified				3,129		3,129
Total			$	33,074	$	33,074

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

Residential Real Estate Credit Exposure			Residential Real Estate
By Payment Activity:			Residential 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 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 March 31, 2019						Three months ended March 31, 2018
(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		3		319		410
Total Commercial Loans		3	$	453	$	453		3	$	319	$	410
Consumer Loans:
Dealer Finance		5	$	74	$	74		6	$	82	$	81
Direct		6		320		320		2		41		41
Total Consumer Loans		11	$	394	$	394		8	$	123	$	122
Residential Real Estate		6	$	388	$	405		5	$	323	$	323
Total Troubled Debt Restructurings		20	$	1,235	$	1,252		16	$	765	$	855

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 March 31, 2019				Three months ended March 31, 2018
(Dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Commercial Loans:
Business Banking		-	$	-		1	$	200
Total Commercial Loans		-	$	-		1	$	200
Consumer Loans:
Dealer Finance		2	$	17		-	$	-
Direct		10		600		14		870
Total Consumer Loans		12	$	617		14	$	870
Residential Real Estate		8	$	398		8	$	504
Total Troubled Debt Restructurings		20	$	1,015		23	$	1,574