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

12 Months Ended

Dec. 31, 2020

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

The following table illustrate the changes in the allowance for credit losses by our portfolio segments:

(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		(4,005	)		(21,938	)		(1,135	)		(27,078	)
Recoveries		786			8,541			618			9,945
Provision		27,005			19,078			5,051			51,134
Ending Balance as of December 31, 2020	$	50,942		$	37,803		$	21,255		$	110,000

The following tables illustrate 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		(3,151	)		(28,398	)		(991	)		(32,540	)
Recoveries		534			6,913			141			7,588
Provision		4,383			19,954			1,075			25,412
Ending Balance as of December 31, 2019	$	34,525		$	35,647		$	2,793		$	72,965

Balance as of December 31, 2017	$	27,606		$	36,830		$	5,064		$	69,500
Charge-offs		(3,463	)		(29,752	)		(913	)		(34,128	)
Recoveries		1,178			6,821			306			8,305
Provision		7,438			23,279			(1,889	)		28,828
Ending Balance as of December 31, 2018	$	32,759		$	37,178		$	2,568		$	72,505

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 December 31, 2020
Commercial Loans:
C&I	$	2,235	$	2,394	$	23	$	4,652	$	4,278	$	1,116,686	$	1,125,616
CRE		682		-		470		1,152		19,971		2,391,162		2,412,285
PPP		-		-		-		-		-		430,810		430,810
Total Commercial Loans	$	2,917	$	2,394	$	493	$	5,804	$	24,249	$	3,938,658	$	3,968,711
Consumer Loans:
Auto	$	9,125	$	1,553	$	866	$	11,544	$	2,730	$	877,831	$	892,105
Other Consumer		3,711		1,929		1,272		6,912		290		640,952		648,154
Total Consumer Loans	$	12,836	$	3,482	$	2,138	$	18,456	$	3,020	$	1,518,783	$	1,540,259
Residential	$	2,719	$	309	$	518	$	3,546	$	17,378	$	1,968,991	$	1,989,915
Total Loans	$	18,472	$	6,185	$	3,149	$	27,806	$	44,647	$	7,426,432	$	7,498,885

The following table sets 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 as of December 31, 2020:

(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	$	331,921	$	182,329	$	91,230	$	41,856	$	32,625	$	32,609	$	322,674	$	412	$	1,035,656
Special Mention		20,064		6,534		5,053		4,702		1,624		2,830		13,614		-		54,421
Substandard		338		6,364		10,219		3,388		791		4,272		9,945		14		35,331
Doubtful		-		-		-		207		-		1		-		-		208
Total C&I	$	352,323	$	195,227	$	106,502	$	50,153	$	35,040	$	39,712	$	346,233	$	426	$	1,125,616

CRE
By Internally Assigned Grade:
Pass	$	469,919	$	361,187	$	256,154	$	271,874	$	212,197	$	383,690	$	113,128	$	4,034	$	2,072,183
Special Mention		2,051		44,034		22,260		55,039		36,830		43,537		1,297		11,524		216,572
Substandard		536		5,307		18,298		15,691		6,018		62,168		1,501		4,642		114,161
Doubtful		-		1,897		-		-		-		7,472		-		-		9,369
Total CRE	$	472,506	$	412,425	$	296,712	$	342,604	$	255,045	$	496,867	$	115,926	$	20,200	$	2,412,285

PPP
By Internally Assigned Grade:
Pass	$	430,810	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	430,810
Total PPP	$	430,810	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	430,810

Auto
By Payment Activity:
Performing	$	197,881	$	314,034	$	201,850	$	115,977	$	45,495	$	13,250	$	22	$	-	$	888,509
Nonperforming		359		1,140		1,135		525		437		-		-		-		3,596
Total Auto	$	198,240	$	315,174	$	202,985	$	116,502	$	45,932	$	13,250	$	22	$	-	$	892,105

Other Consumer
By Payment Activity:
Performing	$	234,628	$	178,411	$	127,549	$	55,676	$	14,255	$	17,414	$	18,588	$	71	$	646,592
Nonperforming		339		418		307		265		90		133		10		-		1,562
Total Other Consumer	$	234,967	$	178,829	$	127,856	$	55,941	$	14,345	$	17,547	$	18,598	$	71	$	648,154

Residential
By Payment Activity:
Performing	$	237,338	$	210,505	$	213,437	$	182,993	$	164,424	$	684,495	$	268,878	$	9,991	$	1,972,061
Nonperforming		1,245		659		2,318		2,535		902		10,195		-		-		17,854
Total Residential	$	238,583	$	211,164	$	215,755	$	185,528	$	165,326	$	694,690	$	268,878	$	9,991	$	1,989,915

Total Loans	$	1,927,429	$	1,312,819	$	949,810	$	750,728	$	515,688	$	1,262,066	$	749,657	$	30,688	$	7,498,885

(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	Business
By Internally Assigned Grade:	Banking		Total
Non-classified	$	524,725	$	524,725
Classified		13,803		13,803
Total	$	538,528	$	538,528

Consumer Credit Exposure			Specialty
By Payment Activity:	Indirect Auto		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	Residential
By Payment Activity:	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	Business
By Internally Assigned Grade:	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	Residential
By Payment Activity:	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:

	Year Ended December 31, 2020
(Dollars in thousands)	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial Loans:
C&I		1	$	22	$	22
Total Commercial Loans		1	$	22	$	22
Consumer Loans:
Auto		1	$	44	$	44
Total Consumer Loans		1	$	44	$	44
Residential		35	$	2,834	$	2,960
Total Troubled Debt Restructurings		37	$	2,900	$	3,026

The following table illustrates the recorded investment and number of modifications for TDRs where a concession has been made and subsequently defaulted during the year:

	Year Ended December 31, 2020
(Dollars in thousands)	Number of Contracts		Recorded Investment
Commercial Loans:
C&I		1	$	387
CRE		1		168
Total Commercial Loans		2	$	555
Consumer Loans:
Auto		1	$	6
Total Consumer Loans		1	$	6
Residential		61	$	3,213
Total Trouble Debt Restructurings		64	$	3,774

The following tables illustrate 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:

	Year Ended December 31, 2019
(Dollars in thousands)	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial Loans:
C&I		1	$	65	$	65
CRE		1		402		402
Business Banking		3		425		431
Total Commercial Loans		5	$	892	$	898
Consumer Loans:
Indirect Auto		9	$	134	$	134
Direct		11		450		480
Total Consumer Loans		20	$	584	$	614
Residential Real Estate		12	$	1,032	$	1,091
Total Troubled Debt Restructurings		37	$	2,508	$	2,603

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:

	Year Ended December 31, 2019
(Dollars in thousands)	Number of Contracts		Recorded Investment
Consumer Loans:
Indirect Auto		3	$	18
Direct		29		1,385
Total Consumer Loans		32	$	1,403
Residential Real Estate		23	$	1,203
Total Troubled Debt Restructurings		55	$	2,606

Impaired Loans and Specific Reserve Allocations

The following table provides information on 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:

	December 31, 2019				December 31, 2018
(In thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Originated
Commercial Loans:
C&I	$	242	$	1	$	453	$	1
CRE		3,311		123		4,078		128
Business Banking		1,089		24		1,018		26
Total Commercial Loans	$	4,642	$	148	$	5,549	$	155
Consumer Loans:
Indirect Auto	$	192	$	10	$	179	$	10
Direct		7,387		382		7,922		431
Specialty Lending		7		1		-		-
Total Consumer Loans	$	7,586	$	393	$	8,101	$	441
Residential Real Estate	$	7,505	$	350	$	6,779	$	305
Total Originated	$	19,733	$	891	$	20,429	$	901

Total Loans	$	19,733	$	891	$	20,429	$	901