XML 72 R13.htm IDEA: XBRL DOCUMENT
v3.2.0.727

Loans and Loans Held for Sale | 6 Months Ended
--- | ---
Jun. 30, 2015
Receivables [Abstract] |
Loans and Loans Held for Sale | Loans are presented net of unearned income of $14.0 million and $2.1 million at June 30, 2015 and December 31, 2014. Included in the $14.0 million is a $14.7 million net discount related to purchase accounting fair value adjustments. The following table indicates the composition of the loans as of the dates presented:
(dollars in thousands) | June 30, 2015 |  | December 31, 2014
Commercial |  |  |
Commercial real estate | $ | 2,054,935 |  |  | $ | 1,682,236 |
Commercial and industrial | 1,239,382 |  |  | 994,138 |
Commercial construction | 344,983 |  |  | 216,148 |
Total Commercial Loans | 3,639,300 |  |  | 2,892,522 |
Consumer |  |  |
Residential mortgage | 599,502 |  |  | 489,586 |
Home equity | 457,813 |  |  | 418,563 |
Installment and other consumer | 94,437 |  |  | 65,567 |
Consumer construction | 7,446 |  |  | 2,508 |
Total Consumer Loans | 1,159,198 |  |  | 976,224 |
Total Portfolio Loans | 4,798,498 |  |  | 3,868,746 |
Loans held for sale | 13,634 |  |  | 2,970 |
Total Loans | $ | 4,812,132 |  |  | $ | 3,871,716 |
We attempt to limit our exposure to credit risk by diversifying our loan portfolio by segment, collateral and industry and actively managing concentrations. When concentrations exist in certain segments, we mitigate this risk by monitoring the relevant economic indicators and internal risk rating trends and through stress testing of the loans in these segments. Total commercial loans represented 76 percent of total portfolio loans at June 30, 2015 and 75 percent of total portfolio loans at December 31, 2014. Within our commercial portfolio, the CRE and commercial construction portfolios combined comprised $2.4 billion or 66 percent of total commercial loans and 50 percent of total portfolio loans at June 30, 2015 and 66 percent of total commercial loans and 49 percent of total portfolio loans at December 31, 2014. Of the $2.4 billion of CRE and commercial construction loans, $424.0 million were added as a result of the Merger. Further segmentation of the CRE and commercial construction portfolios by industry and collateral type reveal no concentration in excess of 7.0 percent of total loans at June 30, 2015 and December 31, 2014. Our market area includes Pennsylvania and the contiguous states of Ohio, West Virginia, New York and Maryland. The majority of our commercial and consumer loans are made to businesses and individuals in this market area resulting in a geographic concentration. We believe our knowledge and familiarity with customers and conditions locally outweighs this geographic concentration risk. The conditions of the local and regional economies are monitored closely through publicly available data as well as information supplied by our customers. Management believes underwriting guidelines, active monitoring of economic conditions and ongoing review by credit administration mitigates the concentration risk present in the loan portfolio. Our CRE and commercial construction portfolios had out of market exposure of 6.3 percent of the combined portfolio and 3.1 percent of total loans at June 30, 2015 and 8.0 percent of the combined portfolio and 3.9 percent of total loans at December 31, 2014. Troubled debt restructurings, or TDRs, are loans where we, for economic or legal reasons related to a borrower’s financial difficulties, grant a concession to the borrower that we would not otherwise grant. We strive to identify borrowers in financial difficulty early and work with them to modify the terms before their loan reaches nonaccrual status. These modified terms generally include extensions of maturity dates at a stated interest rate lower than the current market rate for a new loan with similar risk characteristics, reductions in contractual interest rates or principal deferment. While unusual, there may be instances of principal forgiveness. These modifications are generally for longer term periods that would not be considered insignificant. Additionally, we classify loans where the debt obligation has been discharged through a Chapter 7 Bankruptcy and not reaffirmed as TDRs. We individually evaluate all substandard commercial loans that have experienced a forbearance or change in terms agreement, as well as all substandard consumer and residential mortgage loans that entered into an agreement to modify their existing loan to determine if they should be designated as TDRs. All TDRs are considered to be impaired loans and will be reported as impaired loans for the remaining life of the loan, unless the restructuring agreement specifies an interest rate equal to or greater than the rate that would be accepted at the time of the restructuring for a new loan with comparable risk and it is fully expected that the remaining principal and interest will be collected according to the restructured agreement. Further, all impaired loans are reported as nonaccrual loans unless the loan is a TDR that has met the requirements to be returned to accruing status. TDRs can be returned to accruing status if the ultimate collectability of all contractual amounts due, according to the restructured agreement, is not in doubt and there is a period of a minimum of six months of satisfactory payment performance by the borrower either immediately before or after the restructuring. The following table summarizes the restructured loans as of the dates presented:
| June 30, 2015 |  | December 31, 2014
(dollars in thousands) | Performing TDRs | Nonperforming TDRs | Total TDRs |  | Performing TDRs | Nonperforming TDRs | Total TDRs
Commercial real estate | $ | 13,045 |  | $ | 3,553 |  | $ | 16,598 |  |  | $ | 16,939 |  | $ | 2,180 |  | $ | 19,119 |
Commercial and industrial | 7,899 |  | 2,226 |  | 10,125 |  |  | 8,074 |  | 356 |  | 8,430 |
Commercial construction | 5,655 |  | 1,969 |  | 7,624 |  |  | 5,736 |  | 1,869 |  | 7,605 |
Residential mortgage | 2,622 |  | 609 |  | 3,231 |  |  | 2,839 |  | 459 |  | 3,298 |
Home equity | 3,302 |  | 411 |  | 3,713 |  |  | 3,342 |  | 562 |  | 3,904 |
Installment and other consumer | 36 |  | 160 |  | 196 |  |  | 53 |  | 10 |  | 63 |
Total | $ | 32,559 |  | $ | 8,928 |  | $ | 41,487 |  |  | $ | 36,983 |  | $ | 5,436 |  | $ | 42,419 |
There were six TDRs that returned to accruing status totaling $0.3 million during the three and six months ended June 30, 2015 and there were no TDRs that returned to accruing status for the three and six months ended June 30, 2014. The following tables present the restructured loans during the periods presented:
| Three Months Ended June 30, 2015 |  | Three Months Ended June 30, 2014
(dollars in thousands) | Number of Loans | Pre-Modification Outstanding Recorded Investment(1) | Post-Modification Outstanding Recorded Investment(1) | Total Difference in Recorded Investment |  | Number of Loans | Pre-Modification Outstanding Recorded Investment(1) | Post-Modification Outstanding Recorded Investment(1) | Total Difference in Recorded Investment
Commercial real estate |  |  |  |  |  |  |  |  |
Principal deferral | — |  | $ | — |  | $ | — |  | $ | — |  |  | 1 |  | $ | 129 |  | $ | 127 |  | $ | (2 | )
Commercial and industrial |  |  |  |  |  |  |  |  |  |
Principal forgiveness | 1 |  | 400 |  | 400 |  | — |  |  | — |  | — |  | — |  | — |
Residential mortgage |  |  |  |  |  |  |  |  |  |
Chapter 7 bankruptcy(2) | — |  | — |  | — |  | — |  |  | 1 |  | 52 |  | 52 |  | — |
Maturity date extension and interest rate reduction | 2 |  | 225 |  | 225 |  | — |  |  | — |  | — |  | — |  | — |
Home equity |  |  |  |  |  |  |  |  |  |
Chapter 7 bankruptcy(2) | 4 |  | 171 |  | 171 |  | — |  |  | 4 |  | 43 |  | 41 |  | (2 | )
Installment and other consumer |  |  |  |  |  |  |  |  |
Chapter 7 bankruptcy(2) | — |  | — |  | — |  | $ | — |  |  | 1 |  | 9 |  | 9 |  | $ | — |
Total by Concession Type |  |  |  |  |  |  |  |  |  |  |  |  |
Principal forgiveness | 1 |  | $ | 400 |  | $ | 400 |  | $ | — |  |  | — |  | $ | — |  | $ | — |  | $ | — |
Principal deferral | — |  | — |  | — |  | — |  |  | 1 |  | 129 |  | 127 |  | (2 | )
Maturity date extension and interest rate reduction | 2 |  | 225 |  | 225 |  | — |  |  | — |  | — |  | — |  | — |
Chapter 7 bankruptcy(2) | 4 |  | 171 |  | 171 |  | — |  |  | 6 |  | 104 |  | 102 |  | (2 | )
Total | 7 |  | $ | 796 |  | $ | 796 |  | $ | — |  |  | 7 |  | $ | 233 |  | $ | 229 |  | $ | (4 | )
(1) Excludes loans that were fully paid off or fully charged-off by period end. The pre-modification balance represents the balance outstanding prior to modification. The post-modification balance represents the outstanding balance at period end. (2) Chapter 7 bankruptcy loans where the debt has been legally discharged through the bankruptcy court and not reaffirmed.
| Six Months Ended June 30, 2015 |  | Six Months Ended June 30, 2014
(dollars in thousands) | Number of Loans | Pre-Modification Outstanding Recorded Investment(1) | Post-Modification Outstanding Recorded Investment(1) | Total Difference in Recorded Investment |  | Number of Loans | Pre-Modification Outstanding Recorded Investment(1) | Post-Modification Outstanding Recorded Investment(1) | Total Difference in Recorded Investment
Commercial real estate |  |  |  |  |  |  |  |  |
Principal deferral | 2 |  | $ | 2,851 |  | $ | 2,851 |  | $ | — |  |  | 1 |  | $ | 129 |  | $ | 127 |  | $ | (2 | )
Commercial and industrial |  |  |  |  |  |  |  |  |
Principal forgiveness | 1 |  | 400 |  | 400 |  | — |  |  | — |  | — |  | — |  | — |
Principal deferral | 6 |  | 661 |  | 661 |  | — |  |  | — |  | — |  | — |  | — |
Chapter 7 bankruptcy(2) | 1 |  | 3 |  | 1 |  | (2 | ) |  | 1 |  | 287 |  | 286 |  | (1 | )
Maturity date extension | 1 |  | 780 |  | 765 |  | (15 | ) |  | — |  | — |  | — |  | — |
Commercial Construction |  |  |  |  |  |  |  |  |
Principal deferral | 1 |  | 104 |  | 103 |  | (1 | ) |  | — |  | — |  | — |  | — |
Maturity date extension | — |  | — |  | — |  | — |  |  | 1 |  | 1,019 |  | 1,019 |  | — |
Residential mortgage |  |  |  |  |  |  |  |  |
Chapter 7 bankruptcy(2) | — |  | — |  | — |  | — |  |  | 5 |  | 329 |  | 327 |  | (2 | )
Maturity date extension and interest rate reduction | 2 |  | 225 |  | 225 |  | — |  |  | — |  | — |  | — |  | — |
Home equity |  |  |  |  |  |  |  |  |
Chapter 7 bankruptcy(2) | 12 |  | 313 |  | 304 |  | (9 | ) |  | 10 |  | 269 |  | 251 |  | (18 | )
Maturity date extension | 1 |  | 71 |  | 71 |  | — |  |  | — |  | — |  | — |  | — |
Installment and other consumer |  |  |  |  |  |  |  |  |
Chapter 7 bankruptcy(2) | — |  | — |  | — |  | $ | — |  |  | 1 |  | 9 |  | 9 |  | $ | — |
Total by Concession Type |  |  |  |  |  |  |  |  |
Principal forgiveness | 1 |  | $ | 400 |  | $ | 400 |  | $ | — |  |  | — |  | $ | — |  | $ | — |  | $ | — |
Principal deferral | 9 |  | 3,616 |  | 3,615 |  | (1 | ) |  | 1 |  | 129 |  | 127 |  | (2 | )
Chapter 7 bankruptcy(2) | 13 |  | 316 |  | 305 |  | (11 | ) |  | 17 |  | 894 |  | 873 |  | (21 | )
Maturity date extension and interest rate reduction | 2 |  | 225 |  | 225 |  | — |  |  | — |  | — |  | — |  | — |
Maturity date extension | 2 |  | 851 |  | 836 |  | (15 | ) |  | 1 |  | 1,019 |  | 1,019 |  | — |
Total | 27 |  | 5,408 |  | 5,381 |  | $ | (27 | ) |  | 19 |  | $ | 2,042 |  | $ | 2,019 |  | $ | (23 | )
(1) Excludes loans that were fully paid off or fully charged-off by period end. The pre-modification balance represents the balance outstanding prior to modification. The post-modification balance represents the outstanding balance at period end. (2) Chapter 7 bankruptcy loans where the debt has been legally discharged through the bankruptcy court and not reaffirmed.
For the three months ended June 30, 2015, we modified four C&I loans totaling $5.5 million, four commercial construction loans totaling $1.3 million, one CRE loan totaling $0.8 million and two home equity loans totaling $0.2 million that were not considered to be TDRs. For the six months ended June 30, 2015 we modified six C&I loans totaling $5.7 million, four commercial construction loans totaling $1.3 million, three CRE loans totaling $1.0 million and two home equity loans totaling $0.2 million that were not considered to be TDRs. The modifications represented instances where there were insignificant delays in payment of three months or less or we concluded that no concession was granted. As of June 30, 2015 we have no commitments to lend additional funds on any TDRs. Defaulted TDRs are defined as loans having a payment default of 90 days or more after the restructuring takes place. The following tables present a summary of TDRs which defaulted during the periods presented that had been restructured within the last 12 months prior to defaulting:
| Defaulted TDRs
| Three Months Ended |  | Three Months Ended
| June 30, 2015 |  | June 30, 2014
(dollars in thousands) | Number of Defaults | Recorded Investment |  |  | Number of Defaults | Recorded Investment |
Home equity | 2 | $ | 119 |  |  | — | $ | — |
Total | 2 | $ | 119 |  |  | — | $ | — |
| Defaulted TDRs
| Six Months Ended |  | Six Months Ended
| June 30, 2015 |  | June 30, 2014
(dollars in thousands) | Number of Defaults | Recorded Investment |  |  | Number of Defaults | Recorded Investment |
Residential mortgage | 1 | $ | 183 |  |  | 1 | $ | 72 |
Home equity | 3 | 124 |  |  | — | — |
Total | 4 | $ | 307 |  |  | 1 | $ | 72 |
The following table is a summary of nonperforming assets as of the dates presented:
| Nonperforming Assets
(dollars in thousands) | June 30, 2015 |  | December 31, 2014
Nonperforming Assets |  |  |
Nonaccrual loans | $ | 10,211 |  |  | $ | 7,021 |
Nonaccrual TDRs | 8,928 |  |  | 5,436 |
Total nonaccrual loans | 19,139 |  |  | 12,457 |
OREO | 750 |  |  | 166 |
Total Nonperforming Assets | $ | 19,889 |  |  | $ | 12,623 |

X
- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=49124121&loc=d3e5066-111524 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=49124121&loc=d3e5162-111524 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(k)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=49124121&loc=d3e5074-111524 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Article 9 + Details
Name: | us-gaap_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration