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

9 Months Ended

Sep. 30, 2020

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

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 June 30, 2020	$	50,386		$	40,094		$	23,020		$	113,500
Charge-offs		(624	)		(4,097	)		(58	)		(4,779	)
Recoveries		333			2,123			62			2,518
Provision		1,651			442			1,168			3,261
Ending Balance as of September 30, 2020	$	51,746		$	38,562		$	24,192		$	114,500

(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		(2,353	)		(17,166	)		(863	)		(20,382	)
Recoveries		674			6,168			300			7,142
Provision		26,269			17,438			8,034			51,741
Ending Balance as of September 30, 2020	$	51,746		$	38,562		$	24,192		$	114,500

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 June 30, 2019	$	33,152		$	36,534		$	2,479		$	72,165
Charge-offs		(865	)		(6,976	)		(174	)		(8,015	)
Recoveries		132			1,746			13			1,891
Provision		1,021			5,031			272			6,324
Ending Balance as of September 30, 2019	$	33,440		$	36,335		$	2,590		$	72,365

(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		(2,783	)		(21,336	)		(782	)		(24,901	)
Recoveries		344			4,887			122			5,353
Provision		3,120			15,606			682			19,408
Ending Balance as of September 30, 2019	$	33,440		$	36,335		$	2,590		$	72,365

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 September 30, 2020
Commercial Loans:
C&I	$	703	$	79	$	12	$	794	$	4,172	$	1,116,189	$	1,121,155
CRE		367		51		-		418		17,242		2,324,815		2,342,475
PPP		-		-		-		-		-		514,558		514,558
Total Commercial Loans	$	1,070	$	130	$	12	$	1,212	$	21,414	$	3,955,562	$	3,978,188
Consumer Loans:
Auto	$	7,639	$	1,534	$	826	$	9,999	$	2,901	$	938,433	$	951,333
Other Consumer		3,373		1,447		1,121		5,941		370		634,011		640,322
Total Consumer Loans	$	11,012	$	2,981	$	1,947	$	15,940	$	3,271	$	1,572,444	$	1,591,655
Residential	$	1,505	$	256	$	620	$	2,381	$	11,211	$	1,977,208	$	1,990,800
Total Loans	$	13,587	$	3,367	$	2,579	$	19,533	$	35,896	$	7,505,214	$	7,560,643

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
C&I
By Internally Assigned Grade:
Pass	$	249,835	$	204,978	$	100,664	$	51,944	$	41,297	$	36,030	$	335,169	$	273	$	1,020,190
Special Mention		14,004		10,680		6,410		5,684		3,547		3,634		20,136		50		64,145
Substandard		635		5,614		9,437		3,574		920		5,510		9,586		9		35,285
Doubtful		-		1,351		-		184		-		-		-		-		1,535
Total C&I	$	264,474	$	222,623	$	116,511	$	61,386	$	45,764	$	45,174	$	364,891	$	332	$	1,121,155

CRE
By Internally Assigned Grade:
Pass	$	313,029	$	376,023	$	250,936	$	309,705	$	216,756	$	417,746	$	88,356	$	14,816	$	1,987,367
Special Mention		3,215		41,533		36,718		56,202		40,432		67,110		10,004		-		255,214
Substandard		282		2,937		8,942		8,573		5,709		57,484		6,455		-		90,382
Doubtful		-		1,897		-		-		-		7,615		-		-		9,512
Total CRE	$	316,526	$	422,390	$	296,596	$	374,480	$	262,897	$	549,955	$	104,815	$	14,816	$	2,342,475

PPP
By Internally Assigned Grade:
Pass	$	514,558	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	514,558
Total PPP	$	514,558	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	514,558

Auto
By Payment Activity:
Performing	$	153,299	$	347,290	$	229,833	$	138,721	$	58,144	$	20,296	$	23	$	-	$	947,606
Nonperforming		208		1,135		1,353		655		376		-		-		-		3,727
Total Auto	$	153,507	$	348,425	$	231,186	$	139,376	$	58,520	$	20,296	$	23	$	-	$	951,333

Other Consumer
By Payment Activity:
Performing	$	181,867	$	195,369	$	141,910	$	63,712	$	17,729	$	19,465	$	18,498	$	281	$	638,831
Nonperforming		169		509		305		220		99		179		10		-		1,491
Total Other Consumer	$	182,036	$	195,878	$	142,215	$	63,932	$	17,828	$	19,644	$	18,508	$	281	$	640,322

Residential
By Payment Activity:
Performing	$	158,672	$	222,947	$	225,715	$	191,436	$	171,022	$	724,257	$	271,304	$	13,616	$	1,978,969
Nonperforming		548		137		718		1,138		364		8,788		11		127		11,831
Total Residential	$	159,220	$	223,084	$	226,433	$	192,574	$	171,386	$	733,045	$	271,315	$	13,743	$	1,990,800

Total Loans	$	1,590,321	$	1,412,400	$	1,012,941	$	831,748	$	556,395	$	1,368,114	$	759,552	$	29,172	$	7,560,643

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 September 30, 2020						Nine Months Ended September 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		10	$	659	$	715		24	$	1,619	$	1,745
Total Troubled Debt Restructurings		10	$	659	$	715		25	$	1,663	$	1,789

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 September 30, 2020				Nine Months Ended September 30, 2020
(Dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Commercial Loans:
C&I		-	$	-		1	$	387
CRE		-		-		1		168
Total Commercial Loans		-	$	-		2	$	555
Residential		9	$	299		45	$	2,280
Total Troubled Debt Restructurings		9	$	299		47	$	2,835

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 September 30, 2019						Nine Months Ended September 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		-	$	-	$	-		9	$	134	$	134
Direct		1		30		37		9		418		434
Total Consumer Loans		1	$	30	$	37		18	$	552	$	568
Residential Real Estate		2	$	186	$	203		10	$	942	$	990
Total Troubled Debt Restructurings		3	$	216	$	240		31	$	1,947	$	2,011

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 September 30, 2019				Nine Months Ended September 30, 2019
(Dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Consumer Loans:
Indirect Auto		1	$	10		2	$	17
Direct		9		332		24		1,109
Total Consumer Loans		10	$	342		26	$	1,126
Residential Real Estate		9	$	572		19	$	1,087
Total Troubled Debt Restructurings		19	$	914		45	$	2,213

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				Nine Months Ended
	September 30, 2019				September 30, 2019
(In thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Originated
Commercial Loans:
C&I	$	115	$	-	$	291	$	1
CRE		2,554		30		3,577		91
Business Banking		1,002		7		1,111		18
Total Commercial Loans	$	3,671	$	37	$	4,979	$	110
Consumer Loans:
Indirect Auto	$	213	$	3	$	201	$	9
Direct		7,293		95		7,518		291
Total Consumer Loans	$	7,506	$	98	$	7,719	$	300
Residential Real Estate	$	7,629	$	93	$	7,428	$	252
Total Originated	$	18,806	$	228	$	20,126	$	662

Total Loans	$	18,806	$	228	$	20,126	$	662